Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2016 | Aug. 05, 2016 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | James River Group Holdings, Ltd. | |
Entity Central Index Key | 1,620,459 | |
Trading Symbol | jrvr | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 29,091,496 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2016 | |
Amendment Flag | false | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2,016 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Fixed maturity securities: | ||
Available-for-sale, at fair value (amortized cost: 2016 - $923,706; 2015 - $897,445) | $ 952,572 | $ 899,660 |
Trading, at fair value (amortized cost: 2016 - $5,053; 2015 - $5,053) | 5,064 | 5,046 |
Equity securities available-for-sale, at fair value (cost: 2016 - $84,005; 2015 - $69,830) | 92,692 | 74,111 |
Bank loan participations held-for-investment, at amortized cost, net of allowance | 205,957 | 191,700 |
Short-term investments | 14,906 | 19,270 |
Other invested assets | 48,032 | 54,504 |
Total invested assets | 1,319,223 | 1,244,291 |
Cash and cash equivalents | 80,654 | 106,406 |
Accrued investment income | 7,613 | 8,068 |
Premiums receivable and agents' balances, net | 219,186 | 176,685 |
Reinsurance recoverable on unpaid losses | 153,706 | 131,788 |
Reinsurance recoverable on paid losses | 5,973 | 11,298 |
Prepaid reinsurance premiums | 61,117 | 44,146 |
Deferred policy acquisition costs | 55,800 | 60,754 |
Intangible assets, net | 39,230 | 39,528 |
Goodwill | 181,831 | 181,831 |
Other assets | 65,528 | 50,702 |
Total assets | 2,189,861 | 2,055,497 |
Liabilities: | ||
Reserve for losses and loss adjustment expenses | 843,337 | 785,322 |
Unearned premiums | 322,323 | 301,104 |
Payables to reinsurers | 26,922 | 19,867 |
Senior debt | 88,300 | 88,300 |
Junior subordinated debt | 104,055 | 104,055 |
Accrued expenses | 28,812 | 29,476 |
Other liabilities | 46,214 | 46,335 |
Total liabilities | 1,459,963 | 1,374,459 |
Commitments and contingent liabilities | ||
Shareholders' equity: | ||
Common Shares - 2016 and 2015: $0.0002 par value; 200,000,000 shares authorized; 2016 and 2015: 29,091,496 and 28,941,547 shares issued and outstanding, respectively | 6 | 6 |
Preferred Shares - 2016 and 2015: $0.00125 par value; 20,000,000 convertible shares authorized; no shares issued and outstanding | ||
Additional paid-in capital | 635,557 | 630,820 |
Retained earnings | 62,737 | 47,026 |
Accumulated other comprehensive income | 31,598 | 3,186 |
Total shareholders' equity | 729,898 | 681,038 |
Total liabilities and shareholders' equity | $ 2,189,861 | $ 2,055,497 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Available-for-sale debt securities, amortized cost (in dollars) | $ 923,706 | $ 897,445 |
Trading securities, debt, amortized cost (in dollars) | 5,053 | 5,053 |
Available-for-sale equity securities, amortized cost (in dollars) | $ 84,005 | $ 69,830 |
Common stock, par value (in dollars per share) | $ 0.0002 | $ 0.0002 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 29,091,496 | 28,941,547 |
Common stock, shares outstanding | 29,091,496 | 28,941,547 |
Preferred stock par value (in dollars per share) | $ 0.00125 | $ 0.00125 |
Preferred stock, shares authorized | 20,000,000 | 20,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income and Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Revenues | ||||
Gross written premiums | $ 170,671 | $ 184,011 | $ 303,742 | $ 315,269 |
Ceded written premiums | (37,613) | (25,197) | (63,783) | (47,796) |
Net written premiums | 133,058 | 158,814 | 239,959 | 267,473 |
Change in net unearned premiums | (14,503) | (52,754) | (4,274) | (44,402) |
Net earned premiums | 118,555 | 106,060 | 235,685 | 223,071 |
Net investment income | 11,553 | 13,000 | 22,825 | 24,986 |
Net realized investment gains (losses) | 1,619 | 350 | 2,166 | (2,456) |
Other income | 2,784 | 817 | 5,164 | 1,093 |
Total revenues | 134,511 | 120,227 | 265,840 | 246,694 |
Expenses | ||||
Losses and loss adjustment expenses | 76,659 | 67,931 | 150,165 | 142,415 |
Other operating expenses | 39,974 | 36,580 | 81,153 | 76,377 |
Other expenses | 91 | 69 | 79 | 138 |
Interest expense | 2,041 | 1,744 | 4,215 | 3,448 |
Amortization of intangible assets | 149 | 149 | 298 | 298 |
Total expenses | 118,914 | 106,473 | 235,910 | 222,676 |
Income before taxes | 15,597 | 13,754 | 29,930 | 24,018 |
Income tax expense | 1,001 | 1,265 | 2,497 | 2,152 |
Net income | 14,596 | 12,489 | 27,433 | 21,866 |
Other comprehensive income: | ||||
Net unrealized gains (losses), net of taxes of $1,987 and $2,644 in 2016 and $(1,879) and $(1,144) in 2015 | 12,792 | (15,005) | 28,412 | (11,056) |
Total comprehensive income (loss) | $ 27,388 | $ (2,516) | $ 55,845 | $ 10,810 |
Per share data: | ||||
Basic earnings per share (in dollars per share) | $ 0.50 | $ 0.44 | $ 0.95 | $ 0.77 |
Diluted earnings per share (in dollars per share) | 0.49 | 0.43 | 0.92 | 0.75 |
Dividend declared per share (in dollars per share) | $ 0.20 | $ 0.16 | $ 0.40 | $ 0.32 |
Weighted-average common shares outstanding: | ||||
Basic (in shares) | 29,035,512 | 28,547,616 | 28,994,260 | 28,544,003 |
Diluted (in shares) | 29,825,914 | 29,214,859 | 29,784,083 | 29,156,604 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Income and Comprehensive Income (Unaudited) (Parentheticals) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Income Statement [Abstract] | ||||
Tax on net unrealized gains | $ 1,987 | $ (1,879) | $ 2,644 | $ (1,144) |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Common Shares | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income | Total |
Balances at Dec. 31, 2014 | $ 6 | $ 628,236 | $ 41,323 | $ 18,356 | $ 687,921 |
Balance (in shares) at Dec. 31, 2014 | 28,540,350 | ||||
Increase (Decrease) in Shareholders' Equity [Roll Forward] | |||||
Net income | 21,866 | 21,866 | |||
Other comprehensive income (loss) | (11,056) | (11,056) | |||
Dividends | (9,242) | (9,242) | |||
Exercise of stock options and related excess tax benefits | 842 | 842 | |||
Exercise of stock options and related excess tax benefits (in shares) | 41,250 | ||||
Compensation expense under stock incentive plans | 1,854 | 1,854 | |||
Balances at Jun. 30, 2015 | $ 6 | 630,932 | 53,947 | 7,300 | 692,185 |
Balance (in shares) at Jun. 30, 2015 | 28,581,600 | ||||
Balances at Dec. 31, 2015 | $ 6 | 630,820 | 47,026 | 3,186 | $ 681,038 |
Balance (in shares) at Dec. 31, 2015 | 28,941,547 | 28,941,547 | |||
Increase (Decrease) in Shareholders' Equity [Roll Forward] | |||||
Net income | 27,433 | $ 27,433 | |||
Other comprehensive income (loss) | 28,412 | 28,412 | |||
Dividends | (11,722) | (11,722) | |||
Exercise of stock options and related excess tax benefits | 2,050 | 2,050 | |||
Exercise of stock options and related excess tax benefits (in shares) | 149,949 | ||||
Compensation expense under stock incentive plans | 2,687 | 2,687 | |||
Balances at Jun. 30, 2016 | $ 6 | $ 635,557 | $ 62,737 | $ 31,598 | $ 729,898 |
Balance (in shares) at Jun. 30, 2016 | 29,091,496 | 29,091,496 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Operating activities | ||
Net cash provided by operating activities | $ 29,747 | $ 48,853 |
Securities available-for-sale: | ||
Purchases - fixed maturity securities | (157,918) | (151,661) |
Sales - fixed maturity securities | 68,049 | 27,586 |
Maturities and calls - fixed maturity securities | 52,728 | 58,068 |
Purchases - equity securities | (3,000) | (7,998) |
Bank loan participations: | ||
Purchases | (51,304) | (62,172) |
Sales | 5,360 | 56,293 |
Maturities | 33,304 | 26,207 |
Other invested assets: | ||
Purchases | (1,000) | (27,113) |
Return of capital | 985 | |
Maturities and repayments | 6,500 | 6,342 |
Short-term investments, net | 4,364 | 26,269 |
Securities receivable or payable, net | (1,598) | 921 |
Purchases of property and equipment | (1,858) | (423) |
Net cash used in investing activities | (45,388) | (47,681) |
Financing activities | ||
Dividends paid | (11,604) | (9,133) |
Issuances of common shares under equity incentive plans | 1,743 | 646 |
Common share repurchases | (716) | |
Excess tax benefits from equity incentive plan transactions | 1,023 | 196 |
Repayments of financing obligations net of proceeds | (557) | (323) |
Other financing | (109) | |
Net cash used in financing activities | (10,111) | (8,723) |
Change in cash and cash equivalents | (25,752) | (7,551) |
Cash and cash equivalents at beginning of period | 106,406 | 73,383 |
Cash and cash equivalents at end of period | 80,654 | 65,832 |
Supplemental information | ||
Interest paid | $ 3,973 | $ 3,631 |
Accounting Policies
Accounting Policies | 6 Months Ended |
Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
Accounting Policies | 1. Accounting Policies Organization James River Group Holdings, Ltd. (referred to as “JRG Holdings” or, with its subsidiaries, the “Company”) is an exempted holding company registered in Bermuda, organized for the purpose of acquiring and managing insurance and reinsurance entities. The Company owns six insurance companies based in the United States (“U.S.”) focused on specialty insurance niches and a Bermuda-based reinsurance company as described below: · James River Group Holdings UK Limited (“James River UK”) is an insurance holding company formed in 2015 in the United Kingdom (“U.K.”). The Company contributed James River Group, Inc. (“James River Group”), a U.S. insurance holding company, to James River UK in 2015. · James River Group, Inc. (“James River Group”) is a Delaware domiciled insurance holding company which owns all of the Company’s U.S.-based subsidiaries, either directly or indirectly through one of its wholly-owned U.S. subsidiaries. James River Group oversees the Company’s U.S. insurance operations and maintains all of the outstanding debt in the U.S. · James River Insurance Company (“James River Insurance”) is an Ohio domiciled excess and surplus lines insurance company that, with its wholly-owned insurance subsidiary, James River Casualty Company, a Virginia domiciled insurance company, is authorized to write business in every state, the District of Columbia, Puerto Rico and the U.S. Virgin Islands. · Falls Lake National Insurance Company (“Falls Lake National”) is an Ohio domiciled insurance company which wholly-owns Stonewood Insurance Company (“Stonewood Insurance”), a North Carolina domiciled company, Falls Lake General Insurance Company, an Ohio domiciled company, and Falls Lake Fire and Casualty Company, a California domiciled company. Falls Lake Fire and Casualty began operations in late June of 2016. · Stonewood Insurance is a workers’ compensation insurance company that writes insurance primarily for the residential construction and light manufacturing industries. Stonewood Insurance writes workers’ compensation coverage in North Carolina, Virginia, South Carolina, and Tennessee. · JRG Reinsurance Company, Ltd. (“JRG Re”) is a Bermuda domiciled reinsurer that provides reinsurance to U.S. third parties and to the Company’s U.S.-based insurance subsidiaries. Basis of Presentation The accompanying condensed consolidated financial statements and notes have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and do not contain all of the information and footnotes required by U.S. GAAP for complete financial statements. The condensed consolidated financial statements include the accounts and operations of the Company and its subsidiaries. Readers are encouraged to review the Company’s Annual Report on Form 10-K for the year ended December 31, 2015 for a more complete description of the Company’s business and accounting policies. In the opinion of management, all adjustments necessary for a fair presentation of the condensed consolidated financial statements have been included. Such adjustments consist only of normal recurring items. Interim results are not necessarily indicative of results of operations for the full year. The consolidated balance sheet as of December 31, 2015 was derived from the Company’s audited annual consolidated financial statements. Significant intercompany transactions and balances have been eliminated. Estimates and Assumptions Preparation of the condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying disclosures. Those estimates are inherently subject to change, and actual results may ultimately differ from those estimates. Variable Interest Entities Entities that do not have sufficient equity at risk to allow the entity to finance its activities without additional financial support or in which the equity investors, as a group, do not have the characteristic of a controlling financial interest are referred to as variable interest entities (“VIE”). A VIE is consolidated by the variable interest holder that is determined to have the controlling financial interest (primary beneficiary) as a result of having both (1) the power to direct the activities of a VIE that most significantly impact the VIE’s economic performance and (2) the obligation to absorb losses or right to receive benefits from the VIE that could potentially be significant to the VIE. The Company determines whether it is the primary beneficiary of an entity subject to consolidation based on a qualitative assessment of the VIE’s capital structure, contractual terms, nature of the VIE’s operations and purpose, and the Company’s relative exposure to the related risks of the VIE on the date it becomes initially involved in the VIE. The Company reassesses its VIE determination with respect to an entity on an ongoing basis. The Company holds interests in VIEs through certain equity method investments in limited liability companies (“LLCs”) included in “other invested assets” in the accompanying condensed consolidated balance sheets. The Company has determined that it should not consolidate any of the VIEs as it is not the primary beneficiary in any of the relationships. Although the investments resulted in the Company holding variable interests in the entities, they did not empower the Company to direct the activities that most significantly impact the economic performance of the entities. The Company’s investments related to these VIEs totaled $23.8 million and $26.0 million as of June 30, 2016 and December 31, 2015, respectively, representing the Company’s maximum exposure to loss. Prospective Accounting Standards In May 2014, the FASB issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers (Topic 606) In May 2015, the FASB issued ASU 2015-09, Insurance (Topic 944), Disclosures about Short-Duration Contracts In January 2016, the FASB issued ASU 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) In March 2016, the FASB issued ASU 2016-09, Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting ASU also removes the requirement to delay recognition of a tax benefit until it reduces current taxes payable. This change is required to be applied on a modified retrospective basis, with a cumulative-effect adjustment to opening retained earnings. Additionally, all tax related cash flows resulting from share-based payments are to be reported as operating activities on the statement of cash flows, a change from the current requirement to present tax benefits as an inflow from financing activities and an outflow from operating activities. This ASU is effective for fiscal years beginning after December 15, 2016, and early adoption is permitted. The Company is currently evaluating ASU 2016-09 to determine the potential impact that adopting the standard will have on its consolidated financial statements. In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. |
Investments
Investments | 6 Months Ended |
Jun. 30, 2016 | |
Investments [Abstract] | |
Investments | 2. Investments The Company’s available-for-sale investments are summarized as follows: Cost or Gross Gross Fair (in thousands) June 30, 2016 Fixed maturity securities: State and municipal $ 93,311 $ 9,742 $ (3 ) $ 103,050 Residential mortgage-backed 164,910 3,055 (187 ) 167,778 Corporate 377,232 16,271 (4,124 ) 389,379 Commercial mortgage and asset-backed 136,001 2,614 (99 ) 138,516 Obligations of U.S. government corporations and agencies 78,215 685 – 78,900 U.S. Treasury securities and obligations guaranteed by the U.S. government 72,012 898 – 72,910 Redeemable preferred stock 2,025 14 2,039 Total fixed maturity securities 923,706 33,279 (4,413 ) 952,572 Equity securities 84,005 10,533 (1,846 ) 92,692 Total investments available-for-sale $ 1,007,711 $ 43,812 $ (6,259 ) $ 1,045,264 December 31, 2015 Fixed maturity securities: State and municipal $ 95,864 $ 7,728 $ (135 ) $ 103,457 Residential mortgage-backed 137,308 1,718 (2,139 ) 136,887 Corporate 368,961 3,988 (9,781 ) 363,168 Commercial mortgage and asset-backed 130,231 890 (425 ) 130,696 Obligations of U.S. government corporations and agencies 89,734 698 (269 ) 90,163 U.S. Treasury securities and obligations guaranteed by the U.S. government 73,322 165 (232 ) 73,255 Redeemable preferred stock 2,025 9 – 2,034 Total fixed maturity securities 897,445 15,196 (12,981 ) 899,660 Equity securities 69,830 5,512 (1,231 ) 74,111 Total investments available-for-sale $ 967,275 $ 20,708 $ (14,212 ) $ 973,771 The amortized cost and fair value of available-for-sale investments in fixed maturity securities at June 30, 2016 are summarized, by contractual maturity, as follows: Cost or Fair (in thousands) One year or less $ 55,893 $ 56,053 After one year through five years 288,962 292,639 After five years through ten years 158,539 166,278 After ten years 117,376 129,269 Residential mortgage-backed 164,910 167,778 Commercial mortgage and asset-backed 136,001 138,516 Redeemable preferred stock 2,025 2,039 Total $ 923,706 $ 952,572 Actual maturities may differ for some securities because borrowers have the right to call or prepay obligations with or without penalties. The following table shows the Company’s gross unrealized losses and fair value for available-for-sale securities aggregated by investment category and the length of time that individual securities have been in a continuous unrealized loss position: Less Than 12 Months 12 Months or More Total Fair Gross Fair Gross Fair Gross (in thousands) June 30, 2016 Fixed maturity securities: State and municipal $ 752 $ (3 ) $ – $ – $ 752 $ (3 ) Residential mortgage-backed – – 37,984 (187 ) 37,984 (187 ) Corporate 145 – 11,149 (4,124 ) 11,294 (4,124 ) Commercial mortgage and asset-backed 27,932 (42 ) 6,187 (57 ) 34,119 (99 ) Total fixed maturity securities 28,829 (45 ) 55,320 (4,368 ) 84,149 (4,413 ) Equity securities 4,488 (600 ) 5,897 (1,246 ) 10,385 (1,846 ) Total investments available-for-sale $ 33,317 $ (645 ) $ 61,217 $ (5,614 ) $ 94,534 $ (6,259 ) Less Than 12 Months 12 Months or More Total Fair Gross Fair Gross Fair Gross (in thousands) December 31, 2015 Fixed maturity securities: State and municipal $ 9,492 $ (135 ) $ – $ – $ 9,492 $ (135 ) Residential mortgage-backed 39,895 (465 ) 40,656 (1,674 ) 80,551 (2,139 ) Corporate 177,149 (5,281 ) 6,433 (4,500 ) 183,582 (9,781 ) Commercial mortgage and asset-backed 74,518 (339 ) 11,437 (86 ) 85,955 (425 ) Obligations of U.S. government corporations and agencies 43,907 (231 ) 4,012 (38 ) 47,919 (269 ) U.S. Treasury securities and obligations guaranteed by the U.S. government 49,452 (213 ) 2,186 (19 ) 51,638 (232 ) Total fixed maturity securities 394,413 (6,664 ) 64,724 (6,317 ) 459,137 (12,981 ) Equity securities 4,196 (172 ) 5,704 (1,059 ) 9,900 (1,231 ) Total investments available-for-sale $ 398,609 $ (6,836 ) $ 70,428 $ (7,376 ) $ 469,037 $ (14,212 ) The Company held securities of 31 issuers at June 30, 2016 that were in an unrealized loss position with a total fair value of $94.5 million and gross unrealized losses of $6.3 million. None of the fixed maturity securities with unrealized losses has ever missed, or been delinquent on, a scheduled principal or interest payment. At June 30, 2016, 86.3% of the Company’s fixed maturity security portfolio was rated “A-“ or better by Standard & Poor’s or received an equivalent rating from another nationally recognized rating agency. Fixed maturity securities with ratings below investment grade by Standard & Poor’s or another nationally recognized rating agency at June 30, 2016 had an aggregate fair value of $11.1 million and an aggregate net unrealized loss of $3.4 million. Management concluded that none of the fixed maturity securities with an unrealized loss at June 30, 2016 or December 31, 2015 experienced an other-than-temporary impairment. Management does not intend to sell available-for-sale securities in an unrealized loss position, and it is not “more likely than not” that the Company will be required to sell these securities before a recovery in their value to their amortized cost basis occurs. Management also concluded that none of the equity securities with an unrealized loss at June 30, 2016 or December 31, 2015 experienced an other-than-temporary impairment. Management has evaluated the near-term prospects of these equity securities in relation to the severity and duration of the impairment, and management has the ability and intent to hold these securities until a recovery of their fair value. At March 31, 2015 the Company held two municipal bonds issued by the Commonwealth of Puerto Rico with at total par value of $4.5 million. Puerto Rico’s weak economic conditions and heavy debt burden heightened the risk of default on the bonds and management concluded that the bonds, which had been downgraded to below investment grade, were other-than-temporarily impaired at March 31, 2015. The Company recognized impairment losses of $660,000 for the three months ended March 31, 2015. The bonds were sold during the second quarter of 2015 and a net realized gain of $22,000 was recognized on the sales. At December 31, 2015, the Company held participations in two loans issued by companies that produce and supply power to Puerto Rico through power purchase agreements with Puerto Rico Electric Power Authority (“PREPA”), a public corporation and governmental agency of the Commonwealth of Puerto Rico. PREPA’s credit strength and ability to make timely payments was impacted by the economic conditions in Puerto Rico, thus raising doubt about the companies’ ability to meet the debt obligations held by the Company. Management concluded that the loans were impaired at December 31, 2015. The allowance for credit losses on the loans was $414,000. The loans had a carrying value of $3.9 million and unpaid principal of $4.6 million at December 31, 2015. One of the loans was repaid in full at its scheduled maturity in June 2016. Management concluded that the remaining loan, scheduled to mature in 2017, was still impaired at June 30, 2016. The allowance for credit losses on the loan was $239,000 at June 30, 2016. The loan had a carrying value of $2.2 million and unpaid principal of $2.6 million at June 30, 2016. A number of the Company’s bank loans are to oil and gas companies in the energy sector. The market values of these loans were impacted by declining energy prices. At June 30, 2016, the Company’s oil and gas exposure was in six bank loans and one bond with a total carrying value of $16.2 million and an unrealized loss of $2.0 million. Management concluded that two of these loans continued to be impaired as of June 30, 2016 and December 31, 2015. At June 30, 2016, these loans had a carrying value of $2.1 million, unpaid principal of $5.8 million and an allowance for credit losses of $3.4 million. At December 31, 2015, the loans had a carrying value of $1.7 million, unpaid principal of $5.8 million and an allowance for credit losses of $3.9 million. All of the other loans are current at June 30, 2016. Management also concluded that one non-energy sector loan was impaired at June 30, 2016 and December 31, 2015. At June 30, 2016, the loan had a carrying value of $603,000, unpaid principal of $718,000, and an allowance for credit losses of $115,000. At December 31, 2015, the loan had a carrying value of $689,000, unpaid principal of $722,000, and an allowance for credit losses of $34,000. The aggregate allowance for credit losses was $3.7 million at June 30, 2016 on four impaired loans with a total carrying value of $5.0 million and unpaid principal of $9.1 million. At December 31, 2015, the aggregate allowance for credit losses was $4.3 million on five impaired loans with a total carrying value of $6.3 million and unpaid principal of $11.1 million. Bank loan participations generally have a credit rating that is below investment grade (i.e. below “BBB-” for Standard & Poor’s) at the date of purchase. These bank loans are primarily senior, secured floating-rate debt rated “BB”, “B” or “CCC” by Standard & Poor’s or an equivalent rating from another nationally recognized rating agency. These bank loans include assignments of, and participations in, performing and non-performing senior corporate debt generally acquired through primary bank syndications and in secondary markets. Bank loans consist of, but are not limited to, term loans, the funded and unfunded portions of revolving credit loans, and other similar loans and investments. Management believed that it was probable at the time that these loans were acquired that the Company would be able to collect all contractually required payments receivable. Generally, the accrual of interest on a bank loan participation is discontinued when the contractual payment of principal or interest has become 90 days past due or management has serious doubts about further collectability of principal or interest. A bank loan participation may remain on accrual status if it is in the process of collection and is either guaranteed or well secured. Generally, bank loan participations are restored to accrual status when the obligation is brought current, has performed in accordance with the contractual terms for a reasonable period of time, and the ultimate collectability of the total contractual principal and interest is no longer in doubt. Interest received on nonaccrual loans generally is reported as investment income. There were no bank loans on nonaccrual status at June 30, 2016 or December 31, 2015. The allowance for credit losses is maintained at a level believed adequate by management to absorb estimated probable credit losses. Management’s periodic evaluation of the adequacy of the allowance is based on consultations and a of the Company’s independent investment manager, known and inherent risks in the portfolio, adverse situations that may affect the borrower’s ability to repay, the estimated value of any underlying collateral, current economic conditions, and other relevant factors. The Company generally records an allowance equal to the difference between the fair value and the amortized cost of bank loans that it has determined to be impaired as a practical expedient for an estimate of probable future cash flows to be collected on those bank loans. Bank loans are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. The average recorded investment in impaired bank loans was $5.6 million and $7.8 million during the six months ended June 30, 2016 and 2015, respectively. Investment income of $170,000 and $153,000, respectively, was recognized during the time within those periods that the loans were impaired. The Company recorded net realized gains of $913,000 and $610,000, respectively, in the three months and six months ended June 30, 2016 and net realized gains of $175,000 and $203,000, respectively, in the three months and six months ended June 30, 2015 for changes in the fair value of impaired bank loans. Changes in unrealized gains or losses on securities held for trading are recorded as trading gains or losses within net investment income. Net investment income for the three months and six months ended June 30, 2016 includes $7,000 and $19,000, respectively, of net trading gains of which $7,000 and $19,000, respectively, relates to securities held at June 30, 2016. The Company’s realized gains and losses are summarized as follows: Three Months Ended Six Months Ended 2016 2015 2016 2015 (in thousands) Fixed maturity securities: Gross realized gains $ 568 $ 101 $ 1,410 $ 1,288 Gross realized losses (1 ) (5 ) (2 ) (665 ) 567 96 1,408 623 Bank loan participations: Gross realized gains 1,133 242 1,193 532 Gross realized losses (81 ) (12 ) (433 ) (3,654 ) 1,052 230 760 (3,122 ) Short-term investments and other: Gross realized gains 1 24 1 47 Gross realized losses (1 ) – (3 ) (4 ) – 24 (2 ) 43 Total $ 1,619 $ 350 $ 2,166 $ (2,456 ) Realized investment gains or losses are determined on a specific identification basis. The Company invests selectively in private debt and equity opportunities. These investments, which together comprise the Company’s other invested assets, are primarily focused in renewable energy, limited partnerships, and bank holding companies. Investment Income Carrying Value Three Months Ended Six Months Ended June 30, December 31, June 30, June 30, 2016 2015 2016 2015 2016 2015 (in thousands) Category Renewable energy LLCs (a) $ 23,777 $ 26,001 $ (1,451 ) $ 2,163 $ (769 ) $ 4,615 Renewable energy bridge financing notes (b) – 6,500 207 874 450 1,499 Limited partnerships (c) 19,755 17,503 1,680 85 1,836 (74 ) Bank holding companies (d) 4,500 4,500 86 86 172 172 Total other invested assets $ 48,032 $ 54,504 $ 522 $ 3,208 $ 1,689 $ 6,212 (a) The Company’s Corporate and Other segment owns equity interests ranging from 2.7% to 33.3% in various LLCs whose principal objective is capital appreciation and income generation from owning and operating renewable energy production facilities (wind and solar). The LLCs are managed by an affiliate of the Company’s largest shareholder and the Company’s Chairman and Chief Executive Officer has invested in certain of these LLCs. The equity method is used to account for the Company’s LLC investments. (b) The Company has held investments in bridge loans for renewable energy projects. The notes, all with affiliates of the Company’s largest shareholder, generally matured in less than one year and carried primarily variable rates of interest ranging from 7.3% to 15.0%. O (c) The Company owns investments in limited partnerships that invest in concentrated portfolios of high yield bonds of companies undergoing financial stress, publicly-traded small cap equities, loans of middle market private equity sponsored companies, and Income from the partnerships is recognized under the equity method of accounting. The Company’s Corporate and Other segment held investments in limited partnerships of $2.4 million at June 30, 2016 and recognized investment income of $235,000 and investment losses of $74,000 for the six months ended June 30, 2016 and 2015, respectively. The Chairman and Chief Executive Officer of the Company is an investor in one limited partnership held by the Corporate and Other segment. The Company’s Excess and Surplus Lines segment holds investments in limited partnerships of $17.4 million at June 30, 2016. Investment income of $1.6 million was recognized on the investments for the six months ended June 30, 2016. At June 30, 2016 the Company’s Excess and Surplus lines segment has an outstanding commitment to invest another $2.6 million in a limited partnership that invests in loans of middle market private equity sponsored companies. (d) The Company holds $4.5 million of subordinated notes issued by a bank holding company. Interest on the notes, which mature on August 12, 2023, is fixed at 7.6% per annum. Interest income on the notes was $172,000 in both six months ended June 30, 2016 and 2015. The Company’s Chairman and Chief Executive Officer is the Lead Independent Director of the bank holding company and is an investor in the bank holding company. Additionally, one of the Company’s directors is an investor in the bank holding company and a lender to the bank holding company. The Company’s Chief Financial Officer is a former investor in the bank holding company. The Company holds common shares issued by the bank holding company. The shares, which are publicly traded, are classified as available-for sale equity securities and carried at fair value ($8.3 million at June 30, 2016 and $8.4 million at December 31, 2015). Income of $233,000 was recognized on the shares for the six months ended June 30, 2016. The Company holds a $1.0 million certificate of deposit issued by the bank holding company. The certificate of deposit, which matures on December 19, 2016, is carried as a short-term investment. Interest income of $6,000 and $3,000 was recognized on this investment for the six months ended June 30, 2016 and 2015, respectively. Two of the Company’s directors were members of the board of managers of First Wind Capital, LLC (“First Wind”) until January 29, 2015. First Wind is an affiliate of the Company’s largest shareholder. At December 31, 2014, the Company held fixed maturity securities with a fair value of $12.6 million issued by First Wind. These securities were called in March 2015, resulting in a realized gain of $845,000. Also at December 31, 2014, the Company held a bank loan participation with a carrying value of $4.6 million from an affiliate of First Wind. The loan was repaid in full in January 2015. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 6 Months Ended |
Jun. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | 3. Goodwill and Intangible Assets On December 11, 2007, the Company completed an acquisition of James River Group by acquiring 100% of the outstanding shares of James River Group common stock, referred to herein as the “Merger”. The transaction was accounted for under the purchase method of accounting, and goodwill and intangible assets were recognized by the Company as a result of the transaction. Goodwill resulting from the Merger was $181.8 million at June 30, 2016 and December 31, 2015. The gross carrying amounts and accumulated amortization for each major specifically identifiable intangible asset class were as follows: June 30, 2016 December 31, 2015 Life (Years) Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization ($ in thousands) Intangible Assets Trademarks Indefinite $ 22,200 $ – $ 22,200 $ – Insurance licenses and authorities Indefinite 9,164 – 9,164 – Identifiable intangibles not subject to amortization 31,364 – 31,364 – Broker relationships 24.6 11,611 3,745 11,611 3,447 Identifiable intangible assets subject to amortization 11,611 3,745 11,611 3,447 $ 42,975 $ 3,745 $ 42,975 $ 3,447 |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 4. Earnings Per Share The following represents a reconciliation of the numerator and denominator of the basic and diluted earnings per share computations contained in the condensed consolidated financial statements. Three Months Ended Six Months Ended 2016 2015 2016 2015 (in thousands, except share and per share amounts) Net income to shareholders $ 14,596 $ 12,489 $ 27,433 $ 21,866 Weighted average common shares outstanding: Basic 29,035,512 28,547,616 28,994,260 28,544,003 Common share equivalents 790,402 667,243 789,823 612,601 Diluted 29,825,914 29,214,859 29,784,083 29,156,604 Earnings per share: Basic $ 0.50 $ 0.44 $ 0.95 $ 0.77 Common share equivalents (0.01 ) (0.01 ) (0.03 ) (0.02 ) Diluted $ 0.49 $ 0.43 $ 0.92 $ 0.75 Common share equivalents relate to stock options and restricted share units (“RSU’s”). For the three months and six months ended June 30, 2016, all common share equivalents are dilutive. For the three months and six months ended June 30, 2015, common share equivalents of 994,335 and 995,180 shares, respectively, are excluded from the calculations of diluted earnings per share as their effects are anti-dilutive. |
Reserve for Losses and Loss Adj
Reserve for Losses and Loss Adjustment Expenses | 6 Months Ended |
Jun. 30, 2016 | |
Liability for Claims and Claims Adjustment Expense [Abstract] | |
Reserve for Losses and Loss Adjustment Expenses | 5. Reserve for Losses and Loss Adjustment Expenses The following table provides a reconciliation of the beginning and ending reserve balances for losses and loss adjustment expenses, net of reinsurance, to the gross amounts reported in the condensed consolidated balance sheets: Three Months Ended Six Months Ended 2016 2015 2016 2015 (in thousands) Reserve for losses and loss adjustment expenses net of reinsurance recoverables at beginning of period $ 672,588 $ 614,969 $ 653,534 $ 589,042 Add: Incurred losses and loss adjustment expenses net of reinsurance: Current year 81,407 70,449 159,580 147,422 Prior years (4,748 ) (2,518 ) (9,415 ) (5,007 ) Total incurred losses and loss and adjustment expenses 76,659 67,931 150,165 142,415 Deduct: Loss and loss adjustment expense payments net of reinsurance: Current year 8,946 9,601 10,890 14,603 Prior years 50,670 45,795 103,178 89,350 Total loss and loss adjustment expense payments 59,616 55,396 114,068 103,953 Reserve for losses and loss adjustment expenses net of reinsurance recoverables at end of period 689,631 627,504 689,631 627,504 Add: Reinsurance recoverables on unpaid losses and loss adjustment expenses at end of period 153,706 134,750 153,706 134,750 Reserve for losses and loss adjustment expenses gross of reinsurance recoverables on unpaid losses and loss adjustment expenses at end of period $ 843,337 $ 762,254 $ 843,337 $ 762,254 A $4.7 million reserve redundancy developed in the three months ended June 30, 2016 on the reserve for losses and loss adjustment expenses held at December 31, 2015. This favorable reserve development included $3.6 million of favorable development in the Excess and Surplus Lines segment primarily from the 2014, 2013, and 2008 accident years. This favorable development occurred because our actuarial studies at June 30, 2016 for the Excess and Surplus Lines segment indicated that our loss experience on our casualty business continues to be below our initial expected loss ratios. The Company also experienced $617,000 and $520,000 of favorable development on prior accident years for the Specialty Admitted Insurance segment and Casualty Reinsurance segment, respectively. The Company experienced $2.5 million of favorable reserve development in the three months ended June 30, 2015 on the reserve for losses and loss adjustment expenses held at December 31, 2014. This reserve development included $3.4 million of favorable development in the Excess and Surplus Lines segment, primarily from the 2014, 2013 and 2012 accident years. This favorable development occurred because our actuarial studies at June 30, 2015 for the Excess and Surplus Lines segment indicated that our loss experience on our casualty business continues to be below our initial expected loss ratios. The Company also experienced $189,000 of favorable development for the Specialty Admitted Insurance segment partially offset by $1.1 million of adverse development in the Casualty Reinsurance segment, primarily related to one reinsurance treaty from the 2012 underwriting year. This treaty contained deficit carry forward provisions which resulted in favorable adjustments of a similar magnitude to reduce sliding scale commissions on the treaty. A $9.4 million reserve redundancy developed in the six months ended June 30, 2016 on the reserve for losses and loss adjustment expenses held at December 31, 2015. This favorable reserve development included $8.0 million of favorable development in the Excess and Surplus Lines segment primarily from the 2014, 2013, and 2012 accident years. This favorable development occurred because our actuarial studies at June 30, 2016 for the Excess and Surplus Lines segment indicated that our loss experience on our casualty business continues to be below our initial expected loss ratios. The Company also experienced $928,000 and $483,000 of favorable development on prior accident years for the Specialty Admitted Insurance and Casualty Reinsurance segment, respectively. A $5.0 million reserve redundancy developed in the six months ended June 30, 2015 on the reserve for losses and loss adjustment expenses held at December 31, 2014. This favorable reserve development included $8.4 million of favorable development in the Excess and Surplus Lines segment primarily from the 2014, 2013, and 2012 accident years. This favorable development occurred because our actuarial studies at June 30, 2015 for the Excess and Surplus Lines segment indicated that our loss experience on our casualty business continues to be below our initial expected loss ratios. The Company also experienced $196,000 of favorable development on prior accident years for the Specialty Admitted Insurance segment. The favorable development in the Excess and Surplus Lines and Specialty Admitted Insurance segments was partially offset by $3.6 million of adverse reserve development in the Casualty Reinsurance segment, primarily related to one reinsurance relationship from the 2011 underwriting year that experienced higher loss development in 2015 than expected. |
Other Comprehensive Income
Other Comprehensive Income | 6 Months Ended |
Jun. 30, 2016 | |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Other Comprehensive Income | 6. Other Comprehensive Income The following table summarizes the components of comprehensive income: Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 (in thousands) Unrealized gains (losses) arising during the period, before U.S. income taxes $ 15,346 $ (16,788 ) $ 32,464 $ (11,577 ) U.S. income taxes (2,147 ) 1,871 (3,077 ) 1,330 Unrealized gains (losses) arising during the period, net of U.S. income taxes 13,199 (14,917 ) 29,387 (10,247 ) Less reclassification adjustment: Net realized investment gains 567 96 1,408 623 U.S. income tax (expense) benefit (160 ) (8 ) (433 ) 186 Reclassification adjustment for investment gains realized in net income 407 88 975 809 Other comprehensive income (loss) $ 12,792 $ (15,005 ) $ 28,412 $ (11,056 ) |
Contingent Liabilities
Contingent Liabilities | 6 Months Ended |
Jun. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingent Liabilities | 7. Contingent Liabilities The Company is a party to various lawsuits arising in the ordinary course of its operations. The Company believes that the ultimate resolution of these matters will not materially impact its financial position, cash flows, or results of operations. The Company’s reinsurance subsidiary, JRG Re, entered into two letter of credit facilities with banks as security to third-party reinsureds on reinsurance assumed by JRG Re. JRG Re has established custodial accounts to secure these letters of credit. Under a $100.0 million facility, $88.8 million of letters of credit were issued through June 30, 2016, which were secured by deposits of $113.7 million. Under a $102.5 million facility, $38.4 million of letters of credit were issued through June 30, 2016, which were secured by deposits of $50.1 million. JRG Re has also established trust accounts to secure its obligations to selected reinsureds. The total amount deposited in the trust accounts for the benefit of third-party reinsured was $235.3 million at June 30, 2016. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2016 | |
Segment Reporting [Abstract] | |
Segment Information | 8. Segment Information The Company has four reportable segments: the Excess and Surplus Lines segment, the Specialty Admitted Insurance segment, the Casualty Reinsurance segment, and the Corporate and Other segment. Segment profit (loss) is measured by underwriting profit (loss), which is generally defined as net earned premiums less loss and loss adjustment expenses and other operating expenses of the operating segments. Fee income and expenses of the Excess and Surplus Lines segment is included in that segment’s underwriting profit (loss). Fee income of the Excess and Surplus Lines Segment of $2.7 million and $2.1 million was included in underwriting profit for the three months ended June 30, 2016 and 2015, respectively. For the six months ended June 30, 2016 and 2015, fee income included in underwriting profit was $5.0 million and $ 2.4 The following table summarizes the Company’s segment results: Excess and Specialty Casualty Corporate Total (in thousands) Three Months Ended June 30, 2016 Gross written premiums $ 97,427 $ 34,201 $ 39,043 $ ‒ $ 170,671 Net earned premiums 70,565 12,207 35,783 ‒ 118,555 Underwriting profit of insurance segments 9,783 125 206 ‒ 10,114 Net investment income (loss) 5,079 640 6,936 (1,102 ) 11,553 Interest expense ‒ ‒ ‒ 2,041 2,041 Segment revenues 78,940 13,329 43,304 (1,062 ) 134,511 Segment goodwill 181,831 ‒ ‒ ‒ 181,831 Segment assets 731,324 215,034 1,148,489 95,014 2,189,861 Excess and Specialty Casualty Corporate Total (in thousands) Three Months Ended June 30, 2015 Gross written premiums $ 77,417 $ 17,931 $ 88,663 $ – $ 184,011 Net earned premiums 52,867 10,150 43,043 – 106,060 Underwriting profit of insurance segments 5,769 199 594 – 6,562 Net investment income 3,706 583 5,656 3,055 13,000 Interest expense – – – 1,744 1,744 Segment revenues 57,531 10,760 48,845 3,091 120,227 Segment goodwill 181,831 – – – 181,831 Segment assets 712,047 140,654 1,098,508 111,503 2,062,712 Six Months Ended June 30, 2016 Gross written premiums $ 179,535 $ 62,888 $ 61,319 $ ‒ $ 303,742 Net earned premiums 136,070 23,612 76,003 ‒ 235,685 Underwriting profit of insurance segments 18,987 600 540 ‒ 20,127 Net investment income 8,365 1,251 13,163 46 22,825 Interest expense ‒ ‒ ‒ 4,215 4,215 Segment revenues 150,730 25,376 89,612 122 265,840 Segment goodwill 181,831 ‒ ‒ ‒ 181,831 Segment assets 731,324 215,034 1,148,489 95,014 2,189,861 Six Months Ended June 30, 2015 Gross written premiums $ 153,135 $ 38,857 $ 123,277 $ – $ 315,269 Net earned premiums 112,267 19,705 91,099 – 223,071 Underwriting profit of insurance segments 13,212 44 635 – 13,891 Net investment income 7,072 1,102 10,717 6,095 24,986 Interest expense – – – 3,448 3,448 Segment revenues 118,569 20,962 100,997 6,166 246,694 Segment goodwill 181,831 – – – 181,831 Segment assets 712,047 140,654 1,098,508 111,503 2,062,712 The following table reconciles the underwriting profit (loss) of the operating segments by individual segment to consolidated income before taxes: Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 (in thousands) Underwriting profit (loss) of the insurance segments: Excess and Surplus Lines $ 9,783 $ 5,769 $ 18,987 $ 13,212 Specialty Admitted Insurance 125 199 600 44 Casualty Reinsurance 206 594 540 635 Total underwriting profit of insurance segments 10,114 6,562 20,127 13,891 Other operating expenses of the Corporate and Other segment (5,475 ) (4,255 ) (10,727 ) (8,634 ) Underwriting profit 4,639 2,307 9,400 5,257 Net investment income 11,553 13,000 22,825 24,986 Net realized investment gains 1,619 350 2,166 (2,456 ) Amortization of intangible assets (149 ) (149 ) (298 ) (298 ) Other income and expenses (24 ) (10 ) 52 (23 ) Interest expense (2,041 ) (1,744 ) (4,215 ) (3,448 ) Income before taxes $ 15,597 $ 13,754 $ 29,930 $ 24,018 |
Other Operating Expenses and Ot
Other Operating Expenses and Other Expenses | 6 Months Ended |
Jun. 30, 2016 | |
Other Operating Expenses And Other Expenses [Abstract] | |
Other Operating Expenses and Other Expenses | 9. Other Operating Expenses and Other Expenses Other operating expenses consist of the following: Three Months Ended Six Months Ended 2016 2015 2016 2015 (in thousands) Amortization of policy acquisition costs $ 22,710 $ 22,400 $ 45,791 $ 46,902 Other underwriting expenses of the operating segments 11,789 9,925 24,635 20,841 Other operating expenses of the Corporate and Other segment 5,475 4,255 10,727 8,634 Total $ 39,974 $ 36,580 $ 81,153 $ 76,377 Other expenses for the three months and six months ended June 30, 2016 and 2015 total $91,000 and $69,000, and $79,000 and $138,000, respectively. Other expenses include filing fees, expenses associated with the Company’s minority investment in a partnership that was involved in the construction of a building that the Company was deemed to own for accounting purposes, and due diligence costs for various merger and acquisition activities which were not consummated. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 10. Fair Value Measurements Three levels of inputs are used to measure fair value of financial instruments: (1) Level 1: quoted price (unadjusted) in active markets for identical assets, (2) Level 2: inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the instrument, and (3) Level 3: inputs to the valuation methodology are unobservable for the asset or liability. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability in the principal or most advantageous market in an orderly transaction between market participants on the measurement date. To measure fair value, the Company obtains quoted market prices for its investment securities from its outside investment managers. If a quoted market price is not available, the Company uses prices of similar securities. Values for U.S. Treasury and publicly-traded equity securities are generally based on Level 1 inputs which use the market approach valuation technique. The values for all other fixed maturity securities (including state and municipal securities and obligations of U.S. government corporations and agencies) generally incorporate significant Level 2 inputs, and in some cases, Level 3 inputs, using the market approach and income approach valuation techniques. There have been no changes in the Company’s use of valuation techniques since December 31, 2014. The Company reviews fair value prices provided by its outside investment managers for reasonableness by comparing the fair values provided by the managers to those provided by its investment custodian. The Company also reviews and monitors changes in unrealized gains and losses. The Company has not historically adjusted security prices. The Company obtains an understanding of the methods, models and inputs used by the investment managers and independent pricing services, and controls are in place to validate that prices provided represent fair values. The Company’s control process includes, but is not limited to, initial and ongoing evaluation of the methodologies used, a review of specific securities and an assessment for proper classification within the fair value hierarchy, and obtaining and reviewing internal control reports for our investment manager that obtains fair values from independent pricing services. Assets measured at fair value on a recurring basis as of June 30, 2016 are summarized below: Fair Value Measurements Using Quoted Prices Significant Significant Level 1 Level 2 Level 3 Total (in thousands) Available-for-sale securities: Fixed maturity securities: State and municipal $ ‒ $ 103,050 $ ‒ $ 103,050 Residential mortgage-backed ‒ 167,778 ‒ 167,778 Corporate ‒ 389,379 ‒ 389,379 Commercial mortgage and asset-backed ‒ 133,516 5,000 138,516 Obligations of U.S. government corporations and agencies ‒ 78,900 ‒ 78,900 U.S. Treasury securities and obligations guaranteed by the U.S. government 72,189 721 ‒ 72,910 Redeemable preferred stock ‒ 2,039 ‒ 2,039 Total fixed maturity securities 72,189 875,383 5,000 952,572 Equity securities: Preferred stock ‒ 69,052 ‒ 69,052 Common stock 22,906 734 ‒ 23,640 Total equity securities 22,906 69,786 ‒ 92,692 Total available-for-sale securities $ 95,095 $ 945,169 $ 5,000 $ 1,045,264 Trading securities: Fixed maturity securities $ ‒ $ 5,064 $ ‒ $ 5,064 Short-term investments $ 1,100 $ 13,806 $ ‒ $ 14,906 Assets measured at fair value on a recurring basis as of December 31, 2015 are summarized below: Fair Value Measurements Using Quoted Prices Significant Significant Level 1 Level 2 Level 3 Total (in thousands) Available-for-sale securities: Fixed maturity securities: State and municipal $ – $ 103,457 $ – $ 103,457 Residential mortgage-backed – 136,887 – 136,887 Corporate – 363,168 – 363,168 Commercial mortgage and asset-backed – 125,696 5,000 130,696 Obligations of U.S. government corporations and agencies – 90,163 – 90,163 U.S. Treasury securities and obligations guaranteed by the U.S. government 72,542 713 – 73,255 Redeemable preferred stock – 2,034 – 2,034 Total fixed maturity securities 72,542 822,118 5,000 899,660 Equity securities: Preferred stock – 54,092 – 54,092 Common stock 19,285 734 – 20,019 Total equity securities 19,285 54,826 – 74,111 Total available-for-sale securities $ 91,827 $ 876,944 $ 5,000 $ 973,771 Trading securities: Fixed maturity securities $ 1,244 $ 3,802 $ – $ 5,046 Short-term investments $ 2,926 $ 16,344 $ – $ 19,270 The beginning and ending balances of assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) consist of one available-for-sale fixed maturity security with a fair value of $5.0 million, and there was no activity (purchases, sales, transfers, gains or losses) involving Level 3 securities for the three months or six months ended June 30, 2016 and 2015. A market approach using prices in trades of comparable securities was utilized to determine the fair value of this security at June 30, 2016 and December 31, 2015. Transfers out of Level 3 occur when the Company is able to obtain reliable prices from pricing vendors for securities for which the Company was previously unable to obtain reliable prices. Transfers to Level 3 occur when the Company is unable to obtain reliable prices for securities from pricing vendors and instead must use broker price quotes to value the securities. There were no transfers between Level 1 and Level 2 during the three months or six months ended June 30, 2016 or 2015. The Company recognizes transfers between levels at the beginning of the reporting period. There were no realized gains or losses included in earnings for the three months or six months ended June 30, 2016 attributable to the change in unrealized gains or losses relating to Level 3 assets valued at fair value on a recurring basis that are still held at June 30, 2016. The Company measures certain bank loan participations at fair value on a nonrecurring basis during the year as part of the Company’s impairment evaluation when loans are determined by management to be impaired. Assets measured at fair value on a nonrecurring basis are summarized below: Fair Value Measurements Using Quoted Prices In Active Markets for Identical Assets Level 1 Significant Other Observable Inputs Level 2 Significant Unobservable Inputs Level 3 Total (in thousands) June 30, 2016 Bank loan participations held-for-investment $ – $ – $ 2,745 $ 2,745 December 31, 2015 Bank loan participations held-for-investment $ – $ – $ 2,342 $ 2,342 Bank loan participations held-for-investment that were determined to be impaired were carried at their fair value of $2.7 million at June 30, 2016 and $2.3 million at December 31, 2015. In the determination of the fair value for bank loan participations and certain high yield bonds, the Company’s outside investment manager endeavors to obtain data from multiple external pricing sources. External pricing sources may include brokers, dealers and price data vendors that provide a composite price based on prices from multiple dealers. Such external pricing sources typically provide valuations for normal institutional size trading units of such securities using methods based on market transactions for comparable securities, and various relationships between securities, as generally recognized by institutional dealers. For investments in which the outside investment manager determines that only one external pricing source is appropriate or if only one external price is available, the relevant investment is generally recorded at fair value based on such price. Investments for which external sources are not available or are determined by the outside investment manager not to be representative of fair value are recorded at fair value as determined by the investment manager. In determining the fair value of such investments, the investment manager considers one or more of the following factors: type of security held, convertibility or exchangeability of the security, redeemability of the security (including timing of redemptions), application of industry accepted valuation models, recent trading activity, liquidity, estimates of liquidation value, purchase cost, and prices received for securities with similar terms of the same issuer or similar issuers. At June 30, 2016, there were bank loan participations with an unpaid principal balance of $3.2 million and a carrying value of $2.8 million for which external sources were unavailable to determine fair value. At December 31, 2015, there were bank loan participations with an unpaid principal balance of $5.3 million and a carrying value of $4.6 million for which external sources were unavailable to determine fair value. The carrying values and fair values of financial instruments are summarized below: June 30, 2016 December 31, 2015 Carrying Fair Value Carrying Fair Value (in thousands) Assets Available-for-sale: Fixed maturity securities $ 952,572 $ 952,572 $ 899,660 $ 899,660 Equity securities 92,692 92,692 74,111 74,111 Trading: Fixed maturity securities 5,064 5,064 5,046 5,046 Bank loan participations held-for-investment 205,957 198,905 191,700 180,086 Cash and cash equivalents 80,654 80,654 106,406 106,406 Short-term investments 14,906 14,906 19,270 19,270 Other invested assets – notes receivable 4,500 6,169 11,000 12,548 Liabilities Senior debt 88,300 84,763 88,300 79,539 Junior subordinated debt 104,055 98,796 104,055 84,594 The fair values of fixed maturity securities and equity securities have been determined using quoted market prices for securities traded in the public market or prices using bid or closing prices for securities not traded in the public marketplace. The fair values of cash and cash equivalents and short-term investments approximate their carrying values due to their short-term maturity. The fair values of other invested assets-notes receivable, senior debt, and junior subordinated debt at June 30, 2016 and December 31, 2015 were determined by calculating the present value of expected future cash flows under the terms of the note agreements or debt agreements, as applicable, discounted at an estimated market rate of interest at June 30, 2016 and December 31, 2015, respectively. For notes receivable maturing within one year, carrying value was used to approximate fair value. The fair values of bank loan participations held-for-investment, senior debt, and junior subordinated debt at June 30, 2016 and December 31, 2015 were determined using inputs to the valuation methodology that are unobservable (Level 3). |
Capital Stock and Equity Awards
Capital Stock and Equity Awards | 6 Months Ended |
Jun. 30, 2016 | |
Stockholders' Equity Note [Abstract] | |
Capital Stock and Equity Awards | 11. Capital Stock and Equity Awards The Company issued 149,949 common shares in the first six months of 2016 related to stock option exercises, increasing the number of common shares outstanding to 29,091,496 at June 30, 2016. The Company declared the following dividends during the first six months of 2016 and 2015: Payable to Dividend per Shareholders of Date of Declaration Common Share Record on Payment Date Total Amount 2016 February 16, 2016 $ 0.20 March 14, 2016 March 28, 2016 $ 5.8 million May 3, 2016 $ 0.20 June 13, 2016 June 30, 2016 $ 5.9 million $ 0.40 $ 11.7 million 2015 February 17, 2015 $ 0.16 March 16, 2015 March 31, 2015 $ 4.6 million May 5, 2015 $ 0.16 June 15, 2015 June 30, 2015 $ 4.6 million $ 0.32 $ 9.2 million Equity Incentive Plans The Company’s shareholders have approved various equity incentive plans, including the Amended and Restated 2009 Equity Incentive Plan (the “Legacy Plan”), the 2014 Long Term Incentive Plan (“2014 LTIP”), and the 2014 Non-Employee Director Incentive Plan (“2014 Director Plan”) (collectively, the “Plans”). All awards issued under the Plans are issued at the discretion of the Board of Directors. Under the Legacy Plan, employees received non-qualified stock options. Options are outstanding under the Legacy Plan; however, no additional awards may be granted. Employees are eligible to receive non-qualified stock options, incentive stock options, share appreciation rights, performance shares, restricted shares, restricted share units (“RSUs”), and other awards under the 2014 LTIP. The maximum number of shares available for issuance under the 2014 LTIP is 3,171,150, and at June 30, 2016, 1,086,657 shares are available for grant. Non-employee directors of the Company are eligible to receive non-qualified stock options, share appreciation rights, performance shares, restricted shares, restricted share units, and other awards under the 2014 Director Plan. The maximum number of shares available for issuance under the 2014 Director Plan is 50,000, and at June 30, 2016, 36,552 shares are available for grant. All options issued under the Legacy Plan vest in the event of a change in control. Generally, awards issued under the 2014 LTIP and 2014 Director Plan vest immediately in the event that an award recipient is terminated without Cause (as defined), and in the case of the 2014 LTIP for Good Reason (as defined), during the 12-month period following a Change in Control (as defined). On February 16, 2016, the Board of Directors granted awards under the 2014 LTIP and 2014 Director Plan to the Company’s employees and directors. Non-qualified stock options for 706,203 shares were granted with an exercise price of $32.07 per share and a three year vesting period. RSUs for 58,663 shares were also awarded with a fair value on the date of grant of $32.07 per share. The RSUs vest over one to three year periods, depending on the award. On May 3, 2016, the Board of Directors granted RSU awards for 1,628 shares under the 2014 Director Plan. The RSUs vest over one year and the fair value on the date of grant was $30.69 per share. Options The following table summarizes the option activity: Six Months Ended June 30, 2016 2015 Shares Weighted- Shares Weighted- Outstanding: Beginning of period 2,058,085 $ 18.11 3,104,768 $ 17.27 Granted 706,203 $ 32.07 10,627 $ 24.32 Exercised (231,916 ) $ 15.95 (41,250 ) $ 15.65 Forfeited (3,362 ) $ 21.00 (9,810 ) $ 21.00 End of period 2,529,010 $ 22.20 3,064,335 $ 17.30 Exercisable, end of period 1,017,643 $ 17.01 1,763,124 $ 15.48 RSUs The following table summarizes the RSU activity for the six months ended June 30, 2016 and 2015: Shares Weighted-Average June 30, 2016 Unvested, beginning of period 234,922 $ 21.00 Granted 60,291 $ 32.03 Unvested, end of period 295,213 $ 23.25 June 30, 2015 Unvested, beginning of period 340,474 $ 21.00 Granted – $ – Unvested, end of period 340,474 $ 21.00 Compensation Expense Share based compensation expense is recognized on a straight line basis over the vesting period. The amount of expense and related tax benefit is summarized below: Three Months Ended Six Months Ended 2016 2015 2016 2015 (in thousands) Share based compensation expense $ 1,498 $ 943 $ 2,687 $ 1,854 U.S. tax benefit on share based compensation expense 421 257 757 505 As of June 30, 2016, the Company had $10.2 million of unrecognized share based compensation expense expected to be charged to earnings over a weighted-average period of 2.1 years. The weighted-average remaining contractual life of the options outstanding and options exercisable was 4.8 years and 3.4 years, respectively. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | 12. Subsequent Events On August 3, 2016, the Board of Directors declared a cash dividend of $0.20 per common share. The dividend is payable on September 30, 2016 to shareholders of record on September 12, 2016. |
Accounting Policies (Policies)
Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying condensed consolidated financial statements and notes have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and do not contain all of the information and footnotes required by U.S. GAAP for complete financial statements. The condensed consolidated financial statements include the accounts and operations of the Company and its subsidiaries. Readers are encouraged to review the Company’s Annual Report on Form 10-K for the year ended December 31, 2015 for a more complete description of the Company’s business and accounting policies. In the opinion of management, all adjustments necessary for a fair presentation of the condensed consolidated financial statements have been included. Such adjustments consist only of normal recurring items. Interim results are not necessarily indicative of results of operations for the full year. The consolidated balance sheet as of December 31, 2015 was derived from the Company’s audited annual consolidated financial statements. Significant intercompany transactions and balances have been eliminated. |
Estimates and Assumptions | Estimates and Assumptions Preparation of the condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying disclosures. Those estimates are inherently subject to change, and actual results may ultimately differ from those estimates. |
Variable Interest Entities | Variable Interest Entities Entities that do not have sufficient equity at risk to allow the entity to finance its activities without additional financial support or in which the equity investors, as a group, do not have the characteristic of a controlling financial interest are referred to as variable interest entities (“VIE”). A VIE is consolidated by the variable interest holder that is determined to have the controlling financial interest (primary beneficiary) as a result of having both (1) the power to direct the activities of a VIE that most significantly impact the VIE’s economic performance and (2) the obligation to absorb losses or right to receive benefits from the VIE that could potentially be significant to the VIE. The Company determines whether it is the primary beneficiary of an entity subject to consolidation based on a qualitative assessment of the VIE’s capital structure, contractual terms, nature of the VIE’s operations and purpose, and the Company’s relative exposure to the related risks of the VIE on the date it becomes initially involved in the VIE. The Company reassesses its VIE determination with respect to an entity on an ongoing basis. The Company holds interests in VIEs through certain equity method investments in limited liability companies (“LLCs”) included in “other invested assets” in the accompanying condensed consolidated balance sheets. The Company has determined that it should not consolidate any of the VIEs as it is not the primary beneficiary in any of the relationships. Although the investments resulted in the Company holding variable interests in the entities, they did not empower the Company to direct the activities that most significantly impact the economic performance of the entities. The Company’s investments related to these VIEs totaled $23.8 million and $26.0 million as of June 30, 2016 and December 31, 2015, respectively, representing the Company’s maximum exposure to loss. |
Prospective Accounting Standards | Prospective Accounting Standards In May 2014, the FASB issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers (Topic 606) In May 2015, the FASB issued ASU 2015-09, Insurance (Topic 944), Disclosures about Short-Duration Contracts In January 2016, the FASB issued ASU 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) In March 2016, the FASB issued ASU 2016-09, Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting ASU also removes the requirement to delay recognition of a tax benefit until it reduces current taxes payable. This change is required to be applied on a modified retrospective basis, with a cumulative-effect adjustment to opening retained earnings. Additionally, all tax related cash flows resulting from share-based payments are to be reported as operating activities on the statement of cash flows, a change from the current requirement to present tax benefits as an inflow from financing activities and an outflow from operating activities. This ASU is effective for fiscal years beginning after December 15, 2016, and early adoption is permitted. The Company is currently evaluating ASU 2016-09 to determine the potential impact that adopting the standard will have on its consolidated financial statements. In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. |
Investments (Tables)
Investments (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Investments [Abstract] | |
Schedule of summary of available-for-sale investments | Cost or Gross Gross Fair (in thousands) June 30, 2016 Fixed maturity securities: State and municipal $ 93,311 $ 9,742 $ (3 ) $ 103,050 Residential mortgage-backed 164,910 3,055 (187 ) 167,778 Corporate 377,232 16,271 (4,124 ) 389,379 Commercial mortgage and asset-backed 136,001 2,614 (99 ) 138,516 Obligations of U.S. government corporations and agencies 78,215 685 – 78,900 U.S. Treasury securities and obligations guaranteed by the U.S. government 72,012 898 – 72,910 Redeemable preferred stock 2,025 14 2,039 Total fixed maturity securities 923,706 33,279 (4,413 ) 952,572 Equity securities 84,005 10,533 (1,846 ) 92,692 Total investments available-for-sale $ 1,007,711 $ 43,812 $ (6,259 ) $ 1,045,264 December 31, 2015 Fixed maturity securities: State and municipal $ 95,864 $ 7,728 $ (135 ) $ 103,457 Residential mortgage-backed 137,308 1,718 (2,139 ) 136,887 Corporate 368,961 3,988 (9,781 ) 363,168 Commercial mortgage and asset-backed 130,231 890 (425 ) 130,696 Obligations of U.S. government corporations and agencies 89,734 698 (269 ) 90,163 U.S. Treasury securities and obligations guaranteed by the U.S. government 73,322 165 (232 ) 73,255 Redeemable preferred stock 2,025 9 – 2,034 Total fixed maturity securities 897,445 15,196 (12,981 ) 899,660 Equity securities 69,830 5,512 (1,231 ) 74,111 Total investments available-for-sale $ 967,275 $ 20,708 $ (14,212 ) $ 973,771 |
Schedule of summary of available-for-sale investments by contractual maturity | Cost or Fair (in thousands) One year or less $ 55,893 $ 56,053 After one year through five years 288,962 292,639 After five years through ten years 158,539 166,278 After ten years 117,376 129,269 Residential mortgage-backed 164,910 167,778 Commercial mortgage and asset-backed 136,001 138,516 Redeemable preferred stock 2,025 2,039 Total $ 923,706 $ 952,572 |
Schedule of gross unrealized losses and fair value for available-for-sale securities | Less Than 12 Months 12 Months or More Total Fair Gross Fair Gross Fair Gross (in thousands) June 30, 2016 Fixed maturity securities: State and municipal $ 752 $ (3 ) $ – $ – $ 752 $ (3 ) Residential mortgage-backed – – 37,984 (187 ) 37,984 (187 ) Corporate 145 – 11,149 (4,124 ) 11,294 (4,124 ) Commercial mortgage and asset-backed 27,932 (42 ) 6,187 (57 ) 34,119 (99 ) Total fixed maturity securities 28,829 (45 ) 55,320 (4,368 ) 84,149 (4,413 ) Equity securities 4,488 (600 ) 5,897 (1,246 ) 10,385 (1,846 ) Total investments available-for-sale $ 33,317 $ (645 ) $ 61,217 $ (5,614 ) $ 94,534 $ (6,259 ) Less Than 12 Months 12 Months or More Total Fair Gross Fair Gross Fair Gross (in thousands) December 31, 2015 Fixed maturity securities: State and municipal $ 9,492 $ (135 ) $ – $ – $ 9,492 $ (135 ) Residential mortgage-backed 39,895 (465 ) 40,656 (1,674 ) 80,551 (2,139 ) Corporate 177,149 (5,281 ) 6,433 (4,500 ) 183,582 (9,781 ) Commercial mortgage and asset-backed 74,518 (339 ) 11,437 (86 ) 85,955 (425 ) Obligations of U.S. government corporations and agencies 43,907 (231 ) 4,012 (38 ) 47,919 (269 ) U.S. Treasury securities and obligations guaranteed by the U.S. government 49,452 (213 ) 2,186 (19 ) 51,638 (232 ) Total fixed maturity securities 394,413 (6,664 ) 64,724 (6,317 ) 459,137 (12,981 ) Equity securities 4,196 (172 ) 5,704 (1,059 ) 9,900 (1,231 ) Total investments available-for-sale $ 398,609 $ (6,836 ) $ 70,428 $ (7,376 ) $ 469,037 $ (14,212 ) |
Schedule of summary of realized gains and losses | Three Months Ended Six Months Ended 2016 2015 2016 2015 (in thousands) Fixed maturity securities: Gross realized gains $ 568 $ 101 $ 1,410 $ 1,288 Gross realized losses (1 ) (5 ) (2 ) (665 ) 567 96 1,408 623 Bank loan participations: Gross realized gains 1,133 242 1,193 532 Gross realized losses (81 ) (12 ) (433 ) (3,654 ) 1,052 230 760 (3,122 ) Short-term investments and other: Gross realized gains 1 24 1 47 Gross realized losses (1 ) – (3 ) (4 ) – 24 (2 ) 43 Total $ 1,619 $ 350 $ 2,166 $ (2,456 ) |
Schedule of other invested assets | Investment Income Carrying Value Three Months Ended Six Months Ended June 30, December 31, June 30, June 30, 2016 2015 2016 2015 2016 2015 (in thousands) Category Renewable energy LLCs (a) $ 23,777 $ 26,001 $ (1,451 ) $ 2,163 $ (769 ) $ 4,615 Renewable energy bridge financing notes (b) – 6,500 207 874 450 1,499 Limited partnerships (c) 19,755 17,503 1,680 85 1,836 (74 ) Bank holding companies (d) 4,500 4,500 86 86 172 172 Total other invested assets $ 48,032 $ 54,504 $ 522 $ 3,208 $ 1,689 $ 6,212 (a) The Company’s Corporate and Other segment owns equity interests ranging from 2.7% to 33.3% in various LLCs whose principal objective is capital appreciation and income generation from owning and operating renewable energy production facilities (wind and solar). The LLCs are managed by an affiliate of the Company’s largest shareholder and the Company’s Chairman and Chief Executive Officer has invested in certain of these LLCs. The equity method is used to account for the Company’s LLC investments. (b) The Company has held investments in bridge loans for renewable energy projects. The notes, all with affiliates of the Company’s largest shareholder, generally matured in less than one year and carried primarily variable rates of interest ranging from 7.3% to 15.0%. O (c) The Company owns investments in limited partnerships that invest in concentrated portfolios of high yield bonds of companies undergoing financial stress, publicly-traded small cap equities, loans of middle market private equity sponsored companies, and Income from the partnerships is recognized under the equity method of accounting. The Company’s Corporate and Other segment held investments in limited partnerships of $2.4 million at June 30, 2016 and recognized investment income of $235,000 and investment losses of $74,000 for the six months ended June 30, 2016 and 2015, respectively. The Chairman and Chief Executive Officer of the Company is an investor in one limited partnership held by the Corporate and Other segment. The Company’s Excess and Surplus Lines segment holds investments in limited partnerships of $17.4 million at June 30, 2016. Investment income of $1.6 million was recognized on the investments for the six months ended June 30, 2016. At June 30, 2016 the Company’s Excess and Surplus lines segment has an outstanding commitment to invest another $2.6 million in a limited partnership that invests in loans of middle market private equity sponsored companies. (d) The Company holds $4.5 million of subordinated notes issued by a bank holding company. Interest on the notes, which mature on August 12, 2023, is fixed at 7.6% per annum. Interest income on the notes was $172,000 in both six months ended June 30, 2016 and 2015. The Company’s Chairman and Chief Executive Officer is the Lead Independent Director of the bank holding company and is an investor in the bank holding company. Additionally, one of the Company’s directors is an investor in the bank holding company and a lender to the bank holding company. The Company’s Chief Financial Officer is a former investor in the bank holding company. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of gross carrying amounts and accumulated amortization | June 30, 2016 December 31, 2015 Life (Years) Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization ($ in thousands) Intangible Assets Trademarks Indefinite $ 22,200 $ – $ 22,200 $ – Insurance licenses and authorities Indefinite 9,164 – 9,164 – Identifiable intangibles not subject to amortization 31,364 – 31,364 – Broker relationships 24.6 11,611 3,745 11,611 3,447 Identifiable intangible assets subject to amortization 11,611 3,745 11,611 3,447 $ 42,975 $ 3,745 $ 42,975 $ 3,447 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of reconciliation of numerator and denominator of basic and diluted earnings per share | Three Months Ended Six Months Ended 2016 2015 2016 2015 (in thousands, except share and per share amounts) Net income to shareholders $ 14,596 $ 12,489 $ 27,433 $ 21,866 Weighted average common shares outstanding: Basic 29,035,512 28,547,616 28,994,260 28,544,003 Common share equivalents 790,402 667,243 789,823 612,601 Diluted 29,825,914 29,214,859 29,784,083 29,156,604 Earnings per share: Basic $ 0.50 $ 0.44 $ 0.95 $ 0.77 Common share equivalents (0.01 ) (0.01 ) (0.03 ) (0.02 ) Diluted $ 0.49 $ 0.43 $ 0.92 $ 0.75 |
Reserve for Losses and Loss A24
Reserve for Losses and Loss Adjustment Expenses (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Liability for Claims and Claims Adjustment Expense [Abstract] | |
Schedule of reconciliation of beginning and ending reserve balances for losses and loss adjustment expenses | Three Months Ended Six Months Ended 2016 2015 2016 2015 (in thousands) Reserve for losses and loss adjustment expenses net of reinsurance recoverables at beginning of period $ 672,588 $ 614,969 $ 653,534 $ 589,042 Add: Incurred losses and loss adjustment expenses net of reinsurance: Current year 81,407 70,449 159,580 147,422 Prior years (4,748 ) (2,518 ) (9,415 ) (5,007 ) Total incurred losses and loss and adjustment expenses 76,659 67,931 150,165 142,415 Deduct: Loss and loss adjustment expense payments net of reinsurance: Current year 8,946 9,601 10,890 14,603 Prior years 50,670 45,795 103,178 89,350 Total loss and loss adjustment expense payments 59,616 55,396 114,068 103,953 Reserve for losses and loss adjustment expenses net of reinsurance recoverables at end of period 689,631 627,504 689,631 627,504 Add: Reinsurance recoverables on unpaid losses and loss adjustment expenses at end of period 153,706 134,750 153,706 134,750 Reserve for losses and loss adjustment expenses gross of reinsurance recoverables on unpaid losses and loss adjustment expenses at end of period $ 843,337 $ 762,254 $ 843,337 $ 762,254 |
Other Comprehensive Income (Tab
Other Comprehensive Income (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of components of comprehensive income | Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 (in thousands) Unrealized gains (losses) arising during the period, before U.S. income taxes $ 15,346 $ (16,788 ) $ 32,464 $ (11,577 ) U.S. income taxes (2,147 ) 1,871 (3,077 ) 1,330 Unrealized gains (losses) arising during the period, net of U.S. income taxes 13,199 (14,917 ) 29,387 (10,247 ) Less reclassification adjustment: Net realized investment gains 567 96 1,408 623 U.S. income tax (expense) benefit (160 ) (8 ) (433 ) 186 Reclassification adjustment for investment gains realized in net income 407 88 975 809 Other comprehensive income (loss) $ 12,792 $ (15,005 ) $ 28,412 $ (11,056 ) |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Segment Reporting [Abstract] | |
Schedule of summary of company's segment results | Excess and Specialty Casualty Corporate Total (in thousands) Three Months Ended June 30, 2016 Gross written premiums $ 97,427 $ 34,201 $ 39,043 $ ‒ $ 170,671 Net earned premiums 70,565 12,207 35,783 ‒ 118,555 Underwriting profit of insurance segments 9,783 125 206 ‒ 10,114 Net investment income (loss) 5,079 640 6,936 (1,102 ) 11,553 Interest expense ‒ ‒ ‒ 2,041 2,041 Segment revenues 78,940 13,329 43,304 (1,062 ) 134,511 Segment goodwill 181,831 ‒ ‒ ‒ 181,831 Segment assets 731,324 215,034 1,148,489 95,014 2,189,861 Excess and Specialty Casualty Corporate Total (in thousands) Three Months Ended June 30, 2015 Gross written premiums $ 77,417 $ 17,931 $ 88,663 $ – $ 184,011 Net earned premiums 52,867 10,150 43,043 – 106,060 Underwriting profit of insurance segments 5,769 199 594 – 6,562 Net investment income 3,706 583 5,656 3,055 13,000 Interest expense – – – 1,744 1,744 Segment revenues 57,531 10,760 48,845 3,091 120,227 Segment goodwill 181,831 – – – 181,831 Segment assets 712,047 140,654 1,098,508 111,503 2,062,712 Six Months Ended June 30, 2016 Gross written premiums $ 179,535 $ 62,888 $ 61,319 $ ‒ $ 303,742 Net earned premiums 136,070 23,612 76,003 ‒ 235,685 Underwriting profit of insurance segments 18,987 600 540 ‒ 20,127 Net investment income 8,365 1,251 13,163 46 22,825 Interest expense ‒ ‒ ‒ 4,215 4,215 Segment revenues 150,730 25,376 89,612 122 265,840 Segment goodwill 181,831 ‒ ‒ ‒ 181,831 Segment assets 731,324 215,034 1,148,489 95,014 2,189,861 Six Months Ended June 30, 2015 Gross written premiums $ 153,135 $ 38,857 $ 123,277 $ – $ 315,269 Net earned premiums 112,267 19,705 91,099 – 223,071 Underwriting profit of insurance segments 13,212 44 635 – 13,891 Net investment income 7,072 1,102 10,717 6,095 24,986 Interest expense – – – 3,448 3,448 Segment revenues 118,569 20,962 100,997 6,166 246,694 Segment goodwill 181,831 – – – 181,831 Segment assets 712,047 140,654 1,098,508 111,503 2,062,712 |
Schedule of underwriting profit (loss) of operating segments by individual segment and reconciliation to consolidated income before taxes | Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 (in thousands) Underwriting profit (loss) of the insurance segments: Excess and Surplus Lines $ 9,783 $ 5,769 $ 18,987 $ 13,212 Specialty Admitted Insurance 125 199 600 44 Casualty Reinsurance 206 594 540 635 Total underwriting profit of insurance segments 10,114 6,562 20,127 13,891 Other operating expenses of the Corporate and Other segment (5,475 ) (4,255 ) (10,727 ) (8,634 ) Underwriting profit 4,639 2,307 9,400 5,257 Net investment income 11,553 13,000 22,825 24,986 Net realized investment gains 1,619 350 2,166 (2,456 ) Amortization of intangible assets (149 ) (149 ) (298 ) (298 ) Other income and expenses (24 ) (10 ) 52 (23 ) Interest expense (2,041 ) (1,744 ) (4,215 ) (3,448 ) Income before taxes $ 15,597 $ 13,754 $ 29,930 $ 24,018 |
Other Operating Expenses and 27
Other Operating Expenses and Other Expenses (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Other Operating Expenses And Other Expenses [Abstract] | |
Schedule of Other operating expenses | Three Months Ended Six Months Ended 2016 2015 2016 2015 (in thousands) Amortization of policy acquisition costs $ 22,710 $ 22,400 $ 45,791 $ 46,902 Other underwriting expenses of the operating segments 11,789 9,925 24,635 20,841 Other operating expenses of the Corporate and Other segment 5,475 4,255 10,727 8,634 Total $ 39,974 $ 36,580 $ 81,153 $ 76,377 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Schedule of assets measured at fair value on a recurring basis | Assets measured at fair value on a recurring basis as of June 30, 2016 are summarized below: Fair Value Measurements Using Quoted Prices Significant Significant Level 1 Level 2 Level 3 Total (in thousands) Available-for-sale securities: Fixed maturity securities: State and municipal $ ‒ $ 103,050 $ ‒ $ 103,050 Residential mortgage-backed ‒ 167,778 ‒ 167,778 Corporate ‒ 389,379 ‒ 389,379 Commercial mortgage and asset-backed ‒ 133,516 5,000 138,516 Obligations of U.S. government corporations and agencies ‒ 78,900 ‒ 78,900 U.S. Treasury securities and obligations guaranteed by the U.S. government 72,189 721 ‒ 72,910 Redeemable preferred stock ‒ 2,039 ‒ 2,039 Total fixed maturity securities 72,189 875,383 5,000 952,572 Equity securities: Preferred stock ‒ 69,052 ‒ 69,052 Common stock 22,906 734 ‒ 23,640 Total equity securities 22,906 69,786 ‒ 92,692 Total available-for-sale securities $ 95,095 $ 945,169 $ 5,000 $ 1,045,264 Trading securities: Fixed maturity securities $ ‒ $ 5,064 $ ‒ $ 5,064 Short-term investments $ 1,100 $ 13,806 $ ‒ $ 14,906 Assets measured at fair value on a recurring basis as of December 31, 2015 are summarized below: Fair Value Measurements Using Quoted Prices Significant Significant Level 1 Level 2 Level 3 Total (in thousands) Available-for-sale securities: Fixed maturity securities: State and municipal $ – $ 103,457 $ – $ 103,457 Residential mortgage-backed – 136,887 – 136,887 Corporate – 363,168 – 363,168 Commercial mortgage and asset-backed – 125,696 5,000 130,696 Obligations of U.S. government corporations and agencies – 90,163 – 90,163 U.S. Treasury securities and obligations guaranteed by the U.S. government 72,542 713 – 73,255 Redeemable preferred stock – 2,034 – 2,034 Total fixed maturity securities 72,542 822,118 5,000 899,660 Equity securities: Preferred stock – 54,092 – 54,092 Common stock 19,285 734 – 20,019 Total equity securities 19,285 54,826 – 74,111 Total available-for-sale securities $ 91,827 $ 876,944 $ 5,000 $ 973,771 Trading securities: Fixed maturity securities $ 1,244 $ 3,802 $ – $ 5,046 Short-term investments $ 2,926 $ 16,344 $ – $ 19,270 |
Schedule of assets measured at fair value on a nonrecurring basis | Fair Value Measurements Using Quoted Prices In Active Markets for Identical Assets Level 1 Significant Other Observable Inputs Level 2 Significant Unobservable Inputs Level 3 Total (in thousands) June 30, 2016 Bank loan participations held-for-investment $ – $ – $ 2,745 $ 2,745 December 31, 2015 Bank loan participations held-for-investment $ – $ – $ 2,342 $ 2,342 |
Schedule of carrying value and fair Value | June 30, 2016 December 31, 2015 Carrying Fair Value Carrying Fair Value (in thousands) Assets Available-for-sale: Fixed maturity securities $ 952,572 $ 952,572 $ 899,660 $ 899,660 Equity securities 92,692 92,692 74,111 74,111 Trading: Fixed maturity securities 5,064 5,064 5,046 5,046 Bank loan participations held-for-investment 205,957 198,905 191,700 180,086 Cash and cash equivalents 80,654 80,654 106,406 106,406 Short-term investments 14,906 14,906 19,270 19,270 Other invested assets – notes receivable 4,500 6,169 11,000 12,548 Liabilities Senior debt 88,300 84,763 88,300 79,539 Junior subordinated debt 104,055 98,796 104,055 84,594 |
Capital Stock and Equity Awar29
Capital Stock and Equity Awards (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Stockholders' Equity Note [Abstract] | |
Schedule of summary of dividends declared | Payable to Dividend per Shareholders of Date of Declaration Common Share Record on Payment Date Total Amount 2016 February 16, 2016 $ 0.20 March 14, 2016 March 28, 2016 $ 5.8 million May 3, 2016 $ 0.20 June 13, 2016 June 30, 2016 $ 5.9 million $ 0.40 $ 11.7 million 2015 February 17, 2015 $ 0.16 March 16, 2015 March 31, 2015 $ 4.6 million May 5, 2015 $ 0.16 June 15, 2015 June 30, 2015 $ 4.6 million $ 0.32 $ 9.2 million |
Schedule of summary of option activity | Six Months Ended June 30, 2016 2015 Shares Weighted- Shares Weighted- Outstanding: Beginning of period 2,058,085 $ 18.11 3,104,768 $ 17.27 Granted 706,203 $ 32.07 10,627 $ 24.32 Exercised (231,916 ) $ 15.95 (41,250 ) $ 15.65 Forfeited (3,362 ) $ 21.00 (9,810 ) $ 21.00 End of period 2,529,010 $ 22.20 3,064,335 $ 17.30 Exercisable, end of period 1,017,643 $ 17.01 1,763,124 $ 15.48 |
Schedule of summary of RSU activity | Shares Weighted-Average June 30, 2016 Unvested, beginning of period 234,922 $ 21.00 Granted 60,291 $ 32.03 Unvested, end of period 295,213 $ 23.25 June 30, 2015 Unvested, beginning of period 340,474 $ 21.00 Granted – $ – Unvested, end of period 340,474 $ 21.00 |
Schedule of summary of amount of expense and related tax benefit | Three Months Ended Six Months Ended 2016 2015 2016 2015 (in thousands) Share based compensation expense $ 1,498 $ 943 $ 2,687 $ 1,854 U.S. tax benefit on share based compensation expense 421 257 757 505 |
Accounting Policies (Detail Tex
Accounting Policies (Detail Textuals) $ in Millions | Jun. 30, 2016USD ($)Company | Dec. 31, 2015USD ($) |
Accounting Policies [Abstract] | ||
Number of insurance companies based in the United States | Company | 6 | |
Investment in variable interest entities | $ | $ 23.8 | $ 26 |
Investments (Details)
Investments (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Amortized Cost | $ 1,007,711 | $ 967,275 |
Gross Unrealized Gains | 43,812 | 20,708 |
Gross Unrealized Losses | (6,259) | (14,212) |
Fair value | 1,045,264 | 973,771 |
Fixed maturity securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Amortized Cost | 923,706 | 897,445 |
Gross Unrealized Gains | 33,279 | 15,196 |
Gross Unrealized Losses | (4,413) | (12,981) |
Fair value | 952,572 | 899,660 |
State and municipal | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Amortized Cost | 93,311 | 95,864 |
Gross Unrealized Gains | 9,742 | 7,728 |
Gross Unrealized Losses | (3) | (135) |
Fair value | 103,050 | 103,457 |
Residential mortgage-backed | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Amortized Cost | 164,910 | 137,308 |
Gross Unrealized Gains | 3,055 | 1,718 |
Gross Unrealized Losses | (187) | (2,139) |
Fair value | 167,778 | 136,887 |
Corporate | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Amortized Cost | 377,232 | 368,961 |
Gross Unrealized Gains | 16,271 | 3,988 |
Gross Unrealized Losses | (4,124) | (9,781) |
Fair value | 389,379 | 363,168 |
Commercial mortgage and asset-backed | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Amortized Cost | 136,001 | 130,231 |
Gross Unrealized Gains | 2,614 | 890 |
Gross Unrealized Losses | (99) | (425) |
Fair value | 138,516 | 130,696 |
Obligations of U.S. government corporations and agencies | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Amortized Cost | 78,215 | 89,734 |
Gross Unrealized Gains | 685 | 698 |
Gross Unrealized Losses | (269) | |
Fair value | 78,900 | 90,163 |
U.S. Treasury securities and obligations guaranteed by the U.S. government | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Amortized Cost | 72,012 | 73,322 |
Gross Unrealized Gains | 898 | 165 |
Gross Unrealized Losses | (232) | |
Fair value | 72,910 | 73,255 |
Redeemable preferred stock | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Amortized Cost | 2,025 | 2,025 |
Gross Unrealized Gains | 14 | 9 |
Gross Unrealized Losses | ||
Fair value | 2,039 | 2,034 |
Equity securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or Amortized Cost | 84,005 | 69,830 |
Gross Unrealized Gains | 10,533 | 5,512 |
Gross Unrealized Losses | (1,846) | (1,231) |
Fair value | $ 92,692 | $ 74,111 |
Investments (Details 1)
Investments (Details 1) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Cost or Amortized Cost | ||
One year or less | $ 55,893 | |
After one year through five years | 288,962 | |
After five years through ten years | 158,539 | |
After ten years | 117,376 | |
Residential mortgage-backed | 164,910 | |
Commercial mortgage and asset-backed | 136,001 | |
Redeemable preferred stock | 2,025 | |
Total, Cost or Amortized Cost | 923,706 | $ 897,445 |
Fair Value | ||
One year or less | 56,053 | |
After one year through five years | 292,639 | |
After five years through ten years | 166,278 | |
After ten years | 129,269 | |
Residential mortgage-backed | 167,778 | |
Commercial mortgage and asset-backed | 138,516 | |
Redeemable preferred stock | 2,039 | |
Total, Fair Value | $ 952,572 | $ 899,660 |
Investments (Details 2)
Investments (Details 2) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Schedule of Available-for-sale Securities [Line Items] | ||
Less Than 12 Months Fair Value | $ 33,317 | $ 398,609 |
Less Than 12 Months Gross Unrealized Losses | (645) | (6,836) |
12 Months or More Fair Value | 61,217 | 70,428 |
12 Months or More Gross Unrealized Losses | (5,614) | (7,376) |
Total Fair Value | 94,534 | 469,037 |
Total Gross Unrealized Losses | (6,259) | (14,212) |
Fixed maturity securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less Than 12 Months Fair Value | 28,829 | 394,413 |
Less Than 12 Months Gross Unrealized Losses | (45) | (6,664) |
12 Months or More Fair Value | 55,320 | 64,724 |
12 Months or More Gross Unrealized Losses | (4,368) | (6,317) |
Total Fair Value | 84,149 | 459,137 |
Total Gross Unrealized Losses | (4,413) | (12,981) |
State and municipal | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less Than 12 Months Fair Value | 752 | 9,492 |
Less Than 12 Months Gross Unrealized Losses | (3) | (135) |
12 Months or More Fair Value | ||
12 Months or More Gross Unrealized Losses | ||
Total Fair Value | 752 | 9,492 |
Total Gross Unrealized Losses | (3) | (135) |
Residential mortgage-backed | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less Than 12 Months Fair Value | 39,895 | |
Less Than 12 Months Gross Unrealized Losses | (465) | |
12 Months or More Fair Value | 37,984 | 40,656 |
12 Months or More Gross Unrealized Losses | (187) | (1,674) |
Total Fair Value | 37,984 | 80,551 |
Total Gross Unrealized Losses | (187) | (2,139) |
Corporate | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less Than 12 Months Fair Value | 145 | 177,149 |
Less Than 12 Months Gross Unrealized Losses | (5,281) | |
12 Months or More Fair Value | 11,149 | 6,433 |
12 Months or More Gross Unrealized Losses | (4,124) | (4,500) |
Total Fair Value | 11,294 | 183,582 |
Total Gross Unrealized Losses | (4,124) | (9,781) |
Commercial mortgage and asset-backed | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less Than 12 Months Fair Value | 27,932 | 74,518 |
Less Than 12 Months Gross Unrealized Losses | (42) | (339) |
12 Months or More Fair Value | 6,187 | 11,437 |
12 Months or More Gross Unrealized Losses | (57) | (86) |
Total Fair Value | 34,119 | 85,955 |
Total Gross Unrealized Losses | (99) | (425) |
Obligations of U.S. government corporations and agencies | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less Than 12 Months Fair Value | 43,907 | |
Less Than 12 Months Gross Unrealized Losses | (231) | |
12 Months or More Fair Value | 4,012 | |
12 Months or More Gross Unrealized Losses | (38) | |
Total Fair Value | 47,919 | |
Total Gross Unrealized Losses | (269) | |
U.S. Treasury securities and obligations guaranteed by the U.S. government | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less Than 12 Months Fair Value | 49,452 | |
Less Than 12 Months Gross Unrealized Losses | (213) | |
12 Months or More Fair Value | 2,186 | |
12 Months or More Gross Unrealized Losses | (19) | |
Total Fair Value | 51,638 | |
Total Gross Unrealized Losses | (232) | |
Equity securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less Than 12 Months Fair Value | 4,488 | 4,196 |
Less Than 12 Months Gross Unrealized Losses | (600) | (172) |
12 Months or More Fair Value | 5,897 | 5,704 |
12 Months or More Gross Unrealized Losses | (1,246) | (1,059) |
Total Fair Value | 10,385 | 9,900 |
Total Gross Unrealized Losses | $ (1,846) | $ (1,231) |
Investments (Details 3)
Investments (Details 3) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Schedule of Available-for-sale Securities [Line Items] | ||||
Total | $ 1,619 | $ 350 | $ 2,166 | $ (2,456) |
Fixed maturity securities | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Gross realized gains | 568 | 101 | 1,410 | 1,288 |
Gross realized losses | (1) | (5) | (2) | (665) |
Total | 567 | 96 | 1,408 | 623 |
Bank loan participations: | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Gross realized gains | 1,133 | 242 | 1,193 | 532 |
Gross realized losses | (81) | (12) | (433) | (3,654) |
Total | 1,052 | 230 | 760 | (3,122) |
Short-term investments and other | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Gross realized gains | 1 | 24 | 1 | 47 |
Gross realized losses | (1) | (3) | (4) | |
Total | $ 24 | $ (2) | $ 43 |
Investments (Details 4)
Investments (Details 4) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | ||
Net Investment Income [Line Items] | ||||||
Total other invested assets | $ 48,032 | $ 48,032 | $ 54,504 | |||
Investment Income (Loss) | 522 | $ 3,208 | 1,689 | $ 6,212 | ||
Renewable energy LLCs | ||||||
Net Investment Income [Line Items] | ||||||
Total other invested assets | [1] | 23,777 | 23,777 | 26,001 | ||
Investment Income (Loss) | [1] | (1,451) | 2,163 | (769) | 4,615 | |
Renewable energy bridge financing notes | ||||||
Net Investment Income [Line Items] | ||||||
Total other invested assets | [2] | 6,500 | ||||
Investment Income (Loss) | [2] | 207 | 874 | 450 | 1,499 | |
Limited partnerships | ||||||
Net Investment Income [Line Items] | ||||||
Total other invested assets | [3] | 19,755 | 19,755 | 17,503 | ||
Investment Income (Loss) | [3] | 1,680 | 85 | 1,836 | (74) | |
Bank holding companies | ||||||
Net Investment Income [Line Items] | ||||||
Total other invested assets | [4] | 4,500 | 4,500 | $ 4,500 | ||
Investment Income (Loss) | [4] | $ 86 | $ 86 | $ 172 | $ 172 | |
[1] | The Company's Corporate and Other segment owns equity interests ranging from 2.7% to 33.3% in various LLCs whose principal objective is capital appreciation and income generation from owning and operating renewable energy production facilities (wind and solar). The LLCs are managed by an affiliate of the Company's largest shareholder and the Company's Chairman and Chief Executive Officer has invested in certain of these LLCs. The equity method is used to account for the Company's LLC investments. Income for the LLCs primarily reflects adjustments to the carrying values of investments in renewable energy projects to their determined fair values. The fair value adjustments are included in revenues for the LLCs. Expenses for the LLCs are not significant and are comprised of administrative and interest expenses. The Company received cash distributions from these investments totaling $1.5 million and $951,000 in the six months ended June 30, 2016 and 2015, respectively. | |||||
[2] | The Company has held investments in bridge loans for renewable energy projects. The notes, all with affiliates of the Company's largest shareholder, generally matured in less than one year and carried primarily variable rates of interest ranging from 7.3% to 15.0%. Original discounts and commitment fees received were recognized over the terms of the notes under the effective interest method. During the six months ended June 30, 2016, the outstanding balance of a $6.5 million note was fully repaid. In the six months ended June 30, 2015, the Company invested $26.5 million in these notes and received repayments of $6.3 million. | |||||
[3] | The Company owns investments in limited partnerships that invest in concentrated portfolios of high yield bonds of companies undergoing financial stress, publicly-traded small cap equities, loans of middle market private equity sponsored companies, and equity tranches of collateralized loan obligations (CLOs). Income from the partnerships is recognized under the equity method of accounting. The Company's Corporate and Other segment held investments in limited partnerships of $2.4 million at June 30, 2016 and recognized investment income of $235,000 and investment losses of $74,000 for the six months ended June 30, 2016 and 2015, respectively. The Chairman and Chief Executive Officer of the Company is an investor in one limited partnership held by the Corporate and Other segment. The Company's Excess and Surplus Lines segment holds investments in limited partnerships of $17.4 million at June 30, 2016. Investment income of $1.6 million was recognized on the investments for the six months ended June 30, 2016. At June 30, 2016 the Company's Excess and Surplus lines segment has an outstanding commitment to invest another $2.6 million in a limited partnership that invests in loans of middle market private equity sponsored companies. | |||||
[4] | The Company holds $4.5 million of subordinated notes issued by a bank holding company. Interest on the notes, which mature on August 12, 2023, is fixed at 7.6% per annum. Interest income on the notes was $172,000 in both six months ended June 30, 2016 and 2015. The Company's Chairman and Chief Executive Officer is the Lead Independent Director of the bank holding company and is an investor in the bank holding company. Additionally, one of the Company's directors is an investor in the bank holding company and a lender to the bank holding company. The Company's Chief Financial Officer is a former investor in the bank holding company. |
Investments (Detail Textuals)
Investments (Detail Textuals) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2016USD ($)Issuer | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($)Bond | Jun. 30, 2016USD ($)IssuerBondLoan | Jun. 30, 2015USD ($) | Dec. 31, 2015USD ($)Loan | |
Gain (Loss) on Investments [Line Items] | ||||||
Number of available-for-sale securities held in an unrealized loss position | Issuer | 31 | 31 | ||||
Total fair value of unrealized loss position securities | $ 94,534,000 | $ 94,534,000 | $ 469,037,000 | |||
Total gross unrealized losses of unrealized loss position securities | 6,259,000 | 6,259,000 | 14,212,000 | |||
Fair value | 1,045,264,000 | 1,045,264,000 | 973,771,000 | |||
Gross unrealized losses | 6,259,000 | $ 6,259,000 | $ 14,212,000 | |||
Number of impaired loans held | Loan | 4 | 5 | ||||
Allowance for credit losses | $ 3,700,000 | $ 4,300,000 | ||||
Carrying value of impaired loans | 5,000,000 | 5,000,000 | 6,300,000 | |||
Carrying value of loan | 205,957,000 | 205,957,000 | 191,700,000 | |||
Unpaid principal on impaired loans | 9,100,000 | 9,100,000 | 11,100,000 | |||
Average recorded investment in impaired bank loans | 5,600,000 | $ 7,800,000 | ||||
Investment income during period loans were impaired | 170,000 | 153,000 | ||||
Net trading gains related to securities still held | 7,000 | 19,000 | ||||
Net trading gains | 7,000 | 19,000 | ||||
Net realized gain (loss) on changes in fair value of impaired bank loans | 913,000 | $ 175,000 | 610,000 | 203,000 | ||
Fixed maturity securities | ||||||
Gain (Loss) on Investments [Line Items] | ||||||
Total fair value of unrealized loss position securities | 84,149,000 | 84,149,000 | 459,137,000 | |||
Total gross unrealized losses of unrealized loss position securities | 4,413,000 | 4,413,000 | 12,981,000 | |||
Fair value | 952,572,000 | 952,572,000 | 899,660,000 | |||
Gross unrealized losses | 4,413,000 | 4,413,000 | $ 12,981,000 | |||
Realized gains | 568,000 | 101,000 | 1,410,000 | 1,288,000 | ||
Realized losses | 1,000 | 5,000 | $ 2,000 | $ 665,000 | ||
Puerto rico loan | ||||||
Gain (Loss) on Investments [Line Items] | ||||||
Number of Loan | Loan | 1 | 2 | ||||
Allowance for credit losses | $ 239,000 | $ 414,000 | ||||
Carrying value of impaired loans | 2,200,000 | 2,200,000 | 3,900,000 | |||
Unpaid principal on impaired loans | 2,600,000 | 2,600,000 | $ 4,600,000 | |||
Oil and gas companies loan | ||||||
Gain (Loss) on Investments [Line Items] | ||||||
Bank loan participations gross unrealized losses | $ 2,000,000 | |||||
Number of Loan | Loan | 6 | |||||
Number of bonds | Bond | 1 | |||||
Number of impaired loans held | Loan | 2 | 2 | ||||
Allowance for credit losses | $ 3,400,000 | $ 3,900,000 | ||||
Carrying value of impaired loans | 2,100,000 | 2,100,000 | 1,700,000 | |||
Carrying value of loan | 16,200,000 | 16,200,000 | ||||
Unpaid principal on impaired loans | 5,800,000 | $ 5,800,000 | $ 5,800,000 | |||
Non energy sector loan | ||||||
Gain (Loss) on Investments [Line Items] | ||||||
Number of impaired loans held | Loan | 1 | 1 | ||||
Allowance for credit losses | $ 115,000 | $ 34,000 | ||||
Carrying value of impaired loans | 603,000 | 603,000 | 689,000 | |||
Unpaid principal on impaired loans | $ 718,000 | $ 718,000 | $ 722,000 | |||
A- or better | Fixed maturity securities | ||||||
Gain (Loss) on Investments [Line Items] | ||||||
Percentage of available for sale securities | 86.30% | 86.30% | ||||
Ratings below investment grade | Fixed maturity securities | ||||||
Gain (Loss) on Investments [Line Items] | ||||||
Fair value | $ 11,100,000 | $ 11,100,000 | ||||
Gross unrealized losses | $ 3,400,000 | $ 3,400,000 | ||||
Ratings below investment grade | Impaired Puerto Rico Municipal Bonds | ||||||
Gain (Loss) on Investments [Line Items] | ||||||
Number of impaired Puerto Rico municipal bonds held | Bond | 2 | |||||
Net realized gain on sale | $ 22,000 | |||||
Impairment losses on Puerto Rico municipal bonds | $ 660,000 | |||||
Par value of municipal bonds | $ 4,500,000 |
Investments (Detail Textuals 1)
Investments (Detail Textuals 1) | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($)Director | Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | ||
Schedule of Available-for-sale Securities [Line Items] | ||||||||
Investments in fixed maturities | $ 952,572,000 | $ 952,572,000 | $ 899,660,000 | |||||
Available-for-sale securities fair value | 1,045,264,000 | 1,045,264,000 | 973,771,000 | |||||
Carrying value of impaired loans | 5,000,000 | 5,000,000 | 6,300,000 | |||||
Carrying value of loan | 205,957,000 | 205,957,000 | 191,700,000 | |||||
Interest income | 6,000 | $ 3,000 | ||||||
Net realized investment gains | 1,619,000 | $ 350,000 | 2,166,000 | (2,456,000) | ||||
Fair value of available-for-sale equity securities | 92,692,000 | 92,692,000 | 74,111,000 | |||||
Investment Income (Loss) | 522,000 | 3,208,000 | 1,689,000 | 6,212,000 | ||||
Renewable energy bridge financing notes | ||||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||||
Proceeds from maturities and partial repayments | 6,500,000 | 6,300,000 | ||||||
Investment Income (Loss) | [1] | 207,000 | 874,000 | 450,000 | 1,499,000 | |||
Investment amount | 26,500,000 | |||||||
Limited partnerships | ||||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||||
Investment Income (Loss) | [2] | 1,680,000 | 85,000 | 1,836,000 | (74,000) | |||
First Wind | ||||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||||
Carrying value of loan | $ 4,600,000 | |||||||
Corporate and other segment | Limited partnerships | ||||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||||
Carrying values of limited partnerships held | 2,400,000 | 2,400,000 | ||||||
Investment income (loss) | 235,000 | $ (74,000) | ||||||
Excess and Surplus Lines | Limited partnerships | ||||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||||
Carrying values of limited partnerships held | 17,400,000 | 17,400,000 | ||||||
Investment income (loss) | 1,600,000 | |||||||
Commitment to investment in limited partnership | 2,600,000 | 2,600,000 | ||||||
Minimum | Renewable energy bridge financing notes | ||||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||||
Rate of interest | 7.30% | |||||||
Maximum | Renewable energy bridge financing notes | ||||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||||
Rate of interest | 15.00% | |||||||
Fixed maturity securities | ||||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||||
Available-for-sale securities fair value | 952,572,000 | 952,572,000 | 899,660,000 | |||||
Realized gains | 568,000 | 101,000 | 1,410,000 | $ 1,288,000 | ||||
Net realized investment gains | 567,000 | $ 96,000 | 1,408,000 | 623,000 | ||||
Fixed maturity securities | First Wind | ||||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||||
Number of directors | Director | 2 | |||||||
Available-for-sale securities fair value | $ 12,600,000 | |||||||
Realized gains | $ 845,000 | |||||||
Bank Holding Company | ||||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||||
Investment in private subordinated notes | $ 4,500,000 | |||||||
Rate of interest | 7.60% | |||||||
Interest income | $ 172,000 | 172,000 | ||||||
Investment in certificate of deposit | 1,000,000 | |||||||
Fair value of available-for-sale equity securities | $ 8,300,000 | 8,300,000 | $ 8,400,000 | |||||
Investment Income (Loss) | 233,000 | |||||||
Investment in LLC | Corporate and other segment | ||||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||||
Cash distributions from LLCs | $ 1,500,000 | $ 951,000 | ||||||
Investment in LLC | Minimum | Corporate and other segment | ||||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||||
Ownership percentage | 2.70% | 2.70% | ||||||
Investment in LLC | Maximum | Corporate and other segment | ||||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||||
Ownership percentage | 33.30% | 33.30% | ||||||
[1] | The Company has held investments in bridge loans for renewable energy projects. The notes, all with affiliates of the Company's largest shareholder, generally matured in less than one year and carried primarily variable rates of interest ranging from 7.3% to 15.0%. Original discounts and commitment fees received were recognized over the terms of the notes under the effective interest method. During the six months ended June 30, 2016, the outstanding balance of a $6.5 million note was fully repaid. In the six months ended June 30, 2015, the Company invested $26.5 million in these notes and received repayments of $6.3 million. | |||||||
[2] | The Company owns investments in limited partnerships that invest in concentrated portfolios of high yield bonds of companies undergoing financial stress, publicly-traded small cap equities, loans of middle market private equity sponsored companies, and equity tranches of collateralized loan obligations (CLOs). Income from the partnerships is recognized under the equity method of accounting. The Company's Corporate and Other segment held investments in limited partnerships of $2.4 million at June 30, 2016 and recognized investment income of $235,000 and investment losses of $74,000 for the six months ended June 30, 2016 and 2015, respectively. The Chairman and Chief Executive Officer of the Company is an investor in one limited partnership held by the Corporate and Other segment. The Company's Excess and Surplus Lines segment holds investments in limited partnerships of $17.4 million at June 30, 2016. Investment income of $1.6 million was recognized on the investments for the six months ended June 30, 2016. At June 30, 2016 the Company's Excess and Surplus lines segment has an outstanding commitment to invest another $2.6 million in a limited partnership that invests in loans of middle market private equity sponsored companies. |
Goodwill and Intangible Asset38
Goodwill and Intangible Assets (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Dec. 31, 2015 | |
Acquired Intangible Assets [Line Items] | ||
Identifiable intangibles not subject to amortization | $ 31,364 | $ 31,364 |
Identifiable intangible assets subject to amortization | ||
Gross Carrying Amount | 11,611 | 11,611 |
Accumulated Amortization | 3,745 | 3,447 |
Total Intangible Assets, Gross | 42,975 | 42,975 |
Trademarks | ||
Acquired Intangible Assets [Line Items] | ||
Identifiable intangibles not subject to amortization | 22,200 | 22,200 |
Insurance licenses and authorities | ||
Acquired Intangible Assets [Line Items] | ||
Identifiable intangibles not subject to amortization | 9,164 | 9,164 |
Broker relationships | ||
Identifiable intangible assets subject to amortization | ||
Gross Carrying Amount | 11,611 | 11,611 |
Accumulated Amortization | $ 3,745 | $ 3,447 |
Life (Years) | 24 years 7 months 6 days |
Goodwill and Intangible Asset39
Goodwill and Intangible Assets (Detail Textuals) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 | Dec. 11, 2007 |
Business Acquisition [Line Items] | |||
Goodwill | $ 181,831 | $ 181,831 | |
James River Group, Inc. | |||
Business Acquisition [Line Items] | |||
Percentage of outstanding shares | 100.00% | ||
Goodwill | $ 181,800 | $ 181,800 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Earnings Per Share [Abstract] | ||||
Net income to shareholders (in dollars) | $ 14,596 | $ 12,489 | $ 27,433 | $ 21,866 |
Weighted average common shares outstanding: | ||||
Basic (in shares) | 29,035,512 | 28,547,616 | 28,994,260 | 28,544,003 |
Common share equivalents (in shares) | 790,402 | 667,243 | 789,823 | 612,601 |
Diluted (in shares) | 29,825,914 | 29,214,859 | 29,784,083 | 29,156,604 |
Earnings per share: | ||||
Basic (in dollars per share) | $ 0.50 | $ 0.44 | $ 0.95 | $ 0.77 |
Common share equivalents (in dollars per share) | (0.01) | (0.01) | (0.03) | (0.02) |
Diluted (in dollars per share) | $ 0.49 | $ 0.43 | $ 0.92 | $ 0.75 |
Earnings Per Share (Detail Text
Earnings Per Share (Detail Textuals) - shares | 3 Months Ended | 6 Months Ended |
Jun. 30, 2015 | Jun. 30, 2015 | |
Stock options and restricted share units ("RSU's") | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Number of securities excluded from the calculations of diluted earnings per share | 994,335 | 995,180 |
Reserve for Losses and Loss A42
Reserve for Losses and Loss Adjustment Expenses (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Reserve For Losses And Loss Adjustment Expenses [Roll Forward] | |||||
Reserve for losses and loss adjustment expenses net of reinsurance recoverables at beginning of period | $ 672,588 | $ 614,969 | $ 653,534 | $ 589,042 | |
Add: Incurred losses and loss adjustment expenses net of reinsurance: | |||||
Current year | 81,407 | 70,449 | 159,580 | 147,422 | |
Prior years | (4,748) | (2,518) | (9,415) | (5,007) | |
Total incurred losses and loss and adjustment expenses | 76,659 | 67,931 | 150,165 | 142,415 | |
Deduct: Loss and loss adjustment expense payments net of reinsurance: | |||||
Current year | 8,946 | 9,601 | 10,890 | 14,603 | |
Prior years | 50,670 | 45,795 | 103,178 | 89,350 | |
Total loss and loss adjustment expense payments | 59,616 | 55,396 | 114,068 | 103,953 | |
Reserve for losses and loss adjustment expenses net of reinsurance recoverables at end of period | 689,631 | 627,504 | 689,631 | 627,504 | |
Add: Reinsurance recoverables on unpaid losses and loss adjustment expenses at end of period | 153,706 | 134,750 | 153,706 | 134,750 | $ 131,788 |
Reserve for losses and loss adjustment expenses gross of reinsurance recoverables on unpaid losses and loss adjustment expenses at end of period | $ 843,337 | $ 762,254 | $ 843,337 | $ 762,254 | $ 785,322 |
Reserve for Losses and Loss A43
Reserve for Losses and Loss Adjustment Expenses (Detail Textuals) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Favorable development on prior year loss reserves | ||||
Reserve for losses and loss adjustment expenses | $ 4,748,000 | $ 2,518,000 | $ 9,415,000 | $ 5,007,000 |
Excess and Surplus Lines | 2014, 2013, and 2008 accident years | ||||
Favorable development on prior year loss reserves | ||||
Reserve for losses and loss adjustment expenses | 3,600,000 | |||
Excess and Surplus Lines | Accident years 2014, 2013 and 2012 | ||||
Favorable development on prior year loss reserves | ||||
Reserve for losses and loss adjustment expenses | 3,400,000 | 8,000,000 | 8,400,000 | |
Specialty Admitted Insurance | ||||
Favorable development on prior year loss reserves | ||||
Reserve for losses and loss adjustment expenses | 189,000 | |||
Specialty Admitted Insurance | Prior accident years | ||||
Favorable development on prior year loss reserves | ||||
Reserve for losses and loss adjustment expenses | 617,000 | 928,000 | 196,000 | |
Casualty Reinsurance | Prior accident years | ||||
Favorable development on prior year loss reserves | ||||
Reserve for losses and loss adjustment expenses | $ 520,000 | $ 483,000 | ||
Casualty Reinsurance | Underwriting year 2012 | ||||
Favorable development on prior year loss reserves | ||||
Reserve for losses and loss adjustment expenses | $ (1,100,000) | $ (3,600,000) |
Other Comprehensive Income (Det
Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||
Unrealized gains (losses) arising during the period, before U.S. income taxes | $ 15,346 | $ (16,788) | $ 32,464 | $ (11,577) |
U.S. income taxes | (2,147) | 1,871 | (3,077) | 1,330 |
Unrealized gains (losses) arising during the period, net of U.S. income taxes | 13,199 | (14,917) | 29,387 | (10,247) |
Less reclassification adjustment: | ||||
Net realized investment gains | 567 | 96 | 1,408 | 623 |
U.S. income tax (expense) benefit | (160) | (8) | (433) | 186 |
Reclassification adjustment for investment gains realized in net income | 407 | 88 | 975 | 809 |
Other comprehensive income (loss) | $ 12,792 | $ (15,005) | $ 28,412 | $ (11,056) |
Contingent Liabilities (Detail
Contingent Liabilities (Detail Textuals) $ in Millions | 6 Months Ended |
Jun. 30, 2016USD ($)Letter_of_Credit | |
Contingent Liabilities [Line Items] | |
Total amount deposited in trust accounts | $ 235.3 |
JRG Reinsurance Company, Ltd. | |
Contingent Liabilities [Line Items] | |
Number of letter of credit facilities | Letter_of_Credit | 2 |
JRG Reinsurance Company, Ltd. | Letter of credit 100 Million | |
Contingent Liabilities [Line Items] | |
Letters of credit facility, amount | $ 100 |
Amount of letters of credit issued | 88.8 |
Assets deposited for securing letters of credit | 113.7 |
JRG Reinsurance Company, Ltd. | Letter of credit 102.5 Million | |
Contingent Liabilities [Line Items] | |
Letters of credit facility, amount | 102.5 |
Amount of letters of credit issued | 38.4 |
Assets deposited for securing letters of credit | $ 50.1 |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | |||||
Gross written premiums | $ 170,671 | $ 184,011 | $ 303,742 | $ 315,269 | |
Net earned premiums | 118,555 | 106,060 | 235,685 | 223,071 | |
Net investment income (loss) | 11,553 | 13,000 | 22,825 | 24,986 | |
Interest expense | 2,041 | 1,744 | 4,215 | 3,448 | |
Segment revenues | 134,511 | 120,227 | 265,840 | 246,694 | |
Segment goodwill | 181,831 | 181,831 | $ 181,831 | ||
Segment assets | 2,189,861 | 2,189,861 | $ 2,055,497 | ||
Reportable segments | |||||
Segment Reporting Information [Line Items] | |||||
Gross written premiums | 170,671 | 184,011 | 303,742 | 315,269 | |
Net earned premiums | 118,555 | 106,060 | 235,685 | 223,071 | |
Underwriting profit of insurance segments | 10,114 | 6,562 | 20,127 | 13,891 | |
Net investment income (loss) | 11,553 | 13,000 | 22,825 | 24,986 | |
Interest expense | 2,041 | 1,744 | 4,215 | 3,448 | |
Segment revenues | 134,511 | 120,227 | 265,840 | 246,694 | |
Segment goodwill | 181,831 | 181,831 | 181,831 | 181,831 | |
Segment assets | 2,189,861 | 2,062,712 | 2,189,861 | 2,062,712 | |
Reportable segments | Excess and Surplus Lines | |||||
Segment Reporting Information [Line Items] | |||||
Gross written premiums | 97,427 | 77,417 | 179,535 | 153,135 | |
Net earned premiums | 70,565 | 52,867 | 136,070 | 112,267 | |
Underwriting profit of insurance segments | 9,783 | 5,769 | 18,987 | 13,212 | |
Net investment income (loss) | 5,079 | 3,706 | 8,365 | 7,072 | |
Interest expense | |||||
Segment revenues | 78,940 | 57,531 | 150,730 | 118,569 | |
Segment goodwill | 181,831 | 181,831 | 181,831 | 181,831 | |
Segment assets | 731,324 | 712,047 | 731,324 | 712,047 | |
Reportable segments | Specialty Admitted Insurance | |||||
Segment Reporting Information [Line Items] | |||||
Gross written premiums | 34,201 | 17,931 | 62,888 | 38,857 | |
Net earned premiums | 12,207 | 10,150 | 23,612 | 19,705 | |
Underwriting profit of insurance segments | 125 | 199 | 600 | 44 | |
Net investment income (loss) | 640 | 583 | 1,251 | 1,102 | |
Interest expense | |||||
Segment revenues | 13,329 | 10,760 | 25,376 | 20,962 | |
Segment goodwill | |||||
Segment assets | 215,034 | 140,654 | 215,034 | 140,654 | |
Reportable segments | Casualty Reinsurance | |||||
Segment Reporting Information [Line Items] | |||||
Gross written premiums | 39,043 | 88,663 | 61,319 | 123,277 | |
Net earned premiums | 35,783 | 43,043 | 76,003 | 91,099 | |
Underwriting profit of insurance segments | 206 | 594 | 540 | 635 | |
Net investment income (loss) | 6,936 | 5,656 | 13,163 | 10,717 | |
Interest expense | |||||
Segment revenues | 43,304 | 48,845 | 89,612 | 100,997 | |
Segment goodwill | |||||
Segment assets | 1,148,489 | 1,098,508 | 1,148,489 | 1,098,508 | |
Reportable segments | Corporate and Other | |||||
Segment Reporting Information [Line Items] | |||||
Gross written premiums | |||||
Net earned premiums | |||||
Underwriting profit of insurance segments | |||||
Net investment income (loss) | (1,102) | 3,055 | 46 | 6,095 | |
Interest expense | 2,041 | 1,744 | 4,215 | 3,448 | |
Segment revenues | (1,062) | 3,091 | 122 | 6,166 | |
Segment goodwill | |||||
Segment assets | $ 95,014 | $ 111,503 | $ 95,014 | $ 111,503 |
Segment Information (Details 1)
Segment Information (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Segment Reporting Information [Line Items] | ||||
Other operating expenses | $ (5,475) | $ (4,255) | $ (10,727) | $ (8,634) |
Underwriting profit | 4,639 | 2,307 | 9,400 | 5,257 |
Net investment income | 11,553 | 13,000 | 22,825 | 24,986 |
Net realized investment gains | 1,619 | 350 | 2,166 | (2,456) |
Amortization of intangible assets | (149) | (149) | (298) | (298) |
Other income and expenses | (24) | (10) | 52 | (23) |
Interest expense | (2,041) | (1,744) | (4,215) | (3,448) |
Income before taxes | 15,597 | 13,754 | 29,930 | 24,018 |
Reportable segments | ||||
Segment Reporting Information [Line Items] | ||||
Underwriting profit (loss) of the insurance segments | 10,114 | 6,562 | 20,127 | 13,891 |
Net investment income | 11,553 | 13,000 | 22,825 | 24,986 |
Interest expense | (2,041) | (1,744) | (4,215) | (3,448) |
Reportable segments | Excess and Surplus Lines | ||||
Segment Reporting Information [Line Items] | ||||
Underwriting profit (loss) of the insurance segments | 9,783 | 5,769 | 18,987 | 13,212 |
Net investment income | 5,079 | 3,706 | 8,365 | 7,072 |
Interest expense | ||||
Reportable segments | Specialty Admitted Insurance | ||||
Segment Reporting Information [Line Items] | ||||
Underwriting profit (loss) of the insurance segments | 125 | 199 | 600 | 44 |
Net investment income | 640 | 583 | 1,251 | 1,102 |
Interest expense | ||||
Reportable segments | Casualty Reinsurance | ||||
Segment Reporting Information [Line Items] | ||||
Underwriting profit (loss) of the insurance segments | 206 | 594 | 540 | 635 |
Net investment income | 6,936 | 5,656 | 13,163 | 10,717 |
Interest expense | ||||
Reportable segments | Corporate and Other | ||||
Segment Reporting Information [Line Items] | ||||
Underwriting profit (loss) of the insurance segments | ||||
Other operating expenses | (5,475) | (4,255) | (10,727) | (8,634) |
Net investment income | (1,102) | 3,055 | 46 | 6,095 |
Interest expense | $ (2,041) | $ (1,744) | $ (4,215) | $ (3,448) |
Segment Information (Detail Tex
Segment Information (Detail Textuals) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2016USD ($)Segment | Jun. 30, 2015USD ($) | |
Segment Reporting [Abstract] | ||||
Number of reportable segments | Segment | 4 | |||
Fee income in Excess and Surplus Lines segment | $ | $ 2.7 | $ 2.1 | $ 5 | $ 2.4 |
Other Operating Expenses and 49
Other Operating Expenses and Other Expenses (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Other Operating Expenses And Other Expenses [Abstract] | ||||
Amortization of policy acquisition costs | $ 22,710 | $ 22,400 | $ 45,791 | $ 46,902 |
Other underwriting expenses of the operating segments | 11,789 | 9,925 | 24,635 | 20,841 |
Other operating expenses of the Corporate and Other segment | 5,475 | 4,255 | 10,727 | 8,634 |
Total | $ 39,974 | $ 36,580 | $ 81,153 | $ 76,377 |
Other Operating Expenses and 50
Other Operating Expenses and Other Expenses (Detail Textuals) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Other Operating Expenses And Other Expenses [Abstract] | ||||
Other expenses | $ 91 | $ 69 | $ 79 | $ 138 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total available-for-sale securities | $ 1,045,264 | $ 973,771 |
Trading: | ||
Fixed maturity securities | 5,064 | 5,046 |
Short-term investments | 14,906 | 19,270 |
Fixed maturity securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total available-for-sale securities | 952,572 | 899,660 |
State and municipal | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total available-for-sale securities | 103,050 | 103,457 |
Residential mortgage-backed | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total available-for-sale securities | 167,778 | 136,887 |
Corporate | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total available-for-sale securities | 389,379 | 363,168 |
Commercial mortgage and asset-backed | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total available-for-sale securities | 138,516 | 130,696 |
Obligations of U.S. government corporations and agencies | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total available-for-sale securities | 78,900 | 90,163 |
U.S. Treasury securities and obligations guaranteed by the U.S. government | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total available-for-sale securities | 72,910 | 73,255 |
Redeemable preferred stock | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total available-for-sale securities | 2,039 | 2,034 |
Equity securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total available-for-sale securities | 92,692 | 74,111 |
Recurring basis | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total available-for-sale securities | 1,045,264 | 973,771 |
Trading: | ||
Fixed maturity securities | 5,064 | 5,046 |
Short-term investments | 14,906 | 19,270 |
Recurring basis | Fixed maturity securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total available-for-sale securities | 952,572 | 899,660 |
Recurring basis | State and municipal | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total available-for-sale securities | 103,050 | 103,457 |
Recurring basis | Residential mortgage-backed | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total available-for-sale securities | 167,778 | 136,887 |
Recurring basis | Corporate | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total available-for-sale securities | 389,379 | 363,168 |
Recurring basis | Commercial mortgage and asset-backed | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total available-for-sale securities | 138,516 | 130,696 |
Recurring basis | Obligations of U.S. government corporations and agencies | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total available-for-sale securities | 78,900 | 90,163 |
Recurring basis | U.S. Treasury securities and obligations guaranteed by the U.S. government | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total available-for-sale securities | 72,910 | 73,255 |
Recurring basis | Redeemable preferred stock | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total available-for-sale securities | 2,039 | 2,034 |
Recurring basis | Equity securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total available-for-sale securities | 92,692 | 74,111 |
Recurring basis | Preferred stock | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total available-for-sale securities | 69,052 | 54,092 |
Recurring basis | Common stock | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total available-for-sale securities | 23,640 | 20,019 |
Recurring basis | Quoted Prices in Active Markets for Identical Assets Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total available-for-sale securities | 95,095 | 91,827 |
Trading: | ||
Fixed maturity securities | 1,244 | |
Short-term investments | 1,100 | 2,926 |
Recurring basis | Quoted Prices in Active Markets for Identical Assets Level 1 | Fixed maturity securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total available-for-sale securities | 72,189 | 72,542 |
Recurring basis | Quoted Prices in Active Markets for Identical Assets Level 1 | State and municipal | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total available-for-sale securities | ||
Recurring basis | Quoted Prices in Active Markets for Identical Assets Level 1 | Residential mortgage-backed | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total available-for-sale securities | ||
Recurring basis | Quoted Prices in Active Markets for Identical Assets Level 1 | Corporate | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total available-for-sale securities | ||
Recurring basis | Quoted Prices in Active Markets for Identical Assets Level 1 | Commercial mortgage and asset-backed | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total available-for-sale securities | ||
Recurring basis | Quoted Prices in Active Markets for Identical Assets Level 1 | Obligations of U.S. government corporations and agencies | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total available-for-sale securities | ||
Recurring basis | Quoted Prices in Active Markets for Identical Assets Level 1 | U.S. Treasury securities and obligations guaranteed by the U.S. government | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total available-for-sale securities | 72,189 | 72,542 |
Recurring basis | Quoted Prices in Active Markets for Identical Assets Level 1 | Redeemable preferred stock | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total available-for-sale securities | ||
Recurring basis | Quoted Prices in Active Markets for Identical Assets Level 1 | Equity securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total available-for-sale securities | 22,906 | 19,285 |
Recurring basis | Quoted Prices in Active Markets for Identical Assets Level 1 | Preferred stock | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total available-for-sale securities | ||
Recurring basis | Quoted Prices in Active Markets for Identical Assets Level 1 | Common stock | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total available-for-sale securities | 22,906 | 19,285 |
Recurring basis | Significant Other Observable Inputs Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total available-for-sale securities | 945,169 | 876,944 |
Trading: | ||
Fixed maturity securities | 5,064 | 3,802 |
Short-term investments | 13,806 | 16,344 |
Recurring basis | Significant Other Observable Inputs Level 2 | Fixed maturity securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total available-for-sale securities | 875,383 | 822,118 |
Recurring basis | Significant Other Observable Inputs Level 2 | State and municipal | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total available-for-sale securities | 103,050 | 103,457 |
Recurring basis | Significant Other Observable Inputs Level 2 | Residential mortgage-backed | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total available-for-sale securities | 167,778 | 136,887 |
Recurring basis | Significant Other Observable Inputs Level 2 | Corporate | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total available-for-sale securities | 389,379 | 363,168 |
Recurring basis | Significant Other Observable Inputs Level 2 | Commercial mortgage and asset-backed | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total available-for-sale securities | 133,516 | 125,696 |
Recurring basis | Significant Other Observable Inputs Level 2 | Obligations of U.S. government corporations and agencies | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total available-for-sale securities | 78,900 | 90,163 |
Recurring basis | Significant Other Observable Inputs Level 2 | U.S. Treasury securities and obligations guaranteed by the U.S. government | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total available-for-sale securities | 721 | 713 |
Recurring basis | Significant Other Observable Inputs Level 2 | Redeemable preferred stock | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total available-for-sale securities | 2,039 | 2,034 |
Recurring basis | Significant Other Observable Inputs Level 2 | Equity securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total available-for-sale securities | 69,786 | 54,826 |
Recurring basis | Significant Other Observable Inputs Level 2 | Preferred stock | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total available-for-sale securities | 69,052 | 54,092 |
Recurring basis | Significant Other Observable Inputs Level 2 | Common stock | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total available-for-sale securities | 734 | 734 |
Recurring basis | Significant Unobservable Inputs Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total available-for-sale securities | 5,000 | 5,000 |
Trading: | ||
Fixed maturity securities | ||
Short-term investments | ||
Recurring basis | Significant Unobservable Inputs Level 3 | Fixed maturity securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total available-for-sale securities | 5,000 | 5,000 |
Recurring basis | Significant Unobservable Inputs Level 3 | State and municipal | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total available-for-sale securities | ||
Recurring basis | Significant Unobservable Inputs Level 3 | Residential mortgage-backed | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total available-for-sale securities | ||
Recurring basis | Significant Unobservable Inputs Level 3 | Corporate | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total available-for-sale securities | ||
Recurring basis | Significant Unobservable Inputs Level 3 | Commercial mortgage and asset-backed | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total available-for-sale securities | 5,000 | 5,000 |
Recurring basis | Significant Unobservable Inputs Level 3 | Obligations of U.S. government corporations and agencies | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total available-for-sale securities | ||
Recurring basis | Significant Unobservable Inputs Level 3 | U.S. Treasury securities and obligations guaranteed by the U.S. government | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total available-for-sale securities | ||
Recurring basis | Significant Unobservable Inputs Level 3 | Redeemable preferred stock | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total available-for-sale securities | ||
Recurring basis | Significant Unobservable Inputs Level 3 | Equity securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total available-for-sale securities | ||
Recurring basis | Significant Unobservable Inputs Level 3 | Preferred stock | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total available-for-sale securities | ||
Recurring basis | Significant Unobservable Inputs Level 3 | Common stock | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total available-for-sale securities |
Fair Value Measurements (Deta52
Fair Value Measurements (Details 1) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Bank loan participations held for investment | $ 2,700 | $ 2,300 |
Nonrecurring basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Bank loan participations held for investment | 2,745 | 2,342 |
Nonrecurring basis | Quoted Prices in Active Markets for Identical Assets Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Bank loan participations held for investment | ||
Nonrecurring basis | Significant Other Observable Inputs Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Bank loan participations held for investment | ||
Nonrecurring basis | Significant Unobservable Inputs Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Bank loan participations held for investment | $ 2,745 | $ 2,342 |
Fair Value Measurements (Deta53
Fair Value Measurements (Details 2) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 | Jun. 30, 2015 | Dec. 31, 2014 |
Available-for-sale: | ||||
Fixed maturity securities | $ 952,572 | $ 899,660 | ||
Equity securities | 92,692 | 74,111 | ||
Trading: | ||||
Bank loan participations held-for-investment | 205,957 | 191,700 | ||
Cash and cash equivalents | 80,654 | 106,406 | $ 65,832 | $ 73,383 |
Short-term investments | 14,906 | 19,270 | ||
Liabilities | ||||
Senior debt | 88,300 | 88,300 | ||
Carrying Value | ||||
Available-for-sale: | ||||
Fixed maturity securities | 952,572 | 899,660 | ||
Equity securities | 92,692 | 74,111 | ||
Trading: | ||||
Fixed maturity securities | 5,064 | 5,046 | ||
Bank loan participations held-for-investment | 205,957 | 191,700 | ||
Cash and cash equivalents | 80,654 | 106,406 | ||
Short-term investments | 14,906 | 19,270 | ||
Other invested assets - notes receivable | 4,500 | 11,000 | ||
Liabilities | ||||
Senior debt | 88,300 | 88,300 | ||
Junior subordinated debt | 104,055 | 104,055 | ||
Fair Value | ||||
Available-for-sale: | ||||
Fixed maturity securities | 952,572 | 899,660 | ||
Equity securities | 92,692 | 74,111 | ||
Trading: | ||||
Fixed maturity securities | 5,064 | 5,046 | ||
Bank loan participations held-for-investment | 198,905 | 180,086 | ||
Cash and cash equivalents | 80,654 | 106,406 | ||
Short-term investments | 14,906 | 19,270 | ||
Other invested assets - notes receivable | 6,169 | 12,548 | ||
Liabilities | ||||
Senior debt | 84,763 | 79,539 | ||
Junior subordinated debt | $ 98,796 | $ 84,594 |
Fair Value Measurements (Deta54
Fair Value Measurements (Detail Textuals) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Fair Value Disclosures [Abstract] | ||
Impaired bank loan participations held for investment | $ 2.7 | $ 2.3 |
Unpaid principal on bank loan participations for which external sources were unavailable to determine fair value | 3.2 | 5.3 |
Carrying value of bank loan participations for which external sources were unavailable to determine fair value | $ 2.8 | $ 4.6 |
Capital Stock and Equity Awar55
Capital Stock and Equity Awards (Details) - USD ($) $ / shares in Units, $ in Millions | May 03, 2016 | May 05, 2015 | Feb. 16, 2016 | Feb. 17, 2015 | Jun. 30, 2016 | Jun. 30, 2015 |
Stockholders' Equity Note [Abstract] | ||||||
Date of Declaration | May 3, 2016 | May 5, 2015 | Feb. 16, 2016 | Feb. 17, 2015 | ||
Dividend per Common Share | $ 0.20 | $ 0.16 | $ 0.20 | $ 0.16 | $ 0.40 | $ 0.32 |
Payable to Shareholders of Record on | Jun. 13, 2016 | Jun. 15, 2015 | Mar. 14, 2016 | Mar. 16, 2015 | ||
Payment Date | Jun. 30, 2016 | Jun. 30, 2015 | Mar. 28, 2016 | Mar. 31, 2015 | ||
Total Amount | $ 5.9 | $ 4.6 | $ 5.8 | $ 4.6 | $ 11.7 | $ 9.2 |
Capital Stock and Equity Awar56
Capital Stock and Equity Awards (Details 1) - Options - $ / shares | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Shares | ||
Outstanding, Beginning of period | 2,058,085 | 3,104,768 |
Granted | 706,203 | 10,627 |
Exercised | (231,916) | (41,250) |
Forfeited | (3,362) | (9,810) |
Outstanding, End of period | 2,529,010 | 3,064,335 |
Exercisable, end of period | 1,017,643 | 1,763,124 |
Weighted- Average Exercise Price | ||
Outstanding, Beginning of period | $ 18.11 | $ 17.27 |
Granted | 32.07 | 24.32 |
Exercised | 15.95 | 15.65 |
Forfeited | 21 | 21 |
Outstanding, End of period | 22.2 | 17.3 |
Exercisable, end of period | $ 17.01 | $ 15.48 |
Capital Stock and Equity Awar57
Capital Stock and Equity Awards (Details 2) - $ / shares | 1 Months Ended | 6 Months Ended | |
Feb. 16, 2016 | Jun. 30, 2016 | Jun. 30, 2015 | |
Shares | |||
Granted | 58,663 | ||
RSUs | |||
Shares | |||
Unvested, beginning of period | 234,922 | 340,474 | |
Granted | 60,291 | ||
Unvested, end of period | 295,213 | 340,474 | |
Weighted- Average Grant Date Fair Value | |||
Unvested, beginning of period | $ 21 | $ 21 | |
Granted | $ 32.07 | 32.03 | |
Unvested, end of period | $ 23.25 | $ 21 |
Capital Stock and Equity Awar58
Capital Stock and Equity Awards (Details 3) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Stockholders' Equity Note [Abstract] | ||||
Share based compensation expense | $ 1,498 | $ 943 | $ 2,687 | $ 1,854 |
U.S. tax benefit on share based compensation expense | $ 421 | $ 257 | $ 757 | $ 505 |
Capital Stock and Equity Awar59
Capital Stock and Equity Awards (Detail Textuals) - shares | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Common stock, shares issued | 29,091,496 | 28,941,547 | ||
Common stock, shares outstanding | 29,091,496 | 28,941,547 | ||
Common stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of common shares issued during period related to stock option exercises | 149,949 | 41,250 | ||
Common stock, shares outstanding | 29,091,496 | 28,581,600 | 28,941,547 | 28,540,350 |
Capital Stock and Equity Awar60
Capital Stock and Equity Awards (Detail Textuals 1) - USD ($) $ / shares in Units, $ in Millions | May 03, 2016 | Feb. 16, 2016 | Jun. 30, 2016 | Jun. 30, 2015 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares granted | 58,663 | |||
Unrecognized share based compensation expense | $ 10.2 | |||
Weighted-average period of unrecognized share based compensation expense | 2 years 1 month 6 days | |||
Weighted-average remaining contractual life of options outstanding | 4 years 9 months 18 days | |||
Weighted-average remaining contractual life of options exercisable | 3 years 4 months 24 days | |||
RSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares granted | 60,291 | |||
Fair value at date of grant | $ 32.07 | $ 32.03 | ||
RSUs | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 1 year | |||
RSUs | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 3 years | |||
Non-qualified stock options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of options granted | 706,203 | 10,627 | ||
Exercise price | $ 32.07 | $ 24.32 | ||
2014 Long Term Incentive Plan ("2014 LTIP") | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Maximum number of shares available for issuance | 3,171,150 | |||
Number of shares available for grant | 1,086,657 | |||
2014 Long Term Incentive Plan ("2014 LTIP") | Non-qualified stock options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of options granted | 706,203 | |||
Exercise price | $ 32.07 | |||
Vesting period | 3 years | |||
2014 Non-Employee Director Incentive Plan ("2014 Director Plan") | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Maximum number of shares available for issuance | 50,000 | |||
Number of shares available for grant | 36,552 | |||
2014 Non-Employee Director Incentive Plan ("2014 Director Plan") | RSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares granted | 1,628 | |||
Exercise price | $ 30.69 | |||
Vesting period | 1 year |
Subsequent Events (Detail Textu
Subsequent Events (Detail Textuals) - $ / shares | Aug. 03, 2016 | May 03, 2016 | May 05, 2015 | Feb. 16, 2016 | Feb. 17, 2015 | Jun. 30, 2016 | Jun. 30, 2015 |
Subsequent Event [Line Items] | |||||||
Dividend payable, date declared | May 3, 2016 | May 5, 2015 | Feb. 16, 2016 | Feb. 17, 2015 | |||
Payable to Shareholders of Record on | Jun. 13, 2016 | Jun. 15, 2015 | Mar. 14, 2016 | Mar. 16, 2015 | |||
Payment Date | Jun. 30, 2016 | Jun. 30, 2015 | Mar. 28, 2016 | Mar. 31, 2015 | |||
Cash dividend declared per share | $ 0.20 | $ 0.16 | $ 0.20 | $ 0.16 | $ 0.40 | $ 0.32 | |
Subsequent event | |||||||
Subsequent Event [Line Items] | |||||||
Dividend payable, date declared | Aug. 3, 2016 | ||||||
Payable to Shareholders of Record on | Sep. 12, 2016 | ||||||
Payment Date | Sep. 30, 2016 | ||||||
Cash dividend declared per share | $ 0.20 |