Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2018 | Oct. 29, 2018 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | UVE | |
Entity Registrant Name | UNIVERSAL INSURANCE HOLDINGS, INC. | |
Entity Central Index Key | 891,166 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 34,938,872 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
ASSETS | ||
Available-for-sale debt securities | $ 760,408 | $ 639,334 |
Available-for-sale short-term investments | 10,000 | |
Equity securities | 69,108 | 62,215 |
Investment real estate, net | 23,720 | 18,474 |
Total invested assets | 853,236 | 730,023 |
Cash and cash equivalents | 252,289 | 213,486 |
Restricted cash and cash equivalents | 2,635 | 2,635 |
Prepaid reinsurance premiums | 228,408 | 132,806 |
Reinsurance recoverable | 158,603 | 182,405 |
Reinsurance receivable, net | 961 | |
Premium receivable, net | 66,017 | 56,500 |
Property and equipment, net | 35,632 | 32,866 |
Deferred policy acquisition costs | 90,643 | 73,059 |
Income taxes recoverable | 5,174 | 9,472 |
Deferred income tax asset, net | 7,948 | 9,286 |
Other assets | 21,723 | 12,461 |
Total assets | 1,723,269 | 1,454,999 |
LIABILITIES: | ||
Unpaid losses and loss adjustment expenses | 158,667 | 248,425 |
Unearned premiums | 629,693 | 532,444 |
Advance premium | 32,839 | 26,216 |
Accounts payable | 2,809 | 2,866 |
Book overdraft | 30,334 | 36,715 |
Reinsurance payable, net | 261,133 | 110,381 |
Other liabilities and accrued expenses | 65,005 | 45,096 |
Long-term debt | 11,765 | 12,868 |
Total liabilities | 1,192,245 | 1,015,011 |
Commitments and Contingencies (Note 12) | ||
STOCKHOLDERS' EQUITY: | ||
Cumulative convertible preferred stock, $.01 par value Authorized shares - 1,000 Issued shares - 10 and 10 Outstanding shares - 10 and 10 Minimum liquidation preference, $9.99 and $9.99 per share | ||
Common stock, $.01 par value Authorized shares - 55,000 Issued shares - 46,318 and 45,778 Outstanding shares - 34,933 and 34,735 | 463 | 458 |
Treasury shares, at cost - 11,385 and 11,043 | (116,239) | (105,123) |
Additional paid-in capital | 88,231 | 86,186 |
Accumulated other comprehensive income (loss), net of taxes | (9,898) | (6,281) |
Retained earnings | 568,467 | 464,748 |
Total stockholders' equity | 531,024 | 439,988 |
Total liabilities and stockholders' equity | $ 1,723,269 | $ 1,454,999 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (Parenthetical) - $ / shares | Sep. 30, 2018 | Dec. 31, 2017 |
Statement Of Financial Position [Abstract] | ||
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 | 10,000 |
Cumulative convertible preferred stock, shares outstanding | 10,000 | 10,000 |
Cumulative convertible preferred stock, minimum liquidation preference | $ 9.99 | $ 9.99 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 55,000,000 | 55,000,000 |
Common stock, shares issued | 46,318,000 | 45,778,000 |
Common stock, shares outstanding | 34,933,000 | 34,735,000 |
Treasury stock, shares | 11,385,000 | 11,043,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
PREMIUMS EARNED AND OTHER REVENUES | ||||
Direct premiums written | $ 309,176 | $ 274,744 | $ 921,941 | $ 816,350 |
Change in unearned premium | (20,772) | (19,935) | (97,249) | (80,543) |
Direct premium earned | 288,404 | 254,809 | 824,692 | 735,807 |
Ceded premium earned | (99,466) | (80,292) | (260,905) | (230,722) |
Premiums earned, net | 188,938 | 174,517 | 563,787 | 505,085 |
Net investment income (expense) | 6,642 | 3,085 | 17,213 | 9,012 |
Net realized gains (losses) on sale of securities | 403 | 803 | (2,093) | 2,450 |
Net change in unrealized gains (losses) of equity securities | (2,473) | (9,103) | ||
Commission revenue | 5,658 | 5,304 | 16,638 | 14,546 |
Policy fees | 5,204 | 4,861 | 15,743 | 14,594 |
Other revenue | 1,783 | 1,673 | 5,258 | 4,917 |
Total premiums earned and other revenues | 206,155 | 190,243 | 607,443 | 550,604 |
OPERATING COSTS AND EXPENSES | ||||
Losses and loss adjustment expenses | 85,947 | 116,375 | 251,715 | 267,129 |
General and administrative expenses | 69,041 | 57,269 | 191,614 | 171,582 |
Total operating costs and expenses | 154,988 | 173,644 | 443,329 | 438,711 |
INCOME BEFORE INCOME TAXES | 51,167 | 16,599 | 164,114 | 111,893 |
Income tax expense | 13,787 | 6,635 | 40,595 | 41,354 |
NET INCOME | $ 37,380 | $ 9,964 | $ 123,519 | $ 70,539 |
Basic earnings per common share | $ 1.07 | $ 0.29 | $ 3.54 | $ 2.02 |
Weighted average common shares outstanding - Basic | 34,861 | 34,686 | 34,870 | 34,927 |
Diluted earnings per common share | $ 1.04 | $ 0.28 | $ 3.45 | $ 1.96 |
Weighted average common shares outstanding - Diluted | 35,919 | 35,615 | 35,754 | 35,917 |
Cash dividend declared per common share | $ 0.16 | $ 0.14 | $ 0.44 | $ 0.42 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net income | $ 37,380 | $ 9,964 | $ 123,519 | $ 70,539 |
Other comprehensive income (loss), net of taxes | (737) | 251 | (6,636) | 4,201 |
Comprehensive income | $ 36,643 | $ 10,215 | $ 116,883 | $ 74,740 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Cash flows from operating activities: | ||
Net cash provided by (used in) operating activities | $ 224,454 | $ 286,195 |
Cash flows from investing activities: | ||
Proceeds from sale of property and equipment | 30 | 17 |
Purchases of property and equipment | (6,141) | (3,655) |
Purchases of equity securities | (23,568) | (47,070) |
Purchases of available-for-sale debt securities | (349,617) | (114,593) |
Purchases of investment real estate, net | (5,553) | (5,023) |
Proceeds from sales of equity securities | 8,285 | 75,027 |
Proceeds from sales of available-for-sale debt securities | 132,801 | 19,643 |
Maturities of available-for-sale debt securities | 83,188 | 75,770 |
Maturities of available-for-sale short-term investments | 10,000 | 5,000 |
Net cash provided by (used in) investing activities | (150,575) | 5,116 |
Cash flows from financing activities: | ||
Preferred stock dividend | (8) | (8) |
Common stock dividend | (15,400) | (9,803) |
Issuance of common stock for stock option exercises | 102 | |
Purchase of treasury stock | (11,116) | (17,884) |
Payments related to tax withholding for share-based compensation | (7,551) | (1,367) |
Repayment of debt | (1,103) | (1,803) |
Net cash provided by (used in) financing activities | (35,076) | (30,865) |
Cash and cash equivalents, and restricted cash and cash equivalents: | ||
Net increase (decrease) during the period | 38,803 | 260,446 |
Balance, beginning of period | 216,121 | 108,365 |
Balance, end of period | $ 254,924 | $ 368,811 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Dec. 31, 2016 |
Statement Of Cash Flows [Abstract] | ||||
Cash and cash equivalents | $ 252,289 | $ 213,486 | ||
Restricted cash and cash equivalents | 2,635 | 2,635 | ||
Total cash and cash equivalents and restricted cash and cash equivalents | $ 254,924 | $ 216,121 | $ 368,811 | $ 108,365 |
Nature of Operations and Basis
Nature of Operations and Basis of Presentation | 9 Months Ended |
Sep. 30, 2018 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Nature of Operations and Basis of Presentation | 1. Nature of Operations and Basis of Presentation Nature of Operations 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 insurance company 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 its network of independent agents. Risk from catastrophic losses is managed through the use of reinsurance agreements. The Company’s primary product is residential homeowners’ insurance currently offered in states 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 on certain reinsurance programs placed by the Insurance Entities, policy fees collected from policyholders by our wholly-owned managing general agent subsidiary and payment plan fees charged to policyholders who choose to pay their premiums in installments. Our wholly-owned adjusting company receives claims-handling fees from the Insurance Entities. The Insurance Entities are reimbursed for these fees on claims that are subject to recovery under the Insurance Entities’ respective reinsurance programs. These fees, after expenses, are recorded in the Condensed Consolidated Financial Statements as an adjustment to losses and loss adjustment expense. Basis of Presentation The Company has prepared the accompanying unaudited Condensed Consolidated Financial Statements (“Financial Statements”) in accordance with the rules and regulations of the United States Securities and Exchange Commission (“SEC”) for interim financial information. Accordingly, the Financial Statements do not include all of the information and footnotes required by United States Generally Accepted Accounting Principles (“U.S. GAAP”) for annual financial statements. Therefore, the Financial Statements should be read in conjunction with the audited Consolidated Financial Statements contained in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2017, filed with the SEC on February 23, 2018. The condensed consolidated balance sheet at December 31, 2017, was derived from audited financial statements, but does not include all disclosures required by U.S. GAAP. In the opinion of management, all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation have been included in the Financial Statements. The results for interim periods do not necessarily indicate the results that may be expected for any other interim period or for the full year. To conform to the current period presentation, certain amounts in the prior periods’ consolidated financial statements and notes have been reclassified. Such reclassifications were of an immaterial amount and had no effect on net income or stockholders’ equity. The Financial Statements include the accounts of UVE and its wholly-owned subsidiaries. All material intercompany balances and transactions have been eliminated in consolidation. Management must make estimates and assumptions that affect amounts reported in the Company’s Financial Statements and in disclosures of contingent assets and liabilities. Actual results could differ from those estimates. |
Significant Accounting Policies
Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | 2. Significant Accounting Policies The Company reported Significant Accounting Policies in its Annual Report on Form 10-K for the year ended December 31, 2017. The following are new or revised disclosures or disclosures required on a quarterly basis. Recently Adopted Accounting Pronouncements In January 2016, the Financial Accounting Standards Board (“FASB”) revised U.S. GAAP with the issuance of Accounting Standards Update (“ASU”) 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities In August 2016, the FASB revised U.S. GAAP with the issuance of ASU 2016-15, Classification of Certain Cash Receipts and Cash Payments In November 2016, the FASB revised U.S. GAAP, Statement of Cash Flows (Topic 230): Restricted Cash In February 2018, the FASB revised U.S. GAAP, Comprehensive Income (Topic 220) Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income |
Investments
Investments | 9 Months Ended |
Sep. 30, 2018 | |
Investments Debt And Equity Securities [Abstract] | |
Investments | 3. Investments Securities Available for Sale The following table provides the amortized cost and fair value of debt and short-term investment securities available for sale as of the dates presented (in thousands): September 30, 2018 Gross Gross Amortized Unrealized Unrealized Cost Gains Losses Fair Value Debt Securities: U.S. government obligations and agencies $ 67,442 $ 15 $ (1,459 ) $ 65,998 Corporate bonds 415,600 532 (6,165 ) 409,967 Mortgage-backed and asset-backed securities 275,128 23 (5,923 ) 269,228 Municipal bonds 3,401 — (123 ) 3,278 Redeemable preferred stock 11,922 206 (191 ) 11,937 Total $ 773,493 $ 776 $ (13,861 ) $ 760,408 December 31, 2017 Gross Gross Amortized Unrealized Unrealized Cost Gains Losses Fair Value Debt Securities: U.S. government obligations and agencies $ 60,481 $ — $ (877 ) $ 59,604 Corporate bonds 228,336 476 (1,308 ) 227,504 Mortgage-backed and asset-backed securities 221,956 19 (2,523 ) 219,452 Municipal bonds 120,883 599 (1,187 ) 120,295 Redeemable preferred stock 12,059 485 (65 ) 12,479 Short-term investments 10,000 — — 10,000 Total $ 653,715 $ 1,579 $ (5,960 ) $ 649,334 The following table provides the credit quality of available-for-sale debt securities with contractual maturities as of the dates presented (dollars in thousands): September 30, 2018 December 31, 2017 (1) % of Total % of Total Average Credit Ratings Fair Value Fair Value Fair Value Fair Value AAA $ 344,801 45.3 % $ 317,313 48.9 % AA 92,411 12.2 % 129,573 20.0 % A 216,074 28.4 % 146,749 22.6 % BBB 103,427 13.6 % 51,020 7.8 % BB+ and Below 117 0.0 % 1,569 0.2 % No Rating Available 3,578 0.5 % 3,110 0.5 % Total $ 760,408 100.0 % $ 649,334 100.0 % (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. The table above includes credit quality ratings by Standard and Poor’s Rating Services, Inc., Moody’s Investors Service, Inc. and Fitch Ratings, Inc. The Company has presented the highest rating of the three rating agencies for each investment position. The following table summarizes the amortized cost and fair value of mortgage-backed and asset-backed securities as of the dates presented (in thousands): September 30, 2018 December 31, 2017 Amortized Amortized Cost Fair Value Cost Fair Value Mortgage-backed Securities: Agency $ 152,068 $ 148,472 $ 118,014 $ 116,014 Non-agency 44,509 44,005 17,676 17,488 Asset-backed Securities: Auto loan receivables 28,983 28,649 35,105 34,962 Credit card receivables 23,836 23,665 38,844 38,719 Other receivables 25,732 24,437 12,317 12,269 Total $ 275,128 $ 269,228 $ 221,956 $ 219,452 The following table summarizes the fair value and gross unrealized losses on available-for-sale debt securities, 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 (dollars in thousands): September 30, 2018 Less Than 12 Months 12 Months or Longer Number of Unrealized Number of Unrealized Issues Fair Value Losses Issues Fair Value Losses Debt Securities: U.S. government obligations and agencies 5 $ 15,734 $ (313 ) 11 $ 40,389 $ (1,146 ) Corporate bonds 413 316,750 (4,599 ) 66 51,245 (1,566 ) Mortgage-backed and asset-backed securities 86 135,530 (1,643 ) 98 109,884 (4,280 ) Municipal bonds 6 3,278 (123 ) — — — Redeemable preferred stock 98 4,739 (154 ) 1 408 (37 ) Total 608 $ 476,031 $ (6,832 ) 176 $ 201,926 $ (7,029 ) December 31, 2017 Less Than 12 Months 12 Months or Longer Number of Unrealized Number of Unrealized Issues Fair Value Losses Issues Fair Value Losses Debt Securities: U.S. government obligations and agencies 7 $ 35,464 $ (301 ) 9 $ 24,140 $ (576 ) Corporate bonds 159 142,208 (792 ) 39 29,796 (516 ) Mortgage-backed and asset-backed securities 83 137,481 (955 ) 37 70,218 (1,568 ) Municipal bonds 36 28,265 (246 ) 30 48,370 (941 ) Redeemable preferred stock 21 2,464 (65 ) — — — Total 306 $ 345,882 $ (2,359 ) 115 $ 172,524 $ (3,601 ) Evaluating Investments for Other Than Temporary Impairment (“OTTI”) As of September 30, 2018, the Company held available-for-sale debt securities that were in an unrealized loss position as presented in the table above. For available-for-sale debt securities with significant declines in value, the Company performs 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 available-for-sale debt securities, the Company considers whether it has the intent and ability to hold the available-for-sale debt 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 on our analysis, our fixed income portfolio is of high quality and we believe that we will recover the amortized cost basis of our available-for-sale debt securities. We continually monitor the credit quality of our investments in available-for-sale debt securities to assess if it is probable that we will receive our contractual or estimated cash flows in the form of principal and interest. Additionally, the Company considers management’s intent and ability to hold the available-for-sale debt securities until recovery and its credit analysis of the individual issuers of the securities. Based on this process and analysis, management has no reason to believe the unrealized losses of the available-for-sale debt securities as of September 30, 2018 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): September 30, 2018 Amortized Fair Value Due in one year or less $ 65,340 $ 65,054 Due after one year through five years 246,639 242,313 Due after five years through ten years 158,771 156,385 Due after ten years 15,693 15,491 Mortgage-backed and asset-backed securities 275,128 269,228 Perpetual maturity securities 11,922 11,937 Total $ 773,493 $ 760,408 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 available-for-sale debt securities and equity securities during the periods presented (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2018 2017 2018 2017 Proceeds from sales and maturities (fair value): Available-for-sale debt securities $ 32,287 $ 49,762 $ 225,989 $ 100,413 Equity securities $ 4,158 $ 18,056 $ 8,285 $ 75,027 Gross realized gains on sale of securities: Available-for-sale debt securities $ 1 $ 302 $ 318 $ 330 Equity securities $ 413 $ 547 $ 714 $ 2,332 Gross realized losses on sale of securities: Available-for-sale debt securities $ (11 ) $ (19 ) $ (3,125 ) $ (59 ) Equity securities $ — $ (27 ) $ — $ (153 ) The following table presents the components of net investment income, comprised primarily of interest and dividends, for the periods presented (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2018 2017 2018 2017 Available-for-sale debt securities $ 4,595 $ 2,977 $ 12,390 $ 8,893 Equity securities 722 348 2,016 1,068 Available-for-sale short-term investments — — 145 22 Other (1) 2,106 319 4,765 651 Total investment income 7,423 3,644 19,316 10,634 Less: Investment expenses (2) (781 ) (559 ) (2,103 ) (1,622 ) Net investment (expense) income $ 6,642 $ 3,085 $ 17,213 $ 9,012 (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 custodial fees, investment accounting, advisory fees and expenses associated with real estate investments. Equity Securities The following table provides details on the realized and unrealized gains and losses related to equity securities for the periods presented (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2018 2017 2018 2017 Net gains and (losses) recognized during the period on equity securities $ (2,060 ) $ 520 $ (8,389 ) $ 2,179 Less: Net (gains) and losses recognized during the period on equity securities sold during the period (413 ) (520 ) (714 ) (2,179 ) Unrealized gains and (losses) recognized during the reporting period on equity securities still held at the reporting period $ (2,473 ) $ — $ (9,103 ) $ — Investment Real Estate Investment real estate consisted of the following as of the dates presented (in thousands): September 30, 2018 December 31, 2017 Income Producing: Investment real estate (1) $ 14,619 $ 6,918 Less: Accumulated depreciation (767 ) (460 ) 13,852 6,458 Non-Income Producing: Properties under development (1) 9,868 12,016 Investment real estate, net $ 23,720 $ 18,474 (1) During the nine months ended September 30, 2018, the Company transferred $7.4 million from properties under development to investment real estate. Depreciation expense related to investment real estate for the periods presented (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2018 2017 2018 2017 Depreciation expense on investment real estate $ 103 $ 45 $ 307 $ 134 |
Reinsurance
Reinsurance | 9 Months Ended |
Sep. 30, 2018 | |
Insurance [Abstract] | |
Reinsurance | 4. Reinsurance The Company seeks to reduce its risk of loss by reinsuring certain levels of risk in various areas of exposure with other insurance enterprises or reinsurers, generally as of the beginning of the hurricane season on June 1st of each year. The Company’s current reinsurance programs consist of catastrophe excess of loss reinsurance, subject to the terms and conditions of the applicable agreements. The Company is responsible for certain retained loss amounts before reinsurance attaches and insured losses related to catastrophes and other events that exceed coverage provided by the reinsurance programs. The Company remains responsible for the settlement of insured losses irrespective of whether any of the reinsurers fail to make payments otherwise due. Amounts recoverable from reinsurers are estimated in a manner consistent with the terms of the reinsurance contracts. Reinsurance premiums, losses and loss adjustment expenses (“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. 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 reinsurers whose aggregate balances due exceeded 3% of the Company’s stockholders’ equity as of the dates presented (in thousands): Ratings as of September 30, 2018 Due from as of Standard and Poor's Moody's AM Best Rating Investors December 31, Reinsurer Company Services, Inc. Service, Inc. 2017 Allianz Risk Transfer A+ AA Aa3 $ 105,573 Florida Hurricane Catastrophe Fund (1) n/a n/a n/a 52,054 Renaissance Reinsurance Ltd A+ A+ A1 22,545 Total (2) $ 180,172 (1) No rating is available, because the fund is not rated. (2) 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 . There were no amounts due from the reinsurers whose aggregate balance exceeded 3% of the Company’s stockholders’ equity as of September 30, 2018. The Company’s reinsurance arrangements had the following effect on certain items in the Condensed Consolidated Statements of Income for the periods presented (in thousands): Three Months Ended September 30, 2018 2017 Losses and Loss Losses and Loss Premiums Premiums Adjustment Premiums Premiums Adjustment Written Earned Expenses Written Earned Expenses Direct $ 309,176 $ 288,404 $ 270,158 $ 274,744 $ 254,809 $ 531,268 Ceded (17,256 ) (99,466 ) (184,211 ) (7,303 ) (80,292 ) (414,893 ) Net $ 291,920 $ 188,938 $ 85,947 $ 267,441 $ 174,517 $ 116,375 Nine Months Ended September 30, 2018 2017 Losses and Loss Losses and Loss Premiums Premiums Adjustment Premiums Premiums Adjustment Written Earned Expenses Written Earned Expenses Direct $ 921,941 $ 824,692 $ 593,419 $ 816,350 $ 735,807 $ 687,707 Ceded (356,507 ) (260,905 ) (341,704 ) (318,827 ) (230,722 ) (420,578 ) Net $ 565,434 $ 563,787 $ 251,715 $ 497,523 $ 505,085 $ 267,129 The following prepaid reinsurance premiums and reinsurance recoverable and receivable are reflected in the Condensed Consolidated Balance Sheets as of the dates presented (in thousands): September 30, December 31, 2018 2017 Prepaid reinsurance premiums $ 228,408 $ 132,806 Reinsurance recoverable on paid losses and LAE $ 27,037 $ — Reinsurance recoverable on unpaid losses and LAE 131,566 182,405 Reinsurance receivable, net 961 — Reinsurance recoverable and receivable $ 159,564 $ 182,405 |
Insurance Operations
Insurance Operations | 9 Months Ended |
Sep. 30, 2018 | |
Insurance [Abstract] | |
Insurance Operations | 5. Insurance Operations Deferred Policy Acquisition Costs The Company defers certain costs relating to written premium, called Deferred Policy Acquisition Costs (“DPAC”). 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 for the periods presented (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2018 2017 2018 2017 DPAC, beginning of period $ 88,756 $ 73,591 $ 73,059 $ 64,912 Capitalized Costs 44,389 36,999 136,758 110,653 Amortization of DPAC (42,502 ) (34,656 ) (119,174 ) (99,631 ) DPAC, end of period $ 90,643 $ 75,934 $ 90,643 $ 75,934 Regulatory Requirements and Restrictions The Insurance Entities are subject to regulations and standards of the Florida Office of Insurance Regulation (“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 the Florida Insurance Code. 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 Insurance Code, and based on the calculations performed by the Company as of December 31, 2017, UPCIC has the capacity to pay ordinary dividends of $36.2 million during 2018. The Florida Insurance Code requires insurance companies to maintain capitalization equivalent to the greater of ten percent of the insurer’s total liabilities but not less than $10.0 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): September 30, December 31, 2018 2017 Ten percent of total liabilities UPCIC $ 88,901 $ 72,633 APPCIC $ 538 $ 572 Statutory capital and surplus UPCIC $ 343,302 $ 307,686 APPCIC $ 16,045 $ 16,633 As of the dates in the table above, both UPCIC and APPCIC exceeded the minimum statutory capitalization requirement. UPCIC also met the capitalization requirements of the other states in which it is licensed as of September 30, 2018. UPCIC and APPCIC are also required to adhere to prescribed premium-to-capital surplus ratios and have met those requirements at such dates. The following table summarizes combined net income (loss) for UPCIC and APPCIC determined in accordance with statutory accounting practices for the periods presented (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2018 2017 2018 2017 Combined net income (loss) $ 5,468 $ (9,662 ) $ 49,190 $ 33,532 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): September 30, December 31, 2018 2017 Restricted cash and cash equivalents $ 2,635 $ 2,635 Investments $ 3,914 $ 3,910 |
Liability for Unpaid Losses and
Liability for Unpaid Losses and Loss Adjustment Expenses | 9 Months Ended |
Sep. 30, 2018 | |
Insurance Loss Reserves [Abstract] | |
Liability for Unpaid Losses and Loss Adjustment Expenses | 6. Set forth in the following table is the change in liability for unpaid losses and LAE for the periods presented (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2018 2017 2018 2017 Balance at beginning of period $ 151,916 $ 22,645 $ 248,425 $ 58,494 Less: Reinsurance recoverable (net of payable offsets) (96,733 ) (1,393 ) (182,405 ) (106 ) Net balance at beginning of period 55,183 21,252 66,020 58,388 Incurred (recovered) related to: Current year 85,986 116,262 249,488 265,811 Prior years (39 ) 113 2,227 1,318 Total incurred 85,947 116,375 251,715 267,129 Paid related to: Current year 72,034 93,969 140,013 179,000 Prior years 38,372 15,912 146,998 118,771 Total paid 110,406 109,881 287,011 297,771 Net balance at end of period 30,724 27,746 30,724 27,746 Plus: Reinsurance recoverable (net of payable offsets) 127,943 412,697 127,943 412,697 Balance at end of period $ 158,667 $ 440,443 $ 158,667 $ 440,443 D uring the third quarter of 2018, the Company recorded prior year adverse development to increase its estimate of ultimate losses for the third quarter 2017 storm, Hurricane Irma, to $754.0 million from $446.7 million recorded as of 2017 year-end. The prior year adverse development of $311.7 million in direct losses resulted in net losses of $2.2 million after the benefit of reinsurance recoveries, including those related to Hurricane Irma. The increase in the ultimate loss and LAE from Hurricane Irma was the result of a continuation of new reported claims and litigation costs associated with the aggressive nature of plaintiff attorneys on claims in Florida. The nine months ended September 30, 2017 included prior year loss reserve development of $6.9 million on a direct basis ($1.3 million on a net basis), primarily reflecting strengthening of reserves for the fourth quarter 2016 storm, Hurricane Matthew. |
Long-Term Debt
Long-Term Debt | 9 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | 7. Long-Term Debt Long-term debt consists of the following as of the dates presented (in thousands): September 30, December 31, 2018 2017 Surplus note $ 11,765 $ 12,868 In 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. UPCIC was in compliance with the terms of the surplus note as of September 30, 2018. |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Sep. 30, 2018 | |
Equity [Abstract] | |
Stockholders' Equity | 8. Stockholders’ Equity Common Stock The following table summarizes the activity relating to shares of the Company’s common stock during the nine months ended September 30, 2018 (in thousands): Issued Treasury Outstanding Shares Shares Shares Balance, as of December 31, 2017 45,778 (11,043 ) 34,735 Shares repurchased — (342 ) (342 ) Vesting of performance share units 127 — 127 Stock option exercises 1,325 — 1,325 Restricted stock grants 50 — 50 Shares acquired through cashless exercise (1) — (962 ) (962 ) Shares cancelled (962 ) 962 — Balance, as of September 30, 2018 46,318 (11,385 ) 34,933 (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 performance share units vested. These shares have been cancelled by the Company. In September 2017, UVE’s Board of Directors authorized a share repurchase program under which UVE may repurchase in the open market in compliance with Exchange Act Rule 10b-18, up to $20 million of the Company’s outstanding shares of common stock through December 31, 2018. During the nine months ended September 30, 2018, UVE repurchased 342,749 shares, at an aggregate price of approximately $11.1 million, pursuant to such repurchase program. Dividends The following table summarizes the dividends declared and paid by the Company: Dividend Shareholders Dividend Cash Dividend 2018 Declared Date Record Date Payable Date Per Share Amount First Quarter January 22, 2018 February 28, 2018 March 12, 2018 $ 0.14 Second Quarter April 12, 2018 April 27, 2018 May 4, 2018 $ 0.14 Third Quarter May 29, 2018 July 2, 2018 July 16, 2018 $ 0.16 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 9. Income Taxes During the three months ended September 30, 2018 and 2017, the Company recorded approximately $13.8 million and $6.6 million of income tax expense, respectively. The effective tax rate (“ETR”) f During the nine months ended September 30, 2018 and 2017, the Company recorded approximately $40.6 million and $41.4 million of income tax expense, respectively. The ETR for the nine months ended September 30, 2018 was 24.7% compared to a 37.0% ETR for the same period in 2017. In arriving at these rates, the Company considers a variety of factors including the forecasted full year pre-tax results, the U.S. federal tax rate , Income tax expense for the three months ended September 30, 2018 included a net debit for discrete items of $0.2 million driven by an income tax accrual adjustment of $0.9 million relating to return to provision true ups for federal and state jurisdictions, offset by excess tax benefits of $0.7 million resulting from stock-based compensation awards that were exercised during the third quarter in 2018, which thereby increased the current quarter’s ETR by 0.4 percent. Income tax expense for the three months ended September 30, 2017 included a net credit for discrete items of $0.2 million relating to prior year return to provision true ups for federal and state jurisdictions. Income tax expense for the nine months ended September 30, 2018 included a net credit of $2.0 million driven by the excess tax benefits of $3.3 million The Company’s income tax provision reflects an estimated annual ETR of 26.0% for 2018, calculated before the impact of discrete items. The statutory tax rate consists of a federal income tax rate of 21% and a state income tax rate, net of federal benefit, of 3.7%. The Company files its tax returns as prescribed by the tax laws of the jurisdictions in which it operates. As of September 30, 2018, the Company’s 2015 through 2017 tax years are still subject to examination by the Internal Revenue Service (“IRS”) and various tax years remain open to examination in certain state jurisdictions. In February 2018, the Company received notification from the IRS with respect to an examination of the 2015 tax return. During the third quarter in 2018, the IRS completed its examination of the Company for the 2015 tax year and issued a final Revenue Agent Report with no adjustments. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 10. Earnings Per Share Basic earnings per share (“EPS”) is computed 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 the exercises of stock options, vesting of restricted stock, vesting of performance share units, and conversion of preferred stock. The following table reconciles the numerator (i.e., income) and denominator (i.e., shares) of the basic and diluted earnings per share computations for the periods presented (in thousands, except per share data): Three Months Ended Nine Months Ended September 30, September 30, 2018 2017 2018 2017 Numerator for EPS: Net income $ 37,380 $ 9,964 $ 123,519 $ 70,539 Less: Preferred stock dividends (3 ) (3 ) (8 ) (8 ) Income available to common stockholders $ 37,377 $ 9,961 $ 123,511 $ 70,531 Denominator for EPS: Weighted average common shares outstanding 34,861 34,686 34,870 34,927 Plus: Assumed conversion of share-based compensation (1) 1,033 904 859 965 Assumed conversion of preferred stock 25 25 25 25 Weighted average diluted common shares outstanding 35,919 35,615 35,754 35,917 Basic earnings per common share $ 1.07 $ 0.29 $ 3.54 $ 2.02 Diluted earnings per common share $ 1.04 $ 0.28 $ 3.45 $ 1.96 (1) Represents the dilutive effect of unvested restricted stock, unvested performance share units and unexercised stock options. |
Other Comprehensive Income (Los
Other Comprehensive Income (Loss) | 9 Months Ended |
Sep. 30, 2018 | |
Equity [Abstract] | |
Other Comprehensive Income (Loss) | 11. Other Comprehensive Income (Loss) The following table provides the components of other comprehensive income (loss) on a pre-tax and after-tax basis for the periods presented (in thousands): Three Months Ended September 30, 2018 2017 Pre-tax Tax After-tax Pre-tax Tax After-tax Net changes related to available-for-sale securities: Unrealized holding gains (losses) arising during the period $ (989 ) $ (244 ) $ (745 ) $ 1,207 $ 461 $ 746 Less: Reclassification adjustment for (gains) losses realized in net income 10 2 8 (803 ) (308 ) (495 ) Other comprehensive income (loss) (979 ) (242 ) (737 ) 404 153 251 Reclassification adjustments to retained earnings (1) — — — — — — Change in accumulated other comprehensive income (loss) $ (979 ) $ (242 ) $ (737 ) $ 404 $ 153 $ 251 Nine Months Ended September 30, 2018 2017 Pre-tax Tax After-tax Pre-tax Tax After-tax Net changes related to available-for-sale securities: Unrealized holding gains (losses) arising during the period $ (11,511 ) $ (2,751 ) $ (8,760 ) $ 9,248 $ 3,535 $ 5,713 Less: Reclassification adjustment for (gains) losses realized in net income 2,807 683 2,124 (2,450 ) (938 ) (1,512 ) Other comprehensive income (loss) (8,704 ) (2,068 ) (6,636 ) 6,798 2,597 4,201 Reclassification adjustments to retained earnings (1) 5,830 2,811 3,019 — — — Change in accumulated other comprehensive income (loss) $ (2,874 ) $ 743 $ (3,617 ) $ 6,798 $ 2,597 $ 4,201 (1) This amount represents reclassifications to retained earnings associated with the disproportional income tax effects of the Tax Act on items within AOCI and unrealized losses in AOCI relating to Available for Sale equity security investments. See “—Note 2 (Significant Accounting Policies — Recently Adopted Accounting Pronouncements)” for more information. The following table provides the reclassifications adjustment for gains (losses) out of accumulated other comprehensive income for the periods presented (in thousands): Amount Reclassified from Accumulated Other Comprehensive Income (Loss) Details about Accumulated Other Comprehensive Three Months Ended September 30, Nine Months Ended September 30, Affected Line Item in the Statement Income (Loss) Components 2018 2017 2018 2017 Where Net Income is Presented Unrealized gains (losses) on available-for-sale debt securities $ (10 ) $ 803 $ (2,807 ) $ 2,450 Net realized gains (losses) sale of securities 2 (308 ) 683 (938 ) Income taxes Total reclassification for the period $ (8 ) $ 495 $ (2,124 ) $ 1,512 Net of tax |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 12. Commitments and Contingencies Obligations under Multi-Year Reinsurance Contracts We purchase reinsurance coverage to protect our capital and to limit our losses when major events occur. Our reinsurance commitments run from June 1 of the current year to May 31 of the following year. Certain of our reinsurance agreements are for periods longer than one year. Amounts payable for coverage during the current June 1 st st Litigation Lawsuits are filed against the Company from time to time. Many of these lawsuits involve claims under policies that we underwrite and reserve for as an insurer. We are also involved in various other legal proceedings and litigation unrelated to claims under our policies that arise in the ordinary course of business operations. Management believes that any liabilities that may arise as a result of these legal matters will not have a material adverse effect on our financial condition or results of operations. The Company contests liability and/or the amount of damages as appropriate in each pending matter. In accordance with applicable accounting guidance, the Company establishes an accrued liability for legal matters when those matters present loss contingencies that are both probable and estimable. Legal proceedings are subject to many uncertain factors that generally cannot be predicted with assurance, and the Company may be exposed to losses in excess of any amounts accrued. The Company currently estimates 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 the Company is 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. These estimates of possible loss do not represent our maximum loss exposure, and actual results may vary significantly from current estimates. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 13. 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. Municipal bonds: Comprise fixed income securities issued by a state, municipality or county. 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. 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 re-measurement 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. 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 measured at fair value on a recurring basis as of the dates presented (in thousands): Fair Value Measurements September 30, 2018 Level 1 Level 2 Level 3 Total Available-For-Sale Debt Securities: Fixed Maturities: U.S. government obligations and agencies $ — $ 65,998 $ — $ 65,998 Corporate bonds — 409,967 — 409,967 Mortgage-backed and asset-backed securities — 269,228 — 269,228 Municipal bonds — 3,278 — 3,278 Redeemable preferred stock — 11,937 — 11,937 Equity Securities: Common stock 20,575 — — 20,575 Mutual funds 48,533 — — 48,533 Total assets accounted for at fair value $ 69,108 $ 760,408 $ — $ 829,516 Fair Value Measurements December 31, 2017 Level 1 Level 2 Level 3 Total Available-For-Sale Debt Securities: Fixed Maturities: U.S. government obligations and agencies $ — $ 59,604 $ — $ 59,604 Corporate bonds — 227,504 — 227,504 Mortgage-backed and asset-backed securities — 219,452 — 219,452 Municipal bonds — 120,295 — 120,295 Redeemable preferred stock — 12,479 — 12,479 Equity Securities: Common stock 18,811 — — 18,811 Mutual funds 43,404 — — 43,404 Available-for-sale short-term investments — 10,000 — 10,000 Total assets accounted for at fair value $ 62,215 $ 649,334 $ — $ 711,549 The Company utilizes third-party independent pricing services that provide a price quote for each available-for-sale debt security, equity security and available-for-sale 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 available-for-sale debt securities, equity securities or available-for-sale short-term investments included in the tables above. The following table summarizes the carrying value and estimated fair values of the Company’s financial instruments not carried at fair value as of the dates presented (in thousands): September 30, 2018 December 31, 2017 (Level 3) (Level 3) Estimated Estimated Carrying Value Carrying Value Liabilities (debt): Surplus note $ 11,765 $ 10,501 $ 12,868 $ 11,630 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. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | 14. Subsequent Events The Company performed an evaluation of subsequent events through the date the Financial Statements were issued and determined there were no recognized or unrecognized subsequent events that would require an adjustment or additional disclosure in the Financial Statements as of September 30, 2018. Hurricane Michael initially made landfall as a strong Category 4 hurricane along the Florida Panhandle on October 10, 2018, primarily impacting Florida, Georgia, and several other Southeastern U.S. states. The storm is expected to produce gross losses and loss adjustment expenses of $300-350 million for the Company, resulting in anticipated total net pre-tax losses and loss adjustment expenses of $35 million. However, to the extent the Company experiences any additional reinsurance recoveries from its supplemental Non-Florida reinsurance program, those recoveries could serve to partially reduce this $35 million retention. |
Nature of Operations and Basi_2
Nature of Operations and Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The Company has prepared the accompanying unaudited Condensed Consolidated Financial Statements (“Financial Statements”) in accordance with the rules and regulations of the United States Securities and Exchange Commission (“SEC”) for interim financial information. Accordingly, the Financial Statements do not include all of the information and footnotes required by United States Generally Accepted Accounting Principles (“U.S. GAAP”) for annual financial statements. Therefore, the Financial Statements should be read in conjunction with the audited Consolidated Financial Statements contained in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2017, filed with the SEC on February 23, 2018. The condensed consolidated balance sheet at December 31, 2017, was derived from audited financial statements, but does not include all disclosures required by U.S. GAAP. In the opinion of management, all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation have been included in the Financial Statements. The results for interim periods do not necessarily indicate the results that may be expected for any other interim period or for the full year. To conform to the current period presentation, certain amounts in the prior periods’ consolidated financial statements and notes have been reclassified. Such reclassifications were of an immaterial amount and had no effect on net income or stockholders’ equity. The Financial Statements include the accounts of UVE and its wholly-owned subsidiaries. All material intercompany balances and transactions have been eliminated in consolidation. Management must make estimates and assumptions that affect amounts reported in the Company’s Financial Statements and in disclosures of contingent assets and liabilities. Actual results could differ from those estimates. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements In January 2016, the Financial Accounting Standards Board (“FASB”) revised U.S. GAAP with the issuance of Accounting Standards Update (“ASU”) 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities In August 2016, the FASB revised U.S. GAAP with the issuance of ASU 2016-15, Classification of Certain Cash Receipts and Cash Payments In November 2016, the FASB revised U.S. GAAP, Statement of Cash Flows (Topic 230): Restricted Cash In February 2018, the FASB revised U.S. GAAP, Comprehensive Income (Topic 220) Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income |
Investments (Tables)
Investments (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Investments Available For Sale Debt Securities [Abstract] | |
Cost or Amortized Cost and Fair Value of Debt and Short-term Investment Securities Available for Sale | The following table provides the amortized cost and fair value of debt and short-term investment securities available for sale as of the dates presented (in thousands): September 30, 2018 Gross Gross Amortized Unrealized Unrealized Cost Gains Losses Fair Value Debt Securities: U.S. government obligations and agencies $ 67,442 $ 15 $ (1,459 ) $ 65,998 Corporate bonds 415,600 532 (6,165 ) 409,967 Mortgage-backed and asset-backed securities 275,128 23 (5,923 ) 269,228 Municipal bonds 3,401 — (123 ) 3,278 Redeemable preferred stock 11,922 206 (191 ) 11,937 Total $ 773,493 $ 776 $ (13,861 ) $ 760,408 December 31, 2017 Gross Gross Amortized Unrealized Unrealized Cost Gains Losses Fair Value Debt Securities: U.S. government obligations and agencies $ 60,481 $ — $ (877 ) $ 59,604 Corporate bonds 228,336 476 (1,308 ) 227,504 Mortgage-backed and asset-backed securities 221,956 19 (2,523 ) 219,452 Municipal bonds 120,883 599 (1,187 ) 120,295 Redeemable preferred stock 12,059 485 (65 ) 12,479 Short-term investments 10,000 — — 10,000 Total $ 653,715 $ 1,579 $ (5,960 ) $ 649,334 |
Schedule of Credit Quality of Available-for-sale Debt Securities With Contractual Maturities | The following table provides the credit quality of available-for-sale debt securities with contractual maturities as of the dates presented (dollars in thousands): September 30, 2018 December 31, 2017 (1) % of Total % of Total Average Credit Ratings Fair Value Fair Value Fair Value Fair Value AAA $ 344,801 45.3 % $ 317,313 48.9 % AA 92,411 12.2 % 129,573 20.0 % A 216,074 28.4 % 146,749 22.6 % BBB 103,427 13.6 % 51,020 7.8 % BB+ and Below 117 0.0 % 1,569 0.2 % No Rating Available 3,578 0.5 % 3,110 0.5 % Total $ 760,408 100.0 % $ 649,334 100.0 % (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. |
Schedule of Amortized Cost and Fair Value on Mortgage-Backed and Asset-Backed Securities | The following table summarizes the amortized cost and fair value of mortgage-backed and asset-backed securities as of the dates presented (in thousands): September 30, 2018 December 31, 2017 Amortized Amortized Cost Fair Value Cost Fair Value Mortgage-backed Securities: Agency $ 152,068 $ 148,472 $ 118,014 $ 116,014 Non-agency 44,509 44,005 17,676 17,488 Asset-backed Securities: Auto loan receivables 28,983 28,649 35,105 34,962 Credit card receivables 23,836 23,665 38,844 38,719 Other receivables 25,732 24,437 12,317 12,269 Total $ 275,128 $ 269,228 $ 221,956 $ 219,452 |
Summarized Fair Value and Gross Unrealized Losses on Available-for-sale Debt Securities | The following table summarizes the fair value and gross unrealized losses on available-for-sale debt securities, 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 (dollars in thousands): September 30, 2018 Less Than 12 Months 12 Months or Longer Number of Unrealized Number of Unrealized Issues Fair Value Losses Issues Fair Value Losses Debt Securities: U.S. government obligations and agencies 5 $ 15,734 $ (313 ) 11 $ 40,389 $ (1,146 ) Corporate bonds 413 316,750 (4,599 ) 66 51,245 (1,566 ) Mortgage-backed and asset-backed securities 86 135,530 (1,643 ) 98 109,884 (4,280 ) Municipal bonds 6 3,278 (123 ) — — — Redeemable preferred stock 98 4,739 (154 ) 1 408 (37 ) Total 608 $ 476,031 $ (6,832 ) 176 $ 201,926 $ (7,029 ) December 31, 2017 Less Than 12 Months 12 Months or Longer Number of Unrealized Number of Unrealized Issues Fair Value Losses Issues Fair Value Losses Debt Securities: U.S. government obligations and agencies 7 $ 35,464 $ (301 ) 9 $ 24,140 $ (576 ) Corporate bonds 159 142,208 (792 ) 39 29,796 (516 ) Mortgage-backed and asset-backed securities 83 137,481 (955 ) 37 70,218 (1,568 ) Municipal bonds 36 28,265 (246 ) 30 48,370 (941 ) Redeemable preferred stock 21 2,464 (65 ) — — — Total 306 $ 345,882 $ (2,359 ) 115 $ 172,524 $ (3,601 ) |
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): September 30, 2018 Amortized Fair Value Due in one year or less $ 65,340 $ 65,054 Due after one year through five years 246,639 242,313 Due after five years through ten years 158,771 156,385 Due after ten years 15,693 15,491 Mortgage-backed and asset-backed securities 275,128 269,228 Perpetual maturity securities 11,922 11,937 Total $ 773,493 $ 760,408 |
Summary of Available-for-sale Debt Securities and Equity Securities | The following table provides certain information related to available-for-sale debt securities and equity securities during the periods presented (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2018 2017 2018 2017 Proceeds from sales and maturities (fair value): Available-for-sale debt securities $ 32,287 $ 49,762 $ 225,989 $ 100,413 Equity securities $ 4,158 $ 18,056 $ 8,285 $ 75,027 Gross realized gains on sale of securities: Available-for-sale debt securities $ 1 $ 302 $ 318 $ 330 Equity securities $ 413 $ 547 $ 714 $ 2,332 Gross realized losses on sale of securities: Available-for-sale debt securities $ (11 ) $ (19 ) $ (3,125 ) $ (59 ) Equity securities $ — $ (27 ) $ — $ (153 ) |
Investment Income (Expense) Comprised Primarily of Interest and Dividends | The following table presents the components of net investment income, comprised primarily of interest and dividends, for the periods presented (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2018 2017 2018 2017 Available-for-sale debt securities $ 4,595 $ 2,977 $ 12,390 $ 8,893 Equity securities 722 348 2,016 1,068 Available-for-sale short-term investments — — 145 22 Other (1) 2,106 319 4,765 651 Total investment income 7,423 3,644 19,316 10,634 Less: Investment expenses (2) (781 ) (559 ) (2,103 ) (1,622 ) Net investment (expense) income $ 6,642 $ 3,085 $ 17,213 $ 9,012 (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 custodial fees, investment accounting, advisory fees and expenses associated with real estate investments. |
Summary of Details on Realized and Unrealized Gains and Losses Related to Equity Securities | The following table provides details on the realized and unrealized gains and losses related to equity securities for the periods presented (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2018 2017 2018 2017 Net gains and (losses) recognized during the period on equity securities $ (2,060 ) $ 520 $ (8,389 ) $ 2,179 Less: Net (gains) and losses recognized during the period on equity securities sold during the period (413 ) (520 ) (714 ) (2,179 ) Unrealized gains and (losses) recognized during the reporting period on equity securities still held at the reporting period $ (2,473 ) $ — $ (9,103 ) $ — |
Schedule of Real Estate Investment | Investment real estate consisted of the following as of the dates presented (in thousands): September 30, 2018 December 31, 2017 Income Producing: Investment real estate (1) $ 14,619 $ 6,918 Less: Accumulated depreciation (767 ) (460 ) 13,852 6,458 Non-Income Producing: Properties under development (1) 9,868 12,016 Investment real estate, net $ 23,720 $ 18,474 (1) During the nine months ended September 30, 2018, the Company transferred $7.4 million from properties under development to investment real estate. |
Schedule of Depreciation Expense Related to Investment Real Estate | Depreciation expense related to investment real estate for the periods presented (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2018 2017 2018 2017 Depreciation expense on investment real estate $ 103 $ 45 $ 307 $ 134 |
Reinsurance (Tables)
Reinsurance (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Insurance [Abstract] | |
Current Ratings from Rating Agencies and Unsecured Net Amounts Due from Insurance Entities' Reinsurers Whose Aggregate Balance Exceeded 3% of Stockholders' Equity | The following table presents ratings from rating agencies and the unsecured amounts due from the reinsurers whose aggregate balances due exceeded 3% of the Company’s stockholders’ equity as of the dates presented (in thousands): Ratings as of September 30, 2018 Due from as of Standard and Poor's Moody's AM Best Rating Investors December 31, Reinsurer Company Services, Inc. Service, Inc. 2017 Allianz Risk Transfer A+ AA Aa3 $ 105,573 Florida Hurricane Catastrophe Fund (1) n/a n/a n/a 52,054 Renaissance Reinsurance Ltd A+ A+ A1 22,545 Total (2) $ 180,172 (1) No rating is available, because the fund is not rated. (2) 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 . |
Summary of Effects of Insurance Entities' Reinsurance Arrangements | The Company’s reinsurance arrangements had the following effect on certain items in the Condensed Consolidated Statements of Income for the periods presented (in thousands): Three Months Ended September 30, 2018 2017 Losses and Loss Losses and Loss Premiums Premiums Adjustment Premiums Premiums Adjustment Written Earned Expenses Written Earned Expenses Direct $ 309,176 $ 288,404 $ 270,158 $ 274,744 $ 254,809 $ 531,268 Ceded (17,256 ) (99,466 ) (184,211 ) (7,303 ) (80,292 ) (414,893 ) Net $ 291,920 $ 188,938 $ 85,947 $ 267,441 $ 174,517 $ 116,375 Nine Months Ended September 30, 2018 2017 Losses and Loss Losses and Loss Premiums Premiums Adjustment Premiums Premiums Adjustment Written Earned Expenses Written Earned Expenses Direct $ 921,941 $ 824,692 $ 593,419 $ 816,350 $ 735,807 $ 687,707 Ceded (356,507 ) (260,905 ) (341,704 ) (318,827 ) (230,722 ) (420,578 ) Net $ 565,434 $ 563,787 $ 251,715 $ 497,523 $ 505,085 $ 267,129 |
Prepaid Reinsurance Premiums and Reinsurance Recoverable and Receivable | The following prepaid reinsurance premiums and reinsurance recoverable and receivable are reflected in the Condensed Consolidated Balance Sheets as of the dates presented (in thousands): September 30, December 31, 2018 2017 Prepaid reinsurance premiums $ 228,408 $ 132,806 Reinsurance recoverable on paid losses and LAE $ 27,037 $ — Reinsurance recoverable on unpaid losses and LAE 131,566 182,405 Reinsurance receivable, net 961 — Reinsurance recoverable and receivable $ 159,564 $ 182,405 |
Insurance Operations (Tables)
Insurance Operations (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Insurance [Abstract] | |
Beginning and Ending Balances and Changes in DPAC | The following table presents the beginning and ending balances and the changes in DPAC for the periods presented (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2018 2017 2018 2017 DPAC, beginning of period $ 88,756 $ 73,591 $ 73,059 $ 64,912 Capitalized Costs 44,389 36,999 136,758 110,653 Amortization of DPAC (42,502 ) (34,656 ) (119,174 ) (99,631 ) DPAC, end of period $ 90,643 $ 75,934 $ 90,643 $ 75,934 |
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): September 30, December 31, 2018 2017 Ten percent of total liabilities UPCIC $ 88,901 $ 72,633 APPCIC $ 538 $ 572 Statutory capital and surplus UPCIC $ 343,302 $ 307,686 APPCIC $ 16,045 $ 16,633 |
Summary of Combined Net Income (Loss) for UPCIC and APPCIC | The following table summarizes combined net income (loss) for UPCIC and APPCIC determined in accordance with statutory accounting practices for the periods presented (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2018 2017 2018 2017 Combined net income (loss) $ 5,468 $ (9,662 ) $ 49,190 $ 33,532 |
Assets Held by Insurance Regulators | The following table represents assets held by insurance regulators as of the dates presented (in thousands): September 30, December 31, 2018 2017 Restricted cash and cash equivalents $ 2,635 $ 2,635 Investments $ 3,914 $ 3,910 |
Liability for Unpaid Losses a_2
Liability for Unpaid Losses and Loss Adjustment Expenses (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Insurance Loss Reserves [Abstract] | |
Change in Liability for Unpaid Losses and LAE | Set forth in the following table is the change in liability for unpaid losses and LAE for the periods presented (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2018 2017 2018 2017 Balance at beginning of period $ 151,916 $ 22,645 $ 248,425 $ 58,494 Less: Reinsurance recoverable (net of payable offsets) (96,733 ) (1,393 ) (182,405 ) (106 ) Net balance at beginning of period 55,183 21,252 66,020 58,388 Incurred (recovered) related to: Current year 85,986 116,262 249,488 265,811 Prior years (39 ) 113 2,227 1,318 Total incurred 85,947 116,375 251,715 267,129 Paid related to: Current year 72,034 93,969 140,013 179,000 Prior years 38,372 15,912 146,998 118,771 Total paid 110,406 109,881 287,011 297,771 Net balance at end of period 30,724 27,746 30,724 27,746 Plus: Reinsurance recoverable (net of payable offsets) 127,943 412,697 127,943 412,697 Balance at end of period $ 158,667 $ 440,443 $ 158,667 $ 440,443 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt | Long-term debt consists of the following as of the dates presented (in thousands): September 30, December 31, 2018 2017 Surplus note $ 11,765 $ 12,868 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Equity [Abstract] | |
Activity Relating to Common Shares | The following table summarizes the activity relating to shares of the Company’s common stock during the nine months ended September 30, 2018 (in thousands): Issued Treasury Outstanding Shares Shares Shares Balance, as of December 31, 2017 45,778 (11,043 ) 34,735 Shares repurchased — (342 ) (342 ) Vesting of performance share units 127 — 127 Stock option exercises 1,325 — 1,325 Restricted stock grants 50 — 50 Shares acquired through cashless exercise (1) — (962 ) (962 ) Shares cancelled (962 ) 962 — Balance, as of September 30, 2018 46,318 (11,385 ) 34,933 (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 performance share units vested. These shares have been cancelled by the Company. |
Summary of Dividends Declared and Paid | The following table summarizes the dividends declared and paid by the Company: Dividend Shareholders Dividend Cash Dividend 2018 Declared Date Record Date Payable Date Per Share Amount First Quarter January 22, 2018 February 28, 2018 March 12, 2018 $ 0.14 Second Quarter April 12, 2018 April 27, 2018 May 4, 2018 $ 0.14 Third Quarter May 29, 2018 July 2, 2018 July 16, 2018 $ 0.16 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
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): Three Months Ended Nine Months Ended September 30, September 30, 2018 2017 2018 2017 Numerator for EPS: Net income $ 37,380 $ 9,964 $ 123,519 $ 70,539 Less: Preferred stock dividends (3 ) (3 ) (8 ) (8 ) Income available to common stockholders $ 37,377 $ 9,961 $ 123,511 $ 70,531 Denominator for EPS: Weighted average common shares outstanding 34,861 34,686 34,870 34,927 Plus: Assumed conversion of share-based compensation (1) 1,033 904 859 965 Assumed conversion of preferred stock 25 25 25 25 Weighted average diluted common shares outstanding 35,919 35,615 35,754 35,917 Basic earnings per common share $ 1.07 $ 0.29 $ 3.54 $ 2.02 Diluted earnings per common share $ 1.04 $ 0.28 $ 3.45 $ 1.96 (1) Represents the dilutive effect of unvested restricted stock, unvested performance share units and unexercised stock options. |
Other Comprehensive Income (L_2
Other Comprehensive Income (Loss) (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Equity [Abstract] | |
Components of Other Comprehensive Income (Loss) Pre-Tax and After-Tax | The following table provides the components of other comprehensive income (loss) on a pre-tax and after-tax basis for the periods presented (in thousands): Three Months Ended September 30, 2018 2017 Pre-tax Tax After-tax Pre-tax Tax After-tax Net changes related to available-for-sale securities: Unrealized holding gains (losses) arising during the period $ (989 ) $ (244 ) $ (745 ) $ 1,207 $ 461 $ 746 Less: Reclassification adjustment for (gains) losses realized in net income 10 2 8 (803 ) (308 ) (495 ) Other comprehensive income (loss) (979 ) (242 ) (737 ) 404 153 251 Reclassification adjustments to retained earnings (1) — — — — — — Change in accumulated other comprehensive income (loss) $ (979 ) $ (242 ) $ (737 ) $ 404 $ 153 $ 251 Nine Months Ended September 30, 2018 2017 Pre-tax Tax After-tax Pre-tax Tax After-tax Net changes related to available-for-sale securities: Unrealized holding gains (losses) arising during the period $ (11,511 ) $ (2,751 ) $ (8,760 ) $ 9,248 $ 3,535 $ 5,713 Less: Reclassification adjustment for (gains) losses realized in net income 2,807 683 2,124 (2,450 ) (938 ) (1,512 ) Other comprehensive income (loss) (8,704 ) (2,068 ) (6,636 ) 6,798 2,597 4,201 Reclassification adjustments to retained earnings (1) 5,830 2,811 3,019 — — — Change in accumulated other comprehensive income (loss) $ (2,874 ) $ 743 $ (3,617 ) $ 6,798 $ 2,597 $ 4,201 (1) This amount represents reclassifications to retained earnings associated with the disproportional income tax effects of the Tax Act on items within AOCI and unrealized losses in AOCI relating to Available for Sale equity security investments. See “—Note 2 (Significant Accounting Policies — Recently Adopted Accounting Pronouncements)” for more information. |
Reclassifications Adjustment for Gains (Losses) Out of Accumulated Other Comprehensive Income | The following table provides the reclassifications adjustment for gains (losses) out of accumulated other comprehensive income for the periods presented (in thousands): Amount Reclassified from Accumulated Other Comprehensive Income (Loss) Details about Accumulated Other Comprehensive Three Months Ended September 30, Nine Months Ended September 30, Affected Line Item in the Statement Income (Loss) Components 2018 2017 2018 2017 Where Net Income is Presented Unrealized gains (losses) on available-for-sale debt securities $ (10 ) $ 803 $ (2,807 ) $ 2,450 Net realized gains (losses) sale of securities 2 (308 ) 683 (938 ) Income taxes Total reclassification for the period $ (8 ) $ 495 $ (2,124 ) $ 1,512 Net of tax |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
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 measured at fair value on a recurring basis as of the dates presented (in thousands): Fair Value Measurements September 30, 2018 Level 1 Level 2 Level 3 Total Available-For-Sale Debt Securities: Fixed Maturities: U.S. government obligations and agencies $ — $ 65,998 $ — $ 65,998 Corporate bonds — 409,967 — 409,967 Mortgage-backed and asset-backed securities — 269,228 — 269,228 Municipal bonds — 3,278 — 3,278 Redeemable preferred stock — 11,937 — 11,937 Equity Securities: Common stock 20,575 — — 20,575 Mutual funds 48,533 — — 48,533 Total assets accounted for at fair value $ 69,108 $ 760,408 $ — $ 829,516 Fair Value Measurements December 31, 2017 Level 1 Level 2 Level 3 Total Available-For-Sale Debt Securities: Fixed Maturities: U.S. government obligations and agencies $ — $ 59,604 $ — $ 59,604 Corporate bonds — 227,504 — 227,504 Mortgage-backed and asset-backed securities — 219,452 — 219,452 Municipal bonds — 120,295 — 120,295 Redeemable preferred stock — 12,479 — 12,479 Equity Securities: Common stock 18,811 — — 18,811 Mutual funds 43,404 — — 43,404 Available-for-sale short-term investments — 10,000 — 10,000 Total assets accounted for at fair value $ 62,215 $ 649,334 $ — $ 711,549 |
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 not carried at fair value as of the dates presented (in thousands): September 30, 2018 December 31, 2017 (Level 3) (Level 3) Estimated Estimated Carrying Value Carrying Value Liabilities (debt): Surplus note $ 11,765 $ 10,501 $ 12,868 $ 11,630 |
Nature of Operations and Basi_3
Nature of Operations and Basis of Presentation - Additional Information (Detail) | Sep. 30, 2018State |
Accounting Policies [Abstract] | |
Number of states | 17 |
Significant Accounting Polici_2
Significant Accounting Policies - Additional Information (Detail) $ in Millions | Sep. 30, 2018USD ($) |
ASU 2016-01 [Member] | |
Schedule Of Significant Accounting Policies [Line Items] | |
Reclassification from accumulated other comprehensive income to retained earnings | $ 3.6 |
ASU 2018-02 [Member] | |
Schedule Of Significant Accounting Policies [Line Items] | |
Reclassification from accumulated other comprehensive income to retained earnings | $ 0.6 |
Investments - Cost or Amortized
Investments - Cost or Amortized Cost and Fair Value of Debt and Short-term Investment Securities Available for Sale (Detail) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Schedule Of Available For Sale Securities [Line Items] | ||
Debt Securities, Cost or Amortized Cost | $ 773,493 | |
Available-for-sale debt securities | 760,408 | $ 639,334 |
Total Cost or Amortized Cost | 773,493 | 653,715 |
Total Gross Unrealized Gains | 776 | 1,579 |
Total Gross Unrealized Losses | (13,861) | (5,960) |
Total Fair Value | 760,408 | 649,334 |
Short-term investments, Cost or Amortized Cost | 10,000 | |
Short-term investments, Fair Value | 10,000 | |
U.S. Government Obligations and Agencies [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Debt Securities, Cost or Amortized Cost | 67,442 | 60,481 |
Debt Securities, Gross Unrealized Gains | 15 | |
Debt Securities, Gross Unrealized Losses | (1,459) | (877) |
Available-for-sale debt securities | 65,998 | 59,604 |
Corporate Bonds [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Debt Securities, Cost or Amortized Cost | 415,600 | 228,336 |
Debt Securities, Gross Unrealized Gains | 532 | 476 |
Debt Securities, Gross Unrealized Losses | (6,165) | (1,308) |
Available-for-sale debt securities | 409,967 | 227,504 |
Mortgage-Backed and Asset-Backed Securities [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Debt Securities, Cost or Amortized Cost | 275,128 | 221,956 |
Debt Securities, Gross Unrealized Gains | 23 | 19 |
Debt Securities, Gross Unrealized Losses | (5,923) | (2,523) |
Available-for-sale debt securities | 269,228 | 219,452 |
Municipal Bonds [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Debt Securities, Cost or Amortized Cost | 3,401 | 120,883 |
Debt Securities, Gross Unrealized Gains | 599 | |
Debt Securities, Gross Unrealized Losses | (123) | (1,187) |
Available-for-sale debt securities | 3,278 | 120,295 |
Redeemable Preferred Stock [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Debt Securities, Cost or Amortized Cost | 11,922 | 12,059 |
Debt Securities, Gross Unrealized Gains | 206 | 485 |
Debt Securities, Gross Unrealized Losses | (191) | (65) |
Available-for-sale debt securities | $ 11,937 | $ 12,479 |
Investments - Schedule of Credi
Investments - Schedule of Credit Quality of Available-for-sale Debt Securities With Contractual Maturities (Detail) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Schedule Of Available For Sale Securities [Line Items] | ||
Fair Value | $ 760,408 | $ 649,334 |
Percentage of Total Fair Value | 100.00% | 100.00% |
Comparable Ratings, AAA Rating [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fair Value | $ 344,801 | $ 317,313 |
Percentage of Total Fair Value | 45.30% | 48.90% |
Comparable Ratings, AA Rating [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fair Value | $ 92,411 | $ 129,573 |
Percentage of Total Fair Value | 12.20% | 20.00% |
Comparable Ratings, A Rating [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fair Value | $ 216,074 | $ 146,749 |
Percentage of Total Fair Value | 28.40% | 22.60% |
Comparable Ratings, BBB Rating [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fair Value | $ 103,427 | $ 51,020 |
Percentage of Total Fair Value | 13.60% | 7.80% |
Comparable Ratings, BB+ and Below Rating [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fair Value | $ 117 | $ 1,569 |
Percentage of Total Fair Value | 0.00% | 0.20% |
Comparable Ratings, No Rating Available [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fair Value | $ 3,578 | $ 3,110 |
Percentage of Total Fair Value | 0.50% | 0.50% |
Investments - Schedule of Amort
Investments - Schedule of Amortized Cost and Fair Value on Mortgage-Backed and Asset-Backed Securities (Detail) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Schedule Of Available For Sale Securities [Line Items] | ||
Cost or Amortized Cost | $ 773,493 | |
Available-for-sale debt securities | 760,408 | $ 639,334 |
Mortgage-backed securities [Member] | Agency [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Cost or Amortized Cost | 152,068 | 118,014 |
Available-for-sale debt securities | 148,472 | 116,014 |
Mortgage-backed securities [Member] | Non Agency [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Cost or Amortized Cost | 44,509 | 17,676 |
Available-for-sale debt securities | 44,005 | 17,488 |
Asset-backed securities [Member] | Auto Loan Receivables [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Cost or Amortized Cost | 28,983 | 35,105 |
Available-for-sale debt securities | 28,649 | 34,962 |
Asset-backed securities [Member] | Credit Card Receivables [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Cost or Amortized Cost | 23,836 | 38,844 |
Available-for-sale debt securities | 23,665 | 38,719 |
Asset-backed securities [Member] | Other Receivables [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Cost or Amortized Cost | 25,732 | 12,317 |
Available-for-sale debt securities | 24,437 | 12,269 |
Mortgage-Backed and Asset-Backed Securities [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Cost or Amortized Cost | 275,128 | 221,956 |
Available-for-sale debt securities | $ 269,228 | $ 219,452 |
Investments - Summarized Fair V
Investments - Summarized Fair Value and Gross Unrealized Losses on Available-for-sale Debt Securities (Detail) $ in Thousands | Sep. 30, 2018USD ($)Security | Dec. 31, 2017USD ($)Security |
Schedule Of Available For Sale Securities [Line Items] | ||
Less than 12 months, Number of issues | Security | 608 | 306 |
Less than 12 months, Fair value | $ 476,031 | $ 345,882 |
Less than 12 months, Unrealized losses | $ (6,832) | $ (2,359) |
12 months or longer, Number of issues | Security | 176 | 115 |
12 months or longer, Fair value | $ 201,926 | $ 172,524 |
12 months or longer, Unrealized losses | $ (7,029) | $ (3,601) |
U.S. Government Obligations and Agencies [Member] | Debt Securities [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Less than 12 months, Number of issues | Security | 5 | 7 |
Less than 12 months, Fair value | $ 15,734 | $ 35,464 |
Less than 12 months, Unrealized losses | $ (313) | $ (301) |
12 months or longer, Number of issues | Security | 11 | 9 |
12 months or longer, Fair value | $ 40,389 | $ 24,140 |
12 months or longer, Unrealized losses | $ (1,146) | $ (576) |
Corporate Bonds [Member] | Debt Securities [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Less than 12 months, Number of issues | Security | 413 | 159 |
Less than 12 months, Fair value | $ 316,750 | $ 142,208 |
Less than 12 months, Unrealized losses | $ (4,599) | $ (792) |
12 months or longer, Number of issues | Security | 66 | 39 |
12 months or longer, Fair value | $ 51,245 | $ 29,796 |
12 months or longer, Unrealized losses | $ (1,566) | $ (516) |
Mortgage-Backed and Asset-Backed Securities [Member] | Debt Securities [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Less than 12 months, Number of issues | Security | 86 | 83 |
Less than 12 months, Fair value | $ 135,530 | $ 137,481 |
Less than 12 months, Unrealized losses | $ (1,643) | $ (955) |
12 months or longer, Number of issues | Security | 98 | 37 |
12 months or longer, Fair value | $ 109,884 | $ 70,218 |
12 months or longer, Unrealized losses | $ (4,280) | $ (1,568) |
Municipal Bonds [Member] | Debt Securities [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Less than 12 months, Number of issues | Security | 6 | 36 |
Less than 12 months, Fair value | $ 3,278 | $ 28,265 |
Less than 12 months, Unrealized losses | $ (123) | $ (246) |
12 months or longer, Number of issues | Security | 30 | |
12 months or longer, Fair value | $ 48,370 | |
12 months or longer, Unrealized losses | $ (941) | |
Redeemable Preferred Stock [Member] | Debt Securities [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Less than 12 months, Number of issues | Security | 98 | 21 |
Less than 12 months, Fair value | $ 4,739 | $ 2,464 |
Less than 12 months, Unrealized losses | $ (154) | $ (65) |
12 months or longer, Number of issues | Security | 1 | |
12 months or longer, Fair value | $ 408 | |
12 months or longer, Unrealized losses | $ (37) |
Investments - Amortized Cost an
Investments - Amortized Cost and Fair Value of Investments With Contractual Maturities (Detail) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Schedule Of Available For Sale Securities [Line Items] | ||
Fixed Maturities Securities Available for Sale, Due in one year or less, Amortized cost | $ 65,340 | |
Fixed Maturities Securities Available for Sale, Due after one year through five years, Amortized cost | 246,639 | |
Fixed Maturities Securities Available for Sale, Due after five years through ten years, Amortized cost | 158,771 | |
Fixed Maturities Securities Available for Sale, Due after ten years, Amortized cost | 15,693 | |
Fixed Maturities Securities Available for Sale, Perpetual Maturity, Amortized Cost | 11,922 | |
Debt Securities, Cost or Amortized Cost | 773,493 | |
Fixed Maturities Securities Available for Sale, Due in one year or less, Fair Value | 65,054 | |
Fixed Maturities Securities Available for Sale, Due after one year through five years, Fair Value | 242,313 | |
Fixed Maturities Securities Available for Sale, Due after five years through ten years, Fair Value | 156,385 | |
Fixed Maturities Securities Available for Sale, Due after ten years, Fair Value | 15,491 | |
Fixed Maturities Securities Available for Sale, Perpetual Maturity, Fair Value | 11,937 | |
Fixed Maturities Securities Available for Sale, Fair Value, Total | 760,408 | $ 649,334 |
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 | 275,128 | |
Fixed Maturities Securities Available for Sale, Mortgage-backed Securities, Fair Value | $ 269,228 |
Investments - Summary of Availa
Investments - Summary of Available-for-Sale Debt Securities and Equity Securities (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Schedule Of Available For Sale Securities [Line Items] | ||||
Proceeds from sales and maturities (fair value) | $ 8,285 | $ 75,027 | ||
Available-for-Sale Debt Securities [Member] | ||||
Schedule Of Available For Sale Securities [Line Items] | ||||
Proceeds from sales and maturities (fair value) | $ 32,287 | $ 49,762 | 225,989 | 100,413 |
Gross realized gains on sale of securities | 1 | 302 | 318 | 330 |
Gross realized losses on sale of securities | (11) | (19) | (3,125) | (59) |
Equity Securities [Member] | ||||
Schedule Of Available For Sale Securities [Line Items] | ||||
Proceeds from sales and maturities (fair value) | 4,158 | 18,056 | 8,285 | 75,027 |
Gross realized gains on sale of securities | $ 413 | 547 | $ 714 | 2,332 |
Gross realized losses on sale of securities | $ (27) | $ (153) |
Investments - Investment Income
Investments - Investment Income (Expense) Comprised Primarily of Interest and Dividends (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Net Investment Income [Line Items] | ||||
Total investment income | $ 7,423 | $ 3,644 | $ 19,316 | $ 10,634 |
Less: Investment expenses | (781) | (559) | (2,103) | (1,622) |
Net investment (expense) income | 6,642 | 3,085 | 17,213 | 9,012 |
Available-for-Sale Debt Securities [Member] | ||||
Net Investment Income [Line Items] | ||||
Investment income | 4,595 | 2,977 | 12,390 | 8,893 |
Equity Securities [Member] | ||||
Net Investment Income [Line Items] | ||||
Investment income | 722 | 348 | 2,016 | 1,068 |
Available-for-sale Short-term Investments [Member] | ||||
Net Investment Income [Line Items] | ||||
Investment income | 145 | 22 | ||
Other [Member] | ||||
Net Investment Income [Line Items] | ||||
Investment income | $ 2,106 | $ 319 | $ 4,765 | $ 651 |
Investments - Summary of Detail
Investments - Summary of Details on Realized and Unrealized Gains and Losses Related to Equity Securities (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Investments Equity Securities [Abstract] | ||||
Net gains and (losses) recognized during the period on equity securities | $ (2,060) | $ 520 | $ (8,389) | $ 2,179 |
Less: Net (gains) and losses recognized during the period on equity securities sold during the period | (413) | $ (520) | (714) | $ (2,179) |
Unrealized gains and (losses) recognized during the reporting period on equity securities still held at the reporting period | $ (2,473) | $ (9,103) |
Investments - Schedule of Real
Investments - Schedule of Real Estate Investment (Detail) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Real Estate [Line Items] | ||
Investment real estate, net | $ 23,720 | $ 18,474 |
Income Producing [Member] | ||
Real Estate [Line Items] | ||
Investment real estate | 14,619 | 6,918 |
Less: Accumulated depreciation | (767) | (460) |
Investment real estate, net | 13,852 | 6,458 |
Non-Income Producing [Member] | ||
Real Estate [Line Items] | ||
Properties under development | $ 9,868 | $ 12,016 |
Investments - Schedule of Rea_2
Investments - Schedule of Real Estate Investment (Parenthetical) (Detail) $ in Millions | 9 Months Ended |
Sep. 30, 2018USD ($) | |
Real Estate Investments [Abstract] | |
Amount tranferred from properties under development to investment real estate | $ 7.4 |
Investments - Schedule of Depre
Investments - Schedule of Depreciation Expense Related to Investment Real Estate (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Real Estate Investment [Member] | ||||
Real Estate [Line Items] | ||||
Depreciation expense on investment real estate | $ 103 | $ 45 | $ 307 | $ 134 |
Reinsurance - Additional Inform
Reinsurance - Additional Information (Detail) - USD ($) | 9 Months Ended | |
Sep. 30, 2018 | Dec. 31, 2017 | |
Effects of Reinsurance [Line Items] | ||
Reinsurance unsecured amounts due from reinsurers | $ 0 | $ 180,172,000 |
Stockholders' Equity, Total [Member] | Amounts Due From Reinsurers [Member] | ||
Effects of Reinsurance [Line Items] | ||
Unsecured amounts due from reinsurers exceeding a fixed percentage of stockholders equity | 3.00% |
Reinsurance - Current Ratings f
Reinsurance - Current Ratings from Rating Agencies and Unsecured Net Amounts Due from Insurance Entities' Reinsurers Whose Aggregate Balance Exceeded 3% of Stockholders' Equity (Detail) - USD ($) | Sep. 30, 2018 | Dec. 31, 2017 |
Ceded Credit Risk [Line Items] | ||
Reinsurance unsecured amounts due from reinsurers total | $ 0 | $ 180,172,000 |
Allianz Risk Transfer [Member] | AM Best Company A+ [Member] | Standard and Poor's AA [Member] | Moody's Investors Service Aa3 [Member] | ||
Ceded Credit Risk [Line Items] | ||
Reinsurance unsecured amounts due from reinsurers total | 105,573,000 | |
Florida Hurricane Catastrophe Fund [Member] | ||
Ceded Credit Risk [Line Items] | ||
Reinsurance unsecured amounts due from reinsurers total | 52,054,000 | |
Renaissance Reinsurance Ltd [Member] | AM Best Company A+ [Member] | Standard and Poor's A+ [Member] | Moody's Investors Service A1 [Member] | ||
Ceded Credit Risk [Line Items] | ||
Reinsurance unsecured amounts due from reinsurers total | $ 22,545,000 |
Reinsurance - Insurance Entitie
Reinsurance - Insurance Entities' Reinsurance Arrangements (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Reinsurance Disclosures [Abstract] | ||||
Direct premiums written | $ 309,176 | $ 274,744 | $ 921,941 | $ 816,350 |
Ceded premiums written | (17,256) | (7,303) | (356,507) | (318,827) |
Net premiums written | 291,920 | 267,441 | 565,434 | 497,523 |
Direct premiums earned | 288,404 | 254,809 | 824,692 | 735,807 |
Ceded premiums earned | (99,466) | (80,292) | (260,905) | (230,722) |
Premiums earned, net | 188,938 | 174,517 | 563,787 | 505,085 |
Direct Losses and Loss Adjustment Expenses | 270,158 | 531,268 | 593,419 | 687,707 |
Ceded Losses and Loss Adjustment Expenses | (184,211) | (414,893) | (341,704) | (420,578) |
Net Losses and Loss Adjustment Expenses | $ 85,947 | $ 116,375 | $ 251,715 | $ 267,129 |
Reinsurance - Prepaid Reinsuran
Reinsurance - Prepaid Reinsurance Premiums and Reinsurance Recoverable and Receivable (Detail) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Reinsurance Disclosures [Abstract] | ||
Prepaid reinsurance premiums | $ 228,408 | $ 132,806 |
Reinsurance recoverable on paid losses and LAE | 27,037 | |
Reinsurance recoverable on unpaid losses and LAE | 131,566 | 182,405 |
Reinsurance receivable, net | 961 | |
Reinsurance recoverable and receivable | $ 159,564 | $ 182,405 |
Insurance Operations - Beginnin
Insurance Operations - Beginning and Ending Balances and Changes in DPAC (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Insurance [Abstract] | ||||
DPAC, beginning of period | $ 88,756 | $ 73,591 | $ 73,059 | $ 64,912 |
Capitalized Costs | 44,389 | 36,999 | 136,758 | 110,653 |
Amortization of DPAC | (42,502) | (34,656) | (119,174) | (99,631) |
DPAC, end of period | $ 90,643 | $ 75,934 | $ 90,643 | $ 75,934 |
Insurance Operations - Addition
Insurance Operations - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2018USD ($) | |
UPCIC [Member] | |
Statutory Accounting Practices [Line Items] | |
Ordinary dividend capacity accordance with Florida Insurance Code | $ 36,200,000 |
Dividend paid to immediate parent company | 0 |
APPCIC [Member] | |
Statutory Accounting Practices [Line Items] | |
Dividend paid to immediate parent company | $ 0 |
UPCIC and APPCIC [Member] | |
Statutory Accounting Practices [Line Items] | |
Minimum capitalization rate | 10.00% |
Minimum capital required | greater of ten percent of the insurer’s total liabilities but not less than $10.0 million. |
UPCIC and APPCIC [Member] | Minimum [Member] | |
Statutory Accounting Practices [Line Items] | |
Minimum capitalization amount | $ 10,000,000 |
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 | Sep. 30, 2018 | Dec. 31, 2017 |
UPCIC [Member] | ||
Statutory Accounting Practices [Line Items] | ||
Ten percent of total liabilities | $ 88,901 | $ 72,633 |
Statutory capital and surplus | 343,302 | 307,686 |
APPCIC [Member] | ||
Statutory Accounting Practices [Line Items] | ||
Ten percent of total liabilities | 538 | 572 |
Statutory capital and surplus | $ 16,045 | $ 16,633 |
Insurance Operations - Summary
Insurance Operations - Summary of Combined Net Income (Loss) for UPCIC and APPCIC (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Insurance [Abstract] | ||||
Combined net income (loss) | $ 5,468 | $ (9,662) | $ 49,190 | $ 33,532 |
Insurance Operations - Assets H
Insurance Operations - Assets Held by Insurance Regulators (Detail) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
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 | $ 3,914 | $ 3,910 |
Liability for Unpaid Losses a_3
Liability for Unpaid Losses and Loss Adjustment Expenses - Change in Liability for Unpaid Losses and LAE (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Insurance [Abstract] | ||||
Balance at beginning of period | $ 151,916 | $ 22,645 | $ 248,425 | $ 58,494 |
Less: Reinsurance recoverable (net of payable offsets) | (96,733) | (1,393) | (182,405) | (106) |
Net balance at beginning of period | 55,183 | 21,252 | 66,020 | 58,388 |
Incurred (recovered) related to current year | 85,986 | 116,262 | 249,488 | 265,811 |
Incurred (recovered) related to prior years | (39) | 113 | 2,227 | 1,318 |
Total incurred | 85,947 | 116,375 | 251,715 | 267,129 |
Paid related to Current year | 72,034 | 93,969 | 140,013 | 179,000 |
Paid related to Prior years | 38,372 | 15,912 | 146,998 | 118,771 |
Total paid | 110,406 | 109,881 | 287,011 | 297,771 |
Net balance at end of period | 30,724 | 27,746 | 30,724 | 27,746 |
Plus: Reinsurance recoverable (net of payable offsets) | 127,943 | 412,697 | 127,943 | 412,697 |
Balance at end of period | $ 158,667 | $ 440,443 | $ 158,667 | $ 440,443 |
Liability for Unpaid Losses a_4
Liability for Unpaid Losses and Loss Adjustment Expenses - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Insurance [Abstract] | |||||
Estimated of ultimate losses on storm | $ 754,000 | $ 754,000 | $ 446,700 | ||
Prior year adverse development direct losses | 311,700 | ||||
Net losses after benefit of reinsurance recoveries from prior year adverse development losses | $ (39) | $ 113 | $ 2,227 | $ 1,318 | |
Loss reserve development on direct basis | 6,900 | ||||
Loss reserve development on net basis | $ 1,300 |
Long-Term Debt - Schedule of Lo
Long-Term Debt - Schedule of Long-Term Debt (Detail) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Surplus Note [Member] | ||
Debt Instrument [Line Items] | ||
Notes payable | $ 11,765 | $ 12,868 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Detail) - Surplus Note [Member] $ in Millions | Dec. 31, 2006USD ($) |
Debt Instrument [Line Items] | |
Unsecured term loan agreement | $ 25 |
Note term | 20 years |
Stockholders' Equity - Activity
Stockholders' Equity - Activity Relating to Common Shares (Detail) shares in Thousands | 9 Months Ended | |
Sep. 30, 2018shares | ||
Equity [Abstract] | ||
Issued shares, beginning balance | 45,778 | |
Treasury shares, beginning balance | (11,043) | |
Outstanding shares, beginning balance | 34,735 | |
Shares repurchased | (342) | |
Vesting of performance share units | 127 | |
Stock option exercises | 1,325 | |
Restricted stock grants | 50 | |
Shares acquired through cashless exercise | (962) | [1] |
Issued shares, shares cancelled | (962) | |
Treasury shares, shares cancelled | 962 | |
Issued shares, ending balance | 46,318 | |
Treasury shares, ending balance | (11,385) | |
Outstanding shares, ending balance | 34,933 | |
[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 performance share units vested. These shares have been cancelled by the Company. |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - USD ($) | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Equity [Line Items] | ||
Treasury shares acquired | 342,000 | |
September 2017 Share Repurchase Program [Member] | ||
Equity [Line Items] | ||
Treasury shares acquired | 342,749 | |
Shares repurchased during period | $ 11,100,000 | |
Maximum [Member] | September 2017 Share Repurchase Program [Member] | ||
Equity [Line Items] | ||
Amount of shares authorized to repurchase | $ 20,000,000 |
Stockholders' Equity - Summary
Stockholders' Equity - Summary of Dividends Declared and Paid (Detail) - $ / shares | May 29, 2018 | Apr. 12, 2018 | Jan. 22, 2018 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 |
Dividends Payable [Line Items] | |||||||
Cash dividend declared per common share | $ 0.16 | $ 0.14 | $ 0.44 | $ 0.42 | |||
First Quarter [Member] | |||||||
Dividends Payable [Line Items] | |||||||
Dividend Declared Date | Jan. 22, 2018 | ||||||
Shareholders Record Date | Feb. 28, 2018 | ||||||
Dividend Payable Date | Mar. 12, 2018 | ||||||
Cash dividend declared per common share | $ 0.14 | ||||||
Second Quarter [Member] | |||||||
Dividends Payable [Line Items] | |||||||
Dividend Declared Date | Apr. 12, 2018 | ||||||
Shareholders Record Date | Apr. 27, 2018 | ||||||
Dividend Payable Date | May 4, 2018 | ||||||
Cash dividend declared per common share | $ 0.14 | ||||||
Third Quarter [Member] | |||||||
Dividends Payable [Line Items] | |||||||
Dividend Declared Date | May 29, 2018 | ||||||
Shareholders Record Date | Jul. 2, 2018 | ||||||
Dividend Payable Date | Jul. 16, 2018 | ||||||
Cash dividend declared per common share | $ 0.16 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2018 | |
Income Taxes [Line Items] | |||||
Income tax expense (benefit) | $ 13,787,000 | $ 6,635,000 | $ 40,595,000 | $ 41,354,000 | |
Effective tax rate | 26.90% | 40.00% | 24.70% | 37.00% | |
Excess tax expense (benefits) from discrete items | $ 200,000 | $ (2,000,000) | |||
Unfavorable effect from income tax accrual adjustment relating to return to provision true ups | $ 900,000 | $ 200,000 | $ 900,000 | ||
Effect of reporting discrete items during the period | 0.40% | 1.30% | |||
Excess tax benefits from stock-based compensation awards | $ 700,000 | $ 3,300,000 | $ 800,000 | ||
Income tax expense credit | $ 1,200,000 | ||||
Other miscellaneous items | $ 400,000 | ||||
Statutory Effective Tax Rate [Member] | |||||
Income Taxes [Line Items] | |||||
State income tax rate, net of federal benefit | 3.70% | ||||
U.S. federal statutory rate | 21.00% | ||||
Internal Revenue Service (IRS) [Member] | Tax Year 2015 [Member] | |||||
Income Taxes [Line Items] | |||||
Income tax examination, adjustment from settlement with taxing authority | $ 0 | $ 0 | |||
Forecast [Member] | |||||
Income Taxes [Line Items] | |||||
Effective tax rate | 26.00% |
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 | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | ||
Numerator for EPS: | |||||
Net income | $ 37,380 | $ 9,964 | $ 123,519 | $ 70,539 | |
Less: Preferred stock dividends | (3) | (3) | (8) | (8) | |
Income available to common stockholders | $ 37,377 | $ 9,961 | $ 123,511 | $ 70,531 | |
Denominator for EPS: | |||||
Weighted average common shares outstanding | 34,861 | 34,686 | 34,870 | 34,927 | |
Plus: Assumed conversion of share-based compensation | [1] | 1,033 | 904 | 859 | 965 |
Assumed conversion of preferred stock | 25 | 25 | 25 | 25 | |
Weighted average diluted common shares outstanding | 35,919 | 35,615 | 35,754 | 35,917 | |
Basic earnings per common share | $ 1.07 | $ 0.29 | $ 3.54 | $ 2.02 | |
Diluted earnings per common share | $ 1.04 | $ 0.28 | $ 3.45 | $ 1.96 | |
[1] | Represents the dilutive effect of unvested restricted stock, unvested performance share units and unexercised stock options. |
Other Comprehensive Income (L_3
Other Comprehensive Income (Loss) - Components of Other Comprehensive Income (loss) Pre-Tax and After-Tax (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Equity [Abstract] | ||||
Unrealized holding gains (losses) arising during the period, Pre-tax | $ (989) | $ 1,207 | $ (11,511) | $ 9,248 |
Less: Reclassification adjustment for (gains) losses realized in net income, Pre-tax | 10 | (803) | 2,807 | (2,450) |
Other comprehensive income (loss), Pre-tax | (979) | 404 | (8,704) | 6,798 |
Reclassification adjustments to retained earnings, Pre-tax | 5,830 | |||
Change in accumulated other comprehensive income (loss), Pre-tax | (979) | 404 | (2,874) | 6,798 |
Unrealized holding gains (losses) arising during the period, Tax | (244) | 461 | (2,751) | 3,535 |
Less: Reclassification adjustment for (gains) losses realized in net income, Tax | 2 | (308) | 683 | (938) |
Other comprehensive income (loss), Tax | (242) | 153 | (2,068) | 2,597 |
Reclassification adjustments to retained earnings, Tax | 2,811 | |||
Change in accumulated other comprehensive income (loss), Tax | (242) | 153 | 743 | 2,597 |
Unrealized holding gains (losses) arising during the period, After-tax | (745) | 746 | (8,760) | 5,713 |
Less: Reclassification adjustment for (gains) losses realized in net income, After-tax | 8 | (495) | 2,124 | (1,512) |
Other comprehensive income (loss), After-tax | (737) | 251 | (6,636) | 4,201 |
Reclassification adjustments to retained earnings, After-tax | 3,019 | |||
Change in accumulated other comprehensive income (loss), After-tax | $ (737) | $ 251 | $ (3,617) | $ 4,201 |
Other Comprehensive Income (L_4
Other Comprehensive Income (Loss) - Reclassifications Adjustment for Gains (Losses) Out of Accumulated Other Comprehensive Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net realized gains (losses) on sale of securities | $ 403 | $ 803 | $ (2,093) | $ 2,450 |
Income taxes | (13,787) | (6,635) | (40,595) | (41,354) |
NET INCOME | 37,380 | 9,964 | 123,519 | 70,539 |
Accumulated Net Unrealized Investment Gain (Loss) [Member] | Amount Reclassified from Accumulated Other Comprehensive Income (Loss) [Member] | Debt Securities [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net realized gains (losses) on sale of securities | (10) | 803 | (2,807) | 2,450 |
Income taxes | 2 | (308) | 683 | (938) |
NET INCOME | $ (8) | $ 495 | $ (2,124) | $ 1,512 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) | Sep. 30, 2018 | Dec. 31, 2017 |
Reinsurance Retention Policy [Line Items] | ||
Reinsurance payable, net | $ 261,133,000 | $ 110,381,000 |
Period from June 1, 2019 to May 31, 2020 [Member] | ||
Reinsurance Retention Policy [Line Items] | ||
Reinsurance payable, net | 82,300 | |
Period from June 1, 2020 to May 31, 2021 [Member] | ||
Reinsurance Retention Policy [Line Items] | ||
Reinsurance payable, net | $ 33,900 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets Measured for at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | $ 760,408 | $ 639,334 |
Equity securities | 69,108 | 62,215 |
Available-for-sale short-term investments | 10,000 | |
U.S. Government Obligations and Agencies [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 65,998 | 59,604 |
Corporate Bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 409,967 | 227,504 |
Mortgage-Backed and Asset-Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 269,228 | 219,452 |
Municipal Bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 3,278 | 120,295 |
Redeemable Preferred Stock [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 11,937 | 12,479 |
Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 829,516 | 711,549 |
Fair Value, Measurements, Recurring [Member] | U.S. Government Obligations and Agencies [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 65,998 | 59,604 |
Fair Value, Measurements, Recurring [Member] | Corporate Bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 409,967 | 227,504 |
Fair Value, Measurements, Recurring [Member] | Mortgage-Backed and Asset-Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 269,228 | 219,452 |
Fair Value, Measurements, Recurring [Member] | Municipal Bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 3,278 | 120,295 |
Fair Value, Measurements, Recurring [Member] | Redeemable Preferred Stock [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 11,937 | 12,479 |
Fair Value, Measurements, Recurring [Member] | Common Stock [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 20,575 | 18,811 |
Fair Value, Measurements, Recurring [Member] | Mutual Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 48,533 | 43,404 |
Fair Value, Measurements, Recurring [Member] | Available For Sale [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale short-term investments | 10,000 | |
Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 69,108 | 62,215 |
Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Common Stock [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 20,575 | 18,811 |
Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Mutual Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 48,533 | 43,404 |
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 760,408 | 649,334 |
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | U.S. Government Obligations and Agencies [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 65,998 | 59,604 |
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Corporate Bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 409,967 | 227,504 |
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Mortgage-Backed and Asset-Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 269,228 | 219,452 |
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Municipal Bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | 3,278 | 120,295 |
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Redeemable Preferred Stock [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities | $ 11,937 | 12,479 |
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Available For Sale [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale short-term investments | $ 10,000 |
Fair Value Measurements - Summa
Fair Value Measurements - Summarizes Carrying Value and Estimated Fair Values of Financial Instruments not Carried at Fair Value (Detail) - Surplus Note [Member] - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Carrying Value | $ 11,765 | $ 12,868 |
Level 3 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Estimated Fair Value | $ 10,501 | $ 11,630 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - USD ($) | Oct. 10, 2018 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 |
Subsequent Event [Line Items] | |||||
Direct Losses and Loss Adjustment Expenses | $ 270,158,000 | $ 531,268,000 | $ 593,419,000 | $ 687,707,000 | |
Losses and loss adjustment expenses | $ 85,947,000 | $ 116,375,000 | $ 251,715,000 | $ 267,129,000 | |
Hurricane Michael [Member] | Subsequent Event [Member] | |||||
Subsequent Event [Line Items] | |||||
Losses and loss adjustment expenses | $ 35,000,000 | ||||
Hurricane Michael [Member] | Minimum [Member] | Subsequent Event [Member] | |||||
Subsequent Event [Line Items] | |||||
Direct Losses and Loss Adjustment Expenses | 300,000,000 | ||||
Hurricane Michael [Member] | Maximum [Member] | Subsequent Event [Member] | |||||
Subsequent Event [Line Items] | |||||
Direct Losses and Loss Adjustment Expenses | $ 350,000,000 |