Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Feb. 27, 2015 | Jun. 30, 2014 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | EMC INSURANCE GROUP INC. | ||
Entity Central Index Key | 356130 | ||
Current Fiscal Year End Date | -19 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Public Float | $173,923,406 | ||
Entity Common Stock, Shares Outstanding | 13,632,033 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 31-Dec-14 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Investments: | ||||
Fixed maturity securities available-for-sale, at fair value (amortized cost $1,080,006 and $1,009,572) | $1,127,499 | $1,027,984 | ||
Equity securities available-for-sale, at fair value (cost $123,972 and $113,835) | 197,036 | 169,848 | ||
Other long-term investments | 6,227 | 2,392 | ||
Short-term investments | 53,262 | 56,166 | ||
Total investments | 1,384,024 | 1,256,390 | ||
Cash | 383 | 239 | ||
Reinsurance receivables due from affiliate | 28,603 | 30,328 | ||
Prepaid reinsurance premiums due from affiliate | 8,865 | 9,717 | ||
Deferred policy acquisition costs (affiliated $38,930 and $37,414) | 39,343 | 37,792 | ||
Prepaid pension and postretirement benefits due from affiliate | 17,360 | 23,121 | ||
Accrued investment income | 10,295 | 9,984 | ||
Accounts receivable | 1,767 | 1,080 | ||
Goodwill | 942 | 942 | ||
Other assets (affiliated $4,900 and $4,780) | 6,238 | 4,908 | ||
Total assets | 1,497,820 | 1,374,501 | ||
LIABILITIES | ||||
Losses and settlement expenses (affiliated $650,652 and $600,313) | 661,309 | 610,181 | ||
Unearned premiums (affiliated $230,460 and $218,788) | 232,093 | 220,627 | ||
Other policyholders' funds (all affiliated) | 10,153 | 8,491 | ||
Surplus notes payable to affiliate | 25,000 | 25,000 | ||
Amounts due affiliate to settle inter-company transaction balances | 8,559 | 9,090 | ||
Pension benefits payable to affiliate | 4,162 | 3,401 | ||
Income taxes payable | 3 | 1,530 | ||
Deferred income taxes | 28,654 | 12,822 | ||
Other liabilities (affiliated $23,941 and $25,161) | 25,001 | 28,149 | ||
Total liabilities | 994,934 | 919,291 | ||
STOCKHOLDERS' EQUITY | ||||
Common stock, $1 par value, authorized 20,000,000 shares; issued and outstanding, 13,562,980 shares in 2014 and 13,306,027 shares in 2013 | 13,563 | 13,306 | ||
Additional paid-in capital | 106,672 | 99,309 | ||
Accumulated other comprehensive income | 81,662 | [1] | 59,010 | [1] |
Retained earnings | 300,989 | 283,585 | ||
Total stockholders' equity | 502,886 | 455,210 | ||
Total liabilities and stockholders' equity | $1,497,820 | $1,374,501 | ||
[1] | All amounts are net of tax. Amounts in parentheses indicate debits. |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Investments: | ||
Fixed maturity securities available-for-sale, amortized cost | $1,080,006 | $1,009,572 |
Equity securities available-for-sale, cost | 123,972 | 113,835 |
Deferred policy acquisition costs from affiliates | 38,930 | 37,414 |
Affiliated other assets | 4,900 | 4,780 |
LIABILITIES | ||
Affiliated losses and settlement expenses | 650,652 | 600,313 |
Unearned premiums from affiliates | 230,460 | 218,788 |
Affiliated other liabilities | $23,941 | $25,161 |
STOCKHOLDERS' EQUITY | ||
Common stock, par value (in dollars per share) | $1 | $1 |
Common stock, shares authorized (in shares) | 20,000,000 | 20,000,000 |
Common stock, shares issued (in shares) | 13,562,980 | 13,306,027 |
Common stock, shares outstanding (in shares) | 13,562,980 | 13,306,027 |
CONSOLIDATED_STATEMENTS_OF_INC
CONSOLIDATED STATEMENTS OF INCOME (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
REVENUES | |||
Premiums earned (affiliated $534,105, $509,704 and $452,334) | $540,722 | $515,506 | $458,846 |
Investment income, net | 46,465 | 43,022 | 44,145 |
Net realized investment gains, excluding impairment losses on securities available-for-sale | 5,227 | 9,060 | 8,203 |
Total other-than-temporary impairment losses on securities available-for-sale | -878 | -63 | -186 |
Portion of other-than-temporary impairment losses on fixed maturity securities available-for-sale reclassified from other comprehensive income (before taxes) | 0 | 0 | 0 |
Net impairment losses on securities available-for-sale | -878 | -63 | -186 |
Net realized investment gains | 4,349 | 8,997 | 8,017 |
Other income (affiliated $1,784, $834 and $912) | 2,931 | 460 | 834 |
Total revenues | 594,467 | 567,985 | 511,842 |
LOSSES AND EXPENSES | |||
Losses and settlement expenses (affiliated $378,263, $326,130 and $298,798) | 385,474 | 333,287 | 303,388 |
Dividends to policyholders (all affiliated) | 9,504 | 10,864 | 8,630 |
Amortization of deferred policy acquisition costs (affiliated $97,551, $93,116 and $82,540) | 99,042 | 94,728 | 84,275 |
Other underwriting expenses (affiliated $57,148, $65,575 and $60,981) | 56,826 | 65,754 | 60,919 |
Interest expense (all affiliated) | 337 | 384 | 900 |
Other expense (affiliated $1,570, $1,356 and $2,097) | 2,377 | 2,115 | 2,097 |
Total losses and expenses | 553,560 | 507,132 | 460,209 |
Income before income tax expense | 40,907 | 60,853 | 51,633 |
INCOME TAX EXPENSE | |||
Current | 7,280 | 16,927 | 11,594 |
Deferred | 3,635 | 407 | 2,073 |
Total income tax expense | 10,915 | 17,334 | 13,667 |
Net income | $29,992 | $43,519 | $37,966 |
Net income per common share - basic and diluted | $2.23 | $3.33 | $2.95 |
Average number of common shares outstanding - basic and diluted (in shares) | 13,470,623 | 13,086,612 | 12,886,667 |
CONSOLIDATED_STATEMENTS_OF_INC1
CONSOLIDATED STATEMENTS OF INCOME (Parenthetical) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
REVENUES | |||
Premiums earned, affiliated | $534,105 | $509,704 | $452,334 |
Other income, affiliated | 1,784 | 834 | 912 |
LOSSES AND EXPENSES | |||
Losses and settlement expenses, affiliated | 378,263 | 326,130 | 298,798 |
Amortization of deferred policy acquisition costs, affiliated | 97,551 | 93,116 | 82,540 |
Other underwriting expenses, affiliated | 57,148 | 65,575 | 60,981 |
Other expense, affiliated | $1,570 | $1,356 | $2,097 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
Net income | $16,154 | $2,229 | $1,014 | $10,595 | $15,835 | $7,199 | $6,212 | $14,273 | $29,992 | $43,519 | $37,966 | ||
OTHER COMPREHENSIVE INCOME (LOSS) | |||||||||||||
Change in unrealized holding gains (losses) on investment securities, net of deferred income tax expense (benefit) of $18,664, $(8,390) and $12,849 | 34,663 | -15,582 | 23,863 | ||||||||||
Reclassification adjustment for realized investment gains included in net income, net of income tax expense of $(2,518), $(3,149) and $(2,806) | -4,677 | -5,848 | -5,211 | ||||||||||
Reclassification adjustment for amounts amortized into net periodic pension and postretirement benefit cost (income), net of deferred income tax (expense) benefit of $(955), $765 and $950: | |||||||||||||
Net actuarial loss | 375 | 1,882 | 2,108 | ||||||||||
Prior service credit | -2,149 | -460 | -344 | ||||||||||
Total reclassification adjustment associated with affiliate's pension and postretirement benefit plans | -1,774 | 1,422 | 1,764 | ||||||||||
Change in funded status of affiliate's pension and postretirement benefit plans, net of deferred income tax expense (benefit) of $(2,994), $16,836 and $(2): | |||||||||||||
Net actuarial gain (loss) | -5,525 | 13,718 | -736 | ||||||||||
Prior service (cost) credit | -35 | 17,548 | 732 | ||||||||||
Total change in funded status of affiliate's pension and postretirement benefit plans | -5,560 | 31,266 | -4 | ||||||||||
Other comprehensive income | 22,652 | [1] | 11,258 | [1] | 20,412 | ||||||||
Total comprehensive income | $52,644 | $54,777 | $58,378 | ||||||||||
[1] | All amounts are net of tax. Amounts in parentheses indicate debits. |
CONSOLIDATED_STATEMENTS_OF_COM1
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
OTHER COMPREHENSIVE INCOME (LOSS) | |||
Change in unrealized holding gains (losses) on investment securities, deferred income tax expense (benefit) | $18,664 | ($8,390) | $12,849 |
Reclassification adjustment for realized investment (gains) losses included in net income (loss), income tax (expense) benefit | -2,518 | -3,149 | -2,806 |
Reclassification adjustment for amounts amortized into net periodic pension and postretirement benefit cost (income), deferred income tax (expense) benefit | -955 | 765 | 950 |
Change in funded status of affiliate's pension and postretirement benefit plans, deferred income tax expense (benefit) | ($2,994) | $16,836 | ($2) |
CONSOLIDATED_STATEMENTS_OF_STO
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (USD $) | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Retained Earnings [Member] | |
In Thousands, unless otherwise specified | ||||||
Balance at Dec. 31, 2011 | $352,341 | $12,876 | $88,311 | $27,340 | $223,814 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of common stock through affiliate's stock plans | 692 | 34 | 658 | |||
Increase resulting from stock-based compensation expense associated with affiliate's stock plans allocated to the Company | 237 | 237 | ||||
Other comprehensive income | 20,412 | 20,412 | ||||
Net income | 37,966 | 37,966 | ||||
Dividends paid to public stockholders | -4,082 | -4,082 | ||||
Dividends paid to affiliate | -6,357 | -6,357 | ||||
Balance at Dec. 31, 2012 | 401,209 | 12,910 | 89,206 | 47,752 | 251,341 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of common stock through affiliate's stock plans | 10,208 | 396 | 9,812 | |||
Increase resulting from stock-based compensation expense associated with affiliate's stock plans allocated to the Company | 291 | 291 | ||||
Other comprehensive income | 11,258 | [1] | 11,258 | |||
Net income | 43,519 | 43,519 | ||||
Dividends paid to public stockholders | -4,526 | -4,526 | ||||
Dividends paid to affiliate | -6,749 | -6,749 | ||||
Balance at Dec. 31, 2013 | 455,210 | 13,306 | 99,309 | 59,010 | 283,585 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of common stock through affiliate's stock plans | 7,392 | 257 | 7,135 | |||
Increase resulting from stock-based compensation expense associated with affiliate's stock plans allocated to the Company | 228 | 228 | ||||
Other comprehensive income | 22,652 | [1] | 22,652 | |||
Net income | 29,992 | 29,992 | ||||
Dividends paid to public stockholders | -5,211 | -5,211 | ||||
Dividends paid to affiliate | -7,377 | -7,377 | ||||
Balance at Dec. 31, 2014 | $502,886 | $13,563 | $106,672 | $81,662 | $300,989 | |
[1] | All amounts are net of tax. Amounts in parentheses indicate debits. |
CONSOLIDATED_STATEMENTS_OF_STO1
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Statement of Stockholders' Equity [Abstract] | |||
Dividends paid to public stockholders (per share) | $0.94 | $0.86 | $0.81 |
Dividends paid to affiliate (per share) | $0.94 | $0.86 | $0.81 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net income | $29,992 | $43,519 | $37,966 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Losses and settlement expenses (affiliated $50,339, $22,836 and $(11,370)) | 51,128 | 27,084 | -10,203 |
Unearned premiums (affiliated $11,672, $22,572 and $15,526) | 11,466 | 24,412 | 15,526 |
Other policyholders' funds due to affiliate | 1,662 | 2,436 | 994 |
Amounts due to/from affiliate to settle inter-company transaction balances | -531 | -7,261 | -1,907 |
Net pension and postretirement benefits due from affiliate | -4,761 | 1,267 | 2,338 |
Reinsurance receivables due from affiliate | 1,725 | 1,174 | 5,239 |
Prepaid reinsurance premiums due from affiliate | 852 | -4,521 | 4,182 |
Commissions payable (affiliated $(196), $2,078 and $2,606) | -408 | 2,227 | 2,587 |
Deferred policy acquisition costs (affiliated $(1,516), $(2,988) and $(3,576)) | -1,551 | -3,367 | -3,576 |
Accrued investment income | -311 | -46 | 318 |
Current income tax | -1,424 | 3,213 | 8,080 |
Deferred income tax | 3,635 | 407 | 2,073 |
Net realized investment gains | -4,349 | -8,997 | -8,017 |
Other, net (affiliated $(1,122), $1,369 and $509) | 4,690 | 5,286 | -562 |
Total adjustments to reconcile net income to net cash provided by operating activities | 61,823 | 43,314 | 17,072 |
Net cash provided by operating activities | 91,815 | 86,833 | 55,038 |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Purchases of fixed maturity securities available-for-sale | -209,885 | -264,178 | -246,492 |
Disposals of fixed maturity securities available-for-sale | 131,942 | 175,664 | 226,672 |
Purchases of equity securities available-for-sale | -50,154 | -40,580 | -84,762 |
Disposals of equity securities available-for-sale | 45,698 | 47,479 | 71,008 |
Purchases of other long-term investments | -7,613 | -1,798 | -855 |
Disposals of other long-term investments | 530 | 246 | 6 |
Net purchases of short-term investments | 2,904 | -2,786 | -10,790 |
Net cash used in investing activities | -86,578 | -85,953 | -45,213 |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Issuance of common stock through affiliatebs stock plans | 7,392 | 10,208 | 692 |
Excess tax benefit associated with affiliatebs stock plans | 103 | 96 | -3 |
Dividends paid to stockholders (affiliated $(7,377), $(6,749) and $(6,357)) | -12,588 | -11,275 | -10,439 |
Net cash used in financing activities | -5,093 | -971 | -9,750 |
NET INCREASE (DECREASE) IN CASH | 144 | -91 | 75 |
Cash at the beginning of the year | 239 | 330 | 255 |
Cash at the end of the year | 383 | 239 | 330 |
Income taxes paid | 8,703 | 13,714 | 3,514 |
Interest paid to affiliate | $384 | $900 | $900 |
CONSOLIDATED_STATEMENTS_OF_CAS1
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Losses and settlement expenses, affiliated | $50,339 | $22,836 | ($11,370) |
Unearned premiums, affiliated | 11,672 | 22,572 | 15,526 |
Commissions payable, affiliated | -196 | 2,078 | 2,606 |
Deferred policy acquisition costs, affiliated | -1,516 | -2,988 | -3,576 |
Other, net, affiliated | -1,122 | 1,369 | 509 |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Dividends paid to stockholders, affiliated | ($7,377) | ($6,749) | ($6,357) |
SUMMARY_OF_SIGNIFICANT_ACCOUNT
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2014 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
Description of Business | |
EMC Insurance Group Inc., a majority owned subsidiary of Employers Mutual Casualty Company (Employers Mutual), is an insurance holding company with operations in property and casualty insurance and reinsurance. The Company conducts its property and casualty insurance operations through the following subsidiaries: EMCASCO Insurance Company, Illinois EMCASCO Insurance Company and Dakota Fire Insurance Company, and its reinsurance operations through its subsidiary, EMC Reinsurance Company. The Company also has an excess and surplus lines insurance agency subsidiary, EMC Underwriters, LLC. The term “Company” is used interchangeably to describe EMC Insurance Group Inc. (Parent Company only) and EMC Insurance Group Inc. and its subsidiaries. | |
The Company writes property and casualty insurance in both commercial and personal lines of insurance, with a focus on medium-sized commercial accounts. Approximately 37 percent of the premiums written are in Iowa and contiguous states. The Company’s reinsurance business is primarily written through a quota share reinsurance agreement with Employers Mutual. A small portion of the assumed reinsurance business is written on a direct basis, outside the quota share reinsurance agreement. | |
Principles of Consolidation and Basis of Presentation | |
The consolidated financial statements have been prepared on the basis of U.S. generally accepted accounting principles (GAAP), which differ in some respects from those followed in reports to insurance regulatory authorities. All significant inter-company balances and transactions have been eliminated. | |
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements, as well as the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. The Company has evaluated all subsequent events through the date the financial statements were issued. | |
Property and Casualty Insurance and Reinsurance Operations | |
Property and casualty insurance premiums are recognized as revenue ratably over the terms of the respective policies. Unearned premiums are calculated on the daily pro rata method. Both domestic and foreign assumed reinsurance premiums are recognized as revenues ratably over the terms of the related contracts and underlying policies. Amounts paid as ceded reinsurance premiums are reported as prepaid reinsurance premiums and are amortized over the remaining contract period in proportion to the amount of reinsurance protection provided. Reinsurance reinstatement premiums are recognized in the same period as the loss event that gave rise to the reinstatement premiums. | |
Costs related to the acquisition of insurance contracts are deferred and amortized to expense as the associated premium revenue is recognized. Only incremental costs or costs directly related to the successful acquisition of new or renewal insurance contracts are to be capitalized. Accordingly, acquisition costs consist of commissions, premium taxes, and salary and benefit expenses of employees directly involved in the underwriting of insurance policies that are successfully issued. | |
The method followed in computing deferred policy acquisition costs limits the amount of such deferred costs to the estimated realizable value. In determining estimated realizable value, the computation gives effect to the premium to be earned, related investment income, anticipated losses and settlement expenses, anticipated policyholder dividends, and certain other costs expected to be incurred to administer the insurance policies as the premium is earned. The anticipated losses and settlement expenses are not discounted and are based on the Company’s projected loss and settlement expense ratios for the next twelve months, which include catastrophe loads based on historical results adjusted for recent trends. The occurrence of a significant catastrophe, and/or accumulation of catastrophes would not have a direct impact on the determination of premium deficiencies; however, such occurrences would be included in the historical results that are used to establish the catastrophe loads. A premium deficiency is first recognized by expensing the amount of unamortized deferred policy acquisition costs necessary to eliminate the deficiency. If the premium deficiency is greater than the unamortized deferred policy acquisition costs, a liability is accrued for the excess deficiency. The Company did not record a premium deficiency for the years ended December 31, 2014, 2013 and 2012. | |
Certain commercial lines of business written by the property and casualty insurance subsidiaries, including workers’ compensation, are eligible for policyholder dividends in accordance with provisions of the underlying insurance policies. Net premiums written subject to policyholder dividends represented approximately 26 percent of the property and casualty insurance subsidiaries’ total net commercial premiums written in 2014. Policyholder dividends are accrued over the terms of the underlying policy periods. | |
Liabilities for losses reflect losses incurred through the balance sheet date and are based upon case-basis estimates of reported losses supplemented with bulk case loss reserves, estimates of unreported losses based upon prior experience adjusted for current trends, and estimates of losses expected to be paid under assumed reinsurance contracts. Liabilities for settlement expenses are provided by estimating expenses expected to be incurred in settling the claims provided for in the loss reserves. Changes in estimates are reflected in current operating results (see note 4). | |
Ceded reinsurance amounts with nonaffiliated reinsurers relating to reinsurance receivables for unpaid losses and settlement expenses and prepaid reinsurance premiums are reported on the balance sheet on a gross basis. Amounts ceded to Employers Mutual relating to the affiliated reinsurance pooling and excess of loss agreements (see note 2) have not been grossed up because the contracts provide that receivables and payables may be offset upon settlement. | |
Based on current information, the liabilities for losses and settlement expenses are considered to be adequate. Since the provisions are necessarily based on estimates, the ultimate liability may be more or less than such provisions. | |
Investments | |
Currently, all securities are classified as available-for-sale and are carried at fair value, with unrealized holding gains and losses reported as a component of accumulated other comprehensive income (loss) in stockholders’ equity, net of deferred income taxes. Other long-term investments consist of holdings in limited partnerships that are carried under the equity method of accounting, and holdings in limited partnerships and limited liability companies designed for the distribution of tax credits that are carried at amortized cost. The Company has an investment in a limited partnership that is designed to help protect the Company from a sudden and significant decline in the value of its equity portfolio. This limited partnership is carried under the equity method of accounting. Because of the nature of this investment, which was made solely to implement the equity tail-risk hedging strategy, changes in the carrying value of the limited partnership are recorded as realized investment gains (losses), rather than as a component of investment income. Short-term investments generally include money market funds, U.S. Treasury bills and commercial paper that are carried at fair value, which approximates cost. | |
The Company uses independent pricing sources to obtain the estimated fair value of securities. The fair value is based on quoted market prices, where available. In cases where quoted market prices are not available, the fair value is based on a variety of valuation techniques depending on the type of investment. The fair values obtained from independent pricing sources are reviewed for reasonableness and any discrepancies are investigated for final valuation (see note 8). | |
Premiums and discounts on fixed maturity securities are amortized over the life of the security as an adjustment to yield using the effective interest method. Amortization of premiums and discounts on mortgage-backed securities incorporates prepayment assumptions to estimate expected lives. Gains and losses realized on the disposition of investments are included in net income. The cost of investments sold is determined on the specific identification method using the highest cost basis first. Included in investments at December 31, 2014 and 2013 are securities on deposit with various regulatory authorities as required by law amounting to $11,685 and $11,533, respectively. | |
The Company regularly monitors its investments that have a fair value that is less than the carrying value for indications of “other-than-temporary” impairment. Several factors are used to determine whether the carrying value of an individual security has been “other-than-temporarily” impaired. Such factors include, but are not limited to (1) the security’s value and performance in the context of the overall markets, (2) length of time and extent the security’s fair value has been below carrying value, (3) key corporate events, and (4) for equity securities, the ability and intent to hold the security until recovery to its cost basis. When an equity security is deemed to be “other-than-temporarily” impaired, the carrying value is reduced to fair value and a realized loss is recognized and charged to income. For fixed maturity securities, if the present value of cash flows expected to be collected is less than the amortized cost of the security, a credit loss is deemed to exist and the security is considered “other-than-temporarily” impaired. The portion of the impairment related to a credit loss is recognized through earnings and the portion of the impairment related to other factors, if any, is recognized through “other comprehensive income”. Alternatively, if the Company has the intent to sell a fixed maturity security that is in an unrealized loss position, or determines that it will "more likely than not" be required to sell a fixed maturity security that is in an unrealized loss position before recovery of its amortized cost basis, then the carrying value is reduced to fair value and the entire amount of the impairment is recognized through earnings. | |
Income Taxes | |
The Company files a consolidated Federal income tax return with its subsidiaries. Consolidated income taxes/benefits are allocated among the entities based upon separate tax liabilities. | |
Deferred income taxes are provided for temporary differences between the tax basis of assets and liabilities and the reported amounts of those assets and liabilities for financial reporting purposes. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Income tax expense provisions increase or decrease in the same period in which a change in tax rates is enacted. A valuation allowance is established to reduce deferred tax assets to their net realizable value if it is “more likely than not” that a tax benefit will not be realized. | |
An assessment of the Company’s current tax positions indicated no uncertainties that would warrant different recognition and valuation from that applied in the Company’s tax returns. | |
Stock-Based Compensation | |
The Company has no stock-based compensation plans of its own; however, Employers Mutual has several stock plans that utilize the common stock of the Company. The Company receives the current fair value for all shares issued under these plans. Employers Mutual also has a stock appreciation rights (SAR) agreement in effect with a former executive officer of the Company. The SAR agreement is based upon the market price of the Company’s common stock and is considered to be a liability-classified award because it will be settled in cash. A portion of the compensation expense recognized by Employers Mutual (as the requisite service period for granted options and restricted stock awards is rendered, or the fair value of the SAR agreement changes) is allocated to the Company’s property and casualty insurance subsidiaries though their participation in the pooling agreement (see note 2). Because a portion of Employers Mutual’s stock compensation expense is reflected in the Company’s financial statements and issuances of the Company’s stock under Employers Mutual’s stock plans have an impact on the Company’s capital accounts, the disclosures required by the Compensation – Stock Compensation Topic 718 of the Financial Accounting Standards Board (FASB) Accounting Standards Codification™ (Codification or ASC) are included in the Company’s consolidated financial statements. | |
Employee Retirement Plans | |
Employers Mutual has various employee benefit plans, including two defined benefit pension plans, and two postretirement benefit plans that provide retiree healthcare and life insurance benefits. Although the Company has no employees of its own, it is responsible for its share of the expenses and related prepaid assets and liabilities of these plans as determined under the terms of the pooling agreement, and the costs allocated by Employers Mutual to subsidiaries that do not participate in the pooling agreement (see note 2). Accordingly, the Company recognizes its share of the funded status of Employers Mutual’s pension and postretirement benefit plans on its balance sheet, with changes in the funded status of the plans recognized through “other comprehensive income.” | |
Accounts Receivable | |
The accounts receivable balance consists of assumed reinsurance premiums receivable (net of any commissions) on business written directly by the reinsurance subsidiary, and commission income receivable on excess and surplus lines business marketed by EMC Underwriters, LLC. These receivables are carried at their initial recognition amounts. It is the Company’s policy to reflect the impairment of receivables through a valuation allowance until ultimately collected or charged-off. No valuation allowance is currently carried, as no amounts are deemed impaired. No interest income, other fees, or deferred costs related to these receivables are assessed or recognized. | |
Off-Balance-Sheet Credit Exposure | |
Employers Mutual collects from agents, policyholders and ceding companies all written premiums associated with the insurance business produced by the pool participants and the assumed reinsurance business ceded to the reinsurance subsidiary. Employers Mutual also collects from its reinsurers all losses and settlement expenses recoverable under the reinsurance contracts covering the pool participants and the fronting business ceded to the reinsurance subsidiary. Employers Mutual settles with the pool participants (monthly) and the reinsurance subsidiary (quarterly) the premiums written from these insurance and reinsurance policies and the paid losses and settlement expenses recoverable under the reinsurance contracts, providing full credit for the premiums written and the paid losses and settlement expenses recoverable under the reinsurance contracts generated during the period (not just the collected portion). Due to this arrangement, and since a significant portion of the premium balances are collected over the course of the coverage period, Employers Mutual carries a substantial receivable balance for insurance and reinsurance premiums in process of collection, and to a lesser extent, paid losses and settlement expenses recoverable from the reinsurance companies. Any of these receivable amounts that are ultimately deemed to be uncollectible are charged-off by Employers Mutual and the expense is charged to the reinsurance subsidiary or allocated to the pool members on the basis of pool participation. As a result, the Company has off-balance sheet arrangements with an unconsolidated entity that results in credit-risk exposures (Employers Mutual’s insurance and reinsurance premium receivable balances, and paid loss and settlement expense recoverable amounts) that are not reflected in the Company’s financial statements. The average annual expense for such charge-offs allocated to the Company over the past ten years is $354. Based on this historical data, this credit-risk exposure is not considered to be material to the Company’s results of operations or financial position, and accordingly, no loss contingency liability has been recorded. | |
Foreign Currency Transactions | |
Included in the underlying reinsurance business assumed by the reinsurance subsidiary are reinsurance transactions conducted with foreign cedants denominated in their local functional currencies. In accordance with the terms of the quota share agreement (see note 2), the reinsurance subsidiary assumes all foreign currency exchange gains/losses associated with contracts incepting on January 1, 2006 and thereafter that are subject to the quota share agreement. The reinsurance subsidiary also has foreign currency exchange gains/losses associated with the business assumed outside the quota share agreement. The assets and liabilities resulting from these foreign reinsurance transactions are reported in U.S. dollars based on the foreign currency exchange rates that existed at the balance sheet dates. The foreign currency exchange rate gains/losses reported in the consolidated statements of income that resulted from these foreign reinsurance transactions are reported in U.S. dollars re-measured from the foreign currency exchange rates that existed at the inception of each reinsurance contract. The foreign currency exchange rate gains/losses resulting from these re-measurements to U.S. dollars are reported as a component of other income in the consolidated statements of income. | |
Net Income Per Share - Basic and Diluted | |
The Company’s basic and diluted net income per share is computed by dividing net income by the weighted average number of common shares outstanding during each period. As previously noted, the Company receives the current fair value for all shares issued under Employers Mutual’s stock plans. As a result, the Company had no potential common shares outstanding during 2014, 2013 and 2012 that would have been dilutive to the calculation of net income per share. | |
Goodwill | |
Goodwill represents the excess of cost over the fair value of net assets of acquired subsidiaries. Goodwill is not amortized, but is subject to impairment if the carrying value of the goodwill exceeds the estimated fair value of net assets. If the carrying amount of the subsidiary (including goodwill) exceeds the computed fair value, an impairment loss is recognized through the income statement equal to the excess amount, but not greater than the balance of the goodwill. Goodwill was not deemed to be impaired in 2014, 2013 or 2012. | |
New Accounting Pronouncements | |
In January 2014, the FASB updated its guidance related to the Investments-Equity Method and Joint Ventures Topic 323 of the ASC. The objective of this update is to improve the reporting of investments in flow-through limited liability entities that manage or invest in affordable housing projects that qualify for low-income housing tax credits. This updated guidance allows an entity to elect to account for its investments in qualified affordable housing projects using the proportional amortization method if certain conditions are met. Current accounting guidance contains similar, but more restrictive, conditions to elect to use the effective yield method to account for these investments. This guidance is to be applied retrospectively to annual and interim reporting periods beginning after December 15, 2014. Early adoption is permitted. The Company will adopt this guidance during the first quarter of 2015. Adoption of this guidance is not expected to have an impact on the consolidated financial condition or operating results of the Company. | |
In May 2014, the FASB updated its guidance related to the Revenue from Contracts with Customers Topic 606 of the ASC. The objective of this update is to improve the reporting of revenue by providing a more robust framework for addressing revenue issues, and improved disclosure requirements. Current revenue recognition guidance in U.S. GAAP is comprised of broad revenue recognition concepts together with numerous revenue requirements for particular industries or transactions, which sometimes result in different accounting for economically similar transactions. This guidance is to be applied retrospectively to annual and interim reporting periods beginning after December 15, 2016. Early adoption is not permitted. The Company will adopt this guidance during the first quarter of 2017. Since premium revenue from insurance contracts is excluded from the scope of this updated guidance, adoption is expected to have little or no impact on the consolidated financial condition or operating results of the Company (the Company's largest non-premium revenue item is service charges related to the billing of the pool participants' direct written premiums to policyholders, which is included in "Other income" in the consolidated statements of income). |
AFFILIATION_AND_TRANSACTIONS_W
AFFILIATION AND TRANSACTIONS WITH AFFILIATES | 12 Months Ended |
Dec. 31, 2014 | |
Related Party Transactions [Abstract] | |
AFFILIATION AND TRANSACTIONS WITH AFFILIATES | AFFILIATION AND TRANSACTIONS WITH AFFILIATES |
The operations of the Company are highly integrated with those of Employers Mutual through participation in a property and casualty reinsurance pooling agreement (the "pooling agreement"), a reinsurance retrocessional quota share agreement (the "quota share agreement") and an excess of loss reinsurance agreement (the “excess of loss agreement”). All transactions occurring under the pooling agreement, quota share agreement and excess of loss agreement are based on statutory accounting principles. Certain adjustments are made to the statutory-basis amounts assumed by the property and casualty insurance subsidiaries and the reinsurance subsidiary to bring the amounts into compliance with GAAP. | |
Property and Casualty Insurance Subsidiaries | |
The Company’s three property and casualty insurance subsidiaries and two subsidiaries and an affiliate of Employers Mutual are parties to a pooling agreement with Employers Mutual. Under the terms of the pooling agreement, each company cedes to Employers Mutual all of its insurance business, with the exception of any voluntary reinsurance business assumed from nonaffiliated insurance companies, and assumes from Employers Mutual an amount equal to its participation in the pool. All premiums, losses, settlement expenses, and other underwriting and administrative expenses, excluding the voluntary reinsurance business assumed by Employers Mutual from nonaffiliated insurance companies, are prorated among the parties on the basis of participation in the pool. Employers Mutual negotiates reinsurance agreements that provide protection to the pool and each of its participants, including protection against losses arising from catastrophic events. The aggregate participation of the Company’s property and casualty insurance subsidiaries in the pool is 30 percent. | |
Operations of the pool give rise to inter-company balances with Employers Mutual, which are settled within 45 days after the end of each month. The investment and income tax activities of the pool participants are not subject to the pooling agreement. The pooling agreement provides that Employers Mutual will make up any shortfall or difference resulting from an error in its systems and/or computation processes that would otherwise result in the required restatement of the pool participants’ financial statements. | |
The purpose of the pooling agreement is to spread the risk of an exposure insured by any of the pool participants among all the companies. The pooling agreement produces a more uniform and stable underwriting result from year to year for all companies in the pool than might be experienced individually. In addition, each company benefits from the capacity of the entire pool, rather than being limited to policy exposures of a size commensurate with its own assets, and from the wide range of policy forms, lines of insurance written, rate filings and commission plans offered by each of the companies. | |
Reinsurance Subsidiary | |
The Company’s reinsurance subsidiary is party to a quota share agreement and an excess of loss reinsurance agreement with Employers Mutual. Under the terms of the quota share agreement, the reinsurance subsidiary assumes 100 percent of Employers Mutual’s assumed reinsurance business, subject to certain exceptions. Under the terms of the excess of loss agreement (covering both business assumed from Employers Mutual through the quota share agreement, as well as business obtained outside the quota share agreement), the reinsurance subsidiary retains the first $4,000 of losses per event, and also retains 20.0 percent of any losses between $4,000 and $10,000 and 10.0 percent of any losses between $10,000 and $50,000. During 2012, all losses associated with any one event above $4,000 were ceded to Employers Mutual. The cost of the excess of loss reinsurance protection is 8.0 percent (9.0 percent in 2013 and 10.0 percent in 2012) of the reinsurance subsidiary’s total assumed reinsurance premiums written. | |
The reinsurance subsidiary does not directly reinsure any of the insurance business written by Employers Mutual or the other pool participants; however, Employers Mutual assumes reinsurance business from the Mutual Reinsurance Bureau underwriting association (MRB), which provides a small amount of reinsurance protection to the members of the EMC Insurance Companies pooling agreement. As a result, the reinsurance subsidiary’s assumed exposures include a small portion of the EMC Insurance Companies’ direct business, after ceded reinsurance protections purchased by MRB are applied. In addition, the reinsurance subsidiary does not reinsure any “involuntary” facility or pool business that Employers Mutual assumes pursuant to state law. The reinsurance subsidiary assumes all foreign currency exchange gain/loss associated with contracts incepting on January 1, 2006 and thereafter that are subject to the quota share agreement. Operations of the quota share agreement and excess of loss agreement give rise to inter-company balances with Employers Mutual, which are settled within 45 days after the end of each quarter. The investment and income tax activities of the reinsurance subsidiary are not subject to either the quota share agreement or the excess of loss agreement. | |
Under the terms of the quota share agreement, the reinsurance subsidiary receives reinstatement premium income that is collected by Employers Mutual from the ceding companies when reinsurance coverage is reinstated after a loss event; however, the cap on losses assumed per event contained in the excess of loss agreement is automatically reinstated without cost. The reinsurance subsidiary recognized $2,256, $2,542 and $2,344 of reinstatement premium in 2014, 2013 and 2012, respectively. | |
Premiums earned assumed by the reinsurance subsidiary from Employers Mutual, including reinstatement premiums, amounted to $122,064, $129,746 and $107,112 in 2014, 2013 and 2012, respectively. The reinsurance subsidiary ceded 8.0 percent (9.0 percent in 2013 and 10.0 percent in 2012) of its total assumed reinsurance premiums written to Employers Mutual as payment for the excess of loss protection, which totaled $10,339, $12,761 and $11,916 in 2014, 2013 and 2012, respectively. Losses and settlement expenses assumed by the reinsurance subsidiary from Employers Mutual amounted to $79,499, $66,126 and $74,832 in 2014, 2013 and 2012, respectively. Losses and settlement expenses ceded to Employers Mutual under the excess of loss agreement totaled ($720), $823 and $9,926 in 2014, 2013 and 2012, respectively. | |
It is customary in the reinsurance business for the assuming company to compensate the ceding company for the acquisition expenses incurred in the generation of the business. Commissions incurred by the reinsurance subsidiary under the quota share agreement with Employers Mutual amounted to $25,621, $26,114 and $19,537 in 2014, 2013 and 2012, respectively. | |
The net foreign currency exchange gain/(loss) assumed by the reinsurance subsidiary from Employers Mutual was $1,033 in 2014, $8 in 2013 and $53 in 2012. The total amount of net foreign currency exchange gain/(loss) assumed by the reinsurance subsidiary, including the business written on a direct basis outside the quota share agreement, was $2,180 in 2014, $(366) in 2013 and $(25) in 2012. | |
Services Provided by Employers Mutual | |
The Company does not have any employees of its own. Employers Mutual performs all operations for all of its subsidiaries and affiliate. Such services include data processing, claims, financial, actuarial, legal, auditing, marketing and underwriting. Employers Mutual allocates a portion of the cost of these services to its subsidiaries that do not participate in the pooling agreement based upon a number of criteria, including usage of the services and the number of transactions. The remaining costs are charged to the pooling agreement and each pool participant shares in the total cost in accordance with its pool participation percentage. Costs allocated to the Company by Employers Mutual for services provided to the holding company and its subsidiaries that do not participate in the pooling agreement amounted to $3,540, $3,588 and $3,325 in 2014, 2013 and 2012, respectively. Costs allocated to the Company through the operation of the pooling agreement amounted to $76,041, $83,332 and $76,074 in 2014, 2013 and 2012, respectively. | |
Investment expenses are based on actual expenses incurred by the Company plus an allocation of other investment expenses incurred by Employers Mutual, which is based on a weighted-average of total invested assets and number of investment transactions. Investment expenses allocated to the Company by Employers Mutual amounted to $1,300, $1,568 and $1,297 in 2014, 2013 and 2012, respectively. |
REINSURANCE
REINSURANCE | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Reinsurance Disclosures [Abstract] | |||||||||||||
REINSURANCE | REINSURANCE | ||||||||||||
The parties to the pooling agreement cede insurance business to other insurers in the ordinary course of business for the purpose of limiting their maximum loss exposure through diversification of their risks. In its consolidated financial statements, the Company treats risks to the extent they are reinsured as though they were risks for which the Company is not liable. Insurance ceded by the pool participants does not relieve their primary liability as the originating insurers. Employers Mutual evaluates the financial condition of the reinsurers of the parties to the pooling agreement and monitors concentrations of credit risk arising from similar geographic regions, activities or economic characteristics of the reinsurers to minimize exposure to significant losses from reinsurer insolvencies. | |||||||||||||
As of December 31, 2014 and 2013, amounts recoverable from nonaffiliated reinsurers (three in 2014 and four in 2013) totaled $16,308 and $24,261 respectively, which represents a significant portion of the total prepaid reinsurance premiums and reinsurance receivables for losses and settlement expenses. The largest balance due is from the Mutual Reinsurance Bureau (MRB) underwriting association, of which the Company (through Employers Mutual) is a member with other unaffiliated reinsurers. All members of MRB have joint and several liability for MRB's obligations. For one of the other nonaffiliated reinsurers (two at December 31, 2013), the amounts reflect the property and casualty insurance subsidiaries’ aggregate pool participation percentage of amounts ceded by Employers Mutual to the organizations on a mandatory basis. Credit risk associated with these amounts are minimal, as all companies participating in the organizations are responsible for the liabilities of the organizations on a pro rata basis. | |||||||||||||
The effect of reinsurance on premiums written and earned, and losses and settlement expenses incurred, for the three years ended December 31, 2014 is presented below. The classification of the assumed and ceded reinsurance amounts between affiliates and nonaffiliates is based on the participants in the underlying reinsurance agreements, and is intended to provide an understanding of the actual source of the reinsurance activities. This presentation differs from the classifications used in the consolidated financial statements, where all amounts flowing through the pooling, quota share and excess of loss agreements with Employers Mutual are reported as “affiliated” balances. | |||||||||||||
Year ended December 31, 2014 | |||||||||||||
Property and | Reinsurance | Total | |||||||||||
casualty | |||||||||||||
insurance | |||||||||||||
Premiums written | |||||||||||||
Direct | $ | 367,732 | $ | — | $ | 367,732 | |||||||
Assumed from nonaffiliates | 3,955 | 143,564 | 147,519 | ||||||||||
Assumed from affiliates | 455,183 | — | 455,183 | ||||||||||
Ceded to nonaffiliates | (25,431 | ) | (14,322 | ) | (39,753 | ) | |||||||
Ceded to affiliates | (367,732 | ) | (10,339 | ) | (378,071 | ) | |||||||
Net premiums written | $ | 433,707 | $ | 118,903 | $ | 552,610 | |||||||
Premiums earned | |||||||||||||
Direct | $ | 372,658 | $ | — | $ | 372,658 | |||||||
Assumed from nonaffiliates | 3,787 | 144,439 | 148,226 | ||||||||||
Assumed from affiliates | 443,440 | — | 443,440 | ||||||||||
Ceded to nonaffiliates | (24,846 | ) | (15,759 | ) | (40,605 | ) | |||||||
Ceded to affiliates | (372,658 | ) | (10,339 | ) | (382,997 | ) | |||||||
Net premiums earned | $ | 422,381 | $ | 118,341 | $ | 540,722 | |||||||
Losses and settlement expenses incurred | |||||||||||||
Direct | $ | 227,382 | $ | — | $ | 227,382 | |||||||
Assumed from nonaffiliates | 2,201 | 96,281 | 98,482 | ||||||||||
Assumed from affiliates | 304,579 | 1,278 | 305,857 | ||||||||||
Ceded to nonaffiliates | (8,747 | ) | (10,838 | ) | (19,585 | ) | |||||||
Ceded to affiliates | (227,382 | ) | 720 | (226,662 | ) | ||||||||
Net losses and settlement expenses incurred | $ | 298,033 | $ | 87,441 | $ | 385,474 | |||||||
Year ended December 31, 2013 | |||||||||||||
Property and | Reinsurance | Total | |||||||||||
casualty | |||||||||||||
insurance | |||||||||||||
Premiums written | |||||||||||||
Direct | $ | 368,532 | $ | — | $ | 368,532 | |||||||
Assumed from nonaffiliates | 3,501 | 162,291 | 165,792 | ||||||||||
Assumed from affiliates | 425,218 | — | 425,218 | ||||||||||
Ceded to nonaffiliates | (23,670 | ) | (20,502 | ) | (44,172 | ) | |||||||
Ceded to affiliates | (368,532 | ) | (12,761 | ) | (381,293 | ) | |||||||
Net premiums written | $ | 405,049 | $ | 129,028 | $ | 534,077 | |||||||
Premiums earned | |||||||||||||
Direct | $ | 361,010 | $ | — | $ | 361,010 | |||||||
Assumed from nonaffiliates | 3,275 | 151,978 | 155,253 | ||||||||||
Assumed from affiliates | 412,665 | — | 412,665 | ||||||||||
Ceded to nonaffiliates | (23,221 | ) | (16,430 | ) | (39,651 | ) | |||||||
Ceded to affiliates | (361,010 | ) | (12,761 | ) | (373,771 | ) | |||||||
Net premiums earned | $ | 392,719 | $ | 122,787 | $ | 515,506 | |||||||
Losses and settlement expenses incurred | |||||||||||||
Direct | $ | 237,109 | $ | — | $ | 237,109 | |||||||
Assumed from nonaffiliates | 2,281 | 80,854 | 83,135 | ||||||||||
Assumed from affiliates | 267,292 | 1,199 | 268,491 | ||||||||||
Ceded to nonaffiliates | (8,656 | ) | (8,860 | ) | (17,516 | ) | |||||||
Ceded to affiliates | (237,109 | ) | (823 | ) | (237,932 | ) | |||||||
Net losses and settlement expenses incurred | $ | 260,917 | $ | 72,370 | $ | 333,287 | |||||||
Year ended December 31, 2012 | |||||||||||||
Property and | Reinsurance | Total | |||||||||||
casualty | |||||||||||||
insurance | |||||||||||||
Premiums written | |||||||||||||
Direct | $ | 341,306 | $ | — | $ | 341,306 | |||||||
Assumed from nonaffiliates | 2,459 | 121,500 | 123,959 | ||||||||||
Assumed from affiliates | 390,982 | — | 390,982 | ||||||||||
Ceded to nonaffiliates | (22,206 | ) | (2,338 | ) | (24,544 | ) | |||||||
Ceded to affiliates | (341,306 | ) | (11,916 | ) | (353,222 | ) | |||||||
Net premiums written | $ | 371,235 | $ | 107,246 | $ | 478,481 | |||||||
Premiums earned | |||||||||||||
Direct | $ | 328,227 | $ | — | $ | 328,227 | |||||||
Assumed from nonaffiliates | 2,297 | 119,502 | 121,799 | ||||||||||
Assumed from affiliates | 377,690 | — | 377,690 | ||||||||||
Ceded to nonaffiliates | (22,848 | ) | (5,879 | ) | (28,727 | ) | |||||||
Ceded to affiliates | (328,227 | ) | (11,916 | ) | (340,143 | ) | |||||||
Net premiums earned | $ | 357,139 | $ | 101,707 | $ | 458,846 | |||||||
Losses and settlement expenses incurred | |||||||||||||
Direct | $ | 191,282 | $ | — | $ | 191,282 | |||||||
Assumed from nonaffiliates | 1,718 | 83,988 | 85,706 | ||||||||||
Assumed from affiliates | 237,723 | 962 | 238,685 | ||||||||||
Ceded to nonaffiliates | (5,549 | ) | (5,528 | ) | (11,077 | ) | |||||||
Ceded to affiliates | (191,282 | ) | (9,926 | ) | (201,208 | ) | |||||||
Net losses and settlement expenses incurred | $ | 233,892 | $ | 69,496 | $ | 303,388 | |||||||
Individual lines in the above tables are defined as follows: | |||||||||||||
• | “Direct” represents business produced by the property and casualty insurance subsidiaries. | ||||||||||||
• | “Assumed from nonaffiliates” for the property and casualty insurance subsidiaries represents their aggregate 30 percent pool participation percentage of involuntary business assumed by the pool participants pursuant to state law. For the reinsurance subsidiary, this line represents the reinsurance business assumed through the quota share agreement (including “fronting” activities initiated by Employers Mutual) and the business assumed outside the quota share agreement. Contractual changes in 2012 on selected accounts resulted in a reduction in "fronting" activity for that year. | ||||||||||||
• | “Assumed from affiliates” for the property and casualty insurance subsidiaries represents their aggregate 30 percent pool participation percentage of all the pool members’ direct business. The amounts reported under the caption “Losses and settlement expenses incurred” also include claim-related services provided by Employers Mutual that are allocated to the property and casualty insurance subsidiaries and the reinsurance subsidiary. | ||||||||||||
• | “Ceded to nonaffiliates” for the property and casualty insurance subsidiaries represents their aggregate 30 percent pool participation percentage of 1) the amounts ceded to nonaffiliated reinsurance companies in accordance with the terms of the reinsurance agreements providing protection to the pool and each of its participants, and 2) the amounts ceded on a mandatory basis to state organizations in connection with various programs. For the reinsurance subsidiary, this line includes reinsurance business that is ceded to other insurance companies in connection with “fronting” activities initiated by Employers Mutual. Contractual changes in 2012 on selected accounts resulted in a reduction in "fronting" activity for that year. | ||||||||||||
• | “Ceded to affiliates” for the property and casualty insurance subsidiaries represents the cession of their direct business to Employers Mutual under the terms of the pooling agreement. For the reinsurance subsidiary this line represents amounts ceded to Employers Mutual under the terms of the excess of loss reinsurance agreement. |
LIABILITY_FOR_LOSSES_AND_SETTL
LIABILITY FOR LOSSES AND SETTLEMENT EXPENSES | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Liability for Future Policy Benefits and Unpaid Claims and Claims Adjustment Expense [Abstract] | |||||||||||||
LIABILITY FOR LOSSES AND SETTLEMENT EXPENSES | LIABILITY FOR LOSSES AND SETTLEMENT EXPENSES | ||||||||||||
The following table sets forth a reconciliation of beginning and ending reserves for losses and settlement expenses of the Company. Amounts presented are on a net basis, with a reconciliation of beginning and ending reserves to the gross amounts presented in the consolidated financial statements. | |||||||||||||
Year ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Gross reserves at beginning of year | $ | 610,181 | $ | 583,097 | $ | 593,300 | |||||||
Less re-valuation due to foreign currency exchange rates | 333 | (2 | ) | — | |||||||||
Less ceded reserves at beginning of year | 30,118 | 31,390 | 36,842 | ||||||||||
Net reserves at beginning of year | 579,730 | 551,709 | 556,458 | ||||||||||
Incurred losses and settlement expenses related to: | |||||||||||||
Current year | 406,266 | 346,072 | 329,121 | ||||||||||
Prior years | (20,792 | ) | (12,785 | ) | (25,733 | ) | |||||||
Total incurred losses and settlement expenses | 385,474 | 333,287 | 303,388 | ||||||||||
Paid losses and settlement expenses related to: | |||||||||||||
Current year | 162,905 | 137,998 | 145,103 | ||||||||||
Prior years | 167,182 | 167,268 | 163,034 | ||||||||||
Total paid losses and settlement expenses | 330,087 | 305,266 | 308,137 | ||||||||||
Net reserves at end of year | 635,117 | 579,730 | 551,709 | ||||||||||
Plus ceded reserves at end of year | 28,253 | 30,118 | 31,390 | ||||||||||
Plus re-valuation due to foreign currency exchange rates | (2,061 | ) | 333 | (2 | ) | ||||||||
Gross reserves at end of year | $ | 661,309 | $ | 610,181 | $ | 583,097 | |||||||
Development on prior years’ reserves resulting solely from changes in the allocation of bulk reserves between the current and prior accident years in the property and casualty insurance segment does not have an impact on earnings. This is due to the fact that such development is simply a mathematical by-product of the mechanical process used to reallocate bulk reserves to the various accident years. Earnings are only impacted by changes in the total amount of carried reserves. | |||||||||||||
The following table presents the reported amounts of favorable development experienced on prior years’ reserves and the portion of the reported development amounts that resulted solely from changes in the allocation of bulk reserves between the current and prior accident years in the property and casualty insurance segment (no impact on earnings). The result is an approximation of the implied amounts of favorable development that had an impact on earnings. | |||||||||||||
Year ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Reported amount of favorable development experienced on prior years' reserves | $ | (20,792 | ) | $ | (12,785 | ) | $ | (25,733 | ) | ||||
Adjustment for (adverse) favorable development included in the reported development amount that had no impact on earnings | 2,151 | 6,526 | (4,551 | ) | |||||||||
Approximation of the implied amount of favorable development that had an impact on earnings | $ | (18,641 | ) | $ | (6,259 | ) | $ | (30,284 | ) | ||||
There is an inherent amount of uncertainty involved in the establishment of insurance liabilities. This uncertainty is greatest in the current and more recent accident years because a smaller percentage of the expected ultimate claims have been reported, adjusted and settled compared to more mature accident years. For this reason, carried reserves for these accident years reflect prudently conservative assumptions. As the carried reserves for these accident years run off, the overall expectation is that, more often than not, favorable development will occur. However, there is also the possibility that the ultimate settlement of liabilities associated with these accident years will show adverse development, and such adverse development could be substantial. | |||||||||||||
Changes in reserve estimates are reflected in operating results in the year such changes are recorded. Following is an analysis of the reserve development the Company has experienced during the past three years. Care should be exercised when attempting to analyze the financial impact of the reported development amounts because, as noted above, the overall expectation is that, more often than not, favorable development will occur as the prior accident years’ reserves run off. | |||||||||||||
2014 Development | |||||||||||||
For the property and casualty insurance segment, the December 31, 2014 estimate of loss and settlement expense reserves for accident years 2013 and prior decreased $8,110 from the estimate at December 31, 2013. This decrease represents 1.9 percent of the December 31, 2013 gross carried reserves and is primarily attributed to better than expected outcomes on claims reported in prior years and favorable development on prior years' settlement expenses. No changes were made in the key actuarial assumptions utilized to estimate loss and settlement expense reserves during 2014; however, the accident year allocation factors applied to incurred but not reported (IBNR) loss, bulk case loss and a portion of defense and cost containment expense reserves were revised at December 31, 2014 as part of the annual review. This change resulted in the movement of $2,151 of reserves from prior accident years to the current accident year, and hence, was reported as favorable development on prior years' reserves. Development on prior years’ reserves resulting solely from changes in the allocation of bulk reserves between the current and prior accident years does not have an impact on earnings. | |||||||||||||
For the reinsurance segment, the December 31, 2014 estimate of loss and settlement expense reserves for accident years 2013 and prior decreased $12,682 from the estimate at December 31, 2013. This decrease represents 6.9 percent of the December 31, 2013 gross carried reserves and is largely attributable to reported losses being lower than what was expected as of December 2014 for accident years 2012 and prior, and a take down of IBNR on older accident years because the amount previously carried was no longer indicated in the actuarial analysis. | |||||||||||||
2013 Development | |||||||||||||
For the property and casualty insurance segment, the December 31, 2013 estimate of loss and settlement expense reserves for accident years 2012 and prior decreased $7,281 from the estimate at December 31, 2012. This decrease represented 1.8 percent of the December 31, 2012 gross carried reserves and was primarily attributed to favorable development on settlement expense reserves and ceded reinsurance reserves. No changes were made in the key actuarial assumptions utilized to estimate loss and settlement expense reserves during 2013; however, the accident year allocation factors applied to IBNR loss, bulk case loss and a portion of defense and cost containment expense reserves were revised at December 31, 2013 as part of the annual review. This change resulted in the movement of $6,526 of reserves from prior accident years to the current accident year, and hence, was reported as favorable development on prior years' reserves. Development on prior years’ reserves resulting solely from changes in the allocation of bulk reserves between the current and prior accident years does not have an impact on earnings. | |||||||||||||
For the reinsurance segment, the December 31, 2013 estimate of loss and settlement expense reserves for accident years 2012 and prior decreased $5,504 from the estimate at December 31, 2012. This decrease represented 3.2 percent of the December 31, 2012 gross carried reserves and was largely attributed to reported losses that were below the December 2012 implicit projections for policy year 2012 in the Home Office Reinsurance Assumed Department ("HORAD") book of business. | |||||||||||||
2012 Development | |||||||||||||
For the property and casualty insurance segment, the December 31, 2012 estimate of loss and settlement expense reserves for accident years 2011 and prior decreased $13,057 from the estimate at December 31, 2011. This decrease represented 3.1 percent of the December 31, 2011 gross carried reserves and was primarily attributed to decreased severity associated with the final settlement of prior accident years’ claims, and favorable development on settlement expense reserves. No changes were made in the key actuarial assumptions utilized to estimate loss and settlement expense reserves during 2012; however, the accident year allocation factors applied to IBNR loss, bulk case loss and a portion of defense and cost containment expense reserves were revised at December 31, 2012 as part of the annual review. This change resulted in the movement of $4,551 of reserves from the current accident year to prior accident years, and hence, was reported as adverse development on prior years' reserves. Development on prior years’ reserves resulting solely from changes in the allocation of bulk reserves between the current and prior accident years does not have an impact on earnings. | |||||||||||||
For the reinsurance segment, the December 31, 2012 estimate of loss and settlement expense reserves for accident years 2011 and prior decreased $12,676 from the estimate at December 31, 2011. This decrease represented 7.3 percent of the December 31, 2011 gross carried reserves and was largely attributed to reported losses that were below the December 2011 implicit projections for policy year 2011 in the HORAD book of business. |
ASBESTOS_AND_ENVIRONMENTAL_CLA
ASBESTOS AND ENVIRONMENTAL CLAIMS | 12 Months Ended |
Dec. 31, 2014 | |
Liability for Asbestos and Environmental Claims [Abstract] | |
ASBESTOS AND ENVIRONMENTAL CLAIMS | ASBESTOS AND ENVIRONMENTAL CLAIMS |
The Company has exposure to asbestos and environmental related claims associated with the insurance business written by the parties to the pooling agreement and the reinsurance business assumed from Employers Mutual by the reinsurance subsidiary. These exposures are not considered to be significant. Asbestos and environmental losses paid by the Company have averaged $1,720 per year over the past five years. Reserves for asbestos and environmental related claims for direct insurance and assumed reinsurance business totaled $9,420 and $9,643 ($9,296 and $8,950 net of reinsurance) at December 31, 2014 and 2013, respectively. | |
Estimating loss and settlement expense reserves for asbestos and environmental claims is very difficult due to the many uncertainties surrounding these types of claims. These uncertainties exist because the assignment of responsibility varies widely by state and claims often emerge long after a policy has expired, which makes assignment of damages to the appropriate party and to the time period covered by a particular policy difficult. In establishing reserves for these types of claims, management monitors the relevant facts concerning each claim, the current status of the legal environment, social and political conditions, and claim history and trends within the Company and the industry. | |
At present, the pool participants are defending approximately 1,849 asbestos bodily injury lawsuits, some of which involve multiple plaintiffs. Most of the lawsuits are subject to express reservation of rights based upon the lack of an injury within the applicable policy periods, because many asbestos lawsuits do not specifically allege dates of asbestos exposure or dates of injury. The pool participants’ policyholders named as defendants in these asbestos lawsuits are typically peripheral defendants who have little or no exposure and are routinely dismissed from asbestos litigation with nominal or no payment (i.e., small contractors, supply companies, and a furnace manufacturer). | |
Prior to 2008, actual losses paid for asbestos-related claims has been minimal due to the plaintiffs’ failure to identify an exposure to any asbestos-containing products associated with the pool participants’ current and former policyholders. However, paid losses and settlement expenses have increased significantly since 2008 as a result of claims attributed to one former policyholder. During the period 2009 through 2014, the Company's share of paid losses and settlement expenses attributed to this former policyholder, a furnace manufacturer, was $7,294 (primarily settlement expenses). The asbestos exposure associated with this former policyholder has increased in recent years, and this trend may possibly continue into the future with increased per plaintiff settlements. Approximately 690 asbestos exposure claims associated with this former policyholder remain open. | |
The Company continues to run-off ultimate asbestos and environmental reserves established from an outside consultant’s ground-up study completed a number of years ago. The direct IBNR and bulk settlement expense reserves associated with asbestos has been increased each year for the last several years in response to new information. In particular, bulk settlement expense reserves have been increased to cover the costs associated with the retention of a national coordinating counsel to address the multi-state litigation issues of the Company’s largest asbestos defendant (the furnace manufacturer discussed above). Additionally, in 2012 the Company jointly settled a long-term asbestos case representing the Company’s share of 20 years’ worth of defense costs. Increased settlement expense payments have been the main driver of the reserve increases over the past several years. |
STATUTORY_INFORMATION_AND_DIVI
STATUTORY INFORMATION AND DIVIDEND RESTRICTIONS | 12 Months Ended |
Dec. 31, 2014 | |
STATUTORY INFORMATION AND DIVIDEND RESTRICTIONS [Abstract] | |
STATUTORY INFORMATION AND DIVIDEND RESTRICTIONS | STATUTORY INFORMATION AND DIVIDEND RESTRICTIONS |
The Company’s insurance subsidiaries are required to file financial statements with state regulatory authorities. The accounting principles used to prepare these statutory financial statements follow prescribed or permitted accounting practices that differ from GAAP. Prescribed statutory accounting principles include state laws, regulations and general administrative rules issued by the state of domicile, as well as a variety of publications and manuals of the National Association of Insurance Commissioners (NAIC). Permitted accounting practices encompass all accounting practices not prescribed, but allowed by the state of domicile. The Company’s insurance subsidiaries had no permitted accounting practices during 2014, 2013 or 2012. | |
Statutory surplus of the Company’s insurance subsidiaries was $454,799 and $416,718 at December 31, 2014 and 2013, respectively. Statutory net income of the Company’s insurance subsidiaries was $32,159, $41,162 and $38,102 for 2014, 2013 and 2012, respectively. | |
The NAIC utilizes a risk-based capital model to help state regulators assess the capital adequacy of insurance companies and identify insurers that are in, or are perceived as approaching, financial difficulty. This model establishes minimum capital needs based on the risks applicable to the operations of the individual insurer. The risk-based capital requirements for property and casualty insurance companies measure three major areas of risk: asset risk, credit risk and underwriting risk. Companies having less statutory surplus than required by the risk-based capital requirements are subject to varying degrees of regulatory scrutiny and intervention, depending on the severity of the inadequacy. At December 31, 2014, the Company’s insurance subsidiaries had total adjusted statutory capital of $454,799, which is well in excess of the minimum risk-based capital requirement of $73,243. | |
The amount of dividends available for distribution to the Company by its insurance subsidiaries is limited by law to a percentage of the statutory unassigned surplus of each of the subsidiaries as of the previous December 31, as determined in accordance with accounting practices prescribed by insurance regulatory authorities of the state of domicile of each subsidiary. Subject to this limitation, the maximum dividend that may be paid within a 12 month period without prior approval of the insurance regulatory authorities is generally restricted to the greater of 10 percent of statutory surplus as regards policyholders as of the preceding December 31, or net income of the preceding calendar year on a statutory basis, not greater than earned statutory surplus. At December 31, 2014, $45,480 was available for distribution to the Company in 2015 without prior approval. |
SEGMENT_INFORMATION
SEGMENT INFORMATION | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||
SEGMENT INFORMATION | SEGMENT INFORMATION | ||||||||||||||||
The Company’s operations consist of a property and casualty insurance segment and a reinsurance segment. The property and casualty insurance segment writes both commercial and personal lines of insurance, with a focus on medium-sized commercial accounts. The reinsurance segment provides reinsurance for other insurers and reinsurers. The segments are managed separately due to differences in the insurance products sold and the business environments in which they operate. The accounting policies of the segments are described in note 1, Summary of Significant Accounting Policies. | |||||||||||||||||
Summarized financial information for the Company’s segments is as follows: | |||||||||||||||||
Year ended December 31, 2014 | Property and | Reinsurance | Parent | Consolidated | |||||||||||||
casualty | company | ||||||||||||||||
insurance | |||||||||||||||||
Premiums earned | $ | 422,381 | $ | 118,341 | $ | — | $ | 540,722 | |||||||||
Underwriting profit (loss) | (12,309 | ) | 2,185 | — | (10,124 | ) | |||||||||||
Net investment income (loss) | 33,509 | 12,968 | (12 | ) | 46,465 | ||||||||||||
Realized investment gains | 2,938 | 1,411 | — | 4,349 | |||||||||||||
Other income (loss) | 695 | 2,236 | — | 2,931 | |||||||||||||
Interest expense | 337 | — | — | 337 | |||||||||||||
Other expenses | 793 | — | 1,584 | 2,377 | |||||||||||||
Income (loss) before income tax expense (benefit) | $ | 23,703 | $ | 18,800 | $ | (1,596 | ) | $ | 40,907 | ||||||||
Assets | $ | 1,057,429 | $ | 434,139 | $ | 503,008 | $ | 1,994,576 | |||||||||
Eliminations | — | — | (495,288 | ) | (495,288 | ) | |||||||||||
Reclassifications | (909 | ) | — | (559 | ) | (1,468 | ) | ||||||||||
Total assets | $ | 1,056,520 | $ | 434,139 | $ | 7,161 | $ | 1,497,820 | |||||||||
Year ended December 31, 2013 | Property and | Reinsurance | Parent | Consolidated | |||||||||||||
casualty | company | ||||||||||||||||
insurance | |||||||||||||||||
Premiums earned | $ | 392,719 | $ | 122,787 | $ | — | $ | 515,506 | |||||||||
Underwriting profit (loss) | (10,435 | ) | 21,308 | — | 10,873 | ||||||||||||
Net investment income (loss) | 31,397 | 11,635 | (10 | ) | 43,022 | ||||||||||||
Realized investment gains | 7,525 | 1,472 | — | 8,997 | |||||||||||||
Other income (loss) | 765 | (305 | ) | — | 460 | ||||||||||||
Interest expense | 384 | — | — | 384 | |||||||||||||
Other expenses | 751 | — | 1,364 | 2,115 | |||||||||||||
Income (loss) before income tax expense (benefit) | $ | 28,117 | $ | 34,110 | $ | (1,374 | ) | $ | 60,853 | ||||||||
Assets | $ | 974,743 | $ | 386,855 | $ | 455,368 | $ | 1,816,966 | |||||||||
Eliminations | — | — | (441,984 | ) | (441,984 | ) | |||||||||||
Reclassifications | — | — | (481 | ) | (481 | ) | |||||||||||
Total assets | $ | 974,743 | $ | 386,855 | $ | 12,903 | $ | 1,374,501 | |||||||||
Year ended December 31, 2012 | Property and | Reinsurance | Parent | Consolidated | |||||||||||||
casualty | company | ||||||||||||||||
insurance | |||||||||||||||||
Premiums earned | $ | 357,139 | $ | 101,707 | $ | — | $ | 458,846 | |||||||||
Underwriting profit (loss) | (8,207 | ) | 9,841 | — | 1,634 | ||||||||||||
Net investment income (loss) | 32,214 | 11,941 | (10 | ) | 44,145 | ||||||||||||
Realized investment gains | 7,348 | 669 | — | 8,017 | |||||||||||||
Other income (loss) | 774 | 60 | — | 834 | |||||||||||||
Interest expense | 900 | — | — | 900 | |||||||||||||
Other expenses | 798 | — | 1,299 | 2,097 | |||||||||||||
Income (loss) before income tax expense (benefit) | $ | 30,431 | $ | 22,511 | $ | (1,309 | ) | $ | 51,633 | ||||||||
The following table displays the net premiums earned of the property and casualty insurance segment and the reinsurance segment for the three years ended December 31, 2014, by line of insurance. | |||||||||||||||||
Year ended December 31, | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Property and casualty insurance segment | |||||||||||||||||
Commercial lines: | |||||||||||||||||
Automobile | $ | 96,908 | $ | 86,230 | $ | 76,362 | |||||||||||
Property | 97,155 | 87,446 | 77,726 | ||||||||||||||
Workers' compensation | 88,356 | 83,172 | 75,697 | ||||||||||||||
Liability | 86,108 | 77,983 | 68,661 | ||||||||||||||
Other | 7,416 | 7,487 | 7,614 | ||||||||||||||
Total commercial lines | 375,943 | 342,318 | 306,060 | ||||||||||||||
Personal lines: | |||||||||||||||||
Automobile | 25,094 | 27,408 | 28,437 | ||||||||||||||
Property | 20,562 | 22,285 | 22,020 | ||||||||||||||
Liability | 782 | 708 | 622 | ||||||||||||||
Total personal lines | 46,438 | 50,401 | 51,079 | ||||||||||||||
Total property and casualty insurance | $ | 422,381 | $ | 392,719 | $ | 357,139 | |||||||||||
Reinsurance segment | |||||||||||||||||
Pro rata reinsurance: | |||||||||||||||||
Property and liability | $ | 8,552 | $ | 7,489 | $ | 6,232 | |||||||||||
Property | 4,793 | 15,775 | 13,509 | ||||||||||||||
Crop | 3,636 | 4,455 | 3,841 | ||||||||||||||
Liability | 9,919 | 5,172 | 1,171 | ||||||||||||||
Marine | 14,983 | 14,757 | 5,708 | ||||||||||||||
Total pro rata reinsurance | 41,883 | 47,648 | 30,461 | ||||||||||||||
Excess of loss reinsurance: | |||||||||||||||||
Property | 64,956 | 64,069 | 59,537 | ||||||||||||||
Liability | 11,408 | 11,070 | 11,698 | ||||||||||||||
Surety | 94 | — | 11 | ||||||||||||||
Total excess of loss reinsurance | 76,458 | 75,139 | 71,246 | ||||||||||||||
Total reinsurance | $ | 118,341 | $ | 122,787 | $ | 101,707 | |||||||||||
Consolidated | $ | 540,722 | $ | 515,506 | $ | 458,846 | |||||||||||
DISCLOSURES_ABOUT_THE_FAIR_VAL
DISCLOSURES ABOUT THE FAIR VALUE OF FINANCIAL INSTRUMENTS | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||
DISCLOSURES ABOUT THE FAIR VALUE OF FINANCIAL INSTRUMENTS | DISCLOSURES ABOUT THE FAIR VALUE OF FINANCIAL INSTRUMENTS | ||||||||||||||||
The carrying amount and the estimated fair value of the Company’s financial instruments is summarized below. | |||||||||||||||||
Carrying | Estimated | ||||||||||||||||
amount | fair value | ||||||||||||||||
December 31, 2014 | |||||||||||||||||
Assets: | |||||||||||||||||
Fixed maturity securities available-for-sale: | |||||||||||||||||
U.S. treasury | $ | 9,703 | $ | 9,703 | |||||||||||||
U.S. government-sponsored agencies | 215,616 | 215,616 | |||||||||||||||
Obligations of states and political subdivisions | 326,058 | 326,058 | |||||||||||||||
Commercial mortgage-backed | 46,762 | 46,762 | |||||||||||||||
Residential mortgage-backed | 97,953 | 97,953 | |||||||||||||||
Other asset-backed | 16,005 | 16,005 | |||||||||||||||
Corporate | 415,402 | 415,402 | |||||||||||||||
Total fixed maturity securities available-for-sale | 1,127,499 | 1,127,499 | |||||||||||||||
Equity securities available-for-sale: | |||||||||||||||||
Common stocks: | |||||||||||||||||
Financial services | 34,379 | 34,379 | |||||||||||||||
Information technology | 26,865 | 26,865 | |||||||||||||||
Healthcare | 26,852 | 26,852 | |||||||||||||||
Consumer staples | 16,694 | 16,694 | |||||||||||||||
Consumer discretionary | 22,691 | 22,691 | |||||||||||||||
Energy | 22,863 | 22,863 | |||||||||||||||
Industrials | 18,221 | 18,221 | |||||||||||||||
Other | 16,056 | 16,056 | |||||||||||||||
Non-redeemable preferred stocks | 12,415 | 12,415 | |||||||||||||||
Total equity securities available-for-sale | 197,036 | 197,036 | |||||||||||||||
Short-term investments | 53,262 | 53,262 | |||||||||||||||
Liabilities: | |||||||||||||||||
Surplus notes | 25,000 | 12,308 | |||||||||||||||
Carrying | Estimated | ||||||||||||||||
amount | fair value | ||||||||||||||||
December 31, 2013 | |||||||||||||||||
Assets: | |||||||||||||||||
Fixed maturity securities available-for-sale: | |||||||||||||||||
U.S. treasury | $ | 9,412 | $ | 9,412 | |||||||||||||
U.S. government-sponsored agencies | 146,946 | 146,946 | |||||||||||||||
Obligations of states and political subdivisions | 357,052 | 357,052 | |||||||||||||||
Commercial mortgage-backed | 68,939 | 68,939 | |||||||||||||||
Residential mortgage-backed | 94,179 | 94,179 | |||||||||||||||
Other asset-backed | 12,648 | 12,648 | |||||||||||||||
Corporate | 338,808 | 338,808 | |||||||||||||||
Total fixed maturity securities available-for-sale | 1,027,984 | 1,027,984 | |||||||||||||||
Equity securities available-for-sale: | |||||||||||||||||
Common stocks: | |||||||||||||||||
Financial services | 28,498 | 28,498 | |||||||||||||||
Information technology | 18,917 | 18,917 | |||||||||||||||
Healthcare | 21,945 | 21,945 | |||||||||||||||
Consumer staples | 13,011 | 13,011 | |||||||||||||||
Consumer discretionary | 21,031 | 21,031 | |||||||||||||||
Energy | 21,117 | 21,117 | |||||||||||||||
Industrials | 17,264 | 17,264 | |||||||||||||||
Other | 17,811 | 17,811 | |||||||||||||||
Non-redeemable preferred stocks | 10,254 | 10,254 | |||||||||||||||
Total equity securities available-for-sale | 169,848 | 169,848 | |||||||||||||||
Short-term investments | 56,166 | 56,166 | |||||||||||||||
Liabilities: | |||||||||||||||||
Surplus notes | 25,000 | 10,040 | |||||||||||||||
The estimated fair value of fixed maturity and equity securities is based on quoted market prices, where available. In cases where quoted market prices are not available, fair values are based on a variety of valuation techniques depending on the type of security. | |||||||||||||||||
Short-term investments generally include money market funds, U.S. Treasury bills and commercial paper. Short-term investments are carried at fair value, which approximates cost, due to the highly liquid nature of the securities. Short-term securities are classified as Level 1 fair value measurements when the fair value can be validated by recent trades. When recent trades are not available, fair value is deemed to be the cost basis and the securities are classified as Level 2 fair value measurements. | |||||||||||||||||
The estimated fair value of the surplus notes is derived by discounting future expected cash flows at a rate deemed appropriate. The discount rate was set at the average of current yields-to-maturity on several insurance company surplus notes that are traded in observable markets, adjusted upward by 50 basis points to reflect illiquidity and perceived risk premium differences. Other assumptions include a 25-year term (the surplus notes have no stated maturity date) and an interest rate that continues at the current 1.35 percent interest rate. The rate is typically adjusted every five years and is based upon the then-current Federal Home Loan Bank borrowing rate for 5-year funds available to Employers Mutual. | |||||||||||||||||
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The following fair value hierarchy prioritizes inputs to valuation techniques used to measure fair value: | |||||||||||||||||
Level 1 - | Unadjusted quoted prices for identical assets or liabilities in active markets that the Company has the ability to access. | ||||||||||||||||
Level 2 - | Quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in inactive markets; or valuations based on models where the significant inputs are observable (e.g., interest rates, yield curves, prepayment speeds, default rates, loss severities, etc.) or can be corroborated by observable market data. | ||||||||||||||||
Level 3 - | Prices or valuation techniques that require significant unobservable inputs because observable inputs are not available. The unobservable inputs may reflect the Company’s own judgments about the assumptions that market participants would use. | ||||||||||||||||
The Company uses an independent pricing source to obtain the estimated fair values of a majority of its securities, subject to an internal validation. The fair values are based on quoted market prices, where available. This is typically the case for equity securities and money market funds, which are accordingly classified as Level 1 fair value measurements. In cases where quoted market prices are not available, fair values are based on a variety of valuation techniques depending on the type of security. Fixed maturity securities, non-redeemable preferred stocks and various short-term investments in the Company’s portfolio may not trade on a daily basis; however, observable inputs are utilized in their valuations, and these securities are therefore classified as Level 2 fair value measurements. Following is a brief description of the various pricing techniques used by the independent pricing source for different asset classes. | |||||||||||||||||
• | U.S. Treasury securities (including bonds, notes, and bills) are priced according to a number of live data sources, including active market makers and inter-dealer brokers. Prices from these sources are reviewed based on the sources’ historical accuracy for individual issues and maturity ranges. | ||||||||||||||||
• | U.S. government-sponsored agencies and corporate securities (including fixed-rate corporate bonds and medium-term notes) are priced by determining a bullet (non-call) spread scale for each issuer for maturities going out to forty years. These spreads represent credit risk and are obtained from the new issue market, secondary trading, and dealer quotes. An option adjusted spread model is incorporated to adjust spreads of issues that have early redemption features. The final spread is then added to the U.S. Treasury curve. | ||||||||||||||||
• | Obligations of states and political subdivisions are priced by tracking and analyzing actively quoted issues and reported trades, material event notices and benchmark yields. Municipal bonds with similar characteristics are grouped together into market sectors, and internal yield curves are constructed daily for these sectors. Individual bond evaluations are extrapolated from these sectors, with the ability to make individual spread adjustments for attributes such as discounts, premiums, alternative minimum tax, and/or whether or not the bond is callable. | ||||||||||||||||
• | Mortgage-backed and asset-backed securities are first reviewed for the appropriate pricing speed (if prepayable), spread, yield and volatility. The securities are priced with models using spreads and other information solicited from Wall Street buy- and sell-side sources, including primary and secondary dealers, portfolio managers, and research analysts. To determine a tranche’s price, first the benchmark yield is determined and adjusted for collateral performance, tranche level attributes and market conditions. Then the cash flow for each tranche is generated (using consensus prepayment speed assumptions including, as appropriate, a prepayment projection based on historical statistics of the underlying collateral). The tranche-level yield is used to discount the cash flows and generate the price. Depending on the characteristics of the tranche, a volatility-driven, multi-dimensional single cash flow stream model or an option-adjusted spread model may be used. When cash flows or other security structure or market information is not available, broker quotes may be used. | ||||||||||||||||
On a quarterly basis, the Company receives from its independent pricing service a list of fixed maturity securities, if any, that were priced solely from broker quotes. For these securities, fair value may be determined using the broker quotes, or by the Company using similar pricing techniques as the Company’s independent pricing service. Depending on the level of observable inputs, these securities would be classified as Level 2 or Level 3 fair value measurements. At December 31, 2014 the Company had no securities priced solely from broker quotes. At December 31, 2013, seven securities were priced solely from broker quotes, but all of the securities were reported as Level 2 fair value measurements due to the broker quote prices approximating the Company's price estimates obtained by applying pricing techniques with observable inputs. | |||||||||||||||||
A small number of the Company’s securities are not priced by the independent pricing service. One is an equity security that is reported as a Level 3 fair value measurement at December 31, 2014 and 2013, since no reliable observable inputs are used in its valuation. This equity security continues to be reported at the fair value obtained from the Securities Valuation Office (SVO) of the National Association of Insurance Commissioners (NAIC). The SVO establishes a per share price for this security based on an annual review of that company’s financial statements, typically performed during the second quarter. The other securities not priced by the Company’s independent pricing service at December 31, 2014 include ten fixed maturity securities (six at December 31, 2013). Two of these fixed maturity securities, classified as Level 3 fair value measurements, are corporate securities that convey premium tax benefits and are not publicly traded. The fair values for these securities are based on discounted cash flow analyses. The other fixed maturity securities are classified as Level 2 fair value measurements. The fair values for these fixed maturity securities were obtained from either the SVO or the Company’s investment custodian using similar pricing techniques as the Company’s independent pricing service. | |||||||||||||||||
Presented in the table below are the estimated fair values of the Company’s financial instruments as of December 31, 2014 and 2013. | |||||||||||||||||
Fair value measurements using | |||||||||||||||||
31-Dec-14 | Total | Quoted | Significant | Significant | |||||||||||||
prices in | other | unobservable | |||||||||||||||
active markets | observable | inputs | |||||||||||||||
for identical | inputs | (Level 3) | |||||||||||||||
assets | (Level 2) | ||||||||||||||||
(Level 1) | |||||||||||||||||
Financial instruments reported at fair value on recurring basis: | |||||||||||||||||
Assets: | |||||||||||||||||
Fixed maturity securities available-for-sale: | |||||||||||||||||
U.S. treasury | $ | 9,703 | $ | — | $ | 9,703 | $ | — | |||||||||
U.S. government-sponsored agencies | 215,616 | — | 215,616 | — | |||||||||||||
Obligations of states and political subdivisions | 326,058 | — | 326,058 | — | |||||||||||||
Commercial mortgage-backed | 46,762 | — | 46,762 | — | |||||||||||||
Residential mortgage-backed | 97,953 | — | 97,953 | — | |||||||||||||
Other asset-backed | 16,005 | — | 16,005 | — | |||||||||||||
Corporate | 415,402 | — | 413,740 | 1,662 | |||||||||||||
Total fixed maturity securities available-for-sale | 1,127,499 | — | 1,125,837 | 1,662 | |||||||||||||
Equity securities available-for-sale: | |||||||||||||||||
Common stocks: | |||||||||||||||||
Financial services | 34,379 | 34,376 | — | 3 | |||||||||||||
Information technology | 26,865 | 26,865 | — | — | |||||||||||||
Healthcare | 26,852 | 26,852 | — | — | |||||||||||||
Consumer staples | 16,694 | 16,694 | — | — | |||||||||||||
Consumer discretionary | 22,691 | 22,691 | — | — | |||||||||||||
Energy | 22,863 | 22,863 | — | — | |||||||||||||
Industrials | 18,221 | 18,221 | — | — | |||||||||||||
Other | 16,056 | 16,056 | — | — | |||||||||||||
Non-redeemable preferred stocks | 12,415 | 7,745 | 4,670 | — | |||||||||||||
Total equity securities available-for-sale | 197,036 | 192,363 | 4,670 | 3 | |||||||||||||
Short-term investments | 53,262 | 53,262 | — | — | |||||||||||||
Financial instruments not reported at fair value: | |||||||||||||||||
Liabilities: | |||||||||||||||||
Surplus notes | 12,308 | — | — | 12,308 | |||||||||||||
Fair value measurements using | |||||||||||||||||
31-Dec-13 | Total | Quoted | Significant | Significant | |||||||||||||
prices in | other | unobservable | |||||||||||||||
active markets | observable | inputs | |||||||||||||||
for identical | inputs | (Level 3) | |||||||||||||||
assets | (Level 2) | ||||||||||||||||
(Level 1) | |||||||||||||||||
Financial instruments reported at fair value on recurring basis: | |||||||||||||||||
Assets: | |||||||||||||||||
Fixed maturity securities available-for-sale: | |||||||||||||||||
U.S. treasury | $ | 9,412 | $ | — | $ | 9,412 | $ | — | |||||||||
U.S. government-sponsored agencies | 146,946 | — | 146,946 | — | |||||||||||||
Obligations of states and political subdivisions | 357,052 | — | 357,052 | — | |||||||||||||
Commercial mortgage-backed | 68,939 | — | 68,939 | — | |||||||||||||
Residential mortgage-backed | 94,179 | — | 94,179 | — | |||||||||||||
Other asset-backed | 12,648 | — | 12,648 | — | |||||||||||||
Corporate | 338,808 | — | 336,832 | 1,976 | |||||||||||||
Total fixed maturity securities available-for-sale | 1,027,984 | — | 1,026,008 | 1,976 | |||||||||||||
Equity securities available-for-sale: | |||||||||||||||||
Common stocks: | |||||||||||||||||
Financial services | 28,498 | 28,495 | — | 3 | |||||||||||||
Information technology | 18,917 | 18,917 | — | — | |||||||||||||
Healthcare | 21,945 | 21,945 | — | — | |||||||||||||
Consumer staples | 13,011 | 13,011 | — | — | |||||||||||||
Consumer discretionary | 21,031 | 21,031 | — | — | |||||||||||||
Energy | 21,117 | 21,117 | — | — | |||||||||||||
Industrials | 17,264 | 17,264 | — | — | |||||||||||||
Other | 17,811 | 17,811 | — | — | |||||||||||||
Non-redeemable preferred stocks | 10,254 | 5,795 | 4,459 | — | |||||||||||||
Total equity securities available-for-sale | 169,848 | 165,386 | 4,459 | 3 | |||||||||||||
Short-term investments | 56,166 | 56,166 | — | — | |||||||||||||
Financial instruments not reported at fair value: | |||||||||||||||||
Liabilities: | |||||||||||||||||
Surplus notes | 10,040 | — | — | 10,040 | |||||||||||||
Presented in the table below is a reconciliation of the assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the years ended December 31, 2014 and 2013. Any unrealized gains or losses on these securities are recognized in other comprehensive income. Any gains or losses from disposals or impairments of these securities are reported as realized investment gains or losses in net income. | |||||||||||||||||
Fair value measurements using significant unobservable inputs (Level 3) | |||||||||||||||||
Fixed maturity securities available-for-sale, corporate | Equity securities | Total | |||||||||||||||
available-for-sale, | |||||||||||||||||
financial services | |||||||||||||||||
Balance at December 31, 2012 | $ | — | $ | 2 | $ | 2 | |||||||||||
Purchases | 1,972 | — | 1,972 | ||||||||||||||
Settlements | (1 | ) | — | (1 | ) | ||||||||||||
Unrealized gains included in other comprehensive income (loss) | 5 | 1 | 6 | ||||||||||||||
Balance at December 31, 2013 | 1,976 | 3 | 1,979 | ||||||||||||||
Settlements | (322 | ) | — | (322 | ) | ||||||||||||
Unrealized gains included in other comprehensive income (loss) | 8 | — | 8 | ||||||||||||||
Balance at December 31, 2014 | $ | 1,662 | $ | 3 | $ | 1,665 | |||||||||||
There were no transfers into or out of Levels 1 or 2 during 2014 or 2013. It is the Company’s policy to recognize transfers between levels at the beginning of the reporting period. |
INVESTMENTS
INVESTMENTS | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||
INVESTMENTS | INVESTMENTS | ||||||||||||||||||||||||
Investments of the Company’s insurance subsidiaries are subject to the insurance laws of the state of their incorporation. These laws prescribe the kind, quality and concentration of investments that may be made by insurance companies. In general, these laws permit investments, within specified limits and subject to certain qualifications, in federal, state and municipal obligations, corporate bonds, preferred and common stocks and real estate mortgages. The Company believes that it is in compliance with these laws. | |||||||||||||||||||||||||
The amortized cost and estimated fair value of securities available-for-sale as of December 31, 2014 and 2013 are as follows. All securities are classified as available-for-sale and are carried at fair value. | |||||||||||||||||||||||||
December 31, 2014 | Amortized | Gross | Gross | Estimated | |||||||||||||||||||||
cost | unrealized | unrealized | fair value | ||||||||||||||||||||||
gains | losses | ||||||||||||||||||||||||
Securities available-for-sale: | |||||||||||||||||||||||||
Fixed maturity securities: | |||||||||||||||||||||||||
U.S. treasury | $ | 9,574 | $ | 129 | $ | — | $ | 9,703 | |||||||||||||||||
U.S. government-sponsored agencies | 215,425 | 2,313 | 2,122 | 215,616 | |||||||||||||||||||||
Obligations of states and political subdivisions | 299,258 | 26,840 | 40 | 326,058 | |||||||||||||||||||||
Commercial mortgage-backed | 42,996 | 3,766 | — | 46,762 | |||||||||||||||||||||
Residential mortgage-backed | 100,296 | 1,402 | 3,745 | 97,953 | |||||||||||||||||||||
Other asset-backed | 14,798 | 1,213 | 6 | 16,005 | |||||||||||||||||||||
Corporate | 397,659 | 18,485 | 742 | 415,402 | |||||||||||||||||||||
Total fixed maturity securities | 1,080,006 | 54,148 | 6,655 | 1,127,499 | |||||||||||||||||||||
Equity securities: | |||||||||||||||||||||||||
Common stocks: | |||||||||||||||||||||||||
Financial services | 22,586 | 11,835 | 42 | 34,379 | |||||||||||||||||||||
Information technology | 15,755 | 11,110 | — | 26,865 | |||||||||||||||||||||
Healthcare | 14,673 | 12,179 | — | 26,852 | |||||||||||||||||||||
Consumer staples | 10,584 | 6,112 | 2 | 16,694 | |||||||||||||||||||||
Consumer discretionary | 11,304 | 11,420 | 33 | 22,691 | |||||||||||||||||||||
Energy | 15,837 | 7,458 | 432 | 22,863 | |||||||||||||||||||||
Industrials | 9,658 | 8,596 | 33 | 18,221 | |||||||||||||||||||||
Other | 11,493 | 4,563 | — | 16,056 | |||||||||||||||||||||
Non-redeemable preferred stocks | 12,082 | 617 | 284 | 12,415 | |||||||||||||||||||||
Total equity securities | 123,972 | 73,890 | 826 | 197,036 | |||||||||||||||||||||
Total securities available-for-sale | $ | 1,203,978 | $ | 128,038 | $ | 7,481 | $ | 1,324,535 | |||||||||||||||||
December 31, 2013 | Amortized | Gross | Gross | Estimated | |||||||||||||||||||||
cost | unrealized | unrealized | fair value | ||||||||||||||||||||||
gains | losses | ||||||||||||||||||||||||
Securities available-for-sale: | |||||||||||||||||||||||||
Fixed maturity securities: | |||||||||||||||||||||||||
U.S. treasury | $ | 9,540 | $ | 191 | $ | 319 | $ | 9,412 | |||||||||||||||||
U.S. government-sponsored agencies | 156,981 | 1,356 | 11,391 | 146,946 | |||||||||||||||||||||
Obligations of states and political subdivisions | 346,554 | 15,040 | 4,542 | 357,052 | |||||||||||||||||||||
Commercial mortgage-backed | 63,185 | 5,842 | 88 | 68,939 | |||||||||||||||||||||
Residential mortgage-backed | 96,058 | 1,073 | 2,952 | 94,179 | |||||||||||||||||||||
Other asset-backed | 11,456 | 1,192 | — | 12,648 | |||||||||||||||||||||
Corporate | 325,798 | 16,542 | 3,532 | 338,808 | |||||||||||||||||||||
Total fixed maturity securities | 1,009,572 | 41,236 | 22,824 | 1,027,984 | |||||||||||||||||||||
Equity securities: | |||||||||||||||||||||||||
Common stocks: | |||||||||||||||||||||||||
Financial services | 19,273 | 9,374 | 149 | 28,498 | |||||||||||||||||||||
Information technology | 12,645 | 6,301 | 29 | 18,917 | |||||||||||||||||||||
Healthcare | 12,801 | 9,144 | — | 21,945 | |||||||||||||||||||||
Consumer staples | 9,162 | 3,849 | — | 13,011 | |||||||||||||||||||||
Consumer discretionary | 10,722 | 10,309 | — | 21,031 | |||||||||||||||||||||
Energy | 14,102 | 7,341 | 326 | 21,117 | |||||||||||||||||||||
Industrials | 11,190 | 6,075 | 1 | 17,264 | |||||||||||||||||||||
Other | 13,358 | 4,489 | 36 | 17,811 | |||||||||||||||||||||
Non-redeemable preferred stocks | 10,582 | 316 | 644 | 10,254 | |||||||||||||||||||||
Total equity securities | 113,835 | 57,198 | 1,185 | 169,848 | |||||||||||||||||||||
Total securities available-for-sale | $ | 1,123,407 | $ | 98,434 | $ | 24,009 | $ | 1,197,832 | |||||||||||||||||
The following table sets forth the estimated fair value and gross unrealized losses associated with investment securities that were in an unrealized loss position as of December 31, 2014 and 2013, listed by length of time the securities were in an unrealized loss position. | |||||||||||||||||||||||||
December 31, 2014 | Less than twelve months | Twelve months or longer | Total | ||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||||||
value | losses | value | losses | value | losses | ||||||||||||||||||||
Fixed maturity securities: | |||||||||||||||||||||||||
U.S. government-sponsored agencies | $ | 24,473 | $ | 94 | $ | 97,446 | $ | 2,028 | $ | 121,919 | $ | 2,122 | |||||||||||||
Obligations of states and political subdivisions | — | — | 3,757 | 40 | 3,757 | 40 | |||||||||||||||||||
Commercial mortgage-backed | 1,102 | — | — | — | 1,102 | — | |||||||||||||||||||
Residential mortgage-backed | 21,451 | 1,252 | 21,163 | 2,493 | 42,614 | 3,745 | |||||||||||||||||||
Other asset-backed | 1,889 | 6 | — | — | 1,889 | 6 | |||||||||||||||||||
Corporate | 16,740 | 281 | 28,257 | 461 | 44,997 | 742 | |||||||||||||||||||
Total fixed maturity securities | 65,655 | 1,633 | 150,623 | 5,022 | 216,278 | 6,655 | |||||||||||||||||||
Equity securities: | |||||||||||||||||||||||||
Common stocks: | |||||||||||||||||||||||||
Financial services | 1,162 | 9 | 187 | 33 | 1,349 | 42 | |||||||||||||||||||
Consumer staples | 1,051 | 2 | — | — | 1,051 | 2 | |||||||||||||||||||
Consumer discretionary | 822 | 33 | — | — | 822 | 33 | |||||||||||||||||||
Energy | 4,298 | 432 | — | — | 4,298 | 432 | |||||||||||||||||||
Industrials | 1,406 | 33 | — | — | 1,406 | 33 | |||||||||||||||||||
Non-redeemable preferred stocks | — | — | 1,716 | 284 | 1,716 | 284 | |||||||||||||||||||
Total equity securities | 8,739 | 509 | 1,903 | 317 | 10,642 | 826 | |||||||||||||||||||
Total temporarily impaired securities | $ | 74,394 | $ | 2,142 | $ | 152,526 | $ | 5,339 | $ | 226,920 | $ | 7,481 | |||||||||||||
December 31, 2013 | Less than twelve months | Twelve months or longer | Total | ||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||||||
value | losses | value | losses | value | losses | ||||||||||||||||||||
Fixed maturity securities: | |||||||||||||||||||||||||
U.S. treasury | $ | 4,507 | $ | 319 | $ | — | $ | — | $ | 4,507 | $ | 319 | |||||||||||||
U.S. government-sponsored agencies | 93,856 | 8,120 | 24,053 | 3,271 | 117,909 | 11,391 | |||||||||||||||||||
Obligations of states and political subdivisions | 74,523 | 4,335 | 3,008 | 207 | 77,531 | 4,542 | |||||||||||||||||||
Commercial mortgage-backed | 10,551 | 88 | — | — | 10,551 | 88 | |||||||||||||||||||
Residential mortgage-backed | 44,243 | 2,482 | 4,600 | 470 | 48,843 | 2,952 | |||||||||||||||||||
Corporate | 81,292 | 2,704 | 10,547 | 828 | 91,839 | 3,532 | |||||||||||||||||||
Total fixed maturity securities | 308,972 | 18,048 | 42,208 | 4,776 | 351,180 | 22,824 | |||||||||||||||||||
Equity securities: | |||||||||||||||||||||||||
Common stocks: | |||||||||||||||||||||||||
Financial services | 2,801 | 149 | — | — | 2,801 | 149 | |||||||||||||||||||
Information technology | 610 | 29 | — | — | 610 | 29 | |||||||||||||||||||
Consumer staples | 30 | — | — | — | 30 | — | |||||||||||||||||||
Energy | 1,450 | 326 | — | — | 1,450 | 326 | |||||||||||||||||||
Industrials | 625 | 1 | — | — | 625 | 1 | |||||||||||||||||||
Other | 1,499 | 36 | — | — | 1,499 | 36 | |||||||||||||||||||
Non-redeemable preferred stocks | 2,121 | 128 | 1,484 | 516 | 3,605 | 644 | |||||||||||||||||||
Total equity securities | 9,136 | 669 | 1,484 | 516 | 10,620 | 1,185 | |||||||||||||||||||
Total temporarily impaired securities | $ | 318,108 | $ | 18,717 | $ | 43,692 | $ | 5,292 | $ | 361,800 | $ | 24,009 | |||||||||||||
Unrealized losses on fixed maturity securities decreased in nearly every asset class at December 31, 2014 due to the decline in interest rates during 2014. Most of these securities are considered investment grade by credit rating agencies. Because management does not intend to sell these securities, does not believe it will be required to sell these securities before recovery, and believes it will collect the amounts due on these securities, it was determined that these securities were not “other-than-temporarily” impaired at December 31, 2014. | |||||||||||||||||||||||||
No particular sector or individual security accounted for a material amount of unrealized losses on commons stocks at December 31, 2014. The Company believes the unrealized losses on common stocks are primarily due to general fluctuations in the equity markets. Because the Company has the ability and intent to hold these securities for a reasonable amount of time to allow for recovery, it was determined that these securities were not “other-than-temporarily” impaired at December 31, 2014. | |||||||||||||||||||||||||
All of the Company’s preferred stock holdings are perpetual preferred stocks. The Company evaluates perpetual preferred stocks with unrealized losses for “other-than-temporary” impairment similar to fixed maturity securities since they have debt-like characteristics such as periodic cash flows in the form of dividends and call features, are rated by rating agencies and are priced like other long-term callable fixed maturity securities. There was no evidence of any credit deterioration in the issuers of the preferred stocks and the Company does not intend to sell these securities before recovery, nor does it believe it will be required to sell these securities before recovery; therefore, it was determined that these securities were not “other-than-temporarily” impaired at December 31, 2014. | |||||||||||||||||||||||||
The amortized cost and estimated fair value of fixed maturity securities at December 31, 2014, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations, with or without call or prepayment penalties. | |||||||||||||||||||||||||
Amortized | Estimated | ||||||||||||||||||||||||
cost | fair value | ||||||||||||||||||||||||
Securities available-for-sale: | |||||||||||||||||||||||||
Due in one year or less | $ | 33,469 | $ | 33,945 | |||||||||||||||||||||
Due after one year through five years | 194,140 | 204,973 | |||||||||||||||||||||||
Due after five years through ten years | 223,145 | 229,778 | |||||||||||||||||||||||
Due after ten years | 485,960 | 514,088 | |||||||||||||||||||||||
Mortgage-backed securities | 143,292 | 144,715 | |||||||||||||||||||||||
Totals | $ | 1,080,006 | $ | 1,127,499 | |||||||||||||||||||||
A summary of realized investment gains and (losses) is as follows: | |||||||||||||||||||||||||
Year ended December 31, | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Fixed maturity securities available-for-sale: | |||||||||||||||||||||||||
Gross realized investment gains | $ | 979 | $ | 1,226 | $ | 795 | |||||||||||||||||||
Gross realized investment losses | (92 | ) | (725 | ) | (10 | ) | |||||||||||||||||||
"Other-than-temporary" impairments | (1 | ) | — | — | |||||||||||||||||||||
Equity securities available-for-sale: | |||||||||||||||||||||||||
Gross realized investment gains | 8,913 | 9,458 | 9,984 | ||||||||||||||||||||||
Gross realized investment losses | (1,727 | ) | (899 | ) | (2,566 | ) | |||||||||||||||||||
"Other-than-temporary" impairments | (877 | ) | (63 | ) | (186 | ) | |||||||||||||||||||
Other long-term investments: | |||||||||||||||||||||||||
Gross realized investment losses | (2,846 | ) | — | — | |||||||||||||||||||||
Totals | $ | 4,349 | $ | 8,997 | $ | 8,017 | |||||||||||||||||||
Gains and losses realized on the disposition of investments are included in net income. The cost of investments sold is determined on the specific identification method using the highest cost basis first. The realized investment losses recognized on other long-term investments during 2014 represent changes in the carrying value of a limited partnership that was purchased to implement an equity tail-risk hedging strategy. The amounts reported as “other-than-temporary” impairments do not include any individually significant items. The Company did not have any outstanding cumulative credit losses on fixed maturity securities that have been recognized in earnings from "other-than-temporary" impairments during any of the reported periods. | |||||||||||||||||||||||||
A summary of net investment income is as follows: | |||||||||||||||||||||||||
Year ended December 31, | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Interest on fixed maturity securities | $ | 41,932 | $ | 40,062 | $ | 41,699 | |||||||||||||||||||
Dividends on equity securities | 6,007 | 4,619 | 3,852 | ||||||||||||||||||||||
Interest on short-term investments | — | 27 | 129 | ||||||||||||||||||||||
Return on long-term investments | 297 | 22 | 12 | ||||||||||||||||||||||
Total investment income | 48,236 | 44,730 | 45,692 | ||||||||||||||||||||||
Securities litigation income | 107 | 219 | 58 | ||||||||||||||||||||||
Investment expenses | (1,878 | ) | (1,927 | ) | (1,605 | ) | |||||||||||||||||||
Net investment income | $ | 46,465 | $ | 43,022 | $ | 44,145 | |||||||||||||||||||
A summary of net changes in unrealized holding gains (losses) on securities available-for-sale is as follows: | |||||||||||||||||||||||||
Year ended December 31, | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Fixed maturity securities | $ | 29,081 | $ | (60,540 | ) | $ | 20,687 | ||||||||||||||||||
Deferred income tax expense (benefit) | 10,179 | (21,189 | ) | 7,240 | |||||||||||||||||||||
Total fixed maturity securities | 18,902 | (39,351 | ) | 13,447 | |||||||||||||||||||||
Equity securities | 17,051 | 27,571 | 8,008 | ||||||||||||||||||||||
Deferred income tax expense | 5,967 | 9,650 | 2,803 | ||||||||||||||||||||||
Total equity securities | 11,084 | 17,921 | 5,205 | ||||||||||||||||||||||
Total available-for-sale securities | $ | 29,986 | $ | (21,430 | ) | $ | 18,652 | ||||||||||||||||||
INCOME_TAXES
INCOME TAXES | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||
INCOME TAXES | INCOME TAXES | ||||||||||||
Temporary differences between the consolidated financial statement carrying amount and tax basis of assets and liabilities that give rise to significant portions of the deferred income tax asset (liability) at December 31, 2014 and 2013 are as follows: | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Loss reserve discounting | $ | 15,681 | $ | 17,690 | |||||||||
Unearned premium reserve limitation | 15,648 | 14,764 | |||||||||||
Other policyholders' funds payable | 3,553 | 2,972 | |||||||||||
Other, net | 1,145 | 1,761 | |||||||||||
Total deferred income tax asset | 36,027 | 37,187 | |||||||||||
Net unrealized holding gains on investment securities | (42,195 | ) | (26,049 | ) | |||||||||
Deferred policy acquisition costs | (13,770 | ) | (13,227 | ) | |||||||||
Retirement benefits | (5,712 | ) | (8,234 | ) | |||||||||
Other, net | (3,004 | ) | (2,499 | ) | |||||||||
Total deferred income tax liability | (64,681 | ) | (50,009 | ) | |||||||||
Net deferred income tax liability | $ | (28,654 | ) | $ | (12,822 | ) | |||||||
Based upon anticipated future taxable income and consideration of all other available evidence, management believes that it is “more likely than not” that the Company’s deferred income tax assets will be realized. | |||||||||||||
The actual income tax expense for the years ended December 31, 2014, 2013 and 2012 differed from the “expected” income tax expense for those years (computed by applying the United States federal corporate tax rate of 35 percent to income before income tax expense) as follows: | |||||||||||||
Year ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Computed "expected" income tax expense | $ | 14,318 | $ | 21,298 | $ | 18,072 | |||||||
Increases (decreases) in tax resulting from: | |||||||||||||
Tax-exempt interest income | (3,285 | ) | (3,828 | ) | (4,433 | ) | |||||||
Dividends received deduction | (828 | ) | (876 | ) | (723 | ) | |||||||
Proration of tax-exempt interest and dividends received deduction | 617 | 706 | 773 | ||||||||||
Other, net | 93 | 34 | (22 | ) | |||||||||
Total income tax expense | $ | 10,915 | $ | 17,334 | $ | 13,667 | |||||||
Comprehensive income tax expense included in the consolidated financial statements for the years ended December 31, 2014, 2013 and 2012 is as follows: | |||||||||||||
Year ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Income tax expense (benefit) on: | |||||||||||||
Operations | $ | 10,915 | $ | 17,334 | $ | 13,667 | |||||||
Change in unrealized holding gains on investment securities | 16,146 | (11,539 | ) | 10,043 | |||||||||
Change in funded status of retirement benefit plans: | |||||||||||||
Pension plans | (2,619 | ) | 5,498 | 598 | |||||||||
Postretirement benefit plans | (1,330 | ) | 12,103 | 350 | |||||||||
Comprehensive income tax expense | $ | 23,112 | $ | 23,396 | $ | 24,658 | |||||||
The Company had no provision for uncertain income tax positions at December 31, 2014 or 2013. The Company recognized $1 and $3 of interest income related to U.S. federal income taxes during 2014 and 2012, respectively. The Company did not recognize any interest expense or other penalties related to U.S. federal or state income taxes during 2014, 2013 or 2012. It is the Company’s accounting policy to reflect income tax penalties as other expense, and interest as interest expense. | |||||||||||||
The Company files a U.S. federal income tax return, along with various state income tax returns. The Company is no longer subject to U.S. federal and state income tax examinations by tax authorities for years before 2011. The Company's 2011 income tax return has been audited and no adjustments were proposed. |
SURPLUS_NOTES
SURPLUS NOTES | 12 Months Ended |
Dec. 31, 2014 | |
SURPLUS NOTES [Abstract] | |
SURPLUS NOTES | SURPLUS NOTES |
The Company’s property and casualty insurance subsidiaries have $25,000 of surplus notes issued to Employers Mutual. Effective February 1, 2013, the interest rate on the surplus notes was reduced to 1.35 percent from the previous rate of 3.60 percent. Reviews of the interest rate are conducted by the Inter-Company Committees of the boards of directors of the Company and Employers Mutual every five years, with the next review due in 2018. Payments of interest and repayments of principal can only be made out of the applicable subsidiary’s statutory surplus and are subject to prior approval by the insurance commissioner of the respective states of domicile. The surplus notes are subordinate and junior in right of payment to all obligations or liabilities of the applicable insurance subsidiaries. Total interest expense on these surplus notes was $337 in 2014, $384 in 2013 and $900 in 2012. At December 31, 2014, the Company’s property and casualty insurance subsidiaries had received approval for the payment of the 2014 interest expense on the surplus notes. |
EMPLOYEE_RETIREMENT_PLANS
EMPLOYEE RETIREMENT PLANS | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | |||||||||||||||||
EMPLOYEE RETIREMENT PLANS | |||||||||||||||||
12 | EMPLOYEE RETIREMENT PLANS | ||||||||||||||||
Employers Mutual has various employee benefit plans, including two defined benefit pension plans and two postretirement benefit plans that provide retiree healthcare and life insurance benefits. | |||||||||||||||||
Employers Mutual’s pension plans include a qualified defined benefit pension plan and a non-qualified defined benefit supplemental pension plan. The qualified defined benefit plan covers substantially all of its employees. This plan is funded by employer contributions and provides benefits under two different formulas, depending on an employee’s age and date of service. Benefits generally vest after three years of service or the attainment of 55 years of age. It is Employers Mutual’s funding policy to make contributions sufficient to be in compliance with minimum regulatory funding requirements plus additional amounts as determined by management. | |||||||||||||||||
Employers Mutual’s non-qualified defined benefit supplemental pension plan provides retirement benefits for a select group of management and highly-compensated employees. This plan enables select employees to receive retirement benefits without the limit on compensation imposed on qualified defined benefit pension plans by the Internal Revenue Service (IRS) and to recognize compensation that has been deferred in the determination of retirement benefits. The plan is unfunded and benefits generally vest after three years of service. | |||||||||||||||||
Employers Mutual also offers postretirement benefit plans which provide certain health care and life insurance benefits for retired employees. Substantially all of its employees may become eligible for those benefits if they reach normal retirement age and have attained the required length of service while working for Employers Mutual. Through 2014, the health care postretirement plan required contributions from participants and contained certain cost sharing provisions such as coinsurance and deductibles. On December 2, 2013, Employers Mutual notified its employees and retirees that effective January 1, 2015, the health care plan would be replaced with a new Employers Mutual - funded Health Reimbursement Arrangement (HRA). Under the HRA, Employers Mutual will reimburse participants for amounts expended to enroll in publicly available health care plans and/or pay for qualifying out-of-pocket health care costs, up to a pre-determined maximum per participant. The obligations of the HRA are based on the total amount of reimbursements expected to be made by Employers Mutual over the lives of the participants, rather than the total amount of medical benefits expected to be paid over the participants’ lives. Therefore, the obligations of the HRA are not impacted by changes in the cost of health care. As a result of this change, the postretirement benefit plans' benefit obligation decreased by $96,704 (the Company's share was $26,937) as of December 31, 2013. The life insurance plan is noncontributory. The benefits provided under both plans are subject to change. | |||||||||||||||||
Employers Mutual maintains a Voluntary Employee Beneficiary Association (VEBA) trust that has historically been used to accumulate funds for the payment of postretirement health care and life insurance benefits. Contributions to the VEBA trust have been used to fund the projected postretirement benefit obligation, as well as pay benefits. Due to the significant reduction in the projected benefit obligation that occurred at December 31, 2013 with the announcement of the conversion to the HRA, the funded status of the postretirement benefit plans moved from a large underfunded position to an overfunded position. Future contributions to the VEBA trust are not anticipated for the foreseeable future. | |||||||||||||||||
The following table sets forth the funded status of Employers Mutual’s pension and postretirement benefit plans as of December 31, 2014 and 2013, based upon measurement dates of December 31, 2014 and 2013, respectively. | |||||||||||||||||
Pension plans | Postretirement benefit plans | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Change in projected benefit obligation: | |||||||||||||||||
Benefit obligation at beginning of year | $ | 239,109 | $ | 247,290 | $ | 50,006 | $ | 155,102 | |||||||||
Service cost | 12,863 | 13,213 | 1,260 | 6,300 | |||||||||||||
Interest cost | 9,664 | 7,656 | 2,254 | 6,172 | |||||||||||||
Actuarial (gain) loss | 19,257 | (14,459 | ) | 3,516 | (18,582 | ) | |||||||||||
Benefits paid | (13,764 | ) | (14,591 | ) | (2,533 | ) | (2,588 | ) | |||||||||
Medicare subsidy reimbursements | — | — | — | 306 | |||||||||||||
Plan amendments | — | — | — | (96,704 | ) | ||||||||||||
Projected benefit obligation at end of year | 267,129 | 239,109 | 54,503 | 50,006 | |||||||||||||
Change in plan assets: | |||||||||||||||||
Fair value of plan assets at beginning of year | 288,750 | 240,034 | 67,276 | 57,815 | |||||||||||||
Actual return on plan assets | 15,029 | 48,623 | 4,547 | 11,549 | |||||||||||||
Employer contributions | 7,833 | 14,684 | — | 500 | |||||||||||||
Benefits paid | (13,764 | ) | (14,591 | ) | (2,533 | ) | (2,588 | ) | |||||||||
Fair value of plan assets at end of year | 297,848 | 288,750 | 69,290 | 67,276 | |||||||||||||
Funded status | $ | 30,719 | $ | 49,641 | $ | 14,787 | $ | 17,270 | |||||||||
The following tables set forth the amounts recognized in the Company’s financial statements as a result of the property and casualty insurance subsidiaries’ aggregate 30 percent participation in the pooling agreement and amounts allocated to the reinsurance subsidiary as of December 31, 2014 and 2013: | |||||||||||||||||
Amounts recognized in the Company’s consolidated balance sheets: | |||||||||||||||||
Pension plans | Postretirement benefit plans | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Assets: | |||||||||||||||||
Prepaid pension and postretirement benefits | $ | 13,267 | $ | 18,310 | $ | 4,093 | $ | 4,811 | |||||||||
Liability: | |||||||||||||||||
Pension and postretirement benefits | (4,162 | ) | (3,401 | ) | — | — | |||||||||||
Net amount recognized | $ | 9,105 | $ | 14,909 | $ | 4,093 | $ | 4,811 | |||||||||
Amounts recognized in the Company’s consolidated balance sheets under the caption “accumulated other comprehensive income”, before deferred income taxes: | |||||||||||||||||
Pension plans | Postretirement benefit plans | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Net actuarial loss | $ | (15,097 | ) | $ | (7,606 | ) | $ | (7,258 | ) | $ | (6,827 | ) | |||||
Prior service (cost) credit | (25 | ) | (34 | ) | 27,458 | 30,828 | |||||||||||
Net amount recognized | $ | (15,122 | ) | $ | (7,640 | ) | $ | 20,200 | $ | 24,001 | |||||||
During 2015, the Company will amortize $641 of net actuarial loss and $10 of prior service cost associated with the pension plans into net periodic benefit cost. In addition, the Company will amortize $494 of net actuarial loss and $3,317 of prior service credit associated with the postretirement benefit plans into net periodic postretirement benefit income in 2015. | |||||||||||||||||
Amounts recognized in the Company’s consolidated statements of comprehensive income, before deferred income taxes: | |||||||||||||||||
Pension plans | Postretirement benefit plans | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Net actuarial gain (loss) | $ | (7,492 | ) | $ | 15,694 | $ | (431 | ) | $ | 8,306 | |||||||
Prior service (cost) credit | 10 | 15 | (3,370 | ) | 26,274 | ||||||||||||
Net amount recognized | $ | (7,482 | ) | $ | 15,709 | $ | (3,801 | ) | $ | 34,580 | |||||||
The following table sets forth the projected benefit obligation, accumulated benefit obligation and fair value of plan assets of Employers Mutual’s non-qualified pension plan. The amounts related to the qualified pension plan are not included since the plan assets exceeded the accumulated benefit obligation. | |||||||||||||||||
Year ended December 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Projected benefit obligation | $ | 13,057 | $ | 10,856 | |||||||||||||
Accumulated benefit obligation | 12,121 | 10,485 | |||||||||||||||
Fair value of plan assets | — | — | |||||||||||||||
The components of net periodic benefit cost (income) for Employers Mutual’s pension and postretirement benefit plans is as follows: | |||||||||||||||||
Year ended December 31, | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Pension plans: | |||||||||||||||||
Service cost | $ | 12,863 | $ | 13,213 | $ | 12,386 | |||||||||||
Interest cost | 9,664 | 7,656 | 8,819 | ||||||||||||||
Expected return on plan assets | (20,733 | ) | (17,150 | ) | (14,926 | ) | |||||||||||
Amortization of net actuarial loss | 366 | 5,962 | 6,809 | ||||||||||||||
Amortization of prior service cost | 31 | 50 | 291 | ||||||||||||||
Net periodic pension benefit cost | $ | 2,191 | $ | 9,731 | $ | 13,379 | |||||||||||
Postretirement benefit plans: | |||||||||||||||||
Service cost | $ | 1,260 | $ | 6,300 | $ | 6,150 | |||||||||||
Interest cost | 2,254 | 6,172 | 6,537 | ||||||||||||||
Expected return on plan assets | (4,396 | ) | (3,631 | ) | (3,219 | ) | |||||||||||
Amortization of net actuarial loss | 1,651 | 3,694 | 4,008 | ||||||||||||||
Amortization of prior service credit | (11,466 | ) | (2,491 | ) | (2,131 | ) | |||||||||||
Net periodic postretirement benefit cost (income) | $ | (10,697 | ) | $ | 10,044 | $ | 11,345 | ||||||||||
The net periodic postretirement benefit income recognized on Employers Mutual's postretirement benefit plans during 2014 is due to a plan amendment that was announced in the fourth quarter of 2013. This plan amendment generated a large prior service credit that is being amortized into net periodic benefit cost over a period of 10 years. In addition, the service cost and interest cost components of net periodic benefit cost of the revised plan declined significantly. | |||||||||||||||||
Net periodic pension benefit cost allocated to the Company amounted to $680, $3,013 and $4,115 in 2014, 2013 and 2012, respectively. Net periodic postretirement benefit cost (income) allocated to the Company for the years ended December 31, 2014, 2013 and 2012 amounted to $(3,083), $2,912, and $3,287, respectively. | |||||||||||||||||
The weighted-average assumptions used to measure the benefit obligations are as follows: | |||||||||||||||||
Year ended December 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Pension plans: | |||||||||||||||||
Discount rate | 3.57 | % | 4.17 | % | |||||||||||||
Rate of compensation increase: | |||||||||||||||||
Qualified pension plan | 4.73 | % | 4.73 | % | |||||||||||||
Non-qualified pension plan | 4.68 | % | 4.68 | % | |||||||||||||
Postretirement benefit plans: | |||||||||||||||||
Discount rate | 4.04 | % | 4.71 | % | |||||||||||||
The weighted-average assumptions used to measure the net periodic benefit costs are as follows: | |||||||||||||||||
Year ended December 31, | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Pension plans: | |||||||||||||||||
Discount rate | 4.17 | % | 3.24 | % | 4.13 | % | |||||||||||
Expected long-term rate of return on plan assets | 7.25 | % | 7.25 | % | 7.25 | % | |||||||||||
Rate of compensation increase: | |||||||||||||||||
Qualified pension plan | 4.73 | % | 4.73 | % | 4.73 | % | |||||||||||
Non-qualified pension plan | 4.68 | % | 4.68 | % | 4.68 | % | |||||||||||
Postretirement benefit plans: | |||||||||||||||||
Discount rate | 4.71 | % | 4.03 | % | 4.59 | % | |||||||||||
Expected long-term rate of return on plan assets | 6.75 | % | 6.5 | % | 6.25 | % | |||||||||||
The expected long-term rates of return on plan assets were developed considering actual historical results, current and expected market conditions, plan asset mix and management’s investment strategy. Due to the planned conversion of the postretirement health care plan to an HRA effective January 1, 2015, an assumption for the health care cost trend rate is no longer necessary. | |||||||||||||||||
Year ended December 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Assumed health care cost trend rate: | |||||||||||||||||
Health care cost trend rate assumed for next year | N/A | 7.5 | % | ||||||||||||||
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) | N/A | 5 | % | ||||||||||||||
Year that the rate reaches the ultimate trend rate | N/A | 2024 | |||||||||||||||
The following benefit payments, which reflect expected future service, are expected to be paid from the plans over the next ten years: | |||||||||||||||||
Pension benefits | Postretirement benefits | ||||||||||||||||
2015 | $ | 23,982 | $ | 2,698 | |||||||||||||
2016 | 21,655 | 2,861 | |||||||||||||||
2017 | 21,601 | 2,966 | |||||||||||||||
2018 | 22,418 | 3,172 | |||||||||||||||
2019 | 23,668 | 3,259 | |||||||||||||||
2020 - 2024 | 119,109 | 16,966 | |||||||||||||||
The Company manages its VEBA trust assets internally. Assets contained in the VEBA trust to fund Employers Mutual’s postretirement benefit obligations are currently invested in universal life insurance policies (issued by EMC National Life Company, an affiliate of Employers Mutual), mutual funds and an exchange-traded fund (ETF). The mutual funds are fixed income, international equity and domestic equity funds. The ETF is an emerging markets fund. | |||||||||||||||||
See Note 8 for a discussion on fair value measurement. The following is a description of the fair value pricing techniques used for the asset classes of Employers Mutual’s VEBA trust. | |||||||||||||||||
• | Money Market Fund: Valued at amortized cost, which approximates fair value. Under this method, investments purchased at a discount or premium are valued by accreting or amortizing the difference between the original purchase price and maturity value of the issue over the period to maturity. The net asset value of each share held by the trust at year-end was $1.00. | ||||||||||||||||
• | Mutual Funds: Valued at the net asset value of shares held by the trust at year-end. For purposes of calculating the net asset value, portfolio securities and other assets for which market quotes are readily available are valued at fair value. Fair value is generally determined on the basis of last reported sales prices, or if no sales are reported, based on quotes obtained from a quotation reporting system, established market makers, or independent pricing services. | ||||||||||||||||
• | ETF: Valued at the closing price from the applicable exchange. | ||||||||||||||||
• | Life Insurance Contract: Valued at the cash accumulation value, which approximates fair value. | ||||||||||||||||
The fair values of the assets held in Employers Mutual’s VEBA trust are as follows: | |||||||||||||||||
Fair value measurements using | |||||||||||||||||
December 31, 2014 | Total | Quoted | Significant | Significant | |||||||||||||
prices in | other | unobservable | |||||||||||||||
active markets | observable | inputs | |||||||||||||||
for identical | inputs | (Level 3) | |||||||||||||||
assets | (Level 2) | ||||||||||||||||
(Level 1) | |||||||||||||||||
Money market fund | $ | 4,644 | $ | 4,644 | $ | — | $ | — | |||||||||
Emerging markets ETF | 4,187 | 4,187 | — | — | |||||||||||||
Mutual funds: | |||||||||||||||||
Equity | 36,451 | 36,451 | — | — | |||||||||||||
Tax-exempt fixed income | 3,425 | 3,425 | — | — | |||||||||||||
International equity | 7,175 | 7,175 | — | — | |||||||||||||
Life insurance contracts | 13,408 | — | — | 13,408 | |||||||||||||
Total benefit plan assets | $ | 69,290 | $ | 55,882 | $ | — | $ | 13,408 | |||||||||
Fair value measurements using | |||||||||||||||||
December 31, 2013 | Total | Quoted | Significant | Significant | |||||||||||||
prices in | other | unobservable | |||||||||||||||
active markets | observable | inputs | |||||||||||||||
for identical | inputs | (Level 3) | |||||||||||||||
assets | (Level 2) | ||||||||||||||||
(Level 1) | |||||||||||||||||
Money market fund | $ | 575 | $ | 575 | $ | — | $ | — | |||||||||
Emerging markets ETF | 3,224 | 3,224 | — | — | |||||||||||||
Mutual funds: | |||||||||||||||||
Equity | 39,710 | 39,710 | — | — | |||||||||||||
Tax-exempt fixed income | 2,865 | 2,865 | — | — | |||||||||||||
International equity | 7,675 | 7,675 | — | — | |||||||||||||
Life insurance contracts | 13,227 | — | — | 13,227 | |||||||||||||
Total benefit plan assets | $ | 67,276 | $ | 54,049 | $ | — | $ | 13,227 | |||||||||
Presented below is a reconciliation of the assets measured at fair value using significant unobservable inputs (Level 3) for the years ended December 31, 2014 and 2013. | |||||||||||||||||
Fair value measurements | |||||||||||||||||
using significant | |||||||||||||||||
unobservable inputs (Level 3) | |||||||||||||||||
Life insurance contracts | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Balance at beginning of year | $ | 13,227 | $ | 12,872 | |||||||||||||
Actual return on plan assets: | |||||||||||||||||
Increase in cash accumulation value of life insurance contracts | 367 | 355 | |||||||||||||||
Gain on life insurance death benefit | 89 | — | |||||||||||||||
Settlement of life insurance death benefit | (275 | ) | — | ||||||||||||||
Balance at end of year | $ | 13,408 | $ | 13,227 | |||||||||||||
Employers Mutual uses Global Portfolio Strategies, Inc. to advise on the asset allocation strategy for its qualified pension plan. The asset allocation strategy and process of Global Portfolio Strategies, Inc. uses a diversified allocation of equity, debt and real estate exposures that is customized to the plan’s payment risk and return targets. | |||||||||||||||||
Global Portfolio Strategies, Inc. reviews the plan’s assets and liabilities in relation to expectations of long-term market performance and liability development to determine the appropriate asset allocation. The data for the contributions and emerging liabilities is provided from the plan’s actuarial valuation, while the current asset and monthly benefit payment data is provided by the plan record keeper. | |||||||||||||||||
The following is a description of the fair value pricing techniques used for the asset classes of Employers Mutual’s qualified pension plan. | |||||||||||||||||
• | Pooled Separate Accounts: Each of the funds held by the Plan is in a pooled or commingled investment vehicle that is maintained by the fund sponsor, each with many investors. The Plan asset is represented by a “unit of account” and a per unit value, much like a mutual fund, whose value is the accumulated value of the underlying investments. The sponsor of the fund specifies the source(s) used for the underlying investment asset prices and the protocol used to value each fund. These underlying investments are valued in the following ways: | ||||||||||||||||
◦ | Short-Term Funds are comprised of short-term securities that are valued initially at cost and thereafter adjusted for amortization of any discount or premium. | ||||||||||||||||
◦ | U.S. Stock Funds are comprised of domestic equity securities that are priced using the closing price from the applicable exchange. | ||||||||||||||||
◦ | International Stock Funds are comprised of international equity securities that are priced using the closing price from the appropriate local stock exchange(s). An independent pricing service is also used to seek updated prices in the event there are material market movements between local stock exchange closing time and portfolio valuation time. | ||||||||||||||||
◦ | U.S. Bond Funds are comprised of domestic fixed income securities. These securities are priced using inputs such as benchmark yields, reported trades, broker/dealer quotes, and issuer spreads. Market indices and industry and economic events are monitored. | ||||||||||||||||
• | Real Estate Securities Fund: Valued at the net asset value of shares held by the Plan at year-end. For purposes of calculating the net asset value, portfolio securities and other assets for which market quotes are readily available are valued at fair value. Fair value is generally determined on the basis of last reported sales prices, or if no sales are reported, based on quotes obtained from a quotation reporting system, established market makers, or independent pricing services. | ||||||||||||||||
• | Bond and Mortgage Separate Account: Invests mainly in fixed income securities such as asset-backed securities, residential mortgage-backed securities, commercial mortgage-backed securities and corporate bonds. Securities are priced by an independent pricing service using inputs such as benchmark yields, reported trades, broker/dealer quotes, and issuer spreads. Market indices and industry and economic events are also monitored. | ||||||||||||||||
The fair values of the assets held in Employers Mutual’s defined benefit retirement plan are as follows: | |||||||||||||||||
Fair value measurements using | |||||||||||||||||
December 31, 2014 | Total | Quoted | Significant | Significant | |||||||||||||
prices in | other | unobservable | |||||||||||||||
active markets | observable | inputs | |||||||||||||||
for identical | inputs | (Level 3) | |||||||||||||||
assets | (Level 2) | ||||||||||||||||
(Level 1) | |||||||||||||||||
Bond and mortgage separate account | $ | 34,901 | $ | — | $ | 34,901 | $ | — | |||||||||
Pooled separate accounts: | |||||||||||||||||
U.S. stock funds | 119,577 | — | 119,577 | — | |||||||||||||
International stock funds | 57,955 | — | 57,955 | — | |||||||||||||
U.S. bond funds | 63,443 | — | 63,443 | — | |||||||||||||
Real estate fund | 17,735 | — | 17,735 | — | |||||||||||||
Short-term funds | 4,237 | — | 4,237 | — | |||||||||||||
Total benefit plan assets | $ | 297,848 | $ | — | $ | 297,848 | $ | — | |||||||||
Fair value measurements using | |||||||||||||||||
December 31, 2013 | Total | Quoted | Significant | Significant | |||||||||||||
prices in | other | unobservable | |||||||||||||||
active markets | observable | inputs | |||||||||||||||
for identical | inputs | (Level 3) | |||||||||||||||
assets | (Level 2) | ||||||||||||||||
(Level 1) | |||||||||||||||||
Bond and mortgage separate account | $ | 32,843 | $ | — | $ | 32,843 | $ | — | |||||||||
Pooled separate accounts: | |||||||||||||||||
U.S. stock funds | 110,279 | — | 110,279 | — | |||||||||||||
International stock funds | 62,840 | — | 62,840 | — | |||||||||||||
U.S. bond funds | 60,200 | — | 60,200 | — | |||||||||||||
Real estate fund | 13,758 | — | 13,758 | — | |||||||||||||
Short-term funds | 7,672 | — | 7,672 | — | |||||||||||||
Real estate securities fund | 1,158 | 1,158 | — | — | |||||||||||||
Total benefit plan assets | $ | 288,750 | $ | 1,158 | $ | 287,592 | $ | — | |||||||||
Employers Mutual plans to contribute approximately $7,000 to the pension plan in 2015. No contributions are expected to be made to the VEBA trust in 2015. | |||||||||||||||||
The Company participates in other benefit plans sponsored by Employers Mutual, including its 401(k) Plan, Board and Executive Non-Qualified Excess Plans and Defined Contribution Supplemental Executive Retirement Plan. The Company’s share of expenses for these plans amounted to $1,688, $1,457 and $1,823 in 2014, 2013 and 2012, respectively. |
STOCKBASED_COMPENSATION
STOCK-BASED COMPENSATION | 12 Months Ended | |||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||||||||||
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION | |||||||||||||||||||||
The Company has no stock-based compensation plans of its own; however, Employers Mutual has several stock plans which utilize the common stock of the Company. Employers Mutual can provide the common stock required under its plans by: 1) using shares of common stock that it currently owns; 2) purchasing common stock on the open market; or 3) directly purchasing common stock from the Company at the current fair value. Employers Mutual has historically purchased common stock from the Company for use in its stock plans and its non-employee director stock plans. Beginning with the second quarter 2014 purchase, Employers Mutual is also purchasing common stock from the Company to fulfill its obligations under its employee stock purchase plan (previously the shares needed for this were purchased on the open market). | ||||||||||||||||||||||
Stock Plans | ||||||||||||||||||||||
Employers Mutual currently maintains two separate stock plans for the benefit of officers and key employees of Employers Mutual and its subsidiaries. A total of 1,500,000 shares of the Company’s common stock have been reserved for issuance under the 2003 Employers Mutual Casualty Company Incentive Stock Option Plan (2003 Plan) and a total of 2,000,000 shares have been reserved for issuance under the 2007 Employers Mutual Casualty Company Stock Incentive Plan (2007 Plan). A third stock plan, the 1993 Employers Mutual Casualty Company Incentive Stock Option Plan (1993 Plan), is no longer active. The time period for exercising options granted under the 1993 Plan expired during 2012. A total of 105,120 shares reserved for issuance under the 1993 Plan were deregistered on April 26, 2013. | ||||||||||||||||||||||
The 2003 Plan permits the issuance of incentive stock options only, while the 2007 Plan permits the issuance of performance shares, performance units, and other stock-based awards, in addition to qualified (incentive) and non-qualified stock options, stock appreciation rights, restricted stock and restricted stock units. Both plans provide for a ten-year time limit for granting awards. No additional options can be granted under the 2003 Plan due to the expiration of the term of the plan. Options granted under the plans generally have a vesting period of five years, with options becoming exercisable in equal annual cumulative increments commencing on the first anniversary of the option grant. Option prices cannot be less than the fair value of the common stock on the date of grant. | ||||||||||||||||||||||
Beginning in 2013, Employers Mutual's compensation committee began issuing restricted stock, rather than stock options. With the exception of death or permanent disability, any unvested shares of restricted stock are forfeited on termination of employment, including retirement. Restricted stock awards granted under the 2007 Plan generally have a vesting period of four years, with shares vesting in equal annual cumulative increments commencing on the first anniversary of the grant. Holders of unvested shares receive compensation income equal to the amount of any dividends declared. | ||||||||||||||||||||||
The Senior Executive Compensation and Stock Option Committee (the “Committee”) of Employers Mutual’s Board of Directors (the “Board”) grants the awards and is the administrator of the plans. The Company’s Compensation Committee must consider and approve all awards granted to the Company’s executive officers. | ||||||||||||||||||||||
The Company recognized compensation expense from these plans of $357 ($233 net of tax), $289 ($190 net of tax) and $240 ($174 net of tax) in 2014, 2013 and 2012, respectively. | ||||||||||||||||||||||
A summary of the stock option activity under Employers Mutual’s stock plans for 2014, 2013 and 2012 is as follows: | ||||||||||||||||||||||
Year ended December 31, | ||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||
Number | Weighted- | Number | Weighted- | Number | Weighted- | |||||||||||||||||
of | average | of | average | of | average | |||||||||||||||||
options | exercise | options | exercise | options | exercise | |||||||||||||||||
price | price | price | ||||||||||||||||||||
Outstanding, beginning of year | 1,135,207 | $ | 22.17 | 1,588,958 | $ | 21.89 | 1,437,095 | $ | 21.92 | |||||||||||||
Granted | — | — | — | — | 263,162 | 20.98 | ||||||||||||||||
Exercised | (200,304 | ) | 21.36 | (406,532 | ) | 21.26 | (42,619 | ) | 17.97 | |||||||||||||
Expired | (22,945 | ) | 22.52 | (47,219 | ) | 20.35 | (68,680 | ) | 21.51 | |||||||||||||
Forfeited | (10,825 | ) | 22.94 | — | — | — | — | |||||||||||||||
Outstanding, end of year | 901,133 | $ | 22.34 | 1,135,207 | $ | 22.17 | 1,588,958 | $ | 21.89 | |||||||||||||
Exercisable, end of year | 642,464 | $ | 22.41 | 686,863 | $ | 22.37 | 894,706 | $ | 21.96 | |||||||||||||
Employers Mutual uses the average of the high and low trading prices of the Company's stock on the date of grant to determine the fair value of its restricted stock awards. Employers Mutual estimated the fair value of the 2012 option grant on the date of grant using the Black-Scholes-Merton option-pricing model with the following weighted-average assumptions: | ||||||||||||||||||||||
Year ended December 31, | ||||||||||||||||||||||
2012 | ||||||||||||||||||||||
Estimated dividend yield | 3.81 | % | ||||||||||||||||||||
Expected volatility | 25.2% - 44.7% | |||||||||||||||||||||
Weighted-average volatility | 35.61 | % | ||||||||||||||||||||
Risk-free interest rate | 0.06% - 1.51% | |||||||||||||||||||||
Expected term (years) | 0.25 - 6.40 | |||||||||||||||||||||
The expected term of the options granted to individuals who were not eligible to retire as of the grant date was estimated using historical data that excluded certain option exercises that occurred prior to the normal vesting period due to the retirement of the option holders. The expected term used for options granted to individuals who were eligible to retire as of the grant date was three months, reflecting the fact that upon retirement all unvested options immediately become vested, and the option holder has 90 days to exercise his or her outstanding options. | ||||||||||||||||||||||
The expected volatility of options granted to individuals who were not eligible to retire as of the grant date was computed by using the historical daily prices of the Company’s common stock for a period covering the most recent 6.4 years, which approximates the average term of the options. The expected volatility of options granted to individuals who were eligible to retire as of the grant date was computed by using the historical daily prices for the most recent 90 days. | ||||||||||||||||||||||
At December 31, 2014, the Company’s portion of the unrecognized compensation cost associated with option awards issued under Employers Mutual’s stock plans that are not currently vested was $194, with a 1.56 year weighted-average period over which the compensation expense is expected to be recognized. At December 31, 2014, the Company’s portion of the unrecognized compensation cost associated with restricted stock awards issued under Employers Mutual’s stock plans that are not currently vested was $690, with a 2.76 year weighted-average period over which the compensation expense is expected to be recognized. A summary of non-vested restricted stock activity under Employers Mutual’s stock plans for 2014 and 2013 is as follows: | ||||||||||||||||||||||
Year ended December 31, | ||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||
Number | Weighted- | Number | Weighted- | |||||||||||||||||||
of | average | of | average | |||||||||||||||||||
awards | grant-date | awards | grant-date | |||||||||||||||||||
fair value | fair value | |||||||||||||||||||||
Non-vested, beginning of year | 56,668 | $ | 25.9 | — | $ | — | ||||||||||||||||
Granted | 62,764 | 30.74 | 57,720 | 25.9 | ||||||||||||||||||
Vested | (14,117 | ) | 25.9 | — | — | |||||||||||||||||
Forfeited | (1,375 | ) | 26.61 | (1,052 | ) | 25.9 | ||||||||||||||||
Non-vested, end of year | 103,940 | $ | 28.81 | 56,668 | $ | 25.9 | ||||||||||||||||
The Company’s portion of the total intrinsic value of options exercised under Employers Mutual’s stock plans was $606, $844 and $54 in 2014, 2013 and 2012, respectively. Under the terms of the pooling and quota share agreements, these amounts were paid to Employers Mutual. The Company receives the full fair value, as of the exercise date, for all shares issued in connection with option exercises. The Company also receives the full fair value, as of the grant date, for all shares issued in connection with the grant of restricted stock awards. The Company's portion of the total fair value of restricted stock awards that vested in 2014 was $110 (no restricted stock awards vested prior to 2014). Additional information relating to options outstanding and options vested (exercisable) at December 31, 2014 is as follows: | ||||||||||||||||||||||
December 31, 2014 | ||||||||||||||||||||||
Number of options | Weighted-average exercise price | Aggregate intrinsic value | Weighted-average remaining term | |||||||||||||||||||
Options outstanding | 901,133 | $ | 22.34 | $ | 11,164 | 4.3 | ||||||||||||||||
Options exercisable | 642,464 | $ | 22.41 | $ | 7,912 | 3.61 | ||||||||||||||||
The 2003 Plan does not generally generate income tax deductions for the Company because only incentive stock options could be issued under the plan. The Company has recorded a deferred income tax benefit for a portion of the compensation expense associated with the March 2008 grant and for all subsequent grants (all made under the 2007 Plan) because non-qualified options and restricted stock awards were issued. The Company’s portion of the current income tax deduction realized from exercises of non-qualified stock options was $152, $165 and $2 in 2014, 2013 and 2012, respectively. These actual deductions are generally in excess of the deferred tax benefits recorded in conjunction with the compensation expense (referred to as excess tax benefits) and are reflected in the statement of cash flows as a financing cash inflow (outflow if less) with an offsetting cash flow from operating activities of $103, $96 and $(3) as the Company’s portion in 2014, 2013 and 2012, respectively. The income tax benefit that results from disqualifying dispositions of stock purchased through the exercise of incentive stock options is deemed immaterial. | ||||||||||||||||||||||
Employee Stock Purchase Plan | ||||||||||||||||||||||
On May 30, 2008, the Company registered 500,000 shares of the Company’s common stock for use in the Employers Mutual Casualty Company 2008 Employee Stock Purchase Plan. All employees are eligible to participate in the plan. An employee may participate in the plan by delivering, during the first twenty days of the calendar month preceding the first day of an election period, a payroll deduction authorization to the plan administrator; or making a cash contribution (employees designated as “Insiders” are required to give six months advance notice prior to participating in the plan). Participants pay 85 percent of the fair market value of the stock on the date of purchase. The plan is administered by the Board of Employers Mutual, and the Board has the right to amend or terminate the plan at any time; however, no such amendment or termination shall adversely affect the rights and privileges of participants. Expenses allocated to the Company in connection with this plan totaled $35, $45 and $39 in 2014, 2013 and 2012, respectively. | ||||||||||||||||||||||
During 2014, shares were purchased under the plan at prices ranging from $24.93 to $30.32. Activity under the plan was as follows: | ||||||||||||||||||||||
Year ended December 31, | ||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||
Shares available for purchase, beginning of year | 339,166 | 370,400 | 407,102 | |||||||||||||||||||
Shares purchased under the plan | (24,860 | ) | (31,234 | ) | (36,702 | ) | ||||||||||||||||
Shares available for purchase, end of year | 314,306 | 339,166 | 370,400 | |||||||||||||||||||
Non-Employee Director Stock Purchase Plan | ||||||||||||||||||||||
On March 14, 2013, the Company registered 200,000 shares of the Company’s common stock for issuance under the 2013 Employers Mutual Casualty Company Non-Employee Director Stock Purchase Plan. All non-employee directors of Employers Mutual and its subsidiaries and affiliates are eligible to participate in the plan. Each eligible director can purchase shares of common stock at 75 percent of the fair value of the stock on the exercise date in an amount equal to a minimum of 25 percent and a maximum of 100 percent of their annual cash retainer. The plan will continue through the period of the 2023 annual meetings. The plan is administered by the Corporate Governance and Nominating Committee of the Board of Directors of Employers Mutual. The Board may amend or terminate the plan at any time; however, no such amendment or termination shall adversely affect the rights and privileges of the participants. The 2003 Employers Mutual Casualty Company Non-Employee Director Stock Option Plan is no longer active. All outstanding options granted under this plan expired in May, 2013, and no further options can be granted due to the expiration of the term of the plan. On April 26, 2013, a total of 148,204 shares reserved for issuance under the 2003 Employers Mutual Casualty Company Non-Employee Director Stock Option Plan were deregistered. Expenses allocated to the Company in connection with this plan totaled $49, $36 and $22 in 2014, 2013 and 2012, respectively. | ||||||||||||||||||||||
During 2014, shares were purchased under the plan at prices ranging from $21.56 to $24.31. Activity under the plan was as follows: | ||||||||||||||||||||||
Year ended December 31, | ||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||
Shares available for purchase, beginning of year | 196,165 | 149,404 | 155,467 | |||||||||||||||||||
Shares registered for use in the 2013 plan | — | 200,000 | — | |||||||||||||||||||
Shares deregistered under the 2003 plan | — | (148,204 | ) | — | ||||||||||||||||||
Shares purchased under the plan | (9,626 | ) | (5,035 | ) | (6,063 | ) | ||||||||||||||||
Shares available for purchase, end of year | 186,539 | 196,165 | 149,404 | |||||||||||||||||||
Dividend Reinvestment Plan | ||||||||||||||||||||||
The Company maintains a dividend reinvestment and common stock purchase plan (the “Plan”) which provides stockholders with the option of reinvesting cash dividends in additional shares of the Company’s common stock. Participants can also purchase additional shares of common stock without incurring broker commissions by making optional cash contributions to the plan, and sell shares of common stock through the plan. | ||||||||||||||||||||||
Effective March 14, 2012, the Company’s Board of Directors temporarily suspended the issuance of shares of common stock under the Plan. Accordingly, on March 26, 2012, a total of 161,185 shares reserved under the Company's dividend reinvestment and common stock purchase plan were deregistered. As a result, dividend reinvestments and optional cash purchases were temporarily not permitted under the Plan. The temporary suspension of the issuance of shares of common stock under the Plan was due to a late filing of an amendment to a Current Report on Form 8-K. On March 29, 2013, the Company filed a Form S-3 Registration Statement with the Securities and Exchange Commission registering 661,185 shares of common stock for use in the Plan, which was reinstated for the third quarter dividend payment. | ||||||||||||||||||||||
Employers Mutual did not participate in this plan in 2014, 2013 or 2012. Activity under the plan was as follows: | ||||||||||||||||||||||
Year ended December 31, | ||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||
Shares available for purchase, beginning of year | 658,957 | — | 161,236 | |||||||||||||||||||
Shares registered for use in the plan | — | 661,185 | — | |||||||||||||||||||
Shares deregistered under the plan | — | — | (161,185 | ) | ||||||||||||||||||
Shares purchased under the plan | (4,139 | ) | (2,228 | ) | (51 | ) | ||||||||||||||||
Shares available for purchase, end of year | 654,818 | 658,957 | — | |||||||||||||||||||
Lowest purchase price | $ | 28.03 | $ | 28.11 | $ | 21.38 | ||||||||||||||||
Highest purchase price | $ | 35.39 | $ | 31.47 | $ | 23.22 | ||||||||||||||||
Stock Appreciation Rights (SAR) agreement | ||||||||||||||||||||||
On October 19, 2006, Employers Mutual entered into a stock appreciation rights (SAR) agreement with the Company’s Executive Vice President and Chief Operating Officer (Mr. Murray) at that time. Because the SAR agreement will be settled in cash, it is considered to be a liability-classified award under ASC Topic 718. As a result, the value of this agreement must be re-measured at fair value at each financial statement reporting date, subject to a minimum fair value stipulated in the SAR agreement. The full value of this agreement was expensed in 2006 because Mr. Murray was eligible for retirement and was entitled to keep the award at retirement, and as a result, the award did not have any subsequent service requirements. Subsequent changes in the fair value of this agreement are reflected as compensation expense, until the agreement is ultimately settled in 2016. Expenses allocated to the Company during 2014 associated with this award totaled $15. The Company did not recognize any compensation expense related to this award during either 2013 or 2012 because the fair value of the award did not exceed the floor amount in the agreement. |
ACCUMULATED_OTHER_COMPREHENSIV
ACCUMULATED OTHER COMPREHENSIVE INCOME | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME | ACCUMULATED OTHER COMPREHENSIVE INCOME | ||||||||||||
The Company has available-for-sale securities and receives an allocation of the actuarial losses and net prior service credits associated with Employers Mutual’s pension and postretirement benefit plans, both of which generate accumulated other comprehensive income (loss) amounts. The following table reconciles, by component, the beginning and ending balances of accumulated other comprehensive income. | |||||||||||||
Accumulated other comprehensive income by component (1) | |||||||||||||
Unrealized | Unrecognized | Total | |||||||||||
gains (losses) on | pension and | ||||||||||||
available-for- | postretirement | ||||||||||||
sale securities | benefit obligations | ||||||||||||
Balance at December 31, 2012 | $ | 69,806 | $ | (22,054 | ) | $ | 47,752 | ||||||
Other comprehensive income (loss) before reclassifications | (15,582 | ) | 31,266 | 15,684 | |||||||||
Amounts reclassified from accumulated other comprehensive income | (5,848 | ) | 1,422 | (4,426 | ) | ||||||||
Other comprehensive income (loss) | (21,430 | ) | 32,688 | 11,258 | |||||||||
Balance at December 31, 2013 | 48,376 | 10,634 | 59,010 | ||||||||||
Other comprehensive income (loss) before reclassifications | 34,663 | (5,560 | ) | 29,103 | |||||||||
Amounts reclassified from accumulated other comprehensive income | (4,677 | ) | (1,774 | ) | (6,451 | ) | |||||||
Other comprehensive income (loss) | 29,986 | (7,334 | ) | 22,652 | |||||||||
Balance at December 31, 2014 | $ | 78,362 | $ | 3,300 | $ | 81,662 | |||||||
-1 | All amounts are net of tax. Amounts in parentheses indicate debits. | ||||||||||||
The following tables display amounts reclassified out of accumulated other comprehensive income during the years ended December 31, 2014 and 2013, respectively. | |||||||||||||
Amounts reclassified from accumulated other comprehensive income (1) | |||||||||||||
Accumulated other comprehensive income components | Year ended December 31, 2014 | Affected line item in the consolidated statements of income | |||||||||||
Unrealized gains on investments: | |||||||||||||
Reclassification adjustment for realized investment gains included in net income | $ | 7,195 | Net realized investment gains | ||||||||||
Deferred income tax expense | (2,518 | ) | Income tax expense, current | ||||||||||
Net reclassification adjustment | 4,677 | ||||||||||||
Unrecognized pension and postretirement benefit obligations: | |||||||||||||
Reclassification adjustment for amounts amortized into net periodic pension and postretirement benefit cost (income): | |||||||||||||
Net actuarial loss | (578 | ) | -2 | ||||||||||
Prior service credit | 3,307 | -2 | |||||||||||
Total before tax | 2,729 | ||||||||||||
Deferred income tax expense | (955 | ) | Income tax expense, current | ||||||||||
Net reclassification adjustment | 1,774 | ||||||||||||
Total reclassification adjustment | $ | 6,451 | |||||||||||
-1 | Amounts in parentheses indicate debits to net income | ||||||||||||
-2 | These accumulated other comprehensive income components are included in the computation of net periodic pension and postretirement benefit cost (income) (see Note 12, Employee Retirement Plans, for additional details). | ||||||||||||
Amounts reclassified from accumulated other comprehensive income (1) | |||||||||||||
Accumulated other comprehensive income components | Year ended December 31, 2013 | Affected line item in the consolidated statements of income | |||||||||||
Unrealized gains on investments: | |||||||||||||
Reclassification adjustment for realized investment gains included in net income | $ | 8,997 | Net realized investment gains | ||||||||||
Deferred income tax expense | (3,149 | ) | Income tax expense, current | ||||||||||
Net reclassification adjustment | 5,848 | ||||||||||||
Unrecognized pension and postretirement benefit obligations: | |||||||||||||
Reclassification adjustment for amounts amortized into net periodic pension and postretirement benefit cost (income): | |||||||||||||
Net actuarial loss | (2,895 | ) | -2 | ||||||||||
Prior service credit | 708 | -2 | |||||||||||
Total before tax | (2,187 | ) | |||||||||||
Deferred income tax expense | 765 | Income tax expense, current | |||||||||||
Net reclassification adjustment | (1,422 | ) | |||||||||||
Total reclassification adjustment | $ | 4,426 | |||||||||||
-1 | Amounts in parentheses indicate debits to net income | ||||||||||||
-2 | These accumulated other comprehensive income components are included in the computation of net periodic pension and postretirement benefit cost (income) (see Note 12, Employee Retirement Plans, for additional details). |
STOCK_REPURCHASE_PROGRAMS
STOCK REPURCHASE PROGRAMS | 12 Months Ended |
Dec. 31, 2014 | |
Equity [Abstract] | |
STOCK REPURCHASE PROGRAMS | STOCK REPURCHASE PROGRAMS |
Stock Repurchase Plans | |
On November 3, 2011, the Company’s Board of Directors authorized a $15,000 stock repurchase program. This program became effective immediately and does not have an expiration date. The timing and terms of the purchases are determined by management based on market conditions and are conducted in accordance with the applicable rules of the Securities and Exchange Commission. Common stock repurchased under this program will be retired by the Company. No purchases have been made under this program. | |
Stock Purchase Plan | |
During the second quarter of 2005, Employers Mutual initiated a new $15,000 stock purchase program under which Employers Mutual will purchase shares of the Company’s common stock in the open market. This purchase program does not have an expiration date; however, this program is currently dormant and will remain so while the Company’s repurchase program is in effect. The timing and terms of the purchases are determined by management based on market conditions and are conducted in accordance with the applicable rules of the Securities and Exchange Commission. No purchases were made during 2014, 2013 and 2012. As of December 31, 2014, $4,491 remained available under this plan for additional purchases. |
LEASES_COMMITMENTS_AND_CONTING
LEASES, COMMITMENTS AND CONTINGENT LIABILITIES | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||
LEASES, COMMITMENTS AND CONTINGENT LIABILITIES | LEASES, COMMITMENTS AND CONTINGENT LIABILITIES | ||||||||||||||||||||
One of the Company’s property and casualty insurance subsidiaries leases office facilities in Bismarck, North Dakota with lease terms expiring in 2014 (new lease agreement is in place for 2015 through 2024). Employers Mutual has entered into various leases for branch and service office facilities with lease terms expiring through 2024. All of these lease costs are included as expenses under the pooling agreement. The following table reflects the lease commitments of the Company as of December 31, 2014. | |||||||||||||||||||||
Payments due by period | |||||||||||||||||||||
Total | Less than | 3-Jan | 5-Apr | More than | |||||||||||||||||
1 year | years | years | 5 years | ||||||||||||||||||
Lease commitments | |||||||||||||||||||||
Real estate operating leases | $ | 8,632 | $ | 1,341 | $ | 2,510 | $ | 2,287 | $ | 2,494 | |||||||||||
The participants in the pooling agreement are subject to guaranty fund assessments by states in which they write business. Guaranty fund assessments are used by states to pay policyholder liabilities of insolvent insurers domiciled in those states. Many states allow assessments to be recovered through premium tax offsets. The Company has accrued estimated guaranty fund assessments of $931 and $894 as of December 31, 2014 and 2013, respectively. Premium tax offsets of $969 and $894, which are related to prior guarantee fund payments and current assessments, have been accrued as of December 31, 2014 and 2013, respectively. The guaranty fund assessments are expected to be paid over the next two years and the premium tax offsets are expected to be realized within ten years of the payments. The participants in the pooling agreement are also subject to second-injury fund assessments, which are designed to encourage employers to employ workers with pre-existing disabilities. The Company has accrued estimated second-injury fund assessments of $1,694 and $1,747 as of December 31, 2014 and 2013, respectively. The second-injury fund assessment accruals are based on projected loss payments. The periods over which the assessments will be paid is not known. | |||||||||||||||||||||
The participants in the pooling agreement have purchased annuities from life insurance companies, under which the claimant is payee, to fund future payments that are fixed pursuant to specific claim settlement provisions. The Company’s share of case loss reserves eliminated by the purchase of those annuities was $110 at December 31, 2014. The Company had a contingent liability for the aggregate guaranteed amount of the annuities of $183 at December 31, 2014 should the issuers of those annuities fail to perform. The probability of a material loss due to failure of performance by the issuers of these annuities is considered remote. | |||||||||||||||||||||
The Company and Employers Mutual and its other subsidiaries are parties to numerous lawsuits arising in the normal course of the insurance business. The Company believes that the resolution of these lawsuits will not have a material adverse effect on its financial condition or its results of operations. The companies involved have established reserves which are believed adequate to cover any potential liabilities arising out of all such pending or threatened proceedings. |
UNAUDITED_INTERIM_FINANCIAL_IN
UNAUDITED INTERIM FINANCIAL INFORMATION | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||
UNAUDITED INTERIM FINANCIAL INFORMATION | UNAUDITED INTERIM FINANCIAL INFORMATION | ||||||||||||||||
Three months ended, | |||||||||||||||||
31-Mar | 30-Jun | 30-Sep | 31-Dec | ||||||||||||||
2014 | |||||||||||||||||
Total revenues (1) | $ | 146,231 | $ | 147,733 | $ | 150,659 | $ | 149,844 | |||||||||
Income before income tax expense | $ | 14,889 | $ | 270 | $ | 1,883 | $ | 23,865 | |||||||||
Income tax expense (benefit) | 4,294 | (744 | ) | (346 | ) | 7,711 | |||||||||||
Net income | $ | 10,595 | $ | 1,014 | $ | 2,229 | $ | 16,154 | |||||||||
Net income per common share - basic and diluted (2) | $ | 0.79 | $ | 0.08 | $ | 0.16 | $ | 1.19 | |||||||||
Three months ended, | |||||||||||||||||
31-Mar | 30-Jun | 30-Sep | 31-Dec | ||||||||||||||
2013 | |||||||||||||||||
Total revenues (1) | $ | 134,284 | $ | 138,466 | $ | 143,552 | $ | 151,683 | |||||||||
Income before income tax expense | $ | 20,509 | $ | 7,949 | $ | 9,564 | $ | 22,831 | |||||||||
Income tax expense (benefit) | 6,236 | 1,737 | 2,365 | 6,996 | |||||||||||||
Net income | $ | 14,273 | $ | 6,212 | $ | 7,199 | $ | 15,835 | |||||||||
Net income per common share - basic and diluted (2) | $ | 1.1 | $ | 0.48 | $ | 0.55 | $ | 1.2 | |||||||||
-1 | Amounts include the reclassification of foreign currency exchange rate gains (losses) to other income in the consolidated financial statements. Prior to the fourth quarter of 2014, these amounts were reported as a component of other expenses. | ||||||||||||||||
-2 | Since the weighted-average number of shares outstanding for the quarters are calculated independently of the weighted-average number of shares outstanding for the year, quarterly net income per share may not total to annual net income per share. |
Schedule_I_Summary_of_Investme
Schedule I - Summary of Investments-Other than Investments in Related Parties | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Summary of Investments, Other than Investments in Related Parties [Abstract] | |||||||||||||
Schedule I - Summary of Investments-Other than Investments in Related Parties | EMC INSURANCE GROUP INC. AND SUBSIDIARIES | ||||||||||||
Schedule I – Summary of Investments- | |||||||||||||
Other than Investment in Related Parties | |||||||||||||
December 31, 2014 | |||||||||||||
($ in thousands, except share and per share amounts) | |||||||||||||
Type of investment | Cost | Fair value | Amount at which shown in the balance sheet | ||||||||||
Securities available-for-sale: | |||||||||||||
Fixed maturity securities: | |||||||||||||
U.S. treasury | $ | 9,574 | $ | 9,703 | $ | 9,703 | |||||||
U.S. government-sponsored agencies | 215,425 | 215,616 | 215,616 | ||||||||||
Obligations of states and political subdivisions | 299,258 | 326,058 | 326,058 | ||||||||||
Commercial mortgage-backed | 42,996 | 46,762 | 46,762 | ||||||||||
Residential mortgage-backed | 100,296 | 97,953 | 97,953 | ||||||||||
Other asset-backed | 14,798 | 16,005 | 16,005 | ||||||||||
Corporate | 397,659 | 415,402 | 415,402 | ||||||||||
Total fixed maturity securities | 1,080,006 | 1,127,499 | 1,127,499 | ||||||||||
Equity securities: | |||||||||||||
Common stocks: | |||||||||||||
Financial services | 22,586 | 34,379 | 34,379 | ||||||||||
Information technology | 15,755 | 26,865 | 26,865 | ||||||||||
Healthcare | 14,673 | 26,852 | 26,852 | ||||||||||
Consumer staples | 10,584 | 16,694 | 16,694 | ||||||||||
Consumer discretionary | 11,304 | 22,691 | 22,691 | ||||||||||
Energy | 15,837 | 22,863 | 22,863 | ||||||||||
Industrials | 9,658 | 18,221 | 18,221 | ||||||||||
Other | 11,493 | 16,056 | 16,056 | ||||||||||
Non-redeemable preferred stocks | 12,082 | 12,415 | 12,415 | ||||||||||
Total equity securities | 123,972 | 197,036 | 197,036 | ||||||||||
Other long-term investments | 6,227 | 6,227 | 6,227 | ||||||||||
Short-term investments | 53,262 | 53,262 | 53,262 | ||||||||||
Total investments | $ | 1,263,467 | $ | 1,384,024 | $ | 1,384,024 | |||||||
Schedule_II_Condensed_Financia
Schedule II - Condensed Financial Information of Registrant | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |||||||||||||
Schedule II - Condensed Financial Information of Registrant | EMC INSURANCE GROUP INC. AND SUBSIDIARIES | ||||||||||||
Schedule II – Condensed Financial Information of Registrant | |||||||||||||
Condensed Balance Sheets | |||||||||||||
December 31, | |||||||||||||
($ in thousands, except share and per share amounts) | 2014 | 2013 | |||||||||||
ASSETS | |||||||||||||
Investment in common stock of subsidiaries (equity method) | $ | 495,288 | $ | 441,984 | |||||||||
Short-term investments | 6,731 | 12,687 | |||||||||||
Cash | 274 | 149 | |||||||||||
Prepaid assets | 87 | 67 | |||||||||||
Accounts receivable | 69 | — | |||||||||||
Income taxes recoverable | 559 | 481 | |||||||||||
Total assets | $ | 503,008 | $ | 455,368 | |||||||||
LIABILITIES | |||||||||||||
Accounts payable | $ | 80 | $ | 101 | |||||||||
Amounts due affiliate to settle inter-company transaction balances | 42 | 57 | |||||||||||
Total liabilities | 122 | 158 | |||||||||||
STOCKHOLDERS' EQUITY | |||||||||||||
Common stock, $1 par value, authorized 20,000,000 shares; issued and outstanding, 13,562,980 shares in 2014 and 13,306,027 shares in 2013 | 13,563 | 13,306 | |||||||||||
Additional paid-in capital | 106,672 | 99,309 | |||||||||||
Accumulated other comprehensive income | 81,662 | 59,010 | |||||||||||
Retained earnings | 300,989 | 283,585 | |||||||||||
Total stockholders' equity | 502,886 | 455,210 | |||||||||||
Total liabilities and stockholders' equity | $ | 503,008 | $ | 455,368 | |||||||||
All affiliated balances presented above are the result of related party transactions with Employers Mutual. | |||||||||||||
EMC INSURANCE GROUP INC. AND SUBSIDIARIES | |||||||||||||
Schedule II – Condensed Financial Information of Registrant, Continued | |||||||||||||
Condensed Statements of Income | |||||||||||||
Year ended December 31, | |||||||||||||
($ in thousands, except share and per share amounts) | 2014 | 2013 | 2012 | ||||||||||
REVENUES | |||||||||||||
Dividends received from subsidiaries | $ | 378 | $ | 9,974 | $ | 12,050 | |||||||
Investment loss | (12 | ) | (10 | ) | (10 | ) | |||||||
Total revenues | 366 | 9,964 | 12,040 | ||||||||||
Operating expenses (affiliated $777, $605 and $584) | 1,584 | 1,364 | 1,299 | ||||||||||
Income (loss) before income tax benefit and equity in undistributed net income of subsidiaries | (1,218 | ) | 8,600 | 10,741 | |||||||||
Income tax benefit | (558 | ) | (481 | ) | (462 | ) | |||||||
Income (loss) before equity in undistributed net income of subsidiaries | (660 | ) | 9,081 | 11,203 | |||||||||
Equity in undistributed net income of subsidiaries | 30,652 | 34,438 | 26,763 | ||||||||||
Net income | $ | 29,992 | $ | 43,519 | $ | 37,966 | |||||||
All affiliated balances presented above are the result of related party transactions with Employers Mutual. | |||||||||||||
EMC INSURANCE GROUP INC. AND SUBSIDIARIES | |||||||||||||
Schedule II – Condensed Financial Information of Registrant, Continued | |||||||||||||
Condensed Statements of Comprehensive Income | |||||||||||||
Year ended December 31, | |||||||||||||
($ in thousands, except share and per share amounts) | 2014 | 2013 | 2012 | ||||||||||
Net income | $ | 29,992 | $ | 43,519 | $ | 37,966 | |||||||
OTHER COMPREHENSIVE INCOME (LOSS) | |||||||||||||
Change in unrealized holding gains (losses) on investment securities, net of deferred income taxes | 34,663 | (15,582 | ) | 23,863 | |||||||||
Reclassification adjustment for realized investment gains included in net income, net of income taxes | (4,677 | ) | (5,848 | ) | (5,211 | ) | |||||||
Reclassification adjustment for amounts amortized into net periodic pension and postretirement benefit cost (income), net of deferred income taxes: | |||||||||||||
Net actuarial loss | 375 | 1,882 | 2,108 | ||||||||||
Prior service credit | (2,149 | ) | (460 | ) | (344 | ) | |||||||
Total reclassification adjustment associated with affiliate's pension and postretirement benefit plans | (1,774 | ) | 1,422 | 1,764 | |||||||||
Change in funded status of affiliate's pension and postretirement benefit plans, net of deferred income taxes: | |||||||||||||
Net actuarial gain (loss) | (5,525 | ) | 13,718 | (736 | ) | ||||||||
Prior service (cost) credit | (35 | ) | 17,548 | 732 | |||||||||
Total change in funded status of affiliate's pension and postretirement benefit plans | (5,560 | ) | 31,266 | (4 | ) | ||||||||
Other comprehensive income | 22,652 | 11,258 | 20,412 | ||||||||||
Total comprehensive income | $ | 52,644 | $ | 54,777 | $ | 58,378 | |||||||
All affiliated balances presented above are the result of related party transactions with Employers Mutual. | |||||||||||||
EMC INSURANCE GROUP INC. AND SUBSIDIARIES | |||||||||||||
Schedule II – Condensed Financial Information of Registrant, Continued | |||||||||||||
Condensed Statements of Cash Flows | |||||||||||||
Year ended December 31, | |||||||||||||
($ in thousands, except share and per share amounts) | 2014 | 2013 | 2012 | ||||||||||
Net cash provided by (used in) operating activities | $ | (738 | ) | $ | 9,544 | $ | 11,117 | ||||||
Cash flows from investing activities | |||||||||||||
Net (purchases) sales of short-term investments | 5,956 | (8,715 | ) | (1,198 | ) | ||||||||
Net cash (used in) provided by investing activities | 5,956 | (8,715 | ) | (1,198 | ) | ||||||||
Cash flows from financing activities | |||||||||||||
Issuance of common stock through affiliate’s stock plans | 7,392 | 10,208 | 692 | ||||||||||
Excess tax benefit associated with affiliate’s stock plans | 103 | 96 | (3 | ) | |||||||||
Dividends paid to stockholders (affiliated $(7,377), $(6,749) and $(6,357)) | (12,588 | ) | (11,275 | ) | (10,439 | ) | |||||||
Net cash used in financing activities | (5,093 | ) | (971 | ) | (9,750 | ) | |||||||
Net increase (decrease) in cash | 125 | (142 | ) | 169 | |||||||||
Cash at the beginning of the year | 149 | 291 | 122 | ||||||||||
Cash at the end of the year | $ | 274 | $ | 149 | $ | 291 | |||||||
Income taxes recovered | $ | 481 | $ | — | $ | 471 | |||||||
Interest paid | $ | — | $ | — | $ | — | |||||||
All affiliated balances presented above are the result of related party transactions with Employers Mutual. |
Schedule_III_Supplementary_Ins
Schedule III - Supplementary Insurance Information | 12 Months Ended | |||||||||||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||||||||||
Supplementary Insurance Information [Abstract] | ||||||||||||||||||||||||||||||||||||
Schedule III - Supplementary Insurance Information | EMC INSURANCE GROUP INC. AND SUBSIDIARIES | |||||||||||||||||||||||||||||||||||
Schedule III – Supplementary Insurance Information | ||||||||||||||||||||||||||||||||||||
For Years Ended December 31, 2014, 2013 and 2012 | ||||||||||||||||||||||||||||||||||||
($ in thousands, except share and per share amounts) | ||||||||||||||||||||||||||||||||||||
Segment | Deferred policy acquisition costs | Loss and settlement expense reserves | Unearned premiums | Premium revenue | Net investment income | Losses and settlement expenses incurred | Amortization of deferred policy acquisition costs | Other underwriting expenses | Premiums written | |||||||||||||||||||||||||||
Year ended December 31, 2014 | ||||||||||||||||||||||||||||||||||||
Property and casualty insurance | $ | 33,855 | $ | 463,458 | $ | 204,357 | $ | 422,381 | $ | 33,509 | $ | 298,033 | $ | 72,768 | $ | 54,385 | $ | 433,707 | ||||||||||||||||||
Reinsurance | 5,488 | 197,851 | 27,736 | 118,341 | 12,968 | 87,441 | 26,274 | 2,441 | 118,903 | |||||||||||||||||||||||||||
Parent company | — | — | — | — | (12 | ) | — | — | — | — | ||||||||||||||||||||||||||
Consolidated | $ | 39,343 | $ | 661,309 | $ | 232,093 | $ | 540,722 | $ | 46,465 | $ | 385,474 | $ | 99,042 | $ | 56,826 | $ | 552,610 | ||||||||||||||||||
Year ended December 31, 2013 | ||||||||||||||||||||||||||||||||||||
Property and casualty insurance | $ | 32,740 | $ | 425,758 | $ | 191,714 | $ | 392,719 | $ | 31,397 | $ | 260,917 | $ | 68,851 | $ | 62,522 | $ | 405,049 | ||||||||||||||||||
Reinsurance | 5,052 | 184,423 | 28,913 | 122,787 | 11,635 | 72,370 | 25,877 | 3,232 | 129,028 | |||||||||||||||||||||||||||
Parent company | — | — | — | — | (10 | ) | — | — | — | — | ||||||||||||||||||||||||||
Consolidated | $ | 37,792 | $ | 610,181 | $ | 220,627 | $ | 515,506 | $ | 43,022 | $ | 333,287 | $ | 94,728 | $ | 65,754 | $ | 534,077 | ||||||||||||||||||
Year ended December 31, 2012 | ||||||||||||||||||||||||||||||||||||
Property and casualty insurance | $ | 30,872 | $ | 412,317 | $ | 177,618 | $ | 357,139 | $ | 32,214 | $ | 233,892 | $ | 63,641 | $ | 59,183 | $ | 371,235 | ||||||||||||||||||
Reinsurance | 3,554 | 170,780 | 18,597 | 101,707 | 11,941 | 69,496 | 20,634 | 1,736 | 107,246 | |||||||||||||||||||||||||||
Parent company | — | — | — | — | (10 | ) | — | — | — | — | ||||||||||||||||||||||||||
Consolidated | $ | 34,426 | $ | 583,097 | $ | 196,215 | $ | 458,846 | $ | 44,145 | $ | 303,388 | $ | 84,275 | $ | 60,919 | $ | 478,481 | ||||||||||||||||||
Schedule_IV_Reinsurance
Schedule IV - Reinsurance | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||
Supplemental Schedule of Reinsurance Premiums for Insurance Companies [Abstract] | |||||||||||||||||||
Schedule IV - Reinsurance | EMC INSURANCE GROUP INC. AND SUBSIDIARIES | ||||||||||||||||||
Schedule IV – Reinsurance | |||||||||||||||||||
For Years Ended December 31, 2014, 2013 and 2012 | |||||||||||||||||||
Gross amount | Ceded to other companies | Assumed from other companies | Net amount | Percentage of amount assumed to net | |||||||||||||||
Year ended December 31, 2014 | |||||||||||||||||||
Consolidated earned premiums | $ | 372,658 | $ | 423,602 | $ | 591,666 | $ | 540,722 | 109.4 | % | |||||||||
Year ended December 31, 2013 | |||||||||||||||||||
Consolidated earned premiums | $ | 361,010 | $ | 413,422 | $ | 567,918 | $ | 515,506 | 110.2 | % | |||||||||
Year ended December 31, 2012 | |||||||||||||||||||
Consolidated earned premiums | $ | 328,227 | $ | 368,870 | $ | 499,489 | $ | 458,846 | 108.9 | % | |||||||||
Schedule_VI_Supplemental_Infor
Schedule VI - Supplemental Information Concerning Property-Casualty Insurance Operations | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Supplemental Information for Property, Casualty Insurance Underwriters [Abstract] | |||||||||||||||||||||||||
Schedule VI - Supplemental Information Concerning Property-Casualty Insurance Operations | EMC INSURANCE GROUP INC. AND SUBSIDIARIES | ||||||||||||||||||||||||
Schedule VI – Supplemental Information Concerning | |||||||||||||||||||||||||
Property-Casualty Insurance Operations | |||||||||||||||||||||||||
For Years Ended December 31, 2014, 2013 and 2012 | |||||||||||||||||||||||||
Deferred | Reserves for | Discount, if | Unearned | Earned | Net | ||||||||||||||||||||
policy | losses and | any, deducted | premiums | premiums | investment | ||||||||||||||||||||
acquisition | settlement | from | income | ||||||||||||||||||||||
costs | expenses | reserves | |||||||||||||||||||||||
Year ended December 31, 2014 | $ | 39,343 | $ | 661,309 | $ | — | $ | 232,093 | $ | 540,722 | $ | 46,477 | |||||||||||||
Year ended December 31, 2013 | $ | 37,792 | $ | 610,181 | $ | — | $ | 220,627 | $ | 515,506 | $ | 43,032 | |||||||||||||
Year ended December 31, 2012 | $ | 34,426 | $ | 583,097 | $ | — | $ | 196,215 | $ | 458,846 | $ | 44,155 | |||||||||||||
Losses and settlement | Amortization of | Paid losses and settlement expenses | Premiums | ||||||||||||||||||||||
expenses incurred related to | deferred policy acquisition costs | written | |||||||||||||||||||||||
Current year | Prior years | ||||||||||||||||||||||||
Year ended December 31, 2014 | $ | 406,266 | $ | (20,792 | ) | $ | 99,042 | $ | 330,087 | $ | 552,610 | ||||||||||||||
Year ended December 31, 2013 | $ | 346,072 | $ | (12,785 | ) | $ | 94,728 | $ | 305,266 | $ | 534,077 | ||||||||||||||
Year ended December 31, 2012 | $ | 329,121 | $ | (25,733 | ) | $ | 84,275 | $ | 308,137 | $ | 478,481 | ||||||||||||||
SUMMARY_OF_SIGNIFICANT_ACCOUNT1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2014 | |
Accounting Policies [Abstract] | |
Nature of operations | Description of Business |
EMC Insurance Group Inc., a majority owned subsidiary of Employers Mutual Casualty Company (Employers Mutual), is an insurance holding company with operations in property and casualty insurance and reinsurance. The Company conducts its property and casualty insurance operations through the following subsidiaries: EMCASCO Insurance Company, Illinois EMCASCO Insurance Company and Dakota Fire Insurance Company, and its reinsurance operations through its subsidiary, EMC Reinsurance Company. The Company also has an excess and surplus lines insurance agency subsidiary, EMC Underwriters, LLC. The term “Company” is used interchangeably to describe EMC Insurance Group Inc. (Parent Company only) and EMC Insurance Group Inc. and its subsidiaries. | |
The Company writes property and casualty insurance in both commercial and personal lines of insurance, with a focus on medium-sized commercial accounts. Approximately 37 percent of the premiums written are in Iowa and contiguous states. The Company’s reinsurance business is primarily written through a quota share reinsurance agreement with Employers Mutual. A small portion of the assumed reinsurance business is written on a direct basis, outside the quota share reinsurance agreement. | |
Principles of Consolidation and Basis of Presentation | Principles of Consolidation and Basis of Presentation |
The consolidated financial statements have been prepared on the basis of U.S. generally accepted accounting principles (GAAP), which differ in some respects from those followed in reports to insurance regulatory authorities. All significant inter-company balances and transactions have been eliminated. | |
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements, as well as the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. The Company has evaluated all subsequent events through the date the financial statements were issued. | |
Property and Casualty Insurance and Reinsurance Operations | Property and Casualty Insurance and Reinsurance Operations |
Property and casualty insurance premiums are recognized as revenue ratably over the terms of the respective policies. Unearned premiums are calculated on the daily pro rata method. Both domestic and foreign assumed reinsurance premiums are recognized as revenues ratably over the terms of the related contracts and underlying policies. Amounts paid as ceded reinsurance premiums are reported as prepaid reinsurance premiums and are amortized over the remaining contract period in proportion to the amount of reinsurance protection provided. Reinsurance reinstatement premiums are recognized in the same period as the loss event that gave rise to the reinstatement premiums. | |
Costs related to the acquisition of insurance contracts are deferred and amortized to expense as the associated premium revenue is recognized. Only incremental costs or costs directly related to the successful acquisition of new or renewal insurance contracts are to be capitalized. Accordingly, acquisition costs consist of commissions, premium taxes, and salary and benefit expenses of employees directly involved in the underwriting of insurance policies that are successfully issued. | |
The method followed in computing deferred policy acquisition costs limits the amount of such deferred costs to the estimated realizable value. In determining estimated realizable value, the computation gives effect to the premium to be earned, related investment income, anticipated losses and settlement expenses, anticipated policyholder dividends, and certain other costs expected to be incurred to administer the insurance policies as the premium is earned. The anticipated losses and settlement expenses are not discounted and are based on the Company’s projected loss and settlement expense ratios for the next twelve months, which include catastrophe loads based on historical results adjusted for recent trends. The occurrence of a significant catastrophe, and/or accumulation of catastrophes would not have a direct impact on the determination of premium deficiencies; however, such occurrences would be included in the historical results that are used to establish the catastrophe loads. A premium deficiency is first recognized by expensing the amount of unamortized deferred policy acquisition costs necessary to eliminate the deficiency. If the premium deficiency is greater than the unamortized deferred policy acquisition costs, a liability is accrued for the excess deficiency. The Company did not record a premium deficiency for the years ended December 31, 2014, 2013 and 2012. | |
Certain commercial lines of business written by the property and casualty insurance subsidiaries, including workers’ compensation, are eligible for policyholder dividends in accordance with provisions of the underlying insurance policies. Net premiums written subject to policyholder dividends represented approximately 26 percent of the property and casualty insurance subsidiaries’ total net commercial premiums written in 2014. Policyholder dividends are accrued over the terms of the underlying policy periods. | |
Liabilities for losses reflect losses incurred through the balance sheet date and are based upon case-basis estimates of reported losses supplemented with bulk case loss reserves, estimates of unreported losses based upon prior experience adjusted for current trends, and estimates of losses expected to be paid under assumed reinsurance contracts. Liabilities for settlement expenses are provided by estimating expenses expected to be incurred in settling the claims provided for in the loss reserves. Changes in estimates are reflected in current operating results (see note 4). | |
Ceded reinsurance amounts with nonaffiliated reinsurers relating to reinsurance receivables for unpaid losses and settlement expenses and prepaid reinsurance premiums are reported on the balance sheet on a gross basis. Amounts ceded to Employers Mutual relating to the affiliated reinsurance pooling and excess of loss agreements (see note 2) have not been grossed up because the contracts provide that receivables and payables may be offset upon settlement. | |
Based on current information, the liabilities for losses and settlement expenses are considered to be adequate. Since the provisions are necessarily based on estimates, the ultimate liability may be more or less than such provisions. | |
Investments | Investments |
Currently, all securities are classified as available-for-sale and are carried at fair value, with unrealized holding gains and losses reported as a component of accumulated other comprehensive income (loss) in stockholders’ equity, net of deferred income taxes. Other long-term investments consist of holdings in limited partnerships that are carried under the equity method of accounting, and holdings in limited partnerships and limited liability companies designed for the distribution of tax credits that are carried at amortized cost. The Company has an investment in a limited partnership that is designed to help protect the Company from a sudden and significant decline in the value of its equity portfolio. This limited partnership is carried under the equity method of accounting. Because of the nature of this investment, which was made solely to implement the equity tail-risk hedging strategy, changes in the carrying value of the limited partnership are recorded as realized investment gains (losses), rather than as a component of investment income. Short-term investments generally include money market funds, U.S. Treasury bills and commercial paper that are carried at fair value, which approximates cost. | |
The Company uses independent pricing sources to obtain the estimated fair value of securities. The fair value is based on quoted market prices, where available. In cases where quoted market prices are not available, the fair value is based on a variety of valuation techniques depending on the type of investment. The fair values obtained from independent pricing sources are reviewed for reasonableness and any discrepancies are investigated for final valuation (see note 8). | |
Premiums and discounts on fixed maturity securities are amortized over the life of the security as an adjustment to yield using the effective interest method. Amortization of premiums and discounts on mortgage-backed securities incorporates prepayment assumptions to estimate expected lives. Gains and losses realized on the disposition of investments are included in net income. The cost of investments sold is determined on the specific identification method using the highest cost basis first. Included in investments at December 31, 2014 and 2013 are securities on deposit with various regulatory authorities as required by law amounting to $11,685 and $11,533, respectively. | |
The Company regularly monitors its investments that have a fair value that is less than the carrying value for indications of “other-than-temporary” impairment. Several factors are used to determine whether the carrying value of an individual security has been “other-than-temporarily” impaired. Such factors include, but are not limited to (1) the security’s value and performance in the context of the overall markets, (2) length of time and extent the security’s fair value has been below carrying value, (3) key corporate events, and (4) for equity securities, the ability and intent to hold the security until recovery to its cost basis. When an equity security is deemed to be “other-than-temporarily” impaired, the carrying value is reduced to fair value and a realized loss is recognized and charged to income. For fixed maturity securities, if the present value of cash flows expected to be collected is less than the amortized cost of the security, a credit loss is deemed to exist and the security is considered “other-than-temporarily” impaired. The portion of the impairment related to a credit loss is recognized through earnings and the portion of the impairment related to other factors, if any, is recognized through “other comprehensive income”. Alternatively, if the Company has the intent to sell a fixed maturity security that is in an unrealized loss position, or determines that it will "more likely than not" be required to sell a fixed maturity security that is in an unrealized loss position before recovery of its amortized cost basis, then the carrying value is reduced to fair value and the entire amount of the impairment is recognized through earnings. | |
Income Taxes | Income Taxes |
The Company files a consolidated Federal income tax return with its subsidiaries. Consolidated income taxes/benefits are allocated among the entities based upon separate tax liabilities. | |
Deferred income taxes are provided for temporary differences between the tax basis of assets and liabilities and the reported amounts of those assets and liabilities for financial reporting purposes. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Income tax expense provisions increase or decrease in the same period in which a change in tax rates is enacted. A valuation allowance is established to reduce deferred tax assets to their net realizable value if it is “more likely than not” that a tax benefit will not be realized. | |
An assessment of the Company’s current tax positions indicated no uncertainties that would warrant different recognition and valuation from that applied in the Company’s tax returns. | |
Stock-Based Compensation | Stock-Based Compensation |
The Company has no stock-based compensation plans of its own; however, Employers Mutual has several stock plans that utilize the common stock of the Company. The Company receives the current fair value for all shares issued under these plans. Employers Mutual also has a stock appreciation rights (SAR) agreement in effect with a former executive officer of the Company. The SAR agreement is based upon the market price of the Company’s common stock and is considered to be a liability-classified award because it will be settled in cash. A portion of the compensation expense recognized by Employers Mutual (as the requisite service period for granted options and restricted stock awards is rendered, or the fair value of the SAR agreement changes) is allocated to the Company’s property and casualty insurance subsidiaries though their participation in the pooling agreement (see note 2). Because a portion of Employers Mutual’s stock compensation expense is reflected in the Company’s financial statements and issuances of the Company’s stock under Employers Mutual’s stock plans have an impact on the Company’s capital accounts, the disclosures required by the Compensation – Stock Compensation Topic 718 of the Financial Accounting Standards Board (FASB) Accounting Standards Codification™ (Codification or ASC) are included in the Company’s consolidated financial statements. | |
Employee Retirement Plans | Employee Retirement Plans |
Employers Mutual has various employee benefit plans, including two defined benefit pension plans, and two postretirement benefit plans that provide retiree healthcare and life insurance benefits. Although the Company has no employees of its own, it is responsible for its share of the expenses and related prepaid assets and liabilities of these plans as determined under the terms of the pooling agreement, and the costs allocated by Employers Mutual to subsidiaries that do not participate in the pooling agreement (see note 2). Accordingly, the Company recognizes its share of the funded status of Employers Mutual’s pension and postretirement benefit plans on its balance sheet, with changes in the funded status of the plans recognized through “other comprehensive income.” | |
Accounts Receivable | Accounts Receivable |
The accounts receivable balance consists of assumed reinsurance premiums receivable (net of any commissions) on business written directly by the reinsurance subsidiary, and commission income receivable on excess and surplus lines business marketed by EMC Underwriters, LLC. These receivables are carried at their initial recognition amounts. It is the Company’s policy to reflect the impairment of receivables through a valuation allowance until ultimately collected or charged-off. No valuation allowance is currently carried, as no amounts are deemed impaired. No interest income, other fees, or deferred costs related to these receivables are assessed or recognized. | |
Off-Balance-Sheet Credit Exposure | Off-Balance-Sheet Credit Exposure |
Employers Mutual collects from agents, policyholders and ceding companies all written premiums associated with the insurance business produced by the pool participants and the assumed reinsurance business ceded to the reinsurance subsidiary. Employers Mutual also collects from its reinsurers all losses and settlement expenses recoverable under the reinsurance contracts covering the pool participants and the fronting business ceded to the reinsurance subsidiary. Employers Mutual settles with the pool participants (monthly) and the reinsurance subsidiary (quarterly) the premiums written from these insurance and reinsurance policies and the paid losses and settlement expenses recoverable under the reinsurance contracts, providing full credit for the premiums written and the paid losses and settlement expenses recoverable under the reinsurance contracts generated during the period (not just the collected portion). Due to this arrangement, and since a significant portion of the premium balances are collected over the course of the coverage period, Employers Mutual carries a substantial receivable balance for insurance and reinsurance premiums in process of collection, and to a lesser extent, paid losses and settlement expenses recoverable from the reinsurance companies. Any of these receivable amounts that are ultimately deemed to be uncollectible are charged-off by Employers Mutual and the expense is charged to the reinsurance subsidiary or allocated to the pool members on the basis of pool participation. As a result, the Company has off-balance sheet arrangements with an unconsolidated entity that results in credit-risk exposures (Employers Mutual’s insurance and reinsurance premium receivable balances, and paid loss and settlement expense recoverable amounts) that are not reflected in the Company’s financial statements. The average annual expense for such charge-offs allocated to the Company over the past ten years is $354. Based on this historical data, this credit-risk exposure is not considered to be material to the Company’s results of operations or financial position, and accordingly, no loss contingency liability has been recorded. | |
Foreign Currency Transactions | Foreign Currency Transactions |
Included in the underlying reinsurance business assumed by the reinsurance subsidiary are reinsurance transactions conducted with foreign cedants denominated in their local functional currencies. In accordance with the terms of the quota share agreement (see note 2), the reinsurance subsidiary assumes all foreign currency exchange gains/losses associated with contracts incepting on January 1, 2006 and thereafter that are subject to the quota share agreement. The reinsurance subsidiary also has foreign currency exchange gains/losses associated with the business assumed outside the quota share agreement. The assets and liabilities resulting from these foreign reinsurance transactions are reported in U.S. dollars based on the foreign currency exchange rates that existed at the balance sheet dates. The foreign currency exchange rate gains/losses reported in the consolidated statements of income that resulted from these foreign reinsurance transactions are reported in U.S. dollars re-measured from the foreign currency exchange rates that existed at the inception of each reinsurance contract. The foreign currency exchange rate gains/losses resulting from these re-measurements to U.S. dollars are reported as a component of other income in the consolidated statements of income. | |
Net Income (Loss) Per Share - Basic and Diluted | Net Income Per Share - Basic and Diluted |
The Company’s basic and diluted net income per share is computed by dividing net income by the weighted average number of common shares outstanding during each period. As previously noted, the Company receives the current fair value for all shares issued under Employers Mutual’s stock plans. As a result, the Company had no potential common shares outstanding during 2014, 2013 and 2012 that would have been dilutive to the calculation of net income per share. | |
Goodwill | Goodwill |
Goodwill represents the excess of cost over the fair value of net assets of acquired subsidiaries. Goodwill is not amortized, but is subject to impairment if the carrying value of the goodwill exceeds the estimated fair value of net assets. If the carrying amount of the subsidiary (including goodwill) exceeds the computed fair value, an impairment loss is recognized through the income statement equal to the excess amount, but not greater than the balance of the goodwill. Goodwill was not deemed to be impaired in 2014, 2013 or 2012. | |
New Accounting Pronouncements | New Accounting Pronouncements |
In January 2014, the FASB updated its guidance related to the Investments-Equity Method and Joint Ventures Topic 323 of the ASC. The objective of this update is to improve the reporting of investments in flow-through limited liability entities that manage or invest in affordable housing projects that qualify for low-income housing tax credits. This updated guidance allows an entity to elect to account for its investments in qualified affordable housing projects using the proportional amortization method if certain conditions are met. Current accounting guidance contains similar, but more restrictive, conditions to elect to use the effective yield method to account for these investments. This guidance is to be applied retrospectively to annual and interim reporting periods beginning after December 15, 2014. Early adoption is permitted. The Company will adopt this guidance during the first quarter of 2015. Adoption of this guidance is not expected to have an impact on the consolidated financial condition or operating results of the Company. | |
In May 2014, the FASB updated its guidance related to the Revenue from Contracts with Customers Topic 606 of the ASC. The objective of this update is to improve the reporting of revenue by providing a more robust framework for addressing revenue issues, and improved disclosure requirements. Current revenue recognition guidance in U.S. GAAP is comprised of broad revenue recognition concepts together with numerous revenue requirements for particular industries or transactions, which sometimes result in different accounting for economically similar transactions. This guidance is to be applied retrospectively to annual and interim reporting periods beginning after December 15, 2016. Early adoption is not permitted. The Company will adopt this guidance during the first quarter of 2017. Since premium revenue from insurance contracts is excluded from the scope of this updated guidance, adoption is expected to have little or no impact on the consolidated financial condition or operating results of the Company (the Company's largest non-premium revenue item is service charges related to the billing of the pool participants' direct written premiums to policyholders, which is included in "Other income" in the consolidated statements of income). |
REINSURANCE_Tables
REINSURANCE (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Reinsurance Disclosures [Abstract] | |||||||||||||
Schedule of reinsurance transactions for insurance companies | The effect of reinsurance on premiums written and earned, and losses and settlement expenses incurred, for the three years ended December 31, 2014 is presented below. The classification of the assumed and ceded reinsurance amounts between affiliates and nonaffiliates is based on the participants in the underlying reinsurance agreements, and is intended to provide an understanding of the actual source of the reinsurance activities. This presentation differs from the classifications used in the consolidated financial statements, where all amounts flowing through the pooling, quota share and excess of loss agreements with Employers Mutual are reported as “affiliated” balances. | ||||||||||||
Year ended December 31, 2014 | |||||||||||||
Property and | Reinsurance | Total | |||||||||||
casualty | |||||||||||||
insurance | |||||||||||||
Premiums written | |||||||||||||
Direct | $ | 367,732 | $ | — | $ | 367,732 | |||||||
Assumed from nonaffiliates | 3,955 | 143,564 | 147,519 | ||||||||||
Assumed from affiliates | 455,183 | — | 455,183 | ||||||||||
Ceded to nonaffiliates | (25,431 | ) | (14,322 | ) | (39,753 | ) | |||||||
Ceded to affiliates | (367,732 | ) | (10,339 | ) | (378,071 | ) | |||||||
Net premiums written | $ | 433,707 | $ | 118,903 | $ | 552,610 | |||||||
Premiums earned | |||||||||||||
Direct | $ | 372,658 | $ | — | $ | 372,658 | |||||||
Assumed from nonaffiliates | 3,787 | 144,439 | 148,226 | ||||||||||
Assumed from affiliates | 443,440 | — | 443,440 | ||||||||||
Ceded to nonaffiliates | (24,846 | ) | (15,759 | ) | (40,605 | ) | |||||||
Ceded to affiliates | (372,658 | ) | (10,339 | ) | (382,997 | ) | |||||||
Net premiums earned | $ | 422,381 | $ | 118,341 | $ | 540,722 | |||||||
Losses and settlement expenses incurred | |||||||||||||
Direct | $ | 227,382 | $ | — | $ | 227,382 | |||||||
Assumed from nonaffiliates | 2,201 | 96,281 | 98,482 | ||||||||||
Assumed from affiliates | 304,579 | 1,278 | 305,857 | ||||||||||
Ceded to nonaffiliates | (8,747 | ) | (10,838 | ) | (19,585 | ) | |||||||
Ceded to affiliates | (227,382 | ) | 720 | (226,662 | ) | ||||||||
Net losses and settlement expenses incurred | $ | 298,033 | $ | 87,441 | $ | 385,474 | |||||||
Year ended December 31, 2013 | |||||||||||||
Property and | Reinsurance | Total | |||||||||||
casualty | |||||||||||||
insurance | |||||||||||||
Premiums written | |||||||||||||
Direct | $ | 368,532 | $ | — | $ | 368,532 | |||||||
Assumed from nonaffiliates | 3,501 | 162,291 | 165,792 | ||||||||||
Assumed from affiliates | 425,218 | — | 425,218 | ||||||||||
Ceded to nonaffiliates | (23,670 | ) | (20,502 | ) | (44,172 | ) | |||||||
Ceded to affiliates | (368,532 | ) | (12,761 | ) | (381,293 | ) | |||||||
Net premiums written | $ | 405,049 | $ | 129,028 | $ | 534,077 | |||||||
Premiums earned | |||||||||||||
Direct | $ | 361,010 | $ | — | $ | 361,010 | |||||||
Assumed from nonaffiliates | 3,275 | 151,978 | 155,253 | ||||||||||
Assumed from affiliates | 412,665 | — | 412,665 | ||||||||||
Ceded to nonaffiliates | (23,221 | ) | (16,430 | ) | (39,651 | ) | |||||||
Ceded to affiliates | (361,010 | ) | (12,761 | ) | (373,771 | ) | |||||||
Net premiums earned | $ | 392,719 | $ | 122,787 | $ | 515,506 | |||||||
Losses and settlement expenses incurred | |||||||||||||
Direct | $ | 237,109 | $ | — | $ | 237,109 | |||||||
Assumed from nonaffiliates | 2,281 | 80,854 | 83,135 | ||||||||||
Assumed from affiliates | 267,292 | 1,199 | 268,491 | ||||||||||
Ceded to nonaffiliates | (8,656 | ) | (8,860 | ) | (17,516 | ) | |||||||
Ceded to affiliates | (237,109 | ) | (823 | ) | (237,932 | ) | |||||||
Net losses and settlement expenses incurred | $ | 260,917 | $ | 72,370 | $ | 333,287 | |||||||
Year ended December 31, 2012 | |||||||||||||
Property and | Reinsurance | Total | |||||||||||
casualty | |||||||||||||
insurance | |||||||||||||
Premiums written | |||||||||||||
Direct | $ | 341,306 | $ | — | $ | 341,306 | |||||||
Assumed from nonaffiliates | 2,459 | 121,500 | 123,959 | ||||||||||
Assumed from affiliates | 390,982 | — | 390,982 | ||||||||||
Ceded to nonaffiliates | (22,206 | ) | (2,338 | ) | (24,544 | ) | |||||||
Ceded to affiliates | (341,306 | ) | (11,916 | ) | (353,222 | ) | |||||||
Net premiums written | $ | 371,235 | $ | 107,246 | $ | 478,481 | |||||||
Premiums earned | |||||||||||||
Direct | $ | 328,227 | $ | — | $ | 328,227 | |||||||
Assumed from nonaffiliates | 2,297 | 119,502 | 121,799 | ||||||||||
Assumed from affiliates | 377,690 | — | 377,690 | ||||||||||
Ceded to nonaffiliates | (22,848 | ) | (5,879 | ) | (28,727 | ) | |||||||
Ceded to affiliates | (328,227 | ) | (11,916 | ) | (340,143 | ) | |||||||
Net premiums earned | $ | 357,139 | $ | 101,707 | $ | 458,846 | |||||||
Losses and settlement expenses incurred | |||||||||||||
Direct | $ | 191,282 | $ | — | $ | 191,282 | |||||||
Assumed from nonaffiliates | 1,718 | 83,988 | 85,706 | ||||||||||
Assumed from affiliates | 237,723 | 962 | 238,685 | ||||||||||
Ceded to nonaffiliates | (5,549 | ) | (5,528 | ) | (11,077 | ) | |||||||
Ceded to affiliates | (191,282 | ) | (9,926 | ) | (201,208 | ) | |||||||
Net losses and settlement expenses incurred | $ | 233,892 | $ | 69,496 | $ | 303,388 | |||||||
LIABILITY_FOR_LOSSES_AND_SETTL1
LIABILITY FOR LOSSES AND SETTLEMENT EXPENSES (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Liability for Future Policy Benefits and Unpaid Claims and Claims Adjustment Expense [Abstract] | |||||||||||||
Schedule of reconciliation of beginning and ending reserves for losses and settlement expenses | The following table sets forth a reconciliation of beginning and ending reserves for losses and settlement expenses of the Company. Amounts presented are on a net basis, with a reconciliation of beginning and ending reserves to the gross amounts presented in the consolidated financial statements. | ||||||||||||
Year ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Gross reserves at beginning of year | $ | 610,181 | $ | 583,097 | $ | 593,300 | |||||||
Less re-valuation due to foreign currency exchange rates | 333 | (2 | ) | — | |||||||||
Less ceded reserves at beginning of year | 30,118 | 31,390 | 36,842 | ||||||||||
Net reserves at beginning of year | 579,730 | 551,709 | 556,458 | ||||||||||
Incurred losses and settlement expenses related to: | |||||||||||||
Current year | 406,266 | 346,072 | 329,121 | ||||||||||
Prior years | (20,792 | ) | (12,785 | ) | (25,733 | ) | |||||||
Total incurred losses and settlement expenses | 385,474 | 333,287 | 303,388 | ||||||||||
Paid losses and settlement expenses related to: | |||||||||||||
Current year | 162,905 | 137,998 | 145,103 | ||||||||||
Prior years | 167,182 | 167,268 | 163,034 | ||||||||||
Total paid losses and settlement expenses | 330,087 | 305,266 | 308,137 | ||||||||||
Net reserves at end of year | 635,117 | 579,730 | 551,709 | ||||||||||
Plus ceded reserves at end of year | 28,253 | 30,118 | 31,390 | ||||||||||
Plus re-valuation due to foreign currency exchange rates | (2,061 | ) | 333 | (2 | ) | ||||||||
Gross reserves at end of year | $ | 661,309 | $ | 610,181 | $ | 583,097 | |||||||
Summary of the approximation of the implied favorable development that had an impact on earnings | The following table presents the reported amounts of favorable development experienced on prior years’ reserves and the portion of the reported development amounts that resulted solely from changes in the allocation of bulk reserves between the current and prior accident years in the property and casualty insurance segment (no impact on earnings). The result is an approximation of the implied amounts of favorable development that had an impact on earnings. | ||||||||||||
Year ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Reported amount of favorable development experienced on prior years' reserves | $ | (20,792 | ) | $ | (12,785 | ) | $ | (25,733 | ) | ||||
Adjustment for (adverse) favorable development included in the reported development amount that had no impact on earnings | 2,151 | 6,526 | (4,551 | ) | |||||||||
Approximation of the implied amount of favorable development that had an impact on earnings | $ | (18,641 | ) | $ | (6,259 | ) | $ | (30,284 | ) |
SEGMENT_INFORMATION_Tables
SEGMENT INFORMATION (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||
Summarized financial information for segments | Summarized financial information for the Company’s segments is as follows: | ||||||||||||||||
Year ended December 31, 2014 | Property and | Reinsurance | Parent | Consolidated | |||||||||||||
casualty | company | ||||||||||||||||
insurance | |||||||||||||||||
Premiums earned | $ | 422,381 | $ | 118,341 | $ | — | $ | 540,722 | |||||||||
Underwriting profit (loss) | (12,309 | ) | 2,185 | — | (10,124 | ) | |||||||||||
Net investment income (loss) | 33,509 | 12,968 | (12 | ) | 46,465 | ||||||||||||
Realized investment gains | 2,938 | 1,411 | — | 4,349 | |||||||||||||
Other income (loss) | 695 | 2,236 | — | 2,931 | |||||||||||||
Interest expense | 337 | — | — | 337 | |||||||||||||
Other expenses | 793 | — | 1,584 | 2,377 | |||||||||||||
Income (loss) before income tax expense (benefit) | $ | 23,703 | $ | 18,800 | $ | (1,596 | ) | $ | 40,907 | ||||||||
Assets | $ | 1,057,429 | $ | 434,139 | $ | 503,008 | $ | 1,994,576 | |||||||||
Eliminations | — | — | (495,288 | ) | (495,288 | ) | |||||||||||
Reclassifications | (909 | ) | — | (559 | ) | (1,468 | ) | ||||||||||
Total assets | $ | 1,056,520 | $ | 434,139 | $ | 7,161 | $ | 1,497,820 | |||||||||
Year ended December 31, 2013 | Property and | Reinsurance | Parent | Consolidated | |||||||||||||
casualty | company | ||||||||||||||||
insurance | |||||||||||||||||
Premiums earned | $ | 392,719 | $ | 122,787 | $ | — | $ | 515,506 | |||||||||
Underwriting profit (loss) | (10,435 | ) | 21,308 | — | 10,873 | ||||||||||||
Net investment income (loss) | 31,397 | 11,635 | (10 | ) | 43,022 | ||||||||||||
Realized investment gains | 7,525 | 1,472 | — | 8,997 | |||||||||||||
Other income (loss) | 765 | (305 | ) | — | 460 | ||||||||||||
Interest expense | 384 | — | — | 384 | |||||||||||||
Other expenses | 751 | — | 1,364 | 2,115 | |||||||||||||
Income (loss) before income tax expense (benefit) | $ | 28,117 | $ | 34,110 | $ | (1,374 | ) | $ | 60,853 | ||||||||
Assets | $ | 974,743 | $ | 386,855 | $ | 455,368 | $ | 1,816,966 | |||||||||
Eliminations | — | — | (441,984 | ) | (441,984 | ) | |||||||||||
Reclassifications | — | — | (481 | ) | (481 | ) | |||||||||||
Total assets | $ | 974,743 | $ | 386,855 | $ | 12,903 | $ | 1,374,501 | |||||||||
Year ended December 31, 2012 | Property and | Reinsurance | Parent | Consolidated | |||||||||||||
casualty | company | ||||||||||||||||
insurance | |||||||||||||||||
Premiums earned | $ | 357,139 | $ | 101,707 | $ | — | $ | 458,846 | |||||||||
Underwriting profit (loss) | (8,207 | ) | 9,841 | — | 1,634 | ||||||||||||
Net investment income (loss) | 32,214 | 11,941 | (10 | ) | 44,145 | ||||||||||||
Realized investment gains | 7,348 | 669 | — | 8,017 | |||||||||||||
Other income (loss) | 774 | 60 | — | 834 | |||||||||||||
Interest expense | 900 | — | — | 900 | |||||||||||||
Other expenses | 798 | — | 1,299 | 2,097 | |||||||||||||
Income (loss) before income tax expense (benefit) | $ | 30,431 | $ | 22,511 | $ | (1,309 | ) | $ | 51,633 | ||||||||
Summary of net premiums earned by line of insurance | The following table displays the net premiums earned of the property and casualty insurance segment and the reinsurance segment for the three years ended December 31, 2014, by line of insurance. | ||||||||||||||||
Year ended December 31, | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Property and casualty insurance segment | |||||||||||||||||
Commercial lines: | |||||||||||||||||
Automobile | $ | 96,908 | $ | 86,230 | $ | 76,362 | |||||||||||
Property | 97,155 | 87,446 | 77,726 | ||||||||||||||
Workers' compensation | 88,356 | 83,172 | 75,697 | ||||||||||||||
Liability | 86,108 | 77,983 | 68,661 | ||||||||||||||
Other | 7,416 | 7,487 | 7,614 | ||||||||||||||
Total commercial lines | 375,943 | 342,318 | 306,060 | ||||||||||||||
Personal lines: | |||||||||||||||||
Automobile | 25,094 | 27,408 | 28,437 | ||||||||||||||
Property | 20,562 | 22,285 | 22,020 | ||||||||||||||
Liability | 782 | 708 | 622 | ||||||||||||||
Total personal lines | 46,438 | 50,401 | 51,079 | ||||||||||||||
Total property and casualty insurance | $ | 422,381 | $ | 392,719 | $ | 357,139 | |||||||||||
Reinsurance segment | |||||||||||||||||
Pro rata reinsurance: | |||||||||||||||||
Property and liability | $ | 8,552 | $ | 7,489 | $ | 6,232 | |||||||||||
Property | 4,793 | 15,775 | 13,509 | ||||||||||||||
Crop | 3,636 | 4,455 | 3,841 | ||||||||||||||
Liability | 9,919 | 5,172 | 1,171 | ||||||||||||||
Marine | 14,983 | 14,757 | 5,708 | ||||||||||||||
Total pro rata reinsurance | 41,883 | 47,648 | 30,461 | ||||||||||||||
Excess of loss reinsurance: | |||||||||||||||||
Property | 64,956 | 64,069 | 59,537 | ||||||||||||||
Liability | 11,408 | 11,070 | 11,698 | ||||||||||||||
Surety | 94 | — | 11 | ||||||||||||||
Total excess of loss reinsurance | 76,458 | 75,139 | 71,246 | ||||||||||||||
Total reinsurance | $ | 118,341 | $ | 122,787 | $ | 101,707 | |||||||||||
Consolidated | $ | 540,722 | $ | 515,506 | $ | 458,846 | |||||||||||
DISCLOSURES_ABOUT_THE_FAIR_VAL1
DISCLOSURES ABOUT THE FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||
Summary of carrying amount and estimated fair value of financial instruments | The carrying amount and the estimated fair value of the Company’s financial instruments is summarized below. | ||||||||||||||||
Carrying | Estimated | ||||||||||||||||
amount | fair value | ||||||||||||||||
December 31, 2014 | |||||||||||||||||
Assets: | |||||||||||||||||
Fixed maturity securities available-for-sale: | |||||||||||||||||
U.S. treasury | $ | 9,703 | $ | 9,703 | |||||||||||||
U.S. government-sponsored agencies | 215,616 | 215,616 | |||||||||||||||
Obligations of states and political subdivisions | 326,058 | 326,058 | |||||||||||||||
Commercial mortgage-backed | 46,762 | 46,762 | |||||||||||||||
Residential mortgage-backed | 97,953 | 97,953 | |||||||||||||||
Other asset-backed | 16,005 | 16,005 | |||||||||||||||
Corporate | 415,402 | 415,402 | |||||||||||||||
Total fixed maturity securities available-for-sale | 1,127,499 | 1,127,499 | |||||||||||||||
Equity securities available-for-sale: | |||||||||||||||||
Common stocks: | |||||||||||||||||
Financial services | 34,379 | 34,379 | |||||||||||||||
Information technology | 26,865 | 26,865 | |||||||||||||||
Healthcare | 26,852 | 26,852 | |||||||||||||||
Consumer staples | 16,694 | 16,694 | |||||||||||||||
Consumer discretionary | 22,691 | 22,691 | |||||||||||||||
Energy | 22,863 | 22,863 | |||||||||||||||
Industrials | 18,221 | 18,221 | |||||||||||||||
Other | 16,056 | 16,056 | |||||||||||||||
Non-redeemable preferred stocks | 12,415 | 12,415 | |||||||||||||||
Total equity securities available-for-sale | 197,036 | 197,036 | |||||||||||||||
Short-term investments | 53,262 | 53,262 | |||||||||||||||
Liabilities: | |||||||||||||||||
Surplus notes | 25,000 | 12,308 | |||||||||||||||
Carrying | Estimated | ||||||||||||||||
amount | fair value | ||||||||||||||||
December 31, 2013 | |||||||||||||||||
Assets: | |||||||||||||||||
Fixed maturity securities available-for-sale: | |||||||||||||||||
U.S. treasury | $ | 9,412 | $ | 9,412 | |||||||||||||
U.S. government-sponsored agencies | 146,946 | 146,946 | |||||||||||||||
Obligations of states and political subdivisions | 357,052 | 357,052 | |||||||||||||||
Commercial mortgage-backed | 68,939 | 68,939 | |||||||||||||||
Residential mortgage-backed | 94,179 | 94,179 | |||||||||||||||
Other asset-backed | 12,648 | 12,648 | |||||||||||||||
Corporate | 338,808 | 338,808 | |||||||||||||||
Total fixed maturity securities available-for-sale | 1,027,984 | 1,027,984 | |||||||||||||||
Equity securities available-for-sale: | |||||||||||||||||
Common stocks: | |||||||||||||||||
Financial services | 28,498 | 28,498 | |||||||||||||||
Information technology | 18,917 | 18,917 | |||||||||||||||
Healthcare | 21,945 | 21,945 | |||||||||||||||
Consumer staples | 13,011 | 13,011 | |||||||||||||||
Consumer discretionary | 21,031 | 21,031 | |||||||||||||||
Energy | 21,117 | 21,117 | |||||||||||||||
Industrials | 17,264 | 17,264 | |||||||||||||||
Other | 17,811 | 17,811 | |||||||||||||||
Non-redeemable preferred stocks | 10,254 | 10,254 | |||||||||||||||
Total equity securities available-for-sale | 169,848 | 169,848 | |||||||||||||||
Short-term investments | 56,166 | 56,166 | |||||||||||||||
Liabilities: | |||||||||||||||||
Surplus notes | 25,000 | 10,040 | |||||||||||||||
Summary of assets and liabilities measured on recurring and non-recurring basis | Presented in the table below are the estimated fair values of the Company’s financial instruments as of December 31, 2014 and 2013. | ||||||||||||||||
Fair value measurements using | |||||||||||||||||
31-Dec-14 | Total | Quoted | Significant | Significant | |||||||||||||
prices in | other | unobservable | |||||||||||||||
active markets | observable | inputs | |||||||||||||||
for identical | inputs | (Level 3) | |||||||||||||||
assets | (Level 2) | ||||||||||||||||
(Level 1) | |||||||||||||||||
Financial instruments reported at fair value on recurring basis: | |||||||||||||||||
Assets: | |||||||||||||||||
Fixed maturity securities available-for-sale: | |||||||||||||||||
U.S. treasury | $ | 9,703 | $ | — | $ | 9,703 | $ | — | |||||||||
U.S. government-sponsored agencies | 215,616 | — | 215,616 | — | |||||||||||||
Obligations of states and political subdivisions | 326,058 | — | 326,058 | — | |||||||||||||
Commercial mortgage-backed | 46,762 | — | 46,762 | — | |||||||||||||
Residential mortgage-backed | 97,953 | — | 97,953 | — | |||||||||||||
Other asset-backed | 16,005 | — | 16,005 | — | |||||||||||||
Corporate | 415,402 | — | 413,740 | 1,662 | |||||||||||||
Total fixed maturity securities available-for-sale | 1,127,499 | — | 1,125,837 | 1,662 | |||||||||||||
Equity securities available-for-sale: | |||||||||||||||||
Common stocks: | |||||||||||||||||
Financial services | 34,379 | 34,376 | — | 3 | |||||||||||||
Information technology | 26,865 | 26,865 | — | — | |||||||||||||
Healthcare | 26,852 | 26,852 | — | — | |||||||||||||
Consumer staples | 16,694 | 16,694 | — | — | |||||||||||||
Consumer discretionary | 22,691 | 22,691 | — | — | |||||||||||||
Energy | 22,863 | 22,863 | — | — | |||||||||||||
Industrials | 18,221 | 18,221 | — | — | |||||||||||||
Other | 16,056 | 16,056 | — | — | |||||||||||||
Non-redeemable preferred stocks | 12,415 | 7,745 | 4,670 | — | |||||||||||||
Total equity securities available-for-sale | 197,036 | 192,363 | 4,670 | 3 | |||||||||||||
Short-term investments | 53,262 | 53,262 | — | — | |||||||||||||
Financial instruments not reported at fair value: | |||||||||||||||||
Liabilities: | |||||||||||||||||
Surplus notes | 12,308 | — | — | 12,308 | |||||||||||||
Fair value measurements using | |||||||||||||||||
31-Dec-13 | Total | Quoted | Significant | Significant | |||||||||||||
prices in | other | unobservable | |||||||||||||||
active markets | observable | inputs | |||||||||||||||
for identical | inputs | (Level 3) | |||||||||||||||
assets | (Level 2) | ||||||||||||||||
(Level 1) | |||||||||||||||||
Financial instruments reported at fair value on recurring basis: | |||||||||||||||||
Assets: | |||||||||||||||||
Fixed maturity securities available-for-sale: | |||||||||||||||||
U.S. treasury | $ | 9,412 | $ | — | $ | 9,412 | $ | — | |||||||||
U.S. government-sponsored agencies | 146,946 | — | 146,946 | — | |||||||||||||
Obligations of states and political subdivisions | 357,052 | — | 357,052 | — | |||||||||||||
Commercial mortgage-backed | 68,939 | — | 68,939 | — | |||||||||||||
Residential mortgage-backed | 94,179 | — | 94,179 | — | |||||||||||||
Other asset-backed | 12,648 | — | 12,648 | — | |||||||||||||
Corporate | 338,808 | — | 336,832 | 1,976 | |||||||||||||
Total fixed maturity securities available-for-sale | 1,027,984 | — | 1,026,008 | 1,976 | |||||||||||||
Equity securities available-for-sale: | |||||||||||||||||
Common stocks: | |||||||||||||||||
Financial services | 28,498 | 28,495 | — | 3 | |||||||||||||
Information technology | 18,917 | 18,917 | — | — | |||||||||||||
Healthcare | 21,945 | 21,945 | — | — | |||||||||||||
Consumer staples | 13,011 | 13,011 | — | — | |||||||||||||
Consumer discretionary | 21,031 | 21,031 | — | — | |||||||||||||
Energy | 21,117 | 21,117 | — | — | |||||||||||||
Industrials | 17,264 | 17,264 | — | — | |||||||||||||
Other | 17,811 | 17,811 | — | — | |||||||||||||
Non-redeemable preferred stocks | 10,254 | 5,795 | 4,459 | — | |||||||||||||
Total equity securities available-for-sale | 169,848 | 165,386 | 4,459 | 3 | |||||||||||||
Short-term investments | 56,166 | 56,166 | — | — | |||||||||||||
Financial instruments not reported at fair value: | |||||||||||||||||
Liabilities: | |||||||||||||||||
Surplus notes | 10,040 | — | — | 10,040 | |||||||||||||
Reconciliation of assets measured at fair value on recurring basis using significant unobservable inputs | Presented in the table below is a reconciliation of the assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the years ended December 31, 2014 and 2013. Any unrealized gains or losses on these securities are recognized in other comprehensive income. Any gains or losses from disposals or impairments of these securities are reported as realized investment gains or losses in net income. | ||||||||||||||||
Fair value measurements using significant unobservable inputs (Level 3) | |||||||||||||||||
Fixed maturity securities available-for-sale, corporate | Equity securities | Total | |||||||||||||||
available-for-sale, | |||||||||||||||||
financial services | |||||||||||||||||
Balance at December 31, 2012 | $ | — | $ | 2 | $ | 2 | |||||||||||
Purchases | 1,972 | — | 1,972 | ||||||||||||||
Settlements | (1 | ) | — | (1 | ) | ||||||||||||
Unrealized gains included in other comprehensive income (loss) | 5 | 1 | 6 | ||||||||||||||
Balance at December 31, 2013 | 1,976 | 3 | 1,979 | ||||||||||||||
Settlements | (322 | ) | — | (322 | ) | ||||||||||||
Unrealized gains included in other comprehensive income (loss) | 8 | — | 8 | ||||||||||||||
Balance at December 31, 2014 | $ | 1,662 | $ | 3 | $ | 1,665 | |||||||||||
INVESTMENTS_Tables
INVESTMENTS (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||
Reconciliation of available-for-sale securities from cost basis to fair value | The amortized cost and estimated fair value of securities available-for-sale as of December 31, 2014 and 2013 are as follows. All securities are classified as available-for-sale and are carried at fair value. | ||||||||||||||||||||||||
December 31, 2014 | Amortized | Gross | Gross | Estimated | |||||||||||||||||||||
cost | unrealized | unrealized | fair value | ||||||||||||||||||||||
gains | losses | ||||||||||||||||||||||||
Securities available-for-sale: | |||||||||||||||||||||||||
Fixed maturity securities: | |||||||||||||||||||||||||
U.S. treasury | $ | 9,574 | $ | 129 | $ | — | $ | 9,703 | |||||||||||||||||
U.S. government-sponsored agencies | 215,425 | 2,313 | 2,122 | 215,616 | |||||||||||||||||||||
Obligations of states and political subdivisions | 299,258 | 26,840 | 40 | 326,058 | |||||||||||||||||||||
Commercial mortgage-backed | 42,996 | 3,766 | — | 46,762 | |||||||||||||||||||||
Residential mortgage-backed | 100,296 | 1,402 | 3,745 | 97,953 | |||||||||||||||||||||
Other asset-backed | 14,798 | 1,213 | 6 | 16,005 | |||||||||||||||||||||
Corporate | 397,659 | 18,485 | 742 | 415,402 | |||||||||||||||||||||
Total fixed maturity securities | 1,080,006 | 54,148 | 6,655 | 1,127,499 | |||||||||||||||||||||
Equity securities: | |||||||||||||||||||||||||
Common stocks: | |||||||||||||||||||||||||
Financial services | 22,586 | 11,835 | 42 | 34,379 | |||||||||||||||||||||
Information technology | 15,755 | 11,110 | — | 26,865 | |||||||||||||||||||||
Healthcare | 14,673 | 12,179 | — | 26,852 | |||||||||||||||||||||
Consumer staples | 10,584 | 6,112 | 2 | 16,694 | |||||||||||||||||||||
Consumer discretionary | 11,304 | 11,420 | 33 | 22,691 | |||||||||||||||||||||
Energy | 15,837 | 7,458 | 432 | 22,863 | |||||||||||||||||||||
Industrials | 9,658 | 8,596 | 33 | 18,221 | |||||||||||||||||||||
Other | 11,493 | 4,563 | — | 16,056 | |||||||||||||||||||||
Non-redeemable preferred stocks | 12,082 | 617 | 284 | 12,415 | |||||||||||||||||||||
Total equity securities | 123,972 | 73,890 | 826 | 197,036 | |||||||||||||||||||||
Total securities available-for-sale | $ | 1,203,978 | $ | 128,038 | $ | 7,481 | $ | 1,324,535 | |||||||||||||||||
December 31, 2013 | Amortized | Gross | Gross | Estimated | |||||||||||||||||||||
cost | unrealized | unrealized | fair value | ||||||||||||||||||||||
gains | losses | ||||||||||||||||||||||||
Securities available-for-sale: | |||||||||||||||||||||||||
Fixed maturity securities: | |||||||||||||||||||||||||
U.S. treasury | $ | 9,540 | $ | 191 | $ | 319 | $ | 9,412 | |||||||||||||||||
U.S. government-sponsored agencies | 156,981 | 1,356 | 11,391 | 146,946 | |||||||||||||||||||||
Obligations of states and political subdivisions | 346,554 | 15,040 | 4,542 | 357,052 | |||||||||||||||||||||
Commercial mortgage-backed | 63,185 | 5,842 | 88 | 68,939 | |||||||||||||||||||||
Residential mortgage-backed | 96,058 | 1,073 | 2,952 | 94,179 | |||||||||||||||||||||
Other asset-backed | 11,456 | 1,192 | — | 12,648 | |||||||||||||||||||||
Corporate | 325,798 | 16,542 | 3,532 | 338,808 | |||||||||||||||||||||
Total fixed maturity securities | 1,009,572 | 41,236 | 22,824 | 1,027,984 | |||||||||||||||||||||
Equity securities: | |||||||||||||||||||||||||
Common stocks: | |||||||||||||||||||||||||
Financial services | 19,273 | 9,374 | 149 | 28,498 | |||||||||||||||||||||
Information technology | 12,645 | 6,301 | 29 | 18,917 | |||||||||||||||||||||
Healthcare | 12,801 | 9,144 | — | 21,945 | |||||||||||||||||||||
Consumer staples | 9,162 | 3,849 | — | 13,011 | |||||||||||||||||||||
Consumer discretionary | 10,722 | 10,309 | — | 21,031 | |||||||||||||||||||||
Energy | 14,102 | 7,341 | 326 | 21,117 | |||||||||||||||||||||
Industrials | 11,190 | 6,075 | 1 | 17,264 | |||||||||||||||||||||
Other | 13,358 | 4,489 | 36 | 17,811 | |||||||||||||||||||||
Non-redeemable preferred stocks | 10,582 | 316 | 644 | 10,254 | |||||||||||||||||||||
Total equity securities | 113,835 | 57,198 | 1,185 | 169,848 | |||||||||||||||||||||
Total securities available-for-sale | $ | 1,123,407 | $ | 98,434 | $ | 24,009 | $ | 1,197,832 | |||||||||||||||||
Estimated fair value and gross unrealized losses associated with investment securities | The following table sets forth the estimated fair value and gross unrealized losses associated with investment securities that were in an unrealized loss position as of December 31, 2014 and 2013, listed by length of time the securities were in an unrealized loss position. | ||||||||||||||||||||||||
December 31, 2014 | Less than twelve months | Twelve months or longer | Total | ||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||||||
value | losses | value | losses | value | losses | ||||||||||||||||||||
Fixed maturity securities: | |||||||||||||||||||||||||
U.S. government-sponsored agencies | $ | 24,473 | $ | 94 | $ | 97,446 | $ | 2,028 | $ | 121,919 | $ | 2,122 | |||||||||||||
Obligations of states and political subdivisions | — | — | 3,757 | 40 | 3,757 | 40 | |||||||||||||||||||
Commercial mortgage-backed | 1,102 | — | — | — | 1,102 | — | |||||||||||||||||||
Residential mortgage-backed | 21,451 | 1,252 | 21,163 | 2,493 | 42,614 | 3,745 | |||||||||||||||||||
Other asset-backed | 1,889 | 6 | — | — | 1,889 | 6 | |||||||||||||||||||
Corporate | 16,740 | 281 | 28,257 | 461 | 44,997 | 742 | |||||||||||||||||||
Total fixed maturity securities | 65,655 | 1,633 | 150,623 | 5,022 | 216,278 | 6,655 | |||||||||||||||||||
Equity securities: | |||||||||||||||||||||||||
Common stocks: | |||||||||||||||||||||||||
Financial services | 1,162 | 9 | 187 | 33 | 1,349 | 42 | |||||||||||||||||||
Consumer staples | 1,051 | 2 | — | — | 1,051 | 2 | |||||||||||||||||||
Consumer discretionary | 822 | 33 | — | — | 822 | 33 | |||||||||||||||||||
Energy | 4,298 | 432 | — | — | 4,298 | 432 | |||||||||||||||||||
Industrials | 1,406 | 33 | — | — | 1,406 | 33 | |||||||||||||||||||
Non-redeemable preferred stocks | — | — | 1,716 | 284 | 1,716 | 284 | |||||||||||||||||||
Total equity securities | 8,739 | 509 | 1,903 | 317 | 10,642 | 826 | |||||||||||||||||||
Total temporarily impaired securities | $ | 74,394 | $ | 2,142 | $ | 152,526 | $ | 5,339 | $ | 226,920 | $ | 7,481 | |||||||||||||
December 31, 2013 | Less than twelve months | Twelve months or longer | Total | ||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||||||
value | losses | value | losses | value | losses | ||||||||||||||||||||
Fixed maturity securities: | |||||||||||||||||||||||||
U.S. treasury | $ | 4,507 | $ | 319 | $ | — | $ | — | $ | 4,507 | $ | 319 | |||||||||||||
U.S. government-sponsored agencies | 93,856 | 8,120 | 24,053 | 3,271 | 117,909 | 11,391 | |||||||||||||||||||
Obligations of states and political subdivisions | 74,523 | 4,335 | 3,008 | 207 | 77,531 | 4,542 | |||||||||||||||||||
Commercial mortgage-backed | 10,551 | 88 | — | — | 10,551 | 88 | |||||||||||||||||||
Residential mortgage-backed | 44,243 | 2,482 | 4,600 | 470 | 48,843 | 2,952 | |||||||||||||||||||
Corporate | 81,292 | 2,704 | 10,547 | 828 | 91,839 | 3,532 | |||||||||||||||||||
Total fixed maturity securities | 308,972 | 18,048 | 42,208 | 4,776 | 351,180 | 22,824 | |||||||||||||||||||
Equity securities: | |||||||||||||||||||||||||
Common stocks: | |||||||||||||||||||||||||
Financial services | 2,801 | 149 | — | — | 2,801 | 149 | |||||||||||||||||||
Information technology | 610 | 29 | — | — | 610 | 29 | |||||||||||||||||||
Consumer staples | 30 | — | — | — | 30 | — | |||||||||||||||||||
Energy | 1,450 | 326 | — | — | 1,450 | 326 | |||||||||||||||||||
Industrials | 625 | 1 | — | — | 625 | 1 | |||||||||||||||||||
Other | 1,499 | 36 | — | — | 1,499 | 36 | |||||||||||||||||||
Non-redeemable preferred stocks | 2,121 | 128 | 1,484 | 516 | 3,605 | 644 | |||||||||||||||||||
Total equity securities | 9,136 | 669 | 1,484 | 516 | 10,620 | 1,185 | |||||||||||||||||||
Total temporarily impaired securities | $ | 318,108 | $ | 18,717 | $ | 43,692 | $ | 5,292 | $ | 361,800 | $ | 24,009 | |||||||||||||
Amortized cost and estimated fair value of fixed maturity securities | The amortized cost and estimated fair value of fixed maturity securities at December 31, 2014, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations, with or without call or prepayment penalties. | ||||||||||||||||||||||||
Amortized | Estimated | ||||||||||||||||||||||||
cost | fair value | ||||||||||||||||||||||||
Securities available-for-sale: | |||||||||||||||||||||||||
Due in one year or less | $ | 33,469 | $ | 33,945 | |||||||||||||||||||||
Due after one year through five years | 194,140 | 204,973 | |||||||||||||||||||||||
Due after five years through ten years | 223,145 | 229,778 | |||||||||||||||||||||||
Due after ten years | 485,960 | 514,088 | |||||||||||||||||||||||
Mortgage-backed securities | 143,292 | 144,715 | |||||||||||||||||||||||
Totals | $ | 1,080,006 | $ | 1,127,499 | |||||||||||||||||||||
Summary of realized investment gains and (losses) | A summary of realized investment gains and (losses) is as follows: | ||||||||||||||||||||||||
Year ended December 31, | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Fixed maturity securities available-for-sale: | |||||||||||||||||||||||||
Gross realized investment gains | $ | 979 | $ | 1,226 | $ | 795 | |||||||||||||||||||
Gross realized investment losses | (92 | ) | (725 | ) | (10 | ) | |||||||||||||||||||
"Other-than-temporary" impairments | (1 | ) | — | — | |||||||||||||||||||||
Equity securities available-for-sale: | |||||||||||||||||||||||||
Gross realized investment gains | 8,913 | 9,458 | 9,984 | ||||||||||||||||||||||
Gross realized investment losses | (1,727 | ) | (899 | ) | (2,566 | ) | |||||||||||||||||||
"Other-than-temporary" impairments | (877 | ) | (63 | ) | (186 | ) | |||||||||||||||||||
Other long-term investments: | |||||||||||||||||||||||||
Gross realized investment losses | (2,846 | ) | — | — | |||||||||||||||||||||
Totals | $ | 4,349 | $ | 8,997 | $ | 8,017 | |||||||||||||||||||
Summary of net investment income | A summary of net investment income is as follows: | ||||||||||||||||||||||||
Year ended December 31, | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Interest on fixed maturity securities | $ | 41,932 | $ | 40,062 | $ | 41,699 | |||||||||||||||||||
Dividends on equity securities | 6,007 | 4,619 | 3,852 | ||||||||||||||||||||||
Interest on short-term investments | — | 27 | 129 | ||||||||||||||||||||||
Return on long-term investments | 297 | 22 | 12 | ||||||||||||||||||||||
Total investment income | 48,236 | 44,730 | 45,692 | ||||||||||||||||||||||
Securities litigation income | 107 | 219 | 58 | ||||||||||||||||||||||
Investment expenses | (1,878 | ) | (1,927 | ) | (1,605 | ) | |||||||||||||||||||
Net investment income | $ | 46,465 | $ | 43,022 | $ | 44,145 | |||||||||||||||||||
Summary of net changes in unrealized holding gains (losses) on securities available-for-sale | A summary of net changes in unrealized holding gains (losses) on securities available-for-sale is as follows: | ||||||||||||||||||||||||
Year ended December 31, | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Fixed maturity securities | $ | 29,081 | $ | (60,540 | ) | $ | 20,687 | ||||||||||||||||||
Deferred income tax expense (benefit) | 10,179 | (21,189 | ) | 7,240 | |||||||||||||||||||||
Total fixed maturity securities | 18,902 | (39,351 | ) | 13,447 | |||||||||||||||||||||
Equity securities | 17,051 | 27,571 | 8,008 | ||||||||||||||||||||||
Deferred income tax expense | 5,967 | 9,650 | 2,803 | ||||||||||||||||||||||
Total equity securities | 11,084 | 17,921 | 5,205 | ||||||||||||||||||||||
Total available-for-sale securities | $ | 29,986 | $ | (21,430 | ) | $ | 18,652 | ||||||||||||||||||
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | Temporary differences between the consolidated financial statement carrying amount and tax basis of assets and liabilities that give rise to significant portions of the deferred income tax asset (liability) at December 31, 2014 and 2013 are as follows: | ||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Loss reserve discounting | $ | 15,681 | $ | 17,690 | |||||||||
Unearned premium reserve limitation | 15,648 | 14,764 | |||||||||||
Other policyholders' funds payable | 3,553 | 2,972 | |||||||||||
Other, net | 1,145 | 1,761 | |||||||||||
Total deferred income tax asset | 36,027 | 37,187 | |||||||||||
Net unrealized holding gains on investment securities | (42,195 | ) | (26,049 | ) | |||||||||
Deferred policy acquisition costs | (13,770 | ) | (13,227 | ) | |||||||||
Retirement benefits | (5,712 | ) | (8,234 | ) | |||||||||
Other, net | (3,004 | ) | (2,499 | ) | |||||||||
Total deferred income tax liability | (64,681 | ) | (50,009 | ) | |||||||||
Net deferred income tax liability | $ | (28,654 | ) | $ | (12,822 | ) | |||||||
Reconciliation of income tax expense (benefit) | The actual income tax expense for the years ended December 31, 2014, 2013 and 2012 differed from the “expected” income tax expense for those years (computed by applying the United States federal corporate tax rate of 35 percent to income before income tax expense) as follows: | ||||||||||||
Year ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Computed "expected" income tax expense | $ | 14,318 | $ | 21,298 | $ | 18,072 | |||||||
Increases (decreases) in tax resulting from: | |||||||||||||
Tax-exempt interest income | (3,285 | ) | (3,828 | ) | (4,433 | ) | |||||||
Dividends received deduction | (828 | ) | (876 | ) | (723 | ) | |||||||
Proration of tax-exempt interest and dividends received deduction | 617 | 706 | 773 | ||||||||||
Other, net | 93 | 34 | (22 | ) | |||||||||
Total income tax expense | $ | 10,915 | $ | 17,334 | $ | 13,667 | |||||||
Schedule Of Components Of Comprehensive Income Tax Expense Benefit [Table Text Block] | Comprehensive income tax expense included in the consolidated financial statements for the years ended December 31, 2014, 2013 and 2012 is as follows: | ||||||||||||
Year ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Income tax expense (benefit) on: | |||||||||||||
Operations | $ | 10,915 | $ | 17,334 | $ | 13,667 | |||||||
Change in unrealized holding gains on investment securities | 16,146 | (11,539 | ) | 10,043 | |||||||||
Change in funded status of retirement benefit plans: | |||||||||||||
Pension plans | (2,619 | ) | 5,498 | 598 | |||||||||
Postretirement benefit plans | (1,330 | ) | 12,103 | 350 | |||||||||
Comprehensive income tax expense | $ | 23,112 | $ | 23,396 | $ | 24,658 | |||||||
EMPLOYEE_RETIREMENT_PLANS_Tabl
EMPLOYEE RETIREMENT PLANS (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | |||||||||||||||||
Schedule of funded status of Employers Mutual's pension and postretirement benefit plans | The following table sets forth the funded status of Employers Mutual’s pension and postretirement benefit plans as of December 31, 2014 and 2013, based upon measurement dates of December 31, 2014 and 2013, respectively. | ||||||||||||||||
Pension plans | Postretirement benefit plans | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Change in projected benefit obligation: | |||||||||||||||||
Benefit obligation at beginning of year | $ | 239,109 | $ | 247,290 | $ | 50,006 | $ | 155,102 | |||||||||
Service cost | 12,863 | 13,213 | 1,260 | 6,300 | |||||||||||||
Interest cost | 9,664 | 7,656 | 2,254 | 6,172 | |||||||||||||
Actuarial (gain) loss | 19,257 | (14,459 | ) | 3,516 | (18,582 | ) | |||||||||||
Benefits paid | (13,764 | ) | (14,591 | ) | (2,533 | ) | (2,588 | ) | |||||||||
Medicare subsidy reimbursements | — | — | — | 306 | |||||||||||||
Plan amendments | — | — | — | (96,704 | ) | ||||||||||||
Projected benefit obligation at end of year | 267,129 | 239,109 | 54,503 | 50,006 | |||||||||||||
Change in plan assets: | |||||||||||||||||
Fair value of plan assets at beginning of year | 288,750 | 240,034 | 67,276 | 57,815 | |||||||||||||
Actual return on plan assets | 15,029 | 48,623 | 4,547 | 11,549 | |||||||||||||
Employer contributions | 7,833 | 14,684 | — | 500 | |||||||||||||
Benefits paid | (13,764 | ) | (14,591 | ) | (2,533 | ) | (2,588 | ) | |||||||||
Fair value of plan assets at end of year | 297,848 | 288,750 | 69,290 | 67,276 | |||||||||||||
Funded status | $ | 30,719 | $ | 49,641 | $ | 14,787 | $ | 17,270 | |||||||||
Schedule of amounts recognized in consolidated balance sheet | Amounts recognized in the Company’s consolidated balance sheets: | ||||||||||||||||
Pension plans | Postretirement benefit plans | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Assets: | |||||||||||||||||
Prepaid pension and postretirement benefits | $ | 13,267 | $ | 18,310 | $ | 4,093 | $ | 4,811 | |||||||||
Liability: | |||||||||||||||||
Pension and postretirement benefits | (4,162 | ) | (3,401 | ) | — | — | |||||||||||
Net amount recognized | $ | 9,105 | $ | 14,909 | $ | 4,093 | $ | 4,811 | |||||||||
Schedule of amounts recognized in consolidated balance sheets under the caption accumulated other comprehensive income | Amounts recognized in the Company’s consolidated balance sheets under the caption “accumulated other comprehensive income”, before deferred income taxes: | ||||||||||||||||
Pension plans | Postretirement benefit plans | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Net actuarial loss | $ | (15,097 | ) | $ | (7,606 | ) | $ | (7,258 | ) | $ | (6,827 | ) | |||||
Prior service (cost) credit | (25 | ) | (34 | ) | 27,458 | 30,828 | |||||||||||
Net amount recognized | $ | (15,122 | ) | $ | (7,640 | ) | $ | 20,200 | $ | 24,001 | |||||||
Schedule of amounts recognized in consolidated statements of comprehensive income | Amounts recognized in the Company’s consolidated statements of comprehensive income, before deferred income taxes: | ||||||||||||||||
Pension plans | Postretirement benefit plans | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Net actuarial gain (loss) | $ | (7,492 | ) | $ | 15,694 | $ | (431 | ) | $ | 8,306 | |||||||
Prior service (cost) credit | 10 | 15 | (3,370 | ) | 26,274 | ||||||||||||
Net amount recognized | $ | (7,482 | ) | $ | 15,709 | $ | (3,801 | ) | $ | 34,580 | |||||||
Schedule of projected benefit obligation, accumulated benefit obligation and fair value of plan assets | The following table sets forth the projected benefit obligation, accumulated benefit obligation and fair value of plan assets of Employers Mutual’s non-qualified pension plan. The amounts related to the qualified pension plan are not included since the plan assets exceeded the accumulated benefit obligation. | ||||||||||||||||
Year ended December 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Projected benefit obligation | $ | 13,057 | $ | 10,856 | |||||||||||||
Accumulated benefit obligation | 12,121 | 10,485 | |||||||||||||||
Fair value of plan assets | — | — | |||||||||||||||
Components of net periodic benefit cost | The components of net periodic benefit cost (income) for Employers Mutual’s pension and postretirement benefit plans is as follows: | ||||||||||||||||
Year ended December 31, | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Pension plans: | |||||||||||||||||
Service cost | $ | 12,863 | $ | 13,213 | $ | 12,386 | |||||||||||
Interest cost | 9,664 | 7,656 | 8,819 | ||||||||||||||
Expected return on plan assets | (20,733 | ) | (17,150 | ) | (14,926 | ) | |||||||||||
Amortization of net actuarial loss | 366 | 5,962 | 6,809 | ||||||||||||||
Amortization of prior service cost | 31 | 50 | 291 | ||||||||||||||
Net periodic pension benefit cost | $ | 2,191 | $ | 9,731 | $ | 13,379 | |||||||||||
Postretirement benefit plans: | |||||||||||||||||
Service cost | $ | 1,260 | $ | 6,300 | $ | 6,150 | |||||||||||
Interest cost | 2,254 | 6,172 | 6,537 | ||||||||||||||
Expected return on plan assets | (4,396 | ) | (3,631 | ) | (3,219 | ) | |||||||||||
Amortization of net actuarial loss | 1,651 | 3,694 | 4,008 | ||||||||||||||
Amortization of prior service credit | (11,466 | ) | (2,491 | ) | (2,131 | ) | |||||||||||
Net periodic postretirement benefit cost (income) | $ | (10,697 | ) | $ | 10,044 | $ | 11,345 | ||||||||||
Schedule of weighted-average assumptions used | The weighted-average assumptions used to measure the benefit obligations are as follows: | ||||||||||||||||
Year ended December 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Pension plans: | |||||||||||||||||
Discount rate | 3.57 | % | 4.17 | % | |||||||||||||
Rate of compensation increase: | |||||||||||||||||
Qualified pension plan | 4.73 | % | 4.73 | % | |||||||||||||
Non-qualified pension plan | 4.68 | % | 4.68 | % | |||||||||||||
Postretirement benefit plans: | |||||||||||||||||
Discount rate | 4.04 | % | 4.71 | % | |||||||||||||
The weighted-average assumptions used to measure the net periodic benefit costs are as follows: | |||||||||||||||||
Year ended December 31, | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Pension plans: | |||||||||||||||||
Discount rate | 4.17 | % | 3.24 | % | 4.13 | % | |||||||||||
Expected long-term rate of return on plan assets | 7.25 | % | 7.25 | % | 7.25 | % | |||||||||||
Rate of compensation increase: | |||||||||||||||||
Qualified pension plan | 4.73 | % | 4.73 | % | 4.73 | % | |||||||||||
Non-qualified pension plan | 4.68 | % | 4.68 | % | 4.68 | % | |||||||||||
Postretirement benefit plans: | |||||||||||||||||
Discount rate | 4.71 | % | 4.03 | % | 4.59 | % | |||||||||||
Expected long-term rate of return on plan assets | 6.75 | % | 6.5 | % | 6.25 | % | |||||||||||
Schedule of assumed health care cost trend rates | The expected long-term rates of return on plan assets were developed considering actual historical results, current and expected market conditions, plan asset mix and management’s investment strategy. Due to the planned conversion of the postretirement health care plan to an HRA effective January 1, 2015, an assumption for the health care cost trend rate is no longer necessary. | ||||||||||||||||
Year ended December 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Assumed health care cost trend rate: | |||||||||||||||||
Health care cost trend rate assumed for next year | N/A | 7.5 | % | ||||||||||||||
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) | N/A | 5 | % | ||||||||||||||
Year that the rate reaches the ultimate trend rate | N/A | 2024 | |||||||||||||||
Schedule of expected future benefit payments | The following benefit payments, which reflect expected future service, are expected to be paid from the plans over the next ten years: | ||||||||||||||||
Pension benefits | Postretirement benefits | ||||||||||||||||
2015 | $ | 23,982 | $ | 2,698 | |||||||||||||
2016 | 21,655 | 2,861 | |||||||||||||||
2017 | 21,601 | 2,966 | |||||||||||||||
2018 | 22,418 | 3,172 | |||||||||||||||
2019 | 23,668 | 3,259 | |||||||||||||||
2020 - 2024 | 119,109 | 16,966 | |||||||||||||||
Employers Mutual VEBA Trust | |||||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||||||||||
Schedule of fair value of plan assets | The fair values of the assets held in Employers Mutual’s VEBA trust are as follows: | ||||||||||||||||
Fair value measurements using | |||||||||||||||||
December 31, 2014 | Total | Quoted | Significant | Significant | |||||||||||||
prices in | other | unobservable | |||||||||||||||
active markets | observable | inputs | |||||||||||||||
for identical | inputs | (Level 3) | |||||||||||||||
assets | (Level 2) | ||||||||||||||||
(Level 1) | |||||||||||||||||
Money market fund | $ | 4,644 | $ | 4,644 | $ | — | $ | — | |||||||||
Emerging markets ETF | 4,187 | 4,187 | — | — | |||||||||||||
Mutual funds: | |||||||||||||||||
Equity | 36,451 | 36,451 | — | — | |||||||||||||
Tax-exempt fixed income | 3,425 | 3,425 | — | — | |||||||||||||
International equity | 7,175 | 7,175 | — | — | |||||||||||||
Life insurance contracts | 13,408 | — | — | 13,408 | |||||||||||||
Total benefit plan assets | $ | 69,290 | $ | 55,882 | $ | — | $ | 13,408 | |||||||||
Fair value measurements using | |||||||||||||||||
December 31, 2013 | Total | Quoted | Significant | Significant | |||||||||||||
prices in | other | unobservable | |||||||||||||||
active markets | observable | inputs | |||||||||||||||
for identical | inputs | (Level 3) | |||||||||||||||
assets | (Level 2) | ||||||||||||||||
(Level 1) | |||||||||||||||||
Money market fund | $ | 575 | $ | 575 | $ | — | $ | — | |||||||||
Emerging markets ETF | 3,224 | 3,224 | — | — | |||||||||||||
Mutual funds: | |||||||||||||||||
Equity | 39,710 | 39,710 | — | — | |||||||||||||
Tax-exempt fixed income | 2,865 | 2,865 | — | — | |||||||||||||
International equity | 7,675 | 7,675 | — | — | |||||||||||||
Life insurance contracts | 13,227 | — | — | 13,227 | |||||||||||||
Total benefit plan assets | $ | 67,276 | $ | 54,049 | $ | — | $ | 13,227 | |||||||||
Reconciliation of assets measured at fair value using significant unobservable inputs | Presented below is a reconciliation of the assets measured at fair value using significant unobservable inputs (Level 3) for the years ended December 31, 2014 and 2013. | ||||||||||||||||
Fair value measurements | |||||||||||||||||
using significant | |||||||||||||||||
unobservable inputs (Level 3) | |||||||||||||||||
Life insurance contracts | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Balance at beginning of year | $ | 13,227 | $ | 12,872 | |||||||||||||
Actual return on plan assets: | |||||||||||||||||
Increase in cash accumulation value of life insurance contracts | 367 | 355 | |||||||||||||||
Gain on life insurance death benefit | 89 | — | |||||||||||||||
Settlement of life insurance death benefit | (275 | ) | — | ||||||||||||||
Balance at end of year | $ | 13,408 | $ | 13,227 | |||||||||||||
Employers Mutual Defined Benefit Retirement Plan | |||||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||||||||||
Schedule of fair value of plan assets | The fair values of the assets held in Employers Mutual’s defined benefit retirement plan are as follows: | ||||||||||||||||
Fair value measurements using | |||||||||||||||||
December 31, 2014 | Total | Quoted | Significant | Significant | |||||||||||||
prices in | other | unobservable | |||||||||||||||
active markets | observable | inputs | |||||||||||||||
for identical | inputs | (Level 3) | |||||||||||||||
assets | (Level 2) | ||||||||||||||||
(Level 1) | |||||||||||||||||
Bond and mortgage separate account | $ | 34,901 | $ | — | $ | 34,901 | $ | — | |||||||||
Pooled separate accounts: | |||||||||||||||||
U.S. stock funds | 119,577 | — | 119,577 | — | |||||||||||||
International stock funds | 57,955 | — | 57,955 | — | |||||||||||||
U.S. bond funds | 63,443 | — | 63,443 | — | |||||||||||||
Real estate fund | 17,735 | — | 17,735 | — | |||||||||||||
Short-term funds | 4,237 | — | 4,237 | — | |||||||||||||
Total benefit plan assets | $ | 297,848 | $ | — | $ | 297,848 | $ | — | |||||||||
Fair value measurements using | |||||||||||||||||
December 31, 2013 | Total | Quoted | Significant | Significant | |||||||||||||
prices in | other | unobservable | |||||||||||||||
active markets | observable | inputs | |||||||||||||||
for identical | inputs | (Level 3) | |||||||||||||||
assets | (Level 2) | ||||||||||||||||
(Level 1) | |||||||||||||||||
Bond and mortgage separate account | $ | 32,843 | $ | — | $ | 32,843 | $ | — | |||||||||
Pooled separate accounts: | |||||||||||||||||
U.S. stock funds | 110,279 | — | 110,279 | — | |||||||||||||
International stock funds | 62,840 | — | 62,840 | — | |||||||||||||
U.S. bond funds | 60,200 | — | 60,200 | — | |||||||||||||
Real estate fund | 13,758 | — | 13,758 | — | |||||||||||||
Short-term funds | 7,672 | — | 7,672 | — | |||||||||||||
Real estate securities fund | 1,158 | 1,158 | — | — | |||||||||||||
Total benefit plan assets | $ | 288,750 | $ | 1,158 | $ | 287,592 | $ | — | |||||||||
STOCKBASED_COMPENSATION_Tables
STOCK-BASED COMPENSATION (Tables) | 12 Months Ended | |||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||||||||||
Summary of the activity under Employers Mutual's stock option plans | A summary of the stock option activity under Employers Mutual’s stock plans for 2014, 2013 and 2012 is as follows: | |||||||||||||||||||||
Year ended December 31, | ||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||
Number | Weighted- | Number | Weighted- | Number | Weighted- | |||||||||||||||||
of | average | of | average | of | average | |||||||||||||||||
options | exercise | options | exercise | options | exercise | |||||||||||||||||
price | price | price | ||||||||||||||||||||
Outstanding, beginning of year | 1,135,207 | $ | 22.17 | 1,588,958 | $ | 21.89 | 1,437,095 | $ | 21.92 | |||||||||||||
Granted | — | — | — | — | 263,162 | 20.98 | ||||||||||||||||
Exercised | (200,304 | ) | 21.36 | (406,532 | ) | 21.26 | (42,619 | ) | 17.97 | |||||||||||||
Expired | (22,945 | ) | 22.52 | (47,219 | ) | 20.35 | (68,680 | ) | 21.51 | |||||||||||||
Forfeited | (10,825 | ) | 22.94 | — | — | — | — | |||||||||||||||
Outstanding, end of year | 901,133 | $ | 22.34 | 1,135,207 | $ | 22.17 | 1,588,958 | $ | 21.89 | |||||||||||||
Exercisable, end of year | 642,464 | $ | 22.41 | 686,863 | $ | 22.37 | 894,706 | $ | 21.96 | |||||||||||||
Schedule of weighted-average assumptions fair value of each option grant using the Black-Scholes-Merton option-pricing model | Employers Mutual uses the average of the high and low trading prices of the Company's stock on the date of grant to determine the fair value of its restricted stock awards. Employers Mutual estimated the fair value of the 2012 option grant on the date of grant using the Black-Scholes-Merton option-pricing model with the following weighted-average assumptions: | |||||||||||||||||||||
Year ended December 31, | ||||||||||||||||||||||
2012 | ||||||||||||||||||||||
Estimated dividend yield | 3.81 | % | ||||||||||||||||||||
Expected volatility | 25.2% - 44.7% | |||||||||||||||||||||
Weighted-average volatility | 35.61 | % | ||||||||||||||||||||
Risk-free interest rate | 0.06% - 1.51% | |||||||||||||||||||||
Expected term (years) | 0.25 - 6.40 | |||||||||||||||||||||
Summary of non-vested share activity | At December 31, 2014, the Company’s portion of the unrecognized compensation cost associated with restricted stock awards issued under Employers Mutual’s stock plans that are not currently vested was $690, with a 2.76 year weighted-average period over which the compensation expense is expected to be recognized. A summary of non-vested restricted stock activity under Employers Mutual’s stock plans for 2014 and 2013 is as follows: | |||||||||||||||||||||
Year ended December 31, | ||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||
Number | Weighted- | Number | Weighted- | |||||||||||||||||||
of | average | of | average | |||||||||||||||||||
awards | grant-date | awards | grant-date | |||||||||||||||||||
fair value | fair value | |||||||||||||||||||||
Non-vested, beginning of year | 56,668 | $ | 25.9 | — | $ | — | ||||||||||||||||
Granted | 62,764 | 30.74 | 57,720 | 25.9 | ||||||||||||||||||
Vested | (14,117 | ) | 25.9 | — | — | |||||||||||||||||
Forfeited | (1,375 | ) | 26.61 | (1,052 | ) | 25.9 | ||||||||||||||||
Non-vested, end of year | 103,940 | $ | 28.81 | 56,668 | $ | 25.9 | ||||||||||||||||
Summary of additional information relating to options outstanding and options vested (exercisable) | The Company’s portion of the total intrinsic value of options exercised under Employers Mutual’s stock plans was $606, $844 and $54 in 2014, 2013 and 2012, respectively. Under the terms of the pooling and quota share agreements, these amounts were paid to Employers Mutual. The Company receives the full fair value, as of the exercise date, for all shares issued in connection with option exercises. The Company also receives the full fair value, as of the grant date, for all shares issued in connection with the grant of restricted stock awards. The Company's portion of the total fair value of restricted stock awards that vested in 2014 was $110 (no restricted stock awards vested prior to 2014). Additional information relating to options outstanding and options vested (exercisable) at December 31, 2014 is as follows: | |||||||||||||||||||||
December 31, 2014 | ||||||||||||||||||||||
Number of options | Weighted-average exercise price | Aggregate intrinsic value | Weighted-average remaining term | |||||||||||||||||||
Options outstanding | 901,133 | $ | 22.34 | $ | 11,164 | 4.3 | ||||||||||||||||
Options exercisable | 642,464 | $ | 22.41 | $ | 7,912 | 3.61 | ||||||||||||||||
Summary of employee stock purchase plan activity | During 2014, shares were purchased under the plan at prices ranging from $24.93 to $30.32. Activity under the plan was as follows: | |||||||||||||||||||||
Year ended December 31, | ||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||
Shares available for purchase, beginning of year | 339,166 | 370,400 | 407,102 | |||||||||||||||||||
Shares purchased under the plan | (24,860 | ) | (31,234 | ) | (36,702 | ) | ||||||||||||||||
Shares available for purchase, end of year | 314,306 | 339,166 | 370,400 | |||||||||||||||||||
Summary of non-employee director stock option plan activity | During 2014, shares were purchased under the plan at prices ranging from $21.56 to $24.31. Activity under the plan was as follows: | |||||||||||||||||||||
Year ended December 31, | ||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||
Shares available for purchase, beginning of year | 196,165 | 149,404 | 155,467 | |||||||||||||||||||
Shares registered for use in the 2013 plan | — | 200,000 | — | |||||||||||||||||||
Shares deregistered under the 2003 plan | — | (148,204 | ) | — | ||||||||||||||||||
Shares purchased under the plan | (9,626 | ) | (5,035 | ) | (6,063 | ) | ||||||||||||||||
Shares available for purchase, end of year | 186,539 | 196,165 | 149,404 | |||||||||||||||||||
Summary of dividend reinvestment plan activity | Employers Mutual did not participate in this plan in 2014, 2013 or 2012. Activity under the plan was as follows: | |||||||||||||||||||||
Year ended December 31, | ||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||
Shares available for purchase, beginning of year | 658,957 | — | 161,236 | |||||||||||||||||||
Shares registered for use in the plan | — | 661,185 | — | |||||||||||||||||||
Shares deregistered under the plan | — | — | (161,185 | ) | ||||||||||||||||||
Shares purchased under the plan | (4,139 | ) | (2,228 | ) | (51 | ) | ||||||||||||||||
Shares available for purchase, end of year | 654,818 | 658,957 | — | |||||||||||||||||||
Lowest purchase price | $ | 28.03 | $ | 28.11 | $ | 21.38 | ||||||||||||||||
Highest purchase price | $ | 35.39 | $ | 31.47 | $ | 23.22 | ||||||||||||||||
ACCUMULATED_OTHER_COMPREHENSIV1
ACCUMULATED OTHER COMPREHENSIVE INCOME (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||||||||||
Schedule of beginning and ending balances of accumulated other comprehensive income | The following table reconciles, by component, the beginning and ending balances of accumulated other comprehensive income. | ||||||||||||
Accumulated other comprehensive income by component (1) | |||||||||||||
Unrealized | Unrecognized | Total | |||||||||||
gains (losses) on | pension and | ||||||||||||
available-for- | postretirement | ||||||||||||
sale securities | benefit obligations | ||||||||||||
Balance at December 31, 2012 | $ | 69,806 | $ | (22,054 | ) | $ | 47,752 | ||||||
Other comprehensive income (loss) before reclassifications | (15,582 | ) | 31,266 | 15,684 | |||||||||
Amounts reclassified from accumulated other comprehensive income | (5,848 | ) | 1,422 | (4,426 | ) | ||||||||
Other comprehensive income (loss) | (21,430 | ) | 32,688 | 11,258 | |||||||||
Balance at December 31, 2013 | 48,376 | 10,634 | 59,010 | ||||||||||
Other comprehensive income (loss) before reclassifications | 34,663 | (5,560 | ) | 29,103 | |||||||||
Amounts reclassified from accumulated other comprehensive income | (4,677 | ) | (1,774 | ) | (6,451 | ) | |||||||
Other comprehensive income (loss) | 29,986 | (7,334 | ) | 22,652 | |||||||||
Balance at December 31, 2014 | $ | 78,362 | $ | 3,300 | $ | 81,662 | |||||||
-1 | All amounts are net of tax. Amounts in parentheses indicate debits. | ||||||||||||
Amounts reclassified out of accumulated other comprehensive income (loss) | The following tables display amounts reclassified out of accumulated other comprehensive income during the years ended December 31, 2014 and 2013, respectively. | ||||||||||||
Amounts reclassified from accumulated other comprehensive income (1) | |||||||||||||
Accumulated other comprehensive income components | Year ended December 31, 2014 | Affected line item in the consolidated statements of income | |||||||||||
Unrealized gains on investments: | |||||||||||||
Reclassification adjustment for realized investment gains included in net income | $ | 7,195 | Net realized investment gains | ||||||||||
Deferred income tax expense | (2,518 | ) | Income tax expense, current | ||||||||||
Net reclassification adjustment | 4,677 | ||||||||||||
Unrecognized pension and postretirement benefit obligations: | |||||||||||||
Reclassification adjustment for amounts amortized into net periodic pension and postretirement benefit cost (income): | |||||||||||||
Net actuarial loss | (578 | ) | -2 | ||||||||||
Prior service credit | 3,307 | -2 | |||||||||||
Total before tax | 2,729 | ||||||||||||
Deferred income tax expense | (955 | ) | Income tax expense, current | ||||||||||
Net reclassification adjustment | 1,774 | ||||||||||||
Total reclassification adjustment | $ | 6,451 | |||||||||||
-1 | Amounts in parentheses indicate debits to net income | ||||||||||||
-2 | These accumulated other comprehensive income components are included in the computation of net periodic pension and postretirement benefit cost (income) (see Note 12, Employee Retirement Plans, for additional details). | ||||||||||||
Amounts reclassified from accumulated other comprehensive income (1) | |||||||||||||
Accumulated other comprehensive income components | Year ended December 31, 2013 | Affected line item in the consolidated statements of income | |||||||||||
Unrealized gains on investments: | |||||||||||||
Reclassification adjustment for realized investment gains included in net income | $ | 8,997 | Net realized investment gains | ||||||||||
Deferred income tax expense | (3,149 | ) | Income tax expense, current | ||||||||||
Net reclassification adjustment | 5,848 | ||||||||||||
Unrecognized pension and postretirement benefit obligations: | |||||||||||||
Reclassification adjustment for amounts amortized into net periodic pension and postretirement benefit cost (income): | |||||||||||||
Net actuarial loss | (2,895 | ) | -2 | ||||||||||
Prior service credit | 708 | -2 | |||||||||||
Total before tax | (2,187 | ) | |||||||||||
Deferred income tax expense | 765 | Income tax expense, current | |||||||||||
Net reclassification adjustment | (1,422 | ) | |||||||||||
Total reclassification adjustment | $ | 4,426 | |||||||||||
-1 | Amounts in parentheses indicate debits to net income | ||||||||||||
-2 | These accumulated other comprehensive income components are included in the computation of net periodic pension and postretirement benefit cost (income) (see Note 12, Employee Retirement Plans, for additional details). |
LEASES_COMMITMENTS_AND_CONTING1
LEASES, COMMITMENTS AND CONTINGENT LIABILITIES (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||
Schedule of lease commitments | The following table reflects the lease commitments of the Company as of December 31, 2014. | ||||||||||||||||||||
Payments due by period | |||||||||||||||||||||
Total | Less than | 3-Jan | 5-Apr | More than | |||||||||||||||||
1 year | years | years | 5 years | ||||||||||||||||||
Lease commitments | |||||||||||||||||||||
Real estate operating leases | $ | 8,632 | $ | 1,341 | $ | 2,510 | $ | 2,287 | $ | 2,494 | |||||||||||
UNAUDITED_INTERIM_FINANCIAL_IN1
UNAUDITED INTERIM FINANCIAL INFORMATION (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||
Schedule of unaudited interim financial information | |||||||||||||||||
Three months ended, | |||||||||||||||||
31-Mar | 30-Jun | 30-Sep | 31-Dec | ||||||||||||||
2014 | |||||||||||||||||
Total revenues (1) | $ | 146,231 | $ | 147,733 | $ | 150,659 | $ | 149,844 | |||||||||
Income before income tax expense | $ | 14,889 | $ | 270 | $ | 1,883 | $ | 23,865 | |||||||||
Income tax expense (benefit) | 4,294 | (744 | ) | (346 | ) | 7,711 | |||||||||||
Net income | $ | 10,595 | $ | 1,014 | $ | 2,229 | $ | 16,154 | |||||||||
Net income per common share - basic and diluted (2) | $ | 0.79 | $ | 0.08 | $ | 0.16 | $ | 1.19 | |||||||||
Three months ended, | |||||||||||||||||
31-Mar | 30-Jun | 30-Sep | 31-Dec | ||||||||||||||
2013 | |||||||||||||||||
Total revenues (1) | $ | 134,284 | $ | 138,466 | $ | 143,552 | $ | 151,683 | |||||||||
Income before income tax expense | $ | 20,509 | $ | 7,949 | $ | 9,564 | $ | 22,831 | |||||||||
Income tax expense (benefit) | 6,236 | 1,737 | 2,365 | 6,996 | |||||||||||||
Net income | $ | 14,273 | $ | 6,212 | $ | 7,199 | $ | 15,835 | |||||||||
Net income per common share - basic and diluted (2) | $ | 1.1 | $ | 0.48 | $ | 0.55 | $ | 1.2 | |||||||||
-1 | Amounts include the reclassification of foreign currency exchange rate gains (losses) to other income in the consolidated financial statements. Prior to the fourth quarter of 2014, these amounts were reported as a component of other expenses. | ||||||||||||||||
-2 | Since the weighted-average number of shares outstanding for the quarters are calculated independently of the weighted-average number of shares outstanding for the year, quarterly net income per share may not total to annual net income per share. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Accounting Policies [Abstract] | ||
Percentage of premium written in Iowa and contiguous states (in hundredths) | 37.00% | |
Percentage of net premiums written subject to policyholder dividends (in hundredths) | 26.00% | |
Investment securities on deposit | $11,685 | $11,533 |
Average annual expense for accounts receivable charge-offs over past ten years | $354 |
AFFILIATION_AND_TRANSACTIONS_W1
AFFILIATION AND TRANSACTIONS WITH AFFILIATES (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Related Party Transaction [Line Items] | |||
Percentage of pool participation (in hundredths) | 30.00% | 30.00% | 30.00% |
Premiums earned ceded by the reinsurance subsidiary to Employers Mutual | $423,602 | $413,422 | $368,870 |
Property and casualty insurance [Member] | |||
Related Party Transaction [Line Items] | |||
Percentage of pool participation (in hundredths) | 30.00% | 30.00% | 30.00% |
Reinsurance [Member] | |||
Related Party Transaction [Line Items] | |||
Foreign currency transaction gain (loss) | 2,180 | -366 | -25 |
Affiliated Entity [Member] | |||
Related Party Transaction [Line Items] | |||
Premiums earned ceded by the reinsurance subsidiary to Employers Mutual | 382,997 | 373,771 | 340,143 |
Cost allocation to the Company not from pooling agreement | 3,540 | 3,588 | 3,325 |
Investment expenses allocated to Company | 1,300 | 1,568 | 1,297 |
Affiliated Entity [Member] | Property and casualty insurance [Member] | |||
Related Party Transaction [Line Items] | |||
Percentage of pool participation (in hundredths) | 30.00% | 30.00% | 30.00% |
Settlement period of intercompany balances | 45 days | 45 days | 45 days |
Premiums earned ceded by the reinsurance subsidiary to Employers Mutual | 372,658 | 361,010 | 328,227 |
Cost allocation to the Company from pooling agreement | 76,041 | 83,332 | 76,074 |
Affiliated Entity [Member] | Reinsurance [Member] | |||
Related Party Transaction [Line Items] | |||
Quota share agreement portion assumed (in hundredths) | 100.00% | 100.00% | 100.00% |
Catastrophe claims, retention amount | 4,000 | 4,000 | 4,000 |
First layer excess of loss coinsurance percentage (in hundredths) | 20.00% | 20.00% | |
First layer excess of loss limit | 10,000 | 10,000 | |
Second layer excess of loss coinsurance percentage (in hundredths) | 10.00% | 10.00% | |
Second layer excess of loss limit | 50,000 | 50,000 | |
Percentage cost of protection to assumed reinsurance premiums written (in hundredths) | 8.00% | 9.00% | 10.00% |
Settlement period of intercompany balances | 45 days | 45 days | 45 days |
Reinstatement premium income recognized through the quota share agreement | 2,256 | 2,542 | 2,344 |
Assumed Quota Share Earned Premium | 122,064 | 129,746 | 107,112 |
Premiums earned ceded by the reinsurance subsidiary to Employers Mutual | 10,339 | 12,761 | 11,916 |
Losses and settlement expenses assumed by the reinsurance subsidiary through the quota share agreement | 79,499 | 66,126 | 74,832 |
Losses and settlement expenses ceded by the reinsurance subsidiary to Employers Mutual through the excess of loss agreement | -720 | 823 | 9,926 |
Commissions paid by the reinsurance subsidiary to Employers Mutual | 25,621 | 26,114 | 19,537 |
Foreign currency transaction gain (loss) assumed by subsidiary from Employers Mutual | $1,033 | $8 | $53 |
REINSURANCE_Details
REINSURANCE (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
reinsurer | reinsurer | ||
Reinsurance Transactions For Insurance Companies, by Product Segment [Line Items] | |||
Number of significant nonaffiliated reinsurers | 3 | 4 | |
Total receivable amount from significant nonaffiliated reinsurers | $16,308 | $24,261 | |
Number Of Mandatory Nonaffiliated Reinsurers | 1 | 2 | |
Percentage of pool participation (in hundredths) | 30.00% | 30.00% | 30.00% |
Premiums written | |||
Net premiums written | 552,610 | 534,077 | 478,481 |
Premiums earned | |||
Direct | 372,658 | 361,010 | 328,227 |
Assumed | 591,666 | 567,918 | 499,489 |
Ceded | -423,602 | -413,422 | -368,870 |
Net premiums earned | 540,722 | 515,506 | 458,846 |
Losses and settlement expenses incurred | |||
Net losses and settlement expenses incurred | 385,474 | 333,287 | 303,388 |
Affiliated Entity [Member] | |||
Premiums written | |||
Assumed | 455,183 | 425,218 | 390,982 |
Ceded | -378,071 | -381,293 | -353,222 |
Premiums earned | |||
Assumed | 443,440 | 412,665 | 377,690 |
Ceded | -382,997 | -373,771 | -340,143 |
Losses and settlement expenses incurred | |||
Assumed | 305,857 | 268,491 | 238,685 |
Ceded | -226,662 | -237,932 | -201,208 |
Non Affiliated Entity [Member] | |||
Premiums written | |||
Direct | 367,732 | 368,532 | 341,306 |
Assumed | 147,519 | 165,792 | 123,959 |
Ceded | -39,753 | -44,172 | -24,544 |
Premiums earned | |||
Direct | 372,658 | 361,010 | 328,227 |
Assumed | 148,226 | 155,253 | 121,799 |
Ceded | -40,605 | -39,651 | -28,727 |
Losses and settlement expenses incurred | |||
Direct | 227,382 | 237,109 | 191,282 |
Assumed | 98,482 | 83,135 | 85,706 |
Ceded | -19,585 | -17,516 | -11,077 |
Property and casualty insurance [Member] | |||
Reinsurance Transactions For Insurance Companies, by Product Segment [Line Items] | |||
Percentage of pool participation (in hundredths) | 30.00% | 30.00% | 30.00% |
Premiums written | |||
Net premiums written | 433,707 | 405,049 | 371,235 |
Premiums earned | |||
Net premiums earned | 422,381 | 392,719 | 357,139 |
Losses and settlement expenses incurred | |||
Net losses and settlement expenses incurred | 298,033 | 260,917 | 233,892 |
Property and casualty insurance [Member] | Affiliated Entity [Member] | |||
Reinsurance Transactions For Insurance Companies, by Product Segment [Line Items] | |||
Percentage of pool participation (in hundredths) | 30.00% | 30.00% | 30.00% |
Premiums written | |||
Assumed | 455,183 | 425,218 | 390,982 |
Ceded | -367,732 | -368,532 | -341,306 |
Premiums earned | |||
Assumed | 443,440 | 412,665 | 377,690 |
Ceded | -372,658 | -361,010 | -328,227 |
Losses and settlement expenses incurred | |||
Assumed | 304,579 | 267,292 | 237,723 |
Ceded | -227,382 | -237,109 | -191,282 |
Property and casualty insurance [Member] | Non Affiliated Entity [Member] | |||
Premiums written | |||
Direct | 367,732 | 368,532 | 341,306 |
Assumed | 3,955 | 3,501 | 2,459 |
Ceded | -25,431 | -23,670 | -22,206 |
Premiums earned | |||
Direct | 372,658 | 361,010 | 328,227 |
Assumed | 3,787 | 3,275 | 2,297 |
Ceded | -24,846 | -23,221 | -22,848 |
Losses and settlement expenses incurred | |||
Direct | 227,382 | 237,109 | 191,282 |
Assumed | 2,201 | 2,281 | 1,718 |
Ceded | -8,747 | -8,656 | -5,549 |
Reinsurance [Member] | |||
Premiums written | |||
Net premiums written | 118,903 | 129,028 | 107,246 |
Premiums earned | |||
Net premiums earned | 118,341 | 122,787 | 101,707 |
Losses and settlement expenses incurred | |||
Net losses and settlement expenses incurred | 87,441 | 72,370 | 69,496 |
Reinsurance [Member] | Affiliated Entity [Member] | |||
Premiums written | |||
Assumed | 0 | 0 | 0 |
Ceded | -10,339 | -12,761 | -11,916 |
Premiums earned | |||
Assumed | 0 | 0 | 0 |
Ceded | -10,339 | -12,761 | -11,916 |
Losses and settlement expenses incurred | |||
Assumed | 1,278 | 1,199 | 962 |
Ceded | 720 | -823 | -9,926 |
Reinsurance [Member] | Non Affiliated Entity [Member] | |||
Premiums written | |||
Direct | 0 | 0 | 0 |
Assumed | 143,564 | 162,291 | 121,500 |
Ceded | -14,322 | -20,502 | -2,338 |
Premiums earned | |||
Direct | 0 | 0 | 0 |
Assumed | 144,439 | 151,978 | 119,502 |
Ceded | -15,759 | -16,430 | -5,879 |
Losses and settlement expenses incurred | |||
Direct | 0 | 0 | 0 |
Assumed | 96,281 | 80,854 | 83,988 |
Ceded | ($10,838) | ($8,860) | ($5,528) |
LIABILITY_FOR_LOSSES_AND_SETTL2
LIABILITY FOR LOSSES AND SETTLEMENT EXPENSES (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Reconciliation of beginning and ending reserves for losses and settlement expenses [Roll Forward] | |||
Gross reserves at beginning of year | $610,181 | $583,097 | $593,300 |
Less re-valuation due to foreign currency exchange rates | 333 | -2 | 0 |
Less ceded reserves at beginning of year | 30,118 | 31,390 | 36,842 |
Net reserves at beginning of year | 579,730 | 551,709 | 556,458 |
Incurred losses and settlement expenses related to: | |||
Current year | 406,266 | 346,072 | 329,121 |
Prior years | -20,792 | -12,785 | -25,733 |
Total incurred losses and settlement expenses | 385,474 | 333,287 | 303,388 |
Paid losses and settlement expenses related to: | |||
Current year | 162,905 | 137,998 | 145,103 |
Prior years | 167,182 | 167,268 | 163,034 |
Total paid losses and settlement expenses | 330,087 | 305,266 | 308,137 |
Net reserves at end of year | 635,117 | 579,730 | 551,709 |
Plus ceded reserves at end of year | 28,253 | 30,118 | 31,390 |
Plus re-valuation due to foreign currency exchange rates | -2,061 | 333 | -2 |
Gross reserves at end of year | 661,309 | 610,181 | 583,097 |
Summary of approximation of the implied favorable development and its impact on earnings [Abstract] | |||
Adjustment for (adverse) favorable development included in the reported development amount that had no impact on earnings | 2,151 | 6,526 | -4,551 |
Approximation of the implied amount of favorable development that had an impact on earnings | -18,641 | -6,259 | -30,284 |
Property and casualty insurance [Member] | |||
Incurred losses and settlement expenses related to: | |||
Prior years | -8,110 | -7,281 | -13,057 |
Percentage change in loss and settlement expense reserves for prior accident years (in hundredths) | -1.90% | -1.80% | -3.10% |
Summary of approximation of the implied favorable development and its impact on earnings [Abstract] | |||
Adjustment for (adverse) favorable development included in the reported development amount that had no impact on earnings | 2,151 | 6,526 | -4,551 |
Reinsurance [Member] | |||
Incurred losses and settlement expenses related to: | |||
Prior years | ($12,682) | ($5,504) | ($12,676) |
Percentage change in loss and settlement expense reserves for prior accident years (in hundredths) | -6.90% | -3.20% | -7.30% |
ASBESTOS_AND_ENVIRONMENTAL_CLA1
ASBESTOS AND ENVIRONMENTAL CLAIMS (Details) (USD $) | 12 Months Ended | 72 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 |
policyholder | claim | ||
claim | lawsuit | ||
lawsuit | |||
Liability for Asbestos and Environmental Claims [Abstract] | |||
Average asbestos and environmental losses paid by company per year over past five years | $1,720 | ||
Reserves for asbestos and environmental related claims, before reinsurance | 9,420 | 9,420 | 9,643 |
Reserves for asbestos and environmental related claims, net of reinsurance | 9,296 | 9,296 | 8,950 |
Number of asbestos bodily injury lawsuits | 1,849 | 1,849 | |
Number of policyholders producing recent higher paid asbestos amounts | 1 | ||
Company's share of asbestos related claims settled | $7,294 | ||
Number of asbestos exposure claims associated with furnace manufacturer, a former policyholder, remain open | 690 | 690 |
STATUTORY_INFORMATION_AND_DIVI1
STATUTORY INFORMATION AND DIVIDEND RESTRICTIONS (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
STATUTORY INFORMATION AND DIVIDEND RESTRICTIONS [Abstract] | |||
Statutory surplus of the Company's insurance subsidiaries | $454,799 | $416,718 | |
Statutory net income (loss) | 32,159 | 41,162 | 38,102 |
Risk-based capital model assessment for Company | At DecemberB 31, 2014, the Companybs insurance subsidiaries had total adjusted statutory capital well in excess of the minimum risk-based capital requirement. | ||
Statutory Accounting Practices, Statutory Capital and Surplus Required | 73,243 | ||
Percentage of statutory surplus as maximum dividend allowable without prior approval of insurance regulatory authorities (in hundredths) | 10.00% | 10.00% | 10.00% |
Amount available for distribution to the Company without prior approval | $45,480 |
SEGMENT_INFORMATION_Summarized
SEGMENT INFORMATION - Summarized financial information by segment (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Reconciliation of operating profit loss from segment to consolidated | |||||||||||
Premiums earned | $540,722 | $515,506 | $458,846 | ||||||||
Underwriting profit (loss) | -10,124 | 10,873 | 1,634 | ||||||||
Net investment income (loss) | 46,465 | 43,022 | 44,145 | ||||||||
Realized investment gains | 4,349 | 8,997 | 8,017 | ||||||||
Other income (loss) | 2,931 | 460 | 834 | ||||||||
Interest expense | 337 | 384 | 900 | ||||||||
Other expenses | 2,377 | 2,115 | 2,097 | ||||||||
Income before income tax expense | 23,865 | 1,883 | 270 | 14,889 | 22,831 | 9,564 | 7,949 | 20,509 | 40,907 | 60,853 | 51,633 |
Reconciliation of assets from segment to consolidated | |||||||||||
Assets | 1,994,576 | 1,816,966 | 1,994,576 | 1,816,966 | |||||||
Eliminations | -495,288 | -441,984 | -495,288 | -441,984 | |||||||
Reclassifications | -1,468 | -481 | -1,468 | -481 | |||||||
Total assets | 1,497,820 | 1,374,501 | 1,497,820 | 1,374,501 | |||||||
Property and casualty insurance [Member] | |||||||||||
Reconciliation of operating profit loss from segment to consolidated | |||||||||||
Premiums earned | 422,381 | 392,719 | 357,139 | ||||||||
Underwriting profit (loss) | -12,309 | -10,435 | -8,207 | ||||||||
Net investment income (loss) | 33,509 | 31,397 | 32,214 | ||||||||
Realized investment gains | 2,938 | 7,525 | 7,348 | ||||||||
Other income (loss) | 695 | 765 | 774 | ||||||||
Interest expense | 337 | 384 | 900 | ||||||||
Other expenses | 793 | 751 | 798 | ||||||||
Income before income tax expense | 23,703 | 28,117 | 30,431 | ||||||||
Reconciliation of assets from segment to consolidated | |||||||||||
Assets | 1,057,429 | 974,743 | 1,057,429 | 974,743 | |||||||
Eliminations | 0 | 0 | 0 | 0 | |||||||
Reclassifications | -909 | 0 | -909 | 0 | |||||||
Total assets | 1,056,520 | 974,743 | 1,056,520 | 974,743 | |||||||
Reinsurance [Member] | |||||||||||
Reconciliation of operating profit loss from segment to consolidated | |||||||||||
Premiums earned | 118,341 | 122,787 | 101,707 | ||||||||
Underwriting profit (loss) | 2,185 | 21,308 | 9,841 | ||||||||
Net investment income (loss) | 12,968 | 11,635 | 11,941 | ||||||||
Realized investment gains | 1,411 | 1,472 | 669 | ||||||||
Other income (loss) | 2,236 | -305 | 60 | ||||||||
Interest expense | 0 | 0 | 0 | ||||||||
Other expenses | 0 | 0 | 0 | ||||||||
Income before income tax expense | 18,800 | 34,110 | 22,511 | ||||||||
Reconciliation of assets from segment to consolidated | |||||||||||
Assets | 434,139 | 386,855 | 434,139 | 386,855 | |||||||
Eliminations | 0 | 0 | 0 | 0 | |||||||
Reclassifications | 0 | 0 | 0 | 0 | |||||||
Total assets | 434,139 | 386,855 | 434,139 | 386,855 | |||||||
Parent company [Member] | |||||||||||
Reconciliation of operating profit loss from segment to consolidated | |||||||||||
Premiums earned | 0 | 0 | 0 | ||||||||
Underwriting profit (loss) | 0 | 0 | 0 | ||||||||
Net investment income (loss) | -12 | -10 | -10 | ||||||||
Realized investment gains | 0 | 0 | 0 | ||||||||
Other income (loss) | 0 | 0 | 0 | ||||||||
Interest expense | 0 | 0 | 0 | ||||||||
Other expenses | 1,584 | 1,364 | 1,299 | ||||||||
Income before income tax expense | -1,596 | -1,374 | -1,309 | ||||||||
Reconciliation of assets from segment to consolidated | |||||||||||
Assets | 503,008 | 455,368 | 503,008 | 455,368 | |||||||
Eliminations | -495,288 | -441,984 | -495,288 | -441,984 | |||||||
Reclassifications | -559 | -481 | -559 | -481 | |||||||
Total assets | $7,161 | $12,903 | $7,161 | $12,903 |
SEGMENT_INFORMATION_Net_premiu
SEGMENT INFORMATION - Net premiums earned by segment and lines of insurance (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenue from External Customer [Line Items] | |||
Premiums earned | $540,722 | $515,506 | $458,846 |
Property and casualty insurance [Member] | |||
Revenue from External Customer [Line Items] | |||
Premiums earned | 422,381 | 392,719 | 357,139 |
Property and casualty insurance [Member] | Commercial Lines [Member] | |||
Revenue from External Customer [Line Items] | |||
Premiums earned | 375,943 | 342,318 | 306,060 |
Property and casualty insurance [Member] | Commercial Lines [Member] | Automobile Insurance L O B [Member] | |||
Revenue from External Customer [Line Items] | |||
Premiums earned | 96,908 | 86,230 | 76,362 |
Property and casualty insurance [Member] | Commercial Lines [Member] | Property Insurance L O B [Member] | |||
Revenue from External Customer [Line Items] | |||
Premiums earned | 97,155 | 87,446 | 77,726 |
Property and casualty insurance [Member] | Commercial Lines [Member] | Workers Compensation Insurance L O B [Member] | |||
Revenue from External Customer [Line Items] | |||
Premiums earned | 88,356 | 83,172 | 75,697 |
Property and casualty insurance [Member] | Commercial Lines [Member] | Liability Insurance L O B [Member] | |||
Revenue from External Customer [Line Items] | |||
Premiums earned | 86,108 | 77,983 | 68,661 |
Property and casualty insurance [Member] | Commercial Lines [Member] | Other Insurance L O B [Member] | |||
Revenue from External Customer [Line Items] | |||
Premiums earned | 7,416 | 7,487 | 7,614 |
Property and casualty insurance [Member] | Personal Lines [Member] | |||
Revenue from External Customer [Line Items] | |||
Premiums earned | 46,438 | 50,401 | 51,079 |
Property and casualty insurance [Member] | Personal Lines [Member] | Automobile Insurance L O B [Member] | |||
Revenue from External Customer [Line Items] | |||
Premiums earned | 25,094 | 27,408 | 28,437 |
Property and casualty insurance [Member] | Personal Lines [Member] | Property Insurance L O B [Member] | |||
Revenue from External Customer [Line Items] | |||
Premiums earned | 20,562 | 22,285 | 22,020 |
Property and casualty insurance [Member] | Personal Lines [Member] | Liability Insurance L O B [Member] | |||
Revenue from External Customer [Line Items] | |||
Premiums earned | 782 | 708 | 622 |
Reinsurance [Member] | |||
Revenue from External Customer [Line Items] | |||
Premiums earned | 118,341 | 122,787 | 101,707 |
Reinsurance [Member] | Pro rata reinsurance [Member] | |||
Revenue from External Customer [Line Items] | |||
Premiums earned | 41,883 | 47,648 | 30,461 |
Reinsurance [Member] | Pro rata reinsurance [Member] | Property And Liability Insurance L O B [Member] | |||
Revenue from External Customer [Line Items] | |||
Premiums earned | 8,552 | 7,489 | 6,232 |
Reinsurance [Member] | Pro rata reinsurance [Member] | Property Insurance L O B [Member] | |||
Revenue from External Customer [Line Items] | |||
Premiums earned | 4,793 | 15,775 | 13,509 |
Reinsurance [Member] | Pro rata reinsurance [Member] | Crop Insurance L O B [Member] | |||
Revenue from External Customer [Line Items] | |||
Premiums earned | 3,636 | 4,455 | 3,841 |
Reinsurance [Member] | Pro rata reinsurance [Member] | Liability Insurance L O B [Member] | |||
Revenue from External Customer [Line Items] | |||
Premiums earned | 9,919 | 5,172 | 1,171 |
Reinsurance [Member] | Pro rata reinsurance [Member] | Marine And Aviation Insurance L O B [Member] | |||
Revenue from External Customer [Line Items] | |||
Premiums earned | 14,983 | 14,757 | 5,708 |
Reinsurance [Member] | Excess of loss reinsurance [Member] | |||
Revenue from External Customer [Line Items] | |||
Premiums earned | 76,458 | 75,139 | 71,246 |
Reinsurance [Member] | Excess of loss reinsurance [Member] | Property Insurance L O B [Member] | |||
Revenue from External Customer [Line Items] | |||
Premiums earned | 64,956 | 64,069 | 59,537 |
Reinsurance [Member] | Excess of loss reinsurance [Member] | Liability Insurance L O B [Member] | |||
Revenue from External Customer [Line Items] | |||
Premiums earned | 11,408 | 11,070 | 11,698 |
Reinsurance [Member] | Excess of loss reinsurance [Member] | Fidelity And Surety Insurance L O B [Member] | |||
Revenue from External Customer [Line Items] | |||
Premiums earned | $94 | $0 | $11 |
DISCLOSURES_ABOUT_THE_FAIR_VAL2
DISCLOSURES ABOUT THE FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Assets [Abstract] | ||
Available-for-sale Securities, Fair Value Disclosure | $1,324,535 | $1,197,832 |
Short-term investments | 53,262 | 56,166 |
Liabilities [Abstract] | ||
Surplus notes | 25,000 | 25,000 |
Period for surplus notes included in assumptions | 25 years | 25 years |
Current interest rate on surplus notes | 1.35% | 1.35% |
Upward adjustment to fair value input discount rate (percent) | 0.50% | 0.50% |
Period after which rate is adjusted | 5 years | 5 years |
Debt Securities [Member] | ||
Assets [Abstract] | ||
Number Of Broker Quoted Securities | 0 | 7 |
Number of securities not priced by independent pricing service | 10 | 6 |
Available-for-sale Securities, Fair Value Disclosure | 1,127,499 | 1,027,984 |
US Treasury Securities [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Fair Value Disclosure | 9,703 | 9,412 |
US Government-sponsored Enterprises Debt Securities [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Fair Value Disclosure | 215,616 | 146,946 |
US States and Political Subdivisions Debt Securities [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Fair Value Disclosure | 326,058 | 357,052 |
Commercial Mortgage Backed Securities [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Fair Value Disclosure | 46,762 | 68,939 |
Residential Mortgage Backed Securities [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Fair Value Disclosure | 97,953 | 94,179 |
Collateralized Debt Obligations [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Fair Value Disclosure | 16,005 | 12,648 |
Corporate Debt Securities [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Fair Value Disclosure | 415,402 | 338,808 |
Equity Securities [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Fair Value Disclosure | 197,036 | 169,848 |
Common stocks Financial services [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Fair Value Disclosure | 34,379 | 28,498 |
Common stocks Information technology [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Fair Value Disclosure | 26,865 | 18,917 |
Common stocks Healthcare [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Fair Value Disclosure | 26,852 | 21,945 |
Common stocks Consumer staples [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Fair Value Disclosure | 16,694 | 13,011 |
Common stocks Consumer discretionary [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Fair Value Disclosure | 22,691 | 21,031 |
Common stocks Energy [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Fair Value Disclosure | 22,863 | 21,117 |
Common stocks Industrials [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Fair Value Disclosure | 18,221 | 17,264 |
Common stocks Other [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Fair Value Disclosure | 16,056 | 17,811 |
Nonredeemable Preferred Stock [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Fair Value Disclosure | 12,415 | 10,254 |
Estimated fair value [Member] | ||
Assets [Abstract] | ||
Short-term investments | 53,262 | 56,166 |
Liabilities [Abstract] | ||
Surplus notes | 12,308 | 10,040 |
Estimated fair value [Member] | Debt Securities [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Fair Value Disclosure | 1,127,499 | 1,027,984 |
Estimated fair value [Member] | US Treasury Securities [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Fair Value Disclosure | 9,703 | 9,412 |
Estimated fair value [Member] | US Government-sponsored Enterprises Debt Securities [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Fair Value Disclosure | 215,616 | 146,946 |
Estimated fair value [Member] | US States and Political Subdivisions Debt Securities [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Fair Value Disclosure | 326,058 | 357,052 |
Estimated fair value [Member] | Commercial Mortgage Backed Securities [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Fair Value Disclosure | 46,762 | 68,939 |
Estimated fair value [Member] | Residential Mortgage Backed Securities [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Fair Value Disclosure | 97,953 | 94,179 |
Estimated fair value [Member] | Collateralized Debt Obligations [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Fair Value Disclosure | 16,005 | 12,648 |
Estimated fair value [Member] | Corporate Debt Securities [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Fair Value Disclosure | 415,402 | 338,808 |
Estimated fair value [Member] | Equity Securities [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Fair Value Disclosure | 197,036 | 169,848 |
Estimated fair value [Member] | Common stocks Financial services [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Fair Value Disclosure | 34,379 | 28,498 |
Estimated fair value [Member] | Common stocks Information technology [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Fair Value Disclosure | 26,865 | 18,917 |
Estimated fair value [Member] | Common stocks Healthcare [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Fair Value Disclosure | 26,852 | 21,945 |
Estimated fair value [Member] | Common stocks Consumer staples [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Fair Value Disclosure | 16,694 | 13,011 |
Estimated fair value [Member] | Common stocks Consumer discretionary [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Fair Value Disclosure | 22,691 | 21,031 |
Estimated fair value [Member] | Common stocks Energy [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Fair Value Disclosure | 22,863 | 21,117 |
Estimated fair value [Member] | Common stocks Industrials [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Fair Value Disclosure | 18,221 | 17,264 |
Estimated fair value [Member] | Common stocks Other [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Fair Value Disclosure | 16,056 | 17,811 |
Estimated fair value [Member] | Nonredeemable Preferred Stock [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Fair Value Disclosure | 12,415 | 10,254 |
Carrying amount [Member] | ||
Assets [Abstract] | ||
Short-term investments | 53,262 | 56,166 |
Liabilities [Abstract] | ||
Surplus notes | 25,000 | 25,000 |
Carrying amount [Member] | Debt Securities [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Fair Value Disclosure | 1,127,499 | 1,027,984 |
Carrying amount [Member] | US Treasury Securities [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Fair Value Disclosure | 9,703 | 9,412 |
Carrying amount [Member] | US Government-sponsored Enterprises Debt Securities [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Fair Value Disclosure | 215,616 | 146,946 |
Carrying amount [Member] | US States and Political Subdivisions Debt Securities [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Fair Value Disclosure | 326,058 | 357,052 |
Carrying amount [Member] | Commercial Mortgage Backed Securities [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Fair Value Disclosure | 46,762 | 68,939 |
Carrying amount [Member] | Residential Mortgage Backed Securities [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Fair Value Disclosure | 97,953 | 94,179 |
Carrying amount [Member] | Collateralized Debt Obligations [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Fair Value Disclosure | 16,005 | 12,648 |
Carrying amount [Member] | Corporate Debt Securities [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Fair Value Disclosure | 415,402 | 338,808 |
Carrying amount [Member] | Equity Securities [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Fair Value Disclosure | 197,036 | 169,848 |
Carrying amount [Member] | Common stocks Financial services [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Fair Value Disclosure | 34,379 | 28,498 |
Carrying amount [Member] | Common stocks Information technology [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Fair Value Disclosure | 26,865 | 18,917 |
Carrying amount [Member] | Common stocks Healthcare [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Fair Value Disclosure | 26,852 | 21,945 |
Carrying amount [Member] | Common stocks Consumer staples [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Fair Value Disclosure | 16,694 | 13,011 |
Carrying amount [Member] | Common stocks Consumer discretionary [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Fair Value Disclosure | 22,691 | 21,031 |
Carrying amount [Member] | Common stocks Energy [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Fair Value Disclosure | 22,863 | 21,117 |
Carrying amount [Member] | Common stocks Industrials [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Fair Value Disclosure | 18,221 | 17,264 |
Carrying amount [Member] | Common stocks Other [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Fair Value Disclosure | 16,056 | 17,811 |
Carrying amount [Member] | Nonredeemable Preferred Stock [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Fair Value Disclosure | $12,415 | $10,254 |
DISCLOSURES_ABOUT_THE_FAIR_VAL3
DISCLOSURES ABOUT THE FAIR VALUE OF FINANCIAL INSTRUMENTS, Recurring Measurement Inputs (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Assets [Abstract] | ||
Available-for-sale Securities, Fair Value Disclosure | $1,324,535 | $1,197,832 |
Short-term investments | 53,262 | 56,166 |
Liabilities [Abstract] | ||
Surplus notes | 25,000 | 25,000 |
Debt Securities [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Fair Value Disclosure | 1,127,499 | 1,027,984 |
US Treasury Securities [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Fair Value Disclosure | 9,703 | 9,412 |
US Government-sponsored Enterprises Debt Securities [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Fair Value Disclosure | 215,616 | 146,946 |
US States and Political Subdivisions Debt Securities [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Fair Value Disclosure | 326,058 | 357,052 |
Commercial Mortgage Backed Securities [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Fair Value Disclosure | 46,762 | 68,939 |
Residential Mortgage Backed Securities [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Fair Value Disclosure | 97,953 | 94,179 |
Collateralized Debt Obligations [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Fair Value Disclosure | 16,005 | 12,648 |
Corporate Debt Securities [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Fair Value Disclosure | 415,402 | 338,808 |
Equity Securities [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Fair Value Disclosure | 197,036 | 169,848 |
Common stocks Financial services [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Fair Value Disclosure | 34,379 | 28,498 |
Common stocks Information technology [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Fair Value Disclosure | 26,865 | 18,917 |
Common stocks Healthcare [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Fair Value Disclosure | 26,852 | 21,945 |
Common stocks Consumer staples [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Fair Value Disclosure | 16,694 | 13,011 |
Common stocks Consumer discretionary [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Fair Value Disclosure | 22,691 | 21,031 |
Common stocks Energy [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Fair Value Disclosure | 22,863 | 21,117 |
Common stocks Industrials [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Fair Value Disclosure | 18,221 | 17,264 |
Common stocks Other [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Fair Value Disclosure | 16,056 | 17,811 |
Nonredeemable Preferred Stock [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Fair Value Disclosure | 12,415 | 10,254 |
Recurring [Member] | ||
Assets [Abstract] | ||
Short-term investments | 53,262 | 56,166 |
Recurring [Member] | Debt Securities [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Fair Value Disclosure | 1,127,499 | 1,027,984 |
Recurring [Member] | US Treasury Securities [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Fair Value Disclosure | 9,703 | 9,412 |
Recurring [Member] | US Government-sponsored Enterprises Debt Securities [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Fair Value Disclosure | 215,616 | 146,946 |
Recurring [Member] | US States and Political Subdivisions Debt Securities [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Fair Value Disclosure | 326,058 | 357,052 |
Recurring [Member] | Commercial Mortgage Backed Securities [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Fair Value Disclosure | 46,762 | 68,939 |
Recurring [Member] | Residential Mortgage Backed Securities [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Fair Value Disclosure | 97,953 | 94,179 |
Recurring [Member] | Collateralized Debt Obligations [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Fair Value Disclosure | 16,005 | 12,648 |
Recurring [Member] | Corporate Debt Securities [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Fair Value Disclosure | 415,402 | 338,808 |
Recurring [Member] | Equity Securities [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Fair Value Disclosure | 197,036 | 169,848 |
Recurring [Member] | Common stocks Financial services [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Fair Value Disclosure | 34,379 | 28,498 |
Recurring [Member] | Common stocks Information technology [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Fair Value Disclosure | 26,865 | 18,917 |
Recurring [Member] | Common stocks Healthcare [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Fair Value Disclosure | 26,852 | 21,945 |
Recurring [Member] | Common stocks Consumer staples [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Fair Value Disclosure | 16,694 | 13,011 |
Recurring [Member] | Common stocks Consumer discretionary [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Fair Value Disclosure | 22,691 | 21,031 |
Recurring [Member] | Common stocks Energy [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Fair Value Disclosure | 22,863 | 21,117 |
Recurring [Member] | Common stocks Industrials [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Fair Value Disclosure | 18,221 | 17,264 |
Recurring [Member] | Common stocks Other [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Fair Value Disclosure | 16,056 | 17,811 |
Recurring [Member] | Nonredeemable Preferred Stock [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Fair Value Disclosure | 12,415 | 10,254 |
Recurring [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | ||
Assets [Abstract] | ||
Short-term investments | 53,262 | 56,166 |
Recurring [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | Debt Securities [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Fair Value Disclosure | 0 | 0 |
Recurring [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | US Treasury Securities [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Fair Value Disclosure | 0 | 0 |
Recurring [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | US Government-sponsored Enterprises Debt Securities [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Fair Value Disclosure | 0 | 0 |
Recurring [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | US States and Political Subdivisions Debt Securities [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Fair Value Disclosure | 0 | 0 |
Recurring [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | Commercial Mortgage Backed Securities [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Fair Value Disclosure | 0 | 0 |
Recurring [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | Residential Mortgage Backed Securities [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Fair Value Disclosure | 0 | 0 |
Recurring [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | Collateralized Debt Obligations [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Fair Value Disclosure | 0 | 0 |
Recurring [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | Corporate Debt Securities [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Fair Value Disclosure | 0 | 0 |
Recurring [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | Equity Securities [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Fair Value Disclosure | 192,363 | 165,386 |
Recurring [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | Common stocks Financial services [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Fair Value Disclosure | 34,376 | 28,495 |
Recurring [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | Common stocks Information technology [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Fair Value Disclosure | 26,865 | 18,917 |
Recurring [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | Common stocks Healthcare [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Fair Value Disclosure | 26,852 | 21,945 |
Recurring [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | Common stocks Consumer staples [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Fair Value Disclosure | 16,694 | 13,011 |
Recurring [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | Common stocks Consumer discretionary [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Fair Value Disclosure | 22,691 | 21,031 |
Recurring [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | Common stocks Energy [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Fair Value Disclosure | 22,863 | 21,117 |
Recurring [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | Common stocks Industrials [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Fair Value Disclosure | 18,221 | 17,264 |
Recurring [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | Common stocks Other [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Fair Value Disclosure | 16,056 | 17,811 |
Recurring [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | Nonredeemable Preferred Stock [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Fair Value Disclosure | 7,745 | 5,795 |
Recurring [Member] | Significant other observable inputs (Level 2) [Member] | ||
Assets [Abstract] | ||
Short-term investments | 0 | 0 |
Recurring [Member] | Significant other observable inputs (Level 2) [Member] | Debt Securities [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Fair Value Disclosure | 1,125,837 | 1,026,008 |
Recurring [Member] | Significant other observable inputs (Level 2) [Member] | US Treasury Securities [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Fair Value Disclosure | 9,703 | 9,412 |
Recurring [Member] | Significant other observable inputs (Level 2) [Member] | US Government-sponsored Enterprises Debt Securities [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Fair Value Disclosure | 215,616 | 146,946 |
Recurring [Member] | Significant other observable inputs (Level 2) [Member] | US States and Political Subdivisions Debt Securities [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Fair Value Disclosure | 326,058 | 357,052 |
Recurring [Member] | Significant other observable inputs (Level 2) [Member] | Commercial Mortgage Backed Securities [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Fair Value Disclosure | 46,762 | 68,939 |
Recurring [Member] | Significant other observable inputs (Level 2) [Member] | Residential Mortgage Backed Securities [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Fair Value Disclosure | 97,953 | 94,179 |
Recurring [Member] | Significant other observable inputs (Level 2) [Member] | Collateralized Debt Obligations [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Fair Value Disclosure | 16,005 | 12,648 |
Recurring [Member] | Significant other observable inputs (Level 2) [Member] | Corporate Debt Securities [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Fair Value Disclosure | 413,740 | 336,832 |
Recurring [Member] | Significant other observable inputs (Level 2) [Member] | Equity Securities [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Fair Value Disclosure | 4,670 | 4,459 |
Recurring [Member] | Significant other observable inputs (Level 2) [Member] | Common stocks Financial services [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Fair Value Disclosure | 0 | 0 |
Recurring [Member] | Significant other observable inputs (Level 2) [Member] | Common stocks Information technology [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Fair Value Disclosure | 0 | 0 |
Recurring [Member] | Significant other observable inputs (Level 2) [Member] | Common stocks Healthcare [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Fair Value Disclosure | 0 | 0 |
Recurring [Member] | Significant other observable inputs (Level 2) [Member] | Common stocks Consumer staples [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Fair Value Disclosure | 0 | 0 |
Recurring [Member] | Significant other observable inputs (Level 2) [Member] | Common stocks Consumer discretionary [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Fair Value Disclosure | 0 | 0 |
Recurring [Member] | Significant other observable inputs (Level 2) [Member] | Common stocks Energy [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Fair Value Disclosure | 0 | 0 |
Recurring [Member] | Significant other observable inputs (Level 2) [Member] | Common stocks Industrials [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Fair Value Disclosure | 0 | 0 |
Recurring [Member] | Significant other observable inputs (Level 2) [Member] | Common stocks Other [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Fair Value Disclosure | 0 | 0 |
Recurring [Member] | Significant other observable inputs (Level 2) [Member] | Nonredeemable Preferred Stock [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Fair Value Disclosure | 4,670 | 4,459 |
Recurring [Member] | Significant unobservable inputs (Level 3) [Member] | ||
Assets [Abstract] | ||
Short-term investments | 0 | 0 |
Recurring [Member] | Significant unobservable inputs (Level 3) [Member] | Debt Securities [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Fair Value Disclosure | 1,662 | 1,976 |
Number of securities categorized as Level 3 fair value measurements | 2 | 2 |
Recurring [Member] | Significant unobservable inputs (Level 3) [Member] | US Treasury Securities [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Fair Value Disclosure | 0 | 0 |
Recurring [Member] | Significant unobservable inputs (Level 3) [Member] | US Government-sponsored Enterprises Debt Securities [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Fair Value Disclosure | 0 | 0 |
Recurring [Member] | Significant unobservable inputs (Level 3) [Member] | US States and Political Subdivisions Debt Securities [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Fair Value Disclosure | 0 | 0 |
Recurring [Member] | Significant unobservable inputs (Level 3) [Member] | Commercial Mortgage Backed Securities [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Fair Value Disclosure | 0 | 0 |
Recurring [Member] | Significant unobservable inputs (Level 3) [Member] | Residential Mortgage Backed Securities [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Fair Value Disclosure | 0 | 0 |
Recurring [Member] | Significant unobservable inputs (Level 3) [Member] | Collateralized Debt Obligations [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Fair Value Disclosure | 0 | 0 |
Recurring [Member] | Significant unobservable inputs (Level 3) [Member] | Corporate Debt Securities [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Fair Value Disclosure | 1,662 | 1,976 |
Recurring [Member] | Significant unobservable inputs (Level 3) [Member] | Equity Securities [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Fair Value Disclosure | 3 | 3 |
Number of securities categorized as Level 3 fair value measurements | 1 | 1 |
Recurring [Member] | Significant unobservable inputs (Level 3) [Member] | Common stocks Financial services [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Fair Value Disclosure | 3 | 3 |
Recurring [Member] | Significant unobservable inputs (Level 3) [Member] | Common stocks Information technology [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Fair Value Disclosure | 0 | 0 |
Recurring [Member] | Significant unobservable inputs (Level 3) [Member] | Common stocks Healthcare [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Fair Value Disclosure | 0 | 0 |
Recurring [Member] | Significant unobservable inputs (Level 3) [Member] | Common stocks Consumer staples [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Fair Value Disclosure | 0 | 0 |
Recurring [Member] | Significant unobservable inputs (Level 3) [Member] | Common stocks Consumer discretionary [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Fair Value Disclosure | 0 | 0 |
Recurring [Member] | Significant unobservable inputs (Level 3) [Member] | Common stocks Energy [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Fair Value Disclosure | 0 | 0 |
Recurring [Member] | Significant unobservable inputs (Level 3) [Member] | Common stocks Industrials [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Fair Value Disclosure | 0 | 0 |
Recurring [Member] | Significant unobservable inputs (Level 3) [Member] | Common stocks Other [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Fair Value Disclosure | 0 | 0 |
Recurring [Member] | Significant unobservable inputs (Level 3) [Member] | Nonredeemable Preferred Stock [Member] | ||
Assets [Abstract] | ||
Available-for-sale Securities, Fair Value Disclosure | 0 | 0 |
Not Reported At Fair Value [Member] | ||
Liabilities [Abstract] | ||
Surplus notes | 12,308 | 10,040 |
Not Reported At Fair Value [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | ||
Liabilities [Abstract] | ||
Surplus notes | 0 | 0 |
Not Reported At Fair Value [Member] | Significant other observable inputs (Level 2) [Member] | ||
Liabilities [Abstract] | ||
Surplus notes | 0 | 0 |
Not Reported At Fair Value [Member] | Significant unobservable inputs (Level 3) [Member] | ||
Liabilities [Abstract] | ||
Surplus notes | $12,308 | $10,040 |
DISCLOSURES_ABOUT_THE_FAIR_VAL4
DISCLOSURES ABOUT THE FAIR VALUE OF FINANCIAL INSTRUMENTS, Unobservable Input Reconciliation (Details) (Recurring [Member], USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Reconciliation of assets measured at fair value on recurring basis using significant unobservable inputs [Roll Forward] | ||
Beginning balance | $1,979 | $2 |
Purchases | 1,972 | |
Settlements | -322 | -1 |
Unrealized gains included in other comprehensive income (loss) | 8 | 6 |
Balance at end of period | 1,665 | 1,979 |
Corporate Debt Securities [Member] | ||
Reconciliation of assets measured at fair value on recurring basis using significant unobservable inputs [Roll Forward] | ||
Beginning balance | 1,976 | 0 |
Purchases | 1,972 | |
Settlements | -322 | -1 |
Unrealized gains included in other comprehensive income (loss) | 8 | 5 |
Balance at end of period | 1,662 | 1,976 |
Common stocks Financial services [Member] | ||
Reconciliation of assets measured at fair value on recurring basis using significant unobservable inputs [Roll Forward] | ||
Beginning balance | 3 | 2 |
Purchases | 0 | |
Settlements | 0 | 0 |
Unrealized gains included in other comprehensive income (loss) | 0 | 1 |
Balance at end of period | $3 | $3 |
INVESTMENTS_Details
INVESTMENTS (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Amortized cost and estimated fair value of available-for-sale securities [Abstract] | |||
Amortized cost | $1,203,978 | $1,123,407 | |
Gross unrealized gains | 128,038 | 98,434 | |
Gross unrealized losses | 7,481 | 24,009 | |
Estimated fair value | 1,324,535 | 1,197,832 | |
Available for sale securities continuous unrealized loss position [Abstract] | |||
Less than twelve months, Fair value | 74,394 | 318,108 | |
Less than twelve months, Unrealized losses | 2,142 | 18,717 | |
Twelve months or longer, Fair value | 152,526 | 43,692 | |
Twelve months or longer, Unrealized losses | 5,339 | 5,292 | |
Total, Fair value | 226,920 | 361,800 | |
Total, Unrealized losses | 7,481 | 24,009 | |
Amortized cost | |||
Due in one year or less | 33,469 | ||
Due after one year through five years | 194,140 | ||
Due after five years through ten years | 223,145 | ||
Due after ten years | 485,960 | ||
Mortgage-backed securities | 143,292 | ||
Totals | 1,080,006 | 1,009,572 | |
Estimated fair value | |||
Due in one year or less | 33,945 | ||
Due after one year through five years | 204,973 | ||
Due after five years through ten years | 229,778 | ||
Due after ten years | 514,088 | ||
Mortgage-backed securities | 144,715 | ||
Totals | 1,127,499 | 1,027,984 | |
Realized Investment Gains (Losses) [Abstract] | |||
'Other-than-temporary' impairments | -878 | -63 | -186 |
Net realized investment gains (losses) | 4,349 | 8,997 | 8,017 |
Investment Income, Net [Abstract] | |||
Interest on fixed maturity securities | 41,932 | 40,062 | 41,699 |
Dividends on equity securities | 6,007 | 4,619 | 3,852 |
Interest on short-term investments | 0 | 27 | 129 |
Return on long-term investments | 297 | 22 | 12 |
Total investment income | 48,236 | 44,730 | 45,692 |
Securities litigation income | 107 | 219 | 58 |
Investment expenses | -1,878 | -1,927 | -1,605 |
Net investment income (loss) | 46,465 | 43,022 | 44,145 |
Available-for-sale Securities, Change in Net Unrealized Holding Gain (Loss), Net of Tax [Abstract] | |||
Deferred income tax expense (benefit) | 16,146 | -11,539 | 10,043 |
Net changes in unrealized holding gains (losses) net of tax | 29,986 | -21,430 | 18,652 |
Debt Securities [Member] | |||
Amortized cost and estimated fair value of available-for-sale securities [Abstract] | |||
Amortized cost | 1,080,006 | 1,009,572 | |
Gross unrealized gains | 54,148 | 41,236 | |
Gross unrealized losses | 6,655 | 22,824 | |
Estimated fair value | 1,127,499 | 1,027,984 | |
Available for sale securities continuous unrealized loss position [Abstract] | |||
Less than twelve months, Fair value | 65,655 | 308,972 | |
Less than twelve months, Unrealized losses | 1,633 | 18,048 | |
Twelve months or longer, Fair value | 150,623 | 42,208 | |
Twelve months or longer, Unrealized losses | 5,022 | 4,776 | |
Total, Fair value | 216,278 | 351,180 | |
Total, Unrealized losses | 6,655 | 22,824 | |
Realized Investment Gains (Losses) [Abstract] | |||
Available-for-sale, Gross realized investment gains | 979 | 1,226 | 795 |
Available-for-sale, Gross realized investment losses | -92 | -725 | -10 |
'Other-than-temporary' impairments | -1 | 0 | 0 |
Available-for-sale Securities, Change in Net Unrealized Holding Gain (Loss), Net of Tax [Abstract] | |||
Net changes in unrealized holding gains (losses) before tax | 29,081 | -60,540 | 20,687 |
Deferred income tax expense (benefit) | 10,179 | -21,189 | 7,240 |
Net changes in unrealized holding gains (losses) net of tax | 18,902 | -39,351 | 13,447 |
US Treasury Securities [Member] | |||
Amortized cost and estimated fair value of available-for-sale securities [Abstract] | |||
Amortized cost | 9,574 | 9,540 | |
Gross unrealized gains | 129 | 191 | |
Gross unrealized losses | 0 | 319 | |
Estimated fair value | 9,703 | 9,412 | |
Available for sale securities continuous unrealized loss position [Abstract] | |||
Less than twelve months, Fair value | 4,507 | ||
Less than twelve months, Unrealized losses | 319 | ||
Twelve months or longer, Fair value | 0 | ||
Twelve months or longer, Unrealized losses | 0 | ||
Total, Fair value | 4,507 | ||
Total, Unrealized losses | 319 | ||
US Government-sponsored Enterprises Debt Securities [Member] | |||
Amortized cost and estimated fair value of available-for-sale securities [Abstract] | |||
Amortized cost | 215,425 | 156,981 | |
Gross unrealized gains | 2,313 | 1,356 | |
Gross unrealized losses | 2,122 | 11,391 | |
Estimated fair value | 215,616 | 146,946 | |
Available for sale securities continuous unrealized loss position [Abstract] | |||
Less than twelve months, Fair value | 24,473 | 93,856 | |
Less than twelve months, Unrealized losses | 94 | 8,120 | |
Twelve months or longer, Fair value | 97,446 | 24,053 | |
Twelve months or longer, Unrealized losses | 2,028 | 3,271 | |
Total, Fair value | 121,919 | 117,909 | |
Total, Unrealized losses | 2,122 | 11,391 | |
US States and Political Subdivisions Debt Securities [Member] | |||
Amortized cost and estimated fair value of available-for-sale securities [Abstract] | |||
Amortized cost | 299,258 | 346,554 | |
Gross unrealized gains | 26,840 | 15,040 | |
Gross unrealized losses | 40 | 4,542 | |
Estimated fair value | 326,058 | 357,052 | |
Available for sale securities continuous unrealized loss position [Abstract] | |||
Less than twelve months, Fair value | 0 | 74,523 | |
Less than twelve months, Unrealized losses | 0 | 4,335 | |
Twelve months or longer, Fair value | 3,757 | 3,008 | |
Twelve months or longer, Unrealized losses | 40 | 207 | |
Total, Fair value | 3,757 | 77,531 | |
Total, Unrealized losses | 40 | 4,542 | |
Commercial Mortgage Backed Securities [Member] | |||
Amortized cost and estimated fair value of available-for-sale securities [Abstract] | |||
Amortized cost | 42,996 | 63,185 | |
Gross unrealized gains | 3,766 | 5,842 | |
Gross unrealized losses | 0 | 88 | |
Estimated fair value | 46,762 | 68,939 | |
Available for sale securities continuous unrealized loss position [Abstract] | |||
Less than twelve months, Fair value | 1,102 | 10,551 | |
Less than twelve months, Unrealized losses | 0 | 88 | |
Twelve months or longer, Fair value | 0 | 0 | |
Twelve months or longer, Unrealized losses | 0 | 0 | |
Total, Fair value | 1,102 | 10,551 | |
Total, Unrealized losses | 0 | 88 | |
Residential Mortgage Backed Securities [Member] | |||
Amortized cost and estimated fair value of available-for-sale securities [Abstract] | |||
Amortized cost | 100,296 | 96,058 | |
Gross unrealized gains | 1,402 | 1,073 | |
Gross unrealized losses | 3,745 | 2,952 | |
Estimated fair value | 97,953 | 94,179 | |
Available for sale securities continuous unrealized loss position [Abstract] | |||
Less than twelve months, Fair value | 21,451 | 44,243 | |
Less than twelve months, Unrealized losses | 1,252 | 2,482 | |
Twelve months or longer, Fair value | 21,163 | 4,600 | |
Twelve months or longer, Unrealized losses | 2,493 | 470 | |
Total, Fair value | 42,614 | 48,843 | |
Total, Unrealized losses | 3,745 | 2,952 | |
Collateralized Debt Obligations [Member] | |||
Amortized cost and estimated fair value of available-for-sale securities [Abstract] | |||
Amortized cost | 14,798 | 11,456 | |
Gross unrealized gains | 1,213 | 1,192 | |
Gross unrealized losses | 6 | 0 | |
Estimated fair value | 16,005 | 12,648 | |
Available for sale securities continuous unrealized loss position [Abstract] | |||
Less than twelve months, Fair value | 1,889 | ||
Less than twelve months, Unrealized losses | 6 | ||
Twelve months or longer, Fair value | 0 | ||
Twelve months or longer, Unrealized losses | 0 | ||
Total, Fair value | 1,889 | ||
Total, Unrealized losses | 6 | ||
Corporate Debt Securities [Member] | |||
Amortized cost and estimated fair value of available-for-sale securities [Abstract] | |||
Amortized cost | 397,659 | 325,798 | |
Gross unrealized gains | 18,485 | 16,542 | |
Gross unrealized losses | 742 | 3,532 | |
Estimated fair value | 415,402 | 338,808 | |
Available for sale securities continuous unrealized loss position [Abstract] | |||
Less than twelve months, Fair value | 16,740 | 81,292 | |
Less than twelve months, Unrealized losses | 281 | 2,704 | |
Twelve months or longer, Fair value | 28,257 | 10,547 | |
Twelve months or longer, Unrealized losses | 461 | 828 | |
Total, Fair value | 44,997 | 91,839 | |
Total, Unrealized losses | 742 | 3,532 | |
Equity Securities [Member] | |||
Amortized cost and estimated fair value of available-for-sale securities [Abstract] | |||
Amortized cost | 123,972 | 113,835 | |
Gross unrealized gains | 73,890 | 57,198 | |
Gross unrealized losses | 826 | 1,185 | |
Estimated fair value | 197,036 | 169,848 | |
Available for sale securities continuous unrealized loss position [Abstract] | |||
Less than twelve months, Fair value | 8,739 | 9,136 | |
Less than twelve months, Unrealized losses | 509 | 669 | |
Twelve months or longer, Fair value | 1,903 | 1,484 | |
Twelve months or longer, Unrealized losses | 317 | 516 | |
Total, Fair value | 10,642 | 10,620 | |
Total, Unrealized losses | 826 | 1,185 | |
Realized Investment Gains (Losses) [Abstract] | |||
Available-for-sale, Gross realized investment gains | 8,913 | 9,458 | 9,984 |
Available-for-sale, Gross realized investment losses | -1,727 | -899 | -2,566 |
'Other-than-temporary' impairments | -877 | -63 | -186 |
Available-for-sale Securities, Change in Net Unrealized Holding Gain (Loss), Net of Tax [Abstract] | |||
Net changes in unrealized holding gains (losses) before tax | 17,051 | 27,571 | 8,008 |
Deferred income tax expense (benefit) | 5,967 | 9,650 | 2,803 |
Net changes in unrealized holding gains (losses) net of tax | 11,084 | 17,921 | 5,205 |
Common stocks Financial services [Member] | |||
Amortized cost and estimated fair value of available-for-sale securities [Abstract] | |||
Amortized cost | 22,586 | 19,273 | |
Gross unrealized gains | 11,835 | 9,374 | |
Gross unrealized losses | 42 | 149 | |
Estimated fair value | 34,379 | 28,498 | |
Available for sale securities continuous unrealized loss position [Abstract] | |||
Less than twelve months, Fair value | 1,162 | 2,801 | |
Less than twelve months, Unrealized losses | 9 | 149 | |
Twelve months or longer, Fair value | 187 | 0 | |
Twelve months or longer, Unrealized losses | 33 | 0 | |
Total, Fair value | 1,349 | 2,801 | |
Total, Unrealized losses | 42 | 149 | |
Common stocks Information technology [Member] | |||
Amortized cost and estimated fair value of available-for-sale securities [Abstract] | |||
Amortized cost | 15,755 | 12,645 | |
Gross unrealized gains | 11,110 | 6,301 | |
Gross unrealized losses | 0 | 29 | |
Estimated fair value | 26,865 | 18,917 | |
Available for sale securities continuous unrealized loss position [Abstract] | |||
Less than twelve months, Fair value | 610 | ||
Less than twelve months, Unrealized losses | 29 | ||
Twelve months or longer, Fair value | 0 | ||
Twelve months or longer, Unrealized losses | 0 | ||
Total, Fair value | 610 | ||
Total, Unrealized losses | 29 | ||
Common stocks Healthcare [Member] | |||
Amortized cost and estimated fair value of available-for-sale securities [Abstract] | |||
Amortized cost | 14,673 | 12,801 | |
Gross unrealized gains | 12,179 | 9,144 | |
Gross unrealized losses | 0 | 0 | |
Estimated fair value | 26,852 | 21,945 | |
Common stocks Consumer staples [Member] | |||
Amortized cost and estimated fair value of available-for-sale securities [Abstract] | |||
Amortized cost | 10,584 | 9,162 | |
Gross unrealized gains | 6,112 | 3,849 | |
Gross unrealized losses | 2 | 0 | |
Estimated fair value | 16,694 | 13,011 | |
Available for sale securities continuous unrealized loss position [Abstract] | |||
Less than twelve months, Fair value | 1,051 | 30 | |
Less than twelve months, Unrealized losses | 2 | 0 | |
Twelve months or longer, Fair value | 0 | 0 | |
Twelve months or longer, Unrealized losses | 0 | 0 | |
Total, Fair value | 1,051 | 30 | |
Total, Unrealized losses | 2 | 0 | |
Common stocks Consumer discretionary [Member] | |||
Amortized cost and estimated fair value of available-for-sale securities [Abstract] | |||
Amortized cost | 11,304 | 10,722 | |
Gross unrealized gains | 11,420 | 10,309 | |
Gross unrealized losses | 33 | 0 | |
Estimated fair value | 22,691 | 21,031 | |
Available for sale securities continuous unrealized loss position [Abstract] | |||
Less than twelve months, Fair value | 822 | ||
Less than twelve months, Unrealized losses | 33 | ||
Twelve months or longer, Fair value | 0 | ||
Twelve months or longer, Unrealized losses | 0 | ||
Total, Fair value | 822 | ||
Total, Unrealized losses | 33 | ||
Common stocks Energy [Member] | |||
Amortized cost and estimated fair value of available-for-sale securities [Abstract] | |||
Amortized cost | 15,837 | 14,102 | |
Gross unrealized gains | 7,458 | 7,341 | |
Gross unrealized losses | 432 | 326 | |
Estimated fair value | 22,863 | 21,117 | |
Available for sale securities continuous unrealized loss position [Abstract] | |||
Less than twelve months, Fair value | 4,298 | 1,450 | |
Less than twelve months, Unrealized losses | 432 | 326 | |
Twelve months or longer, Fair value | 0 | 0 | |
Twelve months or longer, Unrealized losses | 0 | 0 | |
Total, Fair value | 4,298 | 1,450 | |
Total, Unrealized losses | 432 | 326 | |
Common stocks Industrials [Member] | |||
Amortized cost and estimated fair value of available-for-sale securities [Abstract] | |||
Amortized cost | 9,658 | 11,190 | |
Gross unrealized gains | 8,596 | 6,075 | |
Gross unrealized losses | 33 | 1 | |
Estimated fair value | 18,221 | 17,264 | |
Available for sale securities continuous unrealized loss position [Abstract] | |||
Less than twelve months, Fair value | 1,406 | 625 | |
Less than twelve months, Unrealized losses | 33 | 1 | |
Twelve months or longer, Fair value | 0 | 0 | |
Twelve months or longer, Unrealized losses | 0 | 0 | |
Total, Fair value | 1,406 | 625 | |
Total, Unrealized losses | 33 | 1 | |
Common stocks Other [Member] | |||
Amortized cost and estimated fair value of available-for-sale securities [Abstract] | |||
Amortized cost | 11,493 | 13,358 | |
Gross unrealized gains | 4,563 | 4,489 | |
Gross unrealized losses | 0 | 36 | |
Estimated fair value | 16,056 | 17,811 | |
Available for sale securities continuous unrealized loss position [Abstract] | |||
Less than twelve months, Fair value | 1,499 | ||
Less than twelve months, Unrealized losses | 36 | ||
Twelve months or longer, Fair value | 0 | ||
Twelve months or longer, Unrealized losses | 0 | ||
Total, Fair value | 1,499 | ||
Total, Unrealized losses | 36 | ||
Nonredeemable Preferred Stock [Member] | |||
Amortized cost and estimated fair value of available-for-sale securities [Abstract] | |||
Amortized cost | 12,082 | 10,582 | |
Gross unrealized gains | 617 | 316 | |
Gross unrealized losses | 284 | 644 | |
Estimated fair value | 12,415 | 10,254 | |
Available for sale securities continuous unrealized loss position [Abstract] | |||
Less than twelve months, Fair value | 0 | 2,121 | |
Less than twelve months, Unrealized losses | 0 | 128 | |
Twelve months or longer, Fair value | 1,716 | 1,484 | |
Twelve months or longer, Unrealized losses | 284 | 516 | |
Total, Fair value | 1,716 | 3,605 | |
Total, Unrealized losses | 284 | 644 | |
Other Long-term Investments [Member] | |||
Realized Investment Gains (Losses) [Abstract] | |||
Other long-term investments, Gross realized investment losses | ($2,846) | $0 | $0 |
INCOME_TAXES_Details
INCOME TAXES (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Components of Deferred Tax Assets [Abstract] | |||||||||||
Loss reserve discounting | $15,681 | $17,690 | $15,681 | $17,690 | |||||||
Unearned premium reserve limitation | 15,648 | 14,764 | 15,648 | 14,764 | |||||||
Other policyholders' funds payable | 3,553 | 2,972 | 3,553 | 2,972 | |||||||
Other, net | 1,145 | 1,761 | 1,145 | 1,761 | |||||||
Total deferred income tax asset | 36,027 | 37,187 | 36,027 | 37,187 | |||||||
Net unrealized holding gains on investment securities | -42,195 | -26,049 | -42,195 | -26,049 | |||||||
Deferred policy acquisition costs | -13,770 | -13,227 | -13,770 | -13,227 | |||||||
Retirement benefits | -5,712 | -8,234 | -5,712 | -8,234 | |||||||
Other, net | -3,004 | -2,499 | -3,004 | -2,499 | |||||||
Total deferred income tax liability | -64,681 | -50,009 | -64,681 | -50,009 | |||||||
Net deferred income tax liability | -28,654 | -12,822 | -28,654 | -12,822 | |||||||
Income tax expense (benefit) reconciliation [Abstract] | |||||||||||
United States federal corporate tax rate (in hundredths) | 35.00% | 35.00% | 35.00% | ||||||||
Computed expected income tax expense | 14,318 | 21,298 | 18,072 | ||||||||
Increases (decreases) in tax resulting from: | |||||||||||
Tax-exempt interest income | -3,285 | -3,828 | -4,433 | ||||||||
Dividends received deduction | -828 | -876 | -723 | ||||||||
Proration of tax-exempt interest and dividends received deduction | 617 | 706 | 773 | ||||||||
Other, net | 93 | 34 | -22 | ||||||||
Total income tax expense | 7,711 | -346 | -744 | 4,294 | 6,996 | 2,365 | 1,737 | 6,236 | 10,915 | 17,334 | 13,667 |
Comprehensive Income Loss Tax [Abstract] | |||||||||||
Operations | 7,711 | -346 | -744 | 4,294 | 6,996 | 2,365 | 1,737 | 6,236 | 10,915 | 17,334 | 13,667 |
Change in unrealized holding gains on investment securities | 16,146 | -11,539 | 10,043 | ||||||||
Change in funded status of retirement benefit plans: | |||||||||||
Pension plans | -2,619 | 5,498 | 598 | ||||||||
Postretirement benefit plans | -1,330 | 12,103 | 350 | ||||||||
Comprehensive income tax expense | 23,112 | 23,396 | 24,658 | ||||||||
Provision for uncertain tax positions | 0 | 0 | 0 | 0 | |||||||
Interest income related to US federal income taxes | 1 | 0 | 3 | ||||||||
Income Tax Examination, Penalties and Interest Expense | $0 | $0 | $0 |
SURPLUS_NOTES_Details
SURPLUS NOTES (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
SURPLUS NOTES [Abstract] | |||
Surplus notes payable to affiliate | $25,000 | $25,000 | |
Interest rate on surplus notes (in hundredths) | 1.35% | 1.35% | 3.60% |
Period for review of interest rate | 5 years 0 months 0 days | 5 years 0 months 0 days | 5 years 0 months 0 days |
Interest expense (all affiliated) | $337 | $384 | $900 |
EMPLOYEE_RETIREMENT_PLANS_Deta
EMPLOYEE RETIREMENT PLANS (Details) (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Defined Benefit Plan Disclosure [Line Items] | |||
Percentage of pool participation (in hundredths) | 30.00% | 30.00% | 30.00% |
Other benefit plans expenses (including 401(k)) allocated to the Company | $1,688 | $1,457 | $1,823 |
Pension Plans [Member] | EMC Insurance Group, Inc. [Member] | |||
Assets [Abstract] | |||
Prepaid pension and postretirement benefits | 13,267 | 18,310 | |
Liability [Abstract] | |||
Pension and postretirement benefits | -4,162 | -3,401 | |
Net amount recognized | 9,105 | 14,909 | |
Amounts recognized in the Company's consolidated balance sheets under the caption "accumulated other comprehensive income", before deferred income taxes [Abstract] | |||
Net actuarial loss | -15,097 | -7,606 | |
Prior service (cost) credit | -25 | -34 | |
Net amount recognized | -15,122 | -7,640 | |
Amounts that will be amortized from accumulated other comprehensive income (loss) in next fiscal year [Abstract] | |||
Amortization of net actuarial loss | 641 | ||
Amortization of prior service cost (credit) | -10 | ||
Amounts recognized in the Company's consolidated statements of comprehensive income [Abstract] | |||
Net actuarial gain (loss) | -7,492 | 15,694 | |
Prior service (cost) credit | 10 | 15 | |
Net amount recognized | -7,482 | 15,709 | |
Components of net periodic benefit cost [Abstract] | |||
Net periodic benefit cost | 680 | 3,013 | 4,115 |
Pension Plans [Member] | EMC Insurance Companies [Member] | |||
Change in projected benefit obligation [Abstract] | |||
Benefit obligation at beginning of year | 239,109 | 247,290 | |
Service cost | 12,863 | 13,213 | 12,386 |
Interest cost | 9,664 | 7,656 | 8,819 |
Actuarial (gain) loss | 19,257 | -14,459 | |
Benefits paid | -13,764 | -14,591 | |
Medicare subsidy reimbursements | 0 | 0 | |
Plan amendments | 0 | 0 | |
Projected benefit obligation at end of year | 267,129 | 239,109 | 247,290 |
Change in plan assets [Abstract] | |||
Fair value of plan assets at beginning of year | 288,750 | 240,034 | |
Actual return on plan assets | 15,029 | 48,623 | |
Employer contributions | 7,833 | 14,684 | |
Benefits paid | -13,764 | -14,591 | |
Fair value of plan assets at end of year | 297,848 | 288,750 | 240,034 |
Funded status | 30,719 | 49,641 | |
Components of net periodic benefit cost [Abstract] | |||
Service cost | 12,863 | 13,213 | 12,386 |
Interest cost | 9,664 | 7,656 | 8,819 |
Expected return on plan assets | -20,733 | -17,150 | -14,926 |
Amortization of net actuarial loss | 366 | 5,962 | 6,809 |
Amortization of prior service cost (credit) | 31 | 50 | 291 |
Net periodic benefit cost | 2,191 | 9,731 | 13,379 |
Weighted-average assumptions used to measure the benefit obligations [Abstract] | |||
Discount rate (in hundredths) | 3.57% | 4.17% | |
Weighted-average assumptions used to measure the net periodic benefit costs [Abstract] | |||
Discount rate (in hundredths) | 4.17% | 3.24% | 4.13% |
Expected long-term rate of return on plan assets (in hundredths) | 7.25% | 7.25% | 7.25% |
Expected future benefit payments to be paid from the plans over the next ten years [Abstract] | |||
2015 | 23,982 | ||
2016 | 21,655 | ||
2017 | 21,601 | ||
2018 | 22,418 | ||
2019 | 23,668 | ||
2020 - 2024 | 119,109 | ||
Fair values of the plan assets held [Abstract] | |||
Assets, Fair Value Disclosure | 297,848 | 288,750 | 240,034 |
Qualified Pension Plan [Member] | EMC Insurance Companies [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plans, vest years of service | 3 years | ||
Defined benefit plan, age of attainment years | 55 years | ||
Change in plan assets [Abstract] | |||
Fair value of plan assets at beginning of year | 288,750 | ||
Fair value of plan assets at end of year | 297,848 | 288,750 | |
Weighted-average assumptions used to measure the benefit obligations [Abstract] | |||
Rate of compensation increase (in hundredths) | 4.73% | 4.73% | |
Weighted-average assumptions used to measure the net periodic benefit costs [Abstract] | |||
Rate of compensation increase (in hundredths) | 4.73% | 4.73% | 4.73% |
Fair values of the plan assets held [Abstract] | |||
Assets, Fair Value Disclosure | 297,848 | 288,750 | |
Defined Benefit Plan, Estimated Future Employer Contributions [Abstract] | |||
Defined Benefit Plan Estimated Future Parent Total Contributions Next Fiscal Year | 7,000 | ||
Qualified Pension Plan [Member] | EMC Insurance Companies [Member] | Bond and Mortgage Separate Account [Member] | |||
Change in plan assets [Abstract] | |||
Fair value of plan assets at end of year | 34,901 | 32,843 | |
Fair values of the plan assets held [Abstract] | |||
Assets, Fair Value Disclosure | 34,901 | 32,843 | |
Qualified Pension Plan [Member] | EMC Insurance Companies [Member] | U.S. Stock Funds Pooled Accounts [Member] | |||
Change in plan assets [Abstract] | |||
Fair value of plan assets at end of year | 119,577 | 110,279 | |
Fair values of the plan assets held [Abstract] | |||
Assets, Fair Value Disclosure | 119,577 | 110,279 | |
Qualified Pension Plan [Member] | EMC Insurance Companies [Member] | International Stock Funds Pooled Accounts [Member] | |||
Change in plan assets [Abstract] | |||
Fair value of plan assets at end of year | 57,955 | 62,840 | |
Fair values of the plan assets held [Abstract] | |||
Assets, Fair Value Disclosure | 57,955 | 62,840 | |
Qualified Pension Plan [Member] | EMC Insurance Companies [Member] | U.S. Bond Funds Pooled Accounts [Member] | |||
Change in plan assets [Abstract] | |||
Fair value of plan assets at end of year | 63,443 | 60,200 | |
Fair values of the plan assets held [Abstract] | |||
Assets, Fair Value Disclosure | 63,443 | 60,200 | |
Qualified Pension Plan [Member] | EMC Insurance Companies [Member] | Real Estate Separate Account [Member] | |||
Change in plan assets [Abstract] | |||
Fair value of plan assets at end of year | 17,735 | 13,758 | |
Fair values of the plan assets held [Abstract] | |||
Assets, Fair Value Disclosure | 17,735 | 13,758 | |
Qualified Pension Plan [Member] | EMC Insurance Companies [Member] | Short-Term Funds Pooled Accounts [Member] | |||
Change in plan assets [Abstract] | |||
Fair value of plan assets at end of year | 4,237 | 7,672 | |
Fair values of the plan assets held [Abstract] | |||
Assets, Fair Value Disclosure | 4,237 | 7,672 | |
Qualified Pension Plan [Member] | EMC Insurance Companies [Member] | Real Estate Securities Fund [Member] | |||
Change in plan assets [Abstract] | |||
Fair value of plan assets at end of year | 1,158 | ||
Fair values of the plan assets held [Abstract] | |||
Assets, Fair Value Disclosure | 1,158 | ||
Qualified Pension Plan [Member] | EMC Insurance Companies [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | |||
Change in plan assets [Abstract] | |||
Fair value of plan assets at end of year | 0 | 1,158 | |
Fair values of the plan assets held [Abstract] | |||
Assets, Fair Value Disclosure | 0 | 1,158 | |
Qualified Pension Plan [Member] | EMC Insurance Companies [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | Bond and Mortgage Separate Account [Member] | |||
Change in plan assets [Abstract] | |||
Fair value of plan assets at end of year | 0 | 0 | |
Fair values of the plan assets held [Abstract] | |||
Assets, Fair Value Disclosure | 0 | 0 | |
Qualified Pension Plan [Member] | EMC Insurance Companies [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | U.S. Stock Funds Pooled Accounts [Member] | |||
Change in plan assets [Abstract] | |||
Fair value of plan assets at end of year | 0 | 0 | |
Fair values of the plan assets held [Abstract] | |||
Assets, Fair Value Disclosure | 0 | 0 | |
Qualified Pension Plan [Member] | EMC Insurance Companies [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | International Stock Funds Pooled Accounts [Member] | |||
Change in plan assets [Abstract] | |||
Fair value of plan assets at end of year | 0 | 0 | |
Fair values of the plan assets held [Abstract] | |||
Assets, Fair Value Disclosure | 0 | 0 | |
Qualified Pension Plan [Member] | EMC Insurance Companies [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | U.S. Bond Funds Pooled Accounts [Member] | |||
Change in plan assets [Abstract] | |||
Fair value of plan assets at end of year | 0 | 0 | |
Fair values of the plan assets held [Abstract] | |||
Assets, Fair Value Disclosure | 0 | 0 | |
Qualified Pension Plan [Member] | EMC Insurance Companies [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | Real Estate Separate Account [Member] | |||
Change in plan assets [Abstract] | |||
Fair value of plan assets at end of year | 0 | 0 | |
Fair values of the plan assets held [Abstract] | |||
Assets, Fair Value Disclosure | 0 | 0 | |
Qualified Pension Plan [Member] | EMC Insurance Companies [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | Short-Term Funds Pooled Accounts [Member] | |||
Change in plan assets [Abstract] | |||
Fair value of plan assets at end of year | 0 | 0 | |
Fair values of the plan assets held [Abstract] | |||
Assets, Fair Value Disclosure | 0 | 0 | |
Qualified Pension Plan [Member] | EMC Insurance Companies [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | Real Estate Securities Fund [Member] | |||
Change in plan assets [Abstract] | |||
Fair value of plan assets at end of year | 1,158 | ||
Fair values of the plan assets held [Abstract] | |||
Assets, Fair Value Disclosure | 1,158 | ||
Qualified Pension Plan [Member] | EMC Insurance Companies [Member] | Significant other observable inputs (Level 2) [Member] | |||
Change in plan assets [Abstract] | |||
Fair value of plan assets at end of year | 297,848 | 287,592 | |
Fair values of the plan assets held [Abstract] | |||
Assets, Fair Value Disclosure | 297,848 | 287,592 | |
Qualified Pension Plan [Member] | EMC Insurance Companies [Member] | Significant other observable inputs (Level 2) [Member] | Bond and Mortgage Separate Account [Member] | |||
Change in plan assets [Abstract] | |||
Fair value of plan assets at end of year | 34,901 | 32,843 | |
Fair values of the plan assets held [Abstract] | |||
Assets, Fair Value Disclosure | 34,901 | 32,843 | |
Qualified Pension Plan [Member] | EMC Insurance Companies [Member] | Significant other observable inputs (Level 2) [Member] | U.S. Stock Funds Pooled Accounts [Member] | |||
Change in plan assets [Abstract] | |||
Fair value of plan assets at end of year | 119,577 | 110,279 | |
Fair values of the plan assets held [Abstract] | |||
Assets, Fair Value Disclosure | 119,577 | 110,279 | |
Qualified Pension Plan [Member] | EMC Insurance Companies [Member] | Significant other observable inputs (Level 2) [Member] | International Stock Funds Pooled Accounts [Member] | |||
Change in plan assets [Abstract] | |||
Fair value of plan assets at end of year | 57,955 | 62,840 | |
Fair values of the plan assets held [Abstract] | |||
Assets, Fair Value Disclosure | 57,955 | 62,840 | |
Qualified Pension Plan [Member] | EMC Insurance Companies [Member] | Significant other observable inputs (Level 2) [Member] | U.S. Bond Funds Pooled Accounts [Member] | |||
Change in plan assets [Abstract] | |||
Fair value of plan assets at end of year | 63,443 | 60,200 | |
Fair values of the plan assets held [Abstract] | |||
Assets, Fair Value Disclosure | 63,443 | 60,200 | |
Qualified Pension Plan [Member] | EMC Insurance Companies [Member] | Significant other observable inputs (Level 2) [Member] | Real Estate Separate Account [Member] | |||
Change in plan assets [Abstract] | |||
Fair value of plan assets at end of year | 17,735 | 13,758 | |
Fair values of the plan assets held [Abstract] | |||
Assets, Fair Value Disclosure | 17,735 | 13,758 | |
Qualified Pension Plan [Member] | EMC Insurance Companies [Member] | Significant other observable inputs (Level 2) [Member] | Short-Term Funds Pooled Accounts [Member] | |||
Change in plan assets [Abstract] | |||
Fair value of plan assets at end of year | 4,237 | 7,672 | |
Fair values of the plan assets held [Abstract] | |||
Assets, Fair Value Disclosure | 4,237 | 7,672 | |
Qualified Pension Plan [Member] | EMC Insurance Companies [Member] | Significant other observable inputs (Level 2) [Member] | Real Estate Securities Fund [Member] | |||
Change in plan assets [Abstract] | |||
Fair value of plan assets at end of year | 0 | ||
Fair values of the plan assets held [Abstract] | |||
Assets, Fair Value Disclosure | 0 | ||
Qualified Pension Plan [Member] | EMC Insurance Companies [Member] | Significant unobservable inputs (Level 3) [Member] | |||
Change in plan assets [Abstract] | |||
Fair value of plan assets at end of year | 0 | 0 | |
Fair values of the plan assets held [Abstract] | |||
Assets, Fair Value Disclosure | 0 | 0 | |
Qualified Pension Plan [Member] | EMC Insurance Companies [Member] | Significant unobservable inputs (Level 3) [Member] | Bond and Mortgage Separate Account [Member] | |||
Change in plan assets [Abstract] | |||
Fair value of plan assets at end of year | 0 | 0 | |
Fair values of the plan assets held [Abstract] | |||
Assets, Fair Value Disclosure | 0 | 0 | |
Qualified Pension Plan [Member] | EMC Insurance Companies [Member] | Significant unobservable inputs (Level 3) [Member] | U.S. Stock Funds Pooled Accounts [Member] | |||
Change in plan assets [Abstract] | |||
Fair value of plan assets at end of year | 0 | 0 | |
Fair values of the plan assets held [Abstract] | |||
Assets, Fair Value Disclosure | 0 | 0 | |
Qualified Pension Plan [Member] | EMC Insurance Companies [Member] | Significant unobservable inputs (Level 3) [Member] | International Stock Funds Pooled Accounts [Member] | |||
Change in plan assets [Abstract] | |||
Fair value of plan assets at end of year | 0 | 0 | |
Fair values of the plan assets held [Abstract] | |||
Assets, Fair Value Disclosure | 0 | 0 | |
Qualified Pension Plan [Member] | EMC Insurance Companies [Member] | Significant unobservable inputs (Level 3) [Member] | U.S. Bond Funds Pooled Accounts [Member] | |||
Change in plan assets [Abstract] | |||
Fair value of plan assets at end of year | 0 | 0 | |
Fair values of the plan assets held [Abstract] | |||
Assets, Fair Value Disclosure | 0 | 0 | |
Qualified Pension Plan [Member] | EMC Insurance Companies [Member] | Significant unobservable inputs (Level 3) [Member] | Real Estate Separate Account [Member] | |||
Change in plan assets [Abstract] | |||
Fair value of plan assets at end of year | 0 | 0 | |
Fair values of the plan assets held [Abstract] | |||
Assets, Fair Value Disclosure | 0 | 0 | |
Qualified Pension Plan [Member] | EMC Insurance Companies [Member] | Significant unobservable inputs (Level 3) [Member] | Short-Term Funds Pooled Accounts [Member] | |||
Change in plan assets [Abstract] | |||
Fair value of plan assets at end of year | 0 | 0 | |
Fair values of the plan assets held [Abstract] | |||
Assets, Fair Value Disclosure | 0 | 0 | |
Qualified Pension Plan [Member] | EMC Insurance Companies [Member] | Significant unobservable inputs (Level 3) [Member] | Real Estate Securities Fund [Member] | |||
Change in plan assets [Abstract] | |||
Fair value of plan assets at end of year | 0 | ||
Fair values of the plan assets held [Abstract] | |||
Assets, Fair Value Disclosure | 0 | ||
Non-Qualified Pension Plan [Member] | EMC Insurance Companies [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plans, vest years of service | 3 years | ||
Plans with Accumulated Benefit Obligations in Excess of Plan Assets [Abstract] | |||
Projected benefit obligation | 13,057 | 10,856 | |
Accumulated benefit obligation | 12,121 | 10,485 | |
Fair value of plan assets | 0 | 0 | |
Weighted-average assumptions used to measure the benefit obligations [Abstract] | |||
Rate of compensation increase (in hundredths) | 4.68% | 4.68% | |
Weighted-average assumptions used to measure the net periodic benefit costs [Abstract] | |||
Rate of compensation increase (in hundredths) | 4.68% | 4.68% | 4.68% |
Postretirement Benefit Plans [Member] | Net [Member] | |||
Expected future benefit payments to be paid from the plans over the next ten years [Abstract] | |||
2015 | 2,698 | ||
2016 | 2,861 | ||
2017 | 2,966 | ||
2018 | 3,172 | ||
2019 | 3,259 | ||
2020 - 2024 | 16,966 | ||
Postretirement Benefit Plans [Member] | EMC Insurance Group, Inc. [Member] | |||
Change in projected benefit obligation [Abstract] | |||
Plan amendments | 26,937 | ||
Amortization Period For Prior Service Credit From Plan Amendment | 10 years | ||
Assets [Abstract] | |||
Prepaid pension and postretirement benefits | 4,093 | 4,811 | |
Liability [Abstract] | |||
Pension and postretirement benefits | 0 | 0 | |
Net amount recognized | 4,093 | 4,811 | |
Amounts recognized in the Company's consolidated balance sheets under the caption "accumulated other comprehensive income", before deferred income taxes [Abstract] | |||
Net actuarial loss | -7,258 | -6,827 | |
Prior service (cost) credit | 27,458 | 30,828 | |
Net amount recognized | 20,200 | 24,001 | |
Amounts that will be amortized from accumulated other comprehensive income (loss) in next fiscal year [Abstract] | |||
Amortization of net actuarial loss | 494 | ||
Amortization of prior service cost (credit) | 3,317 | ||
Amounts recognized in the Company's consolidated statements of comprehensive income [Abstract] | |||
Net actuarial gain (loss) | -431 | 8,306 | |
Prior service (cost) credit | -3,370 | 26,274 | |
Net amount recognized | -3,801 | 34,580 | |
Components of net periodic benefit cost [Abstract] | |||
Net periodic benefit cost | -3,083 | 2,912 | 3,287 |
Postretirement Benefit Plans [Member] | EMC Insurance Companies [Member] | |||
Change in projected benefit obligation [Abstract] | |||
Benefit obligation at beginning of year | 50,006 | 155,102 | |
Service cost | 1,260 | 6,300 | 6,150 |
Interest cost | 2,254 | 6,172 | 6,537 |
Actuarial (gain) loss | 3,516 | -18,582 | |
Benefits paid | -2,533 | -2,588 | |
Medicare subsidy reimbursements | 0 | 306 | |
Plan amendments | 0 | -96,704 | |
Projected benefit obligation at end of year | 54,503 | 50,006 | 155,102 |
Change in plan assets [Abstract] | |||
Fair value of plan assets at beginning of year | 67,276 | 57,815 | |
Actual return on plan assets | 4,547 | 11,549 | |
Employer contributions | 0 | 500 | |
Benefits paid | -2,533 | -2,588 | |
Fair value of plan assets at end of year | 69,290 | 67,276 | 57,815 |
Funded status | 14,787 | 17,270 | |
Components of net periodic benefit cost [Abstract] | |||
Service cost | 1,260 | 6,300 | 6,150 |
Interest cost | 2,254 | 6,172 | 6,537 |
Expected return on plan assets | -4,396 | -3,631 | -3,219 |
Amortization of net actuarial loss | 1,651 | 3,694 | 4,008 |
Amortization of prior service cost (credit) | -11,466 | -2,491 | -2,131 |
Net periodic benefit cost | -10,697 | 10,044 | 11,345 |
Weighted-average assumptions used to measure the benefit obligations [Abstract] | |||
Discount rate (in hundredths) | 4.04% | 4.71% | |
Weighted-average assumptions used to measure the net periodic benefit costs [Abstract] | |||
Discount rate (in hundredths) | 4.71% | 4.03% | 4.59% |
Expected long-term rate of return on plan assets (in hundredths) | 6.75% | 6.50% | 6.25% |
Assumed health care cost trend rate [Abstract] | |||
Health care cost trend rate assumed for next year (in hundredths) | 7.50% | ||
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) (in hundredths) | 5.00% | ||
Year that the rate reaches the ultimate trend rate | 2024 | ||
Fair values of the plan assets held [Abstract] | |||
Assets, Fair Value Disclosure | 69,290 | 67,276 | 57,815 |
VEBA Trust [Member] | EMC Insurance Companies [Member] | |||
Change in plan assets [Abstract] | |||
Fair value of plan assets at end of year | 69,290 | 67,276 | |
Fair values of the plan assets held [Abstract] | |||
Assets, Fair Value Disclosure | 69,290 | 67,276 | |
Defined Benefit Plan, Estimated Future Employer Contributions [Abstract] | |||
Defined Benefit Plan Estimated Future Parent Total Contributions Next Fiscal Year | 0 | ||
VEBA Trust [Member] | EMC Insurance Companies [Member] | Money Market Funds [Member] | |||
Change in plan assets [Abstract] | |||
Fair value of plan assets at end of year | 4,644 | 575 | |
Fair values of the plan assets held [Abstract] | |||
Net asset value per share (in dollars per share) | $1 | ||
Assets, Fair Value Disclosure | 4,644 | 575 | |
VEBA Trust [Member] | EMC Insurance Companies [Member] | Emerging Markets ETF [Member] | |||
Change in plan assets [Abstract] | |||
Fair value of plan assets at end of year | 4,187 | 3,224 | |
Fair values of the plan assets held [Abstract] | |||
Assets, Fair Value Disclosure | 4,187 | 3,224 | |
VEBA Trust [Member] | EMC Insurance Companies [Member] | Equity Mutual Funds [Member] | |||
Change in plan assets [Abstract] | |||
Fair value of plan assets at end of year | 36,451 | 39,710 | |
Fair values of the plan assets held [Abstract] | |||
Assets, Fair Value Disclosure | 36,451 | 39,710 | |
VEBA Trust [Member] | EMC Insurance Companies [Member] | Tax Exempt Fixed Income Mutual Funds [Member] | |||
Change in plan assets [Abstract] | |||
Fair value of plan assets at end of year | 3,425 | 2,865 | |
Fair values of the plan assets held [Abstract] | |||
Assets, Fair Value Disclosure | 3,425 | 2,865 | |
VEBA Trust [Member] | EMC Insurance Companies [Member] | International Equity Mutual Funds [Member] | |||
Change in plan assets [Abstract] | |||
Fair value of plan assets at end of year | 7,175 | 7,675 | |
Fair values of the plan assets held [Abstract] | |||
Assets, Fair Value Disclosure | 7,175 | 7,675 | |
VEBA Trust [Member] | EMC Insurance Companies [Member] | Life Insurance Contracts [Member] | |||
Change in plan assets [Abstract] | |||
Fair value of plan assets at beginning of year | 13,227 | ||
Fair value of plan assets at end of year | 13,408 | 13,227 | |
Fair values of the plan assets held [Abstract] | |||
Assets, Fair Value Disclosure | 13,408 | 13,227 | |
Reconciliation of the plan assets measured at fair value using significant unobservable inputs (Level 3) [Roll Forward] | |||
Beginning balance | 13,227 | 12,872 | |
Actual return on plan assets [Abstract] | |||
Increase in cash accumulation value of life insurance contracts | 367 | 355 | |
Gain on life insurance death benefit | 89 | 0 | |
Settlement of life insurance death benefit | -275 | 0 | |
Balance at end of period | 13,408 | 13,227 | |
VEBA Trust [Member] | EMC Insurance Companies [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | |||
Change in plan assets [Abstract] | |||
Fair value of plan assets at end of year | 55,882 | 54,049 | |
Fair values of the plan assets held [Abstract] | |||
Assets, Fair Value Disclosure | 55,882 | 54,049 | |
VEBA Trust [Member] | EMC Insurance Companies [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | Money Market Funds [Member] | |||
Change in plan assets [Abstract] | |||
Fair value of plan assets at end of year | 4,644 | 575 | |
Fair values of the plan assets held [Abstract] | |||
Assets, Fair Value Disclosure | 4,644 | 575 | |
VEBA Trust [Member] | EMC Insurance Companies [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | Emerging Markets ETF [Member] | |||
Change in plan assets [Abstract] | |||
Fair value of plan assets at end of year | 4,187 | 3,224 | |
Fair values of the plan assets held [Abstract] | |||
Assets, Fair Value Disclosure | 4,187 | 3,224 | |
VEBA Trust [Member] | EMC Insurance Companies [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | Equity Mutual Funds [Member] | |||
Change in plan assets [Abstract] | |||
Fair value of plan assets at end of year | 36,451 | 39,710 | |
Fair values of the plan assets held [Abstract] | |||
Assets, Fair Value Disclosure | 36,451 | 39,710 | |
VEBA Trust [Member] | EMC Insurance Companies [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | Tax Exempt Fixed Income Mutual Funds [Member] | |||
Change in plan assets [Abstract] | |||
Fair value of plan assets at end of year | 3,425 | 2,865 | |
Fair values of the plan assets held [Abstract] | |||
Assets, Fair Value Disclosure | 3,425 | 2,865 | |
VEBA Trust [Member] | EMC Insurance Companies [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | International Equity Mutual Funds [Member] | |||
Change in plan assets [Abstract] | |||
Fair value of plan assets at end of year | 7,175 | 7,675 | |
Fair values of the plan assets held [Abstract] | |||
Assets, Fair Value Disclosure | 7,175 | 7,675 | |
VEBA Trust [Member] | EMC Insurance Companies [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | Life Insurance Contracts [Member] | |||
Change in plan assets [Abstract] | |||
Fair value of plan assets at end of year | 0 | 0 | |
Fair values of the plan assets held [Abstract] | |||
Assets, Fair Value Disclosure | 0 | 0 | |
VEBA Trust [Member] | EMC Insurance Companies [Member] | Significant other observable inputs (Level 2) [Member] | |||
Change in plan assets [Abstract] | |||
Fair value of plan assets at end of year | 0 | 0 | |
Fair values of the plan assets held [Abstract] | |||
Assets, Fair Value Disclosure | 0 | 0 | |
VEBA Trust [Member] | EMC Insurance Companies [Member] | Significant other observable inputs (Level 2) [Member] | Money Market Funds [Member] | |||
Change in plan assets [Abstract] | |||
Fair value of plan assets at end of year | 0 | 0 | |
Fair values of the plan assets held [Abstract] | |||
Assets, Fair Value Disclosure | 0 | 0 | |
VEBA Trust [Member] | EMC Insurance Companies [Member] | Significant other observable inputs (Level 2) [Member] | Emerging Markets ETF [Member] | |||
Change in plan assets [Abstract] | |||
Fair value of plan assets at end of year | 0 | 0 | |
Fair values of the plan assets held [Abstract] | |||
Assets, Fair Value Disclosure | 0 | 0 | |
VEBA Trust [Member] | EMC Insurance Companies [Member] | Significant other observable inputs (Level 2) [Member] | Equity Mutual Funds [Member] | |||
Change in plan assets [Abstract] | |||
Fair value of plan assets at end of year | 0 | 0 | |
Fair values of the plan assets held [Abstract] | |||
Assets, Fair Value Disclosure | 0 | 0 | |
VEBA Trust [Member] | EMC Insurance Companies [Member] | Significant other observable inputs (Level 2) [Member] | Tax Exempt Fixed Income Mutual Funds [Member] | |||
Change in plan assets [Abstract] | |||
Fair value of plan assets at end of year | 0 | 0 | |
Fair values of the plan assets held [Abstract] | |||
Assets, Fair Value Disclosure | 0 | 0 | |
VEBA Trust [Member] | EMC Insurance Companies [Member] | Significant other observable inputs (Level 2) [Member] | International Equity Mutual Funds [Member] | |||
Change in plan assets [Abstract] | |||
Fair value of plan assets at end of year | 0 | 0 | |
Fair values of the plan assets held [Abstract] | |||
Assets, Fair Value Disclosure | 0 | 0 | |
VEBA Trust [Member] | EMC Insurance Companies [Member] | Significant other observable inputs (Level 2) [Member] | Life Insurance Contracts [Member] | |||
Change in plan assets [Abstract] | |||
Fair value of plan assets at end of year | 0 | 0 | |
Fair values of the plan assets held [Abstract] | |||
Assets, Fair Value Disclosure | 0 | 0 | |
VEBA Trust [Member] | EMC Insurance Companies [Member] | Significant unobservable inputs (Level 3) [Member] | |||
Change in plan assets [Abstract] | |||
Fair value of plan assets at end of year | 13,408 | 13,227 | |
Fair values of the plan assets held [Abstract] | |||
Assets, Fair Value Disclosure | 13,408 | 13,227 | |
VEBA Trust [Member] | EMC Insurance Companies [Member] | Significant unobservable inputs (Level 3) [Member] | Money Market Funds [Member] | |||
Change in plan assets [Abstract] | |||
Fair value of plan assets at end of year | 0 | 0 | |
Fair values of the plan assets held [Abstract] | |||
Assets, Fair Value Disclosure | 0 | 0 | |
VEBA Trust [Member] | EMC Insurance Companies [Member] | Significant unobservable inputs (Level 3) [Member] | Emerging Markets ETF [Member] | |||
Change in plan assets [Abstract] | |||
Fair value of plan assets at end of year | 0 | 0 | |
Fair values of the plan assets held [Abstract] | |||
Assets, Fair Value Disclosure | 0 | 0 | |
VEBA Trust [Member] | EMC Insurance Companies [Member] | Significant unobservable inputs (Level 3) [Member] | Equity Mutual Funds [Member] | |||
Change in plan assets [Abstract] | |||
Fair value of plan assets at end of year | 0 | 0 | |
Fair values of the plan assets held [Abstract] | |||
Assets, Fair Value Disclosure | 0 | 0 | |
VEBA Trust [Member] | EMC Insurance Companies [Member] | Significant unobservable inputs (Level 3) [Member] | Tax Exempt Fixed Income Mutual Funds [Member] | |||
Change in plan assets [Abstract] | |||
Fair value of plan assets at end of year | 0 | 0 | |
Fair values of the plan assets held [Abstract] | |||
Assets, Fair Value Disclosure | 0 | 0 | |
VEBA Trust [Member] | EMC Insurance Companies [Member] | Significant unobservable inputs (Level 3) [Member] | International Equity Mutual Funds [Member] | |||
Change in plan assets [Abstract] | |||
Fair value of plan assets at end of year | 0 | 0 | |
Fair values of the plan assets held [Abstract] | |||
Assets, Fair Value Disclosure | 0 | 0 | |
VEBA Trust [Member] | EMC Insurance Companies [Member] | Significant unobservable inputs (Level 3) [Member] | Life Insurance Contracts [Member] | |||
Change in plan assets [Abstract] | |||
Fair value of plan assets at end of year | 13,408 | 13,227 | |
Fair values of the plan assets held [Abstract] | |||
Assets, Fair Value Disclosure | $13,408 | $13,227 |
STOCKBASED_COMPENSATION_Detail
STOCK-BASED COMPENSATION (Details) (USD $) | 12 Months Ended | |||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Apr. 26, 2013 |
Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of stock option plans | 2 | |||
Recognized compensation expense | $357 | $289 | $240 | |
Recognized compensation expense, net of tax | 233 | 190 | 174 | |
Excess tax benefit associated with affiliatebs stock plans | 103 | 96 | -3 | |
Stock Appreciation Rights plan recognized expense | 15 | |||
Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 4 years | 4 years | ||
Unrecognized compensation cost associated with restricted stock awards, not currently vested | 690 | |||
Weighted-average period over which the compensation expense is expected to be recognized | 2 years 9 months 3 days | |||
Total fair value of restricted stock awards that vested | 110 | 0 | ||
Non-vested restricted stock awards activity in shares | ||||
Non-vested, beginning of year (in shares) | 56,668 | 0 | ||
Granted (in shares) | 62,764 | 57,720 | ||
Vested (in shares) | 14,117 | 0 | ||
Forfeited (in shares) | -1,375 | -1,052 | ||
Non-vested, end of year (in shares) | 103,940 | 56,668 | ||
Non-vested restricted stock awards activity in dollars per share weighted-average grant-date fair value | ||||
Non-vested, beginning of year (in dollars per share) | $25.90 | $0 | ||
Granted (in dollars per share) | $30.74 | $25.90 | ||
Vested (in dollars per share) | $25.90 | $0 | ||
Forfeited (in dollars per share) | $26.61 | $25.90 | ||
Non-vested, end of year (in dollars per share) | $28.81 | $25.90 | ||
Employee Stock Option [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 5 years | 5 years | 5 years | |
Unrecognized compensation cost associated with option awards, not currently vested | 194 | |||
Weighted-average period over which the compensation expense is expected to be recognized | 1 year 6 months 21 days | |||
Total intrinsic value of options exercised under Employers Mutual's stock option plans | 606 | 844 | 54 | |
Portion of the current tax deduction realized from exercises of stock options | 152 | 165 | 2 | |
Excess tax benefit associated with affiliatebs stock plans | 103 | 96 | -3 | |
Number of options [Roll Forward] | ||||
Outstanding, beginning of year (in shares) | 1,135,207 | 1,588,958 | 1,437,095 | |
Granted (in shares) | 0 | 0 | 263,162 | |
Exercised (in shares) | -200,304 | -406,532 | -42,619 | |
Expired (in shares) | -22,945 | -47,219 | -68,680 | |
Forfeited (in shares) | 10,825 | 0 | 0 | |
Outstanding, end of year (in shares) | 901,133 | 1,135,207 | 1,588,958 | |
Options Exercisable, end of year (in shares) | 642,464 | 686,863 | 894,706 | |
Weighted-average exercise price [Roll Forward] | ||||
Outstanding, beginning of year (in dollars per share) | $22.17 | $21.89 | $21.92 | |
Granted (in dollars per share) | $0 | $0 | $20.98 | |
Exercised (in dollars per share) | $21.36 | $21.26 | $17.97 | |
Expired (in dollars per share) | $22.52 | $20.35 | $21.51 | |
Forfeited (in dollars per share) | $22.94 | $0 | $0 | |
Outstanding, end of year (in dollars per share) | $22.34 | $22.17 | $21.89 | |
Exercisable, end of year (in dollars per share) | $22.41 | $22.37 | $21.96 | |
Share-based payment award, fair value assumptions and methodology [Abstract] | ||||
Estimated dividend yield (in hundredths) | 3.81% | |||
Minimum, Expected volatility (in hundredths) | 25.20% | |||
Maximum, Expected volatility (in hundredths) | 44.70% | |||
Weighted-average volatility (in hundredths) | 35.61% | |||
Minimum, Risk-free interest rate (in hundredths) | 0.06% | |||
Maximum, Risk-free interest rate (in hundredths) | 1.51% | |||
Abbreviated period granted to option holders to exercise options retirement | 90 days | 90 days | 90 days | |
Additional information relating to options outstanding and options vested (exercisable) [Abstract] | ||||
Options outstanding, Number of options (in shares) | 901,133 | |||
Options outstanding, Weighted-average exercise price (in dollars per share) | $22.34 | |||
Options outstanding, Aggregate intrinsic value | 11,164 | |||
Options outstanding, Weighted-average remaining term | 4 years 3 months 18 days | |||
Options exercisable, Number of options (in shares) | 642,464 | |||
Options exercisable, Weighted-average exercise price (in dollars per share) | $22.41 | |||
Options exercisable, Aggregate intrinsic value | 7,912 | |||
Options exercisable, Weighted-average remaining term | 3 years 7 months 9 days | |||
Employee Stock Option [Member] | Minimum [Member] | ||||
Share-based payment award, fair value assumptions and methodology [Abstract] | ||||
Expected term (years) | 3 months | |||
Employee Stock Option [Member] | Maximum [Member] | ||||
Share-based payment award, fair value assumptions and methodology [Abstract] | ||||
Expected term (years) | 6 years 4 months 24 days | |||
Employee Stock Purchase Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Registered shares (in shares) | 500,000 | 500,000 | 500,000 | |
Fair market value of the stock on the date of purchase (in hundredths) | 85.00% | 85.00% | 85.00% | |
Employee stock purchase plan administrative expense | 35 | 45 | 39 | |
Other Stock Purchase Plan Shares Activity [Roll Forward] | ||||
Shares available for purchase, beginning of year (in shares) | 339,166 | 370,400 | 407,102 | |
Shares purchased under the plan (in shares) | -24,860 | -31,234 | -36,702 | |
Shares available for purchase, end of year (in shares) | 314,306 | 339,166 | 370,400 | |
Other stock purchase plan stock option exercise price range lower range limit (in dollars per share) | $24.93 | |||
Other stock purchase plan stock option exercise price range upper range limit (in dollars per share) | $30.32 | |||
Non-Employee Director Stock Option Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Fair market value to purchase stock under Non-employee director stock option plan (in hundredths) | 75.00% | 75.00% | 75.00% | |
Minimum cash retainer used to purchase common stock (in hundredths) | 25.00% | 25.00% | 25.00% | |
Maximum cash retainer used to purchase common stock (in hundredths) | 100.00% | 100.00% | 100.00% | |
Non employee director stock option plan administrative expense | $49 | $36 | $22 | |
Other Stock Purchase Plan Shares Activity [Roll Forward] | ||||
Shares available for purchase, beginning of year (in shares) | 196,165 | 149,404 | 155,467 | |
Shares registered during period (in shares) | 0 | 200,000 | 0 | |
Shares deregistered during period (in shares) | 0 | -148,204 | 0 | |
Shares purchased under the plan (in shares) | -9,626 | -5,035 | -6,063 | |
Shares available for purchase, end of year (in shares) | 186,539 | 196,165 | 149,404 | |
Other stock purchase plan stock option exercise price range lower range limit (in dollars per share) | $21.56 | |||
Other stock purchase plan stock option exercise price range upper range limit (in dollars per share) | $24.31 | |||
Dividend Reinvestment Plan [Member] | ||||
Other Stock Purchase Plan Shares Activity [Roll Forward] | ||||
Shares available for purchase, beginning of year (in shares) | 658,957 | 0 | 161,236 | |
Shares registered during period (in shares) | 0 | 661,185 | 0 | |
Shares deregistered during period (in shares) | 0 | 0 | -161,185 | |
Shares purchased under the plan (in shares) | -4,139 | -2,228 | -51 | |
Shares available for purchase, end of year (in shares) | 654,818 | 658,957 | 0 | |
Other stock purchase plan stock option exercise price range lower range limit (in dollars per share) | $28.03 | $28.11 | $21.38 | |
Other stock purchase plan stock option exercise price range upper range limit (in dollars per share) | $35.39 | $31.47 | $23.22 | |
Employers Mutual Casualty Company Incentive Stock Option 1993 Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Deregistered shares (in shares) | 105,120 | |||
Employers Mutual Casualty Company Incentive Stock Option 2003 Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Registered shares (in shares) | 1,500,000 | 1,500,000 | 1,500,000 | |
Time limit for granting awards | 10 years | 10 years | 10 years | |
Employers Mutual Casualty Company Stock Incentive 2007 Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Registered shares (in shares) | 2,000,000 | 2,000,000 | 2,000,000 | |
Time limit for granting awards | 10 years | 10 years | 10 years |
ACCUMULATED_OTHER_COMPREHENSIV2
ACCUMULATED OTHER COMPREHENSIVE INCOME - Components of Accumulated Other Comprehensive Income (Details) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||||
Beginning balance | $59,010 | [1] | $47,752 | [1] | ||
Other comprehensive income (loss) before reclassifications | 29,103 | [1] | 15,684 | [1] | ||
Amounts reclassified from accumulated other comprehensive income | -6,451 | [1] | -4,426 | [1] | ||
Other comprehensive income | 22,652 | [1] | 11,258 | [1] | 20,412 | |
Balance at end of period | 81,662 | [1] | 59,010 | [1] | 47,752 | [1] |
Unrealized Gains and (Losses) on Available-for-sale securities | ||||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||||
Beginning balance | 48,376 | [1] | 69,806 | [1] | ||
Other comprehensive income (loss) before reclassifications | 34,663 | [1] | -15,582 | [1] | ||
Amounts reclassified from accumulated other comprehensive income | -4,677 | [1] | -5,848 | [1] | ||
Other comprehensive income | 29,986 | [1] | -21,430 | [1] | ||
Balance at end of period | 78,362 | [1] | 48,376 | [1] | ||
Unrecognized pension and postretirement benefit obligations | ||||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||||
Beginning balance | 10,634 | [1] | -22,054 | [1] | ||
Other comprehensive income (loss) before reclassifications | -5,560 | [1] | 31,266 | [1] | ||
Amounts reclassified from accumulated other comprehensive income | -1,774 | [1] | 1,422 | [1] | ||
Other comprehensive income | -7,334 | [1] | 32,688 | [1] | ||
Balance at end of period | $3,300 | [1] | $10,634 | [1] | ||
[1] | All amounts are net of tax. Amounts in parentheses indicate debits. |
ACCUMULATED_OTHER_COMPREHENSIV3
ACCUMULATED OTHER COMPREHENSIVE INCOME - Reclassifications out of Accumulated Other Comprehensive Income (Details) (USD $) | 12 Months Ended | ||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||
Net realized investment gains (losses) | $4,349 | $8,997 | $8,017 | ||
Income tax expense (benefit), current | -7,280 | -16,927 | -11,594 | ||
Total reclassification adjustment | 6,451 | [1] | 4,426 | [1] | |
Unrealized Gains and (Losses) on Available-for-sale securities | Reclassification Out Of Accumulated Other Comprehensive Income [Member] | |||||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||
Net realized investment gains (losses) | 7,195 | [1] | 8,997 | [1] | |
Income tax expense (benefit), current | -2,518 | [1] | -3,149 | [1] | |
Total reclassification adjustment | 4,677 | [1] | 5,848 | [1] | |
Unrecognized pension and postretirement benefit obligations | Reclassification Out Of Accumulated Other Comprehensive Income [Member] | |||||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||
Net actuarial loss | -578 | [1],[2] | -2,895 | [1],[2] | |
Prior service credit | 3,307 | [1],[2] | 708 | [1],[2] | |
Total before tax | 2,729 | [1] | -2,187 | [1] | |
Income tax expense (benefit), current | -955 | [1] | 765 | [1] | |
Total reclassification adjustment | $1,774 | [1] | ($1,422) | [1] | |
[1] | Amounts in parentheses indicate debits to net income | ||||
[2] | These accumulated other comprehensive income components are included in the computation of net periodic pension and postretirement benefit cost (income) (see Note 12, Employee Retirement Plans, for additional details). |
STOCK_REPURCHASE_PROGRAMS_Deta
STOCK REPURCHASE PROGRAMS (Details) (USD $) | 3 Months Ended | 12 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2005 | Dec. 31, 2014 | Nov. 03, 2011 |
Equity [Abstract] | |||
Authorized amount of stock repurchase program | $15,000 | ||
Parent entity stock purchase program authorized amount | 15,000 | ||
Parent entity stock purchase program remaining authorized purchase amount | $4,491 |
LEASES_COMMITMENTS_AND_CONTING2
LEASES, COMMITMENTS AND CONTINGENT LIABILITIES (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Lease commitments, Payments due by period [Abstract] | ||
Real estate operating leases, Total | $8,632 | |
Real estate operating leases, Less than 1 year | 1,341 | |
Real estate operating leases, 1 - 3 years | 2,510 | |
Real estate operating leases, 4 - 5 years | 2,287 | |
Real estate operating leases, More than 5 years | 2,494 | |
Loss Contingencies [Line Items] | ||
Premium tax offsets | 969 | 894 |
Period for guaranty fund assessments expected to be paid | 2 years | |
Period for premium tax offsets are expected to be realized | 10 years | |
Entity's share of case loss reserves, eliminated by the purchase of annuities | 110 | |
Contingent liability for aggregate guaranteed amount of annuities | 183 | |
Guaranty Fund [Member] | ||
Loss Contingencies [Line Items] | ||
Accrued estimated fund assessments | 931 | 894 |
Second-Injury Fund [Member] | ||
Loss Contingencies [Line Items] | ||
Accrued estimated fund assessments | $1,694 | $1,747 |
UNAUDITED_INTERIM_FINANCIAL_IN2
UNAUDITED INTERIM FINANCIAL INFORMATION (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||
Total revenues (1) | $149,844 | [1] | $150,659 | [1] | $147,733 | [1] | $146,231 | [1] | $151,683 | [1] | $143,552 | [1] | $138,466 | [1] | $134,284 | [1] | $594,467 | $567,985 | $511,842 |
Income before income tax expense | 23,865 | 1,883 | 270 | 14,889 | 22,831 | 9,564 | 7,949 | 20,509 | 40,907 | 60,853 | 51,633 | ||||||||
Income tax expense (benefit) | 7,711 | -346 | -744 | 4,294 | 6,996 | 2,365 | 1,737 | 6,236 | 10,915 | 17,334 | 13,667 | ||||||||
Net income | $16,154 | $2,229 | $1,014 | $10,595 | $15,835 | $7,199 | $6,212 | $14,273 | $29,992 | $43,519 | $37,966 | ||||||||
Net income per common share - basic and diluted (2) | $1.19 | [2] | $0.16 | [2] | $0.08 | [2] | $0.79 | [2] | $1.20 | [2] | $0.55 | [2] | $0.48 | [2] | $1.10 | [2] | $2.23 | $3.33 | $2.95 |
[1] | Amounts include the reclassification of foreign currency exchange rate gains (losses) to other income in the consolidated financial statements. Prior to the fourth quarter of 2014, these amounts were reported as a component of other expenses. | ||||||||||||||||||
[2] | Since the weighted-average number of shares outstanding for the quarters are calculated independently of the weighted-average number of shares outstanding for the year, quarterly net income per share may not total to annual net income per share. |
Schedule_I_Summary_of_Investme1
Schedule I - Summary of Investments-Other than Investments in Related Parties (Details) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | $1,263,467 |
Fair value | 1,384,024 |
Amount at which shown in the balance sheet | 1,384,024 |
Debt Securities [Member] | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 1,080,006 |
Fair value | 1,127,499 |
Amount at which shown in the balance sheet | 1,127,499 |
US Treasury Securities [Member] | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 9,574 |
Fair value | 9,703 |
Amount at which shown in the balance sheet | 9,703 |
US Government-sponsored Enterprises Debt Securities [Member] | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 215,425 |
Fair value | 215,616 |
Amount at which shown in the balance sheet | 215,616 |
Obligations of States and Political Subdivisions [Member] | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 299,258 |
Fair value | 326,058 |
Amount at which shown in the balance sheet | 326,058 |
Commercial Mortgage Backed Securities [Member] | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 42,996 |
Fair value | 46,762 |
Amount at which shown in the balance sheet | 46,762 |
Residential Mortgage Backed Securities [Member] | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 100,296 |
Fair value | 97,953 |
Amount at which shown in the balance sheet | 97,953 |
Other Asset Backed [Member] | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 14,798 |
Fair value | 16,005 |
Amount at which shown in the balance sheet | 16,005 |
Corporate Debt Securities [Member] | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 397,659 |
Fair value | 415,402 |
Amount at which shown in the balance sheet | 415,402 |
Equity Securities [Member] | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 123,972 |
Fair value | 197,036 |
Amount at which shown in the balance sheet | 197,036 |
Common stocks Financial services [Member] | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 22,586 |
Fair value | 34,379 |
Amount at which shown in the balance sheet | 34,379 |
Common stocks Information technology [Member] | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 15,755 |
Fair value | 26,865 |
Amount at which shown in the balance sheet | 26,865 |
Common stocks Healthcare [Member] | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 14,673 |
Fair value | 26,852 |
Amount at which shown in the balance sheet | 26,852 |
Common stocks Consumer staples [Member] | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 10,584 |
Fair value | 16,694 |
Amount at which shown in the balance sheet | 16,694 |
Common stocks Consumer discretionary [Member] | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 11,304 |
Fair value | 22,691 |
Amount at which shown in the balance sheet | 22,691 |
Common stocks Energy [Member] | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 15,837 |
Fair value | 22,863 |
Amount at which shown in the balance sheet | 22,863 |
Common stocks Industrials [Member] | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 9,658 |
Fair value | 18,221 |
Amount at which shown in the balance sheet | 18,221 |
Common stocks Other [Member] | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 11,493 |
Fair value | 16,056 |
Amount at which shown in the balance sheet | 16,056 |
Nonredeemable Preferred Stock [Member] | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 12,082 |
Fair value | 12,415 |
Amount at which shown in the balance sheet | 12,415 |
Other Long-term Investments [Member] | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 6,227 |
Fair value | 6,227 |
Amount at which shown in the balance sheet | 6,227 |
Short-term Investments [Member] | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Cost | 53,262 |
Fair value | 53,262 |
Amount at which shown in the balance sheet | $53,262 |
Schedule_II_Condensed_Financia1
Schedule II - Condensed Financial Information of Registrant (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||||||||||
ASSETS | |||||||||||||||||||||||
Short-term investments | $53,262 | $56,166 | $53,262 | $56,166 | |||||||||||||||||||
Cash | 383 | 239 | 383 | 239 | 330 | ||||||||||||||||||
Accounts receivable | 1,767 | 1,080 | 1,767 | 1,080 | |||||||||||||||||||
Total assets | 1,994,576 | 1,816,966 | 1,994,576 | 1,816,966 | |||||||||||||||||||
LIABILITIES | |||||||||||||||||||||||
Amounts due affiliate to settle inter-company transaction balances | 8,559 | 9,090 | 8,559 | 9,090 | |||||||||||||||||||
Total liabilities | 994,934 | 919,291 | 994,934 | 919,291 | |||||||||||||||||||
STOCKHOLDERS' EQUITY | |||||||||||||||||||||||
Common stock, $1 par value, authorized 20,000,000 shares; issued and outstanding, 13,562,980 shares in 2014 and 13,306,027 shares in 2013 | 13,563 | 13,306 | 13,563 | 13,306 | |||||||||||||||||||
Additional paid-in capital | 106,672 | 99,309 | 106,672 | 99,309 | |||||||||||||||||||
Accumulated other comprehensive income | 81,662 | [1] | 59,010 | [1] | 81,662 | [1] | 59,010 | [1] | 47,752 | [1] | |||||||||||||
Retained earnings | 300,989 | 283,585 | 300,989 | 283,585 | |||||||||||||||||||
Total stockholders' equity | 502,886 | 455,210 | 502,886 | 455,210 | 401,209 | 352,341 | |||||||||||||||||
Total liabilities and stockholders' equity | 1,497,820 | 1,374,501 | 1,497,820 | 1,374,501 | |||||||||||||||||||
REVENUES | |||||||||||||||||||||||
Investment loss | 46,465 | 43,022 | 44,145 | ||||||||||||||||||||
Total revenues | 149,844 | [2] | 150,659 | [2] | 147,733 | [2] | 146,231 | [2] | 151,683 | [2] | 143,552 | [2] | 138,466 | [2] | 134,284 | [2] | 594,467 | 567,985 | 511,842 | ||||
Other expenses | 2,377 | 2,115 | 2,097 | ||||||||||||||||||||
Income Tax Expense (Benefit) | 7,711 | -346 | -744 | 4,294 | 6,996 | 2,365 | 1,737 | 6,236 | 10,915 | 17,334 | 13,667 | ||||||||||||
Net income | 16,154 | 2,229 | 1,014 | 10,595 | 15,835 | 7,199 | 6,212 | 14,273 | 29,992 | 43,519 | 37,966 | ||||||||||||
Condensed Statements of Comprehensive Income [Abstract] | |||||||||||||||||||||||
Net income | 16,154 | 2,229 | 1,014 | 10,595 | 15,835 | 7,199 | 6,212 | 14,273 | 29,992 | 43,519 | 37,966 | ||||||||||||
OTHER COMPREHENSIVE INCOME (LOSS) | |||||||||||||||||||||||
Change in unrealized holding gains (losses) on investment securities, net of deferred income taxes | 34,663 | -15,582 | 23,863 | ||||||||||||||||||||
Reclassification adjustment for realized investment gains included in net income, net of income taxes | -4,677 | -5,848 | -5,211 | ||||||||||||||||||||
Reclassification adjustment for amounts amortized into net periodic pension and postretirement benefit cost (income), net of deferred income taxes: | |||||||||||||||||||||||
Net actuarial loss | 375 | 1,882 | 2,108 | ||||||||||||||||||||
Prior service credit | -2,149 | -460 | -344 | ||||||||||||||||||||
Total reclassification adjustment associated with affiliate's pension and postretirement benefit plans | -1,774 | 1,422 | 1,764 | ||||||||||||||||||||
Change in funded status of affiliate's pension and postretirement benefit plans, net of deferred income taxes: | |||||||||||||||||||||||
Net actuarial gain (loss) | -5,525 | 13,718 | -736 | ||||||||||||||||||||
Prior service (cost) credit | -35 | 17,548 | 732 | ||||||||||||||||||||
Total change in funded status of affiliate's pension and postretirement benefit plans | -5,560 | 31,266 | -4 | ||||||||||||||||||||
Other comprehensive income | 22,652 | [1] | 11,258 | [1] | 20,412 | ||||||||||||||||||
Total comprehensive income | 52,644 | 54,777 | 58,378 | ||||||||||||||||||||
Condensed Statements of Cash Flows [Abstract] | |||||||||||||||||||||||
Net cash provided by (used in) operating activities | 91,815 | 86,833 | 55,038 | ||||||||||||||||||||
Cash flows from investing activities | |||||||||||||||||||||||
Net (purchases) sales of short-term investments | 2,904 | -2,786 | -10,790 | ||||||||||||||||||||
Net cash (used in) provided by investing activities | -86,578 | -85,953 | -45,213 | ||||||||||||||||||||
Cash flows from financing activities | |||||||||||||||||||||||
Issuance of common stock through affiliatebs stock plans | 7,392 | 10,208 | 692 | ||||||||||||||||||||
Excess tax benefit associated with affiliatebs stock plans | 103 | 96 | -3 | ||||||||||||||||||||
Dividends paid to stockholders (affiliated $(7,377), $(6,749) and $(6,357)) | -12,588 | -11,275 | -10,439 | ||||||||||||||||||||
Net cash used in financing activities | -5,093 | -971 | -9,750 | ||||||||||||||||||||
Net increase (decrease) in cash | 144 | -91 | 75 | ||||||||||||||||||||
Cash at the beginning of the year | 239 | 330 | 239 | 330 | 255 | ||||||||||||||||||
Cash at the end of the year | 383 | 239 | 383 | 239 | 330 | ||||||||||||||||||
Income taxes recovered | -8,703 | -13,714 | -3,514 | ||||||||||||||||||||
Interest paid | 384 | 900 | 900 | ||||||||||||||||||||
Parent company [Member] | |||||||||||||||||||||||
ASSETS | |||||||||||||||||||||||
Investment in common stock of subsidiaries (equity method) | 495,288 | 441,984 | 495,288 | 441,984 | |||||||||||||||||||
Short-term investments | 6,731 | 12,687 | 6,731 | 12,687 | |||||||||||||||||||
Cash | 274 | 149 | 274 | 149 | 291 | ||||||||||||||||||
Prepaid assets | 87 | 67 | 87 | 67 | |||||||||||||||||||
Accounts receivable | 69 | 0 | 69 | 0 | |||||||||||||||||||
Income taxes recoverable | 559 | 481 | 559 | 481 | |||||||||||||||||||
Total assets | 503,008 | 455,368 | 503,008 | 455,368 | |||||||||||||||||||
LIABILITIES | |||||||||||||||||||||||
Accounts payable | 80 | 101 | 80 | 101 | |||||||||||||||||||
Amounts due affiliate to settle inter-company transaction balances | 42 | 57 | 42 | 57 | |||||||||||||||||||
Total liabilities | 122 | 158 | 122 | 158 | |||||||||||||||||||
STOCKHOLDERS' EQUITY | |||||||||||||||||||||||
Common stock, $1 par value, authorized 20,000,000 shares; issued and outstanding, 13,562,980 shares in 2014 and 13,306,027 shares in 2013 | 13,563 | 13,306 | 13,563 | 13,306 | |||||||||||||||||||
Additional paid-in capital | 106,672 | 99,309 | 106,672 | 99,309 | |||||||||||||||||||
Accumulated other comprehensive income | 81,662 | 59,010 | 81,662 | 59,010 | |||||||||||||||||||
Retained earnings | 300,989 | 283,585 | 300,989 | 283,585 | |||||||||||||||||||
Total stockholders' equity | 502,886 | 455,210 | 502,886 | 455,210 | |||||||||||||||||||
Total liabilities and stockholders' equity | 503,008 | 455,368 | 503,008 | 455,368 | |||||||||||||||||||
REVENUES | |||||||||||||||||||||||
Dividends received from subsidiaries | 378 | 9,974 | 12,050 | ||||||||||||||||||||
Investment loss | -12 | -10 | -10 | ||||||||||||||||||||
Total revenues | 366 | 9,964 | 12,040 | ||||||||||||||||||||
Other expenses | 1,584 | 1,364 | 1,299 | ||||||||||||||||||||
Income (loss) before income tax benefit and equity in undistributed net income of subsidiaries | -1,218 | 8,600 | 10,741 | ||||||||||||||||||||
Income Tax Expense (Benefit) | -558 | -481 | -462 | ||||||||||||||||||||
Income (loss) before equity in undistributed net income of subsidiaries | -660 | 9,081 | 11,203 | ||||||||||||||||||||
Equity in undistributed net income of subsidiaries | 30,652 | 34,438 | 26,763 | ||||||||||||||||||||
Net income | 29,992 | 43,519 | 37,966 | ||||||||||||||||||||
Condensed Statements of Comprehensive Income [Abstract] | |||||||||||||||||||||||
Net income | 29,992 | 43,519 | 37,966 | ||||||||||||||||||||
OTHER COMPREHENSIVE INCOME (LOSS) | |||||||||||||||||||||||
Change in unrealized holding gains (losses) on investment securities, net of deferred income taxes | 34,663 | -15,582 | 23,863 | ||||||||||||||||||||
Reclassification adjustment for realized investment gains included in net income, net of income taxes | -4,677 | -5,848 | -5,211 | ||||||||||||||||||||
Reclassification adjustment for amounts amortized into net periodic pension and postretirement benefit cost (income), net of deferred income taxes: | |||||||||||||||||||||||
Net actuarial loss | 375 | 1,882 | 2,108 | ||||||||||||||||||||
Prior service credit | -2,149 | -460 | -344 | ||||||||||||||||||||
Total reclassification adjustment associated with affiliate's pension and postretirement benefit plans | -1,774 | 1,422 | 1,764 | ||||||||||||||||||||
Change in funded status of affiliate's pension and postretirement benefit plans, net of deferred income taxes: | |||||||||||||||||||||||
Net actuarial gain (loss) | -5,525 | 13,718 | -736 | ||||||||||||||||||||
Prior service (cost) credit | -35 | 17,548 | 732 | ||||||||||||||||||||
Total change in funded status of affiliate's pension and postretirement benefit plans | -5,560 | 31,266 | -4 | ||||||||||||||||||||
Other comprehensive income | 22,652 | [1] | 11,258 | 20,412 | |||||||||||||||||||
Total comprehensive income | 52,644 | 54,777 | 58,378 | ||||||||||||||||||||
Condensed Statements of Cash Flows [Abstract] | |||||||||||||||||||||||
Net cash provided by (used in) operating activities | -738 | 9,544 | 11,117 | ||||||||||||||||||||
Cash flows from investing activities | |||||||||||||||||||||||
Net (purchases) sales of short-term investments | 5,956 | -8,715 | -1,198 | ||||||||||||||||||||
Net cash (used in) provided by investing activities | 5,956 | -8,715 | -1,198 | ||||||||||||||||||||
Cash flows from financing activities | |||||||||||||||||||||||
Issuance of common stock through affiliatebs stock plans | 7,392 | 10,208 | 692 | ||||||||||||||||||||
Excess tax benefit associated with affiliatebs stock plans | 103 | 96 | -3 | ||||||||||||||||||||
Dividends paid to stockholders (affiliated $(7,377), $(6,749) and $(6,357)) | -12,588 | -11,275 | -10,439 | ||||||||||||||||||||
Net cash used in financing activities | -5,093 | -971 | -9,750 | ||||||||||||||||||||
Net increase (decrease) in cash | 125 | -142 | 169 | ||||||||||||||||||||
Cash at the beginning of the year | 149 | 291 | 149 | 291 | 122 | ||||||||||||||||||
Cash at the end of the year | 274 | 149 | 274 | 149 | 291 | ||||||||||||||||||
Income taxes recovered | 481 | 0 | 471 | ||||||||||||||||||||
Interest paid | $0 | $0 | $0 | ||||||||||||||||||||
[1] | All amounts are net of tax. Amounts in parentheses indicate debits. | ||||||||||||||||||||||
[2] | Amounts include the reclassification of foreign currency exchange rate gains (losses) to other income in the consolidated financial statements. Prior to the fourth quarter of 2014, these amounts were reported as a component of other expenses. |
Schedule_II_Condensed_Financia2
Schedule II - Condensed Financial Information of Registrant, Parenthetical (Details) (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Condensed Balance Sheets [Abstract] | |||
Common stock, par value (in dollars per share) | $1 | $1 | |
Common stock, shares authorized (in shares) | 20,000,000 | 20,000,000 | |
Common stock, shares issued (in shares) | 13,562,980 | 13,306,027 | |
Common stock, shares outstanding (in shares) | 13,562,980 | 13,306,027 | |
Condensed Statements of Income [Abstract] | |||
Operating expense, affiliated | $1,570 | $1,356 | $2,097 |
Condensed Statements of Cash Flows [Abstract] | |||
Dividends paid to stockholders, affiliated | -7,377 | -6,749 | -6,357 |
Parent company [Member] | |||
Condensed Balance Sheets [Abstract] | |||
Common stock, par value (in dollars per share) | $1 | $1 | |
Common stock, shares authorized (in shares) | 20,000,000 | 20,000,000 | |
Common stock, shares issued (in shares) | 13,562,980 | 13,306,027 | |
Common stock, shares outstanding (in shares) | 13,562,980 | 13,306,027 | |
Condensed Statements of Income [Abstract] | |||
Operating expense, affiliated | 777 | 605 | 584 |
Condensed Statements of Cash Flows [Abstract] | |||
Dividends paid to stockholders, affiliated | ($7,377) | ($6,749) | ($6,357) |
Schedule_III_Supplementary_Ins1
Schedule III - Supplementary Insurance Information (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Supplementary Insurance Information, by Segment [Line Items] | |||
Deferred policy acquisition costs | $39,343 | $37,792 | $34,426 |
Loss and settlement expense reserves | 661,309 | 610,181 | 583,097 |
Unearned premiums | 232,093 | 220,627 | 196,215 |
Premium revenue | 540,722 | 515,506 | 458,846 |
Net investment income | 46,465 | 43,022 | 44,145 |
Losses and settlement expenses incurred | 385,474 | 333,287 | 303,388 |
Amortization of deferred policy acquisition costs | 99,042 | 94,728 | 84,275 |
Other underwriting expenses | 56,826 | 65,754 | 60,919 |
Premiums written | 552,610 | 534,077 | 478,481 |
Property and casualty insurance [Member] | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
Deferred policy acquisition costs | 33,855 | 32,740 | 30,872 |
Loss and settlement expense reserves | 463,458 | 425,758 | 412,317 |
Unearned premiums | 204,357 | 191,714 | 177,618 |
Premium revenue | 422,381 | 392,719 | 357,139 |
Net investment income | 33,509 | 31,397 | 32,214 |
Losses and settlement expenses incurred | 298,033 | 260,917 | 233,892 |
Amortization of deferred policy acquisition costs | 72,768 | 68,851 | 63,641 |
Other underwriting expenses | 54,385 | 62,522 | 59,183 |
Premiums written | 433,707 | 405,049 | 371,235 |
Reinsurance [Member] | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
Deferred policy acquisition costs | 5,488 | 5,052 | 3,554 |
Loss and settlement expense reserves | 197,851 | 184,423 | 170,780 |
Unearned premiums | 27,736 | 28,913 | 18,597 |
Premium revenue | 118,341 | 122,787 | 101,707 |
Net investment income | 12,968 | 11,635 | 11,941 |
Losses and settlement expenses incurred | 87,441 | 72,370 | 69,496 |
Amortization of deferred policy acquisition costs | 26,274 | 25,877 | 20,634 |
Other underwriting expenses | 2,441 | 3,232 | 1,736 |
Premiums written | 118,903 | 129,028 | 107,246 |
Parent company [Member] | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
Deferred policy acquisition costs | 0 | 0 | 0 |
Loss and settlement expense reserves | 0 | 0 | 0 |
Unearned premiums | 0 | 0 | 0 |
Premium revenue | 0 | 0 | 0 |
Net investment income | -12 | -10 | -10 |
Losses and settlement expenses incurred | 0 | 0 | 0 |
Amortization of deferred policy acquisition costs | 0 | 0 | 0 |
Other underwriting expenses | 0 | 0 | 0 |
Premiums written | $0 | $0 | $0 |
Schedule_IV_Reinsurance_Detail
Schedule IV - Reinsurance (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Consolidated earned premiums [Abstract] | |||
Gross amount | $372,658 | $361,010 | $328,227 |
Ceded to other companies | 423,602 | 413,422 | 368,870 |
Assumed from other companies | 591,666 | 567,918 | 499,489 |
Net amount | $540,722 | $515,506 | $458,846 |
Percentage of amount assumed to net | 109.40% | 110.20% | 108.90% |
Schedule_VI_Supplemental_Infor1
Schedule VI - Supplemental Information Concerning Property-Casualty Insurance Operations (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Supplemental Information for Property, Casualty Insurance Underwriters [Abstract] | |||
Deferred policy acquisition costs | $39,343 | $37,792 | $34,426 |
Reserves for losses and settlement expenses | 661,309 | 610,181 | 583,097 |
Discount, if any, deducted from reserves | 0 | 0 | 0 |
Unearned premiums | 232,093 | 220,627 | 196,215 |
Earned premiums | 540,722 | 515,506 | 458,846 |
Net investment income | 46,477 | 43,032 | 44,155 |
Losses and settlement expenses incurred related to current year | 406,266 | 346,072 | 329,121 |
Losses and settlement expenses incurred related to prior years | -20,792 | -12,785 | -25,733 |
Amortization of deferred policy acquisition costs | 99,042 | 94,728 | 84,275 |
Paid losses and settlement expenses | 330,087 | 305,266 | 308,137 |
Premiums written | $552,610 | $534,077 | $478,481 |