Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Feb. 19, 2016 | Jun. 30, 2015 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | UVE | ||
Entity Registrant Name | UNIVERSAL INSURANCE HOLDINGS, INC. | ||
Entity Central Index Key | 891,166 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 35,110,229 | ||
Entity Public Float | $ 788,970,070 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 02, 2014 |
Statement Of Financial Position [Abstract] | |||
Contingently redeemable common stock, issued shares | 0 | 1,000,000 | 1,000,000 |
Contingently redeemable common stock, outstanding shares | 0 | 1,000,000 | |
Cumulative convertible preferred stock, par value | $ 0.01 | $ 0.01 | |
Cumulative convertible preferred stock, shares authorized | 1,000,000 | 1,000,000 | |
Cumulative convertible preferred stock, shares issued | 10,000 | 12,000 | |
Cumulative convertible preferred stock, shares outstanding | 10,000 | 12,000 | |
Cumulative convertible preferred stock, minimum liquidation preference | $ 9.99 | $ 8.49 | |
Common stock, par value | $ 0.01 | $ 0.01 | |
Common stock, shares authorized | 55,000,000 | 55,000,000 | |
Common stock, shares issued | 45,525,000 | 43,769,000 | |
Common stock, shares outstanding | 35,110,000 | 34,102,000 | |
Treasury stock, shares | 10,415,000 | 9,667,000 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | |
ASSETS | |||
Cash and cash equivalents | $ 197,014 | $ 115,397 | |
Restricted cash and cash equivalents | 2,635 | 2,635 | |
Fixed maturities, at fair value | 416,083 | 353,949 | |
Equity securities, at fair value | 42,214 | 19,642 | |
Short-term investments, at fair value | 25,021 | 49,990 | |
Investment real estate, net | 6,117 | ||
Prepaid reinsurance premiums | 114,673 | 190,505 | |
Reinsurance recoverable | 22,853 | 55,187 | |
Reinsurance receivable, net | 353 | 7,468 | |
Premiums receivable, net | 50,980 | 50,987 | |
Other receivables | 4,626 | 2,763 | |
Property and equipment, net | 27,065 | 17,254 | |
Deferred policy acquisition costs, net | 60,019 | 25,660 | |
Income taxes recoverable | 5,420 | 5,675 | |
Deferred income tax asset, net | 13,912 | 11,850 | |
Other assets | 4,563 | 2,812 | |
Total assets | 993,548 | 911,774 | |
LIABILITIES: | |||
Unpaid losses and loss adjustment expenses | 98,840 | 134,353 | |
Unearned premiums | 442,366 | 395,748 | |
Advance premium | 24,813 | 17,919 | |
Accounts payable | 378 | 4,121 | |
Book overdraft | 5,924 | ||
Reinsurance payable, net | 73,585 | 66,066 | |
Income taxes payable | 1,799 | ||
Other liabilities and accrued expenses | 36,424 | 36,318 | |
Long-term debt | 24,050 | 30,610 | |
Total liabilities | $ 700,456 | $ 692,858 | |
Commitments and Contingencies (Note 15) | |||
Contingently redeemable common stock - Issued shares - 0 and 1,000, Outstanding shares - 0 and 1,000 | $ 19,000 | ||
STOCKHOLDERS' EQUITY: | |||
Cumulative convertible preferred stock, $.01 par value Authorized shares - 1,000 Issued shares - 10 and 12 Outstanding shares - 10 and 12 Minimum liquidation preference - 9.99 and $8.49 per share | |||
Common stock, $.01 par value Authorized shares - 55,000 Issued shares - 45,525 and 43,769 Outstanding shares - 35,110 and 34,102 | $ 455 | $ 448 | |
Treasury shares, at cost - 10,415 and 9,667 | (80,802) | (62,153) | |
Additional paid-in capital | 70,789 | 40,987 | |
Accumulated other comprehensive income (loss), net of taxes | (4,006) | (1,835) | |
Retained earnings | 306,656 | 222,469 | |
Total stockholders' equity | [1] | 293,092 | 199,916 |
Total liabilities, contingently redeemable common stock and stockholders' equity | $ 993,548 | $ 911,774 | |
[1] | See “—Note 8 (Stockholders’ Equity)” for an explanation of events subsequent to December 31, 2014 giving rise to pro-forma stockholders’ equity of $218.9 million as of December 31, 2014. |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
PREMIUMS EARNED AND OTHER REVENUES | ||||
Direct premiums written | $ 883,409 | $ 789,577 | $ 783,894 | |
Ceded premiums written | (256,961) | (399,730) | (522,116) | |
Net premiums written | 626,448 | 389,847 | 261,778 | |
Change in net unearned premium | (122,449) | (62,970) | 5,877 | |
Premiums earned, net | 503,999 | 326,877 | 267,655 | |
Net investment income (expense) | 5,155 | 2,375 | 1,928 | |
Net realized gains (losses) on investments | 1,060 | 5,627 | (14,740) | |
Net change in unrealized gains (losses) on investments | 7,850 | |||
Commission revenue | 14,870 | 14,205 | 18,615 | |
Policy fees | 15,440 | 13,982 | 13,661 | |
Other revenue | 6,020 | 6,210 | 6,190 | |
Total premiums earned and other revenues | 546,544 | 369,276 | 301,159 | |
OPERATING COSTS AND EXPENSES | ||||
Losses and loss adjustment expenses | 187,739 | 123,275 | 108,615 | |
General and administrative expenses | 183,782 | 118,397 | 91,988 | |
Total operating costs and expenses | 371,521 | 241,672 | 200,603 | |
INCOME BEFORE INCOME TAXES | 175,023 | 127,604 | 100,556 | |
Income tax expense | 68,539 | 54,616 | 41,579 | |
NET INCOME | [1] | $ 106,484 | $ 72,988 | $ 58,977 |
Basic earnings per common share | $ 3.06 | $ 2.17 | $ 1.64 | |
Weighted average common shares outstanding - Basic | 34,799 | 33,569 | 35,866 | |
Fully diluted earnings per common share | $ 2.97 | $ 2.08 | $ 1.56 | |
Weighted average common shares outstanding - Diluted | 35,884 | 35,150 | 37,776 | |
Cash dividend declared per common share | $ 0.63 | $ 0.55 | $ 0.49 | |
[1] | See “—Note 8 (Stockholders’ Equity)” for an explanation of events subsequent to December 31, 2014 giving rise to pro-forma stockholders’ equity of $218.9 million as of December 31, 2014. |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net income | [1] | $ 106,484 | $ 72,988 | $ 58,977 |
Other comprehensive income (loss) | (2,171) | (1,459) | (376) | |
Comprehensive income (loss) | $ 104,313 | $ 71,529 | $ 58,601 | |
[1] | See “—Note 8 (Stockholders’ Equity)” for an explanation of events subsequent to December 31, 2014 giving rise to pro-forma stockholders’ equity of $218.9 million as of December 31, 2014. |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock [Member] | Preferred Stock [Member] | Additional Paid-In Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income [Member] | Treasury Stock [Member] | |||
Beginning Balance at Dec. 31, 2012 | $ 163,514 | [1] | $ 419 | $ 1 | $ 38,684 | [1] | $ 127,511 | $ (3,101) | ||
Beginning balance, shares at Dec. 31, 2012 | 41,889 | 108 | ||||||||
Stock option exercises | (2,140) | [1] | $ 23 | 9,446 | [1] | (11,609) | ||||
Stock option exercises, shares | 2,330 | |||||||||
Grants and vesting of restricted stock | (1,021) | [1] | $ 10 | (10) | [1] | (1,021) | ||||
Grants and vesting of restricted stock, shares | 1,000 | |||||||||
Conversion of preferred stock | $ 4 | $ (1) | (3) | [1] | ||||||
Conversion of preferred stock, shares | 389 | (78) | ||||||||
Purchases of treasury stock | (32,366) | [1] | $ (32,366) | |||||||
Purchases of treasury stock, shares | 7,257 | |||||||||
Retirement of treasury shares | $ (20) | (12,610) | [1] | $ 12,630 | ||||||
Retirement of treasury shares, shares | (1,967) | 1,967 | ||||||||
Share-based compensation | [1] | 6,416 | 6,416 | |||||||
Net income | 58,977 | [1] | 58,977 | |||||||
Change in net unrealized gains (losses) | [2] | (376) | [1] | $ (376) | ||||||
Excess tax benefit (shortfall), net | [1],[3] | 359 | 359 | |||||||
Declaration of dividends | (17,754) | [1] | (17,754) | |||||||
Ending Balance at Dec. 31, 2013 | 175,609 | [1] | $ 436 | 42,282 | [1] | 168,734 | (376) | $ (35,467) | ||
Ending balance, shares at Dec. 31, 2013 | 43,641 | 30 | ||||||||
Stock option exercises | (6,036) | [1] | $ 19 | 9,347 | [1] | (15,402) | ||||
Stock option exercises, shares | 1,900 | |||||||||
Grants and vesting of restricted stock | (11,545) | [1] | $ 10 | (10) | [1] | (11,545) | ||||
Grants and vesting of restricted stock, shares | 950 | |||||||||
Conversion of preferred stock | $ 1 | (1) | [1] | |||||||
Conversion of preferred stock, shares | 65 | (18) | ||||||||
Purchases of treasury stock | (29,736) | [1] | $ (29,736) | |||||||
Purchases of treasury stock, shares | 2,392 | |||||||||
Treasury shares reissued | (3,050) | [1] | $ 3,050 | |||||||
Retirement of treasury shares | $ (18) | (26,929) | [1] | $ 26,947 | ||||||
Retirement of treasury shares, shares | (1,787) | 1,787 | ||||||||
Share-based compensation | [1] | 12,342 | 12,342 | |||||||
Net income | 72,988 | [1] | 72,988 | |||||||
Change in net unrealized gains (losses) | [2] | (1,459) | [1] | (1,459) | ||||||
Excess tax benefit (shortfall), net | [1],[3] | 7,006 | 7,006 | |||||||
Declaration of dividends | (19,253) | [1] | (19,253) | |||||||
Ending Balance at Dec. 31, 2014 | [1] | 199,916 | $ 448 | 40,987 | 222,469 | (1,835) | $ (62,153) | |||
Ending balance, shares at Dec. 31, 2014 | [1] | 44,769 | 12 | |||||||
Stock option exercises | $ (4,287) | [1] | $ 7 | 3,807 | [1] | (8,101) | ||||
Stock option exercises, shares | 751 | 751 | ||||||||
Grants and vesting of restricted stock | $ (7,344) | [1] | $ 6 | (6) | [1] | (7,344) | ||||
Grants and vesting of restricted stock, shares | 615 | |||||||||
Purchases of treasury stock | (18,649) | [1] | $ (18,649) | |||||||
Purchases of treasury stock, shares | (2) | 748 | ||||||||
Retirement of treasury shares | $ (6) | (15,439) | [1] | $ 15,445 | ||||||
Retirement of treasury shares, shares | (610) | 610 | ||||||||
Share-based compensation | [1] | 17,386 | 17,386 | |||||||
Net income | 106,484 | [1] | 106,484 | |||||||
Change in net unrealized gains (losses) | [2] | (2,171) | [1] | (2,171) | ||||||
Excess tax benefit (shortfall), net | [1],[3] | 5,310 | 5,310 | |||||||
Declaration of dividends | (22,297) | [1] | (22,297) | |||||||
Ending Balance at Dec. 31, 2015 | 293,092 | [1] | $ 455 | 70,789 | [1] | $ 306,656 | $ (4,006) | $ (80,802) | ||
Ending balance, shares at Dec. 31, 2015 | 45,525 | 10 | ||||||||
Purchase of preferred stock | [1] | (256) | (256) | |||||||
Reclassification of contingently redeemable common stock to common stock | [1] | $ 19,000 | $ 19,000 | |||||||
[1] | See “—Note 8 (Stockholders’ Equity)” for an explanation of events subsequent to December 31, 2014 giving rise to pro-forma stockholders’ equity of $218.9 million as of December 31, 2014. | |||||||||
[2] | Represents change in fair value of available for sale investments, net of tax benefit of $1,369 thousand, $916 thousand and $236 thousand in years ended December 31, 2015, 2014 and 2013, respectively. | |||||||||
[3] | Excess tax benefits are related to share-based compensation. |
CONSOLIDATED STATEMENTS OF STO7
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Tax benefit from AFS securities adjustment | [1] | $ 1,369 | $ 916 | $ 236 |
Total stockholders' equity | [2] | $ 293,092 | 199,916 | $ 175,609 |
Pro-Forma [Member] | ||||
Total stockholders' equity | [2] | $ 218,916 | ||
[1] | Represents change in fair value of available for sale investments, net of tax benefit of $1,369 thousand, $916 thousand and $236 thousand in years ended December 31, 2015, 2014 and 2013, respectively. | |||
[2] | See “—Note 8 (Stockholders’ Equity)” for an explanation of events subsequent to December 31, 2014 giving rise to pro-forma stockholders’ equity of $218.9 million as of December 31, 2014. |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Cash flows from operating activities: | ||||
Net income | [1] | $ 106,484 | $ 72,988 | $ 58,977 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Bad debt expense | 611 | 431 | 428 | |
Depreciation and amortization | 2,033 | 1,194 | 1,012 | |
Amortization of share-based compensation | 17,386 | 12,342 | 6,417 | |
Amortization of original issue discount on debt | 521 | 840 | 601 | |
Accretion of deferred credit | (521) | (840) | (601) | |
Book overdraft increase (decrease) | (5,924) | (9,023) | (11,047) | |
Net realized (gains) losses on investments | (1,060) | (5,627) | 14,740 | |
Net change in unrealized (gains) losses on investments | (7,850) | |||
Amortization of premium/accretion of discount, net | 1,831 | 2,116 | 1,582 | |
Deferred income taxes | (693) | 1,118 | 7,363 | |
Excess tax (benefits) shortfall from share-based compensation | (5,310) | (7,006) | (359) | |
Other | 42 | 19 | 10 | |
Net change in assets and liabilities relating to operating activities: | ||||
Restricted cash and cash equivalents | (35) | 30,409 | ||
Purchase of trading securities | (26,009) | |||
Proceeds from sales of trading securities | 102,661 | |||
Prepaid reinsurance premiums | 75,832 | 50,709 | (1,293) | |
Reinsurance recoverable | 32,334 | 52,660 | (18,656) | |
Reinsurance receivable, net | 7,115 | (7,265) | 24,131 | |
Premiums receivable, net | (385) | (4,911) | 3,256 | |
Accrued investment income | (298) | (230) | (720) | |
Other receivables | (1,783) | 12 | 131 | |
Income taxes recoverable | 255 | 2,477 | (5,558) | |
Deferred policy acquisition costs, net | (34,359) | (9,761) | 1,383 | |
Other assets | (750) | (740) | (459) | |
Unpaid losses and loss adjustment expenses | (35,513) | (24,869) | (34,019) | |
Unearned premiums | 46,618 | 12,260 | (4,583) | |
Accounts payable | (3,743) | 680 | (927) | |
Reinsurance payable, net | 7,519 | (20,166) | 973 | |
Income taxes payable | 3,510 | 6,239 | 2,226 | |
Other liabilities and accrued expenses | 625 | 2,774 | 4,803 | |
Advance premium | 6,894 | (5,040) | 7,937 | |
Net cash provided by (used in) operating activities | 219,271 | 123,346 | 156,959 | |
Cash flows from investing activities: | ||||
Proceeds from sale of property and equipment | 86 | 84 | 8 | |
Purchases of property and equipment | (11,869) | (9,267) | (1,350) | |
Payments to acquire a business | (1,000) | |||
Purchases of equity securities, available for sale | (65,038) | (116,541) | (77,859) | |
Purchases of fixed maturities, available for sale | (178,198) | (106,885) | (305,330) | |
Purchases of short-term investments, available for sale | (87,538) | (50,000) | ||
Purchases of investment real estate, net | (6,220) | |||
Proceeds from sales of equity securities, available for sale | 41,456 | 163,981 | 15,542 | |
Proceeds from sales of fixed maturities, available for sale | 38,379 | 17,153 | ||
Proceeds from sales of short-term investments, available for sale | 12,500 | |||
Maturities of fixed maturities, available for sale | 74,390 | 24,287 | 16,306 | |
Maturities of short-term investments, available for sale | 100,000 | |||
Net cash provided by (used in) investing activities | (83,052) | (77,188) | (352,683) | |
Cash flows from financing activities: | ||||
Preferred stock dividend | (10) | (13) | (29) | |
Common stock dividend | (22,287) | (19,240) | (17,725) | |
Issuance of common stock | 511 | 73 | ||
Purchase of treasury stock | (18,649) | (29,736) | (32,366) | |
Purchase of preferred stock | (256) | |||
Proceeds received from issuance of contingently redeemable common stock | 19,000 | |||
Payments related to tax withholding for share-based compensation | (12,141) | (17,655) | (3,161) | |
Excess tax benefits (shortfall) from share-based compensation | 5,310 | 7,006 | 359 | |
Repayment of debt | (8,470) | (7,471) | (1,471) | |
Proceeds from borrowings | 1,390 | 20,000 | ||
Net cash provided by (used in) financing activities | (54,602) | (48,036) | (34,393) | |
Net increase (decrease) in cash and cash equivalents | 81,617 | (1,878) | (230,117) | |
Cash and cash equivalents at beginning of period | 115,397 | 117,275 | 347,392 | |
Cash and cash equivalents at end of period | 197,014 | 115,397 | 117,275 | |
Supplemental cash and non-cash flow disclosures: | ||||
Interest paid | 963 | 1,486 | 1,166 | |
Income taxes paid | $ 65,383 | $ 44,769 | 36,634 | |
Non-cash transfer of investments from trading to available for sale portfolio | $ 4,004 | |||
[1] | See “—Note 8 (Stockholders’ Equity)” for an explanation of events subsequent to December 31, 2014 giving rise to pro-forma stockholders’ equity of $218.9 million as of December 31, 2014. |
Nature of Operations and Basis
Nature of Operations and Basis of Presentation | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Nature of Operations and Basis of Presentation | NOTE 1 – NATURE OF OPERATIONS AND BASIS OF PRESENTATION Nature of Operations, Basis of Presentation and Consolidation Universal Insurance Holdings, Inc. (“UVE”) is a Delaware corporation incorporated in 1990. UVE with its wholly-owned subsidiaries (the “Company”), is a vertically integrated insurance holding company performing all aspects of insurance underwriting, distribution and claims. Through its wholly-owned subsidiaries, Universal Property & Casualty Insurance Company (“UPCIC”) and American Platinum Property and Casualty Insurance Company (“APPCIC”), together 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 currently offered in eleven states as of December 31, 2015, including Florida, which comprises the majority of the Company’s in-force policies. See “Note 5 – (Insurance Operations0,” for more information regarding the Company’s insurance operations. The Company generates revenues primarily from the collection of premiums and invests funds in excess of those retained for claims-paying obligations and insurance operations. Other significant sources of revenue include brokerage commissions collected from reinsurers, policy fees collected from policyholders by our wholly-owned managing general agency subsidiary and payment plan fees charged to policyholders who choose to pay their premiums in installments. The consolidated financial statements have been prepared in conformity with generally accepted accounting principles in the United States of America (“U.S. GAAP”). The consolidated financial statements include the accounts of UVE and its wholly owned subsidiaries. All material intercompany balances and transactions have been eliminated in consolidation. 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. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. The Company’s primary areas of estimate are the recognition of premium revenues, liabilities for unpaid losses and loss adjustment expenses, provision for premium deficiency and reinsurance. Actual results could differ from those estimates. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | NOTE 2 – SIGNIFICANT ACCOUNTING POLICIES The significant accounting policies followed by the Company are summarized as follows: Cash and Cash Equivalents. The Company includes in cash equivalents all short-term, highly liquid investments that are readily convertible to known amounts of cash and have an original maturity of three months or less. These amounts are carried at cost, which approximates fair value. The Company excludes any net negative cash balances from cash and cash equivalents that the Company has with any single financial institution. These amounts represent outstanding checks not yet presented to the financial institution and are reclassified to liabilities and presented as book overdraft in the Company’s Consolidated Balance Sheets. Restricted Cash and Cash Equivalents. The Company classifies amounts of cash and cash equivalents that are restricted in terms of their use and withdrawal separately on the face the Consolidated Balance Sheets. See “— ,” for a discussion of the nature of the restrictions. Investment Securities, Available for Sale . Investment securities available for sale consist of fixed maturities, equity securities and short-term investments with maturities of greater than three months. Investment securities available for sale are recorded at fair value on the consolidated balance sheet. Unrealized gains and losses on securities available for sale are excluded from earnings and reported as a component of other comprehensive income, net of related deferred taxes until reclassified to earnings upon the consummation of sales transaction with an unrelated third party or when the decline in fair value is deemed other than temporary. The assessment of whether the impairment of a security’s fair value is other than temporary is performed using a portfolio review as well as a case-by-case review considering a wide range of factors. There are a number of assumptions and estimates inherent in evaluating impairments and determining if they are other than temporary, including: 1) the Company’s ability and intent to hold the investment for a period of time sufficient to allow for an anticipated recovery in value; 2) the expected recoverability of principal and interest; 3) the extent and length of time to which the fair value has been less than amortized cost for fixed maturity securities or cost for equity securities and short-term investments referred to as severity and duration; 4) the financial condition, near-term and long-term prospects of the issue or issuer, including relevant industry conditions and trends, and implications of rating agency actions and offering prices referred to as credit quality; and 5) the specific reasons that a security is in a significant unrealized loss position, including market conditions which could affect liquidity. Additionally, once assumptions and estimates are made, any number of changes in facts and circumstances could cause the Company to subsequently determine that an impairment is other than temporary, including: 1) general economic conditions that are worse than previously forecasted or that have a greater adverse effect on a particular issuer or industry sector than originally estimated; 2) changes in the facts and circumstances related to a particular issue or issuer’s ability to meet all of its contractual obligations; and 3) changes in facts and circumstances obtained that causes a change in our ability or intent to hold a security to maturity or until it recovers in value. Management’s intent and ability to hold securities is a determination that is made at each respective balance sheet date giving consideration to factors known to management for each individual issuer of securities such as credit quality and other publicly available information. Gains and losses realized on the disposition of investment securities available for sale are determined on the FIFO basis and credited or charged to income. Premium and discount on investment securities are amortized and accreted using the interest method and charged or credited to investment income. Investment Real Estate. Investment real estate is recorded at cost less accumulated depreciation. Depreciation is calculated on a straight-line basis over the estimated useful life of the assets. Investment real estate is evaluated for impairment when events or circumstances indicate the carrying value may not be recoverable Derivatives. Derivatives were held in the Company’s trading portfolio and were reported at fair value with changes in their value reported as unrealized gains or losses until exercised, sold or upon expiration at which time the gain or loss was recognized as a realized gain or loss. The premium received for a written call option was recorded as a liability until the option was either exercised or expired. If the option was exercised by the holder, the Company recognizes the premium received by adjusting the amount of the realized gain or loss on the underlying security by the amount of the option premium received. If the option expired or otherwise terminated, the premium received was recognized as a component of realized gains or losses. All derivatives held in the Company’s trading portfolio were liquidated during the first quarter of 2013 . Premiums Receivable. Generally, premiums are collected prior to providing risk coverage, minimizing the Company’s exposure to credit risk. The Company performs a policy level evaluation to determine the extent the premiums receivable balance exceeds the unearned premiums balance. The Company then ages this exposure to establish an allowance for doubtful accounts based on prior experience. As of December 31, 2015 and 2014, the Company had recorded allowances for doubtful accounts in the amounts of $344 thousand and $357 thousand, respectively. Property and Equipment. Property and equipment is recorded at cost less accumulated depreciation. Depreciation is provided on the straight-line basis over the estimated useful life of the assets. Estimated useful life of all property and equipment ranges from three to twenty-seven-and-one-half years. Expenditures for improvements are capitalized and depreciated over the remaining useful life of the asset. Routine repairs and maintenance are expensed as incurred. Website development costs are capitalized and amortized over their estimated useful life. The Company reviews its property and equipment annually and whenever changes in circumstances indicate that the carrying amount may not be recoverable. Leases. The Company has operating leases that are subject to annual increases and amortizes the scheduled annual rental increases over the term of the leases. Recognition of Premium Revenues. The Company recognizes revenue when realized or realizable and earned. Property and liability premiums are recognized as revenue on a pro rata basis over the policy term. The portion of premiums that will be earned in the future is deferred and reported as unearned premiums. The Company believes that its revenue recognition policies conform to U.S. GAAP. In the event policyholders cancel their policies, unearned premiums represent amounts that the Insurance Entities would refund policyholders. Accordingly, the Company determines unearned premiums by calculating the pro rata amount that would be due to the policyholders at a given point in time based upon the premiums owed over the life of each policy. Recognition of Commission Revenue and Policy Fees . Commission revenue generated from agency operations and the Managing General Agent (MGA)’s policy fee on all new and renewal insurance policies are recognized as income upon policy inception. Brokerage commission revenue earned on ceded reinsurance is recognized over the term of the reinsurance agreements. Recognition of Policyholder Payment Plan Fee Revenue. The Company offers its policyholders the option of paying their policy premiums in full at inception or in two or four installment payments. The Company charges fees to its policyholders that elect to pay their premium in installments and records such fees as revenue when the policyholder makes the installment payment election and the Company bills the fees to the policyholder. These fees are included in Other Revenue in the Company’s Consolidated Statements of Income. Deferred Policy Acquisition Costs . Certain costs incurred in connection with the successful acquisition and renewal of insurance business are deferred and amortized over the terms of the policies to which they are related. A portion of reinsurance ceding commissions received are deferred and amortized over the effective period of the related insurance policies. Deferred policy acquisition costs and deferred ceding commissions are netted for balance sheet presentation purposes. Goodwill. Goodwill arising from the acquisition of a business is initially measured at cost and not subject to amortization. We assess goodwill for potential impairments at the end of each fiscal year, or during the year if an event or other circumstance indicates that we may not be able to recover the carrying amount of the asset. Goodwill is included under Other Assets in the Consolidated Balance Sheets. Insurance Liabilities . Unpaid losses and loss adjustment expenses (“LAE”) are provided for as claims are incurred. The provision for unpaid losses and loss adjustment expenses includes: (1) the accumulation of individual case estimates for claims and claim adjustment expenses reported prior to the close of the accounting period; (2) estimates for unreported claims based on industry data; and (3) estimates of expenses for investigating and adjusting claims based on the experience of the Company and the industry. Inherent in the estimates of ultimate claims are expected trends in claim severity, frequency and other factors that may vary as claims are settled. The amount of uncertainty in the estimates for casualty coverage is significantly affected by such factors as the amount of claims experience relative to the development period, knowledge of the actual facts and circumstances and the amount of insurance risk retained. In addition, the Company’s policyholders are currently concentrated in South Florida, which is periodically subject to adverse weather conditions, such as hurricanes and tropical storms. The methods for making such estimates and for establishing the resulting liability are periodically reviewed, and any adjustments are reflected in current earnings. Provision for Premium Deficiency . It is the Company’s policy to evaluate and recognize losses on insurance contracts when estimated future claims and maintenance costs under a group of existing contracts will exceed anticipated future premiums. No accruals for premium deficiency were considered necessary as of December 31, 2015 and 2014. Reinsurance . In the normal course of business, the Company seeks to reduce the risk of loss that may arise from catastrophes or other events that cause unfavorable underwriting results by reinsuring (ceding) certain levels of risk in various areas of exposure with other insurance enterprises or reinsurers. The Company remains responsible for insured losses in the event of the failure of any reinsurer to make payments otherwise due to the Company. Amounts recoverable from reinsurers are estimated in a manner consistent with the provisions of the reinsurance agreement and consistent with the establishment of the liability of the Company. Allowances are established for amounts deemed uncollectible if any. Income Taxes . Income tax provisions are based on the asset and liability method. Deferred federal and state income taxes have been provided for temporary differences between the tax basis of assets and liabilities and their reported amounts in the consolidated financial statements, net of valuation allowance if any. The Company reviews its deferred tax assets for recoverability. Income (Loss) Per Share of Common Stock . Basic earnings per share is computed by dividing the Company’s net income (loss) available to common stockholders, by the weighted-average number of shares of Common Stock outstanding during the period. Diluted earnings per share is computed by dividing the Company’s net income (loss) by the weighted average number of shares of Common Stock outstanding during the period and the impact of all dilutive potential common shares, primarily preferred stock, unvested shares and options. The dilutive impact of stock options and unvested shares is determined by applying the treasury stock method and the dilutive impact of the preferred stock is determined by applying the “if converted” method. Fair Value Measurements . The Company’s policy is to record transfers of assets and liabilities, if any, between Level 1 and Level 2 at their fair values as of the end of each reporting period, consistent with the date of the determination of fair value. Share-based Compensation. The Company accounts for share-based compensation based on the estimated grant-date fair value. The Company recognizes these compensation costs in general and administrative expenses and generally amortizes them on a straight-line basis over the requisite service period of the award, which is the vesting term. Individual tranches of performance-based awards are amortized separately since the vesting of each tranche is subject to independent annual measures. The fair value of stock option awards are estimated using the Black-Scholes option pricing model with the grant-date assumptions discussed in “— .” The fair value of the restricted share grants are determined based on the market price on the date of grant. Statutory Accounting. UPCIC and APPCIC prepare statutory financial statements in conformity with accounting practices prescribed or permitted by the Florida Office of Insurance Regulation (the “FLOIR”). The FLOIR requires that insurance companies domiciled in Florida prepare their statutory financial statements in accordance with the Manual, as modified by the FLOIR. Accordingly, the admitted assets, liabilities and capital and surplus of UPCIC and APPCIC as of December 31, 2015 and 2014 and the results of operations and cash flows, for the years ended December 31, 2015, 2014 and 2013, have been determined in accordance with statutory accounting principles, but adjusted to U.S. GAAP for purposes of these financial statements. The statutory accounting principles are designed primarily to demonstrate the ability to meet obligations to policyholders and claimants and, consequently, differ in some respects from U.S. GAAP. New Accounting Pronouncements 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. |
Investments
Investments | 12 Months Ended |
Dec. 31, 2015 | |
Investments Debt And Equity Securities [Abstract] | |
Investments | NOTE 3 – INVESTMENTS 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): December 31, 2015 Cost or Gross Gross Amortized Unrealized Unrealized Cost Gains Losses Fair Value Fixed Maturities: U.S. government obligations and agencies $ 126,209 $ — $ (867 ) $ 125,342 Corporate bonds 126,421 137 (1,041 ) 125,517 Mortgage-backed and asset-backed securities 151,328 97 (1,265 ) 150,160 Redeemable preferred stock 9,665 429 (29 ) 10,065 Other 5,000 — (1 ) 4,999 Equity Securities: Common stock 10,991 15 (244 ) 10,762 Mutual funds 35,221 5 (3,774 ) 31,452 Short-term investments 25,011 10 — 25,021 Total $ 489,846 $ 693 $ (7,221 ) $ 483,318 December 31, 2014 Cost or Gross Gross Amortized Unrealized Unrealized Cost Gains Losses Fair Value Fixed Maturities: U.S. government obligations and agencies $ 120,627 $ 38 $ (627 ) $ 120,038 Corporate bonds 120,025 171 (364 ) 119,832 Mortgage-backed and asset-backed securities 107,589 136 (502 ) 107,223 Redeemable preferred stock 6,700 165 (9 ) 6,856 Equity Securities: Common stock 331 4 (65 ) 270 Mutual funds 21,296 — (1,924 ) 19,372 Short-term investments 50,000 — (10 ) 49,990 Total $ 426,568 $ 514 $ (3,501 ) $ 423,581 The following table provides the credit quality of investment securities with contractual maturities or the issuer of such securities as of the dates presented (in thousands): December 31, 2015 December 31, 2014 (1) % of Total % of Total Comparable Ratings Fair Value Fair Value Fair Value Fair Value AAA $ 103,097 23.4 % $ 39,657 9.8 % AA 189,600 43.0 % 220,693 54.8 % A 83,850 19.0 % 83,734 20.7 % BBB 41,408 9.4 % 47,003 11.6 % BB and Below 4,261 1.0 % 3,401 0.8 % No Rating Available 18,888 4.2 % 9,451 2.3 % Total $ 441,104 100.0 % $ 403,939 100.0 % (1) The credit ratings in the table above have been reclassified from the prior periods’ consolidated financial statements to conform to the current periods’ presentation. For investment securities where no credit rating was previously available, the credit rating of the issuer of such security is disclosed in the table above, where applicable. The tables above include comparable credit quality ratings by Standard and Poor’s Rating Services, Inc., Moody’s Investors Service, Inc. and Fitch Ratings, Inc. 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): December 31, 2015 December 31, 2014 Cost or Cost or Amortized Amortized Cost Fair Value Cost Fair Value Mortgage-backed securities: Agency $ 74,353 $ 73,854 $ 64,905 $ 64,619 Non-agency 10,430 10,183 8,053 7,987 Asset-backed securities: Auto loan receivables 29,883 29,712 16,551 16,556 Credit card receivables 32,225 31,985 13,481 13,457 Other receivables 4,437 4,426 4,599 4,604 Total $ 151,328 $ 150,160 $ 107,589 $ 107,223 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): December 31, 2015 Less Than 12 Months 12 Months or Longer Number of Unrealized Number of Unrealized Issues Fair Value Losses Issues Fair Value Losses Fixed maturities: U.S. government obligations and agencies 10 $ 121,912 $ (690 ) 2 $ 3,429 $ (177 ) Corporate bonds 101 90,717 (927 ) 6 4,789 (114 ) Mortgage-backed and asset-backed securities 51 118,743 (974 ) 6 13,902 (291 ) Redeemable preferred stock 5 764 (29 ) — — — Other 1 4,999 (1 ) — — — Equity securities: Common stock 3 8,690 (148 ) 2 93 (96 ) Mutual funds 3 13,192 (374 ) 1 7,867 (3,400 ) Total 174 $ 359,017 $ (3,143 ) 17 $ 30,080 $ (4,078 ) December 31, 2014 Less Than 12 Months 12 Months or Longer Number of Unrealized Number of Unrealized Issues Fair Value Losses Issues Fair Value Losses Fixed maturities: U.S. government obligations and agencies 3 $ 27,341 $ (55 ) 4 $ 34,050 $ (572 ) Corporate bonds 67 58,271 (238 ) 12 15,105 (126 ) Mortgage-backed and asset-backed securities 20 48,335 (273 ) 5 16,842 (229 ) Redeemable preferred stock 12 1,153 (9 ) — — — Equity securities: Common stock 2 87 (20 ) 2 117 (45 ) Mutual funds 2 10,514 (97 ) 1 8,859 (1,827 ) Short-term investments 2 37,490 (10 ) — — — Total 108 183,191 (702 ) 24 74,973 (2,799 ) At December 31, 2015, we held fixed maturity, equity securities and short-term investments 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, equity securities and short-term investments, 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 December 31, 2015 are other than temporary. The following table presents the amortized cost and fair value of investments with contractual maturities as of the date presented (in thousands): December 31, 2015 Cost or Amortized Cost Fair Value Due in one year or less $ 57,230 $ 57,214 Due after one year through five years 222,963 221,403 Due after five years through ten years 1,460 1,349 Due after ten years 4,119 4,229 Mortgage-backed and asset-backed securities 151,328 150,160 Perpetual maturity securities 6,534 6,749 Total $ 443,634 $ 441,104 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 periods presented (in thousands): Year Ended December 31, 2015 2014 Sales proceeds (fair value) $ 92,335 $ 181,134 Gross realized gains $ 1,553 $ 6,205 Gross realized losses $ (493 ) $ (578 ) The following table presents the components of net investment income, comprised primarily of interest and dividends, for the periods presented (in thousands): Year Ended December 31, 2015 2014 2013 Fixed maturities $ 5,642 $ 3,329 $ 1,420 Equity securities 1,143 988 1,982 Short-term investments 246 46 — Other (1) 409 83 148 Total investment income 7,440 4,446 3,550 Less: Investment expenses (2) (2,285 ) (2,071 ) (1,622 ) Net investment (expense) income $ 5,155 $ 2,375 $ 1,928 (1) Includes interest earned on cash and cash equivalents and restricted cash and cash equivalents. Also includes investment income earned on real estate investments. (2) Includes bank fees, investment accounting and advisory fees, and expenses associated with real estate investments. Investment Real Estate Investment real estate consisted of the following as of the dates presented (in thousands): December 31, 2015 December 31, 2014 Investment real estate $ 6,220 $ — Less: Accumulated depreciation (103 ) — Investment real estate, net $ 6,117 $ — Trading Portfolio 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 provides the effect of trading activities on the Company’s results of operations for the periods presented by type of instrument and by line item in the Consolidated Statements of Income (in thousands): Year Ended December 31, 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 | 12 Months Ended |
Dec. 31, 2015 | |
Insurance [Abstract] | |
Reinsurance | NOTE 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 1st of each year. The Company’s current reinsurance program consists of catastrophe excess of loss 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 eliminated the quota share ceded by UPCIC to its reinsurers beginning with the reinsurance program effective June 1, 2015. Under the quota share contracts that were effective June 1, 2014 through May 31, 2015, the quota share ceded by UPCIC to its reinsurers was 30%. By eliminating the quota share, the Company expects to increase its profitability by retaining all premiums. The elimination of the quota share also decreases the amount of losses and LAE that may be ceded by UPCIC and effectively increases the amount of risk retained by UPCIC and the Company. The elimination of the quota share also eliminates ceding commissions earned from the Company’s quota share reinsurer during the contract term and eliminates deferred ceding commissions, netted against deferred policy acquisition costs. The following table presents quota-share cession rates by reinsurance program and the years they were in effect: Reinsurance Program Cession Rate June 2011 - May 2012 50% June 2012 - May 2013 45% June 2013 - May 2014 45% June 2014 - May 2015 30% June 2015 - May 2016 0% Amounts recoverable from reinsurers are estimated in a manner consistent with the terms of 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. Ceding commissions received in connection with quota share reinsurance are deferred and netted against deferred 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 December 31, 2015 Standard and Poor's Moody's Due from as of AM Best Rating Investors December 31, Reinsurer Company Services Service, Inc. 2015 2014 Everest Reinsurance Company A+ A+ A1 $ — $ 16,780 Florida Hurricane Catastrophe Fund n/a n/a n/a 42,086 31,870 Odyssey Reinsurance Company A A- A3 18,742 136,339 Total (1) $ 60,828 $ 184,989 (1) Amounts represent prepaid reinsurance premiums, reinsurance receivables, and net recoverables for paid and unpaid losses, including incurred but not reported reserves, loss adjustment expenses, and offsetting reinsurance payables. n/a No rating available, because entity is not rated. The Company’s reinsurance arrangements had the following effect on certain items in the Consolidated Statements of Income for the periods presented (in thousands): For the year ended December 31, 2015 Losses and Loss Premiums Premiums Adjustment Written Earned Expenses Direct $ 883,409 $ 836,792 $ 214,491 Ceded (256,961 ) (332,793 ) (26,752 ) Net $ 626,448 $ 503,999 $ 187,739 For the year ended December 31, 2014 Losses and Loss Premiums Premiums Adjustment Written Earned Expenses Direct $ 789,577 $ 777,317 $ 199,181 Ceded (399,730 ) (450,440 ) (75,906 ) Net $ 389,847 $ 326,877 $ 123,275 For the year ended December 31, 2013 Losses and Loss Premiums Premiums Adjustment Written Earned Expenses Direct $ 783,894 $ 788,477 $ 216,852 Ceded (522,116 ) (520,822 ) (108,237 ) Net $ 261,778 $ 267,655 $ 108,615 The following prepaid reinsurance premiums and reinsurance recoverable and receivable are reflected in the Consolidated Balance Sheets as of the dates presented (in thousands): As of December 31, 2015 2014 Prepaid reinsurance premiums $ 114,673 $ 190,505 Reinsurance recoverable on unpaid losses and LAE $ 13,540 $ 47,350 Reinsurance recoverable on paid losses 9,313 7,837 Reinsurance receivable, net 353 7,468 Reinsurance recoverable and receivable $ 23,206 $ 62,655 |
Insurance Operations
Insurance Operations | 12 Months Ended |
Dec. 31, 2015 | |
Insurance [Abstract] | |
Insurance Operations | NOTE 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): For the years ended December 31, 2015 2014 2013 DPAC, beginning of year $ 54,603 $ 54,099 $ 54,431 Capitalized Costs 116,954 108,072 109,981 Amortization of DPAC (111,538 ) (107,568 ) (110,313 ) DPAC, end of year $ 60,019 $ 54,603 $ 54,099 DRCC, beginning of year $ 28,943 $ 38,200 $ 37,149 Ceding Commissions Written (5,276 ) 64,810 89,679 Earned Ceding Commissions (23,667 ) (74,067 ) (88,628 ) DRCC, end of year $ — $ 28,943 $ 38,200 DPAC (DRCC), net, beginning of year $ 25,660 $ 15,899 $ 17,282 Capitalized Costs, net 122,230 43,262 20,302 Amortization of DPAC (DRCC), net (87,871 ) (33,501 ) (21,685 ) DPAC (DRCC), net, end of year $ 60,019 $ 25,660 $ 15,899 Liability for Unpaid Losses and Loss Adjustment Expenses The Insurance Entities establish liabilities for unpaid losses and loss adjustment expenses on reported and unreported claims of insured losses. These liability estimates are based on known facts and interpretation of factors such as claim payment patterns, loss payments, pending levels of unpaid claims, product mix and industry experience. The establishment of appropriate liabilities, including liabilities for catastrophes, is an inherently uncertain process. Management regularly updates its estimates as new facts become known and further events occur which may impact the resolution of unsettled claims. The level of catastrophe loss experienced in any year cannot be predicted and could be material to results of operations and financial position. The Company’s policyholders are concentrated in South Florida, which is periodically subject to adverse weather conditions, such as hurricanes and tropical storms. During the twelve-month periods ended December 31, 2015, 2014 and 2013, the Company did not experience any significant effects from catastrophic events. Management continuously evaluates alternative business strategies to effectively manage the Company’s exposure to catastrophe losses, including the maintenance of catastrophic reinsurance coverage as discussed in “— Note 4 (Reinsurance) Management believes that the liabilities for claims and claims expense as of December 31, 2015 are appropriately established in the aggregate and adequate to cover the ultimate cost of reported and unreported claims arising from losses which had occurred by that date. However, if losses exceeded direct loss reserve estimates there could be a material adverse effect on the Company’s financial statements. Also, if there are regulatory initiatives, legislative enactments or case law precedents which change the basis for policy coverage, in any of these events, there could be an effect on direct loss reserve estimates having a material adverse effect on the Company’s financial statements. Set forth in the following table is the change in liability for unpaid losses and LAE for the periods presented (in thousands): Year Ended December 31, 2015 2014 2013 Balance at beginning of year $ 134,353 $ 159,222 $ 193,241 Less: Reinsurance recoverable (47,350 ) (68,584 ) (81,415 ) Net balance at beginning of period 87,003 90,638 111,826 Incurred (recovered) related to: Current year 188,040 124,011 111,560 Prior years (301 ) (736 ) (2,945 ) Total incurred 187,739 123,275 108,615 Paid related to: Current year 123,952 73,981 62,529 Prior years 65,490 52,929 67,274 Total paid 189,442 126,910 129,803 Net balance at end of period 85,300 87,003 90,638 Plus: Reinsurance recoverable 13,540 47,350 68,584 Balance at end of year $ 98,840 $ 134,353 $ 159,222 The Company has adjusted prior year reserves to reflect both positive and negative development trends. The Company continues to see an improvement in claim settlement rates as a result of ongoing claims department initiatives which were originally introduced in 2013. This has resulted in an accelerated claims settlement process for the majority of claim segments, particularly for the 2015 accident year. Regulatory Requirements and Restrictions The Insurance Entities are subject to regulations and standards of the FLOIR. UPCIC also is subject to regulations and standards of regulatory authorities in other states where it is licensed, although as a Florida-domiciled insurer its principal regulatory authority is the FLOIR. 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 by the Insurance Entities 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 (“UVECF”), without prior regulatory approval is limited by the provisions of Florida Statutes. 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. In accordance with Florida Statutes, and based on the calculations performed by the Company as of December 31, 2014, UPCIC had the capacity to pay ordinary dividends of $27.7 million during 2015. APPCIC did not have the capacity to pay ordinary dividends during 2015. For the year ended December 31, 2015, no dividends were paid from UPCIC or APPCIC to UVECF. Dividends paid to the shareholders of UVE were paid from the earnings of UVE and its non-insurance subsidiaries. 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 U.S. GAAP, and an amount representing ten percent of total liabilities for both UPCIC and APPCIC as of the dates presented (in thousands): As of December 31, 2015 2014 Ten percent of total liabilities UPCIC $ 55,928 $ 42,659 APPCIC $ 463 $ 514 Statutory capital and surplus UPCIC $ 256,987 $ 200,173 APPCIC $ 14,777 $ 14,036 As of the dates in the table above, both UPCIC and APPCIC met the capitalization requirement. UPCIC also met the capitalization requirements of the other states in which it is licensed as of December 31, 2015. UPCIC and APPCIC are also required to adhere to prescribed premium-to-capital surplus ratios and have met those requirements at such dates. Through UVECF, the Insurance Entities’ parent company, UVE recorded capital contributions for the periods presented (in thousands): For the Years Ended December 31, 2015 2014 2013 Capital Contributions $ — $ — $ — UPCIC and APPCIC are required annually to comply with the NAIC risk-based capital (“RBC”) requirements. RBC requirements prescribe a method of measuring the amount of capital appropriate for an insurance company to support its overall business operations in light of its size and risk profile. NAIC RBC requirements are used by regulators to determine appropriate regulatory actions relating to insurers who show signs of weak or deteriorating condition. As of December 31, 2015, based on calculations using the appropriate NAIC RBC formula, UPCIC’s and APPCIC’s reported total adjusted capital was in excess of the requirements. 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): As of December 31, 2015 2014 Restricted cash and cash equivalents $ 2,635 $ 2,635 Investments $ 3,876 $ 3,609 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2015 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment | NOTE 6 – PROPERTY AND EQUIPMENT Property and equipment consisted of the following as of the dates presented (in thousands): As of December 31, 2015 2014 Land $ 3,987 $ 3,987 Building 17,806 9,848 Construction in progress 241 1,427 Computers 5,118 2,303 Furniture 1,284 1,286 Automobiles and other vehicles 5,096 3,454 Software 706 653 Total cost 34,238 22,958 Less: Accumulated depreciation (7,173 ) (5,704 ) Property and equipment, net $ 27,065 $ 17,254 Depreciation and amortization was $1.9 million, $1.2 million and $1.0 million for the years ended December 31, 2015, 2014 and 2013, respectively. The following table provides realized gains (losses) on the disposal of property and equipment during the periods presented (in thousands): Year Ended December 31, 2015 2014 2013 Realized gain (loss) on disposal $ (26 ) $ (19 ) $ (10 ) |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | NOTE 7 – LONG-TERM DEBT Long-term debt consists of the following as of the dates presented (in thousands): December 31, December 31, 2015 2014 Surplus note $ 15,809 $ 17,280 Term loan 6,851 13,330 Promissory note 1,390 — Total $ 24,050 $ 30,610 Surplus Note On November 9, 2006, UPCIC entered into a $25.0 million surplus note with the State Board of Administration of Florida (the “SBA”) under Florida’s Insurance Capital Build-Up Incentive Program (the “ICBUI”). The surplus note has a twenty-year term and accrues interest, adjusted quarterly based on the 10-year Constant Maturity Treasury Index. The carrying amount of the surplus note is included in the statutory capital and surplus of UPCIC of approximately $15.8 million as of December 31, 2015. The effective interest rate paid on the surplus note was 2.21%, 2.73% and 2.21% for years ended December 31, 2015, 2014 and 2013, respectively. Any payment of principal or interest by UPCIC on the surplus note must be approved by the Commissioner of the OIR. Quarterly principal payments of $368 thousand are due through 2026. Aggregate principal payments of $1.5 million were made during each of the years ended December 31, 2015, 2014 and 2013. UPCIC is in compliance with each of the loan’s covenants as implemented by rules promulgated by the SBA. An event of default will occur under the surplus note, as amended, if UPCIC: (i) defaults in the payment of the surplus note; (ii) fails to submit quarterly filings to the FLOIR; (iii) fails to maintain at least $50 million of surplus during the term of the surplus note, except for certain situations; (iv) misuses proceeds of the surplus note; (v) makes any misrepresentations in the application for the program; (vi) pays any dividend when principal or interest payments are past due under the surplus note; or (vii) fails to maintain a level of surplus and reinsurance sufficient to cover in excess of UPCIC’s 1-in-100 year probable maximum loss as determined by a hurricane loss model accepted by the Florida Commission on Hurricane Loss Projection Methodology as certified by the FLOIR annually. To avoid a penalty rate, UPCIC must maintain either a ratio of net written premium to surplus of 2:1 or a ratio of gross written premiums to surplus of 6:1 according to a calculation method set forth in the surplus note. As of December 31, 2015, UPCIC’s net written premium to surplus ratio and gross written premium to surplus ratio were in excess of the required minimums and, therefore, UPCIC is not subject to increases in interest rates. Term Loan On May 23, 2013, UVE entered into a $20 million unsecured term loan agreement and related term note (the “Term Loan”) with RenaissanceRe Ventures Ltd. (“RenRe Ventures”). See “— Note 11 (Related Party Transactions) The Term Loan bears interest at the rate of 0.50% per annum and matures on the earlier of May 23, 2016 or the date that all principal under the Term Loan is pre-paid or deemed paid in full. The Term Loan is amortized over the three-year term and UVE may prepay the loan without penalty. Principal is payable annually on the anniversary of the closing date in three annual installments and interest is payable in arrears on the same dates as the principal payments. The Term Loan contains financial covenants and as of December 31, 2015, UVE was in compliance with such covenants. The stated interest rate of the Term Loan of 0.50% is below the Company’s borrowing rate resulting in imputed interest and an original issue discount computed by calculating the present value of the future principal and interest payments utilizing the Company’s borrowing rate. Concurrent with the establishment of the original issue discount, the Company recorded a deferred credit, a component of other liabilities and accrued expenses, for an equal amount against premium payments the Company will make in connection with a catastrophe risk-linked transaction contract entered into with RenRe on the same date and with the same maturity date as the Term Loan. The original issue discount will be amortized to interest expense over the life of the Term Loan and the deferred credit will be amortized as a reduction in insurance expense, a component of general and administrative expenses, over the life of a covered loss index swap with RenRe. The following table provides the principal amount and unamortized original issue discount of the Term Loan as of the dates presented (in thousands): As of December 31, 2015 2014 Principal amount $ 7,000 $ 14,000 Less: Unamortized discount (149 ) (670 ) Term Loan, net of unamortized discount $ 6,851 $ 13,330 Through the interest rate payment of 0.50% per annum and the amortization of the discount, the effective interest rate on the Term Loan is 5.99%. Amortization of the original issue discount is included in interest expense, a component of general and administrative expenses, in the Consolidated Statements of Income and was $521 thousand and $840 thousand for the years ended December 31, 2015 and 2014, respectively. Should UVE default on either the DB Loan (defined below) or the Term Loan, it will be prohibited from paying dividends to its shareholders. Unsecured Line of Credit On March 29, 2013, UVE entered into a revolving loan agreement and related revolving note (the “DB Loan”) with Deutsche Bank Trust Company Americas (“Deutsche Bank”), which was most recently amended in July 2015. The DB Loan makes available to UVE an unsecured line of credit in an aggregate amount not to exceed $15.0 million. Draws under the DB Loan have a maturity date of July 31, 2017 and carry an interest rate of LIBOR plus a margin of 5.50% or Deutsche Bank’s prime rate plus a margin of 3.50%, at the election of UVE. The interest rate is at the election of UVE. The DB Loan contains certain covenants and restrictions applicable while amounts are outstanding thereunder, including limitations with respect to our indebtedness, liens, distributions, mergers or dispositions of assets, organizational structure, transactions with affiliates and business activities. As of December 31, 2015, UVE was in compliance with all such covenants. UVE had not drawn any amounts under the unsecured line of credit as of December 31, 2015. Maturities The following table provides an estimate of principal payments to be made for the amounts due on the surplus note and the Term Loan as of December 31, 2015 (in thousands): 2016 $ 9,860 2017 1,471 2018 1,471 2019 1,471 2020 1,471 Thereafter 8,455 Total (1) $ 24,199 (1) Differs from amount presented in the Balance Sheet as of December 31, 2015 due to unamortized discount as presented in the table above. Interest Expense Interest expense was $1 million, $1.5 million, and $1.2 million for the years ended December 31, 2015, 2014 and 2013, respectively. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Stockholders' Equity | NOTE 8 – STOCKHOLDERS’ EQUITY Cumulative Convertible Preferred Stock As of December 31, 2015 and 2014, the Company had shares outstanding of Series A Preferred Stock. As of December 31, 2014, the Company had shares outstanding of Series M Preferred Stock and the remaining outstanding shares were retired and cancelled during 2015. Each share of Series A Preferred Stock and Series M Preferred Stock is convertible by the Company into shares of Common Stock. The following table provides certain information for each series of convertible preferred stock as of the dates presented (in thousands, except conversion factor): As of December 31, 2015 As of December 31, 2014 Series A Series M Total Series A Series M Total Shares issued and outstanding 10 — 10 10 2 12 Conversion factor 2.50 — NM 2.50 5.00 NM Common shares resulting if converted 25 — 25 25 10 35 NM – Not meaningful. The Series A Preferred Stock pays a cumulative dividend of $0.25 per share per quarter. The Company declared and paid aggregate dividends to holders of record of the Company’s Series A Preferred Stock of $10 thousand and $13 thousand for the years ended December 31, 2015 and 2014, respectively. The Series M Preferred Stock pays a cumulative dividend of $0.20 per share per year. The Company declared and paid aggregate dividends to holders of record of the Company’s Series M Preferred Stock of $0 and $400 for the years ended December 31, 2015 and 2014, respectively. In June 2015, UVE repurchased 2,000 outstanding shares of Series M Preferred Stock at a total cost of $256 thousand. The repurchase constituted all of the outstanding shares of Series M Preferred Stock and such shares were retired and cancelled. Common Stock and Contingently Redeemable Common Stock The following table summarizes the activity relating to shares of the Company’s Common Stock and Contingently Redeemable Common Stock during the periods presented (in thousands): Issued Treasury Outstanding Shares Shares Shares Balance, as of December 31, 2012 41,889 (1,018 ) 40,871 Conversion of preferred stock 389 — 389 Shares repurchased — (7,257 ) (7,257 ) Options exercised 2,330 — 2,330 Restricted stock grant 1,000 — 1,000 Shares acquired through cashless exercise (1) — (1,967 ) (1,967 ) Shares cancelled (1,967 ) 1,967 — Balance, as of December 31, 2013 43,641 (8,275 ) 35,366 Conversion of preferred stock 65 — 65 Shares repurchased — (2,392 ) (2,392 ) Treasury shares reissued and classified as contingently redeemable common stock (2) 1,000 1,000 Options exercised 1,900 — 1,900 Restricted stock grant 950 — 950 Shares acquired through cashless exercise (1) — (1,787 ) (1,787 ) Shares cancelled (1,787 ) 1,787 — Balance, as of December 31, 2014 44,769 (9,667 ) 35,102 Conversion of preferred stock — — — Shares repurchased — (748 ) (748 ) Options exercised 751 — 751 Restricted stock grant 615 — 615 Shares acquired through cashless exercise (1) — (610 ) (610 ) Shares cancelled (610 ) 610 — Balance, as of December 31, 2015 45,525 (10,415 ) 35,110 (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 (as defined in “— Note 9 (Share-Based Compensation) (2) Subsequent to December 31, 2014, contingently redeemable common stock was reclassified to common stock. In June 2015, UVE repurchased 200,000 shares of its common stock at market price from Ananke Catastrophe Investments Limited, an affiliate of Nephila Capital Ltd., in a privately negotiated transaction for a total cost of $5.1 million. During the year ended December 31, 2015, UVE repurchased an aggregate of 548,100 shares of its common stock in the open market in compliance with Rule 10b-18 under the Securities Exchange Act of 1934, as amended, at a total cost of $13.6 million. Dividends Declared The Company declared dividends on its outstanding shares of common stock to its shareholders of record as follows for the periods presented (in thousands, except per share amounts): For the year ended December 31, 2015 2014 2013 Per Share Aggregate Per Share Aggregate Per Share Aggregate Amount Amount Amount Amount Amount Amount First Quarter $ 0.12 $ 4,237 $ 0.10 $ 3,464 $ 0.08 $ 3,259 Second Quarter $ 0.12 $ 4,283 $ 0.10 $ 3,502 $ 0.08 $ 2,821 Third Quarter $ 0.12 $ 4,275 $ 0.10 $ 3,429 $ 0.10 $ 3,511 Fourth Quarter $ 0.27 $ 9,492 $ 0.25 $ 8,845 $ 0.23 $ 8,134 Applicable provisions of the Delaware General Corporation Law may affect the ability of the Company to declare and pay dividends on its Common Stock. In particular, pursuant to the Delaware General Corporation Law, a company may pay dividends out of its surplus, as defined, or out of its net profits, for the fiscal year in which the dividend is declared and/or the preceding year. Surplus is defined in the Delaware General Corporation Law to be the excess of net assets of the company over capital. Capital is defined to be the aggregate par value of shares issued. Moreover, the ability of the Company to pay dividends, if and when declared by its Board of Directors, may be restricted by regulatory limits on the amount of dividends, which the Insurance Entities are permitted to pay the Company. Restrictions limiting the payment of dividends by UVE UVE pays dividends to shareholders, which are funded by earnings on investments and distributions from the earnings of its consolidated subsidiaries. Generally, other than as disclosed above and in “— Note 7 (Long-Term Debt) Note 5 (Insurance Operations) Contingently Redeemable Common Stock On December 2, 2014, UVE sold 1,000,000 registered shares of its common stock at a price of $19.00 per share, in a privately negotiated transaction, to Ananke Catastrophe Investments Ltd. (“Ananke”), an affiliate of Nephila Capital Ltd., which is subject to certain holding period restrictions. Ananke is required to hold the shares of common stock for a minimum of six months and then may: 1) sell up to one-third during the next three-month period, 2) sell another one-third during the next three-month period and 3) sell the remaining purchased thereafter. These shares were initially subject to a repurchase obligation by UVE in the event of a payout from its loss warranty contract. See “Item 7—Management’s Discussion and Analysis of Financial Condition and Results of Operations—Overview—UVE Insurance Risk-Linked Contract.” PRO-FORMA INFORMATION CONCERNING STOCKHOLDERS’ EQUITY On February 19, 2015, the company entered into an amended agreement with Ananke to delete, in its entirety effective December 2, 2014, the provision giving rise to the redemption feature described above. This modification results in classification of the common shares in permanent equity on the date of the amendment. No consideration was exchanged with the amendment since both parties agreed that, given the remote possibility of the redemption to occur, the value of the redemption feature was de-minimis. The following table has been provided to show the pro-forma effects to equity on the consolidated balance sheet as of December 31, 2014. The following table shows the effect of unaudited pro-forma adjustments to the consolidated balance sheet as of December 31, 2014 (in thousands, except per share amounts): December 31, 2014 As Reported PRO-FORMA Adjustment Unaudited PRO-FORMA Unaudited Total assets $ 911,774 — $ 911,774 Total liabilities 692,858 — 692,858 Contingently redeemable common stock 19,000 (19,000 ) — STOCKHOLDERS' EQUITY: Cumulative convertible preferred stock, $.01 par value — — — Common stock, $.01 par value 448 — 448 Treasury shares, at cost (62,153 ) — (62,153 ) Additional paid-in capital 40,987 19,000 59,987 Accumulated other comprehensive income (loss), net of taxes (1,835 ) — (1,835 ) Retained earnings 222,469 — 222,469 Total stockholders' equity 199,916 19,000 218,916 Total liabilities, contingently redeemable common stock and stockholders' equity $ 911,774 — $ 911,774 |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Share-Based Compensation | NOTE 9 – SHARE-BASED COMPENSATION Equity Compensation Plan Under the Company’s 2009 Omnibus Incentive Plan, as amended (the “Incentive Plan”), 3,434,775 shares remained reserved for issuance and were available for new awards under the Incentive Plan as of December 31, 2015. Awards under the Incentive Plan may include incentive stock options, non-qualified stock option awards (“Stock Option”), stock appreciation rights, non-vested shares of Common Stock (“Restricted Stock”), restricted stock units, performance share or unit awards, other share-based awards and cash-based incentive awards. Awards under the Incentive Plan may be granted to employees, directors, consultants or other persons providing services to the Company or its affiliates. The Incentive Plan also provides for awards that are intended to qualify as “performance-based compensation” in order to preserve the deductibility of such compensation by the Company under Section 162(m) of the Internal Revenue Code. The following table provides certain information related to Stock Options and Restricted Stock during the year ended December 31, 2015 (in thousands, except per share data): For the year ended December 31, 2015 Stock Options Restricted Stock Weighted Weighted Average Weighted Average Exercise Aggregate Average Grant Date Number of Price per Intrinsic Remaining Number of Fair Value Options Share (1) Value Term Shares (2) per Share Outstanding as of December 31, 2014 2,405 $ 6.99 675 $ 12.40 Granted 750 23.72 615 26.04 Forfeited (60 ) 7.33 n/a n/a Exercised (751 ) 5.08 n/a n/a Vested n/a n/a (675 ) 12.40 Expired (75 ) 4.87 n/a n/a Outstanding as of December 31, 2015 2,269 $ 13.22 $ 23,351 4.01 615 $ 26.04 Exercisable as of December 31, 2015 645 $ 8.37 $ 9,554 2.58 (1) Unless otherwise specified, such as in the case of the exercise of Stock Options, the per share prices were determined using the closing price of the Company’s Common Stock as quoted on the exchanges on which the Company was listed. Shares issued upon exercise of options represent original issuances in private transactions pursuant to Section 4(2) of the Securities Act of 1933, (2) All shares outstanding as of December 31, 2015 are expected to vest. n/a Not applicable The following table provides certain information in connection with the Company’s share-based compensation arrangements for the periods presented (in thousands): Year Ended December 31, 2015 2014 2013 Compensation expense: Stock options $ 1,389 $ 675 $ 930 Restricted stock 15,997 11,667 5,487 Total $ 17,386 $ 12,342 $ 6,417 Deferred tax benefits: Stock options $ 532 $ 260 $ 359 Restricted stock 4,816 83 433 Total $ 5,348 $ 343 $ 792 Realized tax benefits: Stock options $ 5,369 $ 7,321 $ 2,365 Restricted stock — 967 374 Total $ 5,369 $ 8,288 $ 2,739 Excess tax benefits (shortfall): Stock options $ 5,310 $ 6,472 $ 418 Restricted stock — 534 (59 ) Total $ 5,310 $ 7,006 $ 359 Weighted average fair value per option or share: Stock option grants $ 6.34 $ 3.39 $ 0.79 Restricted stock grants $ 26.04 $ 12.88 $ 5.43 Intrinsic value of options exercised $ 14,734 $ 18,979 $ 6,131 Fair value of restricted stock vested $ 17,505 $ 28,350 $ 2,548 Cash received for strike price and tax withholdings $ 519 $ 73 $ — Shares acquired through cashless exercise (1) 611 1,787 1,966 Value of shares acquired through cashless exercise (1) $ 15,445 $ 26,947 $ 12,630 (1) All shares acquired represent shares tendered to cover the strike price for options and tax withholdings on the intrinsic value of options exercised or Restricted Stock vested. These shares have been cancelled by the Company. The following table provides the amount of unrecognized compensation expense as of the most recent balance sheet date and the weighted average period over which those expenses will be recorded for both Stock Options and Restricted Stock (dollars in thousands): As of December 31, 2015 Stock Restricted Options Stock Unrecognized expense $ 4,795 $ 3,433 Weighted average remaining years 2.63 0.20 Stock Options Stock Options granted by the Company generally expire between 5 to 7 years from the grant date and generally vest over a 1 to 3 year service period commencing on the grant date. The Company used the modified Black-Scholes model to estimate the fair value of employee Stock Options on the date of grant utilizing the assumptions noted below. The risk-free rate is based on the U.S. Treasury bill yield curve in effect at the time of grant for the expected term of the option. The expected term of options granted represents the period of time that the options are expected to be outstanding. Expected volatilities are based on historical volatilities of our Common Stock. The dividend yield was based on expected dividends at the time of grant. The following table provides the assumptions utilized in the Black-Scholes model for Stock Options granted during the periods presented: Year Ended December 31, 2015 2014 2013 Weighted-average risk-free interest rate 0.54 % 0.48 % 0.27 % Expected term of option in years 3.38 2.98 3.21 Weighted-average volatility 44.3 % 40.3 % 34.1 % Dividend yield 3.4 % 3.9 % 9.1 % Weighted average grant date fair value per share $ 6.34 $ 3.39 $ 0.79 Restricted Stock Grants Restricted Stock grants are awarded to certain employees in consideration for services rendered pursuant to terms of employment agreements and or to provide to those employees with a continued incentive to share in the success of the Company. Restricted Stock generally vests over a three year service period commencing on the grant date. |
Employee Benefit Plan
Employee Benefit Plan | 12 Months Ended |
Dec. 31, 2015 | |
Postemployment Benefits [Abstract] | |
Employee Benefit Plan | NOTE 10 – EMPLOYEE BENEFIT PLAN Effective January 1, 2009, the Company adopted a qualified retirement plan covering substantially all employees. It is designed to help the employees meet their financial needs during their retirement years. Eligibility for participation in the plan is generally based on employee’s date of hire or on completion of a specified period of service. Employer contributions to this plan are made in cash. The plan titled the “Universal Property & Casualty 401(K) Profit Sharing Plan and Trust” (the “401(k) Plan”) is a defined contribution plan that allows employees to defer compensation through contributions to the 401(k) Plan. The contributions are invested on the employees’ behalf, and the benefits paid to employees are based on contributions and any earnings or loss. The 401(k) Plan includes a Company contribution of 100 percent of each eligible participant’s contribution that does not exceed five percent of their compensation during the 401(k) Plan year. The Company may make additional profit-sharing contributions. However, no additional profit-sharing contribution was made during the years ended December 31, 2015, 2014 and 2013. The Company accrued for aggregate contributions of approximately $682 thousand, $599 thousand and $709 thousand to the 401(k) Plan during the years ended December 31, 2015, 2014 and 2013, respectively. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | NOTE 11 – 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, provided 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 Company and SPC Global RE Advisors LLC terminated the consulting agreement on September 18, 2015 by mutual consent. The following table provides payments made by the Company to related parties for the periods presented (in thousands): Year Ended December 31, 2015 2014 2013 Downes and Associates $ — $ — $ 477 SPC Global RE Advisors LLC $ 90 $ 120 $ 68 There were no amounts due to SPC Global RE Advisors LLC as of December 31, 2015 and 2014, respectively. Payments due to Downes and Associates and SPC Global RE Advisors LLC were generally made in the month the services were provided. RenRe currently is, and has been, a participant in the Company’s reinsurance programs. On May 23, 2013, the Company entered into a series of contracts with RenRe and its affiliate, RenRe Ventures. As discussed in “— Note 7 (Long-Term Debt) |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 12 – INCOME TAXES Significant components of the income tax provision are as follows for the periods presented (in thousands): For the years ended December 31, 2015 2014 2013 Current: Federal $ 61,830 $ 47,245 $ 28,508 State and local 7,402 7,877 5,708 Total current expense (benefit) 69,232 55,122 34,216 Deferred: Federal (775 ) (152 ) 7,917 State and local 82 (354 ) (554 ) Total deferred expense (benefit) (693 ) (506 ) 7,363 Income tax expense $ 68,539 $ 54,616 $ 41,579 The following table reconciles the statutory federal income tax rate to the Company’s effective tax rate for the periods presented (in thousands): For the years ended December 31, 2015 2014 2013 Expected provision at federal statutory tax rate 35.0 % 35.0 % 35.0 % Increases (decreases) resulting from: Disallowed meals & entertainment 0.2 % 0.4 % 0.4 % Disallowed compensation 1.1 % 4.2 % 2.3 % State income tax, net of federal tax benefit 3.4 % 3.6 % 3.6 % Effect of change in rate 0.1 % — — Other, net (0.6 %) (0.4 %) — Total income tax expense (benefit) 39.2 % 42.8 % 41.3 % Deferred income taxes represent the temporary differences between the U.S. GAAP and tax basis of the Company’s assets and liabilities. The tax effects of temporary differences are as follows as of the dates presented (in thousands): As of December 31, 2015 2014 Deferred income tax assets: Unearned premiums $ 25,082 $ 15,835 Advanced premiums 1,859 1,332 Unpaid losses and LAE 1,105 1,654 Regulatory assessments 31 111 Share-based compensation 5,535 520 Accrued wages 164 539 Allowance for uncollectible receivables 214 138 Additional tax basis of securities 51 53 Capital loss carryforwards 850 918 Other comprehensive income 2,521 1,152 Total deferred income tax assets 37,412 22,252 Deferred income tax liabilities: Deferred policy acquisition costs, net (22,969 ) (9,898 ) Prepaid expenses (456 ) (504 ) Other (75 ) — Total deferred income tax liabilities (23,500 ) (10,402 ) Net deferred income tax asset $ 13,912 $ 11,850 At each balance sheet date, management assesses the need to establish a valuation allowance that reduces deferred tax assets when it is more likely than not that all, or some portion, of the deferred tax assets will not be realized. A valuation allowance would be based on all available information including the Company’s assessment of uncertain tax positions and projections of future taxable income from each tax-paying component in each jurisdiction, principally derived from business plans and available tax planning strategies. There are no valuation allowances as of December 31, 2015. The deferred tax asset balance is analyzed regularly by management. Based on these analyses, the Company has determined that its deferred tax asset is recoverable. Projections of future taxable income or gains incorporate several assumptions of future business and operations that are apt to differ from actual experience. If, in the future, the Company’s assumptions and estimates that resulted in the forecast of future taxable income or gains for each tax-paying component prove to be incorrect, a valuation allowance may be required. The Company has adopted ASC 740-10-05, Accounting for Uncertainty in Income Taxes, which clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements. ASC 740 provides a threshold for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. The Company’s policy is to classify interest and penalties related to unrecognized tax positions in its provision for income taxes. As of December 31, 2015, 2014 and 2013, we have determined that no uncertain tax liabilities are required. The Company filed a consolidated federal income tax return for the fiscal years ended December 31, 2014, 2013 and 2012 and intends to file the same for the year ended December 31, 2015. The tax allocation agreement between the Company and the Insurance Entities provide that they will incur income taxes based on a computation of taxes as if they were stand-alone taxpayers. The computations are made utilizing the financial statements of the Insurance Entities prepared on a statutory basis of accounting and prior to consolidating entries which include the conversion of certain balances and transactions of the statutory financial statements to a U.S. GAAP basis. During 2015, the Company amended its 2010 federal tax return which resulted in a decrease to the 2013 Capital Loss carryforward of approximately $5.6 million. The Company had subsequently amended its 2009 federal tax return to carryback its 2012 Capital Loss carryforward resulting in a refund of approximately $5.7 million. The Company files its tax returns as prescribed by the tax laws of the jurisdictions in which it operates. The Company’s 2012 through 2014 tax years are still subject to examination in the U.S. Various state jurisdiction tax years remain open to examination. The Company received notice from the IRS Joint Committee on Taxation that it has completed its consideration of the audit relating to the loss carryback of realized losses from securities sold during 2012 and applied to 2009. The IRS Joint Committee on Taxation has taken no exception to the conclusion reached by the Internal Revenue Service, the result of which yielded no material change. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | NOTE 13 – 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): Year Ended December 31, 2015 2014 2013 Numerator for EPS: Net income $ 106,484 $ 72,988 $ 58,977 Less: Preferred stock dividends (10 ) (13 ) (29 ) Income available to common stockholders $ 106,474 $ 72,975 $ 58,948 Denominator for EPS: Weighted average common shares outstanding 34,799 33,569 35,866 Plus: Assumed conversion of share-based compensation (1) 1,056 1,535 1,531 Assumed conversion of preferred stock 29 46 379 Weighted average diluted common shares outstanding 35,884 35,150 37,776 Basic earnings per common share $ 3.06 $ 2.17 $ 1.64 Diluted earnings per common share $ 2.97 $ 2.08 $ 1.56 Weighted average number of antidilutive shares 311 64 518 (1) Represents the dilutive effect of unvested Restricted Stock and unexercised Stock Options. |
Other Comprehensive Income (Los
Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Other Comprehensive Income (Loss) | NOTE 14 – OTHER COMPREHENSIVE INCOME (LOSS) The following table provides the components of other comprehensive income (loss) on a pretax and after-tax basis for the periods presented (in thousands): Year Ended December 31, 2015 2014 2013 Pre-tax Tax After-tax Pre-tax Tax After-tax Pre-tax Tax After-tax Net unrealized gains (losses) on investments available for sale arising during the period $ (2,480 ) $ (963 ) $ (1,517 ) $ 3,252 $ 1,255 $ 1,997 $ 685 $ 264 $ 421 Less: Amounts reclassified from accumulated other comprehensive income (loss) (1,060 ) (406 ) (654 ) (5,627 ) (2,171 ) (3,456 ) (1,297 ) (500 ) (797 ) Net current period other comprehensive income (loss) $ (3,540 ) $ (1,369 ) $ (2,171 ) $ (2,375 ) $ (916 ) $ (1,459 ) $ (612 ) $ (236 ) $ (376 ) The following table provides the reclassifications out of accumulated other comprehensive income for the periods presented (in thousands): Amounts Reclassified from Accumulated Other Comprehensive Income Details about Accumulated Other Year Ended December 31, Affected Line Item in the Statement Comprehensive Income Components 2015 2014 2013 Where Net Income is Presented Unrealized gains (losses) on investments available for sale $ 1,060 $ 5,627 $ 1,297 Net realized gains (losses) on investments (406 ) (2,171 ) (500 ) Income taxes, current $ 654 $ 3,456 $ 797 Net of tax |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 15 – COMMITMENTS AND CONTINGENCIES Operating Leases and Other The Company and its subsidiaries are lessees under various operating leases for real estate and equipment. The following table provides future minimum rental payments required under the non-cancelable operating leases as of the date presented (in thousands): As of December 31, 2015 2016 $ 195 2017 133 2018 127 2019 64 Total $ 519 Total rental expense was $121 thousand, $753 thousand and $423 thousand in 2015, 2014 and 2013, respectively. On December 2, 2014, UVE entered into a letter agreement with Ananke that calls for a minimum annual spend of $5 million towards covered loss index swaps during the period from June 1, 2016 through May 31, 2025. Litigation Certain lawsuits have been filed against the Company. These lawsuits generally involve matters related to the claims aspect of the Company’s business. We contest liability and/or the amount of damages as appropriate in each pending matter. In accordance with applicable accounting guidance, we establish an accrued liability for legal matters when those matters present loss contingencies which are both probable and estimable. Legal proceedings are subject to many uncertain factors that generally cannot be predicted with assurance, and we may be exposed to losses in excess of any amounts accrued. We currently estimate that the reasonably possible losses for legal proceedings, whether in excess of a related accrued liability or where there is no accrued liability, and for which we are able to estimate a possible loss, are immaterial. This represents management’s estimate of possible loss with respect to these matters and is based on currently available information. This estimate of possible loss does not represent our maximum loss exposure. The legal proceedings underlying the estimate will change from time to time and actual results may vary significantly from current estimates. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | NOTE 16 – FAIR VALUE MEASUREMENTS U.S. 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. U.S. 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. U.S. 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 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. 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. Short-term investments: Comprise investment securities subject to remeasurement with original maturities within one year but more than three months. The primary inputs to the valuation include quoted prices for identical or similar assets in markets that are not active. Other: Comprise investment securities subject to remeasurement with original maturities beyond one year. The primary inputs to the valuation include quoted prices for identical or similar assets in markets that are not active. As required by U.S. 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 measured at fair value on a recurring basis as of the dates presented (in thousands): Fair Value Measurements As of December 31, 2015 Level 1 Level 2 Level 3 Total Fixed maturities: U.S. government obligations and agencies $ — $ 125,342 $ — $ 125,342 Corporate bonds — 125,517 — 125,517 Mortgage-backed and asset-backed securities — 150,160 — 150,160 Redeemable preferred stock — 10,065 — 10,065 Other — 4,999 — 4,999 Equity securities: Common stock 10,762 — — 10,762 Mutual funds 31,452 — — 31,452 Short-term investments — 25,021 — 25,021 Total assets accounted for at fair value $ 42,214 $ 441,104 $ — $ 483,318 Fair Value Measurements As of December 31, 2014 Level 1 Level 2 Level 3 Total Fixed maturities: U.S. government obligations and agencies $ — $ 120,038 $ — $ 120,038 Corporate bonds — 119,832 — 119,832 Mortgage-backed and asset-backed securities — 107,223 — 107,223 Redeemable preferred stock — 6,856 — 6,856 Equity securities: Common stock 270 — — 270 Mutual funds 19,372 — — 19,372 Short-term investments (1) — 37,490 — 37,490 Total assets accounted for at fair value $ 19,642 $ 391,439 $ — $ 411,081 (1) Excludes $12.5 million of certificates of deposit not subject to remeasurement. The Company utilizes third-party independent pricing services that provide a price quote for each fixed maturity, equity security and short-term investment. 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): As of December 31, 2015 2014 (Level 3) (Level 3) Carrying Estimated Carrying Estimated value fair value value fair value Liabilities (debt): Surplus note $ 15,809 $ 14,166 $ 17,280 $ 14,951 Term loan $ 6,851 $ 6,851 $ 13,330 $ 13,330 Promissory note $ 1,390 $ 1,390 $ — $ — 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 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. The fair value of the promissory note is not materially different than its carrying value. |
Quarterly Results for 2015 and
Quarterly Results for 2015 and 2014 | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Results for 2015 and 2014 | NOTE 17 – QUARTERLY RESULTS FOR 2015 AND 2014 (UNAUDITED) The following table provides a summary of quarterly results for the periods presented (in thousands except per share data): First Second Third Fourth Quarter Quarter Quarter Quarter For the year ended December 31, 2015 Net premiums earned $ 94,360 $ 112,888 $ 146,153 $ 150,598 Investment income 862 1,207 1,307 1,779 Total revenues 103,810 123,591 157,043 162,100 Total expenses 65,787 82,371 109,143 114,220 Net income 22,330 24,704 30,298 29,152 Basic earnings per share $ 0.65 $ 0.71 $ 0.87 $ 0.84 Diluted earnings per share $ 0.62 $ 0.69 $ 0.84 $ 0.82 For the year ended December 31, 2014 Net premiums earned $ 63,807 $ 73,362 $ 94,288 $ 95,420 Investment income 518 412 644 801 Total revenues 74,305 86,989 103,500 104,482 Total expenses 51,188 56,580 66,348 67,556 Net income 13,549 17,126 21,341 20,972 Basic earnings per share $ 0.41 $ 0.50 $ 0.64 $ 0.63 Diluted earnings per share $ 0.38 $ 0.49 $ 0.61 $ 0.59 The improvement in the fourth quarter results for 2015 compared to 2014 includes an increase in revenues of $57.6 million offset by an increase in operating expenses of $46.7 million. The primary driver behind these increases was organic growth in, and outside of Florida and the elimination of quota-share reinsurance in June 2015. The Company also benefited from an overall decrease in the cost of certain reinsurance. The effective tax rate for the fourth quarter of 2015 decreased compared to the same period in 2014 primarily as a result of a reduction in non-deductible compensation. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | NOTE 18 – 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 consolidated financial statements as of December 31, 2015. On January 14, 2016, the Company declared a dividend of $0.14 per share on its outstanding common stock payable on March 2, 2016, to shareholders of record on February 18, 2016. |
Schedule II - Condensed Financi
Schedule II - Condensed Financial Information of Registrant | 12 Months Ended |
Dec. 31, 2015 | |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |
Schedule II - Condensed Financial Information of Registrant | SCHEDULE II – CONDENSED FINANCIAL INFORMATION OF REGISTRANT Universal Insurance Holdings, Inc. had no long term obligations, guarantees or material contingencies as of December 31, 2015 and 2014. The following summarizes the major categories of the parent company’s financial statements (in thousands, except per share data): CONDENSED BALANCE SHEETS As of December 31, 2015 2014 ASSETS Cash and cash equivalents $ 2,046 $ 14,890 Investments in subsidiaries and undistributed earnings 291,793 216,656 Fixed maturities, at fair value 2,980 2,967 Equity maturities, at fair value 551 627 Income taxes recoverable 5,420 5,675 Deferred income taxes 13,912 11,850 Other assets 358 1,040 Total assets $ 317,060 $ 253,705 LIABILITIES, CONTINGENTLY REDEEMABLE COMMON STOCK AND STOCKHOLDERS' EQUITY LIABILITIES: Accounts payable $ — $ 169 Income taxes payable — 1,799 Long-term debt 6,851 13,330 Other accrued expenses 17,117 19,491 Total liabilities 23,968 34,789 Contingently redeemable common stock — 19,000 Issued shares - 0 and 1,000 Outstanding shares - 0 and 1,000 STOCKHOLDERS' EQUITY: Cumulative convertible preferred stock, $.01 par value — — Authorized shares - 1,000 Issued shares - 10 and 12 Outstanding shares - 10 and 12 Minimum liquidation preference - $9.99 and $8.49 per share Common stock, $.01 par value 455 448 Authorized shares - 55,000 Issued shares - 45,525 and 43,769 Outstanding shares - 35,110 and 34,102 Treasury shares, at cost - 10,415 and 9,667 (80,802 ) (62,153 ) Additional paid-in capital 70,789 40,987 Accumulated other comprehensive income (loss), net of taxes (4,006 ) (1,835 ) Retained earnings 306,656 222,469 Total stockholders' equity 293,092 199,916 Total liabilities, contingently redeemable common stock and stockholders' equity $ 317,060 $ 253,705 See accompanying notes to condensed financial statements CONDENSED STATEMENTS OF INCOME For the Years Ended December 31, 2015 2014 2013 REVENUES Net investment income (expense) $ 22 $ (23 ) $ 207 Net realized gains (losses) on investments 66 625 (2,947 ) Net change in unrealized gains (losses) on investments — — 1,625 Management fee 140 121 134 Total premiums earned and other revenues 228 723 (981 ) OPERATING COSTS AND EXPENSES General and administrative expenses 48,056 39,062 32,476 Total operating cost and expenses 48,056 39,062 32,476 LOSS BEFORE INCOME TAXES AND EQUITY IN NET EARNINGS OF SUBSIDIARIES (47,828 ) (38,339 ) (33,457 ) Benefit from income taxes (17,495 ) (16,403 ) (13,834 ) LOSS BEFORE EQUITY IN NET EARNINGS OF SUBSIDIARIES (30,333 ) (21,936 ) (19,623 ) Equity in net income of subsidiaries 136,817 94,924 78,600 CONSOLIDATED NET INCOME $ 106,484 $ 72,988 $ 58,977 See accompanying notes to condensed financial statements CONDENSED STATEMENTS OF CASH FLOWS For the Years Ended December 31, 2015 2014 2013 Cash flows from operating activities Net Income $ 106,484 $ 72,988 $ 58,977 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Equity in net income of subsidiaries (136,817 ) (94,924 ) (78,600 ) Distribution of income from subsidiaries 58,224 55,805 26,898 Depreciation 4 2 — Amortization of share-based compensation 17,386 12,342 6,417 Amortization of original issue discount on debt 521 840 601 Accretion of deferred credit (521 ) (840 ) (601 ) Net realized (gains) losses on investments (66 ) (625 ) 2,947 Net change in unrealized (gains) losses on investments — — (1,625 ) Deferred income taxes (693 ) 1,118 7,363 Excess tax benefits from share-based compensation (5,310 ) (7,006 ) (359 ) Other — — — Net changes in assets and liabilities relating to operating activities: Purchases of equity securities, trading — — (3,972 ) Proceeds from sale of equity securities, trading — — 16,712 Income taxes recoverable 255 2,477 (5,558 ) Income taxes payable 3,510 6,239 2,226 Other operating assets and liabilities (1,338 ) 5,752 1,347 Net cash provided by (used in) operating activities 41,639 54,168 32,773 Cash flows from investing activities: Capital contributions to subsidiaries — (5,585 ) (1,600 ) Purchases of equity securities, available for sale (1,442 ) (15,836 ) (10,357 ) Purchase of fixed maturities, available for sale — (3,000 ) (750 ) Proceeds from sales of equity securities, available for sale 1,481 26,060 — Proceeds from sales of fixed maturities, available for sale — 770 — Net cash provided by (used in) investing activities 39 2,409 (12,707 ) Cash flows from financing activities: Proceeds from borrowings — — 20,000 Repayment of debt (7,000 ) (6,000 ) — Preferred stock dividend (10 ) (13 ) (29 ) Common stock dividend (22,287 ) (19,240 ) (17,725 ) Issuance of common stock 511 73 — Purchase of treasury stock (18,649 ) (29,736 ) (32,365 ) Purchase of preferred stock (256 ) — — Proceeds received from issuance of contingently redeemable common stock — 19,000 — Payments related to tax withholding for share-based compensation (12,141 ) (17,655 ) (3,161 ) Excess tax benefits (shortfall) from share-based compensation 5,310 7,006 359 Net cash provided by (used in) financing activities (54,522 ) (46,565 ) (32,921 ) Net increase (decrease) in cash and cash equivalents (12,844 ) 10,012 (12,855 ) Cash and cash equivalents at beginning of period 14,890 4,878 17,733 Cash and cash equivalents at end of period $ 2,046 $ 14,890 $ 4,878 See accompanying notes to condensed financial statements NOTE 1 – GENERAL The financial statements of the Registrant should be read in conjunction with the consolidated financial statements in “Item 8.” Nature of Operations and Basis of Presentation Universal Insurance Holdings, Inc. (the “Company”) is a Delaware corporation incorporated in 1990. The Company is an insurance holding company whose wholly-owned subsidiaries perform all aspects of insurance underwriting, distribution and claims. Through its wholly-owned subsidiaries, including Universal Property & Casualty Insurance Company and American Platinum Property and Casualty Insurance Company, 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 generates revenues from earnings on investments and management fees. The Company also receives distributions of earnings from its insurance and non-insurance subsidiaries. Certain amounts in the prior periods’ condensed financial statements have been reclassified in order to conform to current period presentation. Such reclassifications had no effect on net income or stockholders’ equity. NOTE 2 – 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 consolidated financial statements as of December 31, 2015. On January 14, 2016, the Company declared a dividend of $0.14 per share on its outstanding common stock payable on March 2, 2016, to shareholders of record on February 18, 2016. |
Schedule V - Valuation Allowanc
Schedule V - Valuation Allowances and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2015 | |
Valuation And Qualifying Accounts [Abstract] | |
Schedule V - Valuation Allowances and Qualifying Accounts | SCHEDULE V – VALUATION ALLOWANCES AND QUALIFYING ACCOUNTS The following table summarizes activity in the Company’s allowance for doubtful accounts for the periods presented (in thousands): Additions Charges to Beginning Charges to Other Ending Balance Earnings Accounts Deductions Balance Description Year Ended December 31, 2015: Allowance for doubtful accounts $ 357 395 — 408 $ 344 Year Ended December 31, 2014: Allowance for doubtful accounts $ 446 431 — 520 $ 357 Year Ended December 31, 2013: Allowance for doubtful accounts $ 530 428 — 512 $ 446 |
Schedule VI - Supplemental Info
Schedule VI - Supplemental Information Concerning Consolidated Property and Casualty Insurance Operations | 12 Months Ended |
Dec. 31, 2015 | |
Supplemental Information For Property Casualty Insurance Underwriters [Abstract] | |
Schedule VI - Supplemental Information Concerning Consolidated Property and Casualty Insurance Operations | SCHEDULE VI – SUPPLEMENTAL INFORMATION CONCERNING CONSOLIDATED PROPERTY AND CASUALTY INSURANCE OPERATIONS The following table provides certain information related to the Company’s property and casualty operations as of, and for the periods presented (in thousands): As of December 31, For the Year Ended December 31, Reserves Incurred Incurred for Unpaid Loss and Loss and Net Losses and LAE Current LAE Prior Paid Losses Investment LAE Year Years and LAE Income 2015 $ 98,840 $ 188,040 $ (301 ) $ 189,442 $ 5,155 2014 $ 134,353 $ 124,011 $ (736 ) $ 126,910 $ 2,375 2013 $ 159,222 $ 111,560 $ (2,945 ) $ 129,803 $ 1,928 As of December 31, For the Year Ended December 31, Deferred Policy Net Net Acquisition Amortization Premiums Premiums Unearned Cost ("DPAC"), Net of DPAC, Net Written Earned Premiums 2015 $ 60,019 $ (87,871 ) $ 626,448 $ 503,999 $ 442,366 2014 $ 25,660 $ (33,501 ) $ 389,847 $ 326,877 $ 395,748 2013 $ 15,899 $ (21,685 ) $ 261,778 $ 267,655 $ 383,488 |
Nature of Operations and Basi30
Nature of Operations and Basis of Presentation (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Nature of Operations, Basis of Presentation and Consolidation | Nature of Operations, Basis of Presentation and Consolidation Universal Insurance Holdings, Inc. (“UVE”) is a Delaware corporation incorporated in 1990. UVE with its wholly-owned subsidiaries (the “Company”), is a vertically integrated insurance holding company performing all aspects of insurance underwriting, distribution and claims. Through its wholly-owned subsidiaries, Universal Property & Casualty Insurance Company (“UPCIC”) and American Platinum Property and Casualty Insurance Company (“APPCIC”), together 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 currently offered in eleven states as of December 31, 2015, including Florida, which comprises the majority of the Company’s in-force policies. See “Note 5 – (Insurance Operations0,” for more information regarding the Company’s insurance operations. The Company generates revenues primarily from the collection of premiums and invests funds in excess of those retained for claims-paying obligations and insurance operations. Other significant sources of revenue include brokerage commissions collected from reinsurers, policy fees collected from policyholders by our wholly-owned managing general agency subsidiary and payment plan fees charged to policyholders who choose to pay their premiums in installments. The consolidated financial statements have been prepared in conformity with generally accepted accounting principles in the United States of America (“U.S. GAAP”). The consolidated financial statements include the accounts of UVE and its wholly owned subsidiaries. All material intercompany balances and transactions have been eliminated in consolidation. 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. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. The Company’s primary areas of estimate are the recognition of premium revenues, liabilities for unpaid losses and loss adjustment expenses, provision for premium deficiency and reinsurance. Actual results could differ from those estimates. |
Cash and Cash Equivalents | Cash and Cash Equivalents. The Company includes in cash equivalents all short-term, highly liquid investments that are readily convertible to known amounts of cash and have an original maturity of three months or less. These amounts are carried at cost, which approximates fair value. The Company excludes any net negative cash balances from cash and cash equivalents that the Company has with any single financial institution. These amounts represent outstanding checks not yet presented to the financial institution and are reclassified to liabilities and presented as book overdraft in the Company’s Consolidated Balance Sheets. |
Restricted Cash and Cash Equivalents | Restricted Cash and Cash Equivalents. The Company classifies amounts of cash and cash equivalents that are restricted in terms of their use and withdrawal separately on the face the Consolidated Balance Sheets. See “— ,” for a discussion of the nature of the restrictions. |
Investment Securities, Available for Sale | Investment Securities, Available for Sale . Investment securities available for sale consist of fixed maturities, equity securities and short-term investments with maturities of greater than three months. Investment securities available for sale are recorded at fair value on the consolidated balance sheet. Unrealized gains and losses on securities available for sale are excluded from earnings and reported as a component of other comprehensive income, net of related deferred taxes until reclassified to earnings upon the consummation of sales transaction with an unrelated third party or when the decline in fair value is deemed other than temporary. The assessment of whether the impairment of a security’s fair value is other than temporary is performed using a portfolio review as well as a case-by-case review considering a wide range of factors. There are a number of assumptions and estimates inherent in evaluating impairments and determining if they are other than temporary, including: 1) the Company’s ability and intent to hold the investment for a period of time sufficient to allow for an anticipated recovery in value; 2) the expected recoverability of principal and interest; 3) the extent and length of time to which the fair value has been less than amortized cost for fixed maturity securities or cost for equity securities and short-term investments referred to as severity and duration; 4) the financial condition, near-term and long-term prospects of the issue or issuer, including relevant industry conditions and trends, and implications of rating agency actions and offering prices referred to as credit quality; and 5) the specific reasons that a security is in a significant unrealized loss position, including market conditions which could affect liquidity. Additionally, once assumptions and estimates are made, any number of changes in facts and circumstances could cause the Company to subsequently determine that an impairment is other than temporary, including: 1) general economic conditions that are worse than previously forecasted or that have a greater adverse effect on a particular issuer or industry sector than originally estimated; 2) changes in the facts and circumstances related to a particular issue or issuer’s ability to meet all of its contractual obligations; and 3) changes in facts and circumstances obtained that causes a change in our ability or intent to hold a security to maturity or until it recovers in value. Management’s intent and ability to hold securities is a determination that is made at each respective balance sheet date giving consideration to factors known to management for each individual issuer of securities such as credit quality and other publicly available information. Gains and losses realized on the disposition of investment securities available for sale are determined on the FIFO basis and credited or charged to income. Premium and discount on investment securities are amortized and accreted using the interest method and charged or credited to investment income. |
Investment Real Estate | Investment Real Estate. Investment real estate is recorded at cost less accumulated depreciation. Depreciation is calculated on a straight-line basis over the estimated useful life of the assets. Investment real estate is evaluated for impairment when events or circumstances indicate the carrying value may not be recoverable |
Derivatives | Derivatives. Derivatives were held in the Company’s trading portfolio and were reported at fair value with changes in their value reported as unrealized gains or losses until exercised, sold or upon expiration at which time the gain or loss was recognized as a realized gain or loss. The premium received for a written call option was recorded as a liability until the option was either exercised or expired. If the option was exercised by the holder, the Company recognizes the premium received by adjusting the amount of the realized gain or loss on the underlying security by the amount of the option premium received. If the option expired or otherwise terminated, the premium received was recognized as a component of realized gains or losses. All derivatives held in the Company’s trading portfolio were liquidated during the first quarter of 2013 . |
Premiums Receivable | Premiums Receivable. Generally, premiums are collected prior to providing risk coverage, minimizing the Company’s exposure to credit risk. The Company performs a policy level evaluation to determine the extent the premiums receivable balance exceeds the unearned premiums balance. The Company then ages this exposure to establish an allowance for doubtful accounts based on prior experience. As of December 31, 2015 and 2014, the Company had recorded allowances for doubtful accounts in the amounts of $344 thousand and $357 thousand, respectively. |
Property and Equipment | Property and Equipment. Property and equipment is recorded at cost less accumulated depreciation. Depreciation is provided on the straight-line basis over the estimated useful life of the assets. Estimated useful life of all property and equipment ranges from three to twenty-seven-and-one-half years. Expenditures for improvements are capitalized and depreciated over the remaining useful life of the asset. Routine repairs and maintenance are expensed as incurred. Website development costs are capitalized and amortized over their estimated useful life. The Company reviews its property and equipment annually and whenever changes in circumstances indicate that the carrying amount may not be recoverable. |
Leases | Leases. The Company has operating leases that are subject to annual increases and amortizes the scheduled annual rental increases over the term of the leases. |
Recognition of Premium Revenues | Recognition of Premium Revenues. The Company recognizes revenue when realized or realizable and earned. Property and liability premiums are recognized as revenue on a pro rata basis over the policy term. The portion of premiums that will be earned in the future is deferred and reported as unearned premiums. The Company believes that its revenue recognition policies conform to U.S. GAAP. In the event policyholders cancel their policies, unearned premiums represent amounts that the Insurance Entities would refund policyholders. Accordingly, the Company determines unearned premiums by calculating the pro rata amount that would be due to the policyholders at a given point in time based upon the premiums owed over the life of each policy. |
Recognition of Commission Revenue and Policy Fees | Recognition of Commission Revenue and Policy Fees . Commission revenue generated from agency operations and the Managing General Agent (MGA)’s policy fee on all new and renewal insurance policies are recognized as income upon policy inception. Brokerage commission revenue earned on ceded reinsurance is recognized over the term of the reinsurance agreements. |
Recognition of Policyholder Payment Plan Fee Revenue | Recognition of Policyholder Payment Plan Fee Revenue. The Company offers its policyholders the option of paying their policy premiums in full at inception or in two or four installment payments. The Company charges fees to its policyholders that elect to pay their premium in installments and records such fees as revenue when the policyholder makes the installment payment election and the Company bills the fees to the policyholder. These fees are included in Other Revenue in the Company’s Consolidated Statements of Income. |
Deferred Policy Acquisition Costs | Deferred Policy Acquisition Costs . Certain costs incurred in connection with the successful acquisition and renewal of insurance business are deferred and amortized over the terms of the policies to which they are related. A portion of reinsurance ceding commissions received are deferred and amortized over the effective period of the related insurance policies. Deferred policy acquisition costs and deferred ceding commissions are netted for balance sheet presentation purposes. |
Goodwill | Goodwill. Goodwill arising from the acquisition of a business is initially measured at cost and not subject to amortization. We assess goodwill for potential impairments at the end of each fiscal year, or during the year if an event or other circumstance indicates that we may not be able to recover the carrying amount of the asset. Goodwill is included under Other Assets in the Consolidated Balance Sheets. |
Insurance Liabilities | Insurance Liabilities . Unpaid losses and loss adjustment expenses (“LAE”) are provided for as claims are incurred. The provision for unpaid losses and loss adjustment expenses includes: (1) the accumulation of individual case estimates for claims and claim adjustment expenses reported prior to the close of the accounting period; (2) estimates for unreported claims based on industry data; and (3) estimates of expenses for investigating and adjusting claims based on the experience of the Company and the industry. Inherent in the estimates of ultimate claims are expected trends in claim severity, frequency and other factors that may vary as claims are settled. The amount of uncertainty in the estimates for casualty coverage is significantly affected by such factors as the amount of claims experience relative to the development period, knowledge of the actual facts and circumstances and the amount of insurance risk retained. In addition, the Company’s policyholders are currently concentrated in South Florida, which is periodically subject to adverse weather conditions, such as hurricanes and tropical storms. The methods for making such estimates and for establishing the resulting liability are periodically reviewed, and any adjustments are reflected in current earnings. |
Provision for Premium Deficiency | Provision for Premium Deficiency . It is the Company’s policy to evaluate and recognize losses on insurance contracts when estimated future claims and maintenance costs under a group of existing contracts will exceed anticipated future premiums. No accruals for premium deficiency were considered necessary as of December 31, 2015 and 2014. |
Reinsurance | Reinsurance . In the normal course of business, the Company seeks to reduce the risk of loss that may arise from catastrophes or other events that cause unfavorable underwriting results by reinsuring (ceding) certain levels of risk in various areas of exposure with other insurance enterprises or reinsurers. The Company remains responsible for insured losses in the event of the failure of any reinsurer to make payments otherwise due to the Company. Amounts recoverable from reinsurers are estimated in a manner consistent with the provisions of the reinsurance agreement and consistent with the establishment of the liability of the Company. Allowances are established for amounts deemed uncollectible if any. |
Income Taxes | Income Taxes . Income tax provisions are based on the asset and liability method. Deferred federal and state income taxes have been provided for temporary differences between the tax basis of assets and liabilities and their reported amounts in the consolidated financial statements, net of valuation allowance if any. The Company reviews its deferred tax assets for recoverability. |
Income (Loss) Per Share of Common Stock | Income (Loss) Per Share of Common Stock . Basic earnings per share is computed by dividing the Company’s net income (loss) available to common stockholders, by the weighted-average number of shares of Common Stock outstanding during the period. Diluted earnings per share is computed by dividing the Company’s net income (loss) by the weighted average number of shares of Common Stock outstanding during the period and the impact of all dilutive potential common shares, primarily preferred stock, unvested shares and options. The dilutive impact of stock options and unvested shares is determined by applying the treasury stock method and the dilutive impact of the preferred stock is determined by applying the “if converted” method. |
Fair Value Measurements | Fair Value Measurements . The Company’s policy is to record transfers of assets and liabilities, if any, between Level 1 and Level 2 at their fair values as of the end of each reporting period, consistent with the date of the determination of fair value. |
Share-based Compensation | Share-based Compensation. The Company accounts for share-based compensation based on the estimated grant-date fair value. The Company recognizes these compensation costs in general and administrative expenses and generally amortizes them on a straight-line basis over the requisite service period of the award, which is the vesting term. Individual tranches of performance-based awards are amortized separately since the vesting of each tranche is subject to independent annual measures. The fair value of stock option awards are estimated using the Black-Scholes option pricing model with the grant-date assumptions discussed in “— .” The fair value of the restricted share grants are determined based on the market price on the date of grant. |
Statutory Accounting | Statutory Accounting. UPCIC and APPCIC prepare statutory financial statements in conformity with accounting practices prescribed or permitted by the Florida Office of Insurance Regulation (the “FLOIR”). The FLOIR requires that insurance companies domiciled in Florida prepare their statutory financial statements in accordance with the Manual, as modified by the FLOIR. Accordingly, the admitted assets, liabilities and capital and surplus of UPCIC and APPCIC as of December 31, 2015 and 2014 and the results of operations and cash flows, for the years ended December 31, 2015, 2014 and 2013, have been determined in accordance with statutory accounting principles, but adjusted to U.S. GAAP for purposes of these financial statements. The statutory accounting principles are designed primarily to demonstrate the ability to meet obligations to policyholders and claimants and, consequently, differ in some respects from U.S. GAAP. |
New Accounting Pronouncements | New Accounting Pronouncements 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. |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Investments Debt And Equity Securities [Abstract] | |
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): December 31, 2015 Cost or Gross Gross Amortized Unrealized Unrealized Cost Gains Losses Fair Value Fixed Maturities: U.S. government obligations and agencies $ 126,209 $ — $ (867 ) $ 125,342 Corporate bonds 126,421 137 (1,041 ) 125,517 Mortgage-backed and asset-backed securities 151,328 97 (1,265 ) 150,160 Redeemable preferred stock 9,665 429 (29 ) 10,065 Other 5,000 — (1 ) 4,999 Equity Securities: Common stock 10,991 15 (244 ) 10,762 Mutual funds 35,221 5 (3,774 ) 31,452 Short-term investments 25,011 10 — 25,021 Total $ 489,846 $ 693 $ (7,221 ) $ 483,318 December 31, 2014 Cost or Gross Gross Amortized Unrealized Unrealized Cost Gains Losses Fair Value Fixed Maturities: U.S. government obligations and agencies $ 120,627 $ 38 $ (627 ) $ 120,038 Corporate bonds 120,025 171 (364 ) 119,832 Mortgage-backed and asset-backed securities 107,589 136 (502 ) 107,223 Redeemable preferred stock 6,700 165 (9 ) 6,856 Equity Securities: Common stock 331 4 (65 ) 270 Mutual funds 21,296 — (1,924 ) 19,372 Short-term investments 50,000 — (10 ) 49,990 Total $ 426,568 $ 514 $ (3,501 ) $ 423,581 |
Schedule of Credit Quality of Investment Securities With Contractual Maturities or The Issuer of Such Securities | The following table provides the credit quality of investment securities with contractual maturities or the issuer of such securities as of the dates presented (in thousands): December 31, 2015 December 31, 2014 (1) % of Total % of Total Comparable Ratings Fair Value Fair Value Fair Value Fair Value AAA $ 103,097 23.4 % $ 39,657 9.8 % AA 189,600 43.0 % 220,693 54.8 % A 83,850 19.0 % 83,734 20.7 % BBB 41,408 9.4 % 47,003 11.6 % BB and Below 4,261 1.0 % 3,401 0.8 % No Rating Available 18,888 4.2 % 9,451 2.3 % Total $ 441,104 100.0 % $ 403,939 100.0 % (1) The credit ratings in the table above have been reclassified from the prior periods’ consolidated financial statements to conform to the current periods’ presentation. For investment securities where no credit rating was previously available, the credit rating of the issuer of such security is disclosed in the table above, where applicable. The tables above include comparable credit quality ratings by Standard and Poor’s Rating Services, Inc., Moody’s Investors Service, Inc. and Fitch Ratings, Inc. |
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): December 31, 2015 December 31, 2014 Cost or Cost or Amortized Amortized Cost Fair Value Cost Fair Value Mortgage-backed securities: Agency $ 74,353 $ 73,854 $ 64,905 $ 64,619 Non-agency 10,430 10,183 8,053 7,987 Asset-backed securities: Auto loan receivables 29,883 29,712 16,551 16,556 Credit card receivables 32,225 31,985 13,481 13,457 Other receivables 4,437 4,426 4,599 4,604 Total $ 151,328 $ 150,160 $ 107,589 $ 107,223 |
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): December 31, 2015 Less Than 12 Months 12 Months or Longer Number of Unrealized Number of Unrealized Issues Fair Value Losses Issues Fair Value Losses Fixed maturities: U.S. government obligations and agencies 10 $ 121,912 $ (690 ) 2 $ 3,429 $ (177 ) Corporate bonds 101 90,717 (927 ) 6 4,789 (114 ) Mortgage-backed and asset-backed securities 51 118,743 (974 ) 6 13,902 (291 ) Redeemable preferred stock 5 764 (29 ) — — — Other 1 4,999 (1 ) — — — Equity securities: Common stock 3 8,690 (148 ) 2 93 (96 ) Mutual funds 3 13,192 (374 ) 1 7,867 (3,400 ) Total 174 $ 359,017 $ (3,143 ) 17 $ 30,080 $ (4,078 ) December 31, 2014 Less Than 12 Months 12 Months or Longer Number of Unrealized Number of Unrealized Issues Fair Value Losses Issues Fair Value Losses Fixed maturities: U.S. government obligations and agencies 3 $ 27,341 $ (55 ) 4 $ 34,050 $ (572 ) Corporate bonds 67 58,271 (238 ) 12 15,105 (126 ) Mortgage-backed and asset-backed securities 20 48,335 (273 ) 5 16,842 (229 ) Redeemable preferred stock 12 1,153 (9 ) — — — Equity securities: Common stock 2 87 (20 ) 2 117 (45 ) Mutual funds 2 10,514 (97 ) 1 8,859 (1,827 ) Short-term investments 2 37,490 (10 ) — — — Total 108 183,191 (702 ) 24 74,973 (2,799 ) |
Amortized Cost and Fair Value of Investments With Contractual Maturities | The following table presents the amortized cost and fair value of investments with contractual maturities as of the date presented (in thousands): December 31, 2015 Cost or Amortized Cost Fair Value Due in one year or less $ 57,230 $ 57,214 Due after one year through five years 222,963 221,403 Due after five years through ten years 1,460 1,349 Due after ten years 4,119 4,229 Mortgage-backed and asset-backed securities 151,328 150,160 Perpetual maturity securities 6,534 6,749 Total $ 443,634 $ 441,104 |
Summary of Securities Available for Sale | The following table provides certain information related to securities available for sale during the periods presented (in thousands): Year Ended December 31, 2015 2014 Sales proceeds (fair value) $ 92,335 $ 181,134 Gross realized gains $ 1,553 $ 6,205 Gross realized losses $ (493 ) $ (578 ) |
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): Year Ended December 31, 2015 2014 2013 Fixed maturities $ 5,642 $ 3,329 $ 1,420 Equity securities 1,143 988 1,982 Short-term investments 246 46 — Other (1) 409 83 148 Total investment income 7,440 4,446 3,550 Less: Investment expenses (2) (2,285 ) (2,071 ) (1,622 ) Net investment (expense) income $ 5,155 $ 2,375 $ 1,928 (1) Includes interest earned on cash and cash equivalents and restricted cash and cash equivalents. Also includes investment income earned on real estate investments. (2) Includes bank fees, investment accounting and advisory fees, and expenses associated with real estate investments. |
Schedule of Real Estate Investment | Investment real estate consisted of the following as of the dates presented (in thousands): December 31, 2015 December 31, 2014 Investment real estate $ 6,220 $ — Less: Accumulated depreciation (103 ) — Investment real estate, net $ 6,117 $ — |
Effect of Trading Activities by Type of Instrument and by Line Item in Condensed Consolidated Statements of Income | The following table provides the effect of trading activities on the Company’s results of operations for the periods presented by type of instrument and by line item in the Consolidated Statements of Income (in thousands): Year Ended December 31, 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) | 12 Months Ended |
Dec. 31, 2015 | |
Insurance [Abstract] | |
Summary of Quota-Share Cession Rates by Reinsurance Program | The following table presents quota-share cession rates by reinsurance program and the years they were in effect: Reinsurance Program Cession Rate June 2011 - May 2012 50% June 2012 - May 2013 45% June 2013 - May 2014 45% June 2014 - May 2015 30% June 2015 - May 2016 0% |
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 December 31, 2015 Standard and Poor's Moody's Due from as of AM Best Rating Investors December 31, Reinsurer Company Services Service, Inc. 2015 2014 Everest Reinsurance Company A+ A+ A1 $ — $ 16,780 Florida Hurricane Catastrophe Fund n/a n/a n/a 42,086 31,870 Odyssey Reinsurance Company A A- A3 18,742 136,339 Total (1) $ 60,828 $ 184,989 (1) Amounts represent prepaid reinsurance premiums, reinsurance receivables, and net recoverables for paid and unpaid losses, including incurred but not reported reserves, loss adjustment expenses, and offsetting reinsurance payables. n/a No rating available, because entity is not rated. |
Summary of Effects of Reinsurance Arrangements | The Company’s reinsurance arrangements had the following effect on certain items in the Consolidated Statements of Income for the periods presented (in thousands): For the year ended December 31, 2015 Losses and Loss Premiums Premiums Adjustment Written Earned Expenses Direct $ 883,409 $ 836,792 $ 214,491 Ceded (256,961 ) (332,793 ) (26,752 ) Net $ 626,448 $ 503,999 $ 187,739 For the year ended December 31, 2014 Losses and Loss Premiums Premiums Adjustment Written Earned Expenses Direct $ 789,577 $ 777,317 $ 199,181 Ceded (399,730 ) (450,440 ) (75,906 ) Net $ 389,847 $ 326,877 $ 123,275 For the year ended December 31, 2013 Losses and Loss Premiums Premiums Adjustment Written Earned Expenses Direct $ 783,894 $ 788,477 $ 216,852 Ceded (522,116 ) (520,822 ) (108,237 ) Net $ 261,778 $ 267,655 $ 108,615 |
Prepaid Reinsurance Premiums and Reinsurance Recoverable and Receivable | The following prepaid reinsurance premiums and reinsurance recoverable and receivable are reflected in the Consolidated Balance Sheets as of the dates presented (in thousands): As of December 31, 2015 2014 Prepaid reinsurance premiums $ 114,673 $ 190,505 Reinsurance recoverable on unpaid losses and LAE $ 13,540 $ 47,350 Reinsurance recoverable on paid losses 9,313 7,837 Reinsurance receivable, net 353 7,468 Reinsurance recoverable and receivable $ 23,206 $ 62,655 |
Insurance Operations (Tables)
Insurance Operations (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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): For the years ended December 31, 2015 2014 2013 DPAC, beginning of year $ 54,603 $ 54,099 $ 54,431 Capitalized Costs 116,954 108,072 109,981 Amortization of DPAC (111,538 ) (107,568 ) (110,313 ) DPAC, end of year $ 60,019 $ 54,603 $ 54,099 DRCC, beginning of year $ 28,943 $ 38,200 $ 37,149 Ceding Commissions Written (5,276 ) 64,810 89,679 Earned Ceding Commissions (23,667 ) (74,067 ) (88,628 ) DRCC, end of year $ — $ 28,943 $ 38,200 DPAC (DRCC), net, beginning of year $ 25,660 $ 15,899 $ 17,282 Capitalized Costs, net 122,230 43,262 20,302 Amortization of DPAC (DRCC), net (87,871 ) (33,501 ) (21,685 ) DPAC (DRCC), net, end of year $ 60,019 $ 25,660 $ 15,899 |
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): Year Ended December 31, 2015 2014 2013 Balance at beginning of year $ 134,353 $ 159,222 $ 193,241 Less: Reinsurance recoverable (47,350 ) (68,584 ) (81,415 ) Net balance at beginning of period 87,003 90,638 111,826 Incurred (recovered) related to: Current year 188,040 124,011 111,560 Prior years (301 ) (736 ) (2,945 ) Total incurred 187,739 123,275 108,615 Paid related to: Current year 123,952 73,981 62,529 Prior years 65,490 52,929 67,274 Total paid 189,442 126,910 129,803 Net balance at end of period 85,300 87,003 90,638 Plus: Reinsurance recoverable 13,540 47,350 68,584 Balance at end of year $ 98,840 $ 134,353 $ 159,222 |
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 U.S. GAAP, and an amount representing ten percent of total liabilities for both UPCIC and APPCIC as of the dates presented (in thousands): As of December 31, 2015 2014 Ten percent of total liabilities UPCIC $ 55,928 $ 42,659 APPCIC $ 463 $ 514 Statutory capital and surplus UPCIC $ 256,987 $ 200,173 APPCIC $ 14,777 $ 14,036 |
Recorded Capital Contributions | Through UVECF, the Insurance Entities’ parent company, UVE recorded capital contributions for the periods presented (in thousands): For the Years Ended December 31, 2015 2014 2013 Capital Contributions $ — $ — $ — |
Assets Held by Insurance Regulators | The following table represents assets held by insurance regulators as of the dates presented (in thousands): As of December 31, 2015 2014 Restricted cash and cash equivalents $ 2,635 $ 2,635 Investments $ 3,876 $ 3,609 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property Plant And Equipment [Abstract] | |
Components of Property and Equipment | Property and equipment consisted of the following as of the dates presented (in thousands): As of December 31, 2015 2014 Land $ 3,987 $ 3,987 Building 17,806 9,848 Construction in progress 241 1,427 Computers 5,118 2,303 Furniture 1,284 1,286 Automobiles and other vehicles 5,096 3,454 Software 706 653 Total cost 34,238 22,958 Less: Accumulated depreciation (7,173 ) (5,704 ) Property and equipment, net $ 27,065 $ 17,254 |
Realized Gain (Losses) on the Disposal of Property and Equipment | The following table provides realized gains (losses) on the disposal of property and equipment during the periods presented (in thousands): Year Ended December 31, 2015 2014 2013 Realized gain (loss) on disposal $ (26 ) $ (19 ) $ (10 ) |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Schedule of Long-Term Debt | Long-term debt consists of the following as of the dates presented (in thousands): December 31, December 31, 2015 2014 Surplus note $ 15,809 $ 17,280 Term loan 6,851 13,330 Promissory note 1,390 — Total $ 24,050 $ 30,610 |
Estimate of Principal Payments to Be Made for the Amount Due on the Surplus Note | The following table provides an estimate of principal payments to be made for the amounts due on the surplus note and the Term Loan as of December 31, 2015 (in thousands): 2016 $ 9,860 2017 1,471 2018 1,471 2019 1,471 2020 1,471 Thereafter 8,455 Total (1) $ 24,199 (1) Differs from amount presented in the Balance Sheet as of December 31, 2015 due to unamortized discount as presented in the table above. |
Term Loan [Member] | |
Schedule of Long-Term Debt | The following table provides the principal amount and unamortized original issue discount of the Term Loan as of the dates presented (in thousands): As of December 31, 2015 2014 Principal amount $ 7,000 $ 14,000 Less: Unamortized discount (149 ) (670 ) Term Loan, net of unamortized discount $ 6,851 $ 13,330 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Cumulative Convertible Preferred Stock | The following table provides certain information for each series of convertible preferred stock as of the dates presented (in thousands, except conversion factor): As of December 31, 2015 As of December 31, 2014 Series A Series M Total Series A Series M Total Shares issued and outstanding 10 — 10 10 2 12 Conversion factor 2.50 — NM 2.50 5.00 NM Common shares resulting if converted 25 — 25 25 10 35 |
Activity Relating to Common Shares and Contingently Redeemable Common Shares | The following table summarizes the activity relating to shares of the Company’s Common Stock and Contingently Redeemable Common Stock during the periods presented (in thousands): Issued Treasury Outstanding Shares Shares Shares Balance, as of December 31, 2012 41,889 (1,018 ) 40,871 Conversion of preferred stock 389 — 389 Shares repurchased — (7,257 ) (7,257 ) Options exercised 2,330 — 2,330 Restricted stock grant 1,000 — 1,000 Shares acquired through cashless exercise (1) — (1,967 ) (1,967 ) Shares cancelled (1,967 ) 1,967 — Balance, as of December 31, 2013 43,641 (8,275 ) 35,366 Conversion of preferred stock 65 — 65 Shares repurchased — (2,392 ) (2,392 ) Treasury shares reissued and classified as contingently redeemable common stock (2) 1,000 1,000 Options exercised 1,900 — 1,900 Restricted stock grant 950 — 950 Shares acquired through cashless exercise (1) — (1,787 ) (1,787 ) Shares cancelled (1,787 ) 1,787 — Balance, as of December 31, 2014 44,769 (9,667 ) 35,102 Conversion of preferred stock — — — Shares repurchased — (748 ) (748 ) Options exercised 751 — 751 Restricted stock grant 615 — 615 Shares acquired through cashless exercise (1) — (610 ) (610 ) Shares cancelled (610 ) 610 — Balance, as of December 31, 2015 45,525 (10,415 ) 35,110 (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 (as defined in “— Note 9 (Share-Based Compensation) (2) Subsequent to December 31, 2014, contingently redeemable common stock was reclassified to common stock. |
Summary of Dividends Declared on its Outstanding Shares of Common Stock to its Shareholders | The Company declared dividends on its outstanding shares of common stock to its shareholders of record as follows for the periods presented (in thousands, except per share amounts): For the year ended December 31, 2015 2014 2013 Per Share Aggregate Per Share Aggregate Per Share Aggregate Amount Amount Amount Amount Amount Amount First Quarter $ 0.12 $ 4,237 $ 0.10 $ 3,464 $ 0.08 $ 3,259 Second Quarter $ 0.12 $ 4,283 $ 0.10 $ 3,502 $ 0.08 $ 2,821 Third Quarter $ 0.12 $ 4,275 $ 0.10 $ 3,429 $ 0.10 $ 3,511 Fourth Quarter $ 0.27 $ 9,492 $ 0.25 $ 8,845 $ 0.23 $ 8,134 |
Pro-Forma [Member] | |
Summary of Unaudited Pro-Forma Adjustments to Consolidated Balance Sheet | The following table shows the effect of unaudited pro-forma adjustments to the consolidated balance sheet as of December 31, 2014 (in thousands, except per share amounts): December 31, 2014 As Reported PRO-FORMA Adjustment Unaudited PRO-FORMA Unaudited Total assets $ 911,774 — $ 911,774 Total liabilities 692,858 — 692,858 Contingently redeemable common stock 19,000 (19,000 ) — STOCKHOLDERS' EQUITY: Cumulative convertible preferred stock, $.01 par value — — — Common stock, $.01 par value 448 — 448 Treasury shares, at cost (62,153 ) — (62,153 ) Additional paid-in capital 40,987 19,000 59,987 Accumulated other comprehensive income (loss), net of taxes (1,835 ) — (1,835 ) Retained earnings 222,469 — 222,469 Total stockholders' equity 199,916 19,000 218,916 Total liabilities, contingently redeemable common stock and stockholders' equity $ 911,774 — $ 911,774 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Certain Information Related to Stock Options and Restricted Stock | The following table provides certain information related to Stock Options and Restricted Stock during the year ended December 31, 2015 (in thousands, except per share data): For the year ended December 31, 2015 Stock Options Restricted Stock Weighted Weighted Average Weighted Average Exercise Aggregate Average Grant Date Number of Price per Intrinsic Remaining Number of Fair Value Options Share (1) Value Term Shares (2) per Share Outstanding as of December 31, 2014 2,405 $ 6.99 675 $ 12.40 Granted 750 23.72 615 26.04 Forfeited (60 ) 7.33 n/a n/a Exercised (751 ) 5.08 n/a n/a Vested n/a n/a (675 ) 12.40 Expired (75 ) 4.87 n/a n/a Outstanding as of December 31, 2015 2,269 $ 13.22 $ 23,351 4.01 615 $ 26.04 Exercisable as of December 31, 2015 645 $ 8.37 $ 9,554 2.58 (1) Unless otherwise specified, such as in the case of the exercise of Stock Options, the per share prices were determined using the closing price of the Company’s Common Stock as quoted on the exchanges on which the Company was listed. Shares issued upon exercise of options represent original issuances in private transactions pursuant to Section 4(2) of the Securities Act of 1933, (2) All shares outstanding as of December 31, 2015 are expected to vest. n/a Not applicable |
Certain Information Regarding Company's Share-Based Compensation | The following table provides certain information in connection with the Company’s share-based compensation arrangements for the periods presented (in thousands): Year Ended December 31, 2015 2014 2013 Compensation expense: Stock options $ 1,389 $ 675 $ 930 Restricted stock 15,997 11,667 5,487 Total $ 17,386 $ 12,342 $ 6,417 Deferred tax benefits: Stock options $ 532 $ 260 $ 359 Restricted stock 4,816 83 433 Total $ 5,348 $ 343 $ 792 Realized tax benefits: Stock options $ 5,369 $ 7,321 $ 2,365 Restricted stock — 967 374 Total $ 5,369 $ 8,288 $ 2,739 Excess tax benefits (shortfall): Stock options $ 5,310 $ 6,472 $ 418 Restricted stock — 534 (59 ) Total $ 5,310 $ 7,006 $ 359 Weighted average fair value per option or share: Stock option grants $ 6.34 $ 3.39 $ 0.79 Restricted stock grants $ 26.04 $ 12.88 $ 5.43 Intrinsic value of options exercised $ 14,734 $ 18,979 $ 6,131 Fair value of restricted stock vested $ 17,505 $ 28,350 $ 2,548 Cash received for strike price and tax withholdings $ 519 $ 73 $ — Shares acquired through cashless exercise (1) 611 1,787 1,966 Value of shares acquired through cashless exercise (1) $ 15,445 $ 26,947 $ 12,630 (1) All shares acquired represent shares tendered to cover the strike price for options and tax withholdings on the intrinsic value of options exercised or Restricted Stock vested. These shares have been cancelled by the Company. |
Unrecognized Compensation Expense and Weighted Average Period | The following table provides the amount of unrecognized compensation expense as of the most recent balance sheet date and the weighted average period over which those expenses will be recorded for both Stock Options and Restricted Stock (dollars in thousands): As of December 31, 2015 Stock Restricted Options Stock Unrecognized expense $ 4,795 $ 3,433 Weighted average remaining years 2.63 0.20 |
Summary of Assumptions Utilized in the Black-Scholes Model for Stock Options Granted | The following table provides the assumptions utilized in the Black-Scholes model for Stock Options granted during the periods presented: Year Ended December 31, 2015 2014 2013 Weighted-average risk-free interest rate 0.54 % 0.48 % 0.27 % Expected term of option in years 3.38 2.98 3.21 Weighted-average volatility 44.3 % 40.3 % 34.1 % Dividend yield 3.4 % 3.9 % 9.1 % Weighted average grant date fair value per share $ 6.34 $ 3.39 $ 0.79 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |
Payments Made by Company to Related Parties | The following table provides payments made by the Company to related parties for the periods presented (in thousands): Year Ended December 31, 2015 2014 2013 Downes and Associates $ — $ — $ 477 SPC Global RE Advisors LLC $ 90 $ 120 $ 68 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Components of Income Tax Provision | Significant components of the income tax provision are as follows for the periods presented (in thousands): For the years ended December 31, 2015 2014 2013 Current: Federal $ 61,830 $ 47,245 $ 28,508 State and local 7,402 7,877 5,708 Total current expense (benefit) 69,232 55,122 34,216 Deferred: Federal (775 ) (152 ) 7,917 State and local 82 (354 ) (554 ) Total deferred expense (benefit) (693 ) (506 ) 7,363 Income tax expense $ 68,539 $ 54,616 $ 41,579 |
Reconciles Statutory Federal Income Tax Rate to Company's Effective Tax Rate | The following table reconciles the statutory federal income tax rate to the Company’s effective tax rate for the periods presented (in thousands): For the years ended December 31, 2015 2014 2013 Expected provision at federal statutory tax rate 35.0 % 35.0 % 35.0 % Increases (decreases) resulting from: Disallowed meals & entertainment 0.2 % 0.4 % 0.4 % Disallowed compensation 1.1 % 4.2 % 2.3 % State income tax, net of federal tax benefit 3.4 % 3.6 % 3.6 % Effect of change in rate 0.1 % — — Other, net (0.6 %) (0.4 %) — Total income tax expense (benefit) 39.2 % 42.8 % 41.3 % |
Deferred Income Tax Effects of Temporary Differences | Deferred income taxes represent the temporary differences between the U.S. GAAP and tax basis of the Company’s assets and liabilities. The tax effects of temporary differences are as follows as of the dates presented (in thousands): As of December 31, 2015 2014 Deferred income tax assets: Unearned premiums $ 25,082 $ 15,835 Advanced premiums 1,859 1,332 Unpaid losses and LAE 1,105 1,654 Regulatory assessments 31 111 Share-based compensation 5,535 520 Accrued wages 164 539 Allowance for uncollectible receivables 214 138 Additional tax basis of securities 51 53 Capital loss carryforwards 850 918 Other comprehensive income 2,521 1,152 Total deferred income tax assets 37,412 22,252 Deferred income tax liabilities: Deferred policy acquisition costs, net (22,969 ) (9,898 ) Prepaid expenses (456 ) (504 ) Other (75 ) — Total deferred income tax liabilities (23,500 ) (10,402 ) Net deferred income tax asset $ 13,912 $ 11,850 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Reconciles Numerator and Denominator of Basic and Diluted Earnings Per Share Computations | 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): Year Ended December 31, 2015 2014 2013 Numerator for EPS: Net income $ 106,484 $ 72,988 $ 58,977 Less: Preferred stock dividends (10 ) (13 ) (29 ) Income available to common stockholders $ 106,474 $ 72,975 $ 58,948 Denominator for EPS: Weighted average common shares outstanding 34,799 33,569 35,866 Plus: Assumed conversion of share-based compensation (1) 1,056 1,535 1,531 Assumed conversion of preferred stock 29 46 379 Weighted average diluted common shares outstanding 35,884 35,150 37,776 Basic earnings per common share $ 3.06 $ 2.17 $ 1.64 Diluted earnings per common share $ 2.97 $ 2.08 $ 1.56 Weighted average number of antidilutive shares 311 64 518 (1) Represents the dilutive effect of unvested Restricted Stock and unexercised Stock Options. |
Other Comprehensive Income (L41
Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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 pretax and after-tax basis for the periods presented (in thousands): Year Ended December 31, 2015 2014 2013 Pre-tax Tax After-tax Pre-tax Tax After-tax Pre-tax Tax After-tax Net unrealized gains (losses) on investments available for sale arising during the period $ (2,480 ) $ (963 ) $ (1,517 ) $ 3,252 $ 1,255 $ 1,997 $ 685 $ 264 $ 421 Less: Amounts reclassified from accumulated other comprehensive income (loss) (1,060 ) (406 ) (654 ) (5,627 ) (2,171 ) (3,456 ) (1,297 ) (500 ) (797 ) Net current period other comprehensive income (loss) $ (3,540 ) $ (1,369 ) $ (2,171 ) $ (2,375 ) $ (916 ) $ (1,459 ) $ (612 ) $ (236 ) $ (376 ) |
Reclassifications Out of Accumulated Other Comprehensive Income | The following table provides the reclassifications out of accumulated other comprehensive income for the periods presented (in thousands): Amounts Reclassified from Accumulated Other Comprehensive Income Details about Accumulated Other Year Ended December 31, Affected Line Item in the Statement Comprehensive Income Components 2015 2014 2013 Where Net Income is Presented Unrealized gains (losses) on investments available for sale $ 1,060 $ 5,627 $ 1,297 Net realized gains (losses) on investments (406 ) (2,171 ) (500 ) Income taxes, current $ 654 $ 3,456 $ 797 Net of tax |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Commitments And Contingencies Disclosure [Abstract] | |
Future Minimum Rental Payments Under the Non-cancelable Operating Leases | The Company and its subsidiaries are lessees under various operating leases for real estate and equipment. The following table provides future minimum rental payments required under the non-cancelable operating leases as of the date presented (in thousands): As of December 31, 2015 2016 $ 195 2017 133 2018 127 2019 64 Total $ 519 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Assets Measured 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 measured at fair value on a recurring basis as of the dates presented (in thousands): Fair Value Measurements As of December 31, 2015 Level 1 Level 2 Level 3 Total Fixed maturities: U.S. government obligations and agencies $ — $ 125,342 $ — $ 125,342 Corporate bonds — 125,517 — 125,517 Mortgage-backed and asset-backed securities — 150,160 — 150,160 Redeemable preferred stock — 10,065 — 10,065 Other — 4,999 — 4,999 Equity securities: Common stock 10,762 — — 10,762 Mutual funds 31,452 — — 31,452 Short-term investments — 25,021 — 25,021 Total assets accounted for at fair value $ 42,214 $ 441,104 $ — $ 483,318 Fair Value Measurements As of December 31, 2014 Level 1 Level 2 Level 3 Total Fixed maturities: U.S. government obligations and agencies $ — $ 120,038 $ — $ 120,038 Corporate bonds — 119,832 — 119,832 Mortgage-backed and asset-backed securities — 107,223 — 107,223 Redeemable preferred stock — 6,856 — 6,856 Equity securities: Common stock 270 — — 270 Mutual funds 19,372 — — 19,372 Short-term investments (1) — 37,490 — 37,490 Total assets accounted for at fair value $ 19,642 $ 391,439 $ — $ 411,081 (1) Excludes $12.5 million of certificates of deposit not subject to remeasurement. |
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): As of December 31, 2015 2014 (Level 3) (Level 3) Carrying Estimated Carrying Estimated value fair value value fair value Liabilities (debt): Surplus note $ 15,809 $ 14,166 $ 17,280 $ 14,951 Term loan $ 6,851 $ 6,851 $ 13,330 $ 13,330 Promissory note $ 1,390 $ 1,390 $ — $ — |
Quarterly Results for 2015 an44
Quarterly Results for 2015 and 2014 (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of Quarterly Results for the Periods Presented | The following table provides a summary of quarterly results for the periods presented (in thousands except per share data): First Second Third Fourth Quarter Quarter Quarter Quarter For the year ended December 31, 2015 Net premiums earned $ 94,360 $ 112,888 $ 146,153 $ 150,598 Investment income 862 1,207 1,307 1,779 Total revenues 103,810 123,591 157,043 162,100 Total expenses 65,787 82,371 109,143 114,220 Net income 22,330 24,704 30,298 29,152 Basic earnings per share $ 0.65 $ 0.71 $ 0.87 $ 0.84 Diluted earnings per share $ 0.62 $ 0.69 $ 0.84 $ 0.82 For the year ended December 31, 2014 Net premiums earned $ 63,807 $ 73,362 $ 94,288 $ 95,420 Investment income 518 412 644 801 Total revenues 74,305 86,989 103,500 104,482 Total expenses 51,188 56,580 66,348 67,556 Net income 13,549 17,126 21,341 20,972 Basic earnings per share $ 0.41 $ 0.50 $ 0.64 $ 0.63 Diluted earnings per share $ 0.38 $ 0.49 $ 0.61 $ 0.59 |
Nature of Operations and Basi45
Nature of Operations and Basis of Presentation - Additional Information (Detail) | Dec. 31, 2015State |
Accounting Policies [Abstract] | |
Number of states | 11 |
Significant Accounting Polici46
Significant Accounting Policies - Additional Information (Detail) | 12 Months Ended | |
Dec. 31, 2015USD ($)Installment | Dec. 31, 2014USD ($) | |
Schedule Of Significant Accounting Policies [Line Items] | ||
Maximum maturity period of highly liquid investments | 3 months | |
Allowances for doubtful accounts | $ | $ 344,000 | $ 357,000 |
Accruals for premium deficiency | $ | $ 0 | $ 0 |
Minimum [Member] | ||
Schedule Of Significant Accounting Policies [Line Items] | ||
Short-term investment maturity period | 3 months | |
Useful life of property and equipment | 3 years | |
Number of installments to pay policy premiums | Installment | 2 | |
Maximum [Member] | ||
Schedule Of Significant Accounting Policies [Line Items] | ||
Useful life of property and equipment | 27 years 6 months | |
Number of installments to pay policy premiums | Installment | 4 |
Investments - Cost or Amortized
Investments - Cost or Amortized Cost and Fair Value of Securities Available for Sale (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Schedule Of Available For Sale Securities [Line Items] | ||
Cost or Amortized Cost | $ 489,846 | $ 426,568 |
Gross Unrealized Gains | 693 | 514 |
Gross Unrealized Losses | (7,221) | (3,501) |
Fair Value | 483,318 | 423,581 |
Short-term Investments [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Cost or Amortized Cost | 25,011 | 50,000 |
Gross Unrealized Gains | 10 | |
Gross Unrealized Losses | (10) | |
Fair Value | 25,021 | 49,990 |
U.S. Government Obligations and Agencies [Member] | Fixed Maturities [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Cost or Amortized Cost | 126,209 | 120,627 |
Gross Unrealized Gains | 38 | |
Gross Unrealized Losses | (867) | (627) |
Fair Value | 125,342 | 120,038 |
Corporate Bonds [Member] | Fixed Maturities [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Cost or Amortized Cost | 126,421 | 120,025 |
Gross Unrealized Gains | 137 | 171 |
Gross Unrealized Losses | (1,041) | (364) |
Fair Value | 125,517 | 119,832 |
Mortgage-Backed and Asset-Backed Securities [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Cost or Amortized Cost | 151,328 | 107,589 |
Fair Value | 150,160 | 107,223 |
Mortgage-Backed and Asset-Backed Securities [Member] | Fixed Maturities [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Cost or Amortized Cost | 151,328 | 107,589 |
Gross Unrealized Gains | 97 | 136 |
Gross Unrealized Losses | (1,265) | (502) |
Fair Value | 150,160 | 107,223 |
Redeemable Preferred Stock [Member] | Fixed Maturities [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Cost or Amortized Cost | 9,665 | 6,700 |
Gross Unrealized Gains | 429 | 165 |
Gross Unrealized Losses | (29) | (9) |
Fair Value | 10,065 | 6,856 |
Other [Member] | Fixed Maturities [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Cost or Amortized Cost | 5,000 | |
Gross Unrealized Losses | (1) | |
Fair Value | 4,999 | |
Common Stock [Member] | Equity Securities [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Cost or Amortized Cost | 10,991 | 331 |
Gross Unrealized Gains | 15 | 4 |
Gross Unrealized Losses | (244) | (65) |
Fair Value | 10,762 | 270 |
Mutual Funds [Member] | Equity Securities [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Cost or Amortized Cost | 35,221 | 21,296 |
Gross Unrealized Gains | 5 | |
Gross Unrealized Losses | (3,774) | (1,924) |
Fair Value | $ 31,452 | $ 19,372 |
Investments - Schedule of Credi
Investments - Schedule of Credit Quality of Investment Securities With Contractual Maturities or The Issuer of Such Securities (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Schedule Of Available For Sale Securities [Line Items] | ||
Fair Value | $ 441,104 | $ 403,939 |
Percentage of Total Fair Value | 100.00% | 100.00% |
Comparable Ratings, AAA Rating [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fair Value | $ 103,097 | $ 39,657 |
Percentage of Total Fair Value | 23.40% | 9.80% |
Comparable Ratings, AA Rating [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fair Value | $ 189,600 | $ 220,693 |
Percentage of Total Fair Value | 43.00% | 54.80% |
Comparable Ratings, A Rating [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fair Value | $ 83,850 | $ 83,734 |
Percentage of Total Fair Value | 19.00% | 20.70% |
Comparable Ratings, BBB Rating [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fair Value | $ 41,408 | $ 47,003 |
Percentage of Total Fair Value | 9.40% | 11.60% |
Comparable Ratings, BB and Below Rating [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fair Value | $ 4,261 | $ 3,401 |
Percentage of Total Fair Value | 1.00% | 0.80% |
Comparable Ratings, No Rating Available [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fair Value | $ 18,888 | $ 9,451 |
Percentage of Total Fair Value | 4.20% | 2.30% |
Investments - Schedule of Amort
Investments - Schedule of Amortized Cost and Fair Value on Mortgage-Backed and Asset-Backed Securities (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Schedule Of Available For Sale Securities [Line Items] | ||
Cost or Amortized Cost | $ 489,846 | $ 426,568 |
Fair Value | 483,318 | 423,581 |
Mortgage-backed securities [Member] | Agency [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Cost or Amortized Cost | 74,353 | 64,905 |
Fair Value | 73,854 | 64,619 |
Mortgage-backed securities [Member] | Non Agency [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Cost or Amortized Cost | 10,430 | 8,053 |
Fair Value | 10,183 | 7,987 |
Asset-backed securities [Member] | Auto Loans [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Cost or Amortized Cost | 29,883 | 16,551 |
Fair Value | 29,712 | 16,556 |
Asset-backed securities [Member] | Credit Card Receivables [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Cost or Amortized Cost | 32,225 | 13,481 |
Fair Value | 31,985 | 13,457 |
Asset-backed securities [Member] | Other Receivables [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Cost or Amortized Cost | 4,437 | 4,599 |
Fair Value | 4,426 | 4,604 |
Mortgage-Backed and Asset-Backed Securities [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Cost or Amortized Cost | 151,328 | 107,589 |
Fair Value | $ 150,160 | $ 107,223 |
Investments - Summarized Fair V
Investments - Summarized Fair Value and Gross Unrealized Losses on Securities Available for Sale (Detail) $ in Thousands | Dec. 31, 2015USD ($)Security | Dec. 31, 2014USD ($)Security |
Schedule Of Available For Sale Securities [Line Items] | ||
Less than 12 months, Number of issues | Security | 174 | 108 |
Less than 12 months, Fair value | $ 359,017 | $ 183,191 |
Less than 12 months, Unrealized losses | $ (3,143) | $ (702) |
12 months or longer, Number of issues | Security | 17 | 24 |
12 months or longer, Fair value | $ 30,080 | $ 74,973 |
12 months or longer, Unrealized losses | $ (4,078) | $ (2,799) |
Short-term Investments [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Less than 12 months, Number of issues | Security | 2 | |
Less than 12 months, Fair value | $ 37,490 | |
Less than 12 months, Unrealized losses | $ (10) | |
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 | Security | 10 | 3 |
Less than 12 months, Fair value | $ 121,912 | $ 27,341 |
Less than 12 months, Unrealized losses | $ (690) | $ (55) |
12 months or longer, Number of issues | Security | 2 | 4 |
12 months or longer, Fair value | $ 3,429 | $ 34,050 |
12 months or longer, Unrealized losses | $ (177) | $ (572) |
Corporate Bonds [Member] | Fixed Maturities [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Less than 12 months, Number of issues | Security | 101 | 67 |
Less than 12 months, Fair value | $ 90,717 | $ 58,271 |
Less than 12 months, Unrealized losses | $ (927) | $ (238) |
12 months or longer, Number of issues | Security | 6 | 12 |
12 months or longer, Fair value | $ 4,789 | $ 15,105 |
12 months or longer, Unrealized losses | $ (114) | $ (126) |
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 | Security | 51 | 20 |
Less than 12 months, Fair value | $ 118,743 | $ 48,335 |
Less than 12 months, Unrealized losses | $ (974) | $ (273) |
12 months or longer, Number of issues | Security | 6 | 5 |
12 months or longer, Fair value | $ 13,902 | $ 16,842 |
12 months or longer, Unrealized losses | $ (291) | $ (229) |
Redeemable Preferred Stock [Member] | Fixed Maturities [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Less than 12 months, Number of issues | Security | 5 | 12 |
Less than 12 months, Fair value | $ 764 | $ 1,153 |
Less than 12 months, Unrealized losses | $ (29) | $ (9) |
Other [Member] | Fixed Maturities [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Less than 12 months, Number of issues | Security | 1 | |
Less than 12 months, Fair value | $ 4,999 | |
Less than 12 months, Unrealized losses | $ (1) | |
Common Stock [Member] | Equity Securities [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Less than 12 months, Number of issues | Security | 3 | 2 |
Less than 12 months, Fair value | $ 8,690 | $ 87 |
Less than 12 months, Unrealized losses | $ (148) | $ (20) |
12 months or longer, Number of issues | Security | 2 | 2 |
12 months or longer, Fair value | $ 93 | $ 117 |
12 months or longer, Unrealized losses | $ (96) | $ (45) |
Mutual Funds [Member] | Equity Securities [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Less than 12 months, Number of issues | Security | 3 | 2 |
Less than 12 months, Fair value | $ 13,192 | $ 10,514 |
Less than 12 months, Unrealized losses | $ (374) | $ (97) |
12 months or longer, Number of issues | Security | 1 | 1 |
12 months or longer, Fair value | $ 7,867 | $ 8,859 |
12 months or longer, Unrealized losses | $ (3,400) | $ (1,827) |
Investments - Amortized Cost an
Investments - Amortized Cost and Fair Value of Investments With Contractual Maturities (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Schedule Of Available For Sale Securities [Line Items] | ||
Fixed Maturities Securities Available for Sale, Due in one year or less, Amortized cost | $ 57,230 | |
Fixed Maturities Securities Available for Sale, Due after one year through five years, Amortized cost | 222,963 | |
Fixed Maturities Securities Available for Sale, Due after five years through ten years, Amortized cost | 1,460 | |
Fixed Maturities Securities Available for Sale, Due after ten years, Amortized cost | 4,119 | |
Fixed Maturities Securities Available for Sale, Perpetual Maturity, Amortized Cost | 6,534 | |
Fixed Maturities Securities Available for Sale, Amortized cost, Total | 443,634 | |
Fixed Maturities Securities Available for Sale, Due in one year or less, Fair Value | 57,214 | |
Fixed Maturities Securities Available for Sale, Due after one year through five years, Fair Value | 221,403 | |
Fixed Maturities Securities Available for Sale, Due after five years through ten years, Fair Value | 1,349 | |
Fixed Maturities Securities Available for Sale, Due after ten years, Fair Value | 4,229 | |
Fixed Maturities Securities Available for Sale, Perpetual Maturity, Fair Value | 6,749 | |
Fixed Maturities Securities Available for Sale, Fair Value, Total | 441,104 | $ 403,939 |
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 | 151,328 | |
Fixed Maturities Securities Available for Sale, Mortgage-backed Securities, Fair Value | $ 150,160 |
Investments - Summary of Securi
Investments - Summary of Securities Available for Sale (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Investments Debt And Equity Securities [Abstract] | ||
Sales proceeds (fair value) | $ 92,335 | $ 181,134 |
Gross realized gains | 1,553 | 6,205 |
Gross realized losses | $ (493) | $ (578) |
Investments - Investment Income
Investments - Investment Income (Expense) Comprised Primarily of Interest and Dividends (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Net Investment Income [Line Items] | |||||||||||
Total investment income | $ 7,440 | $ 4,446 | $ 3,550 | ||||||||
Less: Investment expenses | (2,285) | (2,071) | (1,622) | ||||||||
Net investment (expense) income | $ 1,779 | $ 1,307 | $ 1,207 | $ 862 | $ 801 | $ 644 | $ 412 | $ 518 | 5,155 | 2,375 | 1,928 |
Fixed Maturities [Member] | |||||||||||
Net Investment Income [Line Items] | |||||||||||
Investment income | 5,642 | 3,329 | 1,420 | ||||||||
Equity Securities [Member] | |||||||||||
Net Investment Income [Line Items] | |||||||||||
Investment income | 1,143 | 988 | 1,982 | ||||||||
Short-term Investments [Member] | |||||||||||
Net Investment Income [Line Items] | |||||||||||
Investment income | 246 | 46 | |||||||||
Other [Member] | |||||||||||
Net Investment Income [Line Items] | |||||||||||
Investment income | $ 409 | $ 83 | $ 148 |
Investments - Schedule of Real
Investments - Schedule of Real Estate Investment (Detail) $ in Thousands | Dec. 31, 2015USD ($) |
Real Estate Investments [Abstract] | |
Investment real estate | $ 6,220 |
Less: Accumulated depreciation | (103) |
Investment real estate, net | $ 6,117 |
Investments - Effect of Trading
Investments - Effect of Trading Activities by Type of Instrument and by Line Item in Condensed Consolidated Statements of Income (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2013USD ($) | |
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 |
Reinsurance - Additional Inform
Reinsurance - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2015 | |
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 Program Effective June One Two Thousand Fourteen [Member] | |
Effects of Reinsurance [Line Items] | |
Percentage of premium ceded | 30.00% |
Reinsurance - Summary of Quota-
Reinsurance - Summary of Quota-Share Cession Rates by Reinsurance Program (Detail) | 12 Months Ended |
Dec. 31, 2015 | |
June 2011 - May 2012 | |
Quota Share Cession Rate By Reinsurance Program [Line Items] | |
Percentage of cession rate | 50.00% |
June 2012 - May 2013 | |
Quota Share Cession Rate By Reinsurance Program [Line Items] | |
Percentage of cession rate | 45.00% |
June 2013 - May 2014 | |
Quota Share Cession Rate By Reinsurance Program [Line Items] | |
Percentage of cession rate | 45.00% |
June 2014 - May 2015 | |
Quota Share Cession Rate By Reinsurance Program [Line Items] | |
Percentage of cession rate | 30.00% |
June 2015 - May 2016 | |
Quota Share Cession Rate By Reinsurance Program [Line Items] | |
Percentage of cession rate | 0.00% |
Reinsurance - Current Ratings f
Reinsurance - Current Ratings from Rating Agencies and Unsecured Net Amounts Due from Reinsurers Whose Aggregate Balance Exceeded 3% of Stockholders' Equity (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Ceded Credit Risk [Line Items] | ||
Reinsurance unsecured amounts due from reinsurers total | $ 60,828 | $ 184,989 |
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 | 16,780 | |
Florida Hurricane Catastrophe Fund [Member] | ||
Ceded Credit Risk [Line Items] | ||
Reinsurance unsecured amounts due from reinsurers total | 42,086 | 31,870 |
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 | $ 18,742 | $ 136,339 |
Reinsurance - Reinsurance Arran
Reinsurance - Reinsurance Arrangements (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Reinsurance Disclosures [Abstract] | |||||||||||
Direct premiums written | $ 883,409 | $ 789,577 | $ 783,894 | ||||||||
Ceded premiums written | (256,961) | (399,730) | (522,116) | ||||||||
Net premiums written | 626,448 | 389,847 | 261,778 | ||||||||
Direct Premiums Earned | 836,792 | 777,317 | 788,477 | ||||||||
Ceded Premiums Earned | (332,793) | (450,440) | (520,822) | ||||||||
Premiums earned, net | $ 150,598 | $ 146,153 | $ 112,888 | $ 94,360 | $ 95,420 | $ 94,288 | $ 73,362 | $ 63,807 | 503,999 | 326,877 | 267,655 |
Direct Losses and Loss Adjustment Expenses | 214,491 | 199,181 | 216,852 | ||||||||
Ceded Losses and Loss Adjustment Expenses | (26,752) | (75,906) | (108,237) | ||||||||
Net Losses and Loss Adjustment Expenses | $ 187,739 | $ 123,275 | $ 108,615 |
Reinsurance - Prepaid Reinsuran
Reinsurance - Prepaid Reinsurance Premiums and Reinsurance Recoverable and Receivable (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Reinsurance Disclosures [Abstract] | ||||
Prepaid reinsurance premiums | $ 114,673 | $ 190,505 | ||
Reinsurance recoverable on unpaid losses and LAE | 13,540 | 47,350 | $ 68,584 | $ 81,415 |
Reinsurance recoverable on paid losses | 9,313 | 7,837 | ||
Reinsurance receivable, net | 353 | 7,468 | ||
Reinsurance recoverable and receivable | $ 23,206 | $ 62,655 |
Insurance Operations - Beginnin
Insurance Operations - Beginning and Ending Balances and Changes in DPAC, Net of DRCC (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Insurance [Abstract] | |||
DPAC, beginning of year | $ 54,603 | $ 54,099 | $ 54,431 |
Capitalized Costs | 116,954 | 108,072 | 109,981 |
Amortization of DPAC | (111,538) | (107,568) | (110,313) |
DPAC, end of year | 60,019 | 54,603 | 54,099 |
DRCC, beginning of year | 28,943 | 38,200 | 37,149 |
Ceding Commissions Written | (5,276) | 64,810 | 89,679 |
Earned Ceding Commissions | (23,667) | (74,067) | (88,628) |
DRCC, end of year | 28,943 | 38,200 | |
DPAC (DRCC), net, beginning of year | 25,660 | 15,899 | 17,282 |
Capitalized Costs, net | 122,230 | 43,262 | 20,302 |
Amortization of DPAC (DRCC), net | (87,871) | (33,501) | (21,685) |
DPAC (DRCC), net, end of year | $ 60,019 | $ 25,660 | $ 15,899 |
Insurance Operations - Change i
Insurance Operations - Change in Liability for Unpaid Losses and LAE (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Insurance [Abstract] | |||
Balance at beginning of year | $ 134,353 | $ 159,222 | $ 193,241 |
Less: Reinsurance recoverable | (47,350) | (68,584) | (81,415) |
Net balance at beginning of period | 87,003 | 90,638 | 111,826 |
Incurred (recovered) related to current year | 188,040 | 124,011 | 111,560 |
Incurred (recovered) related to prior years | (301) | (736) | (2,945) |
Total incurred | 187,739 | 123,275 | 108,615 |
Paid related to Current year | 123,952 | 73,981 | 62,529 |
Paid related to Prior years | 65,490 | 52,929 | 67,274 |
Total paid | 189,442 | 126,910 | 129,803 |
Net balance at end of period | 85,300 | 87,003 | 90,638 |
Plus: Reinsurance recoverable | 13,540 | 47,350 | 68,584 |
Balance at end of year | $ 98,840 | $ 134,353 | $ 159,222 |
Insurance Operations - Addition
Insurance Operations - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2015USD ($) | |
UPCIC [Member] | |
Statutory Accounting Practices [Line Items] | |
Statutory ordinary dividend capacity | $ 27,700,000 |
UPCIC and APPCIC [Member] | |
Statutory Accounting Practices [Line Items] | |
Dividend paid to UVECF | $ 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 $5.0 million. |
Insurance Operations - Statutor
Insurance Operations - Statutory Capital and Surplus, and an Amount Representing Ten Percent of Total Liabilities for both UPCIC and APPCIC (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Statutory Accounting Practices [Line Items] | ||
Statutory capital and surplus | $ 15,800 | |
UPCIC [Member] | ||
Statutory Accounting Practices [Line Items] | ||
Ten percent of total liabilities | 55,928 | $ 42,659 |
Statutory capital and surplus | 256,987 | 200,173 |
APPCIC [Member] | ||
Statutory Accounting Practices [Line Items] | ||
Ten percent of total liabilities | 463 | 514 |
Statutory capital and surplus | $ 14,777 | $ 14,036 |
Insurance Operations - Assets H
Insurance Operations - Assets Held by Insurance Regulators (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Restricted Cash and Cash Equivalents [Member] | ||
Statutory Accounting Practices [Line Items] | ||
Assets held by insurance regulators | $ 2,635 | $ 2,635 |
Investments [Member] | ||
Statutory Accounting Practices [Line Items] | ||
Assets held by insurance regulators | $ 3,876 | $ 3,609 |
Property and Equipment - Compon
Property and Equipment - Components of Property and Equipment (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Property Plant And Equipment [Line Items] | ||
Total cost | $ 34,238 | $ 22,958 |
Less: Accumulated depreciation | (7,173) | (5,704) |
Property and equipment, net | 27,065 | 17,254 |
Land [Member] | ||
Property Plant And Equipment [Line Items] | ||
Total cost | 3,987 | 3,987 |
Building [Member] | ||
Property Plant And Equipment [Line Items] | ||
Total cost | 17,806 | 9,848 |
Construction in progress [Member] | ||
Property Plant And Equipment [Line Items] | ||
Total cost | 241 | 1,427 |
Computers [Member] | ||
Property Plant And Equipment [Line Items] | ||
Total cost | 5,118 | 2,303 |
Furniture [Member] | ||
Property Plant And Equipment [Line Items] | ||
Total cost | 1,284 | 1,286 |
Automobiles and Other Vehicles [Member] | ||
Property Plant And Equipment [Line Items] | ||
Total cost | 5,096 | 3,454 |
Software [Member] | ||
Property Plant And Equipment [Line Items] | ||
Total cost | $ 706 | $ 653 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Property Plant And Equipment [Abstract] | |||
Depreciation and amortization | $ 2,033 | $ 1,194 | $ 1,012 |
Property and Equipment - Realiz
Property and Equipment - Realized Gain (Losses) on the Disposal of Property and Equipment (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Property Plant And Equipment [Abstract] | |||
Realized gain (loss) on disposal | $ (26) | $ (19) | $ (10) |
Long-Term Debt - Schedule of Lo
Long-Term Debt - Schedule of Long-Term Debt (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Debt Instrument [Line Items] | ||
Total | $ 24,050 | $ 30,610 |
Surplus Note [Member] | ||
Debt Instrument [Line Items] | ||
Notes payable | 15,809 | 17,280 |
Term Loan [Member] | ||
Debt Instrument [Line Items] | ||
Term loan | 6,851 | $ 13,330 |
Promissory Note [Member] | ||
Debt Instrument [Line Items] | ||
Notes payable | $ 1,390 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Detail) | Mar. 29, 2013USD ($) | Dec. 31, 2015USD ($)Installment | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | May. 23, 2013USD ($) | Nov. 09, 2006USD ($) |
Debt Instrument [Line Items] | ||||||
Statutory capital and surplus | $ 15,800,000 | |||||
Principal repayments of Surplus Note | 1,500,000 | $ 1,500,000 | $ 1,500,000 | |||
Surplus during the term of surplus note | 50,000,000 | |||||
Amortization of discount | 521,000 | 840,000 | 601,000 | |||
Interest Expense | $ 1,000,000 | $ 1,500,000 | $ 1,200,000 | |||
Deutsche Bank [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Unsecured line of credit, maximum borrowing capacity | $ 15,000,000 | |||||
DB loan, maturity date | Jul. 31, 2017 | |||||
DB loan, Interest rate | LIBOR plus a margin of 5.50% or Deutsche Bank’s prime rate plus a margin of 3.50% | |||||
Basis spread on LIBOR rate | 5.50% | |||||
Basis spread on Prime rate | 3.50% | |||||
Unsecured line of credit, amount drawn | $ 0 | |||||
Surplus Note [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Unsecured term loan agreement | $ 25,000,000 | |||||
Effective interest rate | 2.21% | 2.73% | 2.21% | |||
Principal repayments of Surplus Note | $ 368,000 | |||||
Maturity year of debt instrument | through 2,026 | |||||
Net written premium to surplus ratio | 200.00% | |||||
Gross written premium to surplus ratio | 600.00% | |||||
Surplus Note [Member] | Hurricane [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Surplus and Reinsurance sufficient to cover in excess of UPCIC probable maximum loss | 1-in-100 year | |||||
Term Loan [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Unsecured term loan agreement | $ 7,000,000 | $ 14,000,000 | $ 20,000,000 | |||
Effective interest rate | 5.99% | |||||
Surplus note maturity date | May 23, 2016 | |||||
Stated interest rate on Term Loan | 0.50% | |||||
Number of installments | Installment | 3 | |||||
Term Loan is amortized | 3 years | |||||
Amortization of discount | $ 521,000 | $ 840,000 |
Long-Term Debt - Principal Amou
Long-Term Debt - Principal Amount and Unamortized Original Issue Discount (Detail) - Term Loan [Member] - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | May. 23, 2013 |
Debt Instrument [Line Items] | |||
Principal amount | $ 7,000 | $ 14,000 | $ 20,000 |
Less: Unamortized discount | (149) | (670) | |
Term Loan, net of unamortized discount | $ 6,851 | $ 13,330 |
Long-term Debt - Estimate of Pr
Long-term Debt - Estimate of Principal Payments to be Made for the Amount Due on the Surplus Note (Detail) $ in Thousands | Dec. 31, 2015USD ($) |
Debt Disclosure [Abstract] | |
2,016 | $ 9,860 |
2,017 | 1,471 |
2,018 | 1,471 |
2,019 | 1,471 |
2,020 | 1,471 |
Thereafter | 8,455 |
Total | $ 24,199 |
Stockholder's Equity - Cumulati
Stockholder's Equity - Cumulative Convertible Preferred Stock (Detail) - shares shares in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Convertible Preferred Stock [Line Items] | ||
Shares issued and outstanding | 10 | 12 |
Common shares resulting if converted | 25 | 35 |
Series A [Member] | ||
Convertible Preferred Stock [Line Items] | ||
Shares issued and outstanding | 10 | 10 |
Conversion factor | 2.50% | 2.50% |
Common shares resulting if converted | 25 | 25 |
Series M [Member] | ||
Convertible Preferred Stock [Line Items] | ||
Shares issued and outstanding | 2 | |
Conversion factor | 5.00% | |
Common shares resulting if converted | 10 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | Dec. 02, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |||
Equity [Line Items] | |||||||||||||
Treasury shares acquired | 200,000 | ||||||||||||
Shares repurchased during period | $ 5,100 | $ 18,649 | [1] | $ 29,736 | [1] | $ 32,366 | [1] | ||||||
Received distributions from the earnings of subsidiaries | 58,200 | 55,800 | 26,900 | ||||||||||
Capital contributions to subsidiaries | $ 0 | $ 0 | $ 0 | ||||||||||
Contingently redeemable common stock, issued shares | 1,000,000 | 0 | 0 | 1,000,000 | |||||||||
Redeemable Common Stock. price per share | $ 19 | ||||||||||||
Redeemable Common Stock, required holding period | 6 months | ||||||||||||
Redeemable Common Stock, contract terms | Ananke is required to hold the shares of common stock for a minimum of six months and then may: 1) sell up to one-third during the next three-month period, 2) sell another one-third during the next three-month period and 3) sell the remaining purchased thereafter. | ||||||||||||
Open Market [Member] | |||||||||||||
Equity [Line Items] | |||||||||||||
Treasury shares acquired | 548,100 | ||||||||||||
Shares repurchased during period | $ 13,600 | ||||||||||||
Series A [Member] | |||||||||||||
Equity [Line Items] | |||||||||||||
Series A preferred stock pays a cumulative dividend | $ 0.25 | $ 0.25 | $ 0.25 | $ 0.25 | |||||||||
Preferred stock aggregate dividends | $ 10 | $ 13 | |||||||||||
Series M [Member] | |||||||||||||
Equity [Line Items] | |||||||||||||
Series A preferred stock pays a cumulative dividend | $ 0.20 | ||||||||||||
Preferred stock aggregate dividends | $ 0 | $ 400 | |||||||||||
Series M Convertible Preferred Stock | |||||||||||||
Equity [Line Items] | |||||||||||||
Preferred stock repurchased, outstanding shares | 2,000 | ||||||||||||
Stock repurchased and retired during period | $ 256 | ||||||||||||
[1] | See “—Note 8 (Stockholders’ Equity)” for an explanation of events subsequent to December 31, 2014 giving rise to pro-forma stockholders’ equity of $218.9 million as of December 31, 2014. |
Stockholder's Equity - Activity
Stockholder's Equity - Activity Relating to Common Shares and Contingently Redeemable Common Shares (Detail) - shares shares in Thousands | 1 Months Ended | 12 Months Ended | |||
Jun. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Beginning balance, shares | 43,769 | ||||
Beginning balance, shares | (9,667) | ||||
Beginning balance, shares | 34,102 | ||||
Shares repurchased | (200) | ||||
Options exercised | 751 | ||||
Shares acquired through cashless exercise | (611) | (1,787) | (1,966) | ||
Ending balance, shares | 45,525 | 43,769 | |||
Ending balance, shares | (10,415) | (9,667) | |||
Ending balance, shares | 35,110 | 34,102 | |||
Common Stock [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Beginning balance, shares | 44,769 | 43,641 | 41,889 | ||
Conversion of preferred stock | 65 | 389 | |||
Options exercised | 751 | 1,900 | 2,330 | ||
Restricted stock grant | 615 | 950 | 1,000 | ||
Shares cancelled | (610) | (1,787) | (1,967) | ||
Ending balance, shares | 45,525 | 44,769 | 43,641 | ||
Treasury Stock [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Beginning balance, shares | (9,667) | (8,275) | (1,018) | ||
Shares repurchased | (748) | (2,392) | (7,257) | ||
Treasury shares reissued and classified as contingently redeemable common stock | [1] | 1,000 | |||
Shares acquired through cashless exercise | [2] | (610) | (1,787) | (1,967) | |
Shares cancelled | 610 | 1,787 | 1,967 | ||
Ending balance, shares | (10,415) | (9,667) | (8,275) | ||
Stock Compensation Plan [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Beginning balance, shares | 35,102 | 35,366 | 40,871 | ||
Conversion of preferred stock | 65 | 389 | |||
Shares repurchased | (748) | (2,392) | (7,257) | ||
Treasury shares reissued and classified as contingently redeemable common stock | [1] | 1,000 | |||
Options exercised | 751 | 1,900 | 2,330 | ||
Restricted stock grant | 615 | 950 | 1,000 | ||
Shares acquired through cashless exercise | [2] | (610) | (1,787) | (1,967) | |
Ending balance, shares | 35,110 | 35,102 | 35,366 | ||
[1] | Subsequent to December 31, 2014, contingently redeemable common stock was reclassified to common stock. | ||||
[2] | 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 (as defined in “—Note 9 (Share-Based Compensation)”) vested. These shares have been cancelled by the Company. |
Stockholders' Equity - Summary
Stockholders' Equity - Summary of Dividends Declared on its Outstanding Shares of Common Stock to its Shareholders (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||||
Equity [Abstract] | ||||||||||||||||||
Dividends per share declared on outstanding common stock | $ 0.27 | $ 0.12 | $ 0.12 | $ 0.12 | $ 0.25 | $ 0.10 | $ 0.10 | $ 0.10 | $ 0.23 | $ 0.10 | $ 0.08 | $ 0.08 | $ 0.63 | $ 0.55 | $ 0.49 | |||
Aggregate amount | $ 9,492 | $ 4,275 | $ 4,283 | $ 4,237 | $ 8,845 | $ 3,429 | $ 3,502 | $ 3,464 | $ 8,134 | $ 3,511 | $ 2,821 | $ 3,259 | $ 22,297 | [1] | $ 19,253 | [1] | $ 17,754 | [1] |
[1] | See “—Note 8 (Stockholders’ Equity)” for an explanation of events subsequent to December 31, 2014 giving rise to pro-forma stockholders’ equity of $218.9 million as of December 31, 2014. |
Stockholders' Equity - Summar77
Stockholders' Equity - Summary of Unaudited Pro-Forma Adjustments to Consolidated Balance Sheet (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Condensed Balance Sheet Statements Captions [Line Items] | |||||
Total assets | $ 993,548 | $ 911,774 | |||
Total liabilities | $ 700,456 | 692,858 | |||
Contingently redeemable common stock | $ 19,000 | ||||
STOCKHOLDERS' EQUITY: | |||||
Cumulative convertible preferred stock, $.01 par value | |||||
Common stock, $.01 par value | $ 455 | $ 448 | |||
Treasury shares, at cost | (80,802) | (62,153) | |||
Additional paid-in capital | 70,789 | 40,987 | |||
Accumulated other comprehensive income (loss), net of taxes | (4,006) | (1,835) | |||
Retained earnings | 306,656 | 222,469 | |||
Total stockholders' equity | [1] | 293,092 | 199,916 | $ 175,609 | $ 163,514 |
Total liabilities, contingently redeemable common stock and stockholders' equity | $ 993,548 | 911,774 | |||
Pro-Forma Adjustment [Member] | |||||
Condensed Balance Sheet Statements Captions [Line Items] | |||||
Contingently redeemable common stock | $ (19,000) | ||||
STOCKHOLDERS' EQUITY: | |||||
Cumulative convertible preferred stock, $.01 par value | |||||
Additional paid-in capital | $ 19,000 | ||||
Total stockholders' equity | 19,000 | ||||
Pro-Forma [Member] | |||||
Condensed Balance Sheet Statements Captions [Line Items] | |||||
Total assets | 911,774 | ||||
Total liabilities | $ 692,858 | ||||
STOCKHOLDERS' EQUITY: | |||||
Cumulative convertible preferred stock, $.01 par value | |||||
Common stock, $.01 par value | $ 448 | ||||
Treasury shares, at cost | (62,153) | ||||
Additional paid-in capital | 59,987 | ||||
Accumulated other comprehensive income (loss), net of taxes | (1,835) | ||||
Retained earnings | 222,469 | ||||
Total stockholders' equity | [1] | 218,916 | |||
Total liabilities, contingently redeemable common stock and stockholders' equity | $ 911,774 | ||||
[1] | See “—Note 8 (Stockholders’ Equity)” for an explanation of events subsequent to December 31, 2014 giving rise to pro-forma stockholders’ equity of $218.9 million as of December 31, 2014. |
Stockholders' Equity - Summar78
Stockholders' Equity - Summary of Pro-Forma Adjustments to Consolidated Balance Sheet (Parenthetical) (Detail) - $ / shares | Dec. 31, 2015 | Dec. 31, 2014 |
Condensed Balance Sheet Statements Captions [Line Items] | ||
Cumulative convertible preferred stock, par value | $ 0.01 | $ 0.01 |
Common stock, par value | $ 0.01 | 0.01 |
Pro-Forma [Member] | ||
Condensed Balance Sheet Statements Captions [Line Items] | ||
Cumulative convertible preferred stock, par value | 0.01 | |
Common stock, par value | $ 0.01 |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2015shares | |
Outstanding Shares [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Remaining shares reserved for issuance | 3,434,775 |
Stock Option [Member] | Minimum [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Stock option awards, expiration period | 5 years |
Vested and non-vested stock awards, vesting service period | 1 year |
Stock Option [Member] | Maximum [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Stock option awards, expiration period | 7 years |
Vested and non-vested stock awards, vesting service period | 3 years |
Restricted Stock [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Vested and non-vested stock awards, vesting service period | 3 years |
Share-Based Compensation - Cert
Share-Based Compensation - Certain Information Related to Stock Options and Restricted Stock (Detail) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($)$ / sharesshares | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock Options Number of Options beginning balance | shares | 2,405 |
Stock Options Number of Options Granted | shares | 750 |
Stock Options Number of Options Forfeited | shares | (60) |
Stock Options Number of Options Exercised | shares | (751) |
Stock Options Number of Options Expired | shares | (75) |
Stock Options Number of Options ending balance | shares | 2,269 |
Stock Options Number of Options Exercisable | shares | 645 |
Stock Options Weighted Average Exercise Price per Share Outstanding beginning balance | $ / shares | $ 6.99 |
Stock Options Weighted Average Exercise Price per Share Granted | $ / shares | 23.72 |
Stock Options Weighted Average Exercise Price per Share Forfeited | $ / shares | 7.33 |
Stock Options Weighted Average Exercise Price per Share Exercised | $ / shares | 5.08 |
Stock Options Weighted Average Exercise Price per Share Expired | $ / shares | 4.87 |
Stock Options Weighted Average Exercise Price per Share Outstanding ending balance | $ / shares | 13.22 |
Stock Options Weighted Average Exercise Price per Share Exercisable | $ / shares | $ 8.37 |
Stock Options Aggregate Intrinsic Value Outstanding | $ | $ 23,351 |
Stock Options Aggregate Intrinsic Value Exercisable | $ | $ 9,554 |
Stock Options Weighted Average Remaining Term | 4 years 4 days |
Exercisable Stock Options Weighted Average Remaining Term | 2 years 6 months 29 days |
Restricted Stock Number of Shares beginning balance | shares | 675 |
Restricted Stock Number of Shares Granted | shares | 615 |
Restricted Stock Number of Shares Vested | shares | (675) |
Restricted Stock Number of Shares ending balance | shares | 615 |
Restricted Stock Weighted Average Grant Date Fair Value per Share beginning balance | $ / shares | $ 12.40 |
Restricted Stock Weighted Average Grant Date Fair Value per Share Granted | $ / shares | 26.04 |
Restricted Stock Weighted Average Grant Date Fair Value per Share Vested | $ / shares | 12.40 |
Restricted Stock Weighted Average Grant Date Fair Value per Share ending balance | $ / shares | $ 26.04 |
Share-Based Compensation - Ce81
Share-Based Compensation - Certain Information Regarding Company's Share-Based Compensation (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Compensation expense, Total | $ 17,386 | $ 12,342 | $ 6,417 |
Deferred tax benefits, Total | 5,348 | 343 | 792 |
Realized tax benefits, Total | 5,369 | 8,288 | 2,739 |
Excess tax benefits (shortfall) | $ 5,310 | 7,006 | 359 |
Weighted average fair value per option or share, Restricted stock grants | $ 26.04 | ||
Intrinsic value of options exercised | $ 14,734 | 18,979 | $ 6,131 |
Cash received for strike price and tax withholdings | $ 519 | $ 73 | |
Shares acquired through cashless exercise | 611 | 1,787 | 1,966 |
Value of shares acquired through cashless exercise | $ 15,445 | $ 26,947 | $ 12,630 |
Stock Option [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Compensation expense, Stock options | 1,389 | 675 | 930 |
Deferred tax benefits, Total | 532 | 260 | 359 |
Realized tax benefits, Total | 5,369 | 7,321 | 2,365 |
Excess tax benefits (shortfall) | $ 5,310 | $ 6,472 | $ 418 |
Weighted average fair value per option or share, Stock option grants | $ 6.34 | $ 3.39 | $ 0.79 |
Restricted Stock [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Compensation expense, Restricted Stock | $ 15,997 | $ 11,667 | $ 5,487 |
Deferred tax benefits, Total | $ 4,816 | 83 | 433 |
Realized tax benefits, Total | 967 | 374 | |
Excess tax benefits (shortfall) | $ 534 | $ (59) | |
Weighted average fair value per option or share, Restricted stock grants | $ 26.04 | $ 12.88 | $ 5.43 |
Fair value of restricted stock vested | $ 17,505 | $ 28,350 | $ 2,548 |
Share-Based Compensation - Unre
Share-Based Compensation - Unrecognized Compensation Expense and Weighted Average Period (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Stock Option [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Unrecognized expense | $ 4,795 |
Weighted average remaining years | 2 years 7 months 17 days |
Restricted Stock [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Unrecognized expense | $ 3,433 |
Weighted average remaining years | 2 months 12 days |
Share-Based Compensation - Summ
Share-Based Compensation - Summary of Assumptions Utilized in the Black-Scholes Model for Stock Options Granted (Detail) - Stock Option [Member] - $ / shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Weighted-average risk-free interest rate | 0.54% | 0.48% | 0.27% |
Expected term of option in years | 3 years 4 months 17 days | 2 years 11 months 23 days | 2 years 11 months 23 days |
Weighted-average volatility | 44.30% | 40.30% | 34.10% |
Dividend yield | 3.40% | 3.90% | 9.10% |
Weighted average grant date fair value per share | $ 6.34 | $ 3.39 | $ 0.79 |
Employee Benefit Plan - Additio
Employee Benefit Plan - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Compensation And Retirement Disclosure [Abstract] | |||
Company contribution percentage | 100.00% | ||
Participant's contribution percentage | 5.00% | ||
Additional profit-sharing contribution | $ 0 | $ 0 | $ 0 |
Aggregate contributions | $ 682,000 | $ 599,000 | $ 709,000 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) shares in Millions | May. 23, 2013 | Dec. 31, 2015 | Dec. 31, 2014 |
SPC Global RE Advisors LLC [Member] | |||
Related Party Transaction [Line Items] | |||
Consulting agreement terminated date | Sep. 18, 2015 | ||
Payments due to related party | $ 0 | $ 0 | |
RenRe Ventures [Member] | |||
Related Party Transaction [Line Items] | |||
Repurchase of shares | 2 | ||
Percentage of outstanding common stock | 4.99% |
Related Party Transactions - Pa
Related Party Transactions - Payments Made by Company to Downes and Associates (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Downes and Associates [Member] | |||
Related Party Transaction [Line Items] | |||
Payments made by the company to related party | $ 477 | ||
SPC Global RE Advisors LLC [Member] | |||
Related Party Transaction [Line Items] | |||
Payments made by the company to related party | $ 90 | $ 120 | $ 68 |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Provision (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Current: | |||
Federal | $ 61,830 | $ 47,245 | $ 28,508 |
State and local | 7,402 | 7,877 | 5,708 |
Total current expense (benefit) | 69,232 | 55,122 | 34,216 |
Deferred: | |||
Federal | (775) | (152) | 7,917 |
State and local | 82 | (354) | (554) |
Total deferred expense (benefit) | (693) | (506) | 7,363 |
Income tax expense | $ 68,539 | $ 54,616 | $ 41,579 |
Income Taxes - Reconciles Statu
Income Taxes - Reconciles Statutory Federal Income Tax Rate to Company' s Effective Tax Rate (Detail) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
Expected provision at federal statutory tax rate | 35.00% | 35.00% | 35.00% |
Increases (decreases) resulting from: | |||
Disallowed meals & entertainment | 0.20% | 0.40% | 0.40% |
Disallowed compensation | 1.10% | 4.20% | 2.30% |
State income tax, net of federal tax benefit | 3.40% | 3.60% | 3.60% |
Effect of change in rate | 0.10% | ||
Other, net | (0.60%) | (0.40%) | |
Total income tax expense (benefit) | 39.20% | 42.80% | 41.30% |
Income Taxes - Deferred Income
Income Taxes - Deferred Income Tax Effects of Temporary Differences (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred income tax assets: | ||
Unearned premiums | $ 25,082 | $ 15,835 |
Advanced premiums | 1,859 | 1,332 |
Unpaid losses and LAE | 1,105 | 1,654 |
Regulatory assessments | 31 | 111 |
Share-based compensation | 5,535 | 520 |
Accrued wages | 164 | 539 |
Allowance for uncollectible receivables | 214 | 138 |
Additional tax basis of securities | 51 | 53 |
Capital loss carryforwards | 850 | 918 |
Other comprehensive income | 2,521 | 1,152 |
Total deferred income tax assets | 37,412 | 22,252 |
Deferred income tax liabilities: | ||
Deferred policy acquisition costs, net | (22,969) | (9,898) |
Prepaid expenses | (456) | (504) |
Other | (75) | |
Total deferred income tax liabilities | (23,500) | (10,402) |
Net deferred income tax asset | $ 13,912 | $ 11,850 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Income Taxes [Line Items] | |||
Valuation allowance | $ 0 | ||
Uncertain tax liabilities | 0 | $ 0 | $ 0 |
Capital loss carryforwards | 850,000 | $ 918,000 | |
2,013 | |||
Income Taxes [Line Items] | |||
Capital loss carryforwards | 5,600,000 | ||
2,012 | |||
Income Taxes [Line Items] | |||
Capital loss carryforwards | $ 5,700,000 |
Earnings Per Share - Reconciles
Earnings Per Share - Reconciles Numerator and Denominator of Basic and Diluted Earnings Per Share Computations (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||||
Numerator for EPS: | ||||||||||||||
Net income | $ 29,152 | $ 30,298 | $ 24,704 | $ 22,330 | $ 20,972 | $ 21,341 | $ 17,126 | $ 13,549 | $ 106,484 | [1] | $ 72,988 | [1] | $ 58,977 | [1] |
Less: Preferred stock dividends | (10) | (13) | (29) | |||||||||||
Income available to common stockholders | $ 106,474 | $ 72,975 | $ 58,948 | |||||||||||
Denominator for EPS: | ||||||||||||||
Weighted average common shares outstanding | 34,799 | 33,569 | 35,866 | |||||||||||
Plus: Assumed conversion of share-based compensation | 1,056 | 1,535 | 1,531 | |||||||||||
Assumed conversion of preferred stock | 29 | 46 | 379 | |||||||||||
Weighted average diluted common shares outstanding | 35,884 | 35,150 | 37,776 | |||||||||||
Basic earnings per common share | $ 0.84 | $ 0.87 | $ 0.71 | $ 0.65 | $ 0.63 | $ 0.64 | $ 0.50 | $ 0.41 | $ 3.06 | $ 2.17 | $ 1.64 | |||
Diluted earnings per common share | $ 0.82 | $ 0.84 | $ 0.69 | $ 0.62 | $ 0.59 | $ 0.61 | $ 0.49 | $ 0.38 | $ 2.97 | $ 2.08 | $ 1.56 | |||
Weighted average number of antidilutive shares | 311 | 64 | 518 | |||||||||||
[1] | See “—Note 8 (Stockholders’ Equity)” for an explanation of events subsequent to December 31, 2014 giving rise to pro-forma stockholders’ equity of $218.9 million as of December 31, 2014. |
Other Comprehensive Income (L92
Other Comprehensive Income (Loss) - Components of Other Comprehensive Income (loss) Pre-Tax and After-Tax (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Equity [Abstract] | |||
Net unrealized gains (losses) on investments available for sale arising during the period, Pre-tax | $ (2,480) | $ 3,252 | $ 685 |
Less: Amounts reclassified from accumulated other comprehensive income (loss), Pre-tax | (1,060) | (5,627) | (1,297) |
Net current period other comprehensive income (loss), Pre-tax | (3,540) | (2,375) | (612) |
Net unrealized gains (losses) on investments available for sale arising during the period, Tax | (963) | 1,255 | 264 |
Less: Amounts reclassified from accumulated other comprehensive income (loss), Tax | (406) | (2,171) | (500) |
Net current period other comprehensive income (loss), Tax | (1,369) | (916) | (236) |
Net unrealized gains (losses) on investments available for sale arising during the period, After-tax | (1,517) | 1,997 | 421 |
Less: Amounts reclassified from accumulated other comprehensive income (loss), After-tax | (654) | (3,456) | (797) |
Net current period other comprehensive income (loss), After-tax | $ (2,171) | $ (1,459) | $ (376) |
Other Comprehensive Income (L93
Other Comprehensive Income (Loss) - Reclassifications Out of Accumulated Other Comprehensive Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||||||
Net realized gains (losses) on investments | $ 1,060 | $ 5,627 | $ (14,740) | |||||||||||
Income taxes, current | (69,232) | (55,122) | (34,216) | |||||||||||
NET INCOME | $ 29,152 | $ 30,298 | $ 24,704 | $ 22,330 | $ 20,972 | $ 21,341 | $ 17,126 | $ 13,549 | 106,484 | [1] | 72,988 | [1] | 58,977 | [1] |
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 | 1,060 | 5,627 | 1,297 | |||||||||||
Income taxes, current | (406) | (2,171) | (500) | |||||||||||
NET INCOME | $ 654 | $ 3,456 | $ 797 | |||||||||||
[1] | See “—Note 8 (Stockholders’ Equity)” for an explanation of events subsequent to December 31, 2014 giving rise to pro-forma stockholders’ equity of $218.9 million as of December 31, 2014. |
Commitments and Contingencies -
Commitments and Contingencies - Future Minimum Rental Payments Under the Non-cancelable Operating Leases (Detail) $ in Thousands | Dec. 31, 2015USD ($) |
Commitments And Contingencies Disclosure [Abstract] | |
2,016 | $ 195 |
2,017 | 133 |
2,018 | 127 |
2,019 | 64 |
Total | $ 519 |
Commitments and Contingencies95
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 02, 2014 | |
Commitments And Contingencies Disclosure [Abstract] | ||||
Total rental expense | $ 121 | $ 753 | $ 423 | |
Minimum annual spend towards covered loss | $ 5,000 | |||
Agreement, terms period | June 1, 2016 through May 31, 2025 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets Measured for at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities | $ 416,083 | $ 353,949 |
Equity securities | 42,214 | 19,642 |
Short-term investments | 25,021 | 49,990 |
Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 25,021 | 37,490 |
Total assets accounted for at fair value | 483,318 | 411,081 |
Fair Value, Measurements, Recurring | U.S. Government Obligations and Agencies [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities | 125,342 | 120,038 |
Fair Value, Measurements, Recurring | Corporate Bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities | 125,517 | 119,832 |
Fair Value, Measurements, Recurring | Mortgage-Backed and Asset-Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities | 150,160 | 107,223 |
Fair Value, Measurements, Recurring | Redeemable Preferred Stock [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities | 10,065 | 6,856 |
Fair Value, Measurements, Recurring | Other [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities | 4,999 | |
Fair Value, Measurements, Recurring | Common Stock [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 10,762 | 270 |
Fair Value, Measurements, Recurring | Mutual Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 31,452 | 19,372 |
Fair Value, Measurements, Recurring | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets accounted for at fair value | 42,214 | 19,642 |
Fair Value, Measurements, Recurring | Level 1 [Member] | Common Stock [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 10,762 | 270 |
Fair Value, Measurements, Recurring | Level 1 [Member] | Mutual Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 31,452 | 19,372 |
Fair Value, Measurements, Recurring | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 25,021 | 37,490 |
Total assets accounted for at fair value | 441,104 | 391,439 |
Fair Value, Measurements, Recurring | Level 2 [Member] | U.S. Government Obligations and Agencies [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities | 125,342 | 120,038 |
Fair Value, Measurements, Recurring | Level 2 [Member] | Corporate Bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities | 125,517 | 119,832 |
Fair Value, Measurements, Recurring | Level 2 [Member] | Mortgage-Backed and Asset-Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities | 150,160 | 107,223 |
Fair Value, Measurements, Recurring | Level 2 [Member] | Redeemable Preferred Stock [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities | 10,065 | $ 6,856 |
Fair Value, Measurements, Recurring | Level 2 [Member] | Other [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities | $ 4,999 |
Fair Value Measurements - Ass97
Fair Value Measurements - Assets Measured for at Fair Value on Recurring Basis (Parenthetical) (Detail) $ in Millions | Dec. 31, 2014USD ($) |
Fair Value Disclosures [Abstract] | |
Certificates of deposit | $ 12.5 |
Fair Value Measurements - Summa
Fair Value Measurements - Summarizes Carrying Value and Estimated Fair Values of Financial Instruments not Carried at Fair Value (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Surplus Note [Member] | ||
Fair Value Inputs Assets Liabilities Quantitative Information [Line Items] | ||
Carrying value | $ 15,809 | $ 17,280 |
Surplus Note [Member] | Level 3 [Member] | ||
Fair Value Inputs Assets Liabilities Quantitative Information [Line Items] | ||
Estimated fair value | 14,166 | 14,951 |
Term Loan [Member] | ||
Fair Value Inputs Assets Liabilities Quantitative Information [Line Items] | ||
Carrying value | 6,851 | 13,330 |
Term Loan [Member] | Level 3 [Member] | ||
Fair Value Inputs Assets Liabilities Quantitative Information [Line Items] | ||
Estimated fair value | 6,851 | $ 13,330 |
Promissory Note [Member] | ||
Fair Value Inputs Assets Liabilities Quantitative Information [Line Items] | ||
Carrying value | 1,390 | |
Promissory Note [Member] | Level 3 [Member] | ||
Fair Value Inputs Assets Liabilities Quantitative Information [Line Items] | ||
Estimated fair value | $ 1,390 |
Quarterly Results for 2015 an99
Quarterly Results for 2015 and 2014 - Summary of Quarterly Results for the Periods Presented (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||
Net premiums earned | $ 150,598 | $ 146,153 | $ 112,888 | $ 94,360 | $ 95,420 | $ 94,288 | $ 73,362 | $ 63,807 | $ 503,999 | $ 326,877 | $ 267,655 | |||
Investment income | 1,779 | 1,307 | 1,207 | 862 | 801 | 644 | 412 | 518 | 5,155 | 2,375 | 1,928 | |||
Total revenues | 162,100 | 157,043 | 123,591 | 103,810 | 104,482 | 103,500 | 86,989 | 74,305 | 546,544 | 369,276 | 301,159 | |||
Total expenses | 114,220 | 109,143 | 82,371 | 65,787 | 67,556 | 66,348 | 56,580 | 51,188 | 371,521 | 241,672 | 200,603 | |||
Net income | $ 29,152 | $ 30,298 | $ 24,704 | $ 22,330 | $ 20,972 | $ 21,341 | $ 17,126 | $ 13,549 | $ 106,484 | [1] | $ 72,988 | [1] | $ 58,977 | [1] |
Basic earnings per share | $ 0.84 | $ 0.87 | $ 0.71 | $ 0.65 | $ 0.63 | $ 0.64 | $ 0.50 | $ 0.41 | $ 3.06 | $ 2.17 | $ 1.64 | |||
Diluted earnings per share | $ 0.82 | $ 0.84 | $ 0.69 | $ 0.62 | $ 0.59 | $ 0.61 | $ 0.49 | $ 0.38 | $ 2.97 | $ 2.08 | $ 1.56 | |||
[1] | See “—Note 8 (Stockholders’ Equity)” for an explanation of events subsequent to December 31, 2014 giving rise to pro-forma stockholders’ equity of $218.9 million as of December 31, 2014. |
Quarterly Results for 2015 a100
Quarterly Results for 2015 and 2014 - Additional Information (Detail) $ in Millions | 3 Months Ended |
Dec. 31, 2015USD ($) | |
Quarterly Financial Information Disclosure [Abstract] | |
Increase in revenue during period | $ 57.6 |
Increase in operating expenses | $ 46.7 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - $ / shares | Jan. 14, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Subsequent Event [Line Items] | ||||||||||||||||
Dividends per share declared on outstanding common stock | $ 0.27 | $ 0.12 | $ 0.12 | $ 0.12 | $ 0.25 | $ 0.10 | $ 0.10 | $ 0.10 | $ 0.23 | $ 0.10 | $ 0.08 | $ 0.08 | $ 0.63 | $ 0.55 | $ 0.49 | |
Subsequent Event [Member] | ||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||
Dividends per share declared on outstanding common stock | $ 0.14 | |||||||||||||||
Dividend payable date | Mar. 2, 2016 | |||||||||||||||
Dividends payable, shareholders record date | Feb. 18, 2016 |
Schedule II - Condensed Fina102
Schedule II - Condensed Financial Information of Registrant - Condensed Balance Sheets (Parenthetical) (Detail) - $ / shares | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 02, 2014 |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |||
Contingently redeemable common stock, issued shares | 0 | 1,000,000 | 1,000,000 |
Contingently redeemable common stock, outstanding shares | 0 | 1,000,000 | |
Cumulative convertible preferred stock, par value | $ 0.01 | $ 0.01 | |
Cumulative convertible preferred stock, shares authorized | 1,000,000 | 1,000,000 | |
Cumulative convertible preferred stock, shares issued | 10,000 | 12,000 | |
Cumulative convertible preferred stock, shares outstanding | 10,000 | 12,000 | |
Cumulative convertible preferred stock, minimum liquidation preference | $ 9.99 | $ 8.49 | |
Common stock, par value | $ 0.01 | $ 0.01 | |
Common stock, shares authorized | 55,000,000 | 55,000,000 | |
Common stock, shares issued | 45,525,000 | 43,769,000 | |
Common stock, shares outstanding | 35,110,000 | 34,102,000 | |
Treasury stock, shares | 10,415,000 | 9,667,000 |
Schedule II - Condensed Fina103
Schedule II - Condensed Financial Information of Registrant - Condensed Balance Sheets (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
ASSETS | |||||
Cash and cash equivalents | $ 197,014 | $ 115,397 | $ 117,275 | $ 347,392 | |
Fixed maturities, at fair value | 416,083 | 353,949 | |||
Equity securities | 42,214 | 19,642 | |||
Income taxes recoverable | 5,420 | 5,675 | |||
Deferred income taxes | 13,912 | 11,850 | |||
Other assets | 4,563 | 2,812 | |||
Total assets | 993,548 | 911,774 | |||
LIABILITIES: | |||||
Accounts payable | 378 | 4,121 | |||
Income taxes payable | 1,799 | ||||
Long-term debt | 24,050 | 30,610 | |||
Other accrued expenses | 36,424 | 36,318 | |||
Total liabilities | $ 700,456 | 692,858 | |||
Contingently redeemable common stock | $ 19,000 | ||||
STOCKHOLDERS' EQUITY: | |||||
Cumulative convertible preferred stock, $.01 par value Authorized shares - 1,000 Issued shares - 10 and 12 Outstanding shares - 10 and 12 Minimum liquidation preference - 9.99 and $8.49 per share | |||||
Common stock, $.01 par value | $ 455 | $ 448 | |||
Treasury shares, at cost - 10,415 and 9,667 | (80,802) | (62,153) | |||
Additional paid-in capital | 70,789 | 40,987 | |||
Accumulated other comprehensive income (loss), net of taxes | (4,006) | (1,835) | |||
Retained earnings | 306,656 | 222,469 | |||
Total stockholders' equity | [1] | 293,092 | 199,916 | 175,609 | 163,514 |
Total liabilities, contingently redeemable common stock and stockholders' equity | 993,548 | 911,774 | |||
Parent Company [Member] | |||||
ASSETS | |||||
Cash and cash equivalents | 2,046 | 14,890 | $ 4,878 | $ 17,733 | |
Investments in subsidiaries and undistributed earnings | 291,793 | 216,656 | |||
Fixed maturities, at fair value | 2,980 | 2,967 | |||
Equity securities | 551 | 627 | |||
Income taxes recoverable | 5,420 | 5,675 | |||
Deferred income taxes | 13,912 | 11,850 | |||
Other assets | 358 | 1,040 | |||
Total assets | 317,060 | 253,705 | |||
LIABILITIES: | |||||
Accounts payable | 169 | ||||
Income taxes payable | 1,799 | ||||
Long-term debt | 6,851 | 13,330 | |||
Other accrued expenses | 17,117 | 19,491 | |||
Total liabilities | $ 23,968 | 34,789 | |||
Contingently redeemable common stock | $ 19,000 | ||||
STOCKHOLDERS' EQUITY: | |||||
Cumulative convertible preferred stock, $.01 par value Authorized shares - 1,000 Issued shares - 10 and 12 Outstanding shares - 10 and 12 Minimum liquidation preference - 9.99 and $8.49 per share | |||||
Common stock, $.01 par value | $ 455 | $ 448 | |||
Treasury shares, at cost - 10,415 and 9,667 | (80,802) | (62,153) | |||
Additional paid-in capital | 70,789 | 40,987 | |||
Accumulated other comprehensive income (loss), net of taxes | (4,006) | (1,835) | |||
Retained earnings | 306,656 | 222,469 | |||
Total stockholders' equity | 293,092 | 199,916 | |||
Total liabilities, contingently redeemable common stock and stockholders' equity | $ 317,060 | $ 253,705 | |||
[1] | See “—Note 8 (Stockholders’ Equity)” for an explanation of events subsequent to December 31, 2014 giving rise to pro-forma stockholders’ equity of $218.9 million as of December 31, 2014. |
Schedule II - Condensed Fina104
Schedule II - Condensed Financial Information of Registrant - Condensed Statements of Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||||
PREMIUMS EARNED AND OTHER REVENUES | ||||||||||||||
Net investment income (expense) | $ 1,779 | $ 1,307 | $ 1,207 | $ 862 | $ 801 | $ 644 | $ 412 | $ 518 | $ 5,155 | $ 2,375 | $ 1,928 | |||
Net realized gains (losses) on investments | 1,060 | 5,627 | (14,740) | |||||||||||
Net change in unrealized gains (losses) on investments | 7,850 | |||||||||||||
Total premiums earned and other revenues | 162,100 | 157,043 | 123,591 | 103,810 | 104,482 | 103,500 | 86,989 | 74,305 | 546,544 | 369,276 | 301,159 | |||
OPERATING COSTS AND EXPENSES | ||||||||||||||
General and administrative expenses | 183,782 | 118,397 | 91,988 | |||||||||||
Total operating costs and expenses | 114,220 | 109,143 | 82,371 | 65,787 | 67,556 | 66,348 | 56,580 | 51,188 | 371,521 | 241,672 | 200,603 | |||
INCOME BEFORE INCOME TAXES | 175,023 | 127,604 | 100,556 | |||||||||||
Benefit from income taxes | 68,539 | 54,616 | 41,579 | |||||||||||
NET INCOME | $ 29,152 | $ 30,298 | $ 24,704 | $ 22,330 | $ 20,972 | $ 21,341 | $ 17,126 | $ 13,549 | 106,484 | [1] | 72,988 | [1] | 58,977 | [1] |
Parent Company [Member] | ||||||||||||||
PREMIUMS EARNED AND OTHER REVENUES | ||||||||||||||
Net investment income (expense) | 22 | (23) | 207 | |||||||||||
Net realized gains (losses) on investments | 66 | 625 | (2,947) | |||||||||||
Net change in unrealized gains (losses) on investments | 1,625 | |||||||||||||
Management fee | 140 | 121 | 134 | |||||||||||
Total premiums earned and other revenues | 228 | 723 | (981) | |||||||||||
OPERATING COSTS AND EXPENSES | ||||||||||||||
General and administrative expenses | 48,056 | 39,062 | 32,476 | |||||||||||
Total operating costs and expenses | 48,056 | 39,062 | 32,476 | |||||||||||
INCOME BEFORE INCOME TAXES | (47,828) | (38,339) | (33,457) | |||||||||||
Benefit from income taxes | (17,495) | (16,403) | (13,834) | |||||||||||
LOSS BEFORE EQUITY IN NET EARNINGS OF SUBSIDIARIES | (30,333) | (21,936) | (19,623) | |||||||||||
Equity in net income of subsidiaries | 136,817 | 94,924 | 78,600 | |||||||||||
NET INCOME | $ 106,484 | $ 72,988 | $ 58,977 | |||||||||||
[1] | See “—Note 8 (Stockholders’ Equity)” for an explanation of events subsequent to December 31, 2014 giving rise to pro-forma stockholders’ equity of $218.9 million as of December 31, 2014. |
Schedule II - Condensed Fina105
Schedule II - Condensed Financial Information of Registrant - Condensed Statements of Cash Flows (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||||
Cash flows from operating activities: | ||||||||||||||
Net income | $ 29,152 | $ 30,298 | $ 24,704 | $ 22,330 | $ 20,972 | $ 21,341 | $ 17,126 | $ 13,549 | $ 106,484 | [1] | $ 72,988 | [1] | $ 58,977 | [1] |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||
Amortization of share-based compensation | 17,386 | 12,342 | 6,417 | |||||||||||
Amortization of original issue discount on debt | 521 | 840 | 601 | |||||||||||
Accretion of deferred credit | (521) | (840) | (601) | |||||||||||
Net realized (gains) losses on investments | (1,060) | (5,627) | 14,740 | |||||||||||
Net change in unrealized (gains) losses on investments | (7,850) | |||||||||||||
Deferred income taxes | (693) | 1,118 | 7,363 | |||||||||||
Excess tax benefits from share-based compensation | (5,310) | (7,006) | (359) | |||||||||||
Other | 42 | 19 | 10 | |||||||||||
Net change in assets and liabilities relating to operating activities: | ||||||||||||||
Purchases of equity securities, trading | (26,009) | |||||||||||||
Proceeds from sale of equity securities, trading | 102,661 | |||||||||||||
Income taxes recoverable | 255 | 2,477 | (5,558) | |||||||||||
Income taxes payable | 3,510 | 6,239 | 2,226 | |||||||||||
Net cash provided by (used in) operating activities | 219,271 | 123,346 | 156,959 | |||||||||||
Cash flows from investing activities: | ||||||||||||||
Purchases of equity securities, available for sale | (65,038) | (116,541) | (77,859) | |||||||||||
Purchases of fixed maturities, available for sale | (178,198) | (106,885) | (305,330) | |||||||||||
Proceeds from sales of equity securities, available for sale | 41,456 | 163,981 | 15,542 | |||||||||||
Proceeds from sales of fixed maturities, available for sale | 38,379 | 17,153 | ||||||||||||
Net cash provided by (used in) investing activities | (83,052) | (77,188) | (352,683) | |||||||||||
Cash flows from financing activities: | ||||||||||||||
Proceeds from borrowings | 1,390 | 20,000 | ||||||||||||
Repayment of debt | (8,470) | (7,471) | (1,471) | |||||||||||
Preferred stock dividend | (10) | (13) | (29) | |||||||||||
Common stock dividend | (22,287) | (19,240) | (17,725) | |||||||||||
Issuance of common stock | 511 | 73 | ||||||||||||
Purchase of treasury stock | (18,649) | (29,736) | (32,366) | |||||||||||
Purchase of preferred stock | (256) | |||||||||||||
Payments related to tax withholding for share-based compensation | (12,141) | (17,655) | (3,161) | |||||||||||
Excess tax benefits (shortfall) from share-based compensation | 5,310 | 7,006 | 359 | |||||||||||
Net cash provided by (used in) financing activities | (54,602) | (48,036) | (34,393) | |||||||||||
Net increase (decrease) in cash and cash equivalents | 81,617 | (1,878) | (230,117) | |||||||||||
Cash and cash equivalents at beginning of period | 115,397 | 117,275 | 115,397 | 117,275 | 347,392 | |||||||||
Cash and cash equivalents at end of period | 197,014 | 115,397 | 197,014 | 115,397 | 117,275 | |||||||||
Parent Company [Member] | ||||||||||||||
Cash flows from operating activities: | ||||||||||||||
Net income | 106,484 | 72,988 | 58,977 | |||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||
Equity in net income of subsidiaries | (136,817) | (94,924) | (78,600) | |||||||||||
Distribution of income from subsidiaries | 58,224 | 55,805 | 26,898 | |||||||||||
Depreciation | 4 | 2 | ||||||||||||
Amortization of share-based compensation | 17,386 | 12,342 | 6,417 | |||||||||||
Amortization of original issue discount on debt | 521 | 840 | 601 | |||||||||||
Accretion of deferred credit | (521) | (840) | (601) | |||||||||||
Net realized (gains) losses on investments | (66) | (625) | 2,947 | |||||||||||
Net change in unrealized (gains) losses on investments | (1,625) | |||||||||||||
Deferred income taxes | (693) | 1,118 | 7,363 | |||||||||||
Excess tax benefits from share-based compensation | (5,310) | (7,006) | (359) | |||||||||||
Net change in assets and liabilities relating to operating activities: | ||||||||||||||
Purchases of equity securities, trading | (3,972) | |||||||||||||
Proceeds from sale of equity securities, trading | 16,712 | |||||||||||||
Income taxes recoverable | 255 | 2,477 | (5,558) | |||||||||||
Income taxes payable | 3,510 | 6,239 | 2,226 | |||||||||||
Other operating assets and liabilities | (1,338) | 5,752 | 1,347 | |||||||||||
Net cash provided by (used in) operating activities | 41,639 | 54,168 | 32,773 | |||||||||||
Cash flows from investing activities: | ||||||||||||||
Capital contributions to subsidiaries | (5,585) | (1,600) | ||||||||||||
Purchases of equity securities, available for sale | (1,442) | (15,836) | (10,357) | |||||||||||
Purchases of fixed maturities, available for sale | (3,000) | (750) | ||||||||||||
Proceeds from sales of equity securities, available for sale | 1,481 | 26,060 | ||||||||||||
Proceeds from sales of fixed maturities, available for sale | 770 | |||||||||||||
Net cash provided by (used in) investing activities | 39 | 2,409 | (12,707) | |||||||||||
Cash flows from financing activities: | ||||||||||||||
Proceeds from borrowings | 20,000 | |||||||||||||
Repayment of debt | (7,000) | (6,000) | ||||||||||||
Preferred stock dividend | (10) | (13) | (29) | |||||||||||
Common stock dividend | (22,287) | (19,240) | (17,725) | |||||||||||
Issuance of common stock | 511 | 73 | ||||||||||||
Purchase of treasury stock | (18,649) | (29,736) | (32,365) | |||||||||||
Purchase of preferred stock | (256) | |||||||||||||
Proceeds received from issuance of contingently redeemable common stock | 19,000 | |||||||||||||
Payments related to tax withholding for share-based compensation | (12,141) | (17,655) | (3,161) | |||||||||||
Excess tax benefits (shortfall) from share-based compensation | 5,310 | 7,006 | 359 | |||||||||||
Net cash provided by (used in) financing activities | (54,522) | (46,565) | (32,921) | |||||||||||
Net increase (decrease) in cash and cash equivalents | (12,844) | 10,012 | (12,855) | |||||||||||
Cash and cash equivalents at beginning of period | $ 14,890 | $ 4,878 | 14,890 | 4,878 | 17,733 | |||||||||
Cash and cash equivalents at end of period | $ 2,046 | $ 14,890 | $ 2,046 | $ 14,890 | $ 4,878 | |||||||||
[1] | See “—Note 8 (Stockholders’ Equity)” for an explanation of events subsequent to December 31, 2014 giving rise to pro-forma stockholders’ equity of $218.9 million as of December 31, 2014. |
Schedule II - Condensed Fina106
Schedule II - Condensed Financial Information of Registrant - Subsequent Events - Additional Information (Detail) - $ / shares | Jan. 14, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Subsequent Event [Line Items] | ||||||||||||||||
Dividends per share declared on outstanding common stock | $ 0.27 | $ 0.12 | $ 0.12 | $ 0.12 | $ 0.25 | $ 0.10 | $ 0.10 | $ 0.10 | $ 0.23 | $ 0.10 | $ 0.08 | $ 0.08 | $ 0.63 | $ 0.55 | $ 0.49 | |
Subsequent Event [Member] | ||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||
Dividends per share declared on outstanding common stock | $ 0.14 | |||||||||||||||
Dividend payable date | Mar. 2, 2016 | |||||||||||||||
Dividends payable, shareholders record date | Feb. 18, 2016 |
Schedule V - Valuation Allow107
Schedule V - Valuation Allowances and Qualifying Accounts (Detail) - Allowance for Doubtful Accounts [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Beginning Balance | $ 357 | $ 446 | $ 530 |
Charges to Earnings | 395 | 431 | 428 |
Deductions | 408 | 520 | 512 |
Ending Balance | $ 344 | $ 357 | $ 446 |
Schedule VI - Supplemental I108
Schedule VI - Supplemental Information Concerning Consolidated Property and Casualty Insurance Operations (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Supplemental Information For Property Casualty Insurance Underwriters [Abstract] | ||||||||||||
Reserves for Unpaid Losses and LAE | $ 98,840 | $ 134,353 | $ 98,840 | $ 134,353 | $ 159,222 | $ 193,241 | ||||||
Incurred Loss and LAE Current Year | 188,040 | 124,011 | 111,560 | |||||||||
Incurred Loss and LAE Prior Years | (301) | (736) | (2,945) | |||||||||
Paid Losses and LAE | 189,442 | 126,910 | 129,803 | |||||||||
Net Investment Income | 1,779 | $ 1,307 | $ 1,207 | $ 862 | 801 | $ 644 | $ 412 | $ 518 | 5,155 | 2,375 | 1,928 | |
Deferred Policy Acquisition Cost ("DPAC") | 60,019 | 25,660 | 60,019 | 25,660 | 15,899 | $ 17,282 | ||||||
Amortization of DPAC | (87,871) | (33,501) | (21,685) | |||||||||
Net Premiums Written | 626,448 | 389,847 | 261,778 | |||||||||
Net Premiums Earned | 150,598 | $ 146,153 | $ 112,888 | $ 94,360 | 95,420 | $ 94,288 | $ 73,362 | $ 63,807 | 503,999 | 326,877 | 267,655 | |
Unearned premiums | $ 442,366 | $ 395,748 | $ 442,366 | $ 395,748 | $ 383,488 |