Document_And_Entity_Informatio
Document And Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Oct. 25, 2013 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | FALSE | |
Document Period End Date | 30-Sep-13 | |
Document Fiscal Year Focus | 2013 | |
Document Fiscal Period Focus | Q3 | |
Entity Registrant Name | MERCURY GENERAL CORP | |
Entity Central Index Key | 64996 | |
Current Fiscal Year End Date | -19 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 54,960,392 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
ASSETS | ||
Fixed maturity securities (amortized cost $2,481,651; $2,270,903) | $2,538,514 | $2,408,354 |
Equity securities (cost $267,614; $475,959) | 336,367 | 477,088 |
Short-term investments (cost $251,550; $294,607) | 251,449 | 294,653 |
Total investments | 3,126,330 | 3,180,095 |
Cash | 250,061 | 158,183 |
Receivables: | ||
Premiums | 372,818 | 345,387 |
Accrued investment income | 35,316 | 31,109 |
Other | 18,399 | 17,756 |
Total receivables | 426,533 | 394,252 |
Deferred policy acquisition costs | 196,284 | 185,910 |
Fixed assets, net | 154,467 | 161,940 |
Current income taxes | 0 | 7,058 |
Deferred income taxes | 26,437 | 0 |
Goodwill | 42,796 | 42,796 |
Other intangible assets, net | 43,098 | 47,589 |
Other assets | 74,450 | 11,863 |
Total assets | 4,340,456 | 4,189,686 |
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||
Losses and loss adjustment expenses | 1,010,534 | 1,036,123 |
Unearned premiums | 967,320 | 920,429 |
Notes payable | 180,000 | 140,000 |
Accounts payable and accrued expenses | 133,973 | 96,220 |
Current income taxes | 26,324 | 0 |
Deferred income taxes | 0 | 445 |
Other liabilities | 182,150 | 153,972 |
Total liabilities | 2,500,301 | 2,347,189 |
Commitments and contingencies | ||
Shareholders’ equity: | ||
Common stock without par value or stated value: Authorized 70,000 shares; issued and outstanding 54,960; 54,922 | 81,109 | 79,380 |
Additional paid-in capital | 128 | 0 |
Retained earnings | 1,758,918 | 1,763,117 |
Total shareholders’ equity | 1,840,155 | 1,842,497 |
Total liabilities and shareholders’ equity | $4,340,456 | $4,189,686 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ||
Amortized cost on fixed maturities trading investments | $2,481,651 | $2,270,903 |
Cost - equity security trading investments | 267,614 | 475,959 |
Cost - short-term investments | $251,550 | $294,607 |
Common Stock | ||
Common stock, no par value | $0 | $0 |
Common stock, shares authorized | 70,000,000 | 70,000,000 |
Common stock, shares issued | 54,960,000 | 54,922,000 |
Common stock, shares outstanding | 54,960,000 | 54,922,000 |
Consolidated_Statements_Of_Ope
Consolidated Statements Of Operations (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Revenues: | ||||
Net premiums earned | $678,913 | $646,084 | $2,017,295 | $1,919,143 |
Net investment income | 30,857 | 33,410 | 93,706 | 96,569 |
Net realized investment (losses) gains | 16,212 | 49,752 | -7,153 | 78,656 |
Other | 2,685 | 2,532 | 7,539 | 7,790 |
Total revenues | 728,667 | 731,778 | 2,111,387 | 2,102,158 |
Expenses: | ||||
Losses and loss adjustment expenses | 492,558 | 467,929 | 1,446,524 | 1,415,096 |
Policy acquisition costs | 126,891 | 121,906 | 377,006 | 357,062 |
Other operating expenses | 54,087 | 50,225 | 166,165 | 154,353 |
Interest | 338 | 388 | 864 | 1,176 |
Total expenses | 673,874 | 640,448 | 1,990,559 | 1,927,687 |
(Loss) income before income taxes | 54,793 | 91,330 | 120,828 | 174,471 |
Income tax (benefit) expense | 15,223 | 25,129 | 24,061 | 40,178 |
Net (loss) income | $39,570 | $66,201 | $96,767 | $134,293 |
Net income per share: | ||||
Basic (in dollars per share) | $0.72 | $1.21 | $1.76 | $2.45 |
Diluted (in dollars per share) | $0.72 | $1.21 | $1.76 | $2.45 |
Weighted average shares outstanding: | ||||
Basic (in shares) | 54,959 | 54,911 | 54,941 | 54,895 |
Diluted (in shares) | 54,973 | 54,925 | 54,957 | 54,918 |
Dividends paid per share (in dollars per share) | $0.61 | $0.61 | $1.84 | $1.83 |
Consolidated_Statements_Of_Com
Consolidated Statements Of Comprehensive (Loss) Income (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Net (loss) income | $39,570 | $66,201 | $96,767 | $134,293 |
Other comprehensive income, before tax: | ||||
Gains on hedging instrument | 0 | 0 | 0 | 0 |
Other comprehensive income, before tax: | 0 | 0 | 0 | 0 |
Income tax expense related to gains on hedging instrument | 0 | 0 | 0 | 0 |
Other comprehensive income, net of tax: | 0 | 0 | 0 | 0 |
Comprehensive (loss) income | $39,570 | $66,201 | $96,767 | $134,293 |
Consolidated_Statements_Of_Cas
Consolidated Statements Of Cash Flows (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | $96,767 | $134,293 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 23,715 | 27,903 |
Net realized investment losses (gains) | 7,153 | -78,656 |
Bond amortization, net | 8,659 | 6,613 |
Excess tax benefit from exercise of stock options | -258 | -116 |
Increase in premiums receivables | -27,431 | -57,518 |
Change in current and deferred income taxes | 6,758 | 10,848 |
Increase in deferred policy acquisition costs | -10,374 | -14,883 |
Decrease in unpaid losses and loss adjustment expenses | -25,589 | -6,859 |
Increase in unearned premiums | 46,891 | 77,849 |
Increase in accounts payable and accrued expenses | 38,749 | 6,553 |
Share-based compensation | 216 | 312 |
Changes in other payables | 9,142 | 10,503 |
Other, net | -4,681 | -3,512 |
Net cash provided by operating activities | 169,717 | 113,330 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Fixed maturities available-for-sale in nature: Purchases | -625,326 | -386,262 |
Fixed maturities available-for-sale in nature: Sales | 172,557 | 78,341 |
Fixed maturities available-for-sale in nature: Calls or maturities | 232,426 | 328,592 |
Equity securities available-for-sale in nature: | ||
Purchases | -463,056 | -236,785 |
Sales | 677,017 | 172,144 |
Calls | 0 | 923 |
Changes in securities payable and receivable | -43,918 | -1,320 |
Net decrease in short-term investments | 42,614 | 14,510 |
Purchase of fixed assets | -12,983 | -12,205 |
Sale of fixed assets | 610 | 1,864 |
Other, net | 1,547 | 1,904 |
Net cash used in investing activities | -18,512 | -38,294 |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Dividends paid to shareholders | -100,967 | -100,469 |
Proceeds from Bank Loan | 40,000 | 0 |
Excess tax benefit from exercise of stock options | 258 | 116 |
Proceeds from stock options exercised | 1,382 | 2,098 |
Net cash used in financing activities | -59,327 | -98,255 |
Net increase (decrease) in cash | 91,878 | -23,219 |
Cash: | ||
Beginning of the year | 158,183 | 211,393 |
End of period | 250,061 | 188,174 |
SUPPLEMENTAL CASH FLOW DISCLOSURE | ||
Interest paid | 796 | 1,319 |
Income taxes paid | $17,303 | $29,330 |
General
General | 9 Months Ended |
Sep. 30, 2013 | |
General [Abstract] | |
General | General |
Consolidation and Basis of Presentation | |
The condensed consolidated financial statements include the accounts of Mercury General Corporation and its subsidiaries (referred to herein collectively as the “Company”). For the list of the Company’s subsidiaries, see Note 1 “Summary of Significant Accounting Policies” of the Notes to Consolidated Financial Statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012. | |
The condensed consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“GAAP”), which differ in some respects from those filed in reports to insurance regulatory authorities. All intercompany transactions and balances have been eliminated. | |
The financial data of the Company included herein are unaudited. In the opinion of management, all material adjustments of a normal recurring nature have been made to present fairly the Company’s financial position at September 30, 2013 and the results of operations, comprehensive income, and cash flows for the periods presented. These statements were prepared in accordance with the instructions for interim reporting and do not contain certain information in the annual financial statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2012. Readers are urged to review the Company's Annual Report on Form 10-K for the year ended December 31, 2012 for more complete descriptions and discussions. Operating results and cash flows for the nine months ended September 30, 2013 are not necessarily indicative of the results that may be expected for the year ending December 31, 2013. | |
Use of Estimates | |
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. These estimates require the Company to apply complex assumptions and judgments, and often the Company must make estimates about effects of matters that are inherently uncertain and will likely change in subsequent periods. The most significant assumptions in the preparation of these condensed consolidated financial statements relate to reserves for losses and loss adjustment expenses. Actual results could differ from those estimates (See Note 1 “Summary of Significant Accounting Policies” of the Notes to Consolidated Financial Statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012). | |
Earnings per Share | |
Potentially dilutive securities representing approximately 53,000 and 108,000 shares of common stock for the three months ended September 30, 2013 and 2012, respectively, and 76,000 and 77,000 shares of common stock for the nine months ended September 30, 2013 and 2012, respectively, were excluded from the computation of diluted earnings per common share for these periods because their effect would have been anti-dilutive. | |
Deferred Policy Acquisition Costs | |
Deferred policy acquisition costs consist of commissions paid to outside agents, premium taxes, salaries, and certain other underwriting costs that are incremental or directly related to the successful acquisition of new and renewal insurance contracts and are amortized over the life of the related policy in proportion to premiums earned. Deferred policy acquisition costs are limited to the amount that will remain after deducting from unearned premiums and anticipated investment income, the estimated losses and loss adjustment expenses, and the servicing costs that will be incurred as premiums are earned. The Company’s deferred policy acquisition costs are further limited by excluding those costs not directly related to the successful acquisition of insurance contracts. Deferred policy acquisition cost amortization was $126.9 million and $121.9 million for the three months ended September 30, 2013 and 2012, respectively, and $377.0 million and $357.1 million for the nine months ended September 30, 2013 and 2012, respectively. The Company does not defer advertising expenditures but expenses them as incurred. The Company recorded net advertising expenses of approximately $16 million and $15 million for the nine months ended September 30, 2013 and 2012, respectively. | |
Total Return Swap | |
As of September 30, 2013, the Company formed and consolidated a special purpose investment vehicle, Animas Funding LLC (“AFL”). The Company is the sole managing member in AFL. On August 9, 2013, AFL entered into a three-year total return swap agreement with Citibank, N.A. (“Citibank”). Under the total return swap agreement, AFL receives the income equivalent on underlying obligations due to Citibank and pays to Citibank interest equal to LIBOR plus 120 basis points on the outstanding notional amount of the underlying obligations, which was approximately $80 million as of September 30, 2013. The total return swap agreement is secured by approximately $40 million of U.S. Treasuries as collateral, which is included in short-term investments on the consolidated balance sheets. In the event of a significant erosion in market value, AFL's position in the loan portfolio will be reduced and the Company has the option to add additional capital or terminate the total return swap agreement. |
Recently_Issued_Accounting_Sta
Recently Issued Accounting Standards | 9 Months Ended |
Sep. 30, 2013 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recently Issued Accounting Standards | Recently Issued Accounting Standards |
In July 2013, the Financial Accounting Standards Board (“FASB”) issued a new standard that requires entities to present an unrecognized tax benefit as a reduction of a deferred tax asset for a net operating loss carryforward, or similar tax loss or tax credit carryforward, rather than as a liability when the uncertain tax position would reduce the net operating loss or other carryforward under the tax law of the applicable jurisdiction and when the entity intends to use the deferred tax asset for that purpose. The new standard will be effective for fiscal years and interim periods within those years that begin after December 15, 2013. The adoption of the new standard will not have a material impact on the Company's consolidated financial statements. | |
In February 2013, the FASB issued a new standard that requires entities to disclose additional information about items reclassified out of accumulated other comprehensive income in their financial statements. Entities are required to include information about changes in accumulated other comprehensive income balances by component and additional information about significant items reclassified out of accumulated other comprehensive income in their interim reporting periods. The Company adopted the new standard which became effective for the interim period ended March 31, 2013. The adoption of the new standard did not have any impact on the Company’s consolidated financial statements. |
Fair_Value_of_Financial_Instru
Fair Value of Financial Instruments | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Financial Instruments, Owned, at Fair Value [Abstract] | ||||||||
Fair Value of Financial Instruments | Fair Value of Financial Instruments | |||||||
The financial instruments recorded in the consolidated balance sheets include investments, receivables, the total return swap, interest rate swaps, accounts payable, equity contracts, and secured and unsecured notes payable. Due to their short-term maturity, the carrying values of receivables and accounts payable approximate their fair market values. The following table presents the estimated fair values of financial instruments at September 30, 2013 and December 31, 2012. | ||||||||
September 30, 2013 | December 31, 2012 | |||||||
(Amounts in thousands) | ||||||||
Assets | ||||||||
Investments | $ | 3,126,330 | $ | 3,180,095 | ||||
Total return swap | $ | 346 | $ | 0 | ||||
Liabilities | ||||||||
Interest rate swap | $ | 0 | $ | 103 | ||||
Equity contracts | $ | 0 | $ | 175 | ||||
Secured notes | $ | 140,000 | $ | 140,000 | ||||
Unsecured note | $ | 40,000 | $ | 0 | ||||
Methods and assumptions used in estimating fair values are as follows: | ||||||||
Investments | ||||||||
The Company applies the fair value option to all fixed maturity and equity securities and short-term investments at the time an eligible item is first recognized. The cost of investments sold is determined on a first-in and first-out method and realized gains and losses are included in net realized investment (losses) gains. For additional disclosures regarding methods and assumptions used in estimating fair values of these securities, see Note 5. | ||||||||
Total return swap and interest rate swap | ||||||||
The fair values of the total return swap and interest rate swap reflect the estimated amounts that the Company would pay at September 30, 2013 and December 31, 2012 in order to terminate the contracts based on models using inputs, such as interest rate yield curves, observable for substantially the full term of the contract. For additional disclosures regarding methods and assumptions used in estimating fair values, see Note 5. | ||||||||
Equity contracts | ||||||||
The fair value of equity contracts is based on quoted prices for identical instruments in active markets. For additional disclosures regarding methods and assumptions used in estimating fair values of equity contracts, see Note 5. | ||||||||
Secured notes payable | ||||||||
The fair value of the Company’s $120 million and $20 million secured notes, classified as Level 2 in the fair value hierarchy described in Note 5, is estimated based on assumptions and inputs, such as the market value of underlying collateral and reset rates, for similarly termed notes that are observable in the market. | ||||||||
Unsecured note payable | ||||||||
The fair value of the Company’s $40 million unsecured note, classified as Level 2 in the fair value hierarchy described in Note 5, is based on the unadjusted quoted price for similar notes in active markets. |
Fair_Value_Option
Fair Value Option | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Fair Value Option [Abstract] | ||||||||||||||||
Fair Value Option | Fair Value Option | |||||||||||||||
Gains and losses due to changes in fair value for items measured at fair value pursuant to application of the fair value option are included in net realized investment (losses) gains in the Company’s consolidated statements of operations, while interest and dividend income on investment holdings are recognized on an accrual basis on each measurement date and are included in net investment income in the Company’s consolidated statements of operations. The primary reasons for electing the fair value option were simplification and cost-benefit considerations as well as the expansion of the use of the Company's fair value measurement consistent with the long-term measurement objectives of the FASB for accounting for financial instruments. | ||||||||||||||||
The following table presents gains (losses) due to changes in fair value of investments that are measured at fair value pursuant to application of the fair value option: | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
(Amounts in thousands) | ||||||||||||||||
Fixed maturity securities | $ | (11,295 | ) | $ | 19,198 | $ | (81,268 | ) | $ | 50,013 | ||||||
Equity securities | 32,602 | 25,629 | 67,625 | 20,153 | ||||||||||||
Short-term investments | 508 | (44 | ) | 199 | (828 | ) | ||||||||||
Total | $ | 21,815 | $ | 44,783 | $ | (13,444 | ) | $ | 69,338 | |||||||
Fair_Value_Measurement
Fair Value Measurement | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||||||||||||||||
Fair Value Measurement | Fair Value Measurement | |||||||||||||||
The Company employs a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The fair value of a financial instrument is the amount 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 using the exit price. Accordingly, when market observable data are not readily available, the Company’s own assumptions are used to reflect those that market participants would be presumed to use in pricing the asset or liability at the measurement date. Assets and liabilities recorded on the consolidated balance sheets at fair value are categorized based on the level of judgment associated with inputs used to measure their fair value and the level of market price observability, as follows: | ||||||||||||||||
Level 1 | Unadjusted quoted prices are available in active markets for identical assets or liabilities as of the reporting date. | |||||||||||||||
Level 2 | Pricing inputs are other than quoted prices in active markets, which are based on the following: | |||||||||||||||
• Quoted prices for similar assets or liabilities in active markets; | ||||||||||||||||
• Quoted prices for identical or similar assets or liabilities in non-active markets; or | ||||||||||||||||
• Either directly or indirectly observable inputs as of the reporting date. | ||||||||||||||||
Level 3 | Pricing inputs are unobservable and significant to the overall fair value measurement, and the determination of fair value requires significant management judgment or estimation. | |||||||||||||||
In certain cases, inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy within which the fair value measurement in its entirety falls has been determined based on the lowest level input that is significant to the fair value measurement in its entirety. Thus, a Level 3 fair value measurement may include inputs that are observable (Level 1 or Level 2) and unobservable (Level 3). The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and consideration of factors specific to the asset or liability. | ||||||||||||||||
The Company uses prices and inputs that are current as of the measurement date, including during periods of market disruption. In periods of market disruption, the ability to observe prices and inputs may be reduced for many instruments. This condition could cause an instrument to be reclassified from Level 1 to Level 2, or from Level 2 to Level 3. The Company recognizes transfers between levels at either the actual date of the event or a change in circumstances that caused the transfer. | ||||||||||||||||
Summary of Significant Valuation Techniques for Financial Assets and Financial Liabilities | ||||||||||||||||
The Company’s fair value measurements are based on the market approach, which utilizes market transaction data for the same or similar instruments. | ||||||||||||||||
The Company obtained unadjusted fair values on approximately 98% of its portfolio from an independent pricing service. For approximately 2% of its portfolio, classified as Level 3, the Company obtained specific unadjusted broker quotes based on net fund value and, to a lesser extent, unobservable inputs from at least one knowledgeable outside security broker to determine the fair value as of September 30, 2013. | ||||||||||||||||
Level 1 Measurements - Fair values of financial assets and financial liabilities are obtained from an independent pricing service, and are based on unadjusted quoted prices for identical assets or liabilities in active markets. Additional pricing services and closing exchange values are used as a comparison to ensure that reasonable fair values are used in pricing the investment portfolio. | ||||||||||||||||
U.S. government bonds and agencies/Short-term bonds: Valued using unadjusted quoted market prices for identical assets in active markets. | ||||||||||||||||
Common stock: Comprised of actively traded, exchange listed U.S. and international equity securities and valued based on unadjusted quoted prices for identical assets in active markets. | ||||||||||||||||
Money market instruments: Valued based on unadjusted quoted prices for identical assets. | ||||||||||||||||
Equity contracts: Comprised of free-standing exchange listed derivatives that are actively traded and valued based on quoted prices for identical instruments in active markets. | ||||||||||||||||
Level 2 Measurements - Fair values of financial assets and financial liabilities are obtained from an independent pricing service or outside brokers, and are based on prices for similar assets or liabilities in active markets or valuation models whose inputs are observable, directly or indirectly, for substantially the full term of the asset or liability. Additional pricing services are used as a comparison to ensure reliable fair values are used in pricing the investment portfolio. | ||||||||||||||||
Municipal securities: Valued based on models or matrices using inputs such as quoted prices for identical or similar assets in active markets. | ||||||||||||||||
Mortgage-backed securities: Comprised of securities that are collateralized by mortgage loans and valued based on models or matrices using multiple observable inputs, such as benchmark yields, reported trades and broker/dealer quotes, for identical or similar assets in active markets. The Company had holdings of $16.7 million and $4.3 million at September 30, 2013 and December 31, 2012, respectively, in commercial mortgage-backed securities. | ||||||||||||||||
Corporate securities/Short-term bonds: Valued based on a multi-dimensional model using multiple observable inputs, such as benchmark yields, reported trades, broker/dealer quotes and issue spreads, for identical or similar assets in active markets. | ||||||||||||||||
Non-redeemable preferred stock: Valued based on observable inputs, such as underlying and common stock of same issuer and appropriate spread over a comparable U.S. Treasury security, for identical or similar assets in active markets. | ||||||||||||||||
Total return swap /Interest rate swap: Valued based on models using inputs such as interest rate yield curves, underlying debt/credit instruments and the appropriate benchmark spread for similar assets in active markets, observable for substantially the full term of the contract. | ||||||||||||||||
Level 3 Measurements - Fair values of financial assets are based on inputs that are both unobservable and significant to the overall fair value measurement, including any items in which the evaluated prices obtained elsewhere were deemed to be of a distressed trading level. | ||||||||||||||||
Collateralized debt obligations/Partnership interest in a private credit fund: Valued based on underlying debt/credit instruments and the appropriate benchmark spread for similar assets in active markets; taking into consideration unobservable inputs related to liquidity assumptions. | ||||||||||||||||
The Company’s financial instruments at fair value are reflected in the consolidated balance sheets on a trade-date basis. Related unrealized gains or losses are recognized in net realized investment (losses) gains in the consolidated statements of operations. Fair value measurements are not adjusted for transaction costs. | ||||||||||||||||
The following tables present information about the Company’s assets and liabilities measured at fair value on a recurring basis as of September 30, 2013 and December 31, 2012, and indicate the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value: | ||||||||||||||||
September 30, 2013 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
(Amounts in thousands) | ||||||||||||||||
Assets | ||||||||||||||||
Fixed maturity securities: | ||||||||||||||||
U.S. government bonds and agencies | $ | 16,128 | $ | 0 | $ | 0 | $ | 16,128 | ||||||||
Municipal securities | 0 | 2,149,615 | 0 | 2,149,615 | ||||||||||||
Mortgage-backed securities | 0 | 36,096 | 0 | 36,096 | ||||||||||||
Corporate securities | 0 | 300,331 | 0 | 300,331 | ||||||||||||
Collateralized debt obligations | 0 | 0 | 36,344 | 36,344 | ||||||||||||
Equity securities: | ||||||||||||||||
Common stock: | ||||||||||||||||
Public utilities | 107,102 | 0 | 0 | 107,102 | ||||||||||||
Banks, trusts and insurance companies | 9,963 | 0 | 0 | 9,963 | ||||||||||||
Energy and other | 181,333 | 0 | 0 | 181,333 | ||||||||||||
Non-redeemable preferred stock | 0 | 25,845 | 0 | 25,845 | ||||||||||||
Partnership interest in a private credit fund | 0 | 0 | 12,124 | 12,124 | ||||||||||||
Short-term bonds | 39,996 | 22,488 | 0 | 62,484 | ||||||||||||
Money market instruments | 188,965 | 0 | 0 | 188,965 | ||||||||||||
Total return swap | 0 | 346 | 0 | 346 | ||||||||||||
Total assets at fair value | $ | 543,487 | $ | 2,534,721 | $ | 48,468 | $ | 3,126,676 | ||||||||
December 31, 2012 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
(Amounts in thousands) | ||||||||||||||||
Assets | ||||||||||||||||
Fixed maturity securities: | ||||||||||||||||
U.S. government bonds and agencies | $ | 14,204 | $ | 0 | $ | 0 | $ | 14,204 | ||||||||
Municipal securities | 0 | 2,165,095 | 0 | 2,165,095 | ||||||||||||
Mortgage-backed securities | 0 | 30,703 | 0 | 30,703 | ||||||||||||
Corporate securities | 0 | 155,551 | 0 | 155,551 | ||||||||||||
Collateralized debt obligations | 0 | 0 | 42,801 | 42,801 | ||||||||||||
Equity securities: | ||||||||||||||||
Common stock: | ||||||||||||||||
Public utilities | 85,106 | 0 | 0 | 85,106 | ||||||||||||
Banks, trusts and insurance companies | 22,166 | 0 | 0 | 22,166 | ||||||||||||
Energy and other | 346,809 | 0 | 0 | 346,809 | ||||||||||||
Non-redeemable preferred stock | 0 | 11,701 | 0 | 11,701 | ||||||||||||
Partnership interest in a private credit fund | 0 | 0 | 11,306 | 11,306 | ||||||||||||
Short-term bonds | 0 | 24,530 | 0 | 24,530 | ||||||||||||
Money market instruments | 270,123 | 0 | 0 | 270,123 | ||||||||||||
Total assets at fair value | $ | 738,408 | $ | 2,387,580 | $ | 54,107 | $ | 3,180,095 | ||||||||
Liabilities | ||||||||||||||||
Equity contracts | $ | 175 | $ | 0 | $ | 0 | $ | 175 | ||||||||
Interest rate swap | 0 | 103 | 0 | 103 | ||||||||||||
Total liabilities at fair value | $ | 175 | $ | 103 | $ | 0 | $ | 278 | ||||||||
The following tables present a summary of changes in fair value of Level 3 financial assets and financial liabilities held at fair value. | ||||||||||||||||
Three Months Ended September 30, | ||||||||||||||||
2013 | 2012 | |||||||||||||||
Collateralized | Partnership | Collateralized | Partnership | |||||||||||||
Debt Obligations | Interest in a | Debt Obligations | Interest in a | |||||||||||||
Private Credit | Private Credit | |||||||||||||||
Fund | Fund | |||||||||||||||
(Amounts in thousands) | ||||||||||||||||
Beginning Balance | $ | 38,992 | $ | 11,990 | $ | 76,325 | $ | 11,030 | ||||||||
Realized gains (losses) included in earnings | 5,616 | 134 | 5,032 | (455 | ) | |||||||||||
Settlements | (8,264 | ) | 0 | 0 | 0 | |||||||||||
Ending Balance | $ | 36,344 | $ | 12,124 | $ | 81,357 | $ | 10,575 | ||||||||
The amount of total gains (losses) for the period included in earnings attributable to assets still held at September 30 | $ | 5,616 | $ | 134 | $ | 5,032 | $ | (455 | ) | |||||||
Nine Months Ended September 30, | ||||||||||||||||
2013 | 2012 | |||||||||||||||
Collateralized | Partnership | Collateralized | Partnership | |||||||||||||
Debt Obligations | Interest in a | Debt Obligations | Interest in a | |||||||||||||
Private Credit | Private Credit | |||||||||||||||
Fund | Fund | |||||||||||||||
(Amounts in thousands) | ||||||||||||||||
Beginning Balance | $ | 42,801 | $ | 11,306 | $ | 47,503 | $ | 10,008 | ||||||||
Realized gains included in earnings | 5,993 | 818 | 8,854 | 567 | ||||||||||||
Purchase | 0 | 0 | 25,000 | 0 | ||||||||||||
Sales | (4,186 | ) | 0 | 0 | 0 | |||||||||||
Settlements | (8,264 | ) | 0 | 0 | 0 | |||||||||||
Ending Balance | $ | 36,344 | $ | 12,124 | $ | 81,357 | $ | 10,575 | ||||||||
The amount of total gains for the period included in earnings attributable to assets still held at September 30 | $ | 6,510 | $ | 818 | $ | 8,854 | $ | 567 | ||||||||
There were no transfers between Levels 1, 2, and 3 of the fair value hierarchy during the nine months ended September 30, 2013 and 2012. | ||||||||||||||||
At September 30, 2013, the Company did not have any nonrecurring fair value measurements of nonfinancial assets or nonfinancial liabilities. |
Derivative_Financial_Instrumen
Derivative Financial Instruments | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
General Discussion of Derivative Instruments and Hedging Activities [Abstract] | ||||||||||||||||
Derivative Financial Instruments | Derivative Financial Instruments | |||||||||||||||
The Company is exposed to certain risks relating to its ongoing business operations. The primary risks managed by using derivative instruments are equity price risk and interest rate risk. Equity contracts on various equity securities are intended to manage the price risk associated with forecasted purchases or sales of such securities. Interest rate swaps are intended to manage the interest rate risk associated with the Company’s debts with fixed or floating rates. | ||||||||||||||||
On August 9, 2013, AFL entered into a three-year total return swap agreement with Citibank. Under the total return swap agreement, AFL receives the income equivalent on underlying obligations due to Citibank and pays to Citibank interest equal to LIBOR plus 120 basis points on the outstanding notional amount of the underlying obligations, which was approximately $80 million as of September 30, 2013. The total return swap is secured by approximately $40 million of U.S. Treasuries as collateral, which is included in short-term investments on the consolidated balance sheets. | ||||||||||||||||
On February 6, 2009, the Company entered into an interest rate swap of its floating LIBOR rate on a $120 million credit facility for a fixed rate of 1.93% that matured on January 3, 2012. The purpose of the swap was to offset the variability of cash flows resulting from the variable interest rate. The swap was not designated as a hedge and changes in the fair value were adjusted through the consolidated statement of operations in the period of change. | ||||||||||||||||
On March 3, 2008, the Company entered into an interest rate swap of its floating LIBOR rate on a Bank of America $18 million LIBOR plus 50 basis points loan for a fixed rate of 4.25% that matured on March 1, 2013. On October 4, 2011, the Company refinanced the $18 million loan that was scheduled to mature on March 1, 2013 with a Union Bank $20 million LIBOR plus 40 basis points loan that matures on January 2, 2015. The related swap expired on March 1, 2013. | ||||||||||||||||
Fair value amounts, and gains and losses on derivative instruments | ||||||||||||||||
The following tables present the location and amounts of derivative fair values in the consolidated balance sheets and derivative gains in the consolidated statements of operations: | ||||||||||||||||
Asset Derivatives | Liability Derivatives | |||||||||||||||
September 30, 2013 | December 31, 2012 | September 30, 2013 | December 31, 2012 | |||||||||||||
(Amount in thousands) | ||||||||||||||||
Total return swap - Other assets | $ | 346 | $ | 0 | $ | 0 | $ | 0 | ||||||||
Equity contracts - Other liabilities | 0 | 0 | 0 | 175 | ||||||||||||
Interest rate swap - Other liabilities | 0 | 0 | 0 | 103 | ||||||||||||
Total derivatives | $ | 346 | $ | 0 | $ | 0 | $ | 278 | ||||||||
Gain Recognized in Income | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
(Amounts in thousands) | ||||||||||||||||
Total return swap - Net realized investment (losses) gains | $ | 381 | $ | 0 | $ | 381 | $ | 0 | ||||||||
Equity contracts - Net realized investment (losses) gains | 543 | 757 | 1,722 | 2,342 | ||||||||||||
Interest rate swap - Other revenue | 0 | 139 | 103 | 410 | ||||||||||||
Total | $ | 924 | $ | 896 | $ | 2,206 | $ | 2,752 | ||||||||
Most equity contracts consist of covered calls. The Company writes covered calls on underlying equity positions held as an enhanced income strategy that is permitted for the Company’s insurance subsidiaries under statutory regulations. The Company manages the risk associated with covered calls through strict capital limitations and asset diversification throughout various industries. For additional disclosures regarding equity contracts, see Note 5. |
Goodwill_and_Other_Intangible_
Goodwill and Other Intangible Assets | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets | |||||||||||||
Goodwill | ||||||||||||||
There were no changes in the carrying amount of goodwill for the nine months ended September 30, 2013. Goodwill is reviewed annually for impairment and more frequently if potential impairment indicators exist. No impairment indications were identified during any of the periods presented. | ||||||||||||||
Other Intangible Assets | ||||||||||||||
The following table presents the components of other intangible assets as of September 30, 2013 and December 31, 2012. | ||||||||||||||
Gross Carrying | Accumulated | Net Carrying | Useful Lives | |||||||||||
Amount | Amortization | Amount | ||||||||||||
(Amounts in thousands) | (in years) | |||||||||||||
As of September 30, 2013: | ||||||||||||||
Customer relationships | $ | 51,755 | $ | (23,266 | ) | $ | 28,489 | 11 | ||||||
Trade names | 15,400 | (3,048 | ) | 12,352 | 24 | |||||||||
Technology | 4,300 | (2,043 | ) | 2,257 | 10 | |||||||||
Favorable leases | 1,725 | (1,725 | ) | 0 | 3 | |||||||||
Software | 550 | (550 | ) | 0 | 2 | |||||||||
Total intangible assets, net | $ | 73,730 | $ | (30,632 | ) | $ | 43,098 | |||||||
As of December 31, 2012: | ||||||||||||||
Customer relationships | $ | 51,755 | $ | (19,585 | ) | $ | 32,170 | 11 | ||||||
Trade names | 15,400 | (2,567 | ) | 12,833 | 24 | |||||||||
Technology | 4,300 | (1,720 | ) | 2,580 | 10 | |||||||||
Favorable leases | 1,725 | (1,719 | ) | 6 | 3 | |||||||||
Software | 550 | (550 | ) | 0 | 2 | |||||||||
Total intangible assets, net | $ | 73,730 | $ | (26,141 | ) | $ | 47,589 | |||||||
Intangible assets are amortized on a straight-line basis over their useful lives. Intangible assets amortization expense was $1.5 million for the three months ended September 30, 2013 and 2012, and $4.5 million and $4.6 million for the nine months ended September 30, 2013 and 2012, respectively. The following table presents the estimated future amortization expenses related to intangible assets as of September 30, 2013: | ||||||||||||||
Year Ending | Amortization Expense | |||||||||||||
(Amounts in thousands) | ||||||||||||||
Remainder of 2013 | $ | 1,495 | ||||||||||||
2014 | 5,980 | |||||||||||||
2015 | 5,980 | |||||||||||||
2016 | 5,980 | |||||||||||||
2017 | 5,253 | |||||||||||||
Thereafter | 18,410 | |||||||||||||
Total | $ | 43,098 | ||||||||||||
ShareBased_Compensation
Share-Based Compensation | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Share-based Compensation, Allocation and Classification in Financial Statements [Abstract] | |||||||||
Share-Based Compensation | Share-Based Compensation | ||||||||
Share-based compensation expense for all share-based payment awards granted or modified is based on the estimated grant-date fair value. The Company recognizes these compensation costs on a straight-line basis over the requisite service period of the award, which is the option vesting term of four or five years for options granted prior to 2008 and four years for options granted subsequent to January 1, 2008, for only those shares expected to vest. The fair value of stock option awards is estimated using the Black-Scholes option pricing model with the grant-date assumptions and weighted-average fair values. | |||||||||
Under the Company's 2005 Incentive Award Plan (the “Plan”), the Compensation Committee of the Company’s Board of Directors granted performance vesting restricted stock units to the Company’s senior management and key employees as follows: | |||||||||
Grant Year | |||||||||
2013 | 2012 | 2011 | |||||||
Three-year performance period ending December 31, | 2015 | 2014 | 2013 | ||||||
Vesting shares, target | 84,500 | 89,000 | 80,000 | ||||||
Vesting shares, maximum | 190,125 | 200,250 | 120,000 | ||||||
The restricted stock units vest at the end of a three-year performance period beginning with the year of the grant, and then only if, and to the extent that, the Company’s performance during the performance period achieves the threshold established by the Compensation Committee of the Company's Board of Directors. For 2011 grants, vesting will be based on the Company's cumulative underwriting income. For 2012 grants, vesting will be based on the Company's cumulative underwriting income and net premium written growth. For 2013 grants, vesting will be based on the Company's cumulative underwriting income, annual underwriting income, and net premiums written growth. | |||||||||
The fair value of each restricted share grant was determined based on the market price on the grant date. Compensation cost is recognized based on management’s best estimate that performance goals will be achieved. If such goals are not met, no compensation cost is recognized and any recognized compensation cost would be reversed. For the 2012 and 2011 grants, the achievement of the performance condition set by the Compensation Committee was no longer considered probable, and previously recognized compensation costs were reversed. |
Income_Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2013 | |
Components of Income Tax Expense (Benefit), Continuing Operations [Abstract] | |
Income Taxes | Income Taxes |
For financial statement purposes, the Company recognizes tax benefits related to positions taken, or expected to be taken, on a tax return only if, “more-likely-than-not,” the positions are sustainable. Once this threshold has been met, the Company's measurement of its expected tax benefits is recognized in its financial statements. | |
There was a $4.7 million increase to the total amount of unrecognized tax benefit related to tax uncertainties during the nine months ended September 30, 2013. The increase was the result of tax positions taken regarding federal tax credit carryforwards and state tax apportionment issues based on management’s best judgment given the facts, circumstances, and information available at the reporting date. The Company does not expect any changes in such unrecognized tax benefit to have a significant impact on its consolidated financial statements within the next 12 months. | |
The Company and its subsidiaries file income tax returns in the U.S. federal jurisdiction and various states. Tax years that remain subject to examination by major taxing jurisdictions are 2010 through 2012 for federal taxes and 2003 through 2011 for California state taxes. Tax year 2010 is currently under examination by the Internal Revenue Service (“IRS”). The IRS has issued adjustments to the Company’s 2010 tax liability which will generate a net tax refund. The Company has agreed with these adjustments and anticipates the exam will conclude in the near future. | |
The Company is currently under examination by the California Franchise Tax Board (“FTB”) for tax years 2003 through 2010. The FTB has issued Notices of Proposed Assessments to the Company for tax years 2003 through 2006. The Company has filed protests with the FTB in response to these assessments and presented its case in a hearing before the FTB. No assessments have been received for tax years 2007 through 2010. Management believes that the resolution of these examinations and assessments will not have a material impact on the condensed consolidated financial statements. | |
Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial reporting basis and the respective tax basis of the Company’s assets and liabilities, and expected benefits of utilizing net operating loss, capital loss, and tax-credit carryforwards. The Company assesses the likelihood that its deferred tax assets will be realized and, to the extent management does not believe these assets are more likely than not to be realized, a valuation allowance is established. | |
At September 30, 2013, the Company’s deferred income taxes were in a net asset position which included a combination of ordinary and capital deferred tax benefits. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon generating sufficient taxable income of the appropriate character within the carryback and carryforward periods available under the tax law. Management considers the reversal of deferred tax liabilities, projected future taxable income of an appropriate nature, and tax-planning strategies in making this assessment. The Company believes that through the use of prudent tax planning strategies and the generation of capital gains, sufficient income will be realized in order to maximize the full benefits of its deferred tax assets. Although realization is not assured, management believes that it is more likely than not that the Company’s deferred tax assets will be realized. |
Contingencies
Contingencies | 9 Months Ended |
Sep. 30, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies |
The Company is, from time to time, named as a defendant in various lawsuits or regulatory actions incidental to its insurance business. The majority of lawsuits brought against the Company relate to insurance claims that arise in the normal course of business and are reserved for through the reserving process. For a discussion of the Company’s reserving methods, see the Company’s Annual Report on Form 10-K for the year ended December 31, 2012. | |
The Company also establishes reserves for non-insurance claims related lawsuits, regulatory actions, and other contingencies when the Company believes a loss is probable and is able to estimate its potential exposure. For loss contingencies believed to be reasonably possible, the Company also discloses the nature of the loss contingency and an estimate of the possible loss, range of loss, or a statement that such an estimate cannot be made. While actual losses may differ from the amounts recorded and the ultimate outcome of the Company’s pending actions is generally not yet determinable, the Company does not believe that the ultimate resolution of currently pending legal or regulatory proceedings, either individually or in the aggregate, will have a material adverse effect on its financial condition, results of operations, or cash flows. | |
In all cases, the Company vigorously defends itself unless a reasonable settlement appears appropriate. For a discussion of legal matters, see the Company’s Annual Report on Form 10-K for the year ended December 31, 2012. |
General_Policy
General (Policy) | 9 Months Ended |
Sep. 30, 2013 | |
General [Abstract] | |
Consolidation and Basis of Presentation | Consolidation and Basis of Presentation |
The condensed consolidated financial statements include the accounts of Mercury General Corporation and its subsidiaries (referred to herein collectively as the “Company”). For the list of the Company’s subsidiaries, see Note 1 “Summary of Significant Accounting Policies” of the Notes to Consolidated Financial Statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012. | |
The condensed consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“GAAP”), which differ in some respects from those filed in reports to insurance regulatory authorities. All intercompany transactions and balances have been eliminated. | |
The financial data of the Company included herein are unaudited. In the opinion of management, all material adjustments of a normal recurring nature have been made to present fairly the Company’s financial position at September 30, 2013 and the results of operations, comprehensive income, and cash flows for the periods presented. These statements were prepared in accordance with the instructions for interim reporting and do not contain certain information in the annual financial statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2012. Readers are urged to review the Company's Annual Report on Form 10-K for the year ended December 31, 2012 for more complete descriptions and discussions. Operating results and cash flows for the nine months ended September 30, 2013 are not necessarily indicative of the results that may be expected for the year ending December 31, 2013. | |
Use of Estimates | Use of Estimates |
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. These estimates require the Company to apply complex assumptions and judgments, and often the Company must make estimates about effects of matters that are inherently uncertain and will likely change in subsequent periods. The most significant assumptions in the preparation of these condensed consolidated financial statements relate to reserves for losses and loss adjustment expenses. Actual results could differ from those estimates (See Note 1 “Summary of Significant Accounting Policies” of the Notes to Consolidated Financial Statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012). | |
Earnings per Share | Earnings per Share |
Potentially dilutive securities representing approximately 53,000 and 108,000 shares of common stock for the three months ended September 30, 2013 and 2012, respectively, and 76,000 and 77,000 shares of common stock for the nine months ended September 30, 2013 and 2012, respectively, were excluded from the computation of diluted earnings per common share for these periods because their effect would have been anti-dilutive. | |
Deferred Policy Acquisition Costs | Deferred Policy Acquisition Costs |
Deferred policy acquisition costs consist of commissions paid to outside agents, premium taxes, salaries, and certain other underwriting costs that are incremental or directly related to the successful acquisition of new and renewal insurance contracts and are amortized over the life of the related policy in proportion to premiums earned. Deferred policy acquisition costs are limited to the amount that will remain after deducting from unearned premiums and anticipated investment income, the estimated losses and loss adjustment expenses, and the servicing costs that will be incurred as premiums are earned. The Company’s deferred policy acquisition costs are further limited by excluding those costs not directly related to the successful acquisition of insurance contracts. Deferred policy acquisition cost amortization was $126.9 million and $121.9 million for the three months ended September 30, 2013 and 2012, respectively, and $377.0 million and $357.1 million for the nine months ended September 30, 2013 and 2012, respectively. The Company does not defer advertising expenditures but expenses them as incurred. The Company recorded net advertising expenses of approximately $16 million and $15 million for the nine months ended September 30, 2013 and 2012, respectively. |
Fair_Value_of_Financial_Instru1
Fair Value of Financial Instruments (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Financial Instruments, Owned, at Fair Value [Abstract] | ||||||||
Estimated Fair Values of Financial Instruments | The following table presents the estimated fair values of financial instruments at September 30, 2013 and December 31, 2012. | |||||||
September 30, 2013 | December 31, 2012 | |||||||
(Amounts in thousands) | ||||||||
Assets | ||||||||
Investments | $ | 3,126,330 | $ | 3,180,095 | ||||
Total return swap | $ | 346 | $ | 0 | ||||
Liabilities | ||||||||
Interest rate swap | $ | 0 | $ | 103 | ||||
Equity contracts | $ | 0 | $ | 175 | ||||
Secured notes | $ | 140,000 | $ | 140,000 | ||||
Unsecured note | $ | 40,000 | $ | 0 | ||||
Fair_Value_Option_Tables
Fair Value Option (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Fair Value Option [Abstract] | ||||||||||||||||
Gains And Losses Due To Changes In Fair Value Of Investments | The following table presents gains (losses) due to changes in fair value of investments that are measured at fair value pursuant to application of the fair value option: | |||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
(Amounts in thousands) | ||||||||||||||||
Fixed maturity securities | $ | (11,295 | ) | $ | 19,198 | $ | (81,268 | ) | $ | 50,013 | ||||||
Equity securities | 32,602 | 25,629 | 67,625 | 20,153 | ||||||||||||
Short-term investments | 508 | (44 | ) | 199 | (828 | ) | ||||||||||
Total | $ | 21,815 | $ | 44,783 | $ | (13,444 | ) | $ | 69,338 | |||||||
Fair_Value_Measurement_Tables
Fair Value Measurement (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||||||||||||||||
Schedule Of Assets And Liabilities Measured At Fair Value On A Recurring Basis Valuation Techniques | The following tables present information about the Company’s assets and liabilities measured at fair value on a recurring basis as of September 30, 2013 and December 31, 2012, and indicate the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value: | |||||||||||||||
September 30, 2013 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
(Amounts in thousands) | ||||||||||||||||
Assets | ||||||||||||||||
Fixed maturity securities: | ||||||||||||||||
U.S. government bonds and agencies | $ | 16,128 | $ | 0 | $ | 0 | $ | 16,128 | ||||||||
Municipal securities | 0 | 2,149,615 | 0 | 2,149,615 | ||||||||||||
Mortgage-backed securities | 0 | 36,096 | 0 | 36,096 | ||||||||||||
Corporate securities | 0 | 300,331 | 0 | 300,331 | ||||||||||||
Collateralized debt obligations | 0 | 0 | 36,344 | 36,344 | ||||||||||||
Equity securities: | ||||||||||||||||
Common stock: | ||||||||||||||||
Public utilities | 107,102 | 0 | 0 | 107,102 | ||||||||||||
Banks, trusts and insurance companies | 9,963 | 0 | 0 | 9,963 | ||||||||||||
Energy and other | 181,333 | 0 | 0 | 181,333 | ||||||||||||
Non-redeemable preferred stock | 0 | 25,845 | 0 | 25,845 | ||||||||||||
Partnership interest in a private credit fund | 0 | 0 | 12,124 | 12,124 | ||||||||||||
Short-term bonds | 39,996 | 22,488 | 0 | 62,484 | ||||||||||||
Money market instruments | 188,965 | 0 | 0 | 188,965 | ||||||||||||
Total return swap | 0 | 346 | 0 | 346 | ||||||||||||
Total assets at fair value | $ | 543,487 | $ | 2,534,721 | $ | 48,468 | $ | 3,126,676 | ||||||||
December 31, 2012 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
(Amounts in thousands) | ||||||||||||||||
Assets | ||||||||||||||||
Fixed maturity securities: | ||||||||||||||||
U.S. government bonds and agencies | $ | 14,204 | $ | 0 | $ | 0 | $ | 14,204 | ||||||||
Municipal securities | 0 | 2,165,095 | 0 | 2,165,095 | ||||||||||||
Mortgage-backed securities | 0 | 30,703 | 0 | 30,703 | ||||||||||||
Corporate securities | 0 | 155,551 | 0 | 155,551 | ||||||||||||
Collateralized debt obligations | 0 | 0 | 42,801 | 42,801 | ||||||||||||
Equity securities: | ||||||||||||||||
Common stock: | ||||||||||||||||
Public utilities | 85,106 | 0 | 0 | 85,106 | ||||||||||||
Banks, trusts and insurance companies | 22,166 | 0 | 0 | 22,166 | ||||||||||||
Energy and other | 346,809 | 0 | 0 | 346,809 | ||||||||||||
Non-redeemable preferred stock | 0 | 11,701 | 0 | 11,701 | ||||||||||||
Partnership interest in a private credit fund | 0 | 0 | 11,306 | 11,306 | ||||||||||||
Short-term bonds | 0 | 24,530 | 0 | 24,530 | ||||||||||||
Money market instruments | 270,123 | 0 | 0 | 270,123 | ||||||||||||
Total assets at fair value | $ | 738,408 | $ | 2,387,580 | $ | 54,107 | $ | 3,180,095 | ||||||||
Liabilities | ||||||||||||||||
Equity contracts | $ | 175 | $ | 0 | $ | 0 | $ | 175 | ||||||||
Interest rate swap | 0 | 103 | 0 | 103 | ||||||||||||
Total liabilities at fair value | $ | 175 | $ | 103 | $ | 0 | $ | 278 | ||||||||
Summary Of Changes In Fair Value Of Level 3 Financial Assets And Financial Liabilities Held At Fair Value | The following tables present a summary of changes in fair value of Level 3 financial assets and financial liabilities held at fair value. | |||||||||||||||
Three Months Ended September 30, | ||||||||||||||||
2013 | 2012 | |||||||||||||||
Collateralized | Partnership | Collateralized | Partnership | |||||||||||||
Debt Obligations | Interest in a | Debt Obligations | Interest in a | |||||||||||||
Private Credit | Private Credit | |||||||||||||||
Fund | Fund | |||||||||||||||
(Amounts in thousands) | ||||||||||||||||
Beginning Balance | $ | 38,992 | $ | 11,990 | $ | 76,325 | $ | 11,030 | ||||||||
Realized gains (losses) included in earnings | 5,616 | 134 | 5,032 | (455 | ) | |||||||||||
Settlements | (8,264 | ) | 0 | 0 | 0 | |||||||||||
Ending Balance | $ | 36,344 | $ | 12,124 | $ | 81,357 | $ | 10,575 | ||||||||
The amount of total gains (losses) for the period included in earnings attributable to assets still held at September 30 | $ | 5,616 | $ | 134 | $ | 5,032 | $ | (455 | ) | |||||||
Nine Months Ended September 30, | ||||||||||||||||
2013 | 2012 | |||||||||||||||
Collateralized | Partnership | Collateralized | Partnership | |||||||||||||
Debt Obligations | Interest in a | Debt Obligations | Interest in a | |||||||||||||
Private Credit | Private Credit | |||||||||||||||
Fund | Fund | |||||||||||||||
(Amounts in thousands) | ||||||||||||||||
Beginning Balance | $ | 42,801 | $ | 11,306 | $ | 47,503 | $ | 10,008 | ||||||||
Realized gains included in earnings | 5,993 | 818 | 8,854 | 567 | ||||||||||||
Purchase | 0 | 0 | 25,000 | 0 | ||||||||||||
Sales | (4,186 | ) | 0 | 0 | 0 | |||||||||||
Settlements | (8,264 | ) | 0 | 0 | 0 | |||||||||||
Ending Balance | $ | 36,344 | $ | 12,124 | $ | 81,357 | $ | 10,575 | ||||||||
The amount of total gains for the period included in earnings attributable to assets still held at September 30 | $ | 6,510 | $ | 818 | $ | 8,854 | $ | 567 | ||||||||
Derivative_Financial_Instrumen1
Derivative Financial Instruments (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
General Discussion of Derivative Instruments and Hedging Activities [Abstract] | ||||||||||||||||
Summary Of Location And Amounts Of Derivative Fair Values In The Consolidated Balance Sheets | The following tables present the location and amounts of derivative fair values in the consolidated balance sheets and derivative gains in the consolidated statements of operations: | |||||||||||||||
Asset Derivatives | Liability Derivatives | |||||||||||||||
September 30, 2013 | December 31, 2012 | September 30, 2013 | December 31, 2012 | |||||||||||||
(Amount in thousands) | ||||||||||||||||
Total return swap - Other assets | $ | 346 | $ | 0 | $ | 0 | $ | 0 | ||||||||
Equity contracts - Other liabilities | 0 | 0 | 0 | 175 | ||||||||||||
Interest rate swap - Other liabilities | 0 | 0 | 0 | 103 | ||||||||||||
Total derivatives | $ | 346 | $ | 0 | $ | 0 | $ | 278 | ||||||||
Schedule Of Derivative Gains And Losses In The Consolidated Statements Of Operations | ||||||||||||||||
Gain Recognized in Income | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
(Amounts in thousands) | ||||||||||||||||
Total return swap - Net realized investment (losses) gains | $ | 381 | $ | 0 | $ | 381 | $ | 0 | ||||||||
Equity contracts - Net realized investment (losses) gains | 543 | 757 | 1,722 | 2,342 | ||||||||||||
Interest rate swap - Other revenue | 0 | 139 | 103 | 410 | ||||||||||||
Total | $ | 924 | $ | 896 | $ | 2,206 | $ | 2,752 | ||||||||
Goodwill_and_Other_Intangible_1
Goodwill and Other Intangible Assets (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||
Schedule Of Components Of Other Intangible Assets | The following table presents the components of other intangible assets as of September 30, 2013 and December 31, 2012. | |||||||||||||
Gross Carrying | Accumulated | Net Carrying | Useful Lives | |||||||||||
Amount | Amortization | Amount | ||||||||||||
(Amounts in thousands) | (in years) | |||||||||||||
As of September 30, 2013: | ||||||||||||||
Customer relationships | $ | 51,755 | $ | (23,266 | ) | $ | 28,489 | 11 | ||||||
Trade names | 15,400 | (3,048 | ) | 12,352 | 24 | |||||||||
Technology | 4,300 | (2,043 | ) | 2,257 | 10 | |||||||||
Favorable leases | 1,725 | (1,725 | ) | 0 | 3 | |||||||||
Software | 550 | (550 | ) | 0 | 2 | |||||||||
Total intangible assets, net | $ | 73,730 | $ | (30,632 | ) | $ | 43,098 | |||||||
As of December 31, 2012: | ||||||||||||||
Customer relationships | $ | 51,755 | $ | (19,585 | ) | $ | 32,170 | 11 | ||||||
Trade names | 15,400 | (2,567 | ) | 12,833 | 24 | |||||||||
Technology | 4,300 | (1,720 | ) | 2,580 | 10 | |||||||||
Favorable leases | 1,725 | (1,719 | ) | 6 | 3 | |||||||||
Software | 550 | (550 | ) | 0 | 2 | |||||||||
Total intangible assets, net | $ | 73,730 | $ | (26,141 | ) | $ | 47,589 | |||||||
Schedule Of Estimated Future Amortization Expense Related To Intangible Assets | The following table presents the estimated future amortization expenses related to intangible assets as of September 30, 2013: | |||||||||||||
Year Ending | Amortization Expense | |||||||||||||
(Amounts in thousands) | ||||||||||||||
Remainder of 2013 | $ | 1,495 | ||||||||||||
2014 | 5,980 | |||||||||||||
2015 | 5,980 | |||||||||||||
2016 | 5,980 | |||||||||||||
2017 | 5,253 | |||||||||||||
Thereafter | 18,410 | |||||||||||||
Total | $ | 43,098 | ||||||||||||
ShareBased_Compensation_Tables
Share-Based Compensation (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Share-based Compensation, Allocation and Classification in Financial Statements [Abstract] | |||||||||
Schedule Of Performance Vesting Restricted Stock Units Granted | Under the Company's 2005 Incentive Award Plan (the “Plan”), the Compensation Committee of the Company’s Board of Directors granted performance vesting restricted stock units to the Company’s senior management and key employees as follows: | ||||||||
Grant Year | |||||||||
2013 | 2012 | 2011 | |||||||
Three-year performance period ending December 31, | 2015 | 2014 | 2013 | ||||||
Vesting shares, target | 84,500 | 89,000 | 80,000 | ||||||
Vesting shares, maximum | 190,125 | 200,250 | 120,000 | ||||||
General_Details
General (Details) (USD $) | 3 Months Ended | 9 Months Ended | 0 Months Ended | |||||
Share data in Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Aug. 09, 2013 | Sep. 30, 2013 | Aug. 09, 2013 |
Swap [Member] | Swap [Member] | Swap [Member] | ||||||
LIBOR [Member] | ||||||||
General [Abstract] | ||||||||
Potentially dilutive securities (in shares) | 53 | 108 | 76 | 77 | ||||
Deferred policy acquisition cost amortization | $126,891,000 | $121,906,000 | $377,006,000 | $357,062,000 | ||||
Advertising expenses | 16,000,000 | 15,000,000 | ||||||
Derivative [Line Items] | ||||||||
Term of swap agreement | 3 years | |||||||
Notional amount | 80,000,000 | 80,000,000 | ||||||
Basis spread on variable rate | 1.20% | |||||||
Swap agreement collateral | 40,000,000 | |||||||
Unsecured Debt | $40,000,000 | $40,000,000 | $0 |
Fair_Value_of_Financial_Instru2
Fair Value of Financial Instruments (Narrative) (Details) (USD $) | Sep. 30, 2013 |
Level 2 [Member] | Secured Notes One [Member] | |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |
Secured notes | $120,000,000 |
Level 2 [Member] | Secured Notes Two [Member] | |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |
Secured notes | 20,000,000 |
Swap [Member] | |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |
Swap agreement collateral | $40,000,000 |
Fair_Value_of_Financial_Instru3
Fair Value of Financial Instruments (Estimated Fair Values Of Financial Instruments) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Assets | ||
Total return swap | $346 | $0 |
Liabilities | ||
Unsecured Debt | 40,000 | 0 |
Investments [Member] | ||
Assets | ||
Investments | 3,126,330 | 3,180,095 |
Interest Rate Swap [Member] | ||
Liabilities | ||
Interest rate swap agreements | 0 | 103 |
Secured Notes [Member] | ||
Liabilities | ||
Secured notes payable | 140,000 | 140,000 |
Equity Contract [Member] | ||
Liabilities | ||
Equity contracts | $0 | $175 |
Fair_Value_Option_Gains_And_Lo
Fair Value Option (Gains And Losses Due To Changes In Fair Value Of Investments) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||||
(Losses) gains due to changes in fair value of investments | $21,815 | $44,783 | ($13,444) | $69,338 |
Fixed maturity securities [Member] | ||||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||||
(Losses) gains due to changes in fair value of investments | -11,295 | 19,198 | -81,268 | 50,013 |
Equity securities [Member] | ||||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||||
(Losses) gains due to changes in fair value of investments | 32,602 | 25,629 | 67,625 | 20,153 |
Short-term investments [Member] | ||||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||||
(Losses) gains due to changes in fair value of investments | $508 | ($44) | $199 | ($828) |
Fair_Value_Measurement_Narrati
Fair Value Measurement (Narrative) (Details) (USD $) | 9 Months Ended | ||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 |
transfers | transfers | Minimum [Member] | Commercial Mortgage Backed Securities [Member] | Commercial Mortgage Backed Securities [Member] | |
broker | Level 2 [Member] | Level 2 [Member] | |||
Fair Value Measurement [Line Items] | |||||
Percentage of portfolio of unadjusted fair values obtained | 98.00% | ||||
Percentage of portfolio of specific unadjusted broker quotes obtained | 2.00% | ||||
Number of knowledgeable outside security brokers consulted to determine fair value | 1 | ||||
Trading securities, fair value disclosure | $16.70 | $4.30 | |||
Transfers between Levels 1, 2, and 3 of the fair value hierarchy | 0 | 0 |
Fair_Value_Measurement_Schedul
Fair Value Measurement (Schedule Of Assets And Liabilities Measured At Fair Value On A Recurring Basis Valuation Techniques) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Fair Value Measurement [Line Items] | ||
Assets | $3,126,676 | $3,180,095 |
Liabilities | 278 | |
Level 1 [Member] | ||
Fair Value Measurement [Line Items] | ||
Assets | 543,487 | 738,408 |
Liabilities | 175 | |
Level 2 [Member] | ||
Fair Value Measurement [Line Items] | ||
Assets | 2,534,721 | 2,387,580 |
Liabilities | 103 | |
Level 3 [Member] | ||
Fair Value Measurement [Line Items] | ||
Assets | 48,468 | 54,107 |
Liabilities | 0 | |
Short-term bonds [Member] | ||
Fair Value Measurement [Line Items] | ||
Assets | 62,484 | 24,530 |
Short-term bonds [Member] | Level 1 [Member] | ||
Fair Value Measurement [Line Items] | ||
Assets | 39,996 | 0 |
Short-term bonds [Member] | Level 2 [Member] | ||
Fair Value Measurement [Line Items] | ||
Assets | 22,488 | 24,530 |
Short-term bonds [Member] | Level 3 [Member] | ||
Fair Value Measurement [Line Items] | ||
Assets | 0 | 0 |
Money market instruments [Member] | ||
Fair Value Measurement [Line Items] | ||
Assets | 188,965 | 270,123 |
Money market instruments [Member] | Level 1 [Member] | ||
Fair Value Measurement [Line Items] | ||
Assets | 188,965 | 270,123 |
Money market instruments [Member] | Level 2 [Member] | ||
Fair Value Measurement [Line Items] | ||
Assets | 0 | 0 |
Money market instruments [Member] | Level 3 [Member] | ||
Fair Value Measurement [Line Items] | ||
Assets | 0 | 0 |
Equity contracts [Member] | ||
Fair Value Measurement [Line Items] | ||
Liabilities | 175 | |
Equity contracts [Member] | Level 1 [Member] | ||
Fair Value Measurement [Line Items] | ||
Liabilities | 175 | |
Equity contracts [Member] | Level 2 [Member] | ||
Fair Value Measurement [Line Items] | ||
Liabilities | 0 | |
Equity contracts [Member] | Level 3 [Member] | ||
Fair Value Measurement [Line Items] | ||
Liabilities | 0 | |
Interest rate swap agreements [Member] | ||
Fair Value Measurement [Line Items] | ||
Liabilities | 103 | |
Interest rate swap agreements [Member] | Level 1 [Member] | ||
Fair Value Measurement [Line Items] | ||
Liabilities | 0 | |
Interest rate swap agreements [Member] | Level 2 [Member] | ||
Fair Value Measurement [Line Items] | ||
Liabilities | 103 | |
Interest rate swap agreements [Member] | Level 3 [Member] | ||
Fair Value Measurement [Line Items] | ||
Liabilities | 0 | |
Total Return Swap [Member] | ||
Fair Value Measurement [Line Items] | ||
Assets | 346 | |
Total Return Swap [Member] | Level 1 [Member] | ||
Fair Value Measurement [Line Items] | ||
Assets | 0 | |
Total Return Swap [Member] | Level 2 [Member] | ||
Fair Value Measurement [Line Items] | ||
Assets | 346 | |
Total Return Swap [Member] | Level 3 [Member] | ||
Fair Value Measurement [Line Items] | ||
Assets | 0 | |
Fixed maturity securities [Member] | U.S. government bonds and agencies [Member] | ||
Fair Value Measurement [Line Items] | ||
Assets | 16,128 | 14,204 |
Fixed maturity securities [Member] | U.S. government bonds and agencies [Member] | Level 1 [Member] | ||
Fair Value Measurement [Line Items] | ||
Assets | 16,128 | 14,204 |
Fixed maturity securities [Member] | U.S. government bonds and agencies [Member] | Level 2 [Member] | ||
Fair Value Measurement [Line Items] | ||
Assets | 0 | 0 |
Fixed maturity securities [Member] | U.S. government bonds and agencies [Member] | Level 3 [Member] | ||
Fair Value Measurement [Line Items] | ||
Assets | 0 | 0 |
Fixed maturity securities [Member] | Municipal securities [Member] | ||
Fair Value Measurement [Line Items] | ||
Assets | 2,149,615 | 2,165,095 |
Fixed maturity securities [Member] | Municipal securities [Member] | Level 1 [Member] | ||
Fair Value Measurement [Line Items] | ||
Assets | 0 | 0 |
Fixed maturity securities [Member] | Municipal securities [Member] | Level 2 [Member] | ||
Fair Value Measurement [Line Items] | ||
Assets | 2,149,615 | 2,165,095 |
Fixed maturity securities [Member] | Municipal securities [Member] | Level 3 [Member] | ||
Fair Value Measurement [Line Items] | ||
Assets | 0 | 0 |
Fixed maturity securities [Member] | Mortgage-backed securities [Member] | ||
Fair Value Measurement [Line Items] | ||
Assets | 36,096 | 30,703 |
Fixed maturity securities [Member] | Mortgage-backed securities [Member] | Level 1 [Member] | ||
Fair Value Measurement [Line Items] | ||
Assets | 0 | 0 |
Fixed maturity securities [Member] | Mortgage-backed securities [Member] | Level 2 [Member] | ||
Fair Value Measurement [Line Items] | ||
Assets | 36,096 | 30,703 |
Fixed maturity securities [Member] | Mortgage-backed securities [Member] | Level 3 [Member] | ||
Fair Value Measurement [Line Items] | ||
Assets | 0 | 0 |
Fixed maturity securities [Member] | Corporate securities [Member] | ||
Fair Value Measurement [Line Items] | ||
Assets | 300,331 | 155,551 |
Fixed maturity securities [Member] | Corporate securities [Member] | Level 1 [Member] | ||
Fair Value Measurement [Line Items] | ||
Assets | 0 | 0 |
Fixed maturity securities [Member] | Corporate securities [Member] | Level 2 [Member] | ||
Fair Value Measurement [Line Items] | ||
Assets | 300,331 | 155,551 |
Fixed maturity securities [Member] | Corporate securities [Member] | Level 3 [Member] | ||
Fair Value Measurement [Line Items] | ||
Assets | 0 | 0 |
Fixed maturity securities [Member] | Collateralized Debt Obligations [Member] | ||
Fair Value Measurement [Line Items] | ||
Assets | 36,344 | 42,801 |
Fixed maturity securities [Member] | Collateralized Debt Obligations [Member] | Level 1 [Member] | ||
Fair Value Measurement [Line Items] | ||
Assets | 0 | 0 |
Fixed maturity securities [Member] | Collateralized Debt Obligations [Member] | Level 2 [Member] | ||
Fair Value Measurement [Line Items] | ||
Assets | 0 | 0 |
Fixed maturity securities [Member] | Collateralized Debt Obligations [Member] | Level 3 [Member] | ||
Fair Value Measurement [Line Items] | ||
Assets | 36,344 | 42,801 |
Equity securities [Member] | Public utilities [Member] | ||
Fair Value Measurement [Line Items] | ||
Assets | 107,102 | 85,106 |
Equity securities [Member] | Public utilities [Member] | Level 1 [Member] | ||
Fair Value Measurement [Line Items] | ||
Assets | 107,102 | 85,106 |
Equity securities [Member] | Public utilities [Member] | Level 2 [Member] | ||
Fair Value Measurement [Line Items] | ||
Assets | 0 | 0 |
Equity securities [Member] | Public utilities [Member] | Level 3 [Member] | ||
Fair Value Measurement [Line Items] | ||
Assets | 0 | 0 |
Equity securities [Member] | Banks, trusts and insurance companies [Member] | ||
Fair Value Measurement [Line Items] | ||
Assets | 9,963 | 22,166 |
Equity securities [Member] | Banks, trusts and insurance companies [Member] | Level 1 [Member] | ||
Fair Value Measurement [Line Items] | ||
Assets | 9,963 | 22,166 |
Equity securities [Member] | Banks, trusts and insurance companies [Member] | Level 2 [Member] | ||
Fair Value Measurement [Line Items] | ||
Assets | 0 | 0 |
Equity securities [Member] | Banks, trusts and insurance companies [Member] | Level 3 [Member] | ||
Fair Value Measurement [Line Items] | ||
Assets | 0 | 0 |
Equity securities [Member] | Energy and other [Member] | ||
Fair Value Measurement [Line Items] | ||
Assets | 181,333 | 346,809 |
Equity securities [Member] | Energy and other [Member] | Level 1 [Member] | ||
Fair Value Measurement [Line Items] | ||
Assets | 181,333 | 346,809 |
Equity securities [Member] | Energy and other [Member] | Level 2 [Member] | ||
Fair Value Measurement [Line Items] | ||
Assets | 0 | 0 |
Equity securities [Member] | Energy and other [Member] | Level 3 [Member] | ||
Fair Value Measurement [Line Items] | ||
Assets | 0 | 0 |
Equity securities [Member] | Non-redeemable preferred stock [Member] | ||
Fair Value Measurement [Line Items] | ||
Assets | 25,845 | 11,701 |
Equity securities [Member] | Non-redeemable preferred stock [Member] | Level 1 [Member] | ||
Fair Value Measurement [Line Items] | ||
Assets | 0 | 0 |
Equity securities [Member] | Non-redeemable preferred stock [Member] | Level 2 [Member] | ||
Fair Value Measurement [Line Items] | ||
Assets | 25,845 | 11,701 |
Equity securities [Member] | Non-redeemable preferred stock [Member] | Level 3 [Member] | ||
Fair Value Measurement [Line Items] | ||
Assets | 0 | 0 |
Equity securities [Member] | Partnership Interest In Private Credit Fund [Member] | ||
Fair Value Measurement [Line Items] | ||
Assets | 12,124 | 11,306 |
Equity securities [Member] | Partnership Interest In Private Credit Fund [Member] | Level 1 [Member] | ||
Fair Value Measurement [Line Items] | ||
Assets | 0 | 0 |
Equity securities [Member] | Partnership Interest In Private Credit Fund [Member] | Level 2 [Member] | ||
Fair Value Measurement [Line Items] | ||
Assets | 0 | 0 |
Equity securities [Member] | Partnership Interest In Private Credit Fund [Member] | Level 3 [Member] | ||
Fair Value Measurement [Line Items] | ||
Assets | $12,124 | $11,306 |
Fair_Value_Measurement_Summary
Fair Value Measurement (Summary Of Changes In Fair Value Of Level 3 Financial Assets And Financial Liabilities Held At Fair Value) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Collateralized Debt Obligations [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning Balance | $38,992 | $76,325 | $42,801 | $47,503 |
Realized (losses) gains included in earnings | 5,616 | 5,032 | 5,993 | 8,854 |
Purchases | 0 | 25,000 | ||
Sales | -4,186 | 0 | ||
Settlements | -8,264 | 0 | -8,264 | 0 |
Ending Balance | 36,344 | 81,357 | 36,344 | 81,357 |
The amount of total gains (losses) for the period included in earnings attributable to assets still held at September 30 | 5,616 | 5,032 | 6,510 | 8,854 |
Partnership Interest In Private Credit Fund [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning Balance | 11,990 | 11,030 | 11,306 | 10,008 |
Realized (losses) gains included in earnings | 134 | -455 | 818 | 567 |
Purchases | 0 | 0 | ||
Sales | 0 | 0 | ||
Settlements | 0 | 0 | 0 | 0 |
Ending Balance | 12,124 | 10,575 | 12,124 | 10,575 |
The amount of total gains (losses) for the period included in earnings attributable to assets still held at September 30 | $134 | ($455) | $818 | $567 |
Derivative_Financial_Instrumen2
Derivative Financial Instruments (Narrative) (Details) (USD $) | Sep. 30, 2013 | Feb. 06, 2009 | Mar. 03, 2008 | Oct. 04, 2011 | Oct. 04, 2011 | Aug. 09, 2013 | Sep. 30, 2013 | Aug. 09, 2013 |
Credit Facility [Member] | Loans [Member] | Bank Of America [Member] | Union Bank [Member] | Swap [Member] | Swap [Member] | LIBOR [Member] | ||
Interest rate swap agreements [Member] | Interest rate swap agreements [Member] | Interest rate swap agreements [Member] | Interest rate swap agreements [Member] | Swap [Member] | ||||
Derivative Financial Instruments [Line Items] | ||||||||
Term of swap agreement | 3 years | |||||||
Notional amount | $80,000,000 | |||||||
Basis spread on variable rate | 1.20% | |||||||
Swap agreement collateral | 40,000,000 | |||||||
Secured notes | 120,000,000 | 18,000,000 | ||||||
Fixed rate | 1.93% | 4.25% | ||||||
Maturity date of senior notes | January 3, 2012 | |||||||
Loan maximum borrowing capacity | $18,000,000 | $20,000,000 | ||||||
Floating rate, LIBOR plus basis points (as a percentage) | 0.50% | 0.40% | ||||||
Loan mature date | 1-Mar-13 | 2-Jan-15 |
Derivative_Financial_Instrumen3
Derivative Financial Instruments (Summary Of Location And Amounts Of Derivative Fair Values In The Consolidated Balance Sheets) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | |||
Derivative Financial Instruments [Line Items] | |||
Asset Derivatives | $346 | $0 | |
Non-hedging derivatives [Member] | |||
Derivative Financial Instruments [Line Items] | |||
Asset Derivatives | 346 | 0 | |
Liability Derivatives | 0 | 278 | |
Non-hedging derivatives [Member] | Interest rate swap agreements [Member] | Other liabilities [Member] | |||
Derivative Financial Instruments [Line Items] | |||
Liability Derivatives | 0 | 103 | |
Non-hedging derivatives [Member] | Interest rate swap agreements [Member] | Other Assets [Member] | |||
Derivative Financial Instruments [Line Items] | |||
Asset Derivatives | 346 | 0 | |
Liability Derivatives | 0 | 0 | |
Non-hedging derivatives [Member] | Equity contracts [Member] | Other liabilities [Member] | |||
Derivative Financial Instruments [Line Items] | |||
Asset Derivatives | 0 | 0 | |
Liability Derivatives | 0 | 175 | |
Interest Rate Swap [Member] | Other liabilities [Member] | |||
Derivative Financial Instruments [Line Items] | |||
Asset Derivatives | $0 | $0 |
Derivative_Financial_Instrumen4
Derivative Financial Instruments (Schedule Of Derivative Gains And Losses In The Consolidated Statements Of Operations) (Details) (Derivatives Not Designated as Hedging Instrument [Member], USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Derivative Financial Instruments [Line Items] | ||||
Gain Recognized in Income (Loss) | $924 | $896 | $2,206 | $2,752 |
Interest rate swap agreements [Member] | Other revenue [Member] | ||||
Derivative Financial Instruments [Line Items] | ||||
Gain Recognized in Income (Loss) | 0 | 139 | 103 | 410 |
Total Return Swap [Member] | Other revenue [Member] | ||||
Derivative Financial Instruments [Line Items] | ||||
Gain Recognized in Income (Loss) | 381 | 0 | 381 | 0 |
Equity contracts [Member] | Net realized investment (losses) gains [Member] | ||||
Derivative Financial Instruments [Line Items] | ||||
Gain Recognized in Income (Loss) | $543 | $757 | $1,722 | $2,342 |
Goodwill_and_Other_Intangible_2
Goodwill and Other Intangible Assets (Narrative) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Intangible assets amortization expense | $1.50 | $1.50 | $4.50 | $4.60 |
Goodwill_and_Other_Intangible_3
Goodwill and Other Intangible Assets (Schedule Of Components Of Other Intangible Assets) (Details) (USD $) | 9 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $73,730 | $73,730 |
Accumulated Amortization | -30,632 | -26,141 |
Net Carrying Amount | 43,098 | 47,589 |
Customer relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 51,755 | 51,755 |
Accumulated Amortization | -23,266 | -19,585 |
Net Carrying Amount | 28,489 | 32,170 |
Useful Lives (in years) | 11 years | 11 years |
Trade names [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 15,400 | 15,400 |
Accumulated Amortization | -3,048 | -2,567 |
Net Carrying Amount | 12,352 | 12,833 |
Useful Lives (in years) | 24 years | 24 years |
Software [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 4,300 | 4,300 |
Accumulated Amortization | -2,043 | -1,720 |
Net Carrying Amount | 2,257 | 2,580 |
Useful Lives (in years) | 10 years | 10 years |
Technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 1,725 | 1,725 |
Accumulated Amortization | -1,725 | -1,719 |
Net Carrying Amount | 0 | 6 |
Useful Lives (in years) | 3 years | 3 years |
Favorable leases [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 550 | 550 |
Accumulated Amortization | -550 | -550 |
Net Carrying Amount | $0 | $0 |
Useful Lives (in years) | 2 years | 2 years |
Goodwill_and_Other_Intangible_4
Goodwill and Other Intangible Assets (Schedule Of Estimated Future Amortization Expense Related To Intangible Assets) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Remainder of 2013 | $1,495 | |
2014 | 5,980 | |
2015 | 5,980 | |
2016 | 5,980 | |
2017 | 5,253 | |
Thereafter | 18,410 | |
Net Carrying Amount | $43,098 | $47,589 |
ShareBased_Compensation_Narrat
Share-Based Compensation (Narrative) (Details) | 9 Months Ended |
Sep. 30, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Performance period of restricted stock units (in years) | 3 years |
Options granted prior to 2008 [Member] | Minimum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Option vesting term (in years) | 4 years |
Options granted prior to 2008 [Member] | Maximum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Option vesting term (in years) | 5 years |
Options granted subsequent to January 1, 2008 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Option vesting term (in years) | 4 years |
ShareBased_Compensation_Schedu
Share-Based Compensation (Schedule Of Performance Vesting Restricted Stock Units Granted) (Details) | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Share-based Compensation, Allocation and Classification in Financial Statements [Abstract] | |||
Three-year performance period ending December 31, | 2015 | 2014 | 2013 |
Vesting shares, target | 84,500 | 89,000 | 80,000 |
Vesting shares, maximum | 190,125 | 200,250 | 120,000 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 |
Components of Income Tax Expense (Benefit), Continuing Operations [Abstract] | |
Increase in unrecognized tax benefit | $4.70 |