Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2019 | Aug. 09, 2019 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2019 | |
Entity Registrant Name | HALLMARK FINANCIAL SERVICES INC | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 18,123,093 | |
Entity Central Index Key | 0000819913 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2019 | |
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
ASSETS | ||
Debt securities, available-for-sale, at fair value (amortized cost; $530,516 in 2019 and $550,268 in 2018) | $ 533,148 | $ 545,870 |
Equity securities (cost; $68,709 in 2019 and $68,709 in 2018) | 94,012 | 80,896 |
Other investments (cost; $3,763 in 2019 and $3,763 in 2018) | 2,585 | 1,148 |
Total investments | 629,745 | 627,914 |
Cash and cash equivalents | 67,670 | 35,594 |
Restricted cash | 3,486 | 4,877 |
Ceded unearned premiums | 150,883 | 133,031 |
Premiums receivable | 144,674 | 119,778 |
Accounts receivable | 1,332 | 1,619 |
Receivable for securities | 2,581 | 3,369 |
Reinsurance recoverable | 300,155 | 252,029 |
Deferred policy acquisition costs | 20,308 | 14,291 |
Goodwill | 44,695 | 44,695 |
Intangible assets, net | 6,323 | 7,555 |
Deferred federal income taxes, net | 4,983 | |
Prepaid expenses | 3,282 | 2,588 |
Other assets | 30,634 | 12,571 |
Total assets | 1,405,768 | 1,264,894 |
Liabilities: | ||
Revolving credit facility payable | 30,000 | 30,000 |
Subordinated debt securities (less unamortized debt issuance cost of $872 in 2019 and $898 in 2018) | 55,830 | 55,804 |
Reserves for unpaid losses and loss adjustment expenses | 551,543 | 527,247 |
Unearned premiums | 351,630 | 298,061 |
Reinsurance balances payable | 73,977 | 67,328 |
Pension liability | 1,946 | 2,018 |
Payable for securities | 3,167 | 698 |
Federal income tax payable | 870 | 4 |
Deferred federal income taxes, net | 143 | |
Accounts payable and other accrued expenses | 47,126 | 28,202 |
Total liabilities | 1,116,232 | 1,009,362 |
Commitments and contingencies (Note 17) | ||
Stockholders' equity: | ||
Common stock, $.18 par value, authorized 33,333,333 shares; issued 20,872,831 shares in 2019 and 2018 | 3,757 | 3,757 |
Additional paid-in capital | 122,778 | 123,168 |
Retained earnings | 189,249 | 161,195 |
Accumulated other comprehensive loss | (1,047) | (6,660) |
Treasury stock (2,749,738 shares in 2019 and 2,846,131 in 2018), at cost | (25,201) | (25,928) |
Total stockholders' equity | 289,536 | 255,532 |
Total liabilities and stockholders' equity | $ 1,405,768 | $ 1,264,894 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Consolidated Balance Sheets Parenthetical [Abstract] | ||
Debt securities, available-for-sale, cost (in dollars) | $ 530,516 | $ 550,268 |
Equity securities, available for sale, cost (in dollars) | 68,709 | 68,709 |
Other investments, cost | 3,763 | 3,763 |
Subordinated debt securities, unamortized debt issuance cost (in dollars) | $ 872 | $ 898 |
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 | 2,749,738 | 2,846,131 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Consolidated Statements of Operations [Abstract] | ||||
Gross premiums written | $ 218,236 | $ 173,219 | $ 405,552 | $ 326,724 |
Ceded premiums written | (94,393) | (83,373) | (164,306) | (145,445) |
Net premiums written | 123,843 | 89,846 | 241,246 | 181,279 |
Change in unearned premiums | (17,344) | 1,132 | (35,717) | 1,646 |
Net premiums earned | 106,499 | 90,978 | 205,529 | 182,925 |
Investment income, net of expenses | 5,412 | 4,406 | 10,523 | 8,846 |
Investment gains (losses), net | 6,817 | 533 | 18,754 | (4,302) |
Finance charges | 1,797 | 1,161 | 3,531 | 2,201 |
Commission and fees | 364 | 1,032 | 657 | 1,735 |
Other income | 14 | 15 | 30 | 61 |
Total revenues | 120,903 | 98,125 | 239,024 | 191,466 |
Losses and loss adjustment expenses | 73,226 | 63,648 | 143,313 | 127,323 |
Operating expenses | 29,336 | 26,360 | 56,582 | 53,573 |
Interest expense | 1,240 | 1,128 | 2,493 | 2,155 |
Amortization of intangible assets | 617 | 617 | 1,234 | 1,234 |
Total expenses | 104,419 | 91,753 | 203,622 | 184,285 |
Income before tax | 16,484 | 6,372 | 35,402 | 7,181 |
Income tax expense | 3,455 | 1,282 | 7,348 | 1,444 |
Net income | $ 13,029 | $ 5,090 | $ 28,054 | $ 5,737 |
Net income per share: | ||||
Basic (in dollars per share) | $ 0.72 | $ 0.28 | $ 1.55 | $ 0.32 |
Diluted (in dollars per share) | $ 0.71 | $ 0.28 | $ 1.54 | $ 0.31 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Consolidated Statements of Comprehensive Income [Abstract] | ||||
Net income | $ 13,029 | $ 5,090 | $ 28,054 | $ 5,737 |
Other comprehensive income: | ||||
Change in net actuarial gain | 37 | 26 | 72 | 53 |
Tax effect on change in net actuarial gain | (8) | (5) | (15) | (11) |
Unrealized holding gains arising during the period | 3,460 | 2,321 | 11,233 | 1,926 |
Tax effect on unrealized holding gains arising during the period | (727) | (487) | (2,359) | (404) |
Reclassification adjustment for gains included in net income | (60) | (381) | (4,201) | (366) |
Tax effect on reclassification adjustment for gains included in net income | 13 | 80 | 883 | 77 |
Other comprehensive income, net of tax | 2,715 | 1,554 | 5,613 | 1,275 |
Comprehensive income | $ 15,744 | $ 6,644 | $ 33,667 | $ 7,012 |
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 (Loss) [Member] | Treasury Stock [Member] | Total |
Cumulative effect of adoption of updated accounting guidance for equity financial instruments at January 1,2018 | Accounting Standards Update 2016-01 [Member] | $ 16,993 | $ (16,993) | ||||
Reclassification of certain tax effects from accumulated other comprehensive income at January 1,2018 | (2,619) | 2,619 | ||||
Balance at Dec. 31, 2017 | $ 3,757 | $ 123,180 | 136,474 | 12,234 | $ (24,527) | |
Equity based compensation | 1 | |||||
Acquisition of treasury stock | (1,464) | |||||
Shares issued under employee benefit plans | 406 | |||||
Shares issued under employee benefit plans (value) | (164) | |||||
Net income | 5,737 | $ 5,737 | ||||
Additional minimum pension liability, net of tax | 42 | |||||
Unrealized holding gains (losses) arising during period, net of tax | 1,522 | |||||
Reclassification adjustment for (gains) losses included in net income, net of tax | (289) | |||||
Balance at Jun. 30, 2018 | 3,757 | 123,017 | 156,585 | (865) | (25,585) | 256,909 |
Balance at Mar. 31, 2018 | 3,757 | 123,224 | 151,495 | (2,419) | (24,904) | |
Equity based compensation | (43) | |||||
Acquisition of treasury stock | (1,087) | |||||
Shares issued under employee benefit plans | 406 | |||||
Shares issued under employee benefit plans (value) | (164) | |||||
Net income | 5,090 | 5,090 | ||||
Additional minimum pension liability, net of tax | 21 | |||||
Unrealized holding gains (losses) arising during period, net of tax | 1,834 | |||||
Reclassification adjustment for (gains) losses included in net income, net of tax | (301) | |||||
Balance at Jun. 30, 2018 | 3,757 | 123,017 | 156,585 | (865) | (25,585) | 256,909 |
Balance at Dec. 31, 2018 | 3,757 | 123,168 | 161,195 | (6,660) | (25,928) | 255,532 |
Equity based compensation | 197 | |||||
Acquisition of treasury stock | (1,380) | |||||
Shares issued under employee benefit plans | 2,107 | |||||
Shares issued under employee benefit plans (value) | (587) | |||||
Net income | 28,054 | 28,054 | ||||
Additional minimum pension liability, net of tax | 57 | |||||
Unrealized holding gains (losses) arising during period, net of tax | 8,874 | |||||
Reclassification adjustment for (gains) losses included in net income, net of tax | (3,318) | |||||
Balance at Jun. 30, 2019 | 3,757 | 122,778 | 189,249 | (1,047) | (25,201) | 289,536 |
Balance at Mar. 31, 2019 | 3,757 | 122,638 | 176,220 | (3,762) | (25,201) | |
Equity based compensation | 140 | |||||
Net income | 13,029 | 13,029 | ||||
Additional minimum pension liability, net of tax | 29 | |||||
Unrealized holding gains (losses) arising during period, net of tax | 2,733 | |||||
Reclassification adjustment for (gains) losses included in net income, net of tax | (47) | |||||
Balance at Jun. 30, 2019 | $ 3,757 | $ 122,778 | $ 189,249 | $ (1,047) | $ (25,201) | $ 289,536 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Cash flows from operating activities: | ||
Net income | $ 28,054 | $ 5,737 |
Adjustments to reconcile net income to cash provided by (used in) operating activities: | ||
Depreciation and amortization expense | 2,626 | 2,479 |
Deferred federal income taxes | 3,634 | (988) |
Investment (gains) losses, net | (18,754) | 4,302 |
Share-based payments expense | 197 | 1 |
Change in ceded unearned premiums | (17,852) | (15,181) |
Change in premiums receivable | (24,896) | (7,815) |
Change in accounts receivable | 287 | (538) |
Change in deferred policy acquisition costs | (6,017) | 1,944 |
Change in unpaid losses and loss adjustment expenses | 24,296 | (6,548) |
Change in unearned premiums | 53,569 | 13,535 |
Change in reinsurance recoverable | (48,126) | (32,117) |
Change in reinsurance balances payable | 6,649 | 13,072 |
Change in current federal income tax payable | 866 | 7,719 |
Change in all other liabilities | (2,708) | 2,899 |
Change in all other assets | 4,860 | 1,604 |
Net cash provided by (used in) operating activities | 6,685 | (9,895) |
Cash flows from investing activities: | ||
Purchases of property and equipment | (2,447) | (1,118) |
Purchases of investment securities | (97,292) | (97,610) |
Maturities, sales and redemptions of investment securities | 123,599 | 124,873 |
Net cash provided by investing activities | 23,860 | 26,145 |
Cash flows from financing activities: | ||
Proceeds from exercise of employee stock options | 1,520 | 242 |
Purchase of treasury shares | (1,380) | (1,464) |
Net cash provided by (used in) financing activities | 140 | (1,222) |
Increase in cash and cash equivalents and restricted cash | 30,685 | 15,028 |
Cash and cash equivalents and restricted cash at beginning of period | 40,471 | 67,633 |
Cash and cash equivalents and restricted cash at end of period | $ 71,156 | $ 82,661 |
General
General | 6 Months Ended |
Jun. 30, 2019 | |
General [Abstract] | |
General | 1. General Hallmark Financial Services, Inc. (“Hallmark” and, together with subsidiaries, “we,” “us” or “our”) is an insurance holding company that offers commercial and personal insurance that serves businesses and individuals in specialty and niche markets. We focus on marketing, distributing, underwriting and servicing property and casualty insurance products that require specialized underwriting expertise or market knowledge. We believe this approach provides us the best opportunity to achieve favorable policy terms and pricing. The insurance policies we produce are written by our six insurance company subsidiaries as well as unaffiliated insurers. We pursue our business activities primarily through subsidiaries whose operations are organized into product-specific business units that are supported by our insurance company subsidiaries. Our Commercial Auto business unit offers primary and excess commercial vehicle insurance products and services; our E&S Casualty business unit offers primary and excess liability, excess public entity liability and E&S package insurance products and services; our E&S Property business unit offers primary and excess commercial property insurance for both catastrophe and non-catastrophe exposures; our Professional Liability business unit offers healthcare and financial lines professional liability insurance products and services primarily for businesses, medical professionals, medical facilities and senior care facilities; and our Aerospace & Programs business unit offers general aviation and satellite launch property/casualty insurance products and services, as well as certain specialty programs. These products and services were previously reported as the Contract Binding and Specialty Commercial operating units. Our Commercial Accounts business unit (f/k/a Standard Commercial P&C operating unit) offers package and monoline property/casualty and occupational accident insurance products. Effective June 1, 2016 we ceased marketing new or renewal occupational accident policies. Our former Workers Compensation operating unit specialized in small and middle market workers compensation business. Effective July 1, 2015, we no longer market or retain any risk on new or renewal workers compensation policies. Our Specialty Personal Lines business unit offers non-standard personal automobile and renters insurance products and services. Our insurance company subsidiaries supporting these business 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 business units are segregated into three reportable industry segments for financial accounting purposes. The Specialty Commercial Segment includes our Commercial Auto business unit, our E&S Casualty business unit, our E&S Property business unit, our Professional Liability business unit and our Aerospace & Programs business unit. The Standard Commercial Segment includes our Commercial Accounts business unit and the run-off from our former Workers Compensation operating unit. The Personal Segment consists solely of our Specialty Personal Lines business unit. The realignment of our business units did not affect the comparability of our reportable industry segments. |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2019 | |
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, 2018 included in our Annual Report on Form 10‑K filed with the SEC. The interim financial data as of June 30, 2019 and 2018 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 periods ended June 30, 2019 are not necessarily indicative of the operating results to be expected for the full year. 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. Reclassifications Certain prior year amounts have been reclassified to conform with current year presentation. 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, 2018 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 June 30, 2019. 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 $42.6 million as of June 30, 2019. 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/payable, 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 February 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 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. The adoption of ASU 2017‑08 had no impact on our financial results and disclosures. 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 in 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. The adoption of this standard did not have a material impact on our financial condition or results of operations. In January 2016, the FASB issued ASU 2016‑01, “Recognition and Measurement of Financial Assets and Financial Liabilities” (Subtopic 825‑10). ASU 2016‑01 requires 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 also requires 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 (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 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. During 2018, the FASB issued several amendments and targeted improvements to ease the application of the standard, including the addition of a transition approach that gives the Company the option of applying the standard at either the beginning of the earliest comparative period presented or the beginning of the period of adoption. We adopted the standard on its effective date of January 1, 2019. We also elected certain practical expedients that allow us not to reassess existing leases under the new guidance. As of June 30, 2019, $17.1 million of right-of-use assets and $17.6 million of lease liabilities for operating leases were added to the other assets and other liabilities line items of the balance sheet, respectively, as a result of the adoption of this update. 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 is effective for fiscal years beginning after December 15, 2017, including interim periods within those years. The adoption of this new guidance 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 which did not have a material impact on our financial results or disclosures. In May 2014, the FASB issued ASU 2014‑09, 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 is 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 is subject to this updated guidance. The adoption of this new guidance did not have a material impact on our financial results or disclosures. Recently Issued Accounting Pronouncements On August 28, 2018, the FASB issued ASU 2018-13, “Fair Value Measurement: Disclosure Framework- Changes to the Disclosure Requirements for Fair Value Measurement” (Topic 820), which amends ASC 820 to add, remove, and modify fair value measurement disclosure requirements. The requirements to disclose the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, the policy for timing of transfers between levels and the valuation processes for Level 3 fair value measurements have all been removed. However, the changes in unrealized gains and losses included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period must be disclosed along with the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements (or other quantitative information if it is more reasonable). Finally, for investments measured at net asset value, the requirements have been modified so that the timing of liquidation and the date when restrictions from redemption might lapse are only disclosed if the investee has communicated the timing to the entity or announced the timing publicly. This ASU is effective for annual and interim reporting periods beginning after December 15, 2019. As the amendments are only disclosure related, our financial statements will not be materially impacted by this update. 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. |
Fair Value
Fair Value | 6 Months Ended |
Jun. 30, 2019 | |
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 June 30, 2019 and December 31, 2018 (in thousands): As of June 30, 2019 Quoted Prices in Active Markets for Identical Assets Other Observable Unobservable (Level 1) Inputs (Level 2) Inputs (Level 3) Total U.S. Treasury securities and obligations of U.S. Government $ — $ 48,422 $ - $ 48,422 Corporate bonds — 225,810 533 226,343 Collateralized corporate bank loans — 132,678 - 132,678 Municipal bonds — 115,849 - 115,849 Mortgage-backed — 9,856 - 9,856 Total debt securities — 532,615 533 533,148 Total equity securities 94,012 — — 94,012 Total other investments 2,585 — — 2,585 Total investments $ 96,597 $ 532,615 $ 533 $ 629,745 As of December 31, 2018 Quoted Prices in Active Markets for Identical Assets Other Observable Unobservable (Level 1) Inputs (Level 2) Inputs (Level 3) Total U.S. Treasury securities and obligations of U.S. Government $ — $ 48,106 $ — $ 48,106 Corporate bonds — 241,861 291 242,152 Collateralized corporate bank loans — 126,528 — 126,528 Municipal bonds — 115,527 — 115,527 Mortgage-backed — 13,557 — 13,557 Total debt securities — 545,579 291 545,870 Total equity securities 80,896 — — 80,896 Total other investments 1,148 — — 1,148 Total investments $ 82,044 $ 545,579 $ 291 $ 627,914 Due to significant unobservable inputs into the valuation model for one corporate bond as of June 30, 2019 and December 31, 2018, we classified this investment as Level 3 in the fair value hierarchy. 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. Significant changes in the unobservable inputs in the fair value measurement of this corporate bond 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 six months ended June 30, 2019 and 2018 (in thousands): Beginning balance as of January 1, 2019 $ 291 Sales — Settlements — Purchases — Issuances — Total realized/unrealized gains included in net income 242 Net gain included in other comprehensive income — Transfers into Level 3 — Transfers out of Level 3 — Ending balance as of June 30, 2019 $ 533 Beginning balance as of January 1, 2018 $ 3,757 Sales (2,925) Settlements — Purchases — Issuances — Total realized/unrealized gains included in net income 104 Net gains included in other comprehensive income — Transfers into Level 3 — Transfers out of Level 3 (621) Ending balance as of June 30, 2018 $ 315 |
Investments
Investments | 6 Months Ended |
Jun. 30, 2019 | |
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 Unrealized Unrealized Amortized Cost Gains Losses Fair Value As of June 30, 2019 U.S. Treasury securities and obligations of U.S. Government $ 48,369 $ 112 $ (59) $ 48,422 Corporate bonds 223,770 2,813 (240) 226,343 Collateralized corporate bank loans 133,840 59 (1,221) 132,678 Municipal bonds 114,638 1,304 (93) 115,849 Mortgage-backed 9,899 51 (94) 9,856 Total debt securities 530,516 4,339 (1,707) 533,148 Total equity securities 68,709 30,657 (5,354) 94,012 Total other investments 3,763 — (1,178) 2,585 Total investments $ 602,988 $ 34,996 $ (8,239) $ 629,745 As of December 31, 2018 U.S. Treasury securities and obligations of U.S. Government $ 48,609 $ 5 $ (508) $ 48,106 Corporate bonds 243,314 440 (1,602) 242,152 Collateralized corporate bank loans 131,779 19 (5,270) 126,528 Municipal bonds 112,574 3,791 (838) 115,527 Mortgage-backed 13,992 11 (446) 13,557 Total debt securities 550,268 4,266 (8,664) 545,870 Total equity securities 68,709 20,693 (8,506) 80,896 Total other investments 3,763 — (2,615) 1,148 Total investments $ 622,740 $ 24,959 $ (19,785) $ 627,914 Major categories of net investment gains (losses) on investments are summarized as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 U.S. Treasury securities and obligations of U.S. Government $ — $ — $ — $ — Corporate bonds (6) (14) 17 (22) Collateralized corporate bank loans 21 35 38 47 Municipal bonds 46 2 4,147 (19) Mortgage-backed (1) (1) (1) 1 Equity securities — 359 — 359 Gain on investments 60 381 4,201 366 Unrealized gains (losses) on equity securities 5,356 553 13,116 (3,904) Unrealized gains (losses) on other investments 1,401 (401) 1,437 (764) Investment gains (losses), net $ 6,817 $ 533 $ 18,754 $ (4,302) We realized gross gains on investments of $0.2 million and $0.5 million during the three months ended June 30, 2019 and 2018, respectively and $4.4 million and $0.6 million for the six months ended June 30, 2019 and 2018, respectively. We realized gross losses on investments of $0.1 million and $ 0.1 million for the three months ended June 30, 2019 and 2018, respectively, and $0.2 million and $0.2 million for the six months ended June 30, 2019 and 2018, respectively. 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 June 30, 2019 and December 31, 2018 (in thousands): As of June 30, 2019 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 $ — $ — $ 23,216 $ (59) $ 23,216 $ (59) Corporate bonds 18,143 (144) 36,011 (96) 54,154 (240) Collateralized corporate bank loans 85,804 (871) 17,564 (350) 103,368 (1,221) Municipal bonds 10,898 (55) 5,735 (38) 16,633 (93) Mortgage-backed 3,518 (6) 3,911 (88) 7,429 (94) Total debt securities 118,363 (1,076) 86,437 (631) 204,800 (1,707) Total equity securities 7,952 (1,588) 4,524 (3,766) 12,476 (5,354) Total other investments 28 (10) 2,557 (1,168) 2,585 (1,178) Total investments $ 126,343 $ (2,674) $ 93,518 $ (5,565) $ 219,861 $ (8,239) As of December 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 $ 18,902 $ (181) $ 28,201 $ (327) $ 47,103 $ (508) Corporate bonds 117,450 (907) 100,060 (695) 217,510 (1,602) Collateralized corporate bank loans 120,410 (4,938) 4,931 (332) 125,341 (5,270) Municipal bonds 14,281 (96) 25,891 (742) 40,172 (838) Mortgage-backed 6,592 (60) 5,986 (386) 12,578 (446) Total debt securities 277,635 (6,182) 165,069 (2,482) 442,704 (8,664) Total equity securities 30,981 (3,699) 4,475 (4,807) 35,456 (8,506) Total other investments 1,148 (2,615) — — 1,148 (2,615) Total investments $ 309,764 $ (12,496) $ 169,544 $ (7,289) $ 479,308 $ (19,785) We had a total of 173 debt securities with an unrealized loss, of which 117 were in an unrealized loss position for less than one year and 56 were in an unrealized loss position for a period of one year or greater, as of June 30, 2019. We had a total of 328 debt securities with an unrealized loss, of which 221 were in an unrealized loss position for less than one year and 107 were in an unrealized loss position for a period of one year or greater, as of December 31, 2018. We consider these losses as a temporary decline in value as they are predominately on securities 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 June 30, 2019 and December 31, 2018 are as follows (in thousands): June 30, December 31, 2019 2018 Investment Type Equity warrant $ 2,585 $ 1,148 Total other investments $ 2,585 $ 1,148 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 June 30, 2019 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 Cost Fair Value (in thousands) Due in one year or less $ 117,306 $ 117,293 Due after one year through five years 276,397 278,718 Due after five years through ten years 96,047 95,636 Due after ten years 30,867 31,645 Mortgage-backed 9,899 9,856 $ 530,516 $ 533,148 |
Pledged Investments
Pledged Investments | 6 Months Ended |
Jun. 30, 2019 | |
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 $29.7 million and $29.5 million at June 30, 2019 and December 31, 2018, respectively. |
Reserves for Unpaid Losses and
Reserves for Unpaid Losses and Loss Adjustment Expenses | 6 Months Ended |
Jun. 30, 2019 | |
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): June 30, June 30, 2019 2018 Balance at January 1 $ 527,247 527,100 Less reinsurance recoverable 221,716 154,612 Net balance at January 1 305,531 372,488 Incurred related to: Current year 141,909 122,870 Prior years 1,404 4,453 Total incurred 143,313 127,323 Paid related to: Current year 38,563 28,321 Prior years 107,899 140,339 Total paid 146,462 168,660 Net balance at June 30 302,382 331,151 Plus reinsurance recoverable 249,161 189,401 Balance at June 30 $ 551,543 $ 520,552 The impact from the unfavorable (favorable) net prior years’ loss development on each reporting segment is presented below: June 30, 2019 2018 Specialty Commercial Segment $ 5,203 $ 6,861 Standard Commercial Segment (3,583) (1,560) Personal Segment (216) (848) Corporate — — Total (favorable) net prior year development $ 1,404 $ 4,453 The following describes the primary factors behind each segment’s prior accident year reserve development for the six months ended June 30, 2019 and 2018: Six months ended June 30, 2019: · Specialty Commercial Segment. Our Commercial Auto business unit experienced net unfavorable development in the 2017 and prior accident years primarily in the primary commercial auto liability line of business, partially offset by net favorable development in the primary commercial auto line of business in the 2018 accident year. Our E&S Casualty business unit experienced net unfavorable development primarily in our E&S package insurance products in the 2017 and prior accident years, partially offset by net favorable development in the 2018 accident year. We experienced net favorable development in our E&S Property and Professional Liability business units, partially offset by net unfavorable development in our Aerospace & Programs business unit. · Standard Commercial Segment. Our Commercial Accounts business unit experienced net favorable development in the 2018, 2017, 2014 and 2012 and prior accident years primarily in the general liability line of business, partially offset by net unfavorable development primarily in the general liability line of business in the 2016 and 2015 accident years. Our Commercial Accounts business unit experienced net favorable development in the 2017 and 2015 accident years in the occupational accident line of business, partially offset by net unfavorable development in the 2016 accident year. The run-off from our former Workers Compensation operating unit experienced net favorable development in the 2015 and 2012 and prior accident years. · Personal Segment. Net favorable development in our Specialty Personal Lines business unit was mostly attributable to the 2018, 2017, 2015, 2013 and prior accident years, partially offset by unfavorable development in the 2016 and 2014 accident years . Six months ended June 30, 2018: · Specialty Commercial Segment. Our Commercial Auto business unit experienced net unfavorable development in the 2016 and prior accident years primarily in the commercial auto liability line of business, partially offset by favorable development primarily in the commercial auto liability line of business in the 2017 accident year. We experienced net unfavorable development in our E&S Property, Professional Liability, E&S Casualty and Aerospace& Programs business units. · Standard Commercial Segment. Our Commercial Accounts business 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 and net unfavorable development in the 2017 and prior accident years in the occupational accident line of business. · Personal Segment. Net favorable development in our Specialty Personal Lines operating unit was mostly attributable to the 2013 through 2017 accident years, partially offset by unfavorable development in the 2012 and prior accident years . |
Share-based Payment Arrangement
Share-based Payment Arrangements | 6 Months Ended |
Jun. 30, 2019 | |
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 June 30, 2019, there were no outstanding incentive stock options and outstanding non-qualified stock options to purchase 14,157 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 June 30, 2019, restricted stock units representing the right to receive up to 383,530 shares of our common stock were outstanding under the 2015 LTIP. There were no stock option awards granted under the 2015 LTIP as of June 30, 2019. Stock Options: Incentive stock options granted under the 2005 LTIP prior to 2009 vested 10%, 20%, 30% and 40% on the first, second, third and fourth anniversary dates of the grant, respectively, and terminated 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. 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 vested in equal annual increments on each of the first seven anniversary dates and terminated ten years from the date of grant. A summary of the status of our stock options as of June 30, 2019 and changes during the six months then ended is presented below: Average Remaining Aggregate Number of Weighted Average Contractual Intrinsic Value Shares Exercise Price Term (Years) ($000) Outstanding at January 1, 2019 244,157 $ 6.63 Granted — — Exercised (230,000) $ 6.61 Forfeited or expired — $ — Outstanding at June 30, 2019 14,157 $ 6.99 2.5 $ 102 Exercisable at June 30, 2019 14,157 $ 6.99 2.5 $ 102 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 Six Months Ended June 30, June 30, 2019 2018 2019 2018 Intrinsic value of options exercised $ — $ 122 $ 845 $ 122 Cost of share-based payments (non-cash) $ — $ — $ — $ — Income tax benefit of share-based payments recognized in income $ — $ — $ — $ — As of June 30, 2019, 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 six months of 2019 or 2018. 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, 2017 and 2018 was $11.10, $11.41, $10.20 and $10.87 per unit, respectively. We incurred compensation expense of $140 thousand and $197 thousand related to restricted stock units during the three months and six months ended June 30, 2019, respectively. We incurred compensation (benefit) expense of ($43) thousand and $1 thousand related to restricted stock units during the three and six months ended June 30, 2018, respectively. We recorded income tax benefit of $29 thousand and $41 thousand related to restricted stock units during the three months and six months ended June 30, 2019, respectively. We recorded income tax expense of $9 thousand related to restricted stock units during the three months ended June 30, 2018. We recorded de-minimus income tax expense related to restricted stock units during the six months ended June 30, 2018. The following table details the status of our restricted stock units as of and for the six months ended June 30, 2019 and 2018: Number of Restricted Stock Units 2019 2018 Nonvested at January 1 338,897 385,779 Granted — — Vested — (8,198) Forfeited (83,210) (182,743) Nonvested at June 30 255,687 194,838 As of June 30, 2019, 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 $ 0.9 million of compensation cost related to unvested restricted stock units, of which $0.3 million is expected to be recognized during the remainder of 2019, $0.5 million is expected to be recognized in 2020 and $0.1 million is expected to be recognized in 2021. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2019 | |
Segment Information [Abstract] | |
Segment Information | 8. Segment Information The following is business segment information for the three and six months ended June 30, 2019 and 2018 (in thousands): Three Months Ended Six Months Ended 2019 2018 2019 2018 Revenues Specialty Commercial Segment $ 73,592 $ 72,081 $ 141,559 $ 145,205 Standard Commercial Segment 17,310 19,247 35,683 38,122 Personal Segment 23,116 7,916 42,599 15,536 Corporate 6,885 (1,119) 19,183 (7,397) Consolidated $ 120,903 $ 98,125 $ 239,024 $ 191,466 Pre-tax income (loss) Specialty Commercial Segment $ 10,427 $ 8,770 $ 18,395 $ 18,528 Standard Commercial Segment 2,057 2,656 3,564 3,975 Personal Segment 2,441 (1) 4,014 (23) Corporate 1,559 (5,053) 9,429 (15,299) Consolidated $ 16,484 $ 6,372 $ 35,402 $ 7,181 The following is additional business segment information as of the dates indicated (in thousands): June 30, December 31, Assets: 2019 2018 Specialty Commercial Segment $ 1,005,810 $ 858,262 Standard Commercial Segment 184,101 158,881 Personal Segment 170,348 226,431 Corporate 45,509 21,320 Consolidated $ 1,405,768 $ 1,264,894 |
Reinsurance
Reinsurance | 6 Months Ended |
Jun. 30, 2019 | |
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 June 30, 2019 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 Six Months Ended June 30, June 30, 2019 2018 2019 2018 Ceded earned premiums $ 76,309 $ 68,635 $ 146,455 $ 130,264 Reinsurance recoveries $ 58,975 $ 43,989 $ 107,564 $ 93,427 |
Revolving Credit Facility
Revolving Credit Facility | 6 Months Ended |
Jun. 30, 2019 | |
Revolving Credit Facility [Abstract] | |
Revolving Credit Facility | 10. Revolving Credit Facility Our Second Restated Credit Agreement with Frost Bank (“Frost”) dated June 30, 2015, as amended to date, 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. All principal and accrued interest on Facility A becomes due and payable on June 30, 2020. As of June 30, 2019, we had no outstanding borrowings under Facility A. The Second Restated Credit Agreement with Frost also provides a $30.0 million revolving credit facility (“Facility B”), in addition to Facility A. We may use Facility B loan proceeds solely for the purpose of making capital contributions to AHIC and HIC. 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 June 30, 2019, 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 all of these covenants. |
Subordinated Debt Securities
Subordinated Debt Securities | 6 Months Ended |
Jun. 30, 2019 | |
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 June 30, 2019, the principal balance of our Trust I subordinated debt was $30.9 million and the interest rate was 5.66% 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 June 30, 2019, the principal balance of our Trust II subordinated debt was $25.8 million and the interest rate was 5.31% per annum. |
Deferred Policy Acquisition Cos
Deferred Policy Acquisition Costs | 6 Months Ended |
Jun. 30, 2019 | |
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 Six Months Ended June 30, June 30, 2019 2018 2019 2018 Deferred $ (35,871) $ 6,306 $ (47,547) $ 16,671 Amortized 34,788 (8,242) 41,530 (18,615) Net $ (1,083) $ (1,936) $ (6,017) $ (1,944) |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2019 | |
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 Six Months Ended June 30, June 30, 2019 2018 2019 2018 Weighted average shares - basic 18,123 18,067 18,090 18,116 Effect of dilutive securities 128 107 160 114 Weighted average shares - assuming dilution 18,251 18,174 18,250 18,230 For each of the three and six months ended June 30, 2019, no 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. For each of the three and six months ended June 30, 2018, 62,500 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 | 6 Months Ended |
Jun. 30, 2019 | |
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 Six Months Ended June 30, June 30, 2019 2018 2019 2018 Interest cost $ 114 $ 106 $ 227 $ 212 Amortization of net loss 36 26 72 53 Expected return on plan assets (150) (174) (299) (347) Net periodic pension cost $ — $ (42) $ — $ (82) Contributed amount $ — $ — $ — $ — Refer to Note 14 to the consolidated financial statements in our Annual Report on Form 10‑K for the year ended December 31, 2018 for more discussion of our retirement plans. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2019 | |
Income Taxes [Abstract] | |
Income Taxes | 15. Income Taxes Our effective income tax rate for the six months ended June 30, 2019 and 2018 was 20.8% and 20.1%, respectively. The effective tax rates for 2019 and 2018 were both favorably impacted by the lower statutory rate from the enactment of the Tax Cuts and Jobs Act in December 2017. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 6 Months Ended |
Jun. 30, 2019 | |
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 (in thousands): As of June 30, 2019 2018 Cash and cash equivalents $ 67,670 $ 79,583 Restricted cash 3,486 3,078 Total cash, cash equivalents and restricted cash shown in the statement of cash flows $ 71,156 $ 82,661 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 six months ended June 30, 2019 and 2018: Six Months Ended June 30, 2019 2018 Interest paid $ 2,527 $ 2,145 Income taxes paid (recovered) $ 2,848 $ (5,287) Supplemental schedule of non-cash investing activities: Receivable for securities related to investment disposals $ 2,581 $ 3,780 Payable for securities related to investment purchases $ 3,167 $ 6,706 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2019 | |
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. |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Income Balances | 6 Months Ended |
Jun. 30, 2019 | |
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 June 30, 2019 and 2018 were as follows (in thousands): Accumulated Other Pension Unrealized Comprehensive Liability Gains (Loss) Income (Loss) Balance at December 31, 2017 $ (2,310) $ 14,544 $ 12,234 Other comprehensive income: Change in net actuarial gain 53 — 53 Tax effect on change in net actuarial gain (11) — (11) Unrealized holding gains arising during the period — 1,926 1,926 Tax effect on unrealized gains arising during the period — (404) (404) Reclassification adjustment for realized gains included in investment gains and losses — (366) (366) Tax effect on reclassification adjustment for gains included in income tax expense — 77 77 Other comprehensive income, net of tax 42 1,233 1,275 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 June 30, 2018 $ (2,837) $ 1,972 $ (865) Balance at December 31, 2018 $ (3,334) $ (3,326) $ (6,660) Other comprehensive income: Change in net actuarial gain 72 — 72 Tax effect on change in net actuarial gain (15) — (15) Unrealized holding gains arising during the period — 11,233 11,233 Tax effect on unrealized gains arising during the period — (2,359) (2,359) Reclassification adjustment for gains included in net realized gains — (4,201) (4,201) Tax effect on reclassification adjustment for gains included in income tax expense — 883 883 Other comprehensive income, net of tax 57 5,556 5,613 Balance at June 30, 2019 $ (3,277) $ 2,230 $ (1,047) |
Leases
Leases | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Leases | 19. Leases We adopted ASU 2016-02, “Leases, (Topic 842)” on January 1, 2019, which resulted in the recognition of operating leases on the balance sheet in 2019 and going forward. See Note 2 for more information on the adoption of ASU 2016-02. Right-of-use assets are included in the other assets line item and lease liabilities are included in the other liabilities line item of the consolidated balance sheet. We also elected certain practical expedients that allow us not to reassess existing leases under the new guidance. We determine if a contract contains a lease at inception and recognize operating lease right-of-use assets and operating lease liabilities based on the present value of the future minimum lease payments at the commencement date. Since our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at the commencement date in determining the present value of future payments. Lease agreements have lease and non-lease components, which are accounted for as a single lease component. Lease expense is recognized on a straight-line basis over the lease term. The Company’s operating lease obligations pertain to office leases utilized in the operation of our business. Our leases have remaining terms of 1 to 13 years, some of which include options to extend the leases. The components of lease expense and other lease information as of and during the three and six-month periods ended June 30, 2019 are as follows (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2019 2019 Operating lease cost $ 816 $ 1,356 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 552 $ 1,103 Right-of-use assets obtained in exchange for new operating lease liabilities $ — $ — We incurred $16 thousand in short-term lease payments not included in our lease liability during the six months ended June 30, 2019. The components of lease expense and other lease information as of and during the six-month period ended June 30, 2019 are as follows (in thousands): June 30, 2019 Operating lease right-of-use assets $ 17,109 Operating lease liabilities $ 17,619 Weighted-average remaining lease term - operating leases Weighted-average discount rate - operating leases Future minimum lease payments under non-cancellable leases as of June 30, 2019 and December 31, 2018 are as follows (in thousands): June 30, December 31, 2019 2018 2019 $ 786 $ 1,889 2020 2,473 2,473 2021 2,172 2,172 2022 2,171 2,171 2023 1,885 1,885 Thereafter 15,266 15,266 Total future minimum lease payments $ 24,753 $ 25,856 Less imputed interest $ (7,134) $ N/A Total operating lease liability $ 17,619 $ N/A |
Basis of Presentation (Policy)
Basis of Presentation (Policy) | 6 Months Ended |
Jun. 30, 2019 | |
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. |
Reclassifications | Reclassifications Certain prior year amounts have been reclassified to conform with current year presentation. |
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, 2018 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 June 30, 2019. 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 $42.6 million as of June 30, 2019. 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/payable, 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. |
Adoption of New Accounting Pronouncements | Adoption of New Accounting Pronouncements In February 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 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. The adoption of ASU 2017‑08 had no impact on our financial results and disclosures. 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 in 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. The adoption of this standard did not have a material impact on our financial condition or results of operations. In January 2016, the FASB issued ASU 2016‑01, “Recognition and Measurement of Financial Assets and Financial Liabilities” (Subtopic 825‑10). ASU 2016‑01 requires 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 also requires 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 (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 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. During 2018, the FASB issued several amendments and targeted improvements to ease the application of the standard, including the addition of a transition approach that gives the Company the option of applying the standard at either the beginning of the earliest comparative period presented or the beginning of the period of adoption. We adopted the standard on its effective date of January 1, 2019. We also elected certain practical expedients that allow us not to reassess existing leases under the new guidance. As of June 30, 2019, $17.1 million of right-of-use assets and $17.6 million of lease liabilities for operating leases were added to the other assets and other liabilities line items of the balance sheet, respectively, as a result of the adoption of this update. 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 is effective for fiscal years beginning after December 15, 2017, including interim periods within those years. The adoption of this new guidance 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 which did not have a material impact on our financial results or disclosures. In May 2014, the FASB issued ASU 2014‑09, 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 is 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 is subject to this updated guidance. The adoption of this new guidance did not have a material impact on our financial results or disclosures. Recently Issued Accounting Pronouncements On August 28, 2018, the FASB issued ASU 2018-13, “Fair Value Measurement: Disclosure Framework- Changes to the Disclosure Requirements for Fair Value Measurement” (Topic 820), which amends ASC 820 to add, remove, and modify fair value measurement disclosure requirements. The requirements to disclose the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, the policy for timing of transfers between levels and the valuation processes for Level 3 fair value measurements have all been removed. However, the changes in unrealized gains and losses included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period must be disclosed along with the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements (or other quantitative information if it is more reasonable). Finally, for investments measured at net asset value, the requirements have been modified so that the timing of liquidation and the date when restrictions from redemption might lapse are only disclosed if the investee has communicated the timing to the entity or announced the timing publicly. This ASU is effective for annual and interim reporting periods beginning after December 15, 2019. As the amendments are only disclosure related, our financial statements will not be materially impacted by this update. 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. |
Fair Value (Tables)
Fair Value (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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 June 30, 2019 and December 31, 2018 (in thousands): As of June 30, 2019 Quoted Prices in Active Markets for Identical Assets Other Observable Unobservable (Level 1) Inputs (Level 2) Inputs (Level 3) Total U.S. Treasury securities and obligations of U.S. Government $ — $ 48,422 $ - $ 48,422 Corporate bonds — 225,810 533 226,343 Collateralized corporate bank loans — 132,678 - 132,678 Municipal bonds — 115,849 - 115,849 Mortgage-backed — 9,856 - 9,856 Total debt securities — 532,615 533 533,148 Total equity securities 94,012 — — 94,012 Total other investments 2,585 — — 2,585 Total investments $ 96,597 $ 532,615 $ 533 $ 629,745 As of December 31, 2018 Quoted Prices in Active Markets for Identical Assets Other Observable Unobservable (Level 1) Inputs (Level 2) Inputs (Level 3) Total U.S. Treasury securities and obligations of U.S. Government $ — $ 48,106 $ — $ 48,106 Corporate bonds — 241,861 291 242,152 Collateralized corporate bank loans — 126,528 — 126,528 Municipal bonds — 115,527 — 115,527 Mortgage-backed — 13,557 — 13,557 Total debt securities — 545,579 291 545,870 Total equity securities 80,896 — — 80,896 Total other investments 1,148 — — 1,148 Total investments $ 82,044 $ 545,579 $ 291 $ 627,914 |
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 six months ended June 30, 2019 and 2018 (in thousands): Beginning balance as of January 1, 2019 $ 291 Sales — Settlements — Purchases — Issuances — Total realized/unrealized gains included in net income 242 Net gain included in other comprehensive income — Transfers into Level 3 — Transfers out of Level 3 — Ending balance as of June 30, 2019 $ 533 Beginning balance as of January 1, 2018 $ 3,757 Sales (2,925) Settlements — Purchases — Issuances — Total realized/unrealized gains included in net income 104 Net gains included in other comprehensive income — Transfers into Level 3 — Transfers out of Level 3 (621) Ending balance as of June 30, 2018 $ 315 |
Investments (Tables)
Investments (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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 Unrealized Unrealized Amortized Cost Gains Losses Fair Value As of June 30, 2019 U.S. Treasury securities and obligations of U.S. Government $ 48,369 $ 112 $ (59) $ 48,422 Corporate bonds 223,770 2,813 (240) 226,343 Collateralized corporate bank loans 133,840 59 (1,221) 132,678 Municipal bonds 114,638 1,304 (93) 115,849 Mortgage-backed 9,899 51 (94) 9,856 Total debt securities 530,516 4,339 (1,707) 533,148 Total equity securities 68,709 30,657 (5,354) 94,012 Total other investments 3,763 — (1,178) 2,585 Total investments $ 602,988 $ 34,996 $ (8,239) $ 629,745 As of December 31, 2018 U.S. Treasury securities and obligations of U.S. Government $ 48,609 $ 5 $ (508) $ 48,106 Corporate bonds 243,314 440 (1,602) 242,152 Collateralized corporate bank loans 131,779 19 (5,270) 126,528 Municipal bonds 112,574 3,791 (838) 115,527 Mortgage-backed 13,992 11 (446) 13,557 Total debt securities 550,268 4,266 (8,664) 545,870 Total equity securities 68,709 20,693 (8,506) 80,896 Total other investments 3,763 — (2,615) 1,148 Total investments $ 622,740 $ 24,959 $ (19,785) $ 627,914 |
Major Categories of Net Investment Gains (Losses) on Investments | Major categories of net investment gains (losses) on investments are summarized as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 U.S. Treasury securities and obligations of U.S. Government $ — $ — $ — $ — Corporate bonds (6) (14) 17 (22) Collateralized corporate bank loans 21 35 38 47 Municipal bonds 46 2 4,147 (19) Mortgage-backed (1) (1) (1) 1 Equity securities — 359 — 359 Gain on investments 60 381 4,201 366 Unrealized gains (losses) on equity securities 5,356 553 13,116 (3,904) Unrealized gains (losses) on other investments 1,401 (401) 1,437 (764) Investment gains (losses), net $ 6,817 $ 533 $ 18,754 $ (4,302) |
Summary of Gross Unrealized Gain (Loss) on Investments | 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 June 30, 2019 and December 31, 2018 (in thousands): As of June 30, 2019 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 $ — $ — $ 23,216 $ (59) $ 23,216 $ (59) Corporate bonds 18,143 (144) 36,011 (96) 54,154 (240) Collateralized corporate bank loans 85,804 (871) 17,564 (350) 103,368 (1,221) Municipal bonds 10,898 (55) 5,735 (38) 16,633 (93) Mortgage-backed 3,518 (6) 3,911 (88) 7,429 (94) Total debt securities 118,363 (1,076) 86,437 (631) 204,800 (1,707) Total equity securities 7,952 (1,588) 4,524 (3,766) 12,476 (5,354) Total other investments 28 (10) 2,557 (1,168) 2,585 (1,178) Total investments $ 126,343 $ (2,674) $ 93,518 $ (5,565) $ 219,861 $ (8,239) As of December 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 $ 18,902 $ (181) $ 28,201 $ (327) $ 47,103 $ (508) Corporate bonds 117,450 (907) 100,060 (695) 217,510 (1,602) Collateralized corporate bank loans 120,410 (4,938) 4,931 (332) 125,341 (5,270) Municipal bonds 14,281 (96) 25,891 (742) 40,172 (838) Mortgage-backed 6,592 (60) 5,986 (386) 12,578 (446) Total debt securities 277,635 (6,182) 165,069 (2,482) 442,704 (8,664) Total equity securities 30,981 (3,699) 4,475 (4,807) 35,456 (8,506) Total other investments 1,148 (2,615) — — 1,148 (2,615) Total investments $ 309,764 $ (12,496) $ 169,544 $ (7,289) $ 479,308 $ (19,785) |
Carrying Value of Other Invested Assets Portfolio | Details regarding the carrying value of the other investments portfolio as of June 30, 2019 and December 31, 2018 are as follows (in thousands): June 30, December 31, 2019 2018 Investment Type Equity warrant $ 2,585 $ 1,148 Total other investments $ 2,585 $ 1,148 |
Schedule of Amortized Cost and Estimated Fair Value of Debt Securities by Contractual Maturities | Amortized Cost Fair Value (in thousands) Due in one year or less $ 117,306 $ 117,293 Due after one year through five years 276,397 278,718 Due after five years through ten years 96,047 95,636 Due after ten years 30,867 31,645 Mortgage-backed 9,899 9,856 $ 530,516 $ 533,148 |
Reserves for Unpaid Losses an_2
Reserves for Unpaid Losses and Loss Adjustment Expenses (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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): June 30, June 30, 2019 2018 Balance at January 1 $ 527,247 527,100 Less reinsurance recoverable 221,716 154,612 Net balance at January 1 305,531 372,488 Incurred related to: Current year 141,909 122,870 Prior years 1,404 4,453 Total incurred 143,313 127,323 Paid related to: Current year 38,563 28,321 Prior years 107,899 140,339 Total paid 146,462 168,660 Net balance at June 30 302,382 331,151 Plus reinsurance recoverable 249,161 189,401 Balance at June 30 $ 551,543 $ 520,552 |
Impact of Net Prior Years Loss Development by Segment | June 30, 2019 2018 Specialty Commercial Segment $ 5,203 $ 6,861 Standard Commercial Segment (3,583) (1,560) Personal Segment (216) (848) Corporate — — Total (favorable) net prior year development $ 1,404 $ 4,453 |
Share-Based Payment Arrangeme_2
Share-Based Payment Arrangements (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Share-Based Payment Arrangements [Abstract] | |
Summary of the Status of Stock Options | Average Remaining Aggregate Number of Weighted Average Contractual Intrinsic Value Shares Exercise Price Term (Years) ($000) Outstanding at January 1, 2019 244,157 $ 6.63 Granted — — Exercised (230,000) $ 6.61 Forfeited or expired — $ — Outstanding at June 30, 2019 14,157 $ 6.99 2.5 $ 102 Exercisable at June 30, 2019 14,157 $ 6.99 2.5 $ 102 |
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 Six Months Ended June 30, June 30, 2019 2018 2019 2018 Intrinsic value of options exercised $ — $ 122 $ 845 $ 122 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 2019 2018 Nonvested at January 1 338,897 385,779 Granted — — Vested — (8,198) Forfeited (83,210) (182,743) Nonvested at June 30 255,687 194,838 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Segment Information [Abstract] | |
Schedule of Business Segment Information | The following is business segment information for the three and six months ended June 30, 2019 and 2018 (in thousands): Three Months Ended Six Months Ended 2019 2018 2019 2018 Revenues Specialty Commercial Segment $ 73,592 $ 72,081 $ 141,559 $ 145,205 Standard Commercial Segment 17,310 19,247 35,683 38,122 Personal Segment 23,116 7,916 42,599 15,536 Corporate 6,885 (1,119) 19,183 (7,397) Consolidated $ 120,903 $ 98,125 $ 239,024 $ 191,466 Pre-tax income (loss) Specialty Commercial Segment $ 10,427 $ 8,770 $ 18,395 $ 18,528 Standard Commercial Segment 2,057 2,656 3,564 3,975 Personal Segment 2,441 (1) 4,014 (23) Corporate 1,559 (5,053) 9,429 (15,299) Consolidated $ 16,484 $ 6,372 $ 35,402 $ 7,181 |
Schedule of Additional Business Segment Information | The following is additional business segment information as of the dates indicated (in thousands): June 30, December 31, Assets: 2019 2018 Specialty Commercial Segment $ 1,005,810 $ 858,262 Standard Commercial Segment 184,101 158,881 Personal Segment 170,348 226,431 Corporate 45,509 21,320 Consolidated $ 1,405,768 $ 1,264,894 |
Reinsurance (Tables)
Reinsurance (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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 Six Months Ended June 30, June 30, 2019 2018 2019 2018 Ceded earned premiums $ 76,309 $ 68,635 $ 146,455 $ 130,264 Reinsurance recoveries $ 58,975 $ 43,989 $ 107,564 $ 93,427 |
Deferred Policy Acquisition C_2
Deferred Policy Acquisition Costs (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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 Six Months Ended June 30, June 30, 2019 2018 2019 2018 Deferred $ (35,871) $ 6,306 $ (47,547) $ 16,671 Amortized 34,788 (8,242) 41,530 (18,615) Net $ (1,083) $ (1,936) $ (6,017) $ (1,944) |
Earnings per Share (Tables)
Earnings per Share (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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 Six Months Ended June 30, June 30, 2019 2018 2019 2018 Weighted average shares - basic 18,123 18,067 18,090 18,116 Effect of dilutive securities 128 107 160 114 Weighted average shares - assuming dilution 18,251 18,174 18,250 18,230 |
Net Periodic Pension Cost (Tabl
Net Periodic Pension Cost (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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 Six Months Ended June 30, June 30, 2019 2018 2019 2018 Interest cost $ 114 $ 106 $ 227 $ 212 Amortization of net loss 36 26 72 53 Expected return on plan assets (150) (174) (299) (347) Net periodic pension cost $ — $ (42) $ — $ (82) Contributed amount $ — $ — $ — $ — |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Supplemental Cash Flow Information [Abstract] | |
Reconciliation of Cash, Cash Equivalents and Restricted 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 (in thousands): As of June 30, 2019 2018 Cash and cash equivalents $ 67,670 $ 79,583 Restricted cash 3,486 3,078 Total cash, cash equivalents and restricted cash shown in the statement of cash flows $ 71,156 $ 82,661 |
Supplemental Cash Flow Information | The following table provides supplemental cash flow information for the six months ended June 30, 2019 and 2018: Six Months Ended June 30, 2019 2018 Interest paid $ 2,527 $ 2,145 Income taxes paid (recovered) $ 2,848 $ (5,287) Supplemental schedule of non-cash investing activities: Receivable for securities related to investment disposals $ 2,581 $ 3,780 Payable for securities related to investment purchases $ 3,167 $ 6,706 |
Changes in Accumulated Other _2
Changes in Accumulated Other Comprehensive Income Balances (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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 June 30, 2019 and 2018 were as follows (in thousands): Accumulated Other Pension Unrealized Comprehensive Liability Gains (Loss) Income (Loss) Balance at December 31, 2017 $ (2,310) $ 14,544 $ 12,234 Other comprehensive income: Change in net actuarial gain 53 — 53 Tax effect on change in net actuarial gain (11) — (11) Unrealized holding gains arising during the period — 1,926 1,926 Tax effect on unrealized gains arising during the period — (404) (404) Reclassification adjustment for realized gains included in investment gains and losses — (366) (366) Tax effect on reclassification adjustment for gains included in income tax expense — 77 77 Other comprehensive income, net of tax 42 1,233 1,275 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 June 30, 2018 $ (2,837) $ 1,972 $ (865) Balance at December 31, 2018 $ (3,334) $ (3,326) $ (6,660) Other comprehensive income: Change in net actuarial gain 72 — 72 Tax effect on change in net actuarial gain (15) — (15) Unrealized holding gains arising during the period — 11,233 11,233 Tax effect on unrealized gains arising during the period — (2,359) (2,359) Reclassification adjustment for gains included in net realized gains — (4,201) (4,201) Tax effect on reclassification adjustment for gains included in income tax expense — 883 883 Other comprehensive income, net of tax 57 5,556 5,613 Balance at June 30, 2019 $ (3,277) $ 2,230 $ (1,047) |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Summary of components of lease expense and other lease information | The components of lease expense and other lease information as of and during the three and six-month periods ended June 30, 2019 are as follows (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2019 2019 Operating lease cost $ 816 $ 1,356 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 552 $ 1,103 Right-of-use assets obtained in exchange for new operating lease liabilities $ — $ — |
Summary of balance sheet components | The components of lease expense and other lease information as of and during the six-month period ended June 30, 2019 are as follows (in thousands): June 30, 2019 Operating lease right-of-use assets $ 17,109 Operating lease liabilities $ 17,619 Weighted-average remaining lease term - operating leases Weighted-average discount rate - operating leases |
Summary of future minimum lease payments under non-cancellable leases as of March 31, 2019 | June 30, December 31, 2019 2018 2019 $ 786 $ 1,889 2020 2,473 2,473 2021 2,172 2,172 2022 2,171 2,171 2023 1,885 1,885 Thereafter 15,266 15,266 Total future minimum lease payments $ 24,753 $ 25,856 Less imputed interest $ (7,134) $ N/A Total operating lease liability $ 17,619 $ N/A |
General (Narrative) (Details)
General (Narrative) (Details) | 6 Months Ended |
Jun. 30, 2019segmentsubsidiary | |
General [Abstract] | |
Number of subsidiaries | subsidiary | 6 |
Number of reportable segments | segment | 3 |
Basis of Presentation (Narrativ
Basis of Presentation (Narrative) (Details) - USD ($) $ in Thousands | Jan. 01, 2018 | Aug. 23, 2007 | Jun. 21, 2005 | Jun. 30, 2019 | Dec. 31, 2017 |
Variable Interest Entity [Line Items] | |||||
Equity Securities, FV-NI, Unrealized Gain | $ 17,000 | ||||
Reclassification out of AOCI as a result of Tax Act | $ (2,600) | ||||
Right-of-use assets | $ 17,109 | ||||
Lease liabilities | 17,619 | ||||
Accumulated Other Comprehensive Income (Loss) [Member] | |||||
Variable Interest Entity [Line Items] | |||||
Reclassification out of AOCI as a result of Tax Act | $ 2,619 | ||||
Retained Earnings [Member] | |||||
Variable Interest Entity [Line Items] | |||||
Reclassification out of AOCI as a result of Tax Act | (2,619) | ||||
Accounting Standards Update 2016-01 [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | |||||
Variable Interest Entity [Line Items] | |||||
Cumulative effect of new accounting principle in period of adoption | (16,993) | ||||
Accounting Standards Update 2016-01 [Member] | Retained Earnings [Member] | |||||
Variable Interest Entity [Line Items] | |||||
Cumulative effect of new accounting principle in period of adoption | $ 16,993 | ||||
Revolving Credit Facility B [Member] | |||||
Variable Interest Entity [Line Items] | |||||
Credit facility, amount outstanding | 30,000 | ||||
Credit facility, fair value | 30,200 | ||||
Hallmark Statutory Trust I [Member] | |||||
Variable Interest Entity [Line Items] | |||||
Proceeds from issuance of trust preferred securities | $ 30,000 | ||||
Hallmark Statutory Trust II [Member] | |||||
Variable Interest Entity [Line Items] | |||||
Proceeds from issuance of trust preferred securities | $ 25,000 | ||||
Subordinated Debt [Member] | |||||
Variable Interest Entity [Line Items] | |||||
Trust preferred securities, carrying value | 55,800 | ||||
Trust preferred securities, fair value | $ 42,600 | ||||
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 | ||||
Subordinated Debt [Member] | Hallmark Statutory Trust II [Member] | |||||
Variable Interest Entity [Line Items] | |||||
Payments to acquire trust preferred investments | $ 25,800 |
Fair Value (Narrative) (Details
Fair Value (Narrative) (Details) $ in Thousands | Jun. 30, 2019USD ($) |
Fair Value [Abstract] | |
Transfer of assets from level 1 to level 2 | $ 0 |
Transfer of assets from level 2 to level 1 | 0 |
Transfer of liabilities from level 1 to level 2 | 0 |
Transfer of liabilities from level 2 to level 1 | $ 0 |
Fair Value (Fair Value of Asset
Fair Value (Fair Value of Assets Measured on a Recurring Basis) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total debt securities | $ 533,148 | $ 545,870 |
Total equity securities | 94,012 | 80,896 |
Total investments | 629,745 | 627,914 |
Equity Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total equity securities | 94,012 | 80,896 |
Other Investments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total equity securities | 2,585 | 1,148 |
Mortgage Backed [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total debt securities | 9,856 | |
Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total debt securities | 533,148 | 545,870 |
Total investments | 629,745 | 627,914 |
Fair Value, Recurring [Member] | Equity Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total equity securities | 94,012 | 80,896 |
Fair Value, Recurring [Member] | Other Investments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total equity securities | 2,585 | 1,148 |
Fair Value, Recurring [Member] | U.S. 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 | 48,422 | 48,106 |
Fair Value, Recurring [Member] | Corporate Bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total debt securities | 226,343 | 242,152 |
Fair Value, Recurring [Member] | Collateralized Corporate Bank Loans [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total debt securities | 132,678 | 126,528 |
Fair Value, Recurring [Member] | Municipal Bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total debt securities | 115,849 | 115,527 |
Fair Value, Recurring [Member] | Mortgage Backed [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total debt securities | 9,856 | 13,557 |
Quoted Prices in Active Markets for Identical Assets, Level 1 [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total investments | 96,597 | 82,044 |
Quoted Prices in Active Markets for Identical Assets, Level 1 [Member] | Fair Value, Recurring [Member] | Equity Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total equity securities | 94,012 | 80,896 |
Quoted Prices in Active Markets for Identical Assets, Level 1 [Member] | Fair Value, Recurring [Member] | Other Investments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total equity securities | 2,585 | 1,148 |
Other Observable Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total debt securities | 532,615 | 545,579 |
Total investments | 532,615 | 545,579 |
Other Observable Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | U.S. 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 | 48,422 | 48,106 |
Other Observable Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | Corporate Bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total debt securities | 225,810 | 241,861 |
Other Observable Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | Collateralized Corporate Bank Loans [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total debt securities | 132,678 | 126,528 |
Other Observable Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | Municipal Bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total debt securities | 115,849 | 115,527 |
Other Observable Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | Mortgage Backed [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total debt securities | 9,856 | 13,557 |
Unobservable Inputs, Level 3 [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total debt securities | 533 | 291 |
Total investments | 533 | 291 |
Unobservable Inputs, Level 3 [Member] | Fair Value, Recurring [Member] | Corporate Bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total debt securities | $ 533 | $ 291 |
Fair Value (Fair Value, Assets
Fair Value (Fair Value, Assets Measured on Recurring Basis Using Significant Unobservable Inputs (Level 3)) (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | $ 291 | $ 3,757 |
Sales | 2,925 | |
Settlements | ||
Purchases | ||
Issuances | ||
Total realized/unrealized gains included in net income | 242 | 104 |
Net gains included in other comprehensive income | ||
Transfers into Level 3 | ||
Transfers out of Level 3 | (621) | |
Ending balance | $ 533 | $ 315 |
Investments (Narrative) (Detail
Investments (Narrative) (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019USD ($)security | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($)security | Jun. 30, 2018USD ($) | Dec. 31, 2018security | |
Schedule of Available-for-sale Securities [Line Items] | |||||
Gross gains on investments | $ 200 | $ 500 | $ 4,400 | $ 600 | |
Gross losses on investments | 100 | 100 | 200 | 200 | |
Proceeds from sale of investment securities | $ 100 | $ 14,200 | 7,000 | $ 14,200 | |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Number of Positions [Abstract] | |||||
Other-than-temporary impairment | $ 0 | ||||
Debt Securities [Member] | |||||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Number of Positions [Abstract] | |||||
Number of debt securities with unrealized loss | security | 173 | 173 | 328 | ||
Number of debt securities with unrealized loss, less than 12 months | security | 117 | 117 | 221 | ||
Number of debt securities with unrealized loss, greater than 12 months | security | 56 | 56 | 107 |
Investments (Amortized Cost and
Investments (Amortized Cost and Estimated Fair Value of Investments in Debt and Equity Securities by Category) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Debt securities, Amortized Cost | $ 530,516 | $ 550,268 |
Total debt securities | 533,148 | 545,870 |
Equity Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Equity securities, Amortized Cost | 68,709 | 68,709 |
Total equity securities | 94,012 | 80,896 |
Investments, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Investments, Amortized cost | 602,988 | 622,740 |
Investments, Gross Unrealized Gains | 34,996 | 24,959 |
Investments, Gross Unrealized Losses | (8,239) | (19,785) |
Investments, Fair value | 629,745 | 627,914 |
Mortgage Backed [Member] | ||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Debt securities, Amortized Cost | 9,899 | |
Total debt securities | 9,856 | |
Debt Securities [Member] | ||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Debt securities, Amortized Cost | 530,516 | 550,268 |
Debt securities, Gross Unrealized Gain | 4,339 | 4,266 |
Debt securities, Gross Unrealized Loss | (1,707) | (8,664) |
Total debt securities | 533,148 | 545,870 |
Debt Securities [Member] | U.S. Treasury Securities and Obligations of U.S. Government [Member] | ||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Debt securities, Amortized Cost | 48,369 | 48,609 |
Debt securities, Gross Unrealized Gain | 112 | 5 |
Debt securities, Gross Unrealized Loss | (59) | (508) |
Total debt securities | 48,422 | 48,106 |
Debt Securities [Member] | Corporate Bonds [Member] | ||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Debt securities, Amortized Cost | 223,770 | 243,314 |
Debt securities, Gross Unrealized Gain | 2,813 | 440 |
Debt securities, Gross Unrealized Loss | (240) | (1,602) |
Total debt securities | 226,343 | 242,152 |
Debt Securities [Member] | Collateralized Corporate Bank Loans [Member] | ||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Debt securities, Amortized Cost | 133,840 | 131,779 |
Debt securities, Gross Unrealized Gain | 59 | 19 |
Debt securities, Gross Unrealized Loss | (1,221) | (5,270) |
Total debt securities | 132,678 | 126,528 |
Debt Securities [Member] | Municipal Bonds [Member] | ||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Debt securities, Amortized Cost | 114,638 | 112,574 |
Debt securities, Gross Unrealized Gain | 1,304 | 3,791 |
Debt securities, Gross Unrealized Loss | (93) | (838) |
Total debt securities | 115,849 | 115,527 |
Debt Securities [Member] | Mortgage Backed [Member] | ||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Debt securities, Amortized Cost | 9,899 | 13,992 |
Debt securities, Gross Unrealized Gain | 51 | 11 |
Debt securities, Gross Unrealized Loss | (94) | (446) |
Total debt securities | 9,856 | 13,557 |
Equity Securities [Member] | ||
Equity Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Equity securities, Amortized Cost | 68,709 | 68,709 |
Equity Securities, Gross Unrealized Gains | 30,657 | 20,693 |
Equity Securities, Gross Unrealized Losses | (5,354) | (8,506) |
Total equity securities | 94,012 | 80,896 |
Other Investments [Member] | ||
Equity Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||
Equity securities, Amortized Cost | 3,763 | 3,763 |
Equity Securities, Gross Unrealized Losses | (1,178) | (2,615) |
Total equity securities | $ 2,585 | $ 1,148 |
Investments (Major Categories o
Investments (Major Categories of Net Investment Gains (Losses) on Investments) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Gain (Loss) on Securities [Line Items] | ||||
Investment gains (losses), net | $ 6,817 | $ 533 | $ 18,754 | $ (4,302) |
Debt Securities [Member] | ||||
Gain (Loss) on Securities [Line Items] | ||||
Gain (loss) on investments | 60 | 381 | 4,201 | 366 |
Equity Securities [Member] | ||||
Gain (Loss) on Securities [Line Items] | ||||
Gain (loss) on equity securities | 359 | 359 | ||
Unrealized gains (losses) on equity securities | 5,356 | 553 | 13,116 | (3,904) |
Other Investments [Member] | ||||
Gain (Loss) on Securities [Line Items] | ||||
Unrealized gains (losses) on equity securities | 1,401 | (401) | 1,437 | (764) |
U.S. Treasury Securities and Obligations of U.S. Government [Member] | Debt Securities [Member] | ||||
Gain (Loss) on Securities [Line Items] | ||||
Gain (loss) on investments | ||||
Corporate Bonds [Member] | Debt Securities [Member] | ||||
Gain (Loss) on Securities [Line Items] | ||||
Gain (loss) on investments | (6) | (14) | 17 | (22) |
Collateralized Corporate Bank Loans [Member] | Debt Securities [Member] | ||||
Gain (Loss) on Securities [Line Items] | ||||
Gain (loss) on investments | 21 | 35 | 38 | 47 |
Municipal Bonds [Member] | Debt Securities [Member] | ||||
Gain (Loss) on Securities [Line Items] | ||||
Gain (loss) on investments | 46 | 2 | 4,147 | (19) |
Mortgage Backed [Member] | Debt Securities [Member] | ||||
Gain (Loss) on Securities [Line Items] | ||||
Gain (loss) on investments | $ (1) | $ (1) | $ (1) | $ 1 |
Investments (Summary of Gross U
Investments (Summary of Gross Unrealized Gain (Loss) on Investments) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Investments, Unrealized Loss Position, Fair Value | ||
Investments, Fair Value 12 months or less | $ 126,343 | $ 309,764 |
Investments, Fair Value Longer than 12 months | 93,518 | 169,544 |
Investments, Total Fair Value | 219,861 | 479,308 |
Investments, Unrealized Losses | ||
Investments, Unrealized Losses 12 months or less | (2,674) | (12,496) |
Investments, Unrealized Losses Longer than 12 months | (5,565) | (7,289) |
Investments, Total Unrealized Losses | (8,239) | (19,785) |
Debt Securities [Member] | ||
Debt Securities, Unrealized Loss Position, Fair Value | ||
Debt securities, Fair Value 12 months or less | 118,363 | 277,635 |
Debt securities, Fair Value Longer than 12 months | 86,437 | 165,069 |
Debt securities, Total Fair Value | 204,800 | 442,704 |
Debt securities, Unrealized Losses | ||
Debt securities, Unrealized Losses 12 months or less | (1,076) | (6,182) |
Debt securities, Unrealized Losses Longer than 12 months | (631) | (2,482) |
Debt securities, Total Unrealized Losses | 1,707 | 8,664 |
Debt Securities [Member] | U.S. Treasury Securities and Obligations of U.S. Government [Member] | ||
Debt Securities, Unrealized Loss Position, Fair Value | ||
Debt securities, Fair Value 12 months or less | 18,902 | |
Debt securities, Fair Value Longer than 12 months | 23,216 | 28,201 |
Debt securities, Total Fair Value | 23,216 | 47,103 |
Debt securities, Unrealized Losses | ||
Debt securities, Unrealized Losses 12 months or less | (181) | |
Debt securities, Unrealized Losses Longer than 12 months | (59) | (327) |
Debt securities, Total Unrealized Losses | 59 | 508 |
Debt Securities [Member] | Corporate Bonds [Member] | ||
Debt Securities, Unrealized Loss Position, Fair Value | ||
Debt securities, Fair Value 12 months or less | 18,143 | 117,450 |
Debt securities, Fair Value Longer than 12 months | 36,011 | 100,060 |
Debt securities, Total Fair Value | 54,154 | 217,510 |
Debt securities, Unrealized Losses | ||
Debt securities, Unrealized Losses 12 months or less | (144) | (907) |
Debt securities, Unrealized Losses Longer than 12 months | (96) | (695) |
Debt securities, Total Unrealized Losses | 240 | 1,602 |
Debt Securities [Member] | Collateralized Corporate Bank Loans [Member] | ||
Debt Securities, Unrealized Loss Position, Fair Value | ||
Debt securities, Fair Value 12 months or less | 85,804 | 120,410 |
Debt securities, Fair Value Longer than 12 months | 17,564 | 4,931 |
Debt securities, Total Fair Value | 103,368 | 125,341 |
Debt securities, Unrealized Losses | ||
Debt securities, Unrealized Losses 12 months or less | (871) | (4,938) |
Debt securities, Unrealized Losses Longer than 12 months | (350) | (332) |
Debt securities, Total Unrealized Losses | 1,221 | 5,270 |
Debt Securities [Member] | Municipal Bonds [Member] | ||
Debt Securities, Unrealized Loss Position, Fair Value | ||
Debt securities, Fair Value 12 months or less | 10,898 | 14,281 |
Debt securities, Fair Value Longer than 12 months | 5,735 | 25,891 |
Debt securities, Total Fair Value | 16,633 | 40,172 |
Debt securities, Unrealized Losses | ||
Debt securities, Unrealized Losses 12 months or less | (55) | (96) |
Debt securities, Unrealized Losses Longer than 12 months | (38) | (742) |
Debt securities, Total Unrealized Losses | 93 | 838 |
Debt Securities [Member] | Mortgage Backed [Member] | ||
Debt Securities, Unrealized Loss Position, Fair Value | ||
Debt securities, Fair Value 12 months or less | 3,518 | 6,592 |
Debt securities, Fair Value Longer than 12 months | 3,911 | 5,986 |
Debt securities, Total Fair Value | 7,429 | 12,578 |
Debt securities, Unrealized Losses | ||
Debt securities, Unrealized Losses 12 months or less | (6) | (60) |
Debt securities, Unrealized Losses Longer than 12 months | (88) | (386) |
Debt securities, Total Unrealized Losses | 94 | 446 |
Equity Securities [Member] | ||
Equity Securities, Unrealized Loss Position, Fair Value | ||
Equity securities, Fair Value 12 months or less | 7,952 | 30,981 |
Equity securities, Fair Value Longer than 12 months | 4,524 | 4,475 |
Equity securities, Total Fair Value | 12,476 | 35,456 |
Equity Securities, Unrealized Loss | ||
Equity securities, Unrealized Losses 12 months or less | (1,588) | (3,699) |
Equity securities, Unrealized Losses Longer than 12 months | (3,766) | (4,807) |
Equity securities, Total Unrealized Losses | (5,354) | (8,506) |
Other Investments [Member] | ||
Equity Securities, Unrealized Loss Position, Fair Value | ||
Equity securities, Fair Value 12 months or less | 28 | 1,148 |
Equity securities, Fair Value Longer than 12 months | 2,557 | |
Equity securities, Total Fair Value | 2,585 | 1,148 |
Equity Securities, Unrealized Loss | ||
Equity securities, Unrealized Losses 12 months or less | (10) | |
Equity securities, Unrealized Losses Longer than 12 months | (1,168) | (2,615) |
Equity securities, Total Unrealized Losses | $ (1,178) | $ (2,615) |
Investments (Carrying Value of
Investments (Carrying Value of Other Invested Assets Portfolio) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Investments [Abstract] | ||
Equity warrant | $ 2,585 | $ 1,148 |
Total other investments | $ 2,585 | $ 1,148 |
Investments (Schedule of Amorti
Investments (Schedule of Amortized Cost and Estimated Fair Value of Debt Securities by Contractual Maturities) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost, Due in one year or less | $ 117,306 | |
Amortized Cost, Due after one year through five years | 276,397 | |
Amortized Cost, Due after five years through ten years | 96,047 | |
Amortized Cost, Amortized Cost Due after ten years | 30,867 | |
Debt Maturities, Amortized Cost | 530,516 | $ 550,268 |
Fair Value, Due in one year or less | 117,293 | |
Fair Value, Due after one year through five years | 278,718 | |
Fair Value, Due after five years through ten years | 95,636 | |
Fair Value, Due after ten years | 31,645 | |
Total debt securities | 533,148 | $ 545,870 |
Mortgage Backed [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Debt Maturities, Amortized Cost | 9,899 | |
Total debt securities | $ 9,856 |
Pledged Investments (Narrative)
Pledged Investments (Narrative) (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Pledged Investments [Abstract] | ||
Securities available-for-sale pledged, carrying value | $ 29.7 | $ 29.5 |
Reserves for Unpaid Losses an_3
Reserves for Unpaid Losses and Loss Adjustment Expenses (Activity in the Reserves for Unpaid Losses and Loss Adjustment Expense) (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Reserves for Unpaid Losses and Loss Adjustment Expenses [Abstract] | ||
Balance at January 1 | $ 527,247 | $ 527,100 |
Less reinsurance recoverable | 221,716 | 154,612 |
Net balance at January 1 | 305,531 | 372,488 |
Incurred related to: | ||
Current year | 141,909 | 122,870 |
Prior years | 1,404 | 4,453 |
Total incurred | 143,313 | 127,323 |
Paid related to: | ||
Current year | 38,563 | 28,321 |
Prior years | 107,899 | 140,339 |
Total paid | 146,462 | 168,660 |
Net balance at June 30 | 302,382 | 331,151 |
Plus reinsurance recoverable | 249,161 | 189,401 |
Balance at June 30 | $ 551,543 | $ 520,552 |
Reserves for Unpaid Losses an_4
Reserves for Unpaid Losses and Loss Adjustment Expenses (Causes for Prior Accident Year Reserve Development by Segment) (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||
Total (favorable) net prior year development | $ 1,404 | $ 4,453 |
Specialty Commercial Segment [Member] | ||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||
Total (favorable) net prior year development | 5,203 | 6,861 |
Standard Commercial Segment [Member] | ||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||
Total (favorable) net prior year development | (3,583) | (1,560) |
Personal Segment [Member] | ||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||
Total (favorable) net prior year development | $ (216) | $ (848) |
Share-Based Payment Arrangeme_3
Share-Based Payment Arrangements (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Stock options, Granted | 0 | 0 | ||||||
Long Term Incentive Plan 2005 [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of incentive stock options outstanding | 0 | |||||||
Share-based compensation arrangement by share-based payment award, non-qualified stock options to purchase number of shares | 14,157 | |||||||
Long Term Incentive Plan 2015 [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share-based compensation arrangement by share-based payment award, number of shares authorized | 2,000,000 | 2,000,000 | ||||||
Share-based compensation arrangement by share-based payment award, restricted stock options to purchase number of shares | 383,530 | |||||||
Stock options, Granted | 0 | |||||||
Long Term Incentive Plan 2005 and 2015 [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Unrecognized compensation cost related to non-vested share-based compensation arrangements | $ 0 | $ 0 | ||||||
Prior To 2009 Incentive Stock Options [Member] | Long Term Incentive Plan 2005 [Member] | First Anniversary [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Percentage | 10.00% | 10.00% | ||||||
Prior To 2009 Incentive Stock Options [Member] | Long Term Incentive Plan 2005 [Member] | Second Anniversary [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Percentage | 20.00% | 20.00% | ||||||
Prior To 2009 Incentive Stock Options [Member] | Long Term Incentive Plan 2005 [Member] | Third Anniversary [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Percentage | 30.00% | 30.00% | ||||||
Prior To 2009 Incentive Stock Options [Member] | Long Term Incentive Plan 2005 [Member] | Fourth Anniversary [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Percentage | 40.00% | 40.00% | ||||||
Prior To 2009 Incentive Stock Options [Member] | Long Term Incentive Plan 2005 [Member] | Minimum [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Stock-based compensation incentive stock options grant under incentive plan termination period | 5 years | |||||||
Prior To 2009 Incentive Stock Options [Member] | Long Term Incentive Plan 2005 [Member] | Maximum [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Stock-based compensation incentive stock options grant under incentive plan termination period | 10 years | |||||||
Incentive Stock Options 2010 [Member] | Long Term Incentive Plan 2005 [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Stock-based compensation incentive stock options grant under incentive plan termination period | 10 years | |||||||
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% | |||||||
Stock-based compensation incentive stock options grant under incentive plan 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] | ||||||||
Stock-based compensation incentive stock options grant under incentive plan termination period | 10 years | |||||||
Number of options vested or expected to vest | 200,000 | 200,000 | ||||||
Restricted Stock Units (RSUs) [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Unrecognized compensation cost related to non-vested share-based compensation arrangements | $ 1,400 | $ 1,400 | ||||||
Employee Service Share-based Compensation Nonvested Awards, Total Compensation Cost Expected To Recognize During Remainder Of Year | 300 | |||||||
Employee Service Share-based Compensation Nonvested Awards, Total Compensation Cost Expected to Recognize During Remainder of Year Two | 500 | |||||||
Employee Service Share-based Compensation Nonvested Awards, Total Compensation Cost Expected to Recognize During Year Three | 100 | |||||||
Employee Service Share-based Compensation Nonvested Awards, Total Compensation Cost Expected to Recognized | $ 900 | |||||||
Other than options, forfeited | 83,210 | 182,743 | ||||||
Vested | 8,198 | |||||||
Allocated share-based compensation expense | 140 | $ (43) | $ 197 | $ 1 | ||||
Income tax benefit of share-based payments recognized in income | $ 29 | $ 9 | $ 41 | |||||
Restricted Stock Units (RSUs) [Member] | Minimum [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Percentage of restricted stock units granted as result of meeting growth rates | 50.00% | 50.00% | ||||||
Restricted Stock Units (RSUs) [Member] | Maximum [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Percentage of restricted stock units granted as result of meeting growth rates | 150.00% | 150.00% | ||||||
Restricted Stock Units (RSUs) [Member] | Long Term Incentive Plan 2015 [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Other than options, grant date fair value | $ 10.87 | $ 10.20 | $ 11.41 | $ 11.10 |
Share-Based Payment Arrangeme_4
Share-Based Payment Arrangements (Summary of the Status of Stock Options) (Details) - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Share-Based Payment Arrangements [Abstract] | ||
Stock Options, Outstanding at January 1, 2019 | 244,157 | |
Stock options, Granted | 0 | 0 |
Stock Options, Exercised | (230,000) | |
Stock Options, Forfeited or Expired | ||
Stock Options, Outstanding at June 30,2019 | 14,157 | |
Stock Options, Exercisable at June 30, 2019 | 14,157 | |
Weighted Average Exercise Price, Outstanding at January 1, 2019 | $ 6.63 | |
Weighted Average Exercise Price, Exercised | 6.61 | |
Weighted Average Exercise Price, Forfeited or Expired | ||
Weighted Average Exercise Price, Outstanding at June 30, 2019 | 6.99 | |
Weighted Average Exercise Price, Exercisable at June 30, 2019 | $ 6.99 | |
Average Remaining Contractual Term, Outstanding at June 30, 2019 | 2 years 6 months | |
Average Remaining Contractual Term, Exercisable at June 30, 2019 | 2 years 6 months | |
Aggregate Intrinsic Value, Outstanding at June 30, 2019 | $ 102 | |
Aggregate Intrinsic Value, Exercisable at June 30, 2019 | $ 102 |
Share-Based Payment Arrangeme_5
Share-Based Payment Arrangements (Schedule of Options, Grants in Period and Grant Date Intrinsic Value) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Cost of share-based payments (non-cash) | $ 197 | $ 1 | ||
Employee Stock Option [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Intrinsic value of options exercised | $ 122 | 845 | 122 | |
Cost of share-based payments (non-cash) | ||||
Income tax benefit of share-based payments recognized in income |
Share-Based Payment Arrangeme_6
Share-Based Payment Arrangements (Summary of the Status of Restricted Stock Units) (Details) - Restricted Stock Units (RSUs) [Member] - shares | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Nonvested at January 1 | 338,897 | 385,779 |
Vested | (8,198) | |
Forfeited | (83,210) | (182,743) |
Nonvested at June 30 | 255,687 | 194,838 |
Segment Information (Schedule o
Segment Information (Schedule of Business Segment Information) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Revenues [Abstract] | ||||
Revenues | $ 120,903 | $ 98,125 | $ 239,024 | $ 191,466 |
Pre-Tax Income (Loss) [Abstract] | ||||
Pre-tax income (loss) | 16,484 | 6,372 | 35,402 | 7,181 |
Specialty Commercial Segment [Member] | ||||
Revenues [Abstract] | ||||
Revenues | 73,592 | 72,081 | 141,559 | 145,205 |
Pre-Tax Income (Loss) [Abstract] | ||||
Pre-tax income (loss) | 10,427 | 8,770 | 18,395 | 18,528 |
Standard Commercial Segment [Member] | ||||
Revenues [Abstract] | ||||
Revenues | 17,310 | 19,247 | 35,683 | 38,122 |
Pre-Tax Income (Loss) [Abstract] | ||||
Pre-tax income (loss) | 2,057 | 2,656 | 3,564 | 3,975 |
Personal Segment [Member] | ||||
Revenues [Abstract] | ||||
Revenues | 23,116 | 7,916 | 42,599 | 15,536 |
Pre-Tax Income (Loss) [Abstract] | ||||
Pre-tax income (loss) | 2,441 | (1) | 4,014 | (23) |
Corporate [Member] | ||||
Revenues [Abstract] | ||||
Revenues | 6,885 | (1,119) | 19,183 | (7,397) |
Pre-Tax Income (Loss) [Abstract] | ||||
Pre-tax income (loss) | $ 1,559 | $ (5,053) | $ 9,429 | $ (15,299) |
Segment Information (Schedule_2
Segment Information (Schedule of Additional Business Segment Information) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Segment Reporting Information [Line Items] | ||
Assets | $ 1,405,768 | $ 1,264,894 |
Specialty Commercial Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Assets | 1,005,810 | 858,262 |
Standard Commercial Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Assets | 184,101 | 158,881 |
Personal Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Assets | 170,348 | 226,431 |
Corporate [Member] | ||
Segment Reporting Information [Line Items] | ||
Assets | $ 45,509 | $ 21,320 |
Reinsurance (Schedule of Reinsu
Reinsurance (Schedule of Reinsurance Ceded and Recoveries) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Reinsurance [Abstract] | ||||
Ceded earned premiums | $ 76,309 | $ 68,635 | $ 146,455 | $ 130,264 |
Reinsurance recoveries | $ 58,975 | $ 43,989 | $ 107,564 | $ 93,427 |
Revolving Credit Facility (Narr
Revolving Credit Facility (Narrative) (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Facility A Revolving Credit Facility [Member] | |
Line of Credit Facility [Line Items] | |
Line of credit facility, maximum borrowing capacity | $ 15 |
Line of credit facility, unused capacity, commitment fee percentage | 0.25% |
Line of credit facility, amount outstanding | $ 0 |
Facility A Revolving Credit Sub-Facility [Member] | |
Line of Credit Facility [Line Items] | |
Line of credit facility, maximum borrowing capacity | $ 5 |
Line of credit facility, unused capacity, commitment fee percentage | 1.00% |
Facility B Revolving Credit Facility [Member] | |
Line of Credit Facility [Line Items] | |
Line of credit facility, maximum borrowing capacity | $ 30 |
Line of credit facility, unused capacity, commitment fee percentage | 0.25% |
Line of credit facility, amount outstanding | $ 30 |
London Interbank Offered Rate (LIBOR) [Member] | Facility A Revolving Credit Facility [Member] | |
Line of Credit Facility [Line Items] | |
Line of credit facility, interest rate during period | 2.50% |
London Interbank Offered Rate (LIBOR) [Member] | Facility B Revolving Credit Facility [Member] | |
Line of Credit Facility [Line Items] | |
Line of credit facility, unused capacity, commitment fee percentage | 3.00% |
Subordinated Debt Securities (N
Subordinated Debt Securities (Narrative) (Details) - USD ($) $ in Millions | Aug. 23, 2007 | Jun. 21, 2005 | Jun. 30, 2019 |
Hallmark Statutory Trust I [Member] | Subordinated Debt Due In 2035 [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% | 5.66% | |
Debt instrument, interest rate fixed to floating date | Jun. 15, 2015 | ||
Debt instrument, maturity date | Jun. 15, 2015 | ||
Debt instrument, description of variable rate basis | interest adjusts quarterly to the three-month LIBOR rate plus 3.25 percentage points | ||
Hallmark Statutory Trust II [Member] | Subordinated Debt Due In 2037 [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% | 5.31% | |
Debt instrument, interest rate fixed to floating date | Sep. 15, 2017 | ||
Debt instrument, maturity date | Sep. 15, 2017 | ||
Debt instrument, description of variable rate basis | three-month LIBOR rate plus 2.90 percentage points | ||
London Interbank Offered Rate (LIBOR) [Member] | Hallmark Statutory Trust I [Member] | Subordinated Debt Due In 2035 [Member] | |||
Subordinated Borrowing [Line Items] | |||
Debt instrument, basis spread on variable rate | 3.25% | ||
London Interbank Offered Rate (LIBOR) [Member] | Hallmark Statutory Trust II [Member] | Subordinated Debt Due In 2037 [Member] | |||
Subordinated Borrowing [Line Items] | |||
Subordinated borrowing, interest rate | 2.90% |
Deferred Policy Acquisition C_3
Deferred Policy Acquisition Costs (Deferred Amortized Policy Acquisition Costs) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Document and Entity Information [Abstract] | ||||
Deferred, additions | $ 6,306 | $ 16,671 | ||
Deferred, disposition | $ (35,871) | $ (47,547) | ||
Amortized | 34,788 | (8,242) | 41,530 | (18,615) |
Net | $ (1,083) | $ (1,936) | $ (6,017) | $ (1,944) |
Earnings Per Share (Narrative)
Earnings Per Share (Narrative) (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Earnings per Share [Abstract] | ||||
Antidilutive securities excluded from computation of earnings per share | 0 | 62,500 | 0 | 62,500 |
Earnings Per Share (Schedule of
Earnings Per Share (Schedule of Earnings Per Share, Basic and Diluted) (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Earnings per Share [Abstract] | ||||
Weighted average shares - basic | 18,123 | 18,067 | 18,090 | 18,116 |
Effect of dilutive securities | 128 | 107 | 160 | 114 |
Weighted average shares - assuming dilution | 18,251 | 18,174 | 18,250 | 18,230 |
Net Periodic Pension Cost (Sche
Net Periodic Pension Cost (Schedule of Net Benefit Costs) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Net Periodic Pension Cost [Abstract] | ||||
Interest cost | $ 114 | $ 106 | $ 227 | $ 212 |
Amortization of net loss | 36 | 26 | 72 | 53 |
Expected return on plan assets | (150) | (174) | (299) | (347) |
Net periodic pension cost | (42) | (82) | ||
Contributed amount |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Income Taxes [Abstract] | ||
Effective income tax rate, continuing operations | 20.80% | 20.10% |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information (Reconciliation of Cash, Cash Equivalents and Restricted Cash to Statement of Cash Flows) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Dec. 31, 2017 |
Supplemental Cash Flow Information [Abstract] | ||||
Cash and cash equivalents | $ 67,670 | $ 35,594 | $ 79,583 | |
Restricted cash | 3,486 | 4,877 | 3,078 | |
Total cash, cash equivalents and restricted cash shown in the statement of cash flows | $ 71,156 | $ 40,471 | $ 82,661 | $ 67,633 |
Supplemental Cash Flow Inform_4
Supplemental Cash Flow Information (Supplemental Cash Flow Information) (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Supplemental Cash Flow Information [Abstract] | ||
Interest paid | $ 2,527 | $ 2,145 |
Income taxes paid (recovered) | 2,848 | (5,287) |
Receivable for securities related to investment disposals | 2,581 | 3,780 |
Payable for securities related to investment purchases | $ 3,167 | $ 6,706 |
Changes in Accumulated Other _3
Changes in Accumulated Other Comprehensive Income Balances (Schedule of Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Beginning Balance | $ (6,660) | |||||
Other comprehensive income: | ||||||
Change in net actuarial gain | $ 37 | $ 26 | 72 | $ 53 | ||
Tax effect on change in net actuarial gain | (8) | (5) | (15) | (11) | ||
Unrealized holding gains (losses) arising during the period | 3,460 | 2,321 | 11,233 | 1,926 | ||
Tax effect on unrealized gains arising during the period | (727) | (487) | (2,359) | (404) | ||
Reclassification adjustment for realized (gain) losses included in investment gains and losses | (60) | (381) | (4,201) | (366) | ||
Tax effect on reclassification adjustment for gains (losses) included in income tax expense | 13 | 80 | 883 | 77 | ||
Other comprehensive income, net of tax | 2,715 | 1,554 | 5,613 | 1,275 | ||
Reclassification of certain tax effects from accumulated other comprehensive income at January 1,2018 | $ (2,600) | |||||
Ending Balance | (1,047) | (1,047) | ||||
Pension Liability [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Beginning Balance | (3,334) | (2,310) | ||||
Other comprehensive income: | ||||||
Change in net actuarial gain | 72 | 53 | ||||
Tax effect on change in net actuarial gain | (15) | (11) | ||||
Other comprehensive income, net of tax | 57 | 42 | ||||
Reclassification of certain tax effects from accumulated other comprehensive income at January 1,2018 | $ (569) | |||||
Ending Balance | (3,277) | (2,837) | (3,277) | (2,837) | ||
Unrealized Gain (Loss) [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Beginning Balance | (3,326) | 14,544 | ||||
Other comprehensive income: | ||||||
Unrealized holding gains (losses) arising during the period | 11,233 | 1,926 | ||||
Tax effect on unrealized gains arising during the period | (2,359) | (404) | ||||
Reclassification adjustment for realized (gain) losses included in investment gains and losses | (4,201) | (366) | ||||
Tax effect on reclassification adjustment for gains (losses) included in income tax expense | 883 | 77 | ||||
Other comprehensive income, net of tax | 5,556 | 1,233 | ||||
Reclassification of certain tax effects from accumulated other comprehensive income at January 1,2018 | 3,188 | |||||
Ending Balance | 2,230 | 1,972 | 2,230 | 1,972 | ||
Unrealized Gain (Loss) [Member] | Accounting Standards Update 2016-01 [Member] | ||||||
Other comprehensive income: | ||||||
Cumulative effect of adoption of updated accounting guidance for equity financial instruments at January 1,2018 | (16,993) | |||||
Accumulated Other Comprehensive Income (Loss) [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Beginning Balance | (6,660) | 12,234 | ||||
Other comprehensive income: | ||||||
Change in net actuarial gain | 72 | 53 | ||||
Tax effect on change in net actuarial gain | (15) | (11) | ||||
Unrealized holding gains (losses) arising during the period | 11,233 | 1,926 | ||||
Tax effect on unrealized gains arising during the period | (2,359) | (404) | ||||
Reclassification adjustment for realized (gain) losses included in investment gains and losses | (4,201) | (366) | ||||
Tax effect on reclassification adjustment for gains (losses) included in income tax expense | 883 | 77 | ||||
Other comprehensive income, net of tax | 5,613 | 1,275 | ||||
Reclassification of certain tax effects from accumulated other comprehensive income at January 1,2018 | 2,619 | |||||
Ending Balance | $ (1,047) | $ (865) | $ (1,047) | $ (865) | ||
Accumulated Other Comprehensive Income (Loss) [Member] | Accounting Standards Update 2016-01 [Member] | ||||||
Other comprehensive income: | ||||||
Cumulative effect of adoption of updated accounting guidance for equity financial instruments at January 1,2018 | $ (16,993) |
Leases (Narrative) (Details)
Leases (Narrative) (Details) | 6 Months Ended |
Jun. 30, 2019 | |
Lessee, Lease, Description [Line Items] | |
Lease, Practical Expedients | true |
Options to extend | true |
Minimum [Member] | |
Lessee, Lease, Description [Line Items] | |
Remaining lease term | 1 year |
Maximum [Member] | |
Lessee, Lease, Description [Line Items] | |
Remaining lease term | 13 years |
Leases (Components of Lease Exp
Leases (Components of Lease Expense and Other Lease Information) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2019 | Jun. 30, 2019 | |
Leases [Abstract] | ||
Operating Lease Cost | $ 816 | $ 1,356 |
Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases | 552 | 1,103 |
Right-of-use assets obtained in exchange for new operating lease liabilities | ||
Short-term lease payments | $ 16 |
Leases (Component of Lease and
Leases (Component of Lease and Other Information) (Details) $ in Thousands | Jun. 30, 2019USD ($) |
Leases [Abstract] | |
Operating lease right-of-use assets | $ 17,109 |
Operating lease liabilities | $ 17,619 |
Weighted-average remaining lease term - operating leases | 10 years 8 months 12 days |
Weighted-average discount rate - operating leases | 5.88% |
Leases (Maturities) (Details)
Leases (Maturities) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Future minimum lease payments under non-cancellable leases as of June30, 2019 | ||
2019 | $ 786 | |
2020 | 2,473 | |
2021 | 2,172 | |
2022 | 2,171 | |
2023 | 1,885 | |
Thereafter | 15,266 | |
Total future minimum lease payments | 24,753 | |
Less imputed interest | (7,134) | |
Operating lease liabilities | $ 17,619 | |
Future minimum lease payments under non-cancellable leases as of December 31, 2018 | ||
2019 | $ 1,889 | |
2020 | 2,473 | |
2021 | 2,172 | |
2022 | 2,171 | |
2023 | 1,885 | |
Thereafter | 15,266 | |
Total future minimum lease payments | $ 25,856 |