Document and Entity Information
Document and Entity Information Document - shares | 3 Months Ended | |
Mar. 31, 2023 | Apr. 21, 2023 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Mar. 31, 2023 | |
Entity Registrant Name | KINSALE CAPITAL GROUP, INC. | |
Entity File Number | 001-37848 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 98-0664337 | |
Entity Address, Address Line One | 2035 Maywill Street | |
Entity Address, Address Line Two | Suite 100 | |
Entity Address, City or Town | Richmond | |
Entity Address, State or Province | VA | |
Entity Address, Postal Zip Code | 23230 | |
Entity Current Reporting Status | Yes | |
City Area Code | 804 | |
Local Phone Number | 289-1300 | |
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Trading Symbol | KNSL | |
Security Exchange Name | NYSE | |
Entity Filer Category | Large Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Interactive Data Current | Yes | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 23,154,606 | |
Entity Central Index Key | 0001669162 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Assets | ||
Fixed-maturity securities, available for sale, at fair value (amortized cost: $2,123,256 – 2023, $447 allowance for credit loss; $1,933,632 and $366 – 2022) | $ 1,971,800 | $ 1,760,100 |
Equity securities, at fair value (cost: $141,855 – 2023; $126,478 – 2022) | 171,366 | 152,471 |
Real Estate Investments, Net | 76,475 | 76,387 |
Short-term investments | 26,640 | 41,337 |
Total investments | 2,246,281 | 2,030,295 |
Cash and Cash Equivalents, at Carrying Value | 158,648 | 156,274 |
Investment income due and accrued | 14,948 | 14,451 |
Premium Receivable, Allowance for Credit Loss | 10,127 | 8,067 |
Premiums receivable, net | 128,774 | 105,754 |
Reinsurance recoverables, net | 218,796 | 220,454 |
Ceded unearned premiums | 45,115 | 42,935 |
Deferred policy acquisition costs, net of ceding commissions | 69,444 | 61,594 |
Intangible assets | 3,538 | 3,538 |
Deferred Income Tax Assets, Net | 53,320 | 56,983 |
Other assets | 58,958 | 54,844 |
Total assets | 2,997,822 | 2,747,122 |
Liabilities | ||
Reserves for unpaid losses and loss adjustment expenses | 1,354,151 | 1,238,402 |
Unearned premiums | 563,729 | 499,677 |
Payable to reinsurers | 33,111 | 32,024 |
Accounts payable and accrued expenses | 12,509 | 31,361 |
Credit facility | 195,747 | |
Debt | 195,812 | |
Other liabilities | 22,779 | 4,462 |
Total liabilities | 2,182,091 | 2,001,673 |
Stockholders' Equity | ||
Common stock, $0.01 par value, 400,000,000 shares authorized, 23,153,945 and 23,090,526 shares issued and outstanding at March 31, 2023 and December 31, 2022 respectively | 232 | 231 |
Additional paid-in capital | 347,222 | 347,015 |
Retained earnings | 585,686 | 533,121 |
Accumulated other comprehensive loss | (117,409) | (134,918) |
Total stockholders’ equity | 815,731 | 745,449 |
Total liabilities and stockholders’ equity | $ 2,997,822 | $ 2,747,122 |
Consolidated Balance Sheet (Una
Consolidated Balance Sheet (Unaudited) (Parentheticals) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Assets [Abstract] | ||
Fixed-maturity securities, available for sale, amortized cost | $ 2,123,256 | $ 1,933,632 |
Allowance for Credit Losses | (447) | (366) |
Equity securities - cost | 141,855 | 126,478 |
Reinsurance Recoverable, Allowance for Credit Loss | $ (459) | $ (459) |
Stockholders' Equity | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 400,000,000 | 400,000,000 |
Common stock, shares issued (in shares) | 23,153,945 | 23,090,526 |
Common stock, shares outstanding (in shares) | 23,153,945 | 23,090,526 |
Consolidated Statements of Inco
Consolidated Statements of Income and Comprehensive Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Revenues: | ||
Gross written premiums | $ 357,588 | $ 245,513 |
Ceded written premiums | (58,558) | (29,015) |
Net written premiums | 299,030 | 216,498 |
Change in unearned premiums | (61,872) | (37,936) |
Net earned premiums | 237,158 | 178,562 |
Net investment income | 20,695 | 9,088 |
Change in the fair value of equity securities | 3,518 | (7,751) |
Net realized investment (losses) gains | (4,652) | 295 |
Change in allowance for credit losses on investments | (81) | 0 |
Other income | 306 | 124 |
Total revenues | 256,944 | 180,318 |
Expenses: | ||
Losses and loss adjustment expenses | 139,034 | 102,505 |
Underwriting, acquisition and insurance expenses | 46,545 | 38,545 |
Interest Expense | 2,570 | 253 |
Other expenses | 402 | 143 |
Total expenses | 188,551 | 141,446 |
Income before income taxes | 68,393 | 38,872 |
Total income tax expense | 12,593 | 7,081 |
Net income | 55,800 | 31,791 |
Other comprehensive income (loss): | ||
Change in net unrealized gains (losses) on available-for-sale investments, net of taxes | 17,509 | (63,930) |
Total comprehensive income (loss) | $ 73,309 | $ (32,139) |
Earnings per share: | ||
Basic | $ 2.43 | $ 1.40 |
Diluted | $ 2.40 | $ 1.38 |
Weighted average shares outstanding: | ||
Basic | 23,008 | 22,753 |
Diluted | 23,290 | 23,093 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] |
Balance, shares at Dec. 31, 2021 | 22,834,377 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock-based compensation (shares) | 75,630 | ||||
Restricted shares withheld for taxes (shares) | (2,459) | ||||
Balance, shares at Mar. 31, 2022 | 22,907,548 | ||||
Balance at Dec. 31, 2021 | $ 699,335 | $ 228 | $ 295,040 | $ 385,942 | $ 18,125 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of stock under stock-based compensation plan | 378 | 1 | 377 | ||
Stock-based compensation expense | 1,489 | 1,489 | |||
Restricted shares withheld for taxes | (516) | (516) | |||
Dividends declared | (2,977) | (2,977) | |||
Other comprehensive income (loss), net of tax | (63,930) | (63,930) | |||
Net income | 31,791 | 31,791 | |||
Balance at Mar. 31, 2022 | $ 665,570 | $ 229 | 296,390 | 414,756 | (45,805) |
Balance, shares at Dec. 31, 2022 | 23,090,526 | 23,090,526 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock-based compensation (shares) | 70,047 | ||||
Restricted shares withheld for taxes (shares) | (6,628) | ||||
Balance, shares at Mar. 31, 2023 | 23,153,945 | 23,153,945 | |||
Balance at Dec. 31, 2022 | $ 745,449 | $ 231 | 347,015 | 533,121 | (134,918) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of stock under stock-based compensation plan | 324 | 1 | 323 | ||
Stock-based compensation expense | 1,988 | 1,988 | |||
Restricted shares withheld for taxes | (2,104) | (2,104) | |||
Dividends declared | (3,235) | (3,235) | |||
Other comprehensive income (loss), net of tax | 17,509 | 17,509 | |||
Net income | 55,800 | 55,800 | |||
Balance at Mar. 31, 2023 | $ 815,731 | $ 232 | $ 347,222 | $ 585,686 | $ (117,409) |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Stockholders' Equity (Unaudited) (Parentheticals) - $ / shares | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Statement of Stockholders' Equity [Abstract] | ||
Dividends declared, per share | $ 0.14 | $ 0.13 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Operating Activities | |||
Net cash provided by operating activities | $ 197,604 | $ 121,929 | |
Investing Activities | |||
Purchase of property and equipment | (2,660) | (703) | |
Purchase of real estate investment | (558) | 0 | $ (76,600) |
Change in short-term investments, net | 15,066 | (840) | |
Purchases – fixed-maturity securities | (258,220) | (226,496) | |
Purchases - equity securities | (20,300) | (487) | |
Sales – fixed-maturity securities | 49,220 | 54,238 | |
Sales – equity securities | 1,137 | 1,625 | |
Maturities and calls – fixed-maturity securities | 26,103 | 36,953 | |
Net cash used in investing activities | (190,212) | (135,710) | |
Financing Activities | |||
Payroll taxes withheld and remitted on share-based payments | (2,104) | (516) | |
Proceeds from stock options exercised | 324 | 378 | |
Dividends paid | (3,238) | (2,963) | |
Net cash used in financing activities | (5,018) | (3,101) | |
Net change in cash and cash equivalents | 2,374 | (16,882) | |
Cash and cash equivalents at beginning of period | 121,040 | $ 121,040 | |
Cash and cash equivalents at end of period | $ 158,648 | $ 104,158 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of presentation The unaudited condensed consolidated financial statements and notes have been prepared in accordance with U.S. generally accepted accounting principles ("U.S. GAAP") for interim financial information and do not contain all of the information and footnotes required by U.S. GAAP for complete financial statements. As such, these unaudited condensed consolidated interim financial statements should be read in conjunction with the audited consolidated financial statements of Kinsale Capital Group, Inc. and its subsidiaries ("the Company") included in the Annual Report on Form 10-K for the year ended December 31, 2022. 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. All significant intercompany balances and transactions have been eliminated in consolidation. Certain prior year amounts have been reclassified to conform to the current year's presentation. Interim results are not necessarily indicative of results of operations for the full year. Use of estimates The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, if any, at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Prospective accounting pronouncements There are no prospective accounting standards which, upon their effective date, would have a material impact on the Company's condensed consolidated financial statements. |
Investments
Investments | 3 Months Ended |
Mar. 31, 2023 | |
Investments [Abstract] | |
Investments | Investments Available-for-sale investments The following tables summarize the available-for-sale investments at March 31, 2023 and December 31, 2022: March 31, 2023 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Allowance for Credit Losses Estimated Fair Value (in thousands) Fixed maturities: U.S. Treasury securities and obligations of U.S. government agencies $ 17,940 $ — $ (964) $ — $ 16,976 Obligations of states, municipalities and political subdivisions 206,449 327 (20,973) — 185,803 Corporate and other securities 1,008,098 1,803 (70,423) (447) 939,031 Asset-backed securities 484,384 830 (6,703) — 478,511 Residential mortgage-backed securities 341,064 52 (49,225) — 291,891 Commercial mortgage-backed securities 65,321 — (5,733) — 59,588 Total fixed-maturity investments $ 2,123,256 $ 3,012 $ (154,021) $ (447) $ 1,971,800 December 31, 2022 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Allowance for Credit Losses Estimated Fair Value (in thousands) Fixed maturities: U.S. Treasury securities and obligations of U.S. government agencies $ 17,934 $ — $ (1,193) $ — $ 16,741 Obligations of states, municipalities and political subdivisions 230,746 330 (26,444) — 204,632 Corporate and other securities 909,285 730 (76,757) (366) 832,892 Asset-backed securities 361,248 292 (8,534) — 353,006 Residential mortgage-backed securities 349,066 52 (55,156) — 293,962 Commercial mortgage-backed securities 65,353 — (6,486) — 58,867 Total fixed-maturity investments $ 1,933,632 $ 1,404 $ (174,570) $ (366) $ 1,760,100 Available-for-sale securities in a loss position The Company regularly reviews all its available-for-sale investments with unrealized losses to assess whether the decline in the fair value is deemed to be a credit loss. The Company considers a number of factors in completing its review of credit losses, including the extent to which a security's fair value has been below cost and the financial condition of an issuer. In addition to specific issuer information, the Company also evaluates the current market and interest rate environment. Generally, a decline in a security’s value caused by a change in the market or interest rate environment does not constitute a credit loss. For fixed-maturity securities, the Company also considers whether it intends to sell the security or, if it is more likely than not that it will be required to sell the security before recovery, and its ability to recover all amounts outstanding when contractually due. When assessing whether it intends to sell a fixed-maturity security or, if it is likely to be required to sell a fixed-maturity security before recovery of its amortized cost, the Company evaluates facts and circumstances including, but not limited to, decisions to reposition the investment portfolio, potential sales of investments to meet cash flow needs and potential sales of investments to capitalize on favorable pricing. For fixed-maturity securities where a decline in fair value is below the amortized cost basis and the Company intends to sell the security, or it is more likely than not that the Company will be required to sell the security before recovery of its amortized cost, an impairment is recognized in net income based on the fair value of the security at the time of assessment. For fixed-maturity securities that the Company does not intend to sell or for which it is more likely than not that the Company would not be required to sell before recovery of its amortized cost, the Company compares the estimated present value of the cash flows expected to be collected to the amortized cost of the security. The extent to which the estimated present value of the cash flows expected to be collected is less than the amortized cost of the security represents the credit-related portion of the impairment, which is recognized in net income through an allowance for credit losses. Any remaining decline in fair value represents the noncredit portion of the impairment, which is recognized in other comprehensive income. The Company reports investment income due and accrued separately from available-for-sale investments and has elected not to measure an allowance for credit losses for investment income due and accrued. Investment income due and accrued is written off through earnings at the time the issuer of the bond defaults or is expected to default on payments. As of March 31, 2023, the Company's credit loss review resulted in an allowance for credit losses on 7 securities. The following table presents changes in the allowance for expected credit losses on available-for-sale securities: Three Months Ended March 31, 2023 2022 (in thousands) Beginning balance $ 366 $ — Increase to allowance from securities for which credit losses were not previously recorded — — Reduction from securities sold during the period — — Net increase (decrease) from securities that had an allowance at the beginning of the period 81 — Ending balance $ 447 $ — The following tables summarize gross unrealized losses and estimated fair value for available-for-sale investments by length of time that the securities have continuously been in an unrealized loss position: March 31, 2023 Less than 12 Months 12 Months or Longer Total Estimated Fair Value Gross Unrealized Losses Estimated Fair Value Gross Unrealized Losses Estimated Fair Value Gross Unrealized Losses (in thousands) Fixed maturities: U.S. Treasury securities and obligations of the U.S. government agencies $ 3,344 $ (27) $ 13,632 $ (937) $ 16,976 $ (964) Obligations of states, municipalities and political subdivisions 73,448 (3,397) 62,164 (17,576) 135,612 (20,973) Corporate and other securities 380,272 (7,621) 386,348 (62,802) 766,620 (70,423) Asset-backed securities 163,407 (1,236) 201,074 (5,467) 364,481 (6,703) Residential mortgage-backed securities 9,915 (465) 281,614 (48,760) 291,529 (49,225) Commercial mortgage-backed securities 6,351 (353) 53,237 (5,380) 59,588 (5,733) Total fixed-maturity investments $ 636,737 $ (13,099) $ 998,069 $ (140,922) $ 1,634,806 $ (154,021) At March 31, 2023, the Company held 897 fixed-maturity securities in an unrealized loss position with a total estimated fair value of $1.6 billion and gross unrealized losses of $154.0 million. Of these securities, 569 were in a continuous unrealized loss position for greater than one year. As discussed above, the Company regularly reviews all fixed-maturity securities within its investment portfolio to determine whether a credit loss has occurred. Based on the Company's review as of March 31, 2023, except for securities previously discussed, unrealized losses were caused by interest rate changes or other market factors and were not credit-specific issues. At March 31, 2023, 80.3% of the Company’s fixed-maturity securities were rated "A-" or better and all of the Company’s fixed-maturity securities made expected coupon payments under the contractual terms of the securities. December 31, 2022 Less than 12 Months 12 Months or Longer Total Estimated Fair Value Gross Unrealized Losses Estimated Fair Value Gross Unrealized Losses Estimated Fair Value Gross Unrealized Losses (in thousands) Fixed maturities: U.S. Treasury securities and obligations of U.S. government agencies $ 10,538 $ (447) $ 6,204 $ (746) $ 16,742 $ (1,193) Obligations of states, municipalities and political subdivisions 141,460 (20,347) 17,314 (6,097) 158,774 (26,444) Corporate and other securities 583,619 (42,675) 156,148 (34,082) 739,767 (76,757) Asset-backed securities 216,487 (5,429) 97,703 (3,105) 314,190 (8,534) Residential mortgage-backed securities 98,909 (12,324) 194,773 (42,832) 293,682 (55,156) Commercial mortgage-backed securities 50,666 (4,732) 8,201 (1,754) 58,867 (6,486) Total fixed-maturity investments $ 1,101,679 $ (85,954) $ 480,343 $ (88,616) $ 1,582,022 $ (174,570) Contractual maturities of available-for-sale fixed-maturity securities The amortized cost and estimated fair value of available-for-sale fixed-maturity securities at March 31, 2023 are summarized, by contractual maturity, as follows: March 31, 2023 Amortized Estimated Cost Fair Value (in thousands) Due in one year or less $ 55,240 $ 54,255 Due after one year through five years 724,427 703,547 Due after five years through ten years 214,934 189,970 Due after ten years 237,886 194,038 Asset-backed securities 484,384 478,511 Residential mortgage-backed securities 341,064 291,891 Commercial mortgage-backed securities 65,321 59,588 Total fixed-maturity securities $ 2,123,256 $ 1,971,800 Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties, and the lenders may have the right to put the securities back to the borrower. Real estate investments In December 2022, the Company completed the purchase of a real estate investment property. Real estate investments consisted of the following: March 31, 2023 December 31, 2022 (in thousands) Building $ 45,253 $ 44,931 Land 18,166 17,946 Intangible in-place lease 9,776 9,749 Site improvements 2,714 2,686 Parking deck 1,314 1,311 77,223 76,623 Accumulated depreciation (748) (236) Total real estate investments, net $ 76,475 $ 76,387 Concurrent with the purchase of the real estate investment property, the Company entered into two operating lease agreements for office space as the lessor. The terms of these two leases are 5 years and 12 years. Future minimum rental income expected on these operating leases is $3.3 million in 2023, $4.5 million in 2024, $4.6 million in 2025, $4.8 million in 2026, $4.9 million in 2027 and $36.2 million thereafter. Net investment income The following table presents the components of net investment income for the three months ended March 31, 2023 and 2022: Three Months Ended March 31, 2023 2022 (in thousands) Interest: Taxable bonds $ 18,104 $ 7,795 Tax exempt municipal bonds 636 857 Cash equivalents and short-term investments 713 19 Dividends on equity securities 1,143 1,030 Real estate investment income 1,358 — Gross investment income 21,954 9,701 Investment expenses (1,259) (613) Net investment income $ 20,695 $ 9,088 Investment expenses included depreciation expense related to real estate investments of $0.5 million for the three months ended March 31, 2023. There was no depreciation of real estate investments for the three months ended March 31, 2022. Realized investment gains and losses The following table presents realized investment gains and losses for the three months ended March 31, 2023 and 2022: Three Months Ended March 31, 2023 2022 (in thousands) Fixed-maturity securities: Realized gains $ 399 $ 842 Realized losses (1,259) (365) Net realized (losses) gains from fixed-maturity securities (860) 477 Equity securities: Realized gains 15 — Realized losses (3,800) (148) Net realized losses from equity securities (3,785) (148) Realized losses from the sales of short-term investments (7) (34) Net realized investment (losses) gains $ (4,652) $ 295 The net realized gains or losses on sales of equity securities represent the total gains or losses from the purchase dates of the equity securities. The change in unrealized gains (losses) in the consolidated statement of income consists of two components: (1) the reversal of the gain or loss recognized in previous periods on equity securities sold and (2) the change in unrealized gain or loss resulting from mark-to-market adjustments on equity securities still held. Change in net unrealized gains (losses) on fixed-maturity securities For the three months ended March 31, 2023 and 2022, the changes in net unrealized gains (losses) for fixed-maturity securities were $22.2 million and $(80.9) million, respectively. Insurance – statutory deposits The Company had invested assets with a fair value of $5.9 million on deposit with state regulatory authorities at both March 31, 2023 and December 31, 2022. Payable for investments purchased The Company recorded a payable for investments purchased, not yet settled, of $9.6 million and $1.8 million at March 31, 2023 and December 31, 2022, respectively. The payable balance was included in the "other liabilities" line item of the consolidated balance sheet. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value MeasurementsFair value is estimated for each class of financial instrument based on the framework established in the fair value accounting guidance. Fair value is defined as the price in the principal market that would be received for an asset or paid to transfer a liability to facilitate an orderly transaction between market participants on the measurement date. Market participants are assumed to be independent, knowledgeable, able and willing to transact an exchange and not acting under duress. Fair value hierarchy disclosures are based on the quality of inputs used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Adjustments to transaction prices or quoted market prices may be required in illiquid or disorderly markets in order to estimate fair value. The three levels of the fair value hierarchy are defined as follows: Level 1 - Inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities traded in active markets. Level 2 - Inputs to the valuation methodology include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability and market-corroborated inputs. Level 3 - Inputs to the valuation methodology are unobservable for the asset or liability and are significant to the fair value measurement. Fair values of the Company's investment portfolio are estimated using unadjusted prices obtained by its investment accounting vendor from nationally recognized third-party pricing services, where available. Values for U.S. Treasuries, exchange traded funds and common stocks are generally based on Level 1 inputs, which use quoted prices in active markets for identical assets. For other fixed-maturity securities and non-redeemable preferred stock, the pricing vendors use a pricing methodology involving the market approach, including pricing models which use prices and relevant market information regarding a particular security or securities with similar characteristics to establish a valuation. The estimates of fair value of these investments are included in the amounts disclosed as Level 2. For those investments where significant inputs are unobservable, the Company's investment accounting vendor obtains valuations from pricing vendors or brokers using the market approach and income approach valuation techniques and are disclosed as Level 3. Management performs several procedures to ascertain the reasonableness of investment values included in the condensed consolidated financial statements, including 1) obtaining and reviewing internal control reports from the Company's investment accounting vendor that assess fair values from third party pricing services, 2) discussing with the Company's investment accounting vendor its process for reviewing and validating pricing obtained from third party pricing services and 3) reviewing the security pricing received from the Company's investment accounting vendor and monitoring changes in unrealized gains and losses at the individual security level. The Company has evaluated the various types of securities in its investment portfolio to determine an appropriate fair value hierarchy level based upon trading activity and the observability of market inputs. The following tables present the balances of assets measured at fair value on a recurring basis as of March 31, 2023 and December 31, 2022, by level within the fair value hierarchy: March 31, 2023 Level 1 Level 2 Level 3 Total (in thousands) Assets Fixed maturities: U.S. Treasury securities and obligations of U.S. government agencies $ 16,976 $ — $ — $ 16,976 Obligations of states, municipalities and political subdivisions — 185,803 — 185,803 Corporate and other securities — 939,031 — 939,031 Asset-backed securities — 478,511 — 478,511 Residential mortgage-backed securities — 291,891 — 291,891 Commercial mortgage-backed securities — 59,588 — 59,588 Total fixed-maturity securities 16,976 1,954,824 — 1,971,800 Equity securities: Exchange traded funds 107,367 — — 107,367 Non-redeemable preferred stock — 34,287 — 34,287 Common stocks 29,712 — — 29,712 Total equity securities 137,079 34,287 — 171,366 Short-term investments 16,909 9,731 — 26,640 Total $ 170,964 $ 1,998,842 $ — $ 2,169,806 December 31, 2022 Level 1 Level 2 Level 3 Total (in thousands) Assets Fixed maturities: U.S. Treasury securities and obligations of U.S. government agencies $ 16,741 $ — $ — $ 16,741 Obligations of states, municipalities and political subdivisions — 204,632 — 204,632 Corporate and other securities — 832,892 — 832,892 Asset-backed securities — 353,006 — 353,006 Residential mortgage-backed securities — 293,962 — 293,962 Commercial mortgage-backed securities — 58,867 — 58,867 Total fixed-maturity securities 16,741 1,743,359 — 1,760,100 Equity securities: Exchange traded funds 104,202 — — 104,202 Non-redeemable preferred stock — 38,162 — 38,162 Common stocks 10,107 — — 10,107 Total equity securities 114,309 38,162 — 152,471 Short-term investments 31,366 9,971 — 41,337 Total $ 162,416 $ 1,791,492 $ — $ 1,953,908 There were no assets or liabilities measured at fair value on a nonrecurring basis as of March 31, 2023 or December 31, 2022. The carrying amount of the Company's 5.15% Series A Senior Notes was $125.0 million, less debt issuance cost, and the corresponding estimated fair value was $120.9 million and $117.2 million at March 31, 2023 and December 31, 2022, respectively. The fair value measurement was determined using a discounted cash flow analysis that factors in current market yields for comparable borrowing arrangements under the Company's credit profile. Since this methodology is based upon market yields for comparable arrangements, the measurement is categorized as Level 2. The estimated fair value of outstanding borrowings under the Company's revolving Credit Facility approximated its carrying value at March 31, 2023 and December 31, 2022. See Note 13 for further information regarding the Company's debt arrangements. |
Credit Losses
Credit Losses | 3 Months Ended |
Mar. 31, 2023 | |
Credit Loss [Abstract] | |
Credit Loss, Financial Instrument | Premiums receivable Premiums receivable balances are carried at face value, net of any allowance for credit losses. The allowance for credit losses represents an estimate of amounts considered uncollectible based on the Company’s assessment of the collectability of receivables that are past due. The estimate considers historical loss data, current and future economic conditions and specific identification of collectability concerns, where applicable. The following table presents the change in the allowance for credit losses for premiums receivable for the three months ended March 31, 2023 and 2022: Three Months Ended March 31, 2023 2022 (in thousands) Beginning balance $ 8,067 $ 3,391 Current period change for estimated uncollectible premiums 2,407 2,016 Write-offs of uncollectible premiums receivable (347) (366) Ending balance $ 10,127 $ 5,041 |
Deferred Policy Acquisition Cos
Deferred Policy Acquisition Costs | 3 Months Ended |
Mar. 31, 2023 | |
Deferred Policy Acquisition Costs Disclosures [Abstract] | |
Deferred Policy Acquisition Costs | Deferred Policy Acquisition Costs The following table presents the amounts of policy acquisition costs deferred and amortized for the three months ended March 31, 2023 and 2022: Three Months Ended March 31, 2023 2022 (in thousands) Balance, beginning of period $ 61,594 $ 41,968 Policy acquisition costs deferred: Direct commissions 51,364 35,860 Ceding commissions (17,378) (8,545) Other underwriting and policy acquisition costs 2,646 1,988 Policy acquisition costs deferred 36,632 29,303 Amortization of net policy acquisition costs (28,782) (23,788) Balance, end of period $ 69,444 $ 47,483 Amortization of net policy acquisition costs is included in the line item "Underwriting, acquisition and insurance expenses" in the accompanying consolidated statements of income and comprehensive income. |
Property and Equipment
Property and Equipment | 3 Months Ended |
Mar. 31, 2023 | |
Property and Equipment [Abstract] | |
Property and Equipment Disclosure [Text Block] | Property and Equipment, Net Property and equipment are included in "other assets" in the accompanying consolidated balance sheets and consist of the following: March 31, 2023 December 31, 2022 (in thousands) Building $ 36,870 $ 33,065 Parking deck 5,072 5,072 Land 3,068 3,068 Equipment 3,558 3,444 Software 12,305 11,410 Furniture and fixtures 3,011 2,615 Land improvements 474 474 Leasehold improvements 67 — Construction in progress - building — 2,618 64,425 61,766 Accumulated depreciation (9,027) (8,291) Total property and equipment, net $ 55,398 $ 53,475 |
Underwriting, Acquisition and I
Underwriting, Acquisition and Insurance Expenses | 3 Months Ended |
Mar. 31, 2023 | |
Underwriting, Acquisition and Insurance Expenses [Abstract] | |
Underwriting, acquisition and insurance expenses | Underwriting, Acquisition and Insurance Expenses Underwriting, acquisition and insurance expenses for the three months ended March 31, 2023 and 2022 consist of the following: Three Months Ended March 31, 2023 2022 (in thousands) Underwriting, acquisition and insurance expenses incurred: Direct commissions $ 43,169 $ 29,951 Ceding commissions (16,559) (7,829) Other underwriting expenses 19,935 16,423 Total $ 46,545 $ 38,545 Other underwriting expenses within underwriting, acquisition and insurance expenses included salaries, bonus and employee benefits expenses of $19.3 million and $15.0 million for the three months ended March 31, 2023 and 2022, respectively. |
Stock-based Compensation
Stock-based Compensation | 3 Months Ended |
Mar. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-based Compensation | Stock-based CompensationOn July 27, 2016, the Kinsale Capital Group, Inc. 2016 Omnibus Incentive Plan (the "2016 Incentive Plan") became effective. The 2016 Incentive Plan, which is administered by the Compensation, Nominating and Corporate Governance Committee of the Company’s Board of Directors, provides for grants of stock options, restricted stock, restricted stock units and other stock-based awards to officers, employees, directors, independent contractors and consultants. The number of shares of common stock available for issuance under the 2016 Incentive Plan may not exceed 2,073,832. The total compensation cost that has been charged against income for share-based compensation arrangements was $2.0 million and $1.5 million for the three months ended March 31, 2023 and 2022, respectively. Restricted Stock Awards During the three months ended March 31, 2023, the Company granted restricted stock awards under the 2016 Incentive Plan. The restricted stock awards were valued on the date of grant and will vest over a period of 1 to 4 years corresponding to the anniversary date of the grants. The fair value of restricted stock awards was determined based on the closing trading price of the Company’s shares on the grant date or, if no shares were traded on the grant date, the last preceding date for which there was a sale of shares. Except for restrictions placed on the transferability of restricted stock, holders of unvested restricted stock have full stockholder’s rights, including voting rights and the right to receive dividends. Unvested shares of restricted stock awards and accrued dividends, if any, are forfeited upon the termination of service to or employment with the Company. A summary of restricted stock activity under the 2016 Incentive Plan for the three months ended March 31, 2023 is as follows: For the Three Months Ended March 31, 2023 Number of Shares Weighted Average Grant Date Fair Value per Share Non-vested outstanding at the beginning of the period 98,621 $ 182.37 Granted 50,515 $ 313.51 Vested (22,482) $ 205.80 Forfeited (725) $ 225.64 Non-vested outstanding at the end of the period 125,929 $ 230.54 Employees surrender shares to pay for withholding tax obligations resulting from any vesting of restricted stock awards. During the three months ended March 31, 2023, shares withheld for taxes in connection with the vesting of restricted stock awards totaled 6,628. The weighted average grant-date fair value per share of the Company's restricted stock awards granted during the three months ended March 31, 2023 and 2022 was $313.51 and $211.86, respectively. The fair value of restricted stock awards that vested during the three months ended March 31, 2023 and 2022 was $6.9 million and $2.3 million, respectively. As of March 31, 2023, the Company had $26.5 million of total unrecognized stock-based compensation expense expected to be charged to earnings over a weighted-average period of 3.2 years. Stock Options On July 27, 2016, the Board of Directors approved, and the Company granted, 1,036,916 stock options with an exercise price equal to the initial public offering price of $16.00 per share and a weighted-average grant-date fair value of $2.71 per share. The options have a maximum contractual term of 10 years and vested in 4 equal annual installments following the date of the grant. The value of the options granted was estimated at the date of grant using the Black-Scholes pricing model. A summary of option activity as of March 31, 2023, and changes during the period then ended is presented below: Number of Shares Weighted-Average Exercise Price Weighted-Average Remaining Years of Contractual Term Aggregate Intrinsic Value (in thousands) Outstanding at January 1, 2023 256,357 $ 16.00 Granted — — Forfeited — — Exercised (20,257) 16.00 Outstanding at March 31, 2023 236,100 $ 16.00 3.3 $ 67,088 Exercisable at March 31, 2023 236,100 $ 16.00 3.3 $ 67,088 |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 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 March 31, 2023 2022 (in thousands, except per share data) Net income $ 55,800 $ 31,791 Weighted average common shares outstanding - basic 23,008 22,753 Effect of potential dilutive securities: Conversion of stock options 234 291 Conversion of restricted stock 48 49 Weighted average common shares outstanding - diluted 23,290 23,093 Earnings per common share: Basic $ 2.43 $ 1.40 Diluted $ 2.40 $ 1.38 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company uses the estimated annual effective tax rate method for calculating its tax provision in interim periods, which represents the Company's best estimate of the effective tax rate expected for the full year. The estimated annual effective tax rate typically differs from the U.S. statutory tax rate, primarily as a result of tax-exempt investment income and any discrete items recognized during the period. The Company's effective tax rates were 18.4% and 18.2% for the three months ended March 31, 2023 and 2022, respectively. The effective tax rates were lower than the federal statutory rate of 21% due primarily to the tax benefits from stock-based compensation and from income generated by certain tax-exempt investments. |
Reserves for Unpaid Losses and
Reserves for Unpaid Losses and Loss Adjustment Expenses | 3 Months Ended |
Mar. 31, 2023 | |
Liability for Unpaid Claims and Claims Adjustment Expense, Activity in Liability [Abstract] | |
Reserves for Unpaid Losses and Loss Adjustment Expenses | Reserves For Unpaid Losses and Loss Adjustment Expenses The following table presents a reconciliation of consolidated beginning and ending reserves for unpaid losses and loss adjustment expenses: March 31, 2023 2022 (in thousands) Gross reserves for unpaid losses and loss adjustment expenses, beginning of year $ 1,238,402 $ 881,344 Less: reinsurance recoverable on unpaid losses 177,039 117,561 Net reserves for unpaid losses and loss adjustment expenses, beginning of year 1,061,363 763,783 Incurred losses and loss adjustment expenses: Current year 148,077 110,851 Prior years (9,043) (8,346) Total net losses and loss adjustment expenses incurred 139,034 102,505 Payments: Current year 1,452 1,142 Prior years 43,749 28,938 Total payments 45,201 30,080 Net reserves for unpaid losses and loss adjustment expenses, end of period 1,155,196 836,208 Reinsurance recoverable on unpaid losses 198,955 121,367 Gross reserves for unpaid losses and loss adjustment expenses, end of period $ 1,354,151 $ 957,575 During the three months ended March 31, 2023, the reserves for unpaid losses and loss adjustment expenses held at December 31, 2022 developed favorably by $9.0 million, of which $12.6 million was attributable to the 2021 and 2022 accident years due to lower emergence of reported losses than expected across most lines of business. This favorable development was offset in part by adverse development largely from the 2017 and 2019 accident years due primarily to long-tail property damage claims within the construction-related primary casualty business that are more exposed to the recent increase in inflation. During the three months ended March 31, 2022, the reserves for unpaid losses and loss adjustment expenses held at December 31, 2021 developed favorably by $8.3 million, of which $10.1 million was attributable to the 2020 and 2021 accident years due to lower than expected reported losses across most lines of business. This was offset by $2.0 million of unfavorable development from accident years 2016 and 2018 due to routine variability in reported losses. |
Reinsurance
Reinsurance | 3 Months Ended |
Mar. 31, 2023 | |
Reinsurance Disclosures [Abstract] | |
Reinsurance | Reinsurance The following table summarizes the effect of reinsurance on premiums written and earned for the three months ended March 31, 2023 and 2022: Three Months Ended March 31, 2023 2022 (in thousands) Premiums written: Direct $ 357,588 $ 245,513 Ceded (58,558) (29,015) Net written $ 299,030 $ 216,498 Premiums earned: Direct $ 293,536 $ 205,628 Ceded (56,378) (27,066) Net earned $ 237,158 $ 178,562 The following table summarizes ceded losses and loss adjustment expenses for the three months ended March 31, 2023 and 2022: Three Months Ended March 31, 2023 2022 (in thousands) Ceded incurred losses and loss adjustment expenses $ 36,009 $ 9,636 The following table presents reinsurance recoverables on paid and unpaid losses as of March 31, 2023 and December 31, 2022: March 31, 2023 December 31, 2022 (in thousands) Reinsurance recoverables on paid losses $ 19,841 $ 43,415 Reinsurance recoverables on unpaid losses, net 198,955 177,039 Reinsurance recoverables, net $ 218,796 $ 220,454 |
Debt
Debt | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Debt | Debt Note Purchase and Private Shelf Agreement On July 22, 2022, the Company entered into a Note Purchase and Private Shelf Agreement (the “Note Purchase Agreement”) with PGIM, Inc. (“Prudential”) and the purchasers of the Series A Notes (as defined below), named in the Purchaser Schedule attached thereto (collectively, the “Note Purchasers”). Pursuant to the Note Purchase Agreement, on July 22, 2022, the Company issued $125.0 million aggregate principal amount of 5.15% Series A Senior Notes Due July 22, 2034 (collectively, the "Series A Notes”) to the Note Purchasers. The Note Purchase Agreement also provides for the issuance of additional shelf notes from time to time issued thereunder (the “Shelf Notes” and, together with the Series A Notes, the “Notes”) not to exceed $150.0 million of Notes outstanding thereunder. The proceeds of the Notes may be used, among other things, to fund surplus at Kinsale Insurance Company, or any other insurance subsidiary of the Company, refinance indebtedness and for general corporate purposes. The Series A Notes are senior unsecured obligations of the Company and rank pari passu with the Company’s Amended and Restated Credit Agreement. At March 31, 2023, there was $123.2 million outstanding under the Series A Notes, net of debt issuance costs of $1.8 million. The Note Purchase Agreement contains representations and affirmative and negative covenants, including financial covenants customary for agreements of this type, as well as customary events of default provisions. As of March 31, 2023, the Company was in compliance with all of its financial covenants under the Note Purchase Agreement. The Series A Notes bear interest at 5.15% per annum and mature on July 22, 2034, unless paid earlier by the Company. Should the Company elect to prepay the Series A Notes, such aggregate prepayment will include the applicable make-whole amount(s), as defined within the applicable Note Purchase Agreement. Principal payments are required annually beginning on July 22, 2030 in equal installments of $25.0 million through July 22, 2034. Credit Agreement On May 28, 2019, the Company entered into a Credit Agreement (the “Credit Agreement”) that provided the Company with a $50.0 million senior unsecured revolving credit facility (the “Credit Facility”) and an uncommitted accordion feature that permits the Company to increase the commitments by an additional $30.0 million. On July 22, 2022, the Company entered into an Amended and Restated Credit Agreement, with JPMorgan Chase Bank, N.A., as administrative agent and as issuing bank, Truist Bank, as syndication agent, and the lenders party thereto (collectively, the “Lenders”). The Amended and Restated Credit Agreement extended the maturity date to July 22, 2027, and increased the aggregate commitment to $100.0 million, with the option to increase the aggregate commitment by $30.0 million, subject to the Company obtaining commitments from existing or new lenders and satisfying other conditions specified in the Amended and Restated Credit Agreement. The Company is required to pay a Commitment Fee Rate (as defined therein) of 0.25% on the average daily amount of the Available Revolving Commitment (as defined therein). Borrowings under the Amended and Restated Credit Agreement may be used for general corporate purposes (which may include, without limitation, to fund future growth, to finance working capital needs, to fund capital expenditures, and to refinance, redeem or repay indebtedness). At March 31, 2023, there was $72.6 million outstanding, net of debt issuance costs of $0.4 million, with a weighted average interest rate of 6.4%. The Amended and Restated Credit Agreement also contains representations and affirmative and negative covenants, including financial covenants customary for agreements of this type, as well as customary events of default provisions. As of March 31, 2023, the Company was in compliance with all of its financial covenants under the Credit Facility. The loans under the Amended and Restated Credit Agreement bear interest, at the Company's option, at a rate equal to the Adjusted Term SOFR Rate (as defined therein) plus 1.625% or the Alternate Base Rate (as defined therein) plus 0.625%. |
Other Comprehensive (Loss) Inco
Other Comprehensive (Loss) Income | 3 Months Ended |
Mar. 31, 2023 | |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Other Comprehensive Income | Other Comprehensive Income (Loss) The following table summarizes the components of other comprehensive income (loss) for the three months ended March 31, 2023 and 2022: Three Months Ended March 31, 2023 2022 (in thousands) Unrealized gains (losses) on fixed-maturity securities arising during the period, before income taxes $ 21,170 $ (80,485) Income tax (expense) benefit (4,446) 16,902 Unrealized gains (losses) arising during the period, net of income taxes 16,724 (63,583) Less reclassification adjustment: Net realized (losses) gains on fixed-maturity securities, before income taxes (912) 439 Income tax benefit (expense) 191 (92) Reclassification adjustment included in net income (721) 347 Change in allowance for credit losses on investments, before income taxes (81) — Income tax benefit 17 — Reclassification adjustment included in net income (64) — Other comprehensive income (loss) $ 17,509 $ (63,930) The sale or credit loss of an available-for-sale fixed-maturity security results in amounts being reclassified from accumulated other comprehensive loss to realized gains or losses in current period earnings. The related tax effect of the reclassification adjustment is recorded in income tax expense in current period earnings. See Note 2 for additional information. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events During the fourth quarter of 2022, the Company completed the purchase of real estate investment property for $76.6 million. The property comprises two office buildings totaling over 580,000 square feet situated on approximately 29 acres of land. During the second quarter of 2023, the Company initiated plans to sell certain parcels and one of the office buildings. Subsequent to March 31, 2023, the Company determined that the related assets met held-for-sale accounting criteria. Upon the determination to classify a property as held for sale, the Company ceases depreciation and amortization on the real estate property held for sale, as well as amortization of acquired in-place leases. The real estate property held for sale is classified separately on the condensed consolidated balance sheets and is recorded at the lesser of the carrying value or estimated fair value less estimated cost to sell. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of presentationThe unaudited condensed consolidated financial statements and notes have been prepared in accordance with U.S. generally accepted accounting principles ("U.S. GAAP") for interim financial information and do not contain all of the information and footnotes required by U.S. GAAP for complete financial statements. As such, these unaudited condensed consolidated interim financial statements should be read in conjunction with the audited consolidated financial statements of Kinsale Capital Group, Inc. and its subsidiaries ("the Company") included in the Annual Report on Form 10-K for the year ended December 31, 2022. 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. All significant intercompany balances and transactions have been eliminated in consolidation. Certain prior year amounts have been reclassified to conform to the current year's presentation. Interim results are not necessarily indicative of results of operations for the full year. |
Use of Estimates | Use of estimatesThe preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, if any, at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
New Accounting Pronouncements, Policy | Prospective accounting pronouncements There are no prospective accounting standards which, upon their effective date, would have a material impact on the Company's condensed consolidated financial statements. |
Investments (Tables)
Investments (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Investments [Abstract] | |
Available-for-sale Investments | The following tables summarize the available-for-sale investments at March 31, 2023 and December 31, 2022: March 31, 2023 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Allowance for Credit Losses Estimated Fair Value (in thousands) Fixed maturities: U.S. Treasury securities and obligations of U.S. government agencies $ 17,940 $ — $ (964) $ — $ 16,976 Obligations of states, municipalities and political subdivisions 206,449 327 (20,973) — 185,803 Corporate and other securities 1,008,098 1,803 (70,423) (447) 939,031 Asset-backed securities 484,384 830 (6,703) — 478,511 Residential mortgage-backed securities 341,064 52 (49,225) — 291,891 Commercial mortgage-backed securities 65,321 — (5,733) — 59,588 Total fixed-maturity investments $ 2,123,256 $ 3,012 $ (154,021) $ (447) $ 1,971,800 December 31, 2022 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Allowance for Credit Losses Estimated Fair Value (in thousands) Fixed maturities: U.S. Treasury securities and obligations of U.S. government agencies $ 17,934 $ — $ (1,193) $ — $ 16,741 Obligations of states, municipalities and political subdivisions 230,746 330 (26,444) — 204,632 Corporate and other securities 909,285 730 (76,757) (366) 832,892 Asset-backed securities 361,248 292 (8,534) — 353,006 Residential mortgage-backed securities 349,066 52 (55,156) — 293,962 Commercial mortgage-backed securities 65,353 — (6,486) — 58,867 Total fixed-maturity investments $ 1,933,632 $ 1,404 $ (174,570) $ (366) $ 1,760,100 |
Debt Securities, Available-for-Sale, Allowance for Credit Loss | The following table presents changes in the allowance for expected credit losses on available-for-sale securities: Three Months Ended March 31, 2023 2022 (in thousands) Beginning balance $ 366 $ — Increase to allowance from securities for which credit losses were not previously recorded — — Reduction from securities sold during the period — — Net increase (decrease) from securities that had an allowance at the beginning of the period 81 — Ending balance $ 447 $ — |
Available-for-sale Securities in an Unrealized Loss Position | The following tables summarize gross unrealized losses and estimated fair value for available-for-sale investments by length of time that the securities have continuously been in an unrealized loss position: March 31, 2023 Less than 12 Months 12 Months or Longer Total Estimated Fair Value Gross Unrealized Losses Estimated Fair Value Gross Unrealized Losses Estimated Fair Value Gross Unrealized Losses (in thousands) Fixed maturities: U.S. Treasury securities and obligations of the U.S. government agencies $ 3,344 $ (27) $ 13,632 $ (937) $ 16,976 $ (964) Obligations of states, municipalities and political subdivisions 73,448 (3,397) 62,164 (17,576) 135,612 (20,973) Corporate and other securities 380,272 (7,621) 386,348 (62,802) 766,620 (70,423) Asset-backed securities 163,407 (1,236) 201,074 (5,467) 364,481 (6,703) Residential mortgage-backed securities 9,915 (465) 281,614 (48,760) 291,529 (49,225) Commercial mortgage-backed securities 6,351 (353) 53,237 (5,380) 59,588 (5,733) Total fixed-maturity investments $ 636,737 $ (13,099) $ 998,069 $ (140,922) $ 1,634,806 $ (154,021) December 31, 2022 Less than 12 Months 12 Months or Longer Total Estimated Fair Value Gross Unrealized Losses Estimated Fair Value Gross Unrealized Losses Estimated Fair Value Gross Unrealized Losses (in thousands) Fixed maturities: U.S. Treasury securities and obligations of U.S. government agencies $ 10,538 $ (447) $ 6,204 $ (746) $ 16,742 $ (1,193) Obligations of states, municipalities and political subdivisions 141,460 (20,347) 17,314 (6,097) 158,774 (26,444) Corporate and other securities 583,619 (42,675) 156,148 (34,082) 739,767 (76,757) Asset-backed securities 216,487 (5,429) 97,703 (3,105) 314,190 (8,534) Residential mortgage-backed securities 98,909 (12,324) 194,773 (42,832) 293,682 (55,156) Commercial mortgage-backed securities 50,666 (4,732) 8,201 (1,754) 58,867 (6,486) Total fixed-maturity investments $ 1,101,679 $ (85,954) $ 480,343 $ (88,616) $ 1,582,022 $ (174,570) |
Contractual Maturities of Available-for-sale Fixed Maturity Securities | The amortized cost and estimated fair value of available-for-sale fixed-maturity securities at March 31, 2023 are summarized, by contractual maturity, as follows: March 31, 2023 Amortized Estimated Cost Fair Value (in thousands) Due in one year or less $ 55,240 $ 54,255 Due after one year through five years 724,427 703,547 Due after five years through ten years 214,934 189,970 Due after ten years 237,886 194,038 Asset-backed securities 484,384 478,511 Residential mortgage-backed securities 341,064 291,891 Commercial mortgage-backed securities 65,321 59,588 Total fixed-maturity securities $ 2,123,256 $ 1,971,800 |
Schedule of Real Estate Properties | Real estate investments consisted of the following: March 31, 2023 December 31, 2022 (in thousands) Building $ 45,253 $ 44,931 Land 18,166 17,946 Intangible in-place lease 9,776 9,749 Site improvements 2,714 2,686 Parking deck 1,314 1,311 77,223 76,623 Accumulated depreciation (748) (236) Total real estate investments, net $ 76,475 $ 76,387 |
Net Investment Income | The following table presents the components of net investment income for the three months ended March 31, 2023 and 2022: Three Months Ended March 31, 2023 2022 (in thousands) Interest: Taxable bonds $ 18,104 $ 7,795 Tax exempt municipal bonds 636 857 Cash equivalents and short-term investments 713 19 Dividends on equity securities 1,143 1,030 Real estate investment income 1,358 — Gross investment income 21,954 9,701 Investment expenses (1,259) (613) Net investment income $ 20,695 $ 9,088 Investment expenses included depreciation expense related to real estate investments of $0.5 million for the three months ended March 31, 2023. There was no depreciation of real estate investments for the three months ended March 31, 2022. |
Realized Gain (Loss) on Investments | The following table presents realized investment gains and losses for the three months ended March 31, 2023 and 2022: Three Months Ended March 31, 2023 2022 (in thousands) Fixed-maturity securities: Realized gains $ 399 $ 842 Realized losses (1,259) (365) Net realized (losses) gains from fixed-maturity securities (860) 477 Equity securities: Realized gains 15 — Realized losses (3,800) (148) Net realized losses from equity securities (3,785) (148) Realized losses from the sales of short-term investments (7) (34) Net realized investment (losses) gains $ (4,652) $ 295 The net realized gains or losses on sales of equity securities represent the total gains or losses from the purchase dates of the equity securities. The change in unrealized gains (losses) in the consolidated statement of income consists of two components: (1) the reversal of the gain or loss recognized in previous periods on equity securities sold and (2) the change in unrealized gain or loss resulting from mark-to-market adjustments on equity securities still held. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Assets Measured at Fair Value on a Recurring Basis | The following tables present the balances of assets measured at fair value on a recurring basis as of March 31, 2023 and December 31, 2022, by level within the fair value hierarchy: March 31, 2023 Level 1 Level 2 Level 3 Total (in thousands) Assets Fixed maturities: U.S. Treasury securities and obligations of U.S. government agencies $ 16,976 $ — $ — $ 16,976 Obligations of states, municipalities and political subdivisions — 185,803 — 185,803 Corporate and other securities — 939,031 — 939,031 Asset-backed securities — 478,511 — 478,511 Residential mortgage-backed securities — 291,891 — 291,891 Commercial mortgage-backed securities — 59,588 — 59,588 Total fixed-maturity securities 16,976 1,954,824 — 1,971,800 Equity securities: Exchange traded funds 107,367 — — 107,367 Non-redeemable preferred stock — 34,287 — 34,287 Common stocks 29,712 — — 29,712 Total equity securities 137,079 34,287 — 171,366 Short-term investments 16,909 9,731 — 26,640 Total $ 170,964 $ 1,998,842 $ — $ 2,169,806 December 31, 2022 Level 1 Level 2 Level 3 Total (in thousands) Assets Fixed maturities: U.S. Treasury securities and obligations of U.S. government agencies $ 16,741 $ — $ — $ 16,741 Obligations of states, municipalities and political subdivisions — 204,632 — 204,632 Corporate and other securities — 832,892 — 832,892 Asset-backed securities — 353,006 — 353,006 Residential mortgage-backed securities — 293,962 — 293,962 Commercial mortgage-backed securities — 58,867 — 58,867 Total fixed-maturity securities 16,741 1,743,359 — 1,760,100 Equity securities: Exchange traded funds 104,202 — — 104,202 Non-redeemable preferred stock — 38,162 — 38,162 Common stocks 10,107 — — 10,107 Total equity securities 114,309 38,162 — 152,471 Short-term investments 31,366 9,971 — 41,337 Total $ 162,416 $ 1,791,492 $ — $ 1,953,908 |
Credit Losses (Tables)
Credit Losses (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Credit Loss [Abstract] | |
Premium Receivable, Allowance for Credit Loss | The following table presents the change in the allowance for credit losses for premiums receivable for the three months ended March 31, 2023 and 2022: Three Months Ended March 31, 2023 2022 (in thousands) Beginning balance $ 8,067 $ 3,391 Current period change for estimated uncollectible premiums 2,407 2,016 Write-offs of uncollectible premiums receivable (347) (366) Ending balance $ 10,127 $ 5,041 |
Deferred Policy Acquisition C_2
Deferred Policy Acquisition Costs (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Deferred Policy Acquisition Costs Disclosures [Abstract] | |
Deferred Policy Acquisition Costs | The following table presents the amounts of policy acquisition costs deferred and amortized for the three months ended March 31, 2023 and 2022: Three Months Ended March 31, 2023 2022 (in thousands) Balance, beginning of period $ 61,594 $ 41,968 Policy acquisition costs deferred: Direct commissions 51,364 35,860 Ceding commissions (17,378) (8,545) Other underwriting and policy acquisition costs 2,646 1,988 Policy acquisition costs deferred 36,632 29,303 Amortization of net policy acquisition costs (28,782) (23,788) Balance, end of period $ 69,444 $ 47,483 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Property and Equipment [Abstract] | |
Property and Equipment | Property and equipment are included in "other assets" in the accompanying consolidated balance sheets and consist of the following: March 31, 2023 December 31, 2022 (in thousands) Building $ 36,870 $ 33,065 Parking deck 5,072 5,072 Land 3,068 3,068 Equipment 3,558 3,444 Software 12,305 11,410 Furniture and fixtures 3,011 2,615 Land improvements 474 474 Leasehold improvements 67 — Construction in progress - building — 2,618 64,425 61,766 Accumulated depreciation (9,027) (8,291) Total property and equipment, net $ 55,398 $ 53,475 |
Underwriting, Acquisition and_2
Underwriting, Acquisition and Insurance Expenses (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Underwriting, Acquisition and Insurance Expenses [Abstract] | |
Underwriting, acquisition and insurance expenses | Underwriting, acquisition and insurance expenses for the three months ended March 31, 2023 and 2022 consist of the following: Three Months Ended March 31, 2023 2022 (in thousands) Underwriting, acquisition and insurance expenses incurred: Direct commissions $ 43,169 $ 29,951 Ceding commissions (16,559) (7,829) Other underwriting expenses 19,935 16,423 Total $ 46,545 $ 38,545 |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Restricted Stock Activity | A summary of restricted stock activity under the 2016 Incentive Plan for the three months ended March 31, 2023 is as follows: For the Three Months Ended March 31, 2023 Number of Shares Weighted Average Grant Date Fair Value per Share Non-vested outstanding at the beginning of the period 98,621 $ 182.37 Granted 50,515 $ 313.51 Vested (22,482) $ 205.80 Forfeited (725) $ 225.64 Non-vested outstanding at the end of the period 125,929 $ 230.54 |
Stock Options Activity | A summary of option activity as of March 31, 2023, and changes during the period then ended is presented below: Number of Shares Weighted-Average Exercise Price Weighted-Average Remaining Years of Contractual Term Aggregate Intrinsic Value (in thousands) Outstanding at January 1, 2023 256,357 $ 16.00 Granted — — Forfeited — — Exercised (20,257) 16.00 Outstanding at March 31, 2023 236,100 $ 16.00 3.3 $ 67,088 Exercisable at March 31, 2023 236,100 $ 16.00 3.3 $ 67,088 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
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 March 31, 2023 2022 (in thousands, except per share data) Net income $ 55,800 $ 31,791 Weighted average common shares outstanding - basic 23,008 22,753 Effect of potential dilutive securities: Conversion of stock options 234 291 Conversion of restricted stock 48 49 Weighted average common shares outstanding - diluted 23,290 23,093 Earnings per common share: Basic $ 2.43 $ 1.40 Diluted $ 2.40 $ 1.38 |
Reserves for Unpaid Losses an_2
Reserves for Unpaid Losses and Loss Adjustment Expenses (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Liability for Unpaid Claims and Claims Adjustment Expense, Activity in Liability [Abstract] | |
Schedule of Unpaid Losses and Loss Adjustment Expenses | The following table presents a reconciliation of consolidated beginning and ending reserves for unpaid losses and loss adjustment expenses: March 31, 2023 2022 (in thousands) Gross reserves for unpaid losses and loss adjustment expenses, beginning of year $ 1,238,402 $ 881,344 Less: reinsurance recoverable on unpaid losses 177,039 117,561 Net reserves for unpaid losses and loss adjustment expenses, beginning of year 1,061,363 763,783 Incurred losses and loss adjustment expenses: Current year 148,077 110,851 Prior years (9,043) (8,346) Total net losses and loss adjustment expenses incurred 139,034 102,505 Payments: Current year 1,452 1,142 Prior years 43,749 28,938 Total payments 45,201 30,080 Net reserves for unpaid losses and loss adjustment expenses, end of period 1,155,196 836,208 Reinsurance recoverable on unpaid losses 198,955 121,367 Gross reserves for unpaid losses and loss adjustment expenses, end of period $ 1,354,151 $ 957,575 |
Reinsurance (Tables)
Reinsurance (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Reinsurance Disclosures [Abstract] | |
Effects of Reinsurance | The following table summarizes the effect of reinsurance on premiums written and earned for the three months ended March 31, 2023 and 2022: Three Months Ended March 31, 2023 2022 (in thousands) Premiums written: Direct $ 357,588 $ 245,513 Ceded (58,558) (29,015) Net written $ 299,030 $ 216,498 Premiums earned: Direct $ 293,536 $ 205,628 Ceded (56,378) (27,066) Net earned $ 237,158 $ 178,562 |
Effects of Reinsurance on Losses | The following table summarizes ceded losses and loss adjustment expenses for the three months ended March 31, 2023 and 2022: Three Months Ended March 31, 2023 2022 (in thousands) Ceded incurred losses and loss adjustment expenses $ 36,009 $ 9,636 |
Reinsurance Recoverables | The following table presents reinsurance recoverables on paid and unpaid losses as of March 31, 2023 and December 31, 2022: March 31, 2023 December 31, 2022 (in thousands) Reinsurance recoverables on paid losses $ 19,841 $ 43,415 Reinsurance recoverables on unpaid losses, net 198,955 177,039 Reinsurance recoverables, net $ 218,796 $ 220,454 |
Other Comprehensive (Loss) In_2
Other Comprehensive (Loss) Income (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Comprehensive Income (Loss) | The following table summarizes the components of other comprehensive income (loss) for the three months ended March 31, 2023 and 2022: Three Months Ended March 31, 2023 2022 (in thousands) Unrealized gains (losses) on fixed-maturity securities arising during the period, before income taxes $ 21,170 $ (80,485) Income tax (expense) benefit (4,446) 16,902 Unrealized gains (losses) arising during the period, net of income taxes 16,724 (63,583) Less reclassification adjustment: Net realized (losses) gains on fixed-maturity securities, before income taxes (912) 439 Income tax benefit (expense) 191 (92) Reclassification adjustment included in net income (721) 347 Change in allowance for credit losses on investments, before income taxes (81) — Income tax benefit 17 — Reclassification adjustment included in net income (64) — Other comprehensive income (loss) $ 17,509 $ (63,930) |
Investments Investments (Availa
Investments Investments (Available for Sale) (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | Dec. 31, 2021 |
Debt Securities, Available-for-sale [Line Items] | ||||
Total fixed maturities, Amortized Cost | $ 2,123,256 | $ 1,933,632 | ||
Gross Unrealized Holding Gains | 3,012 | 1,404 | ||
Gross Unrealized Holding Losses | 154,021 | 174,570 | ||
Allowance for Credit Losses | (447) | (366) | $ 0 | $ 0 |
Estimated Fair Value | 1,971,800 | 1,760,100 | ||
U.S. Treasury securities and obligations of U.S. government agencies | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Total fixed maturities, Amortized Cost | 17,940 | 17,934 | ||
Gross Unrealized Holding Gains | 0 | 0 | ||
Gross Unrealized Holding Losses | 964 | 1,193 | ||
Allowance for Credit Losses | 0 | 0 | ||
Estimated Fair Value | 16,976 | 16,741 | ||
Obligations of states, municipalities and political subdivisions | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Total fixed maturities, Amortized Cost | 206,449 | 230,746 | ||
Gross Unrealized Holding Gains | 327 | 330 | ||
Gross Unrealized Holding Losses | 20,973 | 26,444 | ||
Allowance for Credit Losses | 0 | 0 | ||
Estimated Fair Value | 185,803 | 204,632 | ||
Corporate and other securities | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Total fixed maturities, Amortized Cost | 1,008,098 | 909,285 | ||
Gross Unrealized Holding Gains | 1,803 | 730 | ||
Gross Unrealized Holding Losses | 70,423 | 76,757 | ||
Allowance for Credit Losses | (447) | (366) | ||
Estimated Fair Value | 939,031 | 832,892 | ||
Asset-backed securities | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Total fixed maturities, Amortized Cost | 484,384 | 361,248 | ||
Gross Unrealized Holding Gains | 830 | 292 | ||
Gross Unrealized Holding Losses | 6,703 | 8,534 | ||
Allowance for Credit Losses | 0 | 0 | ||
Estimated Fair Value | 478,511 | 353,006 | ||
Residential mortgage-backed securities | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Total fixed maturities, Amortized Cost | 341,064 | 349,066 | ||
Gross Unrealized Holding Gains | 52 | 52 | ||
Gross Unrealized Holding Losses | 49,225 | 55,156 | ||
Allowance for Credit Losses | 0 | 0 | ||
Estimated Fair Value | 291,891 | 293,962 | ||
Commercial mortgage-backed securities | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Total fixed maturities, Amortized Cost | 65,321 | 65,353 | ||
Gross Unrealized Holding Gains | 0 | 0 | ||
Gross Unrealized Holding Losses | 5,733 | 6,486 | ||
Allowance for Credit Losses | 0 | 0 | ||
Estimated Fair Value | $ 59,588 | $ 58,867 |
Investments Available-for-Sale
Investments Available-for-Sale Securities in a Loss Position (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 USD ($) security | Mar. 31, 2022 USD ($) | Dec. 31, 2022 USD ($) | |
Debt Securities, Available-for-sale [Line Items] | |||
Less than 12 Months, Estimated Fair Value | $ 636,737 | $ 1,101,679 | |
Less than 12 months, gross unrealized holding losses | 13,099 | 85,954 | |
12 Months or Longer, Estimated Fair Value | 998,069 | 480,343 | |
12 Months or Longer, Gross Unrealized Holding Losses | 140,922 | 88,616 | |
Total Estimated Fair Value | 1,634,806 | 1,582,022 | |
Total Gross Unrealized Holding Losses | 154,021 | 174,570 | |
Beginning balance | 366 | $ 0 | |
Increase to allowance from securities for which credit losses were not previously recorded | 0 | 0 | |
Reduction from securities sold during the period | 0 | 0 | |
Net increase (decrease) from securities that had an allowance at the beginning of the period | 81 | 0 | |
Ending balance | $ 447 | $ 0 | |
Debt Securities Available For Sale Allowance For Credit Loss Number Of Securities | security | 7 | ||
U.S. Treasury securities and obligations of U.S. government agencies | |||
Debt Securities, Available-for-sale [Line Items] | |||
Less than 12 Months, Estimated Fair Value | $ 3,344 | 10,538 | |
Less than 12 months, gross unrealized holding losses | 27 | 447 | |
12 Months or Longer, Estimated Fair Value | 13,632 | 6,204 | |
12 Months or Longer, Gross Unrealized Holding Losses | 937 | 746 | |
Total Estimated Fair Value | 16,976 | 16,742 | |
Total Gross Unrealized Holding Losses | 964 | 1,193 | |
Beginning balance | 0 | ||
Ending balance | 0 | ||
Obligations of states, municipalities and political subdivisions [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Less than 12 Months, Estimated Fair Value | 73,448 | 141,460 | |
Less than 12 months, gross unrealized holding losses | 3,397 | 20,347 | |
12 Months or Longer, Estimated Fair Value | 62,164 | 17,314 | |
12 Months or Longer, Gross Unrealized Holding Losses | 17,576 | 6,097 | |
Total Estimated Fair Value | 135,612 | 158,774 | |
Total Gross Unrealized Holding Losses | 20,973 | 26,444 | |
Beginning balance | 0 | ||
Ending balance | 0 | ||
Corporate and other securities [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Less than 12 Months, Estimated Fair Value | 380,272 | 583,619 | |
Less than 12 months, gross unrealized holding losses | 7,621 | 42,675 | |
12 Months or Longer, Estimated Fair Value | 386,348 | 156,148 | |
12 Months or Longer, Gross Unrealized Holding Losses | 62,802 | 34,082 | |
Total Estimated Fair Value | 766,620 | 739,767 | |
Total Gross Unrealized Holding Losses | 70,423 | 76,757 | |
Beginning balance | 366 | ||
Ending balance | 447 | ||
Asset-backed securities [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Less than 12 Months, Estimated Fair Value | 163,407 | 216,487 | |
Less than 12 months, gross unrealized holding losses | 1,236 | 5,429 | |
12 Months or Longer, Estimated Fair Value | 201,074 | 97,703 | |
12 Months or Longer, Gross Unrealized Holding Losses | 5,467 | 3,105 | |
Total Estimated Fair Value | 364,481 | 314,190 | |
Total Gross Unrealized Holding Losses | 6,703 | 8,534 | |
Beginning balance | 0 | ||
Ending balance | 0 | ||
Residential mortgage-backed securities [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Less than 12 Months, Estimated Fair Value | 9,915 | 98,909 | |
Less than 12 months, gross unrealized holding losses | 465 | 12,324 | |
12 Months or Longer, Estimated Fair Value | 281,614 | 194,773 | |
12 Months or Longer, Gross Unrealized Holding Losses | 48,760 | 42,832 | |
Total Estimated Fair Value | 291,529 | 293,682 | |
Total Gross Unrealized Holding Losses | 49,225 | 55,156 | |
Beginning balance | 0 | ||
Ending balance | 0 | ||
Commercial mortgage-backed securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Less than 12 Months, Estimated Fair Value | 6,351 | 50,666 | |
Less than 12 months, gross unrealized holding losses | 353 | 4,732 | |
12 Months or Longer, Estimated Fair Value | 53,237 | 8,201 | |
12 Months or Longer, Gross Unrealized Holding Losses | 5,380 | 1,754 | |
Total Estimated Fair Value | 59,588 | 58,867 | |
Total Gross Unrealized Holding Losses | 5,733 | $ 6,486 | |
Beginning balance | 0 | ||
Ending balance | $ 0 |
Investments Available-for-Sal_2
Investments Available-for-Sale Securities in a Loss Position Narrative (Details) $ in Thousands | Mar. 31, 2023 USD ($) Rate | Dec. 31, 2022 USD ($) |
Debt Securities, Available-for-sale [Line Items] | ||
Number of available-for-sale securities in unrealized loss positions | 897 | |
Total Estimated Fair Value | $ 1,634,806 | $ 1,582,022 |
Gross Unrealized Losses | $ 154,021 | $ 174,570 |
Number of available-for-sale securities in unrealized loss positions, greater than one year | 569 | |
Fixed maturities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale securities, percentage of securities with ratings of A minus or better | Rate | 80.30% |
Investments Contractual Maturit
Investments Contractual Maturities of Available-for-Sale Fixed Maturity Securities (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Amortized Cost | ||
Due in one year or less, Amortized Cost | $ 55,240 | |
Due after one year through five years, Amortized Cost | 724,427 | |
Due after five years through ten years, Amortized Cost | 214,934 | |
Due after ten years, Amortized Cost | 237,886 | |
Total fixed maturities, Amortized Cost | 2,123,256 | $ 1,933,632 |
Estimated Fair Value | ||
Due in one year or less, Estimated Fair Value | 54,255 | |
Due after one year through five years, Estimated Fair Value | 703,547 | |
Due after five years through ten years, Estimated Fair Value | 189,970 | |
Due after ten years, Estimated Fair Value | 194,038 | |
Estimated Fair Value | 1,971,800 | 1,760,100 |
Asset-backed securities [Member] | ||
Amortized Cost | ||
Without single maturity date, Amortized Cost | 484,384 | |
Total fixed maturities, Amortized Cost | 484,384 | 361,248 |
Estimated Fair Value | ||
Without single maturity date, Estimated Fair Value | 478,511 | |
Estimated Fair Value | 478,511 | 353,006 |
Residential mortgage-backed securities [Member] | ||
Amortized Cost | ||
Without single maturity date, Amortized Cost | 341,064 | |
Total fixed maturities, Amortized Cost | 341,064 | 349,066 |
Estimated Fair Value | ||
Without single maturity date, Estimated Fair Value | 291,891 | |
Estimated Fair Value | 291,891 | 293,962 |
Commercial mortgage-backed securities | ||
Amortized Cost | ||
Without single maturity date, Amortized Cost | 65,321 | |
Total fixed maturities, Amortized Cost | 65,321 | 65,353 |
Estimated Fair Value | ||
Without single maturity date, Estimated Fair Value | 59,588 | |
Estimated Fair Value | $ 59,588 | $ 58,867 |
Investments Net Investment Inco
Investments Net Investment Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Components of Net Investment Income [Abstract] | ||
Taxable bonds | $ 18,104 | $ 7,795 |
Tax exempt municipal bonds | 636 | 857 |
Cash equivalents and short-term investments | 713 | 19 |
Dividends on equity securities | 1,143 | 1,030 |
Real estate investment income | 1,358 | 0 |
Gross investment income | 21,954 | 9,701 |
Investment expenses | (1,259) | (613) |
Net investment income | $ 20,695 | $ 9,088 |
Investments Realized Gains (Los
Investments Realized Gains (Losses) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Debt and Equity Securities, Realized Gain (Loss) [Abstract] | ||
Realized gains, fixed-maturity securities | $ 399 | $ 842 |
Realized losses, fixed-maturity securities | (1,259) | (365) |
Net realized (losses) gains from fixed-maturity securities | (860) | 477 |
Realized gains, equity securities | 15 | 0 |
Realized losses, equity securities | (3,800) | (148) |
Net realized losses from equity securities | (3,785) | (148) |
Realized losses from the sales of short-term investments | (7) | (34) |
Net realized investment (losses) gains | $ (4,652) | $ 295 |
Investments Unrealized Gains (L
Investments Unrealized Gains (Losses) on Investments (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | ||
Change in net unrealized gains (losses) on fixed-maturity securities | $ 22.2 | $ (80.9) |
Investments Investment Narrativ
Investments Investment Narrative (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Investments, Debt and Equity Securities [Abstract] | ||
Assets on deposit with state regulatory authorities | $ 5.9 | $ 5.9 |
Payable for investments purchased | $ 9.6 | $ 1.8 |
Investments (Details), Real Est
Investments (Details), Real Estate $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 USD ($) office_lease | Mar. 31, 2022 USD ($) | Dec. 31, 2022 USD ($) | |
Real Estate Properties [Line Items] | |||
Investment Building and Building Improvements | $ 45,253 | $ 44,931 | |
Land | 18,166 | 17,946 | |
Finite-Lived Intangible Asset, Acquired-in-Place Leases | 9,776 | 9,749 | |
Land Improvements | 2,714 | 2,686 | |
Investment in Real Estate - Parking Deck | 1,314 | 1,311 | |
Real Estate Investment Property, at Cost | 77,223 | 76,623 | |
Real Estate Investment Property, Accumulated Depreciation | (748) | (236) | |
Real Estate Investments, Net | $ 76,475 | $ 76,387 | |
Number of operating lease agreements as lessor | office_lease | 2 | ||
Lessor, Operating Lease, Payment to be Received, Year One | $ 3,300 | ||
Lessor, Operating Lease, Payment to be Received, Year Two | 4,500 | ||
Lessor, Operating Lease, Payment to be Received, Year Three | 4,600 | ||
Lessor, Operating Lease, Payment to be Received, Year Four | 4,800 | ||
Lessor, Operating Lease, Payment to be Received, Year Five | 4,900 | ||
Lessor, Operating Lease, Payment to be Received, after Year Five | 36,200 | ||
Real Estate Investment | |||
Real Estate Properties [Line Items] | |||
Depreciation, Depletion and Amortization | $ 500 | $ 0 | |
Minimum [Member] | |||
Real Estate Properties [Line Items] | |||
Lessor, Operating Lease, Term of Contract | 5 years | ||
Maximum [Member] | |||
Real Estate Properties [Line Items] | |||
Lessor, Operating Lease, Term of Contract | 12 years |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value Hierarchy (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Fair Value of Investments Measured on Recurring Basis [Line Items] | ||
Estimated Fair Value | $ 1,971,800 | $ 1,760,100 |
U.S. Treasury securities and obligations of U.S. government agencies | ||
Fair Value of Investments Measured on Recurring Basis [Line Items] | ||
Estimated Fair Value | 16,976 | 16,741 |
Obligations of states, municipalities and political subdivisions [Member] | ||
Fair Value of Investments Measured on Recurring Basis [Line Items] | ||
Estimated Fair Value | 185,803 | 204,632 |
Corporate and other securities [Member] | ||
Fair Value of Investments Measured on Recurring Basis [Line Items] | ||
Estimated Fair Value | 939,031 | 832,892 |
Asset-backed securities [Member] | ||
Fair Value of Investments Measured on Recurring Basis [Line Items] | ||
Estimated Fair Value | 478,511 | 353,006 |
Residential mortgage-backed securities [Member] | ||
Fair Value of Investments Measured on Recurring Basis [Line Items] | ||
Estimated Fair Value | 291,891 | 293,962 |
Commercial mortgage-backed securities | ||
Fair Value of Investments Measured on Recurring Basis [Line Items] | ||
Estimated Fair Value | 59,588 | 58,867 |
Recurring | ||
Fair Value of Investments Measured on Recurring Basis [Line Items] | ||
Fair value | 2,169,806 | 1,953,908 |
Recurring | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value of Investments Measured on Recurring Basis [Line Items] | ||
Fair value | 170,964 | 162,416 |
Recurring | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value of Investments Measured on Recurring Basis [Line Items] | ||
Fair value | 1,998,842 | 1,791,492 |
Recurring | Level 3 | ||
Fair Value of Investments Measured on Recurring Basis [Line Items] | ||
Fair value | 0 | 0 |
Recurring | Fixed maturities [Member] | ||
Fair Value of Investments Measured on Recurring Basis [Line Items] | ||
Estimated Fair Value | 1,971,800 | 1,760,100 |
Recurring | Fixed maturities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value of Investments Measured on Recurring Basis [Line Items] | ||
Estimated Fair Value | 16,976 | 16,741 |
Recurring | Fixed maturities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value of Investments Measured on Recurring Basis [Line Items] | ||
Estimated Fair Value | 1,954,824 | 1,743,359 |
Recurring | Fixed maturities [Member] | Level 3 | ||
Fair Value of Investments Measured on Recurring Basis [Line Items] | ||
Estimated Fair Value | 0 | 0 |
Recurring | U.S. Treasury securities and obligations of U.S. government agencies | ||
Fair Value of Investments Measured on Recurring Basis [Line Items] | ||
Estimated Fair Value | 16,976 | 16,741 |
Recurring | U.S. Treasury securities and obligations of U.S. government agencies | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value of Investments Measured on Recurring Basis [Line Items] | ||
Estimated Fair Value | 16,976 | 16,741 |
Recurring | U.S. Treasury securities and obligations of U.S. government agencies | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value of Investments Measured on Recurring Basis [Line Items] | ||
Estimated Fair Value | 0 | 0 |
Recurring | U.S. Treasury securities and obligations of U.S. government agencies | Level 3 | ||
Fair Value of Investments Measured on Recurring Basis [Line Items] | ||
Estimated Fair Value | 0 | 0 |
Recurring | Obligations of states, municipalities and political subdivisions [Member] | ||
Fair Value of Investments Measured on Recurring Basis [Line Items] | ||
Estimated Fair Value | 185,803 | 204,632 |
Recurring | Obligations of states, municipalities and political subdivisions [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value of Investments Measured on Recurring Basis [Line Items] | ||
Estimated Fair Value | 0 | 0 |
Recurring | Obligations of states, municipalities and political subdivisions [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value of Investments Measured on Recurring Basis [Line Items] | ||
Estimated Fair Value | 185,803 | 204,632 |
Recurring | Obligations of states, municipalities and political subdivisions [Member] | Level 3 | ||
Fair Value of Investments Measured on Recurring Basis [Line Items] | ||
Estimated Fair Value | 0 | 0 |
Recurring | Corporate and other securities [Member] | ||
Fair Value of Investments Measured on Recurring Basis [Line Items] | ||
Estimated Fair Value | 939,031 | 832,892 |
Recurring | Corporate and other securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value of Investments Measured on Recurring Basis [Line Items] | ||
Estimated Fair Value | 0 | 0 |
Recurring | Corporate and other securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value of Investments Measured on Recurring Basis [Line Items] | ||
Estimated Fair Value | 939,031 | 832,892 |
Recurring | Corporate and other securities [Member] | Level 3 | ||
Fair Value of Investments Measured on Recurring Basis [Line Items] | ||
Estimated Fair Value | 0 | 0 |
Recurring | Asset-backed securities [Member] | ||
Fair Value of Investments Measured on Recurring Basis [Line Items] | ||
Estimated Fair Value | 478,511 | 353,006 |
Recurring | Asset-backed securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value of Investments Measured on Recurring Basis [Line Items] | ||
Estimated Fair Value | 0 | 0 |
Recurring | Asset-backed securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value of Investments Measured on Recurring Basis [Line Items] | ||
Estimated Fair Value | 478,511 | 353,006 |
Recurring | Asset-backed securities [Member] | Level 3 | ||
Fair Value of Investments Measured on Recurring Basis [Line Items] | ||
Estimated Fair Value | 0 | 0 |
Recurring | Residential mortgage-backed securities [Member] | ||
Fair Value of Investments Measured on Recurring Basis [Line Items] | ||
Estimated Fair Value | 291,891 | 293,962 |
Recurring | Residential mortgage-backed securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value of Investments Measured on Recurring Basis [Line Items] | ||
Estimated Fair Value | 0 | 0 |
Recurring | Residential mortgage-backed securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value of Investments Measured on Recurring Basis [Line Items] | ||
Estimated Fair Value | 291,891 | 293,962 |
Recurring | Residential mortgage-backed securities [Member] | Level 3 | ||
Fair Value of Investments Measured on Recurring Basis [Line Items] | ||
Estimated Fair Value | 0 | 0 |
Recurring | Commercial mortgage-backed securities | ||
Fair Value of Investments Measured on Recurring Basis [Line Items] | ||
Estimated Fair Value | 59,588 | 58,867 |
Recurring | Commercial mortgage-backed securities | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value of Investments Measured on Recurring Basis [Line Items] | ||
Estimated Fair Value | 0 | 0 |
Recurring | Commercial mortgage-backed securities | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value of Investments Measured on Recurring Basis [Line Items] | ||
Estimated Fair Value | 59,588 | 58,867 |
Recurring | Commercial mortgage-backed securities | Level 3 | ||
Fair Value of Investments Measured on Recurring Basis [Line Items] | ||
Estimated Fair Value | 0 | 0 |
Recurring | Equity securities [Member] | ||
Fair Value of Investments Measured on Recurring Basis [Line Items] | ||
Fair value | 171,366 | 152,471 |
Recurring | Equity securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value of Investments Measured on Recurring Basis [Line Items] | ||
Fair value | 137,079 | 114,309 |
Recurring | Equity securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value of Investments Measured on Recurring Basis [Line Items] | ||
Fair value | 34,287 | 38,162 |
Recurring | Equity securities [Member] | Level 3 | ||
Fair Value of Investments Measured on Recurring Basis [Line Items] | ||
Fair value | 0 | 0 |
Recurring | Exchange traded funds [Member] | ||
Fair Value of Investments Measured on Recurring Basis [Line Items] | ||
Fair value | 107,367 | 104,202 |
Recurring | Exchange traded funds [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value of Investments Measured on Recurring Basis [Line Items] | ||
Fair value | 107,367 | 104,202 |
Recurring | Exchange traded funds [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value of Investments Measured on Recurring Basis [Line Items] | ||
Fair value | 0 | 0 |
Recurring | Exchange traded funds [Member] | Level 3 | ||
Fair Value of Investments Measured on Recurring Basis [Line Items] | ||
Fair value | 0 | 0 |
Recurring | Nonredeemable preferred stock [Member] | ||
Fair Value of Investments Measured on Recurring Basis [Line Items] | ||
Fair value | 34,287 | 38,162 |
Recurring | Nonredeemable preferred stock [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value of Investments Measured on Recurring Basis [Line Items] | ||
Fair value | 0 | 0 |
Recurring | Nonredeemable preferred stock [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value of Investments Measured on Recurring Basis [Line Items] | ||
Fair value | 34,287 | 38,162 |
Recurring | Nonredeemable preferred stock [Member] | Level 3 | ||
Fair Value of Investments Measured on Recurring Basis [Line Items] | ||
Fair value | 0 | 0 |
Recurring | Common Stock [Member] | ||
Fair Value of Investments Measured on Recurring Basis [Line Items] | ||
Fair value | 29,712 | 10,107 |
Recurring | Common Stock [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value of Investments Measured on Recurring Basis [Line Items] | ||
Fair value | 29,712 | 10,107 |
Recurring | Common Stock [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value of Investments Measured on Recurring Basis [Line Items] | ||
Fair value | 0 | 0 |
Recurring | Common Stock [Member] | Level 3 | ||
Fair Value of Investments Measured on Recurring Basis [Line Items] | ||
Fair value | 0 | 0 |
Recurring | Short-term Investments | ||
Fair Value of Investments Measured on Recurring Basis [Line Items] | ||
Fair value | 26,640 | 41,337 |
Recurring | Short-term Investments | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value of Investments Measured on Recurring Basis [Line Items] | ||
Fair value | 16,909 | 31,366 |
Recurring | Short-term Investments | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value of Investments Measured on Recurring Basis [Line Items] | ||
Fair value | 9,731 | 9,971 |
Recurring | Short-term Investments | Level 3 | ||
Fair Value of Investments Measured on Recurring Basis [Line Items] | ||
Fair value | $ 0 | $ 0 |
Fair Value Measures and Disclos
Fair Value Measures and Disclosures Narrative (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and Cash Equivalents, Fair Value Disclosure | $ 15,900 | $ 58,000 |
Nonrecurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value | 0 | 0 |
Liabilities measured at fair value | 0 | 0 |
Reported Value Measurement | 2034 Series A Notes | ||
Fair Value of Investments Measured on Recurring Basis [Line Items] | ||
Long-Term Debt, Fair Value | 125,000 | |
Estimate of Fair Value Measurement | Fair Value, Inputs, Level 2 [Member] | 2034 Series A Notes | ||
Fair Value of Investments Measured on Recurring Basis [Line Items] | ||
Long-Term Debt, Fair Value | $ 120,900 | $ 117,200 |
Credit Losses (Details)
Credit Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Credit Loss [Abstract] | ||
Beginning Balance | $ 8,067 | $ 3,391 |
Current period change for estimated uncollectible premiums | 2,407 | 2,016 |
Write-offs of uncollectible premiums receivable | (347) | (366) |
Ending Balance | $ 10,127 | $ 5,041 |
Deferred Policy Acquisition C_3
Deferred Policy Acquisition Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | ||
Balance, beginning of period | $ 61,594 | $ 41,968 |
Policy acquisition costs deferred: | ||
Direct commissions deferred | 51,364 | 35,860 |
Ceding commissions deferred | (17,378) | (8,545) |
Other underwriting and policy acquisition costs | 2,646 | 1,988 |
Policy acquisition costs deferred | 36,632 | 29,303 |
Amortization of net policy acquisition costs | (28,782) | (23,788) |
Balance, end of period | $ 69,444 | $ 47,483 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 64,425 | $ 61,766 |
Accumulated Depreciation | (9,027) | (8,291) |
Property, Plant and Equipment, Net | 55,398 | 53,475 |
Building | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 36,870 | 33,065 |
Parking | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 5,072 | 5,072 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 3,068 | 3,068 |
Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 3,558 | 3,444 |
Software Development | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 12,305 | 11,410 |
Furniture and Fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 3,011 | 2,615 |
Land Improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 474 | 474 |
Leasehold Improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 67 | 0 |
Construction in Progress | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 0 | $ 2,618 |
Underwriting, Acquisition and_3
Underwriting, Acquisition and Insurance Expenses (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Underwriting, Acquisition and Insurance Expenses [Abstract] | ||
Gross commissions | $ 43,169 | $ 29,951 |
Ceding commissions | (16,559) | (7,829) |
Other operating expenses | 19,935 | 16,423 |
Underwriting, acquisition, and insurance expenses | 46,545 | 38,545 |
Salaries, bonuses and employee benefits | $ 19,300 | $ 15,000 |
Stock-based Compensation Narrat
Stock-based Compensation Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation expense | $ 2 | $ 1.5 |
Maximum [Member] | 2016 Omnibus Incentive Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares available for issuance | 2,073,832 |
Stock-based Compensation Narr_2
Stock-based Compensation Narrative - Restricted Stock Awards (Details) - Restricted stock [Member] - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted average grant date fair value | $ 313.51 | $ 211.86 |
Fair value of restricted stock awards vested | $ 6.9 | $ 2.3 |
Unrecognized stock-based compensation expense | $ 26.5 | |
Compensation cost not yet recognized, period | 3 years 2 months 12 days | |
Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 1 year | |
Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 4 years |
Stock-based Compensation Restri
Stock-based Compensation Restrictive Stock Awards (Details) - Restricted stock [Member] - $ / shares | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Nonvested Restricted Stock, Number of Shares [Roll Forward] | ||
Nonvested outstanding at the beginning of the period, shares | 98,621 | |
Granted, shares | 50,515 | |
Vested, shares | (22,482) | |
Forfeited, shares | (725) | |
Nonvested outstanding at the end of the period, shares | 125,929 | |
Nonvested Restricted Stock, Weighted Average Grant Date Fair Value [Abstract] | ||
Nonvested outstanding at the beginning of the period | $ 182.37 | |
Granted | 313.51 | $ 211.86 |
Vested | 205.80 | |
Forfeited | 225.64 | |
Nonvested outstanding at the end of the period | $ 230.54 | |
Restricted shares withheld for taxes (shares) | 6,628 |
Stock-based Compensation Narr_3
Stock-based Compensation Narrative - Stock Options (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | ||
Jul. 27, 2016 | Mar. 31, 2023 | Mar. 31, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Intrinsic value of options exercised | $ 6 | $ 4.5 | |
Weighted average exercise price, granted | $ 0 | ||
Stock option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average exercise price, granted | $ 16 | ||
Weighted average grant date fair value | $ 2.71 | ||
Contractual term | 10 years | ||
Vesting period | 4 years |
Stock-based Compensation Stock
Stock-based Compensation Stock Options (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Jul. 27, 2016 | Mar. 31, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Outstanding beginning of period, shares | 256,357 | |
Granted, shares | 0 | |
Forfeited, shares | 0 | |
Exercised, shares | (20,257) | |
Outstanding end of period, shares | 236,100 | |
Exercisable, shares | 236,100 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | ||
Outstanding beginning of period | $ 16 | |
Granted | 0 | |
Forfeited | 0 | |
Exercised | 16 | |
Outstanding end of period | 16 | |
Exercisable end of period | $ 16 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||
Outstanding, weighted average remaining contractual term | 3 years 3 months 18 days | |
Exercisable, weighted average remaining contractual term | 3 years 3 months 18 days | |
Outstanding, aggregate intrinsic value | $ 67,088 | |
Exercisable, aggregate intrinsic value | $ 67,088 | |
Stock option [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Granted, shares | 1,036,916 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | ||
Granted | $ 16 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Earnings Per Share, [Line Items] | ||
Net income | $ 55,800 | $ 31,791 |
Weighted Average Number of Shares Outstanding, Basic [Abstract] | ||
Weighted average shares outstanding - basic | 23,008 | 22,753 |
Weighted Average Number of Shares Outstanding, Diluted [Abstract] | ||
Weighted average shares outstanding - diluted | 23,290 | 23,093 |
Earnings Per Share, Basic [Abstract] | ||
Earnings per share - basic | $ 2.43 | $ 1.40 |
Earnings Per Share, Diluted [Abstract] | ||
Earnings per share - diluted | $ 2.40 | $ 1.38 |
Stock option [Member] | ||
Incremental Weighted Average Shares Attributable to Dilutive Effect [Abstract] | ||
Dilutive effect of shares issued under stock compensation arrangements | 234 | 291 |
Restricted stock [Member] | ||
Incremental Weighted Average Shares Attributable to Dilutive Effect [Abstract] | ||
Dilutive effect of shares issued under stock compensation arrangements | 48 | 49 |
Earnings Per Share Narrative (D
Earnings Per Share Narrative (Details) - shares | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Restricted stock [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities | 47,000 | 53,000 |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended | |
Mar. 31, 2023 Rate | Mar. 31, 2022 Rate | |
Income Tax Disclosure [Abstract] | ||
Effective tax rate | 18.40% | 18.20% |
Federal statutory income tax rate | 21% | 21% |
Reserves for Unpaid Losses an_3
Reserves for Unpaid Losses and Loss Adjustment Expenses (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | ||||
Gross reserves for unpaid losses and loss adjustment expenses, beginning of year | $ 1,238,402 | $ 881,344 | ||
Reinsurance recoverable on unpaid losses | 198,955 | 121,367 | $ 177,039 | $ 117,561 |
Net reserves for unpaid losses and loss adjustment expenses, beginning of year | 1,061,363 | 763,783 | ||
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | ||||
Current year | 148,077 | 110,851 | ||
Prior years | (9,043) | (8,346) | ||
Total net losses and loss adjustment expenses incurred | 139,034 | 102,505 | ||
Payments: | ||||
Current year | 1,452 | 1,142 | ||
Prior years | 43,749 | 28,938 | ||
Total payments | 45,201 | 30,080 | ||
Net reserves for unpaid losses and loss adjustment expenses, end of period | 1,155,196 | 836,208 | ||
Reinsurance recoverable on unpaid losses | 198,955 | 121,367 | $ 177,039 | $ 117,561 |
Gross reserves for unpaid losses and loss adjustment expenses, end of period | $ 1,354,151 | $ 957,575 |
Reserves for Unpaid Losses an_4
Reserves for Unpaid Losses and Loss Adjustment Expenses Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Claims Development [Line Items] | ||
Adverse (Favorable) development on prior year loss reserves | $ (9,043) | $ (8,346) |
Current year | 148,077 | 110,851 |
Accident Years 2021 and 2020 | ||
Claims Development [Line Items] | ||
Adverse (Favorable) development on prior year loss reserves | (10,100) | |
Accident Years 2021 and 2022 | ||
Claims Development [Line Items] | ||
Adverse (Favorable) development on prior year loss reserves | $ (12,600) | |
Accident Years 2016 and 2018 | ||
Claims Development [Line Items] | ||
Adverse (Favorable) development on prior year loss reserves | $ 2,000 |
Reinsurance (Details)
Reinsurance (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Premiums Written, Net [Abstract] | ||||
Premiums written - direct | $ 357,588 | $ 245,513 | ||
Premiums written - ceded | (58,558) | (29,015) | ||
Net written premiums | 299,030 | 216,498 | ||
Premiums Earned, Net [Abstract] | ||||
Premiums earned - direct | 293,536 | 205,628 | ||
Premiums earned - ceded | (56,378) | (27,066) | ||
Net earned premiums | 237,158 | 178,562 | ||
Ceded incurred losses and loss adjustment expenses | 36,009 | 9,636 | ||
Reinsurance recoverables on paid losses | 19,841 | $ 43,415 | ||
Reinsurance recoverable on unpaid losses | 198,955 | $ 121,367 | 177,039 | $ 117,561 |
Reinsurance recoverables, net | $ 218,796 | $ 220,454 |
Debt (Details)
Debt (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Dec. 31, 2022 | |
Debt Instrument [Line Items] | ||
Credit facility | $ 195,747 | |
Senior Notes | $ 123,200 | |
Lines of Credit, Maximum Borrowing Capacity under former agreement | $ 50,000 | |
Line of Credit | ||
Debt Instrument [Line Items] | ||
Maturity Date | Jul. 22, 2027 | |
Current Borrowing Capacity | $ 100,000 | |
Credit Facility Accordion Feature | $ 30,000 | |
Line of Credit Facility, Commitment Fee Percentage | 0.25% | |
Interest Rate Description | The loans under the Amended and Restated Credit Agreement bear interest, at the Company's option, at a rate equal to the Adjusted Term SOFR Rate (as defined therein) plus 1.625% or the Alternate Base Rate (as defined therein) plus 0.625%. | |
Credit facility | $ 72,600 | |
Debt Issuance Costs, Net | $ 400 | |
Weighted Average Interest Rate | 6.40% | |
2034 Series A Notes | ||
Debt Instrument [Line Items] | ||
Debt Issuance Costs, Net | $ 1,800 | |
2034 Series A Notes | Senior Notes | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Issuance Date | Jul. 22, 2022 | |
Debt Instrument, Face Amount | $ 125,000 | |
Debt instrument borrowing capacity | $ 150,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 5.15% | |
Debt Instrument, Maturity Date | Jul. 22, 2034 | |
Debt Instrument, Date of First Required Payment | Jul. 22, 2030 | |
Debt Instrument, Periodic Payment, Principal | $ 25,000 |
Other Comprehensive (Loss) In_3
Other Comprehensive (Loss) Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||
Unrealized gains (losses) on fixed-maturity securities arising during the period, before income taxes | $ 21,170 | $ (80,485) |
Income tax (expense) benefit | (4,446) | 16,902 |
Unrealized gains (losses) arising during the period, net of income taxes | 16,724 | (63,583) |
Less reclassification adjustment [Abstract] | ||
Net realized (losses) gains on fixed-maturity securities, before income taxes | (912) | 439 |
Income tax benefit (expense) | 191 | (92) |
Reclassification adjustment included in net income | (721) | 347 |
Change in allowance for credit losses on investments, before income taxes | (81) | 0 |
Income tax benefit | 17 | 0 |
Reclassification adjustment included in net income | (64) | 0 |
Other comprehensive income (loss) | $ 17,509 | $ (63,930) |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Subsequent Events [Abstract] | |||
Payments to Acquire Real Estate and Real Estate Joint Ventures | $ 558 | $ 0 | $ 76,600 |