Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2018 | May 01, 2018 | |
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 Common Stock, Shares Outstanding | 15,041,191 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2018 | |
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 | 12,418,082 |
Unaudited Condensed Consolidate
Unaudited Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Investments: | ||
Fixed maturities | $ 544,116 | $ 521,853 |
Equity securities | 149,027 | 201,763 |
Limited partnerships | 68,403 | 70,806 |
Short-term and other | 1,000 | 1,000 |
Total Investments | 762,546 | 795,422 |
Cash and cash equivalents | 79,209 | 64,680 |
Restricted cash and cash equivalents | 4,024 | 4,033 |
Accounts receivable | 104,377 | 87,551 |
Reinsurance recoverable | 322,055 | 318,331 |
Other assets | 95,039 | 80,061 |
Current federal income taxes recoverable | 0 | 6,938 |
Total Assets | 1,367,250 | 1,357,016 |
Liabilities and shareholders' equity | ||
Reserves for losses and loss expenses | 694,450 | 680,274 |
Reserves for unearned premiums | 64,005 | 53,085 |
Short-term borrowings | 20,000 | 20,000 |
Accounts payable and other liabilities | 170,411 | 170,488 |
Current federal income taxes | 1,195 | 0 |
Deferred federal income taxes | 5,378 | 14,358 |
Total Liabilities | 955,439 | 938,205 |
Shareholders' equity: | ||
Additional paid-in capital | 55,511 | 55,078 |
Unrealized net gains (losses) on investments | (2,461) | 46,700 |
Foreign exchange adjustment | (532) | (309) |
Retained earnings | 358,651 | 316,700 |
Shareholders' equity | 411,811 | 418,811 |
Total liabilities and shareholders' equity | 1,367,250 | 1,357,016 |
Class A Voting [Member] | ||
Shareholders' equity: | ||
Common stock | 112 | 112 |
Class B Non-voting [Member] | ||
Shareholders' equity: | ||
Common stock | $ 530 | $ 530 |
Unaudited Condensed Consolidat3
Unaudited Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2018 | Dec. 31, 2017 |
Class A Voting [Member] | ||
Shareholders' equity: | ||
Common stock, par value (in dollars per share) | $ 0 | $ 0 |
Common stock, shares authorized (in shares) | 3,000,000 | 3,000,000 |
Common stock, shares outstanding (in shares) | 2,623,109 | 2,623,109 |
Class B Non-voting [Member] | ||
Shareholders' equity: | ||
Common stock, par value (in dollars per share) | $ 0 | $ 0 |
Common stock, shares authorized (in shares) | 20,000,000 | 20,000,000 |
Common stock, shares outstanding (in shares) | 12,418,082 | 12,423,518 |
Unaudited Condensed Consolidat4
Unaudited Condensed Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Revenues | ||
Net premiums earned | $ 105,462 | $ 73,974 |
Net investment income | 4,636 | 3,692 |
Commissions and other income | 1,814 | 981 |
Net realized gains on investments, excluding impairment losses | 376 | 1,008 |
Other-than-temporary impairment losses on investments | 0 | 0 |
Net unrealized gains (losses) on equity securities and limited partnership investments | (4,909) | 5,286 |
Net realized and unrealized gains (losses) on investments | (4,533) | 6,294 |
Total revenues | 107,379 | 84,941 |
Expenses | ||
Losses and loss expenses incurred | 72,298 | 48,599 |
Other operating expenses | 34,767 | 26,164 |
Total expenses | 107,065 | 74,763 |
Income before federal income taxes (benefits) | 314 | 10,178 |
Federal income taxes (benefits) | (16) | 3,422 |
Net income | $ 330 | $ 6,756 |
Per share data: | ||
Basic and diluted earnings (in dollars per share) | $ 0.02 | $ 0.45 |
Dividends paid to shareholders (in dollars per share) | $ 0.28 | $ 0.27 |
Reconciliation of shares outstanding: | ||
Average shares outstanding - basic (in shares) | 15,010 | 15,096 |
Dilutive effect of share equivalents (in shares) | 24 | 8 |
Average shares outstanding - diluted (in shares) | 15,034 | 15,104 |
Unaudited Condensed Consolidat5
Unaudited Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Unaudited Condensed Consolidated Statements of Comprehensive Income (Loss) [Abstract] | ||
Net income | $ 330 | $ 6,756 |
Unrealized net gains (losses) on fixed income securities: | ||
Unrealized net gains (losses) arising during the period | (2,998) | 5,990 |
Less: reclassification adjustment for net gains included in net income | 123 | 655 |
Change in unrealized gains (losses) on investments | (3,121) | 5,335 |
Foreign currency translation adjustments | (223) | 65 |
Other comprehensive income (loss) | (3,344) | 5,400 |
Comprehensive income (loss) | $ (3,014) | $ 12,156 |
Unaudited Condensed Consolidat6
Unaudited Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Operating activities | ||
Net income | $ 330 | $ 6,756 |
Adjustments to reconcile net income to net cash provided by operating activities | 7,697 | (358) |
Net cash provided by operating activities | 8,027 | 6,398 |
Investing activities: | ||
Purchases of fixed maturities and equity securities | (140,820) | (115,947) |
Purchases of limited partnership interests | (200) | 0 |
Distributions from limited partnerships | 0 | 16,016 |
Proceeds from maturities | 14,021 | 58,132 |
Proceeds from sales of fixed maturities | 89,636 | 40,097 |
Proceeds from sales of equity securities | 59,757 | 7,054 |
Net purchases of short-term investments | 0 | (7,290) |
Purchase of insurance company-owned life insurance | (10,000) | 0 |
Purchases of property and equipment | (1,218) | (2,239) |
Proceeds from disposals of property and equipment | 4 | 579 |
Net cash provided by (used in) investing activities | 11,180 | (3,598) |
Financing activities: | ||
Dividends paid to shareholders | (4,229) | (4,080) |
Repurchase of common shares | (235) | 0 |
Net cash used in financing activities | (4,464) | (4,080) |
Effect of foreign exchange rates on cash and cash equivalents | (223) | 65 |
Increase (decrease) in cash, cash equivalents and restricted cash | 14,520 | (1,215) |
Cash, cash equivalents and restricted cash at beginning of year | 68,713 | 62,976 |
Cash, cash equivalents and restricted cash at end of year | $ 83,233 | $ 61,761 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2018 | |
Summary of Significant Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | (1) Summary of Significant Accounting Policies: Description of Business: Basis of Presentation: Investments : Short-term and other investments are carried at cost, which approximates their fair values. Realized gains and losses on disposals of investments are recorded on the trade date and are determined by specific identification of cost of investments sold and are included in income. Fixed maturity securities are considered to be available-for-sale. The related unrealized net gains or losses (net of applicable tax effects) on fixed maturity securities are reflected directly in shareholders' equity. Included within available for sale fixed maturity securities are convertible debt securities. A portion of the changes in fair values of convertible debt securities are reflected as a component of net realized gains on investments, excluding impairment losses within the condensed consolidated statements of income. Equity securities are recorded at fair value with unrealized net gains or losses reflected as a component of net unrealized gains (losses) on equity securities and limited partnership investments within the condensed consolidated statements of income. In accordance with the Financial Accounting Standards Board's ("FASB") other-than-temporary impairment guidance, if a fixed maturity security is in an unrealized loss position and the Company has the intent to sell the fixed maturity security, or it is more likely than not that the Company will have to sell the fixed maturity security before recovery of its amortized cost basis, the decline in value is deemed to be other-than-temporary and is recorded to net realized losses on investments in the condensed consolidated statements of income. For impaired fixed maturity securities that the Company does not intend to sell or in cases where it is more likely than not that the Company will not have to sell such securities, but the Company expects that it will not fully recover the amortized cost basis, the credit component of the other-than-temporary impairment is recognized in net realized losses on investments in the condensed consolidated statements of income and the non-credit component of the other-than-temporary impairment is recognized directly in shareholders' equity (accumulated other comprehensive income (loss)). 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. Revenue Recognition: Recently Adopted Accounting Pronouncements: not have a material impact on the Company's condensed 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 changed 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. Previously, the Company's equity securities were classified as available-for-sale and changes in fair value were recognized in accumulated other comprehensive income (loss) as a component of shareholders' equity. ASU 2016-01 became effective for interim and annual reporting periods beginning after December 15, 2017. The Company adopted the new guidance as of January 1, 2018 using the modified retrospective approach and recorded a cumulative-effect adjustment to reclassify unrealized gains on equity securities of $71,012 ($46,157, net of tax) from other comprehensive income (loss) to retained earnings within the current period condensed consolidated balance sheet. Going forward, unrealized gains or losses on equity securities will be recognized in the condensed consolidated statement of income within net unrealized gains (losses) on equity securities and limited partnership investments. 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 became effective for interim and annual reporting periods beginning after December 15, 2017. The Company adopted the new guidance as of January 1, 2018. The adoption of the new guidance did not have a material impact on the Company's condensed consolidated financial statements. 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 was applied retrospectively and is effective for annual periods beginning after December 15, 2017, and interim periods within those years, with early adoption permitted. The Company adopted the new guidance as of January 1, 2018 and reclassified $4.0 million of restricted cash as of December 31, 2017 to the beginning cash balance within the March 31, 2018 condensed consolidated statement of cash flows. The adoption of the new guidance did not have a material impact on the Company's condensed consolidated financial statements. 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 (loss) to retained earnings, 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. Early adoption is permitted. The Company adopted the new guidance in the first quarter of 2018 and recorded a cumulative-effect adjustment to reclassify the tax effects on fixed maturity investments of $117 from other comprehensive income (loss) to retained earnings within the current period condensed consolidated balance sheet. Recently Issued Accounting Pronouncements: 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 January 2017, the FASB issued ASU No. 2017-04, Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment, or ASU 2017-04. This amendment removes Step 2 of the goodwill impairment test under current guidance. The new guidance requires an impairment charge to be recognized for the amount by which the carrying amount exceeds the reporting unit's fair value. ASU 2017-04 is effective for interim and annual reporting periods beginning after December 15, 2020, with early adoption permitted. The Company does not expect the guidance to have a material impact on its consolidated financial statements. |
Investments
Investments | 3 Months Ended |
Mar. 31, 2018 | |
Investments [Abstract] | |
Investments | (2) Investments: The following is a summary of available-for-sale securities at March 31, 2018 and December 31, 2017: Net Cost or Gross Gross Unrealized Fair Amortized Unrealized Unrealized Gains Value Cost Gains Losses (Losses) March 31, 2018 1 Fixed maturities Agency collateralized mortgage obligations 14,995 14,500 632 (137 ) 495 Agency mortgage-backed securities 30,740 31,312 32 (604 ) (572 ) Asset-backed securities 44,740 44,211 750 (221 ) 529 Bank loans 22,693 22,458 269 (34 ) 235 Certificates of deposit 3,127 3,124 3 - 3 Collateralized mortgage obligations 5,727 5,382 370 (25 ) 345 Corporate securities 213,462 216,105 1,180 (3,823 ) (2,643 ) Mortgage-backed securities 23,620 23,398 581 (359 ) 222 Municipal obligations 48,764 48,971 290 (497 ) (207 ) Non-U.S. government obligations 38,848 39,539 413 (1,104 ) (691 ) U.S. government obligations 97,400 98,231 20 (851 ) (831 ) Total $ 544,116 $ 547,231 $ 4,540 $ (7,655 ) $ (3,115 ) Net Cost or Gross Gross Unrealized Fair Amortized Unrealized Unrealized Gains Value Cost Gains Losses (Losses) December 31, 2017 1 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 1 Effective January 1, 2018, the Company adopted ASU No. 2016-01 and equity securities are no longer classified as available-for-sale. Prior periods have not been restated to conform to the current presentation. See Note 1 – Recently Adopted Accounting Pronouncements for further discussion. The following table summarizes, for available-for-sale fixed maturities in an unrealized loss position at March 31, 2018 and available-for-sale fixed maturities and equity securities in an unrealized loss position at December 31, 2017, respectively, the aggregate fair value and gross unrealized loss categorized by the duration individual securities have been continuously in an unrealized loss position. March 31, 2018 December 31, 2017 Number of Securities Fair Value Gross Unrealized Loss Number of Securities Fair Value Gross Unrealized Loss Fixed maturity securities: 12 months or less 491 $ 336,083 $ (5,580 ) 459 $ 313,421 $ (2,683 ) Greater than 12 months 105 66,574 (2,075 ) 112 75,638 (2,155 ) Total fixed maturities 596 402,657 (7,655 ) 571 389,059 (4,838 ) Equity securities 1 12 months or less - - - 65 46,654 (2,218 ) Greater than 12 months - - - - - - Total equity securities - - - 65 46,654 (2,218 ) Total fixed maturity and equity securities 596 $ 402,657 $ (7,655 ) 636 $ 435,713 $ (7,056 ) 1 The fair value and the cost or amortized costs of fixed maturity investments at March 31, 2018, by contractual maturity, are shown below. Actual maturities may ultimately differ from contractual maturities because borrowers have, in some cases, the right to call or prepay obligations with or without call or prepayment penalties. Pre-refunded municipal bonds are classified based on their pre-refunded call dates. Fair Value Cost or Amortized Cost One year or less $ 38,435 $ 38,652 Excess of one year to five years 310,711 314,263 Excess of five years to ten years 78,116 78,539 Excess of ten years 2,747 2,781 Contractual maturities 430,009 434,235 Asset-backed securities 114,107 112,996 Total $ 544,116 $ 547,231 Following is a summary of the components of net realized and unrealized gains (losses) on investments for the periods presented in the accompanying condensed consolidated statements of income. Three Months Ended March 31 2018 2017 Gross gains on available-for-sale investments sold during the period: Fixed maturities $ 2,443 $ 888 Equity securities 1 - 1,606 Total gains 2,443 2,494 Gross losses on available-for-sale investments sold during the period: Fixed maturities (2,708 ) (1,373 ) Equity securities 1 - (113 ) Total losses (2,708 ) (1,486 ) Other-than-temporary impairments - - Change in value of limited partnership investments (2,603 ) 5,286 Gains (losses) on equity securities: Realized gains on equity securities sold during the period 2 641 - Unrealized losses on equity securities held at the end of the period (2,306 ) - Realized and unrealized losses on equity securities held at the end of the period (1,665 ) - Net realized and unrealized gains (losses) on investments $ (4,533 ) $ 6,294 1 2 Shareholders' equity at March 31, 2018 included approximately $31,166, net of federal income taxes, of reported earnings, which remain undistributed by limited partnerships. |
Reinsurance
Reinsurance | 3 Months Ended |
Mar. 31, 2018 | |
Reinsurance [Abstract] | |
Reinsurance | (3) Reinsurance: The following table summarizes the Company's transactions with reinsurers for the 2018 and 2017 comparative periods. 2018 2017 Three months ended March 31: Premiums ceded to reinsurers $ 32,442 $ 31,308 Losses and loss expenses ceded to reinsurers 26,661 19,474 Commissions from reinsurers 7,880 7,408 |
Loss and Loss Expense Reserves
Loss and Loss Expense Reserves | 3 Months Ended |
Mar. 31, 2018 | |
Loss and Loss Expense Reserves [Abstract] | |
Loss and Loss Expense Reserves | (4) Activity in the reserves for losses and loss expenses for the three months ended March 31, 2018 and 2017 is summarized as follows. All amounts are shown net of reinsurance, unless otherwise indicated. 2018 2017 Reserves, gross of reinsurance recoverable, at the beginning of the year $ 680,274 $ 576,330 Reinsurance recoverable on unpaid losses at the beginning of the year 308,143 251,563 Reserves at the beginning of the year 372,131 324,767 Provision for losses and loss expenses: Claims occurring during the current period 73,899 48,487 Claims occurring during prior periods (1,601 ) 112 Total incurred 72,298 48,599 Loss and loss expense payments: Claims occurring during the current period 10,683 9,508 Claims occurring during prior periods 48,655 41,814 Total paid 59,338 51,322 Reserves at the end of the period 385,091 322,044 Reinsurance recoverable on unpaid losses at the end of the period 309,359 256,797 Reserves, gross of reinsurance recoverable, at the end of the period $ 694,450 $ 578,841 The table above shows a roll-forward of loss and loss expense reserves from the prior year end to the current balance sheet date with comparable prior year information. Losses incurred from claims occurring during prior years reflect the development from prior accident years, 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. The $1,601 prior accident year savings that developed during the first three months of 2018 was largely due to favorable loss development in workers' compensation and independent contractor coverages. This 2018 savings compares to a deficiency of $112 for the first three months of 2017. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2018 | |
Segment Information [Abstract] | |
Segment Information | (5) Segment Information: The Company has one reportable business segment in its operations: Property and Casualty Insurance. The property and casualty insurance segment provides multiple 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 classes outside the transportation industry. The following table summarizes segment revenues for the three months ended March 31, 2018 and 2017: Three Months Ended March 31 2018 2017 Revenues: Net premiums earned $ 105,462 $ 73,974 Net investment income 4,636 3,692 Net realized and unrealized gains (losses) on investments (4,533 ) 6,294 Commissions and other income 1,814 981 Total revenues $ 107,379 $ 84,941 |
Debt
Debt | 3 Months Ended |
Mar. 31, 2018 | |
Debt [Abstract] | |
Debt | (6) Debt: The Company maintains a revolving line of credit with a $40,000 limit and an expiration date of September 23, 2018. Interest on this line of credit is referenced to LIBOR and can be fixed for periods of up to one year at the Company's option. Outstanding drawings on this line of credit were $20,000 as of both March 31, 2018 and December 31, 2017. At March 31, 2018, the effective interest rate was 2.96%. The Company has $20,000 remaining and unused under the line of credit at March 31, 2018. The current outstanding borrowings were used for general corporate purposes. |
Taxes
Taxes | 3 Months Ended |
Mar. 31, 2018 | |
Taxes [Abstract] | |
Taxes | (7) Taxes: As of March 31, 2018, the Company's calendar years 2016, 2015 and 2014 remain subject to examination by the Internal Revenue Service. The effective federal tax rate on consolidated income for the three months ended March 31, 2018 was (5.1%) compared to 33.6% for the three months ended March 31, 2017. The effective federal income tax rate differs from the normal statutory rate primarily as a result of tax-exempt investment income. was also impacted by |
Fair Value
Fair Value | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value [Abstract] | |
Fair Value | (8) Fair Value: Assets and liabilities recorded at fair value in the condensed consolidated balance sheets are categorized based upon the level of judgment associated with the inputs used to measure their fair value. The following tables summarize fair value measurements by level for assets measured at fair value on a recurring basis: As of March 31, 2018: Description Total Level 1 Level 2 Level 3 Fixed maturities: Agency collateralized mortgage obligations $ 14,995 $ - $ 14,995 $ - Agency mortgage-backed securities 30,740 - 30,740 - Asset-backed securities 44,740 - 44,740 - Bank loans 22,693 - 22,693 - Certificates of deposit 3,127 3,127 - - Collateralized mortgage obligations 5,727 - 5,727 - Corporate securities 208,270 - 208,270 - Options embedded in convertible securities 5,192 - 5,192 - Mortgage-backed securities 23,620 - 23,620 - Municipal obligations 48,764 - 48,764 - Non-U.S. government obligations 38,848 - 38,848 - U.S. government obligations 97,400 - 97,400 - Total fixed maturities 544,116 3,127 540,989 - Equity securities: Consumer 27,519 27,519 - - Energy 6,636 6,636 - - Financial 47,771 47,771 - - Industrial 11,671 11,671 - - Technology 8,203 8,203 - - Funds (e.g. mutual funds, closed end funds, ETFs) 37,375 32,364 5,011 - Other 9,852 9,852 - - Total equity securities 149,027 144,016 5,011 - Short-term 1,000 1,000 - - Cash equivalents 76,639 - 76,639 - Total $ 770,782 $ 148,143 $ 622,639 $ - 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 $ - 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 March 31, 2018. A reconciliation of the beginning and ending balances of assets measured at fair value on a recurring basis using Level 3 inputs is as follows for the three months ended March 31, 2018 and for the year ended December 31, 2017: 2018 2017 Beginning of period balance $ - $ 25,218 Total gains or losses (realized) included in income - 406 Purchases - 81 Settlements - (9,123 ) Transfers into Level 3 - 144 Transfers out of Level 3 - (16,726 ) End of period balance $ - $ - 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 the Company's assumptions, including discount rates and estimates of future cash flows. Potential taxes and other transaction costs have not been considered in estimating fair values. Transfers between levels, if any, are recorded as of the beginning of the reporting period. There were no significant transfers of assets between Level 1 and Level 2 during the three months ended March 31, 2018 and 2017. In addition to the preceding disclosures on assets recorded at fair value in the condensed consolidated balance sheets, FASB guidance also requires the disclosure of fair values for certain other financial instruments for which it is practicable to estimate fair value, whether or not such values are recognized in the condensed consolidated balance sheets. Non-financial instruments such as real estate, property and equipment, other assets, deferred income taxes and intangible assets, and certain financial instruments such as policy reserve liabilities are excluded from the fair value disclosures. Therefore, the fair value amounts cannot be aggregated to determine the underlying economic value of the Company. The following methods, assumptions and inputs were used to estimate the fair value of each class of financial instrument. Limited partnerships: The Company accounts for investments in limited partnerships using the equity method of accounting, which requires an investor in a limited partnership to carry the investment at its proportionate share of the limited partnership's equity. The underlying assets of the Company's investments in limited partnerships are carried primarily at fair value, and, therefore, the Company's carrying value of limited partnerships approximates fair value. As these investments are not actively traded and the corresponding inputs are based on data provided by the investees, they are classified as Level 3. Short-term borrowings: The fair value of the Company's short-term borrowings is based on quoted market prices for the same or similar debt, or, if no quoted market prices are available, on the current market interest rates available to the Company for debt of similar terms and remaining maturities. A summary of the carrying value and fair value by level of financial instruments not recorded at fair value on the Company's condensed consolidated balance sheets at March 31, 2018 and December 31, 2017 is as follows: Carrying Fair Value Value Level 1 Level 2 Level 3 Total March 31, 2018 Assets: Limited partnerships $ 68,403 $ - $ - $ 68,403 $ 68,403 Liabilities: Short-term borrowings 20,000 - 20,000 - 20,000 December 31, 2017 Assets: Limited partnerships 70,806 - - 70,806 70,806 Liabilities: Short-term borrowings 20,000 - 20,000 - 20,000 |
Stock Based Compensation
Stock Based Compensation | 3 Months Ended |
Mar. 31, 2018 | |
Stock Based Compensation [Abstract] | |
Stock Based Compensation | (9) Stock Based Compensation: The Company issues shares of restricted Class B common stock to the Company's outside directors, which serve as the annual retainer 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 February 9, 2018, the Company granted shares of restricted Class B common stock in connection with the election of a new outside director, reflecting 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 restricted stock issuances to directors for 2017 and 2018: Grant Date Grant Number of Shares Vesting Service Fair Value Date Issued Date Period Per Share 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 2/9/2018 408 5/9/2018 2/9/2018 - 6/30/2018 $ 24.20 Compensation expense related to the above stock grants is recognized over the period in which the directors render services. 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 (the "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. No 2017 LTIP Awards were earned based on the Company's performance in 2017, and therefore no shares were issued pursuant to the 2017 LTIP Awards. In addition to the 2017 LTIP Awards, in May 2017 the Company's Compensation Committee also granted Value Creation Incentive Plan awards (the "2017 VCIP Awards") to certain participants under the Long-Term Incentive Plan. The 2017 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 2017 VCIP Awards, cumulative operating income is equal to income before taxes excluding net realized gains (losses) on investments. Any 2017 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 are eligible to be issued under the 2017 VCIP Awards as of March 31, 2018. In March 2018, the Company's Compensation Committee granted equity-based awards pursuant to the Company's Long-Term Incentive Plan. Certain participants under the Long-Term Incentive Plan were granted equity awards (the "2018 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 2018 growth in gross premiums earned and the Company's 2018 combined ratio, as defined above. Any 2018 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 2018 annual performance period and will vest one year from the date of issue. Any 2018 LTIP Awards earned by non-NEOs will be paid in shares of restricted Class B common stock at the end of the 2018 annual performance period and will vest ratably over a three-year period from the date of issue. In addition to the 2018 LTIP Awards, in March 2018 the Company's Compensation Committee also granted Value Creation Incentive Plan awards (the "2018 VCIP Awards") to certain participants under the Long-Term Incentive Plan. The 2018 VCIP Awards are performance-based equity awards that will be earned based on the Company's cumulative operating income, as defined above, over a three-year performance period from January 1, 2018 through December 31, 2020 relative to an operating income goal for the period set by the Compensation Committee in March 2018. Any 2018 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, 2021. The Company recorded $356 of expense related to these awards in the first quarter of 2018. |
Litigation, Commitments and Con
Litigation, Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2018 | |
Litigation, Commitments and Contingencies [Abstract] | |
Litigation, Commitments and Contingencies | (10) Litigation, Commitments and Contingencies: In the ordinary, regular and routine course of their business, the Company and its insurance subsidiaries are frequently involved in various matters of litigation relating principally to claims for insurance coverage provided. No currently pending matter is deemed by management to be material to the Company. |
Shareholders' Equity
Shareholders' Equity | 3 Months Ended |
Mar. 31, 2018 | |
Shareholders' Equity [Abstract] | |
Shareholders' Equity | (11) 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 December 31, 2017 2,623,109 $ 112 12,423,518 $ 530 $ 55,078 Restricted stock grants - - 5,064 - 478 Repurchase of common shares - - (10,500 ) - (45 ) Balance at March 31, 2018 2,623,109 $ 112 12,418,082 $ 530 $ 55,511 During the first quarter of 2018, the Company paid $235 to repurchase 10,500 shares of Class B common stock under a share repurchase program approved by its Board of Directors on August 31, 2017. The change in equity for the three months ended March 31, 2018 was as follows: Total equity Balance at December 31, 2017 $ 418,811 Net income 330 Other comprehensive loss (3,344 ) Cash dividends paid to shareholders (4,229 ) Restricted stock grants 478 Repurchase of common shares (235 ) Balance at March 31, 2018 $ 411,811 The change in equity for the three months ended March 31, 2017 was as follows: Total equity Balance at December 31, 2016 $ 404,345 Net income 6,756 Other comprehensive income 5,400 Cash dividends paid to shareholders (4,080 ) Restricted stock grants 481 Balance at March 31, 2017 $ 412,902 The following table illustrates changes in accumulated other comprehensive income (loss) by component for the three months ended March 31, 2018: Unrealized holding gains on Foreign available-for-sale Currency securities Total Beginning balance at December 31, 2017 $ (309 ) $ 46,700 $ 46,391 Cumulative effect of adoption of ASU 2016-01, net of tax - (46,157 ) (46,157 ) Balance at January 1, 2018 (309 ) 543 234 Cumulative effect of adoption of ASU 2018-02 - 117 117 Other comprehensive loss before reclassifications (223 ) (2,998 ) (3,221 ) Amounts reclassified from accumulated other comprehensive income (loss) - (123 ) (123 ) Net current-period other comprehensive loss (223 ) (3,121 ) (3,344 ) Ending balance at March 31, 2018 $ (532 ) $ (2,461 ) $ (2,993 ) The following table illustrates changes in accumulated other comprehensive income by component for the three months ended March 31, 2017: Unrealized holding gains on Foreign available-for-sale Currency securities Total Beginning balance at December 31, 2016 $ (831 ) $ 34,051 $ 33,220 Other comprehensive income before reclassifications 65 5,990 6,055 Amounts reclassified from accumulated other comprehensive income - (655 ) (655 ) Net current-period other comprehensive income 65 5,335 5,400 Ending balance at March 31, 2017 $ (766 ) $ 39,386 $ 38,620 |
Related Parties
Related Parties | 3 Months Ended |
Mar. 31, 2018 | |
Related Parties [Abstract] | |
Related Parties | (12) Related Parties: The Company has invested in three limited partnerships with an aggregate estimated value of $41,864 at March 31, 2018, 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 6% for New Vernon India Fund, 37% for New Vernon Global Opportunity Fund and 27% for New Vernon Global Opportunity Fund II. For the three months ended March 31, 2018 and 2017 the Company recorded $192 and $173 of fees related to the management of these limited partnership investments. 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 $25,142 at March 31, 2018. Total commissions and net fees earned by the investment firms and affiliates on these portfolios were $27 and $30 for the three months ended March 31, 2018 and 2017. The Company has 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 2018 and 2017. The Company also has a brokerage agreement with this entity. The Company incurred commission expense in connection with insurance policies written in 2018 and 2017 under this brokerage agreement. Total commission expense for the three months ended March 31, 2018 and 2017 was $151 and $155. The firm also received $350 in commission related to the placement of insurance company owned life insurance on behalf of the Company during the three months ended March 31, 2018. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | ( 13) Subsequent Events: On May 8, 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 June 5, 2018 to shareholders of record on May 22, 2018. |
Summary of Significant Accoun20
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2018 | |
Summary of Significant Accounting Policies [Abstract] | |
Description of Business | Description of Business: |
Basis of Presentation | Basis of Presentation: |
Investments | Investments : Short-term and other investments are carried at cost, which approximates their fair values. Realized gains and losses on disposals of investments are recorded on the trade date and are determined by specific identification of cost of investments sold and are included in income. Fixed maturity securities are considered to be available-for-sale. The related unrealized net gains or losses (net of applicable tax effects) on fixed maturity securities are reflected directly in shareholders' equity. Included within available for sale fixed maturity securities are convertible debt securities. A portion of the changes in fair values of convertible debt securities are reflected as a component of net realized gains on investments, excluding impairment losses within the condensed consolidated statements of income. Equity securities are recorded at fair value with unrealized net gains or losses reflected as a component of net unrealized gains (losses) on equity securities and limited partnership investments within the condensed consolidated statements of income. In accordance with the Financial Accounting Standards Board's ("FASB") other-than-temporary impairment guidance, if a fixed maturity security is in an unrealized loss position and the Company has the intent to sell the fixed maturity security, or it is more likely than not that the Company will have to sell the fixed maturity security before recovery of its amortized cost basis, the decline in value is deemed to be other-than-temporary and is recorded to net realized losses on investments in the condensed consolidated statements of income. For impaired fixed maturity securities that the Company does not intend to sell or in cases where it is more likely than not that the Company will not have to sell such securities, but the Company expects that it will not fully recover the amortized cost basis, the credit component of the other-than-temporary impairment is recognized in net realized losses on investments in the condensed consolidated statements of income and the non-credit component of the other-than-temporary impairment is recognized directly in shareholders' equity (accumulated other comprehensive income (loss)). 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. |
Revenue Recognition | Revenue Recognition: |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements: not have a material impact on the Company's condensed 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 changed 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. Previously, the Company's equity securities were classified as available-for-sale and changes in fair value were recognized in accumulated other comprehensive income (loss) as a component of shareholders' equity. ASU 2016-01 became effective for interim and annual reporting periods beginning after December 15, 2017. The Company adopted the new guidance as of January 1, 2018 using the modified retrospective approach and recorded a cumulative-effect adjustment to reclassify unrealized gains on equity securities of $71,012 ($46,157, net of tax) from other comprehensive income (loss) to retained earnings within the current period condensed consolidated balance sheet. Going forward, unrealized gains or losses on equity securities will be recognized in the condensed consolidated statement of income within net unrealized gains (losses) on equity securities and limited partnership investments. 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 became effective for interim and annual reporting periods beginning after December 15, 2017. The Company adopted the new guidance as of January 1, 2018. The adoption of the new guidance did not have a material impact on the Company's condensed consolidated financial statements. 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 was applied retrospectively and is effective for annual periods beginning after December 15, 2017, and interim periods within those years, with early adoption permitted. The Company adopted the new guidance as of January 1, 2018 and reclassified $4.0 million of restricted cash as of December 31, 2017 to the beginning cash balance within the March 31, 2018 condensed consolidated statement of cash flows. The adoption of the new guidance did not have a material impact on the Company's condensed consolidated financial statements. 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 (loss) to retained earnings, 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. Early adoption is permitted. The Company adopted the new guidance in the first quarter of 2018 and recorded a cumulative-effect adjustment to reclassify the tax effects on fixed maturity investments of $117 from other comprehensive income (loss) to retained earnings within the current period condensed consolidated balance sheet. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements: 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 January 2017, the FASB issued ASU No. 2017-04, Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment, or ASU 2017-04. This amendment removes Step 2 of the goodwill impairment test under current guidance. The new guidance requires an impairment charge to be recognized for the amount by which the carrying amount exceeds the reporting unit's fair value. ASU 2017-04 is effective for interim and annual reporting periods beginning after December 15, 2020, with early adoption permitted. The Company does not expect the guidance to have a material impact on its consolidated financial statements. |
Investments (Tables)
Investments (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Investments [Abstract] | |
Summary of available-for-sale securities | The following is a summary of available-for-sale securities at March 31, 2018 and December 31, 2017: Net Cost or Gross Gross Unrealized Fair Amortized Unrealized Unrealized Gains Value Cost Gains Losses (Losses) March 31, 2018 1 Fixed maturities Agency collateralized mortgage obligations 14,995 14,500 632 (137 ) 495 Agency mortgage-backed securities 30,740 31,312 32 (604 ) (572 ) Asset-backed securities 44,740 44,211 750 (221 ) 529 Bank loans 22,693 22,458 269 (34 ) 235 Certificates of deposit 3,127 3,124 3 - 3 Collateralized mortgage obligations 5,727 5,382 370 (25 ) 345 Corporate securities 213,462 216,105 1,180 (3,823 ) (2,643 ) Mortgage-backed securities 23,620 23,398 581 (359 ) 222 Municipal obligations 48,764 48,971 290 (497 ) (207 ) Non-U.S. government obligations 38,848 39,539 413 (1,104 ) (691 ) U.S. government obligations 97,400 98,231 20 (851 ) (831 ) Total $ 544,116 $ 547,231 $ 4,540 $ (7,655 ) $ (3,115 ) Net Cost or Gross Gross Unrealized Fair Amortized Unrealized Unrealized Gains Value Cost Gains Losses (Losses) December 31, 2017 1 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 1 Effective January 1, 2018, the Company adopted ASU No. 2016-01 and equity securities are no longer classified as available-for-sale. Prior periods have not been restated to conform to the current presentation. See Note 1 – Recently Adopted Accounting Pronouncements for further discussion. |
Fixed maturity and equity security investments in unrealized loss position | The following table summarizes, for available-for-sale fixed maturities in an unrealized loss position at March 31, 2018 and available-for-sale fixed maturities and equity securities in an unrealized loss position at December 31, 2017, respectively, the aggregate fair value and gross unrealized loss categorized by the duration individual securities have been continuously in an unrealized loss position. March 31, 2018 December 31, 2017 Number of Securities Fair Value Gross Unrealized Loss Number of Securities Fair Value Gross Unrealized Loss Fixed maturity securities: 12 months or less 491 $ 336,083 $ (5,580 ) 459 $ 313,421 $ (2,683 ) Greater than 12 months 105 66,574 (2,075 ) 112 75,638 (2,155 ) Total fixed maturities 596 402,657 (7,655 ) 571 389,059 (4,838 ) Equity securities 1 12 months or less - - - 65 46,654 (2,218 ) Greater than 12 months - - - - - - Total equity securities - - - 65 46,654 (2,218 ) Total fixed maturity and equity securities 596 $ 402,657 $ (7,655 ) 636 $ 435,713 $ (7,056 ) 1 |
Fair value and cost or amortized cost of fixed maturity investments by contractual maturity | Pre-refunded municipal bonds are classified based on their pre-refunded call dates. Fair Value Cost or Amortized Cost One year or less $ 38,435 $ 38,652 Excess of one year to five years 310,711 314,263 Excess of five years to ten years 78,116 78,539 Excess of ten years 2,747 2,781 Contractual maturities 430,009 434,235 Asset-backed securities 114,107 112,996 Total $ 544,116 $ 547,231 |
Net realized and unrealized gains (losses) on investments | Following is a summary of the components of net realized and unrealized gains (losses) on investments for the periods presented in the accompanying condensed consolidated statements of income. Three Months Ended March 31 2018 2017 Gross gains on available-for-sale investments sold during the period: Fixed maturities $ 2,443 $ 888 Equity securities 1 - 1,606 Total gains 2,443 2,494 Gross losses on available-for-sale investments sold during the period: Fixed maturities (2,708 ) (1,373 ) Equity securities 1 - (113 ) Total losses (2,708 ) (1,486 ) Other-than-temporary impairments - - Change in value of limited partnership investments (2,603 ) 5,286 Gains (losses) on equity securities: Realized gains on equity securities sold during the period 2 641 - Unrealized losses on equity securities held at the end of the period (2,306 ) - Realized and unrealized losses on equity securities held at the end of the period (1,665 ) - Net realized and unrealized gains (losses) on investments $ (4,533 ) $ 6,294 1 2 |
Reinsurance (Tables)
Reinsurance (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Reinsurance [Abstract] | |
Reinsurance | The following table summarizes the Company's transactions with reinsurers for the 2018 and 2017 comparative periods. 2018 2017 Three months ended March 31: Premiums ceded to reinsurers $ 32,442 $ 31,308 Losses and loss expenses ceded to reinsurers 26,661 19,474 Commissions from reinsurers 7,880 7,408 |
Loss and Loss Expense Reserves
Loss and Loss Expense Reserves (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Loss and Loss Expense Reserves [Abstract] | |
Summary of activity in reserves for losses and loss expenses | Activity in the reserves for losses and loss expenses for the three months ended March 31, 2018 and 2017 is summarized as follows. All amounts are shown net of reinsurance, unless otherwise indicated. 2018 2017 Reserves, gross of reinsurance recoverable, at the beginning of the year $ 680,274 $ 576,330 Reinsurance recoverable on unpaid losses at the beginning of the year 308,143 251,563 Reserves at the beginning of the year 372,131 324,767 Provision for losses and loss expenses: Claims occurring during the current period 73,899 48,487 Claims occurring during prior periods (1,601 ) 112 Total incurred 72,298 48,599 Loss and loss expense payments: Claims occurring during the current period 10,683 9,508 Claims occurring during prior periods 48,655 41,814 Total paid 59,338 51,322 Reserves at the end of the period 385,091 322,044 Reinsurance recoverable on unpaid losses at the end of the period 309,359 256,797 Reserves, gross of reinsurance recoverable, at the end of the period $ 694,450 $ 578,841 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Segment Information [Abstract] | |
Summary of segment revenues | The following table summarizes segment revenues for the three months ended March 31, 2018 and 2017: Three Months Ended March 31 2018 2017 Revenues: Net premiums earned $ 105,462 $ 73,974 Net investment income 4,636 3,692 Net realized and unrealized gains (losses) on investments (4,533 ) 6,294 Commissions and other income 1,814 981 Total revenues $ 107,379 $ 84,941 |
Fair Value (Tables)
Fair Value (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value [Abstract] | |
Fair value measurements by level for assets measured at fair value on a recurring basis | The following tables summarize fair value measurements by level for assets measured at fair value on a recurring basis: As of March 31, 2018: Description Total Level 1 Level 2 Level 3 Fixed maturities: Agency collateralized mortgage obligations $ 14,995 $ - $ 14,995 $ - Agency mortgage-backed securities 30,740 - 30,740 - Asset-backed securities 44,740 - 44,740 - Bank loans 22,693 - 22,693 - Certificates of deposit 3,127 3,127 - - Collateralized mortgage obligations 5,727 - 5,727 - Corporate securities 208,270 - 208,270 - Options embedded in convertible securities 5,192 - 5,192 - Mortgage-backed securities 23,620 - 23,620 - Municipal obligations 48,764 - 48,764 - Non-U.S. government obligations 38,848 - 38,848 - U.S. government obligations 97,400 - 97,400 - Total fixed maturities 544,116 3,127 540,989 - Equity securities: Consumer 27,519 27,519 - - Energy 6,636 6,636 - - Financial 47,771 47,771 - - Industrial 11,671 11,671 - - Technology 8,203 8,203 - - Funds (e.g. mutual funds, closed end funds, ETFs) 37,375 32,364 5,011 - Other 9,852 9,852 - - Total equity securities 149,027 144,016 5,011 - Short-term 1,000 1,000 - - Cash equivalents 76,639 - 76,639 - Total $ 770,782 $ 148,143 $ 622,639 $ - 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 $ - |
Reconciliation of beginning and ending balances of assets measured at fair value on a recurring basis using level 3 inputs | A reconciliation of the beginning and ending balances of assets measured at fair value on a recurring basis using Level 3 inputs is as follows for the three months ended March 31, 2018 and for the year ended December 31, 2017: 2018 2017 Beginning of period balance $ - $ 25,218 Total gains or losses (realized) included in income - 406 Purchases - 81 Settlements - (9,123 ) Transfers into Level 3 - 144 Transfers out of Level 3 - (16,726 ) End of period balance $ - $ - |
Summary of the carrying value and fair value by level of financial instruments | A summary of the carrying value and fair value by level of financial instruments not recorded at fair value on the Company's condensed consolidated balance sheets at March 31, 2018 and December 31, 2017 is as follows: Carrying Fair Value Value Level 1 Level 2 Level 3 Total March 31, 2018 Assets: Limited partnerships $ 68,403 $ - $ - $ 68,403 $ 68,403 Liabilities: Short-term borrowings 20,000 - 20,000 - 20,000 December 31, 2017 Assets: Limited partnerships 70,806 - - 70,806 70,806 Liabilities: Short-term borrowings 20,000 - 20,000 - 20,000 |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Stock Based Compensation [Abstract] | |
Detail of restricted stock issuances | The table below provides detail of the restricted stock issuances to directors for 2017 and 2018: Grant Date Grant Number of Shares Vesting Service Fair Value Date Issued Date Period Per Share 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 2/9/2018 408 5/9/2018 2/9/2018 - 6/30/2018 $ 24.20 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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 December 31, 2017 2,623,109 $ 112 12,423,518 $ 530 $ 55,078 Restricted stock grants - - 5,064 - 478 Repurchase of common shares - - (10,500 ) - (45 ) Balance at March 31, 2018 2,623,109 $ 112 12,418,082 $ 530 $ 55,511 |
Components of equity | The change in equity for the three months ended March 31, 2018 was as follows: Total equity Balance at December 31, 2017 $ 418,811 Net income 330 Other comprehensive loss (3,344 ) Cash dividends paid to shareholders (4,229 ) Restricted stock grants 478 Repurchase of common shares (235 ) Balance at March 31, 2018 $ 411,811 The change in equity for the three months ended March 31, 2017 was as follows: Total equity Balance at December 31, 2016 $ 404,345 Net income 6,756 Other comprehensive income 5,400 Cash dividends paid to shareholders (4,080 ) Restricted stock grants 481 Balance at March 31, 2017 $ 412,902 |
Changes in accumulated other comprehensive income (loss) by component | The following table illustrates changes in accumulated other comprehensive income (loss) by component for the three months ended March 31, 2018: Unrealized holding gains on Foreign available-for-sale Currency securities Total Beginning balance at December 31, 2017 $ (309 ) $ 46,700 $ 46,391 Cumulative effect of adoption of ASU 2016-01, net of tax - (46,157 ) (46,157 ) Balance at January 1, 2018 (309 ) 543 234 Cumulative effect of adoption of ASU 2018-02 - 117 117 Other comprehensive loss before reclassifications (223 ) (2,998 ) (3,221 ) Amounts reclassified from accumulated other comprehensive income (loss) - (123 ) (123 ) Net current-period other comprehensive loss (223 ) (3,121 ) (3,344 ) Ending balance at March 31, 2018 $ (532 ) $ (2,461 ) $ (2,993 ) The following table illustrates changes in accumulated other comprehensive income by component for the three months ended March 31, 2017: Unrealized holding gains on Foreign available-for-sale Currency securities Total Beginning balance at December 31, 2016 $ (831 ) $ 34,051 $ 33,220 Other comprehensive income before reclassifications 65 5,990 6,055 Amounts reclassified from accumulated other comprehensive income - (655 ) (655 ) Net current-period other comprehensive income 65 5,335 5,400 Ending balance at March 31, 2017 $ (766 ) $ 39,386 $ 38,620 |
Summary of Significant Accoun28
Summary of Significant Accounting Policies (Details) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018USD ($)Segment | Dec. 31, 2017USD ($) | |
Description of Business [Abstract] | ||
Number of reportable segments | Segment | 1 | |
Recently Adopted Accounting Pronouncements [Abstract] | ||
Restricted cash | $ 4,024 | $ 4,033 |
Corporate income tax rate | 21.00% | 35.00% |
ASU 2016-01 [Member] | ||
Recently Adopted Accounting Pronouncements [Abstract] | ||
Cumulative-effect adjustment to reclassify unrealized gains on equity securities after tax | $ (46,157) | |
ASU 2016-18 [Member] | ||
Recently Adopted Accounting Pronouncements [Abstract] | ||
Restricted cash | $ 4,000 | |
ASU 2018-02 [Member] | ||
Recently Adopted Accounting Pronouncements [Abstract] | ||
Cumulative-effect adjustment to reclassify unrealized gains on equity securities after tax | 117 | |
Other Comprehensive Income (Loss) [Member] | ASU 2016-01 [Member] | ||
Recently Adopted Accounting Pronouncements [Abstract] | ||
Cumulative-effect adjustment to reclassify unrealized gains on equity securities before tax | 71,012 | |
Cumulative-effect adjustment to reclassify unrealized gains on equity securities after tax | 46,157 | |
Other Comprehensive Income (Loss) [Member] | ASU 2018-02 [Member] | ||
Recently Adopted Accounting Pronouncements [Abstract] | ||
Cumulative-effect adjustment to reclassify unrealized gains on equity securities after tax | 117 | |
Retained Earnings [Member] | ASU 2016-01 [Member] | ||
Recently Adopted Accounting Pronouncements [Abstract] | ||
Cumulative-effect adjustment to reclassify unrealized gains on equity securities before tax | 71,012 | |
Cumulative-effect adjustment to reclassify unrealized gains on equity securities after tax | $ 46,157 | |
Retained Earnings [Member] | ASU 2018-02 [Member] | ||
Recently Adopted Accounting Pronouncements [Abstract] | ||
Cumulative-effect adjustment to reclassify unrealized gains on equity securities after tax | $ 117 |
Investments (Details)
Investments (Details) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2018USD ($)Security | Mar. 31, 2017USD ($) | Dec. 31, 2017USD ($)Security | ||
Available-for-sale Securities, Fair Value to Amortized Cost Basis [Abstract] | ||||
Fair value | $ 723,616 | |||
Cost or amortized cost | 651,768 | |||
Gross unrealized gains | 78,904 | |||
Gross unrealized losses | (7,056) | |||
Net unrealized gains (losses) | $ 71,848 | |||
Available-for-sale Securities Continuous Unrealized Loss Position [Abstract] | ||||
Number of securities, total | Security | [1] | 596 | 636 | |
Available-for-sale Securities Continuous Unrealized Loss Position, Fair Value [Abstract] | ||||
Fair value, total | [1] | $ 402,657 | $ 435,713 | |
Available-for-sale Securities Continuous Unrealized Loss Position, Aggregate Losses [Abstract] | ||||
Gross unrealized loss, total | [1] | (7,655) | (7,056) | |
Gross gains on available-for-sale investments sold during the period [Abstract] | ||||
Total gains | 2,443 | $ 2,494 | ||
Gross losses on available-for-sale investments sold during the period [Abstract] | ||||
Total losses | (2,708) | (1,486) | ||
Other-than-temporary impairments | 0 | 0 | ||
Change in value of limited partnership investments | (2,603) | 5,286 | ||
Gains (losses) on equity securities [Abstract] | ||||
Realized gains on equity securities sold during the period | [2] | 641 | 0 | |
Unrealized losses on equity securities held at the end of the period | (2,306) | 0 | ||
Realized and unrealized losses on equity securities held at the end of the period | (1,665) | 0 | ||
Net realized and unrealized gains (losses) on investments | (4,533) | 6,294 | ||
Proceeds from sales of equity securities | 59,757 | 7,054 | ||
Realized gains on equity securities | 35,141 | |||
Federal income taxes | 31,166 | |||
Fixed Maturities [Member] | ||||
Available-for-sale Debt Securities, Amortized Cost Basis [Abstract] | ||||
Fair value | 544,116 | |||
Cost or amortized cost | 547,231 | |||
Available-for-sale Securities Debt Maturities Fair Value [Abstract] | ||||
One year or less, Fair Value | 38,435 | |||
Excess of one year to five years, Fair Value | 310,711 | |||
Excess of five years to ten years, Fair Value | 78,116 | |||
Excess of ten years, Fair Value | 2,747 | |||
Total contractual maturities, Fair Value | 430,009 | |||
Asset-backed securities, Fair Value | 114,107 | |||
Total, Fair Value | 544,116 | |||
Available-for-sale Securities Debt Maturities Amortized Cost Basis [Abstract] | ||||
One year or less, Cost or Amortized Cost | 38,652 | |||
Excess of one year to five years, Cost or Amortized Cost | 314,263 | |||
Excess of five years to ten years, Cost or Amortized Cost | 78,539 | |||
Excess of ten years, Cost or Amortized Cost | 2,781 | |||
Total contractual maturities, Cost or Amortized Cost | 434,235 | |||
Asset-backed securities, Cost or Amortized Cost | 112,996 | |||
Cost or amortized cost | 547,231 | |||
Gross gains on available-for-sale investments sold during the period [Abstract] | ||||
Total gains | 2,443 | 888 | ||
Gross losses on available-for-sale investments sold during the period [Abstract] | ||||
Total losses | (2,708) | (1,373) | ||
Agency Collateralized Mortgage Obligations [Member] | ||||
Available-for-sale Debt Securities, Amortized Cost Basis [Abstract] | ||||
Fair value | 14,995 | 16,586 | ||
Cost or amortized cost | 14,500 | 15,839 | ||
Gross unrealized gains | 632 | 818 | ||
Gross unrealized losses | (137) | (71) | ||
Net unrealized gains (losses) | 495 | 747 | ||
Available-for-sale Securities Debt Maturities Fair Value [Abstract] | ||||
Total, Fair Value | 14,995 | 16,586 | ||
Available-for-sale Securities Debt Maturities Amortized Cost Basis [Abstract] | ||||
Cost or amortized cost | 14,500 | 15,839 | ||
Agency Mortgage-backed Securities [Member] | ||||
Available-for-sale Debt Securities, Amortized Cost Basis [Abstract] | ||||
Fair value | 30,740 | 27,075 | ||
Cost or amortized cost | 31,312 | 27,180 | ||
Gross unrealized gains | 32 | 47 | ||
Gross unrealized losses | (604) | (152) | ||
Net unrealized gains (losses) | (572) | (105) | ||
Available-for-sale Securities Debt Maturities Fair Value [Abstract] | ||||
Total, Fair Value | 30,740 | 27,075 | ||
Available-for-sale Securities Debt Maturities Amortized Cost Basis [Abstract] | ||||
Cost or amortized cost | 31,312 | 27,180 | ||
Asset-backed Securities [Member] | ||||
Available-for-sale Debt Securities, Amortized Cost Basis [Abstract] | ||||
Fair value | 44,740 | 43,469 | ||
Cost or amortized cost | 44,211 | 42,861 | ||
Gross unrealized gains | 750 | 749 | ||
Gross unrealized losses | (221) | (141) | ||
Net unrealized gains (losses) | 529 | 608 | ||
Available-for-sale Securities Debt Maturities Fair Value [Abstract] | ||||
Total, Fair Value | 44,740 | 43,469 | ||
Available-for-sale Securities Debt Maturities Amortized Cost Basis [Abstract] | ||||
Cost or amortized cost | 44,211 | 42,861 | ||
Bank Loans [Member] | ||||
Available-for-sale Debt Securities, Amortized Cost Basis [Abstract] | ||||
Fair value | 22,693 | 19,488 | ||
Cost or amortized cost | 22,458 | 19,271 | ||
Gross unrealized gains | 269 | 266 | ||
Gross unrealized losses | (34) | (49) | ||
Net unrealized gains (losses) | 235 | 217 | ||
Available-for-sale Securities Debt Maturities Fair Value [Abstract] | ||||
Total, Fair Value | 22,693 | 19,488 | ||
Available-for-sale Securities Debt Maturities Amortized Cost Basis [Abstract] | ||||
Cost or amortized cost | 22,458 | 19,271 | ||
Certificates of Deposit [Member] | ||||
Available-for-sale Debt Securities, Amortized Cost Basis [Abstract] | ||||
Fair value | 3,127 | 3,135 | ||
Cost or amortized cost | 3,124 | 3,124 | ||
Gross unrealized gains | 3 | 11 | ||
Gross unrealized losses | 0 | 0 | ||
Net unrealized gains (losses) | 3 | 11 | ||
Available-for-sale Securities Debt Maturities Fair Value [Abstract] | ||||
Total, Fair Value | 3,127 | 3,135 | ||
Available-for-sale Securities Debt Maturities Amortized Cost Basis [Abstract] | ||||
Cost or amortized cost | 3,124 | 3,124 | ||
Collateralized Mortgage Obligations [Member] | ||||
Available-for-sale Debt Securities, Amortized Cost Basis [Abstract] | ||||
Fair value | 5,727 | 6,492 | ||
Cost or amortized cost | 5,382 | 6,079 | ||
Gross unrealized gains | 370 | 451 | ||
Gross unrealized losses | (25) | (38) | ||
Net unrealized gains (losses) | 345 | 413 | ||
Available-for-sale Securities Debt Maturities Fair Value [Abstract] | ||||
Total, Fair Value | 5,727 | 6,492 | ||
Available-for-sale Securities Debt Maturities Amortized Cost Basis [Abstract] | ||||
Cost or amortized cost | 5,382 | 6,079 | ||
Corporate Securities [Member] | ||||
Available-for-sale Debt Securities, Amortized Cost Basis [Abstract] | ||||
Fair value | 213,462 | 198,349 | ||
Cost or amortized cost | 216,105 | 198,419 | ||
Gross unrealized gains | 1,180 | 1,602 | ||
Gross unrealized losses | (3,823) | (1,672) | ||
Net unrealized gains (losses) | (2,643) | (70) | ||
Available-for-sale Securities Debt Maturities Fair Value [Abstract] | ||||
Total, Fair Value | 213,462 | 198,349 | ||
Available-for-sale Securities Debt Maturities Amortized Cost Basis [Abstract] | ||||
Cost or amortized cost | 216,105 | 198,419 | ||
Mortgage-backed Securities [Member] | ||||
Available-for-sale Debt Securities, Amortized Cost Basis [Abstract] | ||||
Fair value | 23,620 | 24,204 | ||
Cost or amortized cost | 23,398 | 23,656 | ||
Gross unrealized gains | 581 | 933 | ||
Gross unrealized losses | (359) | (385) | ||
Net unrealized gains (losses) | 222 | 548 | ||
Available-for-sale Securities Debt Maturities Fair Value [Abstract] | ||||
Total, Fair Value | 23,620 | 24,204 | ||
Available-for-sale Securities Debt Maturities Amortized Cost Basis [Abstract] | ||||
Cost or amortized cost | 23,398 | 23,656 | ||
Municipal Obligations [Member] | ||||
Available-for-sale Debt Securities, Amortized Cost Basis [Abstract] | ||||
Fair value | 48,764 | 96,650 | ||
Cost or amortized cost | 48,971 | 97,059 | ||
Gross unrealized gains | 290 | 322 | ||
Gross unrealized losses | (497) | (731) | ||
Net unrealized gains (losses) | (207) | (409) | ||
Available-for-sale Securities Debt Maturities Fair Value [Abstract] | ||||
Total, Fair Value | 48,764 | 96,650 | ||
Available-for-sale Securities Debt Maturities Amortized Cost Basis [Abstract] | ||||
Cost or amortized cost | 48,971 | 97,059 | ||
Non-U.S. Government Obligations [Member] | ||||
Available-for-sale Debt Securities, Amortized Cost Basis [Abstract] | ||||
Fair value | 38,848 | 37,394 | ||
Cost or amortized cost | 39,539 | 37,971 | ||
Gross unrealized gains | 413 | 475 | ||
Gross unrealized losses | (1,104) | (1,052) | ||
Net unrealized gains (losses) | (691) | (577) | ||
Available-for-sale Securities Debt Maturities Fair Value [Abstract] | ||||
Total, Fair Value | 38,848 | 37,394 | ||
Available-for-sale Securities Debt Maturities Amortized Cost Basis [Abstract] | ||||
Cost or amortized cost | 39,539 | 37,971 | ||
U.S. Government Obligations [Member] | ||||
Available-for-sale Debt Securities, Amortized Cost Basis [Abstract] | ||||
Fair value | 97,400 | 49,011 | ||
Cost or amortized cost | 98,231 | 49,558 | ||
Gross unrealized gains | 20 | 0 | ||
Gross unrealized losses | (851) | (547) | ||
Net unrealized gains (losses) | (831) | (547) | ||
Available-for-sale Securities Debt Maturities Fair Value [Abstract] | ||||
Total, Fair Value | 97,400 | 49,011 | ||
Available-for-sale Securities Debt Maturities Amortized Cost Basis [Abstract] | ||||
Cost or amortized cost | 98,231 | 49,558 | ||
Total Fixed Maturities [Member] | ||||
Available-for-sale Debt Securities, Amortized Cost Basis [Abstract] | ||||
Fair value | 544,116 | 521,853 | ||
Cost or amortized cost | 547,231 | 521,017 | ||
Gross unrealized gains | 4,540 | 5,674 | ||
Gross unrealized losses | (7,655) | (4,838) | ||
Net unrealized gains (losses) | $ (3,115) | $ 836 | ||
Available-for-sale Securities Continuous Unrealized Loss Position [Abstract] | ||||
Number of securities, 12 months or less | Security | 491 | 459 | ||
Number of securities, Greater than 12 months | Security | 105 | 112 | ||
Number of securities, total | Security | 596 | 571 | ||
Available-for-sale Securities Continuous Unrealized Loss Position, Fair Value [Abstract] | ||||
Fair value, 12 months or less | $ 336,083 | $ 313,421 | ||
Fair value, Greater than 12 months | 66,574 | 75,638 | ||
Fair value, total | 402,657 | 389,059 | ||
Available-for-sale Securities Continuous Unrealized Loss Position, Aggregate Losses [Abstract] | ||||
Gross unrealized loss, 12 months or less | (5,580) | (2,683) | ||
Gross unrealized loss, Greater than 12 months | (2,075) | (2,155) | ||
Gross unrealized loss, total | (7,655) | (4,838) | ||
Available-for-sale Securities Debt Maturities Fair Value [Abstract] | ||||
Total, Fair Value | 544,116 | 521,853 | ||
Available-for-sale Securities Debt Maturities Amortized Cost Basis [Abstract] | ||||
Cost or amortized cost | 547,231 | 521,017 | ||
Equity Securities [Member] | ||||
Gross gains on available-for-sale investments sold during the period [Abstract] | ||||
Total gains | [1] | 0 | 1,606 | |
Gross losses on available-for-sale investments sold during the period [Abstract] | ||||
Total losses | [1] | $ 0 | $ (113) | |
Consumer [Member] | ||||
Available-for-sale Equity Securities, Amortized Cost Basis [Abstract] | ||||
Fair value | [1] | 46,578 | ||
Cost or amortized cost | 23,565 | |||
Gross unrealized gains | 24,031 | |||
Gross unrealized losses | (1,018) | |||
Net unrealized gains (losses) | 23,013 | |||
Energy [Member] | ||||
Available-for-sale Equity Securities, Amortized Cost Basis [Abstract] | ||||
Fair value | [1] | 10,278 | ||
Cost or amortized cost | 6,763 | |||
Gross unrealized gains | 3,602 | |||
Gross unrealized losses | (87) | |||
Net unrealized gains (losses) | 3,515 | |||
Financial [Member] | ||||
Available-for-sale Equity Securities, Amortized Cost Basis [Abstract] | ||||
Fair value | [1] | 45,470 | ||
Cost or amortized cost | 31,859 | |||
Gross unrealized gains | 13,937 | |||
Gross unrealized losses | (326) | |||
Net unrealized gains (losses) | 13,611 | |||
Industrial [Member] | ||||
Available-for-sale Equity Securities, Amortized Cost Basis [Abstract] | ||||
Fair value | [1] | 25,402 | ||
Cost or amortized cost | 8,949 | |||
Gross unrealized gains | 16,793 | |||
Gross unrealized losses | (340) | |||
Net unrealized gains (losses) | 16,453 | |||
Technology [Member] | ||||
Available-for-sale Equity Securities, Amortized Cost Basis [Abstract] | ||||
Fair value | [1] | 13,061 | ||
Cost or amortized cost | 5,768 | |||
Gross unrealized gains | 7,401 | |||
Gross unrealized losses | (108) | |||
Net unrealized gains (losses) | 7,293 | |||
Funds (e.g. mutual funds, closed end funds, ETFs) [Member] | ||||
Available-for-sale Equity Securities, Amortized Cost Basis [Abstract] | ||||
Fair value | [1] | 50,291 | ||
Cost or amortized cost | 46,177 | |||
Gross unrealized gains | 4,153 | |||
Gross unrealized losses | (39) | |||
Net unrealized gains (losses) | 4,114 | |||
Other [Member] | ||||
Available-for-sale Equity Securities, Amortized Cost Basis [Abstract] | ||||
Fair value | [1] | 10,683 | ||
Cost or amortized cost | 7,670 | |||
Gross unrealized gains | 3,313 | |||
Gross unrealized losses | (300) | |||
Net unrealized gains (losses) | 3,013 | |||
Total Equity Securities [Member] | ||||
Available-for-sale Equity Securities, Amortized Cost Basis [Abstract] | ||||
Fair value | 201,763 | |||
Cost or amortized cost | 130,751 | |||
Gross unrealized gains | 73,230 | |||
Gross unrealized losses | (2,218) | |||
Net unrealized gains (losses) | $ 71,012 | |||
Available-for-sale Securities Continuous Unrealized Loss Position [Abstract] | ||||
Number of securities, 12 months or less | Security | [1] | 0 | 65 | |
Number of securities, Greater than 12 months | Security | [1] | 0 | 0 | |
Number of securities, total | Security | [1] | 0 | 65 | |
Available-for-sale Securities Continuous Unrealized Loss Position, Fair Value [Abstract] | ||||
Fair value, 12 months or less | [1] | $ 0 | $ 46,654 | |
Fair value, Greater than 12 months | [1] | 0 | 0 | |
Fair value, total | [1] | 0 | 46,654 | |
Available-for-sale Securities Continuous Unrealized Loss Position, Aggregate Losses [Abstract] | ||||
Gross unrealized loss, 12 months or less | [1] | 0 | (2,218) | |
Gross unrealized loss, Greater than 12 months | [1] | 0 | 0 | |
Gross unrealized loss, total | [1] | $ 0 | $ (2,218) | |
[1] | Effective January 1, 2018, the Company adopted ASU No. 2016-01 and equity securities are no longer classified as available-for-sale. Prior periods have not been restated to conform to the current presentation. See Note 1 - Recently Adopted Accounting Pronouncements for further discussion. | |||
[2] | During the three months ended March 31, 2018, the Company sold $59,757 in equity securities resulting in a realized gain of $35,141. The majority of this gain was included in unrealized gains within other comprehensive income at December 31, 2017 and, as a result of the adoption of ASU 2016-01, was reclassified to retained earnings as of January 1, 2018 and was therefore not recognized in the condensed consolidated statement of income for the three months ended March 31, 2018. |
Reinsurance (Details)
Reinsurance (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Reinsurance [Abstract] | ||
Premiums ceded to reinsurers | $ 32,442 | $ 31,308 |
Losses and loss expenses ceded to reinsurers | 26,661 | 19,474 |
Commissions from reinsurers | $ 7,880 | $ 7,408 |
Loss and Loss Expense Reserve31
Loss and Loss Expense Reserves (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Activity in the reserve for losses and loss expenses [Roll Forward] | ||
Reserves, gross of reinsurance recoverable, at the beginning of the year | $ 680,274 | $ 576,330 |
Reinsurance recoverable on unpaid losses at the beginning of the year | 308,143 | 251,563 |
Reserves at the beginning of the year | 372,131 | 324,767 |
Provision for losses and loss expenses [Abstract] | ||
Claims occurring during the current period | 73,899 | 48,487 |
Claims occurring during prior periods | (1,601) | 112 |
Total incurred | 72,298 | 48,599 |
Loss and loss expense payments [Abstract] | ||
Claims occurring during the current period | 10,683 | 9,508 |
Claims occurring during prior periods | 48,655 | 41,814 |
Total paid | 59,338 | 51,322 |
Reserves at the end of the period | 385,091 | 322,044 |
Reinsurance recoverable on unpaid losses at the end of the period | 309,359 | 256,797 |
Reserves, gross of reinsurance recoverable, at the end of the period | $ 694,450 | $ 578,841 |
Segment Information (Details)
Segment Information (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018USD ($)Segment | Mar. 31, 2017USD ($) | |
Segment Information [Abstract] | ||
Number of reportable segments | Segment | 1 | |
Summary of Segment Revenue [Abstract] | ||
Net premiums earned | $ 105,462 | $ 73,974 |
Net investment income | 4,636 | 3,692 |
Net realized and unrealized gains (losses) on investments | (4,533) | 6,294 |
Commissions and other income | 1,814 | 981 |
Total revenues | 107,379 | 84,941 |
Property and Casualty Insurance [Member] | ||
Summary of Segment Revenue [Abstract] | ||
Net premiums earned | 105,462 | 73,974 |
Net investment income | 4,636 | 3,692 |
Net realized and unrealized gains (losses) on investments | (4,533) | 6,294 |
Commissions and other income | 1,814 | 981 |
Total revenues | $ 107,379 | $ 84,941 |
Debt (Details)
Debt (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Dec. 31, 2017 | |
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 | 2.96% | |
Remaining amount under line of credit | $ 20,000 |
Taxes (Details)
Taxes (Details) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Taxes [Abstract] | ||
Effective federal tax rate on consolidated income (loss) | (5.10%) | 33.60% |
Fair Value (Details)
Fair Value (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Fixed maturities [Abstract] | ||
Total fixed maturities | $ 544,116 | $ 521,853 |
Equity securities [Abstract] | ||
Total equity securities | 149,027 | 201,763 |
Recurring [Member] | ||
Fixed maturities [Abstract] | ||
Agency collateralized mortgage obligations | 14,995 | 16,586 |
Agency mortgage-backed securities | 30,740 | 27,075 |
Asset-backed securities | 44,740 | 43,469 |
Bank loans | 22,693 | 19,488 |
Certificates of deposit | 3,127 | 3,135 |
Collateralized mortgage obligations | 5,727 | 6,492 |
Corporate securities | 208,270 | 193,058 |
Options embedded in convertible securities | 5,192 | 5,291 |
Mortgage-backed securities | 23,620 | 24,204 |
Municipal obligations | 48,764 | 96,650 |
Non-U.S. government obligations | 38,848 | 37,394 |
U.S. government obligations | 97,400 | 49,011 |
Total fixed maturities | 544,116 | 521,853 |
Equity securities [Abstract] | ||
Consumer | 27,519 | 46,578 |
Energy | 6,636 | 10,278 |
Financial | 47,771 | 45,470 |
Industrial | 11,671 | 25,402 |
Technology | 8,203 | 13,061 |
Funds (e.g. mutual funds, closed end funds, ETFs) | 37,375 | 50,291 |
Other | 9,852 | 10,683 |
Total equity securities | 149,027 | 201,763 |
Short-term | 1,000 | 1,000 |
Cash equivalents | 76,639 | 59,173 |
Total fair value | 770,782 | 783,789 |
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 | 3,127 | 3,135 |
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 | 3,127 | 3,135 |
Equity securities [Abstract] | ||
Consumer | 27,519 | 46,578 |
Energy | 6,636 | 10,278 |
Financial | 47,771 | 45,470 |
Industrial | 11,671 | 25,402 |
Technology | 8,203 | 13,061 |
Funds (e.g. mutual funds, closed end funds, ETFs) | 32,364 | 45,276 |
Other | 9,852 | 10,683 |
Total equity securities | 144,016 | 196,748 |
Short-term | 1,000 | 1,000 |
Cash equivalents | 0 | 0 |
Total fair value | 148,143 | 200,883 |
Recurring [Member] | Level 2 [Member] | ||
Fixed maturities [Abstract] | ||
Agency collateralized mortgage obligations | 14,995 | 16,586 |
Agency mortgage-backed securities | 30,740 | 27,075 |
Asset-backed securities | 44,740 | 43,469 |
Bank loans | 22,693 | 19,488 |
Certificates of deposit | 0 | 0 |
Collateralized mortgage obligations | 5,727 | 6,492 |
Corporate securities | 208,270 | 193,058 |
Options embedded in convertible securities | 5,192 | 5,291 |
Mortgage-backed securities | 23,620 | 24,204 |
Municipal obligations | 48,764 | 96,650 |
Non-U.S. government obligations | 38,848 | 37,394 |
U.S. government obligations | 97,400 | 49,011 |
Total fixed maturities | 540,989 | 518,718 |
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) | 5,011 | 5,015 |
Other | 0 | 0 |
Total equity securities | 5,011 | 5,015 |
Short-term | 0 | 0 |
Cash equivalents | 76,639 | 59,173 |
Total fair value | 622,639 | 582,906 |
Recurring [Member] | Level 3 [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 | 0 | 0 |
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 | 0 | 0 |
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 | $ 0 |
Fair Value, Unobservable Input
Fair Value, Unobservable Input Reconciliation (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Fair Value Assets Measured on Recurring Basis Unobservable Input Reconciliation Calculation [Roll Forward] | ||
Beginning of period balance | $ 0 | $ 25,218 |
Total gains or losses (realized) included in income | 0 | 406 |
Purchases | 0 | 81 |
Settlements | 0 | (9,123) |
Transfers into Level 3 | 0 | 144 |
Transfers out of Level 3 | 0 | (16,726) |
End of period balance | $ 0 | $ 0 |
Fair Value, Balance Sheet Group
Fair Value, Balance Sheet Grouping (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Assets [Abstract] | ||
Limited partnerships | $ 68,403 | $ 70,806 |
Carrying Value [Member] | ||
Assets [Abstract] | ||
Limited partnerships | 68,403 | 70,806 |
Liabilities [Abstract] | ||
Short-term borrowings | 20,000 | 20,000 |
Fair Value [Member] | ||
Assets [Abstract] | ||
Limited partnerships | 68,403 | 70,806 |
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 | 68,403 | 70,806 |
Liabilities [Abstract] | ||
Short-term borrowings | $ 0 | $ 0 |
Stock Based Compensation (Detai
Stock Based Compensation (Details) - Class B [Member] $ / shares in Units, $ in Thousands | 3 Months Ended |
Mar. 31, 2018USD ($)$ / sharesshares | |
Restricted [Member] | |
Stock Based Compensation [Abstract] | |
Shares distribution period from grant date | 1 year |
Restricted [Member] | 5/10/2016 [Member] | |
Summary of stock Issuances [Abstract] | |
Number of shares issued (in shares) | 17,677 |
Vesting date | May 10, 2017 |
Service period | 7/1/2016 - 6/30/2017 |
Grant date fair value per share (in dollars per share) | $ / shares | $ 24.89 |
Restricted [Member] | 5/9/2017 [Member] | |
Summary of stock Issuances [Abstract] | |
Number of shares issued (in shares) | 18,183 |
Vesting date | May 9, 2018 |
Service period | 7/1/2017 - 6/30/2018 |
Grant date fair value per share (in dollars per share) | $ / shares | $ 24.20 |
Restricted [Member] | 8/31/2017 [Member] | |
Summary of stock Issuances [Abstract] | |
Number of shares issued (in shares) | 1,257 |
Vesting date | May 9, 2018 |
Service period | 8/31/2017 - 6/30/2018 |
Grant date fair value per share (in dollars per share) | $ / shares | $ 21.90 |
Restricted [Member] | 2/9/2018 [Member] | |
Summary of stock Issuances [Abstract] | |
Number of shares issued (in shares) | 408 |
Vesting date | May 9, 2018 |
Service period | 2/9/2018 - 6/30/2018 |
Grant date fair value per share (in dollars per share) | $ / shares | $ 24.20 |
2017 LTIP Awards [Member] | Performance Based Equity Award [Member] | |
Summary of stock Issuances [Abstract] | |
Number of shares issued (in shares) | 0 |
Vesting period | 3 years |
2017 VCIP Awards [Member] | Performance Based Equity Award [Member] | |
Summary of stock Issuances [Abstract] | |
Number of shares issued (in shares) | 0 |
Performance period | 3 years |
2018 LTIP Awards [Member] | Performance Based Equity Award [Member] | |
Summary of stock Issuances [Abstract] | |
Performance period | 1 year |
Vesting period | 3 years |
2018 VCIP Awards [Member] | Performance Based Equity Award [Member] | |
Summary of stock Issuances [Abstract] | |
Performance period | 3 years |
Vesting period | 3 years |
Stock based compensation expense | $ | $ 356 |
Shareholders' Equity (Details)
Shareholders' Equity (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Amount [Abstract] | ||
Restricted stock grants | $ 478 | $ 481 |
Repurchase of common shares | (235) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning balance | 418,811 | 404,345 |
Net income | 330 | 6,756 |
Other comprehensive income (loss) | (3,344) | 5,400 |
Cash dividends paid to shareholders | (4,229) | (4,080) |
Restricted stock grants | 478 | 481 |
Repurchase of common shares | (235) | |
Ending balance | $ 411,811 | $ 412,902 |
Class A [Member] | ||
Shares [Abstract] | ||
Balance, Beginning period (in shares) | 2,623,109 | |
Balance, Period end (in shares) | 2,623,109 | |
Class B [Member] | ||
Shares [Abstract] | ||
Balance, Beginning period (in shares) | 12,423,518 | |
Balance, Period end (in shares) | 12,418,082 | |
Common Stock [Member] | Class A [Member] | ||
Shares [Abstract] | ||
Balance, Beginning period (in shares) | 2,623,109 | |
Restricted stock grants (in shares) | 0 | |
Repurchase of common shares (in shares) | 0 | |
Balance, Period end (in shares) | 2,623,109 | |
Amount [Abstract] | ||
Balance, Beginning period | $ 112 | |
Restricted stock grants | 0 | |
Repurchase of common shares | 0 | |
Balance, Period end | 112 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Restricted stock grants | 0 | |
Repurchase of common shares | $ 0 | |
Common Stock [Member] | Class B [Member] | ||
Shares [Abstract] | ||
Balance, Beginning period (in shares) | 12,423,518 | |
Restricted stock grants (in shares) | 5,064 | |
Repurchase of common shares (in shares) | (10,500) | |
Balance, Period end (in shares) | 12,418,082 | |
Amount [Abstract] | ||
Balance, Beginning period | $ 530 | |
Restricted stock grants | 0 | |
Repurchase of common shares | 0 | |
Balance, Period end | 530 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Restricted stock grants | 0 | |
Repurchase of common shares | 0 | |
Additional Paid-in Capital [Member] | ||
Amount [Abstract] | ||
Balance, Beginning period | 55,078 | |
Restricted stock grants | 478 | |
Repurchase of common shares | (45) | |
Balance, Period end | 55,511 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Restricted stock grants | 478 | |
Repurchase of common shares | $ (45) |
Shareholders' Equity, Changes i
Shareholders' Equity, Changes in Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | $ 418,811 | $ 404,345 | |
Other comprehensive income (loss) before reclassifications | (3,221) | 6,055 | |
Amounts reclassified from accumulated other comprehensive income (loss) | (123) | (655) | |
Other comprehensive income (loss) | (3,344) | 5,400 | |
Ending balance | 411,811 | 412,902 | |
ASU 2016-01 [Member] | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Cumulative effect of adoption | (46,157) | ||
ASU 2018-02 [Member] | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Cumulative effect of adoption | 117 | ||
Other Comprehensive Income (Loss) [Member] | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | 46,391 | 33,220 | |
Ending balance | (2,993) | 38,620 | |
Other Comprehensive Income (Loss) [Member] | ASU 2016-01 [Member] | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | 234 | ||
Cumulative effect of adoption | $ 46,157 | ||
Other Comprehensive Income (Loss) [Member] | ASU 2018-02 [Member] | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Cumulative effect of adoption | 117 | ||
Foreign Currency [Member] | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (309) | (831) | |
Other comprehensive income (loss) before reclassifications | (223) | 65 | |
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | 0 | |
Other comprehensive income (loss) | (223) | 65 | |
Ending balance | (532) | (766) | |
Foreign Currency [Member] | ASU 2016-01 [Member] | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (309) | ||
Cumulative effect of adoption | 0 | ||
Foreign Currency [Member] | ASU 2018-02 [Member] | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Cumulative effect of adoption | 0 | ||
Unrealized Holding Gains on Available-for-sale Securities [Member] | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | 46,700 | 34,051 | |
Other comprehensive income (loss) before reclassifications | (2,998) | 5,990 | |
Amounts reclassified from accumulated other comprehensive income (loss) | (123) | (655) | |
Other comprehensive income (loss) | (3,121) | 5,335 | |
Ending balance | (2,461) | $ 39,386 | |
Unrealized Holding Gains on Available-for-sale Securities [Member] | ASU 2016-01 [Member] | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | 543 | ||
Cumulative effect of adoption | (46,157) | ||
Unrealized Holding Gains on Available-for-sale Securities [Member] | ASU 2018-02 [Member] | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Cumulative effect of adoption | $ 117 |
Related Parties (Details)
Related Parties (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018USD ($)PartnershipDirector | Mar. 31, 2017USD ($) | Dec. 31, 2017USD ($) | |
Related Party Transaction [Line Items] | |||
Market value of equity and fixed maturity securities portfolio managed by broker-dealers | $ 25,142 | ||
Total commissions and net fees earned by broker dealers and affiliates | 27 | $ 30 | |
Director [Member] | Consulting Contract [Member] | |||
Related Party Transaction [Line Items] | |||
Annual consulting contract fees | 300 | $ 300 | |
Director [Member] | Brokerage Agreement [Member] | |||
Related Party Transaction [Line Items] | |||
Total commission expense | 151 | ||
Director [Member] | Brokerage Agreement, Placement of Life Insurance [Member] | |||
Related Party Transaction [Line Items] | |||
Total commission expense | $ 350 | 155 | |
Limited Partnership [Member] | |||
Related Party Transaction [Line Items] | |||
Number of partnerships investment | Partnership | 3 | ||
Aggregate estimated value in limited partnership | $ 41,864 | ||
Number of directors that are executive officers, directors, and owners of the organization managing the limited partnership | Director | 2 | ||
Management fees | $ 192 | $ 173 | |
Limited Partnership [Member] | New Vernon India Fund [Member] | |||
Related Party Transaction [Line Items] | |||
Ownership interest in limited partnership | 6.00% | ||
Limited Partnership [Member] | New Vernon Global Opportunity Fund [Member] | |||
Related Party Transaction [Line Items] | |||
Ownership interest in limited partnership | 37.00% | ||
Limited Partnership [Member] | New Vernon Global Opportunity Fund II [Member] | |||
Related Party Transaction [Line Items] | |||
Ownership interest in limited partnership | 27.00% |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event [Member] - Dividend Declared Q2-2018 [Member] | May 08, 2018$ / shares |
Subsequent Event [Abstract] | |
Dividend payable, date declared | May 8, 2018 |
Dividend payable, date to be paid | Jun. 5, 2018 |
Dividend payable, date of record | May 22, 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 |