Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2015 | Nov. 01, 2015 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | BALDWIN & LYONS INC | |
Entity Central Index Key | 9,346 | |
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] | ||
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2015 | |
Class A (voting) [Member] | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 2,623,109 | |
Class B (nonvoting) [Member] | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 12,397,628 |
Unaudited Consolidated Balance
Unaudited Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Investments: | ||
Fixed maturities | $ 442,619 | $ 451,809 |
Equity securities | 142,514 | 162,107 |
Limited partnerships | 74,702 | 81,230 |
Short-term | 2,220 | 2,966 |
Total Investments | 662,055 | 698,112 |
Cash and cash equivalents | 69,650 | 64,632 |
Accounts receivable | 73,045 | 98,144 |
Reinsurance recoverable | 223,184 | 220,221 |
Other assets | 65,622 | 61,447 |
Current federal income taxes | 0 | 1,691 |
Total Assets | 1,093,556 | 1,144,247 |
Liabilities and shareholders' equity | ||
Reserves for losses and loss expenses | 516,929 | 506,102 |
Reserves for unearned premiums | 27,034 | 35,019 |
Short-term borrowings | 20,000 | 20,000 |
Accounts payable and accrued expenses | 124,891 | 163,657 |
Current federal income taxes | 2,213 | 0 |
Deferred federal income taxes | 9,604 | 19,973 |
Total Liabilities | 700,671 | 744,751 |
Shareholders' equity: | ||
Additional paid-in capital | 52,826 | 51,854 |
Unrealized net gains on investments | 36,883 | 51,840 |
Foreign exchange adjustment | (712) | 390 |
Retained earnings | 303,247 | 294,773 |
Shareholders' equity | 392,885 | 399,496 |
Total liabilities and shareholders' equity | 1,093,556 | 1,144,247 |
Class A Voting [Member] | ||
Shareholders' equity: | ||
Common stock | 112 | 112 |
Class B Non-voting [Member] | ||
Shareholders' equity: | ||
Common stock | $ 529 | $ 527 |
Unaudited Consolidated Balance3
Unaudited Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2015 | Dec. 31, 2014 |
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) | 12,397,628 | 12,356,389 |
Unaudited Consolidated Statemen
Unaudited Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Revenues | ||||
Net premiums earned | $ 65,445 | $ 65,947 | $ 197,340 | $ 192,694 |
Net investment income | 3,014 | 2,073 | 8,727 | 6,456 |
Commissions and other income | 1,173 | 1,800 | 3,970 | 4,887 |
Net realized gains on investments, excluding impairment losses | 2,310 | 1,099 | 5,994 | 13,363 |
Total other-than-temporary impairment losses on investments | (4,396) | (441) | (5,503) | (546) |
Net realized gains (losses) on investments | (2,086) | 658 | 491 | 12,817 |
Total revenue | 67,546 | 70,478 | 210,528 | 216,854 |
Expenses | ||||
Losses and loss expenses incurred | 35,212 | 38,693 | 113,890 | 118,264 |
Other operating expenses | 20,724 | 23,237 | 67,307 | 66,566 |
Total expenses | 55,936 | 61,930 | 181,197 | 184,830 |
Income before federal income taxes | 11,610 | 8,548 | 29,331 | 32,024 |
Federal income taxes | 3,830 | 2,778 | 9,590 | 10,553 |
Net income | $ 7,780 | $ 5,770 | $ 19,741 | $ 21,471 |
Per share data: | ||||
Basic and diluted earnings (in dollars per share) | $ 0.52 | $ 0.39 | $ 1.31 | $ 1.43 |
Dividends paid to shareholders (in dollars per share) | $ 0.25 | $ 0.25 | $ 0.75 | $ 0.75 |
Reconciliation of shares outstanding: | ||||
Average shares outstanding - basic (in shares) | 15,015 | 14,971 | 15,009 | 14,962 |
Dilutive effect of share equivalents (in shares) | 3 | 2 | 10 | 12 |
Average shares outstanding - diluted (in shares) | 15,018 | 14,973 | 15,019 | 14,974 |
Unaudited Consolidated Stateme5
Unaudited Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Unaudited Consolidated Statements of Comprehensive Income (Loss) [Abstract] | ||||
Net income | $ 7,780 | $ 5,770 | $ 19,741 | $ 21,471 |
Unrealized net gains (losses) on securities: | ||||
Unrealized net gains (losses) arising during the period | (13,192) | (3,472) | (13,299) | 9,358 |
Less: reclassification adjustment for net gains (losses) included in net income | 2,739 | 1,118 | 1,658 | 3,648 |
Change in unrealized gains on investments | (15,931) | (4,590) | (14,957) | 5,710 |
Foreign currency translation adjustments | (429) | (705) | (1,102) | (835) |
Other comprehensive income (loss) | (16,360) | (5,295) | (16,059) | 4,875 |
Comprehensive income (loss) | $ (8,580) | $ 475 | $ 3,682 | $ 26,346 |
Unaudited Consolidated Stateme6
Unaudited Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Unaudited Consolidated Statements of Cash Flows [Abstract] | ||
Net cash provided by operating activities | $ 30,806 | $ 31,110 |
Investing activities: | ||
Purchases of available-for-sale investments | (275,591) | (201,523) |
Purchases of limited partnership interests | 0 | (4,212) |
Proceeds from sales or maturities of available-for-sale investments | 262,707 | 204,979 |
Net sales of short-term investments | 746 | 1,726 |
Other investing activities | (1,281) | (9,744) |
Net cash used in investing activities | (13,419) | (8,774) |
Financing activities: | ||
Dividends paid to shareholders | (11,267) | (11,222) |
Drawings on line of credit | 0 | 10,000 |
Net cash used in financing activities | (11,267) | (1,222) |
Effect of foreign exchange rates on cash and cash equivalents | (1,102) | (835) |
Increase in cash and cash equivalents | 5,018 | 20,279 |
Cash and cash equivalents at beginning of period | 64,632 | 59,297 |
Cash and cash equivalents at end of period | $ 69,650 | $ 79,576 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2015 | |
Summary of Significant Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | (1) Summary of Significant Accounting Policies Basis of Presentation: Investments 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) on investments. 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 income. 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 income 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. Recent Accounting Pronouncements |
Investments
Investments | 9 Months Ended |
Sep. 30, 2015 | |
Investments [Abstract] | |
Investments | (2) Investments: The following is a summary of available-for-sale securities at September 30, 2015 and December 31, 2014: Net Cost or Gross Gross Unrealized Fair Amortized Unrealized Unrealized Gains Value Cost Gains Losses (Losses) September 30, 2015 Fixed maturities U.S. government obligations $ 110,095 $ 109,746 $ 355 $ (6 ) $ 349 Residential mortgage-backed securities 5,116 4,886 244 (14 ) 230 Commercial mortgage-backed securities 29,601 29,735 374 (508 ) (134 ) States and municipal obligations 114,304 113,700 946 (342 ) 604 Corporate securities 162,294 163,733 2,350 (3,789 ) (1,439 ) Foreign government obligations 21,209 22,450 286 (1,527 ) (1,241 ) Total fixed maturities 442,619 444,250 4,555 (6,186 ) (1,631 ) Equity securities: Financial institutions 20,161 9,356 10,826 (21 ) 10,805 Industrial & miscellaneous 122,353 74,784 54,698 (7,129 ) 47,569 Total equity securities 142,514 84,140 65,524 (7,150 ) 58,374 Total $ 585,133 $ 528,390 $ 70,079 $ (13,336 ) 56,743 Applicable federal income taxes (19,860 ) Net unrealized gains - net of tax $ 36,883 December 31, 2014 Fixed maturities U.S. government obligations $ 101,094 $ 101,058 $ 108 $ (72 ) $ 36 Residential mortgage-backed securities 6,066 5,830 273 (37 ) 236 Commercial mortgage-backed securities 36,440 36,210 630 (400 ) 230 State and municipal obligations 113,777 113,133 784 (140 ) 644 Corporate securities 166,966 170,822 2,005 (5,861 ) (3,856 ) Foreign government obligations 27,466 28,332 114 (980 ) (866 ) Total fixed maturities 451,809 455,385 3,914 (7,490 ) (3,576 ) Equity securities: Financial institutions 25,343 10,100 15,303 (60 ) 15,243 Industrial & miscellaneous 136,764 68,678 70,260 (2,174 ) 68,086 Total equity securities 162,107 78,778 85,563 (2,234 ) 83,329 Total $ 613,916 $ 534,163 $ 89,477 $ (9,724 ) 79,753 Applicable federal income taxes (27,913 ) Net unrealized gains - net of tax $ 51,840 The following table summarizes, for fixed maturity and equity security investments in an unrealized loss position at September 30, 2015 and December 31, 2014, respectively, the aggregate fair value and gross unrealized loss categorized by the duration those securities have been continuously in an unrealized loss position. September 30, 2015 December 31, 2014 Number of Securities Fair Value Gross Unrealized Loss Number of Securities Fair Value Gross Unrealized Loss Fixed maturity securities: 12 months or less 209 $ 98,604 $ (4,939 ) 591 $ 176,756 $ (6,083 ) Greater than 12 months 67 21,094 (1,247 ) 140 27,667 (1,407 ) Total fixed maturities 276 119,698 (6,186 ) 731 204,423 (7,490 ) Equity securities: 12 months or less 61 35,888 (6,181 ) 33 13,538 (2,170 ) Greater than 12 months 12 2,876 (969 ) 3 686 (64 ) Total equity securities 73 38,764 (7,150 ) 36 14,224 (2,234 ) Total fixed maturity and equity securities 349 $ 158,462 $ (13,336 ) 767 $ 218,647 $ (9,724 ) The fair value and the cost or amortized costs of fixed maturity investments at September 30, 2015, 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 $ 74,675 $ 75,062 Excess of one year to five years 244,552 245,370 Excess of five years to ten years 36,252 36,889 Excess of ten years 3,298 3,076 Contractual maturities 358,777 360,397 Asset-backed securities 83,842 83,853 Total $ 442,619 $ 444,250 Following is a summary of the components of net realized gains (losses) on investments for the periods presented in the accompanying consolidated statements of income. Three Months Ended Nine Months Ended September 30 September 30 2015 2014 2015 2014 Fixed maturities: Gross gains $ 1,294 $ 798 $ 3,426 $ 5,399 Gross losses (5,087 ) (1,259 ) (8,876 ) (3,411 ) Net realized gains (losses) (3,793 ) (461 ) (5,450 ) 1,988 Equity securities: Gross gains 10,320 2,529 12,299 4,682 Gross losses (2,312 ) (346 ) (4,297 ) (1,057 ) Net realized gains 8,008 2,183 8,002 3,625 Limited partnerships - net gain (loss) (6,301 ) (1,064 ) (2,061 ) 7,204 Totals $ (2,086 ) $ 658 $ 491 $ 12,817 Net realized gains activity for investments, as shown in the previous table, are further detailed as follows: Three Months Ended Nine Months Ended September 30 September 30 2015 2014 2015 2014 Realized net gains on the disposal of securities $ 7,957 $ 2,223 $ 7,544 $ 5,837 Mark-to-market adjustment (300 ) (118 ) (692 ) 151 Equity in gains (losses) of limited partnership investments - realized and unrealized (6,301 ) (1,064 ) (2,061 ) 7,204 Impairment: Write-downs based upon objective criteria (4,396 ) (441 ) (5,503 ) (546 ) Recovery of prior write-downs upon sale or disposal 954 58 1,203 171 Totals $ (2,086 ) $ 658 $ 491 $ 12,817 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 September 30, 2015 includes an estimated $9,335 and $8,280 of net unrealized losses respectively, reported to the Company as part of the underlying assets of the various limited partnerships. The value of limited partnerships at September 30, 2015 includes approximately $4,967 of accumulated net unrealized gains reported to the Company as part of the underlying assets of the various limited partnerships. Shareholders' equity at September 30, 2015 includes approximately $26,236, net of federal income taxes, of reported earnings which remain undistributed by limited partnerships. As of September 30, 2015, the Company had committed funds totaling $17,000 to two separate borrowers related to 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 | 9 Months Ended |
Sep. 30, 2015 | |
Reinsurance [Abstract] | |
Reinsurance | (3) Reinsurance: The following table summarizes the Company's transactions with reinsurers for the 2015 and 2014 comparative periods. 2015 2014 Quarter ended September 30: Premiums ceded to reinsurers $ 32,822 $ 28,711 Losses and loss expenses ceded to reinsurers 21,068 15,451 Commissions from reinsurers 6,668 5,850 Nine months ended September 30: Premiums ceded to reinsurers $ 95,397 $ 91,345 Losses and loss expenses ceded to reinsurers 59,306 54,473 Commissions from reinsurers 21,713 17,425 |
Reportable Segments
Reportable Segments | 9 Months Ended |
Sep. 30, 2015 | |
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 currently accepts professional liability cessions from other insurance companies. From 1992 until July 1, 2014, the Reinsurance segment accepted property cessions from other insurance companies and retrocessions from reinsurance companies, principally reinsuring against catastrophes. Final exposure to property catastrophe losses expired on June 30, 2015. 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. 2015 2014 Direct and Assumed Premium Written Net Premium Earned Segment Profit Direct and Assumed Premium Written Net Premium Earned Segment Profit (Loss) Three months ended September 30: Property and Casualty Insurance $ 92,584 $ 60,837 $ 14,513 $ 84,644 $ 57,097 $ 9,520 Reinsurance 3,368 4,608 86 9,947 8,850 (906 ) Totals $ 95,952 $ 65,445 $ 14,599 $ 94,591 $ 65,947 $ 8,614 Nine months ended September 30: Property and Casualty Insurance $ 272,260 $ 180,152 $ 31,195 $ 253,394 $ 163,613 $ 23,726 Reinsurance 13,467 17,188 1,099 31,049 29,081 196 Totals $ 285,727 $ 197,340 $ 32,294 $ 284,443 $ 192,694 $ 23,922 The following table reconciles reportable segment income to the Company's consolidated income before federal income taxes. Three Months Ended Nine Months Ended September 30 September 30 2015 2014 2015 2014 Profit: Segment profit $ 14,599 $ 8,614 $ 32,294 $ 23,922 Net investment income 3,014 2,073 8,727 6,456 Net realized gains (losses) on investments (2,086 ) 658 491 12,817 Corporate expenses and other (3,917 ) (2,797 ) (12,181 ) (11,171 ) Income before federal income taxes $ 11,610 $ 8,548 $ 29,331 $ 32,024 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 | 9 Months Ended |
Sep. 30, 2015 | |
Debt [Abstract] | |
Debt | (5) Debt The Company maintains a revolving line of credit with a $40,000 limit and an expiration date of September 23, 2018. 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 both September 30, 2015 and December 31, 2014. At September 30, 2015, the effective interest rate was 1.30%. The Company has $20,000 remaining unused under the line of credit at September 30, 2015. |
Taxes
Taxes | 9 Months Ended |
Sep. 30, 2015 | |
Taxes [Abstract] | |
Taxes | (6) Taxes: As of September 30, 2015, the Company's calendar years 2012 through 2014 remain subject to examination by the IRS. The effective federal income tax rate differs from the normal statutory rate primarily as a result of tax-exempt investment income. |
Fair Value
Fair Value | 9 Months Ended |
Sep. 30, 2015 | |
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 September 30, 2015: Description Total Level 1 Level 2 Level 3 Fixed maturities: U.S. government obligations $ 110,095 $ - $ 110,095 $ - Residential mortgage-backed securities 5,116 - 5,116 - Commercial mortgage-backed securities 29,601 - 29,131 470 State and municipal obligations 114,304 - 114,304 - Corporate securities 160,087 - 154,436 5,651 Options embedded in convertible securities 2,207 - 2,207 - Foreign government obligations 21,209 - 20,925 284 Total fixed maturities 442,619 - 436,214 6,405 Equity securities: Financial institutions 20,161 20,161 - - Industrial & miscellaneous 122,353 122,353 - - Total equity securities 142,514 142,514 - - Short-term 2,220 2,220 - - Cash equivalents 59,882 - 59,882 - $ 647,235 $ 144,734 $ 496,096 $ 6,405 As of December 31, 2014: Description Total Level 1 Level 2 Level 3 Fixed maturities: U.S. government obligations $ 101,094 $ - $ 101,094 $ - Residential mortgage-backed securities 6,066 - 6,066 - Commercial mortgage-backed securities 36,440 - 36,440 - State and municipal obligations 113,777 - 113,777 - Corporate securities 164,068 - 151,860 12,208 Options embedded in convertible securities 2,898 - 2,898 - Foreign government obligations 27,466 - 27,466 - Total fixed maturities 451,809 - 439,601 12,208 Equity securities: Financial institutions 25,343 25,343 - - Industrial & miscellaneous 136,764 136,764 - - Total equity securities 162,107 162,107 - - Short-term 2,966 2,966 - - Cash equivalents 59,309 - 59,309 - $ 676,191 $ 165,073 $ 498,910 $ 12,208 Level inputs, as defined by FASB Fair Value Measurements, are as follows: 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 Fixed maturities Equity securities 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 nine months ended September 30, 2015 and for the year ended December 31, 2014: 2015 2014 Beginning of period balance $ 12,208 $ - Total gains or losses (realized or unrealized) included in income 47 - Purchases 2,163 - Settlements (8,027 ) - Transfers into level 3 995 12,208 Transfers out of level 3 (981 ) - End of period balance $ 6,405 $ 12,208 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 nine months ended September 30, 2015 and 2014. 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 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 September 30, 2015 and December 31, 2014 are as follows: Carrying Fair Value Value Level 1 Level 2 Level 3 Total September 30, 2015 Assets: Limited partnerships $ 74,702 $ - $ - $ 74,702 $ 74,702 Liabilities: Short-term borrowings 20,000 - 20,000 - 20,000 December 31, 2014 Assets: Limited partnerships 81,230 - - 81,230 81,230 Liabilities: Short-term borrowings 20,000 - 20,000 - 20,000 |
Restricted Stock
Restricted Stock | 9 Months Ended |
Sep. 30, 2015 | |
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 and $480 for the 2014 and 2015 annual periods presented, respectively. The table below provides detail of the stock issuances for 2014 and 2015: Value Per Share Effective Number of Shares Vesting Service on Grant Date Issued Date Period Date 5/8/2014 17,237 5/8/2015 7/1/2014 - 6/30/2015 $ 25.53 5/12/2015 21,252 5/12/2016 7/1/2015 - 6/30/2016 $ 22.59 Compensation expense related to the above stock grant is recognized over the period in which the directors render services. Effective February 4, 2015, the Company issued 36,646 shares of class B restricted stock to certain of the Company's executives as a portion of compensation under the Company's 2014 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 in accordance with 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 $23.29 per share representing a total value of $853. 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 2014 Executive Incentive Bonus Plan. |
Litigation, Commitments and Con
Litigation, Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2015 | |
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 Comprehensive
Accumulated Other Comprehensive Income | 9 Months Ended |
Sep. 30, 2015 | |
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 nine months ending September 30, 2015: Unrealized holding gains on Foreign available-for-sale Currency securities Total Beginning balance $ 390 $ 51,840 $ 52,230 Other comprehensive income before reclassifications (1,102 ) (13,299 ) (14,401 ) Amounts reclassified from accumulated other comprehensive income - (1,658 ) (1,658 ) Net current-period other comprehensive income (1,102 ) (14,957 ) (16,059 ) Ending balance $ (712 ) $ 36,883 $ 36,171 |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2015 | |
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 Accoun18
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2015 | |
Summary of Significant Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation: |
Investments | Investments 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) on investments. 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 income. 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 income 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. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements |
Investments (Tables)
Investments (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Investments [Abstract] | |
Summary of available for sale securities | The following is a summary of available-for-sale securities at September 30, 2015 and December 31, 2014: Net Cost or Gross Gross Unrealized Fair Amortized Unrealized Unrealized Gains Value Cost Gains Losses (Losses) September 30, 2015 Fixed maturities U.S. government obligations $ 110,095 $ 109,746 $ 355 $ (6 ) $ 349 Residential mortgage-backed securities 5,116 4,886 244 (14 ) 230 Commercial mortgage-backed securities 29,601 29,735 374 (508 ) (134 ) States and municipal obligations 114,304 113,700 946 (342 ) 604 Corporate securities 162,294 163,733 2,350 (3,789 ) (1,439 ) Foreign government obligations 21,209 22,450 286 (1,527 ) (1,241 ) Total fixed maturities 442,619 444,250 4,555 (6,186 ) (1,631 ) Equity securities: Financial institutions 20,161 9,356 10,826 (21 ) 10,805 Industrial & miscellaneous 122,353 74,784 54,698 (7,129 ) 47,569 Total equity securities 142,514 84,140 65,524 (7,150 ) 58,374 Total $ 585,133 $ 528,390 $ 70,079 $ (13,336 ) 56,743 Applicable federal income taxes (19,860 ) Net unrealized gains - net of tax $ 36,883 December 31, 2014 Fixed maturities U.S. government obligations $ 101,094 $ 101,058 $ 108 $ (72 ) $ 36 Residential mortgage-backed securities 6,066 5,830 273 (37 ) 236 Commercial mortgage-backed securities 36,440 36,210 630 (400 ) 230 State and municipal obligations 113,777 113,133 784 (140 ) 644 Corporate securities 166,966 170,822 2,005 (5,861 ) (3,856 ) Foreign government obligations 27,466 28,332 114 (980 ) (866 ) Total fixed maturities 451,809 455,385 3,914 (7,490 ) (3,576 ) Equity securities: Financial institutions 25,343 10,100 15,303 (60 ) 15,243 Industrial & miscellaneous 136,764 68,678 70,260 (2,174 ) 68,086 Total equity securities 162,107 78,778 85,563 (2,234 ) 83,329 Total $ 613,916 $ 534,163 $ 89,477 $ (9,724 ) 79,753 Applicable federal income taxes (27,913 ) Net unrealized gains - net of tax $ 51,840 |
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 September 30, 2015 and December 31, 2014, respectively, the aggregate fair value and gross unrealized loss categorized by the duration those securities have been continuously in an unrealized loss position. September 30, 2015 December 31, 2014 Number of Securities Fair Value Gross Unrealized Loss Number of Securities Fair Value Gross Unrealized Loss Fixed maturity securities: 12 months or less 209 $ 98,604 $ (4,939 ) 591 $ 176,756 $ (6,083 ) Greater than 12 months 67 21,094 (1,247 ) 140 27,667 (1,407 ) Total fixed maturities 276 119,698 (6,186 ) 731 204,423 (7,490 ) Equity securities: 12 months or less 61 35,888 (6,181 ) 33 13,538 (2,170 ) Greater than 12 months 12 2,876 (969 ) 3 686 (64 ) Total equity securities 73 38,764 (7,150 ) 36 14,224 (2,234 ) Total fixed maturity and equity securities 349 $ 158,462 $ (13,336 ) 767 $ 218,647 $ (9,724 ) |
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 September 30, 2015, 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 $ 74,675 $ 75,062 Excess of one year to five years 244,552 245,370 Excess of five years to ten years 36,252 36,889 Excess of ten years 3,298 3,076 Contractual maturities 358,777 360,397 Asset-backed securities 83,842 83,853 Total $ 442,619 $ 444,250 |
Realized gains (losses) on investments | Following is a summary of the components of net realized gains (losses) on investments for the periods presented in the accompanying consolidated statements of income. Three Months Ended Nine Months Ended September 30 September 30 2015 2014 2015 2014 Fixed maturities: Gross gains $ 1,294 $ 798 $ 3,426 $ 5,399 Gross losses (5,087 ) (1,259 ) (8,876 ) (3,411 ) Net realized gains (losses) (3,793 ) (461 ) (5,450 ) 1,988 Equity securities: Gross gains 10,320 2,529 12,299 4,682 Gross losses (2,312 ) (346 ) (4,297 ) (1,057 ) Net realized gains 8,008 2,183 8,002 3,625 Limited partnerships - net gain (loss) (6,301 ) (1,064 ) (2,061 ) 7,204 Totals $ (2,086 ) $ 658 $ 491 $ 12,817 |
Schedule of realized gains | Net realized gains activity for investments, as shown in the previous table, are further detailed as follows: Three Months Ended Nine Months Ended September 30 September 30 2015 2014 2015 2014 Realized net gains on the disposal of securities $ 7,957 $ 2,223 $ 7,544 $ 5,837 Mark-to-market adjustment (300 ) (118 ) (692 ) 151 Equity in gains (losses) of limited partnership investments - realized and unrealized (6,301 ) (1,064 ) (2,061 ) 7,204 Impairment: Write-downs based upon objective criteria (4,396 ) (441 ) (5,503 ) (546 ) Recovery of prior write-downs upon sale or disposal 954 58 1,203 171 Totals $ (2,086 ) $ 658 $ 491 $ 12,817 |
Reinsurance (Tables)
Reinsurance (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Reinsurance [Abstract] | |
Reinsurance | The following table summarizes the Company's transactions with reinsurers for the 2015 and 2014 comparative periods. 2015 2014 Quarter ended September 30: Premiums ceded to reinsurers $ 32,822 $ 28,711 Losses and loss expenses ceded to reinsurers 21,068 15,451 Commissions from reinsurers 6,668 5,850 Nine months ended September 30: Premiums ceded to reinsurers $ 95,397 $ 91,345 Losses and loss expenses ceded to reinsurers 59,306 54,473 Commissions from reinsurers 21,713 17,425 |
Reportable Segments (Tables)
Reportable Segments (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
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. 2015 2014 Direct and Assumed Premium Written Net Premium Earned Segment Profit Direct and Assumed Premium Written Net Premium Earned Segment Profit (Loss) Three months ended September 30: Property and Casualty Insurance $ 92,584 $ 60,837 $ 14,513 $ 84,644 $ 57,097 $ 9,520 Reinsurance 3,368 4,608 86 9,947 8,850 (906 ) Totals $ 95,952 $ 65,445 $ 14,599 $ 94,591 $ 65,947 $ 8,614 Nine months ended September 30: Property and Casualty Insurance $ 272,260 $ 180,152 $ 31,195 $ 253,394 $ 163,613 $ 23,726 Reinsurance 13,467 17,188 1,099 31,049 29,081 196 Totals $ 285,727 $ 197,340 $ 32,294 $ 284,443 $ 192,694 $ 23,922 |
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 Nine Months Ended September 30 September 30 2015 2014 2015 2014 Profit: Segment profit $ 14,599 $ 8,614 $ 32,294 $ 23,922 Net investment income 3,014 2,073 8,727 6,456 Net realized gains (losses) on investments (2,086 ) 658 491 12,817 Corporate expenses and other (3,917 ) (2,797 ) (12,181 ) (11,171 ) Income before federal income taxes $ 11,610 $ 8,548 $ 29,331 $ 32,024 |
Fair Value (Tables)
Fair Value (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
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 September 30, 2015: Description Total Level 1 Level 2 Level 3 Fixed maturities: U.S. government obligations $ 110,095 $ - $ 110,095 $ - Residential mortgage-backed securities 5,116 - 5,116 - Commercial mortgage-backed securities 29,601 - 29,131 470 State and municipal obligations 114,304 - 114,304 - Corporate securities 160,087 - 154,436 5,651 Options embedded in convertible securities 2,207 - 2,207 - Foreign government obligations 21,209 - 20,925 284 Total fixed maturities 442,619 - 436,214 6,405 Equity securities: Financial institutions 20,161 20,161 - - Industrial & miscellaneous 122,353 122,353 - - Total equity securities 142,514 142,514 - - Short-term 2,220 2,220 - - Cash equivalents 59,882 - 59,882 - $ 647,235 $ 144,734 $ 496,096 $ 6,405 As of December 31, 2014: Description Total Level 1 Level 2 Level 3 Fixed maturities: U.S. government obligations $ 101,094 $ - $ 101,094 $ - Residential mortgage-backed securities 6,066 - 6,066 - Commercial mortgage-backed securities 36,440 - 36,440 - State and municipal obligations 113,777 - 113,777 - Corporate securities 164,068 - 151,860 12,208 Options embedded in convertible securities 2,898 - 2,898 - Foreign government obligations 27,466 - 27,466 - Total fixed maturities 451,809 - 439,601 12,208 Equity securities: Financial institutions 25,343 25,343 - - Industrial & miscellaneous 136,764 136,764 - - Total equity securities 162,107 162,107 - - Short-term 2,966 2,966 - - Cash equivalents 59,309 - 59,309 - $ 676,191 $ 165,073 $ 498,910 $ 12,208 |
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 nine months ended September 30, 2015 and for the year ended December 31, 2014: 2015 2014 Beginning of period balance $ 12,208 $ - Total gains or losses (realized or unrealized) included in income 47 - Purchases 2,163 - Settlements (8,027 ) - Transfers into level 3 995 12,208 Transfers out of level 3 (981 ) - End of period balance $ 6,405 $ 12,208 |
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 September 30, 2015 and December 31, 2014 are as follows: Carrying Fair Value Value Level 1 Level 2 Level 3 Total September 30, 2015 Assets: Limited partnerships $ 74,702 $ - $ - $ 74,702 $ 74,702 Liabilities: Short-term borrowings 20,000 - 20,000 - 20,000 December 31, 2014 Assets: Limited partnerships 81,230 - - 81,230 81,230 Liabilities: Short-term borrowings 20,000 - 20,000 - 20,000 |
Restricted Stock (Tables)
Restricted Stock (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Restricted Stock [Abstract] | |
Summary of stock issuances | The table below provides detail of the stock issuances for 2014 and 2015: Value Per Share Effective Number of Shares Vesting Service on Grant Date Issued Date Period Date 5/8/2014 17,237 5/8/2015 7/1/2014 - 6/30/2015 $ 25.53 5/12/2015 21,252 5/12/2016 7/1/2015 - 6/30/2016 $ 22.59 |
Accumulated Other Comprehensi24
Accumulated Other Comprehensive Income (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
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 nine months ending September 30, 2015: Unrealized holding gains on Foreign available-for-sale Currency securities Total Beginning balance $ 390 $ 51,840 $ 52,230 Other comprehensive income before reclassifications (1,102 ) (13,299 ) (14,401 ) Amounts reclassified from accumulated other comprehensive income - (1,658 ) (1,658 ) Net current-period other comprehensive income (1,102 ) (14,957 ) (16,059 ) Ending balance $ (712 ) $ 36,883 $ 36,171 |
Summary of Significant Accoun25
Summary of Significant Accounting Policies (Details) | 9 Months Ended |
Sep. 30, 2015 | |
Summary of Significant Accounting Policies [Abstract] | |
Percentage of decline on cost of securities treated as other-than-temporary impairment | 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) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2015USD ($)SecurityBorrower | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($)SecurityBorrower | Sep. 30, 2014USD ($) | Dec. 31, 2014USD ($)Security | |
Available-for-sale Debt Securities, Amortized Cost Basis [Abstract] | |||||
Cost or amortized cost | $ 444,250 | $ 444,250 | |||
Available-for-sale Securities, Fair Value to Amortized Cost Basis [Abstract] | |||||
Applicable federal income taxes | (19,860) | $ (27,913) | |||
Net unrealized gains - net of tax | $ 36,883 | $ 51,840 | |||
Available-for-sale Securities Continuous Unrealized Loss Position [Abstract] | |||||
Number of Securities, total | Security | 349 | 349 | 767 | ||
Available-for-sale Securities Continuous Unrealized Loss Position, Fair Value [Abstract] | |||||
Fair value, total | $ 158,462 | $ 158,462 | $ 218,647 | ||
Available-for-sale Securities Continuous Unrealized Loss Position, Aggregate Losses [Abstract] | |||||
Gross unrealized loss, total | (13,336) | (13,336) | (9,724) | ||
Available-for-sale Securities Debt Maturities Fair Value [Abstract] | |||||
One year or less, Fair Value | 74,675 | 74,675 | |||
Excess of one year to five years, Fair Value | 244,552 | 244,552 | |||
Excess of five years to ten years, Fair Value | 36,252 | 36,252 | |||
Excess of ten years, Fair Value | 3,298 | 3,298 | |||
Contractual maturities, Fair Value | 358,777 | 358,777 | |||
Asset-backed securities, Fair Value | 83,842 | 83,842 | |||
Total, Fair Value | 442,619 | 442,619 | |||
Available-for-sale Securities Debt Maturities Amortized Cost Basis [Abstract] | |||||
One year or less, Cost or Amortized Cost Basis | 75,062 | 75,062 | |||
Excess of one year to five years, Cost or Amortized Cost Basis | 245,370 | 245,370 | |||
Excess of five years to ten years, Cost or Amortized Cost Basis | 36,889 | 36,889 | |||
Excess of ten years, Cost or Amortized Cost Basis | 3,076 | 3,076 | |||
Contractual maturities, Cost or Amortized Cost Basis | 360,397 | 360,397 | |||
Asset-backed securities, Cost or Amortized Cost Basis | 83,853 | 83,853 | |||
Available-for-sale Securities, Gross Realized Gain (Loss) [Abstract] | |||||
Limited partnerships - net gain (loss) | (6,301) | $ (1,064) | (2,061) | $ 7,204 | |
Net realized gains (losses) on investments | (2,086) | 658 | 491 | 12,817 | |
Available for Sale Securities Gain Loss Activity [Abstract] | |||||
Realized net gains on the disposal of securities | 7,957 | 2,223 | 7,544 | 5,837 | |
Mark-to-market adjustment | (300) | (118) | (692) | 151 | |
Equity in gains (losses) of limited partnership investments - realized and unrealized | (6,301) | (1,064) | (2,061) | 7,204 | |
Write-downs based upon objective criteria | (4,396) | (441) | (5,503) | (546) | |
Recovery of prior write-downs upon sale or disposal | 954 | 58 | 1,203 | 171 | |
Net realized gains (losses) on investments | (2,086) | 658 | 491 | 12,817 | |
Net unrealized gains (losses) on investments | 9,335 | 8,280 | |||
Net unrealized gains in limited partnership | 4,967 | ||||
Undistributed earnings of limited partnership, net of taxes | 26,236 | 26,236 | |||
Committed funds for bridge loans | $ 17,000 | $ 17,000 | |||
Number of separate borrowers related to bridge loan agreements | Borrower | 2 | 2 | |||
U.S. Government Obligations [Member] | |||||
Available-for-sale Debt Securities, Amortized Cost Basis [Abstract] | |||||
Fair value | $ 110,095 | $ 110,095 | 101,094 | ||
Cost or amortized cost | 109,746 | 109,746 | 101,058 | ||
Gross unrealized gains | 355 | 355 | 108 | ||
Gross unrealized losses | (6) | (6) | (72) | ||
Net unrealized gains (losses) | 349 | 349 | 36 | ||
Residential Mortgage-backed Securities [Member] | |||||
Available-for-sale Debt Securities, Amortized Cost Basis [Abstract] | |||||
Fair value | 5,116 | 5,116 | 6,066 | ||
Cost or amortized cost | 4,886 | 4,886 | 5,830 | ||
Gross unrealized gains | 244 | 244 | 273 | ||
Gross unrealized losses | (14) | (14) | (37) | ||
Net unrealized gains (losses) | 230 | 230 | 236 | ||
Commercial Mortgage-backed Securities [Member] | |||||
Available-for-sale Debt Securities, Amortized Cost Basis [Abstract] | |||||
Fair value | 29,601 | 29,601 | 36,440 | ||
Cost or amortized cost | 29,735 | 29,735 | 36,210 | ||
Gross unrealized gains | 374 | 374 | 630 | ||
Gross unrealized losses | (508) | (508) | (400) | ||
Net unrealized gains (losses) | (134) | (134) | 230 | ||
States and Municipal Obligations [Member] | |||||
Available-for-sale Debt Securities, Amortized Cost Basis [Abstract] | |||||
Fair value | 114,304 | 114,304 | 113,777 | ||
Cost or amortized cost | 113,700 | 113,700 | 113,133 | ||
Gross unrealized gains | 946 | 946 | 784 | ||
Gross unrealized losses | (342) | (342) | (140) | ||
Net unrealized gains (losses) | 604 | 604 | 644 | ||
Corporate Securities [Member] | |||||
Available-for-sale Debt Securities, Amortized Cost Basis [Abstract] | |||||
Fair value | 162,294 | 162,294 | 166,966 | ||
Cost or amortized cost | 163,733 | 163,733 | 170,822 | ||
Gross unrealized gains | 2,350 | 2,350 | 2,005 | ||
Gross unrealized losses | (3,789) | (3,789) | (5,861) | ||
Net unrealized gains (losses) | (1,439) | (1,439) | (3,856) | ||
Foreign Government Obligations [Member] | |||||
Available-for-sale Debt Securities, Amortized Cost Basis [Abstract] | |||||
Fair value | 21,209 | 21,209 | 27,466 | ||
Cost or amortized cost | 22,450 | 22,450 | 28,332 | ||
Gross unrealized gains | 286 | 286 | 114 | ||
Gross unrealized losses | (1,527) | (1,527) | (980) | ||
Net unrealized gains (losses) | (1,241) | (1,241) | (866) | ||
Total Fixed Maturities [Member] | |||||
Available-for-sale Debt Securities, Amortized Cost Basis [Abstract] | |||||
Fair value | 442,619 | 442,619 | 451,809 | ||
Cost or amortized cost | 444,250 | 444,250 | 455,385 | ||
Gross unrealized gains | 4,555 | 4,555 | 3,914 | ||
Gross unrealized losses | (6,186) | (6,186) | (7,490) | ||
Net unrealized gains (losses) | $ (1,631) | $ (1,631) | $ (3,576) | ||
Available-for-sale Securities Continuous Unrealized Loss Position [Abstract] | |||||
Number of Securities, 12 months or less | Security | 209 | 209 | 591 | ||
Number of Securities, Greater than 12 months | Security | 67 | 67 | 140 | ||
Number of Securities, total | Security | 276 | 276 | 731 | ||
Available-for-sale Securities Continuous Unrealized Loss Position, Fair Value [Abstract] | |||||
Fair value, 12 months or less | $ 98,604 | $ 98,604 | $ 176,756 | ||
Fair value, Greater than 12 months | 21,094 | 21,094 | 27,667 | ||
Fair value, total | 119,698 | 119,698 | 204,423 | ||
Available-for-sale Securities Continuous Unrealized Loss Position, Aggregate Losses [Abstract] | |||||
Gross unrealized loss, 12 months or less | (4,939) | (4,939) | (6,083) | ||
Gross unrealized loss, Greater than 12 months | (1,247) | (1,247) | (1,407) | ||
Gross unrealized loss, total | (6,186) | (6,186) | (7,490) | ||
Available-for-sale Securities, Gross Realized Gain (Loss) [Abstract] | |||||
Gross gains | 1,294 | 798 | 3,426 | 5,399 | |
Gross losses | (5,087) | (1,259) | (8,876) | (3,411) | |
Net realized gains (losses) | (3,793) | (461) | (5,450) | 1,988 | |
Financial Institutions [Member] | |||||
Available-for-sale Equity Securities, Amortized Cost Basis [Abstract] | |||||
Fair value | 20,161 | 20,161 | 25,343 | ||
Cost or amortized cost | 9,356 | 9,356 | 10,100 | ||
Gross unrealized gains | 10,826 | 10,826 | 15,303 | ||
Gross unrealized losses | (21) | (21) | (60) | ||
Net unrealized gains (losses) | 10,805 | 10,805 | 15,243 | ||
Industrial & Miscellaneous [Member] | |||||
Available-for-sale Equity Securities, Amortized Cost Basis [Abstract] | |||||
Fair value | 122,353 | 122,353 | 136,764 | ||
Cost or amortized cost | 74,784 | 74,784 | 68,678 | ||
Gross unrealized gains | 54,698 | 54,698 | 70,260 | ||
Gross unrealized losses | (7,129) | (7,129) | (2,174) | ||
Net unrealized gains (losses) | 47,569 | 47,569 | 68,086 | ||
Total Equity Securities [Member] | |||||
Available-for-sale Equity Securities, Amortized Cost Basis [Abstract] | |||||
Fair value | 142,514 | 142,514 | 162,107 | ||
Cost or amortized cost | 84,140 | 84,140 | 78,778 | ||
Gross unrealized gains | 65,524 | 65,524 | 85,563 | ||
Gross unrealized losses | (7,150) | (7,150) | (2,234) | ||
Net unrealized gains (losses) | $ 58,374 | $ 58,374 | $ 83,329 | ||
Available-for-sale Securities Continuous Unrealized Loss Position [Abstract] | |||||
Number of Securities, 12 months or less | Security | 61 | 61 | 33 | ||
Number of Securities, Greater than 12 months | Security | 12 | 12 | 3 | ||
Number of Securities, total | Security | 73 | 73 | 36 | ||
Available-for-sale Securities Continuous Unrealized Loss Position, Fair Value [Abstract] | |||||
Fair value, 12 months or less | $ 35,888 | $ 35,888 | $ 13,538 | ||
Fair value, Greater than 12 months | 2,876 | 2,876 | 686 | ||
Fair value, total | 38,764 | 38,764 | 14,224 | ||
Available-for-sale Securities Continuous Unrealized Loss Position, Aggregate Losses [Abstract] | |||||
Gross unrealized loss, 12 months or less | (6,181) | (6,181) | (2,170) | ||
Gross unrealized loss, Greater than 12 months | (969) | (969) | (64) | ||
Gross unrealized loss, total | (7,150) | (7,150) | (2,234) | ||
Available-for-sale Securities, Gross Realized Gain (Loss) [Abstract] | |||||
Gross gains | 10,320 | 2,529 | 12,299 | 4,682 | |
Gross losses | (2,312) | (346) | (4,297) | (1,057) | |
Net realized gains (losses) | 8,008 | $ 2,183 | 8,002 | $ 3,625 | |
Total Available-for-sale Securities [Member] | |||||
Available-for-sale Securities, Fair Value to Amortized Cost Basis [Abstract] | |||||
Fair value | 585,133 | 585,133 | 613,916 | ||
Cost or amortized cost | 528,390 | 528,390 | 534,163 | ||
Gross unrealized gains | 70,079 | 70,079 | 89,477 | ||
Gross unrealized losses | (13,336) | (13,336) | (9,724) | ||
Net unrealized gains (losses) | $ 56,743 | $ 56,743 | $ 79,753 |
Reinsurance (Details)
Reinsurance (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Reinsurance [Abstract] | ||||
Premiums ceded to reinsurers | $ 32,822 | $ 28,711 | $ 95,397 | $ 91,345 |
Losses and loss expenses ceded to reinsurers | 21,068 | 15,451 | 59,306 | 54,473 |
Commissions from reinsurers | $ 6,668 | $ 5,850 | $ 21,713 | $ 17,425 |
Reportable Segments (Details)
Reportable Segments (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($)Segment | Sep. 30, 2014USD ($) | |
Reportable Segments [Abstract] | ||||
Number of reportable segments | Segment | 2 | |||
Segment Reporting Information [Line Items] | ||||
Net Premiums Earned | $ 65,445 | $ 65,947 | $ 197,340 | $ 192,694 |
Reconciliation from segment totals to consolidated [Abstract] | ||||
Income before federal income taxes | 11,610 | 8,548 | 29,331 | 32,024 |
Reportable Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Direct and Assumed Premium Written | 95,952 | 94,591 | 285,727 | 284,443 |
Net Premiums Earned | 65,445 | 65,947 | 197,340 | 192,694 |
Segment Profit (Loss) | 14,599 | 8,614 | 32,294 | 23,922 |
Reconciliation from segment totals to consolidated [Abstract] | ||||
Segment profit | 14,599 | 8,614 | 32,294 | 23,922 |
Reportable Segments [Member] | Property and Casualty Insurance [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Direct and Assumed Premium Written | 92,584 | 84,644 | 272,260 | 253,394 |
Net Premiums Earned | 60,837 | 57,097 | 180,152 | 163,613 |
Segment Profit (Loss) | 14,513 | 9,520 | 31,195 | 23,726 |
Reconciliation from segment totals to consolidated [Abstract] | ||||
Segment profit | 14,513 | 9,520 | 31,195 | 23,726 |
Reportable Segments [Member] | Reinsurance [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Direct and Assumed Premium Written | 3,368 | 9,947 | 13,467 | 31,049 |
Net Premiums Earned | 4,608 | 8,850 | 17,188 | 29,081 |
Segment Profit (Loss) | 86 | (906) | 1,099 | 196 |
Reconciliation from segment totals to consolidated [Abstract] | ||||
Segment profit | 86 | (906) | 1,099 | 196 |
Segment Reconciling Items [Member] | ||||
Reconciliation from segment totals to consolidated [Abstract] | ||||
Net investment income | 3,014 | 2,073 | 8,727 | 6,456 |
Net realized gains (losses) on investments | (2,086) | 658 | 491 | 12,817 |
Corporate expenses and other | $ (3,917) | $ (2,797) | $ (12,181) | $ (11,171) |
Debt (Details)
Debt (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Dec. 31, 2014 | |
Debt [Abstract] | ||
Revolving line of credit limit | $ 40,000 | |
Line of credit maturity date | Sep. 23, 2018 | |
Period of fixed interest on line of credit at company's options | 1 year | |
Outstanding drawings on line of credit | $ 20,000 | $ 20,000 |
Effective interest rate | 1.30% | |
Remaining unused amount under line of credit | $ 20,000 |
Fair Value (Details)
Fair Value (Details) - Recurring [Member] - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Fixed maturities [Abstract] | ||
U.S. government obligations | $ 110,095 | $ 101,094 |
Residential mortgage-backed securities | 5,116 | 6,066 |
Commercial mortgage-backed securities | 29,601 | 36,440 |
State and municipal obligations | 114,304 | 113,777 |
Corporate securities | 160,087 | 164,068 |
Options embedded in convertible securities | 2,207 | 2,898 |
Foreign government obligations | 21,209 | 27,466 |
Total fixed maturities | 442,619 | 451,809 |
Equity securities [Abstract] | ||
Financial institutions | 20,161 | 25,343 |
Industrial & miscellaneous | 122,353 | 136,764 |
Total equity securities | 142,514 | 162,107 |
Short-term | 2,220 | 2,966 |
Cash equivalents | 59,882 | 59,309 |
Total fair value | 647,235 | 676,191 |
Level 1 [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 | 20,161 | 25,343 |
Industrial & miscellaneous | 122,353 | 136,764 |
Total equity securities | 142,514 | 162,107 |
Short-term | 2,220 | 2,966 |
Cash equivalents | 0 | 0 |
Total fair value | 144,734 | 165,073 |
Level 2 [Member] | ||
Fixed maturities [Abstract] | ||
U.S. government obligations | 110,095 | 101,094 |
Residential mortgage-backed securities | 5,116 | 6,066 |
Commercial mortgage-backed securities | 29,131 | 36,440 |
State and municipal obligations | 114,304 | 113,777 |
Corporate securities | 154,436 | 151,860 |
Options embedded in convertible securities | 2,207 | 2,898 |
Foreign government obligations | 20,925 | 27,466 |
Total fixed maturities | 436,214 | 439,601 |
Equity securities [Abstract] | ||
Financial institutions | 0 | 0 |
Industrial & miscellaneous | 0 | 0 |
Total equity securities | 0 | 0 |
Short-term | 0 | 0 |
Cash equivalents | 59,882 | 59,309 |
Total fair value | 496,096 | 498,910 |
Level 3 [Member] | ||
Fixed maturities [Abstract] | ||
U.S. government obligations | 0 | 0 |
Residential mortgage-backed securities | 0 | 0 |
Commercial mortgage-backed securities | 470 | 0 |
State and municipal obligations | 0 | 0 |
Corporate securities | 5,651 | 12,208 |
Options embedded in convertible securities | 0 | 0 |
Foreign government obligations | 284 | 0 |
Total fixed maturities | 6,405 | 12,208 |
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 | $ 6,405 | $ 12,208 |
Fair Value, Unobservable Input
Fair Value, Unobservable Input Reconciliation (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Fair Value Assets Measured on Recurring Basis Unobservable Input Reconciliation Calculation [Roll Forward] | ||
Beginning of period balance | $ 12,208 | $ 0 |
Total gains or losses (realized or unrealized) included in income | 47 | 0 |
Purchases | 2,163 | 0 |
Settlements | (8,027) | 0 |
Transfers into level 3 | 995 | 12,208 |
Transfers out of level 3 | (981) | 0 |
End of period balance | $ 6,405 | $ 12,208 |
Fair Value, Balance Sheet Group
Fair Value, Balance Sheet Grouping (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Carrying Value [Member] | ||
Assets [Abstract] | ||
Limited partnerships | $ 74,702 | $ 81,230 |
Liabilities [Abstract] | ||
Short-term borrowings | 20,000 | 20,000 |
Fair Value [Member] | ||
Assets [Abstract] | ||
Limited partnerships | 74,702 | 81,230 |
Liabilities [Abstract] | ||
Short-term borrowings | 20,000 | 20,000 |
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 | 20,000 |
Fair Value [Member] | Level 3 [Member] | ||
Assets [Abstract] | ||
Limited partnerships | 74,702 | 81,230 |
Liabilities [Abstract] | ||
Short-term borrowings | $ 0 | $ 0 |
Restricted Stock (Details)
Restricted Stock (Details) - USD ($) $ / shares in Units, $ in Thousands | Feb. 04, 2015 | Sep. 30, 2015 | Sep. 30, 2015 | Dec. 31, 2014 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares distribution period from grant date | 1 year | |||
5/8/2014 [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Value of each share issued (in dollars per share) | $ 25.53 | |||
Summary of stock Issuances [Abstract] | ||||
Shares granted (in shares) | 17,237 | |||
Vesting date | May 8, 2015 | |||
5/12/2015 [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Value of each share issued (in dollars per share) | $ 22.59 | |||
Summary of stock Issuances [Abstract] | ||||
Shares granted (in shares) | 21,252 | |||
Vesting date | May 12, 2016 | |||
Restricted Stock Units (RSUs) [Member] | ||||
Summary of stock Issuances [Abstract] | ||||
Period restricted stocks will vest ratably from date of grant | 3 years | |||
Restricted Stock Units (RSUs) [Member] | Class B [Member] | Outside Director [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total value of shares issued | $ 480 | $ 440 | ||
Restricted Stock Units (RSUs) [Member] | Class B [Member] | Executives [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total value of shares issued | $ 853 | |||
Shares issued (in shares) | 36,646 | |||
Value of each share issued (in dollars per share) | $ 23.29 |
Accumulated Other Comprehensi34
Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Changes in Accumulated Other Comprehensive Income by Component [Roll Forward] | ||||
Beginning balance | $ 399,496 | |||
Other comprehensive income (loss) | $ (16,360) | $ (5,295) | (16,059) | $ 4,875 |
Ending balance | 392,885 | 392,885 | ||
AOCI Attributable to Parent [Member] | ||||
Changes in Accumulated Other Comprehensive Income by Component [Roll Forward] | ||||
Beginning balance | 52,230 | |||
Other comprehensive income before reclassifications | (14,401) | |||
Amounts reclassified from accumulated other comprehensive income | (1,658) | |||
Other comprehensive income (loss) | (16,059) | |||
Ending balance | 36,171 | 36,171 | ||
Foreign Currency [Member] | ||||
Changes in Accumulated Other Comprehensive Income by Component [Roll Forward] | ||||
Beginning balance | 390 | |||
Other comprehensive income before reclassifications | (1,102) | |||
Amounts reclassified from accumulated other comprehensive income | 0 | |||
Other comprehensive income (loss) | (1,102) | |||
Ending balance | (712) | (712) | ||
Unrealized Holding Gains on Available-for-sale Securities [Member] | ||||
Changes in Accumulated Other Comprehensive Income by Component [Roll Forward] | ||||
Beginning balance | 51,840 | |||
Other comprehensive income before reclassifications | (13,299) | |||
Amounts reclassified from accumulated other comprehensive income | (1,658) | |||
Other comprehensive income (loss) | (14,957) | |||
Ending balance | $ 36,883 | $ 36,883 |