Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Feb. 15, 2016 | Jun. 30, 2015 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2,015 | ||
Entity Registrant Name | INVESTORS TITLE CO | ||
Entity Central Index Key | 720,858 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 1,936,646 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Public Float | $ 106,404,827 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Investments in securities: | ||
Fixed maturities, available-for-sale, at fair value (amortized cost: 2015: $102,015,826; 2014: $104,421,050) | $ 106,066,384 | $ 109,048,290 |
Equity securities, available-for-sale, at fair value (cost: 2015: $23,855,873; 2014: $24,128,753) | 37,513,464 | 39,254,981 |
Short-term investments | 6,865,406 | 2,576,993 |
Other investments | 10,106,828 | 8,530,929 |
Total investments | 160,552,082 | 159,411,193 |
Cash and cash equivalents | 21,790,068 | 15,826,515 |
Premium and fees receivable | 8,392,697 | 8,544,183 |
Accrued interest and dividends | 1,004,126 | 1,063,837 |
Prepaid expenses and other assets | 12,634,105 | 7,732,677 |
Property, net | 7,148,951 | 5,460,805 |
Total Assets | 211,522,029 | 198,039,210 |
Liabilities: | ||
Reserves for claims | 37,788,000 | 36,677,000 |
Accounts payable and accrued liabilities | 25,043,588 | 18,290,819 |
Current income taxes payable | 210,355 | 92,192 |
Deferred income taxes, net | 5,703,006 | 5,415,493 |
Total liabilities | 68,744,949 | 60,475,504 |
Commitments and Contingencies | 0 | 0 |
Stockholders' Equity: | ||
Preferred stock (1,000,000 authorized shares; no shares issued) | 0 | 0 |
Common stock – no par value (10,000,000 authorized shares; 1,949,797 and 2,023,270 shares issued and outstanding 2015 and 2014, respectively, excluding 291,676 shares for 2015 and 2014 of common stock held by the Company’s subsidiary) | 1 | 1 |
Retained earnings | 131,186,866 | 124,707,196 |
Accumulated other comprehensive income | 11,483,015 | 12,856,509 |
Total stockholders’ equity attributable to the Company | 142,669,882 | 137,563,706 |
Noncontrolling interests | 107,198 | 0 |
Total stockholders’ equity | 142,777,080 | 137,563,706 |
Total Liabilities and Stockholders’ Equity | $ 211,522,029 | $ 198,039,210 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Fixed maturities, available-for-sale, cost | $ 102,015,826 | $ 104,421,050 |
Equity securities, available-for-sale, cost | $ 23,855,873 | $ 24,128,753 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, no par value | ||
Common stock, shares authorized | 10,000,000 | 10,000,000 |
Common stock, shares issued | 1,949,797 | 2,023,270 |
Common stock, shares outstanding | 1,949,797 | 2,023,270 |
Common stock, held by Company's subsidiary | 291,676 | 291,676 |
Consolidated Statements Of Inco
Consolidated Statements Of Income - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenues: | |||
Net premiums written | $ 112,475,686 | $ 109,963,556 | $ 113,886,266 |
Investment income – interest and dividends | 4,531,319 | 4,259,501 | 3,894,608 |
Net realized (loss) gain on investments | (116,163) | 268,294 | 195,800 |
Other | 10,309,230 | 8,627,935 | 8,274,823 |
Total Revenues | 127,200,072 | 123,119,286 | 126,251,497 |
Operating Expenses: | |||
Commissions to agents | 62,174,301 | 65,632,353 | 67,150,810 |
Provision (benefit) for claims | 4,478,494 | 5,229,716 | (571,596) |
Salaries, employee benefits and payroll taxes | 28,041,213 | 25,218,225 | 25,386,511 |
Office occupancy and operations | 5,885,336 | 5,049,962 | 4,430,220 |
Business development | 2,373,270 | 2,333,491 | 2,145,639 |
Filing fees, franchise and local taxes | 732,985 | 817,909 | 681,935 |
Premium and retaliatory taxes | 2,161,571 | 1,851,767 | 2,558,227 |
Professional and contract labor fees | 2,691,411 | 2,676,483 | 2,171,606 |
Other | 884,438 | 820,882 | 755,407 |
Total Operating Expenses | 109,423,019 | 109,630,788 | 104,708,759 |
Income before Income Taxes | 17,777,053 | 13,488,498 | 21,542,738 |
Provision for Income Taxes | 5,228,000 | 3,816,000 | 6,746,000 |
Net Income | 12,549,053 | 9,672,498 | 14,796,738 |
Net Income Attributable to Noncontrolling Interests | 15,148 | ||
Net Income Attributable to Redeemable Noncontrolling Interests | 23,523 | 88,528 | |
Net Income Attributable to the Company | $ 12,533,905 | $ 9,648,975 | $ 14,708,210 |
Basic Earnings per Common Share | $ 6.32 | $ 4.75 | $ 7.15 |
Weighted Average Shares Outstanding – Basic | 1,984,360 | 2,031,760 | 2,056,169 |
Diluted Earnings per Common Share | $ 6.30 | $ 4.74 | $ 7.08 |
Weighted Average Shares Outstanding – Diluted | 1,989,799 | 2,037,534 | 2,076,628 |
Cash Dividends Paid per Common Share | $ 0.40 | $ 0.32 | $ 0.32 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 12,549,053 | $ 9,672,498 | $ 14,796,738 |
Other comprehensive income, before tax: | |||
Amortization (accretion) related to prior year service cost | 4,390 | 2,217 | (1,518) |
Amortization of unrecognized loss | 3,514 | 0 | 6,293 |
Accumulated postretirement (benefit) provision obligation adjustment | (63,566) | (47,121) | 77,213 |
Unrealized (losses) gains on investments arising during the period | (2,077,542) | 2,848,256 | 3,959,623 |
Reclassification adjustment for sale of securities included in net income | (718,837) | (518,279) | (229,869) |
Reclassification adjustment for write-down of securities included in net income | 751,059 | 14,542 | 34,070 |
Other comprehensive (loss) income, before tax | (2,100,982) | 2,299,615 | 3,845,812 |
Income tax (benefit) expense related to postretirement health benefits | (18,924) | (15,269) | 27,887 |
Income tax (benefit) expense related to unrealized (losses) gains on investments arising during the year | (722,226) | 974,145 | 1,354,439 |
Income tax benefit related to reclassification adjustment for sale of securities included in net income | (245,200) | (173,403) | (78,622) |
Income tax expense related to reclassification adjustment for write-down of securities included in net income | 258,862 | 5,037 | 13,134 |
Net income tax (benefit) expense on other comprehensive (loss) income | (727,488) | 790,510 | 1,316,838 |
Other comprehensive (loss) income | (1,373,494) | 1,509,105 | 2,528,974 |
Comprehensive Income | 11,175,559 | 11,181,603 | 17,325,712 |
Less: Comprehensive income attributable to noncontrolling interests | (15,148) | (23,523) | (88,528) |
Comprehensive Income Attributable to the Company | $ 11,160,411 | $ 11,158,080 | $ 17,237,184 |
Consolidated Statements Of Stoc
Consolidated Statements Of Stockholders' Equity - USD ($) | Total | Common Stock | Retained Earnings | Accumulated Other Comprehensive Income | Noncontrolling Interest [Member] |
Balance, beginning of year at Dec. 31, 2012 | $ 114,638,890 | $ 1 | $ 105,820,459 | $ 8,818,430 | $ 0 |
Balance, beginning of year, shares at Dec. 31, 2012 | 2,043,359 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income attributable to the Company | 14,708,210 | 14,708,210 | |||
Dividends | (657,914) | (657,914) | |||
Shares of common stock repurchased and retired (in shares) | (56,223) | ||||
Shares of common stock repurchased and retired | (4,262,260) | (4,262,260) | |||
Stock options and stock appreciation rights exercised (in shares) | 49,999 | ||||
Stock options and stock appreciation rights exercised | 75,797 | 75,797 | |||
Share-based compensation expense | 83,852 | 83,852 | |||
Amortization related to postretirement health benefits | 3,140 | 3,140 | |||
Accumulated postretirement benefit obligation adjustment | 50,961 | 50,961 | |||
Net unrealized gain (loss) on investments | 2,474,873 | 2,474,873 | |||
Subsidiary return of capital | 0 | ||||
Temporary Equity, Interest Resulting From Subsidiary Purchase | 0 | ||||
Income tax benefit from share-based compensation | 946,605 | 946,605 | |||
Balance, end of year at Dec. 31, 2013 | 128,062,154 | $ 1 | 116,714,749 | 11,347,404 | 0 |
Balance, end of year, shares at Dec. 31, 2013 | 2,037,135 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income attributable to the Company | 9,648,975 | 9,648,975 | |||
Dividends | (650,433) | (650,433) | |||
Shares of common stock repurchased and retired (in shares) | (15,372) | ||||
Shares of common stock repurchased and retired | (1,055,765) | (1,055,765) | |||
Stock options and stock appreciation rights exercised (in shares) | 1,507 | ||||
Stock options and stock appreciation rights exercised | 27,100 | 27,100 | |||
Share-based compensation expense | 120,891 | 120,891 | |||
Amortization related to postretirement health benefits | 1,465 | 1,465 | |||
Accumulated postretirement benefit obligation adjustment | (31,100) | (31,100) | |||
Net unrealized gain (loss) on investments | 1,538,740 | 1,538,740 | |||
Subsidiary return of capital | 0 | ||||
Temporary Equity, Interest Resulting From Subsidiary Purchase | (114,320) | (114,320) | |||
Income tax benefit from share-based compensation | 15,999 | 15,999 | |||
Balance, end of year at Dec. 31, 2014 | 137,563,706 | $ 1 | 124,707,196 | 12,856,509 | 0 |
Balance, end of year, shares at Dec. 31, 2014 | 2,023,270 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income attributable to the Company | 12,533,905 | 12,533,905 | |||
Dividends | (789,907) | (789,907) | |||
Shares of common stock repurchased and retired (in shares) | (75,665) | ||||
Shares of common stock repurchased and retired | (5,483,953) | (5,483,953) | |||
Stock options and stock appreciation rights exercised (in shares) | 2,192 | ||||
Stock options and stock appreciation rights exercised | 54,988 | 54,988 | |||
Share-based compensation expense | 137,762 | 137,762 | |||
Amortization related to postretirement health benefits | 5,216 | 5,216 | |||
Accumulated postretirement benefit obligation adjustment | (41,954) | (41,954) | |||
Net unrealized gain (loss) on investments | (1,336,756) | (1,336,756) | |||
Net effect changes of ownership | 127,050 | 127,050 | |||
Subsidiary return of capital | (35,000) | (35,000) | |||
Net Income (Loss) Attributable to Noncontrolling Interest | 15,148 | 15,148 | |||
Temporary Equity, Interest Resulting From Subsidiary Purchase | 0 | ||||
Income tax benefit from share-based compensation | 26,875 | 26,875 | |||
Balance, end of year at Dec. 31, 2015 | $ 142,777,080 | $ 1 | $ 131,186,866 | $ 11,483,015 | $ 107,198 |
Balance, end of year, shares at Dec. 31, 2015 | 1,949,797 |
Consolidated Statements Of Sto7
Consolidated Statements Of Stockholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statement of Stockholders' Equity [Abstract] | |||
Dividend declared per share | $ 0.40 | $ 0.32 | $ 0.32 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Operating Activities | |||
Net income | $ 12,549,053 | $ 9,672,498 | $ 14,796,738 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
Depreciation | 1,105,839 | 833,104 | 669,727 |
Amortization, net | 728,510 | 630,782 | 507,111 |
Amortization related to postretirement benefits obligation | 7,904 | 2,217 | 4,765 |
Share-based compensation expense related to stock options | 137,762 | 120,891 | 83,852 |
Net (gain) loss on disposals of property | (24,867) | 24,608 | 7,831 |
Net realized loss (gain) on investments | 116,163 | (268,294) | (195,800) |
Net earnings from other investments | (2,002,276) | (1,450,980) | (1,257,266) |
Provision (benefit) for claims | 4,478,494 | 5,229,716 | (571,596) |
Provision for deferred income taxes | 1,015,000 | 611,000 | 1,804,000 |
Changes in assets and liabilities: | |||
Decrease in receivables | 217,594 | 206,041 | 2,287,489 |
Increase in other assets | (4,879,418) | (393,359) | (2,906,224) |
Decrease (increase) in current income taxes recoverable | 0 | 366,772 | (366,772) |
Increase (decrease) in accounts payable and accrued liabilities | 6,689,204 | (2,080,492) | 4,923,858 |
Increase (decrease) in current income taxes payable | 118,163 | 92,192 | (1,336,824) |
Payments of claims, net of recoveries | 3,367,494 | 3,912,716 | 3,146,404 |
Net cash provided by (used in) operating activities | 16,889,631 | 9,683,980 | 15,304,485 |
Investing Activities | |||
Purchases of available-for-sale securities | (20,164,353) | (30,899,452) | (23,466,037) |
Purchases of short-term securities | (4,593,240) | (911,188) | (2,638,908) |
Purchases of other investments | (3,717,978) | (1,689,950) | (1,369,210) |
Investment in/purchase of subsidiary | (72,600) | 0 | 0 |
Proceeds from sales and maturities of available-for-sale securities | 22,151,408 | 12,472,817 | 9,892,634 |
Proceeds from sales and maturities of short-term securities | 304,827 | 6,260,568 | 8,280,183 |
Proceeds from sales and distributions of other investments | 3,911,286 | 1,584,337 | 2,107,675 |
Proceeds from sales of other assets | 149,128 | 38,052 | 40,366 |
Purchase of redeemable noncontrolling interest of subsidiary | 0 | (515,275) | 0 |
Purchases of property, equipment and software | (2,742,619) | (2,017,379) | (1,424,108) |
Proceeds from disposals of property | 75,060 | 24,400 | 24,335 |
Net cash provided by (used in) investing activities | (4,699,081) | (15,653,070) | (8,553,070) |
Financing Activities | |||
Repurchases of common stock | (5,483,953) | (1,055,765) | (4,262,260) |
Exercise of options | 54,988 | 27,100 | 75,797 |
Distribution to noncontrolling interest | 0 | (168,057) | (36,900) |
Subsidiary return of capital | (35,000) | 0 | 0 |
Excess tax benefits related to exercise of stock options and SARs | 26,875 | 15,999 | 946,605 |
Dividends paid | (789,907) | (650,433) | (657,914) |
Net cash provided by (used in) financing activities | (6,226,997) | (1,831,156) | (3,934,672) |
Net Increase (Decrease) in Cash and Cash Equivalents | 5,963,553 | (7,800,246) | 2,816,743 |
Cash and Cash Equivalents, Beginning of Period | 15,826,515 | 23,626,761 | 20,810,018 |
Cash and Cash Equivalents, End of Period | 21,790,068 | 15,826,515 | 23,626,761 |
Cash Paid During the Year for: | |||
Income tax payments, net | 4,658,000 | 2,744,100 | 5,724,000 |
Non cash net unrealized loss (gain) on investments, net of deferred tax benefit (provision) of $708,564, $(805,779) and $(1,288,951) for 2015, 2014 and 2013, respectively | 1,336,756 | (1,538,740) | (2,474,873) |
Adjustments to postretirement benefits obligation, net of deferred tax benefit (provision) of $21,612, $16,021 and $(26,252) for 2015, 2014 and 2013, respectively | $ 41,954 | $ 31,100 | $ (50,961) |
Consolidated Statements Of Cas9
Consolidated Statements Of Cash Flows (Parenthetical) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statement of Cash Flows [Abstract] | |||
Non cash net unrealized loss (gain) on investments, deferred tax benefit (provision) | $ 708,564 | $ (805,799) | $ (1,288,951) |
Adjustments to postretirement benefits obligation, net of deferred tax benefit (provision) | $ 21,612 | $ 16,021 | $ (26,252) |
Basis Of Presentation and Signi
Basis Of Presentation and Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis Of Presentation and Significant Accounting Policies | Basis of Presentation and Summary of Significant Accounting Policies Description of Business – Investors Title Company’s (the “Company”) primary business, and only reportable segment, is title insurance. The title insurance segment, through its two subsidiaries, Investors Title Insurance Company (“ITIC”) and National Investors Title Insurance Company (“NITIC”), is licensed to insure titles to residential, institutional, commercial and industrial properties. The Company issues title insurance policies primarily through approved attorneys from underwriting offices and through independent issuing agents in 22 states and the District of Columbia, primarily in the eastern half of the United States. The majority of the Company’s business is concentrated in Georgia, Michigan, North Carolina, South Carolina, Texas and Virginia. Principles of Consolidation and Basis of Presentation – The accompanying Consolidated Financial Statements include the accounts and operations of Investors Title Company and its subsidiaries, and have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”). Earnings attributable to noncontrolling interests in majority-owned insurance agencies, including redeemable noncontrolling interests, are recorded in the Consolidated Statements of Income. Noncontrolling interests representing the portion of equity not related to the Company's ownership interests are recorded in separate sections of the Consolidated Balance Sheets. All intercompany balances and transactions have been eliminated in consolidation. Significant Accounting Policies – The significant accounting policies of the Company are summarized below. Cash and Cash Equivalents For the purpose of presentation in the Company’s Consolidated Statements of Cash Flows, cash equivalents are highly liquid instruments with remaining original maturities of three months or less. The carrying amount of cash and cash equivalents is a reasonable estimate of fair value due to the short-term maturity at purchase of these instruments. Investments in Securities Securities for which the Company has the intent and ability to hold to maturity are classified as held-to-maturity and reported at cost, adjusted for amortization of premiums or accretion of discounts, and other-than-temporary declines in fair value. Securities held principally for resale in the near term are classified as trading securities and recorded at fair values. Realized and unrealized gains and losses on trading securities are included in other income. Securities not classified as either trading or held-to-maturity are classified as available-for-sale and reported at fair value with unrealized gains and losses, net of tax and adjusted for other-than-temporary declines in fair value, reported as accumulated other comprehensive income. As of December 31, 2015 and 2014 , all investments in securities are classified as available-for-sale. Securities are regularly reviewed for differences between the cost and estimated fair value of each security for factors that may indicate that a decline in fair value is other-than-temporary. Some factors considered in evaluating whether or not a decline in fair value is other-than-temporary include the duration and extent to which the fair value has been less than cost and the Company’s ability and intent to retain the investment for a period of time sufficient to allow for a recovery in value. Such reviews are inherently uncertain and the value of the investment may not fully recover or may decline in future periods resulting in a realized loss. Fair values of the majority of investments are based on quoted market prices. Realized gains and losses are determined on the specific identification method. Refer to Note 3 for further information regarding investments in securities and fair value. Short-term Investments Short-term investments are comprised of money market accounts which are invested in short-term funds, time deposits with banks and savings and loan associations, and other investments expected to have maturities or redemptions greater than three months and less than twelve months. The Company monitors any events or changes in circumstances that may have a significant adverse effect on the fair value of these investments. Other Investments Other investments consist primarily of investments in title insurance agencies structured as limited liability companies (“LLCs”), which are accounted for under the equity or cost methods of accounting. The aggregate cost of the Company’s cost method investments totaled $3,572,914 and $2,423,408 at December 31, 2015 and 2014 , respectively. The Company monitors any events or changes in circumstances that may have had a significant adverse effect on the fair value of these investments and makes any necessary adjustments. Property Acquired in Settlement of Claims Property acquired in settlement of claims is held for sale and valued at the lower of cost or market. Adjustments to reported estimated realizable values and realized gains or losses on dispositions are recorded as increases or decreases in claim costs. Properties acquired in settlement of claims are included in prepaid expenses and other assets in the Consolidated Balance Sheets. Property and Equipment Property and equipment are recorded at cost and are depreciated principally under the straight-line method over the estimated useful lives ( 3 to 25 years) of the respective assets. Maintenance and repairs are charged to operating expenses and improvements are capitalized. Reserves for Claims Total reserves for all reported and unreported losses the Company incurred through December 31, 2015 are represented by the reserves for claims. The Company’s reserves for unpaid losses and loss adjustment expenses are established using estimated amounts required to settle claims for which notice has been received (reported) and the amount estimated to be required to satisfy incurred claims of policyholders which may be reported in the future. Despite the variability of such estimates, management believes that the reserves are adequate to cover claim losses resulting from pending and future claims for policies issued through December 31, 2015 . The Company continually reviews and adjusts its reserve estimates as necessary to reflect its loss experience and any new information that becomes available. Adjustments resulting from such reviews may be significant. Claims and losses paid are charged to the reserves for claims. Although claims losses are typically paid in cash, occasionally claims are settled by purchasing the interest of the insured or the claimant in the real property. When this event occurs, the acquiring company carries assets at the lower of cost or estimated realizable value, net of any indebtedness on the property. Income Taxes The Company makes certain estimates and judgments in determining income tax expense (benefit) for financial statement purposes. These estimates and judgments occur in the calculation of certain tax assets and liabilities which arise from differences in the timing of recognition of revenue and expense for tax and financial statement purposes. The Company provides for deferred income taxes (benefits) for the tax consequences in future years of temporary differences between the financial statements’ carrying values and the tax bases of assets and liabilities using currently enacted tax rates. The Company establishes a valuation allowance if it believes that it is more likely than not that some or all of its deferred tax assets will not be realized. Refer to Note 8 for further information regarding income taxes. Premiums Written and Commissions to Agents Generally, title insurance premiums are recognized at the time of closing of the related real estate transaction, as the earnings process is then considered complete. Policies or commitments are issued upon receipt of final certificates or preliminary reports with respect to titles. Title insurance commissions earned by the Company’s agents, taxes and a provision for claims losses are recognized as expenses concurrent with recognition of related premium revenue. Allowance for Doubtful Accounts Company management continually evaluates the collectability of receivables and provides an allowance for doubtful accounts equal to estimated losses expected to be incurred in the collection of premiums and fees receivable. Changes to the allowance for doubtful accounts are reflected within net premiums written in the Consolidated Statements of Income. Amounts are charged off in the period they are deemed to be uncollectible. Quarterly, the Company evaluates the collectability of receivables. Premiums not collected within 7 months are fully reserved. Write-offs of receivables have not been material to the Company. Exchange Services Revenue Fees are recognized at the signing of a binding agreement and investment earnings are recognized as they are earned. Exchange services revenues are included in other revenues in the Consolidated Statements of Income. Fair Values of Financial Instruments The carrying amounts reported in the Consolidated Balance Sheets for cash and cash equivalents, short-term investments, premium and fees receivable, accrued interest and dividends, accounts payable, commissions payable, reinsurance payable and current income taxes recoverable/payable approximate fair value due to the short-term nature of these assets and liabilities. Estimated fair values for the majority of investment securities are based on quoted market prices. Auction rate securities (“ARS”) are valued using discounted cash flow models to determine the estimated fair value of these investments. Some of the inputs for determining the fair value of ARS are unobservable in the securities markets and are significant. Refer to Note 3 for further information regarding investments in securities and fair value. Comprehensive Income The Company’s accumulated other comprehensive income is comprised of unrealized holding gains/losses on available-for-sale securities, net of tax, and unrecognized prior service cost and unrealized gains/losses associated with postretirement benefit liabilities, net of tax. Accumulated other comprehensive income as of December 31, 2015 consists of $11,597,741 of unrealized holding gains on available-for-sale securities and $114,726 of unrecognized prior service cost and unrecognized actuarial losses associated with postretirement benefit liabilities. Accumulated other comprehensive income as of December 31, 2014 consists of $12,934,497 of unrealized holding gains on available-for-sale securities and $77,988 of unrecognized prior service cost and unrecognized actuarial losses associated with postretirement benefit liabilities. Accumulated other comprehensive income as of December 31, 2013 consists of $11,395,757 of unrealized holding gains on available-for-sale securities and $48,353 of unrecognized prior service cost and unrecognized actuarial losses associated with postretirement benefit liabilities. Share-Based Compensation The Company accounts for share-based compensation in accordance with the fair value based principles required by the Financial Accounting Standards Board (“FASB”). Share-based compensation cost is generally measured at the grant date, based on the estimated fair value of the award, and is recognized as an expense over the employee’s requisite service period. As the share-based compensation expense recognized in the Consolidated Statements of Income is based on awards ultimately expected to vest, it has been reduced for estimated forfeitures. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. Other Intangible Assets The Company’s other intangible assets consist of a non-compete agreement and referral relationships resulting from an agency acquisition and are recorded at the acquisition date fair value. The referral relationships are amortized on a straight-line basis over the useful life and amortization of the non-compete contract will start at a future date when the related employment agreement is terminated. Intangible assets are reviewed for impairment at least quarterly. Subsequent Events The Company has evaluated and concluded that there were no material subsequent events requiring adjustment or disclosure to its Consolidated Financial Statements. Recently Issued Accounting Standards In February 2016, the FASB updated guidance to improve financial reporting for leasing transactions. The core principle of the guidance is that lessees will be required to recognize assets and liabilities on the balance sheet for all leases with terms of more than 12 months. A lessee would recognize a liability to make lease payments and a right-of-use asset representing its right to use the underlying asset for the lease term. The accounting applied by a lessor is largely unchanged from current GAAP, with some targeted improvements. Disclosures will be required by lessees and lessors to meet the objective of enabling users of financial statements to assess the amount, timing, and uncertainty of cash flows arising from leases. In transition, both lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The amendments of this update are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company is currently evaluating the impact that the recently issued accounting standard will have on the Company's financial position and results of operations, and is currently uncertain as to whether it will have a material effect. In January 2016, the FASB updated guidance to enhance the reporting model for financial instruments. Among the main principles of the guidance applicable to the Company are provisions to require equity investments, except those accounted for under the equity method of accounting or those that result in consolidation of the investee, to be measured at fair value with changes in fair value recognized in net income; simplify the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment, noting that when a qualitative assessment indicates that impairment exists that an entity is required to measure the investment at fair value; eliminate the requirement to disclose methods and significant assumptions used to estimate the fair value for financial instruments measured at amortized cost; require entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes; require separate presentation of financial assets and financial liabilities by measuring category and form of financial asset on the balance sheet or accompanying notes to the financial statements; and clarify 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. The amendments of this update are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company will be required to apply the amendments of this update by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption, with the amendments related to equity securities without readily determinable fair values being applied prospectively to equity investments that exist as of the date of adoption. The guidance is expected to have a material impact on the Company’s financial condition and results of operations once effective, primarily resulting from fluctuations in security exchanges or markets. In February 2015, the FASB updated guidance to change the analysis that a reporting entity must perform to determine whether it should consolidate certain types of legal entities. All legal entities are subject to reevaluation under the revised consolidation model. Specifically, the amendments: modify the evaluation of whether limited partnerships and similar legal entities are variable interest entities ("VIEs") or voting interest entities; eliminate the presumption that a general partner should consolidate a limited partnership; affect the consolidation analysis of reporting entities that are involved with VIEs, particularly those that have fee arrangements and related party relationships; and provide a scope exception from consolidation guidance for reporting entities that are required to comply with or operate in accordance with certain requirements similar to those for registered money market funds. For public entities, this update becomes effective for annual reporting periods beginning after December 15, 2015, including interim periods within that reporting period. Early adoption is permitted. The Company is currently evaluating the impact that the recently issued accounting standard will have on the Company's financial position and results of operations, but does not expect it to have a material impact. In May 2014, the FASB updated guidance to improve the comparability of revenue recognition practices for entities that either enter into contracts with customers to transfer goods or services or enter into contracts for the transfer of nonfinancial assets, unless those contracts are within the scope of other standards such as insurance contracts or lease standards. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. For public entities, this update originally became effective for interim and annual reporting periods beginning after December 15, 2016. In August 2015, the FASB updated guidance to defer the effective date of the standard by one year. Early adoption is not permitted, although public entities are permitted to elect to adopt the amendments on the original effective date. The Company is currently evaluating the impact that the recently issued accounting standard will have on the Company's financial position and results of operations, but does not expect it to have a material impact. Use of Estimates and Assumptions The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosures of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period and accompanying notes. Actual results could differ materially from those estimates and assumptions used. The more significant of these estimates and assumptions include the following: Claims – The Company’s reserves for claims are established using estimated amounts required to settle claims for which notice has been received (reported) and the amount estimated to be required to satisfy incurred claims of policyholders which may be reported in the future (incurred but not reported, or “IBNR”). A provision for estimated future claims payments is recorded at the time policy revenue is recorded as a percentage of premium income. By their nature, title claims can often be complex, vary greatly in dollar amounts, vary in number due to economic and market conditions such as an increase in mortgage foreclosures, and involve uncertainties as to ultimate exposure. In addition, some claims may require a number of years to settle and determine the final liability for indemnity and loss adjustment expense. The payment experience may extend for more than 20 years after the issuance of a policy. Events such as fraud, defalcation and multiple property defects can substantially and unexpectedly cause increases in estimates of losses. Due to the length of time over which claim payments are made and regularly occurring changes in underlying economic and market conditions, these estimates are subject to variability. Management considers factors such as the Company’s historical claims experience, case reserve estimates on reported claims, large claims, actuarial projections and other relevant factors in determining loss provision rates and the aggregate recorded expected liability for claims. In establishing reserves, actuarial projections are compared with recorded reserves to evaluate the adequacy of such recorded claims reserves and any necessary adjustments are then recorded in current operations. As the most recent claims experience develops and new information becomes available, the loss reserve estimate related to prior periods will change to more accurately reflect updated and improved emerging data. The Company reflects any adjustments to reserves in the results of operations in the period in which new information (principally claims experience) becomes available. The Company’s reserves for claims are established using estimated amounts required to settle claims for which notice has been received (reported) and the amount estimated to be required to satisfy incurred claims of policyholders which have been incurred but not reported (“IBNR”). During the third quarter of 2013 certain actuarial inputs were changed to reflect recent trends. See Note 6 in the accompanying Consolidated Financial Statements for further information regarding this change in accounting estimate. Premiums written – The Company’s premium revenues from certain agency operations include accruals based on estimates. These accruals estimate unreported agency premiums related to transactions which have settled as of the balance sheet date. Accruals for premiums from certain agencies are necessary because of the lag between policy effective dates and the reporting of these transactions to the Company by the agents. The current lag time used in the Company’s estimates typically ranges between 0 and 180 days after the policy effective date, with the majority of agencies reporting within 60 to 90 days. The lag time is reviewed periodically to monitor accruals. To determine the estimated premiums, the Company uses historical experience, as well as other factors, to make certain assumptions about the average elapsed time between the policy effective date and the date the policies are reported. From time to time, the Company adjusts the inputs to the calculation of these estimates as agents report transactions and information on more current trends becomes available. The Company reflects any adjustments to the accruals in the results of operations in the period in which new information becomes available. Impairments – Securities are regularly evaluated and reviewed for differences between the cost and estimated fair value of each security for factors that may indicate that a decline in estimated fair value is other-than-temporary. When, in the opinion of management, a decline in the estimated fair value of an investment is considered to be other-than-temporary, such investment is written down to its estimated fair value. Some factors considered in evaluating whether or not a decline in estimated fair value is other-than-temporary include the duration and extent to which the estimated fair value has been less than cost; the probability that the Company will be unable to collect all amounts due under the contractual terms of the security; with respect to equity securities, whether the Company’s ability and intent to retain the investment for a period of time is sufficient to allow for a recovery in value; with respect to fixed maturity securities, whether the Company has the intent to sell or will more likely than not be required to sell a particular security before recovery in value; and the financial condition and prospects of the issuer (including credit ratings). These factors are reviewed quarterly and any material degradation in the prospect for recovery will be considered in the other-than-temporary impairment analysis. Such reviews are inherently uncertain and the value of the investment may not fully recover or may decline in future periods resulting in a realized loss. The estimated fair values of the majority of the Company’s investments are based on quoted market prices from independent pricing services. |
Statutory Restrictions on Conso
Statutory Restrictions on Consolidated Stockholders' Equity and Investments | 12 Months Ended |
Dec. 31, 2015 | |
Statutory Restrictions on Consolidated Stockholders' Equity and Investments [Abstract] | |
Statutory Restrictions on Consolidated Stockholders' Equity and Investments | Statutory Accounting and Restrictions on Consolidated Stockholders’ Equity and Investments The Consolidated Financial Statements have been prepared in conformity with GAAP which differ in some respects from statutory accounting practices prescribed or permitted in the preparation of financial statements for submission to insurance regulatory authorities. Combined capital and surplus on a statutory basis was $133,363,375 and $127,314,429 as of December 31, 2015 and 2014 , respectively. Net income on a statutory basis was $13,621,174 , $9,737,634 and $11,858,699 for the twelve months ended December 31, 2015 , 2014 and 2013 , respectively. The Company has designated approximately $50,508,000 and $48,423,000 of retained earnings as of December 31, 2015 and 2014 , respectively, as appropriated to reflect the required statutory premium and supplemental reserves. See Note 8 for the tax treatment of the statutory premium reserve. As of December 31, 2015 and 2014 , approximately $89,489,000 and $90,384,000 , respectively, of consolidated stockholders’ equity represents net assets of the Company’s subsidiaries that cannot be transferred in the form of dividends, loans or advances to the parent company under statutory regulations without prior insurance department approval. During 2016, the maximum distributions the insurance subsidiaries can make to the Company without prior approval from applicable regulators total approximately $14,352,000 . Bonds totaling approximately $7,159,000 and $7,060,000 at December 31, 2015 and 2014 , respectively, are deposited with the insurance departments of the states in which business is conducted. |
Investments in Securities and F
Investments in Securities and Fair Value | 12 Months Ended |
Dec. 31, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments In Securities and Fair Value | Investments in Securities and Estimated Fair Value The aggregate estimated fair value, gross unrealized holding gains, gross unrealized holding losses, and amortized cost for securities by major security type at December 31 were as follows: December 31, 2015 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Fixed maturities, available-for-sale, at fair value: General obligations of U.S. states, territories and political subdivisions $ 31,883,439 $ 987,595 $ 11,734 $ 32,859,300 Special revenue issuer obligations of U.S. states, territories and political subdivisions 52,202,815 2,604,152 26,127 54,780,840 Corporate debt securities 17,004,985 539,832 58,473 17,486,344 Auction rate securities 924,587 15,313 — 939,900 Total $ 102,015,826 $ 4,146,892 $ 96,334 $ 106,066,384 Equity securities, available-for-sale, at fair value: Common stocks $ 23,855,873 $ 13,785,968 $ 128,377 $ 37,513,464 Total $ 23,855,873 $ 13,785,968 $ 128,377 $ 37,513,464 Short-term investments: Money market funds and certificates of deposit $ 6,865,406 $ — $ — $ 6,865,406 Total $ 6,865,406 $ — $ — $ 6,865,406 December 31, 2014 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Fixed maturities, available-for-sale, at fair value: General obligations of U.S. states, territories and political subdivisions $ 35,215,247 $ 1,527,794 $ 19,542 $ 36,723,499 Special revenue issuer obligations of U.S. states, territories and political subdivisions 46,707,033 2,405,725 55,502 49,057,256 Corporate debt securities 21,576,641 823,133 71,339 22,328,435 Auction rate securities 922,129 16,971 — 939,100 Total $ 104,421,050 $ 4,773,623 $ 146,383 $ 109,048,290 Equity securities, available-for sale, at fair value: Common stocks and nonredeemable preferred stocks $ 24,128,753 $ 15,225,459 $ 99,231 $ 39,254,981 Total $ 24,128,753 $ 15,225,459 $ 99,231 $ 39,254,981 Short-term investments: Money market funds and certificates of deposit $ 2,576,993 $ — $ — $ 2,576,993 Total $ 2,576,993 $ — $ — $ 2,576,993 The special revenue category for both periods presented includes over 50 individual bonds with revenue sources from a variety of industry sectors. The scheduled maturities of fixed maturity securities at December 31, 2015 were as follows: Available-for-Sale Amortized Cost Fair Value Due in one year or less $ 14,677,669 $ 14,877,469 Due after one year through five years 41,214,199 42,796,111 Due five years through ten years 42,879,329 44,682,558 Due after ten years 3,244,629 3,710,246 Total $ 102,015,826 $ 106,066,384 Earnings on investments for the years ended December 31 were as follows: 2015 2014 2013 Fixed maturities $ 3,439,296 $ 3,282,810 $ 2,997,901 Equity securities 1,086,365 973,419 890,917 Invested cash and other short-term investments 5,605 3,202 5,754 Miscellaneous interest 53 70 36 Investment income $ 4,531,319 $ 4,259,501 $ 3,894,608 Gross realized gains and losses on sales of investments for the years ended December 31 are summarized as follows: 2015 2014 2013 Gross realized gains: Corporate debt securities $ 5,417 $ 6,670 $ — Common stocks and nonredeemable preferred stocks 1,572,636 1,021,463 369,673 Total 1,578,053 1,028,133 369,673 Gross realized losses: General obligations of U.S. states, territories and political subdivisions (12,319 ) — — Special revenue issuer obligations of U.S. states, territories and political subdivisions (397 ) — — Common stocks and nonredeemable preferred stocks (846,500 ) (509,854 ) (180,169 ) Other than temporary impairment of securities (751,059 ) (14,542 ) — Total (1,610,275 ) (524,396 ) (180,169 ) Net realized (loss) gain $ (32,222 ) $ 503,737 $ 189,504 Net realized (loss) gain on other investments: Impairments of other assets and investments $ (233,069 ) $ (10,062 ) $ (34,070 ) Net gain on other assets and investments 149,128 45,288 48,946 Net loss on other assets and investments — (270,669 ) (8,580 ) Total $ (83,941 ) $ (235,443 ) $ 6,296 Net realized (loss) gain on investments $ (116,163 ) $ 268,294 $ 195,800 Realized gains and losses are determined on the specific identification method. The following table presents the gross unrealized losses on investment securities and the estimated fair value of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous loss position at December 31, 2015 and 2014 : Less than 12 Months 12 Months or Longer Total December 31, 2015 Estimated Fair Value Unrealized Loss Estimated Fair Value Unrealized Loss Estimated Fair Value Unrealized Loss General obligations of U.S. states, territories and political subdivisions $ 1,758,345 $ (11,734 ) $ — $ — $ 1,758,345 $ (11,734 ) Special revenue issuer obligations of U.S. states, territories and political subdivisions 1,672,217 (5,139 ) 1,183,963 (20,989 ) 2,856,180 (26,128 ) Corporate debt securities 6,981,275 (58,472 ) — — 6,981,275 (58,472 ) Total fixed maturity securities $ 10,411,837 $ (75,345 ) $ 1,183,963 $ (20,989 ) $ 11,595,800 $ (96,334 ) Equity securities 5,533,667 (128,377 ) — — 5,533,667 (128,377 ) Total temporarily impaired securities $ 15,945,504 $ (203,722 ) $ 1,183,963 $ (20,989 ) $ 17,129,467 $ (224,711 ) December 31, 2014 General obligations of U.S. states, territories and political subdivisions $ 2,113,194 $ (19,542 ) $ — $ — $ 2,113,194 $ (19,542 ) Special revenue issuer obligations of U.S. states, territories and political subdivisions 3,946,977 (13,453 ) 1,182,390 (42,049 ) 5,129,367 (55,502 ) Corporate debt securities 6,924,430 (71,339 ) — — 6,924,430 (71,339 ) Total fixed maturity securities $ 12,984,601 $ (104,334 ) $ 1,182,390 $ (42,049 ) $ 14,166,991 $ (146,383 ) Equity securities 930,208 (71,669 ) 141,280 (27,562 ) 1,071,488 (99,231 ) Total temporarily impaired securities $ 13,914,809 $ (176,003 ) $ 1,323,670 $ (69,611 ) $ 15,238,479 $ (245,614 ) As of December 31, 2015 , the Company held $11,595,800 in fixed maturity securities with unrealized losses of $96,334 . As of December 31, 2014, the Company held $14,166,991 in fixed maturity securities with unrealized losses of $146,383 . The decline in estimated fair value of the fixed maturity securities can be attributed primarily to changes in market interest rates and changes in credit spreads over Treasury securities. Because the Company does not have the intent to sell these securities and likely will not be compelled to sell them before it can recover its cost basis, the Company does not consider these investments to be other-than-temporarily impaired. As of December 31, 2015 , the Company held $5,533,667 in equity securities with unrealized losses of $128,377 . As of December 31, 2014, the Company held $1,071,488 in equity securities with unrealized losses of $99,231 . The unrealized losses related to holdings of equity securities were caused by market changes that the Company considers to be temporary. Since the Company has the intent and ability to hold these equity income securities until a recovery of fair value, the Company does not consider these investments other-than-temporarily impaired. Factors considered in determining whether a loss is temporary include the length of time and extent to which fair value has been below cost, the financial condition and prospects of the issuer (including credit ratings and analyst reports) and macro-economic changes. A total of 30 and 25 securities had unrealized losses at December 31, 2015 and December 31, 2014, respectively. Reviews of the values of securities are inherently uncertain and the value of the investment may not fully recover, or may decline in future periods resulting in a realized loss. During 2015 , the Company recorded other-than-temporary impairment charges in the amount of $751,059 related to securities. During 2014 , the Company recorded other-than-temporary impairment charges in the amount of $14,542 related to securities. During 2013, the Company did not record other-than-temporary impairment charges related to securities. Other-than-temporary impairment charges are included in net realized (loss) gain on investments in the Consolidated Statements of Income. Valuation of Financial Assets and Liabilities The FASB has established a valuation hierarchy for disclosure of the inputs used to measure fair value of financial assets and liabilities, such as securities. This hierarchy categorizes the inputs into three broad levels as follows. Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument. Level 3 inputs are unobservable inputs based on the Company’s own assumptions used to measure assets and liabilities at fair value. A financial instrument’s classification within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement—consequently, if there are multiple significant valuation inputs that are categorized in different levels of the hierarchy, the instrument’s hierarchy level is the lowest level (with Level 3 being the lowest level) within which any significant input falls. Debt and Equity Securities The Level 1 category includes equity securities that are measured at fair value using quoted active market prices. The Level 2 category includes fixed maturity investments such as corporate bonds, U.S. government and agency bonds and municipal bonds. Estimated fair value is principally based on market values obtained from a third party pricing service. Factors that are used in determining estimated fair market value include benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers and reference data. The Company receives one quote per security from a third party pricing service, although as discussed below, the Company does consult other pricing resources when confirming that the prices it obtains reflect the estimated fair values of the instruments in accordance with Accounting Standards Codification (“ASC”) 820 , Fair Value Measurements and Disclosures . Generally, quotes obtained from the pricing service for instruments classified as Level 2 are not adjusted and are not binding. As of December 31, 2015 and December 31, 2014, the Company did not adjust any Level 2 fair values. A number of the Company’s investment grade corporate bonds are frequently traded in active markets, and trading prices are consequently available for these securities. However, these securities are classified as Level 2 because the pricing service from which the Company has obtained fair values for these instruments uses valuation models which use observable market inputs in addition to trading prices. Substantially all of the input assumptions used in the service’s model are observable in the marketplace or can be derived or supported by observable market data. The Level 3 category only includes the Company’s investments in student loan auction rate securities (“ARS”) because quoted prices are unavailable due to the failure of auctions. The Company’s ARS portfolio is comprised entirely of investment grade student loan ARS. The par value of these securities was $1,000,000 as of December 31, 2015 and December 31, 2014, with approximately 97.0% as of December 31, 2015 and December 31, 2014, guaranteed by the U.S. Department of Education. Some of the inputs to ARS valuation are unobservable in the market and are significant; therefore, the Company utilizes another third party pricing service to assist in the determination of the estimated fair market value of these securities. This service uses a proprietary valuation model that considers factors such as the following: the financial standing of the issuer; reported prices and the extent of public trading in similar financial instruments of the issuer or comparable companies; the ability of the issuer to obtain required financing; changes in the economic conditions affecting the issuer; pricing by other dealers in similar securities; time to maturity; and interest rates. The following table summarizes key assumptions the service used to determine fair value as of December 31, 2015 and 2014 : 2015 2014 Cumulative probability of earning maximum rate until maturity —% —% Cumulative probability of principle returned prior to maturity 95.2% 95.2% Cumulative probability of default at some future point 4.8% 4.8% Significant increases or decreases in any of the inputs in isolation could result in significant changes to the estimated fair value measurement. Generally, increases in default probabilities and liquidity risk premiums lower the estimated fair market value while increases in principal being returned and earning maximum rates increase estimated fair market values. Based upon these inputs and assumptions, the pricing service provides a range of values to the Company for its ARS. The Company records the estimated fair value based on the midpoint of the range and believes that this valuation is the most reasonable estimate of fair value. In 2015 and 2014 , the difference in the low and high values of the ranges was approximately one and four percent of the carrying value of the Company’s ARS. The following table presents, by level, the financial assets carried at estimated fair value measured on a recurring basis as of December 31, 2015 and 2014 . The table does not include cash on hand and also does not include assets which are measured at historical cost or any basis other than fair value. Level 3 assets are comprised solely of ARS. As of December 31, 2015 Level 1 Level 2 Level 3 Total Short-term investments $ 6,865,406 $ — $ — $ 6,865,406 Equity securities: Common stocks 37,513,464 — — 37,513,464 Fixed maturities: Obligations of U.S. states, territories and political subdivisions* — 87,640,140 — 87,640,140 Corporate debt securities* and auction rate security — 17,486,344 939,900 18,426,244 Total $ 44,378,870 $ 105,126,484 $ 939,900 $ 150,445,254 As of December 31, 2014 Level 1 Level 2 Level 3 Total Short-term investments $ 2,576,993 $ — $ — $ 2,576,993 Equity securities: Common stocks and nonredeemable preferred stock 39,254,981 — — 39,254,981 Fixed maturities: Obligations of U.S. states, territories and political subdivisions* — 85,780,755 — 85,780,755 Corporate debt securities* and auction rate security — 22,328,435 939,100 23,267,535 Total $ 41,831,974 $ 108,109,190 $ 939,100 $ 150,880,264 *Denotes fair market value obtained from pricing services. There were no transfers into or out of Levels 1 and 2 during the period. To help ensure that estimated fair value determinations are consistent with ASC 820, prices from our pricing services go through multiple review processes to ensure appropriate pricing. Pricing procedures and inputs used to price each security include, but are not limited to, the following: unadjusted quoted market prices for identical securities such as stock market closing prices; non-binding quoted prices for identical securities in markets that are not active; interest rates; yield curves observable at commonly quoted intervals; volatility; prepayment speeds; loss severity; credit risks and default rates. The Company reviews the procedures and inputs used by its pricing services, and verifies a sample of the services’ quotes by comparing them to values obtained from other pricing resources. In the event the Company disagrees with a price provided by its pricing services, the respective service reevaluates the price to corroborate the market information and then reviews inputs to the evaluation in light of potentially new market data. The Company believes that these processes and inputs result in appropriate classifications and estimated fair values consistent with ASC 820. Other Financial Instruments The Company uses various financial instruments in the normal course of its business. In the measurement of the estimated fair value of certain financial instruments, other valuation techniques were utilized if quoted market prices were not available. These derived fair value estimates are significantly affected by the assumptions used. Additionally, ASC 820 excludes from its scope certain financial instruments including those related to insurance contracts, pension and other postretirement benefits, and equity method investments. In estimating the fair value of the financial instruments presented, the Company used the following methods and assumptions: Cash and cash equivalents The carrying amount for cash and cash equivalents is a reasonable estimate of fair value due to the short-term maturity of these investments. Cost-basis investments The estimated fair value of cost-basis investments is calculated from the book value of the underlying entities, which is not materially different from the fair value of the underlying entity. These items are included in other investments in the Consolidated Balance Sheets. Accrued dividends and interest The carrying amount for accrued dividends and interest is a reasonable estimate of fair value due to the short-term maturity of these assets. The carrying amounts and fair values of these financial instruments (please note investments are disclosed in a previous table) as of December 31, 2015 and 2014 are presented in the following table: As of December 31, 2015 Financial Assets Carrying Value Estimated Fair Value Level 1 Level 2 Level 3 Cash and cash equivalents $ 21,790,068 $ 21,790,068 $ 21,790,068 $ — $ — Cost-basis investments 3,588,314 3,684,020 — — 3,684,020 Accrued dividends and interest 1,004,126 1,004,126 1,004,126 — — Total $ 26,382,508 $ 26,478,214 $ 22,794,194 $ — $ 3,684,020 As of December 31, 2014 Financial Assets Carrying Value Estimated Fair Value Level 1 Level 2 Level 3 Cash and cash equivalents $ 15,826,515 $ 15,826,515 $ 15,826,515 $ — $ — Cost-basis investments 2,516,608 2,675,817 — — 2,675,817 Accrued dividends and interest 1,063,837 1,063,837 1,063,837 — — Total $ 19,406,960 $ 19,566,169 $ 16,890,352 $ — $ 2,675,817 The following table presents a reconciliation of the Company’s assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3), which are all ARS securities, for the twelve months ended December 31, 2015 and 2014 : Changes in fair value during the year ended December 31: 2015 2014 Beginning balance at January 1 $ 939,100 $ 935,700 Redemptions and sales — — Realized gain – included in net realized (loss) gain on investments — — Realized loss – included in net realized (loss) gain on investments — — Unrealized gain – included in other comprehensive income 800 3,400 Ending balance at December 31 $ 939,900 $ 939,100 Certain cost-basis investments are measured at estimated fair value on a non-recurring basis, such as investments that are determined to be other-than temporarily impaired during the period and recorded at estimated fair value in the Consolidated Financial Statements as of December 31, 2015 and 2014 . The following table summarizes the corresponding estimated fair value hierarchy of such investments at December 31, 2015 and 2014 and the related impairments recognized: December 31, 2015 Valuation Method Impaired Level 1 Level 2 Level 3 Total at Estimated Fair Value Impairment Losses Cost-basis investments Fair Value Yes $ — $ — $ 163,350 $ 163,350 $ (233,069 ) Total cost-basis investments and other assets $ — $ — $ 163,350 $ 163,350 $ (233,069 ) December 31, 2014 Valuation Method Impaired Level 1 Level 2 Level 3 Total at Estimated Fair Value Impairment Losses Cost-basis investments Fair Value Yes $ — $ — $ 22,682 $ 22,682 $ (10,062 ) Total cost-basis investments and other assets $ — $ — $ 22,682 $ 22,682 $ (10,062 ) |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment and estimated useful lives at December 31 are summarized as follows: 2015 2014 Land $ 1,122,582 $ 1,107,582 Office buildings and improvements (25 years) 3,495,338 3,416,096 Furniture, fixtures and equipment (3 to 10 years) 8,948,535 7,159,250 Automobiles (3 years) 968,210 847,905 Total 14,534,665 12,530,833 Less accumulated depreciation (7,385,714 ) (7,070,028 ) Property and equipment, net $ 7,148,951 $ 5,460,805 Included within furniture, fixtures and equipment is software developed by the Company for internal use. Capitalized costs include both direct and indirect costs, such as payroll costs of employees associated with developing software, incurred during the software development stage. |
Reinsurance
Reinsurance | 12 Months Ended |
Dec. 31, 2015 | |
Reinsurance Disclosures [Abstract] | |
Reinsurance | Reinsurance The Company assumes and cedes reinsurance with other insurance companies in the normal course of business. Premiums assumed and ceded were approximately $34,000 and $215,000 , respectively, for 2015 , $38,000 and $140,000 , respectively, for 2014 and $6,000 and $211,000 , respectively, for 2013. Ceded reinsurance is comprised of excess of loss treaties, which outline the conditions in which the reinsurance company will pay claims and protect against losses over certain agreed amounts. The Company remains liable to the insured for claims under ceded insurance policies in the event that the assuming insurance companies are unable to meet their obligations under these contracts. The Company has not paid or recovered any reinsured losses during the three years ended December 31, 2015 . |
Reserves for Claims
Reserves for Claims | 12 Months Ended |
Dec. 31, 2015 | |
Liability for Future Policy Benefits and Unpaid Claims and Claims Adjustment Expense [Abstract] | |
Reserves for Claims | Reserves for Claims Changes in the reserves for claims for the years ended December 31 are summarized as follows based on the year in which the policies were written: 2015 2014 2013 Balance, beginning of period $ 36,677,000 $ 35,360,000 $ 39,078,000 Provision (benefit) related to: Current year 7,295,013 6,860,335 7,239,628 Prior year (2,816,519 ) (1,630,619 ) (7,811,224 ) Total provision (benefit) charged to operations 4,478,494 5,229,716 (571,596 ) Claims paid, net of recoveries, related to: Current year (97,116 ) (102,947 ) (110,240 ) Prior year (3,270,378 ) (3,809,769 ) (3,036,164 ) Total claims paid, net of recoveries (3,367,494 ) (3,912,716 ) (3,146,404 ) Balance, end of year $ 37,788,000 $ 36,677,000 $ 35,360,000 The Company continually refines its reserve estimates as current loss experience develops and credible data emerges. Movements in the reserves related to prior periods were primarily the result of changes to estimates to better reflect the latest reported loss data. The 2015 calendar year change in the provision relating to prior years resulted mostly from changes to certain actuarial inputs and favorable development in 2015 versus the prior year related primarily to policy years 2009 through 2014. Due to variances between actual and expected loss payments, loss development is subject to significant variability. The Company does not recognize claim recoveries until an actual payment has been received by the Company. The Company realized claim recoveries of approximately $467,000 , $790,000 and $1,165,000 during 2015 , 2014 and 2013 , respectively. The provision (benefit) for claims as a percentage of net premiums written was 4.0% , 4.8% and (0.5)% in 2015 , 2014 and 2013 , respectively. A large claim is defined as a claim with incurred losses exceeding $250,000 . Due to the small volume of large claims, the long-tail nature of title insurance claims and the inherent uncertainty in loss emergence patterns, large claim activity can vary significantly between policy years. The estimated development of large claims by policy year is therefore subject to significant changes as experience develops. During 2013 certain actuarial inputs were changed to reflect recent trends. The Company considers these modifications in actuarial inputs to be a change in estimate. The Company believes that these changes in actuarial inputs were necessary in response to favorable reserve development and claims experience incurred in several recent reporting periods. The approximate impact of this change in estimate for the year ended December 31, 2013 was a reduction of $2,200,000 to the reserves for claims in the Consolidated Balance Sheets, and in the Consolidated Statements of Income a decrease of $2,200,000 to the provision (benefit) for claims, an increase of $750,000 in the provision for income taxes and an increase of $1,450,000 in net income, or $0.71 per basic share and $0.70 per diluted share, compared with the amounts that would have been recorded under the Company’s prior estimate. This change in estimate, coupled with several recent policy years which continued to emerge favorably in comparison with prior expectations, contributed to a benefit in the claims provision for the 2013 year. The change in estimate was primarily driven by the following: • changing the specific weightings used in performing certain actuarial methods, including weighting between policy years and weighting of title industry loss data; • adjusting for premium rate changes and the Company’s improved underwriting efforts related to construction business; and • increasing the ratios used to estimate projected payments of unallocated loss adjustment expenses to more accurately reflect expected payments. A summary of the Company’s loss reserves, broken down into its components of known title claims and IBNR, follows: 2015 % 2014 % Known title claims $ 5,066,469 13.4 $ 5,364,645 14.6 IBNR 32,721,531 86.6 31,312,355 85.4 Total loss reserves $ 37,788,000 100.0 $ 36,677,000 100.0 In management’s opinion, the reserves are adequate to cover claim losses which might result from pending and future claims. |
Earnings Per Common Share and S
Earnings Per Common Share and Share Awards | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Common Share and Share Awards | Earnings Per Common Share and Share Awards Basic earnings per common share is computed by dividing net income attributable to the Company by the weighted average number of common shares outstanding during the reporting period. Diluted earnings per common share is computed by dividing net income attributable to the Company by the combination of dilutive potential common stock, comprised of shares issuable under the Company’s share-based compensation plans and the weighted average number of common shares outstanding during the reporting period. Dilutive common share equivalents include the dilutive effect of in-the-money share-based awards, which are calculated based on the average share price for each period using the treasury stock method. Under the treasury stock method, when share-based awards are exercised, (a) the exercise price of a share-based award; (b) the amount of compensation cost, if any, for future service that the Company has not yet recognized; and (c) the amount of estimated tax benefits that would be recorded in additional paid-in capital, if any, are assumed to be used to repurchase shares in the current period. The incremental dilutive potential common shares, calculated using the treasury stock method, were 5,439 , 5,774 and 20,459 for 2015 , 2014 and 2013 , respectively. The following table sets forth the computation of basic and diluted earnings per share for the years ended December 31: For the Years Ended December 31, 2015 2014 2013 Net income attributable to the Company $ 12,533,905 $ 9,648,975 $ 14,708,210 Weighted average common shares outstanding – Basic 1,984,360 2,031,760 2,056,169 Incremental shares outstanding assuming the exercise of dilutive stock options and SARs (share-settled) 5,439 5,774 20,459 Weighted average common shares outstanding – Diluted 1,989,799 2,037,534 2,076,628 Basic earnings per common share $ 6.32 $ 4.75 $ 7.15 Diluted earnings per common share $ 6.30 $ 4.74 $ 7.08 There were no potential shares excluded from the computation of diluted earnings per share in 2015 , 2014 and 2013 . The Company has adopted employee stock award plans under which restricted stock, and options or stock appreciation rights (“SARs”) to acquire shares (not to exceed 500,000 shares) of the Company’s stock, may be granted to key employees or directors of the Company at a price not less than the market value on the date of grant. SARs and options (which have predominantly been incentive stock options) awarded under the plans thus far generally expire in five to ten years from the date of grant and are exercisable and vest: immediately; within one year ; or at 10% to 20% per year beginning on the date of grant. All SARs issued to date have been share-settled only. A summary of share-based award transactions for all share-based award plans follows: Number Of Shares Weighted Average Exercise Price Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding as of January 1, 2013 98,150 $ 30.74 3.17 $ 2,871,710 SARs granted 3,000 71.59 SARs exercised (79,500 ) 28.77 Options exercised (2,650 ) 28.63 Outstanding as of December 31, 2013 19,000 $ 45.74 3.43 $ 669,610 SARs granted 4,500 68.70 SARs exercised (1,500 ) 49.04 Options exercised (1,000 ) 27.21 Outstanding as of December 31, 2014 21,000 $ 51.30 3.64 $ 453,510 SARs granted 4,500 73.00 SARs exercised (2,000 ) 47.88 Options exercised (1,500 ) 36.79 Outstanding as of December 31, 2015 22,000 $ 57.04 3.93 $ 945,055 Exercisable as of December 31, 2015 20,875 $ 56.18 3.80 $ 914,680 Unvested as of December 31, 2015 1,125 $ 73.00 6.39 $ 30,375 The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the quoted price of the Company’s common stock at December 31, 2015 . The intrinsic values of options exercised during 2015 , 2014 and 2013 were approximately $104,000 , $82,000 and $3,486,000 , respectively. There were no options outstanding at December 31, 2015 . The following tables summarize information about SARs outstanding at December 31, 2015 : SARs Outstanding at Year-End SARs Exercisable at Year-End Range of Exercise Prices Number Outstanding Weighted Average Remaining Contractual Life Weighted Average Exercise Price Number Exercisable Weighted Average Exercise Price $ 32.00 — $ 32.00 2,000 0.39 $ 32.00 2,000 $ 32.00 33.31 — 33.31 2,500 1.38 33.31 2,500 33.31 36.80 — 73.00 17,500 4.70 63.30 16,375 62.63 $ 32.00 — $ 73.00 22,000 3.93 $ 57.05 20,875 $ 56.18 In 2015 , 4,500 SARs vested with a fair value of $137,762 . During the second quarters of 2015 , 2014 and 2013 , the Company issued share-settled SARs to the directors of the Company. SARs give the holder the right to receive stock equal to the appreciation in the value of shares of stock from the grant date for a specified period of time, and as a result, are accounted for as equity instruments. The fair value of each award is estimated on the date of grant using the Black-Scholes option valuation model with the weighted average assumptions noted in the table shown below. Expected volatilities are based on both the implied and historical volatility of the Company’s stock. The Company uses historical data to project SAR exercises and pre-exercise forfeitures within the valuation model. The expected term of awards represents the period of time that SARs granted are expected to be outstanding. The interest rate assumed for the expected life of the award is based on the U.S. Treasury yield curve in effect at the time of the grant. The weighted average fair values for the SARs issued during 2015 , 2014 and 2013 were $31.16 , $28.98 and $27.55 , respectively, and were estimated using the weighted average assumptions shown in the table below. 2015 2014 2013 Expected Life in Years 7.0 6.9 5.0 Volatility 40.7% 39.9% 44.6% Interest Rate 2.0% 2.1% 1.3% Yield Rate 0.4% 0.4% 0.5% There was approximately $138,000 , $121,000 and $84,000 of compensation expense relating to SARs or options vesting on or before December 31, 2015 , 2014 and 2013 , respectively, included in salaries, employee benefits and payroll taxes in the Consolidated Statements of Income. As of December 31, 2015 , there was approximately $35,000 of total unrecognized compensation cost related to unvested share-based compensation arrangements granted under the Company’s stock award plans. That cost is expected to be recognized over a weighted average period of approximately 3 months . The estimated weighted average grant-date fair value of SARs granted for the years ended December 31 was as follows: For the Years Ended December 31, 2015 2014 2013 Exercise price equal to market price on date of grant: Weighted average market price $ 73.00 $ 68.70 $ 71.59 Weighted average grant-date fair value $ 31.16 $ 28.98 $ 27.55 There have been no stock options or SARs granted where the exercise price was less than the market price on the date of grant. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The components of income tax expense for the years ended December 31 are summarized as follows: For the Years Ended December 31, 2015 2014 2013 Current: Federal $ 4,179,000 $ 3,121,000 $ 4,873,000 State 34,000 84,000 69,000 Total current 4,213,000 3,205,000 4,942,000 Deferred: Federal 976,624 620,156 1,805,215 State 38,376 (9,156 ) (1,215 ) Total deferred 1,015,000 611,000 1,804,000 Total $ 5,228,000 $ 3,816,000 $ 6,746,000 For state income tax purposes, ITIC and NITIC generally pay only a gross premium tax found in premium and retaliatory taxes in the Consolidated Statements of Income. At December 31, the approximate tax effect of each component of deferred income tax assets and liabilities is summarized as follows: For the Years Ended December 31, 2015 2014 Deferred income tax assets: Accrued benefits and retirement services $ 3,262,719 $ 3,061,144 Allowance for doubtful accounts 1,199,777 1,033,624 Other-than-temporary impairment of assets 428,614 323,089 Excess of book over tax depreciation — 90,409 Postretirement benefit obligation 59,108 40,183 Reinsurance and commission payable 13,752 15,668 Net operating loss carryforward 22,000 25,000 Other 426,463 305,119 Total 5,412,433 4,894,236 Deferred income tax liabilities: Net unrealized gain on investments 6,073,431 6,781,994 Recorded reserves for claims, net of statutory premium reserves 3,322,336 2,871,114 Excess of tax over book depreciation 986,422 — Other 733,250 656,621 Total 11,115,439 10,309,729 Net deferred income tax liabilities $ (5,703,006 ) $ (5,415,493 ) At December 31, 2015 and 2014 , no valuation allowance was recorded. Based upon the Company’s historical results of operations, the existing financial condition of the Company and management’s assessment of all other available information, management believes that it is more likely than not that the benefit of these deferred income tax assets will be realized. A reconciliation of income tax as computed for the years ended December 31 at the U.S. federal statutory income tax rate of 34.4% for 2015, 34.3% for 2014 and 34.1% for 2013, respectively, to income tax expense follows: For the Years Ended December 31, 2015 2014 2013 Anticipated income tax expense $ 6,115,306 $ 4,626,555 $ 7,346,074 Increase (decrease) related to: State income taxes, net of federal income tax benefit 22,304 55,188 45,471 Tax-exempt interest income (net of amortization) (981,712 ) (876,365 ) (772,545 ) Other, net 72,102 10,622 127,000 Provision for income taxes $ 5,228,000 $ 3,816,000 $ 6,746,000 In accounting for uncertainty in income taxes, the Company is required to recognize in its financial statements the impact of a tax position if that position is more likely than not of being sustained on an audit, based on the technical merits of the position. In this regard, an uncertain tax position represents the Company’s expected treatment of a tax position taken in a filed tax return, or planned to be taken in a future tax return, that has not been reflected in measuring income tax expense for financial reporting purposes. There were no unrecognized tax benefits or liabilities as of December 31, 2015 . The amount of unrecognized tax benefit or liability may increase or decrease in the future for various reasons, including adding amounts for current tax year positions, expiration of open income tax returns due to the expiration of the applicable statute of limitations, changes in management’s judgment about the level of uncertainty, status of examinations, litigation and legislative activity and the additions or eliminations of uncertain tax positions. The Company’s policy is to report interest and penalties related to income taxes in the other line item in the Consolidated Statements of Income. The Company, or one of its subsidiaries, files income tax returns in the U.S. federal jurisdiction and various states. With few exceptions, the Company is no longer subject to U.S. federal or state and local examinations by taxing authorities for years before 2012. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2015 | |
Leases [Abstract] | |
Leases | Leases The Company leases certain office facilities and equipment under operating leases. Rental expense also includes occasional rental of automobiles. Rent expense totaled approximately $793,000 , $766,000 , and $699,000 in 2015 , 2014 and 2013 , respectively. The future minimum lease payments under operating leases that have initial or remaining noncancelable lease terms in excess of one year as of December 31, 2015 , are summarized as follows: Year Ended: 2016 $ 658,060 2017 448,792 2018 236,062 2019 107,124 2020 95,570 Thereafter 81,397 Total $ 1,627,005 |
Retirement Agreements and Other
Retirement Agreements and Other Postretirement Benefit Plan | 12 Months Ended |
Dec. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Retirement Agreements and Other Postretirement Benefit Plan | Retirement Agreements and Other Postretirement Benefit Plan The Company has a 401(k) savings plan. In order to participate in the plan, individuals must have worked at the Company for at least 3 months. In order to be eligible for employer contributions, individuals must be employed for one full year and work at least 1,000 hours annually. The Company makes a 3% Safe Harbor contribution and also has the option annually to make a discretionary profit share contribution. Individuals may elect to make contributions up to the maximum deductible amount as determined by the Internal Revenue Code. Expenses related to the 401(k) plan were approximately $741,000 , $676,000 and $579,000 for 2015 , 2014 and 2013 , respectively. In November 2003, ITIC, a wholly owned subsidiary of the Company, entered into employment agreements with the Chief Executive Officer, Chief Financial Officer and Chief Operating Officer of ITIC. These individuals also serve as the Chairman, President and Executive Vice President, respectively, of the Company. The agreements provide compensation and life, health, dental and vision benefits upon the occurrence of specific events, including death, disability, retirement, termination without cause or upon a change in control. The employment agreements also prohibit each of these executives from competing with ITIC and its parent, subsidiaries and affiliates in the North Carolina while employed by ITIC and for a period of two years following termination of their employment. In addition, during the second quarter of 2004, ITIC entered into nonqualified deferred compensation plan agreements with these executives. The amount accrued for all agreements at December 31, 2015 and 2014 was approximately $7,818,000 and $7,111,000 , respectively, which includes postretirement compensation and health benefits, and was calculated based on the terms of the contract. Both the 2015 and 2014 accruals are included in the accounts payable and accrued liabilities line item of the Consolidated Balance Sheets. These executive contracts are accounted for on an individual contract basis. On December 24, 2008, the executive contracts were amended effective January 1, 2009 to bring them into compliance with Section 409A of the Internal Revenue Code, and were amended and restated to provide for an annual cash payment to the officers equal to the amounts the Company would have contributed to their accounts under its 401(k) plan if such contributions were not limited by the federal tax laws, less the amount of any contributions that the Company actually makes to their accounts under the Company’s 401(k) plan. On November 17, 2003, ITIC entered into employment agreements with key executives that provide for the continuation of certain employee benefits upon retirement. The executive employee benefits include health insurance, dental insurance, vision insurance and life insurance. The benefits are unfunded. Estimated future benefit payouts expected to be paid for each of the next five years are $9,119 in 2016, $13,456 in 2017, $18,511 in 2018, $20,198 in 2019, $22,007 in 2020 and $192,134 in the next five years thereafter. Cost of the Company’s postretirement benefits included the following components: 2015 2014 2013 Net periodic benefit cost Service cost – benefits earned during the year $ 16,748 $ 14,667 $ 15,782 Interest cost on the projected benefit obligation 30,772 30,472 28,412 Amortization (accretion) of unrecognized prior service cost 4,390 2,217 (1,518 ) Amortization of unrecognized loss 3,514 — 6,293 Net periodic benefits cost at end of year $ 55,424 $ 47,356 $ 48,969 The Company is required to recognize the funded status (i.e., the difference between the fair value of the assets and the accumulated postretirement benefit obligations of its postretirement benefits) in its Consolidated Balance Sheet, with a corresponding adjustment to accumulated other comprehensive income, net of tax. The net amount in accumulated other comprehensive income is $(173,812) , $(114,726) net of tax, for December 31, 2015 , and $(118,150) , $(77,988) net of tax, for December 31, 2014 , and represents the net unrecognized actuarial losses and unrecognized prior service costs. The effects of the funded status on the Company’s Consolidated Balance Sheets at December 31, 2015 and 2014 are presented in the following table: 2015 2014 Funded status Actuarial present value of future benefits: Fully eligible active employee $ (483,985 ) $ (409,492 ) Non-eligible active employees (398,638 ) (362,045 ) Plan assets — — Funded status of accumulated postretirement benefit obligation, recognized in other liabilities $ (882,623 ) $ (771,537 ) Development of the accumulated postretirement benefit obligation for the years ended December 31, 2015 and 2014 includes the following: 2015 2014 Accrued postretirement benefit obligation at beginning of year $ (771,537 ) $ (679,277 ) Service cost – benefits earned during the year (16,748 ) (14,667 ) Interest cost on projected benefit obligation (30,772 ) (30,472 ) Actuarial loss (63,566 ) (47,121 ) Accrued postretirement benefit obligation at end of year $ (882,623 ) $ (771,537 ) The changes in amounts related to accumulated other comprehensive income, pre-tax, are as follows: 2015 2014 Balance at beginning of year $ 118,150 $ 73,246 Components of accumulated other comprehensive income: Unrecognized prior service cost (4,390 ) (2,217 ) Amortization of loss, net (3,514 ) — Actuarial loss 63,566 47,121 Balance at end of year $ 173,812 $ 118,150 The amounts currently in accumulated other comprehensive income, pre-tax, that will be reclassified to the Consolidated Statements of Income and recognized as components of net periodic benefit costs in 2015 are: Projected 2016 Amortization of unrecognized prior service cost $ — Amortization of unrecognized loss 8,941 Net periodic benefit cost at end of year $ 8,941 Assumed health care cost trend rates do have an effect on the amounts reported for the postretirement benefit obligations. The following illustrates the effects on the net periodic postretirement benefit cost (“NPPBC”) and the accumulated postretirement benefit obligation (“APBO”) of a one percentage point increase and one percentage point decrease in the assumed health care cost trend rate as of December 31, 2015 : One Percentage Point Increase One Percentage Point Decrease Net periodic postretirement benefit cost Effect on the service cost component $ 2,600 $ (1,989 ) Effect on interest cost 7,339 (5,721 ) Total effect on the net periodic postretirement benefit cost $ 9,939 $ (7,710 ) Accumulated postretirement benefit obligation (including active employees who are not fully eligible) Effect on those currently receiving benefits (retirees and spouses) $ — $ — Effect on active fully eligible 81,657 (65,192 ) Effect on actives not yet eligible 101,813 (77,845 ) Total effect on the accumulated postretirement benefit obligation $ 183,470 $ (143,037 ) |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Legal Proceedings. The Company and its subsidiaries are involved in legal proceedings that are incidental to their business. In the Company’s opinion, based on the present status of these proceedings, any potential liability of the Company or its subsidiaries with respect to these legal proceedings, will not, in the aggregate, be material to the Company’s consolidated financial condition or operations. Regulation . The Company’s title insurance and trust subsidiaries are regulated by various federal, state and local governmental agencies and are subject to various audits and inquiries. It is the opinion of management based on its present expectations that these audits and inquiries will not have a material impact on the Company’s consolidated financial condition or operations. Escrow and Trust Deposits . As a service to its customers, the Company, through ITIC, administers escrow and trust deposits representing earnest money received under real estate contracts, undisbursed amounts received for settlement of mortgage loans and indemnities against specific title risks. Cash held by the Company for these purposes was approximately $20,510,000 and $18,674,000 as of December 31, 2015 and 2014 , respectively. These amounts are not considered assets of the Company and, therefore, are excluded from the accompanying Consolidated Balance Sheets. However, the Company remains contingently liable for the disposition of these deposits. Like-Kind Exchange Proceeds . In administering tax-deferred property exchanges, the Company’s subsidiary, Investors Title Exchange Corporation (“ITEC”), serves as a qualified intermediary for exchanges, holding the net sales proceeds from relinquished property to be used for purchase of replacement property. Another Company subsidiary, Investors Title Accommodation Corporation (“ITAC”), serves as exchange accommodation titleholder and, through limited liability companies (“LLCs”) that are wholly owned subsidiaries of ITAC, holds property for exchangers in reverse exchange transactions. Like-kind exchange deposits and reverse exchange property totaled approximately $171,010,000 and $82,477,000 as of December 31, 2015 and 2014 , respectively. These amounts are not considered assets of the Company and, therefore, are excluded from the accompanying Consolidated Balance Sheets; however, the Company remains contingently liable for the disposition of the transfers of property, disbursements of proceeds and the return on the proceeds at the agreed upon rate. Exchange services revenues include earnings on these deposits; therefore, investment income is shown as other revenue rather than investment income. These like-kind exchange funds are primarily invested in money market and other short-term investments. Agency Relationship. On July 1, 2015, Title Resource Group LLC's wholly owned subsidiary, title insurer Texas American Title Company, acquired the assets of ITCOA, LLC, which does business throughout Texas as Independence Title. In 2015 , 2014 and 2013 Independence Title originated 10.3% , 23.6% and 16.4% , respectively, of the net premiums written for the Company. Independence Title is under no legal commitment to remit a minimum amount of premiums to the Company, and could cease doing so at any time. A continued significant decline in business originated by Independence Title for the Company, whether due to that business being diverted to its new title insurer owner or otherwise, could have a material negative impact on the Company's premiums written. Any reduction in premiums would be largely offset by related reductions in commissions, premium and income taxes, the provision for claims and other operating expenses. The Company did not have any ownership interest in Independence Title before or after the July 1, 2015 acquisition by Texas American Title Company. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The Company has one reportable segment, title insurance services. The remaining immaterial segments have been combined into a group called “All Other.” The title insurance segment primarily issues title insurance policies through approved attorneys from underwriting offices and through independent issuing agents. Title insurance policies insure titles to real estate. Provided below is selected financial information about the Company’s operations by segment for the periods ended December 31, 2015 , 2014 and 2013 : 2015 Title Insurance All Other Intersegment Eliminations Total Insurance and other services revenues $ 118,144,981 $ 6,479,484 $ (1,839,549 ) $ 122,784,916 Investment income 4,073,857 574,132 (116,670 ) 4,531,319 Net realized loss on investments (13,603 ) (102,560 ) — (116,163 ) Total revenues $ 122,205,235 $ 6,951,056 $ (1,956,219 ) $ 127,200,072 Operating expenses 104,594,829 6,598,055 (1,769,865 ) 109,423,019 Income before income taxes $ 17,610,406 $ 353,001 $ (186,354 ) $ 17,777,053 Total assets $ 163,582,898 $ 47,939,131 $ — $ 211,522,029 2014 Title Insurance All Other Intersegment Eliminations Total Insurance and other services revenues $ 114,279,532 $ 5,904,059 $ (1,592,100 ) $ 118,591,491 Investment income 3,835,209 517,628 (93,336 ) 4,259,501 Net realized gain on investments 213,709 54,585 — 268,294 Total revenues $ 118,328,450 $ 6,476,272 $ (1,685,436 ) $ 123,119,286 Operating expenses 105,290,627 5,862,577 (1,522,416 ) 109,630,788 Income before income taxes $ 13,037,823 $ 613,695 $ (163,020 ) $ 13,488,498 Total assets $ 153,072,950 $ 44,966,260 $ — $ 198,039,210 2013 Title Insurance All Other Intersegment Eliminations Total Insurance and other services revenues $ 118,153,904 $ 5,507,069 $ (1,499,884 ) $ 122,161,089 Investment income 3,599,106 388,838 (93,336 ) 3,894,608 Net realized gain (loss) on investments 225,661 (29,861 ) — 195,800 Total revenues $ 121,978,671 $ 5,866,046 $ (1,593,220 ) $ 126,251,497 Operating expenses 99,899,804 6,239,155 (1,430,200 ) 104,708,759 Income (loss) before income taxes $ 22,078,867 $ (373,109 ) $ (163,020 ) $ 21,542,738 Total assets $ 146,110,146 $ 42,195,670 $ — $ 188,305,816 |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders’ Equity On November 12, 2002, the Company’s Board of Directors amended the Company’s Articles of Incorporation, creating a series of Class A Junior Participating Preferred Stock (the “Class A Preferred Stock”). The Class A Preferred Stock is senior to common stock in dividends or distributions of assets upon liquidations, dissolutions or winding up of the Company. Dividends on the Class A Preferred Stock are cumulative and accrue from the quarterly dividend payment date. Each share of Class A Preferred Stock entitles the holder thereof to 100 votes on all matters submitted to a vote of shareholders of the Company. These shares were reserved for issuance under the Shareholder Rights Plan (the “Plan”), which was adopted on November 21, 2002, by the Company’s Board of Directors. Under the terms of the Plan, the Company’s common stock acquired by a person or a group buying 15% or more of the Company’s common stock would be diluted, except in transactions approved by the Board of Directors. In connection with the Plan, the Company’s Board of Directors declared a dividend distribution of one right (a “Right”) for each outstanding share of the Company’s common stock paid on December 16, 2002, to shareholders of record at the close of business on December 2, 2002. Each Right entitles the registered holder to purchase from the Company a unit (a “Unit”) consisting of one one-hundredth of a share of Class A Preferred Stock. Under the Plan, the Rights detach and become exercisable upon the earlier of (a) ten ( 10 ) days following public announcement that a person or group of affiliated or associated persons has acquired, or obtained the right to acquire, beneficial ownership of 15% or more of the outstanding shares of the Company’s common stock, or (b) ten (10) business days following the commencement of, or first public announcement of the intent of a person or group to commence, a tender offer or exchange offer that would result in a person or group beneficially owning 15% or more of such outstanding shares of the Company’s common stock. The exercise price, the kind and the number of shares covered by each right are subject to adjustment upon the occurrence of certain events described in the Plan. If any person or group of affiliated or associated persons acquires beneficial ownership of 15% or more of the outstanding common stock, each holder of a Right (other than the acquiring person or group) will have the right to buy, at the exercise price, common stock of the Company having a market value of twice the exercise price. If the Company is acquired in a merger or consolidation in which the Company is not the surviving corporation, or the Company engages in a merger or consolidation in which the Company is the surviving corporation and the Company’s common stock is changed or exchanged, or more than 50% of the Company’s assets or earning power is sold or transferred, the Rights entitle a holder (other than the acquiring person or group) to buy, at the exercise price, stock of the acquiring company having a market value equal to twice the exercise price. At any time after a person or group of affiliated or associated persons has acquired beneficial ownership of 15% or more of the outstanding common stock and prior to the acquisition by such person or group of 50% or more of the outstanding common stock, the Company’s Board of Directors may exchange the Rights (other than the Rights owned by such person or group), in whole or in part, at an exchange ratio of one share of the Company’s common stock, or one one-hundredth of a share of Preferred Stock, per Right. The Rights are redeemable upon action by the Board of Directors at a price of $0.01 per right at any time before they become exercisable. Until the Rights become exercisable, they are evidenced only by the common stock certificates and are transferred with and only with such certificates. On October 31, 2012, the Plan was amended to, among other things, extend the expiration date of the plan from November 11, 2012 to October 31, 2022 and increase the exercise price of the stock purchase rights from $80 per unit to $220 per unit. In connection with the amendments to the shareholders’ rights plan, the Board of Directors of the Company also amended the Company’s Articles of Incorporation to increase the number of shares designated under the rights plan as Series A Participating Preferred Stock from 100,000 shares to 200,000 shares. There were 1,000,000 shares of Preferred Stock authorized as of December 31, 2015 and 2014 , with 200,000 , being designated Class A Junior Participating Preferred Stock. |
Concentration of Credit Risk
Concentration of Credit Risk | 12 Months Ended |
Dec. 31, 2015 | |
Risks and Uncertainties [Abstract] | |
Concentration of Credit Risk | Concentration of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents. The Company invests its cash and cash equivalents into high credit quality security instruments. Deposits which exceed $250,000 at each institution are not insured by the Federal Deposit Insurance Corporation (“FDIC”). Of the $21.8 million in cash and cash equivalents at December 31, 2015 , $21.3 million was not insured by the FDIC. Of the $15.8 million in cash and cash equivalents at December 31, 2014, $15.3 million was not insured by the FDIC. The Company mitigates the risk of having cash and cash equivalents not insured by the FDIC by monitoring the credit quality of the financial institutions in which the funds are held. |
Business Concentration
Business Concentration | 12 Months Ended |
Dec. 31, 2015 | |
Risks and Uncertainties [Abstract] | |
Business Concentration | Business Concentration The Company generates a significant amount of title insurance premiums in Texas, North Carolina and South Carolina. In 2015 , 2014 and 2013 , Texas accounted for 22.4% , 36.5% and 26.8% of total title premiums, respectively. In 2015 , 2014 and 2013 , North Carolina accounted for 32.8% , 28.4% and 27.4% of total title premiums, respectively. In 2015 , 2014 and 2013 , South Carolina accounted for 10.1% , 7.7% and 11.4% of total title premiums, respectively. In 2015 , 2014 and 2013 , the Company had one agent that accounted for 10.3% , 23.6% and 16.4% of net premiums written, respectively. This agent was acquired by another title insurer during 2015. Refer to Note 11 for further information. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions The Company does business with, and has investments in, unconsolidated limited liability companies that are primarily title insurance agencies. The Company utilizes the equity method to account for its investments in these limited liability companies. The following table sets forth the approximate values by year found within each financial statement classification: Financial Statement Classification, 2015 2014 Consolidated Balance Sheets Other investments $ 6,519,000 $ 6,014,000 Premiums and fees receivable $ 719,000 $ 666,000 Financial Statement Classification, Consolidated Statements of Income 2015 2014 2013 Net premiums written $ 14,015,000 $ 11,783,000 $ 12,442,000 Other income $ 2,618,000 $ 2,043,000 $ 1,839,000 Commissions to agents $ 9,700,000 $ 8,049,000 $ 8,465,000 During the second quarter of 2013, the Company repurchased 17,524 shares of Company common stock from officers of the Company at a price of $71.50 per share to cover withholding taxes payable by the officers upon the exercise of SARs. During the fourth quarter of 2013, the Company repurchased 28,130 shares of Company common stock from officers of the Company at a price of $80.01 per share. |
Acquisition
Acquisition | 12 Months Ended |
Dec. 31, 2015 | |
Business Combinations [Abstract] | |
Acquisition | Acquisition Effective August 1, 2015, a subsidiary of the Company, ITIC, acquired a 20% ownership interest in 1st Investors Title Agency, LLC ("1st Investors") for a purchase price of $72,600 . 1st Investors, a Michigan limited liability company, is an insurance agency doing business in the State of Michigan. Prior to August 1, 2015, the Company had an ownership interest in 1st Investors of 45% . The Company's Consolidated Financial Statements include the accounts and operations of 1st Investors, based on the Company's resulting 65% ownership interest at August 1, 2015. ITIC’s purchase of 1st Investors was accounted for using the acquisition method required by ASC 805, Business Combinations . There were no intangible assets or goodwill recorded as a result of the acquisition. In January 2012, ITIC entered into a membership interest purchase and sale agreement under which it agreed to acquire a majority ownership interest of United Title Agency Co., LLC (“United”). United, a Michigan limited liability company, is an insurance agency doing business in the State of Michigan. ITIC’s purchase of United was accounted for using the acquisition method required by ASC 805, Business Combinations . On April 2, 2012, ITIC purchased a 70% ownership interest in United, with both ITIC and the seller having the option to require ITIC to purchase the remaining 30% interest at a later date. ITIC purchased the 70% interest for a purchase price of $1,041,250 . On May 21, 2014, ITIC purchased the remaining 30% ownership interest in United for an additional $515,275 , making United a wholly owned subsidiary of ITIC. The Company recognized the required identifiable intangible assets of United. There was no goodwill recorded as a result of the acquisition. The fair values of intangible assets, all Level 3 inputs, are principally based on values obtained from a third party valuation service. At closing of the initial acquisition, intangible assets included $645,685 relating to a non-compete contract resulting from the acquisition and $836,215 from referral relationships. The non-compete contract is being amortized over a 10 -year period using the straight-line method, starting at a future date when the related employment agreement is terminated. The referral relationships are being amortized over a 12 -year period using the straight-line method. At December 31, 2015 and 2014 , accumulated amortization of intangible assets was $261,315 and $191,631 , respectively. Net intangible assets of $1,220,585 and $1,290,269 are categorized as prepaid expenses and other assets in the Consolidated Balance Sheets as of December 31, 2015 and 2014 . In accordance with ASC 350, Intangibles – Goodwill and Other , management determined that no events or changes in circumstances occurred that would indicate the carrying amount may not be recoverable, and therefore determined that the intangible assets assigned to United were not impaired at December 31, 2015 . The amortization of the non-compete contract will start at a future date when the related employment agreement is terminated. There are currently no plans to terminate the employment agreement, and the Company does not believe it is probable that termination of the employment agreement will occur within the calendar year. Assuming that the amortization of the non-complete agreement begins on the first day of 2017, estimated aggregate amortization expense for each of the five succeeding fiscal years are as follows: Year Ended: 2016 $ 69,685 2017 134,253 2018 134,253 2019 134,253 2020 134,253 Thereafter 613,888 Total $ 1,220,585 A reconciliation of the noncontrolling interest equity of 1st Investors is presented in the Consolidated Statements of Stockholders’ Equity. The following table provides a reconciliation of total redeemable equity of United for the periods ended December 31, 2015 , 2014 and 2013 : Changes in carrying value during the period ended: 2015 2014 2013 Beginning balance at January 1 $ — $ 545,489 $ 493,861 Net income attributable to redeemable noncontrolling interest — 23,523 88,528 Distributions to noncontrolling interest — (168,057 ) (36,900 ) Redeemable noncontrolling interest resulting from subsidiary purchase — (515,275 ) — Adjustment to retained earnings for purchase of noncontrolling interest — 114,320 — Balance, net $ — $ — $ 545,489 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 12 Months Ended |
Dec. 31, 2015 | |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Income The following tables provide changes in the balances of each component of accumulated other comprehensive income, net of tax, for the periods ended December 31, 2015 , 2014 and 2013 : 2015 Unrealized Gains and Losses On Available-for-Sale Securities Postretirement Benefits Plans Total Beginning balance at January 1 $ 12,934,497 $ (77,988 ) $ 12,856,509 Other comprehensive loss before reclassifications (1,355,316 ) (41,954 ) (1,397,270 ) Amounts reclassified from accumulated other comprehensive income (loss) 18,560 5,216 23,776 Net current-period other comprehensive loss (1,336,756 ) (36,738 ) (1,373,494 ) Ending balance $ 11,597,741 $ (114,726 ) $ 11,483,015 2014 Unrealized Gains and Losses On Available-for-Sale Securities Postretirement Benefits Plans Total Beginning balance at January 1 $ 11,395,757 $ (48,353 ) $ 11,347,404 Other comprehensive income (loss) before reclassifications 1,874,111 (31,100 ) 1,843,011 Amounts reclassified from accumulated other comprehensive income (loss) (335,371 ) 1,465 (333,906 ) Net current-period other comprehensive income (loss) 1,538,740 (29,635 ) 1,509,105 Ending balance $ 12,934,497 $ (77,988 ) $ 12,856,509 2013 Unrealized Gains and Losses On Available-for-Sale Securities Postretirement Benefits Plans Total Beginning balance at January 1 $ 8,920,884 $ (102,454 ) $ 8,818,430 Other comprehensive income before reclassifications 2,605,184 50,961 2,656,145 Amounts reclassified from accumulated other comprehensive income (loss) (130,311 ) 3,140 (127,171 ) Net current-period other comprehensive income 2,474,873 54,101 2,528,974 Ending balance $ 11,395,757 $ (48,353 ) $ 11,347,404 The following tables provide significant amounts reclassified out of each component of accumulated other comprehensive income for the periods ended December 31, 2015 , 2014 and 2013 : 2015 Details about Accumulated Other Comprehensive Income Components Amount Reclassified from Accumulated Other Comprehensive Income Affected Line Item in the Consolidated Statements of Income Unrealized gains and losses on available-for-sale securities: Net realized gain on investment $ 718,837 Other-than-temporary impairments (751,059 ) Total $ (32,222 ) Net realized (loss) gain on investment Tax 13,662 Provision for Income Taxes Net of Tax $ (18,560 ) Amortization related to postretirement benefit plans: Prior year service cost $ (4,390 ) Unrecognized loss (3,514 ) Total $ (7,904 ) (a) Tax 2,688 Provision for Income Taxes Net of Tax $ (5,216 ) Reclassifications for the period $ (23,776 ) 2014 Details about Accumulated Other Amount Reclassified from Affected Line Item in the Consolidated Unrealized gains and losses on available-for-sale securities: Net realized gain on investment $ 518,279 Other-than-temporary impairments (14,542 ) Total $ 503,737 Net realized (loss) gain on investment Tax (168,366 ) Provision for Income Taxes Net of Tax $ 335,371 Amortization related to postretirement benefit plans: Prior year service cost $ (2,217 ) Unrecognized loss — Total $ (2,217 ) (a) Tax 752 Provision for Income Taxes Net of Tax $ (1,465 ) Reclassifications for the period $ 333,906 2013 Details about Accumulated Other Amount Reclassified from Affected Line Item in the Consolidated Unrealized gains and losses on available-for-sale securities: Net realized gain on investment $ 229,869 Other-than-temporary impairments (34,070 ) Total $ 195,799 Net realized (loss) gain on investment Tax (65,488 ) Provision for Income Taxes Net of Tax $ 130,311 Accretion (amortization) related to postretirement benefit plans: Prior year service cost $ 1,518 Unrecognized loss (6,293 ) Total $ (4,775 ) (a) Tax 1,635 Provision for Income Taxes Net of Tax $ (3,140 ) Reclassifications for the period $ 127,171 (a) These accumulated other comprehensive income components are not reclassified to net income in their entirety in the same reporting period. The amounts are presented within salaries, employee benefits and payroll taxes on the Consolidated Statements of Income as amortized. Amortization related to postretirement benefit plans is included in the computation of net periodic pension costs, as discussed in Note 10. |
Schedule I
Schedule I | 12 Months Ended |
Dec. 31, 2015 | |
Summary of Investments, Other than Investments in Related Parties [Abstract] | |
Summary of Investments - Other than Investments in Related Parties | SUMMARY OF INVESTMENTS - OTHER THAN INVESTMENTS IN RELATED PARTIES AS OF DECEMBER 31, 2015 Type of Investment Cost (1) Market Value Amount at which shown in the Balance Sheet (2) Fixed maturities: Bonds: General obligations of U.S. states, territories and political subdivisions $ 31,670,491 $ 32,648,914 $ 32,648,914 Special revenue issuer obligations of U.S. states, territories and political subdivisions 40,563,639 42,452,224 42,452,224 Public utilities 11,852,124 12,539,002 12,539,002 Corporate debt securities 17,004,985 17,486,344 17,486,344 Auction rate securities 924,587 939,900 939,900 Total fixed maturities 102,015,826 106,066,384 106,066,384 Equity securities: Common stocks: Public utilities 563,857 778,908 778,908 Banks, trusts and insurance companies 4,839,060 6,242,784 6,242,784 Industrial, miscellaneous and all other 15,988,095 25,916,387 25,916,387 Technology 2,464,861 4,575,385 4,575,385 Total equity securities 23,855,873 37,513,464 37,513,464 Other investments: Short-term investments 6,865,406 6,865,406 6,865,406 Other investments 9,217,947 9,217,947 9,217,947 Total other investments 16,083,353 16,083,353 16,083,353 Total investments (3) $ 141,955,052 $ 159,663,201 $ 159,663,201 (1) Fixed maturities are shown at amortized cost and equity securities are shown at original cost. (2) All fixed maturities presented are classified as available-for-sale and shown at estimated fair value. Equity securities are shown at fair value. (3) The above summary of investments does not include investments in related parties accounted for under the cost and equity methods of accounting in the amount of $888,881 . |
Schedule II
Schedule II | 12 Months Ended |
Dec. 31, 2015 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Condensed Financial Information of Parent Company Only Disclosure [Text Block] | CONDENSED FINANCIAL INFORMATION OF REGISTRANT BALANCE SHEETS AS OF DECEMBER 31, 2015 AND 2014 2015 2014 Assets: Cash and cash equivalents $ 8,347,004 $ 7,942,481 Investments in fixed maturities, available-for-sale 21,779,123 24,358,323 Investments in equity securities, available-for-sale 2,638,330 2,529,982 Short-term investments 3,005,647 284,069 Investments in affiliated companies 99,951,433 96,395,352 Other investments 3,089,550 1,578,236 Premium and fees receivable 43,690 56,428 Other receivables 3,080,245 2,220,330 Income taxes recoverable 1,733,314 1,876,242 Accrued interest and dividends 120,369 128,221 Property, net 2,288,776 2,371,078 Total Assets $ 146,077,481 $ 139,740,742 Liabilities and Stockholders’ Equity Liabilities: Accounts payable and accrued liabilities $ 3,267,274 $ 2,074,347 Deferred income taxes, net 140,325 102,689 Total liabilities 3,407,599 2,177,036 Stockholders’ Equity: Preferred stock (1,000,000 authorized shares; no shares issued) — — Common stock - no par value (10,000,000 authorized shares; 1,949,797 and 2,023,270 shares issued and outstanding 2015 and 2014, respectively, excluding 291,676 shares for 2015 and 2014 of common stock held by the Company’s subsidiary) 1 1 Retained earnings 131,186,866 124,707,196 Accumulated other comprehensive income 11,483,015 12,856,509 Total stockholders’ equity 142,669,882 137,563,706 Total Liabilities and Stockholders’ Equity $ 146,077,481 $ 139,740,742 See notes to Condensed Financial Statements. CONDENSED FINANCIAL INFORMATION OF REGISTRANT STATEMENTS OF INCOME FOR THE YEARS ENDED DECEMBER 31, 2015 , 2014 AND 2013 2015 2014 2013 Revenues: Investment income – interest and dividends $ 535,963 $ 482,711 $ 348,933 Net realized (loss) gain on investments (152,026 ) 9,169 (50,778 ) Rental income 765,134 772,256 748,764 Miscellaneous income 385,058 59,569 68,966 Total 1,534,129 1,323,705 1,115,885 Operating Expenses: Salaries, employee benefits and payroll taxes 651,957 673,729 576,429 Office occupancy and operations 239,176 270,881 408,373 Business development 76,684 49,059 45,022 Taxes – other than payroll and income 213,466 200,718 188,314 Professional and contract labor fees 378,265 192,064 351,093 Other expenses 198,788 193,681 177,810 Total 1,758,336 1,580,132 1,747,041 Equity in Net Income of Affiliated Companies 12,640,260 9,777,925 15,164,894 Income before Income Taxes 12,416,053 9,521,498 14,533,738 Income Tax Benefit (133,000 ) (151,000 ) (263,000 ) Net Income 12,549,053 9,672,498 14,796,738 Net Income Attributable to Noncontrolling Interests (15,148 ) (23,523 ) (88,528 ) Net Income Attributable to the Company $ 12,533,905 $ 9,648,975 $ 14,708,210 Basic Earnings per Common Share $ 6.32 $ 4.75 $ 7.15 Weighted Average Shares Outstanding – Basic 1,984,360 2,031,760 2,056,169 Diluted Earnings per Common Share $ 6.30 $ 4.74 $ 7.08 Weighted Average Shares Outstanding – Diluted 1,989,799 2,037,534 2,076,628 Cash Dividends Paid per Common Share $ 0.40 $ 0.32 $ 0.32 See notes to Condensed Financial Statements. CONDENSED FINANCIAL INFORMATION OF REGISTRANT STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2015 , 2014 AND 2013 2015 2014 2013 Operating Activities Net income $ 12,549,053 $ 9,672,498 $ 14,796,738 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Equity in net earnings of subsidiaries (12,640,260 ) (9,777,925 ) (15,164,894 ) Depreciation 112,690 136,369 136,031 Amortization, net 192,654 210,768 69,969 Issuance of common stock in payment of bonuses and fees 137,759 164,730 76,110 Net loss on disposals of property 1,683 2,722 — Net realized loss (gain) on investments 152,026 (19,231 ) 50,778 Net (earnings) loss from other investments (237,686 ) 322 (32,499 ) Provision (benefit) for deferred income taxes 13,000 (40,000 ) (93,000 ) Increase in receivables (847,177 ) (685,052 ) (146,247 ) Decrease (increase) in income taxes recoverable 142,928 1,354,735 (1,646,373 ) Decrease (increase) in other assets 7,852 (24,650 ) (101 ) Increase (decrease) in accounts payable and accrued liabilities 1,192,927 516,252 (8,118 ) Net cash provided by (used in) operating activities 777,449 1,511,538 (1,961,606 ) Investing Activities Dividends received from subsidiaries 7,630,835 5,051,664 9,252,919 Purchases of available-for-sale securities (260,044 ) (6,883,612 ) (10,360,919 ) Purchases of short-term securities (2,721,578 ) (104,207 ) (58,283 ) Purchases of and net earnings from other investments (2,007,798 ) (964,197 ) (49,485 ) Proceeds from sales and maturities of available-for-sale securities 2,475,557 1,631,987 3,027,896 Proceeds from sales and maturities of short-term securities — 2,033,634 2,748,876 Proceeds from sales and distributions of other investments 734,170 123,017 45,384 Proceeds from sales of other assets — — 4,832 Purchases of property (32,071 ) (5,200 ) (24,820 ) Proceeds from disposals of property — — 7,200 Net cash provided by investing activities 5,819,071 883,086 4,593,600 Financing Activities Repurchases of common stock (5,483,953 ) (1,055,765 ) (4,262,260 ) Exercise of options 54,988 27,100 75,797 Excess tax benefit 26,875 15,999 9,042 Dividends paid (789,907 ) (650,433 ) (657,914 ) Net cash used in financing activities (6,191,997 ) (1,663,099 ) (4,835,335 ) Net Increase (Decrease) in Cash and Cash Equivalents 404,523 731,525 (2,203,341 ) Cash and Cash Equivalents, Beginning of Period 7,942,481 7,210,956 9,414,297 Cash and Cash Equivalents, End of Period $ 8,347,004 $ 7,942,481 $ 7,210,956 Supplemental Disclosures: Income tax payments, net $ 4,598,000 $ 2,699,000 $ 5,583,000 See notes to Condensed Financial Statements. CONDENSED FINANCIAL INFORMATION OF REGISTRANT NOTES TO THE CONDENSED FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2015 , 2014 AND 2013 1. The accompanying Condensed Financial Statements should be read in conjunction with the consolidated financial statements and notes thereto of Investors Title Company and Subsidiaries. 2. Cash dividends paid to Investors Title Company by its wholly owned subsidiaries were as follows: Subsidiaries 2015 2014 2013 Investors Title Insurance Company, net* $ 7,134,823 $ 4,906,664 $ 9,102,919 Investors Title Exchange Corporation 245,000 50,000 50,000 Investors Title Accommodation Corporation 12,000 10,000 — Investors Capital Management Company 9,012 40,000 — Investors Trust Company — — 100,000 Investors Title Commercial Agency, LLC 230,000 45,000 — Total $ 7,630,835 $ 5,051,664 $ 9,252,919 * Total dividends of $7,251,493 , $5,000,000 and $9,196,255 paid to the Parent Company in 2015, 2014 and 2013, respectively, netted with dividends of $116,670 , $93,336 and $93,336 received from the Parent Company in 2015, 2014 and 2013, respectively. |
Schedule III
Schedule III | 12 Months Ended |
Dec. 31, 2015 | |
Supplementary Insurance Information [Abstract] | |
Supplementary Insurance Information | SUPPLEMENTARY INSURANCE INFORMATION FOR THE YEARS ENDED DECEMBER 31, 2015 , 2014 AND 2013 Segment Deferred Policy Acquisition Cost Future Policy Benefits, Losses, Claims and Loss Expenses Unearned Premiums Other Policy Claims and Benefits Payable Premium Revenue Net Investment Income Benefits, Claims. Losses and Settlement Expenses Amortization of Deferred Policy Acquisition Costs Other Operating Expenses Premiums Written Year Ended December 31, 2015 Title Insurance $ — $ 37,788,000 $ — $ 341,191 $ 112,475,686 $ 3,957,187 $ 4,478,494 $ — $ 98,417,207 N/A All Other — — — — — 574,132 — — 6,527,318 N/A $ — $ 37,788,000 $ — $ 341,191 $ 112,475,686 $ 4,531,319 $ 4,478,494 $ — $ 104,944,525 N/A Year Ended December 31, 2014 Title Insurance $ — $ 36,677,000 $ — $ 236,401 $ 109,963,556 $ 3,741,873 $ 5,229,716 $ — $ 98,620,374 N/A All Other — — — — — 517,628 — — 5,780,698 N/A $ — $ 36,677,000 $ — $ 236,401 $ 109,963,556 $ 4,259,501 $ 5,229,716 $ — $ 104,401,072 N/A Year Ended December 31, 2013 Title Insurance $ — $ 35,360,000 $ — $ 389,807 $ 113,886,266 $ 3,505,770 $ (571,596 ) $ — $ 99,093,515 N/A All Other — — — — — 388,838 — — 6,186,840 N/A $ — $ 35,360,000 $ — $ 389,807 $ 113,886,266 $ 3,894,608 $ (571,596 ) $ — $ 105,280,355 N/A |
Schedule IV
Schedule IV | 12 Months Ended |
Dec. 31, 2015 | |
Supplemental Schedule of Reinsurance Premiums for Insurance Companies [Abstract] | |
Reinsurance | REINSURANCE FOR THE YEARS ENDED DECEMBER 31, 2015 , 2014 AND 2013 Gross Amount Ceded to Other Companies Assumed from Other Companies Net Amount Percentages of Amount Assumed to Net Year Ended December 31, 2015 Title Insurance $ 112,656,750 $ 214,667 $ 33,603 $ 112,475,686 0.03 % Year Ended December 31, 2014 Title Insurance $ 110,065,581 $ 140,017 $ 37,992 $ 109,963,556 0.03 % Year Ended December 31, 2013 Title Insurance $ 114,091,457 $ 211,482 $ 6,291 $ 113,886,266 0.01 % |
Schedule V
Schedule V | 12 Months Ended |
Dec. 31, 2015 | |
Valuation and Qualifying Accounts [Abstract] | |
Valuation and Qualifying Accounts | VALUATION AND QUALIFYING ACCOUNTS FOR THE YEARS ENDED DECEMBER 31, 2015 , 2014 AND 2013 Description Balance at Beginning of Period Additions Charged to Costs and Expenses Additions Charge to Other Accounts - Describe Deductions - Describe Balance at End of Period 2015 Premiums Receivable: Valuation Provision $ 3,022,731 $ 6,267,911 $ — $ (5,737,863 ) (a) $ 3,552,779 Reserves for Claims $ 36,677,000 $ 4,478,494 $ — $ (3,367,494 ) (b) $ 37,788,000 2014 Premiums Receivable: Valuation Provision $ 2,620,903 $ 6,287,694 $ — $ (5,885,866 ) (a) $ 3,022,731 Reserves for Claims $ 35,360,000 $ 5,229,716 $ — $ (3,912,716 ) (b) $ 36,677,000 2013 Premiums Receivable: Valuation Provision $ 1,902,581 $ 7,536,381 $ — $ (6,818,059 ) (a) $ 2,620,903 Reserves for Claims $ 39,078,000 $ (571,596 ) $ — $ (3,146,404 ) (b) $ 35,360,000 (a) Canceled premiums (b) Payments of claims, net of recoveries |
Basis Of Presentation and Sig33
Basis Of Presentation and Significant Accounting Policies (Policy) | 12 Months Ended |
Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Principles of Consolidation and Basis of Presentation | Principles of Consolidation and Basis of Presentation – The accompanying Consolidated Financial Statements include the accounts and operations of Investors Title Company and its subsidiaries, and have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”). Earnings attributable to noncontrolling interests in majority-owned insurance agencies, including redeemable noncontrolling interests, are recorded in the Consolidated Statements of Income. Noncontrolling interests representing the portion of equity not related to the Company's ownership interests are recorded in separate sections of the Consolidated Balance Sheets. All intercompany balances and transactions have been eliminated in consolidation. |
Cash and Cash Equivalents | Cash and Cash Equivalents For the purpose of presentation in the Company’s Consolidated Statements of Cash Flows, cash equivalents are highly liquid instruments with remaining original maturities of three months or less. The carrying amount of cash and cash equivalents is a reasonable estimate of fair value due to the short-term maturity at purchase of these instruments. |
Investments in Securities | Investments in Securities Securities for which the Company has the intent and ability to hold to maturity are classified as held-to-maturity and reported at cost, adjusted for amortization of premiums or accretion of discounts, and other-than-temporary declines in fair value. Securities held principally for resale in the near term are classified as trading securities and recorded at fair values. Realized and unrealized gains and losses on trading securities are included in other income. Securities not classified as either trading or held-to-maturity are classified as available-for-sale and reported at fair value with unrealized gains and losses, net of tax and adjusted for other-than-temporary declines in fair value, reported as accumulated other comprehensive income. As of December 31, 2015 and 2014 , all investments in securities are classified as available-for-sale. Securities are regularly reviewed for differences between the cost and estimated fair value of each security for factors that may indicate that a decline in fair value is other-than-temporary. Some factors considered in evaluating whether or not a decline in fair value is other-than-temporary include the duration and extent to which the fair value has been less than cost and the Company’s ability and intent to retain the investment for a period of time sufficient to allow for a recovery in value. Such reviews are inherently uncertain and the value of the investment may not fully recover or may decline in future periods resulting in a realized loss. Fair values of the majority of investments are based on quoted market prices. Realized gains and losses are determined on the specific identification method. Refer to Note 3 for further information regarding investments in securities and fair value. |
Short-term Investments | Short-term Investments Short-term investments are comprised of money market accounts which are invested in short-term funds, time deposits with banks and savings and loan associations, and other investments expected to have maturities or redemptions greater than three months and less than twelve months. The Company monitors any events or changes in circumstances that may have a significant adverse effect on the fair value of these investments. |
Other Investments | Other Investments Other investments consist primarily of investments in title insurance agencies structured as limited liability companies (“LLCs”), which are accounted for under the equity or cost methods of accounting. The aggregate cost of the Company’s cost method investments totaled $3,572,914 and $2,423,408 at December 31, 2015 and 2014 , respectively. The Company monitors any events or changes in circumstances that may have had a significant adverse effect on the fair value of these investments and makes any necessary adjustments. |
Property Acquired in Settlement of Claims | Property Acquired in Settlement of Claims Property acquired in settlement of claims is held for sale and valued at the lower of cost or market. Adjustments to reported estimated realizable values and realized gains or losses on dispositions are recorded as increases or decreases in claim costs. Properties acquired in settlement of claims are included in prepaid expenses and other assets in the Consolidated Balance Sheets. |
Property and Equipment | Property and Equipment Property and equipment are recorded at cost and are depreciated principally under the straight-line method over the estimated useful lives ( 3 to 25 years) of the respective assets. Maintenance and repairs are charged to operating expenses and improvements are capitalized. |
Reserves for Claims | Reserves for Claims Total reserves for all reported and unreported losses the Company incurred through December 31, 2015 are represented by the reserves for claims. The Company’s reserves for unpaid losses and loss adjustment expenses are established using estimated amounts required to settle claims for which notice has been received (reported) and the amount estimated to be required to satisfy incurred claims of policyholders which may be reported in the future. Despite the variability of such estimates, management believes that the reserves are adequate to cover claim losses resulting from pending and future claims for policies issued through December 31, 2015 . The Company continually reviews and adjusts its reserve estimates as necessary to reflect its loss experience and any new information that becomes available. Adjustments resulting from such reviews may be significant. Claims and losses paid are charged to the reserves for claims. Although claims losses are typically paid in cash, occasionally claims are settled by purchasing the interest of the insured or the claimant in the real property. When this event occurs, the acquiring company carries assets at the lower of cost or estimated realizable value, net of any indebtedness on the property. |
Income Taxes | Income Taxes The Company makes certain estimates and judgments in determining income tax expense (benefit) for financial statement purposes. These estimates and judgments occur in the calculation of certain tax assets and liabilities which arise from differences in the timing of recognition of revenue and expense for tax and financial statement purposes. The Company provides for deferred income taxes (benefits) for the tax consequences in future years of temporary differences between the financial statements’ carrying values and the tax bases of assets and liabilities using currently enacted tax rates. The Company establishes a valuation allowance if it believes that it is more likely than not that some or all of its deferred tax assets will not be realized. Refer to Note 8 for further information regarding income taxes. |
Premiums Written and Commissions to Agents | Premiums Written and Commissions to Agents Generally, title insurance premiums are recognized at the time of closing of the related real estate transaction, as the earnings process is then considered complete. Policies or commitments are issued upon receipt of final certificates or preliminary reports with respect to titles. Title insurance commissions earned by the Company’s agents, taxes and a provision for claims losses are recognized as expenses concurrent with recognition of related premium revenue. |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts Company management continually evaluates the collectability of receivables and provides an allowance for doubtful accounts equal to estimated losses expected to be incurred in the collection of premiums and fees receivable. Changes to the allowance for doubtful accounts are reflected within net premiums written in the Consolidated Statements of Income. Amounts are charged off in the period they are deemed to be uncollectible. Quarterly, the Company evaluates the collectability of receivables. Premiums not collected within 7 months are fully reserved. Write-offs of receivables have not been material to the Company. |
Exchange Services Revenue | Exchange Services Revenue Fees are recognized at the signing of a binding agreement and investment earnings are recognized as they are earned. Exchange services revenues are included in other revenues in the Consolidated Statements of Income. |
Fair Values of Financial Instruments | Fair Values of Financial Instruments The carrying amounts reported in the Consolidated Balance Sheets for cash and cash equivalents, short-term investments, premium and fees receivable, accrued interest and dividends, accounts payable, commissions payable, reinsurance payable and current income taxes recoverable/payable approximate fair value due to the short-term nature of these assets and liabilities. Estimated fair values for the majority of investment securities are based on quoted market prices. Auction rate securities (“ARS”) are valued using discounted cash flow models to determine the estimated fair value of these investments. Some of the inputs for determining the fair value of ARS are unobservable in the securities markets and are significant. Refer to Note 3 for further information regarding investments in securities and fair value. |
Comprehensive Income | Comprehensive Income The Company’s accumulated other comprehensive income is comprised of unrealized holding gains/losses on available-for-sale securities, net of tax, and unrecognized prior service cost and unrealized gains/losses associated with postretirement benefit liabilities, net of tax. Accumulated other comprehensive income as of December 31, 2015 consists of $11,597,741 of unrealized holding gains on available-for-sale securities and $114,726 of unrecognized prior service cost and unrecognized actuarial losses associated with postretirement benefit liabilities. Accumulated other comprehensive income as of December 31, 2014 consists of $12,934,497 of unrealized holding gains on available-for-sale securities and $77,988 of unrecognized prior service cost and unrecognized actuarial losses associated with postretirement benefit liabilities. Accumulated other comprehensive income as of December 31, 2013 consists of $11,395,757 of unrealized holding gains on available-for-sale securities and $48,353 of unrecognized prior service cost and unrecognized actuarial losses associated with postretirement benefit liabilities. |
Share-Based Compensation | Share-Based Compensation The Company accounts for share-based compensation in accordance with the fair value based principles required by the Financial Accounting Standards Board (“FASB”). Share-based compensation cost is generally measured at the grant date, based on the estimated fair value of the award, and is recognized as an expense over the employee’s requisite service period. As the share-based compensation expense recognized in the Consolidated Statements of Income is based on awards ultimately expected to vest, it has been reduced for estimated forfeitures. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. |
Other Intangible Assets | Other Intangible Assets The Company’s other intangible assets consist of a non-compete agreement and referral relationships resulting from an agency acquisition and are recorded at the acquisition date fair value. The referral relationships are amortized on a straight-line basis over the useful life and amortization of the non-compete contract will start at a future date when the related employment agreement is terminated. Intangible assets are reviewed for impairment at least quarterly. |
Subsequent Events | Subsequent Events The Company has evaluated and concluded that there were no material subsequent events requiring adjustment or disclosure to its Consolidated Financial Statements. |
Recently Issued Accounting Standards | Recently Issued Accounting Standards In February 2016, the FASB updated guidance to improve financial reporting for leasing transactions. The core principle of the guidance is that lessees will be required to recognize assets and liabilities on the balance sheet for all leases with terms of more than 12 months. A lessee would recognize a liability to make lease payments and a right-of-use asset representing its right to use the underlying asset for the lease term. The accounting applied by a lessor is largely unchanged from current GAAP, with some targeted improvements. Disclosures will be required by lessees and lessors to meet the objective of enabling users of financial statements to assess the amount, timing, and uncertainty of cash flows arising from leases. In transition, both lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The amendments of this update are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company is currently evaluating the impact that the recently issued accounting standard will have on the Company's financial position and results of operations, and is currently uncertain as to whether it will have a material effect. In January 2016, the FASB updated guidance to enhance the reporting model for financial instruments. Among the main principles of the guidance applicable to the Company are provisions to require equity investments, except those accounted for under the equity method of accounting or those that result in consolidation of the investee, to be measured at fair value with changes in fair value recognized in net income; simplify the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment, noting that when a qualitative assessment indicates that impairment exists that an entity is required to measure the investment at fair value; eliminate the requirement to disclose methods and significant assumptions used to estimate the fair value for financial instruments measured at amortized cost; require entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes; require separate presentation of financial assets and financial liabilities by measuring category and form of financial asset on the balance sheet or accompanying notes to the financial statements; and clarify 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. The amendments of this update are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company will be required to apply the amendments of this update by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption, with the amendments related to equity securities without readily determinable fair values being applied prospectively to equity investments that exist as of the date of adoption. The guidance is expected to have a material impact on the Company’s financial condition and results of operations once effective, primarily resulting from fluctuations in security exchanges or markets. In February 2015, the FASB updated guidance to change the analysis that a reporting entity must perform to determine whether it should consolidate certain types of legal entities. All legal entities are subject to reevaluation under the revised consolidation model. Specifically, the amendments: modify the evaluation of whether limited partnerships and similar legal entities are variable interest entities ("VIEs") or voting interest entities; eliminate the presumption that a general partner should consolidate a limited partnership; affect the consolidation analysis of reporting entities that are involved with VIEs, particularly those that have fee arrangements and related party relationships; and provide a scope exception from consolidation guidance for reporting entities that are required to comply with or operate in accordance with certain requirements similar to those for registered money market funds. For public entities, this update becomes effective for annual reporting periods beginning after December 15, 2015, including interim periods within that reporting period. Early adoption is permitted. The Company is currently evaluating the impact that the recently issued accounting standard will have on the Company's financial position and results of operations, but does not expect it to have a material impact. In May 2014, the FASB updated guidance to improve the comparability of revenue recognition practices for entities that either enter into contracts with customers to transfer goods or services or enter into contracts for the transfer of nonfinancial assets, unless those contracts are within the scope of other standards such as insurance contracts or lease standards. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. For public entities, this update originally became effective for interim and annual reporting periods beginning after December 15, 2016. In August 2015, the FASB updated guidance to defer the effective date of the standard by one year. Early adoption is not permitted, although public entities are permitted to elect to adopt the amendments on the original effective date. The Company is currently evaluating the impact that the recently issued accounting standard will have on the Company's financial position and results of operations, but does not expect it to have a material impact. |
Use Of Estimates and Assumptions | Use of Estimates and Assumptions The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosures of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period and accompanying notes. Actual results could differ materially from those estimates and assumptions used. The more significant of these estimates and assumptions include the following: Claims – The Company’s reserves for claims are established using estimated amounts required to settle claims for which notice has been received (reported) and the amount estimated to be required to satisfy incurred claims of policyholders which may be reported in the future (incurred but not reported, or “IBNR”). A provision for estimated future claims payments is recorded at the time policy revenue is recorded as a percentage of premium income. By their nature, title claims can often be complex, vary greatly in dollar amounts, vary in number due to economic and market conditions such as an increase in mortgage foreclosures, and involve uncertainties as to ultimate exposure. In addition, some claims may require a number of years to settle and determine the final liability for indemnity and loss adjustment expense. The payment experience may extend for more than 20 years after the issuance of a policy. Events such as fraud, defalcation and multiple property defects can substantially and unexpectedly cause increases in estimates of losses. Due to the length of time over which claim payments are made and regularly occurring changes in underlying economic and market conditions, these estimates are subject to variability. Management considers factors such as the Company’s historical claims experience, case reserve estimates on reported claims, large claims, actuarial projections and other relevant factors in determining loss provision rates and the aggregate recorded expected liability for claims. In establishing reserves, actuarial projections are compared with recorded reserves to evaluate the adequacy of such recorded claims reserves and any necessary adjustments are then recorded in current operations. As the most recent claims experience develops and new information becomes available, the loss reserve estimate related to prior periods will change to more accurately reflect updated and improved emerging data. The Company reflects any adjustments to reserves in the results of operations in the period in which new information (principally claims experience) becomes available. The Company’s reserves for claims are established using estimated amounts required to settle claims for which notice has been received (reported) and the amount estimated to be required to satisfy incurred claims of policyholders which have been incurred but not reported (“IBNR”). During the third quarter of 2013 certain actuarial inputs were changed to reflect recent trends. See Note 6 in the accompanying Consolidated Financial Statements for further information regarding this change in accounting estimate. Premiums written – The Company’s premium revenues from certain agency operations include accruals based on estimates. These accruals estimate unreported agency premiums related to transactions which have settled as of the balance sheet date. Accruals for premiums from certain agencies are necessary because of the lag between policy effective dates and the reporting of these transactions to the Company by the agents. The current lag time used in the Company’s estimates typically ranges between 0 and 180 days after the policy effective date, with the majority of agencies reporting within 60 to 90 days. The lag time is reviewed periodically to monitor accruals. To determine the estimated premiums, the Company uses historical experience, as well as other factors, to make certain assumptions about the average elapsed time between the policy effective date and the date the policies are reported. From time to time, the Company adjusts the inputs to the calculation of these estimates as agents report transactions and information on more current trends becomes available. The Company reflects any adjustments to the accruals in the results of operations in the period in which new information becomes available. Impairments – Securities are regularly evaluated and reviewed for differences between the cost and estimated fair value of each security for factors that may indicate that a decline in estimated fair value is other-than-temporary. When, in the opinion of management, a decline in the estimated fair value of an investment is considered to be other-than-temporary, such investment is written down to its estimated fair value. Some factors considered in evaluating whether or not a decline in estimated fair value is other-than-temporary include the duration and extent to which the estimated fair value has been less than cost; the probability that the Company will be unable to collect all amounts due under the contractual terms of the security; with respect to equity securities, whether the Company’s ability and intent to retain the investment for a period of time is sufficient to allow for a recovery in value; with respect to fixed maturity securities, whether the Company has the intent to sell or will more likely than not be required to sell a particular security before recovery in value; and the financial condition and prospects of the issuer (including credit ratings). These factors are reviewed quarterly and any material degradation in the prospect for recovery will be considered in the other-than-temporary impairment analysis. Such reviews are inherently uncertain and the value of the investment may not fully recover or may decline in future periods resulting in a realized loss. The estimated fair values of the majority of the Company’s investments are based on quoted market prices from independent pricing services. |
Investments in Securities and34
Investments in Securities and Fair Value (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Gross Unrealized Gains (Losses) and Amortized Cost for Securities | The aggregate estimated fair value, gross unrealized holding gains, gross unrealized holding losses, and amortized cost for securities by major security type at December 31 were as follows: December 31, 2015 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Fixed maturities, available-for-sale, at fair value: General obligations of U.S. states, territories and political subdivisions $ 31,883,439 $ 987,595 $ 11,734 $ 32,859,300 Special revenue issuer obligations of U.S. states, territories and political subdivisions 52,202,815 2,604,152 26,127 54,780,840 Corporate debt securities 17,004,985 539,832 58,473 17,486,344 Auction rate securities 924,587 15,313 — 939,900 Total $ 102,015,826 $ 4,146,892 $ 96,334 $ 106,066,384 Equity securities, available-for-sale, at fair value: Common stocks $ 23,855,873 $ 13,785,968 $ 128,377 $ 37,513,464 Total $ 23,855,873 $ 13,785,968 $ 128,377 $ 37,513,464 Short-term investments: Money market funds and certificates of deposit $ 6,865,406 $ — $ — $ 6,865,406 Total $ 6,865,406 $ — $ — $ 6,865,406 December 31, 2014 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Fixed maturities, available-for-sale, at fair value: General obligations of U.S. states, territories and political subdivisions $ 35,215,247 $ 1,527,794 $ 19,542 $ 36,723,499 Special revenue issuer obligations of U.S. states, territories and political subdivisions 46,707,033 2,405,725 55,502 49,057,256 Corporate debt securities 21,576,641 823,133 71,339 22,328,435 Auction rate securities 922,129 16,971 — 939,100 Total $ 104,421,050 $ 4,773,623 $ 146,383 $ 109,048,290 Equity securities, available-for sale, at fair value: Common stocks and nonredeemable preferred stocks $ 24,128,753 $ 15,225,459 $ 99,231 $ 39,254,981 Total $ 24,128,753 $ 15,225,459 $ 99,231 $ 39,254,981 Short-term investments: Money market funds and certificates of deposit $ 2,576,993 $ — $ — $ 2,576,993 Total $ 2,576,993 $ — $ — $ 2,576,993 |
Schedule Of Fixed Maturity Securities | The scheduled maturities of fixed maturity securities at December 31, 2015 were as follows: Available-for-Sale Amortized Cost Fair Value Due in one year or less $ 14,677,669 $ 14,877,469 Due after one year through five years 41,214,199 42,796,111 Due five years through ten years 42,879,329 44,682,558 Due after ten years 3,244,629 3,710,246 Total $ 102,015,826 $ 106,066,384 |
Schedule of Earnings on Investments | Earnings on investments for the years ended December 31 were as follows: 2015 2014 2013 Fixed maturities $ 3,439,296 $ 3,282,810 $ 2,997,901 Equity securities 1,086,365 973,419 890,917 Invested cash and other short-term investments 5,605 3,202 5,754 Miscellaneous interest 53 70 36 Investment income $ 4,531,319 $ 4,259,501 $ 3,894,608 |
Schedule of Gross Realized Gain (Loss) on Securities | Gross realized gains and losses on sales of investments for the years ended December 31 are summarized as follows: 2015 2014 2013 Gross realized gains: Corporate debt securities $ 5,417 $ 6,670 $ — Common stocks and nonredeemable preferred stocks 1,572,636 1,021,463 369,673 Total 1,578,053 1,028,133 369,673 Gross realized losses: General obligations of U.S. states, territories and political subdivisions (12,319 ) — — Special revenue issuer obligations of U.S. states, territories and political subdivisions (397 ) — — Common stocks and nonredeemable preferred stocks (846,500 ) (509,854 ) (180,169 ) Other than temporary impairment of securities (751,059 ) (14,542 ) — Total (1,610,275 ) (524,396 ) (180,169 ) Net realized (loss) gain $ (32,222 ) $ 503,737 $ 189,504 Net realized (loss) gain on other investments: Impairments of other assets and investments $ (233,069 ) $ (10,062 ) $ (34,070 ) Net gain on other assets and investments 149,128 45,288 48,946 Net loss on other assets and investments — (270,669 ) (8,580 ) Total $ (83,941 ) $ (235,443 ) $ 6,296 Net realized (loss) gain on investments $ (116,163 ) $ 268,294 $ 195,800 |
Schedule of Unrealized Loss on Investments | The following table presents the gross unrealized losses on investment securities and the estimated fair value of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous loss position at December 31, 2015 and 2014 : Less than 12 Months 12 Months or Longer Total December 31, 2015 Estimated Fair Value Unrealized Loss Estimated Fair Value Unrealized Loss Estimated Fair Value Unrealized Loss General obligations of U.S. states, territories and political subdivisions $ 1,758,345 $ (11,734 ) $ — $ — $ 1,758,345 $ (11,734 ) Special revenue issuer obligations of U.S. states, territories and political subdivisions 1,672,217 (5,139 ) 1,183,963 (20,989 ) 2,856,180 (26,128 ) Corporate debt securities 6,981,275 (58,472 ) — — 6,981,275 (58,472 ) Total fixed maturity securities $ 10,411,837 $ (75,345 ) $ 1,183,963 $ (20,989 ) $ 11,595,800 $ (96,334 ) Equity securities 5,533,667 (128,377 ) — — 5,533,667 (128,377 ) Total temporarily impaired securities $ 15,945,504 $ (203,722 ) $ 1,183,963 $ (20,989 ) $ 17,129,467 $ (224,711 ) December 31, 2014 General obligations of U.S. states, territories and political subdivisions $ 2,113,194 $ (19,542 ) $ — $ — $ 2,113,194 $ (19,542 ) Special revenue issuer obligations of U.S. states, territories and political subdivisions 3,946,977 (13,453 ) 1,182,390 (42,049 ) 5,129,367 (55,502 ) Corporate debt securities 6,924,430 (71,339 ) — — 6,924,430 (71,339 ) Total fixed maturity securities $ 12,984,601 $ (104,334 ) $ 1,182,390 $ (42,049 ) $ 14,166,991 $ (146,383 ) Equity securities 930,208 (71,669 ) 141,280 (27,562 ) 1,071,488 (99,231 ) Total temporarily impaired securities $ 13,914,809 $ (176,003 ) $ 1,323,670 $ (69,611 ) $ 15,238,479 $ (245,614 ) |
Schedule of Assumptions Used to Determine Fair Value | The following table summarizes key assumptions the service used to determine fair value as of December 31, 2015 and 2014 : 2015 2014 Cumulative probability of earning maximum rate until maturity —% —% Cumulative probability of principle returned prior to maturity 95.2% 95.2% Cumulative probability of default at some future point 4.8% 4.8% |
Schedule of Fair Value Assets Measured on Recurring Basis | The following table presents, by level, the financial assets carried at estimated fair value measured on a recurring basis as of December 31, 2015 and 2014 . The table does not include cash on hand and also does not include assets which are measured at historical cost or any basis other than fair value. Level 3 assets are comprised solely of ARS. As of December 31, 2015 Level 1 Level 2 Level 3 Total Short-term investments $ 6,865,406 $ — $ — $ 6,865,406 Equity securities: Common stocks 37,513,464 — — 37,513,464 Fixed maturities: Obligations of U.S. states, territories and political subdivisions* — 87,640,140 — 87,640,140 Corporate debt securities* and auction rate security — 17,486,344 939,900 18,426,244 Total $ 44,378,870 $ 105,126,484 $ 939,900 $ 150,445,254 As of December 31, 2014 Level 1 Level 2 Level 3 Total Short-term investments $ 2,576,993 $ — $ — $ 2,576,993 Equity securities: Common stocks and nonredeemable preferred stock 39,254,981 — — 39,254,981 Fixed maturities: Obligations of U.S. states, territories and political subdivisions* — 85,780,755 — 85,780,755 Corporate debt securities* and auction rate security — 22,328,435 939,100 23,267,535 Total $ 41,831,974 $ 108,109,190 $ 939,100 $ 150,880,264 *Denotes fair market value obtained from pricing services. |
Schedule of Carrying Value and Fair Value of Financial Assets | The carrying amounts and fair values of these financial instruments (please note investments are disclosed in a previous table) as of December 31, 2015 and 2014 are presented in the following table: As of December 31, 2015 Financial Assets Carrying Value Estimated Fair Value Level 1 Level 2 Level 3 Cash and cash equivalents $ 21,790,068 $ 21,790,068 $ 21,790,068 $ — $ — Cost-basis investments 3,588,314 3,684,020 — — 3,684,020 Accrued dividends and interest 1,004,126 1,004,126 1,004,126 — — Total $ 26,382,508 $ 26,478,214 $ 22,794,194 $ — $ 3,684,020 As of December 31, 2014 Financial Assets Carrying Value Estimated Fair Value Level 1 Level 2 Level 3 Cash and cash equivalents $ 15,826,515 $ 15,826,515 $ 15,826,515 $ — $ — Cost-basis investments 2,516,608 2,675,817 — — 2,675,817 Accrued dividends and interest 1,063,837 1,063,837 1,063,837 — — Total $ 19,406,960 $ 19,566,169 $ 16,890,352 $ — $ 2,675,817 |
Schedule of Fair Value Assets Measured at Unobservable Input Reconciliation | The following table presents a reconciliation of the Company’s assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3), which are all ARS securities, for the twelve months ended December 31, 2015 and 2014 : Changes in fair value during the year ended December 31: 2015 2014 Beginning balance at January 1 $ 939,100 $ 935,700 Redemptions and sales — — Realized gain – included in net realized (loss) gain on investments — — Realized loss – included in net realized (loss) gain on investments — — Unrealized gain – included in other comprehensive income 800 3,400 Ending balance at December 31 $ 939,900 $ 939,100 |
Schedule of Estimated Fair Value Hierarchy of Investments and Related Impairments Recognized | The following table summarizes the corresponding estimated fair value hierarchy of such investments at December 31, 2015 and 2014 and the related impairments recognized: December 31, 2015 Valuation Method Impaired Level 1 Level 2 Level 3 Total at Estimated Fair Value Impairment Losses Cost-basis investments Fair Value Yes $ — $ — $ 163,350 $ 163,350 $ (233,069 ) Total cost-basis investments and other assets $ — $ — $ 163,350 $ 163,350 $ (233,069 ) December 31, 2014 Valuation Method Impaired Level 1 Level 2 Level 3 Total at Estimated Fair Value Impairment Losses Cost-basis investments Fair Value Yes $ — $ — $ 22,682 $ 22,682 $ (10,062 ) Total cost-basis investments and other assets $ — $ — $ 22,682 $ 22,682 $ (10,062 ) |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | Property and equipment and estimated useful lives at December 31 are summarized as follows: 2015 2014 Land $ 1,122,582 $ 1,107,582 Office buildings and improvements (25 years) 3,495,338 3,416,096 Furniture, fixtures and equipment (3 to 10 years) 8,948,535 7,159,250 Automobiles (3 years) 968,210 847,905 Total 14,534,665 12,530,833 Less accumulated depreciation (7,385,714 ) (7,070,028 ) Property and equipment, net $ 7,148,951 $ 5,460,805 Included within furniture, fixtures and equipment is software developed by the Company for internal use. Capitalized costs include both direct and indirect costs, such as payroll costs of employees associated with developing software, incurred during the software development stage. |
Reserves for Claims (Tables)
Reserves for Claims (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Liability for Future Policy Benefits and Unpaid Claims and Claims Adjustment Expense [Abstract] | |
Summary Of Transactions In Reserves For Claims | Changes in the reserves for claims for the years ended December 31 are summarized as follows based on the year in which the policies were written: 2015 2014 2013 Balance, beginning of period $ 36,677,000 $ 35,360,000 $ 39,078,000 Provision (benefit) related to: Current year 7,295,013 6,860,335 7,239,628 Prior year (2,816,519 ) (1,630,619 ) (7,811,224 ) Total provision (benefit) charged to operations 4,478,494 5,229,716 (571,596 ) Claims paid, net of recoveries, related to: Current year (97,116 ) (102,947 ) (110,240 ) Prior year (3,270,378 ) (3,809,769 ) (3,036,164 ) Total claims paid, net of recoveries (3,367,494 ) (3,912,716 ) (3,146,404 ) Balance, end of year $ 37,788,000 $ 36,677,000 $ 35,360,000 |
Summary Of The Company's Loss Reserves | A summary of the Company’s loss reserves, broken down into its components of known title claims and IBNR, follows: 2015 % 2014 % Known title claims $ 5,066,469 13.4 $ 5,364,645 14.6 IBNR 32,721,531 86.6 31,312,355 85.4 Total loss reserves $ 37,788,000 100.0 $ 36,677,000 100.0 |
Earnings Per Common Share and37
Earnings Per Common Share and Share Awards (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Computation Of Basic And Diluted Earnings Per Share | The following table sets forth the computation of basic and diluted earnings per share for the years ended December 31: For the Years Ended December 31, 2015 2014 2013 Net income attributable to the Company $ 12,533,905 $ 9,648,975 $ 14,708,210 Weighted average common shares outstanding – Basic 1,984,360 2,031,760 2,056,169 Incremental shares outstanding assuming the exercise of dilutive stock options and SARs (share-settled) 5,439 5,774 20,459 Weighted average common shares outstanding – Diluted 1,989,799 2,037,534 2,076,628 Basic earnings per common share $ 6.32 $ 4.75 $ 7.15 Diluted earnings per common share $ 6.30 $ 4.74 $ 7.08 |
Summary Of Share-Based Award Transactions | A summary of share-based award transactions for all share-based award plans follows: Number Of Shares Weighted Average Exercise Price Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding as of January 1, 2013 98,150 $ 30.74 3.17 $ 2,871,710 SARs granted 3,000 71.59 SARs exercised (79,500 ) 28.77 Options exercised (2,650 ) 28.63 Outstanding as of December 31, 2013 19,000 $ 45.74 3.43 $ 669,610 SARs granted 4,500 68.70 SARs exercised (1,500 ) 49.04 Options exercised (1,000 ) 27.21 Outstanding as of December 31, 2014 21,000 $ 51.30 3.64 $ 453,510 SARs granted 4,500 73.00 SARs exercised (2,000 ) 47.88 Options exercised (1,500 ) 36.79 Outstanding as of December 31, 2015 22,000 $ 57.04 3.93 $ 945,055 Exercisable as of December 31, 2015 20,875 $ 56.18 3.80 $ 914,680 Unvested as of December 31, 2015 1,125 $ 73.00 6.39 $ 30,375 |
Summary of Information of Fixed Stock Options | The following tables summarize information about SARs outstanding at December 31, 2015 : SARs Outstanding at Year-End SARs Exercisable at Year-End Range of Exercise Prices Number Outstanding Weighted Average Remaining Contractual Life Weighted Average Exercise Price Number Exercisable Weighted Average Exercise Price $ 32.00 — $ 32.00 2,000 0.39 $ 32.00 2,000 $ 32.00 33.31 — 33.31 2,500 1.38 33.31 2,500 33.31 36.80 — 73.00 17,500 4.70 63.30 16,375 62.63 $ 32.00 — $ 73.00 22,000 3.93 $ 57.05 20,875 $ 56.18 |
Share-Based Valuation Assumptions | The weighted average fair values for the SARs issued during 2015 , 2014 and 2013 were $31.16 , $28.98 and $27.55 , respectively, and were estimated using the weighted average assumptions shown in the table below. 2015 2014 2013 Expected Life in Years 7.0 6.9 5.0 Volatility 40.7% 39.9% 44.6% Interest Rate 2.0% 2.1% 1.3% Yield Rate 0.4% 0.4% 0.5% |
Schedule of Weighted Average Grant Date Fair Value of Stock Awards Plans | The estimated weighted average grant-date fair value of SARs granted for the years ended December 31 was as follows: For the Years Ended December 31, 2015 2014 2013 Exercise price equal to market price on date of grant: Weighted average market price $ 73.00 $ 68.70 $ 71.59 Weighted average grant-date fair value $ 31.16 $ 28.98 $ 27.55 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense | The components of income tax expense for the years ended December 31 are summarized as follows: For the Years Ended December 31, 2015 2014 2013 Current: Federal $ 4,179,000 $ 3,121,000 $ 4,873,000 State 34,000 84,000 69,000 Total current 4,213,000 3,205,000 4,942,000 Deferred: Federal 976,624 620,156 1,805,215 State 38,376 (9,156 ) (1,215 ) Total deferred 1,015,000 611,000 1,804,000 Total $ 5,228,000 $ 3,816,000 $ 6,746,000 |
Schedule of Deferred Tax Assets and Liabilities | At December 31, the approximate tax effect of each component of deferred income tax assets and liabilities is summarized as follows: For the Years Ended December 31, 2015 2014 Deferred income tax assets: Accrued benefits and retirement services $ 3,262,719 $ 3,061,144 Allowance for doubtful accounts 1,199,777 1,033,624 Other-than-temporary impairment of assets 428,614 323,089 Excess of book over tax depreciation — 90,409 Postretirement benefit obligation 59,108 40,183 Reinsurance and commission payable 13,752 15,668 Net operating loss carryforward 22,000 25,000 Other 426,463 305,119 Total 5,412,433 4,894,236 Deferred income tax liabilities: Net unrealized gain on investments 6,073,431 6,781,994 Recorded reserves for claims, net of statutory premium reserves 3,322,336 2,871,114 Excess of tax over book depreciation 986,422 — Other 733,250 656,621 Total 11,115,439 10,309,729 Net deferred income tax liabilities $ (5,703,006 ) $ (5,415,493 ) |
Schedule of Reconciliation of Income Tax | A reconciliation of income tax as computed for the years ended December 31 at the U.S. federal statutory income tax rate of 34.4% for 2015, 34.3% for 2014 and 34.1% for 2013, respectively, to income tax expense follows: For the Years Ended December 31, 2015 2014 2013 Anticipated income tax expense $ 6,115,306 $ 4,626,555 $ 7,346,074 Increase (decrease) related to: State income taxes, net of federal income tax benefit 22,304 55,188 45,471 Tax-exempt interest income (net of amortization) (981,712 ) (876,365 ) (772,545 ) Other, net 72,102 10,622 127,000 Provision for income taxes $ 5,228,000 $ 3,816,000 $ 6,746,000 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Leases [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases | The future minimum lease payments under operating leases that have initial or remaining noncancelable lease terms in excess of one year as of December 31, 2015 , are summarized as follows: Year Ended: 2016 $ 658,060 2017 448,792 2018 236,062 2019 107,124 2020 95,570 Thereafter 81,397 Total $ 1,627,005 |
Retirement Agreements and Oth40
Retirement Agreements and Other Postretirement Benefit Plan (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Components Of Net Periodic Benefits Cost | Cost of the Company’s postretirement benefits included the following components: 2015 2014 2013 Net periodic benefit cost Service cost – benefits earned during the year $ 16,748 $ 14,667 $ 15,782 Interest cost on the projected benefit obligation 30,772 30,472 28,412 Amortization (accretion) of unrecognized prior service cost 4,390 2,217 (1,518 ) Amortization of unrecognized loss 3,514 — 6,293 Net periodic benefits cost at end of year $ 55,424 $ 47,356 $ 48,969 |
Schedule of Net Funded Status On The Balance Sheet | The effects of the funded status on the Company’s Consolidated Balance Sheets at December 31, 2015 and 2014 are presented in the following table: 2015 2014 Funded status Actuarial present value of future benefits: Fully eligible active employee $ (483,985 ) $ (409,492 ) Non-eligible active employees (398,638 ) (362,045 ) Plan assets — — Funded status of accumulated postretirement benefit obligation, recognized in other liabilities $ (882,623 ) $ (771,537 ) |
Development Of The Accumulated Postretirement Benefit Obligation | Development of the accumulated postretirement benefit obligation for the years ended December 31, 2015 and 2014 includes the following: 2015 2014 Accrued postretirement benefit obligation at beginning of year $ (771,537 ) $ (679,277 ) Service cost – benefits earned during the year (16,748 ) (14,667 ) Interest cost on projected benefit obligation (30,772 ) (30,472 ) Actuarial loss (63,566 ) (47,121 ) Accrued postretirement benefit obligation at end of year $ (882,623 ) $ (771,537 ) |
Changes in Amounts Related to Accumulated Other Comprehensive Income, Pre-Tax | The changes in amounts related to accumulated other comprehensive income, pre-tax, are as follows: 2015 2014 Balance at beginning of year $ 118,150 $ 73,246 Components of accumulated other comprehensive income: Unrecognized prior service cost (4,390 ) (2,217 ) Amortization of loss, net (3,514 ) — Actuarial loss 63,566 47,121 Balance at end of year $ 173,812 $ 118,150 |
Amounts in Accumulated Other Comprehensive Income, Pre-Tax, to be Recognized as Components of Net Periodic Benefit Costs | The amounts currently in accumulated other comprehensive income, pre-tax, that will be reclassified to the Consolidated Statements of Income and recognized as components of net periodic benefit costs in 2015 are: Projected 2016 Amortization of unrecognized prior service cost $ — Amortization of unrecognized loss 8,941 Net periodic benefit cost at end of year $ 8,941 |
Effect of Net Periodic Postretirement Benefit Cost and Accumulated Postretirement Benefit Obligation | The following illustrates the effects on the net periodic postretirement benefit cost (“NPPBC”) and the accumulated postretirement benefit obligation (“APBO”) of a one percentage point increase and one percentage point decrease in the assumed health care cost trend rate as of December 31, 2015 : One Percentage Point Increase One Percentage Point Decrease Net periodic postretirement benefit cost Effect on the service cost component $ 2,600 $ (1,989 ) Effect on interest cost 7,339 (5,721 ) Total effect on the net periodic postretirement benefit cost $ 9,939 $ (7,710 ) Accumulated postretirement benefit obligation (including active employees who are not fully eligible) Effect on those currently receiving benefits (retirees and spouses) $ — $ — Effect on active fully eligible 81,657 (65,192 ) Effect on actives not yet eligible 101,813 (77,845 ) Total effect on the accumulated postretirement benefit obligation $ 183,470 $ (143,037 ) |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Selected Financial Information About The Company's Operations By Segment | Provided below is selected financial information about the Company’s operations by segment for the periods ended December 31, 2015 , 2014 and 2013 : 2015 Title Insurance All Other Intersegment Eliminations Total Insurance and other services revenues $ 118,144,981 $ 6,479,484 $ (1,839,549 ) $ 122,784,916 Investment income 4,073,857 574,132 (116,670 ) 4,531,319 Net realized loss on investments (13,603 ) (102,560 ) — (116,163 ) Total revenues $ 122,205,235 $ 6,951,056 $ (1,956,219 ) $ 127,200,072 Operating expenses 104,594,829 6,598,055 (1,769,865 ) 109,423,019 Income before income taxes $ 17,610,406 $ 353,001 $ (186,354 ) $ 17,777,053 Total assets $ 163,582,898 $ 47,939,131 $ — $ 211,522,029 2014 Title Insurance All Other Intersegment Eliminations Total Insurance and other services revenues $ 114,279,532 $ 5,904,059 $ (1,592,100 ) $ 118,591,491 Investment income 3,835,209 517,628 (93,336 ) 4,259,501 Net realized gain on investments 213,709 54,585 — 268,294 Total revenues $ 118,328,450 $ 6,476,272 $ (1,685,436 ) $ 123,119,286 Operating expenses 105,290,627 5,862,577 (1,522,416 ) 109,630,788 Income before income taxes $ 13,037,823 $ 613,695 $ (163,020 ) $ 13,488,498 Total assets $ 153,072,950 $ 44,966,260 $ — $ 198,039,210 2013 Title Insurance All Other Intersegment Eliminations Total Insurance and other services revenues $ 118,153,904 $ 5,507,069 $ (1,499,884 ) $ 122,161,089 Investment income 3,599,106 388,838 (93,336 ) 3,894,608 Net realized gain (loss) on investments 225,661 (29,861 ) — 195,800 Total revenues $ 121,978,671 $ 5,866,046 $ (1,593,220 ) $ 126,251,497 Operating expenses 99,899,804 6,239,155 (1,430,200 ) 104,708,759 Income (loss) before income taxes $ 22,078,867 $ (373,109 ) $ (163,020 ) $ 21,542,738 Total assets $ 146,110,146 $ 42,195,670 $ — $ 188,305,816 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |
Summary Of Approximate Values By Year Found Within Consolidated Balance Sheets | The following table sets forth the approximate values by year found within each financial statement classification: Financial Statement Classification, 2015 2014 Consolidated Balance Sheets Other investments $ 6,519,000 $ 6,014,000 Premiums and fees receivable $ 719,000 $ 666,000 |
Summary Of Approximate Values By Year Found Within Consolidated Statements Of Income | Financial Statement Classification, Consolidated Statements of Income 2015 2014 2013 Net premiums written $ 14,015,000 $ 11,783,000 $ 12,442,000 Other income $ 2,618,000 $ 2,043,000 $ 1,839,000 Commissions to agents $ 9,700,000 $ 8,049,000 $ 8,465,000 |
Acquisition (Tables)
Acquisition (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Business Combinations [Abstract] | |
Schedule Of Aggregate Amortization Expense for Intangible Assets | The amortization of the non-compete contract will start at a future date when the related employment agreement is terminated. There are currently no plans to terminate the employment agreement, and the Company does not believe it is probable that termination of the employment agreement will occur within the calendar year. Assuming that the amortization of the non-complete agreement begins on the first day of 2017, estimated aggregate amortization expense for each of the five succeeding fiscal years are as follows: Year Ended: 2016 $ 69,685 2017 134,253 2018 134,253 2019 134,253 2020 134,253 Thereafter 613,888 Total $ 1,220,585 |
Reconciliation Of Total Redeemable Equity | The following table provides a reconciliation of total redeemable equity of United for the periods ended December 31, 2015 , 2014 and 2013 : Changes in carrying value during the period ended: 2015 2014 2013 Beginning balance at January 1 $ — $ 545,489 $ 493,861 Net income attributable to redeemable noncontrolling interest — 23,523 88,528 Distributions to noncontrolling interest — (168,057 ) (36,900 ) Redeemable noncontrolling interest resulting from subsidiary purchase — (515,275 ) — Adjustment to retained earnings for purchase of noncontrolling interest — 114,320 — Balance, net $ — $ — $ 545,489 |
Accumulated Other Comprehensi44
Accumulated Other Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule Of Changes In Balances Of Each Component Of Accumulated Other Comprehensive Income, Net Of Tax | The following tables provide changes in the balances of each component of accumulated other comprehensive income, net of tax, for the periods ended December 31, 2015 , 2014 and 2013 : 2015 Unrealized Gains and Losses On Available-for-Sale Securities Postretirement Benefits Plans Total Beginning balance at January 1 $ 12,934,497 $ (77,988 ) $ 12,856,509 Other comprehensive loss before reclassifications (1,355,316 ) (41,954 ) (1,397,270 ) Amounts reclassified from accumulated other comprehensive income (loss) 18,560 5,216 23,776 Net current-period other comprehensive loss (1,336,756 ) (36,738 ) (1,373,494 ) Ending balance $ 11,597,741 $ (114,726 ) $ 11,483,015 2014 Unrealized Gains and Losses On Available-for-Sale Securities Postretirement Benefits Plans Total Beginning balance at January 1 $ 11,395,757 $ (48,353 ) $ 11,347,404 Other comprehensive income (loss) before reclassifications 1,874,111 (31,100 ) 1,843,011 Amounts reclassified from accumulated other comprehensive income (loss) (335,371 ) 1,465 (333,906 ) Net current-period other comprehensive income (loss) 1,538,740 (29,635 ) 1,509,105 Ending balance $ 12,934,497 $ (77,988 ) $ 12,856,509 2013 Unrealized Gains and Losses On Available-for-Sale Securities Postretirement Benefits Plans Total Beginning balance at January 1 $ 8,920,884 $ (102,454 ) $ 8,818,430 Other comprehensive income before reclassifications 2,605,184 50,961 2,656,145 Amounts reclassified from accumulated other comprehensive income (loss) (130,311 ) 3,140 (127,171 ) Net current-period other comprehensive income 2,474,873 54,101 2,528,974 Ending balance $ 11,395,757 $ (48,353 ) $ 11,347,404 |
Schedule Of Reclassification Out Of Accumulated Other Comprehensive Income | The following tables provide significant amounts reclassified out of each component of accumulated other comprehensive income for the periods ended December 31, 2015 , 2014 and 2013 : 2015 Details about Accumulated Other Comprehensive Income Components Amount Reclassified from Accumulated Other Comprehensive Income Affected Line Item in the Consolidated Statements of Income Unrealized gains and losses on available-for-sale securities: Net realized gain on investment $ 718,837 Other-than-temporary impairments (751,059 ) Total $ (32,222 ) Net realized (loss) gain on investment Tax 13,662 Provision for Income Taxes Net of Tax $ (18,560 ) Amortization related to postretirement benefit plans: Prior year service cost $ (4,390 ) Unrecognized loss (3,514 ) Total $ (7,904 ) (a) Tax 2,688 Provision for Income Taxes Net of Tax $ (5,216 ) Reclassifications for the period $ (23,776 ) 2014 Details about Accumulated Other Amount Reclassified from Affected Line Item in the Consolidated Unrealized gains and losses on available-for-sale securities: Net realized gain on investment $ 518,279 Other-than-temporary impairments (14,542 ) Total $ 503,737 Net realized (loss) gain on investment Tax (168,366 ) Provision for Income Taxes Net of Tax $ 335,371 Amortization related to postretirement benefit plans: Prior year service cost $ (2,217 ) Unrecognized loss — Total $ (2,217 ) (a) Tax 752 Provision for Income Taxes Net of Tax $ (1,465 ) Reclassifications for the period $ 333,906 2013 Details about Accumulated Other Amount Reclassified from Affected Line Item in the Consolidated Unrealized gains and losses on available-for-sale securities: Net realized gain on investment $ 229,869 Other-than-temporary impairments (34,070 ) Total $ 195,799 Net realized (loss) gain on investment Tax (65,488 ) Provision for Income Taxes Net of Tax $ 130,311 Accretion (amortization) related to postretirement benefit plans: Prior year service cost $ 1,518 Unrecognized loss (6,293 ) Total $ (4,775 ) (a) Tax 1,635 Provision for Income Taxes Net of Tax $ (3,140 ) Reclassifications for the period $ 127,171 (a) These accumulated other comprehensive income components are not reclassified to net income in their entirety in the same reporting period. The amounts are presented within salaries, employee benefits and payroll taxes on the Consolidated Statements of Income as amortized. Amortization related to postretirement benefit plans is included in the computation of net periodic pension costs, as discussed in Note 10. |
Basis Of Presentation and Sig45
Basis Of Presentation and Significant Accounting Policies (Details) | 12 Months Ended | ||
Dec. 31, 2015USD ($)StateSubsidiary | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Organization, Consolidation and Presentation of Financial Statements [Line Items] | |||
Number of title insurance subsidiaries | Subsidiary | 2 | ||
Number of States in which Entity operates | State | 22 | ||
Cost method investment, aggregate cost | $ 3,572,914 | $ 2,423,408 | |
Premium collection period before reserved | 7 months | ||
Unrealized holding gains on available-for-sale securities | $ 11,597,741 | 12,934,497 | $ 11,395,757 |
Unrecognized prior service cost and unrecognized actuarial losses associated with postretirement benefit liabilities | $ 114,726 | $ 77,988 | $ 48,353 |
Potential claim payment period after policy issuance | 20 years | ||
Minimum | |||
Organization, Consolidation and Presentation of Financial Statements [Line Items] | |||
Property and equipment useful life | 3 years | ||
Lag time between Policy effective dates and transaction reporting dates | 0 days | ||
Transaction reporting period | 60 days | ||
Maximum | |||
Organization, Consolidation and Presentation of Financial Statements [Line Items] | |||
Property and equipment useful life | 25 years | ||
Lag time between Policy effective dates and transaction reporting dates | 180 days | ||
Transaction reporting period | 90 days |
Statutory Restrictions on Con46
Statutory Restrictions on Consolidated Stockholders' Equity and Investments (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statutory Restrictions on Consolidated Stockholders' Equity and Investments [Abstract] | |||
Combined capital and surplus on statutory basis | $ 133,363,375 | $ 127,314,429 | |
Net income statutory basis | 13,621,174 | 9,737,634 | $ 11,858,699 |
Statutory accounting statutory premium and supplemental reserves | 50,508,000 | 48,423,000 | |
Amount available for dividend distribution with approval from regulatory agencies | 89,489,000 | 90,384,000 | |
Statutory Accounting Practices, Statutory Amount Available for Dividend Payments | 14,352,000 | ||
Investments on deposit with state insurance departments | $ 7,159,000 | $ 7,060,000 |
Investments in Securities and47
Investments in Securities and Fair Value (Details) | 12 Months Ended | ||
Dec. 31, 2015USD ($)security | Dec. 31, 2014USD ($)security | Dec. 31, 2013USD ($) | |
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | |||
Available-for-sale, fixed maturity | $ 106,066,384 | $ 109,048,290 | |
Available for sale securities, unrealized losses | 224,711 | 245,614 | |
Available for sale securities, equity securities | $ 37,513,464 | $ 39,254,981 | |
Number of securities with unrealized losses | security | 30 | 25 | |
Other than Temporary Impairment Losses, Investments, Portion Recognized in Earnings, Net | $ 751,059 | $ 14,542 | $ 0 |
Fixed maturities | |||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | |||
Available-for-sale, fixed maturity | 11,595,800 | 14,166,991 | |
Available for sale securities, unrealized losses | 96,334 | 146,383 | |
Equity securities | |||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | |||
Available for sale securities, unrealized losses | 128,377 | 99,231 | |
Available for sale securities, equity securities | $ 5,533,667 | $ 1,071,488 | |
Auction rate securities | |||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | |||
Difference in low to high range values as percent of carrying value | 1.00% | 4.00% | |
Level 3 | Auction rate securities | |||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | |||
Securities par value | $ 1,000,000 | $ 1,000,000 | |
Percent of securities par value guaranteed by the U.S. Department of Education | 97.00% | 97.00% |
Investments in Securities and48
Investments in Securities and Fair Value Schedule of Gross Unrealized Gains and Losses and Amortized Cost for Securities (Details) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) |
Available-for-sale Securities [Abstract] | ||
Amortized Cost | $ 102,015,826 | $ 104,421,050 |
Gross Unrealized Gains | 4,146,892 | 4,773,623 |
Gross Unrealized Losses | 96,334 | 146,383 |
Estimated Fair Value | 106,066,384 | 109,048,290 |
Amortized Cost | 23,855,873 | 24,128,753 |
Gross Unrealized Gains | 13,785,968 | 15,225,459 |
Gross Unrealized Losses | 128,377 | 99,231 |
Estimated Fair Value | 37,513,464 | 39,254,981 |
Short Term Investments Amortized Cost Basis | 6,865,406 | 2,576,993 |
Short Term Investments Gross Unrealized Gains | 0 | 0 |
Short Term Investments Gross Unrealized Losses | 0 | 0 |
Short Term Investments Estimated Fair Value | 6,865,406 | 2,576,993 |
General obligations of U.S. states, territories and political subdivisions | ||
Available-for-sale Securities [Abstract] | ||
Amortized Cost | 31,883,439 | 35,215,247 |
Gross Unrealized Gains | 987,595 | 1,527,794 |
Gross Unrealized Losses | 11,734 | 19,542 |
Estimated Fair Value | $ 32,859,300 | 36,723,499 |
Special revenue issuer obligations of U.S. states, territories and political subdivisions | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Number of Special Revenue Bonds | 50 | |
Available-for-sale Securities [Abstract] | ||
Amortized Cost | $ 52,202,815 | 46,707,033 |
Gross Unrealized Gains | 2,604,152 | 2,405,725 |
Gross Unrealized Losses | 26,127 | 55,502 |
Estimated Fair Value | 54,780,840 | 49,057,256 |
Corporate debt securities | ||
Available-for-sale Securities [Abstract] | ||
Amortized Cost | 17,004,985 | 21,576,641 |
Gross Unrealized Gains | 539,832 | 823,133 |
Gross Unrealized Losses | 58,473 | 71,339 |
Estimated Fair Value | 17,486,344 | 22,328,435 |
Auction rate securities | ||
Available-for-sale Securities [Abstract] | ||
Amortized Cost | 924,587 | 922,129 |
Gross Unrealized Gains | 15,313 | 16,971 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | 939,900 | 939,100 |
Common stocks | ||
Available-for-sale Securities [Abstract] | ||
Amortized Cost | 23,855,873 | 24,128,753 |
Gross Unrealized Gains | 13,785,968 | 15,225,459 |
Gross Unrealized Losses | 128,377 | 99,231 |
Estimated Fair Value | 37,513,464 | 39,254,981 |
Money market funds and certificates of deposit | ||
Available-for-sale Securities [Abstract] | ||
Short Term Investments Amortized Cost Basis | 6,865,406 | 2,576,993 |
Short Term Investments Gross Unrealized Gains | 0 | 0 |
Short Term Investments Gross Unrealized Losses | 0 | 0 |
Short Term Investments Estimated Fair Value | $ 6,865,406 | $ 2,576,993 |
Investments in Securities and49
Investments in Securities and Fair Value Schedule of Fixed Maturity Securities (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis, Fiscal Year Maturity [Abstract] | ||
Due in one year or less | $ 14,677,669 | |
Due after one year through five years | 41,214,199 | |
Due five years through ten years | 42,879,329 | |
Due after ten years | 3,244,629 | |
Total | 102,015,826 | $ 104,421,050 |
Available-for-sale Securities, Debt Maturities, Fair Value, Fiscal Year Maturity [Abstract] | ||
Due after one year through five years | 14,877,469 | |
Due after one year through five years | 42,796,111 | |
Due five years through ten years | 44,682,558 | |
Due after ten years | 3,710,246 | |
Total | $ 106,066,384 |
Investments in Securities and50
Investments in Securities and Fair Value Schedule of Earnings on Investments (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Investment income | $ 4,531,319 | $ 4,259,501 | $ 3,894,608 |
Fixed maturities | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Investment income | 3,439,296 | 3,282,810 | 2,997,901 |
Equity securities | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Investment income | 1,086,365 | 973,419 | 890,917 |
Invested cash and other short-term investments | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Investment income | 5,605 | 3,202 | 5,754 |
Miscellaneous interest | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Investment income | $ 53 | $ 70 | $ 36 |
Investments in Securities and51
Investments in Securities and Fair Value Schedule of Gross Realized Gains (Losses) on Securities (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Schedule of Available-for-sale Securities [Line Items] | |||
Gross realized gains | $ 1,578,053 | $ 1,028,133 | $ 369,673 |
Gross realized losses | (1,610,275) | (524,396) | (180,169) |
Net realized (loss) gain | (32,222) | 503,737 | 189,504 |
Impairments of other assets and investments | (233,069) | (10,062) | (34,070) |
Net gain on other assets and investments | 149,128 | 45,288 | 48,946 |
Net loss on other assets and investments | 0 | (270,669) | (8,580) |
Realized Investment Gains (Losses) | (83,941) | (235,443) | 6,296 |
Gain (Loss) on Investments | (116,163) | 268,294 | 195,800 |
Corporate debt securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Gross realized gains | 5,417 | 6,670 | 0 |
Common stocks | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Gross realized gains | 1,572,636 | 1,021,463 | 369,673 |
Gross realized losses | (846,500) | (509,854) | (180,169) |
General obligations of U.S. states, territories and political subdivisions | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Gross realized losses | (12,319) | 0 | 0 |
Issuer obligations U.S. states and political subdivisions debt securities special revenues | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Gross realized losses | (397) | 0 | 0 |
Other Than Temporary Impairment Of Securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Gross realized losses | $ (751,059) | $ (14,542) | $ 0 |
Investments in Securities and52
Investments in Securities and Fair Value Schedule of Unrealized Losses on Investments (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Less than Twelve Months, Fair Value | $ 15,945,504 | $ 13,914,809 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (203,722) | (176,003) |
Available-for-sale Securities, Twelve Months or Longer, Fair Value | 1,183,963 | 1,323,670 |
Available-for-sale Securities, 12 Months or Longer, Aggregate Losses | (20,989) | (69,611) |
Available-for-sale Securities, Total Fair Value | 17,129,467 | 15,238,479 |
Available-for-sale Securities, Total Aggregate Losses | (224,711) | (245,614) |
General obligations of U.S. states, territories and political subdivisions | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Less than Twelve Months, Fair Value | 1,758,345 | 2,113,194 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (11,734) | (19,542) |
Available-for-sale Securities, Twelve Months or Longer, Fair Value | 0 | 0 |
Available-for-sale Securities, 12 Months or Longer, Aggregate Losses | 0 | 0 |
Available-for-sale Securities, Total Fair Value | 1,758,345 | 2,113,194 |
Available-for-sale Securities, Total Aggregate Losses | (11,734) | (19,542) |
Special revenue issuer obligations of U.S. states, territories and political subdivisions | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Less than Twelve Months, Fair Value | 1,672,217 | 3,946,977 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (5,139) | (13,453) |
Available-for-sale Securities, Twelve Months or Longer, Fair Value | 1,183,963 | 1,182,390 |
Available-for-sale Securities, 12 Months or Longer, Aggregate Losses | (20,989) | (42,049) |
Available-for-sale Securities, Total Fair Value | 2,856,180 | 5,129,367 |
Available-for-sale Securities, Total Aggregate Losses | (26,128) | (55,502) |
Corporate debt securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Less than Twelve Months, Fair Value | 6,981,275 | 6,924,430 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (58,472) | (71,339) |
Available-for-sale Securities, Twelve Months or Longer, Fair Value | 0 | 0 |
Available-for-sale Securities, 12 Months or Longer, Aggregate Losses | 0 | 0 |
Available-for-sale Securities, Total Fair Value | 6,981,275 | 6,924,430 |
Available-for-sale Securities, Total Aggregate Losses | (58,472) | (71,339) |
Total fixed maturity securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Less than Twelve Months, Fair Value | 10,411,837 | 12,984,601 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (75,345) | (104,334) |
Available-for-sale Securities, Twelve Months or Longer, Fair Value | 1,183,963 | 1,182,390 |
Available-for-sale Securities, 12 Months or Longer, Aggregate Losses | (20,989) | (42,049) |
Available-for-sale Securities, Total Fair Value | 11,595,800 | 14,166,991 |
Available-for-sale Securities, Total Aggregate Losses | (96,334) | (146,383) |
Equity securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Less than Twelve Months, Fair Value | 5,533,667 | 930,208 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (128,377) | (71,669) |
Available-for-sale Securities, Twelve Months or Longer, Fair Value | 0 | 141,280 |
Available-for-sale Securities, 12 Months or Longer, Aggregate Losses | 0 | (27,562) |
Available-for-sale Securities, Total Fair Value | 5,533,667 | 1,071,488 |
Available-for-sale Securities, Total Aggregate Losses | $ (128,377) | $ (99,231) |
Investments in Securities and53
Investments in Securities and Fair Value Schedule of Assumptions Used to Determine Fair Value (Details) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Investments, Debt and Equity Securities [Abstract] | ||
Cumulative probability of earning maximum rate until maturity | 0.00% | 0.00% |
Cumulative probability of principle returned prior to maturity | 95.20% | 95.20% |
Cumulative probability of default at some future point | 4.80% | 4.80% |
Investments in Securities and54
Investments in Securities and Fair Value Schedule of Fair Value Assets Measured on Recurring Basis (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Short-term investments | $ 6,865,406 | $ 2,576,993 | |
Available for sale securities, equity securities | 37,513,464 | 39,254,981 | |
Available-for-sale, fixed maturity | 106,066,384 | 109,048,290 | |
Total | 150,445,254 | 150,880,264 | |
Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Short-term investments | 6,865,406 | 2,576,993 | |
Total | 44,378,870 | 41,831,974 | |
Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Short-term investments | 0 | 0 | |
Total | 105,126,484 | 108,109,190 | |
Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Short-term investments | 0 | 0 | |
Total | 939,900 | 939,100 | |
Common stocks | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available for sale securities, equity securities | 37,513,464 | 39,254,981 | |
Common stocks | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available for sale securities, equity securities | 37,513,464 | 39,254,981 | |
Common stocks | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available for sale securities, equity securities | 0 | 0 | |
Common stocks | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available for sale securities, equity securities | 0 | 0 | |
Obligations of U.S. states, territories and political subdivisions | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale, fixed maturity | [1] | 87,640,140 | 85,780,755 |
Obligations of U.S. states, territories and political subdivisions | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale, fixed maturity | [1] | 0 | 0 |
Obligations of U.S. states, territories and political subdivisions | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale, fixed maturity | [1] | 87,640,140 | 85,780,755 |
Obligations of U.S. states, territories and political subdivisions | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale, fixed maturity | [1] | 0 | 0 |
Corporate debt securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale, fixed maturity | 18,426,244 | 23,267,535 | |
Corporate debt securities | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale, fixed maturity | 0 | 0 | |
Corporate debt securities | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale, fixed maturity | 17,486,344 | 22,328,435 | |
Corporate debt securities | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale, fixed maturity | $ 939,900 | $ 939,100 | |
[1] | Denotes fair market value obtained from pricing services. |
Investments in Securities and55
Investments in Securities and Fair Value Schedule of Carrying Value and Fair Value of Financial Assets (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Financial Assets | ||||
Cash and cash equivalents, carrying value | $ 21,790,068 | $ 15,826,515 | $ 23,626,761 | $ 20,810,018 |
Cost-basis investments, carrying value | 3,588,314 | 2,516,608 | ||
Accrued dividends and interest, carrying value | 1,004,126 | 1,063,837 | ||
Financial assets disclosed, carrying value | 26,382,508 | 19,406,960 | ||
Cash and cash equivalents, estimated fair value | 21,790,068 | 15,826,515 | ||
Cost-basis investments, estimated fair value | 3,684,020 | 2,675,817 | ||
Accrued dividends and interest, estimated fair value | 1,004,126 | 1,063,837 | ||
Financial assets disclosed, estimated fair value | 26,478,214 | 19,566,169 | ||
Level 1 | ||||
Financial Assets | ||||
Cash and cash equivalents, estimated fair value | 21,790,068 | 15,826,515 | ||
Cost-basis investments, estimated fair value | 0 | 0 | ||
Accrued dividends and interest, estimated fair value | 1,004,126 | 1,063,837 | ||
Financial assets disclosed, estimated fair value | 22,794,194 | 16,890,352 | ||
Level 2 | ||||
Financial Assets | ||||
Cash and cash equivalents, estimated fair value | 0 | 0 | ||
Cost-basis investments, estimated fair value | 0 | 0 | ||
Accrued dividends and interest, estimated fair value | 0 | 0 | ||
Financial assets disclosed, estimated fair value | 0 | 0 | ||
Level 3 | ||||
Financial Assets | ||||
Cash and cash equivalents, estimated fair value | 0 | 0 | ||
Cost-basis investments, estimated fair value | 3,684,020 | 2,675,817 | ||
Accrued dividends and interest, estimated fair value | 0 | 0 | ||
Financial assets disclosed, estimated fair value | $ 3,684,020 | $ 2,675,817 |
Investments in Securities and56
Investments in Securities and Fair Value Schedule of Fair Value Assets Measured at Unobservable Inputs Reconciliation (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance at January 1 | $ 939,100 | $ 935,700 |
Redemptions and sales | 0 | 0 |
Realized gain – included in net realized (loss) gain on investments | 0 | 0 |
Realized loss – included in net realized (loss) gain on investments | 0 | 0 |
Unrealized gain – included in other comprehensive income | 800 | 3,400 |
Ending balance at December 31 | $ 939,900 | $ 939,100 |
Investments in Securities and57
Investments in Securities and Fair Value Schedule of Estimated Fair Value Hierarchy of Investments and Related Impairments Recognized (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total at Estimated Fair Value | $ 163,350 | $ 22,682 |
Impairment Losses | (233,069) | (10,062) |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total at Estimated Fair Value | 0 | 0 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total at Estimated Fair Value | 0 | 0 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total at Estimated Fair Value | $ 163,350 | $ 22,682 |
Cost-basis investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Valuation Method | Fair Value | Fair Value |
Impaired | Yes | Yes |
Total at Estimated Fair Value | $ 163,350 | $ 22,682 |
Impairment Losses | (233,069) | (10,062) |
Cost-basis investments | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total at Estimated Fair Value | 0 | 0 |
Cost-basis investments | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total at Estimated Fair Value | 0 | 0 |
Cost-basis investments | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total at Estimated Fair Value | $ 163,350 | $ 22,682 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 14,534,665 | $ 12,530,833 |
Less accumulated depreciation | (7,385,714) | (7,070,028) |
Property and equipment, net | $ 7,148,951 | 5,460,805 |
Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment useful life | 3 years | |
Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment useful life | 25 years | |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 1,122,582 | 1,107,582 |
Office buildings and improvements (25 years) | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 3,495,338 | 3,416,096 |
Property and equipment useful life | 25 years | |
Office buildings and improvements (25 years) | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment useful life | 3 years | |
Office buildings and improvements (25 years) | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment useful life | 25 years | |
Furniture, fixtures and equipment (3 to 10 years) | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 8,948,535 | 7,159,250 |
Furniture, fixtures and equipment (3 to 10 years) | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment useful life | 3 years | |
Furniture, fixtures and equipment (3 to 10 years) | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment useful life | 10 years | |
Automobiles (3 years) | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 968,210 | $ 847,905 |
Property and equipment useful life | 3 years |
Reinsurance (Details)
Reinsurance (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Reinsurance Disclosures [Abstract] | |||
Assumed premiums written | $ 34 | $ 38 | $ 6 |
Ceded premiums written | $ 215 | $ 140 | $ 211 |
Reserves for Claims Summary Of
Reserves for Claims Summary Of Transactions In Reserves For Claims (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | |||
Balance, beginning of period | $ 36,677,000 | $ 35,360,000 | $ 39,078,000 |
Provisions related to: Current year | 7,295,013 | 6,860,335 | 7,239,628 |
Provisions related to: Prior years | (2,816,519) | (1,630,619) | (7,811,224) |
Total provision (benefit) charged to operations | 4,478,494 | 5,229,716 | (571,596) |
Claims paid, net of recoveries, related to: Current year | (97,116) | (102,947) | (110,240) |
Claims paid, net of recoveries, related to: Prior years | (3,270,378) | (3,809,769) | (3,036,164) |
Total claims paid, net of recoveries | (3,367,494) | (3,912,716) | (3,146,404) |
Balance, end of year | $ 37,788,000 | $ 36,677,000 | $ 35,360,000 |
Reserves for Claims Summary O61
Reserves for Claims Summary Of The Company's Loss Reserves (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Liability for Future Policy Benefits and Unpaid Claims and Claims Adjustment Expense [Abstract] | ||||
Liability for Unpaid Claims and Claims Adjustment Expense, Reported Claims, Amount | $ 5,066,469 | $ 5,364,645 | ||
IBNR | 32,721,531 | 31,312,355 | ||
Total loss reserves | $ 37,788,000 | $ 36,677,000 | $ 35,360,000 | $ 39,078,000 |
% of Known title claims | 13.40% | 14.60% | ||
% of IBNR | 86.60% | 85.40% | ||
% of Total loss reserves | 100.00% | 100.00% |
Reserves for Claims Change in A
Reserves for Claims Change in Accounting Estimate (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Change in Accounting Estimate [Line Items] | ||||
Liability for Title Claims and Claims Adjustment Expense | $ 37,788,000 | $ 36,677,000 | $ 35,360,000 | $ 39,078,000 |
Reduction in Policyholder Benefits and Claims Incurred, Net | 4,478,494 | 5,229,716 | (571,596) | |
Income Tax Benefit | 5,228,000 | 3,816,000 | 6,746,000 | |
Net Income Attributable to the Company | $ 12,533,905 | $ 9,648,975 | $ 14,708,210 | |
Basic Earnings per Common Share | $ 6.32 | $ 4.75 | $ 7.15 | |
Diluted Earnings per Common Share | $ 6.30 | $ 4.74 | $ 7.08 | |
Change in Accounting IBNR Reserve Estimate | ||||
Change in Accounting Estimate [Line Items] | ||||
Liability for Title Claims and Claims Adjustment Expense | $ (2,200,000) | |||
Reduction in Policyholder Benefits and Claims Incurred, Net | (2,200,000) | |||
Income Tax Benefit | 750,000 | |||
Net Income Attributable to the Company | $ 1,450,000 | |||
Basic Earnings per Common Share | $ 0.71 | |||
Diluted Earnings per Common Share | $ 0.70 |
Reserves for Claims Narrative (
Reserves for Claims Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||
Realized claim recoveries | $ 467,000 | $ 790,000 | $ 1,165,000 |
Provision rate for title insurance claims | 4.00% | 4.80% | (0.50%) |
Minimum | |||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||
Large claim threshold | $ 250,000 |
Earnings Per Common Share and64
Earnings Per Common Share and Share Awards (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Earnings Per Common Share And Share Awards [Line Items] | |||
Incremental dilutive potential common shares, calculated using treasury stock method (in shares) | 5,439 | 5,774 | 20,459 |
Anti-dilutive shares excluded from computation of diluted earnings per share | 0 | 0 | 0 |
SARs and options vesting period | 1 year | ||
Intrinsic values of options exercised | $ 104,000 | $ 82,000 | $ 3,486,000 |
Options and SARs vested | 4,500 | ||
Fair value of options and SARs vested | $ 137,762 | ||
Weighted-average fair values for SARs issued (dollars per share) | $ 31.16 | $ 28.98 | $ 27.55 |
Compensation expense relating to SARs or options vesting | $ 138,000 | $ 121,000 | $ 84,000 |
Total unrecognized compensation cost related to unvested share-based compensation arrangements granted under stock award plans | $ 35,000 | ||
Weighted-average period of unrecognized compensation cost recognition | 3 months | ||
Number of stock options or SARs granted where exercise price was less than market price on date of grant | 0 | ||
Minimum | |||
Earnings Per Common Share And Share Awards [Line Items] | |||
Annual rate at which stock appreciation rights and options are exercisable and vest | 10.00% | ||
SARs and options expiration period | 5 years | ||
Maximum | |||
Earnings Per Common Share And Share Awards [Line Items] | |||
Maximum shares of Company stock to be granted to key employees or directors | 500,000 | ||
Annual rate at which stock appreciation rights and options are exercisable and vest | 20.00% | ||
SARs and options expiration period | 10 years |
Earnings Per Common Share and65
Earnings Per Common Share and Share Awards Computation Of Basic And Diluted Earnings Per Share (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Earnings Per Share [Abstract] | |||
Net Income Attributable to the Company | $ 12,533,905 | $ 9,648,975 | $ 14,708,210 |
Weighted Average Shares Outstanding – Basic | 1,984,360 | 2,031,760 | 2,056,169 |
Incremental shares outstanding assuming the exercise of dilutive stock options and SARs (share settled) | 5,439 | 5,774 | 20,459 |
Weighted average common shares outstanding - Diluted | 1,989,799 | 2,037,534 | 2,076,628 |
Basic Earnings per Common Share | $ 6.32 | $ 4.75 | $ 7.15 |
Diluted Earnings per Common Share | $ 6.30 | $ 4.74 | $ 7.08 |
Earnings Per Common Share and66
Earnings Per Common Share and Share Awards Summary Of Share-Based Award Transactions (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||
Number Of Shares, Options exercised | (1,500) | (1,000) | (2,650) | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | ||||
Weighted Average Exercise Price, Options exercised | $ 36.79 | $ 27.21 | $ 28.63 | |
StockOptionsAndStockAppreciationRightsSARS | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||
Number Of Shares, Outstanding Beginning Balance | 21,000 | 19,000 | 98,150 | |
Number Of Shares, Outstanding Ending Balance | 22,000 | 21,000 | 19,000 | 98,150 |
Number Of Shares, Exercisable as of December 31, 2015 | 20,875 | |||
Number Of Shares, Unvested as of December 31, 2015 | 1,125 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | ||||
Weighted Average Exercise Price, Outstanding Beginning Balance | $ 51.30 | $ 45.74 | $ 30.74 | |
Weighted Average Exercise Price, Outstanding Ending Balance | 57.04 | $ 51.30 | $ 45.74 | $ 30.74 |
Weighted Average Exercise Price, Exercisable as of December 31, 2015 | 56.18 | |||
Weighted Average Exercise Price, Unvested as of December 31, 2015 | $ 73 | |||
Average Remaining Contractual Term, Outstanding Beginning Balance | 3 years 11 months 4 days | 3 years 7 months 20 days | 3 years 5 months 4 days | 3 years 2 months 1 day |
Average Remaining Contractual Term, Exercisable as of December 31, 2015 | 3 years 9 months 18 days | |||
Average Remaining Contractual Term, Unvested as of December 31, 2015 | 6 years 4 months 20 days | |||
Aggregate Intrinsic Value, Outstanding Beginning Balance | $ 453,510 | $ 669,610 | $ 2,871,710 | |
Aggregate Intrinsic Value, Outstanding Ending Balance | 945,055 | $ 453,510 | $ 669,610 | $ 2,871,710 |
Aggregate Intrinsic Value, Exercisable as of December 31, 2015 | 914,680 | |||
Aggregate Intrinsic Value, Unvested as of December 31, 2015 | $ 30,375 | |||
SARs | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||
Number Of Shares, SARs granted | 4,500 | 4,500 | 3,000 | |
Number Of Shares, Options exercised | (2,000) | (1,500) | (79,500) | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | ||||
Weighted Average Exercise Price, SARs granted | $ 73 | $ 68.70 | $ 71.59 | |
Weighted Average Exercise Price, Options exercised | $ 47.88 | $ 49.04 | $ 28.77 |
Earnings Per Common Share and67
Earnings Per Common Share and Share Awards Summary of Information of Fixed Stock Options (Details) | 12 Months Ended |
Dec. 31, 2015$ / sharesshares | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options Outstanding - Number Outstanding | shares | 0 |
$32.00 - $32.00 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
SARs exercise price, lower limit | $ 32 |
SARs exercise price, upper limit | $ 32 |
Share-based Compensation, Shares Authorized under Stock Appreciation Rights Plans, Exercise Price Range, Number of Outstanding Shares | shares | 2,000 |
SARs Outstanding - Weighted Average Remaining Contractual Life | 4 months 20 days |
SARs - Weighted Average Exercise Price | $ 32 |
SARs Exercisable - Number Exercisable | shares | 2,000 |
SARs Exercisable - Weighted Average Exercise Price | $ 32 |
$33.31 - $33.31 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
SARs exercise price, lower limit | 33.31 |
SARs exercise price, upper limit | $ 33.31 |
Share-based Compensation, Shares Authorized under Stock Appreciation Rights Plans, Exercise Price Range, Number of Outstanding Shares | shares | 2,500 |
SARs Outstanding - Weighted Average Remaining Contractual Life | 1 year 4 months 17 days |
SARs - Weighted Average Exercise Price | $ 33.31 |
SARs Exercisable - Number Exercisable | shares | 2,500 |
SARs Exercisable - Weighted Average Exercise Price | $ 33.31 |
$36.80 - $73.00 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
SARs exercise price, lower limit | 36.80 |
SARs exercise price, upper limit | $ 73 |
Share-based Compensation, Shares Authorized under Stock Appreciation Rights Plans, Exercise Price Range, Number of Outstanding Shares | shares | 17,500 |
SARs Outstanding - Weighted Average Remaining Contractual Life | 4 years 8 months 12 days |
SARs - Weighted Average Exercise Price | $ 63.30 |
SARs Exercisable - Number Exercisable | shares | 16,375 |
SARs Exercisable - Weighted Average Exercise Price | $ 62.63 |
$32.00 - $73.00 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
SARs exercise price, lower limit | 32 |
SARs exercise price, upper limit | $ 73 |
Share-based Compensation, Shares Authorized under Stock Appreciation Rights Plans, Exercise Price Range, Number of Outstanding Shares | shares | 22,000 |
SARs Outstanding - Weighted Average Remaining Contractual Life | 3 years 11 months 4 days |
SARs - Weighted Average Exercise Price | $ 57.05 |
SARs Exercisable - Number Exercisable | shares | 20,875 |
SARs Exercisable - Weighted Average Exercise Price | $ 56.18 |
Earnings Per Common Share and68
Earnings Per Common Share and Share Awards Share-Based Assumptions (Details) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Earnings Per Share [Abstract] | |||
Expected Life (in years) | 7 years | 6 years 10 months 24 days | 5 years |
Volatility | 40.70% | 39.90% | 44.60% |
Interest Rate | 2.00% | 2.10% | 1.30% |
Yield Rate | 0.40% | 0.40% | 0.50% |
Earnings Per Common Share and69
Earnings Per Common Share and Share Awards Schedule of Weighted Average Grant Date Fair Value of Stock Awards Plans (Details) - $ / shares | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Earnings Per Share [Abstract] | |||
Weighted-average market price | $ 73 | $ 68.70 | $ 71.59 |
Weighted-average grant-date fair value | $ 31.16 | $ 28.98 | $ 27.55 |
Income Taxes Schedule of Compon
Income Taxes Schedule of Components of Income Taxes (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
Federal | $ 4,179,000 | $ 3,121,000 | $ 4,873,000 |
State | 34,000 | 84,000 | 69,000 |
Total current | 4,213,000 | 3,205,000 | 4,942,000 |
Federal | 976,624 | 620,156 | 1,805,215 |
State | 38,376 | (9,156) | (1,215) |
Deferred Income Tax Expense (Benefit) | 1,015,000 | 611,000 | 1,804,000 |
Total | $ 5,228,000 | $ 3,816,000 | $ 6,746,000 |
Income Taxes Schedule of Deferr
Income Taxes Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred income tax assets: | ||
Accrued benefits and retirement services | $ 3,262,719 | $ 3,061,144 |
Postretirement benefit obligation | 1,199,777 | 1,033,624 |
Other-than-temporary impairment of assets | 428,614 | 323,089 |
Other | 0 | 90,409 |
Allowance for doubtful accounts | 59,108 | 40,183 |
Excess of book over tax depreciation | 13,752 | 15,668 |
Reinsurance and commission payable | 22,000 | 25,000 |
Deferred Tax Assets, Other | 426,463 | 305,119 |
Total deferred income tax assets | 5,412,433 | 4,894,236 |
Deferred income tax liabilities: | ||
Deferred Tax Liabilities, Investments | 6,073,431 | 6,781,994 |
Net unrealized gain on investments | 3,322,336 | 2,871,114 |
Deferred Tax Liabilities, Property, Plant and Equipment | 986,422 | 0 |
Deferred Tax Liabilities, Other | 733,250 | 656,621 |
Total deferred income tax liabilities | 11,115,439 | 10,309,729 |
Net deferred income tax liabilities | $ (5,703,006) | $ (5,415,493) |
Income Taxes Reconciliation of
Income Taxes Reconciliation of Income Tax (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
Anticipated income tax expense | $ 6,115,306 | $ 4,626,555 | $ 7,346,074 |
State income taxes, net of federal income tax benefit | 22,304 | 55,188 | 45,471 |
Tax-exempt interest income (net of amortization) | (981,712) | (876,365) | (772,545) |
Other, net | 72,102 | 10,622 | 127,000 |
Total | $ 5,228,000 | $ 3,816,000 | $ 6,746,000 |
U.S. Federal statutory income tax rate | 34.40% | 34.30% | 34.10% |
Leases (Details)
Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Leases [Abstract] | |||
Rent expense | $ 793 | $ 766 | $ 699 |
Leases Schedule of Future Minim
Leases Schedule of Future Minimum Rental Payments for Operating Leases (Details) | Dec. 31, 2015USD ($) |
Leases [Abstract] | |
2,016 | $ 658,060 |
2,017 | 448,792 |
2,018 | 236,062 |
2,019 | 107,124 |
2,020 | 95,570 |
Thereafter | 81,397 |
Total | $ 1,627,005 |
Retirement Agreements and Oth75
Retirement Agreements and Other Postretirement Benefit Plan (Details) | 12 Months Ended | ||
Dec. 31, 2015USD ($)h | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
DefinedContributionPlanMinimumNumberOfMonthsEmployedEligibility | 3 months | ||
Minimum number of years employed in order to participate in the 401(k) plan | 1 year | ||
Minimum number of hours worked annually in order to participate in the 401(k) plan | h | 1,000 | ||
Defined contribution plan contribution percent | 3.00% | ||
Expenses related to the 401(k) plan | $ 741,000 | $ 676,000 | $ 579,000 |
Amount accrued for all deferred compensation plan agreements | 7,818,000 | 7,111,000 | |
Amount recognized in accumulated other comprehensive income, before tax | (173,812) | (118,150) | (73,246) |
Amount recognized in accumulated other comprehensive income, net of tax | (114,726) | $ (77,988) | $ (48,353) |
Defined Benefit Plan, Expected Future Benefit Payments, Fiscal Year Maturity [Abstract] | |||
2,016 | 9,119 | ||
2,017 | 13,456 | ||
2,018 | 18,511 | ||
2,019 | 20,198 | ||
2,020 | 22,007 | ||
Thereafter | $ 192,134 | ||
Minimum | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Noncompete period following employment | 2 years |
Retirement Agreements and Oth76
Retirement Agreements and Other Postretirement Benefit Plan Components of Net Periodic Benefit Cost (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Compensation and Retirement Disclosure [Abstract] | |||
Service cost - benefits earned during the year | $ 16,748 | $ 14,667 | $ 15,782 |
Interest cost on the projected benefit obligation | 30,772 | 30,472 | 28,412 |
(Accretion) amortization of unrecognized prior service cost | 4,390 | 2,217 | (1,518) |
Amortization of unrecognized losses | 3,514 | 0 | 6,293 |
Net periodic benefits costs | $ 55,424 | $ 47,356 | $ 48,969 |
Retirement Agreements and Oth77
Retirement Agreements and Other Postretirement Benefit Plan Effected of the Funded Status on the Balance Sheet (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Compensation and Retirement Disclosure [Abstract] | ||
Fully eligible active employee | $ (483,985) | $ (409,492) |
Non-eligible active employees | (398,638) | (362,045) |
Plan assets | 0 | 0 |
Funded status of accumulated postretirement benefit obligation, recognized in other liabilities | $ (882,623) | $ (771,537) |
Retirement Agreements and Oth78
Retirement Agreements and Other Postretirement Benefit Plan Development of the Accumulated Postretirement Benefit Obligation (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Accrued postretirement benefit obligation at beginning of year | $ (771,537) | $ (679,277) | |
Service cost – benefits earned during the year | (16,748) | (14,667) | $ (15,782) |
Interest cost on projected benefit obligation | (30,772) | (30,472) | (28,412) |
Actuarial loss | (63,566) | (47,121) | |
Accrued postretirement benefit obligation at end of year | $ (882,623) | $ (771,537) | $ (679,277) |
Retirement Agreements and Oth79
Retirement Agreements and Other Postretirement Benefit Plan Changes in Amounts Related to Accumulated Other Comprehensive Income, Pre-tax (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Balance at beginning of year | $ 118,150 | $ 73,246 | |
Unrecognized prior service cost | (4,390) | (2,217) | $ 1,518 |
Amortization of loss, net | (3,514) | 0 | (6,293) |
Actuarial loss | 63,566 | 47,121 | (77,213) |
Balance at end of year | $ 173,812 | $ 118,150 | $ 73,246 |
Retirement Agreements and Oth80
Retirement Agreements and Other Postretirement Benefit Plan Amounts in Accumulated Other Comprehensive Income, Pre-tax, to be Recognized as Components of Net Periodic Benefit Costs (Details) | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Compensation and Retirement Disclosure [Abstract] | |
Amortization of unrecognized prior service cost | $ 0 |
Amortization of unrecognized loss | 8,941 |
Net periodic benefit cost at end of year | $ 8,941 |
Retirement Agreements and Oth81
Retirement Agreements and Other Postretirement Benefit Plan Effects on Net Periodic Postretirement Benefit Cost and Accumulated Postretirement Benefit Obligation (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Compensation and Retirement Disclosure [Abstract] | ||
One-Percent Point Increase: Effect on the service cost component | $ 2,600 | |
One-Percent Point Increase: Effect on interest cost | 7,339 | |
One-Percent Point Increase: Total effect on the net periodic postretirement benefit cost | 9,939 | |
One-Percent Point Decrease: Effect on the service cost component | $ (1,989) | |
One-Percent Point Decrease: Effect on interest cost | (5,721) | |
One-Percent Point Decrease: Total effect on the net periodic postretirement benefit cost | (7,710) | |
One-Percent Point Increase: Effect on those currently receiving benefits (retirees and spouses) | 0 | |
One-Percent Point Increase: Effect on active fully eligible | 81,657 | |
One-Percent Point Increase: Effect on actives not yet eligible | 101,813 | |
One-Percent Point Increase: Total effect on the accumulated postretirement benefit obligation | $ 183,470 | |
One-Percent Point Decrease: Effect on those currently receiving benefits (retirees and spouses) | 0 | |
One-Percent Point Decrease: Effect on active fully eligible | (65,192) | |
One-Percent Point Decrease: Effect on actives not yet eligible | (77,845) | |
One-Percent Point Decrease: Total effect on the accumulated postretirement benefit obligation | $ (143,037) |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Cash held for escrow and trust deposits | $ 20,510 | $ 18,674 | |
Like-kind exchange deposits and reverse exchange property | $ 171,010 | $ 82,477 | |
Net Premiums Written Percentage | 10.30% | 23.60% | 16.40% |
Segment Information Selected Fi
Segment Information Selected Financial Information By Segment (Details) | 12 Months Ended | ||
Dec. 31, 2015USD ($)segment | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Segment Reporting Information [Line Items] | |||
Number of reportable segments | segment | 1 | ||
Insurance And Other Services Revenue | $ 122,784,916 | $ 118,591,491 | $ 122,161,089 |
Investment income – interest and dividends | 4,531,319 | 4,259,501 | 3,894,608 |
Net realized (loss) gain on investments | (116,163) | 268,294 | 195,800 |
Total Revenues | 127,200,072 | 123,119,286 | 126,251,497 |
Operating expenses | 109,423,019 | 109,630,788 | 104,708,759 |
Income (loss) before income taxes | 17,777,053 | 13,488,498 | 21,542,738 |
Total assets | 211,522,029 | 198,039,210 | 188,305,816 |
Title Insurance | |||
Segment Reporting Information [Line Items] | |||
Insurance And Other Services Revenue | 118,144,981 | 114,279,532 | 118,153,904 |
Investment income – interest and dividends | 4,073,857 | 3,835,209 | 3,599,106 |
Net realized (loss) gain on investments | (13,603) | 213,709 | 225,661 |
Total Revenues | 122,205,235 | 118,328,450 | 121,978,671 |
Operating expenses | 104,594,829 | 105,290,627 | 99,899,804 |
Income (loss) before income taxes | 17,610,406 | 13,037,823 | 22,078,867 |
Total assets | 163,582,898 | 153,072,950 | 146,110,146 |
All Other | |||
Segment Reporting Information [Line Items] | |||
Insurance And Other Services Revenue | 6,479,484 | 5,904,059 | 5,507,069 |
Investment income – interest and dividends | 574,132 | 517,628 | 388,838 |
Net realized (loss) gain on investments | (102,560) | 54,585 | (29,861) |
Total Revenues | 6,951,056 | 6,476,272 | 5,866,046 |
Operating expenses | 6,598,055 | 5,862,577 | 6,239,155 |
Income (loss) before income taxes | 353,001 | 613,695 | (373,109) |
Total assets | 47,939,131 | 44,966,260 | 42,195,670 |
Intersegment Eliminations | |||
Segment Reporting Information [Line Items] | |||
Insurance And Other Services Revenue | (1,839,549) | (1,592,100) | (1,499,884) |
Investment income – interest and dividends | (116,670) | (93,336) | (93,336) |
Net realized (loss) gain on investments | 0 | 0 | 0 |
Total Revenues | (1,956,219) | (1,685,436) | (1,593,220) |
Operating expenses | (1,769,865) | (1,522,416) | (1,430,200) |
Income (loss) before income taxes | (186,354) | (163,020) | (163,020) |
Total assets | $ 0 | $ 0 | $ 0 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) | 12 Months Ended | ||
Dec. 31, 2015Vote$ / Rightshares | Dec. 31, 2014shares | Oct. 31, 2012$ / sharesshares | |
Class of Stock [Line Items] | |||
Number of votes | Vote | 100 | ||
Shares of Class A Preferred Stock Available Per Right | 0.01 | ||
Threshold of days following requirements for exercise rights | 10 days | ||
Redemption price per right | $ / Right | 0.01 | ||
Purchase price of preferred stock per Unit | $ / shares | $ 220 | ||
Preferred stock, shares authorized | 1,000,000 | 1,000,000 | |
Preferred Class A | |||
Class of Stock [Line Items] | |||
Preferred stock, shares authorized | 200,000 | 200,000 | 200,000 |
Minimum | |||
Class of Stock [Line Items] | |||
Threshold of common stock percentage for common stock diluted | 15.00% | ||
Ownership percentage of common stock | 15.00% | ||
Threshold of beneficial ownership of outstanding common stock for the Rights exchanging | 15.00% | ||
Threshold of percentage of assets or earning power sold or transferred for merger | 50.00% | ||
Threshold of prior acquisition common stock percentage for the Right exchanging | 50.00% | ||
Plan Amendment [Member] | |||
Class of Stock [Line Items] | |||
Purchase price of preferred stock per Unit | $ / shares | $ 80 | ||
Plan Amendment [Member] | Preferred Class A | |||
Class of Stock [Line Items] | |||
Preferred stock, shares authorized | 100,000 |
Concentration of Credit Risk (D
Concentration of Credit Risk (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Risks and Uncertainties [Abstract] | ||||
Threshold of not insured deposits by FDIC | $ 250,000 | |||
Cash and cash equivalents | 21,790,068 | $ 15,826,515 | $ 23,626,761 | $ 20,810,018 |
Cash and cash equivalents uninsured amount | $ 21,300,000 | $ 15,300,000 |
Business Concentration (Details
Business Concentration (Details) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Net Premiums Written | |||
Concentration Risk [Line Items] | |||
Concentration percentage | 10.30% | 23.60% | 16.40% |
TEXAS | Geographic Concentration Risk | |||
Concentration Risk [Line Items] | |||
Concentration percentage | 22.40% | 36.50% | 26.80% |
NORTH CAROLINA | Geographic Concentration Risk | |||
Concentration Risk [Line Items] | |||
Concentration percentage | 32.80% | 28.40% | 27.40% |
SOUTH CAROLINA | Geographic Concentration Risk | |||
Concentration Risk [Line Items] | |||
Concentration percentage | 10.10% | 7.70% | 11.40% |
Related Party Transactions Summ
Related Party Transactions Summary Of Approximate Values By Year Found Within Consolidated Balance Sheets (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Related Party Transaction [Line Items] | ||
Other investments | $ 10,106,828 | $ 8,530,929 |
Premiums and fees receivable | 8,392,697 | 8,544,183 |
Title Insurance Agencies | ||
Related Party Transaction [Line Items] | ||
Other investments | 6,519,000 | 6,014,000 |
Premiums and fees receivable | $ 719,000 | $ 666,000 |
Related Party Transactions Su88
Related Party Transactions Summary Of Approximate Values By Year Found Within Consolidated Statements Of Income (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Related Party Transaction [Line Items] | |||
Net premiums written | $ 112,475,686 | $ 109,963,556 | $ 113,886,266 |
Other income | 10,309,230 | 8,627,935 | 8,274,823 |
Insurance Commissions | 62,174,301 | 65,632,353 | 67,150,810 |
Title Insurance Agencies | |||
Related Party Transaction [Line Items] | |||
Net premiums written | 14,015,000 | 11,783,000 | 12,442,000 |
Other income | 2,618,000 | 2,043,000 | 1,839,000 |
Insurance Commissions | $ 9,700,000 | $ 8,049,000 | $ 8,465,000 |
Related Party Transactions Comp
Related Party Transactions Company Repurchase of Common Stock from Related Parties (Details) - Officer - $ / shares | 3 Months Ended | |
Dec. 31, 2013 | Jun. 30, 2013 | |
Related Party Transaction [Line Items] | ||
Treasury Stock, Shares, Acquired | 28,130 | 17,524 |
Treasury Stock Acquired, Average Cost Per Share | $ 80.01 | $ 71.50 |
Acquisition (Details)
Acquisition (Details) - USD ($) | Aug. 01, 2015 | May. 21, 2014 | Apr. 02, 2012 | Dec. 31, 2015 | Dec. 31, 2014 |
1st Investors Title Agency [Member] [Domain] | |||||
Business Acquisition [Line Items] | |||||
Ownership percentage acquired | 20.00% | ||||
Fair value of total consideration to be transferred | $ 72,600 | ||||
Business Combination, Step Acquisition, Equity Interest in Acquiree, Percentage | 45.00% | ||||
Business Combination, Step Acquisition, Equity Interest in Acquiree, Including Subsequent Acquisition, Percentage | 65.00% | ||||
United Title Agency [Member] | |||||
Business Acquisition [Line Items] | |||||
Ownership percentage acquired | 30.00% | 70.00% | |||
Fair value of total consideration to be transferred | $ 515,275 | ||||
Business acquisition, remaining ownership interest | 30.00% | ||||
Business Acquisition Majority Purchase Price | $ 1,041,250 | ||||
Accumulated amortization of intangible assets | $ 261,315 | $ 191,631 | |||
Net intangible assets | $ 1,220,585 | $ 1,290,269 | |||
United Title Agency [Member] | Non-Compete Contract | |||||
Business Acquisition [Line Items] | |||||
Intangible assets acquired | $ 645,685 | ||||
Intangible assets amortized period | 10 years | ||||
United Title Agency [Member] | Referral Relationships | |||||
Business Acquisition [Line Items] | |||||
Intangible assets acquired | $ 836,215 | ||||
Intangible assets amortized period | 12 years |
Acquisition Reconciliation Of T
Acquisition Reconciliation Of Total Redeemable Equity (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | |||
Beginning balance at January 1 | $ 0 | $ 545,489 | $ 493,861 |
Net income attributable to redeemable noncontrolling interest | 0 | 23,523 | 88,528 |
Distributions to noncontrolling interest | 0 | (168,057) | (36,900) |
Payments to Acquire Businesses and Interest in Affiliates | 0 | (515,275) | 0 |
Redeemable noncontrolling interest resulting from subsidiary purchase | 0 | 114,320 | 0 |
Balance, net | $ 0 | $ 0 | $ 545,489 |
Acquisition Schedule of Aggrega
Acquisition Schedule of Aggregate Amortization Expense for Intangible Assets (Details) | Dec. 31, 2015USD ($) |
Business Combinations [Abstract] | |
2,016 | $ 69,685 |
2,017 | 134,253 |
2,018 | 134,253 |
2,019 | 134,253 |
2,020 | 134,253 |
Thereafter | 613,888 |
Total | $ 1,220,585 |
Accumulated Other Comprehensi93
Accumulated Other Comprehensive Income Balances Of Each Component Of Accumulated Other Comprehensive Income, Net Of Tax (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Beginning balance | $ 12,856,509 | $ 11,347,404 | $ 8,818,430 |
Other comprehensive income before reclassifications | (1,397,270) | 1,843,011 | 2,656,145 |
Amounts reclassified from accumulated other comprehensive income | 23,776 | (333,906) | (127,171) |
Other comprehensive (loss) income | (1,373,494) | 1,509,105 | 2,528,974 |
Ending balance | 11,483,015 | 12,856,509 | 11,347,404 |
Unrealized Gains And Losses On Available-For-Sale Securities | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Beginning balance | 12,934,497 | 11,395,757 | 8,920,884 |
Other comprehensive income before reclassifications | (1,355,316) | 1,874,111 | 2,605,184 |
Amounts reclassified from accumulated other comprehensive income | 18,560 | (335,371) | (130,311) |
Other comprehensive (loss) income | (1,336,756) | 1,538,740 | 2,474,873 |
Ending balance | 11,597,741 | 12,934,497 | 11,395,757 |
Postretirement Benefits Plans | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Beginning balance | (77,988) | (48,353) | (102,454) |
Other comprehensive income before reclassifications | (41,954) | (31,100) | 50,961 |
Amounts reclassified from accumulated other comprehensive income | 5,216 | 1,465 | 3,140 |
Other comprehensive (loss) income | (36,738) | (29,635) | 54,101 |
Ending balance | $ (114,726) | $ (77,988) | $ (48,353) |
Accumulated Other Comprehensi94
Accumulated Other Comprehensive Income Reclassification Out Of Accumulated Other Comprehensive Income (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Net realized gain on investment | $ (116,163) | $ 268,294 | $ 195,800 | |
Unrecognized prior service credit (cost) | (4,390) | (2,217) | 1,518 | |
Unrecognized loss | (3,514) | 0 | (6,293) | |
Income before Income Taxes | 17,777,053 | 13,488,498 | 21,542,738 | |
Tax | (5,228,000) | (3,816,000) | (6,746,000) | |
Net income | 12,549,053 | 9,672,498 | 14,796,738 | |
Reclassification Out Of Accumulated Other Comprehensive Income | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Net income | (23,776) | 333,906 | 127,171 | |
Reclassification Out Of Accumulated Other Comprehensive Income | Unrealized Gains And Losses On Available-For-Sale Securities | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Net realized gain on investment | 718,837 | 518,279 | 229,869 | |
Impairments of other assets and investments | (751,059) | (14,542) | (34,070) | |
Income before Income Taxes | (32,222) | 503,737 | 195,799 | |
Tax | 13,662 | (168,366) | (65,488) | |
Net income | (18,560) | 335,371 | 130,311 | |
Reclassification Out Of Accumulated Other Comprehensive Income | Postretirement Benefits Plans | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Unrecognized prior service credit (cost) | (4,390) | (2,217) | 1,518 | |
Unrecognized loss | (3,514) | 0 | (6,293) | |
Income before Income Taxes | [1] | (7,904) | (2,217) | (4,775) |
Tax | 2,688 | 752 | 1,635 | |
Net income | $ (5,216) | $ (1,465) | $ (3,140) | |
[1] | These accumulated other comprehensive income components are not reclassified to net income in their entirety in the same reporting period. The amounts are presented within salaries, employee benefits and payroll taxes on the Consolidated Statements of Income as amortized. Amortization related to postretirement benefit plans is included in the computation of net periodic pension costs, as discussed in Note 10. |
Schedule I (Details)
Schedule I (Details) | Dec. 31, 2015USD ($) | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost | $ 141,955,052 | [1],[2] |
Market Value | 159,663,201 | [2] |
Amount at which shown in the Balance Sheet | 159,663,201 | [2],[3] |
Investments in related party accounted for under the cost and equity method | 888,881 | |
Fixed maturities | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost | 102,015,826 | [1] |
Market Value | 106,066,384 | |
Amount at which shown in the Balance Sheet | 106,066,384 | [3] |
States, municipalities and political subdivisions | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost | 31,670,491 | |
Market Value | 32,648,914 | |
Amount at which shown in the Balance Sheet | 32,648,914 | |
Issuer Obligations Of U S States Territories And Political Subdivisions Special Revenue [Member] | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost | 40,563,639 | |
Market Value | 42,452,224 | |
Amount at which shown in the Balance Sheet | 42,452,224 | |
Public Utility, Bonds [Member] | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost | 11,852,124 | |
Market Value | 12,539,002 | |
Amount at which shown in the Balance Sheet | 12,539,002 | |
Corporate Debt Securities [Member] | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost | 17,004,985 | |
Market Value | 17,486,344 | |
Amount at which shown in the Balance Sheet | 17,486,344 | |
Auction Rate Securities [Member] | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost | 924,587 | |
Market Value | 939,900 | |
Amount at which shown in the Balance Sheet | 939,900 | |
Equity securities | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost | 23,855,873 | [1] |
Market Value | 37,513,464 | |
Amount at which shown in the Balance Sheet | 37,513,464 | [3] |
Public utilities | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost | 563,857 | |
Market Value | 778,908 | |
Amount at which shown in the Balance Sheet | 778,908 | |
Banks, trusts and insurance companies | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost | 4,839,060 | |
Market Value | 6,242,784 | |
Amount at which shown in the Balance Sheet | 6,242,784 | |
Industrial, miscellaneous and all other | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost | 15,988,095 | |
Market Value | 25,916,387 | |
Amount at which shown in the Balance Sheet | 25,916,387 | |
Technology [Member] | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost | 2,464,861 | |
Market Value | 4,575,385 | |
Amount at which shown in the Balance Sheet | 4,575,385 | |
Short-term investments | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost | 6,865,406 | |
Market Value | 6,865,406 | |
Amount at which shown in the Balance Sheet | 6,865,406 | |
Total other investments | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost | 9,217,947 | |
Market Value | 9,217,947 | |
Amount at which shown in the Balance Sheet | 9,217,947 | |
Total Other Investments [Member] | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost | 16,083,353 | |
Market Value | 16,083,353 | |
Amount at which shown in the Balance Sheet | $ 16,083,353 | |
[1] | Fixed maturities are shown at amortized cost and equity securities are shown at original cost | |
[2] | The above summary of investments does not include investments in related parties accounted for under the cost and equity methods of accounting in the amount of $888,881. | |
[3] | available-for-sale and shown at estimated fair value. Equity securities are shown at fair value |
Schedule II _Disclosure_ - Con
Schedule II [Disclosure] - Condensed Balance Sheets (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Condensed Financial Statements, Captions [Line Items] | ||||
Cash and cash equivalents | $ 21,790,068 | $ 15,826,515 | $ 23,626,761 | $ 20,810,018 |
Available-for-sale, fixed maturity | 106,066,384 | 109,048,290 | ||
Available for sale securities, equity securities | 37,513,464 | 39,254,981 | ||
Short-term investments | 6,865,406 | 2,576,993 | ||
Other investments | 10,106,828 | 8,530,929 | ||
Premiums and fees receivable | 8,392,697 | 8,544,183 | ||
Accrued interest and dividends | 1,004,126 | 1,063,837 | ||
Property, net | 7,148,951 | 5,460,805 | ||
Total Assets | 211,522,029 | 198,039,210 | 188,305,816 | |
Accounts payable and accrued liabilities | 25,043,588 | 18,290,819 | ||
Deferred income taxes, net | 5,703,006 | 5,415,493 | ||
Total liabilities | 68,744,949 | 60,475,504 | ||
Preferred stock (1,000,000 authorized shares; no shares issued) | 0 | 0 | ||
Common stock - no par value (10,000,000 authorized shares; 1,949,797 and 2,023,270 shares issued and outstanding 2015 and 2014, respectively, excluding 291,676 shares for 2015 and 2014 of common stock held by the Company’s subsidiary) | 1 | 1 | ||
Retained earnings | 131,186,866 | 124,707,196 | ||
Accumulated other comprehensive income | 11,483,015 | 12,856,509 | 11,347,404 | 8,818,430 |
Total stockholders’ equity attributable to the Company | 142,669,882 | 137,563,706 | ||
Total Liabilities and Stockholders’ Equity | $ 211,522,029 | $ 198,039,210 | ||
Preferred stock, shares authorized | 1,000,000 | 1,000,000 | ||
Preferred stock, shares issued | 0 | 0 | ||
Common stock, no par value | ||||
Common stock, shares authorized | 10,000,000 | 10,000,000 | ||
Common stock, shares issued | 1,949,797 | 2,023,270 | ||
Common stock, shares outstanding | 1,949,797 | 2,023,270 | ||
Common stock, held by Company's subsidiary | 291,676 | 291,676 | ||
Parent Company | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Cash and cash equivalents | $ 8,347,004 | $ 7,942,481 | $ 7,210,956 | $ 9,414,297 |
Available-for-sale, fixed maturity | 21,779,123 | 24,358,323 | ||
Available for sale securities, equity securities | 2,638,330 | 2,529,982 | ||
Short-term investments | 3,005,647 | 284,069 | ||
Investments in affiliated companies | 99,951,433 | 96,395,352 | ||
Other investments | 3,089,550 | 1,578,236 | ||
Premiums and fees receivable | 43,690 | 56,428 | ||
Other receivables | 3,080,245 | 2,220,330 | ||
Current income taxes recoverable | 1,733,314 | 1,876,242 | ||
Accrued interest and dividends | 120,369 | 128,221 | ||
Property, net | 2,288,776 | 2,371,078 | ||
Total Assets | 146,077,481 | 139,740,742 | ||
Accounts payable and accrued liabilities | 3,267,274 | 2,074,347 | ||
Deferred income taxes, net | 140,325 | 102,689 | ||
Total liabilities | 3,407,599 | 2,177,036 | ||
Preferred stock (1,000,000 authorized shares; no shares issued) | 0 | 0 | ||
Common stock - no par value (10,000,000 authorized shares; 1,949,797 and 2,023,270 shares issued and outstanding 2015 and 2014, respectively, excluding 291,676 shares for 2015 and 2014 of common stock held by the Company’s subsidiary) | 1 | 1 | ||
Retained earnings | 131,186,866 | 124,707,196 | ||
Accumulated other comprehensive income | 11,483,015 | 12,856,509 | ||
Total stockholders’ equity attributable to the Company | 142,669,882 | 137,563,706 | ||
Total Liabilities and Stockholders’ Equity | $ 146,077,481 | $ 139,740,742 | ||
Preferred stock, shares authorized | 1,000,000 | 1,000,000 | ||
Preferred stock, shares issued | 0 | 0 | ||
Common stock, no par value | ||||
Common stock, shares authorized | 10,000,000 | 10,000,000 | ||
Common stock, shares issued | 1,949,797 | 2,023,270 | ||
Common stock, shares outstanding | 1,949,797 | 2,023,270 | ||
Common stock, held by Company's subsidiary | 291,676 | 291,676 |
Schedule II _Disclosure_ - C97
Schedule II [Disclosure] - Condensed Statement of Income (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Condensed Financial Statements, Captions [Line Items] | |||
Investment income – interest and dividends | $ 4,531,319 | $ 4,259,501 | $ 3,894,608 |
Net realized (loss) gain on investments | (116,163) | 268,294 | 195,800 |
Other | 10,309,230 | 8,627,935 | 8,274,823 |
Total Revenues | 127,200,072 | 123,119,286 | 126,251,497 |
Salaries, employee benefits and payroll taxes | 28,041,213 | 25,218,225 | 25,386,511 |
Office occupancy and operations | 5,885,336 | 5,049,962 | 4,430,220 |
Business development | 2,373,270 | 2,333,491 | 2,145,639 |
Professional and contract labor fees | 2,691,411 | 2,676,483 | 2,171,606 |
Other expenses | 884,438 | 820,882 | 755,407 |
Income before Income Taxes | 17,777,053 | 13,488,498 | 21,542,738 |
Income Tax Benefit | 5,228,000 | 3,816,000 | 6,746,000 |
Net Income | 12,549,053 | 9,672,498 | 14,796,738 |
Net Income Attributable to Noncontrolling Interests | 15,148 | ||
Net Income Attributable to Redeemable Noncontrolling Interests | 23,523 | 88,528 | |
Net Income Attributable to the Company | $ 12,533,905 | $ 9,648,975 | $ 14,708,210 |
Basic Earnings per Common Share | $ 6.32 | $ 4.75 | $ 7.15 |
Weighted Average Shares Outstanding – Basic | 1,984,360 | 2,031,760 | 2,056,169 |
Diluted Earnings per Common Share | $ 6.30 | $ 4.74 | $ 7.08 |
Weighted Average Shares Outstanding – Diluted | 1,989,799 | 2,037,534 | 2,076,628 |
Common Stock, Dividends, Per Share, Declared | $ 0.40 | $ 0.32 | $ 0.32 |
Parent Company | |||
Condensed Financial Statements, Captions [Line Items] | |||
Investment income – interest and dividends | $ 535,963 | $ 482,711 | $ 348,933 |
Net realized (loss) gain on investments | (152,026) | 9,169 | (50,778) |
Rental income | 765,134 | 772,256 | 748,764 |
Other | 385,058 | 59,569 | 68,966 |
Total Revenues | 1,534,129 | 1,323,705 | 1,115,885 |
Salaries, employee benefits and payroll taxes | 651,957 | 673,729 | 576,429 |
Office occupancy and operations | 239,176 | 270,881 | 408,373 |
Business development | 76,684 | 49,059 | 45,022 |
Taxes – other than payroll and income | 213,466 | 200,718 | 188,314 |
Professional and contract labor fees | 378,265 | 192,064 | 351,093 |
Other expenses | 198,788 | 193,681 | 177,810 |
Total operating expenses | 1,758,336 | 1,580,132 | 1,747,041 |
Equity in Net Income of Affiliated Companies | 12,640,260 | 9,777,925 | 15,164,894 |
Income before Income Taxes | 12,416,053 | 9,521,498 | 14,533,738 |
Income Tax Benefit | (133,000) | (151,000) | (263,000) |
Net Income | 12,549,053 | 9,672,498 | 14,796,738 |
Net Income Attributable to Noncontrolling Interests | 15,148 | ||
Net Income Attributable to Redeemable Noncontrolling Interests | 23,523 | 88,528 | |
Net Income Attributable to the Company | $ 12,533,905 | $ 9,648,975 | $ 14,708,210 |
Basic Earnings per Common Share | $ 6.32 | $ 4.75 | $ 7.15 |
Weighted Average Shares Outstanding – Basic | 1,984,360 | 2,031,760 | 2,056,169 |
Diluted Earnings per Common Share | $ 6.30 | $ 4.74 | $ 7.08 |
Weighted Average Shares Outstanding – Diluted | 1,989,799 | 2,037,534 | 2,076,628 |
Common Stock, Dividends, Per Share, Declared | $ 0.40 | $ 0.32 | $ 0.32 |
Schedule II _Disclosure_ - C98
Schedule II [Disclosure] - Condensed Statement of Cash Flows (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Operating Activities | |||
Net income | $ 12,549,053 | $ 9,672,498 | $ 14,796,738 |
Depreciation | 1,105,839 | 833,104 | 669,727 |
Amortization, net | 728,510 | 630,782 | 507,111 |
Net loss on disposals of property | (24,867) | 24,608 | 7,831 |
Net (earnings) loss from other investments | (2,002,276) | (1,450,980) | (1,257,266) |
Provision (benefit) for deferred income taxes | 1,015,000 | 611,000 | 1,804,000 |
Increase in receivables | 217,594 | 206,041 | 2,287,489 |
Decrease (increase) in income taxes recoverable | 0 | 366,772 | (366,772) |
Decrease (increase) in other assets | (4,879,418) | (393,359) | (2,906,224) |
Increase (decrease) in accounts payable and accrued liabilities | 6,689,204 | (2,080,492) | 4,923,858 |
Net cash provided by (used in) operating activities | 16,889,631 | 9,683,980 | 15,304,485 |
Investing Activities | |||
Purchases of available-for-sale securities | (20,164,353) | (30,899,452) | (23,466,037) |
Purchases of short-term securities | (4,593,240) | (911,188) | (2,638,908) |
Purchases of and net earnings from other investments | (3,717,978) | (1,689,950) | (1,369,210) |
Proceeds from sales and maturities of available-for-sale securities | 22,151,408 | 12,472,817 | 9,892,634 |
Proceeds from sales and maturities of short-term securities | 304,827 | 6,260,568 | 8,280,183 |
Proceeds from sales and distributions of other investments | 3,911,286 | 1,584,337 | 2,107,675 |
Proceeds from sales of other assets | 149,128 | 38,052 | 40,366 |
Purchases of property | (2,742,619) | (2,017,379) | (1,424,108) |
Proceeds from disposals of property | 75,060 | 24,400 | 24,335 |
Net cash provided by (used in) investing activities | (4,699,081) | (15,653,070) | (8,553,070) |
Financing Activities | |||
Repurchases of common stock | (5,483,953) | (1,055,765) | (4,262,260) |
Exercise of options | 54,988 | 27,100 | 75,797 |
Excess tax benefit | 26,875 | 15,999 | 946,605 |
Dividends paid | (789,907) | (650,433) | (657,914) |
Net cash provided by (used in) financing activities | (6,226,997) | (1,831,156) | (3,934,672) |
Net Increase (Decrease) in Cash and Cash Equivalents | 5,963,553 | (7,800,246) | 2,816,743 |
Cash and Cash Equivalents, Beginning of Period | 15,826,515 | 23,626,761 | 20,810,018 |
Cash and Cash Equivalents, End of Period | 21,790,068 | 15,826,515 | 23,626,761 |
Parent Company | |||
Operating Activities | |||
Net income | 12,549,053 | 9,672,498 | 14,796,738 |
Equity in net earnings of subsidiaries | (12,640,260) | (9,777,925) | (15,164,894) |
Depreciation | 112,690 | 136,369 | 136,031 |
Amortization, net | 192,654 | 210,768 | 69,969 |
Issuance of common stock in payment of bonuses and fees | 137,759 | 164,730 | 76,110 |
Net loss on disposals of property | 1,683 | 2,722 | 0 |
Net realized loss (gain) on investments | 152,026 | (19,231) | 50,778 |
Net (earnings) loss from other investments | (237,686) | 322 | (32,499) |
Provision (benefit) for deferred income taxes | 13,000 | (40,000) | (93,000) |
Increase in receivables | (847,177) | (685,052) | (146,247) |
Decrease (increase) in income taxes recoverable | 142,928 | 1,354,735 | (1,646,373) |
Decrease (increase) in other assets | 7,852 | (24,650) | (101) |
Increase (decrease) in accounts payable and accrued liabilities | 1,192,927 | 516,252 | (8,118) |
Net cash provided by (used in) operating activities | 777,449 | 1,511,538 | (1,961,606) |
Investing Activities | |||
Dividends received from subsidiaries | 7,630,835 | 5,051,664 | 9,252,919 |
Purchases of available-for-sale securities | (260,044) | (6,883,612) | (10,360,919) |
Purchases of short-term securities | (2,721,578) | (104,207) | (58,283) |
Purchases of and net earnings from other investments | (2,007,798) | (964,197) | (49,485) |
Proceeds from sales and maturities of available-for-sale securities | 2,475,557 | 1,631,987 | 3,027,896 |
Proceeds from sales and maturities of short-term securities | 0 | 2,033,634 | 2,748,876 |
Proceeds from sales and distributions of other investments | 734,170 | 123,017 | 45,384 |
Proceeds from sales of other assets | 0 | 0 | 4,832 |
Purchases of property | (32,071) | (5,200) | (24,820) |
Proceeds from disposals of property | 0 | 0 | 7,200 |
Net cash provided by (used in) investing activities | 5,819,071 | 883,086 | 4,593,600 |
Financing Activities | |||
Repurchases of common stock | (5,483,953) | (1,055,765) | (4,262,260) |
Exercise of options | 54,988 | 27,100 | 75,797 |
Excess tax benefit | 26,875 | 15,999 | 9,042 |
Dividends paid | (789,907) | (650,433) | (657,914) |
Net cash provided by (used in) financing activities | (6,191,997) | (1,663,099) | (4,835,335) |
Net Increase (Decrease) in Cash and Cash Equivalents | 404,523 | 731,525 | (2,203,341) |
Cash and Cash Equivalents, Beginning of Period | 7,942,481 | 7,210,956 | 9,414,297 |
Cash and Cash Equivalents, End of Period | 8,347,004 | 7,942,481 | 7,210,956 |
Supplemental Disclosures: | |||
Income tax payments, net | $ 4,598,000 | $ 2,699,000 | $ 5,583,000 |
Schedule II _Disclosure_ - Not
Schedule II [Disclosure] - Notes to Condensed Financial Statements (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Condensed Financial Statements, Captions [Line Items] | ||||
Cash dividends paid to parent by wholly owned subsidiaries | $ 7,630,835 | $ 5,051,664 | $ 9,252,919 | |
Investors Title Insurance Company, net | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Cash dividends paid (received) to (from) Parent Company | [1] | 7,134,823 | 4,906,664 | 9,102,919 |
Cash dividends paid to parent by wholly owned subsidiaries | 7,251,493 | 5,000,000 | 9,196,255 | |
Dividend received from parent company | 116,670 | 93,336 | 93,336 | |
Investors Title Exchange Corporation | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Cash dividends paid to parent by wholly owned subsidiaries | 245,000 | 50,000 | 50,000 | |
Investors Title Accommodation Corporation | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Cash dividends paid to parent by wholly owned subsidiaries | 12,000 | 10,000 | 0 | |
Investors Capital Management Company | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Cash dividends paid to parent by wholly owned subsidiaries | 9,012 | 40,000 | 0 | |
Investors Trust Company | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Cash dividends paid to parent by wholly owned subsidiaries | 0 | 0 | 100,000 | |
Investors Title Commercial Agency, LLC | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Cash dividends paid to parent by wholly owned subsidiaries | $ 230,000 | $ 45,000 | $ 0 | |
[1] | Total dividends of $7,251,493, $5,000,000 and $9,196,255 paid to the Parent Company in 2015, 2014 and 2013, respectively, netted with dividends of $116,670, $93,336 and $93,336 received from the Parent Company in 2015, 2014 and 2013, respectively. |
Schedule III (Details)
Schedule III (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Supplementary Insurance Information, by Segment [Line Items] | |||
Supplementary Insurance Information, Deferred Policy Acquisition Costs | $ 0 | $ 0 | $ 0 |
Future Policy Benefits, Losses, Claims and Loss Expenses | 37,788,000 | 36,677,000 | 35,360,000 |
Unearned Premiums | 0 | 0 | 0 |
Other Policy Claims and Benefits Payable | 341,191 | 236,401 | 389,807 |
Premium Revenue | 112,475,686 | 109,963,556 | 113,886,266 |
Net Investment Income | 4,531,319 | 4,259,501 | 3,894,608 |
Benefits, Claims. Losses and Settlement Expenses | 4,478,494 | 5,229,716 | (571,596) |
Amortization of Deferred Policy Acquisition Costs | 0 | 0 | 0 |
Other Operating Expenses | 104,944,525 | 104,401,072 | 105,280,355 |
Title Insurance | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
Supplementary Insurance Information, Deferred Policy Acquisition Costs | 0 | 0 | 0 |
Future Policy Benefits, Losses, Claims and Loss Expenses | 37,788,000 | 36,677,000 | 35,360,000 |
Unearned Premiums | 0 | 0 | 0 |
Other Policy Claims and Benefits Payable | 341,191 | 236,401 | 389,807 |
Premium Revenue | 112,475,686 | 109,963,556 | 113,886,266 |
Net Investment Income | 3,957,187 | 3,741,873 | 3,505,770 |
Benefits, Claims. Losses and Settlement Expenses | 4,478,494 | 5,229,716 | (571,596) |
Amortization of Deferred Policy Acquisition Costs | 0 | 0 | 0 |
Other Operating Expenses | 98,417,207 | 98,620,374 | 99,093,515 |
All Other | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
Supplementary Insurance Information, Deferred Policy Acquisition Costs | 0 | 0 | 0 |
Future Policy Benefits, Losses, Claims and Loss Expenses | 0 | 0 | 0 |
Unearned Premiums | 0 | 0 | 0 |
Other Policy Claims and Benefits Payable | 0 | 0 | 0 |
Premium Revenue | 0 | 0 | 0 |
Net Investment Income | 574,132 | 517,628 | 388,838 |
Benefits, Claims. Losses and Settlement Expenses | 0 | 0 | 0 |
Amortization of Deferred Policy Acquisition Costs | 0 | 0 | 0 |
Other Operating Expenses | $ 6,527,318 | $ 5,780,698 | $ 6,186,840 |
Schedule IV (Details)
Schedule IV (Details) - Title Insurance - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||
Direct Premiums Earned | $ 112,656,750 | $ 110,065,581 | $ 114,091,457 |
Ceded Premiums Earned | 214,667 | 140,017 | 211,482 |
Assumed Premiums Earned | 33,603 | 37,992 | 6,291 |
Net Amount | $ 112,475,686 | $ 109,963,556 | $ 113,886,266 |
Premiums, Percentage Assumed to Net | 0.03% | 0.03% | 0.01% |
Schedule V (Details)
Schedule V (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Valuation Provision | ||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
Balance at Beginning of Period | $ 3,022,731 | $ 2,620,903 | $ 1,902,581 | |
Additions Charged to Costs and Expenses | 6,267,911 | 6,287,694 | 7,536,381 | |
Additions Charge to Other Accounts - Describe | 0 | 0 | 0 | |
Deductions - Describe | [1] | (5,737,863) | (5,885,866) | (6,818,059) |
Balance at End of Period | 3,552,779 | 3,022,731 | 2,620,903 | |
Reserves for Claims | ||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
Balance at Beginning of Period | 36,677,000 | 35,360,000 | 39,078,000 | |
Additions Charged to Costs and Expenses | 4,478,494 | 5,229,716 | (571,596) | |
Additions Charge to Other Accounts - Describe | 0 | 0 | 0 | |
Deductions - Describe | [2] | (3,367,494) | (3,912,716) | (3,146,404) |
Balance at End of Period | $ 37,788,000 | $ 36,677,000 | $ 35,360,000 | |
[1] | Canceled premiums | |||
[2] | Payments of claims, net of recoveries |