Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2018 | Oct. 31, 2018 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | EMC INSURANCE GROUP INC. | |
Entity Central Index Key | 356,130 | |
Current Fiscal Year End Date | --12-31 | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 21,611,374 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2018 |
CONSOLIDATED BALANCE SHEETS (Un
CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Investments: | ||
Fixed maturity securities available-for-sale, at fair value (amortized cost $1,264,975 and $1,253,166) | $ 1,248,072 | $ 1,275,016 |
Equity investments, at fair value (cost $155,734 and $144,274) | 238,768 | |
Equity investments, at fair value (cost $155,734 and $144,274) | 228,115 | |
Equity investments, at alternative measurement of cost less impairments | 1,200 | 0 |
Other long-term investments | 17,818 | 13,648 |
Short-term investments | 33,717 | 23,613 |
Total investments | 1,539,575 | 1,540,392 |
Cash | 302 | 347 |
Reinsurance receivables due from affiliate | 33,448 | 31,650 |
Prepaid reinsurance premiums due from affiliate | 12,470 | 12,789 |
Deferred policy acquisition costs (affiliated $47,323 and $40,848) | 47,653 | 41,114 |
Amounts due from affiliate to settle inter-company transaction balances | 8,067 | 0 |
Prepaid pension and postretirement benefits due from affiliate | 22,769 | 20,683 |
Accrued investment income | 11,714 | 11,286 |
Amounts receivable under reverse repurchase agreements | 16,500 | 16,500 |
Accounts receivable | 1,103 | 1,604 |
Income taxes recoverable | 1,531 | 0 |
Goodwill | 942 | 942 |
Other assets (affiliated $4,706 and $4,423) | 5,028 | 4,633 |
Total assets | 1,701,102 | 1,681,940 |
LIABILITIES | ||
Losses and settlement expenses (affiliated $756,751 and $726,413) | 761,581 | 732,612 |
Unearned premiums (affiliated $291,464 and $256,434) | 292,983 | 257,797 |
Other policyholders' funds (all affiliated) | 9,145 | 10,013 |
Surplus notes payable to affiliate | 25,000 | 25,000 |
Amounts due affiliate to settle inter-company transaction balances | 0 | 367 |
Pension benefits payable to affiliate | 4,111 | 4,185 |
Income taxes payable | 0 | 544 |
Deferred income taxes | 7,090 | 15,020 |
Other liabilities (affiliated $26,440 and $27,520) | 26,584 | 32,556 |
Total liabilities | 1,126,494 | 1,078,094 |
STOCKHOLDERS' EQUITY | ||
Common stock, $1 par value, authorized 30,000,000 shares; issued and outstanding, 21,575,286 shares in 2018 and 21,455,545 shares in 2017 | 21,575 | 21,455 |
Additional paid-in capital | 127,520 | 124,556 |
Accumulated other comprehensive income (loss) | (15,082) | 83,384 |
Retained earnings | 440,595 | 374,451 |
Total stockholders' equity | 574,608 | 603,846 |
Total liabilities and stockholders' equity | $ 1,701,102 | $ 1,681,940 |
CONSOLIDATED BALANCE SHEETS (_2
CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Investments: | ||
Fixed maturity securities available-for-sale, amortized cost | $ 1,264,975 | $ 1,253,166 |
Equity investments, cost | 155,734 | |
Equity investments, cost | 144,274 | |
Deferred policy acquisition costs from affiliates | 47,323 | 40,848 |
Affiliated other assets | 4,706 | 4,423 |
LIABILITIES | ||
Affiliated losses and settlement expenses | 756,751 | 726,413 |
Unearned premiums from affiliates | 291,464 | 256,434 |
Affiliated other liabilities | $ 26,440 | $ 27,520 |
STOCKHOLDERS' EQUITY | ||
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, shares authorized (in shares) | 30,000,000 | 30,000,000 |
Common stock, shares issued (in shares) | 21,575,286 | 21,455,545 |
Common stock, shares outstanding (in shares) | 21,575,286 | 21,455,545 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
REVENUES | ||||
Premiums earned (affiliated $162,422, $154,451, $473,382 and $446,522) | $ 163,708 | $ 155,190 | $ 477,440 | $ 449,514 |
Net investment income | 11,951 | 11,501 | 35,100 | 33,679 |
Net realized investment gains (losses) and, beginning in 2018, change in unrealized investment gains on equity investments | 11,135 | (594) | (118) | 2,166 |
Other income (affiliated $2,239, $1,248, $6,402 and $3,484) | 2,331 | 1,099 | 6,719 | 3,000 |
Total revenues | 189,125 | 167,196 | 519,141 | 488,359 |
LOSSES AND EXPENSES | ||||
Losses and settlement expenses (affiliated $109,040, $116,908, $338,729 and $318,902) | 111,277 | 119,576 | 340,996 | 323,089 |
Dividends to policyholders (all affiliated) | 2,654 | 46 | 7,160 | 5,184 |
Amortization of deferred policy acquisition costs (affiliated $28,395, $26,177, $84,434 and $79,957) | 28,783 | 26,430 | 85,504 | 80,774 |
Other underwriting expenses (affiliated $20,925, $20,798, $66,303 and $61,637) | 20,924 | 20,799 | 66,230 | 61,566 |
Interest expense (all affiliated) | 170 | 84 | 483 | 253 |
Other expenses (affiliated $477, $442, $1,461 and $1,423) | 873 | 701 | 2,574 | 2,264 |
Total losses and expenses | 164,681 | 167,636 | 502,947 | 473,130 |
Income (loss) before income tax expense (benefit) | 24,444 | (440) | 16,194 | 15,229 |
INCOME TAX EXPENSE (BENEFIT) | ||||
Current | 3,584 | (2,197) | 1,479 | 1,918 |
Deferred | 1,712 | 1,011 | 638 | 257 |
Total income tax expense (benefit) | 5,296 | (1,186) | 2,117 | 2,175 |
Net income | $ 19,148 | $ 746 | $ 14,077 | $ 13,054 |
Net income per common share - basic and diluted | $ 0.89 | $ 0.03 | $ 0.65 | $ 0.61 |
Dividend per common share | $ 0.22 | $ 0.21 | $ 0.66 | $ 0.63 |
Average number of common shares outstanding - basic and diluted (in shares) | 21,556,557 | 21,356,588 | 21,529,394 | 21,295,882 |
CONSOLIDATED STATEMENTS OF IN_2
CONSOLIDATED STATEMENTS OF INCOME (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
REVENUES | ||||
Premiums earned, affiliated | $ 162,422 | $ 154,451 | $ 473,382 | $ 446,522 |
Other income, affiliated | 2,239 | 1,248 | 6,402 | 3,484 |
LOSSES AND EXPENSES | ||||
Losses and settlement expenses, affiliated | 109,040 | 116,908 | 338,729 | 318,902 |
Amortization of deferred policy acquisition costs, affiliated | 28,395 | 26,177 | 84,434 | 79,957 |
Other underwriting expenses, affiliated | 20,925 | 20,798 | 66,303 | 61,637 |
Other expense, affiliated | $ 477 | $ 442 | $ 1,461 | $ 1,423 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Net income | $ 19,148 | $ 746 | $ 14,077 | $ 13,054 |
OTHER COMPREHENSIVE INCOME (LOSS) | ||||
Unrealized holding gains (losses) on investment securities not reflected in net income, net of deferred income tax expense (benefit) of $(2,488), $2,951, $(9,544) and $12,632 | (9,357) | 5,481 | (35,903) | 23,460 |
Reclassification adjustment for net realized investment (gains) losses included in net income (loss), net of income tax (expense) benefit of $202, $(141), $1,406 and $(2,368) | 758 | (264) | 5,288 | (4,399) |
Reclassification adjustment for amounts amortized into net periodic pension and postretirement benefit income, net of deferred income tax expense of $(143), $(146), $(430) and $(439): | ||||
Net actuarial loss | 84 | 240 | 250 | 719 |
Prior service credit | (623) | (511) | (1,867) | (1,535) |
Total reclassification adjustment associated with affiliate's pension and postretirement benefit plans | (539) | (271) | (1,617) | (816) |
Other comprehensive income (loss) | (9,138) | 4,946 | (32,232) | 18,245 |
Total comprehensive income (loss) | $ 10,010 | $ 5,692 | $ (18,155) | $ 31,299 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
OTHER COMPREHENSIVE INCOME (LOSS) | ||||
Unrealized holding gains (losses) on investment securities, deferred income tax expense (benefit) | $ (2,488) | $ 2,951 | $ (9,544) | $ 12,632 |
Reclassification adjustment for net realized investment (gains) losses included in net income (loss), income tax (expense) benefit | 202 | (141) | 1,406 | (2,368) |
Reclassification adjustment for amounts amortized into net periodic pension and postretirement benefit cost (income), deferred income tax (expense) benefit | $ (143) | $ (146) | $ (430) | $ (439) |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Retained Earnings [Member] |
Balance at Dec. 31, 2016 | $ 553,342 | $ 21,223 | $ 119,054 | $ 46,081 | $ 366,984 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock through stock plans | 5,553 | 225 | 5,328 | ||
Repurchase of common stock | (1,858) | (68) | (1,790) | ||
Increase resulting from stock-based compensation expense | 48 | 48 | |||
Other comprehensive income (loss) | 18,245 | 18,245 | |||
Net income | 13,054 | 13,054 | |||
Dividends paid to public stockholders | (5,906) | (5,906) | |||
Dividends paid to affiliate | (7,416) | (7,416) | |||
Balance at Sep. 30, 2017 | 575,062 | 21,380 | 122,640 | 64,326 | 366,716 |
Balance at Dec. 31, 2017 | 603,846 | 21,455 | 124,556 | 83,384 | 374,451 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock through stock plans | 4,478 | 176 | 4,302 | ||
Repurchase of common stock | (1,455) | (56) | (1,399) | ||
Increase resulting from stock-based compensation expense | 61 | 61 | |||
Other comprehensive income (loss) | (32,232) | (32,232) | |||
Net income | 14,077 | 14,077 | |||
Dividends paid to public stockholders | (6,398) | (6,398) | |||
Dividends paid to affiliate | (7,769) | (7,769) | |||
Balance at Sep. 30, 2018 | 574,608 | $ 21,575 | $ 127,520 | (15,082) | 440,595 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Cumulative adjustment for adoption of financial instruments recognition and measurement changes | $ 0 | $ (66,234) | $ 66,234 |
CONSOLIDATED STATEMENT OF STOCK
CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (Unaudited) (Parenthetical) - $ / shares | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Statement of Stockholders' Equity [Abstract] | ||
Dividends paid to public stockholders (per share) | $ 0.66 | $ 0.63 |
Dividends paid to affiliate (per share) | $ 0.66 | $ 0.63 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | $ 14,077 | $ 13,054 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Losses and settlement expenses (affiliated $30,338 and $35,368) | 28,969 | 35,929 |
Unearned premiums (affiliated $35,030 and $37,373) | 35,186 | 37,558 |
Other policyholders' funds due to affiliate | (868) | (3,221) |
Amounts due to/from affiliate to settle inter-company transaction balances | (8,434) | (15,432) |
Net pension and postretirement benefits due from affiliate | (4,207) | (638) |
Reinsurance receivables due from affiliate | (1,798) | (4,753) |
Prepaid reinsurance premiums due from affiliate | 319 | (6,450) |
Commissions payable (affiliated $(2,190) and $(2,309)) | (2,121) | (2,318) |
Deferred policy acquisition costs (affiliated $(6,475) and $(3,176)) | (6,539) | (3,171) |
Accrued investment income | (428) | (913) |
Current income tax | (2,075) | (6,209) |
Deferred income tax | 638 | 257 |
Net realized investment gains (losses) and, beginning in 2018, change in unrealized investment gains on equity investments | 118 | (2,166) |
Other, net (affiliated $888 and $(1,545)) | 7,859 | 8,596 |
Total adjustments to reconcile net income to net cash provided by operating activities | 46,619 | 37,069 |
Net cash provided by operating activities | 60,696 | 50,123 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Purchases of fixed maturity securities available-for-sale | (248,571) | (174,579) |
Disposals of fixed maturity securities available-for-sale | 218,525 | 121,463 |
Purchases of equity investments | (57,558) | |
Purchases of equity investments | (43,868) | |
Disposals of equity investments | 52,052 | |
Disposals of equity investments | 49,595 | |
Purchases of other long-term investments | (7,305) | (12,231) |
Disposals of other long-term investments | 3,364 | 1,304 |
Net (purchases) disposals of short-term investments | (10,104) | 14,415 |
Net receipts under reverse repurchase agreements | 0 | 3,500 |
Net cash used in investing activities | (49,597) | (40,401) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Issuance of common stock through affiliate’s stock plans | 4,478 | 5,553 |
Repurchase of common stock | (1,455) | (1,858) |
Dividends paid to stockholders (affiliated $(7,769) and $(7,416)) | (14,167) | (13,322) |
Net cash used in financing activities | (11,144) | (9,627) |
NET INCREASE (DECREASE) IN CASH | (45) | 95 |
Cash at the beginning of the year | 347 | 307 |
Cash at the end of the quarter | $ 302 | $ 402 |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Losses and settlement expenses, affiliated | $ 30,338 | $ 35,368 |
Unearned premiums, affiliated | 35,030 | 37,373 |
Commissions payable, affiliated | (2,190) | (2,309) |
Deferred policy acquisition costs, affiliated | (6,475) | (3,176) |
Other, net, affiliated | 888 | (1,545) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Dividends paid to stockholders, affiliated | $ (7,769) | $ (7,416) |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 9 Months Ended |
Sep. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION 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 writes property and casualty insurance in both commercial and personal lines of insurance, with a focus on medium-sized commercial accounts. The term “Company” is used interchangeably to describe EMC Insurance Group Inc. (Parent Company only) and EMC Insurance Group Inc. and its subsidiaries. The accompanying unaudited consolidated financial statements have been prepared on the basis of U.S. generally accepted accounting principles (GAAP) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. The Company has evaluated all subsequent events through the date the financial statements were issued. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation of the interim financial statements have been included. The results of operations for the interim periods reported are not necessarily indicative of results to be expected for the year. The consolidated balance sheet at December 31, 2017 has been derived from the audited financial statements at that date, but does not include all of the information and notes required by GAAP for complete financial statements. In reading these financial statements, reference should be made to the Company’s 2017 Form 10-K or the 2017 Annual Report to Stockholders for more detailed footnote information. Accounting Pronouncements Adopted In January 2016, the Financial Accounting Standards Board (FASB) updated its guidance related to Financial Instruments-Overall Subtopic 825-10 of the Accounting Standards Codification TM (Codification or ASC). The objective of this update is to enhance the reporting model for financial instruments to provide financial statement users with more decision-useful information. The major change in reporting from this update is a requirement that equity investments (excluding those accounted for under the equity method of accounting or those that are consolidated) be measured at fair value, with changes in fair value recognized in net income. Equity investments that do not have a readily determinable fair value may be measured at estimated fair value or cost less impairment. All of the Company's common and preferred stock equity investments were already measured at fair value, as they were classified as available-for-sale with changes in fair value recognized in other comprehensive income (excludes those investments that were consolidated and those that were accounted for under the equity method of accounting). The Company adopted this guidance on January 1, 2018, recording a cumulative-effect adjustment that moved $66.2 million from accumulated other comprehensive income to retained earnings, which is the amount of net unrealized investment gains on available-for-sale equity securities as of December 31, 2017, net of deferred income taxes. Management uses the equity method of accounting for a few holdings in privately placed common and non-redeemable convertible preferred stock investments in start-up technology companies with ties to the insurance industry, as well as for an investment company limited partnership in which the Company has a minor ownership interest (these investments are classified as other long-term investments). In connection with the adoption of this new guidance, beginning January 1, 2018, the equity adjustments for these investments are being reported as realized investment gains and losses from other long-term investments, rather than net investment income. In March 2017, the FASB issued updated guidance in Compensation-Retirement Benefits Topic 715 of the ASC. The objective of this update is to improve the presentation of net periodic pension and postretirement benefit costs by disaggregating the components of these expenses (disclosing the service cost component separately from the other components) for income statement reporting, if a subtotal of income from operations is presented. The Company does not report a subtotal of income from operations in its financial statements. Also included in this update is a prohibition against including components of the net periodic pension and postretirement benefit costs, other than the service cost component, in any capitalized assets. In conjunction with the adoption of this updated guidance, management elected to report all components of net periodic pension and postretirement benefit income, other than the service cost component, as other income in the consolidated statements of income. The service cost component continues to be reported in other underwriting expenses. This change in reporting was applied retrospectively for comparison purposes and did not impact the net income amounts reported, as other income and other underwriting expenses increased by the same amount ( $1.9 million and $1.3 million for the three months and $5.6 million and $3.8 million for the nine months ended September 30, 2018 and 2017 , respectively). The prohibition against including net periodic pension and postretirement benefit costs, other than the service cost component, in capitalized assets was adopted prospectively on January 1, 2018. The impact of the exclusion of these costs from capitalized assets resulted in a negligible impact on the deferred policy acquisition cost asset calculation at September 30, 2018 compared to that which would have been calculated previously. In August 2018, the FASB issued updated guidance related to Fair Value Measurement Topic 820 of the ASC. The objective of this update is to improve the effectiveness of disclosures in the notes to financial statements as part of the FASB's disclosure framework project. As it relates to the Company's footnote disclosures, this update removes disclosure of the amount of, and reasons for, transfers between Level 1 and Level 2 of the fair value hierarchy, as well as the policy for timing of transfers between levels, but adds disclosure of the amount of unrealized gains and losses included in other comprehensive income for recurring Level 3 fair value measurements still held at the end of the reporting period. The Company adopted these disclosure modifications during the third quarter of 2018. |
TRANSACTIONS WITH AFFILIATES
TRANSACTIONS WITH AFFILIATES | 9 Months Ended |
Sep. 30, 2018 | |
Related Party Transactions [Abstract] | |
TRANSACTIONS WITH AFFILIATES | TRANSACTIONS WITH AFFILIATES An inter-company reinsurance program is in place between the Company's insurance subsidiaries in the property and casualty insurance segment and Employers Mutual. This reinsurance program is intended to reduce the volatility of the Company's quarterly results caused by excessive catastrophe and storm losses, and provide protection from both the frequency and severity of such losses. The reinsurance program consists of two semi-annual aggregate catastrophe excess of loss treaties. The first treaty is effective from January 1, 2018 through June 30, 2018, and has a retention of $22.0 million and a limit of $24.0 million . The total cost of this treaty is approximately $6.0 million . The second treaty is effective from July 1, 2018 through December 31, 2018, and has a retention of $15.0 million and a limit of $12.0 million . The total cost of this treaty is approximately $1.4 million . The terms of these treaties were the same in 2017, with the exception of the retention amount contained in the treaty covering the first half of the year, which was $20.0 million . Losses and settlement expenses ceded to Employers Mutual under the inter-company reinsurance program totaled $2.4 million and $3.2 million for the three and nine months ended September 30, 2018 , respectively, compared to $3.5 million and $20.1 million for the same periods in 2017. All catastrophe and storm losses assumed by the property and casualty insurance subsidiaries (net of applicable reinsurance recoveries from external reinsurance protections purchased by the pool participants) are subject to the terms of these treaties, and there is no co-participation provision. An inter-company reinsurance program is also in place between the Company's reinsurance subsidiary and Employers Mutual. The reinsurance program consists of two treaties. The first is a per occurrence catastrophe excess of loss treaty with a retention of $10.0 million , a limit of $10.0 million , 20 percent co-participation, and no reinstatement. The total cost of this treaty is approximately $1.6 million . The second is an annual aggregate catastrophe excess of loss treaty with a retention of $20.0 million , a limit of $100.0 million , and 20 percent co-participation. The total cost of this treaty is approximately $3.6 million . Any losses recovered under the per occurrence treaty inure to the benefit of the aggregate treaty, and only catastrophic events with total losses greater than $500,000 are subject to the terms of the aggregate treaty. The terms of the program were the same in 2017 with the exception of the costs, which were $1.7 million for the per occurrence treaty and $3.2 million for the annual aggregate treaty. Losses and settlement expenses ceded to Employers Mutual under the inter-company reinsurance program totaled a negative $1.9 million and a negative $2.4 million for the three and nine months ended September 30, 2018 , respectively, compared to $9.0 million and $9.0 million for the three and nine months ended September 30, 2017 respectively. The negative amounts reported for the three and nine months ended September 30, 2018 reflect Industry Loss Warranty recoveries associated with 2017 catastrophes. The reinsurance segment retains 20 percent of these recoveries under the co-participation provision, with the remainder ceded to Employers Mutual. |
REINSURANCE
REINSURANCE | 9 Months Ended |
Sep. 30, 2018 | |
Reinsurance Disclosures [Abstract] | |
REINSURANCE | REINSURANCE The effect of reinsurance on premiums written and earned, and losses and settlement expenses incurred, for the three and nine months ended September 30, 2018 and 2017 is presented below. The classification of the assumed and ceded reinsurance amounts between affiliates and nonaffiliates is based on the participants in the underlying reinsurance agreements, and is intended to provide an understanding of the actual source of the reinsurance activities. This presentation differs from the classifications used in the consolidated financial statements, where all amounts flowing through the pooling and quota share agreements and inter-company reinsurance programs with Employers Mutual are reported as “affiliated” balances. Three months ended September 30, 2018 ($ in thousands) Property and Reinsurance Total Premiums written Direct $ 126,737 $ — $ 126,737 Assumed from nonaffiliates 1,138 42,211 43,349 Assumed from affiliates 159,648 — 159,648 Ceded to nonaffiliates (7,309 ) (1,001 ) (8,310 ) Ceded to affiliates (127,427 ) (1,312 ) (128,739 ) Net premiums written $ 152,787 $ 39,898 $ 192,685 Premiums earned Direct $ 100,850 $ — $ 100,850 Assumed from nonaffiliates 1,017 41,128 42,145 Assumed from affiliates 133,781 — 133,781 Ceded to nonaffiliates (7,895 ) (2,321 ) (10,216 ) Ceded to affiliates (101,540 ) (1,312 ) (102,852 ) Net premiums earned $ 126,213 $ 37,495 $ 163,708 Losses and settlement expenses incurred Direct $ 51,606 $ — $ 51,606 Assumed from nonaffiliates 1,039 31,378 32,417 Assumed from affiliates 87,992 311 88,303 Ceded to nonaffiliates (5,205 ) (3,774 ) (8,979 ) Ceded to affiliates (53,997 ) 1,927 (52,070 ) Net losses and settlement expenses incurred $ 81,435 $ 29,842 $ 111,277 Three months ended September 30, 2017 ($ in thousands) Property and Reinsurance Total Premiums written Direct $ 122,665 $ — $ 122,665 Assumed from nonaffiliates 1,333 38,955 40,288 Assumed from affiliates 153,900 — 153,900 Ceded to nonaffiliates (10,532 ) (1,220 ) (11,752 ) Ceded to affiliates (123,355 ) (1,212 ) (124,567 ) Net premiums written $ 144,011 $ 36,523 $ 180,534 Premiums earned Direct $ 96,547 $ — $ 96,547 Assumed from nonaffiliates 1,225 38,463 39,688 Assumed from affiliates 128,325 — 128,325 Ceded to nonaffiliates (8,388 ) (2,533 ) (10,921 ) Ceded to affiliates (97,237 ) (1,212 ) (98,449 ) Net premiums earned $ 120,472 $ 34,718 $ 155,190 Losses and settlement expenses incurred Direct $ 62,745 $ — $ 62,745 Assumed from nonaffiliates 961 57,268 58,229 Assumed from affiliates 81,047 277 81,324 Ceded to nonaffiliates (4,435 ) (3,039 ) (7,474 ) Ceded to affiliates (66,279 ) (8,969 ) (75,248 ) Net losses and settlement expenses incurred $ 74,039 $ 45,537 $ 119,576 Nine months ended September 30, 2018 ($ in thousands) Property and Reinsurance Total Premiums written Direct $ 325,360 $ — $ 325,360 Assumed from nonaffiliates 3,440 122,564 126,004 Assumed from affiliates 430,699 — 430,699 Ceded to nonaffiliates (23,232 ) (9,015 ) (32,247 ) Ceded to affiliates (332,010 ) (3,937 ) (335,947 ) Net premiums written $ 404,257 $ 109,612 $ 513,869 Premiums earned Direct $ 295,606 $ — $ 295,606 Assumed from nonaffiliates 3,319 122,577 125,896 Assumed from affiliates 394,697 — 394,697 Ceded to nonaffiliates (25,026 ) (7,540 ) (32,566 ) Ceded to affiliates (302,256 ) (3,937 ) (306,193 ) Net premiums earned $ 366,340 $ 111,100 $ 477,440 Losses and settlement expenses incurred Direct $ 165,962 $ — $ 165,962 Assumed from nonaffiliates 2,801 84,846 87,647 Assumed from affiliates 269,672 908 270,580 Ceded to nonaffiliates (10,107 ) (6,338 ) (16,445 ) Ceded to affiliates (169,137 ) 2,389 (166,748 ) Net losses and settlement expenses incurred $ 259,191 $ 81,805 $ 340,996 Nine months ended September 30, 2017 ($ in thousands) Property and Reinsurance Total Premiums written Direct $ 312,809 $ — $ 312,809 Assumed from nonaffiliates 3,542 108,056 111,598 Assumed from affiliates 415,426 — 415,426 Ceded to nonaffiliates (27,109 ) (9,074 ) (36,183 ) Ceded to affiliates (319,459 ) (3,637 ) (323,096 ) Net premiums written $ 385,209 $ 95,345 $ 480,554 Premiums earned Direct $ 287,821 $ — $ 287,821 Assumed from nonaffiliates 3,370 110,563 113,933 Assumed from affiliates 375,601 — 375,601 Ceded to nonaffiliates (22,014 ) (7,719 ) (29,733 ) Ceded to affiliates (294,471 ) (3,637 ) (298,108 ) Net premiums earned $ 350,307 $ 99,207 $ 449,514 Losses and settlement expenses incurred Direct $ 198,317 $ — $ 198,317 Assumed from nonaffiliates 2,406 104,685 107,091 Assumed from affiliates 258,169 942 259,111 Ceded to nonaffiliates (9,400 ) (4,626 ) (14,026 ) Ceded to affiliates (218,425 ) (8,979 ) (227,404 ) Net losses and settlement expenses incurred $ 231,067 $ 92,022 $ 323,089 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. • “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 1) reinsurance business that is ceded to other insurance companies in connection with “fronting” activities initiated by Employers Mutual, and 2) amounts ceded in connection with the purchase of additional reinsurance protection in peak exposure territories from external parties. • “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 and amounts ceded to Employers Mutual under the terms of the inter-company reinsurance program. For the reinsurance subsidiary this line represents amounts ceded to Employers Mutual under the terms of the inter-company reinsurance program. |
LIABILITY FOR LOSSES AND SETTLE
LIABILITY FOR LOSSES AND SETTLEMENT EXPENSES | 9 Months Ended |
Sep. 30, 2018 | |
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. Nine months ended September 30, ($ in thousands) 2018 2017 Gross reserves at beginning of year $ 732,612 $ 690,532 Re-valuation due to foreign currency exchange rates 525 (1,913 ) Less ceded reserves at beginning of year 30,923 20,664 Net reserves at beginning of year 701,164 671,781 Incurred losses and settlement expenses related to: Current year 352,992 340,706 Prior years (11,996 ) (17,617 ) Total incurred losses and settlement expenses 340,996 323,089 Paid losses and settlement expenses related to: Current year 119,399 120,053 Prior years 193,673 173,986 Total paid losses and settlement expenses 313,072 294,039 Net reserves at end of period 729,088 700,831 Plus ceded reserves at end of period 32,661 25,348 Re-valuation due to foreign currency exchange rates (168 ) 282 Gross reserves at end of period $ 761,581 $ 726,461 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. 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 net income in the year such changes are recorded. Following is an analysis of the reserve development the Company experienced during the nine months ended September 30, 2018 and 2017 . 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. 2018 Development For the property and casualty insurance segment, the September 30, 2018 estimate of loss and settlement expense reserves for accident years 2017 and prior decreased $12.5 million from the estimate at December 31, 2017 . This decrease represents 2.5 percent of the December 31, 2017 gross carried reserves and is primarily attributed to decreases in the ultimate loss and settlement expense ratios for several accident years in the other liability, commercial auto liability, surety bonds and personal auto liability lines of business. Favorable development in the other liability line of business was driven by a reduction in the expected ultimate loss and settlement expense ratios for accident years 2013 and 2015, although the ultimate settlement expense ratios for several prior years were reduced slightly as well. The ultimate loss and settlement expense ratios in the commercial auto liability line of business for accident years 2014 through 2017 were decreased as ultimate claim severities are projected to be better than initially expected. The workers' compensation, commercial property, auto physical damage and homeowners lines of business all experienced adverse development. The adverse development in the workers' compensation line of business is the result of an increase in the accident year 2017 ultimate loss and settlement expense ratio due to an initial underestimate of both ultimate frequency and severity, largely attributed to winter related slip and fall claims. For the reinsurance segment, the September 30, 2018 estimate of loss and settlement expense reserves for accident years 2017 and prior increased $493,000 from the estimate at December 31, 2017 . This increase represents 0.2 percent of the December 31, 2017 gross carried reserves and is primarily attributed to reserve strengthening mainly in the casualty and multiline excess and pro rata contracts for accident years 2007, 2012, 2014, 2015 and 2017. This adverse development was partially offset by favorable development from Industry Loss Warranty recoveries on 2017 catastrophes. 2017 Development For the property and casualty insurance segment, the September 30, 2017 estimate of loss and settlement expense reserves for accident years 2016 and prior decreased $15.6 million from the estimate at December 31, 2016 . This decrease represented 3.2 percent of the December 31, 2016 gross carried reserves and was primarily attributed to reductions in prior year ultimate loss ratios for every line of business except commercial auto liability. The other liability line of business was the largest contributor to favorable development. The ultimate loss ratios for this line were decreased slightly for most accident years from 2003 through 2016 due to declines in expected ultimate claim frequency and/or severity. Due to increases in projected ultimate claim frequency and severity, the ultimate loss ratios in the commercial auto line of business were increased for accident years 2013 through 2016, producing adverse reserve development for that line of business. Included in the development amount is adverse development experienced in the other liability line of business stemming from the settlement of claims for past and future legal fess and losses on a multi-year asbestos exposure associated with a former insured, and a slight strengthening of remaining reserves. For the reinsurance segment, the September 30, 2017 estimate of loss and settlement expense reserves for accident years 2016 and prior increased $2.1 million from the estimate at December 31, 2016 . This increase represented 1.0 percent of the December 31, 2016 gross carried reserves and was primarily attributed to prior year reserve releases in the per risk excess, property/casualty global excess and property/casualty global pro rata contract types. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 9 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION The Company’s operations consist of a property and casualty insurance segment and a reinsurance segment. The property and casualty insurance segment writes both commercial and personal lines of insurance, with a focus on medium-sized commercial accounts. The reinsurance segment provides reinsurance for other insurers and reinsurers. The segments are managed separately due to differences in the insurance products sold and the business environments in which they operate. Management evaluates the performance of its insurance segments using financial measurements based on Statutory Accounting Principles (SAP) instead of GAAP. Such measures include premiums written, premiums earned, statutory underwriting profit (loss), and investment results, as well as loss and loss adjustment expense ratios, trade underwriting expense ratios, and combined ratios. Summarized financial information for the Company’s segments is as follows: Three months ended September 30, 2018 Property and Reinsurance Parent Consolidated ($ in thousands) Premiums earned $ 126,213 $ 37,495 $ — $ 163,708 Underwriting profit (loss): SAP underwriting profit (loss) 138 (844 ) — (706 ) GAAP adjustments 378 398 — 776 GAAP underwriting profit (loss) 516 (446 ) — 70 Net investment income 8,514 3,423 14 11,951 Net realized investment gains (losses) and, beginning in 2018, change in unrealized investment gains on equity investments 6,760 4,476 (101 ) 11,135 Other income (loss) 2,184 147 — 2,331 Interest expense 170 — — 170 Other expenses 282 — 591 873 Income (loss) before income tax expense (benefit) $ 17,522 $ 7,600 $ (678 ) $ 24,444 Three months ended September 30, 2017 Property and Reinsurance Parent Consolidated ($ in thousands) Premiums earned $ 120,472 $ 34,718 $ — $ 155,190 Underwriting profit (loss): SAP underwriting profit (loss) 1,927 (18,364 ) — (16,437 ) GAAP adjustments 4,582 194 — 4,776 GAAP underwriting profit (loss) 6,509 (18,170 ) — (11,661 ) Net investment income 8,252 3,237 12 11,501 Net realized investment gains (losses) and, beginning in 2018, change in unrealized investment gains on equity investments (108 ) (486 ) — (594 ) Other income (loss) 1,457 (358 ) — 1,099 Interest expense 84 — — 84 Other expenses 170 — 531 701 Income (loss) before income tax expense (benefit) $ 15,856 $ (15,777 ) $ (519 ) $ (440 ) Nine months ended September 30, 2018 Property and Reinsurance Parent Consolidated ($ in thousands) Premiums earned $ 366,340 $ 111,100 $ — $ 477,440 Underwriting profit (loss): SAP underwriting profit (loss) (29,082 ) 4,426 — (24,656 ) GAAP adjustments 2,561 (355 ) — 2,206 GAAP underwriting profit (loss) (26,521 ) 4,071 — (22,450 ) Net investment income 25,072 10,001 27 35,100 Net realized investment gains (losses) and, beginning in 2018, change in unrealized investment gains on equity investments (1,225 ) 1,208 (101 ) (118 ) Other income (loss) 6,330 389 — 6,719 Interest expense 483 — — 483 Other expenses 759 — 1,815 2,574 Income (loss) before income tax expense (benefit) $ 2,414 $ 15,669 $ (1,889 ) $ 16,194 Assets $ 1,212,964 $ 481,047 $ 574,885 $ 2,268,896 Eliminations — — (564,796 ) (564,796 ) Reclassifications (2,880 ) — (118 ) (2,998 ) Total assets $ 1,210,084 $ 481,047 $ 9,971 $ 1,701,102 Nine months ended September 30, 2017 Property and Reinsurance Parent Consolidated ($ in thousands) Premiums earned $ 350,307 $ 99,207 $ — $ 449,514 Underwriting profit (loss): SAP underwriting profit (loss) (9,559 ) (14,899 ) — (24,458 ) GAAP adjustments 4,301 (942 ) — 3,359 GAAP underwriting profit (loss) (5,258 ) (15,841 ) — (21,099 ) Net investment income 24,225 9,421 33 33,679 Net realized investment gains (losses) and, beginning in 2018, change in unrealized investment gains on equity investments 3,033 (867 ) — 2,166 Other income (loss) 4,457 (1,457 ) — 3,000 Interest expense 253 — — 253 Other expenses 580 — 1,684 2,264 Income (loss) before income tax expense (benefit) $ 25,624 $ (8,744 ) $ (1,651 ) $ 15,229 Year ended December 31, 2017 Assets $ 1,200,636 $ 484,678 $ 604,105 $ 2,289,419 Eliminations — — (599,036 ) (599,036 ) Reclassifications (1,393 ) (6,273 ) (777 ) (8,443 ) Total assets $ 1,199,243 $ 478,405 $ 4,292 $ 1,681,940 The following table displays the premiums earned for the property and casualty insurance segment and the reinsurance segment for the three and nine months ended September 30, 2018 and 2017 , by line of insurance. Three months ended September 30, Nine months ended September 30, ($ in thousands) 2018 2017 2018 2017 Property and casualty insurance Commercial lines: Automobile $ 32,851 $ 30,229 $ 95,155 $ 87,275 Property 25,271 27,980 79,059 79,551 Workers' compensation 24,249 25,373 74,380 75,419 Other liability 31,399 24,996 81,952 73,378 Other 2,368 2,203 6,782 6,509 Total commercial lines 116,138 110,781 337,328 322,132 Personal lines 10,075 9,691 29,012 28,175 Total property and casualty insurance $ 126,213 $ 120,472 $ 366,340 $ 350,307 Reinsurance Pro rata reinsurance $ 10,484 $ 10,730 $ 33,627 $ 33,181 Excess of loss reinsurance 27,011 23,988 77,473 66,026 Total reinsurance $ 37,495 $ 34,718 $ 111,100 $ 99,207 Consolidated $ 163,708 $ 155,190 $ 477,440 $ 449,514 |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The actual income tax expense (benefit) for the three and nine months ended September 30, 2018 and 2017 differed from the “expected” income tax expense (benefit) for those periods (computed by applying the United States federal corporate tax rates of 21 percent during 2018 and 35 percent during 2017 to income (loss) before income tax) as follows: Three months ended Nine months ended ($ in thousands) 2018 2017 2018 2017 Computed "expected" income tax expense (benefit) $ 5,134 $ (154 ) $ 3,401 $ 5,330 Increases (decreases) in tax resulting from: Incremental benefit of net operating loss carry back 839 — — — Tax-exempt interest income (290 ) (656 ) (897 ) (2,122 ) Dividends received deduction (126 ) (294 ) (400 ) (948 ) Proration of tax-exempt interest and dividends received deduction 104 142 324 460 Other, net (365 ) (224 ) (311 ) (545 ) Total income tax expense (benefit) $ 5,296 $ (1,186 ) $ 2,117 $ 2,175 Pursuant to Staff Accounting Bulletin No. 118 issued by the Securities Exchange Commission, the Company made reasonable estimates of the effects the Tax Cuts and Jobs Act of 2017 (TCJA) had on deferred income tax assets and liabilities at December 31, 2017. For items where the Company could not make a reasonable estimate, primarily loss reserve discounting, the Company used existing accounting guidance and the provisions of the tax laws that were in place prior to the enactment. Beginning in the first quarter of 2018, the Company is using estimated industry discount factors until further guidance and updated discount factors are released by the Internal Revenue Service (IRS). The Company continues to wait on updated guidance from the IRS to complete its analysis of the effects of the TCJA. The Company had no provision for uncertain income tax positions at September 30, 2018 or December 31, 2017 . The Company recognized no interest expense or other penalties related to U.S. federal or state income taxes during the three or nine months ended September 30, 2018 or 2017 . 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 2015. |
EMPLOYEE RETIREMENT PLANS
EMPLOYEE RETIREMENT PLANS | 9 Months Ended |
Sep. 30, 2018 | |
Retirement Benefits [Abstract] | |
EMPLOYEE RETIREMENT PLANS | EMPLOYEE RETIREMENT PLANS The components of net periodic benefit cost (income) for Employers Mutual’s pension and postretirement benefit plans is as follows: Three months ended Nine months ended ($ in thousands) 2018 2017 2018 2017 Pension plans: Service cost $ 4,213 $ 3,783 $ 12,639 $ 11,351 Interest cost 2,681 2,798 8,044 8,393 Expected return on plan assets (6,013 ) (5,192 ) (18,039 ) (15,574 ) Amortization of net actuarial loss 135 911 403 2,732 Amortization of prior service cost — 5 — 15 Net periodic pension benefit cost $ 1,016 $ 2,305 $ 3,047 $ 6,917 Postretirement benefit plans: Service cost $ 369 $ 341 $ 1,105 $ 1,022 Interest cost 521 570 1,563 1,710 Expected return on plan assets (1,204 ) (1,077 ) (3,611 ) (3,233 ) Amortization of net actuarial loss 234 342 701 1,028 Amortization of prior service credit (2,783 ) (2,788 ) (8,347 ) (8,365 ) Net periodic postretirement benefit income $ (2,863 ) $ (2,612 ) $ (8,589 ) $ (7,838 ) Net periodic pension benefit cost allocated to the Company amounted to $305,000 and $692,000 for the three months and $914,000 and $2.1 million for the nine months ended September 30, 2018 and 2017 , respectively. Net periodic postretirement benefit income allocated to the Company amounted to $806,000 and $736,000 for the three months and $2.4 million and $2.2 million for the nine months ended September 30, 2018 and 2017 , respectively. The service cost component of net periodic pension and postretirement benefit cost/(income) allocated to the Company is included in the income statement line titled "other underwriting expenses". The other components of net periodic pension and postretirement benefit cost/(income) are included in the income statement line titled "other income". The Company does not plan to make additional contributions to the pension plan in 2018 . No contributions will be made to the Voluntary Employee Beneficiary Association (VEBA) trust in 2018 . |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 9 Months Ended |
Sep. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION The Company has a stock-based compensation plan for non-employee directors. Employers Mutual also 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 in the open market; or 3) directly purchasing common stock from the Company at the current fair value. Employers Mutual's current practice is to purchase common stock from the Company for use in all of its stock plans (including its non-employee director stock purchase plan and its employee stock purchase plan). A portion of the compensation expense recognized by Employers Mutual (as the requisite service period for restricted stock awards/units is rendered) is allocated to the Company’s property and casualty insurance subsidiaries though their participation in the pooling agreement. An account Employers Mutual established to hold previously granted restricted stock awards until they vest will periodically contain excess shares of the Company's stock stemming from forfeitures and surrenders. During the first nine months of 2018 , the Company repurchased 30,523 shares of stock from this unvested restricted stock account at an average cost of $26.30 . These repurchased shares are not deemed to be shares repurchased under the Company's stock repurchase program. During the first nine months of 2018 , 120,439 restricted stock units were granted to eligible employees of Employers Mutual and 2,800 shares of restricted stock awards were granted to non-employee directors of the Company. Under the stock plans, 92,214 shares of restricted stock vested, and 79,946 options were exercised at a weighted average exercise price of $14.53 . The Company recognized compensation expense from these plans of $224,000 ( $177,000 net of tax) and $296,000 ( $192,000 net of tax) for the three months and $830,000 ( $656,000 net of tax) and $508,000 ( $330,000 net of tax) for the nine months ended September 30, 2018 and 2017 , respectively. |
DISCLOSURES ABOUT THE FAIR VALU
DISCLOSURES ABOUT THE FAIR VALUE OF FINANCIAL INSTRUMENTS | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
DISCLOSURES ABOUT THE FAIR VALUE OF FINANCIAL INSTRUMENTS | DISCLOSURES ABOUT THE FAIR VALUES OF FINANCIAL INSTRUMENTS The carrying amounts and estimated fair values of the Company’s financial instruments as of September 30, 2018 and December 31, 2017 are summarized in the tables below. September 30, 2018 Carrying Estimated ($ in thousands) Assets: Fixed maturity securities available-for-sale: U.S. treasury $ 7,858 $ 7,858 U.S. government-sponsored agencies 290,057 290,057 Obligations of states and political subdivisions 282,307 282,307 Commercial mortgage-backed 75,314 75,314 Residential mortgage-backed 146,725 146,725 Other asset-backed 21,329 21,329 Corporate 424,482 424,482 Total fixed maturity securities available-for-sale 1,248,072 1,248,072 Equity investments, at fair value Common stocks: Financial services 48,647 48,647 Information technology 39,711 39,711 Healthcare 33,389 33,389 Consumer staples 13,302 13,302 Consumer discretionary 24,087 24,087 Energy 17,808 17,808 Industrials 23,943 23,943 Other 15,029 15,029 Non-redeemable preferred stocks 18,706 18,706 Investment funds 4,146 4,146 Total equity investments 238,768 238,768 Short-term investments 33,717 33,717 Liabilities: Surplus notes 25,000 15,145 December 31, 2017 Carrying Estimated ($ in thousands) Assets: Fixed maturity securities available-for-sale: U.S. treasury $ 8,078 $ 8,078 U.S. government-sponsored agencies 297,949 297,949 Obligations of states and political subdivisions 307,536 307,536 Commercial mortgage-backed 83,980 83,980 Residential mortgage-backed 119,799 119,799 Other asset-backed 24,114 24,114 Corporate 433,560 433,560 Total fixed maturity securities available-for-sale 1,275,016 1,275,016 Equity securities available-for-sale: Common stocks: Financial services 43,522 43,522 Information technology 35,810 35,810 Healthcare 30,595 30,595 Consumer staples 14,127 14,127 Consumer discretionary 20,538 20,538 Energy 16,905 16,905 Industrials 28,489 28,489 Other 16,421 16,421 Non-redeemable preferred stocks 21,708 21,708 Total equity securities available-for-sale 228,115 228,115 Short-term investments 23,613 23,613 Liabilities: Surplus notes 25,000 16,689 The estimated fair values 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. During 2018, the Company invested in a few privately placed equity investments. One of these was in the form of preferred units in a limited liability corporation offering weather-related predictive analytics and risk mitigation tools. In accordance with the new guidance related to financial instruments that was adopted January 1, 2018, this investment does not have a readily determinable fair value. Therefore, the Company has elected to measure this investment at the alternative measurement of cost, adjusted for impairments and observable price changes. No impairment losses have been made to this investment. Due to the alternative measurement classification, this investment is excluded from the disclosures in this footnote. The other privately placed equity investment, also in the field of insurance technology, is accounted for under the equity method of accounting, and as such is also excluded from these fair value disclosures. Since 2016, the Company has held another privately placed equity investment in the form of non-redeembable convertible preferred stock issued by a start-up technology company that Employers Mutual works with in its data analytics activities. During 2018, the Company purchased common stock in this entity. The Company accounts for its investment in this entity under the equity method of accounting, and as such is excluded from these fair value disclosures. 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 values 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 over a 25 -year term (the surplus notes have no stated maturity date, and the interest to be paid is assumed to continue at the current interest rate in place of 2.73 percent ). 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. NAV - The fair values of investment company limited partnership investments and similar vehicles (referred to as investment funds) are based on the capital account balances reported by the investment funds subject to their management review and adjustment. These capital account balances reflect the fair value of the investment funds. 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 market 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 September 30, 2018 and December 31, 2017 , the Company had no securities priced solely from broker quotes. A small number of the Company’s securities are not priced by the independent pricing service. One of these is an equity security that is reported as a Level 3 fair value measurement since no observable inputs are used in its valuation. This 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 consist of six fixed maturity securities ( eight at December 31, 2017). 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, the Company's investment custodian, or the Company's investment department using similar pricing techniques as the Company’s independent pricing service. Presented in the tables below are the estimated fair values of the Company’s financial instruments as of September 30, 2018 and December 31, 2017 . September 30, 2018 Fair value measurements using ($ in thousands) Total Investments measured at net asset value (NAV) Quoted Significant Significant Financial instruments reported at fair value on recurring basis: Assets: Fixed maturity securities available-for-sale: U.S. treasury $ 7,858 $ — $ — $ 7,858 $ — U.S. government-sponsored agencies 290,057 — — 290,057 — Obligations of states and political subdivisions 282,307 — — 282,307 — Commercial mortgage-backed 75,314 — — 75,314 — Residential mortgage-backed 146,725 — — 146,725 — Other asset-backed 21,329 — — 21,329 — Corporate 424,482 — — 424,133 349 Total fixed maturity securities available-for-sale 1,248,072 — — 1,247,723 349 Equity investments, at fair value: Common stocks: Financial services 48,647 — 48,647 — — Information technology 39,711 — 39,711 — — Healthcare 33,389 — 33,389 — — Consumer staples 13,302 — 13,302 — — Consumer discretionary 24,087 — 24,087 — — Energy 17,808 — 17,808 — — Industrials 23,943 — 23,943 — — Other 15,029 — 15,029 — — Non-redeemable preferred stocks 18,706 — 9,093 9,613 — Investment funds 4,146 4,146 — — — Total equity investments 238,768 4,146 225,009 9,613 — Short-term investments 33,717 — 33,717 — — Financial instruments not reported at fair value: Liabilities: Surplus notes 15,145 — — — 15,145 December 31, 2017 Fair value measurements using ($ in thousands) Total Investments measured at net asset value (NAV) Quoted Significant Significant Financial instruments reported at fair value on recurring basis: Assets: Fixed maturity securities available-for-sale: U.S. treasury $ 8,078 $ — $ — $ 8,078 $ — U.S. government-sponsored agencies 297,949 — — 297,949 — Obligations of states and political subdivisions 307,536 — — 307,536 — Commercial mortgage-backed 83,980 — — 83,980 — Residential mortgage-backed 119,799 — — 119,799 — Other asset-backed 24,114 — — 24,114 — Corporate 433,560 — — 432,940 620 Total fixed maturity securities available-for-sale 1,275,016 — — 1,274,396 620 Equity securities available-for-sale: Common stocks: Financial services 43,522 — 43,519 — 3 Information technology 35,810 — 35,810 — — Healthcare 30,595 — 30,595 — — Consumer staples 14,127 — 14,127 — — Consumer discretionary 20,538 — 20,538 — — Energy 16,905 — 16,905 — — Industrials 28,489 — 28,489 — — Other 16,421 — 16,421 — — Non-redeemable preferred stocks 21,708 — 9,512 10,196 2,000 Total equity securities available-for-sale 228,115 — 215,916 10,196 2,003 Short-term investments 23,613 — 23,613 — — Financial instruments not reported at fair value: Liabilities: Surplus notes 16,689 — — — 16,689 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 three and nine months ended September 30, 2018 and 2017 . Any unrealized gains or losses on fixed maturity securities are recognized in other comprehensive income (loss). Any gains or losses from settlements, disposals, impairments and, starting in 2018, unrealized gains or losses on equity securities are reported as realized investment gains or losses in net income. ($ in thousands) Fair value measurements using significant unobservable (Level 3) inputs Three months ended September 30, 2018 Fixed maturity securities available-for-sale, corporate Equity securities, Total Beginning balance $ 474 $ — $ 474 Settlements (125 ) — (125 ) Balance at September 30, 2018 $ 349 $ — $ 349 Nine months ended September 30, 2018 Beginning balance $ 620 $ 3 $ 623 Settlements (270 ) — (270 ) Unrealized losses included in net income — (3 ) (3 ) Unrealized losses included in other comprehensive income (loss) on securities still held at reporting date (1 ) — (1 ) Balance at September 30, 2018 $ 349 $ — $ 349 ($ in thousands) Fair value measurements using significant Three months ended September 30, 2017 Fixed maturity securities available-for-sale, corporate Equity securities available-for-sale, financial services Equity securities available-for-sale, non-redeemable preferred stocks Total Beginning balance $ 840 $ 3 $ 2,000 $ 2,843 Settlements (125 ) — — (125 ) Unrealized losses included in other comprehensive income (loss) on securities still held at reporting date (1 ) — — (1 ) Balance at September 30, 2017 $ 714 $ 3 $ 2,000 $ 2,717 Nine months ended September 30, 2017 Beginning balance $ 982 $ 3 $ 2,000 $ 2,985 Settlements (265 ) — — (265 ) Unrealized losses included in other comprehensive income (loss) on securities still held at reporting date (3 ) — — (3 ) Balance at September 30, 2017 $ 714 $ 3 $ 2,000 $ 2,717 |
INVESTMENTS
INVESTMENTS | 9 Months Ended |
Sep. 30, 2018 | |
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 September 30, 2018 and December 31, 2017 are as follows. All fixed maturity securities are classified as available-for-sale and are carried at fair value. September 30, 2018 Amortized Gross Gross Estimated ($ in thousands) Securities available-for-sale: Fixed maturity securities: U.S. treasury $ 8,133 $ — $ 275 $ 7,858 U.S. government-sponsored agencies 305,159 — 15,102 290,057 Obligations of states and political subdivisions 274,342 8,773 808 282,307 Commercial mortgage-backed 78,943 209 3,838 75,314 Residential mortgage-backed 149,847 1,925 5,047 146,725 Other asset-backed 22,165 313 1,149 21,329 Corporate 426,386 2,698 4,602 424,482 Total fixed maturity securities $ 1,264,975 $ 13,918 $ 30,821 $ 1,248,072 December 31, 2017 Amortized Gross Gross Estimated ($ in thousands) Securities available-for-sale: Fixed maturity securities: U.S. treasury $ 8,115 $ — $ 37 $ 8,078 U.S. government-sponsored agencies 303,932 122 6,105 297,949 Obligations of states and political subdivisions 290,038 17,729 231 307,536 Commercial mortgage-backed 84,058 591 669 83,980 Residential mortgage-backed 120,554 2,479 3,234 119,799 Other asset-backed 23,934 625 445 24,114 Corporate 422,535 11,490 465 433,560 Total fixed maturity securities 1,253,166 33,036 11,186 1,275,016 Equity securities: Common stocks: Financial services 30,103 13,594 175 43,522 Information technology 18,308 17,504 2 35,810 Healthcare 18,877 11,876 158 30,595 Consumer staples 9,275 4,917 65 14,127 Consumer discretionary 10,935 9,640 37 20,538 Energy 12,441 5,381 917 16,905 Industrials 12,746 15,757 14 28,489 Other 11,058 5,363 — 16,421 Non-redeemable preferred stocks 20,531 1,216 39 21,708 Total equity securities 144,274 85,248 1,407 228,115 Total securities available-for-sale $ 1,397,440 $ 118,284 $ 12,593 $ 1,503,131 The following tables set forth the estimated fair values and gross unrealized losses associated with investment securities that were in an unrealized loss position recognized in accumulated other comprehensive income as of September 30, 2018 and December 31, 2017 , listed by length of time the securities were consistently in an unrealized loss position. September 30, 2018 Less than twelve months Twelve months or longer Total ($ in thousands) Fair Unrealized Fair Unrealized Fair Unrealized Securities available-for-sale: Fixed maturity securities: U.S. treasury $ 7,621 $ 263 $ 237 $ 12 $ 7,858 $ 275 U.S. government-sponsored agencies 145,814 5,252 144,243 9,850 290,057 15,102 Obligations of states and political subdivisions 21,833 185 11,881 623 33,714 808 Commercial mortgage-backed 43,343 2,014 24,829 1,824 68,172 3,838 Residential mortgage-backed 89,534 2,439 33,240 2,608 122,774 5,047 Other asset-backed 4,969 124 11,985 1,025 16,954 1,149 Corporate 217,534 4,020 11,856 582 229,390 4,602 Total fixed maturity securities $ 530,648 $ 14,297 $ 238,271 $ 16,524 $ 768,919 $ 30,821 December 31, 2017 Less than twelve months Twelve months or longer Total ($ in thousands) Fair Unrealized Fair Unrealized Fair Unrealized Securities available-for-sale: Fixed maturity securities: U.S. treasury $ 8,078 $ 37 $ — $ — $ 8,078 $ 37 U.S. government-sponsored agencies 134,284 1,491 127,604 4,614 261,888 6,105 Obligations of states and political subdivisions — — 14,416 231 14,416 231 Commercial mortgage-backed 32,155 221 8,530 448 40,685 669 Residential mortgage-backed 30,003 394 22,948 2,840 52,951 3,234 Other asset-backed — — 13,440 445 13,440 445 Corporate 28,314 329 4,047 136 32,361 465 Total fixed maturity securities 232,834 2,472 190,985 8,714 423,819 11,186 Equity securities: Common stocks: Financial services 4,391 175 — — 4,391 175 Information technology 344 2 — — 344 2 Healthcare 2,532 158 — — 2,532 158 Consumer staples 575 65 — — 575 65 Consumer discretionary 992 37 — — 992 37 Energy 3,181 917 — — 3,181 917 Industrials 3,016 14 — — 3,016 14 Non-redeemable preferred stocks — — 1,961 39 1,961 39 Total equity securities 15,031 1,368 1,961 39 16,992 1,407 Total temporarily impaired securities $ 247,865 $ 3,840 $ 192,946 $ 8,753 $ 440,811 $ 12,593 Nearly all of the fixed maturity securities that are in an unrealized loss position 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 September 30, 2018 . The amortized cost and estimated fair values of fixed maturity securities at September 30, 2018 , 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. ($ in thousands) Amortized Estimated Securities available-for-sale: Due in one year or less $ 40,384 $ 40,719 Due after one year through five years 224,706 225,537 Due after five years through ten years 365,415 360,172 Due after ten years 404,097 398,067 Securities not due at a single maturity date 230,373 223,577 Totals $ 1,264,975 $ 1,248,072 A summary of realized investment gains and (losses) and the change in unrealized investment gains on equity investments is as follows: Three months ended September 30, Nine months ended September 30, ($ in thousands) 2018 2017 2018 2017 Fixed maturity securities available-for-sale: Gross realized investment gains $ 90 $ 29 $ 324 $ 408 Gross realized investment losses (1,050 ) (230 ) (7,018 ) (2,316 ) Equity securities: Net realized investment gains, excluding 4,325 961 8,520 9,763 Change in unrealized investment gains 9,502 XXXX (799 ) XXXX "Other-than-temporary" impairments XXXX (355 ) XXXX (1,088 ) Other long-term investments, net (1,732 ) (999 ) (1,145 ) (4,601 ) Totals $ 11,135 $ (594 ) $ (118 ) $ 2,166 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 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. The net realized investment gains (losses) recognized on other long-term investments primarily represent changes in the carrying value of a limited partnership that is used solely to support an equity tail-risk hedging strategy. |
CONTINGENT LIABILITIES
CONTINGENT LIABILITIES | 9 Months Ended |
Sep. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
CONTINGENT LIABILITIES | CONTINGENT LIABILITIES 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. 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 $110,000 at December 31, 2017 . The Company had a contingent liability for the aggregate guaranteed amount of the annuities of $183,000 at December 31, 2017 should the issuers of those annuities fail to perform. Although management is not able to verify the amount, the Company would likely have a similar contingent liability at September 30, 2018 . The probability of a material loss due to failure of performance by the issuers of these annuities is considered remote. |
STOCK REPURCHASE PROGRAM
STOCK REPURCHASE PROGRAM | 9 Months Ended |
Sep. 30, 2018 | |
Equity [Abstract] | |
STOCK REPURCHASE PROGRAM | STOCK REPURCHASE PROGRAM On November 3, 2011, the Company’s Board of Directors authorized a $15.0 million stock repurchase program. This program does not have an expiration date. The timing and terms of the purchases are determined by management based on board approved parameters and 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. The Company repurchased 25,300 shares of its common stock at an average cost of $25.76 during the first nine months of 2018. No repurchases were made during the first nine months of 2017. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME | 9 Months Ended |
Sep. 30, 2018 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME | ACCUMULATED OTHER COMPREHENSIVE INCOME The Company has available-for-sale securities and receives an allocation of the actuarial losses and net prior service credits associated with Employers Mutual’s pension and postretirement benefit plans, both of which generate accumulated other comprehensive income (loss) amounts. The following table reconciles, by component, the beginning and ending balances of accumulated other comprehensive income (loss), net of tax. Accumulated other comprehensive income (loss) by component Unrealized Unrecognized pension and postretirement benefit obligations ($ in thousands) Net actuarial loss Prior service credit Total Total Balance at December 31, 2017 $ 83,497 $ (13,074 ) $ 12,961 $ (113 ) $ 83,384 Cumulative adjustment for adoption of financial instruments recognition and measurement changes (66,234 ) — — — (66,234 ) Other comprehensive income (loss) before reclassifications (35,903 ) — — — (35,903 ) Amounts reclassified from accumulated other comprehensive income (loss) 5,288 250 (1,867 ) (1,617 ) 3,671 Other comprehensive income (loss) (30,615 ) 250 (1,867 ) (1,617 ) (32,232 ) Balance at September 30, 2018 $ (13,352 ) $ (12,824 ) $ 11,094 $ (1,730 ) $ (15,082 ) Accumulated other comprehensive income (loss) by component Unrealized Unrecognized pension and postretirement benefit obligations ($ in thousands) Net actuarial loss Prior service credit Total Total Balance at December 31, 2016 $ 49,748 $ (16,299 ) $ 12,632 $ (3,667 ) $ 46,081 Other comprehensive income (loss) before reclassifications 23,460 — — — 23,460 Amounts reclassified from accumulated other comprehensive income (loss) (4,399 ) 719 (1,535 ) (816 ) (5,215 ) Other comprehensive income (loss) 19,061 719 (1,535 ) (816 ) 18,245 Balance at September 30, 2017 $ 68,809 $ (15,580 ) $ 11,097 $ (4,483 ) $ 64,326 The following tables display amounts reclassified out of accumulated other comprehensive income and into net income during the three and nine months ended September 30, 2018 and 2017 , respectively. ($ in thousands) Amounts reclassified from accumulated other comprehensive income (loss) Accumulated other comprehensive Three months ended Nine months ended Affected line item in the Unrealized gains (losses) on investments: Reclassification adjustment for net realized investment gains (losses) included in net income $ (960 ) $ (6,694 ) Net realized investment gains (losses) and, beginning in 2018, change in unrealized investment gains on equity investments Deferred income tax (expense) benefit 202 1,406 Total income tax expense (benefit) Net reclassification adjustment (758 ) (5,288 ) Net income Unrecognized pension and postretirement benefit obligations: Reclassification adjustment for amounts amortized into net periodic pension and postretirement benefit income: Net actuarial loss (106 ) (316 ) (1) Prior service credit 788 2,363 (1) Total before tax 682 2,047 Deferred income tax (expense) benefit (143 ) (430 ) Net reclassification adjustment 539 1,617 Total reclassification adjustment $ (219 ) $ (3,671 ) (1) These reclassified components of accumulated other comprehensive income are included in the computation of net periodic pension and postretirement benefit income (see note 7, Employee Retirement Plans, for additional details). ($ in thousands) Amounts reclassified from accumulated other comprehensive income (loss) Accumulated other comprehensive Three months ended September 30, 2017 Nine months ended September 30, 2017 Affected line item in the Unrealized gains (losses) on investments: Reclassification adjustment for net realized investment gains (losses) included in net income $ 405 $ 6,767 Net realized investment gains (losses) and, beginning in 2018, change in unrealized investment gains on equity investments Deferred income tax (expense) benefit (141 ) (2,368 ) Total income tax expense (benefit) Net reclassification adjustment 264 4,399 Net income Unrecognized pension and postretirement benefit obligations: Reclassification adjustment for amounts amortized into net periodic pension and postretirement benefit income: Net actuarial loss (370 ) (1,107 ) (1) Prior service credit 787 2,362 (1) Total before tax 417 1,255 Deferred income tax (expense) benefit (146 ) (439 ) Net reclassification adjustment 271 816 Total reclassification adjustment $ 535 $ 5,215 (1) These reclassified components of accumulated other comprehensive income are included in the computation of net periodic pension and postretirement benefit income (see note 7, Employee Retirement Plans, for additional details). |
NEW ACCOUNTING PRONOUNCEMENTS N
NEW ACCOUNTING PRONOUNCEMENTS NOT YET ADOPTED | 9 Months Ended |
Sep. 30, 2018 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
NEW ACCOUNTING PRONOUNCEMENTS NOT YET ADOPTED | NEW ACCOUNTING PRONOUNCEMENTS NOT YET ADOPTED In February 2016, the FASB issued updated guidance in Leases Topic 842 of the ASC, which supersedes the guidance in Leases Topic 840 of the ASC. The objective of this update is to increase transparency and comparability among organizations by requiring recognition of lease assets and lease liabilities on the balance sheet, and disclosure of key information about leasing arrangements. This guidance is effective for interim and annual periods beginning after December 15, 2018, and is to be applied using a modified retrospective approach. Early adoption is permitted. The Company will adopt this guidance during the first quarter of 2019. Management's research of this guidance led to the conclusion that lease costs allocated to the Company through the pooling and quota share agreements can not be attributed to a specified asset, and therefore do not meet the definition of a leased asset contained in the guidance. As a result, adoption of this guidance is not expected to have an impact on the Company's consolidated financial condition or net income. In June 2016, the FASB issued updated guidance in Financial Instruments-Credit Losses Topic 326 of the ASC. The objective of this update is to provide information about expected credit losses on financial instruments and other commitments to extend credit. Specifically, this updated guidance replaces the current incurred loss impairment methodology which delays recognition of a loss until it is probable a loss has been incurred, with a methodology that reflects expected credit losses considering a broader range of reasonable and supportable information. This guidance covers financial assets that are not accounted for at fair value through net income, thus will not be applicable to the Company's equity investments upon implementation of the updated guidance described above for the Financial Instruments-Overall Subtopic 825-10. This guidance is effective for interim and annual periods beginning after December 15, 2019, and is to be applied with a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective (modified-retrospective approach). Early adoption is permitted, but only to fiscal years beginning after December 15, 2018. The Company will adopt this guidance during the first quarter of 2020. The Company is currently evaluating the impact this guidance will have on the Company's consolidated financial condition and net income. In August 2018, the FASB issued updated guidance guidance in Compensation-Retirement Benefits Topic 715 of the ASC. The objective of this update is to improve the effectiveness of disclosures in the notes to financial statements as part of the FASB's disclosure framework project. As it relates to the Company's footnote disclosures, this update adds to the annual disclosures the weighted-average crediting rate used in Employers Mutual's pension plans, and requires explanations for significant gains and losses in the benefit obligations of Employers Mutual's pension and postretirement benefit plans. This update removes from the Company's annual disclosures the amounts in accumulated other comprehensive income for pension and postretirement benefit plans expected to be recognized as components of net periodic benefit cost in the next fiscal year. The Company will adopt this guidance during the fourth quarter of 2018. |
Subsequent events (Notes)
Subsequent events (Notes) | 9 Months Ended |
Sep. 30, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | On October 29, 2018, the Company, Employers Mutual and their subsidiary and affiliated insurance companies (collectively the "EMC Insurance Companies") announced that they had made a strategic decision to exit personal lines business so that more time and resources can be dedicated to the commercial, reinsurance and life business. Personal lines premiums written currently comprise approximately six percent of the Company's total premiums written. During the fourth quarter of 2018, the Company expects to incur approximately $1.0 million of expense associated with the severance costs and write-off of personal lines software currently in development. During 2019, the Company expects to incur approximately $1.0 million of additional severance costs. In addition, the amortization of personal lines software currently in use will be accelerated over the transition period, which is expected to be approximately 18 months. |
REINSURANCE (Tables)
REINSURANCE (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Reinsurance Disclosures [Abstract] | |
Schedule of reinsurance transactions for insurance companies | The effect of reinsurance on premiums written and earned, and losses and settlement expenses incurred, for the three and nine months ended September 30, 2018 and 2017 is presented below. The classification of the assumed and ceded reinsurance amounts between affiliates and nonaffiliates is based on the participants in the underlying reinsurance agreements, and is intended to provide an understanding of the actual source of the reinsurance activities. This presentation differs from the classifications used in the consolidated financial statements, where all amounts flowing through the pooling and quota share agreements and inter-company reinsurance programs with Employers Mutual are reported as “affiliated” balances. Three months ended September 30, 2018 ($ in thousands) Property and Reinsurance Total Premiums written Direct $ 126,737 $ — $ 126,737 Assumed from nonaffiliates 1,138 42,211 43,349 Assumed from affiliates 159,648 — 159,648 Ceded to nonaffiliates (7,309 ) (1,001 ) (8,310 ) Ceded to affiliates (127,427 ) (1,312 ) (128,739 ) Net premiums written $ 152,787 $ 39,898 $ 192,685 Premiums earned Direct $ 100,850 $ — $ 100,850 Assumed from nonaffiliates 1,017 41,128 42,145 Assumed from affiliates 133,781 — 133,781 Ceded to nonaffiliates (7,895 ) (2,321 ) (10,216 ) Ceded to affiliates (101,540 ) (1,312 ) (102,852 ) Net premiums earned $ 126,213 $ 37,495 $ 163,708 Losses and settlement expenses incurred Direct $ 51,606 $ — $ 51,606 Assumed from nonaffiliates 1,039 31,378 32,417 Assumed from affiliates 87,992 311 88,303 Ceded to nonaffiliates (5,205 ) (3,774 ) (8,979 ) Ceded to affiliates (53,997 ) 1,927 (52,070 ) Net losses and settlement expenses incurred $ 81,435 $ 29,842 $ 111,277 Three months ended September 30, 2017 ($ in thousands) Property and Reinsurance Total Premiums written Direct $ 122,665 $ — $ 122,665 Assumed from nonaffiliates 1,333 38,955 40,288 Assumed from affiliates 153,900 — 153,900 Ceded to nonaffiliates (10,532 ) (1,220 ) (11,752 ) Ceded to affiliates (123,355 ) (1,212 ) (124,567 ) Net premiums written $ 144,011 $ 36,523 $ 180,534 Premiums earned Direct $ 96,547 $ — $ 96,547 Assumed from nonaffiliates 1,225 38,463 39,688 Assumed from affiliates 128,325 — 128,325 Ceded to nonaffiliates (8,388 ) (2,533 ) (10,921 ) Ceded to affiliates (97,237 ) (1,212 ) (98,449 ) Net premiums earned $ 120,472 $ 34,718 $ 155,190 Losses and settlement expenses incurred Direct $ 62,745 $ — $ 62,745 Assumed from nonaffiliates 961 57,268 58,229 Assumed from affiliates 81,047 277 81,324 Ceded to nonaffiliates (4,435 ) (3,039 ) (7,474 ) Ceded to affiliates (66,279 ) (8,969 ) (75,248 ) Net losses and settlement expenses incurred $ 74,039 $ 45,537 $ 119,576 Nine months ended September 30, 2018 ($ in thousands) Property and Reinsurance Total Premiums written Direct $ 325,360 $ — $ 325,360 Assumed from nonaffiliates 3,440 122,564 126,004 Assumed from affiliates 430,699 — 430,699 Ceded to nonaffiliates (23,232 ) (9,015 ) (32,247 ) Ceded to affiliates (332,010 ) (3,937 ) (335,947 ) Net premiums written $ 404,257 $ 109,612 $ 513,869 Premiums earned Direct $ 295,606 $ — $ 295,606 Assumed from nonaffiliates 3,319 122,577 125,896 Assumed from affiliates 394,697 — 394,697 Ceded to nonaffiliates (25,026 ) (7,540 ) (32,566 ) Ceded to affiliates (302,256 ) (3,937 ) (306,193 ) Net premiums earned $ 366,340 $ 111,100 $ 477,440 Losses and settlement expenses incurred Direct $ 165,962 $ — $ 165,962 Assumed from nonaffiliates 2,801 84,846 87,647 Assumed from affiliates 269,672 908 270,580 Ceded to nonaffiliates (10,107 ) (6,338 ) (16,445 ) Ceded to affiliates (169,137 ) 2,389 (166,748 ) Net losses and settlement expenses incurred $ 259,191 $ 81,805 $ 340,996 Nine months ended September 30, 2017 ($ in thousands) Property and Reinsurance Total Premiums written Direct $ 312,809 $ — $ 312,809 Assumed from nonaffiliates 3,542 108,056 111,598 Assumed from affiliates 415,426 — 415,426 Ceded to nonaffiliates (27,109 ) (9,074 ) (36,183 ) Ceded to affiliates (319,459 ) (3,637 ) (323,096 ) Net premiums written $ 385,209 $ 95,345 $ 480,554 Premiums earned Direct $ 287,821 $ — $ 287,821 Assumed from nonaffiliates 3,370 110,563 113,933 Assumed from affiliates 375,601 — 375,601 Ceded to nonaffiliates (22,014 ) (7,719 ) (29,733 ) Ceded to affiliates (294,471 ) (3,637 ) (298,108 ) Net premiums earned $ 350,307 $ 99,207 $ 449,514 Losses and settlement expenses incurred Direct $ 198,317 $ — $ 198,317 Assumed from nonaffiliates 2,406 104,685 107,091 Assumed from affiliates 258,169 942 259,111 Ceded to nonaffiliates (9,400 ) (4,626 ) (14,026 ) Ceded to affiliates (218,425 ) (8,979 ) (227,404 ) Net losses and settlement expenses incurred $ 231,067 $ 92,022 $ 323,089 |
LIABILITY FOR LOSSES AND SETT_2
LIABILITY FOR LOSSES AND SETTLEMENT EXPENSES (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
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. Nine months ended September 30, ($ in thousands) 2018 2017 Gross reserves at beginning of year $ 732,612 $ 690,532 Re-valuation due to foreign currency exchange rates 525 (1,913 ) Less ceded reserves at beginning of year 30,923 20,664 Net reserves at beginning of year 701,164 671,781 Incurred losses and settlement expenses related to: Current year 352,992 340,706 Prior years (11,996 ) (17,617 ) Total incurred losses and settlement expenses 340,996 323,089 Paid losses and settlement expenses related to: Current year 119,399 120,053 Prior years 193,673 173,986 Total paid losses and settlement expenses 313,072 294,039 Net reserves at end of period 729,088 700,831 Plus ceded reserves at end of period 32,661 25,348 Re-valuation due to foreign currency exchange rates (168 ) 282 Gross reserves at end of period $ 761,581 $ 726,461 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
Summarized financial information for segments | Three months ended September 30, 2018 Property and Reinsurance Parent Consolidated ($ in thousands) Premiums earned $ 126,213 $ 37,495 $ — $ 163,708 Underwriting profit (loss): SAP underwriting profit (loss) 138 (844 ) — (706 ) GAAP adjustments 378 398 — 776 GAAP underwriting profit (loss) 516 (446 ) — 70 Net investment income 8,514 3,423 14 11,951 Net realized investment gains (losses) and, beginning in 2018, change in unrealized investment gains on equity investments 6,760 4,476 (101 ) 11,135 Other income (loss) 2,184 147 — 2,331 Interest expense 170 — — 170 Other expenses 282 — 591 873 Income (loss) before income tax expense (benefit) $ 17,522 $ 7,600 $ (678 ) $ 24,444 Three months ended September 30, 2017 Property and Reinsurance Parent Consolidated ($ in thousands) Premiums earned $ 120,472 $ 34,718 $ — $ 155,190 Underwriting profit (loss): SAP underwriting profit (loss) 1,927 (18,364 ) — (16,437 ) GAAP adjustments 4,582 194 — 4,776 GAAP underwriting profit (loss) 6,509 (18,170 ) — (11,661 ) Net investment income 8,252 3,237 12 11,501 Net realized investment gains (losses) and, beginning in 2018, change in unrealized investment gains on equity investments (108 ) (486 ) — (594 ) Other income (loss) 1,457 (358 ) — 1,099 Interest expense 84 — — 84 Other expenses 170 — 531 701 Income (loss) before income tax expense (benefit) $ 15,856 $ (15,777 ) $ (519 ) $ (440 ) Nine months ended September 30, 2018 Property and Reinsurance Parent Consolidated ($ in thousands) Premiums earned $ 366,340 $ 111,100 $ — $ 477,440 Underwriting profit (loss): SAP underwriting profit (loss) (29,082 ) 4,426 — (24,656 ) GAAP adjustments 2,561 (355 ) — 2,206 GAAP underwriting profit (loss) (26,521 ) 4,071 — (22,450 ) Net investment income 25,072 10,001 27 35,100 Net realized investment gains (losses) and, beginning in 2018, change in unrealized investment gains on equity investments (1,225 ) 1,208 (101 ) (118 ) Other income (loss) 6,330 389 — 6,719 Interest expense 483 — — 483 Other expenses 759 — 1,815 2,574 Income (loss) before income tax expense (benefit) $ 2,414 $ 15,669 $ (1,889 ) $ 16,194 Assets $ 1,212,964 $ 481,047 $ 574,885 $ 2,268,896 Eliminations — — (564,796 ) (564,796 ) Reclassifications (2,880 ) — (118 ) (2,998 ) Total assets $ 1,210,084 $ 481,047 $ 9,971 $ 1,701,102 Nine months ended September 30, 2017 Property and Reinsurance Parent Consolidated ($ in thousands) Premiums earned $ 350,307 $ 99,207 $ — $ 449,514 Underwriting profit (loss): SAP underwriting profit (loss) (9,559 ) (14,899 ) — (24,458 ) GAAP adjustments 4,301 (942 ) — 3,359 GAAP underwriting profit (loss) (5,258 ) (15,841 ) — (21,099 ) Net investment income 24,225 9,421 33 33,679 Net realized investment gains (losses) and, beginning in 2018, change in unrealized investment gains on equity investments 3,033 (867 ) — 2,166 Other income (loss) 4,457 (1,457 ) — 3,000 Interest expense 253 — — 253 Other expenses 580 — 1,684 2,264 Income (loss) before income tax expense (benefit) $ 25,624 $ (8,744 ) $ (1,651 ) $ 15,229 Year ended December 31, 2017 Assets $ 1,200,636 $ 484,678 $ 604,105 $ 2,289,419 Eliminations — — (599,036 ) (599,036 ) Reclassifications (1,393 ) (6,273 ) (777 ) (8,443 ) Total assets $ 1,199,243 $ 478,405 $ 4,292 $ 1,681,940 |
Summary of net premiums earned by line of insurance | The following table displays the premiums earned for the property and casualty insurance segment and the reinsurance segment for the three and nine months ended September 30, 2018 and 2017 , by line of insurance. Three months ended September 30, Nine months ended September 30, ($ in thousands) 2018 2017 2018 2017 Property and casualty insurance Commercial lines: Automobile $ 32,851 $ 30,229 $ 95,155 $ 87,275 Property 25,271 27,980 79,059 79,551 Workers' compensation 24,249 25,373 74,380 75,419 Other liability 31,399 24,996 81,952 73,378 Other 2,368 2,203 6,782 6,509 Total commercial lines 116,138 110,781 337,328 322,132 Personal lines 10,075 9,691 29,012 28,175 Total property and casualty insurance $ 126,213 $ 120,472 $ 366,340 $ 350,307 Reinsurance Pro rata reinsurance $ 10,484 $ 10,730 $ 33,627 $ 33,181 Excess of loss reinsurance 27,011 23,988 77,473 66,026 Total reinsurance $ 37,495 $ 34,718 $ 111,100 $ 99,207 Consolidated $ 163,708 $ 155,190 $ 477,440 $ 449,514 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Reconciliation of income tax expense (benefit) | The actual income tax expense (benefit) for the three and nine months ended September 30, 2018 and 2017 differed from the “expected” income tax expense (benefit) for those periods (computed by applying the United States federal corporate tax rates of 21 percent during 2018 and 35 percent during 2017 to income (loss) before income tax) as follows: Three months ended Nine months ended ($ in thousands) 2018 2017 2018 2017 Computed "expected" income tax expense (benefit) $ 5,134 $ (154 ) $ 3,401 $ 5,330 Increases (decreases) in tax resulting from: Incremental benefit of net operating loss carry back 839 — — — Tax-exempt interest income (290 ) (656 ) (897 ) (2,122 ) Dividends received deduction (126 ) (294 ) (400 ) (948 ) Proration of tax-exempt interest and dividends received deduction 104 142 324 460 Other, net (365 ) (224 ) (311 ) (545 ) Total income tax expense (benefit) $ 5,296 $ (1,186 ) $ 2,117 $ 2,175 |
EMPLOYEE RETIREMENT PLANS (Tabl
EMPLOYEE RETIREMENT PLANS (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Retirement Benefits [Abstract] | |
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: Three months ended Nine months ended ($ in thousands) 2018 2017 2018 2017 Pension plans: Service cost $ 4,213 $ 3,783 $ 12,639 $ 11,351 Interest cost 2,681 2,798 8,044 8,393 Expected return on plan assets (6,013 ) (5,192 ) (18,039 ) (15,574 ) Amortization of net actuarial loss 135 911 403 2,732 Amortization of prior service cost — 5 — 15 Net periodic pension benefit cost $ 1,016 $ 2,305 $ 3,047 $ 6,917 Postretirement benefit plans: Service cost $ 369 $ 341 $ 1,105 $ 1,022 Interest cost 521 570 1,563 1,710 Expected return on plan assets (1,204 ) (1,077 ) (3,611 ) (3,233 ) Amortization of net actuarial loss 234 342 701 1,028 Amortization of prior service credit (2,783 ) (2,788 ) (8,347 ) (8,365 ) Net periodic postretirement benefit income $ (2,863 ) $ (2,612 ) $ (8,589 ) $ (7,838 ) |
DISCLOSURES ABOUT THE FAIR VA_2
DISCLOSURES ABOUT THE FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Summary of carrying amount and estimated fair value of financial instruments | The carrying amounts and estimated fair values of the Company’s financial instruments as of September 30, 2018 and December 31, 2017 are summarized in the tables below. September 30, 2018 Carrying Estimated ($ in thousands) Assets: Fixed maturity securities available-for-sale: U.S. treasury $ 7,858 $ 7,858 U.S. government-sponsored agencies 290,057 290,057 Obligations of states and political subdivisions 282,307 282,307 Commercial mortgage-backed 75,314 75,314 Residential mortgage-backed 146,725 146,725 Other asset-backed 21,329 21,329 Corporate 424,482 424,482 Total fixed maturity securities available-for-sale 1,248,072 1,248,072 Equity investments, at fair value Common stocks: Financial services 48,647 48,647 Information technology 39,711 39,711 Healthcare 33,389 33,389 Consumer staples 13,302 13,302 Consumer discretionary 24,087 24,087 Energy 17,808 17,808 Industrials 23,943 23,943 Other 15,029 15,029 Non-redeemable preferred stocks 18,706 18,706 Investment funds 4,146 4,146 Total equity investments 238,768 238,768 Short-term investments 33,717 33,717 Liabilities: Surplus notes 25,000 15,145 December 31, 2017 Carrying Estimated ($ in thousands) Assets: Fixed maturity securities available-for-sale: U.S. treasury $ 8,078 $ 8,078 U.S. government-sponsored agencies 297,949 297,949 Obligations of states and political subdivisions 307,536 307,536 Commercial mortgage-backed 83,980 83,980 Residential mortgage-backed 119,799 119,799 Other asset-backed 24,114 24,114 Corporate 433,560 433,560 Total fixed maturity securities available-for-sale 1,275,016 1,275,016 Equity securities available-for-sale: Common stocks: Financial services 43,522 43,522 Information technology 35,810 35,810 Healthcare 30,595 30,595 Consumer staples 14,127 14,127 Consumer discretionary 20,538 20,538 Energy 16,905 16,905 Industrials 28,489 28,489 Other 16,421 16,421 Non-redeemable preferred stocks 21,708 21,708 Total equity securities available-for-sale 228,115 228,115 Short-term investments 23,613 23,613 Liabilities: Surplus notes 25,000 16,689 |
Summary of assets and liabilities measured on recurring and non-recurring basis | Presented in the tables below are the estimated fair values of the Company’s financial instruments as of September 30, 2018 and December 31, 2017 . September 30, 2018 Fair value measurements using ($ in thousands) Total Investments measured at net asset value (NAV) Quoted Significant Significant Financial instruments reported at fair value on recurring basis: Assets: Fixed maturity securities available-for-sale: U.S. treasury $ 7,858 $ — $ — $ 7,858 $ — U.S. government-sponsored agencies 290,057 — — 290,057 — Obligations of states and political subdivisions 282,307 — — 282,307 — Commercial mortgage-backed 75,314 — — 75,314 — Residential mortgage-backed 146,725 — — 146,725 — Other asset-backed 21,329 — — 21,329 — Corporate 424,482 — — 424,133 349 Total fixed maturity securities available-for-sale 1,248,072 — — 1,247,723 349 Equity investments, at fair value: Common stocks: Financial services 48,647 — 48,647 — — Information technology 39,711 — 39,711 — — Healthcare 33,389 — 33,389 — — Consumer staples 13,302 — 13,302 — — Consumer discretionary 24,087 — 24,087 — — Energy 17,808 — 17,808 — — Industrials 23,943 — 23,943 — — Other 15,029 — 15,029 — — Non-redeemable preferred stocks 18,706 — 9,093 9,613 — Investment funds 4,146 4,146 — — — Total equity investments 238,768 4,146 225,009 9,613 — Short-term investments 33,717 — 33,717 — — Financial instruments not reported at fair value: Liabilities: Surplus notes 15,145 — — — 15,145 December 31, 2017 Fair value measurements using ($ in thousands) Total Investments measured at net asset value (NAV) Quoted Significant Significant Financial instruments reported at fair value on recurring basis: Assets: Fixed maturity securities available-for-sale: U.S. treasury $ 8,078 $ — $ — $ 8,078 $ — U.S. government-sponsored agencies 297,949 — — 297,949 — Obligations of states and political subdivisions 307,536 — — 307,536 — Commercial mortgage-backed 83,980 — — 83,980 — Residential mortgage-backed 119,799 — — 119,799 — Other asset-backed 24,114 — — 24,114 — Corporate 433,560 — — 432,940 620 Total fixed maturity securities available-for-sale 1,275,016 — — 1,274,396 620 Equity securities available-for-sale: Common stocks: Financial services 43,522 — 43,519 — 3 Information technology 35,810 — 35,810 — — Healthcare 30,595 — 30,595 — — Consumer staples 14,127 — 14,127 — — Consumer discretionary 20,538 — 20,538 — — Energy 16,905 — 16,905 — — Industrials 28,489 — 28,489 — — Other 16,421 — 16,421 — — Non-redeemable preferred stocks 21,708 — 9,512 10,196 2,000 Total equity securities available-for-sale 228,115 — 215,916 10,196 2,003 Short-term investments 23,613 — 23,613 — — Financial instruments not reported at fair value: Liabilities: Surplus notes 16,689 — — — 16,689 |
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 three and nine months ended September 30, 2018 and 2017 . Any unrealized gains or losses on fixed maturity securities are recognized in other comprehensive income (loss). Any gains or losses from settlements, disposals, impairments and, starting in 2018, unrealized gains or losses on equity securities are reported as realized investment gains or losses in net income. ($ in thousands) Fair value measurements using significant unobservable (Level 3) inputs Three months ended September 30, 2018 Fixed maturity securities available-for-sale, corporate Equity securities, Total Beginning balance $ 474 $ — $ 474 Settlements (125 ) — (125 ) Balance at September 30, 2018 $ 349 $ — $ 349 Nine months ended September 30, 2018 Beginning balance $ 620 $ 3 $ 623 Settlements (270 ) — (270 ) Unrealized losses included in net income — (3 ) (3 ) Unrealized losses included in other comprehensive income (loss) on securities still held at reporting date (1 ) — (1 ) Balance at September 30, 2018 $ 349 $ — $ 349 ($ in thousands) Fair value measurements using significant Three months ended September 30, 2017 Fixed maturity securities available-for-sale, corporate Equity securities available-for-sale, financial services Equity securities available-for-sale, non-redeemable preferred stocks Total Beginning balance $ 840 $ 3 $ 2,000 $ 2,843 Settlements (125 ) — — (125 ) Unrealized losses included in other comprehensive income (loss) on securities still held at reporting date (1 ) — — (1 ) Balance at September 30, 2017 $ 714 $ 3 $ 2,000 $ 2,717 Nine months ended September 30, 2017 Beginning balance $ 982 $ 3 $ 2,000 $ 2,985 Settlements (265 ) — — (265 ) Unrealized losses included in other comprehensive income (loss) on securities still held at reporting date (3 ) — — (3 ) Balance at September 30, 2017 $ 714 $ 3 $ 2,000 $ 2,717 |
INVESTMENTS (Tables)
INVESTMENTS (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
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 September 30, 2018 and December 31, 2017 are as follows. All fixed maturity securities are classified as available-for-sale and are carried at fair value. September 30, 2018 Amortized Gross Gross Estimated ($ in thousands) Securities available-for-sale: Fixed maturity securities: U.S. treasury $ 8,133 $ — $ 275 $ 7,858 U.S. government-sponsored agencies 305,159 — 15,102 290,057 Obligations of states and political subdivisions 274,342 8,773 808 282,307 Commercial mortgage-backed 78,943 209 3,838 75,314 Residential mortgage-backed 149,847 1,925 5,047 146,725 Other asset-backed 22,165 313 1,149 21,329 Corporate 426,386 2,698 4,602 424,482 Total fixed maturity securities $ 1,264,975 $ 13,918 $ 30,821 $ 1,248,072 December 31, 2017 Amortized Gross Gross Estimated ($ in thousands) Securities available-for-sale: Fixed maturity securities: U.S. treasury $ 8,115 $ — $ 37 $ 8,078 U.S. government-sponsored agencies 303,932 122 6,105 297,949 Obligations of states and political subdivisions 290,038 17,729 231 307,536 Commercial mortgage-backed 84,058 591 669 83,980 Residential mortgage-backed 120,554 2,479 3,234 119,799 Other asset-backed 23,934 625 445 24,114 Corporate 422,535 11,490 465 433,560 Total fixed maturity securities 1,253,166 33,036 11,186 1,275,016 Equity securities: Common stocks: Financial services 30,103 13,594 175 43,522 Information technology 18,308 17,504 2 35,810 Healthcare 18,877 11,876 158 30,595 Consumer staples 9,275 4,917 65 14,127 Consumer discretionary 10,935 9,640 37 20,538 Energy 12,441 5,381 917 16,905 Industrials 12,746 15,757 14 28,489 Other 11,058 5,363 — 16,421 Non-redeemable preferred stocks 20,531 1,216 39 21,708 Total equity securities 144,274 85,248 1,407 228,115 Total securities available-for-sale $ 1,397,440 $ 118,284 $ 12,593 $ 1,503,131 |
Estimated fair value and gross unrealized losses associated with investment securities | The following tables set forth the estimated fair values and gross unrealized losses associated with investment securities that were in an unrealized loss position recognized in accumulated other comprehensive income as of September 30, 2018 and December 31, 2017 , listed by length of time the securities were consistently in an unrealized loss position. September 30, 2018 Less than twelve months Twelve months or longer Total ($ in thousands) Fair Unrealized Fair Unrealized Fair Unrealized Securities available-for-sale: Fixed maturity securities: U.S. treasury $ 7,621 $ 263 $ 237 $ 12 $ 7,858 $ 275 U.S. government-sponsored agencies 145,814 5,252 144,243 9,850 290,057 15,102 Obligations of states and political subdivisions 21,833 185 11,881 623 33,714 808 Commercial mortgage-backed 43,343 2,014 24,829 1,824 68,172 3,838 Residential mortgage-backed 89,534 2,439 33,240 2,608 122,774 5,047 Other asset-backed 4,969 124 11,985 1,025 16,954 1,149 Corporate 217,534 4,020 11,856 582 229,390 4,602 Total fixed maturity securities $ 530,648 $ 14,297 $ 238,271 $ 16,524 $ 768,919 $ 30,821 December 31, 2017 Less than twelve months Twelve months or longer Total ($ in thousands) Fair Unrealized Fair Unrealized Fair Unrealized Securities available-for-sale: Fixed maturity securities: U.S. treasury $ 8,078 $ 37 $ — $ — $ 8,078 $ 37 U.S. government-sponsored agencies 134,284 1,491 127,604 4,614 261,888 6,105 Obligations of states and political subdivisions — — 14,416 231 14,416 231 Commercial mortgage-backed 32,155 221 8,530 448 40,685 669 Residential mortgage-backed 30,003 394 22,948 2,840 52,951 3,234 Other asset-backed — — 13,440 445 13,440 445 Corporate 28,314 329 4,047 136 32,361 465 Total fixed maturity securities 232,834 2,472 190,985 8,714 423,819 11,186 Equity securities: Common stocks: Financial services 4,391 175 — — 4,391 175 Information technology 344 2 — — 344 2 Healthcare 2,532 158 — — 2,532 158 Consumer staples 575 65 — — 575 65 Consumer discretionary 992 37 — — 992 37 Energy 3,181 917 — — 3,181 917 Industrials 3,016 14 — — 3,016 14 Non-redeemable preferred stocks — — 1,961 39 1,961 39 Total equity securities 15,031 1,368 1,961 39 16,992 1,407 Total temporarily impaired securities $ 247,865 $ 3,840 $ 192,946 $ 8,753 $ 440,811 $ 12,593 |
Amortized cost and estimated fair value of fixed maturity securities | The amortized cost and estimated fair values of fixed maturity securities at September 30, 2018 , 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. ($ in thousands) Amortized Estimated Securities available-for-sale: Due in one year or less $ 40,384 $ 40,719 Due after one year through five years 224,706 225,537 Due after five years through ten years 365,415 360,172 Due after ten years 404,097 398,067 Securities not due at a single maturity date 230,373 223,577 Totals $ 1,264,975 $ 1,248,072 |
Summary of realized investment gains and (losses) | A summary of realized investment gains and (losses) and the change in unrealized investment gains on equity investments is as follows: Three months ended September 30, Nine months ended September 30, ($ in thousands) 2018 2017 2018 2017 Fixed maturity securities available-for-sale: Gross realized investment gains $ 90 $ 29 $ 324 $ 408 Gross realized investment losses (1,050 ) (230 ) (7,018 ) (2,316 ) Equity securities: Net realized investment gains, excluding 4,325 961 8,520 9,763 Change in unrealized investment gains 9,502 XXXX (799 ) XXXX "Other-than-temporary" impairments XXXX (355 ) XXXX (1,088 ) Other long-term investments, net (1,732 ) (999 ) (1,145 ) (4,601 ) Totals $ 11,135 $ (594 ) $ (118 ) $ 2,166 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE INCOME (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
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 (loss), net of tax. Accumulated other comprehensive income (loss) by component Unrealized Unrecognized pension and postretirement benefit obligations ($ in thousands) Net actuarial loss Prior service credit Total Total Balance at December 31, 2017 $ 83,497 $ (13,074 ) $ 12,961 $ (113 ) $ 83,384 Cumulative adjustment for adoption of financial instruments recognition and measurement changes (66,234 ) — — — (66,234 ) Other comprehensive income (loss) before reclassifications (35,903 ) — — — (35,903 ) Amounts reclassified from accumulated other comprehensive income (loss) 5,288 250 (1,867 ) (1,617 ) 3,671 Other comprehensive income (loss) (30,615 ) 250 (1,867 ) (1,617 ) (32,232 ) Balance at September 30, 2018 $ (13,352 ) $ (12,824 ) $ 11,094 $ (1,730 ) $ (15,082 ) Accumulated other comprehensive income (loss) by component Unrealized Unrecognized pension and postretirement benefit obligations ($ in thousands) Net actuarial loss Prior service credit Total Total Balance at December 31, 2016 $ 49,748 $ (16,299 ) $ 12,632 $ (3,667 ) $ 46,081 Other comprehensive income (loss) before reclassifications 23,460 — — — 23,460 Amounts reclassified from accumulated other comprehensive income (loss) (4,399 ) 719 (1,535 ) (816 ) (5,215 ) Other comprehensive income (loss) 19,061 719 (1,535 ) (816 ) 18,245 Balance at September 30, 2017 $ 68,809 $ (15,580 ) $ 11,097 $ (4,483 ) $ 64,326 |
Amounts reclassified out of accumulated other comprehensive income (loss) | The following tables display amounts reclassified out of accumulated other comprehensive income and into net income during the three and nine months ended September 30, 2018 and 2017 , respectively. ($ in thousands) Amounts reclassified from accumulated other comprehensive income (loss) Accumulated other comprehensive Three months ended Nine months ended Affected line item in the Unrealized gains (losses) on investments: Reclassification adjustment for net realized investment gains (losses) included in net income $ (960 ) $ (6,694 ) Net realized investment gains (losses) and, beginning in 2018, change in unrealized investment gains on equity investments Deferred income tax (expense) benefit 202 1,406 Total income tax expense (benefit) Net reclassification adjustment (758 ) (5,288 ) Net income Unrecognized pension and postretirement benefit obligations: Reclassification adjustment for amounts amortized into net periodic pension and postretirement benefit income: Net actuarial loss (106 ) (316 ) (1) Prior service credit 788 2,363 (1) Total before tax 682 2,047 Deferred income tax (expense) benefit (143 ) (430 ) Net reclassification adjustment 539 1,617 Total reclassification adjustment $ (219 ) $ (3,671 ) (1) These reclassified components of accumulated other comprehensive income are included in the computation of net periodic pension and postretirement benefit income (see note 7, Employee Retirement Plans, for additional details). ($ in thousands) Amounts reclassified from accumulated other comprehensive income (loss) Accumulated other comprehensive Three months ended September 30, 2017 Nine months ended September 30, 2017 Affected line item in the Unrealized gains (losses) on investments: Reclassification adjustment for net realized investment gains (losses) included in net income $ 405 $ 6,767 Net realized investment gains (losses) and, beginning in 2018, change in unrealized investment gains on equity investments Deferred income tax (expense) benefit (141 ) (2,368 ) Total income tax expense (benefit) Net reclassification adjustment 264 4,399 Net income Unrecognized pension and postretirement benefit obligations: Reclassification adjustment for amounts amortized into net periodic pension and postretirement benefit income: Net actuarial loss (370 ) (1,107 ) (1) Prior service credit 787 2,362 (1) Total before tax 417 1,255 Deferred income tax (expense) benefit (146 ) (439 ) Net reclassification adjustment 271 816 Total reclassification adjustment $ 535 $ 5,215 (1) These reclassified components of accumulated other comprehensive income are included in the computation of net periodic pension and postretirement benefit income (see note 7, Employee Retirement Plans, for additional details). |
BASIS OF PRESENTATION (Details)
BASIS OF PRESENTATION (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Cumulative adjustment for adoption of financial instruments recognition and measurement changes | $ 0 | $ 0 | ||
Defined benefit plan net periodic benefit cost other than service cost component | 1,900 | $ 1,300 | 5,600 | $ 3,800 |
Retained Earnings [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Cumulative adjustment for adoption of financial instruments recognition and measurement changes | $ 66,234 | $ 66,234 |
TRANSACTIONS WITH AFFILIATES (D
TRANSACTIONS WITH AFFILIATES (Details) - Affiliated Entity [Member] $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||||||
Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Dec. 31, 2018USD ($)Plan | Jun. 30, 2018USD ($)Plan | Dec. 31, 2017USD ($)Plan | Jun. 30, 2017USD ($)Plan | Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Dec. 31, 2018USD ($)Plan | Dec. 31, 2017USD ($)Plan | |
Related Party Transaction [Line Items] | ||||||||||
Ceded premiums earned | $ 102,852 | $ 98,449 | $ 306,193 | $ 298,108 | ||||||
Ceded losses and settlement expenses incurred | 52,070 | 75,248 | 166,748 | 227,404 | ||||||
Property and casualty insurance [Member] | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Number of reinsurance program treaties | Plan | 1 | 1 | 1 | 1 | 2 | 2 | ||||
Ceded premiums earned | 101,540 | 97,237 | 302,256 | 294,471 | ||||||
Ceded losses and settlement expenses incurred | 53,997 | 66,279 | 169,137 | 218,425 | ||||||
Property and casualty insurance [Member] | Annual Aggregate Catastrophe Excess of Loss [Member] | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Catastrophe claims, retention amount | $ 15,000 | $ 22,000 | $ 15,000 | $ 20,000 | ||||||
Affiliated reinsurance contract first layer limit | 12,000 | 24,000 | 12,000 | 24,000 | ||||||
Ceded premiums earned | $ 1,400 | $ 6,000 | $ 1,400 | $ 6,000 | ||||||
Ceded losses and settlement expenses incurred | 2,391 | 3,534 | 3,175 | 20,108 | ||||||
Reinsurance [Member] | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Number of reinsurance program treaties | Plan | 2 | 2 | ||||||||
Ceded premiums earned | 1,312 | 1,212 | 3,937 | 3,637 | ||||||
Ceded losses and settlement expenses incurred | $ (1,927) | $ 8,969 | $ (2,389) | $ 8,979 | ||||||
Reinsurance [Member] | Per Occurrence Catastrophe Excess of Loss [Member] | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Catastrophe claims, retention amount | $ 10,000 | $ 10,000 | ||||||||
Affiliated reinsurance contract first layer limit | $ 10,000 | $ 10,000 | ||||||||
First layer excess of loss coinsurance percentage (in hundreths) | 20.00% | 20.00% | ||||||||
Ceded premiums earned | $ 1,600 | $ 1,700 | ||||||||
Reinsurance [Member] | Annual Aggregate Catastrophe Excess of Loss [Member] | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Catastrophe claims, retention amount | 20,000 | 20,000 | ||||||||
Affiliated reinsurance contract first layer limit | $ 100,000 | $ 100,000 | ||||||||
First layer excess of loss coinsurance percentage (in hundreths) | 20.00% | 20.00% | ||||||||
Ceded premiums earned | $ 3,600 | $ 3,200 | ||||||||
Catastrophe event minimum amount | $ 500 | $ 500 |
REINSURANCE (Details)
REINSURANCE (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Premiums written | ||||
Net premiums written | $ 192,685 | $ 180,534 | $ 513,869 | $ 480,554 |
Premiums earned | ||||
Net premiums earned | 163,708 | 155,190 | 477,440 | 449,514 |
Losses and settlement expenses incurred | ||||
Net losses and settlement expenses incurred | 111,277 | 119,576 | 340,996 | 323,089 |
Affiliated Entity [Member] | ||||
Premiums written | ||||
Assumed | 159,648 | 153,900 | 430,699 | 415,426 |
Ceded | (128,739) | (124,567) | (335,947) | (323,096) |
Premiums earned | ||||
Assumed | 133,781 | 128,325 | 394,697 | 375,601 |
Ceded | (102,852) | (98,449) | (306,193) | (298,108) |
Losses and settlement expenses incurred | ||||
Assumed | 88,303 | 81,324 | 270,580 | 259,111 |
Ceded | (52,070) | (75,248) | (166,748) | (227,404) |
Non Affiliated Entity [Member] | ||||
Premiums written | ||||
Direct | 126,737 | 122,665 | 325,360 | 312,809 |
Assumed | 43,349 | 40,288 | 126,004 | 111,598 |
Ceded | (8,310) | (11,752) | (32,247) | (36,183) |
Premiums earned | ||||
Direct | 100,850 | 96,547 | 295,606 | 287,821 |
Assumed | 42,145 | 39,688 | 125,896 | 113,933 |
Ceded | (10,216) | (10,921) | (32,566) | (29,733) |
Losses and settlement expenses incurred | ||||
Direct | 51,606 | 62,745 | 165,962 | 198,317 |
Assumed | 32,417 | 58,229 | 87,647 | 107,091 |
Ceded | $ (8,979) | $ (7,474) | $ (16,445) | $ (14,026) |
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% | 30.00% |
Premiums written | ||||
Net premiums written | $ 152,787 | $ 144,011 | $ 404,257 | $ 385,209 |
Premiums earned | ||||
Net premiums earned | 126,213 | 120,472 | 366,340 | 350,307 |
Losses and settlement expenses incurred | ||||
Net losses and settlement expenses incurred | 81,435 | 74,039 | 259,191 | 231,067 |
Property and casualty insurance [Member] | Affiliated Entity [Member] | ||||
Premiums written | ||||
Assumed | 159,648 | 153,900 | 430,699 | 415,426 |
Ceded | (127,427) | (123,355) | (332,010) | (319,459) |
Premiums earned | ||||
Assumed | 133,781 | 128,325 | 394,697 | 375,601 |
Ceded | (101,540) | (97,237) | (302,256) | (294,471) |
Losses and settlement expenses incurred | ||||
Assumed | 87,992 | 81,047 | 269,672 | 258,169 |
Ceded | (53,997) | (66,279) | (169,137) | (218,425) |
Property and casualty insurance [Member] | Non Affiliated Entity [Member] | ||||
Premiums written | ||||
Direct | 126,737 | 122,665 | 325,360 | 312,809 |
Assumed | 1,138 | 1,333 | 3,440 | 3,542 |
Ceded | (7,309) | (10,532) | (23,232) | (27,109) |
Premiums earned | ||||
Direct | 100,850 | 96,547 | 295,606 | 287,821 |
Assumed | 1,017 | 1,225 | 3,319 | 3,370 |
Ceded | (7,895) | (8,388) | (25,026) | (22,014) |
Losses and settlement expenses incurred | ||||
Direct | 51,606 | 62,745 | 165,962 | 198,317 |
Assumed | 1,039 | 961 | 2,801 | 2,406 |
Ceded | (5,205) | (4,435) | (10,107) | (9,400) |
Reinsurance [Member] | ||||
Premiums written | ||||
Net premiums written | 39,898 | 36,523 | 109,612 | 95,345 |
Premiums earned | ||||
Net premiums earned | 37,495 | 34,718 | 111,100 | 99,207 |
Losses and settlement expenses incurred | ||||
Net losses and settlement expenses incurred | 29,842 | 45,537 | 81,805 | 92,022 |
Reinsurance [Member] | Affiliated Entity [Member] | ||||
Premiums written | ||||
Assumed | 0 | 0 | 0 | 0 |
Ceded | (1,312) | (1,212) | (3,937) | (3,637) |
Premiums earned | ||||
Assumed | 0 | 0 | 0 | 0 |
Ceded | (1,312) | (1,212) | (3,937) | (3,637) |
Losses and settlement expenses incurred | ||||
Assumed | 311 | 277 | 908 | 942 |
Ceded | 1,927 | (8,969) | 2,389 | (8,979) |
Reinsurance [Member] | Non Affiliated Entity [Member] | ||||
Premiums written | ||||
Direct | 0 | 0 | 0 | 0 |
Assumed | 42,211 | 38,955 | 122,564 | 108,056 |
Ceded | (1,001) | (1,220) | (9,015) | (9,074) |
Premiums earned | ||||
Direct | 0 | 0 | 0 | 0 |
Assumed | 41,128 | 38,463 | 122,577 | 110,563 |
Ceded | (2,321) | (2,533) | (7,540) | (7,719) |
Losses and settlement expenses incurred | ||||
Direct | 0 | 0 | 0 | 0 |
Assumed | 31,378 | 57,268 | 84,846 | 104,685 |
Ceded | $ (3,774) | $ (3,039) | $ (6,338) | $ (4,626) |
LIABILITY FOR LOSSES AND SETTEL
LIABILITY FOR LOSSES AND SETTELEMT EXPENSES (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Reconciliation of beginning and ending reserves for losses and settlement expenses [Roll Forward] | ||
Gross reserves at beginning of year | $ 732,612 | $ 690,532 |
Re-valuation due to foreign currency exchange rates | 525 | (1,913) |
Less ceded reserves at beginning of year | 30,923 | 20,664 |
Net reserves at beginning of year | 701,164 | 671,781 |
Incurred losses and settlement expenses related to: | ||
Current year | 352,992 | 340,706 |
Prior years | (11,996) | (17,617) |
Total incurred losses and settlement expenses | 340,996 | 323,089 |
Paid losses and settlement expenses related to: | ||
Current year | 119,399 | 120,053 |
Prior years | 193,673 | 173,986 |
Total paid losses and settlement expenses | 313,072 | 294,039 |
Net reserves at end of period | 729,088 | 700,831 |
Plus ceded reserves at end of period | 32,661 | 25,348 |
Re-valuation due to foreign currency exchange rates | (168) | 282 |
Gross reserves at end of period | 761,581 | 726,461 |
Property and casualty insurance [Member] | ||
Incurred losses and settlement expenses related to: | ||
Prior years | $ (12,500) | $ (15,600) |
Percentage change in loss and settlement expense reserves for prior accident years (in hundredths) | (2.50%) | (3.20%) |
Reinsurance [Member] | ||
Incurred losses and settlement expenses related to: | ||
Prior years | $ 493 | $ (2,100) |
Percentage change in loss and settlement expense reserves for prior accident years (in hundredths) | 0.20% | (1.00%) |
SEGMENT INFORMATION - Summarize
SEGMENT INFORMATION - Summarized financial information by segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Reconciliation of operating profit loss from segment to consolidated | |||||
Premiums earned | $ 163,708 | $ 155,190 | $ 477,440 | $ 449,514 | |
SAP underwriting profit (loss) | (706) | (16,437) | (24,656) | (24,458) | |
GAAP adjustments | 776 | 4,776 | 2,206 | 3,359 | |
GAAP underwriting profit (loss) | 70 | (11,661) | (22,450) | (21,099) | |
Net investment income | 11,951 | 11,501 | 35,100 | 33,679 | |
Net realized investment gains (losses) and, beginning in 2018, change in unrealized investment gains on equity investments | 11,135 | (594) | (118) | 2,166 | |
Other income (loss) | 2,331 | 1,099 | 6,719 | 3,000 | |
Interest expense | 170 | 84 | 483 | 253 | |
Other expenses | 873 | 701 | 2,574 | 2,264 | |
Income (loss) before income tax expense (benefit) | 24,444 | (440) | 16,194 | 15,229 | |
Reconciliation of assets from segment to consolidated | |||||
Assets | 2,268,896 | 2,268,896 | $ 2,289,419 | ||
Eliminations | (564,796) | (564,796) | (599,036) | ||
Reclassifications | (2,998) | (2,998) | (8,443) | ||
Total assets | 1,701,102 | 1,701,102 | 1,681,940 | ||
Property and casualty insurance [Member] | |||||
Reconciliation of operating profit loss from segment to consolidated | |||||
Premiums earned | 126,213 | 120,472 | 366,340 | 350,307 | |
SAP underwriting profit (loss) | 138 | 1,927 | (29,082) | (9,559) | |
GAAP adjustments | 378 | 4,582 | 2,561 | 4,301 | |
GAAP underwriting profit (loss) | 516 | 6,509 | (26,521) | (5,258) | |
Net investment income | 8,514 | 8,252 | 25,072 | 24,225 | |
Net realized investment gains (losses) and, beginning in 2018, change in unrealized investment gains on equity investments | 6,760 | (108) | (1,225) | 3,033 | |
Other income (loss) | 2,184 | 1,457 | 6,330 | 4,457 | |
Interest expense | 170 | 84 | 483 | 253 | |
Other expenses | 282 | 170 | 759 | 580 | |
Income (loss) before income tax expense (benefit) | 17,522 | 15,856 | 2,414 | 25,624 | |
Reconciliation of assets from segment to consolidated | |||||
Assets | 1,212,964 | 1,212,964 | 1,200,636 | ||
Eliminations | 0 | 0 | 0 | ||
Reclassifications | (2,880) | (2,880) | (1,393) | ||
Total assets | 1,210,084 | 1,210,084 | 1,199,243 | ||
Reinsurance [Member] | |||||
Reconciliation of operating profit loss from segment to consolidated | |||||
Premiums earned | 37,495 | 34,718 | 111,100 | 99,207 | |
SAP underwriting profit (loss) | (844) | (18,364) | 4,426 | (14,899) | |
GAAP adjustments | 398 | 194 | (355) | (942) | |
GAAP underwriting profit (loss) | (446) | (18,170) | 4,071 | (15,841) | |
Net investment income | 3,423 | 3,237 | 10,001 | 9,421 | |
Net realized investment gains (losses) and, beginning in 2018, change in unrealized investment gains on equity investments | 4,476 | (486) | 1,208 | (867) | |
Other income (loss) | 147 | (358) | 389 | (1,457) | |
Interest expense | 0 | 0 | 0 | 0 | |
Other expenses | 0 | 0 | 0 | 0 | |
Income (loss) before income tax expense (benefit) | 7,600 | (15,777) | 15,669 | (8,744) | |
Reconciliation of assets from segment to consolidated | |||||
Assets | 481,047 | 481,047 | 484,678 | ||
Eliminations | 0 | 0 | 0 | ||
Reclassifications | 0 | 0 | (6,273) | ||
Total assets | 481,047 | 481,047 | 478,405 | ||
Parent company [Member] | |||||
Reconciliation of operating profit loss from segment to consolidated | |||||
Premiums earned | 0 | 0 | 0 | 0 | |
SAP underwriting profit (loss) | 0 | 0 | 0 | 0 | |
GAAP adjustments | 0 | 0 | 0 | 0 | |
GAAP underwriting profit (loss) | 0 | 0 | 0 | 0 | |
Net investment income | 14 | 12 | 27 | 33 | |
Net realized investment gains (losses) and, beginning in 2018, change in unrealized investment gains on equity investments | (101) | 0 | (101) | 0 | |
Other income (loss) | 0 | 0 | 0 | 0 | |
Interest expense | 0 | 0 | 0 | 0 | |
Other expenses | 591 | 531 | 1,815 | 1,684 | |
Income (loss) before income tax expense (benefit) | (678) | $ (519) | (1,889) | $ (1,651) | |
Reconciliation of assets from segment to consolidated | |||||
Assets | 574,885 | 574,885 | 604,105 | ||
Eliminations | (564,796) | (564,796) | (599,036) | ||
Reclassifications | (118) | (118) | (777) | ||
Total assets | $ 9,971 | $ 9,971 | $ 4,292 |
SEGMENT INFORMATION - Net premi
SEGMENT INFORMATION - Net premiums earned by segment and lines of insurance (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Revenue from External Customer [Line Items] | ||||
Premiums earned | $ 163,708 | $ 155,190 | $ 477,440 | $ 449,514 |
Property and casualty insurance [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Premiums earned | 126,213 | 120,472 | 366,340 | 350,307 |
Property and casualty insurance [Member] | Commercial Lines [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Premiums earned | 116,138 | 110,781 | 337,328 | 322,132 |
Property and casualty insurance [Member] | Commercial Lines [Member] | Automobile Insurance L O B [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Premiums earned | 32,851 | 30,229 | 95,155 | 87,275 |
Property and casualty insurance [Member] | Commercial Lines [Member] | Property Insurance L O B [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Premiums earned | 25,271 | 27,980 | 79,059 | 79,551 |
Property and casualty insurance [Member] | Commercial Lines [Member] | Workers' Compensation [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Premiums earned | 24,249 | 25,373 | 74,380 | 75,419 |
Property and casualty insurance [Member] | Commercial Lines [Member] | Other Liability [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Premiums earned | 31,399 | 24,996 | 81,952 | 73,378 |
Property and casualty insurance [Member] | Commercial Lines [Member] | Other Insurance L O B [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Premiums earned | 2,368 | 2,203 | 6,782 | 6,509 |
Property and casualty insurance [Member] | Personal Lines [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Premiums earned | 10,075 | 9,691 | 29,012 | 28,175 |
Reinsurance [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Premiums earned | 37,495 | 34,718 | 111,100 | 99,207 |
Reinsurance [Member] | Assumed Pro Rata [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Premiums earned | 10,484 | 10,730 | 33,627 | 33,181 |
Reinsurance [Member] | Assumed Excess of Loss [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Premiums earned | $ 27,011 | $ 23,988 | $ 77,473 | $ 66,026 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Income tax expense (benefit) reconciliation [Abstract] | |||||
United States federal corporate tax rate (in hundredths) | 21.00% | 35.00% | 21.00% | 35.00% | |
Computed expected income tax expense (benefit) | $ 5,134 | $ (154) | $ 3,401 | $ 5,330 | |
Increases (decreases) in tax resulting from: | |||||
Incremental benefit of net operating loss carry back | 839 | 0 | 0 | 0 | |
Tax-exempt interest income | (290) | (656) | (897) | (2,122) | |
Dividends received deduction | (126) | (294) | (400) | (948) | |
Proration of tax-exempt interest and dividends received deduction | 104 | 142 | 324 | 460 | |
Other, net | (365) | (224) | (311) | (545) | |
Total income tax expense (benefit) | 5,296 | $ (1,186) | 2,117 | $ 2,175 | |
Provision for uncertain tax positions | $ 0 | $ 0 | $ 0 |
EMPLOYEE RETIREMENT PLANS (Deta
EMPLOYEE RETIREMENT PLANS (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Pension plans [Member] | Emc Insurance Companies [Member] | ||||
Components of net periodic benefit cost [Abstract] | ||||
Service cost | $ 4,213 | $ 3,783 | $ 12,639 | $ 11,351 |
Interest cost | 2,681 | 2,798 | 8,044 | 8,393 |
Expected return on plan assets | (6,013) | (5,192) | (18,039) | (15,574) |
Amortization of net actuarial loss | 135 | 911 | 403 | 2,732 |
Amortization of prior service cost (credit) | 0 | 5 | 0 | 15 |
Net periodic benefit cost (income) | 1,016 | 2,305 | 3,047 | 6,917 |
Pension plans [Member] | EMC Insurance Group, Inc. [Member] | ||||
Components of net periodic benefit cost [Abstract] | ||||
Net periodic benefit cost (income) | 305 | 692 | 914 | 2,075 |
Postretirement benefit plans [Member] | Emc Insurance Companies [Member] | ||||
Components of net periodic benefit cost [Abstract] | ||||
Service cost | 369 | 341 | 1,105 | 1,022 |
Interest cost | 521 | 570 | 1,563 | 1,710 |
Expected return on plan assets | (1,204) | (1,077) | (3,611) | (3,233) |
Amortization of net actuarial loss | 234 | 342 | 701 | 1,028 |
Amortization of prior service cost (credit) | (2,783) | (2,788) | (8,347) | (8,365) |
Net periodic benefit cost (income) | (2,863) | (2,612) | (8,589) | (7,838) |
Postretirement benefit plans [Member] | EMC Insurance Group, Inc. [Member] | ||||
Components of net periodic benefit cost [Abstract] | ||||
Net periodic benefit cost (income) | (806) | $ (736) | (2,418) | $ (2,208) |
Entity's share of estimated contributions to employee benefit plan | $ 0 | $ 0 |
STOCK-BASED COMPENSATION (Detai
STOCK-BASED COMPENSATION (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Recognized compensation expense | $ 224 | $ 296 | $ 830 | $ 508 |
Recognized compensation expense, net of tax | $ 177 | $ 192 | $ 656 | $ 330 |
Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of restricted stock shares vested during period (in shares) | 92,214 | |||
Restricted Stock Units (RSUs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of restricted stock awards or units granted during period (in shares) | 120,439 | |||
Stock Option [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options exercised during period (in shares) | 79,946 | |||
Weighted average exercise price of options exercised during period (in dollars per share) | $ 14.53 | |||
Non-Employee Director [Member] | Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of restricted stock awards or units granted during period (in shares) | 2,800 | |||
Restricted Stock Awards Surrendered and Forfeited [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock repurchased and retired during period, shares | 30,523 | |||
Average cost per share of stock repurchased | $ 26.30 |
DISCLOSURES ABOUT THE FAIR VA_3
DISCLOSURES ABOUT THE FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018USD ($)Security | Dec. 31, 2017USD ($)Security | |
Assets [Abstract] | ||
Fixed maturity securities available-for-sale | $ 1,248,072 | $ 1,275,016 |
Equity investments, at fair value | 238,768 | |
Equity securities available-for-sale | 228,115 | |
Short-term investments | 33,717 | 23,613 |
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 | 2.73% | 1.35% |
Debt Securities [Member] | ||
Assets [Abstract] | ||
Fixed maturity securities available-for-sale | $ 1,248,072 | $ 1,275,016 |
Number of broker quoted securities | Security | 0 | 0 |
Number of securities not priced by independent pricing service | Security | 6 | 8 |
U.S. treasury | ||
Assets [Abstract] | ||
Fixed maturity securities available-for-sale | $ 7,858 | $ 8,078 |
U.S. government-sponsored agencies | ||
Assets [Abstract] | ||
Fixed maturity securities available-for-sale | 290,057 | 297,949 |
Obligations of states and political subdivisions | ||
Assets [Abstract] | ||
Fixed maturity securities available-for-sale | 282,307 | 307,536 |
Commercial mortgage-backed | ||
Assets [Abstract] | ||
Fixed maturity securities available-for-sale | 75,314 | 83,980 |
Residential mortgage-backed | ||
Assets [Abstract] | ||
Fixed maturity securities available-for-sale | 146,725 | 119,799 |
Other asset-backed | ||
Assets [Abstract] | ||
Fixed maturity securities available-for-sale | 21,329 | 24,114 |
Corporate | ||
Assets [Abstract] | ||
Fixed maturity securities available-for-sale | 424,482 | 433,560 |
Equity Securities [Member] | ||
Assets [Abstract] | ||
Equity securities available-for-sale | 228,115 | |
Financial services | ||
Assets [Abstract] | ||
Equity securities available-for-sale | 43,522 | |
Information technology | ||
Assets [Abstract] | ||
Equity securities available-for-sale | 35,810 | |
Healthcare | ||
Assets [Abstract] | ||
Equity securities available-for-sale | 30,595 | |
Consumer staples | ||
Assets [Abstract] | ||
Equity securities available-for-sale | 14,127 | |
Consumer discretionary | ||
Assets [Abstract] | ||
Equity securities available-for-sale | 20,538 | |
Energy | ||
Assets [Abstract] | ||
Equity securities available-for-sale | 16,905 | |
Industrials | ||
Assets [Abstract] | ||
Equity securities available-for-sale | 28,489 | |
Other | ||
Assets [Abstract] | ||
Equity securities available-for-sale | 16,421 | |
Non-redeemable preferred stocks | ||
Assets [Abstract] | ||
Equity securities available-for-sale | 21,708 | |
Carrying amount [Member] | ||
Assets [Abstract] | ||
Short-term investments | 33,717 | 23,613 |
Liabilities [Abstract] | ||
Surplus notes | 25,000 | 25,000 |
Carrying amount [Member] | Debt Securities [Member] | ||
Assets [Abstract] | ||
Fixed maturity securities available-for-sale | 1,248,072 | 1,275,016 |
Carrying amount [Member] | U.S. treasury | ||
Assets [Abstract] | ||
Fixed maturity securities available-for-sale | 7,858 | 8,078 |
Carrying amount [Member] | U.S. government-sponsored agencies | ||
Assets [Abstract] | ||
Fixed maturity securities available-for-sale | 290,057 | 297,949 |
Carrying amount [Member] | Obligations of states and political subdivisions | ||
Assets [Abstract] | ||
Fixed maturity securities available-for-sale | 282,307 | 307,536 |
Carrying amount [Member] | Commercial mortgage-backed | ||
Assets [Abstract] | ||
Fixed maturity securities available-for-sale | 75,314 | 83,980 |
Carrying amount [Member] | Residential mortgage-backed | ||
Assets [Abstract] | ||
Fixed maturity securities available-for-sale | 146,725 | 119,799 |
Carrying amount [Member] | Other asset-backed | ||
Assets [Abstract] | ||
Fixed maturity securities available-for-sale | 21,329 | 24,114 |
Carrying amount [Member] | Corporate | ||
Assets [Abstract] | ||
Fixed maturity securities available-for-sale | 424,482 | 433,560 |
Carrying amount [Member] | Equity Securities [Member] | ||
Assets [Abstract] | ||
Equity investments, at fair value | 238,768 | |
Equity securities available-for-sale | 228,115 | |
Carrying amount [Member] | Financial services | ||
Assets [Abstract] | ||
Equity investments, at fair value | 48,647 | |
Equity securities available-for-sale | 43,522 | |
Carrying amount [Member] | Information technology | ||
Assets [Abstract] | ||
Equity investments, at fair value | 39,711 | |
Equity securities available-for-sale | 35,810 | |
Carrying amount [Member] | Healthcare | ||
Assets [Abstract] | ||
Equity investments, at fair value | 33,389 | |
Equity securities available-for-sale | 30,595 | |
Carrying amount [Member] | Consumer staples | ||
Assets [Abstract] | ||
Equity investments, at fair value | 13,302 | |
Equity securities available-for-sale | 14,127 | |
Carrying amount [Member] | Consumer discretionary | ||
Assets [Abstract] | ||
Equity investments, at fair value | 24,087 | |
Equity securities available-for-sale | 20,538 | |
Carrying amount [Member] | Energy | ||
Assets [Abstract] | ||
Equity investments, at fair value | 17,808 | |
Equity securities available-for-sale | 16,905 | |
Carrying amount [Member] | Industrials | ||
Assets [Abstract] | ||
Equity investments, at fair value | 23,943 | |
Equity securities available-for-sale | 28,489 | |
Carrying amount [Member] | Other | ||
Assets [Abstract] | ||
Equity investments, at fair value | 15,029 | |
Equity securities available-for-sale | 16,421 | |
Carrying amount [Member] | Non-redeemable preferred stocks | ||
Assets [Abstract] | ||
Equity investments, at fair value | 18,706 | |
Equity securities available-for-sale | 21,708 | |
Carrying amount [Member] | Investment funds [Member] | ||
Assets [Abstract] | ||
Equity investments, at fair value | 4,146 | |
Estimated fair value [Member] | ||
Assets [Abstract] | ||
Short-term investments | 33,717 | 23,613 |
Liabilities [Abstract] | ||
Surplus notes | 15,145 | 16,689 |
Estimated fair value [Member] | Debt Securities [Member] | ||
Assets [Abstract] | ||
Fixed maturity securities available-for-sale | 1,248,072 | 1,275,016 |
Estimated fair value [Member] | U.S. treasury | ||
Assets [Abstract] | ||
Fixed maturity securities available-for-sale | 7,858 | 8,078 |
Estimated fair value [Member] | U.S. government-sponsored agencies | ||
Assets [Abstract] | ||
Fixed maturity securities available-for-sale | 290,057 | 297,949 |
Estimated fair value [Member] | Obligations of states and political subdivisions | ||
Assets [Abstract] | ||
Fixed maturity securities available-for-sale | 282,307 | 307,536 |
Estimated fair value [Member] | Commercial mortgage-backed | ||
Assets [Abstract] | ||
Fixed maturity securities available-for-sale | 75,314 | 83,980 |
Estimated fair value [Member] | Residential mortgage-backed | ||
Assets [Abstract] | ||
Fixed maturity securities available-for-sale | 146,725 | 119,799 |
Estimated fair value [Member] | Other asset-backed | ||
Assets [Abstract] | ||
Fixed maturity securities available-for-sale | 21,329 | 24,114 |
Estimated fair value [Member] | Corporate | ||
Assets [Abstract] | ||
Fixed maturity securities available-for-sale | 424,482 | 433,560 |
Estimated fair value [Member] | Equity Securities [Member] | ||
Assets [Abstract] | ||
Equity investments, at fair value | 238,768 | |
Equity securities available-for-sale | 228,115 | |
Estimated fair value [Member] | Financial services | ||
Assets [Abstract] | ||
Equity investments, at fair value | 48,647 | |
Equity securities available-for-sale | 43,522 | |
Estimated fair value [Member] | Information technology | ||
Assets [Abstract] | ||
Equity investments, at fair value | 39,711 | |
Equity securities available-for-sale | 35,810 | |
Estimated fair value [Member] | Healthcare | ||
Assets [Abstract] | ||
Equity investments, at fair value | 33,389 | |
Equity securities available-for-sale | 30,595 | |
Estimated fair value [Member] | Consumer staples | ||
Assets [Abstract] | ||
Equity investments, at fair value | 13,302 | |
Equity securities available-for-sale | 14,127 | |
Estimated fair value [Member] | Consumer discretionary | ||
Assets [Abstract] | ||
Equity investments, at fair value | 24,087 | |
Equity securities available-for-sale | 20,538 | |
Estimated fair value [Member] | Energy | ||
Assets [Abstract] | ||
Equity investments, at fair value | 17,808 | |
Equity securities available-for-sale | 16,905 | |
Estimated fair value [Member] | Industrials | ||
Assets [Abstract] | ||
Equity investments, at fair value | 23,943 | |
Equity securities available-for-sale | 28,489 | |
Estimated fair value [Member] | Other | ||
Assets [Abstract] | ||
Equity investments, at fair value | 15,029 | |
Equity securities available-for-sale | 16,421 | |
Estimated fair value [Member] | Non-redeemable preferred stocks | ||
Assets [Abstract] | ||
Equity investments, at fair value | 18,706 | |
Equity securities available-for-sale | $ 21,708 | |
Estimated fair value [Member] | Investment funds [Member] | ||
Assets [Abstract] | ||
Equity investments, at fair value | $ 4,146 |
DISCLOSURES ABOUT THE FAIR VA_4
DISCLOSURES ABOUT THE FAIR VALUE OF FINANCIAL INSTRUMENTS, Recurring Measurement Inputs (Details) $ in Thousands | Sep. 30, 2018USD ($)Security | Dec. 31, 2017USD ($)Security |
Assets [Abstract] | ||
Fixed maturity securities available-for-sale | $ 1,248,072 | $ 1,275,016 |
Equity investments, at fair value | 238,768 | |
Equity securities available-for-sale | 228,115 | |
Short-term investments | 33,717 | 23,613 |
Liabilities [Abstract] | ||
Surplus notes | 25,000 | 25,000 |
Debt Securities [Member] | ||
Assets [Abstract] | ||
Fixed maturity securities available-for-sale | 1,248,072 | 1,275,016 |
U.S. treasury | ||
Assets [Abstract] | ||
Fixed maturity securities available-for-sale | 7,858 | 8,078 |
U.S. government-sponsored agencies | ||
Assets [Abstract] | ||
Fixed maturity securities available-for-sale | 290,057 | 297,949 |
Obligations of states and political subdivisions | ||
Assets [Abstract] | ||
Fixed maturity securities available-for-sale | 282,307 | 307,536 |
Commercial mortgage-backed | ||
Assets [Abstract] | ||
Fixed maturity securities available-for-sale | 75,314 | 83,980 |
Residential mortgage-backed | ||
Assets [Abstract] | ||
Fixed maturity securities available-for-sale | 146,725 | 119,799 |
Other asset-backed | ||
Assets [Abstract] | ||
Fixed maturity securities available-for-sale | 21,329 | 24,114 |
Corporate | ||
Assets [Abstract] | ||
Fixed maturity securities available-for-sale | 424,482 | 433,560 |
Equity Securities [Member] | ||
Assets [Abstract] | ||
Equity securities available-for-sale | 228,115 | |
Financial services | ||
Assets [Abstract] | ||
Equity securities available-for-sale | 43,522 | |
Information technology | ||
Assets [Abstract] | ||
Equity securities available-for-sale | 35,810 | |
Healthcare | ||
Assets [Abstract] | ||
Equity securities available-for-sale | 30,595 | |
Consumer staples | ||
Assets [Abstract] | ||
Equity securities available-for-sale | 14,127 | |
Consumer discretionary | ||
Assets [Abstract] | ||
Equity securities available-for-sale | 20,538 | |
Energy | ||
Assets [Abstract] | ||
Equity securities available-for-sale | 16,905 | |
Industrials | ||
Assets [Abstract] | ||
Equity securities available-for-sale | 28,489 | |
Other | ||
Assets [Abstract] | ||
Equity securities available-for-sale | 16,421 | |
Non-redeemable preferred stocks | ||
Assets [Abstract] | ||
Equity securities available-for-sale | 21,708 | |
Recurring [Member] | ||
Assets [Abstract] | ||
Short-term investments | 33,717 | 23,613 |
Recurring [Member] | Debt Securities [Member] | ||
Assets [Abstract] | ||
Fixed maturity securities available-for-sale | 1,248,072 | 1,275,016 |
Recurring [Member] | U.S. treasury | ||
Assets [Abstract] | ||
Fixed maturity securities available-for-sale | 7,858 | 8,078 |
Recurring [Member] | U.S. government-sponsored agencies | ||
Assets [Abstract] | ||
Fixed maturity securities available-for-sale | 290,057 | 297,949 |
Recurring [Member] | Obligations of states and political subdivisions | ||
Assets [Abstract] | ||
Fixed maturity securities available-for-sale | 282,307 | 307,536 |
Recurring [Member] | Commercial mortgage-backed | ||
Assets [Abstract] | ||
Fixed maturity securities available-for-sale | 75,314 | 83,980 |
Recurring [Member] | Residential mortgage-backed | ||
Assets [Abstract] | ||
Fixed maturity securities available-for-sale | 146,725 | 119,799 |
Recurring [Member] | Other asset-backed | ||
Assets [Abstract] | ||
Fixed maturity securities available-for-sale | 21,329 | 24,114 |
Recurring [Member] | Corporate | ||
Assets [Abstract] | ||
Fixed maturity securities available-for-sale | 424,482 | 433,560 |
Recurring [Member] | Equity Securities [Member] | ||
Assets [Abstract] | ||
Equity investments, at fair value | 238,768 | |
Equity securities available-for-sale | 228,115 | |
Recurring [Member] | Financial services | ||
Assets [Abstract] | ||
Equity investments, at fair value | 48,647 | |
Equity securities available-for-sale | 43,522 | |
Recurring [Member] | Information technology | ||
Assets [Abstract] | ||
Equity investments, at fair value | 39,711 | |
Equity securities available-for-sale | 35,810 | |
Recurring [Member] | Healthcare | ||
Assets [Abstract] | ||
Equity investments, at fair value | 33,389 | |
Equity securities available-for-sale | 30,595 | |
Recurring [Member] | Consumer staples | ||
Assets [Abstract] | ||
Equity investments, at fair value | 13,302 | |
Equity securities available-for-sale | 14,127 | |
Recurring [Member] | Consumer discretionary | ||
Assets [Abstract] | ||
Equity investments, at fair value | 24,087 | |
Equity securities available-for-sale | 20,538 | |
Recurring [Member] | Energy | ||
Assets [Abstract] | ||
Equity investments, at fair value | 17,808 | |
Equity securities available-for-sale | 16,905 | |
Recurring [Member] | Industrials | ||
Assets [Abstract] | ||
Equity investments, at fair value | 23,943 | |
Equity securities available-for-sale | 28,489 | |
Recurring [Member] | Other | ||
Assets [Abstract] | ||
Equity investments, at fair value | 15,029 | |
Equity securities available-for-sale | 16,421 | |
Recurring [Member] | Non-redeemable preferred stocks | ||
Assets [Abstract] | ||
Equity investments, at fair value | 18,706 | |
Equity securities available-for-sale | 21,708 | |
Recurring [Member] | Investment funds [Member] | ||
Assets [Abstract] | ||
Equity investments, at fair value | 4,146 | |
Recurring [Member] | Investments measured at net asset value (NAV) | ||
Assets [Abstract] | ||
Short-term investments | 0 | 0 |
Recurring [Member] | Investments measured at net asset value (NAV) | Debt Securities [Member] | ||
Assets [Abstract] | ||
Fixed maturity securities available-for-sale | 0 | 0 |
Recurring [Member] | Investments measured at net asset value (NAV) | U.S. treasury | ||
Assets [Abstract] | ||
Fixed maturity securities available-for-sale | 0 | 0 |
Recurring [Member] | Investments measured at net asset value (NAV) | U.S. government-sponsored agencies | ||
Assets [Abstract] | ||
Fixed maturity securities available-for-sale | 0 | 0 |
Recurring [Member] | Investments measured at net asset value (NAV) | Obligations of states and political subdivisions | ||
Assets [Abstract] | ||
Fixed maturity securities available-for-sale | 0 | 0 |
Recurring [Member] | Investments measured at net asset value (NAV) | Commercial mortgage-backed | ||
Assets [Abstract] | ||
Fixed maturity securities available-for-sale | 0 | 0 |
Recurring [Member] | Investments measured at net asset value (NAV) | Residential mortgage-backed | ||
Assets [Abstract] | ||
Fixed maturity securities available-for-sale | 0 | 0 |
Recurring [Member] | Investments measured at net asset value (NAV) | Other asset-backed | ||
Assets [Abstract] | ||
Fixed maturity securities available-for-sale | 0 | 0 |
Recurring [Member] | Investments measured at net asset value (NAV) | Corporate | ||
Assets [Abstract] | ||
Fixed maturity securities available-for-sale | 0 | 0 |
Recurring [Member] | Investments measured at net asset value (NAV) | Equity Securities [Member] | ||
Assets [Abstract] | ||
Equity investments, at fair value | 4,146 | |
Equity securities available-for-sale | 0 | |
Recurring [Member] | Investments measured at net asset value (NAV) | Financial services | ||
Assets [Abstract] | ||
Equity investments, at fair value | 0 | |
Equity securities available-for-sale | 0 | |
Recurring [Member] | Investments measured at net asset value (NAV) | Information technology | ||
Assets [Abstract] | ||
Equity investments, at fair value | 0 | |
Equity securities available-for-sale | 0 | |
Recurring [Member] | Investments measured at net asset value (NAV) | Healthcare | ||
Assets [Abstract] | ||
Equity investments, at fair value | 0 | |
Equity securities available-for-sale | 0 | |
Recurring [Member] | Investments measured at net asset value (NAV) | Consumer staples | ||
Assets [Abstract] | ||
Equity investments, at fair value | 0 | |
Equity securities available-for-sale | 0 | |
Recurring [Member] | Investments measured at net asset value (NAV) | Consumer discretionary | ||
Assets [Abstract] | ||
Equity investments, at fair value | 0 | |
Equity securities available-for-sale | 0 | |
Recurring [Member] | Investments measured at net asset value (NAV) | Energy | ||
Assets [Abstract] | ||
Equity investments, at fair value | 0 | |
Equity securities available-for-sale | 0 | |
Recurring [Member] | Investments measured at net asset value (NAV) | Industrials | ||
Assets [Abstract] | ||
Equity investments, at fair value | 0 | |
Equity securities available-for-sale | 0 | |
Recurring [Member] | Investments measured at net asset value (NAV) | Other | ||
Assets [Abstract] | ||
Equity investments, at fair value | 0 | |
Equity securities available-for-sale | 0 | |
Recurring [Member] | Investments measured at net asset value (NAV) | Non-redeemable preferred stocks | ||
Assets [Abstract] | ||
Equity investments, at fair value | 0 | |
Equity securities available-for-sale | 0 | |
Recurring [Member] | Investments measured at net asset value (NAV) | Investment funds [Member] | ||
Assets [Abstract] | ||
Equity investments, at fair value | 4,146 | |
Recurring [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | ||
Assets [Abstract] | ||
Short-term investments | 33,717 | 23,613 |
Recurring [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | Debt Securities [Member] | ||
Assets [Abstract] | ||
Fixed maturity securities available-for-sale | 0 | 0 |
Recurring [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | U.S. treasury | ||
Assets [Abstract] | ||
Fixed maturity securities available-for-sale | 0 | 0 |
Recurring [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | U.S. government-sponsored agencies | ||
Assets [Abstract] | ||
Fixed maturity securities available-for-sale | 0 | 0 |
Recurring [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | Obligations of states and political subdivisions | ||
Assets [Abstract] | ||
Fixed maturity securities available-for-sale | 0 | 0 |
Recurring [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | Commercial mortgage-backed | ||
Assets [Abstract] | ||
Fixed maturity securities available-for-sale | 0 | 0 |
Recurring [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | Residential mortgage-backed | ||
Assets [Abstract] | ||
Fixed maturity securities available-for-sale | 0 | 0 |
Recurring [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | Other asset-backed | ||
Assets [Abstract] | ||
Fixed maturity securities available-for-sale | 0 | 0 |
Recurring [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | Corporate | ||
Assets [Abstract] | ||
Fixed maturity securities available-for-sale | 0 | 0 |
Recurring [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | Equity Securities [Member] | ||
Assets [Abstract] | ||
Equity investments, at fair value | 225,009 | |
Equity securities available-for-sale | 215,916 | |
Recurring [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | Financial services | ||
Assets [Abstract] | ||
Equity investments, at fair value | 48,647 | |
Equity securities available-for-sale | 43,519 | |
Recurring [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | Information technology | ||
Assets [Abstract] | ||
Equity investments, at fair value | 39,711 | |
Equity securities available-for-sale | 35,810 | |
Recurring [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | Healthcare | ||
Assets [Abstract] | ||
Equity investments, at fair value | 33,389 | |
Equity securities available-for-sale | 30,595 | |
Recurring [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | Consumer staples | ||
Assets [Abstract] | ||
Equity investments, at fair value | 13,302 | |
Equity securities available-for-sale | 14,127 | |
Recurring [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | Consumer discretionary | ||
Assets [Abstract] | ||
Equity investments, at fair value | 24,087 | |
Equity securities available-for-sale | 20,538 | |
Recurring [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | Energy | ||
Assets [Abstract] | ||
Equity investments, at fair value | 17,808 | |
Equity securities available-for-sale | 16,905 | |
Recurring [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | Industrials | ||
Assets [Abstract] | ||
Equity investments, at fair value | 23,943 | |
Equity securities available-for-sale | 28,489 | |
Recurring [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | Other | ||
Assets [Abstract] | ||
Equity investments, at fair value | 15,029 | |
Equity securities available-for-sale | 16,421 | |
Recurring [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | Non-redeemable preferred stocks | ||
Assets [Abstract] | ||
Equity investments, at fair value | 9,093 | |
Equity securities available-for-sale | 9,512 | |
Recurring [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | Investment funds [Member] | ||
Assets [Abstract] | ||
Equity investments, at fair value | 0 | |
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] | ||
Fixed maturity securities available-for-sale | 1,247,723 | 1,274,396 |
Recurring [Member] | Significant other observable inputs (Level 2) [Member] | U.S. treasury | ||
Assets [Abstract] | ||
Fixed maturity securities available-for-sale | 7,858 | 8,078 |
Recurring [Member] | Significant other observable inputs (Level 2) [Member] | U.S. government-sponsored agencies | ||
Assets [Abstract] | ||
Fixed maturity securities available-for-sale | 290,057 | 297,949 |
Recurring [Member] | Significant other observable inputs (Level 2) [Member] | Obligations of states and political subdivisions | ||
Assets [Abstract] | ||
Fixed maturity securities available-for-sale | 282,307 | 307,536 |
Recurring [Member] | Significant other observable inputs (Level 2) [Member] | Commercial mortgage-backed | ||
Assets [Abstract] | ||
Fixed maturity securities available-for-sale | 75,314 | 83,980 |
Recurring [Member] | Significant other observable inputs (Level 2) [Member] | Residential mortgage-backed | ||
Assets [Abstract] | ||
Fixed maturity securities available-for-sale | 146,725 | 119,799 |
Recurring [Member] | Significant other observable inputs (Level 2) [Member] | Other asset-backed | ||
Assets [Abstract] | ||
Fixed maturity securities available-for-sale | 21,329 | 24,114 |
Recurring [Member] | Significant other observable inputs (Level 2) [Member] | Corporate | ||
Assets [Abstract] | ||
Fixed maturity securities available-for-sale | 424,133 | 432,940 |
Recurring [Member] | Significant other observable inputs (Level 2) [Member] | Equity Securities [Member] | ||
Assets [Abstract] | ||
Equity investments, at fair value | 9,613 | |
Equity securities available-for-sale | 10,196 | |
Recurring [Member] | Significant other observable inputs (Level 2) [Member] | Financial services | ||
Assets [Abstract] | ||
Equity investments, at fair value | 0 | |
Equity securities available-for-sale | 0 | |
Recurring [Member] | Significant other observable inputs (Level 2) [Member] | Information technology | ||
Assets [Abstract] | ||
Equity investments, at fair value | 0 | |
Equity securities available-for-sale | 0 | |
Recurring [Member] | Significant other observable inputs (Level 2) [Member] | Healthcare | ||
Assets [Abstract] | ||
Equity investments, at fair value | 0 | |
Equity securities available-for-sale | 0 | |
Recurring [Member] | Significant other observable inputs (Level 2) [Member] | Consumer staples | ||
Assets [Abstract] | ||
Equity investments, at fair value | 0 | |
Equity securities available-for-sale | 0 | |
Recurring [Member] | Significant other observable inputs (Level 2) [Member] | Consumer discretionary | ||
Assets [Abstract] | ||
Equity investments, at fair value | 0 | |
Equity securities available-for-sale | 0 | |
Recurring [Member] | Significant other observable inputs (Level 2) [Member] | Energy | ||
Assets [Abstract] | ||
Equity investments, at fair value | 0 | |
Equity securities available-for-sale | 0 | |
Recurring [Member] | Significant other observable inputs (Level 2) [Member] | Industrials | ||
Assets [Abstract] | ||
Equity investments, at fair value | 0 | |
Equity securities available-for-sale | 0 | |
Recurring [Member] | Significant other observable inputs (Level 2) [Member] | Other | ||
Assets [Abstract] | ||
Equity investments, at fair value | 0 | |
Equity securities available-for-sale | 0 | |
Recurring [Member] | Significant other observable inputs (Level 2) [Member] | Non-redeemable preferred stocks | ||
Assets [Abstract] | ||
Equity investments, at fair value | 9,613 | |
Equity securities available-for-sale | 10,196 | |
Recurring [Member] | Significant other observable inputs (Level 2) [Member] | Investment funds [Member] | ||
Assets [Abstract] | ||
Equity investments, at fair value | 0 | |
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] | ||
Fixed maturity securities available-for-sale | $ 349 | $ 620 |
Number of securities categorized as Level 3 fair value measurements | Security | 2 | 2 |
Recurring [Member] | Significant unobservable inputs (Level 3) [Member] | U.S. treasury | ||
Assets [Abstract] | ||
Fixed maturity securities available-for-sale | $ 0 | $ 0 |
Recurring [Member] | Significant unobservable inputs (Level 3) [Member] | U.S. government-sponsored agencies | ||
Assets [Abstract] | ||
Fixed maturity securities available-for-sale | 0 | 0 |
Recurring [Member] | Significant unobservable inputs (Level 3) [Member] | Obligations of states and political subdivisions | ||
Assets [Abstract] | ||
Fixed maturity securities available-for-sale | 0 | 0 |
Recurring [Member] | Significant unobservable inputs (Level 3) [Member] | Commercial mortgage-backed | ||
Assets [Abstract] | ||
Fixed maturity securities available-for-sale | 0 | 0 |
Recurring [Member] | Significant unobservable inputs (Level 3) [Member] | Residential mortgage-backed | ||
Assets [Abstract] | ||
Fixed maturity securities available-for-sale | 0 | 0 |
Recurring [Member] | Significant unobservable inputs (Level 3) [Member] | Other asset-backed | ||
Assets [Abstract] | ||
Fixed maturity securities available-for-sale | 0 | 0 |
Recurring [Member] | Significant unobservable inputs (Level 3) [Member] | Corporate | ||
Assets [Abstract] | ||
Fixed maturity securities available-for-sale | 349 | 620 |
Recurring [Member] | Significant unobservable inputs (Level 3) [Member] | Equity Securities [Member] | ||
Assets [Abstract] | ||
Equity investments, at fair value | $ 0 | |
Equity securities available-for-sale | $ 2,003 | |
Number of securities categorized as Level 3 fair value measurements | Security | 1 | 2 |
Recurring [Member] | Significant unobservable inputs (Level 3) [Member] | Financial services | ||
Assets [Abstract] | ||
Equity investments, at fair value | $ 0 | |
Equity securities available-for-sale | $ 3 | |
Recurring [Member] | Significant unobservable inputs (Level 3) [Member] | Information technology | ||
Assets [Abstract] | ||
Equity investments, at fair value | 0 | |
Equity securities available-for-sale | 0 | |
Recurring [Member] | Significant unobservable inputs (Level 3) [Member] | Healthcare | ||
Assets [Abstract] | ||
Equity investments, at fair value | 0 | |
Equity securities available-for-sale | 0 | |
Recurring [Member] | Significant unobservable inputs (Level 3) [Member] | Consumer staples | ||
Assets [Abstract] | ||
Equity investments, at fair value | 0 | |
Equity securities available-for-sale | 0 | |
Recurring [Member] | Significant unobservable inputs (Level 3) [Member] | Consumer discretionary | ||
Assets [Abstract] | ||
Equity investments, at fair value | 0 | |
Equity securities available-for-sale | 0 | |
Recurring [Member] | Significant unobservable inputs (Level 3) [Member] | Energy | ||
Assets [Abstract] | ||
Equity investments, at fair value | 0 | |
Equity securities available-for-sale | 0 | |
Recurring [Member] | Significant unobservable inputs (Level 3) [Member] | Industrials | ||
Assets [Abstract] | ||
Equity investments, at fair value | 0 | |
Equity securities available-for-sale | 0 | |
Recurring [Member] | Significant unobservable inputs (Level 3) [Member] | Other | ||
Assets [Abstract] | ||
Equity investments, at fair value | 0 | |
Equity securities available-for-sale | 0 | |
Recurring [Member] | Significant unobservable inputs (Level 3) [Member] | Non-redeemable preferred stocks | ||
Assets [Abstract] | ||
Equity investments, at fair value | 0 | |
Equity securities available-for-sale | 2,000 | |
Recurring [Member] | Significant unobservable inputs (Level 3) [Member] | Investment funds [Member] | ||
Assets [Abstract] | ||
Equity investments, at fair value | 0 | |
Not Reported At Fair Value [Member] | ||
Liabilities [Abstract] | ||
Surplus notes | 15,145 | 16,689 |
Not Reported At Fair Value [Member] | Investments measured at net asset value (NAV) | ||
Liabilities [Abstract] | ||
Surplus notes | 0 | 0 |
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 | $ 15,145 | $ 16,689 |
DISCLOSURES ABOUT THE FAIR VA_5
DISCLOSURES ABOUT THE FAIR VALUE OF FINANCIAL INSTRUMENTS, Unobservable Input Reconciliation (Details) - Recurring [Member] - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Reconciliation of assets measured at fair value on recurring basis using significant unobservable inputs [Roll Forward] | ||||
Beginning balance | $ 474 | $ 2,843 | $ 623 | $ 2,985 |
Settlements | (125) | (125) | (270) | (265) |
Unrealized losses included in net income | (3) | |||
Unrealized losses included in other comprehensive income (loss) on securities still held at reporting date | (1) | (1) | (3) | |
Balance at September 30, 2018 | 349 | 2,717 | 349 | 2,717 |
Corporate | ||||
Reconciliation of assets measured at fair value on recurring basis using significant unobservable inputs [Roll Forward] | ||||
Beginning balance | 474 | 840 | 620 | 982 |
Settlements | (125) | (125) | (270) | (265) |
Unrealized losses included in net income | 0 | |||
Unrealized losses included in other comprehensive income (loss) on securities still held at reporting date | (1) | (1) | (3) | |
Balance at September 30, 2018 | 349 | 714 | 349 | 714 |
Financial services | ||||
Reconciliation of assets measured at fair value on recurring basis using significant unobservable inputs [Roll Forward] | ||||
Beginning balance | 0 | 3 | 3 | 3 |
Settlements | 0 | 0 | 0 | 0 |
Unrealized losses included in net income | (3) | |||
Unrealized losses included in other comprehensive income (loss) on securities still held at reporting date | 0 | 0 | 0 | |
Balance at September 30, 2018 | $ 0 | 3 | $ 0 | 3 |
Non-redeemable preferred stocks | ||||
Reconciliation of assets measured at fair value on recurring basis using significant unobservable inputs [Roll Forward] | ||||
Beginning balance | 2,000 | 2,000 | ||
Settlements | 0 | 0 | ||
Unrealized losses included in other comprehensive income (loss) on securities still held at reporting date | 0 | 0 | ||
Balance at September 30, 2018 | $ 2,000 | $ 2,000 |
INVESTMENTS (Details)
INVESTMENTS (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Amortized cost and estimated fair value of available-for-sale securities [Abstract] | |||||
Fixed maturity securities available-for-sale, Amortized cost | $ 1,264,975 | $ 1,264,975 | $ 1,253,166 | ||
Fixed maturity securities available-for-sale | 1,248,072 | 1,248,072 | 1,275,016 | ||
Equity securities available-for-sale, Amortized cost | 144,274 | ||||
Equity securities available-for-sale | 228,115 | ||||
Available-for-sale securities, Amortized cost | 1,397,440 | ||||
Available-for-sale securities, Gross unrealized gains | 118,284 | ||||
Available-for-sale securities, Gross unrealized losses | 12,593 | ||||
Available-for-sale securities | 1,503,131 | ||||
Available for sale securities continuous unrealized loss position [Abstract] | |||||
Less than twelve months, Fair value | 247,865 | ||||
Less than twelve months, Unrealized losses | 3,840 | ||||
Twelve months or longer, Fair value | 192,946 | ||||
Twelve months or longer, Unrealized losses | 8,753 | ||||
Total, Fair value | 440,811 | ||||
Total, Unrealized losses | 12,593 | ||||
Amortized cost | |||||
Due in one year or less | 40,384 | 40,384 | |||
Due after one year through five years | 224,706 | 224,706 | |||
Due after five years through ten years | 365,415 | 365,415 | |||
Due after ten years | 404,097 | 404,097 | |||
Securities not due at a single maturity date | 230,373 | 230,373 | |||
Fixed maturity securities available-for-sale, Amortized cost | 1,264,975 | 1,264,975 | 1,253,166 | ||
Estimated fair value | |||||
Due in one year or less | 40,719 | 40,719 | |||
Due after one year through five years | 225,537 | 225,537 | |||
Due after five years through ten years | 360,172 | 360,172 | |||
Due after ten years | 398,067 | 398,067 | |||
Securities not due at a single maturity date | 223,577 | 223,577 | |||
Totals | 1,248,072 | 1,248,072 | 1,275,016 | ||
Realized Investment Gains (Losses) [Abstract] | |||||
Fixed maturity securities available-for-sale gross realized gains | 90 | 324 | |||
Fixed maturity securities available-for-sale gross realized losses | (1,050) | (7,018) | |||
Equity securities: | 4,325 | 8,520 | |||
Change in unrealized investment gains | 9,502 | (799) | |||
Net realized investment gains (losses) and, beginning in 2018, change in unrealized investment gains on equity investments | 11,135 | $ (594) | (118) | $ 2,166 | |
Debt Securities [Member] | |||||
Amortized cost and estimated fair value of available-for-sale securities [Abstract] | |||||
Fixed maturity securities available-for-sale, Amortized cost | 1,264,975 | 1,264,975 | 1,253,166 | ||
Fixed maturity securities available-for-sale, Gross unrealized gains | 13,918 | 13,918 | 33,036 | ||
Fixed maturity securities available-for-sale, Gross unrealized losses | 30,821 | 30,821 | 11,186 | ||
Fixed maturity securities available-for-sale | 1,248,072 | 1,248,072 | 1,275,016 | ||
Available for sale securities continuous unrealized loss position [Abstract] | |||||
Less than twelve months, Fair value | 530,648 | 530,648 | 232,834 | ||
Less than twelve months, Unrealized losses | 14,297 | 14,297 | 2,472 | ||
Twelve months or longer, Fair value | 238,271 | 238,271 | 190,985 | ||
Twelve months or longer, Unrealized losses | 16,524 | 16,524 | 8,714 | ||
Total, Fair value | 768,919 | 768,919 | 423,819 | ||
Total, Unrealized losses | 30,821 | 30,821 | 11,186 | ||
Amortized cost | |||||
Fixed maturity securities available-for-sale, Amortized cost | 1,264,975 | 1,264,975 | 1,253,166 | ||
Estimated fair value | |||||
Totals | 1,248,072 | 1,248,072 | 1,275,016 | ||
Realized Investment Gains (Losses) [Abstract] | |||||
Available-for-sale, Gross realized investment gains | 29 | 408 | |||
Available-for-sale, Gross realized investment losses | (230) | (2,316) | |||
U.S. treasury | |||||
Amortized cost and estimated fair value of available-for-sale securities [Abstract] | |||||
Fixed maturity securities available-for-sale, Amortized cost | 8,133 | 8,133 | 8,115 | ||
Fixed maturity securities available-for-sale, Gross unrealized gains | 0 | 0 | 0 | ||
Fixed maturity securities available-for-sale, Gross unrealized losses | 275 | 275 | 37 | ||
Fixed maturity securities available-for-sale | 7,858 | 7,858 | 8,078 | ||
Available for sale securities continuous unrealized loss position [Abstract] | |||||
Less than twelve months, Fair value | 7,621 | 7,621 | 8,078 | ||
Less than twelve months, Unrealized losses | 263 | 263 | 37 | ||
Twelve months or longer, Fair value | 237 | 237 | 0 | ||
Twelve months or longer, Unrealized losses | 12 | 12 | 0 | ||
Total, Fair value | 7,858 | 7,858 | 8,078 | ||
Total, Unrealized losses | 275 | 275 | 37 | ||
Amortized cost | |||||
Fixed maturity securities available-for-sale, Amortized cost | 8,133 | 8,133 | 8,115 | ||
Estimated fair value | |||||
Totals | 7,858 | 7,858 | 8,078 | ||
U.S. government-sponsored agencies | |||||
Amortized cost and estimated fair value of available-for-sale securities [Abstract] | |||||
Fixed maturity securities available-for-sale, Amortized cost | 305,159 | 305,159 | 303,932 | ||
Fixed maturity securities available-for-sale, Gross unrealized gains | 0 | 0 | 122 | ||
Fixed maturity securities available-for-sale, Gross unrealized losses | 15,102 | 15,102 | 6,105 | ||
Fixed maturity securities available-for-sale | 290,057 | 290,057 | 297,949 | ||
Available for sale securities continuous unrealized loss position [Abstract] | |||||
Less than twelve months, Fair value | 145,814 | 145,814 | 134,284 | ||
Less than twelve months, Unrealized losses | 5,252 | 5,252 | 1,491 | ||
Twelve months or longer, Fair value | 144,243 | 144,243 | 127,604 | ||
Twelve months or longer, Unrealized losses | 9,850 | 9,850 | 4,614 | ||
Total, Fair value | 290,057 | 290,057 | 261,888 | ||
Total, Unrealized losses | 15,102 | 15,102 | 6,105 | ||
Amortized cost | |||||
Fixed maturity securities available-for-sale, Amortized cost | 305,159 | 305,159 | 303,932 | ||
Estimated fair value | |||||
Totals | 290,057 | 290,057 | 297,949 | ||
Obligations of states and political subdivisions | |||||
Amortized cost and estimated fair value of available-for-sale securities [Abstract] | |||||
Fixed maturity securities available-for-sale, Amortized cost | 274,342 | 274,342 | 290,038 | ||
Fixed maturity securities available-for-sale, Gross unrealized gains | 8,773 | 8,773 | 17,729 | ||
Fixed maturity securities available-for-sale, Gross unrealized losses | 808 | 808 | 231 | ||
Fixed maturity securities available-for-sale | 282,307 | 282,307 | 307,536 | ||
Available for sale securities continuous unrealized loss position [Abstract] | |||||
Less than twelve months, Fair value | 21,833 | 21,833 | 0 | ||
Less than twelve months, Unrealized losses | 185 | 185 | 0 | ||
Twelve months or longer, Fair value | 11,881 | 11,881 | 14,416 | ||
Twelve months or longer, Unrealized losses | 623 | 623 | 231 | ||
Total, Fair value | 33,714 | 33,714 | 14,416 | ||
Total, Unrealized losses | 808 | 808 | 231 | ||
Amortized cost | |||||
Fixed maturity securities available-for-sale, Amortized cost | 274,342 | 274,342 | 290,038 | ||
Estimated fair value | |||||
Totals | 282,307 | 282,307 | 307,536 | ||
Commercial mortgage-backed | |||||
Amortized cost and estimated fair value of available-for-sale securities [Abstract] | |||||
Fixed maturity securities available-for-sale, Amortized cost | 78,943 | 78,943 | 84,058 | ||
Fixed maturity securities available-for-sale, Gross unrealized gains | 209 | 209 | 591 | ||
Fixed maturity securities available-for-sale, Gross unrealized losses | 3,838 | 3,838 | 669 | ||
Fixed maturity securities available-for-sale | 75,314 | 75,314 | 83,980 | ||
Available for sale securities continuous unrealized loss position [Abstract] | |||||
Less than twelve months, Fair value | 43,343 | 43,343 | 32,155 | ||
Less than twelve months, Unrealized losses | 2,014 | 2,014 | 221 | ||
Twelve months or longer, Fair value | 24,829 | 24,829 | 8,530 | ||
Twelve months or longer, Unrealized losses | 1,824 | 1,824 | 448 | ||
Total, Fair value | 68,172 | 68,172 | 40,685 | ||
Total, Unrealized losses | 3,838 | 3,838 | 669 | ||
Amortized cost | |||||
Fixed maturity securities available-for-sale, Amortized cost | 78,943 | 78,943 | 84,058 | ||
Estimated fair value | |||||
Totals | 75,314 | 75,314 | 83,980 | ||
Residential mortgage-backed | |||||
Amortized cost and estimated fair value of available-for-sale securities [Abstract] | |||||
Fixed maturity securities available-for-sale, Amortized cost | 149,847 | 149,847 | 120,554 | ||
Fixed maturity securities available-for-sale, Gross unrealized gains | 1,925 | 1,925 | 2,479 | ||
Fixed maturity securities available-for-sale, Gross unrealized losses | 5,047 | 5,047 | 3,234 | ||
Fixed maturity securities available-for-sale | 146,725 | 146,725 | 119,799 | ||
Available for sale securities continuous unrealized loss position [Abstract] | |||||
Less than twelve months, Fair value | 89,534 | 89,534 | 30,003 | ||
Less than twelve months, Unrealized losses | 2,439 | 2,439 | 394 | ||
Twelve months or longer, Fair value | 33,240 | 33,240 | 22,948 | ||
Twelve months or longer, Unrealized losses | 2,608 | 2,608 | 2,840 | ||
Total, Fair value | 122,774 | 122,774 | 52,951 | ||
Total, Unrealized losses | 5,047 | 5,047 | 3,234 | ||
Amortized cost | |||||
Fixed maturity securities available-for-sale, Amortized cost | 149,847 | 149,847 | 120,554 | ||
Estimated fair value | |||||
Totals | 146,725 | 146,725 | 119,799 | ||
Other asset-backed | |||||
Amortized cost and estimated fair value of available-for-sale securities [Abstract] | |||||
Fixed maturity securities available-for-sale, Amortized cost | 22,165 | 22,165 | 23,934 | ||
Fixed maturity securities available-for-sale, Gross unrealized gains | 313 | 313 | 625 | ||
Fixed maturity securities available-for-sale, Gross unrealized losses | 1,149 | 1,149 | 445 | ||
Fixed maturity securities available-for-sale | 21,329 | 21,329 | 24,114 | ||
Available for sale securities continuous unrealized loss position [Abstract] | |||||
Less than twelve months, Fair value | 4,969 | 4,969 | 0 | ||
Less than twelve months, Unrealized losses | 124 | 124 | 0 | ||
Twelve months or longer, Fair value | 11,985 | 11,985 | 13,440 | ||
Twelve months or longer, Unrealized losses | 1,025 | 1,025 | 445 | ||
Total, Fair value | 16,954 | 16,954 | 13,440 | ||
Total, Unrealized losses | 1,149 | 1,149 | 445 | ||
Amortized cost | |||||
Fixed maturity securities available-for-sale, Amortized cost | 22,165 | 22,165 | 23,934 | ||
Estimated fair value | |||||
Totals | 21,329 | 21,329 | 24,114 | ||
Corporate | |||||
Amortized cost and estimated fair value of available-for-sale securities [Abstract] | |||||
Fixed maturity securities available-for-sale, Amortized cost | 426,386 | 426,386 | 422,535 | ||
Fixed maturity securities available-for-sale, Gross unrealized gains | 2,698 | 2,698 | 11,490 | ||
Fixed maturity securities available-for-sale, Gross unrealized losses | 4,602 | 4,602 | 465 | ||
Fixed maturity securities available-for-sale | 424,482 | 424,482 | 433,560 | ||
Available for sale securities continuous unrealized loss position [Abstract] | |||||
Less than twelve months, Fair value | 217,534 | 217,534 | 28,314 | ||
Less than twelve months, Unrealized losses | 4,020 | 4,020 | 329 | ||
Twelve months or longer, Fair value | 11,856 | 11,856 | 4,047 | ||
Twelve months or longer, Unrealized losses | 582 | 582 | 136 | ||
Total, Fair value | 229,390 | 229,390 | 32,361 | ||
Total, Unrealized losses | 4,602 | 4,602 | 465 | ||
Amortized cost | |||||
Fixed maturity securities available-for-sale, Amortized cost | 426,386 | 426,386 | 422,535 | ||
Estimated fair value | |||||
Totals | 424,482 | 424,482 | 433,560 | ||
Equity Securities [Member] | |||||
Amortized cost and estimated fair value of available-for-sale securities [Abstract] | |||||
Equity securities available-for-sale, Amortized cost | 144,274 | ||||
Equity securities available-for-sale, Gross unrealized gains | 85,248 | ||||
Equity securities available-for-sale, Gross unrealized loss | 1,407 | ||||
Equity securities available-for-sale | 228,115 | ||||
Available for sale securities continuous unrealized loss position [Abstract] | |||||
Less than twelve months, Fair value | 15,031 | ||||
Less than twelve months, Unrealized losses | 1,368 | ||||
Twelve months or longer, Fair value | 1,961 | ||||
Twelve months or longer, Unrealized losses | 39 | ||||
Total, Fair value | 16,992 | ||||
Total, Unrealized losses | 1,407 | ||||
Realized Investment Gains (Losses) [Abstract] | |||||
Net realized investment gains, excluding other-than-temporary impairments | 961 | 9,763 | |||
Other-than-temporary impairments | (355) | (1,088) | |||
Financial services | |||||
Amortized cost and estimated fair value of available-for-sale securities [Abstract] | |||||
Equity securities available-for-sale, Amortized cost | 30,103 | ||||
Equity securities available-for-sale, Gross unrealized gains | 13,594 | ||||
Equity securities available-for-sale, Gross unrealized loss | 175 | ||||
Equity securities available-for-sale | 43,522 | ||||
Available for sale securities continuous unrealized loss position [Abstract] | |||||
Less than twelve months, Fair value | 4,391 | ||||
Less than twelve months, Unrealized losses | 175 | ||||
Twelve months or longer, Fair value | 0 | ||||
Twelve months or longer, Unrealized losses | 0 | ||||
Total, Fair value | 4,391 | ||||
Total, Unrealized losses | 175 | ||||
Information technology | |||||
Amortized cost and estimated fair value of available-for-sale securities [Abstract] | |||||
Equity securities available-for-sale, Amortized cost | 18,308 | ||||
Equity securities available-for-sale, Gross unrealized gains | 17,504 | ||||
Equity securities available-for-sale, Gross unrealized loss | 2 | ||||
Equity securities available-for-sale | 35,810 | ||||
Available for sale securities continuous unrealized loss position [Abstract] | |||||
Less than twelve months, Fair value | 344 | ||||
Less than twelve months, Unrealized losses | 2 | ||||
Twelve months or longer, Fair value | 0 | ||||
Twelve months or longer, Unrealized losses | 0 | ||||
Total, Fair value | 344 | ||||
Total, Unrealized losses | 2 | ||||
Healthcare | |||||
Amortized cost and estimated fair value of available-for-sale securities [Abstract] | |||||
Equity securities available-for-sale, Amortized cost | 18,877 | ||||
Equity securities available-for-sale, Gross unrealized gains | 11,876 | ||||
Equity securities available-for-sale, Gross unrealized loss | 158 | ||||
Equity securities available-for-sale | 30,595 | ||||
Available for sale securities continuous unrealized loss position [Abstract] | |||||
Less than twelve months, Fair value | 2,532 | ||||
Less than twelve months, Unrealized losses | 158 | ||||
Twelve months or longer, Fair value | 0 | ||||
Twelve months or longer, Unrealized losses | 0 | ||||
Total, Fair value | 2,532 | ||||
Total, Unrealized losses | 158 | ||||
Consumer staples | |||||
Amortized cost and estimated fair value of available-for-sale securities [Abstract] | |||||
Equity securities available-for-sale, Amortized cost | 9,275 | ||||
Equity securities available-for-sale, Gross unrealized gains | 4,917 | ||||
Equity securities available-for-sale, Gross unrealized loss | 65 | ||||
Equity securities available-for-sale | 14,127 | ||||
Available for sale securities continuous unrealized loss position [Abstract] | |||||
Less than twelve months, Fair value | 575 | ||||
Less than twelve months, Unrealized losses | 65 | ||||
Twelve months or longer, Fair value | 0 | ||||
Twelve months or longer, Unrealized losses | 0 | ||||
Total, Fair value | 575 | ||||
Total, Unrealized losses | 65 | ||||
Consumer discretionary | |||||
Amortized cost and estimated fair value of available-for-sale securities [Abstract] | |||||
Equity securities available-for-sale, Amortized cost | 10,935 | ||||
Equity securities available-for-sale, Gross unrealized gains | 9,640 | ||||
Equity securities available-for-sale, Gross unrealized loss | 37 | ||||
Equity securities available-for-sale | 20,538 | ||||
Available for sale securities continuous unrealized loss position [Abstract] | |||||
Less than twelve months, Fair value | 992 | ||||
Less than twelve months, Unrealized losses | 37 | ||||
Twelve months or longer, Fair value | 0 | ||||
Twelve months or longer, Unrealized losses | 0 | ||||
Total, Fair value | 992 | ||||
Total, Unrealized losses | 37 | ||||
Energy | |||||
Amortized cost and estimated fair value of available-for-sale securities [Abstract] | |||||
Equity securities available-for-sale, Amortized cost | 12,441 | ||||
Equity securities available-for-sale, Gross unrealized gains | 5,381 | ||||
Equity securities available-for-sale, Gross unrealized loss | 917 | ||||
Equity securities available-for-sale | 16,905 | ||||
Available for sale securities continuous unrealized loss position [Abstract] | |||||
Less than twelve months, Fair value | 3,181 | ||||
Less than twelve months, Unrealized losses | 917 | ||||
Twelve months or longer, Fair value | 0 | ||||
Twelve months or longer, Unrealized losses | 0 | ||||
Total, Fair value | 3,181 | ||||
Total, Unrealized losses | 917 | ||||
Industrials | |||||
Amortized cost and estimated fair value of available-for-sale securities [Abstract] | |||||
Equity securities available-for-sale, Amortized cost | 12,746 | ||||
Equity securities available-for-sale, Gross unrealized gains | 15,757 | ||||
Equity securities available-for-sale, Gross unrealized loss | 14 | ||||
Equity securities available-for-sale | 28,489 | ||||
Available for sale securities continuous unrealized loss position [Abstract] | |||||
Less than twelve months, Fair value | 3,016 | ||||
Less than twelve months, Unrealized losses | 14 | ||||
Twelve months or longer, Fair value | 0 | ||||
Twelve months or longer, Unrealized losses | 0 | ||||
Total, Fair value | 3,016 | ||||
Total, Unrealized losses | 14 | ||||
Other | |||||
Amortized cost and estimated fair value of available-for-sale securities [Abstract] | |||||
Equity securities available-for-sale, Amortized cost | 11,058 | ||||
Equity securities available-for-sale, Gross unrealized gains | 5,363 | ||||
Equity securities available-for-sale, Gross unrealized loss | 0 | ||||
Equity securities available-for-sale | 16,421 | ||||
Non-redeemable preferred stocks | |||||
Amortized cost and estimated fair value of available-for-sale securities [Abstract] | |||||
Equity securities available-for-sale, Amortized cost | 20,531 | ||||
Equity securities available-for-sale, Gross unrealized gains | 1,216 | ||||
Equity securities available-for-sale, Gross unrealized loss | 39 | ||||
Equity securities available-for-sale | 21,708 | ||||
Available for sale securities continuous unrealized loss position [Abstract] | |||||
Less than twelve months, Fair value | 0 | ||||
Less than twelve months, Unrealized losses | 0 | ||||
Twelve months or longer, Fair value | 1,961 | ||||
Twelve months or longer, Unrealized losses | 39 | ||||
Total, Fair value | 1,961 | ||||
Total, Unrealized losses | $ 39 | ||||
Other Long-term Investments [Member] | |||||
Realized Investment Gains (Losses) [Abstract] | |||||
Net realized investment gains (losses) and, beginning in 2018, change in unrealized investment gains on equity investments | $ (1,732) | $ (999) | $ (1,145) | $ (4,601) |
CONTINGENT LIABILITIES (Details
CONTINGENT LIABILITIES (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Entity's share of case loss reserves, eliminated by the purchase of annuities | $ 110 |
Contingent liability for aggregate guaranteed amount of annuities | $ 183 |
STOCK REPURCHASE PROGRAM (Detai
STOCK REPURCHASE PROGRAM (Details) - Treasury Stock [Member] - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Nov. 03, 2011 | |
Stock Repurchase Program [Line Items] | ||
Authorized amount of stock repurchase program | $ 15,000 | |
Stock repurchased and retired during period, shares | 25,300 | |
Average cost per share of stock repurchased | $ 25.76 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE INCOME - Components of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Cumulative adjustment for adoption of financial instruments recognition and measurement changes | $ 0 | $ 0 | ||
Other comprehensive income (loss) before reclassifications | (35,903) | $ 23,460 | ||
Amounts reclassified from accumulated other comprehensive income (loss) | 219 | $ (535) | 3,671 | (5,215) |
Other comprehensive income (loss) | (9,138) | 4,946 | (32,232) | 18,245 |
Accumulated Other Comprehensive Income (Loss) [Member] | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Cumulative adjustment for adoption of financial instruments recognition and measurement changes | (66,234) | (66,234) | ||
Other comprehensive income (loss) | (32,232) | 18,245 | ||
Unrealized gains (losses) on available-for- sale securities | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance | 83,497 | 49,748 | ||
Cumulative adjustment for adoption of financial instruments recognition and measurement changes | (66,234) | (66,234) | ||
Other comprehensive income (loss) before reclassifications | (35,903) | 23,460 | ||
Amounts reclassified from accumulated other comprehensive income (loss) | 5,288 | (4,399) | ||
Other comprehensive income (loss) | (30,615) | 19,061 | ||
Balance | (13,352) | 68,809 | (13,352) | 68,809 |
Unrecognized pension and postretirement benefit obligations, net actuarial loss | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance | (13,074) | (16,299) | ||
Cumulative adjustment for adoption of financial instruments recognition and measurement changes | 0 | 0 | ||
Other comprehensive income (loss) before reclassifications | 0 | 0 | ||
Amounts reclassified from accumulated other comprehensive income (loss) | 250 | 719 | ||
Other comprehensive income (loss) | 250 | 719 | ||
Balance | (12,824) | (15,580) | (12,824) | (15,580) |
Unrecognized pension and postretirement benefit obligations, prior service credit | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance | 12,961 | 12,632 | ||
Cumulative adjustment for adoption of financial instruments recognition and measurement changes | 0 | 0 | ||
Other comprehensive income (loss) before reclassifications | 0 | 0 | ||
Amounts reclassified from accumulated other comprehensive income (loss) | (1,867) | (1,535) | ||
Other comprehensive income (loss) | (1,867) | (1,535) | ||
Balance | 11,094 | 11,097 | 11,094 | 11,097 |
Total | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance | (113) | (3,667) | ||
Cumulative adjustment for adoption of financial instruments recognition and measurement changes | 0 | 0 | ||
Other comprehensive income (loss) before reclassifications | 0 | 0 | ||
Amounts reclassified from accumulated other comprehensive income (loss) | (539) | (271) | (1,617) | (816) |
Other comprehensive income (loss) | (1,617) | (816) | ||
Balance | (1,730) | (4,483) | (1,730) | (4,483) |
Total | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance | 83,384 | 46,081 | ||
Cumulative adjustment for adoption of financial instruments recognition and measurement changes | (66,234) | (66,234) | ||
Balance | $ (15,082) | $ 64,326 | $ (15,082) | $ 64,326 |
ACCUMULATED OTHER COMPREHENSI_4
ACCUMULATED OTHER COMPREHENSIVE INCOME - Reclassifications out of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Net realized investment gains (losses) and, beginning in 2018, change in unrealized investment gains on equity investments | $ 11,135 | $ (594) | $ (118) | $ 2,166 | |
Total income tax expense (benefit) | (5,296) | 1,186 | (2,117) | (2,175) | |
Net income | 19,148 | 746 | 14,077 | 13,054 | |
Net reclassification adjustment | (219) | 535 | (3,671) | 5,215 | |
Unrealized gains (losses) on investments: | Reclassification Out Of Accumulated Other Comprehensive Income [Member] | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Net realized investment gains (losses) and, beginning in 2018, change in unrealized investment gains on equity investments | (960) | 405 | (6,694) | 6,767 | |
Total income tax expense (benefit) | 202 | (141) | 1,406 | (2,368) | |
Net income | (758) | 264 | (5,288) | 4,399 | |
Unrecognized pension and postretirement benefit obligations, net actuarial loss | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Reclassification adjustment for amounts amortized into net periodic pension and postretirement benefit income: | [1] | (106) | (370) | (316) | (1,107) |
Net reclassification adjustment | (250) | (719) | |||
Unrecognized pension and postretirement benefit obligations, prior service credit | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Reclassification adjustment for amounts amortized into net periodic pension and postretirement benefit income: | [1] | 788 | 787 | 2,363 | 2,362 |
Net reclassification adjustment | 1,867 | 1,535 | |||
Total | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Reclassification adjustment for amounts amortized into net periodic pension and postretirement benefit income: | 682 | 417 | 2,047 | 1,255 | |
Deferred income tax (expense) benefit | (143) | (146) | (430) | (439) | |
Net reclassification adjustment | $ 539 | $ 271 | $ 1,617 | $ 816 | |
[1] | These reclassified components of accumulated other comprehensive income are included in the computation of net periodic pension and postretirement benefit income (see note 7, Employee Retirement Plans, for additional details). |
Subsequent events (Details)
Subsequent events (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended |
Dec. 31, 2018 | Sep. 30, 2018 | Dec. 31, 2019 | |
Restructuring Cost and Reserve [Line Items] | |||
Business Exit Costs | $ 1 | $ 1 | |
Property and casualty insurance [Member] | Personal Lines [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Premiums Written As A Percentage Of Total | 6.00% |