State National Companies 10-Q 9 May 16 2016 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2016	May. 09, 2016
Document and Entity Information
Entity Registrant Name	State National Companies, Inc.
Entity Central Index Key	1,610,793
Document Type	10-Q
Document Period End Date	Mar. 31, 2016
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		42,704,712
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q1

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Investments:
Fixed-maturity securities – available-for-sale, at fair value (amortized cost – $335,664, $327,764, respectively)	$ 341,452	$ 329,522
Equity securities – available-for-sale, at fair value (cost – $4,001, $4,796, respectively)	4,670	5,544
Total investments	346,122	335,066
Cash and cash equivalents	38,244	51,770
Restricted cash and investments	3,716	3,717
Accounts receivable from agents, net	31,323	23,913
Reinsurance recoverable on paid losses	1,267	1,187
Deferred acquisition costs	872	1,075
Reinsurance recoverables	1,962,189	1,911,660
Property and equipment, net (includes land held for sale -$1,034, $1,034, respectively)	16,798	17,163
Interest receivable	2,040	2,158
Income taxes receivable	1,671	3,330
Deferred income taxes, net	23,499	26,208
Goodwill and intangible assets, net	5,778	5,958
Other assets	5,490	4,353
Total assets	2,439,009	2,387,558
Liabilities
Unpaid losses and loss adjustment expenses	1,412,128	1,364,774
Unearned premiums	583,843	585,448
Allowance for policy cancellations	54,317	59,610
Deferred ceding fees	29,877	29,119
Accounts payable to agents	2,104	2,458
Accounts payable to insurance companies	9,812	3,801
Debt, net	43,751	43,740
Other liabilities	30,198	35,151
Total liabilities	2,166,030	2,124,101
Shareholders' equity
Common stock, $.001 par value (150,000,000 shares authorized; 42,704,712 and 42,699,550 shares issued at March 31, 2016 and December 31, 2015, respectively)	$ 43	$ 43
Preferred stock, $.001 par value (10,000,000 shares authorized; no shares issued and outstanding at March 31, 2016 and December 31, 2015)
Additional paid-in capital	$ 225,671	$ 224,719
Retained earnings	42,823	37,322
Accumulated other comprehensive income	4,442	1,373
Total shareholders' equity	272,979	263,457
Total liabilities and shareholders' equity	$ 2,439,009	$ 2,387,558

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Condensed Consolidated Balance Sheets
Fixed-maturity securities - available-for-sale, amortized cost	$ 335,664	$ 327,764
Equity securities - available-for-sale, cost	4,001	4,796
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	42,704,712	42,699,550
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

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Revenues:
Premiums earned	$ 31,677	$ 29,284
Commission income	321	370
Ceding fees	16,244	14,144
Net investment income	2,040	1,681
Realized net investment gains (losses)	(638)	265
Other income	456	385
Total revenues	50,100	46,129
Expenses:
Losses and loss adjustment expenses	15,089	13,533
Commissions	1,697	1,497
Taxes, licenses, and fees	702	712
General and administrative	16,994	16,142
Interest expense	537	500
Total expenses	35,019	32,384
Income (loss) before income taxes	15,081	13,745
Income taxes:
Current tax expense (benefit)	4,354	5,244
Deferred tax expense (benefit)	1,057	(173)
Total income tax expense (benefit)	5,411	5,071
Net income (loss)	$ 9,670	$ 8,674
Net income (loss) per share attributable to common shareholders:
Basic earnings per share (in dollars per share)	$ 0.23	$ 0.20
Diluted earnings per share (in dollars per share)	0.23	0.20
Dividends, per share	$ 0.06	$ 0.01

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Condensed Consolidated Statements of Comprehensive Income
Net income (loss)	$ 9,670	$ 8,674
Unrealized gains (losses) on securities:
Unrealized holding gains (losses) during the period	4,572	2,946
Tax effect on unrealized holding gains (losses) during the period	(1,600)	(1,031)
Less: reclassification adjustments for realized gains included in net income	149	(88)
Tax effect on reclassification adjustments for realized gains included in net income	(52)	31
Other comprehensive income (loss)	3,069	1,858
Total comprehensive income (loss)	$ 12,739	$ 10,532

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands	Common stock	Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive Income (Loss)	Total
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 (loss)			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
Increase (decrease) in shareholder's equity
Stock-based compensation expense		952			952
Dividends declared			(2,549)		(2,549)
Repurchase of common stock			(1,620)		(1,620)
Net income (loss)			9,670		9,670
Other comprehensive income (loss), net of tax				3,069	3,069
Balance at Mar. 31, 2016	$ 43	$ 225,671	$ 42,823	$ 4,442	$ 272,979

Condensed Consolidated Stateme7

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Operating activities
Net cash provided by (used in) operating activities	$ (1,600)	$ (437)
Investing activities
Purchase of investments	(27,558)	(20,596)
Proceeds from sale of investments	14,117	6,938
Proceeds from maturities and principal receipts	6,079	7,034
Proceeds from dispositions of property and equipment	20	55
Purchase of property and equipment	(111)	(103)
Net cash provided by (used in) investing activities	(7,453)	(6,672)
Financing activities
Dividends paid	(11)
Repurchase of common stock	(4,462)
Net cash provided by (used in) financing activities	(4,473)
Net change in cash and cash equivalents	(13,526)	(7,109)
Cash and cash equivalents at beginning of period	51,770	38,348
Cash and cash equivalents at end of period	$ 38,244	$ 31,239

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2016
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. Basis of Presentation The unaudited condensed consolidated financial statements included herein have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and include the accounts of the Company and all subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. Certain footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial reporting. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements for the years ended December 31, 2015 and 2014. The interim financial data as of March 31, 2016 and 2015 is unaudited. However, in the opinion of the Company’s management (“Management”), the interim data includes all adjustments, consisting of normal recurring adjustments, necessary to fairly state the results for the interim period. The results of operations for the period ended March 31, 2016 and 2015 are not necessarily indicative of the operating results to be expected for the full year. Refer to “Summary of Significant Accounting Policies” in the consolidated financial statements for the years ended December 31, 2015, 2014 and 2013 for information on accounting policies that we consider critical in preparing consolidated financial statements. Estimates The preparation of financial statements in conformity with GAAP requires 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. 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). Income Taxes 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 March 31, 2016 and December 31, 2015. 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 restricted stock grants and stock option awards that contain a service condition are recognized on a straight line pro rata basis over the vesting period. For restricted stock awards that contain a performance condition, the expense is recognized based on the awards expected to vest and the cumulative expense is adjusted whenever the estimate of the number of awards to vest changes. See Note 7 — “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 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. The Company adopted ASU 2015-03 for the current reporting period. 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 January 2016, the FASB issued an accounting standards update (ASU 2016-01), “Recognition and Measurement of Financial Assets and Financial Liabilities” (Sub-Topic 825-10). The amendments in this update supersede the guidance to classify equity securities with readily determinable fair values into different categories (that is, trading or available-for-sale) and require equity securities to be measured at fair value with changes in the fair value recognized through net income. The amendments are expected to improve financial reporting by providing relevant information about an entity’s equity investments and reducing the number of items that are recognized in other comprehensive income. This ASU is effective for annual and interim periods beginning after December 15, 2017. The Company is currently evaluating what impact this ASU will have on financial results and disclosures. In February 2016, the FASB issued an accounting standards update (ASU 2016-02), “Leases” (Topic 842) that requires lessees to put most leases on their balance sheets but recognize expenses on their income statements. The FASB is issuing this update to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. This ASU is effective for annual and interim periods beginning after December 15, 2018. Early adoption is permitted. The Company does not plan to early adopt and is currently evaluating what impact this ASU will have on financial results and disclosures. In March 2016, the FASB issued an accounting standards update (ASU 2016-08), “Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net).” The new standard requires an entity to determine whether it is a principal or an agent in a transaction in which another party is involved in providing goods or services to a customer by evaluating the nature of its promise to the customer. An entity is a principal and therefore records revenue on a gross basis if it controls the promised good or service before transferring the good or service to the customer. An entity is an agent and records as revenue the net amount it retains for its agency services if its role is to arrange for another entity to provide the goods or services. The amendments clarify how an entity should identify the unit of accounting for the principal versus agent evaluation, and how it should apply the control principle to certain types of arrangements, such as service transactions, by explaining what a principal controls before the specified good or service is transferred to the customer. This ASU’s effective date and transition requirements are the same as those of the new revenue recognition standard which is effective for annual reporting periods beginning after December 15, 2017, including interim reporting periods within that period . T he Company is currently evaluating what impact, if any, this ASU will have on financial results and disclosures. In March 2016, the FASB issued an accounting standards update, “Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting.” Under the new guidance, companies will no longer record excess tax benefits and certain tax deficiencies in additional paid-in capital (APIC). Instead, companies will record all excess tax benefits and tax deficiencies as income tax expense or benefit in the income statement, and APIC pools will be eliminated. For interim reporting purposes, companies will account for excess tax benefits and tax deficiencies as discrete items in the period in which they occur. In addition, the guidance eliminates the requirement that excess tax benefits be realized before companies can recognize them. The guidance requires companies to present excess tax benefits as an operating activity on the statement of cash flows rather than as a financing activity. This ASU is effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Early adoption is permitted. The Company prospectively adopted the provisions of this ASU for the current reporting period and the impact was immaterial to financial results. There would have been no impact to prior periods. Reclassifications The Company adopted ASU 2015-03, “Interest – Imputation of Interest” for the current reporting period. Presentation of “Other Assets” and “Debt, net” on the prior year balance sheet have been retrospectively adjusted to reflect the adoption of this ASU. The 2015 presentation of each line was adjusted by $760 thousand to reflect the netting of unamortized debt issuance costs.

Investments

Investments	3 Months Ended
	Mar. 31, 2016
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 March 31, 2016 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, 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 $ $ $ $ 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 March 31, 2016 Fair Unrealized Fair Unrealized Fair Unrealized ($ in thousands) Value Losses Value Losses Value Losses Fixed-maturity securities Government $ $ $ — $ — $ $ 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 — — Total equity securities — — $ $ $ $ $ $ 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 — — $ $ $ $ $ $ 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 regular review of the Company’s 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” in the consolidated financial statements for the years ended December 31, 2015, 2014 and 2013. Management believes that the temporary impairments are primarily the result of widening credit spreads resulting from a decline in commodity prices. Management believes that despite the wider credit spreads, the securities are only temporarily impaired due to the strength of the issuing companies’ balance sheets, as well as their available liquidity options allowing them to manage through this period of lower commodity prices. There were 125 securities in an unrealized loss position at March 31, 2016. Over 74% of these investments were investment-grade at March 31, 2016. We do not intend to sell or believe we will be required to sell any of our temporarily-impaired fixed maturities before recovery of their amortized cost basis. 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 March 31, 2016. Proceeds from sales of investments in fixed-maturity, equity and short-term securities for the three months ended March 31, 2016 and 2015 were $14.1 million and $6.9 million, respectively. The following table presents the Company’s gross realized gains (losses) for the periods ended March 31: Three Months Ended March 31, March 31, ($ in thousands) 2016 2015 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) $ $ T he Company had no non-cash exchanges of investment securities for the three months ended March 31, 2016 and three non-cash exchanges for the three months ended March 31, 2015. Non-cash consideration received and gains for these exchanges was $1 .0 million and $40 thousand for the three months ended March 31, 2015. Gains are reflected in “Realized net investment gains” in the condensed consolidated statements of income. The following schedule details the maturities of the Company’s fixed-maturity securities, available-for-sale, as of March 31, 2016: Fair ($ 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 $0.9 million of mortgage-backed securities collateralized by subprime residential loans, which represent approximately 0.27% of the Company’s total investments as of March 31, 2016. The Company does not own mortgage derivatives. Net investment income for the periods ended March 31, consists of the following: Three Months Ended March 31, March 31, ($ in thousands) 2016 2015 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 consisted of fixed-maturity securities at fair values totaling $71.3 million and $53.5 million at March 31, 2016 and December 31, 2015, 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 condensed 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 condensed consolidated statements of comprehensive income. Net losses recognized in the condensed consolidated statements of income related to embedded derivatives was $0.7 million for the three month period ended March 31, 2016.

Income Tax Provision

Income Tax Provision	3 Months Ended
	Mar. 31, 2016
Income Taxes
Income Tax Provision	3. Income Tax Provision The Company computes its provision for income taxes in interim periods by applying its estimated annual effective tax rate against income (loss) before income taxes for the period. In addition, non-recurring or discrete items are recorded during the period in which they occur. The magnitude of the impact that discrete items have on the Company’s quarterly effective tax rate is dependent on the level of income in the period. A reconciliation of federal income tax expense computed by applying the federal statutory tax rate to income (loss) before income taxes for the three month periods ended March 31 is as follows: 2016 2015 Effective Effective ($ in thousands) Amount Tax Rate Amount Tax Rate Expected tax expense (benefit) $ % $ % Tax-exempt income State income taxes Other Total income tax expense (benefit) $ % $ %

Reinsurance

Reinsurance	3 Months Ended
	Mar. 31, 2016
Reinsurance
Reinsurance	4. Reinsurance Through unaffiliated general agents, SNIC, NSIC, and USIC write property and casualty lines of business in the Program Services segment. 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 producers and, accordingly, the related ceding fees receivable are reflected as accounts receivable from agents. If the producer defaults on its obligation to pay these fees (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. SNIC, NSIC, and USIC remain liable for unearned premiums and unpaid losses and loss adjustment expenses 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, security funds available, and other factors as appropriate. Following is a summary of these balances: March 31, December 31, ($ in thousands) 2016 2015 Ceded unearned premiums $ $ Ceded loss and loss adjustment expense reserves Total reinsurance recoverables Secured reinsurance recoverables Unsecured reinsurance recoverables $ $ The fair value of all collateral held by SNIC, NSIC and USIC for reinsurers for whom we require collateral is approximately 142% of the related reinsurance recoverables as of March 31, 2016, with the lowest ratio for any reinsurer being 105% .

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Mar. 31, 2016
Fair Value Measurements
Fair Value Measurements	5. Fair Value Measurements Assets and liabilities reported in the condensed 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: March 31, 2016 ($ 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, 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 $ — $ $ — $ The fair value of embedded derivatives included in Level 2 securities was $8.1 million and $8.6 million at March 31, 2016 and December 31, 2015, respectively. There was no Level 3 activity including gains or losses recognized, purchases, or sales transaction during the periods ending March 31, 2016 and December 31, 2015. 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 March 31, 2016 and December 31, 2015.

401(k) Profit-Sharing Plan and

401(k) Profit-Sharing Plan and Trust	3 Months Ended
	Mar. 31, 2016
401(k) Profit-Sharing Plan and Trust
401(k) Profit-Sharing Plan and Trust	6 . 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. The Company is required to make a matching contribution of 100% of the first 1% and 50% of the next 5% of employees’ contributions. 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 for the three months ended March 31, 2016 and 2015 was $409 thousand and $347 thousand, respectively.

Stock-based Payments

Stock-based Payments	3 Months Ended
	Mar. 31, 2016
Stock-based Payments
Stock-based Payments	7. 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 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. The fair value of the restricted shares granted is determined based on the most recent trading price of the stock as of the grant date. The fair value of each stock option grant is established on the grant date using the Black-Scholes option pricing model. There were no options granted during the three month period ended March 31, 2015. The Company granted 500,000 options during the three month period ended March 31, 2016 with the following weighted-average assumptions. The expected volatility is 26.53% , 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 1.25% , 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 is 2.44% and no forfeitures are expected. Compensation expense for all share-based compensation was $952 thousand and $766 thousand for the three months ended March 31, 2016 and 2015 respectively. A summary of the Company’s restricted shares and stock options activity for the three months ended March 31, 2016 and 2015 is shown below: Weighted-Average Weighted-Average Restricted Grant Date Fair Value Stock Grant Date Fair Value March 31, 2016 Shares per Restricted Share Options per Stock Option Nonvested at beginning of period $ $ Granted Forfeited — — — — Vested — — — — Nonvested at end of period Weighted-Average Weighted-Average Restricted Grant Date Fair Value Stock Grant Date Fair Value March 31, 2015 Shares per Restricted Share Options per Stock Option Nonvested at beginning of period $ $ Granted — — Forfeited — — — — Vested — — — — Nonvested at end of period

Concentration of Risk

Concentration of Risk	3 Months Ended
	Mar. 31, 2016
Concentration of Risk
Concentration of Risk	8 . 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 56% and 53% of gross premiums written for the periods ending March 31, 2016 and 2015, respectively. The four largest reinsurers with unsecured reinsurance recoverables, all of which are rated A or higher by A.M. Best, accounted for approximately 14% , 12% , 11% , and 6% of the Company’s unsecured reinsurance recoverables at March 31, 2016.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2016
Commitments and Contingencies
Commitments and Contingencies	9 . 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. The Company has 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 business at a specified price in the event of termination of the Alliance.

Earnings Per Share

Earnings Per Share	3 Months Ended
	Mar. 31, 2016
Earnings Per Share
Earnings Per Share	10. Earnings Per Share A reconciliation of the numerators and denominators of the basic and diluted per share calculations is presented below: Three Months Ended March 31, March 31, ($ in thousands, except for per share amounts) 2016 2015 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

Segment Information

Segment Information	3 Months Ended
	Mar. 31, 2016
Segment Information
Segment Information	11. Segment Information The following is business segment information for the periods indicated: Three Months Ended March 31, March 31, ($ in thousands) 2016 2015 Revenues: Program $ $ Lender Corporate Consolidated revenues $ $ Income (loss) before income taxes: Program $ $ Lender Corporate Consolidated income (loss) before income taxes $ $ The following table summarizes the financial assets of the Company’s segments as of the periods indicated: March 31, December 31, ($ in thousands) 2016 2015 Assets: Program $ $ Lender Corporate $ $

Common Stock

Common Stock	3 Months Ended
	Mar. 31, 2016
Common Stock.
Common Stock	12. Common Stock 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 pursuant to Rule 10b5-1 under the Securities Exchange Act of 1934. During the three months ended March 31, 2016, the Company purchased 173,521 shares of its common stock at an aggregate purchase price including commissions of $1.6 million. The excess cost of the repurchased shares over par value was charged to retained earnings.

Debt

Debt	3 Months Ended
	Mar. 31, 2016
Debt
Debt	13. Debt The Company has three statutory business trusts (the “Trusts”) that were formed between 2002 and 2004, for the sole purpose of issuing $44.5 million of trust preferred securities in private offering transactions. The Trusts used the proceeds from these offerings, together with the equity proceeds received from the Company upon their initial formation to purchase variable-rate subordinated debentures issued by the Company. All voting securities of the Trusts are owned by the Company, and the debentures are the sole assets of the trusts. The Trusts meet the obligations of the trust preferred securities with the interest and principal paid on the debentures. The Company does not have a variable interest in the Trusts and therefore does not consolidate the Trusts. These debentures’ interest rates range from 3.80% to 4.10% plus the 3-month LIBOR . All of the debentures mature between 2032 and 2034 and are reflected net of debt issuance costs in the condensed consolidated balance sheets. On March 31, 2016, the Company, through its subsidiary T.B.A. Insurance Group, Ltd. (“TBA”), entered into a loan agreement (“credit agreement”), which provides for a secured revolving credit facility in an aggregate principal amount of $15 million. The credit agreement matures on April 30, 2018. Under the credit agreement, TBA may request advances up to the aggregate amount of the unused commitment under the credit facility, on a revolving basis, prior to the maturity of the credit agreement. Borrowings under the credit agreement will bear interest at a variable rate equal to LIBOR plus 1.85% per annum; provided, however, that LIBOR shall be subject to a floor of 0.15% . TBA shall also pay a commitment fee on the daily average unused commitment amount for the period running from the closing date to the maturity date at a rate of 0.25% per annum. The credit agreement contains customary representations, warranties, covenants, and events of default, as well as a financial covenant requiring TBA and the Company to maintain a consolidated tangible net worth of at least $150 million. TBA’s obligations under the credit agreement are guaranteed by the Company and are secured by a securities account in the name of TBA and maintained with the creditor, in which TBA must maintain assets with a market value of at least $25 million.

Summary of Significant Accoun21

Summary of Significant Accounting Policies (Policy )	3 Months Ended
	Mar. 31, 2016
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.
Basis of Presentation	Basis of Presentation The unaudited condensed consolidated financial statements included herein have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and include the accounts of the Company and all subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. Certain footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial reporting. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements for the years ended December 31, 2015 and 2014. The interim financial data as of March 31, 2016 and 2015 is unaudited. However, in the opinion of the Company’s management (“Management”), the interim data includes all adjustments, consisting of normal recurring adjustments, necessary to fairly state the results for the interim period. The results of operations for the period ended March 31, 2016 and 2015 are not necessarily indicative of the operating results to be expected for the full year. Refer to “Summary of Significant Accounting Policies” in the consolidated financial statements for the years ended December 31, 2015, 2014 and 2013 for information on accounting policies that we consider critical in preparing consolidated financial statements.
Estimates	Estimates The preparation of financial statements in conformity with GAAP requires 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.
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).
Income Taxes	Income Taxes 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 March 31, 2016 and December 31, 2015.
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 restricted stock grants and stock option awards that contain a service condition are recognized on a straight line pro rata basis over the vesting period. For restricted stock awards that contain a performance condition, the expense is recognized based on the awards expected to vest and the cumulative expense is adjusted whenever the estimate of the number of awards to vest changes. See Note 7 — “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 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. The Company adopted ASU 2015-03 for the current reporting period. 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 January 2016, the FASB issued an accounting standards update (ASU 2016-01), “Recognition and Measurement of Financial Assets and Financial Liabilities” (Sub-Topic 825-10). The amendments in this update supersede the guidance to classify equity securities with readily determinable fair values into different categories (that is, trading or available-for-sale) and require equity securities to be measured at fair value with changes in the fair value recognized through net income. The amendments are expected to improve financial reporting by providing relevant information about an entity’s equity investments and reducing the number of items that are recognized in other comprehensive income. This ASU is effective for annual and interim periods beginning after December 15, 2017. The Company is currently evaluating what impact this ASU will have on financial results and disclosures. In February 2016, the FASB issued an accounting standards update (ASU 2016-02), “Leases” (Topic 842) that requires lessees to put most leases on their balance sheets but recognize expenses on their income statements. The FASB is issuing this update to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. This ASU is effective for annual and interim periods beginning after December 15, 2018. Early adoption is permitted. The Company does not plan to early adopt and is currently evaluating what impact this ASU will have on financial results and disclosures. In March 2016, the FASB issued an accounting standards update (ASU 2016-08), “Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net).” The new standard requires an entity to determine whether it is a principal or an agent in a transaction in which another party is involved in providing goods or services to a customer by evaluating the nature of its promise to the customer. An entity is a principal and therefore records revenue on a gross basis if it controls the promised good or service before transferring the good or service to the customer. An entity is an agent and records as revenue the net amount it retains for its agency services if its role is to arrange for another entity to provide the goods or services. The amendments clarify how an entity should identify the unit of accounting for the principal versus agent evaluation, and how it should apply the control principle to certain types of arrangements, such as service transactions, by explaining what a principal controls before the specified good or service is transferred to the customer. This ASU’s effective date and transition requirements are the same as those of the new revenue recognition standard which is effective for annual reporting periods beginning after December 15, 2017, including interim reporting periods within that period . T he Company is currently evaluating what impact, if any, this ASU will have on financial results and disclosures. In March 2016, the FASB issued an accounting standards update, “Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting.” Under the new guidance, companies will no longer record excess tax benefits and certain tax deficiencies in additional paid-in capital (APIC). Instead, companies will record all excess tax benefits and tax deficiencies as income tax expense or benefit in the income statement, and APIC pools will be eliminated. For interim reporting purposes, companies will account for excess tax benefits and tax deficiencies as discrete items in the period in which they occur. In addition, the guidance eliminates the requirement that excess tax benefits be realized before companies can recognize them. The guidance requires companies to present excess tax benefits as an operating activity on the statement of cash flows rather than as a financing activity. This ASU is effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Early adoption is permitted. The Company prospectively adopted the provisions of this ASU for the current reporting period and the impact was immaterial to financial results. There would have been no impact to prior periods.
Reclassification	Reclassifications The Company adopted ASU 2015-03, “Interest – Imputation of Interest” for the current reporting period. Presentation of “Other Assets” and “Debt, net” on the prior year balance sheet have been retrospectively adjusted to reflect the adoption of this ASU. The 2015 presentation of each line was adjusted by $760 thousand to reflect the netting of unamortized debt issuance costs.

Investments (Tables)

Investments (Tables)	3 Months Ended
	Mar. 31, 2016
Investments
Summary of amortized cost, gross unrealized gains and losses, and the fair value of investment securities by class	Cost or Gross Gross March 31, 2016 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, 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 $ $ $ $
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 March 31, 2016 Fair Unrealized Fair Unrealized Fair Unrealized ($ in thousands) Value Losses Value Losses Value Losses Fixed-maturity securities Government $ $ $ — $ — $ $ 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 — — Total equity securities — — $ $ $ $ $ $ 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 — — $ $ $ $ $ $
Schedule of gross realized gains (losses)	Three Months Ended March 31, March 31, ($ in thousands) 2016 2015 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	Three Months Ended March 31, March 31, ($ in thousands) 2016 2015 Interest on investments $ $ Dividends Gross investment income Investment expenses Net investment income $ $

Income Tax Provision (Tables)

Income Tax Provision (Tables)	3 Months Ended
	Mar. 31, 2016
Income Taxes
Schedule of reconciliation of federal income tax expense computed by applying the federal statutory tax rate to income (loss) before federal income tax	2016 2015 Effective Effective ($ in thousands) Amount Tax Rate Amount Tax Rate Expected tax expense (benefit) $ % $ % Tax-exempt income State income taxes Other Total income tax expense (benefit) $ % $ %

Reinsurance (Tables)

Reinsurance (Tables)	3 Months Ended
	Mar. 31, 2016
Reinsurance
Summary of balances	March 31, December 31, ($ in thousands) 2016 2015 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)	3 Months Ended
	Mar. 31, 2016
Fair Value Measurements
Schedule of investments measured at fair value on recurring basis	March 31, 2016 ($ 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, 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 $ — $ $ — $ The fair value of embedded derivatives included in Level 2 securities was $8.1 million and $8.6 million at March 31, 2016 and December 31, 2015, respectively.

Stock-based Payments (Tables)

Stock-based Payments (Tables)	3 Months Ended
	Mar. 31, 2016
Stock-based Payments
Schedule of nonvested stock activity	Weighted-Average Weighted-Average Restricted Grant Date Fair Value Stock Grant Date Fair Value March 31, 2016 Shares per Restricted Share Options per Stock Option Nonvested at beginning of period $ $ Granted Forfeited — — — — Vested — — — — Nonvested at end of period Weighted-Average Weighted-Average Restricted Grant Date Fair Value Stock Grant Date Fair Value March 31, 2015 Shares per Restricted Share Options per Stock Option Nonvested at beginning of period $ $ Granted — — Forfeited — — — — Vested — — — — Nonvested at end of period

Earnings Per Share (Tables)

Earnings Per Share (Tables)	3 Months Ended
	Mar. 31, 2016
Earnings Per Share
Schedule of reconciliation of the numerators and denominators of the basic and diluted per share calculations	Three Months Ended March 31, March 31, ($ in thousands, except for per share amounts) 2016 2015 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

Segment Information (Tables)

Segment Information (Tables)	3 Months Ended
	Mar. 31, 2016
Segment Information
Schedule of business segment information	Three Months Ended March 31, March 31, ($ in thousands) 2016 2015 Revenues: Program $ $ Lender Corporate Consolidated revenues $ $ Income (loss) before income taxes: Program $ $ Lender Corporate Consolidated income (loss) before income taxes $ $
Schedule of the financial assets of the Entity's segments	March 31, December 31, ($ in thousands) 2016 2015 Assets: Program $ $ Lender Corporate $ $

Summary of Significant Accoun29

Summary of Significant Accounting Policies (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2016USD ($)item	Mar. 31, 2015USD ($)	Dec. 31, 2015USD ($)
Income Taxes
Uncertain tax positions	$ 0		$ 0
Income tax expense (benefit)	5,411	$ 5,071
New Accounting Pronouncements and Changes in Accounting Principles
Adjustment to other assets and debt to reflect the netting of unamortized debt issuance costs	$ 760
Number of major segments | item	2

Investments - Amortized Cost, G

Investments - Amortized Cost, Gross Unrealized Gains and Losses, and Fair Value (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Investments
Cost or Amortized Cos	$ 339,665	$ 332,560
Gross Unrealized Gains	9,487	6,322
Gross Unrealized Losses	(3,030)	(3,816)
Total investments	346,122	335,066
Fixed-maturity securities
Investments
Cost or Amortized Cos	335,664	327,764
Gross Unrealized Gains	8,766	5,486
Gross Unrealized Losses	(2,978)	(3,728)
Total investments	341,452	329,522
Government
Investments
Cost or Amortized Cos	21,623	18,890
Gross Unrealized Gains	527	124
Gross Unrealized Losses	(1)	(35)
Total investments	22,149	18,979
Government agency
Investments
Cost or Amortized Cos	1,914	2,025
Gross Unrealized Gains	45	31
Gross Unrealized Losses		(7)
Total investments	1,959	2,049
State and municipality
Investments
Cost or Amortized Cos	60,308	68,461
Gross Unrealized Gains	2,366	1,895
Gross Unrealized Losses	(14)	(14)
Total investments	62,660	70,342
Industrial and miscellaneous
Investments
Cost or Amortized Cos	142,985	132,797
Gross Unrealized Gains	3,336	2,139
Gross Unrealized Losses	(2,450)	(2,618)
Total investments	143,871	132,318
Residential mortgage-backed
Investments
Cost or Amortized Cos	82,661	80,566
Gross Unrealized Gains	1,929	1,213
Gross Unrealized Losses	(294)	(793)
Total investments	84,296	80,986
Commercial mortgage-backed
Investments
Cost or Amortized Cos	23,383	22,235
Gross Unrealized Gains	536	68
Gross Unrealized Losses	(5)	(150)
Total investments	23,914	22,153
Redeemable preferred stock
Investments
Cost or Amortized Cos	2,790	2,790
Gross Unrealized Gains	27	16
Gross Unrealized Losses	(214)	(111)
Total investments	2,603	2,695
Equity securities
Investments
Cost or Amortized Cos	4,001	4,796
Gross Unrealized Gains	721	836
Gross Unrealized Losses	(52)	(88)
Total investments	4,670	5,544
Non-redeemable preferred stock
Investments
Cost or Amortized Cos	3,989	4,012
Gross Unrealized Gains	356	422
Gross Unrealized Losses	(52)	(69)
Total investments	4,293	4,365
Common stock
Investments
Cost or Amortized Cos	12	784
Gross Unrealized Gains	365	414
Gross Unrealized Losses		(19)
Total investments	$ 377	$ 1,179

Investments - Gross Unrealized

Investments - Gross Unrealized Losses, Fair Value and Length of Time Securities in Continuous Unrealized Loss Position (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2016USD ($)item	Mar. 31, 2015USD ($)	Dec. 31, 2015USD ($)
Fair Value
Less Than 12 Months	$ 43,313		$ 126,856
12 Months or More	22,045		18,031
Total	65,358		144,887
Unrealized Losses
Less Than 12 Months	(2,244)		(2,714)
12 Months or More	(786)		(1,102)
Total	$ (3,030)		(3,816)
Number of securities in unrealized loss position | item	125
Proceeds from sales of investments in fixed-maturity, equity and short-term securities	$ 14,100	$ 6,900
Fixed-maturity securities
Fair Value
Less Than 12 Months	41,230		124,036
12 Months or More	22,045		18,031
Total	63,275		142,067
Unrealized Losses
Less Than 12 Months	(2,192)		(2,626)
12 Months or More	(786)		(1,102)
Total	(2,978)		(3,728)
Government
Fair Value
Less Than 12 Months	2,849		2,757
12 Months or More			1,290
Total	2,849		4,047
Unrealized Losses
Less Than 12 Months	(1)		(23)
12 Months or More			(12)
Total	(1)		(35)
Government agency
Fair Value
Less Than 12 Months			665
Total			665
Unrealized Losses
Less Than 12 Months			(7)
Total			(7)
State and municipality
Fair Value
Less Than 12 Months			405
12 Months or More	367		369
Total	367		774
Unrealized Losses
Less Than 12 Months			(1)
12 Months or More	(14)		(13)
Total	(14)		(14)
Industrial and miscellaneous
Fair Value
Less Than 12 Months	35,651		74,782
12 Months or More	4,993		2,440
Total	40,644		77,222
Unrealized Losses
Less Than 12 Months	(2,051)		(2,139)
12 Months or More	(399)		(479)
Total	(2,450)		(2,618)
Residential mortgage-backed
Fair Value
Less Than 12 Months	839		31,090
12 Months or More	16,168		13,227
Total	17,007		44,317
Unrealized Losses
Less Than 12 Months	(5)		(258)
12 Months or More	(289)		(535)
Total	(294)		(793)
Commercial mortgage-backed
Fair Value
Less Than 12 Months	951		13,317
12 Months or More	248		413
Total	1,199		13,730
Unrealized Losses
Less Than 12 Months	(3)		(147)
12 Months or More	(2)		(3)
Total	(5)		(150)
Redeemable preferred stock
Fair Value
Less Than 12 Months	940		1,020
12 Months or More	269		292
Total	1,209		1,312
Unrealized Losses
Less Than 12 Months	(132)		(51)
12 Months or More	(82)		(60)
Total	(214)		(111)
Equity securities
Fair Value
Less Than 12 Months	2,083		2,820
Total	2,083		2,820
Unrealized Losses
Less Than 12 Months	(52)		(88)
Total	(52)		(88)
Non-redeemable preferred stock
Fair Value
Less Than 12 Months	2,083		2,067
Total	2,083		2,067
Unrealized Losses
Less Than 12 Months	(52)		(69)
Total	$ (52)		(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	74.00%

Investments - Gross Realized Ga

Investments - Gross Realized Gains (Losses) (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2016USD ($)	Mar. 31, 2015USD ($)item
Realized gains:
Fixed-maturity securities	$ 296	$ 346
Equity securities	57	16
Gross realized gains	353	362
Realized losses:
Fixed-maturity securities	(675)	(97)
Equity securities	(226)
Other-than-temporary impairment losses on fixed-maturity securities	(90)
Gross realized losses	(991)	(97)
Net realized investment gains (losses)	$ (638)	$ 265
Number of non-cash exchanges of an investment security | item		3
Non-cash consideration received for exchanges		$ 1,000
Gains recognized on exchanges		$ 40

Investments - Maturities of Fix

Investments - Maturities of Fixed-Maturity Securities (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
Amortized Cost
Due in one year or less	$ 9,963
Due after one year through five years	114,710
Due after five years through ten years	94,102
Due after ten years	10,845
Total amortized cost for fixed maturity securities	335,664	$ 327,764
Fair value
Due in one year or less	10,093
Due after one year through five years	115,849
Due after five years through ten years	96,733
Due after ten years	10,567
Total fixed maturity securities	341,452	$ 329,522
Mortgage-backed securities
Fair value
Mortgage-backed securities collateralized by subprime residential loans	$ 900
Percentage of total investments which are collateralized by subprime residential loans	0.27%
Residential mortgage-backed
Amortized Cost
Residential mortgage-backed securities and Commercial mortgage-backed securities	$ 82,661
Fair value
Residential mortgage-backed securities and Commercial mortgage-backed securities	84,296
Commercial mortgage-backed
Amortized Cost
Residential mortgage-backed securities and Commercial mortgage-backed securities	23,383
Fair value
Residential mortgage-backed securities and Commercial mortgage-backed securities	$ 23,914

Investments - Net Investment In

Investments - Net Investment Income (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Net investment income
Interest on investments	$ 2,149	$ 1,821
Dividends	116	29
Gross investment income	2,265	1,850
Investment expenses	(225)	(169)
Net investment income	2,040	$ 1,681
Fair value of fixed-maturity securities on deposit	71,300		$ 53,500
Gain (Loss) on Derivative Instruments
Net investment income
Net derivative loss related to embedded derivatives	$ 700

Income Tax Provision (Details)

Income Tax Provision (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Federal And State Income Tax Expense Benefit Abstract
Total income tax expense (benefit)	$ 5,411	$ 5,071
Federal graduated rates	35.00%	35.00%
Amount
Expected tax expense (benefit)	$ 5,278	$ 4,811
Tax-exempt income	(96)	(94)
State income taxes	268	392
Other	(39)	(38)
Total income tax expense (benefit)	$ 5,411	$ 5,071
Effective Tax Rate
Expected tax expense (benefit) (as a percent)	35.00%	35.00%
Tax-exempt income (as a percent)	(0.60%)	(0.70%)
State income taxes (as a percent)	1.80%	2.90%
Other (as a percent)	(0.30%)	(0.30%)
Total income tax expense (benefit) (as a percent)	35.90%	36.90%

Reinsurance (Details)

Reinsurance (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
Ceded unearned premiums	$ 562,678	$ 559,638
Ceded loss and loss adjustment expense reserves	1,399,511	1,352,022
Total reinsurance recoverables	1,962,189	1,911,660
Secured reinsurance recoverables	(1,499,098)	(1,527,335)
Unsecured reinsurance recoverables	$ 463,091	$ 384,325
Fair value of the collateral held by SNIC, NISC and USIC as a percentage of the secured reinsurance recoverables	142.00%
Minimum
Fair value of the collateral held by SNIC, NISC and USIC as a percentage of the secured reinsurance recoverables	105.00%

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
Fair Value Measurements
Fixed-maturity securities	$ 341,452	$ 329,522
Equity securities	4,670	5,544
Level 3 activity	0	0
Transfers between Level 1, Level 2, and Level 3	0	0
Level 2
Fair Value Measurements
Fair value of embedded derivatives	8,100	8,600
Recurring basis
Fair Value Measurements
Total	346,122	335,066
Recurring basis | Fixed-maturity securities
Fair Value Measurements
Fixed-maturity securities	341,452	329,522
Recurring basis | Government
Fair Value Measurements
Fixed-maturity securities	22,149	18,979
Recurring basis | Government agency
Fair Value Measurements
Fixed-maturity securities	1,959	2,049
Recurring basis | State and municipality
Fair Value Measurements
Fixed-maturity securities	62,660	70,342
Recurring basis | Industrial and miscellaneous
Fair Value Measurements
Fixed-maturity securities	143,871	132,318
Recurring basis | Residential mortgage-backed
Fair Value Measurements
Fixed-maturity securities	84,296	80,986
Recurring basis | Commercial mortgage-backed
Fair Value Measurements
Fixed-maturity securities	23,914	22,153
Recurring basis | Redeemable preferred stock
Fair Value Measurements
Fixed-maturity securities	2,603	2,695
Recurring basis | Equity securities
Fair Value Measurements
Equity securities	4,670	5,544
Recurring basis | Non-redeemable preferred stock
Fair Value Measurements
Equity securities	4,293	4,365
Recurring basis | Common stock
Fair Value Measurements
Equity securities	377	1,179
Recurring basis | Level 2
Fair Value Measurements
Total	346,122	335,066
Recurring basis | Level 2 | Fixed-maturity securities
Fair Value Measurements
Fixed-maturity securities	341,452	329,522
Recurring basis | Level 2 | Government
Fair Value Measurements
Fixed-maturity securities	22,149	18,979
Recurring basis | Level 2 | Government agency
Fair Value Measurements
Fixed-maturity securities	1,959	2,049
Recurring basis | Level 2 | State and municipality
Fair Value Measurements
Fixed-maturity securities	62,660	70,342
Recurring basis | Level 2 | Industrial and miscellaneous
Fair Value Measurements
Fixed-maturity securities	143,871	132,318
Recurring basis | Level 2 | Residential mortgage-backed
Fair Value Measurements
Fixed-maturity securities	84,296	80,986
Recurring basis | Level 2 | Commercial mortgage-backed
Fair Value Measurements
Fixed-maturity securities	23,914	22,153
Recurring basis | Level 2 | Redeemable preferred stock
Fair Value Measurements
Fixed-maturity securities	2,603	2,695
Recurring basis | Level 2 | Equity securities
Fair Value Measurements
Equity securities	4,670	5,544
Recurring basis | Level 2 | Non-redeemable preferred stock
Fair Value Measurements
Equity securities	4,293	4,365
Recurring basis | Level 2 | Common stock
Fair Value Measurements
Equity securities	$ 377	$ 1,179

401(k) Profit-Sharing Plan an38

401(k) Profit-Sharing Plan and Trust (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Minimum age of officers and employees covered under plan	18 years
Employer contribution expense	$ 409	$ 347
First One Percent Member
Contribution required to made by employer which match with employees contribution (as a percent)	100.00%
Next Five Percent Member
Contribution required to made by employer which match with employees contribution (as a percent)	50.00%

Stock-based Payments - Assumpti

Stock-based Payments - Assumptions (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	May. 29, 2014
Stock-based Payments
Granted (in shares)	500,000	0
Share-based Compensation	$ 952	$ 766
Long-Term Incentive Plan 2014 | Employee and non-employee director
Stock-based Payments
Shares issued			4,400,000
Non-qualified stock options | Long-Term Incentive Plan 2014 | Executive officers and certain employees
Average assumptions used to value stock-based payments
Volatility (as a percent)	26.53%
Expiration term	10 years
Expected term	5 years 6 months
Risk-free interest rate (as a percent)	1.25%
Dividend yield (as a percent)	2.44%
Forfeitures expected (in shares)	0

Stock-based Payments - Restrict

Stock-based Payments - Restricted Shares and Stock Options Activity (Details) - $ / shares	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Stock Options
Granted (in shares)	500,000	0
Restricted Shares
Restricted Shares
Nonvested (in shares)	144,362	12,000
Granted (in shares)	195,835	230,060
Nonvested (in shares)	340,197	242,060
Weighted-Average Grant Date Fair Value per Restricted Share
Nonvested (in dollars per share)	$ 10.05	$ 10
Granted (in dollars per share)	12.14	9.98
Nonvested (in dollars per share)	$ 11.25	$ 9.98
Stock Options
Stock Options
Nonvested (in shares)	1,855,918	2,783,873
Granted (in shares)	500,000
Nonvested (in shares)	2,355,918	2,783,873
Weighted-Average Grant Date Fair Value per Stock Option
Nonvested (in dollars per share)	$ 3.22	$ 3.22
Granted (in dollars per share)	1.91
Nonvested (in dollars per share)	$ 2.94	$ 3.22

Concentration of Risk (Details)

Concentration of Risk (Details) - item	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Gross premiums written | California Texas New York and Florida
Concentration of Risk
Concentration of risk (as a percent)	56.00%	53.00%
Reinsurer | Unsecured reinsurance recoverables
Concentration of Risk
Number of reinsurers	4
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)	12.00%
Reinsurer | Unsecured reinsurance recoverables | Three reinsurer
Concentration of Risk
Concentration of risk (as a percent)	11.00%
Reinsurer | Unsecured reinsurance recoverables | Four reinsurer
Concentration of Risk
Concentration of risk (as a percent)	6.00%

Earnings Per Share (Details)

Earnings Per Share (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Numerator for both basic and diluted earnings per share:
Net income (loss)	$ 9,670	$ 8,674	$ 44,666
Denominator for both basic and diluted earnings per share:
Weighted-average common shares outstanding (in shares)	42,343,357	44,235,102
Dilutive effect of outstanding securities (determined using the treasury stock method) (in shares)	53,356	12,000
Weighted-average common shares outstanding and potential common shares outstanding (in shares)	42,396,713	44,247,102

Segment Information - Revenues

Segment Information - Revenues and Income Loss Before Taxes (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2016USD ($)item	Mar. 31, 2015USD ($)
Business segment information
Number of Operating Segments | item	2
Revenues [Abstract]
Revenues	$ 50,100	$ 46,129
Income (loss) before income taxes:
Income (loss) before income taxes	15,081	13,745
Corporate
Revenues [Abstract]
Revenues	1,410	1,980
Income (loss) before income taxes:
Income (loss) before income taxes	(2,406)	(1,356)
Operating segment | Program segment
Revenues [Abstract]
Revenues	16,244	14,133
Income (loss) before income taxes:
Income (loss) before income taxes	12,618	10,581
Operating segment | Lender segment
Revenues [Abstract]
Revenues	32,446	30,016
Income (loss) before income taxes:
Income (loss) before income taxes	$ 4,869	$ 4,520

Segment Information - Assets (D

Segment Information - Assets (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Assets
Total assets	$ 2,439,009	$ 2,387,558
Program segment
Assets
Total assets	1,994,097	1,935,104
Lender segment
Assets
Total assets	14,471	15,834
Corporate
Assets
Total assets	$ 430,441	$ 436,620

Common Stock (Details)

Common Stock (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2016	Oct. 12, 2015
Common Stock.
Value of shares authorized for repurchase		$ 50
Share repurchase agreement
Shares repurchased	173,521
Aggregate cost including commissions	$ 1.6

Debt (Details)

Debt (Details) $ in Millions	Dec. 31, 2004USD ($)item	Mar. 31, 2016USD ($)
Credit Facility
Number of statutory business trusts | item	3
Trust Preferred Securities
Credit Facility
Proceeds from trust preferred securities	$ 44.5
Trust Preferred Securities | Subordinated debentures | London Interbank Offered Rate (LIBOR) [Member]
Credit Facility
Variable rate basis		3-month LIBOR
Trust Preferred Securities | Subordinated debentures | Minimum | London Interbank Offered Rate (LIBOR) [Member]
Credit Facility
Basis spread on variable rate (as a percent)		3.80%
Trust Preferred Securities | Subordinated debentures | Maximum | London Interbank Offered Rate (LIBOR) [Member]
Credit Facility
Basis spread on variable rate (as a percent)		4.10%
T.B.A. Insurance Group, Ltd Member | Revolving Credit Facility (“credit agreement”)
Credit Facility
Maximum borrowing capacity		$ 15
Unused capacity commitment fee percentage		0.25%
Minimum tangible net worth required by financial covenant		$ 150
Minimum asset market value required by financial convenant		$ 25
T.B.A. Insurance Group, Ltd Member | Revolving Credit Facility (“credit agreement”) | London Interbank Offered Rate (LIBOR) [Member]
Credit Facility
Variable rate basis		LIBOR
Variable rate basis floor		0.15%
Basis spread on variable rate (as a percent)		1.85%