Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Oct. 31, 2013 | |
Document And Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Sep-13 | ' |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Entity Registrant Name | 'UNIVERSAL INSURANCE HOLDINGS, INC. | ' |
Entity Central Index Key | '0000891166 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 35,111,172 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
ASSETS | ' | ' |
Cash and cash equivalents | $137,286 | $347,392 |
Restricted cash and cash equivalents | 2,600 | 33,009 |
Fixed maturities (trading), at fair value | ' | 4,009 |
Equity securities (trading), at fair value | ' | 85,041 |
Fixed maturities (available for sale), at fair value | 298,504 | ' |
Equity securities (available for sale), at fair value | 70,862 | ' |
Prepaid reinsurance premiums | 250,506 | 239,921 |
Reinsurance recoverable | 74,900 | 89,191 |
Reinsurance receivable, net | 24,268 | 24,334 |
Premiums receivable, net | 52,399 | 50,125 |
Receivable from securities sold | ' | 1,096 |
Other receivables | 3,446 | 2,017 |
Property and equipment, net | 9,300 | 8,968 |
Deferred policy acquisition costs, net | 16,953 | 17,282 |
Income taxes recoverable | 14,498 | 2,594 |
Deferred income tax asset, net | 13,756 | 19,178 |
Other assets | 3,066 | 1,578 |
Total assets | 972,344 | 925,735 |
LIABILITIES: | ' | ' |
Unpaid losses and loss adjustment expenses | 157,374 | 193,241 |
Unearned premiums | 407,443 | 388,071 |
Advance premium | 23,692 | 15,022 |
Accounts payable | 3,863 | 4,368 |
Bank overdraft | 22,209 | 25,994 |
Payable for securities purchased | ' | 1,275 |
Reinsurance payable, net | 118,573 | 85,259 |
Income taxes payable | 1,450 | 699 |
Other liabilities and accrued expenses | 33,982 | 28,071 |
Long-term debt | 37,356 | 20,221 |
Total liabilities | 805,942 | 762,221 |
Commitments and Contingencies (Note 13) | ' | ' |
STOCKHOLDERS' EQUITY: | ' | ' |
Cumulative convertible preferred stock, $.01 par value Authorized shares - 1,000 Issued shares - 64 and 108 Outstanding shares - 64 and 108 Minimum liquidation preference, $2.66 per share | 1 | 1 |
Common stock, $.01 par value Authorized shares - 55,000 Issued shares - 43,387 and 41,889 Outstanding shares - 35,111 and 40,871 | 434 | 419 |
Treasury shares, at cost - 8,276 and 1,018 | -35,467 | -3,101 |
Additional paid-in capital | 40,631 | 38,684 |
Accumulated other comprehensive income, net of taxes | -488 | 0 |
Retained earnings | 161,291 | 127,511 |
Total stockholders' equity | 166,402 | 163,514 |
Total liabilities and stockholders' equity | $972,344 | $925,735 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, except Per Share data, unless otherwise specified | ||
Statement Of Financial Position [Abstract] | ' | ' |
Cumulative convertible preferred stock, par value | $0.01 | $0.01 |
Cumulative convertible preferred stock, shares authorized | 1,000 | 1,000 |
Cumulative convertible preferred stock, shares issued | 64 | 108 |
Cumulative convertible preferred stock, shares outstanding | 64 | 108 |
Cumulative convertible preferred stock, minimum liquidation preference | $2.66 | $2.66 |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 55,000 | 55,000 |
Common stock, shares issued | 43,387 | 41,889 |
Common stock, shares outstanding | 35,111 | 40,871 |
Treasury stock, shares | 8,276 | 1,018 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Income (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
PREMIUMS EARNED AND OTHER REVENUES | ' | ' | ' | ' | |
Direct premiums written | $186,079 | $192,986 | $610,164 | $605,557 | |
Ceded premiums written | -124,961 | -132,776 | -400,175 | -398,643 | |
Net premiums written | 61,118 | 60,210 | 209,989 | 206,914 | |
Change in net unearned premium | 7,809 | -698 | -8,787 | -43,068 | |
Premiums earned, net | 68,927 | 59,512 | 201,202 | 163,846 | |
Net investment income (expense) | 382 | 215 | 530 | 163 | |
Net realized gains (losses) on investments | 56 | -3,142 | -15,982 | -12,296 | |
Net change in unrealized gains (losses) on investments | 15 | 8,091 | 7,912 | 11,490 | |
Net foreign currency gains (losses) on investments | ' | ' | ' | 23 | |
Commission revenue | 4,180 | 4,822 | 14,437 | 15,494 | |
Policy fees | 3,231 | 3,461 | 10,737 | 11,434 | |
Other revenue | 1,577 | 1,578 | 4,743 | 4,558 | |
Total premiums earned and other revenues | 78,368 | 74,537 | 223,579 | 194,712 | |
OPERATING COSTS AND EXPENSES | ' | ' | ' | ' | |
Losses and loss adjustment expenses | 28,335 | 36,301 | 80,018 | 91,912 | |
General and administrative expenses | 24,920 | 24,262 | 68,998 | 59,605 | |
Total operating costs and expenses | 53,255 | 60,563 | 149,016 | 151,517 | |
INCOME BEFORE INCOME TAXES | 25,113 | 13,974 | 74,563 | 43,195 | |
Income taxes, current | 9,142 | 624 | 25,440 | 10,484 | |
Income taxes, deferred | 1,564 | 5,094 | 5,728 | 6,805 | |
Income taxes, net | 10,706 | 5,718 | 31,168 | 17,289 | |
NET INCOME | 14,407 | 8,256 | 43,395 | 25,906 | |
Basic earnings per common share | $0.43 | $0.21 | $1.18 | $0.65 | |
Weighted average common shares outstanding - Basic | 33,658 | 39,679 | 36,628 | 39,579 | |
Fully diluted earnings per common share | $0.40 | $0.20 | $1.13 | $0.64 | |
Weighted average common shares outstanding - Diluted | 35,611 | 40,450 | 38,352 | 40,458 | |
Cash dividend declared per common share | $0.10 | $0.08 | $0.26 | $0.26 | |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ' | ' | ' | ' | |
Net income | 14,407 | 8,256 | 43,395 | 25,906 | |
Change in net unrealized gains (losses) on available for sale investments, net of tax | 2,120 | ' | -488 | [1] | ' |
Comprehensive income (loss) | $16,527 | $8,256 | $42,907 | $25,906 | |
[1] | Represents change in fair value of AFS investments for the period presented, net of tax benefit of $306 thousand. |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statement of Stockholders' Equity (USD $) | Total | Common Stock [Member] | Preferred Stock [Member] | Additional Paid-In Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income [Member] | Treasury Stock [Member] | |
In Thousands | ||||||||
Beginning Balance at Dec. 31, 2012 | $163,514 | $419 | $1 | $38,684 | $127,511 | ' | ($3,101) | |
Beginning balance, shares at Dec. 31, 2012 | ' | 41,889 | 108 | ' | ' | ' | -1,018 | |
Conversion of preferred stock | ' | 2 | ' | -2 | ' | ' | ' | |
Conversion of preferred stock, shares | ' | 220 | -44 | ' | ' | ' | ' | |
Stock option exercises | -2,728 | 21 | ' | 8,279 | ' | ' | -11,028 | |
Stock option exercises, shares | 2,060 | 2,060 | ' | ' | ' | ' | ' | |
Restricted stock awards | ' | 10 | ' | -10 | ' | ' | ' | |
Restricted stock awards, shares | ' | 1,000 | ' | ' | ' | ' | ' | |
Purchases of treasury stock | -32,366 | ' | ' | ' | ' | ' | -32,366 | |
Retirement of treasury shares | ' | -18 | ' | -11,010 | ' | ' | 11,028 | |
Retirement of treasury shares, shares | ' | -1,782 | ' | ' | ' | ' | ' | |
Stock-based compensation | 4,638 | ' | ' | 4,638 | ' | ' | ' | |
Net income | 43,395 | ' | ' | ' | 43,395 | ' | ' | |
Change in net unrealized gains (losses) | [1] | -488 | ' | ' | ' | ' | -488 | ' |
Excess tax benefit (shortfall), net | [2] | 52 | ' | ' | 52 | ' | ' | ' |
Declaration of dividends | -9,615 | ' | ' | ' | -9,615 | ' | ' | |
Ending Balance at Sep. 30, 2013 | $166,402 | $434 | $1 | $40,631 | $161,291 | ($488) | ($35,467) | |
Ending balance, shares at Sep. 30, 2013 | ' | 43,387 | 64 | ' | ' | ' | -8,276 | |
[1] | Represents change in fair value of AFS investments for the period presented, net of tax benefit of $306 thousand. | |||||||
[2] | Excess tax benefits are related to stock-based compensation. |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statement of Stockholders' Equity (Parenthetical) (USD $) | 3 Months Ended | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2013 |
Statement Of Stockholders Equity [Abstract] | ' | ' |
Tax benefit (expense) from AFS securities adjustment | ($1,331) | $306 |
Condensed_Consolidated_Stateme3
Condensed Consolidated Statements of Cash Flows (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Cash flows from operating activities: | ' | ' |
Net income | $43,395 | $25,906 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Bad debt expense | 363 | 224 |
Depreciation | 745 | 625 |
Amortization of stock-based compensation | 4,639 | 2,559 |
Amortization of original issue discount | 349 | ' |
Accretion of deferred credit | -349 | ' |
Net realized (gains) losses on investments | 15,982 | 12,296 |
Net change in unrealized (gains) losses on investments | -7,912 | -11,490 |
Loss (gain) on disposal of assets | 5 | ' |
Net foreign currency (gains) losses on investments | ' | -23 |
Amortization of premium/accretion of discount, net | 1,063 | -5 |
Deferred income taxes | 5,728 | 6,806 |
Excess tax (benefits) shortfall from stock-based compensation | -52 | 1,765 |
Net change in assets and liabilities relating to operating activities: | ' | ' |
Restricted cash and cash equivalents | 30,409 | -16,823 |
Prepaid reinsurance premiums | -10,585 | -5,804 |
Reinsurance recoverables | 14,291 | 4,906 |
Reinsurance receivables, net | 66 | 24,677 |
Premiums receivable, net | -2,634 | -10,414 |
Accrued investment income | -898 | 274 |
Other receivables | -535 | -766 |
Income taxes recoverable | -11,904 | -406 |
Deferred policy acquisition costs, net | 329 | -5,023 |
Purchase of trading securities | -26,009 | -254,270 |
Proceeds from sales of trading securities | 102,661 | 310,943 |
Other assets | -1,453 | 362 |
Unpaid losses and loss adjustment expenses | -35,867 | -14,541 |
Unearned premiums | 19,372 | 48,872 |
Accounts payable | -505 | -62 |
Reinsurance payable, net | 33,314 | 36,437 |
Income taxes payable | 803 | -14,482 |
Other liabilities and accrued expenses | 4,124 | 3,274 |
Advance premium | 8,670 | -922 |
Net cash provided by (used in) operating activities | 187,605 | 144,895 |
Cash flows from investing activities: | ' | ' |
Proceeds from sale of property and equipment | 5 | 18 |
Purchase of property and equipment | -1,086 | -2,365 |
Purchases of equity securities, available for sale | -70,351 | ' |
Purchases of fixed maturities, available for sale | -306,169 | ' |
Proceeds from sales of equity securities, available for sale | 390 | ' |
Proceeds from sales of fixed maturities, available for sale | ' | ' |
Maturities of fixed maturity securities, available for sale | 9,021 | ' |
Net cash provided by (used in) investing activities | -368,190 | -2,347 |
Cash flows from financing activities: | ' | ' |
Bank overdraft increase (decrease) | -3,785 | 3,713 |
Preferred stock dividend | -15 | -264 |
Common stock dividend | -9,576 | -7,225 |
Issuance of common stock | ' | 207 |
Purchase of treasury stock | -32,365 | ' |
Payments related to tax withholding for share-based compensation | -2,728 | -121 |
Excess tax benefits (shortfall) from stock-based compensation | 51 | -1,765 |
Repayment of debt | -1,103 | -1,103 |
Proceeds from borrowings | 20,000 | ' |
Net cash provided by (used in) financing activities | -29,521 | -6,558 |
Net increase (decrease) in cash and cash equivalents | -210,106 | 135,990 |
Cash and cash equivalents at beginning of period | 347,392 | 229,685 |
Cash and cash equivalents at end of period | 137,286 | 365,675 |
Supplemental cash and non-cash flow disclosures: | ' | ' |
Interest paid | 742 | 327 |
Income taxes paid | 36,564 | 22,453 |
Non-cash transfer of investments from trading to available for sale portfolio | $4,004 | ' |
Nature_of_Operations_and_Basis
Nature of Operations and Basis of Presentation | 9 Months Ended | |
Sep. 30, 2013 | ||
Accounting Policies [Abstract] | ' | |
Nature of Operations and Basis of Presentation | ' | |
1 | Nature of Operations and Basis of Presentation | |
Nature of Operations | ||
Universal Insurance Holdings, Inc. (“UIH”) is a Delaware corporation originally incorporated as Universal Heights, Inc. in November 1990. UIH and its wholly-owned subsidiaries (collectively, the “Company”) are a vertically integrated insurance holding company performing all aspects of insurance underwriting, distribution and claims. Through its wholly-owned subsidiaries, including Universal Property & Casualty Insurance Company (“UPCIC”) and American Platinum Property and Casualty Insurance Company (“APPCIC”), collectively referred to as the “Insurance Entities”, the Company is principally engaged in the property and casualty insurance business offered primarily through a network of independent agents. Risk from catastrophic losses is managed through the use of reinsurance agreements. The Company’s primary product is homeowners insurance offered in seven states as of September 30, 2013, including Florida, which comprises the vast majority of the Company’s in-force policies. See “—Note 5 (Insurance Operations)” for more information regarding the Company’s insurance operations. | ||
The Company generates revenues primarily from the collection of premiums and the investment of available funds in excess of those retained for claims-paying obligations and insurance operations. Other significant sources of revenue include commissions collected from reinsurers and policy fees collected from policyholders through the Company’s affiliated managing general agent. | ||
Basis of Presentation | ||
The Company has prepared the accompanying unaudited Condensed Consolidated Financial Statements (“Financial Statements”) in accordance with the rules and regulations of the United States Securities and Exchange Commission (“SEC”) for interim financial information. Accordingly, they do not include all of the information and footnotes required by United States Generally Accepted Accounting Principles (“GAAP”) for complete financial statements. Therefore, the Financial Statements should be read in conjunction with the audited Consolidated Financial Statements contained in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2012, filed with the SEC on March 8, 2013. The condensed consolidated balance sheet at December 31, 2012, was derived from audited financial statements, but does not include all disclosures required by GAAP. In the opinion of management, all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation have been included in the Financial Statements. The results for interim periods do not necessarily indicate the results that may be expected for any other interim period or for the full year. | ||
The Financial Statements include the accounts of UIH and its wholly owned subsidiaries. All material intercompany balances and transactions have been eliminated in consolidation. | ||
Management must make estimates and assumptions that affect amounts reported in the Company’s Financial Statements and in disclosures of contingent assets and liabilities. Actual results could differ from those estimates. |
Significant_Accounting_Policie
Significant Accounting Policies | 9 Months Ended | ||||||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||||||||||||||||||||
Significant Accounting Policies | ' | ||||||||||||||||||||||||||||||||
2 | Significant Accounting Policies | ||||||||||||||||||||||||||||||||
The Company reported Significant Accounting Policies in its Annual Report on Form 10-K for the year ended December 31, 2012. The following are new or revised disclosures or disclosures required on a quarterly basis. | |||||||||||||||||||||||||||||||||
Concentrations of Credit Risk. The Company is exposed to concentrations of credit risk, consisting principally of cash and cash equivalents, restricted cash and cash equivalents, debt securities, premiums receivable, prepaid reinsurance premiums, reinsurance receivable and reinsurance recoverable. | |||||||||||||||||||||||||||||||||
The Company maintains depository relationships with SunTrust Bank, Wells Fargo Bank N.A., Deutsche Bank Securities, Inc., and State Street Bank and Trust Company and invests excess cash with custodial institutions that invest primarily in money market accounts consisting of or collateralized by short-term U.S. Treasury securities and other U.S. government guaranteed securities. These accounts are held primarily by SunTrust Bank, Deutsche Bank Securities, Inc., and State Street Bank and Trust Company. The Company regularly evaluates the financial strength of the institutions with which it maintains depository relationships. The following table presents the ratings from each of the rating agencies: | |||||||||||||||||||||||||||||||||
Current Ratings | |||||||||||||||||||||||||||||||||
Institution | Standard and | Moody’s | |||||||||||||||||||||||||||||||
Poor’s Rating | Investors | ||||||||||||||||||||||||||||||||
Services | Service, Inc. | ||||||||||||||||||||||||||||||||
Sun Trust Bank | BBB+ | A3 | |||||||||||||||||||||||||||||||
Wells Fargo Bank N.A. | AA- | Aa3 | |||||||||||||||||||||||||||||||
Deutsche Bank Securities, Inc. | A | A2 | |||||||||||||||||||||||||||||||
State Street Bank and Trust Company | AA- | Aa2 | |||||||||||||||||||||||||||||||
Restricted cash and cash equivalents are maintained in money market accounts consisting of U.S. Treasury and government agency securities. | |||||||||||||||||||||||||||||||||
The following table presents the amount of cash and cash equivalents as of the periods presented (in thousands): | |||||||||||||||||||||||||||||||||
Cash and cash equivalents | |||||||||||||||||||||||||||||||||
As of September 30, 2013 | As of December 31, 2012 | ||||||||||||||||||||||||||||||||
Institution | Cash | Money | Total | % by | Cash | Money | Total | % by | |||||||||||||||||||||||||
Market Funds | institution | Market Funds | institution | ||||||||||||||||||||||||||||||
U.S. Bank IT&C | $ | — | $ | — | $ | — | — | $ | — | $ | 40,463 | $ | 40,463 | 11.6 | % | ||||||||||||||||||
SunTrust Bank | 528 | 3,696 | 4,224 | 3.1 | % | 773 | 1,055 | 1,828 | 0.5 | % | |||||||||||||||||||||||
SunTrust Bank Escrow Services | — | 93,794 | 93,794 | 68.3 | % | — | 300,843 | 300,843 | 86.6 | % | |||||||||||||||||||||||
Wells Fargo Bank N.A. | 2,701 | — | 2,701 | 2 | % | 1,991 | 3 | 1,994 | 0.6 | % | |||||||||||||||||||||||
Deutsche Bank Securities, Inc. | — | 21,042 | 21,042 | 15.3 | % | 1,796 | 468 | 2,264 | 0.7 | % | |||||||||||||||||||||||
State Street Bank and Trust Company | — | 14,800 | 14,800 | 10.8 | % | — | — | — | — | ||||||||||||||||||||||||
All Other Banking Institutions | 725 | — | 725 | 0.5 | % | — | — | — | — | ||||||||||||||||||||||||
Total | $ | 3,954 | $ | 133,332 | $ | 137,286 | 100 | % | $ | 4,560 | $ | 342,832 | $ | 347,392 | 100 | % | |||||||||||||||||
The following table presents the amount of restricted cash and cash equivalents as of the periods presented (in thousands): | |||||||||||||||||||||||||||||||||
Restricted cash and cash equivalents | |||||||||||||||||||||||||||||||||
As of September 30, 2013 | As of December 31, 2012 | ||||||||||||||||||||||||||||||||
Institution | State Deposits | % by | State Deposits | % by | |||||||||||||||||||||||||||||
institution | institution | ||||||||||||||||||||||||||||||||
U.S. Bank IT&C | $ | 800 | 30.8 | % | $ | 800 | 2.4 | % | |||||||||||||||||||||||||
Florida Department of Financial Services | 1,800 | 69.2 | % | 32,209 | 97.6 | % | |||||||||||||||||||||||||||
Total | $ | 2,600 | 100 | % | $ | 33,009 | 100 | % | |||||||||||||||||||||||||
Concentrations of credit risk with respect to premiums receivable are limited due to the large number of individuals comprising the Company’s customer base. However, the majority of the Company’s revenues are currently derived from products and services offered to customers in Florida, which could be adversely affected by economic downturns, an increase in competition or other environmental changes. | |||||||||||||||||||||||||||||||||
In order to reduce credit risk for amounts due from reinsurers, the Insurance Entities seek to do business with financially sound reinsurance companies and regularly evaluate the financial strength of all reinsurers used. | |||||||||||||||||||||||||||||||||
The following table presents the unsecured amounts due from the Company’s reinsurers whose aggregate balance exceeded 3% of the Company’s stockholders’ equity as of the periods presented (in thousands): | |||||||||||||||||||||||||||||||||
Current Ratings | As of | ||||||||||||||||||||||||||||||||
Reinsurer | AM Best | Standard and | Moody’s | September 30, | December 31, | ||||||||||||||||||||||||||||
Company | Poor’s Rating | Investors | 2013 | 2012 | |||||||||||||||||||||||||||||
Services | Service, Inc. | ||||||||||||||||||||||||||||||||
Everest Reinsurance Company | A+ | A+ | A1 | $ | 84,387 | $ | 44,392 | ||||||||||||||||||||||||||
Florida Hurricane Catastrophe Fund | n/a | n/a | n/a | — | 31,970 | ||||||||||||||||||||||||||||
Odyssey Reinsurance Company | A | A- | A3 | 151,600 | 192,096 | ||||||||||||||||||||||||||||
Total (1) | $ | 235,987 | $ | 268,458 | |||||||||||||||||||||||||||||
-1 | Amounts represent prepaid reinsurance premiums, reinsurance receivables, and net recoverables for paid and unpaid losses, including incurred but not reported reserves, loss adjustment expenses, and offsetting reinsurance payables. | ||||||||||||||||||||||||||||||||
n/a—No rating available | |||||||||||||||||||||||||||||||||
Recently Issued Accounting Pronouncements | |||||||||||||||||||||||||||||||||
In July 2013, the Financial Accounting Standards Board (FASB) issued accounting guidance on the presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss or a tax credit carryforward exists. Under this guidance, an unrecognized tax benefit, or a portion of an unrecognized tax benefit, should generally be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward. This guidance is effective for fiscal years and interim periods beginning after December 15, 2013, but earlier adoption is permitted. We plan to adopt the standard prospectively on its required effective date of January 1, 2014 and are assessing the effect of adopting the standard on our Condensed Consolidated Balance Sheets, Statements of Income and Statements of Cash Flows. | |||||||||||||||||||||||||||||||||
In June 2011, the FASB updated its guidance to the Comprehensive Income Topic 220 of the FASB Accounting Standards Codification (“ASC”) and in February 2013, the FASB further amended such topic. This February 2013 guidance requires disclosure about amounts reclassified out of accumulated other comprehensive income by component. In addition, an entity is required to present, either on the face of the statement of operations or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income, but only if the amount reclassified is required to be reclassified to net income in its entirety in the same reporting period. For amounts that are not required to be reclassified in their entirety to net income, an entity is required to cross-reference to other disclosures that provide additional detail about those amounts. This guidance is to be applied prospectively to interim and annual reporting periods beginning after December 15, 2012. The Company adopted this guidance effective January 1, 2013. The adoption of this guidance will result in additional disclosure but did not impact the Company’s results of operations, cash flows or financial position. The updated guidance provided by the FASB in June 2011 increases the prominence of items reported in other comprehensive income by eliminating the option of presenting components of other comprehensive income as part of the statement of changes in stockholders’ equity. The guidance requires that total comprehensive income (including both the net income components and other comprehensive income components) be reported in either a single continuous statement of comprehensive income (the approach currently used in the Company’s financial statements), or two separate but consecutive statements. This guidance is to be applied retrospectively to fiscal years (and interim periods within those years) beginning after December 15, 2011. The Company adopted this guidance effective January 1, 2012. The adoption did not have an impact on the presentation of the Company’s financial statements and notes herein, as the Company has presented amounts of other comprehensive income consistent with this updated guidance. | |||||||||||||||||||||||||||||||||
In May 2011, the FASB updated its guidance related to the Fair Value Measurement, Topic 820 of the ASC, to achieve common fair value measurement and disclosure requirements with International Financial Reporting Standards. The amendments change the wording used to describe many of the requirements under GAAP, to clarify the intent of application of existing fair value measurement and disclosure requirements, and to change particular principles or requirements for measuring and disclosing fair value measurements. The amendments are to be applied prospectively to interim and annual reporting periods beginning after December 15, 2011. The Company adopted this guidance effective January 1, 2012. The adoption of this guidance resulted in additional disclosure but did not impact the Company’s results of operations, cash flows or financial position. | |||||||||||||||||||||||||||||||||
In September 2010, the FASB issued guidance related to accounting for costs associated with acquiring or renewing insurance contracts. This guidance defines allowable deferred policy acquisition costs as costs incurred by insurance entities for the successful acquisition of new and renewal contracts. Such costs result directly from and are essential to the contract transaction(s) and would not have been incurred by the insurance entity had the contract(s) not occurred. This guidance is effective for periods beginning after December 15, 2011, with early adoption permitted. The Company adopted this guidance prospectively effective January 1, 2012. Under the new guidance, the Company’s net deferred policy acquisition costs were reduced from $13.0 million to $11.4 million, a difference of 13% at December 31, 2011. The resulting $1.6 million difference was charged directly to earnings during the three months ended March 31, 2012. This charge represents a charge-off of capitalized costs existing at December 31, 2011, which would have been amortized to earnings within a twelve-month period under the old guidance. |
Investments
Investments | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||
Cash And Cash Equivalents [Abstract] | ' | ||||||||||||||||||||||||
Investments | ' | ||||||||||||||||||||||||
3 | Investments | ||||||||||||||||||||||||
The Company liquidated its trading portfolio of equity securities and transferred the fixed maturities that were outstanding at December 31, 2012 into its portfolio of securities available for sale effective March 1, 2013. The unrealized gain (loss) associated with the fixed maturities trading portfolio was recognized in earnings up to the date of transfer. | |||||||||||||||||||||||||
The following table presents the Company’s investment holdings by type of instrument as of the periods presented (in thousands): | |||||||||||||||||||||||||
As of September 30, 2013 | As of December 31, 2012 | ||||||||||||||||||||||||
Cost or | Fair Value | Carrying | Cost or | Fair Value | Carrying | ||||||||||||||||||||
Amortized | Value | Amortized | Value | ||||||||||||||||||||||
Cost | Cost (4) | ||||||||||||||||||||||||
Cash and cash equivalents (1) | $ | 137,286 | $ | 137,286 | $ | 137,286 | $ | 347,392 | $ | 347,392 | $ | 347,392 | |||||||||||||
Restricted cash and cash equivalents | 2,600 | 2,600 | 2,600 | 33,009 | 33,009 | 33,009 | |||||||||||||||||||
Trading portfolio: | |||||||||||||||||||||||||
Fixed maturities: | |||||||||||||||||||||||||
U.S. government obligations and agencies | — | — | — | 3,192 | 4,009 | 4,009 | |||||||||||||||||||
Equity securities: (4) | |||||||||||||||||||||||||
Common stock: | |||||||||||||||||||||||||
Metals and mining | — | — | — | 31,113 | 26,130 | 26,130 | |||||||||||||||||||
Energy | — | — | — | 12,053 | 10,868 | 10,868 | |||||||||||||||||||
Other | — | — | — | 8,416 | 8,215 | 8,215 | |||||||||||||||||||
Exchange-traded and mutual funds: | |||||||||||||||||||||||||
Metals and mining | — | — | — | 22,687 | 21,989 | 21,989 | |||||||||||||||||||
Agriculture | — | — | — | 10,705 | 10,265 | 10,265 | |||||||||||||||||||
Energy | — | — | — | 4,992 | 5,068 | 5,068 | |||||||||||||||||||
Indices | — | — | — | 2,827 | 2,506 | 2,506 | |||||||||||||||||||
Non-hedging derivative asset (liability), net (2) | — | — | — | 69 | (21 | ) | (21 | ) | |||||||||||||||||
Other investments (3) | — | — | — | 517 | 317 | 317 | |||||||||||||||||||
Total trading portfolio investments | — | — | — | 96,571 | 89,346 | 89,346 | |||||||||||||||||||
Available for sale portfolio: | |||||||||||||||||||||||||
Fixed maturities: | |||||||||||||||||||||||||
U.S. government obligations and agencies | 105,265 | 104,532 | 104,532 | — | — | — | |||||||||||||||||||
Corporate bonds | 99,659 | 98,978 | 98,978 | — | — | — | |||||||||||||||||||
Mortgage-backed and asset-backed securities | 95,220 | 94,994 | 94,994 | — | — | — | |||||||||||||||||||
Equity securities: | |||||||||||||||||||||||||
Common stock | 19,126 | 20,057 | 20,057 | — | — | — | |||||||||||||||||||
Mutual funds | 50,891 | 50,805 | 50,805 | — | — | — | |||||||||||||||||||
Total available for sale investments | 370,161 | 369,366 | 369,366 | — | — | — | |||||||||||||||||||
Total investments | $ | 510,047 | $ | 509,252 | $ | 509,252 | $ | 476,972 | $ | 469,747 | $ | 469,747 | |||||||||||||
-1 | Cash and cash equivalents include short-term debt securities consisting of direct obligations of the U.S. Treasury or money-market accounts that invest in or are collateralized by direct obligations of the U.S. Treasury and other U.S. government guaranteed securities. | ||||||||||||||||||||||||
-2 | Derivatives are included in Other assets and Other liabilities and accrued expenses in the Consolidated Balance Sheets. | ||||||||||||||||||||||||
-3 | Other investments represent physical metals held by the Company and are included in Other assets in the Consolidated Balance Sheets. | ||||||||||||||||||||||||
-4 | The cost for equity securities as of December 31, 2012 has been restated from the amounts reported on Form 10-K for the year ended December 31, 2012. The amounts previously reported represented the cost determined under a statutory basis of accounting. The restatement does not affect any amounts reported in the consolidated financial statements including the carrying amount of equity securities reported in the consolidated balance sheet as of December 31, 2012 and unrealized gains and losses reported in the consolidated statement of income for the year ended December 31, 2012. | ||||||||||||||||||||||||
The Company has made an assessment of its invested assets for fair value measurement as further described in “— Note 14 (Fair Value Measurements)”. | |||||||||||||||||||||||||
The following table presents the components of net investment income, comprised primarily of interest and dividends, for the periods presented (in thousands): | |||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||
Cash and cash equivalents (1) | $ | 135 | $ | 243 | $ | 377 | $ | 483 | |||||||||||||||||
Fixed maturities | 439 | 42 | 409 | 53 | |||||||||||||||||||||
Equity securities | 363 | 95 | 729 | 313 | |||||||||||||||||||||
Total investment income | 937 | 380 | 1,515 | 849 | |||||||||||||||||||||
Less investment expenses | (555 | ) | (165 | ) | (985 | ) | (686 | ) | |||||||||||||||||
Net investment (expense) income | $ | 382 | $ | 215 | $ | 530 | $ | 163 | |||||||||||||||||
-1 | Includes interest earned on restricted cash and cash equivalents. | ||||||||||||||||||||||||
Trading Portfolio | |||||||||||||||||||||||||
The following table provides the effect of trading activities on the Company’s results of operations for the periods presented by type of instrument and by line item in the Condensed Consolidated Statements of Income (in thousands): | |||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||
Realized gains (losses) on investments: | |||||||||||||||||||||||||
Fixed maturities | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||
Equity securities | — | (3,299 | ) | (15,969 | ) | (12,728 | ) | ||||||||||||||||||
Derivatives (non-hedging instruments) (1) | — | 157 | (68 | ) | 432 | ||||||||||||||||||||
Total realized gains (losses) on trading portfolio | — | (3,142 | ) | (16,037 | ) | (12,296 | ) | ||||||||||||||||||
Change in unrealized gains (losses) on investments: | |||||||||||||||||||||||||
Fixed maturities | — | 55 | 13 | 192 | |||||||||||||||||||||
Equity securities | — | 8,119 | 7,758 | 11,291 | |||||||||||||||||||||
Derivatives (non-hedging instruments) (1) | — | (55 | ) | 89 | 62 | ||||||||||||||||||||
Other | — | (28 | ) | 14 | (55 | ) | |||||||||||||||||||
Total change in unrealized gains (losses) on trading portfolio | — | 8,091 | 7,874 | 11,490 | |||||||||||||||||||||
Net gains (losses) recognized on trading portfolio | $ | — | $ | 4,949 | $ | (8,163 | ) | $ | (806 | ) | |||||||||||||||
-1 | This table provides the alternative quantitative disclosures permitted for derivatives that are not used as hedging instruments and are included in the trading portfolio. | ||||||||||||||||||||||||
Securities Available for Sale | |||||||||||||||||||||||||
The following table provides the cost or amortized cost and fair value of securities available for sale as of the period presented (in thousands): | |||||||||||||||||||||||||
September 30, 2013 | |||||||||||||||||||||||||
Cost or | Gross Unrealized | Gross Unrealized | Fair Value | ||||||||||||||||||||||
Amortized Cost | Gains | Losses | |||||||||||||||||||||||
Fixed Maturities: | |||||||||||||||||||||||||
US government and agency obligations | $ | 105,265 | $ | 2 | $ | (735 | ) | $ | 104,532 | ||||||||||||||||
Corporate bonds | 99,659 | 263 | (944 | ) | 98,978 | ||||||||||||||||||||
Mortgage-backed and asset-backed securities | 95,220 | 125 | (351 | ) | 94,994 | ||||||||||||||||||||
Equity Securities: | |||||||||||||||||||||||||
Common stock | 19,126 | 1,214 | (283 | ) | 20,057 | ||||||||||||||||||||
Mutual funds | 50,891 | 986 | (1,072 | ) | 50,805 | ||||||||||||||||||||
Total | $ | 370,161 | $ | 2,590 | $ | (3,385 | ) | $ | 369,366 | ||||||||||||||||
The following table summarizes the fair value and gross unrealized losses on securities available for sale, aggregated by major investment category and length of time that individual securities have been in a continuous unrealized loss position as of September 30, 2013 (in thousands): | |||||||||||||||||||||||||
Less than 12 months | 12 months or longer | ||||||||||||||||||||||||
Number | Fair value | Unrealized | Number | Fair value | Unrealized | ||||||||||||||||||||
of issues | losses | of issues | losses | ||||||||||||||||||||||
Fixed maturities: | |||||||||||||||||||||||||
US government and agency obligations | 7 | $ | 92,376 | $ | (735 | ) | — | $ | — | $ | — | ||||||||||||||
Corporate bonds | 68 | 81,640 | (944 | ) | — | — | — | ||||||||||||||||||
Mortgage-backed and asset-backed securities | 17 | 73,630 | (351 | ) | — | — | — | ||||||||||||||||||
Equity securities: | |||||||||||||||||||||||||
Common stock | 22 | 6,449 | (284 | ) | — | — | — | ||||||||||||||||||
Mutual funds | 5 | 20,430 | (1,071 | ) | — | — | — | ||||||||||||||||||
Total | 119 | $ | 274,525 | $ | (3,385 | ) | — | $ | — | $ | — | ||||||||||||||
At September 30, 2013, we held fixed maturity and equity securities that were in an unrealized loss position as presented in the table above. Since the Company liquidated its trading portfolio and transferred the remaining fixed maturities into its portfolio of securities available for sale effective March 1, 2013, there were no positions held in our portfolio of securities available for sale for longer than 12 months. For fixed maturity securities with significant declines in value, we perform fundamental credit analysis on a security-by-security basis, which includes consideration of credit quality and credit ratings, review of relevant industry analyst reports and other available market data. For fixed maturity and equity securities, the Company considers whether it has the intent and ability to hold the securities for a period of time sufficient to recover its cost basis. Where the Company lacks the intent and ability to hold to recovery, or believes the recovery period is extended, the security’s decline in fair value is considered other than temporary and is recorded in earnings. Based upon the relative severity and duration of the unrealized losses combined with management’s intent and ability to hold the securities until recovery and its credit analysis of the individual issuers of the securities, management has no reason to believe the unrealized losses for securities available for sale at September 30, 2013 are other than temporary. | |||||||||||||||||||||||||
The following table presents the amortized cost and fair value of fixed maturities available for sale by contractual maturity as of September 30, 2013 (in thousands): | |||||||||||||||||||||||||
Fixed Maturities | |||||||||||||||||||||||||
Securities Available for Sale | |||||||||||||||||||||||||
Amortized Cost | Fair Value | ||||||||||||||||||||||||
Due in one year or less | $ | 5,807 | $ | 5,804 | |||||||||||||||||||||
Due after one year through five years | 193,942 | 192,804 | |||||||||||||||||||||||
Due after five years through ten years | 5,175 | 4,902 | |||||||||||||||||||||||
Due after ten years | — | — | |||||||||||||||||||||||
Mortgage-backed and asset-backed securities | 95,220 | 94,994 | |||||||||||||||||||||||
Total | $ | 300,144 | $ | 298,504 | |||||||||||||||||||||
The following table provides certain information related to securities available for sale during the periods presented (in thousands): | |||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||
September 30, 2013 | September 30, 2013 | ||||||||||||||||||||||||
Sales proceeds (fair value) | $ | 376 | $ | 390 | |||||||||||||||||||||
Gross realized gains | $ | 56 | $ | 56 | |||||||||||||||||||||
Gross realized losses | $ | — | $ | (1 | ) | ||||||||||||||||||||
Other than temporary losses | $ | — | $ | — |
Reinsurance
Reinsurance | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||
Insurance [Abstract] | ' | ||||||||||||||||||||||||
Reinsurance | ' | ||||||||||||||||||||||||
4 | Reinsurance | ||||||||||||||||||||||||
The Company seeks to reduce its risk of loss by reinsuring certain levels of risk in various areas of exposure with other insurance enterprises or reinsurers, generally, as of the beginning of the hurricane season on June 1 of each year. The Company’s reinsurance program consists of excess of loss, quota share and catastrophe reinsurance, subject to the terms and conditions of the applicable agreements. The Company is responsible for insured losses related to catastrophes and other events in excess of coverage provided by its reinsurance program. The Company also remains responsible for the settlement of insured losses in the event of the failure of any of its reinsurers to make payments otherwise due to the Company. The estimated insured value of the Company’s in-force policyholder coverage for windstorm exposures as of September 30, 2013 was approximately $122.8 billion. | |||||||||||||||||||||||||
The Company has reduced the percentage of premiums ceded by UPCIC to its quota share reinsurers to 45% beginning with the reinsurance program effective June 1, 2012, from 50% under the prior year quota share contract effective June 1, 2011 through May 31, 2012. The Company’s two quota share reinsurance contracts were effective June 1, 2013. One quota share reinsurance contract provides coverage to UPCIC through May 31, 2014 and the other provides coverage to UPCIC through May 31, 2015. By ceding 5% less premium to its quota share reinsurers, the Company intends to increase its profitability. The reduction of cession rate also decreases the amount of losses and loss adjustment expenses (“LAE”) that may be ceded by UPCIC and effectively increases the amount of risk retained by UPCIC and the Company. The reduction of cession rate also reduces the amount of ceding commissions earned from the Company’s quota share reinsurer during the contract term and decreases the amount of deferred ceding commission, as of September 30, 2013, that is a component of net deferred policy acquisition costs. | |||||||||||||||||||||||||
Amounts recoverable from reinsurers are estimated in a manner consistent with the reinsurance contracts. Reinsurance premiums, losses and LAE are accounted for on a basis consistent with those used in accounting for the original policies issued and the terms of the reinsurance contracts. Deferred ceding commissions are netted against policy acquisition costs and amortized over the effective period of the related insurance policies. | |||||||||||||||||||||||||
The Company’s reinsurance arrangements had the following effect on certain items in the Condensed Consolidated Statements of Income for the periods presented (in thousands): | |||||||||||||||||||||||||
Three Months Ended September 30, 2013 | Nine Months Ended September 30, 2013 | ||||||||||||||||||||||||
Premiums | Premiums | Loss and Loss | Premiums | Premiums | Loss and Loss | ||||||||||||||||||||
Written | Earned | Adjustment | Written | Earned | Adjustment | ||||||||||||||||||||
Expenses | Expenses | ||||||||||||||||||||||||
Direct | $ | 186,079 | $ | 199,323 | $ | 53,600 | $ | 610,164 | $ | 590,792 | $ | 154,547 | |||||||||||||
Ceded | (124,961 | ) | (130,396 | ) | (25,265 | ) | (400,175 | ) | (389,590 | ) | (74,529 | ) | |||||||||||||
Net | $ | 61,118 | $ | 68,927 | $ | 28,335 | $ | 209,989 | $ | 201,202 | $ | 80,018 | |||||||||||||
Three Months Ended September 30, 2012 | Nine Months Ended September 30, 2012 | ||||||||||||||||||||||||
Premiums | Premiums | Loss and Loss | Premiums | Premiums | Loss and Loss | ||||||||||||||||||||
Written | Earned | Adjustment | Written | Earned | Adjustment | ||||||||||||||||||||
Expenses | Expenses | ||||||||||||||||||||||||
Direct | $ | 192,986 | $ | 191,225 | $ | 68,286 | $ | 605,557 | $ | 556,685 | $ | 177,425 | |||||||||||||
Ceded | (132,776 | ) | (131,713 | ) | (31,985 | ) | (398,643 | ) | (392,839 | ) | (85,513 | ) | |||||||||||||
Net | $ | 60,210 | $ | 59,512 | $ | 36,301 | $ | 206,914 | $ | 163,846 | $ | 91,912 | |||||||||||||
The following prepaid reinsurance premiums and reinsurance recoverable and receivable are reflected in the Condensed Consolidated Balance Sheets as of the periods presented (in thousands): | |||||||||||||||||||||||||
As of | As of | ||||||||||||||||||||||||
September 30, 2013 | December 31, 2012 | ||||||||||||||||||||||||
Prepaid reinsurance premiums | $ | 250,506 | $ | 239,921 | |||||||||||||||||||||
Reinsurance recoverable on unpaid losses and LAE | $ | 63,202 | $ | 81,415 | |||||||||||||||||||||
Reinsurance recoverable on paid losses | 11,698 | 7,776 | |||||||||||||||||||||||
Reinsurance receivable, net | 24,268 | 24,334 | |||||||||||||||||||||||
Reinsurance recoverable and receivable | $ | 99,168 | $ | 113,525 | |||||||||||||||||||||
Insurance_Operations
Insurance Operations | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Insurance [Abstract] | ' | ||||||||||||||||
Insurance Operations | ' | ||||||||||||||||
5 | Insurance Operations | ||||||||||||||||
The Company’s primary product is homeowners insurance currently offered by APPCIC in one state (Florida) and by UPCIC in seven states, including Florida. | |||||||||||||||||
The following table provides the percentage of concentrations with respect to the Insurance Entities’ nationwide policies-in-force as of the periods presented: | |||||||||||||||||
As of | As of | ||||||||||||||||
September 30, 2013 | December 31, 2012 | ||||||||||||||||
Percentage of Policies-In-Force: | |||||||||||||||||
In Florida | 94 | % | 96 | % | |||||||||||||
With wind coverage | 98 | % | 98 | % | |||||||||||||
With wind coverage in South Florida (1) | 27 | % | 28 | % | |||||||||||||
-1 | South Florida is comprised of Miami-Dade, Broward and Palm Beach counties. | ||||||||||||||||
Deferred Policy Acquisition Costs, net | |||||||||||||||||
The Company defers certain costs in connection with written policies, called Deferred Policy Acquisition Costs (“DPAC”), net of corresponding amounts of ceded reinsurance commissions, called Deferred Reinsurance Ceding Commissions (“DRCC”). Net DPAC is amortized over the effective period of the related insurance policies. | |||||||||||||||||
The following table presents the beginning and ending balances and the changes in DPAC, net of DRCC, for the periods presented (in thousands): | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
DPAC, beginning of period (1) | $ | 59,033 | $ | 56,922 | $ | 54,431 | $ | 50,200 | |||||||||
Capitalized Costs | 26,382 | 26,849 | 85,315 | 82,529 | |||||||||||||
Amortization of DPAC | (27,888 | ) | (26,606 | ) | (82,219 | ) | (75,564 | ) | |||||||||
DPAC, end of period | $ | 57,527 | $ | 57,165 | $ | 57,527 | $ | 57,165 | |||||||||
DRCC, beginning of period (1) | $ | 41,792 | $ | 39,178 | $ | 37,149 | $ | 38,845 | |||||||||
Ceding Commissions Written | 21,319 | 21,082 | 69,853 | 65,857 | |||||||||||||
Earned Ceding Commissions | (22,537 | ) | (21,114 | ) | (66,428 | ) | (65,556 | ) | |||||||||
DRCC, end of period | $ | 40,574 | $ | 39,146 | $ | 40,574 | $ | 39,146 | |||||||||
DPAC (DRCC), net, beginning of period (1) | $ | 17,241 | $ | 17,744 | $ | 17,282 | $ | 11,355 | |||||||||
Capitalized Costs, net | 5,063 | 5,767 | 15,462 | 16,672 | |||||||||||||
Amortization of DPAC (DRCC), net | (5,351 | ) | (5,492 | ) | (15,791 | ) | (10,008 | ) | |||||||||
DPAC (DRCC), net, end of period | $ | 16,953 | $ | 18,019 | $ | 16,953 | $ | 18,019 | |||||||||
-1 | The beginning balances for the nine months ended September 30, 2012 have been adjusted in connection with the adoption of the FASB’s updated guidance related to deferred policy acquisition costs as discussed below. | ||||||||||||||||
As discussed in “—Note 2 (Significant Accounting Policies)”, the Company prospectively adopted new accounting guidance effective January 1, 2012 related to accounting for costs associated with acquiring or renewing insurance contracts. This guidance resulted in a 13% reduction of our net deferred policy acquisition costs as of December 31, 2011, and a corresponding pre-tax charge of $1.6 million against earnings during the first quarter of 2012. This charge represents a charge-off of capitalized costs existing at December 31, 2011, which would have been amortized to earnings within a twelve-month period under the old guidance. In the period of adoption (three months ended March 31, 2012), approximately $9 million of net costs would have been deferred under the old guidance compared to the $5.6 million under the new guidance. The effect of this change in periods subsequent to March 31, 2012, on income and per share amounts is not determinable as the historical methodology was discontinued after adoption. | |||||||||||||||||
Liability for Unpaid Losses and Loss Adjustment Expenses | |||||||||||||||||
Set forth in the following table is the change in liability for unpaid losses and LAE for the periods presented (in thousands): | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Balance at beginning of period | $ | 166,260 | $ | 164,625 | $ | 193,241 | $ | 187,215 | |||||||||
Less reinsurance recoverable | (67,820 | ) | (73,169 | ) | (81,415 | ) | (88,002 | ) | |||||||||
Net balance at beginning of period | 98,440 | 91,456 | 111,826 | 99,213 | |||||||||||||
Incurred (recovered) related to: | |||||||||||||||||
Current year | 28,665 | 27,409 | 81,995 | 83,120 | |||||||||||||
Prior years | (330 | ) | 8,891 | (1,977 | ) | 8,791 | |||||||||||
Total incurred | 28,335 | 36,300 | 80,018 | 91,911 | |||||||||||||
Paid related to: | |||||||||||||||||
Current year | 21,813 | 18,808 | 39,288 | 34,143 | |||||||||||||
Prior years | 10,789 | 10,434 | 58,383 | 58,467 | |||||||||||||
Total paid | 32,602 | 29,242 | 97,671 | 92,610 | |||||||||||||
Net balance at end of period | 94,173 | 98,514 | 94,173 | 98,514 | |||||||||||||
Plus reinsurance recoverable | 63,201 | 74,160 | 63,201 | 74,160 | |||||||||||||
Balance at end of period | $ | 157,374 | $ | 172,674 | $ | 157,374 | $ | 172,674 | |||||||||
Regulatory Requirements and Restrictions | |||||||||||||||||
The Insurance Entities are primarily subject to regulations and standards of the Florida Office of Insurance Regulation (“OIR”). These standards require the Insurance Entities to maintain specified levels of statutory capital and restrict the timing and amount of dividends and other distributions that may be paid to the parent company. Except in the case of extraordinary dividends, these standards generally permit dividends to be paid from statutory unassigned surplus of the regulated subsidiary and are limited based on the regulated subsidiary’s level of statutory net income and statutory capital and surplus. The maximum dividend that may be paid by UPCIC and APPCIC to their immediate parent company, Universal Insurance Holding Company of Florida (“UIHCF”), without prior approval is limited to the lesser of statutory net income from operations of the preceding calendar year or 10.0% of statutory unassigned surplus as of the preceding year end. These dividends are referred to as “ordinary dividends” and generally can be paid without prior regulatory approval. If the dividend, together with other dividends paid within the preceding twelve months, exceeds a specified statutory limit or is paid from sources other than earned surplus, the entire dividend is generally considered an “extraordinary dividend” and must receive prior regulatory approval. | |||||||||||||||||
Based on the 2012 statutory net income and statutory capital and surplus levels, UPCIC and APPCIC do not have the capacity to pay ordinary dividends during 2013. For the three and nine months ended September 30, 2013, no dividends were paid from UPCIC or APPCIC to UIHCF. Dividends paid to the shareholders of UIH are paid from the equity of UIH and not from the capital and surplus of the Insurance Entities. | |||||||||||||||||
The Florida Insurance Code requires companies to maintain capitalization equivalent to the greater of ten percent of the insurer’s total liabilities or $5.0 million. The following table presents the amount of statutory capital and surplus, and an amount representing ten percent of total liabilities for both UPCIC and APPCIC as of the periods presented (in thousands): | |||||||||||||||||
As of | As of | ||||||||||||||||
September 30, 2013 | December 31, 2012 | ||||||||||||||||
Ten percent of total liabilities | |||||||||||||||||
UPCIC | $ | 43,384 | $ | 39,260 | |||||||||||||
APPCIC | $ | 876 | $ | 694 | |||||||||||||
Statutory capital and surplus | |||||||||||||||||
UPCIC | $ | 152,341 | $ | 134,034 | |||||||||||||
APPCIC | $ | 13,713 | $ | 14,330 | |||||||||||||
At such dates in the table above, both UPCIC and APPCIC met the Florida capitalization requirement. UPCIC and APPCIC are also required to adhere to prescribed premium-to-capital surplus ratios and have met those requirements at such dates. | |||||||||||||||||
The Company is required by various state laws and regulations to maintain certain assets in depository accounts. In addition, the Company at times maintains amounts on deposit with insurance regulators in connection with certain reinsurance agreements. The following table represents assets held by insurance regulators as of the periods presented (in thousands): | |||||||||||||||||
As of | As of | ||||||||||||||||
September 30, 2013 | December 31, 2012 | ||||||||||||||||
Restricted cash and cash equivalents | $ | 2,600 | $ | 33,009 | |||||||||||||
Investments | $ | 3,777 | $ | 4,009 | |||||||||||||
UPCIC received an order from the OIR dated May 30, 2013 related to the OIR’s Target Market Conduct Final Examination Report of UPCIC for the period January 2009 through May 2013 (“OIR Order”). The OIR Order alleged certain violations and findings and sought to impose certain requirements and an administrative fine of $1.3 million upon UPCIC which has been accrued for by the Company. On October 4, 2013, UPCIC and the OIR signed a consent order settling the matters to which the OIR Order related (“Consent Order”). See “—Note 15 (Subsequent Events)” for additional discussion of the Consent Order. |
LongTerm_Debt
Long-Term Debt | 9 Months Ended | ||||
Sep. 30, 2013 | |||||
Debt Disclosure [Abstract] | ' | ||||
Long-Term Debt | ' | ||||
6 | Long-Term Debt | ||||
Long-term debt consists of a surplus note with carrying values of $19.1 million and $20.2 million as of September 30, 2013 and December 31, 2012, respectively, a term loan with a carrying value of $18.2 million as of September 30, 2013 and any amounts drawn upon an unsecured line of credit. | |||||
On March 29, 2013, UIH entered into a revolving loan agreement and related revolving note (“DB Loan”) with Deutsche Bank Trust Company Americas (“Deutsche Bank”). The DB Loan makes available to UIH an unsecured line of credit in an aggregate amount not to exceed $10.0 million. Draws under the DB Loan have a maturity date of March 27, 2015 and carry an interest rate of LIBOR plus a margin of 5.50% or Deutsche Bank’s prime rate plus a margin of 3.50%. The interest rate is at the election of UIH. The DB Loan contains financial covenants. As of September 30, 2013, UIH was in compliance with all such covenants. UIH had not drawn any amounts under the unsecured line of credit as of September 30, 2013. | |||||
On May 23, 2013, UIH entered into a $20 million unsecured term loan agreement and related term note (“Term Loan”) with RenaissanceRe Ventures Ltd. (“RenRe Ventures”). See “—Note 9 (Related Party Transactions)” for a discussion of a series of agreements entered into with RenRe Ventures and its affiliate Renaissance Reinsurance Ltd. (“RenRe”). The Term Loan bears interest at the rate of 0.50% per annum and matures on the earlier of May 23, 2016 or the date that all principal under the Term Loan is pre-paid or deemed paid in full. The Term Loan is amortized over the three-year term and UIH may prepay the loan without penalty. Principal is payable annually on the anniversary of the closing date in three annual installments of $6 million, $7 million and $7 million, respectively, and interest is payable in arrears on the same dates as the principal payments. The Term Loan contains financial covenants and as of September 30, 2013, UIH was in compliance with such covenants. | |||||
The stated interest rate of the Term Loan of 0.50% is below the Company’s borrowing rate resulting in imputed interest and an original issue discount computed by calculating the present value of the future principal and interest payments utilizing the Company’s borrowing rate. Concurrent with the establishment of the original issue discount, the Company recorded a deferred credit, a component of other liabilities and accrued expenses, for an equal amount against premium payments the Company will make in connection with a catastrophe risk-linked transaction contract entered into with RenRe on the same date and with the same maturity date as the Term Loan. The original issue discount will be amortized to interest expense over the life of the Term Loan and the deferred credit will be amortized as a reduction in insurance expense, a component of general and administrative expenses, over the life of the covered loss index swap. The following table provides the principal amount and unamortized discount of the Term Loan for the period presented (in thousands): | |||||
As of September 30, 2013 | |||||
Principal amount | $ | 20,000 | |||
Less: unamortized discount | (1,762 | ) | |||
Term Loan, net of unamortized discount | $ | 18,238 | |||
Through the interest rate payment of 0.50% per annum and the amortization of the discount, the effective interest rate on the Term Loan is 5.99%. Amortization of the discount is included in interest expense, a component of general and administrative expenses, in the Condensed Consolidated Statements of Income and was $248 and $349 thousand for the three and nine months ended September 30, 2013, respectively. | |||||
Should UIH default on either the DB Loan or the Term Loan, it will be prohibited from paying dividends to its shareholders. |
ShareBased_Compensation
Share-Based Compensation | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ||||||||||||||||||||||||
Share-Based Compensation | ' | ||||||||||||||||||||||||
7 | Share-Based Compensation | ||||||||||||||||||||||||
The following table provides certain information related to stock options and restricted stock for the periods presented (in thousands, except per share data): | |||||||||||||||||||||||||
Three Months Ended September 30, 2013 | |||||||||||||||||||||||||
Stock Options | Restricted Stock | ||||||||||||||||||||||||
Number of | Weighted | Aggregate | Weighted | Number of | Weighted | ||||||||||||||||||||
Options | Average | Intrinsic | Average | Shares (2) | Average | ||||||||||||||||||||
Exercise | Value | Remaining | Grant Date | ||||||||||||||||||||||
Price per | Term | Fair Value | |||||||||||||||||||||||
Share (1) | per Share (1) | ||||||||||||||||||||||||
Outstanding as of June 30, 2013 | 3,240 | $ | 4.62 | 1,450 | $ | 4.56 | |||||||||||||||||||
Granted | 830 | 7.33 | 150 | 8.55 | |||||||||||||||||||||
Forfeited | (20 | ) | 7.33 | n/a | n/a | ||||||||||||||||||||
Exercised | (135 | ) | 4.7 | n/a | n/a | ||||||||||||||||||||
Vested | n/a | n/a | — | — | |||||||||||||||||||||
Outstanding as of September 30, 2013 | 3,915 | $ | 5.17 | $ | 7,572 | 3.62 | 1,600 | $ | 4.94 | ||||||||||||||||
Exercisable as of September 30, 2013 | 2,170 | $ | 4.77 | $ | 4,947 | 2.66 | |||||||||||||||||||
Nine Months Ended September 30, 2013 | |||||||||||||||||||||||||
Stock Options | Restricted Stock | ||||||||||||||||||||||||
Number of | Weighted | Aggregate | Weighted | Number of | Weighted | ||||||||||||||||||||
Options | Average | Intrinsic | Average | Shares (2) | Average | ||||||||||||||||||||
Exercise | Value | Remaining | Grant Date | ||||||||||||||||||||||
Price per | Term | Fair Value | |||||||||||||||||||||||
Share (1) | per Share (1) | ||||||||||||||||||||||||
Outstanding as of December 31, 2012 | 5,330 | $ | 4.29 | 1,152 | $ | 4.37 | |||||||||||||||||||
Granted | 1,515 | 6.05 | 1,000 | 5.43 | |||||||||||||||||||||
Forfeited | (20 | ) | 7.33 | n/a | n/a | ||||||||||||||||||||
Exercised | (2,060 | ) | 4.03 | n/a | n/a | ||||||||||||||||||||
Vested | n/a | n/a | (552 | ) | 4.64 | ||||||||||||||||||||
Expired | (850 | ) | 3.9 | n/a | n/a | ||||||||||||||||||||
Outstanding as of September 30, 2013 | 3,915 | $ | 5.17 | $ | 7,572 | 3.62 | 1,600 | $ | 4.94 | ||||||||||||||||
Exercisable as of September 30, 2013 | 2,170 | $ | 4.77 | $ | 4,947 | 2.66 | |||||||||||||||||||
-1 | Unless otherwise specified, such as in the case of the exercise of stock options, the per share prices were determined using the closing price of the Company’s Common Stock as quoted on the NYSE MKT LLC. Shares issued upon exercise of options represent original issuances in private transactions pursuant to Section 4(2) of the Securities Act of 1933, as amended or issuances under the Company’s 2009 Omnibus Incentive Plan. | ||||||||||||||||||||||||
-2 | All shares outstanding as of September 30, 2013 are expected to vest. | ||||||||||||||||||||||||
n/a—Not applicable | |||||||||||||||||||||||||
The following table provides certain information in connection with the Company’s share-based compensation arrangements for the periods presented (in thousands): | |||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||
Compensation expense: | |||||||||||||||||||||||||
Stock options | $ | 153 | $ | 246 | $ | 766 | $ | 892 | |||||||||||||||||
Restricted stock | 1,558 | 621 | 3,873 | 1,667 | |||||||||||||||||||||
Total | $ | 1,711 | $ | 867 | $ | 4,639 | $ | 2,559 | |||||||||||||||||
Deferred tax benefits: | |||||||||||||||||||||||||
Stock options | $ | 59 | $ | 95 | $ | 295 | $ | 344 | |||||||||||||||||
Restricted stock | 120 | 88 | 376 | 380 | |||||||||||||||||||||
Total | $ | 179 | $ | 183 | $ | 671 | $ | 724 | |||||||||||||||||
Realized tax benefits: | |||||||||||||||||||||||||
Stock options | $ | 139 | $ | 27 | $ | 1,889 | $ | 168 | |||||||||||||||||
Restricted stock | — | — | 374 | 291 | |||||||||||||||||||||
Total | $ | 139 | $ | 27 | $ | 2,263 | $ | 459 | |||||||||||||||||
Excess tax benefits(shortfall): | |||||||||||||||||||||||||
Stock options | $ | 48 | $ | (1,693 | ) | $ | 110 | $ | (1,623 | ) | |||||||||||||||
Restricted stock | — | — | (59 | ) | (142 | ) | |||||||||||||||||||
Total | $ | 48 | $ | (1,693 | ) | $ | 51 | $ | (1,765 | ) | |||||||||||||||
Weighted average fair value per option or share: | |||||||||||||||||||||||||
Stock option grants | $ | 0.88 | $ | 0.87 | $ | 0.65 | $ | 0.87 | |||||||||||||||||
Restricted stock grants | $ | 8.55 | $ | 3.37 | $ | 5.43 | $ | 3.37 | |||||||||||||||||
Intrinsic value of options exercised | $ | 359 | $ | 70 | $ | 4,896 | $ | 437 | |||||||||||||||||
Fair value of restricted stock vested | $ | — | $ | — | $ | 2,548 | $ | 1,164 | |||||||||||||||||
Cash received for strike price and tax withholdings | $ | — | $ | 134 | $ | — | $ | 652 | |||||||||||||||||
Shares acquired through cashless exercise (1) | 99 | — | 1,782 | 147 | |||||||||||||||||||||
Value of shares acquired through cashless exercise (1) | $ | 733 | $ | — | $ | 11,028 | $ | 583 | |||||||||||||||||
-1 | All shares acquired represent shares tendered to cover the strike price for options and tax withholdings on the intrinsic value of options exercised or restricted stock vested. These shares have been cancelled by the Company. | ||||||||||||||||||||||||
The following table presents the amount of unrecognized compensation expense as of the most recent balance sheet date and the weighted average period over which those expenses will be recorded for both stock options and restricted stock (dollars in thousands): | |||||||||||||||||||||||||
As of September 30, 2013 | |||||||||||||||||||||||||
Stock | Restricted | ||||||||||||||||||||||||
Options | Stock | ||||||||||||||||||||||||
Unrecognized expense | $ | 1,022 | $ | 4,458 | |||||||||||||||||||||
Weighted average remaining years | 2.15 | 0.94 | |||||||||||||||||||||||
Stock Options | |||||||||||||||||||||||||
On March 12, 2013, the Company granted the new Chief Operating Officer and Executive Vice President (“COO”) a stock option to purchase 100 thousand shares of common stock. The option has an exercise price of $4.51 per share, expires on March 12, 2018 and vests over three years as follows: one third on the one (1) year anniversary of the date of grant, one third on the two (2) year anniversary of the date of grant and one third on the three (3) year anniversary of the date of grant. | |||||||||||||||||||||||||
On July 8, 2013, the Company granted the COO an additional stock option to purchase 300 thousand shares of common stock. The option has an exercise price of $7.33 per share, expires on July 8, 2018 and vests over three years as follows: one third on the one (1) year anniversary of the date of grant, one third on the two (2) year anniversary of the date of grant and one third on the three (3) year anniversary of the date of grant. | |||||||||||||||||||||||||
Restricted Stock Grants | |||||||||||||||||||||||||
Effective April 1, 2013, the Company awarded the new President and Chief Executive Officer 500 thousand shares of restricted common stock, the new COO 250 thousand shares of restricted common stock, and the new Chief Administrative Officer 100 thousand shares of restricted common stock. Each restricted stock award vests in full on April 7, 2014. | |||||||||||||||||||||||||
Effective August 8, 2013, the Company awarded the new Chief Financial Officer 150 thousand shares of restricted common stock. The restricted stock award vests as to 75 thousand shares on October 1, 2014 and as to the remaining 75 thousand shares on October 1, 2015. |
Stockholders_Equity
Stockholders' Equity | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Equity [Abstract] | ' | ||||||||||||
Stockholders' Equity | ' | ||||||||||||
8 | Stockholders’ Equity | ||||||||||||
Common Stock | |||||||||||||
The following table summarizes the activity relating to shares of the Company’s common stock during the nine months ended September 30, 2013 (in thousands): | |||||||||||||
Issued | Treasury | Outstanding | |||||||||||
Shares | Shares | Shares | |||||||||||
Balance, as of December 31, 2012 | 41,889 | (1,018 | ) | 40,871 | |||||||||
Conversion of preferred stock | 220 | — | 220 | ||||||||||
Shares repurchased | — | (7,258 | ) | (7,258 | ) | ||||||||
Options exercised | 2,060 | — | 2,060 | ||||||||||
Restricted stock grant | 1,000 | — | 1,000 | ||||||||||
Shares acquired through cashless exercise (1) | (1,782 | ) | (1,782 | ) | |||||||||
Shares cancelled | (1,782 | ) | 1,782 | — | |||||||||
Balance, as of September 30, 2013 | 43,387 | (8,276 | ) | 35,111 | |||||||||
-1 | All shares acquired represent shares tendered to cover the strike price for options and tax withholdings on the intrinsic value of options exercised or restricted stock vested. These shares have been cancelled by the Company. | ||||||||||||
On April 1, 2013, UIH entered into a repurchase agreement with Bradley I. Meier, the Company’s former Chairman, President and Chief Executive Officer and a principal stockholder of UIH, to repurchase an aggregate of four million shares of UIH’s common stock owned by Mr. Meier. The initial repurchase of two million of Mr. Meier’s shares occurred on April 1, 2013, and the subsequent repurchase of two million shares occurred on May 23, 2013, each at a price of $4.02 per share, representing a discount from the then-current market price of UIH’s common stock. The repurchase of shares from Bradley I. Meier provides us with an opportunity to buy back shares at a discount to current stock price, while facilitating the orderly sale of shares by a large shareholder. | |||||||||||||
On May 23, 2013, UIH entered into a second repurchase agreement with Bradley I. Meier to repurchase an additional 2.666 million shares of UIH’s common stock owned by Mr. Meier. The repurchase of 2.666 million of Mr. Meier’s shares occurred on May 23, 2013 for a repurchase price of $4.50 per share, representing a discount from the then-current market price of UIH’s common stock. | |||||||||||||
On July 24, 2013, Norman M. Meier, the Company’s former Secretary and a former director of the Company, converted 44,075 shares of Series M Preferred Stock, at a conversion ratio of 5:1, into 220,375 shares of UIH’s common stock. | |||||||||||||
On August 1, 2013, UIH entered into a third repurchase agreement with Bradley I. Meier to repurchase an additional 350 thousand shares of UIH’s common stock owned by Mr. Meier. The repurchase of 350 thousand of Mr. Meier’s shares occurred on August 1, 2013 for a repurchase price of $7.02 per share, representing a discount from the then-current market price of UIH’s common stock. | |||||||||||||
On August 14, 2013, UIH entered into a repurchase agreement with Norman M. Meier to repurchase 241,933 shares of UIH’s common stock owned by Mr. Meier. The repurchase of 241,933 of Mr. Meier’s shares occurred on August 14, 2013 for a repurchase price of $7.57 per share, representing a discount from the then-current market price of UIH’s common stock. | |||||||||||||
Dividends | |||||||||||||
On February 8, 2013, the Company declared a cash dividend of $0.08 per share on its outstanding common stock paid on April 5, 2013, to the shareholders of record at the close of business on March 14, 2013. | |||||||||||||
On April 18, 2013, the Company declared a cash dividend of $0.08 per share on its outstanding common stock paid on June 17, 2013, to the shareholders of record at the close of business on June 3, 2013. | |||||||||||||
On August 27, 2013, the Company declared a cash dividend of $0.10 per share on its outstanding common stock paid on September 30, 2013, to the shareholders of record at the close of business on September 23, 2013. |
Related_Party_Transactions
Related Party Transactions | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Related Party Transactions [Abstract] | ' | ||||||||||||||||
Related Party Transactions | ' | ||||||||||||||||
9 | Related Party Transactions | ||||||||||||||||
Downes and Associates, a multi-line insurance adjustment corporation based in Deerfield Beach, Florida performs certain claims adjusting work for UPCIC. Downes and Associates is owned by Dennis Downes, who is the father of Sean P. Downes, Chairman, President and Chief Executive Officer of the Company. We believe that all amounts paid to Downes and Associates are no greater than amounts that would need to be paid to third parties on an arm’s-length basis for similar services. | |||||||||||||||||
Scott P. Callahan, a director of the Company, provides the Company with consulting services and advice with respect to the Company’s reinsurance and related matters through SPC Global RE Advisors LLC, an entity affiliated with Mr. Callahan. The Company entered into the consulting agreement with SPC Global RE Advisors LLC effective June 6, 2013. | |||||||||||||||||
The following table provides payments made by the Company to Downes and SPC Global RE Advisors LLC for the periods presented (in thousands): | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Downes and Associates | $ | 131 | $ | 131 | $ | 390 | $ | 391 | |||||||||
SPC Global RE Advisors LLC | $ | 38 | $ | — | $ | 38 | $ | — | |||||||||
There were no amounts due to Downes and Associates and SPC Global RE Advisors LLC as of September 30, 2013. No amounts were due to Downes and Associates as of December 31, 2012. Payments due to Downes and Associates and SPC Global RE Advisors LLC are generally made in the month the services are provided. | |||||||||||||||||
See “—Note 8 (Stockholders’ Equity)” for details on the repurchase agreements between UIH and each of Messrs. Bradley Meier and Norman Meier. | |||||||||||||||||
RenRe currently is, and has been, a participant in the Company’s reinsurance programs. On May 23, 2013, the Company entered into a series of contracts with RenRe and its affiliate, RenRe Ventures. As discussed in “—Note 6 (Long-Term Debt)”, UIH entered into an unsecured Term Loan with RenRe Ventures. The Term Loan is part of a series of agreements entered into by the Company, RenRe and RenRe Ventures pursuant to which, among other things, the Company has purchased a catastrophe risk-linked transaction contract from RenRe and entered into an agreement whereby RenRe will reserve reinsurance capacity for the Company’s reinsurance programs and receive a right of first refusal in respect of a portion thereof. As part of the series of agreements with RenRe and RenRe Ventures, on May 23, 2013, UIH, RenRe Ventures and Mr. Bradley Meier agreed to assign to RenRe Ventures a portion of UIH’s right of first refusal to repurchase shares of its common stock owned by Mr. Meier under the first repurchase agreement entered into on April 1, 2013. RenRe Ventures will have a right of first refusal to repurchase one-third of the shares offered by Mr. Meier to any third party, up to the lesser of 2 million shares or 4.99% of UIH’s outstanding common stock, through December 31, 2014. |
Income_Taxes
Income Taxes | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||||||
Income Taxes | ' | ||||||||||||||||
10 | Income Taxes | ||||||||||||||||
Deferred income taxes represent the temporary differences between the GAAP and tax basis of the Company’s assets and liabilities. The tax effects of temporary differences are as follows for the periods presented (in thousands): | |||||||||||||||||
As of | As of | ||||||||||||||||
September 30, | December 31, | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
Deferred income tax assets: | |||||||||||||||||
Unearned premiums | $ | 12,108 | $ | 11,430 | |||||||||||||
Advance premium | 1,790 | 1,132 | |||||||||||||||
Unpaid losses and LAE | 2,756 | 3,449 | |||||||||||||||
Regulatory assessments | 844 | 2,447 | |||||||||||||||
Share-based compensation | 1,477 | 3,048 | |||||||||||||||
Accrued wages | 453 | 778 | |||||||||||||||
Allowance for uncollectible receivables | 207 | 205 | |||||||||||||||
Additional tax basis of securities | 45 | 573 | |||||||||||||||
Unrealized losses on trading investments | — | 2,782 | |||||||||||||||
Capital loss carryforwards | 1,204 | — | |||||||||||||||
Other comprehensive loss | 306 | — | |||||||||||||||
Total deferred income tax assets | 21,190 | 25,844 | |||||||||||||||
Deferred income tax liabilities: | |||||||||||||||||
Deferred policy acquisition costs, net | (6,540 | ) | (6,666 | ) | |||||||||||||
Prepaid expenses | (625 | ) | — | ||||||||||||||
Unrealized gains on trading investments | (269 | ) | — | ||||||||||||||
Total deferred income tax liabilities | (7,434 | ) | (6,666 | ) | |||||||||||||
Net deferred income tax asset | $ | 13,756 | $ | 19,178 | |||||||||||||
Valuation allowances were deemed unnecessary as of September 30, 2013 and December 31, 2012, respectively, because management believes it is probable that the Company will generate taxable income sufficient to realize the tax benefits associated with the Company’s deferred income tax assets shown above in the near future. | |||||||||||||||||
Tax years that remain open for purposes of examination of its income tax liability due to taxing authorities, include the years ended December 31, 2012, 2011 and 2010. | |||||||||||||||||
The following table reconciles the statutory federal income tax rate to the Company’s effective tax rate for the periods presented: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Statutory federal income tax rate | 35 | % | 35 | % | 35 | % | 35 | % | |||||||||
Increases (decreases) resulting from: | |||||||||||||||||
Disallowed meals & entertainment | 0.2 | % | 0.5 | % | 0.3 | % | 0.3 | % | |||||||||
Disallowed compensation | 4.1 | % | 3.5 | % | 2.4 | % | 1.5 | % | |||||||||
Fines and penalties | 0 | % | — | 0.6 | % | — | |||||||||||
True-up of prior year tax returns | -0.9 | % | -1.7 | % | -0.4 | % | -0.4 | % | |||||||||
State income tax, net of federal tax benefit (1) | 3.6 | % | 3.6 | % | 3.6 | % | 3.6 | % | |||||||||
Other, net | 0.6 | % | — | 0.3 | % | — | |||||||||||
Effective tax rate | 42.6 | % | 40.9 | % | 41.8 | % | 40 | % | |||||||||
-1 | Included in income tax is Florida income tax at a statutory rate of 5.5%. |
Earnings_Per_Share
Earnings Per Share | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
Earnings Per Share | ' | ||||||||||||||||
11 | Earnings Per Share | ||||||||||||||||
Basic earnings per share (“EPS”) is based on the weighted average number of common shares outstanding for the period, excluding any dilutive common share equivalents. Diluted EPS reflects the potential dilution resulting from exercises of stock options, vesting of restricted stock and conversion of preferred stock. | |||||||||||||||||
The following table reconciles the numerator (i.e., income) and denominator (i.e., shares) of the basic and diluted earnings per share computations for the periods presented (in thousands, except per share data): | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Numerator for EPS: | |||||||||||||||||
Net income | $ | 14,407 | $ | 8,256 | $ | 43,395 | $ | 25,906 | |||||||||
Less: Preferred stock dividends | (14 | ) | (23 | ) | (24 | ) | (282 | ) | |||||||||
Income available to common stockholders | $ | 14,393 | $ | 8,233 | $ | 43,371 | $ | 25,624 | |||||||||
Denominator for EPS: | |||||||||||||||||
Weighted average common shares outstanding | 33,658 | 39,679 | 36,628 | 39,579 | |||||||||||||
Plus: Assumed conversion of stock-based compensation (1) | 1,630 | 282 | 1,291 | 390 | |||||||||||||
Assumed conversion of preferred stock | 323 | 489 | 433 | 489 | |||||||||||||
Weighted average diluted common shares outstanding | 35,611 | 40,450 | 38,352 | 40,458 | |||||||||||||
Basic earnings per common share | $ | 0.43 | $ | 0.21 | $ | 1.18 | $ | 0.65 | |||||||||
Diluted earnings per common share | $ | 0.4 | $ | 0.2 | $ | 1.13 | $ | 0.64 | |||||||||
-1 | Represents the dilutive effect of unvested restricted stock and unexercised stock options. | ||||||||||||||||
The Company purchased 592 thousand and 7.258 million shares of UIH’s common stock during the three and nine months ended September 30, 2013, respectively, which decreased weighted average common shares outstanding and weighted average diluted common shares outstanding for these periods. The effect was to increase diluted earnings per common share by $0.06 and $0.10 for the three and nine month periods ended September 30, 2013, respectively. See “—Note 8 (Stockholders’ Equity)” for details on the repurchases of UIH’s common stock. |
Other_Comprehensive_Income_Los
Other Comprehensive Income (Loss) | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||||||||||
Other Comprehensive Income (Loss) | ' | ||||||||||||||||||||||||
12 | Other Comprehensive Income (Loss) | ||||||||||||||||||||||||
The following table provides the components of other comprehensive income (loss) on a pre-tax and after-tax basis for the periods presented (in thousands): | |||||||||||||||||||||||||
For the Three Months | For the Nine Months | ||||||||||||||||||||||||
Ended September 30, 2013 | Ended September 30, 2013 | ||||||||||||||||||||||||
Pre-tax | Tax | After-tax | Pre-tax | Tax | After-tax | ||||||||||||||||||||
Net unrealized gains (losses) on available for sale investments arising during the periods | $ | 3,507 | $ | 1,353 | $ | 2,154 | $ | (739 | ) | $ | (285 | ) | $ | (454 | ) | ||||||||||
Less: realized gains (losses) on investments | 56 | 22 | 34 | 55 | 21 | 34 | |||||||||||||||||||
Change in net unrealized gains (losses) on available for sale investments | 3,451 | 1,331 | 2,120 | (794 | ) | (306 | ) | (488 | ) | ||||||||||||||||
Other comprehensive income (loss) | $ | 3,451 | $ | 1,331 | $ | 2,120 | $ | (794 | ) | $ | (306 | ) | $ | (488 | ) | ||||||||||
There were no amounts of other comprehensive income for the three and nine months ended September 30, 2012 and there were no amounts of accumulated other comprehensive income as of December 31, 2012. |
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended | |
Sep. 30, 2013 | ||
Commitments And Contingencies Disclosure [Abstract] | ' | |
Commitments and Contingencies | ' | |
13 | Commitments and Contingencies | |
Litigation | ||
Certain lawsuits have been filed against the Company. These lawsuits involve matters that are routine litigation incidental to the claims aspect of the Company’s business for which estimated losses are included in Unpaid Losses and Loss Adjustment Expenses in the Company’s Financial Statements. In the opinion of management, these lawsuits are not material individually or in the aggregate to the Company’s financial position or results of operations. Accruals made or assessments of materiality of disclosure related to probable or possible losses do not consider any anticipated insurance proceeds. | ||
Lease and Other | ||
On July 12, 2013, UPCIC entered into a lease agreement (“Lease Agreement”) for an office building containing 29,018 rentable square feet adjacent to its principal office in Fort Lauderdale, Florida (“Property”). The Company expects to use the Property for additional office and storage space. Pursuant to the Lease Agreement, the monthly rent for the Property is approximately $51 thousand and is subject to annual increases. The Company will amortize the scheduled annual rental increases over the term of the lease. The term of the lease is ten years, subject to UPCIC’s purchase of the Property as described below which is expected to take place no later than February 2015. The lease term will commence when the Company takes possession of the office building and begins making monthly rental payments which had not occurred as of September 30, 2013. Based on the terms of the Lease Agreement, the Company will be accounting for this arrangement as an operating lease. | ||
Also on July 12, 2013, UPCIC entered into a purchase agreement to acquire the Property (“Purchase Agreement”). The Purchase Agreement provides that the closing for the sale of the Property will take place no later than February 5, 2015. The closing for the sale of the Property is subject to certain closing conditions. The purchase price for the Property is $5.99 million, and UPCIC will receive a credit toward the purchase price for a portion of the rent it pays under the Lease Agreement. |
Fair_Value_Measurements
Fair Value Measurements | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
Fair Value Measurements | ' | ||||||||||||||||
14 | Fair Value Measurements | ||||||||||||||||
GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants as of the measurement date. GAAP describes three approaches to measuring the fair value of assets and liabilities: the market approach, the income approach and the cost approach. Each approach includes multiple valuation techniques. GAAP does not prescribe which valuation technique should be used when measuring fair value, but does establish a fair value hierarchy that prioritizes the inputs used in applying the various techniques. Inputs broadly refer to the assumptions that market participants use to make pricing decisions, including assumptions about risk. Level 1 inputs are given the highest priority in the hierarchy while Level 3 inputs are given the lowest priority. Assets and liabilities carried at fair value are classified in one of the following three categories based on the nature of the inputs to the valuation technique used: | |||||||||||||||||
• | Level 1—Observable inputs that reflect unadjusted quoted prices for identical assets or liabilities in active markets as of the reporting date. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis. | ||||||||||||||||
• | Level 2—Observable market-based inputs or unobservable inputs that are corroborated by market data. | ||||||||||||||||
• | Level 3—Unobservable inputs that are not corroborated by market data. These inputs reflect management’s best estimate of fair value using its own assumptions about the assumptions a market participant would use in pricing the asset or liability. | ||||||||||||||||
Summary of significant valuation techniques for assets measured at fair value on a recurring basis | |||||||||||||||||
Level 1 | |||||||||||||||||
Cash and cash equivalents and restricted cash and cash equivalents: Cash equivalents and restricted cash equivalents comprise actively traded money market funds that have daily quoted net asset values for identical assets that the Company can access. The carrying value of cash and cash equivalents and restricted cash and cash equivalents approximates fair value due to its liquid nature. | |||||||||||||||||
Common stock: Comprise actively traded, exchange-listed U.S. and international equity securities. Valuation is based on unadjusted quoted prices for identical assets in active markets that the Company can access. | |||||||||||||||||
Exchange-traded and mutual funds: Comprise actively traded funds. Valuation is based on daily quoted net asset values for identical assets in active markets that the Company can access. | |||||||||||||||||
Other investments: Comprise physical metal positions held by the Company. Valuation is based on unadjusted quoted prices for identical assets in active markets that the Company can access. | |||||||||||||||||
Level 2 | |||||||||||||||||
U.S. government obligations and agencies: Comprise U.S. Treasury Bills or Notes or U.S. Treasury Inflation Protected Securities (TIPS). The primary inputs to the valuation include quoted prices for identical assets in inactive markets or similar assets in active or inactive markets, contractual cash flows, benchmark yields and credit spreads. | |||||||||||||||||
Corporate Bonds: Comprise investment-grade fixed income securities. The primary inputs to the valuation include quoted prices for identical assets in inactive markets or similar assets in active or inactive markets, contractual cash flows, benchmark yields and credit spreads. | |||||||||||||||||
Mortgage-backed and asset-backed securities: Comprise securities that are collateralized by mortgage obligations and other assets. The primary inputs to the valuation include quoted prices for identical assets in inactive markets or similar assets in active or inactive markets, contractual cash flows, benchmark yields, collateral performance and credit spreads. | |||||||||||||||||
Derivatives: The primary inputs to the valuation include quoted prices or quoted net asset values for identical or similar assets in markets that are not active or highly active. | |||||||||||||||||
As required by GAAP, assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement requires judgment, and may affect their placement within the fair value hierarchy levels. | |||||||||||||||||
The following tables set forth by level within the fair value hierarchy the Company’s assets that were accounted for at fair value on a recurring basis as of the periods presented (in thousands): | |||||||||||||||||
Fair Value Measurements | |||||||||||||||||
As of September 30, 2013 | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Cash and cash equivalents | $ | 137,286 | $ | — | $ | — | $ | 137,286 | |||||||||
Restricted cash and cash equivalents | 2,600 | — | — | 2,600 | |||||||||||||
Available for sale portfolio: | |||||||||||||||||
Fixed maturities: | |||||||||||||||||
US government obligations and agencies | — | 104,532 | — | 104,532 | |||||||||||||
Corporate bonds | — | 98,978 | — | 98,978 | |||||||||||||
Mortgage-backed and asset-backed securities | — | 94,994 | — | 94,994 | |||||||||||||
Equity securities: | |||||||||||||||||
Common stock | 20,057 | — | 20,057 | ||||||||||||||
Mutual funds | 50,805 | — | 50,805 | ||||||||||||||
Total available for sale portfolio investments | $ | 70,862 | $ | 298,504 | $ | — | $ | 369,366 | |||||||||
Total assets accounted for at fair value | $ | 210,748 | $ | 298,504 | $ | — | $ | 509,252 | |||||||||
Fair Value Measurements | |||||||||||||||||
As of December 31, 2012 | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Cash and cash equivalents | $ | 347,392 | $ | — | $ | — | $ | 347,392 | |||||||||
Restricted cash and cash equivalents | 33,009 | — | — | 33,009 | |||||||||||||
Trading portfolio: | |||||||||||||||||
Fixed maturities: | |||||||||||||||||
US government obligations and agencies | — | 4,009 | — | 4,009 | |||||||||||||
Equity securities: | |||||||||||||||||
Common stock: | |||||||||||||||||
Metals and mining | 26,130 | — | — | 26,130 | |||||||||||||
Energy | 10,868 | — | — | 10,868 | |||||||||||||
Other | 8,215 | — | — | 8,215 | |||||||||||||
Exchange traded and mutual funds: | |||||||||||||||||
Metals and mining | 21,989 | — | — | 21,989 | |||||||||||||
Agriculture | 10,265 | — | — | 10,265 | |||||||||||||
Energy | 5,068 | 5,068 | |||||||||||||||
Indices | 2,506 | — | — | 2,506 | |||||||||||||
Non-hedging derivative liability, net | — | (21 | ) | — | (21 | ) | |||||||||||
Other investments | 317 | — | — | 317 | |||||||||||||
Total trading portfolio investments | $ | 85,358 | $ | 3,988 | $ | — | $ | 89,346 | |||||||||
Total assets (liabilities) accounted for at fair value | $ | 465,759 | $ | 3,988 | $ | — | $ | 469,747 | |||||||||
The Company utilizes third-party independent pricing services that provide a price quote for each fixed maturity, equity security and derivative. Management reviews the methodology used by the pricing services. If management believes that the price used by the pricing service does not reflect an orderly transaction between participants, management will use an alternative valuation methodology. There were no adjustments made by the Company to the prices obtained from the independent pricing source for any fixed maturities, equity securities or derivatives included in the tables above. | |||||||||||||||||
The following table summarizes the carrying value and estimated fair values of the Company’s financial instruments that are not carried at fair value (in thousands): | |||||||||||||||||
As of September 30, 2013 | |||||||||||||||||
Carrying value | (Level 3) | ||||||||||||||||
Estimated Fair | |||||||||||||||||
Value | |||||||||||||||||
Liabilities (debt): | |||||||||||||||||
Surplus note | $ | 19,118 | $ | 16,310 | |||||||||||||
Term loan | $ | 18,238 | $ | 18,238 | |||||||||||||
As of December 31, 2012 | |||||||||||||||||
Carrying value | (Level 3) | ||||||||||||||||
Estimated Fair | |||||||||||||||||
Value | |||||||||||||||||
Liabilities (debt): | |||||||||||||||||
Surplus note | $ | 20,221 | $ | 18,057 | |||||||||||||
Level 3 | |||||||||||||||||
Long-term debt: The fair value of the surplus note was determined by management from the expected cash flows discounted using the interest rate quoted by the issuer. The State Board of Administration of Florida (“SBA”) is the issuer of the surplus note and the quoted interest rate is below prevailing rates quoted by private lending institutions. However, as the Company’s use of funds from the surplus note is limited by the terms of the agreement, the Company has determined the interest rate quoted by the SBA to be appropriate for purposes of establishing the fair value of the note. | |||||||||||||||||
The fair value of the Term Loan approximates the carrying value given the original issue discount which was calculated based on the present value of future cash flows using the Company’s effective borrowing rate for similar instruments. |
Subsequent_Events
Subsequent Events | 9 Months Ended | |
Sep. 30, 2013 | ||
Subsequent Events [Abstract] | ' | |
Subsequent Events | ' | |
15 | Subsequent Events | |
The Company performed an evaluation of subsequent events through the date the Financial Statements were issued and determined there were no recognized or unrecognized subsequent events that would require an adjustment or additional disclosure in the Financial Statements as of September 30, 2013 except for the following: | ||
On October 4, 2013, UPCIC and the OIR signed a Consent Order settling the matters to which the OIR Order related. See “—Note 5 (Insurance Operations)” for additional discussion of the OIR Order and Consent Order. The Consent Order clarifies language contained in the OIR Order, imposes certain requirements upon UPCIC, and requires UPCIC to pay an administrative fine of $1.3 million, which was paid by the Company on October 18, 2013. | ||
On October 8, 2013, the Company took possession of an office building which commenced obligations under the Lease Agreement. See “—Note 13 (Commitments and Contingencies)” for details of this lease arrangement. |
Nature_of_Operations_and_Basis1
Nature of Operations and Basis of Presentation (Policies) | 9 Months Ended | ||||||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||||||||||||||||||||
Nature of Operations | ' | ||||||||||||||||||||||||||||||||
Nature of Operations | |||||||||||||||||||||||||||||||||
Universal Insurance Holdings, Inc. (“UIH”) is a Delaware corporation originally incorporated as Universal Heights, Inc. in November 1990. UIH and its wholly-owned subsidiaries (collectively, the “Company”) are a vertically integrated insurance holding company performing all aspects of insurance underwriting, distribution and claims. Through its wholly-owned subsidiaries, including Universal Property & Casualty Insurance Company (“UPCIC”) and American Platinum Property and Casualty Insurance Company (“APPCIC”), collectively referred to as the “Insurance Entities”, the Company is principally engaged in the property and casualty insurance business offered primarily through a network of independent agents. Risk from catastrophic losses is managed through the use of reinsurance agreements. The Company’s primary product is homeowners insurance offered in seven states as of September 30, 2013, including Florida, which comprises the vast majority of the Company’s in-force policies. See “—Note 5 (Insurance Operations)” for more information regarding the Company’s insurance operations. | |||||||||||||||||||||||||||||||||
The Company generates revenues primarily from the collection of premiums and the investment of available funds in excess of those retained for claims-paying obligations and insurance operations. Other significant sources of revenue include commissions collected from reinsurers and policy fees collected from policyholders through the Company’s affiliated managing general agent. | |||||||||||||||||||||||||||||||||
Basis of Presentation | ' | ||||||||||||||||||||||||||||||||
Basis of Presentation | |||||||||||||||||||||||||||||||||
The Company has prepared the accompanying unaudited Condensed Consolidated Financial Statements (“Financial Statements”) in accordance with the rules and regulations of the United States Securities and Exchange Commission (“SEC”) for interim financial information. Accordingly, they do not include all of the information and footnotes required by United States Generally Accepted Accounting Principles (“GAAP”) for complete financial statements. Therefore, the Financial Statements should be read in conjunction with the audited Consolidated Financial Statements contained in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2012, filed with the SEC on March 8, 2013. The condensed consolidated balance sheet at December 31, 2012, was derived from audited financial statements, but does not include all disclosures required by GAAP. In the opinion of management, all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation have been included in the Financial Statements. The results for interim periods do not necessarily indicate the results that may be expected for any other interim period or for the full year. | |||||||||||||||||||||||||||||||||
The Financial Statements include the accounts of UIH and its wholly owned subsidiaries. All material intercompany balances and transactions have been eliminated in consolidation. | |||||||||||||||||||||||||||||||||
Management must make estimates and assumptions that affect amounts reported in the Company’s Financial Statements and in disclosures of contingent assets and liabilities. Actual results could differ from those estimates. | |||||||||||||||||||||||||||||||||
Concentrations of Credit Risk | ' | ||||||||||||||||||||||||||||||||
Concentrations of Credit Risk. The Company is exposed to concentrations of credit risk, consisting principally of cash and cash equivalents, restricted cash and cash equivalents, debt securities, premiums receivable, prepaid reinsurance premiums, reinsurance receivable and reinsurance recoverable. | |||||||||||||||||||||||||||||||||
The Company maintains depository relationships with SunTrust Bank, Wells Fargo Bank N.A., Deutsche Bank Securities, Inc., and State Street Bank and Trust Company and invests excess cash with custodial institutions that invest primarily in money market accounts consisting of or collateralized by short-term U.S. Treasury securities and other U.S. government guaranteed securities. These accounts are held primarily by SunTrust Bank, Deutsche Bank Securities, Inc., and State Street Bank and Trust Company. The Company regularly evaluates the financial strength of the institutions with which it maintains depository relationships. The following table presents the ratings from each of the rating agencies: | |||||||||||||||||||||||||||||||||
Current Ratings | |||||||||||||||||||||||||||||||||
Institution | Standard and | Moody’s | |||||||||||||||||||||||||||||||
Poor’s Rating | Investors | ||||||||||||||||||||||||||||||||
Services | Service, Inc. | ||||||||||||||||||||||||||||||||
Sun Trust Bank | BBB+ | A3 | |||||||||||||||||||||||||||||||
Wells Fargo Bank N.A. | AA- | Aa3 | |||||||||||||||||||||||||||||||
Deutsche Bank Securities, Inc. | A | A2 | |||||||||||||||||||||||||||||||
State Street Bank and Trust Company | AA- | Aa2 | |||||||||||||||||||||||||||||||
Restricted cash and cash equivalents are maintained in money market accounts consisting of U.S. Treasury and government agency securities. | |||||||||||||||||||||||||||||||||
The following table presents the amount of cash and cash equivalents as of the periods presented (in thousands): | |||||||||||||||||||||||||||||||||
Cash and cash equivalents | |||||||||||||||||||||||||||||||||
As of September 30, 2013 | As of December 31, 2012 | ||||||||||||||||||||||||||||||||
Institution | Cash | Money | Total | % by | Cash | Money | Total | % by | |||||||||||||||||||||||||
Market Funds | institution | Market Funds | institution | ||||||||||||||||||||||||||||||
U.S. Bank IT&C | $ | — | $ | — | $ | — | — | $ | — | $ | 40,463 | $ | 40,463 | 11.6 | % | ||||||||||||||||||
SunTrust Bank | 528 | 3,696 | 4,224 | 3.1 | % | 773 | 1,055 | 1,828 | 0.5 | % | |||||||||||||||||||||||
SunTrust Bank Escrow Services | — | 93,794 | 93,794 | 68.3 | % | — | 300,843 | 300,843 | 86.6 | % | |||||||||||||||||||||||
Wells Fargo Bank N.A. | 2,701 | — | 2,701 | 2 | % | 1,991 | 3 | 1,994 | 0.6 | % | |||||||||||||||||||||||
Deutsche Bank Securities, Inc. | — | 21,042 | 21,042 | 15.3 | % | 1,796 | 468 | 2,264 | 0.7 | % | |||||||||||||||||||||||
State Street Bank and Trust Company | — | 14,800 | 14,800 | 10.8 | % | — | — | — | — | ||||||||||||||||||||||||
All Other Banking Institutions | 725 | — | 725 | 0.5 | % | — | — | — | — | ||||||||||||||||||||||||
Total | $ | 3,954 | $ | 133,332 | $ | 137,286 | 100 | % | $ | 4,560 | $ | 342,832 | $ | 347,392 | 100 | % | |||||||||||||||||
The following table presents the amount of restricted cash and cash equivalents as of the periods presented (in thousands): | |||||||||||||||||||||||||||||||||
Restricted cash and cash equivalents | |||||||||||||||||||||||||||||||||
As of September 30, 2013 | As of December 31, 2012 | ||||||||||||||||||||||||||||||||
Institution | State Deposits | % by | State Deposits | % by | |||||||||||||||||||||||||||||
institution | institution | ||||||||||||||||||||||||||||||||
U.S. Bank IT&C | $ | 800 | 30.8 | % | $ | 800 | 2.4 | % | |||||||||||||||||||||||||
Florida Department of Financial Services | 1,800 | 69.2 | % | 32,209 | 97.6 | % | |||||||||||||||||||||||||||
Total | $ | 2,600 | 100 | % | $ | 33,009 | 100 | % | |||||||||||||||||||||||||
Concentrations of credit risk with respect to premiums receivable are limited due to the large number of individuals comprising the Company’s customer base. However, the majority of the Company’s revenues are currently derived from products and services offered to customers in Florida, which could be adversely affected by economic downturns, an increase in competition or other environmental changes. | |||||||||||||||||||||||||||||||||
In order to reduce credit risk for amounts due from reinsurers, the Insurance Entities seek to do business with financially sound reinsurance companies and regularly evaluate the financial strength of all reinsurers used. | |||||||||||||||||||||||||||||||||
The following table presents the unsecured amounts due from the Company’s reinsurers whose aggregate balance exceeded 3% of the Company’s stockholders’ equity as of the periods presented (in thousands): | |||||||||||||||||||||||||||||||||
Current Ratings | As of | ||||||||||||||||||||||||||||||||
Reinsurer | AM Best | Standard and | Moody’s | September 30, | December 31, | ||||||||||||||||||||||||||||
Company | Poor’s Rating | Investors | 2013 | 2012 | |||||||||||||||||||||||||||||
Services | Service, Inc. | ||||||||||||||||||||||||||||||||
Everest Reinsurance Company | A+ | A+ | A1 | $ | 84,387 | $ | 44,392 | ||||||||||||||||||||||||||
Florida Hurricane Catastrophe Fund | n/a | n/a | n/a | — | 31,970 | ||||||||||||||||||||||||||||
Odyssey Reinsurance Company | A | A- | A3 | 151,600 | 192,096 | ||||||||||||||||||||||||||||
Total (1) | $ | 235,987 | $ | 268,458 | |||||||||||||||||||||||||||||
-1 | Amounts represent prepaid reinsurance premiums, reinsurance receivables, and net recoverables for paid and unpaid losses, including incurred but not reported reserves, loss adjustment expenses, and offsetting reinsurance payables. | ||||||||||||||||||||||||||||||||
n/a—No rating available | |||||||||||||||||||||||||||||||||
Recently Issued Accounting Pronouncements | ' | ||||||||||||||||||||||||||||||||
Recently Issued Accounting Pronouncements | |||||||||||||||||||||||||||||||||
In July 2013, the Financial Accounting Standards Board (FASB) issued accounting guidance on the presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss or a tax credit carryforward exists. Under this guidance, an unrecognized tax benefit, or a portion of an unrecognized tax benefit, should generally be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward. This guidance is effective for fiscal years and interim periods beginning after December 15, 2013, but earlier adoption is permitted. We plan to adopt the standard prospectively on its required effective date of January 1, 2014 and are assessing the effect of adopting the standard on our Condensed Consolidated Balance Sheets, Statements of Income and Statements of Cash Flows. | |||||||||||||||||||||||||||||||||
In June 2011, the FASB updated its guidance to the Comprehensive Income Topic 220 of the FASB Accounting Standards Codification (“ASC”) and in February 2013, the FASB further amended such topic. This February 2013 guidance requires disclosure about amounts reclassified out of accumulated other comprehensive income by component. In addition, an entity is required to present, either on the face of the statement of operations or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income, but only if the amount reclassified is required to be reclassified to net income in its entirety in the same reporting period. For amounts that are not required to be reclassified in their entirety to net income, an entity is required to cross-reference to other disclosures that provide additional detail about those amounts. This guidance is to be applied prospectively to interim and annual reporting periods beginning after December 15, 2012. The Company adopted this guidance effective January 1, 2013. The adoption of this guidance will result in additional disclosure but did not impact the Company’s results of operations, cash flows or financial position. The updated guidance provided by the FASB in June 2011 increases the prominence of items reported in other comprehensive income by eliminating the option of presenting components of other comprehensive income as part of the statement of changes in stockholders’ equity. The guidance requires that total comprehensive income (including both the net income components and other comprehensive income components) be reported in either a single continuous statement of comprehensive income (the approach currently used in the Company’s financial statements), or two separate but consecutive statements. This guidance is to be applied retrospectively to fiscal years (and interim periods within those years) beginning after December 15, 2011. The Company adopted this guidance effective January 1, 2012. The adoption did not have an impact on the presentation of the Company’s financial statements and notes herein, as the Company has presented amounts of other comprehensive income consistent with this updated guidance. | |||||||||||||||||||||||||||||||||
In May 2011, the FASB updated its guidance related to the Fair Value Measurement, Topic 820 of the ASC, to achieve common fair value measurement and disclosure requirements with International Financial Reporting Standards. The amendments change the wording used to describe many of the requirements under GAAP, to clarify the intent of application of existing fair value measurement and disclosure requirements, and to change particular principles or requirements for measuring and disclosing fair value measurements. The amendments are to be applied prospectively to interim and annual reporting periods beginning after December 15, 2011. The Company adopted this guidance effective January 1, 2012. The adoption of this guidance resulted in additional disclosure but did not impact the Company’s results of operations, cash flows or financial position. | |||||||||||||||||||||||||||||||||
In September 2010, the FASB issued guidance related to accounting for costs associated with acquiring or renewing insurance contracts. This guidance defines allowable deferred policy acquisition costs as costs incurred by insurance entities for the successful acquisition of new and renewal contracts. Such costs result directly from and are essential to the contract transaction(s) and would not have been incurred by the insurance entity had the contract(s) not occurred. This guidance is effective for periods beginning after December 15, 2011, with early adoption permitted. The Company adopted this guidance prospectively effective January 1, 2012. Under the new guidance, the Company’s net deferred policy acquisition costs were reduced from $13.0 million to $11.4 million, a difference of 13% at December 31, 2011. The resulting $1.6 million difference was charged directly to earnings during the three months ended March 31, 2012. This charge represents a charge-off of capitalized costs existing at December 31, 2011, which would have been amortized to earnings within a twelve-month period under the old guidance. |
Significant_Accounting_Policie1
Significant Accounting Policies (Tables) | 9 Months Ended | ||||||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||||||||||||||||||||
Cash and Cash Equivalents | ' | ||||||||||||||||||||||||||||||||
The following table presents the amount of cash and cash equivalents as of the periods presented (in thousands): | |||||||||||||||||||||||||||||||||
Cash and cash equivalents | |||||||||||||||||||||||||||||||||
As of September 30, 2013 | As of December 31, 2012 | ||||||||||||||||||||||||||||||||
Institution | Cash | Money | Total | % by | Cash | Money | Total | % by | |||||||||||||||||||||||||
Market Funds | institution | Market Funds | institution | ||||||||||||||||||||||||||||||
U.S. Bank IT&C | $ | — | $ | — | $ | — | — | $ | — | $ | 40,463 | $ | 40,463 | 11.6 | % | ||||||||||||||||||
SunTrust Bank | 528 | 3,696 | 4,224 | 3.1 | % | 773 | 1,055 | 1,828 | 0.5 | % | |||||||||||||||||||||||
SunTrust Bank Escrow Services | — | 93,794 | 93,794 | 68.3 | % | — | 300,843 | 300,843 | 86.6 | % | |||||||||||||||||||||||
Wells Fargo Bank N.A. | 2,701 | — | 2,701 | 2 | % | 1,991 | 3 | 1,994 | 0.6 | % | |||||||||||||||||||||||
Deutsche Bank Securities, Inc. | — | 21,042 | 21,042 | 15.3 | % | 1,796 | 468 | 2,264 | 0.7 | % | |||||||||||||||||||||||
State Street Bank and Trust Company | — | 14,800 | 14,800 | 10.8 | % | — | — | — | — | ||||||||||||||||||||||||
All Other Banking Institutions | 725 | — | 725 | 0.5 | % | — | — | — | — | ||||||||||||||||||||||||
Total | $ | 3,954 | $ | 133,332 | $ | 137,286 | 100 | % | $ | 4,560 | $ | 342,832 | $ | 347,392 | 100 | % | |||||||||||||||||
Restricted Cash and Cash Equivalents | ' | ||||||||||||||||||||||||||||||||
The following table presents the amount of restricted cash and cash equivalents as of the periods presented (in thousands): | |||||||||||||||||||||||||||||||||
Restricted cash and cash equivalents | |||||||||||||||||||||||||||||||||
As of September 30, 2013 | As of December 31, 2012 | ||||||||||||||||||||||||||||||||
Institution | State Deposits | % by | State Deposits | % by | |||||||||||||||||||||||||||||
institution | institution | ||||||||||||||||||||||||||||||||
U.S. Bank IT&C | $ | 800 | 30.8 | % | $ | 800 | 2.4 | % | |||||||||||||||||||||||||
Florida Department of Financial Services | 1,800 | 69.2 | % | 32,209 | 97.6 | % | |||||||||||||||||||||||||||
Total | $ | 2,600 | 100 | % | $ | 33,009 | 100 | % | |||||||||||||||||||||||||
Unsecured Net Amounts Due from Reinsurers Whose Aggregate Balance Exceeded 3% of Stockholders' Equity | ' | ||||||||||||||||||||||||||||||||
The following table presents the unsecured amounts due from the Company’s reinsurers whose aggregate balance exceeded 3% of the Company’s stockholders’ equity as of the periods presented (in thousands): | |||||||||||||||||||||||||||||||||
Current Ratings | As of | ||||||||||||||||||||||||||||||||
Reinsurer | AM Best | Standard and | Moody’s | September 30, | December 31, | ||||||||||||||||||||||||||||
Company | Poor’s Rating | Investors | 2013 | 2012 | |||||||||||||||||||||||||||||
Services | Service, Inc. | ||||||||||||||||||||||||||||||||
Everest Reinsurance Company | A+ | A+ | A1 | $ | 84,387 | $ | 44,392 | ||||||||||||||||||||||||||
Florida Hurricane Catastrophe Fund | n/a | n/a | n/a | — | 31,970 | ||||||||||||||||||||||||||||
Odyssey Reinsurance Company | A | A- | A3 | 151,600 | 192,096 | ||||||||||||||||||||||||||||
Total (1) | $ | 235,987 | $ | 268,458 | |||||||||||||||||||||||||||||
-1 | Amounts represent prepaid reinsurance premiums, reinsurance receivables, and net recoverables for paid and unpaid losses, including incurred but not reported reserves, loss adjustment expenses, and offsetting reinsurance payables. |
Investments_Tables
Investments (Tables) | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||
Cash And Cash Equivalents [Abstract] | ' | ||||||||||||||||||||||||
Investment Holdings by Type of Instrument | ' | ||||||||||||||||||||||||
The following table presents the Company’s investment holdings by type of instrument as of the periods presented (in thousands): | |||||||||||||||||||||||||
As of September 30, 2013 | As of December 31, 2012 | ||||||||||||||||||||||||
Cost or | Fair Value | Carrying | Cost or | Fair Value | Carrying | ||||||||||||||||||||
Amortized | Value | Amortized | Value | ||||||||||||||||||||||
Cost | Cost (4) | ||||||||||||||||||||||||
Cash and cash equivalents (1) | $ | 137,286 | $ | 137,286 | $ | 137,286 | $ | 347,392 | $ | 347,392 | $ | 347,392 | |||||||||||||
Restricted cash and cash equivalents | 2,600 | 2,600 | 2,600 | 33,009 | 33,009 | 33,009 | |||||||||||||||||||
Trading portfolio: | |||||||||||||||||||||||||
Fixed maturities: | |||||||||||||||||||||||||
U.S. government obligations and agencies | — | — | — | 3,192 | 4,009 | 4,009 | |||||||||||||||||||
Equity securities: (4) | |||||||||||||||||||||||||
Common stock: | |||||||||||||||||||||||||
Metals and mining | — | — | — | 31,113 | 26,130 | 26,130 | |||||||||||||||||||
Energy | — | — | — | 12,053 | 10,868 | 10,868 | |||||||||||||||||||
Other | — | — | — | 8,416 | 8,215 | 8,215 | |||||||||||||||||||
Exchange-traded and mutual funds: | |||||||||||||||||||||||||
Metals and mining | — | — | — | 22,687 | 21,989 | 21,989 | |||||||||||||||||||
Agriculture | — | — | — | 10,705 | 10,265 | 10,265 | |||||||||||||||||||
Energy | — | — | — | 4,992 | 5,068 | 5,068 | |||||||||||||||||||
Indices | — | — | — | 2,827 | 2,506 | 2,506 | |||||||||||||||||||
Non-hedging derivative asset (liability), net (2) | — | — | — | 69 | (21 | ) | (21 | ) | |||||||||||||||||
Other investments (3) | — | — | — | 517 | 317 | 317 | |||||||||||||||||||
Total trading portfolio investments | — | — | — | 96,571 | 89,346 | 89,346 | |||||||||||||||||||
Available for sale portfolio: | |||||||||||||||||||||||||
Fixed maturities: | |||||||||||||||||||||||||
U.S. government obligations and agencies | 105,265 | 104,532 | 104,532 | — | — | — | |||||||||||||||||||
Corporate bonds | 99,659 | 98,978 | 98,978 | — | — | — | |||||||||||||||||||
Mortgage-backed and asset-backed securities | 95,220 | 94,994 | 94,994 | — | — | — | |||||||||||||||||||
Equity securities: | |||||||||||||||||||||||||
Common stock | 19,126 | 20,057 | 20,057 | — | — | — | |||||||||||||||||||
Mutual funds | 50,891 | 50,805 | 50,805 | — | — | — | |||||||||||||||||||
Total available for sale investments | 370,161 | 369,366 | 369,366 | — | — | — | |||||||||||||||||||
Total investments | $ | 510,047 | $ | 509,252 | $ | 509,252 | $ | 476,972 | $ | 469,747 | $ | 469,747 | |||||||||||||
-1 | Cash and cash equivalents include short-term debt securities consisting of direct obligations of the U.S. Treasury or money-market accounts that invest in or are collateralized by direct obligations of the U.S. Treasury and other U.S. government guaranteed securities. | ||||||||||||||||||||||||
-2 | Derivatives are included in Other assets and Other liabilities and accrued expenses in the Consolidated Balance Sheets. | ||||||||||||||||||||||||
-3 | Other investments represent physical metals held by the Company and are included in Other assets in the Consolidated Balance Sheets. | ||||||||||||||||||||||||
-4 | The cost for equity securities as of December 31, 2012 has been restated from the amounts reported on Form 10-K for the year ended December 31, 2012. The amounts previously reported represented the cost determined under a statutory basis of accounting. The restatement does not affect any amounts reported in the consolidated financial statements including the carrying amount of equity securities reported in the consolidated balance sheet as of December 31, 2012 and unrealized gains and losses reported in the consolidated statement of income for the year ended December 31, 2012. | ||||||||||||||||||||||||
Investment Income (Expense) Comprised Primarily of Interest and Dividends | ' | ||||||||||||||||||||||||
The following table presents the components of net investment income, comprised primarily of interest and dividends, for the periods presented (in thousands): | |||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||
Cash and cash equivalents (1) | $ | 135 | $ | 243 | $ | 377 | $ | 483 | |||||||||||||||||
Fixed maturities | 439 | 42 | 409 | 53 | |||||||||||||||||||||
Equity securities | 363 | 95 | 729 | 313 | |||||||||||||||||||||
Total investment income | 937 | 380 | 1,515 | 849 | |||||||||||||||||||||
Less investment expenses | (555 | ) | (165 | ) | (985 | ) | (686 | ) | |||||||||||||||||
Net investment (expense) income | $ | 382 | $ | 215 | $ | 530 | $ | 163 | |||||||||||||||||
-1 | Includes interest earned on restricted cash and cash equivalents. | ||||||||||||||||||||||||
Effect of Trading Activities by Type of Instrument and by Line Item in Condensed Consolidated Statements of Income | ' | ||||||||||||||||||||||||
The following table provides the effect of trading activities on the Company’s results of operations for the periods presented by type of instrument and by line item in the Condensed Consolidated Statements of Income (in thousands): | |||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||
Realized gains (losses) on investments: | |||||||||||||||||||||||||
Fixed maturities | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||
Equity securities | — | (3,299 | ) | (15,969 | ) | (12,728 | ) | ||||||||||||||||||
Derivatives (non-hedging instruments) (1) | — | 157 | (68 | ) | 432 | ||||||||||||||||||||
Total realized gains (losses) on trading portfolio | — | (3,142 | ) | (16,037 | ) | (12,296 | ) | ||||||||||||||||||
Change in unrealized gains (losses) on investments: | |||||||||||||||||||||||||
Fixed maturities | — | 55 | 13 | 192 | |||||||||||||||||||||
Equity securities | — | 8,119 | 7,758 | 11,291 | |||||||||||||||||||||
Derivatives (non-hedging instruments) (1) | — | (55 | ) | 89 | 62 | ||||||||||||||||||||
Other | — | (28 | ) | 14 | (55 | ) | |||||||||||||||||||
Total change in unrealized gains (losses) on trading portfolio | — | 8,091 | 7,874 | 11,490 | |||||||||||||||||||||
Net gains (losses) recognized on trading portfolio | $ | — | $ | 4,949 | $ | (8,163 | ) | $ | (806 | ) | |||||||||||||||
-1 | This table provides the alternative quantitative disclosures permitted for derivatives that are not used as hedging instruments and are included in the trading portfolio. | ||||||||||||||||||||||||
Cost or Amortized Cost and Fair Value of Securities Available for Sale | ' | ||||||||||||||||||||||||
The following table provides the cost or amortized cost and fair value of securities available for sale as of the period presented (in thousands): | |||||||||||||||||||||||||
September 30, 2013 | |||||||||||||||||||||||||
Cost or | Gross Unrealized | Gross Unrealized | Fair Value | ||||||||||||||||||||||
Amortized Cost | Gains | Losses | |||||||||||||||||||||||
Fixed Maturities: | |||||||||||||||||||||||||
US government and agency obligations | $ | 105,265 | $ | 2 | $ | (735 | ) | $ | 104,532 | ||||||||||||||||
Corporate bonds | 99,659 | 263 | (944 | ) | 98,978 | ||||||||||||||||||||
Mortgage-backed and asset-backed securities | 95,220 | 125 | (351 | ) | 94,994 | ||||||||||||||||||||
Equity Securities: | |||||||||||||||||||||||||
Common stock | 19,126 | 1,214 | (283 | ) | 20,057 | ||||||||||||||||||||
Mutual funds | 50,891 | 986 | (1,072 | ) | 50,805 | ||||||||||||||||||||
Total | $ | 370,161 | $ | 2,590 | $ | (3,385 | ) | $ | 369,366 | ||||||||||||||||
Summarized Fair Value and Gross Unrealized Losses on Securities Available for Sale | ' | ||||||||||||||||||||||||
The following table summarizes the fair value and gross unrealized losses on securities available for sale, aggregated by major investment category and length of time that individual securities have been in a continuous unrealized loss position as of September 30, 2013 (in thousands): | |||||||||||||||||||||||||
Less than 12 months | 12 months or longer | ||||||||||||||||||||||||
Number | Fair value | Unrealized | Number | Fair value | Unrealized | ||||||||||||||||||||
of issues | losses | of issues | losses | ||||||||||||||||||||||
Fixed maturities: | |||||||||||||||||||||||||
US government and agency obligations | 7 | $ | 92,376 | $ | (735 | ) | — | $ | — | $ | — | ||||||||||||||
Corporate bonds | 68 | 81,640 | (944 | ) | — | — | — | ||||||||||||||||||
Mortgage-backed and asset-backed securities | 17 | 73,630 | (351 | ) | — | — | — | ||||||||||||||||||
Equity securities: | |||||||||||||||||||||||||
Common stock | 22 | 6,449 | (284 | ) | — | — | — | ||||||||||||||||||
Mutual funds | 5 | 20,430 | (1,071 | ) | — | — | — | ||||||||||||||||||
Total | 119 | $ | 274,525 | $ | (3,385 | ) | — | $ | — | $ | — | ||||||||||||||
Amortized Cost and Fair Value of Fixed Maturities Available for Sale by Contractual Maturity | ' | ||||||||||||||||||||||||
The following table presents the amortized cost and fair value of fixed maturities available for sale by contractual maturity as of September 30, 2013 (in thousands): | |||||||||||||||||||||||||
Fixed Maturities | |||||||||||||||||||||||||
Securities Available for Sale | |||||||||||||||||||||||||
Amortized Cost | Fair Value | ||||||||||||||||||||||||
Due in one year or less | $ | 5,807 | $ | 5,804 | |||||||||||||||||||||
Due after one year through five years | 193,942 | 192,804 | |||||||||||||||||||||||
Due after five years through ten years | 5,175 | 4,902 | |||||||||||||||||||||||
Due after ten years | — | — | |||||||||||||||||||||||
Mortgage-backed and asset-backed securities | 95,220 | 94,994 | |||||||||||||||||||||||
Total | $ | 300,144 | $ | 298,504 | |||||||||||||||||||||
Summary of Securities Available for Sale | ' | ||||||||||||||||||||||||
The following table provides certain information related to securities available for sale during the periods presented (in thousands): | |||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||
September 30, 2013 | September 30, 2013 | ||||||||||||||||||||||||
Sales proceeds (fair value) | $ | 376 | $ | 390 | |||||||||||||||||||||
Gross realized gains | $ | 56 | $ | 56 | |||||||||||||||||||||
Gross realized losses | $ | — | $ | (1 | ) | ||||||||||||||||||||
Other than temporary losses | $ | — | $ | — |
Reinsurance_Tables
Reinsurance (Tables) | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||
Insurance [Abstract] | ' | ||||||||||||||||||||||||
Reinsurance Arrangements | ' | ||||||||||||||||||||||||
The Company’s reinsurance arrangements had the following effect on certain items in the Condensed Consolidated Statements of Income for the periods presented (in thousands): | |||||||||||||||||||||||||
Three Months Ended September 30, 2013 | Nine Months Ended September 30, 2013 | ||||||||||||||||||||||||
Premiums | Premiums | Loss and Loss | Premiums | Premiums | Loss and Loss | ||||||||||||||||||||
Written | Earned | Adjustment | Written | Earned | Adjustment | ||||||||||||||||||||
Expenses | Expenses | ||||||||||||||||||||||||
Direct | $ | 186,079 | $ | 199,323 | $ | 53,600 | $ | 610,164 | $ | 590,792 | $ | 154,547 | |||||||||||||
Ceded | (124,961 | ) | (130,396 | ) | (25,265 | ) | (400,175 | ) | (389,590 | ) | (74,529 | ) | |||||||||||||
Net | $ | 61,118 | $ | 68,927 | $ | 28,335 | $ | 209,989 | $ | 201,202 | $ | 80,018 | |||||||||||||
Three Months Ended September 30, 2012 | Nine Months Ended September 30, 2012 | ||||||||||||||||||||||||
Premiums | Premiums | Loss and Loss | Premiums | Premiums | Loss and Loss | ||||||||||||||||||||
Written | Earned | Adjustment | Written | Earned | Adjustment | ||||||||||||||||||||
Expenses | Expenses | ||||||||||||||||||||||||
Direct | $ | 192,986 | $ | 191,225 | $ | 68,286 | $ | 605,557 | $ | 556,685 | $ | 177,425 | |||||||||||||
Ceded | (132,776 | ) | (131,713 | ) | (31,985 | ) | (398,643 | ) | (392,839 | ) | (85,513 | ) | |||||||||||||
Net | $ | 60,210 | $ | 59,512 | $ | 36,301 | $ | 206,914 | $ | 163,846 | $ | 91,912 | |||||||||||||
Prepaid Reinsurance Premiums and Reinsurance Recoverable and Receivable | ' | ||||||||||||||||||||||||
The following prepaid reinsurance premiums and reinsurance recoverable and receivable are reflected in the Condensed Consolidated Balance Sheets as of the periods presented (in thousands): | |||||||||||||||||||||||||
As of | As of | ||||||||||||||||||||||||
September 30, 2013 | December 31, 2012 | ||||||||||||||||||||||||
Prepaid reinsurance premiums | $ | 250,506 | $ | 239,921 | |||||||||||||||||||||
Reinsurance recoverable on unpaid losses and LAE | $ | 63,202 | $ | 81,415 | |||||||||||||||||||||
Reinsurance recoverable on paid losses | 11,698 | 7,776 | |||||||||||||||||||||||
Reinsurance receivable, net | 24,268 | 24,334 | |||||||||||||||||||||||
Reinsurance recoverable and receivable | $ | 99,168 | $ | 113,525 | |||||||||||||||||||||
Insurance_Operations_Tables
Insurance Operations (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Insurance [Abstract] | ' | ||||||||||||||||
Composition of Insurance Entities' Aggregate Policies-in-Force | ' | ||||||||||||||||
The following table provides the percentage of concentrations with respect to the Insurance Entities’ nationwide policies-in-force as of the periods presented: | |||||||||||||||||
As of | As of | ||||||||||||||||
September 30, 2013 | December 31, 2012 | ||||||||||||||||
Percentage of Policies-In-Force: | |||||||||||||||||
In Florida | 94 | % | 96 | % | |||||||||||||
With wind coverage | 98 | % | 98 | % | |||||||||||||
With wind coverage in South Florida (1) | 27 | % | 28 | % | |||||||||||||
-1 | South Florida is comprised of Miami-Dade, Broward and Palm Beach counties. | ||||||||||||||||
Beginning and Ending Balances and Changes in DPAC, Net of DRCC | ' | ||||||||||||||||
The following table presents the beginning and ending balances and the changes in DPAC, net of DRCC, for the periods presented (in thousands): | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
DPAC, beginning of period (1) | $ | 59,033 | $ | 56,922 | $ | 54,431 | $ | 50,200 | |||||||||
Capitalized Costs | 26,382 | 26,849 | 85,315 | 82,529 | |||||||||||||
Amortization of DPAC | (27,888 | ) | (26,606 | ) | (82,219 | ) | (75,564 | ) | |||||||||
DPAC, end of period | $ | 57,527 | $ | 57,165 | $ | 57,527 | $ | 57,165 | |||||||||
DRCC, beginning of period (1) | $ | 41,792 | $ | 39,178 | $ | 37,149 | $ | 38,845 | |||||||||
Ceding Commissions Written | 21,319 | 21,082 | 69,853 | 65,857 | |||||||||||||
Earned Ceding Commissions | (22,537 | ) | (21,114 | ) | (66,428 | ) | (65,556 | ) | |||||||||
DRCC, end of period | $ | 40,574 | $ | 39,146 | $ | 40,574 | $ | 39,146 | |||||||||
DPAC (DRCC), net, beginning of period (1) | $ | 17,241 | $ | 17,744 | $ | 17,282 | $ | 11,355 | |||||||||
Capitalized Costs, net | 5,063 | 5,767 | 15,462 | 16,672 | |||||||||||||
Amortization of DPAC (DRCC), net | (5,351 | ) | (5,492 | ) | (15,791 | ) | (10,008 | ) | |||||||||
DPAC (DRCC), net, end of period | $ | 16,953 | $ | 18,019 | $ | 16,953 | $ | 18,019 | |||||||||
-1 | The beginning balances for the nine months ended September 30, 2012 have been adjusted in connection with the adoption of the FASB’s updated guidance related to deferred policy acquisition costs as discussed below. | ||||||||||||||||
Change in Liability for Unpaid Losses and LAE | ' | ||||||||||||||||
Set forth in the following table is the change in liability for unpaid losses and LAE for the periods presented (in thousands): | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Balance at beginning of period | $ | 166,260 | $ | 164,625 | $ | 193,241 | $ | 187,215 | |||||||||
Less reinsurance recoverable | (67,820 | ) | (73,169 | ) | (81,415 | ) | (88,002 | ) | |||||||||
Net balance at beginning of period | 98,440 | 91,456 | 111,826 | 99,213 | |||||||||||||
Incurred (recovered) related to: | |||||||||||||||||
Current year | 28,665 | 27,409 | 81,995 | 83,120 | |||||||||||||
Prior years | (330 | ) | 8,891 | (1,977 | ) | 8,791 | |||||||||||
Total incurred | 28,335 | 36,300 | 80,018 | 91,911 | |||||||||||||
Paid related to: | |||||||||||||||||
Current year | 21,813 | 18,808 | 39,288 | 34,143 | |||||||||||||
Prior years | 10,789 | 10,434 | 58,383 | 58,467 | |||||||||||||
Total paid | 32,602 | 29,242 | 97,671 | 92,610 | |||||||||||||
Net balance at end of period | 94,173 | 98,514 | 94,173 | 98,514 | |||||||||||||
Plus reinsurance recoverable | 63,201 | 74,160 | 63,201 | 74,160 | |||||||||||||
Balance at end of period | $ | 157,374 | $ | 172,674 | $ | 157,374 | $ | 172,674 | |||||||||
Statutory Capital and Surplus, and an Amount Representing Ten Percent of Total Liabilities for both UPCIC and APPCIC | ' | ||||||||||||||||
The following table presents the amount of statutory capital and surplus, and an amount representing ten percent of total liabilities for both UPCIC and APPCIC as of the periods presented (in thousands): | |||||||||||||||||
As of | As of | ||||||||||||||||
September 30, 2013 | December 31, 2012 | ||||||||||||||||
Ten percent of total liabilities | |||||||||||||||||
UPCIC | $ | 43,384 | $ | 39,260 | |||||||||||||
APPCIC | $ | 876 | $ | 694 | |||||||||||||
Statutory capital and surplus | |||||||||||||||||
UPCIC | $ | 152,341 | $ | 134,034 | |||||||||||||
APPCIC | $ | 13,713 | $ | 14,330 | |||||||||||||
Assets Held by Insurance Regulators | ' | ||||||||||||||||
The following table represents assets held by insurance regulators as of the periods presented (in thousands): | |||||||||||||||||
As of | As of | ||||||||||||||||
September 30, 2013 | December 31, 2012 | ||||||||||||||||
Restricted cash and cash equivalents | $ | 2,600 | $ | 33,009 | |||||||||||||
Investments | $ | 3,777 | $ | 4,009 |
LongTerm_Debt_Tables
Long-Term Debt (Tables) | 9 Months Ended | ||||
Sep. 30, 2013 | |||||
Debt Disclosure [Abstract] | ' | ||||
Principal Amount and Unamortized Discount | ' | ||||
The following table provides the principal amount and unamortized discount of the Term Loan for the period presented (in thousands): | |||||
As of September 30, 2013 | |||||
Principal amount | $ | 20,000 | |||
Less: unamortized discount | (1,762 | ) | |||
Term Loan, net of unamortized discount | $ | 18,238 | |||
ShareBased_Compensation_Tables
Share-Based Compensation (Tables) | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ||||||||||||||||||||||||
Certain Information Related to Stock Options and Restricted Stock | ' | ||||||||||||||||||||||||
The following table provides certain information related to stock options and restricted stock for the periods presented (in thousands, except per share data): | |||||||||||||||||||||||||
Three Months Ended September 30, 2013 | |||||||||||||||||||||||||
Stock Options | Restricted Stock | ||||||||||||||||||||||||
Number of | Weighted | Aggregate | Weighted | Number of | Weighted | ||||||||||||||||||||
Options | Average | Intrinsic | Average | Shares (2) | Average | ||||||||||||||||||||
Exercise | Value | Remaining | Grant Date | ||||||||||||||||||||||
Price per | Term | Fair Value | |||||||||||||||||||||||
Share (1) | per Share (1) | ||||||||||||||||||||||||
Outstanding as of June 30, 2013 | 3,240 | $ | 4.62 | 1,450 | $ | 4.56 | |||||||||||||||||||
Granted | 830 | 7.33 | 150 | 8.55 | |||||||||||||||||||||
Forfeited | (20 | ) | 7.33 | n/a | n/a | ||||||||||||||||||||
Exercised | (135 | ) | 4.7 | n/a | n/a | ||||||||||||||||||||
Vested | n/a | n/a | — | — | |||||||||||||||||||||
Outstanding as of September 30, 2013 | 3,915 | $ | 5.17 | $ | 7,572 | 3.62 | 1,600 | $ | 4.94 | ||||||||||||||||
Exercisable as of September 30, 2013 | 2,170 | $ | 4.77 | $ | 4,947 | 2.66 | |||||||||||||||||||
Nine Months Ended September 30, 2013 | |||||||||||||||||||||||||
Stock Options | Restricted Stock | ||||||||||||||||||||||||
Number of | Weighted | Aggregate | Weighted | Number of | Weighted | ||||||||||||||||||||
Options | Average | Intrinsic | Average | Shares (2) | Average | ||||||||||||||||||||
Exercise | Value | Remaining | Grant Date | ||||||||||||||||||||||
Price per | Term | Fair Value | |||||||||||||||||||||||
Share (1) | per Share (1) | ||||||||||||||||||||||||
Outstanding as of December 31, 2012 | 5,330 | $ | 4.29 | 1,152 | $ | 4.37 | |||||||||||||||||||
Granted | 1,515 | 6.05 | 1,000 | 5.43 | |||||||||||||||||||||
Forfeited | (20 | ) | 7.33 | n/a | n/a | ||||||||||||||||||||
Exercised | (2,060 | ) | 4.03 | n/a | n/a | ||||||||||||||||||||
Vested | n/a | n/a | (552 | ) | 4.64 | ||||||||||||||||||||
Expired | (850 | ) | 3.9 | n/a | n/a | ||||||||||||||||||||
Outstanding as of September 30, 2013 | 3,915 | $ | 5.17 | $ | 7,572 | 3.62 | 1,600 | $ | 4.94 | ||||||||||||||||
Exercisable as of September 30, 2013 | 2,170 | $ | 4.77 | $ | 4,947 | 2.66 | |||||||||||||||||||
-1 | Unless otherwise specified, such as in the case of the exercise of stock options, the per share prices were determined using the closing price of the Company’s Common Stock as quoted on the NYSE MKT LLC. Shares issued upon exercise of options represent original issuances in private transactions pursuant to Section 4(2) of the Securities Act of 1933, as amended or issuances under the Company’s 2009 Omnibus Incentive Plan. | ||||||||||||||||||||||||
-2 | All shares outstanding as of September 30, 2013 are expected to vest. | ||||||||||||||||||||||||
n/a—Not applicable | |||||||||||||||||||||||||
Certain Information Regarding Company's Share-Based Compensation | ' | ||||||||||||||||||||||||
The following table provides certain information in connection with the Company’s share-based compensation arrangements for the periods presented (in thousands): | |||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||
Compensation expense: | |||||||||||||||||||||||||
Stock options | $ | 153 | $ | 246 | $ | 766 | $ | 892 | |||||||||||||||||
Restricted stock | 1,558 | 621 | 3,873 | 1,667 | |||||||||||||||||||||
Total | $ | 1,711 | $ | 867 | $ | 4,639 | $ | 2,559 | |||||||||||||||||
Deferred tax benefits: | |||||||||||||||||||||||||
Stock options | $ | 59 | $ | 95 | $ | 295 | $ | 344 | |||||||||||||||||
Restricted stock | 120 | 88 | 376 | 380 | |||||||||||||||||||||
Total | $ | 179 | $ | 183 | $ | 671 | $ | 724 | |||||||||||||||||
Realized tax benefits: | |||||||||||||||||||||||||
Stock options | $ | 139 | $ | 27 | $ | 1,889 | $ | 168 | |||||||||||||||||
Restricted stock | — | — | 374 | 291 | |||||||||||||||||||||
Total | $ | 139 | $ | 27 | $ | 2,263 | $ | 459 | |||||||||||||||||
Excess tax benefits(shortfall): | |||||||||||||||||||||||||
Stock options | $ | 48 | $ | (1,693 | ) | $ | 110 | $ | (1,623 | ) | |||||||||||||||
Restricted stock | — | — | (59 | ) | (142 | ) | |||||||||||||||||||
Total | $ | 48 | $ | (1,693 | ) | $ | 51 | $ | (1,765 | ) | |||||||||||||||
Weighted average fair value per option or share: | |||||||||||||||||||||||||
Stock option grants | $ | 0.88 | $ | 0.87 | $ | 0.65 | $ | 0.87 | |||||||||||||||||
Restricted stock grants | $ | 8.55 | $ | 3.37 | $ | 5.43 | $ | 3.37 | |||||||||||||||||
Intrinsic value of options exercised | $ | 359 | $ | 70 | $ | 4,896 | $ | 437 | |||||||||||||||||
Fair value of restricted stock vested | $ | — | $ | — | $ | 2,548 | $ | 1,164 | |||||||||||||||||
Cash received for strike price and tax withholdings | $ | — | $ | 134 | $ | — | $ | 652 | |||||||||||||||||
Shares acquired through cashless exercise (1) | 99 | — | 1,782 | 147 | |||||||||||||||||||||
Value of shares acquired through cashless exercise (1) | $ | 733 | $ | — | $ | 11,028 | $ | 583 | |||||||||||||||||
-1 | All shares acquired represent shares tendered to cover the strike price for options and tax withholdings on the intrinsic value of options exercised or restricted stock vested. These shares have been cancelled by the Company. | ||||||||||||||||||||||||
Unrecognized Compensation Expense and Weighted Average Period | ' | ||||||||||||||||||||||||
The following table presents the amount of unrecognized compensation expense as of the most recent balance sheet date and the weighted average period over which those expenses will be recorded for both stock options and restricted stock (dollars in thousands): | |||||||||||||||||||||||||
As of September 30, 2013 | |||||||||||||||||||||||||
Stock | Restricted | ||||||||||||||||||||||||
Options | Stock | ||||||||||||||||||||||||
Unrecognized expense | $ | 1,022 | $ | 4,458 | |||||||||||||||||||||
Weighted average remaining years | 2.15 | 0.94 |
Stockholders_Equity_Tables
Stockholders' Equity (Tables) | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Equity [Abstract] | ' | ||||||||||||
Activity Relating to Common Shares | ' | ||||||||||||
The following table summarizes the activity relating to shares of the Company’s common stock during the nine months ended September 30, 2013 (in thousands): | |||||||||||||
Issued | Treasury | Outstanding | |||||||||||
Shares | Shares | Shares | |||||||||||
Balance, as of December 31, 2012 | 41,889 | (1,018 | ) | 40,871 | |||||||||
Conversion of preferred stock | 220 | — | 220 | ||||||||||
Shares repurchased | — | (7,258 | ) | (7,258 | ) | ||||||||
Options exercised | 2,060 | — | 2,060 | ||||||||||
Restricted stock grant | 1,000 | — | 1,000 | ||||||||||
Shares acquired through cashless exercise (1) | (1,782 | ) | (1,782 | ) | |||||||||
Shares cancelled | (1,782 | ) | 1,782 | — | |||||||||
Balance, as of September 30, 2013 | 43,387 | (8,276 | ) | 35,111 | |||||||||
-1 | All shares acquired represent shares tendered to cover the strike price for options and tax withholdings on the intrinsic value of options exercised or restricted stock vested. These shares have been cancelled by the Company. |
Related_Party_Transactions_Tab
Related Party Transactions (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Related Party Transactions [Abstract] | ' | ||||||||||||||||
Payments Made by Company to Downes and Associates | ' | ||||||||||||||||
The following table provides payments made by the Company to Downes and SPC Global RE Advisors LLC for the periods presented (in thousands): | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Downes and Associates | $ | 131 | $ | 131 | $ | 390 | $ | 391 | |||||||||
SPC Global RE Advisors LLC | $ | 38 | $ | — | $ | 38 | $ | — |
Income_Taxes_Tables
Income Taxes (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||||||
Deferred Income Tax Effects of Temporary Differences | ' | ||||||||||||||||
The tax effects of temporary differences are as follows for the periods presented (in thousands): | |||||||||||||||||
As of | As of | ||||||||||||||||
September 30, | December 31, | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
Deferred income tax assets: | |||||||||||||||||
Unearned premiums | $ | 12,108 | $ | 11,430 | |||||||||||||
Advance premium | 1,790 | 1,132 | |||||||||||||||
Unpaid losses and LAE | 2,756 | 3,449 | |||||||||||||||
Regulatory assessments | 844 | 2,447 | |||||||||||||||
Share-based compensation | 1,477 | 3,048 | |||||||||||||||
Accrued wages | 453 | 778 | |||||||||||||||
Allowance for uncollectible receivables | 207 | 205 | |||||||||||||||
Additional tax basis of securities | 45 | 573 | |||||||||||||||
Unrealized losses on trading investments | — | 2,782 | |||||||||||||||
Capital loss carryforwards | 1,204 | — | |||||||||||||||
Other comprehensive loss | 306 | — | |||||||||||||||
Total deferred income tax assets | 21,190 | 25,844 | |||||||||||||||
Deferred income tax liabilities: | |||||||||||||||||
Deferred policy acquisition costs, net | (6,540 | ) | (6,666 | ) | |||||||||||||
Prepaid expenses | (625 | ) | — | ||||||||||||||
Unrealized gains on trading investments | (269 | ) | — | ||||||||||||||
Total deferred income tax liabilities | (7,434 | ) | (6,666 | ) | |||||||||||||
Net deferred income tax asset | $ | 13,756 | $ | 19,178 | |||||||||||||
Reconciles Statutory Federal Income Tax Rate to Company' s Effective Tax Rate | ' | ||||||||||||||||
The following table reconciles the statutory federal income tax rate to the Company’s effective tax rate for the periods presented: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Statutory federal income tax rate | 35 | % | 35 | % | 35 | % | 35 | % | |||||||||
Increases (decreases) resulting from: | |||||||||||||||||
Disallowed meals & entertainment | 0.2 | % | 0.5 | % | 0.3 | % | 0.3 | % | |||||||||
Disallowed compensation | 4.1 | % | 3.5 | % | 2.4 | % | 1.5 | % | |||||||||
Fines and penalties | 0 | % | — | 0.6 | % | — | |||||||||||
True-up of prior year tax returns | -0.9 | % | -1.7 | % | -0.4 | % | -0.4 | % | |||||||||
State income tax, net of federal tax benefit (1) | 3.6 | % | 3.6 | % | 3.6 | % | 3.6 | % | |||||||||
Other, net | 0.6 | % | — | 0.3 | % | — | |||||||||||
Effective tax rate | 42.6 | % | 40.9 | % | 41.8 | % | 40 | % | |||||||||
-1 | Included in income tax is Florida income tax at a statutory rate of 5.5%. |
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
Reconciles Numerator and Denominator of Basic and Diluted Earnings Per Share Computations for Net Income | ' | ||||||||||||||||
The following table reconciles the numerator (i.e., income) and denominator (i.e., shares) of the basic and diluted earnings per share computations for the periods presented (in thousands, except per share data): | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Numerator for EPS: | |||||||||||||||||
Net income | $ | 14,407 | $ | 8,256 | $ | 43,395 | $ | 25,906 | |||||||||
Less: Preferred stock dividends | (14 | ) | (23 | ) | (24 | ) | (282 | ) | |||||||||
Income available to common stockholders | $ | 14,393 | $ | 8,233 | $ | 43,371 | $ | 25,624 | |||||||||
Denominator for EPS: | |||||||||||||||||
Weighted average common shares outstanding | 33,658 | 39,679 | 36,628 | 39,579 | |||||||||||||
Plus: Assumed conversion of stock-based compensation (1) | 1,630 | 282 | 1,291 | 390 | |||||||||||||
Assumed conversion of preferred stock | 323 | 489 | 433 | 489 | |||||||||||||
Weighted average diluted common shares outstanding | 35,611 | 40,450 | 38,352 | 40,458 | |||||||||||||
Basic earnings per common share | $ | 0.43 | $ | 0.21 | $ | 1.18 | $ | 0.65 | |||||||||
Diluted earnings per common share | $ | 0.4 | $ | 0.2 | $ | 1.13 | $ | 0.64 | |||||||||
-1 | Represents the dilutive effect of unvested restricted stock and unexercised stock options. |
Other_Comprehensive_Income_Los1
Other Comprehensive Income (Loss) (Tables) | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||||||||||
Components of Other Comprehensive Income (Loss) Pre-tax and After-Tax | ' | ||||||||||||||||||||||||
The following table provides the components of other comprehensive income (loss) on a pre-tax and after-tax basis for the periods presented (in thousands): | |||||||||||||||||||||||||
For the Three Months | For the Nine Months | ||||||||||||||||||||||||
Ended September 30, 2013 | Ended September 30, 2013 | ||||||||||||||||||||||||
Pre-tax | Tax | After-tax | Pre-tax | Tax | After-tax | ||||||||||||||||||||
Net unrealized gains (losses) on available for sale investments arising during the periods | $ | 3,507 | $ | 1,353 | $ | 2,154 | $ | (739 | ) | $ | (285 | ) | $ | (454 | ) | ||||||||||
Less: realized gains (losses) on investments | 56 | 22 | 34 | 55 | 21 | 34 | |||||||||||||||||||
Change in net unrealized gains (losses) on available for sale investments | 3,451 | 1,331 | 2,120 | (794 | ) | (306 | ) | (488 | ) | ||||||||||||||||
Other comprehensive income (loss) | $ | 3,451 | $ | 1,331 | $ | 2,120 | $ | (794 | ) | $ | (306 | ) | $ | (488 | ) | ||||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
Assets Accounted for at Fair Value on Recurring Basis | ' | ||||||||||||||||
The following tables set forth by level within the fair value hierarchy the Company’s assets that were accounted for at fair value on a recurring basis as of the periods presented (in thousands): | |||||||||||||||||
Fair Value Measurements | |||||||||||||||||
As of September 30, 2013 | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Cash and cash equivalents | $ | 137,286 | $ | — | $ | — | $ | 137,286 | |||||||||
Restricted cash and cash equivalents | 2,600 | — | — | 2,600 | |||||||||||||
Available for sale portfolio: | |||||||||||||||||
Fixed maturities: | |||||||||||||||||
US government obligations and agencies | — | 104,532 | — | 104,532 | |||||||||||||
Corporate bonds | — | 98,978 | — | 98,978 | |||||||||||||
Mortgage-backed and asset-backed securities | — | 94,994 | — | 94,994 | |||||||||||||
Equity securities: | |||||||||||||||||
Common stock | 20,057 | — | 20,057 | ||||||||||||||
Mutual funds | 50,805 | — | 50,805 | ||||||||||||||
Total available for sale portfolio investments | $ | 70,862 | $ | 298,504 | $ | — | $ | 369,366 | |||||||||
Total assets accounted for at fair value | $ | 210,748 | $ | 298,504 | $ | — | $ | 509,252 | |||||||||
Fair Value Measurements | |||||||||||||||||
As of December 31, 2012 | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Cash and cash equivalents | $ | 347,392 | $ | — | $ | — | $ | 347,392 | |||||||||
Restricted cash and cash equivalents | 33,009 | — | — | 33,009 | |||||||||||||
Trading portfolio: | |||||||||||||||||
Fixed maturities: | |||||||||||||||||
US government obligations and agencies | — | 4,009 | — | 4,009 | |||||||||||||
Equity securities: | |||||||||||||||||
Common stock: | |||||||||||||||||
Metals and mining | 26,130 | — | — | 26,130 | |||||||||||||
Energy | 10,868 | — | — | 10,868 | |||||||||||||
Other | 8,215 | — | — | 8,215 | |||||||||||||
Exchange traded and mutual funds: | |||||||||||||||||
Metals and mining | 21,989 | — | — | 21,989 | |||||||||||||
Agriculture | 10,265 | — | — | 10,265 | |||||||||||||
Energy | 5,068 | 5,068 | |||||||||||||||
Indices | 2,506 | — | — | 2,506 | |||||||||||||
Non-hedging derivative liability, net | — | (21 | ) | — | (21 | ) | |||||||||||
Other investments | 317 | — | — | 317 | |||||||||||||
Total trading portfolio investments | $ | 85,358 | $ | 3,988 | $ | — | $ | 89,346 | |||||||||
Total assets (liabilities) accounted for at fair value | $ | 465,759 | $ | 3,988 | $ | — | $ | 469,747 | |||||||||
Summarizes Carrying Value and Estimated Fair Values of Financial Instruments not Carried at Fair Value | ' | ||||||||||||||||
The following table summarizes the carrying value and estimated fair values of the Company’s financial instruments that are not carried at fair value (in thousands): | |||||||||||||||||
As of September 30, 2013 | |||||||||||||||||
Carrying value | (Level 3) | ||||||||||||||||
Estimated Fair | |||||||||||||||||
Value | |||||||||||||||||
Liabilities (debt): | |||||||||||||||||
Surplus note | $ | 19,118 | $ | 16,310 | |||||||||||||
Term loan | $ | 18,238 | $ | 18,238 | |||||||||||||
As of December 31, 2012 | |||||||||||||||||
Carrying value | (Level 3) | ||||||||||||||||
Estimated Fair | |||||||||||||||||
Value | |||||||||||||||||
Liabilities (debt): | |||||||||||||||||
Surplus note | $ | 20,221 | $ | 18,057 |
Nature_of_Operations_and_Basis2
Nature of Operations and Basis of Presentation - Additional Information (Detail) | Sep. 30, 2013 |
State | |
Accounting Policies [Abstract] | ' |
Number of states | 7 |
Significant_Accounting_Policie2
Significant Accounting Policies - Cash and Cash Equivalents (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
Cash and Cash Equivalents [Line Items] | ' | ' | ' | ' |
Cash | $3,954 | $4,560 | ' | ' |
Money Market Funds | 133,332 | 342,832 | ' | ' |
Cash and cash equivalents | 137,286 | 347,392 | 365,675 | 229,685 |
Cash and cash Equivalents, % by Institution | 100.00% | 100.00% | ' | ' |
U.S. Bank IT&C [Member] | ' | ' | ' | ' |
Cash and Cash Equivalents [Line Items] | ' | ' | ' | ' |
Cash | ' | ' | ' | ' |
Money Market Funds | ' | 40,463 | ' | ' |
Cash and cash equivalents | ' | 40,463 | ' | ' |
Cash and cash Equivalents, % by Institution | ' | 11.60% | ' | ' |
Sun Trust Bank [Member] | ' | ' | ' | ' |
Cash and Cash Equivalents [Line Items] | ' | ' | ' | ' |
Cash | 528 | 773 | ' | ' |
Money Market Funds | 3,696 | 1,055 | ' | ' |
Cash and cash equivalents | 4,224 | 1,828 | ' | ' |
Cash and cash Equivalents, % by Institution | 3.10% | 0.50% | ' | ' |
Sun Trust Bank Escrow Services [Member] | ' | ' | ' | ' |
Cash and Cash Equivalents [Line Items] | ' | ' | ' | ' |
Cash | ' | ' | ' | ' |
Money Market Funds | 93,794 | 300,843 | ' | ' |
Cash and cash equivalents | 93,794 | 300,843 | ' | ' |
Cash and cash Equivalents, % by Institution | 68.30% | 86.60% | ' | ' |
Wells Fargo Bank N.A. [Member] | ' | ' | ' | ' |
Cash and Cash Equivalents [Line Items] | ' | ' | ' | ' |
Cash | 2,701 | 1,991 | ' | ' |
Money Market Funds | ' | 3 | ' | ' |
Cash and cash equivalents | 2,701 | 1,994 | ' | ' |
Cash and cash Equivalents, % by Institution | 2.00% | 0.60% | ' | ' |
Deutsche Bank Securities, Inc. [Member] | ' | ' | ' | ' |
Cash and Cash Equivalents [Line Items] | ' | ' | ' | ' |
Cash | ' | 1,796 | ' | ' |
Money Market Funds | 21,042 | 468 | ' | ' |
Cash and cash equivalents | 21,042 | 2,264 | ' | ' |
Cash and cash Equivalents, % by Institution | 15.30% | 0.70% | ' | ' |
State Street Bank and Trust Company [Member] | ' | ' | ' | ' |
Cash and Cash Equivalents [Line Items] | ' | ' | ' | ' |
Cash | ' | ' | ' | ' |
Money Market Funds | 14,800 | ' | ' | ' |
Cash and cash equivalents | 14,800 | ' | ' | ' |
Cash and cash Equivalents, % by Institution | 10.80% | ' | ' | ' |
All Other Banking Institutions [Member] | ' | ' | ' | ' |
Cash and Cash Equivalents [Line Items] | ' | ' | ' | ' |
Cash | 725 | ' | ' | ' |
Money Market Funds | ' | ' | ' | ' |
Cash and cash equivalents | $725 | ' | ' | ' |
Cash and cash Equivalents, % by Institution | 0.50% | ' | ' | ' |
Significant_Accounting_Policie3
Significant Accounting Policies - Restricted Cash and Cash equivalents (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ' | ' |
Restricted cash and cash equivalents | $2,600 | $33,009 |
Restricted cash and cash equivalents, % by Institution | 100.00% | 100.00% |
U.S. Bank IT&C [Member] | ' | ' |
Restricted Cash and Cash Equivalents Items [Line Items] | ' | ' |
Restricted cash and cash equivalents, % by Institution | 30.80% | 2.40% |
Florida Department of Financial Services [Member] | ' | ' |
Restricted Cash and Cash Equivalents Items [Line Items] | ' | ' |
Restricted cash and cash equivalents, % by Institution | 69.20% | 97.60% |
State Deposits [Member] | ' | ' |
Restricted Cash and Cash Equivalents Items [Line Items] | ' | ' |
Restricted cash and cash equivalents | 2,600 | 33,009 |
State Deposits [Member] | U.S. Bank IT&C [Member] | ' | ' |
Restricted Cash and Cash Equivalents Items [Line Items] | ' | ' |
Restricted cash and cash equivalents | 800 | 800 |
State Deposits [Member] | Florida Department of Financial Services [Member] | ' | ' |
Restricted Cash and Cash Equivalents Items [Line Items] | ' | ' |
Restricted cash and cash equivalents | $1,800 | $32,209 |
Significant_Accounting_Policie4
Significant Accounting Policies - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Mar. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2011 | Jun. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | |
Schedule Of Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Unsecured amounts due from reinsurers exceeding a fixed percentage of stockholders equity | ' | 3.00% | ' | ' | ' | ' | ' |
Deferred policy acquisition costs | ' | $16,953,000 | ' | $17,241,000 | $17,282,000 | $18,019,000 | $17,744,000 |
Deferred policy acquisition costs, net, difference percentage | ' | ' | 13.00% | ' | ' | ' | ' |
Deferred policy acquisition costs, pre-tax charge against earnings | 1,600,000 | ' | ' | ' | ' | ' | ' |
Maximum amortization period for capitalized cost | ' | '12 months | ' | ' | ' | ' | ' |
Acquisition-Related Costs [Member] | Minimum [Member] | ' | ' | ' | ' | ' | ' | ' |
Schedule Of Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Deferred policy acquisition costs | ' | ' | 11,400,000 | ' | ' | ' | ' |
Acquisition-Related Costs [Member] | Maximum [Member] | ' | ' | ' | ' | ' | ' | ' |
Schedule Of Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Deferred policy acquisition costs | ' | ' | 13,000,000 | ' | ' | ' | ' |
Significant_Accounting_Policie5
Significant Accounting Policies - Unsecured Net Amounts Due from Reinsurers Whose Aggregate Balance Exceeded 3% of Stockholders' Equity (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Ceded Credit Risk [Line Items] | ' | ' |
Reinsurance unsecured amounts due from reinsurers total | $235,987 | $268,458 |
Everest Reinsurance Company [Member] | AM Best, A+ Rating [Member] | Standard & Poor's, A+ Rating [Member] | Moody's, A1 Rating [Member] | ' | ' |
Ceded Credit Risk [Line Items] | ' | ' |
Reinsurance unsecured amounts due from reinsurers total | 84,387 | 44,392 |
Florida Hurricane Catastrophe Fund [Member] | ' | ' |
Ceded Credit Risk [Line Items] | ' | ' |
Reinsurance unsecured amounts due from reinsurers total | ' | 31,970 |
Odyssey Reinsurance Company [Member] | AM Best, A Rating [Member] | Standard & Poor's, A- Rating [Member] | Moody's, A3 Rating [Member] | ' | ' |
Ceded Credit Risk [Line Items] | ' | ' |
Reinsurance unsecured amounts due from reinsurers total | $151,600 | $192,096 |
Investments_Investment_Holding
Investments - Investment Holdings by Type of Instrument (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Investment Holdings [Line Items] | ' | ' |
Investment Owned, at Cost or Amortized Cost | $510,047 | $476,972 |
Investment Owned, at Fair Value | 509,252 | 469,747 |
Investment Owned, at Carrying Value | 509,252 | 469,747 |
Categories of Investments, Marketable Securities, Trading Securities [Member] | ' | ' |
Investment Holdings [Line Items] | ' | ' |
Investment Owned, at Cost or Amortized Cost | ' | 96,571 |
Investment Owned, at Fair Value | ' | 89,346 |
Investment Owned, at Carrying Value | ' | 89,346 |
Categories of Investments, Marketable Securities, Available-for-Sale Securities [Member] | ' | ' |
Investment Holdings [Line Items] | ' | ' |
Investment Owned, at Cost or Amortized Cost | 370,161 | ' |
Investment Owned, at Fair Value | 369,366 | ' |
Investment Owned, at Carrying Value | 369,366 | ' |
Cash and Cash Equivalents [Member] | ' | ' |
Investment Holdings [Line Items] | ' | ' |
Investment Owned, at Cost or Amortized Cost | 137,286 | 347,392 |
Investment Owned, at Fair Value | 137,286 | 347,392 |
Investment Owned, at Carrying Value | 137,286 | 347,392 |
Restricted Cash and Cash Equivalents [Member] | ' | ' |
Investment Holdings [Line Items] | ' | ' |
Investment Owned, at Cost or Amortized Cost | 2,600 | 33,009 |
Investment Owned, at Fair Value | 2,600 | 33,009 |
Investment Owned, at Carrying Value | 2,600 | 33,009 |
U.S. Government Obligations and Agencies [Member] | Categories of Investments, Marketable Securities, Trading Securities [Member] | ' | ' |
Investment Holdings [Line Items] | ' | ' |
Investment Owned, at Cost or Amortized Cost | ' | 3,192 |
Investment Owned, at Fair Value | ' | 4,009 |
Investment Owned, at Carrying Value | ' | 4,009 |
U.S. Government Obligations and Agencies [Member] | Categories of Investments, Marketable Securities, Available-for-Sale Securities [Member] | ' | ' |
Investment Holdings [Line Items] | ' | ' |
Investment Owned, at Cost or Amortized Cost | 105,265 | ' |
Investment Owned, at Fair Value | 104,532 | ' |
Investment Owned, at Carrying Value | 104,532 | ' |
Equity Securities, Common Stock, Metals and Mining [Member] | Categories of Investments, Marketable Securities, Trading Securities [Member] | ' | ' |
Investment Holdings [Line Items] | ' | ' |
Investment Owned, at Cost or Amortized Cost | ' | 31,113 |
Investment Owned, at Fair Value | ' | 26,130 |
Investment Owned, at Carrying Value | ' | 26,130 |
Equity Securities, Common Stock, Energy [Member] | Categories of Investments, Marketable Securities, Trading Securities [Member] | ' | ' |
Investment Holdings [Line Items] | ' | ' |
Investment Owned, at Cost or Amortized Cost | ' | 12,053 |
Investment Owned, at Fair Value | ' | 10,868 |
Investment Owned, at Carrying Value | ' | 10,868 |
Equity Securities, Common Stock, Other [Member] | Categories of Investments, Marketable Securities, Trading Securities [Member] | ' | ' |
Investment Holdings [Line Items] | ' | ' |
Investment Owned, at Cost or Amortized Cost | ' | 8,416 |
Investment Owned, at Fair Value | ' | 8,215 |
Investment Owned, at Carrying Value | ' | 8,215 |
Equity Securities, Exchange-Traded and Mutual Funds, Metals and Mining [Member] | Categories of Investments, Marketable Securities, Trading Securities [Member] | ' | ' |
Investment Holdings [Line Items] | ' | ' |
Investment Owned, at Cost or Amortized Cost | ' | 22,687 |
Investment Owned, at Fair Value | ' | 21,989 |
Investment Owned, at Carrying Value | ' | 21,989 |
Equity Securities, Exchange-Traded and Mutual Funds, Agriculture [Member] | Categories of Investments, Marketable Securities, Trading Securities [Member] | ' | ' |
Investment Holdings [Line Items] | ' | ' |
Investment Owned, at Cost or Amortized Cost | ' | 10,705 |
Investment Owned, at Fair Value | ' | 10,265 |
Investment Owned, at Carrying Value | ' | 10,265 |
Equity Securities, Exchange-Traded and Mutual Funds, Energy [Member] | Categories of Investments, Marketable Securities, Trading Securities [Member] | ' | ' |
Investment Holdings [Line Items] | ' | ' |
Investment Owned, at Cost or Amortized Cost | ' | 4,992 |
Investment Owned, at Fair Value | ' | 5,068 |
Investment Owned, at Carrying Value | ' | 5,068 |
Equity Securities, Exchange-Traded and Mutual Funds, Indices [Member] | Categories of Investments, Marketable Securities, Trading Securities [Member] | ' | ' |
Investment Holdings [Line Items] | ' | ' |
Investment Owned, at Cost or Amortized Cost | ' | 2,827 |
Investment Owned, at Fair Value | ' | 2,506 |
Investment Owned, at Carrying Value | ' | 2,506 |
Non-Hedging Derivative Asset (Liability), Net [Member] | Categories of Investments, Marketable Securities, Trading Securities [Member] | ' | ' |
Investment Holdings [Line Items] | ' | ' |
Investment Owned, at Cost or Amortized Cost | ' | 69 |
Investment Owned, at Fair Value | ' | -21 |
Investment Owned, at Carrying Value | ' | -21 |
Other Investments [Member] | Categories of Investments, Marketable Securities, Trading Securities [Member] | ' | ' |
Investment Holdings [Line Items] | ' | ' |
Investment Owned, at Cost or Amortized Cost | ' | 517 |
Investment Owned, at Fair Value | ' | 317 |
Investment Owned, at Carrying Value | ' | 317 |
Corporate Bonds [Member] | Categories of Investments, Marketable Securities, Available-for-Sale Securities [Member] | ' | ' |
Investment Holdings [Line Items] | ' | ' |
Investment Owned, at Cost or Amortized Cost | 99,659 | ' |
Investment Owned, at Fair Value | 98,978 | ' |
Investment Owned, at Carrying Value | 98,978 | ' |
Mortgage-Backed and Asset-Backed Securities [Member] | Categories of Investments, Marketable Securities, Available-for-Sale Securities [Member] | ' | ' |
Investment Holdings [Line Items] | ' | ' |
Investment Owned, at Cost or Amortized Cost | 95,220 | ' |
Investment Owned, at Fair Value | 94,994 | ' |
Investment Owned, at Carrying Value | 94,994 | ' |
Common Stock [Member] | Categories of Investments, Marketable Securities, Available-for-Sale Securities [Member] | ' | ' |
Investment Holdings [Line Items] | ' | ' |
Investment Owned, at Cost or Amortized Cost | 19,126 | ' |
Investment Owned, at Fair Value | 20,057 | ' |
Investment Owned, at Carrying Value | 20,057 | ' |
Mutual Funds [Member] | Categories of Investments, Marketable Securities, Available-for-Sale Securities [Member] | ' | ' |
Investment Holdings [Line Items] | ' | ' |
Investment Owned, at Cost or Amortized Cost | 50,891 | ' |
Investment Owned, at Fair Value | 50,805 | ' |
Investment Owned, at Carrying Value | $50,805 | ' |
Investments_Investment_Income_
Investments - Investment Income (Expense) Comprised Primarily of Interest and Dividends (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Net Investment Income [Line Items] | ' | ' | ' | ' |
Total investment income | $937 | $380 | $1,515 | $849 |
Less investment expenses | -555 | -165 | -985 | -686 |
Net investment (expense) income | 382 | 215 | 530 | 163 |
Cash and Cash Equivalents [Member] | ' | ' | ' | ' |
Net Investment Income [Line Items] | ' | ' | ' | ' |
Total investment income | 135 | 243 | 377 | 483 |
Fixed Maturities [Member] | ' | ' | ' | ' |
Net Investment Income [Line Items] | ' | ' | ' | ' |
Total investment income | 439 | 42 | 409 | 53 |
Equity Securities [Member] | ' | ' | ' | ' |
Net Investment Income [Line Items] | ' | ' | ' | ' |
Total investment income | $363 | $95 | $729 | $313 |
Investments_Effect_of_Trading_
Investments - Effect of Trading Activities by Type of Instrument and by Line Item in Condensed Consolidated Statements of Income (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Net Investment Income [Line Items] | ' | ' | ' | ' |
Total realized gains (losses) on trading portfolio | ' | ($3,142) | ($16,037) | ($12,296) |
Total change in unrealized gains (losses) on trading portfolio | ' | 8,091 | 7,874 | 11,490 |
Net gains (losses) recognized on trading portfolio | ' | 4,949 | -8,163 | -806 |
Fixed Maturities [Member] | ' | ' | ' | ' |
Net Investment Income [Line Items] | ' | ' | ' | ' |
Total realized gains (losses) on trading portfolio | ' | ' | ' | ' |
Total change in unrealized gains (losses) on trading portfolio | ' | 55 | 13 | 192 |
Equity Securities [Member] | ' | ' | ' | ' |
Net Investment Income [Line Items] | ' | ' | ' | ' |
Total realized gains (losses) on trading portfolio | ' | -3,299 | -15,969 | -12,728 |
Total change in unrealized gains (losses) on trading portfolio | ' | 8,119 | 7,758 | 11,291 |
Derivatives (Non-Hedging Instruments) [Member] | ' | ' | ' | ' |
Net Investment Income [Line Items] | ' | ' | ' | ' |
Total realized gains (losses) on trading portfolio | ' | 157 | -68 | 432 |
Total change in unrealized gains (losses) on trading portfolio | ' | -55 | 89 | 62 |
Other Investments [Member] | ' | ' | ' | ' |
Net Investment Income [Line Items] | ' | ' | ' | ' |
Total change in unrealized gains (losses) on trading portfolio | ' | ($28) | $14 | ($55) |
Investments_Cost_or_Amortized_
Investments - Cost or Amortized Cost and Fair Value of Securities Available for Sale (Detail) (USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 |
Schedule of Available-for-sale Securities [Line Items] | ' |
Cost or Amortized Cost | $370,161 |
Gross Unrealized Gains | 2,590 |
Gross Unrealized Losses | -3,385 |
Fair Value | 369,366 |
US Government and Agency Obligations [Member] | Fixed Maturities [Member] | ' |
Schedule of Available-for-sale Securities [Line Items] | ' |
Cost or Amortized Cost | 105,265 |
Gross Unrealized Gains | 2 |
Gross Unrealized Losses | -735 |
Fair Value | 104,532 |
Corporate Bonds [Member] | Fixed Maturities [Member] | ' |
Schedule of Available-for-sale Securities [Line Items] | ' |
Cost or Amortized Cost | 99,659 |
Gross Unrealized Gains | 263 |
Gross Unrealized Losses | -944 |
Fair Value | 98,978 |
Mortgage-Backed and Asset-Backed Securities [Member] | Fixed Maturities [Member] | ' |
Schedule of Available-for-sale Securities [Line Items] | ' |
Cost or Amortized Cost | 95,220 |
Gross Unrealized Gains | 125 |
Gross Unrealized Losses | -351 |
Fair Value | 94,994 |
Common Stock [Member] | Equity Securities [Member] | ' |
Schedule of Available-for-sale Securities [Line Items] | ' |
Cost or Amortized Cost | 19,126 |
Gross Unrealized Gains | 1,214 |
Gross Unrealized Losses | -283 |
Fair Value | 20,057 |
Mutual Funds [Member] | Equity Securities [Member] | ' |
Schedule of Available-for-sale Securities [Line Items] | ' |
Cost or Amortized Cost | 50,891 |
Gross Unrealized Gains | 986 |
Gross Unrealized Losses | -1,072 |
Fair Value | $50,805 |
Investments_Summarized_Fair_Va
Investments - Summarized Fair Value and Gross Unrealized Losses on Securities Available for Sale (Detail) (USD $) | Sep. 30, 2013 |
In Thousands, unless otherwise specified | Security |
Schedule of Available-for-sale Securities [Line Items] | ' |
Less than 12 months, Number of issues | 119 |
Less than 12 months, Fair value | $274,525 |
Less than 12 months, Unrealized losses | -3,385 |
12 months or longer, Number of issues | ' |
12 months or longer, Fair value | ' |
12 months or longer, Unrealized losses | ' |
US Government and Agency Obligations [Member] | Fixed Maturities [Member] | ' |
Schedule of Available-for-sale Securities [Line Items] | ' |
Less than 12 months, Number of issues | 7 |
Less than 12 months, Fair value | 92,376 |
Less than 12 months, Unrealized losses | -735 |
12 months or longer, Number of issues | ' |
12 months or longer, Fair value | ' |
12 months or longer, Unrealized losses | ' |
Corporate Bonds [Member] | Fixed Maturities [Member] | ' |
Schedule of Available-for-sale Securities [Line Items] | ' |
Less than 12 months, Number of issues | 68 |
Less than 12 months, Fair value | 81,640 |
Less than 12 months, Unrealized losses | -944 |
12 months or longer, Number of issues | ' |
12 months or longer, Fair value | ' |
12 months or longer, Unrealized losses | ' |
Mortgage-Backed and Asset-Backed Securities [Member] | Fixed Maturities [Member] | ' |
Schedule of Available-for-sale Securities [Line Items] | ' |
Less than 12 months, Number of issues | 17 |
Less than 12 months, Fair value | 73,630 |
Less than 12 months, Unrealized losses | -351 |
12 months or longer, Number of issues | ' |
12 months or longer, Fair value | ' |
12 months or longer, Unrealized losses | ' |
Common Stock [Member] | Equity Securities [Member] | ' |
Schedule of Available-for-sale Securities [Line Items] | ' |
Less than 12 months, Number of issues | 22 |
Less than 12 months, Fair value | 6,449 |
Less than 12 months, Unrealized losses | -284 |
12 months or longer, Number of issues | ' |
12 months or longer, Fair value | ' |
12 months or longer, Unrealized losses | ' |
Mutual Funds [Member] | Equity Securities [Member] | ' |
Schedule of Available-for-sale Securities [Line Items] | ' |
Less than 12 months, Number of issues | 5 |
Less than 12 months, Fair value | 20,430 |
Less than 12 months, Unrealized losses | -1,071 |
12 months or longer, Number of issues | ' |
12 months or longer, Fair value | ' |
12 months or longer, Unrealized losses | ' |
Investments_Additional_Informa
Investments - Additional Information (Detail) | Mar. 01, 2013 |
Positions | |
Investments Debt And Equity Securities [Abstract] | ' |
Unrealized losses | 0 |
Investments_Amortized_Cost_and
Investments - Amortized Cost and Fair Value of Fixed Maturities Available for Sale by Contractual Maturity (Detail) (USD $) | Sep. 30, 2013 |
In Thousands, unless otherwise specified | |
Schedule of Available-for-sale Securities [Line Items] | ' |
Fixed Maturities Securities Available for Sale, Due in one year or less, Amortized cost | $5,807 |
Fixed Maturities Securities Available for Sale, Due after one year through five years, Amortized cost | 193,942 |
Fixed Maturities Securities Available for Sale, Due after five years through ten years, Amortized cost | 5,175 |
Fixed Maturities Securities Available for Sale, Due after ten years, Amortized cost | ' |
Fixed Maturities Securities Available for Sale, Amortized cost, Total | 300,144 |
Fixed Maturities Securities Available for Sale, Due in one year or less, Fair Value | 5,804 |
Fixed Maturities Securities Available for Sale, Due after one year through five years, Fair Value | 192,804 |
Fixed Maturities Securities Available for Sale, Due after five years through ten years, Fair Value | 4,902 |
Fixed Maturities Securities Available for Sale, Due after ten years, Fair Value | ' |
Fixed Maturities Securities Available for Sale, Fair Value, Total | 298,504 |
Mortgage-Backed and Asset-Backed Securities [Member] | ' |
Schedule of Available-for-sale Securities [Line Items] | ' |
Fixed Maturities Securities Available for Sale, Mortgage-backed Securities, Amortized cost | 95,220 |
Fixed Maturities Securities Available for Sale, Mortgage-backed Securities, Fair Value | $94,994 |
Investments_Summary_of_Securit
Investments - Summary of Securities Available for Sale (Detail) (USD $) | 3 Months Ended | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2013 |
Investments Debt And Equity Securities [Abstract] | ' | ' |
Sales proceeds (fair value) | $376 | $390 |
Gross realized gains | 56 | 56 |
Gross realized losses | ' | -1 |
Other than temporary losses | ' | ' |
Reinsurance_Additional_Informa
Reinsurance - Additional Information (Detail) (USD $) | 6 Months Ended | 9 Months Ended |
In Billions, unless otherwise specified | Jun. 30, 2012 | Sep. 30, 2013 |
Reinsurance Disclosures [Abstract] | ' | ' |
In-force policyholder coverage for windstorm exposures | ' | $122.80 |
Percentage of premium ceded | 50.00% | 45.00% |
Percentage reduction of premium ceded | ' | 5.00% |
Reinsurance_Reinsurance_Arrang
Reinsurance - Reinsurance Arrangements (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Insurance [Abstract] | ' | ' | ' | ' |
Direct premiums written | $186,079 | $192,986 | $610,164 | $605,557 |
Ceded premiums written | -124,961 | -132,776 | -400,175 | -398,643 |
Net premiums written | 61,118 | 60,210 | 209,989 | 206,914 |
Direct Premiums Earned | 199,323 | 191,225 | 590,792 | 556,685 |
Ceded Premiums Earned | -130,396 | -131,713 | -389,590 | -392,839 |
Premiums earned, net | 68,927 | 59,512 | 201,202 | 163,846 |
Direct Loss and Loss Adjustment Expenses | 53,600 | 68,286 | 154,547 | 177,425 |
Ceded Loss and Loss Adjustment Expenses | -25,265 | -31,985 | -74,529 | -85,513 |
Net Loss and Loss Adjustment Expenses | $28,335 | $36,301 | $80,018 | $91,912 |
Reinsurance_Prepaid_Reinsuranc
Reinsurance - Prepaid Reinsurance Premiums and Reinsurance Recoverable and Receivable (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Reinsurance Disclosures [Abstract] | ' | ' |
Prepaid reinsurance premiums | $250,506 | $239,921 |
Reinsurance recoverable on unpaid losses and LAE | 63,202 | 81,415 |
Reinsurance recoverable on paid losses | 11,698 | 7,776 |
Reinsurance receivable, net | 24,268 | 24,334 |
Reinsurance recoverable and receivable | $99,168 | $113,525 |
Insurance_Operations_Additiona
Insurance Operations - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | 3 Months Ended | 9 Months Ended | ||||||
Mar. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2011 | Oct. 04, 2013 | Oct. 03, 2013 | Mar. 31, 2012 | Mar. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | |
Subsequent Event [Member] | Subsequent Event [Member] | Previous Accounting Guidance [Member] | Adjustments for New Accounting Pronouncement [Member] | American Platinum Property and Casualty Insurance Company [Member] | Universal Property and Casualty Insurance Company [Member] | UPCIC and APPCIC [Member] | UPCIC and APPCIC [Member] | ||||
Extraordinary Dividend [Member] | State | State | |||||||||
Florida Office of Insurance Regulation [Member] | |||||||||||
Statutory Accounting Practices [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of states in which home owners insurance operates | ' | ' | ' | ' | ' | ' | ' | 1 | 7 | ' | ' |
Deferred policy acquisition costs, net, difference percentage | ' | ' | 13.00% | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred policy acquisition costs, pre-tax charge against earnings | $1,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Capitalized costs amortization period | ' | '12 months | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred policy acquisition costs, net | ' | ' | ' | ' | ' | 9,000,000 | 5,600,000 | ' | ' | ' | ' |
Maximum dividend without prior approval is limited, Percent of statutory unassigned surplus | ' | 10.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum dividend paid by UPCIC and APPCIC | ' | 'The maximum dividend that may be paid by UPCIC and APPCIC to their immediate parent company, Universal Insurance Holding Company of Florida ("UIHCF"), without prior approval is limited to the lesser of statutory net income from operations of the preceding calendar year or 10.0% of statutory unassigned surplus as of the preceding year end. | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Dividend paid to UIHCF | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 |
Minimum capitalization rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10.00% |
Capitalization maintained by the company | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,000,000 | 5,000,000 |
Minimum capital required | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'Greater of ten percent of the insurer's total liabilities or $5.0 million | 'Greater of ten percent of the insurer's total liabilities or $5.0 million |
Administrative Fine | ' | ' | ' | $1,300,000 | $1,300,000 | ' | ' | ' | ' | ' | ' |
Insurance_Operations_Compositi
Insurance Operations - Composition of Insurance Entities' Aggregate Policies-In-Force (Detail) | Sep. 30, 2013 | Dec. 31, 2012 |
In Florida [Member] | ' | ' |
Statutory Accounting Practices [Line Items] | ' | ' |
Percentage of Policies-In-Force | 94.00% | 96.00% |
With Wind Coverage [Member] | ' | ' |
Statutory Accounting Practices [Line Items] | ' | ' |
Percentage of Policies-In-Force | 98.00% | 98.00% |
With Wind Coverage in South Florida [Member] | ' | ' |
Statutory Accounting Practices [Line Items] | ' | ' |
Percentage of Policies-In-Force | 27.00% | 28.00% |
Insurance_Operations_Beginning
Insurance Operations - Beginning and Ending Balances and Changes in DPAC, Net of DRCC (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Insurance [Abstract] | ' | ' | ' | ' |
DPAC, beginning of period | $59,033 | $56,922 | $54,431 | ' |
DPAC, beginning of period, Adjusted | ' | ' | ' | 50,200 |
Capitalized Costs | 26,382 | 26,849 | 85,315 | 82,529 |
Amortization of DPAC | -27,888 | -26,606 | -82,219 | -75,564 |
DPAC, end of period | 57,527 | 57,165 | 57,527 | 57,165 |
DRCC, beginning of period | 41,792 | 39,178 | 37,149 | ' |
DRCC, beginning of period, Adjusted | ' | ' | ' | 38,845 |
Ceding Commissions Written | 21,319 | 21,082 | 69,853 | 65,857 |
Earned Ceding Commissions | -22,537 | -21,114 | -66,428 | -65,556 |
DRCC, end of period | 40,574 | 39,146 | 40,574 | 39,146 |
DPAC (DRCC), net, beginning of period | 17,241 | 17,744 | 17,282 | ' |
DPAC (DRCC), net, beginning of period, Adjusted | ' | ' | ' | 11,355 |
Capitalized Costs, net | 5,063 | 5,767 | 15,462 | 16,672 |
Amortization of DPAC (DRCC), net | -5,351 | -5,492 | -15,791 | -10,008 |
DPAC (DRCC), net, end of period | $16,953 | $18,019 | $16,953 | $18,019 |
Insurance_Operations_Change_in
Insurance Operations - Change in Liability for Unpaid Losses and LAE (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Insurance [Abstract] | ' | ' | ' | ' |
Balance at beginning of period | $166,260 | $164,625 | $193,241 | $187,215 |
Less reinsurance recoverable | -67,820 | -73,169 | -81,415 | -88,002 |
Net balance at beginning of period | 98,440 | 91,456 | 111,826 | 99,213 |
Incurred (recovered) related to current year | 28,665 | 27,409 | 81,995 | 83,120 |
Incurred (recovered) related to prior year | -330 | 8,891 | -1,977 | 8,791 |
Total incurred | 28,335 | 36,300 | 80,018 | 91,911 |
Paid related to Current year | 21,813 | 18,808 | 39,288 | 34,143 |
Paid related to Prior years | 10,789 | 10,434 | 58,383 | 58,467 |
Total paid | 32,602 | 29,242 | 97,671 | 92,610 |
Net balance at end of period | 94,173 | 98,514 | 94,173 | 98,514 |
Plus reinsurance recoverable | 63,201 | 74,160 | 63,201 | 74,160 |
Balance at end of period | $157,374 | $172,674 | $157,374 | $172,674 |
Insurance_Operations_Statutory
Insurance Operations - Statutory Capital and Surplus, and an Amount Representing Ten Percent of Total Liabilities for both UPCIC and APPCIC (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Universal Property and Casualty Insurance Company [Member] | ' | ' |
Statutory Accounting Practices [Line Items] | ' | ' |
Ten percent of total liabilities | $43,384 | $39,260 |
Statutory capital and surplus | 152,341 | 134,034 |
American Platinum Property and Casualty Insurance Company [Member] | ' | ' |
Statutory Accounting Practices [Line Items] | ' | ' |
Ten percent of total liabilities | 876 | 694 |
Statutory capital and surplus | $13,713 | $14,330 |
Insurance_Operations_Assets_He
Insurance Operations - Assets Held by Insurance Regulators (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Restricted Cash and Cash Equivalents [Member] | ' | ' |
Statutory Accounting Practices [Line Items] | ' | ' |
Assets held by insurance regulators | $2,600 | $33,009 |
Investments [Member] | ' | ' |
Statutory Accounting Practices [Line Items] | ' | ' |
Assets held by insurance regulators | $3,777 | $4,009 |
LongTerm_Debt_Additional_Infor
Long-Term Debt - Additional Information (Detail) (USD $) | 9 Months Ended | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2013 | Mar. 31, 2013 | Mar. 29, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | 23-May-13 | |
Revolving Line of Credit [Member] | Revolving Line of Credit [Member] | Surplus Note [Member] | Surplus Note [Member] | Term Loan [Member] | Term Loan [Member] | Term Loan [Member] | ||
Deutsche Bank [Member] | Deutsche Bank [Member] | Installment | ||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term debt surplus | ' | ' | ' | $19,118,000 | $20,221,000 | ' | ' | ' |
Long-term debt | ' | ' | ' | ' | ' | 18,238,000 | 18,238,000 | ' |
Unsecured line of credit, maximum borrowing capacity | ' | ' | 10,000,000 | ' | ' | ' | ' | ' |
DB loan, maturity date | ' | 27-Mar-15 | ' | ' | ' | ' | ' | ' |
DB loan, Interest rate | ' | 'LIBOR plus a margin of 5.50% or Deutsche Bank's prime rate plus a margin of 3.50% | ' | ' | ' | ' | ' | ' |
Basis spread on LIBOR rate | ' | 5.50% | ' | ' | ' | ' | ' | ' |
Basis spread on Prime rate | ' | 3.50% | ' | ' | ' | ' | ' | ' |
Unsecured line of credit, amount drawn | ' | 0 | ' | ' | ' | ' | ' | ' |
Unsecured term loan agreement | ' | ' | ' | ' | ' | 20,000,000 | 20,000,000 | 20,000,000 |
Term loan maturity date | ' | ' | ' | ' | ' | ' | 23-May-16 | ' |
Stated interest rate on Term Loan | ' | ' | ' | ' | ' | 0.50% | 0.50% | ' |
Number of installments | ' | ' | ' | ' | ' | ' | 3 | ' |
Principal amount in year one | ' | ' | ' | ' | ' | 6,000,000 | 6,000,000 | ' |
Principal amount in year two | ' | ' | ' | ' | ' | 7,000,000 | 7,000,000 | ' |
Principal amount in year three | ' | ' | ' | ' | ' | 7,000,000 | 7,000,000 | ' |
Term Loan is amortized | ' | ' | ' | ' | ' | ' | '3 years | ' |
Effective interest rate term loan | ' | ' | ' | ' | ' | 5.99% | 5.99% | ' |
Amortization of discount | $349,000 | ' | ' | ' | ' | $248,000 | $349,000 | ' |
LongTerm_Debt_Principal_Amount
Long-Term Debt - Principal Amount and Unamortized Discount (Detail) (Term Loan [Member], USD $) | Sep. 30, 2013 | 23-May-13 |
In Thousands, unless otherwise specified | ||
Term Loan [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Principal amount | $20,000 | $20,000 |
Less: unamortized discount | -1,762 | ' |
Term Loan, net of unamortized discount | $18,238 | ' |
ShareBased_Compensation_Certai
Share-Based Compensation - Certain Information Related to Stock Options and Restricted Stock (Detail) (USD $) | 3 Months Ended | 9 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2013 |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ' |
Stock Options Number of Options beginning balance | 3,240 | 5,330 |
Stock Options Number of Options Granted | 830 | 1,515 |
Stock Options Number of Shares Forfeited | -20 | -20 |
Stock Options Number of Options Exercised | -135 | -2,060 |
Stock Options Number of Options Expired | ' | -850 |
Stock Options Number of Options ending balance | 3,915 | 3,915 |
Stock Options Number of Options Exercisable | 2,170 | 2,170 |
Stock Options Weighted Average Exercise Price per Share Outstanding beginning balance | $4.62 | $4.29 |
Stock Options Weighted Average Exercise Price per Share Granted | $7.33 | $6.05 |
Stock Options Weighted Average Exercise Price per Share Forfeited | $7.33 | $7.33 |
Stock Options Weighted Average Exercise Price per Share Exercised | $4.70 | $4.03 |
Stock Options Weighted Average Exercise Price per Share Expired | ' | $3.90 |
Stock Options Weighted Average Exercise Price per Share Outstanding ending balance | $5.17 | $5.17 |
Stock Options Weighted Average Exercise Price per Share Exercisable | $4.77 | $4.77 |
Stock Options Aggregate Intrinsic Value ending balance | $7,572 | $7,572 |
Stock Options Aggregate Intrinsic Value Exercisable | $4,947 | $4,947 |
Stock Options Weighted Average Remaining Term | '3 years 7 months 13 days | '3 years 7 months 13 days |
Exercisable Stock Options Weighted Average Remaining Term | '2 years 7 months 28 days | '2 years 7 months 28 days |
Restricted Stock Number of Shares beginning balance | 1,450 | 1,152 |
Restricted Stock Number of Shares Granted | 150 | 1,000 |
Restricted Stock Number of Shares Vested | ' | -552 |
Restricted Stock Number of Shares ending balance | 1,600 | 1,600 |
Restricted Stock Weighted Average Grant Date Fair Value per Share beginning balance | $4.56 | $4.37 |
Restricted Stock Weighted Average Grant Date Fair Value per Share Granted | $8.55 | $5.43 |
Restricted Stock Weighted Average Grant Date Fair Value per Share Vested | ' | $4.64 |
Restricted Stock Weighted Average Grant Date Fair Value per Share ending balance | $4.94 | $4.94 |
ShareBased_Compensation_Certai1
Share-Based Compensation - Certain Information Regarding Company's Share-Based Compensation (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Compensation expense, Total | $1,711 | $867 | $4,639 | $2,559 |
Deferred tax benefits, Total | 179 | 183 | 671 | 724 |
Realized tax benefits, Total | 139 | 27 | 2,263 | 459 |
Excess tax benefits (shortfall) | 48 | -1,693 | 52 | -1,765 |
Weighted average fair value per option or share, Restricted stock grants | $8.55 | ' | $5.43 | ' |
Intrinsic value of options exercised | 359 | 70 | 4,896 | 437 |
Cash received for strike price and tax withholdings | ' | 134 | ' | 652 |
Shares acquired through cashless exercise | 99 | ' | 1,782 | 147 |
Value of shares acquired through cashless exercise | 733 | ' | 11,028 | 583 |
Stock Option [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Compensation expense, Stock options | 153 | 246 | 766 | 892 |
Deferred tax benefits, Total | 59 | 95 | 295 | 344 |
Realized tax benefits, Total | 139 | 27 | 1,889 | 168 |
Excess tax benefits (shortfall) | 48 | -1,693 | 110 | -1,623 |
Weighted average fair value per option or share, Stock option grants | $0.88 | $0.87 | $0.65 | $0.87 |
Restricted Stock [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Compensation expense, Restricted Stock | 1,558 | 621 | 3,873 | 1,667 |
Deferred tax benefits, Total | 120 | 88 | 376 | 380 |
Realized tax benefits, Total | ' | ' | 374 | 291 |
Excess tax benefits (shortfall) | ' | ' | -59 | -142 |
Weighted average fair value per option or share, Restricted stock grants | $8.55 | $3.37 | $5.43 | $3.37 |
Fair value of restricted stock vested | ' | ' | $2,548 | $1,164 |
ShareBased_Compensation_Unreco
Share-Based Compensation - Unrecognized Compensation Expense and Weighted Average Period (Detail) (USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 |
Stock Option [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Unrecognized expense | $1,022 |
Weighted average remaining years | '2 years 1 month 24 days |
Restricted Stock [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Unrecognized expense | $4,458 |
Weighted average remaining years | '11 months 9 days |
ShareBased_Compensation_Additi
Share-Based Compensation - Additional Information (Detail) (USD $) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 1 Months Ended | 1 Months Ended | |||||||||||||
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Jul. 08, 2013 | Jun. 30, 2013 | Mar. 12, 2013 | Dec. 31, 2012 | Apr. 30, 2013 | Jul. 31, 2013 | Mar. 31, 2013 | Jul. 31, 2013 | Apr. 30, 2013 | Apr. 30, 2013 | Apr. 30, 2013 | Aug. 31, 2013 | Aug. 08, 2013 | Aug. 08, 2013 | Aug. 31, 2013 |
Restricted Stock [Member] | Vice President and Chief Operating Officer [Member] | Vice President and Chief Operating Officer [Member] | Stock Option [Member] | Chief Executive Officer [Member] | Chief Operating Officer [Member] | Chief Administrative Officer [Member] | Chief Financial Officer [Member] | Chief Financial Officer [Member] | Chief Financial Officer [Member] | Chief Financial Officer [Member] | ||||||||
Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | October One Two Thousand Fourteen [Member] | October One Two Thousand Fifteen [Member] | Restricted Stock [Member] | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Option Exercise Price | ' | ' | ' | $7.33 | ' | $4.51 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Option Granted | ' | 830 | 1,515 | ' | ' | ' | ' | ' | 300 | 100 | ' | ' | ' | ' | ' | ' | ' | ' |
Expiration date of option | 12-Mar-18 | ' | ' | ' | ' | ' | ' | ' | 8-Jul-18 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vest and non-vested shares over service period | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | '3 years | ' | ' | ' | ' | ' | ' | ' |
Option expiration one year from grant date | ' | ' | ' | ' | ' | ' | ' | ' | 'The options have an exercise price of $7.33, expire on July 8, 2018 and vest over three years as follows one third on the one (1) year anniversary of the date of grant, one third on the two (2) year anniversary of the date of grant and one third on the three (3) year anniversary of the date of grant. | 'The options have an exercise price of $4.51, expire on March 12, 2018 and vest over three years as follows one third on the one (1) year anniversary of the date of grant, one third on the two (2) year anniversary of the date of grant and one third on the three (3) year anniversary of the date of grant | ' | ' | ' | ' | 'Stock vests cumulatively as follows 75 thousand shares on October 1, 2014 and 75,000 thousand shares on October 1, 2015 | ' | ' | ' |
Shares of restricted Common Stock | ' | 150 | 1,000 | ' | ' | ' | ' | ' | ' | ' | ' | 500 | 250 | 100 | ' | ' | ' | 150 |
Cumulated Stock vests | ' | ' | ' | ' | ' | ' | ' | 7-Apr-14 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares of restricted Common Stock non-vested | ' | 1,600 | 1,600 | ' | 1,450 | ' | 1,152 | ' | ' | ' | ' | ' | ' | ' | ' | 75 | 75 | ' |
Stockholders_Equity_Activity_R
Stockholders' Equity - Activity Relating to Common Shares (Detail) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Shares repurchased | -592,000 | ' | -7,258,000 | ' |
Options exercised | 135,000 | ' | 2,060,000 | ' |
Shares acquired through cashless exercise | -99,000 | ' | -1,782,000 | -147,000 |
Common Stock [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Beginning balance, shares | ' | ' | 41,889,000 | ' |
Conversion of preferred stock | 220,000 | ' | 220,000 | ' |
Options exercised | ' | ' | 2,060,000 | ' |
Restricted stock grant | ' | ' | 1,000,000 | ' |
Shares cancelled | ' | ' | -1,782,000 | ' |
Ending balance, shares | 43,387,000 | ' | 43,387,000 | ' |
Treasury Stock [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Beginning balance, shares | ' | ' | -1,018,000 | ' |
Shares repurchased | ' | ' | -7,258,000 | ' |
Shares acquired through cashless exercise | ' | ' | -1,782,000 | ' |
Shares cancelled | ' | ' | 1,782,000 | ' |
Ending balance, shares | -8,276,000 | ' | -8,276,000 | ' |
Outstanding Shares [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Beginning balance, shares | ' | ' | 40,871,000 | ' |
Conversion of preferred stock | 220,000 | ' | 220,000 | ' |
Shares repurchased | ' | ' | -7,258,000 | ' |
Options exercised | ' | ' | 2,060,000 | ' |
Restricted stock grant | ' | ' | 1,000,000 | ' |
Shares acquired through cashless exercise | ' | ' | -1,782,000 | ' |
Ending balance, shares | 35,111,000 | ' | 35,111,000 | ' |
Stockholders_Equity_Additional
Stockholders' Equity - Additional Information (Detail) (USD $) | 0 Months Ended | 1 Months Ended | 3 Months Ended | 6 Months Ended | 9 Months Ended | 1 Months Ended | 1 Months Ended | |||||||||||
Feb. 08, 2013 | Aug. 27, 2013 | Apr. 18, 2013 | Sep. 30, 2013 | Mar. 31, 2013 | Sep. 30, 2012 | Jun. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Aug. 14, 2013 | Aug. 31, 2013 | Jul. 31, 2013 | Jul. 24, 2013 | Jul. 24, 2013 | 23-May-13 | Apr. 30, 2013 | Apr. 02, 2013 | 23-May-13 | |
Director [Member] | Chief Executive Officer [Member] | Chief Executive Officer [Member] | Chief Executive Officer [Member] | Chief Executive Officer [Member] | Principal Stockholder [Member] | Principal Stockholder [Member] | Principal Stockholder [Member] | Former Board of Directors Chairman [Member] | ||||||||||
Series M [Member] | Common Stock [Member] | |||||||||||||||||
Equity [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate common stock shares to repurchase | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,000,000 | ' |
Common Stock Repurchase | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,000,000 | 2,000,000 | ' | 2,666,000 |
Repurchase Price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $4.02 | ' | $4.02 | $4.50 |
Number of preferred stock shares converted | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 44,075 | ' | ' | ' | ' | ' |
Preferred stock conversion factor | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5 | ' | ' | ' | ' | ' |
Total amount of stock Issued during the period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 220,375 | ' | ' | ' | ' |
Shares repurchased | ' | ' | ' | 592,000 | ' | ' | ' | 7,258,000 | ' | 241,933 | 350,000 | ' | ' | ' | ' | ' | ' | ' |
Stock repurchase price | ' | ' | ' | ' | ' | ' | ' | ' | ' | $7.57 | ' | $7.02 | ' | ' | ' | ' | ' | ' |
Dividends per share declared on outstanding common stock | $0.08 | $0.10 | $0.08 | $0.10 | ' | $0.08 | ' | $0.26 | $0.26 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Dividends payable date | ' | ' | ' | ' | 5-Apr-13 | ' | 17-Jun-13 | 30-Sep-13 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Dividends payable, shareholders record date | ' | ' | ' | ' | 14-Mar-13 | ' | 3-Jun-13 | 23-Sep-13 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Related_Party_Transactions_Pay
Related Party Transactions - Payments Made by Company to Downes and Associates (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Downes and Associates [Member] | ' | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' | ' |
Downes and Associates / SPC Global RE Advisors LLC | $131 | $131 | $390 | $391 |
SPC Global RE Advisors LLC [Member] | ' | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' | ' |
Downes and Associates / SPC Global RE Advisors LLC | $38 | ' | $38 | ' |
Related_Party_Transactions_Add
Related Party Transactions - Additional Information (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | 23-May-13 |
In Thousands, except Share data in Millions, unless otherwise specified | Downes and Associates [Member] | Downes and Associates [Member] | SPC Global RE Advisors LLC [Member] | Ren Re Ventures [Member] |
Related Party Transaction [Line Items] | ' | ' | ' | ' |
Due to Related Parties | $0 | $0 | $0 | ' |
Repurchase of shares | ' | ' | ' | 2 |
Percentage of outstanding common stock | ' | ' | ' | 4.99% |
Income_Taxes_Deferred_Income_T
Income Taxes - Deferred Income Tax Effects of Temporary Differences (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Deferred income tax assets: | ' | ' |
Unearned premiums | $12,108 | $11,430 |
Advance premium | 1,790 | 1,132 |
Unpaid losses and LAE | 2,756 | 3,449 |
Regulatory assessments | 844 | 2,447 |
Share-based compensation | 1,477 | 3,048 |
Accrued wages | 453 | 778 |
Allowance for uncollectible receivables | 207 | 205 |
Additional tax basis of securities | 45 | 573 |
Unrealized losses on trading investments | ' | 2,782 |
Capital loss carryforwards | 1,204 | ' |
Other comprehensive loss | 306 | ' |
Total deferred income tax assets | 21,190 | 25,844 |
Deferred income tax liabilities: | ' | ' |
Deferred policy acquisition costs, net | -6,540 | -6,666 |
Prepaid expenses | -625 | ' |
Unrealized gains on trading investments | -269 | ' |
Total deferred income tax liabilities | -7,434 | -6,666 |
Net deferred income tax asset | $13,756 | $19,178 |
Income_Taxes_Reconciles_Statut
Income Taxes - Reconciles Statutory Federal Income Tax Rate to Company' s Effective Tax Rate (Detail) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Income Tax Disclosure [Abstract] | ' | ' | ' | ' |
Statutory federal income tax rate | 35.00% | 35.00% | 35.00% | 35.00% |
Increases (decreases) resulting from: | ' | ' | ' | ' |
Disallowed meals & entertainment | 0.20% | 0.50% | 0.30% | 0.30% |
Disallowed compensation | 4.10% | 3.50% | 2.40% | 1.50% |
Fines and penalties | 0.00% | ' | 0.60% | ' |
True-up of prior year tax returns | -0.90% | -1.70% | -0.40% | -0.40% |
State income tax, net of federal tax benefit | 3.60% | 3.60% | 3.60% | 3.60% |
Other, net | 0.60% | ' | 0.30% | ' |
Effective tax rate | 42.60% | 40.90% | 41.80% | 40.00% |
Income_Taxes_Reconciles_Statut1
Income Taxes - Reconciles Statutory Federal Income Tax Rate to Company' s Effective Tax Rate (Parenthetical) (Detail) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Schedule Of Effective Income Tax Rate Reconciliation [Line Items] | ' | ' | ' | ' |
State of Florida income tax at a statutory tax rate | 35.00% | 35.00% | 35.00% | 35.00% |
State of Florida Income Tax Authority [Member] | ' | ' | ' | ' |
Schedule Of Effective Income Tax Rate Reconciliation [Line Items] | ' | ' | ' | ' |
State of Florida income tax at a statutory tax rate | 5.50% | 5.50% | 5.50% | 5.50% |
Earnings_Per_Share_Reconciles_
Earnings Per Share - Reconciles Numerator and Denominator of Basic and Diluted Earnings Per Share Computations for Net Income (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Numerator for EPS: | ' | ' | ' | ' |
Net income | $14,407 | $8,256 | $43,395 | $25,906 |
Less: Preferred stock dividends | -14 | -23 | -24 | -282 |
Income available to common stockholders | $14,393 | $8,233 | $43,371 | $25,624 |
Denominator for EPS: | ' | ' | ' | ' |
Weighted average common shares outstanding | 33,658 | 39,679 | 36,628 | 39,579 |
Plus: Assumed conversion of stock-based compensation | 1,630 | 282 | 1,291 | 390 |
Assumed conversion of preferred stock | 323 | 489 | 433 | 489 |
Weighted average diluted common shares outstanding | 35,611 | 40,450 | 38,352 | 40,458 |
Basic earnings per common share | $0.43 | $0.21 | $1.18 | $0.65 |
Diluted earnings per common share | $0.40 | $0.20 | $1.13 | $0.64 |
Earnings_Per_Share_Additional_
Earnings Per Share - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2013 |
Earnings Per Share [Abstract] | ' | ' |
Common stock purchased | 592 | 7,258 |
Increase in diluted earnings per common share | $0.06 | $0.10 |
Other_Comprehensive_Income_Los2
Other Comprehensive Income (Loss) - Components of Other Comprehensive Income (loss) Pre-tax and After-Tax (Detail) (USD $) | 3 Months Ended | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2013 | |
Equity [Abstract] | ' | ' | |
Net unrealized gains (losses) on available for sale investments arising during the periods, Pre-tax | $3,507 | ($739) | |
Less: realized gains (losses) on investments, Pre-tax | 56 | 55 | |
Change in net unrealized gains (losses) on available for sale investments, Pre-tax | 3,451 | -794 | |
Other comprehensive income (loss), Pre-tax | 3,451 | -794 | |
Net unrealized gains (losses) on available for sale investments arising during the periods | 1,353 | -285 | |
Less: realized gains (losses) on investments | 22 | 21 | |
Change in net unrealized gains (losses) on available for sale investments | 1,331 | -306 | |
Other comprehensive income (loss) | 1,331 | -306 | |
Net unrealized gains (losses) on available for sale investments arising during the periods | 2,154 | -454 | |
Less: realized gains (losses) on investments | 34 | 34 | |
Change in net unrealized gains (losses) on available for sale investments | 2,120 | -488 | [1] |
Other comprehensive income (loss) | $2,120 | ($488) | |
[1] | Represents change in fair value of AFS investments for the period presented, net of tax benefit of $306 thousand. |
Other_Comprehensive_Income_Los3
Other Comprehensive Income (Loss) - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2012 | Sep. 30, 2012 | Sep. 30, 2013 | Dec. 31, 2012 |
Equity [Abstract] | ' | ' | ' | ' |
Other comprehensive income | $0 | $0 | ' | ' |
Accumulated other comprehensive income | ' | ' | ($488) | $0 |
Commitments_and_Contingencies_
Commitments and Contingencies - Additional Information (Detail) (USD $) | 9 Months Ended | |
Sep. 30, 2013 | Jul. 12, 2013 | |
sqft | ||
Commitments And Contingencies Disclosure [Abstract] | ' | ' |
Office building rentable area | ' | 29,018 |
Monthly rent for property | $51,000 | ' |
Term of lease | '10 years | ' |
Purchase of property latest time period | '2015-02 | ' |
Purchase price of property | $5,990,000 | ' |
Fair_Value_Measurements_Assets
Fair Value Measurements - Assets Accounted for at Fair Value on Recurring Basis (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investment Owned, at Fair Value | $509,252 | $469,747 |
Categories of Investments, Marketable Securities, Available-for-Sale Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investment Owned, at Fair Value | 369,366 | ' |
Categories of Investments, Marketable Securities, Trading Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investment Owned, at Fair Value | ' | 89,346 |
Cash and Cash Equivalents [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investment Owned, at Fair Value | 137,286 | 347,392 |
Restricted Cash and Cash Equivalents [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investment Owned, at Fair Value | 2,600 | 33,009 |
U.S. Government Obligations and Agencies [Member] | Categories of Investments, Marketable Securities, Available-for-Sale Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investment Owned, at Fair Value | 104,532 | ' |
U.S. Government Obligations and Agencies [Member] | Categories of Investments, Marketable Securities, Trading Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investment Owned, at Fair Value | ' | 4,009 |
Corporate Bonds [Member] | Categories of Investments, Marketable Securities, Available-for-Sale Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investment Owned, at Fair Value | 98,978 | ' |
Mortgage-Backed and Asset-Backed Securities [Member] | Categories of Investments, Marketable Securities, Available-for-Sale Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investment Owned, at Fair Value | 94,994 | ' |
Common Stock [Member] | Categories of Investments, Marketable Securities, Available-for-Sale Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investment Owned, at Fair Value | 20,057 | ' |
Mutual Funds [Member] | Categories of Investments, Marketable Securities, Available-for-Sale Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investment Owned, at Fair Value | 50,805 | ' |
Equity Securities, Common Stock, Metals and Mining [Member] | Categories of Investments, Marketable Securities, Trading Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investment Owned, at Fair Value | ' | 26,130 |
Equity Securities, Common Stock, Energy [Member] | Categories of Investments, Marketable Securities, Trading Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investment Owned, at Fair Value | ' | 10,868 |
Equity Securities, Common Stock, Other [Member] | Categories of Investments, Marketable Securities, Trading Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investment Owned, at Fair Value | ' | 8,215 |
Equity Securities, Exchange-Traded and Mutual Funds, Metals and Mining [Member] | Categories of Investments, Marketable Securities, Trading Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investment Owned, at Fair Value | ' | 21,989 |
Equity Securities, Exchange-Traded and Mutual Funds, Agriculture [Member] | Categories of Investments, Marketable Securities, Trading Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investment Owned, at Fair Value | ' | 10,265 |
Equity Securities, Exchange-Traded and Mutual Funds, Energy [Member] | Categories of Investments, Marketable Securities, Trading Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investment Owned, at Fair Value | ' | 5,068 |
Equity Securities, Exchange-Traded and Mutual Funds, Indices [Member] | Categories of Investments, Marketable Securities, Trading Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investment Owned, at Fair Value | ' | 2,506 |
Other Investments [Member] | Categories of Investments, Marketable Securities, Trading Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investment Owned, at Fair Value | ' | 317 |
Fair Value, Measurements, Recurring [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investment Owned, at Fair Value | 509,252 | 469,747 |
Fair Value, Measurements, Recurring [Member] | Categories of Investments, Marketable Securities, Available-for-Sale Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investment Owned, at Fair Value | 369,366 | ' |
Fair Value, Measurements, Recurring [Member] | Categories of Investments, Marketable Securities, Trading Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investment Owned, at Fair Value | ' | 89,346 |
Fair Value, Measurements, Recurring [Member] | Cash and Cash Equivalents [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investment Owned, at Fair Value | 137,286 | 347,392 |
Fair Value, Measurements, Recurring [Member] | Restricted Cash and Cash Equivalents [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investment Owned, at Fair Value | 2,600 | 33,009 |
Fair Value, Measurements, Recurring [Member] | U.S. Government Obligations and Agencies [Member] | Categories of Investments, Marketable Securities, Available-for-Sale Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investment Owned, at Fair Value | 104,532 | ' |
Fair Value, Measurements, Recurring [Member] | U.S. Government Obligations and Agencies [Member] | Categories of Investments, Marketable Securities, Trading Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investment Owned, at Fair Value | ' | 4,009 |
Fair Value, Measurements, Recurring [Member] | Corporate Bonds [Member] | Categories of Investments, Marketable Securities, Available-for-Sale Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investment Owned, at Fair Value | 98,978 | ' |
Fair Value, Measurements, Recurring [Member] | Mortgage-Backed and Asset-Backed Securities [Member] | Categories of Investments, Marketable Securities, Available-for-Sale Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investment Owned, at Fair Value | 94,994 | ' |
Fair Value, Measurements, Recurring [Member] | Common Stock [Member] | Categories of Investments, Marketable Securities, Available-for-Sale Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investment Owned, at Fair Value | 20,057 | ' |
Fair Value, Measurements, Recurring [Member] | Mutual Funds [Member] | Categories of Investments, Marketable Securities, Available-for-Sale Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investment Owned, at Fair Value | 50,805 | ' |
Fair Value, Measurements, Recurring [Member] | Equity Securities, Common Stock, Metals and Mining [Member] | Categories of Investments, Marketable Securities, Trading Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investment Owned, at Fair Value | ' | 26,130 |
Fair Value, Measurements, Recurring [Member] | Equity Securities, Common Stock, Energy [Member] | Categories of Investments, Marketable Securities, Trading Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investment Owned, at Fair Value | ' | 10,868 |
Fair Value, Measurements, Recurring [Member] | Equity Securities, Common Stock, Other [Member] | Categories of Investments, Marketable Securities, Trading Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investment Owned, at Fair Value | ' | 8,215 |
Fair Value, Measurements, Recurring [Member] | Equity Securities, Exchange-Traded and Mutual Funds, Metals and Mining [Member] | Categories of Investments, Marketable Securities, Trading Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investment Owned, at Fair Value | ' | 21,989 |
Fair Value, Measurements, Recurring [Member] | Equity Securities, Exchange-Traded and Mutual Funds, Agriculture [Member] | Categories of Investments, Marketable Securities, Trading Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investment Owned, at Fair Value | ' | 10,265 |
Fair Value, Measurements, Recurring [Member] | Equity Securities, Exchange-Traded and Mutual Funds, Energy [Member] | Categories of Investments, Marketable Securities, Trading Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investment Owned, at Fair Value | ' | 5,068 |
Fair Value, Measurements, Recurring [Member] | Equity Securities, Exchange-Traded and Mutual Funds, Indices [Member] | Categories of Investments, Marketable Securities, Trading Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investment Owned, at Fair Value | ' | 2,506 |
Fair Value, Measurements, Recurring [Member] | Non-Hedging Derivate Liability, Net [Member] | Categories of Investments, Marketable Securities, Trading Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investment Owned, at Fair Value | ' | -21 |
Fair Value, Measurements, Recurring [Member] | Other Investments [Member] | Categories of Investments, Marketable Securities, Trading Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investment Owned, at Fair Value | ' | 317 |
Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investment Owned, at Fair Value | 210,748 | 465,759 |
Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Categories of Investments, Marketable Securities, Available-for-Sale Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investment Owned, at Fair Value | 70,862 | ' |
Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Categories of Investments, Marketable Securities, Trading Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investment Owned, at Fair Value | ' | 85,358 |
Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Cash and Cash Equivalents [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investment Owned, at Fair Value | 137,286 | 347,392 |
Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Restricted Cash and Cash Equivalents [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investment Owned, at Fair Value | 2,600 | 33,009 |
Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Common Stock [Member] | Categories of Investments, Marketable Securities, Available-for-Sale Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investment Owned, at Fair Value | 20,057 | ' |
Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Mutual Funds [Member] | Categories of Investments, Marketable Securities, Available-for-Sale Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investment Owned, at Fair Value | 50,805 | ' |
Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Equity Securities, Common Stock, Metals and Mining [Member] | Categories of Investments, Marketable Securities, Trading Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investment Owned, at Fair Value | ' | 26,130 |
Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Equity Securities, Common Stock, Energy [Member] | Categories of Investments, Marketable Securities, Trading Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investment Owned, at Fair Value | ' | 10,868 |
Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Equity Securities, Common Stock, Other [Member] | Categories of Investments, Marketable Securities, Trading Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investment Owned, at Fair Value | ' | 8,215 |
Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Equity Securities, Exchange-Traded and Mutual Funds, Metals and Mining [Member] | Categories of Investments, Marketable Securities, Trading Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investment Owned, at Fair Value | ' | 21,989 |
Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Equity Securities, Exchange-Traded and Mutual Funds, Agriculture [Member] | Categories of Investments, Marketable Securities, Trading Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investment Owned, at Fair Value | ' | 10,265 |
Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Equity Securities, Exchange-Traded and Mutual Funds, Energy [Member] | Categories of Investments, Marketable Securities, Trading Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investment Owned, at Fair Value | ' | 5,068 |
Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Equity Securities, Exchange-Traded and Mutual Funds, Indices [Member] | Categories of Investments, Marketable Securities, Trading Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investment Owned, at Fair Value | ' | 2,506 |
Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Other Investments [Member] | Categories of Investments, Marketable Securities, Trading Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investment Owned, at Fair Value | ' | 317 |
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investment Owned, at Fair Value | 298,504 | 3,988 |
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Categories of Investments, Marketable Securities, Available-for-Sale Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investment Owned, at Fair Value | 298,504 | ' |
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Categories of Investments, Marketable Securities, Trading Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investment Owned, at Fair Value | ' | 3,988 |
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | U.S. Government Obligations and Agencies [Member] | Categories of Investments, Marketable Securities, Available-for-Sale Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investment Owned, at Fair Value | 104,532 | ' |
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | U.S. Government Obligations and Agencies [Member] | Categories of Investments, Marketable Securities, Trading Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investment Owned, at Fair Value | ' | 4,009 |
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Corporate Bonds [Member] | Categories of Investments, Marketable Securities, Available-for-Sale Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investment Owned, at Fair Value | 98,978 | ' |
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Mortgage-Backed and Asset-Backed Securities [Member] | Categories of Investments, Marketable Securities, Available-for-Sale Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investment Owned, at Fair Value | 94,994 | ' |
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Non-Hedging Derivate Liability, Net [Member] | Categories of Investments, Marketable Securities, Trading Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investment Owned, at Fair Value | ' | -21 |
Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investment Owned, at Fair Value | ' | ' |
Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | Categories of Investments, Marketable Securities, Available-for-Sale Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investment Owned, at Fair Value | ' | ' |
Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | Categories of Investments, Marketable Securities, Trading Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investment Owned, at Fair Value | ' | ' |
Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | Cash and Cash Equivalents [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investment Owned, at Fair Value | ' | ' |
Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | Restricted Cash and Cash Equivalents [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investment Owned, at Fair Value | ' | ' |
Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | U.S. Government Obligations and Agencies [Member] | Categories of Investments, Marketable Securities, Available-for-Sale Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investment Owned, at Fair Value | ' | ' |
Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | U.S. Government Obligations and Agencies [Member] | Categories of Investments, Marketable Securities, Trading Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investment Owned, at Fair Value | ' | ' |
Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | Corporate Bonds [Member] | Categories of Investments, Marketable Securities, Available-for-Sale Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investment Owned, at Fair Value | ' | ' |
Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | Mortgage-Backed and Asset-Backed Securities [Member] | Categories of Investments, Marketable Securities, Available-for-Sale Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investment Owned, at Fair Value | ' | ' |
Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | Common Stock [Member] | Categories of Investments, Marketable Securities, Available-for-Sale Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investment Owned, at Fair Value | ' | ' |
Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | Mutual Funds [Member] | Categories of Investments, Marketable Securities, Available-for-Sale Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investment Owned, at Fair Value | ' | ' |
Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | Equity Securities, Common Stock, Metals and Mining [Member] | Categories of Investments, Marketable Securities, Trading Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investment Owned, at Fair Value | ' | ' |
Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | Equity Securities, Common Stock, Energy [Member] | Categories of Investments, Marketable Securities, Trading Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investment Owned, at Fair Value | ' | ' |
Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | Equity Securities, Common Stock, Other [Member] | Categories of Investments, Marketable Securities, Trading Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investment Owned, at Fair Value | ' | ' |
Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | Equity Securities, Exchange-Traded and Mutual Funds, Metals and Mining [Member] | Categories of Investments, Marketable Securities, Trading Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investment Owned, at Fair Value | ' | ' |
Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | Equity Securities, Exchange-Traded and Mutual Funds, Agriculture [Member] | Categories of Investments, Marketable Securities, Trading Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investment Owned, at Fair Value | ' | ' |
Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | Equity Securities, Exchange-Traded and Mutual Funds, Energy [Member] | Categories of Investments, Marketable Securities, Trading Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investment Owned, at Fair Value | ' | ' |
Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | Equity Securities, Exchange-Traded and Mutual Funds, Indices [Member] | Categories of Investments, Marketable Securities, Trading Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investment Owned, at Fair Value | ' | ' |
Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | Non-Hedging Derivate Liability, Net [Member] | Categories of Investments, Marketable Securities, Trading Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investment Owned, at Fair Value | ' | ' |
Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | Other Investments [Member] | Categories of Investments, Marketable Securities, Trading Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Investment Owned, at Fair Value | ' | ' |
Fair_Value_Measurements_Summar
Fair Value Measurements - Summarizes Carrying Value and Estimated Fair Values of Financial Instruments not Carried at Fair Value (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Surplus Note [Member] | ' | ' |
Fair Value Inputs Assets Liabilities Quantitative Information [Line Items] | ' | ' |
Carrying value | $19,118 | $20,221 |
Term Loan [Member] | ' | ' |
Fair Value Inputs Assets Liabilities Quantitative Information [Line Items] | ' | ' |
Carrying value | 18,238 | ' |
Level 3 [Member] | Surplus Note [Member] | ' | ' |
Fair Value Inputs Assets Liabilities Quantitative Information [Line Items] | ' | ' |
Estimated fair value | 16,310 | 18,057 |
Level 3 [Member] | Term Loan [Member] | ' | ' |
Fair Value Inputs Assets Liabilities Quantitative Information [Line Items] | ' | ' |
Estimated fair value | $18,238 | ' |
Subsequent_Events_Additional_I
Subsequent Events - Additional Information (Detail) (Subsequent Event [Member], USD $) | 1 Months Ended | |
In Millions, unless otherwise specified | Oct. 18, 2013 | Oct. 04, 2013 |
Subsequent Event [Member] | ' | ' |
Subsequent Event [Line Items] | ' | ' |
Financial penalties | ' | $1.30 |
Administration fine paid | $1.30 | ' |