Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2017 | May 01, 2017 | |
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 | 2,017 | |
Document Fiscal Period Focus | Q1 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2017 | |
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 | 12,481,081 |
Unaudited Consolidated Balance
Unaudited Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Investments: | ||
Fixed maturities | $ 508,802 | $ 491,904 |
Equity securities | 135,514 | 119,945 |
Limited partnerships | 65,739 | 76,469 |
Short-term and other | 1,500 | 1,500 |
Total Investments | 711,555 | 689,818 |
Cash and cash equivalents | 61,761 | 62,976 |
Accounts receivable | 67,303 | 64,984 |
Reinsurance recoverable | 262,423 | 255,024 |
Other assets | 75,148 | 78,732 |
Current federal income taxes recoverable | 0 | 2,603 |
Total Assets | 1,178,190 | 1,154,137 |
Liabilities and shareholders' equity | ||
Reserves for losses and loss expenses | 578,841 | 576,330 |
Reserves for unearned premiums | 25,968 | 21,694 |
Short-term borrowings | 20,000 | 20,000 |
Accounts payable and other liabilities | 125,375 | 120,356 |
Current federal income taxes | 946 | 0 |
Deferred federal income taxes | 14,158 | 11,412 |
Total Liabilities | 765,288 | 749,792 |
Shareholders' equity: | ||
Additional paid-in capital | 54,766 | 54,286 |
Unrealized net gains on investments | 39,386 | 34,051 |
Foreign exchange adjustment | (766) | (831) |
Retained earnings | 318,871 | 316,195 |
Shareholders' equity | 412,902 | 404,345 |
Total liabilities and shareholders' equity | 1,178,190 | 1,154,137 |
Class A Voting [Member] | ||
Shareholders' equity: | ||
Common stock | 112 | 112 |
Class B Non-voting [Member] | ||
Shareholders' equity: | ||
Common stock | $ 533 | $ 532 |
Unaudited Consolidated Balance3
Unaudited Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2017 | Dec. 31, 2016 |
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) | 12,481,081 | 12,460,900 |
Unaudited Consolidated Statemen
Unaudited Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Revenues | ||
Net premiums earned | $ 73,974 | $ 66,909 |
Net investment income | 3,692 | 3,440 |
Commissions and other income | 981 | 1,364 |
Net realized gains on investments | 6,294 | 11,072 |
Total other-than-temporary impairment losses on investments | 0 | (2,060) |
Net realized gains on investments | 6,294 | 9,012 |
Total revenues | 84,941 | 80,725 |
Expenses | ||
Losses and loss expenses incurred | 48,599 | 38,623 |
Other operating expenses | 26,164 | 20,664 |
Total expenses | 74,763 | 59,287 |
Income before federal income taxes | 10,178 | 21,438 |
Federal income taxes | 3,422 | 7,326 |
Net income | $ 6,756 | $ 14,112 |
Per share data: | ||
Basic and diluted earnings (in dollars per share) | $ 0.45 | $ 0.94 |
Dividends paid to shareholders (in dollars per share) | $ 0.27 | $ 0.26 |
Reconciliation of shares outstanding: | ||
Average shares outstanding - basic (in shares) | 15,096 | 15,044 |
Dilutive effect of share equivalents (in shares) | 8 | 32 |
Average shares outstanding - diluted (in shares) | 15,104 | 15,076 |
Unaudited Consolidated Stateme5
Unaudited Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Consolidated Statements of Comprehensive Income [Abstract] | ||
Net income | $ 6,756 | $ 14,112 |
Unrealized net gains (losses) on securities: | ||
Unrealized net gains (losses) arising during the period | 5,990 | (775) |
Less: reclassification adjustment for net gains (losses) included in net income | 655 | 7,275 |
Change in unrealized gains (losses) on investments | 5,335 | (8,050) |
Foreign currency translation adjustments | 65 | 419 |
Other comprehensive income (loss) | 5,400 | (7,631) |
Comprehensive income | $ 12,156 | $ 6,481 |
Unaudited Consolidated Stateme6
Unaudited Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Unaudited Consolidated Statements of Cash Flows [Abstract] | ||
Net cash provided by operating activities | $ 6,398 | $ 1,973 |
Investing activities: | ||
Purchases of available-for-sale investments | (115,947) | (112,301) |
Proceeds from sales or maturities of available-for-sale investments | 105,282 | 89,042 |
Net (purchases) sales of short-term investments | (7,290) | 5 |
Other investing activities | 14,357 | (1,154) |
Net cash used in investing activities | (3,598) | (24,408) |
Financing activities: | ||
Dividends paid to shareholders | (4,080) | (3,977) |
Net cash used in financing activities | (4,080) | (3,977) |
Effect of Foreign exchange rates on cash and cash equivalents | 65 | 419 |
Decrease in cash and cash equivalents | (1,215) | (25,993) |
Cash and cash equivalents at beginning of period | 62,976 | 73,538 |
Cash and cash equivalents at end of period | $ 61,761 | $ 47,545 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2017 | |
Summary of Significant Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | (1) Summary of Significant Accounting Policies Description of Business : The Company determined that its business constituted one reportable property and casualty insurance segment as of January 1, 2017. During 2016 and prior years, the Company had two reportable segments – property and casualty insurance and reinsurance. The Company moved to a single reportable segment based on how its operating results are regularly reviewed by the Company's chief operating decision maker to make decisions about resources to be allocated to the segment and to assess its performance. The prior period segment information throughout this Quarterly Report on Form 10-Q was updated to conform to the current year presentation. Basis of Presentation: Investments Short-term and other investments are carried at cost, which approximates their fair values. Realized gains and losses on disposals of investments are recorded on the trade date and are determined by specific identification of 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 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. In accordance with the Financial Accounting Standards Board's ("FASB") other-than-temporary impairment guidance, 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 condensed consolidated statements of operations. For impaired fixed maturity securities that the Company does not intend to sell or in cases where 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 condensed 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. The net present value is calculated by discounting the Company's best estimate of projected future cash flows at the appropriate effective interest rate. 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 a set percentage of original or adjusted cost, and where that decline has existed for a set period of time, the decline is treated as an other-than-temporary impairment. For any equity security where the decline has existed for a period of at least one year, the decline is treated as an other-than-temporary impairment. Additionally, the Company takes into account any known subjective information in evaluating for impairment, without consideration of the Company's quantitative criteria defined above, as well as the Company's intent and ability to retain the equity security for a period of time sufficient to allow for such recovery in fair value. Recent Accounting Pronouncements: In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606), as amended by subsequently issued ASUs, to clarify the principles for recognizing revenue. While insurance contracts are not within the scope of this updated guidance, the Company's service and fee income could be subject to this updated guidance. The updated guidance requires an entity to recognize revenue as performance obligations are met, in order to reflect the transfer of promised goods or services to customers in an amount that reflects the consideration the entity is entitled to receive for those goods or services. The following steps are applied in the updated guidance: (1) identify the contract(s) with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when, or as, the entity satisfies a performance obligation. In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, which deferred the effective date of ASU 2014-09 to the quarter ending March 31, 2018. The Company has performed an initial evaluation of the impact this guidance will have on its results of operations, financial position or liquidity. The Company does not expect the guidance to have a material impact on its results of operations, financial position or liquidity. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), or ASU 2016-02. Upon the effective date, ASU 2016-02 will supersede the current lease guidance in ASC Topic 840, Leases. Under the new guidance, lessees will be required to recognize for all leases, with the exception of short-term leases, a lease liability, which is a lessee's obligation to make lease payments arising from a lease, measured on a discounted basis. Concurrently, lessees will be required to recognize a right-of-use asset, which is an asset that represents the lessee's right to use, or control the use of, a specified asset for the lease term. ASU 2016-02 is effective for interim and annual reporting periods beginning after December 15, 2018, with early adoption permitted. The guidance is required to be applied using a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative periods presented in the financial statements. The Company is currently evaluating the effects that adoption of ASU 2016-02 will have on its consolidated financial statements, results of operations and cash flows. The Company does not expect the guidance to have a material impact on its results of operations, financial position or liquidity. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, or ASU 2016-13. This update introduces a current expected credit loss model for measuring expected credit losses for certain types of financial instruments held at the reporting date based on historical experience, current conditions and reasonable supportable forecasts. ASU 2016-13 replaces the current incurred loss model for measuring expected credit losses, requires expected losses on available-for-sale debt securities to be recognized through an allowance for credit losses rather than as reductions in the amortized cost of the securities, and provides for additional disclosure requirements. ASU 2016-13 is effective for interim and annual reporting periods beginning after December 15, 2019, with early adoption permitted for interim and annual reporting periods beginning after December 15, 2018. The Company is currently evaluating the effects that adoption of ASU 2016-13 will have on its consolidated financial statements, results of operations and cash flows. In January 2017, the FASB issued ASU No. 2017-04, Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment, or ASU 2017-04. This amendment removes Step 2 of the goodwill impairment test under current guidance, which requires a hypothetical purchase price allocation. The new guidance requires an impairment charge to be recognized for the amount by which the carrying amount exceeds the reporting unit's fair value. ASU 2017-04 is effective for interim and annual reporting periods beginning after December 15, 2020, with early adoption permitted. The Company does not expect the guidance to have a material impact on its results of operations, financial position or liquidity. |
Investments
Investments | 3 Months Ended |
Mar. 31, 2017 | |
Investments [Abstract] | |
Investments | (2) Investments: The following is a summary of available-for-sale securities at March 31, 2017 and December 31, 2016: Net Cost or Gross Gross Unrealized Fair Amortized Unrealized Unrealized Gains Value Cost Gains Losses (Losses) March 31, 2017 Fixed maturities Agency collateralized mortgage obligations $ 7,446 $ 7,065 $ 381 $ - $ 381 Agency mortgage-backed securities 10,693 10,683 54 (44 ) 10 Asset-backed securities 48,241 47,306 1,015 (80 ) 935 Bank loans 9,144 9,041 120 (17 ) 103 Certificates of deposit 3,119 3,125 - (6 ) (6 ) Collateralized mortgage obligations 6,119 6,034 262 (177 ) 85 Corporate securities 182,308 181,917 2,056 (1,665 ) 391 Mortgage-backed securities 24,019 23,735 880 (596 ) 284 Municipal obligations 128,883 128,818 621 (556 ) 65 Non-U.S. government obligations 21,428 22,545 254 (1,371 ) (1,117 ) U.S. government obligations 67,402 67,683 60 (341 ) (281 ) Total fixed maturities 508,802 507,952 5,703 (4,853 ) 850 Equity securities: Consumer 41,624 21,194 20,825 (395 ) 20,430 Energy 11,025 5,552 5,514 (41 ) 5,473 Financial 35,109 25,836 9,522 (249 ) 9,273 Industrial 24,147 7,981 16,336 (170 ) 16,166 Technology 9,518 3,933 5,585 - 5,585 Mutual fund 7,311 6,930 472 (91 ) 381 Other 6,780 4,344 2,633 (197 ) 2,436 Total equity securities 135,514 75,770 60,887 (1,143 ) 59,744 Total $ 644,316 $ 583,722 $ 66,590 $ (5,996 ) 60,594 Applicable federal income taxes (21,208 ) Net unrealized gains - net of tax $ 39,386 Net Cost or Gross Gross Unrealized Fair Amortized Unrealized Unrealized Gains Value Cost Gains Losses (Losses) December 31, 2016 Fixed maturities Agency collateralized mortgage obligations $ 6,171 $ 6,000 $ 171 $ - $ 171 Agency mortgage-backed securities 4,770 4,751 57 (38 ) 19 Asset-backed securities 45,183 45,207 458 (482 ) (24 ) Bank loans 10,349 10,222 149 (22 ) 127 Certificates of deposit 3,117 3,126 - (9 ) (9 ) Collateralized mortgage obligations 9,104 9,096 290 (282 ) 8 Corporate securities 142,683 143,356 1,643 (2,316 ) (673 ) Mortgage-backed securities 24,571 23,904 1,132 (465 ) 667 Municipal obligations 129,335 130,204 391 (1,260 ) (869 ) Non-U.S. government obligations 24,681 26,461 230 (2,010 ) (1,780 ) U.S. government obligations 91,940 92,234 74 (368 ) (294 ) Total fixed maturities 491,904 494,561 4,595 (7,252 ) (2,657 ) Equity securities: Consumer 32,576 15,231 17,656 (311 ) 17,345 Energy 12,842 5,641 7,203 (2 ) 7,201 Financial 31,186 22,417 8,998 (229 ) 8,769 Industrial 21,145 6,239 15,098 (192 ) 14,906 Technology 8,858 4,117 4,769 (28 ) 4,741 Mutual fund 6,995 6,930 121 (56 ) 65 Other 6,343 4,327 2,181 (165 ) 2,016 Total equity securities 119,945 64,902 56,026 (983 ) 55,043 Total $ 611,849 $ 559,463 $ 60,621 $ (8,235 ) 52,386 Applicable federal income taxes (18,335 ) Net unrealized gains - net of tax $ 34,051 The following table summarizes, for fixed maturity and equity security investments in an unrealized loss position at March 31, 2017 and December 31, 2016, respectively, the aggregate fair value and gross unrealized loss categorized by the duration those securities have been continuously in an unrealized loss position. March 31, 2017 December 31, 2016 Number of Securities Fair Value Gross Unrealized Loss Number of Securities Fair Value Gross Unrealized Loss Fixed maturity securities: 12 months or less 375 $ 258,128 $ (3,133 ) 397 $ 291,048 $ (4,380 ) Greater than 12 months 36 10,003 (1,720 ) 54 32,054 (2,872 ) Total fixed maturities 411 268,131 (4,853 ) 451 323,102 (7,252 ) Equity securities: 12 months or less 46 36,038 (1,143 ) 35 20,698 (983 ) Greater than 12 months - - - - - - Total equity securities 46 36,038 (1,143 ) 35 20,698 (983 ) Total fixed maturity and equity securities 457 $ 304,169 $ (5,996 ) 486 $ 343,800 $ (8,235 ) The fair value and the cost or amortized costs of fixed maturity investments at March 31, 2017, 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 $ 71,509 $ 71,658 Excess of one year to five years 291,246 292,665 Excess of five years to ten years 44,862 44,194 Excess of ten years 4,667 4,612 Contractual maturities 412,284 413,129 Asset-backed securities 96,518 94,823 Total $ 508,802 $ 507,952 Following is a summary of the components of net realized gains on investments for the periods presented in the accompanying condensed consolidated statements of income. Three Months Ended March 31 2017 2016 Fixed maturities: Gross gains $ 888 $ 1,277 Gross losses (1,373 ) (2,896 ) Net realized losses (485 ) (1,619 ) Equity securities: Gross gains 1,606 15,510 Gross losses (113 ) (2,700 ) Net realized gains 1,493 12,810 Limited partnerships - net gain (loss) 5,286 (2,179 ) Total net gains $ 6,294 $ 9,012 Net realized gains activity for investments, as shown in the previous table, are further detailed as follows: Three Months Ended March 31 2017 2016 Realized net gains on the disposal of securities $ 399 $ 8,309 Mark-to-market adjustment (284 ) (301 ) Equity in gains (losses) of limited partnership investments - realized and unrealized 5,286 (2,179 ) Impairment: Write-downs based upon objective criteria - (2,060 ) Recovery of prior write-downs upon sale or disposal 893 5,243 Total net gains $ 6,294 $ 9,012 The mark-to-market adjustments in the table above represent the changes in fair value of options embedded in convertible debt securities held by the Company. Shareholders' equity at March 31, 2017 included approximately $28,312, net of federal income taxes, of reported earnings which remain undistributed by limited partnerships. At March 31, 2017, limited partnership investments included approximately $37,737 invested in two partnerships which are managed by organizations in which certain of the Company's directors are officers, directors, general partners or owners. Each of these investments contains profit sharing agreements, pursuant to which a portion of the gains will be paid to the affiliated organizations. At March 31, 2017, the Company's invested assets, excluding limited partnership investments, included approximately $23,531 in portfolios managed by organizations in which certain of the Company's directors are officers, directors, general partners or owners. |
Reinsurance
Reinsurance | 3 Months Ended |
Mar. 31, 2017 | |
Reinsurance [Abstract] | |
Reinsurance | (3) Reinsurance: The following table summarizes the Company's transactions with reinsurers for the 2017 and 2016 comparative periods. 2017 2016 Three months ended March 31: Premiums ceded to reinsurers $ 31,308 $ 31,263 Losses and loss expenses ceded to reinsurers 19,474 29,324 Commissions from reinsurers 7,408 9,137 |
Loss and Loss Expense Reserves
Loss and Loss Expense Reserves | 3 Months Ended |
Mar. 31, 2017 | |
Loss and Loss Expense Reserves [Abstract] | |
Loss and Loss Expense Reserves | (4) Loss and Loss Expense Reserves: Activity in the reserves for losses and loss expenses for the three months ended March 31 is summarized as follows. All amounts are shown net of reinsurance, unless otherwise indicated. 2017 2016 Reserves at the beginning of the quarter $ 324,767 $ 301,753 Provision for losses and loss expenses: Claims occurring during the current quarter 48,487 39,861 Claims occurring during prior quarters 112 (1,238 ) Total incurred 48,599 38,623 Loss and loss expense payments: Claims occurring during the current quarter 9,508 7,087 Claims occurring during prior quarters 41,814 35,526 Total paid 51,322 42,613 Reserves at the end of the quarter 322,044 298,296 Reinsurance recoverable on unpaid losses at the end of the quarter 256,797 226,498 Reserves, gross of reinsurance recoverable, at the end of the quarter $ 578,841 $ 524,794 The table above shows that a deficiency of $112 developed during the first three months of 2017 in the settlement of claims occurring on or before December 31, 2016. This development is composed of individual claim savings and deficiencies which, in the aggregate, have resulted from the settlement of claims at amounts higher or lower than previously reserved and from changes in estimates of losses incurred but not reported as part of the normal reserving process. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2017 | |
Segment Information [Abstract] | |
Segment Information | (5) Segment Information The Company has one reportable business segment in its operations: Property and Casualty Insurance. 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 workers' compensation coverage to small businesses. Through this segment, the Company offers a range of products and services, the most significant being commercial auto and workers' compensation. The following table summarizes segment revenues for the three months ended March 31, 2017 and 2016: Three Months Ended March 31 2017 2016 Revenues: Net premiums earned $ 73,974 $ 66,909 Net investment income 3,692 3,440 Net realized gains on investments 6,294 9,012 Other 981 1,364 Total revenues $ 84,941 $ 80,725 |
Debt
Debt | 3 Months Ended |
Mar. 31, 2017 | |
Debt [Abstract] | |
Debt | (6) 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 March 31, 2017 and December 31, 2016. At March 31, 2017, the effective interest rate was 2.08%. The Company has $20,000 remaining unused under the line of credit at March 31, 2017. The current outstanding borrowings were used for general corporate purposes. |
Taxes
Taxes | 3 Months Ended |
Mar. 31, 2017 | |
Taxes [Abstract] | |
Taxes | (7) Taxes: As of March 31, 2017, the Company's calendar years 2016, 2015 and 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 | 3 Months Ended |
Mar. 31, 2017 | |
Fair Value [Abstract] | |
Fair Value | (8) Fair Value: Assets and liabilities recorded at fair value in the condensed 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 March 31, 2017: Description Total Level 1 Level 2 Level 3 Fixed maturities: Agency collateralized mortgage obligations $ 7,446 $ - $ 7,446 $ - Agency mortgage-backed securities 10,693 - 10,693 - Asset-backed securities 48,241 - 40,980 7,261 Bank loans 9,144 - - 9,144 Certificates of deposit 3,119 3,119 - - Collateralized mortgage obligations 6,119 - 5,225 894 Corporate securities 177,294 20,025 156,477 792 Options embedded in convertible securities 5,015 - 5,015 - Mortgage-backed securities 24,019 - 21,772 2,247 Municipal obligations 128,882 - 128,769 113 Non-U.S. government obligations 21,428 - 21,428 - U.S. government obligations 67,402 - 67,402 - Total fixed maturities 508,802 23,144 465,207 20,451 Equity securities: Consumer 41,624 41,624 - - Energy 11,025 11,025 - - Financial 35,109 35,109 - - Industrial 24,147 23,139 1,008 - Technology 9,518 9,518 - - Mutual fund 7,311 3,646 3,665 - Other 6,780 6,780 - - Total equity securities 135,514 130,841 4,673 - Short term 1,500 1,500 - - Cash equivalents 50,719 - 50,719 - Total $ 696,535 $ 155,485 $ 520,599 $ 20,451 As of December 31, 2016: Description Total Level 1 Level 2 Level 3 Fixed maturities: Agency collateralized mortgage obligations $ 6,171 $ - $ 6,171 $ - Agency mortgage-backed securities 4,770 - 4,770 - Asset-backed securities 45,183 - 37,919 7,264 Bank loans 10,349 - - 10,349 Certificates of deposit 3,117 3,117 - - Collateralized mortgage obligations 9,104 - 6,409 2,695 Corporate securities 137,932 - 135,794 2,138 Options embedded in convertible securities 4,751 - 4,751 - Mortgage-backed securities 24,571 - 22,206 2,365 Municipal obligations 129,335 - 129,190 145 Non-U.S. government obligations 24,681 - 24,419 262 U.S. government obligations 91,940 - 91,940 - Total fixed maturities 491,904 3,117 463,569 25,218 Equity securities: Consumer 32,576 32,576 - - Energy 12,842 12,842 - - Financial 31,186 30,943 243 - Industrial 21,145 20,262 883 - Technology 8,858 8,858 - - Mutual fund 6,995 - 6,995 - Other 6,343 6,343 - - Total equity securities 119,945 111,824 8,121 - Short term 1,500 1,500 - - Cash equivalents 59,683 - 59,683 - Total $ 673,032 $ 116,441 $ 531,373 $ 25,218 Level inputs, as defined by the FASB guidance, 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 Level 3 assets consist of a portfolio of asset and mortgage-backed securities, bank loans, collateralized mortgage obligations, corporate securities and a limited amount of municipal and foreign government obligations. The assets are valued using various unobservable inputs including extrapolated data, proprietary models and indicative quotes. Transfers into Level 3 during the three months ended March 31, 2017 and 2016 relate to securities previously classified as Level 2. 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 three months ended March 31: 2017 2016 Beginning of period balance $ 25,218 $ 16,793 Total gains or losses (realized or unrealized) included in income 261 (175 ) Purchases 1,069 - Settlements (5,602 ) (316 ) Transfers into Level 3 113 - Transfers out of Level 3 (608 ) - End of period balance $ 20,451 $ 16,302 Quoted market prices are obtained whenever possible. Where quoted market prices are not available, fair values are estimated using present value or other valuation techniques. These techniques are significantly affected by the Company's assumptions, including discount rates and estimates of future cash flows. Potential taxes and other transaction costs have not been considered in estimating fair values. 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 three months ended March 31, 2017 and 2016. In addition to the preceding disclosures on assets recorded at fair value in the condensed 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 condensed 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 policy reserve liabilities are excluded from the fair value disclosures. Therefore, the fair value amounts cannot be aggregated to determine the underlying economic value of the Company. 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 the Company's 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 the Company 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 condensed consolidated balance sheets at March 31, 2017 and December 31, 2016 are as follows: Carrying Fair Value Value Level 1 Level 2 Level 3 Total March 31, 2017 Assets: Limited partnerships $ 65,739 $ - $ - $ 65,739 $ 65,739 Liabilities: Short-term borrowings 20,000 - 20,000 - 20,000 December 31, 2016 Assets: Limited partnerships 76,469 - - 76,469 76,469 Liabilities: Short-term borrowings 20,000 - 20,000 - 20,000 |
Restricted Stock
Restricted Stock | 3 Months Ended |
Mar. 31, 2017 | |
Restricted Stock [Abstract] | |
Restricted Stock | (9) 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 $480 and $440 for the 2015 and 2016 annual periods presented, respectively. The table below provides detail of the stock issuances for 2015 and 2016: Value Per Share Effective Number of Shares Vesting Service on Grant Date Issued Date Period Date 5/12/2015 21,252 5/12/2016 7/1/2015 - 6/30/2016 $ 22.59 5/10/2016 17,677 5/10/2017 7/1/2016 - 6/30/2017 $ 24.89 Compensation expense related to the above stock grants is recognized over the period in which the directors render services. Effective February 8, 2017, the Company awarded 20,181 shares of Class B restricted stock to certain of the Company's executives under the company's Restricted Stock Compensation Plan. The restricted shares represent a portion of the calendar year 2016 compensation to certain executives under the terms of the Company's Executive Incentive Bonus Plan. The restricted shares will vest over a three-year period from the date of grant and will be distributed solely in the Company's Class B common stock. The restricted shares were valued based on the closing price of the Company's Class B common stock on the day the award was granted. Each share was valued at $23.80 per share, representing a total value of $480. 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 Compensation Committee. |
Litigation, Commitments and Con
Litigation, Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2017 | |
Litigation, Commitments and Contingencies [Abstract] | |
Litigation, Commitments and Contingencies | (10) 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 | 3 Months Ended |
Mar. 31, 2017 | |
Accumulated Other Comprehensive Income [Abstract] | |
Accumulated Other Comprehensive Income | (11) Accumulated Other Comprehensive Income: The following table illustrates changes in accumulated other comprehensive income by component for the three months ended March 31, 2017: Unrealized holding gains on Foreign available-for-sale Currency securities Total Beginning balance $ (831 ) $ 34,051 $ 33,220 Other comprehensive income before reclassifications 65 5,990 6,055 Amounts reclassified from accumulated other comprehensive income - (655 ) (655 ) Net current-period other comprehensive income 65 5,335 5,400 Ending balance $ (766 ) $ 39,386 $ 38,620 |
Other Operating Expenses
Other Operating Expenses | 3 Months Ended |
Mar. 31, 2017 | |
Other Operating Expenses [Abstract] | |
Other Operating Expenses | ( 12) Other Operating Expenses: During 2015, the Company entered into a consulting contract with an insurance brokerage firm of which a director of the Company is CEO and a Managing Director. The consulting contract provides for an annual fee of $300. The Company also has a brokerage agreement with this entity. The Company incurred commission expense in connection with insurance policies written in 2017 and 2016 under this brokerage agreement. Total commission expense for the three months ended March 31, 2017 and 2016 was $155 and $0, respectively. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | ( 13) Subsequent Events: The Company has evaluated subsequent events for recognition or disclosure in these condensed consolidated financial statements filed on Form 10-Q with the Securities and Exchange Commission and no events have occurred through the filing date of this Form 10-Q which require recognition or disclosure. |
Summary of Significant Accoun20
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2017 | |
Summary of Significant Accounting Policies [Abstract] | |
Description of Business | Description of Business : The Company determined that its business constituted one reportable property and casualty insurance segment as of January 1, 2017. During 2016 and prior years, the Company had two reportable segments – property and casualty insurance and reinsurance. The Company moved to a single reportable segment based on how its operating results are regularly reviewed by the Company's chief operating decision maker to make decisions about resources to be allocated to the segment and to assess its performance. The prior period segment information throughout this Quarterly Report on Form 10-Q was updated to conform to the current year presentation. |
Basis of Presentation | Basis of Presentation: Investments |
Investments | Short-term and other investments are carried at cost, which approximates their fair values. Realized gains and losses on disposals of investments are recorded on the trade date and are determined by specific identification of 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 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. In accordance with the Financial Accounting Standards Board's ("FASB") other-than-temporary impairment guidance, 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 condensed consolidated statements of operations. For impaired fixed maturity securities that the Company does not intend to sell or in cases where 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 condensed 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. The net present value is calculated by discounting the Company's best estimate of projected future cash flows at the appropriate effective interest rate. 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 a set percentage of original or adjusted cost, and where that decline has existed for a set period of time, the decline is treated as an other-than-temporary impairment. For any equity security where the decline has existed for a period of at least one year, the decline is treated as an other-than-temporary impairment. Additionally, the Company takes into account any known subjective information in evaluating for impairment, without consideration of the Company's quantitative criteria defined above, as well as the Company's intent and ability to retain the equity security for a period of time sufficient to allow for such recovery in fair value. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements: In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606), as amended by subsequently issued ASUs, to clarify the principles for recognizing revenue. While insurance contracts are not within the scope of this updated guidance, the Company's service and fee income could be subject to this updated guidance. The updated guidance requires an entity to recognize revenue as performance obligations are met, in order to reflect the transfer of promised goods or services to customers in an amount that reflects the consideration the entity is entitled to receive for those goods or services. The following steps are applied in the updated guidance: (1) identify the contract(s) with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when, or as, the entity satisfies a performance obligation. In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, which deferred the effective date of ASU 2014-09 to the quarter ending March 31, 2018. The Company has performed an initial evaluation of the impact this guidance will have on its results of operations, financial position or liquidity. The Company does not expect the guidance to have a material impact on its results of operations, financial position or liquidity. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), or ASU 2016-02. Upon the effective date, ASU 2016-02 will supersede the current lease guidance in ASC Topic 840, Leases. Under the new guidance, lessees will be required to recognize for all leases, with the exception of short-term leases, a lease liability, which is a lessee's obligation to make lease payments arising from a lease, measured on a discounted basis. Concurrently, lessees will be required to recognize a right-of-use asset, which is an asset that represents the lessee's right to use, or control the use of, a specified asset for the lease term. ASU 2016-02 is effective for interim and annual reporting periods beginning after December 15, 2018, with early adoption permitted. The guidance is required to be applied using a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative periods presented in the financial statements. The Company is currently evaluating the effects that adoption of ASU 2016-02 will have on its consolidated financial statements, results of operations and cash flows. The Company does not expect the guidance to have a material impact on its results of operations, financial position or liquidity. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, or ASU 2016-13. This update introduces a current expected credit loss model for measuring expected credit losses for certain types of financial instruments held at the reporting date based on historical experience, current conditions and reasonable supportable forecasts. ASU 2016-13 replaces the current incurred loss model for measuring expected credit losses, requires expected losses on available-for-sale debt securities to be recognized through an allowance for credit losses rather than as reductions in the amortized cost of the securities, and provides for additional disclosure requirements. ASU 2016-13 is effective for interim and annual reporting periods beginning after December 15, 2019, with early adoption permitted for interim and annual reporting periods beginning after December 15, 2018. The Company is currently evaluating the effects that adoption of ASU 2016-13 will have on its consolidated financial statements, results of operations and cash flows. In January 2017, the FASB issued ASU No. 2017-04, Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment, or ASU 2017-04. This amendment removes Step 2 of the goodwill impairment test under current guidance, which requires a hypothetical purchase price allocation. The new guidance requires an impairment charge to be recognized for the amount by which the carrying amount exceeds the reporting unit's fair value. ASU 2017-04 is effective for interim and annual reporting periods beginning after December 15, 2020, with early adoption permitted. The Company does not expect the guidance to have a material impact on its results of operations, financial position or liquidity. |
Investments (Tables)
Investments (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Investments [Abstract] | |
Summary of available for sale securities | The following is a summary of available-for-sale securities at March 31, 2017 and December 31, 2016: Net Cost or Gross Gross Unrealized Fair Amortized Unrealized Unrealized Gains Value Cost Gains Losses (Losses) March 31, 2017 Fixed maturities Agency collateralized mortgage obligations $ 7,446 $ 7,065 $ 381 $ - $ 381 Agency mortgage-backed securities 10,693 10,683 54 (44 ) 10 Asset-backed securities 48,241 47,306 1,015 (80 ) 935 Bank loans 9,144 9,041 120 (17 ) 103 Certificates of deposit 3,119 3,125 - (6 ) (6 ) Collateralized mortgage obligations 6,119 6,034 262 (177 ) 85 Corporate securities 182,308 181,917 2,056 (1,665 ) 391 Mortgage-backed securities 24,019 23,735 880 (596 ) 284 Municipal obligations 128,883 128,818 621 (556 ) 65 Non-U.S. government obligations 21,428 22,545 254 (1,371 ) (1,117 ) U.S. government obligations 67,402 67,683 60 (341 ) (281 ) Total fixed maturities 508,802 507,952 5,703 (4,853 ) 850 Equity securities: Consumer 41,624 21,194 20,825 (395 ) 20,430 Energy 11,025 5,552 5,514 (41 ) 5,473 Financial 35,109 25,836 9,522 (249 ) 9,273 Industrial 24,147 7,981 16,336 (170 ) 16,166 Technology 9,518 3,933 5,585 - 5,585 Mutual fund 7,311 6,930 472 (91 ) 381 Other 6,780 4,344 2,633 (197 ) 2,436 Total equity securities 135,514 75,770 60,887 (1,143 ) 59,744 Total $ 644,316 $ 583,722 $ 66,590 $ (5,996 ) 60,594 Applicable federal income taxes (21,208 ) Net unrealized gains - net of tax $ 39,386 Net Cost or Gross Gross Unrealized Fair Amortized Unrealized Unrealized Gains Value Cost Gains Losses (Losses) December 31, 2016 Fixed maturities Agency collateralized mortgage obligations $ 6,171 $ 6,000 $ 171 $ - $ 171 Agency mortgage-backed securities 4,770 4,751 57 (38 ) 19 Asset-backed securities 45,183 45,207 458 (482 ) (24 ) Bank loans 10,349 10,222 149 (22 ) 127 Certificates of deposit 3,117 3,126 - (9 ) (9 ) Collateralized mortgage obligations 9,104 9,096 290 (282 ) 8 Corporate securities 142,683 143,356 1,643 (2,316 ) (673 ) Mortgage-backed securities 24,571 23,904 1,132 (465 ) 667 Municipal obligations 129,335 130,204 391 (1,260 ) (869 ) Non-U.S. government obligations 24,681 26,461 230 (2,010 ) (1,780 ) U.S. government obligations 91,940 92,234 74 (368 ) (294 ) Total fixed maturities 491,904 494,561 4,595 (7,252 ) (2,657 ) Equity securities: Consumer 32,576 15,231 17,656 (311 ) 17,345 Energy 12,842 5,641 7,203 (2 ) 7,201 Financial 31,186 22,417 8,998 (229 ) 8,769 Industrial 21,145 6,239 15,098 (192 ) 14,906 Technology 8,858 4,117 4,769 (28 ) 4,741 Mutual fund 6,995 6,930 121 (56 ) 65 Other 6,343 4,327 2,181 (165 ) 2,016 Total equity securities 119,945 64,902 56,026 (983 ) 55,043 Total $ 611,849 $ 559,463 $ 60,621 $ (8,235 ) 52,386 Applicable federal income taxes (18,335 ) Net unrealized gains - net of tax $ 34,051 |
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 March 31, 2017 and December 31, 2016, respectively, the aggregate fair value and gross unrealized loss categorized by the duration those securities have been continuously in an unrealized loss position. March 31, 2017 December 31, 2016 Number of Securities Fair Value Gross Unrealized Loss Number of Securities Fair Value Gross Unrealized Loss Fixed maturity securities: 12 months or less 375 $ 258,128 $ (3,133 ) 397 $ 291,048 $ (4,380 ) Greater than 12 months 36 10,003 (1,720 ) 54 32,054 (2,872 ) Total fixed maturities 411 268,131 (4,853 ) 451 323,102 (7,252 ) Equity securities: 12 months or less 46 36,038 (1,143 ) 35 20,698 (983 ) Greater than 12 months - - - - - - Total equity securities 46 36,038 (1,143 ) 35 20,698 (983 ) Total fixed maturity and equity securities 457 $ 304,169 $ (5,996 ) 486 $ 343,800 $ (8,235 ) |
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 March 31, 2017, 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 $ 71,509 $ 71,658 Excess of one year to five years 291,246 292,665 Excess of five years to ten years 44,862 44,194 Excess of ten years 4,667 4,612 Contractual maturities 412,284 413,129 Asset-backed securities 96,518 94,823 Total $ 508,802 $ 507,952 |
Realized gains on investments | Following is a summary of the components of net realized gains on investments for the periods presented in the accompanying condensed consolidated statements of income. Three Months Ended March 31 2017 2016 Fixed maturities: Gross gains $ 888 $ 1,277 Gross losses (1,373 ) (2,896 ) Net realized losses (485 ) (1,619 ) Equity securities: Gross gains 1,606 15,510 Gross losses (113 ) (2,700 ) Net realized gains 1,493 12,810 Limited partnerships - net gain (loss) 5,286 (2,179 ) Total net gains $ 6,294 $ 9,012 |
Schedule of realized gains | Net realized gains activity for investments, as shown in the previous table, are further detailed as follows: Three Months Ended March 31 2017 2016 Realized net gains on the disposal of securities $ 399 $ 8,309 Mark-to-market adjustment (284 ) (301 ) Equity in gains (losses) of limited partnership investments - realized and unrealized 5,286 (2,179 ) Impairment: Write-downs based upon objective criteria - (2,060 ) Recovery of prior write-downs upon sale or disposal 893 5,243 Total net gains $ 6,294 $ 9,012 |
Reinsurance (Tables)
Reinsurance (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Reinsurance [Abstract] | |
Reinsurance | The following table summarizes the Company's transactions with reinsurers for the 2017 and 2016 comparative periods. 2017 2016 Three months ended March 31: Premiums ceded to reinsurers $ 31,308 $ 31,263 Losses and loss expenses ceded to reinsurers 19,474 29,324 Commissions from reinsurers 7,408 9,137 |
Loss and Loss Expense Reserves
Loss and Loss Expense Reserves (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Loss and Loss Expense Reserves [Abstract] | |
Summary of activity in reserves for losses and loss expenses | Activity in the reserves for losses and loss expenses for the three months ended March 31 is summarized as follows. All amounts are shown net of reinsurance, unless otherwise indicated. 2017 2016 Reserves at the beginning of the quarter $ 324,767 $ 301,753 Provision for losses and loss expenses: Claims occurring during the current quarter 48,487 39,861 Claims occurring during prior quarters 112 (1,238 ) Total incurred 48,599 38,623 Loss and loss expense payments: Claims occurring during the current quarter 9,508 7,087 Claims occurring during prior quarters 41,814 35,526 Total paid 51,322 42,613 Reserves at the end of the quarter 322,044 298,296 Reinsurance recoverable on unpaid losses at the end of the quarter 256,797 226,498 Reserves, gross of reinsurance recoverable, at the end of the quarter $ 578,841 $ 524,794 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Segment Information [Abstract] | |
Summary of segment revenues | The following table summarizes segment revenues for the three months ended March 31, 2017 and 2016: Three Months Ended March 31 2017 2016 Revenues: Net premiums earned $ 73,974 $ 66,909 Net investment income 3,692 3,440 Net realized gains on investments 6,294 9,012 Other 981 1,364 Total revenues $ 84,941 $ 80,725 |
Fair Value (Tables)
Fair Value (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Fair Value [Abstract] | |
Fair value measurements by level for assets measured at fair value on a recurring basis | The following tables summarize fair value measurements by level for assets measured at fair value on a recurring basis: As of March 31, 2017: Description Total Level 1 Level 2 Level 3 Fixed maturities: Agency collateralized mortgage obligations $ 7,446 $ - $ 7,446 $ - Agency mortgage-backed securities 10,693 - 10,693 - Asset-backed securities 48,241 - 40,980 7,261 Bank loans 9,144 - - 9,144 Certificates of deposit 3,119 3,119 - - Collateralized mortgage obligations 6,119 - 5,225 894 Corporate securities 177,294 20,025 156,477 792 Options embedded in convertible securities 5,015 - 5,015 - Mortgage-backed securities 24,019 - 21,772 2,247 Municipal obligations 128,882 - 128,769 113 Non-U.S. government obligations 21,428 - 21,428 - U.S. government obligations 67,402 - 67,402 - Total fixed maturities 508,802 23,144 465,207 20,451 Equity securities: Consumer 41,624 41,624 - - Energy 11,025 11,025 - - Financial 35,109 35,109 - - Industrial 24,147 23,139 1,008 - Technology 9,518 9,518 - - Mutual fund 7,311 3,646 3,665 - Other 6,780 6,780 - - Total equity securities 135,514 130,841 4,673 - Short term 1,500 1,500 - - Cash equivalents 50,719 - 50,719 - Total $ 696,535 $ 155,485 $ 520,599 $ 20,451 As of December 31, 2016: Description Total Level 1 Level 2 Level 3 Fixed maturities: Agency collateralized mortgage obligations $ 6,171 $ - $ 6,171 $ - Agency mortgage-backed securities 4,770 - 4,770 - Asset-backed securities 45,183 - 37,919 7,264 Bank loans 10,349 - - 10,349 Certificates of deposit 3,117 3,117 - - Collateralized mortgage obligations 9,104 - 6,409 2,695 Corporate securities 137,932 - 135,794 2,138 Options embedded in convertible securities 4,751 - 4,751 - Mortgage-backed securities 24,571 - 22,206 2,365 Municipal obligations 129,335 - 129,190 145 Non-U.S. government obligations 24,681 - 24,419 262 U.S. government obligations 91,940 - 91,940 - Total fixed maturities 491,904 3,117 463,569 25,218 Equity securities: Consumer 32,576 32,576 - - Energy 12,842 12,842 - - Financial 31,186 30,943 243 - Industrial 21,145 20,262 883 - Technology 8,858 8,858 - - Mutual fund 6,995 - 6,995 - Other 6,343 6,343 - - Total equity securities 119,945 111,824 8,121 - Short term 1,500 1,500 - - Cash equivalents 59,683 - 59,683 - Total $ 673,032 $ 116,441 $ 531,373 $ 25,218 |
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 three months ended March 31: 2017 2016 Beginning of period balance $ 25,218 $ 16,793 Total gains or losses (realized or unrealized) included in income 261 (175 ) Purchases 1,069 - Settlements (5,602 ) (316 ) Transfers into Level 3 113 - Transfers out of Level 3 (608 ) - End of period balance $ 20,451 $ 16,302 |
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 condensed consolidated balance sheets at March 31, 2017 and December 31, 2016 are as follows: Carrying Fair Value Value Level 1 Level 2 Level 3 Total March 31, 2017 Assets: Limited partnerships $ 65,739 $ - $ - $ 65,739 $ 65,739 Liabilities: Short-term borrowings 20,000 - 20,000 - 20,000 December 31, 2016 Assets: Limited partnerships 76,469 - - 76,469 76,469 Liabilities: Short-term borrowings 20,000 - 20,000 - 20,000 |
Restricted Stock (Tables)
Restricted Stock (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Restricted Stock [Abstract] | |
Summary of stock issuances | The table below provides detail of the stock issuances for 2015 and 2016: Value Per Share Effective Number of Shares Vesting Service on Grant Date Issued Date Period Date 5/12/2015 21,252 5/12/2016 7/1/2015 - 6/30/2016 $ 22.59 5/10/2016 17,677 5/10/2017 7/1/2016 - 6/30/2017 $ 24.89 |
Accumulated Other Comprehensi27
Accumulated Other Comprehensive Income (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
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 three months ended March 31, 2017: Unrealized holding gains on Foreign available-for-sale Currency securities Total Beginning balance $ (831 ) $ 34,051 $ 33,220 Other comprehensive income before reclassifications 65 5,990 6,055 Amounts reclassified from accumulated other comprehensive income - (655 ) (655 ) Net current-period other comprehensive income 65 5,335 5,400 Ending balance $ (766 ) $ 39,386 $ 38,620 |
Summary of Significant Accoun28
Summary of Significant Accounting Policies (Details) - Segment | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
Summary of Significant Accounting Policies [Abstract] | ||
Number of reportable segments | 1 | 2 |
Investments (Details)
Investments (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2017USD ($)SecurityPartnership | Mar. 31, 2016USD ($) | Dec. 31, 2016USD ($)Security | |
Available-for-sale Debt Securities, Amortized Cost Basis [Abstract] | |||
Fair value | $ 508,802 | ||
Cost or amortized cost | 507,952 | ||
Available-for-sale Securities, Fair Value to Amortized Cost Basis [Abstract] | |||
Fair value | 644,316 | $ 611,849 | |
Cost or amortized cost | 583,722 | 559,463 | |
Gross unrealized gains | 66,590 | 60,621 | |
Gross unrealized losses | (5,996) | (8,235) | |
Net unrealized gains (losses) | 60,594 | 52,386 | |
Applicable federal income taxes | (21,208) | (18,335) | |
Net unrealized gains - net of tax | $ 39,386 | $ 34,051 | |
Available-for-sale Securities Continuous Unrealized Loss Position [Abstract] | |||
Number of Securities, total | Security | 457 | 486 | |
Available-for-sale Securities Continuous Unrealized Loss Position, Fair Value [Abstract] | |||
Fair value, total | $ 304,169 | $ 343,800 | |
Available-for-sale Securities Continuous Unrealized Loss Position, Aggregate Losses [Abstract] | |||
Gross unrealized loss, total | (5,996) | (8,235) | |
Available-for-sale Securities Debt Maturities Fair Value [Abstract] | |||
One year or less, Fair Value | 71,509 | ||
Excess of one year to five years, Fair Value | 291,246 | ||
Excess of five years to ten years, Fair Value | 44,862 | ||
Excess of ten years, Fair Value | 4,667 | ||
Total contractual maturities, Fair Value | 412,284 | ||
Asset-backed securities, Fair Value | 96,518 | ||
Total, Fair Value | 508,802 | ||
Available-for-sale Securities Debt Maturities Amortized Cost Basis [Abstract] | |||
One year or less, Cost or Amortized Cost | 71,658 | ||
Excess of one year to five years, Cost or Amortized Cost | 292,665 | ||
Excess of five years to ten years, Cost or Amortized Cost | 44,194 | ||
Excess of ten years, Cost or Amortized Cost | 4,612 | ||
Total contractual maturities, Cost or Amortized Cost | 413,129 | ||
Asset-backed securities, Cost or Amortized Cost | 94,823 | ||
Cost or amortized cost | 507,952 | ||
Available-for-sale Securities, Gross Realized Gain (Loss) [Abstract] | |||
Limited partnerships - net gain (loss) | 5,286 | $ (2,179) | |
Net realized gains on investments | 6,294 | 9,012 | |
Available for Sale Securities Gain Loss Activity [Abstract] | |||
Realized net gains on the disposal of securities | 399 | 8,309 | |
Mark-to-market adjustment | (284) | (301) | |
Equity in gains (losses) of limited partnership investments - realized and unrealized | 5,286 | (2,179) | |
Impairment [Abstract] | |||
Write-downs based upon objective criteria | 0 | (2,060) | |
Recovery of prior write-downs upon sale or disposal | 893 | 5,243 | |
Net realized gains on investments | 6,294 | 9,012 | |
Undistributed earnings of limited partnership, net of taxes | 28,312 | ||
Total investment in limited partnerships | $ 37,737 | ||
Number of partnerships investment | Partnership | 2 | ||
Investment assets other than limited partnership | $ 23,531 | ||
Agency Collateralized Mortgage Obligations [Member] | |||
Available-for-sale Debt Securities, Amortized Cost Basis [Abstract] | |||
Fair value | 7,446 | 6,171 | |
Cost or amortized cost | 7,065 | 6,000 | |
Gross unrealized gains | 381 | 171 | |
Gross unrealized losses | 0 | 0 | |
Net unrealized gains (losses) | 381 | 171 | |
Available-for-sale Securities Debt Maturities Fair Value [Abstract] | |||
Total, Fair Value | 7,446 | 6,171 | |
Available-for-sale Securities Debt Maturities Amortized Cost Basis [Abstract] | |||
Cost or amortized cost | 7,065 | 6,000 | |
Agency Mortgage Backed Securities [Member] | |||
Available-for-sale Debt Securities, Amortized Cost Basis [Abstract] | |||
Fair value | 10,693 | 4,770 | |
Cost or amortized cost | 10,683 | 4,751 | |
Gross unrealized gains | 54 | 57 | |
Gross unrealized losses | (44) | (38) | |
Net unrealized gains (losses) | 10 | 19 | |
Available-for-sale Securities Debt Maturities Fair Value [Abstract] | |||
Total, Fair Value | 10,693 | 4,770 | |
Available-for-sale Securities Debt Maturities Amortized Cost Basis [Abstract] | |||
Cost or amortized cost | 10,683 | 4,751 | |
Asset-backed Securities [Member] | |||
Available-for-sale Debt Securities, Amortized Cost Basis [Abstract] | |||
Fair value | 48,241 | 45,183 | |
Cost or amortized cost | 47,306 | 45,207 | |
Gross unrealized gains | 1,015 | 458 | |
Gross unrealized losses | (80) | (482) | |
Net unrealized gains (losses) | 935 | (24) | |
Available-for-sale Securities Debt Maturities Fair Value [Abstract] | |||
Total, Fair Value | 48,241 | 45,183 | |
Available-for-sale Securities Debt Maturities Amortized Cost Basis [Abstract] | |||
Cost or amortized cost | 47,306 | 45,207 | |
Bank Loans [Member] | |||
Available-for-sale Debt Securities, Amortized Cost Basis [Abstract] | |||
Fair value | 9,144 | 10,349 | |
Cost or amortized cost | 9,041 | 10,222 | |
Gross unrealized gains | 120 | 149 | |
Gross unrealized losses | (17) | (22) | |
Net unrealized gains (losses) | 103 | 127 | |
Available-for-sale Securities Debt Maturities Fair Value [Abstract] | |||
Total, Fair Value | 9,144 | 10,349 | |
Available-for-sale Securities Debt Maturities Amortized Cost Basis [Abstract] | |||
Cost or amortized cost | 9,041 | 10,222 | |
Certificates of Deposit [Member] | |||
Available-for-sale Debt Securities, Amortized Cost Basis [Abstract] | |||
Fair value | 3,119 | 3,117 | |
Cost or amortized cost | 3,125 | 3,126 | |
Gross unrealized gains | 0 | 0 | |
Gross unrealized losses | (6) | (9) | |
Net unrealized gains (losses) | (6) | (9) | |
Available-for-sale Securities Debt Maturities Fair Value [Abstract] | |||
Total, Fair Value | 3,119 | 3,117 | |
Available-for-sale Securities Debt Maturities Amortized Cost Basis [Abstract] | |||
Cost or amortized cost | 3,125 | 3,126 | |
Collateralized Mortgage Obligations [Member] | |||
Available-for-sale Debt Securities, Amortized Cost Basis [Abstract] | |||
Fair value | 6,119 | 9,104 | |
Cost or amortized cost | 6,034 | 9,096 | |
Gross unrealized gains | 262 | 290 | |
Gross unrealized losses | (177) | (282) | |
Net unrealized gains (losses) | 85 | 8 | |
Available-for-sale Securities Debt Maturities Fair Value [Abstract] | |||
Total, Fair Value | 6,119 | 9,104 | |
Available-for-sale Securities Debt Maturities Amortized Cost Basis [Abstract] | |||
Cost or amortized cost | 6,034 | 9,096 | |
Corporate Securities [Member] | |||
Available-for-sale Debt Securities, Amortized Cost Basis [Abstract] | |||
Fair value | 182,308 | 142,683 | |
Cost or amortized cost | 181,917 | 143,356 | |
Gross unrealized gains | 2,056 | 1,643 | |
Gross unrealized losses | (1,665) | (2,316) | |
Net unrealized gains (losses) | 391 | (673) | |
Available-for-sale Securities Debt Maturities Fair Value [Abstract] | |||
Total, Fair Value | 182,308 | 142,683 | |
Available-for-sale Securities Debt Maturities Amortized Cost Basis [Abstract] | |||
Cost or amortized cost | 181,917 | 143,356 | |
Mortgage-backed Securities [Member] | |||
Available-for-sale Debt Securities, Amortized Cost Basis [Abstract] | |||
Fair value | 24,019 | 24,571 | |
Cost or amortized cost | 23,735 | 23,904 | |
Gross unrealized gains | 880 | 1,132 | |
Gross unrealized losses | (596) | (465) | |
Net unrealized gains (losses) | 284 | 667 | |
Available-for-sale Securities Debt Maturities Fair Value [Abstract] | |||
Total, Fair Value | 24,019 | 24,571 | |
Available-for-sale Securities Debt Maturities Amortized Cost Basis [Abstract] | |||
Cost or amortized cost | 23,735 | 23,904 | |
Municipal Obligations [Member] | |||
Available-for-sale Debt Securities, Amortized Cost Basis [Abstract] | |||
Fair value | 128,883 | 129,335 | |
Cost or amortized cost | 128,818 | 130,204 | |
Gross unrealized gains | 621 | 391 | |
Gross unrealized losses | (556) | (1,260) | |
Net unrealized gains (losses) | 65 | (869) | |
Available-for-sale Securities Debt Maturities Fair Value [Abstract] | |||
Total, Fair Value | 128,883 | 129,335 | |
Available-for-sale Securities Debt Maturities Amortized Cost Basis [Abstract] | |||
Cost or amortized cost | 128,818 | 130,204 | |
Non-U.S. Government Obligations [Member] | |||
Available-for-sale Debt Securities, Amortized Cost Basis [Abstract] | |||
Fair value | 21,428 | 24,681 | |
Cost or amortized cost | 22,545 | 26,461 | |
Gross unrealized gains | 254 | 230 | |
Gross unrealized losses | (1,371) | (2,010) | |
Net unrealized gains (losses) | (1,117) | (1,780) | |
Available-for-sale Securities Debt Maturities Fair Value [Abstract] | |||
Total, Fair Value | 21,428 | 24,681 | |
Available-for-sale Securities Debt Maturities Amortized Cost Basis [Abstract] | |||
Cost or amortized cost | 22,545 | 26,461 | |
U.S. Government Obligations [Member] | |||
Available-for-sale Debt Securities, Amortized Cost Basis [Abstract] | |||
Fair value | 67,402 | 91,940 | |
Cost or amortized cost | 67,683 | 92,234 | |
Gross unrealized gains | 60 | 74 | |
Gross unrealized losses | (341) | (368) | |
Net unrealized gains (losses) | (281) | (294) | |
Available-for-sale Securities Debt Maturities Fair Value [Abstract] | |||
Total, Fair Value | 67,402 | 91,940 | |
Available-for-sale Securities Debt Maturities Amortized Cost Basis [Abstract] | |||
Cost or amortized cost | 67,683 | 92,234 | |
Total Fixed Maturities [Member] | |||
Available-for-sale Debt Securities, Amortized Cost Basis [Abstract] | |||
Fair value | 508,802 | 491,904 | |
Cost or amortized cost | 507,952 | 494,561 | |
Gross unrealized gains | 5,703 | 4,595 | |
Gross unrealized losses | (4,853) | (7,252) | |
Net unrealized gains (losses) | $ 850 | $ (2,657) | |
Available-for-sale Securities Continuous Unrealized Loss Position [Abstract] | |||
Number of Securities, 12 months or less | Security | 375 | 397 | |
Number of Securities, Greater than 12 months | Security | 36 | 54 | |
Number of Securities, total | Security | 411 | 451 | |
Available-for-sale Securities Continuous Unrealized Loss Position, Fair Value [Abstract] | |||
Fair value, 12 months or less | $ 258,128 | $ 291,048 | |
Fair value, Greater than 12 months | 10,003 | 32,054 | |
Fair value, total | 268,131 | 323,102 | |
Available-for-sale Securities Continuous Unrealized Loss Position, Aggregate Losses [Abstract] | |||
Gross unrealized loss, 12 months or less | (3,133) | (4,380) | |
Gross unrealized loss, Greater than 12 months | (1,720) | (2,872) | |
Gross unrealized loss, total | (4,853) | (7,252) | |
Available-for-sale Securities Debt Maturities Fair Value [Abstract] | |||
Total, Fair Value | 508,802 | 491,904 | |
Available-for-sale Securities Debt Maturities Amortized Cost Basis [Abstract] | |||
Cost or amortized cost | 507,952 | 494,561 | |
Available-for-sale Securities, Gross Realized Gain (Loss) [Abstract] | |||
Gross gains | 888 | 1,277 | |
Gross losses | (1,373) | (2,896) | |
Net realized gains (losses) | (485) | (1,619) | |
Consumer [Member] | |||
Available-for-sale Equity Securities, Amortized Cost Basis [Abstract] | |||
Fair value | 41,624 | 32,576 | |
Cost or amortized cost | 21,194 | 15,231 | |
Gross unrealized gains | 20,825 | 17,656 | |
Gross unrealized losses | (395) | (311) | |
Net unrealized gains (losses) | 20,430 | 17,345 | |
Energy [Member] | |||
Available-for-sale Equity Securities, Amortized Cost Basis [Abstract] | |||
Fair value | 11,025 | 12,842 | |
Cost or amortized cost | 5,552 | 5,641 | |
Gross unrealized gains | 5,514 | 7,203 | |
Gross unrealized losses | (41) | (2) | |
Net unrealized gains (losses) | 5,473 | 7,201 | |
Financial [Member] | |||
Available-for-sale Equity Securities, Amortized Cost Basis [Abstract] | |||
Fair value | 35,109 | 31,186 | |
Cost or amortized cost | 25,836 | 22,417 | |
Gross unrealized gains | 9,522 | 8,998 | |
Gross unrealized losses | (249) | (229) | |
Net unrealized gains (losses) | 9,273 | 8,769 | |
Industrial [Member] | |||
Available-for-sale Equity Securities, Amortized Cost Basis [Abstract] | |||
Fair value | 24,147 | 21,145 | |
Cost or amortized cost | 7,981 | 6,239 | |
Gross unrealized gains | 16,336 | 15,098 | |
Gross unrealized losses | (170) | (192) | |
Net unrealized gains (losses) | 16,166 | 14,906 | |
Technology [Member] | |||
Available-for-sale Equity Securities, Amortized Cost Basis [Abstract] | |||
Fair value | 9,518 | 8,858 | |
Cost or amortized cost | 3,933 | 4,117 | |
Gross unrealized gains | 5,585 | 4,769 | |
Gross unrealized losses | 0 | (28) | |
Net unrealized gains (losses) | 5,585 | 4,741 | |
Mutual Fund [Member] | |||
Available-for-sale Equity Securities, Amortized Cost Basis [Abstract] | |||
Fair value | 7,311 | 6,995 | |
Cost or amortized cost | 6,930 | 6,930 | |
Gross unrealized gains | 472 | 121 | |
Gross unrealized losses | (91) | (56) | |
Net unrealized gains (losses) | 381 | 65 | |
Other [Member] | |||
Available-for-sale Equity Securities, Amortized Cost Basis [Abstract] | |||
Fair value | 6,780 | 6,343 | |
Cost or amortized cost | 4,344 | 4,327 | |
Gross unrealized gains | 2,633 | 2,181 | |
Gross unrealized losses | (197) | (165) | |
Net unrealized gains (losses) | 2,436 | 2,016 | |
Total Equity Securities [Member] | |||
Available-for-sale Equity Securities, Amortized Cost Basis [Abstract] | |||
Fair value | 135,514 | 119,945 | |
Cost or amortized cost | 75,770 | 64,902 | |
Gross unrealized gains | 60,887 | 56,026 | |
Gross unrealized losses | (1,143) | (983) | |
Net unrealized gains (losses) | $ 59,744 | $ 55,043 | |
Available-for-sale Securities Continuous Unrealized Loss Position [Abstract] | |||
Number of Securities, 12 months or less | Security | 46 | 35 | |
Number of Securities, Greater than 12 months | Security | 0 | 0 | |
Number of Securities, total | Security | 46 | 35 | |
Available-for-sale Securities Continuous Unrealized Loss Position, Fair Value [Abstract] | |||
Fair value, 12 months or less | $ 36,038 | $ 20,698 | |
Fair value, Greater than 12 months | 0 | 0 | |
Fair value, total | 36,038 | 20,698 | |
Available-for-sale Securities Continuous Unrealized Loss Position, Aggregate Losses [Abstract] | |||
Gross unrealized loss, 12 months or less | (1,143) | (983) | |
Gross unrealized loss, Greater than 12 months | 0 | 0 | |
Gross unrealized loss, total | (1,143) | $ (983) | |
Available-for-sale Securities, Gross Realized Gain (Loss) [Abstract] | |||
Gross gains | 1,606 | 15,510 | |
Gross losses | (113) | (2,700) | |
Net realized gains (losses) | $ 1,493 | $ 12,810 |
Reinsurance (Details)
Reinsurance (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Reinsurance [Abstract] | ||
Premiums ceded to reinsurers | $ 31,308 | $ 31,263 |
Losses and loss expenses ceded to reinsurers | 19,474 | 29,324 |
Commissions from reinsurers | $ 7,408 | $ 9,137 |
Loss and Loss Expense Reserve31
Loss and Loss Expense Reserves (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Activity in the reserve for losses and loss expenses [Roll Forward] | ||
Reserves at the beginning of the quarter | $ 324,767 | $ 301,753 |
Provision for losses and loss expenses [Abstract] | ||
Claims occurring during the current quarter | 48,487 | 39,861 |
Claims occurring during prior quarters | 112 | (1,238) |
Total incurred | 48,599 | 38,623 |
Loss and loss expense payments [Abstract] | ||
Claims occurring during the current quarter | 9,508 | 7,087 |
Claims occurring during prior quarters | 41,814 | 35,526 |
Total paid | 51,322 | 42,613 |
Reserves at the end of the quarter | 322,044 | 298,296 |
Reinsurance recoverable on unpaid losses at the end of the quarter | 256,797 | 226,498 |
Reserves, gross of reinsurance recoverable, at the end of the quarter | 578,841 | $ 524,794 |
Savings developed in settlements of claims with comparative developments for previous calendar years | $ 112 |
Segment Information (Details)
Segment Information (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2017USD ($)Segment | Mar. 31, 2016USD ($) | Dec. 31, 2016Segment | |
Segment Information [Abstract] | |||
Number of reportable segments | Segment | 1 | 2 | |
Summary of Segment Revenue [Abstract] | |||
Net premiums earned | $ 73,974 | $ 66,909 | |
Net investment income | 3,692 | 3,440 | |
Net realized gains on investments | 6,294 | 9,012 | |
Other | 981 | 1,364 | |
Total revenues | 84,941 | 80,725 | |
Property and Casualty Insurance [Member] | |||
Summary of Segment Revenue [Abstract] | |||
Net premiums earned | 73,974 | 66,909 | |
Net investment income | 3,692 | 3,440 | |
Net realized gains on investments | 6,294 | 9,012 | |
Other | 981 | 1,364 | |
Total revenues | $ 84,941 | $ 80,725 |
Debt (Details)
Debt (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Dec. 31, 2016 | |
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 | 2.08% | |
Remaining unused amount under line of credit | $ 20,000 |
Fair Value (Details)
Fair Value (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Fixed maturities [Abstract] | ||
Total fixed maturities | $ 508,802 | $ 491,904 |
Equity securities [Abstract] | ||
Total equity securities | 135,514 | 119,945 |
Recurring [Member] | ||
Fixed maturities [Abstract] | ||
Agency collateralized mortgage obligations | 7,446 | 6,171 |
Agency mortgage-backed securities | 10,693 | 4,770 |
Asset-backed securities | 48,241 | 45,183 |
Bank loans | 9,144 | 10,349 |
Certificates of deposit | 3,119 | 3,117 |
Collateralized mortgage obligations | 6,119 | 9,104 |
Corporate securities | 177,294 | 137,932 |
Options embedded in convertible securities | 5,015 | 4,751 |
Mortgage-backed securities | 24,019 | 24,571 |
Municipal obligations | 128,882 | 129,335 |
Non-U.S. government obligations | 21,428 | 24,681 |
U.S. government obligations | 67,402 | 91,940 |
Total fixed maturities | 508,802 | 491,904 |
Equity securities [Abstract] | ||
Consumer | 41,624 | 32,576 |
Energy | 11,025 | 12,842 |
Financial | 35,109 | 31,186 |
Industrial | 24,147 | 21,145 |
Technology | 9,518 | 8,858 |
Mutual fund | 7,311 | 6,995 |
Other | 6,780 | 6,343 |
Total equity securities | 135,514 | 119,945 |
Short-term | 1,500 | 1,500 |
Cash equivalents | 50,719 | 59,683 |
Total fair value | 696,535 | 673,032 |
Recurring [Member] | Level 1 [Member] | ||
Fixed maturities [Abstract] | ||
Agency collateralized mortgage obligations | 0 | 0 |
Agency mortgage-backed securities | 0 | 0 |
Asset-backed securities | 0 | 0 |
Bank loans | 0 | 0 |
Certificates of deposit | 3,119 | 3,117 |
Collateralized mortgage obligations | 0 | 0 |
Corporate securities | 20,025 | 0 |
Options embedded in convertible securities | 0 | 0 |
Mortgage-backed securities | 0 | 0 |
Municipal obligations | 0 | 0 |
Non-U.S. government obligations | 0 | 0 |
U.S. government obligations | 0 | 0 |
Total fixed maturities | 23,144 | 3,117 |
Equity securities [Abstract] | ||
Consumer | 41,624 | 32,576 |
Energy | 11,025 | 12,842 |
Financial | 35,109 | 30,943 |
Industrial | 23,139 | 20,262 |
Technology | 9,518 | 8,858 |
Mutual fund | 3,646 | 0 |
Other | 6,780 | 6,343 |
Total equity securities | 130,841 | 111,824 |
Short-term | 1,500 | 1,500 |
Cash equivalents | 0 | 0 |
Total fair value | 155,485 | 116,441 |
Recurring [Member] | Level 2 [Member] | ||
Fixed maturities [Abstract] | ||
Agency collateralized mortgage obligations | 7,446 | 6,171 |
Agency mortgage-backed securities | 10,693 | 4,770 |
Asset-backed securities | 40,980 | 37,919 |
Bank loans | 0 | 0 |
Certificates of deposit | 0 | 0 |
Collateralized mortgage obligations | 5,225 | 6,409 |
Corporate securities | 156,477 | 135,794 |
Options embedded in convertible securities | 5,015 | 4,751 |
Mortgage-backed securities | 21,772 | 22,206 |
Municipal obligations | 128,769 | 129,190 |
Non-U.S. government obligations | 21,428 | 24,419 |
U.S. government obligations | 67,402 | 91,940 |
Total fixed maturities | 465,207 | 463,569 |
Equity securities [Abstract] | ||
Consumer | 0 | 0 |
Energy | 0 | 0 |
Financial | 0 | 243 |
Industrial | 1,008 | 883 |
Technology | 0 | 0 |
Mutual fund | 3,665 | 6,995 |
Other | 0 | 0 |
Total equity securities | 4,673 | 8,121 |
Short-term | 0 | 0 |
Cash equivalents | 50,719 | 59,683 |
Total fair value | 520,599 | 531,373 |
Recurring [Member] | Level 3 [Member] | ||
Fixed maturities [Abstract] | ||
Agency collateralized mortgage obligations | 0 | 0 |
Agency mortgage-backed securities | 0 | 0 |
Asset-backed securities | 7,261 | 7,264 |
Bank loans | 9,144 | 10,349 |
Certificates of deposit | 0 | 0 |
Collateralized mortgage obligations | 894 | 2,695 |
Corporate securities | 792 | 2,138 |
Options embedded in convertible securities | 0 | 0 |
Mortgage-backed securities | 2,247 | 2,365 |
Municipal obligations | 113 | 145 |
Non-U.S. government obligations | 0 | 262 |
U.S. government obligations | 0 | 0 |
Total fixed maturities | 20,451 | 25,218 |
Equity securities [Abstract] | ||
Consumer | 0 | 0 |
Energy | 0 | 0 |
Financial | 0 | 0 |
Industrial | 0 | 0 |
Technology | 0 | 0 |
Mutual fund | 0 | 0 |
Other | 0 | 0 |
Total equity securities | 0 | 0 |
Short-term | 0 | 0 |
Cash equivalents | 0 | 0 |
Total fair value | $ 20,451 | $ 25,218 |
Fair Value, Unobservable Input
Fair Value, Unobservable Input Reconciliation (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Fair Value Assets Measured on Recurring Basis Unobservable Input Reconciliation Calculation [Roll Forward] | ||
Beginning of period balance | $ 25,218 | $ 16,793 |
Total gains or losses (realized or unrealized) included in income | 261 | (175) |
Purchases | 1,069 | 0 |
Settlements | (5,602) | (316) |
Transfers into Level 3 | 113 | 0 |
Transfers out of Level 3 | (608) | 0 |
End of period balance | $ 20,451 | $ 16,302 |
Fair Value, Balance Sheet Group
Fair Value, Balance Sheet Grouping (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Assets [Abstract] | ||
Limited partnerships | $ 65,739 | $ 76,469 |
Carrying Value [Member] | ||
Assets [Abstract] | ||
Limited partnerships | 65,739 | 76,469 |
Liabilities [Abstract] | ||
Short-term borrowings | 20,000 | 20,000 |
Fair Value [Member] | ||
Assets [Abstract] | ||
Limited partnerships | 65,739 | 76,469 |
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 | 65,739 | 76,469 |
Liabilities [Abstract] | ||
Short-term borrowings | $ 0 | $ 0 |
Restricted Stock (Details)
Restricted Stock (Details) - USD ($) $ / shares in Units, $ in Thousands | Feb. 08, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares distribution period from grant date | 1 year | |||
5/12/2015 [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Value per share on grant date (in dollars per share) | $ 22.59 | |||
Summary of stock Issuances [Abstract] | ||||
Number of shares issued (in shares) | 21,252 | |||
Vesting date | May 12, 2016 | |||
Service Period | 7/1/2015 - 6/30/2016 | |||
5/10/2016 [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Value per share on grant date (in dollars per share) | $ 24.89 | |||
Summary of stock Issuances [Abstract] | ||||
Number of shares issued (in shares) | 17,677 | |||
Vesting date | May 10, 2017 | |||
Service Period | 7/1/2016 - 6/30/2017 | |||
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 | $ 440 | $ 480 | ||
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 | $ 480 | |||
Shares awarded (in shares) | 20,181 | |||
Value per share on grant date (in dollars per share) | $ 23.80 |
Accumulated Other Comprehensi38
Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | $ 404,345 | |
Other comprehensive income before reclassifications | 6,055 | |
Amounts reclassified from accumulated other comprehensive income | (655) | |
Other comprehensive income (loss) | 5,400 | $ (7,631) |
Ending balance | 412,902 | |
AOCI Attributable to Parent [Member] | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | 33,220 | |
Ending balance | 38,620 | |
Foreign Currency [Member] | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (831) | |
Other comprehensive income before reclassifications | 65 | |
Amounts reclassified from accumulated other comprehensive income | 0 | |
Other comprehensive income (loss) | 65 | |
Ending balance | (766) | |
Unrealized Holding Gains on Available-for-sale Securities [Member] | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | 34,051 | |
Other comprehensive income before reclassifications | 5,990 | |
Amounts reclassified from accumulated other comprehensive income | (655) | |
Other comprehensive income (loss) | 5,335 | |
Ending balance | $ 39,386 |
Other Operating Expenses (Detai
Other Operating Expenses (Details) - Director [Member] - Consulting Contract [Member] - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2015 | |
Related Party Transaction [Line Items] | |||
Annual consulting contract fees | $ 300 | ||
Total commission expense | $ 155 | $ 0 |