Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Feb. 12, 2016 | Jun. 30, 2015 | |
Document and Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | SELECTIVE INSURANCE GROUP INC | ||
Entity Central Index Key | 230,557 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $ 1,565,753,304 | ||
Entity Common Stock, Shares Outstanding | 57,587,942 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
ASSETS | ||
Fixed income securities, held-to-maturity – at carrying value (fair value: $209,544 – 2015; $333,961 – 2014) | $ 201,354,000 | $ 318,137,000 |
Fixed income securities, available-for-sale – at fair value (amortized cost: $4,352,514 – 2015; $3,975,786 – 2014) | 4,408,203,000 | 4,066,122,000 |
Equity securities, available-for-sale – at fair value (cost: $193,816 – 2015; $159,011 – 2014) | 207,051,000 | 191,400,000 |
Short-term investments (at cost which approximates fair value) | 194,819,000 | 131,972,000 |
Other investments | 77,842,000 | 99,203,000 |
Total investments (Note 5) | 5,089,269,000 | 4,806,834,000 |
Cash | 898,000 | 23,959,000 |
Interest and dividends due or accrued | 38,501,000 | 38,901,000 |
Premiums receivable, net of allowance for uncollectible accounts of: $4,422 – 2015; $4,137 – 2014 | 615,164,000 | 558,778,000 |
Reinsurance recoverable, net (Note 8) | 561,968,000 | 581,548,000 |
Prepaid reinsurance premiums (Note 8) | 140,889,000 | 146,993,000 |
Deferred federal income tax (Note 13) | 92,696,000 | 98,449,000 |
Property and equipment – at cost, net of accumulated depreciation and amortization of: $188,548 – 2015; $172,183 – 2014 | 65,701,000 | 59,416,000 |
Deferred policy acquisition costs (Note 2) | 213,159,000 | 185,608,000 |
Goodwill (Note 11) | 7,849,000 | 7,849,000 |
Other assets | 78,339,000 | 66,607,000 |
Total assets | 6,904,433,000 | 6,574,942,000 |
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||
Reserve for losses and loss expenses (Note 9) | 3,517,728,000 | 3,477,870,000 |
Unearned premiums | 1,169,710,000 | 1,095,819,000 |
Notes payable (Note 10) | 388,192,000 | 372,689,000 |
Current federal income tax (Note 13) | 7,442,000 | 3,921,000 |
Accrued salaries and benefits | 167,336,000 | 158,382,000 |
Other liabilities | 255,984,000 | 190,675,000 |
Total liabilities | 5,506,392,000 | 5,299,356,000 |
Stockholders’ Equity: | ||
Preferred stock of $0 par value per share: Authorized shares: 5,000,000; no shares issued or outstanding | 0 | 0 |
Common stock of $2 par value per share Authorized shares: 360,000,000 Issued: 100,861,372 - 2015; 99,947,933 - 2014 | 201,723,000 | 199,896,000 |
Additional paid-in capital | 326,656,000 | 305,385,000 |
Retained earnings | 1,446,192,000 | 1,313,440,000 |
Accumulated other comprehensive (loss) income (Note 6) | (9,425,000) | 19,788,000 |
Treasury stock – at cost (shares: 43,500,642 – 2015; 43,353,181 – 2014) | (567,105,000) | (562,923,000) |
Total stockholders’ equity | $ 1,398,041,000 | $ 1,275,586,000 |
Commitments and contingencies (Notes 17 and 18) | ||
Total liabilities and stockholders’ equity | $ 6,904,433,000 | $ 6,574,942,000 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Fixed income securities, held-to-maturity, fair value | $ 209,544 | $ 333,961 |
Fixed income securities, available-for-sale, amortized cost | 4,352,514 | 3,975,786 |
Equity securities, available-for-sale, cost | 193,816 | 159,011 |
Premiums receivable, allowance for uncollectible accounts | 4,422 | 4,137 |
Property and equipment, accumulated depreciation and amortization | $ 188,548 | $ 172,183 |
Preferred stock, par value per share | $ 0 | $ 0 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value per share | $ 2 | $ 2 |
Common stock, shares authorized | 360,000,000 | 360,000,000 |
Common stock, shares issued | 100,861,372 | 99,947,933 |
Treasury stock, shares | 43,500,642 | 43,353,181 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenues: | |||
Net premiums earned | $ 1,989,909 | $ 1,852,609 | $ 1,736,072 |
Net investment income | 121,316 | 138,708 | 134,643 |
Net realized gains: | |||
Net realized investment gains | 31,537 | 37,703 | 26,375 |
Other-than-temporary impairments | (18,366) | (11,104) | (5,566) |
Other-than-temporary impairments on fixed income securities recognized in other comprehensive income | 0 | 0 | (77) |
Total net realized gains | 13,171 | 26,599 | 20,732 |
Other income | 7,456 | 16,945 | 12,294 |
Total revenues | 2,131,852 | 2,034,861 | 1,903,741 |
Expenses: | |||
Losses and loss expenses incurred | 1,148,541 | 1,157,501 | 1,121,738 |
Policy acquisition costs | 689,820 | 624,470 | 579,977 |
Interest expense | 22,428 | 23,063 | 26,361 |
Other expenses | 38,371 | 32,696 | 31,863 |
Total expenses | 1,899,160 | 1,837,730 | 1,759,939 |
Income from continuing operations, before federal income tax | 232,692 | 197,131 | 143,802 |
Federal income tax expense: | |||
Current | 45,347 | 28,415 | 24,147 |
Deferred | 21,484 | 26,889 | 12,240 |
Total federal income tax expense | 66,831 | 55,304 | 36,387 |
Net income from continuing operations | 165,861 | 141,827 | 107,415 |
Loss on disposal of discontinued operations, net of tax of $(538) – 2013 | 0 | 0 | (997) |
Net income | $ 165,861 | $ 141,827 | $ 106,418 |
Earnings per share: | |||
Basic net income from continuing operations | $ 2.90 | $ 2.52 | $ 1.93 |
Basic net loss from discontinued operations | 0 | 0 | (0.02) |
Basic net income | 2.90 | 2.52 | 1.91 |
Diluted net income from continuing operations | 2.85 | 2.47 | 1.89 |
Diluted net loss from discontinued operations | 0 | 0 | (0.02) |
Diluted net income | 2.85 | 2.47 | 1.87 |
Dividends to stockholders | $ 0.57 | $ 0.53 | $ 0.52 |
Consolidated Statements of Inc5
Consolidated Statements of Income (Parenthetical) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Statement [Abstract] | |||
Loss on disposal of discontinued operations, tax | $ 0 | $ 0 | $ (538,000) |
Consolidation Statements of Com
Consolidation Statements of Comprehensive Income - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Net income | $ 165,861,000 | $ 141,827,000 | $ 106,418,000 |
Unrealized holding (losses) gains arising during year | (26,143,000) | 47,411,000 | (54,557,000) |
Non-credit portion of other-than-temporary impairments recognized in other comprehensive income | 0 | 0 | 50,000 |
Amount reclassified into net income: Held-to-maturity securities | (377,000) | (844,000) | (1,025,000) |
Amount reclassified into net income: Non-credit other-than-temporary impairment | 232,000 | 1,085,000 | 9,000 |
Realized gains on available for sale securities | (9,110,000) | (18,762,000) | (15,301,000) |
Total unrealized (losses) gains on investment securities | (35,398,000) | 28,890,000 | (70,824,000) |
Net actuarial gain (loss) | 1,585,000 | (35,189,000) | 38,775,000 |
Amount reclassified into net income: Net actuarial loss | 4,600,000 | 1,236,000 | 2,843,000 |
Amount reclassified into net income: Prior service cost | 0 | 0 | 6,000 |
Amount reclassified into net income: Curtailment expense | 0 | 0 | 11,000 |
Total defined benefit pension and post-retirement plans | 6,185,000 | (33,953,000) | 41,635,000 |
Other comprehensive loss | (29,213,000) | (5,063,000) | (29,189,000) |
Comprehensive income | $ 136,648,000 | $ 136,764,000 | $ 77,229,000 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) | Total | Common Stock [Member] | Additional paid-in capital [Member] | Retained earnings [Member] | Accumulated other comprehensive (loss) income [Member] | Treasury stock [Member] |
Beginning of year at Dec. 31, 2012 | $ 196,388,000 | $ 270,654,000 | $ 1,125,154,000 | $ 54,040,000 | $ (555,644,000) | |
Dividend reinvestment plan (shares: 50,013 – 2015; 58,309 – 2014; 63,349 – 2013) | 127,000 | 1,396,000 | ||||
Stock purchase and compensation plans (shares: 863,426 – 2015; 769,389 – 2014; 862,662 – 2013) | 1,725,000 | 16,132,000 | ||||
Net income | $ 106,418,000 | 106,418,000 | ||||
Dividends to stockholders ($0.57 per share – 2015; $0.53 per share – 2014; $0.52 per share – 2013) | (29,557,000) | |||||
Other comprehensive loss | (29,189,000) | (29,189,000) | ||||
Acquisition of treasury stock (shares: 147,461 – 2015; 154,559 – 2014; 167,846 – 2013) | (3,716,000) | |||||
End of year at Dec. 31, 2013 | 1,153,928,000 | 198,240,000 | 288,182,000 | 1,202,015,000 | 24,851,000 | (559,360,000) |
Dividend reinvestment plan (shares: 50,013 – 2015; 58,309 – 2014; 63,349 – 2013) | 117,000 | 1,306,000 | ||||
Stock purchase and compensation plans (shares: 863,426 – 2015; 769,389 – 2014; 862,662 – 2013) | 1,539,000 | 15,897,000 | ||||
Net income | 141,827,000 | 141,827,000 | ||||
Dividends to stockholders ($0.57 per share – 2015; $0.53 per share – 2014; $0.52 per share – 2013) | (30,402,000) | |||||
Other comprehensive loss | (5,063,000) | (5,063,000) | ||||
Acquisition of treasury stock (shares: 147,461 – 2015; 154,559 – 2014; 167,846 – 2013) | (3,563,000) | |||||
End of year at Dec. 31, 2014 | 1,275,586,000 | 199,896,000 | 305,385,000 | 1,313,440,000 | 19,788,000 | (562,923,000) |
Dividend reinvestment plan (shares: 50,013 – 2015; 58,309 – 2014; 63,349 – 2013) | 100,000 | 1,374,000 | ||||
Stock purchase and compensation plans (shares: 863,426 – 2015; 769,389 – 2014; 862,662 – 2013) | 1,727,000 | 19,897,000 | ||||
Net income | 165,861,000 | 165,861,000 | ||||
Dividends to stockholders ($0.57 per share – 2015; $0.53 per share – 2014; $0.52 per share – 2013) | (33,109,000) | |||||
Other comprehensive loss | (29,213,000) | (29,213,000) | ||||
Acquisition of treasury stock (shares: 147,461 – 2015; 154,559 – 2014; 167,846 – 2013) | (4,182,000) | |||||
End of year at Dec. 31, 2015 | $ 1,398,041,000 | $ 201,723,000 | $ 326,656,000 | $ 1,446,192,000 | $ (9,425,000) | $ (567,105,000) |
Consolidated Statements of Sto8
Consolidated Statements of Stockholders' Equity (Parenthetical) | 12 Months Ended | ||
Dec. 31, 2015$ / sharesshares | Dec. 31, 2014$ / sharesshares | Dec. 31, 2013$ / sharesshares | |
Dividend reinvestment plan, shares | 50,013 | 58,309 | 63,349 |
Stock purchase and compensation plans, shares | 863,426 | 769,389 | 862,662 |
Dividends to stockholders, per share | $ / shares | $ 0.57 | $ 0.53 | $ 0.52 |
Acquisition of treasury stock, shares | 147,461 | 154,559 | 167,846 |
Preferred stock, par value per share | $ / shares | $ 0 | $ 0 | $ 0 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 | 0 |
Series A Preferred Stock [Member] | |||
Preferred stock, par value per share | $ / shares | $ 0 | $ 0 | $ 0 |
Preferred stock, shares authorized | 300,000 | 300,000 | 300,000 |
Consolidated Statements of Cash
Consolidated Statements of Cashflow - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Operating Activities | |||
Net income | $ 165,861 | $ 141,827 | $ 106,418 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 59,688 | 45,346 | 43,461 |
Sale of renewal rights | 0 | (8,000) | 0 |
Loss on disposal of discontinued operations | 0 | 0 | 997 |
Stock-based compensation expense | 8,973 | 8,702 | 8,630 |
Undistributed losses (gains) of equity method investments | 1,889 | (153) | 202 |
Net realized gains | (13,171) | (26,599) | (20,732) |
Net gain on disposal of property and equipment | 0 | (104) | 0 |
Retirement income plan curtailment expense | 0 | 0 | 16 |
Changes in assets and liabilities: | |||
Increase in reserves for losses and loss expenses, net of reinsurance recoverables | 59,438 | 97,449 | 151,037 |
Increase in unearned premiums, net of prepaid reinsurance | 79,995 | 32,671 | 74,086 |
Decrease in net federal income taxes | 25,004 | 31,323 | 14,834 |
Increase in premiums receivable | (56,386) | (33,908) | (40,482) |
Increase in deferred policy acquisition costs | (27,551) | (12,627) | (17,458) |
Decrease (increase) in interest and dividends due or accrued | 407 | (1,536) | (1,372) |
Increase (decrease) in accrued salaries and benefits | 11,392 | (7,182) | 18,685 |
Increase (decrease) in accrued insurance expenses | 23,342 | (956) | 14,444 |
Increase (decrease) in other assets and other liabilities | 42,699 | (33,490) | (16,642) |
Net adjustments | 215,719 | 90,936 | 229,706 |
Net cash provided by operating activities | 381,580 | 232,763 | 336,124 |
Investing Activities | |||
Purchase of fixed income securities, held-to-maturity | (3,316) | 0 | 0 |
Purchase of fixed income securities, available-for-sale | (1,041,916) | (843,616) | (1,069,387) |
Purchase of equity securities, available-for-sale | (195,720) | (186,019) | (118,072) |
Purchase of other investments | (12,170) | (10,617) | (9,332) |
Purchase of short-term investments | (1,602,327) | (1,410,123) | (2,056,576) |
Sale of subsidiary | 0 | 0 | 1,225 |
Sale of fixed income securities, available-for-sale | 61,571 | 51,002 | 20,126 |
Sale of short-term investments | 1,539,480 | 1,452,402 | 2,096,805 |
Redemption and maturities of fixed income securities, held-to-maturity | 106,621 | 73,415 | 116,584 |
Redemption and maturities of fixed income securities, available-for-sale | 567,445 | 482,816 | 513,804 |
Sale of equity securities, available-for-sale | 172,561 | 208,008 | 115,782 |
Distributions from other investments | 32,457 | 20,774 | 12,039 |
Purchase of property and equipment | (16,229) | (15,510) | (14,023) |
Sale of renewal rights | 0 | 8,000 | 0 |
Net cash used in investing activities | (391,543) | (169,468) | (391,025) |
Financing Activities | |||
Dividends to stockholders | (31,052) | (28,428) | (27,416) |
Acquisition of treasury stock | (4,182) | (3,563) | (3,716) |
Net proceeds from stock purchase and compensation plans | 10,089 | 7,283 | 7,119 |
Proceeds from issuance of notes payable, net of debt issuance costs | 0 | 0 | 178,435 |
Proceeds from borrowings | 15,000 | 0 | 0 |
Repayment of borrowings | 0 | 13,000 | 0 |
Repayment of notes payable | 0 | 0 | (100,000) |
Excess tax benefits from share-based payment arrangements | 1,736 | 1,020 | 1,545 |
Repayment of capital lease obligations | (4,689) | (2,841) | (1,083) |
Net cash (used in) provided by financing activities | (13,098) | (39,529) | 54,884 |
Net (decrease) increase in cash | (23,061) | 23,766 | (17) |
Cash, beginning of year | 23,959 | 193 | 210 |
Cash, end of year | $ 898 | $ 23,959 | $ 193 |
Organization
Organization | 12 Months Ended |
Dec. 31, 2015 | |
Organization [Abstract] | |
Organization | Organization Selective Insurance Group, Inc., through its subsidiaries, (collectively referred to as “we,” “us,” or “our”) offers standard commercial, standard personal, and excess and surplus lines (“E&S”) property and casualty insurance products. Selective Insurance Group, Inc. (referred to as the “Parent”) was incorporated in New Jersey in 1977 and its main offices are located in Branchville, New Jersey. The Parent’s common stock is publicly traded on the NASDAQ Global Select Market under the symbol “SIGI.” We have provided a glossary of terms as Exhibit 99.1 to this Form 10-K, which defines certain industry-specific and other terms that are used in this Form 10-K. We classify our business into four reportable segments: • Standard Commercial Lines - comprised of insurance products and services provided in the standard marketplace to our commercial customers, who are typically businesses, non-profit organizations, and local government agencies. • Standard Personal Lines - comprised of insurance products and services, including flood insurance coverage, provided primarily to individuals acquiring coverage in the standard marketplace. • E&S Lines - comprised of insurance products and services provided to customers who have not obtained coverage in the standard marketplace. • Investments - invests the premiums collected by our insurance operations, as well as amounts generated through our capital management strategies, which may include the issuance of debt and equity securities. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Summary of Signifcant Accounting Policies | Summary of Significant Accounting Policies (a) Principles of Consolidation The accompanying consolidated financial statements (“Financial Statements”) include the accounts of the Parent and its subsidiaries, and have been prepared in conformity with: (i) U.S. generally accepted accounting principles ("GAAP"); and (ii) the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). All significant intercompany accounts and transactions are eliminated in consolidation. (b) Use of Estimates The preparation of our Financial Statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported financial statement balances, as well as the disclosure of contingent assets and liabilities. Actual results could differ from those estimates. (c) Reclassifications Certain amounts in our prior years' Financial Statements and related notes have been reclassified to conform to the 2015 presentation. Such reclassifications had no effect on our net income, stockholders' equity, or cash flows. (d) Investments Fixed income securities may include bonds, redeemable preferred stocks, mortgage-backed securities (“MBS”) and asset-backed securities (“ABS”). MBS and ABS are jointly referred to as structured securities. Fixed income securities classified as available-for-sale (“AFS”) are reported at fair value. Those fixed income securities that we have the ability and positive intent to hold to maturity are classified as held-to-maturity (“HTM”) and are carried at either: (i) amortized cost; or (ii) market value at the date of transfer into the HTM category, adjusted for subsequent amortization. The amortized cost of fixed income securities is adjusted for the amortization of premiums and the accretion of discounts over the expected life of the security using the effective yield method. Premiums and discounts arising from the purchase of structured securities are amortized over the expected life of the security based on future principal payments, and considering prepayments. These prepayments are estimated based on historical and projected cash flows. Prepayment assumptions are reviewed quarterly and adjusted to reflect actual prepayments and changes in expectations. Future amortization of any premium and/or discount is adjusted to reflect the revised assumptions. Interest income, as well as amortization and accretion, is included in "Net investment income earned" on our Consolidated Statements of Income. The amortized cost of fixed income securities is written down to fair value when a decline in value is considered to be other than temporary. See the discussion below on realized investment gains and losses for a description of the accounting for impairments. After-tax unrealized gains and losses on: (i) fixed income securities classified as AFS; and (ii) fixed income securities that were transferred into an HTM designation from an AFS designation, are included in accumulated other comprehensive income (loss) ("AOCI"). Equity securities, which are classified as AFS, may include common stocks and non-redeemable preferred stocks, and are carried at fair value. Dividend income on these securities is included in "Net investment income earned" on our Consolidated Statements of Income. The associated unrealized gains and losses, net of tax, are included in AOCI. The cost of equity securities is written down to fair value when a decline in value is considered to be other than temporary. See the discussion below on realized investment gains and losses for a description of the accounting for impairments. Short-term investments may include certain money market instruments, savings accounts, commercial paper, and other debt issues purchased with a maturity of less than one year. These investments are carried at cost, which approximates fair value. The associated income is included in "Net investment income earned" on our Consolidated Statement of Income. Other investments may include alternative investments and other securities. Alternative investments are accounted for using the equity method. Our share of distributed and undistributed net income from alternative investments is included in "Net investment income earned" on our Consolidated Statement of Income. Other securities are primarily comprised of tax credit investments. Low income housing tax credits are accounted for under the proportional amortization method and all other tax credits are accounted for using the equity method. Under the proportional amortization method, our share of the investment’s performance is recorded in our Consolidated Statement of Income as a component of “Federal income tax expense.” Under the equity method, our share of distributed and undistributed net income is included in "Net investment income earned" on our Consolidated Statement of Income. Realized gains and losses on the sale of investments are determined on the basis of the cost of the specific investments sold and are credited or charged to income. Included in realized gains and losses are the other-than-temporary impairment ("OTTI") charges recognized in earnings, which are discussed below. When the fair value of any investment is lower than its cost/amortized cost, an assessment is made to determine if the decline is other than temporary. We regularly review our entire investment portfolio for declines in fair value. If we believe that a decline in the value of an AFS security is temporary, we record the decline as an unrealized loss in AOCI. Temporary declines in the value of an HTM security are not recognized in the Financial Statements. Our assessment of a decline in fair value includes judgment as to the financial position and future prospects of the entity that issued the investment security, as well as a review of the security’s underlying collateral for fixed income investments. Broad changes in the overall market or interest rate environment generally will not lead to a write-down. Fixed Income Securities and Short-Term Investments Our evaluation for OTTI of a fixed income security or a short-term investment may include, but is not limited to, the evaluation of the following factors: • Whether the decline appears to be issuer or industry specific; • The degree to which the issuer is current or in arrears in making principal and interest payments on the fixed income security; • The issuer’s current financial condition and ability to make future scheduled principal and interest payments on a timely basis; • Evaluation of projected cash flows; • Buy/hold/sell recommendations published by outside investment advisors and analysts; and • Relevant rating history, analysis, and guidance provided by rating agencies and analysts. OTTI charges are recognized as a realized loss to the extent that they are credit related, unless we have the intent to sell the security or it is more-likely-than not that we will be required to sell the security. In those circumstances, the security is written down to fair value with the entire amount of the writedown charged to earnings as a component of realized losses. To determine if an impairment is other than temporary, we compare the present value of cash flows expected to be collected with the amortized cost of fixed income securities meeting certain criteria. In addition, this analysis is performed on all previously-impaired debt securities that continue to be held by us and all structured securities that were not of high-credit quality at the date of purchase. These impairment assessments may include, but are not limited to, discounted cash flow analyses ("DCFs"). For structured securities, including commercial mortgage-backed securities ("CMBS"), residential mortgage-backed securities ("RMBS"), ABS, and collateralized debt obligations ("CDOs"), we also consider variables such as expected default, severity, and prepayment assumptions based on security type and vintage, taking into consideration information from credit agencies, historical performance, and other relevant economic and performance factors. In making our assessment, we perform a DCF to determine the present value of future cash flows to be generated by the underlying collateral of the security. Any shortfall in the expected present value of the future cash flows, based on the DCF, from the amortized cost basis of a security is considered a “credit impairment,” with the remaining decline in fair value of a security considered as a “non-credit impairment.” As mentioned above, credit impairments are charged to earnings as a component of realized losses, while non-credit impairments are recorded to Other Comprehensive Income ("OCI") as a component of unrealized losses. Discounted Cash Flow Assumptions The discount rate we use in a DCF is the effective interest rate implicit in the security at the date of acquisition for those structured securities that were not of high-credit quality at acquisition. For all other securities, we use a discount rate that equals the current yield, excluding the impact of previous OTTI charges, used to accrete the beneficial interest. If applicable, we use a conditional default rate assumption in the DCF to estimate future defaults. The conditional default rate is the proportion of all loans outstanding in a security at the beginning of a time period that are expected to default during that period. Our assumption of this rate takes into consideration the uncertainty of future defaults as well as whether or not these securities have experienced significant cumulative losses or delinquencies to date. If applicable, conditional default rate assumptions apply at the total collateral pool level held in the securitization trust. Generally, collateral conditional default rates will “ramp-up” over time as the collateral seasons, because the performance begins to weaken and losses begin to surface. As time passes, depending on the collateral type and vintage, losses will peak and performance will begin to improve as weaker borrowers are removed from the pool through delinquency resolutions. In the later years of a collateral pool’s life, performance is generally materially better as the resulting favorable selection of the portfolio improves the overall quality and performance. For CMBS, we also consider the net operating income (“NOI”) generated by the underlying properties. Our assumptions of the properties’ ultimate cash flows take into consideration both an immediate reduction to the reported NOIs and decreases to projected NOIs. If applicable, we use a loan loss severity assumption in our DCF that is applied at the loan level of the collateral pool. The loan loss severity assumptions represent the estimated percentage loss on the loan-to-value exposure for a particular security. For CMBS, the loan loss severities applied are based on property type. Losses generated from the evaluations are then applied to the entire underlying deal structure in accordance with the original service agreements. Equity Securities Evaluation for OTTI of an equity security may include, but is not limited to, an evaluation of the following factors: • Whether the decline appears to be issuer or industry specific; • The relationship of market prices per share to book value per share at the date of acquisition and date of evaluation; • The price-earnings ratio at the time of acquisition and date of evaluation; • The financial condition and near-term prospects of the issuer, including any specific events that may influence the issuer's operations, coupled with our intention to hold the securities in the near-term; • The recent income or loss of the issuer; • The independent auditors' report on the issuer's recent financial statements; • The dividend policy of the issuer at the date of acquisition and the date of evaluation; • Buy/hold/sell recommendations or price projections published by outside investment advisors; • Rating agency announcements; • The length of time and the extent to which the fair value has been, or is expected to be, less than its cost in the near term; and • Our expectation of when the cost of the security will be recovered. If there is a decline in the fair value on an equity security that we do not intend to hold, or if we determine the decline is other-than-temporary, including declines driven by market volatility for which we cannot assert will recover in the near term, we will write down the carrying value of the investment and record the charge through earnings as a component of realized losses. Other Investments Our evaluation for OTTI of an other investment (i.e., an alternative investment) may include, but is not limited to, conversations with the management of the alternative investment concerning the following: • The current investment strategy; • Changes made or future changes to be made to the investment strategy; • Emerging issues that may affect the success of the strategy; and • The appropriateness of the valuation methodology used regarding the underlying investments. If there is a decline in the fair market value of an other investment that we do not intend to hold, or if we determine the decline is other than temporary, we write down the carry value of the investment and record the charge through earnings as a component of realized losses. (e) Fair Values of Financial Instruments Assets The fair values of our investments are generated using various valuation techniques and are placed into the fair value hierarchy considering the following: (i) the highest priority is given to quoted prices in active markets for identical assets (Level 1); (ii) the next highest priority is given to quoted prices in markets that are not active or inputs that are observable either directly or indirectly, including quoted prices for similar assets in markets that are not active and other inputs that can be derived principally from, or corroborated by, observable market data for substantially the full term of the assets (Level 2); and (iii) the lowest priority is given to unobservable inputs supported by little or no market activity and that reflect our assumptions about the exit price, including assumptions that market participants would use in pricing the asset (Level 3). An asset’s classification within the fair value hierarchy is based on the lowest level of significant input to its valuation. Transfers between levels in the fair value hierarchy are recognized at the end of the reporting period. The techniques used to value our financial assets are as follows: Level 1 Pricing Security Type Methodology Equity Securities; U.S. Treasury Notes Equity and U.S. Treasury Note prices are received from an independent pricing service that are based on observable market transactions. We validate these prices against a second external pricing service, and if established market value comparison thresholds are breached, further analysis is performed, in conjunction with our external investment managers, to determine the price to be used. Short-Term Investments Short-term investments are carried at cost, which approximates fair value. Given the liquid nature of our short-term investments, we generally validate their fair value by way of active trades within approximately one week of the financial statement close. Level 2 Pricing We utilize a market approach for our Level 2 securities, using primarily matrix pricing models prepared by external pricing services. Matrix pricing models use mathematical techniques to value debt securities by relying on the securities relationship to other benchmark quoted securities, and not relying exclusively on quoted prices for specific securities, as the specific securities are not always frequently traded. As a matter of policy, we consistently use one pricing service as our primary source and secondary pricing services if prices are not available from the primary pricing service. In conjunction with our external investment portfolio managers, fixed income securities portfolio pricing is reviewed for reasonableness in the following ways: (i) comparing our pricing to other third-party pricing services as well as benchmark indexed pricing; (ii) comparing positions traded directly by the external investment portfolio managers to prices received from the third-party pricing services; (iii) comparing market value fluctuations between months for reasonableness; and (iv) reviewing stale prices. If further analysis is needed, a challenge is sent to the pricing service for review and confirmation of the price. Further information on our Level 2 asset pricing is included in the following table: Security Type Methodology Corporate Securities; U.S. Government and Government Agencies Evaluations include obtaining relevant trade data, benchmark quotes and spreads and incorporating this information into either spread-based or price-based evaluations as determined by the observed market data. Spread-based evaluations include: (i) creating a range of spreads for relevant maturities of each issuer based on the new issue market, secondary trading, and dealer quotes; and (ii) incorporating option adjusted spreads for issues that have early redemption features. Based on the findings in (i) and (ii) above, final spreads are derived and added to benchmark curves. Price-based evaluations include matching each issue to its best-known market maker and contacting firms that transact in these securities. Obligations of States and Political Subdivisions Evaluations are based on yield curves that are developed based on factors such as: (i) benchmarks to issues with interest rates near prevailing market rates; (ii) established trading spreads over widely-accepted market benchmarks; (iii) yields on new issues; and (iv) market information from third-party sources such as reportable trades, broker-dealers, or issuers. Structured Securities (including ABS, CMBS, RMBS) Evaluations are based on a discounted cash flow model, including: (i) generating cash flows for each tranche considering tranche-specific data, market data, and other pertinent information such as historical performance of the underlying collateral, including net operating income generated by the underlying properties, conditional default rate assumptions, loan loss severity assumptions, consensus projections, prepayment projections, and actual pool and loan level collateral information; (ii) identifying applicable benchmark yields; and (iii) applying market-based tranche-specific spreads to determine an appropriate yield by incorporating collateral performance, tranche-level attributes, trades, bids, and offers. Foreign Government Evaluations are performed using a discounted cash flow model and incorporating observed market yields of benchmarks as inputs, adjusting for varied maturities. Level 3 Pricing Less than 1% of our portfolio cannot be priced using our primary or secondary pricing service. At times, we may use non-binding broker quotes to value some of these securities. These prices are from various broker/dealers that use bid or ask prices, or benchmarks to indices, in measuring the fair value of a security. In conjunction with our external investment portfolio managers, these fair value measurements are reviewed for reasonableness. This review typically includes an analysis of price fluctuations between months with variances over established thresholds being analyzed further. Further information on our current Level 3 asset pricing is included in the following table: Security Type Methodology Corporate Securities This tax credit investment is priced internally using spread-based evaluations. Equity Securities This non-publicly traded stock of the Federal Home Loan Bank is valued by the issuer. Liabilities The techniques used to value our notes payable are as follows: Level 1 Pricing Security Type Methodology 5.875% Senior Notes Based on the quoted market prices. Level 2 Pricing Security Type Methodology 7.25% Senior Notes; 6.70% Senior Notes Based on matrix pricing models prepared by external pricing services. Borrowings from Federal Home Loan Bank Evaluations are performed using a DCF model based on a current borrowing rate provided by the Federal Home Loan Bank that is consistent with the remaining term of the borrowing. See Note 7. “Fair Value Measurements” for a summary table of the fair value and related carrying amounts of financial instruments. (f) Allowance for Doubtful Accounts We estimate an allowance for doubtful accounts on our premiums receivable. This allowance is based on historical write-off percentages adjusted for the effects of current and anticipated trends. An account is charged off when we believe it is probable that we will not collect a receivable. In making this determination, we consider information obtained from our efforts to collect amounts due directly and/or through collection agencies. (g) Share-Based Compensation Share-based compensation consists of all share-based payment transactions in which an entity acquires goods or services by issuing (or offering to issue) its shares, share units, share options, or other equity instruments. The cost resulting from all share-based payment transactions are recognized in the Financial Statements based on the fair value of both equity and liability awards. The fair value is measured at grant date for equity awards, whereas the fair value for liability awards are remeasured at each reporting period. Both the fair value of equity and liability awards is recognized over the requisite service period. The requisite service period is typically the lesser of the vesting period or the period of time from the grant date to the date of retirement eligibility. The expense recognized for share-based awards, which, in some cases, contain performance criteria, is based on the number of shares or units expected to be issued at the end of the performance period. We repurchase the Parent’s stock from our employees in connections with, and as permitted under, our stock-based compensation plans. This activity is disclosed in our Consolidated Statements of Stockholders' Equity. (h) Reinsurance Reinsurance recoverables represent estimates of amounts that will be recovered from reinsurers under our various treaties. Generally, amounts recoverable from reinsurers are recognized as assets at the same time and in a manner consistent with the paid and unpaid losses associated with the reinsured policies. We require collateral to secure reinsurance recoverables primarily from our reinsurance carriers that are not authorized, otherwise approved, or certified to do business in our Insurance Subsidiaries’ domiciliary states. This collateral is typically in the form of a letter of credit or cash. An allowance for estimated uncollectible reinsurance is recorded based on an evaluation of balances due from reinsurers and other available information, such as each reinsurers' credit rating from A.M. Best Company ("A.M. Best") or Standard & Poor's Rating Services ("S&P"). We charge off reinsurance recoverables on paid losses when it becomes probable that we will not collect the balance. (i) Property and Equipment Property and equipment used in operations, including certain costs incurred to develop or obtain computer software for internal use, are capitalized and carried at cost less accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets. The following estimated useful lives can be considered as general guidelines: Asset Category Years Computer hardware 3 Computer software 3 to 5 Internally developed software 5 to 10 Furniture and fixtures 10 Buildings and improvements 5 to 40 We recorded depreciation expense of $16.4 million , $12.6 million , and $10.2 million for 2015 , 2014 and 2013 , respectively. (j) Deferred Policy Acquisition Costs Deferred policy acquisition costs are limited to costs directly related to the successful acquisition of insurance contracts. Costs meeting this definition typically include, among other things, sales commissions paid to our distribution partners, premium taxes, and the portion of employee salaries and benefits directly related to time spent on acquired contracts. These costs are deferred and amortized over the life of the contracts. Accounting guidance requires a premium deficiency analysis to be performed at the level an entity acquires, services, and measures the profitability of its insurance contracts. We currently perform three premium deficiency analyses for our insurance segments, consistent with our reportable segments of Standard Commercial Lines, Standard Personal Lines, and E&S Lines. A combined ratio of over 100% does not necessarily indicate a premium deficiency, as any year's combined ratio includes a portion of underwriting expenses that are expensed at policy inception and therefore are not covered by the remaining unearned premium. In addition, investment income is not contemplated in the combined ratio calculation. There were no premium deficiencies for any of the reported years, as the sum of the anticipated losses and loss expenses, unamortized acquisition costs, policyholder dividends, and other expenses for each segment did not exceed that segment’s related unearned premium and anticipated investment income. The investment yields assumed in the premium deficiency assessment for each reporting period, which are based on our actual average investment yield before tax as of the September 30 calculation date, were 2.5% for 2015 and 3.0% for both 2014 and 2013 . Deferred policy acquisition costs amortized to expense were $399.4 million for 2015 , $364.3 million for 2014 , and $331.8 million for 2013 . (k) Goodwill Goodwill results from business acquisitions where the cost of assets and liabilities acquired exceeds the fair value of those assets and liabilities. A quantitative goodwill impairment analysis is performed if our quarterly qualitative analysis indicates that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. Goodwill is allocated to the reporting units for purposes of these analyses. (l) Reserves for Losses and Loss Expenses Reserves for losses and loss expenses are comprised of both case reserves on individual claims, and reserves for claims incurred but not reported ("IBNR"). Case reserves result from claims that have been reported to one or more of our ten insurance subsidiaries, which are collectively referred to as the "Insurance Subsidiaries," and are estimated at the amount of the expected ultimate payment. IBNR reserves are established at more aggregated levels than case basis reserves, and in addition to reserves on claims that have been incurred but not reported, they include provisions for future emergence on known claims, and as well as reopened claims. IBNR reserves are established based on the results of the Insurance Subsidiaries’ internal reserve analysis, supplemented with other internal and external information. The internal reserve analysis is performed quarterly, and relies upon generally accepted actuarial techniques. Such techniques assume that past experience, adjusted for the effects of current developments and anticipated trends, are an appropriate basis for predicting future events. While the reserve analysis is the primary basis for determining IBNR reserves, other internal and external factors are considered. Internal factors include: (i) supplemental data regarding claim reporting and settlement trends; (ii) exposure estimates for reported claims, along with recent development on those estimates with respect to individual large claims and the aggregate of all claims; (iii) the rate at which new large or complex claims are being reported; and (iv) additional trends observed by claims personnel or reported to them by defense counsel. External factors considered include: (i) legislative enactments; (ii) judicial decisions; (iii) legal developments in the determination of liability and the imposition of damages; and (iv) trends in general economic conditions, including the effects of inflation. Loss reserves are estimates, and as such, we also consider a range of possible loss and loss expense reserve estimates. This range is determined at the beginning of each year, and reflects the fact that there is no single precise method for estimating the required reserves, due to the many factors which may influence the amounts ultimately paid. Considering the reserve range along with all of the items described above, IBNR estimates are then established and recorded. The combination of the IBNR estimates along with the case reserve estimates on individual claims results in our total reserves for losses and loss expenses. These reserves are expected to be sufficient for settling all loss and loss reserve liabilities on unpaid claims, reflecting changes in the volume of business written, claims frequency and severity, the mix of business, claims processing, and other items that management expects to affect our ultimate settlement of losses and loss expenses. However, the ultimate claim settlements may be higher or lower than reserves established. As our experience emerges and other information develops, we revise our reserve estimates accordingly. The changes in these estimates, resulting from the continuous review process and the differences between estimates and ultimate payments, are reflected in the consolidated statements of income for the period in which such estimates are changed. The associated impacts may be material to the results of operations in future periods. We do not discount to present value that portion of our losses and loss expense reserves expected to be paid in future periods. Our loss and loss expense reserves implicitly include anticipated recoveries for salvage and subrogation claims. (m) Revenue Recognition The Insurance Subsidiaries' net premiums written (“NPW”) include direct insurance policy writings, plus reinsurance assumed and estimates of premiums earned but unbilled on the workers compensation and general liability lines of insurance, less reinsurance ceded. The estimated premium on the workers compensation and general liability lines is referred to as audit premium. We estimate this premium, as it is anticipated to be either billed or returned on policies subsequent to expiration based on exposure levels (i.e. payroll or sales). Audit premium is based on historical trends adjusted for the uncertainty of future economic conditions. Economic instability could ultimately impact our estimates and assumptions, and changes in our estimate may be material to the results of operations in future periods. Premiums written are recognized as revenue over the period that coverage is provided using the semi-monthly pro-rata method. Unearned premiums and prepaid reinsurance premiums represent that portion of premiums written that are applicable to the unexpired terms of policies in force. (n) Dividends to Policyholders We establish reserves for dividends to policyholders on certain policies, most significantly workers compensation policies. These dividends are based on the policyholders' loss experience. The dividend reserves are established based on past experience, adjusted for the effects of current developments and anticipated trends. The expense for these dividends is recognized over a period that begins at policy inception and ends with the payment of the dividend. We do not issue policies that entitle the policyholder to participate in the earnings or surplus of our Insurance Subsidiaries. (o) Federal Income Tax We use the asset and liability method of accounting for income taxes. Current federal income taxes are recognized for the estimated taxes payable or refundable on tax returns for the current year. Deferred federal income taxes arise from the recognition of temporary differences between financial statement carrying amounts and the tax basis of assets and liabilities. We consider all evidence, both positive and negative, with respect to our federal tax loss carryback availability, expected levels of pre-tax financial statement income, and federal taxable income, when evaluating whether the temporary differences will be realized. In projecting future taxable income, we begin with budgeted pre-tax income adjusted for estimated non-taxable items. The assumptions about future taxable income require significant judgment and are consistent with the plans and estimates we use to manage our businesses. A valuation allowance is established when it is more likely than not that some portion of the deferred tax asset will not be realized. A liability for uncertain tax positions is recorded when it is more likely than not that a ta |
Adoption of Accounting Pronounc
Adoption of Accounting Pronouncements Adoption of Accounting Pronouncements (Notes) | 12 Months Ended |
Dec. 31, 2015 | |
Adoption of Accounting Pronouncements [Abstract] | |
Accounting Pronouncements | Adoption of Accounting Pronouncements In July 2013, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2013-11, Income Taxes, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists (a consensus of the FASB Emerging Issues Task Force) ("ASU 2013-11"). ASU 2013-11 applies to all entities with unrecognized tax benefits that also have tax loss or tax credit carryforwards in the same tax jurisdiction as of the reporting date. An unrecognized tax benefit is the difference between a tax position taken or expected to be taken in a tax return and the benefit that is more likely than not sustainable under examination. Under ASU 2013-11, an entity must net an unrecognized tax benefit, or a portion of an unrecognized tax benefit, against deferred tax assets for a net operating loss ("NOL") carryforward, a similar tax loss, or a tax credit carryforward except when: • An NOL carryforward, a similar tax loss, or a tax credit carryfoward is not available as of the reporting date under the governing tax law to settle taxes that would result from the disallowance of the tax position; or • The entity does not intend to use the deferred tax asset for this purpose. If either of these conditions exist, an entity should present an unrecognized tax benefit in the financial statements as a liability and should not net the unrecognized tax benefit with a deferred tax asset. ASU 2013-11 was effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. The adoption of this guidance did not impact our financial condition or results of operation. In January 2014, the FASB issued ASU 2014-01, Accounting for Investments in Qualified Affordable Housing Projects (“ASU 2014-01”). ASU 2014-01 applies to all reporting entities that invest in flow-through limited liability entities that manage or invest in affordable housing projects that qualify for a low-income housing tax credit. ASU 2014-01 permits reporting entities to make an accounting policy election to account for their investments in qualified affordable housing projects using a newly defined "proportional amortization method" if certain conditions are met. This policy election is required to be applied consistently to all qualifying investments, rather than a decision to be applied to individual investments. Under the proportional amortization method, an entity amortizes the initial cost of the investment in proportion to the tax credits and other tax benefits received, and recognizes the net investment performance in the income statement as components of income tax expense (benefit). ASU 2014-01 is effective for public business entities for annual periods and interim periods within those annual periods, beginning after December 15, 2014, with early adoption being permitted. During the third quarter of 2014, we adopted this guidance and have made a policy election to use the proportional amortization method. The adoption of this guidance did not materially impact our financial condition or results of operation. In April 2015, the FASB issued ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs (“ASU 2015-03”). ASU 2015-03 requires debt issuance costs to be netted against the related debt liability in the balance sheet rather than presented as a separate asset. However, ASU 2015-03 does not address the presentation or subsequent measurement of debt issuance costs related to line-of-credit arrangements. Therefore, in August 2015, the FASB issued ASU 2015-15, Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements - Amendments to SEC Paragraphs Pursuant to Staff Announcement at June 18, 2015 EITF Meeting (“ASU 2015-15”). ASU 2015-15 clarifies that, in the absence of authoritative guidance on line-of-credit arrangements within ASU 2015-03, the SEC would not object to the deferral and presentation of debt issuance costs as an asset and the subsequent amortization of the deferred costs over the term of the line-of-credit arrangement. We adopted this guidance retrospectively, effective in the fourth quarter of 2015. As such, all historical data in this Form 10-K has been restated to reflect the revised guidance, as follows: Balance Sheet Information Year ended December 31, 2014 ($ in thousands) As Originally Reported As Restated Other Assets $ 73,215 66,607 Total Assets 6,581,550 6,574,942 Notes Payable 379,297 372,689 Total Liabilities 5,305,964 5,299,356 Total Liabilities and Stockholders' Equity 6,581,550 6,574,942 Income Statement Information Year ended December 31, 2014 2013 ($ in thousands) As Originally Reported As Restated As Originally Reported As Restated Interest Expense $ 22,086 23,063 $ 22,538 26,361 Other Expense 33,673 32,696 35,686 31,863 Pronouncements to be effective in the future In June 2014, the FASB issued ASU 2014-12, Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period (“ASU 2014-12”). ASU 2014-12 requires that performance targets that affect vesting and could be achieved after the requisite service period be treated as performance conditions. The effective date for ASU 2014-12 is for interim and annual periods beginning after December 15, 2015. The amendments in ASU 2014-12 may be applied either prospectively to all awards granted or modified after the effective date or retrospectively to all awards with performance targets that are outstanding as of the beginning of the earliest annual period presented and all modified awards thereafter. The adoption of ASU 2014-12 will not affect us, as we are currently recording expense consistent with the requirements of this accounting update. In August 2014, the FASB issued ASU 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (“ASU 2014-15”). ASU 2014-15 is intended to define management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and provide related footnote disclosures. ASU 2014-15 is effective for annual periods ending after December 15, 2016, and interim periods within annual periods beginning after December 15, 2016. Early application is permitted. As the requirements of this literature are disclosure only, ASU 2014-15 will not impact the our financial condition or results of operations. In February 2015, the FASB issued ASU 2015-02, Amendments to the Consolidation Analysis (“ASU 2015-02”). ASU 2015-02 affects the following areas: (i) limited partnerships and similar legal entities; (ii) the evaluation of fees paid to a decision maker or a service provider as a variable interest; (iii) the effect of fee arrangements on the primary beneficiary determination; (iv) the effect of related parties on the primary beneficiary determination; and (v) certain investment funds. ASU 2015-02 is effective for interim and annual reporting periods beginning after December 15, 2015. The amendments in ASU 2015-02 may be applied either retrospectively or by applying a modified retrospective approach, which would include recording a cumulative-effect adjustment to equity as of the beginning of the fiscal year of adoption. While we anticipate that our limited partnership and tax credit investments will be variable interest entities under the new guidance, we do not anticipate being the primary beneficiary of any of these investments. As such, we do not expect a material impact on our financial condition or results of operations from the adoption of this guidance. In April 2015, the FASB issued ASU 2015-05, Customer's Accounting for Fees Paid in a Cloud Computing Arrangement (“ASU 2015-05”). ASU 2015-05 provides guidance to customers with cloud computing arrangements that include a software license. If a cloud computing arrangement includes a software license, the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. ASU 2015-05 is effective for interim and annual reporting periods beginning after December 15, 2015. Early adoption is permitted. The amendments in ASU 2015-05 can be adopted either prospectively, to all arrangements entered into or materially modified after the effective date, or retrospectively. We do not expect a material impact on our financial condition or results of operations from the adoption of this guidance. In May 2015, the FASB issued ASU 2015-07, Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent) (“ASU 2015-07”). ASU 2015-07 provides guidance that investments for which the practical expedient is used to measure fair value at net asset value per share ("NAV") must be removed from the fair value hierarchy. Instead, those investments must be included as a reconciling line item so that the total fair value amount of investments in the disclosure is consistent with the amount on the balance sheet. ASU 2015-07 also includes disclosure requirements for investments for which the NAV practical expedient was used to determine fair value. ASU 2015-07 is effective for interim and annual reporting periods beginning after December 15, 2015. Early adoption is permitted. The amendments in ASU 2015-07 should be applied retrospectively to all periods presented. As the requirements of this literature are disclosure only, the application of this guidance will not impact our financial condition or results of operations. In May 2015, the FASB issued ASU 2015-09, Disclosures about Short-Duration Contracts (“ASU 2015-09”). ASU 2015-09 requires companies that issue short duration contracts to disclose additional information, including: (i) incurred and paid claims development tables; (ii) frequency and severity of claims; and (iii) information about material changes in judgments made in calculating the liability for unpaid claim adjustment expenses, including reasons for the change and the effects on the financial statements. ASU 2015-09 is effective for annual periods beginning after December 15, 2015, and interim periods within annual periods beginning after December 15, 2016. The amendments in ASU 2015-09 should be applied retrospectively by providing comparative disclosures for each period presented, except for those requirements that apply only to the current period. As the requirements of this literature are disclosure only, the application of this guidance will not impact our financial condition or results of operations. |
Statements of Cash Flow
Statements of Cash Flow | 12 Months Ended |
Dec. 31, 2015 | |
Supplemental Cash Flow Information [Abstract] | |
Statements of Cash Flow | Statements of Cash Flow Supplemental cash flow information for the years ended December 31, 2015, 2014, and 2013 is as follows: ($ in thousands) 2015 2014 2013 Cash paid during the period for: Interest $ 21,892 22,221 21,465 Federal income tax 39,500 22,699 20,000 Non-cash items: Tax-free exchange of fixed income securities, AFS 36,792 20,781 37,965 Tax-free exchange of fixed income securities, HTM 15,257 4,289 15,820 Stock split related to equity securities, AFS 4,239 334 — Assets acquired under capital lease arrangements 6,760 5,642 2,583 Non-cash purchase of property and equipment — 338 20 Included in "Other assets" on the Consolidated Balance Sheet was $11.9 million at December 31, 2015 and $6.0 million at December 31, 2014 of cash received from the National Flood Insurance Program ("NFIP") which is restricted to pay flood claims under the Write Your Own ("WYO") Program. |
Investments
Investments | 12 Months Ended |
Dec. 31, 2015 | |
Investments [Abstract] | |
Investments | Investments (a) Net unrealized gains on investments included in OCI by asset class were as follows for the years ended December 31, 2015, 2014, and 2013 : ($ in thousands) 2015 2014 2013 AFS securities: Fixed income securities $ 55,689 90,336 39,559 Equity securities 13,235 32,389 37,421 Total AFS securities 68,924 122,725 76,980 HTM securities: Fixed income securities 300 958 2,257 Total HTM securities 300 958 2,257 Total net unrealized gains 69,224 123,683 79,237 Deferred income tax expense (24,228 ) (43,289 ) (27,733 ) Net unrealized gains, net of deferred income tax 44,996 80,394 51,504 (Decrease) increase in net unrealized gains in OCI, net of deferred income tax $ (35,398 ) 28,890 (70,824 ) (b) The amortized cost, net unrealized gains and losses, carrying value, unrecognized holding gains and losses, and fair value of HTM fixed income securities were as follows: December 31, 2015 Net Unrealized Unrecognized Unrecognized Amortized Gains Carrying Holding Holding Fair ($ in thousands) Cost (Losses) Value Gains Losses Value Obligations of state and political subdivisions $ 175,269 848 176,117 5,763 — 181,880 Corporate securities 20,228 (185 ) 20,043 1,972 — 22,015 ABS 1,030 (120 ) 910 118 — 1,028 CMBS 4,527 (243 ) 4,284 337 — 4,621 Total HTM fixed income securities $ 201,054 300 201,354 8,190 — 209,544 December 31, 2014 Net Unrealized Unrecognized Unrecognized Amortized Gains Carrying Holding Holding Fair ($ in thousands) Cost (Losses) Value Gains Losses Value Foreign government $ 5,292 47 5,339 55 — 5,394 Obligations of state and political subdivisions 285,301 2,071 287,372 11,760 — 299,132 Corporate securities 18,899 (273 ) 18,626 2,796 — 21,422 ABS 2,818 (455 ) 2,363 460 — 2,823 CMBS 4,869 (432 ) 4,437 753 — 5,190 Total HTM fixed income securities $ 317,179 958 318,137 15,824 — 333,961 Unrecognized holding gains and losses of HTM securities are not reflected in the Financial Statements, as they represent fair value fluctuations from the later of: (i) the date a security is designated as HTM either through purchase or transfer from AFS; or (ii) the date that an OTTI charge is recognized on an HTM security, through the date of the balance sheet. Our HTM securities had an average duration of 1.5 years as of December 31, 2015 . (c) The cost/amortized cost, unrealized gains and losses, and fair value of AFS securities were as follows: December 31, 2015 Cost/ Amortized Unrealized Unrealized Fair ($ in thousands) Cost Gains Losses Value AFS fixed income securities: U.S. government and government agencies $ 99,485 4,721 (91 ) 104,115 Foreign government 14,885 298 (2 ) 15,181 Obligations of states and political subdivisions 1,314,779 44,523 (160 ) 1,359,142 Corporate securities 1,892,296 23,407 (15,521 ) 1,900,182 ABS 244,541 531 (918 ) 244,154 CMBS 1 245,252 750 (2,410 ) 243,592 RMBS 2 541,276 4,274 (3,713 ) 541,837 Total AFS fixed income securities 4,352,514 78,504 (22,815 ) 4,408,203 AFS equity securities: Common stock 181,991 14,796 (1,998 ) 194,789 Preferred stock 11,825 477 (40 ) 12,262 Total AFS equity securities 193,816 15,273 (2,038 ) 207,051 Total AFS securities $ 4,546,330 93,777 (24,853 ) 4,615,254 December 31, 2014 Cost/ Amortized Unrealized Unrealized Fair ($ in thousands) Cost Gains Losses Value AFS fixed income securities: U.S. government and government agencies $ 116,666 7,592 (128 ) 124,130 Foreign government 27,035 796 — 27,831 Obligations of states and political subdivisions 1,208,776 38,217 (729 ) 1,246,264 Corporate securities 1,763,427 42,188 (5,809 ) 1,799,806 ABS 176,837 760 (373 ) 177,224 CMBS 1 177,932 2,438 (777 ) 179,593 RMBS 2 505,113 8,587 (2,426 ) 511,274 Total AFS fixed income securities 3,975,786 100,578 (10,242 ) 4,066,122 AFS equity securities: Common stock 159,011 32,721 (332 ) 191,400 Total AFS equity securities 159,011 32,721 (332 ) 191,400 Total AFS securities $ 4,134,797 133,299 (10,574 ) 4,257,522 1 CMBS includes government guaranteed agency securities with a fair value of $4.5 million at December 31, 2015 and $13.2 million at December 31, 2014 . 2 RMBS includes government guaranteed agency securities with a fair value of $19.7 million at December 31, 2015 and $32.4 million at December 31, 2014 . Unrealized gains and losses of AFS securities represent fair value fluctuations from the later of: (i) the date a security is designated as AFS; or (ii) the date that an OTTI charge is recognized on an AFS security, through the date of the balance sheet. These unrealized gains and losses are recorded in AOCI on the Consolidated Balance Sheets. (d) The following tables summarize, for all securities in a net unrealized/unrecognized loss position at December 31, 2015 and December 31, 2014 , the fair value and pre-tax net unrealized/unrecognized loss by asset class and by length of time those securities have been in a net loss position: December 31, 2015 Less than 12 months 12 months or longer ($ in thousands) Fair Value Unrealized Losses 1 Fair Value Unrealized Losses 1 AFS fixed income securities: U.S. government and government agencies $ 16,006 (87 ) 396 (4 ) Foreign government 1,067 (2 ) — — Obligations of states and political subdivisions 28,617 (160 ) — — Corporate securities 761,479 (12,671 ) 50,382 (2,850 ) ABS 197,477 (807 ) 12,022 (111 ) CMBS 146,944 (2,196 ) 15,385 (214 ) RMBS 264,914 (1,992 ) 63,395 (1,721 ) Total AFS fixed income securities 1,416,504 (17,915 ) 141,580 (4,900 ) AFS equity securities: Common stock 31,148 (1,998 ) — — Preferred stock 1,531 (40 ) — — Total AFS equity securities 32,679 (2,038 ) — — Subtotal $ 1,449,183 (19,953 ) 141,580 (4,900 ) Less than 12 months 12 months or longer ($ in thousands) Fair Value Unrealized Losses 1 Unrecognized Gains 2 Fair Value Unrealized Losses 1 Unrecognized Gains 2 HTM securities: ABS $ — — — 805 (122 ) 116 Subtotal — — — 805 (122 ) 116 Total AFS and HTM $ 1,449,183 (19,953 ) — 142,385 (5,022 ) 116 December 31, 2014 Less than 12 months 12 months or longer ($ in thousands) Fair Value Unrealized Losses 1 Fair Value Unrealized Losses 1 AFS fixed income securities: U.S. government and government agencies $ 7,567 (13 ) 10,866 (115 ) Obligations of states and political subdivisions 47,510 (105 ) 64,018 (624 ) Corporate securities 276,648 (1,734 ) 153,613 (4,075 ) ABS 113,202 (178 ) 15,618 (195 ) CMBS 12,799 (34 ) 59,219 (743 ) RMBS 3,399 (8 ) 138,724 (2,418 ) Total AFS fixed income securities 461,125 (2,072 ) 442,058 (8,170 ) AFS equity securities: Common stock 5,262 (336 ) — — Total AFS equity securities 5,262 (336 ) — — Subtotal $ 466,387 (2,408 ) 442,058 (8,170 ) Less than 12 months 12 months or longer ($ in thousands) Fair Value Unrealized Losses 1 Unrecognized Gains 2 Fair Value Unrealized Losses 1 Unrecognized Gains 2 HTM securities: Obligations of states and political subdivisions $ 196 (3 ) 1 — — — ABS — — — 2,235 (455 ) 439 Subtotal 196 (3 ) 1 2,235 (455 ) 439 Total AFS and HTM $ 466,583 (2,411 ) 1 444,293 (8,625 ) 439 1 Gross unrealized losses include non-OTTI unrealized amounts and OTTI losses recognized in AOCI. In addition, this column includes remaining unrealized gain or loss amounts on securities that were transferred to an HTM designation in the first quarter of 2009 for those securities that are in a net unrealized/unrecognized loss position. 2 Unrecognized holding gains represent fair value fluctuations from the later of: (i) the date a security is designated as HTM; or (ii) the date that an OTTI charge is recognized on an HTM security. The table below provides our net unrealized/unrecognized loss positions by impairment severity as of December 31, 2015 compared to the prior year: ($ in thousands) December 31, 2015 December 31, 2014 Number of Issues % of Market/Book Unrealized/Unrecognized Loss Number of Issues % of Market/Book Unrealized/ Unrecognized Loss 606 80% - 99% $ 22,971 350 80% - 99% $ 10,596 3 60% - 79% 1,888 — 60% - 79% — — 40% - 59% — — 40% - 59% — — 20% - 39% — — 20% - 39% — — 0% - 19% — — 0% - 19% — $ 24,859 $ 10,596 At December 31, 2015 , we had 609 securities in an aggregate unrealized/unrecognized loss position of $24.9 million , compared to 350 securities in an aggregate unrealized/unrecognized loss position of $10.6 million at December 31, 2014 . Although the number of issues increased, the severity of impairment on these securities remained consistent at an average of 2% of amortized cost at December 31, 2015 and December 31, 2014. The primary driver behind the increase in the unrealized/unrecognized loss balance was our corporate fixed income securities portfolio, which was impacted by widening credit spreads. We do not intend to sell any of the securities in the table above, nor do we believe we will be required to sell any of these securities. Additionally, we have reviewed these securities in accordance with our OTTI policy, as described in Note 2. “Summary of Significant Accounting Policies” of this Form 10-K and have concluded that they are temporarily impaired as of December 31, 2015 . This conclusion reflects our current judgment as to the financial position and future prospects of the entity that issued the security and underlying collateral. If our judgment about an individual security changes in the future, we may ultimately record a credit loss after having originally concluded that one did not exist, which could have a material impact on our net income and financial position in future periods. (e) Fixed income securities at December 31, 2015 , by contractual maturity are shown below. MBS are included in the maturity tables using the estimated average life of each security. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. Listed below are HTM fixed income securities at December 31, 2015 : ($ in thousands) Carrying Value Fair Value Due in one year or less $ 98,601 99,872 Due after one year through five years 89,231 94,358 Due after five years through 10 years 13,522 15,314 Total HTM fixed income securities $ 201,354 209,544 Listed below are AFS fixed income securities at December 31, 2015 : ($ in thousands) Fair Value Due in one year or less $ 472,331 Due after one year through five years 2,135,301 Due after five years through 10 years 1,733,858 Due after 10 years 66,713 Total AFS fixed income securities $ 4,408,203 (f) The following table summarizes our other investment portfolio by strategy and the remaining commitment amount associated with each strategy: Other Investments Carrying Value 2015 December 31, December 31, Remaining ($ in thousands) 2015 2014 Commitment Alternative Investments Private equity $ 35,088 48,538 30,204 Private credit 13,246 18,533 15,129 Real assets 19,500 25,897 25,820 Total alternative investments 67,834 92,968 71,153 Other securities 10,008 6,235 3,200 Total other investments $ 77,842 99,203 74,353 The following is a description of our alternative investment strategies: Our private equity strategy includes the following: • Secondary Private Equity : This strategy purchases seasoned private equity funds from investors desiring liquidity prior to normal fund termination. Investments are made across all sectors of the private equity market, including leveraged buyouts ("LBO"), venture capital, distressed securities, mezzanine financing, real estate, and infrastructure. • Primary Private Equity : This strategy makes private equity investments, primarily in established large and middle market companies across diverse industries globally. • Venture Capital : In general, these investments are made principally by investing in equity securities of privately-held corporations, for long-term capital appreciation. This strategy makes private equity investments in growth equity and buyout partnerships. Our private credit strategy includes the following: • Mezzanine Financing : This strategy provides privately negotiated fixed income securities, generally with an equity component, to LBO firms and private and publicly traded large, mid and small-cap companies to finance LBOs, recapitalizations, and acquisitions. • Distressed Debt : This strategy makes direct and indirect investments in debt and equity securities of companies that are experiencing financial and/or operational distress. Investments include buying indebtedness of bankrupt or financially troubled companies, small balance loan portfolios, special situations and capital structure arbitrage trades, commercial real estate mortgages and similar non-U.S. securities and debt obligations. Our real assets strategy includes the following: • Energy & Power Generation : This strategy makes energy and power generation investments in cash flow generating infrastructure assets. Energy investments are made in a variety of industries including oil, natural gas, and coal. These investments are diversified across the energy supply chain and include assets in the exploration and production, pipeline, and refining sectors. Power generation includes investments in: (i) conventional power, such as natural gas and oil; (ii) renewable power, such as wind and solar; and (iii) electric transmission and distribution. • Real Estate : This strategy invests opportunistically in real estate in North America, Europe, and Asia via direct property ownership, joint ventures, mortgages, and investments in equity and debt instruments. Our alternative investment strategies employ low or moderate levels of leverage and generally use hedging only to reduce foreign exchange or interest rate volatility. At this time, our alternative investment strategies do not include hedge funds. We cannot redeem our investments with the general partners of these investments; however, occasionally these partnerships can be traded on the secondary market. Once liquidation is triggered by clauses within the limited partnership agreements or at the funds’ stated end date, we will receive our final allocation of capital and any earned appreciation of the underlying investments, assuming we have not divested ourselves of our partnership interests prior to that time. We currently receive distributions from these alternative investments through the realization of the underlying investments in the limited partnerships. We anticipate that the general partners of these alternative investments will liquidate their underlying investment portfolios through 2028. The following tables set forth summarized financial information for our other investments portfolio, including the portion not owned by us. The investments are carried under the equity method of accounting. The last line in the income statement information table below reflects our share of the aggregate income, which is the portion included in our Financial Statements. As the majority of these investments report results to us on a one quarter lag, the summarized financial statement information is as of, and for the 12-month period ended, September 30: Balance Sheet Information September 30, ($ in millions) 2015 2014 Investments $ 7,527 10,096 Total assets 8,515 10,695 Total liabilities 316 545 Total partners’ capital 8,199 10,150 Income Statement Information 12 months ended September 30, ($ in millions) 2015 2014 2013 Net investment income $ 129 226 406 Realized gains 1,187 581 913 Net change in unrealized (depreciation) appreciation (1,364 ) 1,098 382 Net income $ (48 ) 1,905 1,701 Insurance Subsidiaries' other investments income (1.9 ) 13.6 15.2 (g) We did not have exposure to any credit concentration risk of a single issuer greater than 10% of our stockholder's equity, other than certain U.S. government agencies, as of December 31, 2015 or December 31, 2014 . (h) We have pledged certain AFS fixed income securities as collateral related to: (i) our outstanding borrowing of $ $60 million with the Federal Home Loan Bank of Indianapolis ("FHLBI"); (ii) our reinsurance obligations related to our 2011 acquisition of our E&S book of business; and (iii) our compliance with insurance laws by placing certain securities on deposit with various state and regulatory agencies. We retain all rights regarding all securities pledged as collateral. The following table summarizes the market value of these securities at December 31, 2015 : ($ in millions) FHLBI Collateral Reinsurance Collateral State and Regulatory Deposits Total U.S. government and government agencies $ 7.5 — 24.0 31.5 Obligations of states and political subdivisions — 5.0 — 5.0 Corporate securities — 4.7 — 4.7 CMBS 1.2 — — 1.2 RMBS 55.0 1.8 — 56.8 Total pledged as collateral $ 63.7 11.5 24.0 99.2 (i) The components of pre-tax net investment income earned were as follows: ($ in thousands) 2015 2014 2013 Fixed income securities $ 123,230 126,489 121,582 Equity securities, dividend income 9,161 7,449 6,140 Short-term investments 112 66 117 Other investments (1,890 ) 13,580 15,208 Investment expenses (9,297 ) (8,876 ) (8,404 ) Net investment income earned $ 121,316 138,708 134,643 (j) The following tables summarize OTTI by asset type for the periods indicated: 2015 Recognized in ($ in thousands) Gross Included in OCI Earnings AFS fixed income securities: Corporate securities $ 2,188 — 2,188 RMBS 1 — 1 Total AFS fixed income securities 2,189 — 2,189 AFS equity securities: Common stock 15,996 — 15,996 Preferred stock 181 — 181 Total AFS equity securities 16,177 — 16,177 Total OTTI losses $ 18,366 — 18,366 2014 Recognized in ($ in thousands) Gross Included in OCI Earnings AFS fixed income securities: RMBS $ 7 — 7 Total AFS fixed income securities 7 — 7 AFS equity securities: Common stock 10,517 — 10,517 Total AFS equity securities 10,517 — 10,517 Other investments 580 — 580 Total OTTI losses $ 11,104 — 11,104 2013 Recognized in ($ in thousands) Gross Included in OCI Earnings HTM fixed income securities: ABS $ (44 ) (47 ) 3 Total HTM fixed income securities (44 ) (47 ) 3 AFS fixed income securities: RMBS 16 (30 ) 46 Total AFS fixed income securities 16 (30 ) 46 AFS equity securities: Common stock 3,747 — 3,747 Total AFS equity securities 3,747 — 3,747 Other investments 1,847 — 1,847 Total OTTI losses $ 5,566 (77 ) 5,643 The majority of the OTTI charges in 2015 , 2014 , and 2013 were comprised of charges on our equity portfolio. A significant portion of these charges relate to securities for which we had the intent to sell in relation to a change in our high dividend yield strategy and the remaining equity charges relate to securities that we did not believe would recover in the near term. (k) The components of net realized gains, excluding OTTI charges, were as follows: ($ in thousands) 2015 2014 2013 HTM fixed income securities Gains $ 5 2 195 Losses (1 ) (20 ) (95 ) AFS fixed income securities Gains 4,515 1,945 3,340 Losses (312 ) (392 ) (373 ) AFS equity securities Gains 29,168 36,871 24,776 Losses (1,347 ) (704 ) (408 ) Other investments Gains 162 1 — Losses (653 ) — (1,060 ) Total other net realized investment gains $ 31,537 37,703 26,375 Realized gains and losses on the sale of investments are determined on the basis of the cost of the specific investments sold. Proceeds from the sale of AFS securities were $234.1 million in 2015 , $259.0 million in 2014 , and $135.9 million in 2013 . Net realized gains in 2015 , excluding OTTI charges, were driven by the sale of AFS securities due to a change in our dividend equity strategy from a quantitative, model-driven stock selection strategy to a fundamentally-based stock selection approach that incorporates an assessment of the sustainability and growth rate of a company's dividends and future cash flow. Net realized gains in 2014 and 2013 , excluding OTTI charges, were driven by the sale of AFS equity securities due to the quantitative rebalancing of our dividend yield strategy holdings within our equity portfolio. |
Comprehensive Income
Comprehensive Income | 12 Months Ended |
Dec. 31, 2015 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |
Comprehensive Income | Comprehensive Income (a) The components of comprehensive income, both gross and net of tax, for 2015 , 2014 , and 2013 were as follows: 2015 ($ in thousands) Gross Tax Net Net income $ 232,692 66,831 165,861 Components of OCI: Unrealized gains on investment securities : Unrealized holding losses during the year (40,221 ) (14,078 ) (26,143 ) Amounts reclassified into net income: HTM securities (580 ) (203 ) (377 ) Non-credit OTTI 357 125 232 Realized gains on AFS securities (14,016 ) (4,906 ) (9,110 ) Net unrealized losses (54,460 ) (19,062 ) (35,398 ) Defined benefit pension and post-retirement plans: Net actuarial gain 2,438 853 1,585 Amounts reclassified into net income: Net actuarial loss 7,077 2,477 4,600 Defined benefit pension and post-retirement plans 9,515 3,330 6,185 Other comprehensive loss (44,945 ) (15,732 ) (29,213 ) Comprehensive income $ 187,747 51,099 136,648 2014 ($ in thousands) Gross Tax Net Net income $ 197,131 55,304 141,827 Components of OCI: Unrealized gains on investment securities : Unrealized holding gains during the year 72,940 25,529 47,411 Amounts reclassified into net income: HTM securities (1,299 ) (455 ) (844 ) Non-credit OTTI 1,669 584 1,085 Realized gains on AFS securities (28,864 ) (10,102 ) (18,762 ) Net unrealized gains 44,446 15,556 28,890 Defined benefit pension and post-retirement plans: Net actuarial loss (54,136 ) (18,947 ) (35,189 ) Amounts reclassified into net income: Net actuarial loss 1,902 666 1,236 Defined benefit pension and post-retirement plans (52,234 ) (18,281 ) (33,953 ) Other comprehensive loss (7,788 ) (2,725 ) (5,063 ) Comprehensive income $ 189,343 52,579 136,764 2013 ($ in thousands) Gross Tax Net Net income $ 142,267 35,849 106,418 Components of OCI: Unrealized losses on investment securities : Unrealized holding losses during the period (83,934 ) (29,377 ) (54,557 ) Non-credit OTTI recognized in OCI 77 27 50 Amounts reclassified into net income: HTM securities (1,577 ) (552 ) (1,025 ) Non-credit OTTI 14 5 9 Realized gains on AFS securities (23,540 ) (8,239 ) (15,301 ) Net unrealized losses (108,960 ) (38,136 ) (70,824 ) Defined benefit pension and post-retirement plans: Net actuarial gain 59,654 20,879 38,775 Amounts reclassified into net income: Net actuarial loss 4,374 1,531 2,843 Prior service cost 10 4 6 Curtailment expense 16 5 11 Defined benefit pension and post-retirement plans 64,054 22,419 41,635 Other comprehensive loss (44,906 ) (15,717 ) (29,189 ) Comprehensive income $ 97,361 20,132 77,229 (b) The balances of, and changes in, each component of AOCI (net of taxes) as of December 31, 2015 and 2014 were as follows: Net Unrealized (Loss) Gain on Investment Securities ($ in thousands) OTTI Related HTM Related All Other Investments Subtotal Defined Benefit Pension and Post- retirement Plans Total AOCI Balance, December 31, 2013 $ (1,599 ) 1,467 51,635 51,503 (26,652 ) 24,851 OCI before reclassifications — — 47,411 47,411 (35,189 ) 12,222 Amounts reclassified from AOCI 1,085 (844 ) (18,762 ) (18,521 ) 1,236 (17,285 ) Net current period OCI 1,085 (844 ) 28,649 28,890 (33,953 ) (5,063 ) Balance, December 31, 2014 (514 ) 623 80,284 80,393 (60,605 ) 19,788 OCI before reclassifications — — (26,143 ) (26,143 ) 1,585 (24,558 ) Amounts reclassified from AOCI 232 (377 ) (9,110 ) (9,255 ) 4,600 (4,655 ) Net current period OCI 232 (377 ) (35,253 ) (35,398 ) 6,185 (29,213 ) Balance, December 31, 2015 $ (282 ) 246 45,031 44,995 (54,420 ) (9,425 ) The reclassifications out of AOCI are as follows: Affected Line Item in the Consolidated Statement of Income ($ in thousands) Year ended December 31, 2015 Year ended December 31, 2014 OTTI related Non-credit OTTI on disposed securities $ 357 1,669 Net realized gains 357 1,669 Income from continuing operations, before federal income tax (125 ) (584 ) Total federal income tax expense 232 1,085 Net income HTM related Unrealized gains and losses on HTM disposals 308 157 Net realized investment gains Amortization of net unrealized gains on HTM securities (888 ) (1,456 ) Net investment income earned (580 ) (1,299 ) Income from continuing operations, before federal income tax 203 455 Total federal income tax expense (377 ) (844 ) Net income Realized gains and losses on AFS Realized gains and losses on AFS disposals (14,016 ) (28,864 ) Net realized investment gains (14,016 ) (28,864 ) Income from continuing operations, before federal income tax 4,906 10,102 Total federal income tax expense (9,110 ) (18,762 ) Net income Defined benefit pension and post-retirement life plans Net actuarial loss 1,538 331 Losses and loss expenses incurred 5,539 1,571 Policy acquisition costs 7,077 1,902 Income from continuing operations, before federal income tax Total defined benefit pension and post-retirement life 7,077 1,902 Income from continuing operations, before federal income tax (2,477 ) (666 ) Total federal income tax expense 4,600 1,236 Net income Total reclassifications for the period $ (4,655 ) (17,285 ) Net income |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The following table presents the carrying amounts and estimated fair values of our financial instruments as of December 31, 2015 and 2014 : December 31, 2015 December 31, 2014 ($ in thousands) Carrying Amount Fair Value Carrying Amount Fair Value Financial Assets Fixed income securities: HTM $ 201,354 209,544 318,137 333,961 AFS 4,408,203 4,408,203 4,066,122 4,066,122 Equity securities, AFS 207,051 207,051 191,400 191,400 Short-term investments 194,819 194,819 131,972 131,972 Financial Liabilities Notes payable: 0.63% borrowings from FHLBI 15,000 14,977 — — 1.25% borrowings from FHLBI 45,000 45,083 45,000 45,244 7.25% Senior Notes 49,898 56,929 49,896 59,181 6.70% Senior Notes 99,415 110,363 99,401 114,845 5.875% Senior Notes 185,000 192,474 185,000 185,000 Subtotal 394,313 419,826 379,297 404,270 Unamortized debt issuance costs (6,121 ) (6,608 ) Total notes payable $ 388,192 372,689 For discussion regarding the fair value techniques of our financial instruments, refer to Note 2. "Summary of Significant Accounting Policies" in this Form 10-K. The following tables provide quantitative disclosures of our financial assets that were measured at fair value at December 31, 2015 and 2014 : December 31, 2015 Fair Value Measurements Using ($ in thousands) Assets Measured at Fair Value 12/31/15 Quoted Prices in Active Markets for Identical Assets/ Liabilities (Level 1) 1 Significant Other Observable Inputs (Level 2) 1 Significant Unobservable Inputs (Level 3) Description Measured on a recurring basis: AFS fixed income securities: U.S. government and government agencies $ 104,115 42,702 61,413 — Foreign government 15,181 — 15,181 — Obligations of states and political subdivisions 1,359,142 — 1,359,142 — Corporate securities 1,900,182 — 1,900,182 — ABS 244,154 — 244,154 — CMBS 243,592 — 243,592 — RMBS 541,837 — 541,837 — Total AFS fixed income securities 4,408,203 42,702 4,365,501 — AFS equity securities: Common stock 194,789 191,517 — 3,272 Preferred stock 12,262 12,262 — — Total AFS equity securities 207,051 203,779 — 3,272 Total AFS securities 4,615,254 246,481 4,365,501 3,272 Short-term investments 194,819 194,819 — — Total assets $ 4,810,073 441,300 4,365,501 3,272 December 31, 2014 Fair Value Measurements Using ($ in thousands) Assets Measured at Fair Value 12/31/14 Quoted Prices in Active Markets for Identical Assets/ Liabilities (Level 1) 1 Significant Other Observable Inputs (Level 2) 1 Significant Unobservable Inputs (Level 3) Description Measured on a recurring basis: AFS fixed income securities: U.S. government and government agencies $ 124,130 53,199 70,931 — Foreign government 27,831 — 27,831 — Obligations of states and political subdivisions 1,246,264 — 1,246,264 — Corporate securities 1,799,806 — 1,799,806 — ABS 177,224 — 177,224 — CMBS 179,593 — 179,593 — RMBS 511,274 — 511,274 — Total AFS fixed income securities 4,066,122 53,199 4,012,923 — AFS equity securities: Common stock 191,400 188,500 — 2,900 Total AFS equity securities 191,400 188,500 — 2,900 Total AFS securities 4,257,522 241,699 4,012,923 2,900 Short-term investments 131,972 131,972 — — Total assets $ 4,389,494 373,671 4,012,923 2,900 1 There were no transfers of securities between Level 1 and Level 2. There were no changes in the fair value of securities measured using Level 3 prices during 2014. The following table provides a summary of these changes during 2015: 2015 ($ in thousands) Common Stock Fair value, December 31, 2014 $ 2,900 Total net (losses) gains for the period included in: OCI — Net income — Purchases 487 Sales (115 ) Issuances — Settlements — Transfers into Level 3 — Transfers out of Level 3 — Fair value, December 31, 2015 $ 3,272 The following tables provide quantitative information regarding our financial assets and liabilities that were disclosed at fair value at December 31, 2015 and 2014 : December 31, 2015 Fair Value Measurements Using ($ in thousands) Assets/Liabilities Disclosed at Fair Value 12/31/2015 Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Financial Assets HTM: Obligations of states and political subdivisions $ 181,880 — 181,880 — Corporate securities 22,015 — 18,679 3,336 ABS 1,028 — 1,028 — CMBS 4,621 — 4,621 — Total HTM fixed income securities $ 209,544 — 206,208 3,336 Financial Liabilities Notes payable: 0.63% borrowings from FHLBI $ 14,977 — 14,977 — 1.25% borrowings from FHLBI 45,083 — 45,083 — 7.25% Senior Notes 56,929 — 56,929 — 6.70% Senior Notes 110,363 — 110,363 — 5.875% Senior Notes 192,474 192,474 — — Total notes payable $ 419,826 192,474 227,352 — December 31, 2014 Fair Value Measurements Using ($ in thousands) Assets/Liabilities Disclosed at Fair Value 12/31/2014 Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Financial Assets HTM: Foreign government $ 5,394 — 5,394 — Obligations of states and political subdivisions 299,132 — 299,132 — Corporate securities 21,422 — 21,422 — ABS 2,823 — 2,823 — CMBS 5,190 — 5,190 — Total HTM fixed income securities $ 333,961 — 333,961 — Financial Liabilities Notes payable: 1.25% borrowings from FHLBI $ 45,244 — 45,244 — 7.25% Senior Notes 59,181 — 59,181 — 6.70% Senior Notes 114,845 — 114,845 — 5.875% Senior Notes 185,000 185,000 — — Total notes payable $ 404,270 185,000 219,270 — |
Reinsurance
Reinsurance | 12 Months Ended |
Dec. 31, 2015 | |
Reinsurance Disclosures [Abstract] | |
Reinsurance | Reinsurance Our Financial Statements reflect the effects of assumed and ceded reinsurance transactions. Assumed reinsurance refers to the acceptance of certain insurance risks that other insurance entities have underwritten. Ceded reinsurance involves transferring certain insurance risks (along with the related written and earned premiums) that we have underwritten to other insurance companies that agree to share these risks. The primary purpose of ceded reinsurance is to protect the Insurance Subsidiaries from potential losses in excess of the amount that we are prepared to accept. Our major treaties covering property, property catastrophe, and casualty business are excess of loss contracts. In addition, we have an intercompany quota share pooling arrangement and other minor quota share treaties. As a Standard Commercial Lines and E&S Lines writer, we are required to participate in Terrorism Risk Insurance Program Reauthorization Act ("TRIPRA"), which was extended by Congress to December 31, 2020. TRIPRA requires private insurers and the United States government to share the risk of loss on future acts of terrorism certified by the U.S. Secretary of the Treasury. Under TRIPRA, each participating insurer is responsible for paying a deductible of specified losses before federal assistance is available. This deductible is based on a percentage of the prior year’s applicable Standard Commercial Lines and E&S Lines premiums. In 2016 , our deductible is approximately $280 million . For losses above the deductible, the federal government will pay 84% of losses to an industry limit of $100 billion , and the insurer retains 16% . The federal share of losses will be reduced by 1% each year to 80% by 2020. The Insurance Subsidiaries remain liable to policyholders to the extent that any reinsurer becomes unable to meet their contractual obligations. We evaluate and monitor the financial condition of our reinsurers under voluntary reinsurance arrangements to minimize our exposure to significant losses from reinsurer insolvencies. On an ongoing basis, we review amounts outstanding, length of collection period, changes in reinsurer credit ratings, and other relevant factors to determine collectability of reinsurance recoverables. The allowance for uncollectible reinsurance recoverables was $5.7 million at December 31, 2015 and $6.9 million at December 31, 2014 . The following table represents our total reinsurance balances segregated by reinsurer to depict our concentration of risk throughout our reinsurance portfolio: As of December 31, 2015 As of December 31, 2014 ($ in thousands) Reinsurance Balances % of Reinsurance Balance Reinsurance Balances % of Reinsurance Balance Total reinsurance recoverables $ 561,968 $ 581,548 Total prepaid reinsurance premiums 140,889 146,993 Total reinsurance balance 702,857 728,541 Federal and state pools 1 : NFIP 164,130 24 % 172,547 24 % NJ Unsatisfied Claim Judgment Fund 71,884 10 76,342 11 Other 3,136 — 2,557 — Total federal and state pools 239,150 34 251,446 35 Remaining reinsurance balance $ 463,707 66 $ 477,095 65 Munich Re Group (A.M. Best rated "A+") $ 112,889 16 $ 110,270 15 Hannover Ruckversicherungs AG (A.M. Best rated "A+") 99,535 14 100,959 14 AXIS Reinsurance Company (A.M. Best rated "A+") 53,374 8 51,014 7 Swiss Re Group (A.M. Best rated "A+") 51,340 7 55,026 8 Partner Reinsurance Company of the U.S. (A.M. Best rated “Au”) 20,748 3 25,424 3 All other reinsurers 125,821 18 134,402 18 Total reinsurers 463,707 66 % 477,095 65 % Less: collateral 2 (106,449 ) (114,843 ) Reinsurers, net of collateral $ 357,258 $ 362,252 1 Considered to have minimal risk of default. 2 Includes letters of credit, trust funds, and funds held against reinsurance recoverables. Note: Some amounts may not foot due to rounding. Under our reinsurance arrangements, which are prospective in nature, reinsurance premiums ceded are recorded as prepaid reinsurance and amortized over the remaining contract period in proportion to the reinsurance protection provided, or recorded periodically, as per the terms of the contract, in a direct relationship to the gross premium recording. Reinsurance recoveries are recognized as gross losses are incurred. The following table contains a listing of direct, assumed, and ceded reinsurance amounts for premiums written, premiums earned, and losses and loss expenses incurred: ($ in thousands) 2015 2014 2013 Premiums written: Direct $ 2,403,519 2,228,270 2,133,793 Assumed 23,848 26,306 43,650 Ceded (357,463 ) (369,296 ) (367,284 ) Net $ 2,069,904 1,885,280 1,810,159 Premiums earned: Direct $ 2,330,267 2,183,258 2,048,530 Assumed 23,209 34,653 44,464 Ceded (363,567 ) (365,302 ) (356,922 ) Net $ 1,989,909 1,852,609 1,736,072 Losses and loss expenses incurred: Direct $ 1,274,872 1,314,864 1,370,293 Assumed 16,996 26,187 32,678 Ceded (143,327 ) (183,550 ) (281,233 ) Net $ 1,148,541 1,157,501 1,121,738 The ceded premiums and losses related to our participation in the NFIP, under which 100% of our flood premiums, losses and loss expenses are ceded to the NFIP, are as follows: Ceded to NFIP ($ in thousands) 2015 2014 2013 Ceded premiums written $ (228,907 ) (237,718 ) (236,309 ) Ceded premiums earned (233,940 ) (234,224 ) (228,650 ) Ceded losses and loss expenses incurred (62,078 ) (57,323 ) (183,142 ) |
Reserve for Losses and Loss Exp
Reserve for Losses and Loss Expenses | 12 Months Ended |
Dec. 31, 2015 | |
Insurance Loss Reserves [Abstract] | |
Reserves for Losses and Loss Expenses | Reserves for Losses and Loss Expenses The table below provides a roll forward of reserves for losses and loss expenses for beginning and ending reserve balances: ($ in thousands) 2015 2014 2013 Gross reserves for losses and loss expenses, at beginning of year $ 3,477,870 3,349,770 4,068,941 Less: reinsurance recoverable on unpaid losses and loss expenses, at beginning of year 571,978 540,839 1,409,755 Net reserves for losses and loss expenses, at beginning of year 2,905,892 2,808,931 2,659,186 Incurred losses and loss expenses for claims occurring in the: Current year 1,217,550 1,216,770 1,147,263 Prior years (69,009 ) (59,269 ) (25,525 ) Total incurred losses and loss expenses 1,148,541 1,157,501 1,121,738 Paid losses and loss expenses for claims occurring in the: Current year 446,550 468,478 399,559 Prior years 641,174 592,062 572,434 Total paid losses and loss expenses 1,087,724 1,060,540 971,993 Net reserves for losses and loss expenses, at end of year 2,966,709 2,905,892 2,808,931 Add: Reinsurance recoverable on unpaid losses and loss expenses, at end of year 551,019 571,978 540,839 Gross reserves for losses and loss expenses at end of year $ 3,517,728 3,477,870 3,349,770 Our net losses and loss expense reserves increased by $60.8 million in 2015 , $97.0 million in 2014 , and $149.7 million in 2013 . The losses and loss expense reserves are net of anticipated recoveries for salvage and subrogation claims, which amounted to $62.1 million for 2015 , $65.1 million for 2014 , and $61.0 million for 2013 . The changes in the net losses and loss expense reserves were the result of growth in exposures, particularly associated with our E&S Lines of business, anticipated loss trends, and normal reserve changes inherent in the uncertainty in establishing reserves for losses and loss expenses. As additional information is collected in the loss settlement process, reserves are adjusted accordingly. These adjustments are reflected in the Consolidated Statements of Income in the period in which such adjustments are recognized. These changes could have a material impact on the results of operations of future periods when the adjustments are made. In 2015 , we experienced overall favorable loss development of $69.0 million , compared to $ 59.3 million in 2014, and $25.5 million in 2013 . The following table summarizes the prior year development by line of business: (Favorable)/Unfavorable Prior Year Development ($ in millions) 2015 2014 2013 General Liability $ (51.0 ) (43.9 ) (20.0 ) Commercial Automobile 2.4 (4.1 ) (4.5 ) Workers Compensation (37.0 ) — 23.5 Businessowners' Policies 2.2 1.9 (9.5 ) Commercial Property (3.0 ) (2.1 ) (7.5 ) Homeowners 1.5 (4.0 ) (2.5 ) Personal Automobile 0.4 (10.8 ) (3.0 ) E&S 15.5 3.7 (2.0 ) Total $ (69.0 ) (59.3 ) (25.5 ) The prior accident year development during 2015 was favorable by $69.0 million , which included $67.0 million of favorable casualty development and $2.0 million of favorable property development. The favorable casualty reserve development was largely driven by the general liability and workers compensation lines of business. For workers compensation, this was a significant change from 2014, during which period this line experienced no development. Our E&S Lines experienced unfavorable development of $15.5 million . By accident year, the majority of the favorable development was attributable to accident years 2009 through 2013, driven by general liability and workers compensation. This favorable development was partially offset by unfavorable development in accident years 2012 through 2014, which was attributable to our E&S Lines. The prior accident year development during 2014 was favorable by $ 59.3 million , which included $ 48.2 million of favorable casualty development and $ 11.1 million of favorable property development. The property development was primarily related to a prior year reinsurance recoverable. The favorable casualty reserve development was largely driven by the general liability and personal automobile lines of business. These lines both experienced increasingly favorable development in recent years. Conversely, businessowners' policies and our E&S Lines experienced unfavorable emergence in 2014, which was a reversal from 2013. By accident year, the majority of the favorable development was attributable to accident years 2010 through 2012, although earlier accident years also developed favorably. General liability, commercial automobile, and personal automobile all contributed to this development, partially offset by businessowners’ liability. The general liability line of business was the primary driver of this favorable development, which was partially driven by lower severities in the 2010 through 2012 accident years, within both the premises and operations and products liability coverages. In addition, accident years 2011 and 2012 continue to show lower than expected claim counts. The overall favorable development for accident years 2012 and prior was partially offset by unfavorable development in accident year 2013, which was largely attributable to commercial automobile liability, and partially E&S casualty. The prior accident year development during 2013 was favorable by $ 25.5 million , which included $ 14.5 million of favorable casualty development and $ 11.0 million of property development. The property development was primarily related to favorable non-catastrophe loss activity, mostly in the 2012 accident year. The casualty lines were driven largely by favorable development in accident years 2006 through 2010, with lower than expected severities in general liability and commercial automobile. Partially offsetting this favorable development was: (i) unfavorable development in our workers compensation line driven by assisted living claims; and (ii) unfavorable development in accident year 2012 in our commercial automobile lines of business driven by higher than expected severities. Reserves established for liability insurance include exposure to asbestos and environmental claims. These claims have arisen primarily from insured exposures in municipal government, small non-manufacturing commercial risk, and homeowners policies. The emergence of these claims is slow and highly unpredictable. There are significant uncertainties in estimating our exposure to asbestos and environmental claims (for both case and IBNR reserves) resulting from lack of relevant historical data, the delayed and inconsistent reporting patterns associated with these claims, and uncertainty as to the number and identity of claimants and complex legal and coverage issues. Legal issues that arise in asbestos and environmental cases include federal or state venue, choice of law, causation, admissibility of evidence, allocation of damages and contribution among joint defendants, successor and predecessor liability, and whether direct action against insurers can be maintained. Coverage issues that arise in asbestos and environmental cases include the interpretation and application of policy exclusions, the determination and calculation of policy limits, the determination of the ultimate amount of a loss, the extent to which a loss is covered by a policy, if at all, the obligation of an insurer to defend a claim, and the extent to which a party can prove the existence of coverage. Courts have reached different and sometimes inconsistent conclusions on these legal and coverage issues. We do not discount to present value that portion of our losses and loss expense reserves expected to be paid in future periods. The following table details our losses and loss expense reserves for various asbestos and environmental claims: 2015 ($ in millions) Gross Net Asbestos $ 8.0 6.8 Landfill sites 13.1 8.3 Leaking underground storage tanks 9.3 8.1 Total $ 30.4 23.2 Estimating IBNR reserves for asbestos and environmental claims is difficult because of the delayed and inconsistent reporting patterns associated with these claims. In addition, there are significant uncertainties associated with estimating critical assumptions, such as average clean-up costs, third-party costs, potentially responsible party shares, allocation of damages, litigation and coverage costs, and potential state and federal legislative changes. Normal historically based actuarial approaches cannot be applied to asbestos and environmental claims because past loss history is not indicative of future potential asbestos and environmental losses. In addition, while certain alternative models can be applied, such models can produce significantly different results with small changes in assumptions. The following table provides a roll forward of gross and net asbestos and environmental incurred losses and loss expenses and related reserves thereon: 2015 2014 2013 ($ in thousands) Gross Net Gross Net Gross Net Asbestos Reserves for losses and loss expenses at beginning of year $ 8,751 7,314 8,897 7,518 9,170 7,791 Incurred losses and loss expenses (428 ) (77 ) 60 — — — Less: losses and loss expenses paid (299 ) (444 ) (206 ) (204 ) (273 ) (273 ) Reserves for losses and loss expenses at the end of year $ 8,024 6,793 8,751 7,314 8,897 7,518 Environmental Reserves for losses and loss expenses at beginning of year $ 21,902 15,680 23,867 17,649 26,405 19,978 Incurred losses and loss expenses 3,396 3,397 107 — 347 68 Less: losses and loss expenses paid (2,911 ) (2,709 ) (2,072 ) (1,969 ) (2,885 ) (2,397 ) Reserves for losses and loss expenses at the end of year $ 22,387 16,368 21,902 15,680 23,867 17,649 Total Asbestos and Environmental Claims Reserves for losses and loss expenses at beginning of year $ 30,653 22,994 32,764 25,167 35,575 27,769 Incurred losses and loss expenses 2,968 3,320 167 — 347 68 Less: losses and loss expenses paid (3,210 ) (3,153 ) (2,278 ) (2,173 ) (3,158 ) (2,670 ) Reserves for losses and loss expenses at the end of year $ 30,411 23,161 30,653 22,994 32,764 25,167 |
Indebtedness
Indebtedness | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Indebtedness | Indebtedness (a) Notes Payable (1) In the first quarter of 2013, we issued $185 million of 5.875% Senior Notes due 2043. These notes pay interest on February 15, May 15, August 15, and November 15 of each year, beginning on May 15, 2013, and at maturity. The notes are callable by us on or after February 8, 2018, at a price equal to 100% of their principal outstanding amount, plus accrued and unpaid interest to, but excluding, the date of redemption. A portion of the proceeds from this debt issuance was used to fully redeem the $100 million aggregate principal amount of our 7.5% Junior Subordinated Notes due 2066, which had an associated $3.3 million pre-tax write-off for the remaining capitalized debt issuance costs on these notes. Of the remaining net proceeds, $57.1 million was used to make capital contributions to the Insurance Subsidiaries, while the balance was used for general corporate purposes. There are no financial debt covenants to which we are required to comply in regards to these Senior Notes. (2) In the first quarter of 2009 , Selective Insurance Company of the Southeast and Selective Insurance Company of South Carolina (“Indiana Subsidiaries”) joined, and invested in, the FHLBI, which provides them with access to additional liquidity. The Indiana Subsidiaries’ aggregate investment was $2.8 million at December 31, 2015 and $2.9 million at December 31, 2014 . Our investment provides us the ability to borrow approximately 20 times the total amount of the FHLBI common stock purchased with additional collateral, at comparatively low borrowing rates. The following is a summary of the Indiana Subsidiaries’ borrowings from the FHLBI: • In 2011 , the Indiana Subsidiaries borrowed $45 million in the aggregate from the FHLBI. The unpaid principal amount accrues interest of 1.25% , which is paid on the 15th of every month. The principal amount is due on December 16, 2016 . These funds were loaned to the Parent for use in the acquisition of Mesa Underwriters Specialty Insurance Company ("MUSIC") on December 31, 2011. • In January 2015, the Indiana Subsidiaries borrowed $15 million in the aggregate from the FHLBI for general corporate purposes. The unpaid principal amount accrues interest of 0.63% , which is paid on the 15th of every month. The principal amount is due on July 22, 2016 . All borrowings from the FHLBI require security. For information on investments that are pledged as collateral for these borrowings, see Note 5. "Investments" above. (3) In the fourth quarter of 2005, we issued $100 million of 6.70% Senior Notes due 2035 . These notes were issued at a discount of $0.7 million resulting in an effective yield of 6.754% and pay interest on May 1 and November 1 each year commencing on May 1, 2006 . Net proceeds of approximately $50 million were used to fund an irrevocable trust to provide for certain payment obligations in respect of our outstanding debt. The remainder of the proceeds was used for general corporate purposes. The agreements covering these notes contain a standard default cross-acceleration provision that provides the 6.70% Senior Notes will enter a state of default upon the failure to pay principal when due or upon any event or condition that results in an acceleration of principal of any other debt instrument in excess of $10 million that we have outstanding concurrently with the 6.70% Senior Notes. There are no financial debt covenants to which we are required to comply in regards to these notes. (4) In the fourth quarter of 2004, we issued $50 million of 7.25% Senior Notes due 2034 . These notes were issued at a discount of $0.1 million , resulting in an effective yield of 7.27% and pay interest on May 15 and November 15 each year. We contributed $25 million of the bond proceeds to the Insurance Subsidiaries as capital. The remainder of the proceeds was used for general corporate purposes. The agreements covering these notes contain a standard default cross-acceleration provision that provides the 7.25% Senior Notes will enter a state of default upon the failure to pay principal when due or upon any event or condition that results in an acceleration of principal of any other debt instrument in excess of $10 million that we have outstanding concurrently with the 7.25% Senior Notes. There are no financial debt covenants to which we are required to comply in regards to these notes. (b) Short-Term Debt Our Line of Credit was renewed effective December 1, 2015 , with Wells Fargo Bank, National Association, as administrative agent, and Branch Banking and Trust Company, with a borrowing capacity of $30 million , which can be increased to $50 million with the approval of both lending partners. The Line of Credit provides the Parent with an additional source of short-term liquidity. The interest rate on our Line of Credit varies and is based on, among other factors, the Parent’s debt ratings. The Line of Credit expires on December 1, 2020. There have been no balances outstanding under this Line of Credit or the previous credit facility at December 31, 2015 or at any time during 2015 . Our previous Line of Credit, which was in place from September 26, 2013 until December 1, 2015 had the same banking partners and similar terms and conditions as our current facility. The Line of Credit agreement contains representations, warranties, and covenants that are customary for credit facilities of this type, including, without limitation, financial covenants under which we are obligated to maintain a minimum consolidated net worth, minimum combined statutory surplus, and maximum ratio of consolidated debt to total capitalization, and covenants limiting our ability to: (i) merge or liquidate; (ii) incur debt or liens; (iii) dispose of assets; (iv) make investments and acquisitions; and (v) engage in transactions with affiliates. The Line of Credit permits collateralized borrowings from the Federal Home Loan Banks by our Insurance Subsidiaries that are members of those banks so long as the aggregate amount borrowed does not exceed 10% of the respective member's admitted assets from the preceding calendar year. The table below outlines information regarding certain of the covenants in the Line of Credit: Required as of Actual as of December 31, 2015 December 31, 2015 Consolidated net worth $960 million $1.4 billion Statutory surplus Not less than $750 million $1.4 billion Debt-to-capitalization ratio 1 Not to exceed 35% 22.1% A.M. Best financial strength rating Minimum of A- A 1 Calculated in accordance with Line of Credit agreement. In addition to the above requirements, the Line of Credit agreement contains a cross-default provision that provides that the Line of Credit will be in default if we fail to comply with any condition, covenant, or agreement (including payment of principal and interest when due on any debt with an aggregate principal amount of at least $20 million ), which causes or permits the acceleration of principal. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information We classify our business into four reportable segments: • Standard Commercial Lines - comprised of insurance products and services provided in the standard marketplace to our commercial customers, who are typically businesses, non-profit organizations, and local government agencies. • Standard Personal Lines - comprised of insurance products and services, including flood insurance coverage, provided primarily to individuals acquiring coverage in the standard marketplace. • E&S Lines - comprised of insurance products and services provided to customers who have not obtained coverage in the standard marketplace. • Investments - invests the premiums collected by our insurance operations, as well as amounts generated through our capital management strategies, which may include the issuance of debt and equity securities. The disaggregated results of our four segments are used by senior management to manage our operations. These segments are evaluated as follows: • Standard Commercial Lines, Standard Personal Lines, and our E&S Lines are evaluated based on statutory underwriting results (net premiums earned, incurred losses and loss expenses, policyholders dividends, policy acquisition costs, and other underwriting expenses), and statutory combined ratios; and • Our Investments segment is evaluated based on after-tax net investment income and net realized gains and losses. In computing the results of each segment, we do not make adjustments for interest expense or net general corporate expenses. While we do not fully allocate taxes to all segments, we do allocate taxes to our investments segment as we manage that segment on after-tax results. We do not maintain separate investment portfolios for the segments and therefore, do not allocate assets to the segments. Our combined insurance segments are subject to certain geographic concentrations, particularly in the Northeast and Mid-Atlantic regions of the country. In 2015 , approximately 21% of NPW were related to insurance policies written in New Jersey. The goodwill balance of $7.8 million at both December 31, 2015 and 2014 relates to our Standard Commercial Lines reporting unit. The following summaries present revenues from continuing operations (net investment income and net realized gains on investments in the case of the Investments segment) and pre-tax income from continuing operations for the individual segments: Revenue by Segment Years ended December 31, ($ in thousands) 2015 2014 2013 Standard Commercial Lines: Net premiums earned: Commercial automobile $ 358,909 333,310 310,994 Workers compensation 290,075 274,585 267,612 General liability 483,291 444,938 405,322 Commercial property 269,022 244,792 224,412 Businessowners’ policies 93,428 85,788 77,097 Bonds 20,350 19,288 19,000 Other 14,367 13,011 12,182 Miscellaneous income 6,343 14,747 10,253 Total Standard Commercial Lines revenue 1,535,785 1,430,459 1,326,872 Standard Personal Lines: Net premiums earned: Personal automobile 146,784 151,317 152,005 Homeowners 134,382 134,273 127,991 Other 6,968 11,157 14,336 Miscellaneous income 1,113 1,834 1,948 Total Standard Personal Lines revenue 289,247 298,581 296,280 E&S Lines: Net premiums earned: General liability 121,802 96,142 88,761 Commercial property 42,736 38,572 32,054 Commercial automobile 7,795 5,436 4,306 Miscellaneous income — 17 — Total E&S Lines revenue 172,333 140,167 125,121 Investments: Net investment income 121,316 138,708 134,643 Net realized investment gains 13,171 26,599 20,732 Total investment revenues 134,487 165,307 155,375 Total all segments 2,131,852 2,034,514 1,903,648 Other income — 347 93 Total revenues $ 2,131,852 2,034,861 1,903,741 Income from Continuing Operations before Federal Income Tax Years ended December 31, ($ in thousands) 2015 2014 2013 Standard Commercial Lines: Underwriting gain, before federal income tax $ 164,496 61,221 33,856 GAAP combined ratio 89.2 % 95.7 % 97.4 % Statutory combined ratio 89.2 % 95.5 % 97.1 % Standard Personal Lines: Underwriting gain, before federal income tax 1,336 16,536 8,645 GAAP combined ratio 99.5 % 94.4 % 97.1 % Statutory combined ratio 99.9 % 94.5 % 96.9 % E&S Lines: Underwriting (loss) gain, before federal income tax (16,803 ) 386 (3,735 ) GAAP combined ratio 109.8 % 99.7 % 103.0 % Statutory combined ratio 108.4 % 99.2 % 102.9 % Investments: Net investment income $ 121,316 138,708 134,643 Net realized investment gains 13,171 26,599 20,732 Total investment income, before federal income tax 134,487 165,307 155,375 Tax on investment income 32,090 43,811 40,489 Total investment income, after federal income tax $ 102,397 121,496 114,886 Reconciliation of Segment Results to Income from Continuing Operations, before Federal Income Tax Years ended December 31, ($ in thousands) 2015 2014 2013 Underwriting gain (loss), before federal income tax Standard Commercial Lines $ 164,496 61,221 33,856 Standard Personal Lines 1,336 16,536 8,645 E&S Lines (16,803 ) 386 (3,735 ) Investment income, before federal income tax 134,487 165,307 155,375 Total all segments 283,516 243,450 194,141 Interest expense (22,428 ) (23,063 ) (26,361 ) General corporate and other expenses (28,396 ) (23,256 ) (23,978 ) Income from continuing operations, before federal income tax $ 232,692 197,131 143,802 |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings per Share The following table provides a reconciliation of the numerators and denominators of basic and diluted earnings per share ("EPS"): 2015 Income Shares Per Share ($ in thousands, except per share amounts) (Numerator) (Denominator) Amount Basic EPS: Net income available to common stockholders $ 165,861 57,212 $ 2.90 Effect of dilutive securities: Stock compensation plans — 944 Diluted EPS: Net income available to common stockholders $ 165,861 58,156 $ 2.85 2014 Income Shares Per Share ($ in thousands, except per share amounts) (Numerator) (Denominator) Amount Basic EPS: Net income available to common stockholders $ 141,827 56,310 $ 2.52 Effect of dilutive securities: Stock compensation plans — 1,041 Diluted EPS: Net income available to common stockholders $ 141,827 57,351 $ 2.47 2013 Income Shares Per Share ($ in thousands, except per share amounts) (Numerator) (Denominator) Amount Basic EPS: Net income from continuing operations $ 107,415 55,638 $ 1.93 Net loss from discontinued operations (997 ) 55,638 (0.02 ) Net income available to common stockholders $ 106,418 55,638 $ 1.91 Effect of dilutive securities: Stock compensation plans — 1,172 Diluted EPS: Net income from continuing operations $ 107,415 56,810 $ 1.89 Net loss from discontinued operations (997 ) 56,810 (0.02 ) Net income available to common stockholders $ 106,418 56,810 $ 1.87 |
Federal Income Taxes
Federal Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Federal Income Taxes | Federal Income Taxes (a) A reconciliation of federal income tax on income at the corporate rate to the effective tax rate is as follows: ($ in thousands) 2015 2014 2013 Tax at statutory rate of 35% $ 81,442 68,996 50,331 Tax-advantaged interest (13,164 ) (12,926 ) (12,718 ) Dividends received deduction (1,817 ) (1,121 ) (1,174 ) Other 370 355 (52 ) Federal income tax expense from continuing operations $ 66,831 55,304 36,387 (b) The tax effects of the significant temporary differences that give rise to deferred tax assets and liabilities are as follows: ($ in thousands) 2015 2014 Deferred tax assets: Net loss reserve discounting $ 74,436 84,502 Net unearned premiums 72,057 66,470 Employee benefits 30,432 33,721 Long-term incentive compensation plans 15,551 13,625 Temporary investment write-downs 5,419 3,939 Net operating loss 1,454 2,136 Alternative minimum tax credits — 7,400 Other 8,132 9,237 Total deferred tax assets 207,481 221,030 Deferred tax liabilities: Deferred policy acquisition costs 72,481 63,242 Unrealized gains on investment securities 24,228 43,289 Other investment-related items, net 5,566 5,088 Accelerated depreciation and amortization 12,510 10,962 Total deferred tax liabilities 114,785 122,581 Net deferred federal income tax asset $ 92,696 98,449 After considering all evidence, both positive and negative, with respect to our federal tax loss carryback availability, expected levels of pre-tax financial statement income, and federal taxable income, we believe it is more likely than not that the existing deductible temporary differences will reverse during periods in which we generate net federal taxable income or have adequate federal carryback availability. As a result, we have no valuation allowance recognized for federal deferred tax assets at December 31, 2015 or 2014 . As of December 31, 2015 , we had federal tax NOL carryforwards of $4.2 million . These NOLs, which are subject to an annual limitation of $1.9 million , will expire between 2029 and 2031 as follows: ($ in thousands) Gross NOL Tax Effected NOL 2029 $ 75 26 2030 3,999 1,400 2031 79 28 Total NOL carryforwards $ 4,153 1,454 Stockholders' equity reflects tax benefits related to compensation expense deductions for share-based compensation awards of $22.0 million at December 31, 2015 , $20.2 million at December 31, 2014 , and $19.2 million at December 31, 2013 . We have analyzed our tax positions in all open tax years, which as of December 31, 2015 were 2012 through 2014 . The 2013 tax year is currently under audit. We do not have unrecognized tax expense or benefit as of December 31, 2015 . We believe our tax positions will more likely than not be sustained upon examination, including related appeals or litigation. In the event we had a tax position that did not meet the more likely than not criteria, any tax, interest, and penalties incurred related to such a position would be reflected in "Total federal income tax expense" on our Consolidated Statements of Income. |
Retirement Plans
Retirement Plans | 12 Months Ended |
Dec. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Retirement Plans | Retirement Plans (a) Selective Insurance Retirement Savings Plan (“Retirement Savings Plan”) SICA offers a voluntary defined contribution 401(k) plan, which is available to most of our employees and is a tax-qualified retirement plan subject to the Employee Retirement Income Security Act of 1974 ("ERISA"). Expense recorded for this plan was $14.1 million in 2015 , $13.4 million in 2014 , and $12.2 million in 2013 . (b) Deferred Compensation Plan SICA offers a nonqualified deferred compensation plan ("Deferred Compensation Plan") to a group of management or highly compensated employees as a method of recognizing and retaining such employees. The Deferred Compensation Plan provides these employees the opportunity to elect to defer receipt of specified portions of compensation and to have such deferred amounts deemed to be invested in specified investment options. In addition to the employee deferrals, SICA may choose to make matching contributions to some or all of the participants in this plan to the extent the participant did not receive the maximum matching or non-elective contributions permissible under the Retirement Savings Plan due to limitations under the Internal Revenue Code or the Retirement Savings Plan. Expense recorded for these contributions was $0.2 million in 2015 , 2014 , and 2013 . (c) Retirement Income Plan and Retirement Life Plan SICA's primary pension plan is The Retirement Income Plan for Selective Insurance Company of America (the "Pension Plan"). This qualified, noncontributory defined benefit plan is closed to new entrants and existing participants will cease accruing benefits after March 31, 2016 . In addition to the Pension Plan, SICA also sponsors the Supplemental Excess Retirement Plan (the "Excess Plan") and a life insurance benefit plan (the "Retirement Life Plan"). Both of these plans are closed to new entrants and participants in the Excess Plan will cease accruing benefits after March 31, 2016 . The Retirement Life Plan does not accrue benefits and this plan applies only to retirees who terminated employment with SICA on or before March 31, 2009. These are both unfunded plans with benefit obligations as of December 31, 2015 and December 31, 2014 of $8.5 million and $8.8 million , respectively, for the Excess Plan and $6.0 million and $6.4 million , respectively, for the Retiree Life Plan. Expense recorded for the Excess Plan was $0.8 million in 2015 , $0.6 million in 2014 , and $0.5 million in 2013 . Expense recorded for the Retiree Life Plan was $0.3 million in 2015 , $0.4 million in 2014 , and $0.4 million in 2013 . The following tables provide details on the Pension Plan for 2015 and 2014 : December 31, Pension Plan ($ in thousands) 2015 2014 Change in Benefit Obligation: Benefit obligation, beginning of year $ 322,271 249,422 Service cost 7,215 5,763 Interest cost 13,668 12,776 Actuarial losses (gains) (24,994 ) 61,534 Benefits paid (7,852 ) (7,224 ) Benefit obligation, end of year $ 310,308 322,271 Change in Fair Value of Assets: Fair value of assets, beginning of year $ 253,452 225,817 Actual return on plan assets, net of expenses (7,600 ) 24,649 Contributions by the employer to funded plans 11,700 10,210 Benefits paid (7,852 ) (7,224 ) Fair value of assets, end of year $ 249,700 253,452 Funded status $ (60,608 ) (68,819 ) Amounts Recognized in the Consolidated Balance Sheet: Liabilities $ (60,608 ) (68,819 ) Net pension liability, end of year $ (60,608 ) (68,819 ) Amounts Recognized in AOCI: Net actuarial loss $ 80,828 89,085 Total $ 80,828 89,085 Other Information as of December 31: Accumulated benefit obligation $ 310,307 318,018 Weighted-Average Liability Assumptions as of December 31: Discount rate 4.69 % 4.29 Rate of compensation increase 4.00 4.00 Pension Plan ($ in thousands) 2015 2014 2013 Components of Net Periodic Benefit Cost and Other Amounts Recognized in Other Comprehensive Income: Net Periodic Benefit Cost: Service cost $ 7,215 5,763 7,346 Interest cost 13,668 12,776 12,139 Expected return on plan assets (15,969 ) (15,671 ) (15,755 ) Amortization of unrecognized prior service cost — — 21 Amortization of unrecognized actuarial loss 6,831 1,776 4,145 Curtailment expense — — 189 Total net periodic cost $ 11,745 4,644 8,085 Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income: Net actuarial (gain) loss $ (1,425 ) 52,556 (58,001 ) Reversal of amortization of net actuarial loss (6,831 ) (1,776 ) (4,145 ) Reversal of amortization of prior service cost — — (21 ) Curtailment expense — — (189 ) Total recognized in other comprehensive income $ (8,256 ) 50,780 (62,356 ) Total recognized in net periodic benefit cost and other comprehensive income $ 3,489 55,424 (54,271 ) The estimated net actuarial loss for the Pension Plan that will be amortized from AOCI into net periodic benefit cost during the 2016 fiscal year is $5.9 million . Pension Plan 2015 2014 2013 Weighted-Average Expense Assumptions for the years ended December 31: Discount rate 4.29 % 5.16 4.66 Expected return on plan assets 6.27 % 6.92 7.40 Rate of compensation increase 4.00 % 4.00 4.00 Our latest measurement date was December 31, 2015 and we increased our expected return on plan assets to 6.37% , reflecting the current interest rate environment. When determining the most appropriate discount rate to be used in the valuation, we consider, among other factors, our expected payout patterns of the plans' obligations as well as our investment strategy and we ultimately select the rate that we believe best represents our estimate of the inherent interest rate at which our pension and post-retirement life benefits can be effectively settled. Effective January 1, 2016, the approach used to calculate the service and interest components of net periodic benefit cost for benefit plans was changed to provide a more precise measurement of service and interest costs. Historically, we calculated these service and interest components utilizing a single weighted-average discount rate derived from the yield curve used to measure the benefit obligation at the beginning of the period. Going forward, we have elected to utilize an approach that discounts the individual expected cash flows using the applicable spot rates derived from the yield curve over the projected cash flow period. We will account for this change prospectively as a change in accounting estimate. The weighted average discount rates used to determine 2016 service and interest costs are 4.52% and 4.02% , respectively. Plan Assets Assets of the Pension Plan are invested to ensure that principal is preserved and enhanced over time. Our return objective is to exceed the returns of the plan's policy benchmark, which is the return the plan would have earned if the assets were invested according to the target asset class weightings and earned index returns shown below. In 2016, we will continue to phase in adjustments to the asset allocation to steadily close the gap between the duration of the assets and the duration of the liabilities, provided certain improved funding targets are achieved. The Pension Plan’s equity investments may not contain investments in any one security greater than 8% of the portfolio value without notification to our management investment committee, nor have more than 5% of the outstanding shares of any one corporation or other entity. The use of derivative instruments is permitted under certain circumstances, but shall not be used for unrelated speculative hedging or to apply leverage to portfolio positions. Within the alternative investments portfolio, some leverage is permitted as defined and limited by the partnership agreements. The plan’s target ranges, as well as the actual weighted average asset allocation by asset class, at December 31 were as follows: 2015 2014 Target Ranges Actual Percentage Actual Percentage Long duration fixed income 55%-100% 60 % 59 % Global equity 0%-45% 36 % 25 % Global Asset Allocation 1 — % — % 11 % Private equity 1,2 — % 3 % 4 % Cash and short-term investments 1 — % 1 % 1 % Total — % 100 % 100 % 1 These asset classes do not have target ranges, as these exposures will be phased out over time as we opportunistically migrate to long duration fixed income security strategies. 2 Includes limited partnerships. The Pension Plan had no investments in the Parent’s common stock as of December 31, 2015 or 2014 . The fair value of the Pension Plan's investments is generated using various valuation techniques. We follow the methodology discussed in Note 2. “Summary of Significant Accounting Policies,” regarding pricing and valuation techniques, as well as the fair value hierarchy, for equity and fixed income securities and short-term investments held in the Pension Plan. The techniques used to determine the fair value of the remaining invested assets are as follows: • Valuations for the majority of the investment funds utilize the market approach wherein the quoted prices in the active market for identical assets are used. These investment funds are traded in active markets at their net asset value per share. There are no restrictions on the redemption of these investments and we do not have any contractual obligations to further invest in any of the individual mutual funds. These investments are classified as Level 1 in the fair value hierarchy. Valuations of non-publicly traded investment funds are based upon the observable and verifiable market values of the underlying publicly traded securities and therefore are classified as Level 2 within the fair value hierarchy. • The deposit administration contract is carried at cost, which approximates fair value. Given the liquid nature of the underlying investments in overnight cash deposits and other short term duration products, we have determined that a correlation exists between the deposit administration contract and other short-term investments such as money market funds. As such, this investment is classified as Level 2 in the fair value hierarchy. • For valuations of the investments in limited partnerships, fair value is based on the Pension Plan’s ownership interest in the reported net asset values as a practical expedient. The majority of the net asset values are reported to us on a one quarter lag. We assess whether these reported net asset values are indicative of market activity that has occurred since the date of their valuation by the investees: (i) by reviewing the overall market fluctuation and whether a material impact to our investments' valuation could have occurred; and (ii) through routine conversations with the underlying funds' general partners/managers discussing, among other things, conditions or events having significant impacts to their portfolio assets that have occurred subsequent to the reported date, if any. Our limited partnership investments cannot be redeemed with the investees as our partnership agreements require our commitment for the duration of the underlying funds’ lives. There is no active plan to sell any of our remaining interests in the limited partnership investments; however, we may continue to entertain potential opportunities to limit our exposure to these investments through the use of the secondary market. These limited partnerships have been fair valued using Level 3 inputs. The following tables provide quantitative disclosures of the Pension Plan’s invested assets that are measured at fair value on a recurring basis: December 31, 2015 Fair Value Measurements at 12/31/15 Using ($ in thousands) Assets Measured at Fair Value At 12/31/15 Quoted Prices in Active Markets for Identical Assets/ Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Description Long duration fixed income: Global asset allocation fund $ 33,565 33,565 — — Extended duration fixed income 117,297 117,297 — — Total long duration fixed income 150,862 150,862 — — Global equity: Non-U.S. equity 42,603 — 42,603 — U.S. equity 46,840 — 46,840 — Total global equity 89,443 — 89,443 — Private equity (limited partnerships): Private equity 4,852 — — 4,852 Real estate 1,606 — — 1,606 Total private equity 6,458 — — 6,458 Cash and short-term investments: Short-term investments 1,600 1,600 — — Deposit administration contracts 1,418 — 1,418 — Total cash and short-term investments 3,018 1,600 1,418 — Total invested assets $ 249,781 152,462 90,861 6,458 December 31, 2014 Fair Value Measurements at 12/31/14 Using ($ in thousands) Assets Measured at Fair Value At 12/31/14 Quoted Prices in Active Markets for Identical Assets/ Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Description Long duration fixed income: Global asset allocation fund $ 27,782 27,782 — — Extended duration fixed income 120,532 120,532 — — Total long duration fixed income 148,314 148,314 — — Global equity: Non-U.S. equity 16,852 5,438 11,414 — U.S. equity 47,719 47,719 — — Total global equity 64,571 53,157 11,414 — Global asset allocation 27,842 27,842 — — Private equity (limited partnerships): Equity long/short hedge 41 — — 41 Private equity 8,136 — — 8,136 Real estate 2,215 — — 2,215 Total private equity 10,392 — — 10,392 Cash and short-term investments: Short-term investments 1,222 1,222 — — Deposit administration contracts 1,180 — 1,180 — Total cash and short-term investments 2,402 1,222 1,180 — Total invested assets $ 253,521 230,535 12,594 10,392 The following tables provide a summary of the changes in fair value of securities using significant unobservable inputs (Level 3): Investments in Limited Partnerships ($ in thousands) 2015 2014 Fair value, beginning of year $ 10,392 12,159 Total gains (realized and unrealized) included in changes in net assets (410 ) 1,586 Purchases 51 334 Sales — — Issuances — — Settlements (3,575 ) (3,687 ) Transfers into Level 3 — — Transfers out of Level 3 — — Fair value, end of year $ 6,458 10,392 Contributions We presently anticipate contributing $11.7 million to the Pension Plan in 2016 , none of which represents minimum required contribution amounts. Benefit Payments ($ in thousands) Pension Plan Benefits Expected to be Paid in Future Fiscal Years: 2016 $ 9,917 2017 10,958 2018 12,005 2019 13,045 2020 14,092 2021-2025 84,400 |
Share-Based Payments
Share-Based Payments | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Shared-Based Payments | Expense Recognition The following table provides share-based compensation expense in 2015 , 2014 , and 2013 : ($ in millions) 2015 2014 2013 Share-based compensation expense, pre-tax $ 23.8 18.6 19.9 Income tax benefit (8.0 ) (6.2 ) (6.8 ) Share-based compensation expense, after-tax $ 15.8 12.4 13.1 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions William M. Rue, a Director of the Parent, is Chairman of, and owns more than 10% of the equity of, Chas. E. Rue & Son, Inc., t/a Rue Insurance, a general independent retail insurance agency ("Rue Insurance"). Rue Insurance is an appointed distribution partner of the Insurance Subsidiaries on terms and conditions similar to those of our other distribution partners. Mr. Rue’s son is President, and an employee, of Rue Insurance and Mr. Rue’s daughter is an employee of Rue Insurance. Our relationship with Rue Insurance has existed since 1928. Rue Insurance placed insurance policies with the Insurance Subsidiaries. DPW associated with these policies were $9.6 million in 2015 , $9.0 million in 2014 , and $8.2 million in 2013 . In return, the Insurance Subsidiaries paid standard market commissions to Rue Insurance of $1.7 million in 2015 , $1.6 million in 2014 , and $1.3 million in 2013 including supplemental commissions. In 2005, we established a private foundation, now named The Selective Insurance Group Foundation (the "Foundation"), under Section 501(c)(3) of the Internal Revenue Code. The Board of Directors of the Foundation is comprised of some of the Parent's officers. We made contributions to the Foundation in the amount of $1.0 million in 2015 , $0.8 million in 2014 , and $0.4 million in 2013 . |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies (a) We purchase annuities from life insurance companies to fulfill obligations under claim settlements that provide for periodic future payments to claimants. As of December 31, 2015 , we had purchased such annuities with a present value of $15.8 million for settlement of claims on a structured basis for which we are contingently liable. To our knowledge, there are no material defaults from any of the issuers of such annuities. (b) We have various operating leases for office space and equipment. Such lease agreements, which expire at various times, are generally renewed or replaced by similar leases. Rental expense under these leases amounted to $17.4 million in 2015 , $15.6 million in 2014 , and $13.2 million in 2013 . We also lease computer hardware and software under capital lease agreements expiring at various dates through 2018 . See Note 2(p) for information on our accounting policy regarding leases. In addition, certain leases for rented premises and equipment are non-cancelable, and liability for payment will continue even though the space or equipment may no longer be in use. At December 31, 2015 , the total future minimum rental commitments under non-cancelable leases were as follows: ($ in millions) Capital Leases Operating Leases Total 2016 $ 3.9 6.7 10.6 2017 2.8 5.5 8.3 2018 1.2 4.9 6.1 2019 — 4.1 4.1 2020 — 3.1 3.1 After 2020 — 5.8 5.8 Total minimum payment required $ 7.9 30.1 38.0 (c) At December 31, 2015 , we have contractual obligations that expire at various dates through 2028 to invest up to an additional $74.4 million in alternative and other investments. There is no certainty that any such additional investment will be required. For additional information regarding these investments, see item (f) of Note 5. "Investments" in this Form 10-K. |
Litigation
Litigation | 12 Months Ended |
Dec. 31, 2015 | |
Loss Contingency, Information about Litigation Matters [Abstract] | |
Litigation | Litigation In the ordinary course of conducting business, we are named as defendants in various legal proceedings. Most of these proceedings are claims litigation involving our Insurance Subsidiaries as either: (i) liability insurers defending or providing indemnity for third-party claims brought against our customers; or (ii) insurers defending first-party coverage claims brought against them. We account for such activity through the establishment of unpaid loss and loss expense reserves. We expect that the ultimate liability, if any, with respect to such ordinary course claims litigation, after consideration of provisions made for potential losses and costs of defense, will not be material to our consolidated financial condition, results of operations, or cash flows. Our Insurance Subsidiaries are also from time to time involved in other legal actions, some of which assert claims for substantial amounts. These actions include, among others, putative class actions seeking certification of a state or national class. Such putative class actions have alleged, for example, improper reimbursement of medical providers paid under workers compensation and personal and commercial automobile insurance policies. Our Insurance Subsidiaries also are involved from time to time in individual actions in which extra-contractual damages, punitive damages, or penalties are sought, such as claims alleging bad faith in the handling of insurance claims. We believe that we have valid defenses to these cases. We expect that the ultimate liability, if any, with respect to such lawsuits, after consideration of provisions made for estimated losses, will not be material to our consolidated financial condition. Nonetheless, given the large or indeterminate amounts sought in certain of these actions, and the inherent unpredictability of litigation, an adverse outcome in certain matters could, from time to time, have a material adverse effect on our consolidated results of operations or cash flows in particular quarterly or annual periods. As of December 31, 2015 , we do not believe the Company was involved in any legal action that could have a material adverse effect on our consolidated financial condition, results of operations, or cash flows. |
Statutory Financial Information
Statutory Financial Information, Capital Requirements, and Restrictions on Dividends and Transfers of Funds | 12 Months Ended |
Dec. 31, 2015 | |
Insurance [Abstract] | |
Statutory Financial Information, Capital Requirments, and Retrictions on Dividends and Transfers of Funds | Statutory Financial Information, Capital Requirements, and Restrictions on Dividends and Transfers of Funds (a) Statutory Financial Information The Insurance Subsidiaries prepare their statutory financial statements in accordance with accounting principles prescribed or permitted by the various state insurance departments of domicile. Prescribed statutory accounting principles include state laws, regulations, and general administrative rules, as well as a variety of publications of the National Association of Insurance Commissioners (“NAIC"). Permitted statutory accounting principles encompass all accounting principles that are not prescribed; such principles differ from state to state, may differ from company to company within a state and may change in the future. The Insurance Subsidiaries do not utilize any permitted statutory accounting principles that materially affect the determination of statutory surplus, statutory net income, or risk-based capital (“RBC”). As of December 31, 2015 , the various state insurance departments of domicile have adopted the March 2015 version of the NAIC Accounting Practices and Procedures manual in its entirety, as a component of prescribed or permitted practices. The following table provides statutory data for each of our Insurance Subsidiaries: State of Domicile Unassigned Surplus Statutory Surplus Statutory Net Income ($ in millions) 2015 2014 2015 2014 2015 2014 2013 SICA New Jersey $ 366.6 338.8 520.8 493.0 69.6 83.9 53.1 Selective Way Insurance Company ("SWIC") New Jersey 223.6 201.3 272.6 250.3 42.3 37.0 27.5 Selective Insurance Company of South Carolina ("SICSC") Indiana 96.6 83.9 127.9 115.1 15.9 14.0 8.2 Selective Insurance Company of the Southeast ("SICSE") Indiana 70.7 59.3 96.2 84.9 12.1 10.5 6.0 Selective Insurance Company of New York ("SICNY") New York 65.3 54.9 93.0 82.6 12.7 10.3 6.9 Selective Insurance Company of New England ("SICNE") New Jersey 9.2 5.3 39.4 35.4 5.5 4.4 3.1 Selective Auto Insurance Company of New Jersey ("SAICNJ") New Jersey 26.4 18.4 69.2 61.3 10.8 9.1 2.5 MUSIC New Jersey 7.0 (1.7 ) 75.5 66.8 9.5 7.3 5.2 Selective Casualty Insurance Company ("SCIC") New Jersey 17.8 8.2 92.3 82.7 12.1 9.6 6.6 Selective Fire and Casualty Insurance Company ("SFCIC") New Jersey 7.5 3.8 39.4 35.7 5.3 4.2 3.1 Total $ 890.7 772.2 1,426.3 1,307.8 195.8 190.3 122.2 (b) Capital Requirements The Insurance Subsidiaries are required to maintain certain minimum amounts of statutory surplus to satisfy the requirements of their various state insurance departments of domicile. RBC requirements for property and casualty insurance companies are designed to assess capital adequacy and to raise the level of protection that statutory surplus provides for policyholders. The Insurance Subsidiaries combined total adjusted capital exceeded the authorized control level RBC, as defined by the NAIC based on their 2015 statutory financial statements. In addition to statutory capital requirements, we are impacted by various rating agency requirements related to certain rating levels. These required capital levels may be more than statutory requirements. (c) Restrictions on Dividends and Transfers of Funds Our ability to declare and pay dividends on the Parent's common stock is dependent on liquidity at the Parent coupled with the ability of the Insurance Subsidiaries to declare and pay dividends, if necessary, and/or the availability of other sources of liquidity to the Parent. As of December 31, 2015 , the Parent had an aggregate of $91.6 million in investments and cash available to fund future dividends and interest payments. These amounts are not subject to any regulatory restrictions other than standard state insolvency restrictions, whereas our consolidated retained earnings of $1.4 billion is predominately restricted due to the regulation associated with our Insurance Subsidiaries. In 2016 , the Insurance Subsidiaries have the ability to provide for $178.3 million in annual dividends to the Parent; however, as regulated entities, these dividends are subject to certain restrictions as is further discussed below. The Parent also has available to it other potential sources of liquidity, such as: (i) borrowings from our Indiana Subsidiaries; (ii) debt issuances; (iii) common stock issuances; and (iv) borrowings under our Line of Credit. Borrowings from our Indiana Subsidiaries are governed by approved intercompany lending agreements with the Parent that provide for additional capacity of $54.6 million as of December 31, 2015 , after considering that borrowings under these lending agreements are restricted to 10% of the admitted assets of these respective subsidiaries. For additional information regarding the Parent's Line of Credit, refer to "Financial Condition, Liquidity, Short-Term Borrowings, and Capital Resources" in Item 7. "Management’s Discussion and Analysis of Financial Condition and Results of Operations.” of this Form 10-K. For additional restrictions on the Parent's debt, see Note 10. "Indebtedness" in this Form 10-K. Insurance Subsidiaries Dividend Restrictions As noted above, the restriction on our net assets and retained earnings is predominantly driven by our Insurance Subsidiaries' ability to pay dividends to the Parent under applicable law and regulations. Under the insurance laws of the domiciliary states of the Insurance Subsidiaries, New Jersey, Indiana, and New York, an insurer can potentially make an ordinary dividend payment if its statutory surplus following such dividend is reasonable in relation to its outstanding liabilities, is adequate to its financial needs, and the dividend does not exceed the insurer's unassigned surplus. In general, New Jersey defines an ordinary dividend as a dividend whose fair market value, together with other dividends made within the preceding 12 months, is less than the greater of 10% of the insurer's statutory surplus as of the preceding December 31, or the insurer's net income (excluding capital gains) for the 12-month period ending on the preceding December 31 . Indiana's ordinary dividend calculation is consistent with New Jersey's, except that it does not exclude capital gains from net income. In general, New York defines an ordinary dividend as a dividend whose fair market value, together with other dividends made within the preceding 12 months, is less than the lesser of 10% of the insurer's statutory surplus, or 100% of adjusted net investment income. New Jersey and Indiana require notice of the declaration of any ordinary dividend distribution. During the notice period, the relevant state regulatory authority may disallow all or part of the proposed dividend if it determines that the dividend is not appropriate given the above considerations. New York does not require notice of ordinary dividends. Dividend payments exceeding ordinary dividends are referred to as extraordinary dividends and require review and approval by the applicable domiciliary insurance regulatory authority prior to payment. The following table provides quantitative data regarding all Insurance Subsidiaries' dividends paid to the Parent in 2015 for debt service, shareholder dividends, and general operating purposes: Dividends Twelve Months ended December 31, 2015 ($ in millions) State of Domicile Ordinary Dividends Paid SICA New Jersey $ 26.0 SWIC New Jersey 16.0 SICSC Indiana 3.3 SICSE Indiana 2.0 SICNY New York 2.5 SICNE New Jersey 1.5 SAICNJ New Jersey 2.5 SCIC New Jersey 2.5 SFCIC New Jersey 1.5 Total $ 57.8 Based on the 2015 statutory financial statements, the maximum ordinary dividends that can be paid to the Parent by the Insurance Subsidiaries in 2016 are as follows: 2016 ($ in millions) State of Domicile Maximum Ordinary Dividends SICA New Jersey $ 61.2 SWIC New Jersey 37.0 SICSC Indiana 15.9 SICSE Indiana 12.1 SICNY New York 9.3 SICNE New Jersey 5.5 SAICNJ New Jersey 10.6 MUSIC New Jersey 9.4 SCIC New Jersey 12.1 SFCIC New Jersey 5.2 Total $ 178.3 |
Quarterly Financial Information
Quarterly Financial Information | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information | Quarterly Financial Information (unaudited, $ in thousands, First Quarter Second Quarter Third Quarter Fourth Quarter except per share data) 2015 2014 2015 2014 2015 2014 2015 2014 Net premiums earned $ 476,123 456,495 490,309 463,625 507,390 462,639 516,087 469,850 Net investment income earned 26,917 35,534 32,230 36,774 32,061 34,292 30,108 32,108 Net realized gains (losses) 18,883 7,218 (3,420 ) 4,539 308 15,231 (2,600 ) (389 ) Underwriting income (loss) 26,021 (5,015 ) 29,124 10,084 44,831 34,437 49,053 38,637 Net income 39,708 17,974 33,768 29,341 46,996 53,162 45,389 41,350 Other comprehensive income (loss) 3,827 16,678 (35,944 ) 26,483 6,290 (18,887 ) (3,386 ) (29,337 ) Comprehensive income (loss) 43,535 34,652 (2,176 ) 55,824 53,286 34,275 42,003 12,013 Net income per share: Basic 0.70 0.32 0.59 0.52 0.82 0.94 0.79 0.73 Diluted 0.69 0.31 0.58 0.51 0.81 0.93 0.78 0.72 Dividends to stockholders 1 0.14 0.13 0.14 0.13 0.14 0.13 0.15 0.14 Price range of common stock: 2 High 30.10 26.99 29.60 25.42 32.50 25.46 37.91 27.65 Low 25.49 21.38 26.28 22.14 28.10 21.97 30.36 22.01 The addition of all quarters may not agree to annual amounts on the Financial Statements due to rounding. 1 See Note 19. “Statutory Financial Information, Capital Requirements, and Restrictions on Dividends and Transfers of Funds” for a discussion of dividend restrictions. 2 These ranges of high and low prices of the Parent’s common stock, as reported by the NASDAQ Global Select Market, represent actual transactions. Price quotations do not include retail markups, markdowns, and commissions. The range of high and low prices for common stock for the period beginning January 4, 2016 and ending February 12, 2016 was $29.27 to $34.00 . |
Schedule I - Summay of Investme
Schedule I - Summay of Investments - Other Than Investments in Related Parties | 12 Months Ended |
Dec. 31, 2015 | |
Summary of Investments, Other than Investments in Related Parties [Abstract] | |
Schedule I - Summary of Investments- Other than Investments in Related Parties | Types of investment ($ in thousands) Amortized Cost or Cost Fair Value Carrying Amount Fixed income securities: Held-to-maturity: Obligations of states and political subdivisions $ 175,269 181,880 176,117 Public utilities 9,637 10,662 9,647 All other corporate securities 10,591 11,353 10,396 Asset-backed securities 1,030 1,028 910 Commercial mortgage-backed securities 4,527 4,621 4,284 Total fixed income securities, held-to-maturity 201,054 209,544 201,354 Available-for-sale: U.S. government and government agencies 99,485 104,115 104,115 Foreign government 14,885 15,181 15,181 Obligations of states and political subdivisions 1,314,779 1,359,142 1,359,142 Public utilities 156,786 157,270 157,270 All other corporate securities 1,735,510 1,742,912 1,742,912 Asset-backed securities 244,541 244,154 244,154 Commercial mortgage-backed securities 245,252 243,592 243,592 Residential mortgage-backed securities 541,276 541,837 541,837 Total fixed income securities, available-for-sale 4,352,514 4,408,203 4,408,203 Equity securities: Common stock: Public utilities 9,106 10,080 10,080 Banks, trust and insurance companies 23,622 23,696 23,696 Industrial, miscellaneous and all other 149,263 161,013 161,013 Total common stock, available-for-sale 181,991 194,789 194,789 Preferred stock: Banks, trust and insurance companies 11,825 12,262 12,262 Total preferred stock, available-for-sale 11,825 12,262 12,262 Total equity securities, available-for-sale 193,816 207,051 207,051 Short-term investments 194,819 194,819 194,819 Other investments 77,842 77,842 Total investments $ 5,020,045 5,089,269 See accompanying Report of Independent Registered Public Accounting Firm in Item 8. "Financial Statements and Supplementary Data." of this Form 10-K. |
Schedule II - Parent Corporatio
Schedule II - Parent Corporation Finanical Statements | 12 Months Ended |
Dec. 31, 2015 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Schedule II- Parent Corporation Financial Statements | SCHEDULE II SELECTIVE INSURANCE GROUP, INC. (Parent Corporation) Balance Sheets December 31, ($ in thousands, except share amounts) 2015 2014 Assets: Fixed income securities, available-for-sale – at fair value (amortized cost: $61,794 – 2015; $49,890 – 2014) $ 61,567 50,028 Short-term investments 29,116 16,605 Cash 898 16,367 Investment in subsidiaries 1,716,681 1,604,162 Current federal income tax 18,297 16,848 Deferred federal income tax 17,513 15,781 Other assets 670 660 Total assets $ 1,844,742 1,720,451 Liabilities: Notes payable $ 328,192 327,689 Intercompany notes payable 86,163 88,961 Accrued long-term stock compensation 26,465 21,890 Other liabilities 5,881 6,325 Total liabilities $ 446,701 444,865 Stockholders’ Equity: Preferred stock at $0 par value per share: Authorized shares 5,000,000; no shares issued or outstanding $ — — Common stock of $2 par value per share: Authorized shares: 360,000,000 Issued: 100,861,372 – 2015; 99,947,933 – 2014 201,723 199,896 Additional paid-in capital 326,656 305,385 Retained earnings 1,446,192 1,313,440 Accumulated other comprehensive (loss) income (9,425 ) 19,788 Treasury stock – at cost (shares: 43,500,642 – 2015; 43,353,181 – 2014) (567,105 ) (562,923 ) Total stockholders’ equity 1,398,041 1,275,586 Total liabilities and stockholders’ equity $ 1,844,742 1,720,451 See accompanying Report of Independent Registered Public Accounting Firm. Information should be read in conjunction with the Notes to Consolidated Financial Statements of Selective Insurance Group, Inc. and its subsidiaries. Both items are in Item 8. “Financial Statements and Supplementary Data.” of this Form 10-K. SCHEDULE II (continued) SELECTIVE INSURANCE GROUP, INC. (Parent Corporation) Statements of Income Year ended December 31, ($ in thousands) 2015 2014 2013 Revenues: Dividends from subsidiaries $ 57,752 57,511 32,129 Net investment income earned 852 620 585 Other income — 342 55 Total revenues 58,604 58,473 32,769 Expenses: Interest expense 24,057 24,817 28,132 Other expenses 28,393 23,598 24,065 Total expenses 52,450 48,415 52,197 Income (loss) from continuing operations, before federal income tax 6,154 10,058 (19,428 ) Federal income tax benefit: Current (16,609 ) (15,920 ) (22,779 ) Deferred (1,603 ) (646 ) 4,835 Total federal income tax benefit (18,212 ) (16,566 ) (17,944 ) Net income (loss) from continuing operations before equity in undistributed income of subsidiaries 24,366 26,624 (1,484 ) Equity in undistributed income of continuing subsidiaries, net of tax 141,495 115,203 108,899 Net income from continuing operations 165,861 141,827 107,415 Loss on disposal of discontinued operations, net of tax of $(538) – 2013 — — (997 ) Net income $ 165,861 141,827 106,418 See accompanying Report of Independent Registered Public Accounting Firm. Information should be read in conjunction with the Notes to Consolidated Financial Statements of Selective Insurance Group, Inc. and its subsidiaries. Both items are in Item 8. “Financial Statements and Supplementary Data.” of this Form 10-K. SCHEDULE II (continued) SELECTIVE INSURANCE GROUP, INC. (Parent Corporation) Statements of Cash Flows Year ended December 31, ($ in thousands) 2015 2014 2013 Operating Activities: Net income $ 165,861 141,827 106,418 Adjustments to reconcile net income to net cash provided by operating activities: Equity in undistributed income of subsidiaries, net of tax (141,495 ) (115,203 ) (108,899 ) Stock-based compensation expense 8,973 8,702 8,630 Loss on disposal of discontinued operations — — 997 Net realized gains — (2 ) — Amortization – other 740 1,421 4,353 Changes in assets and liabilities: Increase in accrued long-term stock compensation 4,575 1,062 6,791 (Increase) decrease in net federal income taxes (3,052 ) 10,977 (14,968 ) (Decrease) increase in other assets and other liabilities (214 ) 1,045 1,204 Net adjustments (130,473 ) (91,998 ) (101,892 ) Net cash provided by operating activities 35,388 49,829 4,526 Purchase of fixed income securities, available-for-sale (33,717 ) (18,511 ) (21,708 ) Redemption and maturities of fixed income securities, available-for-sale 21,578 23,210 6,432 Sale of fixed income securities, available-for-sale — 300 — Purchase of short-term investments (106,933 ) (102,717 ) (241,748 ) Sale of short-term investments 94,422 101,510 253,136 Capital contribution to subsidiaries — — (57,125 ) Sale of subsidiary — — 1,225 Net cash (used in) provided by investing activities (24,650 ) 3,792 (59,788 ) Financing Activities: Dividends to stockholders (31,052 ) (28,428 ) (27,416 ) Acquisition of treasury stock (4,182 ) (3,563 ) (3,716 ) Proceeds from notes payable, net of debt issuance costs — — 178,435 Net proceeds from stock purchase and compensation plans 10,089 7,283 7,119 Excess tax benefits from share-based payment arrangements 1,736 1,020 1,545 Repayment of notes payable — — (100,000 ) Principal payment on borrowings from subsidiaries (2,798 ) (13,759 ) (722 ) Net cash (used in) provided by financing activities (26,207 ) (37,447 ) 55,245 Net (decrease) increase in cash (15,469 ) 16,174 (17 ) Cash, beginning of year 16,367 193 210 Cash, end of year $ 898 16,367 193 See accompanying Report of Independent Registered Public Accounting Firm. Information should be read in conjunction with the Notes to Consolidated Financial Statements of Selective Insurance Group, Inc. and its subsidiaries. Both items are in Item 8. “Financial Statements and Supplementary Data.” of this Form 10-K. |
Schedule III - Supplementary In
Schedule III - Supplementary Insurance Information | 12 Months Ended |
Dec. 31, 2015 | |
Supplementary Insurance Information [Abstract] | |
Schedule III- Supplementary Insurance Information | ($ in thousands) Deferred policy acquisition costs Reserve for loss and loss expenses Unearned premiums Net premiums earned Net investment income 1 Losses and loss expenses incurred Amortization of deferred policy acquisition costs 2 Other operating expenses 3 Net premiums written Standard Commercial Lines Segment $ 171,476 2,998,749 803,648 1,529,442 — 819,573 323,753 221,620 1,596,965 Standard Personal Lines Segment 17,258 265,054 276,533 288,134 — 200,237 33,638 52,923 283,926 E&S Lines Segment 24,425 253,925 89,529 172,333 — 128,731 42,044 18,361 189,013 Investments Segment — — — — 134,487 — — — — Total $ 213,159 3,517,728 1,169,710 1,989,909 134,487 1,148,541 399,435 292,904 2,069,904 1 Includes “Net investment income earned” and “Net realized investment gains” on the Consolidated Statements of Income. 2 The total of “Amortization of deferred policy acquisition costs” of $399,435 and “Other operating expenses” of $292,904 reconciles to the Consolidated Statements of Income as follows: Policy acquisition costs $ 689,820 Other income 3 (7,456 ) Other expenses 3 9,975 Total $ 692,339 3 In addition to amounts related to the Standard Commercial Lines, Standard Personal Lines, and E&S Lines, “Other income” and “Other expenses” on the Consolidated Statements of Income includes holding company income and expense amounts of $0 and $28,396 , respectively. See accompanying Report of Independent Registered Public Accounting Firm in Item 8. "Financial Statements and Supplementary Data." of this Form 10-K. Year ended December 31, 2014 ($ in thousands) Deferred policy acquisition costs Reserve for loss and loss expenses Unearned premiums Net premiums earned Net investment income 1 Losses and loss expenses incurred Amortization of deferred policy acquisition costs 2 Other operating expenses 3 Net premiums written Standard Commercial Lines Segment $ 147,285 3,000,796 734,697 1,415,712 — 870,018 295,774 188,699 1,441,047 Standard Personal Lines Segment 17,495 279,761 285,777 296,747 — 197,182 34,851 48,178 292,061 E&S Lines Segment 20,828 197,313 75,345 140,150 — 90,301 33,670 15,793 152,172 Investments Segment — — — — 165,307 — — — — Total $ 185,608 3,477,870 1,095,819 1,852,609 165,307 1,157,501 364,295 252,670 1,885,280 1 Includes “Net investment income earned” and “Net realized investment gains” on the Consolidated Statements of Income. 2 The total of “Amortization of deferred policy acquisition costs” of $364,295 and “Other operating expenses” of $252,670 reconciles to the Consolidated Statements of Income as follows: Policy acquisition costs $ 624,470 Other income 3 (16,598 ) Other expenses 3 9,093 Total $ 616,965 3 In addition to amounts related to the Standard Commercial Lines, Standard Personal Lines, and E&S Lines, “Other income” and “Other expenses” on the Consolidated Statements of Income includes holding company income and expense amounts of $347 and $23,603 , respectively. See accompanying Report of Independent Registered Public Accounting Firm in Item 8. "Financial Statements and Supplementary Data." of this Form 10-K. SCHEDULE III (continued) SELECTIVE INSURANCE GROUP, INC. AND CONSOLIDATED SUBSIDIARIES SUPPLEMENTARY INSURANCE INFORMATION Year ended December 31, 2013 ($ in thousands) Deferred policy acquisition costs Reserve for loss and loss expenses Unearned premiums Net premiums earned Net investment income 1 Losses and loss expenses incurred Amortization of deferred policy acquisition costs 2 Other operating expenses 3 Net premiums written Standard Commercial Lines Segment $ 138,397 2,877,087 708,861 1,316,619 — 831,261 270,443 181,059 1,380,740 Standard Personal Lines Segment 18,149 312,411 286,969 294,332 — 206,450 33,097 46,140 297,757 E&S Lines Segment 16,435 160,272 63,325 125,121 — 84,027 28,288 16,541 131,662 Investments Segment — — — — 155,375 — — — — Total $ 172,981 3,349,770 1,059,155 1,736,072 155,375 1,121,738 331,828 243,740 1,810,159 1 Includes “Net investment income earned” and “Net realized investment gains” on the Consolidated Statements of Income. 2 The total of “Amortization of deferred policy acquisition costs” of $331,828 and “Other operating expenses” of $243,740 reconciles to the Consolidated Statements of Income as follows: Policy acquisition costs $ 579,977 Other income 3 (12,201 ) Other expenses 3 7,792 Total $ 575,568 3 In addition to amounts related to the Standard Commercial Lines, Standard Personal Lines, and E&S Lines, “Other income” and “Other expenses” on the Consolidated Statements of Income includes holding company income and expense amounts of $93 and $24,071 , respectively. See accompanying Report of Independent Registered Public Accounting Firm in Item 8. "Financial Statements and Supplementary Data." of this Form 10-K. |
Schedule IV - Reinsurance
Schedule IV - Reinsurance | 12 Months Ended |
Dec. 31, 2015 | |
Supplemental Schedule of Reinsurance Premiums for Insurance Companies [Abstract] | |
Schedule IV - Reinsurance | ($ thousands) Direct Amount Assumed From Other Companies Ceded to Other Companies Net Amount % of Amount Assumed To Net 2015 Premiums earned: Accident and health insurance $ 37 — 37 — — Property and liability insurance 2,330,230 23,209 363,530 1,989,909 1 % Total premiums earned 2,330,267 23,209 363,567 1,989,909 1 % 2014 Premiums earned: Accident and health insurance $ 44 — 44 — — Property and liability insurance 2,183,214 34,653 365,258 1,852,609 2 % Total premiums earned 2,183,258 34,653 365,302 1,852,609 2 % 2013 Premiums earned: Accident and health insurance $ 55 — 55 — — Property and liability insurance 2,048,475 44,464 356,867 1,736,072 3 % Total premiums earned 2,048,530 44,464 356,922 1,736,072 3 % See accompanying Report of Independent Registered Public Accounting Firm in Item 8. "Financial Statements and Supplementary Data." of this Form 10-K. |
Schedule V - Allowance for Unco
Schedule V - Allowance for Uncollectible Premiums and Other Receivables | 12 Months Ended |
Dec. 31, 2015 | |
Valuation and Qualifying Accounts [Abstract] | |
Schedule V - Allowance for Uncollectible Premiums and Other Receivables | ($ in thousands) 2015 2014 2013 Balance, January 1 $ 11,037 9,542 8,706 Additions 3,604 4,617 3,733 Deductions (4,519 ) (3,122 ) (2,897 ) Balance, December 31 $ 10,122 11,037 9,542 See accompanying Report of Independent Registered Public Accounting Firm in Item 8. "Financial Statements and Supplementary Data." of this Form 10-K. |
Summary of Significant Accoun35
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The accompanying consolidated financial statements (“Financial Statements”) include the accounts of the Parent and its subsidiaries, and have been prepared in conformity with: (i) U.S. generally accepted accounting principles ("GAAP"); and (ii) the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). All significant intercompany accounts and transactions are eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of our Financial Statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported financial statement balances, as well as the disclosure of contingent assets and liabilities. Actual results could differ from those estimates. |
Reclassifications | Reclassifications Certain amounts in our prior years' Financial Statements and related notes have been reclassified to conform to the 2015 presentation. Such reclassifications had no effect on our net income, stockholders' equity, or cash flows. |
Investments | Investments Fixed income securities may include bonds, redeemable preferred stocks, mortgage-backed securities (“MBS”) and asset-backed securities (“ABS”). MBS and ABS are jointly referred to as structured securities. Fixed income securities classified as available-for-sale (“AFS”) are reported at fair value. Those fixed income securities that we have the ability and positive intent to hold to maturity are classified as held-to-maturity (“HTM”) and are carried at either: (i) amortized cost; or (ii) market value at the date of transfer into the HTM category, adjusted for subsequent amortization. The amortized cost of fixed income securities is adjusted for the amortization of premiums and the accretion of discounts over the expected life of the security using the effective yield method. Premiums and discounts arising from the purchase of structured securities are amortized over the expected life of the security based on future principal payments, and considering prepayments. These prepayments are estimated based on historical and projected cash flows. Prepayment assumptions are reviewed quarterly and adjusted to reflect actual prepayments and changes in expectations. Future amortization of any premium and/or discount is adjusted to reflect the revised assumptions. Interest income, as well as amortization and accretion, is included in "Net investment income earned" on our Consolidated Statements of Income. The amortized cost of fixed income securities is written down to fair value when a decline in value is considered to be other than temporary. See the discussion below on realized investment gains and losses for a description of the accounting for impairments. After-tax unrealized gains and losses on: (i) fixed income securities classified as AFS; and (ii) fixed income securities that were transferred into an HTM designation from an AFS designation, are included in accumulated other comprehensive income (loss) ("AOCI"). Equity securities, which are classified as AFS, may include common stocks and non-redeemable preferred stocks, and are carried at fair value. Dividend income on these securities is included in "Net investment income earned" on our Consolidated Statements of Income. The associated unrealized gains and losses, net of tax, are included in AOCI. The cost of equity securities is written down to fair value when a decline in value is considered to be other than temporary. See the discussion below on realized investment gains and losses for a description of the accounting for impairments. Short-term investments may include certain money market instruments, savings accounts, commercial paper, and other debt issues purchased with a maturity of less than one year. These investments are carried at cost, which approximates fair value. The associated income is included in "Net investment income earned" on our Consolidated Statement of Income. Other investments may include alternative investments and other securities. Alternative investments are accounted for using the equity method. Our share of distributed and undistributed net income from alternative investments is included in "Net investment income earned" on our Consolidated Statement of Income. Other securities are primarily comprised of tax credit investments. Low income housing tax credits are accounted for under the proportional amortization method and all other tax credits are accounted for using the equity method. Under the proportional amortization method, our share of the investment’s performance is recorded in our Consolidated Statement of Income as a component of “Federal income tax expense.” Under the equity method, our share of distributed and undistributed net income is included in "Net investment income earned" on our Consolidated Statement of Income. Realized gains and losses on the sale of investments are determined on the basis of the cost of the specific investments sold and are credited or charged to income. Included in realized gains and losses are the other-than-temporary impairment ("OTTI") charges recognized in earnings, which are discussed below. When the fair value of any investment is lower than its cost/amortized cost, an assessment is made to determine if the decline is other than temporary. We regularly review our entire investment portfolio for declines in fair value. If we believe that a decline in the value of an AFS security is temporary, we record the decline as an unrealized loss in AOCI. Temporary declines in the value of an HTM security are not recognized in the Financial Statements. Our assessment of a decline in fair value includes judgment as to the financial position and future prospects of the entity that issued the investment security, as well as a review of the security’s underlying collateral for fixed income investments. Broad changes in the overall market or interest rate environment generally will not lead to a write-down. Fixed Income Securities and Short-Term Investments Our evaluation for OTTI of a fixed income security or a short-term investment may include, but is not limited to, the evaluation of the following factors: • Whether the decline appears to be issuer or industry specific; • The degree to which the issuer is current or in arrears in making principal and interest payments on the fixed income security; • The issuer’s current financial condition and ability to make future scheduled principal and interest payments on a timely basis; • Evaluation of projected cash flows; • Buy/hold/sell recommendations published by outside investment advisors and analysts; and • Relevant rating history, analysis, and guidance provided by rating agencies and analysts. OTTI charges are recognized as a realized loss to the extent that they are credit related, unless we have the intent to sell the security or it is more-likely-than not that we will be required to sell the security. In those circumstances, the security is written down to fair value with the entire amount of the writedown charged to earnings as a component of realized losses. To determine if an impairment is other than temporary, we compare the present value of cash flows expected to be collected with the amortized cost of fixed income securities meeting certain criteria. In addition, this analysis is performed on all previously-impaired debt securities that continue to be held by us and all structured securities that were not of high-credit quality at the date of purchase. These impairment assessments may include, but are not limited to, discounted cash flow analyses ("DCFs"). For structured securities, including commercial mortgage-backed securities ("CMBS"), residential mortgage-backed securities ("RMBS"), ABS, and collateralized debt obligations ("CDOs"), we also consider variables such as expected default, severity, and prepayment assumptions based on security type and vintage, taking into consideration information from credit agencies, historical performance, and other relevant economic and performance factors. In making our assessment, we perform a DCF to determine the present value of future cash flows to be generated by the underlying collateral of the security. Any shortfall in the expected present value of the future cash flows, based on the DCF, from the amortized cost basis of a security is considered a “credit impairment,” with the remaining decline in fair value of a security considered as a “non-credit impairment.” As mentioned above, credit impairments are charged to earnings as a component of realized losses, while non-credit impairments are recorded to Other Comprehensive Income ("OCI") as a component of unrealized losses. Discounted Cash Flow Assumptions The discount rate we use in a DCF is the effective interest rate implicit in the security at the date of acquisition for those structured securities that were not of high-credit quality at acquisition. For all other securities, we use a discount rate that equals the current yield, excluding the impact of previous OTTI charges, used to accrete the beneficial interest. If applicable, we use a conditional default rate assumption in the DCF to estimate future defaults. The conditional default rate is the proportion of all loans outstanding in a security at the beginning of a time period that are expected to default during that period. Our assumption of this rate takes into consideration the uncertainty of future defaults as well as whether or not these securities have experienced significant cumulative losses or delinquencies to date. If applicable, conditional default rate assumptions apply at the total collateral pool level held in the securitization trust. Generally, collateral conditional default rates will “ramp-up” over time as the collateral seasons, because the performance begins to weaken and losses begin to surface. As time passes, depending on the collateral type and vintage, losses will peak and performance will begin to improve as weaker borrowers are removed from the pool through delinquency resolutions. In the later years of a collateral pool’s life, performance is generally materially better as the resulting favorable selection of the portfolio improves the overall quality and performance. For CMBS, we also consider the net operating income (“NOI”) generated by the underlying properties. Our assumptions of the properties’ ultimate cash flows take into consideration both an immediate reduction to the reported NOIs and decreases to projected NOIs. If applicable, we use a loan loss severity assumption in our DCF that is applied at the loan level of the collateral pool. The loan loss severity assumptions represent the estimated percentage loss on the loan-to-value exposure for a particular security. For CMBS, the loan loss severities applied are based on property type. Losses generated from the evaluations are then applied to the entire underlying deal structure in accordance with the original service agreements. Equity Securities Evaluation for OTTI of an equity security may include, but is not limited to, an evaluation of the following factors: • Whether the decline appears to be issuer or industry specific; • The relationship of market prices per share to book value per share at the date of acquisition and date of evaluation; • The price-earnings ratio at the time of acquisition and date of evaluation; • The financial condition and near-term prospects of the issuer, including any specific events that may influence the issuer's operations, coupled with our intention to hold the securities in the near-term; • The recent income or loss of the issuer; • The independent auditors' report on the issuer's recent financial statements; • The dividend policy of the issuer at the date of acquisition and the date of evaluation; • Buy/hold/sell recommendations or price projections published by outside investment advisors; • Rating agency announcements; • The length of time and the extent to which the fair value has been, or is expected to be, less than its cost in the near term; and • Our expectation of when the cost of the security will be recovered. If there is a decline in the fair value on an equity security that we do not intend to hold, or if we determine the decline is other-than-temporary, including declines driven by market volatility for which we cannot assert will recover in the near term, we will write down the carrying value of the investment and record the charge through earnings as a component of realized losses. Other Investments Our evaluation for OTTI of an other investment (i.e., an alternative investment) may include, but is not limited to, conversations with the management of the alternative investment concerning the following: • The current investment strategy; • Changes made or future changes to be made to the investment strategy; • Emerging issues that may affect the success of the strategy; and • The appropriateness of the valuation methodology used regarding the underlying investments. If there is a decline in the fair market value of an other investment that we do not intend to hold, or if we determine the decline is other than temporary, we write down the carry value of the investment and record the charge through earnings as a component of realized losses. |
Fair Value of Financial Instruments | Fair Values of Financial Instruments Assets The fair values of our investments are generated using various valuation techniques and are placed into the fair value hierarchy considering the following: (i) the highest priority is given to quoted prices in active markets for identical assets (Level 1); (ii) the next highest priority is given to quoted prices in markets that are not active or inputs that are observable either directly or indirectly, including quoted prices for similar assets in markets that are not active and other inputs that can be derived principally from, or corroborated by, observable market data for substantially the full term of the assets (Level 2); and (iii) the lowest priority is given to unobservable inputs supported by little or no market activity and that reflect our assumptions about the exit price, including assumptions that market participants would use in pricing the asset (Level 3). An asset’s classification within the fair value hierarchy is based on the lowest level of significant input to its valuation. Transfers between levels in the fair value hierarchy are recognized at the end of the reporting period. The techniques used to value our financial assets are as follows: |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts We estimate an allowance for doubtful accounts on our premiums receivable. This allowance is based on historical write-off percentages adjusted for the effects of current and anticipated trends. An account is charged off when we believe it is probable that we will not collect a receivable. In making this determination, we consider information obtained from our efforts to collect amounts due directly and/or through collection agencies. |
Share-Based Compensation | Share-Based Compensation Share-based compensation consists of all share-based payment transactions in which an entity acquires goods or services by issuing (or offering to issue) its shares, share units, share options, or other equity instruments. The cost resulting from all share-based payment transactions are recognized in the Financial Statements based on the fair value of both equity and liability awards. The fair value is measured at grant date for equity awards, whereas the fair value for liability awards are remeasured at each reporting period. Both the fair value of equity and liability awards is recognized over the requisite service period. The requisite service period is typically the lesser of the vesting period or the period of time from the grant date to the date of retirement eligibility. The expense recognized for share-based awards, which, in some cases, contain performance criteria, is based on the number of shares or units expected to be issued at the end of the performance period. |
Reinsurance | Reinsurance |
Property and Equipment | Property and Equipment Property and equipment used in operations, including certain costs incurred to develop or obtain computer software for internal use, are capitalized and carried at cost less accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets. The following estimated useful lives can be considered as general guidelines: Asset Category Years Computer hardware 3 Computer software 3 to 5 Internally developed software 5 to 10 Furniture and fixtures 10 Buildings and improvements 5 to 40 |
Deferred Policy Acquisition Costs | Deferred Policy Acquisition Costs Deferred policy acquisition costs are limited to costs directly related to the successful acquisition of insurance contracts. Costs meeting this definition typically include, among other things, sales commissions paid to our distribution partners, premium taxes, and the portion of employee salaries and benefits directly related to time spent on acquired contracts. These costs are deferred and amortized over the life of the contracts. Accounting guidance requires a premium deficiency analysis to be performed at the level an entity acquires, services, and measures the profitability of its insurance contracts. We currently perform three premium deficiency analyses for our insurance segments, consistent with our reportable segments of Standard Commercial Lines, Standard Personal Lines, and E&S Lines. A combined ratio of over 100% does not necessarily indicate a premium deficiency, as any year's combined ratio includes a portion of underwriting expenses that are expensed at policy inception and therefore are not covered by the remaining unearned premium. In addition, investment income is not contemplated in the combined ratio calculation. There were no premium deficiencies for any of the reported years, as the sum of the anticipated losses and loss expenses, unamortized acquisition costs, policyholder dividends, and other expenses for each segment did not exceed that segment’s related unearned premium and anticipated investment income. The investment yields assumed in the premium deficiency assessment for each reporting period, which are based on our actual average investment yield before tax as of the September 30 calculation date, were 2.5% for 2015 and 3.0% for both 2014 and 2013 . Deferred policy acquisition costs amortized to expense were $399.4 million for 2015 , $364.3 million for 2014 , and $331.8 million for 2013 . |
Goodwill | Goodwill Goodwill results from business acquisitions where the cost of assets and liabilities acquired exceeds the fair value of those assets and liabilities. A quantitative goodwill impairment analysis is performed if our quarterly qualitative analysis indicates that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. Goodwill is allocated to the reporting units for purposes of these analyses. |
Reserves for Losses and Loss Expenses | Reserves for Losses and Loss Expenses Reserves for losses and loss expenses are comprised of both case reserves on individual claims, and reserves for claims incurred but not reported ("IBNR"). Case reserves result from claims that have been reported to one or more of our ten insurance subsidiaries, which are collectively referred to as the "Insurance Subsidiaries," and are estimated at the amount of the expected ultimate payment. IBNR reserves are established at more aggregated levels than case basis reserves, and in addition to reserves on claims that have been incurred but not reported, they include provisions for future emergence on known claims, and as well as reopened claims. IBNR reserves are established based on the results of the Insurance Subsidiaries’ internal reserve analysis, supplemented with other internal and external information. The internal reserve analysis is performed quarterly, and relies upon generally accepted actuarial techniques. Such techniques assume that past experience, adjusted for the effects of current developments and anticipated trends, are an appropriate basis for predicting future events. While the reserve analysis is the primary basis for determining IBNR reserves, other internal and external factors are considered. Internal factors include: (i) supplemental data regarding claim reporting and settlement trends; (ii) exposure estimates for reported claims, along with recent development on those estimates with respect to individual large claims and the aggregate of all claims; (iii) the rate at which new large or complex claims are being reported; and (iv) additional trends observed by claims personnel or reported to them by defense counsel. External factors considered include: (i) legislative enactments; (ii) judicial decisions; (iii) legal developments in the determination of liability and the imposition of damages; and (iv) trends in general economic conditions, including the effects of inflation. Loss reserves are estimates, and as such, we also consider a range of possible loss and loss expense reserve estimates. This range is determined at the beginning of each year, and reflects the fact that there is no single precise method for estimating the required reserves, due to the many factors which may influence the amounts ultimately paid. Considering the reserve range along with all of the items described above, IBNR estimates are then established and recorded. The combination of the IBNR estimates along with the case reserve estimates on individual claims results in our total reserves for losses and loss expenses. These reserves are expected to be sufficient for settling all loss and loss reserve liabilities on unpaid claims, reflecting changes in the volume of business written, claims frequency and severity, the mix of business, claims processing, and other items that management expects to affect our ultimate settlement of losses and loss expenses. However, the ultimate claim settlements may be higher or lower than reserves established. As our experience emerges and other information develops, we revise our reserve estimates accordingly. The changes in these estimates, resulting from the continuous review process and the differences between estimates and ultimate payments, are reflected in the consolidated statements of income for the period in which such estimates are changed. The associated impacts may be material to the results of operations in future periods. We do not discount to present value that portion of our losses and loss expense reserves expected to be paid in future periods. Our loss and loss expense reserves implicitly include anticipated recoveries for salvage and subrogation claims. |
Revenue Recognition | Revenue Recognition The Insurance Subsidiaries' net premiums written (“NPW”) include direct insurance policy writings, plus reinsurance assumed and estimates of premiums earned but unbilled on the workers compensation and general liability lines of insurance, less reinsurance ceded. The estimated premium on the workers compensation and general liability lines is referred to as audit premium. We estimate this premium, as it is anticipated to be either billed or returned on policies subsequent to expiration based on exposure levels (i.e. payroll or sales). Audit premium is based on historical trends adjusted for the uncertainty of future economic conditions. Economic instability could ultimately impact our estimates and assumptions, and changes in our estimate may be material to the results of operations in future periods. Premiums written are recognized as revenue over the period that coverage is provided using the semi-monthly pro-rata method. Unearned premiums and prepaid reinsurance premiums represent that portion of premiums written that are applicable to the unexpired terms of policies in force. |
Dividends to Policyholders | Dividends to Policyholders We establish reserves for dividends to policyholders on certain policies, most significantly workers compensation policies. These dividends are based on the policyholders' loss experience. The dividend reserves are established based on past experience, adjusted for the effects of current developments and anticipated trends. The expense for these dividends is recognized over a period that begins at policy inception and ends with the payment of the dividend. We do not issue policies that entitle the policyholder to participate in the earnings or surplus of our Insurance Subsidiaries. |
Federal Income Tax | Federal Income Tax We use the asset and liability method of accounting for income taxes. Current federal income taxes are recognized for the estimated taxes payable or refundable on tax returns for the current year. Deferred federal income taxes arise from the recognition of temporary differences between financial statement carrying amounts and the tax basis of assets and liabilities. We consider all evidence, both positive and negative, with respect to our federal tax loss carryback availability, expected levels of pre-tax financial statement income, and federal taxable income, when evaluating whether the temporary differences will be realized. In projecting future taxable income, we begin with budgeted pre-tax income adjusted for estimated non-taxable items. The assumptions about future taxable income require significant judgment and are consistent with the plans and estimates we use to manage our businesses. A valuation allowance is established when it is more likely than not that some portion of the deferred tax asset will not be realized. A liability for uncertain tax positions is recorded when it is more likely than not that a tax position will not be sustained upon examination by taxing authorities. The effect of a change in tax rates is recognized in the period of enactment. |
Leases | Leases We have various operating leases for office space and equipment. Rental expense for such leases is recorded on a straight-line basis over the lease term. If a lease has a fixed and determinable escalation clause, or periods of rent holidays, the difference between rental expense and rent paid is included in "Other liabilities" as deferred rent in the Consolidated Balance Sheets. In addition, we have various capital leases for computer hardware and software. These leases are accounted for as an acquisition of an asset and an incurrence of an obligation. Depreciation is calculated using the straight-line method over the shorter of the estimated useful life of the asset or the lease term. |
Pension | Pension Our pension and post-retirement life benefit obligations and related costs are calculated using actuarial methods, within the framework of GAAP. Our pension benefit obligation is determined as the actuarial present value of the vested benefits to which the employee is currently entitled, but based on the employee's expected date of separation or retirement. Our funding policy provides that payments to our pension trust shall be equal to the minimum funding requirements of the Employee Retirement Income Security Act, plus additional amounts that the Board of Directors of Selective Insurance Company of America (“SICA”) may approve from time to time. Two key assumptions, the discount rate and the expected return on plan assets, are important elements of expense and/or liability measurement. We evaluate these key assumptions annually unless facts indicate that a more frequent review is required. The discount rate enables us to state expected future cash flows at their present value on the measurement date. The purpose of the discount rate is to determine the interest rates inherent in the price at which pension benefits could be effectively settled. Our discount rate selection is based on high-quality, long-term corporate bonds. To determine the expected long-term rate of return on the plan assets, we consider the current and expected asset allocation, as well as historical and expected returns on each plan asset class. Other assumptions involve demographic factors such as retirement age, mortality, turnover, and rate of compensation increases. |
Summary of Significant Accoun36
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Estimated Useful Life for Property and Equipment | Asset Category Years Computer hardware 3 Computer software 3 to 5 Internally developed software 5 to 10 Furniture and fixtures 10 Buildings and improvements 5 to 40 |
Adoption of Accounting Pronou37
Adoption of Accounting Pronouncements Adoption of Accounting Pronouncements (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Adoption of Accounting Pronouncements [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | As such, all historical data in this Form 10-K has been restated to reflect the revised guidance, as follows: Balance Sheet Information Year ended December 31, 2014 ($ in thousands) As Originally Reported As Restated Other Assets $ 73,215 66,607 Total Assets 6,581,550 6,574,942 Notes Payable 379,297 372,689 Total Liabilities 5,305,964 5,299,356 Total Liabilities and Stockholders' Equity 6,581,550 6,574,942 Income Statement Information Year ended December 31, 2014 2013 ($ in thousands) As Originally Reported As Restated As Originally Reported As Restated Interest Expense $ 22,086 23,063 $ 22,538 26,361 Other Expense 33,673 32,696 35,686 31,863 |
Statements of Cash Flow (Tables
Statements of Cash Flow (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Supplemental Cash Flow Information [Abstract] | |
Schedule of Cash Flow, Supplemental Disclosures | ($ in thousands) 2015 2014 2013 Cash paid during the period for: Interest $ 21,892 22,221 21,465 Federal income tax 39,500 22,699 20,000 Non-cash items: Tax-free exchange of fixed income securities, AFS 36,792 20,781 37,965 Tax-free exchange of fixed income securities, HTM 15,257 4,289 15,820 Stock split related to equity securities, AFS 4,239 334 — Assets acquired under capital lease arrangements 6,760 5,642 2,583 Non-cash purchase of property and equipment — 338 20 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Investment [Line Items] | |
Schedule of Unrealized Gains On Investments | ($ in thousands) 2015 2014 2013 AFS securities: Fixed income securities $ 55,689 90,336 39,559 Equity securities 13,235 32,389 37,421 Total AFS securities 68,924 122,725 76,980 HTM securities: Fixed income securities 300 958 2,257 Total HTM securities 300 958 2,257 Total net unrealized gains 69,224 123,683 79,237 Deferred income tax expense (24,228 ) (43,289 ) (27,733 ) Net unrealized gains, net of deferred income tax 44,996 80,394 51,504 (Decrease) increase in net unrealized gains in OCI, net of deferred income tax $ (35,398 ) 28,890 (70,824 ) |
Schedule of Held-to-maturity Securities | December 31, 2015 Net Unrealized Unrecognized Unrecognized Amortized Gains Carrying Holding Holding Fair ($ in thousands) Cost (Losses) Value Gains Losses Value Obligations of state and political subdivisions $ 175,269 848 176,117 5,763 — 181,880 Corporate securities 20,228 (185 ) 20,043 1,972 — 22,015 ABS 1,030 (120 ) 910 118 — 1,028 CMBS 4,527 (243 ) 4,284 337 — 4,621 Total HTM fixed income securities $ 201,054 300 201,354 8,190 — 209,544 December 31, 2014 Net Unrealized Unrecognized Unrecognized Amortized Gains Carrying Holding Holding Fair ($ in thousands) Cost (Losses) Value Gains Losses Value Foreign government $ 5,292 47 5,339 55 — 5,394 Obligations of state and political subdivisions 285,301 2,071 287,372 11,760 — 299,132 Corporate securities 18,899 (273 ) 18,626 2,796 — 21,422 ABS 2,818 (455 ) 2,363 460 — 2,823 CMBS 4,869 (432 ) 4,437 753 — 5,190 Total HTM fixed income securities $ 317,179 958 318,137 15,824 — 333,961 |
Schedule of Available For Sale Securities | December 31, 2015 Cost/ Amortized Unrealized Unrealized Fair ($ in thousands) Cost Gains Losses Value AFS fixed income securities: U.S. government and government agencies $ 99,485 4,721 (91 ) 104,115 Foreign government 14,885 298 (2 ) 15,181 Obligations of states and political subdivisions 1,314,779 44,523 (160 ) 1,359,142 Corporate securities 1,892,296 23,407 (15,521 ) 1,900,182 ABS 244,541 531 (918 ) 244,154 CMBS 1 245,252 750 (2,410 ) 243,592 RMBS 2 541,276 4,274 (3,713 ) 541,837 Total AFS fixed income securities 4,352,514 78,504 (22,815 ) 4,408,203 AFS equity securities: Common stock 181,991 14,796 (1,998 ) 194,789 Preferred stock 11,825 477 (40 ) 12,262 Total AFS equity securities 193,816 15,273 (2,038 ) 207,051 Total AFS securities $ 4,546,330 93,777 (24,853 ) 4,615,254 December 31, 2014 Cost/ Amortized Unrealized Unrealized Fair ($ in thousands) Cost Gains Losses Value AFS fixed income securities: U.S. government and government agencies $ 116,666 7,592 (128 ) 124,130 Foreign government 27,035 796 — 27,831 Obligations of states and political subdivisions 1,208,776 38,217 (729 ) 1,246,264 Corporate securities 1,763,427 42,188 (5,809 ) 1,799,806 ABS 176,837 760 (373 ) 177,224 CMBS 1 177,932 2,438 (777 ) 179,593 RMBS 2 505,113 8,587 (2,426 ) 511,274 Total AFS fixed income securities 3,975,786 100,578 (10,242 ) 4,066,122 AFS equity securities: Common stock 159,011 32,721 (332 ) 191,400 Total AFS equity securities 159,011 32,721 (332 ) 191,400 Total AFS securities $ 4,134,797 133,299 (10,574 ) 4,257,522 1 CMBS includes government guaranteed agency securities with a fair value of $4.5 million at December 31, 2015 and $13.2 million at December 31, 2014 . 2 RMBS includes government guaranteed agency securities with a fair value of $19.7 million at December 31, 2015 and $32.4 million at December 31, 2014 . |
Schedule of Fair Value and Gross Pre-Tax Net Unrealized/Unrecognized Loss of Securities by Length of Time | December 31, 2015 Less than 12 months 12 months or longer ($ in thousands) Fair Value Unrealized Losses 1 Fair Value Unrealized Losses 1 AFS fixed income securities: U.S. government and government agencies $ 16,006 (87 ) 396 (4 ) Foreign government 1,067 (2 ) — — Obligations of states and political subdivisions 28,617 (160 ) — — Corporate securities 761,479 (12,671 ) 50,382 (2,850 ) ABS 197,477 (807 ) 12,022 (111 ) CMBS 146,944 (2,196 ) 15,385 (214 ) RMBS 264,914 (1,992 ) 63,395 (1,721 ) Total AFS fixed income securities 1,416,504 (17,915 ) 141,580 (4,900 ) AFS equity securities: Common stock 31,148 (1,998 ) — — Preferred stock 1,531 (40 ) — — Total AFS equity securities 32,679 (2,038 ) — — Subtotal $ 1,449,183 (19,953 ) 141,580 (4,900 ) Less than 12 months 12 months or longer ($ in thousands) Fair Value Unrealized Losses 1 Unrecognized Gains 2 Fair Value Unrealized Losses 1 Unrecognized Gains 2 HTM securities: ABS $ — — — 805 (122 ) 116 Subtotal — — — 805 (122 ) 116 Total AFS and HTM $ 1,449,183 (19,953 ) — 142,385 (5,022 ) 116 December 31, 2014 Less than 12 months 12 months or longer ($ in thousands) Fair Value Unrealized Losses 1 Fair Value Unrealized Losses 1 AFS fixed income securities: U.S. government and government agencies $ 7,567 (13 ) 10,866 (115 ) Obligations of states and political subdivisions 47,510 (105 ) 64,018 (624 ) Corporate securities 276,648 (1,734 ) 153,613 (4,075 ) ABS 113,202 (178 ) 15,618 (195 ) CMBS 12,799 (34 ) 59,219 (743 ) RMBS 3,399 (8 ) 138,724 (2,418 ) Total AFS fixed income securities 461,125 (2,072 ) 442,058 (8,170 ) AFS equity securities: Common stock 5,262 (336 ) — — Total AFS equity securities 5,262 (336 ) — — Subtotal $ 466,387 (2,408 ) 442,058 (8,170 ) Less than 12 months 12 months or longer ($ in thousands) Fair Value Unrealized Losses 1 Unrecognized Gains 2 Fair Value Unrealized Losses 1 Unrecognized Gains 2 HTM securities: Obligations of states and political subdivisions $ 196 (3 ) 1 — — — ABS — — — 2,235 (455 ) 439 Subtotal 196 (3 ) 1 2,235 (455 ) 439 Total AFS and HTM $ 466,583 (2,411 ) 1 444,293 (8,625 ) 439 1 Gross unrealized losses include non-OTTI unrealized amounts and OTTI losses recognized in AOCI. In addition, this column includes remaining unrealized gain or loss amounts on securities that were transferred to an HTM designation in the first quarter of 2009 for those securities that are in a net unrealized/unrecognized loss position. 2 Unrecognized holding gains represent fair value fluctuations from the later of: (i) the date a security is designated as HTM; or (ii) the date that an OTTI charge is recognized on an HTM security. |
Schedule of the Number of Securities in an Unrealized Unrecognized Loss Position | ($ in thousands) December 31, 2015 December 31, 2014 Number of Issues % of Market/Book Unrealized/Unrecognized Loss Number of Issues % of Market/Book Unrealized/ Unrecognized Loss 606 80% - 99% $ 22,971 350 80% - 99% $ 10,596 3 60% - 79% 1,888 — 60% - 79% — — 40% - 59% — — 40% - 59% — — 20% - 39% — — 20% - 39% — — 0% - 19% — — 0% - 19% — $ 24,859 $ 10,596 |
Schedule of Other Investment Portfolio by Strategy and the Remaining Commitment Amount Associated With Each Strategy | Other Investments Carrying Value 2015 December 31, December 31, Remaining ($ in thousands) 2015 2014 Commitment Alternative Investments Private equity $ 35,088 48,538 30,204 Private credit 13,246 18,533 15,129 Real assets 19,500 25,897 25,820 Total alternative investments 67,834 92,968 71,153 Other securities 10,008 6,235 3,200 Total other investments $ 77,842 99,203 74,353 |
Schedule of Aggregated Summarized Balance Sheet Financial Information For Partnerhips In Our Alternative Investment Portfolio | Balance Sheet Information September 30, ($ in millions) 2015 2014 Investments $ 7,527 10,096 Total assets 8,515 10,695 Total liabilities 316 545 Total partners’ capital 8,199 10,150 |
Schedule of Aggregated Summarized Income Statement Financial Information For Partnerhips In Our Alternative Investment Portfolio | Income Statement Information 12 months ended September 30, ($ in millions) 2015 2014 2013 Net investment income $ 129 226 406 Realized gains 1,187 581 913 Net change in unrealized (depreciation) appreciation (1,364 ) 1,098 382 Net income $ (48 ) 1,905 1,701 Insurance Subsidiaries' other investments income (1.9 ) 13.6 15.2 |
Schedule Of Securities Pledged As Collateral | The following table summarizes the market value of these securities at December 31, 2015 : ($ in millions) FHLBI Collateral Reinsurance Collateral State and Regulatory Deposits Total U.S. government and government agencies $ 7.5 — 24.0 31.5 Obligations of states and political subdivisions — 5.0 — 5.0 Corporate securities — 4.7 — 4.7 CMBS 1.2 — — 1.2 RMBS 55.0 1.8 — 56.8 Total pledged as collateral $ 63.7 11.5 24.0 99.2 |
Schedule of Components of Net Investment Income Earned | ($ in thousands) 2015 2014 2013 Fixed income securities $ 123,230 126,489 121,582 Equity securities, dividend income 9,161 7,449 6,140 Short-term investments 112 66 117 Other investments (1,890 ) 13,580 15,208 Investment expenses (9,297 ) (8,876 ) (8,404 ) Net investment income earned $ 121,316 138,708 134,643 |
Schedule of OTTI by Asset Type | 2015 Recognized in ($ in thousands) Gross Included in OCI Earnings AFS fixed income securities: Corporate securities $ 2,188 — 2,188 RMBS 1 — 1 Total AFS fixed income securities 2,189 — 2,189 AFS equity securities: Common stock 15,996 — 15,996 Preferred stock 181 — 181 Total AFS equity securities 16,177 — 16,177 Total OTTI losses $ 18,366 — 18,366 2014 Recognized in ($ in thousands) Gross Included in OCI Earnings AFS fixed income securities: RMBS $ 7 — 7 Total AFS fixed income securities 7 — 7 AFS equity securities: Common stock 10,517 — 10,517 Total AFS equity securities 10,517 — 10,517 Other investments 580 — 580 Total OTTI losses $ 11,104 — 11,104 2013 Recognized in ($ in thousands) Gross Included in OCI Earnings HTM fixed income securities: ABS $ (44 ) (47 ) 3 Total HTM fixed income securities (44 ) (47 ) 3 AFS fixed income securities: RMBS 16 (30 ) 46 Total AFS fixed income securities 16 (30 ) 46 AFS equity securities: Common stock 3,747 — 3,747 Total AFS equity securities 3,747 — 3,747 Other investments 1,847 — 1,847 Total OTTI losses $ 5,566 (77 ) 5,643 |
Schedule of Gross Credit Loss Impairments on Fixed Maturity Securities for Which a Portion of the OTTI Charge Was Recognized In OCI | |
Schedule of Components of Net Realized Gains Excluding OTTI Charges | ($ in thousands) 2015 2014 2013 HTM fixed income securities Gains $ 5 2 195 Losses (1 ) (20 ) (95 ) AFS fixed income securities Gains 4,515 1,945 3,340 Losses (312 ) (392 ) (373 ) AFS equity securities Gains 29,168 36,871 24,776 Losses (1,347 ) (704 ) (408 ) Other investments Gains 162 1 — Losses (653 ) — (1,060 ) Total other net realized investment gains $ 31,537 37,703 26,375 |
Held-to-maturity Securities [Member] | |
Investment [Line Items] | |
Schedule Of Fixed Maturity Securities By Contractual Maturities | ($ in thousands) Carrying Value Fair Value Due in one year or less $ 98,601 99,872 Due after one year through five years 89,231 94,358 Due after five years through 10 years 13,522 15,314 Total HTM fixed income securities $ 201,354 209,544 |
AFS Fixed Income Securities [Member] | |
Investment [Line Items] | |
Schedule Of Fixed Maturity Securities By Contractual Maturities | ($ in thousands) Fair Value Due in one year or less $ 472,331 Due after one year through five years 2,135,301 Due after five years through 10 years 1,733,858 Due after 10 years 66,713 Total AFS fixed income securities $ 4,408,203 |
Comprehensive Income (Tables)
Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |
Schedule of Components of Comprehensive Income-Gross and Net of Tax | 2015 ($ in thousands) Gross Tax Net Net income $ 232,692 66,831 165,861 Components of OCI: Unrealized gains on investment securities : Unrealized holding losses during the year (40,221 ) (14,078 ) (26,143 ) Amounts reclassified into net income: HTM securities (580 ) (203 ) (377 ) Non-credit OTTI 357 125 232 Realized gains on AFS securities (14,016 ) (4,906 ) (9,110 ) Net unrealized losses (54,460 ) (19,062 ) (35,398 ) Defined benefit pension and post-retirement plans: Net actuarial gain 2,438 853 1,585 Amounts reclassified into net income: Net actuarial loss 7,077 2,477 4,600 Defined benefit pension and post-retirement plans 9,515 3,330 6,185 Other comprehensive loss (44,945 ) (15,732 ) (29,213 ) Comprehensive income $ 187,747 51,099 136,648 2014 ($ in thousands) Gross Tax Net Net income $ 197,131 55,304 141,827 Components of OCI: Unrealized gains on investment securities : Unrealized holding gains during the year 72,940 25,529 47,411 Amounts reclassified into net income: HTM securities (1,299 ) (455 ) (844 ) Non-credit OTTI 1,669 584 1,085 Realized gains on AFS securities (28,864 ) (10,102 ) (18,762 ) Net unrealized gains 44,446 15,556 28,890 Defined benefit pension and post-retirement plans: Net actuarial loss (54,136 ) (18,947 ) (35,189 ) Amounts reclassified into net income: Net actuarial loss 1,902 666 1,236 Defined benefit pension and post-retirement plans (52,234 ) (18,281 ) (33,953 ) Other comprehensive loss (7,788 ) (2,725 ) (5,063 ) Comprehensive income $ 189,343 52,579 136,764 2013 ($ in thousands) Gross Tax Net Net income $ 142,267 35,849 106,418 Components of OCI: Unrealized losses on investment securities : Unrealized holding losses during the period (83,934 ) (29,377 ) (54,557 ) Non-credit OTTI recognized in OCI 77 27 50 Amounts reclassified into net income: HTM securities (1,577 ) (552 ) (1,025 ) Non-credit OTTI 14 5 9 Realized gains on AFS securities (23,540 ) (8,239 ) (15,301 ) Net unrealized losses (108,960 ) (38,136 ) (70,824 ) Defined benefit pension and post-retirement plans: Net actuarial gain 59,654 20,879 38,775 Amounts reclassified into net income: Net actuarial loss 4,374 1,531 2,843 Prior service cost 10 4 6 Curtailment expense 16 5 11 Defined benefit pension and post-retirement plans 64,054 22,419 41,635 Other comprehensive loss (44,906 ) (15,717 ) (29,189 ) Comprehensive income $ 97,361 20,132 77,229 |
Schedule of Components of Accumulated Other Comprehensive Income | Net Unrealized (Loss) Gain on Investment Securities ($ in thousands) OTTI Related HTM Related All Other Investments Subtotal Defined Benefit Pension and Post- retirement Plans Total AOCI Balance, December 31, 2013 $ (1,599 ) 1,467 51,635 51,503 (26,652 ) 24,851 OCI before reclassifications — — 47,411 47,411 (35,189 ) 12,222 Amounts reclassified from AOCI 1,085 (844 ) (18,762 ) (18,521 ) 1,236 (17,285 ) Net current period OCI 1,085 (844 ) 28,649 28,890 (33,953 ) (5,063 ) Balance, December 31, 2014 (514 ) 623 80,284 80,393 (60,605 ) 19,788 OCI before reclassifications — — (26,143 ) (26,143 ) 1,585 (24,558 ) Amounts reclassified from AOCI 232 (377 ) (9,110 ) (9,255 ) 4,600 (4,655 ) Net current period OCI 232 (377 ) (35,253 ) (35,398 ) 6,185 (29,213 ) Balance, December 31, 2015 $ (282 ) 246 45,031 44,995 (54,420 ) (9,425 ) |
Schedule of Reclassification out of Accumulated Other Comprehensive Income | Affected Line Item in the Consolidated Statement of Income ($ in thousands) Year ended December 31, 2015 Year ended December 31, 2014 OTTI related Non-credit OTTI on disposed securities $ 357 1,669 Net realized gains 357 1,669 Income from continuing operations, before federal income tax (125 ) (584 ) Total federal income tax expense 232 1,085 Net income HTM related Unrealized gains and losses on HTM disposals 308 157 Net realized investment gains Amortization of net unrealized gains on HTM securities (888 ) (1,456 ) Net investment income earned (580 ) (1,299 ) Income from continuing operations, before federal income tax 203 455 Total federal income tax expense (377 ) (844 ) Net income Realized gains and losses on AFS Realized gains and losses on AFS disposals (14,016 ) (28,864 ) Net realized investment gains (14,016 ) (28,864 ) Income from continuing operations, before federal income tax 4,906 10,102 Total federal income tax expense (9,110 ) (18,762 ) Net income Defined benefit pension and post-retirement life plans Net actuarial loss 1,538 331 Losses and loss expenses incurred 5,539 1,571 Policy acquisition costs 7,077 1,902 Income from continuing operations, before federal income tax Total defined benefit pension and post-retirement life 7,077 1,902 Income from continuing operations, before federal income tax (2,477 ) (666 ) Total federal income tax expense 4,600 1,236 Net income Total reclassifications for the period $ (4,655 ) (17,285 ) Net income |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Schedule of Carrying Amounts and Estimated Fair Values of Financial Instruments | December 31, 2015 December 31, 2014 ($ in thousands) Carrying Amount Fair Value Carrying Amount Fair Value Financial Assets Fixed income securities: HTM $ 201,354 209,544 318,137 333,961 AFS 4,408,203 4,408,203 4,066,122 4,066,122 Equity securities, AFS 207,051 207,051 191,400 191,400 Short-term investments 194,819 194,819 131,972 131,972 Financial Liabilities Notes payable: 0.63% borrowings from FHLBI 15,000 14,977 — — 1.25% borrowings from FHLBI 45,000 45,083 45,000 45,244 7.25% Senior Notes 49,898 56,929 49,896 59,181 6.70% Senior Notes 99,415 110,363 99,401 114,845 5.875% Senior Notes 185,000 192,474 185,000 185,000 Subtotal 394,313 419,826 379,297 404,270 Unamortized debt issuance costs (6,121 ) (6,608 ) Total notes payable $ 388,192 372,689 |
Schedule of Quantitative Disclosures of our Financial Assets that were Measured at Fair Value | December 31, 2015 Fair Value Measurements Using ($ in thousands) Assets Measured at Fair Value 12/31/15 Quoted Prices in Active Markets for Identical Assets/ Liabilities (Level 1) 1 Significant Other Observable Inputs (Level 2) 1 Significant Unobservable Inputs (Level 3) Description Measured on a recurring basis: AFS fixed income securities: U.S. government and government agencies $ 104,115 42,702 61,413 — Foreign government 15,181 — 15,181 — Obligations of states and political subdivisions 1,359,142 — 1,359,142 — Corporate securities 1,900,182 — 1,900,182 — ABS 244,154 — 244,154 — CMBS 243,592 — 243,592 — RMBS 541,837 — 541,837 — Total AFS fixed income securities 4,408,203 42,702 4,365,501 — AFS equity securities: Common stock 194,789 191,517 — 3,272 Preferred stock 12,262 12,262 — — Total AFS equity securities 207,051 203,779 — 3,272 Total AFS securities 4,615,254 246,481 4,365,501 3,272 Short-term investments 194,819 194,819 — — Total assets $ 4,810,073 441,300 4,365,501 3,272 December 31, 2014 Fair Value Measurements Using ($ in thousands) Assets Measured at Fair Value 12/31/14 Quoted Prices in Active Markets for Identical Assets/ Liabilities (Level 1) 1 Significant Other Observable Inputs (Level 2) 1 Significant Unobservable Inputs (Level 3) Description Measured on a recurring basis: AFS fixed income securities: U.S. government and government agencies $ 124,130 53,199 70,931 — Foreign government 27,831 — 27,831 — Obligations of states and political subdivisions 1,246,264 — 1,246,264 — Corporate securities 1,799,806 — 1,799,806 — ABS 177,224 — 177,224 — CMBS 179,593 — 179,593 — RMBS 511,274 — 511,274 — Total AFS fixed income securities 4,066,122 53,199 4,012,923 — AFS equity securities: Common stock 191,400 188,500 — 2,900 Total AFS equity securities 191,400 188,500 — 2,900 Total AFS securities 4,257,522 241,699 4,012,923 2,900 Short-term investments 131,972 131,972 — — Total assets $ 4,389,494 373,671 4,012,923 2,900 1 There were no transfers of securities between Level 1 and Level 2. |
Schedule of Summary of the Changes in Fair Value of Securities Using Level 3 Inputs | 2015 ($ in thousands) Common Stock Fair value, December 31, 2014 $ 2,900 Total net (losses) gains for the period included in: OCI — Net income — Purchases 487 Sales (115 ) Issuances — Settlements — Transfers into Level 3 — Transfers out of Level 3 — Fair value, December 31, 2015 $ 3,272 |
Schedule of Quantitative Information of our Financial Assets and Liabilities that were Disclosed at Fair Value | December 31, 2015 Fair Value Measurements Using ($ in thousands) Assets/Liabilities Disclosed at Fair Value 12/31/2015 Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Financial Assets HTM: Obligations of states and political subdivisions $ 181,880 — 181,880 — Corporate securities 22,015 — 18,679 3,336 ABS 1,028 — 1,028 — CMBS 4,621 — 4,621 — Total HTM fixed income securities $ 209,544 — 206,208 3,336 Financial Liabilities Notes payable: 0.63% borrowings from FHLBI $ 14,977 — 14,977 — 1.25% borrowings from FHLBI 45,083 — 45,083 — 7.25% Senior Notes 56,929 — 56,929 — 6.70% Senior Notes 110,363 — 110,363 — 5.875% Senior Notes 192,474 192,474 — — Total notes payable $ 419,826 192,474 227,352 — December 31, 2014 Fair Value Measurements Using ($ in thousands) Assets/Liabilities Disclosed at Fair Value 12/31/2014 Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Financial Assets HTM: Foreign government $ 5,394 — 5,394 — Obligations of states and political subdivisions 299,132 — 299,132 — Corporate securities 21,422 — 21,422 — ABS 2,823 — 2,823 — CMBS 5,190 — 5,190 — Total HTM fixed income securities $ 333,961 — 333,961 — Financial Liabilities Notes payable: 1.25% borrowings from FHLBI $ 45,244 — 45,244 — 7.25% Senior Notes 59,181 — 59,181 — 6.70% Senior Notes 114,845 — 114,845 — 5.875% Senior Notes 185,000 185,000 — — Total notes payable $ 404,270 185,000 219,270 — |
Reinsurance (Tables)
Reinsurance (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Reinsurance Disclosures [Abstract] | |
Schedule of Total Reinsurance Balances Segregated By Reinsurer | As of December 31, 2015 As of December 31, 2014 ($ in thousands) Reinsurance Balances % of Reinsurance Balance Reinsurance Balances % of Reinsurance Balance Total reinsurance recoverables $ 561,968 $ 581,548 Total prepaid reinsurance premiums 140,889 146,993 Total reinsurance balance 702,857 728,541 Federal and state pools 1 : NFIP 164,130 24 % 172,547 24 % NJ Unsatisfied Claim Judgment Fund 71,884 10 76,342 11 Other 3,136 — 2,557 — Total federal and state pools 239,150 34 251,446 35 Remaining reinsurance balance $ 463,707 66 $ 477,095 65 Munich Re Group (A.M. Best rated "A+") $ 112,889 16 $ 110,270 15 Hannover Ruckversicherungs AG (A.M. Best rated "A+") 99,535 14 100,959 14 AXIS Reinsurance Company (A.M. Best rated "A+") 53,374 8 51,014 7 Swiss Re Group (A.M. Best rated "A+") 51,340 7 55,026 8 Partner Reinsurance Company of the U.S. (A.M. Best rated “Au”) 20,748 3 25,424 3 All other reinsurers 125,821 18 134,402 18 Total reinsurers 463,707 66 % 477,095 65 % Less: collateral 2 (106,449 ) (114,843 ) Reinsurers, net of collateral $ 357,258 $ 362,252 1 Considered to have minimal risk of default. 2 Includes letters of credit, trust funds, and funds held against reinsurance recoverables. Note: Some amounts may not foot due to rounding. |
List Of Direct, Assumed, And Ceded Reinsurance Amounts | ($ in thousands) 2015 2014 2013 Premiums written: Direct $ 2,403,519 2,228,270 2,133,793 Assumed 23,848 26,306 43,650 Ceded (357,463 ) (369,296 ) (367,284 ) Net $ 2,069,904 1,885,280 1,810,159 Premiums earned: Direct $ 2,330,267 2,183,258 2,048,530 Assumed 23,209 34,653 44,464 Ceded (363,567 ) (365,302 ) (356,922 ) Net $ 1,989,909 1,852,609 1,736,072 Losses and loss expenses incurred: Direct $ 1,274,872 1,314,864 1,370,293 Assumed 16,996 26,187 32,678 Ceded (143,327 ) (183,550 ) (281,233 ) Net $ 1,148,541 1,157,501 1,121,738 |
Schedule of Ceded Premiums and Losses Related to Flood Operations | Ceded to NFIP ($ in thousands) 2015 2014 2013 Ceded premiums written $ (228,907 ) (237,718 ) (236,309 ) Ceded premiums earned (233,940 ) (234,224 ) (228,650 ) Ceded losses and loss expenses incurred (62,078 ) (57,323 ) (183,142 ) |
Reserve for Losses and Loss E43
Reserve for Losses and Loss Expenses (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Insurance Loss Reserves [Abstract] | |
Schedule of Roll Forward of Reserves for Losses and Loss Expenses | ($ in thousands) 2015 2014 2013 Gross reserves for losses and loss expenses, at beginning of year $ 3,477,870 3,349,770 4,068,941 Less: reinsurance recoverable on unpaid losses and loss expenses, at beginning of year 571,978 540,839 1,409,755 Net reserves for losses and loss expenses, at beginning of year 2,905,892 2,808,931 2,659,186 Incurred losses and loss expenses for claims occurring in the: Current year 1,217,550 1,216,770 1,147,263 Prior years (69,009 ) (59,269 ) (25,525 ) Total incurred losses and loss expenses 1,148,541 1,157,501 1,121,738 Paid losses and loss expenses for claims occurring in the: Current year 446,550 468,478 399,559 Prior years 641,174 592,062 572,434 Total paid losses and loss expenses 1,087,724 1,060,540 971,993 Net reserves for losses and loss expenses, at end of year 2,966,709 2,905,892 2,808,931 Add: Reinsurance recoverable on unpaid losses and loss expenses, at end of year 551,019 571,978 540,839 Gross reserves for losses and loss expenses at end of year $ 3,517,728 3,477,870 3,349,770 |
Schedule of(Favorable)/ Unfavorable Prior Year Development | (Favorable)/Unfavorable Prior Year Development ($ in millions) 2015 2014 2013 General Liability $ (51.0 ) (43.9 ) (20.0 ) Commercial Automobile 2.4 (4.1 ) (4.5 ) Workers Compensation (37.0 ) — 23.5 Businessowners' Policies 2.2 1.9 (9.5 ) Commercial Property (3.0 ) (2.1 ) (7.5 ) Homeowners 1.5 (4.0 ) (2.5 ) Personal Automobile 0.4 (10.8 ) (3.0 ) E&S 15.5 3.7 (2.0 ) Total $ (69.0 ) (59.3 ) (25.5 ) |
Schedule of Exposure to Various Asbestos and Environmental Claims | 2015 ($ in millions) Gross Net Asbestos $ 8.0 6.8 Landfill sites 13.1 8.3 Leaking underground storage tanks 9.3 8.1 Total $ 30.4 23.2 |
Schedule of Roll Forward of Gross and Net Asbestos and Environmental Incurred Losses and Loss Expenses and Related Reserves | 2015 2014 2013 ($ in thousands) Gross Net Gross Net Gross Net Asbestos Reserves for losses and loss expenses at beginning of year $ 8,751 7,314 8,897 7,518 9,170 7,791 Incurred losses and loss expenses (428 ) (77 ) 60 — — — Less: losses and loss expenses paid (299 ) (444 ) (206 ) (204 ) (273 ) (273 ) Reserves for losses and loss expenses at the end of year $ 8,024 6,793 8,751 7,314 8,897 7,518 Environmental Reserves for losses and loss expenses at beginning of year $ 21,902 15,680 23,867 17,649 26,405 19,978 Incurred losses and loss expenses 3,396 3,397 107 — 347 68 Less: losses and loss expenses paid (2,911 ) (2,709 ) (2,072 ) (1,969 ) (2,885 ) (2,397 ) Reserves for losses and loss expenses at the end of year $ 22,387 16,368 21,902 15,680 23,867 17,649 Total Asbestos and Environmental Claims Reserves for losses and loss expenses at beginning of year $ 30,653 22,994 32,764 25,167 35,575 27,769 Incurred losses and loss expenses 2,968 3,320 167 — 347 68 Less: losses and loss expenses paid (3,210 ) (3,153 ) (2,278 ) (2,173 ) (3,158 ) (2,670 ) Reserves for losses and loss expenses at the end of year $ 30,411 23,161 30,653 22,994 32,764 25,167 |
Indebtedness (Tables)
Indebtedness (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of Convenants in the Line of Credit | Required as of Actual as of December 31, 2015 December 31, 2015 Consolidated net worth $960 million $1.4 billion Statutory surplus Not less than $750 million $1.4 billion Debt-to-capitalization ratio 1 Not to exceed 35% 22.1% A.M. Best financial strength rating Minimum of A- A |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Schedule of Revenue from Continuing Operations By Segment | Revenue by Segment Years ended December 31, ($ in thousands) 2015 2014 2013 Standard Commercial Lines: Net premiums earned: Commercial automobile $ 358,909 333,310 310,994 Workers compensation 290,075 274,585 267,612 General liability 483,291 444,938 405,322 Commercial property 269,022 244,792 224,412 Businessowners’ policies 93,428 85,788 77,097 Bonds 20,350 19,288 19,000 Other 14,367 13,011 12,182 Miscellaneous income 6,343 14,747 10,253 Total Standard Commercial Lines revenue 1,535,785 1,430,459 1,326,872 Standard Personal Lines: Net premiums earned: Personal automobile 146,784 151,317 152,005 Homeowners 134,382 134,273 127,991 Other 6,968 11,157 14,336 Miscellaneous income 1,113 1,834 1,948 Total Standard Personal Lines revenue 289,247 298,581 296,280 E&S Lines: Net premiums earned: General liability 121,802 96,142 88,761 Commercial property 42,736 38,572 32,054 Commercial automobile 7,795 5,436 4,306 Miscellaneous income — 17 — Total E&S Lines revenue 172,333 140,167 125,121 Investments: Net investment income 121,316 138,708 134,643 Net realized investment gains 13,171 26,599 20,732 Total investment revenues 134,487 165,307 155,375 Total all segments 2,131,852 2,034,514 1,903,648 Other income — 347 93 Total revenues $ 2,131,852 2,034,861 1,903,741 |
Schedule of Income from Continuing Operations before Federal Income Tax | Income from Continuing Operations before Federal Income Tax Years ended December 31, ($ in thousands) 2015 2014 2013 Standard Commercial Lines: Underwriting gain, before federal income tax $ 164,496 61,221 33,856 GAAP combined ratio 89.2 % 95.7 % 97.4 % Statutory combined ratio 89.2 % 95.5 % 97.1 % Standard Personal Lines: Underwriting gain, before federal income tax 1,336 16,536 8,645 GAAP combined ratio 99.5 % 94.4 % 97.1 % Statutory combined ratio 99.9 % 94.5 % 96.9 % E&S Lines: Underwriting (loss) gain, before federal income tax (16,803 ) 386 (3,735 ) GAAP combined ratio 109.8 % 99.7 % 103.0 % Statutory combined ratio 108.4 % 99.2 % 102.9 % Investments: Net investment income $ 121,316 138,708 134,643 Net realized investment gains 13,171 26,599 20,732 Total investment income, before federal income tax 134,487 165,307 155,375 Tax on investment income 32,090 43,811 40,489 Total investment income, after federal income tax $ 102,397 121,496 114,886 |
Schedule of Reconciliation of Segment Results to Income From Continuing Operations, Before Federal Income Tax | Reconciliation of Segment Results to Income from Continuing Operations, before Federal Income Tax Years ended December 31, ($ in thousands) 2015 2014 2013 Underwriting gain (loss), before federal income tax Standard Commercial Lines $ 164,496 61,221 33,856 Standard Personal Lines 1,336 16,536 8,645 E&S Lines (16,803 ) 386 (3,735 ) Investment income, before federal income tax 134,487 165,307 155,375 Total all segments 283,516 243,450 194,141 Interest expense (22,428 ) (23,063 ) (26,361 ) General corporate and other expenses (28,396 ) (23,256 ) (23,978 ) Income from continuing operations, before federal income tax $ 232,692 197,131 143,802 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Schedule of Reconciliation of Earnings Per Share | 2015 Income Shares Per Share ($ in thousands, except per share amounts) (Numerator) (Denominator) Amount Basic EPS: Net income available to common stockholders $ 165,861 57,212 $ 2.90 Effect of dilutive securities: Stock compensation plans — 944 Diluted EPS: Net income available to common stockholders $ 165,861 58,156 $ 2.85 2014 Income Shares Per Share ($ in thousands, except per share amounts) (Numerator) (Denominator) Amount Basic EPS: Net income available to common stockholders $ 141,827 56,310 $ 2.52 Effect of dilutive securities: Stock compensation plans — 1,041 Diluted EPS: Net income available to common stockholders $ 141,827 57,351 $ 2.47 2013 Income Shares Per Share ($ in thousands, except per share amounts) (Numerator) (Denominator) Amount Basic EPS: Net income from continuing operations $ 107,415 55,638 $ 1.93 Net loss from discontinued operations (997 ) 55,638 (0.02 ) Net income available to common stockholders $ 106,418 55,638 $ 1.91 Effect of dilutive securities: Stock compensation plans — 1,172 Diluted EPS: Net income from continuing operations $ 107,415 56,810 $ 1.89 Net loss from discontinued operations (997 ) 56,810 (0.02 ) Net income available to common stockholders $ 106,418 56,810 $ 1.87 |
Federal Income Taxes (Tables)
Federal Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Schedule of Reconciliation of Federal Income Tax on Income at the Corporate Rate to the Effective Tax Rate | ($ in thousands) 2015 2014 2013 Tax at statutory rate of 35% $ 81,442 68,996 50,331 Tax-advantaged interest (13,164 ) (12,926 ) (12,718 ) Dividends received deduction (1,817 ) (1,121 ) (1,174 ) Other 370 355 (52 ) Federal income tax expense from continuing operations $ 66,831 55,304 36,387 |
Schedule of Deferred Tax Assets and Liabilities | ($ in thousands) 2015 2014 Deferred tax assets: Net loss reserve discounting $ 74,436 84,502 Net unearned premiums 72,057 66,470 Employee benefits 30,432 33,721 Long-term incentive compensation plans 15,551 13,625 Temporary investment write-downs 5,419 3,939 Net operating loss 1,454 2,136 Alternative minimum tax credits — 7,400 Other 8,132 9,237 Total deferred tax assets 207,481 221,030 Deferred tax liabilities: Deferred policy acquisition costs 72,481 63,242 Unrealized gains on investment securities 24,228 43,289 Other investment-related items, net 5,566 5,088 Accelerated depreciation and amortization 12,510 10,962 Total deferred tax liabilities 114,785 122,581 Net deferred federal income tax asset $ 92,696 98,449 |
Summary of Operating Loss Carryforwards | As of December 31, 2015 , we had federal tax NOL carryforwards of $4.2 million . These NOLs, which are subject to an annual limitation of $1.9 million , will expire between 2029 and 2031 as follows: ($ in thousands) Gross NOL Tax Effected NOL 2029 $ 75 26 2030 3,999 1,400 2031 79 28 Total NOL carryforwards $ 4,153 1,454 |
Retirement Plans (Tables)
Retirement Plans (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule Of Plan Terms In Effect And Revisions Of Retirement Savings Plan | (a) Selective Insurance Retirement Savings Plan (“Retirement Savings Plan”) SICA offers a voluntary defined contribution 401(k) plan, which is available to most of our employees and is a tax-qualified retirement plan subject to the Employee Retirement Income Security Act of 1974 ("ERISA"). Expense recorded for this plan was $14.1 million in 2015 , $13.4 million in 2014 , and $12.2 million in 2013 . |
Schedule of Funded Status Of Retirement Income Plan And Retirement Life Plan | December 31, Pension Plan ($ in thousands) 2015 2014 Change in Benefit Obligation: Benefit obligation, beginning of year $ 322,271 249,422 Service cost 7,215 5,763 Interest cost 13,668 12,776 Actuarial losses (gains) (24,994 ) 61,534 Benefits paid (7,852 ) (7,224 ) Benefit obligation, end of year $ 310,308 322,271 Change in Fair Value of Assets: Fair value of assets, beginning of year $ 253,452 225,817 Actual return on plan assets, net of expenses (7,600 ) 24,649 Contributions by the employer to funded plans 11,700 10,210 Benefits paid (7,852 ) (7,224 ) Fair value of assets, end of year $ 249,700 253,452 Funded status $ (60,608 ) (68,819 ) |
Schedule of Amounts Recognized in Consolidated Balance Sheet | Amounts Recognized in the Consolidated Balance Sheet: Liabilities $ (60,608 ) (68,819 ) Net pension liability, end of year $ (60,608 ) (68,819 ) |
Schedule of Amounts recognized in Accumulated Other than Comprehensive Income | Amounts Recognized in AOCI: Net actuarial loss $ 80,828 89,085 Total $ 80,828 89,085 |
Schedule of Other Information as of December 31 | Other Information as of December 31: Accumulated benefit obligation $ 310,307 318,018 |
Schedule of Components Of Net Periodic Benefit Cost And Other Amounts Recognized In Other Comprehensive Income | Pension Plan ($ in thousands) 2015 2014 2013 Components of Net Periodic Benefit Cost and Other Amounts Recognized in Other Comprehensive Income: Net Periodic Benefit Cost: Service cost $ 7,215 5,763 7,346 Interest cost 13,668 12,776 12,139 Expected return on plan assets (15,969 ) (15,671 ) (15,755 ) Amortization of unrecognized prior service cost — — 21 Amortization of unrecognized actuarial loss 6,831 1,776 4,145 Curtailment expense — — 189 Total net periodic cost $ 11,745 4,644 8,085 Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income: Net actuarial (gain) loss $ (1,425 ) 52,556 (58,001 ) Reversal of amortization of net actuarial loss (6,831 ) (1,776 ) (4,145 ) Reversal of amortization of prior service cost — — (21 ) Curtailment expense — — (189 ) Total recognized in other comprehensive income $ (8,256 ) 50,780 (62,356 ) Total recognized in net periodic benefit cost and other comprehensive income $ 3,489 55,424 (54,271 ) |
Schedule Of Weighted- Average Expense and Liability Assumptions | Pension Plan 2015 2014 2013 Weighted-Average Expense Assumptions for the years ended December 31: Discount rate 4.29 % 5.16 4.66 Expected return on plan assets 6.27 % 6.92 7.40 Rate of compensation increase 4.00 % 4.00 4.00 Weighted-Average Liability Assumptions as of December 31: Discount rate 4.69 % 4.29 Rate of compensation increase 4.00 4.00 |
Schedule of Allocation of Plan Assets | 2015 2014 Target Ranges Actual Percentage Actual Percentage Long duration fixed income 55%-100% 60 % 59 % Global equity 0%-45% 36 % 25 % Global Asset Allocation 1 — % — % 11 % Private equity 1,2 — % 3 % 4 % Cash and short-term investments 1 — % 1 % 1 % Total — % 100 % 100 % |
Schedule of Quantitative Disclosures of our Financial Assets that were Measured at Fair Value | December 31, 2015 Fair Value Measurements Using ($ in thousands) Assets Measured at Fair Value 12/31/15 Quoted Prices in Active Markets for Identical Assets/ Liabilities (Level 1) 1 Significant Other Observable Inputs (Level 2) 1 Significant Unobservable Inputs (Level 3) Description Measured on a recurring basis: AFS fixed income securities: U.S. government and government agencies $ 104,115 42,702 61,413 — Foreign government 15,181 — 15,181 — Obligations of states and political subdivisions 1,359,142 — 1,359,142 — Corporate securities 1,900,182 — 1,900,182 — ABS 244,154 — 244,154 — CMBS 243,592 — 243,592 — RMBS 541,837 — 541,837 — Total AFS fixed income securities 4,408,203 42,702 4,365,501 — AFS equity securities: Common stock 194,789 191,517 — 3,272 Preferred stock 12,262 12,262 — — Total AFS equity securities 207,051 203,779 — 3,272 Total AFS securities 4,615,254 246,481 4,365,501 3,272 Short-term investments 194,819 194,819 — — Total assets $ 4,810,073 441,300 4,365,501 3,272 December 31, 2014 Fair Value Measurements Using ($ in thousands) Assets Measured at Fair Value 12/31/14 Quoted Prices in Active Markets for Identical Assets/ Liabilities (Level 1) 1 Significant Other Observable Inputs (Level 2) 1 Significant Unobservable Inputs (Level 3) Description Measured on a recurring basis: AFS fixed income securities: U.S. government and government agencies $ 124,130 53,199 70,931 — Foreign government 27,831 — 27,831 — Obligations of states and political subdivisions 1,246,264 — 1,246,264 — Corporate securities 1,799,806 — 1,799,806 — ABS 177,224 — 177,224 — CMBS 179,593 — 179,593 — RMBS 511,274 — 511,274 — Total AFS fixed income securities 4,066,122 53,199 4,012,923 — AFS equity securities: Common stock 191,400 188,500 — 2,900 Total AFS equity securities 191,400 188,500 — 2,900 Total AFS securities 4,257,522 241,699 4,012,923 2,900 Short-term investments 131,972 131,972 — — Total assets $ 4,389,494 373,671 4,012,923 2,900 1 There were no transfers of securities between Level 1 and Level 2. |
Schedule of Effect of Significant Unobservable Inputs, Changes in Plan Assets | Investments in Limited Partnerships ($ in thousands) 2015 2014 Fair value, beginning of year $ 10,392 12,159 Total gains (realized and unrealized) included in changes in net assets (410 ) 1,586 Purchases 51 334 Sales — — Issuances — — Settlements (3,575 ) (3,687 ) Transfers into Level 3 — — Transfers out of Level 3 — — Fair value, end of year $ 6,458 10,392 |
Schedule of Expected Benefit Payments | ($ in thousands) Pension Plan Benefits Expected to be Paid in Future Fiscal Years: 2016 $ 9,917 2017 10,958 2018 12,005 2019 13,045 2020 14,092 2021-2025 84,400 |
Retirement Income Plan [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of Quantitative Disclosures of our Financial Assets that were Measured at Fair Value | December 31, 2015 Fair Value Measurements at 12/31/15 Using ($ in thousands) Assets Measured at Fair Value At 12/31/15 Quoted Prices in Active Markets for Identical Assets/ Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Description Long duration fixed income: Global asset allocation fund $ 33,565 33,565 — — Extended duration fixed income 117,297 117,297 — — Total long duration fixed income 150,862 150,862 — — Global equity: Non-U.S. equity 42,603 — 42,603 — U.S. equity 46,840 — 46,840 — Total global equity 89,443 — 89,443 — Private equity (limited partnerships): Private equity 4,852 — — 4,852 Real estate 1,606 — — 1,606 Total private equity 6,458 — — 6,458 Cash and short-term investments: Short-term investments 1,600 1,600 — — Deposit administration contracts 1,418 — 1,418 — Total cash and short-term investments 3,018 1,600 1,418 — Total invested assets $ 249,781 152,462 90,861 6,458 December 31, 2014 Fair Value Measurements at 12/31/14 Using ($ in thousands) Assets Measured at Fair Value At 12/31/14 Quoted Prices in Active Markets for Identical Assets/ Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Description Long duration fixed income: Global asset allocation fund $ 27,782 27,782 — — Extended duration fixed income 120,532 120,532 — — Total long duration fixed income 148,314 148,314 — — Global equity: Non-U.S. equity 16,852 5,438 11,414 — U.S. equity 47,719 47,719 — — Total global equity 64,571 53,157 11,414 — Global asset allocation 27,842 27,842 — — Private equity (limited partnerships): Equity long/short hedge 41 — — 41 Private equity 8,136 — — 8,136 Real estate 2,215 — — 2,215 Total private equity 10,392 — — 10,392 Cash and short-term investments: Short-term investments 1,222 1,222 — — Deposit administration contracts 1,180 — 1,180 — Total cash and short-term investments 2,402 1,222 1,180 — Total invested assets $ 253,521 230,535 12,594 10,392 |
Share-Based Payments (Tables)
Share-Based Payments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Share-Based Compensation Retired Plans | Retired Plans The following plans are closed for the issuance of new awards, although awards outstanding continue in effect according to the terms of the applicable award agreements: December 31, 2015 Types of Share-Based Payments Issued Reserve Shares Awards Outstanding 1 Plan 2005 Omnibus Stock Plan ("2005 Stock Plan") Qualified and nonqualified stock options, SARs, restricted stock, RSUs, phantom stock, stock bonuses, and other awards in such amounts and with such terms and conditions as it determined, subject to the provisions of the 2005 Stock Plan. The maximum exercise period for an option grant under this plan is 10 years from the date of the grant. DEUs are earned during the vesting period on RSU grants. The DEUs are reinvested in the Parent's common stock at fair value on each dividend payment date. 3,182,006 1,225,486 Parent's Stock Compensation Plan for Non-employee Directors ("Directors Stock Compensation Plan") Directors could elect to receive a portion of their annual compensation in shares of the Parent's common stock. 67,978 67,978 1 Awards outstanding under the 2005 Stock Plan consisted of 732,058 RSUs and 493,428 stock options. |
Schedule of Share-Based Compensation ESPP and ASPP Shares Granted | A summary of ESPP and Agent Plan share issuances is as follows: 2015 2014 2013 ESPP Issuances 100,944 106,832 122,951 Agent Plan Issuances 82,142 78,724 86,388 |
Schedule of Share-Based Compensation Shares Available for Issuance | Shares authorized and available for issuance as of December 31, 2015 are as follows: As of December 31, 2015 Authorized Available for Issuance Awards Outstanding Stock Plan 3,500,000 3,138,273 344,105 ESPP 1,500,000 663,154 — Agent Plan 3,000,000 1,937,154 — |
Schedule Of Share-Based Compensation Plan Approval | The following table provides information regarding the approval of these plans: Plan Approvals Stock Plan Approved effective as of May 1, 2014 by stockholders on April 23, 2014. Cash Plan Approved effective April 1, 2005 by stockholders on April 27, 2005. ESPP Approved by stockholders on April 29, 2009 effective July 1, 2009. Agent Plan Approved by stockholders on April 26, 2006. |
Schedule of Types of Share-Based Payments Issued | The types of awards that can be issued under each of these plans are as follows: Plan Types of Share-Based Payments Issued Stock Plan Qualified and nonqualified stock options, stock appreciation rights ("SARs"), restricted stock, restricted stock units ("RSUs"), stock grants, and other awards valued in whole or in part by reference to the Parent's common stock. The maximum exercise period for an option grant under this plan is 10 years from the date of the grant. Dividend equivalent units ("DEUs") are earned during the vesting period on RSU grants. The DEUs are reinvested in the Parent's common stock at fair value on each dividend payment date. The requisite service period for grants to employees under this plan is the lesser of: (i) the stated vested date, which is typically three years from issuance; or (ii) the date the employee becomes eligible to retire. Cash Plan Cash incentive units (“CIUs”). The initial dollar value of each CIU will be adjusted to reflect the percentage increase or decrease in the total shareholder return on the Parent's common stock over a specified performance period. In addition, for certain grants, the number of CIUs granted will be increased or decreased to reflect our performance on specified performance indicators as compared to targeted peer companies. The requisite service period for grants under this plan is the lesser of: (i) the stated vested date, which is typically three years from issuance; or (ii) the date the employee becomes eligible to retire. ESPP Enables to employees to purchase shares of the Parent’s common stock. The purchase price is the lower of: (i) 85% of the closing market price at the time the option is granted; or (ii) 85% of the closing price at the time the option is exercised. Shares are generally issued on June 30 and December 31 of each year. Agent Plan Quarterly offerings to purchase the Parent's common stock at a 10% discount with a one year restricted period during which the shares purchased cannot be sold or transferred. Only our independent retail insurance agencies and wholesale general agencies, and certain eligible persons associated with the agencies, are eligible to participate in this plan. |
Schedule of Summary of Stock Option Transactions under Share Based Payment Plans | Number Weighted Weighted Aggregate Outstanding at December 31, 2014 734,539 $ 19.52 Granted in 2015 — — Exercised in 2015 241,111 22.97 Forfeited or expired in 2015 — — Outstanding at December 31, 2015 493,428 $ 17.84 2.90 $ 7,767 Exercisable at December 31, 2015 493,428 $ 17.84 2.90 $ 7,767 |
Schedule of Summary of Restricted Stock Units Transactions under Share-Based Payment Plans | RSU Transactions A summary of the RSU transactions under our share-based payment plans is as follows: Number Weighted Unvested RSU awards at December 31, 2014 1,077,010 $ 20.18 Granted in 2015 342,409 25.22 Vested in 2015 371,930 18.24 Forfeited in 2015 28,959 21.41 Unvested RSU awards at December 31, 2015 1,018,530 $ 22.55 |
Schedule of Weighted Average Assumptions for Employee Stock Purchase Plan | ESPP 2015 2014 2013 Risk-free interest rate 0.10 % 0.07 0.11 Expected term 6 months 6 months 6 months Dividend yield 2.0 % 2.0 2.4 Expected volatility 20 % 21 19 |
Schedule of Weighted-Average Fair Value of Stock Per Share | The weighted-average fair value of options and stock per share, including RSUs granted for the Parent's stock plans, during 2015 , 2014 , and 2013 is as follows: 2015 2014 2013 RSUs $ 25.22 21.58 21.03 ESPP: Six month option 1.26 1.24 0.97 Discount of grant date market value 4.16 3.87 3.24 Total ESPP 5.42 5.11 4.21 Agent Plan: Discount of grant date market value 2.94 2.42 2.40 The fair value of the CIU liability is remeasured at each reporting period through the settlement date of the awards, which is three years from the date of grant based on an amount expected to be paid. A Monte Carlo simulation is performed to approximate the projected fair value of the CIUs that, in accordance with the Cash Plan, is adjusted to reflect our performance on specified indicators as compared to targeted peer companies. |
Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan | Expense Recognition The following table provides share-based compensation expense in 2015 , 2014 , and 2013 : ($ in millions) 2015 2014 2013 Share-based compensation expense, pre-tax $ 23.8 18.6 19.9 Income tax benefit (8.0 ) (6.2 ) (6.8 ) Share-based compensation expense, after-tax $ 15.8 12.4 13.1 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Commitments For Non-Cancelable Leases | ($ in millions) Capital Leases Operating Leases Total 2016 $ 3.9 6.7 10.6 2017 2.8 5.5 8.3 2018 1.2 4.9 6.1 2019 — 4.1 4.1 2020 — 3.1 3.1 After 2020 — 5.8 5.8 Total minimum payment required $ 7.9 30.1 38.0 |
Statutory Financial Informati51
Statutory Financial Information, Capital Requirements, and Restrictions on Dividends and Transfers of Funds (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Insurance [Abstract] | |
Schedule of Insurance Subsidiaries Statutory Surplus Data | State of Domicile Unassigned Surplus Statutory Surplus Statutory Net Income ($ in millions) 2015 2014 2015 2014 2015 2014 2013 SICA New Jersey $ 366.6 338.8 520.8 493.0 69.6 83.9 53.1 Selective Way Insurance Company ("SWIC") New Jersey 223.6 201.3 272.6 250.3 42.3 37.0 27.5 Selective Insurance Company of South Carolina ("SICSC") Indiana 96.6 83.9 127.9 115.1 15.9 14.0 8.2 Selective Insurance Company of the Southeast ("SICSE") Indiana 70.7 59.3 96.2 84.9 12.1 10.5 6.0 Selective Insurance Company of New York ("SICNY") New York 65.3 54.9 93.0 82.6 12.7 10.3 6.9 Selective Insurance Company of New England ("SICNE") New Jersey 9.2 5.3 39.4 35.4 5.5 4.4 3.1 Selective Auto Insurance Company of New Jersey ("SAICNJ") New Jersey 26.4 18.4 69.2 61.3 10.8 9.1 2.5 MUSIC New Jersey 7.0 (1.7 ) 75.5 66.8 9.5 7.3 5.2 Selective Casualty Insurance Company ("SCIC") New Jersey 17.8 8.2 92.3 82.7 12.1 9.6 6.6 Selective Fire and Casualty Insurance Company ("SFCIC") New Jersey 7.5 3.8 39.4 35.7 5.3 4.2 3.1 Total $ 890.7 772.2 1,426.3 1,307.8 195.8 190.3 122.2 |
Schedule of Insurance Subsidiaries Dividend Paid To Parent | Dividends Twelve Months ended December 31, 2015 ($ in millions) State of Domicile Ordinary Dividends Paid SICA New Jersey $ 26.0 SWIC New Jersey 16.0 SICSC Indiana 3.3 SICSE Indiana 2.0 SICNY New York 2.5 SICNE New Jersey 1.5 SAICNJ New Jersey 2.5 SCIC New Jersey 2.5 SFCIC New Jersey 1.5 Total $ 57.8 |
Schedule of Maximum Payments Insurance Subsidiaries Of Ordinary Dividends | 2016 ($ in millions) State of Domicile Maximum Ordinary Dividends SICA New Jersey $ 61.2 SWIC New Jersey 37.0 SICSC Indiana 15.9 SICSE Indiana 12.1 SICNY New York 9.3 SICNE New Jersey 5.5 SAICNJ New Jersey 10.6 MUSIC New Jersey 9.4 SCIC New Jersey 12.1 SFCIC New Jersey 5.2 Total $ 178.3 |
Quarterly Financial Informati52
Quarterly Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | (unaudited, $ in thousands, First Quarter Second Quarter Third Quarter Fourth Quarter except per share data) 2015 2014 2015 2014 2015 2014 2015 2014 Net premiums earned $ 476,123 456,495 490,309 463,625 507,390 462,639 516,087 469,850 Net investment income earned 26,917 35,534 32,230 36,774 32,061 34,292 30,108 32,108 Net realized gains (losses) 18,883 7,218 (3,420 ) 4,539 308 15,231 (2,600 ) (389 ) Underwriting income (loss) 26,021 (5,015 ) 29,124 10,084 44,831 34,437 49,053 38,637 Net income 39,708 17,974 33,768 29,341 46,996 53,162 45,389 41,350 Other comprehensive income (loss) 3,827 16,678 (35,944 ) 26,483 6,290 (18,887 ) (3,386 ) (29,337 ) Comprehensive income (loss) 43,535 34,652 (2,176 ) 55,824 53,286 34,275 42,003 12,013 Net income per share: Basic 0.70 0.32 0.59 0.52 0.82 0.94 0.79 0.73 Diluted 0.69 0.31 0.58 0.51 0.81 0.93 0.78 0.72 Dividends to stockholders 1 0.14 0.13 0.14 0.13 0.14 0.13 0.15 0.14 Price range of common stock: 2 High 30.10 26.99 29.60 25.42 32.50 25.46 37.91 27.65 Low 25.49 21.38 26.28 22.14 28.10 21.97 30.36 22.01 The addition of all quarters may not agree to annual amounts on the Financial Statements due to rounding. 1 See Note 19. “Statutory Financial Information, Capital Requirements, and Restrictions on Dividends and Transfers of Funds” for a discussion of dividend restrictions. 2 These ranges of high and low prices of the Parent’s common stock, as reported by the NASDAQ Global Select Market, represent actual transactions. Price quotations do not include retail markups, markdowns, and commissions. The range of high and low prices for common stock for the period beginning January 4, 2016 and ending February 12, 2016 was $29.27 to $34.00 . |
Summary of Significant Accoun53
Summary of Significant Accounting Policies (Narrative) (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Depreciation expense | $ 16.4 | $ 12.6 | $ 10.2 | |||
Investment yields before tax assumed in premium deficiency assessment | 2.50% | 3.00% | 3.00% | |||
Deferred policy acquisition costs amortized to expense | $ 399.4 | $ 364.3 | $ 331.8 |
Summary of Significant Accoun54
Summary of Significant Accounting Policies (Property and Equipment) (Details) | 12 Months Ended |
Dec. 31, 2015 | |
Computer hardware [Member] | |
Property, Plant and Equipment, Estimated Useful Lives | 3 |
Furniture and fixtures [Member] | |
Property, Plant and Equipment, Estimated Useful Lives | 10 |
Maximum [Member] | Computer software [Member] | |
Property, Plant and Equipment, Estimated Useful Lives | 5 |
Maximum [Member] | Internally developed software [Member] | |
Property, Plant and Equipment, Estimated Useful Lives | 10 |
Maximum [Member] | Building and improvements [Member] | |
Property, Plant and Equipment, Estimated Useful Lives | 40 |
Minimum [Member] | Computer software [Member] | |
Property, Plant and Equipment, Estimated Useful Lives | 3 |
Minimum [Member] | Internally developed software [Member] | |
Property, Plant and Equipment, Estimated Useful Lives | 5 |
Minimum [Member] | Building and improvements [Member] | |
Property, Plant and Equipment, Estimated Useful Lives | 5 |
Adoption of Accounting Pronou55
Adoption of Accounting Pronouncements(Other Information) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Other assets | $ 78,339 | $ 66,607 | |
Total Assets | 6,904,433 | 6,574,942 | |
Notes payable | 388,192 | 372,689 | |
Liabilities | 5,506,392 | 5,299,356 | |
Total Liabilities and Stockholders' Equity | 6,904,433 | 6,574,942 | |
Interest expense | 22,428 | 23,063 | $ 26,361 |
Other expenses | $ 38,371 | 32,696 | 31,863 |
Restatement Adjustment [Member] | |||
Other assets | 66,607 | ||
Total Assets | 6,574,942 | ||
Notes payable | 372,689 | ||
Liabilities | 5,299,356 | ||
Total Liabilities and Stockholders' Equity | 6,574,942 | ||
Interest expense | 23,063 | 26,361 | |
Other expenses | 32,696 | 31,863 | |
Scenario, Previously Reported [Member] | |||
Other assets | 73,215 | ||
Total Assets | 6,581,550 | ||
Notes payable | 379,297 | ||
Liabilities | 5,305,964 | ||
Total Liabilities and Stockholders' Equity | 6,581,550 | ||
Interest expense | 22,086 | 22,538 | |
Other expenses | $ 33,673 | $ 35,686 |
Statements of Cash Flow (Cash F
Statements of Cash Flow (Cash Flow Supplemental Disclosures) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Interest | $ 21,892 | $ 22,221 | $ 21,465 |
Federal income tax | 39,500 | 22,699 | 20,000 |
Stock split related to equity securities, AFS | 4,239 | 334 | 0 |
Assets acquired under capital lease arrangements | 6,760 | 5,642 | 2,583 |
Non-cash purchase of property and equipment | 0 | 338 | 20 |
AFS Fixed Income Securities [Member] | |||
Tax- free exchange of fixed income securities | 36,792 | 20,781 | 37,965 |
Held-to-maturity Securities [Member] | |||
Tax- free exchange of fixed income securities | 15,257 | 4,289 | $ 15,820 |
National Flood Insurance Program [Member] | |||
Restricted cash | $ 11,900 | $ 6,000 |
Investments (Unrealized Gains o
Investments (Unrealized Gains on Investments) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Net unrealized gains | $ 69,224 | $ 123,683 | $ 79,237 |
Deferred income tax expense | (24,228) | (43,289) | (27,733) |
Net unrealized gains, net of deferred income tax | 44,996 | 80,394 | 51,504 |
(Decrease) increase in net unrealized gains in OCI, net of deferred income tax | (35,398) | 28,890 | (70,824) |
AFS Fixed Income Securities [Member] | |||
Net unrealized gains | 55,689 | 90,336 | 39,559 |
Equity Securities [Member] | |||
Net unrealized gains | 13,235 | 32,389 | 37,421 |
Available-for-sale Securities [Member] | |||
Net unrealized gains | 68,924 | 122,725 | 76,980 |
Total HTM Securities [Member] | |||
Net unrealized gains | $ 300 | $ 958 | $ 2,257 |
Investments (Held-To-Maturity S
Investments (Held-To-Maturity Securities Disclosure) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Amortized Cost | $ 201,054 | $ 317,179 |
Net Unrealized Gains (Losses) | 300 | 958 |
Total HTM fixed income securities carrying value | 201,354 | 318,137 |
Unrecognized Holding Gains | 8,190 | 15,824 |
Unrecognized Holding Losses | 0 | 0 |
Total HTM fixed income securities fair value | $ 209,544 | 333,961 |
Held To Maturity Securities Average Duration | 1 year 6 months | |
Foreign Government [Member] | ||
Amortized Cost | 5,292 | |
Net Unrealized Gains (Losses) | 47 | |
Total HTM fixed income securities carrying value | 5,339 | |
Unrecognized Holding Gains | 55 | |
Unrecognized Holding Losses | 0 | |
Total HTM fixed income securities fair value | 5,394 | |
Obligations of States and Political Subdivisions [Member] | ||
Amortized Cost | $ 175,269 | 285,301 |
Net Unrealized Gains (Losses) | 848 | 2,071 |
Total HTM fixed income securities carrying value | 176,117 | 287,372 |
Unrecognized Holding Gains | 5,763 | 11,760 |
Unrecognized Holding Losses | 0 | 0 |
Total HTM fixed income securities fair value | 181,880 | 299,132 |
Corporate Securities [Member] | ||
Amortized Cost | 20,228 | 18,899 |
Net Unrealized Gains (Losses) | (185) | (273) |
Total HTM fixed income securities carrying value | 20,043 | 18,626 |
Unrecognized Holding Gains | 1,972 | 2,796 |
Unrecognized Holding Losses | 0 | 0 |
Total HTM fixed income securities fair value | 22,015 | 21,422 |
Asset-backed Securities [Member] | ||
Amortized Cost | 1,030 | 2,818 |
Net Unrealized Gains (Losses) | (120) | (455) |
Total HTM fixed income securities carrying value | 910 | 2,363 |
Unrecognized Holding Gains | 118 | 460 |
Unrecognized Holding Losses | 0 | 0 |
Total HTM fixed income securities fair value | 1,028 | 2,823 |
Commercial Mortgage Backed Securities [Member] | ||
Amortized Cost | 4,527 | 4,869 |
Net Unrealized Gains (Losses) | (243) | (432) |
Total HTM fixed income securities carrying value | 4,284 | 4,437 |
Unrecognized Holding Gains | 337 | 753 |
Unrecognized Holding Losses | 0 | 0 |
Total HTM fixed income securities fair value | $ 4,621 | $ 5,190 |
Investments (Available-For-Sale
Investments (Available-For-Sale Securities Disclosure) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Schedule of Available-for-sale Securities [Line Items] | ||
Cost/Amortized Cost | $ 4,546,330 | $ 4,134,797 |
Unrealized Gains | 93,777 | 133,299 |
Unrealized Losses | (24,853) | (10,574) |
Total AFS securities | 4,615,254 | 4,257,522 |
Afs Fixed Maturity Securities [Member] | Commercial Mortgage Backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Government guaranteed agency securities fair value | 4,500 | 13,200 |
Afs Fixed Maturity Securities [Member] | Residential Mortgage Backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Government guaranteed agency securities fair value | 19,700 | 32,400 |
AFS Fixed Income Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost/Amortized Cost | 4,352,514 | 3,975,786 |
Unrealized Gains | 78,504 | 100,578 |
Unrealized Losses | (22,815) | (10,242) |
Total AFS securities | 4,408,203 | 4,066,122 |
AFS Fixed Income Securities [Member] | U.S. Government and Government Agencies [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost/Amortized Cost | 99,485 | 116,666 |
Unrealized Gains | 4,721 | 7,592 |
Unrealized Losses | (91) | (128) |
Total AFS securities | 104,115 | 124,130 |
AFS Fixed Income Securities [Member] | Foreign Government [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost/Amortized Cost | 14,885 | 27,035 |
Unrealized Gains | 298 | 796 |
Unrealized Losses | (2) | 0 |
Total AFS securities | 15,181 | 27,831 |
AFS Fixed Income Securities [Member] | Obligations of States and Political Subdivisions [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost/Amortized Cost | 1,314,779 | 1,208,776 |
Unrealized Gains | 44,523 | 38,217 |
Unrealized Losses | (160) | (729) |
Total AFS securities | 1,359,142 | 1,246,264 |
AFS Fixed Income Securities [Member] | Corporate Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost/Amortized Cost | 1,892,296 | 1,763,427 |
Unrealized Gains | 23,407 | 42,188 |
Unrealized Losses | (15,521) | (5,809) |
Total AFS securities | 1,900,182 | 1,799,806 |
AFS Fixed Income Securities [Member] | Asset-backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost/Amortized Cost | 244,541 | 176,837 |
Unrealized Gains | 531 | 760 |
Unrealized Losses | (918) | (373) |
Total AFS securities | 244,154 | 177,224 |
AFS Fixed Income Securities [Member] | Commercial Mortgage Backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost/Amortized Cost | 245,252 | 177,932 |
Unrealized Gains | 750 | 2,438 |
Unrealized Losses | (2,410) | (777) |
Total AFS securities | 243,592 | 179,593 |
AFS Fixed Income Securities [Member] | Residential Mortgage Backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost/Amortized Cost | 541,276 | 505,113 |
Unrealized Gains | 4,274 | 8,587 |
Unrealized Losses | (3,713) | (2,426) |
Total AFS securities | 541,837 | 511,274 |
Equity Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost/Amortized Cost | 193,816 | 159,011 |
Unrealized Gains | 15,273 | 32,721 |
Unrealized Losses | (2,038) | (332) |
Total AFS securities | 207,051 | 191,400 |
Equity Securities [Member] | Common Stock [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost/Amortized Cost | 181,991 | 159,011 |
Unrealized Gains | 14,796 | 32,721 |
Unrealized Losses | (1,998) | (332) |
Total AFS securities | 194,789 | $ 191,400 |
Equity Securities [Member] | Nonredeemable Preferred Stock [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost/Amortized Cost | 11,825 | |
Unrealized Gains | 477 | |
Unrealized Losses | (40) | |
Total AFS securities | $ 12,262 |
Investments (Number of Securiti
Investments (Number of Securities in an Unrealized Unrecognized Loss Position) (Details) $ in Thousands | Dec. 31, 2015USD ($)Securities | Dec. 31, 2014USD ($)Securities | ||
Held To Maturity Securities Unrecognized Gains Losses Aggregate Continuous Unrealized Loss Position Twelve Months or Longer | $ 116 | $ 439 | ||
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 0 | 196 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 141,580 | 442,058 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (4,900) | (8,170) | [1] | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 1,449,183 | 466,387 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | $ (19,953) | $ (2,408) | [1] | |
Number of securities in an unrealized/unrecognized loss position | Securities | 609 | 350 | ||
Unrealized Unrecognized Loss | $ 24,859 | $ 10,596 | ||
Percentage Decline in Fair Value Percentage | 2.00% | |||
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | [1] | $ 0 | (3) | |
Held To Maturity Securities Unrecognized Gains Losses Aggregate Continuous Unrealized Loss Position Less Than Twelve Months | 0 | 1 | ||
Held-to-maturity Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 805 | 2,235 | ||
Held-to-maturity Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | [1] | (122) | (455) | |
Available For Sale and Held To Maturity Securities Continuous Unrealized Loss Position Less Than Twelve Months Fair Value | 1,449,183 | 466,583 | ||
Available For Sale And Held To Maturity Securities Continuous Unrealized Loss Position Less Than Twelve Months Aggregate Losses | [1] | (19,953) | (2,411) | |
Held To Maturity And Available For Sale Securities Unrecognized Gains Losses Aggregate Continuous Unrealized Loss Position Less Than Twelve Months | 0 | 1 | ||
Available For Sale and Held To Maturity Securities Continuous Unrealized Loss Position Twelve Months Or Longer Fair Value | 142,385 | 444,293 | ||
Available For Sale And Held To Maturity Securities Continuous Unrealized Loss Position Twelve Months Or Longer Aggregate Losses | [1] | (5,022) | (8,625) | |
Held To Maturity And Available For Sale Securities Unrecognized Gains Losses Aggregate Continuous Unrealized Loss Position For Twelve Months Or Longer | $ 116 | $ 439 | ||
Eighty Percent to Ninety-Nine Percent [Member] | ||||
Number of securities in an unrealized/unrecognized loss position | Securities | 606 | 350 | ||
Unrealized Unrecognized Loss | $ 22,971 | $ 10,596 | ||
Sixty Percent to Seventy-Nine Percent [Member] | ||||
Number of securities in an unrealized/unrecognized loss position | Securities | 3 | 0 | ||
Unrealized Unrecognized Loss | $ 1,888 | $ 0 | ||
Forty Percent to Fifty-Nine Percent [Member] | ||||
Number of securities in an unrealized/unrecognized loss position | Securities | 0 | 0 | ||
Unrealized Unrecognized Loss | $ 0 | $ 0 | ||
Twenty Percent to Thirty-Nine Percent [Member] | ||||
Number of securities in an unrealized/unrecognized loss position | Securities | 0 | 0 | ||
Unrealized Unrecognized Loss | $ 0 | $ 0 | ||
Zero Percent to Nineteen Percent [Member] | ||||
Number of securities in an unrealized/unrecognized loss position | Securities | 0 | 0 | ||
Unrealized Unrecognized Loss | $ 0 | $ 0 | ||
Afs Fixed Maturity Securities [Member] | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 141,580 | 442,058 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | [1] | (4,900) | (8,170) | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 1,416,504 | 461,125 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | [1] | (17,915) | (2,072) | |
Equity Securities [Member] | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 0 | 0 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | 0 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 32,679 | 5,262 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (2,038) | (336) | ||
U.S. Government and Government Agencies [Member] | Afs Fixed Maturity Securities [Member] | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 396 | 10,866 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | [1] | (4) | (115) | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 16,006 | 7,567 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | [1] | (87) | (13) | |
Foreign Government [Member] | Afs Fixed Maturity Securities [Member] | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 0 | |||
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | [1] | 0 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 1,067 | |||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | [1] | (2) | ||
Obligations of States and Political Subdivisions [Member] | ||||
Held To Maturity Securities Unrecognized Gains Losses Aggregate Continuous Unrealized Loss Position Twelve Months or Longer | 0 | |||
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 196 | |||
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | [1] | (3) | ||
Held To Maturity Securities Unrecognized Gains Losses Aggregate Continuous Unrealized Loss Position Less Than Twelve Months | 1 | |||
Held-to-maturity Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 0 | |||
Held-to-maturity Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | [1] | 0 | ||
Obligations of States and Political Subdivisions [Member] | Afs Fixed Maturity Securities [Member] | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 0 | 64,018 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | [1] | 0 | (624) | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 28,617 | 47,510 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | [1] | (160) | (105) | |
Corporate Securities [Member] | Afs Fixed Maturity Securities [Member] | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 50,382 | 153,613 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | [1] | (2,850) | (4,075) | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 761,479 | 276,648 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | [1] | (12,671) | (1,734) | |
Asset-backed Securities [Member] | ||||
Held To Maturity Securities Unrecognized Gains Losses Aggregate Continuous Unrealized Loss Position Twelve Months or Longer | 116 | 439 | ||
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 0 | 0 | ||
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | [1] | 0 | 0 | |
Held To Maturity Securities Unrecognized Gains Losses Aggregate Continuous Unrealized Loss Position Less Than Twelve Months | 0 | 0 | ||
Held-to-maturity Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 805 | 2,235 | ||
Held-to-maturity Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | [1] | (122) | (455) | |
Asset-backed Securities [Member] | Afs Fixed Maturity Securities [Member] | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 12,022 | 15,618 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | [1] | (111) | (195) | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 197,477 | 113,202 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | [1] | (807) | (178) | |
Commercial Mortgage Backed Securities [Member] | Afs Fixed Maturity Securities [Member] | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 15,385 | 59,219 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | [1] | (214) | (743) | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 146,944 | 12,799 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | [1] | (2,196) | (34) | |
Residential Mortgage Backed Securities [Member] | Afs Fixed Maturity Securities [Member] | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 63,395 | 138,724 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | [1] | (1,721) | (2,418) | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 264,914 | 3,399 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | [1] | (1,992) | (8) | |
Common Stock [Member] | Equity Securities [Member] | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 0 | 0 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | 0 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 31,148 | 5,262 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (1,998) | $ (336) | ||
Nonredeemable Preferred Stock [Member] | Equity Securities [Member] | ||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 0 | |||
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | |||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 1,531 | |||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | $ (40) | |||
[1] | Gross unrealized losses include non-OTTI unrealized amounts and OTTI losses recognized in AOCI. In addition, this column includes remaining unrealized gain or loss amounts on securities that were transferred to an HTM designation in the first quarter of 2009 for those securities that are in a net unrealized/unrecognized loss position. |
Investments (HTM Fixed Maturity
Investments (HTM Fixed Maturity Securities by Contractual Maturity) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Due in one year or less carrying value | $ 98,601 | |
Due after one year through five years carrying value | 89,231 | |
Due after five years through 10 years carrying value | 13,522 | |
Total HTM fixed income securities carrying value | 201,354 | $ 318,137 |
Due in one year or less fair value | 99,872 | |
Due after one year through five years fair value | 94,358 | |
Due after five years through 10 years fair value | 15,314 | |
Total HTM fixed income securities fair value | $ 209,544 | $ 333,961 |
Investments (AFS Fixed Maturity
Investments (AFS Fixed Maturity Securities by Contractual Maturity) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Schedule of Available-for-sale Securities [Line Items] | ||
Due in one year or less fair value | $ 472,331 | |
Due after one year through five years fair value | 2,135,301 | |
Due after five years through 10 years fair value | 1,733,858 | |
Due after 10 years fair value | 66,713 | |
Total AFS fixed maturity securities | $ 4,408,203 | $ 4,066,122 |
Investments (Other Investment P
Investments (Other Investment Portfolio by Strategy and the Remaining Commitment Amount Associated With Each Strategy) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Carrying Value | $ 77,842 | $ 99,203 |
Alternative Investments [Member] | ||
Carrying Value | 67,834 | 92,968 |
Remaining Commitment | 71,153 | |
Other Investment Portfolio [Member] | ||
Carrying Value | 77,842 | 99,203 |
Remaining Commitment | 74,353 | |
Secondary Private Equity [Member] | Alternative Investments [Member] | ||
Carrying Value | 35,088 | 48,538 |
Remaining Commitment | 30,204 | |
Private Equity [Member] | Alternative Investments [Member] | ||
Carrying Value | 13,246 | 18,533 |
Remaining Commitment | 15,129 | |
Energy Power Generation [Member] | Alternative Investments [Member] | ||
Carrying Value | 19,500 | 25,897 |
Remaining Commitment | 25,820 | |
Other Securities [Member] | ||
Carrying Value | 10,008 | $ 6,235 |
Remaining Commitment | $ 3,200 |
Investments (Aggregated Balance
Investments (Aggregated Balance Sheet Summarized Financial Information for Partnerhips in our Alternative Investment Portfolio) (Details) - Investments Accounted For Under The Equity Method [Member] - USD ($) $ in Millions | Sep. 30, 2015 | Sep. 30, 2014 |
Investments | $ 7,527 | $ 10,096 |
Total assets | 8,515 | 10,695 |
Total liabilities | 316 | 545 |
Partners' capital | $ 8,199 | $ 10,150 |
Investments (Aggregated Income
Investments (Aggregated Income Statement Summarized Financial Information for Partnerhips in our Alternative Investment Portfolio) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Sep. 30, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | |
Schedule of Equity Method Investments [Line Items] | ||||||||||||||
Net investment income earned | $ 30,108 | $ 32,061 | $ 32,230 | $ 26,917 | $ 32,108 | $ 34,292 | $ 36,774 | $ 35,534 | $ 121,316 | $ 138,708 | $ 134,643 | |||
Investments Accounted For Under The Equity Method [Member] | ||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||
Net Investment Income | $ 129,000 | $ 226,000 | $ 406,000 | |||||||||||
Realized gains | 1,187,000 | 581,000 | 913,000 | |||||||||||
Net change in unrealized (depreciation) appreciation | (1,364,000) | 1,098,000 | 382,000 | |||||||||||
Net Income | $ (48,000) | $ 1,905,000 | $ 1,701,000 | |||||||||||
Partnership Interest [Member] | ||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||
Net investment income earned | $ (1,900) | $ 13,600 | $ 15,200 |
Investments (Investments Pledge
Investments (Investments Pledged as Collateral) (Details) $ in Millions | Dec. 31, 2015USD ($) |
Schedule of Available-for-sale Securities [Line Items] | |
Federal Home Loan Bank, Advances, General Debt Obligations, Disclosures, Collateral Pledged | $ 63.7 |
Securities Pledged As Collateral For Reinsurance Obligations | 11.5 |
Assets Held by Insurance Regulators | 24 |
Securities pledged as collateral for reinsurance obligations | 99.2 |
Outstanding borrowing with the Federal Home Loan Bank of Indianapolis | 60 |
U.S. Government and Government Agencies [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Federal Home Loan Bank, Advances, General Debt Obligations, Disclosures, Collateral Pledged | 7.5 |
Securities Pledged As Collateral For Reinsurance Obligations | 0 |
Assets Held by Insurance Regulators | 24 |
Securities pledged as collateral for reinsurance obligations | 31.5 |
Obligations of States and Political Subdivisions [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Federal Home Loan Bank, Advances, General Debt Obligations, Disclosures, Collateral Pledged | 0 |
Securities Pledged As Collateral For Reinsurance Obligations | 5 |
Assets Held by Insurance Regulators | 0 |
Securities pledged as collateral for reinsurance obligations | 5 |
Corporate Securities [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Federal Home Loan Bank, Advances, General Debt Obligations, Disclosures, Collateral Pledged | 0 |
Securities Pledged As Collateral For Reinsurance Obligations | 4.7 |
Assets Held by Insurance Regulators | 0 |
Securities pledged as collateral for reinsurance obligations | 4.7 |
Commercial Mortgage Backed Securities [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Federal Home Loan Bank, Advances, General Debt Obligations, Disclosures, Collateral Pledged | 1.2 |
Securities Pledged As Collateral For Reinsurance Obligations | 0 |
Assets Held by Insurance Regulators | 0 |
Securities pledged as collateral for reinsurance obligations | 1.2 |
Residential Mortgage Backed Securities [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Federal Home Loan Bank, Advances, General Debt Obligations, Disclosures, Collateral Pledged | 55 |
Securities Pledged As Collateral For Reinsurance Obligations | 1.8 |
Assets Held by Insurance Regulators | 0 |
Securities pledged as collateral for reinsurance obligations | $ 56.8 |
Investments (Credit Concentrati
Investments (Credit Concentration Risk) (Details) | Dec. 31, 2015 | Dec. 31, 2014 |
Investments [Abstract] | ||
Maximum exposure to credit concentration risk of the Company's stockholder's equity other than certain U.S. government agencies | 10.00% | 10.00% |
Investments (Net Investment Inc
Investments (Net Investment Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statement [Line Items] | |||||||||||
Net investment income earned | $ 30,108 | $ 32,061 | $ 32,230 | $ 26,917 | $ 32,108 | $ 34,292 | $ 36,774 | $ 35,534 | $ 121,316 | $ 138,708 | $ 134,643 |
Fixed Income Securities [Member] | |||||||||||
Statement [Line Items] | |||||||||||
Net investment income earned | 123,230 | 126,489 | 121,582 | ||||||||
Equity Securities, Dividend Income [Member] | |||||||||||
Statement [Line Items] | |||||||||||
Net investment income earned | 9,161 | 7,449 | 6,140 | ||||||||
Short-term Investments [Member] | |||||||||||
Statement [Line Items] | |||||||||||
Net investment income earned | 112 | 66 | 117 | ||||||||
Other Investment Portfolio [Member] | |||||||||||
Statement [Line Items] | |||||||||||
Net investment income earned | (1,890) | 13,580 | 15,208 | ||||||||
Investment Expenses [Member] | |||||||||||
Statement [Line Items] | |||||||||||
Net investment income earned | $ (9,297) | $ (8,876) | $ (8,404) |
Investments (OTTI by Asset Type
Investments (OTTI by Asset Type) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
OTTI Losses Gross | $ 18,366 | $ 11,104 | $ 5,566 |
OTTI included in OCI | 0 | 0 | (77) |
Total OTTI charges recognized in earnings | 18,366 | 11,104 | 5,643 |
AFS Fixed Income Securities [Member] | |||
OTTI Losses Gross | 16 | ||
OTTI included in OCI | (30) | ||
Total OTTI charges recognized in earnings | 46 | ||
Other Investments [Member] | |||
OTTI Losses Gross | 580 | 1,847 | |
OTTI included in OCI | 0 | 0 | |
Total OTTI charges recognized in earnings | 580 | 1,847 | |
Held-to-maturity Securities [Member] | Asset-backed Securities [Member] | |||
OTTI Losses Gross | (44) | ||
OTTI included in OCI | (47) | ||
Total OTTI charges recognized in earnings | 3 | ||
AFS Fixed Income Securities [Member] | |||
OTTI Losses Gross | 2,189 | 7 | |
OTTI included in OCI | 0 | 0 | |
Total OTTI charges recognized in earnings | 2,189 | 7 | |
AFS Fixed Income Securities [Member] | Corporate Securities [Member] | |||
OTTI Losses Gross | 2,188 | ||
OTTI included in OCI | 0 | ||
Total OTTI charges recognized in earnings | 2,188 | ||
AFS Fixed Income Securities [Member] | Residential Mortgage Backed Securities [Member] | |||
OTTI Losses Gross | 1 | 7 | 16 |
OTTI included in OCI | 0 | 0 | (30) |
Total OTTI charges recognized in earnings | 1 | 7 | 46 |
Available-for-sale Securities [Member] | Equity Securities [Member] | |||
OTTI Losses Gross | 16,177 | 10,517 | 3,747 |
OTTI included in OCI | 0 | 0 | 0 |
Total OTTI charges recognized in earnings | 16,177 | 10,517 | 3,747 |
Held To Maturity Fixed Maturity Securities [Member] | |||
OTTI Losses Gross | (44) | ||
OTTI included in OCI | (47) | ||
Total OTTI charges recognized in earnings | 3 | ||
Common Stock [Member] | Available-for-sale Securities [Member] | Equity Securities [Member] | |||
OTTI Losses Gross | 15,996 | 10,517 | 3,747 |
OTTI included in OCI | 0 | 0 | 0 |
Total OTTI charges recognized in earnings | 15,996 | $ 10,517 | $ 3,747 |
Nonredeemable Preferred Stock [Member] | Available-for-sale Securities [Member] | Equity Securities [Member] | |||
OTTI Losses Gross | 181 | ||
OTTI included in OCI | 0 | ||
Total OTTI charges recognized in earnings | $ 181 |
Investments (Components Of Net
Investments (Components Of Net Realized Gains, Excluding OTTI Charges) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Schedule of Available-for-sale and Held-to-maturity Securities [Line Items] | |||||||||||
HTM fixed income securities gains | $ 5 | $ 2 | $ 195 | ||||||||
HTM fixed income securities losses | (1) | (20) | (95) | ||||||||
Other investment securities gains | 162 | 1 | 0 | ||||||||
Other investment securities losses | (653) | 0 | (1,060) | ||||||||
Net realized investment gains | $ (2,600) | $ 308 | $ (3,420) | $ 18,883 | $ (389) | $ 15,231 | $ 4,539 | $ 7,218 | 31,537 | 37,703 | 26,375 |
Proceeds from sale of available-for-sale securities | 234,100 | 259,000 | 135,900 | ||||||||
Fixed Income Securities [Member] | |||||||||||
Schedule of Available-for-sale and Held-to-maturity Securities [Line Items] | |||||||||||
AFS securities gains | 4,515 | 1,945 | 3,340 | ||||||||
AFS securities losses | (312) | (392) | (373) | ||||||||
Equity Securities [Member] | |||||||||||
Schedule of Available-for-sale and Held-to-maturity Securities [Line Items] | |||||||||||
AFS securities gains | 29,168 | 36,871 | 24,776 | ||||||||
AFS securities losses | $ (1,347) | $ (704) | $ (408) |
Comprehensive Income (Component
Comprehensive Income (Components of Comprehensive Income-Gross and Net of Tax) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Net Income, Gross | $ 232,692,000 | $ 197,131,000 | $ 142,267,000 | ||||||||
Net Income, Tax | 66,831,000 | 55,304,000 | 35,849,000 | ||||||||
Net income | $ 45,389,000 | $ 46,996,000 | $ 33,768,000 | $ 39,708,000 | $ 41,350,000 | $ 53,162,000 | $ 29,341,000 | $ 17,974,000 | 165,861,000 | 141,827,000 | 106,418,000 |
Unrealized holding (losses) gains during the period, Gross | (40,221,000) | 72,940,000 | (83,934,000) | ||||||||
Unrealized holding (losses) gains during the period, Tax | (14,078,000) | 25,529,000 | (29,377,000) | ||||||||
Unrealized holding (losses) gains arising during period | (26,143,000) | 47,411,000 | (54,557,000) | ||||||||
Non-credit portion of other-than-temporary impairment losses recognized in other comprehensive income, Gross | 77,000 | ||||||||||
Non-credit portion of other-than-temporary impairment losses recognized in other comprehensive income, Tax | 27,000 | ||||||||||
Non-credit portion of other-than-temporary impairments recognized in other comprehensive income | 50,000 | ||||||||||
Amount reclassified into net income: HTM securities, Gross | (580,000) | (1,299,000) | (1,577,000) | ||||||||
Amortization Of Net Unrealized Gains Losses On Held-to-Maturity Transferred From Available-for-Sale Tax | (203,000) | (455,000) | (552,000) | ||||||||
Amount reclassified from AOCI, HTM | (377,000) | (844,000) | (1,025,000) | ||||||||
Non-credit OTTI, Gross | 357,000 | 1,669,000 | 14,000 | ||||||||
Non-credit OTTI, Tax | 125,000 | 584,000 | 5,000 | ||||||||
Amounts reclassified into net income: Non-credit other-than-temporary impairment | 232,000 | 1,085,000 | 9,000 | ||||||||
Realized gains on AFS securities, Gross | (14,016,000) | (28,864,000) | (23,540,000) | ||||||||
Realized gains on AFS securities, Tax | (4,906,000) | (10,102,000) | (8,239,000) | ||||||||
Realized gains on available for sale securities | (9,110,000) | (18,762,000) | (15,301,000) | ||||||||
Net unrealized (losses) gains, Gross | (54,460,000) | 44,446,000 | (108,960,000) | ||||||||
Net unrealized (losses) gains, Tax | (19,062,000) | 15,556,000 | (38,136,000) | ||||||||
Total unrealized (losses) gains on investment securities | (35,398,000) | 28,890,000 | (70,824,000) | ||||||||
Net actuarial gain (loss), Gross | 2,438,000 | (54,136,000) | 59,654,000 | ||||||||
Net actuarial gain (loss), Tax | 853,000 | (18,947,000) | 20,879,000 | ||||||||
Net actuarial gain (loss) | 1,585,000 | (35,189,000) | 38,775,000 | ||||||||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, for Net Gain (Loss), before Tax | 7,077,000 | 1,902,000 | 4,374,000 | ||||||||
Amount reclassified into Net Income: Net actuarial loss, Tax | 2,477,000 | 666,000 | 1,531,000 | ||||||||
Amount reclassified into net income: Net actuarial loss | 4,600,000 | 1,236,000 | 2,843,000 | ||||||||
Amount reclassified into Net Income: Prior service cost, Gross | 10,000 | ||||||||||
Amount reclassified into Net Income: Prior service cost, Tax | 4,000 | ||||||||||
Amount reclassified into net income: Prior service cost | 0 | 0 | 6,000 | ||||||||
Other Comprehensive Income Loss Amortization Pension And Other Postretirement Benefit Plans Curtailment Expense Recognized In Net Periodic Benefit Cost Before Tax | 16,000 | ||||||||||
Other Comprehensive Income Loss Amortization Pension And Other Postretirement Benefit Plans Curtailment Expense Recognized In Net Periodic Benefit Cost Tax | 5,000 | ||||||||||
Other Comprehensive Income Loss Amortization Pension And Other Post Retirement Benefit Plans Curtailment Expense Recognized In Net Periodic Benefit Cost Net of Tax | 0 | 0 | 11,000 | ||||||||
Defined pension and other post-retirement benefit plans, Gross | 9,515,000 | (52,234,000) | 64,054,000 | ||||||||
Defined pension and other post-retirement benefit plans, Tax | 3,330,000 | (18,281,000) | 22,419,000 | ||||||||
Total defined benefit pension and post-retirement plans | 6,185,000 | (33,953,000) | 41,635,000 | ||||||||
Other Comprehensive Loss, Gross | (44,945,000) | (7,788,000) | (44,906,000) | ||||||||
Comprehensive Income, Tax | 51,099,000 | 52,579,000 | 20,132,000 | ||||||||
Other Comprehensive Loss, Tax | (15,732,000) | (2,725,000) | (15,717,000) | ||||||||
Other comprehensive loss | (3,386,000) | 6,290,000 | (35,944,000) | 3,827,000 | (29,337,000) | (18,887,000) | 26,483,000 | 16,678,000 | (29,213,000) | (5,063,000) | (29,189,000) |
Comprehensive Income, Before Tax | 187,747,000 | 189,343,000 | 97,361,000 | ||||||||
Comprehensive income | $ 42,003,000 | $ 53,286,000 | $ (2,176,000) | $ 43,535,000 | $ 12,013,000 | $ 34,275,000 | $ 55,824,000 | $ 34,652,000 | 136,648,000 | 136,764,000 | 77,229,000 |
Accumulated Other-than-Temporary Impairment [Member] | |||||||||||
Other comprehensive loss | 232,000 | 1,085,000 | |||||||||
Accumulated Defined Benefit Plans Adjustment [Member] | |||||||||||
Total defined benefit pension and post-retirement plans | 4,600,000 | 1,236,000 | |||||||||
Accumulated other comprehensive income (loss) [Member] | |||||||||||
Other comprehensive loss | $ (29,213,000) | $ (5,063,000) | $ (29,189,000) |
Comprehensive Income (Compone72
Comprehensive Income (Components of Accumulated Other Comprehensive Income) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||
Balance December, | $ 19,788,000 | $ 19,788,000 | |||||||||
Other Comprehensive Income Loss Reclassification Adjustment From AOCI For Non Credit Other Than Temporary Impaired Securities Net Of Tax | (232,000) | $ (1,085,000) | $ (9,000) | ||||||||
Amount reclassified from AOCI, HTM | 377,000 | 844,000 | 1,025,000 | ||||||||
OCI before reclassifications, Defined Benefit Pension and Post Retirement Plans | 1,585,000 | (35,189,000) | 38,775,000 | ||||||||
Amounts reclassified from AOCI,All other | (9,110,000) | (18,762,000) | (15,301,000) | ||||||||
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Adjustment, Net of Tax | 6,185,000 | (33,953,000) | 41,635,000 | ||||||||
Other comprehensive loss | $ (3,386,000) | $ 6,290,000 | $ (35,944,000) | 3,827,000 | $ (29,337,000) | $ (18,887,000) | $ 26,483,000 | $ 16,678,000 | (29,213,000) | (5,063,000) | (29,189,000) |
Balance December, | (9,425,000) | 19,788,000 | (9,425,000) | 19,788,000 | |||||||
Accumulated Other-than-Temporary Impairment [Member] | |||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||
Balance December, | (514,000) | (1,599,000) | (514,000) | (1,599,000) | |||||||
OCI before reclassifications | 0 | 0 | |||||||||
Other comprehensive loss | 232,000 | 1,085,000 | |||||||||
Balance December, | (282,000) | (514,000) | (282,000) | (514,000) | (1,599,000) | ||||||
Accumulated Defined Benefit Plans Adjustment [Member] | |||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||
Balance December, | (60,605,000) | (26,652,000) | (60,605,000) | (26,652,000) | |||||||
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Adjustment, Net of Tax | 4,600,000 | 1,236,000 | |||||||||
Balance December, | (54,420,000) | (60,605,000) | (54,420,000) | (60,605,000) | (26,652,000) | ||||||
Accumulated other comprehensive income (loss) [Member] | |||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||
Balance December, | 19,788,000 | 24,851,000 | 19,788,000 | 24,851,000 | |||||||
OCI before reclassifications | (24,558,000) | 12,222,000 | |||||||||
Amount reclassified from AOCI | (4,655,000) | (17,285,000) | |||||||||
Other comprehensive loss | (29,213,000) | (5,063,000) | (29,189,000) | ||||||||
Balance December, | (9,425,000) | 19,788,000 | (9,425,000) | 19,788,000 | 24,851,000 | ||||||
Held-to-maturity Securities [Member] | Accumulated Net Unrealized Investment Gain (Loss) [Member] | |||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||
Balance December, | 623,000 | 1,467,000 | 623,000 | 1,467,000 | |||||||
OCI before reclassifications | 0 | 0 | |||||||||
Other comprehensive loss | (377,000) | (844,000) | |||||||||
Balance December, | 246,000 | 623,000 | 246,000 | 623,000 | 1,467,000 | ||||||
Available-for-sale Securities [Member] | |||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||
Balance December, | 80,284,000 | 51,635,000 | 80,284,000 | 51,635,000 | |||||||
OCI before reclassifications | (26,143,000) | 47,411,000 | |||||||||
Other comprehensive loss | (35,253,000) | 28,649,000 | |||||||||
Balance December, | 45,031,000 | 80,284,000 | 45,031,000 | 80,284,000 | 51,635,000 | ||||||
Investments [Member] | |||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||
Balance December, | $ 80,393,000 | $ 51,503,000 | 80,393,000 | 51,503,000 | |||||||
OCI before reclassifications | (26,143,000) | 47,411,000 | |||||||||
Amount reclassified from AOCI | (9,255,000) | (18,521,000) | |||||||||
Other comprehensive loss | (35,398,000) | 28,890,000 | |||||||||
Balance December, | $ 44,995,000 | $ 80,393,000 | $ 44,995,000 | $ 80,393,000 | $ 51,503,000 |
Comprehensive Income (Reclassif
Comprehensive Income (Reclassification out of AOCI) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Other Comprehensive Income Loss Reclassification Adjustment From AOCI For Non Credit Other Than Temporary Impaired Securities, Before Tax | $ 357,000 | $ 1,669,000 | $ 14,000 |
Amortization of non-credit OTTI losses on HTM securities, tax | (125,000) | (584,000) | (5,000) |
Amortization on net unrealized gains on HTM securities | (580,000) | (1,299,000) | (1,577,000) |
Total HTM Related, Tax | 203,000 | 455,000 | 552,000 |
Amount reclassified from AOCI, HTM | (377,000) | (844,000) | (1,025,000) |
Total realized gains and losses on AFS disposals, gross | (14,016,000) | (28,864,000) | (23,540,000) |
Realized gains and losses on AFS disposals, Tax | 4,906,000 | 10,102,000 | 8,239,000 |
Realized gains on available for sale securities | (9,110,000) | (18,762,000) | (15,301,000) |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, for Net Gain (Loss), before Tax | 7,077,000 | 1,902,000 | 4,374,000 |
Total defined benefit pension and post-retirement life, Gross | 9,515,000 | (52,234,000) | 64,054,000 |
Total defined benefit pension and post-retirement life,Tax | (3,330,000) | 18,281,000 | (22,419,000) |
Total defined benefit pension and post-retirement plans | 6,185,000 | (33,953,000) | $ 41,635,000 |
Policy acquisition costs [Member] | |||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, for Net Gain (Loss), before Tax | 5,539,000 | 1,571,000 | |
Loss and loss expense incurred [Member] | |||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, for Net Gain (Loss), before Tax | 1,538,000 | 331,000 | |
Net Realized Investment Gains [Member] | |||
Unrealized gains and losses on HTM disposals | 308,000 | 157,000 | |
Total realized gains and losses on AFS disposals, gross | (14,016,000) | (28,864,000) | |
Net Income Financial Statement Line Item [Member] | |||
Amount reclassified from AOCI | (4,655,000) | (17,285,000) | |
Amount reclassified from AOCI, HTM | (377,000) | (844,000) | |
Realized gains on available for sale securities | (9,110,000) | (18,762,000) | |
Net Income Financial Statement Line Item [Member] | Accumulated Defined Benefit Plans Adjustment [Member] | |||
Total defined benefit pension and post-retirement plans | 4,600,000 | 1,236,000 | |
Net Income Financial Statement Line Item [Member] | Other-than-Temporary Impairment [Member] | |||
Amount reclassified from AOCI | 232,000 | 1,085,000 | |
Total Federal Income Tax Expense [Member] | |||
Total HTM Related, Tax | (203,000) | (455,000) | |
Realized gains and losses on AFS disposals, Tax | 4,906,000 | 10,102,000 | |
Total defined benefit pension and post-retirement life,Tax | (2,477,000) | (666,000) | |
Total Federal Income Tax Expense [Member] | Other-than-Temporary Impairment [Member] | |||
Amortization of non-credit OTTI losses on HTM securities, tax | 125,000 | 584,000 | |
Income From Continuing Operations Before Federal Income Tax [Member] | |||
Other Comprehensive Income Loss Reclassification Adjustment From AOCI For Non Credit Other Than Temporary Impaired Securities, Before Tax | 357,000 | 1,669,000 | |
Amortization on net unrealized gains on HTM securities | (580,000) | (1,299,000) | |
Total realized gains and losses on AFS disposals, gross | (14,016,000) | (28,864,000) | |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, for Net Gain (Loss), before Tax | 7,077,000 | 1,902,000 | |
Total defined benefit pension and post-retirement life, Gross | 7,077,000 | 1,902,000 | |
Net Investment Income Earned [Member] | |||
Amortization on net unrealized gains on HTM securities | (888,000) | (1,456,000) | |
Non Credit OTTI On Disposed Securities [Member] | Net Realized Investment Gains [Member] | |||
Other Comprehensive Income Loss Reclassification Adjustment From AOCI For Non Credit Other Than Temporary Impaired Securities, Before Tax | $ 357,000 | $ 1,669,000 |
Fair Value Measurements (Carryi
Fair Value Measurements (Carrying Value and Estimated Fair Value of Financial Instruments) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Held-to-maturity Securities | $ 201,354 | $ 318,137 |
Available-for-sale Securities, Debt Securities | 4,408,203 | 4,066,122 |
Equity securities, AFS | 207,051 | 191,400 |
Short-term investments | 194,819 | 131,972 |
Notes payable | 388,192 | 372,689 |
Carrying Amount [Member] | ||
Held-to-maturity Securities | 201,354 | 318,137 |
Available-for-sale Securities, Debt Securities | 4,408,203 | 4,066,122 |
Equity securities, AFS | 207,051 | 191,400 |
Short-term investments | 194,819 | 131,972 |
Notes payable | 388,192 | 372,689 |
Carrying Amount [Member] | Zero Point Sixty Three Percent Borrowing From Federal Home Loan Bank Due July 22, 2016 [Member] | ||
Notes payable | 15,000 | 0 |
Carrying Amount [Member] | One Point Twenty Five Percent Borrowing From Federal Home Loan Bank [Member] | ||
Notes payable | 45,000 | 45,000 |
Carrying Amount [Member] | Seven Point Twenty Five Percent Senior Notes [Member] | ||
Notes payable | 49,898 | 49,896 |
Carrying Amount [Member] | Six Point Seventy Percent Senior Notes [Member] | ||
Notes payable | 99,415 | 99,401 |
Carrying Amount [Member] | Five Point Eight Hundred Seventy Five [Member] | ||
Notes payable | 185,000 | 185,000 |
Carrying Amount [Member] | Long Term Debt Excluding Issuance Costs [Member] | ||
Notes payable | 394,313 | 379,297 |
Carrying Amount [Member] | Unamortized Debt Issuance Costs [Member] | ||
Notes payable | (6,121) | (6,608) |
Fair Value [Member] | ||
Held-to-maturity Securities | 209,544 | 333,961 |
Available-for-sale Securities, Debt Securities | 4,408,203 | 4,066,122 |
Equity securities, AFS | 207,051 | 191,400 |
Short-term investments | 194,819 | 131,972 |
Notes payable | 419,826 | 404,270 |
Fair Value [Member] | Zero Point Sixty Three Percent Borrowing From Federal Home Loan Bank Due July 22, 2016 [Member] | ||
Notes payable | 14,977 | 0 |
Fair Value [Member] | One Point Twenty Five Percent Borrowing From Federal Home Loan Bank [Member] | ||
Notes payable | 45,083 | 45,244 |
Fair Value [Member] | Seven Point Twenty Five Percent Senior Notes [Member] | ||
Notes payable | 56,929 | 59,181 |
Fair Value [Member] | Six Point Seventy Percent Senior Notes [Member] | ||
Notes payable | 110,363 | 114,845 |
Fair Value [Member] | Five Point Eight Hundred Seventy Five [Member] | ||
Notes payable | $ 192,474 | $ 185,000 |
Fair Value Measurements (Quanti
Fair Value Measurements (Quantitative Disclosures at Fair Value Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale Securities, Debt Securities | $ 4,408,203 | $ 4,066,122 | |
Equity securities, AFS | 207,051 | 191,400 | |
Total AFS securities | 4,615,254 | 4,257,522 | |
Short-term investments | 194,819 | 131,972 | |
Fair Value [Member] | Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale Securities, Debt Securities | 4,408,203 | 4,066,122 | |
Equity securities, AFS | 207,051 | 191,400 | |
Total AFS securities | 4,615,254 | 4,257,522 | |
Short-term investments | 194,819 | 131,972 | |
Total Assets | 4,810,073 | 4,389,494 | |
Fair Value [Member] | U.S. Government and Government Agencies and Authorities [Member] | Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale Securities, Debt Securities | 104,115 | 124,130 | |
Fair Value [Member] | Foreign Government [Member] | Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale Securities, Debt Securities | 15,181 | 27,831 | |
Fair Value [Member] | Obligations of States and Political Subdivisions [Member] | Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale Securities, Debt Securities | 1,359,142 | 1,246,264 | |
Fair Value [Member] | Corporate Securities [Member] | Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale Securities, Debt Securities | 1,900,182 | 1,799,806 | |
Fair Value [Member] | Asset-backed Securities [Member] | Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale Securities, Debt Securities | 244,154 | 177,224 | |
Fair Value [Member] | Commercial Mortgage-backed Securities (CMBS) [Member] | Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale Securities, Debt Securities | 243,592 | 179,593 | |
Fair Value [Member] | Residential Mortgage Backed Securities (RMBS) [Member] | Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale Securities, Debt Securities | 541,837 | 511,274 | |
Fair Value [Member] | Common Stock [Member] | Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity securities, AFS | 194,789 | 191,400 | |
Fair Value [Member] | Nonredeemable Preferred Stock [Member] | Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity securities, AFS | 12,262 | ||
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale Securities, Debt Securities | [1] | 42,702 | 53,199 |
Equity securities, AFS | 203,779 | 188,500 | |
Total AFS securities | [1] | 246,481 | 241,699 |
Short-term investments | [1] | 194,819 | 131,972 |
Total Assets | [1] | 441,300 | 373,671 |
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | U.S. Government and Government Agencies and Authorities [Member] | Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale Securities, Debt Securities | [1] | 42,702 | 53,199 |
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Foreign Government [Member] | Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale Securities, Debt Securities | [1] | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Obligations of States and Political Subdivisions [Member] | Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale Securities, Debt Securities | [1] | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Corporate Securities [Member] | Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale Securities, Debt Securities | [1] | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Asset-backed Securities [Member] | Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale Securities, Debt Securities | [1] | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Commercial Mortgage-backed Securities (CMBS) [Member] | Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale Securities, Debt Securities | [1] | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Residential Mortgage Backed Securities (RMBS) [Member] | Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale Securities, Debt Securities | [1] | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Common Stock [Member] | Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity securities, AFS | 191,517 | 188,500 | |
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Nonredeemable Preferred Stock [Member] | Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity securities, AFS | 12,262 | ||
Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale Securities, Debt Securities | [1] | 4,365,501 | 4,012,923 |
Equity securities, AFS | 0 | 0 | |
Total AFS securities | [1] | 4,365,501 | 4,012,923 |
Short-term investments | [1] | 0 | 0 |
Total Assets | [1] | 4,365,501 | 4,012,923 |
Significant Other Observable Inputs (Level 2) [Member] | U.S. Government and Government Agencies and Authorities [Member] | Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale Securities, Debt Securities | [1] | 61,413 | 70,931 |
Significant Other Observable Inputs (Level 2) [Member] | Foreign Government [Member] | Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale Securities, Debt Securities | [1] | 15,181 | 27,831 |
Significant Other Observable Inputs (Level 2) [Member] | Obligations of States and Political Subdivisions [Member] | Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale Securities, Debt Securities | [1] | 1,359,142 | 1,246,264 |
Significant Other Observable Inputs (Level 2) [Member] | Corporate Securities [Member] | Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale Securities, Debt Securities | [1] | 1,900,182 | 1,799,806 |
Significant Other Observable Inputs (Level 2) [Member] | Asset-backed Securities [Member] | Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale Securities, Debt Securities | [1] | 244,154 | 177,224 |
Significant Other Observable Inputs (Level 2) [Member] | Commercial Mortgage-backed Securities (CMBS) [Member] | Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale Securities, Debt Securities | [1] | 243,592 | 179,593 |
Significant Other Observable Inputs (Level 2) [Member] | Residential Mortgage Backed Securities (RMBS) [Member] | Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale Securities, Debt Securities | [1] | 541,837 | 511,274 |
Significant Other Observable Inputs (Level 2) [Member] | Common Stock [Member] | Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity securities, AFS | 0 | 0 | |
Significant Other Observable Inputs (Level 2) [Member] | Nonredeemable Preferred Stock [Member] | Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity securities, AFS | 0 | ||
Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale Securities, Debt Securities | 0 | 0 | |
Equity securities, AFS | 3,272 | 2,900 | |
Total AFS securities | 3,272 | 2,900 | |
Short-term investments | 0 | 0 | |
Total Assets | 3,272 | 2,900 | |
Significant Unobservable Inputs (Level 3) [Member] | U.S. Government and Government Agencies and Authorities [Member] | Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale Securities, Debt Securities | 0 | 0 | |
Significant Unobservable Inputs (Level 3) [Member] | Foreign Government [Member] | Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale Securities, Debt Securities | 0 | 0 | |
Significant Unobservable Inputs (Level 3) [Member] | Obligations of States and Political Subdivisions [Member] | Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale Securities, Debt Securities | 0 | 0 | |
Significant Unobservable Inputs (Level 3) [Member] | Corporate Securities [Member] | Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale Securities, Debt Securities | 0 | 0 | |
Significant Unobservable Inputs (Level 3) [Member] | Asset-backed Securities [Member] | Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale Securities, Debt Securities | 0 | 0 | |
Significant Unobservable Inputs (Level 3) [Member] | Commercial Mortgage-backed Securities (CMBS) [Member] | Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale Securities, Debt Securities | 0 | 0 | |
Significant Unobservable Inputs (Level 3) [Member] | Residential Mortgage Backed Securities (RMBS) [Member] | Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale Securities, Debt Securities | 0 | 0 | |
Significant Unobservable Inputs (Level 3) [Member] | Common Stock [Member] | Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity securities, AFS | 3,272 | $ 2,900 | |
Significant Unobservable Inputs (Level 3) [Member] | Nonredeemable Preferred Stock [Member] | Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity securities, AFS | $ 0 | ||
[1] | There were no transfers of securities between Level 1 and Level 2. |
Fair Value Measurements (Change
Fair Value Measurements (Changes in Fair Value of Securities Using Level 3 Inputs) (Details) - Equity Securities [Member] $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Fair Value, Beginning Balance | $ 2,900 |
Total net (losses) gains for the period included in OCI | 0 |
Total net (losses) gains for the period included in net income | 0 |
Purchases | 487 |
Sales | (115) |
Issuances | 0 |
Settlements | 0 |
Transfers into Level 3 | 0 |
Transfers out of Level 3 | 0 |
Fair Value, Ending Balance | $ 3,272 |
Fair Value Measurements (Quan77
Fair Value Measurements (Quantitative Information of Our Financial Assets and Liabilities That Were Disclosed at Fair Value) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held-to-maturity Securities | $ 201,354 | $ 318,137 |
Notes payable | 388,192 | 372,689 |
Fair Value [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held-to-maturity Securities | 209,544 | 333,961 |
Notes payable | 419,826 | 404,270 |
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held-to-maturity Securities | 0 | 0 |
Notes payable | 192,474 | 185,000 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held-to-maturity Securities | 206,208 | 333,961 |
Notes payable | 227,352 | 219,270 |
Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held-to-maturity Securities | 3,336 | 0 |
Notes payable | 0 | 0 |
Foreign Government [Member] | Fair Value [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held-to-maturity Securities | 5,394 | |
Foreign Government [Member] | Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held-to-maturity Securities | 0 | |
Foreign Government [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held-to-maturity Securities | 5,394 | |
Foreign Government [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held-to-maturity Securities | 0 | |
Obligations of States and Political Subdivisions [Member] | Fair Value [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held-to-maturity Securities | 181,880 | 299,132 |
Obligations of States and Political Subdivisions [Member] | Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held-to-maturity Securities | 0 | 0 |
Obligations of States and Political Subdivisions [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held-to-maturity Securities | 181,880 | 299,132 |
Obligations of States and Political Subdivisions [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held-to-maturity Securities | 0 | 0 |
Corporate Securities [Member] | Fair Value [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held-to-maturity Securities | 22,015 | 21,422 |
Corporate Securities [Member] | Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held-to-maturity Securities | 0 | 0 |
Corporate Securities [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held-to-maturity Securities | 18,679 | 21,422 |
Corporate Securities [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held-to-maturity Securities | 3,336 | 0 |
Asset-backed Securities [Member] | Fair Value [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held-to-maturity Securities | 1,028 | 2,823 |
Asset-backed Securities [Member] | Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held-to-maturity Securities | 0 | 0 |
Asset-backed Securities [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held-to-maturity Securities | 1,028 | 2,823 |
Asset-backed Securities [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held-to-maturity Securities | 0 | 0 |
Commercial Mortgage-backed Securities (CMBS) [Member] | Fair Value [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held-to-maturity Securities | 4,621 | 5,190 |
Commercial Mortgage-backed Securities (CMBS) [Member] | Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held-to-maturity Securities | 0 | 0 |
Commercial Mortgage-backed Securities (CMBS) [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held-to-maturity Securities | 4,621 | 5,190 |
Commercial Mortgage-backed Securities (CMBS) [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Held-to-maturity Securities | 0 | 0 |
Zero Point Sixty Three Percent Borrowing From Federal Home Loan Bank Due July 22, 2016 [Member] | Fair Value [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notes payable | 14,977 | |
Zero Point Sixty Three Percent Borrowing From Federal Home Loan Bank Due July 22, 2016 [Member] | Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notes payable | 0 | |
Zero Point Sixty Three Percent Borrowing From Federal Home Loan Bank Due July 22, 2016 [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notes payable | 14,977 | |
Zero Point Sixty Three Percent Borrowing From Federal Home Loan Bank Due July 22, 2016 [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notes payable | 0 | |
One Point Twenty Five Percent Borrowing From Federal Home Loan Bank [Member] | Fair Value [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notes payable | 45,083 | 45,244 |
One Point Twenty Five Percent Borrowing From Federal Home Loan Bank [Member] | Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notes payable | 0 | 0 |
One Point Twenty Five Percent Borrowing From Federal Home Loan Bank [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notes payable | 45,083 | 45,244 |
One Point Twenty Five Percent Borrowing From Federal Home Loan Bank [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notes payable | 0 | 0 |
Seven Point Twenty Five Percent Senior Notes [Member] | Fair Value [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notes payable | 56,929 | 59,181 |
Seven Point Twenty Five Percent Senior Notes [Member] | Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notes payable | 0 | 0 |
Seven Point Twenty Five Percent Senior Notes [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notes payable | 56,929 | 59,181 |
Seven Point Twenty Five Percent Senior Notes [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notes payable | 0 | 0 |
Six Point Seventy Percent Senior Notes [Member] | Fair Value [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notes payable | 110,363 | 114,845 |
Six Point Seventy Percent Senior Notes [Member] | Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notes payable | 0 | 0 |
Six Point Seventy Percent Senior Notes [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notes payable | 110,363 | 114,845 |
Six Point Seventy Percent Senior Notes [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notes payable | 0 | 0 |
Five Point Eight Hundred Seventy Five [Member] | Fair Value [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notes payable | 192,474 | 185,000 |
Five Point Eight Hundred Seventy Five [Member] | Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notes payable | 192,474 | 185,000 |
Five Point Eight Hundred Seventy Five [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notes payable | 0 | 0 |
Five Point Eight Hundred Seventy Five [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notes payable | $ 0 | $ 0 |
Reinsurance (Total Reinsurance
Reinsurance (Total Reinsurance Balances Segregated By Reinsurer) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
Terrorism Risk Insurance Program Companys Estimated Deductible | $ 280,000 | ||||
Terrorism Risk Insurance Program Reimbursed Percentage Maximum | 84.00% | ||||
Terrorism Risk Insurance Program Annual Cap | $ 100,000,000 | ||||
Terrorism Risk Insurance Program Insurer Retainer | 16.00% | ||||
Annual Terrorism Risk Insurance Program Federal Share Reduction | 1.00% | ||||
Terrorism Risk Insurance Program Reimbursed Percentage Minimum | 80.00% | ||||
Allowance For Reinsurance Recoverable | $ 10,122 | $ 11,037 | $ 9,542 | $ 8,706 | |
Total reinsurance recoverables | 561,968 | 581,548 | |||
Total prepaid reinsurance premiums | 140,889 | 146,993 | |||
Net unsecured reinsurance balances | 702,857 | 728,541 | |||
Less: collateral | (106,449) | (114,843) | |||
National Flood Insurance Program [Member] | |||||
Net unsecured reinsurance balances | [1] | $ 164,130 | $ 172,547 | ||
% of Net Unsecured Reinsurance | [1] | 24.00% | 24.00% | ||
NJ Unsatisfied Claim Judgment Fund [Member] | |||||
Net unsecured reinsurance balances | [1] | $ 71,884 | $ 76,342 | ||
% of Net Unsecured Reinsurance | [1] | 10.00% | 11.00% | ||
Other Federal And State Pools [Member] | |||||
Net unsecured reinsurance balances | [1] | $ 3,136 | $ 2,557 | ||
% of Net Unsecured Reinsurance | [1] | 0.00% | 0.00% | ||
Total Federal And State Pools [Member] | |||||
Net unsecured reinsurance balances | [1] | $ 239,150 | $ 251,446 | ||
% of Net Unsecured Reinsurance | [1] | 34.00% | 35.00% | ||
Remaining Unsecured Reinsurance [Member] | |||||
Net unsecured reinsurance balances | $ 463,707 | $ 477,095 | |||
% of Net Unsecured Reinsurance | 66.00% | 65.00% | |||
Munich Re Group [Member] | |||||
Net unsecured reinsurance balances | $ 112,889 | $ 110,270 | |||
% of Net Unsecured Reinsurance | 16.00% | 15.00% | |||
Hanover Ruckversicherungs AG [Member] | |||||
Net unsecured reinsurance balances | $ 99,535 | $ 100,959 | |||
% of Net Unsecured Reinsurance | 14.00% | 14.00% | |||
AXIS Reinsurance Company [Member] | |||||
Net unsecured reinsurance balances | $ 53,374 | $ 51,014 | |||
% of Net Unsecured Reinsurance | 8.00% | 7.00% | |||
Swiss Re Group [Member] | |||||
Net unsecured reinsurance balances | $ 51,340 | $ 55,026 | |||
% of Net Unsecured Reinsurance | 7.00% | 8.00% | |||
Partner Reinsurance Company Of The US [Member] | |||||
Net unsecured reinsurance balances | $ 20,748 | $ 25,424 | |||
% of Net Unsecured Reinsurance | 3.00% | 3.00% | |||
All Other Reinsurers [Member] | |||||
Net unsecured reinsurance balances | $ 125,821 | $ 134,402 | |||
% of Net Unsecured Reinsurance | 18.00% | 18.00% | |||
Remaining Unsecured Reinsurance, Net of Collateral [Member] | |||||
Net unsecured reinsurance balances | $ 357,258 | $ 362,252 | |||
Allowance for Reinsurance Recoverable [Member] | |||||
Allowance For Reinsurance Recoverable | $ 5,700 | $ 6,900 | |||
[1] | Considered to have minimal risk of default. |
Reinsurance (List of direct, as
Reinsurance (List of direct, assumed and ceded Reinsurance Amounts) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Premiums Written: | |||||||||||
Direct | $ 2,403,519 | $ 2,228,270 | $ 2,133,793 | ||||||||
Assumed | 23,848 | 26,306 | 43,650 | ||||||||
Ceded premiums written | (357,463) | (369,296) | (367,284) | ||||||||
Net | 2,069,904 | 1,885,280 | 1,810,159 | ||||||||
Premiums Earned: | |||||||||||
Direct | 2,330,267 | 2,183,258 | 2,048,530 | ||||||||
Assumed | 23,209 | 34,653 | 44,464 | ||||||||
Ceded premiums earned | (363,567) | (365,302) | (356,922) | ||||||||
Total Net Premiums Earned | $ 516,087 | $ 507,390 | $ 490,309 | $ 476,123 | $ 469,850 | $ 462,639 | $ 463,625 | $ 456,495 | 1,989,909 | 1,852,609 | 1,736,072 |
Losses and loss expenes incurred: | |||||||||||
Direct | 1,274,872 | 1,314,864 | 1,370,293 | ||||||||
Assumed | 16,996 | 26,187 | 32,678 | ||||||||
Ceded losses and loss expenses incurred | (143,327) | (183,550) | (281,233) | ||||||||
Net | $ 1,148,541 | $ 1,157,501 | $ 1,121,738 |
Reinsurance (Ceded Premiums and
Reinsurance (Ceded Premiums and Losses Related to Flood Operations) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Percentage of unpaid NFIP claims ceded by federal government | 100.00% | ||
Ceded premiums written | $ (357,463) | $ (369,296) | $ (367,284) |
Ceded premiums earned | (363,567) | (365,302) | (356,922) |
Ceded losses and loss expenses incurred | (143,327) | (183,550) | (281,233) |
National Flood Insurance Program [Member] | |||
Ceded premiums written | (228,907) | (237,718) | (236,309) |
Ceded premiums earned | (233,940) | (234,224) | (228,650) |
Ceded losses and loss expenses incurred | $ (62,078) | $ (57,323) | $ (183,142) |
Reserve of Losses and Loss Expe
Reserve of Losses and Loss Expenses (Rollforward of Reserves for Losses and Loss Expenses) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Gross reserves for losses and loss expenses, at beginning of year | $ 3,477,870 | $ 3,349,770 | $ 4,068,941 |
Less: reinsurance recoverable on unpaid losses and loss expenses, at beginning of year | 571,978 | 540,839 | 1,409,755 |
Net reserves for losses and loss expenses, at beginning of year | 2,905,892 | 2,808,931 | 2,659,186 |
Incurred losses and loss expense for claims occurring in the current year | 1,217,550 | 1,216,770 | 1,147,263 |
Incurred losses and loss expenses for claims occurring in the prior years | (69,009) | (59,269) | (25,525) |
Total incurred losses and loss expenses | 1,148,541 | 1,157,501 | 1,121,738 |
Paid losses and loss expenses for claims occurring in current year | 446,550 | 468,478 | 399,559 |
Paid losses and loss expenses for claims occurring in prior years | 641,174 | 592,062 | 572,434 |
Total paid losses and loss expenses | 1,087,724 | 1,060,540 | 971,993 |
Net reserves for losses and loss expenses, at end of year | 2,966,709 | 2,905,892 | 2,808,931 |
Add: reinsurance recoverable on unpaid losses and loss expenses, at end of year | 551,019 | 571,978 | 540,839 |
Gross reserves for losses and loss expenses, at end of year | 3,517,728 | 3,477,870 | 3,349,770 |
Increase of net loss and loss expense reserves | 60,800 | 97,000 | 149,700 |
Anticipated recoveries for salvage and subrogation claims | $ 62,100 | $ 65,100 | $ 61,000 |
Reserve for Losses and Loss E82
Reserve for Losses and Loss Expenses (Reserve Loss Development) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Liability for Unpaid Claims and Claims Adjustment Expense, Claims Paid, Prior Years | $ 641,174 | $ 592,062 | $ 572,434 |
Favorable or adverse loss development | (69,009) | (59,269) | (25,525) |
Property Development | 11,000 | ||
Favorable or unfavorable loss development [Member] | |||
Liability for Unpaid Claims and Claims Adjustment Expense, Claims Paid, Prior Years | 69,000 | 59,300 | 25,500 |
Favorable or adverse loss development | (69,000) | (59,300) | (25,500) |
Property Development | 2,000 | 11,100 | |
Casualty Development | 67,000 | 48,200 | 14,500 |
Favorable or unfavorable loss development [Member] | General Liability [Member] | |||
Favorable or adverse loss development | (51,000) | (43,900) | (20,000) |
Favorable or unfavorable loss development [Member] | Commercial Automobile [Member] | |||
Favorable or adverse loss development | 2,400 | (4,100) | (4,500) |
Favorable or unfavorable loss development [Member] | Workers' Compensation [Member] | |||
Favorable or adverse loss development | (37,000) | 0 | 23,500 |
Favorable or unfavorable loss development [Member] | Business Owners' Policies [Member] | |||
Favorable or adverse loss development | 2,200 | 1,900 | (9,500) |
Favorable or unfavorable loss development [Member] | Commercial Property [Member] | |||
Favorable or adverse loss development | (3,000) | (2,100) | (7,500) |
Favorable or unfavorable loss development [Member] | Homeowners [Member] | |||
Favorable or adverse loss development | 1,500 | (4,000) | (2,500) |
Favorable or unfavorable loss development [Member] | Personal Automobile [Member] | |||
Favorable or adverse loss development | 400 | (10,800) | (3,000) |
Favorable or unfavorable loss development [Member] | Excess And Surplus Operations [Member] | |||
Favorable or adverse loss development | $ 15,500 | $ 3,700 | $ (2,000) |
Reserve for Losses and Loss E83
Reserve for Losses and Loss Expenses (Exposure to Environmental Claims) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Losses and Loss expense reserves, Gross | $ 30,411 | $ 30,653 | $ 32,764 | $ 35,575 |
Liability for Asbestos and Environmental Claims, Net | 23,161 | 22,994 | 25,167 | 27,769 |
Asbestos [Member] | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Losses and Loss expense reserves, Gross | 8,024 | 8,751 | 8,897 | 9,170 |
Liability for Asbestos and Environmental Claims, Net | 6,793 | $ 7,314 | $ 7,518 | $ 7,791 |
Landfill Sites Related Claims [Member] | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Losses and Loss expense reserves, Gross | 13,100 | |||
Liability for Asbestos and Environmental Claims, Net | 8,300 | |||
Leaking Underground Storage Tanks Claims [Member] | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Losses and Loss expense reserves, Gross | 9,300 | |||
Liability for Asbestos and Environmental Claims, Net | $ 8,100 |
Reserve for Losses and Loss E84
Reserve for Losses and Loss Expenses (Roll Forward of Gross and Net Asbestos and Net Environmental Incurred Losses and Loss Expenses and Related Reserves) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Liability for Claims and Claims Adjustment Expense [Line Items] | |||
Salvage and Subrogation Recoveries, Value | $ 62,100 | $ 65,100 | $ 61,000 |
Reserves for losses and loss expenses at beginning of year, gross | 30,653 | 32,764 | 35,575 |
Incurred losses and loss expenses, gross | (2,968) | (167) | (347) |
Less: losses and loss expenses paid, gross | (3,210) | (2,278) | (3,158) |
Reserves for losses and loss expenses at the end of year, gross | 30,411 | 30,653 | 32,764 |
Reserves for losses and loss expenses at beginning of year, net | 22,994 | 25,167 | 27,769 |
Incurred losses and loss expenses, net | (3,320) | 0 | (68) |
Less: losses and loss expenses paid, net | (3,153) | (2,173) | (2,670) |
Reserves for losses and loss expenses at the end of year, net | 23,161 | 22,994 | 25,167 |
Asbestos [Member] | |||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||
Reserves for losses and loss expenses at beginning of year, gross | 8,751 | 8,897 | 9,170 |
Incurred losses and loss expenses, gross | (428) | (60) | 0 |
Less: losses and loss expenses paid, gross | (299) | (206) | (273) |
Reserves for losses and loss expenses at the end of year, gross | 8,024 | 8,751 | 8,897 |
Reserves for losses and loss expenses at beginning of year, net | 7,314 | 7,518 | 7,791 |
Incurred losses and loss expenses, net | (77) | 0 | 0 |
Less: losses and loss expenses paid, net | (444) | (204) | (273) |
Reserves for losses and loss expenses at the end of year, net | 6,793 | 7,314 | 7,518 |
Enviromental [Member] | |||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||
Reserves for losses and loss expenses at beginning of year, gross | 21,902 | 23,867 | 26,405 |
Incurred losses and loss expenses, gross | (3,396) | (107) | (347) |
Less: losses and loss expenses paid, gross | (2,911) | (2,072) | (2,885) |
Reserves for losses and loss expenses at the end of year, gross | 22,387 | 21,902 | 23,867 |
Reserves for losses and loss expenses at beginning of year, net | 15,680 | 17,649 | 19,978 |
Incurred losses and loss expenses, net | (3,397) | 0 | (68) |
Less: losses and loss expenses paid, net | (2,709) | (1,969) | (2,397) |
Reserves for losses and loss expenses at the end of year, net | $ 16,368 | $ 15,680 | $ 17,649 |
Indebtedness (Narrative) (Detai
Indebtedness (Narrative) (Details) $ in Millions | 3 Months Ended | ||||||
Mar. 31, 2013USD ($) | Dec. 31, 2005USD ($) | Dec. 31, 2015USD ($) | Jan. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2011USD ($) | Dec. 31, 2004USD ($) | |
Aggregate investment in FHLBI | $ 2.8 | $ (2.9) | |||||
Borrowing threshold of FHLBI | 20 | ||||||
FLHBI Borrowing | $ 60 | ||||||
Maximum FHLBI borrowing percentage permitted by line of credit | 10.00% | ||||||
Five Point Eight Hundred Seventy Five Percent Senior Notes Due 2043 [Member] | |||||||
Aggregate principal amount of notes | $ 185 | ||||||
Bond proceeds to Insurance Subsidiaries as capital | 57.1 | ||||||
Redemption Of Seven Point Fifty Percent Junior Notes [Member] | |||||||
Aggregate principal amount of notes | 100 | ||||||
Write off of Deferred Debt Issuance Cost | $ 3.3 | ||||||
One Point Twenty Five Percent Borrowing From Federal Home Loan Bank due Dec. 16, 2016 [Member] | |||||||
FLHBI Borrowing | $ 45 | ||||||
Unpaid principal amount interest rate | 1.25% | ||||||
Zero Point Sixty Three Percent Borrowing From Federal Home Loan Bank Due July 22, 2016 [Member] | |||||||
FLHBI Borrowing | $ 15 | ||||||
Unpaid principal amount interest rate | 0.63% | ||||||
Six Point Seventy Percent Senior Notes due 2035 [Member] | |||||||
Aggregate principal amount of notes | $ 100 | ||||||
Discount for notes issued | $ 0.7 | ||||||
Effective yield | 6.754% | ||||||
Acceleration of principal | $ 10 | ||||||
Net proceeds from the issuance | $ 50 | ||||||
Seven Point Twenty Five Percent Senior Notes due 2034 [Member] | |||||||
Aggregate principal amount of notes | $ 50 | ||||||
Discount for notes issued | $ 0.1 | ||||||
Effective yield | 7.27% | ||||||
Bond proceeds to Insurance Subsidiaries as capital | $ 25 | ||||||
Acceleration of principal | 10 | ||||||
Line of Credit expires Dec.1, 2020 [Member] | |||||||
Acceleration of principal | 20 | ||||||
Line of credit borrowing capacity | 30 | ||||||
Line of credit, maximum borrowing capacity | $ 50 |
Indebtedness (Covenants in the
Indebtedness (Covenants in the Line of Credit) (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Debt Disclosure [Abstract] | ||||
Consolidated net worth, required | $ 960,000,000 | |||
Statutory surplus, required | $ 750,000,000 | |||
Debt-to-capitalization ratio, required | [1] | 35.00% | ||
Consolidated net worth, actual | $ 1,398,041,000 | $ 1,275,586,000 | $ 1,153,928,000 | |
Statutory surplus, actual | $ 1,426,300,000 | $ 1,307,800,000 | ||
Debt-to-capitalization ratio, actual | [1] | 22.10% | ||
[1] | Calculated in accordance with Line of Credit agreement. |
Segment Information (Narrative)
Segment Information (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Segment Reporting [Abstract] | ||
Number of Operating Segments | 4 | |
Goodwill balance for our Standard Commercial Lines reporting unit | $ 7,849 | $ 7,849 |
Percentage of net premiums written related to insurance policies written in New Jersey | 21.00% |
Segment Information (Revenue Fr
Segment Information (Revenue From Continuing Operations by Segment) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenue from External Customer [Line Items] | |||||||||||
Net premiums earned | $ 516,087 | $ 507,390 | $ 490,309 | $ 476,123 | $ 469,850 | $ 462,639 | $ 463,625 | $ 456,495 | $ 1,989,909 | $ 1,852,609 | $ 1,736,072 |
Other income | 7,456 | 16,945 | 12,294 | ||||||||
Net investment income | $ 30,108 | $ 32,061 | $ 32,230 | $ 26,917 | $ 32,108 | $ 34,292 | $ 36,774 | $ 35,534 | 121,316 | 138,708 | 134,643 |
Net realized gains | 13,171 | 26,599 | 20,732 | ||||||||
Total investment revenues | 134,487 | 165,307 | 155,375 | ||||||||
Total all segments | 2,131,852 | 2,034,514 | 1,903,648 | ||||||||
Total revenues | 2,131,852 | 2,034,861 | 1,903,741 | ||||||||
Miscellaneous Income [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Other income | 7,456 | 16,598 | 12,201 | ||||||||
Other Income [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Other income | 0 | 347 | 93 | ||||||||
Standard Commercial Lines [Member] | Commercial Automobile [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net premiums earned | 358,909 | 333,310 | 310,994 | ||||||||
Standard Commercial Lines [Member] | Workers' Compensation [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net premiums earned | 290,075 | 274,585 | 267,612 | ||||||||
Standard Commercial Lines [Member] | General Liability [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net premiums earned | 483,291 | 444,938 | 405,322 | ||||||||
Standard Commercial Lines [Member] | Commercial Property [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net premiums earned | 269,022 | 244,792 | 224,412 | ||||||||
Standard Commercial Lines [Member] | Business Owners' Policies [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net premiums earned | 93,428 | 85,788 | 77,097 | ||||||||
Standard Commercial Lines [Member] | Bonds Segment [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net premiums earned | 20,350 | 19,288 | 19,000 | ||||||||
Standard Commercial Lines [Member] | Other Commercial [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net premiums earned | 14,367 | 13,011 | 12,182 | ||||||||
Standard Commercial Lines [Member] | Miscellaneous Income [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net premiums earned | 6,343 | 14,747 | 10,253 | ||||||||
Standard Commercial Lines [Member] | Total standard Commercial Lines [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net premiums earned | 1,535,785 | 1,430,459 | 1,326,872 | ||||||||
Property and Casualty, Personal Insurance Product Line [Member] | Miscellaneous Income [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net premiums earned | 1,113 | 1,834 | 1,948 | ||||||||
Property and Casualty, Personal Insurance Product Line [Member] | Personal Automobile [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net premiums earned | 146,784 | 151,317 | 152,005 | ||||||||
Property and Casualty, Personal Insurance Product Line [Member] | Homeowners [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net premiums earned | 134,382 | 134,273 | 127,991 | ||||||||
Property and Casualty, Personal Insurance Product Line [Member] | Other Personal [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net premiums earned | 6,968 | 11,157 | 14,336 | ||||||||
Property and Casualty, Personal Insurance Product Line [Member] | Property and Casualty, Personal Insurance Product Line [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net premiums earned | 289,247 | 298,581 | 296,280 | ||||||||
E&S Lines [Member] | Commercial Automobile [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net premiums earned | 7,795 | 5,436 | 4,306 | ||||||||
E&S Lines [Member] | General Liability [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net premiums earned | 121,802 | 96,142 | 88,761 | ||||||||
E&S Lines [Member] | Commercial Property [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net premiums earned | 42,736 | 38,572 | 32,054 | ||||||||
E&S Lines [Member] | Miscellaneous Income [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Other income | 0 | 17 | 0 | ||||||||
E&S Lines [Member] | Total standard Commercial Lines [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net premiums earned | $ 172,333 | $ 140,167 | $ 125,121 |
Segment Information (Income Fro
Segment Information (Income From Continuing Operations, Before Federal Income Tax) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Underwriting gain (loss), before federal income tax | $ 49,053 | $ 44,831 | $ 29,124 | $ 26,021 | $ 38,637 | $ 34,437 | $ 10,084 | $ (5,015) | |||
Net investment income | $ 30,108 | $ 32,061 | $ 32,230 | $ 26,917 | $ 32,108 | $ 34,292 | $ 36,774 | $ 35,534 | $ 121,316 | $ 138,708 | $ 134,643 |
Net realized investment gains | 13,171 | 26,599 | 20,732 | ||||||||
Total investment revenues | 134,487 | 165,307 | 155,375 | ||||||||
Tax on investment income | 32,090 | 43,811 | 40,489 | ||||||||
Total investment income, after federal income tax | 102,397 | 121,496 | 114,886 | ||||||||
Standard Commercial Lines [Member] | |||||||||||
Underwriting gain (loss), before federal income tax | $ 164,496 | $ 61,221 | $ 33,856 | ||||||||
GAAP Combined Ratio | 89.20% | 95.70% | 97.40% | ||||||||
Statutory Combined Ratio | 89.20% | 95.50% | 97.10% | ||||||||
Standard Personal Lines [Member] | |||||||||||
Underwriting gain (loss), before federal income tax | $ 1,336 | $ 16,536 | $ 8,645 | ||||||||
GAAP Combined Ratio | 99.50% | 94.40% | 97.10% | ||||||||
Statutory Combined Ratio | 99.90% | 94.50% | 96.90% | ||||||||
Excess And Surplus Operations [Member] | |||||||||||
Underwriting gain (loss), before federal income tax | $ (16,803) | $ 386 | $ (3,735) | ||||||||
GAAP Combined Ratio | 109.80% | 99.70% | 103.00% | ||||||||
Statutory Combined Ratio | 108.40% | 99.20% | 102.90% |
Segment Information (Reconcilia
Segment Information (Reconciliation of Segment Results to Income from Continuing Operations, before Federal Income Tax (Details)) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||
Underwriting gain (loss), before federal income tax | $ 49,053 | $ 44,831 | $ 29,124 | $ 26,021 | $ 38,637 | $ 34,437 | $ 10,084 | $ (5,015) | |||
Total investment revenues | $ 134,487 | $ 165,307 | $ 155,375 | ||||||||
Interest expense | (22,428) | (23,063) | (26,361) | ||||||||
General corporate and other expenses | (28,396) | (23,256) | (23,978) | ||||||||
Income from continuing operations, before federal income tax | 232,692 | 197,131 | 143,802 | ||||||||
Standard Commercial Lines [Member] | |||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||
Underwriting gain (loss), before federal income tax | 164,496 | 61,221 | 33,856 | ||||||||
Standard Personal Lines [Member] | |||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||
Underwriting gain (loss), before federal income tax | 1,336 | 16,536 | 8,645 | ||||||||
Excess And Surplus Operations [Member] | |||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||
Underwriting gain (loss), before federal income tax | (16,803) | 386 | (3,735) | ||||||||
Operating Segments [Member] | |||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||
Total all segments | $ 283,516 | $ 243,450 | $ 194,141 |
Earnings Per Share (Reconciliat
Earnings Per Share (Reconciliation of EPS) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Basic EPS: [Abstract] | |||||||||||
Net income from continuing operations | $ 165,861 | $ 141,827 | $ 107,415 | ||||||||
Loss on disposal of discontinued operations | 0 | 0 | (997) | ||||||||
Net income | $ 45,389 | $ 46,996 | $ 33,768 | $ 39,708 | $ 41,350 | $ 53,162 | $ 29,341 | $ 17,974 | $ 165,861 | $ 141,827 | $ 106,418 |
Net income, basic shares | 57,212 | 56,310 | 55,638 | ||||||||
Basic net income from continuing operations | $ 2.90 | $ 2.52 | $ 1.93 | ||||||||
Basic net loss from discontinued operations | 0 | 0 | (0.02) | ||||||||
Basic net income | $ 0.79 | $ 0.82 | $ 0.59 | $ 0.70 | $ 0.73 | $ 0.94 | $ 0.52 | $ 0.32 | $ 2.90 | $ 2.52 | $ 1.91 |
Effect of dilutive securities: [Abstract] | |||||||||||
Stock compensation plans, shares | $ 944 | $ 1,041 | $ 1,172 | ||||||||
Earnings Per Share, Diluted [Abstract] | |||||||||||
Net income from continuing operations | 165,861 | 141,827 | 107,415 | ||||||||
Loss on disposal of discontinued operations | 0 | 0 | (997) | ||||||||
Net income | $ 45,389 | $ 46,996 | $ 33,768 | $ 39,708 | $ 41,350 | $ 53,162 | $ 29,341 | $ 17,974 | $ 165,861 | $ 141,827 | $ 106,418 |
Shares net income, Diluted | 58,156 | 57,351 | 56,810 | ||||||||
Diluted net income from continuing operations | $ 2.85 | $ 2.47 | $ 1.89 | ||||||||
Diluted net loss from discontinued operations | 0 | 0 | (0.02) | ||||||||
Diluted net income | $ 0.78 | $ 0.81 | $ 0.58 | $ 0.69 | $ 0.72 | $ 0.93 | $ 0.51 | $ 0.31 | $ 2.85 | $ 2.47 | $ 1.87 |
Federal Income Taxes (Reconcili
Federal Income Taxes (Reconciliation of Federal Income Tax on Income at the Corporate Rate to the Effective Tax Rate) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Tax at statutory rate of 35% | $ 81,442 | $ 68,996 | $ 50,331 |
Tax-advantaged interest | (13,164) | (12,926) | (12,718) |
Dividends received deduction | (1,817) | (1,121) | (1,174) |
Other | 370 | 355 | (52) |
Total federal income tax expense | $ 66,831 | $ 55,304 | $ 36,387 |
Federal Income Taxes (Deferred
Federal Income Taxes (Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Net loss reserve discounting | $ 74,436 | $ 84,502 | |
Net unearned premiums | 72,057 | 66,470 | |
Employee benefits | 30,432 | 33,721 | |
Long-term incentive compensation plans | 15,551 | 13,625 | |
Temporary investment write-downs | 5,419 | 3,939 | |
Net operating loss | 1,454 | 2,136 | |
Alternative minimum tax credits | 0 | 7,400 | |
Other | 8,132 | 9,237 | |
Total deferred tax assets | 207,481 | 221,030 | |
Deferred policy acquisition costs | 72,481 | 63,242 | |
Unrealized gains on investment securities | 24,228 | 43,289 | |
Other investment-related items, net | 5,566 | 5,088 | |
Accelerated depreciation and amortization | 12,510 | 10,962 | |
Total deferred tax liabilities | 114,785 | 122,581 | |
Net deferred federal income tax asset | 92,696 | 98,449 | |
Tax benefits related to compensation expense deductions for share-based compensation awards | $ 22,000 | $ 20,200 | $ 19,200 |
Federal Income Tax (Federal Tax
Federal Income Tax (Federal Tax Net Operating Loss Carryforwards) (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Operating Loss Carryforwards [Line Items] | |
Annual Limitation Of Net Operating Loss Carryforwards | $ 1,900 |
Operating Loss Carryforwards | 4,153 |
Operating Loss Carryforwards Tax Effect | 1,454 |
Tax Year 2029 [Member] | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards | 75 |
Operating Loss Carryforwards Tax Effect | 26 |
Tax Year 2030 [Member] | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards | 3,999 |
Operating Loss Carryforwards Tax Effect | 1,400 |
Tax Year 2031 [Member] | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards | 79 |
Operating Loss Carryforwards Tax Effect | $ 28 |
Retirement Plans (Retirement Sa
Retirement Plans (Retirement Savings Plan) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Deferred Compensation Arrangement With Individual, Employer Discretionary Contributions | $ 0 | $ 0 | $ 0 |
Retirement Savings Plan [Member] | |||
Defined Benefit Plan, Contributions by Employer | $ 14.1 | $ 13.4 | $ 12.2 |
Retirement Plans (Deferred Comp
Retirement Plans (Deferred Compensation Plan) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2013 | |
Deferred Compensation Plan Contributions By Employer | $ 0.2 | $ 0.2 |
Retirement Plans (Funded Status
Retirement Plans (Funded Status of Retirement Income Plan and Retirement Life Plan) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Net actuarial gain (loss), Gross | $ (2,438) | $ 54,136 | $ (59,654) |
Retirement Income Plan [Member] | |||
Net actuarial gain (loss), Gross | (1,425) | 52,556 | (58,001) |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation, beginning of year | 322,271 | 249,422 | |
Service cost | 7,215 | 5,763 | 7,346 |
Interest cost | 13,668 | 12,776 | 12,139 |
Actuarial losses (gains) | (24,994) | 61,534 | |
Benefits Paid Benefit Obligation | (7,852) | (7,224) | |
Defined Benefit Plan, Curtailments | 0 | 0 | |
Benefit obligation, end of year | 310,308 | 322,271 | 249,422 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of assets, beginning of year | 253,452 | 225,817 | |
Actual return on plan assets, net of expenses | (7,600) | 24,649 | |
Contributions by the employer to funded plans | 11,700 | 10,210 | |
Benefits paid fair value | (7,852) | (7,224) | |
Fair value of assets, end of year | 249,700 | 253,452 | $ 225,817 |
Funded status | (60,608) | (68,819) | |
Defined Benefit Plan, Amounts Recognized in Balance Sheet [Abstract] | |||
Liabilities | (60,608) | (68,819) | |
Net pension liability, end of year | (60,608) | (68,819) | |
Pension and Other Postretirement Benefit Plans, Accumulated Other Comprehensive Income (Loss), before Tax [Abstract] | |||
Net actuarial loss | 80,828 | 89,085 | |
Total | $ 80,828 | $ 89,085 | |
Weighted-Average Liability Asumptions | |||
Discount rate | 4.69% | 4.29% | |
Rate of compensation increase | 4.00% | 4.00% | |
Accumulated benefit obligation | $ 310,307 | $ 318,018 | |
Retirement Life Plan [Member] | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation, beginning of year | 6,400 | ||
Benefit obligation, end of year | $ 6,000 | $ 6,400 |
Retirement Plans (Components of
Retirement Plans (Components of Net Periodic Benefit Cost and Other Amounts Recognized in Other Comprehensive Income) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Curtailment expense | $ 0 | $ 0 | $ 16 |
Net actuarial (gain) loss | (2,438) | 54,136 | (59,654) |
Reversal of amortization of net actuarial loss | (7,077) | (1,902) | (4,374) |
Reversal of amortization of prior service cost | (10) | ||
Retirement Income Plan [Member] | |||
Defined Benefit Plan, Benefit Obligation | 310,308 | 322,271 | 249,422 |
Service cost | 7,215 | 5,763 | 7,346 |
Interest cost | 13,668 | 12,776 | 12,139 |
Expected return on plan assets | (15,969) | (15,671) | (15,755) |
Amortization of unrecognized prior service cost | 0 | 0 | 21 |
Amortization of unrecognized actuarial loss | 6,831 | 1,776 | 4,145 |
Curtailment expense | 0 | 0 | 189 |
Total net periodic cost | 11,745 | 4,644 | 8,085 |
Net actuarial (gain) loss | (1,425) | 52,556 | (58,001) |
Reversal of amortization of net actuarial loss | (6,831) | (1,776) | (4,145) |
Reversal of amortization of prior service cost | 0 | 0 | (21) |
Defined Benefit Plan Recognized Net Gain Loss Reclassification From Other ComprhensiveIncome Due To Curtailments | 0 | 0 | (189) |
Total recognized in other comprehensive income | (8,256) | 50,780 | (62,356) |
Total recognized in net periodic benefit cost and OCI | 3,489 | 55,424 | (54,271) |
Estimated net actuarial loss that will be amortized from AOCI into net periodic benefit cost | 5,900 | ||
Retirement Life Plan [Member] | |||
Defined Benefit Plan, Benefit Obligation | 6,000 | 6,400 | |
Total net periodic cost | 300 | 400 | 400 |
Supplemental Employee Retirement Plan [Member] | |||
Defined Benefit Plan, Benefit Obligation | 8,500 | 8,800 | |
Total net periodic cost | $ 800 | $ 600 | $ 500 |
Retirement Plans (Weighted-Aver
Retirement Plans (Weighted-Average Expense Assumptions) (Details) | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Expected return on plan assets | 6.37% | |||
Retirement Income Plan [Member] | ||||
Discount rate | 4.29% | 5.16% | 4.66% | |
Expected return on plan assets | 6.27% | 6.92% | 7.40% | |
Rate of compensation increase | 4.00% | 4.00% | 4.00% | |
Discount rate used to value the liability | 4.69% | 4.29% | ||
Pension Plan Service Cost [Member] | ||||
Discount rate | [1] | 4.52% | ||
Pension Plan Interest Cost [Member] | ||||
Discount rate | [1] | 4.02% | ||
[1] | Our latest measurement date was December 31, 2015 and we increased our expected return on plan assets to 6.37%, reflecting the current interest rate environment. When determining the most appropriate discount rate to be used in the valuation, we consider, among other factors, our expected payout patterns of the plans' obligations as well as our investment strategy and we ultimately select the rate that we believe best represents our estimate of the inherent interest rate at which our pension and post-retirement life benefits can be effectively settled. Effective January 1, 2016, the approach used to calculate the service and interest components of net periodic benefit cost for benefit plans was changed to provide a more precise measurement of service and interest costs. Historically, we calculated these service and interest components utilizing a single weighted-average discount rate derived from the yield curve used to measure the benefit obligation at the beginning of the period. Going forward, we have elected to utilize an approach that discounts the individual expected cash flows using the applicable spot rates derived from the yield curve over the projected cash flow period. We will account for this change prospectively as a change in accounting estimate. The weighted average discount rates used to determine 2016 service and interest costs are 4.52% and 4.02%, respectively. |
Retirement Plans (Plan's Alloca
Retirement Plans (Plan's Allocated Target and Ranges and Actual Weighted Average Asset Allocation by Investment Categories) (Details) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Actual percentage | 100.00% | 100.00% |
Range minimum | 0.00% | |
Range maximum | 0.00% | |
Maximum percentage of equity security value of total plans portfolio value that is allowed | 8.00% | |
Maximum percentage of any corporation outstanding shares that is allowed for retirement income plan equity portfolio | 5.00% | |
Extended Duration Fixed Maturity [Member] | ||
Actual percentage | 60.00% | 59.00% |
Range minimum | 55.00% | |
Range maximum | 100.00% | |
Global Equity [Member] | ||
Actual percentage | 36.00% | 25.00% |
Range minimum | 0.00% | |
Range maximum | 45.00% | |
Global Asset Allocation [Member] | ||
Actual percentage | 0.00% | 11.00% |
Range minimum | 0.00% | |
Range maximum | 0.00% | |
Private Equity Funds [Member] | ||
Actual percentage | 3.00% | 4.00% |
Range minimum | 0.00% | |
Range maximum | 0.00% | |
Cash And Short Term Investments [Member] | ||
Actual percentage | 1.00% | 1.00% |
Range minimum | 0.00% | |
Range maximum | 0.00% |
Retirement Plans (Quantitative
Retirement Plans (Quantitative Disclosures of Retirement Income Plan's Invested Assets that are Measured at Fair Value on a Recurring Basis) (Details) - Retirement Income Plan [Member] - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | $ 249,700 | $ 253,452 | $ 225,817 |
Fair Value [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 249,781 | 253,521 | |
Fair Value [Member] | Alternative Investments [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 6,458 | 10,392 | |
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 152,462 | 230,535 | |
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Alternative Investments [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 0 | 0 | |
Significant Other Observable Inputs (Level 2) [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 90,861 | 12,594 | |
Significant Other Observable Inputs (Level 2) [Member] | Alternative Investments [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 0 | 0 | |
Significant Unobservable Inputs (Level 3) [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 6,458 | 10,392 | |
Significant Unobservable Inputs (Level 3) [Member] | Alternative Investments [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 6,458 | 10,392 | $ 12,159 |
Significant Unobservable Inputs (Level 3) [Member] | Alternative Investments [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 6,458 | 10,392 | |
Global Asset Allocation Fund [Member] | Fair Value [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 33,565 | 27,782 | |
Global Asset Allocation Fund [Member] | Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 33,565 | 27,782 | |
Global Asset Allocation Fund [Member] | Significant Other Observable Inputs (Level 2) [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 0 | 0 | |
Global Asset Allocation Fund [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 0 | 0 | |
Extended Duration Fixed Income [Member] | Fair Value [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 117,297 | 120,532 | |
Extended Duration Fixed Income [Member] | Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 117,297 | 120,532 | |
Extended Duration Fixed Income [Member] | Significant Other Observable Inputs (Level 2) [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 0 | 0 | |
Extended Duration Fixed Income [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 0 | 0 | |
Total Long Duration Fixed Income [Member] | Fair Value [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 150,862 | 148,314 | |
Total Long Duration Fixed Income [Member] | Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 150,862 | 148,314 | |
Total Long Duration Fixed Income [Member] | Significant Other Observable Inputs (Level 2) [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 0 | 0 | |
Total Long Duration Fixed Income [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 0 | 0 | |
International equity [Member] | Fair Value [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 42,603 | 16,852 | |
International equity [Member] | Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 0 | 5,438 | |
International equity [Member] | Significant Other Observable Inputs (Level 2) [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 42,603 | 11,414 | |
International equity [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 0 | 0 | |
US Global Equity [Member] | Fair Value [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 46,840 | 47,719 | |
US Global Equity [Member] | Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 0 | 47,719 | |
US Global Equity [Member] | Significant Other Observable Inputs (Level 2) [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 46,840 | 0 | |
US Global Equity [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 0 | 0 | |
Global Equity [Member] | Fair Value [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 89,443 | 64,571 | |
Global Equity [Member] | Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 0 | 53,157 | |
Global Equity [Member] | Significant Other Observable Inputs (Level 2) [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 89,443 | 11,414 | |
Global Equity [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 0 | 0 | |
Global Asset Allocation [Member] | Fair Value [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 27,842 | ||
Global Asset Allocation [Member] | Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 27,842 | ||
Global Asset Allocation [Member] | Significant Other Observable Inputs (Level 2) [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 0 | ||
Global Asset Allocation [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 0 | ||
Equity Long Short Hedge [Member] | Fair Value [Member] | Alternative Investments [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 41 | ||
Equity Long Short Hedge [Member] | Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Alternative Investments [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 0 | ||
Equity Long Short Hedge [Member] | Significant Other Observable Inputs (Level 2) [Member] | Alternative Investments [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 0 | ||
Equity Long Short Hedge [Member] | Significant Unobservable Inputs (Level 3) [Member] | Alternative Investments [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 41 | ||
Private Equity [Member] | Fair Value [Member] | Alternative Investments [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 4,852 | 8,136 | |
Private Equity [Member] | Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Alternative Investments [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 0 | 0 | |
Private Equity [Member] | Significant Other Observable Inputs (Level 2) [Member] | Alternative Investments [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 0 | 0 | |
Private Equity [Member] | Significant Unobservable Inputs (Level 3) [Member] | Alternative Investments [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 4,852 | 8,136 | |
Real Estate Strategy [Member] | Fair Value [Member] | Alternative Investments [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 1,606 | 2,215 | |
Real Estate Strategy [Member] | Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Alternative Investments [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 0 | 0 | |
Real Estate Strategy [Member] | Significant Other Observable Inputs (Level 2) [Member] | Alternative Investments [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 0 | 0 | |
Real Estate Strategy [Member] | Significant Unobservable Inputs (Level 3) [Member] | Alternative Investments [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 1,606 | 2,215 | |
Short-term Investments [Member] | Fair Value [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 1,600 | 1,222 | |
Short-term Investments [Member] | Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 1,600 | 1,222 | |
Short-term Investments [Member] | Significant Other Observable Inputs (Level 2) [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 0 | 0 | |
Short-term Investments [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 0 | 0 | |
Deposit Administration Contracts [Member] | Fair Value [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 1,418 | 1,180 | |
Deposit Administration Contracts [Member] | Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 0 | 0 | |
Deposit Administration Contracts [Member] | Significant Other Observable Inputs (Level 2) [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 1,418 | 1,180 | |
Deposit Administration Contracts [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 0 | 0 | |
Cash And Short Term Investments [Member] | Fair Value [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 3,018 | 2,402 | |
Cash And Short Term Investments [Member] | Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 1,600 | 1,222 | |
Cash And Short Term Investments [Member] | Significant Other Observable Inputs (Level 2) [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 1,418 | 1,180 | |
Cash And Short Term Investments [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | $ 0 | $ 0 |
Retirement Plans (Changes in Fa
Retirement Plans (Changes in Fair Value of Securities Using Significant Unobservable Inputs) (Details) - Retirement Income Plan [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Fair value of assets, beginning of year | $ 253,452 | $ 225,817 |
Total gains (realized and unrealized) included in changes in net assets | (7,600) | 24,649 |
Fair value of assets, end of year | 249,700 | 253,452 |
Significant Unobservable Inputs (Level 3) [Member] | Alternative Investments [Member] | ||
Fair value of assets, beginning of year | 10,392 | 12,159 |
Total gains (realized and unrealized) included in changes in net assets | (410) | 1,586 |
Purchases | 51 | 334 |
Sales | 0 | 0 |
Issuances | 0 | 0 |
Settlements | (3,575) | (3,687) |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Fair value of assets, end of year | 6,458 | 10,392 |
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Fair value of assets, beginning of year | 10,392 | |
Fair value of assets, end of year | 6,458 | 10,392 |
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | Alternative Investments [Member] | ||
Fair value of assets, beginning of year | 10,392 | |
Fair value of assets, end of year | $ 6,458 | $ 10,392 |
Retirement Plans (Schedule of A
Retirement Plans (Schedule of Alternative Investment Portfolio by Strategy and Remaining Commitment) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Carrying Value | $ 77,842 | $ 99,203 |
Alternative Investments [Member] | ||
Carrying Value | 67,834 | 92,968 |
Remaining Commitment | 71,153 | |
Alternative Investments [Member] | Private Equity [Member] | ||
Carrying Value | 13,246 | $ 18,533 |
Remaining Commitment | $ 15,129 |
Retirement Plans (Benefit Payme
Retirement Plans (Benefit Payments) (Details) - Retirement Income Plan [Member] $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Estimated contribution from the employer | $ 11,700 |
2,016 | 9,917 |
2,017 | 10,958 |
2,018 | 12,005 |
2,019 | 13,045 |
2,020 | 14,092 |
2021 - 2025 | $ 84,400 |
Share-Based Payments (Summary o
Share-Based Payments (Summary of Shares Available for Issuance) (Details) | 12 Months Ended |
Dec. 31, 2015shares | |
Omnibus Stock Plan 2014 [Member] | |
Schedule of Share-Based Compensation Shares Available for Issuance [Line Items] | |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 3,500,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 3,138,273 |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number | 344,105 |
Employee Stock [Member] | |
Schedule of Share-Based Compensation Shares Available for Issuance [Line Items] | |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 1,500,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 663,154 |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number | 0 |
Agent Stock Purchase Plan [Member] | |
Schedule of Share-Based Compensation Shares Available for Issuance [Line Items] | |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 3,000,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 1,937,154 |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number | 0 |
Employee Stock Option [Member] | |
Schedule of Share-Based Compensation Shares Available for Issuance [Line Items] | |
Share-based Compensation Arrangement by Share-based Payment Award, Discount from Market Price, Offering Date | 85.00% |
Share-based Compensation Arrangement by Share-based Payment Award, Discount from Market Price, Purchase Date | 85.00% |
Agent Stock Purchase Plan [Member] | |
Schedule of Share-Based Compensation Shares Available for Issuance [Line Items] | |
Share-based Compensation Arrangement by Share-based Payment Award, Discount from Market Price, Purchase Date | 10.00% |
Shared-Based Payments (Summary
Shared-Based Payments (Summary of Retired Plans) (Details) | Dec. 31, 2015shares |
Omnibus Stock Plan [Member] | |
Schedule of Share-Based Compensation Retired Plans [Line Items] | |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 3,182,006 |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number | 1,225,486 |
Stock Compensation Plan For Non Employee Directors [Member] | |
Schedule of Share-Based Compensation Retired Plans [Line Items] | |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 67,978 |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number | 67,978 |
Stock Option Share Based Compensation [Member] | Omnibus Stock Plan [Member] | |
Schedule of Share-Based Compensation Retired Plans [Line Items] | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number | 493,428 |
Restricted Stock Units (RSUs) [Member] | Omnibus Stock Plan [Member] | |
Schedule of Share-Based Compensation Retired Plans [Line Items] | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number | 732,058 |
Share-Based Payments (Summar107
Share-Based Payments (Summary of the Restricted Stock Unit Transactions under Share-Based Payment Plans) (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Cash Incentive Plan [Member] | |||
Weighted average remaining expense life | 1 year 1 month 18 days | ||
Cash incentive unit payments made | $ 10.2 | $ 9 | $ 4.7 |
Restricted Stock Units (RSUs) [Member] | |||
Unvested RSU awards at December 31, 2014 | 1,077,010 | ||
Granted in 2015, number of shares | 342,409 | ||
Vested in 2015, number of shares | 371,930 | ||
Forfeited in 2015, number of shares | 28,959 | ||
Unvested RSU awards at Decemeber 31, 2015, number of shares | 1,018,530 | 1,077,010 | |
Unvested RSU awards at December 31, 2014, weighted average grant date fair value | $ 20.18 | ||
Granted in 2015, weighted average grant date fair value | 25.22 | $ 21.58 | $ 21.03 |
Vested in 2015, weighted average grant date value | 18.24 | ||
Forfeited in 2015, weighted average grant date fair value | 21.41 | ||
Unvested RSU awards at December 31, 2015, weighted average grant date fair value | $ 22.55 | $ 20.18 | |
Total unrecognized compensation cost related to unvested RSU awards | $ 5 | ||
Weighted average remaining expense life | 1 year 8 months 18 days | ||
Total intrinsic value of shares vested | $ 10.3 | $ 8.5 | $ 9.1 |
Dividend Equivalent Units [Member] | |||
Total intrinsic value of shares vested | $ 0.7 | $ 0.7 | $ 0.9 |
Share-Based Payments (Summar108
Share-Based Payments (Summary of Stock Option Transactions under Share-Based Payment Plans) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Outstanding at December 31, 2014, number of shares | 734,539 | ||
Granted in 2015, numbers of shares | 0 | ||
Exercised in 2015, number of shares | 241,111 | ||
Forfeited or expired 2015, number of shares | 0 | ||
Outstanding at December 31, 2015, number of shares | 493,428 | 734,539 | |
Exercisable at December 31, 2015, number of shares | 493,428 | ||
Outstanding at December 31, 2014, weighted average exercise price | $ 19.52 | ||
Granted in 2015, weighted average exercise price | 0 | ||
Exercised in 2015, weighted average exercise price | 22.97 | ||
Forfeited or expired 2015, weighted average exercise price | 0 | ||
Outstanding at December 31, 2015, weighted average exercise price | 17.84 | $ 19.52 | |
Exercisable as December 31, 2015, weighted average exercise price | $ 17.84 | ||
Outstanding at December 31, 2015, weighted average remaining contractual life in years | 2 years 10 months 25 days | ||
Exercisable at December 31, 2015, weighted average remaining contractual life in years | 2 years 10 months 25 days | ||
Outstanding at December 31, 2015, aggregate intrinsic value | $ 7,767 | ||
Exerciseable at December 31, 2015, aggregate intrinsic value | 7,767 | ||
Total intrinsic value of options exercised | 2,200 | $ 800 | $ 1,300 |
Cash Incentive Plan [Member] | |||
Share Based Compensation Liability Awards Amount Of Liability | $ 26,500 | $ 21,900 |
Shared-Based Payments (Summa109
Shared-Based Payments (Summary of ESPP and ASPP Shares Issued) (Details) - shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Schedule of Share-Based Compensation ESPP and ASPP Shares Granted [Line Items] | |||
Stock Issued During Period Shares | 863,426 | 769,389 | 862,662 |
Employee Stock [Member] | |||
Schedule of Share-Based Compensation ESPP and ASPP Shares Granted [Line Items] | |||
Stock Issued During Period Shares | 100,944 | 106,832 | 122,951 |
Agent Stock Purchase Plan [Member] | |||
Schedule of Share-Based Compensation ESPP and ASPP Shares Granted [Line Items] | |||
Stock Issued During Period Shares | 82,142 | 78,724 | 86,388 |
Share-Based Payments (Weighted
Share-Based Payments (Weighted Average Assumptions for Employee Stock Purchase Plan and Other Options) (Details) - Employee Stock Purchase Plan [Member] | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Risk-free interest rate | 0.10% | 0.07% | 0.11% |
Expected term | 6 months | 6 months | 6 months |
Dividend yield | 2.00% | 2.00% | 2.40% |
Expected volatility | 20.00% | 21.00% | 19.00% |
Share-Based Payments (Weighted-
Share-Based Payments (Weighted-Average Fair Value of Options and Stock Per Share) (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Restricted Stock Units (RSUs) [Member] | |||
Stock, weighted average grant date fair value | $ 25.22 | $ 21.58 | $ 21.03 |
Employee Stock Purchase Plan [Member] | |||
Options, weighted average grant date fair value | 1.26 | 1.24 | 0.97 |
15% of grant date market value | 4.16 | 3.87 | 3.24 |
Total ESPP | 5.42 | 5.11 | 4.21 |
Agent Stock Purchase Plan [Member] | |||
Stock, weighted average grant date fair value | $ 2.94 | $ 2.42 | $ 2.40 |
Shared-Based Payments (Summa112
Shared-Based Payments (Summary of Share-Based Compensation Expense) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Disclosure of Share-Based Compensation Expenses [Abstract] | |||
Share-based compensation expense charged against net income, Before Tax | $ 23.8 | $ 18.6 | $ 19.9 |
Share-based compensation expense income tax benefit | (8) | (6.2) | (6.8) |
Allocated Share-based Compensation Expense, Net of Tax | $ 15.8 | $ 12.4 | $ 13.1 |
Related Party Transactions (Nar
Related Party Transactions (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Equity ownership percentage of director of parent of general independent retail insurance agency | 10.00% | ||
Direct premiums written | $ 2,403,519 | $ 2,228,270 | $ 2,133,793 |
Contributions to the Selective Insurance Group Foundation | 1,000 | 800 | 400 |
Related Party Insurance Agency [Member] | |||
Direct premiums written | 9,600 | 9,000 | 8,200 |
Commissions paid to Rue Insurance | $ 1,700 | $ 1,600 | $ 1,300 |
Commitments and Contingencie114
Commitments and Contingencies (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Purchase amount of annuities | $ 15,800 | ||
Rental expense for operating leases for office space and equipment | $ 17,400 | $ 15,600 | $ 13,200 |
Capital Lease Agreements Expiration Period | 2,018 | ||
Other Investments [Member] | |||
Remaining Commitment | $ 74,353 |
Commitments and Contingencie115
Commitments and Contingencies (Future Minimum Rental Commitments) (Details) $ in Millions | Dec. 31, 2015USD ($) |
2016- Capital Leases | $ 3.9 |
2017- Capital Leases | 2.8 |
2018- Capital Leases | 1.2 |
2019- Capital Leases | 0 |
2020- Capital Leases | 0 |
After 2020- Capital Leases | 0 |
Total minimum payment required- Capital Leases | 7.9 |
2016- Operating Leases | 6.7 |
2017- Operating Leases | 5.5 |
2018- Operating Leases | 4.9 |
2019- Operating Leases | 4.1 |
2020- Operating Leases | 3.1 |
After 2020- Operating Leases | 5.8 |
Total minimum payment required- Operating Leases | 30.1 |
2016- Total Leases | 10.6 |
2017- Total Leases | 8.3 |
2018- Total Leases | 6.1 |
2019- Total Leases | 4.1 |
2020- Total Leases | 3.1 |
After 2020- Total Leases | 5.8 |
Total minimum payment required | $ 38 |
Statutory Financial Informat116
Statutory Financial Information, Capital Requirements and Restrictions on Dividends and Transfers of Funds (Statutory Financial Information) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statutory unassigned surplus | $ 890.7 | $ 772.2 | |
Statutory surplus | 1,426.3 | 1,307.8 | |
Statutory net income | 195.8 | 190.3 | $ 122.2 |
Selective Insurace Company of America (SICA) [Member] | |||
Statutory unassigned surplus | 366.6 | 338.8 | |
Statutory surplus | 520.8 | 493 | |
Statutory net income | 69.6 | 83.9 | 53.1 |
Selective Way Insurance Company (SWIC) [Member] | |||
Statutory unassigned surplus | 223.6 | 201.3 | |
Statutory surplus | 272.6 | 250.3 | |
Statutory net income | 42.3 | 37 | 27.5 |
Selective Insurance Company of South Carolina (SICSC) [Member] | |||
Statutory unassigned surplus | 96.6 | 83.9 | |
Statutory surplus | 127.9 | 115.1 | |
Statutory net income | 15.9 | 14 | 8.2 |
Selective Insurance Company of the Southeast (SICSE) [Member] | |||
Statutory unassigned surplus | 70.7 | 59.3 | |
Statutory surplus | 96.2 | 84.9 | |
Statutory net income | 12.1 | 10.5 | 6 |
Selective Insurance Company of New York (SICNY) [Member] | |||
Statutory unassigned surplus | 65.3 | 54.9 | |
Statutory surplus | 93 | 82.6 | |
Statutory net income | 12.7 | 10.3 | 6.9 |
Selective Insurance Company of New England (SICNE) [Member] | |||
Statutory unassigned surplus | 9.2 | 5.3 | |
Statutory surplus | 39.4 | 35.4 | |
Statutory net income | 5.5 | 4.4 | 3.1 |
Selective Auto Insurance Company of New Jersey (SAICNJ) [Member] | |||
Statutory unassigned surplus | 26.4 | 18.4 | |
Statutory surplus | 69.2 | 61.3 | |
Statutory net income | 10.8 | 9.1 | 2.5 |
Mesa Underwriting Specialty Insurance Company (MUSIC) [Member] | |||
Statutory unassigned surplus | 7 | (1.7) | |
Statutory surplus | 75.5 | 66.8 | |
Statutory net income | 9.5 | 7.3 | 5.2 |
Selective Casualty Insurance Company (SCIC) [Member] | |||
Statutory unassigned surplus | 17.8 | 8.2 | |
Statutory surplus | 92.3 | 82.7 | |
Statutory net income | 12.1 | 9.6 | 6.6 |
Selective Fire and Casualty Insurance Company (SFCIC) [Member] | |||
Statutory unassigned surplus | 7.5 | 3.8 | |
Statutory surplus | 39.4 | 35.7 | |
Statutory net income | $ 5.3 | $ 4.2 | $ 3.1 |
Statutory Financial Informat117
Statutory Financial Information, Capital Requirements, and Restrictions on Dividends and Transfers of Funds (Dividends) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Total stockholders’ equity | $ 1,398,041,000 | $ 1,275,586,000 | $ 1,153,928,000 |
Ordinary dividends paid | 57,800,000 | ||
Maximum ordinary dividends | $ 178,300,000 | ||
Maximum borrowing percentage | 10.00% | ||
New Jersey Dividend Restriction | 10.00% | ||
New York Dividend Restriction | 10.00% | ||
Dividend Restriction New York | 100.00% | ||
Selective Insurace Company of America (SICA) [Member] | |||
Ordinary dividends paid | $ 26,000,000 | ||
Maximum ordinary dividends | 61,200,000 | ||
Selective Way Insurance Company (SWIC) [Member] | |||
Ordinary dividends paid | 16,000,000 | ||
Maximum ordinary dividends | 37,000,000 | ||
Selective Insurance Company of South Carolina (SICSC) [Member] | |||
Ordinary dividends paid | 3,300,000 | ||
Maximum ordinary dividends | 15,900,000 | ||
Selective Insurance Company of the Southeast (SICSE) [Member] | |||
Ordinary dividends paid | 2,000,000 | ||
Maximum ordinary dividends | 12,100,000 | ||
Selective Insurance Company of New York (SICNY) [Member] | |||
Ordinary dividends paid | 2,500,000 | ||
Maximum ordinary dividends | 9,300,000 | ||
Selective Insurance Company of New England (SICNE) [Member] | |||
Ordinary dividends paid | 1,500,000 | ||
Maximum ordinary dividends | 5,500,000 | ||
Selective Auto Insurance Company of New Jersey (SAICNJ) [Member] | |||
Ordinary dividends paid | 2,500,000 | ||
Maximum ordinary dividends | 10,600,000 | ||
Mesa Underwriting Specialty Insurance Company (MUSIC) [Member] | |||
Maximum ordinary dividends | 9,400,000 | ||
Selective Casualty Insurance Company (SCIC) [Member] | |||
Ordinary dividends paid | 2,500,000 | ||
Maximum ordinary dividends | 12,100,000 | ||
Selective Fire and Casualty Insurance Company (SFCIC) [Member] | |||
Ordinary dividends paid | 1,500,000 | ||
Maximum ordinary dividends | 5,200,000 | ||
Parent Company [Member] | |||
Total stockholders’ equity | 1,400,000,000 | ||
Maximum ordinary dividends | 91,600,000 | ||
Additional Borrowing Capacity for Parent | $ 54,600,000 |
Quarterly Financial Informat118
Quarterly Financial Information (Details) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Feb. 12, 2016 | Dec. 31, 2015USD ($)$ / shares | Sep. 30, 2015USD ($)$ / shares | Jun. 30, 2015USD ($)$ / shares | Mar. 31, 2015USD ($)$ / shares | Dec. 31, 2014USD ($)$ / shares | Sep. 30, 2014USD ($)$ / shares | Jun. 30, 2014USD ($)$ / shares | Mar. 31, 2014USD ($)$ / shares | Dec. 31, 2015USD ($)$ / shares | Dec. 31, 2014USD ($)$ / shares | Dec. 31, 2013USD ($)$ / shares | |||||||||
Net premiums earned | $ 516,087 | $ 507,390 | $ 490,309 | $ 476,123 | $ 469,850 | $ 462,639 | $ 463,625 | $ 456,495 | $ 1,989,909 | $ 1,852,609 | $ 1,736,072 | |||||||||
Net investment income earned | 30,108 | 32,061 | 32,230 | 26,917 | 32,108 | 34,292 | 36,774 | 35,534 | 121,316 | 138,708 | 134,643 | |||||||||
Net realized gains (losses) | (2,600) | 308 | (3,420) | 18,883 | (389) | 15,231 | 4,539 | 7,218 | 31,537 | 37,703 | 26,375 | |||||||||
Underwriting income (loss), before federal income tax | 49,053 | 44,831 | 29,124 | 26,021 | 38,637 | 34,437 | 10,084 | (5,015) | ||||||||||||
Net income from continuing operations | 165,861 | 141,827 | 107,415 | |||||||||||||||||
Net income | 45,389 | 46,996 | 33,768 | 39,708 | 41,350 | 53,162 | 29,341 | 17,974 | 165,861 | 141,827 | 106,418 | |||||||||
Other comprehensive income (loss) | (3,386) | 6,290 | (35,944) | 3,827 | (29,337) | (18,887) | 26,483 | 16,678 | (29,213) | (5,063) | (29,189) | |||||||||
Comprehensive income | $ 42,003 | $ 53,286 | $ (2,176) | $ 43,535 | $ 12,013 | $ 34,275 | $ 55,824 | $ 34,652 | $ 136,648 | $ 136,764 | $ 77,229 | |||||||||
Basic net income per share | $ / shares | $ 0.79 | $ 0.82 | $ 0.59 | $ 0.70 | $ 0.73 | $ 0.94 | $ 0.52 | $ 0.32 | $ 2.90 | $ 2.52 | $ 1.91 | |||||||||
Diluted net income per share | $ / shares | 0.78 | 0.81 | 0.58 | 0.69 | 0.72 | 0.93 | 0.51 | 0.31 | 2.85 | 2.47 | 1.87 | |||||||||
Dividends to stockholders | $ / shares | $ 0.15 | [1] | $ 0.14 | [1] | $ 0.14 | [1] | $ 0.14 | [1] | $ 0.14 | [1] | $ 0.13 | [1] | $ 0.13 | [1] | $ 0.13 | [1] | $ 0.57 | $ 0.53 | $ 0.52 | |
Price range common stock, high | 34 | 37.91 | [2] | 32.50 | [2] | 29.60 | [2] | 30.10 | [2] | 27.65 | [2] | 25.46 | [2] | 25.42 | [2] | 26.99 | [2] | |||
Price range of common stock, low | 29.27 | 30.36 | [2] | 28.10 | [2] | 26.28 | [2] | 25.49 | [2] | 22.01 | [2] | 21.97 | [2] | 22.14 | [2] | 21.38 | [2] | |||
Accumulated other comprehensive income (loss) [Member] | ||||||||||||||||||||
Other comprehensive income (loss) | $ (29,213) | $ (5,063) | $ (29,189) | |||||||||||||||||
[1] | 1 See Note 19. “Statutory Financial Information, Capital Requirements, and Restrictions on Dividends and Transfers of Funds” for a discussion of dividend restrictions. | |||||||||||||||||||
[2] | 2 These ranges of high and low prices of the Parent’s common stock, as reported by the NASDAQ Global Select Market, represent actual transactions. Price quotations do not include retail markups, markdowns, and commissions. The range of high and low prices for common stock for the period beginning January 4, 2016 and ending February 12, 2016 was $29.27 to $34.00. |
Schedule I - Summay of Inves119
Schedule I - Summay of Investments - Other Than Investments in Related Parties (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Amortized Cost or Cost | $ 5,020,045 |
Carrying Amount | 5,089,269 |
Held-to-maturity Securities [Member] | |
Amortized Cost or Cost | 201,054 |
Fair Value | 209,544 |
Carrying Amount | 201,354 |
Held-to-maturity Securities [Member] | Obligations of States and Political Subdivisions [Member] | |
Amortized Cost or Cost | 175,269 |
Fair Value | 181,880 |
Carrying Amount | 176,117 |
Held-to-maturity Securities [Member] | Public utilities [Member] | |
Amortized Cost or Cost | 9,637 |
Fair Value | 10,662 |
Carrying Amount | 9,647 |
Held-to-maturity Securities [Member] | All Other Corporate Securities [Member] | |
Amortized Cost or Cost | 10,591 |
Fair Value | 11,353 |
Carrying Amount | 10,396 |
Held-to-maturity Securities [Member] | Asset-backed Securities [Member] | |
Amortized Cost or Cost | 1,030 |
Fair Value | 1,028 |
Carrying Amount | 910 |
Held-to-maturity Securities [Member] | Commercial Mortgage-backed Securities (CMBS) [Member] | |
Amortized Cost or Cost | 4,527 |
Fair Value | 4,621 |
Carrying Amount | 4,284 |
AFS Fixed Income Securities [Member] | |
Amortized Cost or Cost | 4,352,514 |
Fair Value | 4,408,203 |
Carrying Amount | 4,408,203 |
AFS Fixed Income Securities [Member] | U.S. Government and Government Agencies [Member] | |
Amortized Cost or Cost | 99,485 |
Fair Value | 104,115 |
Carrying Amount | 104,115 |
AFS Fixed Income Securities [Member] | Foreign Government Obligations [Member] | |
Amortized Cost or Cost | 14,885 |
Fair Value | 15,181 |
Carrying Amount | 15,181 |
AFS Fixed Income Securities [Member] | Obligations of States and Political Subdivisions [Member] | |
Amortized Cost or Cost | 1,314,779 |
Fair Value | 1,359,142 |
Carrying Amount | 1,359,142 |
AFS Fixed Income Securities [Member] | Public utilities [Member] | |
Amortized Cost or Cost | 156,786 |
Fair Value | 157,270 |
Carrying Amount | 157,270 |
AFS Fixed Income Securities [Member] | All Other Corporate Securities [Member] | |
Amortized Cost or Cost | 1,735,510 |
Fair Value | 1,742,912 |
Carrying Amount | 1,742,912 |
AFS Fixed Income Securities [Member] | Asset-backed Securities [Member] | |
Amortized Cost or Cost | 244,541 |
Fair Value | 244,154 |
Carrying Amount | 244,154 |
AFS Fixed Income Securities [Member] | Commercial Mortgage-backed Securities (CMBS) [Member] | |
Amortized Cost or Cost | 245,252 |
Fair Value | 243,592 |
Carrying Amount | 243,592 |
AFS Fixed Income Securities [Member] | Residential Mortgage Backed Securities (RMBS) [Member] | |
Amortized Cost or Cost | 541,276 |
Fair Value | 541,837 |
Carrying Amount | 541,837 |
Common Stock [Member] | |
Amortized Cost or Cost | 181,991 |
Fair Value | 194,789 |
Carrying Amount | 194,789 |
Common Stock [Member] | Public Utility, Equities [Member] | |
Amortized Cost or Cost | 9,106 |
Fair Value | 10,080 |
Carrying Amount | 10,080 |
Common Stock [Member] | Banks, Trust and Insurance Companies [Member] | |
Amortized Cost or Cost | 23,622 |
Fair Value | 23,696 |
Carrying Amount | 23,696 |
Common Stock [Member] | Industrial, Miscellaneous, and All Other [Member] | |
Amortized Cost or Cost | 149,263 |
Fair Value | 161,013 |
Carrying Amount | 161,013 |
Preferred Stock [Member] | |
Amortized Cost or Cost | 11,825 |
Fair Value | 12,262 |
Carrying Amount | 12,262 |
Preferred Stock [Member] | Banks, Trust and Insurance Companies [Member] | |
Amortized Cost or Cost | 11,825 |
Fair Value | 12,262 |
Carrying Amount | 12,262 |
Equity Securities [Member] | |
Amortized Cost or Cost | 193,816 |
Fair Value | 207,051 |
Carrying Amount | 207,051 |
Short-term Investments [Member] | |
Amortized Cost or Cost | 194,819 |
Fair Value | 194,819 |
Carrying Amount | 194,819 |
Other Investments [Member] | |
Amortized Cost or Cost | 77,842 |
Carrying Amount | $ 77,842 |
Parent Corporation Balance Shee
Parent Corporation Balance Sheet (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
ASSETS | ||||
Fixed income securities, available-for-sale – at fair value (amortized cost: $61,794 - 2015; $49,890 – 2014) | $ 4,408,203,000 | $ 4,066,122,000 | ||
Short-term investments | 194,819,000 | 131,972,000 | ||
Cash | 898,000 | 23,959,000 | $ 193,000 | $ 210,000 |
Deferred federal income tax | 92,696,000 | 98,449,000 | ||
Other assets | 78,339,000 | 66,607,000 | ||
Total assets | 6,904,433,000 | 6,574,942,000 | ||
Liabilities: | ||||
Notes payable | 388,192,000 | 372,689,000 | ||
Other liabilities | 255,984,000 | 190,675,000 | ||
Total liabilities | 5,506,392,000 | 5,299,356,000 | ||
Stockholders’ Equity: | ||||
Preferred stock of $0 par value per share: Authorized shares: 5,000,000; no shares issued or outstanding | 0 | 0 | ||
Common stock of $2 par value per share Authorized shares: 360,000,000 Issued: 100,861,372 - 2015; 99,947,933 - 2014 | 201,723,000 | 199,896,000 | ||
Additional paid-in capital | 326,656,000 | 305,385,000 | ||
Retained earnings | 1,446,192,000 | 1,313,440,000 | ||
Accumulated other comprehensive income (loss) | (9,425,000) | 19,788,000 | ||
Treasury stock - at cost (shares: 43,500,642 - 2015; 43,353,181 - 2014) | (567,105,000) | (562,923,000) | ||
Total stockholders’ equity | 1,398,041,000 | 1,275,586,000 | 1,153,928,000 | |
Total liabilities and stockholders’ equity | 6,904,433,000 | 6,574,942,000 | ||
Parent Company [Member] | ||||
ASSETS | ||||
Fixed income securities, available-for-sale – at fair value (amortized cost: $61,794 - 2015; $49,890 – 2014) | 61,567,000 | 50,028,000 | ||
Short-term investments | 29,116,000 | 16,605,000 | ||
Cash | 898,000 | 16,367,000 | $ 193,000 | $ 210,000 |
Investment in subsidiaries | 1,716,681,000 | 1,604,162,000 | ||
Current federal income tax | 18,297,000 | 16,848,000 | ||
Deferred federal income tax | 17,513,000 | 15,781,000 | ||
Other assets | 670,000 | 660,000 | ||
Total assets | 1,844,742,000 | 1,720,451,000 | ||
Liabilities: | ||||
Notes payable | 328,192,000 | 327,689,000 | ||
Intercompany notes payable | 86,163,000 | 88,961,000 | ||
Accrued long-term stock compensation | 26,465,000 | 21,890,000 | ||
Other liabilities | 5,881,000 | 6,325,000 | ||
Total liabilities | 446,701,000 | 444,865,000 | ||
Stockholders’ Equity: | ||||
Preferred stock of $0 par value per share: Authorized shares: 5,000,000; no shares issued or outstanding | 0 | 0 | ||
Common stock of $2 par value per share Authorized shares: 360,000,000 Issued: 100,861,372 - 2015; 99,947,933 - 2014 | 201,723,000 | 199,896,000 | ||
Additional paid-in capital | 326,656,000 | 305,385,000 | ||
Retained earnings | 1,446,192,000 | 1,313,440,000 | ||
Accumulated other comprehensive income (loss) | (9,425,000) | 19,788,000 | ||
Treasury stock - at cost (shares: 43,500,642 - 2015; 43,353,181 - 2014) | (567,105,000) | (562,923,000) | ||
Total stockholders’ equity | 1,398,041,000 | 1,275,586,000 | ||
Total liabilities and stockholders’ equity | $ 1,844,742,000 | $ 1,720,451,000 |
Parent Corporation Balance S121
Parent Corporation Balance Sheets (Parenthetical) (Details) - USD ($) $ / shares in Units, $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Fixed income securities, available-for-sale, amortized cost | $ 4,352,514 | $ 3,975,786 | |
Preferred stock, par value per share | $ 0 | $ 0 | $ 0 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 | |
Common stock, par value per share | $ 2 | $ 2 | |
Common stock, shares authorized | 360,000,000 | 360,000,000 | |
Common stock, shares issued | 100,861,372 | 99,947,933 | |
Treasury stock, shares | 43,500,642 | 43,353,181 | |
Parent Company [Member] | |||
Fixed income securities, available-for-sale, amortized cost | $ 61,794 | $ 49,890 | |
Preferred stock, par value per share | $ 0 | $ 0 | |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 | |
Preferred stock, shares issued | 0 | 0 | |
Preferred stock, shares outstanding | 0 | 0 | |
Common stock, par value per share | $ 2 | $ 2 | |
Common stock, shares authorized | 360,000,000 | 360,000,000 | |
Common stock, shares issued | 100,861,372 | 99,947,933 | |
Treasury stock, shares | 43,500,642 | 43,353,181 |
Parent Corporation Statements o
Parent Corporation Statements of Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenues: | |||||||||||
Dividends Paid to Parent Company | $ (57,800) | ||||||||||
Net investment income earned | $ 30,108 | $ 32,061 | $ 32,230 | $ 26,917 | $ 32,108 | $ 34,292 | $ 36,774 | $ 35,534 | 121,316 | $ 138,708 | $ 134,643 |
Other income | 7,456 | 16,945 | 12,294 | ||||||||
Total revenues | 2,131,852 | 2,034,861 | 1,903,741 | ||||||||
Expenses: | |||||||||||
Interest expense | 22,428 | 23,063 | 26,361 | ||||||||
Other expenses | 38,371 | 32,696 | 31,863 | ||||||||
Total expenses | 1,899,160 | 1,837,730 | 1,759,939 | ||||||||
Federal income tax benefit: | |||||||||||
Current | 45,347 | 28,415 | 24,147 | ||||||||
Deferred | 21,484 | 26,889 | 12,240 | ||||||||
Total federal income tax expense | 66,831 | 55,304 | 36,387 | ||||||||
Net income from continuing operations | 165,861 | 141,827 | 107,415 | ||||||||
Loss on disposal of discontinued operations | 0 | 0 | (997) | ||||||||
Net income | $ 45,389 | $ 46,996 | $ 33,768 | $ 39,708 | $ 41,350 | $ 53,162 | $ 29,341 | $ 17,974 | 165,861 | 141,827 | 106,418 |
Parent Company [Member] | |||||||||||
Revenues: | |||||||||||
Dividends Paid to Parent Company | 57,752 | 57,511 | 32,129 | ||||||||
Net investment income earned | 852 | 620 | 585 | ||||||||
Other income | 0 | 342 | 55 | ||||||||
Total revenues | 58,604 | 58,473 | 32,769 | ||||||||
Expenses: | |||||||||||
Interest expense | 24,057 | 24,817 | 28,132 | ||||||||
Other expenses | 28,393 | 23,598 | 24,065 | ||||||||
Total expenses | 52,450 | 48,415 | 52,197 | ||||||||
Income (loss) from continuing operations, before federal income tax | 6,154 | 10,058 | (19,428) | ||||||||
Federal income tax benefit: | |||||||||||
Current | (16,609) | (15,920) | (22,779) | ||||||||
Deferred | (1,603) | (646) | 4,835 | ||||||||
Total federal income tax expense | (18,212) | (16,566) | (17,944) | ||||||||
Net income (loss) from continuing operations before equity in undistributed income of subsidiaries | 24,366 | 26,624 | (1,484) | ||||||||
Equity In Undistributed Income Of Continuing Subsidiaries, Net Of Tax | 141,495 | 115,203 | 108,899 | ||||||||
Net income from continuing operations | 165,861 | 141,827 | 107,415 | ||||||||
Loss on disposal of discontinued operations | 0 | 0 | (997) | ||||||||
Net income | $ 165,861 | $ 141,827 | $ 106,418 |
Parent Company Income Statement
Parent Company Income Statement (Parenthetical) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Loss on disposal of discontinued operations, tax | $ 0 | $ 0 | $ (538,000) |
Parent Company [Member] | |||
Loss on disposal of discontinued operations, tax | $ 0 | $ 0 | $ (538,000) |
Parent Corporation Statement124
Parent Corporation Statements of Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Operating Activities | |||||||||||
Net income | $ 45,389 | $ 46,996 | $ 33,768 | $ 39,708 | $ 41,350 | $ 53,162 | $ 29,341 | $ 17,974 | $ 165,861 | $ 141,827 | $ 106,418 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Stock-based compensation expense | 8,973 | 8,702 | 8,630 | ||||||||
Loss on disposal of discontinued operations | 0 | 0 | 997 | ||||||||
Net realized gains | (13,171) | (26,599) | (20,732) | ||||||||
Amortization - other | 59,688 | 45,346 | 43,461 | ||||||||
Changes in assets and liabilities: | |||||||||||
(Increase) decrease in net federal income taxes | 25,004 | 31,323 | 14,834 | ||||||||
(Decrease) increase in other assets and other liabilities | 42,699 | (33,490) | (16,642) | ||||||||
Net adjustments | 215,719 | 90,936 | 229,706 | ||||||||
Net cash provided by operating activities | 381,580 | 232,763 | 336,124 | ||||||||
Investing Activities | |||||||||||
Purchase of fixed income securities, available-for-sale | (1,041,916) | (843,616) | (1,069,387) | ||||||||
Redemption and maturities of fixed income securities, available-for-sale | 567,445 | 482,816 | 513,804 | ||||||||
Sale of fixed income securities, available for sale | 106,621 | 73,415 | 116,584 | ||||||||
Purchase of short-term investments | (1,602,327) | (1,410,123) | (2,056,576) | ||||||||
Sale of short-term investments | 1,539,480 | 1,452,402 | 2,096,805 | ||||||||
Sale of subsidiary | 0 | 0 | 1,225 | ||||||||
Net cash 9used in) provided by investing activities | (391,543) | (169,468) | (391,025) | ||||||||
Financing Activities | |||||||||||
Dividends to stockholders | (31,052) | (28,428) | (27,416) | ||||||||
Acquisition of treasury stock | (4,182) | (3,563) | (3,716) | ||||||||
Proceeds from notes payable, net of debt issuance costs | 0 | 0 | 178,435 | ||||||||
Net proceeds from stock purchase and compensation plans | 10,089 | 7,283 | 7,119 | ||||||||
Excess tax benefits from share-based payment arrangements | 1,736 | 1,020 | 1,545 | ||||||||
Repayment of notes payable | 0 | 0 | (100,000) | ||||||||
Net cash (used in) provided by financing activities | (13,098) | (39,529) | 54,884 | ||||||||
Cash, beginning of year | 23,959 | 193 | 23,959 | 193 | 210 | ||||||
Cash, end of year | 898 | 23,959 | 898 | 23,959 | 193 | ||||||
Parent Company [Member] | |||||||||||
Operating Activities | |||||||||||
Net income | 165,861 | 141,827 | 106,418 | ||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Equity In Undistributed Income Of Continuing Subsidiaries, Net Of Tax | (141,495) | (115,203) | (108,899) | ||||||||
Stock-based compensation expense | 8,973 | 8,702 | 8,630 | ||||||||
Loss on disposal of discontinued operations | 0 | 0 | 997 | ||||||||
Net realized gains | 0 | (2) | 0 | ||||||||
Amortization - other | 740 | 1,421 | 4,353 | ||||||||
Changes in assets and liabilities: | |||||||||||
Increase in accrued long-term stock compensation | 4,575 | 1,062 | 6,791 | ||||||||
(Increase) decrease in net federal income taxes | (3,052) | 10,977 | (14,968) | ||||||||
(Decrease) increase in other assets and other liabilities | (214) | 1,045 | 1,204 | ||||||||
Net adjustments | (130,473) | (91,998) | (101,892) | ||||||||
Net cash provided by operating activities | 35,388 | 49,829 | 4,526 | ||||||||
Investing Activities | |||||||||||
Purchase of fixed income securities, available-for-sale | (33,717) | (18,511) | (21,708) | ||||||||
Redemption and maturities of fixed income securities, available-for-sale | 21,578 | 23,210 | 6,432 | ||||||||
Sale of fixed income securities, available for sale | 0 | 300 | 0 | ||||||||
Purchase of short-term investments | (106,933) | (102,717) | (241,748) | ||||||||
Sale of short-term investments | 94,422 | 101,510 | 253,136 | ||||||||
Capital contribution to subsidiaries | 0 | 0 | (57,125) | ||||||||
Sale of subsidiary | 0 | 0 | 1,225 | ||||||||
Net cash 9used in) provided by investing activities | (24,650) | 3,792 | (59,788) | ||||||||
Financing Activities | |||||||||||
Dividends to stockholders | (31,052) | (28,428) | (27,416) | ||||||||
Acquisition of treasury stock | (4,182) | (3,563) | (3,716) | ||||||||
Proceeds from notes payable, net of debt issuance costs | 0 | 0 | 178,435 | ||||||||
Net proceeds from stock purchase and compensation plans | 10,089 | 7,283 | 7,119 | ||||||||
Excess tax benefits from share-based payment arrangements | 1,736 | 1,020 | 1,545 | ||||||||
Repayment of notes payable | 0 | 0 | (100,000) | ||||||||
Principal payments of borrowings from subsidiaries | (2,798) | (13,759) | (722) | ||||||||
Net cash (used in) provided by financing activities | (26,207) | (37,447) | 55,245 | ||||||||
Net (decrease) increase in cash | (15,469) | 16,174 | (17) | ||||||||
Cash, beginning of year | $ 16,367 | $ 193 | 16,367 | 193 | 210 | ||||||
Cash, end of year | $ 898 | $ 16,367 | $ 898 | $ 16,367 | $ 193 |
Schedule III - Supplementary125
Schedule III - Supplementary Insurance Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Deferred policy acquisition costs | $ 213,159 | $ 185,608 | $ 172,981 |
Reserve for loss and loss expenses | 3,517,728 | 3,477,870 | 3,349,770 |
Unearned premiums | 1,169,710 | 1,095,819 | 1,059,155 |
Net premiums earned | 1,989,909 | 1,852,609 | 1,736,072 |
Net investment income | 134,487 | 165,307 | 155,375 |
Losses and loss expenses incurred | 1,148,541 | 1,157,501 | 1,121,738 |
Amortization of deferred policy acquisition costs | 399,435 | 364,295 | 331,828 |
Other operating expenses | 292,904 | 252,670 | 243,740 |
Net premiums written | 2,069,904 | 1,885,280 | 1,810,159 |
Policy acquisition costs | 689,820 | 624,470 | 579,977 |
Other income | (7,456) | (16,945) | (12,294) |
Other expenses | 38,371 | 32,696 | 31,863 |
Total | 692,339 | 616,965 | 575,568 |
Standard Commercial Lines [Member] | |||
Deferred policy acquisition costs | 171,476 | 147,285 | 138,397 |
Reserve for loss and loss expenses | 2,998,749 | 3,000,796 | 2,877,087 |
Unearned premiums | 803,648 | 734,697 | 708,861 |
Net premiums earned | 1,529,442 | 1,415,712 | 1,316,619 |
Net investment income | 0 | 0 | 0 |
Losses and loss expenses incurred | 819,573 | 870,018 | 831,261 |
Amortization of deferred policy acquisition costs | 323,753 | 295,774 | 270,443 |
Other operating expenses | 221,620 | 188,699 | 181,059 |
Net premiums written | 1,596,965 | 1,441,047 | 1,380,740 |
Standard Personal Lines [Member] | |||
Deferred policy acquisition costs | 17,258 | 17,495 | 18,149 |
Reserve for loss and loss expenses | 265,054 | 279,761 | 312,411 |
Unearned premiums | 276,533 | 285,777 | 286,969 |
Net premiums earned | 288,134 | 296,747 | 294,332 |
Net investment income | 0 | 0 | 0 |
Losses and loss expenses incurred | 200,237 | 197,182 | 206,450 |
Amortization of deferred policy acquisition costs | 33,638 | 34,851 | 33,097 |
Other operating expenses | 52,923 | 48,178 | 46,140 |
Net premiums written | 283,926 | 292,061 | 297,757 |
Excess And Surplus Operations [Member] | |||
Deferred policy acquisition costs | 24,425 | 20,828 | 16,435 |
Reserve for loss and loss expenses | 253,925 | 197,313 | 160,272 |
Unearned premiums | 89,529 | 75,345 | 63,325 |
Net premiums earned | 172,333 | 140,150 | 125,121 |
Net investment income | 0 | 0 | 0 |
Losses and loss expenses incurred | 128,731 | 90,301 | 84,027 |
Amortization of deferred policy acquisition costs | 42,044 | 33,670 | 28,288 |
Other operating expenses | 18,361 | 15,793 | 16,541 |
Net premiums written | 189,013 | 152,172 | 131,662 |
Investments Segment [Member] | |||
Deferred policy acquisition costs | 0 | 0 | 0 |
Reserve for loss and loss expenses | 0 | 0 | 0 |
Unearned premiums | 0 | 0 | 0 |
Net premiums earned | 0 | 0 | 0 |
Net investment income | 134,487 | 165,307 | 155,375 |
Losses and loss expenses incurred | 0 | 0 | 0 |
Amortization of deferred policy acquisition costs | 0 | 0 | 0 |
Other operating expenses | 0 | 0 | 0 |
Net premiums written | 0 | 0 | 0 |
Miscellaneous Income [Member] | |||
Other income | (7,456) | (16,598) | (12,201) |
Other Income [Member] | |||
Other income | 0 | (347) | (93) |
Miscellaneous Expense [Member] | |||
Other expenses | 9,975 | 9,093 | 7,792 |
Other Expense [Member] | |||
Other expenses | $ 28,396 | $ 23,603 | $ 24,071 |
Schedule IV - Reinsurance (Deta
Schedule IV - Reinsurance (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Direct Amount | $ 2,330,267 | $ 2,183,258 | $ 2,048,530 | ||||||||
Assumed From Other Companies | 23,209 | 34,653 | 44,464 | ||||||||
Ceded to Other Companies | 363,567 | 365,302 | 356,922 | ||||||||
Total Net Premiums Earned | $ 516,087 | $ 507,390 | $ 490,309 | $ 476,123 | $ 469,850 | $ 462,639 | $ 463,625 | $ 456,495 | $ 1,989,909 | $ 1,852,609 | $ 1,736,072 |
Percentage of Amount Assumed to Net | 1.00% | 2.00% | 3.00% | ||||||||
Accident and Health Insurance Segment [Member] | |||||||||||
Direct Amount | $ 37 | $ 44 | $ 55 | ||||||||
Assumed From Other Companies | 0 | 0 | 0 | ||||||||
Ceded to Other Companies | 37 | 44 | 55 | ||||||||
Total Net Premiums Earned | $ 0 | $ 0 | $ 0 | ||||||||
Percentage of Amount Assumed to Net | 0.00% | 0.00% | 0.00% | ||||||||
Property and liability insurance [Member] | |||||||||||
Direct Amount | $ 2,330,230 | $ 2,183,214 | $ 2,048,475 | ||||||||
Assumed From Other Companies | 23,209 | 34,653 | 44,464 | ||||||||
Ceded to Other Companies | 363,530 | 365,258 | 356,867 | ||||||||
Total Net Premiums Earned | $ 1,989,909 | $ 1,852,609 | $ 1,736,072 | ||||||||
Percentage of Amount Assumed to Net | 1.00% | 2.00% | 3.00% |
Schedule V - Allowance for Unc
Schedule V - Allowance for Uncollectible Premiums and Other Receivables (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Balance, January 1 | $ 11,037 | $ 9,542 | $ 8,706 |
Additions | 3,604 | 4,617 | 3,733 |
Deductions | (4,519) | (3,122) | (2,897) |
Balance, December 31 | $ 10,122 | $ 11,037 | $ 9,542 |