Document_And_Entity_Informatio
Document And Entity Information | 3 Months Ended | |
Mar. 31, 2015 | Apr. 24, 2015 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | FALSE | |
Document Period End Date | 31-Mar-15 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 | |
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 | 55,152,462 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
ASSETS | ||
Fixed maturity securities (amortized cost $2,772,702; $2,503,494) | $2,888,943 | $2,618,400 |
Equity securities (cost $362,124; $387,851) | 380,816 | 412,880 |
Short-term investments (cost $174,040; $373,180) | 173,604 | 372,542 |
Total investments | 3,443,363 | 3,403,822 |
Cash | 234,576 | 289,907 |
Receivables: | ||
Premiums | 417,323 | 390,009 |
Accrued investment income | 40,828 | 38,737 |
Other | 21,744 | 21,202 |
Total receivables | 479,895 | 449,948 |
Deferred policy acquisition costs | 199,101 | 197,202 |
Fixed assets, net | 156,989 | 158,976 |
Current income taxes | 2,817 | 503 |
Deferred income taxes | 326 | 0 |
Goodwill | 42,796 | 42,796 |
Other intangible assets, net | 35,528 | 35,623 |
Other assets | 22,666 | 21,512 |
Total assets | 4,618,057 | 4,600,289 |
Liabilities | ||
Losses and loss adjustment expenses | 1,105,877 | 1,091,797 |
Unearned premiums | 1,025,627 | 999,798 |
Notes payable | 290,000 | 290,000 |
Accounts payable and accrued expenses | 118,561 | 130,887 |
Deferred income taxes | 0 | 5,333 |
Other liabilities | 208,028 | 207,028 |
Total liabilities | 2,748,093 | 2,724,843 |
Commitments and contingencies | ||
Shareholders’ equity: | ||
Common stock without par value or stated value: Authorized 70,000 shares; issued and outstanding 55,147; 55,121 | 90,105 | 88,705 |
Additional paid-in capital | 4,812 | 3,804 |
Retained earnings | 1,775,047 | 1,782,937 |
Total shareholders’ equity | 1,869,964 | 1,875,446 |
Total liabilities and shareholders’ equity | $4,618,057 | $4,600,289 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ||
Amortized cost on fixed maturities trading investments | $2,772,702 | $2,503,494 |
Cost - equity security trading investments | 362,124 | 387,851 |
Cost - short-term investments | $174,040 | $373,180 |
Common Stock | ||
Common stock, no par value | $0 | $0 |
Common stock, shares authorized | 70,000,000 | 70,000,000 |
Common stock, shares issued | 55,147,000 | 55,121,000 |
Common stock, shares outstanding | 55,147,000 | 55,121,000 |
Consolidated_Statements_Of_Ope
Consolidated Statements Of Operations (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Revenues: | ||
Net premiums earned | $720,737 | $683,701 |
Net investment income | 31,506 | 30,242 |
Net realized investment (losses) gains | -9,961 | 46,712 |
Other | 2,266 | 2,301 |
Total revenues | 744,548 | 762,956 |
Expenses: | ||
Losses and loss adjustment expenses | 514,400 | 476,603 |
Policy acquisition costs | 133,847 | 129,814 |
Other operating expenses | 65,692 | 54,004 |
Interest | 750 | 505 |
Total expenses | 714,689 | 660,926 |
Income before income taxes | 29,859 | 102,030 |
Income tax expense | 3,694 | 29,381 |
Net income | $26,165 | $72,649 |
Net income per share: | ||
Basic (in dollars per share) | $0.47 | $1.32 |
Diluted (in dollars per share) | $0.47 | $1.32 |
Weighted average shares outstanding: | ||
Basic (in shares) | 55,139 | 54,977 |
Diluted (in shares) | 55,159 | 54,986 |
Dividends paid per share (in dollars per share) | $0.62 | $0.62 |
Consolidated_Statements_Of_Com
Consolidated Statements Of Comprehensive (Loss) Income (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Statement of Comprehensive Income [Abstract] | ||
Net (loss) income | $26,165 | $72,649 |
Other comprehensive income, before tax: | ||
Gains on hedging instrument | 0 | 0 |
Other comprehensive income, before tax: | 0 | 0 |
Income tax expense related to gains on hedging instrument | 0 | 0 |
Other comprehensive income, net of tax: | 0 | 0 |
Comprehensive income | $26,165 | $72,649 |
Consolidated_Statements_Of_Cas
Consolidated Statements Of Cash Flows (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | $26,165 | $72,649 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 7,107 | 6,760 |
Net realized investment losses (gains) | 9,961 | -46,712 |
Bond amortization, net | 5,213 | 4,153 |
Excess tax benefit from exercise of stock options | -82 | 0 |
Increase in premiums receivables | -22,214 | -26,448 |
Change in current and deferred income taxes | -6,102 | 10,643 |
Increase in deferred policy acquisition costs | -1,899 | -6,852 |
(Decrease) increase in unpaid losses and loss adjustment expenses | -4,597 | 5,061 |
Increase in unearned premiums | 18,866 | 39,995 |
Decrease in accounts payable and accrued expenses | -38,258 | -13,626 |
Share-based compensation | 1,043 | 398 |
Changes in other payables | 7,543 | -6,820 |
Other, net | 8,706 | 10,245 |
Net cash provided by operating activities | 11,452 | 49,446 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Fixed maturities available-for-sale in nature: Purchases | -374,582 | -177,508 |
Fixed maturities available-for-sale in nature: Sales | 16,733 | 73,911 |
Fixed maturities available-for-sale in nature: Calls or maturities | 87,365 | 59,633 |
Equity securities available-for-sale in nature: | ||
Purchases | -246,085 | -242,958 |
Sales | 267,175 | 157,453 |
Changes in securities payable and receivable | 13,638 | -678 |
Net decrease in short-term investments and purchased options | 198,620 | 12,206 |
Purchase of fixed assets | -5,928 | -6,445 |
Sale of fixed assets | 58 | 151 |
Business acquisition, net of cash acquired | 7,771 | 0 |
Other, net | 1,142 | 840 |
Net cash used in investing activities | -34,093 | -123,395 |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Dividends paid to shareholders | -34,055 | -33,811 |
Excess tax benefit from exercise of stock options | 82 | 0 |
Proceeds from stock options exercised | 1,283 | 84 |
Proceeds from bank loan | 0 | 80,000 |
Net cash (used in) provided by financing activities | -32,690 | 46,273 |
Net decrease in cash | -55,331 | -27,676 |
Cash: | ||
Beginning of the year | 289,907 | 266,508 |
End of period | 234,576 | 238,832 |
SUPPLEMENTAL CASH FLOW DISCLOSURE | ||
Interest paid | 692 | 477 |
Income taxes paid | $9,798 | $18,737 |
General
General | 3 Months Ended |
Mar. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [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, 2014. | |
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 March 31, 2015 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 that was included in the annual financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014. Readers are urged to review the Company’s Annual Report on Form 10-K for the year ended December 31, 2014 for more complete descriptions and discussions. Operating results and cash flows for the three months ended March 31, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015. | |
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, 2014). | |
Earnings per Share | |
Potentially dilutive securities representing approximately 2,000 and 48,000 shares of common stock for the three months ended March 31, 2015 and 2014, 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 $133.8 million and $129.8 million for the three months ended March 31, 2015 and 2014, respectively. The Company does not defer advertising expenditures but expenses them as incurred. The Company recorded net advertising expenses of approximately 16.0 million and $6.4 million for the three months ended March 31, 2015 and 2014, respectively. |
Recently_Issued_Accounting_Sta
Recently Issued Accounting Standards | 3 Months Ended |
Mar. 31, 2015 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recently Issued Accounting Standards | Recently Issued Accounting Standards |
In May 2014, the Financial Accounting Standards Board (“FASB”) issued a new standard that requires entities to apply a five-step model to determine the amount and timing of revenue recognition. The model specifies, among other criteria, that revenue should be recognized when an entity transfers control of goods or services to a customer at the amount at which the entity expects to be entitled. The new standard will be effective for fiscal years and interim periods within those years that begin after December 15, 2016. Early adoption is not permitted. The Company is in the process of evaluating the impact on the consolidated financial statements. |
Fair_Value_of_Financial_Instru
Fair Value of Financial Instruments | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
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, options sold, total return 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 March 31, 2015 and December 31, 2014: | ||||||||
March 31, 2015 | December 31, 2014 | |||||||
(Amounts in thousands) | ||||||||
Assets | ||||||||
Investments | $ | 3,443,363 | $ | 3,403,822 | ||||
Liabilities | ||||||||
Options sold | $ | 888 | $ | 194 | ||||
Total return swaps | $ | 1,412 | $ | 4,025 | ||||
Secured notes | $ | 140,000 | $ | 140,000 | ||||
Unsecured note | $ | 150,000 | $ | 150,000 | ||||
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. | ||||||||
Options Sold | ||||||||
The Company writes covered call options through listed and over-the-counter exchanges. When the Company writes an option, an amount equal to the premium received by the Company is recorded as a liability and is subsequently adjusted to the current fair value of the option written. Premiums received from writing options that expire unexercised are treated by the Company on the expiration date as realized gains from investments. If a call option is exercised, the premium is added to the proceeds from the sale of the underlying security in determining whether the Company has realized a gain or loss. The Company, as writer of an option, bears the market risk of an unfavorable change in the price of the security underlying the written option. For additional disclosures regarding methods and assumptions used in estimating fair values of these securities, see Note 5. | ||||||||
Total return swaps | ||||||||
The fair values of the total return swaps reflect the estimated amounts that, upon termination of the contracts, would be received for selling an asset or paid to transfer a liability in an orderly transaction at March 31, 2015 and December 31, 2014 based on models using inputs, such as interest rate yield curves and credit spreads, 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 secured note and $20 million secured note, 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 $150 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 | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
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 March 31, | |||||||||
2015 | 2014 | ||||||||
(Amounts in thousands) | |||||||||
Fixed maturity securities | $ | 1,251 | $ | 36,598 | |||||
Equity securities | (6,337 | ) | 9,112 | ||||||
Short-term investments | 202 | (11 | ) | ||||||
Total | $ | (4,884 | ) | $ | 45,699 | ||||
Fair_Value_Measurement
Fair Value Measurement | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
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 99.6% of its portfolio from an independent pricing service. For 0.4% 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 March 31, 2015. | ||||||||||||||||
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 in active markets. | ||||||||||||||||
Options sold: Comprised of free-standing exchange listed derivatives that are actively traded and valued based on unadjusted 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 $46.1 million and $32.5 million at March 31, 2015 and December 31, 2014, 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 swaps: Valued based on multi-dimensional 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. | ||||||||||||||||
Collateralized loan obligations: Valued based on underlying debt instruments and the appropriate benchmark spread for similar assets in active markets. | ||||||||||||||||
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/Private equity funds: 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 March 31, 2015 and December 31, 2014, and indicate the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value: | ||||||||||||||||
March 31, 2015 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
(Amounts in thousands) | ||||||||||||||||
Assets | ||||||||||||||||
Fixed maturity securities: | ||||||||||||||||
U.S. government bonds and agencies | $ | 18,226 | $ | 0 | $ | 0 | $ | 18,226 | ||||||||
Municipal securities | 0 | 2,479,879 | 0 | 2,479,879 | ||||||||||||
Mortgage-backed securities | 0 | 60,754 | 0 | 60,754 | ||||||||||||
Corporate securities | 0 | 279,964 | 0 | 279,964 | ||||||||||||
Collateralized loan obligations | 0 | 50,120 | 0 | 50,120 | ||||||||||||
Equity securities: | ||||||||||||||||
Common stock: | ||||||||||||||||
Public utilities | 92,722 | 0 | 0 | 92,722 | ||||||||||||
Banks, trusts and insurance companies | 12,919 | 0 | 0 | 12,919 | ||||||||||||
Energy and other | 231,496 | 0 | 0 | 231,496 | ||||||||||||
Non-redeemable preferred stock | 0 | 28,247 | 0 | 28,247 | ||||||||||||
Private equity funds | 0 | 0 | 15,432 | 15,432 | ||||||||||||
Short-term investments: | ||||||||||||||||
Short-term bonds | 69,990 | 14,750 | 0 | 84,740 | ||||||||||||
Money market instruments | 88,864 | 0 | 0 | 88,864 | ||||||||||||
Total assets at fair value | $ | 514,217 | $ | 2,913,714 | $ | 15,432 | $ | 3,443,363 | ||||||||
Liabilities | ||||||||||||||||
Other liabilities: | ||||||||||||||||
Total return swaps | $ | 0 | $ | 1,412 | $ | 0 | $ | 1,412 | ||||||||
Options sold | 888 | 0 | 0 | 888 | ||||||||||||
Total liabilities at fair value | $ | 888 | $ | 1,412 | $ | 0 | $ | 2,300 | ||||||||
December 31, 2014 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
(Amounts in thousands) | ||||||||||||||||
Assets | ||||||||||||||||
Fixed maturity securities: | ||||||||||||||||
U.S. government bonds and agencies | $ | 16,108 | $ | 0 | $ | 0 | $ | 16,108 | ||||||||
Municipal securities | 0 | 2,275,455 | 0 | 2,275,455 | ||||||||||||
Mortgage-backed securities | 0 | 47,691 | 0 | 47,691 | ||||||||||||
Corporate securities | 0 | 256,930 | 0 | 256,930 | ||||||||||||
Collateralized loan obligations | 0 | 22,216 | 0 | 22,216 | ||||||||||||
Equity securities: | ||||||||||||||||
Common stock: | ||||||||||||||||
Public utilities | 105,485 | 0 | 0 | 105,485 | ||||||||||||
Banks, trusts and insurance companies | 9,757 | 0 | 0 | 9,757 | ||||||||||||
Energy and other | 257,356 | 0 | 0 | 257,356 | ||||||||||||
Non-redeemable preferred stock | 0 | 28,563 | 0 | 28,563 | ||||||||||||
Private equity fund | 0 | 0 | 11,719 | 11,719 | ||||||||||||
Short-term investments: | ||||||||||||||||
Short-term bonds | 69,999 | 18,362 | 0 | 88,361 | ||||||||||||
Money market instruments | 284,181 | 0 | 0 | 284,181 | ||||||||||||
Total assets at fair value | $ | 742,886 | $ | 2,649,217 | $ | 11,719 | $ | 3,403,822 | ||||||||
Liabilities | ||||||||||||||||
Other liabilities: | ||||||||||||||||
Total return swaps | $ | 0 | $ | 4,025 | $ | 0 | $ | 4,025 | ||||||||
Options sold | 194 | 0 | 0 | 194 | ||||||||||||
Total liabilities at fair value | $ | 194 | $ | 4,025 | $ | 0 | $ | 4,219 | ||||||||
The following table presents a summary of changes in fair value of Level 3 financial assets and financial liabilities held at fair value: | ||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||
2015 | 2014 | |||||||||||||||
Private Equity | Collateralized | Private Equity | ||||||||||||||
Fund | Debt Obligations | Fund | ||||||||||||||
(Amounts in thousands) | ||||||||||||||||
Beginning Balance | $ | 11,719 | $ | 4,302 | $ | 12,548 | ||||||||||
Realized (losses) gains included in earnings | 802 | (755 | ) | 178 | ||||||||||||
Reclassification from other assets | 2,911 | 0 | 0 | |||||||||||||
Sales | 0 | (3,547 | ) | 0 | ||||||||||||
Ending Balance | $ | 15,432 | $ | 0 | $ | 12,726 | ||||||||||
The amount of total (losses) gains for the period included in earnings attributable to assets still held at March 31 | $ | 802 | $ | 0 | $ | 178 | ||||||||||
There were no transfers between Levels 1, 2, and 3 of the fair value hierarchy during the three months ended March 31, 2015 and 2014. | ||||||||||||||||
At March 31, 2015, the Company did not have any nonrecurring fair value measurements of nonfinancial assets or nonfinancial liabilities. |
Derivative_Financial_Instrumen
Derivative Financial Instruments | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
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. | ||||||||
The Company also enters into derivative contracts to enhance returns on its investment portfolio. | ||||||||
On February 13, 2014, Fannette Funding LLC (“FFL”), a special purpose investment vehicle, entered into a total return swap agreement with Citibank. Under the total return swap agreement, FFL receives the income equivalent on underlying obligations due to Citibank and pays to Citibank interest equal to LIBOR plus 135 basis points on the outstanding notional amount of the underlying obligations, which was approximately $107 million as of March 31, 2015. The total return swap is secured by approximately $30 million of U.S. Treasuries as collateral, which are included in short-term investments on the consolidated balance sheets. The agreement had an initial term of one year, subject to annual renewal, and was renewed for an additional one-year term expiring February 13, 2016. | ||||||||
On August 9, 2013, Animas Funding LLC (“AFL”), a special purpose investment vehicle, 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 $154 million as of March 31, 2015. The total return swap is secured by approximately $40 million of U.S. Treasuries as collateral, which are included in short-term investments on the consolidated balance sheets. | ||||||||
Fair value amounts, and losses and gains 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: | ||||||||
Liability Derivatives | ||||||||
March 31, 2015 | December 31, 2014 | |||||||
(Amount in thousands) | ||||||||
Total return swaps - Other liabilities | $ | (1,412 | ) | $ | (4,025 | ) | ||
Options sold - Other liabilities | (888 | ) | (194 | ) | ||||
Total derivatives | $ | (2,300 | ) | $ | (4,219 | ) | ||
Gain Recognized in Income | ||||||||
Three Months Ended March 31, | ||||||||
2015 | 2014 | |||||||
(Amounts in thousands) | ||||||||
Total return swaps - Net realized investment (losses) gains | $ | 2,988 | $ | 875 | ||||
Options sold - Net realized investment (losses) gains | 447 | 555 | ||||||
Total | $ | 3,435 | $ | 1,430 | ||||
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 | 3 Months Ended | |||||||||||||
Mar. 31, 2015 | ||||||||||||||
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 three months ended March 31, 2015. 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 March 31, 2015 and December 31, 2014. | ||||||||||||||
Gross Carrying | Accumulated | Net Carrying | Useful Lives | |||||||||||
Amount | Amortization | Amount | ||||||||||||
(Amounts in thousands) | (in years) | |||||||||||||
As of March 31, 2015: | ||||||||||||||
Customer relationships | $ | 51,755 | $ | (30,629 | ) | $ | 21,126 | 11 | ||||||
Trade names | 15,400 | (4,010 | ) | 11,390 | 24 | |||||||||
Technology | 4,300 | (2,688 | ) | 1,612 | 10 | |||||||||
Insurance license | 1,400 | 0 | 1,400 | Indefinite | ||||||||||
Total other intangible assets, net | $ | 72,855 | $ | (37,327 | ) | $ | 35,528 | |||||||
As of December 31, 2014: | ||||||||||||||
Customer relationships | $ | 51,755 | $ | (29,402 | ) | $ | 22,353 | 11 | ||||||
Trade names | 15,400 | (3,850 | ) | 11,550 | 24 | |||||||||
Technology | 4,300 | (2,580 | ) | 1,720 | 10 | |||||||||
Total other intangible assets, net | $ | 71,455 | $ | (35,832 | ) | $ | 35,623 | |||||||
Intangible assets are amortized on a straight-line basis over their useful lives. Intangible assets amortization expense was $1.5 million for each of the three months ended March 31, 2015 and 2014, respectively. The following table presents the estimated future amortization expenses related to intangible assets as of March 31, 2015: | ||||||||||||||
Year | Amortization Expense | |||||||||||||
(Amounts in thousands) | ||||||||||||||
Remainder of 2015 | $ | 4,485 | ||||||||||||
2016 | 5,980 | |||||||||||||
2017 | 5,253 | |||||||||||||
2018 | 5,239 | |||||||||||||
2019 | 4,809 | |||||||||||||
Thereafter | 8,362 | |||||||||||||
Total | $ | 34,128 | ||||||||||||
The Company recognized $1.4 million of intangible assets for a state insurance license related to the acquisition of Workmen's Auto Insurance Company (“WAIC”) during the three months ended March 31, 2015. See Note 10 for the acquisition's cost allocation. Intangible assets are reviewed annually for impairment and more frequently if potential impairment indications exist. No impairment indications were identified during any of the periods presented. |
ShareBased_Compensation
Share-Based Compensation | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
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. | |||||||||
The Company adopted the 2015 Incentive Award Plan (the “2015 Plan”) in 2015 as described fully on Form S-8 filed on February 20, 2015, subject to shareholder approval. 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 under the Company’s 2015 Plan for 2015 and under the Company’s 2005 Incentive Award Plan for 2014 and 2013 as follows: | |||||||||
Grant Year | |||||||||
2015 | 2014 | 2013 | |||||||
Three-year performance period ending December 31, | 2017 | 2016 | 2015 | ||||||
Vesting shares, target (net of forfeited) | 95,250 | 85,500 | 79,500 | ||||||
Vesting shares, maximum (net of forfeited) | 178,594 | 160,313 | 178,875 | ||||||
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. Vesting of grants will be based on the Company’s cumulative underwriting income, annual underwriting income, and net earned premium growth. As of March 31, 2015, 1,000, 8,000 and 5,000 target restricted stock units granted in 2015, 2014 and 2013, respectively, have been forfeited because the recipients are no longer employed by the Company. | |||||||||
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. |
Income_Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2015 | |
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, the positions are “more-likely-than-not” 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 $0.1 million increase to the total amount of unrecognized tax benefit related to tax uncertainties during the three months ended March 31, 2015. The increase was the result of tax positions taken regarding 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 benefits to have a significant impact on its consolidated financial statements within the next 12 months. | |
The Company and its subsidiaries file income tax returns with the Internal Revenue Service and the taxing authorities of various states. Tax years that remain subject to examination by major taxing jurisdictions are 2011 through 2013 for federal taxes and 2003 through 2013 for California state taxes. The Company is currently under examination by the California Franchise Tax Board (“FTB”) for tax years 2003 through 2013. The FTB issued Notices of Proposed Assessments to the Company for tax years 2003 through 2010, which the Company formally protested. The proposed adjustments for tax years 2003 through 2006 were affirmed following an administrative protest process with the FTB examination. The Company is considering its options for resolving the case. Management believes that the resolution of these examinations and assessments will not have a material impact on the 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 March 31, 2015, 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 Company’s ability to realize 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. |
Acquisition_Notes
Acquisition (Notes) | 3 Months Ended | |||
Mar. 31, 2015 | ||||
Business Combinations [Abstract] | ||||
Acquisition | The following table reflects the amount of revenue and net income of WAIC included in the Company's consolidated statement of operations for the three-month period ended March 31, 2015. | |||
Three Months ended March 31, 2015 | ||||
(Amounts in thousands) | ||||
WAIC | ||||
Revenue (1) | $ | 6,863 | ||
Net loss | (2,014 | ) | ||
____________ | ||||
1 | Includes net premiums earned, net investment income, and net realized investment gains/losses. |
Contingencies
Contingencies | 3 Months Ended |
Mar. 31, 2015 | |
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, 2014. | |
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, 2014. |
General_Policy
General (Policy) | 3 Months Ended |
Mar. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
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, 2014. |
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 March 31, 2015 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 that was included in the annual financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014. Readers are urged to review the Company’s Annual Report on Form 10-K for the year ended December 31, 2014 for more complete descriptions and discussions. Operating results and cash flows for the three months ended March 31, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015. | |
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, 2014). |
Earnings per Share | Potentially dilutive securities representing approximately 2,000 and 48,000 shares of common stock for the three months ended March 31, 2015 and 2014, 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 $133.8 million and $129.8 million for the three months ended March 31, 2015 and 2014, respectively. The Company does not defer advertising expenditures but expenses them as incurred. The Company recorded net advertising expenses of approximately 16.0 million and $6.4 million for the three months ended March 31, 2015 and 2014, respectively. |
Fair_Value_of_Financial_Instru1
Fair Value of Financial Instruments (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
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 March 31, 2015 and December 31, 2014: | |||||||
March 31, 2015 | December 31, 2014 | |||||||
(Amounts in thousands) | ||||||||
Assets | ||||||||
Investments | $ | 3,443,363 | $ | 3,403,822 | ||||
Liabilities | ||||||||
Options sold | $ | 888 | $ | 194 | ||||
Total return swaps | $ | 1,412 | $ | 4,025 | ||||
Secured notes | $ | 140,000 | $ | 140,000 | ||||
Unsecured note | $ | 150,000 | $ | 150,000 | ||||
Fair_Value_Option_Tables
Fair Value Option (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
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 March 31, | |||||||||
2015 | 2014 | ||||||||
(Amounts in thousands) | |||||||||
Fixed maturity securities | $ | 1,251 | $ | 36,598 | |||||
Equity securities | (6,337 | ) | 9,112 | ||||||
Short-term investments | 202 | (11 | ) | ||||||
Total | $ | (4,884 | ) | $ | 45,699 | ||||
Fair_Value_Measurement_Tables
Fair Value Measurement (Tables) | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
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 March 31, 2015 and December 31, 2014, and indicate the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value: | |||||||||||||||
March 31, 2015 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
(Amounts in thousands) | ||||||||||||||||
Assets | ||||||||||||||||
Fixed maturity securities: | ||||||||||||||||
U.S. government bonds and agencies | $ | 18,226 | $ | 0 | $ | 0 | $ | 18,226 | ||||||||
Municipal securities | 0 | 2,479,879 | 0 | 2,479,879 | ||||||||||||
Mortgage-backed securities | 0 | 60,754 | 0 | 60,754 | ||||||||||||
Corporate securities | 0 | 279,964 | 0 | 279,964 | ||||||||||||
Collateralized loan obligations | 0 | 50,120 | 0 | 50,120 | ||||||||||||
Equity securities: | ||||||||||||||||
Common stock: | ||||||||||||||||
Public utilities | 92,722 | 0 | 0 | 92,722 | ||||||||||||
Banks, trusts and insurance companies | 12,919 | 0 | 0 | 12,919 | ||||||||||||
Energy and other | 231,496 | 0 | 0 | 231,496 | ||||||||||||
Non-redeemable preferred stock | 0 | 28,247 | 0 | 28,247 | ||||||||||||
Private equity funds | 0 | 0 | 15,432 | 15,432 | ||||||||||||
Short-term investments: | ||||||||||||||||
Short-term bonds | 69,990 | 14,750 | 0 | 84,740 | ||||||||||||
Money market instruments | 88,864 | 0 | 0 | 88,864 | ||||||||||||
Total assets at fair value | $ | 514,217 | $ | 2,913,714 | $ | 15,432 | $ | 3,443,363 | ||||||||
Liabilities | ||||||||||||||||
Other liabilities: | ||||||||||||||||
Total return swaps | $ | 0 | $ | 1,412 | $ | 0 | $ | 1,412 | ||||||||
Options sold | 888 | 0 | 0 | 888 | ||||||||||||
Total liabilities at fair value | $ | 888 | $ | 1,412 | $ | 0 | $ | 2,300 | ||||||||
December 31, 2014 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
(Amounts in thousands) | ||||||||||||||||
Assets | ||||||||||||||||
Fixed maturity securities: | ||||||||||||||||
U.S. government bonds and agencies | $ | 16,108 | $ | 0 | $ | 0 | $ | 16,108 | ||||||||
Municipal securities | 0 | 2,275,455 | 0 | 2,275,455 | ||||||||||||
Mortgage-backed securities | 0 | 47,691 | 0 | 47,691 | ||||||||||||
Corporate securities | 0 | 256,930 | 0 | 256,930 | ||||||||||||
Collateralized loan obligations | 0 | 22,216 | 0 | 22,216 | ||||||||||||
Equity securities: | ||||||||||||||||
Common stock: | ||||||||||||||||
Public utilities | 105,485 | 0 | 0 | 105,485 | ||||||||||||
Banks, trusts and insurance companies | 9,757 | 0 | 0 | 9,757 | ||||||||||||
Energy and other | 257,356 | 0 | 0 | 257,356 | ||||||||||||
Non-redeemable preferred stock | 0 | 28,563 | 0 | 28,563 | ||||||||||||
Private equity fund | 0 | 0 | 11,719 | 11,719 | ||||||||||||
Short-term investments: | ||||||||||||||||
Short-term bonds | 69,999 | 18,362 | 0 | 88,361 | ||||||||||||
Money market instruments | 284,181 | 0 | 0 | 284,181 | ||||||||||||
Total assets at fair value | $ | 742,886 | $ | 2,649,217 | $ | 11,719 | $ | 3,403,822 | ||||||||
Liabilities | ||||||||||||||||
Other liabilities: | ||||||||||||||||
Total return swaps | $ | 0 | $ | 4,025 | $ | 0 | $ | 4,025 | ||||||||
Options sold | 194 | 0 | 0 | 194 | ||||||||||||
Total liabilities at fair value | $ | 194 | $ | 4,025 | $ | 0 | $ | 4,219 | ||||||||
Summary Of Changes In Fair Value Of Level 3 Financial Assets And Financial Liabilities Held At Fair Value | The following table presents a summary of changes in fair value of Level 3 financial assets and financial liabilities held at fair value: | |||||||||||||||
Three Months Ended March 31, | ||||||||||||||||
2015 | 2014 | |||||||||||||||
Private Equity | Collateralized | Private Equity | ||||||||||||||
Fund | Debt Obligations | Fund | ||||||||||||||
(Amounts in thousands) | ||||||||||||||||
Beginning Balance | $ | 11,719 | $ | 4,302 | $ | 12,548 | ||||||||||
Realized (losses) gains included in earnings | 802 | (755 | ) | 178 | ||||||||||||
Reclassification from other assets | 2,911 | 0 | 0 | |||||||||||||
Sales | 0 | (3,547 | ) | 0 | ||||||||||||
Ending Balance | $ | 15,432 | $ | 0 | $ | 12,726 | ||||||||||
The amount of total (losses) gains for the period included in earnings attributable to assets still held at March 31 | $ | 802 | $ | 0 | $ | 178 | ||||||||||
Derivative_Financial_Instrumen1
Derivative Financial Instruments (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
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: | |||||||
Liability Derivatives | ||||||||
March 31, 2015 | December 31, 2014 | |||||||
(Amount in thousands) | ||||||||
Total return swaps - Other liabilities | $ | (1,412 | ) | $ | (4,025 | ) | ||
Options sold - Other liabilities | (888 | ) | (194 | ) | ||||
Total derivatives | $ | (2,300 | ) | $ | (4,219 | ) | ||
Schedule Of Derivative Gains And Losses In The Consolidated Statements Of Operations | ||||||||
Gain Recognized in Income | ||||||||
Three Months Ended March 31, | ||||||||
2015 | 2014 | |||||||
(Amounts in thousands) | ||||||||
Total return swaps - Net realized investment (losses) gains | $ | 2,988 | $ | 875 | ||||
Options sold - Net realized investment (losses) gains | 447 | 555 | ||||||
Total | $ | 3,435 | $ | 1,430 | ||||
Goodwill_and_Other_Intangible_1
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended | |||||||||||||
Mar. 31, 2015 | ||||||||||||||
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 March 31, 2015 and December 31, 2014. | |||||||||||||
Gross Carrying | Accumulated | Net Carrying | Useful Lives | |||||||||||
Amount | Amortization | Amount | ||||||||||||
(Amounts in thousands) | (in years) | |||||||||||||
As of March 31, 2015: | ||||||||||||||
Customer relationships | $ | 51,755 | $ | (30,629 | ) | $ | 21,126 | 11 | ||||||
Trade names | 15,400 | (4,010 | ) | 11,390 | 24 | |||||||||
Technology | 4,300 | (2,688 | ) | 1,612 | 10 | |||||||||
Insurance license | 1,400 | 0 | 1,400 | Indefinite | ||||||||||
Total other intangible assets, net | $ | 72,855 | $ | (37,327 | ) | $ | 35,528 | |||||||
As of December 31, 2014: | ||||||||||||||
Customer relationships | $ | 51,755 | $ | (29,402 | ) | $ | 22,353 | 11 | ||||||
Trade names | 15,400 | (3,850 | ) | 11,550 | 24 | |||||||||
Technology | 4,300 | (2,580 | ) | 1,720 | 10 | |||||||||
Total other intangible assets, net | $ | 71,455 | $ | (35,832 | ) | $ | 35,623 | |||||||
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 March 31, 2015: | |||||||||||||
Year | Amortization Expense | |||||||||||||
(Amounts in thousands) | ||||||||||||||
Remainder of 2015 | $ | 4,485 | ||||||||||||
2016 | 5,980 | |||||||||||||
2017 | 5,253 | |||||||||||||
2018 | 5,239 | |||||||||||||
2019 | 4,809 | |||||||||||||
Thereafter | 8,362 | |||||||||||||
Total | $ | 34,128 | ||||||||||||
The Company recognized $1.4 million of intangible assets for a state insurance license related to the acquisition of Workmen's Auto Insurance Company (“WAIC”) during the three months ended March 31, 2015. See Note 10 for the acquisition's cost allocation. Intangible assets are reviewed annually for impairment and more frequently if potential impairment indications exist. No impairment indications were identified during any of the periods presented. |
ShareBased_Compensation_Tables
Share-Based Compensation (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Share-based Compensation, Allocation and Classification in Financial Statements [Abstract] | |||||||||
Schedule Of Performance Vesting Restricted Stock Units Granted | The Company adopted the 2015 Incentive Award Plan (the “2015 Plan”) in 2015 as described fully on Form S-8 filed on February 20, 2015, subject to shareholder approval. 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 under the Company’s 2015 Plan for 2015 and under the Company’s 2005 Incentive Award Plan for 2014 and 2013 as follows: | ||||||||
Grant Year | |||||||||
2015 | 2014 | 2013 | |||||||
Three-year performance period ending December 31, | 2017 | 2016 | 2015 | ||||||
Vesting shares, target (net of forfeited) | 95,250 | 85,500 | 79,500 | ||||||
Vesting shares, maximum (net of forfeited) | 178,594 | 160,313 | 178,875 | ||||||
Acquisition_Tables
Acquisition (Tables) | 3 Months Ended | |||
Mar. 31, 2015 | ||||
Business Combinations [Abstract] | ||||
Summary of Purchase Price and Purchase Price Allocation | The following table summarizes the consideration paid for WAIC and the preliminary allocation of the purchase price. | |||
2-Jan-15 | ||||
(Amounts in thousands) | ||||
Consideration | ||||
Cash | $ | 8,000 | ||
Less: Amount held in escrow | 2,000 | |||
Fair value of total consideration transferred | $ | 6,000 | ||
Acquisition-related costs | $ | 231 | ||
Recognized amounts of identifiable assets acquired and liabilities assumed | ||||
Total assets | $ | 31,078 | ||
Total liabilities | (26,478 | ) | ||
Total identifiable net assets | 4,600 | |||
Intangible asset - state insurance license | 1,400 | |||
Total | $ | 6,000 | ||
Schedule of Pro Forma Information | Pursuant to an October 22, 2014 Stock Purchase Agreement, the Company purchased all the issued and outstanding shares of WAIC, a California domiciled property and casualty insurance company, on January 2, 2015. The Company paid $8 million in cash for the shares of WAIC, of which $2 million has been withheld in escrow for up to three years as security for any loss development on claims incurred on or prior to June 30, 2014. Based on its most recent evaluation of the claims reserves for WAIC for loss incurred on or prior to June 30, 2014, the Company estimates that it will recover the $2 million held in escrow and, therefore, the Company has deducted it from cash consideration to arrive at the fair value of total consideration transferred. In accordance with requirements to obtain regulatory approval, the Company made a $15 million cash capital contribution to WAIC on January 12, 2015. | |||
The total cost of the acquisition has been allocated to the assets acquired and the liabilities assumed based upon estimates of their fair values at the acquisition date. The following table summarizes the consideration paid for WAIC and the preliminary allocation of the purchase price. | ||||
2-Jan-15 | ||||
(Amounts in thousands) | ||||
Consideration | ||||
Cash | $ | 8,000 | ||
Less: Amount held in escrow | 2,000 | |||
Fair value of total consideration transferred | $ | 6,000 | ||
Acquisition-related costs | $ | 231 | ||
Recognized amounts of identifiable assets acquired and liabilities assumed | ||||
Total assets | $ | 31,078 | ||
Total liabilities | (26,478 | ) | ||
Total identifiable net assets | 4,600 | |||
Intangible asset - state insurance license | 1,400 | |||
Total | $ | 6,000 | ||
The intangible asset has an indefinite life. See Note 7 for further discussion. | ||||
The fair value of the total assets acquired includes cash, investments, receivables, deferred taxes, other assets, and fixed assets. The fair value of the total liabilities assumed includes loss and loss adjustment expenses, unearned premiums, accounts payable, and other accrued liabilities. | ||||
The following table reflects the amount of revenue and net income of WAIC included in the Company's consolidated statement of operations for the three-month period ended March 31, 2015. | ||||
Three Months ended March 31, 2015 | ||||
(Amounts in thousands) | ||||
WAIC | ||||
Revenue (1) | $ | 6,863 | ||
Net loss | (2,014 | ) | ||
____________ | ||||
1 | Includes net premiums earned, net investment income, and net realized investment gains/losses. |
General_Details
General (Details) (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Potentially dilutive securities (in shares) | 2,000 | 48,000 |
Deferred policy acquisition cost amortization | $133,847 | $129,814 |
Advertising expenses | $15,955 | $6,381 |
Fair_Value_of_Financial_Instru2
Fair Value of Financial Instruments (Narrative) (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Unsecured Debt | $150,000 | $150,000 |
Level 2 [Member] | Secured Notes One [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Secured notes | 120,000 | |
Level 2 [Member] | Secured Notes Two [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Secured notes | $20,000 |
Fair_Value_of_Financial_Instru3
Fair Value of Financial Instruments (Estimated Fair Values Of Financial Instruments) (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Liabilities | ||
Total return swap | $1,412 | $4,025 |
Unsecured Debt | 150,000 | 150,000 |
Investments [Member] | ||
Assets | ||
Investments | 3,443,363 | 3,403,822 |
Secured Notes [Member] | ||
Liabilities | ||
Secured notes payable | 140,000 | 140,000 |
Equity Contract [Member] | ||
Liabilities | ||
Equity contracts | $888 | $194 |
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 | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
(Losses) gains due to changes in fair value of investments | ($4,884) | $45,699 |
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 | 1,251 | 36,598 |
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 | -6,337 | 9,112 |
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 | $202 | ($11) |
Fair_Value_Measurement_Narrati
Fair Value Measurement (Narrative) (Details) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
transfers | transfers | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Percentage of portfolio of unadjusted fair values obtained | 99.60% | ||
Percentage of portfolio of specific unadjusted broker quotes obtained | 0.40% | ||
Transfers between Levels 1, 2, and 3 of the fair value hierarchy | 0 | 0 | |
Commercial Mortgage Backed Securities [Member] | Level 2 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Trading securities, fair value disclosure | 46.1 | $32.50 | |
Minimum [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Number of knowledgeable outside security brokers consulted to determine fair value | 1 |
Fair_Value_Measurement_Schedul
Fair Value Measurement (Schedule Of Assets And Liabilities Measured At Fair Value On A Recurring Basis Valuation Techniques) (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets | $3,443,363 | $3,403,822 |
Liabilities | 2,300 | 4,219 |
Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets | 514,217 | 742,886 |
Liabilities | 888 | 194 |
Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets | 2,913,714 | 2,649,217 |
Liabilities | 1,412 | 4,025 |
Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets | 15,432 | 11,719 |
Liabilities | 0 | 0 |
Short-term bonds [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets | 84,740 | 88,361 |
Short-term bonds [Member] | Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets | 69,990 | 69,999 |
Short-term bonds [Member] | Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets | 14,750 | 18,362 |
Short-term bonds [Member] | Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets | 0 | 0 |
Money market instruments [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets | 88,864 | 284,181 |
Money market instruments [Member] | Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets | 88,864 | 284,181 |
Money market instruments [Member] | Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets | 0 | 0 |
Money market instruments [Member] | Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets | 0 | 0 |
Equity contracts [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Liabilities | 1,412 | 194 |
Equity contracts [Member] | Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Liabilities | 0 | 194 |
Equity contracts [Member] | Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Liabilities | 1,412 | 0 |
Equity contracts [Member] | Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Liabilities | 0 | 0 |
Total Return Swap [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Liabilities | 888 | 4,025 |
Total Return Swap [Member] | Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Liabilities | 888 | 0 |
Total Return Swap [Member] | Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Liabilities | 0 | 4,025 |
Total Return Swap [Member] | Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Liabilities | 0 | 0 |
Fixed maturity securities [Member] | U.S. government bonds and agencies [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets | 18,226 | 16,108 |
Fixed maturity securities [Member] | U.S. government bonds and agencies [Member] | Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets | 18,226 | 16,108 |
Fixed maturity securities [Member] | U.S. government bonds and agencies [Member] | Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets | 0 | 0 |
Fixed maturity securities [Member] | U.S. government bonds and agencies [Member] | Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets | 0 | 0 |
Fixed maturity securities [Member] | Municipal securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets | 2,479,879 | 2,275,455 |
Fixed maturity securities [Member] | Municipal securities [Member] | Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets | 0 | 0 |
Fixed maturity securities [Member] | Municipal securities [Member] | Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets | 2,479,879 | 2,275,455 |
Fixed maturity securities [Member] | Municipal securities [Member] | Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets | 0 | 0 |
Fixed maturity securities [Member] | Mortgage-backed securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets | 60,754 | 47,691 |
Fixed maturity securities [Member] | Mortgage-backed securities [Member] | Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets | 0 | 0 |
Fixed maturity securities [Member] | Mortgage-backed securities [Member] | Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets | 60,754 | 47,691 |
Fixed maturity securities [Member] | Mortgage-backed securities [Member] | Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets | 0 | 0 |
Fixed maturity securities [Member] | Corporate securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets | 279,964 | 256,930 |
Fixed maturity securities [Member] | Corporate securities [Member] | Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets | 0 | 0 |
Fixed maturity securities [Member] | Corporate securities [Member] | Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets | 279,964 | 256,930 |
Fixed maturity securities [Member] | Corporate securities [Member] | Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets | 0 | 0 |
Fixed maturity securities [Member] | Collateralized Debt Obligations [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets | 50,120 | 22,216 |
Fixed maturity securities [Member] | Collateralized Debt Obligations [Member] | Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets | 0 | 0 |
Fixed maturity securities [Member] | Collateralized Debt Obligations [Member] | Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets | 50,120 | 22,216 |
Fixed maturity securities [Member] | Collateralized Debt Obligations [Member] | Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets | 0 | 0 |
Equity securities [Member] | Public utilities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets | 92,722 | 105,485 |
Equity securities [Member] | Public utilities [Member] | Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets | 92,722 | 105,485 |
Equity securities [Member] | Public utilities [Member] | Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets | 0 | 0 |
Equity securities [Member] | Public utilities [Member] | Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets | 0 | 0 |
Equity securities [Member] | Banks, trusts and insurance companies [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets | 12,919 | 9,757 |
Equity securities [Member] | Banks, trusts and insurance companies [Member] | Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets | 12,919 | 9,757 |
Equity securities [Member] | Banks, trusts and insurance companies [Member] | Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets | 0 | 0 |
Equity securities [Member] | Banks, trusts and insurance companies [Member] | Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets | 0 | 0 |
Equity securities [Member] | Energy and other [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets | 231,496 | 257,356 |
Equity securities [Member] | Energy and other [Member] | Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets | 231,496 | 257,356 |
Equity securities [Member] | Energy and other [Member] | Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets | 0 | 0 |
Equity securities [Member] | Energy and other [Member] | Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets | 0 | 0 |
Equity securities [Member] | Non-redeemable preferred stock [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets | 28,247 | 28,563 |
Equity securities [Member] | Non-redeemable preferred stock [Member] | Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets | 0 | 0 |
Equity securities [Member] | Non-redeemable preferred stock [Member] | Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets | 28,247 | 28,563 |
Equity securities [Member] | Non-redeemable preferred stock [Member] | Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets | 0 | 0 |
Equity securities [Member] | Partnership Interest In Private Credit Fund [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets | 15,432 | 11,719 |
Equity securities [Member] | Partnership Interest In Private Credit Fund [Member] | Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets | 0 | 0 |
Equity securities [Member] | Partnership Interest In Private Credit Fund [Member] | Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets | 0 | 0 |
Equity securities [Member] | Partnership Interest In Private Credit Fund [Member] | Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets | $15,432 | $11,719 |
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 | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Collateralized Debt Obligations [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | $4,302 | |
Realized (losses) gains included in earnings | -755 | |
Reclassification from other assets | 0 | |
Sales | -3,547 | |
Ending Balance | 0 | |
The amount of total (losses) gains for the period included in earnings attributable to assets still held at March 31 | 0 | |
Partnership Interest In Private Credit Fund [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | 11,719 | 12,548 |
Realized (losses) gains included in earnings | 802 | 178 |
Reclassification from other assets | 2,911 | 0 |
Sales | 0 | 0 |
Ending Balance | 15,432 | 12,726 |
The amount of total (losses) gains for the period included in earnings attributable to assets still held at March 31 | $802 | $178 |
Derivative_Financial_Instrumen2
Derivative Financial Instruments (Narrative) (Details) (USD $) | 0 Months Ended | |
In Thousands, unless otherwise specified | Aug. 09, 2013 | Mar. 31, 2015 |
2014 Swap [Member] | ||
Derivative Financial Instruments [Line Items] | ||
Notional amount | $107,234 | |
Swap agreement collateral | 29,989 | |
2013 Swap [Member] | ||
Derivative Financial Instruments [Line Items] | ||
Notional amount | 154,454 | |
Swap agreement collateral | $39,999 | |
Term of swap agreement | 3 years | |
LIBOR [Member] | 2014 Swap [Member] | ||
Derivative Financial Instruments [Line Items] | ||
Basis spread on variable rate | 1.35% | |
LIBOR [Member] | 2013 Swap [Member] | ||
Derivative Financial Instruments [Line Items] | ||
Basis spread on variable rate | 1.20% |
Derivative_Financial_Instrumen3
Derivative Financial Instruments (Summary Of Location And Amounts Of Derivative Fair Values In The Consolidated Balance Sheets) (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Derivative [Line Items] | ||
Liability Derivatives | ($1,412) | ($4,025) |
Non-hedging derivatives [Member] | ||
Derivative [Line Items] | ||
Liability Derivatives | -2,300 | -4,219 |
Non-hedging derivatives [Member] | Interest rate swap agreements [Member] | Other Assets [Member] | ||
Derivative [Line Items] | ||
Liability Derivatives | -1,412 | -4,025 |
Non-hedging derivatives [Member] | Equity contracts [Member] | Other liabilities [Member] | ||
Derivative [Line Items] | ||
Liability Derivatives | ($888) | ($194) |
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 | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Derivative [Line Items] | ||
Gain Recognized in Income (Loss) | $3,435 | $1,430 |
Total Return Swap [Member] | Other revenue [Member] | ||
Derivative [Line Items] | ||
Gain Recognized in Income (Loss) | 2,988 | 875 |
Equity contracts [Member] | Net realized investment (losses) gains [Member] | ||
Derivative [Line Items] | ||
Gain Recognized in Income (Loss) | $447 | $555 |
Goodwill_and_Other_Intangible_2
Goodwill and Other Intangible Assets (Narrative) (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Intangible assets amortization expense | $1.50 | $1.50 |
Goodwill_and_Other_Intangible_3
Goodwill and Other Intangible Assets (Schedule Of Components Of Other Intangible Assets) (Details) (USD $) | 3 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $72,855 | $71,455 |
Accumulated Amortization | -37,327 | -35,832 |
Total | 35,528 | 35,623 |
Customer relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 51,755 | 51,755 |
Accumulated Amortization | -30,629 | -29,402 |
Total | 21,126 | 22,353 |
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 | -4,010 | -3,850 |
Total | 11,390 | 11,550 |
Useful Lives (in years) | 24 years | 24 years |
Technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 4,300 | 4,300 |
Accumulated Amortization | -2,688 | -2,580 |
Total | $1,612 | $1,720 |
Useful Lives (in years) | 10 years | 10 years |
Goodwill_and_Other_Intangible_4
Goodwill and Other Intangible Assets - Acquired Intangible Assets (Details) (USD $) | 3 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
Indefinite-lived Intangible Assets [Line Items] | |||
Intangible assets amortization expense | $1,500,000 | $1,500,000 | |
Gross Carrying Amount | 72,855,000 | 71,455,000 | |
Other intangible assets, net | 35,528,000 | 35,623,000 | |
Licensing Agreements [Member] | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 1,400,000 | ||
Other intangible assets, net | $1,400,000 |
Goodwill_and_Other_Intangible_5
Goodwill and Other Intangible Assets (Schedule Of Estimated Future Amortization Expense Related To Intangible Assets) (Details) (USD $) | Mar. 31, 2015 |
In Thousands, unless otherwise specified | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Remainder of 2015 | $4,485 |
2016 | 5,980 |
2017 | 5,253 |
2018 | 5,239 |
2019 | 4,809 |
Thereafter | 8,362 |
Total | $34,128 |
ShareBased_Compensation_Narrat
Share-Based Compensation (Narrative) (Details) | 3 Months Ended |
Mar. 31, 2015 | |
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 |
Target Restricted Stock Units, 2015 Grants [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested Options Forfeited, Number of Shares | 1,000 |
Target Restricted Stock Units, 2014 Grants [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested Options Forfeited, Number of Shares | 8,000 |
Target Restricted Stock Units, 2013 Grants [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested Options Forfeited, Number of Shares | 5,000 |
ShareBased_Compensation_Schedu
Share-Based Compensation (Schedule Of Performance Vesting Restricted Stock Units Granted) (Details) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation, Allocation and Classification in Financial Statements [Abstract] | |||
Three-year performance period ending December 31, | 2017 | 2016 | 2015 |
Vesting shares, target | 95,250 | 85,500 | 79,500 |
Vesting shares, maximum | 178,594 | 160,313 | 178,875 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2015 |
Components of Income Tax Expense (Benefit), Continuing Operations [Abstract] | |
Increase in unrecognized tax benefit | $0.10 |
Acquisition_Summary_of_Acquisi
Acquisition - Summary of Acquisition (Details) (Workmen's Auto Insurance Company [Member], USD $) | 0 Months Ended | 3 Months Ended | |||
In Thousands, unless otherwise specified | Jan. 02, 2015 | Jan. 01, 2015 | Mar. 31, 2015 | Jan. 02, 2015 | Jan. 01, 2015 |
Business Combination, Consideration Transferred, Including Equity Interest in Acquiree Held Prior to Combination [Abstract] | |||||
Cash | $8,000 | ||||
Less: Amount held in escrow | 2,000 | 2,000 | |||
Fair value of total consideration transferred | 8,000 | 6,000 | |||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Less Noncontrolling Interest [Abstract] | |||||
Acquisition-related costs | 231 | 231 | |||
Total assets | 31,078 | 31,078 | |||
Total liabilities | -26,478 | -26,478 | |||
Total identifiable net assets | 4,600 | 4,600 | |||
Total | 6,000 | 6,000 | |||
Business Acquisition, Pro Forma Information [Abstract] | |||||
Revenue | 6,863 | ||||
Net loss | -2,014 | ||||
Intangible Assets Arising from Insurance Contracts Acquired in Business Combination [Member] | |||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Less Noncontrolling Interest [Abstract] | |||||
Intangible asset - state insurance license | $1,400 | $1,400 |
Acquisition_Narrative_Details
Acquisition - Narrative (Details) (Workmen's Auto Insurance Company [Member], USD $) | 0 Months Ended | ||
Jan. 12, 2015 | Jan. 02, 2015 | Jan. 01, 2015 | |
Workmen's Auto Insurance Company [Member] | |||
Business Acquisition [Line Items] | |||
Fair value of total consideration transferred | $8,000,000 | $6,000,000 | |
Less: Amount held in escrow | 2,000,000 | 2,000,000 | |
Maximum duration for escrow security | 3 years | ||
Capital contribution to WAIC | $15,000,000 |