Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2020 | Jul. 29, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q2 | |
Entity Registrant Name | Heritage Insurance Holdings, Inc. | |
Entity Central Index Key | 0001598665 | |
Entity Current Reporting Status | Yes | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 28,058,596 | |
Entity File Number | 001-36462 | |
Entity Tax Identification Number | 45-5338504 | |
Entity Address, Address Line One | 2600 McCormick Drive | |
Entity Address, Address Line Two | Suite 300 | |
Entity Address, City or Town | Clearwater | |
Entity Address, State or Province | FL | |
Entity Address, Postal Zip Code | 33759 | |
City Area Code | 727 | |
Local Phone Number | 362-7200 | |
Entity Interactive Data Current | Yes | |
Entity Incorporation, State or Country Code | DE | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Title of each class | Common Stock, par value $0.0001 per share | |
Trading Symbol(s) | HRTG | |
Name of each exchange on which registered | NYSE |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
ASSETS | ||
Fixed maturities, available-for-sale, at fair value (amortized cost of $671,961 and $577,789) | $ 698,277 | $ 587,256 |
Equity securities, at fair value, (cost $1,599 and $1,618) | 1,599 | 1,618 |
Other investments | 6,374 | 6,375 |
Total investments | 706,250 | 595,249 |
Cash and cash equivalents | 288,342 | 268,351 |
Restricted cash | 11,849 | 14,657 |
Accrued investment income | 4,833 | 4,377 |
Premiums receivable, net | 66,188 | 63,685 |
Reinsurance recoverable on paid and unpaid claims, net of allowance for estimated uncollectible reinsurance of $39 | 374,709 | 428,903 |
Prepaid reinsurance premiums | 361,256 | 224,102 |
Income taxes receivable | 4,651 | 3,171 |
Deferred policy acquisition costs, net | 81,590 | 77,211 |
Property and equipment, net | 19,998 | 20,753 |
Intangibles, net | 65,461 | 68,642 |
Goodwill | 152,459 | 152,459 |
Other assets | 28,804 | 18,110 |
Total Assets | 2,166,390 | 1,939,670 |
LIABILITIES AND STOCKHOLDERS' EQUITY | ||
Unpaid losses and loss adjustment expenses | 620,718 | 613,533 |
Unearned premiums | 529,321 | 486,220 |
Reinsurance payable | 296,606 | 156,351 |
Long-term debt, net | 126,056 | 129,248 |
Deferred income tax, net | 20,957 | 12,623 |
Advance premiums | 30,870 | 16,504 |
Accrued compensation | 11,250 | 5,347 |
Accounts payable and other liabilities | 68,113 | 71,045 |
Total Liabilities | 1,703,891 | 1,490,871 |
Commitments and contingencies (Note 17) | ||
Stockholders’ Equity: | ||
Common stock, $0.0001 par value, 50,000,000 shares authorized, 28,058,596 shares issued and 27,738,062 shares outstanding at June 30, 2020; 28,996,452 shares issued and 28,650,918 shares outstanding at December 31, 2019 | 3 | 3 |
Additional paid-in capital | 332,037 | 329,568 |
Accumulated other comprehensive income | 20,263 | 7,330 |
Treasury stock, at cost, 9,279,839 and 8,349,483 shares, respectively | (115,365) | (105,368) |
Retained earnings | 225,561 | 217,266 |
Total Stockholders' Equity | 462,499 | 448,799 |
Total Liabilities and Stockholders' Equity | $ 2,166,390 | $ 1,939,670 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Statement Of Financial Position [Abstract] | ||
Fixed maturities, at amortized cost | $ 671,961 | $ 577,789 |
Equity securities, cost | 1,599 | 1,618 |
Reinsurance recoverable net of allowance for estimated uncollectible reinsurance | $ 39 | $ 39 |
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 28,058,596 | 28,996,452 |
Common stock, shares outstanding | 27,738,062 | 28,650,918 |
Treasury stock, shares | 9,279,839 | 8,349,483 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Other Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | ||
REVENUES: | |||||
Gross premiums written | $ 290,432 | $ 254,840 | $ 519,534 | $ 465,188 | |
Change in gross unearned premiums | (48,640) | (24,882) | (43,026) | (6,640) | |
Gross premiums earned | 241,792 | 229,958 | 476,508 | 458,548 | |
Ceded premiums | (112,735) | (115,875) | (221,445) | (234,774) | |
Net premiums earned | 129,057 | 114,083 | 255,063 | 223,774 | |
Net investment income | 3,296 | 3,830 | 6,966 | 7,502 | |
Net realized and unrealized gains (losses) | (38) | 1,303 | 22 | 2,327 | |
Other revenue | 3,697 | 3,627 | 6,668 | 7,501 | |
Total revenues | 136,012 | 122,843 | 268,719 | 241,104 | |
EXPENSES: | |||||
Losses and loss adjustment expenses | 78,869 | 74,299 | 147,050 | 136,438 | |
Policy acquisition costs, net of ceding commission income of $11.3 and $21.7 | [1] | 30,237 | 27,087 | 60,284 | 53,107 |
General and administrative expenses, net of ceding commission income of $3.6 and $7.1 | [1] | 19,943 | 18,384 | 41,661 | 36,988 |
Total expenses | 129,049 | 119,770 | 248,995 | 226,533 | |
Operating income | 6,963 | 3,073 | 19,724 | 14,571 | |
Interest expense, net | 1,721 | 1,984 | 3,688 | 4,101 | |
Other non-operating loss, net | 48 | ||||
Income before income taxes | 5,242 | 1,089 | 16,036 | 10,422 | |
Provision for income taxes | 1,110 | 368 | 4,284 | 2,737 | |
Net income | 4,132 | 721 | 11,752 | 7,685 | |
OTHER COMPREHENSIVE INCOME | |||||
Change in net unrealized gains on investments | 14,823 | 7,068 | 16,850 | 15,104 | |
Reclassification adjustment for net realized investment (gains) losses | 38 | 59 | (22) | 394 | |
Income tax expense related to items of other comprehensive income | (3,440) | (1,304) | (3,895) | (3,712) | |
Total comprehensive income | $ 15,553 | $ 6,544 | $ 24,685 | $ 19,471 | |
Weighted average shares outstanding | |||||
Basic | 27,876,801 | 29,346,234 | 28,212,735 | 29,442,363 | |
Diluted | 27,913,696 | 29,352,796 | 28,231,273 | 29,447,668 | |
Earnings per share | |||||
Basic | $ 0.15 | $ 0.02 | $ 0.42 | $ 0.26 | |
Diluted | $ 0.15 | $ 0.02 | $ 0.42 | $ 0.26 | |
[1] | Parenthetical values are presented in millions for the three and six months ended June 30, 2020 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Operations and Other Comprehensive Income (Parenthetical) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2020 | Jun. 30, 2020 | |
Ceding commission income | $ 14,892 | $ 28,821 |
Policy Acquisition Costs [Member] | ||
Ceding commission income | 11,300 | 21,700 |
General and Administrative Expenses [Member] | ||
Ceding commission income | $ 3,600 | $ 7,100 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment [Member] | Cumulative Effect, Period of Adoption, Adjusted Balance [Member] | Common Stock [Member] | Common Stock [Member]Cumulative Effect, Period of Adoption, Adjusted Balance [Member] | Additional Paid-In Capital [Member] | Additional Paid-In Capital [Member]Cumulative Effect, Period of Adoption, Adjusted Balance [Member] | Retained Earnings [Member] | Retained Earnings [Member]Cumulative Effect, Period of Adoption, Adjustment [Member] | Retained Earnings [Member]Cumulative Effect, Period of Adoption, Adjusted Balance [Member] | Treasury Shares [Member] | Treasury Shares [Member]Cumulative Effect, Period of Adoption, Adjusted Balance [Member] | Accumulated Other Comprehensive Income [Member] | Accumulated Other Comprehensive Income [Member]Cumulative Effect, Period of Adoption, Adjusted Balance [Member] |
Beginning Balance at Dec. 31, 2018 | $ 425,333 | $ 3 | $ 325,292 | $ 195,750 | $ (89,185) | $ (6,527) | ||||||||
Beginning Balance, Shares at Dec. 31, 2018 | 29,477,756 | |||||||||||||
Net unrealized change in investments, net of tax | 5,963 | 5,963 | ||||||||||||
Shares tendered for income taxes withholding | (118) | (118) | ||||||||||||
Shares tendered for income taxes withholding, Shares | (8,000) | |||||||||||||
Restricted stock vested, Shares | 25,000 | |||||||||||||
Stock-based compensation on restricted stock | 1,345 | 1,345 | ||||||||||||
Convertible option debt extinguishment, net of tax | (1,840) | (1,840) | ||||||||||||
Stock issued on convertible note conversion | 4,210 | 4,210 | ||||||||||||
Stock issued on convertible note conversion, Shares | 285,201 | |||||||||||||
Stock buy-back | (5,011) | (5,011) | ||||||||||||
Stock buy-back, Shares | (347,740) | |||||||||||||
Tax rate change | 48 | 48 | ||||||||||||
Cash dividends declared | (1,807) | (1,807) | ||||||||||||
Net income | 6,964 | 6,964 | ||||||||||||
Ending balance at Mar. 31, 2019 | 435,087 | $ 3 | 328,937 | 200,907 | (94,196) | (564) | ||||||||
Ending balance, Shares at Mar. 31, 2019 | 29,432,217 | |||||||||||||
Beginning Balance at Dec. 31, 2018 | 425,333 | $ 3 | 325,292 | 195,750 | (89,185) | (6,527) | ||||||||
Beginning Balance, Shares at Dec. 31, 2018 | 29,477,756 | |||||||||||||
Net income | 7,685 | |||||||||||||
Ending balance at Jun. 30, 2019 | 438,850 | $ 3 | 330,281 | 199,836 | (96,529) | 5,259 | ||||||||
Ending balance, Shares at Jun. 30, 2019 | 29,274,577 | |||||||||||||
Beginning Balance at Mar. 31, 2019 | 435,087 | $ 3 | 328,937 | 200,907 | (94,196) | (564) | ||||||||
Beginning Balance, Shares at Mar. 31, 2019 | 29,432,217 | |||||||||||||
Net unrealized change in investments, net of tax | 5,823 | 5,823 | ||||||||||||
Stock-based compensation on restricted stock | 1,344 | 1,344 | ||||||||||||
Stock buy-back | (2,333) | (2,333) | ||||||||||||
Stock buy-back, Shares | (157,640) | |||||||||||||
Cash dividends declared | (1,792) | (1,792) | ||||||||||||
Net income | 721 | 721 | ||||||||||||
Ending balance at Jun. 30, 2019 | 438,850 | $ 3 | 330,281 | 199,836 | (96,529) | 5,259 | ||||||||
Ending balance, Shares at Jun. 30, 2019 | 29,274,577 | |||||||||||||
Beginning Balance at Dec. 31, 2019 | 448,799 | $ (34) | $ 448,765 | $ 3 | $ 3 | 329,568 | $ 329,568 | 217,266 | $ (34) | $ 217,232 | (105,368) | $ (105,368) | 7,330 | $ 7,330 |
Beginning Balance, Shares at Dec. 31, 2019 | 28,650,918 | 28,650,918 | ||||||||||||
Net unrealized change in investments, net of tax | 1,512 | 1,512 | ||||||||||||
Shares tendered for income taxes withholding | (233) | (233) | ||||||||||||
Shares tendered for income taxes withholding, Shares | (17,500) | |||||||||||||
Restricted stock vested, Shares | 25,000 | |||||||||||||
Stock-based compensation on restricted stock | 1,345 | 1,345 | ||||||||||||
Stock buy-back | (7,986) | (7,986) | ||||||||||||
Stock buy-back, Shares | (766,900) | |||||||||||||
Cash dividends declared | (1,726) | (1,726) | ||||||||||||
Net income | 7,620 | 7,620 | ||||||||||||
Ending balance at Mar. 31, 2020 | 449,297 | $ 3 | 330,680 | 223,126 | (113,354) | 8,842 | ||||||||
Ending balance, Shares at Mar. 31, 2020 | 27,891,518 | |||||||||||||
Beginning Balance at Dec. 31, 2019 | 448,799 | $ (34) | $ 448,765 | $ 3 | $ 3 | 329,568 | $ 329,568 | 217,266 | $ (34) | $ 217,232 | (105,368) | $ (105,368) | 7,330 | $ 7,330 |
Beginning Balance, Shares at Dec. 31, 2019 | 28,650,918 | 28,650,918 | ||||||||||||
Stock buy-back | $ (10,000) | |||||||||||||
Stock buy-back, Shares | (930,356) | |||||||||||||
Net income | $ 11,752 | |||||||||||||
Ending balance at Jun. 30, 2020 | 462,499 | $ 3 | 332,037 | 225,561 | (115,365) | 20,263 | ||||||||
Ending balance, Shares at Jun. 30, 2020 | 27,738,062 | |||||||||||||
Beginning Balance at Mar. 31, 2020 | $ 449,297 | $ 3 | 330,680 | 223,126 | (113,354) | 8,842 | ||||||||
Beginning Balance, Shares at Mar. 31, 2020 | 27,891,518 | |||||||||||||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201613Member | |||||||||||||
Net unrealized change in investments, net of tax | $ 11,421 | 11,421 | ||||||||||||
Deferred tax adjustment for credit expected losses | (4) | (4) | ||||||||||||
Restricted stock vested, Shares | 10,000 | |||||||||||||
Stock-based compensation on restricted stock | 1,357 | 1,357 | ||||||||||||
Stock buy-back | $ (2,011) | (2,011) | ||||||||||||
Stock buy-back, Shares | (163,456) | (163,456) | ||||||||||||
Cash dividends declared | $ (1,693) | (1,693) | ||||||||||||
Net income | 4,132 | 4,132 | ||||||||||||
Ending balance at Jun. 30, 2020 | $ 462,499 | $ 3 | $ 332,037 | $ 225,561 | $ (115,365) | $ 20,263 | ||||||||
Ending balance, Shares at Jun. 30, 2020 | 27,738,062 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - Parenthetical - $ / shares | 3 Months Ended | |||
Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2019 | Mar. 31, 2019 | |
Statement Of Stockholders Equity [Abstract] | ||||
Common stock, dividends, per share, declared | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
OPERATING ACTIVITIES | ||
Net income | $ 11,752 | $ 7,685 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Stock-based compensation | 2,702 | 2,689 |
Bond amortization and accretion | 2,761 | 2,514 |
Noncash lease expense | 47 | |
Amortization of original issuance discount on debt | 701 | 730 |
Depreciation and amortization | 4,039 | 5,492 |
Net unrealized investment gains | (2,721) | |
Net realized (gains) losses | (22) | 394 |
Net (gain)/loss from repurchase of debt | (48) | |
Deferred income taxes | 4,438 | 4,525 |
Changes in operating assets and liabilities: | ||
Accrued investment income | (456) | (81) |
Premiums receivable, net | (2,503) | (45) |
Prepaid reinsurance premiums | (137,154) | (98,472) |
Reinsurance recoverable on paid and unpaid claims | 54,166 | (12,476) |
Income taxes receivable | (1,480) | 17,855 |
Deferred policy acquisition costs, net | (4,379) | (1,009) |
Right of use leased asset | 507 | |
Other assets | (11,248) | (8,811) |
Unpaid losses and loss adjustment expenses | 7,185 | (1,947) |
Unearned premiums | 43,101 | 6,805 |
Reinsurance payable | 140,255 | 157,859 |
Accrued interest | 998 | 128 |
Accrued compensation | 5,903 | (4,468) |
Advance premiums | 14,366 | 4,463 |
Income taxes payable | (4,651) | (14,396) |
Other liabilities | 769 | 9,751 |
Net cash provided by operating activities | 131,797 | 76,415 |
INVESTING ACTIVITIES | ||
Fixed maturity securities sales, maturities and paydowns | 88,150 | 61,290 |
Fixed maturity securities purchases | (185,082) | (95,336) |
Equity securities sales | 26 | 26,529 |
Equity securities purchases | (6) | (4,833) |
Limited partnership interest | (20,006) | |
Proceeds from sale of assets | 13 | 71 |
Cost of property and equipment acquired | (116) | (4,487) |
Net cash used in investing activities | (97,015) | (36,772) |
FINANCING ACTIVITIES | ||
Repayment of term note | (3,750) | (11,875) |
Mortgage loan payments | (143) | (138) |
Repurchase of convertible notes | (2,869) | |
Purchase of treasury stock | (9,997) | (7,344) |
Tax withholdings on share-based compensation awards | (233) | (118) |
Dividends paid | (3,476) | (3,396) |
Net cash used in financing activities | (17,599) | (25,740) |
Increase in cash, cash equivalents, and restricted cash | 17,183 | 13,903 |
Cash, cash equivalents and restricted cash, beginning of period | 283,008 | 262,370 |
Cash, cash equivalents and restricted cash, end of period | 300,191 | 276,273 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | ||
Income taxes paid | 1,735 | 13,728 |
Interest paid | $ 3,213 | $ 3,529 |
Issuance of shares on conversion of convertible notes | 4,210 |
Condensed Consolidated Statem_6
Condensed Consolidated Statements of Cash Flows (Parenthetical) (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | Dec. 31, 2018 |
Statement Of Cash Flows [Abstract] | ||||
Cash and cash equivalents | $ 288,342 | $ 268,351 | ||
Restricted cash | 11,849 | 14,657 | ||
Total | $ 300,191 | $ 283,008 | $ 276,273 | $ 262,370 |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Basis of Presentation and Significant Accounting Policies | NOTE 1. BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The condensed consolidated financial statements include the accounts of Heritage Insurance Holdings, Inc. (together with its subsidiaries, the “Company” “we”, “us” or “our”). These statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Certain financial information that is normally included in annual consolidated financial statements prepared in accordance with GAAP, but that is not required for interim reporting purposes, has been omitted. In the opinion of the Company’s management, all material intercompany transactions and balances have been eliminated and all adjustments consisting of normal recurring accruals which are necessary for a fair statement of the financial condition and results of operations for the interim periods have been reflected. The accompanying interim condensed consolidated financial statements and related footnotes should be read in conjunction with the Company’s audited consolidated financial statements and related footnotes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019 (the “2019 Form 10-K”). Significant accounting policies The accounting policies of the Company are set forth in Note 1 to condensed consolidated financial statements contained in the Company’s 2019 Form 10-K. Reclassification Certain prior year amounts have been reclassified to conform to the current year presentation. Recently Adopted Accounting Pronouncements In 2016, the Financial Accounting Standard Board (“FASB”) issued Accounting Standard Update (“ASU”) Financial Instruments – Credit Losses ASU No. 2016-13, Measurement of Credit Losses on Financial Instruments We adopted the standard on January 1, 2020, and based on the composition of our reinsurance recoverables, investment portfolio and other financial assets, current economic conditions and historical credit loss activity, the adoption of this standard did not have a material impact on our condensed consolidated financial statements and related disclosures. Fair Value Measurements In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement Internal Use Software In August 2018, the FASB issued ASU No. 2018-15, Intangibles—Goodwill and Other—Internal-Use Software Accounting Pronouncements Not Yet Adopted In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting For information regarding other accounting standards that the Company has not yet adopted, refer to our 2019 Form 10-K, filed on March 10, 2020, the section of Note 1 of the notes to the consolidated financial statements entitled “Accounting Pronouncement Not Yet Adopted”. |
Investments
Investments | 6 Months Ended |
Jun. 30, 2020 | |
Investments Debt And Equity Securities [Abstract] | |
Investments | NOTE 2. INVESTMENTS Securities Available-for-Sale The following table summarizes the amortized cost and fair value of securities available-for-sale at June 30, 2020 and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income: June 30, 2020 Cost or Adjusted / Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Debt Securities Available-for-sale (In thousands) U.S. government and agency securities (1) $ 61,801 $ 1,680 $ 2 $ 63,479 States, municipalities and political subdivisions 102,195 5,176 4 107,367 Special revenue 265,565 9,226 49 274,742 Hybrid securities 99 — 4 95 Industrial and miscellaneous 242,301 10,301 8 252,594 Total $ 671,961 $ 26,383 $ 67 $ 698,277 (1) Includes securities at June 30, 2020 with a carrying amount of $21.5 million that were pledged as collateral for the advance agreement entered into with a financial institution in 2018. The Company is permitted to withdraw or exchange any portion of the pledged collateral over the minimum requirement at any time. The Company’s unrealized losses on corporate bonds have not been recognized because the bonds are of high credit quality with investment grade ratings of A or higher, the Company does not intend to sell and it is unlikely the Company will be required to sell the securities prior to their anticipated recovery, and the decline in fair value is deemed due to changes in interest rates and other market conditions. The bond issuers continue to make timely principal and interest payments on the bonds. After taking into account these and other factors previously described, we believe these unrealized losses generally were caused by a decrease in market interest rates since the time the securities were purchased. The following table summarizes the amortized cost and fair value of securities available-for-sale at December 31, 2019 and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income: December 31, 2019 Cost or Adjusted / Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Debt Securities Available-for-sale (In thousands) U.S. government and agency securities (1) $ 53,836 $ 383 $ 28 $ 54,191 States, municipalities and political subdivisions 74,755 1,641 41 76,355 Special revenue 246,791 3,689 254 250,226 Hybrid securities 100 1 — 101 Industrial and miscellaneous 202,307 4,097 21 206,383 Total $ 577,789 $ 9,811 $ 344 $ 587,256 (1) Includes securities at December 31, 2019 with a carrying amount of $20.2 million that were pledged as collateral for the advance agreement entered into with a financial institution in 2018. The Company is permitted to withdraw or exchange any portion of the pledged collateral over the minimum requirement at any time. Proceeds received, and the gross realized gains and losses from sales of available-for-sale securities, for the three and six months ended, June 30, 2020 and 2019 are as follows: Proceeds Gross Realized Gains Gross Realized Losses (In thousands) Three months ended June 30, 2020 $ 39,249 $ 49 $ 87 Three months ended June 30, 2019 $ 35,765 $ 975 $ 140 Proceeds Gross Realized Gains Gross Realized Losses (In thousands) Six months ended June 30, 2020 $ 46,860 $ 135 $ 113 Six months ended June 30, 2019 $ 45,216 $ 968 $ 204 The Company reviews credit losses and the valuation allowance for expected credit losses each quarter. When all or a portion of a debt security is identified as uncollectible and written off, the valuation allowance for expected credit losses is reduced by the same amount. In general, a security is considered uncollectible no later than when all efforts to collect contractual cash flows have been exhausted. The Company considers the following considerations when deeming a security uncollectible: • sufficient information was available to determine the issuer of the security is insolvent; • receipt of notice of filed bankruptcy, and the collectability is expected to be adversely impacted; • issuer has violated multiple debt covenants; • the extent to which the market value of the security has been below its cost or amortized costs; and • receipt of notice indicating that the issuer does not intend to pay the contractual principal and interest. For the three and six months ended June 30, 2020 the Company sold no equity securities nor did it hold any marketable equity securities as of that date. For the three months ended June 30, 2019, the Company received proceeds from the sale of marketable securities of approximately $21.9 million and recorded a gross gain of $1.3 million and a gross loss of $1.1 million from the sale of these securities. For the six months ended June 30, 2019, the Company received proceeds from the sale of its holdings in marketable equity securities of approximately $23.8 million and recorded a gross gain of $2.7 million and a gross loss of $1.4 million from the sale of these securities. As of June 30, 2019, the Company had unrealized holding gains of $292,000 recognized on nonmarketable other investments still held at reporting date. The table below summarizes the Company’s fixed maturity securities at June 30, 2020 by contractual maturity periods. Actual results may differ as issuers may have the right to call or prepay obligations, with or without penalties, prior to the contractual maturity of those obligations. At June 30, 2020 Cost or Amortized Cost Percent of Total Fair Value Percent of Total Maturity dates: (In thousands) (In thousands) Due in one year or less $ 80,565 12 % $ 81,143 12 % Due after one year through five years 242,984 36 % 251,414 36 % Due after five years through ten years 137,887 21 % 147,093 21 % Due after ten years 210,525 31 % 218,627 31 % Total $ 671,961 100 % $ 698,277 100 % The following table summarizes the Company’s net investment income by major investment category for the three and six months ended June 30, 2020 and 2019, respectively: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 (In thousands) (In thousands) Debt securities $ 2,235 $ 3,571 $ 6,397 $ 6,295 Equity securities — 517 — 944 Cash and cash equivalents 607 197 959 938 Other investments 830 241 265 542 Net investment income 3,672 4,526 7,621 8,719 Less: Investment expenses 376 696 655 1,217 Net investment income, less investment expenses $ 3,296 $ 3,830 $ 6,966 $ 7,502 The following tables summarizes debt securities available-for-sale in an unrealized loss position at June 30, 2020, aggregated by major security category and length of time in a continued unrealized loss position (in thousands): Less Than Twelve Months Twelve Months or More June 30, 2020 Number of Securities Gross Unrealized Losses Fair Value Number of Securities Gross Unrealized Losses Fair Value Debt Securities Available-for-sale U.S. government and agency securities 2 $ 1 $ 79 1 $ 1 $ 7 States, municipalities and political subdivisions 3 4 2,471 — — — Special revenue 22 45 14,227 11 4 196 Hybrid securities 1 4 95 — — — Industrial and miscellaneous 15 8 11,122 — — — Total fixed maturity securities 43 $ 62 $ 27,994 12 $ 5 $ 203 The Company evaluates expected credit losses for available-for-sale securities (“AFS”) when fair value is below amortized cost. AFS securities are evaluated for potential credit loss on an individual security level but the evaluation may use assumptions consistent with expectations of credit losses for a group of similar securities. If the Company has the intent to sell or will be required to sell the security before recovery, the entire impairment loss will be recorded through income to net realized gains and losses. If the Company does not have the intent to sell or will not be required to sell the security before recovery, an allowance for credit losses is established and the portion of loss that relates to credit losses is recorded in income to net realized and unrealized gains (losses) and the portion of the loss that relates to the non-credit loss is recorded in Other comprehensive income. At June 30, 2020, the Company did not intend to sell the securities with an unrealized loss position in accumulated other comprehensive income, and it is not likely that it will be required to sell these securities before recovery of their amortized cost basis. Further, the Company did not believe it had a credit event and therefore did not record any credit allowance for securities that were in an unrealized loss position at June 30, 2020. The following tables summarizes debt securities available-for-sale in an unrealized loss position at December 31, 2019, aggregated by major security category and length of time in a continued unrealized loss position (in thousands): Less Than Twelve Months Twelve Months or More December 31, 2019 Number of Securities Gross Unrealized Losses Fair Number of Securities Gross Unrealized Losses Fair Value Debt Securities Available-for-sale U.S. government and agency securities 9 $ 10 $ 1,476 23 $ 18 $ 4,288 States, municipalities and political subdivisions 6 38 7,613 3 3 1,440 Special revenue 62 145 24,862 95 109 13,159 Industrial and miscellaneous 25 13 12,601 16 8 3,202 Total fixed maturity securities 102 $ 206 $ 46,552 137 $ 138 $ 22,089 Other Investments Classified in other investments, the Company has interest in limited partnerships (“LPs”), Partnership Real Estate Investment Trust (REITs) and Limited Liability Companies (“LLCs”) totaling $6.4 million at June 30, 2020 and December 31, 2019. The Company is not the primary beneficiary and does not consolidate these investments. These investments are carried at net asset value, which approximates fair value with changes in fair value recorded in net realized and unrealized gains (losses) on the Company’s consolidated statement of operations and other comprehensive income. Realized gains (losses) on sales of these investments are reported within net realized and unrealized gains (losses) on the Company’s condensed consolidated statement of operations and other comprehensive income . |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 6 Months Ended |
Jun. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | NOTE 3. FAIR VALUE OF FINANCIAL INSTRUMENTS Fair value is determined based on the exchange price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. We are required to use an established hierarchy for fair value measurements based upon the inputs to the valuation and degree to which they are observable or not observable in the market. The three levels in the hierarchy are as follows: • Level 1 – Inputs to the valuation based on quoted prices (unadjusted) for identical assets or liabilities in active markets that are accessible as of the measurement date. • Level 2 – Inputs to the valuation include quoted prices in either markets that are not active, or in active markets for similar assets or liabilities, inputs other than quoted prices that are observable, and inputs that are derived principally from or corroborated by observable market data. • Level 3 – Inputs to the valuation that are unobservable inputs for the asset or liability. The highest priority is assigned Level 1 inputs and the lowest priority to Level 3 inputs. We did not hold any Level 3 assets or liabilities as of June 30, 2020 or December 31, 2019. The carrying value of premium receivables and accounts payable, accrued expense, revolving loans and borrowings under our senior secured credit facility approximate their fair value. The rate at which revolving loans and borrowings under our senior secured credit facility bear interest resets periodically at market interest rates. All of these items are considered Level 1 assets and liabilities. Investments excluded from the fair value hierarchy The Company has interests in LPs, REITs and LLCs. This investment categorization has the potential for higher returns but also the potential for higher degrees of risk, including less than stable rates of returns and may provide less liquidity. These investments are carried at net asset value, as reported by the managers of the funds, and are excluded from the fair value hierarchy. The table below presents the balances of our invested assets measured at fair value on a recurring basis: June 30, 2020 Total Level 1 Level 2 Level 3 Invested Assets: (in thousands) Debt Securities Available-for-sale U.S. government and agency securities $ 63,479 $ 374 $ 63,105 $ — States, municipalities and political subdivisions 107,367 — 107,367 — Special revenue 274,742 — 274,742 — Hybrid securities 95 — 95 — Industrial and miscellaneous 252,594 — 252,594 — Total debt securities 698,277 374 697,903 — Investments reported at NAV (1) 7,973 — — — Total investments $ 706,250 $ 374 $ 697,903 $ — December 31, 2019 Total Level 1 Level 2 Level 3 Invested Assets: (in thousands) Debt Securities Available-for-sale U.S. government and agency securities $ 54,191 $ 366 $ 53,825 $ — States, municipalities and political subdivisions 76,355 — 76,355 — Special revenue 250,226 — 250,226 — Hybrid securities 101 — 101 — Industrial and miscellaneous 206,383 — 206,383 — Total debt securities 587,256 366 586,890 — Investments reported at NAV (1) 7,993 — — — Total investments $ 595,249 $ 366 $ 586,890 $ — (1) Includes $1.6 million and $1.6 million of Federal Home Loan Banks membership shares held by the Company as of June 30, 2020 and December 31, 2019, respectively. Non-recurring fair value measurements Assets and liabilities that are measured at fair value on a non-recurring basis include intangible assets and goodwill which are recognized at fair value during the period in which an acquisition is completed, from updated estimates and assumptions during the measurement period, or when they are considered to be impaired. These non-recurring fair value measurements, primarily for intangible assets acquired, were based on Level 3 unobservable inputs. For the quarters ended June 30, 2020 and 2019, these non-recurring fair value inputs consisted of brand, agent relationships, renewal rights, customer relations, trade names, non-compete and goodwill. To evaluate such assets for a potential impairment, we determine the fair value of the goodwill and intangible assets using a combination of a discounted cash flow approach and market approaches, which contain significant unobservable inputs and therefore are considered a Level 3 fair value measurement. The unobservable inputs in the analysis generally include future cash flow projections and a discount rate. There were no non-recurring fair value adjustments to intangible assets and goodwill during the first two quarters of 2020 and 2019. We record any measurement period adjustments to the fair value of assets acquired and liabilities assumed, with the corresponding offset to goodwill. |
Other Comprehensive Income
Other Comprehensive Income | 6 Months Ended |
Jun. 30, 2020 | |
Comprehensive Income Net Of Tax [Abstract] | |
Other Comprehensive Income | NOTE 4. OTHER COMPREHENSIVE INCOME The following table is a summary of other comprehensive income (loss) and discloses the tax impact of each component of other comprehensive income for the three and six months ended June 30, 2020 and 2019, respectively: For the Three Months Ended June 30, 2020 2019 Pre-tax Tax After-tax Pre-tax Tax After-tax (in thousands) Other comprehensive income Change in unrealized losses on investments, net $ 14,823 $ (3,431 ) $ 11,392 $ 7,068 $ (1,293 ) $ 5,775 Reclassification adjustment of realized losses (gains) included in net income 38 (9 ) 29 59 (11 ) 48 Effect on other comprehensive income $ 14,861 $ (3,440 ) $ 11,421 $ 7,127 $ (1,304 ) $ 5,823 For the Six Months Ended June 30, 2020 2019 Pre-tax Tax After-tax Pre-tax Tax After-tax (in thousands) Other comprehensive income Change in unrealized losses on investments, net $ 16,850 $ (3,900 ) $ 12,950 $ 15,104 $ (3,617 ) $ 11,487 Reclassification adjustment of realized losses (gains) included in net income (22 ) 5 (17 ) 394 (95 ) 299 Effect on other comprehensive income $ 16,828 $ (3,895 ) $ 12,933 $ 15,498 $ (3,712 ) $ 11,786 |
Leases
Leases | 6 Months Ended |
Jun. 30, 2020 | |
Leases [Abstract] | |
Leases | NOTE 5. LEASES The Company has entered into operating and financing leases primarily for real estate and vehicles. The Company will determine whether an arrangement is a lease at inception of the agreement. The operating leases have terms of one to ten years, and often include one or more options to renew. These renewal terms can extend the lease term from two to ten years, and are included in the lease term when it is reasonably certain that the Company will exercise the option. The Company considers these options in determining the lease term used in establishing our right-of-use assets and lease obligations. The Company lease agreements do not contain any material residual value guarantees or material restrictive covenants. Because the rate implicit in each operating lease is not readily determinable, the Company uses its incremental borrowing rate to determine present value of the lease payments. The Company used the implicit rates within the finance leases. Components of the Company’s lease costs for the three and six months ended June 30, 2020 and 2019 are as follows (in thousands): Three Months Ended June 30, 2020 Three Months Ended June 30, 2019 Amortization of ROU assets - Finance leases $ 21 $ 18 Interest on lease liabilities - Finance leases 5 7 Variable lease cost (cost excluded from lease payments) 125 111 Operating lease cost (cost resulting from lease payments) 338 328 Total lease cost $ 489 $ 464 Six Months Ended June 30, 2020 Six Months Ended June 30, 2019 Amortization of ROU assets - Finance leases $ 43 $ 38 Interest on lease liabilities - Finance leases 11 14 Variable lease cost (cost excluded from lease payments) 256 221 Operating lease cost (cost resulting from lease payments) 685 588 Total lease cost $ 995 $ 861 Supplemental cash flow information and non-cash activity related to our operating and financing leases as of June 30, 2020 and 2019 are as follows (in thousands): June 30, 2020 June 30, 2019 Finance lease - Operating cash flows $ 11 $ 16 Finance lease - Financing cash flows $ 36 $ 47 Operating lease - Operating cash flows (fixed payments) $ 720 $ 341 Operating lease - Operating cash flows (liability reduction) $ 507 $ 276 Supplemental balance sheet information related to our operating and financing leases as of June 30, 2020 are as follows (in thousands): Balance Sheet Classification June 30, 2020 Right-of-use assets - operating Other assets $ 6,377 Right-of-use assets - finance Other assets $ 259 Lease Liability (1) Accounts payable and other liabilities $ (8,083 ) Lease Liability - finance Accounts payable and other liabilities $ (288 ) (1) Includes $1.3 million in lease incentives received in the first quarter of 2019. Weighted-average remaining lease term and discount rate for our operating and financing leases as of June 30, 2020 are as follows: June 30, 2020 Weighted average lease term - Finance leases 3.18 yrs. Weighted average lease term - Operating leases 7.41 yrs. Weighted average discount rate - Finance leases 7.1 % Weighted average discount rate - Operating leases 5.3 % Maturities of lease liabilities by fiscal year for our operating and financing leases as of June 30, 2020 are as follows (in thousands): June 30, 2020 2020 remaining $ 765 2021 1,548 2022 1,566 2023 1,487 2024 1,112 Thereafter 3,694 Total lease payments 10,172 Less: imputed interest (1,801 ) Present value of lease liabilities $ 8,371 |
Property and Equipment, Net
Property and Equipment, Net | 6 Months Ended |
Jun. 30, 2020 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment, Net | NOTE 6. PROPERTY AND EQUIPMENT, NET Property and equipment, net consisted of the following at June 30, 2020 and December 31, 2019: June 30, 2020 December 31, 2019 (In thousands) Land $ 2,582 $ 2,582 Building 11,390 11,390 Computer hardware and software 5,725 5,712 Office furniture and equipment 2,007 2,007 Tenant and leasehold improvements 8,133 8,105 Vehicle fleet 850 789 Total, at cost 30,687 30,585 Less: accumulated depreciation and amortization (10,689 ) (9,832 ) Property and equipment, net $ 19,998 $ 20,753 Depreciation and amortization expense for property and equipment was $425,000 and $1.0 million for the three months ended June 30, 2020 and 2019, respectively and $857,000 and $1.6 million for the six months ended June 30, 2020 and 2019, respectively. The Company’s real estate consists of 15 acres of land and five buildings with a gross area of 229,000 square feet and a parking garage. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 6 Months Ended |
Jun. 30, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | NOTE 7. GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill and Intangible Assets At June 30, 2020 and December 31, 2019 goodwill was $152.5 million and intangible assets were $65.5 million and $68.6 million, respectively. The Company has determined the useful life of the other intangible assets to range between 2.5-15 years. The Company has recorded $1.3 million relating to insurance licenses and has classified the licenses as an indefinite lived intangible asset which is subject to annual impairment testing concurrent with goodwill. Goodwill (in thousands) Balance as of December 31, 2019 $ 152,459 Goodwill acquired — Impairment — Balance as of June 30, 2020 $ 152,459 Our annual goodwill impairment analysis was performed as of October 1, 2019. Management had determined that an impairment review was appropriate for the first quarter of 2020 given the potential impact of the COVID-19 pandemic. We qualitatively assessed whether it was more likely than not that the goodwill and indefinite-lived assets were impaired as of March 31, 2020. For the second quarter of 2020 there had been no change in the Company’s qualitative assessment results for its goodwill assessment, and based on that assessment management determined that our goodwill and indefinite-lived assets are not impaired for the period ended June 30, 2020. Other Intangible Assets Our intangible assets consist of brand, agent relationships, renewal rights, customer relations, trade names, non-competes and insurance licenses. Finite-lived intangibles assets are amortized over their useful lives from 2.5 to fifteen years. Amortization expense of our intangible assets was $1.6 million and $2.1 million for the three months ended June 30, 2020 and 2019, respectively, and $3.2 million and $4.2 million for the six months ended June 30, 2020 and 2019, respectively. No impairment in the value of amortizing or non-amortizing intangible assets was recognized during the three months ended June 30, 2020 or 2019. Estimated annual pretax amortization of intangible assets for each of the next five years and thereafter is as follows (in thousands): Year Amount (1) 2020 - remaining $ 3,183 2021 $ 6,351 2022 $ 6,351 2023 $ 6,351 2024 $ 6,351 Thereafter $ 35,559 Total $ 64,146 (1) Excludes insurance licenses valued at $1.3 million and classified as an indefinite lived intangible which is subject to annual impairment testing and not amortized. |
Other Assets
Other Assets | 6 Months Ended |
Jun. 30, 2020 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |
Other Assets | NOTE 8. OTHER ASSETS The following table summarizes the Company’s other assets for the periods indicated: Description June 30, 2020 December 31, 2019 (In thousands) Other amounts receivable 8,876 1,185 State underwriting pooling & assoc. 4,213 3,165 Prepaid expense 4,057 3,999 Right to use assets 6,636 6,645 Other assets 306 1,328 Premium tax 4,716 1,788 Total other assets $ 28,804 $ 18,110 Recorded in other amounts receivable are two Secured Promissory Notes (“Notes”) that a single debtor made in January 2020 in favor of the Company, in the amount of $3.75 million each. The Notes mature on February 1, 2023 and bear an 8% interest rate per annum, with principal payments in equal installments of $300,000 due on the first day of each month commencing on June 1, 2021. Interest payments commenced on March 1, 2020. A Security Agreement that collateralizes the Notes was entered into at the time of issuance. The debtor has the right to prepay the note in part or whole after the 27 th |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | NOTE 9. EARNINGS PER SHARE The following table sets forth the computation of basic and diluted earnings per share (“EPS”) for the periods indicated. Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Basic earnings per share: Net income attributable to common stockholders (000's) $ 4,132 $ 721 $ 11,752 $ 7,685 Weighted average shares outstanding 27,876,801 29,346,234 28,212,735 29,442,363 Basic earnings per share: $ 0.15 $ 0.02 $ 0.42 $ 0.26 Diluted earnings per share: Net income attributable to common stockholders (000's) $ 4,132 $ 721 $ 11,752 $ 7,685 Weighted average shares outstanding 27,876,801 29,346,234 28,212,735 29,442,363 Weighted average dilutive shares 36,895 6,562 18,539 5,305 Total weighted average dilutive shares 27,913,696 29,352,796 28,231,273 29,447,668 Diluted earnings per share: $ 0.15 $ 0.02 $ 0.42 $ 0.26 |
Deferred Reinsurance Ceding Com
Deferred Reinsurance Ceding Commission | 6 Months Ended |
Jun. 30, 2020 | |
Insurance [Abstract] | |
Deferred Reinsurance Ceding Commission | NOTE 10. DEFERRED REINSURANCE CEDING COMMISSION The Company defers reinsurance ceding commission income, which is amortized over the effective period of the related insurance policies. For the quarter ended June 30, 2020 and 2019, the Company allocated ceding commission income of $11.3 million and $12.1 million to policy acquisition costs and $3.6 million and $4.0 million to general and administrative expense, respectively. For the six months ended June 30, 2020 and 2019, the Company allocated ceding commission income of $21.7 million and $25.0 million to policy acquisition costs and $7.1 million and $8.3 million to general and administrative expense, respectively. The table below depicts the activity with regard to deferred reinsurance ceding commission during the three and six months ended June 30, 2020 and 2019. Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 (In thousands) Beginning balance of deferred ceding commission income $ 34,380 $ 40,474 $ 37,464 $ 44,996 Ceding commission deferred 15,074 10,389 25,919 23,036 Less: ceding commission earned (14,892 ) (16,158 ) (28,821 ) (33,327 ) Ending balance of deferred ceding commission income $ 34,562 $ 34,705 $ 34,562 $ 34,705 |
Deferred Policy Acquisition Cos
Deferred Policy Acquisition Costs | 6 Months Ended |
Jun. 30, 2020 | |
Insurance [Abstract] | |
Deferred Policy Acquisition Costs | NOTE 11. DEFERRED POLICY ACQUISITION COSTS The Company incurs incremental policy acquisition costs that vary with, and are directly related to, the production of new business. Policy acquisition costs consist of the following four items: (i) commissions paid to outside agents at the time of policy issuance; (ii) policy administration fees paid to a third-party administrator at the time of policy issuance; (iii) premium taxes; and (iv) inspection fees. The Company capitalizes incremental policy acquisition costs that are directly related to the successful efforts of acquiring new or renewed insurance contracts to the extent recoverable, then the Company amortizes those costs over the contract period of the related policy. The Company defers the incurred incremental policy acquisition costs, commonly referred to as deferred policy acquisition costs (“DPAC”), which are amortized over the effective period of the related insurance policies. The Company anticipates that its DPAC costs will be fully recoverable in the near term. The table below depicts the activity with regard to DPAC during the three and six months ended June 30, 2020 and 2019. Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 (In thousands) Beginning Balance $ 74,895 $ 69,883 $ 77,211 $ 73,055 Policy acquisition costs deferred 48,173 35,271 86,304 73,901 Amortization (41,478 ) (31,090 ) (81,925 ) (72,892 ) Ending Balance $ 81,590 $ 74,064 $ 81,590 $ 74,064 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 12. INCOME TAXES For the three months ended June 30, 2020 and 2019, the Company recorded $1.1 million and $0.4 million, respectively, of income tax expense which corresponds to effective tax rates of 21.2% and 33.8%, respectively. For the six months ended June 30, 2020 and 2019, the Company recorded $4.3 million and $2.7 million, respectively, of income tax expense which corresponds to effective tax rates of 26.7% and 26.3%, respectively. Effective tax rates are dependent upon components of pre-tax earnings and the related tax effects. The effective tax rates for calendar years 2020 and 2019 were affected by various permanent tax differences, predominately disallowed executive compensation deductions which were further limited in 2018 and future years upon the enactment of H.R.1, commonly referred to as the Tax Cuts and Jobs Act (“Tax Act”). Additionally, the state effective income tax rate fluctuated as a result of changes in the geographic dispersion of our business and a state income tax refund received in the second quarter. The effective tax rate can fluctuate throughout the year as estimates used in the tax provision for each quarter are updated as more information becomes available throughout the year. The table below summarizes the significant components of our net deferred tax liability for the periods indicated: June 30, 2020 December 31, 2019 Deferred tax assets: (In thousands) Unearned premiums $ 8,274 $ 12,585 Unearned commission 8,000 8,671 Tax-related discount on loss reserve 2,668 2,716 Stock-based compensation 527 297 Accrued expenses 1,987 757 Leases 334 331 Other 1,908 1,890 Total deferred tax asset 23,698 27,247 Deferred tax liabilities: Deferred acquisition costs 18,885 17,871 Prepaid expenses 268 153 Unrealized gains 6,090 2,195 Property and equipment 1,176 1,029 Note discount 404 478 Basis in purchased investments 76 100 Basis in purchased intangibles 16,286 16,977 Other 1,470 1,067 Total deferred tax liabilities 44,655 39,870 Net deferred tax liability $ (20,957 ) $ (12,623 ) In April 2019, the Company was notified by the tax authority that the federal income tax returns for the years 2015, 2016 and 2017 will be examined. The Company does not believe the examination results will have an adverse impact on the condensed consolidated financial statements. At June 30, 2020 and December 31, 2019, we had no significant uncertain tax positions or unrecognized tax benefits that, if recognized, would impact the effective income tax rate. The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was enacted on March 27, 2020 in the United States. The CARES Act and related notices include several significant provisions, including delaying certain payroll tax payments, mandatory transition tax payments under the TCJ Act, and estimated income tax payments that we are deferring to future periods. We do not currently expect the CARES Act to have a material impact on our financial results, including on our annual estimated effective tax rate or on our liquidity. We will continue to monitor and assess the impact the CARES Act and similar legislation may have on our business and financial results. |
Reinsurance
Reinsurance | 6 Months Ended |
Jun. 30, 2020 | |
Insurance [Abstract] | |
Reinsurance | NOTE 13. REINSURANCE Overview The Company’s reinsurance program is designed, utilizing the Company’s risk management methodology, to address its exposure to catastrophes or large non-catastrophic losses. The Company’s program provides reinsurance protection for catastrophes including hurricanes, tropical storms, tornadoes and winter storms. The Company’s reinsurance agreements are part of its catastrophe management strategy, which is intended to provide its stockholders an acceptable return on the risks assumed in its property business, and to reduce variability of earnings, while providing protection to the Company’s policyholders. In order to limit our potential exposure to catastrophic events, we purchase significant reinsurance from third party reinsurers. The catastrophe reinsurance may be on an excess of loss or quota share basis. We also purchase reinsurance for non-catastrophe losses on a quota share, per risk or facultative basis. Purchasing a sufficient amount of reinsurance to cover catastrophic losses from single or multiple events or significant non-catastrophe losses is an important part of our risk strategy, and premiums ceded to reinsurers is one of our largest costs. Reinsurance involves transferring, or “ceding”, a portion of the risk exposure on policies we write to another insurer, known as a reinsurer. To the extent that our reinsurers are unable to meet the obligations they assume under our reinsurance agreements, we remain liable for the entire insured loss. Our reinsurance agreements are prospective contracts. We record an asset, prepaid reinsurance premiums, and a liability, reinsurance payable, for the entire contract amount upon commencement of our new reinsurance agreements. We amortize our catastrophe reinsurance premiums over the 12-month contract period, which generally begins on June 1, on a straight-line basis. Our quota share reinsurance is amortized over the 12-month contract period and is currently on a calendar basis. In the event that we incur losses and loss adjustment expenses recoverable under our reinsurance program, we record amounts recoverable from our reinsurers on paid losses plus an estimate of amounts recoverable on unpaid losses. The estimate of amounts recoverable on unpaid losses is a function of our liability for unpaid losses associated with the reinsured policies; therefore, the amount changes in conjunction with any changes to our estimate of unpaid losses. As a result, a reasonable possibility exists that an estimated recovery may change significantly in the near term from the amounts included in our consolidated financial statements. Our insurance regulators and rating agency require all insurance companies, like us, to have a certain amount of capital and reinsurance coverage in order to cover losses and loss adjustment expenses upon the occurrence of a catastrophic event. Our 2020-2021 reinsurance program provides reinsurance in excess of our state regulator and rating agency requirements. The nature, severity and location of the event giving rise to such a probable maximum loss differs for each insurer depending on the insurer’s portfolio of insured risks, including, among other things, the geographic concentration of insured value within such portfolio. As a result, a particular catastrophic event could be a one-in-100-year loss event for one insurance company while having a greater or lesser probability of occurrence for another insurance company. We also purchase reinsurance coverage to protect against the potential for multiple catastrophic events occurring in the same year. We share portions of our reinsurance program coverage among our insurance company affiliates. Catastrophe Excess of Loss Reinsurance Effective June 1, 2020, we entered into catastrophe excess of loss reinsurance agreements covering Heritage Property & Casualty Insurance Company (“Heritage P&C”), Zephyr Insurance Company (“Zephyr”) and Narragansett Bay Insurance Company (“NBIC”). The catastrophe reinsurance programs are allocated amongst traditional reinsurers, the Florida Hurricane Catastrophe Fund (“FHCF”) and Osprey Re Ltd (“Osprey”), our captive reinsurer. The FHCF covers Florida risks only and we elected to participate at 90%. Our third-party reinsurers are either rated “A-” or higher by A.M. Best or S&P or are fully collateralized, to reduce credit risk. The reinsurance program, which is segmented into layers of coverage, protects the Company for excess property catastrophe losses and loss adjustment expenses. The 2020-2021 reinsurance program provides first event coverage up to $1.35 billion for Heritage P&C, first event coverage up to $965.0 million for NBIC, and first event coverage up to $690.0 million for Zephyr. Our first event retention in a 1 in 100 year event would include retention for the respective insurance company as well as any retention by Osprey. The first event maximum retention up to a 1 in 100 year event for each insurance company subsidiary is as follows: Heritage P&C – $20.0 million; Zephyr – $20.0 million; NBIC – $13.3 million. In a 1 to 100 year event and including Osprey’s retention, the range of loss depending upon the geographic region affected would be between an additional $22.1 million to $41.8 million above the amounts noted for the insurance company retentions. The majority of our program was placed on a cascading basis which provides greater horizontal protection in a multiple small events scenario and features additional coverage enhancements. We are responsible for all losses and loss adjustment expenses in excess of our reinsurance program. For second or subsequent catastrophic events, our total available coverage depends on the magnitude of the first event, as we may have coverage remaining from layers that were not previously fully exhausted. An aggregate of $2.6 billion of limit purchased in 2020 includes reinstatement through the purchase of reinstatement premium protection. In total, we have purchased $2.6 billion of potential reinsurance coverage, including our retention, for multiple catastrophic events. The amount of coverage, however, will be subject to the severity and frequency of such events. The Company's estimated net cost for the 2020-2021 catastrophe reinsurance programs is approximately $272.1 million. Gross Quota Share Reinsurance NBIC did not enter into a gross quota share reinsurance program for the contract term beginning June 1, 2019, nor was a gross quota share reinsurance program entered into in 2020. For the 2018 contract term, NBIC purchased an 8% gross quota share reinsurance treaty effective June 1, 2018 through May 31, 2019 which provided ground up loss recoveries of up to $1.0 billion. Net Quota Share Reinsurance Our Net Quota Share coverage is proportional reinsurance, which applies to business underwritten by NBIC, for which certain of our other reinsurance (property catastrophe excess of loss and the second layer of the general excess of loss) inures to the quota share program. An occurrence limit of $20.0 million for catastrophe losses is in effect on the quota share program, subject to certain aggregate loss limits that vary by reinsurer. The amount and rate of ceding commissions slide, within a prescribed minimum and maximum, depending on loss performance. The Net Quota Share program was renewed on December 31, 2019 ceding 56% of the net premiums and losses and 5% of the prior year quota share is in run off. Aggregate Coverage $976.0 million of limit is structured on an aggregate basis (Top and Aggregate, Layer 1, Layer 2, Layer 3, Layer 4, Multi-Zonal and northeast only). To the extent that this coverage is not fully exhausted in the first catastrophic event, it provides coverage commencing at its reduced retention for second and subsequent events where underlying coverage has been previously exhausted. The Company purchased reinstatement premium protection for $621.0 million of this coverage, which can be reinstated one time. Layers (with exception to FHCF) are “net” of a $40.0 million attachment point. Layers inure to the subsequent layers if the aggregate limit of the preceding layer(s) is exhausted, and a portion of the subsequent layer cascades down in its place. Additionally, for business underwritten by NBIC, we placed 42.5% of an aggregate contract to cover, all catastrophe losses excluding named storms from December 1, 2019 to March 31, 2020. The limit on the contract was $20.0 million, with a retention of $20.0 million and franchise deductible of $1.0 million. This program was not replaced. We placed 100% of an occurrence contract for our business underwritten by NBIC which covers all catastrophe losses excluding named storms, on December 31, 2019, expiring December 31, 2020. The limit on the contract is $20.0 million with a retention of $20.0 million and has one reinstatement available. Per Risk Coverage For losses arising from business underwritten by Heritage P&C and losses arising from commercial residential business underwritten by NBIC, excluding losses from named storms, the Company purchased property per risk coverage for losses and loss adjustment expenses in excess of $1.0 million per claim. The limit recovered for an individual loss is $9.0 million and total limit for all losses is $27.0 million. There are two reinstatements available with additional premium due based on the amount of the layer exhausted. For losses arising from commercial residential business underwritten by NBIC, the Company purchased property per risk coverage for losses and loss adjustments expenses in excess of $750,000 per claim. The limit recovered for an individual loss is $250,000 and total limit for all losses is $750,000. There are two reinstatements available with additional premium due based on the amount of the layer exhausted. In addition, the Company purchased facultative reinsurance for losses in excess of $10.0 million for any properties it insured where the total insured value exceeded $10.0 million. This coverage applies to losses arising from business underwritten by Heritage P&C and losses arising commercial residential business underwritten by NBIC, excluding losses from named storms. General Excess of Loss Our general excess of loss reinsurance protects business underwritten by NBIC and Zephyr multi-peril policies from single risk losses. The coverage is in two layers in excess of our retention of the first $400,000 of loss. The first layer is $350,000 excess $400,000 for property and casualty and the second layer for property is $2.75 million excess $750,000. The second layer for casualty is $1.25 million excess $750,000. This coverage was in place from July 1, 2019 through June 30, 2020. In addition, we purchased facultative reinsurance for losses underwritten by NBIC in excess of $3.5 million. Effect of Reinsurance The Company’s reinsurance arrangements had the following effect on certain items in the condensed consolidated statement of income for the three and six months ended June 30, 2020 and 2019: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 (In thousands) (In thousands) Premium written: Direct $ 290,432 $ 254,840 $ 519,534 $ 465,188 Ceded (327,962 ) (312,600 ) (358,599 ) (359,442 ) Net $ (37,530 ) $ (57,760 ) $ 160,935 $ 105,746 Premiums earned: Direct $ 241,792 $ 229,958 $ 476,508 $ 458,548 Ceded (112,735 ) (115,875 ) (221,445 ) (234,774 ) Net $ 129,057 $ 114,083 $ 255,063 $ 223,774 Loss and Loss Adjustment Expenses Direct $ 139,311 $ 162,390 $ 246,676 $ 274,566 Ceded (60,442 ) (88,091 ) (99,626 ) (138,128 ) Net $ 78,869 $ 74,299 $ 147,050 $ 136,438 |
Reserve For Unpaid Losses And A
Reserve For Unpaid Losses And Adjustment Expenses | 6 Months Ended |
Jun. 30, 2020 | |
Insurance [Abstract] | |
Reserve for Unpaid Losses And Loss Adjustment Expenses | NOTE 14. RESERVE FOR UNPAID LOSSES AND LOSS ADJUSTMENT EXPENSES The Company determines the reserve for unpaid losses and loss adjustment expenses (“LAE”) on an individual-case basis for all incidents reported. The liability also includes amounts which are commonly referred to as incurred but not reported, or “IBNR”, claims as of the balance sheet date. The table below summarizes the activity related to the Company’s reserve for unpaid losses and LAE: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 (In thousands) Balance, beginning of period $ 607,177 $ 404,484 $ 613,533 $ 432,359 Less: reinsurance recoverable on unpaid losses 387,637 214,471 393,630 250,507 Net balance, beginning of period 219,540 190,013 219,903 181,852 Incurred related to: Current year 83,822 75,623 156,153 138,348 Prior years (4,953 ) (1,324 ) (9,103 ) (1,910 ) Total incurred 78,869 74,299 147,050 136,438 Paid related to: Current year 55,372 34,793 76,608 43,155 Prior years 26,689 22,130 73,997 67,746 Total paid 82,061 56,923 150,605 110,901 Net balance, end of period 216,348 207,389 216,348 207,389 Plus: reinsurance recoverable on unpaid losses 404,370 223,023 404,370 223,023 Balance, end of period $ 620,718 $ 430,412 $ 620,718 $ 430,412 As of June 30, 2020, the Company reported $216.3 million in unpaid losses and loss adjustment expenses, net of reinsurance which included $160.2 million attributable to IBNR net of reinsurance recoverable, or 74.1% of net reserves for unpaid losses and loss adjustment expenses. |
Long-Term Debt
Long-Term Debt | 6 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | NOTE 15. LONG-TERM DEBT Convertible Senior Notes In August 2017 and September 2017, the Company issued in aggregate $136.8 million of 5.875% Convertible Senior Notes (“Convertible Notes”) maturing on August 1, 2037, unless earlier repurchased, redeemed or converted. Interest is payable semi-annually in arrears, on February 1, and August 1 of each year, commencing in 2018. As of June 30, 2020, the Company had $21.7 million of the Convertible Notes outstanding, net of issuance and debt discount costs in aggregate of approximately, $1.7 million. For the six months ended June 30, 2020 and 2019, the Company made in aggregate interest payments of approximately $1.4 million and $1.5 million respectively on the Convertible Notes. Debt Extinguishment On February 19, 2019, the Company reacquired $5.8 million of its outstanding Convertible Notes for approximately $2.9 million, which was paid in cash and the issuance of 285,201 shares of the Company’s common stock valued at $4.2 million. The repurchase resulted in a $48,000 non-operating loss. Senior Secured Credit Facility In December 2018, the Company entered into a five-year Term Loan Facility: The principal amount of the Term Loan Facility amortizes in quarterly installments, beginning with the close of the fiscal quarter ending March 31, 2019, in an amount equal to $1.9 million per quarter, with the remaining balance payable at maturity. As of December 31, 2019, there was $69.4 million in aggregate principal outstanding on the Term Loan Facility. The December 31, 2019 quarterly principal payment in the amount of $1.9 million was processed by the lender on January 2, 2020. As of June 30, 2020, the balance of the term loan was $65.6 million. For the six months ended June 30, 2020 and 2019, the Company made interest payments of approximately $1.6 million and $1.8 million on the term loan, respectively. The June 30, 2020 quarterly principal payment in the amount of $1.9 million was processed by the lender on July 1, 2020. Revolving Credit Facility : The Revolving Credit Facility allows for borrowings of up to $50.0 million inclusive of a $5.0 million sublimit for the issuance of letters of credit and a $10.0 million sublimit for swingline loans. As of June 30, 2020, and December 31, 2019, the Company had $10.0 million of borrowings and no letters of credit outstanding under the Revolving Credit Facility. For the six months ended June 30, 2020 and 2019, the Company made interest payments of $331,928 and $350,729 under the revolving credit facility, respectively. On April 27, 2020, the Company amended its Credit Agreement by entering into the Second Amendment to Credit Agreement (the “Second Amendment”) with the lenders from time to time party to the Credit Agreement, and Regions Bank, as administrative agent and collateral agent. The Second Amendment modified the negative covenants in the Credit Agreement to permit the Company to make acquisitions and investments if, after giving effect to the acquisition or investment, either (1) the Company has an aggregate of $25.0 million in cash and availability under the revolving credit facility or (2) the consolidated leverage ratio under the Credit Agreement is at least a quarter turn less than the required ratio for the trailing four quarters. The amendment gives the Company more flexibility to make acquisitions and investments in the future. All other material terms of the Credit Agreement remain unchanged. On June 1, 2020, the Company amended the Credit Agreement by entering into the Third Amendment to Credit Agreement (the “Third Amendment”) with the lenders from time to time party to the Credit Agreement, and Regions Bank, as administrative agent and collateral agent. The Third Amendment modified the Credit Agreement to increase the letter of credit sublimit from $5 million to $40 million and to make related modifications to certain of the negative covenants in the Credit Agreement. At June 30, 2020, the Company’s effective interest rate for the Term Loan Facility was 4.10% and 4.36% for the Revolving Credit Facility, respectively. The Company monitors the rates prior to the reset date which allows it to establish if the payment is monthly or quarterly based on the most beneficial rate used to calculate the interest payment. Mortgage Loan In October 2017, the Company and its subsidiary, Skye Lane Properties LLC, jointly obtained a commercial real estate mortgage loan in the amount of $12.7 million, bearing interest of 4.95% per annum and maturing on October 30, 2027. On October 30, 2022, the interest rate shall adjust to an interest rate equal to the annualized interest rate of the United States 5-year Treasury Notes as reported by Federal Reserve on a weekly average basis plus 3.10%. The Company makes monthly principal and interest payments towards the loan. For each of the respective six month periods ended June 30, 2020 and 2019, the Company made principal and interest payments of approximately $446,000 on the mortgage loan. FHLB Loan Agreements In December 2018, a subsidiary of the Company received a 3.094% fixed interest rate cash loan of $19.2 million from the Federal Home Loan Bank (“FHLB”) Atlanta. In connection with the loan agreement, the subsidiary became a member of FHLB. Membership in the FHLB required an investment in FHLB’s common stock which was purchased in December 2018 and valued at $1.4 million. Additionally, the transaction required the acquired FHLB common stock and certain other investments to be pledged as collateral. For the six months ended June 30, 2020, the fair value of the collateralized securities was $19.4 million and the equity investment in FHLB common stock was $1.4 million. For the six months ended June 30, 2020 and 2019, the Company made quarterly interest payments as per the terms of the loan agreement of $301,975 and $300,325, respectively. As of June 30, 2020, and December 31, 2019, the Company also holds common stock from FHLB Des Moines, and FHLB Boston valued at $146,300 and $76,600 The following table summarizes the Company’s debt and credit facilities as of June 30, 2020 and December 31, 2019: June 30, 2020 December 31, 2019 (in thousands) Convertible debt $ 23,413 $ 23,413 Mortgage loan 11,974 12,117 Term loan facility 65,625 69,375 Revolving credit facility 10,000 10,000 FHLB loan agreement 19,200 19,200 Total principal amount $ 130,212 $ 134,105 Less: unamortized discount and issuance costs $ 4,156 $ 4,857 Total long-term debt $ 126,056 $ 129,248 As of the date of this report, we were in compliance with the applicable terms of all our covenants and other requirements under the Credit Agreement, Convertible Notes indenture, cash borrowings and other loans. Our ability to secure future debt financing depends, in part, on our ability to remain in such compliance. Provided there is no default or an event of default, we are permitted to payout dividends in an aggregate amount not to exceed $10.0 million in any fiscal year. The schedule of principal payments on long-term debt as of June 30, 2020 is as follows: Year Amount (In thousands) 2020 remaining $ 5,772 2021 7,806 2022 7,822 2023 74,539 2024 354 Thereafter 33,919 Total $ 130,212 |
Accounts Payable and Other Liab
Accounts Payable and Other Liabilities | 6 Months Ended |
Jun. 30, 2020 | |
Other Liabilities Disclosure [Abstract] | |
Accounts Payable and Other Liabilities | NOTE 16. ACCOUNTS PAYABLE AND OTHER LIABILITIES Accounts payable and other liabilities consist of the following as of June 30, 2020 and December 31, 2019: Description June 30, 2020 December 31, 2019 (In thousands) Deferred ceding commission $ 34,562 $ 37,464 Accounts payable and other payables 7,767 7,225 Lease obligations 8,371 8,369 Accrued interest and issuance costs 829 1,052 Accrued dividends 1,693 1,750 Other liabilities 183 387 Commission payables 14,708 14,798 Total other liabilities $ 68,113 $ 71,045 |
Statutory Accounting and Regula
Statutory Accounting and Regulations | 6 Months Ended |
Jun. 30, 2020 | |
Insurance [Abstract] | |
Statutory Accounting and Regulations | NOTE 17. STATUTORY ACCOUNTING AND REGULATIONS State laws and regulations, as well as national regulatory agency requirements, govern the operations of all insurers such as our insurance subsidiaries. The various laws and regulations require that insurers maintain minimum amounts of statutory surplus and risk-based capital, restrict insurers’ ability to pay dividends, restrict the allowable investment types and investment mixes, and subject the Company’s insurers to assessments. The Company’s insurance subsidiaries Heritage P&C, NBIC, Zephyr, and PIC must maintain capital and surplus ratios or balances as determined by the regulatory authority of the states in which they are domiciled. Heritage P&C is required to maintain capital and surplus equal to the greater of $15 million or 10% of their respective liabilities. Zephyr is required to maintain a deposit of $750,000 in a federally insured financial institution. NBIC is required to maintain capital and surplus of $3.0 million. The combined statutory surplus for Heritage P&C, Zephyr, NBIC and PIC was $338.7 million at June 30, 2020 and $351.8 million at December 31, 2019. State law also requires the Company’s insurance subsidiaries to adhere to prescribed premium-to-capital surplus ratios, and risk-based capital requirements with which the Company is in compliance. At June 30, 2020, our insurance subsidiaries met the financial and regulatory requirements of each of the states in which they conduct business. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 18. COMMITMENTS AND CONTINGENCIES The Company is involved in claims-related legal actions arising in the ordinary course of business. The Company accrues amounts resulting from claims-related legal actions in unpaid losses and loss adjustment expenses during the period that it determines an unfavorable outcome becomes probable and it can estimate the amounts. Management makes revisions to its estimates based on its analysis of subsequent information that the Company receives regarding various factors, including: (i) per claim information; (ii) company and industry historical loss experience; (iii) judicial decisions and legal developments in the awarding of damages; and (iv) trends in general economic conditions, including the effects of inflation. |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | NOTE 19. RELATED PARTY TRANSACTIONS The Company has been party to various related party transactions involving certain of its officers, directors and significant stockholders as set forth below. The Company has entered into each of these arrangements without obligation to continue its effect in the future and the associated expense was immaterial to its results of operations or financial position as of June 30, 2020 and 2019. • In January 2017, the Company entered into a consulting agreement with Mrs. Shannon Lucas, the wife of the Chairman and CEO, in which she agreed to provide consulting services related to the Company’s catastrophe reinsurance and risk management program at a rate of $400 per hour. In 2019, Ms. Lucas received total cash compensation of approximately $344,400. The consulting agreement has no specific term and either party may terminate the agreement upon providing written notice. Additionally, she serves as a director of our subsidiaries Heritage Property & Casualty Insurance Company (“HPCI”) and NBIC. Ms. Lucas’ annual compensation for her role as a director is $150,000. For the three and six months ended June 30, 2020 and 2019, the Company paid consulting fees to Ms. Lucas of approximately $93,000 and $71,000, respectively and $117,000 and $173,000, respectively. • In July 2019, the Board of Directors appointed Mark Berset to the Board of Directors of the Company. Berset is also the Chief Executive Officer of Comegys Insurance Agency, Inc. (“Comegys”), an independent insurance agency that writes policies for our insurance company affiliates. The Company pays commission to Comegys based upon standard industry rates consistent with those provided to the Company’s other insurance agencies. There are no arrangements or understandings between Mr. Berset and any other persons with respect to his appointment as a director. For the three and six months ended June 30, 2020 and 2019, the Company paid agency commission to Comegys of approximately $375,000 and $325,000 and $546,000 and $336,000, respectively. |
Employee Benefit Plans
Employee Benefit Plans | 6 Months Ended |
Jun. 30, 2020 | |
Compensation And Retirement Disclosure [Abstract] | |
Employee Benefit Plans | NOTE 20. EMPLOYEE BENEFIT PLANS The Company provides a 401(k) plan for substantially all employees. The Company provides a matching contribution of 100% on the first 3% of employees’ contribution and 50% on the next 2% of the employees’ contribution to the plan. The maximum match is 4%. For the three and six months ended June 30, 2020 and 2019, the contributions made to the plan on behalf of the participating employees were approximately $293,182 and $632,500 and $292,500 and $548,200, respectively. The Company provides its employees with a partially self-insured healthcare plan and benefits. For the three months ended June 30, 2020 and 2019, incurred medical premium costs amounted to an aggregate of $1.1 million and $958,700, respectively. For the six months ended June 30, 2020 and 2019, incurred medical premium costs amounted to an aggregate of $2.0 million and $1.8 million, respectively. An additional liability of approximately $1.4 million is recorded for unpaid claims as of June 30, 2020. A stop loss reinsurance policy caps the maximum loss that could be incurred by the Company under the self-insured plan. The Company’s stop loss coverage per employee is $150,000 for which any excess cost would be covered by the reinsurer subject to an aggregate limit for losses in excess of $1.5 million which would provide up to $1.0 million of coverage. Any excess of the coverage limits would be borne by the Company. The aggregate stop loss commences once our expenses exceed 125% of the annual aggregate expected claims. |
Equity
Equity | 6 Months Ended |
Jun. 30, 2020 | |
Equity [Abstract] | |
Equity | NOTE 21. EQUITY The total amount of authorized capital stock consists of 50,000,000 shares of common stock and 5,000,000 shares of preferred stock. As of June 30, 2020, the Company had 27,738,062 shares of common stock outstanding, 9,279,839 treasury shares of common stock and 330,534 unvested shares of restricted common stock issued reflecting total paid-in capital of $332.0 million as of such date. As more fully disclosed in our audited consolidated financial statements for the year ended December 31, 2019, there were, 28,650,918 shares of common stock outstanding, 8,349,483 treasury shares of common stock and 345,534 unvested shares of restricted common stock, representing $329.6 million of additional paid-in capital. Common Stock Holders of common stock are entitled to one vote for each share held on all matters subject to a vote of stockholders, subject to the rights of holders of any outstanding preferred stock. Accordingly, holders of a majority of the shares of common stock entitled to vote in any election of directors may elect all of the directors standing for election, subject to the rights of holders of any outstanding preferred stock. Holders of common stock will be entitled to receive ratably any dividends that the board of directors may declare out of funds legally available therefor, subject to any preferential dividend rights of outstanding preferred stock. Upon the Company’s liquidation, dissolution or winding up, the holders of common stock will be entitled to receive ratably its net assets available after the payment of all debts and other liabilities and subject to the prior rights of holders of any outstanding preferred stock. Holders of common stock have no preemptive, subscription, redemption or conversion rights. There are no redemption or sinking fund provisions applicable to the common stock. All outstanding shares of the Company’s capital stock are fully paid and non-assessable. Stock Repurchase Program On August 1, 2018, the Company announced that its Board of Directors authorized a stock repurchase program authorizing the Company to repurchase up to $50.0 million of its common stock through December 31, 2020. For the three months ended June 30, 2020, the Company purchased 163,456 shares of its common stock for $2.0 million. For the six months ended June 30, 2020, the Company purchased 930,356 shares of its common stock for $10.0 million. At June 30, 2020, the Company has the capacity to repurchase $23.8 million of its common shares until December 2020 In addition, the Company acquired 17,500 shares for approximately $233,000 for the six months ended June 30, 2020, respectively, that were not part of the publicly announced share repurchase authorization. These shares consisted of shares retained to cover payroll withholding taxes in connection with the vesting of restricted stock awards Dividends On February 27, 2020, the Company’s Board of Directors declared a $0.06 per share quarterly dividend payable on April 3, 2020, to stockholders of record as of March 16, 2020. On May 4, 2020, the Board of Directors declared a $0.06 per share quarterly dividend payable on July 6, 2020 to stockholders of record as of June 15, 2020. The declaration and payment of any future dividends will be subject to the discretion of the Board of Directors and will depend on a variety of factors including the Company’s financial condition and results of operations. |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | NOTE 22. STOCK-BASED COMPENSATION Common and Restricted Stock The Company has adopted the Heritage Insurance Holdings, Inc., Omnibus Incentive Plan (the “Plan”) effective on May 22, 2014. The Plan authorized 2,981,737 shares of common stock for issuance under the Plan for future grants. At June 30, 2020 there were 1,558,518 shares available for grant under the Plan. The Company recognizes compensation expense under ASC 718 for its stock-based payments based on the fair value of the awards. In April 2020, the Company entered into a Restricted Stock Award Agreement granting 10,000 shares of restricted stock (“stock award”) to an employee of the Company. The stock award vests in two equal installments of 5,000 shares on April 6, 2021 and 2022 subject to continued employment. The fair market value on the date of grant of the shares was $10.60 and the associated compensation expense will be amortized ratably over the term of the vesting period commencing on date of the grant. The Plan authorizes the Company to grant stock options at exercise prices equal to the fair market value of the Company’s stock on the dates the options are granted. Any options granted would typically have a maximum term of ten years from the date of grant and vest primarily in equal annual installments over a range of one to five-year The Company has also granted shares of its common stock subject to certain restrictions under the Plan. Restricted stock awards granted to employee’s vest in equal installments generally over a five-year Restricted stock activity for the six months ended June 30, 2020 is as follows: Weighted-Average Grant-Date Fair Number of shares Value per Share Non-vested, at December 31, 2019 345,534 $ 19.56 Granted 10,000 10.35 Vested (7,500 ) 13.25 Canceled and surrendered (17,500 ) 13.25 Non-vested, at June 30, 2020 330,534 $ 19.76 Awards are being amortized to expense over the two to five-year |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | NOTE 23. SUBSEQUENT EVENTS The Company performed an evaluation of subsequent events through the date the condensed consolidated financial statements were issued and determined there were no recognized or unrecognized subsequent events that would require an adjustment or additional disclosure in the condensed consolidated financial statements as of June 30, 2020. On July 1, 2020, Regions issued an irrevocable standby Letter of Credit in the amount of $36.0 million under the Credit Agreement in favor of our affiliated insurance companies, Heritage P&C, NBIC and Zephyr, which letter of credit bears interest at 3.625% per annum. The letter of credit was established to provide collateral for reinsurance agreements entered into between Osprey Re and our affiliated insurance companies. Draws on the Letter of Credit are limited to covered reinsurance losses pursuant to the aforementioned reinsurance agreements. On August 3, 2020, the Company announced that its Board of Directors declared a $0.06 per share quarterly dividend payable on October 2, 2020 to stockholders of record as of September 15, 2020. |
Basis of Presentation and Sig_2
Basis of Presentation and Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The condensed consolidated financial statements include the accounts of Heritage Insurance Holdings, Inc. (together with its subsidiaries, the “Company” “we”, “us” or “our”). These statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Certain financial information that is normally included in annual consolidated financial statements prepared in accordance with GAAP, but that is not required for interim reporting purposes, has been omitted. In the opinion of the Company’s management, all material intercompany transactions and balances have been eliminated and all adjustments consisting of normal recurring accruals which are necessary for a fair statement of the financial condition and results of operations for the interim periods have been reflected. The accompanying interim condensed consolidated financial statements and related footnotes should be read in conjunction with the Company’s audited consolidated financial statements and related footnotes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019 (the “2019 Form 10-K”). |
Reclassification | Reclassification Certain prior year amounts have been reclassified to conform to the current year presentation. |
Recent Accounting Pronouncements | Recently Adopted Accounting Pronouncements In 2016, the Financial Accounting Standard Board (“FASB”) issued Accounting Standard Update (“ASU”) Financial Instruments – Credit Losses ASU No. 2016-13, Measurement of Credit Losses on Financial Instruments We adopted the standard on January 1, 2020, and based on the composition of our reinsurance recoverables, investment portfolio and other financial assets, current economic conditions and historical credit loss activity, the adoption of this standard did not have a material impact on our condensed consolidated financial statements and related disclosures. Accounting Pronouncements Not Yet Adopted In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting For information regarding other accounting standards that the Company has not yet adopted, refer to our 2019 Form 10-K, filed on March 10, 2020, the section of Note 1 of the notes to the consolidated financial statements entitled “Accounting Pronouncement Not Yet Adopted”. |
Fair Value Measurements | Fair Value Measurements In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement |
Internal Use Software | Internal Use Software In August 2018, the FASB issued ASU No. 2018-15, Intangibles—Goodwill and Other—Internal-Use Software |
Investments (Tables)
Investments (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Investments Debt And Equity Securities [Abstract] | |
Summary of Amortized Cost and Fair Value of Securities Available-For-Sale | Securities Available-for-Sale The following table summarizes the amortized cost and fair value of securities available-for-sale at June 30, 2020 and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income: June 30, 2020 Cost or Adjusted / Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Debt Securities Available-for-sale (In thousands) U.S. government and agency securities (1) $ 61,801 $ 1,680 $ 2 $ 63,479 States, municipalities and political subdivisions 102,195 5,176 4 107,367 Special revenue 265,565 9,226 49 274,742 Hybrid securities 99 — 4 95 Industrial and miscellaneous 242,301 10,301 8 252,594 Total $ 671,961 $ 26,383 $ 67 $ 698,277 (1) Includes securities at June 30, 2020 with a carrying amount of $21.5 million that were pledged as collateral for the advance agreement entered into with a financial institution in 2018. The Company is permitted to withdraw or exchange any portion of the pledged collateral over the minimum requirement at any time. The following table summarizes the amortized cost and fair value of securities available-for-sale at December 31, 2019 and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income: December 31, 2019 Cost or Adjusted / Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Debt Securities Available-for-sale (In thousands) U.S. government and agency securities (1) $ 53,836 $ 383 $ 28 $ 54,191 States, municipalities and political subdivisions 74,755 1,641 41 76,355 Special revenue 246,791 3,689 254 250,226 Hybrid securities 100 1 — 101 Industrial and miscellaneous 202,307 4,097 21 206,383 Total $ 577,789 $ 9,811 $ 344 $ 587,256 (1) Includes securities at December 31, 2019 with a carrying amount of $20.2 million that were pledged as collateral for the advance agreement entered into with a financial institution in 2018. The Company is permitted to withdraw or exchange any portion of the pledged collateral over the minimum requirement at any time. |
Schedule of Proceeds Received, Gross Realized Gains and Losses from Sales of Available-for-Sale Securities | Proceeds received, and the gross realized gains and losses from sales of available-for-sale securities, for the three and six months ended, June 30, 2020 and 2019 are as follows: Proceeds Gross Realized Gains Gross Realized Losses (In thousands) Three months ended June 30, 2020 $ 39,249 $ 49 $ 87 Three months ended June 30, 2019 $ 35,765 $ 975 $ 140 Proceeds Gross Realized Gains Gross Realized Losses (In thousands) Six months ended June 30, 2020 $ 46,860 $ 135 $ 113 Six months ended June 30, 2019 $ 45,216 $ 968 $ 204 |
Summary of Fixed Maturity Securities by Contractual Maturity Periods | The table below summarizes the Company’s fixed maturity securities at June 30, 2020 by contractual maturity periods. Actual results may differ as issuers may have the right to call or prepay obligations, with or without penalties, prior to the contractual maturity of those obligations. At June 30, 2020 Cost or Amortized Cost Percent of Total Fair Value Percent of Total Maturity dates: (In thousands) (In thousands) Due in one year or less $ 80,565 12 % $ 81,143 12 % Due after one year through five years 242,984 36 % 251,414 36 % Due after five years through ten years 137,887 21 % 147,093 21 % Due after ten years 210,525 31 % 218,627 31 % Total $ 671,961 100 % $ 698,277 100 % |
Summary of Net Investment Income | The following table summarizes the Company’s net investment income by major investment category for the three and six months ended June 30, 2020 and 2019, respectively: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 (In thousands) (In thousands) Debt securities $ 2,235 $ 3,571 $ 6,397 $ 6,295 Equity securities — 517 — 944 Cash and cash equivalents 607 197 959 938 Other investments 830 241 265 542 Net investment income 3,672 4,526 7,621 8,719 Less: Investment expenses 376 696 655 1,217 Net investment income, less investment expenses $ 3,296 $ 3,830 $ 6,966 $ 7,502 |
Schedule of Debt Securities Available-for-Sale in an Unrealized Loss Position | The following tables summarizes debt securities available-for-sale in an unrealized loss position at June 30, 2020, aggregated by major security category and length of time in a continued unrealized loss position (in thousands): Less Than Twelve Months Twelve Months or More June 30, 2020 Number of Securities Gross Unrealized Losses Fair Value Number of Securities Gross Unrealized Losses Fair Value Debt Securities Available-for-sale U.S. government and agency securities 2 $ 1 $ 79 1 $ 1 $ 7 States, municipalities and political subdivisions 3 4 2,471 — — — Special revenue 22 45 14,227 11 4 196 Hybrid securities 1 4 95 — — — Industrial and miscellaneous 15 8 11,122 — — — Total fixed maturity securities 43 $ 62 $ 27,994 12 $ 5 $ 203 The following tables summarizes debt securities available-for-sale in an unrealized loss position at December 31, 2019, aggregated by major security category and length of time in a continued unrealized loss position (in thousands): Less Than Twelve Months Twelve Months or More December 31, 2019 Number of Securities Gross Unrealized Losses Fair Number of Securities Gross Unrealized Losses Fair Value Debt Securities Available-for-sale U.S. government and agency securities 9 $ 10 $ 1,476 23 $ 18 $ 4,288 States, municipalities and political subdivisions 6 38 7,613 3 3 1,440 Special revenue 62 145 24,862 95 109 13,159 Industrial and miscellaneous 25 13 12,601 16 8 3,202 Total fixed maturity securities 102 $ 206 $ 46,552 137 $ 138 $ 22,089 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value of Financial Instruments | The table below presents the balances of our invested assets measured at fair value on a recurring basis: June 30, 2020 Total Level 1 Level 2 Level 3 Invested Assets: (in thousands) Debt Securities Available-for-sale U.S. government and agency securities $ 63,479 $ 374 $ 63,105 $ — States, municipalities and political subdivisions 107,367 — 107,367 — Special revenue 274,742 — 274,742 — Hybrid securities 95 — 95 — Industrial and miscellaneous 252,594 — 252,594 — Total debt securities 698,277 374 697,903 — Investments reported at NAV (1) 7,973 — — — Total investments $ 706,250 $ 374 $ 697,903 $ — December 31, 2019 Total Level 1 Level 2 Level 3 Invested Assets: (in thousands) Debt Securities Available-for-sale U.S. government and agency securities $ 54,191 $ 366 $ 53,825 $ — States, municipalities and political subdivisions 76,355 — 76,355 — Special revenue 250,226 — 250,226 — Hybrid securities 101 — 101 — Industrial and miscellaneous 206,383 — 206,383 — Total debt securities 587,256 366 586,890 — Investments reported at NAV (1) 7,993 — — — Total investments $ 595,249 $ 366 $ 586,890 $ — (1) Includes $1.6 million and $1.6 million of Federal Home Loan Banks membership shares held by the Company as of June 30, 2020 and December 31, 2019, respectively. |
Other Comprehensive Income (Tab
Other Comprehensive Income (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Comprehensive Income Net Of Tax [Abstract] | |
Summary of Other Comprehensive Income (Loss) and Tax Impact of Each Component of Other Comprehensive Income | The following table is a summary of other comprehensive income (loss) and discloses the tax impact of each component of other comprehensive income for the three and six months ended June 30, 2020 and 2019, respectively: For the Three Months Ended June 30, 2020 2019 Pre-tax Tax After-tax Pre-tax Tax After-tax (in thousands) Other comprehensive income Change in unrealized losses on investments, net $ 14,823 $ (3,431 ) $ 11,392 $ 7,068 $ (1,293 ) $ 5,775 Reclassification adjustment of realized losses (gains) included in net income 38 (9 ) 29 59 (11 ) 48 Effect on other comprehensive income $ 14,861 $ (3,440 ) $ 11,421 $ 7,127 $ (1,304 ) $ 5,823 For the Six Months Ended June 30, 2020 2019 Pre-tax Tax After-tax Pre-tax Tax After-tax (in thousands) Other comprehensive income Change in unrealized losses on investments, net $ 16,850 $ (3,900 ) $ 12,950 $ 15,104 $ (3,617 ) $ 11,487 Reclassification adjustment of realized losses (gains) included in net income (22 ) 5 (17 ) 394 (95 ) 299 Effect on other comprehensive income $ 16,828 $ (3,895 ) $ 12,933 $ 15,498 $ (3,712 ) $ 11,786 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Leases [Abstract] | |
Components of Company's Lease Costs | Components of the Company’s lease costs for the three and six months ended June 30, 2020 and 2019 are as follows (in thousands): Three Months Ended June 30, 2020 Three Months Ended June 30, 2019 Amortization of ROU assets - Finance leases $ 21 $ 18 Interest on lease liabilities - Finance leases 5 7 Variable lease cost (cost excluded from lease payments) 125 111 Operating lease cost (cost resulting from lease payments) 338 328 Total lease cost $ 489 $ 464 Six Months Ended June 30, 2020 Six Months Ended June 30, 2019 Amortization of ROU assets - Finance leases $ 43 $ 38 Interest on lease liabilities - Finance leases 11 14 Variable lease cost (cost excluded from lease payments) 256 221 Operating lease cost (cost resulting from lease payments) 685 588 Total lease cost $ 995 $ 861 |
Supplemental Cash Flow Information and Non-Cash Activity Related to Operating and Financing Leases | Supplemental cash flow information and non-cash activity related to our operating and financing leases as of June 30, 2020 and 2019 are as follows (in thousands): June 30, 2020 June 30, 2019 Finance lease - Operating cash flows $ 11 $ 16 Finance lease - Financing cash flows $ 36 $ 47 Operating lease - Operating cash flows (fixed payments) $ 720 $ 341 Operating lease - Operating cash flows (liability reduction) $ 507 $ 276 |
Supplemental Balance Sheet Information Related to Operating and Financing Leases | Supplemental balance sheet information related to our operating and financing leases as of June 30, 2020 are as follows (in thousands): Balance Sheet Classification June 30, 2020 Right-of-use assets - operating Other assets $ 6,377 Right-of-use assets - finance Other assets $ 259 Lease Liability (1) Accounts payable and other liabilities $ (8,083 ) Lease Liability - finance Accounts payable and other liabilities $ (288 ) (1) Includes $1.3 million in lease incentives received in the first quarter of 2019. |
Weighted-Average Remaining Lease Term and Discount Rate for Operating and Financing Leases | Weighted-average remaining lease term and discount rate for our operating and financing leases as of June 30, 2020 are as follows: June 30, 2020 Weighted average lease term - Finance leases 3.18 yrs. Weighted average lease term - Operating leases 7.41 yrs. Weighted average discount rate - Finance leases 7.1 % Weighted average discount rate - Operating leases 5.3 % |
Maturities of Lease Liabilities by Fiscal Year for Operating and Financing Leases | Maturities of lease liabilities by fiscal year for our operating and financing leases as of June 30, 2020 are as follows (in thousands): June 30, 2020 2020 remaining $ 765 2021 1,548 2022 1,566 2023 1,487 2024 1,112 Thereafter 3,694 Total lease payments 10,172 Less: imputed interest (1,801 ) Present value of lease liabilities $ 8,371 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Property Plant And Equipment [Abstract] | |
Schedule of Property and Equipment, Net | Property and equipment, net consisted of the following at June 30, 2020 and December 31, 2019: June 30, 2020 December 31, 2019 (In thousands) Land $ 2,582 $ 2,582 Building 11,390 11,390 Computer hardware and software 5,725 5,712 Office furniture and equipment 2,007 2,007 Tenant and leasehold improvements 8,133 8,105 Vehicle fleet 850 789 Total, at cost 30,687 30,585 Less: accumulated depreciation and amortization (10,689 ) (9,832 ) Property and equipment, net $ 19,998 $ 20,753 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | Goodwill (in thousands) Balance as of December 31, 2019 $ 152,459 Goodwill acquired — Impairment — Balance as of June 30, 2020 $ 152,459 |
Schedule of Estimated Amortization of Intangible Assets | Estimated annual pretax amortization of intangible assets for each of the next five years and thereafter is as follows (in thousands): Year Amount (1) 2020 - remaining $ 3,183 2021 $ 6,351 2022 $ 6,351 2023 $ 6,351 2024 $ 6,351 Thereafter $ 35,559 Total $ 64,146 (1) Excludes insurance licenses valued at $1.3 million and classified as an indefinite lived intangible which is subject to annual impairment testing and not amortized. |
Other Assets (Tables)
Other Assets (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |
Schedule of Other Assets | The following table summarizes the Company’s other assets for the periods indicated: Description June 30, 2020 December 31, 2019 (In thousands) Other amounts receivable 8,876 1,185 State underwriting pooling & assoc. 4,213 3,165 Prepaid expense 4,057 3,999 Right to use assets 6,636 6,645 Other assets 306 1,328 Premium tax 4,716 1,788 Total other assets $ 28,804 $ 18,110 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Basic and Diluted Earnings Per Share (EPS) | The following table sets forth the computation of basic and diluted earnings per share (“EPS”) for the periods indicated. Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Basic earnings per share: Net income attributable to common stockholders (000's) $ 4,132 $ 721 $ 11,752 $ 7,685 Weighted average shares outstanding 27,876,801 29,346,234 28,212,735 29,442,363 Basic earnings per share: $ 0.15 $ 0.02 $ 0.42 $ 0.26 Diluted earnings per share: Net income attributable to common stockholders (000's) $ 4,132 $ 721 $ 11,752 $ 7,685 Weighted average shares outstanding 27,876,801 29,346,234 28,212,735 29,442,363 Weighted average dilutive shares 36,895 6,562 18,539 5,305 Total weighted average dilutive shares 27,913,696 29,352,796 28,231,273 29,447,668 Diluted earnings per share: $ 0.15 $ 0.02 $ 0.42 $ 0.26 |
Deferred Reinsurance Ceding C_2
Deferred Reinsurance Ceding Commission (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Insurance [Abstract] | |
Schedule of Activity with Regard to Deferred Reinsurance Ceding Commission | The table below depicts the activity with regard to deferred reinsurance ceding commission during the three and six months ended June 30, 2020 and 2019. Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 (In thousands) Beginning balance of deferred ceding commission income $ 34,380 $ 40,474 $ 37,464 $ 44,996 Ceding commission deferred 15,074 10,389 25,919 23,036 Less: ceding commission earned (14,892 ) (16,158 ) (28,821 ) (33,327 ) Ending balance of deferred ceding commission income $ 34,562 $ 34,705 $ 34,562 $ 34,705 |
Deferred Policy Acquisition C_2
Deferred Policy Acquisition Costs (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Insurance [Abstract] | |
Summary of Activity in Deferred Policy Acquisition Costs (DPAC) | The Company anticipates that its DPAC costs will be fully recoverable in the near term. The table below depicts the activity with regard to DPAC during the three and six months ended June 30, 2020 and 2019. Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 (In thousands) Beginning Balance $ 74,895 $ 69,883 $ 77,211 $ 73,055 Policy acquisition costs deferred 48,173 35,271 86,304 73,901 Amortization (41,478 ) (31,090 ) (81,925 ) (72,892 ) Ending Balance $ 81,590 $ 74,064 $ 81,590 $ 74,064 |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Components of Deferred Tax Liability | The table below summarizes the significant components of our net deferred tax liability for the periods indicated: June 30, 2020 December 31, 2019 Deferred tax assets: (In thousands) Unearned premiums $ 8,274 $ 12,585 Unearned commission 8,000 8,671 Tax-related discount on loss reserve 2,668 2,716 Stock-based compensation 527 297 Accrued expenses 1,987 757 Leases 334 331 Other 1,908 1,890 Total deferred tax asset 23,698 27,247 Deferred tax liabilities: Deferred acquisition costs 18,885 17,871 Prepaid expenses 268 153 Unrealized gains 6,090 2,195 Property and equipment 1,176 1,029 Note discount 404 478 Basis in purchased investments 76 100 Basis in purchased intangibles 16,286 16,977 Other 1,470 1,067 Total deferred tax liabilities 44,655 39,870 Net deferred tax liability $ (20,957 ) $ (12,623 ) |
Reinsurance (Tables)
Reinsurance (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Insurance [Abstract] | |
Schedule of Effect of Reinsurance Arrangements in Consolidated Statement of Income | Effect of Reinsurance The Company’s reinsurance arrangements had the following effect on certain items in the condensed consolidated statement of income for the three and six months ended June 30, 2020 and 2019: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 (In thousands) (In thousands) Premium written: Direct $ 290,432 $ 254,840 $ 519,534 $ 465,188 Ceded (327,962 ) (312,600 ) (358,599 ) (359,442 ) Net $ (37,530 ) $ (57,760 ) $ 160,935 $ 105,746 Premiums earned: Direct $ 241,792 $ 229,958 $ 476,508 $ 458,548 Ceded (112,735 ) (115,875 ) (221,445 ) (234,774 ) Net $ 129,057 $ 114,083 $ 255,063 $ 223,774 Loss and Loss Adjustment Expenses Direct $ 139,311 $ 162,390 $ 246,676 $ 274,566 Ceded (60,442 ) (88,091 ) (99,626 ) (138,128 ) Net $ 78,869 $ 74,299 $ 147,050 $ 136,438 |
Reserve for Unpaid Losses And L
Reserve for Unpaid Losses And Loss Adjustment Expenses (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Insurance [Abstract] | |
Summary of Reserve for Unpaid Losses And LAE | The table below summarizes the activity related to the Company’s reserve for unpaid losses and LAE: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 (In thousands) Balance, beginning of period $ 607,177 $ 404,484 $ 613,533 $ 432,359 Less: reinsurance recoverable on unpaid losses 387,637 214,471 393,630 250,507 Net balance, beginning of period 219,540 190,013 219,903 181,852 Incurred related to: Current year 83,822 75,623 156,153 138,348 Prior years (4,953 ) (1,324 ) (9,103 ) (1,910 ) Total incurred 78,869 74,299 147,050 136,438 Paid related to: Current year 55,372 34,793 76,608 43,155 Prior years 26,689 22,130 73,997 67,746 Total paid 82,061 56,923 150,605 110,901 Net balance, end of period 216,348 207,389 216,348 207,389 Plus: reinsurance recoverable on unpaid losses 404,370 223,023 404,370 223,023 Balance, end of period $ 620,718 $ 430,412 $ 620,718 $ 430,412 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Company's Debt and Credit Facilities | The following table summarizes the Company’s debt and credit facilities as of June 30, 2020 and December 31, 2019: June 30, 2020 December 31, 2019 (in thousands) Convertible debt $ 23,413 $ 23,413 Mortgage loan 11,974 12,117 Term loan facility 65,625 69,375 Revolving credit facility 10,000 10,000 FHLB loan agreement 19,200 19,200 Total principal amount $ 130,212 $ 134,105 Less: unamortized discount and issuance costs $ 4,156 $ 4,857 Total long-term debt $ 126,056 $ 129,248 |
Schedule of Principal Payments on Long-Term Debt | The schedule of principal payments on long-term debt as of June 30, 2020 is as follows: Year Amount (In thousands) 2020 remaining $ 5,772 2021 7,806 2022 7,822 2023 74,539 2024 354 Thereafter 33,919 Total $ 130,212 |
Accounts Payable and Other Li_2
Accounts Payable and Other Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Accounts Payable and Other Liabilities | Accounts payable and other liabilities consist of the following as of June 30, 2020 and December 31, 2019: Description June 30, 2020 December 31, 2019 (In thousands) Deferred ceding commission $ 34,562 $ 37,464 Accounts payable and other payables 7,767 7,225 Lease obligations 8,371 8,369 Accrued interest and issuance costs 829 1,052 Accrued dividends 1,693 1,750 Other liabilities 183 387 Commission payables 14,708 14,798 Total other liabilities $ 68,113 $ 71,045 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Schedule of Restricted Stock Activity | Weighted-Average Grant-Date Fair Number of shares Value per Share Non-vested, at December 31, 2019 345,534 $ 19.56 Granted 10,000 10.35 Vested (7,500 ) 13.25 Canceled and surrendered (17,500 ) 13.25 Non-vested, at June 30, 2020 330,534 $ 19.76 |
Basis of Presentation and Sig_3
Basis of Presentation and Significant Accounting Policies - Additional Information (Detail) - Accounting Standards Update 2016-13 [Member] | Jun. 30, 2020 |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |
Change in accounting principle, accounting standards update, adopted | true |
Change in accounting principle, accounting standards update, immaterial effect | true |
Change in accounting principle, accounting standards update, adoption date | Jan. 1, 2020 |
Investments - Additional Inform
Investments - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Investments [Line Items] | |||||
Realized gains from sale of equities | $ 1,300,000 | $ 2,700,000 | |||
Realized loss from sale of equities | 1,100,000 | 1,400,000 | |||
Unrealized gain on investment securities | 292,000 | 292,000 | |||
Credit allowance for securities | $ 0 | $ 0 | |||
Other Investments, estimated fair value | 6,374,000 | 6,374,000 | $ 6,375,000 | ||
Limited Partnerships, REIT's and Limited Liability Company Investments [Member] | |||||
Investments [Line Items] | |||||
Other Investments, estimated fair value | 6,400,000 | 6,400,000 | $ 6,400,000 | ||
Equity Securities [Member] | |||||
Investments [Line Items] | |||||
Proceeds from sale of marketable securities | $ 0 | $ 21,900,000 | $ 0 | $ 23,800,000 |
Investments - Summary of Amorti
Investments - Summary of Amortized Cost and Fair Value of Securities Available-For-Sale (Detail) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Schedule of Available-for-sale Securities [Line Items] | ||
Debt Securities Available-for-sale, Cost or Adjusted /Amortized Cost | $ 671,961 | $ 577,789 |
Debt Securities Available-for-sale, Gross Unrealized Gains | 26,383 | 9,811 |
Debt Securities Available-for-sale, Gross Unrealized Losses | 67 | 344 |
Debt Securities Available-for-sale, Fair Value | 698,277 | 587,256 |
U.S. government and agency securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Debt Securities Available-for-sale, Cost or Adjusted /Amortized Cost | 61,801 | 53,836 |
Debt Securities Available-for-sale, Gross Unrealized Gains | 1,680 | 383 |
Debt Securities Available-for-sale, Gross Unrealized Losses | 2 | 28 |
Debt Securities Available-for-sale, Fair Value | 63,479 | 54,191 |
States, Municipalities and Political Subdivisions [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Debt Securities Available-for-sale, Cost or Adjusted /Amortized Cost | 102,195 | 74,755 |
Debt Securities Available-for-sale, Gross Unrealized Gains | 5,176 | 1,641 |
Debt Securities Available-for-sale, Gross Unrealized Losses | 4 | 41 |
Debt Securities Available-for-sale, Fair Value | 107,367 | 76,355 |
Special Revenue [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Debt Securities Available-for-sale, Cost or Adjusted /Amortized Cost | 265,565 | 246,791 |
Debt Securities Available-for-sale, Gross Unrealized Gains | 9,226 | 3,689 |
Debt Securities Available-for-sale, Gross Unrealized Losses | 49 | 254 |
Debt Securities Available-for-sale, Fair Value | 274,742 | 250,226 |
Hybrid Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Debt Securities Available-for-sale, Cost or Adjusted /Amortized Cost | 99 | 100 |
Debt Securities Available-for-sale, Gross Unrealized Gains | 1 | |
Debt Securities Available-for-sale, Gross Unrealized Losses | 4 | |
Debt Securities Available-for-sale, Fair Value | 95 | 101 |
Industrial and Miscellaneous [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Debt Securities Available-for-sale, Cost or Adjusted /Amortized Cost | 242,301 | 202,307 |
Debt Securities Available-for-sale, Gross Unrealized Gains | 10,301 | 4,097 |
Debt Securities Available-for-sale, Gross Unrealized Losses | 8 | 21 |
Debt Securities Available-for-sale, Fair Value | $ 252,594 | $ 206,383 |
Investments - Summary of Amor_2
Investments - Summary of Amortized Cost and Fair Value of Securities Available-For-Sale (Parenthetical) (Detail) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
U.S. government and agency securities [Member] | Pledged securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Carrying Amount | $ 21.5 | $ 20.2 |
Investments - Schedule of Proce
Investments - Schedule of Proceeds Received, Gross Realized Gains and Losses from Sales of Available-for-Sale Securities (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Investments Debt And Equity Securities [Abstract] | ||||
Proceeds | $ 39,249 | $ 35,765 | $ 46,860 | $ 45,216 |
Gross Realized Gains | 49 | 975 | 135 | 968 |
Gross Realized Losses | $ 87 | $ 140 | $ 113 | $ 204 |
Investments - Summary of Fixed
Investments - Summary of Fixed Maturity Securities by Contractual Maturity Periods (Detail) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Dec. 31, 2019 | |
Investments Debt And Equity Securities [Abstract] | ||
Maturity date Due in one year or less, Cost or Amortized Cost | $ 80,565 | |
Maturity date Due after one year through five years, Cost or Amortized Cost | 242,984 | |
Maturity date Due after five years through ten years, Cost or Amortized Cost | 137,887 | |
Maturity date Due after ten years, Cost or Amortized Cost | 210,525 | |
Debt Securities Available-for-sale, Cost or Adjusted /Amortized Cost | $ 671,961 | $ 577,789 |
Maturity date Due in one year or less, Percentage of Total | 12.00% | |
Maturity date Due after one year through five years, Percentage of Total | 36.00% | |
Maturity date Due after five years through ten years, Percentage of Total | 21.00% | |
Maturity date Due after ten years, Percentage of Total | 31.00% | |
Maturity date Total, Percentage | 100.00% | |
Maturity date Due in one year or less, Fair Value | $ 81,143 | |
Maturity date Due after one year through five years, Fair Value | 251,414 | |
Maturity date Due after five years through ten years, Fair Value | 147,093 | |
Maturity date Due after ten years, Fair Value | 218,627 | |
Maturity date Total, Fair Value | $ 698,277 | $ 587,256 |
Maturity date Due in one year or less, Percentage of Total | 12.00% | |
Maturity date Due after one year through five years, Percentage of Total | 36.00% | |
Maturity date Due after five years through ten years, Percentage of Total | 21.00% | |
Maturity date Due after ten years, Percentage of Total | 31.00% | |
Maturity date Total, Percentage | 100.00% |
Investments - Summary of Net In
Investments - Summary of Net Investment Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Schedule of Available-for-sale Securities [Line Items] | ||||
Gross investment income (loss) | $ 3,672 | $ 4,526 | $ 7,621 | $ 8,719 |
Less: Investment expenses | 376 | 696 | 655 | 1,217 |
Net investment income, less investment expenses | 3,296 | 3,830 | 6,966 | 7,502 |
Debt Securities [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Gross investment income (loss) | 2,235 | 3,571 | 6,397 | 6,295 |
Equity Securities [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Gross investment income (loss) | 517 | 944 | ||
Cash and Cash Equivalents [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Gross investment income (loss) | 607 | 197 | 959 | 938 |
Other Investments [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Gross investment income (loss) | $ 830 | $ 241 | $ 265 | $ 542 |
Investments - Schedule of Debt
Investments - Schedule of Debt Securities Available-for-Sale in an Unrealized Loss Position (Detail) $ in Thousands | Jun. 30, 2020USD ($)Security | Dec. 31, 2019USD ($)Security |
Schedule of Available-for-sale Securities [Line Items] | ||
Debt Securities Available-for-sale Less Than Twelve Months, Number of Securities | Security | 43 | 102 |
Debt Securities Available-for-sale Less Than Twelve Months, Gross Unrealized Losses | $ 62 | $ 206 |
Debt Securities Available-for-sale Less Than Twelve Months, Fair Value | $ 27,994 | $ 46,552 |
Debt Securities Available-for-sale Twelve Months or More, Number of Securities | Security | 12,000 | 137,000 |
Debt Securities Available-for-sale Twelve Months or More, Gross Unrealized Losses | $ 5 | $ 138 |
Debt Securities Available-for-sale Twelve Months or More, Fair Value | $ 203 | $ 22,089 |
U.S. government and agency securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Debt Securities Available-for-sale Less Than Twelve Months, Number of Securities | Security | 2 | 9 |
Debt Securities Available-for-sale Less Than Twelve Months, Gross Unrealized Losses | $ 1 | $ 10 |
Debt Securities Available-for-sale Less Than Twelve Months, Fair Value | $ 79 | $ 1,476 |
Debt Securities Available-for-sale Twelve Months or More, Number of Securities | Security | 1,000 | 23,000 |
Debt Securities Available-for-sale Twelve Months or More, Gross Unrealized Losses | $ 1 | $ 18 |
Debt Securities Available-for-sale Twelve Months or More, Fair Value | $ 7 | $ 4,288 |
States, Municipalities and Political Subdivisions [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Debt Securities Available-for-sale Less Than Twelve Months, Number of Securities | Security | 3 | 6 |
Debt Securities Available-for-sale Less Than Twelve Months, Gross Unrealized Losses | $ 4 | $ 38 |
Debt Securities Available-for-sale Less Than Twelve Months, Fair Value | $ 2,471 | $ 7,613 |
Debt Securities Available-for-sale Twelve Months or More, Number of Securities | Security | 3,000 | |
Debt Securities Available-for-sale Twelve Months or More, Gross Unrealized Losses | $ 3 | |
Debt Securities Available-for-sale Twelve Months or More, Fair Value | $ 1,440 | |
Special Revenue [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Debt Securities Available-for-sale Less Than Twelve Months, Number of Securities | Security | 22 | 62 |
Debt Securities Available-for-sale Less Than Twelve Months, Gross Unrealized Losses | $ 45 | $ 145 |
Debt Securities Available-for-sale Less Than Twelve Months, Fair Value | $ 14,227 | $ 24,862 |
Debt Securities Available-for-sale Twelve Months or More, Number of Securities | Security | 11,000 | 95,000 |
Debt Securities Available-for-sale Twelve Months or More, Gross Unrealized Losses | $ 4 | $ 109 |
Debt Securities Available-for-sale Twelve Months or More, Fair Value | $ 196 | $ 13,159 |
Hybrid Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Debt Securities Available-for-sale Less Than Twelve Months, Number of Securities | Security | 1 | |
Debt Securities Available-for-sale Less Than Twelve Months, Gross Unrealized Losses | $ 4 | |
Debt Securities Available-for-sale Less Than Twelve Months, Fair Value | $ 95 | |
Industrial and Miscellaneous [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Debt Securities Available-for-sale Less Than Twelve Months, Number of Securities | Security | 15 | 25 |
Debt Securities Available-for-sale Less Than Twelve Months, Gross Unrealized Losses | $ 8 | $ 13 |
Debt Securities Available-for-sale Less Than Twelve Months, Fair Value | $ 11,122 | $ 12,601 |
Debt Securities Available-for-sale Twelve Months or More, Number of Securities | Security | 16,000 | |
Debt Securities Available-for-sale Twelve Months or More, Gross Unrealized Losses | $ 8 | |
Debt Securities Available-for-sale Twelve Months or More, Fair Value | $ 3,202 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Schedule of Fair Value of Financial Instruments (Detail) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt securities, available-for-sale | $ 698,277 | $ 587,256 |
Investments reported at NAV | 7,973 | 7,993 |
Total investments | 706,250 | 595,249 |
Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt securities, available-for-sale | 374 | 366 |
Total investments | 374 | 366 |
Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt securities, available-for-sale | 697,903 | 586,890 |
Total investments | 697,903 | 586,890 |
U.S. government and agency securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt securities, available-for-sale | 63,479 | 54,191 |
U.S. government and agency securities [Member] | Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt securities, available-for-sale | 374 | 366 |
U.S. government and agency securities [Member] | Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt securities, available-for-sale | 63,105 | 53,825 |
States, Municipalities and Political Subdivisions [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt securities, available-for-sale | 107,367 | 76,355 |
States, Municipalities and Political Subdivisions [Member] | Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt securities, available-for-sale | 107,367 | 76,355 |
Special Revenue [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt securities, available-for-sale | 274,742 | 250,226 |
Special Revenue [Member] | Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt securities, available-for-sale | 274,742 | 250,226 |
Hybrid Securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt securities, available-for-sale | 95 | 101 |
Hybrid Securities [Member] | Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt securities, available-for-sale | 95 | 101 |
Industrial and Miscellaneous [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt securities, available-for-sale | 252,594 | 206,383 |
Industrial and Miscellaneous [Member] | Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt securities, available-for-sale | $ 252,594 | $ 206,383 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Schedule of Fair Value of Financial Instruments (Parenthetical) (Detail) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Fair Value Disclosures [Abstract] | ||
Federal home loan banks membership shares | $ 1.6 | $ 1.6 |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments - Additional Information (Detail) - USD ($) | 3 Months Ended | |||
Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2019 | Mar. 31, 2019 | |
Nonrecurring [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Non-recurring fair value adjustments | $ 0 | $ 0 | $ 0 | $ 0 |
Other Comprehensive Income - Su
Other Comprehensive Income - Summary of Other Comprehensive Income (Loss) and Tax Impact of Each Component of Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Other comprehensive income | ||||
Change in unrealized losses on investments, net, Pre-tax | $ 14,823 | $ 7,068 | $ 16,850 | $ 15,104 |
Reclassification adjustment of realized losses (gains) included in net income, Pre-tax | 38 | 59 | (22) | 394 |
Effect on other comprehensive income, Pre-tax | 14,861 | 7,127 | 16,828 | 15,498 |
Change in unrealized losses on investments, net, Tax | (3,431) | (1,293) | (3,900) | (3,617) |
Reclassification adjustment of realized losses (gains) included in net income, Tax | (9) | (11) | 5 | (95) |
Effect on other comprehensive income, Tax | (3,440) | (1,304) | (3,895) | (3,712) |
Change in unrealized losses on investments, net, After-tax | 11,392 | 5,775 | 12,950 | 11,487 |
Reclassification adjustment of realized losses (gains) included in net income, After-tax | 29 | 48 | (17) | 299 |
Effect on other comprehensive income, After-tax | $ 11,421 | $ 5,823 | $ 12,933 | $ 11,786 |
Leases - Additional Information
Leases - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2020 | |
Lessee Lease Description [Line Items] | |
Lease renewal, Description | one or more options to renew. |
Minimum [Member] | |
Lessee Lease Description [Line Items] | |
Lease terms | 1 year |
Renewal terms of lease | 2 years |
Maximum [Member] | |
Lessee Lease Description [Line Items] | |
Lease terms | 10 years |
Renewal terms of lease | 10 years |
Leases - Components of Company'
Leases - Components of Company's Lease Costs (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Leases [Abstract] | ||||
Amortization of ROU assets - Finance leases | $ 21 | $ 18 | $ 43 | $ 38 |
Interest on lease liabilities - Finance leases | 5 | 7 | 11 | 14 |
Variable lease cost (cost excluded from lease payments) | 125 | 111 | 256 | 221 |
Operating lease cost (cost resulting from lease payments) | 338 | 328 | 685 | 588 |
Total lease cost | $ 489 | $ 464 | $ 995 | $ 861 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information and Non-Cash Activity Related to Operating and Financing Leases (Detail) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Leases [Abstract] | ||
Finance lease - Operating cash flows | $ 11 | $ 16 |
Finance lease - Financing cash flows | 36 | 47 |
Operating lease - Operating cash flows (fixed payments) | 720 | 341 |
Operating lease - Operating cash flows (liability reduction) | $ 507 | $ 276 |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information Related to Operating and Financing Leases (Detail) $ in Thousands | Jun. 30, 2020USD ($) |
Leases [Abstract] | |
Right-of-use assets - operating | $ 6,377 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:OtherAssets |
Right-of-use assets - finance | $ 259 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:OtherAssets |
Lease Liability - operating | $ (8,083) |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilities |
Lease Liability - finance | $ (288) |
Finance Lease, Liability, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilities |
Leases - Supplemental Balance_2
Leases - Supplemental Balance Sheet Information Related to Operating and Financing Leases (Parenthetical) (Detail) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Leases [Abstract] | |
Lease incentives received | $ 1.3 |
Leases - Weighted-Average Remai
Leases - Weighted-Average Remaining Lease Term and Discount Rate for Operating and Financing Leases (Detail) | Jun. 30, 2020 |
Leases [Abstract] | |
Weighted average lease term - Finance leases | 3 years 2 months 4 days |
Weighted average lease term - Operating leases | 7 years 4 months 28 days |
Weighted average discount rate - Finance leases | 7.10% |
Weighted average discount rate - Operating leases | 5.30% |
Leases - Maturities of Lease Li
Leases - Maturities of Lease Liabilities by Fiscal Year for Operating and Financing Leases (Detail) $ in Thousands | Jun. 30, 2020USD ($) |
Leases [Abstract] | |
2020 remaining | $ 765 |
2021 | 1,548 |
2022 | 1,566 |
2023 | 1,487 |
2024 | 1,112 |
Thereafter | 3,694 |
Total lease payments | 10,172 |
Less: imputed interest | (1,801) |
Present value of lease liabilities | $ 8,371 |
Property and Equipment, Net - S
Property and Equipment, Net - Schedule of Property and Equipment, Net (Detail) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Property, Plant and Equipment [Line Items] | ||
Total, at cost | $ 30,687 | $ 30,585 |
Less: accumulated depreciation and amortization | (10,689) | (9,832) |
Property and equipment, net | 19,998 | 20,753 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total, at cost | 2,582 | 2,582 |
Building [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total, at cost | 11,390 | 11,390 |
Computer Hardware and Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total, at cost | 5,725 | 5,712 |
Office Furniture and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total, at cost | 2,007 | 2,007 |
Tenant and Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total, at cost | 8,133 | 8,105 |
Vehicle Fleet [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total, at cost | $ 850 | $ 789 |
Property and Equipment, Net - A
Property and Equipment, Net - Additional Information (Detail) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020USD ($)Building | Jun. 30, 2019USD ($) | Jun. 30, 2020USD ($)aft²Building | Jun. 30, 2019USD ($) | |
Property Plant And Equipment Useful Life And Values [Abstract] | ||||
Depreciation and amortization expense | $ | $ 425,000 | $ 1,000,000 | $ 857,000 | $ 1,600,000 |
Number of acres of land purchased | a | 15 | |||
Number of buildings | Building | 5 | 5 | ||
Gross area of acquired property | ft² | 229,000 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Finite Lived Intangible Assets [Line Items] | |||||
Goodwill | $ 152,459,000 | $ 152,459,000 | $ 152,459,000 | ||
Intangibles, net | 65,461,000 | 65,461,000 | $ 68,642,000 | ||
Indefinite lived intangible, insurance licenses | 1,300,000 | 1,300,000 | |||
Amortization of intangible assets | 1,600,000 | $ 2,100,000 | $ 3,200,000 | $ 4,200,000 | |
Impairment of intangible assets | $ 0 | $ 0 | |||
Minimum [Member] | |||||
Finite Lived Intangible Assets [Line Items] | |||||
Useful life of intangible asset | 2 years 6 months | ||||
Finite-lived intangible assets useful lives | 2 years 6 months | ||||
Maximum [Member] | |||||
Finite Lived Intangible Assets [Line Items] | |||||
Useful life of intangible asset | 15 years | ||||
Finite-lived intangible assets useful lives | 15 years |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Schedule of Goodwill (Details) $ in Thousands | Jun. 30, 2020USD ($) |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Beginning balance | $ 152,459 |
Ending balance | $ 152,459 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Schedule of Estimated Amortization of Intangible Assets (Details) $ in Thousands | Jun. 30, 2020USD ($) | [1] |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
2020 - remaining | $ 3,183 | |
2021 | 6,351 | |
2022 | 6,351 | |
2023 | 6,351 | |
2024 | 6,351 | |
Thereafter | 35,559 | |
Total | $ 64,146 | |
[1] | Excludes insurance licenses valued at $1.3 million and classified as an indefinite lived intangible which is subject to annual impairment testing and not amortized |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets - Schedule of Estimated Amortization of Intangible Assets (Parenthetical) (Details) $ in Millions | Jun. 30, 2020USD ($) |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Indefinite lived intangible, insurance licenses | $ 1.3 |
Other Assets - Schedule of Othe
Other Assets - Schedule of Other Assets (Detail) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | ||
Other amounts receivable | $ 8,876 | $ 1,185 |
State underwriting pooling & assoc. | 4,213 | 3,165 |
Prepaid expense | 4,057 | 3,999 |
Right to use assets | 6,636 | 6,645 |
Other assets | 306 | 1,328 |
Premium tax | 4,716 | 1,788 |
Total other assets | $ 28,804 | $ 18,110 |
Other Assets - Additional Infor
Other Assets - Additional Information (Detail) - Secured Promissory Notes [Member] $ in Thousands | 1 Months Ended |
Jan. 31, 2020USD ($)Note | |
Investments [Line Items] | |
Number of secured promissory notes | Note | 2 |
Secured promissory notes in each | $ 3,750 |
Investment Interest Rate | 8.00% |
Principal payments in equal installments | $ 300,000 |
Investment maturity date | Feb. 1, 2023 |
Debt instrument, interest rate commencement date | Interest payments commenced on March 1, 2020. |
Debt instrument, description | The Notes mature on February 1, 2023 and bear an 8% interest rate per annum, with principal payments in equal installments of $300,000 due on the first day of each month commencing on June 1, 2021. |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Computation of Basic and Diluted Earnings Per Share (EPS) (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Basic earnings per share: | ||||
Net income attributable to common stockholders (000's) | $ 4,132 | $ 721 | $ 11,752 | $ 7,685 |
Weighted average shares outstanding | 27,876,801 | 29,346,234 | 28,212,735 | 29,442,363 |
Basic earnings per share: | $ 0.15 | $ 0.02 | $ 0.42 | $ 0.26 |
Diluted earnings per share: | ||||
Net income attributable to common stockholders (000's) | $ 4,132 | $ 721 | $ 11,752 | $ 7,685 |
Weighted average shares outstanding | 27,876,801 | 29,346,234 | 28,212,735 | 29,442,363 |
Weighted average dilutive shares | 36,895 | 6,562 | 18,539 | 5,305 |
Total weighted average dilutive shares | 27,913,696 | 29,352,796 | 28,231,273 | 29,447,668 |
Diluted earnings per share: | $ 0.15 | $ 0.02 | $ 0.42 | $ 0.26 |
Deferred Reinsurance Ceding C_3
Deferred Reinsurance Ceding Commission - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Policy Acquisition Costs [Member] | ||||
Deferred Reinsurance Ceding Commission [Line Items] | ||||
Ceding commission income | $ 11.3 | $ 12.1 | $ 21.7 | $ 25 |
General and Administrative Expenses [Member] | ||||
Deferred Reinsurance Ceding Commission [Line Items] | ||||
Ceding commission income | $ 3.6 | $ 4 | $ 7.1 | $ 8.3 |
Deferred Reinsurance Ceding C_4
Deferred Reinsurance Ceding Commission - Schedule of Activity with Regard to Deferred Reinsurance Ceding Commission (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Insurance [Abstract] | ||||
Beginning balance of deferred ceding commission income | $ 34,380 | $ 40,474 | $ 37,464 | $ 44,996 |
Ceding commission deferred | 15,074 | 10,389 | 25,919 | 23,036 |
Less: ceding commission earned | (14,892) | (16,158) | (28,821) | (33,327) |
Ending balance of deferred ceding commission income | $ 34,562 | $ 34,705 | $ 34,562 | $ 34,705 |
Deferred Policy Acquisition C_3
Deferred Policy Acquisition Costs - Summary of Activity in Deferred Policy Acquisition Costs (DPAC) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Insurance [Abstract] | ||||
Beginning Balance | $ 74,895 | $ 69,883 | $ 77,211 | $ 73,055 |
Policy acquisition costs deferred | 48,173 | 35,271 | 86,304 | 73,901 |
Amortization | (41,478) | (31,090) | (81,925) | (72,892) |
Ending Balance | $ 81,590 | $ 74,064 | $ 81,590 | $ 74,064 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||||
Provision for income taxes | $ 1,110,000 | $ 368,000 | $ 4,284,000 | $ 2,737,000 | |
Annual effective tax rate | 21.20% | 33.80% | 26.70% | 26.30% | |
Uncertain tax positions | $ 0 | $ 0 | $ 0 |
Income Taxes - Components of De
Income Taxes - Components of Deferred Tax Liability (Detail) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Deferred tax assets: | ||
Unearned premiums | $ 8,274 | $ 12,585 |
Unearned commission | 8,000 | 8,671 |
Tax-related discount on loss reserve | 2,668 | 2,716 |
Stock-based compensation | 527 | 297 |
Accrued expenses | 1,987 | 757 |
Leases | 334 | 331 |
Other | 1,908 | 1,890 |
Total deferred tax asset | 23,698 | 27,247 |
Deferred tax liabilities: | ||
Deferred acquisition costs | 18,885 | 17,871 |
Prepaid expenses | 268 | 153 |
Unrealized gains | 6,090 | 2,195 |
Property and equipment | 1,176 | 1,029 |
Note discount | 404 | 478 |
Basis in purchased investments | 76 | 100 |
Basis in purchased intangibles | 16,286 | 16,977 |
Other | 1,470 | 1,067 |
Total deferred tax liabilities | 44,655 | 39,870 |
Net deferred tax liability | $ (20,957) | $ (12,623) |
Reinsurance - Additional inform
Reinsurance - Additional information (Detail) | 6 Months Ended | 12 Months Ended | |||||
Jun. 30, 2020USD ($)Reinsurer | Jun. 30, 2020USD ($)Layer | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||
Unpaid losses and loss adjustment expenses | $ 620,718,000 | $ 620,718,000 | $ 607,177,000 | $ 613,533,000 | $ 430,412,000 | $ 404,484,000 | $ 432,359,000 |
Reinsurance payable | $ 296,606,000 | 296,606,000 | $ 156,351,000 | ||||
Number of reinstatements available | Reinsurer | 2 | ||||||
Facultative Reinsurance [Member] | Maximum [Member] | |||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||
Reinsurance payable | $ 10,000,000 | $ 10,000,000 | |||||
Facultative Reinsurance [Member] | Minimum [Member] | |||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||
Facultative reinsurance purchase amount | 10,000,000 | ||||||
NBIC [Member] | General Excess of Loss 2020-2021 Reinsurance Program [Member] | |||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||
Number of layers in excess of retention loss | Layer | 2 | ||||||
Retention under program to provide reinsurance coverage | $ 400,000 | ||||||
NBIC [Member] | General Excess of Loss 2020-2021 Reinsurance Program [Member] | First Layer Coverage [Member] | |||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||
Retention under program to provide reinsurance coverage | 350,000 | ||||||
Primary retention | 400,000 | ||||||
NBIC [Member] | General Excess of Loss 2020-2021 Reinsurance Program [Member] | Second Layer Coverage [Member] | |||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||
Retention under program to provide reinsurance coverage | 2,750,000 | ||||||
Primary retention | 750,000 | ||||||
NBIC [Member] | General Excess of Loss 2020-2021 Reinsurance Program [Member] | Casualty Second Layer [Member] | |||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||
Retention under program to provide reinsurance coverage | 1,250,000 | ||||||
Primary retention | 750,000 | ||||||
NBIC [Member] | Facultative 2020 - 2021 Excess of Loss Reinsurance Program [Member] | Minimum [Member] | |||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||
Reinsurance payable | $ 3,500,000 | 3,500,000 | |||||
Commercial Residential Losses [Member] | NBIC [Member] | |||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||
Number of reinstatements available | Reinsurer | 2 | ||||||
Insurance Claims [Member] | |||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||
Unpaid losses and loss adjustment expenses | $ 1,000,000 | 1,000,000 | |||||
Insurance Claims [Member] | Commercial Residential Losses [Member] | NBIC [Member] | |||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||
Unpaid losses and loss adjustment expenses | 750,000 | 750,000 | |||||
Property Per Risk Coverage [Member] | |||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||
Coverage limit | 9,000,000 | ||||||
Reinsurance payable | 27,000,000 | 27,000,000 | |||||
Property Per Risk Coverage [Member] | Commercial Residential Losses [Member] | NBIC [Member] | |||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||
Coverage limit | 250,000 | ||||||
Reinsurance payable | $ 750,000 | $ 750,000 | |||||
Catastrophe [Member] | |||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||
Reinsurance premium, amortization period | 12 months | ||||||
Quota Share [Member] | |||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||||
Reinsurance premium, amortization period | 12 months |
Reinsurance - Catastrophe Exces
Reinsurance - Catastrophe Excess of Loss Reinsurance - Additional information - (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||
Purchase of reinsurance from third party | $ 112,735,000 | $ 115,875,000 | $ 221,445,000 | $ 234,774,000 | |
Reinsurance payable | 296,606,000 | $ 296,606,000 | $ 156,351,000 | ||
FHCF [Member] | |||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||
Percentage comprising aggregate participation | 90.00% | ||||
2020-2021 Excess of Loss Reinsurance Programs [Member] | |||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||
Reinsurance purchase limit | 2,600,000,000 | $ 2,600,000,000 | |||
Purchase of reinsurance from third party | 2,600,000,000 | ||||
Reinsurance payable | 272,100,000 | 272,100,000 | |||
2020-2021 Excess of Loss Reinsurance Programs [Member] | NBIC [Member] | First Catastrophic Event [Member] | Maximum [Member] | |||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||
Retention under program to provide reinsurance coverage | 965,000,000 | ||||
First event retention for insurance company subsidiary | 13,300,000 | 13,300,000 | |||
2020-2021 Excess of Loss Reinsurance Programs [Member] | Heritage P&C [Member] | First Catastrophic Event [Member] | Maximum [Member] | |||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||
Retention under program to provide reinsurance coverage | 1,350,000,000 | ||||
First event retention for insurance company subsidiary | 20,000,000 | 20,000,000 | |||
2020-2021 Excess of Loss Reinsurance Programs [Member] | Zephyr [Member] | First Catastrophic Event [Member] | Maximum [Member] | |||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||
Retention under program to provide reinsurance coverage | 690,000,000 | ||||
First event retention for insurance company subsidiary | $ 20,000,000 | 20,000,000 | |||
Osprey [Member] | First Catastrophic Event [Member] | Maximum [Member] | |||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||
Retention under program to provide reinsurance coverage | 41,800,000 | ||||
Osprey [Member] | First Catastrophic Event [Member] | Minimum [Member] | |||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||||
Retention under program to provide reinsurance coverage | $ 22,100,000 |
Reinsurance - Gross Quota and N
Reinsurance - Gross Quota and Net Quota Share Reinsurance - Additional information - (Detail) - NBIC [Member] - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2020 | May 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
Gross Quota Share [Member] | ||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | ||||
Percentage of gross quota share | 8.00% | |||
Reinsurance recoveries on paid losses | $ 1,000 | |||
2020-2021 Net Quota Share Reinsurance [Member] | ||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | ||||
Net lines quota share occurrence limit | $ 20 | |||
Percentage of renewed ceded net premium and losses | 56.00% | 5.00% |
Reinsurance - Aggregate Coverag
Reinsurance - Aggregate Coverage - Additional information - (Detail) $ in Thousands | Dec. 31, 2019USD ($)Reinsurer | Dec. 01, 2019USD ($) | Jun. 30, 2020USD ($)Reinsurer |
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||
Prepaid reinsurance premiums | $ 224,102 | $ 361,256 | |
Number of reinstatements available | Reinsurer | 2 | ||
Aggregate Coverage [Member] | Catastrophe [Member] | |||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||
Purchased aggregate reinstatement premium | $ 976,000 | ||
Prepaid reinsurance premiums | 621,000 | ||
Net of prepaid reinsurance premium as attachment point | $ 40,000 | ||
42.5% Aggregate Coverage [Member] | NBIC [Member] | |||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||
Aggregate contract coverage limit | $ 20,000 | ||
Primary retention | 20,000 | ||
Franchise deductible amount | $ 1,000 | ||
Aggregate contract expiration date | Mar. 31, 2020 | ||
Percentage of aggregate contract | 42.50% | ||
100.00% Aggregate Coverage [Member] | NBIC [Member] | |||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | |||
Aggregate contract coverage limit | 20,000 | ||
Primary retention | $ 20,000 | ||
Aggregate contract expiration date | Dec. 31, 2020 | ||
Percentage of aggregate contract | 100.00% | ||
Number of reinstatements available | Reinsurer | 1 |
Reinsurance - Schedule of Effec
Reinsurance - Schedule of Effect of Reinsurance Arrangements in Consolidated Statement of Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Premiums Written | ||||
Premiums Written, Direct | $ 290,432 | $ 254,840 | $ 519,534 | $ 465,188 |
Premiums Written, Ceded | (327,962) | (312,600) | (358,599) | (359,442) |
Premiums Written, Net | (37,530) | (57,760) | 160,935 | 105,746 |
Premiums Earned | ||||
Premiums Earned, Direct | 241,792 | 229,958 | 476,508 | 458,548 |
Premiums Earned, Ceded | (112,735) | (115,875) | (221,445) | (234,774) |
Net premiums earned | 129,057 | 114,083 | 255,063 | 223,774 |
Losses and Loss Adjustment Expenses | ||||
Losses and Loss Adjustment Expenses, Direct | 139,311 | 162,390 | 246,676 | 274,566 |
Losses and Loss Adjustment Expenses, Ceded | (60,442) | (88,091) | (99,626) | (138,128) |
Losses and Loss Adjustment Expenses, Net | $ 78,869 | $ 74,299 | $ 147,050 | $ 136,438 |
Reserve for Unpaid Losses And_2
Reserve for Unpaid Losses And Loss Adjustment Expenses - Summary of Reserve for Unpaid Losses And LAE (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Insurance [Abstract] | ||||
Balance, beginning of period | $ 607,177 | $ 404,484 | $ 613,533 | $ 432,359 |
Less: reinsurance recoverable on unpaid losses | 387,637 | 214,471 | 393,630 | 250,507 |
Net balance, beginning of period | 219,540 | 190,013 | 219,903 | 181,852 |
Incurred related to: | ||||
Current year | 83,822 | 75,623 | 156,153 | 138,348 |
Prior years | (4,953) | (1,324) | (9,103) | (1,910) |
Total incurred | 78,869 | 74,299 | 147,050 | 136,438 |
Paid related to: | ||||
Current year | 55,372 | 34,793 | 76,608 | 43,155 |
Prior years | 26,689 | 22,130 | 73,997 | 67,746 |
Total paid | 82,061 | 56,923 | 150,605 | 110,901 |
Net balance, end of period | 216,348 | 207,389 | 216,348 | 207,389 |
Plus: reinsurance recoverable on unpaid losses | 404,370 | 223,023 | 404,370 | 223,023 |
Balance, end of period | $ 620,718 | $ 430,412 | $ 620,718 | $ 430,412 |
Reserve for Unpaid Losses And_3
Reserve for Unpaid Losses And Loss Adjustment Expenses - Additional Information (Detail) - USD ($) $ in Thousands | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Insurance [Abstract] | ||||||
Unpaid losses and loss adjustment expenses | $ 216,348 | $ 219,540 | $ 219,903 | $ 207,389 | $ 190,013 | $ 181,852 |
Unpaid losses and loss adjustment expenses attributable to IBNR net of reinsurance recoverable | $ 160,200 | |||||
Net reserves for unpaid losses and loss adjustment expenses, percentage | 74.10% |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Detail) - USD ($) | Jul. 01, 2020 | Jan. 02, 2020 | Feb. 19, 2019 | Dec. 31, 2018 | Oct. 31, 2017 | Mar. 31, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 01, 2020 | Apr. 27, 2020 | Dec. 31, 2019 | Sep. 30, 2017 | Aug. 31, 2017 |
Debt Instrument [Line Items] | |||||||||||||
Long-term debt, net | $ 126,056,000 | $ 129,248,000 | |||||||||||
Issuance and debt discount costs | 4,156,000 | 4,857,000 | |||||||||||
Convertible notes converted into common stock | $ 4,210,000 | ||||||||||||
Payout dividends, aggregate amount | 3,476,000 | $ 3,396,000 | |||||||||||
Maximum [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Payout dividends, aggregate amount | 10,000,000 | ||||||||||||
Federal Home Loan Bank Of Atlanta [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Interest paid | 301,975 | 300,325 | |||||||||||
FHLB advance Interest rate | 3.094% | ||||||||||||
Cash loan received under advance from FHLB | $ 19,200,000 | ||||||||||||
Required fair value of reinvestment in FHLB common stock. | $ 1,400,000 | 1,400,000 | |||||||||||
Estimated fair value of collateral with FHLB | 19,400,000 | ||||||||||||
Federal Home Loan Bank Des Moines [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Required fair value of reinvestment in FHLB common stock. | 146,300 | 146,300 | |||||||||||
Federal Home Loan Bank Boston [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Required fair value of reinvestment in FHLB common stock. | $ 76,600 | 76,600 | |||||||||||
Convertible Note [Member] | Heritage Insurance Holdings, Inc. [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Repurchase of convertible notes | $ 5,800,000 | ||||||||||||
Cash consideration paid for repurchase of debt | $ 2,900,000 | ||||||||||||
Shares issued for consideration of repurchase debt | 285,201 | ||||||||||||
Convertible notes converted into common stock | $ 4,200,000 | ||||||||||||
Non-operating loss extinguishment of debt | $ 48,000 | ||||||||||||
Convertible Senior Notes [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Aggregate principal amount | $ 136,800,000 | ||||||||||||
Interest rate | 5.875% | 5.875% | |||||||||||
Investment maturity date | Aug. 1, 2037 | ||||||||||||
Interest payments term | Interest is payable semi-annually in arrears, on February 1, and August 1 of each year, commencing in 2018. | ||||||||||||
Long-term debt, net | $ 21,700,000 | ||||||||||||
Issuance and debt discount costs | 1,700,000 | ||||||||||||
Interest paid | $ 1,400,000 | 1,500,000 | |||||||||||
Senior Secured Credit Facility [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Notes maturity period | 5 years | ||||||||||||
Maximum borrowing capacity | $ 125,000,000 | ||||||||||||
Senior Secured Credit Facility [Member] | Second Amendment [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Covenant description | The Second Amendment modified the negative covenants in the Credit Agreement to permit the Company to make acquisitions and investments if, after giving effect to the acquisition or investment, either (1) the Company has an aggregate of $25.0 million in cash and availability under the revolving credit facility or (2) the consolidated leverage ratio under the Credit Agreement is at least a quarter turn less than the required ratio for the trailing four quarters. | ||||||||||||
Senior Secured Credit Facility [Member] | Term Loan Facility [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Aggregate principal amount | $ 1,900,000 | 69,400,000 | |||||||||||
Interest paid | $ 1,600,000 | 1,800,000 | |||||||||||
Maximum borrowing capacity | 75,000,000 | ||||||||||||
Principal payments in equal installments | $ 1,900,000 | ||||||||||||
Aggregate remaining principal amount | $ 65,600,000 | ||||||||||||
Effective interest rate | 4.10% | ||||||||||||
Senior Secured Credit Facility [Member] | Term Loan Facility [Member] | Subsequent Event [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Principal payments in equal installments | $ 1,900,000 | ||||||||||||
Senior Secured Credit Facility [Member] | Revolving Credit Facility [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Interest paid | $ 331,928 | 350,729 | |||||||||||
Maximum borrowing capacity | $ 50,000,000 | 50,000,000 | |||||||||||
Outstanding borrowing capacity amount | 10,000,000 | 10,000,000 | |||||||||||
Letters of credit outstanding amount | $ 0 | $ 0 | |||||||||||
Effective interest rate | 4.36% | ||||||||||||
Senior Secured Credit Facility [Member] | Revolving Credit Facility [Member] | Second Amendment [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Aggregate availability amount | $ 25,000,000 | ||||||||||||
Senior Secured Credit Facility [Member] | Standby Letters of Credit [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Maximum borrowing capacity | $ 5,000,000 | ||||||||||||
Senior Secured Credit Facility [Member] | Standby Letters of Credit [Member] | Third Amendment [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Maximum borrowing capacity | $ 40,000,000 | ||||||||||||
Senior Secured Credit Facility [Member] | Swingline Loan [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Maximum borrowing capacity | $ 10,000,000 | ||||||||||||
Collateral Financial Arrangement [Member] | Skye Lane Properties LLC [Member] | Mortgage Loan [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Aggregate principal amount | $ 12,700,000 | ||||||||||||
Interest rate | 4.95% | ||||||||||||
Investment maturity date | Oct. 30, 2027 | ||||||||||||
Frequency of periodic principal and interest payments | monthly | ||||||||||||
Payment of principal and interest | $ 446,000 | $ 446,000 | |||||||||||
Collateral Financial Arrangement [Member] | Skye Lane Properties LLC [Member] | Mortgage Loan [Member] | 5-year Treasury Security [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt instrument, basis spread on variable rate | 3.10% |
Long-Term Debt - Schedule of Co
Long-Term Debt - Schedule of Company's Debt and Credit Facilities (Detail) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Principal amount | $ 130,212 | $ 134,105 |
Less: unamortized discount and issuance costs | 4,156 | 4,857 |
Total long-term debt | 126,056 | 129,248 |
Term Loan Facility [Member] | ||
Debt Instrument [Line Items] | ||
Principal amount | 65,625 | 69,375 |
Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Principal amount | 10,000 | 10,000 |
Convertible Debt [Member] | ||
Debt Instrument [Line Items] | ||
Principal amount | 23,413 | 23,413 |
FHLB Loan Agreement [Member] | ||
Debt Instrument [Line Items] | ||
Principal amount | 19,200 | 19,200 |
Mortgage Loan [Member] | ||
Debt Instrument [Line Items] | ||
Principal amount | $ 11,974 | $ 12,117 |
Long-Term Debt - Schedule of Pr
Long-Term Debt - Schedule of Principal Payments on Long-Term Debt (Detail) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Debt Disclosure [Abstract] | ||
2020 remaining | $ 5,772 | |
2021 | 7,806 | |
2022 | 7,822 | |
2023 | 74,539 | |
2024 | 354 | |
Thereafter | 33,919 | |
Total | $ 130,212 | $ 134,105 |
Accounts Payable and Other Li_3
Accounts Payable and Other Liabilities - Schedule of Accounts Payable and Other Liabilities (Detail) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Other Liabilities Disclosure [Abstract] | ||
Deferred ceding commission | $ 34,562 | $ 37,464 |
Accounts payable and other payables | 7,767 | 7,225 |
Lease obligations | 8,371 | 8,369 |
Accrued interest and issuance costs | 829 | 1,052 |
Accrued dividends | 1,693 | 1,750 |
Other liabilities | 183 | 387 |
Commission payables | 14,708 | 14,798 |
Total other liabilities | $ 68,113 | $ 71,045 |
Statutory Accounting and Regu_2
Statutory Accounting and Regulations - Additional Information (Detail) - USD ($) | 6 Months Ended | |
Jun. 30, 2020 | Dec. 31, 2019 | |
Heritage P&C [Member] | ||
Statutory Accounting Practices [Line Items] | ||
Statutory accounting practices, capital and surplus requirements of insurance subsidiary | greater of $15 million or 10% of their respective liabilities. | |
Minimum required amount of capital and surplus maintained by the insurance subsidiary | $ 15,000,000 | |
Statutory capital and surplus requirements, percentage | 10.00% | |
Zephyr [Member] | ||
Statutory Accounting Practices [Line Items] | ||
Deposits held | $ 750,000 | |
NBIC [Member] | ||
Statutory Accounting Practices [Line Items] | ||
Statutory capital and surplus | 3,000,000 | |
Heritage P&C, Zephyr, NBIC and PIC [Member] | ||
Statutory Accounting Practices [Line Items] | ||
Statutory capital and surplus | $ 338,700,000 | $ 351,800,000 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jan. 31, 2017 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Mrs. Shannon Lucas [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Consulting fees hourly rate | $ 400 | |||||
Immediate Family Member of Management or Principal Owner [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Consulting fees | $ 93,000 | $ 71,000 | $ 117,000 | $ 173,000 | $ 344,400 | |
Heritage Property & Casualty Insurance Company and NBIC [Member] | Director [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Director annual compensation | $ 150,000 | |||||
Comegys Insurance Agency, Inc. [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Agency commission | $ 375,000 | $ 325,000 | $ 546,000 | $ 336,000 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Defined Contribution Plan Disclosure [Line Items] | ||||
Contribution for participating employees | $ 293,182 | $ 292,500 | $ 632,500 | $ 548,200 |
Defined Contribution Plan, Plan Name | 401(k) | |||
Medical premium cost | 1,100,000 | $ 958,700 | $ 2,000,000 | $ 1,800,000 |
Additional liability for unpaid claims | $ 1,400,000 | 1,400,000 | ||
Stop loss coverage per employee | 150,000 | |||
Defined contribution plan, aggregate limit for losses | $ 1,500,000 | |||
Defined contribution plan, aggregate stop loss commences threshold percentage | 125.00% | |||
Maximum [Member] | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Percentage of contribution on employee salary | 4.00% | |||
Defined contribution plan, aggregate limit for losses in provided amount | $ 1,000,000 | |||
First 3% of Employees [Member] | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Percentage of contribution on employee salary | 100.00% | |||
Next 2% of the Employees [Member] | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Percentage of contribution on employee salary | 50.00% |
Equity - Additional Information
Equity - Additional Information (Detail) - USD ($) | May 04, 2020 | Feb. 27, 2020 | Aug. 01, 2018 | Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2020 | Dec. 31, 2019 |
Class Of Stock [Line Items] | |||||||||
Common stock, shares authorized | 50,000,000 | 50,000,000 | 50,000,000 | ||||||
Preferred stock, shares authorized | 5,000,000 | 5,000,000 | |||||||
Common stock, shares outstanding | 27,738,062 | 27,738,062 | 28,650,918 | ||||||
Treasury stock, shares | 9,279,839 | 9,279,839 | 8,349,483 | ||||||
Additional paid-in capital | $ 332,037,000 | $ 332,037,000 | $ 329,568,000 | ||||||
Common stock voting rights | one vote | ||||||||
Stock repurchase program, authorized amount | $ 50,000,000 | $ 23,800,000 | $ 23,800,000 | ||||||
Stock repurchase program, expiration date | Dec. 31, 2020 | Dec. 31, 2020 | |||||||
Treasury shares repurchased, shares | 163,456 | 930,356 | |||||||
Treasury shares repurchased, value | $ 2,011,000 | $ 7,986,000 | $ 2,333,000 | $ 5,011,000 | $ 10,000,000 | ||||
Stock repurchased in connection with vesting of restricted stock unit | 17,500 | ||||||||
Stock repurchased in connection with vesting of restricted stock unit, value | $ 233,000 | ||||||||
Cash dividend per common share | $ 0.06 | $ 0.06 | |||||||
Cash dividend, payable date | Jul. 6, 2020 | Apr. 3, 2020 | |||||||
Dividend payable, record date | Jun. 15, 2020 | Mar. 16, 2020 | |||||||
Restricted Stock [Member] | |||||||||
Class Of Stock [Line Items] | |||||||||
Unvested restricted common stock issued | 330,534 | 330,534 | 345,534 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||
Apr. 30, 2020Installment$ / sharesshares | Jun. 30, 2020USD ($)$ / sharesshares | Jun. 30, 2019USD ($) | Jun. 30, 2020USD ($)$ / sharesshares | Jun. 30, 2019USD ($)shares | Dec. 31, 2019$ / shares | May 22, 2014shares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Maximum tenure of stock option from the date of grant | 10 years | ||||||
Exercisable period of vested awards | 30 days | ||||||
Minimum [Member] | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Vesting period | 1 year | ||||||
Maximum [Member] | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Vesting period | 5 years | ||||||
Restricted Stock [Member] | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Number of shares granted | 10,000 | ||||||
Number of shares vested | 7,500 | ||||||
Weighted-average grant-date fair value per share | $ / shares | $ 19.76 | $ 19.76 | $ 19.56 | ||||
Stock-based compensation expense | $ | $ 1,400,000 | $ 1,300,000 | $ 2,700,000 | $ 2,700,000 | |||
Unrecognized stock compensation expense | $ | $ 2,900,000 | $ 2,900,000 | |||||
Restricted stock vested and released | 25,000 | 25,000 | |||||
Shares withheld to cover withholding taxes | 17,500 | ||||||
Shares withheld to cover withholding taxes, value | $ | $ 233,000 | ||||||
Restricted Stock [Member] | Employee [Member] | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Vesting period | 5 years | ||||||
Restricted Stock [Member] | Minimum [Member] | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Vesting period | 2 years | ||||||
Restricted Stock [Member] | Maximum [Member] | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Vesting period | 5 years | ||||||
Restricted Stock [Member] | Employee [Member] | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Number of shares granted | 10,000 | ||||||
Number of vesting installments | Installment | 2 | ||||||
Weighted-average grant-date fair value per share | $ / shares | $ 10.60 | ||||||
Restricted Stock [Member] | Employee [Member] | Vesting on April 6, 2021 [Member] | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Number of shares vested | 5,000 | ||||||
Restricted Stock [Member] | Employee [Member] | Vesting on April 6, 2022 [Member] | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Number of shares vested | 5,000 | ||||||
Omnibus Incentive Plan [Member] | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Common stock reserved for issuance | 2,981,737 | ||||||
Shares available for grant | 1,558,518 | 1,558,518 |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Restricted Stock Activity (Detail) - Restricted Stock [Member] | 6 Months Ended |
Jun. 30, 2020$ / sharesshares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Beginning balance, Number of shares | shares | 345,534 |
Granted, Number of shares | shares | 10,000 |
Vested, Number of shares | shares | (7,500) |
Canceled and surrendered, Number of shares | shares | (17,500) |
Ending balance, Number of shares | shares | 330,534 |
Beginning balance, Weighted-Average Grant-Date Fair Value per Share | $ / shares | $ 19.56 |
Granted, Weighted-Average Grant-Date Fair Value per Share | $ / shares | 10.35 |
Vested, Weighted-Average Grant-Date Fair Value per Share | $ / shares | 13.25 |
Canceled and surrendered, Weighted-Average Grant-Date Fair Value per Share | $ / shares | 13.25 |
Ending balance, Weighted-Average Grant-Date Fair Value per Share | $ / shares | $ 19.76 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - USD ($) | Aug. 03, 2020 | May 04, 2020 | Feb. 27, 2020 | Jul. 01, 2020 |
Subsequent Event [Line Items] | ||||
Cash dividend per common share | $ 0.06 | $ 0.06 | ||
Cash dividend, payable date | Jul. 6, 2020 | Apr. 3, 2020 | ||
Dividend payable, record date | Jun. 15, 2020 | Mar. 16, 2020 | ||
Subsequent Event [Member] | ||||
Subsequent Event [Line Items] | ||||
Cash dividend, declared date | Aug. 3, 2020 | |||
Cash dividend per common share | $ 0.06 | |||
Cash dividend, payable date | Oct. 2, 2020 | |||
Dividend payable, record date | Sep. 15, 2020 | |||
Subsequent Event [Member] | Standby Letters of Credit [Member] | Regions Bank [Member] | ||||
Subsequent Event [Line Items] | ||||
Outstanding borrowing capacity amount | $ 36,000 | |||
Interest rate | 3.625% |