State National Companies 10-K 10 Mar 16 2015 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2015	Mar. 10, 2016	Jun. 30, 2015
Document and Entity Information
Entity Registrant Name	State National Companies, Inc.
Entity Central Index Key	1,610,793
Document Type	10-K
Document Period End Date	Dec. 31, 2015
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Public Float			$ 339,562,737
Entity Common Stock, Shares Outstanding		42,508,877
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	FY

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Investments:
Fixed-maturity securities – available-for-sale, at fair value (amortized cost – $327,764, $305,019, respectively)	$ 329,522	$ 309,911
Equity securities – available-for-sale, at fair value (cost – $4,796, $1,419, respectively)	5,544	2,642
Total investments	335,066	312,553
Cash and cash equivalents	51,770	38,348
Restricted cash and investments	3,717	6,597
Accounts receivable from agents, net	23,913	18,528
Reinsurance recoverable on paid losses	1,187	1,200
Deferred acquisition costs	1,075	1,036
Reinsurance recoverables	1,911,660	1,656,534
Property and equipment, net (includes land held for sale -$1,034, $1,034, respectively)	17,163	18,397
Interest receivable	2,158	1,795
Income taxes receivable	3,330
Deferred income taxes, net	26,208	23,864
Goodwill and intangible assets, net	5,958	6,683
Other assets	5,113	6,229
Total assets	2,388,318	2,091,764
Liabilities
Unpaid losses and loss adjustment expenses	1,364,774	1,209,905
Unearned premiums	585,448	480,124
Allowance for policy cancellations	59,610	55,500
Deferred ceding fees	29,119	23,612
Accounts payable to agents	2,458	2,448
Accounts payable to insurance companies	3,801	4,399
Subordinated debentures	44,500	44,500
Income taxes payable		1,762
Other liabilities	35,151	28,642
Total liabilities	2,124,861	1,850,892
Shareholders' equity
Common stock, $.001 par value (150,000,000 shares authorized; 42,699,550 and 44,247,102 shares issued at December 31, 2015 and December 31, 2014, respectively)	43	44
Additional paid-in capital	224,719	220,577
Retained earnings	37,322	16,108
Accumulated other comprehensive income	1,373	4,143
Total shareholders' equity	263,457	240,872
Total liabilities and shareholders' equity	$ 2,388,318	$ 2,091,764

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Consolidated Balance Sheets
Fixed-maturity securities - available-for-sale, amortized cost	$ 327,764	$ 305,019
Equity securities - available-for-sale, cost	4,796	1,419
Property and equipment, net - land held for sale	$ 1,034	$ 1,034
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	150,000,000	150,000,000
Common stock, shares issued	42,699,550	44,247,102
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0

Consolidated Statements of Inco

Consolidated Statements of Income - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Revenues:
Premiums earned	$ 118,068	$ 96,650	$ 84,378
Commission income	1,465	1,533	2,031
Ceding fees	67,956	45,732	32,898
Net investment income	7,948	4,841	4,901
Realized net investment gains (losses)	1,888	1,311	1,764
Other income	1,623	4,460	2,531
Total revenues	198,948	154,527	128,503
Expenses:
Losses and loss adjustment expenses	55,753	40,821	32,090
Commissions	5,502	3,882	2,378
Taxes, licenses, and fees	3,130	2,832	2,594
General and administrative	62,978	58,891	53,418
Founder special compensation		17,914	10,202
Offering-related expenses		8,833
Contract modification expense		17,800
Interest expense	2,031	2,237	2,323
Total expenses	129,394	153,210	103,005
Income (loss) before income taxes	69,554	1,317	25,498
Income taxes:
Current tax expense (benefit)	25,741	11,514	4,845
Deferred tax expense (benefit)	(853)	(21,210)	(2,058)
Total income tax expense (benefit)	24,888	(9,696)	2,787
Net income (loss)	$ 44,666	$ 11,013	$ 22,711
Net income (loss) per share attributable to common shareholders:
Basic earnings per share (in dollars per share)	$ 1.01	$ 0.28	$ 0.66
Diluted earnings per share (in dollars per share)	1.01	0.28	0.66
Dividends, per share	$ 0.14	$ 0.49	$ 0.45

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Consolidated Statements of Comprehensive Income
Net income	$ 44,666	$ 11,013	$ 22,711
Unrealized gains (losses) on securities:
Unrealized holding gains (losses) during the period	(3,416)	3,998	(5,215)
Tax effect on unrealized holding gains (losses) during the period	1,196	(1,387)	1,773
Less: reclassification adjustments for realized gains included in net income	(845)	(898)	(1,273)
Tax effect on reclassification adjustments for realized gains included in net income	295	314	430
Other comprehensive income (loss)	(2,770)	2,027	(4,285)
Total comprehensive income (loss)	$ 41,896	$ 13,040	$ 18,426

Consolidated Statements of Shar

Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands	Common stock	Additional Paid-in Capital	Retained Earnings	Treasury Stock	Accumulated Other Comprehensive Income (Loss)	Total
Balance at Dec. 31, 2013	$ 41	$ 24,367	$ 128,830	$ (10,000)	$ 2,116	$ 145,354
Increase (decrease) in shareholder's equity
Retirement of treasury stock	(7)	(9,993)		$ 10,000
Issuance of common stock	31	289,291				289,322
Costs directly attributable to issuance of common stock		(1,578)				(1,578)
Redemption of existing common stock	(21)	(190,574)				(190,595)
Stock-based compensation expense		2,012				2,012
Conversion from S corporation to C corporation tax status		107,052	(107,052)
Dividends declared			(16,683)			(16,683)
Net income			11,013			11,013
Other comprehensive income (loss), net of tax					2,027	2,027
Balance at Dec. 31, 2014	44	220,577	16,108		4,143	240,872
Increase (decrease) in shareholder's equity
Stock-based compensation expense		4,142				4,142
Dividends declared			(6,196)			(6,196)
Repurchase of common stock	(1)		(17,256)			(17,257)
Net income			44,666			44,666
Other comprehensive income (loss), net of tax					(2,770)	(2,770)
Balance at Dec. 31, 2015	$ 43	$ 224,719	$ 37,322		$ 1,373	$ 263,457

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Operating activities
Net income	$ 44,666	$ 11,013	$ 22,711
Adjustments to reconcile net income to net cash from operating activities:
Depreciation and amortization	4,173	4,993	4,717
Share-based Compensation	4,142	2,012
Bad debt expense			(14)
Deferred income taxes	(853)	(21,210)	(2,058)
Realized net investment gains	(1,888)	(1,311)	(1,764)
Realized gains on property and equipment	(107)	47	(30)
Realized gain on subordinated debenture repurchase		(610)
Changes in:
Restricted cash and investments	2,880	203	1,271
Accounts receivable from agents	(5,385)	(1,222)	(8,373)
Reinsurance recoverable on paid losses	13	(320)	41
Deferred acquisition costs	(39)	59	81
Reinsurance recoverables	(255,126)	(284,309)	(171,172)
Income taxes receivable	(5,092)	3,213	(1,740)
Interest receivable	(363)	(462)	(69)
Other assets	1,116	47	(859)
Unpaid losses and loss adjustment expenses	154,869	193,264	40,933
Unearned premiums	105,324	93,845	132,641
Allowance for policy cancellations	4,110	15,877	6,848
Deferred ceding fees	5,507	4,877	6,773
Accounts payable to agents	10	(116)	500
Accounts payable to insurance companies	(598)	(886)	1,209
Other liabilities	3,637	4,272	2,247
Other liabilities, affiliate		(100)	(37)
Net cash provided by (used in) operating activities	60,996	23,176	33,856
Investing activities
Purchase of investments	(98,856)	(170,250)	(46,836)
Proceeds from sale of investments	39,121	14,782	16,032
Proceeds from maturities and principal receipts	33,186	28,494	28,237
Proceeds from sale of short-term investments			12,490
Proceeds from maturities of short-term investments			6,495
Proceeds from dispositions of property and equipment	448	981	46
Purchase of property and equipment	(893)	(1,982)	(673)
Net cash provided by (used in) investing activities	(26,994)	(127,975)	15,791
Financing activities
Dividends paid	(6,165)	(16,683)	(15,295)
Proceeds from issuances of common stock		289,322
Costs directly attributable to issuance of common stock		(1,578)
Repurchase of common stock	(14,415)	(190,595)
Repurchase of subordinated debentures		(6,750)
Net cash provided by (used in) financing activities	(20,580)	73,716	(15,295)
Net change in cash and cash equivalents	13,422	(31,083)	34,352
Cash and cash equivalents at beginning of period	38,348	69,431	35,079
Cash and cash equivalents at end of period	51,770	38,348	69,431
Supplemental Cash Flow Information [Abstract]
Interest paid	1,980	2,269	2,277
Taxes paid	$ 30,833	$ 8,301	$ 6,584

Summary of Significant Accounti

Summary of Significant Accounting Policies	12 Months Ended
	Dec. 31, 2015
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies	1. Summary of Significant Accounting Policies Description of Business State National Companies, Inc. (the “Company”) refers to a group of companies that conduct insurance-related activities along two major segments. The Company’s Program Services segment generates fee income, in the form of ceding fees, by offering issuing carrier capacity to both specialty general agents and other producers (“GAs”), who sell, control, and administer books of insurance business that are supported by third parties that assume reinsurance risk. Substantially all of the risk associated with the Program Services segment is ceded to unaffiliated, highly rated reinsurance companies or other reinsurers that provide collateral. The Company’s Lender Services segment involves the writing and insuring of lines of insurance marketed to lending institutions, primarily collateral protection insurance (“CPI”) policies. Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”), which, as to our insurance company subsidiaries, differ from statutory accounting practices prescribed or permitted for insurance companies by insurance regulatory authorities. Estimates The preparation of financial statements in conformity with GAAP requires the Company’s management (“Management”) to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ materially from these estimates. Fair Value of Financial Instruments Cash and Cash Equivalents: The carrying amounts reported in the consolidated balance sheets approximate fair value. Restricted Cash and Investments: The carrying amounts reported in the consolidated balance sheets approximate fair value. Short-term Investments: The carrying amounts reported in the consolidated balance sheets approximate fair value. Investments : See Note 9 – “Fair Value Measurements” Land held for sale : The land held for sale is carried at fair value less expected selling costs. Payables and Receivables : Reinsurance recoverable on paid losses, reinsurance recoverables, agents’ balances receivable and payable, and payable to insurance companies are carried at cost, which approximates fair value. Subordinated Debentures: The amounts reported in the consolidated balance sheets are carried at par, which approximates their estimated fair value due to the floating interest rate provisions of the debt instruments. Income taxes receivable/payable : The carrying amounts reported in the consolidated balance sheets approximate fair value. Other assets/liabilities : The carrying amounts reported in the consolidated balance sheets approximate fair value. Cash and Cash Equivalents All highly liquid investments with an original maturity of three months or less are considered cash equivalents. Short-Term Investments Short-term investments represent liquid investments with original maturities of more than three months but less than one year. Restricted Cash and Investments Restricted cash and investments are primarily comprised of deposits made by a reinsurer that cover losses for a program up to the contractual threshold. These fiduciary cash and investment balances are invested at the direction of the reinsurer for this program; accordingly, income earned on these balances inures to the benefit of the reinsurer. Investments Investments are considered available-for-sale and are carried at fair value. The Company measures the fair value of the investments based upon quoted market prices from an independent pricing service and its third-party investment managers, using observable market information. The cost of securities sold is based on the specific identification method. Unrealized gains and losses associated with the available-for-sale portfolio, as a result of temporary changes in fair value during the period such investments are held, are reflected net of income taxes and reported in other comprehensive income as a separate component of shareholders’ equity. Unrealized losses associated with the available-for-sale portfolio that are deemed to be other-than-temporary are charged to income in the period in which the other-than-temporary impairment is determined. Debt security premiums and discounts are amortized into earnings using the effective-interest method. The Company evaluates its investment portfolio for impairments of individual securities that are deemed to be other-than-temporary. Fixed maturity securities that are determined to have other-than-temporary impairment and it is more likely than not the Company will sell before recovery of their amortized cost, are written down to fair value and the entire amount of the write-down is included in net income, net of realized investment gains. For all other impaired fixed-maturity securities, the impairment loss is separated into the amount representing the credit loss and the amount representing all other factors. The amount of impairment loss that represents the credit loss is included in net income, net of realized investment gains. The amount of the impairment loss that relates to all other factors is included in other comprehensive income. Equity securities that are determined to have other-than-temporary impairment are recognized in net income, net of realized investment gains. The process for identifying other-than-temporary declines in fair value involves the consideration of several factors, including, but not limited to, whether the issuer has been downgraded to below investment-grade, the length of time in which there has been a significant decline in value, the liquidity and overall financial condition of the issuer, the nature and performance of the collateral or other credit support backing the security, the significance of the decline in value, and whether the Company has the intent to sell the security or may be required to sell the security prior to its anticipated recovery. The Company reviews securities for other-than-temporary impairment internally and with its investment advisors. The Company invests in convertible securities that have embedded derivatives. Derivatives embedded within non-derivative instruments, such as options embedded in convertible fixed maturity securities, are bifurcated from the host instrument when the embedded derivative meets the criteria for bifurcation. However, for reporting purposes, these embedded derivatives are presented together with the host contract and carried at estimated fair value. Changes in the estimated fair value of the embedded derivatives are reflected in “Realized net investment gains” in the consolidated statements of income, while changes in the estimated fair value of the underlying fixed maturity securities are reflected in “Unrealized holding gains (losses)” in the consolidated statements of comprehensive income. Deferred Acquisition Costs Certain costs, primarily premium taxes, commissions, and general expenses that are directly related to the successful acquisition of new or renewal business are deferred to the extent recoverable from future premiums earned. Deferred acquisition costs are amortized in proportion to the related unearned premium reserve over the terms of the related policies. Investment income is not included in the Company’s recoverability analysis of deferred acquisition costs. Deferred Ceding Fees Ceding fees that are associated with unearned premiums are established as a liability and earned pro rata over the life of the underlying business. Property, Equipment, and Depreciation Property and equipment are recorded at cost and depreciated. Depreciation is computed using the straight-line method over the estimated useful lives of the assets (ranging from three to twenty years). The Company changed its capitalization threshold as of January 1, 2014 from $1 thousand to $5 thousand per item. Gains and losses on the disposition of fixed assets are determined on a specific asset identification basis and are included in net income. Land held for sale is carried at fair value less expected selling costs. Goodwill and Intangible Assets Goodwill is the difference between the purchase price in a business combination and the fair value of assets acquired and liabilities assumed, and is not amortized. Intangible assets include assets with a finite life, primarily customer relationships/lists, and are amortized over the estimated useful life of the asset in proportion to the expected benefit. Goodwill is tested for impairment on an annual basis or more frequently if events or changes in circumstances indicate that the carrying amount may not be recoverable. The impairment test is performed using a two-step process. In the first step, the fair value of a reporting unit is compared to its carrying value. If the carrying value of a reporting unit exceeds its fair value, the second step of the impairment test is performed for purposes of measuring the impairment. In the second step, the fair value of the reporting unit is allocated to all of the assets and liabilities of the reporting unit to determine an implied goodwill value. If the carrying amount of the reporting unit goodwill exceeds the implied goodwill value, an impairment loss is recognized in an amount equal to that excess. As of December 31, 2015, the Company performed the first step of its annual goodwill assessment for the individual reporting units to which goodwill is allocated and determined there is no impairment of goodwill. The Company periodically evaluates the recoverability of intangible assets and takes into account events or circumstances that warrant revised estimates of useful lives or that indicate that impairment exists. No impairments were recognized in 2015, 2014 or 2013. Unpaid Losses and Loss Adjustment Expenses The liability for unpaid losses and loss adjustment expenses (“LAE”) includes an estimate for claims reported and an additional liability for claims incurred but not reported, based on the Company’s historical loss experience. While Management believes the amounts included in the consolidated financial statements are adequate, such estimates may be more or less than the amount ultimately paid when the claims are settled. These estimates are continually reviewed and adjusted, as necessary, as experience develops or as new information becomes known; such adjustments are included in current operations. Allowance for Policy Cancellations An allowance for policy cancellations is provided for the estimated amount of return premiums and policy fees, net of commission expense and premium taxes that will be incurred on expected future policy cancellations associated with the Company’s CPI business. The allowance is based on the Company’s historical cancellation experience. While Management believes the amounts included in the consolidated financial statements are adequate, such estimates may be more or less than the amounts ultimately refunded. The estimates are continually reviewed by Management, and any changes are reflected in current operations. Reinsurance Reinsurance premiums, losses, and loss adjustment expenses are accounted for on bases consistent with those used in accounting for the original policies issued and the terms of the reinsurance contracts. Earnings Per Share The computation of earnings per share is based upon the weighted average number of common shares outstanding during the period plus the effect of common shares potentially issuable (in periods in which they have a dilutive effect). Earnings per share have been adjusted to reflect a 736 for 1 stock split in the form of a stock dividend on June 23, 2014. Income Taxes Prior to June 25, 2014, the Company had elected for its parent company to be taxed for federal income tax purposes as a “Subchapter S corporation” under the Internal Revenue Code. On June 25, 2014, the Company completed a private placement of common stock, which resulted in the termination of its Subchapter S corporation status. Prior to this change in tax status, deferred income taxes were recorded only on the Company’s insurance subsidiaries (and their immediate parent) to reflect the tax consequences on future years of differences between the tax bases of assets and liabilities and their financial reporting amounts at each year-end. Prior to June 25, 2014 all other entities included in the consolidated group filed under Subchapter S Corporation status; therefore, no provision for income taxes had been recorded for these entities. On June 25, 2014 the Company recorded a net deferred income tax benefit related to this change in tax status to reflect the tax consequences on future years of differences between the tax bases of assets and liabilities and their financial reporting amounts. For any uncertain tax positions not meeting the “more likely than not” recognition threshold, accounting standards require recognition, measurement, and disclosure in the financial statements. There were no uncertain tax positions at December 31, 2015 and December 31, 2014. Income Recognition Premiums on CPI business are earned on a pro rata basis over the terms of the policies after taking into consideration the allowance for policy cancellations. Premiums on Program Services business are earned on a pro rata basis over the terms of the policies. Ceding fees are earned on the same basis as the underlying premiums. Program Services In connection with writing Program Services business, the Company enters into contractual agreements with both the producing general agents and the reinsurers, whereby the general agents and reinsurers are obligated to each other for payment of insurance amounts, including premiums, commissions, and losses. These funds do not flow through the Company, but are settled directly between the general agent and the reinsurer; accordingly, no receivables or payables are recorded for these amounts. All obligations of SNIC, NSIC, and USIC owed to or on behalf of their policyholders are recorded by the Company and, to the extent appropriate, offsetting reinsurance recoverables are recorded. Minimum Ceding Fees Minimum ceding fees are fees the Company receives pursuant to contractual minimum premium requirements for certain programs where either significant premium capacity is reserved for that program or where the expected premium volume is not reasonably assured. For those programs where a minimum applies, the ceding fees are considered as two distinct pieces: 1) “premium related fees,” which are earned as the associated gross written premium is earned, typically pro rata on an annual basis; and (2) “capacity fees,” which are determined based on the shortfall, if any, between the program’s contractual annual premium minimum and the amount of premium estimated to be written in the contract year, which fees are earned over the contract year. Minimum ceding fees earned are based on estimates of annual premiums to be written for those programs that are subject to minimum premium levels and related ceding fees. These estimates are based upon various assumptions made regarding the production plans for the underlying program. These assumptions are reviewed by Management and the amount of annual premiums expected to be written are re-estimated as needed. As actual premiums emerge and revisions are made to earlier estimates, minimum ceding fees are earned or reversed and are reflected in current operations. Stock-based Compensation Compensation expense for stock-based payments is recognized based on the measurement-date fair value for awards that will settle in shares. Compensation expense for awards that are settled in equity are recognized on a straight line pro rata basis over the vesting period. See Note 15 — “Stock-based Payments” for related disclosures. Recent Accounting Pronouncements In May 2014, the FASB issued an accounting standards update (ASU 2014-09), “Revenue from Contracts with Customers” (Topic 606). The core guidance of the ASU presents a comprehensive revenue recognition model that requires a company to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. The ASU provides a five-step analysis of transactions to determine when and how revenue is recognized and requires additional disclosures sufficient to describe the nature, amount, timing and uncertainty of revenue and cash flows for these transactions. In August 2015, the FASB issued ASU 2015-14 to defer the effective date to annual reporting periods beginning after December 15, 2017, including interim reporting periods within that period. Earlier application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. As insurance contracts are excluded from this ASU, the Company is currently evaluating what impact, if any, this ASU will have on financial results and disclosures and which adoption method to apply. In June 2014, the FASB issued an accounting standards update (ASU 2014-12), “Compensation – Stock Compensation” (Topic 718). The main provision of this ASU requires that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. Compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered. If the performance target becomes probable of being achieved before the end of the requisite service period, the remaining unrecognized compensation cost should be recognized prospectively over the remaining requisite service period. This ASU is effective for annual reporting periods beginning after December 15, 2015 and interim periods within those annual periods. The Company awarded performance based stock compensation on March 30, 2015. The Company expects the impact of this pronouncement to be minimal. In April 2015, the FASB issued an accounting standards update (ASU 2015-03), “Interest – Imputation of Interest” (Topic 835). The new guidance requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The guidance in ASU 2015-03 does not address presentation or subsequent measurement of debt issuance costs related to line-of-credit arrangements. The FASB therefore issued ASU 2015-15 “Interest—Imputation of Interest (Subtopic 835-30): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements,” which clarified that the SEC staff would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. For public business entities, the guidance is effective for annual and interim periods beginning after December 15, 2015. Early adoption is permitted. The Company does not plan to early adopt and expects the impact of this pronouncement to be minimal. In May 2015, the FASB issued an accounting standards update (ASU 2015-09), “ Disclosures about Short-Duration Contracts” (Topic 944) intended to make targeted improvements to disclosure requirements for insurance companies that issue short-duration contracts. The amendments in this update are expected to increase transparency of significant estimates made in measuring those liabilities, improve comparability by requiring consistent disclosure of information, and provide financial statement users with additional information to facilitate analysis of the amount, timing, and uncertainty of cash flows arising from contracts issued by insurance entities and the development of loss reserve estimates. This ASU will be effective for annual periods beginning after December 15, 2015, and interim periods within annual periods beginning after December 15, 2016. The Company is currently evaluating what impact this ASU will have on disclosures. In June 2015, the FASB issued an accounting standards update (ASU 2015-10), “Technical Corrections and Improvements.” The amendments in this update represent changes to clarify the codification, correct unintended application of guidance, or make minor improvements to the codification that are not expected to have a significant effect on current accounting practice or create a significant administrative cost to most entities. Additionally, some of the amendments will make the codification easier to understand and easier to apply by eliminating inconsistencies, providing needed clarifications, and improving the presentation of guidance in the codification. This ASU will be effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted. The Company does not plan to early adopt and expects the impact of this pronouncement to be minimal.

Investments

Investments	12 Months Ended
	Dec. 31, 2015
Investments
Investments	2. Investments The following table summarizes information on the amortized cost, gross unrealized gains and losses, and the fair value of investment securities by class: Cost or Gross Gross December 31, 2015 Amortized Unrealized Unrealized Fair ($ in thousands) Cost Gains Losses Value Fixed-maturity securities Government $ $ $ $ Government agency State and municipality Industrial and miscellaneous Residential mortgage-backed Commercial mortgage-backed Redeemable preferred stock Total fixed-maturity securities Equity securities Non-redeemable preferred stock Common stock Total equity securities Total investments $ $ $ $ Cost or Gross Gross December 31, 2014 Amortized Unrealized Unrealized Fair ($ in thousands) Cost Gains Losses Value Fixed-maturity securities Government $ $ $ $ Government agency State and municipality Industrial and miscellaneous Residential mortgage-backed Commercial mortgage-backed Redeemable preferred stock — Total fixed-maturity securities Equity securities Non-redeemable preferred stock — Common stock — Total equity securities — Total investments $ $ $ $ Investment securities are exposed to various risks such as interest rate, market, and credit risk. Fair values of securities fluctuate based on the magnitude of changing market conditions; significant changes in market conditions could materially affect the portfolio fair value in the near term. The following tables show the gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position: Less than 12 Months 12 Months or More Total December 31, 2015 Fair Unrealized Fair Unrealized Fair Unrealized ($ in thousands) Value Losses Value Losses Value Losses Fixed-maturity securities Government $ $ $ $ $ $ Government agency — — State and municipality Industrial and miscellaneous Residential mortgage-backed Commercial mortgage-backed Redeemable preferred stock Total fixed-maturity securities $ $ $ $ $ $ Equity securities Non-redeemable preferred stock — — Common stock — — Total equity securities — — $ $ $ $ $ $ Less than 12 Months 12 Months or More Total December 31, 2014 Fair Unrealized Fair Unrealized Fair Unrealized ($ in thousands) Value Losses Value Losses Value Losses Fixed-maturity securities Government $ $ $ $ $ $ Government agency — — State and municipality Industrial and miscellaneous Residential mortgage-backed Commercial mortgage-backed Total fixed-maturity securities $ $ $ $ $ $ The determination that a security has incurred an other-than-temporary decline in fair value and the associated amount of any loss recognition requires the judgment of Management and a continual review of its investments. Management reviewed all securities with unrealized losses in accordance with the Company’s impairment policy described in Note 1 — “Summary of Significant Accounting Policies”. Management believes that the temporary impairments are primarily the result of interest rate fluctuations, current conditions in the capital markets, and the impact of those conditions on market liquidity and prices. There are 237 securities in an unrealized loss position at December 31, 2015. Over 87% of these investments are investment-grade at December 31, 2015. The Company does not intend to sell the securities, and it is not more likely than not that the Company will be required to sell these securities before recovery of their amortized cost. Management has the intent and ability to hold the equity securities in an unrealized loss position until the recovery of their fair value. Therefore, Management does not consider these investments to be other-than-temporarily impaired at December 31, 2015. Proceeds from sales of investments in fixed-maturity, equity and short-term securities during 2015, 2014, and 2013 were $ 39.1 million, $14.8 million, and $16.0 million respectively. The following table presents the Company’s gross realized gains (losses) for the periods ended December 31: Year Ended December 31, December 31, December 31, ($ in thousands) 2015 2014 2013 Realized gains: Fixed-maturity securities $ $ $ Equity securities Gross realized gains Realized losses: Fixed-maturity securities Equity securities — Other-than-temporary impairment losses on fixed-maturity securities — Gross realized losses Net realized investment gains (losses) $ $ $ The Company had eleven and ten non-cash exchanges of investment securities for each of the periods ending December 31, 2015 and December 31, 2014, respectively. Non-cash consideration received for these exchanges was $4.9 million and $2.8 million in 2015 and 2014, respectively. Gains of $33 thousand and $320 thousand were recognized on these exchanges and are reflected in the “Realized net investment gains” balance shown on the consolidated statements of income. The following schedule details the maturities of the Company’s fixed-maturity securities, available-for-sale, as of December 31, 2015: Fair ($ in thousands) Amortized Cost Value Due in one year or less $ $ Due after one year through five years Due after five years through ten years Due after ten years Residential mortgage-backed securities Commercial mortgage-backed securities $ $ Expected maturities may differ from contractual maturities because certain borrowers have the right to call or prepay obligations with or without call or prepayment penalties. The Company’s investment portfolio includes approximately $1.0 million of mortgage-backed securities collateralized by subprime residential loans, which represent approximately 0.31% of the Company’s total investments as of December 31, 2015. The Company does not own mortgage derivatives. Net investment income for the periods ended December 31, consists of the following: Year Ended December 31, December 31, December 31, ($ in thousands) 2015 2014 2013 Interest on investments $ $ $ Dividends Gross investment income Investment expenses Net investment income $ $ $ The Company’s insurance subsidiaries, State National Insurance Company, Inc. (“SNIC”), National Specialty Insurance Company (“NSIC”) and United Specialty Insurance Company (“USIC”) are required to maintain deposits in various states where they are licensed to operate. These deposits are comprised of fixed-maturity securities at fair values totaling $53.5 million and $36.9 million at December 31, 2015 and December 31, 2014, respectively. The Company holds convertible securities with embedded derivatives. The embedded derivative is bifurcated from the host contract if all of the following criteria are met: the combined instrument is not accounted for in its entirety at fair value with changes in fair value recorded in earnings; the terms of the embedded derivative are not clearly and closely related to the economic characteristics of the host contract; and a separate instrument with the same terms as the embedded derivative would qualify as a derivative instrument. These embedded derivatives are presented together with the host contract and carried at estimated fair value. Changes in the estimated fair value of the embedded derivatives are reflected in “Realized net investment gains” in the consolidated statements of income, while changes in the estimated fair value of the underlying fixed maturity securities are reflected in “Unrealized holding gains (losses) in the consolidated statements of comprehensive income. Net gains recognized in the consolidated statements of income related to embedded derivatives were $1.8 million for the year ended December 31, 2015.

Deferred Acquisition Costs

Deferred Acquisition Costs	12 Months Ended
	Dec. 31, 2015
Investments
Deferred Acquisition Costs	3. Deferred Acquisition Costs Certain costs, primarily premium taxes, commissions, and general expenses that are directly related to the successful acquisition of new or renewal business are deferred to the extent recoverable from future premiums earned. Deferred acquisition costs are amortized in proportion to the related unearned premium reserve over the terms of the related policies. Deferred acquisition costs are as follows for the years ended December 31: ($ in thousands) 2015 2014 2013 Balance, beginning of year $ $ $ Capitalized costs Amortization Balance, end of year $ $ $

Property, Equipment, and Deprec

Property, Equipment, and Depreciation	12 Months Ended
	Dec. 31, 2015
Investments
Property, Equipment, and Depreciation	4. Property, Equipment, and Depreciation The following is a summary of property, equipment, and depreciation at December 31: ($ in thousands) 2015 2014 Land held for use $ $ Land held for sale Building and improvements Transportation equipment Furniture and fixtures Computer equipment and software Accumulated depreciation and amortization Property and equipment, net $ $ Depreciation and amortization expense for 2015, 2014 and 2013 was $1. 8 million, $1.8 million and $1.9 million, respectively. The Company purchased a tract of land in 2007 with a plan to build a new home office building for its own use. During 2009, the Company classified this land as held for sale, since it had abandoned its plan to build a new home office and purchased an existing building for its own use. Gains of $107 thousand, $454 thousand and $30 thousand were recognized at December 31, 2015, 2014 and 2013, respectively, from the sale of property and equipment.

Goodwill and Intangible Assets

Goodwill and Intangible Assets	12 Months Ended
	Dec. 31, 2015
Goodwill and Intangible Assets
Goodwill and Intangible Assets	5. Goodwill and Intangible Assets ($ in thousands) Gross Carrying Amount Accumulated Amortization Net Carrying Amount December 31, 2015 Goodwill $ $ — $ Customer relationships/lists $ $ $ December 31, 2014 Goodwill $ $ — $ Customer relationships/lists Non-compete agreements — $ $ $ As of December 31, 2015 and 2014, goodwill of $2.1 million is attributable to our Program Services segment and $450 thousand is attributable to the Lender Services segment. Definite-lived intangible assets total $3.4 million and $4.1 million, net of amortization, as of December 31, 2015 and 2014, respectively, and are fully attributable to our Lender Services segment. Customer relationships/lists are amortized based on discounted cash flow estimates over their expected useful lives of 15 years. Amortization expense related to the customer relationships/lists was $725 thousand, $765 thousand, and $854 thousand for the years ended December 31, 2015, 2014, and 2013, respectively. The non-compete agreements were amortized based on the discounted cash flow estimates over their expected useful lives of five to nine years. Amortization expense related to the non-compete agreements was zero , $458 thousand, and $481 thousand for the years ended December 31, 2015, 2014, and 2013, respectively. Expected amortization expense over the next five years for the Company’s definite-lived intangible assets is as follows: 2016 – $720 thousand; 2017 – $682 thousand; 2018 – $637 thousand; 2019 – $256 thousand; and 2020 – $243 thousand.

Subordinated Debentures

Subordinated Debentures	12 Months Ended
	Dec. 31, 2015
Investments
Subordinated Debentures	6. Subordinated Debentures Between 2002 and 2004, the Company formed four business trusts (the “Trusts”) for the sole purpose of issuing, in private placement transactions, $52 million of trust preferred securities (“TPS”). In turn, the Trusts then used the proceeds thereof, together with the equity proceeds received from the Company upon their initial formation, to purchase $53.6 million of variable-rate subordinated debentures (“TPS Debentures”) issued by the Company. All voting securities of the Trusts are owned by the Company, and the TPS Debentures are the sole assets of the Trusts. The Trusts meet the obligations of the TPS with the interest and principal paid on the TPS Debentures. The Company does not have a variable interest in the Trusts and therefore does not consolidate the Trusts. Subordinated debentures with a carrying value of $7.5 million were repurchased for $6.75 million (plus accrued interest of approximately $49 thousand) on October 8, 2014. The debentures were issued on May 15, 2003 with an original maturity of May 15, 2033. This transaction resulted in a gain of approximately $610 thousand after deducting the unamortized portion of the initial issuance costs from the difference in the par value and the purchase price. The following is a summary of the TPS Debentures at December 31: ($ in thousands) 2015 2014 Floating Rate Capital Securities at LIBOR plus 4.00% , issued December 4, 2002, maturing on December 4, 2032 $ $ Floating Rate Capital Securities at LIBOR plus 4.10% , issued December 16, 2003, maturing on January 8, 2034 Floating Rate Capital Securities at LIBOR plus 3.80% , issued May 26, 2004, maturing on May 24, 2034 $ $ The TPS Debentures and the TPS are uncollateralized, do not require maintenance of minimum financial covenants, and carry nearly identical terms. The TPS mature based on the schedule above, but early redemption is allowed beginning five years after issue date. If the Company chooses to redeem before the stated maturity date, it must redeem on a normal quarterly interest payment date and in multiples of $1 thousand (and include accrued interest). Interest is payable quarterly (see rates above) and set and paid quarterly. The three-month LIBOR rate at December 31, 2015, was 0.61% . Payment of interest may be deferred for up to 20 consecutive quarters; however, the Company may not declare or pay any dividends or distributions, nor make any guarantee payments or payments on fixed-maturity securities, unless senior in interest to the TPS Debentures. These same limitations apply during an event of default. Debt issuance costs paid to placement agents with an initial cost of $1.3 million are included in the consolidated financial statements in other assets, net of accumulated amortization of $529 thousand and $486 thousand at December 31, 2015 and 2014, respectively. The debt issuance costs are being amortized over 30 years using the straight-line method, which approximates the effective interest method. The Company, through a subsidiary, has guaranteed that amounts paid to the Trusts under the TPS Debentures will be remitted to the holders of the TPS. These guarantees, when taken together with the obligations of the Company under the TPS Debentures, the indentures pursuant to which those debentures were issued, and the related trust agreements (including obligations to pay related trust costs, fees, expenses, debt, and other obligations for the Trusts other than with respect to the common and trust preferred securities of the Trusts), provide a full and unconditional guarantee of amounts due on the TPS.

Income Tax Provision

Income Tax Provision	12 Months Ended
	Dec. 31, 2015
Income Taxes
Income Tax Provision	7. Income Tax Provision The shareholders previously consented to elections for certain entities in the Company to be treated as S Corporations under Internal Revenue Code Section 1362(a). As a result of these elections, 2013 federal income taxes are recorded only for State National Intermediate Holdings, Inc. (“SNIH”), SNIC, NSIC and USIC, as they remained C Corporations and filed a consolidated federal income tax return. On June 25, 2014, the Company completed a private placement of common stock which resulted in termination of its S Corporation status. As a result, the Company is taxed as a C Corporation and filed a consolidated short period federal income tax return with its subsidiaries for the period June 26 through December 31, 2014. Income for the Company’s pass-through entities was taxed (for federal purposes) to the individual owners during 2013 and the short period January 1 through June 25, 2014. The Company recorded a net deferred income tax benefit of $ 19.3 million related to this change in tax status. The components of income tax expense for the years ended December 31 are as follows ($ in thousands) : 2015 ($ in thousands) Federal State Total Federal and state income tax expense (benefit) Current $ $ $ Deferred Total income tax expense (benefit) $ $ $ 2014 ($ in thousands) Federal State Total Federal and state income tax expense (benefit) Current $ $ $ Deferred Total income tax expense (benefit) $ $ $ 2013 ($ in thousands) Federal State Total Federal and state income tax expense (benefit) Current $ $ $ Deferred — Total income tax expense (benefit) $ $ $ Deferred income taxes reflect the effect of temporary differences between the financial statement carrying amounts and the tax bases of assets and liabilities. The components of the net deferred income tax asset are as follows at December 31: ($ in thousands) 2015 2014 Deferred income tax assets: Allowance for policy cancellations $ $ Unpaid losses and loss adjustment expenses Deferred ceding fees Management fee Compensation Intangible assets Unrealized losses on fixed maturities and other investment securities Write-down of other-than-temporarily impaired investment securities Other Total deferred income tax assets Deferred income tax liabilities: Unearned premiums Unrealized gains on equity securities Unrealized gains on fixed maturities and other investment securities Deferred acquisition costs Fixed assets Other Total deferred income tax liabilities Net deferred income tax asset $ $ No valuation allowance was recorded at December 31, 2015 and 2014, as the temporary differences disclosed above relate to deferred income tax assets that are more-likely-than-not to be realized in future years. In the second quarter of 2014, the Company revised its provision for income taxes to reflect a change in the federal statutory rate from 34.3% to 35.0% , effective January 1, 2014. During 2013 the Company computed its income tax provision using a 34.3% federal statutory tax rate as its taxable income was within the graduated rates of 34.0% to 35.0%. A reconciliation of federal income tax expense computed by applying the federal statutory tax rate to income before federal income tax expense for the periods ended December 31 follows: 2015 2014 2013 Effective Effective Effective ($ in thousands) Amount Tax Rate Amount Tax Rate Amount Tax Rate Expected tax expense (benefit) $ % $ % $ % Exclusion of Subchapter S income — — Change in tax status — — (19,316) — — Change in federal statutory rate — — — — Accrual/adjustment prior year Tax-exempt income State income taxes Meals and entertainment Other — — Total income tax expense $ % $ % $ % The Company recognizes interest and penalties related to uncertain tax positions in general and administrative expenses. There were no uncertain tax positions at December 31, 2015. The Company had no net operating loss or capital loss carry-forwards at December 31, 2015 . As of December 31, 2015, the Company’s U.S. federal income tax returns for tax years that ended December 31, 2012 through December 31, 2014, remain open under the normal three year statute of limitations and, therefore, are subject to examination by the Internal Revenue Service.

Reinsurance

Reinsurance	12 Months Ended
	Dec. 31, 2015
Reinsurance
Reinsurance	8. Reinsurance Through unaffiliated general agents, SNIC, NSIC, and USIC write primarily commercial lines of business. This business is written and reinsured pursuant to quota share and excess of loss reinsurance contracts and general agency agreements that are tripartite agreements executed by SNIC, NSIC, or USIC, the reinsurer, and the general agent. Substantially all of the risk associated with this business is borne by the reinsurer. As compensation for writing this business, SNIC, NSIC, and USIC receive ceding fees from the general agents and, accordingly, the related ceding fees receivable are reflected as accounts receivable from agents. If the general agent defaults on its obligation to pay these commissions (or any other amount due), the reinsurer is obligated to make the payment under the guarantee contained in the contracts. SNIC and NSIC write business in the Lender Services segment through an affiliated general agent. The Company is party to a reinsurance agreement in which it cedes a percentage of certain CPI policies to CUMIS Insurance Society, Inc. (“CUNA Mutual”) and receives a ceding commission related to these policies. On May 19, 2014, the company signed an amendment to alter certain provisions of the July 24, 2009 Alliance with CUNA Mutual. The amendment, effective July 1, 2014, reduces CUNA Mutual’s quota share under the reinsurance agreement from 50% to 30% for all policies written on or after July 1, 2014 (see Note 18 – Commitments and Contingencies). SNIC, NSIC, and USIC remain liable for unearned premiums and unpaid losses and LAE with respect to reinsurance ceded should the reinsurer be unable to meet its obligations. Management considers the possibility of a reinsurer becoming unable to meet its obligations as remote due to the reinsurers’ financial stability, A.M. Best Company rating, size, collateral held, and other factors as appropriate. Following is a summary of these balances: December 31, December 31, ($ in thousands) 2015 2014 Ceded unearned premiums $ $ Ceded loss and loss adjustment expense reserves Total reinsurance recoverables Secured reinsurance recoverables Unsecured reinsurance recoverables $ $ The fair value of the collateral held by SNIC, NSIC and USIC is approximately 177% of the secured reinsurance recoverables as of December 31, 2015.

Fair Value Measurements

Fair Value Measurements	12 Months Ended
	Dec. 31, 2015
Fair Value Measurements
Fair Value Measurements	9. Fair Value Measurements Assets and liabilities reported in the consolidated financial statements at fair value are required to be classified according to a fair value hierarchy that prioritizes the use of inputs used in valuation methodologies into three levels. The hierarchy gives the highest ranking to fair values determined using unadjusted quoted prices in active markets for identical assets and liabilities (Level 1) and the lowest ranking to fair values determined using methodologies and models with unobservable inputs (Level 3). An asset’s or liability’s classification is based on the lowest level input that is significant to its measurement. For example, a Level 3 fair value measurement may include inputs that are both observable (Level 1 and 2) and unobservable (Level 3). The levels of the fair value hierarchy are as follows: · Level 1: Inputs are quoted prices for identical assets or liabilities in active markets that are accessible at the measurement date. · Level 2: Inputs include quoted prices for similar assets or liabilities in active markets, quoted prices from those willing to trade in markets that are not active, or other inputs that are observable or can be corroborated by market data for the term of the instrument. These inputs include market interest rates and volatilities, spreads, and yield curves. · Level 3: Inputs are unobservable. Unobservable inputs reflect the Company’s own assumptions about the assumptions market participants would use in pricing the asset or liability based on the best information available in the circumstances. A description of the Company’s valuation techniques used to measure its assets at fair value is as follows: · Available-for-sale, fixed-maturity securities: All fixed-maturity investments are currently reported at fair value utilizing Level 2 inputs. For these securities, the Company obtains fair value measurements from either an independent pricing service using quoted prices or from its third-party investment managers. These Level 2 inputs are valued by either the pricing service or the investment managers utilizing observable data that may include dealer quotes, market spreads, cash flows, yield curves, live trading levels, trade execution data, market consensus, prepayment speeds, credit information, and the security’s terms and conditions, among other things. · Available-for-sale equity securities: Equity securities are reported at fair value utilizing Level 2 inputs. For these securities, the Company obtains fair value measurements from an independent pricing service using quoted prices or from its third-party investment managers. These Level 2 inputs are valued by either the pricing service or the investment managers utilizing observable data that may include dealer quotes, market spreads, cash flows, yield curves, live trading levels, trade execution data, market consensus, prepayment speeds, credit information, and the security’s terms and conditions, among other things. · Embedded derivatives: The Company invests in convertible securities that have embedded derivatives. Embedded derivatives are recorded at estimated fair value with changes in estimated fair value reported in the consolidated statements of net income. The estimated fair value of the embedded derivatives is calculated by the Company’s third-party investment managers using observable inputs. Management has reviewed the processes used by the pricing services and has determined that they result in fair values consistent with requirements for Level 2 investment securities. Based on an analysis of the inputs, the Company’s investments measured at fair value on a recurring basis have been categorized as follows: December 31, 2015 ($ in thousands) Level 1 Level 2 Level 3 Total Fixed-maturity securities Government $ — $ $ — $ Government agency — — State and municipality — — Industrial and miscellaneous — — Residential mortgage-backed — — Commercial mortgage-backed — — Redeemable preferred stock — — Total fixed-maturity securities — — Equity securities Non-redeemable preferred stock — — Common stock — — Total equity securities — — Total investments $ — $ $ — $ December 31, 2014 ($ in thousands) Level 1 Level 2 Level 3 Total Fixed-maturity securities Government $ — $ $ — $ Government agency — — State and municipality — — Industrial and miscellaneous — — Residential mortgage-backed — — Commercial mortgage-backed — — Redeemable preferred stock — — Total fixed-maturity securities — — Equity securities Non-redeemable preferred stock — — Common stock — — Total equity securities — — Total investments $ — $ $ — $ At December 31, 2015, the fair value of embedded derivatives included in Level 2 securities was $8.6 million. There was no Level 3 activity including gains or losses recognized purchases, or sales transaction during the periods ending December 31, 2015 and December 31, 2014. Transfers between levels are recognized at the end of the reporting period. There were no transfers between Level 1, Level 2, and Level 3 at December 31, 2015 and December 31, 2014.

Premiums Earned

Premiums Earned	12 Months Ended
	Dec. 31, 2015
Investments
Premiums Earned	10. Premiums Earned Premiums earned consist of the following for the years ended December 31: ($ in thousands) 2015 2014 2013 Premiums written $ $ $ Premiums assumed Premiums ceded Net premiums retained Change in net unearned premiums Total premiums earned $ $ $ Premiums assumed as a % of net premiums retained % % % Premiums written for CPI include an allowance for return premiums and policy fees related to expected future policy cancellations. Original estimates are adjusted as the policies develop and additional information becomes known regarding actual cancellation rates.

Losses and Loss Adjustment Expe

Losses and Loss Adjustment Expenses	12 Months Ended
	Dec. 31, 2015
Investments
Losses and Loss Adjustment Expenses	11. Losses and Loss Adjustment Expenses Losses and loss adjustment expenses consist of the following for the years ended December 31: ($ in thousands) 2015 2014 2013 Direct losses and loss adjustment expenses $ $ $ Assumed losses and loss adjustment expenses Ceded losses and loss adjustment expenses Total net losses and loss adjustment expenses $ $ $ Activity in the liability for unpaid losses and loss adjustment expenses at December 31, is summarized as follows: ($ in thousands) 2015 2014 2013 Balance at January 1, $ $ $ Reinsurance recoverables Net balance at January 1, Incurred related to: Current year Prior year Total incurred Paid related to: Current year Prior year Total paid Net balance at December 31, Reinsurance recoverables Balance at December 31, $ $ $ The estimate for ultimate losses incurred on a net basis related to prior years increased by $1.8 million in 2015, decreased by $0.5 million in 2014 and decreased by $1.1 million in 2013 . The unfavorable development in 2015 is primarily related to reserve strengthening on run-off programs in our Program Services segment ( $2.0 million ) . The favorable development in 2014 is primarily due to $706 thousand of favorable development in our Lender Services segment. The favorable development in 2013 is primarily due to $1.5 million of favorable development in our Lender Services segment, partially offset by unfavorable development of $0.4 million in our Program Services segment. All of these changes were the result of the re-estimation of unpaid losses and LAE due to ongoing analyses of recent loss development trends as new data becomes available. We had no significant changes in reserving assumptions or methodologies.

Statutory Accounting

Statutory Accounting	12 Months Ended
	Dec. 31, 2015
Investments
Statutory Accounting	12. Statutory Accounting A reconciliation of the Company’s insurance subsidiaries’ (SNIC, NSIC, and USIC) shareholders’ equity and net income as of and for the years ended December 31 from Statutory Accounting Principles (SAP) to GAAP is as follows: ($ in thousands) 2015 2014 Shareholders’ equity (insurance subsidiaries only): Per statutory basis $ $ Adjustments for: Allowance for return commissions Allowance for policy cancellations Commissions payable Deferred acquisition costs Deferred income taxes Unrealized gain on investments available-for-sale Management fees Intangible assets Nonadmitted assets — Convertible securities — Other — Shareholders’ equity in accordance with GAAP $ $ ($ in thousands) 2015 2014 2013 Net income (insurance subsidiaries only): Per statutory basis $ $ $ Adjustments for: Allowance for return commissions Allowance for policy cancellations Commission expense Deferred acquisition costs Deferred income taxes Management fees Convertible securities — — Other Net income in accordance with GAAP $ $ $ At December 31, 2015 and 2014, the amount of statutory capital and surplus for the consolidated insurance subsidiaries was $229.8 million and $215.8 million , respectively. At December 31, 2015 and 2014, minimum statutory capital and surplus required for SNIC, NSIC, and USIC was $5.0 million, $5.0 million and $750 thousand, respectively. The Texas Department of Insurance (the “Department”) requires approval for dividends from insurance subsidiaries that exceed statutory guidelines. The maximum dividend that may be paid without prior approval of the Commissioner of Insurance is limited to the greater of 10% of statutory surplus at the end of the preceding calendar year or the statutory net income of the preceding calendar year. At December 31, 2015, unrestricted net assets available for dividends were $23.0 million. The Company is required to comply with the NAIC’s Risk-Based Capital (“RBC”) requirements. Under the RBC standards, risks specific to the Company in such areas as asset risk, insurance risk, interest rate risk, and business risk are evaluated and compared to the Company’s capital and surplus to determine solvency margins. In its calculation of risk-based capital for SNIC and NSIC, the Company has deducted amounts for which it holds collateral (either trust funds in the name of the Company or irrevocable letters of credit) for amounts recoverable from reinsurance companies. The Company believes this practice to be appropriate because the credit risk for the related reinsurance balances is virtually eliminated due to the protection provided by the collateral. This practice differs from NAIC annual statement instructions. There is no monetary effect on net income or statutory surplus from the use of this practice. If the Company had not used this practice, the RBC calculations would not have resulted in a regulatory event in 2015 or 2014. At periodic intervals, the Department routinely examines the insurance subsidiaries’ statutory financial statements as part of its legally prescribed oversight of the insurance industry. Based on these examinations, regulators can direct that the statutory-basis financial statements be adjusted in accordance with their findings. The Texas Department of Insurance completed its examination of the December 31, 2006 through December 31, 2010, statutory-basis financial statements of NSIC and SNIC in 2012, with no significant findings reported. The Delaware Insurance Department also completed its examination of the December 31, 2006 through December 31, 2010, statutory-basis financial statements of USIC in 2012, with no significant findings reported. These insurance departments have notified the Company of their intent to examine the insurance subsidiaries’ statutory-basis financial statements as of December 31, 2015 .

Related-Party Transactions

Related-Party Transactions	12 Months Ended
	Dec. 31, 2015
Related Party Transactions
Related-Party Transactions	13. Related-Party Transactions The accompanying consolidated financial statements include transactions with a former affiliate, Trace Air, Inc. The Company was party to an aircraft lease with a term expiring in 2020. Pursuant to the lease agreement, the Company leased the aircraft at a rate of $1,800 per hour of use, subject to a minimum monthly lease rate of $36 thousand. In addition, the Company was responsible for operating and maintenance costs associated with the aircraft. Under this agreement, we made aggregate payments to Trace Air, Inc. of zero , $359 thousand, and $692 thousand in 2015, 2014, and 2013, respectively. This lease agreement was terminated following the completion of the private placement of company stock (See Note 20 — “Common Stock”). Prior to the private placement in 2014, we entered into a one -year consulting agreement with Lonnie Ledbetter that became effective upon his resignation as a director, officer and employee of the Company. This agreement became effective upon completion of the private placement, pursuant to which we paid Lonnie Ledbetter a total of $500 thousand ($ 250 thousand in 2015 and 2014, respectively) in exchange for him providing certain consulting services to us during the term of the agreement. Lonnie Ledbetter completed his one-year consultancy with the Company on June 25, 2015. In 2014, prior to the completion of the private placement, the Company transferred real estate and certain vehicles valued at $513 thousand, equally to Trace Ledbetter and Luke Ledbetter, which amounts were included in founder special compensation in the 2014 consolidated statement of income.

401(k) Profit-Sharing Plan and

401(k) Profit-Sharing Plan and Trust	12 Months Ended
	Dec. 31, 2015
401(k) Profit-Sharing Plan and Trust
401(k) Profit-Sharing Plan and Trust	14. 401(k) Profit-Sharing Plan and Trust The Company has a 401(k) profit-sharing plan for employees that covers all officers and employees who are at least 18 years of age. Effective January 1, 2015, the Company is required to make a matching contribution of 100% of the first 1% and 50% of the next 5% of employees’ contributions. For employee contributions made prior to January 1, 2015, the Company was required to make matching contributions of 50% of employees’ contributions, limited to 6% of eligible employees’ compensation. Also, the Company may make additional matching and profit-sharing contributions that are discretionary and are determined at the end of each plan year. The employer contribution expense included in general and administrative expenses is $1.2 million, $1.1 million and $1.0 million of December 31, 2015, 2014, and 2013, respectively.

Stock-based Payments

Stock-based Payments	12 Months Ended
	Dec. 31, 2015
Stock-based Payments
Stock-based Payments	15. Stock-based Payments On May 29, 2014, the Company’s shareholders approved the 2014 Long-Term Incentive Plan (“2014 Plan”), which provides for an aggregate of 4.4 million shares of our common stock that may be issued to employees and non-employee directors. Awards under the 2014 Plan may be in the form of stock options (including incentive stock options that meet the requirements of Section 422 of the Internal Revenue Code and non-statutory stock options), restricted stock, restricted stock units, stock appreciation rights and performance units. Upon completion of the private placement in 2014, the Company made grants of non-qualified stock options to our executive officers and certain employees to purchase an aggregate of 2,783,873 shares of our common stock. In addition to the grants of non-qualified stock options, the Company made grants of 12,000 shares of restricted stock to our non-employee directors. These non-qualified stock options and restricted stock grants are classified as equity based awards and will be recognized on a straight-line basis over the vesting period of 3 years and 1 year, respectively. The fair value of each stock option grant was established on the grant date using the Black-Scholes option pricing model with the following weighted-average assumptions. The expected volatility is 32.96% , based on historical volatility of similar entities that are publicly traded for a period equal to the expected term. The estimated term of the options, all of which expire ten years after the grant date, is 5.5 years based on expected behavior of the group of option holders. The assumed risk-free interest rate is 1.85% , based on rates for U.S. Treasury Notes with maturity dates corresponding to the estimated term of the options on the date of grant. The assumed dividend yield was 0.40% and no forfeitures are expected. On July 9, 2014 the Company granted 38,500 shares of common stock to employees under the 2014 Plan. The fair value of the shares was determined based on the trading price of the stock as of the grant date. On March 30, 2015, the Company awarded 230,060 shares of performance-based restricted stock to certain officers under the 2014 Plan. The fair value of the shares was determined based on the trading price of the stock as of the grant date. These restricted stock grants are classified as equity based awards and will vest based on achievement of performance objectives over one , two and three year performance periods. On June 25, 2015, the Company granted 11,028 shares of restricted stock to non-employee directors. These restricted stock grants are classified as equity awards and will be recognized on a straight line basis over a 1 year vesting period. The Company measures compensation cost for stock awards at fair value and recognizes it over the service period for awards expected to vest. Total stock-based compensation expense related to stock options and stock grants for the year ended December 31, 2015 and 2014 was $4.1 million and $2.0 million, respectively. There was no stock-based compensation expense for the year ended December 31, 2013. Total recognized tax benefit related to the stock options and stock grants was $1.4 million and $688 thousand for the years ended December 31, 2015 and 2014, respectively. There was no recognized tax benefit related to stock options and stock grants for the year ended December 31, 2013. As of December 31, 2015, there was $4.9 million of total unrecognized compensation cost related to non-vested share-based compensation grants. This unrecognized compensation is expected to be recognized over a weighted-average period of 1.5 years. The total fair value of stock awards that vested during the year ended December 31, 2015 was $3.9 million. No awards vested during the years ended December 31, 2014 and 2013. A summary of nonvested stock activity, including stock options and restricted stock grants, for the year ended December 31, 2015 is as follows : Weighted-Average Weighted-Average Restricted Grant Date Fair Value Stock Grant Date Fair Value Shares per Restricted Share Options per Stock Option Nonvested at January 1, 2015 $ $ Granted — — Forfeited — — Vested Nonvested at December 31, 2015 A summary of stock option activity for the year ended December 31, 2015 is as follows : Weighted Weighted Weighted Weighted Average Average Share Average Average Number Exercise Price on Date Fair Remaining Aggregate of Awards Price of Exercise Value Contractual Life Intrinsic Value Outstanding, beginning of period $ $ — $ $ Granted — — — — — — Exercised/Released — — — — — — Outstanding, end of period — — Vested and exercisable, end of the period — — Vested and unvested exercisable, end of the period — — Vested and expected to vest, end of the period — — As of December 31, 2015, there were approximately 1.3 million shares of common stock available for future grants under the 2014 Plan .

Concentration of Risk

Concentration of Risk	12 Months Ended
	Dec. 31, 2015
Concentration of Risk
Concentration of Risk	16. Concentration of Risk The Company maintains cash and cash equivalents in accounts with financial institutions in excess of the amount insured by the Federal Deposit Insurance Corporation. The Company monitors the financial stability of these institutions regularly, and Management does not believe there is significant credit risk associated with deposits in excess of federally insured amounts. The Company’s writings in California, Texas, New York and Florida comprised 57% , 53% and 52% of gross premiums written for the years ending December 31, 2015, 2014 and 2013, respectively. The five largest reinsurers with unsecured reinsurance recoverables, all of which are rated A- or higher by A.M. Best, accounted for approximately 14% , 14% , 8% , 8% , and 7% of the Company’s unsecured reinsurance recoverables at December 31, 2015.

Leases

Leases	12 Months Ended
	Dec. 31, 2015
Investments
Leases	17. Leases The Company previously leased a portion of its home office building to an unaffiliated third party under the terms of an operating lease. Rental income for the years ended December 31, 2014 and 2013 is $2.1 million and $1.4 million, respectively. In November 2013, the Company received an early termination notice from the unaffiliated third party relating to the operating lease between the parties. The early termination notice was in compliance with the terms of the lease. The Company recognized $1.5 million in lease termination fees in 2014 due to the early termination of the lease. The lease was considered an operating lease through the early termination date of November 30, 2014.

Commitments and Contingencies

Commitments and Contingencies	12 Months Ended
	Dec. 31, 2015
Commitments and Contingencies
Commitments and Contingencies	18 . Commitments and Contingencies The Company is involved in various legal proceedings incidental to its normal business activities. Management of the Company does not anticipate that the outcome of such legal actions will have a material effect on the Company’s consolidated financial position or results of operations. SNIC, NSIC, and USIC are subject to assessments from various insurance regulatory agencies related to insurance company insolvencies. Management is not aware of any material assessments for which notice has not yet been received. However, to the extent that such assessments are made, the Company has the contractual right to recover these amounts from the underlying reinsurers. In July 2009, the Company formed a Collateral Protection Alliance (the “Alliance”) with CUMIS Insurance Society, Inc., a subsidiary of CUNA Mutual, to administer and write CPI business for CUNA Mutual’s customers. The Alliance includes an agency agreement and a reinsurance agreement whereby the Company cedes a portion of the business back to CUNA Mutual. In connection with the Alliance, the Company has a purchase option and CUNA Mutual has a put option, whereby the Company is obligated to purchase CUNA Mutual’s right to participate in future Program Services business at a specified price in the event of termination of the Alliance. The terms of the Alliance with CUNA Mutual were modified on May 19, 2014, whereby CUNA Mutual’s quota share percentage under the reinsurance agreement was reduced; the Alliance was extended through July 31, 2018 with an automatic three -year renewal (subject to the right of either party to give notice of nonrenewal); the termination rights for each party were modified, and the purchase price calculation was modified. In consideration of these changes, State National paid contract modification expense of $17.8 million.

Earnings Per Share

Earnings Per Share	12 Months Ended
	Dec. 31, 2015
Earnings Per Share
Earnings Per Share	19. Earnings Per Share We have adopted the provisions of ASC 260, “Earnings Per Share,” requiring presentation of both basic and diluted earnings per share. Earnings per share have been adjusted to reflect a 736 for one stock split in the form of a stock dividend on June 23, 2014. A reconciliation of the numerators and denominators of the basic and diluted per share calculations is presented below: Year Ended December 31, December 31, December 31, ($ in thousands, except for per share amounts) 2015 2014 2013 Numerator for both basic and diluted earnings per share: Net income (loss) $ $ $ Denominator for both basic and diluted earnings per share: Weighted-average common shares outstanding Dilutive effect of outstanding securities (determined using the treasury stock method) — Weighted-average common shares outstanding and potential common shares outstanding

Common Stock

Common Stock	12 Months Ended
	Dec. 31, 2015
Common Stock.
Common Stock	20. Common Stock On June 25, 2014, the Company completed the sale of an aggregate of 31,050,000 shares of our common stock in a private placement exempt from registration under the Securities Act and received net proceeds of approximately $280.6 million. Of the net proceeds from the private placement, the Company used approximately (i) $190.6 million to purchase 21,030,294 shares of common stock from certain of our shareholders pursuant to a stock redemption agreement entered into prior to the private placement, (ii) $17.8 million to make pre-tax payments to CUNA Mutual pursuant to a recent amendment of the alliance agreement (See Note 18 — “Commitments and Contingencies”) and (iii) $50 million to contribute to the capital of our insurance subsidiaries. On October 12, 2015, the Company announced a share repurchase program authorizing the repurchase up to $50 million in shares of the Company's common stock through December 31, 2016. Repurchases are made in accordance with the guidelines specified under Rule 10b-18 and may be made under Rule 10b5-1, under the Securities Exchange Act of 1934. During the year ended December 31, 2015, the Company purchased 1,788,640 shares of its common stock at an aggregate purchase price including commissions of $17.3 million (including $2.8 million that was settled on January 4, 2016). The excess cost of the repurchased shares over par value was charged to retained earnings. A summary of common stock repurchases for the period January 1, 2016 through March 10, 2016 (subsequent to December 31, 2015) and for the year ended December 31, 2015 is as follows: January 1 - ($ in thousands, except share and per share data) March 4, 2016 2015 Shares repurchased Average price per share $ $ Aggregate cost $ $ Authorization remaining at end of period $ $

Segment Information

Segment Information	12 Months Ended
	Dec. 31, 2015
Segment Information
Segment Information	21. Segment Information The Company’s reportable segments are strategic business units that offer different products and services. They are managed separately because each business requires different technology and business strategies. The Company operates through three business segments of which the two operating segments are Program Services and Lender Services. In the Program Services segment, the Company operates an issuing carrier (“fronting”) business that leverages our “A” (Excellent) A.M. Best rating, expansive licenses and reputation to provide insurance capacity access to U.S. property and casualty insurance markets. In the Lender Services segment, the Company specializes in providing collateral protection insurance, which insures automobiles held as collateral for loans made by financial institutions. The other segment is the Corporate segment. This segment consists of the investment portfolio, subordinated debentures, and includes rental income, investment income, interest expense, and corporate expenses. The Company’s Corporate segment includes an asset for Property and equipment, net. The depreciation of this asset is allocated to all segments based on estimated usage. The depreciation allocated to the Lender Services segment was $1.4 million, $1.4 million and $1.3 million for the years ended December 31, 2015, 2014 and 2013, respectively. The depreciation allocated to the Program Services segment was $343 thousand, $397 thousand and $286 thousand for the years ended December 31, 2015, 2014 and 2013, respectively. The following is business segment information for the twelve months ended December 31, 2015, 2014 and 2013: December 31, 2015 ($ in thousands) Program Lender Corporate Total Revenues: Premiums earned $ $ $ — $ Commission income — — Ceding fees — — Net investment income — — Realized net investment gains — — Other income — Total revenues Expenses: Losses and loss adjustment expenses — Commissions — Taxes, licenses, and fees — General and administrative Interest expense — — Total expenses Income (loss) before income taxes Income tax expense — — Net income (loss) $ $ $ $ Supplemental Information: Gross premiums written $ $ $ — $ Net premiums written $ $ $ — $ December 31, 2014 ($ in thousands) Program Lender Corporate Total Revenues: Premiums earned $ $ $ — $ Commission income — — Ceding fees — — Net investment income — — Realized net investment gains — — Other income — Total revenues Expenses: Losses and loss adjustment expenses — Commissions — Taxes, licenses, and fees — General and administrative Founder special compensation — — Offering-related expenses — — Contract modification expense — — Interest expense — — Total expenses Income (loss) before income taxes Income tax expense/(benefit) — — Net income (loss) $ $ $ $ Supplemental Information: Gross premiums written $ $ $ — $ Net premiums written $ $ $ — $ December 31, 2013 ($ in thousands) Program Lender Corporate Total Revenues: Premiums earned $ $ $ — $ Commission income — — Ceding fees — — Net investment income — — Realized net investment gains — — Other income Total revenues Expenses: Losses and loss adjustment expenses — Commissions — Taxes, licenses, and fees — General and administrative Founder special compensation — — Interest expense — — Total expenses Income (loss) before income taxes Income tax expense/(benefit) — — Net income (loss) $ $ $ $ Supplemental Information: Gross premiums written $ $ $ — $ Net premiums written $ $ $ — $ The following tables summarize the financial position of the Company’s segments as of December 31, 2015 and 2014. December 31, 2015 ($ in thousands) Program Lender Corporate Total Assets: Accounts receivable from agents, net $ $ $ — $ Reinsurance recoverable on paid losses — Reinsurance recoverables — Deferred income taxes, net — — Goodwill and intangible assets, net — Other assets Total assets $ $ $ $ Liabilities: Unpaid losses and loss adjustment expenses $ $ $ — $ Unearned premiums — Allowance for policy cancellations — — Deferred ceding fees — — Other liabilities Total liabilities $ $ $ $ December 31, 2014 ($ in thousands) Program Lender Corporate Total Assets: Accounts receivable from agents, net $ $ $ — $ Reinsurance recoverable on paid losses — Reinsurance recoverables — Deferred income taxes, net — — Goodwill and intangible assets, net — Other assets Total assets $ $ $ $ Liabilities: Unpaid losses and loss adjustment expenses $ $ $ — $ Unearned premiums — Allowance for policy cancellations — — Deferred ceding fees — — Other liabilities Total liabilities $ $ $ $

Condensed Quarterly Financial D

Condensed Quarterly Financial Data - Unaudited	12 Months Ended
	Dec. 31, 2015
Investments
Condensed Quarterly Financial Data - Unaudited	22. Condensed Quarterly Financial Data - Unaudited The following tables summarize our quarterly financial data: 2015 Quarters Ended ($ in thousands) Mar 31 Jun 30 Sep 30 Dec 31 Total revenues $ $ $ $ Total expenses Income (loss) before income taxes Income tax expense (benefit) Net income (loss) Basic earnings per share $ $ $ $ Diluted earnings per share 2014 Quarters Ended ($ in thousands) Mar 31 Jun 30 Sep 30 Dec 31 Total revenues $ $ $ $ Total expenses Income (loss) before income taxes Income tax expense (benefit) Net income (loss) Basic earnings per share $ $ $ $ Diluted earnings per share The Company earns minimum ceding fees on certain programs based on estimates of annual premiums to be written for those programs that are subject to minimum premium levels and related ceding fees. The company re-estimated its 2015 annual projection for such programs during the second, third and fourth quarters of 2015, which resulted in $1.3 million, $1.9 million and $1.0 million of additional minimum ceding fees earned for the quarters ending June 30, 2015, September 30, 2015 and December 31, 2015, respectively. For the year ended December 31, 2014, the Company’s non-recurring, unusual or infrequently occurring items recognized in total expenses included offering related expenses in connection with the private placement of its stock, founder special compensation expenses and contract modification expense related to the amendment to the Company’s alliance agreement with CUNA Mutual. The effect of offering related expenses was $7.1 million, $1.1 million, and $603 thousand for the quarters ended June 30, 2014, September 30, 2014 and December 31, 2014, respectively. The effect of founder special compensation expenses was $11.2 million and $6.7 million for the quarters ended March 31, 2014 and June 30, 2014, respectively. The Company recognized contract modification expenses of $17.8 million for the quarter ended June 30, 2014. For the year ended December 31, 2013, the Company’s non-recurring, unusual or infrequently occurring items included in total expenses was founder special compensation expenses. The effect of these expenses was $10.0 million and $202 thousand for the quarters ended March 31, 2013 and June 30, 2013, respectively.

Subsequent Events

Subsequent Events	12 Months Ended
	Dec. 31, 2015
Subsequent Events
Subsequent Events	23. Subsequent Events No items were identified in the period subsequent to the financial statement date that required adjustment or disclosure.

Annual Schedules

Annual Schedules	12 Months Ended
	Dec. 31, 2015
Parent Company Only
Financial Information Of Parent Company Only Disclosure Text Block	Annual Schedules State National Companies, Inc. Parent Company Only Balance Sheet s ($ in thousands, except for per share information) December 31 2015 2014 Assets Cash and cash equivalents $ $ Investment in subsidiaries Income taxes receivable — Deferred income taxes, net Other assets Total assets $ $ Liabilities Income taxes payable $ $ — Other liabilities — Other payables, affiliate Total liabilities Shareholders’ equity Common stock, $.001 par value ( 150,000,000 shares authorized; 42,699,550 and 44,247,102 shares issued at December 31, 2015 and December 31, 2014, respectively) Preferred stock, $.001 par value ( 10,000,000 shares authorized; no shares issued and outstanding at December 31, 2015 and December 31, 2014 ) — — Additional paid-in capital Retained earnings Accumulated other comprehensive income Total shareholders’ equity Total liabilities and shareholders’ equity $ $ State National Companies, Inc. Parent Company Only Statements of Incom e ($ in thousands) Year Ended December 31, 2015 2014 2013 Revenues: Equity in earnings of subsidiaries $ $ $ Total revenues Expenses: General and administrative — Total expenses — Income before income taxes Income taxes: Current — Deferred — Net income $ $ $ State National Companies, Inc. Parent Company Only Statements of Cash Flow s ($ in thousands) Year Ended December 31, 2015 2014 2013 Operating activities: Net income $ $ $ Adjustments to reconcile net income to net cash used in operating activities: Equity in earnings of subsidiaries Deferred income taxes, net — Share-based compensation — Change in: Income taxes receivable — Other assets — Other payables, affiliate — Net cash used in operating activities — Investing activities: Capital contribution to subsidiary — — Net cash used in investing activities — — Financing activities: Distributions received Dividends paid Proceeds from issuances of common stock — — Costs directly attributable to issuance of common stock — — Redemption of existing common stock — — Net cash provided by financing activities — Net change in cash and cash equivalents — Cash and cash equivalents at beginning of year — — Cash and cash equivalents at end of year $ $ $ —

Supplementary Insurance Informa

Supplementary Insurance Information	12 Months Ended
	Dec. 31, 2015
Supplementary Insurance Information
Supplementary Insurance Information	State National Companies, Inc. Supplementary Insurance Informatio n December 31, 2015 Loss and LAE Earned Net Investment Loss and LAE DAC General and Net Written ($ in thousands) DAC Reserves UPR Premium Income Incurred Amortization Administrative Expenses Premium Program $ — $ $ $ $ — $ $ — $ $ Lender — Corporate — — — — — — — Total $ $ $ $ $ $ $ $ $ December 31, 2014 Loss and LAE Earned Net Investment Loss and LAE DAC General and Net Written ($ in thousands) DAC Reserves UPR Premium Income Incurred Amortization Administrative Expenses Premium Program $ — $ $ $ $ — $ $ — $ $ Lender — Corporate — — — — — — — Total $ $ $ $ $ $ $ $ $ December 31, 2013 Loss and LAE Earned Net Investment Loss and LAE DAC General and Net Written ($ in thousands) DAC Reserves UPR Premium Income Incurred Amortization Administrative Expenses Premium Program $ $ $ $ $ — $ $ $ $ Lender — Corporate — — — — — — — Total $ $ $ $ $ $ $ $ $

Supplementary Schedule of Allow

Supplementary Schedule of Allowance For Policy Cancellations	12 Months Ended
	Dec. 31, 2015
Supplementary Schedule of Allowance for Policy Cancellations
Schedule Of Supplementary Policy Cancellations	State National Companies, Inc. Supplementary Schedule of Allowance for Policy Cancellation s Year Ended December 31, ($ in thousands) 2015 2014 2013 Beginning balance $ $ $ Additions Deductions Prior year development Ending balance $ $ $ Allowance for policy cancellations is established based on estimates of expected future policy cancellations associated with new business written. Deductions are made as policy cancellations occur and return premiums are paid in subsequent months. The allowance for policy cancellations in 2015, 2014, and 2013 included upward revisions to prior year estimates of $0.6 million , $4.2 million and $2.8 million , respectively. Because of the interplay between the allowance for policy cancellations and the related unearned premium reserve, changes in the allowance for policy cancellations are partially offset by related changes in the unearned premium reserve and amounts ceded to reinsurers. After taking into account the associated changes in unearned premium and amounts ceded to reinsurers, the net negative impact to the balance sheet and the corresponding reduction in net income from the revised estimates in each of the years ending December 31, 2015, 2014, and 2013 was approximately $0.2 million , $2.2 million and $1.6 million , respectively.

Summary of Significant Accoun34

Summary of Significant Accounting Policies (Policy )	12 Months Ended
	Dec. 31, 2015
Summary of Significant Accounting Policies
Description of Business	Description of Business State National Companies, Inc. (the “Company”) refers to a group of companies that conduct insurance-related activities along two major segments. The Company’s Program Services segment generates fee income, in the form of ceding fees, by offering issuing carrier capacity to both specialty general agents and other producers (“GAs”), who sell, control, and administer books of insurance business that are supported by third parties that assume reinsurance risk. Substantially all of the risk associated with the Program Services segment is ceded to unaffiliated, highly rated reinsurance companies or other reinsurers that provide collateral. The Company’s Lender Services segment involves the writing and insuring of lines of insurance marketed to lending institutions, primarily collateral protection insurance (“CPI”) policies.
Principles of Consolidation	Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation.
Basis of Presentation	Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”), which, as to our insurance company subsidiaries, differ from statutory accounting practices prescribed or permitted for insurance companies by insurance regulatory authorities.
Estimates	Estimates The preparation of financial statements in conformity with GAAP requires the Company’s management (“Management”) to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ materially from these estimates.
Fair Value of Financial Instruments	Fair Value of Financial Instruments Cash and Cash Equivalents: The carrying amounts reported in the consolidated balance sheets approximate fair value. Restricted Cash and Investments: The carrying amounts reported in the consolidated balance sheets approximate fair value. Short-term Investments: The carrying amounts reported in the consolidated balance sheets approximate fair value. Investments : See Note 9 – “Fair Value Measurements” Land held for sale : The land held for sale is carried at fair value less expected selling costs. Payables and Receivables : Reinsurance recoverable on paid losses, reinsurance recoverables, agents’ balances receivable and payable, and payable to insurance companies are carried at cost, which approximates fair value. Subordinated Debentures: The amounts reported in the consolidated balance sheets are carried at par, which approximates their estimated fair value due to the floating interest rate provisions of the debt instruments. Income taxes receivable/payable : The carrying amounts reported in the consolidated balance sheets approximate fair value. Other assets/liabilities : The carrying amounts reported in the consolidated balance sheets approximate fair value.
Cash and Cash Equivalents	Cash and Cash Equivalents All highly liquid investments with an original maturity of three months or less are considered cash equivalents.
Short-Term Investments	Short-Term Investments Short-term investments represent liquid investments with original maturities of more than three months but less than one year.
Restricted Cash and Investments	Restricted Cash and Investments Restricted cash and investments are primarily comprised of deposits made by a reinsurer that cover losses for a program up to the contractual threshold. These fiduciary cash and investment balances are invested at the direction of the reinsurer for this program; accordingly, income earned on these balances inures to the benefit of the reinsurer.
Investments	Investments Investments are considered available-for-sale and are carried at fair value. The Company measures the fair value of the investments based upon quoted market prices from an independent pricing service and its third-party investment managers, using observable market information. The cost of securities sold is based on the specific identification method. Unrealized gains and losses associated with the available-for-sale portfolio, as a result of temporary changes in fair value during the period such investments are held, are reflected net of income taxes and reported in other comprehensive income as a separate component of shareholders’ equity. Unrealized losses associated with the available-for-sale portfolio that are deemed to be other-than-temporary are charged to income in the period in which the other-than-temporary impairment is determined. Debt security premiums and discounts are amortized into earnings using the effective-interest method. The Company evaluates its investment portfolio for impairments of individual securities that are deemed to be other-than-temporary. Fixed maturity securities that are determined to have other-than-temporary impairment and it is more likely than not the Company will sell before recovery of their amortized cost, are written down to fair value and the entire amount of the write-down is included in net income, net of realized investment gains. For all other impaired fixed-maturity securities, the impairment loss is separated into the amount representing the credit loss and the amount representing all other factors. The amount of impairment loss that represents the credit loss is included in net income, net of realized investment gains. The amount of the impairment loss that relates to all other factors is included in other comprehensive income. Equity securities that are determined to have other-than-temporary impairment are recognized in net income, net of realized investment gains. The process for identifying other-than-temporary declines in fair value involves the consideration of several factors, including, but not limited to, whether the issuer has been downgraded to below investment-grade, the length of time in which there has been a significant decline in value, the liquidity and overall financial condition of the issuer, the nature and performance of the collateral or other credit support backing the security, the significance of the decline in value, and whether the Company has the intent to sell the security or may be required to sell the security prior to its anticipated recovery. The Company reviews securities for other-than-temporary impairment internally and with its investment advisors. The Company invests in convertible securities that have embedded derivatives. Derivatives embedded within non-derivative instruments, such as options embedded in convertible fixed maturity securities, are bifurcated from the host instrument when the embedded derivative meets the criteria for bifurcation. However, for reporting purposes, these embedded derivatives are presented together with the host contract and carried at estimated fair value. Changes in the estimated fair value of the embedded derivatives are reflected in “Realized net investment gains” in the consolidated statements of income, while changes in the estimated fair value of the underlying fixed maturity securities are reflected in “Unrealized holding gains (losses)” in the consolidated statements of comprehensive income.
Deferred Acquisition Costs	Deferred Acquisition Costs Certain costs, primarily premium taxes, commissions, and general expenses that are directly related to the successful acquisition of new or renewal business are deferred to the extent recoverable from future premiums earned. Deferred acquisition costs are amortized in proportion to the related unearned premium reserve over the terms of the related policies. Investment income is not included in the Company’s recoverability analysis of deferred acquisition costs.
Deferred Ceding Fees	Deferred Ceding Fees Ceding fees that are associated with unearned premiums are established as a liability and earned pro rata over the life of the underlying business.
Property, Equipment, and Depreciation	Property, Equipment, and Depreciation Property and equipment are recorded at cost and depreciated. Depreciation is computed using the straight-line method over the estimated useful lives of the assets (ranging from three to twenty years). The Company changed its capitalization threshold as of January 1, 2014 from $1 thousand to $5 thousand per item. Gains and losses on the disposition of fixed assets are determined on a specific asset identification basis and are included in net income. Land held for sale is carried at fair value less expected selling costs.
Goodwill and Intangible Assets	Goodwill and Intangible Assets Goodwill is the difference between the purchase price in a business combination and the fair value of assets acquired and liabilities assumed, and is not amortized. Intangible assets include assets with a finite life, primarily customer relationships/lists, and are amortized over the estimated useful life of the asset in proportion to the expected benefit. Goodwill is tested for impairment on an annual basis or more frequently if events or changes in circumstances indicate that the carrying amount may not be recoverable. The impairment test is performed using a two-step process. In the first step, the fair value of a reporting unit is compared to its carrying value. If the carrying value of a reporting unit exceeds its fair value, the second step of the impairment test is performed for purposes of measuring the impairment. In the second step, the fair value of the reporting unit is allocated to all of the assets and liabilities of the reporting unit to determine an implied goodwill value. If the carrying amount of the reporting unit goodwill exceeds the implied goodwill value, an impairment loss is recognized in an amount equal to that excess. As of December 31, 2015, the Company performed the first step of its annual goodwill assessment for the individual reporting units to which goodwill is allocated and determined there is no impairment of goodwill. The Company periodically evaluates the recoverability of intangible assets and takes into account events or circumstances that warrant revised estimates of useful lives or that indicate that impairment exists. No impairments were recognized in 2015, 2014 or 2013.
Unpaid Losses and Loss Adjustment Expenses	Unpaid Losses and Loss Adjustment Expenses The liability for unpaid losses and loss adjustment expenses (“LAE”) includes an estimate for claims reported and an additional liability for claims incurred but not reported, based on the Company’s historical loss experience. While Management believes the amounts included in the consolidated financial statements are adequate, such estimates may be more or less than the amount ultimately paid when the claims are settled. These estimates are continually reviewed and adjusted, as necessary, as experience develops or as new information becomes known; such adjustments are included in current operations.
Allowance for Policy Cancellations	Allowance for Policy Cancellations An allowance for policy cancellations is provided for the estimated amount of return premiums and policy fees, net of commission expense and premium taxes that will be incurred on expected future policy cancellations associated with the Company’s CPI business. The allowance is based on the Company’s historical cancellation experience. While Management believes the amounts included in the consolidated financial statements are adequate, such estimates may be more or less than the amounts ultimately refunded. The estimates are continually reviewed by Management, and any changes are reflected in current operations.
Reinsurance	Reinsurance Reinsurance premiums, losses, and loss adjustment expenses are accounted for on bases consistent with those used in accounting for the original policies issued and the terms of the reinsurance contracts.
Earnings Per Share	Earnings Per Share The computation of earnings per share is based upon the weighted average number of common shares outstanding during the period plus the effect of common shares potentially issuable (in periods in which they have a dilutive effect). Earnings per share have been adjusted to reflect a 736 for 1 stock split in the form of a stock dividend on June 23, 2014.
Income Taxes	Income Taxes Prior to June 25, 2014, the Company had elected for its parent company to be taxed for federal income tax purposes as a “Subchapter S corporation” under the Internal Revenue Code. On June 25, 2014, the Company completed a private placement of common stock, which resulted in the termination of its Subchapter S corporation status. Prior to this change in tax status, deferred income taxes were recorded only on the Company’s insurance subsidiaries (and their immediate parent) to reflect the tax consequences on future years of differences between the tax bases of assets and liabilities and their financial reporting amounts at each year-end. Prior to June 25, 2014 all other entities included in the consolidated group filed under Subchapter S Corporation status; therefore, no provision for income taxes had been recorded for these entities. On June 25, 2014 the Company recorded a net deferred income tax benefit related to this change in tax status to reflect the tax consequences on future years of differences between the tax bases of assets and liabilities and their financial reporting amounts. For any uncertain tax positions not meeting the “more likely than not” recognition threshold, accounting standards require recognition, measurement, and disclosure in the financial statements. There were no uncertain tax positions at December 31, 2015 and December 31, 2014.
Income Recognition	Income Recognition Premiums on CPI business are earned on a pro rata basis over the terms of the policies after taking into consideration the allowance for policy cancellations. Premiums on Program Services business are earned on a pro rata basis over the terms of the policies. Ceding fees are earned on the same basis as the underlying premiums.
Program Services	Program Services In connection with writing Program Services business, the Company enters into contractual agreements with both the producing general agents and the reinsurers, whereby the general agents and reinsurers are obligated to each other for payment of insurance amounts, including premiums, commissions, and losses. These funds do not flow through the Company, but are settled directly between the general agent and the reinsurer; accordingly, no receivables or payables are recorded for these amounts. All obligations of SNIC, NSIC, and USIC owed to or on behalf of their policyholders are recorded by the Company and, to the extent appropriate, offsetting reinsurance recoverables are recorded.
Minimum Ceding Fees	Minimum Ceding Fees Minimum ceding fees are fees the Company receives pursuant to contractual minimum premium requirements for certain programs where either significant premium capacity is reserved for that program or where the expected premium volume is not reasonably assured. For those programs where a minimum applies, the ceding fees are considered as two distinct pieces: 1) “premium related fees,” which are earned as the associated gross written premium is earned, typically pro rata on an annual basis; and (2) “capacity fees,” which are determined based on the shortfall, if any, between the program’s contractual annual premium minimum and the amount of premium estimated to be written in the contract year, which fees are earned over the contract year. Minimum ceding fees earned are based on estimates of annual premiums to be written for those programs that are subject to minimum premium levels and related ceding fees. These estimates are based upon various assumptions made regarding the production plans for the underlying program. These assumptions are reviewed by Management and the amount of annual premiums expected to be written are re-estimated as needed. As actual premiums emerge and revisions are made to earlier estimates, minimum ceding fees are earned or reversed and are reflected in current operations.
Stock-based Compensation	Stock-based Compensation Compensation expense for stock-based payments is recognized based on the measurement-date fair value for awards that will settle in shares. Compensation expense for awards that are settled in equity are recognized on a straight line pro rata basis over the vesting period. See Note 15 — “Stock-based Payments” for related disclosures.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In May 2014, the FASB issued an accounting standards update (ASU 2014-09), “Revenue from Contracts with Customers” (Topic 606). The core guidance of the ASU presents a comprehensive revenue recognition model that requires a company to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. The ASU provides a five-step analysis of transactions to determine when and how revenue is recognized and requires additional disclosures sufficient to describe the nature, amount, timing and uncertainty of revenue and cash flows for these transactions. In August 2015, the FASB issued ASU 2015-14 to defer the effective date to annual reporting periods beginning after December 15, 2017, including interim reporting periods within that period. Earlier application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. As insurance contracts are excluded from this ASU, the Company is currently evaluating what impact, if any, this ASU will have on financial results and disclosures and which adoption method to apply. In June 2014, the FASB issued an accounting standards update (ASU 2014-12), “Compensation – Stock Compensation” (Topic 718). The main provision of this ASU requires that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. Compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered. If the performance target becomes probable of being achieved before the end of the requisite service period, the remaining unrecognized compensation cost should be recognized prospectively over the remaining requisite service period. This ASU is effective for annual reporting periods beginning after December 15, 2015 and interim periods within those annual periods. The Company awarded performance based stock compensation on March 30, 2015. The Company expects the impact of this pronouncement to be minimal. In April 2015, the FASB issued an accounting standards update (ASU 2015-03), “Interest – Imputation of Interest” (Topic 835). The new guidance requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The guidance in ASU 2015-03 does not address presentation or subsequent measurement of debt issuance costs related to line-of-credit arrangements. The FASB therefore issued ASU 2015-15 “Interest—Imputation of Interest (Subtopic 835-30): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements,” which clarified that the SEC staff would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. For public business entities, the guidance is effective for annual and interim periods beginning after December 15, 2015. Early adoption is permitted. The Company does not plan to early adopt and expects the impact of this pronouncement to be minimal. In May 2015, the FASB issued an accounting standards update (ASU 2015-09), “ Disclosures about Short-Duration Contracts” (Topic 944) intended to make targeted improvements to disclosure requirements for insurance companies that issue short-duration contracts. The amendments in this update are expected to increase transparency of significant estimates made in measuring those liabilities, improve comparability by requiring consistent disclosure of information, and provide financial statement users with additional information to facilitate analysis of the amount, timing, and uncertainty of cash flows arising from contracts issued by insurance entities and the development of loss reserve estimates. This ASU will be effective for annual periods beginning after December 15, 2015, and interim periods within annual periods beginning after December 15, 2016. The Company is currently evaluating what impact this ASU will have on disclosures. In June 2015, the FASB issued an accounting standards update (ASU 2015-10), “Technical Corrections and Improvements.” The amendments in this update represent changes to clarify the codification, correct unintended application of guidance, or make minor improvements to the codification that are not expected to have a significant effect on current accounting practice or create a significant administrative cost to most entities. Additionally, some of the amendments will make the codification easier to understand and easier to apply by eliminating inconsistencies, providing needed clarifications, and improving the presentation of guidance in the codification. This ASU will be effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted. The Company does not plan to early adopt and expects the impact of this pronouncement to be minimal.

Investments (Tables)

Investments (Tables)	12 Months Ended
	Dec. 31, 2015
Investments
Summary of amortized cost, gross unrealized gains and losses, and the fair value of investment securities by class	Cost or Gross Gross December 31, 2015 Amortized Unrealized Unrealized Fair ($ in thousands) Cost Gains Losses Value Fixed-maturity securities Government $ $ $ $ Government agency State and municipality Industrial and miscellaneous Residential mortgage-backed Commercial mortgage-backed Redeemable preferred stock Total fixed-maturity securities Equity securities Non-redeemable preferred stock Common stock Total equity securities Total investments $ $ $ $ Cost or Gross Gross December 31, 2014 Amortized Unrealized Unrealized Fair ($ in thousands) Cost Gains Losses Value Fixed-maturity securities Government $ $ $ $ Government agency State and municipality Industrial and miscellaneous Residential mortgage-backed Commercial mortgage-backed Redeemable preferred stock — Total fixed-maturity securities Equity securities Non-redeemable preferred stock — Common stock — Total equity securities — Total investments $ $ $ $
Schedule of gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position	Less than 12 Months 12 Months or More Total December 31, 2015 Fair Unrealized Fair Unrealized Fair Unrealized ($ in thousands) Value Losses Value Losses Value Losses Fixed-maturity securities Government $ $ $ $ $ $ Government agency — — State and municipality Industrial and miscellaneous Residential mortgage-backed Commercial mortgage-backed Redeemable preferred stock Total fixed-maturity securities $ $ $ $ $ $ Equity securities Non-redeemable preferred stock — — Common stock — — Total equity securities — — $ $ $ $ $ $ Less than 12 Months 12 Months or More Total December 31, 2014 Fair Unrealized Fair Unrealized Fair Unrealized ($ in thousands) Value Losses Value Losses Value Losses Fixed-maturity securities Government $ $ $ $ $ $ Government agency — — State and municipality Industrial and miscellaneous Residential mortgage-backed Commercial mortgage-backed Total fixed-maturity securities $ $ $ $ $ $
Schedule of gross realized gains (losses)	Year Ended December 31, December 31, December 31, ($ in thousands) 2015 2014 2013 Realized gains: Fixed-maturity securities $ $ $ Equity securities Gross realized gains Realized losses: Fixed-maturity securities Equity securities — Other-than-temporary impairment losses on fixed-maturity securities — Gross realized losses Net realized investment gains (losses) $ $ $
Schedule detailing the maturities of the Company's fixed-maturity securities, available-for-sale	Fair ($ in thousands) Amortized Cost Value Due in one year or less $ $ Due after one year through five years Due after five years through ten years Due after ten years Residential mortgage-backed securities Commercial mortgage-backed securities $ $
Schedule of net investment income	Year Ended December 31, December 31, December 31, ($ in thousands) 2015 2014 2013 Interest on investments $ $ $ Dividends Gross investment income Investment expenses Net investment income $ $ $

Deferred Acquisition Costs (Tab

Deferred Acquisition Costs (Tables)	12 Months Ended
	Dec. 31, 2015
Income Taxes
Schedule of deferred acquisition costs	($ in thousands) 2015 2014 2013 Balance, beginning of year $ $ $ Capitalized costs Amortization Balance, end of year $ $ $

Property, Equipment, and Depr37

Property, Equipment, and Depreciation (Tables)	12 Months Ended
	Dec. 31, 2015
Income Taxes
Summary of property, equipment, and depreciation	($ in thousands) 2015 2014 Land held for use $ $ Land held for sale Building and improvements Transportation equipment Furniture and fixtures Computer equipment and software Accumulated depreciation and amortization Property and equipment, net $ $

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	12 Months Ended
	Dec. 31, 2015
Goodwill and Intangible Assets
Schedule of net carrying amount of intangible assets and goodwill	($ in thousands) Gross Carrying Amount Accumulated Amortization Net Carrying Amount December 31, 2015 Goodwill $ $ — $ Customer relationships/lists $ $ $ December 31, 2014 Goodwill $ $ — $ Customer relationships/lists Non-compete agreements — $ $ $

Subordinated Debentures (Tables

Subordinated Debentures (Tables)	12 Months Ended
	Dec. 31, 2015
Income Taxes
Summary of TPS Debentures	($ in thousands) 2015 2014 Floating Rate Capital Securities at LIBOR plus 4.00% , issued December 4, 2002, maturing on December 4, 2032 $ $ Floating Rate Capital Securities at LIBOR plus 4.10% , issued December 16, 2003, maturing on January 8, 2034 Floating Rate Capital Securities at LIBOR plus 3.80% , issued May 26, 2004, maturing on May 24, 2034 $ $

Income Tax Provision (Tables)

Income Tax Provision (Tables)	12 Months Ended
	Dec. 31, 2015
Income Taxes
Components of income tax expense	The components of income tax expense for the years ended December 31 are as follows ($ in thousands) : 2015 ($ in thousands) Federal State Total Federal and state income tax expense (benefit) Current $ $ $ Deferred Total income tax expense (benefit) $ $ $ 2014 ($ in thousands) Federal State Total Federal and state income tax expense (benefit) Current $ $ $ Deferred Total income tax expense (benefit) $ $ $ 2013 ($ in thousands) Federal State Total Federal and state income tax expense (benefit) Current $ $ $ Deferred — Total income tax expense (benefit) $ $ $
Schedule of components of net deferred income tax asset	($ in thousands) 2015 2014 Deferred income tax assets: Allowance for policy cancellations $ $ Unpaid losses and loss adjustment expenses Deferred ceding fees Management fee Compensation Intangible assets Unrealized losses on fixed maturities and other investment securities Write-down of other-than-temporarily impaired investment securities Other Total deferred income tax assets Deferred income tax liabilities: Unearned premiums Unrealized gains on equity securities Unrealized gains on fixed maturities and other investment securities Deferred acquisition costs Fixed assets Other Total deferred income tax liabilities Net deferred income tax asset $ $
Schedule of reconciliation of federal income tax expense computed by applying the federal statutory tax rate to income (loss) before federal income tax expense (benefit)	2015 2014 2013 Effective Effective Effective ($ in thousands) Amount Tax Rate Amount Tax Rate Amount Tax Rate Expected tax expense (benefit) $ % $ % $ % Exclusion of Subchapter S income — — Change in tax status — — (19,316) — — Change in federal statutory rate — — — — Accrual/adjustment prior year Tax-exempt income State income taxes Meals and entertainment Other — — Total income tax expense $ % $ % $ %

Reinsurance (Tables)

Reinsurance (Tables)	12 Months Ended
	Dec. 31, 2015
Reinsurance
Summary of balances	December 31, December 31, ($ in thousands) 2015 2014 Ceded unearned premiums $ $ Ceded loss and loss adjustment expense reserves Total reinsurance recoverables Secured reinsurance recoverables Unsecured reinsurance recoverables $ $

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	12 Months Ended
	Dec. 31, 2015
Fair Value Measurements
Schedule of investments measured at fair value on recurring basis	December 31, 2015 ($ in thousands) Level 1 Level 2 Level 3 Total Fixed-maturity securities Government $ — $ $ — $ Government agency — — State and municipality — — Industrial and miscellaneous — — Residential mortgage-backed — — Commercial mortgage-backed — — Redeemable preferred stock — — Total fixed-maturity securities — — Equity securities Non-redeemable preferred stock — — Common stock — — Total equity securities — — Total investments $ — $ $ — $ December 31, 2014 ($ in thousands) Level 1 Level 2 Level 3 Total Fixed-maturity securities Government $ — $ $ — $ Government agency — — State and municipality — — Industrial and miscellaneous — — Residential mortgage-backed — — Commercial mortgage-backed — — Redeemable preferred stock — — Total fixed-maturity securities — — Equity securities Non-redeemable preferred stock — — Common stock — — Total equity securities — — Total investments $ — $ $ — $

Premiums Earned (Tables)

Premiums Earned (Tables)	12 Months Ended
	Dec. 31, 2015
Income Taxes
Schedule of premiums earned	($ in thousands) 2015 2014 2013 Premiums written $ $ $ Premiums assumed Premiums ceded Net premiums retained Change in net unearned premiums Total premiums earned $ $ $ Premiums assumed as a % of net premiums retained % % %

Losses and Loss Adjustment Ex44

Losses and Loss Adjustment Expenses (Tables)	12 Months Ended
	Dec. 31, 2015
Income Taxes
Schedule of losses and loss adjustment expenses	($ in thousands) 2015 2014 2013 Direct losses and loss adjustment expenses $ $ $ Assumed losses and loss adjustment expenses Ceded losses and loss adjustment expenses Total net losses and loss adjustment expenses $ $ $
Schedule in the liability for unpaid losses and loss adjustment expenses	($ in thousands) 2015 2014 2013 Balance at January 1, $ $ $ Reinsurance recoverables Net balance at January 1, Incurred related to: Current year Prior year Total incurred Paid related to: Current year Prior year Total paid Net balance at December 31, Reinsurance recoverables Balance at December 31, $ $ $

Statutory Accounting (Tables)

Statutory Accounting (Tables)	12 Months Ended
	Dec. 31, 2015
Income Taxes
Reconciliation of (SAP) to GAAP	($ in thousands) 2015 2014 Shareholders’ equity (insurance subsidiaries only): Per statutory basis $ $ Adjustments for: Allowance for return commissions Allowance for policy cancellations Commissions payable Deferred acquisition costs Deferred income taxes Unrealized gain on investments available-for-sale Management fees Intangible assets Nonadmitted assets — Convertible securities — Other — Shareholders’ equity in accordance with GAAP $ $ ($ in thousands) 2015 2014 2013 Net income (insurance subsidiaries only): Per statutory basis $ $ $ Adjustments for: Allowance for return commissions Allowance for policy cancellations Commission expense Deferred acquisition costs Deferred income taxes Management fees Convertible securities — — Other Net income in accordance with GAAP $ $ $

Stock-based Payments (Tables)

Stock-based Payments (Tables)	12 Months Ended
	Dec. 31, 2015
Stock-based Payments
Schedule of nonvested stock activity	Weighted-Average Weighted-Average Restricted Grant Date Fair Value Stock Grant Date Fair Value Shares per Restricted Share Options per Stock Option Nonvested at January 1, 2015 $ $ Granted — — Forfeited — — Vested Nonvested at December 31, 2015
Schedule of stock option activity	A summary of stock option activity for the year ended December 31, 2015 is as follows : Weighted Weighted Weighted Weighted Average Average Share Average Average Number Exercise Price on Date Fair Remaining Aggregate of Awards Price of Exercise Value Contractual Life Intrinsic Value Outstanding, beginning of period $ $ — $ $ Granted — — — — — — Exercised/Released — — — — — — Outstanding, end of period — — Vested and exercisable, end of the period — — Vested and unvested exercisable, end of the period — — Vested and expected to vest, end of the period — —

Earnings Per Share (Tables)

Earnings Per Share (Tables)	12 Months Ended
	Dec. 31, 2015
Earnings Per Share
Schedule of reconciliation of the numerators and denominators of the basic and diluted per share calculations	Year Ended December 31, December 31, December 31, ($ in thousands, except for per share amounts) 2015 2014 2013 Numerator for both basic and diluted earnings per share: Net income (loss) $ $ $ Denominator for both basic and diluted earnings per share: Weighted-average common shares outstanding Dilutive effect of outstanding securities (determined using the treasury stock method) — Weighted-average common shares outstanding and potential common shares outstanding

Common Stock (Tables)

Common Stock (Tables)	12 Months Ended
	Dec. 31, 2015
Common Stock.
Summary of common stock repurchases	January 1 - ($ in thousands, except share and per share data) March 4, 2016 2015 Shares repurchased Average price per share $ $ Aggregate cost $ $ Authorization remaining at end of period $ $

Segment Information (Tables)

Segment Information (Tables)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Segment Information
Schedule of business segment information	December 31, 2015 ($ in thousands) Program Lender Corporate Total Revenues: Premiums earned $ $ $ — $ Commission income — — Ceding fees — — Net investment income — — Realized net investment gains — — Other income — Total revenues Expenses: Losses and loss adjustment expenses — Commissions — Taxes, licenses, and fees — General and administrative Interest expense — — Total expenses Income (loss) before income taxes Income tax expense — — Net income (loss) $ $ $ $ Supplemental Information: Gross premiums written $ $ $ — $ Net premiums written $ $ $ — $	December 31, 2014 ($ in thousands) Program Lender Corporate Total Revenues: Premiums earned $ $ $ — $ Commission income — — Ceding fees — — Net investment income — — Realized net investment gains — — Other income — Total revenues Expenses: Losses and loss adjustment expenses — Commissions — Taxes, licenses, and fees — General and administrative Founder special compensation — — Offering-related expenses — — Contract modification expense — — Interest expense — — Total expenses Income (loss) before income taxes Income tax expense/(benefit) — — Net income (loss) $ $ $ $ Supplemental Information: Gross premiums written $ $ $ — $ Net premiums written $ $ $ — $	December 31, 2013 ($ in thousands) Program Lender Corporate Total Revenues: Premiums earned $ $ $ — $ Commission income — — Ceding fees — — Net investment income — — Realized net investment gains — — Other income Total revenues Expenses: Losses and loss adjustment expenses — Commissions — Taxes, licenses, and fees — General and administrative Founder special compensation — — Interest expense — — Total expenses Income (loss) before income taxes Income tax expense/(benefit) — — Net income (loss) $ $ $ $ Supplemental Information: Gross premiums written $ $ $ — $ Net premiums written $ $ $ — $
Schedule of the financial assets of the Entity's segments	December 31, 2015 ($ in thousands) Program Lender Corporate Total Assets: Accounts receivable from agents, net $ $ $ — $ Reinsurance recoverable on paid losses — Reinsurance recoverables — Deferred income taxes, net — — Goodwill and intangible assets, net — Other assets Total assets $ $ $ $ Liabilities: Unpaid losses and loss adjustment expenses $ $ $ — $ Unearned premiums — Allowance for policy cancellations — — Deferred ceding fees — — Other liabilities Total liabilities $ $ $ $	December 31, 2014 ($ in thousands) Program Lender Corporate Total Assets: Accounts receivable from agents, net $ $ $ — $ Reinsurance recoverable on paid losses — Reinsurance recoverables — Deferred income taxes, net — — Goodwill and intangible assets, net — Other assets Total assets $ $ $ $ Liabilities: Unpaid losses and loss adjustment expenses $ $ $ — $ Unearned premiums — Allowance for policy cancellations — — Deferred ceding fees — — Other liabilities Total liabilities $ $ $ $
Schedule of quarterly financial data	2015 Quarters Ended ($ in thousands) Mar 31 Jun 30 Sep 30 Dec 31 Total revenues $ $ $ $ Total expenses Income (loss) before income taxes Income tax expense (benefit) Net income (loss) Basic earnings per share $ $ $ $ Diluted earnings per share 2014 Quarters Ended ($ in thousands) Mar 31 Jun 30 Sep 30 Dec 31 Total revenues $ $ $ $ Total expenses Income (loss) before income taxes Income tax expense (benefit) Net income (loss) Basic earnings per share $ $ $ $ Diluted earnings per share

Condensed Quarterly Financial50

Condensed Quarterly Financial Data - Unaudited (Tables)	12 Months Ended
	Dec. 31, 2015
Income Taxes
Schedule of quarterly financial data	2015 Quarters Ended ($ in thousands) Mar 31 Jun 30 Sep 30 Dec 31 Total revenues $ $ $ $ Total expenses Income (loss) before income taxes Income tax expense (benefit) Net income (loss) Basic earnings per share $ $ $ $ Diluted earnings per share 2014 Quarters Ended ($ in thousands) Mar 31 Jun 30 Sep 30 Dec 31 Total revenues $ $ $ $ Total expenses Income (loss) before income taxes Income tax expense (benefit) Net income (loss) Basic earnings per share $ $ $ $ Diluted earnings per share

Summary of Significant Accoun51

Summary of Significant Accounting Policies (Details)	Jun. 23, 2014	Dec. 31, 2015USD ($)	Sep. 30, 2015USD ($)	Jun. 30, 2015USD ($)	Mar. 31, 2015USD ($)	Dec. 31, 2014USD ($)	Sep. 30, 2014USD ($)	Jun. 30, 2014USD ($)	Mar. 31, 2014USD ($)	Dec. 31, 2015USD ($)	Dec. 31, 2015USD ($)item	Dec. 31, 2015USD ($)segment	Dec. 31, 2015USD ($)	Dec. 31, 2015USD ($)	Dec. 31, 2014USD ($)	Dec. 31, 2013USD ($)	Jan. 01, 2014USD ($)
Earnings Per Share
Stock split ratio	0.0014												0.0014
Goodwill and Intangible Assets
Impairments of goodwill														$ 0
Intangible assets impairments														0	$ 0	$ 0
Income Taxes
Uncertain tax positions		$ 0				$ 0				$ 0	$ 0	$ 0	$ 0	0	0
Income tax expense (benefit)		$ 7,260,000	$ 6,899,000	$ 5,658,000	$ 5,071,000	$ 4,462,000	$ 4,391,000	$ (19,685,000)	$ 1,136,000					$ 24,888,000	$ (9,696,000)	$ 2,787,000
Number of major segments											2	2
Capitalized threshold amount																	$ 1,000
Revised capitalized threshold amount																	$ 5,000
Minimum
Income Taxes
Estimated useful lives										3 years
Maximum
Income Taxes
Estimated useful lives										20 years

Investments (Details)

Investments (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Investments
Cost or Amortized Cos	$ 332,560	$ 306,438
Gross Unrealized Gains	6,322	7,451
Gross Unrealized Losses	(3,816)	(1,336)
Total investments	335,066	312,553
Fixed-maturity securities
Investments
Cost or Amortized Cos	327,764	305,019
Gross Unrealized Gains	5,486	6,228
Gross Unrealized Losses	(3,728)	(1,336)
Total investments	329,522	309,911
Government
Investments
Cost or Amortized Cos	18,890	13,896
Gross Unrealized Gains	124	195
Gross Unrealized Losses	(35)	(49)
Total investments	18,979	14,042
Government agency
Investments
Cost or Amortized Cos	2,025	2,325
Gross Unrealized Gains	31	57
Gross Unrealized Losses	(7)	(9)
Total investments	2,049	2,373
State and municipality
Investments
Cost or Amortized Cos	68,461	61,179
Gross Unrealized Gains	1,895	1,200
Gross Unrealized Losses	(14)	(27)
Total investments	70,342	62,352
Industrial and miscellaneous
Investments
Cost or Amortized Cos	132,797	108,125
Gross Unrealized Gains	2,139	2,582
Gross Unrealized Losses	(2,618)	(460)
Total investments	132,318	110,247
Residential mortgage-backed
Investments
Cost or Amortized Cos	80,566	96,610
Gross Unrealized Gains	1,213	1,825
Gross Unrealized Losses	(793)	(764)
Total investments	80,986	97,671
Commercial mortgage-backed
Investments
Cost or Amortized Cos	22,235	22,483
Gross Unrealized Gains	68	339
Gross Unrealized Losses	(150)	(27)
Total investments	22,153	22,795
Redeemable preferred stock
Investments
Cost or Amortized Cos	2,790	401
Gross Unrealized Gains	16	30
Gross Unrealized Losses	(111)
Total investments	2,695	431
Equity securities
Investments
Cost or Amortized Cos	4,796	1,419
Gross Unrealized Gains	836	1,223
Gross Unrealized Losses	(88)
Total investments	5,544	2,642
Non-redeemable preferred stock
Investments
Cost or Amortized Cos	4,012	1,407
Gross Unrealized Gains	422	806
Gross Unrealized Losses	(69)
Total investments	4,365	2,213
Common stock
Investments
Cost or Amortized Cos	784	12
Gross Unrealized Gains	414	417
Gross Unrealized Losses	(19)
Total investments	$ 1,179	$ 429

Investments (Details 2)

Investments (Details 2) $ in Thousands	12 Months Ended
	Dec. 31, 2015USD ($)item	Dec. 31, 2014USD ($)	Dec. 31, 2013USD ($)
Fair Value
Less Than 12 Months	$ 126,856
12 Months or More	18,031
Total	144,887
Unrealized Losses
Less Than 12 Months	(2,714)
12 Months or More	(1,102)
Total	$ (3,816)
Number of securities in unrealized loss position | item	237
Proceeds from sales of investments in fixed-maturity, equity and short-term securities	$ 39,100	$ 14,800	$ 16,000
Fixed-maturity securities
Fair Value
Less Than 12 Months	124,036	57,138
12 Months or More	18,031	28,539
Total	142,067	85,677
Unrealized Losses
Less Than 12 Months	(2,626)	(538)
12 Months or More	(1,102)	(798)
Total	(3,728)	(1,336)
Government
Fair Value
Less Than 12 Months	2,757	522
12 Months or More	1,290	3,094
Total	4,047	3,616
Unrealized Losses
Less Than 12 Months	(23)	(2)
12 Months or More	(12)	(47)
Total	(35)	(49)
Government agency
Fair Value
Less Than 12 Months	665
12 Months or More		685
Total	665	685
Unrealized Losses
Less Than 12 Months	(7)
12 Months or More		(9)
Total	(7)	(9)
State and municipality
Fair Value
Less Than 12 Months	405	4,164
12 Months or More	369	2,001
Total	774	6,165
Unrealized Losses
Less Than 12 Months	(1)	(10)
12 Months or More	(13)	(17)
Total	(14)	(27)
Industrial and miscellaneous
Fair Value
Less Than 12 Months	74,782	34,433
12 Months or More	2,440	2,637
Total	77,222	37,070
Unrealized Losses
Less Than 12 Months	(2,139)	(418)
12 Months or More	(479)	(42)
Total	(2,618)	(460)
Residential mortgage-backed
Fair Value
Less Than 12 Months	31,090	15,491
12 Months or More	13,227	19,428
Total	44,317	34,919
Unrealized Losses
Less Than 12 Months	(258)	(94)
12 Months or More	(535)	(670)
Total	(793)	(764)
Commercial mortgage-backed
Fair Value
Less Than 12 Months	13,317	2,528
12 Months or More	413	694
Total	13,730	3,222
Unrealized Losses
Less Than 12 Months	(147)	(14)
12 Months or More	(3)	(13)
Total	(150)	$ (27)
Redeemable preferred stock
Fair Value
Less Than 12 Months	1,020
12 Months or More	292
Total	1,312
Unrealized Losses
Less Than 12 Months	(51)
12 Months or More	(60)
Total	(111)
Equity securities
Fair Value
Less Than 12 Months	2,820
Total	2,820
Unrealized Losses
Less Than 12 Months	(88)
Total	(88)
Non-redeemable preferred stock
Fair Value
Less Than 12 Months	2,067
Total	2,067
Unrealized Losses
Less Than 12 Months	(69)
Total	(69)
Common stock
Fair Value
Less Than 12 Months	753
Total	753
Unrealized Losses
Less Than 12 Months	(19)
Total	$ (19)
Investment-grade
Unrealized Losses
Percentage of investments in unrealized loss position	87.00%

Investments (Details 3)

Investments (Details 3) $ in Thousands	12 Months Ended
	Dec. 31, 2015USD ($)item	Dec. 31, 2014USD ($)item	Dec. 31, 2013USD ($)
Realized gains:
Fixed-maturity securities	$ 3,101	$ 1,388	$ 1,861
Equity securities	548	34	171
Gross realized gains	3,649	1,422	2,032
Realized losses:
Fixed-maturity securities	(1,557)	(92)	(149)
Equity securities	(108)	(19)
Other-than-temporary impairment losses on fixed-maturity securities	(96)		(119)
Gross realized losses	(1,761)	(111)	(268)
Net realized investment gains	$ 1,888	$ 1,311	$ 1,764
Number of non-cash exchanges of an investment security | item	11	10
Non-cash consideration received for exchanges	$ 4,900	$ 2,800
Gains recognized on exchanges	$ 33	$ 320

Investments (Details 4)

Investments (Details 4) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Amortized Cost
Due in one year or less	$ 6,621
Due after one year through five years	99,836
Due after five years through ten years	105,469
Due after ten years	13,037
Total amortized cost for fixed maturity securities	327,764	$ 305,019
Fair value
Due in one year or less	6,734
Due after one year through five years	99,863
Due after five years through ten years	106,533
Due after ten years	13,253
Total fixed maturity securities	329,522	$ 309,911
Mortgage-backed securities
Fair value
Mortgage-backed securities collateralized by subprime residential loans	$ 1,000
Percentage of total investments which are collateralized by subprime residential loans	0.31%
Residential mortgage-backed
Amortized Cost
Residential mortgage-backed securities and Commercial mortgage-backed securities	$ 80,566
Fair value
Residential mortgage-backed securities and Commercial mortgage-backed securities	80,986
Commercial mortgage-backed
Amortized Cost
Residential mortgage-backed securities and Commercial mortgage-backed securities	22,235
Fair value
Residential mortgage-backed securities and Commercial mortgage-backed securities	$ 22,153

Investments (Details 5)

Investments (Details 5) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Net investment income
Interest on investments	$ 8,357	$ 5,254	$ 5,202
Dividends	301	135	107
Gross investment income	8,658	5,389	5,309
Investment expenses	(710)	(548)	(408)
Net investment income	7,948	4,841	$ 4,901
Fair value of fixed-maturity securities on deposit	53,500	$ 36,900
Net derivative gain related to embedded derivatives	$ 1,800

Deferred Acquisition Costs (Det

Deferred Acquisition Costs (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Deferred acquisition costs
Balance, beginning of year	$ 1,036	$ 1,095	$ 1,176
Capitalized costs	5,359	4,907	4,818
Amortization	(5,320)	(4,966)	(4,899)
Balance, end of year	$ 1,075	$ 1,036	$ 1,095

Property, Equipment, and Depr58

Property, Equipment, and Depreciation (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Property and equipment	$ 31,282	$ 31,239
Accumulated depreciation and amortization	(14,119)	(12,842)
Property and equipment, net	17,163	18,397
Depreciation and amortization	1,800	1,800	$ 1,900
Gains from sale of property and equipment	107	(47)	30
Land held for use
Property and equipment	3,443	3,443
Land held for sale
Property and equipment	1,034	1,034
Building and Building Improvements [Member]
Property and equipment	15,234	15,127
Transportation Equipment [Member]
Property and equipment	873	1,578
Furniture and Fixtures [Member]
Property and equipment	3,241	3,208
ComputerEquipmentAndSoftware[Member]
Property and equipment	7,457	6,849
Property, Plant and Equipment [Member]
Gains from sale of property and equipment	$ 107	$ 454	$ 30

Goodwill and Intangible Asset59

Goodwill and Intangible Assets (Details) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Goodwill and intangible assets
Goodwill and intangible assets	$ 5,958,000	$ 6,683,000
Goodwill	2,565,000	2,565,000
Accumulated Amortization Excluding Goodwill	(15,607,000)	(19,671,000)
Gross carrying amount	21,565,000	26,354,000
Impairments of goodwill	0
Expected Amortization Expense
2,016	720,000
2,017	682,000
2,018	637,000
2,019	256,000
2,020	243,000
Customer relationships/lists
Goodwill and intangible assets
Gross Carrying Amount Excluding Goodwill	19,000,000	20,450,000
Accumulated Amortization Excluding Goodwill	(15,607,000)	(16,332,000)
Definite-lived intangible assets, net of amortization	3,393,000	4,118,000
Amortization Expense	$ 725,000	765,000	$ 854,000
Expected useful lives of definite lived intangible assets	15 years
Non-compete agreements
Goodwill and intangible assets
Gross Carrying Amount Excluding Goodwill		3,339,000
Accumulated Amortization Excluding Goodwill		(3,339,000)
Amortization Expense	$ 0	458,000	$ 481,000
Non-compete agreements | Minimum
Goodwill and intangible assets
Expected useful lives of definite lived intangible assets	5 years
Non-compete agreements | Maximum
Goodwill and intangible assets
Expected useful lives of definite lived intangible assets	9 years
Program segment
Goodwill and intangible assets
Goodwill and intangible assets	$ 2,115,000	2,115,000
Goodwill	2,100,000	2,100,000
Lender segment
Goodwill and intangible assets
Goodwill and intangible assets	3,843,000	4,568,000
Goodwill	450,000	450,000
Definite-lived intangible assets, net of amortization	$ 3,400,000	$ 4,100,000

Subordinated Debentures (Detail

Subordinated Debentures (Details) $ in Thousands	Oct. 08, 2014USD ($)	Dec. 31, 2004USD ($)item	Dec. 31, 2015USD ($)item	Dec. 31, 2014USD ($)
Debt Instrument [Line Items]
Number of business trusts | item		4
Subordinated debentures			$ 44,500	$ 44,500
Gain (Loss) on Repurchase of Debt Instrument	$ 610			610
Number of years after which early redemption is allowed			5 years
Multiples in which the debt can be redeemed (including accrued interest)			$ 1
Variable rate (As a percent)			0.61%
Number of consecutive quarters for which payment of interest is deferred | item			20
Debt issuance costs amortization period			30 years
Affiliated Entity [Member]
Debt Instrument [Line Items]
Proceeds from trust preferred securities		$ 52,000
Other Assets [Member]
Debt Instrument [Line Items]
Debt issuance costs			$ 1,300
Accumulated amortization of debt issuance costs			529	486
Subordinated debentures
Debt Instrument [Line Items]
Proceeds from issuance of subordinated long-term debt		$ 53,600
Carrying value	7,500
Repurchase of subordinated debentures	6,750
Accrued interest	$ 49
Floating Rate Capital Securities 2032 Member
Debt Instrument [Line Items]
Subordinated debentures			17,500	17,500
Floating Rate Capital Securities January 2034 Member
Debt Instrument [Line Items]
Subordinated debentures			12,000	12,000
Floating Rate Capital Securities May 2034 Member
Debt Instrument [Line Items]
Subordinated debentures			$ 15,000	$ 15,000
London Interbank Offered Rate (LIBOR) [Member] | Floating Rate Capital Securities 2032 Member
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)			4.00%
London Interbank Offered Rate (LIBOR) [Member] | Floating Rate Capital Securities January 2034 Member
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)			4.10%
London Interbank Offered Rate (LIBOR) [Member] | Floating Rate Capital Securities May 2034 Member
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)			3.80%
Three-month LIBOR
Debt Instrument [Line Items]
Variable rate basis			three-month LIBOR

Income Tax Provision (Details)

Income Tax Provision (Details) - USD ($) $ in Thousands	Jan. 01, 2014	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Federal And State Income Tax Expense Benefit Abstract
Federal current										$ 24,019	$ 10,827	$ 6,014
State current										1,722	687	(1,169)
Federal deferred										(794)	(21,156)	(2,058)
State deferred										(59)	(54)
Deferred tax expense (benefit)										(853)	(21,210)	(2,058)
Federal income tax expense (benefit)										23,225	(10,329)	3,956
State income tax expense (benefit)										1,663	633	(1,169)
Total income tax expense (benefit)		$ 7,260	$ 6,899	$ 5,658	$ 5,071	$ 4,462	$ 4,391	$ (19,685)	$ 1,136	24,888	(9,696)	2,787
Deferred Tax Assets, Gross [Abstract]
Allowance for policy cancellations		20,864				19,425				20,864	19,425
Unpaid losses and loss adjustment expenses		156				172				156	172
Deferred ceding fees		10,192				8,264				10,192	8,264
Management fee		111				3,702				111	3,702
Compensation		3,638				2,034				3,638	2,034
Intangible assets		376				273				376	273
Unrealized losses on fixed maturities and other investment securities		1,305				471				1,305	471
Write-down of other-than-temporarily impaired investment securities		249				254				249	254
Other		147				34				147	34
Total deferred income tax assets		37,038				34,629				37,038	34,629
Deferred Tax Liabilities, Net [Abstract]
Unearned premiums		7,522				7,136				7,522	7,136
Unrealized gains on equity securities		292				428				292	428
Unrealized gains on fixed maturities and other investment securities		1,920				2,183				1,920	2,183
Deferred acquisition costs		376				363				376	363
Fixed assets		302				525				302	525
Other		418				130				418	130
Total deferred income tax liabilities		10,830				10,765				10,830	10,765
Net deferred income tax asset		26,208				23,864				26,208	23,864
Valuation allowance		0				0				0	0
Amount
Expected tax expense (benefit)										24,344	461	8,746
Exclusion of Subchapter S income											8,465	(4,478)
Change in tax status											(19,316)
Change in federal statutory rate											(75)
Accrual/adjustment prior year										(175)	174	(39)
Tax-exempt income										(432)	(304)	(275)
State income taxes										1,060	826	(1,205)
Meals and entertainment										94	61	36
Other										(3)	12	2
Total income tax expense (benefit)		7,260	$ 6,899	$ 5,658	$ 5,071	4,462	$ 4,391	$ (19,685)	$ 1,136	$ 24,888	$ (9,696)	$ 2,787
Effective Tax Rate
Expected tax expense (benefit) (as a percent)										35.00%	35.00%	34.30%
Exclusion of Subchapter S income (as a percent)											643.00%	(17.60%)
Change in tax status (as a percent)											(1467.20%)
Change in federal statutory rate (as a percent)											(5.70%)
Accrual/adjustment prior year										(0.20%)	13.20%	(0.20%)
Tax-exempt income (as a percent)										(0.60%)	(23.10%)	(1.10%)
State income taxes (as a percent)										1.50%	62.80%	(4.70%)
Meals and entertainment										0.10%	4.60%	0.10%
Other (as a percent)											0.80%
Total income tax expense (benefit) (as a percent)										35.80%	(736.60%)	10.80%
Income Tax Examination, Penalties and Interest Accrued [Abstract]
Income tax penalties and interest		0				0				$ 0	$ 0	$ 0
Carryforwards
Operating loss carryforwards		0								0
Capital loss carryforwards										0
Minimum
Effective Tax Rate
Expected tax expense (benefit) (as a percent)	34.30%
Maximum
Effective Tax Rate
Expected tax expense (benefit) (as a percent)	35.00%
Parent Company [Member]
Federal And State Income Tax Expense Benefit Abstract
Deferred tax expense (benefit)										(1,415)	(552)
Deferred Tax Liabilities, Net [Abstract]
Net deferred income tax asset		$ 1,968				$ 552				$ 1,968	$ 552

Reinsurance (Details)

Reinsurance (Details) - USD ($) $ in Thousands	3 Months Ended			12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Dec. 31, 2015	Dec. 31, 2014
Reinsurance
Additional minimum ceding fees	$ 1,000	$ 1,900	$ 1,300
Ceded unearned premiums	559,638			$ 559,638	$ 456,754
Ceded loss and loss adjustment expense reserves	1,352,022			1,352,022	1,199,780
Total reinsurance recoverables	1,911,660			1,911,660	1,656,534
Secured reinsurance recoverables	(1,527,335)			(1,527,335)	(1,209,032)
Unsecured reinsurance recoverables	$ 384,325			$ 384,325	$ 447,502
Fair value of the collateral held by SNIC, NISC and USIC as a percentage of the secured reinsurance recoverables				177.00%

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Fair Value Measurements
Fixed-maturity securities	$ 329,522	$ 309,911
Equity securities	5,544	2,642
Level 3 activity	0	0
Transfers between Level 1, Level 2, and Level 3	0	0
Recurring basis
Fair Value Measurements
Total	335,066	312,553
Recurring basis | Fixed-maturity securities
Fair Value Measurements
Fixed-maturity securities	329,522	309,911
Recurring basis | Government
Fair Value Measurements
Fixed-maturity securities	18,979	14,042
Recurring basis | Government agency
Fair Value Measurements
Fixed-maturity securities	2,049	2,373
Recurring basis | State and municipality
Fair Value Measurements
Fixed-maturity securities	70,342	62,352
Recurring basis | Industrial and miscellaneous
Fair Value Measurements
Fixed-maturity securities	132,318	110,247
Recurring basis | Residential mortgage-backed
Fair Value Measurements
Fixed-maturity securities	80,986	97,671
Recurring basis | Commercial mortgage-backed
Fair Value Measurements
Fixed-maturity securities	22,153	22,795
Recurring basis | Redeemable preferred stock
Fair Value Measurements
Fixed-maturity securities	2,695	431
Recurring basis | Equity securities
Fair Value Measurements
Equity securities	5,544	2,642
Recurring basis | Non-redeemable preferred stock
Fair Value Measurements
Equity securities	4,365	2,213
Recurring basis | Common stock
Fair Value Measurements
Equity securities	1,179	429
Recurring basis | Level 2
Fair Value Measurements
Total	335,066	312,553
Fair value of embedded derivatives	8,600
Recurring basis | Level 2 | Fixed-maturity securities
Fair Value Measurements
Fixed-maturity securities	329,522	309,911
Recurring basis | Level 2 | Government
Fair Value Measurements
Fixed-maturity securities	18,979	14,042
Recurring basis | Level 2 | Government agency
Fair Value Measurements
Fixed-maturity securities	2,049	2,373
Recurring basis | Level 2 | State and municipality
Fair Value Measurements
Fixed-maturity securities	70,342	62,352
Recurring basis | Level 2 | Industrial and miscellaneous
Fair Value Measurements
Fixed-maturity securities	132,318	110,247
Recurring basis | Level 2 | Residential mortgage-backed
Fair Value Measurements
Fixed-maturity securities	80,986	97,671
Recurring basis | Level 2 | Commercial mortgage-backed
Fair Value Measurements
Fixed-maturity securities	22,153	22,795
Recurring basis | Level 2 | Redeemable preferred stock
Fair Value Measurements
Fixed-maturity securities	2,695	431
Recurring basis | Level 2 | Equity securities
Fair Value Measurements
Equity securities	5,544	2,642
Recurring basis | Level 2 | Non-redeemable preferred stock
Fair Value Measurements
Equity securities	4,365	2,213
Recurring basis | Level 2 | Common stock
Fair Value Measurements
Equity securities	$ 1,179	$ 429

Premiums Earned (Details)

Premiums Earned (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Premiums Earned, Net [Abstract]
Premiums written	$ 1,262,990	$ 1,032,608	$ 806,732
Premiums assumed	2,097	1,517	3,233
Premiums ceded	(1,144,579)	(935,051)	(723,192)
Net premiums retained	120,508	99,074	86,773
Change in net unearned premiums	(2,440)	(2,424)	(2,395)
Total premiums earned	$ 118,068	$ 96,650	$ 84,378
Premiums assumed as a % of net premiums retained	1.70%	1.50%	3.70%

Losses and Loss Adjustment Ex65

Losses and Loss Adjustment Expenses (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Policyholder Benefits and Claims Incurred, Net [Abstract]
Direct losses and loss adjustment expenses	$ 696,249	$ 714,708	$ 561,347
Assumed losses and loss adjustment expenses	1,225	2,469	193
Ceded losses and loss adjustment expenses	(641,721)	(676,356)	(529,450)
Total net losses and loss adjustment expenses	55,753	40,821	32,090
Liability for Unpaid Claims and Claims Adjustment Expense, Incurred Claims [Abstract]
Current year	53,965	41,314	33,163
Prior year	1,788	(493)	(1,073)
Total incurred	55,753	40,821	32,090
Liability for Unpaid Claims and Claims Adjustment Expense, Claims Paid [Abstract]
Balance at January 1	1,209,905	1,016,641	975,708
Reinsurance recoverables	(1,199,780)	(1,006,892)	(965,965)
Net balance at January 1	10,125	9,749	9,743
Current year	45,239	34,251	27,388
Prior year	7,887	6,194	4,696
Total paid	53,126	40,445	32,084
Net balance at December 31	12,752	10,125	9,749
Reinsurance recoverable	1,352,022	1,199,780	1,006,892
Balance at December 31	1,364,774	1,209,905	1,016,641
Estimate of ultimate losses incurred	1,788	(493)	(1,073)
Favorable and unfavorable development	1,800	(500)	(1,100)
Program segment
Policyholder Benefits and Claims Incurred, Net [Abstract]
Total net losses and loss adjustment expenses	1,987	217	465
Liability for Unpaid Claims and Claims Adjustment Expense, Claims Paid [Abstract]
Balance at January 1	1,201,279
Balance at December 31	1,354,211	1,201,279
Favorable and unfavorable development	(2,000)		(400)
Lender segment
Policyholder Benefits and Claims Incurred, Net [Abstract]
Total net losses and loss adjustment expenses	53,766	40,604	31,625
Liability for Unpaid Claims and Claims Adjustment Expense, Claims Paid [Abstract]
Balance at January 1	8,626
Balance at December 31	$ 10,563	8,626
Favorable and unfavorable development		$ 706	$ 1,500

Statutory Accounting (Details)

Statutory Accounting (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Reconciliations of stockholder's equity
Shareholders’ equity in accordance with GAAP	$ 263,457				$ 240,872				$ 263,457	$ 240,872	$ 145,354
Reconciliations of net income
Net income (loss)	$ 13,914	$ 12,396	$ 9,682	$ 8,674	6,847	$ 6,959	$ 607	$ (3,400)	$ 44,666	11,013	22,711
Maximum percentage of statutory surplus	10.00%								10.00%
Unrestricted net assets available for dividends	$ 23,000								$ 23,000
Subsidiaries [Member]
Reconciliations of stockholder's equity
Per statutory basis	229,830				215,842				229,830	215,842
Allowance for return commissions	31,001				28,846				31,001	28,846
Allowance for policy cancellations	(26,009)				(23,672)				(26,009)	(23,672)
Commissions payable	14,681				14,105				14,681	14,105
Deferred acquisition costs	14,616				13,149				14,616	13,149
Deferred income taxes	(6,754)				(7,430)				(6,754)	(7,430)
Unrealized gain on investments available-for-sale	2,075				5,586				2,075	5,586
Management fees	(18,208)				(16,813)				(18,208)	(16,813)
Intangible assets	1,947				1,947				1,947	1,947
Nonadmitted assets					13					13
Convertible securities	1,142								1,142
Other					16					16
Shareholders’ equity in accordance with GAAP	244,321				231,589				244,321	231,589
Reconciliations of net income
Net income - Per Statutory basis									15,922	6,780	5,047
Allowance for return commissions									2,155	7,571	3,987
Allowance for policy cancellations									(2,337)	(7,028)	(2,551)
Commission expense									576	3,508	1,874
Deferred acquisition costs									1,467	(84)	1,952
Deferred income taxes									(2,353)	195	2,058
Management fees									(1,395)	(2,975)	(3,947)
Convertible securities									1,142
Other									(16)	(129)	(38)
Net income (loss)									15,161	7,838	$ 8,382
Amount of statutory capital and surplus	229,830				215,842				229,830	215,842
SNIC (Member)
Reconciliations of net income
Minimum statutory capital and surplus	5,000				5,000				5,000	5,000
NSIC (Member)
Reconciliations of net income
Minimum statutory capital and surplus	5,000				5,000				5,000	5,000
USIC (Member)
Reconciliations of net income
Minimum statutory capital and surplus	$ 750				$ 750				$ 750	$ 750

Related-Party Transaction (Deta

Related-Party Transaction (Details) - USD ($)	Jun. 25, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Related Party Transaction
Founder special compensation			$ 17,914,000	$ 10,202,000
Trace Air Inc
Related Party Transaction
Aircraft lease payment (per hour)	$ 1,800
Minimum monthly lease rate	$ 36,000
Operating and maintenance cost		$ 0	359,000	$ 692,000
Trace and Luke Ledbetter [Member] | Private placement
Related Party Transaction
Founder special compensation			$ 513,000
Lonnie Ledbetter
Related Party Transaction
Consulting agreement term			1 year
Consulting service payment		$ 250,000	$ 250,000

401(k) Profit-Sharing Plan an68

401(k) Profit-Sharing Plan and Trust (Details) - USD ($) $ in Millions	Dec. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Minimum age of officers and employees covered under plan		18 years
Contribution required to made by employer which match with employees contribution (as a percent)	50.00%
Eligible employees compensation (as a percent)	6.00%
Employer contribution expense		$ 1.2	$ 1.1	$ 1
First One Percent Member
Contribution required to made by employer which match with employees contribution (as a percent)		100.00%
Eligible employees compensation (as a percent)		1.00%
Next Five Percent Member
Contribution required to made by employer which match with employees contribution (as a percent)		50.00%
Eligible employees compensation (as a percent)		5.00%

Stock-based Payments (Details)

Stock-based Payments (Details) - USD ($) $ in Thousands	Jun. 25, 2015	Mar. 30, 2015	Jul. 09, 2014	Jun. 25, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012	May. 29, 2014
Stock-based Payments
Share-based Compensation					$ 4,142	$ 2,012
Long-Term Incentive Plan 2014
Stock-based Payments
Granted (in shares)			38,500
Share-based Compensation					4,100	2,000	$ 0
Tax benefits recognized from stock options and stock grants					1,400	688	0	$ 0
Total unrecognized compensation					$ 4,900
Weighted average period					1 year 6 months
Total fair value of stock awards that vested					$ 3,900	0	$ 0
Shares available for grant					1,300,000
Long-Term Incentive Plan 2014 | Employee and non-employee director
Stock-based Payments
Shares issued									4,400,000
Parent Company [Member]
Stock-based Payments
Share-based Compensation					$ 4,142	$ 2,012
Non-qualified stock options | Long-Term Incentive Plan 2014 | Executive officers and certain employees
Stock-based Payments
Granted (in shares)				2,783,873
Vesting period				3 years
Average assumptions used to value stock-based payments
Volatility (as a percent)				32.96%
Expiration term				10 years
Expected term				5 years 6 months
Risk-free interest rate (as a percent)				1.85%
Dividend yield (as a percent)				0.40%
Forfeitures expected (in shares)				0
Restricted Shares | Long-Term Incentive Plan 2014
Stock-based Payments
Granted (in shares)				12,000
Vesting period				1 year
Restricted Shares | Long-Term Incentive Plan 2014 | Non-employee directors
Stock-based Payments
Vesting period	1 year
Shares granted or awarded	11,028
Performance based restricted stock | Long-Term Incentive Plan 2014 | Certain officers
Stock-based Payments
Shares granted or awarded		230,060
Performance based restricted stock | Long-Term Incentive Plan 2014 | Certain officers | Share-based Compensation Award, Tranche One [Member]
Stock-based Payments
Vesting period		1 year
Performance based restricted stock | Long-Term Incentive Plan 2014 | Certain officers | Share-based Compensation Award, Tranche Two [Member]
Stock-based Payments
Vesting period		2 years
Performance based restricted stock | Long-Term Incentive Plan 2014 | Certain officers | Share-based Compensation Award, Tranche Three [Member]
Stock-based Payments
Vesting period		3 years

Stock-based Payments (Details 2

Stock-based Payments (Details 2)	12 Months Ended
	Dec. 31, 2015$ / sharesshares
Restricted Shares
Restricted Shares
Nonvested (in shares)	12,000
Granted (in shares)	241,088
Forfeited (in shares)	(17,152)
Vested (in shares)	(91,574)
Nonvested (in shares)	144,362
Weighted-Average Grant Date Fair Value per Restricted Share
Nonvested (in dollars per share) | $ / shares	$ 10
Granted (in dollars per share) | $ / shares	10.02
Forfeited (in dollars per share) | $ / shares	9.98
Vested (in dollars per share) | $ / shares	9.98
Nonvested (in dollars per share) | $ / shares	$ 10.05
Stock Options
Stock Options
Nonvested (in shares)	2,783,873
Granted (in shares)
Vested (in shares)	(927,955)
Nonvested (in shares)	1,855,918
Weighted-Average Grant Date Fair Value per Stock Option
Nonvested (in dollars per share) | $ / shares	$ 3.22
Vested (in dollars per share) | $ / shares	3.22
Nonvested (in dollars per share) | $ / shares	$ 3.22

Stock-based Payments (Details 3

Stock-based Payments (Details 3) - Stock Options	12 Months Ended
	Dec. 31, 2015USD ($)$ / sharesshares	Dec. 31, 2014USD ($)$ / sharesshares
Number of Awards
Outstanding, beginning of period (in shares) | shares	2,783,873
Granted (in shares) | shares
Exercised/Released (in shares) | shares
Outstanding, end of period (in shares) | shares	2,783,873	2,783,873
Vested and exercisable, end of the period (in shares) | shares	927,955
Vested and unvested exercisable, end of the period (in shares) | shares	927,955
Vested and expected to vest, end of the period (in shares) | shares	2,783,873
Weighted Average Exercise Price
Outstanding, beginning of period (in dollars per share)	$ 10
Granted (in dollars per share)
Exercised/Released (in dollars per share)
Outstanding, end of period (in dollars per share)	$ 10	$ 10
Vested and exercisable, end of the period (in dollars per share)	10
Vested and unvested exercisable, end of the period (in dollars per share)	10
Vested and expected to vest, end of the period (in dollars per share)	$ 10
Weighted Average Fair Value
Weighted average fair value of options outstanding (in dollars per share)	3.22	3.22
Vested and exercisable, end of the period (in dollars per share)	3.22
Vested and unvested exercisable, end of the period (in dollars per share) | $	$ 3.22
Vested and expected to vest, end of the period	3.22
Weighted Average Remaining Contractual Life
Outstanding (in years)	8 years 6 months	9 years 6 months
Vested and exercisable, end of the period (in years)	8 years 6 months
Vested and unvested exercisable, end of the period (in years)	8 years 6 months
Vested and expected to vest, end of the period (in years)	8 years 6 months
Aggregate Intrinsic Value
Outstanding (in dollars) | $		$ 5,512,069

Concentration of Risk (Details)

Concentration of Risk (Details) - item	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Reinsurer
Concentration of Risk
Number of reinsurers	5
Reinsurer | Unsecured reinsurance recoverables | One reinsurer
Concentration of Risk
Concentration of risk (as a percent)	14.00%
Reinsurer | Unsecured reinsurance recoverables | Two reinsurer
Concentration of Risk
Concentration of risk (as a percent)	14.00%
Reinsurer | Unsecured reinsurance recoverables | Three reinsurer
Concentration of Risk
Concentration of risk (as a percent)	8.00%
Reinsurer | Unsecured reinsurance recoverables | Four reinsurer
Concentration of Risk
Concentration of risk (as a percent)	8.00%
Reinsurer | Unsecured reinsurance recoverables | Five reinsurer
Concentration of Risk
Concentration of risk (as a percent)	7.00%
Geographic concentration risk | Gross premiums written | California Texas New York and Florida
Concentration of Risk
Concentration of risk (as a percent)	57.00%	53.00%	52.00%

Leases (Details)

Leases (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Leases
Rental income	$ 2.1	$ 1.4
Lease termination fees	$ 1.5

Commitments and Contingencies (

Commitments and Contingencies (Details) - USD ($) $ in Thousands	May. 19, 2014	Dec. 31, 2014
Commitments and Contingencies
Contract modification expense		$ 17,800
Alliance | CUNA
Commitments and Contingencies
Automatic renewal term	3 years
Contract modification expense	$ 17,800

Earnings Per Share (Details)

Earnings Per Share (Details) $ in Thousands	Jun. 23, 2014	Dec. 31, 2015USD ($)	Sep. 30, 2015USD ($)	Jun. 30, 2015USD ($)	Mar. 31, 2015USD ($)	Dec. 31, 2014USD ($)	Sep. 30, 2014USD ($)	Jun. 30, 2014USD ($)	Mar. 31, 2014USD ($)	Dec. 31, 2015USD ($)shares	Dec. 31, 2014USD ($)shares	Dec. 31, 2013USD ($)shares
Earnings Per Share
Stock split ratio	0.0014									0.0014
Numerator for both basic and diluted earnings per share:
Net income (loss) | $		$ 13,914	$ 12,396	$ 9,682	$ 8,674	$ 6,847	$ 6,959	$ 607	$ (3,400)	$ 44,666	$ 11,013	$ 22,711
Denominator for both basic and diluted earnings per share:
Weighted-average common shares outstanding (in shares)										44,165,458	39,383,641	34,176,896
Dilutive effect of outstanding securities (determined using the treasury stock method) (in shares)										23,135	6,214
Weighted-average common shares outstanding and potential common shares outstanding (in shares)										44,188,593	39,389,855	34,176,896

Common Stock (Details)

Common Stock (Details) - USD ($) $ / shares in Units, $ in Thousands	Jun. 25, 2014	Mar. 04, 2016	Dec. 31, 2015	Oct. 12, 2015
Common Stock
Amount contributed to the capital of entities insurance subsidiaries	$ 50,000
Amount of shares authorized for repurchase				$ 50,000
Purchase price including commissions			$ 17,300
Purchase price payable			$ 2,800
Share repurchase agreement
Stock Repurchased and Retired During Period, Shares		173,521	1,788,640
Average price per share		$ 9.31	$ 9.62
Aggregate cost		$ 1,615	$ 17,203
Authorization remaining at end of period		$ 31,182	$ 32,797
Alliance | CUNA
Common Stock
Pre-tax payments	$ 17,800
Common stock
Common Stock
Number of common stock shares purchased from certain shareholders pursuant to stock redemption agreement	21,030,294
Value of common stock shares purchased from certain shareholders pursuant to stock redemption agreement	$ 190,600
Common stock | Private placement
Common Stock
Stock Issued During Period, Shares, New Issues	31,050,000
Net proceeds received	$ 280,600

Segment Information (Details)

Segment Information (Details) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2015USD ($)	Sep. 30, 2015USD ($)	Jun. 30, 2015USD ($)	Mar. 31, 2015USD ($)	Dec. 31, 2014USD ($)	Sep. 30, 2014USD ($)	Jun. 30, 2014USD ($)	Mar. 31, 2014USD ($)	Dec. 31, 2015item	Dec. 31, 2015segment	Dec. 31, 2015USD ($)	Dec. 31, 2014USD ($)	Dec. 31, 2013USD ($)
Business segment information
Number of Operating Segments									2	2
Number of business segments | segment										3
Revenues:
Premiums earned											$ 118,068	$ 96,650	$ 84,378
Commission income											1,465	1,533	2,031
Ceding fees											67,956	45,732	32,898
Net investment income											7,948	4,841	4,901
Realized net investment gains (losses)											1,888	1,311	1,764
Other income											1,623	4,460	2,531
Total revenues	$ 55,300	$ 51,151	$ 46,368	$ 46,129	$ 43,026	$ 40,571	$ 35,403	$ 35,527			198,948	154,527	128,503
Expenses:
Losses and loss adjustment expenses											55,753	40,821	32,090
Commissions											5,502	3,882	2,378
Taxes, licenses, and fees											3,130	2,832	2,594
General and administrative											62,978	58,891	53,418
Founder special compensation												17,914	10,202
Offering-related expenses												8,833
Contract modification expense												17,800
Interest expense											2,031	2,237	2,323
Total expenses	34,126	31,856	31,028	32,384	31,717	29,221	54,481	37,791			129,394	153,210	103,005
Income (loss) before income taxes	21,174	19,295	15,340	13,745	11,309	11,350	(19,078)	(2,264)			69,554	1,317	25,498
Total income tax expense (benefit)	7,260	6,899	5,658	5,071	4,462	4,391	(19,685)	1,136			24,888	(9,696)	2,787
Net income (loss)	$ 13,914	$ 12,396	$ 9,682	$ 8,674	$ 6,847	$ 6,959	$ 607	$ (3,400)			44,666	11,013	22,711
Supplemental Information for Property, Casualty Insurance Underwriters [Abstract]
Gross premiums written											1,265,087	1,034,125	809,965
Net premiums written											120,508	99,074	86,773
Program segment
Business segment information
Depreciation, Depletion and Amortization											343	397	286
Revenues:
Premiums earned											(1)	(4)	(501)
Ceding fees											67,956	45,732	32,898
Other income													3
Total revenues											67,955	45,728	32,400
Expenses:
Losses and loss adjustment expenses											1,987	217	465
Commissions											5	2	389
Taxes, licenses, and fees											14	8	10
General and administrative											12,446	10,855	11,010
Total expenses											14,452	11,082	11,874
Income (loss) before income taxes											53,503	34,646	20,526
Net income (loss)											53,503	34,646	20,526
Supplemental Information for Property, Casualty Insurance Underwriters [Abstract]
Gross premiums written											1,119,125	909,501	691,067
Net premiums written											(3)	(5)	(1,018)
Lender segment
Business segment information
Depreciation, Depletion and Amortization											1,400	1,400	1,300
Revenues:
Premiums earned											118,069	96,654	84,879
Commission income											1,465	1,533	2,031
Other income											1,498	1,266	1,101
Total revenues											121,032	99,453	88,011
Expenses:
Losses and loss adjustment expenses											53,766	40,604	31,625
Commissions											5,497	3,880	1,989
Taxes, licenses, and fees											3,116	2,824	2,584
General and administrative											39,837	38,995	36,020
Contract modification expense												17,800
Total expenses											102,216	104,103	72,218
Income (loss) before income taxes											18,816	(4,650)	15,793
Net income (loss)											18,816	(4,650)	15,793
Supplemental Information for Property, Casualty Insurance Underwriters [Abstract]
Gross premiums written											145,962	124,624	118,898
Net premiums written											120,511	99,079	87,791
Corporate
Revenues:
Net investment income											7,948	4,841	4,901
Realized net investment gains (losses)											1,888	1,311	1,764
Other income											125	3,194	1,427
Total revenues											9,961	9,346	8,092
Expenses:
General and administrative											10,695	9,041	6,388
Founder special compensation												17,914	10,202
Offering-related expenses												8,833
Interest expense											2,031	2,237	2,323
Total expenses											12,726	38,025	18,913
Income (loss) before income taxes											(2,765)	(28,679)	(10,821)
Total income tax expense (benefit)											24,888	(9,696)	2,787
Net income (loss)											(27,653)	(18,983)	(13,608)
Parent Company [Member]
Revenues:
Total revenues											48,896	13,019	22,711
Expenses:
General and administrative											6,503	3,086
Total expenses											6,503	3,086
Income (loss) before income taxes											42,393	9,933	22,711
Net income (loss)											$ 44,666	$ 11,013	$ 22,711

Segment Information (Details 2)

Segment Information (Details 2) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Assets [Abstract]
Accounts receivable from agents, net	$ 23,913	$ 18,528
Reinsurance recoverable on paid losses	1,187	1,200
Reinsurance recoverables	1,911,660	1,656,534
Deferred income taxes, net	26,208	23,864
Goodwill and intangible assets, net	5,958	6,683
Other assets	419,392	384,955
Total assets	2,388,318	2,091,764
Liabilities
Unpaid losses and loss adjustment expenses	1,364,774	1,209,905	$ 1,016,641	$ 975,708
Unearned premiums	585,448	480,124
Allowance for policy cancellations	59,610	55,500	39,623	$ 32,775
Deferred ceding fees	29,119	23,612
Other liabilities	85,910	81,751
Total liabilities	2,124,861	1,850,892
Stockholders' Equity Attributable to Parent [Abstract]
Common stock, $.001 par value (150,000,000 shares authorized; 42,699,550 and 44,247,102 shares issued at December 31, 2015 and December 31, 2014, respectively)	43	44
Additional paid-in capital	224,719	220,577
Retained earnings	37,322	16,108
Accumulated other comprehensive income	1,373	4,143
Total shareholders' equity	263,457	240,872	$ 145,354
Total liabilities and shareholders' equity	2,388,318	2,091,764
Program segment
Assets [Abstract]
Accounts receivable from agents, net	23,869	18,349
Reinsurance recoverable on paid losses	92	57
Reinsurance recoverables	1,904,605	1,650,205
Goodwill and intangible assets, net	2,115	2,115
Other assets	4,423	7,245
Total assets	1,935,104	1,677,971
Liabilities
Unpaid losses and loss adjustment expenses	1,354,211	1,201,279
Unearned premiums	554,425	451,993
Deferred ceding fees	29,119	23,612
Other liabilities	21,088	19,990
Total liabilities	1,958,843	1,696,874
Lender segment
Assets [Abstract]
Accounts receivable from agents, net	44	179
Reinsurance recoverable on paid losses	1,095	1,143
Reinsurance recoverables	7,055	6,329
Goodwill and intangible assets, net	3,843	4,568
Other assets	4,557	4,051
Total assets	16,594	16,270
Liabilities
Unpaid losses and loss adjustment expenses	10,563	8,626
Unearned premiums	31,023	28,131
Allowance for policy cancellations	59,610	55,500
Other liabilities	6,176	6,603
Total liabilities	107,372	98,860
Corporate
Assets [Abstract]
Deferred income taxes, net	26,208	23,864
Other assets	410,412	373,659
Total assets	436,620	397,523
Liabilities
Other liabilities	58,646	55,158
Total liabilities	58,646	55,158
Parent Company [Member]
Assets [Abstract]
Deferred income taxes, net	1,968	552
Total assets	266,375	242,550
Liabilities
Total liabilities	2,918	1,678
Stockholders' Equity Attributable to Parent [Abstract]
Common stock, $.001 par value (150,000,000 shares authorized; 42,699,550 and 44,247,102 shares issued at December 31, 2015 and December 31, 2014, respectively)	43	44
Additional paid-in capital	224,719	220,577
Retained earnings	37,322	16,108
Accumulated other comprehensive income	1,373	4,143
Total shareholders' equity	263,457	240,872
Total liabilities and shareholders' equity	$ 266,375	$ 242,550

Condensed Quarterly Financial79

Condensed Quarterly Financial Data - Unaudited (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended										12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Total revenues	$ 55,300	$ 51,151	$ 46,368	$ 46,129	$ 43,026	$ 40,571	$ 35,403	$ 35,527			$ 198,948	$ 154,527	$ 128,503
Total expenses	34,126	31,856	31,028	32,384	31,717	29,221	54,481	37,791			129,394	153,210	103,005
Income (loss) before income taxes	21,174	19,295	15,340	13,745	11,309	11,350	(19,078)	(2,264)			69,554	1,317	25,498
Income tax expense (benefit)	7,260	6,899	5,658	5,071	4,462	4,391	(19,685)	1,136			24,888	(9,696)	2,787
Net income	$ 13,914	$ 12,396	$ 9,682	$ 8,674	$ 6,847	$ 6,959	$ 607	$ (3,400)			$ 44,666	$ 11,013	$ 22,711
Basic earnings per share (in dollars per share)	$ 0.32	$ 0.28	$ 0.22	$ 0.20	$ 0.15	$ 0.16	$ 0.02	$ (0.10)			$ 1.01	$ 0.28	$ 0.66
Diluted earnings per share (in dollars per share)	$ 0.32	$ 0.28	$ 0.22	$ 0.20	$ 0.15	$ 0.16	$ 0.02	$ (0.10)			$ 1.01	$ 0.28	$ 0.66
Additional minimum ceding fees	$ 1,000	$ 1,900	$ 1,300
Offering expenses					$ 603	$ 1,100	$ 7,100
Founder special compensation expenses							6,700	$ 11,200	$ 202	$ 10,000
Contract modification expenses							$ 17,800
Parent Company [Member]
Total revenues											$ 48,896	$ 13,019	$ 22,711
Total expenses											6,503	3,086
Income (loss) before income taxes											42,393	9,933	22,711
Net income											$ 44,666	$ 11,013	$ 22,711

Subsequent Events (Details)

Subsequent Events (Details)	12 Months Ended
	Dec. 31, 2015item
Subsequent Events
Number of items that required adjustment or disclosure	0

Consolidated Balance Sheets (81

Consolidated Balance Sheets (Parent company only) (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Assets
Cash and cash equivalents	$ 51,770	$ 38,348	$ 69,431	$ 35,079
Income taxes receivable	3,330
Deferred income taxes, net	26,208	23,864
Other assets	5,113	6,229
Total assets	2,388,318	2,091,764
Liabilities
Income taxes payable		1,762
Other liabilities	35,151	28,642
Total liabilities	2,124,861	1,850,892
Shareholders' equity
Common stock, $.001 par value (150,000,000 shares authorized; 42,699,550 and 44,247,102 shares issued at December 31, 2015 and December 31, 2014, respectively)	43	44
Additional paid-in capital	224,719	220,577
Retained earnings	37,322	16,108
Accumulated other comprehensive income	1,373	4,143
Total shareholders' equity	263,457	240,872	$ 145,354
Total liabilities and shareholders' equity	2,388,318	2,091,764
Parent Company [Member]
Assets
Cash and cash equivalents	982	57
Investment in subsidiaries	262,892	241,167
Income taxes receivable		57
Deferred income taxes, net	1,968	552
Other assets	533	717
Total assets	266,375	242,550
Liabilities
Income taxes payable	11
Other liabilities	2,873
Other payables, affiliate	34	1,678
Total liabilities	2,918	1,678
Shareholders' equity
Common stock, $.001 par value (150,000,000 shares authorized; 42,699,550 and 44,247,102 shares issued at December 31, 2015 and December 31, 2014, respectively)	43	44
Additional paid-in capital	224,719	220,577
Retained earnings	37,322	16,108
Accumulated other comprehensive income	1,373	4,143
Total shareholders' equity	263,457	240,872
Total liabilities and shareholders' equity	$ 266,375	$ 242,550

Consolidated Balance Sheets - P

Consolidated Balance Sheets - Parenthetical (Parent company only) (Details 2) - $ / shares	Dec. 31, 2015	Dec. 31, 2014
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	150,000,000	150,000,000
Common stock, shares issued	42,699,550	44,247,102
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Parent Company [Member]
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	150,000,000	150,000,000
Common stock, shares issued	42,699,550	44,247,102
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0

Consolidated Statements of In83

Consolidated Statements of Income (Parent company only) (Details 3) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Revenues:
Total revenues	$ 55,300	$ 51,151	$ 46,368	$ 46,129	$ 43,026	$ 40,571	$ 35,403	$ 35,527	$ 198,948	$ 154,527	$ 128,503
Expenses:
General and administrative									62,978	58,891	53,418
Total expenses	34,126	31,856	31,028	32,384	31,717	29,221	54,481	37,791	129,394	153,210	103,005
Income (loss) before income taxes	21,174	19,295	15,340	13,745	11,309	11,350	(19,078)	(2,264)	69,554	1,317	25,498
Income taxes:
Current tax expense (benefit)									25,741	11,514	4,845
Deferred tax expense (benefit)									(853)	(21,210)	(2,058)
Net income (loss)	$ 13,914	$ 12,396	$ 9,682	$ 8,674	$ 6,847	$ 6,959	$ 607	$ (3,400)	44,666	11,013	22,711
Parent Company [Member]
Revenues:
Equity in earnings of subsidiaries									48,896	13,019	22,711
Total revenues									48,896	13,019	22,711
Expenses:
General and administrative									6,503	3,086
Total expenses									6,503	3,086
Income (loss) before income taxes									42,393	9,933	22,711
Income taxes:
Current tax expense (benefit)									(858)	(528)
Deferred tax expense (benefit)									(1,415)	(552)
Net income (loss)									$ 44,666	$ 11,013	$ 22,711

Consolidated Statements of Ca84

Consolidated Statements of Cash Flows (Parent company only) (Details 4) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Operating activities
Net income	$ 13,914	$ 12,396	$ 9,682	$ 8,674	$ 6,847	$ 6,959	$ 607	$ (3,400)	$ 44,666	$ 11,013	$ 22,711
Adjustments to Reconcile Net Income (Loss) to Cash Provided by (Used in) Operating Activities [Abstract]
Deferred income taxes									(853)	(21,210)	(2,058)
Share-based compensation									4,142	2,012
Change in
Income taxes receivable									(5,092)	3,213	(1,740)
Other assets									1,116	47	(859)
Other liabilities, affiliate										(100)	(37)
Net cash provided by (used in) operating activities									60,996	23,176	33,856
Investing activities
Net cash provided by (used in) investing activities									(26,994)	(127,975)	15,791
Financing activities
Dividends paid									(6,165)	(16,683)	(15,295)
Proceeds from issuances of common stock										289,322
Costs directly attributable to issuance of common stock										(1,578)
Repurchase of common stock									(14,415)	(190,595)
Net cash provided by (used in) financing activities									(20,580)	73,716	(15,295)
Net change in cash and cash equivalents									13,422	(31,083)	34,352
Cash and cash equivalents at beginning of period				38,348				$ 69,431	38,348	69,431	35,079
Cash and cash equivalents at end of period	51,770				38,348				51,770	38,348	69,431
Parent Company [Member]
Operating activities
Net income									44,666	11,013	22,711
Adjustments to Reconcile Net Income (Loss) to Cash Provided by (Used in) Operating Activities [Abstract]
Equity in earnings of subsidiaries									(48,896)	(13,019)	(22,711)
Deferred income taxes									(1,415)	(552)
Share-based compensation									4,142	2,012
Change in
Income taxes receivable									68	(57)
Other assets									184	(717)
Other liabilities, affiliate									2,216	(8,328)
Net cash provided by (used in) operating activities									965	(9,648)
Investing activities
Capital contribution to subsidiary										(87,000)
Net cash provided by (used in) investing activities										(87,000)
Financing activities
Distributions received									3,500	16,239	15,295
Dividends paid									(3,540)	(16,683)	$ (15,295)
Proceeds from issuances of common stock										289,322
Costs directly attributable to issuance of common stock										(1,578)
Repurchase of common stock										(190,595)
Net cash provided by (used in) financing activities									(40)	96,705
Net change in cash and cash equivalents									925	57
Cash and cash equivalents at beginning of period				$ 57					57
Cash and cash equivalents at end of period	$ 982				$ 57				$ 982	$ 57

Supplementary Insurance Infor85

Supplementary Insurance Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Supplementary Insurance Information, by Segment [Line Items]
DAC	$ 1,075	$ 1,036	$ 1,095
Loss and LAE Reserves	1,364,774	1,209,905	1,016,641
UPR	585,448	480,124	386,279
Earned Premium	118,068	96,650	84,378
Net Investment Income	7,948	4,841	4,901
Loss and LAE Incurred	55,753	40,821	32,090
DAC Amortization	5,320	4,966	4,899
General and Administrative Expenses	62,978	76,805	63,620
Net Written Premium	120,508	99,074	86,773
Program segment
Supplementary Insurance Information, by Segment [Line Items]
DAC			1
Loss and LAE Reserves	1,354,211	1,201,279	1,009,068
UPR	554,425	451,993	357,681
Earned Premium Charge	(1)	(4)	(501)
Loss and LAE Incurred	1,987	217	465
DAC Amortization			163
General and Administrative Expenses	12,446	10,855	11,010
New Written Premium Charge	(3)	(5)	(1,018)
Lender segment
Supplementary Insurance Information, by Segment [Line Items]
DAC	1,075	1,036	1,094
Loss and LAE Reserves	10,563	8,626	7,573
UPR	31,023	28,131	28,598
Earned Premium	118,069	96,654	84,879
Loss and LAE Incurred	53,766	40,604	31,625
DAC Amortization	5,320	4,966	4,736
General and Administrative Expenses	39,837	38,995	36,020
Net Written Premium	120,511	99,079	87,791
Corporate
Supplementary Insurance Information, by Segment [Line Items]
Net Investment Income	7,948	4,841	4,901
General and Administrative Expenses	$ 10,695	$ 26,955	$ 16,590

Supplementary Schedule of All86

Supplementary Schedule of Allowance For Policy Cancellations (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Allowance for policy cancellations.
Beginning balance	$ 55,500	$ 39,623	$ 32,775
Additions	253,879	209,335	165,030
Deductions	(250,412)	(197,678)	(160,940)
Prior year development	643	4,220	2,758
Ending balance	59,610	55,500	39,623
Net negative impact to the balance sheet	$ 200	$ 2,200	$ 1,600