Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Mar. 01, 2018 | Jun. 30, 2017 | |
Entity Information [Line Items] | |||
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 Public Float | $ 266,182,000 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 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 | 12,387,703 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Investments: | ||
Fixed maturities (Amortized cost: 2017, $521,017; 2016, $494,561) | $ 521,853 | $ 491,904 |
Equity securities (Cost: 2017, $130,751; 2016, $64,902) | 201,763 | 119,945 |
Limited partnerships (Affiliated: 2017, $43,586; 2016, $44,038) | 70,806 | 76,469 |
Short-term and other | 1,000 | 1,500 |
Total Investments | 795,422 | 689,818 |
Cash and cash equivalents | 64,680 | 62,976 |
Accounts receivable--less allowance (2017, $484; 2016, $542) | 87,551 | 64,984 |
Accrued investment income | 4,159 | 3,882 |
Reinsurance recoverable | 318,331 | 255,024 |
Prepaid reinsurance premiums | 4,578 | 2,674 |
Deferred policy acquisition costs | 5,608 | 1,172 |
Property and equipment--less accumulated depreciation (2017, $16,614; 2016, $15,328) | 47,317 | 47,225 |
Restricted cash and short-term investments | 11,402 | 0 |
Other assets | 11,030 | 23,779 |
Current federal income taxes recoverable | 6,938 | 2,603 |
Total Assets | 1,357,016 | 1,154,137 |
Reserves: | ||
Losses and loss expenses | 680,274 | 576,330 |
Unearned premiums | 53,085 | 21,694 |
Total Reserves | 733,359 | 598,024 |
Reinsurance payable | 62,308 | 43,150 |
Short-term borrowings | 20,000 | 20,000 |
Depository liabilities | 3,050 | 9,910 |
Accounts payable and other liabilities | 105,130 | 67,296 |
Deferred federal income taxes | 14,358 | 11,412 |
Total Liabilities | 938,205 | 749,792 |
Shareholders' equity: | ||
Additional paid-in capital | 55,078 | 54,286 |
Unrealized net gains on investments | 46,700 | 34,051 |
Foreign exchange adjustment | (309) | (831) |
Retained earnings | 316,700 | 316,195 |
Shareholders' equity | 418,811 | 404,345 |
Total liabilities and shareholders' equity | 1,357,016 | 1,154,137 |
Class A Voting [Member] | ||
Shareholders' equity: | ||
Common stock | 112 | 112 |
Class B Non-voting [Member] | ||
Shareholders' equity: | ||
Common stock | $ 530 | $ 532 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Assets | ||
Fixed maturities, amortized cost | $ 521,017 | $ 494,561 |
Equity securities, cost | 130,751 | 64,902 |
Limited partnerships, affiliated | 43,586 | 44,038 |
Account receivable, allowance | 484 | 542 |
Property and equipment, accumulated depreciation | $ 16,614 | $ 15,328 |
Class A Voting [Member] | ||
Shareholders' equity: | ||
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, shares authorized (in shares) | 20,000,000 | 20,000,000 |
Common stock, shares outstanding (in shares) | 12,423,518 | 12,460,900 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenues: | |||
Net premiums earned | $ 328,145 | $ 276,011 | $ 263,335 |
Net investment income | 18,095 | 14,483 | 12,498 |
Commissions and other income | 5,308 | 5,275 | 5,703 |
Net realized gains on investments, excluding impairment losses | 19,835 | 28,971 | 6,439 |
Total other-than-temporary impairment losses on investments | (149) | (5,743) | (7,700) |
Net realized gains (losses) on investments | 19,686 | 23,228 | (1,261) |
Total revenues | 371,234 | 318,997 | 280,275 |
Expenses: | |||
Losses and loss expenses incurred | 247,518 | 186,481 | 155,750 |
Other operating expenses | 113,594 | 89,462 | 90,573 |
Total expenses | 361,112 | 275,943 | 246,323 |
Income before federal income taxes (benefits) | 10,122 | 43,054 | 33,952 |
Federal income taxes (benefits) | (8,201) | 14,109 | 10,669 |
Net income | $ 18,323 | $ 28,945 | $ 23,283 |
Per share data: | |||
Basic and diluted earnings (in dollars per share) | $ 1.21 | $ 1.92 | $ 1.55 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Consolidated Statements of Comprehensive Income [Abstract] | |||||||||||
Net income | $ 16,476 | $ 7,434 | $ (12,343) | $ 6,756 | $ 4,864 | $ 4,001 | $ 5,969 | $ 14,112 | $ 18,323 | $ 28,945 | $ 23,283 |
Unrealized net gains (losses) on securities: | |||||||||||
Unrealized holding net gains (losses) arising during the period | 17,340 | 8,618 | (12,639) | ||||||||
Less: reclassification adjustment for net gains (losses) included in net income | (4,691) | (13,491) | (277) | ||||||||
Change in unrealized gains (losses) on investments | 12,649 | (4,873) | (12,916) | ||||||||
Foreign currency translation adjustments | 522 | 235 | (1,456) | ||||||||
Other comprehensive income (loss) | 13,171 | (4,638) | (14,372) | ||||||||
Comprehensive income | $ 31,494 | $ 24,307 | $ 8,911 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity $ in Thousands | USD ($) |
Shareholders' equity at beginning of year: at Dec. 31, 2014 | $ 399,496 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |
Net income | 23,283 |
Other comprehensive income (loss) | (14,372) |
Cash dividends paid to shareholders | (15,003) |
Issuance of common stock | 1,094 |
Repurchase of common shares | 0 |
Shareholders' equity at end of year: at Dec. 31, 2015 | 394,498 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |
Net income | 28,945 |
Other comprehensive income (loss) | (4,638) |
Cash dividends paid to shareholders | (15,803) |
Issuance of common stock | 1,343 |
Repurchase of common shares | 0 |
Shareholders' equity at end of year: at Dec. 31, 2016 | 404,345 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |
Net income | 18,323 |
Other comprehensive income (loss) | 13,171 |
Cash dividends paid to shareholders | (16,302) |
Issuance of common stock | 1,154 |
Repurchase of common shares | (1,880) |
Shareholders' equity at end of year: at Dec. 31, 2017 | $ 418,811 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Operating activities | |||
Net income | $ 18,323 | $ 28,945 | $ 23,283 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Change in accounts receivable and unearned premium | 2,678 | (2,721) | 22,939 |
Change in accrued investment income | (278) | 108 | (307) |
Change in reinsurance recoverable on paid losses | (446) | 692 | 4,458 |
Change in losses and loss expenses reserves net of reinsurance | 47,229 | 23,568 | 6,325 |
Change in other assets, other liabilities and current income taxes | 45,188 | (8,063) | (28,299) |
Amortization of net policy acquisition costs | 47,387 | 18,085 | 21,314 |
Net policy acquisition costs deferred | (51,824) | (17,813) | (20,495) |
Provision for deferred income taxes (benefits) | (3,866) | 2,838 | (1,819) |
Bond amortization | 1,865 | 3,030 | 3,388 |
Loss on sale of property and equipment | 235 | 63 | 18 |
Depreciation | 5,752 | 5,521 | 5,037 |
Net realized (gains) losses on investments | (19,686) | (23,228) | 1,261 |
Compensation expense related to restricted stock | 1,154 | 1,343 | 1,094 |
Net cash provided by operating activities | 93,711 | 32,368 | 38,197 |
Investing activities | |||
Purchases of fixed maturities and equity securities | (436,932) | (400,670) | (342,592) |
Purchases of limited partnership interests | (1,097) | 0 | (409) |
Distributions from limited partnerships | 19,230 | 1,462 | 4,494 |
Proceeds from maturities | 131,623 | 78,691 | 161,706 |
Proceeds from sales of fixed maturities | 148,652 | 199,790 | 117,338 |
Proceeds from sales of equity securities | 69,756 | 88,773 | 53,270 |
Net sales of short-term investments | 500 | 11,258 | 746 |
Purchases of property and equipment | (6,661) | (7,725) | (7,662) |
Proceeds from disposals of property and equipment | 582 | 1,059 | 277 |
Net cash used in investing activities | (74,347) | (27,362) | (12,832) |
Financing activities | |||
Dividends paid to shareholders | (16,302) | (15,803) | (15,003) |
Repurchase of common shares | (1,880) | 0 | 0 |
Net cash used in financing activities | (18,182) | (15,803) | (15,003) |
Effect of foreign exchange rates on cash and cash equivalents | 522 | 235 | (1,456) |
Increase (decrease) in cash and cash equivalents | 1,704 | (10,562) | 8,906 |
Cash and cash equivalents at beginning of year | 62,976 | 73,538 | 64,632 |
Cash and cash equivalents at end of year | 64,680 | 62,976 | 73,538 |
Supplemental Disclosures of Cash Flow Information | |||
Cash paid for income taxes, net of refunds | 0 | 10,173 | 14,500 |
Cash paid for interest | $ 456 | $ 309 | $ 286 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Summary of Significant Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note A - 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 year segment information throughout this Annual Report on Form 10-K was updated to conform to the current year presentation. Basis of Presentation: Use of Estimates: Cash and Cash Equivalents: 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, 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. 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 Standard 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 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 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 20% of original or adjusted cost, and where that decline has existed for six months, the decline is treated as an other-than-temporary impairment. Additionally, 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. Property and Equipment: Goodwill and Other Intangible Assets: Reserves for Losses and Loss Expenses: Recognition of Revenue and Costs: Reinsurance Should impairment in the ability of a reinsurer to satisfy its obligations to the Company be determined to exist, current year operations would be charged in amounts sufficient to provide for the Company's additional liability. Such charges, when incurred, are included in other operating expenses, rather than losses and loss expenses incurred, since the inability of the Company to collect from reinsurers is a credit risk rather than a deficiency associated with the loss reserving process. The Company accounts for foreign and domestic reinsurance using the periodic method. Under the periodic method, premiums are recognized as revenue ratably over the contract term, and claims, including an estimate of claims incurred but not reported, are recognized as they occur. Deferred Taxes: Restricted Stock: Earnings Per Share: Comprehensive Income: Fair Value Measurements: Recent Accounting Pronouncements: In May 2014, the FASB issued Accounting Standards Update ("ASU") 2014-09, Revenue from Contracts with Customers (Topic 606), or ASU 2014-09, 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 commission and fee income, other than that directly associated with insurance contracts, is 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 will use the modified retrospective method upon adoption in 2018. The Company has completed its evaluation of the impact this guidance will have on its consolidated financial statements and has performed a technical assessment of material customer contracts and has concluded the adoption of ASU 2014-09 will not result in any material adjustments and it will not have a material impact on the Company's consolidated financial statements. In January 2016, the FASB issued ASU 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities, or ASU 2016-01. The amendments in ASU 2016-01 change the accounting for non-consolidated equity investments that are not accounted for under the equity method of accounting by requiring changes in fair value to be recognized in income. Under current guidance, changes in fair value for investments of this nature were recognized in accumulated other comprehensive income as a component of shareholders' equity. Additionally, ASU 2016-01 simplifies the impairment assessment of equity investments without readily determinable fair values; requires entities to use the exit price when estimating the fair value of financial instruments; and modifies various presentation disclosure requirements for financial instruments. ASU 2016-01 became effective for interim and annual reporting periods beginning after December 15, 2017. The effect of this guidance will be dependent on the unrealized gains or losses associated with the Company's equity investments. Such unrealized gains or losses will be recognized upon adoption as a cumulative-effect adjustment to retained earnings with future unrealized gains or losses recognized in the statement of income. Refer to Note B for a discussion of unrealized gains and losses (before income taxes) on non-consolidated equity investments of $71,012 currently recognized in other comprehensive income (loss). 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 does not expect the adoption of ASU 2016-02 to have a material impact on the Company's consolidated financial statements. 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 the adoption of ASU 2016-13 will have on its consolidated financial statements. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. This update addresses the presentation and classification on the statement of cash flows for eight specific items, with the objective of reducing existing diversity in practice in how certain cash receipts and cash payments are presented and classified. ASU 2016-15 is effective for interim and annual reporting periods beginning after December 15, 2017, with early adoption permitted. We are currently evaluating the effects the adoption of ASU 2016-15 will have on our consolidated statements of cash flows, if any. The Company does not expect ASU 2016-18 to impact our consolidated balance sheet or consolidated statement of income. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash. This update amends ASC Topic 230 to add and clarify guidance on the classification and presentation of restricted cash in the statement of cash flows. The guidance requires entities to show the changes in the total of cash, cash equivalents, restricted cash and restricted cash equivalents in the statement of cash flows. The guidance will be applied retrospectively and is effective for annual periods beginning after December 15, 2017, and interim periods within those years, with early adoption permitted. We are currently evaluating the effects the adoption of ASU 2016-18 will have on our consolidated statements of cash flows. The Company does not expect ASU 2016-18 to impact our consolidated balance sheet or consolidated statement of income. I In February 2018, the FASB issued ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220). This ASU allows for the option to reclassify from accumulated other comprehensive income ("AOCI") to retained earnings for stranded tax effects resulting from the newly enacted federal corporate income tax rate in the Tax Cuts and Jobs Act of 2017 (the "U.S. Tax Act"), which was enacted on December 22, 2017. The legislation included a reduction to the corporate income tax rate from 35 percent to 21 percent effective January 1, 2018. The amount of the reclassification would be the difference between the historical corporate income tax rate and the newly enacted 21 percent corporate income tax rate. ASU 2018-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company is still evaluating the impacts of this standard on its consolidated financial statements but intends to make this reclassification. |
Investments
Investments | 12 Months Ended |
Dec. 31, 2017 | |
Investments [Abstract] | |
Investments | Note B - Investments The following is a summary of available for sale securities at December 31: Net Cost or Gross Gross Unrealized Fair Amortized Unrealized Unrealized Gains Value Cost Gains Losses (Losses) December 31, 2017 Fixed maturities Agency collateralized mortgage obligations $ 16,586 $ 15,839 $ 818 $ (71 ) $ 747 Agency mortgage-backed securities 27,075 27,180 47 (152 ) (105 ) Asset-backed securities 43,469 42,861 749 (141 ) 608 Bank loans 19,488 19,271 266 (49 ) 217 Certificates of deposit 3,135 3,124 11 - 11 Collateralized mortgage obligations 6,492 6,079 451 (38 ) 413 Corporate securities 198,349 198,419 1,602 (1,672 ) (70 ) Mortgage-backed securities 24,204 23,656 933 (385 ) 548 Municipal obligations 96,650 97,059 322 (731 ) (409 ) Non-U.S. government obligations 37,394 37,971 475 (1,052 ) (577 ) U.S. government obligations 49,011 49,558 - (547 ) (547 ) Total fixed maturities 521,853 521,017 5,674 (4,838 ) 836 Equity securities: Consumer 46,578 23,565 24,031 (1,018 ) 23,013 Energy 10,278 6,763 3,602 (87 ) 3,515 Financial 45,470 31,859 13,937 (326 ) 13,611 Industrial 25,402 8,949 16,793 (340 ) 16,453 Technology 13,061 5,768 7,401 (108 ) 7,293 Funds (e.g. mutual funds, closed end funds, ETFs) 50,291 46,177 4,153 (39 ) 4,114 Other 10,683 7,670 3,313 (300 ) 3,013 Total equity securities 201,763 130,751 73,230 (2,218 ) 71,012 Total $ 723,616 $ 651,768 $ 78,904 $ (7,056 ) 71,848 Applicable federal income taxes (25,148 ) Net unrealized gains - net of tax $ 46,700 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 Funds (e.g. mutual funds, closed end funds, ETFs) 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 December 31, the aggregate fair value and gross unrealized loss categorized by the duration those securities have been continuously in an unrealized loss position: 2017 2016 Number of Securities Fair Value Gross Unrealized Loss Number of Securities Fair Value Gross Unrealized Loss Fixed maturity securities: 12 months or less 459 $ 313,421 $ (2,683 ) 397 $ 291,048 $ (4,380 ) Greater than 12 months 112 75,638 (2,155 ) 54 32,054 (2,872 ) Total fixed maturities 571 389,059 (4,838 ) 451 323,102 (7,252 ) Equity securities: 12 months or less 65 46,654 (2,218 ) 35 20,698 (983 ) Greater than 12 months - - - - - - Total equity securities 65 46,654 (2,218 ) 35 20,698 (983 ) Total 636 $ 435,713 $ (7,056 ) 486 $ 343,800 $ (8,235 ) Unrealized losses in the Company's fixed maturity portfolio are generally the result of interest rate or foreign currency fluctuations. The Company does not intend to sell any fixed maturity securities which are in an unrealized loss position at December 31, 2017 and it is not more likely than not that the Company will have to sell any fixed maturity security before recovery of its amortized cost basis. For equity securities, the Company has evaluated the near-term prospects of the investments in relation to the severity and duration of the impairment and, based on that evaluation, the Company has the ability and intent to hold these investments for a period sufficient to allow for recovery of their fair value. Accordingly, the Company does not believe any unrealized losses represent an other-than-temporary impairment as of December 31, 2017. The fair value and the cost or amortized cost of fixed maturity investments at December 31, 2017, organized by contractual maturity, is shown below. Actual maturities may 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 $ 54,567 10.5 % $ 54,777 10.5 % Excess of one year to five years 292,755 56.1 294,698 56.6 Excess of five years to ten years 61,087 11.7 60,366 11.6 Excess of ten years 2,909 0.5 2,914 0.5 Total maturities 411,318 78.8 412,755 79.2 Asset-backed securities 110,535 21.2 108,262 20.8 $ 521,853 100.0 % $ 521,017 100.0 % Major categories of investment income for the years ended December 31 are summarized as follows: 2017 2016 2015 Interest on fixed maturities $ 15,340 $ 13,254 $ 11,663 Dividends on equity securities 4,611 3,598 3,445 Money market funds, Short-term and other 471 128 32 20,422 16,980 15,140 Investment expenses (2,327 ) (2,497 ) (2,642 ) Net investment income $ 18,095 $ 14,483 $ 12,498 2017 2016 2015 Fixed maturities: Gross gains $ 9,135 $ 11,628 $ 6,633 Gross losses (10,031 ) (14,020 ) (13,634 ) Net losses (896 ) (2,392 ) (7,001 ) Equity securities: Gross gains 10,481 28,742 21,070 Gross losses (2,368 ) (5,595 ) (13,643 ) Net gains 8,113 23,147 7,427 Limited partnerships - net gain (loss) 12,469 2,473 (1,687 ) Total net gains (losses) $ 19,686 $ 23,228 $ (1,261 ) Gain and loss activity for fixed maturity and equity security investments, as shown in the previous table, includes adjustments for other-than-temporary impairment for the years ended December 31 summarized as follows: 2017 2016 2015 Cumulative charges to income at beginning of year $ 5,060 $ 10,513 $ 7,168 Writedowns based on objective and subjective criteria 149 5,743 7,700 Recovery of prior writedowns upon sale or disposal (1,590 ) (10,606 ) (4,355 ) Net pre-tax realized gain (loss) 1,441 4,863 (3,345 ) Cumulative charges to income at end of year $ 4,209 $ 5,060 $ 10,513 There is no primary market and only a limited secondary market for the Company's investments in limited partnerships and, in most cases, the Company is prohibited from disposing of its limited partnership interests for some period of time and generally must seek approval from the applicable general partner for any such disposal. Distributions of earnings from these partnerships are largely at the sole discretion of the general partners and distributions are generally not received by the Company for many years after the earnings have been reported. The Company has a commitment to contribute up to an additional $1,404 to a limited partnership as of December 31, 2017. The Company has invested in three limited partnerships with an aggregate estimated value of $43,586 at December 31, 2017, that are managed by organizations in which two directors of the Company are executive officers, directors or owners. The Company's ownership interest in these limited partnerships was 5% for New Vernon India Fund, 37% for New Vernon Global Opportunity Fund and 23% for New Vernon Global Opportunity Fund II. During 2017, the Company withdrew $5,000 from the New Vernon India Fund and $5,000 from the New Vernon Global Opportunity Fund II which reduced our investments. These limited partnerships contributed to or (reduced) $9,549, ($971) and ($1,978), net of fees, investment gains in 2017, 2016 and 2015, respectively. During 2017, 2016 and 2015, the Company recorded management fees of $803, $777 and $749, respectively, for management of these limited partnerships. The Company utilizes the services of investment firms of which two directors of the Company are employees or partial owners. These investment firms manage equity securities and fixed maturity portfolios with an aggregate market value of approximately $24,779 at December 31, 2017. Total commissions and net fees earned by the investment firms and affiliates on these portfolios and for advice and consulting were approximately $97, $207 and $235 during 2017, 2016 and 2015, respectively. The Company's limited partnerships include one investment which primarily invests in public and private equity markets in India. This limited partnership investment's value as of December 31, 2017 and 2016 was $29,817 and $27,153, respectively. At December 31, 2017, the Company's estimated ownership interest in this limited partnership investment was approximately 5%. The Company's share of income (losses), from both realized and unrealized appreciation (losses) from this limited partnership investment was $7,665, ($1,117) and ($1,599) in 2017, 2016 and 2015, respectively. The summarized financial information of this limited partnership investment as of and for the years ended December 31 is as follows: 2017 2016 2015 Investment income (loss) $ 623 $ (5 ) $ (188 ) Partnership expenses 2,206 2,426 3,024 Net investment loss (1,583 ) (2,431 ) (3,212 ) Realized gain (loss) on investments 8,723 7,754 21,091 Unrealized appreciation (depreciation) on investments 133,807 (21,002 ) (37,482 ) Net increase (decrease) in partners' capital resulting from operations $ 140,947 $ (15,679 ) $ (19,603 ) Total assets 566,629 448,263 511,118 Total liabilities 30,976 39,988 40,335 Total partners' capital 535,653 408,275 470,783 The fair value of regulatory deposits with various insurance departments in the United States and Canada totaled $86,335 and $86,169 at December 31, 2017 and 2016, respectively. Short-term investments at December 31, 2017 included $1,000 in certificates of deposit issued by a Bermuda bank. The Company's fixed maturities are over 86% invested in investment grade fixed maturity investments. The Company has a total of $693, representing one investment, of fixed maturity investments which were originally issued with guarantees by a third party insurance company. The S&P credit rating of such investment, with consideration of the guarantee, is AA. The S&P underlying credit rating of such investment, without consideration of the guarantee, would remain AA. The Company does not have any direct exposure to any guarantor. Approximately $71,907 of fixed maturity investments (8.4% of the Company's consolidated investment portfolio) consists of non-rated bonds and bonds rated as less than investment grade at year end. These investments include a diversified portfolio of over 40 investments and have a $1,605 aggregate net |
Loss and Loss Expense Reserves
Loss and Loss Expense Reserves | 12 Months Ended |
Dec. 31, 2017 | |
Loss and Loss Expense Reserves [Abstract] | |
Loss and Loss Expense Reserves | Note C – Loss and Loss Expense Reserves Activity in the reserves for losses and loss expenses is summarized as follows. All amounts are shown net of reinsurance, unless otherwise indicated. 2017 2016 2015 Reserves, gross of reinsurance recoverable, at the beginning of the year $ 576,330 $ 513,596 $ 506,102 Reinsurance recoverable on unpaid losses at the beginning of the year 251,563 211,843 210,519 Reserves at the beginning of the year 324,767 301,753 295,583 Provision for losses and loss expenses: Claims occurring during the current year 228,303 172,645 165,812 Claims occurring during prior years 19,215 13,836 (10,062 ) Total incurred losses and loss expenses 247,518 186,481 155,750 Loss and loss expense payments: Claims occurring during the current year 67,234 54,239 56,710 Claims occurring during prior years 132,920 109,228 92,870 Total paid 200,154 163,467 149,580 Reserves at the end of the year 372,131 324,767 301,753 Reinsurance recoverable on unpaid losses at the end of the year 308,143 251,563 211,843 Reserves, gross of reinsurance recoverable, at the end of the year $ 680,274 $ 576,330 $ 513,596 The table above shows that a reserve deficiency of $19,215 developed during 2017 in the settlement of claims occurring on or before December 31, 2016, compared to a reserve deficiency of $13,836 in 2016 and a reserve savings of $10,062 in 2015. The developments for each year are 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. The $19,215 prior accident year deficiency that developed during 2017 primarily related to: (1) infrequent, but severe, transportation losses that experienced adverse development primarily during the first six months of 2017 and (2) higher than expected loss development for discontinued lines of business. This 2017 deficiency compares to a deficiency of $13,836 for 2016, which was also impacted by discontinued lines of business. Loss reserves have been reduced by estimated salvage and subrogation recoverable of approximately $7,559 and $4,151 at December 31, 2017 and 2016, respectively. The following is information about incurred and paid claims development as of December 31, 2017, net of reinsurance, as well as cumulative claim frequency and the total of incurred ‐ ‐ ‐ As of December 31, 2017 Total of Incurred- Workers' Compensation but-Not-Reported Liabilities Plus Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance Expected Number of Accident For the Years Ended December 31 (2008-2016 is Supplementary Information and Unaudited) Development on Reported Claims Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Reported Claims Per Year 2008 $ 19,833 $ 23,640 $ 24,715 $ 24,721 $ 24,855 $ 25,109 $ 23,916 $ 24,048 $ 24,352 $ 25,077 $ 661 3,656 2009 17,270 20,931 21,447 21,261 21,268 20,767 20,641 20,817 20,946 877 3,784 2010 20,644 20,111 19,400 19,300 18,849 18,344 19,195 19,541 1,096 4,222 2011 26,057 26,628 26,958 26,767 25,515 27,293 26,617 2,399 4,545 2012 23,965 25,544 24,887 24,485 25,616 27,020 3,151 4,479 2013 27,619 30,638 29,913 32,121 32,553 5,344 5,271 2014 36,768 36,968 34,009 33,427 5,848 5,394 2015 26,277 23,115 25,889 6,921 6,284 2016 35,240 29,757 9,795 6,003 2017 42,387 25,679 14,490 Total $ 283,214 $ 61,771 Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net of Reinsurance Accident For the Years Ended December 31 (2008-2016 is Supplementary Information and Unaudited) Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2008 $ 6,046 $ 13,919 $ 17,320 $ 18,943 $ 20,055 $ 20,839 $ 21,306 $ 21,883 $ 22,199 22,910 2009 4,186 10,073 13,343 15,576 16,592 17,448 18,028 18,514 18,982 2010 3,974 9,134 11,963 13,845 14,966 15,835 16,590 16,789 2011 4,916 11,912 15,973 18,884 20,617 21,622 22,569 2012 4,597 11,004 14,834 17,415 18,946 20,276 2013 4,880 12,792 18,065 21,655 23,643 2014 5,328 13,665 19,075 22,387 2015 2,918 10,128 15,020 2016 5,784 13,377 2017 6,150 Total $ 182,103 Outstanding liabilities prior to 2008 net of reinsurance 12,640 Liabilities for claims and claims adjustment expenses, net of reinsurance $ 113,751 As of December 31, 2017 Total of Incurred- Commercial Liability but-Not-Reported Liabilities Plus Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance Expected Number of Accident For the Years Ended December 31 (2008-2016 is Supplementary Information and Unaudited) Development on Reported Claims Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Reported Claims Per Year 2008 $ 34,693 $ 28,591 $ 27,311 $ 25,511 $ 23,989 $ 24,892 $ 24,902 $ 23,480 $ 23,482 $ 23,733 $ 110 1,280 2009 29,707 30,406 30,203 26,280 27,259 25,872 25,373 25,320 25,485 136 1,161 2010 31,124 22,161 21,899 19,139 20,300 19,764 19,377 19,081 96 2,384 2011 46,829 43,832 31,633 36,894 35,805 37,122 36,076 271 2,764 2012 49,743 54,269 49,743 51,367 48,708 51,475 478 3,211 2013 53,817 39,143 37,701 36,371 46,690 664 3,611 2014 49,971 52,254 52,483 52,964 1,451 3,091 2015 61,420 70,174 64,323 2,278 3,340 2016 61,638 68,974 6,725 3,581 2017 103,126 $ 43,880 4,387 Total $ 491,927 $ 56,089 Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net of Reinsurance Accident For the Years Ended December 31 (2008-2016 is Supplementary Information and Unaudited) Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2008 $ 2,612 $ 8,942 $ 15,733 $ 21,220 $ 21,396 $ 23,169 $ 23,354 $ 23,444 $ 23,500 $ 23,510 2009 928 17,880 19,718 23,521 24,866 25,066 25,114 25,125 25,199 2010 1,649 7,166 11,635 16,052 18,627 18,517 18,866 18,662 2011 1,809 11,350 23,615 30,795 33,255 34,009 35,561 2012 3,086 23,252 32,942 45,303 47,601 50,036 2013 5,167 15,772 25,270 34,481 44,865 2014 4,023 9,046 28,393 45,075 2015 10,923 27,582 49,267 2016 6,843 30,377 2017 11,415 Total $ 333,967 Outstanding liabilities prior to 2008 net of reinsurance 4,621 Liabilities for claims and claims adjustment expenses, net of reinsurance $ 162,581 As of December 31, 2017 Total of Incurred- Professional Liability Reinsurance Assumed (in runoff) but-Not-Reported Liabilities Plus Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance Expected Number of Accident For the Years Ended December 31 (2008-2016 is Supplementary Information and Unaudited) Development on Reported Claims Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Reported Claims Per Year 2008 2009 2010 $ 2,196 $ 4,277 $ 7,827 $ 7,946 $ 9,733 $ 10,740 $ 11,689 $ 11,893 $ 175 N/A 2011 10,492 8,314 9,017 9,859 10,779 12,735 12,744 290 N/A 2012 10,041 9,276 5,569 10,157 14,605 16,555 3,049 N/A 2013 14,370 13,034 11,618 17,694 23,256 4,653 N/A 2014 12,675 8,825 7,259 9,837 2,621 N/A 2015 11,638 7,859 7,147 3,290 N/A 2016 6,368 2,482 2,273 N/A 2017 - - N/A Total $ 83,914 $ 16,351 Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net of Reinsurance Accident For the Years Ended December 31 (2008-2016 is Supplementary Information and Unaudited) Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2008 2009 2010 $ 41 $ 729 $ 3,505 $ 5,844 $ 7,758 $ 9,904 $ 11,132 $ 11,334 2011 50 637 2,061 4,983 8,104 10,404 11,679 2012 103 992 2,388 5,077 8,355 11,239 2013 123 1,135 5,088 10,988 14,779 2014 723 761 2,241 3,999 2015 10 390 1,899 2016 - 5 2017 - Total $ 54,934 Outstanding liabilities prior to 2008 net of reinsurance - Liabilities for claims and claims adjustment expenses, net of reinsurance $ 28,980 The reconciliation of the net incurred and paid claims development tables to the liability for claims and claim adjustment expenses in the consolidated statement of financial position at December 31 is as follows. 2017 2016 Net outstanding liabilities Commercial Liability $ 162,581 $ 133,139 Workers' Compensation 113,751 101,883 Professional Liability Assumed 28,980 34,700 Other short-duration insurance lines 48,970 38,556 Liabilities for unpaid claims and claim adjustment expenses, net of reinsurance 354,282 308,278 Reinsurance recoverable on unpaid claims Commercial Liability 124,695 85,549 Workers' Compensation 170,394 153,847 Other short-duration insurance lines 13,053 12,167 Reinsurance recoverable on unpaid losses at the end of the year 308,142 251,563 Unallocated claims adjustment expenses 17,850 16,489 Total gross liability for unpaid claims and claims adjustment expense $ 680,274 $ 576,330 The following is supplementary information about average historical claims duration as of December 31, 2017. Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (Supplementary Information and Unaudited) Years 1 2 3 4 5 6 7 8 9 10 Commercial Liability 9.1 % 31.1 % 25.3 % 22.3 % 7.0 % 2.9 % 1.8 % 0.1 % 0.3 % 0.1 % Workers' Compensation 17.6 % 26.5 % 15.5 % 9.7 % 5.6 % 4.1 % 3.0 % 1.9 % 1.7 % 2.8 % Professional Liability Assumed 1.3 % 3.7 % 16.0 % 20.4 % 19.2 % 17.8 % 10.2 % 1.7 % Reserve methodologies for incurred but not reported losses The Company uses both standard actuarial techniques common to most insurance companies as well as proprietary techniques developed by the Company in connection with its specialty business products. For its short-tail lines of The Company also uses the loss development factor approach for its long-tail lines of business, including workers' compensation. A minimum of 15 accident years is included in the loss development triangles used to calculate link ratios and the selected loss development factors used to determine the reserves for incurred but not reported losses. Significant emphasis is placed on the use of tail factors for the Company's long-tail lines of business. For the Company's fleet transportation risks, which are covered by regularly updated reinsurance agreements and which contain wide-ranging self-insured retentions ("SIR"), traditional actuarial methods are supplemented by other methods, as described below, in consideration of the Company's exposures to loss. In situations where the Company's reinsurance structure, the insured's SIR selections, policy volume, and other factors are changing, current accident period loss exposures may not be homogenous enough with historical loss data to allow for reliable projection of future developed losses. Therefore, the Company supplements the above-described actuarial methods with loss ratio reserving techniques developed from the Company's extensive, proprietary databases to arrive at the reserve for incurred but not reported losses for the calendar/accident period under review. As losses for a given calendar/accident period develop with the passage of time, management evaluates such development on a monthly and quarterly basis and adjusts reserve factors, as necessary, to reflect current judgment with regard to the anticipated ultimate incurred losses. This process continues until all losses are settled for each period subject to this method. Claim count methodology The Company uses a claim event and coverage combination to estimate frequency. For example, a single claim event involving loss for physical damage of a vehicle and personal injury to a claimant would be considered two claims for purposes of the calculation of frequency. A single claim event causing personal injury to two claimants would be considered a single claim under the methodology. |
Reinsurance
Reinsurance | 12 Months Ended |
Dec. 31, 2017 | |
Reinsurance [Abstract] | |
Reinsurance | Note D – Reinsurance The Insurance Subsidiaries cede portions of their gross premiums written to certain other insurers under excess of loss and quota share treaties and by facultative placements. Reinsurance treaties with other companies permit the recovery of a portion of related direct losses. Management determines the amount of net exposure it is willing to accept generally on a product line basis. Certain historical treaties covering fleet transportation risks include annual deductibles which must be exceeded before the Company can recover under the terms of the treaty. The Company retains a higher percentage of the direct premium in consideration of these deductible provisions. The Company remains liable to the extent the reinsuring companies are unable to meet their obligations under reinsurance contracts. The Company also serves as an assuming reinsurer on treaties with direct writing insurance companies and, prior to June 30, 2015, under retrocessions from other reinsurers for catastrophic property coverages. Accordingly, for periods prior to that date, the occurrence of catastrophic events could have had a significant impact on the Company's operations. In addition, the Insurance Subsidiaries participate in certain mandatory residual market pools which require insurance companies to provide coverages on assigned risks. The assigned risk pools allocate participation to all insurers based upon each insurer's portion of premium writings on a state or national level. Historically, the operation of these assigned risk pools have resulted in net losses allocated to the Company, although such losses have not been material in relation to the Company's operations. The following table summarizes the impact of reinsurance ceded and assumed on the Company's net premiums written and earned for the most recent three years: Premiums Written Premiums Earned 2017 2016 2015 2017 2016 2015 Direct $ 504,033 $ 395,625 $ 366,668 $ 470,158 $ 394,679 $ 370,499 Ceded on direct (151,348 ) (131,166 ) (128,338 ) (145,201 ) (129,926 ) (128,135 ) Net direct 352,685 264,459 238,330 324,957 264,753 242,364 Assumed 704 7,379 16,885 3,188 11,344 21,533 Ceded on assumed - (86 ) (562 ) - (86 ) (562 ) Net assumed 704 7,293 16,323 3,188 11,258 20,971 Net $ 353,389 $ 271,752 $ 254,653 $ 328,145 $ 276,011 $ 263,335 Net losses and loss expenses incurred for 2017, 2016 and 2015 have been reduced by ceded reinsurance recoveries of approximately $128,086, $108,656 and $75,581, respectively. Ceded reinsurance premiums and loss recoveries for the purchase of catastrophe reinsurance coverage on the Company's net direct business were not material. Net losses and loss expenses incurred for 2017, 2016 and 2015 include approximately $5,223, $14,746 and $13,492, respectively, relating to reinsurance assumed from non-affiliated insurance or reinsurance companies. Components of reinsurance recoverable at December 31 are as follows: 2017 2016 Case unpaid losses, net of valuation allowance $ 119,615 $ 126,244 Incurred but not reported unpaid losses and loss expenses 187,163 123,819 Paid losses and loss expenses 2,206 1,760 Unearned premiums 9,347 3,201 $ 318,331 $ 255,024 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Taxes [Abstract] | |
Income Taxes | Note E - Income Taxes Deferred income taxes are calculated to account for the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company's deferred tax assets and liabilities as of December 31 are as follows: 2017 2016 Deferred tax liabilities: Unrealized gain on fixed income and equity security investments $ 15,086 $ 18,335 Deferred acquisition costs 1,804 874 Loss and loss expense reserves 2,623 1,198 Limited partnership investments 3,826 2,274 Accelerated depreciation 492 1,037 Other 1,791 1,251 Total deferred tax liabilities 25,622 24,969 Deferred tax assets: Loss and loss expense reserves 6,761 9,467 Unearned premiums discount 1,837 1,295 Other-than-temporary investment declines 815 858 Deferred compensation 885 1,097 Deferred ceding commission 627 464 Other 339 376 Total deferred tax assets 11,264 13,557 Net deferred tax liabilities $ 14,358 $ 11,412 On December 22, 2017, the U.S. Tax Act was signed into law, which lowered the U.S. corporate income tax rate from 35% to 21% effective January 1, 2018. As a result, the Company recorded a tax benefit of $9.6 million related to the re-measurement of its deferred tax assets and liabilities. The IRS has not yet published all of the detailed regulations resulting from the enactment of the U.S. Tax Act; therefore we have not completed our accounting for the tax effects, but we have made a reasonable estimate of the effects on our existing deferred tax balances at December 31, 2017. We re-measured deferred tax assets and liabilities based on the rates at which they are expected to be utilized in the future, which is generally 21%. However, we are still analyzing certain aspects of the U.S. Tax Act and refining our calculations, which could potentially affect the measurement of those balances or give rise to new deferred tax amounts. A summary of the difference between federal income tax expense computed at the statutory rate and that reported in the consolidated financial statements is as follows: 2017 2016 2015 Statutory federal income rate applied to pretax income $ 3,543 $ 15,069 $ 11,883 Tax effect of (deduction): Tax-exempt investment income (968 ) (938 ) (919 ) Change in enacted tax rates (9,572 ) - - Other (1,204 ) (22 ) (295 ) Federal income tax expense (benefit) $ (8,201 ) $ 14,109 $ 10,669 Federal income tax expense (benefit) consists of the following: 2017 2016 2015 Taxes (benefit) on pre-tax income: Current $ (4,335 ) $ 11,271 $ 12,488 Deferred (3,866 ) 2,838 (1,819 ) $ (8,201 ) $ 14,109 $ 10,669 2017 2016 2015 Limited partnerships $ 4,099 $ 503 $ (2,865 ) Discounts of loss and loss expense reserves 1,315 (114 ) 1,526 Reserves - salvage and subrogation and other 56 (1,110 ) 29 Unearned premium discount (1,767 ) 298 608 Deferred compensation (168 ) 595 (127 ) Other-than-temporary investment declines (127 ) 2,320 (1,416 ) Deferred acquisitions costs and ceding commission 1,553 (95 ) (287 ) Change in enacted tax rates (9,572 ) - - Other 745 441 713 Provision for deferred federal income tax $ (3,866 ) $ 2,838 $ (1,819 ) The Company is required to establish a valuation allowance for any portion of the gross deferred tax asset that management believes will not be realized. Management has determined that no such valuation allowance is necessary at December 31, 2017 or 2016. As of December 31, 2017, calendar years 2016, 2015 and 2014 remain subject to examination by the IRS. The Company has no uncertain tax positions as of December 31, 2017 or 2016. The Company recognizes accrued interest and penalties, if any, related to unrecognized tax benefits in income tax expense and changes in such accruals would impact the Company's effective tax rate. There were no amounts accrued for the payment of interest at December 31, 2017, 2016 and 2015. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2017 | |
Shareholders' Equity [Abstract] | |
Shareholders' Equity | Note F - Shareholders' Equity Changes in common stock outstanding and additional paid-in capital are as follows: Additional Class A Class B Paid-in Shares Amount Shares Amount Capital Balance at January 1, 2015 2,623,109 $ 112 12,356,389 $ 527 $ 51,854 Restricted stock grants - - 46,552 2 1,092 Balance at December 31, 2015 2,623,109 112 12,402,941 529 52,946 Restricted stock grants - - 57,959 3 1,340 Balance at December 31, 2016 2,623,109 112 12,460,900 532 54,286 Restricted stock grants - - 47,578 2 1,152 Repurchase of common shares - - (84,960 ) (4 ) (360 ) Balance at December 31, 2017 2,623,109 $ 112 12,423,518 $ 530 $ 55,078 The Company's Class A and Class B common stock has a stated value of approximately $.04 per share. The Company paid a total of $16,302, or $1.08 per share, in dividends during 2017, $15,803, or $1.04 per share, during 2016 and $15,003, or $1.00 per share, during 2015. On August 31, 2017, the Company's Board of Directors authorized the reinstatement of its share repurchase program for up to 2,464,209 shares of the Company's Class A or Class B common stock. Pursuant to this share repurchase program, on September 21, 2017 the Company entered into a Rule 10b5-1 plan expiring on March 5, 2018, authorizing the repurchase of up to $17.5 million of the Company's outstanding common shares, at various pricing thresholds (the "Plan"). Because repurchases under the Plan will be subject to price, market volume and timing constraints, there is no assurance as to the exact number of shares that will be repurchased, if any. The Company may amend, suspend or discontinue the share repurchase program at any time. For the year ended December 31, 2017, the Company paid $1,880 to repurchase 84,960 shares of Class B common stock at an average share price of $22.12 under the Plan. |
Other Operating Expenses
Other Operating Expenses | 12 Months Ended |
Dec. 31, 2017 | |
Other Operating Expenses [Abstract] | |
Other Operating Expenses | Note G - Other Operating Expenses Details of other operating expenses for the years ended December 31: 2017 2016 2015 Amortization of gross deferred policy acquisition costs $ 70,574 $ 51,597 $ 50,270 Other underwriting expenses 37,230 41,692 42,638 Reinsurance ceded credits (23,187 ) (33,512 ) (28,956 ) Total underwriting expenses 84,617 59,777 63,952 Operating expenses of non-insurance companies 28,977 29,685 26,621 Total other operating expenses $ 113,594 $ 89,462 $ 90,573 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. For the years ended December 31, 2017 and 2016, the Company incurred expenses of $300 and $300, respectively, related to this agreement. 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 2017, 2016 and 2015 was $674, $419 and $0, respectively. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2017 | |
Employee Benefit Plans [Abstract] | |
Employee Benefit Plans | Note H - Employee Benefit Plans The Company maintains a defined contribution 401(k) Employee Savings and Profit Sharing Plan (the "Plan") which covers nearly all employees who have completed one year of service. The Company's contributions are based on a set percentage and the contributions to the Plan for 2017, 2016 and 2015 were $2,797, $2,449 and $2,090, respectively. |
Stock Based Compensation
Stock Based Compensation | 12 Months Ended |
Dec. 31, 2017 | |
Stock Based Compensation [Abstract] | |
Stock Based Compensation | Note I - Stock Based Compensation In accordance with the terms of the 1981 Stock Purchase Plan (the "1981 Plan"), the Company is obligated to repurchase shares issued under the 1981 Plan, at a price equal to 90% of the book value of the shares at the end of the quarter immediately preceding the date of repurchase from one outside director. A limited number of shares have ever been repurchased under the 1981 Plan. At December 31, 2017, there were 46,875 shares (Class A) and 187,500 shares (Class B) outstanding which remain eligible for repurchase by the Company. Restricted Stock: The Company issues shares of restricted Class B common stock to the Company's outside directors, which serve as a portion of the annual compensation for the outside directors. The shares are distributed to the outside directors on the vesting date, one year following the date of grant. On August 31, 2017, the Company granted shares of restricted Class B common stock to a new outside director, in lieu of cash, as such director's pro-rated annual retainer compensation, which shares will vest and be distributed on May 9, 2018. The table below provides detail of the stock issuances for 2017, 2016 and 2015: Grant Date Grant Number of Shares Vesting Fair Value Date Issued Date Period Per Share 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 5/9/2017 18,183 5/9/2018 7/1/2017 - 6/30/2018 $24.20 8/31/2017 1,257 5/9/2018 8/31/2017 - 6/30/2018 $21.90 Compensation expense related to the above stock grants is recognized over the period in which the directors render the services. Director compensation expense associated with these restricted stock grants of $454, $460 and $460 was charged against income for the restricted stock awards granted in 2017, 2016 and 2015, respectively. On February 8, 2017, the Company issued 20,181 shares of restricted Class B common stock to certain of the Company's executives under the Company's Restricted Stock Compensation Plan. The shares of restricted stock represent a portion of the calendar year 2016 compensation earned by certain executives under the terms of the Company's Executive Incentive Bonus Plan. The shares of restricted stock will vest over a three-year period from the date of grant. The shares of restricted stock were valued based on the closing price of the Company's Class B common stock on February 8, 2017, the day the shares of restricted stock were granted. Each share of restricted stock was valued at $23.80 per share, representing a total value of $480. Non-vested shares of restricted stock will be forfeited should an executive's employment terminate for any reason other than death, disability, or retirement as defined by the Compensation Committee. In May 2017, the Company's Compensation Committee granted equity-based awards pursuant to the Company's Long-Term Incentive Plan (the "Long-Term Incentive Plan"), which was approved by the Company's shareholders at the 2017 Annual Meeting of Shareholders. Certain participants under the Long-Term Incentive Plan were granted performance-based equity awards ("2017 LTIP Awards"), with the number of shares of Class B common stock earned pursuant to such award determined by applying a performance matrix consisting of a measurement of the combined results of the Company's 2017 growth in net premiums earned and the Company's 2017 combined ratio. The combined ratio is calculated as a ratio of (A) losses and loss expenses incurred, plus other operating expenses, less commission and other income to (B) net premiums earned. Any 2017 LTIP Awards earned by the Company's named executive officers ("NEOs") will be paid in shares of restricted Class B common stock at the end of the 2017 annual performance period and will vest after a one-year period. Any 2017 LTIP Awards earned by non-NEOs will be paid in shares of restricted Class B common stock at the end of the 2017 annual performance period and will vest ratably over a three-year period. In addition to the 2017 LTIP Awards, in May 2017 the Company's Compensation Committee also granted Value Creation Incentive Plan awards ("VCIP Awards") to certain participants under the Long-Term Incentive Plan. The VCIP Awards are performance-based equity awards that will be earned based on the Company's cumulative operating income over a three-year performance period from January 1, 2017 through December 31, 2019 relative to an operating income goal for the period set by the Compensation Committee in March 2017. For the purpose of the VCIP Awards, cumulative operating income is equal to income before taxes excluding net realized gains (losses) on investments. Any VCIP Awards that are earned will be paid in unrestricted shares of the Company's Class B common stock at the end of the three-year performance period, but no later than March 15, 2020. No shares were issued as of December 31, 2017 with respect to either the 2017 LTIP Awards or the VCIP Awards. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2017 | |
Segment Information [Abstract] | |
Segment Information | Note J – Segment Information As previously disclosed, the Company determined that its business constituted one reportable property and casualty insurance segment as of January 1, 2017 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 property and casualty insurance segment provides multiple lines of 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 for a variety of operations outside the transportation industry. The following table summarizes segment revenues for the years ended December 31: 2017 2016 2015 Revenues: Net premiums earned $ 328,145 $ 276,011 $ 263,335 Net investment income 18,095 14,483 12,498 Commissions and other income 5,308 5,275 5,703 Net realized gains (losses) on investments 19,686 23,228 (1,261 ) Total revenues $ 371,234 $ 318,997 $ 280,275 |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note K - Earnings Per Share The following is a reconciliation of the denominators used in the calculation of basic and diluted earnings per share for the years ended December 31: 2017 2016 2015 Average shares outstanding for basic earnings per share 15,065,216 15,071,900 15,010,454 Dilutive effect of share equivalents 42,220 12,108 11,308 Average shares outstanding for diluted earnings per share 15,107,436 15,084,008 15,021,762 |
Concentrations of Credit Risk
Concentrations of Credit Risk | 12 Months Ended |
Dec. 31, 2017 | |
Concentrations of Credit Risk [Abstract] | |
Concentrations of Credit Risk | Note L - Concentrations of Credit Risk The Company writes policies of excess insurance attaching above SIRs and also writes policies that contain per-claim deductibles. Those losses and claims that fall within the SIR limits are obligations of the insured; however, the Company writes surety bonds in favor of various regulatory agencies guaranteeing the insureds' payment of claims within the SIR. Further, specified portions of losses and claims incurred under large deductible policies, while obligations of the Company, are contractually reimbursable to the Company from the insureds. The Company requires collateral from its insureds to serve as a source of reimbursement if the Company is obligated to pay claims within the SIR by reason of an insured's default or if the insured fails to reimburse the Company for deductible amounts paid by the Company. Acceptable collateral may be provided in the form of letters of credit on Company-approved banks, Company- approved marketable securities or cash. At December 31, 2017, the Company held collateral in the aggregate amount of $300,069. The amount of collateral required of an insured is determined by the financial condition of the insured, the type of obligations guaranteed by the Company, estimated reserves for incurred losses within the SIR or deductible that have been reported to the insured or the Company, estimated incurred but not reported losses, and estimated losses that are expected to occur within the SIR or deductible prior to the next collateral adjustment date. In general, the Company attempts to hold collateral equal to 100% of the ultimate losses that would be paid by or due the Company in the event of an insured's default. Periodic audits are conducted by the Company to evaluate its exposure and the collateral required. If a deficiency in collateral is noted as the result of an audit, additional collateral is requested immediately. Because collateral amounts contain numerous estimates of the Company's exposure, are adjusted only periodically and are sometimes reduced based on the superior financial condition of the insured, the amount of collateral held by the Company at a given point in time may not be sufficient to fully reimburse the Company for all of its guarantees or amounts due in the event of an insured's default. In that regard, the Company is not fully collateralized for the guarantees made for, or the deductible amounts that may be due from, FedEx Ground and certain of its subsidiaries and related entities, and in the event of their default, such default may have a material adverse impact on the Company. The Company estimates its uncollateralized exposure related to FedEx to be as much as 46% (after-tax) of shareholders' equity at December 31, 2017. The Company's balance sheet includes paid and estimated unpaid amounts recoverable from reinsurers under various agreements. These recoverables are only partially collateralized. The two largest amounts due from individual reinsurers, net of collateral and offsets, were $35,801 and $34,927 at December 31, 2017. |
Acquisition and related Goodwil
Acquisition and related Goodwill and Intangibles | 12 Months Ended |
Dec. 31, 2017 | |
Acquisition and related Goodwill and Intangibles [Abstract] | |
Acquisition and related Goodwill and Intangibles | Note M – Acquisition and related Goodwill and Intangibles On October 31, 2008, the Company purchased a commercial lines specialty insurance agency for a cash purchase price of $3,500. As part of the purchase, the Company recorded goodwill of $3,152 and intangible assets of $179. Accumulated amortization of intangible assets was $179 as of both December 31, 2017 and 2016. |
Fair Value
Fair Value | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value [Abstract] | |
Fair Value | Note N – 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 carrying amounts reported in the consolidated balance sheets for cash, accounts receivables, reinsurance recoverable, notes receivable, accounts payable and accrued expenses, income taxes payable, short-term borrowings and unearned income approximate fair value because of the short-term nature of these items. The following tables summarize fair value measurements by level for assets measured at fair value on a recurring basis: As of December 31, 2017: Description Total Level 1 Level 2 Level 3 Fixed maturities: Agency collateralized mortgage obligations $ 16,586 $ - $ 16,586 $ - Agency mortgage-backed securities 27,075 - 27,075 - Asset-backed securities 43,469 - 43,469 - Bank loans 19,488 - 19,488 - Certificates of deposit 3,135 3,135 - - Collateralized mortgage obligations 6,492 - 6,492 - Corporate securities 193,058 - 193,058 - Options embedded in convertible securities 5,291 - 5,291 - Mortgage-backed securities 24,204 - 24,204 - Municipal obligations 96,650 - 96,650 - Non-U.S. government obligations 37,394 - 37,394 - U.S. government obligations 49,011 - 49,011 - Total fixed maturities 521,853 3,135 518,718 - Equity securities: Consumer 46,578 46,578 - - Energy 10,278 10,278 - - Financial 45,470 45,470 - - Industrial 25,402 25,402 - - Technology 13,061 13,061 - - Funds (e.g. mutual funds, closed end funds, ETFs) 50,291 45,276 5,015 - Other 10,683 10,683 - - Total equity securities 201,763 196,748 5,015 - Short term 1,000 1,000 - - Cash equivalents 59,173 - 59,173 - Total $ 783,789 $ 200,883 $ 582,906 $ - 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 - - Funds (e.g. mutual funds, closed end funds, ETFs) 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 Company does not have any Level 3 fair value assets at December 31, 2017. Transfers into Level 3 during 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 years ended December 31: 2017 2016 Beginning of period balance $ 25,218 $ 16,793 Total gains or losses (realized) included in income 406 1,846 Purchases 81 5,540 Settlements (9,123 ) (8,791 ) Transfers into Level 3 144 10,202 Transfers out of Level 3 (16,726 ) (372 ) End of period balance $ - $ 25,218 Quoted market prices are obtained whenever possible. Where quoted market prices are not available, fair values are estimated using broker/dealer quotes for specific securities. These techniques are significantly affected by our 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 2017. The transfers out of Level 3 during 2017 consisted mainly of bank loans, asset-backed securities and certain mortgage-backed securities and corporate securities, and were the result of changes in the availability of market observable inputs. 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 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 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 sheet at December 31, 2017 and 2016 is as follows: 2017: Carrying Fair Value Value Level 1 Level 2 Level 3 Total Assets: Limited partnerships $ 70,806 $ - $ - $ 70,806 $ 70,806 Liabilities: Short-term borrowings 20,000 - 20,000 - 20,000 2016: Assets: Limited partnerships $ 76,469 $ - $ - $ 76,469 $ 76,469 Liabilities: Short-term borrowings 20,000 - 20,000 - 20,000 |
Quarterly Results of Operations
Quarterly Results of Operations (Unaudited) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Results of Operations (Unaudited) [Abstract] | |
Quarterly Results of Operations (Unaudited) | Note O - Quarterly Results of Operations (Unaudited) Quarterly results of operations are as follows: Results by Quarter 2017 2016 1st 2nd 3rd 4th 1st 2nd 3rd 4th Net premiums earned $ 73,974 $ 67,996 $ 89,100 $ 97,075 $ 66,909 $ 68,726 $ 71,235 $ 69,141 Net investment income 3,692 4,716 4,027 5,661 3,440 3,549 3,513 3,982 Net realized gains on investments 6,294 3,296 5,944 4,152 9,012 280 7,732 6,204 Losses and loss expenses incurred 48,599 71,754 60,673 66,492 38,623 42,666 56,827 48,366 Net income (loss) 6,756 (12,343 ) 7,434 16,476 14,112 5,969 4,001 4,864 Net income (loss) per share - diluted $ .45 $ (.82 ) $ .49 $ 1.10 $ .94 $ .40 $ .27 $ .32 |
Statutory
Statutory | 12 Months Ended |
Dec. 31, 2017 | |
Statutory [Abstract] | |
Statutory | Note P - Statutory Net income of the Insurance Subsidiaries, all of which are wholly-owned, as determined in accordance with statutory accounting practices, was $22,000, $31,647 and $25,627 for 2017, 2016 and 2015, respectively. Consolidated statutory capital and surplus for these subsidiaries was $421,663 and $399,314 at December 31, 2017 and 2016, respectively, of which $59,106 may be transferred by dividend or loan to the parent company during calendar year 2018 with proper notification to, but without approval from, regulatory authorities. State regulatory authorities prescribe calculations of the minimum amount of statutory capital and surplus necessary for each insurance company to remain authorized. These computations are referred to as Risk Based Capital ("RBC") requirements and are based on a number of complex factors taking into consideration the quality and nature of assets, the historical adequacy of recorded liabilities and the specific nature of business conducted. At December 31, 2017, the minimum statutory capital and surplus requirements of the Insurance Subsidiaries was $104,913. Actual consolidated statutory capital and surplus at December 31, 2017 exceeded this requirement by $316,750. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2017 | |
Leases [Abstract] | |
Leases | Note Q - Leases The Company leases certain computer and related equipment using noncancelable operating leases. Lease expense for 2017, 2016 and 2015 was $417, $157 and $175, respectively. At December 31, 2017, future lease payments for operating leases with initial or remaining noncancelable terms of one year or more consisted of the following: 2018 $ 297 2019 297 2020 80 2021 and thereafter 6 Total minimum payments required $ 680 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 12 Months Ended |
Dec. 31, 2017 | |
Accumulated Other Comprehensive Income [Abstract] | |
Accumulated Other Comprehensive Income | Note R – Accumulated Other Comprehensive Income A reconciliation of the components of accumulated other comprehensive income at December 31 is as follows: 2017 2016 Investments: Total unrealized gain before federal income taxes $ 71,848 $ 52,386 Deferred tax liability (25,148 ) (18,335 ) Net unrealized gains on investments 46,700 34,051 Foreign exchange adjustment: Total unrealized losses (475 ) (1,278 ) Deferred tax benefit 166 447 Net unrealized losses on foreign exchange adjustment (309 ) (831 ) Accumulated other comprehensive income $ 46,391 $ 33,220 Details of changes in net unrealized gains on investments for the years ended December 31 are as follows: 2017 2016 2015 Investments: Pre-tax holding gains (losses) on debt and equity securities arising during period $ 26,677 $ 13,259 $ (19,445 ) Less: applicable federal income taxes 9,337 4,641 (6,806 ) 17,340 8,618 (12,639 ) Pre-tax gains on debt and equity securities included in net income during period 7,217 20,755 426 Less: applicable federal income taxes 2,526 7,264 149 4,691 13,491 277 Change in unrealized gains on investments $ 12,649 $ (4,873 ) $ (12,916 ) Reconciliation of accumulated other comprehensive income and retained earnings for the years ended December 31 are as follows: 2017 2016 2015 Beginning accumulated other comprehensive income $ 33,220 $ 37,858 $ 52,230 Change in foreign exchange adjustment 522 235 (1,456 ) Change in unrealized net gains on investments 12,649 (4,873 ) (12,916 ) Ending accumulated other comprehensive income $ 46,391 $ 33,220 $ 37,858 2017 2016 2015 Beginning retained earnings $ 316,195 $ 303,053 $ 294,773 Net income 18,323 28,945 23,283 Dividends (16,302 ) (15,803 ) (15,003 ) Repurchase of common shares (1,516 ) - - Ending retained earnings $ 316,700 $ 316,195 $ 303,053 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2017 | |
Debt [Abstract] | |
Debt | Note S – 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 December 31, 2017 and 2016. At December 31, 2017, the effective interest rate was 2.65%. The Company had $20,000 remaining unused under the line of credit at December 31, 2017. These outstanding borrowings were used for general corporate purposes. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note T – Subsequent Events On February 9, 2018, the Board of Directors of Baldwin & Lyons, Inc. declared a regular quarterly dividend of $0.28 per share on the Company's Class A and Class B Common Stock. The dividend per share will be payable March 9, 2018 to shareholders of record on February 23, 2018. |
SCHEDULE I --SUMMARY OF INVESTM
SCHEDULE I --SUMMARY OF INVESTMENTS-OTHER THAN INVESTMENTS IN RELATED PARTIES | 12 Months Ended |
Dec. 31, 2017 | |
SCHEDULE I -- SUMMARY OF INVESTMENTS-OTHER THAN INVESTMENTS IN RELATED PARTIES [Abstract] | |
SCHEDULE I -- SUMMARY OF INVESTMENTS-OTHER THAN INVESTMENTS IN RELATED PARTIES | SCHEDULE I -- SUMMARY OF INVESTMENTS- OTHER THAN INVESTMENTS IN RELATED PARTIES Form 10-K - Year Ended December 31, 2017 Baldwin & Lyons, Inc. and Subsidiaries Column A Column B Column C Column D Amount At Which Shown Fair In The Balance Type of Investment Cost Value Sheet (A) (dollars in thousands) Fixed Maturities: Bonds: Agency collateralized mortgage obligations $ 15,839 $ 16,586 $ 16,586 Agency mortgage-backed securities 27,180 27,075 27,075 Asset-backed securities 42,861 43,469 43,469 Bank loans 19,271 19,488 19,488 Certificates of deposit 3,124 3,135 3,135 Collateralized mortgage obligations 6,079 6,492 6,492 Corporate securities 197,201 197,130 197,130 Mortgage-backed securities 23,656 24,204 24,204 Municipal obligations 97,059 96,650 96,650 Non-U.S. government obligations 39,189 38,613 38,613 U.S. government obligations 49,558 49,011 49,011 Total fixed maturities 521,017 521,853 521,853 Equity Securities: Common Stocks: Consumer 23,565 46,578 46,578 Energy 6,763 10,278 10,278 Financial 31,859 45,470 45,470 Industrial 8,949 25,402 25,402 Technology 5,768 13,061 13,061 Funds (e.g. mutual funds, closed end funds, ETFs) 46,177 50,291 50,291 Other 7,670 10,683 10,683 Total equity securities 130,751 201,763 201,763 Short-term: Certificates of deposit 1,000 1,000 1,000 Total short-term and other 1,000 1,000 1,000 Total investments $ 652,768 $ 724,616 $ 724,616 (A) Amounts presented above do not include investments of $59,174 classified as cash and cash equivalents in the balance sheet. |
SCHEDULE II CONDENSED FINANCIAL
SCHEDULE II CONDENSED FINANCIAL INFORMATION OF REGISTRANT | 12 Months Ended |
Dec. 31, 2017 | |
SCHEDULE II CONDENSED FINANCIAL INFORMATION OF REGISTRANT [Abstract] | |
SCHEDULE II CONDENSED FINANCIAL INFORMATION OF REGISTRANT | SCHEDULE II CONDENSED FINANCIAL INFORMATION OF REGISTRANT Form 10-K Baldwin & Lyons, Inc. Condensed Balance Sheets December 31 2017 2016 (dollars in thousands) Assets Investment in subsidiaries $ 436,879 $ 409,892 Due from affiliates 1,191 3,381 Investments other than subsidiaries: Fixed maturities 22,306 10,166 Limited partnerships 222 205 22,528 10,371 Cash and cash equivalents 26,496 14,995 Accounts receivable 6,833 7,602 Other assets 24,772 25,763 Total assets $ 518,699 $ 472,004 Liabilities and shareholders' equity Liabilities: Premiums payable $ 14,046 $ 11,973 Deposits from insureds 60,893 30,087 Short-term borrownings 20,000 20,000 Other liabilities 4,949 5,599 99,888 67,659 Shareholders' equity: Common stock: Class A 112 112 Class B 530 532 Additional paid-in capital 55,078 54,286 Unrealized net gains on investments 46,700 34,051 Foreign exchange adjustment (309 ) (831 ) Retained earnings 316,700 316,195 418,811 404,345 Total liabilities and shareholders' equity $ 518,699 $ 472,004 SCHEDULE II CONDENSED FINANCIAL INFORMATION OF REGISTRANT Form 10-K Baldwin & Lyons, Inc. Condensed Statements of Income Year Ended December 31 2017 2016 2015 (dollars in thousands) Revenue: Commissions and service fees $ 18,863 $ 27,736 $ 23,523 Cash dividends from subsidiaries 10,000 20,000 20,000 Net investment income 348 134 120 Net realized gains (losses) on investments 308 (3 ) (22 ) Other (106 ) (24 ) (17 ) 29,413 47,843 43,604 Expenses: Salary and related items 18,140 17,462 17,616 Other 9,686 10,808 7,297 27,826 28,270 24,913 Income before federal income taxes and equity in undistributed income of subsidiaries 1,587 19,573 18,691 Federal income tax benefit (2,971 ) (69 ) (350 ) 4,558 19,642 19,041 Equity in undistributed income of subsidiaries 13,765 9,303 4,242 Net income $ 18,323 $ 28,945 $ 23,283 SCHEDULE II CONDENSED FINANCIAL INFORMATION OF REGISTRANT Form 10-K Baldwin & Lyons, Inc. Condensed Statements of Comprehensive Income 2017 2016 2015 (dollars in thousands) Net income $ 18,323 $ 28,945 $ 23,283 Other comprehensive income (loss), net of tax: Unrealized net losses on securities: Unrealized holding net gains (losses) arising during the period 17,340 8,618 (12,639 ) Less: reclassification adjustment for net gains included in net income (4,691 ) (13,491 ) (277 ) Other comprehensive income (loss), net of tax 12,649 (4,873 ) (12,916 ) Foreign currency translation adjustments 522 235 (1,456 ) Other comprehensive income (loss) 13,171 (4,638 ) (14,372 ) Comprehensive income $ 31,494 $ 24,307 $ 8,911 SCHEDULE II CONDENSED FINANCIAL INFORMATION OF REGISTRANT Form 10-K Baldwin & Lyons, Inc. Condensed Statements of Cash Flows Year Ended December 31 2017 2016 2015 (dollars in thousands) Net cash provided by operating activities $ 44,998 $ 15,484 $ 21,841 Investing activities: Purchases of long-term investments (21,365 ) (4,000 ) (4,792 ) Sales or maturities of long-term investments 9,146 3,493 4,194 Net sales of short-term investments - 2,165 - Distributions from limited partnerships 298 - - Net purchases of property and equipment (3,394 ) (4,278 ) (4,921 ) Net cash used in investing activities (15,315 ) (2,620 ) (5,519 ) Financing activities: Dividends paid to shareholders (16,302 ) (15,803 ) (15,003 ) Repurchase of common shares (1,880 ) - - Net cash used in financing activities (18,182 ) (15,803 ) (15,003 ) Increase (decrease) in cash and cash equivalents 11,501 (2,939 ) 1,319 Cash and cash equivalents at beginning of year 14,995 17,934 16,615 Cash and cash equivalents at end of year $ 26,496 $ 14,995 $ 17,934 Note to Condensed Financial Statements -- Basis of Presentation The Company's investment in subsidiaries is stated at cost plus equity in the undistributed earnings of subsidiaries since the date of acquisition. The Company's share of net income of its subsidiaries is included in income using the equity method. These financial statements should be read in conjunction with the Company's consolidated financial statements. |
SCHEDULE III -- SUPPLEMENTARY I
SCHEDULE III -- SUPPLEMENTARY INSURANCE INFORMATION | 12 Months Ended |
Dec. 31, 2017 | |
SCHEDULE III -- SUPPLEMENTARY INSURANCE INFORMATION [Abstract] | |
SCHEDULE III -- SUPPLEMENTARY INSURANCE INFORMATION | SCHEDULE III -- SUPPLEMENTARY INSURANCE INFORMATION Form 10-K Baldwin & Lyons, Inc. and Subsidiaries (Dollars in thousands) Column A Column B Column C Column D Column E Column F Column G Column H Column I Column J Column K As of December 31 Year Ended December 31 Reserves for Unpaid Other Benefits, Amortization Deferred Claims Policy Claims, of Deferred Policy and Claim Claims and Net Net Losses and Policy Other Net Acquisition Adjustment Unearned Benefits Premium Investment Settlement Acquisition Operating Premiums Segment Costs Expenses Premiums Payable Earned Income Expenses Costs Expenses Written (A) (A) (A) (B) Property/Casualty Insurance 2017 $ 5,608 $ 680,274 $ 53,085 --- $ 328,145 $ 18,095 $ 247,518 $ 70,574 $ 14,043 $ 353,389 2016 1,172 576,330 21,694 --- 276,011 14,483 186,481 51,597 8,180 271,752 2015 1,443 513,596 25,291 --- 263,335 12,498 155,750 50,270 13,682 254,653 (A) Allocations of certain expenses have been made to invesetment income, settlement expenses and other operating expenses and are based on a number of assumptions and estimates. Results among these categories would change if different methods were applied. (B) Commission allowances relating to reinsurance ceded are offset against other operating expenses. |
SCHEDULE IV -- REINSURANCE
SCHEDULE IV -- REINSURANCE | 12 Months Ended |
Dec. 31, 2017 | |
SCHEDULE IV -- REINSURANCE [Abstract] | |
SCHEDULE IV -- REINSURANCE | SCHEDULE IV -- REINSURANCE Form 10-K Baldwin & Lyons, Inc. and Subsidiaries Column A Column B Column C Column D Column E Column F % of Ceded Assumed Amount Direct to Other from Other Net Assumed to Premiums Companies Companies Amount Net (dollars in thousands) Premiums Earned - Years Ended December 31: 2017 $ 470,158 $ 145,201 $ 3,188 $ 328,145 1.0 2016 394,679 130,012 11,344 276,011 4.1 2015 370,499 128,697 21,533 263,335 8.0 Note: Included in Ceded to Other Companies is $0, $86 and $562 for 2017, 2016 and 2015, respectively, relating to retrocessions associated with premiums assumed from other companies. Percentage of Amount Assumed to Net above considers the impact of this retrocession. |
SCHEDULE VI--SUPPLEMENTAL INFOR
SCHEDULE VI--SUPPLEMENTAL INFORMATION CONCERNING PROPERTY/CASUALTY INSURANCE OPERATIONS | 12 Months Ended |
Dec. 31, 2017 | |
SCHEDULE VI--SUPPLEMENTAL INFORMATION CONCERNING PROPERTY/CASUALTY INSURANCE OPERATIONS [Abstract] | |
SCHEDULE VI--SUPPLEMENTAL INFORMATION CONCERNING PROPERTY/CASUALTY INSURANCE OPERATIONS | SCHEDULE VI--SUPPLEMENTAL INFORMATION CONCERNING PROPERTY/CASUALTY INSURANCE OPERATIONS Form 10-K Baldwin & Lyons, Inc. and Subsidiaries (Dollars in thousands) Column A Column B Column C Column D Column E Column F Column G Column H Column I Column J Column K As of December 31 Year Ended December 31 Reserves Claims and Claim Amortiza- for Unpaid Discount, Adjustment Expenses tion of Deferred Claims if any Incurred Related to Deferred Paid Claims AFFILIATION Policy and Claim Deducted Net (1) (2) Policy and Claim Net WITH Acquisi- Adjustment in Unearned Earned Investment Current Prior Acquisition Adjustment Premiums REGISTRANT tion Costs Expenses Column C Premiums Premiums Income Year Years Costs Expenses Written Consolidated Property/Casualty Subsidiaries: (A) 2017 $5,608 $680,274 $- $53,085 $328,145 $18,095 $228,303 $19,215 $70,574 $200,154 $353,389 2016 1,172 576,330 - 21,694 276,011 14,483 172,645 13,836 51,597 163,467 271,752 2015 1,443 513,596 2,110 25,291 263,335 12,498 165,812 (10,062) 50,270 149,580 254,653 (A) Loss reserves on certain reinsurance assumed and permanent total disability workers' compensation claims have been discounted to present value using pretax interest rates not exceeding 3.5% through 2015. |
Summary of Significant Accoun33
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 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 year segment information throughout this Annual Report on Form 10-K was updated to conform to the current year presentation. |
Basis of Presentation | Basis of Presentation: |
Use of Estimates | Use of Estimates: |
Cash and Cash Equivalents | Cash and Cash Equivalents: |
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, 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. 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 Standard 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 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 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 20% of original or adjusted cost, and where that decline has existed for six months, the decline is treated as an other-than-temporary impairment. Additionally, 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. |
Property and Equipment | Property and Equipment: |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets: |
Reserves for Losses and Loss Expenses | Reserves for Losses and Loss Expenses: |
Recognition of Revenue and Costs | Recognition of Revenue and Costs: |
Reinsurance | Reinsurance Should impairment in the ability of a reinsurer to satisfy its obligations to the Company be determined to exist, current year operations would be charged in amounts sufficient to provide for the Company's additional liability. Such charges, when incurred, are included in other operating expenses, rather than losses and loss expenses incurred, since the inability of the Company to collect from reinsurers is a credit risk rather than a deficiency associated with the loss reserving process. The Company accounts for foreign and domestic reinsurance using the periodic method. Under the periodic method, premiums are recognized as revenue ratably over the contract term, and claims, including an estimate of claims incurred but not reported, are recognized as they occur. |
Deferred Taxes | Deferred Taxes: |
Restricted Stock | Restricted Stock: |
Earnings Per Share | Earnings Per Share: |
Comprehensive Income | Comprehensive Income: |
Fair Value Measurements | Fair Value Measurements: |
Recent Accounting Pronouncements | Recent Accounting Pronouncements: In May 2014, the FASB issued Accounting Standards Update ("ASU") 2014-09, Revenue from Contracts with Customers (Topic 606), or ASU 2014-09, 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 commission and fee income, other than that directly associated with insurance contracts, is 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 will use the modified retrospective method upon adoption in 2018. The Company has completed its evaluation of the impact this guidance will have on its consolidated financial statements and has performed a technical assessment of material customer contracts and has concluded the adoption of ASU 2014-09 will not result in any material adjustments and it will not have a material impact on the Company's consolidated financial statements. In January 2016, the FASB issued ASU 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities, or ASU 2016-01. The amendments in ASU 2016-01 change the accounting for non-consolidated equity investments that are not accounted for under the equity method of accounting by requiring changes in fair value to be recognized in income. Under current guidance, changes in fair value for investments of this nature were recognized in accumulated other comprehensive income as a component of shareholders' equity. Additionally, ASU 2016-01 simplifies the impairment assessment of equity investments without readily determinable fair values; requires entities to use the exit price when estimating the fair value of financial instruments; and modifies various presentation disclosure requirements for financial instruments. ASU 2016-01 became effective for interim and annual reporting periods beginning after December 15, 2017. The effect of this guidance will be dependent on the unrealized gains or losses associated with the Company's equity investments. Such unrealized gains or losses will be recognized upon adoption as a cumulative-effect adjustment to retained earnings with future unrealized gains or losses recognized in the statement of income. Refer to Note B for a discussion of unrealized gains and losses (before income taxes) on non-consolidated equity investments of $71,012 currently recognized in other comprehensive income (loss). 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 does not expect the adoption of ASU 2016-02 to have a material impact on the Company's consolidated financial statements. 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 the adoption of ASU 2016-13 will have on its consolidated financial statements. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. This update addresses the presentation and classification on the statement of cash flows for eight specific items, with the objective of reducing existing diversity in practice in how certain cash receipts and cash payments are presented and classified. ASU 2016-15 is effective for interim and annual reporting periods beginning after December 15, 2017, with early adoption permitted. We are currently evaluating the effects the adoption of ASU 2016-15 will have on our consolidated statements of cash flows, if any. The Company does not expect ASU 2016-18 to impact our consolidated balance sheet or consolidated statement of income. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash. This update amends ASC Topic 230 to add and clarify guidance on the classification and presentation of restricted cash in the statement of cash flows. The guidance requires entities to show the changes in the total of cash, cash equivalents, restricted cash and restricted cash equivalents in the statement of cash flows. The guidance will be applied retrospectively and is effective for annual periods beginning after December 15, 2017, and interim periods within those years, with early adoption permitted. We are currently evaluating the effects the adoption of ASU 2016-18 will have on our consolidated statements of cash flows. The Company does not expect ASU 2016-18 to impact our consolidated balance sheet or consolidated statement of income. I In February 2018, the FASB issued ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220). This ASU allows for the option to reclassify from accumulated other comprehensive income ("AOCI") to retained earnings for stranded tax effects resulting from the newly enacted federal corporate income tax rate in the Tax Cuts and Jobs Act of 2017 (the "U.S. Tax Act"), which was enacted on December 22, 2017. The legislation included a reduction to the corporate income tax rate from 35 percent to 21 percent effective January 1, 2018. The amount of the reclassification would be the difference between the historical corporate income tax rate and the newly enacted 21 percent corporate income tax rate. ASU 2018-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company is still evaluating the impacts of this standard on its consolidated financial statements but intends to make this reclassification. |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Investments [Abstract] | |
Summary of available for sale securities | The following is a summary of available for sale securities at December 31: Net Cost or Gross Gross Unrealized Fair Amortized Unrealized Unrealized Gains Value Cost Gains Losses (Losses) December 31, 2017 Fixed maturities Agency collateralized mortgage obligations $ 16,586 $ 15,839 $ 818 $ (71 ) $ 747 Agency mortgage-backed securities 27,075 27,180 47 (152 ) (105 ) Asset-backed securities 43,469 42,861 749 (141 ) 608 Bank loans 19,488 19,271 266 (49 ) 217 Certificates of deposit 3,135 3,124 11 - 11 Collateralized mortgage obligations 6,492 6,079 451 (38 ) 413 Corporate securities 198,349 198,419 1,602 (1,672 ) (70 ) Mortgage-backed securities 24,204 23,656 933 (385 ) 548 Municipal obligations 96,650 97,059 322 (731 ) (409 ) Non-U.S. government obligations 37,394 37,971 475 (1,052 ) (577 ) U.S. government obligations 49,011 49,558 - (547 ) (547 ) Total fixed maturities 521,853 521,017 5,674 (4,838 ) 836 Equity securities: Consumer 46,578 23,565 24,031 (1,018 ) 23,013 Energy 10,278 6,763 3,602 (87 ) 3,515 Financial 45,470 31,859 13,937 (326 ) 13,611 Industrial 25,402 8,949 16,793 (340 ) 16,453 Technology 13,061 5,768 7,401 (108 ) 7,293 Funds (e.g. mutual funds, closed end funds, ETFs) 50,291 46,177 4,153 (39 ) 4,114 Other 10,683 7,670 3,313 (300 ) 3,013 Total equity securities 201,763 130,751 73,230 (2,218 ) 71,012 Total $ 723,616 $ 651,768 $ 78,904 $ (7,056 ) 71,848 Applicable federal income taxes (25,148 ) Net unrealized gains - net of tax $ 46,700 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 Funds (e.g. mutual funds, closed end funds, ETFs) 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 December 31, the aggregate fair value and gross unrealized loss categorized by the duration those securities have been continuously in an unrealized loss position: 2017 2016 Number of Securities Fair Value Gross Unrealized Loss Number of Securities Fair Value Gross Unrealized Loss Fixed maturity securities: 12 months or less 459 $ 313,421 $ (2,683 ) 397 $ 291,048 $ (4,380 ) Greater than 12 months 112 75,638 (2,155 ) 54 32,054 (2,872 ) Total fixed maturities 571 389,059 (4,838 ) 451 323,102 (7,252 ) Equity securities: 12 months or less 65 46,654 (2,218 ) 35 20,698 (983 ) Greater than 12 months - - - - - - Total equity securities 65 46,654 (2,218 ) 35 20,698 (983 ) Total 636 $ 435,713 $ (7,056 ) 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 cost of fixed maturity investments at December 31, 2017, organized by contractual maturity, is shown below. Actual maturities may 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 $ 54,567 10.5 % $ 54,777 10.5 % Excess of one year to five years 292,755 56.1 294,698 56.6 Excess of five years to ten years 61,087 11.7 60,366 11.6 Excess of ten years 2,909 0.5 2,914 0.5 Total maturities 411,318 78.8 412,755 79.2 Asset-backed securities 110,535 21.2 108,262 20.8 $ 521,853 100.0 % $ 521,017 100.0 % |
Major categories of investment income | Major categories of investment income for the years ended December 31 are summarized as follows: 2017 2016 2015 Interest on fixed maturities $ 15,340 $ 13,254 $ 11,663 Dividends on equity securities 4,611 3,598 3,445 Money market funds, Short-term and other 471 128 32 20,422 16,980 15,140 Investment expenses (2,327 ) (2,497 ) (2,642 ) Net investment income $ 18,095 $ 14,483 $ 12,498 |
Realized gains (losses) on investments | Gains and losses on investments, including equity method earnings from limited partnerships, for the years ended December 31 are summarized below: 2017 2016 2015 Fixed maturities: Gross gains $ 9,135 $ 11,628 $ 6,633 Gross losses (10,031 ) (14,020 ) (13,634 ) Net losses (896 ) (2,392 ) (7,001 ) Equity securities: Gross gains 10,481 28,742 21,070 Gross losses (2,368 ) (5,595 ) (13,643 ) Net gains 8,113 23,147 7,427 Limited partnerships - net gain (loss) 12,469 2,473 (1,687 ) Total net gains (losses) $ 19,686 $ 23,228 $ (1,261 ) |
Schedule of realized gains (loss) | Gain and loss activity for fixed maturity and equity security investments, as shown in the previous table, includes adjustments for other-than-temporary impairment for the years ended December 31 summarized as follows: 2017 2016 2015 Cumulative charges to income at beginning of year $ 5,060 $ 10,513 $ 7,168 Writedowns based on objective and subjective criteria 149 5,743 7,700 Recovery of prior writedowns upon sale or disposal (1,590 ) (10,606 ) (4,355 ) Net pre-tax realized gain (loss) 1,441 4,863 (3,345 ) Cumulative charges to income at end of year $ 4,209 $ 5,060 $ 10,513 |
Financial information of significant limited partnership investment | The summarized financial information of this limited partnership investment as of and for the years ended December 31 is as follows: 2017 2016 2015 Investment income (loss) $ 623 $ (5 ) $ (188 ) Partnership expenses 2,206 2,426 3,024 Net investment loss (1,583 ) (2,431 ) (3,212 ) Realized gain (loss) on investments 8,723 7,754 21,091 Unrealized appreciation (depreciation) on investments 133,807 (21,002 ) (37,482 ) Net increase (decrease) in partners' capital resulting from operations $ 140,947 $ (15,679 ) $ (19,603 ) Total assets 566,629 448,263 511,118 Total liabilities 30,976 39,988 40,335 Total partners' capital 535,653 408,275 470,783 |
Loss and Loss Expense Reserves
Loss and Loss Expense Reserves (Tables) | 12 Months Ended |
Dec. 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 is summarized as follows. All amounts are shown net of reinsurance, unless otherwise indicated. 2017 2016 2015 Reserves, gross of reinsurance recoverable, at the beginning of the year $ 576,330 $ 513,596 $ 506,102 Reinsurance recoverable on unpaid losses at the beginning of the year 251,563 211,843 210,519 Reserves at the beginning of the year 324,767 301,753 295,583 Provision for losses and loss expenses: Claims occurring during the current year 228,303 172,645 165,812 Claims occurring during prior years 19,215 13,836 (10,062 ) Total incurred losses and loss expenses 247,518 186,481 155,750 Loss and loss expense payments: Claims occurring during the current year 67,234 54,239 56,710 Claims occurring during prior years 132,920 109,228 92,870 Total paid 200,154 163,467 149,580 Reserves at the end of the year 372,131 324,767 301,753 Reinsurance recoverable on unpaid losses at the end of the year 308,143 251,563 211,843 Reserves, gross of reinsurance recoverable, at the end of the year $ 680,274 $ 576,330 $ 513,596 |
Incurred claims development net of reinsurance | The following is information about incurred and paid claims development as of December 31, 2017, net of reinsurance, as well as cumulative claim frequency and the total of incurred ‐ ‐ ‐ As of December 31, 2017 Total of Incurred- Workers' Compensation but-Not-Reported Liabilities Plus Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance Expected Number of Accident For the Years Ended December 31 (2008-2016 is Supplementary Information and Unaudited) Development on Reported Claims Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Reported Claims Per Year 2008 $ 19,833 $ 23,640 $ 24,715 $ 24,721 $ 24,855 $ 25,109 $ 23,916 $ 24,048 $ 24,352 $ 25,077 $ 661 3,656 2009 17,270 20,931 21,447 21,261 21,268 20,767 20,641 20,817 20,946 877 3,784 2010 20,644 20,111 19,400 19,300 18,849 18,344 19,195 19,541 1,096 4,222 2011 26,057 26,628 26,958 26,767 25,515 27,293 26,617 2,399 4,545 2012 23,965 25,544 24,887 24,485 25,616 27,020 3,151 4,479 2013 27,619 30,638 29,913 32,121 32,553 5,344 5,271 2014 36,768 36,968 34,009 33,427 5,848 5,394 2015 26,277 23,115 25,889 6,921 6,284 2016 35,240 29,757 9,795 6,003 2017 42,387 25,679 14,490 Total $ 283,214 $ 61,771 Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net of Reinsurance Accident For the Years Ended December 31 (2008-2016 is Supplementary Information and Unaudited) Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2008 $ 6,046 $ 13,919 $ 17,320 $ 18,943 $ 20,055 $ 20,839 $ 21,306 $ 21,883 $ 22,199 22,910 2009 4,186 10,073 13,343 15,576 16,592 17,448 18,028 18,514 18,982 2010 3,974 9,134 11,963 13,845 14,966 15,835 16,590 16,789 2011 4,916 11,912 15,973 18,884 20,617 21,622 22,569 2012 4,597 11,004 14,834 17,415 18,946 20,276 2013 4,880 12,792 18,065 21,655 23,643 2014 5,328 13,665 19,075 22,387 2015 2,918 10,128 15,020 2016 5,784 13,377 2017 6,150 Total $ 182,103 Outstanding liabilities prior to 2008 net of reinsurance 12,640 Liabilities for claims and claims adjustment expenses, net of reinsurance $ 113,751 As of December 31, 2017 Total of Incurred- Commercial Liability but-Not-Reported Liabilities Plus Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance Expected Number of Accident For the Years Ended December 31 (2008-2016 is Supplementary Information and Unaudited) Development on Reported Claims Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Reported Claims Per Year 2008 $ 34,693 $ 28,591 $ 27,311 $ 25,511 $ 23,989 $ 24,892 $ 24,902 $ 23,480 $ 23,482 $ 23,733 $ 110 1,280 2009 29,707 30,406 30,203 26,280 27,259 25,872 25,373 25,320 25,485 136 1,161 2010 31,124 22,161 21,899 19,139 20,300 19,764 19,377 19,081 96 2,384 2011 46,829 43,832 31,633 36,894 35,805 37,122 36,076 271 2,764 2012 49,743 54,269 49,743 51,367 48,708 51,475 478 3,211 2013 53,817 39,143 37,701 36,371 46,690 664 3,611 2014 49,971 52,254 52,483 52,964 1,451 3,091 2015 61,420 70,174 64,323 2,278 3,340 2016 61,638 68,974 6,725 3,581 2017 103,126 $ 43,880 4,387 Total $ 491,927 $ 56,089 |
Incurred claims development net of reinsurance | Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net of Reinsurance Accident For the Years Ended December 31 (2008-2016 is Supplementary Information and Unaudited) Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2008 $ 2,612 $ 8,942 $ 15,733 $ 21,220 $ 21,396 $ 23,169 $ 23,354 $ 23,444 $ 23,500 $ 23,510 2009 928 17,880 19,718 23,521 24,866 25,066 25,114 25,125 25,199 2010 1,649 7,166 11,635 16,052 18,627 18,517 18,866 18,662 2011 1,809 11,350 23,615 30,795 33,255 34,009 35,561 2012 3,086 23,252 32,942 45,303 47,601 50,036 2013 5,167 15,772 25,270 34,481 44,865 2014 4,023 9,046 28,393 45,075 2015 10,923 27,582 49,267 2016 6,843 30,377 2017 11,415 Total $ 333,967 Outstanding liabilities prior to 2008 net of reinsurance 4,621 Liabilities for claims and claims adjustment expenses, net of reinsurance $ 162,581 As of December 31, 2017 Total of Incurred- Professional Liability Reinsurance Assumed (in runoff) but-Not-Reported Liabilities Plus Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance Expected Number of Accident For the Years Ended December 31 (2008-2016 is Supplementary Information and Unaudited) Development on Reported Claims Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Reported Claims Per Year 2008 2009 2010 $ 2,196 $ 4,277 $ 7,827 $ 7,946 $ 9,733 $ 10,740 $ 11,689 $ 11,893 $ 175 N/A 2011 10,492 8,314 9,017 9,859 10,779 12,735 12,744 290 N/A 2012 10,041 9,276 5,569 10,157 14,605 16,555 3,049 N/A 2013 14,370 13,034 11,618 17,694 23,256 4,653 N/A 2014 12,675 8,825 7,259 9,837 2,621 N/A 2015 11,638 7,859 7,147 3,290 N/A 2016 6,368 2,482 2,273 N/A 2017 - - N/A Total $ 83,914 $ 16,351 Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net of Reinsurance Accident For the Years Ended December 31 (2008-2016 is Supplementary Information and Unaudited) Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2008 2009 2010 $ 41 $ 729 $ 3,505 $ 5,844 $ 7,758 $ 9,904 $ 11,132 $ 11,334 2011 50 637 2,061 4,983 8,104 10,404 11,679 2012 103 992 2,388 5,077 8,355 11,239 2013 123 1,135 5,088 10,988 14,779 2014 723 761 2,241 3,999 2015 10 390 1,899 2016 - 5 2017 - Total $ 54,934 Outstanding liabilities prior to 2008 net of reinsurance - Liabilities for claims and claims adjustment expenses, net of reinsurance $ 28,980 |
Reconciliation of net incurred and paid claims development | The reconciliation of the net incurred and paid claims development tables to the liability for claims and claim adjustment expenses in the consolidated statement of financial position at December 31 is as follows. 2017 2016 Net outstanding liabilities Commercial Liability $ 162,581 $ 133,139 Workers' Compensation 113,751 101,883 Professional Liability Assumed 28,980 34,700 Other short-duration insurance lines 48,970 38,556 Liabilities for unpaid claims and claim adjustment expenses, net of reinsurance 354,282 308,278 Reinsurance recoverable on unpaid claims Commercial Liability 124,695 85,549 Workers' Compensation 170,394 153,847 Other short-duration insurance lines 13,053 12,167 Reinsurance recoverable on unpaid losses at the end of the year 308,142 251,563 Unallocated claims adjustment expenses 17,850 16,489 Total gross liability for unpaid claims and claims adjustment expense $ 680,274 $ 576,330 |
Supplementary information about average historical claims duration | The following is supplementary information about average historical claims duration as of December 31, 2017. Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (Supplementary Information and Unaudited) Years 1 2 3 4 5 6 7 8 9 10 Commercial Liability 9.1 % 31.1 % 25.3 % 22.3 % 7.0 % 2.9 % 1.8 % 0.1 % 0.3 % 0.1 % Workers' Compensation 17.6 % 26.5 % 15.5 % 9.7 % 5.6 % 4.1 % 3.0 % 1.9 % 1.7 % 2.8 % Professional Liability Assumed 1.3 % 3.7 % 16.0 % 20.4 % 19.2 % 17.8 % 10.2 % 1.7 % |
Reinsurance (Tables)
Reinsurance (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Reinsurance [Abstract] | |
Impact of reinsurance ceded and assumed on the company's net premium written and earned | The following table summarizes the impact of reinsurance ceded and assumed on the Company's net premiums written and earned for the most recent three years: Premiums Written Premiums Earned 2017 2016 2015 2017 2016 2015 Direct $ 504,033 $ 395,625 $ 366,668 $ 470,158 $ 394,679 $ 370,499 Ceded on direct (151,348 ) (131,166 ) (128,338 ) (145,201 ) (129,926 ) (128,135 ) Net direct 352,685 264,459 238,330 324,957 264,753 242,364 Assumed 704 7,379 16,885 3,188 11,344 21,533 Ceded on assumed - (86 ) (562 ) - (86 ) (562 ) Net assumed 704 7,293 16,323 3,188 11,258 20,971 Net $ 353,389 $ 271,752 $ 254,653 $ 328,145 $ 276,011 $ 263,335 |
Components of reinsurance recoverable | Components of reinsurance recoverable at December 31 are as follows: 2017 2016 Case unpaid losses, net of valuation allowance $ 119,615 $ 126,244 Incurred but not reported unpaid losses and loss expenses 187,163 123,819 Paid losses and loss expenses 2,206 1,760 Unearned premiums 9,347 3,201 $ 318,331 $ 255,024 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Taxes [Abstract] | |
Significant components of deferred tax assets and liabilities | Significant components of the Company's deferred tax assets and liabilities as of December 31 are as follows: 2017 2016 Deferred tax liabilities: Unrealized gain on fixed income and equity security investments $ 15,086 $ 18,335 Deferred acquisition costs 1,804 874 Loss and loss expense reserves 2,623 1,198 Limited partnership investments 3,826 2,274 Accelerated depreciation 492 1,037 Other 1,791 1,251 Total deferred tax liabilities 25,622 24,969 Deferred tax assets: Loss and loss expense reserves 6,761 9,467 Unearned premiums discount 1,837 1,295 Other-than-temporary investment declines 815 858 Deferred compensation 885 1,097 Deferred ceding commission 627 464 Other 339 376 Total deferred tax assets 11,264 13,557 Net deferred tax liabilities $ 14,358 $ 11,412 |
Summary of the difference between federal income taxes expense computed at the statutory rate | A summary of the difference between federal income tax expense computed at the statutory rate and that reported in the consolidated financial statements is as follows: 2017 2016 2015 Statutory federal income rate applied to pretax income $ 3,543 $ 15,069 $ 11,883 Tax effect of (deduction): Tax-exempt investment income (968 ) (938 ) (919 ) Change in enacted tax rates (9,572 ) - - Other (1,204 ) (22 ) (295 ) Federal income tax expense (benefit) $ (8,201 ) $ 14,109 $ 10,669 |
Federal income tax expense (benefit) | Federal income tax expense (benefit) consists of the following: 2017 2016 2015 Taxes (benefit) on pre-tax income: Current $ (4,335 ) $ 11,271 $ 12,488 Deferred (3,866 ) 2,838 (1,819 ) $ (8,201 ) $ 14,109 $ 10,669 |
Components of provisions for deferred federal income taxes (credits) | 2017 2016 2015 Limited partnerships $ 4,099 $ 503 $ (2,865 ) Discounts of loss and loss expense reserves 1,315 (114 ) 1,526 Reserves - salvage and subrogation and other 56 (1,110 ) 29 Unearned premium discount (1,767 ) 298 608 Deferred compensation (168 ) 595 (127 ) Other-than-temporary investment declines (127 ) 2,320 (1,416 ) Deferred acquisitions costs and ceding commission 1,553 (95 ) (287 ) Change in enacted tax rates (9,572 ) - - Other 745 441 713 Provision for deferred federal income tax $ (3,866 ) $ 2,838 $ (1,819 ) |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Shareholders' Equity [Abstract] | |
Changes in common stock outstanding and additional paid-in capital | Changes in common stock outstanding and additional paid-in capital are as follows: Additional Class A Class B Paid-in Shares Amount Shares Amount Capital Balance at January 1, 2015 2,623,109 $ 112 12,356,389 $ 527 $ 51,854 Restricted stock grants - - 46,552 2 1,092 Balance at December 31, 2015 2,623,109 112 12,402,941 529 52,946 Restricted stock grants - - 57,959 3 1,340 Balance at December 31, 2016 2,623,109 112 12,460,900 532 54,286 Restricted stock grants - - 47,578 2 1,152 Repurchase of common shares - - (84,960 ) (4 ) (360 ) Balance at December 31, 2017 2,623,109 $ 112 12,423,518 $ 530 $ 55,078 |
Other Operating Expenses (Table
Other Operating Expenses (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Other Operating Expenses [Abstract] | |
Details of other operating expenses | Details of other operating expenses for the years ended December 31: 2017 2016 2015 Amortization of gross deferred policy acquisition costs $ 70,574 $ 51,597 $ 50,270 Other underwriting expenses 37,230 41,692 42,638 Reinsurance ceded credits (23,187 ) (33,512 ) (28,956 ) Total underwriting expenses 84,617 59,777 63,952 Operating expenses of non-insurance companies 28,977 29,685 26,621 Total other operating expenses $ 113,594 $ 89,462 $ 90,573 |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Stock Based Compensation [Abstract] | |
Summary of stock issuances | The table below provides detail of the stock issuances for 2017, 2016 and 2015: Grant Date Grant Number of Shares Vesting Fair Value Date Issued Date Period Per Share 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 5/9/2017 18,183 5/9/2018 7/1/2017 - 6/30/2018 $24.20 8/31/2017 1,257 5/9/2018 8/31/2017 - 6/30/2018 $21.90 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Segment Information [Abstract] | |
Summary of segment revenues | The following table summarizes segment revenues for the years ended December 31: 2017 2016 2015 Revenues: Net premiums earned $ 328,145 $ 276,011 $ 263,335 Net investment income 18,095 14,483 12,498 Commissions and other income 5,308 5,275 5,703 Net realized gains (losses) on investments 19,686 23,228 (1,261 ) Total revenues $ 371,234 $ 318,997 $ 280,275 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Reconciliation of the denominators used in the calculation of basic and diluted earnings per share | The following is a reconciliation of the denominators used in the calculation of basic and diluted earnings per share for the years ended December 31: 2017 2016 2015 Average shares outstanding for basic earnings per share 15,065,216 15,071,900 15,010,454 Dilutive effect of share equivalents 42,220 12,108 11,308 Average shares outstanding for diluted earnings per share 15,107,436 15,084,008 15,021,762 |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended |
Dec. 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 December 31, 2017: Description Total Level 1 Level 2 Level 3 Fixed maturities: Agency collateralized mortgage obligations $ 16,586 $ - $ 16,586 $ - Agency mortgage-backed securities 27,075 - 27,075 - Asset-backed securities 43,469 - 43,469 - Bank loans 19,488 - 19,488 - Certificates of deposit 3,135 3,135 - - Collateralized mortgage obligations 6,492 - 6,492 - Corporate securities 193,058 - 193,058 - Options embedded in convertible securities 5,291 - 5,291 - Mortgage-backed securities 24,204 - 24,204 - Municipal obligations 96,650 - 96,650 - Non-U.S. government obligations 37,394 - 37,394 - U.S. government obligations 49,011 - 49,011 - Total fixed maturities 521,853 3,135 518,718 - Equity securities: Consumer 46,578 46,578 - - Energy 10,278 10,278 - - Financial 45,470 45,470 - - Industrial 25,402 25,402 - - Technology 13,061 13,061 - - Funds (e.g. mutual funds, closed end funds, ETFs) 50,291 45,276 5,015 - Other 10,683 10,683 - - Total equity securities 201,763 196,748 5,015 - Short term 1,000 1,000 - - Cash equivalents 59,173 - 59,173 - Total $ 783,789 $ 200,883 $ 582,906 $ - 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 - - Funds (e.g. mutual funds, closed end funds, ETFs) 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 years ended December 31: 2017 2016 Beginning of period balance $ 25,218 $ 16,793 Total gains or losses (realized) included in income 406 1,846 Purchases 81 5,540 Settlements (9,123 ) (8,791 ) Transfers into Level 3 144 10,202 Transfers out of Level 3 (16,726 ) (372 ) End of period balance $ - $ 25,218 |
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 sheet at December 31, 2017 and 2016 is as follows: 2017: Carrying Fair Value Value Level 1 Level 2 Level 3 Total Assets: Limited partnerships $ 70,806 $ - $ - $ 70,806 $ 70,806 Liabilities: Short-term borrowings 20,000 - 20,000 - 20,000 2016: Assets: Limited partnerships $ 76,469 $ - $ - $ 76,469 $ 76,469 Liabilities: Short-term borrowings 20,000 - 20,000 - 20,000 |
Quarterly Results of Operatio44
Quarterly Results of Operations (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Results of Operations (Unaudited) [Abstract] | |
Quarterly results of operations | Quarterly results of operations are as follows: Results by Quarter 2017 2016 1st 2nd 3rd 4th 1st 2nd 3rd 4th Net premiums earned $ 73,974 $ 67,996 $ 89,100 $ 97,075 $ 66,909 $ 68,726 $ 71,235 $ 69,141 Net investment income 3,692 4,716 4,027 5,661 3,440 3,549 3,513 3,982 Net realized gains on investments 6,294 3,296 5,944 4,152 9,012 280 7,732 6,204 Losses and loss expenses incurred 48,599 71,754 60,673 66,492 38,623 42,666 56,827 48,366 Net income (loss) 6,756 (12,343 ) 7,434 16,476 14,112 5,969 4,001 4,864 Net income (loss) per share - diluted $ .45 $ (.82 ) $ .49 $ 1.10 $ .94 $ .40 $ .27 $ .32 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Leases [Abstract] | |
Future lease payments for operating leases with initial or remaining noncancelable terms of one year or more | At December 31, 2017, future lease payments for operating leases with initial or remaining noncancelable terms of one year or more consisted of the following: 2018 $ 297 2019 297 2020 80 2021 and thereafter 6 Total minimum payments required $ 680 |
Accumulated Other Comprehensi46
Accumulated Other Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Accumulated Other Comprehensive Income [Abstract] | |
Reconciliation of components of accumulated other comprehensive income | A reconciliation of the components of accumulated other comprehensive income at December 31 is as follows: 2017 2016 Investments: Total unrealized gain before federal income taxes $ 71,848 $ 52,386 Deferred tax liability (25,148 ) (18,335 ) Net unrealized gains on investments 46,700 34,051 Foreign exchange adjustment: Total unrealized losses (475 ) (1,278 ) Deferred tax benefit 166 447 Net unrealized losses on foreign exchange adjustment (309 ) (831 ) Accumulated other comprehensive income $ 46,391 $ 33,220 |
Changes in net unrealized gains on investments | Details of changes in net unrealized gains on investments for the years ended December 31 are as follows: 2017 2016 2015 Investments: Pre-tax holding gains (losses) on debt and equity securities arising during period $ 26,677 $ 13,259 $ (19,445 ) Less: applicable federal income taxes 9,337 4,641 (6,806 ) 17,340 8,618 (12,639 ) Pre-tax gains on debt and equity securities included in net income during period 7,217 20,755 426 Less: applicable federal income taxes 2,526 7,264 149 4,691 13,491 277 Change in unrealized gains on investments $ 12,649 $ (4,873 ) $ (12,916 ) |
Reconciliation of accumulated other comprehensive income and retained earnings | Reconciliation of accumulated other comprehensive income and retained earnings for the years ended December 31 are as follows: 2017 2016 2015 Beginning accumulated other comprehensive income $ 33,220 $ 37,858 $ 52,230 Change in foreign exchange adjustment 522 235 (1,456 ) Change in unrealized net gains on investments 12,649 (4,873 ) (12,916 ) Ending accumulated other comprehensive income $ 46,391 $ 33,220 $ 37,858 2017 2016 2015 Beginning retained earnings $ 316,195 $ 303,053 $ 294,773 Net income 18,323 28,945 23,283 Dividends (16,302 ) (15,803 ) (15,003 ) Repurchase of common shares (1,516 ) - - Ending retained earnings $ 316,700 $ 316,195 $ 303,053 |
Summary of Significant Accoun47
Summary of Significant Accounting Policies (Details) - Segment | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Summary of Significant Accounting Policies [Abstract] | |||
Number of reportable segments | 1 | 2 | |
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 | ||
Period of decline on the cost of additional equity securities that will be considered other-than-temporary impairment | 1 year | ||
Income Tax Disclosure [Line Items] | |||
Corporate income tax rate | 35.00% | ||
Plan [Member] | |||
Income Tax Disclosure [Line Items] | |||
Corporate income tax rate | 21.00% |
Investments (Details)
Investments (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017USD ($)DirectorSecurityInvestment | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($)Security | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2017USD ($)DirectorSecurityPartnershipInvestment | Dec. 31, 2016USD ($)Security | Dec. 31, 2015USD ($) | |
Net Investment Income [Line Items] | |||||||||||
Investment Income | $ 20,422 | $ 16,980 | $ 15,140 | ||||||||
Investment expenses | (2,327) | (2,497) | (2,642) | ||||||||
Net investment income | 18,095 | 14,483 | 12,498 | ||||||||
Available-for-sale Securities, Fair Value to Amortized Cost Basis [Abstract] | |||||||||||
Fair value | $ 723,616 | $ 611,849 | 723,616 | 611,849 | |||||||
Cost or amortized cost | 651,768 | 559,463 | 651,768 | 559,463 | |||||||
Gross unrealized gains | 78,904 | 60,621 | 78,904 | 60,621 | |||||||
Gross unrealized losses | (7,056) | (8,235) | (7,056) | (8,235) | |||||||
Net unrealized gains (losses) | $ 71,848 | $ 52,386 | 71,848 | 52,386 | |||||||
Applicable federal income taxes | (25,148) | (18,335) | |||||||||
Net unrealized gains - net of tax | $ 46,700 | $ 34,051 | |||||||||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | |||||||||||
Number of securities, total | Security | 636 | 486 | 636 | 486 | |||||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | |||||||||||
Fair value, total | $ 435,713 | $ 343,800 | $ 435,713 | $ 343,800 | |||||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses [Abstract] | |||||||||||
Gross unrealized loss, total | (7,056) | (8,235) | (7,056) | (8,235) | |||||||
Gain and Loss on Investment [Abstract] | |||||||||||
Limited partnerships - net gain (loss) | 12,469 | 2,473 | (1,687) | ||||||||
Total net gains (losses) | 4,152 | $ 5,944 | $ 3,296 | $ 6,294 | 6,204 | $ 7,732 | $ 280 | $ 9,012 | 19,686 | 23,228 | (1,261) |
Adjustments for other-than-temporary impairment [Roll Forward] | |||||||||||
Cumulative charges to income at beginning of year | $ 5,060 | $ 10,513 | 5,060 | 10,513 | 7,168 | ||||||
Writedowns based on objective and subjective criteria | 149 | 5,743 | 7,700 | ||||||||
Recovery of prior writedowns upon sale or disposal | (1,590) | (10,606) | (4,355) | ||||||||
Net pre-tax realized gain (loss) | 1,441 | 4,863 | (3,345) | ||||||||
Cumulative charges to income at end of year | 4,209 | 5,060 | 4,209 | 5,060 | 10,513 | ||||||
Limited Partners' Capital Account [Line Items] | |||||||||||
Market value of equity and fixed maturity securities portfolio managed by broker dealers | 24,779 | 24,779 | |||||||||
Total commissions and net fees earned by broker dealers and affiliates | 97 | 207 | 235 | ||||||||
Summarized financial information of significant limited partnership investments [Abstract] | |||||||||||
Total assets | 1,357,016 | 1,154,137 | 1,357,016 | 1,154,137 | |||||||
Total liabilities | 938,205 | 749,792 | 938,205 | 749,792 | |||||||
Total partners' capital | 43,586 | 44,038 | 43,586 | 44,038 | |||||||
Regulatory deposits with various insurance departments in United States and Canada, fair value | 86,335 | 86,169 | 86,335 | 86,169 | |||||||
Time certificate of deposit included in short-term investments | 1,000 | $ 1,000 | |||||||||
Percentage of fixed maturities invested in investment grade fixed maturity | 86.00% | ||||||||||
Total fixed maturity investments | $ 693 | $ 693 | |||||||||
Number of different investments in fixed maturity | Investment | 1 | 1 | |||||||||
Fixed maturity investment below investment grade | $ 71,907 | $ 71,907 | |||||||||
Percentage of fixed maturity investment to total invested assets | 8.40% | ||||||||||
Number of investments in diversified portfolio including catastrophe bonds | Investment | 40 | 40 | |||||||||
Net unrealized loss position of diversified portfolio | $ 1,605 | ||||||||||
Directors [Member] | |||||||||||
Limited Partners' Capital Account [Line Items] | |||||||||||
Number of company employees employed by investment firm | Director | 2 | 2 | |||||||||
Limited Partnership [Member] | |||||||||||
Limited Partners' Capital Account [Line Items] | |||||||||||
Commitment to make additional contributions to various limited partnerships | $ 1,404 | $ 1,404 | |||||||||
Number of investments of the partnership | Partnership | 3 | ||||||||||
Aggregate estimated value in limited partnership | 43,586 | $ 43,586 | |||||||||
Number of directors that are executive officers, directors, and owners of the organization managing the limited partnership | Director | 2 | ||||||||||
Investment gains (losses), net of fees | $ 9,549 | (971) | $ 9,549 | (971) | (1,978) | ||||||
Management fees | $ 803 | 777 | 749 | ||||||||
Number of significant investments in public and private equity market in India | Investment | 1 | 1 | |||||||||
Significant investment in public and private equity markets in India, value | $ 29,817 | 27,153 | $ 29,817 | 27,153 | |||||||
Estimated ownership interest in significant limited partnership investment | 5.00% | ||||||||||
Earnings from limited partnership investment | $ 7,665 | (1,117) | (1,599) | ||||||||
Summarized financial information of significant limited partnership investments [Abstract] | |||||||||||
Investment income (loss) | 623 | (5) | (188) | ||||||||
Partnership expenses | 2,206 | 2,426 | 3,024 | ||||||||
Net investment loss | (1,583) | (2,431) | (3,212) | ||||||||
Realized gain (loss) on investments | 8,723 | 7,754 | 21,091 | ||||||||
Unrealized appreciation (depreciation) on investments | 133,807 | (21,002) | 133,807 | (21,002) | (37,482) | ||||||
Net increase (decrease) in partners' capital resulting from operations | 140,947 | (15,679) | (19,603) | ||||||||
Total assets | 566,629 | 448,263 | 566,629 | 448,263 | 511,118 | ||||||
Total liabilities | 30,976 | 39,988 | 30,976 | 39,988 | 40,335 | ||||||
Total partners' capital | $ 535,653 | 408,275 | $ 535,653 | 408,275 | 470,783 | ||||||
Limited Partnership [Member] | New Vernon India Fund [Member] | |||||||||||
Limited Partners' Capital Account [Line Items] | |||||||||||
Ownership interest in limited partnership | 5.00% | 5.00% | |||||||||
Withdrew from fund | $ 5,000 | ||||||||||
Limited Partnership [Member] | New Vernon Global Opportunity Fund [Member] | |||||||||||
Limited Partners' Capital Account [Line Items] | |||||||||||
Ownership interest in limited partnership | 37.00% | 37.00% | |||||||||
Limited Partnership [Member] | New Vernon Global Opportunity Fund II [Member] | |||||||||||
Limited Partners' Capital Account [Line Items] | |||||||||||
Ownership interest in limited partnership | 23.00% | 23.00% | |||||||||
Withdrew from fund | $ 5,000 | ||||||||||
Agency Collateralized Mortgage Obligations [Member] | |||||||||||
Available-for-sale Debt Securities, Amortized Cost Basis [Abstract] | |||||||||||
Fair value | $ 16,586 | 6,171 | 16,586 | 6,171 | |||||||
Cost or amortized cost | 15,839 | 6,000 | 15,839 | 6,000 | |||||||
Gross unrealized gains | 818 | 171 | 818 | 171 | |||||||
Gross unrealized losses | (71) | 0 | (71) | 0 | |||||||
Net unrealized gains (losses) | 747 | 171 | 747 | 171 | |||||||
Available-for-sale Securities, Debt Maturities, Fair Value [Abstract] | |||||||||||
Total, Fair Value | 16,586 | 6,171 | 16,586 | 6,171 | |||||||
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis [Abstract] | |||||||||||
Cost or amortized cost | 15,839 | 6,000 | 15,839 | 6,000 | |||||||
Agency Mortgage Backed Securities [Member] | |||||||||||
Available-for-sale Debt Securities, Amortized Cost Basis [Abstract] | |||||||||||
Fair value | 27,075 | 4,770 | 27,075 | 4,770 | |||||||
Cost or amortized cost | 27,180 | 4,751 | 27,180 | 4,751 | |||||||
Gross unrealized gains | 47 | 57 | 47 | 57 | |||||||
Gross unrealized losses | (152) | (38) | (152) | (38) | |||||||
Net unrealized gains (losses) | (105) | 19 | (105) | 19 | |||||||
Available-for-sale Securities, Debt Maturities, Fair Value [Abstract] | |||||||||||
Total, Fair Value | 27,075 | 4,770 | 27,075 | 4,770 | |||||||
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis [Abstract] | |||||||||||
Cost or amortized cost | 27,180 | 4,751 | 27,180 | 4,751 | |||||||
Asset-backed Securities [Member] | |||||||||||
Available-for-sale Debt Securities, Amortized Cost Basis [Abstract] | |||||||||||
Fair value | 43,469 | 45,183 | 43,469 | 45,183 | |||||||
Cost or amortized cost | 42,861 | 45,207 | 42,861 | 45,207 | |||||||
Gross unrealized gains | 749 | 458 | 749 | 458 | |||||||
Gross unrealized losses | (141) | (482) | (141) | (482) | |||||||
Net unrealized gains (losses) | 608 | (24) | 608 | (24) | |||||||
Available-for-sale Securities, Debt Maturities, Fair Value [Abstract] | |||||||||||
Total, Fair Value | 43,469 | 45,183 | 43,469 | 45,183 | |||||||
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis [Abstract] | |||||||||||
Cost or amortized cost | 42,861 | 45,207 | 42,861 | 45,207 | |||||||
Bank Loans [Member] | |||||||||||
Available-for-sale Debt Securities, Amortized Cost Basis [Abstract] | |||||||||||
Fair value | 19,488 | 10,349 | 19,488 | 10,349 | |||||||
Cost or amortized cost | 19,271 | 10,222 | 19,271 | 10,222 | |||||||
Gross unrealized gains | 266 | 149 | 266 | 149 | |||||||
Gross unrealized losses | (49) | (22) | (49) | (22) | |||||||
Net unrealized gains (losses) | 217 | 127 | 217 | 127 | |||||||
Available-for-sale Securities, Debt Maturities, Fair Value [Abstract] | |||||||||||
Total, Fair Value | 19,488 | 10,349 | 19,488 | 10,349 | |||||||
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis [Abstract] | |||||||||||
Cost or amortized cost | 19,271 | 10,222 | 19,271 | 10,222 | |||||||
Certificates of Deposit [Member] | |||||||||||
Available-for-sale Debt Securities, Amortized Cost Basis [Abstract] | |||||||||||
Fair value | 3,135 | 3,117 | 3,135 | 3,117 | |||||||
Cost or amortized cost | 3,124 | 3,126 | 3,124 | 3,126 | |||||||
Gross unrealized gains | 11 | 0 | 11 | 0 | |||||||
Gross unrealized losses | 0 | (9) | 0 | (9) | |||||||
Net unrealized gains (losses) | 11 | (9) | 11 | (9) | |||||||
Available-for-sale Securities, Debt Maturities, Fair Value [Abstract] | |||||||||||
Total, Fair Value | 3,135 | 3,117 | 3,135 | 3,117 | |||||||
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis [Abstract] | |||||||||||
Cost or amortized cost | 3,124 | 3,126 | 3,124 | 3,126 | |||||||
Collateralized Mortgage Obligations [Member] | |||||||||||
Available-for-sale Debt Securities, Amortized Cost Basis [Abstract] | |||||||||||
Fair value | 6,492 | 9,104 | 6,492 | 9,104 | |||||||
Cost or amortized cost | 6,079 | 9,096 | 6,079 | 9,096 | |||||||
Gross unrealized gains | 451 | 290 | 451 | 290 | |||||||
Gross unrealized losses | (38) | (282) | (38) | (282) | |||||||
Net unrealized gains (losses) | 413 | 8 | 413 | 8 | |||||||
Available-for-sale Securities, Debt Maturities, Fair Value [Abstract] | |||||||||||
Total, Fair Value | 6,492 | 9,104 | 6,492 | 9,104 | |||||||
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis [Abstract] | |||||||||||
Cost or amortized cost | 6,079 | 9,096 | 6,079 | 9,096 | |||||||
Corporate Securities [Member] | |||||||||||
Available-for-sale Debt Securities, Amortized Cost Basis [Abstract] | |||||||||||
Fair value | 198,349 | 142,683 | 198,349 | 142,683 | |||||||
Cost or amortized cost | 198,419 | 143,356 | 198,419 | 143,356 | |||||||
Gross unrealized gains | 1,602 | 1,643 | 1,602 | 1,643 | |||||||
Gross unrealized losses | (1,672) | (2,316) | (1,672) | (2,316) | |||||||
Net unrealized gains (losses) | (70) | (673) | (70) | (673) | |||||||
Available-for-sale Securities, Debt Maturities, Fair Value [Abstract] | |||||||||||
Total, Fair Value | 198,349 | 142,683 | 198,349 | 142,683 | |||||||
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis [Abstract] | |||||||||||
Cost or amortized cost | 198,419 | 143,356 | 198,419 | 143,356 | |||||||
Mortgage-backed Securities [Member] | |||||||||||
Available-for-sale Debt Securities, Amortized Cost Basis [Abstract] | |||||||||||
Fair value | 24,204 | 24,571 | 24,204 | 24,571 | |||||||
Cost or amortized cost | 23,656 | 23,904 | 23,656 | 23,904 | |||||||
Gross unrealized gains | 933 | 1,132 | 933 | 1,132 | |||||||
Gross unrealized losses | (385) | (465) | (385) | (465) | |||||||
Net unrealized gains (losses) | 548 | 667 | 548 | 667 | |||||||
Available-for-sale Securities, Debt Maturities, Fair Value [Abstract] | |||||||||||
Total, Fair Value | 24,204 | 24,571 | 24,204 | 24,571 | |||||||
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis [Abstract] | |||||||||||
Cost or amortized cost | 23,656 | 23,904 | 23,656 | 23,904 | |||||||
Municipal Obligations [Member] | |||||||||||
Available-for-sale Debt Securities, Amortized Cost Basis [Abstract] | |||||||||||
Fair value | 96,650 | 129,335 | 96,650 | 129,335 | |||||||
Cost or amortized cost | 97,059 | 130,204 | 97,059 | 130,204 | |||||||
Gross unrealized gains | 322 | 391 | 322 | 391 | |||||||
Gross unrealized losses | (731) | (1,260) | (731) | (1,260) | |||||||
Net unrealized gains (losses) | (409) | (869) | (409) | (869) | |||||||
Available-for-sale Securities, Debt Maturities, Fair Value [Abstract] | |||||||||||
Total, Fair Value | 96,650 | 129,335 | 96,650 | 129,335 | |||||||
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis [Abstract] | |||||||||||
Cost or amortized cost | 97,059 | 130,204 | 97,059 | 130,204 | |||||||
Non-U.S. Government Obligations [Member] | |||||||||||
Available-for-sale Debt Securities, Amortized Cost Basis [Abstract] | |||||||||||
Fair value | 37,394 | 24,681 | 37,394 | 24,681 | |||||||
Cost or amortized cost | 37,971 | 26,461 | 37,971 | 26,461 | |||||||
Gross unrealized gains | 475 | 230 | 475 | 230 | |||||||
Gross unrealized losses | (1,052) | (2,010) | (1,052) | (2,010) | |||||||
Net unrealized gains (losses) | (577) | (1,780) | (577) | (1,780) | |||||||
Available-for-sale Securities, Debt Maturities, Fair Value [Abstract] | |||||||||||
Total, Fair Value | 37,394 | 24,681 | 37,394 | 24,681 | |||||||
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis [Abstract] | |||||||||||
Cost or amortized cost | 37,971 | 26,461 | 37,971 | 26,461 | |||||||
U.S. Government Obligations [Member] | |||||||||||
Available-for-sale Debt Securities, Amortized Cost Basis [Abstract] | |||||||||||
Fair value | 49,011 | 91,940 | 49,011 | 91,940 | |||||||
Cost or amortized cost | 49,558 | 92,234 | 49,558 | 92,234 | |||||||
Gross unrealized gains | 0 | 74 | 0 | 74 | |||||||
Gross unrealized losses | (547) | (368) | (547) | (368) | |||||||
Net unrealized gains (losses) | (547) | (294) | (547) | (294) | |||||||
Available-for-sale Securities, Debt Maturities, Fair Value [Abstract] | |||||||||||
Total, Fair Value | 49,011 | 91,940 | 49,011 | 91,940 | |||||||
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis [Abstract] | |||||||||||
Cost or amortized cost | 49,558 | 92,234 | 49,558 | 92,234 | |||||||
Total Fixed Maturities [Member] | |||||||||||
Available-for-sale Debt Securities, Amortized Cost Basis [Abstract] | |||||||||||
Fair value | 521,853 | 491,904 | 521,853 | 491,904 | |||||||
Cost or amortized cost | 521,017 | 494,561 | 521,017 | 494,561 | |||||||
Gross unrealized gains | 5,674 | 4,595 | 5,674 | 4,595 | |||||||
Gross unrealized losses | (4,838) | (7,252) | (4,838) | (7,252) | |||||||
Net unrealized gains (losses) | $ 836 | $ (2,657) | $ 836 | $ (2,657) | |||||||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | |||||||||||
Number of Securities 12 months or less | Security | 459 | 397 | 459 | 397 | |||||||
Number of securities, Greater than 12 months | Security | 112 | 54 | 112 | 54 | |||||||
Number of securities, total | Security | 571 | 451 | 571 | 451 | |||||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | |||||||||||
Fair value, 12 months or less | $ 313,421 | $ 291,048 | $ 313,421 | $ 291,048 | |||||||
Fair value, Greater than 12 months | 75,638 | 32,054 | 75,638 | 32,054 | |||||||
Fair value, total | 389,059 | 323,102 | 389,059 | 323,102 | |||||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses [Abstract] | |||||||||||
Gross unrealized loss, less than 12 months | (2,683) | (4,380) | (2,683) | (4,380) | |||||||
Gross unrealized loss, 12 months or longer | (2,155) | (2,872) | (2,155) | (2,872) | |||||||
Gross unrealized loss, total | (4,838) | (7,252) | (4,838) | (7,252) | |||||||
Available-for-sale Securities, Debt Maturities, Fair Value [Abstract] | |||||||||||
One year or less, Fair Value | 54,567 | 54,567 | |||||||||
Excess of one year to five years, Fair Value | 292,755 | 292,755 | |||||||||
Excess of five years to ten years, Fair Value | 61,087 | 61,087 | |||||||||
Excess of ten years, Fair Value | 2,909 | 2,909 | |||||||||
Total contractual maturities, Fair Value | 411,318 | 411,318 | |||||||||
Asset-backed securities, Fair Value | 110,535 | 110,535 | |||||||||
Total, Fair Value | $ 521,853 | 491,904 | $ 521,853 | 491,904 | |||||||
Percentage of Available for sale Securities, Debt Maturities, Fair Value [Abstract] | |||||||||||
One year or less, Fair Value | 10.50% | 10.50% | |||||||||
Excess of one year to five years, Fair Value | 56.10% | 56.10% | |||||||||
Excess of five years to ten years, Fair Value | 11.70% | 11.70% | |||||||||
Excess of ten years, Fair Value | 0.50% | 0.50% | |||||||||
Total maturities, Fair Value | 78.80% | 78.80% | |||||||||
Asset-backed securities, Fair Value | 21.20% | 21.20% | |||||||||
Total, Fair Value | 100.00% | 100.00% | |||||||||
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis [Abstract] | |||||||||||
One year or less, Cost or Amortized Cost | $ 54,777 | $ 54,777 | |||||||||
Excess of one year to five years, Cost or Amortized Cost | 294,698 | 294,698 | |||||||||
Excess of five years to ten years, Cost or Amortized Cost | 60,366 | 60,366 | |||||||||
Excess of ten years, Cost or Amortized Cost | 2,914 | 2,914 | |||||||||
Total contractual maturities, Cost or Amortized Cost | 412,755 | 412,755 | |||||||||
Asset-backed securities, Cost or Amortized Cost | 108,262 | 108,262 | |||||||||
Cost or amortized cost | $ 521,017 | 494,561 | $ 521,017 | 494,561 | |||||||
Percentage of Available for sale Securities, Debt Maturities, Amortized Cost Basis, Fiscal Year Maturity [Abstract] | |||||||||||
One year or less, Cost or Amortized Cost | 10.50% | 10.50% | |||||||||
Excess of one year to five years, Cost or Amortized Cost | 56.60% | 56.60% | |||||||||
Excess of five years to ten years, Cost or Amortized Cost | 11.60% | 11.60% | |||||||||
Excess of ten years, Cost or Amortized Cost | 0.50% | 0.50% | |||||||||
Total maturities, Cost or Amortized Cost | 79.20% | 79.20% | |||||||||
Asset-backed securities, Cost or Amortized Cost | 20.80% | 20.80% | |||||||||
Cost or amortized cost | 100.00% | 100.00% | |||||||||
Gain and Loss on Investment [Abstract] | |||||||||||
Gross gains | $ 9,135 | 11,628 | 6,633 | ||||||||
Gross losses | (10,031) | (14,020) | (13,634) | ||||||||
Net losses | (896) | (2,392) | (7,001) | ||||||||
Consumer [Member] | |||||||||||
Available-for-sale Equity Securities, Amortized Cost Basis [Abstract] | |||||||||||
Fair value | $ 46,578 | 32,576 | 46,578 | 32,576 | |||||||
Cost or amortized cost | 23,565 | 15,231 | 23,565 | 15,231 | |||||||
Gross unrealized gains | 24,031 | 17,656 | 24,031 | 17,656 | |||||||
Gross unrealized losses | (1,018) | (311) | (1,018) | (311) | |||||||
Net unrealized gains (losses) | 23,013 | 17,345 | 23,013 | 17,345 | |||||||
Energy [Member] | |||||||||||
Available-for-sale Equity Securities, Amortized Cost Basis [Abstract] | |||||||||||
Fair value | 10,278 | 12,842 | 10,278 | 12,842 | |||||||
Cost or amortized cost | 6,763 | 5,641 | 6,763 | 5,641 | |||||||
Gross unrealized gains | 3,602 | 7,203 | 3,602 | 7,203 | |||||||
Gross unrealized losses | (87) | (2) | (87) | (2) | |||||||
Net unrealized gains (losses) | 3,515 | 7,201 | 3,515 | 7,201 | |||||||
Financial [Member] | |||||||||||
Available-for-sale Equity Securities, Amortized Cost Basis [Abstract] | |||||||||||
Fair value | 45,470 | 31,186 | 45,470 | 31,186 | |||||||
Cost or amortized cost | 31,859 | 22,417 | 31,859 | 22,417 | |||||||
Gross unrealized gains | 13,937 | 8,998 | 13,937 | 8,998 | |||||||
Gross unrealized losses | (326) | (229) | (326) | (229) | |||||||
Net unrealized gains (losses) | 13,611 | 8,769 | 13,611 | 8,769 | |||||||
Industrial [Member] | |||||||||||
Available-for-sale Equity Securities, Amortized Cost Basis [Abstract] | |||||||||||
Fair value | 25,402 | 21,145 | 25,402 | 21,145 | |||||||
Cost or amortized cost | 8,949 | 6,239 | 8,949 | 6,239 | |||||||
Gross unrealized gains | 16,793 | 15,098 | 16,793 | 15,098 | |||||||
Gross unrealized losses | (340) | (192) | (340) | (192) | |||||||
Net unrealized gains (losses) | 16,453 | 14,906 | 16,453 | 14,906 | |||||||
Technology [Member] | |||||||||||
Available-for-sale Equity Securities, Amortized Cost Basis [Abstract] | |||||||||||
Fair value | 13,061 | 8,858 | 13,061 | 8,858 | |||||||
Cost or amortized cost | 5,768 | 4,117 | 5,768 | 4,117 | |||||||
Gross unrealized gains | 7,401 | 4,769 | 7,401 | 4,769 | |||||||
Gross unrealized losses | (108) | (28) | (108) | (28) | |||||||
Net unrealized gains (losses) | 7,293 | 4,741 | 7,293 | 4,741 | |||||||
Funds (e.g. mutual funds, closed end funds, ETFs) [Member] | |||||||||||
Available-for-sale Equity Securities, Amortized Cost Basis [Abstract] | |||||||||||
Fair value | 50,291 | 6,995 | 50,291 | 6,995 | |||||||
Cost or amortized cost | 46,177 | 6,930 | 46,177 | 6,930 | |||||||
Gross unrealized gains | 4,153 | 121 | 4,153 | 121 | |||||||
Gross unrealized losses | (39) | (56) | (39) | (56) | |||||||
Net unrealized gains (losses) | 4,114 | 65 | 4,114 | 65 | |||||||
Other [Member] | |||||||||||
Available-for-sale Equity Securities, Amortized Cost Basis [Abstract] | |||||||||||
Fair value | 10,683 | 6,343 | 10,683 | 6,343 | |||||||
Cost or amortized cost | 7,670 | 4,327 | 7,670 | 4,327 | |||||||
Gross unrealized gains | 3,313 | 2,181 | 3,313 | 2,181 | |||||||
Gross unrealized losses | (300) | (165) | (300) | (165) | |||||||
Net unrealized gains (losses) | 3,013 | 2,016 | 3,013 | 2,016 | |||||||
Total Equity Securities [Member] | |||||||||||
Available-for-sale Equity Securities, Amortized Cost Basis [Abstract] | |||||||||||
Fair value | 201,763 | 119,945 | 201,763 | 119,945 | |||||||
Cost or amortized cost | 130,751 | 64,902 | 130,751 | 64,902 | |||||||
Gross unrealized gains | 73,230 | 56,026 | 73,230 | 56,026 | |||||||
Gross unrealized losses | (2,218) | (983) | (2,218) | (983) | |||||||
Net unrealized gains (losses) | $ 71,012 | $ 55,043 | $ 71,012 | $ 55,043 | |||||||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | |||||||||||
Number of Securities 12 months or less | Security | 65 | 35 | 65 | 35 | |||||||
Number of securities, Greater than 12 months | Security | 0 | 0 | 0 | 0 | |||||||
Number of securities, total | Security | 65 | 35 | 65 | 35 | |||||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | |||||||||||
Fair value, 12 months or less | $ 46,654 | $ 20,698 | $ 46,654 | $ 20,698 | |||||||
Fair value, Greater than 12 months | 0 | 0 | 0 | 0 | |||||||
Fair value, total | 46,654 | 20,698 | 46,654 | 20,698 | |||||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses [Abstract] | |||||||||||
Gross unrealized loss, less than 12 months | (2,218) | (983) | (2,218) | (983) | |||||||
Gross unrealized loss, 12 months or longer | 0 | 0 | 0 | 0 | |||||||
Gross unrealized loss, total | $ (2,218) | $ (983) | (2,218) | (983) | |||||||
Gain and Loss on Investment [Abstract] | |||||||||||
Gross gains | 10,481 | 28,742 | 21,070 | ||||||||
Gross losses | (2,368) | (5,595) | (13,643) | ||||||||
Net losses | 8,113 | 23,147 | 7,427 | ||||||||
Total Fixed Maturities [Member] | |||||||||||
Net Investment Income [Line Items] | |||||||||||
Investment Income | 15,340 | 13,254 | 11,663 | ||||||||
Dividends on Equity Securities [Member] | |||||||||||
Net Investment Income [Line Items] | |||||||||||
Investment Income | 4,611 | 3,598 | 3,445 | ||||||||
Money Market Funds, Short term and Other [Member] | |||||||||||
Net Investment Income [Line Items] | |||||||||||
Investment Income | $ 471 | $ 128 | $ 32 |
Loss and Loss Expense Reserves,
Loss and Loss Expense Reserves, Activity in Reserves for Losses and Major Components (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Activity in the reserve for losses and loss expenses [Roll Forward] | |||
Reserves, gross of reinsurance recoverable, at the beginning of the year | $ 576,330 | $ 513,596 | $ 506,102 |
Reinsurance recoverable on unpaid losses at the beginning of the year | 251,563 | 211,843 | 210,519 |
Reserves at the beginning of the year | 324,767 | 301,753 | 295,583 |
Provision for losses and loss expenses [Abstract] | |||
Claims occurring during the current year | 228,303 | 172,645 | 165,812 |
Claims occurring during prior years | 19,215 | 13,836 | (10,062) |
Total incurred losses and loss expenses | 247,518 | 186,481 | 155,750 |
Loss and loss expense payments [Abstract] | |||
Claims occurring during the current year | 67,234 | 54,239 | 56,710 |
Claims occurring during prior years | 132,920 | 109,228 | 92,870 |
Total paid | 200,154 | 163,467 | 149,580 |
Reserves at the end of the year | 372,131 | 324,767 | 301,753 |
Reinsurance recoverable on unpaid losses at the end of the year | 308,143 | 251,563 | 211,843 |
Liability for Unpaid Claims and Claims Adjustment Expense | 680,274 | 576,330 | $ 513,596 |
Salvage and Subrogation Recoveries [Abstract] | |||
Estimated salvage and subrogation recoverable | $ 7,559 | $ 4,151 |
Loss and Loss Expense Reserve50
Loss and Loss Expense Reserves, Incurred Claims Development (Details) $ in Thousands | Dec. 31, 2017USD ($)Claim | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2012USD ($) | Dec. 31, 2011USD ($) | Dec. 31, 2010USD ($) | Dec. 31, 2009USD ($) | Dec. 31, 2008USD ($) |
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Liabilities for claims and claims adjustment expenses, net of reinsurance | $ 354,282 | $ 308,278 | ||||||||
Workers' Compensation [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 283,214 | |||||||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | 61,771 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net of reinsurance | 182,103 | |||||||||
Outstanding liabilities prior to 2008 net of reinsurance | 12,640 | |||||||||
Liabilities for claims and claims adjustment expenses, net of reinsurance | 113,751 | 101,883 | ||||||||
Commercial Liability [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 491,927 | |||||||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | 56,089 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net of reinsurance | 333,967 | |||||||||
Outstanding liabilities prior to 2008 net of reinsurance | 4,621 | |||||||||
Liabilities for claims and claims adjustment expenses, net of reinsurance | 162,581 | 133,139 | ||||||||
Professional Liability Reinsurance Assumed [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 83,914 | |||||||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | 16,351 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net of reinsurance | 54,934 | |||||||||
Outstanding liabilities prior to 2008 net of reinsurance | 0 | |||||||||
Liabilities for claims and claims adjustment expenses, net of reinsurance | 28,980 | 34,700 | ||||||||
Accident Year 2008 [Member] | Workers' Compensation [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 25,077 | 24,352 | $ 24,048 | $ 23,916 | $ 25,109 | $ 24,855 | $ 24,721 | $ 24,715 | $ 23,640 | $ 19,833 |
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 661 | |||||||||
Number of reported claims per year | Claim | 3,656 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net of reinsurance | $ 22,910 | 22,199 | 21,883 | 21,306 | 20,839 | 20,055 | 18,943 | 17,320 | 13,919 | 6,046 |
Accident Year 2008 [Member] | Commercial Liability [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 23,733 | 23,482 | 23,480 | 24,902 | 24,892 | 23,989 | 25,511 | 27,311 | 28,591 | 34,693 |
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 110 | |||||||||
Number of reported claims per year | Claim | 1,280 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net of reinsurance | $ 23,510 | 23,500 | 23,444 | 23,354 | 23,169 | 21,396 | 21,220 | 15,733 | 8,942 | $ 2,612 |
Accident Year 2009 [Member] | Workers' Compensation [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 20,946 | 20,817 | 20,641 | 20,767 | 21,268 | 21,261 | 21,447 | 20,931 | 17,270 | |
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 877 | |||||||||
Number of reported claims per year | Claim | 3,784 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net of reinsurance | $ 18,982 | 18,514 | 18,028 | 17,448 | 16,592 | 15,576 | 13,343 | 10,073 | 4,186 | |
Accident Year 2009 [Member] | Commercial Liability [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 25,485 | 25,320 | 25,373 | 25,872 | 27,259 | 26,280 | 30,203 | 30,406 | 29,707 | |
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 136 | |||||||||
Number of reported claims per year | Claim | 1,161 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net of reinsurance | $ 25,199 | 25,125 | 25,114 | 25,066 | 24,866 | 23,521 | 19,718 | 17,880 | $ 928 | |
Accident Year 2010 [Member] | Workers' Compensation [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 19,541 | 19,195 | 18,344 | 18,849 | 19,300 | 19,400 | 20,111 | 20,644 | ||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 1,096 | |||||||||
Number of reported claims per year | Claim | 4,222 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net of reinsurance | $ 16,789 | 16,590 | 15,835 | 14,966 | 13,845 | 11,963 | 9,134 | 3,974 | ||
Accident Year 2010 [Member] | Commercial Liability [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 19,081 | 19,377 | 19,764 | 20,300 | 19,139 | 21,899 | 22,161 | 31,124 | ||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 96 | |||||||||
Number of reported claims per year | Claim | 2,384 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net of reinsurance | $ 18,662 | 18,866 | 18,517 | 18,627 | 16,052 | 11,635 | 7,166 | 1,649 | ||
Accident Year 2010 [Member] | Professional Liability Reinsurance Assumed [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 11,893 | 11,689 | 10,740 | 9,733 | 7,946 | 7,827 | 4,277 | 2,196 | ||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | 175 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net of reinsurance | 11,334 | 11,132 | 9,904 | 7,758 | 5,844 | 3,505 | 729 | $ 41 | ||
Accident Year 2011 [Member] | Workers' Compensation [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 26,617 | 27,293 | 25,515 | 26,767 | 26,958 | 26,628 | 26,057 | |||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 2,399 | |||||||||
Number of reported claims per year | Claim | 4,545 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net of reinsurance | $ 22,569 | 21,622 | 20,617 | 18,884 | 15,973 | 11,912 | 4,916 | |||
Accident Year 2011 [Member] | Commercial Liability [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 36,076 | 37,122 | 35,805 | 36,894 | 31,633 | 43,832 | 46,829 | |||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 271 | |||||||||
Number of reported claims per year | Claim | 2,764 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net of reinsurance | $ 35,561 | 34,009 | 33,255 | 30,795 | 23,615 | 11,350 | 1,809 | |||
Accident Year 2011 [Member] | Professional Liability Reinsurance Assumed [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 12,744 | 12,735 | 10,779 | 9,859 | 9,017 | 8,314 | 10,492 | |||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | 290 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net of reinsurance | 11,679 | 10,404 | 8,104 | 4,983 | 2,061 | 637 | $ 50 | |||
Accident Year 2012 [Member] | Workers' Compensation [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 27,020 | 25,616 | 24,485 | 24,887 | 25,544 | 23,965 | ||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 3,151 | |||||||||
Number of reported claims per year | Claim | 4,479 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net of reinsurance | $ 20,276 | 18,946 | 17,415 | 14,834 | 11,004 | 4,597 | ||||
Accident Year 2012 [Member] | Commercial Liability [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 51,475 | 48,708 | 51,367 | 49,743 | 54,269 | 49,743 | ||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 478 | |||||||||
Number of reported claims per year | Claim | 3,211 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net of reinsurance | $ 50,036 | 47,601 | 45,303 | 32,942 | 23,252 | 3,086 | ||||
Accident Year 2012 [Member] | Professional Liability Reinsurance Assumed [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 16,555 | 14,605 | 10,157 | 5,569 | 9,276 | 10,041 | ||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | 3,049 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net of reinsurance | 11,239 | 8,355 | 5,077 | 2,388 | 992 | $ 103 | ||||
Accident Year 2013 [Member] | Workers' Compensation [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 32,553 | 32,121 | 29,913 | 30,638 | 27,619 | |||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 5,344 | |||||||||
Number of reported claims per year | Claim | 5,271 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net of reinsurance | $ 23,643 | 21,655 | 18,065 | 12,792 | 4,880 | |||||
Accident Year 2013 [Member] | Commercial Liability [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 46,690 | 36,371 | 37,701 | 39,143 | 53,817 | |||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 664 | |||||||||
Number of reported claims per year | Claim | 3,611 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net of reinsurance | $ 44,865 | 34,481 | 25,270 | 15,772 | 5,167 | |||||
Accident Year 2013 [Member] | Professional Liability Reinsurance Assumed [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 23,256 | 17,694 | 11,618 | 13,034 | 14,370 | |||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | 4,653 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net of reinsurance | 14,779 | 10,988 | 5,088 | 1,135 | $ 123 | |||||
Accident Year 2014 [Member] | Workers' Compensation [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 33,427 | 34,009 | 36,968 | 36,768 | ||||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 5,848 | |||||||||
Number of reported claims per year | Claim | 5,394 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net of reinsurance | $ 22,387 | 19,075 | 13,665 | 5,328 | ||||||
Accident Year 2014 [Member] | Commercial Liability [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 52,964 | 52,483 | 52,254 | 49,971 | ||||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 1,451 | |||||||||
Number of reported claims per year | Claim | 3,091 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net of reinsurance | $ 45,075 | 28,393 | 9,046 | 4,023 | ||||||
Accident Year 2014 [Member] | Professional Liability Reinsurance Assumed [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 9,837 | 7,259 | 8,825 | 12,675 | ||||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | 2,621 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net of reinsurance | 3,999 | 2,241 | 761 | $ 723 | ||||||
Accident Year 2015 [Member] | Workers' Compensation [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 25,889 | 23,115 | 26,277 | |||||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 6,921 | |||||||||
Number of reported claims per year | Claim | 6,284 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net of reinsurance | $ 15,020 | 10,128 | 2,918 | |||||||
Accident Year 2015 [Member] | Commercial Liability [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 64,323 | 70,174 | 61,420 | |||||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 2,278 | |||||||||
Number of reported claims per year | Claim | 3,340 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net of reinsurance | $ 49,267 | 27,582 | 10,923 | |||||||
Accident Year 2015 [Member] | Professional Liability Reinsurance Assumed [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 7,147 | 7,859 | 11,638 | |||||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | 3,290 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net of reinsurance | 1,899 | 390 | $ 10 | |||||||
Accident Year 2016 [Member] | Workers' Compensation [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 29,757 | 35,240 | ||||||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 9,795 | |||||||||
Number of reported claims per year | Claim | 6,003 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net of reinsurance | $ 13,377 | 5,784 | ||||||||
Accident Year 2016 [Member] | Commercial Liability [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 68,974 | 61,638 | ||||||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 6,725 | |||||||||
Number of reported claims per year | Claim | 3,581 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net of reinsurance | $ 30,377 | 6,843 | ||||||||
Accident Year 2016 [Member] | Professional Liability Reinsurance Assumed [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 2,482 | 6,368 | ||||||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | 2,273 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net of reinsurance | 5 | $ 0 | ||||||||
Accident Year 2017 [Member] | Workers' Compensation [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 42,387 | |||||||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 25,679 | |||||||||
Number of reported claims per year | Claim | 14,490 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net of reinsurance | $ 6,150 | |||||||||
Accident Year 2017 [Member] | Commercial Liability [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 103,126 | |||||||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 43,880 | |||||||||
Number of reported claims per year | Claim | 4,387 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net of reinsurance | $ 11,415 | |||||||||
Accident Year 2017 [Member] | Professional Liability Reinsurance Assumed [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 0 | |||||||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | 0 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net of reinsurance | $ 0 |
Loss and Loss Expense Reserve51
Loss and Loss Expense Reserves, Incurred Paid Claims Reconciliation (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Net outstanding liabilities [Abstract] | ||
Liabilities for unpaid claims and claim adjustment expenses, net of reinsurance | $ 354,282 | $ 308,278 |
Reinsurance recoverable on unpaid claims [Abstract] | ||
Reinsurance recoverable on unpaid losses | 308,142 | 251,563 |
Unallocated claims adjustment expenses | 17,850 | 16,489 |
Total gross liability for unpaid claims and claims adjustment expense | 680,274 | 576,330 |
Workers' Compensation [Member] | ||
Net outstanding liabilities [Abstract] | ||
Liabilities for unpaid claims and claim adjustment expenses, net of reinsurance | 113,751 | 101,883 |
Reinsurance recoverable on unpaid claims [Abstract] | ||
Reinsurance recoverable on unpaid losses | 170,394 | 153,847 |
Commercial Liability [Member] | ||
Net outstanding liabilities [Abstract] | ||
Liabilities for unpaid claims and claim adjustment expenses, net of reinsurance | 162,581 | 133,139 |
Reinsurance recoverable on unpaid claims [Abstract] | ||
Reinsurance recoverable on unpaid losses | 124,695 | 85,549 |
Professional Liability Assumed [Member] | ||
Net outstanding liabilities [Abstract] | ||
Liabilities for unpaid claims and claim adjustment expenses, net of reinsurance | 28,980 | 34,700 |
Other Short-duration Insurance Lines [Member] | ||
Net outstanding liabilities [Abstract] | ||
Liabilities for unpaid claims and claim adjustment expenses, net of reinsurance | 48,970 | 38,556 |
Reinsurance recoverable on unpaid claims [Abstract] | ||
Reinsurance recoverable on unpaid losses | $ 13,053 | $ 12,167 |
Loss and Loss Expense Reserve52
Loss and Loss Expense Reserves, Average Historical Claims Duration (Details) | 12 Months Ended |
Dec. 31, 2017Quarteryr | |
Minimum [Member] | |
Reserve Methodologies for Incurred But Not Reported Losses [Abstract] | |
Number of running accident quarters used | Quarter | 12 |
Number of accident years included in loss development triangles | yr | 15 |
Workers' Compensation [Member] | |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance [Abstract] | |
Year One | 17.60% |
Year Two | 26.50% |
Year Three | 15.50% |
Year Four | 9.70% |
Year Five | 5.60% |
Year Six | 4.10% |
Year Seven | 3.00% |
Year Eight | 1.90% |
Year Nine | 1.70% |
Year Ten | 2.80% |
Professional Liability Assumed [Member] | |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance [Abstract] | |
Year One | 1.30% |
Year Two | 3.70% |
Year Three | 16.00% |
Year Four | 20.40% |
Year Five | 19.20% |
Year Six | 17.80% |
Year Seven | 10.20% |
Year Eight | 1.70% |
Commercial Liability [Member] | |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance [Abstract] | |
Year One | 9.10% |
Year Two | 31.10% |
Year Three | 25.30% |
Year Four | 22.30% |
Year Five | 7.00% |
Year Six | 2.90% |
Year Seven | 1.80% |
Year Eight | 0.10% |
Year Nine | 0.30% |
Year Ten | 0.10% |
Reinsurance (Details)
Reinsurance (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Premiums Written [Abstract] | |||||||||||
Direct | $ 504,033 | $ 395,625 | $ 366,668 | ||||||||
Ceded on direct | (151,348) | (131,166) | (128,338) | ||||||||
Net direct | 352,685 | 264,459 | 238,330 | ||||||||
Assumed | 704 | 7,379 | 16,885 | ||||||||
Ceded on assumed | 0 | (86) | (562) | ||||||||
Net assumed | 704 | 7,293 | 16,323 | ||||||||
Net | 353,389 | 271,752 | 254,653 | ||||||||
Premium Earned [Abstract] | |||||||||||
Direct | 470,158 | 394,679 | 370,499 | ||||||||
Ceded on direct | (145,201) | (129,926) | (128,135) | ||||||||
Net direct | 324,957 | 264,753 | 242,364 | ||||||||
Assumed | 3,188 | 11,344 | 21,533 | ||||||||
Ceded on assumed | 0 | (86) | (562) | ||||||||
Net assumed | 3,188 | 11,258 | 20,971 | ||||||||
Net | $ 97,075 | $ 89,100 | $ 67,996 | $ 73,974 | $ 69,141 | $ 71,235 | $ 68,726 | $ 66,909 | 328,145 | 276,011 | 263,335 |
Net losses and loss expenses incurred reduced by ceded reinsurance recoveries | 128,086 | 108,656 | 75,581 | ||||||||
Net losses and loss expense incurred from reinsurance assumed from non-affiliates | 5,223 | 14,746 | $ 13,492 | ||||||||
Components of reinsurance recoverable [Abstract] | |||||||||||
Case unpaid losses, net of valuation allowance | 119,615 | 126,244 | 119,615 | 126,244 | |||||||
Incurred but not reported unpaid losses and loss expenses | 187,163 | 123,819 | 187,163 | 123,819 | |||||||
Paid losses and loss expenses | 2,206 | 1,760 | 2,206 | 1,760 | |||||||
Unearned premiums | 9,347 | 3,201 | 9,347 | 3,201 | |||||||
Reinsurance recoverable | $ 318,331 | $ 255,024 | $ 318,331 | $ 255,024 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Deferred tax liabilities [Abstract] | ||||
Unrealized gain on fixed income and equity security investments | $ 15,086 | $ 18,335 | ||
Deferred acquisition costs | 1,804 | 874 | ||
Loss and loss expense reserves | 2,623 | 1,198 | ||
Limited partnership investments | 3,826 | 2,274 | ||
Accelerated depreciation | 492 | 1,037 | ||
Other | 1,791 | 1,251 | ||
Total deferred tax liabilities | 25,622 | 24,969 | ||
Deferred tax assets [Abstract] | ||||
Loss and loss expense reserves | 6,761 | 9,467 | ||
Unearned premiums discount | 1,837 | 1,295 | ||
Other-than-temporary investment declines | 815 | 858 | ||
Deferred compensation | 885 | 1,097 | ||
Deferred ceding commission | 627 | 464 | ||
Other | 339 | 376 | ||
Total deferred tax assets | 11,264 | 13,557 | ||
Net deferred tax liabilities | $ 14,358 | 11,412 | ||
Income Tax Disclosure [Line Items] | ||||
Corporate income tax rate | 35.00% | |||
Tax benefit related to remeasurement of deferred tax assets and liabilities | $ 9,600 | |||
Summary of the difference between federal income tax expense computed at statutory rate [Abstract] | ||||
Statutory federal income rate applied to pretax income | 3,543 | 15,069 | $ 11,883 | |
Tax effect of (deduction) [Abstract] | ||||
Tax-exempt investment income | (968) | (938) | (919) | |
Change in enacted tax rates | (9,572) | 0 | 0 | |
Other | (1,204) | (22) | (295) | |
Federal income tax expense (benefit) | (8,201) | 14,109 | 10,669 | |
Taxes (benefit) on pre-tax income [Abstract] | ||||
Current | (4,335) | 11,271 | 12,488 | |
Deferred | (3,866) | 2,838 | (1,819) | |
Federal income tax expense (benefit) | (8,201) | 14,109 | 10,669 | |
Components of the provisions for deferred federal income taxes (credits) [Abstract] | ||||
Limited partnerships | 4,099 | 503 | (2,865) | |
Discounts of loss and loss expense reserves | 1,315 | (114) | 1,526 | |
Reserves - salvage and subrogation and other | 56 | (1,110) | 29 | |
Unearned premium discount | (1,767) | 298 | 608 | |
Deferred compensation | (168) | 595 | (127) | |
Other-than-temporary investment declines | (127) | 2,320 | (1,416) | |
Deferred acquisitions costs and ceding commission | 1,553 | (95) | (287) | |
Change in enacted tax rates | (9,572) | 0 | 0 | |
Other | 745 | 441 | 713 | |
Provision for deferred federal income tax | (3,866) | 2,838 | (1,819) | |
Deferred tax assets, valuation allowance | 0 | 0 | ||
Uncertain tax positions | 0 | 0 | ||
Accrued interest | $ 0 | $ 0 | $ 0 | |
Plan [Member] | ||||
Income Tax Disclosure [Line Items] | ||||
Corporate income tax rate | 21.00% |
Shareholders' Equity (Details)
Shareholders' Equity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Sep. 21, 2017 | Aug. 31, 2017 | |
Amount [Abstract] | |||||
Repurchase of common shares | $ (1,880) | $ 0 | $ 0 | ||
Dividends paid to shareholders | $ 16,302 | $ 15,803 | $ 15,003 | ||
Cash dividends paid (in dollars per share) | $ 1.08 | $ 1.04 | $ 1 | ||
Stock repurchase program, shares authorized (in shares) | 2,464,209 | ||||
Stock repurchase program, authorized amount | $ 17,500 | ||||
Repurchase of common shares amount paid | $ 1,880 | $ 0 | $ 0 | ||
Average share price (in dollars per share) | $ 22.12 | ||||
Class A [Member] | |||||
Shares [Abstract] | |||||
Balance, Beginning period (in shares) | 2,623,109 | ||||
Balance, Period end (in shares) | 2,623,109 | 2,623,109 | |||
Amount [Abstract] | |||||
Stated value of common stock (in dollars per share) | $ 0.04 | ||||
Class B [Member] | |||||
Shares [Abstract] | |||||
Balance, Beginning period (in shares) | 12,460,900 | ||||
Balance, Period end (in shares) | 12,423,518 | 12,460,900 | |||
Amount [Abstract] | |||||
Stated value of common stock (in dollars per share) | $ 0.04 | ||||
Common Stock [Member] | Class A [Member] | |||||
Shares [Abstract] | |||||
Balance, Beginning period (in shares) | 2,623,109 | 2,623,109 | 2,623,109 | ||
Restricted stock grants (in shares) | 0 | 0 | 0 | ||
Repurchase of common shares (in shares) | 0 | ||||
Balance, Period end (in shares) | 2,623,109 | 2,623,109 | 2,623,109 | ||
Amount [Abstract] | |||||
Balance, Beginning period | $ 112 | $ 112 | $ 112 | ||
Restricted stock grants | 0 | 0 | 0 | ||
Repurchase of common shares | 0 | ||||
Balance, Period end | $ 112 | $ 112 | $ 112 | ||
Common Stock [Member] | Class B [Member] | |||||
Shares [Abstract] | |||||
Balance, Beginning period (in shares) | 12,460,900 | 12,402,941 | 12,356,389 | ||
Restricted stock grants (in shares) | 47,578 | 57,959 | 46,552 | ||
Repurchase of common shares (in shares) | (84,960) | ||||
Balance, Period end (in shares) | 12,423,518 | 12,460,900 | 12,402,941 | ||
Amount [Abstract] | |||||
Balance, Beginning period | $ 532 | $ 529 | $ 527 | ||
Restricted stock grants | 2 | 3 | 2 | ||
Repurchase of common shares | (4) | ||||
Balance, Period end | 530 | 532 | 529 | ||
Additional Paid-in Capital [Member] | |||||
Amount [Abstract] | |||||
Balance, Beginning period | 54,286 | 52,946 | 51,854 | ||
Restricted stock grants | 1,152 | 1,340 | 1,092 | ||
Repurchase of common shares | (360) | ||||
Balance, Period end | $ 55,078 | $ 54,286 | $ 52,946 |
Other Operating Expenses (Detai
Other Operating Expenses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Other Operating Expenses [Abstract] | |||
Amortization of gross deferred policy acquisition costs | $ 70,574 | $ 51,597 | $ 50,270 |
Other underwriting expenses | 37,230 | 41,692 | 42,638 |
Reinsurance ceded credits | (23,187) | (33,512) | (28,956) |
Total underwriting expenses | 84,617 | 59,777 | 63,952 |
Operating expenses of non-insurance companies | 28,977 | 29,685 | 26,621 |
Total other operating expenses | 113,594 | 89,462 | 90,573 |
Director [Member] | Consulting Contract [Member] | |||
Related Party Transaction [Line Items] | |||
Annual fee | 300 | ||
Incurred expenses | 300 | 300 | |
Director [Member] | Brokerage Agreement [Member] | |||
Related Party Transaction [Line Items] | |||
Total commission expense | $ 674 | $ 419 | $ 0 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - 401(k) Employee Savings and Profit Sharing Plan [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Requisite service period | 1 year | ||
Company's contribution to the plan | $ 2,797 | $ 2,449 | $ 2,090 |
Stock Based Compensation (Detai
Stock Based Compensation (Details) - USD ($) $ / shares in Units, $ in Thousands | Feb. 08, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Class B [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares distribution period from grant date | 1 year | |||
Summary of stock Issuances [Abstract] | ||||
Period restricted stocks will vest ratably from date of grant | 3 years | |||
Class B [Member] | 05/12/2015 [Member] | ||||
Summary of stock Issuances [Abstract] | ||||
Number of shares issued (in shares) | 21,252 | |||
Vesting date | May 12, 2016 | |||
Period | 7/1/2015 - 6/30/2016 | |||
Grant date fair value per share (in dollars per share) | $ 22.59 | |||
Class B [Member] | 5/10/2016 [Member] | ||||
Summary of stock Issuances [Abstract] | ||||
Number of shares issued (in shares) | 17,677 | |||
Vesting date | May 10, 2017 | |||
Period | 7/1/2016 - 6/30/2017 | |||
Grant date fair value per share (in dollars per share) | $ 24.89 | |||
Class B [Member] | 5/09/2017 [Member] | ||||
Summary of stock Issuances [Abstract] | ||||
Number of shares issued (in shares) | 18,183 | |||
Vesting date | May 9, 2018 | |||
Period | 7/1/2017 - 6/30/2018 | |||
Grant date fair value per share (in dollars per share) | $ 24.20 | |||
Class B [Member] | 8/31/2017 [Member] | ||||
Summary of stock Issuances [Abstract] | ||||
Number of shares issued (in shares) | 1,257 | |||
Vesting date | May 9, 2018 | |||
Period | 8/31/2017 - 6/30/2018 | |||
Grant date fair value per share (in dollars per share) | $ 21.90 | |||
Class B [Member] | Outside Director [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation cost charged against income | $ 454 | $ 460 | $ 460 | |
Class B [Member] | Executives [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares awarded (in shares) | 20,181 | |||
Total value of shares issued | $ 480 | |||
Summary of stock Issuances [Abstract] | ||||
Grant date fair value per share (in dollars per share) | $ 23.80 | |||
1981 Stock Purchase Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Purchase price of shares obligated to be repurchased, percentage of book value | 90.00% | |||
1981 Stock Purchase Plan [Member] | Class A [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of outstanding shares eligible for repurchase (in shares) | 46,875 | |||
1981 Stock Purchase Plan [Member] | Class B [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of outstanding shares eligible for repurchase (in shares) | 187,500 |
Segment Information (Details)
Segment Information (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2017USD ($)Segment | Dec. 31, 2016USD ($)Segment | Dec. 31, 2015USD ($) | |
Segment Information [Abstract] | |||||||||||
Number of reportable segments | Segment | 1 | 2 | |||||||||
Revenues [Abstract] | |||||||||||
Net premiums earned | $ 97,075 | $ 89,100 | $ 67,996 | $ 73,974 | $ 69,141 | $ 71,235 | $ 68,726 | $ 66,909 | $ 328,145 | $ 276,011 | $ 263,335 |
Net investment income | 5,661 | 4,027 | 4,716 | 3,692 | 3,982 | 3,513 | 3,549 | 3,440 | 18,095 | 14,483 | 12,498 |
Commissions and other income | 5,308 | 5,275 | 5,703 | ||||||||
Net realized gains (losses) on investments | $ 4,152 | $ 5,944 | $ 3,296 | $ 6,294 | $ 6,204 | $ 7,732 | $ 280 | $ 9,012 | 19,686 | 23,228 | (1,261) |
Total revenues | 371,234 | 318,997 | 280,275 | ||||||||
Property and Casualty Insurance [Member] | |||||||||||
Revenues [Abstract] | |||||||||||
Net premiums earned | 328,145 | 276,011 | 263,335 | ||||||||
Net investment income | 18,095 | 14,483 | 12,498 | ||||||||
Commissions and other income | 5,308 | 5,275 | 5,703 | ||||||||
Net realized gains (losses) on investments | 19,686 | 23,228 | (1,261) | ||||||||
Total revenues | $ 371,234 | $ 318,997 | $ 280,275 |
Earnings Per Share (Details)
Earnings Per Share (Details) - shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Reconciliation of the denominators used in the calculation of basic and diluted earnings per share [Abstract] | |||
Average shares outstanding for basic earnings per share (in shares) | 15,065,216 | 15,071,900 | 15,010,454 |
Dilutive effect of share equivalents (in shares) | 42,220 | 12,108 | 11,308 |
Average shares outstanding for diluted earnings per share (in shares) | 15,107,436 | 15,084,008 | 15,021,762 |
Concentrations of Credit Risk (
Concentrations of Credit Risk (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Concentrations of Credit Risk [Abstract] | |
Guarantor obligations, aggregate amount of collateral held | $ 300,069 |
Collateral held that is equal to the ultimate losses that would be paid or due in the event of insured's default | 100.00% |
Uncollateralized exposure as a percentage of shareholder's equity | 46.00% |
Largest estimated amounts due from individual reinsurers, one | $ 35,801 |
Second largest estimated amounts due from individual reinsurers, two | $ 34,927 |
Acquisition and related Goodw62
Acquisition and related Goodwill and Intangibles (Details) - Commercial Lines Specialty Insurance Agency [Member] - USD ($) $ in Thousands | Oct. 31, 2008 | Dec. 31, 2017 | Dec. 31, 2016 |
Business Acquisition [Line Items] | |||
Cash purchase price | $ 3,500 | ||
Recorded goodwill | 3,152 | ||
Intangible assets acquired | $ 179 | ||
Accumulated amortization on intangible assets | $ 179 | $ 179 |
Fair Value (Details)
Fair Value (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Fixed maturities [Abstract] | ||
Total fixed maturities | $ 521,853 | $ 491,904 |
Equity securities [Abstract] | ||
Total equity securities | 201,763 | 119,945 |
Recurring [Member] | ||
Fixed maturities [Abstract] | ||
Agency collateralized mortgage obligations | 16,586 | 6,171 |
Agency mortgage-backed securities | 27,075 | 4,770 |
Asset-backed securities | 43,469 | 45,183 |
Bank loans | 19,488 | 10,349 |
Certificates of deposit | 3,135 | 3,117 |
Collateralized mortgage obligations | 6,492 | 9,104 |
Corporate securities | 193,058 | 137,932 |
Options embedded in convertible securities | 5,291 | 4,751 |
Mortgage-backed securities | 24,204 | 24,571 |
Municipal obligations | 96,650 | 129,335 |
Non-U.S. government obligations | 37,394 | 24,681 |
U.S. government obligations | 49,011 | 91,940 |
Total fixed maturities | 521,853 | 491,904 |
Equity securities [Abstract] | ||
Consumer | 46,578 | 32,576 |
Energy | 10,278 | 12,842 |
Financial | 45,470 | 31,186 |
Industrial | 25,402 | 21,145 |
Technology | 13,061 | 8,858 |
Funds (e.g. mutual funds, closed end funds, ETFs) | 50,291 | 6,995 |
Other | 10,683 | 6,343 |
Total equity securities | 201,763 | 119,945 |
Short term | 1,000 | 1,500 |
Cash equivalents | 59,173 | 59,683 |
Total fair value | 783,789 | 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 | 3,135 | 3,117 |
Collateralized mortgage obligations | 0 | 0 |
Corporate securities | 0 | 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 | 3,135 | 3,117 |
Equity securities [Abstract] | ||
Consumer | 46,578 | 32,576 |
Energy | 10,278 | 12,842 |
Financial | 45,470 | 30,943 |
Industrial | 25,402 | 20,262 |
Technology | 13,061 | 8,858 |
Funds (e.g. mutual funds, closed end funds, ETFs) | 45,276 | 0 |
Other | 10,683 | 6,343 |
Total equity securities | 196,748 | 111,824 |
Short term | 1,000 | 1,500 |
Cash equivalents | 0 | 0 |
Total fair value | 200,883 | 116,441 |
Recurring [Member] | Level 2 [Member] | ||
Fixed maturities [Abstract] | ||
Agency collateralized mortgage obligations | 16,586 | 6,171 |
Agency mortgage-backed securities | 27,075 | 4,770 |
Asset-backed securities | 43,469 | 37,919 |
Bank loans | 19,488 | 0 |
Certificates of deposit | 0 | 0 |
Collateralized mortgage obligations | 6,492 | 6,409 |
Corporate securities | 193,058 | 135,794 |
Options embedded in convertible securities | 5,291 | 4,751 |
Mortgage-backed securities | 24,204 | 22,206 |
Municipal obligations | 96,650 | 129,190 |
Non-U.S. government obligations | 37,394 | 24,419 |
U.S. government obligations | 49,011 | 91,940 |
Total fixed maturities | 518,718 | 463,569 |
Equity securities [Abstract] | ||
Consumer | 0 | 0 |
Energy | 0 | 0 |
Financial | 0 | 243 |
Industrial | 0 | 883 |
Technology | 0 | 0 |
Funds (e.g. mutual funds, closed end funds, ETFs) | 5,015 | 6,995 |
Other | 0 | 0 |
Total equity securities | 5,015 | 8,121 |
Short term | 0 | 0 |
Cash equivalents | 59,173 | 59,683 |
Total fair value | 582,906 | 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 | 0 | 7,264 |
Bank loans | 0 | 10,349 |
Certificates of deposit | 0 | 0 |
Collateralized mortgage obligations | 0 | 2,695 |
Corporate securities | 0 | 2,138 |
Options embedded in convertible securities | 0 | 0 |
Mortgage-backed securities | 0 | 2,365 |
Municipal obligations | 0 | 145 |
Non-U.S. government obligations | 0 | 262 |
U.S. government obligations | 0 | 0 |
Total fixed maturities | 0 | 25,218 |
Equity securities [Abstract] | ||
Consumer | 0 | 0 |
Energy | 0 | 0 |
Financial | 0 | 0 |
Industrial | 0 | 0 |
Technology | 0 | 0 |
Funds (e.g. mutual funds, closed end funds, ETFs) | 0 | 0 |
Other | 0 | 0 |
Total equity securities | 0 | 0 |
Short term | 0 | 0 |
Cash equivalents | 0 | 0 |
Total fair value | $ 0 | $ 25,218 |
Fair Value, Unobservable Input
Fair Value, Unobservable Input Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 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) included in income | 406 | 1,846 |
Purchases | 81 | 5,540 |
Settlements | (9,123) | (8,791) |
Transfers into Level 3 | 144 | 10,202 |
Transfers out of Level 3 | (16,726) | (372) |
End of period balance | $ 0 | $ 25,218 |
Fair Value, Balance Sheet Group
Fair Value, Balance Sheet Grouping (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Assets [Abstract] | ||
Limited partnerships | $ 70,806 | $ 76,469 |
Carrying Value [Member] | ||
Assets [Abstract] | ||
Limited partnerships | 70,806 | 76,469 |
Liabilities [Abstract] | ||
Short-term borrowings | 20,000 | 20,000 |
Fair Value [Member] | ||
Assets [Abstract] | ||
Limited partnerships | 70,806 | 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 | 70,806 | 76,469 |
Liabilities [Abstract] | ||
Short-term borrowings | $ 0 | $ 0 |
Quarterly Results of Operatio66
Quarterly Results of Operations (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Quarterly Results of Operations (Unaudited) [Abstract] | |||||||||||
Net premiums earned | $ 97,075 | $ 89,100 | $ 67,996 | $ 73,974 | $ 69,141 | $ 71,235 | $ 68,726 | $ 66,909 | $ 328,145 | $ 276,011 | $ 263,335 |
Net investment income | 5,661 | 4,027 | 4,716 | 3,692 | 3,982 | 3,513 | 3,549 | 3,440 | 18,095 | 14,483 | 12,498 |
Net realized gains (losses) on investments | 4,152 | 5,944 | 3,296 | 6,294 | 6,204 | 7,732 | 280 | 9,012 | 19,686 | 23,228 | (1,261) |
Losses and loss expenses incurred | 66,492 | 60,673 | 71,754 | 48,599 | 48,366 | 56,827 | 42,666 | 38,623 | 247,518 | 186,481 | 155,750 |
Net income (loss) | $ 16,476 | $ 7,434 | $ (12,343) | $ 6,756 | $ 4,864 | $ 4,001 | $ 5,969 | $ 14,112 | $ 18,323 | $ 28,945 | $ 23,283 |
Net income (loss) per share - diluted (in dollars per share) | $ 1.10 | $ 0.49 | $ (0.82) | $ 0.45 | $ 0.32 | $ 0.27 | $ 0.40 | $ 0.94 |
Statutory (Details)
Statutory (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statutory [Abstract] | |||
Net income of the insurance subsidiaries in accordance with statutory accounting practices | $ 22,000 | $ 31,647 | $ 25,627 |
Consolidated statutory capital and surplus for subsidiaries | 421,663 | $ 399,314 | |
Amount of statutory surplus transferred by dividend or loan to the parent company | 59,106 | ||
Minimum statutory surplus necessary for the insurance subsidiaries to satisfy statutory risk based capital requirements | 104,913 | ||
Consolidated statutory capital and surplus exceeded requirement | $ 316,750 |
Leases (Details)
Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Leases [Abstract] | |||
Lease expense | $ 417 | $ 157 | $ 175 |
Future lease payments for operating leases with initial or remaining noncancelable term of one year or more [Abstract] | |||
2,018 | 297 | ||
2,019 | 297 | ||
2,020 | 80 | ||
2021 and thereafter | 6 | ||
Total minimum payments required | $ 680 |
Accumulated Other Comprehensi69
Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Investments [Abstract] | |||
Total unrealized gain before federal income taxes | $ 71,848 | $ 52,386 | |
Deferred tax liability | (25,148) | (18,335) | |
Net unrealized gains on investments | 46,700 | 34,051 | |
Foreign exchange adjustment [Abstract] | |||
Total unrealized losses | (475) | (1,278) | |
Deferred tax benefit | 166 | 447 | |
Net unrealized losses on foreign exchange adjustment | (309) | (831) | |
Accumulated other comprehensive income | 46,391 | 33,220 | |
Investments [Abstract] | |||
Pre-tax holding gains (losses) on debt and equity securities arising during period | 26,677 | 13,259 | $ (19,445) |
Less: applicable federal income taxes | 9,337 | 4,641 | (6,806) |
Net unrealized gains (losses) on investments | 17,340 | 8,618 | (12,639) |
Pre-tax gains on debt and equity securities included in net income during period | 7,217 | 20,755 | 426 |
Less: applicable federal income taxes | 2,526 | 7,264 | 149 |
Other comprehensive income (loss), reclassification adjustment for sale of securities included in net income, net of tax | 4,691 | 13,491 | 277 |
Change in unrealized gains (losses) on investments | 12,649 | (4,873) | (12,916) |
Reconciliation of Accumulated Other Comprehensive Income [Roll Forward] | |||
Shareholders' equity at beginning of year: | 404,345 | 394,498 | 399,496 |
Change in foreign exchange adjustment | 522 | 235 | (1,456) |
Change in unrealized net gains on investments | 12,649 | (4,873) | (12,916) |
Shareholders' equity at end of year: | 418,811 | 404,345 | 394,498 |
AOCI Attributable to Parent [Member] | |||
Reconciliation of Accumulated Other Comprehensive Income [Roll Forward] | |||
Shareholders' equity at beginning of year: | 33,220 | 37,858 | 52,230 |
Shareholders' equity at end of year: | $ 46,391 | $ 33,220 | $ 37,858 |
Accumulated Other Comprehensi70
Accumulated Other Comprehensive Income, Retained Earnings (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Retained Earnings [Roll Forward] | |||||||||||
Shareholders' equity at beginning of year: | $ 404,345 | $ 394,498 | $ 404,345 | $ 394,498 | $ 399,496 | ||||||
Net income | $ 16,476 | $ 7,434 | $ (12,343) | 6,756 | $ 4,864 | $ 4,001 | $ 5,969 | 14,112 | 18,323 | 28,945 | 23,283 |
Dividends | (16,302) | (15,803) | (15,003) | ||||||||
Repurchase of common shares | (1,880) | 0 | 0 | ||||||||
Shareholders' equity at end of year: | 418,811 | 404,345 | 418,811 | 404,345 | 394,498 | ||||||
Retained Earnings [Member] | |||||||||||
Retained Earnings [Roll Forward] | |||||||||||
Shareholders' equity at beginning of year: | $ 316,195 | $ 303,053 | 316,195 | 303,053 | 294,773 | ||||||
Net income | 18,323 | 28,945 | 23,283 | ||||||||
Dividends | (16,302) | (15,803) | (15,003) | ||||||||
Repurchase of common shares | (1,516) | 0 | 0 | ||||||||
Shareholders' equity at end of year: | $ 316,700 | $ 316,195 | $ 316,700 | $ 316,195 | $ 303,053 |
Debt (Details)
Debt (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 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 | 2.65% | |
Remaining amount under line of credit | $ 20,000 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event [Member] - Dividend Declared Q1-2018 [Member] | Feb. 09, 2018$ / shares |
Subsequent Event [Abstract] | |
Dividend payable, date declared | Feb. 9, 2018 |
Dividend payable, date to be paid | Mar. 9, 2018 |
Dividend payable, date of record | Feb. 23, 2018 |
Class A [Member] | |
Subsequent Event [Abstract] | |
Dividend payable (in dollars per share) | $ 0.28 |
Class B [Member] | |
Subsequent Event [Abstract] | |
Dividend payable (in dollars per share) | $ 0.28 |
SCHEDULE I -- SUMMARY OF INVEST
SCHEDULE I -- SUMMARY OF INVESTMENTS-OTHER THAN INVESTMENTS IN RELATED PARTIES (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |||
Cost | $ 521,017 | $ 494,561 | |
Amount at which shown in the balance sheet | 693 | ||
Investments classified as cash and cash equivalents | 59,174 | ||
Total Investments [Member] | |||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |||
Cost | 652,768 | ||
Fair value | 724,616 | ||
Amount at which shown in the balance sheet | [1] | 724,616 | |
Bonds [Member] | Total Fixed Maturities [Member] | |||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |||
Cost | 521,017 | ||
Fair value | 521,853 | ||
Amount at which shown in the balance sheet | [1] | 521,853 | |
Bonds [Member] | Agency Collateralized Mortgage Obligations [Member] | |||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |||
Cost | 15,839 | ||
Fair value | 16,586 | ||
Amount at which shown in the balance sheet | [1] | 16,586 | |
Bonds [Member] | Agency Mortgage-backed Securities [Member] | |||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |||
Cost | 27,180 | ||
Fair value | 27,075 | ||
Amount at which shown in the balance sheet | [1] | 27,075 | |
Bonds [Member] | Asset-backed Securities [Member] | |||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |||
Cost | 42,861 | ||
Fair value | 43,469 | ||
Amount at which shown in the balance sheet | [1] | 43,469 | |
Bonds [Member] | Bank Loans [Member] | |||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |||
Cost | 19,271 | ||
Fair value | 19,488 | ||
Amount at which shown in the balance sheet | [1] | 19,488 | |
Bonds [Member] | Certificates of Deposit [Member] | |||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |||
Cost | 3,124 | ||
Fair value | 3,135 | ||
Amount at which shown in the balance sheet | [1] | 3,135 | |
Bonds [Member] | Collateralized Mortgage Obligations [Member] | |||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |||
Cost | 6,079 | ||
Fair value | 6,492 | ||
Amount at which shown in the balance sheet | [1] | 6,492 | |
Bonds [Member] | Corporate Securities [Member] | |||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |||
Cost | 197,201 | ||
Fair value | 197,130 | ||
Amount at which shown in the balance sheet | [1] | 197,130 | |
Bonds [Member] | Mortgage-backed Securities [Member] | |||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |||
Cost | 23,656 | ||
Fair value | 24,204 | ||
Amount at which shown in the balance sheet | [1] | 24,204 | |
Bonds [Member] | Municipal Obligations [Member] | |||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |||
Cost | 97,059 | ||
Fair value | 96,650 | ||
Amount at which shown in the balance sheet | [1] | 96,650 | |
Bonds [Member] | Non-U.S. Government Obligations [Member] | |||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |||
Cost | 39,189 | ||
Fair value | 38,613 | ||
Amount at which shown in the balance sheet | [1] | 38,613 | |
Bonds [Member] | U.S. Government Obligations [Member] | |||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |||
Cost | 49,558 | ||
Fair value | 49,011 | ||
Amount at which shown in the balance sheet | [1] | 49,011 | |
Common Stocks [Member] | Total Equity Securities [Member] | |||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |||
Cost | 130,751 | ||
Fair value | 201,763 | ||
Amount at which shown in the balance sheet | [1] | 201,763 | |
Common Stocks [Member] | Consumer [Member] | |||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |||
Cost | 23,565 | ||
Fair value | 46,578 | ||
Amount at which shown in the balance sheet | [1] | 46,578 | |
Common Stocks [Member] | Energy [Member] | |||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |||
Cost | 6,763 | ||
Fair value | 10,278 | ||
Amount at which shown in the balance sheet | [1] | 10,278 | |
Common Stocks [Member] | Financial [Member] | |||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |||
Cost | 31,859 | ||
Fair value | 45,470 | ||
Amount at which shown in the balance sheet | [1] | 45,470 | |
Common Stocks [Member] | Industrial [Member] | |||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |||
Cost | 8,949 | ||
Fair value | 25,402 | ||
Amount at which shown in the balance sheet | [1] | 25,402 | |
Common Stocks [Member] | Technology [Member] | |||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |||
Cost | 5,768 | ||
Fair value | 13,061 | ||
Amount at which shown in the balance sheet | [1] | 13,061 | |
Common Stocks [Member] | Funds (e.g. mutual funds, closed end funds, ETFs) [Member] | |||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |||
Cost | 46,177 | ||
Fair value | 50,291 | ||
Amount at which shown in the balance sheet | [1] | 50,291 | |
Common Stocks [Member] | Other [Member] | |||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |||
Cost | 7,670 | ||
Fair value | 10,683 | ||
Amount at which shown in the balance sheet | [1] | 10,683 | |
Short-term [Member] | Total Short-term and Other [Member] | |||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |||
Cost | 1,000 | ||
Fair value | 1,000 | ||
Amount at which shown in the balance sheet | [1] | 1,000 | |
Short-term [Member] | Certificates of Deposit [Member] | |||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |||
Cost | 1,000 | ||
Fair value | 1,000 | ||
Amount at which shown in the balance sheet | [1] | $ 1,000 | |
[1] | Amounts presented above do not include investments of $59,174 classified as cash and cash equivalents in the balance sheet. |
SCHEDULE II CONDENSED FINANCI74
SCHEDULE II CONDENSED FINANCIAL INFORMATION OF REGISTRANT (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Investments other than subsidiaries [Abstract] | |||||||||||||||
Fixed maturities | $ 521,853 | $ 491,904 | |||||||||||||
Limited partnerships | 70,806 | 76,469 | |||||||||||||
Total Investments | 795,422 | 689,818 | |||||||||||||
Cash and cash equivalents | $ 64,680 | $ 62,976 | $ 62,976 | $ 73,538 | $ 62,976 | $ 62,976 | $ 64,632 | 64,680 | 62,976 | $ 73,538 | $ 64,632 | ||||
Accounts receivable | 87,551 | 64,984 | |||||||||||||
Other assets | 11,030 | 23,779 | |||||||||||||
Total Assets | 1,357,016 | 1,154,137 | |||||||||||||
Liabilities [Abstract] | |||||||||||||||
Short-term borrowings | 20,000 | 20,000 | |||||||||||||
Total Liabilities | 938,205 | 749,792 | |||||||||||||
Shareholders' equity [Abstract] | |||||||||||||||
Additional paid-in capital | 55,078 | 54,286 | |||||||||||||
Unrealized net gains on investments | 46,700 | 34,051 | |||||||||||||
Foreign exchange adjustment | (309) | (831) | |||||||||||||
Retained earnings | 316,700 | 316,195 | |||||||||||||
Shareholders' equity | 418,811 | 404,345 | 394,498 | 399,496 | |||||||||||
Total liabilities and shareholders' equity | 1,357,016 | 1,154,137 | |||||||||||||
Revenue [Abstract] | |||||||||||||||
Net investment income | 5,661 | $ 4,027 | $ 4,716 | 3,692 | 3,982 | $ 3,513 | $ 3,549 | 3,440 | 18,095 | 14,483 | 12,498 | ||||
Net realized gains (losses) on investments | 4,152 | 5,944 | 3,296 | 6,294 | 6,204 | 7,732 | 280 | 9,012 | 19,686 | 23,228 | (1,261) | ||||
Total revenues | 371,234 | 318,997 | 280,275 | ||||||||||||
Expenses [Abstract] | |||||||||||||||
Other | 113,594 | 89,462 | 90,573 | ||||||||||||
Total expenses | 361,112 | 275,943 | 246,323 | ||||||||||||
Federal income tax benefit | (8,201) | 14,109 | 10,669 | ||||||||||||
Equity in undistributed income of subsidiaries | 12,469 | 2,473 | (1,687) | ||||||||||||
Net income | 16,476 | 7,434 | (12,343) | 6,756 | 4,864 | 4,001 | 5,969 | 14,112 | 18,323 | 28,945 | 23,283 | ||||
Condensed Statements of Comprehensive Income [Abstract] | |||||||||||||||
Net income | 16,476 | $ 7,434 | $ (12,343) | 6,756 | 4,864 | $ 4,001 | $ 5,969 | 14,112 | 18,323 | 28,945 | 23,283 | ||||
Unrealized net losses on securities [Abstract] | |||||||||||||||
Unrealized holding net gains (losses) arising during the period | 17,340 | 8,618 | (12,639) | ||||||||||||
Less: reclassification adjustment for net gains included in net income | (4,691) | (13,491) | (277) | ||||||||||||
Change in unrealized gains (losses) on investments | 12,649 | (4,873) | (12,916) | ||||||||||||
Foreign currency translation adjustments | 522 | 235 | (1,456) | ||||||||||||
Other comprehensive income (loss) | 13,171 | (4,638) | (14,372) | ||||||||||||
Comprehensive income | 31,494 | 24,307 | 8,911 | ||||||||||||
Condensed Statements of Cash Flows [Abstract] | |||||||||||||||
Net cash provided by operating activities | 93,711 | 32,368 | 38,197 | ||||||||||||
Investing activities [Abstract] | |||||||||||||||
Net sales of short-term investments | 500 | 11,258 | 746 | ||||||||||||
Distributions from limited partnerships | 19,230 | 1,462 | 4,494 | ||||||||||||
Net purchases of property and equipment | (6,661) | (7,725) | (7,662) | ||||||||||||
Net cash used in investing activities | (74,347) | (27,362) | (12,832) | ||||||||||||
Financing activities [Abstract] | |||||||||||||||
Dividends paid to shareholders | (16,302) | (15,803) | (15,003) | ||||||||||||
Repurchase of common shares | (1,880) | 0 | 0 | ||||||||||||
Net cash used in financing activities | (18,182) | (15,803) | (15,003) | ||||||||||||
Increase (decrease) in cash and cash equivalents | 1,704 | (10,562) | 8,906 | ||||||||||||
Cash and cash equivalents at beginning of year | 62,976 | 73,538 | 62,976 | 73,538 | 64,632 | ||||||||||
Cash and cash equivalents at end of year | 64,680 | 62,976 | 64,680 | 62,976 | 73,538 | ||||||||||
Class A [Member] | |||||||||||||||
Shareholders' equity [Abstract] | |||||||||||||||
Common stock | 112 | 112 | |||||||||||||
Class B [Member] | |||||||||||||||
Shareholders' equity [Abstract] | |||||||||||||||
Common stock | 530 | 532 | |||||||||||||
Baldwin & Lyons, Inc. [Member] | |||||||||||||||
Assets [Abstract] | |||||||||||||||
Investment in subsidiaries | 436,879 | 409,892 | |||||||||||||
Due from affiliates | 1,191 | 3,381 | |||||||||||||
Investments other than subsidiaries [Abstract] | |||||||||||||||
Fixed maturities | 22,306 | 10,166 | |||||||||||||
Limited partnerships | 222 | 205 | |||||||||||||
Total Investments | 22,528 | 10,371 | |||||||||||||
Cash and cash equivalents | 26,496 | 14,995 | 14,995 | 17,934 | 14,995 | 14,995 | 17,934 | 26,496 | 14,995 | $ 17,934 | $ 16,615 | ||||
Accounts receivable | 6,833 | 7,602 | |||||||||||||
Other assets | 24,772 | 25,763 | |||||||||||||
Total Assets | 518,699 | 472,004 | |||||||||||||
Liabilities [Abstract] | |||||||||||||||
Premiums payable | 14,046 | 11,973 | |||||||||||||
Deposits from insureds | 60,893 | 30,087 | |||||||||||||
Short-term borrowings | 20,000 | 20,000 | |||||||||||||
Other liabilities | 4,949 | 5,599 | |||||||||||||
Total Liabilities | 99,888 | 67,659 | |||||||||||||
Shareholders' equity [Abstract] | |||||||||||||||
Additional paid-in capital | 55,078 | 54,286 | |||||||||||||
Unrealized net gains on investments | 46,700 | 34,051 | |||||||||||||
Foreign exchange adjustment | (309) | (831) | |||||||||||||
Retained earnings | 316,700 | 316,195 | |||||||||||||
Shareholders' equity | 418,811 | 404,345 | |||||||||||||
Total liabilities and shareholders' equity | 518,699 | 472,004 | |||||||||||||
Revenue [Abstract] | |||||||||||||||
Commissions and service fees | 18,863 | 27,736 | 23,523 | ||||||||||||
Cash dividends from subsidiaries | 10,000 | 20,000 | 20,000 | ||||||||||||
Net investment income | 348 | 134 | 120 | ||||||||||||
Net realized gains (losses) on investments | 308 | (3) | (22) | ||||||||||||
Other | (106) | (24) | (17) | ||||||||||||
Total revenues | 29,413 | 47,843 | 43,604 | ||||||||||||
Expenses [Abstract] | |||||||||||||||
Salary and related items | 18,140 | 17,462 | 17,616 | ||||||||||||
Other | 9,686 | 10,808 | 7,297 | ||||||||||||
Total expenses | 27,826 | 28,270 | 24,913 | ||||||||||||
Income before federal income taxes and equity in undistributed income of subsidiaries | 1,587 | 19,573 | 18,691 | ||||||||||||
Federal income tax benefit | (2,971) | (69) | (350) | ||||||||||||
Income after federal income taxes and equity in undistributed income of subsidiaries | 4,558 | 19,642 | 19,041 | ||||||||||||
Equity in undistributed income of subsidiaries | 13,765 | 9,303 | 4,242 | ||||||||||||
Net income | 18,323 | 28,945 | 23,283 | ||||||||||||
Condensed Statements of Comprehensive Income [Abstract] | |||||||||||||||
Net income | 18,323 | 28,945 | 23,283 | ||||||||||||
Unrealized net losses on securities [Abstract] | |||||||||||||||
Unrealized holding net gains (losses) arising during the period | 17,340 | 8,618 | (12,639) | ||||||||||||
Less: reclassification adjustment for net gains included in net income | (4,691) | (13,491) | (277) | ||||||||||||
Change in unrealized gains (losses) on investments | 12,649 | (4,873) | (12,916) | ||||||||||||
Foreign currency translation adjustments | 522 | 235 | (1,456) | ||||||||||||
Other comprehensive income (loss) | 13,171 | (4,638) | (14,372) | ||||||||||||
Comprehensive income | 31,494 | 24,307 | 8,911 | ||||||||||||
Condensed Statements of Cash Flows [Abstract] | |||||||||||||||
Net cash provided by operating activities | 44,998 | 15,484 | 21,841 | ||||||||||||
Investing activities [Abstract] | |||||||||||||||
Purchases of long-term investments | (21,365) | (4,000) | (4,792) | ||||||||||||
Sales or maturities of long-term investments | 9,146 | 3,493 | 4,194 | ||||||||||||
Net sales of short-term investments | 0 | 2,165 | 0 | ||||||||||||
Distributions from limited partnerships | 298 | 0 | 0 | ||||||||||||
Net purchases of property and equipment | (3,394) | (4,278) | (4,921) | ||||||||||||
Net cash used in investing activities | (15,315) | (2,620) | (5,519) | ||||||||||||
Financing activities [Abstract] | |||||||||||||||
Dividends paid to shareholders | (16,302) | (15,803) | (15,003) | ||||||||||||
Repurchase of common shares | (1,880) | 0 | 0 | ||||||||||||
Net cash used in financing activities | (18,182) | (15,803) | (15,003) | ||||||||||||
Increase (decrease) in cash and cash equivalents | 11,501 | (2,939) | 1,319 | ||||||||||||
Cash and cash equivalents at beginning of year | $ 14,995 | $ 17,934 | 14,995 | 17,934 | 16,615 | ||||||||||
Cash and cash equivalents at end of year | $ 26,496 | $ 14,995 | $ 26,496 | $ 14,995 | $ 17,934 | ||||||||||
Baldwin & Lyons, Inc. [Member] | Class A [Member] | |||||||||||||||
Shareholders' equity [Abstract] | |||||||||||||||
Common stock | 112 | 112 | |||||||||||||
Baldwin & Lyons, Inc. [Member] | Class B [Member] | |||||||||||||||
Shareholders' equity [Abstract] | |||||||||||||||
Common stock | $ 530 | $ 532 |
SCHEDULE III -- SUPPLEMENTARY75
SCHEDULE III -- SUPPLEMENTARY INSURANCE INFORMATION (Details) - Property/Casualty Insurance [Member] - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Supplementary Insurance Information, by Segment [Line Items] | ||||
Deferred policy acquisition costs | $ 5,608 | $ 1,172 | $ 1,443 | |
Reserves for unpaid claims and claim adjustment expenses | 680,274 | 576,330 | 513,596 | |
Unearned premiums | 53,085 | 21,694 | 25,291 | |
Other policy claims and benefits payable | 0 | 0 | 0 | |
Net premium earned | 328,145 | 276,011 | 263,335 | |
Net investment income | [1] | 18,095 | 14,483 | 12,498 |
Benefits, claims, losses and settlement expenses | [1] | 247,518 | 186,481 | 155,750 |
Amortization of deferred policy acquisition costs | 70,574 | 51,597 | 50,270 | |
Other operating expenses | [1],[2] | 14,043 | 8,180 | 13,682 |
Net premiums written | $ 353,389 | $ 271,752 | $ 254,653 | |
[1] | Allocations of certain expenses have been made to investment income, settlement expenses and other operating expenses and are based on a number of assumptions and estimates. Results among these categories would change if different methods were applied. | |||
[2] | Commission allowances relating to reinsurance ceded are offset against other operating expenses. |
SCHEDULE IV -- REINSURANCE (Det
SCHEDULE IV -- REINSURANCE (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
SCHEDULE IV -- REINSURANCE [Abstract] | |||||||||||
Direct premiums | $ 470,158 | $ 394,679 | $ 370,499 | ||||||||
Ceded to other companies | 145,201 | 130,012 | 128,697 | ||||||||
Assumed from other companies | 3,188 | 11,344 | 21,533 | ||||||||
Net | $ 97,075 | $ 89,100 | $ 67,996 | $ 73,974 | $ 69,141 | $ 71,235 | $ 68,726 | $ 66,909 | $ 328,145 | $ 276,011 | $ 263,335 |
% of amount assumed to net | 1.00% | 4.10% | 8.00% | ||||||||
Retrocessions associated with premiums assumed from other companies | $ 0 | $ 86 | $ 562 |
SCHEDULE VI--SUPPLEMENTAL INF77
SCHEDULE VI--SUPPLEMENTAL INFORMATION CONCERNING PROPERTY/CASUALTY INSURANCE OPERATIONS (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Supplemental Information for Property, Casualty Insurance Underwriters [Line Items] | ||||
Deferred policy acquisition costs | $ 5,608 | $ 1,172 | $ 1,443 | |
Reserves for unpaid claims and claim adjustment expenses | 680,274 | 576,330 | 513,596 | |
Discount if any deducted in Column C | [1] | 0 | 0 | 2,110 |
Unearned premiums | 53,085 | 21,694 | 25,291 | |
Earned premiums | 328,145 | 276,011 | 263,335 | |
Net investment income | 18,095 | 14,483 | 12,498 | |
Claims and claim adjustment expenses incurred related to current year | 228,303 | 172,645 | 165,812 | |
Claims and claim adjustment expenses incurred related to prior years | 19,215 | 13,836 | (10,062) | |
Amortization of deferred policy acquisition costs | 70,574 | 51,597 | 50,270 | |
Paid claims and claim adjustment expenses | 200,154 | 163,467 | 149,580 | |
Net premiums written | $ 353,389 | $ 271,752 | $ 254,653 | |
Loss reserve discounted present value cash flow pretax interest rate utilized | 3.50% | |||
[1] | Loss reserves on certain reinsurance assumed and permanent total disability workers' compensation claims have been discounted to present value using pretax interest rates not exceeding 3.5% through 2015. |