Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2018 | May 08, 2018 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | HALLMARK FINANCIAL SERVICES INC | |
Entity Central Index Key | 819,913 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Trading Symbol | hall | |
Entity Common Stock, Shares Outstanding | 18,055,556 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2018 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2,018 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
ASSETS | ||
Debt securities, available-for-sale, at fair value (cost: $595,481 in 2018 and $604,999 in 2017) | $ 595,846 | $ 605,746 |
Equity securities (cost: $35,762 in 2018 and $30,253 in 2017) | 52,815 | 51,763 |
Other investments (cost, $3,763 in 2018 and 2017) | 3,461 | 3,824 |
Total investments | 652,122 | 661,333 |
Cash and cash equivalents | 55,110 | 64,982 |
Restricted cash | 2,564 | 2,651 |
Ceded unearned premiums | 112,765 | 112,323 |
Premiums receivable | 108,487 | 104,373 |
Accounts receivable | 1,809 | 1,513 |
Receivable for securities | 1,218 | 5,235 |
Reinsurance recoverable | 214,369 | 182,928 |
Deferred policy acquisition costs | 15,994 | 16,002 |
Goodwill | 44,695 | 44,695 |
Intangible assets, net | 9,407 | 10,023 |
Deferred federal income taxes, net | 3,158 | 1,937 |
Federal income tax recoverable | 6,134 | 7,532 |
Prepaid expenses | 3,333 | 1,743 |
Other assets | 13,080 | 13,856 |
Total assets | 1,244,245 | 1,231,126 |
LIABILITIES | ||
Revolving credit facility payable | 30,000 | 30,000 |
Subordinated debt securities (less unamortized debt issuance cost of $937 in 2018 and $949 in 2017) | 55,765 | 55,753 |
Reserves for unpaid losses and loss adjustment expenses | 529,684 | 527,100 |
Unearned premiums | 276,570 | 276,642 |
Reinsurance balances payable | 55,998 | 52,487 |
Pension liability | 1,538 | 1,605 |
Payable for securities | 10,848 | 7,488 |
Accounts payable and other accrued expenses | 32,689 | 28,933 |
Total liabilities | 993,092 | 980,008 |
Commitments and Contingencies (Note 16) | ||
Stockholders' equity: | ||
Common stock, $.18 par value, authorized 33,333,333; issued 20,872,831 shares in 2018 and 2017 | 3,757 | 3,757 |
Additional paid-in capital | 123,224 | 123,180 |
Retained earnings | 151,495 | 136,474 |
Accumulated other comprehensive income | (2,419) | 12,234 |
Treasury stock (2,714,902 shares in 2017 and 2,260,849 in 2016), at cost | (24,904) | (24,527) |
Total stockholders' equity | 251,153 | 251,118 |
Liabilities and equity, total | $ 1,244,245 | $ 1,231,126 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Consolidated Balance Sheets [Abstract] | ||
Debt securities, available-for-sale, cost (in dollars) | $ 595,481 | $ 604,999 |
Equity securities, available for sale, cost (in dollars) | 35,762 | 30,253 |
Other investments, cost | 3,763 | 3,763 |
Subordinated debt securities, unamortized debt issuance cost (in dollars) | $ 937 | $ 949 |
Common stock, par value (in dollars per share) | $ 0.18 | $ 0.18 |
Common stock, authorized shares | 33,333,333 | 33,333,333 |
Common stock, issued shares | 20,872,831 | 20,872,831 |
Treasury stock, shares | 2,745,115 | 2,703,803 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Consolidated Statements of Operations [Abstract] | ||
Gross premiums written | $ 153,505 | $ 135,112 |
Ceded premiums written | (62,072) | (46,593) |
Net premiums written | 91,433 | 88,519 |
Change in unearned premiums | 514 | 704 |
Net premiums earned | 91,947 | 89,223 |
Investment income, net of expenses | 4,440 | 4,479 |
Investment (losses) gains, net | (4,835) | 2,060 |
Finance charges | 1,040 | 1,053 |
Commission and fees | 703 | 72 |
Other income | 46 | 61 |
Total revenues | 93,341 | 96,948 |
Losses and loss adjustment expenses | 63,675 | 61,842 |
Other operating expenses | 27,213 | 27,495 |
Interest expense | 1,027 | 1,156 |
Amortization of intangible assets | 617 | 617 |
Total expenses | 92,532 | 91,110 |
(Loss) income before tax | 809 | 5,838 |
Income tax expense | 162 | 1,852 |
Net (loss) income | $ 647 | $ 3,986 |
Net (loss) income per share: | ||
Basic | $ 0.04 | $ 0.21 |
Diluted | $ 0.04 | $ 0.21 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Consolidated Statements of Comprehensive Income [Abstract] | ||
Net (loss) income | $ 647 | $ 3,986 |
Other comprehensive income: | ||
Change in net actuarial gain | 27 | 35 |
Tax effect on change in net actuarial gain | (6) | (12) |
Unrealized holding gains arising during the period | (395) | 5,246 |
Tax effect on unrealized holding gains arising during the period | 83 | (1,836) |
Reclassification adjustment for (gains) losses included in net income | 15 | (2,501) |
Tax effect on reclassification adjustment for losses (gains) included in net income | (3) | 875 |
Other comprehensive (loss) income, net of tax | (279) | 1,807 |
Comprehensive (loss) income | $ 368 | $ 5,793 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-In Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income [Member] | Treasury Stock [Member] | Total |
Balance at Dec. 31, 2016 | $ 3,757 | $ 123,166 | $ 148,027 | $ 10,371 | $ (19,585) | |
Acquisition of treasury stock | (563) | |||||
Shares issued under employee benefit plans | 43 | $ (10) | ||||
Equity based compensation | 27 | |||||
Net (loss) income | 3,986 | 3,986 | ||||
Additional minimum pension liability, net of tax | 23 | |||||
Unrealized holding gains arising during period, net of tax | 3,410 | |||||
Reclassification adjustment for losses (gains) included in net income, net of tax | (1,626) | |||||
Balance at Mar. 31, 2017 | 3,757 | 123,183 | 152,013 | 12,178 | (20,105) | 271,026 |
Balance at Dec. 31, 2017 | 3,757 | 123,180 | 136,474 | 12,234 | (24,527) | 251,118 |
Acquisition of treasury stock | (377) | |||||
Reclassification of certain tax effects from accumulated other comprehensive income | (2,619) | 2,619 | ||||
Equity based compensation | 44 | |||||
Net (loss) income | 647 | 647 | ||||
Additional minimum pension liability, net of tax | 21 | |||||
Unrealized holding gains arising during period, net of tax | (312) | |||||
Reclassification adjustment for losses (gains) included in net income, net of tax | 12 | |||||
Balance at Mar. 31, 2018 | $ 3,757 | $ 123,224 | 151,495 | (2,419) | $ (24,904) | $ 251,153 |
Cumulative effect of adoption of updated accounting guidance for equity financial instruments at January 1, 2018 | $ 16,993 | $ (16,993) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Cash flows from operating activities: | ||
Net income | $ 647 | $ 3,986 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization expense | 1,238 | 1,100 |
Deferred federal income taxes | (1,146) | (183) |
Net realized (gains) losses | 4,835 | (2,060) |
Share-based payments expense | 44 | 27 |
Change in ceded unearned premiums | (442) | (876) |
Change in premiums receivable | (4,114) | (4,781) |
Change in accounts receivable | (296) | 561 |
Change in deferred policy acquisition costs | 8 | 99 |
Change in unpaid losses and loss adjustment expenses | 2,584 | 5,404 |
Change in unearned premiums | (72) | 173 |
Change in reinsurance recoverable | (31,441) | (767) |
Change in reinsurance balances payable | 3,511 | 5,250 |
Change in current federal income tax recoverable | 1,398 | 1,996 |
Change in all other liabilities | 3,701 | (173) |
Change in all other assets | 330 | (917) |
Net cash provided by operating activities | (19,215) | 8,839 |
Cash flows from investing activities: | ||
Purchases of property and equipment | (570) | (712) |
Purchases of investment securities | (38,619) | (48,523) |
Maturities, sales and redemptions of investment securities | 48,822 | 39,772 |
Net cash used in investing activities | 9,633 | (9,463) |
Cash flows from financing activities: | ||
Proceeds from exercise of employee stock options | 33 | |
Purchase of treasury shares | (377) | (563) |
Net cash used in financing activities | (377) | (530) |
Increase (decrease) in cash and cash equivalents | (9,959) | (1,154) |
Cash, cash equivalents and restricted cash at beginning of period | 67,633 | 86,959 |
Cash, cash equivalents and restricted cash at end of period | $ 57,674 | $ 85,805 |
General
General | 3 Months Ended |
Mar. 31, 2018 | |
General [Abstract] | |
General | 1. General Hallmark Financial Services, Inc. (“Hallmark” and, together with subsidiaries, “we,” “us” or “our”) is an insurance holding company engaged in the sale of property/casualty insurance products to businesses and individuals. Our business involves marketing, distributing, underwriting and servicing our insurance products, as well as providing other insurance related services. We pursue our business activities primarily through subsidiaries whose operations are organized into product-specific operating units that are supported by our insurance company subsidiaries. Our Contract Binding operating unit offers commercial insurance products and services in the excess and surplus lines market. Our Specialty Commercial operating unit offers general aviation and satellite launch insurance products and services, low and middle market commercial umbrella and primary/excess liability insurance, medical and financial professional liability insurance products and services, and primary/excess commercial property coverages for both catastrophe and non-catastrophe exposures. Our Standard Commercial P&C operating unit offers industry-specific commercial insurance products and services in the standard market. Our Workers Compensation operating unit specializes in small and middle market workers compensation business. Effective July 1, 2015, this operating unit no longer markets or retains any risk on new or renewal policies. Our Specialty Personal Lines operating unit offers non-standard personal automobile and renters insurance products and services. Our insurance company subsidiaries supporting these operating units are American Hallmark Insurance Company of Texas (“AHIC”), Hallmark Insurance Company (“HIC”), Hallmark Specialty Insurance Company (“HSIC”), Hallmark County Mutual Insurance Company, Hallmark National Insurance Company and Texas Builders Insurance Company. These operating units are segregated into three reportable industry segments for financial accounting purposes. The Specialty Commercial Segment includes our Contract Binding operating unit and our Specialty Commercial operating unit. The Standard Commercial Segment includes our Standard Commercial P&C operating unit and our Workers Compensation operating unit. The Personal Segment consists solely of our Specialty Personal Lines operating unit. |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2018 | |
Basis of Presentation [Abstract] | |
Basis of Presentation | 2. Basis of Presentation Our unaudited consolidated financial statements included herein have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and include our accounts and the accounts of our subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial reporting. These unaudited consolidated financial statements should be read in conjunction with our audited consolidated financial statements for the year ended December 31, 2017 included in our Annual Report on Form 10-K filed with the SEC. The interim financial data as of March 31, 2018 and 2017 is unaudited. However, in the opinion of management, the interim data includes all adjustments, consisting of normal recurring adjustments, necessary for a fair statement of the results for the interim periods. The results of operations for the period ended March 31, 2018 are not necessarily indicative of the operating results to be expected for the full year. Reclassifications Certain prior year amounts have been reclassified to conform with current year presentation. Income Taxes We file a consolidated federal income tax return. Deferred federal income taxes reflect the future tax consequences of differences between the tax basis of assets and liabilities and their financial reporting amounts at each year end. Deferred taxes are recognized using the liability method, whereby tax rates are applied to cumulative temporary differences based on when and how they are expected to affect the tax return. Deferred tax assets and liabilities are adjusted for tax rate changes in effect for the year in which these temporary differences are expected to be recovered or settled. Use of Estimates in the Preparation of the Financial Statements Our preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect our reported amounts of assets and liabilities and our disclosure of contingent assets and liabilities at the date of our consolidated financial statements, as well as our reported amounts of revenues and expenses during the reporting period. Refer to “Critical Accounting Estimates and Judgments” under Item 7 of our Annual Report on Form 10-K for the year ended December 31, 2017 for information on accounting policies that we consider critical in preparing our consolidated financial statements. Actual results could differ materially from those estimates. Fair Value of Financial Instruments Fair value estimates are made at a point in time based on relevant market data as well as the best information available about the financial instruments. Fair value estimates for financial instruments for which no or limited observable market data is available are based on judgments regarding current economic conditions, credit and interest rate risk. These estimates involve significant uncertainties and judgments and cannot be determined with precision. As a result, such calculated fair value estimates may not be realizable in a current sale or immediate settlement of the instrument. In addition, changes in the underlying assumptions used in the fair value measurement technique, including discount rate and estimates of future cash flows, could significantly affect these fair value estimates. Cash and Cash Equivalents : The carrying amounts reported in the balance sheet for these instruments approximate their fair values. Restricted Cash : The carrying amount for restricted cash reported in the balance sheet approximates the fair value. Revolving Credit Facility Payable : A revolving credit facility with Frost Bank had a carried value of $30.0 million and a fair value of $30.2 million as of March 31, 2018 . The fair value is based on discounted cash flows using a discount rate derived from LIBOR spot rates plus a market spread resulting in discount rates ranging between 4.4 % to 4.8 % for each future payment date. This revolving credit facility would be included in Level 3 of the fair value hierarchy if it was reported at fair value. Subordinated Debt Securities : Our trust preferred securities have a carried value of $55.8 million and a fair value of $ 45.5 million as of March 31, 2018. The fair value of our trust preferred securities is based on discounted cash flows using a current yield to maturity of 8.0% , which is based on similar issues to discount future cash flows. Our trust preferred securities would be included in Level 3 of the fair value hierarchy if they were reported at fair value. For reinsurance balances, premiums receivable, federal income tax recoverable, other assets and other liabilities, the carrying amounts approximate fair value because of the short maturity of such financial instruments. Variable Interest Entities On June 21, 2005, we formed Hallmark Statutory Trust I (“Trust I”), an unconsolidated trust subsidiary, for the sole purpose of issuing $30.0 million in trust preferred securities. Trust I used the proceeds from the sale of these securities and our initial capital contribution to purchase $30.9 million of subordinated debt securities from Hallmark. The debt securities are the sole assets of Trust I, and the payments under the debt securities are the sole revenues of Trust I. On August 23, 2007, we formed Hallmark Statutory Trust II (“Trust II”), an unconsolidated trust subsidiary, for the sole purpose of issuing $25.0 million in trust preferred securities. Trust II used the proceeds from the sale of these securities and our initial capital contribution to purchase $25.8 million of subordinated debt securities from Hallmark. The debt securities are the sole assets of Trust II, and the payments under the debt securities are the sole revenues of Trust II. We evaluate on an ongoing basis our investments in Trust I and Trust II (collectively the “Trusts”) and have determined that we do not have a variable interest in the Trusts. Therefore, the Trusts are not included in our consolidated financial statements. We are also involved in the normal course of business with variable interest entities (“VIE’s”) primarily as a passive investor in mortgage-backed securities and certain collateralized corporate bank loans issued by third party VIE’s. The maximum exposure to loss with respect to these investments is the investment carrying values included in the consolidated balance sheets. Adoption of New Accounting Pronouncements In January 2017, the FASB issued ASU 2017-01, “Clarifying the Definition of a Business” (Topic 715). ASU 2017-01 is intended to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. ASU 2017-01 is effective for annual periods beginning after December 15, 2017, including interim periods within those annual periods. Effective January 1, 2018, we adopted this new guidance which did not have a material impact on our financial results or disclosures. On February 14, 2018, the FASB issued updated guidance that allows a reclassification of the stranded tax effects in accumulated other comprehensive income (AOCI) resulting from the Tax Cuts and Jobs Act of 2017 (TCJA). Current guidance requires the effect of a change in tax laws or rates on deferred tax balances to be reported in income from continuing operations in the accounting period that includes the period of enactment, even if the related income tax effects were originally charged or credited directly to AOCI. The amount of the reclassification would include the effect of the change in the U.S. federal corporate income tax rate on the gross deferred tax amounts and related valuation allowances, if any, at the date of the enactment of TCJA related to items in AOCI. The updated guidance was effective for reporting periods beginning after December 15, 2018 and is to be applied retrospectively to each period in which the effect of the TCJA related to items remaining in AOCI are recognized or at the beginning of the period of adoption. Early adoption is permitted. The Company adopted the updated guidance effective January 1, 2018 and elected to reclassify the income tax effects of the TCJA from AOCI to retained earnings as of January 1, 2018. This reclassification resulted in a decrease in retained earnings of $2.6 million as of January 1, 2018 and an increase in AOCI by the same amount. In January 2016, the FASB issued ASU 2016-01, “Recognition and Measurement of Financial Assets and Financial Liabilities” (Subtopic 825-10). ASU 2016-01 will require equity investments that are not consolidated or accounted for under the equity method of accounting to be measured at fair value with changes in fair value recognized in net income. ASU 2016-01 will also require us to assess the ability to realize our deferred tax assets (“DTAs”) related to an available-for-sale debt security in combination with our other DTAs. ASU 2016-01 was effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The adoption of this guidance resulted in the recognition of $17.0 million of net after-tax unrealized gains on equity investments as a cumulative effect adjustment that increased retained earnings as of January 1, 2018 and decreased AOCI by the same amount. The Company elected to report changes in the fair value of equity investments in investment gains and (losses) in the Consolidated Statement of Operations. At December 31, 2017, equity investments were classified as available-for-sale on the Company's balance sheet. However, upon adoption, the updated guidance eliminated the available-for-sale balance sheet classification for equity investments . In August 2016, the FASB issued ASU 2016-15, “Classification of Certain Cash Receipts and Cash Payments” (Topic 230). ASU 2016-15 will reduce diversity in practice on how eight specific cash receipts and payments are classified on the statement of cash flows. The ASU will be effective for fiscal years beginning after December 15, 2017, including interim periods within those years. Effective January 1, 2018, we adopted this new guidance which did not have a material impact on our financial results or disclosures. In November 2016, the FASB issued ASU 2016-18, “Statement of Cash Flows (Topic 230): Restricted Cash.” The purpose of ASU 2016-18 is to eliminate the diversity in classifying and presenting changes in restricted cash in the statement of cash flows. The new guidance requires restricted cash to be combined with cash and cash equivalents when reconciling the beginning and ending balances of cash on the statement of cash flows, thereby no longer requiring transactions such as transfers between restricted and unrestricted cash to be treated as a cash flow activity. Further, the new guidance requires the nature of the restrictions to be disclosed, as well as a reconciliation between the balance sheet and the statement of cash flows on how restricted and unrestricted cash are segregated. The new guidance is effective for fiscal years beginning after December 15, 2017, and interim periods within that fiscal year, with early adoption permitted. Effective January 1, 2018, we retrospectively adopted this new guidance. In May 2014, the FASB issued guidance which revises the criteria for revenue recognition. Under the guidance, the transaction price is attributed to underlying performance obligations in the contract and revenue is recognized as the entity satisfies the performance obligations and transfers control of a good or service to the customer. Incremental costs of obtaining a contract may be capitalized to the extent the entity expects to recover those costs. The guidance was effective for reporting periods beginning after December 15, 2017 and is to be applied retrospectively. Revenue from insurance contracts is excluded from the scope of this new guidance. While insurance contracts are excluded from this guidance, policy fee income, billing and other fees and fee income related to property business written as a cover-holder through a Lloyds Syndicate will be subject to this updated guidance. Effective January 1, 2018, we adopted this new guidance which did not have a material impact on our financial results or disclosures. Recently Issued Accounting Pronouncements In March 2017, the FASB issued ASU 2017-08, “Premium Amortization on Purchased Callable Securities” (Subtopic 310-20). ASU 2017-08 is intended to enhance the accounting for amortization of premiums for purchased callable debt securities. The guidance amends the amortization period for certain purchased callable debt securities held at a premium. Securities that contain explicit, noncontingent call features that are callable at fixed prices and on preset dates should shorten the amortization period for the premium to the earliest call date (and if the call option is not exercised, the effective yield is reset using the payment terms of the debt security). The standard is effective for fiscal years, and interim periods within those years, beginning after December 15, 2018, and is to be applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings. We are currently evaluating the impact that the adoption of ASU 2017-08 will have on our financial results and disclosures. In January 2017, the FASB issued ASU 2017-04, “Simplifying the Test for Goodwill Impairment” (Topic 350). ASU 2017-04 requires only a one-step quantitative impairment test, whereby a goodwill impairment loss will be measured as the excess of a reporting unit’s carrying amount over its fair value (not to exceed the total goodwill allocated to that reporting unit). It eliminates Step 2 of the current two-step goodwill impairment test, under which a goodwill impairment loss is measured by comparing the implied fair value of a reporting unit’s goodwill. The ASU is effective for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. We are currently evaluating the impact that the adoption of ASU 2017-04 will have on our financial results and disclosures. In June 2016, the FASB issued ASU 2016-13, “Measurement of Credit Losses on Financial Instruments” (Topic 326). ASU 2016-13 requires organizations to estimate credit losses on certain types of financial instruments, including receivables and available-for-sale debt securities, by introducing an approach based on expected losses. The expected loss approach will require entities to incorporate considerations of historical information, current information and reasonable and supportable forecasts. ASU 2016-13 is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. ASU 2016-13 requires a modified retrospective transition method and early adoption is permitted. We are currently evaluating the impact that the adoption of this standard will have on our financial results and disclosures, but do not anticipate that any potential impact would be material. In February 2016, the FASB issued ASU 2016-02, “Leases” (Topic 842). ASU 2016-02 requires organizations that lease assets to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases. Additionally, ASU 2016-02 modifies current guidance for lessors' accounting. ASU 2016-02 is effective for interim and annual reporting periods beginning on or after January 1, 2019, with early adoption permitted. We do not anticipate that this standard will have a material impact on our results of operations, but we anticipate an increase to the value of our assets and liabilities related to leases, with no material impact to equity. |
Fair Value
Fair Value | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value [Abstract] | |
Fair Value | 3. Fair Value ASC 820 defines fair value, establishes a consistent framework for measuring fair value and expands disclosure requirements about fair value measurements. ASC 820, among other things, requires us to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. In addition, ASC 820 precludes the use of block discounts when measuring the fair value of instruments traded in an active market, which were previously applied to large holdings of publicly traded equity securities. We determine the fair value of our financial instruments based on the fair value hierarchy established in ASC 820. In accordance with ASC 820, we utilize the following fair value hierarchy: · Level 1: quoted prices in active markets for identical assets; · Level 2: inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, inputs of identical assets for less active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the instrument; and · Level 3: inputs to the valuation methodology that are unobservable for the asset or liability. This hierarchy requires the use of observable market data when available. Under ASC 820, we determine fair value based on the price that would be received for an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. It is our policy to maximize the use of observable inputs and minimize the use of unobservable inputs when developing fair value measurements, in accordance with the fair value hierarchy described above. Fair value measurements for assets and liabilities where there exists limited or no observable market data are calculated based upon our pricing policy, the economic and competitive environment, the characteristics of the asset or liability and other factors as appropriate. These estimated fair values may not be realized upon actual sale or immediate settlement of the asset or liability. Where quoted prices are available on active exchanges for identical instruments, investment securities are classified within Level 1 of the valuation hierarchy. Level 1 investment securities include common and preferred stock and an equity warrant classified as Other Investments. Level 2 investment securities include corporate bonds, collateralized corporate bank loans, municipal bonds, U.S. Treasury securities, other obligations of the U.S. Government and mortgage-backed securities for which quoted prices are not available on active exchanges for identical instruments. We use third party pricing services to determine fair values for each Level 2 investment security in all asset classes. Since quoted prices in active markets for identical assets are not available, these prices are determined using observable market information such as quotes from less active markets and/or quoted prices of securities with similar characteristics, among other things. We have reviewed the processes used by the pricing services and have determined that they result in fair values consistent with the requirements of ASC 820 for Level 2 investment securities. We have not adjusted any prices received from third party pricing sources. There were no transfers between Level 1 and Level 2 securities. In cases where there is limited activity or less transparency around inputs to the valuation, investment securities are classified within Level 3 of the valuation hierarchy. Level 3 investments are valued based on the best available data in order to approximate fair value. This data may be internally developed and consider risk premiums that a market participant would require. Investment securities classified within Level 3 include other less liquid investment securities. The following table presents for each of the fair value hierarchy levels, our assets that are measured at fair value on a recurring basis at March 31, 2018 and December 31, 2017 (in thousands): As of March 31, 2018 Quoted Prices in Other Active Markets for Observable Unobservable Identical Assets Inputs Inputs (Level 1) (Level 2) (Level 3) Total U.S. Treasury securities and obligations of U.S. Government $ - $ 49,418 $ - $ 49,418 Corporate bonds - 255,880 305 256,185 Collateralized corporate bank loans - 138,407 - 138,407 Municipal bonds - 134,292 2,896 137,188 Mortgage-backed - 14,648 - 14,648 Total debt securities - 592,645 3,201 595,846 Total equity securities 52,194 - 621 52,815 Total other investments 3,461 - - 3,461 Total investments $ 55,655 $ 592,645 $ 3,822 $ 652,122 As of December 31, 2017 Quoted Prices in Other Active Markets for Observable Unobservable Identical Assets Inputs Inputs (Level 1) (Level 2) (Level 3) Total U.S. Treasury securities and obligations of U.S. Government $ - $ 49,947 $ - $ 49,947 Corporate bonds - 278,760 313 279,073 Collateralized corporate bank loans - 125,937 - 125,937 Municipal bonds - 131,433 2,823 134,256 Mortgage-backed - 16,533 - 16,533 Total debt securities - 602,610 3,136 605,746 Total equity securities 51,142 - 621 51,763 Total other investments 3,824 - - 3,824 Total investments $ 54,966 $ 602,610 $ 3,757 $ 661,333 Due to significant unobservable inputs into the valuation model for certain municipal bonds, one corporate bond and one equity security as of March 31, 2018 and December 31, 2017, we classified these investments as Level 3 in the fair value hierarchy. We used an income approach in order to derive an estimated fair value of the municipal bonds classified as Level 3, which included inputs such as expected holding period, benchmark swap rate, benchmark discount rate and a discount rate premium for illiquidity. The corporate bond is a convertible senior note and its fair value was estimated by the sum of the bond value using an income approach discounting the scheduled interest and principal payments and the conversion feature utilizing a binomial lattice model. We also estimated the fair value of the corporate bond utilizing an as-if converted basis into the underlying securities. The equity security classified as Level 3 in the fair value hierarchy is an investment in a non-public entity. Given the size of this investment and since there was not an observable market for the security, we estimated its fair value as the fair value on the date we acquired the investment. Significant changes in the unobservable inputs in the fair value measurement of these municipal bonds could result in a significant change in the fair value measurement. The following table summarizes the changes in fair value for all financial assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the three months ended March 31, 2018 and 2017 (in thousands): Beginning balance as of January 1, 2018 $ 3,757 Sales - Settlements - Purchases - Issuances - Total realized/unrealized gains included in net income 65 Net gains included in other comprehensive income - Transfers into Level 3 - Transfers out of Level 3 - Ending balance as of March 31, 2018 $ 3,822 Beginning balance as of January 1, 2017 $ 5,945 Sales - Settlements - Purchases 775 Issuances - Total realized/unrealized gains included in net income - Net gains included in other comprehensive income 200 Transfers into Level 3 - Transfers out of Level 3 - Ending balance as of March 31, 2017 $ 6,920 |
Investments
Investments | 3 Months Ended |
Mar. 31, 2018 | |
Investments [Abstract] | |
Investments | 4. Investments The amortized cost and estimated fair value of investments in debt and equity securities by category is as follows (in thousands): Gross Gross Amortized Unrealized Unrealized Fair As of March 31, 2018 Cost Gains Losses Value U.S. Treasury securities and obligations of U.S. Government $ 49,972 $ - $ (554) $ 49,418 Corporate bonds 257,521 557 (1,893) 256,185 Collateralized corporate bank loans 137,713 827 (133) 138,407 Municipal bonds 135,256 2,753 (821) 137,188 Mortgage-backed 15,019 28 (399) 14,648 Total debt securities 595,481 4,165 (3,800) 595,846 Total equity securities 35,762 21,238 (4,185) 52,815 Total other investments 3,763 - (302) 3,461 Total investments $ 635,006 $ 25,403 $ (8,287) $ 652,122 As of December 31, 2017 U.S. Treasury securities and obligations of U.S. Government $ 50,088 $ 7 $ (148) $ 49,947 Corporate bonds 278,611 1,204 (742) 279,073 Collateralized corporate bank loans 125,536 702 (301) 125,937 Municipal bonds 134,052 709 (505) 134,256 Mortgage-backed 16,712 37 (216) 16,533 Total debt securities 604,999 2,659 (1,912) 605,746 Total equity securities 30,253 23,014 (1,504) 51,763 Total other investments 3,763 61 - 3,824 Total investments $ 639,015 $ 25,734 $ (3,416) $ 661,333 Major categories of net investment gains (losses) on investments are summarized as follows (in thousands): Three Months Ended March 31, 2018 2017 U.S. Treasury securities and obligations of U.S. Government $ - $ - Corporate bonds (8) 130 Collateralized corporate bank loans 12 28 Municipal bonds (21) (17) Mortgage-backed 2 - Equity securities - 2,360 Other investments - - Realized (losses) gain on investments (15) 2,501 Unrealized losses on other investments (363) (441) Unrealized losses on equity investments (4,457) - Investment (losses) gains, net $ (4,835) $ 2,060 We realized gross gains on investments of $60 thousand and $2.6 million during the three months ended March 31, 2018 and 2017, respectively. We realized gross losses on investments of $75 thousand and $0.1 million for the three months ended March 31, 2018 and 2017. We had no proceeds from the sale of investment securities during the three months ended March 31, 2018. We recorded proceeds from the sale of investment securities of $7.8 million during the three months ended March 31, 2017. Realized investment gains and losses are recognized in operations on the first in-first out method. The following schedules summarize the gross unrealized losses showing the length of time that investments have been continuously in an unrealized loss position as of March 31, 2018 and December 31, 2017 (in thousands): As of March 31, 2018 12 months or less Longer than 12 months Total Unrealized Unrealized Unrealized Fair Value Losses Fair Value Losses Fair Value Losses U.S. Treasury securities and obligations of U.S. Government $ 47,418 $ (553) $ 1,999 $ (1) $ 49,417 $ (554) Corporate bonds 218,114 (1,861) 1,385 (32) 219,499 (1,893) Collateralized corporate bank loans 16,828 (43) 8,006 (90) 24,834 (133) Municipal bonds 38,925 (607) 10,232 (214) 49,157 (821) Mortgage-backed 4,760 (123) 4,952 (276) 9,712 (399) Total debt securities 326,045 (3,187) 26,574 (613) 352,619 (3,800) Total equity securities 12,444 (4,185) - - 12,444 (4,185) Total other investments 3,461 (302) - - 3,461 (302) Total investments $ 341,950 $ (7,674) $ 26,574 $ (613) $ 368,524 $ (8,287) As of December 31, 2017 12 months or less Longer than 12 months Total Unrealized Unrealized Unrealized Fair Value Losses Fair Value Losses Fair Value Losses U.S. Treasury securities and obligations of U.S. Government $ 28,825 $ (145) $ 1,997 $ (3) $ 30,822 $ (148) Corporate bonds 176,061 (736) 2,378 (6) 178,439 (742) Collateralized corporate bank loans 30,008 (280) 2,517 (21) 32,525 (301) Municipal bonds 35,200 (370) 8,917 (135) 44,117 (505) Mortgage-backed 6,419 (127) 1,415 (89) 7,834 (216) Total debt securities 276,513 (1,658) 17,224 (254) 293,737 (1,912) Total equity securities 8,375 (1,504) - - 8,375 (1,504) Total other investments - - - - - - Total investments $ 284,888 $ (3,162) $ 17,224 $ (254) $ 302,112 $ (3,416) At March 31, 2018, the gross unrealized losses more than twelve months old were attributable to 41 debt security positions. At December 31, 2017, the gross unrealized losses more than twelve months old were attributable to 25 debt security positions. We consider these losses as a temporary decline in value as they are predominately on bonds that we do not intend to sell and do not believe we will be required to sell prior to recovery of our amortized cost basis. We see no other indications that the decline in values of these securities is other-than-temporary. We complete a detailed analysis each quarter to assess whether any decline in the fair value of any fixed maturity investment below cost is deemed other-than-temporary. All fixed maturity investments with an unrealized loss are reviewed. We recognize an impairment loss when an investment's value declines below cost, adjusted for accretion, amortization and previous other-than-temporary impairments, and it is determined that the decline is other-than-temporary. We assess whether we intend to sell, or it is more likely than not that we will be required to sell, a fixed maturity investment before recovery of its amortized cost basis less any current period credit losses. For fixed maturity investments that are considered other-than-temporarily impaired and that we do not intend to sell and will not be required to sell, we separate the amount of the impairment into the amount that is credit related (credit loss component) and the amount due to all other factors. The credit loss component is recognized in earnings and is the difference between the investment’s amortized cost basis and the present value of its expected future cash flows. The remaining difference between the investment’s fair value and the present value of future expected cash flows is recognized in other comprehensive income. Details regarding the carrying value of the other investments portfolio as of March 31, 2018 and December 31, 2017 are as follows (in thousands): March 31, December 31, 2018 2017 Investment Type Equity warrant $ 3,461 $ 3,824 Total other investments $ 3,461 $ 3,824 We acquired this warrant in an active market. The warrant entitles us to buy the underlying common stock of a publicly traded company at a fixed price until the expiration date of January 19, 2021. The amortized cost and estimated fair value of debt securities at March 31, 2018 by contractual maturity are as follows. Expected maturities may differ from contractual maturities because certain borrowers may have the right to call or prepay obligations with or without penalties. Amortized Fair Cost Value (in thousands) Due in one year or less $ 130,123 $ 129,929 Due after one year through five years 276,426 277,296 Due after five years through ten years 134,924 135,509 Due after ten years 38,989 38,464 Mortgage-backed 15,019 14,648 $ 595,481 $ 595,846 |
Pledged Investments
Pledged Investments | 3 Months Ended |
Mar. 31, 2018 | |
Pledged Investments [Abstract] | |
Pledged Investments | 5 . Pledged Investments We have pledged certain of our securities for the benefit of various state insurance departments and reinsurers. These securities are included with our available-for-sale debt securities because we have the ability to trade these securities. We retain the interest earned on these securities. These securities had a carrying value of $26.2 million at both March 31, 2018 and December 31, 2017, respectively. |
Reserves for Unpaid Losses and
Reserves for Unpaid Losses and Loss Adjustment Expenses | 3 Months Ended |
Mar. 31, 2018 | |
Reserves for Unpaid Losses and Loss Adjustment Expenses [Abstract] | |
Reserves for Unpaid Losses and Loss Adjustment Expenses | 6. Reserves for Unpaid Losses and Loss Adjustment Expenses Activity in the consolidated reserves for unpaid losses and LAE is summarized as follows (in thousands): March 31, March 31, 2018 2017 Balance at January 1 $ 527,100 $ 481,567 Less reinsurance recoverable 154,612 123,237 Net balance at January 1 372,488 358,330 Incurred related to: Current year 64,205 62,331 Prior years (530) (489) Total incurred 63,675 61,842 Paid related to: Current year 13,829 12,583 Prior years 72,432 47,533 Total paid 86,261 60,116 Net balance at March 31 349,902 360,056 Plus reinsurance recoverable 179,782 126,915 Balance at March 31 $ 529,684 $ 486,971 The impact from the (favorable) unfavorable net prior years’ loss development on each reporting segment is presented below: Three Months Ended March 31, 2018 2017 Specialty Commercial Segment $ 1,012 $ 300 Standard Commercial Segment (1,053) (1,458) Personal Segment (489) 669 Corporate - - Total (favorable) unfavorable net prior year development $ (530) $ (489) The following describes the primary factors behind each segment’s prior accident year reserve development for the three months ended March 31, 2018 and 2017: Three months ended March 31, 2018: · Specialty Commercial Segment. Our Contract Binding operating unit experienced net favorable development primarily in the general liability line of business in the 2017 and 2016 accident years, partially offset by unfavorable development in the 2015 and 2014 accident years primarily in the commercial auto liability line of business. Our Specialty Commercial operating unit experienced net unfavorable development primarily in general aviation, commercial excess liability, satellite launch insurance products, primary/excess commercial property and specialty risk programs lines of business . · Standard Commercial Segment. Our Standard Commercial P&C operating unit experienced net favorable development in the 2016 and prior accident years primarily in the general liability line of business, partially offset by net unfavorable development primarily in the commercial property line of business in the 2017 accident year. · Personal Segment. Net favorable development in our Specialty Personal Lines operating unit was mostly attributable to the 2017, 2016, 2014 and 2013 accident years, partially offset by unfavorable development in the 2015 accident year and 2012 and prior accident years . Three months ended March 31, 2017: · Specialty Commercial Segment. Our Contract Binding operating unit experienced net unfavorable development primarily in the commercial auto liability line of business in the 2015 accident year and 2010 and prior accident years, partially offset by net favorable development in the 2016 and 2014 accident years . Our Specialty Commercial operating unit experienced net favorable development primarily in the general aviation, primary/excess commercial property, specialty risks programs and medical professional liability lines of business partially offset by net unfavorable development in the commercial excess liability lines of business. · Standard Commercial Segment. Our Standard Commercial P&C operating unit experienced net favorable development primarily in the general liability line of business in the 2016 and prior accident years, partially offset by net unfavorable development in the occupational accident line of business primarily in the 2015 and prior accident years. · Personal Segment. Our Specialty Personal Lines operating unit experienced net unfavorable development primarily attributable to the 2016, 2014, 2013, 2012 and 2010 and prior accident years, partially offset by net favorable development in the 2015 and 2011 accident years . |
Share-Based Payment Arrangement
Share-Based Payment Arrangements | 3 Months Ended |
Mar. 31, 2018 | |
Share-Based Payment Arrangements [Abstract] | |
Share-Based Payment Arrangements | 7. Share-Based Payment Arrangements Our 2005 Long Term Incentive Plan (“2005 LTIP”) is a stock compensation plan for key employees and non-employee directors that was initially approved by the shareholders on May 26, 2005 and expired by its terms on May 27, 2015. As of March 31, 2018, there were outstanding incentive stock options to purchase 127,574 shares of our common stock, non-qualified stock options to purchase 259,157 shares of our common stock. The exercise price of all such outstanding stock options is equal to the fair market value of our common stock on the date of grant. Our 2015 Long Term Incentive Plan (“2015 LTIP”) was approved by shareholders on May 29, 2015. There are 2,000,000 shares authorized for issuance under the 2015 LTIP. As of March 31, 2018, restricted stock units representing the right to receive up to 324,440 shares of our common stock were outstanding under the 2015 LTIP. There were no stock option awards granted under the 2015 LTIP as of March 31, 2018. Stock Options: Incentive stock options granted under the 2005 LTIP prior to 2009 vest 10% , 20% , 30% and 40% on the first, second, third and fourth anniversary dates of the grant, respectively, and terminate five to ten years from the date of grant. Incentive stock options granted in 2009 vest in equal annual increments on each of the first seven anniversary dates and terminate ten years from the date of grant. One grant of 25,000 incentive stock options in 2010 vests in equal annual increments on each of the first three anniversary dates and terminates ten years from the date of grant. Non-qualified stock options granted under the 2005 LTIP generally vest 100% six months after the date of grant and terminate ten years from the date of grant. One grant of 200,000 non-qualified stock options in 2009 vests in equal annual increments on each of the first seven anniversary dates and terminates ten years from the date of grant. A summary of the status of our stock options as of March 31, 2018 and changes during the three months then ended is presented below: Average Weighted Remaining Aggregate Average Contractual Intrinsic Number of Exercise Term Value Shares Price (Years) ($000) Outstanding at January 1, 2018 406,731 $ 7.85 Granted - $ - Exercised - $ - Forfeited or expired (20,000) $ 11.46 Outstanding at March 31, 2018 386,731 $ 7.66 1.0 $ 669 Exercisable at March 31, 2018 386,731 $ 7.66 1.0 $ 669 The following table details the intrinsic value of options exercised, total cost of share-based payments charged against income before income tax benefit and the amount of related income tax benefit recognized in income for the periods indicated (in thousands): Three Months Ended March 31, 2018 2017 Intrinsic value of options exercised $ - $ 21 Cost of share-based payments (non-cash) $ - $ - Income tax benefit of share-based payments recognized in income $ - $ - As of March 31, 2018, there was no unrecognized compensation cost related to non-vested stock options granted under our plans which is expected to be recognized in the future. The fair value of each stock option granted is estimated on the date of grant using the Black-Scholes option pricing model. Expected volatilities are based on the historical volatility of Hallmark’s and similar companies’ common stock for a period equal to the expected term. The risk-free interest rates for periods within the contractual term of the options are based on rates for U.S. Treasury Notes with maturity dates corresponding to the options expected lives on the dates of grant. Expected term is determined based on the simplified method as we do not have sufficient historical exercise data to provide a basis for estimating the expected term. There were no stock options granted during the first three months of 2018 or 2017. Restricted Stock Units: Restricted stock units awarded under the 2015 LTIP represent the right to receive shares of common stock upon the satisfaction of vesting requirements, performance criteria and other terms and conditions. Restricted stock units vest and, if performance criteria have been satisfied, shares of common stock become issuable on March 31 of the third calendar year following the year of grant. The performance criteria for all restricted stock units require that we achieve certain compound average annual growth rates in book value per share as well as certain average combined ratio percentages over the vesting period in order to receive shares of common stock in amounts ranging from 50% to 150% of the number of restricted stock units granted. Grantees of restricted stock units do not have any rights of a stockholder, and do not participate in any distributions to our common stockholders, until the award fully vests upon satisfaction of the vesting schedule, performance criteria and other conditions set forth in their award agreement. Therefore, unvested restricted stock units are not considered participating securities under ASC 260, “Earnings Per Share,” and are not included in the calculation of basic or diluted earnings per share. Compensation cost is measured as an amount equal to the fair value of the restricted stock units on the date of grant and is expensed over the vesting period if achievement of the performance criteria is deemed probable, with the amount of the expense recognized based on our best estimate of the ultimate achievement level. The grant date fair value of restricted stock units granted in 2015, 2016 and 2017 was $11.10 , $11.41 and $10.20 per unit, respectively. We incurred compensation expense of $44 thousand and $27 thousand related to restricted stock units during the three months ended March 31, 2018 and 2017, respectively. We recorded income tax benefit of $9 thousand related to restricted stock units during both the three months ended March 31, 2018 and 2017, respectively A summary of the status of our restricted stock units as of March 31, 2018 and 2017 and changes during the three months then ended is presented below: Number of Restricted Stock Units 2018 2017 Non-vested at January 1 385,779 296,574 Granted - - Vested (8,198) (5,998) Forfeited (161,288) (43,509) Non-vested at March 31 216,293 247,067 As of March 31, 2018, there was $1.4 million of unrecognized grant date compensation cost related to unvested restricted stock units. Based on the current performance estimate, we expect to recognize $0.4 million of compensation cost related to unvested restricted stock units, of which $0.1 million is expected to be recognized during the remainder of 2018, $0.2 million is expected to be recognized in 2019 and $0.1 million is expected to be recognized in 2020. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2018 | |
Segment Information [Abstract] | |
Segment Information | 8. Segment Information The following is business segment information for the three months ended March 31, 2018 and 2017 (in thousands): Three Months Ended March 31, 2018 2017 Revenues: Specialty Commercial Segment $ 73,124 $ 65,835 Standard Commercial Segment 18,875 17,726 Personal Segment 7,620 11,863 Corporate (6,278) 1,524 Consolidated $ 93,341 $ 96,948 Pre-tax income (loss): Specialty Commercial Segment $ 9,758 $ 8,098 Standard Commercial Segment 1,319 851 Personal Segment (22) (758) Corporate (10,246) (2,353) Consolidated $ 809 $ 5,838 The following is additional business segment information as of the dates indicated (in thousands): March 31, December 31, 2018 2017 Assets Specialty Commercial Segment $ 822,082 $ 810,133 Standard Commercial Segment 163,157 162,152 Personal Segment 231,242 232,441 Corporate 27,764 26,400 $ 1,244,245 $ 1,231,126 |
Reinsurance
Reinsurance | 3 Months Ended |
Mar. 31, 2018 | |
Reinsurance [Abstract] | |
Reinsurance | 9. Reinsurance We reinsure a portion of the risk we underwrite in order to control the exposure to losses and to protect capital resources. We cede to reinsurers a portion of these risks and pay premiums based upon the risk and exposure of the policies subject to such reinsurance. Ceded reinsurance involves credit risk and is generally subject to aggregate loss limits. Although the reinsurer is liable to us to the extent of the reinsurance ceded, we are ultimately liable as the direct insurer on all risks reinsured. Reinsurance recoverables are reported after allowances for uncollectible amounts. We monitor the financial condition of reinsurers on an ongoing basis and review our reinsurance arrangements periodically. Reinsurers are selected based on their financial condition, business practices and the price of their product offerings. In order to mitigate credit risk to reinsurance companies, most of our reinsurance recoverable balance as of March 31, 2018 was with reinsurers that had an A.M. Best rating of “A–” or better. The following table shows earned premiums ceded and reinsurance loss recoveries by period (in thousands): Three Months Ended March 31, 2018 2017 Ceded earned premiums $ 61,629 $ 45,717 Reinsurance recoveries $ 49,438 $ 26,701 |
Revolving Credit Facility
Revolving Credit Facility | 3 Months Ended |
Mar. 31, 2018 | |
Revolving Credit Facility [Abstract] | |
Revolving Credit Facility | 10. Revolving Credit Facility Our Second Restated Credit Agreement with Frost Bank (“Frost”) dated June 30, 2015, reinstated the credit facility with Frost which expired by its terms on April 30, 2015. The Second Restated Credit Agreement also amended certain provisions of the credit facility and restated the agreement with Frost in its entirety. The Second Restated Credit Agreement provides a $15.0 million revolving credit facility (“Facility A”), with a $5.0 million letter of credit sub-facility. The outstanding balance of the Facility A bears interest at a rate equal to the prime rate or LIBOR plus 2.5% , at our election. We pay an annual fee of 0.25% of the average daily unused balance of Facility A and letter of credit fees at the rate of 1.00% per annum. As of March 31, 2018, we had no outstanding borrowings under Facility A. On December 17, 2015, we entered into a First Amendment to Second Restated Credit Agreement and a Revolving Facility B Agreement (the “Facility B Agreement”) with Frost to provide a new $30.0 million revolving credit facility (“Facility B”), in addition to Facility A. On November 1, 2016, we amended the Facility B Agreement with Frost to extend by one year the termination date for draws under Facility B and the maturity date for amounts outstanding thereunder. We paid Frost a commitment fee of $75,000 when Facility B was established and an additional $30,000 fee when Facility B was extended. On December 20, 2017, we entered into a Second Amendment to Second Restated Credit Agreement and a Second Amendment to Revolving Facility B Agreement with Frost. The Second Amendment to Second Restated Credit Agreement revised certain definitions in the Second Restated Credit Agreement. The Second Amendment to Revolving Facility B Agreement amended the Revolving Facility B Agreement to further extend by one year the termination date for draws thereunder and the maturity date for amounts outstanding thereunder. We paid Frost an additional $30,000 fee in connection with the latest extension of Facility B. On March 15, 2018, we entered into a Third Amendment to Second Restated Credit Agreement with Frost to further revise certain definitions. We may use Facility B loan proceeds solely for the purpose of making capital contributions to AHIC and HIC. As amended, we may borrow, repay and reborrow under Facility B until December 17, 2019, at which time all amounts outstanding under Facility B are converted to a term loan. Through December 17, 2019, we pay Frost a quarterly fee of 0.25% per annum of the average daily unused balance of Facility B. Facility B bears interest at a rate equal to the prime rate or LIBOR plus 3.00% , at our election. Until December 17, 2019, interest only on amounts from time to time outstanding under Facility B are payable quarterly. Any amounts outstanding on Facility B as of December 17, 2019 are converted to a term loan payable in quarterly installments over five years based on a seven year amortization of principal plus accrued interest. All remaining principal and accrued interest on Facility B become due and payable on December 17, 2024. As of March 31, 2018, we had $30.0 million outstanding under Facility B. The obligations under both Facility A and Facility B are secured by a security interest in the capital stock of AHIC and HIC. Both Facility A and Facility B contain covenants that, among other things, require us to maintain certain financial and operating ratios and restrict certain distributions, transactions and organizational changes. We are in compliance with or have obtained a waiver of all of these covenants. |
Subordinated Debt Securities
Subordinated Debt Securities | 3 Months Ended |
Mar. 31, 2018 | |
Subordinated Debt Securities [Abstract] | |
Subordinated Debt Securities | 11. Subordinated Debt Securities On June 21, 2005, we entered into a trust preferred securities transaction pursuant to which we issued $30.9 million aggregate principal amount of subordinated debt securities due in 2035 . To effect the transaction, we formed Trust I as a Delaware statutory trust. Trust I issued $30.0 million of preferred securities to investors and $0.9 million of common securities to us. Trust I used the proceeds from these issuances to purchase the subordinated debt securities. The interest rate on our Trust I subordinated debt securities was 7.725 % until June 15, 2015 , after which interest adjusts quarterly to the three-month LIBOR rate plus 3.25 percentage points . Trust I pays dividends on its preferred securities at the same rate. Under the terms of our Trust I subordinated debt securities, we pay interest only each quarter and the principal of the note at maturity. The subordinated debt securities are uncollaterized and do not require maintenance of minimum financial covenants. As of March 31, 2018, the principal balance of our Trust I subordinated debt was $30.9 million and the interest rate was 5.37% per annum. On August 23, 2007, we entered into a trust preferred securities transaction pursuant to which we issued $25.8 million aggregate principal amount of subordinated debt securities due in 2037 . To effect the transaction, we formed Trust II as a Delaware statutory trust. Trust II issued $25.0 million of preferred securities to investors and $0.8 million of common securities to us. Trust II used the proceeds from these issuances to purchase the subordinated debt securities. The interest rate on our Trust II subordinated debt securities was 8.28 % until September 15, 2017 , after which interest adjusts quarterly to the three-month LIBOR rate plus 2.90 percentage points. Trust II pays dividends on its preferred securities at the same rate. Under the terms of our Trust II subordinated debt securities, we pay interest only each quarter and the principal of the note at maturity. The subordinated debt securities are uncollaterized and do not require maintenance of minimum financial covenants. As of March 31, 2018, the principal balance of our Trust II subordinated debt was $25.8 million and the interest rate was 5.02% per annum. |
Deferred Policy Acquisition Cos
Deferred Policy Acquisition Costs | 3 Months Ended |
Mar. 31, 2018 | |
Deferred Policy Acquisition Costs [Abstract] | |
Deferred Policy Acquisition Costs | 12. Deferred Policy Acquisition Costs The following table shows total deferred and amortized policy acquisition cost activity by period (in thousands): Three Months Ended March 31, 2018 2017 Deferred $ (10,365) $ (11,097) Amortized 10,373 11,196 Net $ 8 $ 99 |
Earnings per Share
Earnings per Share | 3 Months Ended |
Mar. 31, 2018 | |
Earnings per Share [Abstract] | |
Earnings per Share | 13. Earnings per Share The following table sets forth basic and diluted weighted average shares outstanding for the periods indicated (in thousands): Three Months Ended March 31, 2018 2017 Weighted average shares - basic 18,166 18,613 Effect of dilutive securities 127 156 Weighted average shares - assuming dilution 18,293 18,769 For the three months ended March 31, 2018, 70,000 shares of common stock potentially issuable upon the exercise of employee stock options were excluded from the weighted average number of shares outstanding on a diluted basis because the effect of such options would be anti-dilutive. For the three months ended March 31, 2017, 262,500 shares of common stock potentially issuable upon the exercise of employee stock options were excluded from the weighted average number of shares outstanding on a diluted basis because the effect of such options would be anti-dilutive. |
Net Periodic Pension Cost
Net Periodic Pension Cost | 3 Months Ended |
Mar. 31, 2018 | |
Net Periodic Pension Cost [Abstract] | |
Net Periodic Pension Cost | 14. Net Periodic Pension Cost The following table details the net periodic pension cost incurred by period (in thousands): Three Months Ended March 31, 2018 2017 Interest cost $ 106 $ 111 Amortization of net loss 26 35 Expected return on plan assets (173) (162) Net periodic pension cost $ (41) $ (16) Contributed amount $ - $ - |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2018 | |
Income Taxes [Abstract] | |
Income Taxes | 15. Income Taxes Our effective tax rate was 20% for the first quarter of 2018 as compared to 31.7% for the same period in 2017. The decrease in the effective tax rate was due primarily to the lower statutory rate from the enactment of the TCJA on December 22, 2017. The rates varied from the statutory rate primarily due to the amount of tax exempt income in relation to pretax income. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 3 Months Ended |
Mar. 31, 2018 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Cash Flow Information | 16. Supplemental Cash Flow Information The following table provides a reconciliation of cash, cash equivalents and restricted cash reported in the consolidated balance sheet to the total of the same such amounts shown in the statement of cash flows: As of March 31, 2018 2017 Cash and cash equivalents $ 55,110 $ 82,953 Restricted cash 2,564 2,852 Total cash, cash equivalents and restricted cash shown in the statement of cash flows $ 57,674 $ 85,805 Restricted cash represents amounts required to be set aside by a contractual agreement with a third-party insurer and amounts pledged for the benefit of various state insurance departments. The following table provides supplemental cash flow information for the three months ended March 31, 2018 and 2017: Three Months Ended March 31, 2018 2017 Supplemental cash flow information: Interest paid $ 1,014 $ 1,151 Income taxes (recovered) paid $ (90) $ 39 Supplemental schedule of non-cash investing activities: Change in receivable for securities related to investment disposals that settled after the balance sheet date $ 4,017 $ 1,793 Change in payable for securities related to investment purchases that settled after the balance sheet date $ 3,360 $ (5,179) |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Income Balances | 3 Months Ended |
Mar. 31, 2018 | |
Changes in Accumulated Other Comprehensive Income Balances [Abstract] | |
Changes in Accumulated Other Comprehensive Income Balances | 18. Changes in Accumulated Other Comprehensive Income Balances The changes in accumulated other comprehensive income balances as of March 31, 2018 and 2017 were as follows (in thousands): Minimum Accumulated Other Pension Unrealized Comprehensive Liability Gains (Losses) Income Balance at December 31, 2016 $ (2,666) $ 13,037 $ 10,371 Other comprehensive income : Change in net actuarial gain 35 - 35 Tax effect on change in net actuarial gain (12) - (12) Net unrealized holding gains arising during the period - 5,246 5,246 Tax effect on unrealized gains arising during the period - (1,836) (1,836) Reclassification adjustment for realized gains included in investment gains and losses - (2,501) (2,501) Tax effect on reclassification adjustment for realized gains included in income tax expense - 875 875 Other comprehensive income, net of tax 23 1,784 1,807 Balance at March 31, 2017 $ (2,643) $ 14,821 $ 12,178 Balance at December 31, 2017 $ (2,310) $ 14,544 $ 12,234 Other comprehensive income (loss) : Change in net actuarial gain 27 - 27 Tax effect on change in net actuarial gain (6) - (6) Net unrealized holding losses arising during the period - (395) (395) Tax effect on unrealized losses arising during the period - 83 83 Reclassification adjustment for realized losses included in investment gains and losses - 15 15 Tax effect on reclassification adjustment for losses included in income tax expense - (3) (3) Other comprehensive income (loss), net of tax 21 (300) (279) Reclassification of certain tax effects from accumulated other comprehensive income at January 1, 2018 (569) 3,188 2,619 Cumulative effect of adoption of updated accounting guidance for equity financial instruments at January 1, 2018 - (16,993) (16,993) Balance at March 31, 2018 $ (2,858) $ 439 $ (2,419) |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2018 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | 17. Commitments and Contingencies We are engaged in various legal proceedings in the ordinary course of business, none of which, either individually or in the aggregate, are believed likely to have a material adverse effect on our consolidated financial position or results of operations, in the opinion of management. The various legal proceedings to which we are a party are routine in nature and incidental to our business. |
Basis of Presentation (Policy)
Basis of Presentation (Policy) | 3 Months Ended |
Mar. 31, 2018 | |
Basis of Presentation [Abstract] | |
Income Taxes | Income Taxes We file a consolidated federal income tax return. Deferred federal income taxes reflect the future tax consequences of differences between the tax basis of assets and liabilities and their financial reporting amounts at each year end. Deferred taxes are recognized using the liability method, whereby tax rates are applied to cumulative temporary differences based on when and how they are expected to affect the tax return. Deferred tax assets and liabilities are adjusted for tax rate changes in effect for the year in which these temporary differences are expected to be recovered or settled. |
Use of Estimates in the Preparation of the Financial Statements | Use of Estimates in the Preparation of the Financial Statements Our preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect our reported amounts of assets and liabilities and our disclosure of contingent assets and liabilities at the date of our consolidated financial statements, as well as our reported amounts of revenues and expenses during the reporting period. Refer to “Critical Accounting Estimates and Judgments” under Item 7 of our Annual Report on Form 10-K for the year ended December 31, 2017 for information on accounting policies that we consider critical in preparing our consolidated financial statements. Actual results could differ materially from those estimates. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Fair value estimates are made at a point in time based on relevant market data as well as the best information available about the financial instruments. Fair value estimates for financial instruments for which no or limited observable market data is available are based on judgments regarding current economic conditions, credit and interest rate risk. These estimates involve significant uncertainties and judgments and cannot be determined with precision. As a result, such calculated fair value estimates may not be realizable in a current sale or immediate settlement of the instrument. In addition, changes in the underlying assumptions used in the fair value measurement technique, including discount rate and estimates of future cash flows, could significantly affect these fair value estimates. Cash and Cash Equivalents : The carrying amounts reported in the balance sheet for these instruments approximate their fair values. Restricted Cash : The carrying amount for restricted cash reported in the balance sheet approximates the fair value. Revolving Credit Facility Payable : A revolving credit facility with Frost Bank had a carried value of $30.0 million and a fair value of $30.2 million as of March 31, 2018 . The fair value is based on discounted cash flows using a discount rate derived from LIBOR spot rates plus a market spread resulting in discount rates ranging between 4.4 % to 4.8 % for each future payment date. This revolving credit facility would be included in Level 3 of the fair value hierarchy if it was reported at fair value. Subordinated Debt Securities : Our trust preferred securities have a carried value of $55.8 million and a fair value of $ 45.5 million as of March 31, 2018. The fair value of our trust preferred securities is based on discounted cash flows using a current yield to maturity of 8.0% , which is based on similar issues to discount future cash flows. Our trust preferred securities would be included in Level 3 of the fair value hierarchy if they were reported at fair value. For reinsurance balances, premiums receivable, federal income tax recoverable, other assets and other liabilities, the carrying amounts approximate fair value because of the short maturity of such financial instruments. |
Variable Interest Entities | Variable Interest Entities On June 21, 2005, we formed Hallmark Statutory Trust I (“Trust I”), an unconsolidated trust subsidiary, for the sole purpose of issuing $30.0 million in trust preferred securities. Trust I used the proceeds from the sale of these securities and our initial capital contribution to purchase $30.9 million of subordinated debt securities from Hallmark. The debt securities are the sole assets of Trust I, and the payments under the debt securities are the sole revenues of Trust I. On August 23, 2007, we formed Hallmark Statutory Trust II (“Trust II”), an unconsolidated trust subsidiary, for the sole purpose of issuing $25.0 million in trust preferred securities. Trust II used the proceeds from the sale of these securities and our initial capital contribution to purchase $25.8 million of subordinated debt securities from Hallmark. The debt securities are the sole assets of Trust II, and the payments under the debt securities are the sole revenues of Trust II. We evaluate on an ongoing basis our investments in Trust I and Trust II (collectively the “Trusts”) and have determined that we do not have a variable interest in the Trusts. Therefore, the Trusts are not included in our consolidated financial statements. We are also involved in the normal course of business with variable interest entities (“VIE’s”) primarily as a passive investor in mortgage-backed securities and certain collateralized corporate bank loans issued by third party VIE’s. The maximum exposure to loss with respect to these investments is the investment carrying values included in the consolidated balance sheets. |
New Accounting Pronouncements | In January 2017, the FASB issued ASU 2017-01, “Clarifying the Definition of a Business” (Topic 715). ASU 2017-01 is intended to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. ASU 2017-01 is effective for annual periods beginning after December 15, 2017, including interim periods within those annual periods. Effective January 1, 2018, we adopted this new guidance which did not have a material impact on our financial results or disclosures. On February 14, 2018, the FASB issued updated guidance that allows a reclassification of the stranded tax effects in accumulated other comprehensive income (AOCI) resulting from the Tax Cuts and Jobs Act of 2017 (TCJA). Current guidance requires the effect of a change in tax laws or rates on deferred tax balances to be reported in income from continuing operations in the accounting period that includes the period of enactment, even if the related income tax effects were originally charged or credited directly to AOCI. The amount of the reclassification would include the effect of the change in the U.S. federal corporate income tax rate on the gross deferred tax amounts and related valuation allowances, if any, at the date of the enactment of TCJA related to items in AOCI. The updated guidance was effective for reporting periods beginning after December 15, 2018 and is to be applied retrospectively to each period in which the effect of the TCJA related to items remaining in AOCI are recognized or at the beginning of the period of adoption. Early adoption is permitted. The Company adopted the updated guidance effective January 1, 2018 and elected to reclassify the income tax effects of the TCJA from AOCI to retained earnings as of January 1, 2018. This reclassification resulted in a decrease in retained earnings of $2.6 million as of January 1, 2018 and an increase in AOCI by the same amount. In January 2016, the FASB issued ASU 2016-01, “Recognition and Measurement of Financial Assets and Financial Liabilities” (Subtopic 825-10). ASU 2016-01 will require equity investments that are not consolidated or accounted for under the equity method of accounting to be measured at fair value with changes in fair value recognized in net income. ASU 2016-01 will also require us to assess the ability to realize our deferred tax assets (“DTAs”) related to an available-for-sale debt security in combination with our other DTAs. ASU 2016-01 was effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The adoption of this guidance resulted in the recognition of $17.0 million of net after-tax unrealized gains on equity investments as a cumulative effect adjustment that increased retained earnings as of January 1, 2018 and decreased AOCI by the same amount. The Company elected to report changes in the fair value of equity investments in investment gains and (losses) in the Consolidated Statement of Operations. At December 31, 2017, equity investments were classified as available-for-sale on the Company's balance sheet. However, upon adoption, the updated guidance eliminated the available-for-sale balance sheet classification for equity investments . In August 2016, the FASB issued ASU 2016-15, “Classification of Certain Cash Receipts and Cash Payments” (Topic 230). ASU 2016-15 will reduce diversity in practice on how eight specific cash receipts and payments are classified on the statement of cash flows. The ASU will be effective for fiscal years beginning after December 15, 2017, including interim periods within those years. Effective January 1, 2018, we adopted this new guidance which did not have a material impact on our financial results or disclosures. In November 2016, the FASB issued ASU 2016-18, “Statement of Cash Flows (Topic 230): Restricted Cash.” The purpose of ASU 2016-18 is to eliminate the diversity in classifying and presenting changes in restricted cash in the statement of cash flows. The new guidance requires restricted cash to be combined with cash and cash equivalents when reconciling the beginning and ending balances of cash on the statement of cash flows, thereby no longer requiring transactions such as transfers between restricted and unrestricted cash to be treated as a cash flow activity. Further, the new guidance requires the nature of the restrictions to be disclosed, as well as a reconciliation between the balance sheet and the statement of cash flows on how restricted and unrestricted cash are segregated. The new guidance is effective for fiscal years beginning after December 15, 2017, and interim periods within that fiscal year, with early adoption permitted. Effective January 1, 2018, we retrospectively adopted this new guidance. In May 2014, the FASB issued guidance which revises the criteria for revenue recognition. Under the guidance, the transaction price is attributed to underlying performance obligations in the contract and revenue is recognized as the entity satisfies the performance obligations and transfers control of a good or service to the customer. Incremental costs of obtaining a contract may be capitalized to the extent the entity expects to recover those costs. The guidance was effective for reporting periods beginning after December 15, 2017 and is to be applied retrospectively. Revenue from insurance contracts is excluded from the scope of this new guidance. While insurance contracts are excluded from this guidance, policy fee income, billing and other fees and fee income related to property business written as a cover-holder through a Lloyds Syndicate will be subject to this updated guidance. Effective January 1, 2018, we adopted this new guidance which did not have a material impact on our financial results or disclosures. Recently Issued Accounting Pronouncements In March 2017, the FASB issued ASU 2017-08, “Premium Amortization on Purchased Callable Securities” (Subtopic 310-20). ASU 2017-08 is intended to enhance the accounting for amortization of premiums for purchased callable debt securities. The guidance amends the amortization period for certain purchased callable debt securities held at a premium. Securities that contain explicit, noncontingent call features that are callable at fixed prices and on preset dates should shorten the amortization period for the premium to the earliest call date (and if the call option is not exercised, the effective yield is reset using the payment terms of the debt security). The standard is effective for fiscal years, and interim periods within those years, beginning after December 15, 2018, and is to be applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings. We are currently evaluating the impact that the adoption of ASU 2017-08 will have on our financial results and disclosures. In January 2017, the FASB issued ASU 2017-04, “Simplifying the Test for Goodwill Impairment” (Topic 350). ASU 2017-04 requires only a one-step quantitative impairment test, whereby a goodwill impairment loss will be measured as the excess of a reporting unit’s carrying amount over its fair value (not to exceed the total goodwill allocated to that reporting unit). It eliminates Step 2 of the current two-step goodwill impairment test, under which a goodwill impairment loss is measured by comparing the implied fair value of a reporting unit’s goodwill. The ASU is effective for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. We are currently evaluating the impact that the adoption of ASU 2017-04 will have on our financial results and disclosures. In June 2016, the FASB issued ASU 2016-13, “Measurement of Credit Losses on Financial Instruments” (Topic 326). ASU 2016-13 requires organizations to estimate credit losses on certain types of financial instruments, including receivables and available-for-sale debt securities, by introducing an approach based on expected losses. The expected loss approach will require entities to incorporate considerations of historical information, current information and reasonable and supportable forecasts. ASU 2016-13 is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. ASU 2016-13 requires a modified retrospective transition method and early adoption is permitted. We are currently evaluating the impact that the adoption of this standard will have on our financial results and disclosures, but do not anticipate that any potential impact would be material. In February 2016, the FASB issued ASU 2016-02, “Leases” (Topic 842). ASU 2016-02 requires organizations that lease assets to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases. Additionally, ASU 2016-02 modifies current guidance for lessors' accounting. ASU 2016-02 is effective for interim and annual reporting periods beginning on or after January 1, 2019, with early adoption permitted. We do not anticipate that this standard will have a material impact on our results of operations, but we anticipate an increase to the value of our assets and liabilities related to leases, with no material impact to equity. |
Fair Value (Tables)
Fair Value (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value [Abstract] | |
Fair Value, Assets Measured on Recurring Basis | The following table presents for each of the fair value hierarchy levels, our assets that are measured at fair value on a recurring basis at March 31, 2018 and December 31, 2017 (in thousands): As of March 31, 2018 Quoted Prices in Other Active Markets for Observable Unobservable Identical Assets Inputs Inputs (Level 1) (Level 2) (Level 3) Total U.S. Treasury securities and obligations of U.S. Government $ - $ 49,418 $ - $ 49,418 Corporate bonds - 255,880 305 256,185 Collateralized corporate bank loans - 138,407 - 138,407 Municipal bonds - 134,292 2,896 137,188 Mortgage-backed - 14,648 - 14,648 Total debt securities - 592,645 3,201 595,846 Total equity securities 52,194 - 621 52,815 Total other investments 3,461 - - 3,461 Total investments $ 55,655 $ 592,645 $ 3,822 $ 652,122 As of December 31, 2017 Quoted Prices in Other Active Markets for Observable Unobservable Identical Assets Inputs Inputs (Level 1) (Level 2) (Level 3) Total U.S. Treasury securities and obligations of U.S. Government $ - $ 49,947 $ - $ 49,947 Corporate bonds - 278,760 313 279,073 Collateralized corporate bank loans - 125,937 - 125,937 Municipal bonds - 131,433 2,823 134,256 Mortgage-backed - 16,533 - 16,533 Total debt securities - 602,610 3,136 605,746 Total equity securities 51,142 - 621 51,763 Total other investments 3,824 - - 3,824 Total investments $ 54,966 $ 602,610 $ 3,757 $ 661,333 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | The following table summarizes the changes in fair value for all financial assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the three months ended March 31, 2018 and 2017 (in thousands): Beginning balance as of January 1, 2018 $ 3,757 Sales - Settlements - Purchases - Issuances - Total realized/unrealized gains included in net income 65 Net gains included in other comprehensive income - Transfers into Level 3 - Transfers out of Level 3 - Ending balance as of March 31, 2018 $ 3,822 Beginning balance as of January 1, 2017 $ 5,945 Sales - Settlements - Purchases 775 Issuances - Total realized/unrealized gains included in net income - Net gains included in other comprehensive income 200 Transfers into Level 3 - Transfers out of Level 3 - Ending balance as of March 31, 2017 $ 6,920 |
Investments (Tables)
Investments (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Investments [Abstract] | |
Amortized Cost and Estimated Fair Value of Investments in Debt and Equity Securities by Category | The amortized cost and estimated fair value of investments in debt and equity securities by category is as follows (in thousands): Gross Gross Amortized Unrealized Unrealized Fair As of March 31, 2018 Cost Gains Losses Value U.S. Treasury securities and obligations of U.S. Government $ 49,972 $ - $ (554) $ 49,418 Corporate bonds 257,521 557 (1,893) 256,185 Collateralized corporate bank loans 137,713 827 (133) 138,407 Municipal bonds 135,256 2,753 (821) 137,188 Mortgage-backed 15,019 28 (399) 14,648 Total debt securities 595,481 4,165 (3,800) 595,846 Total equity securities 35,762 21,238 (4,185) 52,815 Total other investments 3,763 - (302) 3,461 Total investments $ 635,006 $ 25,403 $ (8,287) $ 652,122 As of December 31, 2017 U.S. Treasury securities and obligations of U.S. Government $ 50,088 $ 7 $ (148) $ 49,947 Corporate bonds 278,611 1,204 (742) 279,073 Collateralized corporate bank loans 125,536 702 (301) 125,937 Municipal bonds 134,052 709 (505) 134,256 Mortgage-backed 16,712 37 (216) 16,533 Total debt securities 604,999 2,659 (1,912) 605,746 Total equity securities 30,253 23,014 (1,504) 51,763 Total other investments 3,763 61 - 3,824 Total investments $ 639,015 $ 25,734 $ (3,416) $ 661,333 |
Summary of Realized Gain (Loss) on Investments | Major categories of net investment gains (losses) on investments are summarized as follows (in thousands): Three Months Ended March 31, 2018 2017 U.S. Treasury securities and obligations of U.S. Government $ - $ - Corporate bonds (8) 130 Collateralized corporate bank loans 12 28 Municipal bonds (21) (17) Mortgage-backed 2 - Equity securities - 2,360 Other investments - - Realized (losses) gain on investments (15) 2,501 Unrealized losses on other investments (363) (441) Unrealized losses on equity investments (4,457) - Investment (losses) gains, net $ (4,835) $ 2,060 |
Summary of Gross Unrealized Losses for Investments that have been Continuously in Unrealized Loss Position | The following schedules summarize the gross unrealized losses showing the length of time that investments have been continuously in an unrealized loss position as of March 31, 2018 and December 31, 2017 (in thousands): As of March 31, 2018 12 months or less Longer than 12 months Total Unrealized Unrealized Unrealized Fair Value Losses Fair Value Losses Fair Value Losses U.S. Treasury securities and obligations of U.S. Government $ 47,418 $ (553) $ 1,999 $ (1) $ 49,417 $ (554) Corporate bonds 218,114 (1,861) 1,385 (32) 219,499 (1,893) Collateralized corporate bank loans 16,828 (43) 8,006 (90) 24,834 (133) Municipal bonds 38,925 (607) 10,232 (214) 49,157 (821) Mortgage-backed 4,760 (123) 4,952 (276) 9,712 (399) Total debt securities 326,045 (3,187) 26,574 (613) 352,619 (3,800) Total equity securities 12,444 (4,185) - - 12,444 (4,185) Total other investments 3,461 (302) - - 3,461 (302) Total investments $ 341,950 $ (7,674) $ 26,574 $ (613) $ 368,524 $ (8,287) As of December 31, 2017 12 months or less Longer than 12 months Total Unrealized Unrealized Unrealized Fair Value Losses Fair Value Losses Fair Value Losses U.S. Treasury securities and obligations of U.S. Government $ 28,825 $ (145) $ 1,997 $ (3) $ 30,822 $ (148) Corporate bonds 176,061 (736) 2,378 (6) 178,439 (742) Collateralized corporate bank loans 30,008 (280) 2,517 (21) 32,525 (301) Municipal bonds 35,200 (370) 8,917 (135) 44,117 (505) Mortgage-backed 6,419 (127) 1,415 (89) 7,834 (216) Total debt securities 276,513 (1,658) 17,224 (254) 293,737 (1,912) Total equity securities 8,375 (1,504) - - 8,375 (1,504) Total other investments - - - - - - Total investments $ 284,888 $ (3,162) $ 17,224 $ (254) $ 302,112 $ (3,416) |
Carrying Value of Other Invested Assets Portfolio | Details regarding the carrying value of the other investments portfolio as of March 31, 2018 and December 31, 2017 are as follows (in thousands): March 31, December 31, 2018 2017 Investment Type Equity warrant $ 3,461 $ 3,824 Total other investments $ 3,461 $ 3,824 |
Schedule of Amortized Cost and Estimated Fair Value of Debt Securities by Contractual Maturities | Amortized Fair Cost Value (in thousands) Due in one year or less $ 130,123 $ 129,929 Due after one year through five years 276,426 277,296 Due after five years through ten years 134,924 135,509 Due after ten years 38,989 38,464 Mortgage-backed 15,019 14,648 $ 595,481 $ 595,846 |
Reserves for Unpaid Losses an29
Reserves for Unpaid Losses and Loss Adjustment Expenses (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Reserves for Unpaid Losses and Loss Adjustment Expenses [Abstract] | |
Summary of Activity in Reserves for Unpaid Losses and LAE | Activity in the consolidated reserves for unpaid losses and LAE is summarized as follows (in thousands): March 31, March 31, 2018 2017 Balance at January 1 $ 527,100 $ 481,567 Less reinsurance recoverable 154,612 123,237 Net balance at January 1 372,488 358,330 Incurred related to: Current year 64,205 62,331 Prior years (530) (489) Total incurred 63,675 61,842 Paid related to: Current year 13,829 12,583 Prior years 72,432 47,533 Total paid 86,261 60,116 Net balance at March 31 349,902 360,056 Plus reinsurance recoverable 179,782 126,915 Balance at March 31 $ 529,684 $ 486,971 |
Impact of Net Prior Years Loss Development by Segment | The impact from the (favorable) unfavorable net prior years’ loss development on each reporting segment is presented below: Three Months Ended March 31, 2018 2017 Specialty Commercial Segment $ 1,012 $ 300 Standard Commercial Segment (1,053) (1,458) Personal Segment (489) 669 Corporate - - Total (favorable) unfavorable net prior year development $ (530) $ (489) |
Share-Based Payment Arrangeme30
Share-Based Payment Arrangements (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Share-Based Payment Arrangements [Abstract] | |
Summary of the Status of Stock Options | Average Weighted Remaining Aggregate Average Contractual Intrinsic Number of Exercise Term Value Shares Price (Years) ($000) Outstanding at January 1, 2018 406,731 $ 7.85 Granted - $ - Exercised - $ - Forfeited or expired (20,000) $ 11.46 Outstanding at March 31, 2018 386,731 $ 7.66 1.0 $ 669 Exercisable at March 31, 2018 386,731 $ 7.66 1.0 $ 669 |
Schedule of Options, Grants in Period and Grant Date Intrinsic Value | The following table details the intrinsic value of options exercised, total cost of share-based payments charged against income before income tax benefit and the amount of related income tax benefit recognized in income for the periods indicated (in thousands): Three Months Ended March 31, 2018 2017 Intrinsic value of options exercised $ - $ 21 Cost of share-based payments (non-cash) $ - $ - Income tax benefit of share-based payments recognized in income $ - $ - |
Summary of the Status of Restricted Stock Units | Number of Restricted Stock Units 2018 2017 Non-vested at January 1 385,779 296,574 Granted - - Vested (8,198) (5,998) Forfeited (161,288) (43,509) Non-vested at March 31 216,293 247,067 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Segment Information [Abstract] | |
Schedule of Business Segment Information | The following is business segment information for the three months ended March 31, 2018 and 2017 (in thousands): Three Months Ended March 31, 2018 2017 Revenues: Specialty Commercial Segment $ 73,124 $ 65,835 Standard Commercial Segment 18,875 17,726 Personal Segment 7,620 11,863 Corporate (6,278) 1,524 Consolidated $ 93,341 $ 96,948 Pre-tax income (loss): Specialty Commercial Segment $ 9,758 $ 8,098 Standard Commercial Segment 1,319 851 Personal Segment (22) (758) Corporate (10,246) (2,353) Consolidated $ 809 $ 5,838 |
Schedule of Additional Business Segment Information | The following is additional business segment information as of the dates indicated (in thousands): March 31, December 31, 2018 2017 Assets Specialty Commercial Segment $ 822,082 $ 810,133 Standard Commercial Segment 163,157 162,152 Personal Segment 231,242 232,441 Corporate 27,764 26,400 $ 1,244,245 $ 1,231,126 |
Reinsurance (Tables)
Reinsurance (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Reinsurance [Abstract] | |
Schedule of Reinsurance Ceded and Recoveries | The following table shows earned premiums ceded and reinsurance loss recoveries by period (in thousands): Three Months Ended March 31, 2018 2017 Ceded earned premiums $ 61,629 $ 45,717 Reinsurance recoveries $ 49,438 $ 26,701 |
Deferred Policy Acquisition C33
Deferred Policy Acquisition Costs (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Deferred Policy Acquisition Costs [Abstract] | |
Deferred Amortized Policy Acquisition Costs | The following table shows total deferred and amortized policy acquisition cost activity by period (in thousands): Three Months Ended March 31, 2018 2017 Deferred $ (10,365) $ (11,097) Amortized 10,373 11,196 Net $ 8 $ 99 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Earnings per Share [Abstract] | |
Schedule of Weighted Average Number of Shares Outstanding | The following table sets forth basic and diluted weighted average shares outstanding for the periods indicated (in thousands): Three Months Ended March 31, 2018 2017 Weighted average shares - basic 18,166 18,613 Effect of dilutive securities 127 156 Weighted average shares - assuming dilution 18,293 18,769 |
Net Periodic Pension Cost (Tabl
Net Periodic Pension Cost (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Net Periodic Pension Cost [Abstract] | |
Schedule of Net Benefit Costs | The following table details the net periodic pension cost incurred by period (in thousands): Three Months Ended March 31, 2018 2017 Interest cost $ 106 $ 111 Amortization of net loss 26 35 Expected return on plan assets (173) (162) Net periodic pension cost $ (41) $ (16) Contributed amount $ - $ - |
Supplemental Cash Flow Inform36
Supplemental Cash Flow Information (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Supplemental Cash Flow Information [Abstract] | |
Reconciliation of Cash in Balance Sheet to Cash Flows | The following table provides a reconciliation of cash, cash equivalents and restricted cash reported in the consolidated balance sheet to the total of the same such amounts shown in the statement of cash flows: As of March 31, 2018 2017 Cash and cash equivalents $ 55,110 $ 82,953 Restricted cash 2,564 2,852 Total cash, cash equivalents and restricted cash shown in the statement of cash flows $ 57,674 $ 85,805 |
Supplemental Cash Flow Information | The following table provides supplemental cash flow information for the three months ended March 31, 2018 and 2017: Three Months Ended March 31, 2018 2017 Supplemental cash flow information: Interest paid $ 1,014 $ 1,151 Income taxes (recovered) paid $ (90) $ 39 Supplemental schedule of non-cash investing activities: Change in receivable for securities related to investment disposals that settled after the balance sheet date $ 4,017 $ 1,793 Change in payable for securities related to investment purchases that settled after the balance sheet date $ 3,360 $ (5,179) |
Changes in Accumulated Other 37
Changes in Accumulated Other Comprehensive Income Balances (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Changes in Accumulated Other Comprehensive Income Balances [Abstract] | |
Schedule of Changes in Accumulated Other Comprehensive Income | The changes in accumulated other comprehensive income balances as of March 31, 2018 and 2017 were as follows (in thousands): Minimum Accumulated Other Pension Unrealized Comprehensive Liability Gains (Losses) Income Balance at December 31, 2016 $ (2,666) $ 13,037 $ 10,371 Other comprehensive income : Change in net actuarial gain 35 - 35 Tax effect on change in net actuarial gain (12) - (12) Net unrealized holding gains arising during the period - 5,246 5,246 Tax effect on unrealized gains arising during the period - (1,836) (1,836) Reclassification adjustment for realized gains included in investment gains and losses - (2,501) (2,501) Tax effect on reclassification adjustment for realized gains included in income tax expense - 875 875 Other comprehensive income, net of tax 23 1,784 1,807 Balance at March 31, 2017 $ (2,643) $ 14,821 $ 12,178 Balance at December 31, 2017 $ (2,310) $ 14,544 $ 12,234 Other comprehensive income (loss) : Change in net actuarial gain 27 - 27 Tax effect on change in net actuarial gain (6) - (6) Net unrealized holding losses arising during the period - (395) (395) Tax effect on unrealized losses arising during the period - 83 83 Reclassification adjustment for realized losses included in investment gains and losses - 15 15 Tax effect on reclassification adjustment for losses included in income tax expense - (3) (3) Other comprehensive income (loss), net of tax 21 (300) (279) Reclassification of certain tax effects from accumulated other comprehensive income at January 1, 2018 (569) 3,188 2,619 Cumulative effect of adoption of updated accounting guidance for equity financial instruments at January 1, 2018 - (16,993) (16,993) Balance at March 31, 2018 $ (2,858) $ 439 $ (2,419) |
General (Narrative) (Details)
General (Narrative) (Details) | 3 Months Ended |
Mar. 31, 2018segment | |
General [Abstract] | |
Number of reportable segments | 3 |
Basis of Presentation (Narrativ
Basis of Presentation (Narrative) (Details) - USD ($) | Jan. 01, 2018 | Aug. 23, 2007 | Jun. 21, 2005 | Mar. 31, 2018 |
Variable Interest Entity [Line Items] | ||||
Reclassification out of AOCI as a result of Tax Act | $ (2,600,000) | |||
Accounting Standards Update 2016-01 [Member] | ||||
Variable Interest Entity [Line Items] | ||||
Cumulative effect of new accounting principle in period of adoption | $ 17,000,000 | |||
Revolving Credit Facility [Member] | ||||
Variable Interest Entity [Line Items] | ||||
Credit facility, amount outstanding | 0 | |||
Revolving Credit Facility B [Member] | ||||
Variable Interest Entity [Line Items] | ||||
Credit facility, amount outstanding | 30,000,000 | |||
Credit facility, fair value | $ 30,200,000 | |||
Revolving Credit Facility B [Member] | Minimum [Member] | ||||
Variable Interest Entity [Line Items] | ||||
Fair value inputs, discount rate | 4.40% | |||
Revolving Credit Facility B [Member] | Maximum [Member] | ||||
Variable Interest Entity [Line Items] | ||||
Fair value inputs, discount rate | 4.80% | |||
Hallmark Statutory Trust I [Member] | ||||
Variable Interest Entity [Line Items] | ||||
Proceeds from issuance of trust preferred securities | $ 30,000,000 | |||
Hallmark Statutory Trust II [Member] | ||||
Variable Interest Entity [Line Items] | ||||
Proceeds from issuance of trust preferred securities | $ 25,000,000 | |||
Subordinated Debt [Member] | ||||
Variable Interest Entity [Line Items] | ||||
Trust preferred securities, carrying value | $ 55,800,000 | |||
Trust preferred securities, fair value | $ 45,500,000 | |||
Current yield to maturity percentage | 8.00% | |||
Subordinated Debt [Member] | Hallmark Statutory Trust I [Member] | ||||
Variable Interest Entity [Line Items] | ||||
Payments to acquire trust preferred investments | $ 30,900,000 | |||
Subordinated Debt [Member] | Hallmark Statutory Trust II [Member] | ||||
Variable Interest Entity [Line Items] | ||||
Payments to acquire trust preferred investments | $ 25,800,000 |
Fair Value (Fair Value, Assets
Fair Value (Fair Value, Assets Measured on Recurring Basis) (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total debt securities | $ 595,846 | $ 605,746 |
Total equity securities | 52,815 | 51,763 |
Total other investments | 3,461 | 3,824 |
Total debt and equity securities | 652,122 | 661,333 |
Us Treasury Securities and Obligations of U.S. Government [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total debt securities | 49,418 | 49,947 |
Corporate Bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total debt securities | 256,185 | 279,073 |
Collateralized Corporate Bank Loans [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total debt securities | 138,407 | 125,937 |
Municipal Bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total debt securities | 137,188 | 134,256 |
Mortgage Backed [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total debt securities | 14,648 | 16,533 |
Quoted Prices in Active Markets for Identical Assets, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total equity securities | 52,194 | 51,142 |
Total other investments | 3,461 | 3,824 |
Total debt and equity securities | 55,655 | 54,966 |
Other Observable Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total debt securities | 592,645 | 602,610 |
Total debt and equity securities | 592,645 | 602,610 |
Other Observable Inputs, Level 2 [Member] | Us Treasury Securities and Obligations of U.S. Government [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total debt securities | 49,418 | 49,947 |
Other Observable Inputs, Level 2 [Member] | Corporate Bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total debt securities | 255,880 | 278,760 |
Other Observable Inputs, Level 2 [Member] | Collateralized Corporate Bank Loans [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total debt securities | 138,407 | 125,937 |
Other Observable Inputs, Level 2 [Member] | Municipal Bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total debt securities | 134,292 | 131,433 |
Other Observable Inputs, Level 2 [Member] | Mortgage Backed [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total debt securities | 14,648 | 16,533 |
Unobservable Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total debt securities | 3,201 | 3,136 |
Total equity securities | 621 | 621 |
Total debt and equity securities | 3,822 | 3,757 |
Unobservable Inputs, Level 3 [Member] | Corporate Bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total debt securities | 305 | 313 |
Unobservable Inputs, Level 3 [Member] | Municipal Bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total debt securities | $ 2,896 | $ 2,823 |
Fair Value (Fair Value, Asset41
Fair Value (Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Fair Value [Abstract] | ||
Beginning balance | $ 3,757 | $ 5,945 |
Sales | ||
Purchases | 775 | |
Issuances | ||
Total realized/unrealized gains included in net income | 65 | |
Net gains included in other comprehensive income | 200 | |
Transfers into Level 3 | ||
Transfers out of Level 3 | ||
Ending balance | $ 3,822 | $ 6,920 |
Investments (Narrative) (Detail
Investments (Narrative) (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018USD ($)security | Mar. 31, 2017USD ($) | Dec. 31, 2017security | |
Gross gains on investments | $ 60 | $ 2,600 | |
Gross losses on investments | 75 | 100 | |
Proceeds from sale of investment securities | $ 0 | $ 7,800 | |
Debt Securities [Member] | |||
Number of debt security positions, greater than 12 months | security | 41 | 25 |
Investments (Amortized Cost and
Investments (Amortized Cost and Estimated Fair Value of Investments in Debt and Equity Securities by Category) (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Schedule of Investments [Line Items] | ||
Investments, Amortized Cost | $ 635,006 | $ 639,015 |
Investments, Gross Unrealized Gains | 25,403 | 25,734 |
Investments, Gross Unrealized Losses | (8,287) | (3,416) |
Investments, Fair Value | 652,122 | 661,333 |
Other Investments [Member] | ||
Schedule of Investments [Line Items] | ||
Investments, Amortized Cost | 3,763 | 3,763 |
Investments, Gross Unrealized Gains | 61 | |
Investments, Gross Unrealized Losses | (302) | |
Investments, Fair Value | 3,461 | 3,824 |
Equity Securities [Member] | ||
Schedule of Investments [Line Items] | ||
Investments, Amortized Cost | 35,762 | 30,253 |
Investments, Gross Unrealized Gains | 21,238 | 23,014 |
Investments, Gross Unrealized Losses | (4,185) | (1,504) |
Investments, Fair Value | 52,815 | 51,763 |
Debt Securities [Member] | ||
Schedule of Investments [Line Items] | ||
Investments, Amortized Cost | 595,481 | 604,999 |
Investments, Gross Unrealized Gains | 4,165 | 2,659 |
Investments, Gross Unrealized Losses | (3,800) | (1,912) |
Investments, Fair Value | 595,846 | 605,746 |
Us Treasury Securities and Obligations of U.S. Government [Member] | Debt Securities [Member] | ||
Schedule of Investments [Line Items] | ||
Investments, Amortized Cost | 49,972 | 50,088 |
Investments, Gross Unrealized Gains | 7 | |
Investments, Gross Unrealized Losses | (554) | (148) |
Investments, Fair Value | 49,418 | 49,947 |
Corporate Bonds [Member] | Debt Securities [Member] | ||
Schedule of Investments [Line Items] | ||
Investments, Amortized Cost | 257,521 | 278,611 |
Investments, Gross Unrealized Gains | 557 | 1,204 |
Investments, Gross Unrealized Losses | (1,893) | (742) |
Investments, Fair Value | 256,185 | 279,073 |
Collateralized Corporate Bank Loans [Member] | Debt Securities [Member] | ||
Schedule of Investments [Line Items] | ||
Investments, Amortized Cost | 137,713 | 125,536 |
Investments, Gross Unrealized Gains | 827 | 702 |
Investments, Gross Unrealized Losses | (133) | (301) |
Investments, Fair Value | 138,407 | 125,937 |
Municipal Bonds [Member] | Debt Securities [Member] | ||
Schedule of Investments [Line Items] | ||
Investments, Amortized Cost | 135,256 | 134,052 |
Investments, Gross Unrealized Gains | 2,753 | 709 |
Investments, Gross Unrealized Losses | (821) | (505) |
Investments, Fair Value | 137,188 | 134,256 |
Mortgage Backed [Member] | Debt Securities [Member] | ||
Schedule of Investments [Line Items] | ||
Investments, Amortized Cost | 15,019 | 16,712 |
Investments, Gross Unrealized Gains | 28 | 37 |
Investments, Gross Unrealized Losses | (399) | (216) |
Investments, Fair Value | $ 14,648 | $ 16,533 |
Investments (Summary of Realize
Investments (Summary of Realized Gain (Loss) on Investments) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Schedule of Investments [Line Items] | ||
(Loss) gain on investments | $ (15) | $ 2,501 |
Net realized (losses) gains | (4,835) | 2,060 |
Other Investments [Member] | ||
Schedule of Investments [Line Items] | ||
Unrealized losses on other investments | (363) | (441) |
Us Treasury Securities and Obligations of U.S. Government [Member] | ||
Schedule of Investments [Line Items] | ||
(Loss) gain on investments | ||
Corporate Bonds [Member] | ||
Schedule of Investments [Line Items] | ||
(Loss) gain on investments | (8) | 130 |
Collateralized Corporate Bank Loans [Member] | ||
Schedule of Investments [Line Items] | ||
(Loss) gain on investments | 12 | 28 |
Municipal Bonds [Member] | ||
Schedule of Investments [Line Items] | ||
(Loss) gain on investments | (21) | (17) |
Mortgage Backed [Member] | ||
Schedule of Investments [Line Items] | ||
(Loss) gain on investments | 2 | |
Equity Securities [Member] | ||
Schedule of Investments [Line Items] | ||
(Loss) gain on investments | $ 2,360 | |
Unrealized losses on other investments | $ (4,457) |
Investments (Summary of Gross U
Investments (Summary of Gross Unrealized Losses for Investments that have been Continuously in Unrealized Loss Position) (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Schedule of Investments [Line Items] | ||
Fair Value 12 months or less | $ 341,950 | $ 284,888 |
Unrealized Losses 12 months or less | (7,674) | (3,162) |
Fair Value Longer than 12 months | 26,574 | 17,224 |
Unrealized Losses Longer than 12 months | (613) | (254) |
Total Fair Value | 368,524 | 302,112 |
Total Unrealized Losses | (8,287) | (3,416) |
Other Investments [Member] | ||
Schedule of Investments [Line Items] | ||
Fair Value 12 months or less | 3,461 | |
Unrealized Losses 12 months or less | (302) | |
Total Fair Value | 3,461 | |
Total Unrealized Losses | (302) | |
Equity Securities [Member] | ||
Schedule of Investments [Line Items] | ||
Fair Value 12 months or less | 12,444 | 8,375 |
Unrealized Losses 12 months or less | (4,185) | (1,504) |
Total Fair Value | 12,444 | 8,375 |
Total Unrealized Losses | (4,185) | (1,504) |
Debt Securities [Member] | ||
Schedule of Investments [Line Items] | ||
Fair Value 12 months or less | 326,045 | 276,513 |
Unrealized Losses 12 months or less | (3,187) | (1,658) |
Fair Value Longer than 12 months | 26,574 | 17,224 |
Unrealized Losses Longer than 12 months | (613) | (254) |
Total Fair Value | 352,619 | 293,737 |
Total Unrealized Losses | (3,800) | (1,912) |
Us Treasury Securities and Obligations of U.S. Government [Member] | Debt Securities [Member] | ||
Schedule of Investments [Line Items] | ||
Fair Value 12 months or less | 47,418 | 28,825 |
Unrealized Losses 12 months or less | (553) | (145) |
Fair Value Longer than 12 months | 1,999 | 1,997 |
Unrealized Losses Longer than 12 months | (1) | (3) |
Total Fair Value | 49,417 | 30,822 |
Total Unrealized Losses | (554) | (148) |
Corporate Bonds [Member] | Debt Securities [Member] | ||
Schedule of Investments [Line Items] | ||
Fair Value 12 months or less | 218,114 | 176,061 |
Unrealized Losses 12 months or less | (1,861) | (736) |
Fair Value Longer than 12 months | 1,385 | 2,378 |
Unrealized Losses Longer than 12 months | (32) | (6) |
Total Fair Value | 219,499 | 178,439 |
Total Unrealized Losses | (1,893) | (742) |
Collateralized Corporate Bank Loans [Member] | Debt Securities [Member] | ||
Schedule of Investments [Line Items] | ||
Fair Value 12 months or less | 16,828 | 30,008 |
Unrealized Losses 12 months or less | (43) | (280) |
Fair Value Longer than 12 months | 8,006 | 2,517 |
Unrealized Losses Longer than 12 months | (90) | (21) |
Total Fair Value | 24,834 | 32,525 |
Total Unrealized Losses | (133) | (301) |
Municipal Bonds [Member] | Debt Securities [Member] | ||
Schedule of Investments [Line Items] | ||
Fair Value 12 months or less | 38,925 | 35,200 |
Unrealized Losses 12 months or less | (607) | (370) |
Fair Value Longer than 12 months | 10,232 | 8,917 |
Unrealized Losses Longer than 12 months | (214) | (135) |
Total Fair Value | 49,157 | 44,117 |
Total Unrealized Losses | (821) | (505) |
Mortgage Backed [Member] | Debt Securities [Member] | ||
Schedule of Investments [Line Items] | ||
Fair Value 12 months or less | 4,760 | 6,419 |
Unrealized Losses 12 months or less | (123) | (127) |
Fair Value Longer than 12 months | 4,952 | 1,415 |
Unrealized Losses Longer than 12 months | (276) | (89) |
Total Fair Value | 9,712 | 7,834 |
Total Unrealized Losses | $ (399) | $ (216) |
Investments (Carrying Value of
Investments (Carrying Value of Other Invested Assets Portfolio) (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Investments [Abstract] | ||
Equity warrant | $ 3,461 | $ 3,824 |
Total other investments | $ 3,461 | $ 3,824 |
Investments (Schedule of Amorti
Investments (Schedule of Amortized Cost and Estimated Fair Value of Debt Securities by Contractual Maturities) (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Schedule of Investments [Line Items] | ||
Due in one year or less, Amortized Cost | $ 130,123 | |
Due after one year through five years, Amortized Cost | 276,426 | |
Due after five years through ten years, Amortized Cost | 134,924 | |
Due after ten years, Amortized Cost | 38,989 | |
Debt securities, available-for-sale, cost (in dollars) | 595,481 | $ 604,999 |
Due in one year or less, Fair Value | 129,929 | |
Due after one year through five years, Fair Value | 277,296 | |
Due after five years through ten years, Fair Value | 135,509 | |
Due after ten years, Fair Value | 38,464 | |
Debt Securities, Fair Value | 595,846 | 605,746 |
Mortgage Backed [Member] | ||
Schedule of Investments [Line Items] | ||
Debt securities, available-for-sale, cost (in dollars) | 15,019 | |
Debt Securities, Fair Value | $ 14,648 | $ 16,533 |
Pledged Investments (Narrative)
Pledged Investments (Narrative) (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Pledged Investments [Abstract] | ||
Securities available-for-sale pledged, carrying value | $ 26.2 | $ 26.2 |
Reserves for Unpaid Losses an49
Reserves for Unpaid Losses and Loss Adjustment Expenses (Activity in the Reserves for Unpaid Losses and Loss Adjustment Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Reserves for Unpaid Losses and Loss Adjustment Expenses [Abstract] | ||
Balance at January 1 | $ 527,100 | $ 481,567 |
Less reinsurance recoverable | 154,612 | 123,237 |
Net balance at January 1 | 372,488 | 358,330 |
Incurred related to: | ||
Current year | 64,205 | 62,331 |
Prior years | (530) | (489) |
Total incurred | 63,675 | 61,842 |
Paid related to: | ||
Current year | 13,829 | 12,583 |
Prior years | 72,432 | 47,533 |
Total paid | 86,261 | 60,116 |
Net balance at March 31 | 529,684 | 486,971 |
Plus reinsurance recoverable | 179,782 | 126,915 |
Balance at March 31 | $ 349,902 | $ 360,056 |
Reserves for Unpaid Losses an50
Reserves for Unpaid Losses and Loss Adjustment Expenses (Causes for Prior Accident Year Reserve Development by Segment) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||
(Favorable) unfavorable net prior year development | $ (530) | $ (489) |
Standard Commercial Segment [Member] | ||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||
(Favorable) unfavorable net prior year development | (1,053) | (1,458) |
Specailty Commercial Segment [Member] | ||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||
(Favorable) unfavorable net prior year development | 1,012 | 300 |
Personal Segment [Member] | ||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||
(Favorable) unfavorable net prior year development | $ (489) | $ 669 |
Share-Based Payment Arrangeme51
Share-Based Payment Arrangements (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Income tax benefit of share-based payments recognized in income | $ 9 | $ 9 | |||
Stock options, Granted | 0 | 0 | |||
Long Term Incentive Plan 2005 [Member] | Option Issued Prior to 2009 [Member] | Share-based Compensation Award, Tranche One [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Percentage of options vested or expected to vest | 10.00% | ||||
Long Term Incentive Plan 2005 [Member] | Option Issued Prior to 2009 [Member] | Share-based Compensation Award, Tranche Two [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Percentage of options vested or expected to vest | 20.00% | ||||
Long Term Incentive Plan 2005 [Member] | Option Issued Prior to 2009 [Member] | Share-based Compensation Award, Tranche Three [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Percentage of options vested or expected to vest | 30.00% | ||||
Long Term Incentive Plan 2005 [Member] | Option Issued Prior to 2009 [Member] | Share-based Compensation Award, Tranche Four [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Percentage of options vested or expected to vest | 40.00% | ||||
Long Term Incentive Plan 2015 [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock compensation plan, number of shares authorized | 2,000,000 | ||||
Number of incentive stock options to purchase shares of common stock outstanding | 127,574 | ||||
Number of non-qualified stock options to purchase shares of common stock outstanding | 259,157 | ||||
Number of restricted stock units to receive shares of common stock | 324,440 | ||||
Other than options, grant date fair value | $ 10.20 | $ 11.41 | $ 11.10 | ||
Allocated share-based compensation expense | $ 44 | $ 27 | |||
Stock options, Granted | 0 | ||||
Incentive Stock Options 2010 [Member] | Long Term Incentive Plan 2005 [Member] | 25,000 [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Incentive stock options termination period | 10 years | ||||
Number of options vested or expected to vest | 25,000 | ||||
Share-based payment award vesting rights | vests in equal annual increments on each of the first three anniversary dates | ||||
Non Qualified Stock Options [Member] | Long Term Incentive Plan 2005 [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based compensation arrangement by share-based payment award, award vesting rights, percentage | 100.00% | ||||
Incentive stock options termination period | 10 years | ||||
Share-based payment, award vesting period | 6 months | ||||
Non Qualified Stock Options [Member] | Long Term Incentive Plan 2005 [Member] | 200,000 Grant [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Incentive stock options termination period | 10 years | ||||
Number of options vested or expected to vest | 200,000 | ||||
Share-based payment award vesting rights | vests in equal annual increments on each of the first seven anniversary dates | ||||
Restricted Stock Units (RSUs) [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Total unrecognized compensation cost related to non-vested share-based compensation arrangements | $ 400 | ||||
Compensation costs expected to be recognized during remainder of the fiscal period | 100 | ||||
Compensation costs expected to be recognized during next fiscal year | 200 | ||||
Compensation costs expected to be recognized in second future fiscal year | $ 100 | ||||
Other than options, granted | |||||
Other than options, forfeited | 161,288 | 43,509 | |||
Vested | 8,198 | 5,998 | |||
Restricted Stock Units (RSUs) [Member] | Long Term Incentive Plan 2015 [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Total unrecognized compensation cost related to non-vested share-based compensation arrangements | $ 1,400 |
Share-Based Payment Arrangeme52
Share-Based Payment Arrangements (Summary of the Status of Stock Options) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Share-Based Payment Arrangements [Abstract] | ||
Stock Options, Outstanding at January 1, 2018 | 406,731 | |
Stock options, Granted | 0 | 0 |
Stock Options, Forfeited or Expired | (20,000) | |
Stock Options, Outstanding at March 31, 2018 | 386,731 | |
Stock Options, Exercisable at March 31, 2018 | 386,731 | |
Weighted Average Exercise Price, Outstanding at January 1, 2018 | $ 7.85 | |
Weighted Average Exercise Price, Forfeited or Expired | 11.46 | |
Weighted Average Exercise Price, Outstanding at March 31, 2018 | 7.66 | |
Weighted Average Exercise Price, Exercisable at March 31, 2018 | $ 7.66 | |
Average Remaining Contractual Term, Outstanding at March 31, 2018 | 1 year | |
Average Remaining Contractual Term, Exercisable at March 31, 2018 | 1 year | |
Aggregate Intrinsic Value, Outstanding at March 31, 2018 | $ 669 | |
Aggregate Intrinsic Value, Exercisable at March 31, 2018 | $ 669 |
Share-Based Payment Arrangeme53
Share-Based Payment Arrangements (Schedule of Options, Grants in Period and Grant Date Intrinsic Value) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Cost of share-based payments (non-cash) | $ 44 | $ 27 |
Income tax benefit of share-based payments recognized in income | 9 | 9 |
Employee Stock Option [Member] | ||
Intrinsic value of options exercised | $ 21 | |
Cost of share-based payments (non-cash) | ||
Income tax benefit of share-based payments recognized in income |
Share-Based Payment Arrangeme54
Share-Based Payment Arrangements (Summary of the Status of Restricted Stock Units) (Details) - Restricted Stock Units (RSUs) [Member] - shares | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Nonvested at January 1 | 385,779 | 296,574 |
Granted | ||
Vested | (8,198) | (5,998) |
Forfeited | (161,288) | (43,509) |
Nonvested at March 31 | 216,293 | 247,067 |
Segment Information (Schedule o
Segment Information (Schedule of Business Segment Information) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Revenues [Abstract] | ||
Revenues | $ 93,341 | $ 96,948 |
Pre-tax income (loss) [Abstract] | ||
Pre-tax income (loss) | 809 | 5,838 |
Specialty Commercial Segment [Member] | ||
Revenues [Abstract] | ||
Revenues | 73,124 | 65,835 |
Pre-tax income (loss) [Abstract] | ||
Pre-tax income (loss) | 9,758 | 8,098 |
Standard Commercial Segment [Member] | ||
Revenues [Abstract] | ||
Revenues | 18,875 | 17,726 |
Pre-tax income (loss) [Abstract] | ||
Pre-tax income (loss) | 1,319 | 851 |
Personal Segment [Member] | ||
Revenues [Abstract] | ||
Revenues | 7,620 | 11,863 |
Pre-tax income (loss) [Abstract] | ||
Pre-tax income (loss) | (22) | (758) |
Corporate [Member] | ||
Revenues [Abstract] | ||
Revenues | (6,278) | 1,524 |
Pre-tax income (loss) [Abstract] | ||
Pre-tax income (loss) | $ (10,246) | $ (2,353) |
Segment Information (Schedule56
Segment Information (Schedule of Additional Business Segment Information) (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Dec. 31, 2016 |
Segment Reporting Information [Line Items] | ||||
Assets | $ 1,244,245 | $ 1,231,126 | $ 1,244,245 | $ 1,231,126 |
Specialty Commercial Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Assets | 822,082 | 810,133 | ||
Standard Commercial Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Assets | 163,157 | 162,152 | ||
Personal Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Assets | 231,242 | 232,441 | ||
Corporate [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Assets | $ 27,764 | $ 26,400 |
Reinsurance (Schedule of Reinsu
Reinsurance (Schedule of Reinsurance Ceded and Recoveries) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Reinsurance [Abstract] | ||
Ceded earned premiums | $ 61,629 | $ 45,717 |
Reinsurance recoveries | $ 49,438 | $ 26,701 |
Revolving Credit Facility (Narr
Revolving Credit Facility (Narrative) (Details) - USD ($) | Mar. 15, 2018 | Nov. 01, 2016 | Dec. 17, 2015 | Mar. 31, 2018 |
Revolving Credit Facility [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Line of credit facility, maximum borrowing capacity | $ 15,000,000 | |||
Credit facility, amount outstanding | $ 0 | |||
Line of credit facility, unused capacity, commitment fee percentage | 0.25% | |||
Revolving Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Debt instrument, basis spread on variable rate | 2.50% | |||
Revolving Credit Facility B [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Line of credit facility, maximum borrowing capacity | $ 30,000,000 | |||
Credit facility, amount outstanding | $ 30,000,000 | |||
Line of credit facility, unused capacity, commitment fee percentage | 0.25% | |||
Line of credit facility, commitment fee amount | $ 30,000 | $ 30,000 | $ 75,000 | |
Revolving Credit Facility B [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Line of credit facility, unused capacity, commitment fee percentage | 3.00% | |||
Letter of Credit [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Line of credit facility, maximum borrowing capacity | $ 5,000,000 | |||
Line of credit facility, commitment fee percentage | 1.00% |
Subordinated Debt Securities (N
Subordinated Debt Securities (Narrative) (Details) - USD ($) $ in Millions | Jun. 16, 2015 | Aug. 23, 2007 | Jun. 21, 2005 | Mar. 31, 2018 |
Trust II [Member] | ||||
Subordinated Borrowing [Line Items] | ||||
Debt instrument, interest rate, effective percentage | 5.02% | |||
Subordinated Debt Due In 2035 [Member] | Trust I [Member] | ||||
Subordinated Borrowing [Line Items] | ||||
Long-term debt, gross | $ 30.9 | $ 30.9 | ||
Proceeds from issuance of trust preferred securities | 30 | |||
Proceeds from issuance of common stock | $ 0.9 | |||
Subordinated borrowing, interest rate | 7.725% | |||
Debt instrument, interest rate fixed to floating date | Jun. 15, 2015 | |||
Debt instrument, maturity date | Jun. 15, 2035 | |||
Debt instrument, description of variable rate basis | interest adjusts quarterly to the three-month LIBOR rate plus 3.25 percentage points | |||
Debt instrument, interest rate, effective percentage | 5.37% | |||
Subordinated Debt Due In 2035 [Member] | London Interbank Offered Rate (LIBOR) [Member] | Trust I [Member] | ||||
Subordinated Borrowing [Line Items] | ||||
Debt instrument, basis spread on variable rate | 3.25% | |||
Subordinated Debt Due In 2037 [Member] | Trust II [Member] | ||||
Subordinated Borrowing [Line Items] | ||||
Long-term debt, gross | $ 25.8 | $ 25.8 | ||
Proceeds from issuance of trust preferred securities | 25 | |||
Proceeds from issuance of common stock | $ 0.8 | |||
Subordinated borrowing, interest rate | 8.28% | |||
Debt instrument, interest rate fixed to floating date | Sep. 15, 2017 | |||
Debt instrument, maturity date | Sep. 15, 2037 | |||
Debt instrument, description of variable rate basis | three-month LIBOR rate plus 2.90 percentage | |||
Subordinated Debt Due In 2037 [Member] | London Interbank Offered Rate (LIBOR) [Member] | Trust II [Member] | ||||
Subordinated Borrowing [Line Items] | ||||
Debt instrument, basis spread on variable rate | 2.90% |
Deferred Policy Acquisition C60
Deferred Policy Acquisition Costs (Deferred Amortized Policy Acquisition Costs) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Document and Entity Information [Abstract] | ||
Deferred | $ (10,365) | $ (11,097) |
Amortized | 10,373 | 11,196 |
Net | $ 8 | $ 99 |
Earnings per Share (Narrative)
Earnings per Share (Narrative) (Details) - shares | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Earnings per Share [Abstract] | ||
Antidilutive securities excluded from computation of earnings per share | 70,000 | 262,500 |
Earnings per Share (Schedule of
Earnings per Share (Schedule of Weighted Average Number of Shares Outstanding) (Details) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Earnings per Share [Abstract] | ||
Weighted average shares - basic | 18,166 | 18,613 |
Effect of dilutive securities | 127 | 156 |
Weighted average shares - assuming dilution | 18,293 | 18,769 |
Net Periodic Pension Cost (Sche
Net Periodic Pension Cost (Schedule of Net Benefit Costs) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Net Periodic Pension Cost [Abstract] | ||
Interest cost | $ 106 | $ 111 |
Amortization of net loss | 26 | 35 |
Expected return on plan assets | (173) | (162) |
Net periodic pension cost | (41) | (16) |
Contributed amount |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Income Taxes [Abstract] | ||
Effective income tax rate, continuing operations | 20.00% | 31.70% |
Supplemental Cash Flow Inform65
Supplemental Cash Flow Information (Reconciliation of Cash, Cash Equivalents and Restricted Cash to Statement of Cash Flows) (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 |
Supplemental Cash Flow Information [Abstract] | ||||
Cash and cash equivalents | $ 55,110 | $ 64,982 | $ 82,953 | |
Restricted Cash and Cash Equivalents | 2,564 | 2,651 | 2,852 | |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | $ 57,674 | $ 67,633 | $ 85,805 | $ 86,959 |
Supplemental Cash Flow Inform66
Supplemental Cash Flow Information (Supplemental Cash Flow Information) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Supplemental Cash Flow Information [Abstract] | ||
Interest Paid, Net | $ 1,014 | $ 1,151 |
Income Taxes Paid, Net | (90) | 39 |
Change In Receivable For Securities Related To Investment Disposals That Settled After Balance Sheet Date | 4,017 | 1,793 |
Change In Payable For Securities Related To Investment Purchases Settled After Balance Sheet Date | $ 3,360 | $ (5,179) |
Changes in Accumulated Other 67
Changes in Accumulated Other Comprehensive Income Balances (Schedule of Changes in Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Thousands | Jan. 01, 2018 | Mar. 31, 2018 | Mar. 31, 2017 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | $ 12,234 | $ 12,234 | |
Other comprehensive income: | |||
Change in net actuarial gain | 27 | $ 35 | |
Tax effect on change in net actuarial gain | (6) | (12) | |
Net unrealized holding gains (losses) arising during the period | (395) | 5,246 | |
Tax effect on unrealized gains arising during the period | 83 | (1,836) | |
Reclassification adjustment for gains included in net realized gains (losses) | 15 | (2,501) | |
Tax effect on reclassification adjustment for gains (losses) included in net income | (3) | 875 | |
Other comprehensive income (loss), net of tax | (279) | 1,807 | |
Reclassification of certain tax effects from accumulated other comprehensive income | (2,600) | ||
Ending Balance | (2,419) | ||
Minimum Pension Liability [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | (2,310) | (2,310) | (2,666) |
Other comprehensive income: | |||
Change in net actuarial gain | 27 | 35 | |
Tax effect on change in net actuarial gain | (6) | (12) | |
Other comprehensive income (loss), net of tax | 21 | 23 | |
Reclassification of certain tax effects from accumulated other comprehensive income | (569) | ||
Ending Balance | (2,858) | (2,643) | |
Unrealized Gain (Loss) [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | 14,544 | 14,544 | 13,037 |
Other comprehensive income: | |||
Net unrealized holding gains (losses) arising during the period | (395) | 5,246 | |
Tax effect on unrealized gains arising during the period | 83 | (1,836) | |
Reclassification adjustment for gains included in net realized gains (losses) | 15 | (2,501) | |
Tax effect on reclassification adjustment for gains (losses) included in net income | (3) | 875 | |
Other comprehensive income (loss), net of tax | (300) | 1,784 | |
Reclassification of certain tax effects from accumulated other comprehensive income | 3,188 | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | (16,993) | ||
Ending Balance | 439 | 14,821 | |
Accumulated Other Comprehensive Income [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | $ 12,234 | 12,234 | 10,371 |
Other comprehensive income: | |||
Change in net actuarial gain | 27 | 35 | |
Tax effect on change in net actuarial gain | (6) | (12) | |
Net unrealized holding gains (losses) arising during the period | (395) | 5,246 | |
Tax effect on unrealized gains arising during the period | 83 | (1,836) | |
Reclassification adjustment for gains included in net realized gains (losses) | 15 | (2,501) | |
Tax effect on reclassification adjustment for gains (losses) included in net income | (3) | 875 | |
Other comprehensive income (loss), net of tax | (279) | 1,807 | |
Reclassification of certain tax effects from accumulated other comprehensive income | 2,619 | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | (16,993) | ||
Ending Balance | $ (2,419) | $ 12,178 |