Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended | ||
Jun. 30, 2014 | Aug. 01, 2014 | Aug. 01, 2014 | |
Class A (voting) [Member] | Class B (non-voting) [Member] | ||
Document and Entity Information [Abstract] | ' | ' | ' |
Entity Registrant Name | 'BALDWIN & LYONS INC | ' | ' |
Entity Central Index Key | '0000009346 | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Filer Category | 'Accelerated Filer | ' | ' |
Entity Information [Line Items] | ' | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 2,623,109 | 12,347,771 |
Document Fiscal Year Focus | '2014 | ' | ' |
Document Fiscal Period Focus | 'Q2 | ' | ' |
Document Type | '10-Q | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 30-Jun-14 | ' | ' |
Unaudited_Consolidated_Balance
Unaudited Consolidated Balance Sheets (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Investments: | ' | ' |
Fixed maturities | $429,460 | $431,550 |
Equity securities | 160,926 | 145,828 |
Limited partnerships | 78,892 | 68,988 |
Short-term | 3,162 | 4,891 |
Total Investments | 672,440 | 651,257 |
Cash and cash equivalents | 75,715 | 59,297 |
Accounts receivable | 105,115 | 100,830 |
Reinsurance recoverable | 208,737 | 195,568 |
Other assets | 61,515 | 62,204 |
Current federal income taxes | 69 | 3,114 |
Total Assets | 1,123,591 | 1,072,270 |
Liabilities and shareholders' equity | ' | ' |
Reserves for losses and loss expenses | 494,132 | 474,470 |
Reserves for unearned premiums | 36,561 | 36,693 |
Short-term borrowings | 20,000 | 10,000 |
Accounts payable and accrued expenses | 148,248 | 152,532 |
Deferred federal income taxes | 23,509 | 16,851 |
Total Liabilities | 722,450 | 690,546 |
Shareholders' equity: | ' | ' |
Additional paid-in capital | 51,634 | 50,594 |
Unrealized net gains on investments | 59,389 | 49,089 |
Foreign exchange adjustment | 1,271 | 1,401 |
Retained earnings | 288,208 | 280,003 |
Shareholders' equity | 401,141 | 381,724 |
Total liabilities and shareholders' equity | 1,123,591 | 1,072,270 |
Class A voting [Member] | ' | ' |
Shareholders' equity: | ' | ' |
Common stock | 112 | 112 |
Class B non-voting [Member] | ' | ' |
Shareholders' equity: | ' | ' |
Common stock | $527 | $525 |
Unaudited_Consolidated_Balance1
Unaudited Consolidated Balance Sheets (Parenthetical) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
Class A voting [Member] | ' | ' |
Shareholders' equity: | ' | ' |
Common stock, par value (in dollars per share) | $0 | $0 |
Common stock, shares authorized (in shares) | 3,000,000 | 3,000,000 |
Common stock, shares outstanding (in shares) | 2,623,109 | 2,623,109 |
Class B non-voting [Member] | ' | ' |
Shareholders' equity: | ' | ' |
Common stock, par value (in dollars per share) | $0 | $0 |
Common stock, shares authorized (in shares) | 20,000,000 | 20,000,000 |
Common stock, shares outstanding (in shares) | 12,347,771 | 12,304,191 |
Unaudited_Consolidated_Stateme
Unaudited Consolidated Statements of Operations (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Revenues | ' | ' | ' | ' |
Net premiums earned | $62,905 | $61,775 | $126,747 | $122,873 |
Net investment income | 2,090 | 1,985 | 4,383 | 4,395 |
Commissions and other income | 1,732 | 1,539 | 3,087 | 2,922 |
Net realized gains on investments, excluding impairment losses | 8,089 | 787 | 12,264 | 15,140 |
Total other-than-temporary impairment losses on investments | 0 | -68 | -105 | -74 |
Net realized gains on investments | 8,089 | 719 | 12,159 | 15,066 |
Total revenue | 74,816 | 66,018 | 146,376 | 145,256 |
Expenses | ' | ' | ' | ' |
Losses and loss expenses incurred | 40,282 | 38,343 | 79,571 | 72,876 |
Other operating expenses | 20,497 | 20,413 | 43,329 | 42,439 |
Total expenses | 60,779 | 58,756 | 122,900 | 115,315 |
Income before federal income taxes | 14,037 | 7,262 | 23,476 | 29,941 |
Federal income taxes | 4,697 | 2,355 | 7,775 | 10,091 |
Net income | $9,340 | $4,907 | $15,701 | $19,850 |
Per share data: | ' | ' | ' | ' |
Basic and diluted earnings (in dollars per share) | $0.62 | $0.33 | $1.05 | $1.33 |
Dividends paid to shareholders (in dollars per share) | $0.25 | $0.25 | $0.50 | $0.50 |
Reconciliation of shares outstanding: | ' | ' | ' | ' |
Average shares outstanding - basic (in shares) | 14,967 | 14,910 | 14,957 | 14,894 |
Dilutive effect of share equivalents (in shares) | 4 | 8 | 14 | 24 |
Average shares outstanding - diluted (in shares) | 14,971 | 14,918 | 14,971 | 14,918 |
Unaudited_Consolidated_Stateme1
Unaudited Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Unaudited Consolidated Statements of Comprehensive Income [Abstract] | ' | ' | ' | ' |
Net income | $9,340 | $4,907 | $15,701 | $19,850 |
Unrealized net gains (losses) on securities: | ' | ' | ' | ' |
Unrealized net gains (losses) arising during the period | 6,994 | -1,024 | 12,829 | 6,779 |
Less: reclassification adjustment for net gains (losses) included in net income | 1,877 | 1,296 | 2,529 | 8,208 |
Change in unrealized gains (losses) on investments | 5,117 | -2,320 | 10,300 | -1,429 |
Foreign currency translation adjustments | 371 | -294 | -130 | -481 |
Other comprehensive income (loss) | 5,488 | -2,614 | 10,170 | -1,910 |
Comprehensive income | $14,828 | $2,293 | $25,871 | $17,940 |
Unaudited_Consolidated_Stateme2
Unaudited Consolidated Statements of Cash Flows (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Unaudited Consolidated Statements of Cash Flows [Abstract] | ' | ' |
Net cash provided by operating activities | $13,609 | $10,862 |
Investing activities: | ' | ' |
Purchases of available-for-sale investments | -155,773 | -160,345 |
Purchases of limited partnership interests | -2,212 | 0 |
Proceeds from sales or maturities of available-for-sale investments | 164,534 | 219,268 |
Net sales (purchases) of short-term investments | 1,729 | -25 |
Other investing activities | -7,843 | -17,396 |
Net cash provided by investing activities | 435 | 41,502 |
Financing activities: | ' | ' |
Dividends paid to shareholders | -7,496 | -7,512 |
Drawings on line of credit | 10,000 | 0 |
Net cash provided by (used in) financing activities | 2,504 | -7,512 |
Effect of foreign exchange rates on cash and cash equivalents | -130 | -481 |
Increase in cash and cash equivalents | 16,418 | 44,371 |
Cash and cash equivalents at beginning of period | 59,297 | 71,549 |
Cash and cash equivalents at end of period | $75,715 | $115,920 |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2014 | |
Summary of Significant Accounting Policies [Abstract] | ' |
Summary of Significant Accounting Policies | ' |
(1) Summary of Significant Accounting Policies | |
Basis of Presentation: The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and do not include all of the information and notes required by U.S. generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for fair presentation have been included. Operating results for the interim periods are not necessarily indicative of the results that may be expected for the year ended December 31, 2014. Interim financial statements should be read in conjunction with the Company’s annual audited financial statements and other disclosures included in the Company’s most recent Form 10-K. | |
Investments: Carrying amounts for fixed maturity securities represent fair value and are based on quoted market prices, where available, or broker/dealer quotes for specific securities where quoted market prices are not available. Equity securities are carried at quoted market prices (fair value). The Company accounts for investments in limited partnerships using the equity method of accounting, which requires an investor in a limited partnership to record its proportionate share of the limited partnership’s net income. To the extent that the limited partnership investees include both realized and unrealized investment gains or losses in the determination of net income or loss, then the Company would also recognize, through its consolidated statements of operations, its proportionate share of the investee’s unrealized as well as realized investment gains or losses. | |
Other investments, if any, are carried at either fair value or cost, depending on the nature of the investment. Short-term investments are carried at cost which approximates their fair values. | |
Realized gains and losses on disposals of investments are determined by specific identification of the cost of investments sold and are included in income. All fixed maturity and equity securities are considered to be available for sale; the related unrealized net gains or losses (net of applicable tax effect) are reflected directly in shareholders’ equity. Included within available for sale fixed maturity securities are insurance-linked securities and convertible debt securities. The changes in fair values of insurance-linked securities and portions of the changes in fair values of convertible debt securities are reflected as a component of net realized gains (losses). | |
With respect to other–than-temporary impairment of investments, if a fixed maturity security is in an unrealized loss position and the Company has the intent to sell the fixed maturity security, or it is more likely than not that the Company will have to sell the fixed maturity security before recovery of its amortized cost basis, the decline in value is deemed to be other-than-temporary and is recorded to net realized losses on investments in the consolidated statements of operations. For impaired fixed maturity securities that the Company does not intend to sell or it is more likely than not that the Company will not have to sell such securities, but the Company expects that it will not fully recover the amortized cost basis, the credit component of the other-than-temporary impairment is recognized in net realized losses on investments in the consolidated statements of operations and the non-credit component of the other-than-temporary impairment is recognized directly in shareholders’ equity (accumulated other comprehensive income). | |
The credit component of an other-than-temporary impairment is determined by comparing the net present value of projected future cash flows with the amortized cost basis of the fixed maturity security. Furthermore, unrealized losses caused by non-credit related factors related to fixed maturity securities for which the Company expects to fully recover the amortized cost basis continue to be recognized in accumulated other comprehensive income. | |
The unrealized net gains or losses (net of applicable tax effect) related to equity securities are reflected directly in shareholders’ equity, unless a decline in value is determined to be other-than-temporary, in which case the loss is charged to income. In determining if and when a decline in market value below cost is other-than-temporary, an objective analysis is made of each individual security where current market value is less than cost. For any equity security where the unrealized loss exceeds 20% of original or adjusted cost, and where that decline has existed for a period of at least six months, the decline is treated as an other-than-temporary impairment, subject to an evaluation as to possible future recovery. Additionally, the Company takes into account any known subjective information in evaluating for impairment without consideration to the Company’s quantitative criteria defined above. |
Investments
Investments | 6 Months Ended | ||||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||||
Investments [Abstract] | ' | ||||||||||||||||||||||||
Investments | ' | ||||||||||||||||||||||||
(2) Investments: | |||||||||||||||||||||||||
The following is a summary of available-for-sale securities at June 30, 2014 and December 31, 2013: | |||||||||||||||||||||||||
Net | |||||||||||||||||||||||||
Cost or | Gross | Gross | Unrealized | ||||||||||||||||||||||
Fair | Amortized | Unrealized | Unrealized | Gains | |||||||||||||||||||||
Value | Cost | Gains | Losses | (Losses) | |||||||||||||||||||||
30-Jun-14 | |||||||||||||||||||||||||
Fixed maturities | |||||||||||||||||||||||||
U.S. government obligations | $ | 119,517 | $ | 119,356 | $ | 176 | $ | (15 | ) | $ | 161 | ||||||||||||||
Residential mortgage-backed securities | 7,935 | 7,574 | 424 | (63 | ) | 361 | |||||||||||||||||||
Commercial mortgage-backed securities | 26,618 | 25,878 | 815 | (75 | ) | 740 | |||||||||||||||||||
States and municipal obligations | 114,212 | 113,481 | 861 | (130 | ) | 731 | |||||||||||||||||||
Corporate securities | 135,435 | 134,469 | 3,426 | (2,460 | ) | 966 | |||||||||||||||||||
Foreign government obligations | 25,743 | 25,420 | 471 | (148 | ) | 323 | |||||||||||||||||||
Total fixed maturities | 429,460 | 426,178 | 6,173 | (2,891 | ) | 3,282 | |||||||||||||||||||
Equity securities: | |||||||||||||||||||||||||
Financial institutions | 20,456 | 8,565 | 11,907 | (16 | ) | 11,891 | |||||||||||||||||||
Industrial & miscellaneous | 140,470 | 64,275 | 76,416 | (221 | ) | 76,195 | |||||||||||||||||||
Total equity securities | 160,926 | 72,840 | 88,323 | (237 | ) | 88,086 | |||||||||||||||||||
Total | $ | 590,386 | $ | 499,018 | $ | 94,496 | $ | (3,128 | ) | 91,368 | |||||||||||||||
Applicable federal income taxes | (31,979 | ) | |||||||||||||||||||||||
Net unrealized gains - net of tax | $ | 59,389 | |||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
Fixed maturities | |||||||||||||||||||||||||
U.S. government obligations | $ | 113,389 | $ | 113,348 | $ | 81 | $ | (40 | ) | $ | 41 | ||||||||||||||
Residential mortgage-backed securities | 13,252 | 12,058 | 1,334 | (140 | ) | 1,194 | |||||||||||||||||||
Commercial mortgage-backed securities | 28,565 | 28,406 | 308 | (149 | ) | 159 | |||||||||||||||||||
State and municipal obligations | 115,250 | 115,278 | 407 | (435 | ) | (28 | ) | ||||||||||||||||||
Corporate securities | 137,215 | 136,991 | 3,207 | (2,983 | ) | 224 | |||||||||||||||||||
Foreign government obligations | 23,879 | 23,689 | 588 | (398 | ) | 190 | |||||||||||||||||||
Total fixed maturities | 431,550 | 429,770 | 5,925 | (4,145 | ) | 1,780 | |||||||||||||||||||
Equity securities: | |||||||||||||||||||||||||
Financial institutions | 18,850 | 7,780 | 11,171 | (101 | ) | 11,070 | |||||||||||||||||||
Industrial & miscellaneous | 126,978 | 64,307 | 63,009 | (338 | ) | 62,671 | |||||||||||||||||||
Total equity securities | 145,828 | 72,087 | 74,180 | (439 | ) | 73,741 | |||||||||||||||||||
Total | $ | 577,378 | $ | 501,857 | $ | 80,105 | $ | (4,584 | ) | 75,521 | |||||||||||||||
Applicable federal income taxes | (26,432 | ) | |||||||||||||||||||||||
Net unrealized gains - net of tax | $ | 49,089 | |||||||||||||||||||||||
The following table summarizes, for fixed maturity and equity security investments in an unrealized loss position at June 30, 2014 and December 31, 2013, respectively, the aggregate fair value and gross unrealized loss categorized by the duration those securities have been continuously in an unrealized loss position. | |||||||||||||||||||||||||
30-Jun-14 | 31-Dec-13 | ||||||||||||||||||||||||
Number of Securities | Fair Value | Gross Unrealized Loss | Number of Securities | Fair Value | Gross Unrealized Loss | ||||||||||||||||||||
Fixed maturity securities: | |||||||||||||||||||||||||
12 months or less | 256 | $ | 61,528 | $ | (1,827 | ) | 451 | $ | 123,145 | $ | (3,105 | ) | |||||||||||||
Greater than 12 months | 86 | 30,389 | (1,064 | ) | 53 | 18,249 | (1,040 | ) | |||||||||||||||||
Total fixed maturities | 342 | 91,917 | (2,891 | ) | 504 | 141,394 | (4,145 | ) | |||||||||||||||||
Equity securities: | |||||||||||||||||||||||||
12 months or less | 10 | 3,510 | (185 | ) | 10 | 1,682 | (204 | ) | |||||||||||||||||
Greater than 12 months | 4 | 626 | (52 | ) | 2 | 1,980 | (235 | ) | |||||||||||||||||
Total equity securities | 14 | 4,136 | (237 | ) | 12 | 3,662 | (439 | ) | |||||||||||||||||
Total fixed maturity and equity securities | 356 | $ | 96,053 | $ | (3,128 | ) | 516 | $ | 145,056 | $ | (4,584 | ) | |||||||||||||
The fair value and the cost or amortized costs of fixed maturity investments at June 30, 2014, by contractual maturity, are shown below. Actual maturities may ultimately differ from contractual maturities because borrowers have, in some cases, the right to call or prepay obligations with or without call or prepayment penalties. Pre-refunded municipal bonds are classified based on their pre-refunded call dates. | |||||||||||||||||||||||||
Fair Value | Cost or Amortized Cost | ||||||||||||||||||||||||
One year or less | $ | 124,351 | $ | 124,042 | |||||||||||||||||||||
Excess of one year to five years | 165,938 | 165,905 | |||||||||||||||||||||||
Excess of five years to ten years | 62,049 | 60,694 | |||||||||||||||||||||||
Excess of ten years | 8,076 | 7,347 | |||||||||||||||||||||||
Contractual maturities | 360,414 | 357,988 | |||||||||||||||||||||||
Asset-backed securities | 69,046 | 68,190 | |||||||||||||||||||||||
Total | $ | 429,460 | $ | 426,178 | |||||||||||||||||||||
Following is a summary of the components of net realized gains on investments for the periods presented in the accompanying consolidated statements of operations. | |||||||||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||||||
30-Jun | 30-Jun | ||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||
Fixed maturities: | |||||||||||||||||||||||||
Gross gains | $ | 2,762 | $ | 2,233 | $ | 4,601 | $ | 3,652 | |||||||||||||||||
Gross losses | (926 | ) | (883 | ) | (2,152 | ) | (2,220 | ) | |||||||||||||||||
Net realized gains | 1,836 | 1,350 | 2,449 | 1,432 | |||||||||||||||||||||
Equity securities: | |||||||||||||||||||||||||
Gross gains | 1,412 | 893 | 2,153 | 12,605 | |||||||||||||||||||||
Gross losses | (359 | ) | (249 | ) | (711 | ) | (1,409 | ) | |||||||||||||||||
Net realized gains | 1,053 | 644 | 1,442 | 11,196 | |||||||||||||||||||||
Limited partnerships - net gain (loss) | 5,200 | (1,275 | ) | 8,268 | 2,438 | ||||||||||||||||||||
Totals | $ | 8,089 | $ | 719 | $ | 12,159 | $ | 15,066 | |||||||||||||||||
Net realized gains activity for investments, as shown in the previous table, are further detailed as follows: | |||||||||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||||||
30-Jun | 30-Jun | ||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||
Realized net gains on the disposal of securities | $ | 2,419 | $ | 1,554 | $ | 3,614 | $ | 10,798 | |||||||||||||||||
Mark-to-market adjustment | 469 | 195 | 269 | 405 | |||||||||||||||||||||
Equity in gains of limited partnership | |||||||||||||||||||||||||
investments - realized and unrealized | 5,200 | (1,275 | ) | 8,268 | 2,438 | ||||||||||||||||||||
Impairment: | |||||||||||||||||||||||||
Write-downs based upon objective criteria | - | (68 | ) | (105 | ) | (74 | ) | ||||||||||||||||||
Recovery of prior write-downs | |||||||||||||||||||||||||
upon sale or disposal | 1 | 313 | 113 | 1,499 | |||||||||||||||||||||
Totals | $ | 8,089 | $ | 719 | $ | 12,159 | $ | 15,066 | |||||||||||||||||
The mark-to-market adjustments in the table above represent the changes in fair value of (1) options embedded in convertible debt securities and (2) insurance-linked securities held by the Company. | |||||||||||||||||||||||||
The income from limited partnerships for the quarter and year-to-date periods ending June 30, 2014 includes an estimated $1,649 and $5,507 of net unrealized gains respectively, reported to the Company as part of the underlying assets of the various limited partnerships. The value of limited partnerships at June 30, 2014 includes approximately $12,971 of accumulated net unrealized gains reported to the Company as part of the underlying assets of the various limited partnerships. Shareholders’ equity at June 30, 2014 includes approximately $29,768, net of federal income taxes, of reported earnings which remain undistributed by limited partnerships. | |||||||||||||||||||||||||
As of June 30, 2014, the Company had committed funds totaling $64,750 to seven separate borrowers related to seven bridge loan agreements. The Company retains possession of these funds which will only be loaned in the unlikely event that long-term financing is unavailable to the counter party in the market. |
Reinsurance
Reinsurance | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Reinsurance [Abstract] | ' | ||||||||
Reinsurance | ' | ||||||||
(3) Reinsurance: | |||||||||
The following table summarizes the Company’s transactions with reinsurers for the 2014 and 2013 comparative periods. | |||||||||
2014 | 2013 | ||||||||
Quarter ended June 30: | |||||||||
Premiums ceded to reinsurers | $ | 31,111 | $ | 29,398 | |||||
Losses and loss expenses | |||||||||
ceded to reinsurers | 25,145 | 19,397 | |||||||
Commissions from reinsurers | 5,895 | 5,214 | |||||||
Six months ended June 30: | |||||||||
Premiums ceded to reinsurers | $ | 63,237 | $ | 56,411 | |||||
Losses and loss expenses | |||||||||
ceded to reinsurers | 43,601 | 41,531 | |||||||
Commissions from reinsurers | 11,575 | 9,251 |
Reportable_Segments
Reportable Segments | 6 Months Ended | ||||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||||
Reportable Segments [Abstract] | ' | ||||||||||||||||||||||||
Reportable Segments | ' | ||||||||||||||||||||||||
(4) Reportable Segments: | |||||||||||||||||||||||||
The Company has two reportable business segments in its operations: Property and Casualty Insurance and Reinsurance. | |||||||||||||||||||||||||
The Property and Casualty Insurance segment provides multiple line insurance coverage primarily to fleet transportation companies as well as to independent contractors who contract with fleet transportation companies. In addition, the Company provides private passenger automobile products to individuals, workers’ compensation coverage to small businesses and professional liability products on a selective basis. | |||||||||||||||||||||||||
The Reinsurance segment accepts professional liability cessions from other insurance companies. In addition, the Reinsurance segment accepts property cessions from other insurance companies and, prior to January 1, 2014, retrocessions from carefully chosen reinsurance companies, principally reinsuring against catastrophes. | |||||||||||||||||||||||||
The following table provides certain revenue and profit and loss information for each reportable segment. All amounts presented are computed based upon U.S. generally accepted accounting principles. Segment profit for Property and Casualty Insurance includes the direct marketing agency operations conducted by the parent company for this segment and is computed after elimination of inter-company commissions. | |||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
Direct and Assumed Premium Written | Net Premium Earned | Segment Profit (Loss) | Direct and Assumed Premium Written | Net Premium Earned | Segment Profit | ||||||||||||||||||||
Three months ended June 30: | |||||||||||||||||||||||||
Property and Casualty Insurance | $ | 85,826 | $ | 55,057 | $ | 8,864 | $ | 80,756 | $ | 49,803 | $ | 5,405 | |||||||||||||
Reinsurance | 9,272 | 7,848 | (786 | ) | 12,074 | 11,972 | 2,910 | ||||||||||||||||||
Totals | $ | 95,098 | $ | 62,905 | $ | 8,078 | $ | 92,830 | $ | 61,775 | $ | 8,315 | |||||||||||||
Six months ended June 30: | |||||||||||||||||||||||||
Property and Casualty Insurance | $ | 168,750 | $ | 106,516 | $ | 14,207 | $ | 150,945 | $ | 97,663 | $ | 10,641 | |||||||||||||
Reinsurance | 21,102 | 20,231 | 1,102 | 25,776 | 25,210 | 7,679 | |||||||||||||||||||
Totals | $ | 189,852 | $ | 126,747 | $ | 15,309 | $ | 176,721 | $ | 122,873 | $ | 18,320 | |||||||||||||
The following table reconciles reportable segment income to the Company’s consolidated income before federal income taxes. | |||||||||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||||||
30-Jun | 30-Jun | ||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||
Profit: | |||||||||||||||||||||||||
Segment profit | $ | 8,078 | $ | 8,315 | $ | 15,309 | $ | 18,320 | |||||||||||||||||
Net investment income | 2,090 | 1,985 | 4,383 | 4,395 | |||||||||||||||||||||
Net gains on investments | 8,089 | 719 | 12,159 | 15,066 | |||||||||||||||||||||
Corporate expenses and other | (4,220 | ) | (3,757 | ) | (8,375 | ) | (7,840 | ) | |||||||||||||||||
Income before federal income taxes | $ | 14,037 | $ | 7,262 | $ | 23,476 | $ | 29,941 | |||||||||||||||||
Segment profit includes both net premiums earned and fees and other income associated with the business conducted by the segment. | |||||||||||||||||||||||||
Management does not identify or allocate assets to reportable segments when evaluating segment performance and depreciation expense is not material for any of the reportable segments. |
Debt
Debt | 6 Months Ended |
Jun. 30, 2014 | |
Debt [Abstract] | ' |
Debt | ' |
(5) Debt: | |
The Company maintains a revolving line of credit with a $30,000 limit and an expiration date of September 23, 2014. Interest on this line of credit is referenced to LIBOR and can be fixed for periods of up to one year at the Company’s option. Outstanding drawings on this line of credit were $20,000 as of June 30, 2014 and $10,000 as of December 31, 2013. At June 30, 2014, the effective interest rate was 1.55%. The Company has $10,000 remaining unused under the line of credit at June 30, 2014. |
Taxes
Taxes | 6 Months Ended |
Jun. 30, 2014 | |
Taxes [Abstract] | ' |
Taxes | ' |
(6) Taxes: | |
As of June 30, 2014, the Company’s calendar years 2010 through 2013 remain subject to examination by the IRS. The effective rate differs from the normal statutory rate primarily as a result of tax-exempt investment income. |
Fair_Value
Fair Value | 6 Months Ended | ||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||
Fair Value [Abstract] | ' | ||||||||||||||||||||
Fair Value | ' | ||||||||||||||||||||
(7) Fair Value: | |||||||||||||||||||||
Assets and liabilities recorded at fair value in the consolidated balance sheets are categorized based upon the level of judgment associated with the inputs used to measure their fair value. The following tables summarize fair value measurements by level for assets measured at fair value on a recurring basis: | |||||||||||||||||||||
As of June 30, 2014: | |||||||||||||||||||||
Description | Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||
Fixed maturities: | |||||||||||||||||||||
U.S. government obligations | $ | 119,517 | $ | 119,517 | $ | - | $ | - | |||||||||||||
Residential mortgage-backed securities | 7,935 | - | 7,935 | - | |||||||||||||||||
Commercial mortgage-backed securities | 26,618 | - | 26,618 | - | |||||||||||||||||
State and municipal obligations | 114,212 | - | 114,212 | - | |||||||||||||||||
Corporate securities | 132,496 | - | 132,496 | - | |||||||||||||||||
Options embedded in convertible securities | 2,939 | - | 2,939 | - | |||||||||||||||||
Foreign government obligations | 25,743 | - | 25,743 | - | |||||||||||||||||
Total fixed maturities | 429,460 | 119,517 | 309,943 | - | |||||||||||||||||
Equity securities: | |||||||||||||||||||||
Financial institutions | 20,456 | 20,456 | - | - | |||||||||||||||||
Industrial & miscellaneous | 140,470 | 140,470 | - | - | |||||||||||||||||
Total equity securities | 160,926 | 160,926 | - | - | |||||||||||||||||
Short term | 3,162 | 3,162 | - | - | |||||||||||||||||
Cash equivalents | 70,482 | - | 70,482 | - | |||||||||||||||||
$ | 664,030 | $ | 283,605 | $ | 380,425 | $ | - | ||||||||||||||
As of December 31, 2013: | |||||||||||||||||||||
Description | Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||
Fixed maturities: | |||||||||||||||||||||
U.S. government obligations | $ | 113,389 | $ | 113,389 | $ | - | $ | - | |||||||||||||
Residential mortgage-backed securities | 13,252 | - | 13,252 | - | |||||||||||||||||
Commercial mortgage-backed securities | 28,565 | - | 28,565 | - | |||||||||||||||||
State and municipal obligations | 115,250 | - | 115,250 | - | |||||||||||||||||
Corporate securities | 134,635 | - | 134,635 | - | |||||||||||||||||
Options embedded in convertible securities | 2,580 | - | 2,580 | - | |||||||||||||||||
Foreign government obligations | 23,879 | - | 23,879 | - | |||||||||||||||||
Total fixed maturities | 431,550 | 113,389 | 318,161 | - | |||||||||||||||||
Equity securities: | |||||||||||||||||||||
Financial institutions | 18,850 | 18,850 | - | - | |||||||||||||||||
Industrial & miscellaneous | 126,978 | 126,978 | - | - | |||||||||||||||||
Total equity securities | 145,828 | 145,828 | - | - | |||||||||||||||||
Short term | 4,891 | 4,891 | - | - | |||||||||||||||||
Cash equivalents | 52,002 | - | 52,002 | - | |||||||||||||||||
$ | 634,271 | $ | 264,108 | $ | 370,163 | $ | - | ||||||||||||||
Level inputs, as defined by FASB Fair Value Measurements, are as follows: | |||||||||||||||||||||
Level Input: | Input Definition: | ||||||||||||||||||||
Level 1 | Inputs are unadjusted, quoted prices for identical assets or liabilities in active markets at the measurement date. | ||||||||||||||||||||
Level 2 | Inputs other than quoted prices included in Level 1 that are observable for the asset or liability through corroboration with market data at the measurement date. | ||||||||||||||||||||
Level 3 | Unobservable inputs that reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. | ||||||||||||||||||||
The following methods, assumptions and inputs were used to determine the fair value of each class of the following assets recorded at fair value in the consolidated balance sheets: | |||||||||||||||||||||
Cash equivalents: Cash equivalents primarily consist of highly rated money market funds purchased at par value with specified yield rates. Due to underlying assets of these funds, we designate all cash equivalents as Level 2. | |||||||||||||||||||||
Fixed maturities: Fair values of fixed maturities are based on quoted market prices, where available. These fair values are obtained primarily from third party pricing services, which generally use Level 1 or Level 2 inputs for the determination of fair value to facilitate fair value measurements and disclosures. U.S. government obligations represent Level 1 securities, while Level 2 securities primarily include corporate securities, states and municipal obligations, foreign government obligations, and mortgage-backed securities. For securities not actively traded, the third party pricing services may use quoted market prices of comparable instruments or discounted cash flow analyses, incorporating inputs that are currently observable in the markets for similar securities. Inputs that are often used in the valuation methodologies include, but are not limited to, broker quotes, benchmark yields, credit spreads, default rates and prepayment speeds. | |||||||||||||||||||||
Insurance-linked securities: During the fourth quarter of 2013, the Company determined that insurance-linked securities have adequate quoted market prices. Therefore, the insurance-linked securities were transferred to Level 2. They were previously classified as Level 3. | |||||||||||||||||||||
Equity securities: Fair values of equity securities are designated as Level 1 and are based on quoted market prices. | |||||||||||||||||||||
A reconciliation of the beginning and ending balances of assets measured at fair value on a recurring basis using Level 3 inputs is as follows for the six months ended June 30, 2014 and for the year ended December 31, 2013: | |||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
Beginning of period balance | $ | - | $ | 11,682 | |||||||||||||||||
Total gains or losses (realized or unrealized) | |||||||||||||||||||||
included in income | - | 1,017 | |||||||||||||||||||
Purchases | - | 1,258 | |||||||||||||||||||
Settlements | - | (6,698 | ) | ||||||||||||||||||
Transfers out of level 3 | (7,259 | ) | |||||||||||||||||||
End of period balance | $ | - | $ | - | |||||||||||||||||
Transfers between levels, if any, are recorded as of the beginning of the reporting period. There were no significant transfers of assets between Level 1 and Level 2 during the six months ended June 30, 2014 and 2013. | |||||||||||||||||||||
In addition to the preceding disclosures on assets recorded at fair value in the consolidated balance sheets, FASB guidance also requires the disclosure of fair values for certain other financial instruments for which it is practicable to estimate fair value, whether or not such values are recognized in the consolidated balance sheets. | |||||||||||||||||||||
Non-financial instruments such as real estate, property and equipment, other assets, deferred income taxes and intangible assets, and certain financial instruments such as reserves for losses and loss expenses are excluded from the fair value disclosures. Therefore, the fair value amounts cannot be aggregated to determine the Company’s underlying economic value. | |||||||||||||||||||||
The carrying amounts reported in the consolidated balance sheets for cash, accounts receivables, reinsurance recoverable, notes receivable, accounts payable and accrued expenses, income taxes receivable or payable and unearned premiums approximate fair value because of the short term nature of these items. These assets and liabilities are not included in the table below. | |||||||||||||||||||||
The following methods, assumptions and inputs were used to estimate the fair value of each class of financial instrument: | |||||||||||||||||||||
Limited partnerships: The Company accounts for investments in limited partnerships using the equity method of accounting, which requires an investor in a limited partnership to carry the investment at its proportionate share of the limited partnership’s equity. The underlying assets of the Company’s investments in limited partnerships are carried primarily at fair value, and, therefore, the Company’s carrying value of limited partnerships approximates fair value. As these investments are not actively traded and the corresponding inputs are based on data provided by the investees, they are classified as Level 3. | |||||||||||||||||||||
Short-term borrowings: The fair value of our short-term borrowings is based on quoted market prices for the same or similar debt, or, if no quoted market prices are available, on the current market interest rates available to us for debt of similar terms and remaining maturities. | |||||||||||||||||||||
A summary of the carrying value and fair value by level of financial instruments not recorded at fair value on the Company’s consolidated balance sheets at June 30, 2014 and December 31, 2013 are as follows: | |||||||||||||||||||||
Carrying | Fair Value | ||||||||||||||||||||
Value | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||
30-Jun-14 | |||||||||||||||||||||
Assets: Limited partnerships | $ | 78,892 | $ | - | $ | - | $ | 78,892 | $ | 78,892 | |||||||||||
Liabilities: Short-term borrowings | 20,000 | - | 20,000 | - | 20,000 | ||||||||||||||||
31-Dec-13 | |||||||||||||||||||||
Assets: Limited partnerships | 68,988 | - | - | 68,988 | 68,988 | ||||||||||||||||
Liabilities: Short-term borrowings | 10,000 | - | 10,000 | - | 10,000 |
Restricted_Stock
Restricted Stock | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Restricted Stock [Abstract] | ' | ||||||||
Restricted Stock | ' | ||||||||
(8) Restricted Stock: | |||||||||
The Company grants shares of class B restricted stock to the Company’s outside directors, in lieu of cash, as their annual retainer compensation. The shares are distributed on the vesting date, one year following the date of grant, and have had an aggregate total value of $440 for each of the annual periods presented. The table below provides detail of the stock issuances for 2013 and 2014: | |||||||||
Value | |||||||||
Per Share | |||||||||
Effective | Number of Shares | Vesting | Service | on Grant | |||||
Date | Issued | Date | Period | Date | |||||
5/7/13 | 18,106 | 5/7/14 | 7/1/2013 - 6/30/2014 | $24.30 | |||||
5/8/14 | 17,237 | 5/8/15 | 7/1/2014 - 6/30/2015 | $25.53 | |||||
Compensation expense related to the above stock grant is recognized over the period in which the directors render the services. | |||||||||
Effective February 4, 2014, the Company issued 45,678 shares of class B restricted stock to certain of the Company’s executives as a portion of compensation under the Company’s 2013 Executive Incentive Bonus Plan. The restricted shares will vest ratably over a three year period from the date of grant with acceleration for retirement eligible recipients due to the non-substantive post-grant date vesting clause per Accounting Standards Codification 715, Compensation-Retirement Benefits. Restricted stock was valued based on the closing price of the stock on the day the award was granted. Each share was valued at $23.81 per share | |||||||||
representing a total value of $1,088. Non-vested restricted shares will be forfeited should an executive’s employment terminate for any reason other than death, disability, or retirement as defined by the 2013 Executive Incentive Bonus Plan. |
Litigation_Commitments_and_Con
Litigation, Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2014 | |
Litigation, Commitments and Contingencies [Abstract] | ' |
Litigation, Commitments and Contingencies | ' |
(9) Litigation, Commitments and Contingencies: | |
In the ordinary, regular and routine course of their business, the Company and its insurance Subsidiaries are frequently involved in various matters of litigation relating principally to claims for insurance coverage provided. No currently pending matter is deemed by management to be material to the Company. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income | 6 Months Ended | ||||||||||||
Jun. 30, 2014 | |||||||||||||
Accumulated Other Comprehensive Income [Abstract] | ' | ||||||||||||
Accumulated Other Comprehensive Income | ' | ||||||||||||
(10) Accumulated Other Comprehensive Income: | |||||||||||||
The following table illustrates changes in accumulated other comprehensive income by component for the six months ending June 30, 2014: | |||||||||||||
Unrealized | |||||||||||||
holding gains on | |||||||||||||
Foreign | available-for-sale | ||||||||||||
Currency | securities | Total | |||||||||||
Beginning balance | $ | 1,401 | $ | 49,089 | $ | 50,490 | |||||||
Other comprehensive income | |||||||||||||
before reclassifications | (130 | ) | 12,829 | 12,699 | |||||||||
Amounts reclassified from | |||||||||||||
accumulated other | |||||||||||||
comprehensive income | - | (2,529 | ) | (2,529 | ) | ||||||||
Net current-period other | |||||||||||||
comprehensive income | (130 | ) | 10,300 | 10,170 | |||||||||
Ending balance | $ | 1,271 | $ | 59,389 | $ | 60,660 |
Subsequent_Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2014 | |
Subsequent Events [Abstract] | ' |
Subsequent Events | ' |
(11) Subsequent Events: | |
We have evaluated subsequent events for recognition or disclosure in the consolidated financial statements filed on Form 10-Q with the SEC and no events have occurred during the period which require recognition or disclosure. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2014 | |
Summary of Significant Accounting Policies [Abstract] | ' |
Basis of Presentation | ' |
Basis of Presentation: The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and do not include all of the information and notes required by U.S. generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for fair presentation have been included. Operating results for the interim periods are not necessarily indicative of the results that may be expected for the year ended December 31, 2014. Interim financial statements should be read in conjunction with the Company’s annual audited financial statements and other disclosures included in the Company’s most recent Form 10-K. | |
Investments | ' |
Investments: Carrying amounts for fixed maturity securities represent fair value and are based on quoted market prices, where available, or broker/dealer quotes for specific securities where quoted market prices are not available. Equity securities are carried at quoted market prices (fair value). The Company accounts for investments in limited partnerships using the equity method of accounting, which requires an investor in a limited partnership to record its proportionate share of the limited partnership’s net income. To the extent that the limited partnership investees include both realized and unrealized investment gains or losses in the determination of net income or loss, then the Company would also recognize, through its consolidated statements of operations, its proportionate share of the investee’s unrealized as well as realized investment gains or losses. | |
Other investments, if any, are carried at either fair value or cost, depending on the nature of the investment. Short-term investments are carried at cost which approximates their fair values. | |
Realized gains and losses on disposals of investments are determined by specific identification of the cost of investments sold and are included in income. All fixed maturity and equity securities are considered to be available for sale; the related unrealized net gains or losses (net of applicable tax effect) are reflected directly in shareholders’ equity. Included within available for sale fixed maturity securities are insurance-linked securities and convertible debt securities. The changes in fair values of insurance-linked securities and portions of the changes in fair values of convertible debt securities are reflected as a component of net realized gains (losses). | |
With respect to other–than-temporary impairment of investments, if a fixed maturity security is in an unrealized loss position and the Company has the intent to sell the fixed maturity security, or it is more likely than not that the Company will have to sell the fixed maturity security before recovery of its amortized cost basis, the decline in value is deemed to be other-than-temporary and is recorded to net realized losses on investments in the consolidated statements of operations. For impaired fixed maturity securities that the Company does not intend to sell or it is more likely than not that the Company will not have to sell such securities, but the Company expects that it will not fully recover the amortized cost basis, the credit component of the other-than-temporary impairment is recognized in net realized losses on investments in the consolidated statements of operations and the non-credit component of the other-than-temporary impairment is recognized directly in shareholders’ equity (accumulated other comprehensive income). | |
The credit component of an other-than-temporary impairment is determined by comparing the net present value of projected future cash flows with the amortized cost basis of the fixed maturity security. Furthermore, unrealized losses caused by non-credit related factors related to fixed maturity securities for which the Company expects to fully recover the amortized cost basis continue to be recognized in accumulated other comprehensive income. | |
The unrealized net gains or losses (net of applicable tax effect) related to equity securities are reflected directly in shareholders’ equity, unless a decline in value is determined to be other-than-temporary, in which case the loss is charged to income. In determining if and when a decline in market value below cost is other-than-temporary, an objective analysis is made of each individual security where current market value is less than cost. For any equity security where the unrealized loss exceeds 20% of original or adjusted cost, and where that decline has existed for a period of at least six months, the decline is treated as an other-than-temporary impairment, subject to an evaluation as to possible future recovery. Additionally, the Company takes into account any known subjective information in evaluating for impairment without consideration to the Company’s quantitative criteria defined above. |
Investments_Tables
Investments (Tables) | 6 Months Ended | ||||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||||
Investments [Abstract] | ' | ||||||||||||||||||||||||
Summary of available for sale securities | ' | ||||||||||||||||||||||||
The following is a summary of available-for-sale securities at June 30, 2014 and December 31, 2013: | |||||||||||||||||||||||||
Net | |||||||||||||||||||||||||
Cost or | Gross | Gross | Unrealized | ||||||||||||||||||||||
Fair | Amortized | Unrealized | Unrealized | Gains | |||||||||||||||||||||
Value | Cost | Gains | Losses | (Losses) | |||||||||||||||||||||
30-Jun-14 | |||||||||||||||||||||||||
Fixed maturities | |||||||||||||||||||||||||
U.S. government obligations | $ | 119,517 | $ | 119,356 | $ | 176 | $ | (15 | ) | $ | 161 | ||||||||||||||
Residential mortgage-backed securities | 7,935 | 7,574 | 424 | (63 | ) | 361 | |||||||||||||||||||
Commercial mortgage-backed securities | 26,618 | 25,878 | 815 | (75 | ) | 740 | |||||||||||||||||||
States and municipal obligations | 114,212 | 113,481 | 861 | (130 | ) | 731 | |||||||||||||||||||
Corporate securities | 135,435 | 134,469 | 3,426 | (2,460 | ) | 966 | |||||||||||||||||||
Foreign government obligations | 25,743 | 25,420 | 471 | (148 | ) | 323 | |||||||||||||||||||
Total fixed maturities | 429,460 | 426,178 | 6,173 | (2,891 | ) | 3,282 | |||||||||||||||||||
Equity securities: | |||||||||||||||||||||||||
Financial institutions | 20,456 | 8,565 | 11,907 | (16 | ) | 11,891 | |||||||||||||||||||
Industrial & miscellaneous | 140,470 | 64,275 | 76,416 | (221 | ) | 76,195 | |||||||||||||||||||
Total equity securities | 160,926 | 72,840 | 88,323 | (237 | ) | 88,086 | |||||||||||||||||||
Total | $ | 590,386 | $ | 499,018 | $ | 94,496 | $ | (3,128 | ) | 91,368 | |||||||||||||||
Applicable federal income taxes | (31,979 | ) | |||||||||||||||||||||||
Net unrealized gains - net of tax | $ | 59,389 | |||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
Fixed maturities | |||||||||||||||||||||||||
U.S. government obligations | $ | 113,389 | $ | 113,348 | $ | 81 | $ | (40 | ) | $ | 41 | ||||||||||||||
Residential mortgage-backed securities | 13,252 | 12,058 | 1,334 | (140 | ) | 1,194 | |||||||||||||||||||
Commercial mortgage-backed securities | 28,565 | 28,406 | 308 | (149 | ) | 159 | |||||||||||||||||||
State and municipal obligations | 115,250 | 115,278 | 407 | (435 | ) | (28 | ) | ||||||||||||||||||
Corporate securities | 137,215 | 136,991 | 3,207 | (2,983 | ) | 224 | |||||||||||||||||||
Foreign government obligations | 23,879 | 23,689 | 588 | (398 | ) | 190 | |||||||||||||||||||
Total fixed maturities | 431,550 | 429,770 | 5,925 | (4,145 | ) | 1,780 | |||||||||||||||||||
Equity securities: | |||||||||||||||||||||||||
Financial institutions | 18,850 | 7,780 | 11,171 | (101 | ) | 11,070 | |||||||||||||||||||
Industrial & miscellaneous | 126,978 | 64,307 | 63,009 | (338 | ) | 62,671 | |||||||||||||||||||
Total equity securities | 145,828 | 72,087 | 74,180 | (439 | ) | 73,741 | |||||||||||||||||||
Total | $ | 577,378 | $ | 501,857 | $ | 80,105 | $ | (4,584 | ) | 75,521 | |||||||||||||||
Applicable federal income taxes | (26,432 | ) | |||||||||||||||||||||||
Net unrealized gains - net of tax | $ | 49,089 | |||||||||||||||||||||||
Fixed maturity and equity security investments in unrealized loss position | ' | ||||||||||||||||||||||||
The following table summarizes, for fixed maturity and equity security investments in an unrealized loss position at June 30, 2014 and December 31, 2013, respectively, the aggregate fair value and gross unrealized loss categorized by the duration those securities have been continuously in an unrealized loss position. | |||||||||||||||||||||||||
30-Jun-14 | 31-Dec-13 | ||||||||||||||||||||||||
Number of Securities | Fair Value | Gross Unrealized Loss | Number of Securities | Fair Value | Gross Unrealized Loss | ||||||||||||||||||||
Fixed maturity securities: | |||||||||||||||||||||||||
12 months or less | 256 | $ | 61,528 | $ | (1,827 | ) | 451 | $ | 123,145 | $ | (3,105 | ) | |||||||||||||
Greater than 12 months | 86 | 30,389 | (1,064 | ) | 53 | 18,249 | (1,040 | ) | |||||||||||||||||
Total fixed maturities | 342 | 91,917 | (2,891 | ) | 504 | 141,394 | (4,145 | ) | |||||||||||||||||
Equity securities: | |||||||||||||||||||||||||
12 months or less | 10 | 3,510 | (185 | ) | 10 | 1,682 | (204 | ) | |||||||||||||||||
Greater than 12 months | 4 | 626 | (52 | ) | 2 | 1,980 | (235 | ) | |||||||||||||||||
Total equity securities | 14 | 4,136 | (237 | ) | 12 | 3,662 | (439 | ) | |||||||||||||||||
Total fixed maturity and equity securities | 356 | $ | 96,053 | $ | (3,128 | ) | 516 | $ | 145,056 | $ | (4,584 | ) | |||||||||||||
Fair value and cost or amortized cost of fixed maturity investments by contractual maturity | ' | ||||||||||||||||||||||||
The fair value and the cost or amortized costs of fixed maturity investments at June 30, 2014, by contractual maturity, are shown below. Actual maturities may ultimately differ from contractual maturities because borrowers have, in some cases, the right to call or prepay obligations with or without call or prepayment penalties. Pre-refunded municipal bonds are classified based on their pre-refunded call dates. | |||||||||||||||||||||||||
Fair Value | Cost or Amortized Cost | ||||||||||||||||||||||||
One year or less | $ | 124,351 | $ | 124,042 | |||||||||||||||||||||
Excess of one year to five years | 165,938 | 165,905 | |||||||||||||||||||||||
Excess of five years to ten years | 62,049 | 60,694 | |||||||||||||||||||||||
Excess of ten years | 8,076 | 7,347 | |||||||||||||||||||||||
Contractual maturities | 360,414 | 357,988 | |||||||||||||||||||||||
Asset-backed securities | 69,046 | 68,190 | |||||||||||||||||||||||
Total | $ | 429,460 | $ | 426,178 | |||||||||||||||||||||
Realized gains (losses) on investments | ' | ||||||||||||||||||||||||
Following is a summary of the components of net realized gains on investments for the periods presented in the accompanying consolidated statements of operations. | |||||||||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||||||
30-Jun | 30-Jun | ||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||
Fixed maturities: | |||||||||||||||||||||||||
Gross gains | $ | 2,762 | $ | 2,233 | $ | 4,601 | $ | 3,652 | |||||||||||||||||
Gross losses | (926 | ) | (883 | ) | (2,152 | ) | (2,220 | ) | |||||||||||||||||
Net realized gains | 1,836 | 1,350 | 2,449 | 1,432 | |||||||||||||||||||||
Equity securities: | |||||||||||||||||||||||||
Gross gains | 1,412 | 893 | 2,153 | 12,605 | |||||||||||||||||||||
Gross losses | (359 | ) | (249 | ) | (711 | ) | (1,409 | ) | |||||||||||||||||
Net realized gains | 1,053 | 644 | 1,442 | 11,196 | |||||||||||||||||||||
Limited partnerships - net gain (loss) | 5,200 | (1,275 | ) | 8,268 | 2,438 | ||||||||||||||||||||
Totals | $ | 8,089 | $ | 719 | $ | 12,159 | $ | 15,066 | |||||||||||||||||
Schedule of realized gains | ' | ||||||||||||||||||||||||
Net realized gains activity for investments, as shown in the previous table, are further detailed as follows: | |||||||||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||||||
30-Jun | 30-Jun | ||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||
Realized net gains on the disposal of securities | $ | 2,419 | $ | 1,554 | $ | 3,614 | $ | 10,798 | |||||||||||||||||
Mark-to-market adjustment | 469 | 195 | 269 | 405 | |||||||||||||||||||||
Equity in gains of limited partnership | |||||||||||||||||||||||||
investments - realized and unrealized | 5,200 | (1,275 | ) | 8,268 | 2,438 | ||||||||||||||||||||
Impairment: | |||||||||||||||||||||||||
Write-downs based upon objective criteria | - | (68 | ) | (105 | ) | (74 | ) | ||||||||||||||||||
Recovery of prior write-downs | |||||||||||||||||||||||||
upon sale or disposal | 1 | 313 | 113 | 1,499 | |||||||||||||||||||||
Totals | $ | 8,089 | $ | 719 | $ | 12,159 | $ | 15,066 |
Reinsurance_Tables
Reinsurance (Tables) | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Reinsurance [Abstract] | ' | ||||||||
Reinsurance | ' | ||||||||
The following table summarizes the Company’s transactions with reinsurers for the 2014 and 2013 comparative periods. | |||||||||
2014 | 2013 | ||||||||
Quarter ended June 30: | |||||||||
Premiums ceded to reinsurers | $ | 31,111 | $ | 29,398 | |||||
Losses and loss expenses | |||||||||
ceded to reinsurers | 25,145 | 19,397 | |||||||
Commissions from reinsurers | 5,895 | 5,214 | |||||||
Six months ended June 30: | |||||||||
Premiums ceded to reinsurers | $ | 63,237 | $ | 56,411 | |||||
Losses and loss expenses | |||||||||
ceded to reinsurers | 43,601 | 41,531 | |||||||
Commissions from reinsurers | 11,575 | 9,251 |
Reportable_Segments_Tables
Reportable Segments (Tables) | 6 Months Ended | ||||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||||
Reportable Segments [Abstract] | ' | ||||||||||||||||||||||||
Schedule of Segment Reporting Information, by Segment | ' | ||||||||||||||||||||||||
The following table provides certain revenue and profit and loss information for each reportable segment. All amounts presented are computed based upon U.S. generally accepted accounting principles. Segment profit for Property and Casualty Insurance includes the direct marketing agency operations conducted by the parent company for this segment and is computed after elimination of inter-company commissions. | |||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
Direct and Assumed Premium Written | Net Premium Earned | Segment Profit (Loss) | Direct and Assumed Premium Written | Net Premium Earned | Segment Profit | ||||||||||||||||||||
Three months ended June 30: | |||||||||||||||||||||||||
Property and Casualty Insurance | $ | 85,826 | $ | 55,057 | $ | 8,864 | $ | 80,756 | $ | 49,803 | $ | 5,405 | |||||||||||||
Reinsurance | 9,272 | 7,848 | (786 | ) | 12,074 | 11,972 | 2,910 | ||||||||||||||||||
Totals | $ | 95,098 | $ | 62,905 | $ | 8,078 | $ | 92,830 | $ | 61,775 | $ | 8,315 | |||||||||||||
Six months ended June 30: | |||||||||||||||||||||||||
Property and Casualty Insurance | $ | 168,750 | $ | 106,516 | $ | 14,207 | $ | 150,945 | $ | 97,663 | $ | 10,641 | |||||||||||||
Reinsurance | 21,102 | 20,231 | 1,102 | 25,776 | 25,210 | 7,679 | |||||||||||||||||||
Totals | $ | 189,852 | $ | 126,747 | $ | 15,309 | $ | 176,721 | $ | 122,873 | $ | 18,320 | |||||||||||||
Reconciliation of Operating Profit (Loss) from Segments to Consolidated | ' | ||||||||||||||||||||||||
The following table reconciles reportable segment income to the Company’s consolidated income before federal income taxes. | |||||||||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||||||
30-Jun | 30-Jun | ||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||
Profit: | |||||||||||||||||||||||||
Segment profit | $ | 8,078 | $ | 8,315 | $ | 15,309 | $ | 18,320 | |||||||||||||||||
Net investment income | 2,090 | 1,985 | 4,383 | 4,395 | |||||||||||||||||||||
Net gains on investments | 8,089 | 719 | 12,159 | 15,066 | |||||||||||||||||||||
Corporate expenses and other | (4,220 | ) | (3,757 | ) | (8,375 | ) | (7,840 | ) | |||||||||||||||||
Income before federal income taxes | $ | 14,037 | $ | 7,262 | $ | 23,476 | $ | 29,941 |
Fair_Value_Tables
Fair Value (Tables) | 6 Months Ended | ||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||
Fair Value [Abstract] | ' | ||||||||||||||||||||
Fair value measurements by level for assets measured at fair value on a recurring basis | ' | ||||||||||||||||||||
Assets and liabilities recorded at fair value in the consolidated balance sheets are categorized based upon the level of judgment associated with the inputs used to measure their fair value. The following tables summarize fair value measurements by level for assets measured at fair value on a recurring basis: | |||||||||||||||||||||
As of June 30, 2014: | |||||||||||||||||||||
Description | Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||
Fixed maturities: | |||||||||||||||||||||
U.S. government obligations | $ | 119,517 | $ | 119,517 | $ | - | $ | - | |||||||||||||
Residential mortgage-backed securities | 7,935 | - | 7,935 | - | |||||||||||||||||
Commercial mortgage-backed securities | 26,618 | - | 26,618 | - | |||||||||||||||||
State and municipal obligations | 114,212 | - | 114,212 | - | |||||||||||||||||
Corporate securities | 132,496 | - | 132,496 | - | |||||||||||||||||
Options embedded in convertible securities | 2,939 | - | 2,939 | - | |||||||||||||||||
Foreign government obligations | 25,743 | - | 25,743 | - | |||||||||||||||||
Total fixed maturities | 429,460 | 119,517 | 309,943 | - | |||||||||||||||||
Equity securities: | |||||||||||||||||||||
Financial institutions | 20,456 | 20,456 | - | - | |||||||||||||||||
Industrial & miscellaneous | 140,470 | 140,470 | - | - | |||||||||||||||||
Total equity securities | 160,926 | 160,926 | - | - | |||||||||||||||||
Short term | 3,162 | 3,162 | - | - | |||||||||||||||||
Cash equivalents | 70,482 | - | 70,482 | - | |||||||||||||||||
$ | 664,030 | $ | 283,605 | $ | 380,425 | $ | - | ||||||||||||||
As of December 31, 2013: | |||||||||||||||||||||
Description | Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||
Fixed maturities: | |||||||||||||||||||||
U.S. government obligations | $ | 113,389 | $ | 113,389 | $ | - | $ | - | |||||||||||||
Residential mortgage-backed securities | 13,252 | - | 13,252 | - | |||||||||||||||||
Commercial mortgage-backed securities | 28,565 | - | 28,565 | - | |||||||||||||||||
State and municipal obligations | 115,250 | - | 115,250 | - | |||||||||||||||||
Corporate securities | 134,635 | - | 134,635 | - | |||||||||||||||||
Options embedded in convertible securities | 2,580 | - | 2,580 | - | |||||||||||||||||
Foreign government obligations | 23,879 | - | 23,879 | - | |||||||||||||||||
Total fixed maturities | 431,550 | 113,389 | 318,161 | - | |||||||||||||||||
Equity securities: | |||||||||||||||||||||
Financial institutions | 18,850 | 18,850 | - | - | |||||||||||||||||
Industrial & miscellaneous | 126,978 | 126,978 | - | - | |||||||||||||||||
Total equity securities | 145,828 | 145,828 | - | - | |||||||||||||||||
Short term | 4,891 | 4,891 | - | - | |||||||||||||||||
Cash equivalents | 52,002 | - | 52,002 | - | |||||||||||||||||
$ | 634,271 | $ | 264,108 | $ | 370,163 | $ | - | ||||||||||||||
Reconciliation of beginning and ending balances of assets measured at fair value on a recurring basis using level 3 inputs | ' | ||||||||||||||||||||
A reconciliation of the beginning and ending balances of assets measured at fair value on a recurring basis using Level 3 inputs is as follows for the six months ended June 30, 2014 and for the year ended December 31, 2013: | |||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
Beginning of period balance | $ | - | $ | 11,682 | |||||||||||||||||
Total gains or losses (realized or unrealized) | |||||||||||||||||||||
included in income | - | 1,017 | |||||||||||||||||||
Purchases | - | 1,258 | |||||||||||||||||||
Settlements | - | (6,698 | ) | ||||||||||||||||||
Transfers out of level 3 | (7,259 | ) | |||||||||||||||||||
End of period balance | $ | - | $ | - | |||||||||||||||||
Summary of the carrying value and fair value by level of financial instruments | ' | ||||||||||||||||||||
A summary of the carrying value and fair value by level of financial instruments not recorded at fair value on the Company’s consolidated balance sheets at June 30, 2014 and December 31, 2013 are as follows: | |||||||||||||||||||||
Carrying | Fair Value | ||||||||||||||||||||
Value | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||
30-Jun-14 | |||||||||||||||||||||
Assets: Limited partnerships | $ | 78,892 | $ | - | $ | - | $ | 78,892 | $ | 78,892 | |||||||||||
Liabilities: Short-term borrowings | 20,000 | - | 20,000 | - | 20,000 | ||||||||||||||||
31-Dec-13 | |||||||||||||||||||||
Assets: Limited partnerships | 68,988 | - | - | 68,988 | 68,988 | ||||||||||||||||
Liabilities: Short-term borrowings | 10,000 | - | 10,000 | - | 10,000 |
Restricted_Stock_Tables
Restricted Stock (Tables) | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Restricted Stock [Abstract] | ' | ||||||||
Summary of stock issuances | ' | ||||||||
The Company grants shares of class B restricted stock to the Company’s outside directors, in lieu of cash, as their annual retainer compensation. The shares are distributed on the vesting date, one year following the date of grant, and have had an aggregate total value of $440 for each of the annual periods presented. The table below provides detail of the stock issuances for 2013 and 2014: | |||||||||
Value | |||||||||
Per Share | |||||||||
Effective | Number of Shares | Vesting | Service | on Grant | |||||
Date | Issued | Date | Period | Date | |||||
5/7/13 | 18,106 | 5/7/14 | 7/1/2013 - 6/30/2014 | $24.30 | |||||
5/8/14 | 17,237 | 5/8/15 | 7/1/2014 - 6/30/2015 | $25.53 |
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Tables) | 6 Months Ended | ||||||||||||
Jun. 30, 2014 | |||||||||||||
Accumulated Other Comprehensive Income [Abstract] | ' | ||||||||||||
Changes in Accumulated Other Comprehensive Income by Component | ' | ||||||||||||
The following table illustrates changes in accumulated other comprehensive income by component for the six months ending June 30, 2014: | |||||||||||||
Unrealized | |||||||||||||
holding gains on | |||||||||||||
Foreign | available-for-sale | ||||||||||||
Currency | securities | Total | |||||||||||
Beginning balance | $ | 1,401 | $ | 49,089 | $ | 50,490 | |||||||
Other comprehensive income | |||||||||||||
before reclassifications | (130 | ) | 12,829 | 12,699 | |||||||||
Amounts reclassified from | |||||||||||||
accumulated other | |||||||||||||
comprehensive income | - | (2,529 | ) | (2,529 | ) | ||||||||
Net current-period other | |||||||||||||
comprehensive income | (130 | ) | 10,300 | 10,170 | |||||||||
Ending balance | $ | 1,271 | $ | 59,389 | $ | 60,660 |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Details) | 6 Months Ended |
Jun. 30, 2014 | |
Summary of Significant Accounting Policies [Abstract] | ' |
Percentage of decline on cost of securities treated as other-than-temporary impairment (in hundredths) | 20.00% |
Period of decline on the cost of equity securities that will be considered other-than-temporary impairment | '6 months |
Investments_Details
Investments (Details) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 |
Security | Security | Security | |||
Agreement | Agreement | ||||
Available-for-sale Debt Securities, Amortized Cost Basis [Abstract] | ' | ' | ' | ' | ' |
Cost or amortized cost | $426,178 | ' | $426,178 | ' | ' |
Available-for-sale Securities, Fair Value to Amortized Cost Basis [Abstract] | ' | ' | ' | ' | ' |
Applicable federal income taxes | -31,979 | ' | ' | ' | -26,432 |
Net unrealized gains - net of tax | 59,389 | ' | ' | ' | 49,089 |
Available-for-sale securities continuous unrealized loss position [Abstract] | ' | ' | ' | ' | ' |
Number of Securities, total | 356 | ' | 356 | ' | 516 |
Available-for-sale securities continuous unrealized loss position, Fair Value [Abstract] | ' | ' | ' | ' | ' |
Fair value, total | 96,053 | ' | 96,053 | ' | 145,056 |
Available-for-sale securities continuous unrealized loss position, aggregate losses [Abstract] | ' | ' | ' | ' | ' |
Gross unrealized loss, total | ' | ' | -3,128 | ' | -4,584 |
Available-for-sale securities debt maturities fair value [Abstract] | ' | ' | ' | ' | ' |
One year or less, Fair Value | 124,351 | ' | 124,351 | ' | ' |
Excess of one year to five years, Fair Value | 165,938 | ' | 165,938 | ' | ' |
Excess of five years to ten years, Fair Value | 62,049 | ' | 62,049 | ' | ' |
Excess of ten years, Fair Value | 8,076 | ' | 8,076 | ' | ' |
Contractual maturities, Fair Value | 360,414 | ' | 360,414 | ' | ' |
Asset-backed securities, Fair Value | 69,046 | ' | 69,046 | ' | ' |
Total, Fair Value | 429,460 | ' | 429,460 | ' | ' |
Available-for-sale securities debt maturities amortized cost basis [Abstract] | ' | ' | ' | ' | ' |
One year or less, Amortized Cost Basis | 124,042 | ' | 124,042 | ' | ' |
Excess of one year to five years, Amortized Cost Basis | 165,905 | ' | 165,905 | ' | ' |
Excess of five years to ten years, Amortized Cost Basis | 60,694 | ' | 60,694 | ' | ' |
Excess of ten years, Amortized Cost Basis | 7,347 | ' | 7,347 | ' | ' |
Contractual maturities, Amortized Cost Basis | 357,988 | ' | 357,988 | ' | ' |
Asset-backed securities, Amortized Cost Basis | 68,190 | ' | 68,190 | ' | ' |
Cost or amortized cost | 426,178 | ' | 426,178 | ' | ' |
Available-for-sale Securities, Gross Realized Gain (Loss) [Abstract] | ' | ' | ' | ' | ' |
Limited partnerships - net gain (loss) | 5,200 | -1,275 | 8,268 | 2,438 | ' |
Net realized gains on investments | 8,089 | 719 | 12,159 | 15,066 | ' |
Available for sale securities gain loss activity [Abstract] | ' | ' | ' | ' | ' |
Realized net gains on the disposal of securities | 2,419 | 1,554 | 3,614 | 10,798 | ' |
Mark-to-market adjustment | 469 | 195 | 269 | 405 | ' |
Equity in gains of limited partnership investments - realized and unrealized | 5,200 | -1,275 | 8,268 | 2,438 | ' |
Write-downs based upon objective criteria | 0 | -68 | -105 | -74 | ' |
Recovery of prior write-downs upon sale or disposal | 1 | 313 | 113 | 1,499 | ' |
Net realized gains on investments | 8,089 | 719 | 12,159 | 15,066 | ' |
Net unrealized gain (loss) on investments | 1,649 | ' | 5,507 | ' | ' |
Net unrealized gains in limited partnership | ' | ' | 12,971 | ' | ' |
Undistributed earnings of limited partnership, net of taxes | 29,768 | ' | 29,768 | ' | ' |
Committed funds for bridge loans | 64,750 | ' | 64,750 | ' | ' |
Number of bridge loan agreements | 7 | ' | 7 | ' | ' |
U.S. government obligations [Member] | ' | ' | ' | ' | ' |
Available-for-sale Debt Securities, Amortized Cost Basis [Abstract] | ' | ' | ' | ' | ' |
Fair value | 119,517 | ' | 119,517 | ' | 113,389 |
Cost or amortized cost | 119,356 | ' | 119,356 | ' | 113,348 |
Gross unrealized gains | 176 | ' | 176 | ' | 81 |
Gross unrealized losses | -15 | ' | -15 | ' | -40 |
Net unrealized gains (losses) | 161 | ' | 161 | ' | 41 |
Available-for-sale securities debt maturities amortized cost basis [Abstract] | ' | ' | ' | ' | ' |
Cost or amortized cost | 119,356 | ' | 119,356 | ' | 113,348 |
Residential mortgage-backed securities [Member] | ' | ' | ' | ' | ' |
Available-for-sale Debt Securities, Amortized Cost Basis [Abstract] | ' | ' | ' | ' | ' |
Fair value | 7,935 | ' | 7,935 | ' | 13,252 |
Cost or amortized cost | 7,574 | ' | 7,574 | ' | 12,058 |
Gross unrealized gains | 424 | ' | 424 | ' | 1,334 |
Gross unrealized losses | -63 | ' | -63 | ' | -140 |
Net unrealized gains (losses) | 361 | ' | 361 | ' | 1,194 |
Available-for-sale securities debt maturities amortized cost basis [Abstract] | ' | ' | ' | ' | ' |
Cost or amortized cost | 7,574 | ' | 7,574 | ' | 12,058 |
Commercial mortgage-backed securities [Member] | ' | ' | ' | ' | ' |
Available-for-sale Debt Securities, Amortized Cost Basis [Abstract] | ' | ' | ' | ' | ' |
Fair value | 26,618 | ' | 26,618 | ' | 28,565 |
Cost or amortized cost | 25,878 | ' | 25,878 | ' | 28,406 |
Gross unrealized gains | 815 | ' | 815 | ' | 308 |
Gross unrealized losses | -75 | ' | -75 | ' | -149 |
Net unrealized gains (losses) | 740 | ' | 740 | ' | 159 |
Available-for-sale securities debt maturities amortized cost basis [Abstract] | ' | ' | ' | ' | ' |
Cost or amortized cost | 25,878 | ' | 25,878 | ' | 28,406 |
States and municipal obligations [Member] | ' | ' | ' | ' | ' |
Available-for-sale Debt Securities, Amortized Cost Basis [Abstract] | ' | ' | ' | ' | ' |
Fair value | 114,212 | ' | 114,212 | ' | 115,250 |
Cost or amortized cost | 113,481 | ' | 113,481 | ' | 115,278 |
Gross unrealized gains | 861 | ' | 861 | ' | 407 |
Gross unrealized losses | -130 | ' | -130 | ' | -435 |
Net unrealized gains (losses) | 731 | ' | 731 | ' | -28 |
Available-for-sale securities debt maturities amortized cost basis [Abstract] | ' | ' | ' | ' | ' |
Cost or amortized cost | 113,481 | ' | 113,481 | ' | 115,278 |
Corporate securities [Member] | ' | ' | ' | ' | ' |
Available-for-sale Debt Securities, Amortized Cost Basis [Abstract] | ' | ' | ' | ' | ' |
Fair value | 135,435 | ' | 135,435 | ' | 137,215 |
Cost or amortized cost | 134,469 | ' | 134,469 | ' | 136,991 |
Gross unrealized gains | 3,426 | ' | 3,426 | ' | 3,207 |
Gross unrealized losses | -2,460 | ' | -2,460 | ' | -2,983 |
Net unrealized gains (losses) | 966 | ' | 966 | ' | 224 |
Available-for-sale securities debt maturities amortized cost basis [Abstract] | ' | ' | ' | ' | ' |
Cost or amortized cost | 134,469 | ' | 134,469 | ' | 136,991 |
Foreign government obligations [Member] | ' | ' | ' | ' | ' |
Available-for-sale Debt Securities, Amortized Cost Basis [Abstract] | ' | ' | ' | ' | ' |
Fair value | 25,743 | ' | 25,743 | ' | 23,879 |
Cost or amortized cost | 25,420 | ' | 25,420 | ' | 23,689 |
Gross unrealized gains | 471 | ' | 471 | ' | 588 |
Gross unrealized losses | -148 | ' | -148 | ' | -398 |
Net unrealized gains (losses) | 323 | ' | 323 | ' | 190 |
Available-for-sale securities debt maturities amortized cost basis [Abstract] | ' | ' | ' | ' | ' |
Cost or amortized cost | 25,420 | ' | 25,420 | ' | 23,689 |
Total fixed maturities [Member] | ' | ' | ' | ' | ' |
Available-for-sale Debt Securities, Amortized Cost Basis [Abstract] | ' | ' | ' | ' | ' |
Fair value | 429,460 | ' | 429,460 | ' | 431,550 |
Cost or amortized cost | 426,178 | ' | 426,178 | ' | 429,770 |
Gross unrealized gains | 6,173 | ' | 6,173 | ' | 5,925 |
Gross unrealized losses | -2,891 | ' | -2,891 | ' | -4,145 |
Net unrealized gains (losses) | 3,282 | ' | 3,282 | ' | 1,780 |
Available-for-sale securities continuous unrealized loss position [Abstract] | ' | ' | ' | ' | ' |
Number of Securities Less than 12 months | 256 | ' | 256 | ' | 451 |
Number of Securities More than 12 months | 86 | ' | 86 | ' | 53 |
Number of Securities, total | 342 | ' | 342 | ' | 504 |
Available-for-sale securities continuous unrealized loss position, Fair Value [Abstract] | ' | ' | ' | ' | ' |
Fair value, 12 months or less | 61,528 | ' | 61,528 | ' | 123,145 |
Fair value, 12 months or longer | 30,389 | ' | 30,389 | ' | 18,249 |
Fair value, total | 91,917 | ' | 91,917 | ' | 141,394 |
Available-for-sale securities continuous unrealized loss position, aggregate losses [Abstract] | ' | ' | ' | ' | ' |
Gross unrealized loss, less than 12 months | ' | ' | -1,827 | ' | -3,105 |
Gross unrealized loss, 12 months or longer | ' | ' | -1,064 | ' | -1,040 |
Gross unrealized loss, total | ' | ' | -2,891 | ' | -4,145 |
Available-for-sale securities debt maturities amortized cost basis [Abstract] | ' | ' | ' | ' | ' |
Cost or amortized cost | 426,178 | ' | 426,178 | ' | 429,770 |
Available-for-sale Securities, Gross Realized Gain (Loss) [Abstract] | ' | ' | ' | ' | ' |
Gross gains | 2,762 | 2,233 | 4,601 | 3,652 | ' |
Gross losses | -926 | -883 | -2,152 | -2,220 | ' |
Net realized gains | 1,836 | 1,350 | 2,449 | 1,432 | ' |
Financial institutions [Member] | ' | ' | ' | ' | ' |
Available-for-sale Equity Securities, Amortized Cost Basis [Abstract] | ' | ' | ' | ' | ' |
Fair value | 20,456 | ' | 20,456 | ' | 18,850 |
Cost or amortized cost | 8,565 | ' | 8,565 | ' | 7,780 |
Gross unrealized gains | 11,907 | ' | 11,907 | ' | 11,171 |
Gross unrealized losses | -16 | ' | -16 | ' | -101 |
Net unrealized gains (losses) | 11,891 | ' | 11,891 | ' | 11,070 |
Industrial & miscellaneous [Member] | ' | ' | ' | ' | ' |
Available-for-sale Equity Securities, Amortized Cost Basis [Abstract] | ' | ' | ' | ' | ' |
Fair value | 140,470 | ' | 140,470 | ' | 126,978 |
Cost or amortized cost | 64,275 | ' | 64,275 | ' | 64,307 |
Gross unrealized gains | 76,416 | ' | 76,416 | ' | 63,009 |
Gross unrealized losses | -221 | ' | -221 | ' | -338 |
Net unrealized gains (losses) | 76,195 | ' | 76,195 | ' | 62,671 |
Total equity securities [Member] | ' | ' | ' | ' | ' |
Available-for-sale Equity Securities, Amortized Cost Basis [Abstract] | ' | ' | ' | ' | ' |
Fair value | 160,926 | ' | 160,926 | ' | 145,828 |
Cost or amortized cost | 72,840 | ' | 72,840 | ' | 72,087 |
Gross unrealized gains | 88,323 | ' | 88,323 | ' | 74,180 |
Gross unrealized losses | -237 | ' | -237 | ' | -439 |
Net unrealized gains (losses) | 88,086 | ' | 88,086 | ' | 73,741 |
Available-for-sale securities continuous unrealized loss position [Abstract] | ' | ' | ' | ' | ' |
Number of Securities Less than 12 months | 10 | ' | 10 | ' | 10 |
Number of Securities More than 12 months | 4 | ' | 4 | ' | 2 |
Number of Securities, total | 14 | ' | 14 | ' | 12 |
Available-for-sale securities continuous unrealized loss position, Fair Value [Abstract] | ' | ' | ' | ' | ' |
Fair value, 12 months or less | 3,510 | ' | 3,510 | ' | 1,682 |
Fair value, 12 months or longer | 626 | ' | 626 | ' | 1,980 |
Fair value, total | 4,136 | ' | 4,136 | ' | 3,662 |
Available-for-sale securities continuous unrealized loss position, aggregate losses [Abstract] | ' | ' | ' | ' | ' |
Gross unrealized loss, less than 12 months | ' | ' | -185 | ' | -204 |
Gross unrealized loss, 12 months or longer | ' | ' | -52 | ' | -235 |
Gross unrealized loss, total | ' | ' | -237 | ' | -439 |
Available-for-sale Securities, Gross Realized Gain (Loss) [Abstract] | ' | ' | ' | ' | ' |
Gross gains | 1,412 | 893 | 2,153 | 12,605 | ' |
Gross losses | -359 | -249 | -711 | -1,409 | ' |
Net realized gains | 1,053 | 644 | 1,442 | 11,196 | ' |
Total available-for-sale securities [Member] | ' | ' | ' | ' | ' |
Available-for-sale Securities, Fair Value to Amortized Cost Basis [Abstract] | ' | ' | ' | ' | ' |
Fair value | 590,386 | ' | 590,386 | ' | 577,378 |
Cost or amortized cost | 499,018 | ' | 499,018 | ' | 501,857 |
Gross unrealized gains | 94,496 | ' | 94,496 | ' | 80,105 |
Gross unrealized losses | -3,128 | ' | -3,128 | ' | -4,584 |
Net unrealized gains (losses) | $91,368 | ' | $91,368 | ' | $75,521 |
Reinsurance_Details
Reinsurance (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Reinsurance [Abstract] | ' | ' | ' | ' |
Premiums ceded to reinsurers | $31,111 | $29,398 | $63,237 | $56,411 |
Losses and loss expenses ceded to reinsurers | 25,145 | 19,397 | 43,601 | 41,531 |
Commissions from reinsurers | $5,895 | $5,214 | $11,575 | $9,251 |
Reportable_Segments_Details
Reportable Segments (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Segment | ||||
Reportable Segments [Abstract] | ' | ' | ' | ' |
Number of reportable segments | ' | ' | 2 | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net Premiums Earned | $62,905 | $61,775 | $126,747 | $122,873 |
Reconciliation from segment totals to consolidated [Abstract] | ' | ' | ' | ' |
Income before federal income taxes | 14,037 | 7,262 | 23,476 | 29,941 |
Operating Segments [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Direct and Assumed Premium Written | 95,098 | 92,830 | 189,852 | 176,721 |
Net Premiums Earned | 62,905 | 61,775 | 126,747 | 122,873 |
Segment Profit | 8,078 | 8,315 | 15,309 | 18,320 |
Reconciliation from segment totals to consolidated [Abstract] | ' | ' | ' | ' |
Segment profit | 8,078 | 8,315 | 15,309 | 18,320 |
Operating Segments [Member] | Property and Casualty Insurance [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Direct and Assumed Premium Written | 85,826 | 80,756 | 168,750 | 150,945 |
Net Premiums Earned | 55,057 | 49,803 | 106,516 | 97,663 |
Segment Profit | 8,864 | 5,405 | 14,207 | 10,641 |
Reconciliation from segment totals to consolidated [Abstract] | ' | ' | ' | ' |
Segment profit | 8,864 | 5,405 | 14,207 | 10,641 |
Operating Segments [Member] | Reinsurance [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Direct and Assumed Premium Written | 9,272 | 12,074 | 21,102 | 25,776 |
Net Premiums Earned | 7,848 | 11,972 | 20,231 | 25,210 |
Segment Profit | -786 | 2,910 | 1,102 | 7,679 |
Reconciliation from segment totals to consolidated [Abstract] | ' | ' | ' | ' |
Segment profit | -786 | 2,910 | 1,102 | 7,679 |
Segment Reconciling Items [Member] | ' | ' | ' | ' |
Reconciliation from segment totals to consolidated [Abstract] | ' | ' | ' | ' |
Net investment income | 2,090 | 1,985 | 4,383 | 4,395 |
Net gains on investments | 8,089 | 719 | 12,159 | 15,066 |
Corporate expenses | ($4,220) | ($3,757) | ($8,375) | ($7,840) |
Debt_Details
Debt (Details) (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Dec. 31, 2013 |
Debt [Abstract] | ' | ' |
Revolving line of credit limit | $30,000 | ' |
Line of credit maturity date | 23-Sep-14 | ' |
Period of fixed interest on line of credit at company's options | '1 year | ' |
Outstanding drawings on line of credit | 20,000 | 10,000 |
Effective interest rate (in hundredths) | 1.55% | ' |
Remaining unused amount under line of credit | $10,000 | ' |
Fair_Value_Details
Fair Value (Details) (Recurring [Member], USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fixed maturities: [Abstract] | ' | ' |
U.S. government obligations | $119,517 | $113,389 |
Residential mortgage-backed securities | 7,935 | 13,252 |
Commercial mortgage-backed securities | 26,618 | 28,565 |
State and municipal obligations | 114,212 | 115,250 |
Corporate securities | 132,496 | 134,635 |
Options embedded in convertible securities | 2,939 | 2,580 |
Foreign government obligations | 25,743 | 23,879 |
Total fixed maturities | 429,460 | 431,550 |
Equity Securities [Abstract] | ' | ' |
Financial institutions | 20,456 | 18,850 |
Industrial & miscellaneous | 140,470 | 126,978 |
Total equity securities | 160,926 | 145,828 |
Short term | 3,162 | 4,891 |
Cash equivalents | 70,482 | 52,002 |
Total fair value | 664,030 | 634,271 |
Level 1 [Member] | ' | ' |
Fixed maturities: [Abstract] | ' | ' |
U.S. government obligations | 119,517 | 113,389 |
Residential mortgage-backed securities | 0 | 0 |
Commercial mortgage-backed securities | 0 | 0 |
State and municipal obligations | 0 | 0 |
Corporate securities | 0 | 0 |
Options embedded in convertible securities | 0 | 0 |
Foreign government obligations | 0 | 0 |
Total fixed maturities | 119,517 | 113,389 |
Equity Securities [Abstract] | ' | ' |
Financial institutions | 20,456 | 18,850 |
Industrial & miscellaneous | 140,470 | 126,978 |
Total equity securities | 160,926 | 145,828 |
Short term | 3,162 | 4,891 |
Cash equivalents | 0 | 0 |
Total fair value | 283,605 | 264,108 |
Level 2 [Member] | ' | ' |
Fixed maturities: [Abstract] | ' | ' |
U.S. government obligations | 0 | 0 |
Residential mortgage-backed securities | 7,935 | 13,252 |
Commercial mortgage-backed securities | 26,618 | 28,565 |
State and municipal obligations | 114,212 | 115,250 |
Corporate securities | 132,496 | 134,635 |
Options embedded in convertible securities | 2,939 | 2,580 |
Foreign government obligations | 25,743 | 23,879 |
Total fixed maturities | 309,943 | 318,161 |
Equity Securities [Abstract] | ' | ' |
Financial institutions | 0 | 0 |
Industrial & miscellaneous | 0 | 0 |
Total equity securities | 0 | 0 |
Short term | 0 | 0 |
Cash equivalents | 70,482 | 52,002 |
Total fair value | 380,425 | 370,163 |
Level 3 [Member] | ' | ' |
Fixed maturities: [Abstract] | ' | ' |
U.S. government obligations | 0 | 0 |
Residential mortgage-backed securities | 0 | 0 |
Commercial mortgage-backed securities | 0 | 0 |
State and municipal obligations | 0 | 0 |
Corporate securities | 0 | 0 |
Options embedded in convertible securities | 0 | 0 |
Foreign government obligations | 0 | 0 |
Total fixed maturities | 0 | 0 |
Equity Securities [Abstract] | ' | ' |
Financial institutions | 0 | 0 |
Industrial & miscellaneous | 0 | 0 |
Total equity securities | 0 | 0 |
Short term | 0 | 0 |
Cash equivalents | 0 | 0 |
Total fair value | $0 | $0 |
Fair_Value_Unobservable_Input_
Fair Value, Unobservable Input Reconciliation (Details) (USD $) | 6 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Dec. 31, 2013 |
Fair value assets measured on recurring basis unobservable input reconciliation calculation [Roll Forward] | ' | ' |
Beginning of period balance | $0 | $11,682 |
Total gains or losses (realized or unrealized) included in income | 0 | 1,017 |
Purchases | 0 | 1,258 |
Settlements | 0 | -6,698 |
Transfers out of Level 3 | 0 | -7,259 |
End of period balance | $0 | $0 |
Fair_Value_Balance_Sheet_Group
Fair Value, Balance Sheet Grouping (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Carrying Value [Member] | ' | ' |
Assets [Abstract] | ' | ' |
Limited partnerships | $78,892 | $68,988 |
Liabilities [Abstract] | ' | ' |
Short-term borrowings | 20,000 | 10,000 |
Fair Value [Member] | ' | ' |
Assets [Abstract] | ' | ' |
Limited partnerships | 78,892 | 68,988 |
Liabilities [Abstract] | ' | ' |
Short-term borrowings | 20,000 | 10,000 |
Fair Value [Member] | Level 1 [Member] | ' | ' |
Assets [Abstract] | ' | ' |
Limited partnerships | 0 | 0 |
Liabilities [Abstract] | ' | ' |
Short-term borrowings | 0 | 0 |
Fair Value [Member] | Level 2 [Member] | ' | ' |
Assets [Abstract] | ' | ' |
Limited partnerships | 0 | 0 |
Liabilities [Abstract] | ' | ' |
Short-term borrowings | 20,000 | 10,000 |
Fair Value [Member] | Level 3 [Member] | ' | ' |
Assets [Abstract] | ' | ' |
Limited partnerships | 78,892 | 68,988 |
Liabilities [Abstract] | ' | ' |
Short-term borrowings | $0 | $0 |
Restricted_Stock_Details
Restricted Stock (Details) (USD $) | 1 Months Ended | 6 Months Ended | 12 Months Ended | 0 Months Ended | |||
In Thousands, except Share data, unless otherwise specified | 31-May-14 | 31-May-13 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Feb. 04, 2014 |
Restricted Stock Units (RSUs) [Member] | Restricted Stock Units (RSUs) [Member] | Restricted Stock Units (RSUs) [Member] | Restricted Stock Units (RSUs) [Member] | ||||
Class B [Member] | Class B [Member] | Class B [Member] | |||||
Outside Director [Member] | Outside Director [Member] | Executives [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Shares distribution period from grant date | ' | ' | '1 year | ' | ' | ' | ' |
Total value of shares issued | ' | ' | ' | ' | $440 | $440 | $1,088 |
Shares issued (in shares) | ' | ' | ' | ' | ' | ' | 45,678 |
Value of each share issued (in dollars per share) | $25.53 | $24.30 | ' | ' | ' | ' | $23.81 |
Summary of stock Issuances [Abstract] | ' | ' | ' | ' | ' | ' | ' |
Shares granted (in shares) | 17,237 | 18,106 | ' | ' | ' | ' | ' |
Vesting Date | 8-May-15 | 7-May-14 | ' | ' | ' | ' | ' |
Service Period | '7/1/2014 - 6/30/2015 | '7/1/2013 - 6/30/2014 | ' | ' | ' | ' | ' |
Period restricted stocks will vest ratably from date of grant | ' | ' | ' | '3 years | ' | ' | ' |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Changes in Accumulated Other Comprehensive Income by Component [Roll Forward] | ' | ' | ' | ' |
Total accumulated other comprehensive income, beginning balance | ' | ' | $50,490 | ' |
Other comprehensive income before reclassifications | ' | ' | 12,699 | ' |
Amounts reclassified from accumulated other comprehensive income | ' | ' | -2,529 | ' |
Other comprehensive income (loss) | 5,488 | -2,614 | 10,170 | -1,910 |
Total accumulated other comprehensive income, ending balance | 60,660 | ' | 60,660 | ' |
Foreign Currency [Member] | ' | ' | ' | ' |
Changes in Accumulated Other Comprehensive Income by Component [Roll Forward] | ' | ' | ' | ' |
Total accumulated other comprehensive income, beginning balance | ' | ' | 1,401 | ' |
Other comprehensive income before reclassifications | ' | ' | -130 | ' |
Amounts reclassified from accumulated other comprehensive income | ' | ' | 0 | ' |
Other comprehensive income (loss) | ' | ' | -130 | ' |
Total accumulated other comprehensive income, ending balance | 1,271 | ' | 1,271 | ' |
Unrealized holding gains on available-for-sale securities [Member] | ' | ' | ' | ' |
Changes in Accumulated Other Comprehensive Income by Component [Roll Forward] | ' | ' | ' | ' |
Total accumulated other comprehensive income, beginning balance | ' | ' | 49,089 | ' |
Other comprehensive income before reclassifications | ' | ' | 12,829 | ' |
Amounts reclassified from accumulated other comprehensive income | ' | ' | -2,529 | ' |
Other comprehensive income (loss) | ' | ' | 10,300 | ' |
Total accumulated other comprehensive income, ending balance | $59,389 | ' | $59,389 | ' |