Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended | |
Jun. 30, 2014 | Jul. 31, 2014 | |
Document And Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Jun-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q2 | ' |
Trading Symbol | 'UVE | ' |
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 | ' | 34,781,013 |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
ASSETS | ' | ' |
Cash and cash equivalents | $201,357 | $117,275 |
Restricted cash and cash equivalents | 2,635 | 2,600 |
Fixed maturities, at fair value | 323,145 | 289,418 |
Equity securities, at fair value | 12,420 | 65,022 |
Prepaid reinsurance premiums | 193,811 | 241,214 |
Reinsurance recoverable | 77,566 | 107,847 |
Reinsurance receivable, net | 26,352 | 203 |
Premiums receivable, net | 55,005 | 46,461 |
Other receivables | 3,340 | 2,587 |
Property and equipment, net | 9,815 | 9,289 |
Deferred policy acquisition costs, net | 28,077 | 15,899 |
Income taxes recoverable | 2,824 | 8,152 |
Deferred income tax asset, net | 11,813 | 12,051 |
Other assets | 2,242 | 2,072 |
Total assets | 950,402 | 920,090 |
LIABILITIES: | ' | ' |
Unpaid losses and loss adjustment expenses | 144,625 | 159,222 |
Unearned premiums | 412,709 | 383,488 |
Advance premium | 22,671 | 22,959 |
Accounts payable | 4,809 | 3,441 |
Book overdraft | 4,312 | 14,947 |
Payable for securities purchased | 1,026 | ' |
Reinsurance payable, net | 120,095 | 86,232 |
Income taxes payable | 407 | 2,566 |
Dividends payable to shareholders | 3,503 | ' |
Other liabilities and accrued expenses | 27,161 | 34,386 |
Long-term debt | 30,984 | 37,240 |
Total liabilities | 772,302 | 744,481 |
Commitments and Contingencies (Note 12) | ' | ' |
STOCKHOLDERS' EQUITY: | ' | ' |
Cumulative convertible preferred stock, $.01 par value Authorized shares - 1,000 Issued shares - 12 and 30 Outstanding shares - 12 and 30 Minimum liquidation preference, $8.49 and $6.98 per share | 0 | 0 |
Common stock, $.01 par value Authorized shares - 55,000 Issued shares - 44,935 and 43,641 Outstanding shares - 34,988 and 35,366 | 449 | 436 |
Treasury shares, at cost - 9,947 and 8,275 | -55,701 | -35,467 |
Additional paid-in capital | 41,539 | 42,282 |
Accumulated other comprehensive income (loss), net of taxes | -623 | -376 |
Retained earnings | 192,436 | 168,734 |
Total stockholders' equity | 178,100 | 175,609 |
Total liabilities and stockholders' equity | $950,402 | $920,090 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (Parenthetical) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
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 | 12 | 30 |
Cumulative convertible preferred stock, shares outstanding | 12 | 30 |
Cumulative convertible preferred stock, minimum liquidation preference | $8.49 | $6.98 |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 55,000 | 55,000 |
Common stock, shares issued | 44,935 | 43,641 |
Common stock, shares outstanding | 34,988 | 35,366 |
Treasury stock, shares | 9,947 | 8,275 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (unaudited) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
PREMIUMS EARNED AND OTHER REVENUES | ' | ' | ' | ' |
Direct premiums written | $220,009 | $219,946 | $411,926 | $424,085 |
Ceded premiums written | -76,483 | -133,897 | -198,132 | -275,214 |
Net premiums written | 143,526 | 86,049 | 213,794 | 148,871 |
Change in net unearned premium | -70,164 | -19,182 | -76,625 | -16,595 |
Premiums earned, net | 73,362 | 66,867 | 137,169 | 132,276 |
Net investment income (expense) | 412 | 137 | 930 | 149 |
Net realized gains (losses) on investments | 3,950 | -1 | 4,852 | -16,038 |
Net change in unrealized gains (losses) on investments | 0 | 23 | 0 | 7,897 |
Commission revenue | 3,670 | 5,271 | 7,759 | 10,257 |
Policy fees | 3,899 | 3,819 | 7,411 | 7,505 |
Other revenue | 1,696 | 1,640 | 3,173 | 3,165 |
Total premiums earned and other revenues | 86,989 | 77,756 | 161,294 | 145,211 |
OPERATING COSTS AND EXPENSES | ' | ' | ' | ' |
Losses and loss adjustment expenses | 27,679 | 25,199 | 54,504 | 51,682 |
General and administrative expenses | 28,901 | 22,869 | 53,264 | 44,079 |
Total operating costs and expenses | 56,580 | 48,068 | 107,768 | 95,761 |
INCOME BEFORE INCOME TAXES | 30,409 | 29,688 | 53,526 | 49,450 |
Income taxes, current | 13,398 | 12,351 | 22,457 | 16,298 |
Income taxes, deferred | -115 | 308 | 394 | 4,164 |
Income taxes, net | 13,283 | 12,659 | 22,851 | 20,462 |
NET INCOME | $17,126 | $17,029 | $30,675 | $28,988 |
Basic earnings per common share | $0.50 | $0.47 | $0.91 | $0.76 |
Weighted average common shares outstanding - Basic | 33,968 | 36,378 | 33,696 | 38,138 |
Fully diluted earnings per common share | $0.49 | $0.44 | $0.87 | $0.73 |
Weighted average common shares outstanding - Diluted | 35,174 | 38,314 | 35,450 | 39,760 |
Cash dividend declared per common share | $0.10 | $0.08 | $0.20 | $0.16 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Statement Of Income And Comprehensive Income [Abstract] | ' | ' | ' | ' |
Net income | $17,126 | $17,029 | $30,675 | $28,988 |
Other comprehensive income (loss), net of taxes | -359 | -2,608 | -247 | -2,608 |
Comprehensive income (loss) | $16,767 | $14,421 | $30,428 | $26,380 |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Cash flows from operating activities: | ' | ' |
Net income | $30,675 | $28,988 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Bad debt expense | 166 | 254 |
Depreciation | 551 | 497 |
Amortization of share-based compensation | 5,210 | 2,928 |
Amortization of original issue discount on debt | 480 | 101 |
Accretion of deferred credit | -480 | -101 |
Book overdraft increase (decrease) | -10,635 | -1,068 |
Net realized (gains) losses on investments | -4,852 | 16,038 |
Net change in unrealized (gains) losses on investments | 0 | -7,897 |
Amortization of premium/accretion of discount, net | 1,007 | 287 |
Deferred income taxes | 394 | 4,164 |
Excess tax (benefits) shortfall from share-based compensation | -6,342 | -4 |
Other | -5 | 5 |
Net change in assets and liabilities relating to operating activities: | ' | ' |
Restricted cash and cash equivalents | -35 | 30,356 |
Prepaid reinsurance premiums | 47,403 | -16,020 |
Reinsurance recoverable | 30,281 | 10,040 |
Reinsurance receivable, net | -26,149 | -208 |
Premiums receivable, net | -8,707 | -6,972 |
Accrued investment income | -30 | -729 |
Other receivables | -721 | -1,431 |
Income taxes recoverable | 5,328 | -6,484 |
Deferred policy acquisition costs, net | -12,178 | 41 |
Purchase of trading securities | 0 | -26,009 |
Proceeds from sales of trading securities | 0 | 102,661 |
Other assets | -170 | -849 |
Unpaid losses and loss adjustment expenses | -14,597 | -26,981 |
Unearned premiums | 29,221 | 32,616 |
Accounts payable | 1,368 | 642 |
Reinsurance payable, net | 33,863 | 49,440 |
Income taxes payable | 4,183 | -502 |
Other liabilities and accrued expenses | -6,745 | -2,336 |
Advance premium | -288 | 10,649 |
Net cash provided by (used in) operating activities | 98,196 | 192,116 |
Cash flows from investing activities: | ' | ' |
Proceeds from sale of property and equipment | 30 | 5 |
Purchase of property and equipment | -1,108 | -848 |
Purchases of available for sale equity securities | -13,251 | -51,836 |
Purchases of available for sale fixed maturities | -49,230 | -292,989 |
Proceeds from sales of available for sale equity securities | 68,417 | 14 |
Proceeds from sales of available for sale fixed maturities | 4,371 | 0 |
Maturities of available for sale fixed maturities | 12,541 | 4,531 |
Net cash provided by (used in) investing activities | 21,770 | -341,123 |
Cash flows from financing activities: | ' | ' |
Preferred stock dividend | -8 | -10 |
Common stock dividend | -3,464 | -6,080 |
Purchase of treasury stock | -19,737 | -28,077 |
Payments related to tax withholding for share-based compensation | -12,282 | -2,630 |
Excess tax benefits (shortfall) from share-based compensation | 6,342 | 4 |
Repayment of debt | -6,735 | -735 |
Proceeds from borrowings | 0 | 20,000 |
Net cash provided by (used in) financing activities | -35,884 | -17,528 |
Net increase (decrease) in cash and cash equivalents | 84,082 | -166,535 |
Cash and cash equivalents at beginning of period | 117,275 | 347,392 |
Cash and cash equivalents at end of period | 201,357 | 180,857 |
Supplemental cash flow and non-cash disclosures: | ' | ' |
Interest paid | 828 | 319 |
Income taxes paid | 12,935 | 7,833 |
Non-cash transfer of investments from trading to available for sale portfolio | $0 | $4,004 |
Nature_of_Operations_and_Basis
Nature of Operations and Basis of Presentation | 6 Months Ended | |
Jun. 30, 2014 | ||
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 eight states as of June 30, 2014, 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. | ||
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, 2013, filed with the SEC on March 3, 2014. The condensed consolidated balance sheet at December 31, 2013, 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. | ||
To conform to current period presentation, certain amounts in the prior periods’ consolidated financial statements and notes have been reclassified. Such reclassifications were of an immaterial amount and had no effect on net income or stockholders’ equity. | ||
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 | 6 Months Ended | ||
Jun. 30, 2014 | |||
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, 2013. There are no new or revised disclosures or disclosures required on a quarterly basis. | |||
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. The Company adopted this guidance effective January 1, 2014. The adoption did not have an impact on the presentation of the Company’s financial statements and notes herein. | |||
In June 2011, the FASB updated its guidance to the Comprehensive Income Topic 220 of the FASB Accounting Standards Codification 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 results in additional disclosures 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. |
Investments
Investments | 6 Months Ended | ||||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||||
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 dates presented (in thousands): | |||||||||||||||||||||||||
June 30, 2014 | December 31, 2013 | ||||||||||||||||||||||||
Cost or | Cost or | ||||||||||||||||||||||||
Amortized | Carrying | Amortized | Carrying | ||||||||||||||||||||||
Cost | Fair Value | Value | Cost | Fair Value | Value | ||||||||||||||||||||
Cash and cash equivalents (1) | $ | 201,357 | $ | 201,357 | $ | 201,357 | $ | 117,275 | $ | 117,275 | $ | 117,275 | |||||||||||||
Restricted cash and cash equivalents | 2,635 | 2,635 | 2,635 | 2,600 | 2,600 | 2,600 | |||||||||||||||||||
Fixed maturities: | |||||||||||||||||||||||||
U.S. government obligations and agencies | 116,931 | 116,422 | 116,422 | 105,229 | 104,215 | 104,215 | |||||||||||||||||||
Corporate bonds | 106,450 | 106,745 | 106,745 | 94,708 | 94,203 | 94,203 | |||||||||||||||||||
Mortgage-backed and asset-backed securities | 95,054 | 94,908 | 94,908 | 91,502 | 91,000 | 91,000 | |||||||||||||||||||
Redeemable preferred stock | 4,990 | 5,070 | 5,070 | — | — | — | |||||||||||||||||||
Equity securities: | |||||||||||||||||||||||||
Common stock | 652 | 590 | 590 | 8,500 | 9,295 | 9,295 | |||||||||||||||||||
Mutual funds | 12,502 | 11,830 | 11,830 | 55,113 | 55,727 | 55,727 | |||||||||||||||||||
Total investments | 336,579 | 335,565 | 335,565 | 355,052 | 354,440 | 354,440 | |||||||||||||||||||
Total | $ | 540,571 | $ | 539,557 | $ | 539,557 | $ | 474,927 | $ | 474,315 | $ | 474,315 | |||||||||||||
-1 | Cash and cash equivalents include short-term debt securities consisting of direct obligations of the U.S. Treasury and/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. | ||||||||||||||||||||||||
The Company has made an assessment of its invested assets for fair value measurement as further described in “— Note 13 (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 | Six Months Ended | ||||||||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||
Cash and cash equivalents (1) | $ | 9 | $ | 122 | $ | 21 | $ | 242 | |||||||||||||||||
Fixed maturities | 783 | (30 | ) | 1,511 | (30 | ) | |||||||||||||||||||
Equity securities | 152 | 279 | 454 | 367 | |||||||||||||||||||||
Total investment income | 944 | 371 | 1,986 | 579 | |||||||||||||||||||||
Less investment expenses | (532 | ) | (234 | ) | (1,056 | ) | (430 | ) | |||||||||||||||||
Net investment (expense) income | $ | 412 | $ | 137 | $ | 930 | $ | 149 | |||||||||||||||||
-1 | Includes interest earned on restricted cash and cash equivalents. | ||||||||||||||||||||||||
Securities Available for Sale | |||||||||||||||||||||||||
The following table provides the cost or amortized cost and fair value of securities available for sale as of the dates presented (in thousands): | |||||||||||||||||||||||||
30-Jun-14 | |||||||||||||||||||||||||
Cost or | Gross | Gross | Fair Value | ||||||||||||||||||||||
Amortized | Unrealized | Unrealized | |||||||||||||||||||||||
Cost | Gains | Losses | |||||||||||||||||||||||
Fixed Maturities: | |||||||||||||||||||||||||
U.S. government obligations and agencies | $ | 116,931 | $ | 77 | $ | (586 | ) | $ | 116,422 | ||||||||||||||||
Corporate bonds | 106,450 | 443 | (148 | ) | 106,745 | ||||||||||||||||||||
Mortgage-backed and asset-backed securities | 95,054 | 204 | (350 | ) | 94,908 | ||||||||||||||||||||
Redeemable preferred stock | 4,990 | 82 | (2 | ) | 5,070 | ||||||||||||||||||||
Equity Securities: | |||||||||||||||||||||||||
Common stock | 652 | 3 | (65 | ) | 590 | ||||||||||||||||||||
Mutual funds | 12,502 | 19 | (691 | ) | 11,830 | ||||||||||||||||||||
Total | $ | 336,579 | $ | 828 | $ | (1,842 | ) | $ | 335,565 | ||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
Cost or | Gross | Gross | Fair Value | ||||||||||||||||||||||
Amortized | Unrealized | Unrealized | |||||||||||||||||||||||
Cost | Gains | Losses | |||||||||||||||||||||||
Fixed Maturities: | |||||||||||||||||||||||||
U.S. government obligations and agencies | $ | 105,229 | $ | 19 | $ | (1,033 | ) | $ | 104,215 | ||||||||||||||||
Corporate bonds | 94,708 | 265 | (770 | ) | 94,203 | ||||||||||||||||||||
Mortgage-backed and asset-backed securities | 91,502 | 75 | (577 | ) | 91,000 | ||||||||||||||||||||
Equity Securities: | |||||||||||||||||||||||||
Common stock | 8,500 | 916 | (121 | ) | 9,295 | ||||||||||||||||||||
Mutual funds | 55,113 | 2,266 | (1,652 | ) | 55,727 | ||||||||||||||||||||
Total | $ | 355,052 | $ | 3,541 | $ | (4,153 | ) | $ | 354,440 | ||||||||||||||||
The following table provides the credit quality of fixed maturities as of the dates presented (in thousands): | |||||||||||||||||||||||||
June 30, 2014 | |||||||||||||||||||||||||
Standard and Poor’s | Fair Value | % of Total | |||||||||||||||||||||||
Rating Services | Fair Value | ||||||||||||||||||||||||
AAA | $ | 30,547 | 9.5 | % | |||||||||||||||||||||
AA | 191,775 | 59.3 | % | ||||||||||||||||||||||
A | 49,930 | 15.5 | % | ||||||||||||||||||||||
BBB | 41,812 | 12.9 | % | ||||||||||||||||||||||
BB and Below | 1,504 | 0.5 | % | ||||||||||||||||||||||
No Rating Available | 7,577 | 2.3 | % | ||||||||||||||||||||||
Total | $ | 323,145 | 100 | % | |||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||
Standard and Poor’s | Fair Value | % of Total | |||||||||||||||||||||||
Rating Services | Fair Value | ||||||||||||||||||||||||
AAA | $ | 82,889 | 28.6 | % | |||||||||||||||||||||
AA | 120,976 | 41.8 | % | ||||||||||||||||||||||
A | 46,689 | 16.1 | % | ||||||||||||||||||||||
BBB | 38,114 | 13.2 | % | ||||||||||||||||||||||
No Rating Available | 750 | 0.3 | % | ||||||||||||||||||||||
Total | $ | 289,418 | 100 | % | |||||||||||||||||||||
The following table summarizes the cost or amortized cost and fair value of mortgage-backed and asset-backed securities as of the dates presented (in thousands): | |||||||||||||||||||||||||
June 30, 2014 | December 31, 2013 | ||||||||||||||||||||||||
Cost or | Cost or | ||||||||||||||||||||||||
Amortized | Amortized | ||||||||||||||||||||||||
Cost | Fair Value | Cost | Fair Value | ||||||||||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||||||
Agency | $ | 57,935 | $ | 57,737 | $ | 64,028 | $ | 63,547 | |||||||||||||||||
Non-agency | 2,184 | 2,169 | — | — | |||||||||||||||||||||
Asset-backed securities: | |||||||||||||||||||||||||
Auto loan receivables | 16,858 | 16,907 | 14,816 | 14,841 | |||||||||||||||||||||
Credit card receivables | 13,478 | 13,479 | 11,478 | 11,425 | |||||||||||||||||||||
Other receivables | 4,599 | 4,616 | 1,180 | 1,187 | |||||||||||||||||||||
Total | $ | 95,054 | $ | 94,908 | $ | 91,502 | $ | 91,000 | |||||||||||||||||
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 the dates presented (in thousands): | |||||||||||||||||||||||||
June 30, 2014 | |||||||||||||||||||||||||
Less Than 12 Months | 12 Months or Longer | ||||||||||||||||||||||||
Number of | Fair Value | Unrealized | Number of | Fair Value | Unrealized | ||||||||||||||||||||
Issues | Losses | Issues | Losses | ||||||||||||||||||||||
Fixed maturities: | |||||||||||||||||||||||||
U.S. government obligations and agencies | 2 | $ | 17,604 | $ | (79 | ) | 4 | $ | 34,152 | $ | (507 | ) | |||||||||||||
Corporate bonds | 9 | 5,954 | (28 | ) | 14 | 17,905 | (120 | ) | |||||||||||||||||
Mortgage-backed and asset-backed securities | 8 | 27,200 | (106 | ) | 5 | 19,175 | (244 | ) | |||||||||||||||||
Redeemable preferred stock | 9 | 1,080 | (2 | ) | — | — | — | ||||||||||||||||||
Equity securities: | |||||||||||||||||||||||||
Common stock | 5 | 228 | (23 | ) | 5 | 282 | (42 | ) | |||||||||||||||||
Mutual funds | 1 | 1,159 | (76 | ) | 1 | 10,071 | (615 | ) | |||||||||||||||||
Total | 34 | $ | 53,225 | $ | (314 | ) | 29 | $ | 81,585 | $ | (1,528 | ) | |||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
Less Than 12 Months | 12 Months or Longer | ||||||||||||||||||||||||
Number of | Fair Value | Unrealized | Number of | Fair Value | Unrealized | ||||||||||||||||||||
Issues | Losses | Issues | Losses | ||||||||||||||||||||||
Fixed maturities: | |||||||||||||||||||||||||
U.S. government obligations and agencies | 6 | $ | 71,042 | $ | (1,033 | ) | — | $ | — | $ | — | ||||||||||||||
Corporate bonds | 55 | 65,926 | (770 | ) | — | — | — | ||||||||||||||||||
Mortgage-backed and asset-backed securities | 16 | 67,110 | (577 | ) | — | — | — | ||||||||||||||||||
Equity securities: | |||||||||||||||||||||||||
Common stock | 13 | 3,517 | (121 | ) | — | — | — | ||||||||||||||||||
Mutual funds | 5 | 19,646 | (1,652 | ) | — | — | — | ||||||||||||||||||
Total | 95 | $ | 227,241 | $ | (4,153 | ) | — | $ | — | $ | — | ||||||||||||||
At June 30, 2014, we held fixed maturity and equity securities that were in an unrealized loss position as presented in the table above. For fixed maturity securities with significant declines in value, we perform quarterly 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 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 June 30, 2014 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 the date presented (in thousands): | |||||||||||||||||||||||||
June 30, 2014 | |||||||||||||||||||||||||
Amortized | Fair Value | ||||||||||||||||||||||||
Cost | |||||||||||||||||||||||||
Due in one year or less | $ | 52,364 | $ | 52,346 | |||||||||||||||||||||
Due after one year through five years | 165,335 | 165,278 | |||||||||||||||||||||||
Due after five years through ten years | 5,094 | 4,970 | |||||||||||||||||||||||
Due after ten years | 2,636 | 2,678 | |||||||||||||||||||||||
Mortgage-backed and asset-backed securities | 95,054 | 94,908 | |||||||||||||||||||||||
Perpetual maturity securities | 2,942 | 2,965 | |||||||||||||||||||||||
Total | $ | 323,425 | $ | 323,145 | |||||||||||||||||||||
Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay with or without penalty. | |||||||||||||||||||||||||
The following table provides certain information related to securities available for sale during the period presented (in thousands): | |||||||||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||
Sales proceeds (fair value) | $ | 58,347 | $ | 14 | $ | 72,788 | $ | 14 | |||||||||||||||||
Gross realized gains | $ | 4,189 | $ | — | $ | 5,188 | $ | — | |||||||||||||||||
Gross realized losses | $ | (239 | ) | $ | (1 | ) | $ | (336 | ) | $ | (1 | ) | |||||||||||||
Other than temporary losses | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||
Trading Portfolio | |||||||||||||||||||||||||
The following table provides the effect of trading activities on the Company’s results of operations for the period presented by type of instrument and by line item in the Condensed Consolidated Statements of Income (in thousands): | |||||||||||||||||||||||||
Six Months | |||||||||||||||||||||||||
Ended | |||||||||||||||||||||||||
June 30, | |||||||||||||||||||||||||
2013 | |||||||||||||||||||||||||
Realized gains (losses) on investments: | |||||||||||||||||||||||||
Equity securities | $ | (15,969 | ) | ||||||||||||||||||||||
Derivatives (non-hedging instruments) (1) | (68 | ) | |||||||||||||||||||||||
Total realized gains (losses) on trading portfolio | (16,037 | ) | |||||||||||||||||||||||
Change in unrealized gains (losses) on investments: | |||||||||||||||||||||||||
Fixed maturities | 13 | ||||||||||||||||||||||||
Equity securities | 7,758 | ||||||||||||||||||||||||
Derivatives (non-hedging instruments) (1) | 89 | ||||||||||||||||||||||||
Other | 14 | ||||||||||||||||||||||||
Total change in unrealized gains (losses) on trading portfolio | 7,874 | ||||||||||||||||||||||||
Net gains (losses) recognized on trading portfolio | $ | (8,163 | ) | ||||||||||||||||||||||
-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. | ||||||||||||||||||||||||
The Company liquidated its trading portfolio in March 2013; therefore, for periods subsequent to March 31, 2013 there was no effect of trading activities on the Company’s results of operations. |
Reinsurance
Reinsurance | 6 Months Ended | ||||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||||
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 remains responsible for the settlement of insured losses irrespective of the failure of any of its reinsurers to make payments otherwise due to the Company. | |||||||||||||||||||||||||
The Company reduced the percentage of premiums ceded by UPCIC to its quota share reinsurers to 30% beginning with the reinsurance program effective June 1, 2014, from 45% under the prior year quota share contracts that were effective June 1, 2013 through May 31, 2014. By ceding 15% less premium to its quota share reinsurers, the Company expects to increase its profitability by retaining more premium. The reduction in 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 June 30, 2014, 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. | |||||||||||||||||||||||||
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 ratings from rating agencies and the unsecured amounts due from the Company’s reinsurers whose aggregate balance exceeded 3% of the Company’s stockholders’ equity as of the dates presented (in thousands): | |||||||||||||||||||||||||
Ratings as of June 30, 2014 | Due from as of | ||||||||||||||||||||||||
Reinsurer | AM Best | Standard | Moody’s | June 30, | December 31, | ||||||||||||||||||||
Company | and Poor’s | Investors | 2014 | 2013 | |||||||||||||||||||||
Rating | Service, Inc. | ||||||||||||||||||||||||
Services | |||||||||||||||||||||||||
Everest Reinsurance Company | A+ | A+ | A1 | $ | 59,420 | $ | 87,789 | ||||||||||||||||||
Florida Hurricane Catastrophe Fund | n/a | n/a | n/a | — | 33,593 | ||||||||||||||||||||
Odyssey Reinsurance Company | A | A- | A3 | 131,277 | 142,190 | ||||||||||||||||||||
Total (1) | $ | 190,697 | $ | 263,572 | |||||||||||||||||||||
-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 applicable, because entity is not rated. | |||||||||||||||||||||||||
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 June 30, | |||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
Loss and Loss | Loss and Loss | ||||||||||||||||||||||||
Premiums | Premiums | Adjustment | Premiums | Premiums | Adjustment | ||||||||||||||||||||
Written | Earned | Expenses | Written | Earned | Expenses | ||||||||||||||||||||
Direct | $ | 220,009 | $ | 192,061 | $ | 46,970 | $ | 219,946 | $ | 197,302 | $ | 50,350 | |||||||||||||
Ceded | (76,483 | ) | (118,699 | ) | (19,291 | ) | (133,897 | ) | (130,435 | ) | (25,151 | ) | |||||||||||||
Net | $ | 143,526 | $ | 73,362 | $ | 27,679 | $ | 86,049 | $ | 66,867 | $ | 25,199 | |||||||||||||
Six Months Ended June 30, | |||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
Loss and Loss | Loss and Loss | ||||||||||||||||||||||||
Premiums | Premiums | Adjustment | Premiums | Premiums | Adjustment | ||||||||||||||||||||
Written | Earned | Expenses | Written | Earned | Expenses | ||||||||||||||||||||
Direct | $ | 411,926 | $ | 382,705 | $ | 97,692 | $ | 424,085 | $ | 391,470 | $ | 100,946 | |||||||||||||
Ceded | (198,132 | ) | (245,536 | ) | (43,188 | ) | (275,214 | ) | (259,194 | ) | (49,264 | ) | |||||||||||||
Net | $ | 213,794 | $ | 137,169 | $ | 54,504 | $ | 148,871 | $ | 132,276 | $ | 51,682 | |||||||||||||
The following prepaid reinsurance premiums and reinsurance recoverable and receivable are reflected in the Condensed Consolidated Balance Sheets as of the dates presented (in thousands): | |||||||||||||||||||||||||
June 30, | December 31, | ||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
Prepaid reinsurance premiums | $ | 193,811 | $ | 241,214 | |||||||||||||||||||||
Reinsurance recoverable on unpaid losses and LAE | $ | 58,705 | $ | 68,584 | |||||||||||||||||||||
Reinsurance recoverable on paid losses | 18,861 | 39,263 | |||||||||||||||||||||||
Reinsurance receivable, net | 26,352 | 203 | |||||||||||||||||||||||
Reinsurance recoverable and receivable | $ | 103,918 | $ | 108,050 | |||||||||||||||||||||
Insurance_Operations
Insurance Operations | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Insurance [Abstract] | ' | ||||||||||||||||
Insurance Operations | ' | ||||||||||||||||
5 | Insurance Operations | ||||||||||||||||
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 June 30, | Six Months Ended June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
DPAC, beginning of period | $ | 54,211 | $ | 55,391 | $ | 54,099 | $ | 54,431 | |||||||||
Capitalized Costs | 29,993 | 30,241 | 56,775 | 58,933 | |||||||||||||
Amortization of DPAC | (26,055 | ) | (26,599 | ) | (52,725 | ) | (54,331 | ) | |||||||||
DPAC, end of period | $ | 58,149 | $ | 59,033 | $ | 58,149 | $ | 59,033 | |||||||||
DRCC, beginning of period | $ | 38,318 | $ | 38,014 | $ | 38,200 | $ | 37,149 | |||||||||
Ceding Commissions Written | 10,439 | 26,222 | 32,319 | 48,534 | |||||||||||||
Earned Ceding Commissions | (18,685 | ) | (22,444 | ) | (40,447 | ) | (43,891 | ) | |||||||||
DRCC, end of period | $ | 30,072 | $ | 41,792 | $ | 30,072 | $ | 41,792 | |||||||||
DPAC (DRCC), net, beginning of period | $ | 15,893 | $ | 17,377 | $ | 15,899 | $ | 17,282 | |||||||||
Capitalized Costs, net | 19,554 | 4,019 | 24,456 | 10,399 | |||||||||||||
Amortization of DPAC (DRCC), net | (7,370 | ) | (4,155 | ) | (12,278 | ) | (10,440 | ) | |||||||||
DPAC (DRCC), net, end of period | $ | 28,077 | $ | 17,241 | $ | 28,077 | $ | 17,241 | |||||||||
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 June 30, | Six Months Ended June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Balance at beginning of period | $ | 150,557 | $ | 182,528 | $ | 159,222 | $ | 193,241 | |||||||||
Less reinsurance recoverable | (64,109 | ) | (75,680 | ) | (68,584 | ) | (81,415 | ) | |||||||||
Net balance at beginning of period | 86,448 | 106,848 | 90,638 | 111,826 | |||||||||||||
Incurred (recovered) related to: | |||||||||||||||||
Current year | 28,333 | 26,675 | 55,188 | 53,329 | |||||||||||||
Prior years | (654 | ) | (1,476 | ) | (684 | ) | (1,647 | ) | |||||||||
Total incurred | 27,679 | 25,199 | 54,504 | 51,682 | |||||||||||||
Paid related to: | |||||||||||||||||
Current year | 16,200 | 16,303 | 20,067 | 17,475 | |||||||||||||
Prior years | 12,007 | 17,304 | 39,155 | 47,593 | |||||||||||||
Total paid | 28,207 | 33,607 | 59,222 | 65,068 | |||||||||||||
Net balance at end of period | 85,920 | 98,440 | 85,920 | 98,440 | |||||||||||||
Plus reinsurance recoverable | 58,705 | 67,820 | 58,705 | 67,820 | |||||||||||||
Balance at end of period | $ | 144,625 | $ | 166,260 | $ | 144,625 | $ | 166,260 | |||||||||
Regulatory Requirements and Restrictions | |||||||||||||||||
The Insurance Entities are subject to regulations and standards of the Florida Office of Insurance Regulation. 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 regulatory 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.” However, if the dividend, together with other dividends paid within the preceding twelve months, exceeds this 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 2013 statutory net income and statutory capital and surplus levels, UPCIC has the capacity to pay ordinary dividends of $290 thousand during 2014. APPCIC does not have the capacity to pay ordinary dividends during 2014. For the six months ended June 30, 2014, no dividends were paid from UPCIC or APPCIC to UIHCF. Dividends paid to the shareholders of UIH are paid from the earnings of UIH and its non-insurance subsidiaries and not from the capital and surplus of the Insurance Entities. | |||||||||||||||||
The Florida Insurance Code requires insurance 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 capital and surplus calculated in accordance with statutory accounting principles, which differ from GAAP, and an amount representing ten percent of total liabilities for both UPCIC and APPCIC as of the dates presented (in thousands): | |||||||||||||||||
June 30, | December 31, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
Ten percent of total liabilities | |||||||||||||||||
UPCIC | $ | 48,122 | $ | 39,179 | |||||||||||||
APPCIC | $ | 696 | $ | 625 | |||||||||||||
Statutory capital and surplus | |||||||||||||||||
UPCIC | $ | 167,862 | $ | 161,803 | |||||||||||||
APPCIC | $ | 13,287 | $ | 13,708 | |||||||||||||
As of the 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 Insurance Entities are required by various state laws and regulations to maintain certain assets in depository accounts. The following table represents assets held by insurance regulators as of the dates presented (in thousands): | |||||||||||||||||
June 30, | December 31, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
Restricted cash and cash equivalents | $ | 2,635 | $ | 2,600 | |||||||||||||
Investments | $ | 3,772 | $ | 3,707 |
LongTerm_Debt
Long-Term Debt | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
Long-Term Debt | ' | ||||||||
6 | Long-Term Debt | ||||||||
Long-term debt consists of a surplus note entered into by UPCIC with carrying amounts of $18.0 million and $18.8 million as of June 30, 2014 and December 31, 2013, respectively; a term loan with carrying amounts of $13.0 million and $18.5 million as of June 30, 2014 and December 31, 2013, respectively; 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 with Deutsche Bank Trust Company Americas (“Deutsche Bank”), amended as of May 23, 2013 (“DB Loan”). The DB Loan makes available to UIH an unsecured line of credit in an aggregate amount not to exceed $10.0 million. The DB Loan contains financial covenants and as of June 30, 2014, UIH was in compliance with all such covenants. UIH had not drawn any amounts under the unsecured line of credit as of June 30, 2014. | |||||||||
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”). The Term Loan contains financial covenants and as of June 30, 2014, UIH was in compliance with all such covenants. | |||||||||
The following table provides the principal amount and unamortized original issue discount of the Term Loan as of the dates presented (in thousands): | |||||||||
June 30, | December 31, | ||||||||
2014 | 2013 | ||||||||
Principal amount | $ | 14,000 | $ | 20,000 | |||||
Less: unamortized original issue discount | (1,031 | ) | (1,510 | ) | |||||
Term Loan, net of unamortized original issue discount | $ | 12,969 | $ | 18,490 | |||||
Amortization of the original issue discount is included in interest expense, a component of general and administrative expenses, in the Condensed Consolidated Statements of Income and was $230 thousand and $101 thousand for the three months ended June 30, 2014 and 2013, respectively, and $480 thousand and $101 thousand for the six months ended June 30, 2014 and 2013, respectively. | |||||||||
Should UIH default on either the DB Loan or the Term Loan, it will be prohibited from paying dividends to its shareholders. |
Stockholders_Equity
Stockholders' Equity | 6 Months Ended | ||||||||||||
Jun. 30, 2014 | |||||||||||||
Equity [Abstract] | ' | ||||||||||||
Stockholders' Equity | ' | ||||||||||||
7 | Stockholders’ Equity | ||||||||||||
Common Stock | |||||||||||||
The following table summarizes the activity relating to shares of the Company’s common stock during the six months ended June 30, 2014 (in thousands): | |||||||||||||
Issued | Treasury | Outstanding | |||||||||||
Shares | Shares | Shares | |||||||||||
Balance, as of December 31, 2013 | 43,641 | (8,275 | ) | 35,366 | |||||||||
Conversion of preferred stock | 65 | — | 65 | ||||||||||
Shares repurchased | — | (1,672 | ) | (1,672 | ) | ||||||||
Options exercised | 1,725 | — | 1,725 | ||||||||||
Restricted stocks grants | 950 | — | 950 | ||||||||||
Shares acquired through cashless exercise (1) | — | (1,446 | ) | (1,446 | ) | ||||||||
Shares cancelled | (1,446 | ) | 1,446 | — | |||||||||
Balance, as of June 30, 2014 | 44,935 | (9,947 | ) | 34,988 | |||||||||
-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. | ||||||||||||
During the six months ended June 30, 2014, UIH entered into various repurchase agreements with Bradley I. Meier, the Company’s former Chairman, President and Chief Executive Officer, to repurchase shares of UIH’s common stock owned by Mr. Meier. UIH repurchased an aggregate of 1,225,000 shares from Mr. Meier since January 2014 at a total cost of $14.7 million. As a result of these transactions, Mr. Meier now owns less than 5 percent of UIH’s outstanding common stock and according to the terms of the right of first refusal of each of UIH and RenRe Ventures, UIH and RenRe Ventures no longer have a right of first refusal to purchase shares of UIH common stock owned by Mr. Meier. | |||||||||||||
During the six months ended June 30, 2014, 8,000 and 9,975 shares of Series M and Series A Preferred Stock, respectively, were converted into 64,938 shares of UIH’s common stock. | |||||||||||||
During the six months ended June 30, 2014, UIH repurchased an aggregate of 446,271 shares of its common stock at a total cost of $5.5 million in the open market in compliance with Rule 10b-18 under the Securities Exchange Act of 1934, as amended (“Rule 10b-18”). | |||||||||||||
In June 2014, UIH announced that its Board of Directors authorized a share repurchase program under which UIH may repurchase in the open market in compliance with Rule 10b-18 up to $10 million of its outstanding shares of common stock through August 1, 2015. UIH repurchased 38,424 shares through such repurchase program through June 30, 2014. | |||||||||||||
Dividends | |||||||||||||
On January 30, 2014, the Company declared a cash dividend of $0.10 per share on its outstanding common stock paid on March 3, 2014, to the shareholders of record at the close of business on February 19, 2014. | |||||||||||||
On April 16, 2014, the Company declared a cash dividend of $0.10 per share on its outstanding common stock paid on July 3, 2014, to the shareholders of record at the close of business on June 19, 2014. |
Related_Party_Transactions
Related Party Transactions | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Related Party Transactions [Abstract] | ' | ||||||||||||||||
Related Party Transactions | ' | ||||||||||||||||
8 | Related Party Transactions | ||||||||||||||||
Downes and Associates, a multi-line insurance adjustment corporation based in Deerfield Beach, Florida, performed 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. All amounts paid to Downes and Associates were no greater than amounts that would need to be paid to third parties on an arm’s-length basis for similar services. The Company’s agreement with Downes and Associates was terminated effective November 30, 2013 and on December 1, 2013 Dennis Downes became an employee of the Company. | |||||||||||||||||
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 related parties for the periods presented (in thousands): | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Downes and Associates | $ | — | $ | 130 | $ | — | $ | 259 | |||||||||
SPC Global RE Advisors LLC | $ | 30 | $ | — | $ | 60 | $ | — | |||||||||
There were no amounts due to SPC Global RE Advisors LLC as of June 30, 2014 and December 31, 2013, respectively. Payments due to Downes and Associates and SPC Global RE Advisors LLC were or are generally made in the month the services are provided. |
Income_Taxes
Income Taxes | 6 Months Ended | |
Jun. 30, 2014 | ||
Income Tax Disclosure [Abstract] | ' | |
Income Taxes | ' | |
9 | Income Taxes | |
During the three months ended June 30, 2014 and 2013, the Company recorded approximately $13.3 million and $12.7 million, respectively, of income taxes, which resulted in effective tax rates of 43.7% and 42.6%, respectively. During the six months ended June 30, 2014 and 2013, the Company recorded approximately $22.9 million and $20.5 million, respectively, of income taxes, which resulted in effective tax rates of 42.7% and 41.4%, respectively. The Company’s effective tax rate differs from the statutory federal income tax rate due to state income taxes and certain nondeductible items. | ||
Tax years that remain open for purposes of examination of the Company’s income tax liability due to taxing authorities, include the years ended December 31, 2012, 2011 and 2010. However, there is currently an IRS examination underway related to the loss carryback of realized losses from securities sold during 2012 applied to the 2009 tax year. |
Earnings_Per_Share
Earnings Per Share | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
Earnings Per Share | ' | ||||||||||||||||
10 | 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 | Six Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Numerator for EPS: | |||||||||||||||||
Net income | $ | 17,126 | $ | 17,029 | $ | 30,675 | $ | 28,988 | |||||||||
Less: Preferred stock dividends | (3 | ) | (5 | ) | (8 | ) | (10 | ) | |||||||||
Income available to common stockholders | $ | 17,123 | $ | 17,024 | $ | 30,667 | $ | 28,978 | |||||||||
Denominator for EPS: | |||||||||||||||||
Weighted average common shares outstanding | 33,968 | 36,378 | 33,696 | 38,138 | |||||||||||||
Plus: Assumed conversion of stock-based compensation (1) | 1,171 | 1,448 | 1,697 | 1,134 | |||||||||||||
Plus: Assumed conversion of preferred stock | 35 | 488 | 57 | 488 | |||||||||||||
Weighted average diluted common shares outstanding | 35,174 | 38,314 | 35,450 | 39,760 | |||||||||||||
Basic earnings per common share | $ | 0.5 | $ | 0.47 | $ | 0.91 | $ | 0.76 | |||||||||
Diluted earnings per common share | $ | 0.49 | $ | 0.44 | $ | 0.87 | $ | 0.73 | |||||||||
-1 | Represents the dilutive effect of unvested restricted stock and unexercised stock options. |
Other_Comprehensive_Income_Los
Other Comprehensive Income (Loss) | 6 Months Ended | ||||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||||||||||
Other Comprehensive Income (Loss) | ' | ||||||||||||||||||||||||
11 | 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 period presented (in thousands): | |||||||||||||||||||||||||
For the Three Months Ended June 30, | |||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
Pre-tax | Tax | After-tax | Pre-tax | Tax | After-tax | ||||||||||||||||||||
Net unrealized gains (losses) on investments available for sale arising during the period | $ | 3,366 | $ | 1,299 | $ | 2,067 | $ | (4,246 | ) | $ | (1,638 | ) | $ | (2,608 | ) | ||||||||||
Less: Amounts reclassified from accumulated other comprehensive income (loss) | (3,950 | ) | (1,524 | ) | (2,426 | ) | 1 | — | — | ||||||||||||||||
Net current period other comprehensive income (loss) | $ | (584 | ) | $ | (225 | ) | $ | (359 | ) | $ | (4,245 | ) | $ | (1,638 | ) | $ | (2,608 | ) | |||||||
For the Six Months Ended June 30, | |||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
Pre-tax | Tax | After-tax | Pre-tax | Tax | After-tax | ||||||||||||||||||||
Net unrealized gains (losses) on investments available for sale arising during the period | $ | 4,450 | $ | 1,717 | $ | 2,733 | $ | (4,246 | ) | $ | (1,638 | ) | $ | (2,608 | ) | ||||||||||
Less: Amounts reclassified from accumulated other comprehensive income (loss) | (4,852 | ) | (1,872 | ) | (2,980 | ) | 1 | — | — | ||||||||||||||||
Net current period other comprehensive income (loss) | $ | (402 | ) | $ | (155 | ) | $ | (247 | ) | $ | (4,245 | ) | $ | (1,638 | ) | $ | (2,608 | ) | |||||||
The following table provides the reclassifications out of accumulated other comprehensive income for the period presented (in thousands): | |||||||||||||||||||||||||
Details about Accumulated Other | Amounts Reclassified from | Affected Line Item in the Statement | |||||||||||||||||||||||
Comprehensive Income Components | Accumulated | ||||||||||||||||||||||||
Other Comprehensive Income | |||||||||||||||||||||||||
Three Months Ended June 30, | |||||||||||||||||||||||||
2014 | 2013 | Where Net income is Presented | |||||||||||||||||||||||
Unrealized gains (losses) on investments available for sale | |||||||||||||||||||||||||
$ | 3,950 | $ | (1 | ) | Net realized gains (losses) on investments | ||||||||||||||||||||
(1,524 | ) | — | Income taxes, current | ||||||||||||||||||||||
$ | 2,426 | $ | — | Net of tax | |||||||||||||||||||||
Details about Accumulated Other | Amounts Reclassified from | Affected Line Item in the Statement | |||||||||||||||||||||||
Comprehensive Income Components | Accumulated | ||||||||||||||||||||||||
Other Comprehensive Income | |||||||||||||||||||||||||
Six Months Ended June 30, | |||||||||||||||||||||||||
2014 | 2013 | Where Net income is Presented | |||||||||||||||||||||||
Unrealized gains (losses) on investments available for sale | |||||||||||||||||||||||||
$ | 4,852 | $ | (1 | ) | Net realized gains (losses) on investments | ||||||||||||||||||||
(1,872 | ) | — | Income taxes, current | ||||||||||||||||||||||
$ | 2,980 | $ | — | Net of tax | |||||||||||||||||||||
Commitments_and_Contingencies
Commitments and Contingencies | 6 Months Ended | ||
Jun. 30, 2014 | |||
Commitments And Contingencies Disclosure [Abstract] | ' | ||
Commitments and Contingencies | ' | ||
12 | Commitments and Contingencies | ||
Litigation | |||
Certain lawsuits have been filed against the Company. These lawsuits involve routine matters 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. | |||
Other | |||
In July 2013, UPCIC entered into a lease agreement (“Lease Agreement”) for an office building adjacent to its principal office in Fort Lauderdale, Florida (“Property”) and expects to use the Property for additional office and storage space. The Company took possession of the office building and began monthly rental payments in October 2013. | |||
Also in July 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 | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
Fair Value Measurements | ' | ||||||||||||||||
13 | 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. | |||||||||||||||||
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. | |||||||||||||||||
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. | |||||||||||||||||
Redeemable Preferred Stock: Comprise preferred stock securities that are redeemable. The primary inputs to the valuation include quoted prices for identical or similar assets in markets that are not 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 the placement of the asset or liability 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 dates presented (in thousands): | |||||||||||||||||
Fair Value Measurements | |||||||||||||||||
30-Jun-14 | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Cash and cash equivalents | $ | 201,357 | $ | — | $ | — | $ | 201,357 | |||||||||
Restricted cash and cash equivalents | 2,635 | — | — | 2,635 | |||||||||||||
Fixed maturities: | |||||||||||||||||
U.S. government obligations and agencies | — | 116,422 | — | 116,422 | |||||||||||||
Corporate bonds | — | 106,745 | — | 106,745 | |||||||||||||
Mortgage-backed and asset-backed securities | — | 94,908 | — | 94,908 | |||||||||||||
Redeemable preferred stock | — | 5,070 | — | 5,070 | |||||||||||||
Equity securities: | |||||||||||||||||
Common stock | 590 | — | — | 590 | |||||||||||||
Mutual funds | 11,830 | — | — | 11,830 | |||||||||||||
Total investments | $ | 12,420 | $ | 323,145 | $ | — | $ | 335,565 | |||||||||
Total assets accounted for at fair value | $ | 216,412 | $ | 323,145 | $ | — | $ | 539,557 | |||||||||
Fair Value Measurements | |||||||||||||||||
31-Dec-13 | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Cash and cash equivalents | $ | 117,275 | $ | — | $ | — | $ | 117,275 | |||||||||
Restricted cash and cash equivalents | 2,600 | — | — | 2,600 | |||||||||||||
Fixed maturities: | |||||||||||||||||
U.S. government obligations and agencies | — | 104,215 | — | 104,215 | |||||||||||||
Corporate bonds | — | 94,203 | — | 94,203 | |||||||||||||
Mortgage-backed and asset-backed securities | — | 91,000 | — | 91,000 | |||||||||||||
Equity securities: | |||||||||||||||||
Common stock | 9,295 | — | — | 9,295 | |||||||||||||
Mutual funds | 55,727 | — | — | 55,727 | |||||||||||||
Total investments | $ | 65,022 | $ | 289,418 | $ | — | $ | 354,440 | |||||||||
Total assets accounted for at fair value | $ | 184,897 | $ | 289,418 | $ | — | $ | 474,315 | |||||||||
The Company utilizes third-party independent pricing services that provide a price quote for each fixed maturity and equity security. 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 or equity securities 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 as of the dates presented (in thousands): | |||||||||||||||||
June 30, 2014 | December 31, 2013 | ||||||||||||||||
Carrying value | (Level 3) | Carrying value | (Level 3) | ||||||||||||||
Estimated Fair | Estimated Fair | ||||||||||||||||
Value | Value | ||||||||||||||||
Liabilities (debt): | |||||||||||||||||
Surplus note | $ | 18,015 | $ | 15,289 | $ | 18,750 | $ | 15,900 | |||||||||
Term loan | $ | 12,969 | $ | 12,969 | $ | 18,490 | $ | 18,490 | |||||||||
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 holder. The State Board of Administration of Florida (“SBA”) is the holder 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 | 6 Months Ended | |
Jun. 30, 2014 | ||
Subsequent Events [Abstract] | ' | |
Subsequent Events | ' | |
14 | 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 June 30, 2014. |
Nature_of_Operations_and_Basis1
Nature of Operations and Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2014 | |
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 eight states as of June 30, 2014, 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. | |
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, 2013, filed with the SEC on March 3, 2014. The condensed consolidated balance sheet at December 31, 2013, 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. | |
To conform to current period presentation, certain amounts in the prior periods’ consolidated financial statements and notes have been reclassified. Such reclassifications were of an immaterial amount and had no effect on net income or stockholders’ equity. | |
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. | |
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. The Company adopted this guidance effective January 1, 2014. The adoption did not have an impact on the presentation of the Company’s financial statements and notes herein. | |
In June 2011, the FASB updated its guidance to the Comprehensive Income Topic 220 of the FASB Accounting Standards Codification 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 results in additional disclosures 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. |
Investments_Tables
Investments (Tables) | 6 Months Ended | ||||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||||
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 dates presented (in thousands): | |||||||||||||||||||||||||
June 30, 2014 | December 31, 2013 | ||||||||||||||||||||||||
Cost or | Cost or | ||||||||||||||||||||||||
Amortized | Carrying | Amortized | Carrying | ||||||||||||||||||||||
Cost | Fair Value | Value | Cost | Fair Value | Value | ||||||||||||||||||||
Cash and cash equivalents (1) | $ | 201,357 | $ | 201,357 | $ | 201,357 | $ | 117,275 | $ | 117,275 | $ | 117,275 | |||||||||||||
Restricted cash and cash equivalents | 2,635 | 2,635 | 2,635 | 2,600 | 2,600 | 2,600 | |||||||||||||||||||
Fixed maturities: | |||||||||||||||||||||||||
U.S. government obligations and agencies | 116,931 | 116,422 | 116,422 | 105,229 | 104,215 | 104,215 | |||||||||||||||||||
Corporate bonds | 106,450 | 106,745 | 106,745 | 94,708 | 94,203 | 94,203 | |||||||||||||||||||
Mortgage-backed and asset-backed securities | 95,054 | 94,908 | 94,908 | 91,502 | 91,000 | 91,000 | |||||||||||||||||||
Redeemable preferred stock | 4,990 | 5,070 | 5,070 | — | — | — | |||||||||||||||||||
Equity securities: | |||||||||||||||||||||||||
Common stock | 652 | 590 | 590 | 8,500 | 9,295 | 9,295 | |||||||||||||||||||
Mutual funds | 12,502 | 11,830 | 11,830 | 55,113 | 55,727 | 55,727 | |||||||||||||||||||
Total investments | 336,579 | 335,565 | 335,565 | 355,052 | 354,440 | 354,440 | |||||||||||||||||||
Total | $ | 540,571 | $ | 539,557 | $ | 539,557 | $ | 474,927 | $ | 474,315 | $ | 474,315 | |||||||||||||
-1 | Cash and cash equivalents include short-term debt securities consisting of direct obligations of the U.S. Treasury and/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. | ||||||||||||||||||||||||
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 | Six Months Ended | ||||||||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||
Cash and cash equivalents (1) | $ | 9 | $ | 122 | $ | 21 | $ | 242 | |||||||||||||||||
Fixed maturities | 783 | (30 | ) | 1,511 | (30 | ) | |||||||||||||||||||
Equity securities | 152 | 279 | 454 | 367 | |||||||||||||||||||||
Total investment income | 944 | 371 | 1,986 | 579 | |||||||||||||||||||||
Less investment expenses | (532 | ) | (234 | ) | (1,056 | ) | (430 | ) | |||||||||||||||||
Net investment (expense) income | $ | 412 | $ | 137 | $ | 930 | $ | 149 | |||||||||||||||||
-1 | Includes interest earned on restricted cash and cash equivalents. | ||||||||||||||||||||||||
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 dates presented (in thousands): | |||||||||||||||||||||||||
30-Jun-14 | |||||||||||||||||||||||||
Cost or | Gross | Gross | Fair Value | ||||||||||||||||||||||
Amortized | Unrealized | Unrealized | |||||||||||||||||||||||
Cost | Gains | Losses | |||||||||||||||||||||||
Fixed Maturities: | |||||||||||||||||||||||||
U.S. government obligations and agencies | $ | 116,931 | $ | 77 | $ | (586 | ) | $ | 116,422 | ||||||||||||||||
Corporate bonds | 106,450 | 443 | (148 | ) | 106,745 | ||||||||||||||||||||
Mortgage-backed and asset-backed securities | 95,054 | 204 | (350 | ) | 94,908 | ||||||||||||||||||||
Redeemable preferred stock | 4,990 | 82 | (2 | ) | 5,070 | ||||||||||||||||||||
Equity Securities: | |||||||||||||||||||||||||
Common stock | 652 | 3 | (65 | ) | 590 | ||||||||||||||||||||
Mutual funds | 12,502 | 19 | (691 | ) | 11,830 | ||||||||||||||||||||
Total | $ | 336,579 | $ | 828 | $ | (1,842 | ) | $ | 335,565 | ||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
Cost or | Gross | Gross | Fair Value | ||||||||||||||||||||||
Amortized | Unrealized | Unrealized | |||||||||||||||||||||||
Cost | Gains | Losses | |||||||||||||||||||||||
Fixed Maturities: | |||||||||||||||||||||||||
U.S. government obligations and agencies | $ | 105,229 | $ | 19 | $ | (1,033 | ) | $ | 104,215 | ||||||||||||||||
Corporate bonds | 94,708 | 265 | (770 | ) | 94,203 | ||||||||||||||||||||
Mortgage-backed and asset-backed securities | 91,502 | 75 | (577 | ) | 91,000 | ||||||||||||||||||||
Equity Securities: | |||||||||||||||||||||||||
Common stock | 8,500 | 916 | (121 | ) | 9,295 | ||||||||||||||||||||
Mutual funds | 55,113 | 2,266 | (1,652 | ) | 55,727 | ||||||||||||||||||||
Total | $ | 355,052 | $ | 3,541 | $ | (4,153 | ) | $ | 354,440 | ||||||||||||||||
Schedule of Credit Quality of Fixed Maturities | ' | ||||||||||||||||||||||||
The following table provides the credit quality of fixed maturities as of the dates presented (in thousands): | |||||||||||||||||||||||||
June 30, 2014 | |||||||||||||||||||||||||
Standard and Poor’s | Fair Value | % of Total | |||||||||||||||||||||||
Rating Services | Fair Value | ||||||||||||||||||||||||
AAA | $ | 30,547 | 9.5 | % | |||||||||||||||||||||
AA | 191,775 | 59.3 | % | ||||||||||||||||||||||
A | 49,930 | 15.5 | % | ||||||||||||||||||||||
BBB | 41,812 | 12.9 | % | ||||||||||||||||||||||
BB and Below | 1,504 | 0.5 | % | ||||||||||||||||||||||
No Rating Available | 7,577 | 2.3 | % | ||||||||||||||||||||||
Total | $ | 323,145 | 100 | % | |||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||
Standard and Poor’s | Fair Value | % of Total | |||||||||||||||||||||||
Rating Services | Fair Value | ||||||||||||||||||||||||
AAA | $ | 82,889 | 28.6 | % | |||||||||||||||||||||
AA | 120,976 | 41.8 | % | ||||||||||||||||||||||
A | 46,689 | 16.1 | % | ||||||||||||||||||||||
BBB | 38,114 | 13.2 | % | ||||||||||||||||||||||
No Rating Available | 750 | 0.3 | % | ||||||||||||||||||||||
Total | $ | 289,418 | 100 | % | |||||||||||||||||||||
Schedule of Amortized Cost and Fair Value on Mortgage-Backed and Asset-Backed Securities | ' | ||||||||||||||||||||||||
The following table summarizes the cost or amortized cost and fair value of mortgage-backed and asset-backed securities as of the dates presented (in thousands): | |||||||||||||||||||||||||
June 30, 2014 | December 31, 2013 | ||||||||||||||||||||||||
Cost or | Cost or | ||||||||||||||||||||||||
Amortized | Amortized | ||||||||||||||||||||||||
Cost | Fair Value | Cost | Fair Value | ||||||||||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||||||
Agency | $ | 57,935 | $ | 57,737 | $ | 64,028 | $ | 63,547 | |||||||||||||||||
Non-agency | 2,184 | 2,169 | — | — | |||||||||||||||||||||
Asset-backed securities: | |||||||||||||||||||||||||
Auto loan receivables | 16,858 | 16,907 | 14,816 | 14,841 | |||||||||||||||||||||
Credit card receivables | 13,478 | 13,479 | 11,478 | 11,425 | |||||||||||||||||||||
Other receivables | 4,599 | 4,616 | 1,180 | 1,187 | |||||||||||||||||||||
Total | $ | 95,054 | $ | 94,908 | $ | 91,502 | $ | 91,000 | |||||||||||||||||
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 the dates presented (in thousands): | |||||||||||||||||||||||||
June 30, 2014 | |||||||||||||||||||||||||
Less Than 12 Months | 12 Months or Longer | ||||||||||||||||||||||||
Number of | Fair Value | Unrealized | Number of | Fair Value | Unrealized | ||||||||||||||||||||
Issues | Losses | Issues | Losses | ||||||||||||||||||||||
Fixed maturities: | |||||||||||||||||||||||||
U.S. government obligations and agencies | 2 | $ | 17,604 | $ | (79 | ) | 4 | $ | 34,152 | $ | (507 | ) | |||||||||||||
Corporate bonds | 9 | 5,954 | (28 | ) | 14 | 17,905 | (120 | ) | |||||||||||||||||
Mortgage-backed and asset-backed securities | 8 | 27,200 | (106 | ) | 5 | 19,175 | (244 | ) | |||||||||||||||||
Redeemable preferred stock | 9 | 1,080 | (2 | ) | — | — | — | ||||||||||||||||||
Equity securities: | |||||||||||||||||||||||||
Common stock | 5 | 228 | (23 | ) | 5 | 282 | (42 | ) | |||||||||||||||||
Mutual funds | 1 | 1,159 | (76 | ) | 1 | 10,071 | (615 | ) | |||||||||||||||||
Total | 34 | $ | 53,225 | $ | (314 | ) | 29 | $ | 81,585 | $ | (1,528 | ) | |||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
Less Than 12 Months | 12 Months or Longer | ||||||||||||||||||||||||
Number of | Fair Value | Unrealized | Number of | Fair Value | Unrealized | ||||||||||||||||||||
Issues | Losses | Issues | Losses | ||||||||||||||||||||||
Fixed maturities: | |||||||||||||||||||||||||
U.S. government obligations and agencies | 6 | $ | 71,042 | $ | (1,033 | ) | — | $ | — | $ | — | ||||||||||||||
Corporate bonds | 55 | 65,926 | (770 | ) | — | — | — | ||||||||||||||||||
Mortgage-backed and asset-backed securities | 16 | 67,110 | (577 | ) | — | — | — | ||||||||||||||||||
Equity securities: | |||||||||||||||||||||||||
Common stock | 13 | 3,517 | (121 | ) | — | — | — | ||||||||||||||||||
Mutual funds | 5 | 19,646 | (1,652 | ) | — | — | — | ||||||||||||||||||
Total | 95 | $ | 227,241 | $ | (4,153 | ) | — | $ | — | $ | — | ||||||||||||||
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 the date presented (in thousands): | |||||||||||||||||||||||||
June 30, 2014 | |||||||||||||||||||||||||
Amortized | Fair Value | ||||||||||||||||||||||||
Cost | |||||||||||||||||||||||||
Due in one year or less | $ | 52,364 | $ | 52,346 | |||||||||||||||||||||
Due after one year through five years | 165,335 | 165,278 | |||||||||||||||||||||||
Due after five years through ten years | 5,094 | 4,970 | |||||||||||||||||||||||
Due after ten years | 2,636 | 2,678 | |||||||||||||||||||||||
Mortgage-backed and asset-backed securities | 95,054 | 94,908 | |||||||||||||||||||||||
Perpetual maturity securities | 2,942 | 2,965 | |||||||||||||||||||||||
Total | $ | 323,425 | $ | 323,145 | |||||||||||||||||||||
Summary of Securities Available for Sale | ' | ||||||||||||||||||||||||
The following table provides certain information related to securities available for sale during the period presented (in thousands): | |||||||||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||
Sales proceeds (fair value) | $ | 58,347 | $ | 14 | $ | 72,788 | $ | 14 | |||||||||||||||||
Gross realized gains | $ | 4,189 | $ | — | $ | 5,188 | $ | — | |||||||||||||||||
Gross realized losses | $ | (239 | ) | $ | (1 | ) | $ | (336 | ) | $ | (1 | ) | |||||||||||||
Other than temporary losses | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||
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 period presented by type of instrument and by line item in the Condensed Consolidated Statements of Income (in thousands): | |||||||||||||||||||||||||
Six Months | |||||||||||||||||||||||||
Ended | |||||||||||||||||||||||||
June 30, | |||||||||||||||||||||||||
2013 | |||||||||||||||||||||||||
Realized gains (losses) on investments: | |||||||||||||||||||||||||
Equity securities | $ | (15,969 | ) | ||||||||||||||||||||||
Derivatives (non-hedging instruments) (1) | (68 | ) | |||||||||||||||||||||||
Total realized gains (losses) on trading portfolio | (16,037 | ) | |||||||||||||||||||||||
Change in unrealized gains (losses) on investments: | |||||||||||||||||||||||||
Fixed maturities | 13 | ||||||||||||||||||||||||
Equity securities | 7,758 | ||||||||||||||||||||||||
Derivatives (non-hedging instruments) (1) | 89 | ||||||||||||||||||||||||
Other | 14 | ||||||||||||||||||||||||
Total change in unrealized gains (losses) on trading portfolio | 7,874 | ||||||||||||||||||||||||
Net gains (losses) recognized on trading portfolio | $ | (8,163 | ) | ||||||||||||||||||||||
-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. |
Reinsurance_Tables
Reinsurance (Tables) | 6 Months Ended | ||||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||||
Insurance [Abstract] | ' | ||||||||||||||||||||||||
Current Ratings from Rating Agencies and Unsecured Net Amounts Due from Reinsurers Whose Aggregate Balance Exceeded 3% of Stockholders' Equity | ' | ||||||||||||||||||||||||
The following table presents ratings from rating agencies and the unsecured amounts due from the Company’s reinsurers whose aggregate balance exceeded 3% of the Company’s stockholders’ equity as of the dates presented (in thousands): | |||||||||||||||||||||||||
Ratings as of June 30, 2014 | Due from as of | ||||||||||||||||||||||||
Reinsurer | AM Best | Standard | Moody’s | June 30, | December 31, | ||||||||||||||||||||
Company | and Poor’s | Investors | 2014 | 2013 | |||||||||||||||||||||
Rating | Service, Inc. | ||||||||||||||||||||||||
Services | |||||||||||||||||||||||||
Everest Reinsurance Company | A+ | A+ | A1 | $ | 59,420 | $ | 87,789 | ||||||||||||||||||
Florida Hurricane Catastrophe Fund | n/a | n/a | n/a | — | 33,593 | ||||||||||||||||||||
Odyssey Reinsurance Company | A | A- | A3 | 131,277 | 142,190 | ||||||||||||||||||||
Total (1) | $ | 190,697 | $ | 263,572 | |||||||||||||||||||||
-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 applicable, because entity is not rated. | |||||||||||||||||||||||||
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 June 30, | |||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
Loss and Loss | Loss and Loss | ||||||||||||||||||||||||
Premiums | Premiums | Adjustment | Premiums | Premiums | Adjustment | ||||||||||||||||||||
Written | Earned | Expenses | Written | Earned | Expenses | ||||||||||||||||||||
Direct | $ | 220,009 | $ | 192,061 | $ | 46,970 | $ | 219,946 | $ | 197,302 | $ | 50,350 | |||||||||||||
Ceded | (76,483 | ) | (118,699 | ) | (19,291 | ) | (133,897 | ) | (130,435 | ) | (25,151 | ) | |||||||||||||
Net | $ | 143,526 | $ | 73,362 | $ | 27,679 | $ | 86,049 | $ | 66,867 | $ | 25,199 | |||||||||||||
Six Months Ended June 30, | |||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
Loss and Loss | Loss and Loss | ||||||||||||||||||||||||
Premiums | Premiums | Adjustment | Premiums | Premiums | Adjustment | ||||||||||||||||||||
Written | Earned | Expenses | Written | Earned | Expenses | ||||||||||||||||||||
Direct | $ | 411,926 | $ | 382,705 | $ | 97,692 | $ | 424,085 | $ | 391,470 | $ | 100,946 | |||||||||||||
Ceded | (198,132 | ) | (245,536 | ) | (43,188 | ) | (275,214 | ) | (259,194 | ) | (49,264 | ) | |||||||||||||
Net | $ | 213,794 | $ | 137,169 | $ | 54,504 | $ | 148,871 | $ | 132,276 | $ | 51,682 | |||||||||||||
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 dates presented (in thousands): | |||||||||||||||||||||||||
June 30, | December 31, | ||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
Prepaid reinsurance premiums | $ | 193,811 | $ | 241,214 | |||||||||||||||||||||
Reinsurance recoverable on unpaid losses and LAE | $ | 58,705 | $ | 68,584 | |||||||||||||||||||||
Reinsurance recoverable on paid losses | 18,861 | 39,263 | |||||||||||||||||||||||
Reinsurance receivable, net | 26,352 | 203 | |||||||||||||||||||||||
Reinsurance recoverable and receivable | $ | 103,918 | $ | 108,050 | |||||||||||||||||||||
Insurance_Operations_Tables
Insurance Operations (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Insurance [Abstract] | ' | ||||||||||||||||
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 June 30, | Six Months Ended June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
DPAC, beginning of period | $ | 54,211 | $ | 55,391 | $ | 54,099 | $ | 54,431 | |||||||||
Capitalized Costs | 29,993 | 30,241 | 56,775 | 58,933 | |||||||||||||
Amortization of DPAC | (26,055 | ) | (26,599 | ) | (52,725 | ) | (54,331 | ) | |||||||||
DPAC, end of period | $ | 58,149 | $ | 59,033 | $ | 58,149 | $ | 59,033 | |||||||||
DRCC, beginning of period | $ | 38,318 | $ | 38,014 | $ | 38,200 | $ | 37,149 | |||||||||
Ceding Commissions Written | 10,439 | 26,222 | 32,319 | 48,534 | |||||||||||||
Earned Ceding Commissions | (18,685 | ) | (22,444 | ) | (40,447 | ) | (43,891 | ) | |||||||||
DRCC, end of period | $ | 30,072 | $ | 41,792 | $ | 30,072 | $ | 41,792 | |||||||||
DPAC (DRCC), net, beginning of period | $ | 15,893 | $ | 17,377 | $ | 15,899 | $ | 17,282 | |||||||||
Capitalized Costs, net | 19,554 | 4,019 | 24,456 | 10,399 | |||||||||||||
Amortization of DPAC (DRCC), net | (7,370 | ) | (4,155 | ) | (12,278 | ) | (10,440 | ) | |||||||||
DPAC (DRCC), net, end of period | $ | 28,077 | $ | 17,241 | $ | 28,077 | $ | 17,241 | |||||||||
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 June 30, | Six Months Ended June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Balance at beginning of period | $ | 150,557 | $ | 182,528 | $ | 159,222 | $ | 193,241 | |||||||||
Less reinsurance recoverable | (64,109 | ) | (75,680 | ) | (68,584 | ) | (81,415 | ) | |||||||||
Net balance at beginning of period | 86,448 | 106,848 | 90,638 | 111,826 | |||||||||||||
Incurred (recovered) related to: | |||||||||||||||||
Current year | 28,333 | 26,675 | 55,188 | 53,329 | |||||||||||||
Prior years | (654 | ) | (1,476 | ) | (684 | ) | (1,647 | ) | |||||||||
Total incurred | 27,679 | 25,199 | 54,504 | 51,682 | |||||||||||||
Paid related to: | |||||||||||||||||
Current year | 16,200 | 16,303 | 20,067 | 17,475 | |||||||||||||
Prior years | 12,007 | 17,304 | 39,155 | 47,593 | |||||||||||||
Total paid | 28,207 | 33,607 | 59,222 | 65,068 | |||||||||||||
Net balance at end of period | 85,920 | 98,440 | 85,920 | 98,440 | |||||||||||||
Plus reinsurance recoverable | 58,705 | 67,820 | 58,705 | 67,820 | |||||||||||||
Balance at end of period | $ | 144,625 | $ | 166,260 | $ | 144,625 | $ | 166,260 | |||||||||
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 capital and surplus calculated in accordance with statutory accounting principles, which differ from GAAP, and an amount representing ten percent of total liabilities for both UPCIC and APPCIC as of the dates presented (in thousands): | |||||||||||||||||
June 30, | December 31, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
Ten percent of total liabilities | |||||||||||||||||
UPCIC | $ | 48,122 | $ | 39,179 | |||||||||||||
APPCIC | $ | 696 | $ | 625 | |||||||||||||
Statutory capital and surplus | |||||||||||||||||
UPCIC | $ | 167,862 | $ | 161,803 | |||||||||||||
APPCIC | $ | 13,287 | $ | 13,708 | |||||||||||||
Assets Held by Insurance Regulators | ' | ||||||||||||||||
The following table represents assets held by insurance regulators as of the dates presented (in thousands): | |||||||||||||||||
June 30, | December 31, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
Restricted cash and cash equivalents | $ | 2,635 | $ | 2,600 | |||||||||||||
Investments | $ | 3,772 | $ | 3,707 | |||||||||||||
LongTerm_Debt_Tables
Long-Term Debt (Tables) | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
Principal Amount and Unamortized Discount | ' | ||||||||
The following table provides the principal amount and unamortized original issue discount of the Term Loan as of the dates presented (in thousands): | |||||||||
June 30, 2014 | December 31, 2013 | ||||||||
Principal amount | $ | 14,000 | $ | 20,000 | |||||
Less: unamortized original issue discount | (1,031 | ) | (1,510 | ) | |||||
Term Loan, net of unamortized original issue discount | $ | 12,969 | $ | 18,490 | |||||
Stockholders_Equity_Tables
Stockholders' Equity (Tables) | 6 Months Ended | ||||||||||||
Jun. 30, 2014 | |||||||||||||
Equity [Abstract] | ' | ||||||||||||
Activity Relating to Common Shares | ' | ||||||||||||
The following table summarizes the activity relating to shares of the Company’s common stock during the six months ended June 30, 2014 (in thousands): | |||||||||||||
Issued | Treasury | Outstanding | |||||||||||
Shares | Shares | Shares | |||||||||||
Balance, as of December 31, 2013 | 43,641 | (8,275 | ) | 35,366 | |||||||||
Conversion of preferred stock | 65 | — | 65 | ||||||||||
Shares repurchased | — | (1,672 | ) | (1,672 | ) | ||||||||
Options exercised | 1,725 | — | 1,725 | ||||||||||
Restricted stocks grants | 950 | — | 950 | ||||||||||
Shares acquired through cashless exercise (1) | — | (1,446 | ) | (1,446 | ) | ||||||||
Shares cancelled | (1,446 | ) | 1,446 | — | |||||||||
Balance, as of June 30, 2014 | 44,935 | (9,947 | ) | 34,988 | |||||||||
-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) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Related Party Transactions [Abstract] | ' | ||||||||||||||||
Payments Made by Company to Related Parties | ' | ||||||||||||||||
The following table provides payments made by the Company to Downes and Associates and SPC Global RE Advisors LLC for the periods presented (in thousands): | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Downes and Associates | $ | — | $ | 130 | $ | — | $ | 259 | |||||||||
SPC Global RE Advisors LLC | $ | 30 | $ | — | $ | 60 | $ | — |
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
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 | Six Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Numerator for EPS: | |||||||||||||||||
Net income | $ | 17,126 | $ | 17,029 | $ | 30,675 | $ | 28,988 | |||||||||
Less: Preferred stock dividends | (3 | ) | (5 | ) | (8 | ) | (10 | ) | |||||||||
Income available to common stockholders | $ | 17,123 | $ | 17,024 | $ | 30,667 | $ | 28,978 | |||||||||
Denominator for EPS: | |||||||||||||||||
Weighted average common shares outstanding | 33,968 | 36,378 | 33,696 | 38,138 | |||||||||||||
Plus: Assumed conversion of stock-based compensation (1) | 1,171 | 1,448 | 1,697 | 1,134 | |||||||||||||
Plus: Assumed conversion of preferred stock | 35 | 488 | 57 | 488 | |||||||||||||
Weighted average diluted common shares outstanding | 35,174 | 38,314 | 35,450 | 39,760 | |||||||||||||
Basic earnings per common share | $ | 0.5 | $ | 0.47 | $ | 0.91 | $ | 0.76 | |||||||||
Diluted earnings per common share | $ | 0.49 | $ | 0.44 | $ | 0.87 | $ | 0.73 | |||||||||
-1 | Represents the dilutive effect of unvested restricted stock and unexercised stock options. |
Other_Comprehensive_Income_Los1
Other Comprehensive Income (Loss) (Tables) | 6 Months Ended | ||||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||||
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 period presented (in thousands): | |||||||||||||||||||||||||
For the Three Months Ended June 30, | |||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
Pre-tax | Tax | After-tax | Pre-tax | Tax | After-tax | ||||||||||||||||||||
Net unrealized gains (losses) on investments available for sale arising during the period | $ | 3,366 | $ | 1,299 | $ | 2,067 | $ | (4,246 | ) | $ | (1,638 | ) | $ | (2,608 | ) | ||||||||||
Less: Amounts reclassified from accumulated other comprehensive income (loss) | (3,950 | ) | (1,524 | ) | (2,426 | ) | 1 | — | — | ||||||||||||||||
Net current period other comprehensive income (loss) | $ | (584 | ) | $ | (225 | ) | $ | (359 | ) | $ | (4,245 | ) | $ | (1,638 | ) | $ | (2,608 | ) | |||||||
For the Six Months Ended June 30, | |||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
Pre-tax | Tax | After-tax | Pre-tax | Tax | After-tax | ||||||||||||||||||||
Net unrealized gains (losses) on investments available for sale arising during the period | $ | 4,450 | $ | 1,717 | $ | 2,733 | $ | (4,246 | ) | $ | (1,638 | ) | $ | (2,608 | ) | ||||||||||
Less: Amounts reclassified from accumulated other comprehensive income (loss) | (4,852 | ) | (1,872 | ) | (2,980 | ) | 1 | — | — | ||||||||||||||||
Net current period other comprehensive income (loss) | $ | (402 | ) | $ | (155 | ) | $ | (247 | ) | $ | (4,245 | ) | $ | (1,638 | ) | $ | (2,608 | ) | |||||||
Reclassifications Out of Accumulated Other Comprehensive Income | ' | ||||||||||||||||||||||||
The following table provides the reclassifications out of accumulated other comprehensive income for the period presented (in thousands): | |||||||||||||||||||||||||
Details about Accumulated Other | Amounts Reclassified from | Affected Line Item in the Statement | |||||||||||||||||||||||
Comprehensive Income Components | Accumulated | ||||||||||||||||||||||||
Other Comprehensive Income | |||||||||||||||||||||||||
Three Months Ended June 30, | |||||||||||||||||||||||||
2014 | 2013 | Where Net income is Presented | |||||||||||||||||||||||
Unrealized gains (losses) on investments available for sale | |||||||||||||||||||||||||
$ | 3,950 | $ | (1 | ) | Net realized gains (losses) on investments | ||||||||||||||||||||
(1,524 | ) | — | Income taxes, current | ||||||||||||||||||||||
$ | 2,426 | $ | — | Net of tax | |||||||||||||||||||||
Details about Accumulated Other | Amounts Reclassified from | Affected Line Item in the Statement | |||||||||||||||||||||||
Comprehensive Income Components | Accumulated | ||||||||||||||||||||||||
Other Comprehensive Income | |||||||||||||||||||||||||
Six Months Ended June 30, | |||||||||||||||||||||||||
2014 | 2013 | Where Net income is Presented | |||||||||||||||||||||||
Unrealized gains (losses) on investments available for sale | |||||||||||||||||||||||||
$ | 4,852 | $ | (1 | ) | Net realized gains (losses) on investments | ||||||||||||||||||||
(1,872 | ) | — | Income taxes, current | ||||||||||||||||||||||
$ | 2,980 | $ | — | Net of tax | |||||||||||||||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
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 dates presented (in thousands): | |||||||||||||||||
Fair Value Measurements | |||||||||||||||||
30-Jun-14 | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Cash and cash equivalents | $ | 201,357 | $ | — | $ | — | $ | 201,357 | |||||||||
Restricted cash and cash equivalents | 2,635 | — | — | 2,635 | |||||||||||||
Fixed maturities: | |||||||||||||||||
U.S. government obligations and agencies | — | 116,422 | — | 116,422 | |||||||||||||
Corporate bonds | — | 106,745 | — | 106,745 | |||||||||||||
Mortgage-backed and asset-backed securities | — | 94,908 | — | 94,908 | |||||||||||||
Redeemable preferred stock | — | 5,070 | — | 5,070 | |||||||||||||
Equity securities: | |||||||||||||||||
Common stock | 590 | — | — | 590 | |||||||||||||
Mutual funds | 11,830 | — | — | 11,830 | |||||||||||||
Total investments | $ | 12,420 | $ | 323,145 | $ | — | $ | 335,565 | |||||||||
Total assets accounted for at fair value | $ | 216,412 | $ | 323,145 | $ | — | $ | 539,557 | |||||||||
Fair Value Measurements | |||||||||||||||||
31-Dec-13 | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Cash and cash equivalents | $ | 117,275 | $ | — | $ | — | $ | 117,275 | |||||||||
Restricted cash and cash equivalents | 2,600 | — | — | 2,600 | |||||||||||||
Fixed maturities: | |||||||||||||||||
U.S. government obligations and agencies | — | 104,215 | — | 104,215 | |||||||||||||
Corporate bonds | — | 94,203 | — | 94,203 | |||||||||||||
Mortgage-backed and asset-backed securities | — | 91,000 | — | 91,000 | |||||||||||||
Equity securities: | |||||||||||||||||
Common stock | 9,295 | — | — | 9,295 | |||||||||||||
Mutual funds | 55,727 | — | — | 55,727 | |||||||||||||
Total investments | $ | 65,022 | $ | 289,418 | $ | — | $ | 354,440 | |||||||||
Total assets accounted for at fair value | $ | 184,897 | $ | 289,418 | $ | — | $ | 474,315 | |||||||||
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 as of the dates presented (in thousands): | |||||||||||||||||
June 30, 2014 | December 31, 2013 | ||||||||||||||||
Carrying value | (Level 3) | Carrying value | (Level 3) | ||||||||||||||
Estimated Fair | Estimated Fair | ||||||||||||||||
Value | Value | ||||||||||||||||
Liabilities (debt): | |||||||||||||||||
Surplus note | $ | 18,015 | $ | 15,289 | $ | 18,750 | $ | 15,900 | |||||||||
Term loan | $ | 12,969 | $ | 12,969 | $ | 18,490 | $ | 18,490 |
Nature_of_Operations_and_Basis2
Nature of Operations and Basis of Presentation - Additional Information (Detail) | Jun. 30, 2014 |
State | |
Accounting Policies [Abstract] | ' |
Number of states | 8 |
Investments_Investment_Holding
Investments - Investment Holdings by Type of Instrument (Detail) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Investment Holdings [Line Items] | ' | ' |
Investment Owned, at Cost or Amortized Cost | $540,571 | $474,927 |
Investment Owned, at Fair Value | 539,557 | 474,315 |
Investment Owned, at Carrying Value | 539,557 | 474,315 |
Cash and Cash Equivalents [Member] | ' | ' |
Investment Holdings [Line Items] | ' | ' |
Investment Owned, at Cost or Amortized Cost | 201,357 | 117,275 |
Investment Owned, at Fair Value | 201,357 | 117,275 |
Investment Owned, at Carrying Value | 201,357 | 117,275 |
Restricted Cash and Cash Equivalents [Member] | ' | ' |
Investment Holdings [Line Items] | ' | ' |
Investment Owned, at Cost or Amortized Cost | 2,635 | 2,600 |
Investment Owned, at Fair Value | 2,635 | 2,600 |
Investment Owned, at Carrying Value | 2,635 | 2,600 |
U.S. Government Obligations and Agencies [Member] | ' | ' |
Investment Holdings [Line Items] | ' | ' |
Investment Owned, at Cost or Amortized Cost | 116,931 | 105,229 |
Investment Owned, at Fair Value | 116,422 | 104,215 |
Investment Owned, at Carrying Value | 116,422 | 104,215 |
Corporate Bonds [Member] | ' | ' |
Investment Holdings [Line Items] | ' | ' |
Investment Owned, at Cost or Amortized Cost | 106,450 | 94,708 |
Investment Owned, at Fair Value | 106,745 | 94,203 |
Investment Owned, at Carrying Value | 106,745 | 94,203 |
Mortgage-Backed and Asset-Backed Securities [Member] | ' | ' |
Investment Holdings [Line Items] | ' | ' |
Investment Owned, at Cost or Amortized Cost | 95,054 | 91,502 |
Investment Owned, at Fair Value | 94,908 | 91,000 |
Investment Owned, at Carrying Value | 94,908 | 91,000 |
Redeemable Preferred Stock [Member] | ' | ' |
Investment Holdings [Line Items] | ' | ' |
Investment Owned, at Cost or Amortized Cost | 4,990 | ' |
Investment Owned, at Fair Value | 5,070 | ' |
Investment Owned, at Carrying Value | 5,070 | ' |
Common Stock [Member] | ' | ' |
Investment Holdings [Line Items] | ' | ' |
Investment Owned, at Cost or Amortized Cost | 652 | 8,500 |
Investment Owned, at Fair Value | 590 | 9,295 |
Investment Owned, at Carrying Value | 590 | 9,295 |
Mutual Funds [Member] | ' | ' |
Investment Holdings [Line Items] | ' | ' |
Investment Owned, at Cost or Amortized Cost | 12,502 | 55,113 |
Investment Owned, at Fair Value | 11,830 | 55,727 |
Investment Owned, at Carrying Value | 11,830 | 55,727 |
Available For Sale Securities [Member] | ' | ' |
Investment Holdings [Line Items] | ' | ' |
Investment Owned, at Cost or Amortized Cost | 336,579 | 355,052 |
Investment Owned, at Fair Value | 335,565 | 354,440 |
Investment Owned, at Carrying Value | $335,565 | $354,440 |
Investments_Investment_Income_
Investments - Investment Income (Expense) Comprised Primarily of Interest and Dividends (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Net Investment Income [Line Items] | ' | ' | ' | ' |
Total investment income | $944 | $371 | $1,986 | $579 |
Less investment expenses | -532 | -234 | -1,056 | -430 |
Net investment (expense) income | 412 | 137 | 930 | 149 |
Cash and Cash Equivalents [Member] | ' | ' | ' | ' |
Net Investment Income [Line Items] | ' | ' | ' | ' |
Total investment income | 9 | 122 | 21 | 242 |
Fixed Maturities [Member] | ' | ' | ' | ' |
Net Investment Income [Line Items] | ' | ' | ' | ' |
Total investment income | 783 | -30 | 1,511 | -30 |
Equity Securities [Member] | ' | ' | ' | ' |
Net Investment Income [Line Items] | ' | ' | ' | ' |
Total investment income | $152 | $279 | $454 | $367 |
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 $) | 6 Months Ended |
In Thousands, unless otherwise specified | Jun. 30, 2013 |
Net Investment Income [Line Items] | ' |
Total realized gains (losses) on trading portfolio | ($16,037) |
Total change in unrealized gains (losses) on trading portfolio | 7,874 |
Net gains (losses) recognized on trading portfolio | -8,163 |
Equity Securities [Member] | ' |
Net Investment Income [Line Items] | ' |
Total realized gains (losses) on trading portfolio | -15,969 |
Total change in unrealized gains (losses) on trading portfolio | 7,758 |
Fixed Maturities [Member] | ' |
Net Investment Income [Line Items] | ' |
Total change in unrealized gains (losses) on trading portfolio | 13 |
Other Investments [Member] | ' |
Net Investment Income [Line Items] | ' |
Total change in unrealized gains (losses) on trading portfolio | 14 |
Derivatives (Non-Hedging Instruments) [Member] | ' |
Net Investment Income [Line Items] | ' |
Total realized gains (losses) on trading portfolio | -68 |
Total change in unrealized gains (losses) on trading portfolio | $89 |
Investments_Cost_or_Amortized_
Investments - Cost or Amortized Cost and Fair Value of Securities Available for Sale (Detail) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Cost or Amortized Cost | $336,579 | $355,052 |
Gross Unrealized Gains | 828 | 3,541 |
Gross Unrealized Losses | -1,842 | -4,153 |
Fair Value | 335,565 | 354,440 |
U.S. Government Obligations and Agencies [Member] | Fixed Maturities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Cost or Amortized Cost | 116,931 | 105,229 |
Gross Unrealized Gains | 77 | 19 |
Gross Unrealized Losses | -586 | -1,033 |
Fair Value | 116,422 | 104,215 |
Corporate Bonds [Member] | Fixed Maturities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Cost or Amortized Cost | 106,450 | 94,708 |
Gross Unrealized Gains | 443 | 265 |
Gross Unrealized Losses | -148 | -770 |
Fair Value | 106,745 | 94,203 |
Mortgage-Backed and Asset-Backed Securities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Cost or Amortized Cost | 95,054 | 91,502 |
Fair Value | 94,908 | 91,000 |
Mortgage-Backed and Asset-Backed Securities [Member] | Fixed Maturities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Cost or Amortized Cost | 95,054 | 91,502 |
Gross Unrealized Gains | 204 | 75 |
Gross Unrealized Losses | -350 | -577 |
Fair Value | 94,908 | 91,000 |
Redeemable Preferred Stock [Member] | Fixed Maturities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Cost or Amortized Cost | 4,990 | ' |
Gross Unrealized Gains | 82 | ' |
Gross Unrealized Losses | -2 | ' |
Fair Value | 5,070 | ' |
Common Stock [Member] | Equity Securities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Cost or Amortized Cost | 652 | 8,500 |
Gross Unrealized Gains | 3 | 916 |
Gross Unrealized Losses | -65 | -121 |
Fair Value | 590 | 9,295 |
Mutual Funds [Member] | Equity Securities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Cost or Amortized Cost | 12,502 | 55,113 |
Gross Unrealized Gains | 19 | 2,266 |
Gross Unrealized Losses | -691 | -1,652 |
Fair Value | $11,830 | $55,727 |
Investments_Schedule_of_Credit
Investments - Schedule of Credit Quality of Fixed Maturities (Detail) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Fair Value | $323,145 | $289,418 |
Percentage of total Fair Value | 100.00% | 100.00% |
Standard & Poor's, AAA Rating [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Fair Value | 30,547 | 82,889 |
Percentage of total Fair Value | 9.50% | 28.60% |
Standard & Poor's, AA Rating [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Fair Value | 191,775 | 120,976 |
Percentage of total Fair Value | 59.30% | 41.80% |
Standard & Poor's, A Rating [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Fair Value | 49,930 | 46,689 |
Percentage of total Fair Value | 15.50% | 16.10% |
Standard & Poor's, BBB Rating [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Fair Value | 41,812 | 38,114 |
Percentage of total Fair Value | 12.90% | 13.20% |
Standard & Poor's, BB- Rating [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Fair Value | 1,504 | ' |
Percentage of total Fair Value | 0.50% | ' |
Standard & Poor's, Not Rated [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Fair Value | $7,577 | $750 |
Percentage of total Fair Value | 2.30% | 0.30% |
Investments_Schedule_of_Amorti
Investments - Schedule of Amortized Cost and Fair Value on Mortgage-Backed and Asset-Backed Securities (Detail) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Cost or Amortized Cost | $336,579 | $355,052 |
Fair Value | 335,565 | 354,440 |
Mortgage-backed securities [Member] | Agency [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Cost or Amortized Cost | 57,935 | 64,028 |
Fair Value | 57,737 | 63,547 |
Mortgage-backed securities [Member] | Non Agency [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Cost or Amortized Cost | 2,184 | ' |
Fair Value | 2,169 | ' |
Asset-backed securities [Member] | Auto Loans [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Cost or Amortized Cost | 16,858 | 14,816 |
Fair Value | 16,907 | 14,841 |
Asset-backed securities [Member] | Credit Card Receivables [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Cost or Amortized Cost | 13,478 | 11,478 |
Fair Value | 13,479 | 11,425 |
Asset-backed securities [Member] | Other Receivables [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Cost or Amortized Cost | 4,599 | 1,180 |
Fair Value | 4,616 | 1,187 |
Mortgage-Backed and Asset-Backed Securities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Cost or Amortized Cost | 95,054 | 91,502 |
Fair Value | $94,908 | $91,000 |
Investments_Summarized_Fair_Va
Investments - Summarized Fair Value and Gross Unrealized Losses on Securities Available for Sale (Detail) (USD $) | 6 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Dec. 31, 2013 |
Security | Security | |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Less than 12 months, Number of issues | 34 | 95 |
Less than 12 months, Fair value | $53,225 | $227,241 |
Less than 12 months, Unrealized losses | -314 | -4,153 |
12 months or longer, Number of issues | 29 | ' |
12 months or longer, Fair value | 81,585 | ' |
12 months or longer, Unrealized losses | -1,528 | ' |
U.S. Government Obligations and Agencies [Member] | Fixed Maturities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Less than 12 months, Number of issues | 2 | 6 |
Less than 12 months, Fair value | 17,604 | 71,042 |
Less than 12 months, Unrealized losses | -79 | -1,033 |
12 months or longer, Number of issues | 4 | ' |
12 months or longer, Fair value | 34,152 | ' |
12 months or longer, Unrealized losses | -507 | ' |
Corporate Bonds [Member] | Fixed Maturities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Less than 12 months, Number of issues | 9 | 55 |
Less than 12 months, Fair value | 5,954 | 65,926 |
Less than 12 months, Unrealized losses | -28 | -770 |
12 months or longer, Number of issues | 14 | ' |
12 months or longer, Fair value | 17,905 | ' |
12 months or longer, Unrealized losses | -120 | ' |
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 | 8 | 16 |
Less than 12 months, Fair value | 27,200 | 67,110 |
Less than 12 months, Unrealized losses | -106 | -577 |
12 months or longer, Number of issues | 5 | ' |
12 months or longer, Fair value | 19,175 | ' |
12 months or longer, Unrealized losses | -244 | ' |
Redeemable Preferred Stock [Member] | Fixed Maturities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Less than 12 months, Number of issues | 9 | ' |
Less than 12 months, Fair value | 1,080 | ' |
Less than 12 months, Unrealized losses | -2 | ' |
Common Stock [Member] | Equity Securities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Less than 12 months, Number of issues | 5 | 13 |
Less than 12 months, Fair value | 228 | 3,517 |
Less than 12 months, Unrealized losses | -23 | -121 |
12 months or longer, Number of issues | 5 | ' |
12 months or longer, Fair value | 282 | ' |
12 months or longer, Unrealized losses | -42 | ' |
Mutual Funds [Member] | Equity Securities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Less than 12 months, Number of issues | 1 | 5 |
Less than 12 months, Fair value | 1,159 | 19,646 |
Less than 12 months, Unrealized losses | -76 | -1,652 |
12 months or longer, Number of issues | 1 | ' |
12 months or longer, Fair value | 10,071 | ' |
12 months or longer, Unrealized losses | ($615) | ' |
Investments_Amortized_Cost_and
Investments - Amortized Cost and Fair Value of Fixed Maturities Available for Sale by Contractual Maturity (Detail) (USD $) | Jun. 30, 2014 | Dec. 31, 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 | $52,364 | ' |
Fixed Maturities Securities Available for Sale, Due after one year through five years, Amortized cost | 165,335 | ' |
Fixed Maturities Securities Available for Sale, Due after five years through ten years, Amortized cost | 5,094 | ' |
Fixed Maturities Securities Available for Sale, Due after ten years, Amortized cost | 2,636 | ' |
Fixed Maturities Securities Available for Sale, Amortized cost, Total | 323,425 | ' |
Fixed Maturities Securities Available for Sale, Due in one year or less, Fair Value | 52,346 | ' |
Fixed Maturities Securities Available for Sale, Due after one year through five years, Fair Value | 165,278 | ' |
Fixed Maturities Securities Available for Sale, Due after five years through ten years, Fair Value | 4,970 | ' |
Fixed Maturities Securities Available for Sale, Due after ten years, Fair Value | 2,678 | ' |
Fixed Maturities Securities Available for Sale, Fair Value, Total | 323,145 | 289,418 |
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 | 95,054 | ' |
Fixed Maturities Securities Available for Sale, Mortgage-backed Securities, Fair Value | 94,908 | ' |
Perpetual Maturity Securities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Fixed Maturities Securities Available for Sale, Perpetual Maturity, Amortized Cost | 2,942 | ' |
Fixed Maturities Securities Available for Sale, Perpetual Maturity, Fair Value | $2,965 | ' |
Investments_Summary_of_Securit
Investments - Summary of Securities Available for Sale (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Investments Debt And Equity Securities [Abstract] | ' | ' | ' | ' |
Sales proceeds (fair value) | $58,347 | $14 | $72,788 | $14 |
Gross realized gains | 4,189 | ' | 5,188 | ' |
Gross realized losses | -239 | -1 | -336 | -1 |
Other than temporary losses | ' | ' | ' | ' |
Reinsurance_Additional_Informa
Reinsurance - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2014 | |
Reinsurance Program Effective June One Two Thousand Fourteen [Member] | ' |
Effects of Reinsurance [Line Items] | ' |
Percentage of premium ceded | 30.00% |
Percentage reduction of premium ceded | 15.00% |
Reinsurance Program Effective June One Two Thousand Thirteen [Member] | ' |
Effects of Reinsurance [Line Items] | ' |
Percentage of premium ceded | 45.00% |
Stockholders' Equity, Total [Member] | Amounts Due From Reinsurers [Member] | ' |
Effects of Reinsurance [Line Items] | ' |
Unsecured amounts due from reinsurers exceeding a fixed percentage of stockholders equity | 3.00% |
Reinsurance_Current_Ratings_fr
Reinsurance - Current Ratings from Rating Agencies and Unsecured Net Amounts Due from Reinsurers Whose Aggregate Balance Exceeded 3% of Stockholders' Equity (Detail) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Ceded Credit Risk [Line Items] | ' | ' |
Reinsurance unsecured amounts due from reinsurers total | $190,697 | $263,572 |
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 | 59,420 | 87,789 |
Florida Hurricane Catastrophe Fund [Member] | ' | ' |
Ceded Credit Risk [Line Items] | ' | ' |
Reinsurance unsecured amounts due from reinsurers total | ' | 33,593 |
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 | $131,277 | $142,190 |
Reinsurance_Reinsurance_Arrang
Reinsurance - Reinsurance Arrangements (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Reinsurance Disclosures [Abstract] | ' | ' | ' | ' |
Direct premiums written | $220,009 | $219,946 | $411,926 | $424,085 |
Ceded premiums written | -76,483 | -133,897 | -198,132 | -275,214 |
Net premiums written | 143,526 | 86,049 | 213,794 | 148,871 |
Direct Premiums Earned | 192,061 | 197,302 | 382,705 | 391,470 |
Ceded Premiums Earned | -118,699 | -130,435 | -245,536 | -259,194 |
Premiums earned, net | 73,362 | 66,867 | 137,169 | 132,276 |
Direct Losses and Loss Adjustment Expenses | 46,970 | 50,350 | 97,692 | 100,946 |
Ceded Losses and Loss Adjustment Expenses | -19,291 | -25,151 | -43,188 | -49,264 |
Net Losses and Loss Adjustment Expenses | $27,679 | $25,199 | $54,504 | $51,682 |
Reinsurance_Prepaid_Reinsuranc
Reinsurance - Prepaid Reinsurance Premiums and Reinsurance Recoverable and Receivable (Detail) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Reinsurance Disclosures [Abstract] | ' | ' |
Prepaid reinsurance premiums | $193,811 | $241,214 |
Reinsurance recoverable on unpaid losses and LAE | 58,705 | 68,584 |
Reinsurance recoverable on paid losses | 18,861 | 39,263 |
Reinsurance receivable, net | 26,352 | 203 |
Reinsurance recoverable and receivable | $103,918 | $108,050 |
Insurance_Operations_Beginning
Insurance Operations - Beginning and Ending Balances and Changes in DPAC, Net of DRCC (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Insurance [Abstract] | ' | ' | ' | ' |
DPAC, beginning of period | $54,211 | $55,391 | $54,099 | $54,431 |
Capitalized Costs | 29,993 | 30,241 | 56,775 | 58,933 |
Amortization of DPAC | -26,055 | -26,599 | -52,725 | -54,331 |
DPAC, end of period | 58,149 | 59,033 | 58,149 | 59,033 |
DRCC, beginning of period | 38,318 | 38,014 | 38,200 | 37,149 |
Ceding Commissions Written | 10,439 | 26,222 | 32,319 | 48,534 |
Earned Ceding Commissions | -18,685 | -22,444 | -40,447 | -43,891 |
DRCC, end of period | 30,072 | 41,792 | 30,072 | 41,792 |
DPAC (DRCC), net, beginning of period | 15,893 | 17,377 | 15,899 | 17,282 |
Capitalized Costs, net | 19,554 | 4,019 | 24,456 | 10,399 |
Amortization of DPAC (DRCC), net | -7,370 | -4,155 | -12,278 | -10,440 |
DPAC (DRCC), net, end of period | $28,077 | $17,241 | $28,077 | $17,241 |
Insurance_Operations_Change_in
Insurance Operations - Change in Liability for Unpaid Losses and LAE (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Insurance [Abstract] | ' | ' | ' | ' |
Balance at beginning of period | $150,557 | $182,528 | $159,222 | $193,241 |
Less reinsurance recoverable | -64,109 | -75,680 | -68,584 | -81,415 |
Net balance at beginning of period | 86,448 | 106,848 | 90,638 | 111,826 |
Incurred (recovered) related to current year | 28,333 | 26,675 | 55,188 | 53,329 |
Incurred (recovered) related to prior years | -654 | -1,476 | -684 | -1,647 |
Total incurred | 27,679 | 25,199 | 54,504 | 51,682 |
Paid related to Current year | 16,200 | 16,303 | 20,067 | 17,475 |
Paid related to Prior years | 12,007 | 17,304 | 39,155 | 47,593 |
Total paid | 28,207 | 33,607 | 59,222 | 65,068 |
Net balance at end of period | 85,920 | 98,440 | 85,920 | 98,440 |
Plus reinsurance recoverable | 58,705 | 67,820 | 58,705 | 67,820 |
Balance at end of period | $144,625 | $166,260 | $144,625 | $166,260 |
Insurance_Operations_Additiona
Insurance Operations - Additional Information (Detail) (USD $) | 6 Months Ended |
Jun. 30, 2014 | |
Statutory Accounting Practices [Line Items] | ' |
Maximum dividend without prior approval is limited, Percent of statutory unassigned capital 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 |
UPCIC [Member] | ' |
Statutory Accounting Practices [Line Items] | ' |
Statutory ordinary dividend capacity | 290,000 |
UPCIC and APPCIC [Member] | ' |
Statutory Accounting Practices [Line Items] | ' |
Dividend paid to UIHCF | 0 |
Minimum capitalization rate | 10.00% |
Statutory Accounting Practices, Statutory Capital and Surplus Required | 5,000,000 |
Minimum capital required | 'Greater of ten percent of the insurer's total liabilities or $5.0 million. |
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 $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
UPCIC [Member] | ' | ' |
Statutory Accounting Practices [Line Items] | ' | ' |
Ten percent of total liabilities | $48,122 | $39,179 |
Statutory capital and surplus | 167,862 | 161,803 |
APPCIC [Member] | ' | ' |
Statutory Accounting Practices [Line Items] | ' | ' |
Ten percent of total liabilities | 696 | 625 |
Statutory capital and surplus | $13,287 | $13,708 |
Insurance_Operations_Assets_He
Insurance Operations - Assets Held by Insurance Regulators (Detail) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Restricted Cash and Cash Equivalents [Member] | ' | ' |
Statutory Accounting Practices [Line Items] | ' | ' |
Assets held by insurance regulators | $2,635 | $2,600 |
Investments [Member] | ' | ' |
Statutory Accounting Practices [Line Items] | ' | ' |
Assets held by insurance regulators | $3,772 | $3,707 |
LongTerm_Debt_Additional_Infor
Long-Term Debt - Additional Information (Detail) (USD $) | 6 Months Ended | 3 Months Ended | 6 Months Ended | ||||||||||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Mar. 29, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | 23-May-13 | |
Surplus Note [Member] | Surplus Note [Member] | Term Loan [Member] | Term Loan [Member] | Revolving Line of Credit [Member] | Revolving Line of Credit [Member] | Term Loan [Member] | Term Loan [Member] | Term Loan [Member] | Term Loan [Member] | Term Loan [Member] | |||
Deutsche Bank [Member] | Deutsche Bank [Member] | ||||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term debt surplus | ' | ' | $18,015,000 | $18,750,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term debt | ' | ' | ' | ' | 12,969,000 | 18,490,000 | ' | ' | ' | ' | ' | ' | ' |
Unsecured line of credit, maximum borrowing capacity | ' | ' | ' | ' | ' | ' | ' | 10,000,000 | ' | ' | ' | ' | ' |
Unsecured line of credit, amount drawn | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' |
Unsecured term loan agreement | ' | ' | ' | ' | 14,000,000 | 20,000,000 | ' | ' | ' | ' | ' | ' | 20,000,000 |
Amortization of discount | $480,000 | $101,000 | ' | ' | ' | ' | ' | ' | $230,000 | $101,000 | $480,000 | $101,000 | ' |
LongTerm_Debt_Principal_Amount
Long-Term Debt - Principal Amount and Unamortized Discount (Detail) (Term Loan [Member], USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Term Loan [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Principal amount | $14,000 | $20,000 |
Less: unamortized original issue discount | -1,031 | -1,510 |
Term Loan, net of unamortized original issue discount | $12,969 | $18,490 |
Stockholders_Equity_Activity_R
Stockholder's Equity - Activity Relating to Common Shares (Detail) | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | |
Common Stock [Member] | ' | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | |
Balance, as of December 31, 2013 | 43,641 | |
Conversion of preferred stock | 65 | |
Options exercised | 1,725 | |
Restricted stocks grants | 950 | |
Shares cancelled | -1,446 | |
Balance, as of June 30, 2014 | 44,935 | |
Treasury Stock [Member] | ' | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | |
Balance, as of December 31, 2013 | -8,275 | |
Shares repurchased | -1,672 | |
Shares acquired through cashless exercise | -1,446 | [1] |
Shares cancelled | 1,446 | |
Balance, as of June 30, 2014 | -9,947 | |
Outstanding Shares [Member] | ' | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | |
Balance, as of December 31, 2013 | 35,366 | |
Conversion of preferred stock | 65 | |
Shares repurchased | -1,672 | |
Options exercised | 1,725 | |
Restricted stocks grants | 950 | |
Shares acquired through cashless exercise | -1,446 | [1] |
Balance, as of June 30, 2014 | 34,988 | |
[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. |
Stockholders_Equity_Additional
Stockholders' Equity - Additional Information (Detail) (USD $) | 0 Months Ended | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||
In Millions, except Share data, unless otherwise specified | Apr. 16, 2014 | Jan. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Equity [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Treasury shares acquired | ' | ' | 38,424 | ' | ' | ' | 446,271 | ' |
Shares repurchased during period | ' | ' | ' | ' | ' | ' | $5.50 | ' |
Common stock issued as a result of conversion | ' | ' | ' | ' | ' | ' | 64,938 | ' |
Stock repurchase program, amount | ' | ' | 10 | 10 | ' | ' | 10 | ' |
Dividends per share declared on outstanding common stock | $0.10 | $0.10 | ' | $0.10 | ' | $0.08 | $0.20 | $0.16 |
Dividends payable date | ' | ' | ' | ' | 3-Mar-14 | ' | 3-Jul-14 | ' |
Dividends payable, shareholders record date | ' | ' | ' | ' | 19-Feb-14 | ' | 19-Jun-14 | ' |
Former Board of Directors Chairman [Member] | ' | ' | ' | ' | ' | ' | ' | ' |
Equity [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Treasury shares acquired | ' | ' | ' | ' | ' | ' | 1,225,000 | ' |
Shares repurchased during period | ' | ' | ' | ' | ' | ' | $14.70 | ' |
Maximum [Member] | Former Board of Directors Chairman [Member] | ' | ' | ' | ' | ' | ' | ' | ' |
Equity [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of stock owned by Mr. Mier | ' | ' | 5.00% | 5.00% | ' | ' | 5.00% | ' |
Series M [Member] | ' | ' | ' | ' | ' | ' | ' | ' |
Equity [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Conversion of preferred shares into common stock | ' | ' | ' | ' | ' | ' | 8,000 | ' |
Series A [Member] | ' | ' | ' | ' | ' | ' | ' | ' |
Equity [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Conversion of preferred shares into common stock | ' | ' | ' | ' | ' | ' | 9,975 | ' |
Related_Party_Transactions_Pay
Related Party Transactions - Payments Made by Company to Downes and Associates (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Downes and Associates [Member] | ' | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' | ' |
Payments made by the company to related party | $0 | $130 | $0 | $259 |
SPC Global RE Advisors LLC [Member] | ' | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' | ' |
Payments made by the company to related party | $30 | ' | $60 | ' |
Related_Party_Transactions_Add
Related Party Transactions - Additional Information (Detail) (SPC Global RE Advisors LLC [Member], USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
SPC Global RE Advisors LLC [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Payments due to related party | $0 | $0 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Income Tax Disclosure [Abstract] | ' | ' | ' | ' |
Income taxes, net | $13,283 | $12,659 | $22,851 | $20,462 |
Effective tax rate | 43.70% | 42.60% | 42.70% | 41.40% |
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 | 6 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Numerator for EPS: | ' | ' | ' | ' |
Net income | $17,126 | $17,029 | $30,675 | $28,988 |
Less: Preferred stock dividends | -3 | -5 | -8 | -10 |
Income available to common stockholders | $17,123 | $17,024 | $30,667 | $28,978 |
Denominator for EPS: | ' | ' | ' | ' |
Weighted average common shares outstanding | 33,968 | 36,378 | 33,696 | 38,138 |
Plus: Assumed conversion of stock-based compensation | 1,171 | 1,448 | 1,697 | 1,134 |
Plus: Assumed conversion of preferred stock | 35 | 488 | 57 | 488 |
Weighted average diluted common shares outstanding | 35,174 | 38,314 | 35,450 | 39,760 |
Basic earnings per common share | $0.50 | $0.47 | $0.91 | $0.76 |
Diluted earnings per common share | $0.49 | $0.44 | $0.87 | $0.73 |
Other_Comprehensive_Income_Los2
Other Comprehensive Income (Loss) - Components of Other Comprehensive Income (loss) Pre-Tax and After-Tax (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Equity [Abstract] | ' | ' | ' | ' |
Net unrealized gains (losses) on investments available for sale arising during the period, Pre-tax | $3,366 | ($4,246) | $4,450 | ($4,246) |
Less: Amounts reclassified from accumulated other comprehensive income (loss), Pre-tax | -3,950 | 1 | -4,852 | 1 |
Net current period other comprehensive income (loss), Pre-tax | -584 | -4,245 | -402 | -4,245 |
Net unrealized gains (losses) on investments available for sale arising during the period, Tax | 1,299 | -1,638 | 1,717 | -1,638 |
Less: Amounts reclassified from accumulated other comprehensive income (loss), Tax | -1,524 | ' | -1,872 | ' |
Net current period other comprehensive income (loss), Tax | -225 | -1,638 | -155 | -1,638 |
Net unrealized gains (losses) on investments available for sale arising during the period, After-tax | 2,067 | -2,608 | 2,733 | -2,608 |
Less: Amounts reclassified from accumulated other comprehensive income (loss), After-tax | -2,426 | ' | -2,980 | ' |
Net current period other comprehensive income (loss), After-tax | ($359) | ($2,608) | ($247) | ($2,608) |
Other_Comprehensive_Income_Los3
Other Comprehensive Income (Loss) - Reclassifications Out of Accumulated Other Comprehensive Income (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' |
Net realized gains (losses) on investments | $3,950 | ($1) | $4,852 | ($1) |
Income taxes, current | -1,524 | ' | -1,872 | ' |
Net of tax | 2,426 | ' | 2,980 | ' |
Accumulated Net Unrealized Investment Gain (Loss) [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' |
Net realized gains (losses) on investments | 3,950 | -1 | 4,852 | -1 |
Income taxes, current | -1,524 | ' | -1,872 | ' |
Net of tax | $2,426 | ' | $2,980 | ' |
Commitments_and_Contingencies_
Commitments and Contingencies - Additional Information (Detail) (USD $) | Jun. 30, 2014 |
In Millions, unless otherwise specified | |
Commitments And Contingencies Disclosure [Abstract] | ' |
Purchase price of property | $5.99 |
Fair_Value_Measurements_Assets
Fair Value Measurements - Assets Accounted for at Fair Value on Recurring Basis (Detail) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' |
Cash and cash equivalents | $201,357 | $117,275 | $180,857 | $347,392 |
Restricted cash and cash equivalents | 2,635 | 2,600 | ' | ' |
Fixed maturities | 323,145 | 289,418 | ' | ' |
Equity securities | 12,420 | 65,022 | ' | ' |
Total | 335,565 | 354,440 | ' | ' |
Mortgage-Backed and Asset-Backed Securities [Member] | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' |
Total | 94,908 | 91,000 | ' | ' |
Fair Value, Measurements, Recurring [Member] | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' |
Cash and cash equivalents | 201,357 | 117,275 | ' | ' |
Restricted cash and cash equivalents | 2,635 | 2,600 | ' | ' |
Total | 335,565 | 354,440 | ' | ' |
Total assets accounted for at fair value | 539,557 | 474,315 | ' | ' |
Fair Value, Measurements, Recurring [Member] | U.S. Government Obligations and Agencies [Member] | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' |
Fixed maturities | 116,422 | 104,215 | ' | ' |
Fair Value, Measurements, Recurring [Member] | Corporate Bonds [Member] | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' |
Fixed maturities | 106,745 | 94,203 | ' | ' |
Fair Value, Measurements, Recurring [Member] | Mortgage-Backed and Asset-Backed Securities [Member] | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' |
Fixed maturities | 94,908 | 91,000 | ' | ' |
Fair Value, Measurements, Recurring [Member] | Redeemable Preferred Stock [Member] | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' |
Fixed maturities | 5,070 | ' | ' | ' |
Fair Value, Measurements, Recurring [Member] | Common Stock [Member] | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' |
Equity securities | 590 | 9,295 | ' | ' |
Fair Value, Measurements, Recurring [Member] | Mutual Funds [Member] | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' |
Equity securities | 11,830 | 55,727 | ' | ' |
Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' |
Cash and cash equivalents | 201,357 | 117,275 | ' | ' |
Restricted cash and cash equivalents | 2,635 | 2,600 | ' | ' |
Total | 12,420 | 65,022 | ' | ' |
Total assets accounted for at fair value | 216,412 | 184,897 | ' | ' |
Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Common Stock [Member] | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' |
Equity securities | 590 | 9,295 | ' | ' |
Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Mutual Funds [Member] | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' |
Equity securities | 11,830 | 55,727 | ' | ' |
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' |
Total | 323,145 | 289,418 | ' | ' |
Total assets accounted for at fair value | 323,145 | 289,418 | ' | ' |
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | U.S. Government Obligations and Agencies [Member] | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' |
Fixed maturities | 116,422 | 104,215 | ' | ' |
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Corporate Bonds [Member] | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' |
Fixed maturities | 106,745 | 94,203 | ' | ' |
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Mortgage-Backed and Asset-Backed Securities [Member] | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' |
Fixed maturities | 94,908 | 91,000 | ' | ' |
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Redeemable Preferred Stock [Member] | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' |
Fixed maturities | $5,070 | ' | ' | ' |
Fair_Value_Measurements_Summar
Fair Value Measurements - Summarizes Carrying Value and Estimated Fair Values of Financial Instruments not Carried at Fair Value (Detail) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Surplus Note [Member] | ' | ' |
Fair Value Inputs Assets Liabilities Quantitative Information [Line Items] | ' | ' |
Carrying value | $18,015 | $18,750 |
Term Loan [Member] | ' | ' |
Fair Value Inputs Assets Liabilities Quantitative Information [Line Items] | ' | ' |
Carrying value | 12,969 | 18,490 |
Level 3 [Member] | Surplus Note [Member] | ' | ' |
Fair Value Inputs Assets Liabilities Quantitative Information [Line Items] | ' | ' |
Estimated fair value | 15,289 | 15,900 |
Level 3 [Member] | Term Loan [Member] | ' | ' |
Fair Value Inputs Assets Liabilities Quantitative Information [Line Items] | ' | ' |
Estimated fair value | $12,969 | $18,490 |