Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2020 | Aug. 04, 2020 | |
Entity Information [Line Items] | ||
Entity Registrant Name | PROTECTIVE INSURANCE CORPORATION | |
Entity Central Index Key | 0000009346 | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Shell Company | false | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 14,213,412 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q2 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 0-5534 | |
Entity Tax Identification Number | 35-0160330 | |
Entity Incorporation, State or Country Code | IN | |
Entity Address, Address Line One | 111 Congressional Boulevard | |
Entity Address, City or Town | Carmel | |
Entity Address, State or Province | IN | |
Entity Address, Postal Zip Code | 46032 | |
City Area Code | 317 | |
Local Phone Number | 636-9800 | |
Common Class A (voting) [Member] | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 2,603,350 | |
Title of 12(b) Security | Class A Common Stock, No Par Value | |
Trading Symbol | PTVCA | |
Security Exchange Name | NASDAQ | |
Common Class B (non-voting) [Member] | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 11,610,062 | |
Title of 12(b) Security | Class B Common Stock, No Par Value | |
Trading Symbol | PTVCB | |
Security Exchange Name | NASDAQ |
Unaudited Condensed Consolidate
Unaudited Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Investments: | ||
Fixed income securities | $ 812,001 | $ 795,538 |
Equity securities | 46,009 | 76,812 |
Limited partnerships | 7,393 | 23,292 |
Commercial mortgage loans | 11,875 | 11,782 |
Short-term and other | 1,000 | 1,000 |
Total Investments | 878,278 | 908,424 |
Cash and cash equivalents | 107,925 | 67,851 |
Restricted cash and cash equivalents | 9,780 | 21,037 |
Accounts receivable | 85,225 | 111,762 |
Reinsurance recoverable | 421,757 | 432,067 |
Other assets | 86,984 | 86,306 |
Current federal income taxes recoverable | 4,611 | 4,878 |
Deferred federal income taxes | 5,708 | 2,035 |
Total Assets | 1,600,268 | 1,634,360 |
Liabilities and shareholders' equity | ||
Reserves for losses and loss expenses | 1,015,360 | 988,305 |
Reserves for unearned premiums | 60,191 | 74,810 |
Reinsurance payable | 55,021 | 65,835 |
Short-term borrowings | 20,000 | 20,000 |
Accounts payable and other liabilities | 113,658 | 121,094 |
Total Liabilities | 1,264,230 | 1,270,044 |
Shareholders' equity: | ||
Additional paid-in capital | 53,692 | 53,349 |
Accumulated other comprehensive income | 7,893 | 9,369 |
Retained earnings | 273,846 | 300,988 |
Total Shareholders' Equity | 336,038 | 364,316 |
Total Liabilities and Shareholders' Equity | 1,600,268 | 1,634,360 |
Class A Voting [Member] | ||
Shareholders' equity: | ||
Common stock | 111 | 111 |
Class B Non-voting [Member] | ||
Shareholders' equity: | ||
Common stock | $ 496 | $ 499 |
Unaudited Condensed Consolida_2
Unaudited Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2020 | Dec. 31, 2019 |
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) | 2,603,350 | 2,603,350 |
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) | 11,610,062 | 11,675,956 |
Unaudited Condensed Consolida_3
Unaudited Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Revenues | ||||
Net premiums earned | $ 97,730 | $ 115,631 | $ 207,389 | $ 225,644 |
Net investment income | 6,379 | 6,500 | 13,616 | 12,732 |
Commissions and other income | 1,889 | 1,978 | 3,551 | 4,043 |
Net realized gains (losses) on investments, excluding impairment losses | (4,099) | 713 | (8,886) | 673 |
Impairment losses on investments | (418) | (86) | (458) | (346) |
Net unrealized gains (losses) on equity securities and limited partnership investments | 15,132 | 2,262 | (7,797) | 8,589 |
Net realized and unrealized gains (losses) on investments | 10,615 | 2,889 | (17,141) | 8,916 |
Total revenues | 116,613 | 126,998 | 207,415 | 251,335 |
Expenses | ||||
Losses and loss expenses incurred | 68,208 | 90,433 | 150,040 | 177,555 |
Other operating expenses | 34,198 | 34,615 | 68,307 | 68,316 |
Total expenses | 102,406 | 125,048 | 218,347 | 245,871 |
Income (loss) before federal income tax expense (benefit) | 14,207 | 1,950 | (10,932) | 5,464 |
Federal income tax expense (benefit) | 2,840 | 415 | (143) | 1,181 |
Net income (loss) | $ 11,367 | $ 1,535 | $ (10,789) | $ 4,283 |
Net income (loss) per share: | ||||
Basic (in dollars per share) | $ 0.81 | $ 0.11 | $ (0.76) | $ 0.28 |
Diluted (in dollars per share) | $ 0.80 | $ 0.11 | $ (0.76) | $ 0.28 |
Weighted average number of shares outstanding: | ||||
Basic (in shares) | 14,117 | 14,616 | 14,143 | 14,731 |
Dilutive effect of share equivalents (in shares) | 62 | 63 | 0 | 60 |
Diluted (in shares) | 14,179 | 14,679 | 14,143 | 14,791 |
Unaudited Condensed Consolida_4
Unaudited Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Unaudited Condensed Consolidated Statements of Comprehensive Income (Loss) [Abstract] | ||||
Net income (loss) | $ 11,367 | $ 1,535 | $ (10,789) | $ 4,283 |
Other comprehensive income (loss), net of tax: | ||||
Unrealized net gains (losses) on fixed income securities | 19,851 | 6,517 | (1,010) | 14,973 |
Foreign currency translation adjustments | 221 | 284 | (466) | 591 |
Net current-period other comprehensive income (loss) | 20,072 | 6,801 | (1,476) | 15,564 |
Comprehensive income (loss) | $ 31,439 | $ 8,336 | $ (12,265) | $ 19,847 |
Unaudited Condensed Consolida_5
Unaudited Condensed Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Retained Earnings [Member] | Total | Class A [Member]Common Stock [Member] | Class B [Member]Common Stock [Member] | Class B [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member]Additional Paid-in Capital [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member]Accumulated Other Comprehensive Income (Loss) [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member]Retained Earnings [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member]Class A [Member]Common Stock [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member]Class B [Member]Common Stock [Member] |
Beginning balance at Dec. 31, 2018 | $ 54,720 | $ (7,347) | $ 308,075 | $ 356,082 | $ 112 | $ 522 | |||||||
Beginning balance (in shares) at Dec. 31, 2018 | 2,615,000 | 12,254,000 | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Net loss (income) | 0 | 0 | 4,283 | 4,283 | $ 0 | $ 0 | |||||||
Foreign currency translation adjustment, net of tax | 0 | 591 | 0 | 591 | 0 | 0 | |||||||
Change in unrealized gain (loss) on investments, net of tax | 0 | 14,973 | 0 | 14,973 | 0 | 0 | |||||||
Common stock dividends | 0 | 0 | (2,987) | (2,987) | 0 | 0 | |||||||
Repurchase of common shares | (1,614) | 0 | (4,858) | (6,487) | $ 0 | $ (15) | |||||||
Repurchase of common shares (in shares) | (3,000) | (371,000) | |||||||||||
Restricted stock grants | 959 | 0 | 0 | 961 | $ 0 | $ 2 | |||||||
Restricted stock grants (in shares) | 0 | 49,000 | |||||||||||
Ending balance at Jun. 30, 2019 | 54,065 | 8,217 | 304,513 | 367,416 | $ 112 | $ 509 | |||||||
Ending balance (in shares) at Jun. 30, 2019 | 2,612,000 | 11,932,000 | |||||||||||
Beginning balance at Mar. 31, 2019 | 55,049 | 1,416 | 308,971 | 366,070 | $ 112 | $ 522 | |||||||
Beginning balance (in shares) at Mar. 31, 2019 | 2,615,000 | 12,249,000 | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Net loss (income) | 0 | 0 | 1,535 | 1,535 | $ 0 | $ 0 | |||||||
Foreign currency translation adjustment, net of tax | 0 | 284 | 0 | 284 | 0 | 0 | |||||||
Change in unrealized gain (loss) on investments, net of tax | 0 | 6,517 | 0 | 6,517 | 0 | 0 | |||||||
Common stock dividends | 0 | 0 | (1,494) | (1,494) | 0 | 0 | |||||||
Repurchase of common shares | (1,506) | 0 | (4,499) | (6,020) | $ 0 | $ (15) | |||||||
Repurchase of common shares (in shares) | (3,000) | (346,000) | |||||||||||
Restricted stock grants | 522 | 0 | 0 | 524 | $ 0 | $ 2 | |||||||
Restricted stock grants (in shares) | 0 | 29,000 | |||||||||||
Ending balance at Jun. 30, 2019 | 54,065 | 8,217 | 304,513 | 367,416 | $ 112 | $ 509 | |||||||
Ending balance (in shares) at Jun. 30, 2019 | 2,612,000 | 11,932,000 | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Cumulative effect of the adoption of updated accounting guidance for credit losses, net of tax | ASU 2016-13 [Member] | $ 0 | $ 0 | $ (12,281) | $ (12,281) | $ 0 | $ 0 | |||||||
Beginning balance at Dec. 31, 2019 | 53,349 | 9,369 | 300,988 | 364,316 | $ 111 | $ 499 | |||||||
Beginning balance (ASU 2016-13 [Member]) at Dec. 31, 2019 | $ (12,281) | ||||||||||||
Beginning balance (in shares) at Dec. 31, 2019 | 2,603,000 | 11,676,000 | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Net loss (income) | 0 | 0 | (10,789) | (10,789) | $ 0 | $ 0 | |||||||
Foreign currency translation adjustment, net of tax | 0 | (466) | 0 | (466) | 0 | 0 | |||||||
Change in unrealized gain (loss) on investments, net of tax | 0 | (1,010) | 0 | (1,010) | 0 | 0 | |||||||
Common stock dividends | 0 | 0 | (2,858) | (2,858) | 0 | 0 | |||||||
Repurchase of common shares | (563) | 0 | (1,214) | (1,782) | $ 0 | $ (5) | |||||||
Repurchase of common shares (in shares) | 0 | (127,000) | (126,764) | ||||||||||
Restricted stock grants | 906 | 0 | 0 | 908 | $ 0 | $ 2 | |||||||
Restricted stock grants (in shares) | 0 | 61,000 | |||||||||||
Ending balance at Jun. 30, 2020 | 53,692 | 7,893 | 273,846 | 336,038 | $ 111 | $ 496 | |||||||
Ending balance (in shares) at Jun. 30, 2020 | 2,603,000 | 11,610,000 | |||||||||||
Beginning balance at Mar. 31, 2020 | 53,045 | (12,179) | 263,911 | 305,383 | $ 111 | $ 495 | |||||||
Beginning balance (in shares) at Mar. 31, 2020 | 2,603,000 | 11,580,000 | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Net loss (income) | 0 | 0 | 11,367 | 11,367 | $ 0 | $ 0 | |||||||
Foreign currency translation adjustment, net of tax | 0 | 221 | 0 | 221 | 0 | 0 | |||||||
Change in unrealized gain (loss) on investments, net of tax | 0 | 19,851 | 0 | 19,851 | 0 | 0 | |||||||
Common stock dividends | 0 | 0 | (1,432) | (1,432) | 0 | 0 | |||||||
Repurchase of common shares | 0 | 0 | 0 | 0 | $ 0 | $ 0 | |||||||
Repurchase of common shares (in shares) | 0 | 0 | |||||||||||
Restricted stock grants | 647 | 0 | 0 | 648 | $ 0 | $ 1 | |||||||
Restricted stock grants (in shares) | 0 | 30,000 | |||||||||||
Ending balance at Jun. 30, 2020 | $ 53,692 | $ 7,893 | $ 273,846 | $ 336,038 | $ 111 | $ 496 | |||||||
Ending balance (in shares) at Jun. 30, 2020 | 2,603,000 | 11,610,000 |
Unaudited Condensed Consolida_6
Unaudited Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Operating activities | ||
Net income (loss) | $ (10,789) | $ 4,283 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities | 22,467 | 34,113 |
Net cash provided by operating activities | 11,678 | 38,396 |
Investing activities | ||
Purchases of fixed income and equity securities | (164,518) | (245,099) |
Distributions from limited partnerships | 14,636 | 20,231 |
Proceeds from maturities | 60,811 | 38,917 |
Proceeds from sales of fixed income securities | 67,922 | 71,839 |
Proceeds from sales of equity securities | 44,395 | 14,449 |
Purchase of commercial mortgage loans | (410) | (2,213) |
Proceeds from commercial mortgage loans | 121 | 0 |
Purchases of property and equipment | (712) | (1,346) |
Proceeds from disposals of property and equipment | 0 | 3 |
Net cash provided by (used in) investing activities | 22,245 | (103,219) |
Financing activities | ||
Dividends paid to shareholders | (2,858) | (2,987) |
Repurchase of common shares | (1,782) | (6,487) |
Net cash used in financing activities | (4,640) | (9,474) |
Effect of foreign exchange rates on cash and cash equivalents | (466) | 591 |
Increase (decrease) in cash, cash equivalents and restricted cash and cash equivalents | 28,817 | (73,706) |
Cash, cash equivalents and restricted cash and cash equivalents at beginning of period | 88,888 | 170,811 |
Cash, cash equivalents and restricted cash and cash equivalents at end of period | $ 117,705 | $ 97,105 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2020 | |
Summary of Significant Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | (1) Summary of Significant Accounting Policies: Description of Business: The term “Insurance Subsidiaries,” as used throughout this document, refers to Protective Insurance Company, Protective Specialty Insurance Company, Sagamore Insurance Company and B&L Insurance, Ltd. Basis of Presentation: Accounting Policies Investments : Commercial mortgage loans are carried primarily at amortized cost along with an allowance for losses when necessary. These investments represent interests in commercial mortgage loans originated and serviced by a third party of which the Company shares, on a pro-rata basis, in all related cash flows of the underlying mortgage loans. The Company recorded an allowance of $195 on its commercial mortgage loans as of June 30, 2020 in conjunction with the adoption of the new credit losses accounting standard discussed below. The Company accounts for investments in limited partnerships using the equity method of accounting, which requires an investor in a limited partnership to record its proportionate share of the limited partnership's net income. To the extent the limited partnerships include both realized and unrealized investment gains or losses in the determination of net income or loss, then the Company would also recognize, through its condensed consolidated statements of operations, its proportionate share of the investee's unrealized, as well as realized, investment gains or losses within net unrealized gains (losses) on equity securities and limited partnership investments. Short-term and other investments are carried at cost, which approximates their fair values. Fixed income securities are considered to be available-for-sale. The related unrealized net gains or losses (net of applicable tax effects) on fixed income securities are reflected directly in other comprehensive income (loss) within shareholders' equity. Included within available-for-sale fixed income securities are convertible debt securities. A portion of the changes in the fair values of convertible debt securities is reflected as a component of net realized gains (losses) on investments, excluding impairment losses within the condensed consolidated statements of operations. Realized gains and losses on disposals of fixed income securities are recorded on the trade date. Realized gains and losses on fixed income securities are determined by the specific identification of the cost of investments sold and are included in net realized gains (losses) on investments, excluding impairment losses. 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 operations. Realized gains and losses on disposals of equity securities are recorded on the trade date and included in net realized gains (losses) on investments, excluding impairment losses. Recognition of Revenue and Costs: condensed The following accounting policies have been updated effective January 1, 2020 to reflect the Company's adoption of Accounting Standards Update ("ASU") No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, or ASU 2016-13, as described below. Investment Impairments: For a fixed income security 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 the security, the Company separates the credit loss component of the impairment from the amount related to all other factors and reports the credit loss component within net realized gains (losses) on investments, excluding impairment losses in the condensed consolidated statements of operations. The impairment related to all other factors (non-credit factors) is reported in other comprehensive income (loss). The allowance is adjusted for any additional credit losses and subsequent recoveries. Upon recognizing a credit loss, the cost basis is not adjusted. The Company considers the extent to which fair value is below amortized cost in determining whether a credit-related loss exists. The Company also considers the credit quality rating of the security, focusing on those below investment grade, with emphasis on securities downgraded below investment grade. Additionally, the Company may conclude that a qualitative analysis is sufficient to support its conclusion that the present value of the expected cash flows equals or exceeds a security’s amortized cost. The Company reports investment income due and accrued separately from available-for-sale fixed income securities and has elected not to measure an allowance for credit losses for investment income due and accrued. Investment income due and accrued is written off through at the time the issuer defaults or is expected to default on payments. Deductible Receivables : Recently Adopted Accounting Pronouncements: condensed condensed In June 2016, the Financial Accounting Standards Board ("FASB") issued ASU 2016-13. ASU 2016-13 introduced a current expected credit loss ("CECL") model for measuring expected credit losses for certain types of financial instruments held at the reporting date requiring significant judgment in application based on historical experience, current conditions and reasonable supportable forecasts, but is not prescriptive about certain aspects of estimating expected losses. The guidance replaced the current incurred loss model for measuring expected credit losses and provided for additional disclosure requirements. Subsequently, the FASB issued additional ASUs on Topic 326 that did not change the core principle of the guidance in ASU 2016-13, but provided clarification and implementation guidance on certain aspects of ASU 2016-13, and have the same effective date and transition requirements as ASU 2016-13. The Company adopted the guidance recognized a cumulative effect adjustment of $ ($ , net of tax), The updated guidance in ASU 2016-13 also amended the previous other-than-temporary impairment ("OTTI") model for available-for-sale fixed income securities by requiring the recognition of impairments relating to credit losses through an allowance account and limits the amount of credit loss to the difference between a security’s amortized cost basis and its fair value. In addition, the length of time a security has been in an unrealized loss position will no longer impact the determination of whether a credit loss exists. The Company adopted the guidance related to available-for-sale fixed income securities on January 1, 2020 using a prospective transition approach for available-for-sale fixed income securities that were purchased with credit deterioration or had recognized an OTTI write-down prior to the effective date. The effect of the prospective transition approach was to maintain the same amortized cost basis before and after the effective date. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement, or ASU 2018-13. This update removed the disclosure requirements for the amounts of and the reasons for transfers between Level 1 and Level 2 and disclosure of the policy for timing of transfers between levels. This update also removed disclosure requirements for the valuation processes for Level 3 fair value measurements. Additionally, this update added disclosure requirements for the changes in unrealized gains and losses for recurring Level 3 fair value measurements and quantitative information for certain unobservable inputs in Level 3 fair value measurements. The Company adopted ASU 2018-13 as of January 1, 2020. As the requirements of this guidance are applicable to disclosure only, the adoption of ASU 2018-13 had no material impact on the Company's condensed consolidated financial statements. Recently Issued Accounting Pronouncements: In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, or ASU 2019-12. Among other items, the amendments in ASU 2019-12 simplify the accounting treatment of tax law changes and year-to-date losses in interim periods. An entity generally recognizes the effects of a change in tax law in the period of enactment; however, there is an exception for tax laws with delayed effective dates. Under current guidance, an entity may not adjust its annual effective tax rate for a tax law change until the period in which the law is effective. This exception was removed under ASU 2019-12, thereby providing that all effects of a tax law change are recognized in the period of enactment, including adjustment of the estimated annual effective tax rate. Regarding year-to-date losses in interim periods, an entity is required to estimate its annual effective tax rate for the full fiscal year at the end of each interim period and use that rate to calculate its income taxes on a year-to-date basis. However, current guidance provides an exception that when a loss in an interim period exceeds the anticipated loss for the year, the income tax benefit is limited to the amount that would be recognized if the year-to-date loss were the anticipated loss for the full year. ASU 2019-12 removes this exception and provides that in this situation, an entity would compute its income tax benefit at each interim period based on its estimated annual effective tax rate. ASU 2019-12 is effective for fiscal years beginning after December 15, 2020, including interim periods within those annual periods. Early adoption is permitted. |
Investments
Investments | 6 Months Ended |
Jun. 30, 2020 | |
Investments [Abstract] | |
Investments | (2) Investments: The following is a summary of available-for-sale securities at June 30, 2020 and December 31, 2019: Fair Value Cost or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Net Unrealized Gains (Losses) June 30, 2020 Fixed income securities Agency collateralized mortgage obligations $ 11,054 $ 10,869 $ 428 $ (243 ) $ 185 Agency mortgage-backed securities 91,512 88,344 3,192 (24 ) 3,168 Asset-backed securities 99,830 104,961 597 (5,728 ) (5,131 ) Bank loans 8,121 9,609 – (1,488 ) (1,488 ) Certificates of deposit 2,835 2,835 – – – Collateralized mortgage obligations 6,749 7,046 40 (337 ) (297 ) Corporate securities 295,894 284,676 13,318 (2,100 ) 11,218 Mortgage-backed securities 45,502 53,106 478 (8,082 ) (7,604 ) Municipal obligations 38,359 36,967 1,421 (29 ) 1,392 Non-U.S. government obligations 30,210 29,312 900 (2 ) 898 U.S. government obligations 181,935 172,794 9,141 – 9,141 Total fixed income securities $ 812,001 $ 800,519 $ 29,515 $ (18,033 ) $ 11,482 Fair Value Cost or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Net Unrealized Gains (Losses) December 31, 2019 Fixed income securities Agency collateralized mortgage obligations $ 12,093 $ 11,557 $ 536 $ – $ 536 Agency mortgage-backed securities 56,280 54,286 2,005 (11 ) 1,994 Asset-backed securities 106,397 107,028 499 (1,130 ) (631 ) Bank loans 14,568 14,932 106 (470 ) (364 ) Certificates of deposit 2,835 2,835 – – – Collateralized mortgage obligations 5,616 5,123 493 – 493 Corporate securities 281,381 274,340 7,492 (451 ) 7,041 Mortgage-backed securities 47,463 46,685 1,047 (269 ) 778 Municipal obligations 36,286 35,749 684 (147 ) 537 Non-U.S. government obligations 24,179 23,889 290 – 290 U.S. government obligations 208,440 206,623 2,891 (1,074 ) 1,817 Total fixed income securities $ 795,538 $ 783,047 $ 16,043 $ (3,552 ) $ 12,491 The following table summarizes, for available-for-sale fixed income securities in an unrealized loss position at June 30, 2020 and December 31, 2019, the aggregate fair value and gross unrealized loss categorized by the duration individual securities have been continuously in an unrealized loss position. June 30, 2020 December 31, 2019 Number of Securities Fair Value Gross Unrealized Loss Number of Securities Fair Value Gross Unrealized Loss Fixed income securities: 12 months or less 149 $ 130,567 $ (14,097 ) 88 $ 108,387 $ (2,452 ) Greater than 12 months 23 25,739 (3,936 ) 69 66,860 (1,100 ) Total fixed income securities 172 $ 156,306 $ (18,033 ) 157 $ 175,247 $ (3,552 ) The fair value and the cost or amortized costs of fixed income investments at June 30, 2020, organized 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 $ 96,464 $ 95,568 Excess of one year to five years 319,395 306,894 Excess of five years to ten years 132,463 124,972 Excess of ten years 15,781 15,805 Contractual maturities 564,103 543,239 Asset-backed securities 247,898 257,280 Total $ 812,001 $ 800,519 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 operations. Three Months Ended June 30 Six Months Ended June 30 2020 2019 2020 2019 Gross gains on available-for-sale fixed income securities sold during the period $ 2,561 $ 4,132 $ 5,213 $ 7,303 Gross losses on available-for-sale fixed income securities sold during the period (149 ) (3,154 ) (4,890 ) (6,681 ) Impairment losses on investments (418 ) (86 ) (458 ) (346 ) Change in value of limited partnership investments (587 ) 314 (1,263 ) 722 Gains on equity securities: Realized gains (losses) on equity securities sold during the period (6,511 ) (265 ) (9,209 ) 51 Unrealized gains (losses) on equity securities held at the end of the period 15,719 1,948 (6,534 ) 7,867 Realized and unrealized gains (losses) on equity securities during the period 9,208 1,683 (15,743 ) 7,918 Net realized and unrealized gains (losses) on investments $ 10,615 $ 2,889 $ (17,141 ) $ 8,916 As discussed in Note 1, the Company adopted the provisions of the new CECL model for measuring expected credit losses for available-for-sale fixed income securities as of January 1, 2020. The updated guidance amended the previous OTTI model for available-for-sale fixed income securities by requiring the recognition of impairments relating to credit losses through an allowance account on the balance sheet with a corresponding adjustment to earnings and limits the amount of credit loss to the difference between a security’s amortized cost basis and its fair value. For those securities the Company intended to sell as of June 30, 2020, a write down to earnings of $0.4 million and $0.5 million was recorded during the three and six months ended June 30, 2020. The Company reviewed its remaining fixed income securities in an unrealized loss position as of June 30, 2020 and determined that the losses were primarily the result of non-credit factors, such as the increase in market volatility due to the recent disruption in global financial markets as a result of the novel coronavirus COVID-19 pandemic and responses to it. The Company currently does not intend to sell nor does it expect to be required to sell these securities before recovery of their amortized cost. Based on the above factors, the Company did not record any allowance for credit losses related to its available-for-sale fixed income securities under the new guidance in the first six months of 2020. Shareholders' equity at June 30, 2020 included approximately $3,989, net of federal income tax expense, of reported earnings that remain undistributed by limited partnerships. |
Reinsurance
Reinsurance | 6 Months Ended |
Jun. 30, 2020 | |
Reinsurance [Abstract] | |
Reinsurance | (3) Reinsurance: The following table summarizes the Company's transactions with reinsurers for the three and six months ended June 30, 2020 and 2019 comparative periods. 2020 2019 Three months ended June 30: Premiums ceded to reinsurers $ 28,216 $ 32,425 Losses and loss expenses ceded to reinsurers 24,394 28,859 Commissions from reinsurers 7,052 8,176 2020 2019 Six months ended June 30: Premiums ceded to reinsurers $ 56,683 $ 62,598 Losses and loss expenses ceded to reinsurers 47,930 59,648 Commissions from reinsurers 14,580 15,410 |
Loss and Loss Expense Reserves
Loss and Loss Expense Reserves | 6 Months Ended |
Jun. 30, 2020 | |
Loss and Loss Expense Reserves [Abstract] | |
Loss and Loss Expense Reserves | (4) Loss and Loss Expense Reserves: Activity in the reserves for losses and loss expenses for the six months ended June 30, 2020 and 2019 is summarized as follows. All amounts are shown net of reinsurance, unless otherwise indicated. Six Months Ended June 30 2020 2019 Reserves, gross of reinsurance recoverable, at the beginning of the year $ 988,305 $ 865,339 Reinsurance recoverable on unpaid losses at the beginning of the year 398,305 375,935 Reserves at the beginning of the year 590,000 489,404 Provision for losses and loss expenses: Claims occurring during the current period 150,366 179,211 Claims occurring during prior periods (326 ) (1,656 ) Total incurred 150,040 177,555 Loss and loss expense payments: Claims occurring during the current period 26,246 30,573 Claims occurring during prior periods 103,798 92,822 Total paid 130,044 123,395 Reserves at the end of the period 609,996 543,564 Reinsurance recoverable on unpaid losses at the end of the period 405,364 389,899 Reserves, gross of reinsurance recoverable, at the end of the period $ 1,015,360 $ 933,463 The $326 prior accident year favorable development during the six months ended June 30, 2020 was primarily due to favorable loss development in the Company's occupational accident line of business for accident years 2018 and 2019, partially offset by unfavorable loss development in excess automobile liability and public transportation primarily for accident year 2018. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2020 | |
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 commercial automobile companies, as well as to independent contractors who contract with commercial automobile companies. The following table summarizes segment revenues for the three and six months ended June 30, 2020 and 2019: Three Months Ended June 30 Six Months Ended June 30 2020 2019 2020 2019 Revenues: Net premiums earned $ 97,730 $ 115,631 $ 207,389 $ 225,644 Net investment income 6,379 6,500 13,616 12,732 Net realized and unrealized gains (losses) on investments 10,615 2,889 (17,141 ) 8,916 Commissions and other income 1,889 1,978 3,551 4,043 Total revenues $ 116,613 $ 126,998 $ 207,415 $ 251,335 |
Debt
Debt | 6 Months Ended |
Jun. 30, 2020 | |
Debt [Abstract] | |
Debt | (6) Debt: On August 9, 2018, the Company entered into a credit agreement providing a revolving credit facility with a $40,000 limit, with the option for up to an additional $35,000 in incremental loans at the discretion of the lenders. This credit agreement has an expiration date of August 9, 2022. Interest on this revolving credit facility is referenced to the London Interbank Offered Rate and can be fixed for periods of up to one year at the Company's option. Outstanding drawings on this revolving credit facility were $20,000 as of June 30, 2020. At June 30, 2020, the effective interest rate was 1.29%, and the Company had $20,000 remaining available under the revolving credit facility. The current outstanding borrowings were used to repay the Company's previous line of credit. The Company's revolving credit facility has two financial covenants, each of which were met as of June 30, 2020. These covenants require the Company to have a minimum U.S. generally accepted accounting principles net worth and a maximum consolidated debt to equity ratio of 0.35. |
Taxes
Taxes | 6 Months Ended |
Jun. 30, 2020 | |
Taxes [Abstract] | |
Taxes | (7) Taxes: The Company uses the estimated annual effective tax rate method for calculating its tax provision in interim periods, which represents the Company’s best estimate of the effective tax rate expected for the full year based on projected annual taxable income (loss). The effective tax rate can fluctuate throughout the year because estimates used in the quarterly tax provision are updated as more information becomes available throughout the year. The effective federal tax rate on consolidated income for the three months ended June 30, 2020 was 20.0% compared to 21.3% for the three months ended June 30, 2019. The effective federal tax rate on consolidated loss for the six months ended June 30, 2020 was 1.3% compared to 21.6% on consolidated income for the six months ended June 30, 2019. The pre-tax loss for the six months ended June 30, 2020 makes these interim period effective tax rates less comparable year-over-year. The difference in the effective federal income tax rate from the normal statutory rate was primarily related to the recording of a valuation allowance in the current period on our deferred tax assets discussed below, in addition to the effects of tax-exempt investment income and the dividends received deduction. In assessing the valuation of deferred tax assets, the Company considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income or availability to carryback the losses to taxable income during the periods in which those temporary differences become deductible. The Company considered several factors when analyzing the need for a valuation allowance, including the Company's current three year cumulative loss through June 30, 2020, the increase in deferred tax assets due to the adoption of CECL at January 1, 2020 discussed in Note 1, the change in unrealized gains and losses and the loss of a high taxable income year from the carryback period. The three year cumulative loss limits the Company's ability to use projected income beyond 2020 in the analysis. Based on this analysis, the Company concluded that a valuation allowance was necessary for its deferred tax assets not supported by either carryback availability or future reversals of existing taxable temporary differences. The Company's valuation allowance was $ as of , of which $ was recorded in the condensed consolidated statement of operations for the six months ended June 30, 2020 and the balance was recorded in shareholders' equity within accumulated other comprehensive income as of June 30, 2020. This represented a $ reduction to the valuation allowance of $ recorded for the three months ended March 31, 2020. Of this reduction, $ was recorded in the condensed consolidated statement of operations for the three months ended June 30, 2020 and the balance was recorded in shareholders' equity within accumulated other comprehensive income as of June 30, 2020. As of June 30, 2020, the Company's calendar years 2018, 2017 and 2016 r |
Fair Value
Fair Value | 6 Months Ended |
Jun. 30, 2020 | |
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 June 30, 2020: Description Total Level 1 Level 2 Level 3 Fixed income securities: Agency collateralized mortgage obligations $ 11,054 $ – $ 11,054 $ – Agency mortgage-backed securities 91,512 – 91,512 – Asset-backed securities 99,830 – 99,830 – Bank loans 8,121 – 8,121 – Certificates of deposit 2,835 2,835 – – Collateralized mortgage obligations 6,749 – 6,749 – Corporate securities 290,889 – 290,889 – Options embedded in convertible securities 5,005 – 5,005 – Mortgage-backed securities 45,502 – 45,502 – Municipal obligations 38,359 – 38,359 – Non-U.S. government obligations 30,210 – 30,210 – U.S. government obligations 181,935 – 181,935 – Total fixed income securities 812,001 2,835 809,166 – Equity securities: Consumer 10,087 10,087 – – Energy 1,333 1,333 – – Financial 22,468 22,468 – – Industrial 3,483 3,483 – – Technology 2,443 2,443 – – Funds (e.g., mutual funds, closed end funds, ETFs) – – – – Other 6,195 6,195 – – Total equity securities 46,009 46,009 – – Short-term investments 1,000 1,000 – – Cash equivalents 94,039 – 94,039 – Total $ 953,049 $ 49,844 $ 903,205 $ – As of December 31, 2019: Description Total Level 1 Level 2 Level 3 Fixed income securities: Agency collateralized mortgage obligations $ 12,093 $ – $ 12,093 $ – Agency mortgage-backed securities 56,280 – 56,280 – Asset-backed securities 106,397 – 106,397 – Bank loans 14,568 – 14,568 – Certificates of deposit 2,835 2,835 – – Collateralized mortgage obligations 5,616 – 5,616 – Corporate securities 276,087 – 276,087 – Options embedded in convertible securities 5,294 – 5,294 – Mortgage-backed securities 47,463 – 47,463 – Municipal obligations 36,286 – 36,286 – Non-U.S. government obligations 24,179 – 24,179 – U.S. government obligations 208,440 – 208,440 – Total fixed income securities 795,538 2,835 792,703 – Equity securities: Consumer 16,707 16,707 – – Energy 3,074 3,074 – – Financial 31,577 31,577 – – Industrial 4,927 4,927 – – Technology 2,817 2,817 – – Funds (e.g., mutual funds, closed end funds, ETFs) 9,460 9,460 – – Other 8,250 8,250 – – Total equity securities 76,812 76,812 – – Short-term investments 1,000 1,000 – – Cash equivalents 59,780 – 59,780 – Total $ 933,130 $ 80,647 $ 852,483 $ – 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 did not have any Level 3 assets at June 30, 2020 or December 31, 2019. Level 3 assets, when present, are valued using various unobservable inputs, including extrapolated data, proprietary models and indicative quotes. 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 six months ended June 30, 2020. 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; 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. Commercial mortgage loans: Commercial mortgage loans are carried primarily at amortized cost along with a valuation allowance for losses when necessary. These investments represent interests in commercial mortgage loans originated and serviced by a third party of which the Company shares, on a pro-rata basis, in all related cash flows of the underlying mortgage loans. The fair value of the Company’s investment in these commercial mortgage loans is based on expected future cash flows discounted at the current interest rate for origination of similar quality loans, adjusted for specific loan risk. These investments 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 June 30, 2020 and December 31, 2019 is as follows: Carrying Fair Value Value Level 1 Level 2 Level 3 Total June 30, 2020 Assets: Limited partnerships $ 7,393 $ – $ – $ 7,393 $ 7,393 Commercial mortgage loans 11,875 – – 12,514 12,514 Liabilities: Short-term borrowings 20,000 – 20,000 – 20,000 December 31, 2019 Assets: Limited partnerships $ 23,292 $ – $ – $ 23,292 $ 23,292 Commercial mortgage loans 11,782 – – 12,068 12,068 Liabilities: Short-term borrowings 20,000 – 20,000 – 20,000 |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2020 | |
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 as part of their annual retainer compensation. The shares are distributed to the outside directors on the vesting date, which, with the exception of pro-rated annual retainers granted to outside directors, is one year following the date of grant. On May 17, 2019, 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 vested and were distributed on May 7, 2020. Additionally, effective May 22, 2019, John D. Nichols, Jr. ceased serving as the Company's Interim Chief Executive Officer and principal executive officer, but continued to serve as Chairman of the Company's Board of Directors. On May 22, 2019, the Company granted shares of restricted Class B Common Stock to Mr. Nichols in connection with this transition, Grant Date Number of Shares Issued Vesting Date Service Period Grant Date Fair Value Per Share 5/8/2018 19,085 5/8/2019 7/1/2018 - 6/30/2019 $ 23.05 5/7/2019 29,536 5/7/2020 7/1/2019 - 6/30/2020 $ 16.25 5/17/2019 3,591 5/7/2020 7/1/2019 - 6/30/2020 $ 16.25 5/22/2019 3,541 5/7/2020 7/1/2019 - 6/30/2020 $ 16.25 5/5/2020 42,220 5/5/2021 7/1/2020 - 6/30/2021 $ 14.21 Compensation expense related to the above stock grants is recognized over the period in which the directors render services. In March 2018, the Company's Compensation Committee granted equity-based awards pursuant to the 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 awards 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. 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. 2018 LTIP Awards were earned based on the Company's performance in 2018, and therefore no shares were issued pursuant to the 2018 LTIP Awards. I On November 13, 2018, the Company entered into an employment agreement with its Interim Chief Executive Officer, John D. Nichols, Jr. Pursuant to the terms of this employment agreement, on November 13, 2018, Mr. Nichols was granted 85,000 restricted shares of the Company's Class B Common Stock (the "Nichols Stock Grant"), of which 42,500 shares vested as of October 17, 2019; 21,250 shares will vest as of October 17, 2020, and 21,250 shares will vest as of October 17, 2021. The Company incurred $128 of expense during the six months ended June 30, 2020 related to the Nichols Stock Grant. In March 2019, the Company's Compensation Committee granted equity-based awards pursuant to the Long-Term Incentive Plan. Certain participants under the Long-Term Incentive Plan were granted equity awards (the "2019 LTIP Awards"), with the number of shares of Class B Common Stock earned pursuant to such awards determined by applying a performance matrix consisting of a corporate performance component as well as a personal performance component. The corporate performance component of the 2019 LTIP Awards was determined based on the Company's achievement of 2019 underwriting income compared to the plan target. The Company's underwriting income was calculated as income (loss) before federal income tax expense (benefit), less net realized and unrealized gains (losses) on investments, less net investment income. The personal performance component of the 2019 LTIP Awards was determined based on the achievement of personal goals that align with departmental and corporate objectives for 2019. 2019 LTIP Awards earned were paid in shares of restricted Class B Common Stock in early 2020. One-third of such shares will vest annually over the period beginning one year from the date of issue. The Company incurred $ of expense during the six months ended related to the 2019 LTIP Awards. On May 22, 2019, the Company entered into an employment agreement with its new Chief Executive Officer, Jeremy D. Edgecliffe-Johnson. Pursuant to the terms of this employment agreement, on May 22, 2019, Mr. Edgecliffe-Johnson was granted 70,000 restricted shares of the Company's Class B Common Stock (the "Edgecliffe-Johnson Stock Grant"), of which 35,000 shares will vest as of June 1, 2022, 21,000 shares will vest as of June 1, 2023, and 14,000 shares will vest as of June 1, 2024. The Company incurred $135 of expense during the six months ended June 30, 2020 related to the Edgecliffe-Johnson Stock Grant. On November 5, 2019, the Board of the Company, upon the recommendation of the Compensation Committee, approved equity compensation awards to be granted to seven members of senior management as of November 12, 2019 under the Company’s Long-Term Incentive Plan. The Board approved a total of $1,100 in grants of restricted shares of the Company’s Class B Common Stock, which will vest on January 1, 2023, subject to the recipient’s continued employment with the Company through the vesting date. The Company incurred $176 of expense during the six months ended June 30, 2020 related to this grant. |
Litigation, Commitments and Con
Litigation, Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2020 | |
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, other than as noted below. Personnel Staffing Group Litigation In July 2019, Protective Insurance Company (“Protective”) was named as a defendant in an action brought by a former insured, Personnel Staffing Group d/b/a MVP Staffing (“PSG”), in the U.S. District Court for the Central District of California (the “California Action”) alleging that Protective had breached its workers’ compensation insurance policy and had breached the duties of good faith and fair dealing. Protective provided workers’ compensation insurance to PSG from January 1, 2017 through June 30, 2018, which was subject to a $500 per claim deductible to be paid by PSG. No specific damages were included in the complaint. In August 2019, Protective filed a motion to dismiss or stay the action. In August 2019, Protective filed a lawsuit against PSG in Marion County Superior Court, in Indianapolis, Indiana (the “Indiana Court”) alleging breach of contract, breach of the parties' collateral agreement, breach of the parties' indemnity agreement, and seeking a declaratory judgment regarding PSG’s obligation to fund its ongoing claim deductible obligations and adequately collateralize Protective’s current and ongoing claims exposure pursuant to terms of the parties' agreements (the “Indiana Action”). In October 2019, Protective amended the complaint to include allegations of misrepresentation as to source of coverage, negligent misrepresentation, fraud and racketeering and seeking injunctive relief. In November 2019, PSG filed a motion to dismiss the Indiana Action on the basis of comity with the California Action, claiming that California was the proper forum for Protective’s claims. In February 2020, the Indiana Court issued an order dismissing the Indiana Action without prejudice; the Indiana Court declined to rule on the legal effect of the forum selection clause in the parties’ agreements, finding that any interpretation should be addressed by the court in the California Action. On April 28, 2020, Protective’s motion to dismiss the California Action was granted without prejudice on grounds that Indiana is the more appropriate forum. On May 4, 2020, PSG filed a notice of appeal of the order of dismissal in the California Action. On May 1, 2020, Protective filed a motion with the Indiana Court to re-open the Indiana Action, which remains pending. Protective intends to vigorously pursue its claims against PSG, however, the ultimate outcome cannot be presently determined. Pursuant to the terms of the workers’ compensation policies, Protective has a duty to adjust and pay claims arising under the policies regardless of whether PSG makes payments to Protective for deductible obligations under the policies. Under its contractual obligations to Protective, PSG is required to maintain a “loss fund” for the payment of claims, the balance of which is to remain at or above $4,000; in addition, PSG is required to provide collateral in an amount equal to 110% of Protective’s current open case reserves on workers’ compensation claims arising under the policies. As of June 30, 2020, Protective had approximately $17,338 in deductible receivables on claims arising under PSG’s workers’ compensation policies and had exhausted all collateral provided by PSG. Protective continues to pay claims settlements under the policies without reimbursement from PSG. For the past six months, the average monthly deductible invoices have been approximately $1,085. PSG’s estimated ultimate obligation under the agreements is approximately $46,730 as of June 30, 2020 (inclusive of the $17,338 in deductible receivables noted above). At June 30, 2020, based on the Company's assessment that PSG will continue to operate as a business and that the terms of the agreement with PSG will be legally enforceable, the Company believes that it will fully collect all current and future amounts due from PSG relating to this matter. The Company included this matter in its assessment of the impact of adopting ASU 2016-13, the new guidance for measuring CECL, which is discussed in Note 1. A probability-of-default methodology was applied to projected estimated cash flows to estimate the allowance for expected credit losses for this matter. The Company considered the delay in reimbursement for claims paid as well as probability of default assumptions when analyzing the credit loss related to this matter. As of January 1, 2020, in conjunction with the adoption of ASU 2016-13, the Company recorded an allowance for expected credit losses of $ ($ , net of tax) as a reduction to equity. In the event of a PSG bankruptcy with no recovery, the Company would incur a charge to the condensed consolidated statement of operations of $ ($ , net of tax), which represents the estimated ultimate obligation discussed above less the CECL allowance. There was no change to the allowance during the first six months of 2020, as the ultimate obligation and projected cash flows had not materially changed since January 1, 2020 when the initial measurement of the credit risk was conducted. |
Shareholders' Equity
Shareholders' Equity | 6 Months Ended |
Jun. 30, 2020 | |
Shareholders' Equity [Abstract] | |
Shareholders' Equity | (11) Shareholders' Equity: On August 31, 2017, the Company's Board of Directors authorized the reinstatement of its share repurchase program for up to 2,464,209 shares of the Company's Class A or Class B Common Stock. On August 6, 2019, the Company's Board of Directors reaffirmed its share repurchase program, but also provided that the aggregate dollar amount of shares of the Company's common stock that may be repurchased under the share repurchase program between August 6, 2019 and August 6, 2020 may not exceed $25,000, including a limit of up to $6,250 per quarter. No duration has been placed on the Company's share repurchase program, and the Company reserves the right to amend, suspend or discontinue it at any time. The share repurchase program does not commit the Company to repurchase any shares of its common stock. During the six months ended June 30, 2020, the Company paid $1,782 to repurchase 126,764 shares of Class B Common Stock under the share repurchase program. The following table illustrates changes in accumulated other comprehensive income (loss) by component for the six months ended June 30, 2020: Foreign Currency Unrealized Holding Gains (Losses) on Available-for-sale Securities Total Beginning balance at December 31, 2019 $ (494 ) $ 9,863 $ 9,369 Other comprehensive income (loss) before reclassifications (466 ) (853 ) (1,319 ) Amounts reclassified from accumulated other comprehensive income (loss) – (157 ) (157 ) Net current-period other comprehensive income (loss) (466 ) (1,010 ) (1,476 ) Ending balance at June 30, 2020 $ (960 ) $ 8,853 $ 7,893 The following table illustrates changes in accumulated other comprehensive income (loss) by component for the six months ended June 30, 2019: Foreign Currency Unrealized Holding Gains (Losses) on Available-for-sale Securities Total Beginning balance at December 31, 2018 $ (1,139 ) $ (6,208 ) $ (7,347 ) Other comprehensive income (loss) before reclassifications 591 14,758 15,349 Amounts reclassified from accumulated other comprehensive income (loss) – 215 215 Net current-period other comprehensive income (loss) 591 14,973 15,564 Ending balance at June 30, 2019 $ (548 ) $ 8,765 $ 8,217 |
Related Parties
Related Parties | 6 Months Ended |
Jun. 30, 2020 | |
Related Parties [Abstract] | |
Related Parties | (12) Related Parties: The Company utilizes the services of an investment firm of which one director of the Company is a partial owner. This investment firm manages equity securities and fixed income portfolios held by the Company with an aggregate market value of approximately $6,946 at June 30, 2020. Total commissions and net fees earned by this investment firm and its affiliates on these portfolios were $67 and $71 for the six months ended June 30, 2020 and 2019. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | ( 13) Subsequent Events: On August 4, 2020, the Company's Board of Directors declared a regular quarterly dividend of $0.10 per share on the Company's Class A and Class B Common Stock. The dividend per share will be payable September 1, 2020 to shareholders of record on August 18, 2020. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2020 | |
Summary of Significant Accounting Policies [Abstract] | |
Description of Business | Description of Business: The term “Insurance Subsidiaries,” as used throughout this document, refers to Protective Insurance Company, Protective Specialty Insurance Company, Sagamore Insurance Company and B&L Insurance, Ltd. |
Basis of Presentation | Basis of Presentation: |
Investments | Investments : Commercial mortgage loans are carried primarily at amortized cost along with an allowance for losses when necessary. These investments represent interests in commercial mortgage loans originated and serviced by a third party of which the Company shares, on a pro-rata basis, in all related cash flows of the underlying mortgage loans. The Company recorded an allowance of $195 on its commercial mortgage loans as of June 30, 2020 in conjunction with the adoption of the new credit losses accounting standard discussed below. The Company accounts for investments in limited partnerships using the equity method of accounting, which requires an investor in a limited partnership to record its proportionate share of the limited partnership's net income. To the extent the limited partnerships include both realized and unrealized investment gains or losses in the determination of net income or loss, then the Company would also recognize, through its condensed consolidated statements of operations, its proportionate share of the investee's unrealized, as well as realized, investment gains or losses within net unrealized gains (losses) on equity securities and limited partnership investments. Short-term and other investments are carried at cost, which approximates their fair values. Fixed income securities are considered to be available-for-sale. The related unrealized net gains or losses (net of applicable tax effects) on fixed income securities are reflected directly in other comprehensive income (loss) within shareholders' equity. Included within available-for-sale fixed income securities are convertible debt securities. A portion of the changes in the fair values of convertible debt securities is reflected as a component of net realized gains (losses) on investments, excluding impairment losses within the condensed consolidated statements of operations. Realized gains and losses on disposals of fixed income securities are recorded on the trade date. Realized gains and losses on fixed income securities are determined by the specific identification of the cost of investments sold and are included in net realized gains (losses) on investments, excluding impairment losses. |
Recognition of Revenue and Costs | Recognition of Revenue and Costs: condensed The following accounting policies have been updated effective January 1, 2020 to reflect the Company's adoption of Accounting Standards Update ("ASU") No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, or ASU 2016-13, as described below. |
Investment Impairments | Investment Impairments: For a fixed income security 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 the security, the Company separates the credit loss component of the impairment from the amount related to all other factors and reports the credit loss component within net realized gains (losses) on investments, excluding impairment losses in the condensed consolidated statements of operations. The impairment related to all other factors (non-credit factors) is reported in other comprehensive income (loss). The allowance is adjusted for any additional credit losses and subsequent recoveries. Upon recognizing a credit loss, the cost basis is not adjusted. The Company considers the extent to which fair value is below amortized cost in determining whether a credit-related loss exists. The Company also considers the credit quality rating of the security, focusing on those below investment grade, with emphasis on securities downgraded below investment grade. Additionally, the Company may conclude that a qualitative analysis is sufficient to support its conclusion that the present value of the expected cash flows equals or exceeds a security’s amortized cost. The Company reports investment income due and accrued separately from available-for-sale fixed income securities and has elected not to measure an allowance for credit losses for investment income due and accrued. Investment income due and accrued is written off through at the time the issuer defaults or is expected to default on payments. |
Deductible Receivables | Deductible Receivables : |
Recently Adopted and Recently Issued Accounting Pronouncements | Recently Adopted Accounting Pronouncements: condensed condensed In June 2016, the Financial Accounting Standards Board ("FASB") issued ASU 2016-13. ASU 2016-13 introduced a current expected credit loss ("CECL") model for measuring expected credit losses for certain types of financial instruments held at the reporting date requiring significant judgment in application based on historical experience, current conditions and reasonable supportable forecasts, but is not prescriptive about certain aspects of estimating expected losses. The guidance replaced the current incurred loss model for measuring expected credit losses and provided for additional disclosure requirements. Subsequently, the FASB issued additional ASUs on Topic 326 that did not change the core principle of the guidance in ASU 2016-13, but provided clarification and implementation guidance on certain aspects of ASU 2016-13, and have the same effective date and transition requirements as ASU 2016-13. The Company adopted the guidance recognized a cumulative effect adjustment of $ ($ , net of tax), The updated guidance in ASU 2016-13 also amended the previous other-than-temporary impairment ("OTTI") model for available-for-sale fixed income securities by requiring the recognition of impairments relating to credit losses through an allowance account and limits the amount of credit loss to the difference between a security’s amortized cost basis and its fair value. In addition, the length of time a security has been in an unrealized loss position will no longer impact the determination of whether a credit loss exists. The Company adopted the guidance related to available-for-sale fixed income securities on January 1, 2020 using a prospective transition approach for available-for-sale fixed income securities that were purchased with credit deterioration or had recognized an OTTI write-down prior to the effective date. The effect of the prospective transition approach was to maintain the same amortized cost basis before and after the effective date. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement, or ASU 2018-13. This update removed the disclosure requirements for the amounts of and the reasons for transfers between Level 1 and Level 2 and disclosure of the policy for timing of transfers between levels. This update also removed disclosure requirements for the valuation processes for Level 3 fair value measurements. Additionally, this update added disclosure requirements for the changes in unrealized gains and losses for recurring Level 3 fair value measurements and quantitative information for certain unobservable inputs in Level 3 fair value measurements. The Company adopted ASU 2018-13 as of January 1, 2020. As the requirements of this guidance are applicable to disclosure only, the adoption of ASU 2018-13 had no material impact on the Company's condensed consolidated financial statements. Recently Issued Accounting Pronouncements: In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, or ASU 2019-12. Among other items, the amendments in ASU 2019-12 simplify the accounting treatment of tax law changes and year-to-date losses in interim periods. An entity generally recognizes the effects of a change in tax law in the period of enactment; however, there is an exception for tax laws with delayed effective dates. Under current guidance, an entity may not adjust its annual effective tax rate for a tax law change until the period in which the law is effective. This exception was removed under ASU 2019-12, thereby providing that all effects of a tax law change are recognized in the period of enactment, including adjustment of the estimated annual effective tax rate. Regarding year-to-date losses in interim periods, an entity is required to estimate its annual effective tax rate for the full fiscal year at the end of each interim period and use that rate to calculate its income taxes on a year-to-date basis. However, current guidance provides an exception that when a loss in an interim period exceeds the anticipated loss for the year, the income tax benefit is limited to the amount that would be recognized if the year-to-date loss were the anticipated loss for the full year. ASU 2019-12 removes this exception and provides that in this situation, an entity would compute its income tax benefit at each interim period based on its estimated annual effective tax rate. ASU 2019-12 is effective for fiscal years beginning after December 15, 2020, including interim periods within those annual periods. Early adoption is permitted. |
Investments (Tables)
Investments (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Investments [Abstract] | |
Available-for-Sale Securities | The following is a summary of available-for-sale securities at June 30, 2020 and December 31, 2019: Fair Value Cost or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Net Unrealized Gains (Losses) June 30, 2020 Fixed income securities Agency collateralized mortgage obligations $ 11,054 $ 10,869 $ 428 $ (243 ) $ 185 Agency mortgage-backed securities 91,512 88,344 3,192 (24 ) 3,168 Asset-backed securities 99,830 104,961 597 (5,728 ) (5,131 ) Bank loans 8,121 9,609 – (1,488 ) (1,488 ) Certificates of deposit 2,835 2,835 – – – Collateralized mortgage obligations 6,749 7,046 40 (337 ) (297 ) Corporate securities 295,894 284,676 13,318 (2,100 ) 11,218 Mortgage-backed securities 45,502 53,106 478 (8,082 ) (7,604 ) Municipal obligations 38,359 36,967 1,421 (29 ) 1,392 Non-U.S. government obligations 30,210 29,312 900 (2 ) 898 U.S. government obligations 181,935 172,794 9,141 – 9,141 Total fixed income securities $ 812,001 $ 800,519 $ 29,515 $ (18,033 ) $ 11,482 Fair Value Cost or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Net Unrealized Gains (Losses) December 31, 2019 Fixed income securities Agency collateralized mortgage obligations $ 12,093 $ 11,557 $ 536 $ – $ 536 Agency mortgage-backed securities 56,280 54,286 2,005 (11 ) 1,994 Asset-backed securities 106,397 107,028 499 (1,130 ) (631 ) Bank loans 14,568 14,932 106 (470 ) (364 ) Certificates of deposit 2,835 2,835 – – – Collateralized mortgage obligations 5,616 5,123 493 – 493 Corporate securities 281,381 274,340 7,492 (451 ) 7,041 Mortgage-backed securities 47,463 46,685 1,047 (269 ) 778 Municipal obligations 36,286 35,749 684 (147 ) 537 Non-U.S. government obligations 24,179 23,889 290 – 290 U.S. government obligations 208,440 206,623 2,891 (1,074 ) 1,817 Total fixed income securities $ 795,538 $ 783,047 $ 16,043 $ (3,552 ) $ 12,491 |
Fixed Maturity and Equity Security Investments in Unrealized Loss Position | The following table summarizes, for available-for-sale fixed income securities in an unrealized loss position at June 30, 2020 and December 31, 2019, the aggregate fair value and gross unrealized loss categorized by the duration individual securities have been continuously in an unrealized loss position. June 30, 2020 December 31, 2019 Number of Securities Fair Value Gross Unrealized Loss Number of Securities Fair Value Gross Unrealized Loss Fixed income securities: 12 months or less 149 $ 130,567 $ (14,097 ) 88 $ 108,387 $ (2,452 ) Greater than 12 months 23 25,739 (3,936 ) 69 66,860 (1,100 ) Total fixed income securities 172 $ 156,306 $ (18,033 ) 157 $ 175,247 $ (3,552 ) |
Fair Value and Cost or Amortized Cost of Fixed Maturity Investments by Contractual Maturity | The fair value and the cost or amortized costs of fixed income investments at June 30, 2020, organized 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 $ 96,464 $ 95,568 Excess of one year to five years 319,395 306,894 Excess of five years to ten years 132,463 124,972 Excess of ten years 15,781 15,805 Contractual maturities 564,103 543,239 Asset-backed securities 247,898 257,280 Total $ 812,001 $ 800,519 |
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 operations. Three Months Ended June 30 Six Months Ended June 30 2020 2019 2020 2019 Gross gains on available-for-sale fixed income securities sold during the period $ 2,561 $ 4,132 $ 5,213 $ 7,303 Gross losses on available-for-sale fixed income securities sold during the period (149 ) (3,154 ) (4,890 ) (6,681 ) Impairment losses on investments (418 ) (86 ) (458 ) (346 ) Change in value of limited partnership investments (587 ) 314 (1,263 ) 722 Gains on equity securities: Realized gains (losses) on equity securities sold during the period (6,511 ) (265 ) (9,209 ) 51 Unrealized gains (losses) on equity securities held at the end of the period 15,719 1,948 (6,534 ) 7,867 Realized and unrealized gains (losses) on equity securities during the period 9,208 1,683 (15,743 ) 7,918 Net realized and unrealized gains (losses) on investments $ 10,615 $ 2,889 $ (17,141 ) $ 8,916 |
Reinsurance (Tables)
Reinsurance (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Reinsurance [Abstract] | |
Reinsurance | The following table summarizes the Company's transactions with reinsurers for the three and six months ended June 30, 2020 and 2019 comparative periods. 2020 2019 Three months ended June 30: Premiums ceded to reinsurers $ 28,216 $ 32,425 Losses and loss expenses ceded to reinsurers 24,394 28,859 Commissions from reinsurers 7,052 8,176 2020 2019 Six months ended June 30: Premiums ceded to reinsurers $ 56,683 $ 62,598 Losses and loss expenses ceded to reinsurers 47,930 59,648 Commissions from reinsurers 14,580 15,410 |
Loss and Loss Expense Reserves
Loss and Loss Expense Reserves (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Loss and Loss Expense Reserves [Abstract] | |
Activity in Reserves for Losses and Loss Expenses | Activity in the reserves for losses and loss expenses for the six months ended June 30, 2020 and 2019 is summarized as follows. All amounts are shown net of reinsurance, unless otherwise indicated. Six Months Ended June 30 2020 2019 Reserves, gross of reinsurance recoverable, at the beginning of the year $ 988,305 $ 865,339 Reinsurance recoverable on unpaid losses at the beginning of the year 398,305 375,935 Reserves at the beginning of the year 590,000 489,404 Provision for losses and loss expenses: Claims occurring during the current period 150,366 179,211 Claims occurring during prior periods (326 ) (1,656 ) Total incurred 150,040 177,555 Loss and loss expense payments: Claims occurring during the current period 26,246 30,573 Claims occurring during prior periods 103,798 92,822 Total paid 130,044 123,395 Reserves at the end of the period 609,996 543,564 Reinsurance recoverable on unpaid losses at the end of the period 405,364 389,899 Reserves, gross of reinsurance recoverable, at the end of the period $ 1,015,360 $ 933,463 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Segment Information [Abstract] | |
Segment Revenues | The following table summarizes segment revenues for the three and six months ended June 30, 2020 and 2019: Three Months Ended June 30 Six Months Ended June 30 2020 2019 2020 2019 Revenues: Net premiums earned $ 97,730 $ 115,631 $ 207,389 $ 225,644 Net investment income 6,379 6,500 13,616 12,732 Net realized and unrealized gains (losses) on investments 10,615 2,889 (17,141 ) 8,916 Commissions and other income 1,889 1,978 3,551 4,043 Total revenues $ 116,613 $ 126,998 $ 207,415 $ 251,335 |
Fair Value (Tables)
Fair Value (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Fair Value [Abstract] | |
Fair Value Measurements by Level for Assets Measured at Fair Value on Recurring Basis | 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 June 30, 2020: Description Total Level 1 Level 2 Level 3 Fixed income securities: Agency collateralized mortgage obligations $ 11,054 $ – $ 11,054 $ – Agency mortgage-backed securities 91,512 – 91,512 – Asset-backed securities 99,830 – 99,830 – Bank loans 8,121 – 8,121 – Certificates of deposit 2,835 2,835 – – Collateralized mortgage obligations 6,749 – 6,749 – Corporate securities 290,889 – 290,889 – Options embedded in convertible securities 5,005 – 5,005 – Mortgage-backed securities 45,502 – 45,502 – Municipal obligations 38,359 – 38,359 – Non-U.S. government obligations 30,210 – 30,210 – U.S. government obligations 181,935 – 181,935 – Total fixed income securities 812,001 2,835 809,166 – Equity securities: Consumer 10,087 10,087 – – Energy 1,333 1,333 – – Financial 22,468 22,468 – – Industrial 3,483 3,483 – – Technology 2,443 2,443 – – Funds (e.g., mutual funds, closed end funds, ETFs) – – – – Other 6,195 6,195 – – Total equity securities 46,009 46,009 – – Short-term investments 1,000 1,000 – – Cash equivalents 94,039 – 94,039 – Total $ 953,049 $ 49,844 $ 903,205 $ – As of December 31, 2019: Description Total Level 1 Level 2 Level 3 Fixed income securities: Agency collateralized mortgage obligations $ 12,093 $ – $ 12,093 $ – Agency mortgage-backed securities 56,280 – 56,280 – Asset-backed securities 106,397 – 106,397 – Bank loans 14,568 – 14,568 – Certificates of deposit 2,835 2,835 – – Collateralized mortgage obligations 5,616 – 5,616 – Corporate securities 276,087 – 276,087 – Options embedded in convertible securities 5,294 – 5,294 – Mortgage-backed securities 47,463 – 47,463 – Municipal obligations 36,286 – 36,286 – Non-U.S. government obligations 24,179 – 24,179 – U.S. government obligations 208,440 – 208,440 – Total fixed income securities 795,538 2,835 792,703 – Equity securities: Consumer 16,707 16,707 – – Energy 3,074 3,074 – – Financial 31,577 31,577 – – Industrial 4,927 4,927 – – Technology 2,817 2,817 – – Funds (e.g., mutual funds, closed end funds, ETFs) 9,460 9,460 – – Other 8,250 8,250 – – Total equity securities 76,812 76,812 – – Short-term investments 1,000 1,000 – – Cash equivalents 59,780 – 59,780 – Total $ 933,130 $ 80,647 $ 852,483 $ – |
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 June 30, 2020 and December 31, 2019 is as follows: Carrying Fair Value Value Level 1 Level 2 Level 3 Total June 30, 2020 Assets: Limited partnerships $ 7,393 $ – $ – $ 7,393 $ 7,393 Commercial mortgage loans 11,875 – – 12,514 12,514 Liabilities: Short-term borrowings 20,000 – 20,000 – 20,000 December 31, 2019 Assets: Limited partnerships $ 23,292 $ – $ – $ 23,292 $ 23,292 Commercial mortgage loans 11,782 – – 12,068 12,068 Liabilities: Short-term borrowings 20,000 – 20,000 – 20,000 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Stock-Based Compensation [Abstract] | |
Detail of Restricted Stock Issuances | The Company issues shares of restricted Class B Common Stock to the Company's outside directors as part of their annual retainer compensation. The shares are distributed to the outside directors on the vesting date, which, with the exception of pro-rated annual retainers granted to outside directors, is one year following the date of grant. On May 17, 2019, 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 vested and were distributed on May 7, 2020. Additionally, effective May 22, 2019, John D. Nichols, Jr. ceased serving as the Company's Interim Chief Executive Officer and principal executive officer, but continued to serve as Chairman of the Company's Board of Directors. On May 22, 2019, the Company granted shares of restricted Class B Common Stock to Mr. Nichols in connection with this transition, Grant Date Number of Shares Issued Vesting Date Service Period Grant Date Fair Value Per Share 5/8/2018 19,085 5/8/2019 7/1/2018 - 6/30/2019 $ 23.05 5/7/2019 29,536 5/7/2020 7/1/2019 - 6/30/2020 $ 16.25 5/17/2019 3,591 5/7/2020 7/1/2019 - 6/30/2020 $ 16.25 5/22/2019 3,541 5/7/2020 7/1/2019 - 6/30/2020 $ 16.25 5/5/2020 42,220 5/5/2021 7/1/2020 - 6/30/2021 $ 14.21 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Shareholders' Equity [Abstract] | |
Changes in Accumulated Other Comprehensive Income (Loss) by Component | The following table illustrates changes in accumulated other comprehensive income (loss) by component for the six months ended June 30, 2020: Foreign Currency Unrealized Holding Gains (Losses) on Available-for-sale Securities Total Beginning balance at December 31, 2019 $ (494 ) $ 9,863 $ 9,369 Other comprehensive income (loss) before reclassifications (466 ) (853 ) (1,319 ) Amounts reclassified from accumulated other comprehensive income (loss) – (157 ) (157 ) Net current-period other comprehensive income (loss) (466 ) (1,010 ) (1,476 ) Ending balance at June 30, 2020 $ (960 ) $ 8,853 $ 7,893 The following table illustrates changes in accumulated other comprehensive income (loss) by component for the six months ended June 30, 2019: Foreign Currency Unrealized Holding Gains (Losses) on Available-for-sale Securities Total Beginning balance at December 31, 2018 $ (1,139 ) $ (6,208 ) $ (7,347 ) Other comprehensive income (loss) before reclassifications 591 14,758 15,349 Amounts reclassified from accumulated other comprehensive income (loss) – 215 215 Net current-period other comprehensive income (loss) 591 14,973 15,564 Ending balance at June 30, 2019 $ (548 ) $ 8,765 $ 8,217 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) $ in Thousands | 6 Months Ended | |||||
Jun. 30, 2020USD ($)Segment | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Description of Business [Abstract] | ||||||
Number of reportable segments | Segment | 1 | |||||
Recently Adopted Accounting Pronouncements [Abstract] | ||||||
Cumulative effect adjustment to opening balance of retained earnings, net of tax | $ (336,038) | $ (305,383) | $ (364,316) | $ (367,416) | $ (366,070) | $ (356,082) |
ASU 2016-02 [Member] | ||||||
Recently Adopted Accounting Pronouncements [Abstract] | ||||||
Right-of-use asset | 65 | |||||
Lease liability | 65 | |||||
ASU 2016-13 [Member] | ||||||
Deductible Receivables [Abstract] | ||||||
Allowance for credit losses, before tax | 15,000 | |||||
Allowance for credit losses, net of tax | 11,850 | |||||
Commercial Mortgage Loans [Member] | ||||||
Investments [Abstract] | ||||||
Allowance for credit loss | 195 | |||||
Retained Earnings [Member] | ||||||
Recently Adopted Accounting Pronouncements [Abstract] | ||||||
Cumulative effect adjustment to opening balance of retained earnings, net of tax | $ (273,846) | $ (263,911) | (300,988) | $ (304,513) | $ (308,971) | $ (308,075) |
Retained Earnings [Member] | ASU 2016-13 [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | ||||||
Recently Adopted Accounting Pronouncements [Abstract] | ||||||
Cumulative effect adjustment to opening balance of retained earnings, before tax | 15,545 | |||||
Cumulative effect adjustment to opening balance of retained earnings, net of tax | $ 12,281 |
Investments, Summary of Availab
Investments, Summary of Available-for-sale Securities (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Available-for-sale Debt Securities [Abstract] | ||
Fair value | $ 812,001 | $ 795,538 |
Cost or amortized cost | 800,519 | 783,047 |
Gross unrealized gains | 29,515 | 16,043 |
Gross unrealized losses | (18,033) | (3,552) |
Net unrealized gains (losses) | 11,482 | 12,491 |
Agency Collateralized Mortgage Obligations [Member] | ||
Available-for-sale Debt Securities [Abstract] | ||
Fair value | 11,054 | 12,093 |
Cost or amortized cost | 10,869 | 11,557 |
Gross unrealized gains | 428 | 536 |
Gross unrealized losses | (243) | 0 |
Net unrealized gains (losses) | 185 | 536 |
Agency Mortgage-backed Securities [Member] | ||
Available-for-sale Debt Securities [Abstract] | ||
Fair value | 91,512 | 56,280 |
Cost or amortized cost | 88,344 | 54,286 |
Gross unrealized gains | 3,192 | 2,005 |
Gross unrealized losses | (24) | (11) |
Net unrealized gains (losses) | 3,168 | 1,994 |
Asset-backed Securities [Member] | ||
Available-for-sale Debt Securities [Abstract] | ||
Fair value | 99,830 | 106,397 |
Cost or amortized cost | 104,961 | 107,028 |
Gross unrealized gains | 597 | 499 |
Gross unrealized losses | (5,728) | (1,130) |
Net unrealized gains (losses) | (5,131) | (631) |
Bank Loans [Member] | ||
Available-for-sale Debt Securities [Abstract] | ||
Fair value | 8,121 | 14,568 |
Cost or amortized cost | 9,609 | 14,932 |
Gross unrealized gains | 0 | 106 |
Gross unrealized losses | (1,488) | (470) |
Net unrealized gains (losses) | (1,488) | (364) |
Certificates of Deposit [Member] | ||
Available-for-sale Debt Securities [Abstract] | ||
Fair value | 2,835 | 2,835 |
Cost or amortized cost | 2,835 | 2,835 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | 0 | 0 |
Net unrealized gains (losses) | 0 | 0 |
Collateralized Mortgage Obligations [Member] | ||
Available-for-sale Debt Securities [Abstract] | ||
Fair value | 6,749 | 5,616 |
Cost or amortized cost | 7,046 | 5,123 |
Gross unrealized gains | 40 | 493 |
Gross unrealized losses | (337) | 0 |
Net unrealized gains (losses) | (297) | 493 |
Corporate Securities [Member] | ||
Available-for-sale Debt Securities [Abstract] | ||
Fair value | 295,894 | 281,381 |
Cost or amortized cost | 284,676 | 274,340 |
Gross unrealized gains | 13,318 | 7,492 |
Gross unrealized losses | (2,100) | (451) |
Net unrealized gains (losses) | 11,218 | 7,041 |
Mortgage-backed Securities [Member] | ||
Available-for-sale Debt Securities [Abstract] | ||
Fair value | 45,502 | 47,463 |
Cost or amortized cost | 53,106 | 46,685 |
Gross unrealized gains | 478 | 1,047 |
Gross unrealized losses | (8,082) | (269) |
Net unrealized gains (losses) | (7,604) | 778 |
Municipal Obligations [Member] | ||
Available-for-sale Debt Securities [Abstract] | ||
Fair value | 38,359 | 36,286 |
Cost or amortized cost | 36,967 | 35,749 |
Gross unrealized gains | 1,421 | 684 |
Gross unrealized losses | (29) | (147) |
Net unrealized gains (losses) | 1,392 | 537 |
Non-U.S. Government Obligations [Member] | ||
Available-for-sale Debt Securities [Abstract] | ||
Fair value | 30,210 | 24,179 |
Cost or amortized cost | 29,312 | 23,889 |
Gross unrealized gains | 900 | 290 |
Gross unrealized losses | (2) | 0 |
Net unrealized gains (losses) | 898 | 290 |
U.S. Government Obligations [Member] | ||
Available-for-sale Debt Securities [Abstract] | ||
Fair value | 181,935 | 208,440 |
Cost or amortized cost | 172,794 | 206,623 |
Gross unrealized gains | 9,141 | 2,891 |
Gross unrealized losses | 0 | (1,074) |
Net unrealized gains (losses) | $ 9,141 | $ 1,817 |
Investments, Continuous Unreali
Investments, Continuous Unrealized Loss Position (Details) $ in Thousands | Jun. 30, 2020USD ($)Secutrity | Dec. 31, 2019USD ($)Secutrity |
Available-for-sale Securities Continuous Unrealized Loss Positions [Abstract] | ||
Number of securities, 12 months or less | Secutrity | 149 | 88 |
Number of securities, Greater than 12 months | Secutrity | 23 | 69 |
Number of securities, total | Secutrity | 172 | 157 |
Available-for-sale Securities Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Fair value, 12 months or less | $ 130,567 | $ 108,387 |
Fair value, Greater than 12 months | 25,739 | 66,860 |
Fair value, total | 156,306 | 175,247 |
Available-for-sale Securities Continuous Unrealized Loss Position, Aggregate Losses [Abstract] | ||
Gross unrealized loss, 12 months or less | (14,097) | (2,452) |
Gross unrealized loss, Greater than 12 months | (3,936) | (1,100) |
Gross unrealized loss, total | (18,033) | (3,552) |
Available-for-sale Securities Debt Maturities Fair Value [Abstract] | ||
One year or less, Fair Value | 96,464 | |
Excess of one year to five years, Fair Value | 319,395 | |
Excess of five years to ten years, Fair Value | 132,463 | |
Excess of ten years, Fair Value | 15,781 | |
Total contractual maturities, Fair Value | 564,103 | |
Asset-backed securities, Fair Value | 247,898 | |
Total, Fair Value | 812,001 | 795,538 |
Available-for-sale Securities Debt Maturities Amortized Cost Basis [Abstract] | ||
One year or less, Cost or Amortized Cost | 95,568 | |
Excess of one year to five years, Cost or Amortized Cost | 306,894 | |
Excess of five years to ten years, Cost or Amortized Cost | 124,972 | |
Excess of ten years, Cost or Amortized Cost | 15,805 | |
Total contractual maturities, Cost or Amortized Cost | 543,239 | |
Asset-backed securities, Cost or Amortized Cost | 257,280 | |
Cost or amortized cost | $ 800,519 | $ 783,047 |
Investments, Net Realized and U
Investments, Net Realized and Unrealized Gains (Losses) on Investments (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Components of net realized and unrealized gains (losses) on investments [Abstract] | ||||
Gross gains on available-for-sale fixed income securities during the period | $ 2,561 | $ 4,132 | $ 5,213 | $ 7,303 |
Gross losses on available-for-sale fixed income securities sold during the period | (149) | (3,154) | (4,890) | (6,681) |
Impairment losses on investments | (418) | (86) | (458) | (346) |
Change in value of limited partnership investments | (587) | 314 | (1,263) | 722 |
Gains (losses) on equity securities [Abstract] | ||||
Realized gains (losses) on equity securities sold during the period | (6,511) | (265) | (9,209) | 51 |
Unrealized gains (losses) on equity securities held at the end of the period | 15,719 | 1,948 | (6,534) | 7,867 |
Realized and unrealized gains (losses) on equity securities during the period | 9,208 | 1,683 | (15,743) | 7,918 |
Net realized and unrealized gains (losses) on investments | 10,615 | $ 2,889 | (17,141) | $ 8,916 |
Recorded write down to earnings | $ 400 | 500 | ||
Undistributed earnings, net of tax | $ 3,989 |
Reinsurance (Details)
Reinsurance (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Reinsurance [Abstract] | ||||
Premiums ceded to reinsurers | $ 28,216 | $ 32,425 | $ 56,683 | $ 62,598 |
Losses and loss expenses ceded to reinsurers | 24,394 | 28,859 | 47,930 | 59,648 |
Commissions from reinsurers | $ 7,052 | $ 8,176 | $ 14,580 | $ 15,410 |
Loss and Loss Expense Reserve_2
Loss and Loss Expense Reserves (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Activity in the reserve for losses and loss expenses [Roll Forward] | ||
Reserves, gross of reinsurance recoverable, at the beginning of the year | $ 988,305 | $ 865,339 |
Reinsurance recoverable on unpaid losses at the beginning of the year | 398,305 | 375,935 |
Reserves at the beginning of the year | 590,000 | 489,404 |
Provision for losses and loss expenses [Abstract] | ||
Claims occurring during the current period | 150,366 | 179,211 |
Claims occurring during prior periods | (326) | (1,656) |
Total incurred | 150,040 | 177,555 |
Loss and loss expense payments [Abstract] | ||
Claims occurring during the current period | 26,246 | 30,573 |
Claims occurring during prior periods | 103,798 | 92,822 |
Total paid | 130,044 | 123,395 |
Reserves at the end of the period | 609,996 | 543,564 |
Reinsurance recoverable on unpaid losses at the end of the period | 405,364 | 389,899 |
Reserves, gross of reinsurance recoverable, at the end of the period | $ 1,015,360 | $ 933,463 |
Segment Information (Details)
Segment Information (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2020USD ($)Segment | Jun. 30, 2019USD ($) | |
Segment Information [Abstract] | ||||
Number of reportable segments | Segment | 1 | |||
Summary of Segment Revenue [Abstract] | ||||
Net premiums earned | $ 97,730 | $ 115,631 | $ 207,389 | $ 225,644 |
Net investment income | 6,379 | 6,500 | 13,616 | 12,732 |
Net realized and unrealized gains (losses) on investments | 10,615 | 2,889 | (17,141) | 8,916 |
Commissions and other income | 1,889 | 1,978 | 3,551 | 4,043 |
Total revenues | 116,613 | 126,998 | 207,415 | 251,335 |
Property and Casualty Insurance [Member] | ||||
Summary of Segment Revenue [Abstract] | ||||
Net premiums earned | 97,730 | 115,631 | 207,389 | 225,644 |
Net investment income | 6,379 | 6,500 | 13,616 | 12,732 |
Net realized and unrealized gains (losses) on investments | 10,615 | 2,889 | (17,141) | 8,916 |
Commissions and other income | 1,889 | 1,978 | 3,551 | 4,043 |
Total revenues | $ 116,613 | $ 126,998 | $ 207,415 | $ 251,335 |
Debt (Details)
Debt (Details) - Revolving Credit Facility [Member] $ in Thousands | 6 Months Ended | |
Jun. 30, 2020USD ($)Covenant | Aug. 09, 2018USD ($) | |
Credit Agreement [Abstract] | ||
Maximum credit limit | $ 40,000 | |
Additional incremental loans limit | $ 35,000 | |
Expiration date | Aug. 9, 2022 | |
Optional period of fixed interest | 1 year | |
Outstanding drawings | $ 20,000 | |
Effective interest rate | 1.29% | |
Amount remaining under credit facility | $ 20,000 | |
Number of financial covenants | Covenant | 2 | |
Net worth and maximum consolidated leverage ratio | 0.35 |
Taxes (Details)
Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Mar. 31, 2020 | |
Taxes [Abstract] | |||||
Effective federal tax rate on consolidated loss | 20.00% | 21.30% | 1.30% | 21.60% | |
Valuation allowance | $ 2,388 | $ 2,388 | $ 4,929 | ||
Valuation allowance recorded in statement of operations | $ 130 | 2,176 | |||
Reduction in valuation allowance | $ (2,541) |
Fair Value (Details)
Fair Value (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Fixed income securities [Abstract] | ||
Total fixed income securities | $ 812,001 | $ 795,538 |
Equity securities [Abstract] | ||
Total equity securities | 46,009 | 76,812 |
Recurring [Member] | ||
Fixed income securities [Abstract] | ||
Agency collateralized mortgage obligations | 11,054 | 12,093 |
Agency mortgage-backed securities | 91,512 | 56,280 |
Asset-backed securities | 99,830 | 106,397 |
Bank loans | 8,121 | 14,568 |
Certificates of deposit | 2,835 | 2,835 |
Collateralized mortgage obligations | 6,749 | 5,616 |
Corporate securities | 290,889 | 276,087 |
Options embedded in convertible securities | 5,005 | 5,294 |
Mortgage-backed securities | 45,502 | 47,463 |
Municipal obligations | 38,359 | 36,286 |
Non-U.S. government obligations | 30,210 | 24,179 |
U.S. government obligations | 181,935 | 208,440 |
Total fixed income securities | 812,001 | 795,538 |
Equity securities [Abstract] | ||
Consumer | 10,087 | 16,707 |
Energy | 1,333 | 3,074 |
Financial | 22,468 | 31,577 |
Industrial | 3,483 | 4,927 |
Technology | 2,443 | 2,817 |
Funds (e.g., mutual funds, closed end funds, ETFs) | 0 | 9,460 |
Other | 6,195 | 8,250 |
Total equity securities | 46,009 | 76,812 |
Short-term investments | 1,000 | 1,000 |
Cash equivalents | 94,039 | 59,780 |
Total | 953,049 | 933,130 |
Recurring [Member] | Level 1 [Member] | ||
Fixed income securities [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 | 2,835 | 2,835 |
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 income securities | 2,835 | 2,835 |
Equity securities [Abstract] | ||
Consumer | 10,087 | 16,707 |
Energy | 1,333 | 3,074 |
Financial | 22,468 | 31,577 |
Industrial | 3,483 | 4,927 |
Technology | 2,443 | 2,817 |
Funds (e.g., mutual funds, closed end funds, ETFs) | 0 | 9,460 |
Other | 6,195 | 8,250 |
Total equity securities | 46,009 | 76,812 |
Short-term investments | 1,000 | 1,000 |
Cash equivalents | 0 | 0 |
Total | 49,844 | 80,647 |
Recurring [Member] | Level 2 [Member] | ||
Fixed income securities [Abstract] | ||
Agency collateralized mortgage obligations | 11,054 | 12,093 |
Agency mortgage-backed securities | 91,512 | 56,280 |
Asset-backed securities | 99,830 | 106,397 |
Bank loans | 8,121 | 14,568 |
Certificates of deposit | 0 | 0 |
Collateralized mortgage obligations | 6,749 | 5,616 |
Corporate securities | 290,889 | 276,087 |
Options embedded in convertible securities | 5,005 | 5,294 |
Mortgage-backed securities | 45,502 | 47,463 |
Municipal obligations | 38,359 | 36,286 |
Non-U.S. government obligations | 30,210 | 24,179 |
U.S. government obligations | 181,935 | 208,440 |
Total fixed income securities | 809,166 | 792,703 |
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 investments | 0 | 0 |
Cash equivalents | 94,039 | 59,780 |
Total | 903,205 | 852,483 |
Recurring [Member] | Level 3 [Member] | ||
Fixed income securities [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 income securities | 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 investments | 0 | 0 |
Cash equivalents | 0 | 0 |
Total | $ 0 | $ 0 |
Fair Value, Balance Sheet Group
Fair Value, Balance Sheet Grouping (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Assets [Abstract] | ||
Limited partnerships | $ 7,393 | $ 23,292 |
Carrying Value [Member] | ||
Assets [Abstract] | ||
Limited partnerships | 7,393 | 23,292 |
Commercial mortgage loans | 11,875 | 11,782 |
Liabilities [Abstract] | ||
Short-term borrowings | 20,000 | 20,000 |
Fair Value [Member] | ||
Assets [Abstract] | ||
Limited partnerships | 7,393 | 23,292 |
Commercial mortgage loans | 12,514 | 12,068 |
Liabilities [Abstract] | ||
Short-term borrowings | 20,000 | 20,000 |
Fair Value [Member] | Level 1 [Member] | ||
Assets [Abstract] | ||
Limited partnerships | 0 | 0 |
Commercial mortgage loans | 0 | 0 |
Liabilities [Abstract] | ||
Short-term borrowings | 0 | 0 |
Fair Value [Member] | Level 2 [Member] | ||
Assets [Abstract] | ||
Limited partnerships | 0 | 0 |
Commercial mortgage loans | 0 | 0 |
Liabilities [Abstract] | ||
Short-term borrowings | 20,000 | 20,000 |
Fair Value [Member] | Level 3 [Member] | ||
Assets [Abstract] | ||
Limited partnerships | 7,393 | 23,292 |
Commercial mortgage loans | 12,514 | 12,068 |
Liabilities [Abstract] | ||
Short-term borrowings | $ 0 | $ 0 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) $ / shares in Units, $ in Thousands | Nov. 05, 2019USD ($)Manager | May 22, 2019shares | Nov. 13, 2018shares | Jun. 30, 2020USD ($)$ / sharesshares | Dec. 31, 2018shares |
Stock Based Compensation [Abstract] | |||||
Shares distribution period from grant date | 1 year | ||||
5/8/2018 [Member] | |||||
Summary of stock Issuances [Abstract] | |||||
Number of shares issued (in shares) | 19,085 | ||||
Vesting date | May 8, 2019 | ||||
Service period, beginning | Jul. 1, 2018 | ||||
Service period, ending | Jun. 30, 2019 | ||||
Grant date fair value per share (in dollars per share) | $ / shares | $ 23.05 | ||||
5/7/2019 [Member] | |||||
Summary of stock Issuances [Abstract] | |||||
Number of shares issued (in shares) | 29,536 | ||||
Vesting date | May 7, 2020 | ||||
Service period, beginning | Jul. 1, 2019 | ||||
Service period, ending | Jun. 30, 2020 | ||||
Grant date fair value per share (in dollars per share) | $ / shares | $ 16.25 | ||||
5/17/2019 [Member] | |||||
Summary of stock Issuances [Abstract] | |||||
Number of shares issued (in shares) | 3,591 | ||||
Vesting date | May 7, 2020 | ||||
Service period, beginning | Jul. 1, 2019 | ||||
Service period, ending | Jun. 30, 2020 | ||||
Grant date fair value per share (in dollars per share) | $ / shares | $ 16.25 | ||||
5/22/2019 [Member] | |||||
Summary of stock Issuances [Abstract] | |||||
Number of shares issued (in shares) | 3,541 | ||||
Vesting date | May 7, 2020 | ||||
Service period, beginning | Jul. 1, 2019 | ||||
Service period, ending | Jun. 30, 2020 | ||||
Grant date fair value per share (in dollars per share) | $ / shares | $ 16.25 | ||||
5/5/2020 [Member] | |||||
Summary of stock Issuances [Abstract] | |||||
Number of shares issued (in shares) | 42,220 | ||||
Vesting date | May 5, 2021 | ||||
Service period, beginning | Jul. 1, 2020 | ||||
Service period, ending | Jun. 30, 2021 | ||||
Grant date fair value per share (in dollars per share) | $ / shares | $ 14.21 | ||||
Restricted [Member] | John D. Nichols, Jr. [Member] | |||||
Summary of stock Issuances [Abstract] | |||||
Number of shares issued (in shares) | 85,000 | ||||
Restricted [Member] | John D. Nichols, Jr. [Member] | Tranche One [Member] | |||||
Summary of stock Issuances [Abstract] | |||||
Number of shares vested (in shares) | 42,500 | ||||
Stock based compensation expense | $ | $ 128 | ||||
Restricted [Member] | John D. Nichols, Jr. [Member] | Tranche Two [Member] | |||||
Summary of stock Issuances [Abstract] | |||||
Number of shares vested (in shares) | 21,250 | ||||
Restricted [Member] | John D. Nichols, Jr. [Member] | Tranche Three [Member] | |||||
Summary of stock Issuances [Abstract] | |||||
Number of shares vested (in shares) | 21,250 | ||||
Restricted [Member] | Edgecliffe-Johnson Stock Grant [Member] | |||||
Summary of stock Issuances [Abstract] | |||||
Number of shares issued (in shares) | 70,000 | ||||
Stock based compensation expense | $ | 135 | ||||
Restricted [Member] | Edgecliffe-Johnson Stock Grant [Member] | Tranche One [Member] | |||||
Summary of stock Issuances [Abstract] | |||||
Number of shares vested (in shares) | 35,000 | ||||
Restricted [Member] | Edgecliffe-Johnson Stock Grant [Member] | Tranche Two [Member] | |||||
Summary of stock Issuances [Abstract] | |||||
Number of shares vested (in shares) | 21,000 | ||||
Restricted [Member] | Edgecliffe-Johnson Stock Grant [Member] | Tranche Three [Member] | |||||
Summary of stock Issuances [Abstract] | |||||
Number of shares vested (in shares) | 14,000 | ||||
Restricted [Member] | Senior Management [Member] | |||||
Summary of stock Issuances [Abstract] | |||||
Shares granted in period | $ | $ 1,100 | ||||
Stock based compensation expense | $ | $ 176 | ||||
Number of members awarded equity compensation | Manager | 7 | ||||
2018 LTIP Awards [Member] | Performance Based Equity Award [Member] | |||||
Summary of stock Issuances [Abstract] | |||||
Number of shares issued (in shares) | 0 | ||||
2018 VCIP Awards [Member] | Performance Based Equity Award [Member] | |||||
Summary of stock Issuances [Abstract] | |||||
Number of shares issued (in shares) | 0 | ||||
Performance period | 3 years | ||||
Vesting period | 3 years | ||||
2019 LTIP Awards [Member] | Performance Based Equity Award [Member] | |||||
Summary of stock Issuances [Abstract] | |||||
Stock based compensation expense | $ | $ 40 | ||||
Annual vesting percentage of shares in year one | 33.30% | ||||
Annual vesting percentage of shares in year two | 33.30% | ||||
Annual vesting percentage of shares in year three | 33.30% |
Litigation, Commitments and C_2
Litigation, Commitments and Contingencies (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Loss Contingency [Abstract] | ||
Estimated recoverable amount | $ 421,757 | $ 432,067 |
ASU 2016-13 [Member] | ||
Loss Contingency [Abstract] | ||
Allowance for credit losses, before tax | 15,000 | |
Allowance for credit losses, net of tax | 11,850 | |
Charge incurred to operations, gross | 31,730 | |
Charge incurred to operations, net of tax | $ 25,067 | |
Personnel Staffing Group d/b/a MVP Staffing [Member] | ||
Loss Contingency [Abstract] | ||
Per claim deductible amount | 500 | |
Damages sought | $ 0 | |
Percentage of required collateral | 110.00% | |
Deductible receivables | $ 17,338 | |
Average monthly deductible invoices | 1,085 | |
Estimated recoverable amount | 46,730 | |
Personnel Staffing Group d/b/a MVP Staffing [Member] | Minimum [Member] | ||
Loss Contingency [Abstract] | ||
Loss fund | $ 4,000 |
Shareholders' Equity (Details)
Shareholders' Equity (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Stock Repurchase Program [Abstract] | ||
Stock repurchase program, shares authorized (in shares) | 2,464,209 | |
Stock repurchase program, authorized amount | $ 25,000 | |
Stock repurchase program, authorized amount per quarter | 6,250 | |
Repurchase of common shares | $ 1,782 | $ 6,487 |
Class B [Member] | ||
Stock Repurchase Program [Abstract] | ||
Repurchase of common stock (in shares) | 126,764 |
Shareholders' Equity, Changes i
Shareholders' Equity, Changes in Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | $ 305,383 | $ 366,070 | $ 364,316 | $ 356,082 |
Other comprehensive income (loss) before reclassifications | (1,319) | 15,349 | ||
Amounts reclassified from accumulated other comprehensive income (loss) | (157) | 215 | ||
Net current-period other comprehensive income (loss) | 20,072 | 6,801 | (1,476) | 15,564 |
Ending balance | 336,038 | 367,416 | 336,038 | 367,416 |
Other Comprehensive Income (Loss) [Member] | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (12,179) | 1,416 | 9,369 | (7,347) |
Ending balance | 7,893 | 8,217 | 7,893 | 8,217 |
Foreign Currency [Member] | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (494) | (1,139) | ||
Other comprehensive income (loss) before reclassifications | (466) | 591 | ||
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | 0 | ||
Net current-period other comprehensive income (loss) | (466) | 591 | ||
Ending balance | (960) | (548) | (960) | (548) |
Unrealized Holding Gains (Losses) on Available-for-sale Securities [Member] | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | 9,863 | (6,208) | ||
Other comprehensive income (loss) before reclassifications | (853) | 14,758 | ||
Amounts reclassified from accumulated other comprehensive income (loss) | (157) | 215 | ||
Net current-period other comprehensive income (loss) | (1,010) | 14,973 | ||
Ending balance | $ 8,853 | $ 8,765 | $ 8,853 | $ 8,765 |
Related Parties (Details)
Related Parties (Details) - Investment Firm Services [Member] $ in Thousands | 6 Months Ended | |
Jun. 30, 2020USD ($)Director | Jun. 30, 2019USD ($) | |
Related Party [Abstract] | ||
Management fees and commissions | $ 67 | $ 71 |
Director [Member] | ||
Related Party [Abstract] | ||
Number of related parties | Director | 1 | |
Market value of equity and fixed maturity securities portfolio | $ 6,946 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event [Member] | Aug. 04, 2020$ / shares |
Subsequent Event [Abstract] | |
Dividend payable, date declared | Aug. 4, 2020 |
Dividend payable, date to be paid | Sep. 1, 2020 |
Dividend payable, date of record | Aug. 18, 2020 |
Class A [Member] | |
Subsequent Event [Abstract] | |
Dividend payable (in dollars per share) | $ 0.10 |
Class B [Member] | |
Subsequent Event [Abstract] | |
Dividend payable (in dollars per share) | $ 0.10 |