Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Feb. 03, 2017 | Jun. 30, 2016 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | MERCURY GENERAL CORP | ||
Entity Central Index Key | 64,996 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 55,289,077 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 1,444,361,346 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Investments, at fair value: | ||
Fixed maturity securities (amortized cost $2,795,410; $2,804,275) | $ 2,814,553 | $ 2,880,003 |
Equity securities (cost $331,770; $313,528) | 357,327 | 315,362 |
Short-term investments (cost $375,700; $185,353) | 375,680 | 185,277 |
Total investments | 3,547,560 | 3,380,642 |
Cash | 220,318 | 264,221 |
Receivables: | ||
Premiums | 459,152 | 436,621 |
Accrued investment income | 41,205 | 42,747 |
Other | 24,635 | 21,925 |
Total receivables | 524,992 | 501,293 |
Deferred policy acquisition costs | 200,826 | 201,762 |
Fixed assets, net | 155,910 | 157,131 |
Current income taxes | 0 | 9,041 |
Deferred income taxes | 45,277 | 23,231 |
Goodwill | 42,796 | 42,796 |
Other intangible assets, net | 25,625 | 31,702 |
Other assets | 25,414 | 16,826 |
Total assets | 4,788,718 | 4,628,645 |
Liabilities | ||
Loss and loss adjustment expense reserves | 1,290,248 | 1,146,688 |
Unearned premiums | 1,074,437 | 1,049,314 |
Notes payable | 320,000 | 290,000 |
Accounts payable and accrued expenses | 112,334 | 122,571 |
Current income taxes | 9,962 | 0 |
Other liabilities | 229,335 | 199,187 |
Total liabilities | 3,036,316 | 2,807,760 |
Commitments and contingencies | ||
Shareholders’ equity: | ||
Common stock without par value or stated value: Authorized 70,000 shares; issued and outstanding 55,289; 55,164 | 95,529 | 90,985 |
Additional paid-in capital | 0 | 8,870 |
Retained earnings | 1,656,873 | 1,721,030 |
Total shareholders’ equity | 1,752,402 | 1,820,885 |
Total liabilities and shareholders’ equity | $ 4,788,718 | $ 4,628,645 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Amortized cost on fixed maturities trading investments | $ 2,795,410 | $ 2,804,275 |
Cost - equity security trading investments | 331,770 | 313,528 |
Cost - short-term investments | $ 375,700 | $ 185,353 |
Common Stock | ||
Common stock, no par value (in dollars per share) | $ 0 | $ 0 |
Common stock, shares authorized (in shares) | 70,000,000 | 70,000,000 |
Common stock, shares issued (in shares) | 55,289,000 | 55,164,000 |
Common stock, shares outstanding (in shares) | 55,289,000 | 55,164,000 |
Consolidated Statements Of Oper
Consolidated Statements Of Operations - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Revenues: | |||
Net premiums earned | $ 3,131,773 | $ 2,957,897 | $ 2,796,195 |
Net investment income | 121,871 | 126,299 | 125,723 |
Net realized investment (losses) gains | (34,255) | (83,807) | 81,184 |
Other | 8,294 | 8,911 | 8,671 |
Total revenues | 3,227,683 | 3,009,300 | 3,011,773 |
Expenses: | |||
Losses and loss adjustment expenses | 2,355,138 | 2,145,495 | 1,986,122 |
Policy acquisition costs | 562,545 | 539,231 | 526,208 |
Other operating expenses | 235,314 | 250,839 | 249,381 |
Interest | 3,962 | 3,168 | 2,637 |
Total expenses | 3,156,959 | 2,938,733 | 2,764,348 |
Income before income taxes | 70,724 | 70,567 | 247,425 |
Income tax (benefit) expense | (2,320) | (3,912) | 69,476 |
Net income | $ 73,044 | $ 74,479 | $ 177,949 |
Net income per share: | |||
Basic (in dollars per share) | $ 1.32 | $ 1.35 | $ 3.23 |
Diluted (in dollars per share) | $ 1.32 | $ 1.35 | $ 3.23 |
Consolidated Statements Of Shar
Consolidated Statements Of Shareholders' Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] |
Beginning of year at Dec. 31, 2013 | $ 81,591 | $ 411 | $ 1,740,484 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Exercise of stock options | 6,824 | 577 | ||
Share-based compensation expense | 142 | 3,970 | ||
Payment for vested restricted stock units and related taxes | 0 | 0 | ||
Reclassification of restricted stock units from equity to liability award | 0 | |||
Excess tax benefits related to share-based compensation | $ 148 | 148 | ||
Net income | 177,949 | 177,949 | ||
Dividends paid to shareholders | (135,496) | |||
End of year at Dec. 31, 2014 | 1,875,446 | 88,705 | 3,804 | 1,782,937 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Exercise of stock options | 2,111 | 0 | ||
Share-based compensation expense | 142 | 5,066 | ||
Payment for vested restricted stock units and related taxes | 0 | 0 | ||
Reclassification of restricted stock units from equity to liability award | 0 | |||
Excess tax benefits related to share-based compensation | 27 | 27 | ||
Net income | 74,479 | 74,479 | ||
Dividends paid to shareholders | (136,386) | |||
End of year at Dec. 31, 2015 | 1,820,885 | 90,985 | 8,870 | 1,721,030 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Exercise of stock options | 1,818 | 313 | ||
Share-based compensation expense | 142 | 0 | ||
Payment for vested restricted stock units and related taxes | 1,671 | (5,122) | ||
Reclassification of restricted stock units from equity to liability award | (3,435) | |||
Excess tax benefits related to share-based compensation | 913 | 913 | ||
Net income | 73,044 | 73,044 | ||
Dividends paid to shareholders | (137,201) | |||
End of year at Dec. 31, 2016 | $ 1,752,402 | $ 95,529 | $ 0 | $ 1,656,873 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net income | $ 73,044 | $ 74,479 | $ 177,949 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 26,385 | 26,478 | 28,054 |
Net realized investment losses (gains) | 34,255 | 83,807 | (81,184) |
Bond amortization, net | 26,873 | 21,360 | 18,918 |
Excess tax benefits related to share-based compensation | (913) | (27) | (148) |
Increase in premiums receivable | (22,531) | (41,512) | (23,934) |
Changes in current and deferred income taxes | (2,130) | (35,287) | 8,343 |
Decrease (increase) in deferred policy acquisition costs | 936 | (4,560) | (2,736) |
Increase in unpaid losses and loss adjustment expenses | 143,560 | 36,214 | 52,813 |
Increase in unearned premiums | 25,124 | 42,552 | 46,271 |
(Decrease) increase in accounts payable and accrued expenses | (10,586) | (35,086) | 31,019 |
Share-based compensation | 142 | 5,208 | 4,112 |
(Decrease) increase in other payables | (2,627) | 18,114 | (10,988) |
Other, net | (4,059) | (1,496) | (1,954) |
Net cash provided by operating activities | 287,473 | 190,244 | 246,535 |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Fixed maturity securities available-for-sale in nature: Purchases | (1,077,638) | (965,701) | (542,494) |
Fixed maturity securities available-for-sale in nature: Sales | 396,766 | 260,946 | 209,680 |
Fixed maturity securities available-for-sale in nature: Calls or maturities | 647,059 | 386,644 | 330,637 |
Equity securities available for sale in nature: | |||
Purchases | (714,113) | (748,217) | (868,383) |
Sales | 696,138 | 805,417 | 745,058 |
Calls | 0 | 2,851 | 1,044 |
Changes in securities payable and receivable | 29,958 | (1,387) | 9,294 |
Net (increase) decrease in short-term investments and purchased options | (191,530) | 187,492 | (56,530) |
Purchase of fixed assets | (16,979) | (20,112) | (26,037) |
Sale of fixed assets | 14 | 141 | 224 |
Business acquisition, net of cash acquired | 0 | 7,771 | 0 |
Other, net | 3,605 | 2,473 | 3,472 |
Net cash used in investing activities | (226,720) | (81,682) | (194,035) |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Dividends paid to shareholders | (137,201) | (136,386) | (135,496) |
Excess tax benefits related to share-based compensation | 913 | 27 | 148 |
Proceeds from stock options exercised | 1,632 | 2,111 | 6,247 |
Proceeds from bank loan | 30,000 | 0 | 100,000 |
Net cash used in financing activities | (104,656) | (134,248) | (29,101) |
Net (decrease) increase in cash | (43,903) | (25,686) | 23,399 |
Cash: | |||
Beginning of year | 264,221 | 289,907 | 266,508 |
End of year | 220,318 | 264,221 | 289,907 |
SUPPLEMENTAL CASH FLOW DISCLOSURE | |||
Interest paid | 3,531 | 2,989 | 2,543 |
Income taxes (refunded) | $ (183) | ||
Income taxes paid | $ 31,390 | $ 61,139 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies General Mercury General Corporation ("Mercury General") and its subsidiaries (referred to herein collectively as the "Company") are primarily engaged in writing personal automobile insurance through 14 Insurance Companies in 11 states, principally California. The Company also writes homeowners, commercial automobile, commercial property, mechanical breakdown, fire, and umbrella insurance. The private passenger automobile line of insurance business was more than 77% of the Company’s direct premiums written in 2016 , 2015 , and 2014 , of which approximately 84% , 83% , and 83% of the private passenger automobile premiums were written in California during 2016 , 2015 , and 2014 , respectively. Premiums written represents the premiums charged on policies issued during a fiscal period, which is a statutory measure designed to determine production levels. Consolidation and Basis of Presentation The consolidated financial statements include the accounts of Mercury General Corporation and its subsidiaries: Insurance Companies Mercury Casualty Company ("MCC") Mercury National Insurance Company Mercury Insurance Company ("MIC") American Mercury Insurance Company California Automobile Insurance Company ("CAIC") American Mercury Lloyds Insurance Company (1) California General Underwriters Insurance Company, Inc. Mercury County Mutual Insurance Company (2) Mercury Insurance Company of Illinois Mercury Insurance Company of Florida Mercury Insurance Company of Georgia Mercury Indemnity Company of America Mercury Indemnity Company of Georgia Workmen's Auto Insurance Company ("WAIC") (4) Non-Insurance Companies Mercury Select Management Company, Inc. AIS Management LLC Mercury Insurance Services LLC Auto Insurance Specialists LLC Animas Funding LLC ("AFL") (3) PoliSeek AIS Insurance Solutions, Inc. Fannette Funding LLC ("FFL") (3) __________ (1) American Mercury Lloyds Insurance Company is not owned but is controlled by the Company through its attorney-in-fact, Mercury Select Management Company, Inc. (2) Mercury County Mutual Insurance Company is not owned but is controlled by the Company through a management contract. (3) Special purpose investment vehicle. (4) California domiciled insurance company acquired in 2015. See Note 20. Acquisition. The 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. Certain prior period amounts have been reclassified to conform with the current period presentation. The Company did not have other comprehensive income (loss) in 2016 , 2015 and 2014 . 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 revenue 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 consolidated financial statements relate to reserves for losses and loss adjustment expenses. Actual results could differ from those estimates. 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 primary reasons for electing the fair value option were simplification and cost benefit considerations as well as the expansion of the use of fair value measurement by the Company consistent with the long-term measurement objectives of the Financial Accounting Standards Board (the "FASB") for accounting for financial instruments. See Note 2. Fair Value of Financial Instruments for additional information on the 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. Fixed maturity securities include debt securities, which may have fixed or variable principal payment schedules, may be held for indefinite periods of time, and may be used as a part of the Company’s asset/liability strategy or sold in response to changes in interest rates, anticipated prepayments, risk/reward characteristics, liquidity needs, tax planning considerations, or other economic factors. Premiums and discounts on fixed maturities are amortized using first call date and are adjusted for anticipated prepayments. Premiums and discounts on mortgage-backed securities are adjusted for anticipated prepayment using the retrospective method, with the exception of some beneficial interests in securitized financial assets, which are accounted for using the prospective method. Equity securities consist of non-redeemable preferred stocks, common stocks on which dividend income is partially tax-sheltered by the 70% corporate dividend received deduction, and an interest in private equity funds. Short-term investments include money market accounts, options, and short-term bonds that are highly rated short duration securities and redeemable within one year. Securities on Deposit As required by statute, the Company’s insurance subsidiaries have securities deposited with the departments of insurance or similar governmental agencies in the states in which they are licensed to operate with fair values totaling $19 million and $21 million at December 31, 2016 and 2015 , respectively. 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 $562.5 million , $539.2 million , and $526.2 million during the years ended December 31, 2016 , 2015 , and 2014 , respectively. The Company does not defer advertising expenditures but expenses them as incurred. The Company recorded net advertising expense of approximately $40 million , $44 million , and $23 million during the years ended December 31, 2016 , 2015 , and 2014 , respectively. Fixed Assets Fixed assets are stated at historical cost less accumulated depreciation and amortization. The useful life for buildings is 30 to 40 years . Furniture, equipment, and purchased software are depreciated on a combination of straight-line and accelerated methods over 3 to 7 years . The Company has capitalized certain consulting costs, payroll, and payroll-related costs for employees related to computer software developed for internal use, which are amortized on a straight-line method over the estimated useful life of the software, generally not exceeding 7 years . In accordance with applicable accounting standards, capitalization ceases no later than the point at which a computer software project is substantially complete and ready for its intended use. Leasehold improvements are amortized over the shorter of the useful life of the assets or the life of the associated lease. The Company periodically assesses long-lived assets or asset groups including building and equipment, for recoverability when events or changes in circumstances indicate that their carrying amounts may not be recoverable. If the Company identifies an indicator of impairment, the Company assesses recoverability by comparing the carrying amount of the asset to the sum of the undiscounted cash flows expected to result from the use and the eventual disposal of the asset. An impairment loss is recognized when the carrying amount is not recoverable and is measured as the excess of carrying value over fair value. There were no impairment charges during 2016 , 2015 , and 2014 . Goodwill and Other Intangible Assets Goodwill and other intangible assets arise as a result of business acquisitions and consist of the excess of the cost of the acquisitions over the tangible and intangible assets acquired and liabilities assumed and identifiable intangible assets acquired. Identifiable intangible assets consist of the value of customer relationships, trade names, software and technology, and favorable leases, which are all subject to amortization, and an insurance license which is not subject to amortization. The Company evaluates goodwill and other intangible assets for impairment annually or whenever events or changes in circumstances indicate that it is more likely than not that the carrying amount of goodwill and other intangible assets may exceed their implied fair values. The Company qualitatively determines whether, more likely than not, the fair value exceeds the carrying amount of a reporting unit. There are numerous assumptions and estimates underlying the qualitative assessments including future earnings, long-term strategies, and the Company’s annual planning and forecasting process. If these planned initiatives do not accomplish the targeted objectives, the assumptions and estimates underlying the qualitative assessments could be adversely affected and have a material effect upon the Company’s financial condition and results of operations. In addition, the Company evaluates other intangible assets using methods similar to those used for goodwill described above. As of December 31, 2016 and 2015 , goodwill and other intangible impairment assessments indicated that there was no impairment. Premium Revenue Recognition Premium revenue is recognized on a pro-rata basis over the terms of the policies in proportion to the amount of insurance protection provided. Premium revenue includes installment and other fees for services which are recognized in the periods in which the services are rendered. Unearned premiums represent the portion of the written premium related to the unexpired policy term. Unearned premiums are predominantly computed monthly on a pro-rata basis and are stated gross of reinsurance deductions, with the reinsurance deduction recorded in other receivables. Net premiums written, a statutory measure designed to determine production levels, were $3.16 billion , $3.00 billion , and $2.84 billion in 2016 , 2015 , and 2014 , respectively. Losses and Loss Adjustment Expenses Unpaid losses and loss adjustment expenses are determined in amounts estimated to cover incurred losses and loss adjustment expenses and established based upon the Company’s assessment of claims pending and the development of prior years’ loss liabilities. These amounts include liabilities based upon individual case estimates for reported losses and loss adjustment expenses and estimates of such amounts that are incurred but not reported. Changes in the estimated liability are charged or credited to operations as the losses and loss adjustment expenses are re-estimated. The liability is stated net of anticipated salvage and subrogation recoveries. The amount of reinsurance recoverable is included in other receivables. Estimating loss reserves is a difficult process as many factors can ultimately affect the final settlement of a claim and, therefore, the loss reserve that is required. A key assumption in estimating loss reserves is the degree to which the historical data used to analyze reserves will be predictive of ultimate claim costs on incurred claims. Changes in the regulatory and legal environments, results of litigation, medical costs, the cost of repair materials, and labor rates, among other factors, can impact this assumption. In addition, time can be a critical part of reserving determinations since the longer the span between the incidence of a loss and the payment or settlement of a claim, the more variable the ultimate settlement amount could be. Accordingly, short-tail claims, such as property damage claims, tend to be more reasonably predictable than long-tail liability claims, such as those involving the Company’s bodily injury (BI) coverages. Management believes that the liability for losses and loss adjustment expenses is adequate to cover the ultimate net cost of losses and loss adjustment expenses incurred to date. However, since the provisions for loss reserves are necessarily based upon estimates, the ultimate liability may be more or less than such provisions. The Company analyzes loss reserves quarterly primarily using the incurred loss, paid loss, average severity coupled with the claim count development methods, and the generalized linear model ("GLM") described below. When deciding among methods to use, the Company evaluates the credibility of each method based on the maturity of the data available and the claims settlement practices for each particular line of insurance business or coverage within a line of insurance business. The Company may also evaluate qualitative factors such as known changes in laws or legal ruling that could affect claims handling or other external environmental factors or internal factors that could affect the settlement of claims. When establishing the loss reserve, the Company will generally analyze the results from all of the methods used rather than relying on a single method. While these methods are designed to determine the ultimate losses on claims under the Company’s policies, there is inherent uncertainty in all actuarial models since they use historical data to project outcomes. The Company believes that the techniques it uses provide a reasonable basis in estimating loss reserves. • The incurred loss method analyzes historical incurred case loss (case reserves plus paid losses) development to estimate ultimate losses. The Company applies development factors against current case incurred losses by accident period to calculate ultimate expected losses. The Company believes that the incurred loss method provides a reasonable basis for evaluating ultimate losses, particularly in the Company’s larger, more established lines of insurance business which have a long operating history. • The paid loss method analyzes historical payment patterns to estimate the amount of losses yet to be paid. • The average severity method analyzes historical loss payments and/or incurred losses divided by closed claims and/or total claims to calculate an estimated average cost per claim. From this, the expected ultimate average cost per claim can be estimated. The average severity method coupled with the claim count development method provides meaningful information regarding inflation and frequency trends that the Company believes is useful in establishing loss reserves. The claim count development method analyzes historical claim count development to estimate future incurred claim count development for current claims. The Company applies these development factors against current claim counts by accident period to calculate ultimate expected claim counts. • The GLM determines an average severity for each percentile of claims that have been closed as a percentage of estimated ultimate claims. The average severities are applied to open claims to estimate the amount of losses yet to be paid. The GLM utilizes operational time, determined as a percentile of claims closed rather than a finite calendar period, which neutralizes the effect of changes in the timing of claims handling. The Company analyzes catastrophe losses separately from non-catastrophe losses. For catastrophe losses, the Company generally determines claim counts based on claims reported and development expectations from previous catastrophes and applies an average expected loss per claim based on loss reserves established by adjusters and average losses on previous similar catastrophes. Derivative Financial Instruments The Company accounts for all derivative instruments, other than those that meet the normal purchases and sales exception, as either an asset or liability, measured at fair value, which is based on information obtained from independent parties. In addition, changes in fair value are recognized in earnings unless specific hedge accounting criteria are met. The Company’s derivative instruments include total return swaps and options sold. See Note 8. Derivative Financial Instruments. Earnings Per Share Basic earnings per share excludes dilution and reflects net income divided by the weighted average shares of common stock outstanding during the periods presented. Diluted earnings per share is based on the weighted average shares of common stock and potential dilutive securities outstanding during the periods presented. At December 31, 2016 and 2015 , potential dilutive securities consisted of outstanding stock options and restricted stock units ("RSUs") granted from the Company's 2014 Long Term Incentive Plan. See Note 16. Earnings Per Share , for the required disclosures relating to the calculation of basic and diluted earnings per share. Income Taxes 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. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates or laws is recognized in earnings in the period that includes the enactment date. At December 31, 2016 , 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. Reinsurance Liabilities for unearned premiums and unpaid losses are stated in the accompanying consolidated financial statements before deductions for ceded reinsurance. The ceded amounts are immaterial and are carried in other receivables. Earned premiums are stated net of deductions for ceded reinsurance. The Insurance Companies, as primary insurers, are required to pay losses to the extent reinsurers are unable to discharge their obligations under the reinsurance agreements. Share-Based Compensation Share-based compensation expense for all stock options 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 fair value of each restricted stock unit grant was determined based on the market price on the grant date for awards classified as equity and on each reporting date for awards classified as a liability. Compensation cost is recognized based on management’s best estimate of the performance goals that will be achieved. If such goals are not met, no compensation cost is recognized and any recognized compensation cost would be reversed. See Note 15. Share-Based Compensation for additional disclosures. Recently Issued Accounting Standards In October 2016, the FASB issued Accounting Standards Update ("ASU") 2016-16, " Income Taxes (Topic 740), Intra-Entity Transfers of Assets Other Than Inventory. " ASU 2016-16 requires entities to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. Current GAAP prohibits the recognition of current and deferred income taxes for an intra-entity asset transfer until the asset has been sold to an outside party. ASU 2016-16 will be effective for the Company beginning January 1, 2018. The Company is evaluating the impact that ASU 2016-16 will have on its consolidated financial statements and related disclosures. In August 2016, the FASB issued ASU 2016-15, " Classification of Certain Cash Receipts and Cash Payments (Topic 230). " The new guidance is intended to reduce diversity in how certain transactions are classified in the consolidated statement of cash flows. ASU 2016-15 will be effective for the Company beginning January 1, 2018. The Company is evaluating the impact that ASU 2016-15 will have on its consolidated financial statements and related disclosures. In June 2016, the FASB issued ASU 2016-13, " Financial Instruments - Credit Losses (Topic 326). " The amendments in this ASU replace the "incurred loss" methodology for recognizing credit losses with a methodology that reflects expected credit losses and requires consideration of a broader range of information including past events, current conditions and reasonable and supportable forecasts that affect the collectibility of reported amounts of financial assets that are not accounted for at fair value through net income, such as loans, certain debt securities, trade receivables, net investment in leases, off-balance sheet credit exposures and reinsurance receivables. Under the current GAAP incurred loss methodology, recognition of the full amount of credit losses is generally delayed until the loss is probable of incurring. Current GAAP restricts the ability to record credit losses that are expected, but do not yet meet the probability threshold. ASU 2016-13 becomes effective for the Company beginning with the first quarter ending March 31, 2020. The Company is evaluating the impact that ASU 2016-13 will have on its consolidated financial statements and related disclosures. In March 2016, the FASB issued ASU 2016-09, " Compensation - Stock Compensation (Topic 718) ," which simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. ASU 2016-09 is effective for the Company with the quarter ending March 31, 2017. The Company is evaluating the impact that ASU 2016-09 will have on its consolidated financial statements and related disclosures. In February 2016, the FASB issued ASU 2016-02, " Leases (Topic 842) ," which supersedes the guidance in Accounting Standards Codification ("ASC") 840, "Leases." ASU 2016-02 requires a lessee to recognize lease assets and lease liabilities resulting from all leases. ASU 2016-02 retains the distinction between a finance lease and an operating lease. Lessor accounting is largely unchanged from ASC 840. ASU 2016-02 becomes effective for the Company beginning January 1, 2019. However, in transition, the Company will be required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The Company is evaluating the effect that ASU 2016-02 will have on its consolidated financial statements and related disclosures. In January 2016, the FASB issued ASU 2016-01, " Financial Instruments-Overall (Subtopic 825-10) , Recognition and Measurement of Financial Assets and Financial Liabilities. " The amendments in this ASU address certain aspects of recognition, measurement, presentation and disclosure of financial instruments. ASU 2016-01: (1) requires equity investments (except those accounted for under the equity method or those that result in the consolidation of the investee) to be measured at fair value with changes in the fair value recognized in net income; (2) simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment; (3) eliminates the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet; (4) requires the use of the exit price notion when measuring the fair value of financial instruments for disclosure purposes; (5) requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset on the balance sheet or the notes to the financial statements; and (6) clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with the entity’s other deferred tax assets. ASU 2016-01 is effective for the Company beginning January 1, 2018. The Company does not anticipate that ASU 2016-01 will have a material impact on its consolidated financial statements and related disclosures. In May 2015, the FASB issued ASU 2015-09, " Financial Services -Insurance (Topic 944), Disclosures About Short-Duration Contracts ." ASU 2015-09 requires insurance entities to provide additional disclosures related to claims liabilities. The additional disclosure requirements for the annual reports include: (1) claims development information by accident year, on a net of reinsurance basis, for the number of years for which claims incurred remain outstanding but not to exceed the most recent 10 years, and for the most recent reporting period presented, an insurer also needs to disclose the amount of total net outstanding claims for all accident years included in the claims development tables; (2) a reconciliation of claims development information and the aggregate carrying amount of the liability for unpaid claims and claim adjustment expenses; and (3) information about the claims frequency and the amount of the incurred-but-not-reported liabilities for each accident year presented. In addition, a description of the methodology used to determine the amounts disclosed is required. The roll forward of the liability for unpaid claims and claims adjustment expenses, currently required only for annual periods, will also be required for interim periods. ASU 2015-09 became effective for the Company beginning with the annual period ended December 31, 2016, and quarter periods beginning with the first quarter of 2017. Although the adoption of this standard did not have a material impact on its consolidated financial statements, the Company expanded the nature and extent of its insurance contracts disclosures. In February 2015, the FASB issued ASU 2015-02, " Consolidation (Topic 810), Amendments to the Consolidation Analysis " affecting the consolidation evaluation of limited partnerships and similar entities, fees paid to a decision maker or a service provider as a variable interest, and variable interests in a variable interest entity held by related parties of the reporting entities. The amendments became effective for the Company on January 1, 2016. As in previous GAAP, consolidation analysis under ASU 2015-02 contains two primary consolidation models: the voting control model and the variable interest ("VIE") model. An entity being evaluated for consolidation is required to first be subjected to the requirements of the VIE model. Only if the entity fails to meet the requirements to be consolidated under the VIE model, would the voting control consolidation model apply. The adoption of ASU 2015-02 did not have an impact on the Company's consolidated financial statements and related disclosures. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). " ASU 2014-09 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 in the amount to which the entity expects to be entitled. In August 2015, the FASB issued ASU 2015-14, "Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date," which deferred the effective date of ASU 2014-09 for the Company to January 1, 2018. Through the first half of 2016, the FASB issued additional ASUs on Topic 606 that do not change the core principle of the guidance in ASU 2014-09 but merely clarify certain aspects of it. The additional ASUs also become effective for the Company beginning January 1, 2018. As the accounting for insurance contracts is outside of the scope of ASU 2014-09, the Company does not expect the adoption of this ASU to have a material impact on its financial position, results of operations, or cash flows. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2016 | |
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,and secured and unsecured notes payable. Due to their short-term maturity, the carrying values of receivables and accounts payable approximate their fair values. All investments are carried at fair value on the consolidated balance sheets. The following table presents estimated fair values of financial instruments: December 31, 2016 2015 (Amounts in thousands) Assets Investments $ 3,547,560 $ 3,380,642 Total return swaps 667 — Liabilities Total return swaps $ 765 $ 11,525 Options sold 20 260 Secured notes 140,000 140,000 Unsecured note 180,000 150,000 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 in the consolidated statements of operations. See Note 3. Investments for additional information. 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. Liabilities for covered call options of $0.02 million and $0.26 million were included in other liabilities at December 31, 2016 and 2015 , respectively. 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 December 31, 2016 and 2015 based on models using inputs, such as interest rate yield curves and credit spreads, observable for substantially the full term of the contract. 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 4. Fair Value Measurement, 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. The fair values of the secured notes approximated their carrying values. Unsecured Note Payable The fair value of the Company's $180 million unsecured n ote, classified as Level 2 in the fair value hierarchy described in Note 4. Fair Value Measurement, is based on the unadjusted quoted price for similar notes in active markets. The fair value of the unsecured note approximated its carrying value. For additional disclosures regarding methods and assumptions used in estimating fair values, see Note 4. Fair Value Measurement. |
Investments
Investments | 12 Months Ended |
Dec. 31, 2016 | |
Investments [Abstract] | |
Investments | Investments The following table presents (losses) gains due to changes in fair value of investments that are measured at fair value pursuant to application of the fair value option: Year Ended December 31, 2016 2015 2014 (Amounts in thousands) Fixed maturity securities $ (56,584 ) $ (39,304 ) $ 77,208 Equity securities 23,722 (22,988 ) (32,922 ) Short-term investments 57 561 (527 ) Total $ (32,805 ) $ (61,731 ) $ 43,759 The following table presents gross gains (losses) realized on the sales of investments: Year Ended December 31, 2016 2015 2014 (Amounts in thousands) Gross Realized Gains Gross Realized Losses Net Gross Realized Gains Gross Realized Losses Net Gross Realized Gains Gross Realized Losses Net Fixed maturity securities $ 3,327 $ (19,133 ) $ (15,806 ) $ 631 $ (495 ) $ 136 $ 7,015 $ (9,734 ) $ (2,719 ) Equity securities 29,446 (29,945 ) (499 ) 41,305 (58,764 ) (17,459 ) 59,342 (17,705 ) 41,637 Short-term investments 6 (529 ) (523 ) — (1,396 ) (1,396 ) — (1,943 ) (1,943 ) Contractual Maturity At December 31, 2016 , fixed maturity holdings rated below investment grade and non-rated comprised 3.9% of total investments at fair value. Additionally, the Company owns securities that are credit enhanced by financial guarantors that are subject to uncertainty related to market perception of the guarantors’ ability to perform. Determining the estimated fair value of municipal bonds could become more difficult should markets for these securities become illiquid. The following table presents the estimated fair values of the Company's fixed maturity securities at December 31, 2016 by contractual maturity. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Estimated Fair Value (Amounts in thousands) Fixed maturity securities: Due in one year or less $ 381,189 Due after one year through five years 515,049 Due after five years through ten years 316,173 Due after ten years 1,602,142 Total $ 2,814,553 Investment Income The following table presents a summary of net investment income: Year Ended December 31, 2016 2015 2014 (Amounts in thousands) Fixed maturity securities $ 104,111 $ 108,122 $ 104,946 Equity securities 14,629 14,630 17,313 Short-term investments 8,936 9,033 8,561 Total investment income $ 127,676 $ 131,785 $ 130,820 Less: investment expense (5,805 ) (5,486 ) (5,097 ) Net investment income $ 121,871 $ 126,299 $ 125,723 |
Fair Value Measurement
Fair Value Measurement | 12 Months Ended |
Dec. 31, 2016 | |
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 set 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 at fair value on the consolidated balance sheets 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 99.7% of its portfolio from an independent pricing service. For 0.3% 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 December 31, 2016 . At December 31, 2016 and 2015 , $9.1 million and $10.4 million , respectively, of equity securities were valued based on broker quotes for underlying debt and credit instruments and an estimated benchmark spread for similar assets in active markets. 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/Purchased options : 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 residential and commercial 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 $30.0 million and $37.3 million at December 31, 2016 and 2015 , 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. Other asset-backed securities : Comprised of securities that are collateralized by non-mortgage assets, such as automobile loans, 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. Secured notes payable : Valued based on underlying collateral and reset rates for similarly termed notes that are observable in the market. Unsecured notes payable : Valued based on the unadjusted quoted price for similar notes 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, and indicate the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair values: December 31, 2016 Level 1 Level 2 Level 3 Total (Amounts in thousands) Assets Fixed maturity securities: U.S. government bonds and agencies $ 12,275 $ — $ — $ 12,275 Municipal securities — 2,449,292 — 2,449,292 Mortgage-backed securities — 39,777 — 39,777 Corporate securities — 189,688 — 189,688 Collateralized loan obligations — 86,525 — 86,525 Other asset-backed securities — 36,996 — 36,996 Equity securities: Common stock 316,450 — — 316,450 Non-redeemable preferred stock — 31,809 — 31,809 Private equity funds — — 9,068 9,068 Short-term investments: Short-term bonds 70,393 20,233 — 90,626 Money market instruments 285,054 — — 285,054 Other assets: Total return swaps — 667 — 667 Total assets at fair value $ 684,172 $ 2,854,987 $ 9,068 $ 3,548,227 Liabilities Notes payable: Secured notes $ — $ 140,000 $ — $ 140,000 Unsecured notes — 180,000 — 180,000 Other liabilities: Total return swaps — 765 — 765 Options sold 20 — — 20 Total liabilities at fair value $ 20 $ 320,765 $ — $ 320,785 December 31, 2015 Level 1 Level 2 Level 3 Total (Amounts in thousands) Assets Fixed maturity securities: U.S. government bonds and agencies $ 22,507 $ — $ — $ 22,507 Municipal securities — 2,505,040 — 2,505,040 Mortgage-backed securities — 49,838 — 49,838 Corporate securities — 243,372 — 243,372 Collateralized debt obligations — 50,548 — 50,548 Other asset-backed securities — 8,698 — 8,698 Equity securities: Common stock 280,263 — — 280,263 Non-redeemable preferred stock — 24,668 — 24,668 Private equity funds — — 10,431 10,431 Short-term investments: Short-term bonds 69,991 9,850 — 79,841 Money market instruments 105,436 — — 105,436 Total assets at fair value $ 478,197 $ 2,892,014 $ 10,431 $ 3,380,642 Liabilities Notes payable: Secured notes $ — $ 140,000 $ — $ 140,000 Unsecured notes — 150,000 — 150,000 Other liabilities: Total return swaps — 11,525 — 11,525 Options sold 260 — — 260 Total liabilities at fair value $ 260 $ 301,525 $ — $ 301,785 The following table presents a summary of changes in fair value of Level 3 financial assets: Private Equity Funds Year Ended December 31, 2016 2015 (Amounts in thousands) Beginning balance $ 10,431 $ 11,719 Realized losses included in earnings (1,363 ) (4,175 ) Reclassification from other assets — 2,911 Sales — — Settlements — (24 ) Ending balance $ 9,068 $ 10,431 The amount of total losses for the period included in earnings attributable to assets still held at December 31 $ (1,363 ) $ (5,385 ) There were no transfers between Levels 1, 2, and 3 of of the fair value hierarchy in 2016 and 2015 . At December 31, 2016 and 2015, the Company did not have any nonrecurring fair value measurements of nonfinancial assets or nonfinancial liabilities. |
Fixed Assets
Fixed Assets | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Fixed Assets | Fixed Assets The following table presents the components of fixed assets: December 31, 2016 2015 (Amounts in thousands) Land $ 26,770 $ 26,770 Buildings and improvements 134,952 132,529 Furniture and equipment 114,156 109,802 Capitalized software 190,092 178,113 Leasehold improvements 9,369 9,109 475,339 456,323 Less accumulated depreciation and amortization (319,429 ) (299,192 ) Fixed assets, net $ 155,910 $ 157,131 Depreciation expense, including amortization of leasehold improvements, was $20.2 million , $20.5 million , and $22.1 million during 2016 , 2015 , and 2014 , respectively. |
Deferred Policy Acquisition Cos
Deferred Policy Acquisition Costs | 12 Months Ended |
Dec. 31, 2016 | |
Deferred Policy Acquisition Costs Disclosures [Abstract] | |
Deferred Policy Acquisition Costs | Deferred Policy Acquisition Costs Deferred policy acquisition costs were as follows: December 31, 2016 2015 2014 (Amounts in thousands) Balance, beginning of year $ 201,762 $ 197,202 $ 194,466 Policy acquisition costs deferred 561,610 543,791 528,944 Amortization (562,546 ) (539,231 ) (526,208 ) Balance, end of year $ 200,826 $ 201,762 $ 197,202 |
Notes Payable
Notes Payable | 12 Months Ended |
Dec. 31, 2016 | |
Notes Payable [Abstract] | |
Notes Payable | Notes Payable Notes payable consists of the following: December 31, Lender Interest Rate Expiration 2016 2015 (Amounts in thousands) Secured credit facility Bank of America LIBOR plus 40 basis points December 3, 2018 (2) $ 120,000 $ 120,000 Secured loan Union Bank LIBOR plus 40 basis points December 3, 2017 20,000 20,000 Unsecured credit facility Bank of America and Union Bank (1) December 3, 2019 180,000 150,000 Total $ 320,000 $ 290,000 __________ (1) On July 2, 2013, the Company entered into an unsecured $200 million five -year revolving credit facility, which later was expanded to a borrowing capacity of $250 million. The interest rate on borrowings under the credit facility is based on the Company's debt to total capital ratio and ranges from LIBOR plus 112.5 basis points when the ratio is under 15% to LIBOR plus 162.5 basis points when the ratio is above 25% . Commitment fees for the undrawn portions of the credit facility range from 12.5 basis points when the ratio is under 15% to 22.5 basis points when the ratio is above 25% . Debt to capital ratio is expressed as a percentage of (a) consolidated debt to (b) consolidated shareholders' equity plus consolidated debt. In 2016, the interest rate was LIBOR plus 112.5 basis points on the $180 million of borrowings and 12.5 basis points on the undrawn portion of the credit facility. The interest rate was approximately 1.73% at December 31, 2016. (2) Effective December 28, 2016, the Company extended the maturity date from December 3, 2017 to December 3, 2018. The $120 million credit facility is secured by municipal bonds held as collateral. The collateral requirement is calculated as the fair market value of the municipal bonds held as collateral multiplied by the advance rates, which vary based on the credit quality and duration of the assets held and range between 75% and 100% of the fair value of each bond. The $20 million bank loan has collateral requirements similar to those of the $120 million credit facility. The bank loan and credit facilities contain financial covenants pertaining to minimum statutory surplus, debt to capital ratio, and risk-based capital ("RBC") ratio. The Company was in compliance with all of its loan covenants at December 31, 2016 . The aggregated maturities of notes payable are as follows: Maturity (Amounts in thousands) 2017 $ 20,000 2018 120,000 2019 180,000 |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Dec. 31, 2016 | |
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 (options sold) on various equity securities are intended to manage the price risk associated with forecasted purchases or sales of such securities. 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, formed by and consolidated into the Company, 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 on the outstanding notional amount of the underlying obligations. 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 Company paid interest equal to LIBOR plus 145 basis points on approximately $108 million and $95 million of underlying obligations as of December 31, 2016 and 2015 , respectively. The agreement had an initial term of one year , subject to annual renewal. In January 2017, the agreement was renewed for an additional year expiring February 17, 2018, and the interest rate was changed to LIBOR plus 128 basis points. On August 9, 2013, Animas Funding LLC ("AFL"), a special purpose investment vehicle, formed and consolidated by the Company, entered into a three -year total return swap agreement with Citibank, which has been renewed for an additional one-year term through February 17, 2018. Under the total return swap agreement, AFL receives the income equivalent on underlying obligations due to Citibank and pays to Citibank interest on the outstanding notional amount of the underlying obligations. 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. The Company paid interest equal to LIBOR plus 135 basis points on approximately $152 million and $124 million of underlying obligations as of December 31, 2016 and 2015, respectively. The agreement was amended in January 2017 and the interest rate was changed to LIBOR plus 128 basis points. The following tables present the location and amounts of derivative fair values in the consolidated balance sheets and derivative gains (losses) in the consolidated statements of operations: Asset Derivatives Liability Derivatives December 31, 2016 December 31, 2015 December 31, 2016 December 31, 2015 (Amounts in thousands) Total return swaps - Other assets $ 667 $ — $ — $ — Options sold - Other liabilities — — 20 260 Total return swaps - Other liabilities — — 765 11,525 Total derivatives $ 667 $ — $ 785 $ 11,785 Gains (Losses)Recognized in Income Year Ended December 31, 2016 2015 2014 (Amounts in thousands) Total return swaps - Net realized investment gains (losses) $ 11,533 $ (6,438 ) $ (2,969 ) Options sold - Net realized investment gains 3,846 3,081 3,419 Total $ 15,379 $ (3,357 ) $ 450 Most options sold 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 4. Fair Value Measurement. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2016 | |
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 during the periods presented. Goodwill is reviewed annually for impairment and more frequently if potential impairment indicators exist. No impairment indicators were identified during the periods presented. Other Intangible Assets The following table presents the components of other intangible assets: Gross Carrying Amount Accumulated Amortization Net Carrying Amount Useful Lives (Amounts in thousands) (in years) As of December 31, 2016: Customer relationships $ 52,430 $ (39,332 ) $ 13,098 11 Trade names 15,400 (5,133 ) 10,267 24 Technology 4,300 (3,440 ) 860 10 Insurance license 1,400 — 1,400 Indefinite Total intangible assets, net $ 73,530 $ (47,905 ) $ 25,625 As of December 31, 2015: Customer relationships $ 52,430 $ (34,327 ) $ 18,103 11 Trade names 15,400 (4,491 ) 10,909 24 Technology 4,300 (3,010 ) 1,290 10 Insurance license 1,400 — 1,400 Indefinite Total intangible assets, net $ 73,530 $ (41,828 ) $ 31,702 In 2015, the Company recognized $1.4 million of other intangible assets for a state insurance license related to the acquisition of Workmen's Auto Insurance Company. See Note 20. Acquisition for the acquisition's cost allocation. Other intangible assets are reviewed annually for impairment and more frequently if potential impairment indicators exist. No impairment indicators were identified during any of the periods presented. Other intangible assets with definite useful lives are amortized on a straight-line basis over their useful lives. Other intangible assets amortization expense was $6.1 million , $6.0 million , and $6.0 million in the years ended December 31, 2016 , 2015 , and 2014 , respectively. None of the intangible assets with definite useful lives are anticipated to have a residual value. The following table presents the estimated future amortization expense related to other intangible assets as of December 31, 2016 : Year Ending December 31, Amortization Expense (Amounts in thousands) 2017 $ 5,349 2018 5,335 2019 4,906 2020 758 2021 738 Thereafter 7,139 Total $ 24,225 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2016 | |
Components of Income Tax Expense (Benefit), Continuing Operations [Abstract] | |
Income Taxes | Income Taxes Income tax provision The Company and its subsidiaries file a consolidated federal income tax return. The income tax (benefit) expense consisted of the following components: Year Ended December 31, 2016 2015 2014 (Amounts in thousands) Federal Current $ 17,444 $ 21,942 $ 44,469 Deferred (21,947 ) (25,594 ) 20,444 $ (4,503 ) $ (3,652 ) $ 64,913 State Current $ 2,239 $ 943 $ 4,421 Deferred (56 ) (1,203 ) 142 $ 2,183 $ (260 ) $ 4,563 Total Current $ 19,683 $ 22,885 $ 48,890 Deferred (22,003 ) (26,797 ) 20,586 Total $ (2,320 ) $ (3,912 ) $ 69,476 The income tax (benefit) expense reflected in the consolidated statements of operations is reconciled to the federal income tax (benefit) expense on income before income taxes based on a statutory rate of 35% as shown in the table below: Year Ended December 31, 2016 2015 2014 (Amounts in thousands) Computed tax expense at 35% $ 24,753 $ 24,699 $ 86,598 Tax-exempt interest income (26,197 ) (26,993 ) (27,839 ) Dividends received deduction (2,303 ) (1,613 ) (2,027 ) State tax expense 1,907 (287 ) 3,872 Nondeductible expenses 303 575 9,900 Other, net (783 ) (293 ) (1,028 ) Income tax (benefit) expense $ (2,320 ) $ (3,912 ) $ 69,476 Deferred Income Taxes 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 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-planing 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. The following table presents the significant components of the Company’s net deferred tax assets and liabilities: December 31, 2016 2015 (Amounts in thousands) Deferred tax assets: 20% of net unearned premiums $ 77,104 $ 75,406 Discounting of loss reserves and salvage and subrogation recoverable for tax purposes 9,864 9,518 Write-down of impaired investments 726 857 Tax credit carryforward 47,238 36,349 Expense accruals 11,090 11,264 Other deferred tax assets 8,828 9,596 Total gross deferred tax assets 154,850 142,990 Deferred tax liabilities: Deferred policy acquisition costs (70,289 ) (70,617 ) Tax liability on net unrealized gain on securities carried at fair value (15,612 ) (23,095 ) Tax depreciation in excess of book depreciation (10,446 ) (10,742 ) Undistributed earnings of insurance subsidiaries (3,985 ) (4,022 ) Tax amortization in excess of book amortization (3,030 ) (2,514 ) Other deferred tax liabilities (6,211 ) (8,769 ) Total gross deferred tax liabilities (109,573 ) (119,759 ) Net deferred tax assets $ 45,277 $ 23,231 The Company had an alternative minimum tax credit carryforward balance of $47.2 million and $36.3 million at December 31, 2016 and 2015 , respectively, which is not subject to expiration. Uncertainty in Income Taxes 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 $0.8 million increase to the total amount of unrecognized tax benefits related to tax uncertainties during 2016 . The increase was mainly due to 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 2013 through 2015 for federal taxes and 2003 through 2015 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 in settlement discussions with the FTB and believes a reasonable settlement could be reached during 2017 with regards to tax years 2003 through 2010. If a reasonable settlement is not reached, the Company intends to pursue other options, including a formal hearing with the State Board of Equalization or litigation in superior court. Management believes that the resolution of these examinations and assessments will not have a material impact on the consolidated financial statements. The following table presents a reconciliation of the beginning and ending balances of unrecognized tax benefits: December 31, 2016 2015 (Amounts in thousands) Balance at January 1 $ 12,165 $ 12,612 Additions (reductions) based on tax positions related to: Current year 688 932 Prior years 101 (1,379 ) Additions (reductions) as a result of lapse of the applicable statute of limitations — — Balance at December 31 $ 12,954 $ 12,165 As presented above, the balances of unrecognized tax benefits were $13.0 million and $12.2 million at December 31, 2016 and 2015 , respectively. Of these totals, $11.8 million and $10.9 million at December 31, 2016 and 2015, respectively, represent unrecognized tax benefits, net of federal tax benefit and accrued interest expense which, if recognized, would impact the Company’s effective tax rate. Management does not expect the Company's total amount of unrecognized tax benefits to materially increase within the next twelve months. The Company recognizes interest and penalties related to unrecognized tax benefits as a part of income taxes. During the years ended December 31, 2016 , 2015 , and 2014 , the Company recognized net interest and penalty expense, excluding refunds, of $606,000 , $112,000 , and $739,000 , respectively. The Company carried an accrued interest and penalty balance of $3,521,000 and $2,915,000 at December 31, 2016 and 2015 , respectively. |
Losses And Loss Adjustment Expe
Losses And Loss Adjustment Expense Reserves | 12 Months Ended |
Dec. 31, 2016 | |
Insurance Loss Reserves [Abstract] | |
Losses And Loss Adjustment Expense Reserves | Loss and Loss Adjustment Expense Reserves The following table presents the activity in loss and loss adjustment expense reserves: Year Ended December 31, 2016 2015 2014 (Amounts in thousands) Gross reserves at January 1 $ 1,146,688 $ 1,091,797 $ 1,038,984 Less reinsurance recoverable (14,253 ) (14,192 ) (13,635 ) Net reserves at January 1 1,132,435 1,077,605 1,025,349 Acquisition of WAIC reserves — 18,677 — Incurred losses and loss adjustment expenses related to: Current year 2,269,769 2,132,837 1,989,315 Prior years 85,369 12,658 (3,193 ) Total incurred losses and loss adjustment expenses 2,355,138 2,145,495 1,986,122 Loss and loss adjustment expense payments related to: Current year 1,508,362 1,455,245 1,347,967 Prior years 702,124 654,097 585,899 Total payments 2,210,486 2,109,342 1,933,866 Net reserves at December 31 1,277,087 1,132,435 1,077,605 Reinsurance recoverable 13,161 14,253 14,192 Gross reserves at December 31 $ 1,290,248 $ 1,146,688 $ 1,091,797 The increase in the provision for insured events of prior years in 2016 of approximately $85.4 million primarily resulted from the California and Florida automobile lines of business which experienced higher loss severity on liability coverages including Bodily Injury, Combined Single Limits and Property Damage than was originally estimated. The increase in the provision for insured events of prior years in 2015 of approximately $12.7 million primarily resulted from the California homeowners and automobile lines of business outside of California, which was partially offset by favorable development in the California automobile line of business. The decrease in the provision for insured events of prior years in 2014 of approximately $3.2 million primarily resulted from lower than expected loss severity on California personal automobile lines of insurance business partially offset by adverse development in other states. The Company experienced pre-tax catastrophe losses and loss adjustment expenses from severe weather events of $27 million , $19 million , and $11 million in 2016 , 2015 , and 2014 , respectively. The losses in 2016 were primarily due to severe storms outside of California, and rainstorms in California. The losses in 2015 were primarily due to severe storms outside of California, and rainstorms and wildfires in California. The losses in 2014 were primarily related to winter freeze events on the East Coast and severe rainstorms in California. The following is information about incurred and paid claims development as of December 31, 2016 , net of reinsurance, as well as cumulative claim frequency and the total of incurred-but-not-reported liabilities plus expected development on reported claims included within the net incurred claims amounts for our two major product lines: automobile and homeowners lines of business. The cumulative number of reported claims represents open claims, claims closed with payment, and claims closed without payment. It does not include an estimated amount for unreported claims. The number of claims is measured by claim event (such as a car accident or storm damage) and an individual claim event may result in more than one reported claim. The Company considers a claim that does not result in a liability as a claim closed without payment. The information about incurred and paid claims development for the years ended December 31, 2007 to 2015 is presented as unaudited supplementary information. Incurred Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance (Automobile Insurance) As of December 31, 2016 Total of Incurred But Not Reported Liabilities Plus Expected Development on Reported Claims Cumulative Number of Reported Claims Accident Year For the Years Ended December 31, 2007 (1) 2008 (1) 2009 (1) 2010 (1) 2011 (1) 2012 (1) 2013 (1) 2014 (1) 2015 (1) 2016 (Amounts in thousands) (Amounts in thousands) 2007 $ 1,591,217 $ 1,610,874 $ 1,614,648 $ 1,624,875 $ 1,633,606 $ 1,633,169 $ 1,634,127 $ 1,635,529 $ 1,636,379 $ 1,636,065 $ 52 230 2008 1,505,732 1,440,301 1,442,691 1,455,858 1,461,084 1,463,659 1,465,623 1,466,108 1,466,137 82 199 2009 1,372,833 1,349,025 1,361,116 1,361,652 1,365,551 1,371,779 1,372,694 1,372,259 166 186 2010 1,367,547 1,357,750 1,364,307 1,374,638 1,379,336 1,381,056 1,386,105 390 184 2011 1,343,919 1,367,000 1,380,557 1,388,363 1,393,878 1,398,518 4,069 181 2012 1,424,754 1,408,222 1,409,104 1,414,878 1,426,735 4,531 181 2013 1,448,567 1,431,058 1,447,881 1,458,421 10,873 185 2014 1,467,175 1,454,366 1,473,545 32,532 180 2015 1,551,105 1,588,443 90,010 169 2016 1,672,853 303,353 145 Total $ 14,879,081 __________ (1) The information for the years 2007 to 2015 is presented as unaudited supplemental information. Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance (Automobile Insurance) For the Years Ended December 31, Accident Year 2007 (1) 2008 (1) 2009 (1) 2010 (1) 2011 (1) 2012 (1) 2013 (1) 2014 (1) 2015 (1) 2016 (Amounts in thousands) 2007 $ 1,040,933 $ 1,365,854 $ 1,496,543 $ 1,581,001 $ 1,615,964 $ 1,628,413 $ 1,633,178 $ 1,634,888 $ 1,635,631 $ 1,636,204 2008 992,844 1,226,787 1,345,354 1,418,274 1,450,172 1,459,216 1,463,384 1,464,763 1,465,832 2009 913,340 1,137,807 1,260,424 1,326,439 1,355,210 1,363,526 1,370,564 1,371,956 2010 908,954 1,143,984 1,268,142 1,335,871 1,365,464 1,375,799 1,384,333 2011 926,983 1,152,459 1,277,808 1,347,082 1,378,920 1,391,101 2012 955,647 1,194,648 1,304,511 1,372,828 1,409,911 2013 974,445 1,217,906 1,340,724 1,413,999 2014 967,481 1,231,413 1,358,472 2015 1,040,253 1,336,223 2016 1,094,006 Total $ 13,862,037 All outstanding liabilities before 2007, net of reinsurance (212 ) Loss and allocated loss adjustment expense reserves, net of reinsurance $ 1,016,832 __________ (1) The information for the years 2007 to 2015 is presented as unaudited supplemental information. Incurred Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance (Homeowners' Insurance) As of December 31, 2016 Total of Incurred But Not Reported Liabilities Plus Expected Development on Reported Claims Cumulative Number of Reported Claims Accident Year For the Years Ended December 31, 2007 (1) 2008 (1) 2009 (1) 2010 (1) 2011 (1) 2012 (1) 2013 (1) 2014 (1) 2015 (1) 2016 (Amounts in thousands) (Amounts in thousands) 2007 $ 119,505 $ 116,950 $ 112,042 $ 111,378 $ 109,836 $ 110,052 $ 110,092 $ 110,161 $ 110,142 $ 110,204 $ 42 14 2008 146,486 139,549 138,605 139,142 138,190 138,803 139,149 139,156 139,216 5 16 2009 135,889 135,000 131,680 133,087 133,121 134,718 134,597 134,478 (3 ) 17 2010 165,727 157,566 160,983 160,472 160,206 160,015 159,608 (17 ) 21 2011 167,414 170,623 170,052 169,600 169,390 169,621 325 23 2012 196,063 188,010 190,376 191,548 192,057 585 25 2013 191,903 188,915 188,026 186,795 775 23 2014 199,298 202,621 203,218 2,993 25 2015 234,800 234,881 9,431 24 2016 250,440 36,538 23 Total $ 1,780,518 __________ (1) The information for the years 2007 to 2015 is presented as unaudited supplemental information. Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance (Homeowners' Insurance) For the Years Ended December 31, Accident Year 2007 (1) 2008 (1) 2009 (1) 2010 (1) 2011 (1) 2012 (1) 2013 (1) 2014 (1) 2015 (1) 2016 (Amounts in thousands) 2007 $ 71,165 $ 100,774 $ 104,340 $ 108,404 $ 109,305 $ 109,874 $ 109,932 $ 109,949 $ 110,064 $ 110,075 2008 86,954 122,239 129,821 135,500 137,284 138,137 138,680 138,809 138,922 2009 86,034 119,306 126,591 130,928 132,180 134,381 134,378 134,301 2010 95,057 137,628 149,084 155,191 156,853 158,053 158,943 2011 111,909 153,845 162,870 166,375 167,806 168,621 2012 128,618 175,029 182,756 188,121 190,373 2013 133,528 174,295 180,858 183,860 2014 139,615 186,996 194,605 2015 163,196 213,994 2016 173,435 Total $ 1,667,129 All outstanding liabilities before 2007, net of reinsurance 2,661 Loss and allocated loss adjustment expense reserves, net of reinsurance $ 116,050 __________ (1) The information for the years 2007 to 2015 is presented as unaudited supplemental information. The following is unaudited supplementary information about average historical claims duration as of December 31, 2016. Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance Years 1 2 3 4 5 6 7 8 9 10 Automobile insurance 66.0 % 17.1 % 8.5 % 4.9 % 2.2 % 0.7 % 0.4 % 0.1 % 0.1 % — Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance Years 1 2 3 4 5 6 7 8 9 10 Homeowners insurance 66.1 % 24.3 % 4.6 % 3.0 % 1.0 % 0.7 % 0.2 % — 0.1 % — The reconciliation of the net incurred and paid claims development tables to the liability for claims and claim adjustment expenses in the consolidated balance sheets is as follows. Reconciliation of the Disclosure of Incurred and Paid Claims Development to the Loss and Loss Adjustment Expense Reserves December 31, 2016 (Amounts in thousands) Net outstanding liabilities Automobile insurance $ 1,016,832 Homeowners' insurance 116,050 WAIC automobile insurance 12,232 Other short-duration insurance lines 51,320 Loss and loss adjustment expense reserves, net of reinsurance 1,196,434 Reinsurance recoverable on unpaid claims Automobile insurance 12,601 Homeowners' insurance 199 Other short-duration insurance lines 360 Total reinsurance recoverable on unpaid claims 13,160 Insurance lines other than short-duration 1,480 Unallocated claims adjustment expenses 79,174 80,654 Total gross loss and loss adjustment expense reserves $ 1,290,248 |
Dividends
Dividends | 12 Months Ended |
Dec. 31, 2016 | |
Dividends [Abstract] | |
Dividends | Dividends The following table presents shareholder dividends paid: Year Ended December 31, 2016 2015 2014 (Amounts in thousands, except per share data) Total paid $ 137,201 $ 136,386 $ 135,496 Per share paid $ 2.4825 $ 2.4725 $ 2.4625 The Insurance Companies are subject to the financial capacity guidelines established by their domiciliary states. The payment of dividends from statutory unassigned surplus of the Insurance Companies is restricted, subject to certain statutory limitations. As of December 31, 2016 , the insurance subsidiaries of the Company are permitted to pay approximately $144 million in dividends in 2017 to Mercury General without the prior approval of the DOI of domiciliary states. The above statutory regulations may have the effect of indirectly limiting the ability of the Company to pay shareholder dividends. During 2016 , 2015 , and 2014 , the Insurance Companies paid Mercury General ordinary dividends of $111 million , $133 million , and $225 million , respectively. On February 3, 2017, the Board of Directors declared a $0.6225 quarterly dividend payable on March 30, 2017 to shareholders of record on March 16, 2017. |
Statutory Balances and Accounti
Statutory Balances and Accounting Practices | 12 Months Ended |
Dec. 31, 2016 | |
Statutory Balances And Accounting Practices [Abstract] | |
Statutory Balances and Accounting Practices | Statutory Balances and Accounting Practices The Insurance Companies prepare their statutory-basis financial statements in conformity with accounting practices prescribed or permitted by the insurance departments of their domiciliary states. Prescribed statutory accounting practices primarily include those published as statements of statutory accounting principles by the National Association of Insurance Commissioners (the "NAIC"), as well as state laws, regulations, and general administrative rules. Permitted statutory accounting practices encompass all accounting practices not so prescribed. As of December 31, 2016 , there were no material permitted statutory accounting practices utilized by the Insurance Companies. The following table presents the statutory net income, and statutory capital and surplus of the Insurance Companies, as reported to regulatory authorities: Year Ended December 31, 2016 2015 2014 (Amounts in thousands) Statutory net income (1) $ 82,359 $ 123,984 $ 155,654 Statutory capital and surplus $ 1,441,571 $ 1,451,950 $ 1,438,281 __________ (1) Statutory net income reflects differences from GAAP net income, including changes in the fair value of the investment portfolio as a result of the application of the fair value option. The Insurance Companies must comply with minimum capital requirements under applicable state laws and regulations. The RBC formula is used by insurance regulators to monitor capital and surplus levels. It was designed to capture the widely varying elements of risks undertaken by writers of different lines of insurance business having differing risk characteristics, as well as writers of similar lines where differences in risk may be related to corporate structure, investment policies, reinsurance arrangements, and a number of other factors. The Company periodically monitors the RBC level of each of the Insurance Companies. As of December 31, 2016, 2015, and 2014, each of the Insurance Companies exceeded the minimum required RBC level , as determined by the NAIC and adopted by the state insurance regulators. None of the Insurance Companies’ RBC ratios were less than 375% of the authorized control level RBC as of December 31, 2016 , 2015 and 2014 . Generally, an RBC ratio of 200% or less would require some form of regulatory or company action. |
Profit Sharing Plan and Annual
Profit Sharing Plan and Annual Cash Bonuses | 12 Months Ended |
Dec. 31, 2016 | |
Deferred Compensation Arrangements [Abstract] | |
Profit Sharing Plan and Annual Cash Bonuses | Profit Sharing Plan and Annual Cash Bonuses The Company’s employees are eligible to become members of the Profit Sharing Plan (the "Plan"). The Company, at the option of the Board of Directors, may make annual contributions to the Plan, and the contributions are not to exceed the greater of the Company’s net income for the plan year or its retained earnings at that date. In addition, the annual contributions may not exceed an amount equal to 15% of the compensation paid or accrued during the year to all participants under the Plan. No contributions were made in the past three years . The Plan includes an option for employees to make salary deferrals under Section 401(k) of the Internal Revenue Code. The matching contributions, at a rate set by the Board of Directors, totaled $8.2 million , $8.5 million , and $8.0 million for 2016 , 2015 , and 2014 , respectively. The Plan also includes an employee stock ownership plan that covers substantially all employees. The Board of Directors authorizes the Plan to purchase the Company’s common stock in the open market for allocation to the Plan participants. No purchases were made during the past three years . The Company also provides annual cash bonuses to eligible employees based on performance criteria for each recipient and for the Company as a whole. The Company performance goals were based on the Company's premium growth and combined ratio. The Company paid annual cash bonuses of $16.8 million , $20.7 million , and $19.1 million in 2016 , 2015 , and 2014 , respectively. |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation | Share-Based Compensation In February 2015, the Company adopted the 2015 Incentive Award Plan (the "2015 Plan"), replacing the 2005 Equity Incentive Plan (the "2005 Plan") which expired in January 2015. The 2015 Plan was approved at the Company's Annual Meeting of Shareholders in May 2015. A maximum of 4,900,000 shares of common stock under the 2015 Plan are authorized for issuance upon exercise of stock options, stock appreciation rights and other awards, or upon vesting of restricted or deferred stock awards. As of December 31, 2016 , only stock options and restricted stock unit awards have been granted under these plans. Year Ended December 31, 2016 2015 2014 (Amounts in thousands) Cash received from stock option exercises $ 1,505 $ 2,111 $ 6,247 Compensation cost, all share-based awards 142 5,208 4,112 Excess tax benefit, all share-based awards 913 27 148 Stock Option Awards Beginning January 1, 2008, stock options granted, for which the Company has recognized share-based compensation expense, become exercisable at a rate of 25% per year beginning one year from the date granted, are granted at the closing price of the Company's stock on the date of grant, and expire after 10 years . Prior to January 1, 2008, stock options granted became exercisable at a rate of 20% per year. No stock options were awarded in 2016 , 2015 , and 2014 under the 2015 Plan or 2005 Plan. The fair values of stock options awarded in 2013 under the 2005 Plan were estimated on the dates of grant using a closed-form option valuation model (Black-Scholes). The following table provides the assumptions used in the calculation of grant-date fair values of stock options awarded during 2013 based on the Black-Scholes option pricing model: 2013 Weighted-average grant-date fair value $7.11 Expected volatility 33.16% - 33.18% Weighted-average expected volatility 33.17% Risk-free interest rate 0.88% - 1.60% Expected dividend yield 5.40% - 5.76% Expected term in months 72 Expected volatilities are based on historical volatility of the Company’s stock over the term of the stock options. The Company estimated the expected term of stock options, which represents the period of time that stock options granted are expected to be outstanding, by using historical exercise patterns and post-vesting termination behavior. The risk free interest rate is determined based on U.S. Treasury yields with equivalent remaining terms in effect at the time of the grant. The following table presents a summary of the stock option activity under the Company’s plans for the year ended December 31, 2016 : Shares Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (in 000’s) Outstanding at January 1, 2016 168,000 $ 48.14 Granted — — Exercised (62,500) $ 46.12 Canceled or expired (20,000) $ 57.10 Outstanding at December 31, 2016 85,500 $ 47.52 3.1 $ 1,085 Exercisable at December 31, 2016 65,500 $ 48.73 2.1 $ 752 The aggregate intrinsic values in the table above represent the total pre-tax intrinsic value (the difference between the Company’s closing stock price and the stock option exercise price, multiplied by the number of in-the-money stock options) that would have been received by the stock option holders had all stock options been exercised on December 31, 2016 . The aggregate intrinsic values of stock options exercised were $591,000 , $303,000 , and $1,160,000 during 2016 , 2015 , and 2014 , respectively. The total fair value of stock options vested during each of 2016, 2015, and 2014 was $142,000 . The following table presents information regarding stock options outstanding at December 31, 2016 : Options Outstanding Options Exercisable Range of Exercise Prices Number of Options Weighted-Average Remaining Contractual Life (Years) Weighted- Average Exercise Price Number of Options Weighted- Average Exercise Price $33.61-$45.30 41,000 5.7 $ 42.44 21,000 $ 41.40 $47.61-$50.35 15,000 1.3 $ 48.52 15,000 $ 48.52 $51.51-$54.93 29,500 0.4 $ 54.06 29,500 $ 54.06 As of December 31, 2016 , $60,000 of total unrecognized compensation cost related to non-vested stock options is expected to be recognized over a weighted-average remaining contractual life of 0.5 . Restricted Stock Unit Awards Under the 2015 Plan and 2005 Plan, the Compensation Committee of the Company’s Board of Directors granted performance-based vesting restricted stock unit awards to the Company’s senior management and key employees. The following table presents the restricted stock unit grants summary at December 31, 2016 : Grant Year 2016 2015 2014 Three-year performance period ending December 31, 2018 2017 2016 Vesting shares, target (net of forfeited) 93,250 95,750 82,000 Vesting shares, maximum (net of forfeited) 174,844 179,531 153,750 The following table presents a summary of restricted stock unit awards activity during the years indicated: Year Ended December 31, 2016 2015 2014 Shares Weighted- Average Fair Value per Share Shares Weighted- Average Fair Value per Share Shares Weighted- Average Fair Value per Share Outstanding at January 1 263,250 $ 45.94 167,000 $ 41.15 170,500 $ 39.64 Granted 95,750 $ 53.49 100,250 $ 53.80 93,500 $ 45.17 Vested (78,500 ) $ 36.82 — — — — Forfeited/Canceled (9,500) $ 50.46 (4,000) $ 43.10 (16,500) $ 43.99 Expired — — — — (80,500) $ 44.01 Outstanding at December 31 271,000 $ 51.09 263,250 $ 45.94 167,000 $ 41.15 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 2014 , 2015 and 2016 grants, vesting is based on the Company’s cumulative underwriting income, annual underwriting income, and net earned premium growth. As of December 31, 2016 , 2,500 , 3,500 , and 3,500 target restricted stock units granted in 2016 , 2015 and 2014 , respectively, have been forfeited because the recipients were no longer employed by the Company. Expired shares represent shares that did not meet the vesting requirements. The fair value of each restricted stock unit grant was determined based on the closing price of the Company's common stock on the grant date for awards classified as equity and on each reporting date for awards classified as a liability. 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 will be recognized and any recognized compensation cost would be reversed. In February 2016, 88,074 shares of common stock, net of 58,822 shares withheld for payroll taxes, were issued upon the vesting of 146,896 RSUs awarded in 2013 resulting from the attainment of performance goals above the target threshold during the three-year performance period from 2013 to 2015. At December 31, 2016, the Company determined that it is probable that the Company's Board of Directors will modify the payment method for the vested 2014 grant awards and pay for the vested awards in cash in lieu of shares of the Company's common stock. As a result, the 2014 grants were reclassified from equity to liability awards at December 31, 2016. $3.4 million of the amount previously recognized in additional paid-in capital for the 2014 grant awards was reclassified to other liabilities in the consolidated balance sheets at December 31, 2016. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share Reconciliation [Abstract] | |
Earnings Per Share | Earnings Per Share The following table presents a reconciliation of the numerators and denominators of the basic and diluted earnings per share calculations: Year Ended December 31, 2016 2015 2014 Income (Numerator) Weighted Shares (Denominator) Per-Share Amount Income (Numerator) Weighted Shares (Denominator) Per-Share Amount Income (Numerator) Weighted Shares (Denominator) Per-Share Amount (Amounts and numbers in thousands, except per-share data) Basic EPS Income available to common stockholders $ 73,044 55,249 $ 1.32 $ 74,479 55,157 $ 1.35 $ 177,949 55,008 $ 3.23 Effect of dilutive securities: Options — 11 — 15 — 12 RSUs — 42 — 37 — — Diluted EPS Income available to common stockholders after assumed conversions $ 73,044 55,302 $ 1.32 $ 74,479 55,209 $ 1.35 $ 177,949 55,020 $ 3.23 Potentially dilutive securities representing approximately 27,600 , 67,000 , and 252,000 shares of common stock for 2016 , 2015 , and 2014 , respectively, were excluded from the computation of diluted earnings per common share because their effect would have been anti-dilutive. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Operating Leases The Company is obligated under various non-cancellable lease agreements providing for office space, automobiles, and office equipment that expire at various dates through the year 2022 . For leases that contain predetermined escalations of the minimum rentals, the Company recognizes the related rent expense on a straight-line basis and records the difference between the recognized rental expense and amounts payable under the leases as deferred rent in other liabilities. This liability amounted to $2.4 million and $3.6 million at December 31, 2016 and 2015 , respectively. Total rent expense under these lease agreements was $19.7 million , $16.0 million , and $14.6 million for 2016 , 2015 , and 2014 , respectively. The following table presents future minimum commitments for operating leases as of December 31, 2016 : Year Ending December 31, Operating Leases (Amounts in thousands) 2017 $ 14,647 2018 6,784 2019 2,713 2020 1,945 2021 861 Thereafter 148 California Earthquake Authority ("CEA") The CEA is a quasi-governmental organization that was established to provide a market for earthquake coverage to California homeowners. The Company places all new and renewal earthquake coverage offered with its homeowners policies directly with the CEA. The Company receives a small fee for placing business with the CEA, which is recorded as other income in the consolidated statements of operations. Upon the occurrence of a major seismic event, the CEA has the ability to assess participating companies for losses. These assessments are made after CEA capital has been expended and are based upon each company’s participation percentage multiplied by the amount of the total assessment. Based upon the most recent information provided by the CEA, the Company’s maximum total exposure to CEA assessments at April 1, 2016, the most recent date at which information was available, was approximately $60.2 million . There was no assessment made in 2016 . Regulatory Matters In March 2006, the California DOI issued an Amended Notice of Non-Compliance to a Notice of Non-Compliance originally issued in February 2004 (as amended, “2004 NNC”) alleging that the Company charged rates in violation of the California Insurance Code, willfully permitted its agents to charge broker fees in violation of California law, and willfully misrepresented the actual price insurance consumers could expect to pay for insurance by the amount of a fee charged by the consumer's insurance broker. The California DOI sought to impose a fine for each policy on which the Company allegedly permitted an agent to charge a broker fee, to impose a penalty for each policy on which the Company allegedly used a misleading advertisement, and to suspend certificates of authority for a period of one year. In January 2012, the administrative law judge bifurcated the 2004 NNC between (a) the California DOI’s order to show cause (the “OSC”), in which the California DOI asserts the false advertising allegations and accusation, and (b) the California DOI’s notice of noncompliance (the “NNC”), in which the California DOI asserts the unlawful rate allegations. In February 2012, the administrative law judge (“ALJ”) submitted a proposed decision dismissing the NNC, but the Commissioner rejected the ALJ’s proposed decision. The Company challenged the rejection in Los Angeles Superior Court in April 2012, and the Commissioner responded with a demurrer. Following a hearing, the Superior Court sustained the Commissioner’s demurrer, based on the Company’s failure to exhaust its administrative remedies, and the Company appealed. The Court of Appeal affirmed the Superior Court's ruling that the Company was required to exhaust its administrative remedies, but expressly preserved for later appeal the legal basis for the ALJ’s dismissal: violation of the Company’s due process rights. Following an evidentiary hearing in April 2013, post-hearing briefs, and an unsuccessful mediation, the ALJ closed the evidentiary record on April 30, 2014. Although a proposed decision was to be submitted to the Commissioner on or before June 30, 2014, after which the Commissioner would have 100 days to accept, reject or modify the proposed decision, the proposed decision was not submitted until December 8, 2014. On January 7, 2015, the Commissioner adopted the ALJ’s proposed decision, which became the Commissioner’s adopted order (the "Order"). The decision and Order found that from the period July 1, 1996, through 2006, the Company’s "brokers" were actually operating as "de facto agents" and that the charging of "broker fees" by these producers constituted the charging of "premium" in excess of the Company's approved rates, and assessed a civil penalty in the amount of $27.6 million against the Company. On February 9, 2015, the Company filed a Writ of Administrative Mandamus and Complaint for Declaratory Relief (the “Writ”) in the Orange County Superior Court seeking, among other things, to require the Commissioner to vacate the Order, to stay the Order while the Superior Court action is pending, and to judicially declare as invalid the Commissioner’s interpretation of certain provisions of the California Insurance Code. Subsequent to the filing of the Writ, a consumer group petitioned and was granted the right to intervene in the Superior Court action. The Court did not order a stay, and the $27.6 million assessed penalty was paid in March 2015. The Company filed an amended Writ on September 11, 2015, adding an explicit request for a refund of the penalty, with interest. On August 12, 2016, the Superior Court issued its ruling on the Writ, for the most part granting the relief sought by the Company. The Superior Court found that the Commissioner and the California DOI did commit due process violations, but declined to dismiss the case on those grounds. The Superior Court also agreed with the Company that the broker fees at issue were not premium, and that the penalties imposed by the Commissioner were improper, and therefore vacated the Order imposing the penalty. The Superior Court entered final judgment on November 17, 2016, issuing a writ requiring the Commissioner to refund the entire penalty amount within 120 days, plus prejudgment interest at the statutory rate of 7%. The Company has filed a motion with the ALJ to dismiss the false advertising OSC portion of the NNC based on the Superior Court's findings and legal reasoning. On January 12, 2017, the Commissioner filed a notice of appeal of the Superior Court's judgment entered on November 17, 2016. Since the matter has been appealed, the Company has not yet recognized in the consolidated financial statements the vacation of the Commissioner’s Order or established a receivable for the refund of the $27.6 million penalty plus any related interest owed. The Company has also accrued a liability for the estimated cost to continue to defend itself in the false advertising OSC. Based upon its understanding of the facts and the California Insurance Code, the Company does not expect that the ultimate resolution of the false advertising OSC will be material to its financial position. Litigation 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 Note 1. Summary of Significant Accounting Policies. 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. The Company is also involved in proceedings relating to assessments and rulings made by the FTB. See Note 10. Income Taxes. There are no environmental proceedings arising under federal, state, or local laws or regulations to be discussed. |
Risks and Uncertainties
Risks and Uncertainties | 12 Months Ended |
Dec. 31, 2016 | |
Risks and Uncertainties [Abstract] | |
Risks and Uncertainties | Risks and Uncertainties Many businesses are experiencing the effects of uncertain conditions in the global economy and capital markets, reduced consumer spending and confidence, and continued volatility, which could adversely impact the Company’s financial condition, results of operations, and liquidity. Further, volatility in global capital markets could adversely affect the Company’s investment portfolio. The Company is unable to predict the impact of current and future global economic conditions on the United States, and California, where the majority of the Company’s business is produced. The Company applies the fair value option to its investment portfolio. Rapidly changing and unprecedented credit and equity market conditions could materially impact the valuation of securities as reported within the Company’s financial statements, and the period-to-period changes in value could vary significantly. Decreases in market value may have a material adverse effect on the Company’s financial condition or results of operations. |
Quarterly Financial Information
Quarterly Financial Information (Unaudited) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Data [Abstract] | |
Quarterly Financial Information (Unaudited) | Quarterly Financial Information (Unaudited) The following table presents summarized quarterly financial data for 2016 and 2015 : Quarter Ended March 31 June 30 September 30 December 31 (Amounts in thousands, except per share data) 2016 Net premiums earned $ 767,085 $ 779,321 $ 790,850 $ 794,517 Change in fair value of investments pursuant to the fair value option 18,531 37,127 (21,132 ) (67,332 ) Income before income taxes 26,034 64,335 31,625 (51,270 ) Net income (loss) 23,323 48,873 26,930 (26,082 ) Basic earnings per share (1) 0.42 0.88 0.49 (0.47 ) Diluted earnings per share (1) 0.42 0.88 0.49 (0.47 ) Dividends paid per share 0.6200 0.6200 0.6200 0.6225 2015 Net premiums earned $ 720,737 $ 731,546 $ 745,520 $ 760,094 Change in fair value of investments pursuant to the fair value option (4,884 ) (40,783 ) (18,538 ) 2,474 Income before income taxes 29,859 4,511 12,267 23,930 Net income 26,165 9,639 15,270 23,405 Basic earnings per share (1) 0.47 0.17 0.28 0.42 Diluted earnings per share (1) 0.47 0.17 0.28 0.42 Dividends paid per share 0.6175 0.6175 0.6175 0.6200 __________ (1) The basic and diluted earnings per share do not sum due to rounding. Net income during 2016 was primarily affected by an increase in losses and loss adjustment expenses partially offset by an increase in net premiums earned, unfavorable development on prior accident years' loss and loss adjustment expense reserves, severe storms outside of California and rainstorms in California, and net realized investment losses. The primary cause of the net loss for the fourth quarter of 2016 was the declines in the fair value of the Company’s fixed maturity securities due to the rising market interest rates. Net income for 2015 was primarily affected by net realized investment losses, and an increase in losses and loss adjustment expenses partially offset by an increase in net premiums earned. Net income for the fourth quarter of 2015 was affected by net realized investment losses of $8.2 million . |
Acquisition
Acquisition | 12 Months Ended |
Dec. 31, 2016 | |
Business Combinations [Abstract] | |
Acquisition | Acquisition Pursuant to an October 22, 2014 Stock Purchase Agreement, the Company purchased all the issued and outstanding shares of Workmen’s Auto Insurance Company ("WAIC"), a California domiciled property and casualty insurance company, on January 2, 2015. WAIC is a Los Angeles-based non-standard, private passenger automobile insurance company that operates predominantly in California. The Company intends to use the WAIC non-standard automobile product to complement the Company’s preferred and standard product offerings. The Company paid $8 million in cash for the shares of WAIC, of which $2 million has been held 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 the evaluation performed at the acquisition date and at December 31, 2015, of the claims reserves for WAIC for losses and loss adjustment expenses incurred on or prior to June 30, 2014, the Company estimated that it would recover the $2 million held in escrow and, therefore, the Company deducted it from cash consideration to arrive at the fair value of total consideration transferred. The Company recovered the $2 million held in escrow in 2016. In accordance with regulatory approval requirements, the Company made a $15 million cash capital contribution to WAIC on January 12, 2015. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The Company is primarily engaged in writing personal automobile insurance and provides related property and casualty insurance products to its customers through 14 subsidiaries in 11 states, principally in California. The Company has one reportable business segment - the Property and Casualty business segment. The Company’s Chief Operating Decision Maker evaluates operating results based on pre-tax underwriting results which is calculated as net premiums earned less (a) losses and loss adjustment expenses; and (b) underwriting expenses (policy acquisition costs and other operating expenses). Expenses are allocated based on certain assumptions that are primarily related to premiums and losses. The Company’s net investment income, net realized investment gains (losses), other income, and interest expense are excluded in evaluating pre-tax underwriting profit. The Company does not allocate its assets, including investments, or income taxes in evaluating pre-tax underwriting profit. Property and Casualty Lines The Property and Casualty business segment offers several insurance products to the Company’s individual customers and small business customers. These insurance products are: private passenger automobile, which is the Company’s primary business, and related insurance products such as homeowners, commercial automobile and commercial property. These insurance products are primarily sold to the Company’s individual customers and small business customers, which increases retention of the Company’s private personal automobile client base. The insurance products comprising the Property and Casualty business segment are sold through the same distribution channels, mainly through independent and 100% owned insurance agents, and go through a similar underwriting process. Other Lines The Other business segment represents net premiums written and earned from an operating segment that does not meet the quantitative thresholds required to be considered a reportable segment. This operating segment offers automobile mechanical breakdown warranties which are primarily sold through automobile dealerships and credit unions. The following table presents operating results by reportable segment for the years ended: December 31, 2016 December 31, 2015 December 31, 2014 Property & Casualty Lines Other Total Property & Casualty Lines Other Total Property & Casualty Lines Other Total (Amounts in millions) Net premiums earned $ 3,089.9 $ 41.9 $ 3,131.8 $ 2,906.6 $ 51.3 $ 2,957.9 $ 2,737.3 $ 58.9 $ 2,796.2 Less: Losses and loss adjustment expenses 2,333.2 21.9 2,355.1 2,117.3 28.2 2,145.5 1,951.4 34.7 1,986.1 Underwriting expenses 780.4 17.5 797.9 770.0 20.0 790.0 749.7 25.9 775.6 Underwriting (loss) gain (23.7 ) 2.5 (21.2 ) 19.3 3.1 22.4 36.2 (1.7 ) 34.5 Investment income 121.9 126.3 125.7 Net realized investment (losses) gains (34.3 ) (83.8 ) 81.2 Other income 8.3 8.9 8.7 Interest expense (4.0 ) (3.2 ) (2.6 ) Pre-tax income $ 70.7 $ 70.6 $ 247.4 Net income $ 73.0 $ 74.5 $ 177.9 The following table presents the Company’s net premiums earned and direct premiums written by line of insurance business for the years ended: December 31, 2016 December 31, 2015 December 31, 2014 Property & Casualty Lines Other Total Property & Casualty Lines Other Total Property & Casualty Lines Other Total (Amounts in millions) Private passenger automobile $ 2,435.7 $ — $ 2,435.7 $ 2,308.6 $ — $ 2,308.6 $ 2,203.0 $ — $ 2,203.0 Homeowners 414.0 — 414.0 379.7 — 379.7 347.9 — 347.9 Commercial automobile 161.3 — 161.3 144.4 — 144.4 121.8 — 121.8 Other 78.9 41.9 120.8 73.9 51.3 125.2 64.6 58.9 123.5 Net premiums earned $ 3,089.9 $ 41.9 $ 3,131.8 $ 2,906.6 $ 51.3 2,957.9 $ 2,737.3 $ 58.9 $ 2,796.2 Private passenger automobile $ 2,452.7 $ — $ 2,452.7 $ 2,345.8 $ — $ 2,345.8 $ 2,223.1 $ — $ 2,223.1 Homeowners 436.9 — 436.9 402.2 — 402.2 374.5 — 374.5 Commercial automobile 166.1 — 166.1 153.5 — 153.5 135.9 — 135.9 Other 89.0 27.3 116.3 81.6 29.8 111.4 75.4 44.3 119.7 Direct premiums written $ 3,144.7 $ 27.3 $ 3,172.0 $ 2,983.1 $ 29.8 $ 3,012.9 $ 2,808.9 $ 44.3 $ 2,853.2 |
Summary Of Investments Other Th
Summary Of Investments Other Than Investments In Related Parties | 12 Months Ended |
Dec. 31, 2016 | |
Summary of Investments, Other than Investments in Related Parties [Abstract] | |
Summary Of Investments Other Than Investments In Related Parties | MERCURY GENERAL CORPORATION AND SUBSIDIARIES SUMMARY OF INVESTMENTS OTHER THAN INVESTMENTS IN RELATED PARTIES DECEMBER 31, 2016 Type of Investment Cost Fair Value Amounts in the Balance Sheet (Amounts in thousands) Fixed maturity securities: U.S. government bonds and agencies $ 12,288 $ 12,275 $ 12,275 Municipal securities 2,432,181 2,449,292 2,449,292 Mortgage-backed securities 39,082 39,777 39,778 Corporate securities 189,780 189,688 189,688 Collateralized loan obligations 85,429 86,525 86,525 Other asset-backed securities 36,650 36,996 36,996 Total fixed maturity securities 2,795,410 2,814,553 2,814,554 Equity securities: Common stock 286,503 316,450 316,449 Non-redeemable preferred stock 32,436 31,809 31,809 Private equity funds 12,831 9,068 9,068 Total equity securities 331,770 357,327 357,326 Short-term investments 375,700 375,680 375,680 Total investments $ 3,502,880 $ 3,547,560 $ 3,547,560 SCHEDULE I, Continued MERCURY GENERAL CORPORATION AND SUBSIDIARIES SUMMARY OF INVESTMENTS OTHER THAN INVESTMENTS IN RELATED PARTIES DECEMBER 31, 2015 Type of Investment Cost Fair Value Amounts in the Balance Sheet (Amounts in thousands) Fixed maturity securities: U.S. government bonds and agencies $ 22,542 $ 22,507 $ 22,507 Municipal securities 2,417,046 2,505,039 2,505,039 Mortgage-backed securities 49,639 49,839 49,839 Corporate securities 255,606 243,372 243,372 Collateralized loan obligations 50,710 50,548 50,548 Other asset-backed securities 8,732 8,698 8,698 Total fixed maturity securities 2,804,275 2,880,003 2,880,003 Equity securities: Common stock 275,479 280,263 280,263 Non-redeemable preferred stock 25,161 24,668 24,668 Private equity funds 12,888 10,431 10,431 Total equity securities 313,528 315,362 315,362 Short-term investments 185,353 185,277 185,277 Total investments $ 3,303,156 $ 3,380,642 $ 3,380,642 |
Condensed Financial Information
Condensed Financial Information of Registrant | 12 Months Ended |
Dec. 31, 2016 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Condensed Financial Information of Registrant | MERCURY GENERAL CORPORATION CONDENSED FINANCIAL INFORMATION OF REGISTRANT BALANCE SHEETS December 31, 2016 2015 (Amounts in thousands) ASSETS Investments, at fair value: Fixed maturity securities (amortized cost $1,609; $557) $ 1,605 $ 571 Equity securities (cost $113,943; $131,217) 122,717 127,572 Short-term investments (cost $629; $1,144) 629 1,144 Investment in subsidiaries 1,810,663 1,819,426 Total investments 1,935,614 1,948,713 Cash 11,786 20,139 Accrued investment income 189 208 Amounts receivable from affiliates 226 220 Current income taxes — 8,894 Deferred income taxes 2,702 10,524 Income tax receivable from affiliates 35,237 5,917 Other assets 414 2,981 Total assets $ 1,986,168 $ 1,997,596 LIABILITIES AND SHAREHOLDERS’ EQUITY Notes payable $ 180,000 $ 150,000 Accounts payable and accrued expenses 348 — Amounts payable to affiliates 36 25 Income tax payable to affiliates 39,539 26,439 Current income taxes 10,200 — Other liabilities 3,643 247 Total liabilities 233,766 176,711 Commitments and contingencies Shareholders’ equity: Common stock 95,529 90,985 Additional paid-in capital — 8,870 Retained earnings 1,656,873 1,721,030 Total shareholders’ equity 1,752,402 1,820,885 Total liabilities and shareholders’ equity $ 1,986,168 $ 1,997,596 SCHEDULE II, Continued MERCURY GENERAL CORPORATION CONDENSED FINANCIAL INFORMATION OF REGISTRANT STATEMENTS OF OPERATIONS Year Ended December 31, 2016 2015 2014 (Amounts in thousands) Revenues: Net investment income $ 4,032 $ 4,314 $ 4,478 Net realized investment gains (losses) 6,062 (7,026 ) (9,428 ) Other 17 — — Total revenues 10,111 (2,712 ) (4,950 ) Expenses: Other operating expenses 2,673 7,526 5,971 Interest 2,690 2,127 1,746 Total expenses 5,363 9,653 7,717 Income (loss) before income taxes and equity in net income of subsidiaries 4,748 (12,365 ) (12,667 ) Income tax expense (benefit) 8,514 (4,708 ) (100 ) Loss before equity in net income of subsidiaries (3,766 ) (7,657 ) (12,567 ) Equity in net income of subsidiaries 73,864 82,136 190,516 Net income $ 70,098 $ 74,479 $ 177,949 SCHEDULE II, Continued MERCURY GENERAL CORPORATION CONDENSED FINANCIAL INFORMATION OF REGISTRANT STATEMENTS OF CASH FLOWS Year Ended December 31, 2016 2015 2014 (Amounts in thousands) Cash flows from operating activities: Net cash provided by (used in) operating activities $ 526 $ 548 $ (3,434 ) Cash flows from investing activities: Capital contribution to subsidiaries (30,125 ) (90,125 ) (30,125 ) Distributions received from special purpose entities 4,898 8,883 6,756 Dividends received from subsidiaries 110,800 133,000 225,000 Purchases of fixed maturity securities available for sale in nature (1,060 ) (571 ) — Equity securities available for sale in nature Purchases (64,807 ) (146,236 ) (254,572 ) Sales 73,942 192,005 90,422 (Decrease) in payable for securities, net — — (2,489 ) Net decrease in short-term investments 515 8,612 1,346 Business acquisition — (6,000 ) Other, net 1,614 1,945 2,191 Net cash provided by investing activities 95,777 101,513 38,529 Cash flows from financing activities: Dividends paid to shareholders (137,201 ) (136,386 ) (135,496 ) Excess tax benefit from exercise of stock options 913 27 148 Proceeds from stock options exercised 1,632 2,111 6,247 Proceeds from bank loan 30,000 — 100,000 Net cash used in financing activities (104,656 ) (134,248 ) (29,101 ) Net (decrease) increase in cash (8,353 ) (32,187 ) 5,994 Cash: Beginning of year 20,139 52,326 46,332 End of year $ 11,786 $ 20,139 $ 52,326 SUPPLEMENTAL CASH FLOW DISCLOSURE Interest paid $ 2,397 $ 2,153 $ 1,757 Income taxes (refunded) paid $ (339 ) $ 1,807 $ 2,112 The accompanying condensed financial information should be read in conjunction with the Consolidated Financial Statements and Notes to Consolidated Financial Statements included in this report. Distributions received from Special Purpose Entities On February 13, 2014, Fannette Funding LLC ("FFL"), a special purpose investment vehicle, formed by and consolidated into the Company, 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 on the outstanding notional amount of the underlying obligations. 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 Company paid interest equal to LIBOR plus 145 basis points on approximately $108 million and $95 million of underlying obligations as of December 31, 2016 and 2015 , respectively. The agreement had an initial term of one year , subject to annual renewal. In January 2017, the agreement was renewed for an additional year expiring February 17, 2018, and the interest rate was changed to LIBOR plus 128 basis points. On August 9, 2013, Animas Funding LLC ("AFL"), a special purpose investment vehicle, formed and consolidated by the Company, entered into a three -year total return swap agreement with Citibank, which has been renewed for an additional one-year term through February 17, 2018. Under the total return swap agreement, AFL receives the income equivalent on underlying obligations due to Citibank and pays to Citibank interest on the outstanding notional amount of the underlying obligations. 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. The Company paid interest equal to LIBOR plus 135 basis points on approximately $152 million and $124 million of underlying obligations as of December 31, 2016 and 2015, respectively. The agreement was amended in January 2017 and the interest rate was changed to LIBOR plus 128 basis points. Distributions of $4.9 million and $8.9 million were received in 2016 and 2015 , respectively, from these special purpose entities. Dividends received from Subsidiaries Dividends of $110,800,000 , $133,000,000 and $225,000,000 were received by Mercury General from its 100% owned insurance subsidiaries in 2016 , 2015 and 2014 , respectively, and are recorded as a reduction to investment in subsidiaries. Capitalization of Insurance Subsidiaries Mercury General made capital contributions to its insurance subsidiaries of $ 30,125,000 , $90,125,000 and $30,125,000 in 2016 , 2015 and 2014 , respectively. Business Acquisition Pursuant to an October 22, 2014 Stock Purchase Agreement, Mercury General purchased all the issued and outstanding shares of Workmen’s Auto Insurance Company ("WAIC"), a California domiciled property and casualty insurance company, on January 2, 2015. WAIC is a Los Angeles-based non-standard, private passenger automobile insurance company that operates predominantly in California. Mercury General intends to use the WAIC non-standard automobile product to complement its preferred and standard product offerings. The Company paid $8 million in cash for the shares of WAIC, of which $2 million has been held 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 the evaluation performed at the acquisition date and at December 31, 2015, of the claims reserves for WAIC for losses and loss adjustment expenses incurred on or prior to June 30, 2014, the Company estimated that it would recover the $2 million held in escrow and, therefore, the Company deducted it from cash consideration to arrive at the fair value of total consideration transferred. The Company recovered the $2 million held in escrow in 2016. In accordance with regulatory approval requirements, the Company made a $15 million cash capital contribution to WAIC on January 12, 2015. Notes Payable On July 2, 2013, Mercury General entered into an unsecured $200 million five -year revolving credit facility. Effective December 3, 2014, the Company expanded the borrowing capacity from $200 million to $250 million . Total borrowings were $180 million under the credit facility as of December 31, 2016 . The interest rate was approximately 1.73% at December 31, 2016 . Commitments and Contingencies The borrowings by MCC, a subsidiary, under the $120 million credit facility and $20 million bank loan are secured by approximately $175 million of municipal bonds owned by MCC, at fair value, held as collateral. The total borrowings of $140 million are guaranteed by Mercury General. Federal Income Taxes The Company files a consolidated federal income tax return for the following entities: Mercury Casualty Company Mercury County Mutual Insurance Company Mercury Insurance Company Mercury Insurance Company of Florida California Automobile Insurance Company Mercury Indemnity Company of America California General Underwriters Insurance Company, Inc. Mercury Select Management Company, Inc. Mercury Insurance Company of Illinois Mercury Insurance Services LLC Mercury Insurance Company of Georgia AIS Management LLC Mercury Indemnity Company of Georgia Auto Insurance Specialists LLC Mercury National Insurance Company PoliSeek AIS Insurance Solutions, Inc. American Mercury Insurance Company Animas Funding LLC American Mercury Lloyds Insurance Company Fannette Funding LLC Workmen's Auto Insurance Company The method of allocation between the companies is subject to an agreement approved by the Board of Directors. Allocation is based upon separate return calculations with current credit for net losses incurred by the insurance subsidiaries to the extent it can be used in the current consolidated return. |
Supplemental Reinsurance Premiu
Supplemental Reinsurance Premiums | 12 Months Ended |
Dec. 31, 2016 | |
Supplementary Insurance Information [Abstract] | |
Supplemental Reinsurance Premiums | SCHEDULE IV MERCURY GENERAL CORPORATION AND SUBSIDIARIES REINSURANCE THREE YEARS ENDED DECEMBER 31, Property and Liability Insurance Earned Premiums 2016 2015 2014 (Amounts in thousands) Direct amounts $ 3,146,864 $ 2,970,424 $ 2,806,889 Ceded to other companies (15,846 ) (12,964 ) (11,185 ) Assumed 755 437 491 Net amounts $ 3,131,773 $ 2,957,897 $ 2,796,195 |
Summary of Significant Accoun31
Summary of Significant Accounting Policies (Policy) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Consolidation and Basis of Presentation | The consolidated financial statements include the accounts of Mercury General Corporation and its subsidiaries: Insurance Companies Mercury Casualty Company ("MCC") Mercury National Insurance Company Mercury Insurance Company ("MIC") American Mercury Insurance Company California Automobile Insurance Company ("CAIC") American Mercury Lloyds Insurance Company (1) California General Underwriters Insurance Company, Inc. Mercury County Mutual Insurance Company (2) Mercury Insurance Company of Illinois Mercury Insurance Company of Florida Mercury Insurance Company of Georgia Mercury Indemnity Company of America Mercury Indemnity Company of Georgia Workmen's Auto Insurance Company ("WAIC") (4) Non-Insurance Companies Mercury Select Management Company, Inc. AIS Management LLC Mercury Insurance Services LLC Auto Insurance Specialists LLC Animas Funding LLC ("AFL") (3) PoliSeek AIS Insurance Solutions, Inc. Fannette Funding LLC ("FFL") (3) __________ (1) American Mercury Lloyds Insurance Company is not owned but is controlled by the Company through its attorney-in-fact, Mercury Select Management Company, Inc. (2) Mercury County Mutual Insurance Company is not owned but is controlled by the Company through a management contract. (3) Special purpose investment vehicle. (4) California domiciled insurance company acquired in 2015. See Note 20. Acquisition. The 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. |
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 revenue 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 consolidated financial statements relate to reserves for losses and loss adjustment expenses. Actual results could differ from those estimates. |
Investments | Fixed maturity securities include debt securities, which may have fixed or variable principal payment schedules, may be held for indefinite periods of time, and may be used as a part of the Company’s asset/liability strategy or sold in response to changes in interest rates, anticipated prepayments, risk/reward characteristics, liquidity needs, tax planning considerations, or other economic factors. Premiums and discounts on fixed maturities are amortized using first call date and are adjusted for anticipated prepayments. Premiums and discounts on mortgage-backed securities are adjusted for anticipated prepayment using the retrospective method, with the exception of some beneficial interests in securitized financial assets, which are accounted for using the prospective method. Equity securities consist of non-redeemable preferred stocks, common stocks on which dividend income is partially tax-sheltered by the 70% corporate dividend received deduction, and an interest in private equity funds. Short-term investments include money market accounts, options, and short-term bonds that are highly rated short duration securities and redeemable within one year. |
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. |
Fixed Assets | Fixed assets are stated at historical cost less accumulated depreciation and amortization. The useful life for buildings is 30 to 40 years . Furniture, equipment, and purchased software are depreciated on a combination of straight-line and accelerated methods over 3 to 7 years . The Company has capitalized certain consulting costs, payroll, and payroll-related costs for employees related to computer software developed for internal use, which are amortized on a straight-line method over the estimated useful life of the software, generally not exceeding 7 years . In accordance with applicable accounting standards, capitalization ceases no later than the point at which a computer software project is substantially complete and ready for its intended use. Leasehold improvements are amortized over the shorter of the useful life of the assets or the life of the associated lease. The Company periodically assesses long-lived assets or asset groups including building and equipment, for recoverability when events or changes in circumstances indicate that their carrying amounts may not be recoverable. If the Company identifies an indicator of impairment, the Company assesses recoverability by comparing the carrying amount of the asset to the sum of the undiscounted cash flows expected to result from the use and the eventual disposal of the asset. An impairment loss is recognized when the carrying amount is not recoverable and is measured as the excess of carrying value over fair value. |
Goodwill And Other Intangible Assets | Goodwill and other intangible assets arise as a result of business acquisitions and consist of the excess of the cost of the acquisitions over the tangible and intangible assets acquired and liabilities assumed and identifiable intangible assets acquired. Identifiable intangible assets consist of the value of customer relationships, trade names, software and technology, and favorable leases, which are all subject to amortization, and an insurance license which is not subject to amortization. The Company evaluates goodwill and other intangible assets for impairment annually or whenever events or changes in circumstances indicate that it is more likely than not that the carrying amount of goodwill and other intangible assets may exceed their implied fair values. The Company qualitatively determines whether, more likely than not, the fair value exceeds the carrying amount of a reporting unit. There are numerous assumptions and estimates underlying the qualitative assessments including future earnings, long-term strategies, and the Company’s annual planning and forecasting process. If these planned initiatives do not accomplish the targeted objectives, the assumptions and estimates underlying the qualitative assessments could be adversely affected and have a material effect upon the Company’s financial condition and results of operations. |
Premium Revenue Recognition | Premium revenue is recognized on a pro-rata basis over the terms of the policies in proportion to the amount of insurance protection provided. Premium revenue includes installment and other fees for services which are recognized in the periods in which the services are rendered. Unearned premiums represent the portion of the written premium related to the unexpired policy term. Unearned premiums are predominantly computed monthly on a pro-rata basis and are stated gross of reinsurance deductions, with the reinsurance deduction recorded in other receivables. |
Losses And Loss Adjustment Expenses | Unpaid losses and loss adjustment expenses are determined in amounts estimated to cover incurred losses and loss adjustment expenses and established based upon the Company’s assessment of claims pending and the development of prior years’ loss liabilities. These amounts include liabilities based upon individual case estimates for reported losses and loss adjustment expenses and estimates of such amounts that are incurred but not reported. Changes in the estimated liability are charged or credited to operations as the losses and loss adjustment expenses are re-estimated. The liability is stated net of anticipated salvage and subrogation recoveries. The amount of reinsurance recoverable is included in other receivables. Estimating loss reserves is a difficult process as many factors can ultimately affect the final settlement of a claim and, therefore, the loss reserve that is required. A key assumption in estimating loss reserves is the degree to which the historical data used to analyze reserves will be predictive of ultimate claim costs on incurred claims. Changes in the regulatory and legal environments, results of litigation, medical costs, the cost of repair materials, and labor rates, among other factors, can impact this assumption. In addition, time can be a critical part of reserving determinations since the longer the span between the incidence of a loss and the payment or settlement of a claim, the more variable the ultimate settlement amount could be. Accordingly, short-tail claims, such as property damage claims, tend to be more reasonably predictable than long-tail liability claims, such as those involving the Company’s bodily injury (BI) coverages. Management believes that the liability for losses and loss adjustment expenses is adequate to cover the ultimate net cost of losses and loss adjustment expenses incurred to date. However, since the provisions for loss reserves are necessarily based upon estimates, the ultimate liability may be more or less than such provisions. The Company analyzes loss reserves quarterly primarily using the incurred loss, paid loss, average severity coupled with the claim count development methods, and the generalized linear model ("GLM") described below. When deciding among methods to use, the Company evaluates the credibility of each method based on the maturity of the data available and the claims settlement practices for each particular line of insurance business or coverage within a line of insurance business. The Company may also evaluate qualitative factors such as known changes in laws or legal ruling that could affect claims handling or other external environmental factors or internal factors that could affect the settlement of claims. When establishing the loss reserve, the Company will generally analyze the results from all of the methods used rather than relying on a single method. While these methods are designed to determine the ultimate losses on claims under the Company’s policies, there is inherent uncertainty in all actuarial models since they use historical data to project outcomes. The Company believes that the techniques it uses provide a reasonable basis in estimating loss reserves. • The incurred loss method analyzes historical incurred case loss (case reserves plus paid losses) development to estimate ultimate losses. The Company applies development factors against current case incurred losses by accident period to calculate ultimate expected losses. The Company believes that the incurred loss method provides a reasonable basis for evaluating ultimate losses, particularly in the Company’s larger, more established lines of insurance business which have a long operating history. • The paid loss method analyzes historical payment patterns to estimate the amount of losses yet to be paid. • The average severity method analyzes historical loss payments and/or incurred losses divided by closed claims and/or total claims to calculate an estimated average cost per claim. From this, the expected ultimate average cost per claim can be estimated. The average severity method coupled with the claim count development method provides meaningful information regarding inflation and frequency trends that the Company believes is useful in establishing loss reserves. The claim count development method analyzes historical claim count development to estimate future incurred claim count development for current claims. The Company applies these development factors against current claim counts by accident period to calculate ultimate expected claim counts. • The GLM determines an average severity for each percentile of claims that have been closed as a percentage of estimated ultimate claims. The average severities are applied to open claims to estimate the amount of losses yet to be paid. The GLM utilizes operational time, determined as a percentile of claims closed rather than a finite calendar period, which neutralizes the effect of changes in the timing of claims handling. The Company analyzes catastrophe losses separately from non-catastrophe losses. For catastrophe losses, the Company generally determines claim counts based on claims reported and development expectations from previous catastrophes and applies an average expected loss per claim based on loss reserves established by adjusters and average losses on previous similar catastrophes. |
Derivative Financial Instruments | The Company accounts for all derivative instruments, other than those that meet the normal purchases and sales exception, as either an asset or liability, measured at fair value, which is based on information obtained from independent parties. In addition, changes in fair value are recognized in earnings unless specific hedge accounting criteria are met. The Company’s derivative instruments include total return swaps and options sold. |
Earnings per Share | Basic earnings per share excludes dilution and reflects net income divided by the weighted average shares of common stock outstanding during the periods presented. Diluted earnings per share is based on the weighted average shares of common stock and potential dilutive securities outstanding during the periods presented. |
Income Taxes | 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. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates or laws is recognized in earnings in the period that includes the enactment date. At December 31, 2016 , 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. |
Reinsurance | Liabilities for unearned premiums and unpaid losses are stated in the accompanying consolidated financial statements before deductions for ceded reinsurance. The ceded amounts are immaterial and are carried in other receivables. Earned premiums are stated net of deductions for ceded reinsurance. The Insurance Companies, as primary insurers, are required to pay losses to the extent reinsurers are unable to discharge their obligations under the reinsurance agreements. |
Share-Based Compensation | Share-based compensation expense for all stock options 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 fair value of each restricted stock unit grant was determined based on the market price on the grant date for awards classified as equity and on each reporting date for awards classified as a liability. Compensation cost is recognized based on management’s best estimate of the performance goals that will be achieved. If such goals are not met, no compensation cost is recognized and any recognized compensation cost would be reversed. |
Recently Issued Accounting Standards | Recently Issued Accounting Standards In October 2016, the FASB issued Accounting Standards Update ("ASU") 2016-16, " Income Taxes (Topic 740), Intra-Entity Transfers of Assets Other Than Inventory. " ASU 2016-16 requires entities to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. Current GAAP prohibits the recognition of current and deferred income taxes for an intra-entity asset transfer until the asset has been sold to an outside party. ASU 2016-16 will be effective for the Company beginning January 1, 2018. The Company is evaluating the impact that ASU 2016-16 will have on its consolidated financial statements and related disclosures. In August 2016, the FASB issued ASU 2016-15, " Classification of Certain Cash Receipts and Cash Payments (Topic 230). " The new guidance is intended to reduce diversity in how certain transactions are classified in the consolidated statement of cash flows. ASU 2016-15 will be effective for the Company beginning January 1, 2018. The Company is evaluating the impact that ASU 2016-15 will have on its consolidated financial statements and related disclosures. In June 2016, the FASB issued ASU 2016-13, " Financial Instruments - Credit Losses (Topic 326). " The amendments in this ASU replace the "incurred loss" methodology for recognizing credit losses with a methodology that reflects expected credit losses and requires consideration of a broader range of information including past events, current conditions and reasonable and supportable forecasts that affect the collectibility of reported amounts of financial assets that are not accounted for at fair value through net income, such as loans, certain debt securities, trade receivables, net investment in leases, off-balance sheet credit exposures and reinsurance receivables. Under the current GAAP incurred loss methodology, recognition of the full amount of credit losses is generally delayed until the loss is probable of incurring. Current GAAP restricts the ability to record credit losses that are expected, but do not yet meet the probability threshold. ASU 2016-13 becomes effective for the Company beginning with the first quarter ending March 31, 2020. The Company is evaluating the impact that ASU 2016-13 will have on its consolidated financial statements and related disclosures. In March 2016, the FASB issued ASU 2016-09, " Compensation - Stock Compensation (Topic 718) ," which simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. ASU 2016-09 is effective for the Company with the quarter ending March 31, 2017. The Company is evaluating the impact that ASU 2016-09 will have on its consolidated financial statements and related disclosures. In February 2016, the FASB issued ASU 2016-02, " Leases (Topic 842) ," which supersedes the guidance in Accounting Standards Codification ("ASC") 840, "Leases." ASU 2016-02 requires a lessee to recognize lease assets and lease liabilities resulting from all leases. ASU 2016-02 retains the distinction between a finance lease and an operating lease. Lessor accounting is largely unchanged from ASC 840. ASU 2016-02 becomes effective for the Company beginning January 1, 2019. However, in transition, the Company will be required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The Company is evaluating the effect that ASU 2016-02 will have on its consolidated financial statements and related disclosures. In January 2016, the FASB issued ASU 2016-01, " Financial Instruments-Overall (Subtopic 825-10) , Recognition and Measurement of Financial Assets and Financial Liabilities. " The amendments in this ASU address certain aspects of recognition, measurement, presentation and disclosure of financial instruments. ASU 2016-01: (1) requires equity investments (except those accounted for under the equity method or those that result in the consolidation of the investee) to be measured at fair value with changes in the fair value recognized in net income; (2) simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment; (3) eliminates the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet; (4) requires the use of the exit price notion when measuring the fair value of financial instruments for disclosure purposes; (5) requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset on the balance sheet or the notes to the financial statements; and (6) clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with the entity’s other deferred tax assets. ASU 2016-01 is effective for the Company beginning January 1, 2018. The Company does not anticipate that ASU 2016-01 will have a material impact on its consolidated financial statements and related disclosures. In May 2015, the FASB issued ASU 2015-09, " Financial Services -Insurance (Topic 944), Disclosures About Short-Duration Contracts ." ASU 2015-09 requires insurance entities to provide additional disclosures related to claims liabilities. The additional disclosure requirements for the annual reports include: (1) claims development information by accident year, on a net of reinsurance basis, for the number of years for which claims incurred remain outstanding but not to exceed the most recent 10 years, and for the most recent reporting period presented, an insurer also needs to disclose the amount of total net outstanding claims for all accident years included in the claims development tables; (2) a reconciliation of claims development information and the aggregate carrying amount of the liability for unpaid claims and claim adjustment expenses; and (3) information about the claims frequency and the amount of the incurred-but-not-reported liabilities for each accident year presented. In addition, a description of the methodology used to determine the amounts disclosed is required. The roll forward of the liability for unpaid claims and claims adjustment expenses, currently required only for annual periods, will also be required for interim periods. ASU 2015-09 became effective for the Company beginning with the annual period ended December 31, 2016, and quarter periods beginning with the first quarter of 2017. Although the adoption of this standard did not have a material impact on its consolidated financial statements, the Company expanded the nature and extent of its insurance contracts disclosures. In February 2015, the FASB issued ASU 2015-02, " Consolidation (Topic 810), Amendments to the Consolidation Analysis " affecting the consolidation evaluation of limited partnerships and similar entities, fees paid to a decision maker or a service provider as a variable interest, and variable interests in a variable interest entity held by related parties of the reporting entities. The amendments became effective for the Company on January 1, 2016. As in previous GAAP, consolidation analysis under ASU 2015-02 contains two primary consolidation models: the voting control model and the variable interest ("VIE") model. An entity being evaluated for consolidation is required to first be subjected to the requirements of the VIE model. Only if the entity fails to meet the requirements to be consolidated under the VIE model, would the voting control consolidation model apply. The adoption of ASU 2015-02 did not have an impact on the Company's consolidated financial statements and related disclosures. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). " ASU 2014-09 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 in the amount to which the entity expects to be entitled. In August 2015, the FASB issued ASU 2015-14, "Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date," which deferred the effective date of ASU 2014-09 for the Company to January 1, 2018. Through the first half of 2016, the FASB issued additional ASUs on Topic 606 that do not change the core principle of the guidance in ASU 2014-09 but merely clarify certain aspects of it. The additional ASUs also become effective for the Company beginning January 1, 2018. As the accounting for insurance contracts is outside of the scope of ASU 2014-09, the Company does not expect the adoption of this ASU to have a material impact on its financial position, results of operations, or cash flows. |
Fair Value of Financial Instr32
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Financial Instruments, Owned, at Fair Value [Abstract] | |
Estimated Fair Values of Financial Instruments | The following table presents estimated fair values of financial instruments: December 31, 2016 2015 (Amounts in thousands) Assets Investments $ 3,547,560 $ 3,380,642 Total return swaps 667 — Liabilities Total return swaps $ 765 $ 11,525 Options sold 20 260 Secured notes 140,000 140,000 Unsecured note 180,000 150,000 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Investments [Abstract] | |
Gains And Losses Due To Changes In Fair Value | The following table presents (losses) gains due to changes in fair value of investments that are measured at fair value pursuant to application of the fair value option: Year Ended December 31, 2016 2015 2014 (Amounts in thousands) Fixed maturity securities $ (56,584 ) $ (39,304 ) $ 77,208 Equity securities 23,722 (22,988 ) (32,922 ) Short-term investments 57 561 (527 ) Total $ (32,805 ) $ (61,731 ) $ 43,759 |
Gross Gains And Losses Realized On Sales Of Investments | ross gains (losses) realized on the sales of investments: Year Ended December 31, 2016 2015 2014 (Amounts in thousands) Gross Realized Gains Gross Realized Losses Net Gross Realized Gains Gross Realized Losses Net Gross Realized Gains Gross Realized Losses Net Fixed maturity securities $ 3,327 $ (19,133 ) $ (15,806 ) $ 631 $ (495 ) $ 136 $ 7,015 $ (9,734 ) $ (2,719 ) Equity securities 29,446 (29,945 ) (499 ) 41,305 (58,764 ) (17,459 ) 59,342 (17,705 ) 41,637 Short-term investments 6 (529 ) (523 ) — (1,396 ) (1,396 ) — (1,943 ) (1,943 ) |
Estimated Fair Values Of Investments | The following table presents the estimated fair values of the Company's fixed maturity securities at December 31, 2016 by contractual maturity. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Estimated Fair Value (Amounts in thousands) Fixed maturity securities: Due in one year or less $ 381,189 Due after one year through five years 515,049 Due after five years through ten years 316,173 Due after ten years 1,602,142 Total $ 2,814,553 |
Investment Income | The following table presents a summary of net investment income: Year Ended December 31, 2016 2015 2014 (Amounts in thousands) Fixed maturity securities $ 104,111 $ 108,122 $ 104,946 Equity securities 14,629 14,630 17,313 Short-term investments 8,936 9,033 8,561 Total investment income $ 127,676 $ 131,785 $ 130,820 Less: investment expense (5,805 ) (5,486 ) (5,097 ) Net investment income $ 121,871 $ 126,299 $ 125,723 |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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, and indicate the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair values: December 31, 2016 Level 1 Level 2 Level 3 Total (Amounts in thousands) Assets Fixed maturity securities: U.S. government bonds and agencies $ 12,275 $ — $ — $ 12,275 Municipal securities — 2,449,292 — 2,449,292 Mortgage-backed securities — 39,777 — 39,777 Corporate securities — 189,688 — 189,688 Collateralized loan obligations — 86,525 — 86,525 Other asset-backed securities — 36,996 — 36,996 Equity securities: Common stock 316,450 — — 316,450 Non-redeemable preferred stock — 31,809 — 31,809 Private equity funds — — 9,068 9,068 Short-term investments: Short-term bonds 70,393 20,233 — 90,626 Money market instruments 285,054 — — 285,054 Other assets: Total return swaps — 667 — 667 Total assets at fair value $ 684,172 $ 2,854,987 $ 9,068 $ 3,548,227 Liabilities Notes payable: Secured notes $ — $ 140,000 $ — $ 140,000 Unsecured notes — 180,000 — 180,000 Other liabilities: Total return swaps — 765 — 765 Options sold 20 — — 20 Total liabilities at fair value $ 20 $ 320,765 $ — $ 320,785 December 31, 2015 Level 1 Level 2 Level 3 Total (Amounts in thousands) Assets Fixed maturity securities: U.S. government bonds and agencies $ 22,507 $ — $ — $ 22,507 Municipal securities — 2,505,040 — 2,505,040 Mortgage-backed securities — 49,838 — 49,838 Corporate securities — 243,372 — 243,372 Collateralized debt obligations — 50,548 — 50,548 Other asset-backed securities — 8,698 — 8,698 Equity securities: Common stock 280,263 — — 280,263 Non-redeemable preferred stock — 24,668 — 24,668 Private equity funds — — 10,431 10,431 Short-term investments: Short-term bonds 69,991 9,850 — 79,841 Money market instruments 105,436 — — 105,436 Total assets at fair value $ 478,197 $ 2,892,014 $ 10,431 $ 3,380,642 Liabilities Notes payable: Secured notes $ — $ 140,000 $ — $ 140,000 Unsecured notes — 150,000 — 150,000 Other liabilities: Total return swaps — 11,525 — 11,525 Options sold 260 — — 260 Total liabilities at fair value $ 260 $ 301,525 $ — $ 301,785 |
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: Private Equity Funds Year Ended December 31, 2016 2015 (Amounts in thousands) Beginning balance $ 10,431 $ 11,719 Realized losses included in earnings (1,363 ) (4,175 ) Reclassification from other assets — 2,911 Sales — — Settlements — (24 ) Ending balance $ 9,068 $ 10,431 The amount of total losses for the period included in earnings attributable to assets still held at December 31 $ (1,363 ) $ (5,385 ) |
Fixed Assets (Tables)
Fixed Assets (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Schedule Of Fixed Assets | The following table presents the components of fixed assets: December 31, 2016 2015 (Amounts in thousands) Land $ 26,770 $ 26,770 Buildings and improvements 134,952 132,529 Furniture and equipment 114,156 109,802 Capitalized software 190,092 178,113 Leasehold improvements 9,369 9,109 475,339 456,323 Less accumulated depreciation and amortization (319,429 ) (299,192 ) Fixed assets, net $ 155,910 $ 157,131 |
Deferred Policy Acquisition C36
Deferred Policy Acquisition Costs (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Deferred Policy Acquisition Costs Disclosures [Abstract] | |
Schedule Of Deferred Policy Acquisition Costs | Deferred policy acquisition costs were as follows: December 31, 2016 2015 2014 (Amounts in thousands) Balance, beginning of year $ 201,762 $ 197,202 $ 194,466 Policy acquisition costs deferred 561,610 543,791 528,944 Amortization (562,546 ) (539,231 ) (526,208 ) Balance, end of year $ 200,826 $ 201,762 $ 197,202 |
Notes Payable (Tables)
Notes Payable (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Notes Payable [Abstract] | |
Schedule of Long-term Debt Instruments | Notes payable consists of the following: December 31, Lender Interest Rate Expiration 2016 2015 (Amounts in thousands) Secured credit facility Bank of America LIBOR plus 40 basis points December 3, 2018 (2) $ 120,000 $ 120,000 Secured loan Union Bank LIBOR plus 40 basis points December 3, 2017 20,000 20,000 Unsecured credit facility Bank of America and Union Bank (1) December 3, 2019 180,000 150,000 Total $ 320,000 $ 290,000 __________ (1) On July 2, 2013, the Company entered into an unsecured $200 million five -year revolving credit facility, which later was expanded to a borrowing capacity of $250 million. The interest rate on borrowings under the credit facility is based on the Company's debt to total capital ratio and ranges from LIBOR plus 112.5 basis points when the ratio is under 15% to LIBOR plus 162.5 basis points when the ratio is above 25% . Commitment fees for the undrawn portions of the credit facility range from 12.5 basis points when the ratio is under 15% to 22.5 basis points when the ratio is above 25% . Debt to capital ratio is expressed as a percentage of (a) consolidated debt to (b) consolidated shareholders' equity plus consolidated debt. In 2016, the interest rate was LIBOR plus 112.5 basis points on the $180 million of borrowings and 12.5 basis points on the undrawn portion of the credit facility. The interest rate was approximately 1.73% at December 31, 2016. |
Schedule of Maturities of Long-term Debt | The aggregated maturities of notes payable are as follows: Maturity (Amounts in thousands) 2017 $ 20,000 2018 120,000 2019 180,000 |
Derivative Financial Instrume38
Derivative Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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 (losses) in the consolidated statements of operations: Asset Derivatives Liability Derivatives December 31, 2016 December 31, 2015 December 31, 2016 December 31, 2015 (Amounts in thousands) Total return swaps - Other assets $ 667 $ — $ — $ — Options sold - Other liabilities — — 20 260 Total return swaps - Other liabilities — — 765 11,525 Total derivatives $ 667 $ — $ 785 $ 11,785 |
Schedule Of Derivative Gains And Losses In The Consolidated Statements Of Operations | Gains (Losses)Recognized in Income Year Ended December 31, 2016 2015 2014 (Amounts in thousands) Total return swaps - Net realized investment gains (losses) $ 11,533 $ (6,438 ) $ (2,969 ) Options sold - Net realized investment gains 3,846 3,081 3,419 Total $ 15,379 $ (3,357 ) $ 450 |
Goodwill and Other Intangible39
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule Of Components Of Other Intangible Assets | The following table presents the components of other intangible assets: Gross Carrying Amount Accumulated Amortization Net Carrying Amount Useful Lives (Amounts in thousands) (in years) As of December 31, 2016: Customer relationships $ 52,430 $ (39,332 ) $ 13,098 11 Trade names 15,400 (5,133 ) 10,267 24 Technology 4,300 (3,440 ) 860 10 Insurance license 1,400 — 1,400 Indefinite Total intangible assets, net $ 73,530 $ (47,905 ) $ 25,625 As of December 31, 2015: Customer relationships $ 52,430 $ (34,327 ) $ 18,103 11 Trade names 15,400 (4,491 ) 10,909 24 Technology 4,300 (3,010 ) 1,290 10 Insurance license 1,400 — 1,400 Indefinite Total intangible assets, net $ 73,530 $ (41,828 ) $ 31,702 |
Schedule Of Estimated Future Amortization Expense Related To Intangible Assets | The following table presents the estimated future amortization expense related to other intangible assets as of December 31, 2016 : Year Ending December 31, Amortization Expense (Amounts in thousands) 2017 $ 5,349 2018 5,335 2019 4,906 2020 758 2021 738 Thereafter 7,139 Total $ 24,225 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Components of Income Tax Expense (Benefit), Continuing Operations [Abstract] | |
Components Of Income Tax Expense | The income tax (benefit) expense consisted of the following components: Year Ended December 31, 2016 2015 2014 (Amounts in thousands) Federal Current $ 17,444 $ 21,942 $ 44,469 Deferred (21,947 ) (25,594 ) 20,444 $ (4,503 ) $ (3,652 ) $ 64,913 State Current $ 2,239 $ 943 $ 4,421 Deferred (56 ) (1,203 ) 142 $ 2,183 $ (260 ) $ 4,563 Total Current $ 19,683 $ 22,885 $ 48,890 Deferred (22,003 ) (26,797 ) 20,586 Total $ (2,320 ) $ (3,912 ) $ 69,476 |
Reconciliation Of Income Taxes | The income tax (benefit) expense reflected in the consolidated statements of operations is reconciled to the federal income tax (benefit) expense on income before income taxes based on a statutory rate of 35% as shown in the table below: Year Ended December 31, 2016 2015 2014 (Amounts in thousands) Computed tax expense at 35% $ 24,753 $ 24,699 $ 86,598 Tax-exempt interest income (26,197 ) (26,993 ) (27,839 ) Dividends received deduction (2,303 ) (1,613 ) (2,027 ) State tax expense 1,907 (287 ) 3,872 Nondeductible expenses 303 575 9,900 Other, net (783 ) (293 ) (1,028 ) Income tax (benefit) expense $ (2,320 ) $ (3,912 ) $ 69,476 |
Deferred Tax Assets And Liabilities | The following table presents the significant components of the Company’s net deferred tax assets and liabilities: December 31, 2016 2015 (Amounts in thousands) Deferred tax assets: 20% of net unearned premiums $ 77,104 $ 75,406 Discounting of loss reserves and salvage and subrogation recoverable for tax purposes 9,864 9,518 Write-down of impaired investments 726 857 Tax credit carryforward 47,238 36,349 Expense accruals 11,090 11,264 Other deferred tax assets 8,828 9,596 Total gross deferred tax assets 154,850 142,990 Deferred tax liabilities: Deferred policy acquisition costs (70,289 ) (70,617 ) Tax liability on net unrealized gain on securities carried at fair value (15,612 ) (23,095 ) Tax depreciation in excess of book depreciation (10,446 ) (10,742 ) Undistributed earnings of insurance subsidiaries (3,985 ) (4,022 ) Tax amortization in excess of book amortization (3,030 ) (2,514 ) Other deferred tax liabilities (6,211 ) (8,769 ) Total gross deferred tax liabilities (109,573 ) (119,759 ) Net deferred tax assets $ 45,277 $ 23,231 |
Summary Of Unrecognized Tax Benefits | The following table presents a reconciliation of the beginning and ending balances of unrecognized tax benefits: December 31, 2016 2015 (Amounts in thousands) Balance at January 1 $ 12,165 $ 12,612 Additions (reductions) based on tax positions related to: Current year 688 932 Prior years 101 (1,379 ) Additions (reductions) as a result of lapse of the applicable statute of limitations — — Balance at December 31 $ 12,954 $ 12,165 |
Losses And Loss Adjustment Ex41
Losses And Loss Adjustment Expense Reserves (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Insurance Loss Reserves [Abstract] | |
Activity In The Reserves For Losses And Loss Adjustment Expenses | The following table presents the activity in loss and loss adjustment expense reserves: Year Ended December 31, 2016 2015 2014 (Amounts in thousands) Gross reserves at January 1 $ 1,146,688 $ 1,091,797 $ 1,038,984 Less reinsurance recoverable (14,253 ) (14,192 ) (13,635 ) Net reserves at January 1 1,132,435 1,077,605 1,025,349 Acquisition of WAIC reserves — 18,677 — Incurred losses and loss adjustment expenses related to: Current year 2,269,769 2,132,837 1,989,315 Prior years 85,369 12,658 (3,193 ) Total incurred losses and loss adjustment expenses 2,355,138 2,145,495 1,986,122 Loss and loss adjustment expense payments related to: Current year 1,508,362 1,455,245 1,347,967 Prior years 702,124 654,097 585,899 Total payments 2,210,486 2,109,342 1,933,866 Net reserves at December 31 1,277,087 1,132,435 1,077,605 Reinsurance recoverable 13,161 14,253 14,192 Gross reserves at December 31 $ 1,290,248 $ 1,146,688 $ 1,091,797 |
Incurred and Paid Claims Development | The information about incurred and paid claims development for the years ended December 31, 2007 to 2015 is presented as unaudited supplementary information. Incurred Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance (Automobile Insurance) As of December 31, 2016 Total of Incurred But Not Reported Liabilities Plus Expected Development on Reported Claims Cumulative Number of Reported Claims Accident Year For the Years Ended December 31, 2007 (1) 2008 (1) 2009 (1) 2010 (1) 2011 (1) 2012 (1) 2013 (1) 2014 (1) 2015 (1) 2016 (Amounts in thousands) (Amounts in thousands) 2007 $ 1,591,217 $ 1,610,874 $ 1,614,648 $ 1,624,875 $ 1,633,606 $ 1,633,169 $ 1,634,127 $ 1,635,529 $ 1,636,379 $ 1,636,065 $ 52 230 2008 1,505,732 1,440,301 1,442,691 1,455,858 1,461,084 1,463,659 1,465,623 1,466,108 1,466,137 82 199 2009 1,372,833 1,349,025 1,361,116 1,361,652 1,365,551 1,371,779 1,372,694 1,372,259 166 186 2010 1,367,547 1,357,750 1,364,307 1,374,638 1,379,336 1,381,056 1,386,105 390 184 2011 1,343,919 1,367,000 1,380,557 1,388,363 1,393,878 1,398,518 4,069 181 2012 1,424,754 1,408,222 1,409,104 1,414,878 1,426,735 4,531 181 2013 1,448,567 1,431,058 1,447,881 1,458,421 10,873 185 2014 1,467,175 1,454,366 1,473,545 32,532 180 2015 1,551,105 1,588,443 90,010 169 2016 1,672,853 303,353 145 Total $ 14,879,081 __________ (1) The information for the years 2007 to 2015 is presented as unaudited supplemental information. Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance (Automobile Insurance) For the Years Ended December 31, Accident Year 2007 (1) 2008 (1) 2009 (1) 2010 (1) 2011 (1) 2012 (1) 2013 (1) 2014 (1) 2015 (1) 2016 (Amounts in thousands) 2007 $ 1,040,933 $ 1,365,854 $ 1,496,543 $ 1,581,001 $ 1,615,964 $ 1,628,413 $ 1,633,178 $ 1,634,888 $ 1,635,631 $ 1,636,204 2008 992,844 1,226,787 1,345,354 1,418,274 1,450,172 1,459,216 1,463,384 1,464,763 1,465,832 2009 913,340 1,137,807 1,260,424 1,326,439 1,355,210 1,363,526 1,370,564 1,371,956 2010 908,954 1,143,984 1,268,142 1,335,871 1,365,464 1,375,799 1,384,333 2011 926,983 1,152,459 1,277,808 1,347,082 1,378,920 1,391,101 2012 955,647 1,194,648 1,304,511 1,372,828 1,409,911 2013 974,445 1,217,906 1,340,724 1,413,999 2014 967,481 1,231,413 1,358,472 2015 1,040,253 1,336,223 2016 1,094,006 Total $ 13,862,037 All outstanding liabilities before 2007, net of reinsurance (212 ) Loss and allocated loss adjustment expense reserves, net of reinsurance $ 1,016,832 __________ (1) The information for the years 2007 to 2015 is presented as unaudited supplemental information. Incurred Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance (Homeowners' Insurance) As of December 31, 2016 Total of Incurred But Not Reported Liabilities Plus Expected Development on Reported Claims Cumulative Number of Reported Claims Accident Year For the Years Ended December 31, 2007 (1) 2008 (1) 2009 (1) 2010 (1) 2011 (1) 2012 (1) 2013 (1) 2014 (1) 2015 (1) 2016 (Amounts in thousands) (Amounts in thousands) 2007 $ 119,505 $ 116,950 $ 112,042 $ 111,378 $ 109,836 $ 110,052 $ 110,092 $ 110,161 $ 110,142 $ 110,204 $ 42 14 2008 146,486 139,549 138,605 139,142 138,190 138,803 139,149 139,156 139,216 5 16 2009 135,889 135,000 131,680 133,087 133,121 134,718 134,597 134,478 (3 ) 17 2010 165,727 157,566 160,983 160,472 160,206 160,015 159,608 (17 ) 21 2011 167,414 170,623 170,052 169,600 169,390 169,621 325 23 2012 196,063 188,010 190,376 191,548 192,057 585 25 2013 191,903 188,915 188,026 186,795 775 23 2014 199,298 202,621 203,218 2,993 25 2015 234,800 234,881 9,431 24 2016 250,440 36,538 23 Total $ 1,780,518 __________ (1) The information for the years 2007 to 2015 is presented as unaudited supplemental information. Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance (Homeowners' Insurance) For the Years Ended December 31, Accident Year 2007 (1) 2008 (1) 2009 (1) 2010 (1) 2011 (1) 2012 (1) 2013 (1) 2014 (1) 2015 (1) 2016 (Amounts in thousands) 2007 $ 71,165 $ 100,774 $ 104,340 $ 108,404 $ 109,305 $ 109,874 $ 109,932 $ 109,949 $ 110,064 $ 110,075 2008 86,954 122,239 129,821 135,500 137,284 138,137 138,680 138,809 138,922 2009 86,034 119,306 126,591 130,928 132,180 134,381 134,378 134,301 2010 95,057 137,628 149,084 155,191 156,853 158,053 158,943 2011 111,909 153,845 162,870 166,375 167,806 168,621 2012 128,618 175,029 182,756 188,121 190,373 2013 133,528 174,295 180,858 183,860 2014 139,615 186,996 194,605 2015 163,196 213,994 2016 173,435 Total $ 1,667,129 All outstanding liabilities before 2007, net of reinsurance 2,661 Loss and allocated loss adjustment expense reserves, net of reinsurance $ 116,050 __________ (1) The information for the years 2007 to 2015 is presented as unaudited supplemental information. |
Schedule of Historical Claims Duration | The following is unaudited supplementary information about average historical claims duration as of December 31, 2016. Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance Years 1 2 3 4 5 6 7 8 9 10 Automobile insurance 66.0 % 17.1 % 8.5 % 4.9 % 2.2 % 0.7 % 0.4 % 0.1 % 0.1 % — Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance Years 1 2 3 4 5 6 7 8 9 10 Homeowners insurance 66.1 % 24.3 % 4.6 % 3.0 % 1.0 % 0.7 % 0.2 % — 0.1 % — |
Reconciliation of the Disclosure of Incurred and Paid Claims Development to the Loss and Loss Adjustment Expense Reserves | The reconciliation of the net incurred and paid claims development tables to the liability for claims and claim adjustment expenses in the consolidated balance sheets is as follows. Reconciliation of the Disclosure of Incurred and Paid Claims Development to the Loss and Loss Adjustment Expense Reserves December 31, 2016 (Amounts in thousands) Net outstanding liabilities Automobile insurance $ 1,016,832 Homeowners' insurance 116,050 WAIC automobile insurance 12,232 Other short-duration insurance lines 51,320 Loss and loss adjustment expense reserves, net of reinsurance 1,196,434 Reinsurance recoverable on unpaid claims Automobile insurance 12,601 Homeowners' insurance 199 Other short-duration insurance lines 360 Total reinsurance recoverable on unpaid claims 13,160 Insurance lines other than short-duration 1,480 Unallocated claims adjustment expenses 79,174 80,654 Total gross loss and loss adjustment expense reserves $ 1,290,248 |
Dividends (Tables)
Dividends (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Dividends [Abstract] | |
Dividends Paid In Total And Per Share | The following table presents shareholder dividends paid: Year Ended December 31, 2016 2015 2014 (Amounts in thousands, except per share data) Total paid $ 137,201 $ 136,386 $ 135,496 Per share paid $ 2.4825 $ 2.4725 $ 2.4625 |
Statutory Balances and Accoun43
Statutory Balances and Accounting Practices (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Statutory Balances And Accounting Practices [Abstract] | |
Schedule Of Statutory Net Income And Capital And Surplus | The following table presents the statutory net income, and statutory capital and surplus of the Insurance Companies, as reported to regulatory authorities: Year Ended December 31, 2016 2015 2014 (Amounts in thousands) Statutory net income (1) $ 82,359 $ 123,984 $ 155,654 Statutory capital and surplus $ 1,441,571 $ 1,451,950 $ 1,438,281 __________ (1) Statutory net income reflects differences from GAAP net income, including changes in the fair value of the investment portfolio as a result of the application of the fair value option. |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Cash Proceeds Received from Share-based Payment Awards | Year Ended December 31, 2016 2015 2014 (Amounts in thousands) Cash received from stock option exercises $ 1,505 $ 2,111 $ 6,247 Compensation cost, all share-based awards 142 5,208 4,112 Excess tax benefit, all share-based awards 913 27 148 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The following table provides the assumptions used in the calculation of grant-date fair values of stock options awarded during 2013 based on the Black-Scholes option pricing model: 2013 Weighted-average grant-date fair value $7.11 Expected volatility 33.16% - 33.18% Weighted-average expected volatility 33.17% Risk-free interest rate 0.88% - 1.60% Expected dividend yield 5.40% - 5.76% Expected term in months 72 |
Summary of Stock Option Activity | The following table presents a summary of the stock option activity under the Company’s plans for the year ended December 31, 2016 : Shares Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (in 000’s) Outstanding at January 1, 2016 168,000 $ 48.14 Granted — — Exercised (62,500) $ 46.12 Canceled or expired (20,000) $ 57.10 Outstanding at December 31, 2016 85,500 $ 47.52 3.1 $ 1,085 Exercisable at December 31, 2016 65,500 $ 48.73 2.1 $ 752 |
Schedule of Options Authorized under Stock Option Plans, by Exercise Price Range | The following table presents information regarding stock options outstanding at December 31, 2016 : Options Outstanding Options Exercisable Range of Exercise Prices Number of Options Weighted-Average Remaining Contractual Life (Years) Weighted- Average Exercise Price Number of Options Weighted- Average Exercise Price $33.61-$45.30 41,000 5.7 $ 42.44 21,000 $ 41.40 $47.61-$50.35 15,000 1.3 $ 48.52 15,000 $ 48.52 $51.51-$54.93 29,500 0.4 $ 54.06 29,500 $ 54.06 |
Summary of Grants | The following table presents the restricted stock unit grants summary at December 31, 2016 : Grant Year 2016 2015 2014 Three-year performance period ending December 31, 2018 2017 2016 Vesting shares, target (net of forfeited) 93,250 95,750 82,000 Vesting shares, maximum (net of forfeited) 174,844 179,531 153,750 |
Summary of Vested And Unvested RSU | The following table presents a summary of restricted stock unit awards activity during the years indicated: Year Ended December 31, 2016 2015 2014 Shares Weighted- Average Fair Value per Share Shares Weighted- Average Fair Value per Share Shares Weighted- Average Fair Value per Share Outstanding at January 1 263,250 $ 45.94 167,000 $ 41.15 170,500 $ 39.64 Granted 95,750 $ 53.49 100,250 $ 53.80 93,500 $ 45.17 Vested (78,500 ) $ 36.82 — — — — Forfeited/Canceled (9,500) $ 50.46 (4,000) $ 43.10 (16,500) $ 43.99 Expired — — — — (80,500) $ 44.01 Outstanding at December 31 271,000 $ 51.09 263,250 $ 45.94 167,000 $ 41.15 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share Reconciliation [Abstract] | |
Reconciliation Of Numerators And Denominators Of Basic And Diluted Earnings Per Share | The following table presents a reconciliation of the numerators and denominators of the basic and diluted earnings per share calculations: Year Ended December 31, 2016 2015 2014 Income (Numerator) Weighted Shares (Denominator) Per-Share Amount Income (Numerator) Weighted Shares (Denominator) Per-Share Amount Income (Numerator) Weighted Shares (Denominator) Per-Share Amount (Amounts and numbers in thousands, except per-share data) Basic EPS Income available to common stockholders $ 73,044 55,249 $ 1.32 $ 74,479 55,157 $ 1.35 $ 177,949 55,008 $ 3.23 Effect of dilutive securities: Options — 11 — 15 — 12 RSUs — 42 — 37 — — Diluted EPS Income available to common stockholders after assumed conversions $ 73,044 55,302 $ 1.32 $ 74,479 55,209 $ 1.35 $ 177,949 55,020 $ 3.23 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Future Minimum Commitments For Operating Leases | The following table presents future minimum commitments for operating leases as of December 31, 2016 : Year Ending December 31, Operating Leases (Amounts in thousands) 2017 $ 14,647 2018 6,784 2019 2,713 2020 1,945 2021 861 Thereafter 148 |
Quarterly Financial Informati47
Quarterly Financial Information (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Data [Abstract] | |
Summary Of Quarterly Financial Data | The following table presents summarized quarterly financial data for 2016 and 2015 : Quarter Ended March 31 June 30 September 30 December 31 (Amounts in thousands, except per share data) 2016 Net premiums earned $ 767,085 $ 779,321 $ 790,850 $ 794,517 Change in fair value of investments pursuant to the fair value option 18,531 37,127 (21,132 ) (67,332 ) Income before income taxes 26,034 64,335 31,625 (51,270 ) Net income (loss) 23,323 48,873 26,930 (26,082 ) Basic earnings per share (1) 0.42 0.88 0.49 (0.47 ) Diluted earnings per share (1) 0.42 0.88 0.49 (0.47 ) Dividends paid per share 0.6200 0.6200 0.6200 0.6225 2015 Net premiums earned $ 720,737 $ 731,546 $ 745,520 $ 760,094 Change in fair value of investments pursuant to the fair value option (4,884 ) (40,783 ) (18,538 ) 2,474 Income before income taxes 29,859 4,511 12,267 23,930 Net income 26,165 9,639 15,270 23,405 Basic earnings per share (1) 0.47 0.17 0.28 0.42 Diluted earnings per share (1) 0.47 0.17 0.28 0.42 Dividends paid per share 0.6175 0.6175 0.6175 0.6200 __________ (1) The basic and diluted earnings per share do not sum due to rounding. |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Reconciliation of operating results by reportable segment | The following table presents operating results by reportable segment for the years ended: December 31, 2016 December 31, 2015 December 31, 2014 Property & Casualty Lines Other Total Property & Casualty Lines Other Total Property & Casualty Lines Other Total (Amounts in millions) Net premiums earned $ 3,089.9 $ 41.9 $ 3,131.8 $ 2,906.6 $ 51.3 $ 2,957.9 $ 2,737.3 $ 58.9 $ 2,796.2 Less: Losses and loss adjustment expenses 2,333.2 21.9 2,355.1 2,117.3 28.2 2,145.5 1,951.4 34.7 1,986.1 Underwriting expenses 780.4 17.5 797.9 770.0 20.0 790.0 749.7 25.9 775.6 Underwriting (loss) gain (23.7 ) 2.5 (21.2 ) 19.3 3.1 22.4 36.2 (1.7 ) 34.5 Investment income 121.9 126.3 125.7 Net realized investment (losses) gains (34.3 ) (83.8 ) 81.2 Other income 8.3 8.9 8.7 Interest expense (4.0 ) (3.2 ) (2.6 ) Pre-tax income $ 70.7 $ 70.6 $ 247.4 Net income $ 73.0 $ 74.5 $ 177.9 |
Schedule direct premiums attributable to segment | The following table presents the Company’s net premiums earned and direct premiums written by line of insurance business for the years ended: December 31, 2016 December 31, 2015 December 31, 2014 Property & Casualty Lines Other Total Property & Casualty Lines Other Total Property & Casualty Lines Other Total (Amounts in millions) Private passenger automobile $ 2,435.7 $ — $ 2,435.7 $ 2,308.6 $ — $ 2,308.6 $ 2,203.0 $ — $ 2,203.0 Homeowners 414.0 — 414.0 379.7 — 379.7 347.9 — 347.9 Commercial automobile 161.3 — 161.3 144.4 — 144.4 121.8 — 121.8 Other 78.9 41.9 120.8 73.9 51.3 125.2 64.6 58.9 123.5 Net premiums earned $ 3,089.9 $ 41.9 $ 3,131.8 $ 2,906.6 $ 51.3 2,957.9 $ 2,737.3 $ 58.9 $ 2,796.2 Private passenger automobile $ 2,452.7 $ — $ 2,452.7 $ 2,345.8 $ — $ 2,345.8 $ 2,223.1 $ — $ 2,223.1 Homeowners 436.9 — 436.9 402.2 — 402.2 374.5 — 374.5 Commercial automobile 166.1 — 166.1 153.5 — 153.5 135.9 — 135.9 Other 89.0 27.3 116.3 81.6 29.8 111.4 75.4 44.3 119.7 Direct premiums written $ 3,144.7 $ 27.3 $ 3,172.0 $ 2,983.1 $ 29.8 $ 3,012.9 $ 2,808.9 $ 44.3 $ 2,853.2 |
Summary of Significant Accoun49
Summary of Significant Accounting Policies (Narrative) (Details) | 12 Months Ended | ||
Dec. 31, 2016USD ($)StateSubsidiary | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Summary Of Significant Accounting Policies [Line Items] | |||
Number of insurance companies | Subsidiary | 14 | ||
Number of states in which company operates | State | 11 | ||
Percentage of direct premiums written as private passenger automobile lines of insurance | 77.00% | ||
Percentage of private passenger automobile premiums written in California | 84.00% | 83.00% | 83.00% |
Percentage by which dividend income on non redeemable preferred stock, partnership, common stock is partially tax-sheltered | 70.00% | ||
Insurance companies security deposits | $ 19,000,000 | $ 21,000,000 | |
Deferred policy acquisition cost amortization | 562,545,000 | 539,231,000 | $ 526,208,000 |
Advertising expenses | 40,000,000 | 44,000,000 | 23,000,000 |
Impairment charges | 0 | 0 | 0 |
Goodwill impairment loss | 0 | 0 | |
Premiums written, net | $ 3,160,000,000 | $ 3,000,000,000 | $ 2,840,000,000 |
Options Granted Subsequent To January 1, 2008 [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Option vesting term, years | 4 years | ||
Minimum [Member] | Options Granted Prior To 2008 [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Option vesting term, years | 4 years | ||
Maximum [Member] | Options Granted Prior To 2008 [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Option vesting term, years | 5 years | ||
Building [Member] | Minimum [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Useful life, in years | 30 years | ||
Building [Member] | Maximum [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Useful life, in years | 40 years | ||
Furniture Equipment And Purchase Software [Member] | Minimum [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Useful life, in years | 3 years | ||
Furniture Equipment And Purchase Software [Member] | Maximum [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Useful life, in years | 7 years | ||
Software [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Useful life, in years | 7 years |
Fair Value of Financial Instr50
Fair Value of Financial Instruments (Narrative) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Liabilities fair value | $ 320,785 | $ 301,785 | |
Other liabilities | 229,335 | 199,187 | |
Unsecured Debt [Member] | Borrowings [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Liabilities fair value | 180,000 | 150,000 | |
Level 2 [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Liabilities fair value | 320,765 | 301,525 | |
Level 2 [Member] | Unsecured Debt [Member] | Borrowings [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Liabilities fair value | [1] | 180,000 | 150,000 |
Level 2 [Member] | Secured Notes One [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Secured loan | 120,000 | 120,000 | |
Level 2 [Member] | Secured Notes Two [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Secured loan | 20,000 | 20,000 | |
Options Sold [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Liabilities fair value | $ 20 | 260 | |
Other liabilities | $ 260 | ||
[1] | On July 2, 2013, the Company entered into an unsecured $200 million five-year revolving credit facility, which later was expanded to a borrowing capacity of $250 million. The interest rate on borrowings under the credit facility is based on the Company's debt to total capital ratio and ranges from LIBOR plus 112.5 basis points when the ratio is under 15% to LIBOR plus 162.5 basis points when the ratio is above 25%. Commitment fees for the undrawn portions of the credit facility range from 12.5 basis points when the ratio is under 15% to 22.5 basis points when the ratio is above 25%. Debt to capital ratio is expressed as a percentage of (a) consolidated debt to (b) consolidated shareholders' equity plus consolidated debt. In 2016, the interest rate was LIBOR plus 112.5 basis points on the $180 million of borrowings and 12.5 basis points on the undrawn portion of the credit facility. The interest rate was approximately 1.73% at December 31, 2016. |
Fair Value of Financial Instr51
Fair Value of Financial Instruments (Estimated Fair Values Of Financial Instruments) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Liabilities | ||
Liabilities fair value | $ 320,785 | $ 301,785 |
Investments [Member] | ||
Assets | ||
Assets fair value | 3,547,560 | 3,380,642 |
Total Return Swap [Member] | ||
Assets | ||
Assets fair value | 667 | 0 |
Liabilities | ||
Liabilities fair value | 765 | 11,525 |
Secured Debt [Member] | Borrowings [Member] | ||
Liabilities | ||
Liabilities fair value | 140,000 | 140,000 |
Unsecured Debt [Member] | Borrowings [Member] | ||
Liabilities | ||
Liabilities fair value | 180,000 | 150,000 |
Options Sold [Member] | ||
Liabilities | ||
Liabilities fair value | $ 20 | $ 260 |
Investments (Gains And Losses D
Investments (Gains And Losses Due To Changes In Fair Value Of Investments) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | |||||||||||
Gains and losses due to changes in fair value of investments | $ (67,332) | $ (21,132) | $ 37,127 | $ 18,531 | $ 2,474 | $ (18,538) | $ (40,783) | $ (4,884) | $ (32,805) | $ (61,731) | $ 43,759 |
Fixed Maturity Securities [Member] | |||||||||||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | |||||||||||
Gains and losses due to changes in fair value of investments | (56,584) | (39,304) | 77,208 | ||||||||
Equity Securities [Member] | |||||||||||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | |||||||||||
Gains and losses due to changes in fair value of investments | 23,722 | (22,988) | (32,922) | ||||||||
Short-term Investments [Member] | |||||||||||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | |||||||||||
Gains and losses due to changes in fair value of investments | $ 57 | $ 561 | $ (527) |
Investments (Gross Gains And Lo
Investments (Gross Gains And Losses Realized On Sales Of Investments) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Fixed Maturity Securities [Member] | |||
Investments [Line Items] | |||
Gross Realized Gains | $ 3,327 | $ 631 | $ 7,015 |
Gross Realized Losses | (19,133) | (495) | (9,734) |
Net | (15,806) | 136 | (2,719) |
Equity Securities [Member] | |||
Investments [Line Items] | |||
Gross Realized Gains | 29,446 | 41,305 | 59,342 |
Gross Realized Losses | (29,945) | (58,764) | (17,705) |
Net | (499) | (17,459) | 41,637 |
Short-term Investments [Member] | |||
Investments [Line Items] | |||
Gross Realized Gains | 6 | 0 | 0 |
Gross Realized Losses | (529) | (1,396) | (1,943) |
Net | $ (523) | $ (1,396) | $ (1,943) |
Investments (Estimated Fair Val
Investments (Estimated Fair Value Of Investments) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Fixed maturity securities: | ||
Due in one year or less | $ 381,189 | |
Due after one year through five years | 515,049 | |
Due after five years through ten years | 316,173 | |
Due after ten years | 1,602,142 | |
Total | $ 2,814,553 | $ 2,880,003 |
External credit rating, non investment grade [Member] | ||
Credit Derivatives [Line Items] | ||
Percentage of fixed maturities | 3.90% |
Investments (Investment Income)
Investments (Investment Income) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Investments [Line Items] | |||
Total investment income | $ 127,676 | $ 131,785 | $ 130,820 |
Less: Investment expense | (5,805) | (5,486) | (5,097) |
Net investment income | 121,871 | 126,299 | 125,723 |
Fixed Maturity Securities [Member] | |||
Investments [Line Items] | |||
Total investment income | 104,111 | 108,122 | 104,946 |
Equity Securities [Member] | |||
Investments [Line Items] | |||
Total investment income | 14,629 | 14,630 | 17,313 |
Short-term Investments [Member] | |||
Investments [Line Items] | |||
Total investment income | $ 8,936 | $ 9,033 | $ 8,561 |
Fair Value Measurement (Narrati
Fair Value Measurement (Narrative) (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016USD ($)broker | Dec. 31, 2015USD ($) | |
Fair Value Measurement [Line Items] | ||
Percentage of portfolio of unadjusted fair values obtained | 99.70% | |
Percentage of portfolio of specific unadjusted broker quotes obtained | 0.30% | |
Fair value of assets measured on a recurring basis | $ 3,548,227 | $ 3,380,642 |
Level 3 [Member] | ||
Fair Value Measurement [Line Items] | ||
Fair value of assets measured on a recurring basis | 9,068 | 10,431 |
Level 2 [Member] | ||
Fair Value Measurement [Line Items] | ||
Fair value of assets measured on a recurring basis | 2,854,987 | 2,892,014 |
Level 2 [Member] | Commercial Mortgage Backed Securities [Member] | ||
Fair Value Measurement [Line Items] | ||
Trading securities, fair value disclosure | $ 30,000 | $ 37,300 |
Minimum [Member] | ||
Fair Value Measurement [Line Items] | ||
Number of knowledgeable outside security brokers consulted to determine fair value | broker | 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 ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | |
Fair Value Measurement [Line Items] | |||
Fair value of assets measured on a recurring basis | $ 3,548,227 | $ 3,380,642 | |
Fair value of liabilities measured on a recurring basis | 320,785 | 301,785 | |
Level 1 [Member] | |||
Fair Value Measurement [Line Items] | |||
Fair value of assets measured on a recurring basis | 684,172 | 478,197 | |
Fair value of liabilities measured on a recurring basis | 20 | 260 | |
Level 2 [Member] | |||
Fair Value Measurement [Line Items] | |||
Fair value of assets measured on a recurring basis | 2,854,987 | 2,892,014 | |
Fair value of liabilities measured on a recurring basis | 320,765 | 301,525 | |
Level 3 [Member] | |||
Fair Value Measurement [Line Items] | |||
Fair value of assets measured on a recurring basis | 9,068 | 10,431 | |
Fair value of liabilities measured on a recurring basis | 0 | 0 | |
Fixed Maturity Securities [Member] | US Treasury and Government [Member] | |||
Fair Value Measurement [Line Items] | |||
Fair value of assets measured on a recurring basis | 12,275 | 22,507 | |
Fixed Maturity Securities [Member] | US Treasury and Government [Member] | Level 1 [Member] | |||
Fair Value Measurement [Line Items] | |||
Fair value of assets measured on a recurring basis | 12,275 | 22,507 | |
Fixed Maturity Securities [Member] | US Treasury and Government [Member] | Level 2 [Member] | |||
Fair Value Measurement [Line Items] | |||
Fair value of assets measured on a recurring basis | 0 | 0 | |
Fixed Maturity Securities [Member] | US Treasury and Government [Member] | Level 3 [Member] | |||
Fair Value Measurement [Line Items] | |||
Fair value of assets measured on a recurring basis | 0 | 0 | |
Fixed Maturity Securities [Member] | US States and Political Subdivisions Debt Securities [Member] | |||
Fair Value Measurement [Line Items] | |||
Fair value of assets measured on a recurring basis | 2,449,292 | 2,505,040 | |
Fixed Maturity Securities [Member] | US States and Political Subdivisions Debt Securities [Member] | Level 1 [Member] | |||
Fair Value Measurement [Line Items] | |||
Fair value of assets measured on a recurring basis | 0 | 0 | |
Fixed Maturity Securities [Member] | US States and Political Subdivisions Debt Securities [Member] | Level 2 [Member] | |||
Fair Value Measurement [Line Items] | |||
Fair value of assets measured on a recurring basis | 2,449,292 | 2,505,040 | |
Fixed Maturity Securities [Member] | US States and Political Subdivisions Debt Securities [Member] | Level 3 [Member] | |||
Fair Value Measurement [Line Items] | |||
Fair value of assets measured on a recurring basis | 0 | 0 | |
Fixed Maturity Securities [Member] | Collateralized Mortgage Backed Securities [Member] | |||
Fair Value Measurement [Line Items] | |||
Fair value of assets measured on a recurring basis | 39,777 | 49,838 | |
Fixed Maturity Securities [Member] | Collateralized Mortgage Backed Securities [Member] | Level 1 [Member] | |||
Fair Value Measurement [Line Items] | |||
Fair value of assets measured on a recurring basis | 0 | 0 | |
Fixed Maturity Securities [Member] | Collateralized Mortgage Backed Securities [Member] | Level 2 [Member] | |||
Fair Value Measurement [Line Items] | |||
Fair value of assets measured on a recurring basis | 39,777 | 49,838 | |
Fixed Maturity Securities [Member] | Collateralized Mortgage Backed Securities [Member] | Level 3 [Member] | |||
Fair Value Measurement [Line Items] | |||
Fair value of assets measured on a recurring basis | 0 | 0 | |
Fixed Maturity Securities [Member] | Corporate Debt Securities [Member] | |||
Fair Value Measurement [Line Items] | |||
Fair value of assets measured on a recurring basis | 189,688 | 243,372 | |
Fixed Maturity Securities [Member] | Corporate Debt Securities [Member] | Level 1 [Member] | |||
Fair Value Measurement [Line Items] | |||
Fair value of assets measured on a recurring basis | 0 | 0 | |
Fixed Maturity Securities [Member] | Corporate Debt Securities [Member] | Level 2 [Member] | |||
Fair Value Measurement [Line Items] | |||
Fair value of assets measured on a recurring basis | 189,688 | 243,372 | |
Fixed Maturity Securities [Member] | Corporate Debt Securities [Member] | Level 3 [Member] | |||
Fair Value Measurement [Line Items] | |||
Fair value of assets measured on a recurring basis | 0 | 0 | |
Fixed Maturity Securities [Member] | Collateralized Debt Obligations [Member] | |||
Fair Value Measurement [Line Items] | |||
Fair value of assets measured on a recurring basis | 86,525 | 50,548 | |
Fixed Maturity Securities [Member] | Collateralized Debt Obligations [Member] | Level 1 [Member] | |||
Fair Value Measurement [Line Items] | |||
Fair value of assets measured on a recurring basis | 0 | 0 | |
Fixed Maturity Securities [Member] | Collateralized Debt Obligations [Member] | Level 2 [Member] | |||
Fair Value Measurement [Line Items] | |||
Fair value of assets measured on a recurring basis | 86,525 | 50,548 | |
Fixed Maturity Securities [Member] | Collateralized Debt Obligations [Member] | Level 3 [Member] | |||
Fair Value Measurement [Line Items] | |||
Fair value of assets measured on a recurring basis | 0 | 0 | |
Fixed Maturity Securities [Member] | Collateralized Auto Loans [Member] | |||
Fair Value Measurement [Line Items] | |||
Fair value of assets measured on a recurring basis | 36,996 | 8,698 | |
Fixed Maturity Securities [Member] | Collateralized Auto Loans [Member] | Level 1 [Member] | |||
Fair Value Measurement [Line Items] | |||
Fair value of assets measured on a recurring basis | 0 | 0 | |
Fixed Maturity Securities [Member] | Collateralized Auto Loans [Member] | Level 2 [Member] | |||
Fair Value Measurement [Line Items] | |||
Fair value of assets measured on a recurring basis | 36,996 | 8,698 | |
Fixed Maturity Securities [Member] | Collateralized Auto Loans [Member] | Level 3 [Member] | |||
Fair Value Measurement [Line Items] | |||
Fair value of assets measured on a recurring basis | 0 | 0 | |
Equity Securities [Member] | |||
Fair Value Measurement [Line Items] | |||
Fair value of assets measured on a recurring basis | 316,450 | 280,263 | |
Equity Securities [Member] | Level 1 [Member] | |||
Fair Value Measurement [Line Items] | |||
Fair value of assets measured on a recurring basis | 316,450 | 280,263 | |
Equity Securities [Member] | Level 2 [Member] | |||
Fair Value Measurement [Line Items] | |||
Fair value of assets measured on a recurring basis | 0 | 0 | |
Equity Securities [Member] | Level 3 [Member] | |||
Fair Value Measurement [Line Items] | |||
Fair value of assets measured on a recurring basis | 0 | 0 | |
Equity Securities [Member] | Nonredeemable Preferred Stock [Member] | |||
Fair Value Measurement [Line Items] | |||
Fair value of assets measured on a recurring basis | 31,809 | 24,668 | |
Equity Securities [Member] | Nonredeemable Preferred Stock [Member] | Level 1 [Member] | |||
Fair Value Measurement [Line Items] | |||
Fair value of assets measured on a recurring basis | 0 | 0 | |
Equity Securities [Member] | Nonredeemable Preferred Stock [Member] | Level 2 [Member] | |||
Fair Value Measurement [Line Items] | |||
Fair value of assets measured on a recurring basis | 31,809 | 24,668 | |
Equity Securities [Member] | Nonredeemable Preferred Stock [Member] | Level 3 [Member] | |||
Fair Value Measurement [Line Items] | |||
Fair value of assets measured on a recurring basis | 0 | 0 | |
Equity Securities [Member] | Private Equity Funds [Member] | |||
Fair Value Measurement [Line Items] | |||
Fair value of assets measured on a recurring basis | 9,068 | 10,431 | |
Equity Securities [Member] | Private Equity Funds [Member] | Level 1 [Member] | |||
Fair Value Measurement [Line Items] | |||
Fair value of assets measured on a recurring basis | 0 | 0 | |
Equity Securities [Member] | Private Equity Funds [Member] | Level 2 [Member] | |||
Fair Value Measurement [Line Items] | |||
Fair value of assets measured on a recurring basis | 0 | 0 | |
Equity Securities [Member] | Private Equity Funds [Member] | Level 3 [Member] | |||
Fair Value Measurement [Line Items] | |||
Fair value of assets measured on a recurring basis | 9,068 | 10,431 | |
Short-term Investments [Member] | |||
Fair Value Measurement [Line Items] | |||
Fair value of assets measured on a recurring basis | 90,626 | 79,841 | |
Short-term Investments [Member] | Level 1 [Member] | |||
Fair Value Measurement [Line Items] | |||
Fair value of assets measured on a recurring basis | 70,393 | 69,991 | |
Short-term Investments [Member] | Level 2 [Member] | |||
Fair Value Measurement [Line Items] | |||
Fair value of assets measured on a recurring basis | 20,233 | 9,850 | |
Short-term Investments [Member] | Level 3 [Member] | |||
Fair Value Measurement [Line Items] | |||
Fair value of assets measured on a recurring basis | 0 | 0 | |
Money Market Funds [Member] | |||
Fair Value Measurement [Line Items] | |||
Fair value of assets measured on a recurring basis | 285,054 | 105,436 | |
Money Market Funds [Member] | Level 1 [Member] | |||
Fair Value Measurement [Line Items] | |||
Fair value of assets measured on a recurring basis | 285,054 | 105,436 | |
Money Market Funds [Member] | Level 2 [Member] | |||
Fair Value Measurement [Line Items] | |||
Fair value of assets measured on a recurring basis | 0 | 0 | |
Money Market Funds [Member] | Level 3 [Member] | |||
Fair Value Measurement [Line Items] | |||
Fair value of assets measured on a recurring basis | 0 | 0 | |
Total Return Swap [Member] | |||
Fair Value Measurement [Line Items] | |||
Fair value of assets measured on a recurring basis | 667 | ||
Fair value of liabilities measured on a recurring basis | 765 | 11,525 | |
Total Return Swap [Member] | Level 1 [Member] | |||
Fair Value Measurement [Line Items] | |||
Fair value of assets measured on a recurring basis | 0 | ||
Fair value of liabilities measured on a recurring basis | 0 | 0 | |
Total Return Swap [Member] | Level 2 [Member] | |||
Fair Value Measurement [Line Items] | |||
Fair value of assets measured on a recurring basis | 667 | ||
Fair value of liabilities measured on a recurring basis | 765 | 11,525 | |
Total Return Swap [Member] | Level 3 [Member] | |||
Fair Value Measurement [Line Items] | |||
Fair value of assets measured on a recurring basis | 0 | ||
Fair value of liabilities measured on a recurring basis | 0 | 0 | |
Equity Contract [Member] | |||
Fair Value Measurement [Line Items] | |||
Fair value of liabilities measured on a recurring basis | 20 | 260 | |
Equity Contract [Member] | Level 1 [Member] | |||
Fair Value Measurement [Line Items] | |||
Fair value of liabilities measured on a recurring basis | 20 | 260 | |
Equity Contract [Member] | Level 2 [Member] | |||
Fair Value Measurement [Line Items] | |||
Fair value of liabilities measured on a recurring basis | 0 | 0 | |
Equity Contract [Member] | Level 3 [Member] | |||
Fair Value Measurement [Line Items] | |||
Fair value of liabilities measured on a recurring basis | 0 | 0 | |
Secured Debt [Member] | Borrowings [Member] | |||
Fair Value Measurement [Line Items] | |||
Fair value of liabilities measured on a recurring basis | 140,000 | 140,000 | |
Secured Debt [Member] | Borrowings [Member] | Level 1 [Member] | |||
Fair Value Measurement [Line Items] | |||
Fair value of liabilities measured on a recurring basis | 0 | 0 | |
Secured Debt [Member] | Borrowings [Member] | Level 2 [Member] | |||
Fair Value Measurement [Line Items] | |||
Fair value of liabilities measured on a recurring basis | 140,000 | 140,000 | |
Secured Debt [Member] | Borrowings [Member] | Level 3 [Member] | |||
Fair Value Measurement [Line Items] | |||
Fair value of liabilities measured on a recurring basis | 0 | 0 | |
Unsecured Debt [Member] | Borrowings [Member] | |||
Fair Value Measurement [Line Items] | |||
Fair value of liabilities measured on a recurring basis | 180,000 | 150,000 | |
Unsecured Debt [Member] | Borrowings [Member] | Level 1 [Member] | |||
Fair Value Measurement [Line Items] | |||
Fair value of liabilities measured on a recurring basis | 0 | 0 | |
Unsecured Debt [Member] | Borrowings [Member] | Level 2 [Member] | |||
Fair Value Measurement [Line Items] | |||
Fair value of liabilities measured on a recurring basis | [1] | 180,000 | 150,000 |
Unsecured Debt [Member] | Borrowings [Member] | Level 3 [Member] | |||
Fair Value Measurement [Line Items] | |||
Fair value of liabilities measured on a recurring basis | $ 0 | $ 0 | |
[1] | On July 2, 2013, the Company entered into an unsecured $200 million five-year revolving credit facility, which later was expanded to a borrowing capacity of $250 million. The interest rate on borrowings under the credit facility is based on the Company's debt to total capital ratio and ranges from LIBOR plus 112.5 basis points when the ratio is under 15% to LIBOR plus 162.5 basis points when the ratio is above 25%. Commitment fees for the undrawn portions of the credit facility range from 12.5 basis points when the ratio is under 15% to 22.5 basis points when the ratio is above 25%. Debt to capital ratio is expressed as a percentage of (a) consolidated debt to (b) consolidated shareholders' equity plus consolidated debt. In 2016, the interest rate was LIBOR plus 112.5 basis points on the $180 million of borrowings and 12.5 basis points on the undrawn portion of the credit facility. The interest rate was approximately 1.73% at December 31, 2016. |
Fair Value Measurement (Summary
Fair Value Measurement (Summary Of Changes In Fair Value Of Level 3 Financial Assets And Financial Liabilities Held At Fair Value) (Details) - Partnership Interest in a Private Credit Fund [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | $ 10,431 | $ 11,719 |
Realized losses included in earnings | (1,363) | (4,175) |
Reclassification from other assets | 0 | 2,911 |
Sales | 0 | 0 |
Settlements | 0 | (24) |
Ending Balance | 9,068 | 10,431 |
The amount of total losses for the period included in earnings attributable to assets still held at December 31 | $ (1,363) | $ (5,385) |
Fixed Assets (Details)
Fixed Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Property, Plant and Equipment [Abstract] | |||
Land | $ 26,770 | $ 26,770 | |
Buildings and improvements | 134,952 | 132,529 | |
Furniture and equipment | 114,156 | 109,802 | |
Capitalized software | 190,092 | 178,113 | |
Leasehold improvements | 9,369 | 9,109 | |
Fixed assets, gross | 475,339 | 456,323 | |
Less accumulated depreciation and amortization | (319,429) | (299,192) | |
Fixed assets, net | 155,910 | 157,131 | |
Depreciation expense | $ 20,200 | $ 20,500 | $ 22,100 |
Deferred Policy Acquisition C60
Deferred Policy Acquisition Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | |||
Balance, beginning of year | $ 201,762 | $ 197,202 | $ 194,466 |
Policy acquisition costs deferred | 561,610 | 543,791 | 528,944 |
Amortization | (562,546) | (539,231) | (526,208) |
Balance, end of year | $ 200,826 | $ 201,762 | $ 197,202 |
Notes Payable (Narrative) (Deta
Notes Payable (Narrative) (Details) | Jul. 02, 2013USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 03, 2015USD ($) |
Debt Instrument [Line Items] | ||||
Loan maximum borrowing capacity | $ 250,000,000 | |||
Revolving credit facility term | 5 years | |||
Unsecured credit facility | $ 180,000,000 | |||
Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
Advance rate used to calculate collateral requirement | 75.00% | |||
Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
Advance rate used to calculate collateral requirement | 100.00% | |||
Bank Of America [Member] | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 0.40% | |||
Secured debt, other | $ 20,000,000 | |||
AIS [Member] | ||||
Debt Instrument [Line Items] | ||||
Secured debt, other | $ 120,000,000 | |||
Revolving Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Loan maximum borrowing capacity | $ 200,000,000 | $ 250,000,000 | $ 250,000,000 | |
Revolving credit facility term | 5 years | |||
Commitment fee on undrawn portion of facility | 0.125% | |||
Unsecured credit facility | $ 180,000,000 | |||
Interest rate at period end | 1.73% | |||
Revolving Credit Facility [Member] | Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt to total capital ratio | 0.15 | |||
Commitment fee on undrawn portion of facility | 0.125% | |||
Revolving Credit Facility [Member] | Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt to total capital ratio | 0.25 | |||
Commitment fee on undrawn portion of facility | 0.225% | |||
Revolving Credit Facility [Member] | LIBOR [Member] | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 1.125% | |||
Revolving Credit Facility [Member] | LIBOR [Member] | Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 1.125% | |||
Debt to total capital ratio | 0.15 | |||
Revolving Credit Facility [Member] | LIBOR [Member] | Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 1.625% | |||
Debt to total capital ratio | 0.25 |
Notes Payable (Schedule of Long
Notes Payable (Schedule of Long-term Debt) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | ||
Debt Instrument [Line Items] | |||
Liabilities fair value | $ 320,785 | $ 301,785 | |
Notes Payable | $ 320,000 | 290,000 | |
Bank Of America [Member] | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 0.40% | ||
Union Bank [Member] | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 0.40% | ||
Level 2 [Member] | |||
Debt Instrument [Line Items] | |||
Liabilities fair value | $ 320,765 | 301,525 | |
Level 2 [Member] | Secured Notes One [Member] | |||
Debt Instrument [Line Items] | |||
Secured loan | 120,000 | 120,000 | |
Level 2 [Member] | Secured Notes Two [Member] | |||
Debt Instrument [Line Items] | |||
Secured loan | 20,000 | 20,000 | |
Unsecured Debt [Member] | Borrowings [Member] | |||
Debt Instrument [Line Items] | |||
Liabilities fair value | 180,000 | 150,000 | |
Unsecured Debt [Member] | Borrowings [Member] | Level 2 [Member] | |||
Debt Instrument [Line Items] | |||
Liabilities fair value | [1] | $ 180,000 | $ 150,000 |
[1] | On July 2, 2013, the Company entered into an unsecured $200 million five-year revolving credit facility, which later was expanded to a borrowing capacity of $250 million. The interest rate on borrowings under the credit facility is based on the Company's debt to total capital ratio and ranges from LIBOR plus 112.5 basis points when the ratio is under 15% to LIBOR plus 162.5 basis points when the ratio is above 25%. Commitment fees for the undrawn portions of the credit facility range from 12.5 basis points when the ratio is under 15% to 22.5 basis points when the ratio is above 25%. Debt to capital ratio is expressed as a percentage of (a) consolidated debt to (b) consolidated shareholders' equity plus consolidated debt. In 2016, the interest rate was LIBOR plus 112.5 basis points on the $180 million of borrowings and 12.5 basis points on the undrawn portion of the credit facility. The interest rate was approximately 1.73% at December 31, 2016. |
Notes Payable (Schedule of Matu
Notes Payable (Schedule of Maturities of Debt) (Details) $ in Thousands | Dec. 31, 2016USD ($) |
Notes Payable [Abstract] | |
2,017 | $ 20,000 |
2,018 | 120,000 |
2,019 | $ 180,000 |
Derivative Financial Instrume64
Derivative Financial Instruments (Narrative) (Details) - Swap [Member] - USD ($) $ in Millions | Feb. 13, 2014 | Aug. 09, 2013 | Dec. 31, 2016 | Dec. 31, 2015 | Jan. 31, 2017 |
FFL [Member] | |||||
Derivative Financial Instruments [Line Items] | |||||
Swap agreement collateral | $ 30 | ||||
Notional amount | $ 108 | $ 95 | |||
Term of swap agreement | 1 year | 1 year | 1 year | ||
FFL [Member] | LIBOR [Member] | |||||
Derivative Financial Instruments [Line Items] | |||||
Basis spread on variable rate | 1.45% | 1.45% | 1.45% | 1.45% | |
AFL [Member] | |||||
Derivative Financial Instruments [Line Items] | |||||
Swap agreement collateral | $ 40 | ||||
Notional amount | $ 152 | $ 124 | |||
Term of swap agreement | 3 years | 1 year | |||
AFL [Member] | LIBOR [Member] | |||||
Derivative Financial Instruments [Line Items] | |||||
Basis spread on variable rate | 1.35% | 1.35% | 1.35% | 1.35% | |
Scenario, forecast [Member] | FFL [Member] | LIBOR [Member] | |||||
Derivative Financial Instruments [Line Items] | |||||
Basis spread on variable rate | 1.28% | ||||
Scenario, forecast [Member] | AFL [Member] | LIBOR [Member] | |||||
Derivative Financial Instruments [Line Items] | |||||
Basis spread on variable rate | 1.28% |
Derivative Financial Instrume65
Derivative Financial Instruments (Summary Of Location And Amounts Of Derivative Fair Values In The Consolidated Balance Sheets) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Derivative Financial Instruments [Line Items] | ||
Asset Derivatives | $ 667 | $ 0 |
Liability Derivatives | 785 | 11,785 |
Not Designated as Hedging Instrument [Member] | Interest rate swap agreements [Member] | Other Assets [Member] | ||
Derivative Financial Instruments [Line Items] | ||
Asset Derivatives | 667 | 0 |
Liability Derivatives | 0 | 0 |
Not Designated as Hedging Instrument [Member] | Interest rate swap agreements [Member] | Other liabilities [Member] | ||
Derivative Financial Instruments [Line Items] | ||
Asset Derivatives | 0 | 0 |
Liability Derivatives | 765 | 11,525 |
Not Designated as Hedging Instrument [Member] | Equity contracts [Member] | Other liabilities [Member] | ||
Derivative Financial Instruments [Line Items] | ||
Asset Derivatives | 0 | 0 |
Liability Derivatives | $ 20 | $ 260 |
Derivative Financial Instrume66
Derivative Financial Instruments (Schedule Of Derivative Gains And Losses In The Consolidated Statements Of Operations) (Details) - Not Designated as Hedging Instrument [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Derivative Financial Instruments [Line Items] | |||
Gains (Losses)Recognized in Income | $ 15,379 | $ (3,357) | $ 450 |
Total Return Swap [Member] | Net realized investment gains [Member] | |||
Derivative Financial Instruments [Line Items] | |||
Gains (Losses)Recognized in Income | 11,533 | (6,438) | (2,969) |
Equity contracts [Member] | Net realized investment gains [Member] | |||
Derivative Financial Instruments [Line Items] | |||
Gains (Losses)Recognized in Income | $ 3,846 | $ 3,081 | $ 3,419 |
Goodwill and Other Intangible67
Goodwill and Other Intangible Assets (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets amortization expense | $ 6.1 | $ 6 | $ 6 |
Insurance license [Member] | Workmen's Auto Insurance Company [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets acquired | $ 1.4 |
Goodwill and Other Intangible68
Goodwill and Other Intangible Assets (Schedule Of Components Of Other Intangible Assets) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 73,530 | $ 73,530 |
Accumulated Amortization | (47,905) | (41,828) |
Other intangible assets, net | 25,625 | 31,702 |
Insurance license [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 1,400 | 1,400 |
Other intangible assets, net | 1,400 | 1,400 |
Customer relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 52,430 | 52,430 |
Accumulated Amortization | (39,332) | (34,327) |
Other intangible assets, net | $ 13,098 | $ 18,103 |
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 | (5,133) | (4,491) |
Other intangible assets, net | $ 10,267 | $ 10,909 |
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 | (3,440) | (3,010) |
Other intangible assets, net | $ 860 | $ 1,290 |
Useful Lives (in years) | 10 years | 10 years |
Goodwill and Other Intangible69
Goodwill and Other Intangible Assets (Schedule Of Estimated Future Amortization Expense Related To Intangible Assets) (Details) $ in Thousands | Dec. 31, 2016USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2,017 | $ 5,349 |
2,018 | 5,335 |
2,019 | 4,906 |
2,020 | 758 |
2,021 | 738 |
Thereafter | 7,139 |
Net Carrying Amount | $ 24,225 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Components of Income Tax Expense (Benefit), Continuing Operations [Abstract] | |||
Federal statutory rate | 35.00% | ||
AMT credit carryforward balance | $ 47,200 | $ 36,300 | |
Net increase of unrecognized tax benefits | 800 | ||
Unrecognized tax benefits | 12,954 | 12,165 | $ 12,612 |
Unrecognized tax benefits that would impact effective tax rate | 11,800 | 10,900 | |
Interest and penalty expense, excluding refunds | 606 | 112 | $ 739 |
Accrued interest and penalty | $ 3,521 | $ 2,915 |
Income Taxes (Components Of Inc
Income Taxes (Components Of Income Tax Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Federal | |||
Current | $ 17,444 | $ 21,942 | $ 44,469 |
Deferred | (21,947) | (25,594) | 20,444 |
Total | (4,503) | (3,652) | 64,913 |
State | |||
Current | 2,239 | 943 | 4,421 |
Deferred | (56) | (1,203) | 142 |
Total | 2,183 | (260) | 4,563 |
Total, Current | 19,683 | 22,885 | 48,890 |
Total, Deferred | (22,003) | (26,797) | 20,586 |
Income tax (benefit) expense | $ (2,320) | $ (3,912) | $ 69,476 |
Income Taxes (Reconciliation Of
Income Taxes (Reconciliation Of Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Components of Income Tax Expense (Benefit), Continuing Operations [Abstract] | |||
Computed tax expense at 35% | $ 24,753 | $ 24,699 | $ 86,598 |
Tax-exempt interest income | (26,197) | (26,993) | (27,839) |
Dividends received deduction | (2,303) | (1,613) | (2,027) |
State tax expense | 1,907 | (287) | 3,872 |
Nondeductible expenses | 303 | 575 | 9,900 |
Other, net | (783) | (293) | (1,028) |
Income tax (benefit) expense | $ (2,320) | $ (3,912) | $ 69,476 |
Income Taxes (Deferred Tax Asse
Income Taxes (Deferred Tax Assets And Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Deferred tax assets: | ||
20% of net unearned premiums | $ 77,104 | $ 75,406 |
Discounting of loss reserves and salvage and subrogation recoverable for tax purposes | 9,864 | 9,518 |
Write-down of impaired investments | 726 | 857 |
Tax credit carryforward | 47,238 | 36,349 |
Expense accruals | 11,090 | 11,264 |
Other deferred tax assets | 8,828 | 9,596 |
Total gross deferred tax assets | 154,850 | 142,990 |
Deferred tax liabilities: | ||
Deferred policy acquisition costs | (70,289) | (70,617) |
Tax liability on net unrealized gain on securities carried at fair value | (15,612) | (23,095) |
Tax depreciation in excess of book depreciation | (10,446) | (10,742) |
Undistributed earnings of insurance subsidiaries | (3,985) | (4,022) |
Tax amortization in excess of book amortization | (3,030) | (2,514) |
Other deferred tax liabilities | (6,211) | (8,769) |
Total gross deferred tax liabilities | (109,573) | (119,759) |
Net deferred tax assets | $ 45,277 | $ 23,231 |
Income Taxes (Summary Of Unreco
Income Taxes (Summary Of Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Reconciliation of Unrecognized Tax Benefits [Roll Forward] | ||
Balance at January 1 | $ 12,165 | $ 12,612 |
Additions based on tax positions related to the current year | 688 | 932 |
Additions based on tax positions related to prior years | 101 | |
Reductions based on tax positions related to prior years | (1,379) | |
Additions (reductions) as a result of lapse of the applicable statute of limitations | 0 | 0 |
Balance at December 31 | $ 12,954 | $ 12,165 |
Losses And Loss Adjustment Ex75
Losses And Loss Adjustment Expense Reserves (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Unusual or Infrequent Item, or Both [Line Items] | |||
Prior year claims and claim adjustment expense | $ (85,369) | $ (12,658) | $ 3,193 |
Catastrophe [Member] | |||
Unusual or Infrequent Item, or Both [Line Items] | |||
Pre-tax catastrophe losses | $ 27,000 | $ 19,000 | $ 11,000 |
Losses And Loss Adjustment Ex76
Losses And Loss Adjustment Expense Reserves (Activity In The Reserves For Losses And Loss Adjustment Expenses) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | ||||
Gross reserves at January 1 | $ 1,146,688 | $ 1,091,797 | $ 1,038,984 | |
Reissuance recoverable | 13,161 | 14,253 | 14,192 | $ 13,635 |
Net reserves at January 1 | 1,132,435 | 1,077,605 | 1,025,349 | |
Acquisition of WAIC reserves | 0 | 18,677 | 0 | |
Incurred losses and loss adjustment expense related to: | ||||
Current year | 2,269,769 | 2,132,837 | 1,989,315 | |
Prior year claims and claim adjustment expense | 85,369 | 12,658 | (3,193) | |
Total incurred losses and loss adjustment expenses | 2,355,138 | 2,145,495 | 1,986,122 | |
Loss and loss adjustment expense payments related to: | ||||
Current year | 1,508,362 | 1,455,245 | 1,347,967 | |
Prior years | 702,124 | 654,097 | 585,899 | |
Total payments | 2,210,486 | 2,109,342 | 1,933,866 | |
Net reserves at year-end | 1,277,087 | 1,132,435 | 1,077,605 | |
Gross reserves at year-end | $ 1,290,248 | $ 1,146,688 | $ 1,091,797 |
Losses And Loss Adjustment Ex77
Losses And Loss Adjustment Expense Reserves - Incurred and Paid Claims (Details) number_of_claims in Thousands, $ in Thousands | Dec. 31, 2016USD ($)number_of_claims | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2012USD ($) | Dec. 31, 2011USD ($) | Dec. 31, 2010USD ($) | Dec. 31, 2009USD ($) | Dec. 31, 2008USD ($) | Dec. 31, 2007USD ($) |
Claims Development [Line Items] | ||||||||||
Loss and allocated loss adjustment expense reserves, net of reinsurance | $ 1,196,434 | |||||||||
Property insurance product line, automobile [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 14,879,081 | |||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 13,862,037 | |||||||||
All outstanding liabilities before 2007, net of reinsurance | (212) | |||||||||
Loss and allocated loss adjustment expense reserves, net of reinsurance | 1,016,832 | |||||||||
Property insurance product line, homeowners' [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 1,780,518 | |||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 1,667,129 | |||||||||
All outstanding liabilities before 2007, net of reinsurance | 2,661 | |||||||||
Loss and allocated loss adjustment expense reserves, net of reinsurance | 116,050 | |||||||||
Short-duration insurance contracts, accident year 2007 [Member] | Property insurance product line, automobile [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 1,636,065 | $ 1,636,379 | $ 1,635,529 | $ 1,634,127 | $ 1,633,169 | $ 1,633,606 | $ 1,624,875 | $ 1,614,648 | $ 1,610,874 | $ 1,591,217 |
Total of Incurred But Not Reported Liabilities Plus Expected Development on Reported Claims | $ 52 | |||||||||
Cumulative Number of Reported Claims | number_of_claims | 230 | |||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 1,636,204 | 1,635,631 | 1,634,888 | 1,633,178 | 1,628,413 | 1,615,964 | 1,581,001 | 1,496,543 | 1,365,854 | 1,040,933 |
Short-duration insurance contracts, accident year 2007 [Member] | Property insurance product line, homeowners' [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 110,204 | 110,142 | 110,161 | 110,092 | 110,052 | 109,836 | 111,378 | 112,042 | 116,950 | 119,505 |
Total of Incurred But Not Reported Liabilities Plus Expected Development on Reported Claims | $ 42 | |||||||||
Cumulative Number of Reported Claims | number_of_claims | 14 | |||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 110,075 | 110,064 | 109,949 | 109,932 | 109,874 | 109,305 | 108,404 | 104,340 | 100,774 | $ 71,165 |
Short-duration insurance contracts, accident year 2008 [Member] | Property insurance product line, automobile [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 1,466,137 | 1,466,108 | 1,465,623 | 1,463,659 | 1,461,084 | 1,455,858 | 1,442,691 | 1,440,301 | 1,505,732 | |
Total of Incurred But Not Reported Liabilities Plus Expected Development on Reported Claims | $ 82 | |||||||||
Cumulative Number of Reported Claims | number_of_claims | 199 | |||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 1,465,832 | 1,464,763 | 1,463,384 | 1,459,216 | 1,450,172 | 1,418,274 | 1,345,354 | 1,226,787 | 992,844 | |
Short-duration insurance contracts, accident year 2008 [Member] | Property insurance product line, homeowners' [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 139,216 | 139,156 | 139,149 | 138,803 | 138,190 | 139,142 | 138,605 | 139,549 | 146,486 | |
Total of Incurred But Not Reported Liabilities Plus Expected Development on Reported Claims | $ 5 | |||||||||
Cumulative Number of Reported Claims | number_of_claims | 16 | |||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 138,922 | 138,809 | 138,680 | 138,137 | 137,284 | 135,500 | 129,821 | 122,239 | $ 86,954 | |
Short-duration insurance contracts, accident year 2009 [Member] | Property insurance product line, automobile [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 1,372,259 | 1,372,694 | 1,371,779 | 1,365,551 | 1,361,652 | 1,361,116 | 1,349,025 | 1,372,833 | ||
Total of Incurred But Not Reported Liabilities Plus Expected Development on Reported Claims | $ 166 | |||||||||
Cumulative Number of Reported Claims | number_of_claims | 186 | |||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 1,371,956 | 1,370,564 | 1,363,526 | 1,355,210 | 1,326,439 | 1,260,424 | 1,137,807 | 913,340 | ||
Short-duration insurance contracts, accident year 2009 [Member] | Property insurance product line, homeowners' [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 134,478 | 134,597 | 134,718 | 133,121 | 133,087 | 131,680 | 135,000 | 135,889 | ||
Total of Incurred But Not Reported Liabilities Plus Expected Development on Reported Claims | $ (3) | |||||||||
Cumulative Number of Reported Claims | number_of_claims | 17 | |||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 134,301 | 134,378 | 134,381 | 132,180 | 130,928 | 126,591 | 119,306 | $ 86,034 | ||
Short-duration insurance contracts, accident year 2010 [Member] | Property insurance product line, automobile [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 1,386,105 | 1,381,056 | 1,379,336 | 1,374,638 | 1,364,307 | 1,357,750 | 1,367,547 | |||
Total of Incurred But Not Reported Liabilities Plus Expected Development on Reported Claims | $ 390 | |||||||||
Cumulative Number of Reported Claims | number_of_claims | 184 | |||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 1,384,333 | 1,375,799 | 1,365,464 | 1,335,871 | 1,268,142 | 1,143,984 | 908,954 | |||
Short-duration insurance contracts, accident year 2010 [Member] | Property insurance product line, homeowners' [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 159,608 | 160,015 | 160,206 | 160,472 | 160,983 | 157,566 | 165,727 | |||
Total of Incurred But Not Reported Liabilities Plus Expected Development on Reported Claims | $ (17) | |||||||||
Cumulative Number of Reported Claims | number_of_claims | 21 | |||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 158,943 | 158,053 | 156,853 | 155,191 | 149,084 | 137,628 | $ 95,057 | |||
Short-duration insurance contracts, accident year 2011 [Member] | Property insurance product line, automobile [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 1,398,518 | 1,393,878 | 1,388,363 | 1,380,557 | 1,367,000 | 1,343,919 | ||||
Total of Incurred But Not Reported Liabilities Plus Expected Development on Reported Claims | $ 4,069 | |||||||||
Cumulative Number of Reported Claims | number_of_claims | 181 | |||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 1,391,101 | 1,378,920 | 1,347,082 | 1,277,808 | 1,152,459 | 926,983 | ||||
Short-duration insurance contracts, accident year 2011 [Member] | Property insurance product line, homeowners' [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 169,621 | 169,390 | 169,600 | 170,052 | 170,623 | 167,414 | ||||
Total of Incurred But Not Reported Liabilities Plus Expected Development on Reported Claims | $ 325 | |||||||||
Cumulative Number of Reported Claims | number_of_claims | 23 | |||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 168,621 | 167,806 | 166,375 | 162,870 | 153,845 | $ 111,909 | ||||
Short-duration insurance contracts, accident year 2012 [Member] | Property insurance product line, automobile [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 1,426,735 | 1,414,878 | 1,409,104 | 1,408,222 | 1,424,754 | |||||
Total of Incurred But Not Reported Liabilities Plus Expected Development on Reported Claims | $ 4,531 | |||||||||
Cumulative Number of Reported Claims | number_of_claims | 181 | |||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 1,409,911 | 1,372,828 | 1,304,511 | 1,194,648 | 955,647 | |||||
Short-duration insurance contracts, accident year 2012 [Member] | Property insurance product line, homeowners' [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 192,057 | 191,548 | 190,376 | 188,010 | 196,063 | |||||
Total of Incurred But Not Reported Liabilities Plus Expected Development on Reported Claims | $ 585 | |||||||||
Cumulative Number of Reported Claims | number_of_claims | 25 | |||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 190,373 | 188,121 | 182,756 | 175,029 | $ 128,618 | |||||
Short-duration insurance contracts, accident year 2013 [Member] | Property insurance product line, automobile [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 1,458,421 | 1,447,881 | 1,431,058 | 1,448,567 | ||||||
Total of Incurred But Not Reported Liabilities Plus Expected Development on Reported Claims | $ 10,873 | |||||||||
Cumulative Number of Reported Claims | number_of_claims | 185 | |||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 1,413,999 | 1,340,724 | 1,217,906 | 974,445 | ||||||
Short-duration insurance contracts, accident year 2013 [Member] | Property insurance product line, homeowners' [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 186,795 | 188,026 | 188,915 | 191,903 | ||||||
Total of Incurred But Not Reported Liabilities Plus Expected Development on Reported Claims | $ 775 | |||||||||
Cumulative Number of Reported Claims | number_of_claims | 23 | |||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 183,860 | 180,858 | 174,295 | $ 133,528 | ||||||
Short-duration insurance contracts, accident year 2014 [Member] | Property insurance product line, automobile [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 1,473,545 | 1,454,366 | 1,467,175 | |||||||
Total of Incurred But Not Reported Liabilities Plus Expected Development on Reported Claims | $ 32,532 | |||||||||
Cumulative Number of Reported Claims | number_of_claims | 180 | |||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 1,358,472 | 1,231,413 | 967,481 | |||||||
Short-duration insurance contracts, accident year 2014 [Member] | Property insurance product line, homeowners' [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 203,218 | 202,621 | 199,298 | |||||||
Total of Incurred But Not Reported Liabilities Plus Expected Development on Reported Claims | $ 2,993 | |||||||||
Cumulative Number of Reported Claims | number_of_claims | 25 | |||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 194,605 | 186,996 | $ 139,615 | |||||||
Short-duration insurance contracts, accident year 2015 [Member] | Property insurance product line, automobile [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 1,588,443 | 1,551,105 | ||||||||
Total of Incurred But Not Reported Liabilities Plus Expected Development on Reported Claims | $ 90,010 | |||||||||
Cumulative Number of Reported Claims | number_of_claims | 169 | |||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 1,336,223 | 1,040,253 | ||||||||
Short-duration insurance contracts, accident year 2015 [Member] | Property insurance product line, homeowners' [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 234,881 | 234,800 | ||||||||
Total of Incurred But Not Reported Liabilities Plus Expected Development on Reported Claims | $ 9,431 | |||||||||
Cumulative Number of Reported Claims | number_of_claims | 24 | |||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 213,994 | $ 163,196 | ||||||||
Short-duration insurance contracts, accident year 2016 [Member] | Property insurance product line, automobile [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 1,672,853 | |||||||||
Total of Incurred But Not Reported Liabilities Plus Expected Development on Reported Claims | $ 303,353 | |||||||||
Cumulative Number of Reported Claims | number_of_claims | 145 | |||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 1,094,006 | |||||||||
Short-duration insurance contracts, accident year 2016 [Member] | Property insurance product line, homeowners' [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 250,440 | |||||||||
Total of Incurred But Not Reported Liabilities Plus Expected Development on Reported Claims | $ 36,538 | |||||||||
Cumulative Number of Reported Claims | number_of_claims | 23 | |||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 173,435 |
Losses And Loss Adjustment Ex78
Losses And Loss Adjustment Expense Reserves - Average Annual Percentage Payout of Incurred Claims by Age (Details) | Dec. 31, 2016 |
Property insurance product line, automobile [Member] | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Short-duration insurance contracts, historical claims duration, year one | 66.00% |
Short-duration insurance contracts, historical claims duration, year two | 17.10% |
Short-duration insurance contracts, historical claims duration, year three | 8.50% |
Short-duration insurance contracts, historical claims duration, year four | 4.90% |
Short-duration insurance contracts, historical claims duration, year five | 2.20% |
Short-duration insurance contracts, historical claims duration, year six | 0.70% |
Short-duration insurance contracts, historical claims duration, year seven | 0.40% |
Short-duration insurance contracts, historical claims duration, year eight | 0.10% |
Short-duration insurance contracts, historical claims duration, year nine | 0.10% |
Short-duration insurance contracts, historical claims duration, year ten | 0.00% |
Property insurance product line, homeowners' [Member] | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Short-duration insurance contracts, historical claims duration, year one | 66.10% |
Short-duration insurance contracts, historical claims duration, year two | 24.30% |
Short-duration insurance contracts, historical claims duration, year three | 4.60% |
Short-duration insurance contracts, historical claims duration, year four | 3.00% |
Short-duration insurance contracts, historical claims duration, year five | 1.00% |
Short-duration insurance contracts, historical claims duration, year six | 0.70% |
Short-duration insurance contracts, historical claims duration, year seven | 0.20% |
Short-duration insurance contracts, historical claims duration, year eight | 0.00% |
Short-duration insurance contracts, historical claims duration, year nine | 0.10% |
Short-duration insurance contracts, historical claims duration, year ten | 0.00% |
Losses And Loss Adjustment Ex79
Losses And Loss Adjustment Expense Reserves - Reconciliation of the Disclosure of Incurred and Paid Claims Development to the Loss and Loss Adjustment Expense Reserves (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Net outstanding liabilities | $ 1,196,434 | |||
Reinsurance recoverable on unpaid claims | 13,160 | |||
Insurance lines other than short-duration | 1,480 | |||
Unallocated claims adjustment expenses | 79,174 | |||
Unallocated claims adjustment expenses, aggregate reconciling items | 80,654 | |||
Total gross loss and loss adjustment expense reserves | 1,290,248 | $ 1,146,688 | $ 1,091,797 | $ 1,038,984 |
Property insurance product line, automobile [Member] | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Net outstanding liabilities | 1,016,832 | |||
Reinsurance recoverable on unpaid claims | 12,601 | |||
Property insurance product line, homeowners' [Member] | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Net outstanding liabilities | 116,050 | |||
Reinsurance recoverable on unpaid claims | 199 | |||
Property Insurance Product Line, WAIC Automobile [Member] | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Net outstanding liabilities | 12,232 | |||
Other Short-duration Insurance Product Line [Member] | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Net outstanding liabilities | 51,320 | |||
Reinsurance recoverable on unpaid claims | $ 360 |
Dividends (Dividends Paid In To
Dividends (Dividends Paid In Total And Per Share) (Details) - USD ($) $ / shares in Units, $ in Thousands | Feb. 03, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Dividends [Abstract] | ||||
Total paid | $ 137,201 | $ 136,386 | $ 135,496 | |
Per share (in dollars per share) | $ 2.4825 | $ 2.4725 | $ 2.4625 | |
Maximum dividend payable without prior permission of DOI of states domicile | $ 144,000 | |||
Payments of ordinary dividends | $ 111,000 | $ 133,000 | $ 225,000 | |
Subsequent event [Member] | ||||
Subsequent Event [Line Items] | ||||
Quarterly dividend declared (in dollars per share) | $ 0.6225 |
Statutory Balances and Accoun81
Statutory Balances and Accounting Practices (Schedule Of Statutory Net Income And Capital And Surplus) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Statutory Balances And Accounting Practices [Abstract] | ||||
Statutory net income | [1] | $ 82,359 | $ 123,984 | $ 155,654 |
Statutory capital and surplus | $ 1,441,571 | $ 1,451,950 | $ 1,438,281 | |
RBC authorized control level | 375.00% | 375.00% | 375.00% | |
Minimum RBC authorized control level | 200.00% | 200.00% | 200.00% | |
[1] | Statutory net income reflects differences from GAAP net income, including changes in the fair value of the investment portfolio as a result of the application of the fair value option. |
Profit Sharing Plan and Annua82
Profit Sharing Plan and Annual Cash Bonuses (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Deferred Compensation Arrangements [Abstract] | |||
Maximum percentage of compensation employee is allowed to contribute | 15.00% | ||
Matching contributions | $ 8.2 | $ 8.5 | $ 8 |
Bonus expense, cash | $ 16.8 | $ 20.7 | $ 19.1 |
Share-Based Compensation (Narra
Share-Based Compensation (Narrative) (Details) - USD ($) $ in Thousands | Jan. 01, 2008 | Feb. 29, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2007 | Feb. 28, 2015 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Options granted during period | 0 | 0 | 0 | ||||
Intrinsic value of stock options exercised | $ 591 | $ 303 | $ 1,160 | ||||
Total fair value of stock options vested | 142 | $ 142 | $ 142 | ||||
Stock Options [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Unrecognized compensation cost | $ 60 | ||||||
Weighted-average period of recognition, in years | 6 months | ||||||
Restricted Stock And Restricted Stock Unit [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Target restricted stock granted during period | 3,000 | 4,000 | 4,000 | ||||
RSUs vested during period | 78,500 | 0 | 0 | ||||
Restricted Stock [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
RSUs vested during period | 146,896 | ||||||
Two Thousand Fifteen Plan [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Common stock authorized for issuance | 4,900,000 | ||||||
2005 Plan [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Percentage of stock option exercisable per year | 25.00% | 20.00% | |||||
Stock option expiration period (in years) | 10 years | ||||||
Common Stock [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares issued during period | 88,074 | ||||||
Shares withheld for payroll taxes | 58,822 | ||||||
Additional Paid-in Capital [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Reclassification of restricted stock units from equity to liability award | $ 3,435 | $ 0 | $ 0 |
Share-Based Compensation (Share
Share-Based Compensation (Share-based Compensation Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Cash received from stock option exercises | $ 1,505 | $ 2,111 | $ 6,247 |
Share-based compensation expense | 142 | 5,208 | 4,112 |
Excess tax benefits related to share-based compensation | $ 913 | $ 27 | $ 148 |
Share-Based Compensation (Stock
Share-Based Compensation (Stock Option Valuation Assumptions) (Details) - Stock Options [Member] | 12 Months Ended |
Dec. 31, 2013$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Weighted-average grant-date fair value | $ 7.11 |
Weighted-average expected volatility | 33.17% |
Expected term | 72 months |
Minimum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected volatility | 33.16% |
Risk-free interest rate | 0.88% |
Expected dividend yield | 5.40% |
Maximum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected volatility | 33.18% |
Risk-free interest rate | 1.60% |
Expected dividend yield | 5.76% |
Share-Based Compensation (Summa
Share-Based Compensation (Summary Of Stock Option Activity) (Details) $ / shares in Units, $ in Thousands | 12 Months Ended |
Dec. 31, 2016USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Outstanding Shares, Beginning balance | shares | 168,000 |
Granted, Shares | shares | 0 |
Exercised, Shares | shares | (62,500) |
Cancelled or expired, Shares | shares | (20,000) |
Outstanding Shares, Ending balance | shares | 85,500 |
Exercisable, Shares | shares | 65,500 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | |
Outstanding, Weighted-Average Exercise Price, Beginning balance (in dollars per share) | $ / shares | $ 48.14 |
Granted, Weighted-Average Exercise Price (in dollars per share) | $ / shares | 0 |
Exercised, Weighted-Average Exercise Price (in dollars per share) | $ / shares | 46.12 |
Canceled or Expired, Weighted-Average Exercise Price (in dollars per share) | $ / shares | 57.10 |
Outstanding, Weighted-Average Exercise Price, Ending balance (in dollars per share) | $ / shares | 47.52 |
Exercisable, Weighted-Average Exercise Price (in dollars per share) | $ / shares | $ 48.73 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |
Outstanding, Weighted-Average Remaining Contractual Term (Years) | 3 years 1 month 6 days |
Exercisable, Weighted-Average Remaining Contractual Term (Years) | 2 years 1 month 6 days |
Outstanding, Aggregate Intrinsic Value | $ | $ 1,085 |
Exercisable, Aggregate Intrinsic Value | $ | $ 752 |
Share-Based Compensation (Sto87
Share-Based Compensation (Stock Option Awards) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Options Outstanding, Number of Options | 85,500 | 168,000 | |
Options Outstanding, Weighted-Avg. Remaining Contractual Life (Years) | 3 years 1 month 6 days | ||
Options Outstanding, Weighted-Avg. Exercise Price (in dollars per share) | $ 47.52 | $ 48.14 | |
Options Exercisable, Number of Options | 65,500 | ||
Options Exercisable, Weighted-Avg. Exercise Price (in dollars per share) | $ 48.73 | ||
Options granted during period | 0 | 0 | 0 |
Total fair value of stock options vested | $ 142 | $ 142 | $ 142 |
$33.61-$45.30 [Member] | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Options Outstanding, Number of Options | 41,000 | ||
Options Outstanding, Weighted-Avg. Remaining Contractual Life (Years) | 5 years 8 months 12 days | ||
Options Outstanding, Weighted-Avg. Exercise Price (in dollars per share) | $ 42.44 | ||
Options Exercisable, Number of Options | 21,000 | ||
Options Exercisable, Weighted-Avg. Exercise Price (in dollars per share) | $ 41.40 | ||
Range of Exercise Prices, lower limit (in dollars per share) | 33.61 | ||
Range of Exercise Prices, upper limit (in dollars per share) | $ 45.30 | ||
$47.61-$50.35 [Member] | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Options Outstanding, Number of Options | 15,000 | ||
Options Outstanding, Weighted-Avg. Remaining Contractual Life (Years) | 1 year 3 months 18 days | ||
Options Outstanding, Weighted-Avg. Exercise Price (in dollars per share) | $ 48.52 | ||
Options Exercisable, Number of Options | 15,000 | ||
Options Exercisable, Weighted-Avg. Exercise Price (in dollars per share) | $ 48.52 | ||
Range of Exercise Prices, lower limit (in dollars per share) | 47.61 | ||
Range of Exercise Prices, upper limit (in dollars per share) | $ 50.35 | ||
$51.51-$54.93 [Member] | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Options Outstanding, Number of Options | 29,500 | ||
Options Outstanding, Weighted-Avg. Remaining Contractual Life (Years) | 4 months 24 days | ||
Options Outstanding, Weighted-Avg. Exercise Price (in dollars per share) | $ 54.06 | ||
Options Exercisable, Number of Options | 29,500 | ||
Options Exercisable, Weighted-Avg. Exercise Price (in dollars per share) | $ 54.06 | ||
Range of Exercise Prices, lower limit (in dollars per share) | 51.51 | ||
Range of Exercise Prices, upper limit (in dollars per share) | $ 54.93 |
Share-Based Compensation (Sum88
Share-Based Compensation (Summary of Grants) (Details) - shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Three-year performance period ending December 31, | 2,018 | 2,017 | 2,016 |
Vesting shares, target (net of forfeited) | 93,250 | 95,750 | 82,000 |
Vesting shares, maximum (net of forfeited) | 174,844 | 179,531 | 153,750 |
Share-Based Compensation (Sum89
Share-Based Compensation (Summary Of Vested And Unvested RSU) (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Granted, shares | 93,250 | 95,750 | 82,000 |
Restricted Stock And Restricted Stock Unit [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Outstanding shares, Beginning balance | 263,250 | 167,000 | 170,500 |
Granted, shares | 95,750 | 100,250 | 93,500 |
Vested, shares | (78,500) | 0 | 0 |
Forfeited/canceled, shares | (9,500) | (4,000) | (16,500) |
Expired, shares | 0 | 0 | (80,500) |
Outstanding shares, Ending balance | 271,000 | 263,250 | 167,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |||
Outstanding, Weighted-Average Fair Value per Share, Beginning (in dollars per share) | $ 45.94 | $ 41.15 | $ 39.64 |
Granted, Weighted-Average Fair Value per Share (in dollars per share) | 53.49 | 53.80 | 45.17 |
Vested, Weighted-Average Fair Value per Share (in dollars per share) | 36.82 | 0 | 0 |
Forfeited/Canceled, Weighted-Average Fair Value per Share (in dollars per share) | 50.46 | 43.10 | 43.99 |
Expired, Weighted-Average Fair Value per Share (in dollars per share) | 0 | 0 | 44.01 |
Outstanding, Weighted-Average Fair Value per Share, Ending (in dollars per share) | $ 51.09 | $ 45.94 | $ 41.15 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income (Numerator) | |||||||||||
Income available to common stockholders, Basic | $ 73,044 | $ 74,479 | $ 177,949 | ||||||||
Income available to common stockholders after assumed conversions, Diluted | $ 73,044 | $ 74,479 | $ 177,949 | ||||||||
Weighted Shares (Denominator) | |||||||||||
Weighted shares, basic (in shares) | 55,249 | 55,157 | 55,008 | ||||||||
Weighted shares, diluted (in shares) | 55,302 | 55,209 | 55,020 | ||||||||
Earnings Per Share Basic and Diluted, Per Share Amounts [Abstract] | |||||||||||
Basic (in dollars per share) | $ (0.47) | $ 0.49 | $ 0.88 | $ 0.42 | $ 0.42 | $ 0.28 | $ 0.17 | $ 0.47 | $ 1.32 | $ 1.35 | $ 3.23 |
Diluted (in dollars per share) | $ (0.47) | $ 0.49 | $ 0.88 | $ 0.42 | $ 0.42 | $ 0.28 | $ 0.17 | $ 0.47 | $ 1.32 | $ 1.35 | $ 3.23 |
Common Stock [Member] | |||||||||||
Earnings Per Share Basic and Diluted, Per Share Amounts [Abstract] | |||||||||||
Potentially dilutive securities (in shares) | 28 | 67 | 252 | ||||||||
Stock Options [Member] | |||||||||||
Income (Numerator) | |||||||||||
Effect of dilutive securities: Options | $ 0 | $ 0 | $ 0 | ||||||||
Weighted Shares (Denominator) | |||||||||||
Effect of dilutive securities: options (in shares) | 11 | 15 | 12 | ||||||||
Restricted Stock Units (RSUs) [Member] | |||||||||||
Income (Numerator) | |||||||||||
Effect of dilutive securities: Options | $ 0 | $ 0 | $ 0 | ||||||||
Weighted Shares (Denominator) | |||||||||||
Effect of dilutive securities: options (in shares) | 42 | 37 | 0 |
Commitments and Contingencies91
Commitments and Contingencies (Narrative) (Details) - USD ($) $ in Millions | Jan. 07, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Commitments and Contingencies Disclosure [Abstract] | ||||
Deferred rent | $ 2.4 | $ 3.6 | ||
Total rent expense | 19.7 | $ 16 | $ 14.6 | |
Exposure to earthquake loss | $ 60.2 | |||
Litigation Settlement, Expense | $ 27.6 |
Commitments and Contingencies92
Commitments and Contingencies (Future Minimum Commitments For Operating Leases) (Details) $ in Thousands | Dec. 31, 2016USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,017 | $ 14,647 |
2,018 | 6,784 |
2,019 | 2,713 |
2,020 | 1,945 |
2,021 | 861 |
Thereafter | $ 148 |
Quarterly Financial Informati93
Quarterly Financial Information (Unaudited) (Summary Of Quarterly Financial Information) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Quarterly Financial Data [Abstract] | |||||||||||
Net premiums earned | $ 794,517 | $ 790,850 | $ 779,321 | $ 767,085 | $ 760,094 | $ 745,520 | $ 731,546 | $ 720,737 | $ 3,131,773 | $ 2,957,897 | $ 2,796,195 |
Change in fair value of investments pursuant to the fair value option | (67,332) | (21,132) | 37,127 | 18,531 | 2,474 | (18,538) | (40,783) | (4,884) | (32,805) | (61,731) | 43,759 |
Income before income taxes | (51,270) | 31,625 | 64,335 | 26,034 | 23,930 | 12,267 | 4,511 | 29,859 | 70,724 | 70,567 | 247,425 |
Net income | $ (26,082) | $ 26,930 | $ 48,873 | $ 23,323 | $ 23,405 | $ 15,270 | $ 9,639 | $ 26,165 | $ 73,044 | $ 74,479 | $ 177,949 |
Basic (in dollars per share) | $ (0.47) | $ 0.49 | $ 0.88 | $ 0.42 | $ 0.42 | $ 0.28 | $ 0.17 | $ 0.47 | $ 1.32 | $ 1.35 | $ 3.23 |
Diluted (in dollars per share) | (0.47) | 0.49 | 0.88 | 0.42 | 0.42 | 0.28 | 0.17 | 0.47 | 1.32 | 1.35 | $ 3.23 |
Dividends paid per share | $ 0.6225 | $ 0.6200 | $ 0.6200 | $ 0.62 | $ 0.62 | $ 0.6175 | $ 0.6175 | $ 0.6175 | $ 0.6225 | $ 0.62 |
Quarterly Financial Informati94
Quarterly Financial Information (Unaudited) (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Quarterly Financial Data [Abstract] | ||||
Net realized investment losses (gains) | $ 8,200 | $ 34,255 | $ 83,807 | $ (81,184) |
Acquisition (Details)
Acquisition (Details) - USD ($) $ in Millions | Jan. 12, 2015 | Jan. 02, 2015 | Dec. 31, 2016 |
Subsequent Event [Line Items] | |||
Escrow deposit recovery | $ 2 | ||
Workmen's Auto Insurance Company [Member] | |||
Subsequent Event [Line Items] | |||
Consideration paid in cash | $ 8 | ||
Amount held in escrow | $ 2 | ||
Term for escrow security payment | 3 years | ||
Capital contribution amount | $ 15 |
Segment Information - Summary o
Segment Information - Summary of Operating Results by Segment (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016USD ($)State | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2016USD ($)StateSubsidiary | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Segment Reporting [Abstract] | |||||||||||
Number of insurance companies | Subsidiary | 14 | ||||||||||
Number of states in which company operates | State | 11 | 11 | |||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net premiums earned | $ 794,517 | $ 790,850 | $ 779,321 | $ 767,085 | $ 760,094 | $ 745,520 | $ 731,546 | $ 720,737 | $ 3,131,773 | $ 2,957,897 | $ 2,796,195 |
Losses and loss adjustment expenses | 2,355,138 | 2,145,495 | 1,986,122 | ||||||||
Underwriting expenses | 797,900 | 790,000 | 775,600 | ||||||||
Underwriting (loss) gain | (21,200) | 22,400 | 34,500 | ||||||||
Net investment income | 121,871 | 126,299 | 125,723 | ||||||||
Net realized investment (losses) gains | (8,200) | (34,255) | (83,807) | 81,184 | |||||||
Other | 8,294 | 8,911 | 8,671 | ||||||||
Interest Expense | (3,962) | (3,168) | (2,637) | ||||||||
Pre-tax income | (51,270) | 31,625 | 64,335 | 26,034 | 23,930 | 12,267 | 4,511 | 29,859 | 70,724 | 70,567 | 247,425 |
Net income | $ (26,082) | $ 26,930 | $ 48,873 | $ 23,323 | $ 23,405 | $ 15,270 | $ 9,639 | $ 26,165 | 73,044 | 74,479 | 177,949 |
Property and Casualty Lines [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net premiums earned | 3,089,900 | 2,906,600 | 2,737,300 | ||||||||
Losses and loss adjustment expenses | 2,333,200 | 2,117,300 | 1,951,400 | ||||||||
Underwriting expenses | 780,400 | 770,000 | 749,700 | ||||||||
Underwriting (loss) gain | (23,700) | 19,300 | 36,200 | ||||||||
Other Segments [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net premiums earned | 41,900 | 51,300 | 58,900 | ||||||||
Losses and loss adjustment expenses | 21,900 | 28,200 | 34,700 | ||||||||
Underwriting expenses | 17,500 | 20,000 | 25,900 | ||||||||
Underwriting (loss) gain | $ 2,500 | $ 3,100 | $ (1,700) |
Segment Information - Summary97
Segment Information - Summary of Premiums Written and Earned by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Segment Reporting Information [Line Items] | |||||||||||
Net premiums earned | $ 794,517 | $ 790,850 | $ 779,321 | $ 767,085 | $ 760,094 | $ 745,520 | $ 731,546 | $ 720,737 | $ 3,131,773 | $ 2,957,897 | $ 2,796,195 |
Direct premiums written | 3,172,000 | 3,012,900 | 2,853,200 | ||||||||
Private passenger automobile [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net premiums earned | 2,435,700 | 2,308,600 | 2,203,000 | ||||||||
Direct premiums written | 2,452,700 | 2,345,800 | 2,223,100 | ||||||||
Homeowners [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net premiums earned | 414,000 | 379,700 | 347,900 | ||||||||
Direct premiums written | 436,900 | 402,200 | 374,500 | ||||||||
Commercial automobile [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net premiums earned | 161,300 | 144,400 | 121,800 | ||||||||
Direct premiums written | 166,100 | 153,500 | 135,900 | ||||||||
Other insurance product line [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net premiums earned | 120,800 | 125,200 | 123,500 | ||||||||
Direct premiums written | 116,300 | 111,400 | 119,700 | ||||||||
Property and Casualty Lines [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net premiums earned | 3,089,900 | 2,906,600 | 2,737,300 | ||||||||
Direct premiums written | 3,144,700 | 2,983,100 | 2,808,900 | ||||||||
Property and Casualty Lines [Member] | Private passenger automobile [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net premiums earned | 2,435,700 | 2,308,600 | 2,203,000 | ||||||||
Direct premiums written | 2,452,700 | 2,345,800 | 2,223,100 | ||||||||
Property and Casualty Lines [Member] | Homeowners [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net premiums earned | 414,000 | 379,700 | 347,900 | ||||||||
Direct premiums written | 436,900 | 402,200 | 374,500 | ||||||||
Property and Casualty Lines [Member] | Commercial automobile [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net premiums earned | 161,300 | 144,400 | 121,800 | ||||||||
Direct premiums written | 166,100 | 153,500 | 135,900 | ||||||||
Property and Casualty Lines [Member] | Other insurance product line [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net premiums earned | 78,900 | 73,900 | 64,600 | ||||||||
Direct premiums written | 89,000 | 81,600 | 75,400 | ||||||||
Other Segments [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net premiums earned | 41,900 | 51,300 | 58,900 | ||||||||
Direct premiums written | 27,300 | 29,800 | 44,300 | ||||||||
Other Segments [Member] | Private passenger automobile [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net premiums earned | 0 | 0 | 0 | ||||||||
Direct premiums written | 0 | 0 | 0 | ||||||||
Other Segments [Member] | Homeowners [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net premiums earned | 0 | 0 | 0 | ||||||||
Direct premiums written | 0 | 0 | 0 | ||||||||
Other Segments [Member] | Commercial automobile [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net premiums earned | 0 | 0 | 0 | ||||||||
Direct premiums written | 0 | 0 | 0 | ||||||||
Other Segments [Member] | Other insurance product line [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net premiums earned | 41,900 | 51,300 | 58,900 | ||||||||
Direct premiums written | $ 27,300 | $ 29,800 | $ 44,300 |
Summary Of Investments Other 98
Summary Of Investments Other Than Investments In Related Parties (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost | $ 3,502,880 | $ 3,303,156 |
Fair value | 3,547,560 | 3,380,642 |
Amounts in the balance sheet | 3,547,560 | 3,380,642 |
Fixed Maturity Securities [Member] | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost | 2,795,410 | 2,804,275 |
Fair value | 2,814,553 | 2,880,003 |
Amounts in the balance sheet | 2,814,554 | 2,880,003 |
Fixed Maturity Securities [Member] | U.S. Government Bonds And Agencies [Member] | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost | 12,288 | 22,542 |
Fair value | 12,275 | 22,507 |
Amounts in the balance sheet | 12,275 | 22,507 |
Fixed Maturity Securities [Member] | Municipal Securities [Member] | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost | 2,432,181 | 2,417,046 |
Fair value | 2,449,292 | 2,505,039 |
Amounts in the balance sheet | 2,449,292 | 2,505,039 |
Fixed Maturity Securities [Member] | Collateralized Mortgage Backed Securities [Member] | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost | 39,082 | 49,639 |
Fair value | 39,777 | 49,839 |
Amounts in the balance sheet | 39,778 | 49,839 |
Fixed Maturity Securities [Member] | Corporate Debt Securities [Member] | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost | 189,780 | 255,606 |
Fair value | 189,688 | 243,372 |
Amounts in the balance sheet | 189,688 | 243,372 |
Fixed Maturity Securities [Member] | Collateralized Debt Obligations [Member] | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost | 85,429 | 50,710 |
Fair value | 86,525 | 50,548 |
Amounts in the balance sheet | 86,525 | 50,548 |
Fixed Maturity Securities [Member] | Other asset-backed securities [Member] | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost | 36,650 | 8,732 |
Fair value | 36,996 | 8,698 |
Amounts in the balance sheet | 36,996 | 8,698 |
Equity Securities [Member] | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost | 331,770 | 313,528 |
Fair value | 357,327 | 315,362 |
Amounts in the balance sheet | 357,326 | 315,362 |
Equity Securities [Member] | Common Stock [Member] | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost | 286,503 | 275,479 |
Fair value | 316,450 | 280,263 |
Amounts in the balance sheet | 316,449 | 280,263 |
Equity Securities [Member] | Nonredeemable Preferred Stock [Member] | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost | 32,436 | 25,161 |
Fair value | 31,809 | 24,668 |
Amounts in the balance sheet | 31,809 | 24,668 |
Equity Securities [Member] | Private Credit Fund [Member] | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost | 12,831 | 12,888 |
Fair value | 9,068 | 10,431 |
Amounts in the balance sheet | 9,068 | 10,431 |
Short-term Investments [Member] | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost | 375,700 | 185,353 |
Fair value | 375,680 | 185,277 |
Amounts in the balance sheet | $ 375,680 | $ 185,277 |
Condensed Financial Informati99
Condensed Financial Information of Registrant (Schedule Of Condensed Financial Information Of Registrant, Balance Sheets) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Investments, at fair value: | ||||
Fixed maturity securities | $ 2,814,553 | $ 2,880,003 | ||
Equity securities | 357,327 | 315,362 | ||
Short-term investments | 375,680 | 185,277 | ||
Total investments | 3,547,560 | 3,380,642 | ||
Cash | 220,318 | 264,221 | $ 289,907 | $ 266,508 |
Accrued investment income | 41,205 | 42,747 | ||
Current income taxes | 0 | 9,041 | ||
Deferred income taxes | 45,277 | 23,231 | ||
Other assets | 25,414 | 16,826 | ||
Total assets | 4,788,718 | 4,628,645 | ||
Liabilities | ||||
Notes payable | 320,000 | 290,000 | ||
Accounts payable and accrued expenses | 112,334 | 122,571 | ||
Other liabilities | 229,335 | 199,187 | ||
Total liabilities | 3,036,316 | 2,807,760 | ||
Shareholders’ equity: | ||||
Common stock | 95,529 | 90,985 | ||
Additional paid-in capital | 0 | 8,870 | ||
Retained earnings | 1,656,873 | 1,721,030 | ||
Total shareholders’ equity | 1,752,402 | 1,820,885 | 1,875,446 | |
Total liabilities and shareholders’ equity | 4,788,718 | 4,628,645 | ||
Amortized cost on fixed maturities trading investments | 2,795,410 | 2,804,275 | ||
Cost - equity security trading investments | 331,770 | 313,528 | ||
Cost - short-term investments | 375,700 | 185,353 | ||
Parent Company [Member] | ||||
Investments, at fair value: | ||||
Fixed maturity securities | 1,605 | 571 | ||
Equity securities | 122,717 | 127,572 | ||
Short-term investments | 629 | 1,144 | ||
Investment in subsidiaries | 1,810,663 | 1,819,426 | ||
Total investments | 1,935,614 | 1,948,713 | ||
Cash | 11,786 | 20,139 | $ 52,326 | $ 46,332 |
Accrued investment income | 189 | 208 | ||
Amounts receivable from affiliates | 226 | 220 | ||
Current income taxes | 0 | 8,894 | ||
Deferred income taxes | 2,702 | 10,524 | ||
Income tax receivable from affiliates | 35,237 | 5,917 | ||
Other assets | 414 | 2,981 | ||
Total assets | 1,986,168 | 1,997,596 | ||
Liabilities | ||||
Notes payable | 180,000 | 150,000 | ||
Accounts payable and accrued expenses | 348 | 0 | ||
Amounts payable to affiliates | 36 | 25 | ||
Income tax payable to affiliates | 39,539 | 26,439 | ||
Current income taxes | 10,200 | 0 | ||
Other liabilities | 3,643 | 247 | ||
Total liabilities | 233,766 | 176,711 | ||
Shareholders’ equity: | ||||
Common stock | 95,529 | 90,985 | ||
Additional paid-in capital | 0 | 8,870 | ||
Retained earnings | 1,656,873 | 1,721,030 | ||
Total shareholders’ equity | 1,752,402 | 1,820,885 | ||
Total liabilities and shareholders’ equity | 1,986,168 | 1,997,596 | ||
Amortized cost on fixed maturities trading investments | 1,609 | 557 | ||
Cost - equity security trading investments | 113,943 | 131,217 | ||
Cost - short-term investments | $ 629 | $ 1,144 |
Condensed Financial Informat100
Condensed Financial Information of Registrant (Schedule Of Condensed Financial Information Of Registrant, Statements Of Operations) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Revenues: | |||||||||||
Net investment income | $ 121,871 | $ 126,299 | $ 125,723 | ||||||||
Net realized investment (losses) gains | $ (8,200) | (34,255) | (83,807) | 81,184 | |||||||
Other | 8,294 | 8,911 | 8,671 | ||||||||
Total revenues | 3,227,683 | 3,009,300 | 3,011,773 | ||||||||
Expenses: | |||||||||||
Other operating expenses | 235,314 | 250,839 | 249,381 | ||||||||
Interest | 3,962 | 3,168 | 2,637 | ||||||||
Total expenses | 3,156,959 | 2,938,733 | 2,764,348 | ||||||||
Pre-tax income | $ (51,270) | $ 31,625 | $ 64,335 | $ 26,034 | 23,930 | $ 12,267 | $ 4,511 | $ 29,859 | 70,724 | 70,567 | 247,425 |
Income tax expense (benefit) | 2,320 | 3,912 | (69,476) | ||||||||
Net income | $ (26,082) | $ 26,930 | $ 48,873 | $ 23,323 | $ 23,405 | $ 15,270 | $ 9,639 | $ 26,165 | 73,044 | 74,479 | 177,949 |
Parent Company [Member] | |||||||||||
Revenues: | |||||||||||
Net investment income | 4,032 | 4,314 | 4,478 | ||||||||
Net realized investment (losses) gains | 6,062 | (7,026) | (9,428) | ||||||||
Other | 17 | 0 | 0 | ||||||||
Total revenues | 10,111 | (2,712) | (4,950) | ||||||||
Expenses: | |||||||||||
Other operating expenses | 2,673 | 7,526 | 5,971 | ||||||||
Interest | 2,690 | 2,127 | 1,746 | ||||||||
Total expenses | 5,363 | 9,653 | 7,717 | ||||||||
Pre-tax income | 4,748 | (12,365) | (12,667) | ||||||||
Income tax expense (benefit) | (8,514) | 4,708 | 100 | ||||||||
Loss before equity in net income of subsidiaries | (3,766) | (7,657) | (12,567) | ||||||||
Equity in net income of subsidiaries | 73,864 | 82,136 | 190,516 | ||||||||
Net income | $ 70,098 | $ 74,479 | $ 177,949 |
Condensed Financial Informat101
Condensed Financial Information of Registrant (Schedule Of Condensed Financial Information Of Registrant, Statements Of Cash Flow) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Cash flows from operating activities: | |||
Net cash provided by (used in) operating activities | $ 287,473 | $ 190,244 | $ 246,535 |
Equity securities available for sale in nature | |||
Purchases | (1,077,638) | (965,701) | (542,494) |
Sales | 696,138 | 805,417 | 745,058 |
(Decrease) in payable for securities, net | 29,958 | (1,387) | 9,294 |
Business acquisition, net of cash acquired | 0 | 7,771 | 0 |
Other, net | 3,605 | 2,473 | 3,472 |
Net cash used in investing activities | (226,720) | (81,682) | (194,035) |
Cash flows from financing activities: | |||
Dividends paid to shareholders | (137,201) | (136,386) | (135,496) |
Excess tax benefits related to share-based compensation | 913 | 27 | 148 |
Proceeds from stock options exercised | 1,632 | 2,111 | 6,247 |
Proceeds from bank loan | 30,000 | 0 | 100,000 |
Net cash used in financing activities | (104,656) | (134,248) | (29,101) |
Net increase (decrease) in cash | (43,903) | (25,686) | 23,399 |
Cash: | |||
Beginning of year | 264,221 | 289,907 | 266,508 |
End of year | 220,318 | 264,221 | 289,907 |
SUPPLEMENTAL CASH FLOW DISCLOSURE | |||
Interest paid | 3,531 | 2,989 | 2,543 |
Income taxes (refunded) | (183) | ||
Income taxes paid | 31,390 | 61,139 | |
Parent Company [Member] | |||
Cash flows from operating activities: | |||
Net cash provided by (used in) operating activities | 526 | 548 | (3,434) |
Cash flows from investing activities: | |||
Capital contribution to subsidiaries | (30,125) | (90,125) | (30,125) |
Distributions received from special purpose entities | 4,898 | 8,883 | 6,756 |
Dividends received from subsidiaries | 110,800 | 133,000 | 225,000 |
Purchases of fixed maturity securities available for sale in nature | (1,060) | (571) | 0 |
Equity securities available for sale in nature | |||
Purchases | (64,807) | (146,236) | (254,572) |
Sales | 73,942 | 192,005 | 90,422 |
(Decrease) in payable for securities, net | 0 | 0 | (2,489) |
Net decrease in short-term investments | (515) | (8,612) | (1,346) |
Business acquisition, net of cash acquired | 0 | (6,000) | |
Other, net | 1,614 | 1,945 | 2,191 |
Net cash used in investing activities | 95,777 | 101,513 | 38,529 |
Cash flows from financing activities: | |||
Dividends paid to shareholders | (137,201) | (136,386) | (135,496) |
Excess tax benefits related to share-based compensation | 913 | 27 | 148 |
Proceeds from stock options exercised | 1,632 | 2,111 | 6,247 |
Proceeds from bank loan | 30,000 | 0 | 100,000 |
Net cash used in financing activities | (104,656) | (134,248) | (29,101) |
Net increase (decrease) in cash | (8,353) | (32,187) | 5,994 |
Cash: | |||
Beginning of year | 20,139 | 52,326 | 46,332 |
End of year | 11,786 | 20,139 | 52,326 |
SUPPLEMENTAL CASH FLOW DISCLOSURE | |||
Interest paid | 2,397 | 2,153 | 1,757 |
Income taxes (refunded) | $ (339) | ||
Income taxes paid | $ 1,807 | $ 2,112 |
Condensed Financial Informat102
Condensed Financial Information of Registrant Condensed Financial Information of Registrant (Narratives) (Details) - USD ($) | Jan. 12, 2015 | Jan. 02, 2015 | Feb. 13, 2014 | Aug. 09, 2013 | Jul. 02, 2013 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 03, 2015 |
Condensed Financial Statements, Captions [Line Items] | |||||||||
Proceeds from special purpose investment vehicles | $ 4,900,000 | $ 8,900,000 | |||||||
Proceeds from dividends received | 111,000,000 | 133,000,000 | $ 225,000,000 | ||||||
Capital contributions to subsidiaries | 30,125,000 | 90,125,000 | $ 30,125,000 | ||||||
Escrow deposit recovery | 2,000,000 | ||||||||
Loan maximum borrowing capacity | $ 250,000,000 | ||||||||
Revolving credit facility term | 5 years | ||||||||
Credit facility | 180,000,000 | ||||||||
Revolving Credit Facility [Member] | |||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||
Loan maximum borrowing capacity | $ 200,000,000 | 250,000,000 | $ 250,000,000 | ||||||
Revolving credit facility term | 5 years | ||||||||
Credit facility | $ 180,000,000 | ||||||||
Interest rate at period end | 1.73% | ||||||||
Workmen's Auto Insurance Company [Member] | |||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||
Consideration paid in cash | $ 8,000,000 | ||||||||
Amount held in escrow | $ 2,000,000 | ||||||||
Term for escrow security payment | 3 years | ||||||||
Capital contribution amount | $ 15,000,000 | ||||||||
Mcc [Member] | |||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||
Credit facility | $ 120,000,000 | ||||||||
Bank loan | 20,000,000 | ||||||||
Municipal bonds, fair value | 175,000,000 | ||||||||
Total borrowing guaranteed | 140,000,000 | ||||||||
Swap [Member] | FFL [Member] | |||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||
Swap agreement collateral | 30,000,000 | ||||||||
Notional amount | $ 108,000,000 | $ 95,000,000 | |||||||
Term of swap agreement | 1 year | 1 year | 1 year | ||||||
Swap [Member] | FFL [Member] | LIBOR [Member] | |||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||
Basis spread on variable rate | 1.45% | 1.45% | 1.45% | 1.45% | |||||
Swap [Member] | AFL [Member] | |||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||
Swap agreement collateral | $ 40,000,000 | ||||||||
Notional amount | $ 152,000,000 | $ 124,000,000 | |||||||
Term of swap agreement | 3 years | 1 year | |||||||
Swap [Member] | AFL [Member] | LIBOR [Member] | |||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||
Basis spread on variable rate | 1.35% | 1.35% | 1.35% | 1.35% |
Supplemental Reinsurance Pre103
Supplemental Reinsurance Premiums (Schedule of Property and Liability Insurance Earned Premiums) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Supplementary Insurance Information [Abstract] | |||||||||||
Direct amounts | $ 3,146,864 | $ 2,970,424 | $ 2,806,889 | ||||||||
Ceded to other companies | (15,846) | (12,964) | (11,185) | ||||||||
Assumed | 755 | 437 | 491 | ||||||||
Net amounts | $ 794,517 | $ 790,850 | $ 779,321 | $ 767,085 | $ 760,094 | $ 745,520 | $ 731,546 | $ 720,737 | $ 3,131,773 | $ 2,957,897 | $ 2,796,195 |