Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2018 | Feb. 26, 2019 | Jun. 30, 2018 | |
Document and Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | UFCS | ||
Entity Registrant Name | UNITED FIRE GROUP INC | ||
Entity Central Index Key | 101,199 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 25,112,309 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 1.1 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Fixed maturities | ||
Held-to-maturity, at amortized cost (fair value $0 in 2018 and $150 in 2017) | $ 0 | $ 150 |
Available-for-sale, at fair value (amortized cost $1,761,289 in 2018 and $1,516,610 in 2017) | 1,749,488 | 1,535,070 |
Trading securities, at fair value (amortized cost $11,277 in 2018 and $14,582 in 2017) | 13,240 | 16,842 |
Equity securities, at fair value (cost $64,819 in 2018 and $63,275 in 2017) | 248,361 | 287,344 |
Mortgage loans | 25,782 | 0 |
Other long-term investments | 37,077 | 49,352 |
Short-term investments | 175 | 175 |
Total Investments | 2,074,123 | 1,888,933 |
Cash and cash equivalents | 64,454 | 95,562 |
Accrued investment income | 15,774 | 13,841 |
Premiums receivable (net of allowance for doubtful accounts of $785 in 2018 and $1,255 in 2017) | 346,825 | 328,513 |
Deferred policy acquisition costs | 92,796 | 88,102 |
Property and equipment (primarily land and buildings, at cost, less accumulated depreciation of $39,894 in 2018 and $51,603 in 2017) | 97,194 | 68,992 |
Reinsurance receivables and recoverables | 61,337 | 63,194 |
Prepaid reinsurance premiums | 7,063 | 3,749 |
Deferred tax asset | 912 | 0 |
Income taxes receivable | 15,035 | 6,031 |
Goodwill and net intangible assets | 23,252 | 23,971 |
Other assets | 17,933 | 16,409 |
Assets held for sale | 0 | 1,586,134 |
Total assets | 2,816,698 | 4,183,431 |
Liabilities | ||
Losses and loss settlement expenses | 1,312,483 | 1,224,183 |
Unearned premiums | 492,918 | 465,391 |
Accrued expenses and other liabilities | 122,922 | 167,396 |
Deferred income taxes | 0 | 5,953 |
Liabilities held for sale | 0 | 1,347,135 |
Total liabilities | 1,928,323 | 3,210,058 |
Stockholders' equity | ||
Common stock, $0.001 par value; authorized 75,000,000 shares; 25,097,408 and 24,916,806 shares issued and outstanding in 2018 and 2017, respectively | 25 | 25 |
Additional paid-in capital | 203,350 | 196,334 |
Retained earnings | 715,472 | 608,700 |
Accumulated other comprehensive income, net of tax | (30,472) | 168,314 |
Total stockholders' equity | 888,375 | 973,373 |
Total liabilities and stockholders' equity | $ 2,816,698 | $ 4,183,431 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Fixed maturities, Held-to-maturity, at fair value | $ 0 | $ 150 |
Fixed maturities, Available-for-sale securities, amortized cost | 1,761,289 | 1,516,610 |
Fixed maturities, Trading securities, at amortized cost | 11,277 | 14,582 |
Equity securities, cost | 64,819 | 63,275 |
Allowance for doubtful accounts | 785 | 1,255 |
Property and equipment, accumulated depreciation | $ 39,894 | $ 51,603 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 75,000,000 | 75,000,000 |
Common stock, shares issued (in shares) | 25,097,408 | 24,916,806 |
Common stock, shares outstanding (in shares) | 25,097,408 | 24,916,806 |
Consolidated Statements of Inco
Consolidated Statements of Income and Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenues | |||
Net premiums earned | $ 1,037,451 | $ 997,492 | $ 936,131 |
Investment income, net of investment expenses | 52,894 | 51,190 | 55,284 |
Net realized investment gains (losses) (includes reclassifications for net unrealized gains on available-for-sale securities of ($784) in 2018; $6,390 in 2017; and $4,520 in 2016 previously included in accumulated other comprehensive income) | (20,179) | 4,055 | 4,947 |
Total revenues | 1,070,166 | 1,052,737 | 996,362 |
Benefits, losses and expenses | |||
Losses and loss settlement expenses | 731,611 | 725,713 | 652,433 |
Amortization of deferred policy acquisition costs | 206,232 | 207,746 | 202,892 |
Other underwriting expenses (includes reclassifications for employee benefit costs of $6,642 in 2018; $5,408 in 2017; and $5,486 in 2016 previously included in accumulated other comprehensive income) | 141,473 | 103,628 | 83,540 |
Total benefits, losses and expenses | 1,079,316 | 1,037,087 | 938,865 |
Income (loss) from continuing operations before income taxes | (9,150) | 15,650 | 57,497 |
Federal income tax expense (benefit) (includes reclassifications of $1,559 in 2018; $(344) in 2017; and $338 in 2016 previously included in accumulated other comprehensive income) | (11,405) | (29,220) | 8,379 |
Net income from continuing operations | 2,255 | 44,870 | 49,118 |
Income (loss) from discontinued operations, net of taxes | (1,912) | 6,153 | 786 |
Gain on sale of discontinued operations, net of taxes | 27,307 | 0 | 0 |
Net income | 27,650 | 51,023 | 49,904 |
Other comprehensive income (loss) | |||
Change in net unrealized appreciation on investments | (50,985) | 72,251 | 13,017 |
Change in liability for underfunded employee benefit plans | 25,513 | (26,122) | 30,045 |
Other comprehensive income (loss), before tax and reclassification adjustments | (25,472) | 46,129 | 43,062 |
Income tax effect | 5,349 | (17,540) | (15,072) |
Other comprehensive income (loss), after tax, before reclassification adjustments | (20,123) | 28,589 | 27,990 |
Reclassification adjustment for net realized (gains) losses included in income | 784 | (6,390) | (4,520) |
Reclassification adjustment for employee benefit costs included in expense | 6,642 | 5,408 | 5,486 |
Total reclassification adjustments, before tax | 7,426 | (982) | 966 |
Income tax effect | (1,559) | 344 | (338) |
Total reclassification adjustments, after tax | 5,867 | (638) | 628 |
Comprehensive income | $ 13,394 | $ 78,974 | $ 78,522 |
Weighted average common shares outstanding (in shares) | 25,006,211 | 25,103,720 | 25,335,706 |
Earnings per common share from continuing operations: | |||
Basic (in dollars per share) | $ 0.09 | $ 1.79 | $ 1.94 |
Diluted (in dollars per share) | 0.09 | 1.75 | 1.90 |
Earnings per common share: | |||
Basic (in dollars per share) | 1.11 | 2.03 | 1.97 |
Diluted (in dollars per share) | $ 1.08 | $ 1.99 | $ 1.93 |
Consolidated Statements of In_2
Consolidated Statements of Income and Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Statement [Abstract] | |||
Reclassifications for unrealized net gains on available-for-sale securities | $ (784) | $ 6,390 | $ 4,520 |
Reclassifications for employee benefit costs | 6,642 | 5,408 | 5,486 |
Reclassifications adjustments tax | $ 1,559 | $ (344) | $ 338 |
Consolidated Statement of Stock
Consolidated Statement of Stockholders' Equity - USD ($) $ in Thousands | Total | Common stock | Additional paid-in capital | Retained earnings | Accumulated other comprehensive income, net of tax | ||
Balance, beginning of year at Dec. 31, 2015 | $ 878,897 | $ 25 | $ 207,426 | $ 591,009 | $ 80,437 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Shares repurchased | 0 | (3,746) | |||||
Compensation expense and related tax benefit for stock-based award grants | 2,880 | ||||||
Shares issued for stock-based awards | 0 | 9,922 | |||||
Accumulated effect of change in enacted tax rate | 0 | 0 | |||||
Change in net unrealized investment appreciation | 0 | 5,523 | [1] | ||||
Net income | 49,904 | 49,904 | |||||
Dividends on common stock ($4.21 per share in 2018; $1.09 per share in 2017; $0.97 per share in 2016) | (24,591) | ||||||
Change in liability for underfunded employee benefit plans | [2] | 23,095 | |||||
All other changes in stockholders' equity accounts | 13,083 | ||||||
Balance, end of year at Dec. 31, 2016 | 941,884 | 25 | 216,482 | 616,322 | 109,055 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Cumulative effect of change in accounting principle | 0 | ||||||
Shares repurchased | 0 | (29,784) | |||||
Compensation expense and related tax benefit for stock-based award grants | 4,808 | ||||||
Shares issued for stock-based awards | 0 | 4,828 | |||||
Accumulated effect of change in enacted tax rate | 31,308 | (31,308) | 31,308 | ||||
Change in net unrealized investment appreciation | 0 | 44,315 | [1] | ||||
Net income | 51,023 | 51,023 | |||||
Dividends on common stock ($4.21 per share in 2018; $1.09 per share in 2017; $0.97 per share in 2016) | (27,337) | ||||||
Change in liability for underfunded employee benefit plans | [2] | (16,364) | |||||
All other changes in stockholders' equity accounts | (19,534) | ||||||
Balance, end of year at Dec. 31, 2017 | 973,373 | 25 | 196,334 | 608,700 | 168,314 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Cumulative effect of change in accounting principle | 0 | ||||||
Shares repurchased | 0 | (5,404) | |||||
Compensation expense and related tax benefit for stock-based award grants | 5,249 | ||||||
Shares issued for stock-based awards | 0 | 7,171 | |||||
Accumulated effect of change in enacted tax rate | 0 | 0 | |||||
Change in net unrealized investment appreciation | (6,714) | (32,944) | [1] | ||||
Net income | 27,650 | 27,650 | |||||
Dividends on common stock ($4.21 per share in 2018; $1.09 per share in 2017; $0.97 per share in 2016) | (105,408) | ||||||
Change in liability for underfunded employee benefit plans | [2] | 25,402 | |||||
All other changes in stockholders' equity accounts | (112,648) | ||||||
Balance, end of year at Dec. 31, 2018 | $ 888,375 | $ 25 | $ 203,350 | $ 715,472 | (30,472) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Cumulative effect of change in accounting principle | $ (191,244) | ||||||
[1] | The change in net unrealized appreciation is net of reclassification adjustments and income taxes. | ||||||
[2] | The change in liability for underfunded employee benefit plans is net of income taxes. |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Stockholders' Equity [Abstract] | |||
Shares repurchased (in shares) | 120,372 | 701,899 | 90,415 |
Shares issued for stock-based awards (in shares) | 300,974 | 198,694 | 376,142 |
Dividends on common stock (in dollars per share) | $ 4.21 | $ 1.09 | $ 0.97 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash Flows From Operating Activities | |||
Net income | $ 27,650 | $ 51,023 | $ 49,904 |
Less net income (loss) from discontinued operations, net of taxes | (1,912) | 6,153 | 786 |
Adjustments to reconcile net income to net cash provided by operating activities | |||
Net accretion of bond premium | 8,788 | 8,872 | 7,049 |
Depreciation and amortization | 5,174 | 4,574 | 6,035 |
Stock-based compensation expense | 5,249 | 4,808 | 3,696 |
Net realized investment (gains) losses | 20,179 | (4,055) | (4,947) |
Net cash flows from trading investments | 22,514 | (1,909) | (2,390) |
Deferred income tax benefit | (16,220) | (5,921) | 3,331 |
Changes in: | |||
Accrued investment income | (1,933) | (224) | (874) |
Premiums receivable | (18,312) | (22,311) | (29,685) |
Deferred policy acquisition costs | (4,694) | 5,260 | (2,815) |
Reinsurance receivables | 1,857 | (487) | 4,206 |
Prepaid reinsurance premiums | (3,314) | 33 | 8 |
Income taxes receivable | (9,004) | 8,254 | (14,285) |
Other assets | (1,524) | (2,465) | 758 |
Losses, claims and loss settlement expenses | 88,300 | 100,287 | 120,001 |
Unearned premiums | 27,527 | 21,589 | 28,830 |
Accrued expenses and other liabilities | (12,319) | (423) | (7,605) |
Income taxes payable | 0 | 0 | (5,365) |
Deferred income taxes | (10,746) | (25,883) | 1,495 |
Other, net | 9,847 | 3,378 | (9,943) |
Cash from operating activities - continuing operations | 111,369 | 93,377 | 97,500 |
Cash from operating activities - discontinued operations | 4,024 | 31,847 | 67,766 |
Cash from operating activities - gain on sale of discontinued operations | (34,851) | 0 | 0 |
Total adjustments | 80,542 | 125,224 | 165,266 |
Net cash provided by operating activities | 110,104 | 170,094 | 214,384 |
Cash Flows From Investing Activities | |||
Proceeds from sale of available-for-sale investments | 132,250 | 7,404 | 1,968 |
Proceeds from call and maturity of held-to-maturity investments | 0 | 150 | 493 |
Proceeds from call and maturity of available-for-sale investments | 122,250 | 191,521 | 323,653 |
Proceeds from short-term and other investments | 9,303 | 6,032 | 1,947 |
Proceeds from sale of discontinued operations | 276,055 | 0 | 0 |
Purchase of held-to-maturity investments | 0 | (150) | (42) |
Purchase of available-for-sale investments | (507,380) | ||
Purchase of available-for-sale investments | (260,957) | (443,953) | |
Purchase of short-term and other investments | (32,972) | (6,428) | (4,155) |
Net purchases and sales of property and equipment | (33,053) | (17,158) | (7,600) |
Cash from investing activities - continuing operations | (33,547) | (79,586) | (127,689) |
Cash from investing activities - discontinued operations | 14,343 | 17,601 | 15,286 |
Net cash used in investing activities | (19,204) | (61,985) | (112,403) |
Cash Flows From Financing Activities | |||
Payment of cash dividends | (105,408) | (27,337) | (24,591) |
Repurchase of common stock | (5,404) | (29,784) | (3,746) |
Issuance of common stock | 7,171 | 4,828 | 9,922 |
Tax impact from issuance of common stock | 0 | 0 | (816) |
Cash from financing activities - continued operations | (103,641) | (52,293) | (19,231) |
Cash from financing activities - discontinued operations | (11,547) | (55,256) | (78,346) |
Net cash used in financing activities | (115,188) | (107,549) | (97,577) |
Net Change in Cash and Cash Equivalents | (24,288) | 560 | 4,404 |
Less: decrease (increase) in cash and cash equivalents - discontinued operations | (6,820) | 5,808 | (4,706) |
Net increase (decrease) in cash and cash equivalents - continuing operations | (31,108) | 6,368 | (302) |
Cash and Cash Equivalents at Beginning of Year - Continuing Operations | 95,562 | 89,194 | 89,496 |
Cash and Cash Equivalents at End of Year - Continuing Operations | $ 64,454 | $ 95,562 | $ 89,194 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Business United Fire Group, Inc. ("UFG", "United Fire", the "Registrant", the "Company", "we", "us", or "our") and its consolidated subsidiaries and affiliates are engaged in the business of writing property and casualty insurance through a network of independent agencies. Our insurance company subsidiaries are licensed as a property and casualty insurer in 46 states, plus the District of Columbia. Discontinued Operations We have historically reported our operations in two business segments: property and casualty insurance and life insurance. On September 18, 2017, the Company signed a definitive agreement to sell its subsidiary, United Life Insurance Company ("United Life"), to Kuvare US Holdings, Inc. ("Kuvare") and on March 30, 2018, the sale closed. As a result, our life insurance business, previously a separate segment, was considered held for sale and reported as discontinued operations in the Consolidated Balance Sheets, Consolidated Statements of Income and Comprehensive Income and Consolidated Statements of Cash Flows (collectively, the "Consolidated Financial Statements"). Subsequent to the announcement of this sale, our continuing operations are reported as one business segment. All current and prior periods reflected in this Form 10-K have been presented as continuing and discontinued operations, unless otherwise noted. For more information, refer to Note 17 "Discontinued Operations." Principles of Consolidation The accompanying Consolidated Financial Statements include United Fire and its wholly owned subsidiaries: United Fire & Casualty Company, United Real Estate Holdings Company, LLC, Addison Insurance Company, Lafayette Insurance Company, United Fire & Indemnity Company, United Fire Lloyds, UFG Specialty Insurance Company, Financial Pacific Insurance Company, Franklin Insurance Company, Mercer Insurance Company, and Mercer Insurance Company of New Jersey, Inc. United Fire Lloyds, an affiliate of United Fire & Indemnity Company, is organized as a Texas Lloyds plan, which is an aggregation of underwriters who, under a common name, engage in the business of insurance through a corporate attorney-in-fact. United Fire Lloyds is financially and operationally controlled by United Fire & Indemnity Company, its corporate attorney-in-fact, pursuant to three types of agreements: trust agreements between United Fire & Indemnity Company and certain individuals who agree to serve as trustees; articles of agreement among the trustees who agree to act as underwriters to establish how the Lloyds plan will be operated; and powers of attorney from each of the underwriters appointing a corporate attorney-in-fact, who is authorized to operate the Lloyds plan. Because United Fire & Indemnity Company can name the trustees, the Lloyds plan is perpetual, subject only to United Fire & Indemnity Company's desire to terminate it. United Fire & Indemnity Company provides all of the statutory capital necessary for the formation of the Lloyds plan by contributing capital to each of the trustees. The trust agreements require the trustees to become underwriters of the Lloyds plan, to contribute the capital to the Lloyds plan, to sign the articles of agreement and to appoint the attorney-in-fact. The trust agreements also require the trustees to pay to United Fire & Indemnity Company all of the profits and benefits received by the trustees as underwriters of the Lloyds plan, which means that United Fire & Indemnity Company has the right to receive 100 percent of the gains and profits from the Lloyds plan. The trustees serve at the pleasure of United Fire & Indemnity Company, which may remove a trustee and replace that trustee at any time. Termination of a trustee must be accompanied by the resignation of the trustee as an underwriter, so that the trustee can obtain the capital contribution from the Lloyds plan to reimburse United Fire & Indemnity Company. By retaining the ability to terminate trustees, United Fire & Indemnity Company possesses the ability to name and remove the underwriters. United Real Estate Holdings, LLC, formed in 2013, is a wholly owned subsidiary of United Fire & Casualty Company and is organized as an Iowa limited liability corporation, an unincorporated association formed for the purpose of holding United Fire & Casualty Company's ownership in commercial real estate. Basis of Presentation The accompanying Consolidated Financial Statements have been prepared on the basis of U.S. generally accepted accounting principles ("GAAP"), which differ in some respects from those followed in preparing our statutory reports to insurance regulatory authorities. Our stand-alone subsidiary financial statements submitted to insurance regulatory authorities are presented on the basis of accounting practices prescribed or permitted by the insurance departments of the states in which we are domiciled ("statutory accounting principles"). Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The financial statement categories that are most dependent on management estimates and assumptions include: investments; deferred policy acquisition costs; reinsurance receivables and recoverables; future policy benefits and losses, claims and loss settlement expenses; and pension and post-retirement benefit obligations. Continuing Operations - Property and Casualty Insurance Business Premiums written are deferred and recorded as earned premium on a daily pro rata basis over the terms of the respective policies. Unearned premium reserves are established for the portion of premiums written applicable to the unexpired term of insurance policies in force. Premiums receivable are presented net of an estimated allowance for doubtful accounts, which is based on a periodic evaluation of the aging and collectability of amounts due from agents and policyholders. To establish loss and loss settlement expense reserves, we make estimates and assumptions about the future development of claims. Actual results could differ materially from those estimates, which are subjective, complex and inherently uncertain. When we establish and adjust reserves, we do so given our knowledge at the time of the circumstances and facts of known claims. To the extent that we have overestimated or underestimated our loss and loss settlement expense reserves, we adjust the reserves in the period in which such adjustment is determined. We record our best estimate of reserves for claim litigation that arises in the ordinary course of business. We consider all of our pending litigation as of December 31, 2018 to be ordinary, routine and incidental to our business. Discontinued Operations - Life Insurance Business Our whole life and term insurance (i.e., traditional business) premiums are reported as earned when due and benefits and expenses are associated with premium income in order to result in the recognition of profits over the lives of the related contracts. Premiums receivable are presented net of an estimated allowance for doubtful accounts. Income annuities with life contingencies (single premium immediate annuities and supplementary contracts) have premium recorded and any related expense charge fees recorded as income and expense when the contract is issued. On universal life and deferred annuity policies (i.e., non-traditional business), income and expenses are reported when charged and credited to policyholder account balances in order to result in recognition of profits over the lives of the related contracts. We accomplish this by means of a provision for future policy benefits and the deferral and subsequent amortization of policy acquisition costs. Liabilities for future policy benefits for traditional products are computed by the net level premium method, using interest assumptions ranging from 3.15 percent to 6.0 percent and withdrawal, mortality and morbidity assumptions appropriate at the time the policies were issued. Liabilities for non-traditional business are stated at policyholder account values before surrender charges. Liabilities for traditional immediate annuities are based primarily upon future anticipated cash flows using assumptions for mortality and interest rates. Liabilities for deferred annuities are carried at the account value. Reinsurance Premiums earned and losses and loss settlement expenses incurred are reported net of reinsurance ceded. Ceded insurance business is accounted for on a basis consistent with the original policies issued and the terms of the reinsurance contracts. Refer to Note 4 "Reinsurance" for a discussion of our reinsurance activities. Investments Investments in fixed maturities include bonds and redeemable preferred stocks. Our investments in held-to-maturity fixed maturities are recorded at amortized cost. Our investments in available-for-sale fixed maturities and trading securities are recorded at fair value. In 2018, due to the change in accounting principle adopted on January 1, 2018 described in this section under "Recently Issued Accounting Standards," investments in equity securities, which include common and non-redeemable preferred stocks are recorded at fair value with changes in value recorded as a component of income. Prior to 2018, the change in the fair value of equity securities were held as available-for-sale securities and were reported as a component of accumulated other comprehensive income, net of applicable deferred income taxes, in stockholders' equity. Changes in unrealized appreciation and depreciation, with respect to available-for-sale fixed maturities are reported as a component of accumulated other comprehensive income, net of applicable deferred income taxes, in stockholders' equity. Changes in unrealized appreciation and depreciation, with respect to trading securities, are reported as a component of income. Other long-term investments consist primarily of our interests in limited liability partnerships that are recorded on the equity method of accounting. Included in investments at December 31, 2018 and 2017 , are securities on deposit with, or available to, various regulatory authorities as required by law, with fair values of $20,456 and $1,492,928 respectively. We review all of our investment holdings for appropriate valuation on an ongoing basis. Refer to Note 2 "Summary of Investments" for a discussion of our accounting policy for impairment recognition. Cash and Cash Equivalents For purposes of reporting cash flows, cash and cash equivalents include cash, money market accounts, and non-negotiable certificates of deposit with original maturities of three months or less. In 2018 , 2017 , and 2016 , we made cash payments for income taxes of $29,071 , $7,667 and $24,034 , respectively. In addition, we received federal tax refunds of $1,503 and $13,383 in 2018 and 2017 , respectively, that resulted from the utilization of our 2011 net operating losses and net capital losses in the carryforward period. In 2016 , we did no t receive any federal tax refunds. We made no interest payments in 2018 , 2017 and 2016 . These payments exclude interest credited to policyholders' accounts. Deferred Policy Acquisition Costs ("DAC") Certain costs associated with underwriting new business (primarily commissions, premium taxes and variable underwriting and policy issue expenses associated with successful acquisition efforts) are deferred. The following table is a summary of the components of DAC that are reported in the accompanying Consolidated Financial Statements. Continuing Operations - Property and Casualty Insurance 2018 2017 2016 Recorded asset at beginning of year $ 88,102 $ 93,362 $ 90,547 Underwriting costs deferred 210,926 202,486 205,707 Amortization of deferred policy acquisition costs (206,232 ) (207,746 ) (202,892 ) Recorded asset at end of year $ 92,796 $ 88,102 $ 93,362 Discontinued Operations - Life Insurance Recorded asset at beginning of year $ 71,151 $ 70,750 $ 77,717 Underwriting costs deferred 1,376 5,463 5,564 Amortization of deferred policy acquisition costs (1,895 ) (5,181 ) (8,121 ) $ 70,632 $ 71,032 $ 75,160 Change in "shadow" deferred policy acquisition costs 7,274 119 (4,410 ) Sale of discontinued operations (77,906 ) — — Recorded asset at end of year $ — $ 71,151 $ 70,750 Total Recorded asset at beginning of year $ 159,253 $ 164,112 $ 168,264 Underwriting costs deferred 212,302 207,949 211,271 Amortization of deferred policy acquisition costs (208,127 ) (212,927 ) (211,013 ) $ 163,428 $ 159,134 $ 168,522 Change in "shadow" deferred policy acquisition costs 7,274 119 (4,410 ) Sale of discontinued operations (77,906 ) — — Recorded asset at end of year $ 92,796 $ 159,253 $ 164,112 Our continuing operations property and casualty insurance policy acquisition costs deferred are amortized as premium revenue is recognized. The method followed in computing DAC limits the amount of such deferred costs to their estimated realizable value. This takes into account the premium to be earned, losses and loss settlement expenses expected to be incurred and certain other costs expected to be incurred as the premium is earned. This calculation is performed by line of business in a manner consistent with how the policies are currently being marketed and managed. For the discontinued operations traditional life insurance policies, DAC is amortized to income over the premium-paying period in proportion to the ratio of the expected annual premium revenue to the expected total premium revenue. Expected premium revenue and gross profits are based on the same mortality and withdrawal assumptions used in determining future policy benefits. These assumptions are not revised after policy issuance unless the recorded DAC asset is deemed to be unrecoverable from future expected profits. For the discontinued operations non-traditional life insurance policies, DAC is amortized over the anticipated terms in proportion to the ratio of the expected annual gross profits to the total expected gross profits. Changes in the amount or timing of expected gross profits result in adjustments to the cumulative amortization of these costs. The effect on amortization of DAC for revisions to estimated gross profits is reported in earnings in the period the estimated gross profits are revised. The effect on DAC that results from the assumed realization of unrealized gains (losses) on investments allocated to non-traditional life insurance business is recognized with an offset to net unrealized investment appreciation as of the balance sheet date. The impact of unrealized gains (losses) on available-for-sale securities decreased the DAC asset by $6,294 and $6,413 at December 31, 2017 and 2016 , respectively. There was no impact of unrealized gains and losses on available-for-sale securities on the DAC asset at December 31, 2018 because the non-traditional life insurance business is part of discontinued operations, which was sold on March 30, 2018. Property, Equipment and Depreciation Property and equipment is presented at cost less accumulated depreciation. The following table is a summary of the components of the property and equipment that are reported in the accompanying Consolidated Financial Statements. 2018 2017 Real estate: Land $ 8,396 $ 8,396 Buildings 69,214 48,677 Furniture and fixtures 5,733 4,645 Computer equipment and software 13,851 7,274 Airplane — — Total property and equipment $ 97,194 $ 68,992 Expenditures for maintenance and repairs on property and equipment are generally expensed as incurred. We periodically review these assets for impairment whenever events or changes in business circumstances indicate that the carrying value of the underlying asset may not be recoverable. A loss would be recognized if the estimated fair value of the asset were less than its carrying value. Depreciation is computed primarily by the straight-line method over the following estimated useful lives: Useful Life Computer equipment and software Three years Furniture and fixtures Seven years Leasehold improvements Shorter of the lease term or useful life of the asset Real estate Seven to thirty-nine years Airplane Five years Depreciation expense totaled $4,455 , $3,805 and $5,266 for 2018 , 2017 and 2016 , respectively. Goodwill and Other Intangible Assets Goodwill and other intangible assets arise as a result of business combinations and consist of the excess of the fair value of consideration paid over the tangible assets acquired and liabilities assumed. All of our goodwill and the majority of our intangible assets relate to the acquisition of Mercer Insurance Group on March 28, 2011. We evaluate goodwill and other intangible assets for impairment at least on an annual basis or whenever events or changes in circumstances indicate that it is more likely than not that the carrying amount of goodwill and other intangible assets may exceed its implied fair value. Goodwill is evaluated at the reporting unit level. Any impairment is charged to operations in the period that the impairment is identified. In 2016 we performed a quantitative impairment assessment of our goodwill and in 2018 and 2017 , we performed a qualitative impairment assessment of our goodwill. As a result of these assessments, we did no t recognize an impairment charge on our goodwill in 2018 , 2017 or 2016 . Our other intangible assets, which consist primarily of agency relationships, trade names, state insurance licenses, and software, are being amortized by the straight-line method over periods ranging from 2 years to 15 years , with the exception of state insurance licenses, which are indefinite-lived and not amortized. In 2016 we performed a quantitative impairment assessment of our indefinite-lived intangible assets and, in 2018 and 2017 , we performed a qualitative impairment assessment of our indefinite lived intangible assets. As a result of these assessments, we did not recognize an impairment charge on our intangible assets in 2018 , 2017 and 2016 . Amortization expense totaled $719 in 2018 , 2017 and 2016 , respectively. Income Taxes The Tax Cuts and Jobs Act of 2017 (the "Tax Act") was enacted on December 22, 2017. The Tax Act significantly revised the U.S. corporate income tax laws including lowering the U.S. federal corporate tax rate from 35 percent to 21 percent, effective January 1, 2018. In December 2017, the SEC staff issued Staff Accounting Bulletin No. 118, which addresses how a company recognizes provisional amounts when a company does not have the necessary information available, prepared or analyzed in reasonable detail to complete its accounting for the effect of the changes in the Tax Act. The measurement period ends when a company has obtained, prepared and analyzed the information necessary to finalize its accounting, but cannot extend beyond one year. As of December 31, 2018 we have completed accounting for the tax effects of enactment of the Tax Act and no adjustments were made during the measurement period. Deferred tax assets and liabilities are established based on differences between the financial statement bases of assets and liabilities and the tax bases of those same assets and liabilities, using the currently enacted statutory tax rates. Deferred income tax expense is measured by the year-to-year change in the net deferred tax asset or liability, except for certain changes in deferred tax amounts that affect stockholders' equity and do not impact federal income tax expense. The Company performs a quarterly review of its tax positions and makes a determination whether it is more likely than not that the tax position will be sustained upon examination. If, based on this review, it appears not more likely than not that the position will be sustained, the Company will calculate any unrecognized tax benefits and calculate any interest and penalties. At December 31, 2018 , 2017 , and 2016 the Company did no t recognize any liability for unrecognized tax benefits. In addition, we have not accrued for interest and penalties related to unrecognized tax benefits. However, if interest and penalties would need to be accrued related to unrecognized tax benefits, such amounts would be recognized as a component of federal income tax expense. We file a consolidated federal income tax return. We also file income tax returns in various state jurisdictions. We are no longer subject to federal or state income tax examination for years before 2015. Stock-Based Compensation We currently have two equity compensation plans. One plan allows us to grant restricted and unrestricted stock, stock appreciation rights, incentive stock options, and non-qualified stock options to employees. The other plan allows us to grant restricted and non-qualified stock options to non-employee directors. We utilize the Black-Scholes option pricing method to establish the fair value of non-qualified stock options granted under our equity compensation plans. Our determination of the fair value of stock options on the date of grant using this option-pricing model is affected by our stock price, as well as assumptions regarding a number of complex and subjective variables, which include the expected volatility in our stock price, the expected term of the award, the expected dividends to be paid over the term of the award and the expected risk-free interest rate. Any changes in these assumptions may materially affect the estimated fair value of the award. For our restricted and unrestricted stock awards, we utilize the fair value of our common stock on the date of grant to establish the fair value of the award. Refer to Note 9 "Stock-Based Compensation" for further discussion. Comprehensive Income Comprehensive income includes all changes in stockholders' equity during a period except those resulting from investments by and dividends to stockholders. Subsequent Events In the preparation of the accompanying financial statements, the Company has evaluated all material subsequent events or transactions that occurred after the balance sheet date through the date on which the financial statements were issued for potential recognition or disclosure in the Company's financial statements. Recently Issued Accounting Standards Accounting Standards Adopted in 2018 Revenue Recognition In May 2014, the FASB issued comprehensive new guidance on revenue recognition which supersedes nearly all existing revenue recognition guidance under GAAP. The new guidance requires a company to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The standard creates a five-step model that requires companies to exercise judgment when considering the terms of the contract(s) and all relevant facts and circumstances. Insurance contracts are not within the scope of this new guidance. The new guidance is effective for annual and interim periods beginning after December 15, 2017. The Company adopted the guidance as of January 1, 2018. The adoption of the new guidance had no impact on the Company's reporting and disclosure of net premiums earned from insurance contracts, net investment income or net realized gains and losses, as these revenue streams are not within the scope of this new guidance. The remaining revenue streams are immaterial and not impacted by the new standard. Financial Instruments In January 2016, the FASB issued guidance updating certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. The amendments in this update supersede the guidance to classify equity securities with readily determinable fair values into different categories (for example, trading or available-for-sale) and require equity securities to be measured at fair value with changes in the fair value recognized through net income. The new guidance also simplifies the impairment process for equity investments without readily determinable fair values. The new guidance is effective for annual periods beginning after December 15, 2017 and interim periods within those years. The Company adopted the new guidance as of January 1, 2018. The adoption of the new guidance resulted in a reclassification from accumulated other comprehensive income to retained earnings of $191,244 after tax, which is equal to the amount of net unrealized gains and losses on available-for-sale equity securities on January 1, 2018. Also, in the period ended December 31, 2018, the Company recognized an after-tax net realized investment loss from continuing operations of $17,375 in net income from the change in value of equity securities in accordance with the adoption of this new accounting guidance. Statement of Cash Flows - Classification of Certain Cash Receipts and Payments In August 2016, the FASB issued an update that clarifies the classification of certain cash receipts and payments in the Statement of Cash Flows. The update addresses eight existing cash flow issues by clarifying the correct classification to establish uniformity in practice. The updated guidance is effective for annual periods beginning after December 15, 2017 and interim periods within those years. The Company adopted the new guidance as of January 1, 2018. The adoption had no impact on the Company's financial position and results of operations. Defined Benefit Retirement Plan Cost In March 2017, the FASB issued guidance on the presentation of net periodic benefit costs of defined benefit retirement benefit plans in the Statements of Income. The new guidance requires the service cost component of net periodic benefit cost of defined benefit plans to be presented in the same line in the Statements of Income as other employee compensation expenses. Also, under the new guidance, the service cost component of the net periodic benefit costs will be the only portion of costs subject to be capitalized in assets. The new guidance is effective for annual periods beginning after December 15, 2017 and interim periods within those years. The Company adopted the new guidance as of January 1, 2018. The adoption of the new guidance resulted in a change in the capitalization of deferred acquisition costs to only include the pension and post retirement service costs in place of the total net periodic benefit costs. The adoption had an immaterial impact on the Company's financial position and results of operations. Additionally, the adoption did not impact the Company's presentation in the Statements of Income as all net periodic benefit costs and employee compensation expenses are included within the same category in the Statements of Income. Share-Based Payments In May 2017, the FASB issued new guidance which clarifies and addresses the diversity in practice when there is a change in the terms of a share-based payment award. The updated guidance clarifies when to use modification accounting when there is a change in the terms of a share-based payment and provides three conditions where modification accounting should not be applied. The new guidance is effective for annual and interim periods beginning after December 15, 2017. The Company adopted the new guidance as of January 1, 2018. The adoption had no impact on the Company's financial position and results of operations. Pending Adoption of Accounting Standards Intangibles - Other Internal Use Software In August 2018, the FASB issued guidance to align the requirements for capitalizing implementation costs incurred in a cloud computing hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The guidance requires the Company to determine which implementation costs to capitalize as an asset related to the service contract and which costs to expense. The new guidance is effective for annual and interim periods beginning after December 15, 2019. The Company will adopt the new guidance as of January 1, 2020. Management currently believes that the adoption will not have an impact on the Company's financial position or results of operations. Leases In February 2016, the FASB issued guidance on the accounting for leases. The new guidance requires lessees to place a right-of-use asset and a lease liability on their balance sheets. The lease liability will be based on the present value of the future lease payments and the right-of-use asset will be based on the liability. Expenses will be recognized on the income statement in a similar manner as previous methods. The new guidance also requires companies to classify all leases as operating leases or financing leases. We believe all of our leases will be classified as operating leases. The new guidance is effective for annual periods beginning after December 15, 2018 and interim periods within those years. The Company will adopt the new guidance under a modified retrospective transition approach using the package of practical expedients and the Company will not adopt the hindsight practical expedient as of January 1, 2019. We expect to use the accounting standard adoption date as our date of initial application. The Company has an inventory of its operating leases and has calculated the total undiscounted future minimum lease payments, which are disclosed in Note 13 "Lease Commitments" of this report. The Company estimates the present value of future minimum lease payments at December 31, 2018 is $20.1 million , which represents less than 1.0 percent of the Company's total assets at December 31, 2018. The Company will record this amount as a lease liability on their Balance Sheets on January 1, 2019 and an estimated right-of-use asset of $19.7 million . The Company used their incremental borrowing rate of their credit facility described in Note 14 "Credit Facility" of this Form 10-K, as the discount rate for calculating the present value of the future minimum lease payments where appropriate. For leases that existed prior to the date of initial application or have terms which are not similar to the terms of the credit facility, the Company has elected to use the remaining lease term as of the date of initial application to measure its incremental borrowing rate. In this case, the incremental borrowing rate will be based on current industry borrowing rates for similar Companies with similar ratings. The Company has a small inventory of property leases for which the Company is the lessor. For these leases, the Company has made the election not to evaluate whether certain sales taxes are the primary obligation of the lessor as owner of the leased asset. The Company has reviewed and updated its processes and controls under the new guidance. Management currently believes that the adoption will not have a significant impact on the Company's financial position or results of operations. Financial Instruments - Callable Debt Securities In March 2016, the FASB issued an update to amend the amortization period for certain purchased callable debt securities held at a premium. The update requires the premium to be amortized to the earliest call date. The update doesn’t change the accounting for securities held at a discount, which will continue to be amortized to maturity. The new guidance is effective for annual periods beginning after December 15, 2018 and interim periods beginning after December 15, 2018. The Company will adopt the new guidance as of January 1, 2019. The adoption will have not have a material impact on the Company's financial position and results of operations. Income Taxes - Intra-entity Transfers In October 2016, the FASB issued new guidance on the income tax treatment of intra-entity transfers. The new guidance replaces the current guidance which prohibits the recognition of current and deferred income taxes of intra-entity transfers until the asset is sold externally. Under the new guidance, the exemption is eliminated and income taxes will be recognized on transfers of intra-entity assets. The new guidance is effective for annual periods beginning after December 15, 2018 and interim periods beginning after December 15, 2019. The Company will adopt the new guidance as of January 1, 2019. Management currently believes that the adoption will have an immaterial impact on the Company's financial position and results |
SUMMARY OF INVESTMENTS
SUMMARY OF INVESTMENTS | 12 Months Ended |
Dec. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
SUMMARY OF INVESTMENTS | SUMMARY OF INVESTMENTS Fair Value of Investments The table that follows is a reconciliation of the amortized cost (cost for equity securities) to fair value of investments in held-to-maturity and available-for-sale fixed maturity and available-for-sale equity securities, presented on a consolidated basis, including both continuing and discontinued operations as of December 31, 2018 and 2017 . December 31, 2018 Type of Investment Cost or Amortized Cost Gross Unrealized Appreciation Gross Unrealized Depreciation Fair Value AVAILABLE-FOR-SALE Fixed maturities Bonds U.S. Treasury $ 27,632 $ 6 $ 220 $ 27,418 U.S. government agency 215,535 896 1,749 214,682 States, municipalities and political subdivisions General obligations: Midwest 94,806 1,091 685 95,212 Northeast 37,326 432 103 37,655 South 114,710 754 1,553 113,911 West 107,787 1,229 1,175 107,841 Special revenue: Midwest 140,025 1,609 870 140,764 Northeast 62,737 452 1,241 61,948 South 237,848 1,669 3,708 235,809 West 143,829 1,294 2,203 142,920 Foreign bonds 9,698 31 13 9,716 Public utilities 56,808 274 1,023 56,059 Corporate bonds Energy 28,909 43 304 28,648 Industrials 53,867 124 906 53,085 Consumer goods and services 54,323 142 819 53,646 Health care 16,721 42 105 16,658 Technology, media and telecommunications 26,819 35 678 26,176 Financial services 81,286 238 2,175 79,349 Mortgage-backed securities 7,642 14 232 7,424 Collateralized mortgage obligations Government national mortgage association 78,055 380 1,734 76,701 Federal home loan mortgage corporation 108,403 524 1,304 107,623 Federal national mortgage association 53,267 213 732 52,748 Asset-backed securities 3,256 352 113 3,495 Total Available-For-Sale Fixed Maturities $ 1,761,289 $ 11,844 $ 23,645 $ 1,749,488 December 31, 2017 Type of Investment Cost or Amortized Cost Gross Unrealized Appreciation Gross Unrealized Depreciation Fair Value HELD-TO-MATURITY Fixed maturities Bonds Corporate bonds - financial services $ 150 $ — $ — $ 150 Mortgage-backed securities 34 — — 34 Total Held-to-Maturity Fixed Maturities $ 184 $ — $ — $ 184 AVAILABLE-FOR-SALE Fixed maturities Bonds U.S. Treasury $ 17,073 $ 4 $ 186 $ 16,891 U.S. government agency 121,574 1,311 717 122,168 States, municipalities and political subdivisions General obligations: Midwest 107,689 2,446 439 109,696 Northeast 47,477 1,174 10 48,641 South 139,870 2,462 813 141,519 West 111,123 2,351 463 113,011 Special revenue: Midwest 155,475 3,620 351 158,744 Northeast 79,028 1,351 619 79,760 South 260,145 5,218 1,851 263,512 West 156,576 2,929 1,198 158,307 Foreign bonds 51,361 1,441 49 52,753 Public utilities 206,028 3,386 270 209,144 Corporate bonds Energy 93,191 1,972 110 95,053 Industrials 218,067 3,881 241 221,707 Consumer goods and services 183,253 3,498 494 186,257 Health care 74,125 1,312 29 75,408 Technology, media and telecommunications 146,853 2,376 250 148,979 Financial services 277,824 5,769 442 283,151 Mortgage-backed securities 13,828 101 238 13,691 Collateralized mortgage obligations Government national mortgage association 157,836 1,921 2,274 157,483 Federal home loan mortgage corporation 201,320 1,879 4,047 199,152 Federal national mortgage association 104,903 1,703 1,174 105,432 Asset-backed securities 4,282 362 8 4,636 Total Available-For-Sale Fixed Maturities $ 2,928,901 $ 52,467 $ 16,273 $ 2,965,095 The following table is a reconciliation of the amortized cost (cost for equity securities) to fair value of investments in held-to-maturity and available-for-sale fixed maturity and equity securities for continuing and discontinued operations by investment type at December 31, 2017. December 31, 2017 Type of Investment Cost or Amortized Cost Gross Unrealized Appreciation Gross Unrealized Depreciation Fair Value HELD-TO-MATURITY Fixed maturities: Continuing operations $ 150 $ — $ — $ 150 Discontinued operations 34 — — 34 Total Held-to-Maturity Fixed Maturities $ 184 $ — $ — $ 184 AVAILABLE-FOR-SALE Fixed maturities: Continuing operations $ 1,516,610 $ 27,412 $ 8,952 $ 1,535,070 Discontinued operations 1,412,291 25,055 7,321 1,430,025 Total Available-for-Sale Fixed Maturities $ 2,928,901 $ 52,467 $ 16,273 $ 2,965,095 Maturities The amortized cost and fair value of held-to-maturity, available-for-sale and trading fixed maturity securities at December 31, 2018 , by contractual maturity, are shown in the following table. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Asset-backed securities, mortgage-backed securities and collateralized mortgage obligations may be subject to prepayment risk and are therefore not categorized by contractual maturity. Maturities Available-For-Sale Trading December 31, 2018 Amortized Cost Fair Value Amortized Cost Fair Value Due in one year or less $ 48,331 $ 48,492 $ 4,408 $ 5,232 Due after one year through five years 225,816 226,069 5,019 5,872 Due after five years through 10 years 544,551 542,662 — — Due after 10 years 691,968 684,274 1,850 2,136 Asset-backed securities 3,256 3,495 — — Mortgage-backed securities 7,642 7,424 — — Collateralized mortgage obligations 239,725 237,072 — — $ 1,761,289 $ 1,749,488 $ 11,277 $ 13,240 Net Realized Investment Gains and Losses Net realized gains (losses) on disposition of investments are computed using the specific identification method and are included in the computation of net income. A summary of net realized investment gains (losses) for 2018 , 2017 and 2016 , is as follows: 2018 2017 2016 Net realized investment gains (losses) from continuing operations Fixed maturities: Available-for-sale $ (254 ) $ 829 $ 1,004 Trading securities Change in fair value (296 ) 924 189 Sales 1,226 244 931 Equity securities (20,292 ) 1,942 2,654 Mortgage loans (46 ) — — Cash equivalents — — 169 Real estate (517 ) 116 — Total net realized investment gains (losses) from continuing operations $ (20,179 ) $ 4,055 $ 4,947 Total net realized investment gains (losses) from discontinued operations (1,057 ) 4,008 1,156 Total net realized investment gains (losses) $ (21,236 ) $ 8,063 $ 6,103 The proceeds and gross realized gains (losses) on the sale of available-for-sale fixed maturity securities from continuing operations for 2018 , 2017 and 2016 , are as follows: 2018 2017 2016 Proceeds from sales $ 132,250 $ 7,404 $ 1,968 Gross realized gains 140 1,046 920 Gross realized losses 517 (20 ) — The proceeds and gross realized gains (losses) on the sale of available-for-sale fixed maturity securities from discontinued operations for 2018 , 2017 and 2016 , are as follows: 2018 2017 2016 Proceeds from sales $ — $ 7,315 $ 12,354 Gross realized gains — 1,264 65 Gross realized losses — (78 ) (639 ) There were no sales of held-to-maturity securities in 2018 , 2017 and 2016 . Our investment portfolio includes trading securities with embedded derivatives. These securities are primarily convertible securities which are recorded at fair value. Income or loss, including the change in the fair value of these trading securities, is recognized currently in earnings as a component of net realized investment gains and losses. Our portfolio of trading securities had a fair value of $13,240 and $16,842 at December 31, 2018 and 2017 , respectively. Net Investment Income Net investment income for the years ended December 31, 2018 , 2017 and 2016 , is comprised of the following: Years Ended December 31, 2018 2017 2016 Investment income from continuing operations: Interest on fixed maturities $ 51,356 $ 44,784 $ 43,147 Dividends on equity securities 7,731 7,108 6,448 Income on other long-term investments Investment income 8,383 6,870 1,200 Change in value (1) (10,116 ) (2,812 ) 10,178 Interest on mortgage loans 412 — — Interest on short-term investments 606 120 47 Interest on cash and cash equivalents 1,875 1,125 352 Other 307 300 422 Total investment income from continuing operations $ 60,554 $ 57,495 $ 61,794 Less investment expenses 7,660 6,305 6,510 Net investment income from continuing operations $ 52,894 $ 51,190 $ 55,284 Net investment income from discontinued operations $ 12,663 $ 49,720 $ 51,538 Net investment income $ 65,557 $ 100,910 $ 106,822 (1) Represents the change in value of our interests in limited liability partnerships that are recorded on the equity method of accounting. Funding Commitment At December 31, 2018 , pursuant to an agreement with our limited liability partnership investments, we are contractually committed to make capital contributions up to $22,301 upon request of the partnerships through July 31, 2028. Unrealized Appreciation and Depreciation A summary of changes in net unrealized investment appreciation for 2018 , 2017 and 2016 , is as follows for continuing operations and discontinued operations: 2018 2017 2016 Change in net unrealized investment appreciation Available-for-sale fixed maturities $ (57,475 ) $ 25,573 $ (21,271 ) Available-for-sale equity securities — 40,168 34,179 Deferred policy acquisition costs 7,274 119 (4,410 ) Income tax effect 10,543 (21,545 ) (2,975 ) Cumulative change in accounting principles (191,244 ) — — Accumulated effect of change in enacted tax rate — 36,658 — Net unrealized investment depreciation of discontinued operations, sold 6,714 — — Total change in net unrealized investment appreciation (depreciation), net of tax $ (224,188 ) $ 80,973 $ 5,523 We continually monitor the difference between our cost basis and the estimated fair value of our investments. Our accounting policy for impairment recognition requires other-than-temporary impairment ("OTTI") charges to be recorded when we determine that it is more likely than not that we will be unable to collect all amounts due according to the contractual terms of the fixed maturity security. Impairment charges on investments are recorded based on the fair value of the investments at the measurement date or based on the value calculated using a discounted cash flow model. Credit-related impairments on fixed maturity securities that we do not plan to sell, and for which we are not more likely than not to be required to sell, are recognized in net income. Any non-credit related impairment is recognized as a component of other comprehensive income. Factors considered in evaluating whether a decline in value is other-than-temporary include: the length of time and the extent to which fair value has been less than cost; the financial condition and near-term prospects of the issuer; our intention to hold the investment; and the likelihood that we will be required to sell the investment. The tables on the following pages summarize our fixed maturity and equity securities that were in an unrealized loss position at December 31, 2018 and 2017 for continuing operations and discontinued operations. The securities are presented by the length of time they have been continuously in an unrealized loss position. It is possible that we could recognize OTTI charges in future periods on securities held at December 31, 2018 if future events or information cause us to determine that a decline in fair value is other-than-temporary. We have evaluated the near-term prospects of the issuers of our fixed maturity securities in relation to the severity and duration of the unrealized loss and determined that these losses did not warrant the recognition of an OTTI charge in 2018 , 2017 or 2016 . All fixed maturity securities in the investment portfolio continue to pay the expected coupon payments under the contractual terms of the securities. We believe the unrealized depreciation in value of other securities in our fixed maturity portfolio is primarily attributable to changes in market interest rates and not the credit quality of the issuer. We have no intention to sell and it is more likely than not that we will not be required to sell these securities until the fair value recovers to at least equal to our cost basis or the securities mature. December 31, 2018 Less than 12 months 12 months or longer Total Type of Investment Number Fair Gross Unrealized Number Fair Gross Unrealized Depreciation Fair Gross Unrealized Depreciation AVAILABLE-FOR-SALE Fixed maturities Bonds U.S. Treasury 1 $ 8,018 $ 7 5 $ 14,645 $ 213 $ 22,663 $ 220 U.S. government agency 4 17,907 81 17 80,696 1,668 98,603 1,749 States, municipalities and political subdivisions General obligations Midwest 2 2,939 5 7 23,749 680 26,688 685 Northeast — — — 3 12,110 103 12,110 103 South 1 778 2 22 50,174 1,551 50,952 1,553 West 1 1,203 5 16 48,499 1,170 49,702 1,175 Special revenue Midwest 4 3,892 8 19 43,854 862 47,746 870 Northeast — — — 14 37,629 1,241 37,629 1,241 South 4 4,298 30 45 107,016 3,678 111,314 3,708 West 4 11,115 32 28 69,667 2,171 80,782 2,203 Foreign bonds 1 2,984 13 — — — 2,984 13 Public utilities 12 25,781 552 8 17,253 471 43,034 1,023 Corporate bonds Energy 7 12,556 148 2 4,099 156 16,655 304 Industrials 9 21,970 397 4 11,040 509 33,010 906 Consumer goods and services 14 30,399 527 5 9,554 292 39,953 819 Health care 3 6,203 97 1 345 8 6,548 105 Technology, media and telecommunications 6 12,638 288 5 9,619 390 22,257 678 Financial services 13 30,177 650 13 32,855 1,525 63,032 2,175 Mortgage-backed securities 22 1,539 34 22 4,166 198 5,705 232 Collateralized mortgage obligations Government national mortgage association 2 3,797 55 22 44,690 1,679 48,487 1,734 Federal home loan mortgage corporation 3 4,541 20 18 38,189 1,284 42,730 1,304 Federal national mortgage association 4 2,107 3 15 38,986 729 41,093 732 Asset-backed securities 1 2,829 113 — — — 2,829 113 Total Available-for-Sale Fixed Maturities 118 $ 207,671 $ 3,067 291 $ 698,835 $ 20,578 $ 906,506 $ 23,645 December 31, 2017 Less than 12 months 12 months or longer Total Type of Investment Number Fair Gross Unrealized Depreciation Number Fair Gross Unrealized Depreciation Fair Gross Unrealized Depreciation AVAILABLE-FOR-SALE Fixed maturities Bonds U.S. Treasury 5 $ 10,370 $ 67 2 $ 5,765 $ 119 $ 16,135 $ 186 U.S. government agency 11 64,842 390 5 19,372 327 84,214 717 States, municipalities and political subdivisions General obligations Midwest 2 2,177 8 3 19,729 431 21,906 439 Northeast — — — 1 3,644 10 3,644 10 South 3 7,959 32 11 29,545 781 37,504 813 West 2 5,944 18 8 25,755 445 31,699 463 Special revenue Midwest 2 3,486 15 7 19,130 336 22,616 351 Northeast 1 4,471 37 11 28,476 582 32,947 619 South 8 7,749 107 27 69,917 1,744 77,666 1,851 West 3 5,424 16 22 56,753 1,182 62,177 1,198 Foreign bonds 1 857 49 — — — 857 49 Public utilities 8 19,186 79 5 8,446 191 27,632 270 Corporate bonds Energy 1 2,236 13 1 1,606 97 3,842 110 Industrials 10 27,773 146 2 4,275 95 32,048 241 Consumer goods and services 14 32,781 248 3 6,813 246 39,594 494 Health care 4 9,947 29 — — — 9,947 29 Technology, media and telecommunications 12 35,319 122 3 10,413 128 45,732 250 Financial services 22 50,144 256 4 11,389 186 61,533 442 Mortgage-backed securities 10 2,458 18 10 6,641 220 9,099 238 Collateralized mortgage obligations Government national mortgage association 20 49,764 629 17 46,969 1,645 96,733 2,274 Federal home loan mortgage corporation 11 37,543 577 20 75,679 3,470 113,222 4,047 Federal national mortgage association 11 31,958 342 11 20,123 832 52,081 1,174 Asset-backed securities 1 992 8 — — — 992 8 Total Available-for-Sale Fixed Maturities 162 $ 413,380 $ 3,206 173 $ 470,440 $ 13,067 $ 883,820 $ 16,273 The following tables are a reconciliation for continuing and discontinued operations of our total fixed maturity and equity securities that were in an unrealized loss position at December 31, 2017 . The securities are presented by the length of time they have been continuously in an unrealized loss position: December 31, 2017 Less than 12 months 12 months or longer Total Type of Investment Number Fair Gross Unrealized Number Fair Gross Unrealized Depreciation Fair Gross Unrealized Depreciation AVAILABLE-FOR-SALE Fixed maturities: Continuing operations 88 $ 232,489 $ 1,791 112 $ 302,815 $ 7,161 $ 535,304 $ 8,952 Discontinued operations 74 180,891 1,415 61 167,625 5,906 348,516 7,321 Total Available-for-Sale Fixed Maturities 162 $ 413,380 $ 3,206 173 $ 470,440 $ 13,067 $ 883,820 $ 16,273 |
FAIR VALUE OF FINANCIAL INSTRUM
FAIR VALUE OF FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | FAIR VALUE OF FINANCIAL INSTRUMENTS Current accounting guidance on fair value measurements includes the application of a fair value hierarchy that requires us to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Our financial instruments that are recorded at fair value are categorized into a three-level hierarchy, which is based upon the priority of the inputs to the valuation technique. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets (i.e., Level 1) and the lowest priority to unobservable inputs (i.e., Level 3). If the inputs used to measure fair value fall within different levels of the hierarchy, the category level is based on the lowest priority level input that is significant to the fair value measurement of the financial instrument. Financial instruments recorded at fair value are categorized in the fair value hierarchy as follows: • Level 1 : Valuations are based on unadjusted quoted prices in active markets for identical financial instruments that we have the ability to access. • Level 2 : Valuations are based on quoted prices for similar financial instruments, other than quoted prices included in Level 1, in markets that are not active or on inputs that are observable either directly or indirectly for the full term of the financial instrument. • Level 3 : Valuations are based on pricing or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement of the financial instrument. Such inputs may reflect management's own assumptions about the assumptions a market participant would use in pricing the financial instrument. We review our fair value hierarchy categorizations on a quarterly basis at which time the classification of certain financial instruments may change if the input observations have changed. Transfers between levels, if any, are recorded as of the beginning of the reporting period. To determine the fair value of the majority of our investments, we utilize prices obtained from independent, nationally recognized pricing services. We obtain one price for each security. When the pricing services cannot provide a determination of fair value for a specific security, we obtain non-binding price quotes from broker-dealers with whom we have had several years experience and who have demonstrated knowledge of the subject security. We request and utilize one broker quote per security. In order to determine the proper classification in the fair value hierarchy for each security where the price is obtained from an independent pricing service, we obtain and evaluate the vendors' pricing procedures and inputs used to price the security, which include unadjusted quoted market prices for identical securities, such as a New York Stock Exchange closing price, and quoted prices for identical securities in markets that are not active. For fixed maturity securities, an evaluation of interest rates and yield curves observable at commonly quoted intervals, volatility, prepayment speeds, credit risks and default rates may also be performed. We have determined that these processes and inputs result in fair values and classifications consistent with the applicable accounting guidance on fair value measurements. When possible, we use quoted market prices to determine the fair value of fixed maturities, equity securities, trading securities and short-term investments. When quoted market prices do not exist, we base estimates of fair value on market information obtained from independent pricing services and brokers or on valuation techniques that are both unobservable and significant to the overall fair value measurement of the financial instrument. Such inputs may reflect management's own assumptions about the assumptions a market participant would use in pricing the financial instrument. Our valuation techniques are discussed in more detail throughout this section. The fair value of our mortgage loans is determined by modeling performed by us based on the stated principal and coupon payments provided for in the loan agreements. These cash flows are then discounted using an appropriate risk-adjusted discount rate to determine the loan's fair value, which is a Level 3 fair value measurement. The fair value of our policy loans is equivalent to carrying value, which is a reasonable estimate of fair value and is classified as Level 2. We do not make policy loans for amounts in excess of the cash surrender value of the related policy. In all instances, the policy loans are fully collateralized by the related liability for future policy benefits for traditional insurance policies or by the policyholders' account balance for non-traditional policies. Our other long-term investments consist primarily of our interests in limited liability partnerships that are recorded on the equity method of accounting. The fair value of the partnerships is obtained from the fund managers, which is based on the fair value of the underlying investments held in the partnerships. In management's opinion, these values represent a reasonable estimate of fair value. We have not adjusted the net asset value provided by the fund managers. For cash and cash equivalents and accrued investment income, carrying value is a reasonable estimate of fair value due to the short-term nature of these financial instruments. The Company formed a rabbi trust in 2014 to fund obligations under the United Fire & Casualty Company Non-qualified Deferred Compensation Plan and United Fire Group Supplemental Executive Retirement and Deferral Plan (collectively the "Executive Retirement Plans"). Within the rabbi trust, corporate-owned life insurance ("COLI") policies are utilized as an investment vehicle and source of funding for the Company's Executive Retirement Plans. The COLI policies invest in mutual funds, which are priced daily by independent sources. As of December 31, 2018 , the cash surrender value of the COLI policies was $4,907 , which is equal to the fair value measured using Level 2 inputs, based on the underlying assets of the COLI policies, and is included in other assets in the Consolidated Balance Sheets. Policy reserves are developed and recorded for deferred annuities, which is an interest-sensitive product, and income annuities. The fair value of the reserve liability for these annuity products is based upon an estimate of the discounted pretax cash flows that are forecast for the underlying business, which is a Level 3 fair value measurement. We base the discount rate on the current U.S. Treasury spot yield curve, which is then risk-adjusted for nonperformance risk and, for interest-sensitive business and market risk factors. The risk-adjusted discount rate is developed using interest rates that are available in the market and representative of the risks applicable to the underlying business. A summary of the carrying value and estimated fair value of our financial instruments from continuing operations at December 31, 2018 and 2017 is as follows: December 31, 2018 December 31, 2017 Fair Value Carrying Value Fair Value Carrying Value Assets Investments Fixed maturities: Held-to-maturity securities $ — $ — $ 150 $ 150 Available-for-sale securities 1,749,488 1,749,488 1,535,070 1,535,070 Trading securities 13,240 13,240 16,842 16,842 Equity securities: 248,361 248,361 287,344 287,344 Mortgage loans 26,021 25,782 — — Other long-term investments 37,077 37,077 49,352 49,352 Short-term investments 175 175 175 175 Cash and cash equivalents 64,454 64,454 95,562 95,562 Corporate-owned life insurance 4,907 4,907 4,029 4,029 A summary of the carrying value and estimated fair value of our financial instruments from discontinued operations at December 31, 2018 and 2017 is as follows: December 31, 2018 December 31, 2017 Fair Value Carrying Value Fair Value Carrying Value Assets Investments Fixed maturities: Held-to-maturity securities $ — $ — $ 34 $ 34 Available-for-sale securities — — 1,430,025 1,430,025 Equity securities: Available-for-sale securities — — 23,653 23,653 Mortgage loans — — 3,594 3,435 Policy loans — — 5,815 5,815 Other long-term investments — — 16,437 16,437 Cash and cash equivalents — — 15,851 15,851 Liabilities Policy reserves Annuity (accumulations) (1) $ — $ — $ 591,702 $ 611,866 Annuity (benefit payments) — — 147,038 93,560 The following tables present the categorization for our financial instruments measured at fair value on a recurring basis. The tables include financial instruments from both continuing and discontinued operations at December 31, 2018 and 2017 : Fair Value Measurements Description December 31, 2018 Level 1 Level 2 Level 3 AVAILABLE-FOR-SALE Fixed maturities Bonds U.S. Treasury $ 27,418 $ — $ 27,418 $ — U.S. government agency 214,682 — 214,682 — States, municipalities and political subdivisions General obligations Midwest 95,212 — 95,212 — Northeast 37,655 — 37,655 — South 113,911 — 113,911 — West 107,841 — 107,841 — Special revenue Midwest 140,764 — 140,764 — Northeast 61,948 — 61,948 — South 235,809 — 235,809 — West 142,920 — 142,920 — Foreign bonds 9,716 — 9,716 — Public utilities 56,059 — 56,059 — Corporate bonds Energy 28,648 — 28,648 — Industrials 53,085 — 53,085 — Consumer goods and services 53,646 — 53,646 — Health care 16,658 — 16,658 — Technology, media and telecommunications 26,176 — 26,176 — Financial services 79,349 — 79,099 250 Mortgage-backed securities 7,424 — 7,424 — Collateralized mortgage obligations Government national mortgage association 76,701 — 76,701 — Federal home loan mortgage corporation 107,623 — 107,623 — Federal national mortgage association 52,748 — 52,748 — Asset-backed securities 3,495 — 2,829 666 Total Available-For-Sale Fixed Maturities $ 1,749,488 $ — $ 1,748,572 $ 916 TRADING Fixed maturities Bonds Corporate bonds Industrials $ 397 $ — $ 397 $ — Consumer goods and services 1,599 — 1,599 — Health care 3,236 — 3,236 — Technology, media and telecommunications 3,028 — 3,028 — Financial services 2,231 — 2,231 — Redeemable preferred stocks 2,749 2,749 — — Total Trading Securities $ 13,240 $ 2,749 $ 10,491 $ — Equity securities Public utilities 15,949 15,949 — — Energy 10,975 10,975 — — Industrials 53,536 53,536 — — Consumer goods and services 24,465 24,465 — — Health care 22,286 22,286 — — Financial Services 101,555 101,555 — — Technology, media and telecommunications 13,944 13,944 — — Nonredeemable preferred stocks 5,651 5,056 — 595 Total Equity Securities $ 248,361 $ 247,766 $ — $ 595 Short-Term Investments $ 175 $ 175 $ — $ — Money Market Accounts $ 3,275 $ 3,275 $ — $ — Corporate-Owned Life Insurance $ 4,907 $ — $ 4,907 $ — Total Assets Measured at Fair Value $ 2,019,446 $ 253,965 $ 1,763,970 $ 1,511 Fair Value Measurements Description December 31, 2017 Level 1 Level 2 Level 3 AVAILABLE-FOR-SALE Fixed maturities Bonds U.S. Treasury $ 16,891 $ — $ 16,891 $ — U.S. government agency 122,168 — 122,168 — States, municipalities and political subdivisions General obligations Midwest 109,696 — 109,696 — Northeast 48,641 — 48,641 — South 141,519 — 141,519 — West 113,011 — 113,011 — Special revenue Midwest 158,744 — 158,744 — Northeast 79,760 — 79,760 — South 263,512 — 263,512 — West 158,307 — 158,307 — Foreign bonds 52,753 — 52,753 — Public utilities 209,144 — 209,144 — Corporate bonds Energy 95,053 — 95,053 — Industrials 221,707 — 221,707 — Consumer goods and services 186,257 — 185,589 668 Health care 75,408 — 75,408 — Technology, media and telecommunications 148,979 — 148,979 — Financial services 283,151 — 275,474 7,677 Mortgage-backed securities 13,691 — 13,691 — Collateralized mortgage obligations Government national mortgage association 157,483 — 157,483 — Federal home loan mortgage corporation 199,152 — 199,152 — Federal national mortgage association 105,432 — 105,432 — Asset-backed securities 4,636 — 3,989 647 Total Available-For-Sale Fixed Maturities $ 2,965,095 $ — $ 2,956,103 $ 8,992 TRADING Fixed maturities Bonds Corporate bonds Industrials $ 2,220 $ — $ 2,220 $ — Consumer goods and services 1,535 — 1,535 — Health care 3,741 — 3,741 — Technology, media and telecommunications 1,221 — 1,221 — Financial services 5,566 — 5,566 — Redeemable preferred stocks 2,559 2,559 — — Total Trading Securities $ 16,842 $ 2,559 $ 14,283 $ — Equity securities Public utilities $ 23,313 $ 23,313 $ — $ — Energy 14,755 14,755 — — Industrials 67,508 67,506 2 — Consumer goods and services 27,002 27,002 — — Health care 40,428 40,428 — — Financial Services 116,645 116,645 — — Technology, media and telecommunications 17,508 17,508 — — Nonredeemable preferred stocks 3,838 2,956 — 882 Total Equity Securities $ 310,997 $ 310,113 $ 2 $ 882 Short-Term Investments $ 175 $ 175 $ — $ — Money Market Accounts $ 16,824 $ 16,824 $ — $ — Corporate-Owned Life Insurance $ 4,029 $ — $ 4,029 $ — Total Assets Measured at Fair Value $ 3,313,962 $ 329,671 $ 2,974,417 $ 9,874 The following tables are a reconciliation for both continuing and discontinued operations of the presentation of the categorization for our financial instruments measured at fair value on a recurring basis at December 31, 2017 : December 31, 2017 Fair Value Measurements Description Total Level 1 Level 2 Level 3 AVAILABLE-FOR-SALE Continuing operations $ 1,535,070 $ — $ 1,534,323 $ 747 Discontinued operations 1,430,025 — 1,421,780 8,245 Total Available-for-Sale $ 2,965,095 $ — $ 2,956,103 $ 8,992 TRADING Continuing operations $ 16,842 $ 2,559 $ 14,283 $ — Discontinued operations — — — — Total Trading Securities $ 16,842 $ 2,559 $ 14,283 $ — EQUITY SECURITIES: Continuing operations $ 287,344 $ 286,462 $ — $ 882 Discontinued operations 23,653 23,651 2 — Equity securities $ 310,997 $ 310,113 $ 2 $ 882 SHORT-TERM INVESTMENTS Continuing operations $ 175 $ 175 $ — $ — Discontinued operations — — — — Short-Term Investments $ 175 $ 175 $ — $ — MONEY MARKET ACCOUNTS Continuing operations $ 6,147 $ 6,147 $ — $ — Discontinued operations 10,677 10,677 — — Money Market Accounts $ 16,824 $ 16,824 $ — $ — CORPORATE-OWNED LIFE INSURANCE Continuing operations $ 4,029 $ — $ 4,029 $ — Discontinued operations — — — — Corporate-Owned Life Insurance $ 4,029 $ — $ 4,029 $ — Total Assets Measured at Fair Value $ 3,313,962 $ 329,671 $ 2,974,417 $ 9,874 The fair value of securities that are categorized as Level 1 is based on quoted market prices that are readily and regularly available. We use a market-based approach for valuing all of our Level 2 securities and receive them primarily from a third-party valuation service provider. Any of these securities not valued by this service provider are submitted to another third-party valuation service provider for pricing. Both service providers use a market approach to find pricing of similar financial instruments. The market inputs our service providers normally seek to value our securities include the following, listed in approximate order of priority: benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, and reference data including market research publications. The method and inputs for these securities classified as Level 2 are the same regardless of industry category, credit quality, duration, geographical concentration or economic characteristics. For our mortgage-backed securities, collateralized mortgage obligations and asset-backed securities, our service providers use additional market inputs to value these securities, including the following: new issue data, periodic payment information, monthly payment information, collateral performance and real estate analysis from third parties. Our service providers prioritize inputs based on market conditions, and not all inputs listed are available for use in the valuation process for each security on any given day. At least annually, we review the methodologies and assumptions used by our valuation service providers and verify that they are reasonable and representative of the fair value of the underlying securities held in the investment portfolio. We validate the prices obtained from independent pricing services and brokers prior to their use for reporting purposes by evaluating their reasonableness on a monthly basis. Our validation process includes a review for unusual fluctuations. Unusual fluctuations outside of our expectations are independently corroborated with additional third-party sources that use similar valuation techniques as discussed above. In addition, we also test the all securities in the portfolio and independently corroborate the valuations obtained from our third-party valuation service providers. We also perform deep dive analysis of the pricing method used by our third-party valuation service provider by selecting a random sample of securities by asset class. In our opinion, the pricing obtained at December 31, 2018 and 2017 was reasonable. For the year ended December 31, 2018 , the change in our available-for-sale securities categorized as Level 1 and Level 2 is the result of investment purchases that were made using funds held in our money market accounts, disposals and the change in unrealized gains on both fixed maturities and equity securities. During the twelve month period ended December 31, 2018 , there were no securities transferred between Level 1 and Level 2. Securities categorized as Level 3 include holdings in certain private placement fixed maturity and equity securities for which an active market does not currently exist. The fair value of our Level 3 private placement securities is determined by management relying on pricing received from our independent pricing services and brokers consistent with the process to estimate fair value for Level 2 securities. However, securities are categorized as Level 3 if these quotes cannot be corroborated by other market observable data due to the unobservable nature of the brokers’ valuation processes. If pricing cannot be obtained from these sources, which occurs on a limited basis, management will perform a discounted cash flow analysis, using an appropriate risk-adjusted discount rate, on the underlying security to estimate fair value. During the twelve month period ended December 31, 2018 and 2017 , there were no securities transferred in or out of Level 3. The following table provides a summary of the changes in fair value of our Level 3 securities, from continuing operations for 2018 : Corporate bonds Asset-backed securities Equities Total Balance at January 1, 2018 $ 100 $ 647 $ 882 $ 1,629 Unrealized gains (losses) (1) — 19 (287 ) (268 ) Purchases 150 — — 150 Balance at December 31, 2018 $ 250 $ 666 $ 595 $ 1,511 (1) Unrealized gains (losses) are recorded as a component of comprehensive income. The following table provides a summary of the changes in fair value of our Level 3 securities, from both continuing and discontinued operations for 2017 : States, municipalities and political subdivisions Corporate bonds Asset-backed securities Equities Total Balance at January 1, 2017 $ 168 $ 9,894 $ 449 $ 4,587 $ 15,098 Unrealized gains (losses) (1) (8 ) (129 ) 198 287 348 Purchases — 100 — 145 245 Disposals (160 ) (1,520 ) — (4,137 ) (5,817 ) Balance at December 31, 2017 $ — $ 8,345 $ 647 $ 882 $ 9,874 (1) Realized gains (losses) are recorded as a component of earnings, whereas unrealized gains (losses) are recorded as a component of comprehensive income. The fixed maturities reported as disposals relate to the receipt of principal on calls or sinking fund bonds, in accordance with the indentures. Commercial Mortgage Loans The following tables present the carrying value of our commercial mortgage loans and additional information at December 31, 2018 and 2017 : Commercial Mortgage Loans December 31, 2018 December 31, 2017 Loan-to-value Less than 65% $ 25,828 — Total amortized cost $ 25,828 $ — Valuation allowance (46 ) — Total mortgage loans $ 25,782 $ — Mortgage Loans by Region December 31, 2018 December 31, 2017 Carrying Value Percent of Total Carrying Value Percent of Total East North Central $ 3,244 12.6 % $ — — % Southern Atlantic 6,652 25.8 — — East South Central 4,975 19.3 — — New England 6,588 25.4 — — Middle Atlantic 4,369 16.9 — — Total mortgage loans at amortized cost $ 25,828 100.0 % $ — — % Mortgage Loans by Property Type December 31, 2018 December 31, 2017 Carrying Value Percent of Total Carrying Value Percent of Total Commercial Multifamily $ 3,244 12.6 % $ — — % Office 11,627 45.0 — — Mixed use/Other 10,957 42.4 — — Total mortgage loans at amortized cost $ 25,828 100.0 % $ — — % Mortgage Loan Valuation Allowance The commercial mortgage loans originate with an initial loan-to-value ratio to provide sufficient collateral to absorb losses should a loan be required to foreclose. Mortgage loans are evaluated on a quarterly basis for impairment on an individual basis through a monitoring process and review of key credit indicators, such as economic trends, delinquency rates, property valuations, occupancy and rental rates and loan-to-value ratios. A loan is considered impaired when the Company believes it will not collect the contractual principal and interest set forth in the contractual terms of the loan. A valuation allowance is established on each loan recognizing a loss for amounts which we believe will not be collected according to the contractual terms of the respective loan agreement. For the year end December 31, 2018 the Company had a valuation allowance of $46 |
REINSURANCE
REINSURANCE | 12 Months Ended |
Dec. 31, 2018 | |
Reinsurance Disclosures [Abstract] | |
REINSURANCE | REINSURANCE Continuing Operations - Property and Casualty Insurance Business Ceded and Assumed Reinsurance Reinsurance is a contract by which one insurer, called the reinsurer, agrees to cover, under certain defined circumstances, a portion of the losses incurred by a primary insurer if a claim is made under a policy issued by the primary insurer. Our property and casualty insurance companies follow the industry practice of reinsuring a portion of their exposure by ceding to reinsurers a portion of the premium received and a portion of the risk under the policies written. We purchase reinsurance to reduce the net liability on individual risks to predetermined limits and to protect us against catastrophic losses, such as a hurricane or tornado. We do not engage in any reinsurance transactions classified as finite risk reinsurance. We account for premiums, written and earned, and losses incurred net of reinsurance ceded. The ceding of insurance does not legally discharge us from primary liability under our policies, and we must pay the loss if the reinsurer fails to meet its obligation. We periodically monitor the financial condition of our reinsurers to confirm that they are financially stable. We believe that all of our reinsurers are in an acceptable financial condition and there were no reinsurance balances at December 31, 2018 for which collection is at risk that would result in a material impact on our Consolidated Financial Statements. The amount of reinsurance recoverable on paid losses totaled $3,779 and $2,859 at December 31, 2018 and 2017 , respectively. We also assume both property and casualty insurance from other insurance or reinsurance companies. Most of the business we have assumed is property insurance, with an emphasis on catastrophe coverage. Premiums and losses and loss settlement expenses related to our ceded and assumed business are as follows: Years Ended December 31, 2018 2017 2016 Ceded Business Ceded premiums written $ 66,800 $ 61,273 $ 57,988 Ceded premiums earned 63,487 61,305 57,996 Loss and loss settlement expenses ceded 22,317 33,303 13,278 Assumed Business Assumed premiums written $ 16,761 $ 15,179 $ 16,834 Assumed premiums earned 16,957 15,059 17,037 Loss and loss settlement expenses assumed (3,954 ) 24,688 9,814 In 2018, we renewed our participation in all of our assumed programs. Loss and loss settlement expenses decreased in 2018 compared to 2017 as we remain conservative in our reserving approach, and during the year we reviewed our book of business and released excess reserves. During 2018 for ceded business, ceded loss and loss settlement expenses decreased primarily due to commercial auto, commercial property, and catastrophe losses staying in our retention lowering our ceded recoverable amounts. In 2017, we renewed our participation in all of our assumed programs. Loss and loss settlement expenses ceded increased in 2017 as compared to 2016, primarily due to an increase in severity of commercial auto losses, assumed reinsurance losses and catastrophe losses. In 2016, we renewed our participation in all of our assumed programs. Refer to Note 5 "Reserves for Losses and Loss Settlement Expenses" for an analysis of changes in our overall property and casualty insurance reserves. Reinsurance Programs and Retentions We have several programs that provide reinsurance coverage. This reinsurance coverage limits the risk of loss that we retain by reinsuring direct risks in excess of our retention limits. The following table provides a summary of our primary reinsurance programs. Retention amounts reflect the accumulated retentions and co-participation of all layers within a program. For 2018, there was an all lines annual aggregate excess of loss program with variable retention of 6.78 percent of gross net earned premium with a minimum retention of $58.5 million and a maximum of $71.5 million . Our all lines aggregate recovery is also limited to $30.0 million . For 2017, there was an all lines annual aggregate excess of loss program with a variable retention of 7.02 percent of gross net earned premium with a minimum retention of $58.5 million and a maximum of $71.5 million. Our all lines aggregate recovery is also limited to a maximum of $30.0 million. For 2016, there was an all lines annual aggregate excess of loss program with a variable retention of 7.73 percent of gross net earned premium with a minimum retention of $52.0 million and a maximum of $65.0 million . Our all lines aggregate recovery is also limited to a maximum of $30.0 million . 2018 Reinsurance Programs Type of Reinsurance Stated Retention Limits Coverage Casualty excess of loss $ 2,500 $ 60,000 100 % of $ 57,500 Property excess of loss 2,500 25,000 100 % of $ 22,500 Surety excess of loss 1,500 45,000 100 % of $ 43,500 Property catastrophe, excess 20,000 250,000 100 % of $ 230,000 Boiler and machinery N/A 50,000 100 % of $ 50,000 2017 Reinsurance Programs Type of Reinsurance Stated Retention Limits Coverage Casualty excess of loss $ 2,500 $ 60,000 100 % of $ 57,500 Property excess of loss 2,500 25,000 100 % of $ 22,500 Surety excess of loss 1,500 45,000 100 % of $ 43,500 Property catastrophe, excess 20,000 250,000 100 % of $ 230,000 Boiler and machinery N/A 50,000 100 % of $ 50,000 2016 Reinsurance Programs Type of Reinsurance Stated Retention Limits Coverage Casualty excess of loss $ 2,500 $ 40,000 100 % of $ 37,500 Property excess of loss 2,500 25,000 100 % of $ 22,500 Surety excess of loss 1,500 36,000 100 % of $ 34,500 Property catastrophe, excess 20,000 250,000 100 % of $ 230,000 Boiler and machinery N/A 50,000 100 % of $ 50,000 If we incur catastrophe losses and loss settlement expenses that exceed the coverage limits of our reinsurance program, our property catastrophe program provides one guaranteed reinstatement. In such an instance, we are required to pay the reinsurers a reinstatement premium equal to the full amount of the original premium, which will reinstate the full amount of reinsurance available under the property catastrophe program. Discontinued Operations - Life Insurance Business Premiums and losses and loss settlement expenses related to our ceded business are as follows: Years Ended December 31, 2018 2017 2016 Ceded Business Ceded insurance in-force $ — $ 1,014,794 $ 1,023,197 Ceded premiums earned 716 2,722 2,768 Loss and loss settlement expenses ceded 1,473 3,726 3,359 |
RESERVES FOR LOSSES AND LOSS SE
RESERVES FOR LOSSES AND LOSS SETTLEMENT EXPENSES | 12 Months Ended |
Dec. 31, 2018 | |
Insurance Loss Reserves [Abstract] | |
RESERVES FOR LOSSES AND LOSS SETTLEMENT EXPENSES | RESERVES FOR LOSSES AND LOSS SETTLEMENT EXPENSES Property insurance indemnifies an insured with an interest in physical property for loss of, or damage to, such property or the loss of its income-producing abilities. Casualty insurance primarily covers liability for damage to property of, or injury to, a person or entity other than the insured. In most cases, casualty insurance also obligates the insurance company to provide a defense for the insured in litigation, arising out of events covered by the policy. Liabilities for losses and loss settlement expenses reflect management's best estimates at a given point in time of what we expect to pay for claims that have been reported and those that have been incurred but not reported ("IBNR"), based on known facts, circumstances, and historical trends. Because property and casualty insurance reserves are estimates of the unpaid portions of incurred losses that have been reported to us, as well as losses that have been incurred but not reported, the establishment of appropriate reserves, including reserves for catastrophes, is an inherently uncertain and complex process. The ultimate cost of losses and related loss settlement expenses may vary materially from recorded amounts. We regularly update our reserve estimates as new information becomes available and as events unfold that may affect the resolution of unsettled claims. Changes in prior year reserve estimates, which may be material, are reported as a component of losses and loss settlement expenses incurred in the period such changes are determined. The determination of reserves (particularly those relating to liability lines of insurance that have relatively longer lag in claim reporting) requires significant work to reasonably project expected future claim reporting and payment patterns. If, during the course of our regular monitoring of reserves, we determine that coverages previously written are incurring higher than expected losses, we will take action that may include, among other things, increasing the related reserves. Any adjustments we make to reserves are reflected in operating results in the year in which we make those adjustments. We engage an independent actuary, Regnier Consulting Group, Inc. ("Regnier"), to render an opinion as to the reasonableness of our statutory reserves annually. The actuarial opinion is filed in those states where we are licensed. On a quarterly basis, United Fire's internal actuary performs a detailed actuarial review of IBNR reserves. This review includes a comparison of results from the most recent analysis of reserves completed by both our internal and external actuaries. Senior management meets with our internal actuary to review, on a regular and quarterly basis, the adequacy of carried reserves based on results from this actuarial analysis. There are two fundamental types or sources of IBNR reserves. We record IBNR reserves for "normal" types of claims and also specific IBNR reserves related to unique circumstances or events. A major hurricane is an example of an event that might necessitate establishing specific IBNR reserves because an analysis of existing historical data would not provide an appropriate estimate. Our IBNR methodologies and assumptions are reviewed periodically, but changes are infrequent. In response to an increase in miles driven by commercial vehicles and an increase in distracted driving claims, we revised our commercial automobile severity assumptions, resulting in an increase to our carried loss IBNR. We also reviewed our methodology and assumptions in our product liability line, associated with our construction defects business, and decreased our frequency and severity assumptions due to improvement in development patterns related to the statute of limitations on accident years that have matured 13 to 15 years which haven't developed to the extent we initially expected. These assumption changes resulted in a release of IBNR in 2016 and 2017 for our product liability line. Besides the changes to our assumptions used for our commercial automobile line and product liability line, we continually review and revise items affecting our projections of required reserves for unpaid loss and loss adjustment expense ("LAE"). Items reviewed and revised include development factors for paid and reported loss, paid development factors for allocated LAE, and the ratios of paid unallocated LAE to paid loss. We do not discount loss reserves based on the time value of money. The following table provides an analysis of changes in our property and casualty losses and loss settlement expense reserves for 2018 , 2017 and 2016 (net of reinsurance amounts): Years Ended December 31, 2018 2017 2016 Gross liability for losses and loss settlement expenses $ 1,224,183 $ 1,123,896 $ 1,003,895 Ceded losses and loss settlement expenses (59,871 ) (59,794 ) (54,653 ) Net liability for losses and loss settlement expenses $ 1,164,312 $ 1,064,102 $ 949,242 Losses and loss settlement expenses incurred Current year $ 785,778 $ 779,966 $ 683,662 Prior years (54,167 ) (54,253 ) (31,229 ) Total incurred $ 731,611 $ 725,713 $ 652,433 Losses and loss settlement expense payments Current year $ 306,032 $ 311,972 $ 277,053 Prior years 334,502 313,531 260,520 Total paid $ 640,534 $ 625,503 $ 537,573 Net liability for losses and loss settlement expenses $ 1,255,389 $ 1,164,312 $ 1,064,102 Ceded loss and loss settlement expenses 57,094 59,871 59,794 Gross liability for losses and loss settlement expenses $ 1,312,483 $ 1,224,183 $ 1,123,896 There are a multitude of factors that can impact loss reserve development. Those factors include, but are not limited to: historical data, the potential impact of various loss reserve development factors and trends including historical loss experience, legislative enactments, judicial decisions, legal developments in imposition of damages, experience with alternative dispute resolution, results of our medical bill review process, the potential impact of salvage and subrogation and changes and trends in general economic conditions, including the effects of inflation. All of these factors influence our estimates of required reserves and for long tail lines these factors can change over the course of the settlement of the claim. However, there is no precise method for evaluating the specific dollar impact of any individual factor on the development of reserves. The significant drivers of the favorable reserve development in 2018 were our workers' compensation, reinsurance assumed, commercial automobile and fidelity and surety. During 2018 the only individual line with unfavorable development was commercial liability. Workers' compensation favorable development was primarily from reserve reductions for both reported claims and loss IBNR which were more than sufficient to offset paid loss with additional favorable development coming from loss adjustment expenses ("LAE") where the LAE IBNR reduction was more than sufficient to offset paid LAE which continues to benefit from additional litigation management efforts when compared to prior years. Reinsurance assumed favorable development is attributable reductions in reserves for both reported claims and loss IBNR as we reviewed our book of business and released excess reserves during 2018. Commercial automobile favorable development was driven by loss adjustment expense where LAE IBNR reductions were more than sufficient to offset paid LAE. Fidelity and surety favorable development is attributable reductions in reserves for both reported claims and loss IBNR which were more than sufficient to offset paid loss. Commercial liability adverse development is attributable to reserve strengthening for both reported claims and loss IBNR primarily in response to an increase in umbrella auto related claims while loss adjustment expense developed favorably with reductions of LAE IBNR more than sufficient to offset paid LAE. The significant drivers of the favorable reserve development in 2017 were our commercial liability and workers' compensation lines of business. Much of the favorable commercial liability development came from loss adjustment expense and is attributed to our continued litigation management efforts combined with some favorable development coming from decreases in reserves, which were more than sufficient to pay claims as they closed. Workers' compensation favorable development was due to the combined effects of decreases in claim reserves along with favorable changes affecting loss adjustment expense. Our personal lines also contributed favorable development. The lines that experienced adverse development during the year, which partially offset the favorable development mentioned earlier, were assumed reinsurance and commercial automobile. The adverse development for assumed reinsurance is due to increases in prior year reserves for unpaid claims while the adverse development for commercial auto is due to paid losses which were greater than reductions in reported loss reserves and reserves for claims incurred but not reported. No other single line of business contributed a significant portion of the total development. The significant drivers of the favorable reserve development in 2016 were our commercial liability and workers' compensation lines of business. Much of the favorable commercial liability development came from loss adjustment expense and is attributed to our continued litigation management efforts. Workers' compensation favorable development was due to the combined effects of decreases in claim reserves along with favorable changes affecting loss adjustment expense. Loss adjustment expense, closely tied to loss, generally decreases when loss decreases. Commercial property, commercial automobile and assumed reinsurance lines of business exhibited adverse development which provided a partial offset to the favorable development previously noted. The adverse development for all three lines is due to paid loss which was greater than reductions in reported loss reserves and reserves for claims incurred but not reported. No other single line of business contributed a significant portion of the total development. Generally, we base reserves for each claim on the estimated ultimate exposure for that claim. We believe that it is appropriate and reasonable to establish a best estimate for reserves within a range of reasonable estimates, especially when we are reserving for claims for bodily injury, disabilities and similar claims, for which settlements and verdicts can vary widely. Our reserving philosophy may result in favorable reserve development in future years that will decrease losses and loss settlement expenses for prior year claims in the year of adjustment. We realize that this philosophy, coupled with what we believe to be aggressive and successful claims management and loss settlement practices, has resulted in year-to-year redundancies in reserves. We believe our approach produces recorded reserves that are reasonably consistent as to their relative position within a range of reasonable reserves from year-to-year. However, conditions and trends that have affected the reserve development for a given year do change. Therefore, such development cannot be used to project future reserve redundancies or deficiencies. December 31, 2018 , net of reinsurance, as well as cumulative development, cumulative claim frequency and IBNR liabilities. Claim data for Mercer Insurance Group, which was acquired on March 28, 2011, is presented retrospectively. The cumulative number of reported claims, for calendar year 2018 and 2017, are counted for all lines of business on a per claimant per coverage basis and a single event may result in multiple claims due to the involvement of multiple individual claimants and / or multiple independent coverages. Claim counts for calendar years 2016 and prior are counted on a per claim and per coverage basis. Claim counts include open claims, claims that have been paid and closed, and reported claims that have been closed without the need for any payment. Line of business: Commercial other liability Incurred losses and allocated loss settlement expenses, net of reinsurance As of December 31, 2018 For the years ended December 31, Total of incurred but not reported liabilities plus expected development on reported claims Cumulative development Cumulative number of reported claims Accident Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 (Unaudited) 2009 $ 88,298 $ 85,991 $ 73,545 $ 65,831 $ 84,286 $ 83,660 $ 85,761 $ 86,757 $ 86,543 $ 85,576 $ 9,249 (2,722 ) 6,333 2010 88,987 69,533 65,299 82,865 78,564 77,948 78,291 78,498 76,956 11,859 (12,031 ) 5,264 2011 81,522 64,738 88,371 88,200 79,591 80,801 81,463 80,338 12,231 (1,184 ) 5,436 2012 100,389 96,158 94,195 91,980 92,537 91,346 89,731 15,179 (10,658 ) 5,631 2013 104,982 91,460 90,502 86,119 85,399 88,816 7,922 (16,166 ) 6,147 2014 118,928 117,958 106,486 97,809 102,487 10,092 (16,441 ) 6,289 2015 137,386 125,307 120,005 127,091 19,976 (10,295 ) 7,385 2016 139,144 130,041 136,275 26,097 (2,869 ) 8,217 2017 139,602 139,032 38,919 (570 ) 7,837 2018 163,059 78,705 6,088 Total $ 1,089,361 Line of business: Commercial other liability Cumulative paid losses and allocated loss settlement expenses, net of reinsurance For the years ended December 31, Accident Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 (Unaudited) 2009 $ 8,375 $ 21,151 $ 32,073 $ 41,696 $ 50,098 $ 56,789 $ 63,149 $ 67,733 $ 70,814 $ 72,673 2010 7,103 15,230 24,577 35,043 51,336 56,761 60,116 62,070 63,300 2011 6,236 13,670 26,260 40,595 50,146 56,150 62,165 64,541 2012 6,875 24,620 39,948 55,316 64,574 69,800 71,773 2013 9,835 25,228 39,953 54,559 65,773 72,115 2014 10,207 29,679 50,211 70,363 83,109 2015 11,185 27,182 53,901 74,292 2016 13,782 38,184 63,526 2017 17,716 43,172 2018 16,200 Total $ 624,701 All outstanding liabilities for unpaid losses and loss settlement expenses before 2009, net of reinsurance 31,672 Liabilities for unpaid losses and loss settlement expenses, net of reinsurance $ 496,332 Line of business: Commercial fire and allied Incurred losses and allocated loss settlement expenses, net of reinsurance As of December 31, 2018 For the years ended December 31, Total of incurred but not reported liabilities plus expected development on reported claims Cumulative development Cumulative number of reported claims Accident Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 (Unaudited) 2009 $ 113,754 $ 106,085 $ 105,031 $ 105,614 $ 87,751 $ 87,845 $ 87,932 $ 88,891 $ 89,027 $ 88,648 $ 80 (25,106 ) 18,053 2010 113,139 106,152 108,246 83,836 83,932 83,767 83,981 84,213 84,123 65 (29,016 ) 16,690 2011 148,220 142,330 117,082 120,492 119,820 120,219 121,434 121,319 281 (26,901 ) 16,037 2012 138,602 110,448 108,774 108,047 107,958 108,623 109,687 813 (28,915 ) 6,438 2013 91,521 88,550 91,498 92,212 93,826 93,858 515 2,337 6,626 2014 126,216 131,198 128,762 128,185 128,503 1,012 2,287 7,883 2015 103,177 108,293 110,633 108,235 1,633 5,058 7,523 2016 147,473 144,208 143,721 2,320 (3,752 ) 9,703 2017 155,139 160,240 4,553 5,101 13,021 2018 143,280 13,286 9,235 Total $ 1,181,614 Line of business: Commercial fire and allied Cumulative paid losses and allocated loss settlement expenses, net of reinsurance For the years ended December 31, Accident Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 (Unaudited) 2009 $ 53,219 $ 72,181 $ 77,732 $ 82,809 $ 86,930 $ 87,544 $ 87,721 $ 88,037 $ 88,159 $ 88,334 2010 52,660 72,271 78,284 80,352 82,037 83,000 83,374 83,915 83,942 2011 85,585 104,800 109,429 112,497 116,614 118,183 120,178 120,731 2012 71,008 94,380 100,078 103,197 105,250 106,521 106,740 2013 59,331 78,226 82,853 86,115 89,200 91,493 2014 84,456 113,663 116,750 122,370 123,697 2015 67,217 90,454 95,515 101,367 2016 92,895 125,962 132,429 2017 99,484 137,058 2018 92,770 Total $ 1,078,561 All outstanding liabilities for unpaid losses and loss settlement expenses before 2009, net of reinsurance 522 Liabilities for unpaid losses and loss settlement expenses, net of reinsurance $ 103,575 Line of business: Commercial automobile Incurred losses and allocated loss settlement expenses, net of reinsurance As of December 31, 2018 For the years ended December 31, Total of incurred but not reported liabilities plus expected development on reported claims Cumulative development Cumulative number of reported claims Accident Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 (Unaudited) 2009 $ 80,021 $ 69,328 $ 68,569 $ 64,121 $ 64,516 $ 63,605 $ 63,560 $ 63,567 $ 63,509 $ 63,506 $ — (16,515 ) 15,019 2010 75,781 68,068 65,860 67,015 67,563 67,296 68,086 67,910 67,893 5 (7,888 ) 16,246 2011 84,887 87,299 90,750 92,519 92,379 91,336 90,766 90,838 199 5,951 15,248 2012 100,039 90,848 94,755 95,321 96,594 96,389 96,305 243 (3,734 ) 14,364 2013 104,356 98,037 102,943 103,726 104,980 105,248 811 892 15,520 2014 107,723 106,076 113,720 118,869 120,385 1,706 12,662 17,277 2015 125,506 129,816 132,206 138,987 3,837 13,481 19,961 2016 174,018 175,357 174,337 10,723 319 27,040 2017 227,919 224,553 28,591 (3,366 ) 32,281 2018 236,629 65,079 30,521 Total $ 1,318,681 Line of business: Commercial automobile Cumulative paid losses and allocated loss settlement expenses, net of reinsurance For the years ended December 31, Accident Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 (Unaudited) 2009 $ 27,674 $ 44,867 $ 53,451 $ 58,087 $ 61,398 $ 62,732 $ 63,495 $ 63,503 $ 63,508 $ 63,506 2010 29,329 41,141 52,953 57,947 62,231 65,169 67,622 67,852 67,853 2011 34,332 50,931 65,021 79,383 85,348 87,475 88,609 89,459 2012 39,247 57,201 71,469 82,944 90,292 93,179 94,747 2013 43,592 67,630 79,663 90,780 96,375 100,058 2014 45,704 68,033 87,590 99,922 109,682 2015 50,782 78,225 99,201 118,395 2016 66,013 103,528 128,157 2017 81,311 126,644 2018 81,572 Total $ 980,073 All outstanding liabilities for unpaid losses and loss settlement expenses before 2009, net of reinsurance 56 Liabilities for unpaid losses and loss settlement expenses, net of reinsurance $ 338,664 Line of business: Workers' compensation Incurred losses and allocated loss settlement expenses, net of reinsurance As of December 31, 2018 For the years ended December 31, Total of incurred but not reported liabilities plus expected development on reported claims Cumulative development Cumulative number of reported claims Accident Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 (Unaudited) 2009 $ 43,560 $ 39,009 $ 36,294 $ 36,837 $ 36,823 $ 36,158 $ 36,014 $ 35,026 $ 35,012 $ 34,783 $ 193 (8,777 ) 4,265 2010 38,210 42,531 41,180 41,167 40,647 41,422 41,468 42,617 42,666 346 4,456 3,986 2011 39,967 38,481 35,352 34,309 33,585 33,314 33,352 32,707 425 (7,260 ) 3,955 2012 48,848 46,279 42,158 38,423 38,553 39,015 39,182 503 (9,666 ) 3,982 2013 64,048 62,579 56,369 54,584 52,761 51,753 781 (12,295 ) 4,236 2014 64,051 60,729 58,284 56,630 54,636 1,106 (9,415 ) 4,668 2015 53,788 55,578 51,003 46,682 935 (7,106 ) 5,515 2016 70,419 66,575 61,648 2,042 (8,771 ) 7,376 2017 76,184 69,528 3,744 (6,656 ) 7,283 2018 71,972 5,885 5,478 Total $ 505,557 Line of business: Workers' compensation Cumulative paid losses and allocated loss settlement expenses, net of reinsurance For the years ended December 31, Accident Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 (Unaudited) 2009 $ 10,478 $ 20,292 $ 24,189 $ 27,747 $ 29,898 $ 31,003 $ 31,886 $ 32,911 $ 33,117 $ 33,313 2010 11,821 22,606 28,765 31,887 33,119 34,143 35,052 38,973 39,208 2011 10,322 21,678 26,033 27,497 28,247 29,022 29,453 29,700 2012 11,802 23,023 28,397 30,933 33,063 34,330 35,388 2013 14,136 30,209 38,023 42,941 45,078 47,071 2014 13,965 30,289 38,441 42,964 45,193 2015 12,063 27,304 35,229 38,424 2016 14,413 32,345 40,680 2017 14,647 31,309 2018 16,949 Total $ 357,235 All outstanding liabilities for unpaid losses and loss settlement expenses before 2009, net of reinsurance 20,232 Liabilities for unpaid losses and loss settlement expenses, net of reinsurance $ 168,554 Line of business: Personal Incurred losses and allocated loss settlement expenses, net of reinsurance As of December 31, 2018 For the years ended December 31, Total of incurred but not reported liabilities plus expected development on reported claims Cumulative development Cumulative number of reported claims Accident Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 (Unaudited) 2009 $ 34,597 $ 33,519 $ 31,945 $ 32,026 $ 32,134 $ 32,029 $ 32,085 $ 32,070 $ 31,867 $ 31,879 $ 2 (2,718 ) 13,502 2010 36,686 34,347 33,928 33,865 33,403 33,413 33,432 33,213 33,204 14 (3,482 ) 13,330 2011 50,014 48,534 47,090 47,035 46,968 47,013 46,733 46,761 32 (3,253 ) 14,846 2012 47,924 46,199 46,403 46,150 44,715 44,352 44,165 7 (3,759 ) 10,776 2013 39,232 38,525 37,262 37,086 36,729 36,661 36 (2,571 ) 9,240 2014 53,910 52,661 52,944 52,782 52,615 76 (1,295 ) 10,929 2015 42,848 41,088 40,336 40,368 132 (2,480 ) 9,522 2016 48,072 45,840 45,379 351 (2,693 ) 11,840 2017 60,330 59,342 733 (988 ) 14,454 2018 51,639 3,027 12,246 Total $ 442,013 Line of business: Personal Cumulative paid losses and allocated loss settlement expenses, net of reinsurance For the years ended December 31, Accident Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 (Unaudited) 2009 $ 22,086 $ 27,926 $ 29,801 $ 30,829 $ 31,564 $ 31,644 $ 31,718 $ 31,804 $ 31,837 $ 31,849 2010 24,499 29,867 31,340 32,076 32,771 32,997 33,165 33,158 33,154 2011 36,489 43,801 45,306 45,949 46,487 46,573 46,575 46,650 2012 30,415 41,979 43,375 44,448 43,569 44,139 44,158 2013 25,505 32,788 34,297 35,306 36,155 36,323 2014 37,055 47,912 49,710 51,837 52,018 2015 29,551 37,431 39,027 39,428 2016 32,999 40,910 42,660 2017 42,135 53,111 2018 37,410 Total $ 416,761 All outstanding liabilities for unpaid losses and loss settlement expenses before 2009, net of reinsurance 1,418 Liabilities for unpaid losses and loss settlement expenses, net of reinsurance $ 26,668 December 31, 2018 Net outstanding liabilities for unpaid losses and allocated loss settlement expenses: Commercial other liability $ 496,332 Commercial fire and allied 103,575 Commercial automobile 338,664 Commercial workers' compensation 168,554 Personal 26,668 All other lines 32,595 Net outstanding liabilities for unpaid losses and allocated loss settlement expenses 1,166,388 Net outstanding liabilities for unpaid unallocated loss settlement expenses 86,753 Fair value adjustment (purchase accounting adjustment for Mercer acquisition) 2,248 Liabilities for unpaid losses and loss settlement expenses, net of reinsurance 1,255,389 Reinsurance recoverable on unpaid losses and allocated loss settlement expenses: Commercial other liability 22,556 Commercial fire and allied 2,723 Commercial automobile 3,166 Commercial workers' compensation 27,465 Personal 4 All other lines 3,329 Reinsurance recoverable on unpaid losses and allocated loss settlement expenses 59,243 Reinsurance fair value amortization (purchase accounting adjustment for Mercer acquisition) (2,149 ) Total reinsurance recoverable on unpaid losses and loss settlement expenses 57,094 Total gross liability for unpaid losses and loss settlement expenses $ 1,312,483 December 31, 2018 . Average annual percentage payout of incurred claims by age, net of reinsurance Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 (Unaudited) Commercial other liability 9.7 % 15.5 % 16.7 % 16.0 % 13.0 % 7.1 % 5.4 % 3.6 % 2.6 % 2.2 % Commercial fire and allied 64.0 % 21.4 % 4.9 % 3.8 % 2.7 % 1.3 % 0.6 % 0.5 % 0.1 % 0.2 % Commercial automobile 39.0 % 20.5 % 14.8 % 11.0 % 6.5 % 3.1 % 1.9 % 0.4 % — % — % Commercial workers' compensation 26.6 % 29.3 % 14.1 % 7.6 % 4.2 % 3.0 % 2.2 % 4.3 % 0.6 % 0.6 % Personal 71.9 % 19.1 % 4.0 % 2.4 % 1.0 % 0.6 % 0.2 % 0.1 % — % — % |
STATUTORY REPORTING, CAPITAL RE
STATUTORY REPORTING, CAPITAL REQUIREMENTS AND DIVIDENDS AND RETAINED EARNINGS RESTRICTIONS | 12 Months Ended |
Dec. 31, 2018 | |
Statutory Insurance Financial Information [Abstract] | |
STATUTORY REPORTING, CAPITAL REQUIREMENTS AND DIVIDENDS AND RETAINED EARNINGS RESTRICTIONS | STATUTORY REPORTING, CAPITAL REQUIREMENTS AND DIVIDENDS AND RETAINED EARNINGS RESTRICTIONS Statutory capital and surplus in regards to policyholders at December 31, 2018 , 2017 and 2016 and statutory net income (loss) for the years then ended are as follows: Statutory Capital and Surplus Statutory Net Income (Loss) 2018 Property and casualty business $ 774,257 $ 219,065 Life, accident and health business (1) — 3,548 2017 Property and casualty business $ 757,443 $ 19,687 Life, accident and health business 144,533 5,485 2016 Property and casualty business $ 770,908 $ 39,087 Life, accident and health business 139,806 (3,177 ) (1) The 2018 Life, accident and health business only includes results prior to the closing of the sale of United Life Insurance Company, which closed on March 30, 2018. Prior to the closing of the sale, United Fire & Casualty Company owned United Life Insurance Company, accordingly, the property and casualty statutory capital and surplus includes life, accident and health statutory capital and surplus, and therefore represents our total consolidated statutory capital and surplus. State insurance holding company laws and regulations generally require approval from the insurer's domicile state insurance Commissioner for any material transaction or extraordinary dividend. For property and casualty insurers, a material transaction is defined as any sale, loan, exchange, transfer or guarantee with an affiliate where the aggregate value of the transaction exceeds 25 percent of the insurer's policyholders' surplus or three percent of its admitted assets (measured at December 31 of the preceding year), whichever is less. For life insurers, a material transaction with an affiliate is defined as a transaction with an aggregate value exceeding three percent of the life insurer's admitted assets (measured at December 31 of the preceding year). State laws and regulations generally limit the amount of funds that an insurance company may distribute to a parent as a dividend without Commissioner approval. As a holding company with no independent operations of its own, United Fire Group, Inc. relies on dividends received from its insurance company subsidiaries in order to pay dividends to its common shareholders. Dividends payable by our insurance subsidiaries are governed by the laws in the states in which they are domiciled. In all cases, these state laws permit the payment of dividends only from earned surplus arising from business operations. For example, under Iowa law, the maximum dividend or distribution that may be paid within a 12-month period without prior approval of the Iowa Insurance Commissioner is generally restricted to the greater of 10 percent of statutory surplus as of the preceding December 31, or net income of the preceding calendar year on a statutory basis, not greater than earned statutory surplus. Other states in which our insurance company subsidiaries are domiciled may impose similar restrictions on dividends and distributions. Based on these restrictions, at December 31, 2018 , our insurance company subsidiary, United Fire & Casualty, is able to make a minimum of $106.2 million in dividend payments without prior regulatory approval. At December 31, 2018 , we were in compliance with applicable state laws and regulations. These restrictions will not have a material impact in meeting our cash obligations. In addition, United Fire Group, Inc. maintains a credit agreement, as discussed in Note 14 "Credit Facility," which permits us to borrow up to an aggregate principal amount of $50,000 and allows the Company to increase the aggregate amount of the commitments thereunder by up to $100,000 . We paid dividends to our common shareholders of $105,408 , $27,337 and $24,591 in 2018 , 2017 and 2016 , respectively. Payments of any future dividends and the amounts of such dividends, however, will depend upon factors such as net income, financial condition, capital requirements, and general business conditions. We will only pay dividends if declared by our Board of Directors, out of funds legally available, and subject to any other restrictions that may be applicable to us. In 2018 , 2017 and 2016 , United Fire & Casualty Company received dividends from its wholly owned subsidiaries of $8,500 , $ 13,300 and $ 26,000 , respectively. In 2018 , 2017 and 2016 , United Fire & Casualty Company paid dividends to United Fire Group, Inc. totaling $105,000 , $40,000 and $24,000 , respectively. These intercompany dividend payments are eliminated for reporting in our Consolidated Financial Statements. Our property and casualty subsidiaries are required to prepare and file statutory-basis financial statements in conformity with the National Association of Insurance Commissioners ("NAIC") Accounting Practices and Procedures Manual, subject to any deviations prescribed or permitted by the applicable insurance commissioner and/or director. The accounting principles used to prepare these statutory-basis financial statements follow prescribed or permitted accounting practices that differ from GAAP. Prescribed statutory accounting principles include state laws, regulations and general administrative rules issued by the state of domicile, as well as a variety of publications and manuals of the NAIC. Permitted accounting practices encompass all accounting practices not prescribed, but allowed by the state of domicile. No material permitted accounting practices were used to prepare our statutory-basis financial statements during 2018 , 2017 and 2016 . Statutory accounting principles primarily differ from GAAP in that policy acquisition and certain sales inducement costs are charged to expense as incurred, goodwill is amortized, life insurance reserves are established based on different actuarial assumptions and the values reported for investments, pension obligations and deferred taxes are established on a different basis. We are directed by the state insurance departments' solvency regulations to calculate a required minimum level of statutory capital and surplus based on insurance risk factors. The risk-based capital results are used by the NAIC and state insurance departments to identify companies that merit regulatory attention or the initiation of regulatory action. United Fire & Casualty Company and its property and casualty insurance subsidiaries and affiliates had statutory capital and surplus in regards to policyholders well in excess of their required levels at December 31, 2018 |
FEDERAL INCOME TAX
FEDERAL INCOME TAX | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
FEDERAL INCOME TAX | FEDERAL INCOME TAX The Tax Act was enacted on December 22, 2017. The Tax Act significantly revised the U.S. corporate income tax laws including lowering the U.S. federal corporate tax rate from 35 percent to 21 percent , effective January 1, 2018. In December 2017, the SEC staff issued Staff Accounting Bulletin No. 118, which addresses how a company recognizes provisional amounts when a company does not have the necessary information available, prepared or analyzed in reasonable detail to complete its accounting for the effect of the changes in the Tax Act. The measurement period ends when a company has obtained, prepared and analyzed the information necessary to finalize its accounting, but cannot extend beyond one year. As of December 31, 2018 we have completed accounting for the tax effects of enactment of the Tax Act and no adjustments were made during the measurement period. Federal income tax expense (benefit) from both continuing and discontinued operations is composed of the following: Years Ended December 31, 2018 2017 2016 Current $ 18,493 $ 1,989 $ 3,239 Deferred (21,791 ) (26,719 ) 5,524 Total $ (3,298 ) $ (24,730 ) $ 8,763 A reconciliation of income tax expense (benefit) computed at the applicable federal tax rate of 21.0 percent in 2018 and 35.0 percent in 2017 to the amount recorded in the accompanying Consolidated Statements of Income and Comprehensive Income is as follows: Years Ended December 31, 2018 2017 2016 Computed expected income tax expense $ 5,114 $ 9,202 $ 20,533 Impact of enactment of Tax Act — (21,884 ) — Tax-exempt municipal bond interest income (4,235 ) (8,875 ) (8,330 ) Nontaxable dividend income (591 ) (1,540 ) (1,317 ) Valuation allowance reduction (329 ) (547 ) (547 ) Other, net (3,257 ) (1,086 ) (1,576 ) Consolidated federal income tax expense (benefit) $ (3,298 ) $ (24,730 ) $ 8,763 Reconciliation of consolidated federal income tax expense (benefit) from: Continuing operations $ (11,405 ) $ (29,220 ) $ 8,379 Gain on sale of discontinued operations 7,544 — — Discontinued operations 563 4,490 384 Consolidated federal income tax expense (benefit) $ (3,298 ) $ (24,730 ) $ 8,763 We measure certain deferred tax assets and liabilities based on the rates at which they are expected to reverse in the future, which is 21.0 percent . The significant components of our net deferred tax liability at December 31, 2018 and 2017 are as follows: December 31, 2018 2017 Deferred tax liabilities Net unrealized appreciation on investment securities: Equity securities $ 38,430 $ 50,839 All other securities (2,478 ) 7,599 Deferred policy acquisition costs 19,487 30,404 Investments in partnerships 2,510 3,653 Prepaid pension cost 4,158 3,416 Net bond discount accretion 296 666 Depreciation 1,063 593 Revaluation of investment basis (1) 419 545 Identifiable intangible assets (1) 1,689 1,838 Other 1,639 1,934 Gross deferred tax liability $ 67,213 $ 101,487 Deferred tax assets Financial statement reserves in excess of income tax reserves $ 19,800 $ 17,036 Unearned premium adjustment 20,406 19,389 Net operating loss carryforwards — 329 Underfunded benefit plan obligation 5,622 12,375 Post-retirement benefits other than pensions 12,035 11,942 Other-than-temporary impairment of investments 2,094 2,313 Contingent ceding commission accrual 14 317 Alternative minimum tax credit carryforward — 6,011 Compensation expense related to stock options 3,506 3,289 Other 4,648 4,145 Gross deferred tax asset $ 68,125 $ 77,146 Valuation allowance — (329 ) Deferred tax asset $ 68,125 $ 76,817 Net deferred tax liability (asset) $ (912 ) $ 24,670 (1) Related to our acquisition of Mercer Insurance Group. Due to our determination that we may not be able to fully realize the benefits of the net operating losses ("NOLs") acquired in the purchase of American Indemnity Financial Corporation in 1999, which are only available to offset the future taxable income of our property and casualty insurance operations and are further limited as to the amount that can be utilized in any given year, we did not record a valuation allowance against these NOLs at December 31, 2018 . At December 31, 2017 we recorded a valuation allowance against these NOLs of $329 . Based on a yearly review, we determine whether the benefit of the NOLs can be realized, and, if so, the decrease in the valuation allowance is recorded as a reduction to current federal income tax expense. If NOLs expire during the year, the decrease in the valuation allowance is offset with a corresponding decrease to the deferred income tax asset. The valuation allowance was reduced by $657 during 2018 due to the realization of $3,129 in NOLs. The valuation allowance was reduced by $547 in 2017 due to no realization of NOLs. At December 31, 2018 , there are no remaining NOL's. At December 31, 2018 , we had no |
EMPLOYEE BENEFITS
EMPLOYEE BENEFITS | 12 Months Ended |
Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |
EMPLOYEE BENEFITS | EMPLOYEE BENEFITS We offer various benefits to our employees including a noncontributory defined benefit pension plan, an employee/retiree health and dental benefit plan, a profit-sharing plan and an employee stock ownership plan. Pension and Post-retirement Benefit Plans We offer a noncontributory defined benefit pension plan in which all of our employees are eligible to participate after they have completed one year of service, attained 21 years of age and have met the hourly service requirements. Retirement benefits under our pension plan are based on the number of years of service and level of compensation. Our policy to fund the pension plan on a current basis to not less than the minimum amounts required by the Employee Retirement Income Security Act of 1974, as amended, and the Internal Revenue Code of 1986, as amended, is to assure that plan assets will be adequate to provide retirement benefits. We estimate that we will contribute approximately $4,000 to the pension plan in 2019 . We also offer a health and dental benefit plan to all of our eligible employees and retirees that consists of two programs: (1) the self-funded employee health and dental benefit plan and (2) the self-funded (pre-65) and fully-funded (post-65) retiree health and dental benefit plan (the "post-retirement benefit plan"). Effective January 1, 2017, there was a plan amendment, which included the following changes: eliminated the pre-65 retirement plan with a $500 hundred dollar deductible; for retirements after January 1, 2017, the retiree will pay 50 percent of the lower cost supplemental plan if they are 65 or older and 100 percent of the premium if less than 65; and removed spousal coverage after the death of the participant. The financial impact of the changes were reflected in accumulated other comprehensive income at December 31, 2016. Effective January 1, 2019, there was a plan amendment, which requires spouses to pay 100 percent of the medical, dental & vision premiums and the subsidy for the post-65 retirees is based off the lowest cost Medicare Supplement Plan (Plan 1). The financial impact of the changes were reflected in accumulated other comprehensive income at December 31, 2018. The post-retirement benefit plan provides health and dental benefits to our retirees (and covered dependents) who have met the service and participation requirements stipulated by the post-retirement benefit plan. The third party administrators for the post-retirement benefit plan are responsible for making medical and dental care benefit payments. Participants are required to submit claims for reimbursement or payment to the claims administrator within twelve months after the end of the calendar year in which the charges were incurred. An unfunded benefit obligation is reported for the post-retirement benefit plan in the accompanying Consolidated Balance Sheets. Investment Policies and Strategies Our investment policy and objective for the pension plan is to generate long-term capital growth and income by way of a diversified investment portfolio along with appropriate employer contributions, which will allow us to provide for the pension plan's benefit obligation. The investments held by the pension plan at December 31, 2018 include the following asset categories: • Fixed income securities, which may include bonds, and convertible securities; • Equity securities, which may include various types of stock, such as large-cap, mid-cap, small-cap, and international stocks; • Pooled separate accounts, which includes two separate funds, a core plus bond separate account and a real estate separate account; • An arbitrage fund, which is a fund that takes advantage of price discrepancies, primarily equity securities, for the same asset in different markets; • A group annuity contract that is administered by United Life, a former subsidiary of United Fire; and • Cash and cash equivalents, which include money market funds. We have an internal investment/retirement committee, which includes our Chief Executive Officer, Chief Investment Officer, and Chief Operating Officer, all of whom receive monthly information on the value of the pension plan assets and their performance. Quarterly, the committee meets to review and discuss the performance of the pension plan assets as well as the allocation of investments within the pension plan. As of December 31, 2018 , we had six external investment managers that are allowed to exercise investment discretion, subject to limitations, if any, established by the investment/retirement committee. We utilize multiple investment managers in order to maximize the pension plan's investment return while mitigating risk. None of our investment managers uses leverage in managing the pension plan. Annually, the investment/retirement committee meets with each investment manager to review the investment manager's goals, objectives and the performance of the assets they manage. The decision to establish or terminate a relationship with an investment manager is at the discretion of our investment/retirement committee. We consider historical experience for comparable investments and the target allocations we have established for the various asset categories of the pension plan to determine the expected long-term rate of return, which is an assumption as to the average rate of earnings expected on the pension plan funds invested, or to be invested, by the pension plan, to provide for the settlement of benefits included in the projected pension benefit obligation. Investment securities, in general, are exposed to various risks, such as fluctuating interest rates, credit standing of the issuer of the security and overall market volatility. Annually, we perform an analysis of expected long-term rates of return based on the composition and allocation of our pension plan assets and recent economic conditions. The following is a summary of the pension plan's actual and target asset allocations at December 31, 2018 and 2017 by asset category: Target Pension Plan Assets 2018 % of Total 2017 % of Total Allocation Fixed maturity securities - corporate bonds $ 10,051 6.1 % $ 11,003 7.0 % 0 % - 15 % Redeemable preferred stock 2,697 1.6 3,216 2.0 0 % - 10 % Equity securities 86,586 52.5 87,603 55.6 50 % - 70 % Pooled separate accounts Core plus bond separate account fund 20,222 12.3 17,948 11.4 0 % - 40 % U.S. property separate account fund 20,841 12.6 15,502 9.8 0 % - 25 % Arbitrage fund 8,716 5.3 8,506 5.4 0 % - 10 % United Life annuity 10,339 6.3 9,846 6.2 5 % - 10 % Cash and cash equivalents 5,367 3.3 4,020 2.6 0 % - 10 % Total plan assets $ 164,819 100.0 % $ 157,644 100.0 % The investment return expectations for the pension plan are used to develop the asset allocation based on the specific needs of the pension plan. Accordingly, equity securities comprise the largest portion of our pension plan assets, as they yield the highest rate of return. The United Life annuity, which is the fifth largest asset category and was originally written by our former life insurance subsidiary in 1976, provides a guaranteed rate of return. The interest rate on the group annuity contract is determined annually. The availability of assets held in cash and cash equivalents enables the pension plan to mitigate market risk that is associated with other types of investments and allows the pension plan to maintain liquidity both for the purpose of making future benefit payments to participants and their beneficiaries and for future investment opportunities. Valuation of Investments Fixed Maturity and Equity Securities Investments in equity securities are stated at fair value based upon quoted market prices reported on recognized securities exchanges on the last business day of the year. Purchases and sales of securities are recorded as of the trade date. The fair value of fixed maturity securities categorized as Level 2 is determined by management based on fair value information reported in the custodial statements received from Plan’s investment managers, which is derived from recent trading activity of the underlying security in the financial markets. These securities represent various taxable bonds held by the pension plan. These securities categorized as Level 2 are valued in the same manner as described in Part II, Item 8, Note 3 and have the same controls in place. Pooled Separate Accounts The pension plan invests in two pooled separate account funds, a core plus bond separate account fund and a U.S. property separate account fund. Investments in the core plus bond separate account fund are stated at fair value as provided by the administrator of the fund based on the fair value of the underlying assets owned by the fund. The fair value measurement is classified within Level 2 of the fair value hierarchy. The fair value of the investments in the U.S. property separate account fund is provided by the administrator of the fund based on the net asset value of the fund. The net asset value is based on the fair value of the underlying properties included in the fund. The fair value of the underlying properties are based on property appraisals conducted by an independent third party. The fair value measurement is classified within Level 3 of the fair value hierarchy. We have not adjusted the net asset value provided by the custodian for either fund. Arbitrage Fund The fair value of the arbitrage fund is determined based on its net asset value, which is obtained from the custodian and determined monthly with issuances and redemptions of units of the fund made, based on the net asset value per unit as determined on the valuation date. We have not adjusted the net asset value provided by the custodian. United Life Annuity The United Life group annuity contract, which is a deposit administration contract, is stated at contract value as determined by United Life. Under the group annuity contract, the plan's investment account is credited with compound interest on the average account balance for the year. The interest rate is equivalent to the ratio of net investment income to mean assets of United Life, net of investment expenses. Cash and Cash Equivalents Cash and cash equivalents primarily consist of insured cash and money market funds held with various financial institutions. Interest is earned on a daily basis. The fair value of these funds approximates their cost basis due to their short-term nature. Fair Value Measurement The following tables present the categorization of the pension plan's assets measured at fair value on a recurring basis at December 31, 2018 and 2017 : Fair Value Measurements Description December 31, 2018 Level 1 Level 2 Level 3 Fixed maturity securities - corporate bonds $ 10,051 $ — $ 10,051 $ — Redeemable preferred stock 2,697 2,697 — — Equity securities 86,586 86,586 — — Pooled separate accounts Core plus bond separate account fund 20,222 — 20,222 — U.S. property separate account fund 20,841 — — 20,841 Arbitrage fund 8,716 — 8,716 — Money market funds 5,364 5,364 — — Total assets measured at fair value $ 154,477 $ 94,647 $ 38,989 $ 20,841 Fair Value Measurements Description December 31, 2017 Level 1 Level 2 Level 3 Fixed maturity securities - corporate bonds $ 11,003 $ — $ 11,003 $ — Redeemable preferred stock 3,216 3,216 — — Equity securities 87,603 87,603 — — Pooled separate accounts Core plus bond separate account fund 17,948 — 17,948 — U.S. property separate account fund 15,502 — — 15,502 Arbitrage fund 8,506 — 8,506 — Money market funds 4,011 4,011 — — Total assets measured at fair value $ 147,789 $ 94,830 $ 37,457 $ 15,502 There were no transfers of assets in or out of Level 1 or Level 2 during the period. The fair value of investments categorized as Level 1 is based on quoted market prices that are readily and regularly available. The fair value of fixed maturity securities categorized as Level 2 is determined by management based on fair value information reported in the custodial statements, which is derived from recent trading activity of the underlying security in the financial markets. These securities represent various taxable bonds held by the pension plan. These securities categorized as Level 2 are valued in the same manner as described in Part II, Item 8, Note 3 and have the same controls in place. The fair value of the arbitrage fund and bond and mortgage pooled separate account fund are categorized as Level 2 since there are no restrictions as to the pension plan's ability to redeem its investment at the net asset value of the fund as of the reporting date. The following tables provide a summary of the changes in fair value of the pension plan's Level 3 securities: U.S. property separate account fund Balance at January 1, 2018 $ 15,502 Unrealized gains 1,339 Company Contributions 4,000 Balance at December 31, 2018 $ 20,841 U.S. property separate account fund Balance at January 1, 2017 $ 14,330 Unrealized gains 1,172 Balance at December 31, 2017 $ 15,502 Estimates and Assumptions The preparation of financial statements in conformity with GAAP requires us to make various estimates and assumptions that affect the reporting of net periodic benefit cost, plan assets and plan obligations for each plan at the date of the financial statements. Actual results could differ from these estimates. One significant estimate relates to the calculation of the benefit obligation for each plan. We annually establish the discount rate, which is an estimate of the interest rate at which these benefits could be effectively settled, that is used to determine the present value of the respective plan's benefit obligations as of December 31. In estimating the discount rate, we look to rates of return on high-quality, fixed-income investments currently available and expected to be available during the period to maturity of the respective plan's benefit obligations. In October 2014, the Society of Actuaries finalized a new mortality table and a new mortality improvement scale. The mortality improvement scale was further refined by the Society of Actuaries in 2015, 2016 and 2017. In October 2018, the mortality assumption has been updated to reflect the annual historical U.S. mortality data to 2016 published by the Society of Actuaries. These updated tables reflect improved life expectancies and an expectation that the trend will continue. We have reviewed these updated tables and have updated the mortality assumptions based on this information and also based on research provided by our external actuaries. We will continue to monitor mortality assumptions and make changes as appropriate to reflect additional research and our resulting best estimate of future mortality rates. Assumptions Used to Determine Benefit Obligations The following actuarial assumptions were used to determine the reported plan benefit obligations at December 31: Weighted-average assumptions as of Pension Benefits Post-retirement Benefits December 31, 2018 2017 2018 2017 Discount rate 4.18 % 3.65 % 4.18 % 3.65 % Rate of compensation increase 3.00 3.00 N/A N/A Increasing interest rates resulted in an increase in the discount rates we use to value our respective plan's benefit obligations at December 31, 2018 compared to December 31, 2017. Assumptions Used to Determine Net Periodic Benefit Cost The following actuarial assumptions were used at January 1 to determine our reported net periodic benefit costs for the year ended December 31: Weighted-average assumptions as of Pension Benefits Post-retirement Benefits January 1, 2018 2017 2016 2018 2017 2016 Discount rate 3.65 % 4.17 % 4.21 % 3.65 % 4.17 % 4.21 % Expected long-term rate of return on plan assets 6.70 7.50 7.50 N/A N/A N/A Rate of compensation increase 3.00 3.00 3.00 N/A N/A N/A Assumed Health Care Cost Trend Rates Health Care Benefits Dental Claims Years Ended December 31, 2018 2017 2018 2017 Health care cost trend rates assumed for next year 6.75 % 7.00 % 4.00 % 4.00 % Rate to which the health care trend rate is assumed to decline (ultimate trend rate) 4.50 % 4.50 % N/A N/A Year that the rate reaches the ultimate trend rate 2029 2026 N/A N/A Assumed health care cost trend rates have a significant effect on the amounts reported for the post-retirement benefit plan. A 1.0 percent change in assumed health care cost trend rates would have the following effects: 1% Increase 1% Decrease Effect on the net periodic post-retirement health care benefit cost $ 677 $ (530 ) Effect on the accumulated post-retirement benefit obligation 5,066 (4,107 ) Benefit Obligation and Funded Status The following table provides a reconciliation of benefit obligations, plan assets and funded status of our plans: Pension Benefits Post-retirement Benefits Years Ended December 31, 2018 2017 2018 2017 Reconciliation of benefit obligation Benefit obligation at beginning of year $ 208,349 $ 171,876 $ 55,728 $ 46,785 Service cost 8,701 6,857 2,998 2,021 Interest cost 7,500 7,060 2,009 1,927 Actuarial loss (17,535 ) 26,963 (12,094 ) 6,326 Adjustment for plan amendment — — (16,159 ) — Benefit payments (4,859 ) (4,407 ) (1,509 ) (1,331 ) Benefit obligation at end of year (1) $ 202,156 $ 208,349 $ 30,973 $ 55,728 Reconciliation of fair value of plan assets Fair value of plan assets at beginning of year $ 157,644 $ 128,430 $ — $ — Actual return on plan assets (4,366 ) 22,225 — — Employer contributions 16,400 11,396 1,509 1,331 Benefit payments (4,859 ) (4,407 ) (1,509 ) (1,331 ) Fair value of plan assets at end of year $ 164,819 $ 157,644 $ — $ — Funded status at end of year $ (37,337 ) $ (50,705 ) $ (30,973 ) $ (55,728 ) (1) For the pension plan, the benefit obligation is the projected benefit obligation. For the post-retirement benefit plan, the benefit obligation is the accumulated post-retirement benefit obligation. Our accumulated pension benefit obligation was $183,317 and $184,436 at December 31, 2018 and 2017 , respectively. The following table displays the effect that the unrecognized prior service cost and unrecognized actuarial loss of our plans had on accumulated other comprehensive income ("AOCI"), as reported in the accompanying Consolidated Balance Sheets: Pension Benefits Post-retirement Benefits Years Ended December 31 2018 2017 2018 2017 Amounts recognized in AOCI Unrecognized prior service cost $ — $ — $ (37,631 ) $ (26,880 ) Unrecognized actuarial (gain) loss 53,616 60,571 10,786 25,235 Total amounts recognized in AOCI $ 53,616 $ 60,571 $ (26,845 ) $ (1,645 ) We anticipate amortization of the net actuarial losses for our pension plan in 2019 to be $3,603 . We anticipate amortization of the net actuarial losses for our post-retirement benefit plan in 2019 to be $894 . Net Periodic Benefit Cost The components of the net periodic benefit cost for our pension and post-retirement benefit plans are as follows: Pension Plan Post-retirement Benefit Plan Years Ended December 31, 2018 2017 2016 2018 2017 2016 Net periodic benefit cost Service cost $ 8,701 $ 6,857 $ 6,490 $ 2,998 $ 2,021 $ 3,728 Interest cost 7,500 7,060 6,654 2,009 1,927 3,015 Expected return on plan assets (10,502 ) (9,650 ) (7,952 ) — — — Amortization of prior service cost — — — (5,409 ) (5,409 ) — Amortization of net loss 4,287 3,562 3,968 2,355 1,846 1,518 Net periodic benefit cost $ 9,986 $ 7,829 $ 9,160 $ 1,953 $ 385 $ 8,261 A portion of the service cost component of net periodic pension and postretirement benefit costs are capitalized and amortized as part of deferred acquisition costs and is included in the income statement line titled "amortization of deferred policy acquisition costs." The portion not related to the compensation and the other components of net periodic pension and postretirement benefit costs are included in the income statement line titled "other underwriting expenses." Projected Benefit Payments The following table summarizes the expected benefits to be paid from our plans over the next 10 years : 2019 2020 2021 2022 2023 2024 - 2028 Pension benefits $ 6,280 $ 6,870 $ 7,570 $ 8,230 $ 8,940 $ 55,930 Post-retirement benefits $ 960 $ 1,030 $ 1,120 $ 1,210 $ 1,300 $ 8,480 Profit-Sharing Plan We have a profit-sharing plan in which employees who meet service requirements are eligible to participate. The amount of our contribution is discretionary and is determined annually, but cannot exceed the amount deductible for federal income tax purposes. Our contribution to the profit-sharing plan for 2018 , 2017 and 2016 , was $7,607 , $4,987 and $2,904 |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION Non-Qualified Employee Stock Award Plan The United Fire Group, Inc. 2008 Stock Plan (the "2008 Stock Plan") authorized the issuance of restricted and unrestricted stock awards, stock appreciation rights, incentive stock options, and non-qualified stock options for up to 1,900,000 shares of United Fire common stock to employees. In May 2014, the Registrant's shareholders approved an additional 1,500,000 shares of United Fire common stock issuable at any time and from time to time pursuant to the 2008 Stock Plan, among other amendments, and renamed such plan as the United Fire Group, Inc. Stock Plan (as amended, the "Stock Plan"). At December 31, 2018 , there were 890,857 authorized shares remaining available for future issuance. The Stock Plan is administered by the Board of Directors, which determines those employees who will receive awards, when awards will be granted, and the terms and conditions of the awards. The Board of Directors may also take any action it deems necessary and appropriate for the administration of the Stock Plan. Pursuant to the Stock Plan, the Board of Directors may, at its sole discretion, grant awards to our employees who are in positions of substantial responsibility with United Fire. Options granted pursuant to the Stock Plan are granted to buy shares of United Fire's common stock at the market value of the stock on the date of grant. Options granted prior to March 2017 vest and are exercisable in installments of 20.0 percent of the number of shares covered by the option award each year from the grant date, unless the Board of Directors authorizes the acceleration of vesting. Options granted after March 2017 vest and are exercisable in installments of 33.3 percent of the number of shares covered by the option award each year from the grant date, unless the Board of Directors authorizes the acceleration of vesting. To the extent not exercised, vested option awards accumulate and are exercisable by the awardee, in whole or in part, in any subsequent year included in the option period, but not later than 10 years from the grant date. Restricted and unrestricted stock awards granted pursuant to the Stock Plan are granted at the market value of our common stock on the date of the grant. Restricted stock awards fully vest after 3 years or 5 years from the date of issuance, unless accelerated upon the approval of the Board of Directors, at which time United Fire common stock will be issued to the awardee. All awards are generally granted free of charge to the eligible employees of United Fire as designated by the Board of Directors. The activity in the Stock Plan is displayed in the following table: Authorized Shares Available for Future Award Grants Year Ended December 31, 2018 From Inception to December 31, 2018 Beginning balance 996,828 1,900,000 Additional shares authorized — 1,500,000 Number of awards granted (151,096 ) (3,023,067 ) Number of awards forfeited or expired 45,125 513,924 Ending balance 890,857 890,857 Number of option awards exercised 238,719 1,324,614 Number of unrestricted stock awards granted 900 9,370 Number of restricted stock awards vested 20,025 58,193 Non-Qualified Non-Employee Director Stock Option and Restricted Stock Plan The United Fire Group, Inc. 2005 Non-Qualified Non-Employee Director Stock Option and Restricted Stock Plan (the "Director Plan") authorizes the issuance of restricted stock awards and non-qualified stock options to purchase shares of United Fire's common stock to non-employee directors. At December 31, 2018 , we had 49,163 authorized shares available for future issuance. The Board of Directors has the authority to determine which non-employee directors receive awards, when options and restricted stock shall be granted, the option price, the option expiration date, the date of grant, the vesting schedule of options or whether the options shall be immediately vested, the terms and conditions of options and restricted stock (other than those terms and conditions set forth in the plan) and the number of shares of common stock to be issued pursuant to an option agreement or restricted stock agreement (subject to limits set forth in the plan). The Board of Directors may also take any action it deems necessary and appropriate for the administration of the Director Plan. The activity in the Director Plan is displayed in the following table: Authorized Shares Available for Future Award Grants Year Ended December 31, 2018 From Inception to December 31, 2018 Beginning balance 61,813 300,000 Number of awards granted (12,650 ) (274,840 ) Number of awards forfeited or expired — 24,003 Ending balance 49,163 49,163 Number of option awards exercised 28,680 117,961 Number of restricted stock awards vested 17,269 71,541 Stock-Based Compensation Expense In 2018 , 2017 and 2016 , we recognized stock-based compensation expense of $5,249 , $4,808 and $3,696 , respectively. Stock-based compensation expense is recognized over the vesting period of the stock options. As of December 31, 2018 , we had $6,803 in stock-based compensation expense that has yet to be recognized through our results of operations. We expect this compensation to be recognized in subsequent years according to the following table, except with respect to awards that are accelerated by the Board of Directors, in which case we will recognize any remaining compensation expense in the period in which the awards are accelerated. 2019 $ 3,939 2020 2,289 2021 537 2022 38 2023 — Total $ 6,803 Analysis of Award Activity The analysis below details the option award activity for 2018 and the awards outstanding at December 31, 2018 , for both of our plans and ad hoc options, which were granted prior to the adoption of the other plans: Options Shares Weighted-Average Exercise Price Weighted-Average Remaining Life (in years) Aggregate Intrinsic Value Outstanding at January 1, 2018 1,101,051 $ 31.16 Granted 85,517 45.03 Exercised (267,399 ) 28.30 Forfeited (20,266 ) 35.27 Expired (1,000 ) 34.39 Outstanding at December 31, 2018 897,903 $ 33.24 6.20 $ 19,944 Exercisable at December 31, 2018 458,465 $ 28.92 5.09 $ 12,162 Intrinsic value is the difference between our share price on the last day of trading (i.e., December 31, 2018 ) and the price of the options when granted and represents the value that would have been received by option holders had they exercised their options on that date. These values change based on the fair market value of our shares. The intrinsic value of options exercised totaled $5,850 , $3,159 and $4,339 in 2018 , 2017 and 2016 , respectively. The analysis below details the award activity for the restricted stock and restricted stock unit awards outstanding at December 31, 2018 : Restricted stock awards Shares Weighted-Average Grant Date Fair Value Non-vested at January 1, 2018 267,799 $ 36.66 Granted 79,739 46.02 Vested (40,362 ) 33.95 Forfeited (23,201 ) 33.86 Non-vested at December 31, 2018 283,975 $ 39.90 In 2018 , 2017 and 2016 we recognized $3,877 , $2,987 and $1,766 , respectively, in compensation expense related to the restricted stock and restricted stock unit awards. At December 31, 2018 , we had $ 4,589 in compensation expense that has yet to be recognized through our results of operations related to the restricted stock and restricted stock unit awards. The intrinsic value of the non-vested restricted stock and restricted stock unit awards outstanding totaled $15,746 and $12,206 at December 31, 2018 and 2017 , respectively. Assumptions The weighted-average grant-date fair value of the options granted under our plans has been estimated using the Black-Scholes option pricing model with the following weighted-average assumptions: December 31, 2018 2017 2016 Risk-free interest rate 2.79 % 2.23 % 1.53 % Expected volatility 21.79 % 27.58 % 25.44 % Expected option life (in years) 7 7 7 Expected dividends (in dollars) $ 1.12 $ 1.00 $ 0.88 Weighted-average grant-date fair value of options granted during the year (in dollars) $ 8.90 $ 9.93 $ 8.42 The following table summarizes information regarding the stock options outstanding and exercisable at December 31, 2018 : Options Outstanding Options Exercisable Range of Exercise Prices Number Outstanding (in shares) Weighted-Average Remaining Contractual Life (in years) Weighted-Average Exercise Price Number Exercisable (in shares) Weighted-Average Exercise Price $ 15.01 - 21.00 58,349 2.20 $ 20.34 58,349 $ 20.34 21.01 - 28.00 93,155 3.54 23.32 93,155 23.32 28.01 - 35.00 375,096 5.71 29.29 227,304 29.32 35.01 - 43.00 287,910 7.65 40.79 79,657 40.64 44.80 - 44.80 80,712 9.15 44.80 — — 52.16 - 52.16 2,681 9.37 52.16 — $ — $ 15.01 - 52.16 897,903 6.20 $ 33.24 458,465 $ 28.92 |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION On September 19, 2017, the Company announced that it had agreed to sell its subsidiary, United Life, to Kuvare. The sale closed on March 30, 2018. As a result, our life insurance business was considered held for sale and reported as discontinued operations in the Consolidated Financial Statements and all comparable prior periods have been presented to conform to the current year presentation. For more information, refer to Note 17. "Discontinued Operations." Prior to the announcement to sell United Life, we had two reportable business segments in our operations: property and casualty insurance and life insurance. The property and casualty insurance business has six domestic locations from which it conducts its business. The life insurance business operated from our home office. Because all of our insurance is sold domestically, we have no revenues allocable to foreign operations. After the announcement of the sale of United Life, our continuing operations, the property and casualty insurance business, is reported as one reportable segment. The property and casualty insurance business profit or loss is consistent with consolidated reporting as disclosed on the Consolidated Statements of Income and Comprehensive Income. We analyze the property and casualty insurance business results based on profitability (i.e., loss ratios), expenses and return on equity. The Company's property and casualty insurance business was determined using a management approach to make decisions on operating matters, including allocating resources, assessing performance, determining which products to market and sell, determining distribution networks with insurance agents and monitoring the regulatory environment. The property and casualty insurance business products have similar economic characteristics and use a similar marketing and distribution strategy with our independent agents. The property and casualty insurance business geographic concentration did not change after the announcement of the sale of the life insurance business. We will continue to evaluate our continuing operations on the basis of both statutory accounting principles prescribed or permitted by our states of domicile and GAAP. The accounting policies of our businesses are the same as those described in Note 1 to our Consolidated Financial Statements. We analyze results based on profitability (i.e., loss ratios), expenses and return on equity. Property and Casualty Insurance Business We write both commercial and personal lines of property and casualty insurance. We focus on our commercial lines, which represented 93.1% of our property and casualty insurance premiums earned for 2018 . Our personal lines represented 6.9% of our property and casualty insurance premiums earned for 2018 . Products Our primary commercial policies are tailored business packages that include the following coverages: fire and allied lines, other liability, automobile, workers' compensation and surety. Our personal lines consist primarily of automobile and fire and allied lines coverage, including homeowners. Pricing Pricing levels for our property and casualty insurance products are influenced by many factors, including an estimation of expected losses, the expenses of producing, issuing and servicing business and managing claims, the time value of money associated with such loss and expense cash flows, and a reasonable allowance for profit. We have a disciplined approach to underwriting and risk management that emphasizes profitable growth rather than premium volume or market share. Our insurance company subsidiaries are subject to state laws and regulations regarding rate and policy form approvals. The applicable state laws and regulations establish standards in certain lines of business to ensure that rates are not excessive, inadequate, unfairly discriminatory, or used to engage in unfair price competition. Our ability to increase rates and the relative timing of the process are dependent upon each respective state's requirements, as well as the competitive market environment. Seasonality Our property and casualty insurance business experiences some seasonality with regard to premiums written, which are generally highest in January and July and lowest during the fourth quarter. Although we experience some seasonality in our premiums written, premiums are earned ratably over the period of coverage. Losses and loss settlement expenses incurred tend to remain consistent throughout the year, with the exception of catastrophe losses which generally are highest in the second and third quarters. Catastrophes inherently are unpredictable and can occur at any time during the year from man-made or natural disaster events that include, but are not limited to, hail, tornadoes, hurricanes and windstorms. Premiums Earned The following table sets forth our net premiums earned: Years Ended December 31, 2018 2017 2016 Continuing Operations - Property and casualty insurance business Net premiums earned Other liability $ 311,931 $ 306,480 $ 289,982 Fire and allied lines 276,193 270,716 265,221 Automobile 313,521 277,511 239,216 Workers' compensation 95,203 104,166 103,605 Fidelity and surety 24,437 24,981 22,507 Reinsurance assumed 13,228 10,650 12,765 Other 2,938 2,988 2,835 Total net premiums earned from continuing operations $ 1,037,451 $ 997,492 $ 936,131 Discontinued Operations - Life insurance business Net premiums earned Ordinary life (excluding universal life) $ 7,068 $ 35,388 $ 63,668 Universal life policy fees 3,363 13,145 11,577 Immediate annuities with life contingencies 2,515 11,691 10,533 Accident and health 45 1,096 1,434 Other 12 48 58 Total net premiums earned from discontinued operations $ 13,003 $ 61,368 $ 87,270 |
QUARTERLY SUPPLEMENTARY FINANCI
QUARTERLY SUPPLEMENTARY FINANCIAL INFORMATION (UNAUDITED) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Data [Abstract] | |
QUARTERLY SUPPLEMENTARY FINANCIAL INFORMATION (UNAUDITED) | QUARTERLY SUPPLEMENTARY FINANCIAL INFORMATION (UNAUDITED) The following table sets forth our selected unaudited quarterly financial information from continuing operations: (In Thousands Except Share Data) Quarters First Second Third Fourth Total Year Ended December 31, 2018 Total revenues $ 250,795 $ 275,399 $ 291,910 $ 252,062 $ 1,070,166 Income (loss) before income taxes 21,573 (1,809 ) 12,598 (41,512 ) (9,150 ) Net income (loss) $ 20,364 $ 157 $ 11,070 $ (29,336 ) $ 2,255 Basic earnings per share (1) $ 0.82 $ 0.01 $ 0.44 $ (1.17 ) $ 0.09 Diluted earnings per share (1) 0.80 0.01 0.43 (1.17 ) 0.09 Year Ended December 31, 2017 Total revenues $ 251,278 $ 258,487 $ 269,617 $ 273,355 $ 1,052,737 Income (loss) before income taxes 23,006 (4,331 ) (32,394 ) 29,369 15,650 Net income (loss) $ 18,584 $ 109 $ (19,082 ) $ 45,259 $ 44,870 Basic earnings per share (1) $ 0.73 — $ (0.77 ) $ 1.81 $ 1.79 Diluted earnings per share (1) 0.72 — (0.77 ) 1.78 1.75 (1) The sum of the quarterly reported amounts may not equal the full year, as each is computed independently. The following table sets forth our selected unaudited quarterly financial information from discontinued operations: (In Thousands Except Share Data) Quarters First Second Third Fourth Total Year Ended December 31, 2018 Total revenues $ 24,755 $ — $ — $ — $ 24,755 Income (loss) before income taxes (1,349 ) — — — (1,349 ) Net income (loss) $ (1,912 ) $ — $ — $ — $ (1,912 ) Basic earnings per share (1) $ (0.08 ) $ — $ — $ — $ (0.08 ) Diluted earnings per share (1) (0.07 ) — — — (0.07 ) Year Ended December 31, 2017 Total revenues $ 31,781 $ 28,492 $ 27,054 $ 28,386 $ 115,713 Income before income taxes 2,083 4,386 1,880 2,294 10,643 Net income $ 1,352 $ 2,849 $ 1,218 $ 734 $ 6,153 Basic earnings per share (1) $ 0.05 $ 0.11 $ 0.05 $ 0.03 $ 0.24 Diluted earnings per share (1) 0.05 0.11 0.05 0.03 0.24 (1) |
EARNINGS PER COMMON SHARE
EARNINGS PER COMMON SHARE | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
EARNINGS PER COMMON SHARE | EARNINGS PER COMMON SHARE Basic earnings per share is computed by dividing net income by the weighted-average number of common shares outstanding during the reporting period. Diluted earnings per share gives effect to all dilutive common shares outstanding during the reporting period. The dilutive shares we consider in our diluted earnings per share calculation relate to our outstanding stock options and restricted stock awards. We determine the dilutive effect of our outstanding stock options using the "treasury stock" method. Under this method, we assume the exercise of all of the outstanding stock options whose exercise price is less than the weighted-average market value of our common stock during the reporting period. This method also assumes that the proceeds from the hypothetical stock option exercises are used to repurchase shares of our common stock at the weighted-average market value of the stock during the reporting period. The net of the assumed stock optio ns exercised and assumed common shares repurchased represents the number of dilutive common shares, which we add to the denominator of the earnings per share calculation. The components of basic and diluted earnings per share were as follows: Years Ended December 31, 2018 2017 2016 (In Thousands Except Share and Per Share Data) Basic Diluted Basic Diluted Basic Diluted Net income from continuing operations $ 2,255 $ 2,255 $ 44,870 $ 44,870 $ 49,118 $ 49,118 Weighted-average common shares outstanding 25,006,211 25,006,211 25,103,720 25,103,720 25,335,706 25,335,706 Add dilutive effect of restricted stock awards — 273,544 — 250,530 — 155,059 Add dilutive effect of stock options — 343,057 — 286,354 — 313,913 Weighted-average common shares 25,006,211 25,622,812 25,103,720 25,640,604 25,335,706 25,804,678 Earnings per common share from continuing operations $ 0.09 $ 0.09 $ 1.79 $ 1.75 $ 1.94 $ 1.90 Earnings (loss) per common share from discontinued operations (0.08 ) (0.07 ) 0.24 0.24 0.03 0.03 Gain on sale of discontinued operations, net of taxes $ 1.10 $ 1.07 $ — $ — $ — $ — Earnings per common share $ 1.11 $ 1.08 $ 2.03 $ 1.99 $ 1.97 $ 1.93 Awards excluded from diluted calculation (1) — 2,681 — — — — (1) |
LEASE COMMITMENTS
LEASE COMMITMENTS | 12 Months Ended |
Dec. 31, 2018 | |
Leases [Abstract] | |
LEASE COMMITMENTS | LEASE COMMITMENTS At December 31, 2018 , we were obligated under noncancelable operating lease agreements for office space, vehicles, computer equipment and office equipment. Most of our leases include renewal options, purchase options or both. These provisions may be exercised by us upon the expiration of the related lease agreements. Rental expense under our operating lease agreements was $6,644 , $7,197 and $6,908 for 2018 , 2017 and 2016 , respectively. Our most significant lease commitment is for mainframe computer equipment. This lease was signed in November 2016 and has a term of 5 years . The monthly lease payments for this lease are $154 . At December 31, 2018 , our future minimum rental payments were as follows: 2019 $ 7,214 2020 6,892 2021 4,635 2022 1,717 2023 1,043 Thereafter 181 Total $ 21,682 |
CREDIT FACILITY
CREDIT FACILITY | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
CREDIT FACILITY | CREDIT FACILITY On February 2, 2016, the Company, as borrower, entered into a Credit Agreement (the "Credit Agreement") by and among the Company, with the lenders from time to time party thereto and KeyBank National Association ("Key Bank"), as administrative agent, swingline lender and letter of credit issuer. The Credit Agreement provides for a $50,000 four -year unsecured revolving credit facility that includes a $20,000 letter of credit subfacility and a swingline subfacility in the amount up to $5,000 . The Credit Agreement allows the Company to increase the aggregate amount of the commitments thereunder by up to $100,000 , provided that no event of default has occurred and is continuing and certain other conditions are satisfied. The Credit Agreement is available for the Company's general corporate purposes, including liquidity, acquisitions and working capital. All unpaid principal and accrued interest under the Credit Agreement is due and payable in full at maturity on February 2, 2020. Based on the type of loan, advances under the Credit Agreement would bear interest on either the London interbank offered rate ("LIBOR") or a base rate plus, in each case, a calculated margin amount. The unused commitments under the Credit Agreement will be subject to a commitment fee that will be calculated at a per annum rate. The applicable margins for borrowings under the Credit Agreement and the commitment fee thereunder will be determined by reference to a pricing grid based on the Company’s issuer credit rating by A.M. Best Company, Inc. The Credit Agreement contains customary representations, conditions to borrowing, covenants and events of default, including certain covenants that limit or restrict, subject to certain exceptions, the ability of the Company and its subsidiaries to sell or transfer assets, enter into a merger or consolidate with another company, create liens, impose restrictions on subsidiary dividends, enter into sale-leaseback transactions, make investments or acquisitions, enter into certain reinsurance agreements, pay dividends during any period of default, enter into transactions with affiliates, change the nature of its business, or incur indebtedness. The Credit Agreement also includes financial covenants that require the Company to (i) maintain a minimum consolidated net worth, (ii) maintain a minimum consolidated statutory surplus and (iii) not exceed a 0.35 to 1.0 debt to total capitalization ratio. As of December 31, 2018 we were in compliance with all covenants of the Credit Agreement. There was no outstanding balance on the Credit Agreement at December 31, 2018 or 2017 . We did no t incur any interest expense related to the Credit Agreement in 2018 , 2017 or under our prior credit facility in 2016 |
INTANGIBLE ASSETS
INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS | INTANGIBLE ASSETS The carrying value of our goodwill was $15,091 at both December 31, 2018 and 2017 , respectively. The goodwill is fully allocated to our property and casualty insurance business. Our major classes of intangible assets are presented in the following table: Year Ended December 31, 2018 2017 Agency relationships $ 10,338 $ 10,338 Accumulated amortization - agency relationships (6,153 ) (5,566 ) $ 4,185 $ 4,772 Software $ 3,260 $ 3,260 Accumulated amortization - software (3,260 ) (3,260 ) $ — $ — Trade names $ 1,978 $ 1,978 Accumulated amortization - trade names (1,022 ) (890 ) $ 956 $ 1,088 Favorable contract $ 286 $ 286 Accumulated amortization - favorable contract (286 ) (286 ) $ — $ — State insurance licenses (1) $ 3,020 $ 3,020 Net intangible assets $ 8,161 $ 8,880 (1) The intangible asset for licenses has an indefinite life and therefore is not amortized. The estimated useful lives assigned to our major classes of amortizable intangible assets are as follows: Useful Life Agency relationships Fifteen years Software Two years Trade names Fifteen years Favorable contract Two years Our estimated aggregate amortization expense for each of the next five years is as follows: 2019 $ 709 2020 709 2021 709 2022 709 2023 709 |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME | ACCUMULATED OTHER COMPREHENSIVE INCOME The following table shows the changes in the components of our accumulated other comprehensive income (loss), net of tax, for the years ended December 31, 2018 , 2017 and 2016 : Liability for Net unrealized underfunded appreciation employee on investments benefit costs Total Balance as of January 1, 2016 $ 128,369 $ (47,932 ) $ 80,437 Change in accumulated other comprehensive income before reclassifications 8,461 19,529 27,990 Reclassification adjustments from accumulated other comprehensive income (2,938 ) 3,566 628 Balance as of December 31, 2016 $ 133,892 $ (24,837 ) $ 109,055 Change in accumulated other comprehensive income before reclassifications 48,467 (19,878 ) 28,589 Reclassification adjustments from accumulated other comprehensive income (4,152 ) 3,514 (638 ) Accumulated effect of change in enacted tax rate 36,658 (5,350 ) 31,308 Balance as of December 31, 2017 $ 214,865 $ (46,551 ) $ 168,314 Cumulative effect of change in accounting principle (191,244 ) (191,244 ) Change in accumulated other comprehensive income before reclassifications (33,564 ) 20,155 (13,409 ) Reclassification adjustments from accumulated other comprehensive income 620 5,247 5,867 Balance as of December 31, 2018 $ (9,323 ) $ (21,149 ) $ (30,472 ) |
DISCONTINUED OPERATIONS
DISCONTINUED OPERATIONS | 12 Months Ended |
Dec. 31, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
DISCONTINUED OPERATIONS | DISCONTINUED OPERATIONS On September 18, 2017, we signed a definitive agreement to sell our subsidiary, United Life Insurance Company, to Kuvare for $280,000 in cash, less a $21 adjustment as set forth in the definitive agreement, for a net amount of $279,979 . The sale closed on March 30, 2018 and we reported an after-tax gain on the sale of discontinued operations of $27,307 . The life insurance business (previously reported as a separate segment) was considered held for sale and reported as discontinued operations and its financial position, results of operations and cash flows were reported separately for all periods presented, as applicable, unless otherwise noted. UFG has agreed to provide services to Kuvare through a transition services agreement ("TSA"). The TSA ensures a seamless transfer of the business between UFG and Kuvare. The TSA includes, among other considerations, accounting management, human resources, legal and information technology services, from the closing date for up to 24 months. Since the close date, the Company has received $414 as part of the TSA agreement. The assets and liabilities associated with discontinued operations prior to the closing of the sale have been presented separately in our Consolidated Balance Sheets. The major assets and liability categories were as follows as of the dates indicated: Discontinued Operations Balance Sheets December 31, (In Thousands, Except Share Data) 2018 2017 Assets Investments Fixed maturities Held-to-maturity, at amortized cost (fair value $0 in 2018 and $34 in 2017) $ — $ 34 Available-for-sale, at fair value (amortized cost $0 in 2018 and $1,412,291 in 2017) — 1,430,025 Equity Securities available-for-sale, at fair value (cost $0 in 2018 and $5,099 in 2017) — 23,653 Mortgage loans — 3,435 Policy loans — 5,815 Other long-term investments — 16,437 — 1,479,399 Cash and cash equivalents — 15,851 Deferred policy acquisition costs — 71,151 Other assets — 19,733 Total assets held for sale $ — $ 1,586,134 Liabilities Future policy benefits and losses $ — $ 1,320,401 Deferred income taxes — 18,716 Accrued expenses and other liabilities — 8,018 Total liabilities held for sale $ — $ 1,347,135 Summary operating results of discontinued operations were as follows for the periods indicated: Discontinued Operations Statements of Income For the Years Ended December 31, (In Thousands, Except Share Data) 2018 2017 2016 Revenues Net premiums earned $ 13,003 $ 61,368 $ 87,270 Investment income, net of investment expenses 12,663 49,720 51,538 Total net realized investment gains (losses) (1,057 ) 4,008 1,156 Other income 146 617 621 Total revenues $ 24,755 $ 115,713 $ 140,585 Benefits, Losses and Expenses Losses and loss settlement expenses $ 10,823 $ 40,451 $ 31,365 Increase in liability for future policy benefits 5,023 27,632 59,969 Amortization of deferred policy acquisition costs 1,895 5,181 8,121 Other underwriting expenses 3,864 13,281 19,881 Interest on policyholders’ accounts 4,499 18,525 20,079 Total benefits, losses and expenses $ 26,104 $ 105,070 $ 139,415 Income (loss) from discontinued operations before income taxes $ (1,349 ) $ 10,643 $ 1,170 Federal income tax expense 563 4,490 384 Net income (loss) from discontinued operations $ (1,912 ) $ 6,153 $ 786 Earnings per common share from discontinued operations: Basic $ (0.08 ) $ 0.24 $ 0.03 Diluted (0.07 ) 0.24 0.03 |
Schedule I. Summary of Investme
Schedule I. Summary of Investments - Other than Investments in Related Parties | 12 Months Ended |
Dec. 31, 2018 | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Abstract] | |
Schedule I. Summary of Investments - Other than Investments in Related Parties | Schedule I. Summary of Investments — Other than Investments in Related Parties December 31, 2018 (In thousands) Cost or Amortized Cost Amounts at Which Shown in Balance Sheet Type of Investment Fair Value Fixed maturities Bonds United States Government and government agencies and authorities $ 243,167 $ 242,100 $ 242,100 States, municipalities and political subdivisions 939,068 936,060 936,060 Foreign governments 9,698 9,716 9,716 Public utilities 56,808 56,059 56,059 All other bonds 520,803 516,044 516,044 Redeemable preferred stock 3,022 2,749 2,749 Total fixed maturities $ 1,772,566 $ 1,762,728 $ 1,762,728 Equity securities Common stocks Public utilities $ 4,226 $ 15,949 $ 15,949 Banks, trusts and insurance companies 13,737 101,555 101,555 Industrial, miscellaneous and all other 41,430 125,206 125,206 Nonredeemable preferred stocks 5,426 5,651 5,651 Total equity securities $ 64,819 $ 248,361 $ 248,361 Mortgage loans on real estate $ 25,828 $ 26,021 $ 25,782 Other long-term investments 37,077 37,077 37,077 Short-term investments 175 175 175 Total investments $ 1,900,465 $ 2,074,362 $ 2,074,123 |
Schedule II. Condensed Financia
Schedule II. Condensed Financial Statements of Parent Company | 12 Months Ended |
Dec. 31, 2018 | |
Condensed Financial Information Disclosure [Abstract] | |
Schedule II. Condensed Financial Statements of Parent Company | Schedule II. Condensed Financial Statements of Parent Company United Fire Group, Inc. (parent company only) Condensed Balance Sheets December 31, (In thousands, except share data) 2018 2017 Assets Fixed maturities Held-to-maturity, at amortized cost (fair value $0 in 2018 and $150 in 2017) $ — $ 150 Available-for-sale, at fair value (amortized cost $150 in 2018 and $0 in 2017) 150 — Investment in subsidiary 877,893 967,590 Cash and cash equivalents 9,186 4,537 Federal income tax receivable 1,165 1,095 Accrued investment income 1 1 Total assets $ 888,395 $ 973,373 Liabilities and stockholders' equity Liabilities $ 20 $ — Stockholders' equity Common stock, $0.001 par value, authorized 75,000,000 shares; 25,097,408 and 24,916,806 issued and outstanding in 2018 and 2017, respectively $ 25 $ 25 Additional paid-in capital 203,350 196,334 Retained earnings 715,472 608,700 Accumulated other comprehensive income, net of tax (30,472 ) 168,314 Total stockholders' equity $ 888,375 $ 973,373 Total liabilities and stockholders' equity $ 888,395 $ 973,373 This condensed financial information should be read in conjunction with the Consolidated Financial Statements and Notes included in Part II, Item 8 of this Annual Report on Form 10-K. Schedule II. Condensed Financial Statements of Parent Company (continued) United Fire Group, Inc. (parent company only) Condensed Statements of Income and Comprehensive Income For the Years Ended December 31, (In thousands) 2018 2017 2016 Revenues Investment income $ 396 $ 133 $ 66 Total revenues 396 133 66 Expenses Other operating expenses $ 95 $ 103 $ 73 Total expenses 95 103 73 Income (loss) before income taxes and equity in net income of subsidiary 301 30 (7 ) Federal income tax benefit (1,165 ) (1,060 ) (3 ) Net income (loss) before equity in net income of subsidiary $ 1,466 $ 1,090 $ (4 ) Equity in net income of subsidiary 26,184 49,933 49,908 Net income $ 27,650 $ 51,023 $ 49,904 Other comprehensive income (loss) Change in unrealized appreciation on investments held by subsidiary $ (50,985 ) $ 72,251 $ 13,017 Change in liability for underfunded employee benefit plans of subsidiary 25,513 (26,122 ) 30,045 Other comprehensive income (loss), before tax and reclassification adjustments $ (25,472 ) $ 46,129 $ 43,062 Income tax effect 5,349 (17,540 ) (15,072 ) Other comprehensive income (loss), after tax, before reclassification adjustments $ (20,123 ) $ 28,589 $ 27,990 Reclassification adjustment for net realized gains of the subsidiary included in income 784 (6,390 ) (4,520 ) Reclassification adjustment for employee benefit costs of the subsidiary included in expense 6,642 5,408 5,486 Total reclassification adjustments, before tax $ 7,426 $ (982 ) $ 966 Income tax effect (1,559 ) 344 (338 ) Total reclassification adjustments, after tax $ 5,867 $ (638 ) $ 628 Comprehensive income $ 13,394 $ 78,974 $ 78,522 United Fire Group, Inc. and its subsidiaries file a consolidated federal income tax return. The federal income tax provision represents an allocation under its tax allocation agreements. This condensed financial information should be read in conjunction with the Consolidated Financial Statements and Notes included in Part II, Item 8 of this Annual Report on Form 10-K. Schedule II. Condensed Financial Statements of Parent Company (continued) United Fire Group, Inc. (parent company only) Condensed Statements of Cash Flows For the Years Ended December 31, (In thousands) 2018 2017 2016 Cash flows from operating activities Net income $ 27,650 $ 51,023 $ 49,904 Adjustments to reconcile net income to net cash provided by operating activities Equity in net income of subsidiary (26,184 ) (49,933 ) (49,908 ) Dividends received from subsidiary 105,000 40,000 24,000 Other, net 1,824 1,415 2,995 Total adjustments $ 80,640 $ (8,518 ) $ (22,913 ) Net cash provided by operating activities $ 108,290 $ 42,505 $ 26,991 Cash flows from investing activities Proceeds from maturity of held-to-maturity investments $ — $ 150 $ — Purchase of held-to-maturity investments — (150 ) — Net cash used in investing activities $ — $ — $ — Cash flows from financing activities Payment of cash dividends $ (105,408 ) $ (27,337 ) $ (24,591 ) Repurchase of common stock (5,404 ) (29,784 ) (3,746 ) Issuance of common stock 7,171 4,828 9,922 Tax impact from issuance of common stock — — (816 ) Net cash used in financing activities $ (103,641 ) $ (52,293 ) $ (19,231 ) Net change in cash and cash equivalents $ 4,649 $ (9,788 ) $ 7,760 Cash and cash equivalents at beginning of period 4,537 14,325 6,565 Cash and cash equivalents at end of year $ 9,186 $ 4,537 $ 14,325 |
Schedule III. Supplementary Ins
Schedule III. Supplementary Insurance Information | 12 Months Ended |
Dec. 31, 2018 | |
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Abstract] | |
Schedule III. Supplementary Insurance Information | Schedule III. Supplementary Insurance Information (In thousands) Deferred Policy Acquisition Costs Future Policy Benefits, Losses, Claims and Loss Expenses Unearned Premiums Earned Premium Revenue Investment Income, Net Benefits, Claims, Losses and Settlement Expenses Amortization of Deferred Policy Acquisition Costs Other Underwriting Expenses Interest on Policyholders' Accounts Premiums Written (2) Year Ended December 31, 2018 Continuing Operations $ 92,796 $ 1,312,483 $ 492,918 $ 1,037,451 $ 52,894 $ 731,611 $ 206,232 $ 141,473 $ — $ 1,061,664 Discontinued Operations (1) — — — 13,003 12,663 15,846 1,895 3,864 4,499 — Total $ 92,796 $ 1,312,483 $ 492,918 $ 1,050,454 $ 65,557 $ 747,457 $ 208,127 $ 145,337 $ 4,499 $ 1,061,664 Year Ended December 31, 2017 Continuing Operations $ 88,102 $ 1,224,183 $ 465,391 $ 997,492 $ 51,190 $ 725,713 $ 207,746 $ 103,628 $ — $ 1,019,113 Discontinued Operations (1) 71,151 1,320,401 67 61,368 49,720 68,083 5,181 13,281 18,525 — Total $ 159,253 $ 2,544,584 $ 465,458 $ 1,058,860 $ 100,910 $ 793,796 $ 212,927 $ 116,909 $ 18,525 $ 1,019,113 Year Ended December 31, 2016 Continuing Operations $ 93,362 $ 1,123,896 $ 443,802 $ 936,131 $ 55,284 $ 652,433 $ 202,892 $ 83,540 $ — $ 964,970 Discontinued Operations (1) 70,750 1,350,503 71 87,270 51,538 91,334 8,121 19,881 20,079 — Total $ 164,112 $ 2,474,399 $ 443,873 $ 1,023,401 $ 106,822 $ 743,767 $ 211,013 $ 103,421 $ 20,079 $ 964,970 (1) Annuity deposits are included in future policy benefits, losses, claims and loss expenses. (2) |
Schedule IV. Reinsurance
Schedule IV. Reinsurance | 12 Months Ended |
Dec. 31, 2018 | |
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Abstract] | |
Schedule IV. Reinsurance | Schedule IV. Reinsurance (In thousands) Gross Amount Ceded to Other Companies Assumed From Other Companies Net Amount Percentage of Amount Assumed to Net Earned Year Ended December 31, 2018 Life insurance in force $ — $ — $ — $ — Premiums earned Continuing Operations - Property and casualty insurance $ 1,083,981 $ 63,487 $ 16,957 $ 1,037,451 1.63 % Discontinued Operations - Life, accident and health insurance — — — — — % Total $ 1,083,981 $ 63,487 $ 16,957 $ 1,037,451 1.63 % Year Ended December 31, 2017 Life insurance in force $ 5,309,508 $ 1,014,794 $ — $ 4,294,714 Premiums earned Continuing Operations - Property and casualty insurance $ 1,043,738 $ 61,305 $ 15,059 $ 997,492 1.51 % Discontinued Operations - Life, accident and health insurance 64,090 2,722 — 61,368 — % Total $ 1,107,828 $ 64,027 $ 15,059 $ 1,058,860 1.42 % Year Ended December 31, 2016 Life insurance in force $ 5,314,548 $ 1,023,197 $ — $ 4,291,351 Premiums earned Continuing Operations - Property and casualty insurance $ 977,090 $ 57,996 $ 17,037 $ 936,131 1.82 % Discontinued Operations - Life, accident and health insurance 90,038 2,768 — 87,270 — % Total $ 1,067,128 $ 60,764 $ 17,037 $ 1,023,401 1.66 % |
Schedule V. Valuation and Quali
Schedule V. Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2018 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule V. Valuation and Qualifying Accounts | Schedule V. Valuation And Qualifying Accounts (In thousands) Balance at beginning of period Charged to costs and expenses Deductions Balance at end of period Description Allowance for bad debts Year Ended December 31, 2018 $ 1,255 $ — $ 470 $ 785 Year Ended December 31, 2017 1,255 — — 1,255 Year Ended December 31, 2016 867 388 — 1,255 Deferred tax asset valuation allowance (1) Year Ended December 31, 2018 $ 329 $ — $ 329 $ — Year Ended December 31, 2017 718 — 389 329 Year Ended December 31, 2016 1,265 — 547 718 (1) |
Schedule VI. Supplemental Infor
Schedule VI. Supplemental Information Concerning Property and Casualty Insurance Operations | 12 Months Ended |
Dec. 31, 2018 | |
SEC Schedule, 12-18, Supplemental Information, Property-Casualty Insurance Underwriters [Abstract] | |
Schedule VI. Supplemental Information Concerning Property and Casualty Insurance Operations | Schedule VI. Supplemental Information Concerning Property and Casualty Insurance Operations (In thousands) Affiliation with Registrant: United Fire & Casualty Company and consolidated property and casualty subsidiaries Claims and Claim Adjustment Expenses Incurred Related to: Amortization of Deferred Policy Acquisition Costs (1) Reserves for Unpaid Claims and Claim Adjustment Expenses Net Realized Investment Gains Deferred Policy Acquisition Costs Net Investment Income Paid Claims and Claim Adjustment Expenses Unearned Premiums Earned Premiums Current Year Prior Years Premiums Written 2018 $ 92,796 $ 1,312,483 $ 492,918 $ 1,037,451 $ (20,179 ) $ 52,894 $ 785,778 $ (54,167 ) $ 206,232 $ 640,534 $ 1,061,664 2017 $ 88,102 $ 1,224,183 $ 465,391 $ 997,492 $ 4,055 $ 51,190 $ 779,966 $ (54,253 ) $ 207,746 $ 625,503 $ 1,019,113 2016 $ 93,362 $ 1,123,896 $ 443,802 $ 936,131 $ 4,947 $ 55,284 $ 683,662 $ (31,229 ) $ 202,892 $ 537,573 $ 964,970 |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Discontinued Operations | Discontinued Operations We have historically reported our operations in two business segments: property and casualty insurance and life insurance. On September 18, 2017, the Company signed a definitive agreement to sell its subsidiary, United Life Insurance Company ("United Life"), to Kuvare US Holdings, Inc. ("Kuvare") and on March 30, 2018, the sale closed. As a result, our life insurance business, previously a separate segment, was considered held for sale and reported as discontinued operations in the Consolidated Balance Sheets, Consolidated Statements of Income and Comprehensive Income and Consolidated Statements of Cash Flows (collectively, the "Consolidated Financial Statements"). Subsequent to the announcement of this sale, our continuing operations are reported as one |
Principles of Consolidation | Principles of Consolidation The accompanying Consolidated Financial Statements include United Fire and its wholly owned subsidiaries: United Fire & Casualty Company, United Real Estate Holdings Company, LLC, Addison Insurance Company, Lafayette Insurance Company, United Fire & Indemnity Company, United Fire Lloyds, UFG Specialty Insurance Company, Financial Pacific Insurance Company, Franklin Insurance Company, Mercer Insurance Company, and Mercer Insurance Company of New Jersey, Inc. United Fire Lloyds, an affiliate of United Fire & Indemnity Company, is organized as a Texas Lloyds plan, which is an aggregation of underwriters who, under a common name, engage in the business of insurance through a corporate attorney-in-fact. United Fire Lloyds is financially and operationally controlled by United Fire & Indemnity Company, its corporate attorney-in-fact, pursuant to three types of agreements: trust agreements between United Fire & Indemnity Company and certain individuals who agree to serve as trustees; articles of agreement among the trustees who agree to act as underwriters to establish how the Lloyds plan will be operated; and powers of attorney from each of the underwriters appointing a corporate attorney-in-fact, who is authorized to operate the Lloyds plan. Because United Fire & Indemnity Company can name the trustees, the Lloyds plan is perpetual, subject only to United Fire & Indemnity Company's desire to terminate it. United Fire & Indemnity Company provides all of the statutory capital necessary for the formation of the Lloyds plan by contributing capital to each of the trustees. The trust agreements require the trustees to become underwriters of the Lloyds plan, to contribute the capital to the Lloyds plan, to sign the articles of agreement and to appoint the attorney-in-fact. The trust agreements also require the trustees to pay to United Fire & Indemnity Company all of the profits and benefits received by the trustees as underwriters of the Lloyds plan, which means that United Fire & Indemnity Company has the right to receive 100 percent of the gains and profits from the Lloyds plan. The trustees serve at the pleasure of United Fire & Indemnity Company, which may remove a trustee and replace that trustee at any time. Termination of a trustee must be accompanied by the resignation of the trustee as an underwriter, so that the trustee can obtain the capital contribution from the Lloyds plan to reimburse United Fire & Indemnity Company. By retaining the ability to terminate trustees, United Fire & Indemnity Company possesses the ability to name and remove the underwriters. United Real Estate Holdings, LLC, formed in 2013, is a wholly owned subsidiary of United Fire & Casualty Company and is organized as an Iowa limited liability corporation, an unincorporated association formed for the purpose of holding United Fire & Casualty Company's ownership in commercial real estate. |
Basis of Presentation | Basis of Presentation The accompanying Consolidated Financial Statements have been prepared on the basis of U.S. generally accepted accounting principles ("GAAP"), which differ in some respects from those followed in preparing our statutory reports to insurance regulatory authorities. Our stand-alone subsidiary financial statements submitted to insurance regulatory authorities are presented on the basis of accounting practices prescribed or permitted by the insurance departments of the states in which we are domiciled ("statutory accounting principles"). |
Use of Estimates | Use of EstimatesThe preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The financial statement categories that are most dependent on management estimates and assumptions include: investments; deferred policy acquisition costs; reinsurance receivables and recoverables; future policy benefits and losses, claims and loss settlement expenses; and pension and post-retirement benefit obligations. |
Property and Casualty and Life Insurance Business | Continuing Operations - Property and Casualty Insurance BusinessPremiums written are deferred and recorded as earned premium on a daily pro rata basis over the terms of the respective policies. Unearned premium reserves are established for the portion of premiums written applicable to the unexpired term of insurance policies in force.Discontinued Operations - Life Insurance BusinessOur whole life and term insurance (i.e., traditional business) premiums are reported as earned when due and benefits and expenses are associated with premium income in order to result in the recognition of profits over the lives of the related contracts. |
Premiums Receivable | Premiums receivable are presented net of an estimated allowance for doubtful accounts. Premiums receivable are presented net of an estimated allowance for doubtful accounts, which is based on a periodic evaluation of the aging and collectability of amounts due from agents and policyholders. |
Loss and Loss Settlement Expense Reserves | To establish loss and loss settlement expense reserves, we make estimates and assumptions about the future development of claims. Actual results could differ materially from those estimates, which are subjective, complex and inherently uncertain. When we establish and adjust reserves, we do so given our knowledge at the time of the circumstances and facts of known claims. To the extent that we have overestimated or underestimated our loss and loss settlement expense reserves, we adjust the reserves in the period in which such adjustment is determined. We record our best estimate of reserves for claim litigation that arises in the ordinary course of business. We consider all of our pending litigation as of December 31, 2018 |
Universal Life and Annuity Policies | On universal life and deferred annuity policies (i.e., non-traditional business), income and expenses are reported when charged and credited to policyholder account balances in order to result in recognition of profits over the lives of the related contracts. We accomplish this by means of a provision for future policy benefits and the deferral and subsequent amortization of policy acquisition costs. |
Future Policy Benefits Liability | Liabilities for future policy benefits for traditional products are computed by the net level premium method, using interest assumptions ranging from 3.15 percent to 6.0 percent and withdrawal, mortality and morbidity assumptions appropriate at the time the policies were issued. Liabilities for non-traditional business are stated at policyholder account values before surrender charges. Liabilities for traditional immediate annuities are based primarily upon |
Reinsurance | ReinsurancePremiums earned and losses and loss settlement expenses incurred are reported net of reinsurance ceded. Ceded insurance business is accounted for on a basis consistent with the original policies issued and the terms of the reinsurance contracts. |
Investments | Investments Investments in fixed maturities include bonds and redeemable preferred stocks. Our investments in held-to-maturity fixed maturities are recorded at amortized cost. Our investments in available-for-sale fixed maturities and trading securities are recorded at fair value. In 2018, due to the change in accounting principle adopted on January 1, 2018 described in this section under "Recently Issued Accounting Standards," investments in equity securities, which include common and non-redeemable preferred stocks are recorded at fair value with changes in value recorded as a component of income. Prior to 2018, the change in the fair value of equity securities were held as available-for-sale securities and were reported as a component of accumulated other comprehensive income, net of applicable deferred income taxes, in stockholders' equity. Changes in unrealized appreciation and depreciation, with respect to available-for-sale fixed maturities are reported as a component of accumulated other comprehensive income, net of applicable deferred income taxes, in stockholders' equity. Changes in unrealized appreciation and depreciation, with respect to trading securities, are reported as a component of income. |
Cash and Cash Equivalents | Cash and Cash Equivalents |
Deferred Policy Acquisition Costs | roperty and casualty insurance policy acquisition costs deferred are amortized as premium revenue is recognized. The method followed in computing DAC limits the amount of such deferred costs to their estimated realizable value. This takes into account the premium to be earned, losses and loss settlement expenses expected to be incurred and certain other costs expected to be incurred as the premium is earned. This calculation is performed by line of business in a manner consistent with how the policies are currently being marketed and managed. For the discontinued operations traditional life insurance policies, DAC is amortized to income over the premium-paying period in proportion to the ratio of the expected annual premium revenue to the expected total premium revenue. Expected premium revenue and gross profits are based on the same mortality and withdrawal assumptions used in determining future policy benefits. These assumptions are not revised after policy issuance unless the recorded DAC asset is deemed to be unrecoverable from future expected profits. For the discontinued operations non-traditional life insurance policies, DAC is amortized over the anticipated terms in proportion to the ratio of the expected annual gross profits to the total expected gross profits. Changes in the amount or timing of expected gross profits result in adjustments to the cumulative amortization of these costs. The effect on amortization of DAC for revisions to estimated gross profits is reported in earnings in the period the estimated gross profits are revised. |
Property, Equipment and Depreciation | Property, Equipment and DepreciationProperty and equipment is presented at cost less accumulated depreciation.Expenditures for maintenance and repairs on property and equipment are generally expensed as incurred. We periodically review these assets for impairment whenever events or changes in business circumstances indicate that the carrying value of the underlying asset may not be recoverable. A loss would be recognized if the estimated fair value of the asset were less than its carrying value. Depreciation is computed primarily by the straight-line method over the following estimated useful lives: Useful Life Computer equipment and software Three years Furniture and fixtures Seven years Leasehold improvements Shorter of the lease term or useful life of the asset Real estate Seven to thirty-nine years Airplane Five years |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill and other intangible assets arise as a result of business combinations and consist of the excess of the fair value of consideration paid over the tangible assets acquired and liabilities assumed. All of our goodwill and the majority of our intangible assets relate to the acquisition of Mercer Insurance Group on March 28, 2011. We evaluate goodwill and other intangible assets for impairment at least on an annual basis or whenever events or changes in circumstances indicate that it is more likely than not that the carrying amount of goodwill and other intangible assets may exceed its implied fair value. Goodwill is evaluated at the reporting unit level. Any impairment is charged to operations in the period that the impairment is identified. In 2016 we performed a quantitative impairment assessment of our goodwill and in 2018 and 2017 , we performed a qualitative impairment assessment of our goodwill. As a result of these assessments, we did no t recognize an impairment charge on our goodwill in 2018 , 2017 or 2016 . Our other intangible assets, which consist primarily of agency relationships, trade names, state insurance licenses, and software, are being amortized by the straight-line method over periods ranging from 2 years to 15 years |
Income Taxes | Income Taxes The Tax Cuts and Jobs Act of 2017 (the "Tax Act") was enacted on December 22, 2017. The Tax Act significantly revised the U.S. corporate income tax laws including lowering the U.S. federal corporate tax rate from 35 percent to 21 percent, effective January 1, 2018. In December 2017, the SEC staff issued Staff Accounting Bulletin No. 118, which addresses how a company recognizes provisional amounts when a company does not have the necessary information available, prepared or analyzed in reasonable detail to complete its accounting for the effect of the changes in the Tax Act. The measurement period ends when a company has obtained, prepared and analyzed the information necessary to finalize its accounting, but cannot extend beyond one year. As of December 31, 2018 we have completed accounting for the tax effects of enactment of the Tax Act and no adjustments were made during the measurement period. Deferred tax assets and liabilities are established based on differences between the financial statement bases of assets and liabilities and the tax bases of those same assets and liabilities, using the currently enacted statutory tax rates. Deferred income tax expense is measured by the year-to-year change in the net deferred tax asset or liability, except for certain changes in deferred tax amounts that affect stockholders' equity and do not impact federal income tax expense. The Company performs a quarterly review of its tax positions and makes a determination whether it is more likely than not that the tax position will be sustained upon examination. If, based on this review, it appears not more likely than not that the position will be sustained, the Company will calculate any unrecognized tax benefits and calculate any interest and penalties. At December 31, 2018 , 2017 , and 2016 the Company did no t recognize any liability for unrecognized tax benefits. In addition, we have not accrued for interest and penalties related to unrecognized tax benefits. However, if interest and penalties would need to be accrued related to unrecognized tax benefits, such amounts would be recognized as a component of federal income tax expense. |
Stock-Based Compensation | Stock-Based Compensation We currently have two equity compensation plans. One plan allows us to grant restricted and unrestricted stock, stock appreciation rights, incentive stock options, and non-qualified stock options to employees. The other plan allows us to grant restricted and non-qualified stock options to non-employee directors. |
Comprehensive Income | Comprehensive IncomeComprehensive income includes all changes in stockholders' equity during a period except those resulting from investments by and dividends to stockholders. |
Subsequent Events | Subsequent EventsIn the preparation of the accompanying financial statements, the Company has evaluated all material subsequent events or transactions that occurred after the balance sheet date through the date on which the financial statements were issued for potential recognition or disclosure in the Company's financial statements. |
Recently Issued Accounting Standards and Pending Adoption of Accounting Standards | Recently Issued Accounting Standards Accounting Standards Adopted in 2018 Revenue Recognition In May 2014, the FASB issued comprehensive new guidance on revenue recognition which supersedes nearly all existing revenue recognition guidance under GAAP. The new guidance requires a company to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The standard creates a five-step model that requires companies to exercise judgment when considering the terms of the contract(s) and all relevant facts and circumstances. Insurance contracts are not within the scope of this new guidance. The new guidance is effective for annual and interim periods beginning after December 15, 2017. The Company adopted the guidance as of January 1, 2018. The adoption of the new guidance had no impact on the Company's reporting and disclosure of net premiums earned from insurance contracts, net investment income or net realized gains and losses, as these revenue streams are not within the scope of this new guidance. The remaining revenue streams are immaterial and not impacted by the new standard. Financial Instruments In January 2016, the FASB issued guidance updating certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. The amendments in this update supersede the guidance to classify equity securities with readily determinable fair values into different categories (for example, trading or available-for-sale) and require equity securities to be measured at fair value with changes in the fair value recognized through net income. The new guidance also simplifies the impairment process for equity investments without readily determinable fair values. The new guidance is effective for annual periods beginning after December 15, 2017 and interim periods within those years. The Company adopted the new guidance as of January 1, 2018. The adoption of the new guidance resulted in a reclassification from accumulated other comprehensive income to retained earnings of $191,244 after tax, which is equal to the amount of net unrealized gains and losses on available-for-sale equity securities on January 1, 2018. Also, in the period ended December 31, 2018, the Company recognized an after-tax net realized investment loss from continuing operations of $17,375 in net income from the change in value of equity securities in accordance with the adoption of this new accounting guidance. Statement of Cash Flows - Classification of Certain Cash Receipts and Payments In August 2016, the FASB issued an update that clarifies the classification of certain cash receipts and payments in the Statement of Cash Flows. The update addresses eight existing cash flow issues by clarifying the correct classification to establish uniformity in practice. The updated guidance is effective for annual periods beginning after December 15, 2017 and interim periods within those years. The Company adopted the new guidance as of January 1, 2018. The adoption had no impact on the Company's financial position and results of operations. Defined Benefit Retirement Plan Cost In March 2017, the FASB issued guidance on the presentation of net periodic benefit costs of defined benefit retirement benefit plans in the Statements of Income. The new guidance requires the service cost component of net periodic benefit cost of defined benefit plans to be presented in the same line in the Statements of Income as other employee compensation expenses. Also, under the new guidance, the service cost component of the net periodic benefit costs will be the only portion of costs subject to be capitalized in assets. The new guidance is effective for annual periods beginning after December 15, 2017 and interim periods within those years. The Company adopted the new guidance as of January 1, 2018. The adoption of the new guidance resulted in a change in the capitalization of deferred acquisition costs to only include the pension and post retirement service costs in place of the total net periodic benefit costs. The adoption had an immaterial impact on the Company's financial position and results of operations. Additionally, the adoption did not impact the Company's presentation in the Statements of Income as all net periodic benefit costs and employee compensation expenses are included within the same category in the Statements of Income. Share-Based Payments In May 2017, the FASB issued new guidance which clarifies and addresses the diversity in practice when there is a change in the terms of a share-based payment award. The updated guidance clarifies when to use modification accounting when there is a change in the terms of a share-based payment and provides three conditions where modification accounting should not be applied. The new guidance is effective for annual and interim periods beginning after December 15, 2017. The Company adopted the new guidance as of January 1, 2018. The adoption had no impact on the Company's financial position and results of operations. Pending Adoption of Accounting Standards Intangibles - Other Internal Use Software In August 2018, the FASB issued guidance to align the requirements for capitalizing implementation costs incurred in a cloud computing hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The guidance requires the Company to determine which implementation costs to capitalize as an asset related to the service contract and which costs to expense. The new guidance is effective for annual and interim periods beginning after December 15, 2019. The Company will adopt the new guidance as of January 1, 2020. Management currently believes that the adoption will not have an impact on the Company's financial position or results of operations. Leases In February 2016, the FASB issued guidance on the accounting for leases. The new guidance requires lessees to place a right-of-use asset and a lease liability on their balance sheets. The lease liability will be based on the present value of the future lease payments and the right-of-use asset will be based on the liability. Expenses will be recognized on the income statement in a similar manner as previous methods. The new guidance also requires companies to classify all leases as operating leases or financing leases. We believe all of our leases will be classified as operating leases. The new guidance is effective for annual periods beginning after December 15, 2018 and interim periods within those years. The Company will adopt the new guidance under a modified retrospective transition approach using the package of practical expedients and the Company will not adopt the hindsight practical expedient as of January 1, 2019. We expect to use the accounting standard adoption date as our date of initial application. The Company has an inventory of its operating leases and has calculated the total undiscounted future minimum lease payments, which are disclosed in Note 13 "Lease Commitments" of this report. The Company estimates the present value of future minimum lease payments at December 31, 2018 is $20.1 million , which represents less than 1.0 percent of the Company's total assets at December 31, 2018. The Company will record this amount as a lease liability on their Balance Sheets on January 1, 2019 and an estimated right-of-use asset of $19.7 million . The Company used their incremental borrowing rate of their credit facility described in Note 14 "Credit Facility" of this Form 10-K, as the discount rate for calculating the present value of the future minimum lease payments where appropriate. For leases that existed prior to the date of initial application or have terms which are not similar to the terms of the credit facility, the Company has elected to use the remaining lease term as of the date of initial application to measure its incremental borrowing rate. In this case, the incremental borrowing rate will be based on current industry borrowing rates for similar Companies with similar ratings. The Company has a small inventory of property leases for which the Company is the lessor. For these leases, the Company has made the election not to evaluate whether certain sales taxes are the primary obligation of the lessor as owner of the leased asset. The Company has reviewed and updated its processes and controls under the new guidance. Management currently believes that the adoption will not have a significant impact on the Company's financial position or results of operations. Financial Instruments - Callable Debt Securities In March 2016, the FASB issued an update to amend the amortization period for certain purchased callable debt securities held at a premium. The update requires the premium to be amortized to the earliest call date. The update doesn’t change the accounting for securities held at a discount, which will continue to be amortized to maturity. The new guidance is effective for annual periods beginning after December 15, 2018 and interim periods beginning after December 15, 2018. The Company will adopt the new guidance as of January 1, 2019. The adoption will have not have a material impact on the Company's financial position and results of operations. Income Taxes - Intra-entity Transfers In October 2016, the FASB issued new guidance on the income tax treatment of intra-entity transfers. The new guidance replaces the current guidance which prohibits the recognition of current and deferred income taxes of intra-entity transfers until the asset is sold externally. Under the new guidance, the exemption is eliminated and income taxes will be recognized on transfers of intra-entity assets. The new guidance is effective for annual periods beginning after December 15, 2018 and interim periods beginning after December 15, 2019. The Company will adopt the new guidance as of January 1, 2019. Management currently believes that the adoption will have an immaterial impact on the Company's financial position and results of operations. Financial Instruments - Credit Losses In June 2016, the FASB issued new guidance on the measurement of credit losses for most financial instruments. The new guidance replaces the current incurred loss model for recognizing credit losses with an expected loss model for instruments measured at amortized cost and requires allowances to be recorded for available-for-sale debt securities rather than reduce the carrying amount. These allowances will be remeasured each reporting period. The new guidance is effective for annual periods beginning after December 15, 2019 and interim periods within those years. The new guidance will impact the Company's portfolio of mortgage loan investments which are carried at amortized cost and the impairment model related to our available-for-sale fixed-maturity portfolio. The Company will adopt the new guidance as of January 1, 2020 and is currently evaluating the impact on the Company's financial position, results of operations and key processes. Goodwill In January 2017, the FASB issued new guidance which simplifies the test for goodwill impairment. The new guidance eliminates the implied fair value calculation when measuring a goodwill impairment charge. Under the new guidance, impairment charges will be based on the excess of the carrying value over fair value of goodwill. The new guidance is effective for annual and interim periods beginning after December 15, 2019. The Company will adopt the new guidance as of January 1, 2020 and it currently believes the adoption will have no impact on the Company's financial position and results of operations. Financial Instruments - Disclosures In August 2018, the FASB issued new guidance which modifies the disclosure requirements on fair value measurements of financial instruments. The new guidance removes the requirement for disclosing the amount and reason for transfers between Level 1 and Level 2 investment securities and the valuation processes for Level 3 fair value measurements. The guidance also requires additional disclosures on the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. The new guidance is effective for annual and interim periods beginning after December 15, 2019. The Company will adopt the new guidance as of January 1, 2020. Management currently believes the new guidance will modify existing fair value disclosures, but will not have an impact on the Company's financial position and results of operations. Defined Benefit Plans - Disclosures In August 2018, the FASB issued new guidance which modifies the disclosure requirements for employers that sponsor defined benefit pension and postretirement plans. The new guidance removes the requirement for disclosing the amounts in accumulated other comprehensive income expected to be recognized as components of net periodic benefit costs in the next year and the sensitivity of postretirement health plans to one-percentage-point changes in medical trend rates. The new guidance is effective for annual periods beginning after December 15, 2019. The Company will adopt the new guidance as of January 1, 2020. Management currently believes the new guidance will |
Earnings Per Share | Basic earnings per share is computed by dividing net income by the weighted-average number of common shares outstanding during the reporting period. Diluted earnings per share gives effect to all dilutive common shares outstanding during the reporting period. The dilutive shares we consider in our diluted earnings per share calculation relate to our outstanding stock options and restricted stock awards. We determine the dilutive effect of our outstanding stock options using the "treasury stock" method. Under this method, we assume the exercise of all of the outstanding stock options whose exercise price is less than the weighted-average market value of our common stock during the reporting period. This method also assumes that the proceeds from the hypothetical stock option exercises are used to repurchase shares of our common stock at the weighted-average market value of the stock during the reporting period. The net of the assumed stock optio ns exercised and assumed common shares repurchased represents the number of dilutive common shares, which we add to the denominator of the earnings per share calculation. |
Fair Value Measurement | Current accounting guidance on fair value measurements includes the application of a fair value hierarchy that requires us to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Our financial instruments that are recorded at fair value are categorized into a three-level hierarchy, which is based upon the priority of the inputs to the valuation technique. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets (i.e., Level 1) and the lowest priority to unobservable inputs (i.e., Level 3). If the inputs used to measure fair value fall within different levels of the hierarchy, the category level is based on the lowest priority level input that is significant to the fair value measurement of the financial instrument. Financial instruments recorded at fair value are categorized in the fair value hierarchy as follows: • Level 1 : Valuations are based on unadjusted quoted prices in active markets for identical financial instruments that we have the ability to access. • Level 2 : Valuations are based on quoted prices for similar financial instruments, other than quoted prices included in Level 1, in markets that are not active or on inputs that are observable either directly or indirectly for the full term of the financial instrument. • Level 3 : Valuations are based on pricing or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement of the financial instrument. Such inputs may reflect management's own assumptions about the assumptions a market participant would use in pricing the financial instrument. We review our fair value hierarchy categorizations on a quarterly basis at which time the classification of certain financial instruments may change if the input observations have changed. Transfers between levels, if any, are recorded as of the beginning of the reporting period. To determine the fair value of the majority of our investments, we utilize prices obtained from independent, nationally recognized pricing services. We obtain one price for each security. When the pricing services cannot provide a determination of fair value for a specific security, we obtain non-binding price quotes from broker-dealers with whom we have had several years experience and who have demonstrated knowledge of the subject security. We request and utilize one broker quote per security. In order to determine the proper classification in the fair value hierarchy for each security where the price is obtained from an independent pricing service, we obtain and evaluate the vendors' pricing procedures and inputs used to price the security, which include unadjusted quoted market prices for identical securities, such as a New York Stock Exchange closing price, and quoted prices for identical securities in markets that are not active. For fixed maturity securities, an evaluation of interest rates and yield curves observable at commonly quoted intervals, volatility, prepayment speeds, credit risks and default rates may also be performed. We have determined that these processes and inputs result in fair values and classifications consistent with the applicable accounting guidance on fair value measurements. When possible, we use quoted market prices to determine the fair value of fixed maturities, equity securities, trading securities and short-term investments. When quoted market prices do not exist, we base estimates of fair value on market information obtained from independent pricing services and brokers or on valuation techniques that are both unobservable and significant to the overall fair value measurement of the financial instrument. Such inputs may reflect management's own assumptions about the assumptions a market participant would use in pricing the financial instrument. Our valuation techniques are discussed in more detail throughout this section. The fair value of our mortgage loans is determined by modeling performed by us based on the stated principal and coupon payments provided for in the loan agreements. These cash flows are then discounted using an appropriate risk-adjusted discount rate to determine the loan's fair value, which is a Level 3 fair value measurement. The fair value of our policy loans is equivalent to carrying value, which is a reasonable estimate of fair value and is classified as Level 2. We do not make policy loans for amounts in excess of the cash surrender value of the related policy. In all instances, the policy loans are fully collateralized by the related liability for future policy benefits for traditional insurance policies or by the policyholders' account balance for non-traditional policies. Our other long-term investments consist primarily of our interests in limited liability partnerships that are recorded on the equity method of accounting. The fair value of the partnerships is obtained from the fund managers, which is based on the fair value of the underlying investments held in the partnerships. In management's opinion, these values represent a reasonable estimate of fair value. We have not adjusted the net asset value provided by the fund managers. For cash and cash equivalents and accrued investment income, carrying value is a reasonable estimate of fair value due to the short-term nature of these financial instruments. The Company formed a rabbi trust in 2014 to fund obligations under the United Fire & Casualty Company Non-qualified Deferred Compensation Plan and United Fire Group Supplemental Executive Retirement and Deferral Plan (collectively the "Executive Retirement Plans"). Within the rabbi trust, corporate-owned life insurance ("COLI") policies are utilized as an investment vehicle and source of funding for the Company's Executive Retirement Plans. The COLI policies invest in mutual funds, which are priced daily by independent sources. As of December 31, 2018 , the cash surrender value of the COLI policies was $4,907 , which is equal to the fair value measured using Level 2 inputs, based on the underlying assets of the COLI policies, and is included in other assets in the Consolidated Balance Sheets. Policy reserves are developed and recorded for deferred annuities, which is an interest-sensitive product, and income annuities. The fair value of the reserve liability for these annuity products is based upon an estimate of the discounted pretax cash flows that are forecast for the underlying business, which is a Level 3 fair value measurement. We base the discount rate on the current U.S. Treasury spot yield curve, which is then risk-adjusted for nonperformance risk and, for interest-sensitive business and market risk factors. The risk-adjusted discount rate is developed using interest rates that are available in the market and representative of the risks applicable to the underlying business. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Components of Deferred Acquisition Costs | The following table is a summary of the components of DAC that are reported in the accompanying Consolidated Financial Statements. Continuing Operations - Property and Casualty Insurance 2018 2017 2016 Recorded asset at beginning of year $ 88,102 $ 93,362 $ 90,547 Underwriting costs deferred 210,926 202,486 205,707 Amortization of deferred policy acquisition costs (206,232 ) (207,746 ) (202,892 ) Recorded asset at end of year $ 92,796 $ 88,102 $ 93,362 Discontinued Operations - Life Insurance Recorded asset at beginning of year $ 71,151 $ 70,750 $ 77,717 Underwriting costs deferred 1,376 5,463 5,564 Amortization of deferred policy acquisition costs (1,895 ) (5,181 ) (8,121 ) $ 70,632 $ 71,032 $ 75,160 Change in "shadow" deferred policy acquisition costs 7,274 119 (4,410 ) Sale of discontinued operations (77,906 ) — — Recorded asset at end of year $ — $ 71,151 $ 70,750 Total Recorded asset at beginning of year $ 159,253 $ 164,112 $ 168,264 Underwriting costs deferred 212,302 207,949 211,271 Amortization of deferred policy acquisition costs (208,127 ) (212,927 ) (211,013 ) $ 163,428 $ 159,134 $ 168,522 Change in "shadow" deferred policy acquisition costs 7,274 119 (4,410 ) Sale of discontinued operations (77,906 ) — — Recorded asset at end of year $ 92,796 $ 159,253 $ 164,112 |
Schedule of Property and Equipment | The following table is a summary of the components of the property and equipment that are reported in the accompanying Consolidated Financial Statements. 2018 2017 Real estate: Land $ 8,396 $ 8,396 Buildings 69,214 48,677 Furniture and fixtures 5,733 4,645 Computer equipment and software 13,851 7,274 Airplane — — Total property and equipment $ 97,194 $ 68,992 Useful Life Computer equipment and software Three years Furniture and fixtures Seven years Leasehold improvements Shorter of the lease term or useful life of the asset Real estate Seven to thirty-nine years Airplane Five years |
SUMMARY OF INVESTMENTS (Tables)
SUMMARY OF INVESTMENTS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Reconciliation of Amortized Cost to Fair Value | The table that follows is a reconciliation of the amortized cost (cost for equity securities) to fair value of investments in held-to-maturity and available-for-sale fixed maturity and available-for-sale equity securities, presented on a consolidated basis, including both continuing and discontinued operations as of December 31, 2018 and 2017 . December 31, 2018 Type of Investment Cost or Amortized Cost Gross Unrealized Appreciation Gross Unrealized Depreciation Fair Value AVAILABLE-FOR-SALE Fixed maturities Bonds U.S. Treasury $ 27,632 $ 6 $ 220 $ 27,418 U.S. government agency 215,535 896 1,749 214,682 States, municipalities and political subdivisions General obligations: Midwest 94,806 1,091 685 95,212 Northeast 37,326 432 103 37,655 South 114,710 754 1,553 113,911 West 107,787 1,229 1,175 107,841 Special revenue: Midwest 140,025 1,609 870 140,764 Northeast 62,737 452 1,241 61,948 South 237,848 1,669 3,708 235,809 West 143,829 1,294 2,203 142,920 Foreign bonds 9,698 31 13 9,716 Public utilities 56,808 274 1,023 56,059 Corporate bonds Energy 28,909 43 304 28,648 Industrials 53,867 124 906 53,085 Consumer goods and services 54,323 142 819 53,646 Health care 16,721 42 105 16,658 Technology, media and telecommunications 26,819 35 678 26,176 Financial services 81,286 238 2,175 79,349 Mortgage-backed securities 7,642 14 232 7,424 Collateralized mortgage obligations Government national mortgage association 78,055 380 1,734 76,701 Federal home loan mortgage corporation 108,403 524 1,304 107,623 Federal national mortgage association 53,267 213 732 52,748 Asset-backed securities 3,256 352 113 3,495 Total Available-For-Sale Fixed Maturities $ 1,761,289 $ 11,844 $ 23,645 $ 1,749,488 December 31, 2017 Type of Investment Cost or Amortized Cost Gross Unrealized Appreciation Gross Unrealized Depreciation Fair Value HELD-TO-MATURITY Fixed maturities Bonds Corporate bonds - financial services $ 150 $ — $ — $ 150 Mortgage-backed securities 34 — — 34 Total Held-to-Maturity Fixed Maturities $ 184 $ — $ — $ 184 AVAILABLE-FOR-SALE Fixed maturities Bonds U.S. Treasury $ 17,073 $ 4 $ 186 $ 16,891 U.S. government agency 121,574 1,311 717 122,168 States, municipalities and political subdivisions General obligations: Midwest 107,689 2,446 439 109,696 Northeast 47,477 1,174 10 48,641 South 139,870 2,462 813 141,519 West 111,123 2,351 463 113,011 Special revenue: Midwest 155,475 3,620 351 158,744 Northeast 79,028 1,351 619 79,760 South 260,145 5,218 1,851 263,512 West 156,576 2,929 1,198 158,307 Foreign bonds 51,361 1,441 49 52,753 Public utilities 206,028 3,386 270 209,144 Corporate bonds Energy 93,191 1,972 110 95,053 Industrials 218,067 3,881 241 221,707 Consumer goods and services 183,253 3,498 494 186,257 Health care 74,125 1,312 29 75,408 Technology, media and telecommunications 146,853 2,376 250 148,979 Financial services 277,824 5,769 442 283,151 Mortgage-backed securities 13,828 101 238 13,691 Collateralized mortgage obligations Government national mortgage association 157,836 1,921 2,274 157,483 Federal home loan mortgage corporation 201,320 1,879 4,047 199,152 Federal national mortgage association 104,903 1,703 1,174 105,432 Asset-backed securities 4,282 362 8 4,636 Total Available-For-Sale Fixed Maturities $ 2,928,901 $ 52,467 $ 16,273 $ 2,965,095 The following table is a reconciliation of the amortized cost (cost for equity securities) to fair value of investments in held-to-maturity and available-for-sale fixed maturity and equity securities for continuing and discontinued operations by investment type at December 31, 2017. December 31, 2017 Type of Investment Cost or Amortized Cost Gross Unrealized Appreciation Gross Unrealized Depreciation Fair Value HELD-TO-MATURITY Fixed maturities: Continuing operations $ 150 $ — $ — $ 150 Discontinued operations 34 — — 34 Total Held-to-Maturity Fixed Maturities $ 184 $ — $ — $ 184 AVAILABLE-FOR-SALE Fixed maturities: Continuing operations $ 1,516,610 $ 27,412 $ 8,952 $ 1,535,070 Discontinued operations 1,412,291 25,055 7,321 1,430,025 Total Available-for-Sale Fixed Maturities $ 2,928,901 $ 52,467 $ 16,273 $ 2,965,095 |
Contractual Maturity of Investments | The amortized cost and fair value of held-to-maturity, available-for-sale and trading fixed maturity securities at December 31, 2018 , by contractual maturity, are shown in the following table. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Asset-backed securities, mortgage-backed securities and collateralized mortgage obligations may be subject to prepayment risk and are therefore not categorized by contractual maturity. Maturities Available-For-Sale Trading December 31, 2018 Amortized Cost Fair Value Amortized Cost Fair Value Due in one year or less $ 48,331 $ 48,492 $ 4,408 $ 5,232 Due after one year through five years 225,816 226,069 5,019 5,872 Due after five years through 10 years 544,551 542,662 — — Due after 10 years 691,968 684,274 1,850 2,136 Asset-backed securities 3,256 3,495 — — Mortgage-backed securities 7,642 7,424 — — Collateralized mortgage obligations 239,725 237,072 — — $ 1,761,289 $ 1,749,488 $ 11,277 $ 13,240 |
Summary of Net Realized Investment Gains (Losses) | A summary of net realized investment gains (losses) for 2018 , 2017 and 2016 , is as follows: 2018 2017 2016 Net realized investment gains (losses) from continuing operations Fixed maturities: Available-for-sale $ (254 ) $ 829 $ 1,004 Trading securities Change in fair value (296 ) 924 189 Sales 1,226 244 931 Equity securities (20,292 ) 1,942 2,654 Mortgage loans (46 ) — — Cash equivalents — — 169 Real estate (517 ) 116 — Total net realized investment gains (losses) from continuing operations $ (20,179 ) $ 4,055 $ 4,947 Total net realized investment gains (losses) from discontinued operations (1,057 ) 4,008 1,156 Total net realized investment gains (losses) $ (21,236 ) $ 8,063 $ 6,103 |
Schedule of Proceeds and Gross Realized Gains (Losses) | The proceeds and gross realized gains (losses) on the sale of available-for-sale fixed maturity securities from continuing operations for 2018 , 2017 and 2016 , are as follows: 2018 2017 2016 Proceeds from sales $ 132,250 $ 7,404 $ 1,968 Gross realized gains 140 1,046 920 Gross realized losses 517 (20 ) — The proceeds and gross realized gains (losses) on the sale of available-for-sale fixed maturity securities from discontinued operations for 2018 , 2017 and 2016 , are as follows: 2018 2017 2016 Proceeds from sales $ — $ 7,315 $ 12,354 Gross realized gains — 1,264 65 Gross realized losses — (78 ) (639 ) |
Schedule of Net Investment Income | Net investment income for the years ended December 31, 2018 , 2017 and 2016 , is comprised of the following: Years Ended December 31, 2018 2017 2016 Investment income from continuing operations: Interest on fixed maturities $ 51,356 $ 44,784 $ 43,147 Dividends on equity securities 7,731 7,108 6,448 Income on other long-term investments Investment income 8,383 6,870 1,200 Change in value (1) (10,116 ) (2,812 ) 10,178 Interest on mortgage loans 412 — — Interest on short-term investments 606 120 47 Interest on cash and cash equivalents 1,875 1,125 352 Other 307 300 422 Total investment income from continuing operations $ 60,554 $ 57,495 $ 61,794 Less investment expenses 7,660 6,305 6,510 Net investment income from continuing operations $ 52,894 $ 51,190 $ 55,284 Net investment income from discontinued operations $ 12,663 $ 49,720 $ 51,538 Net investment income $ 65,557 $ 100,910 $ 106,822 (1) |
Summary of Changes in Net Unrealized Investment Appreciation | A summary of changes in net unrealized investment appreciation for 2018 , 2017 and 2016 , is as follows for continuing operations and discontinued operations: 2018 2017 2016 Change in net unrealized investment appreciation Available-for-sale fixed maturities $ (57,475 ) $ 25,573 $ (21,271 ) Available-for-sale equity securities — 40,168 34,179 Deferred policy acquisition costs 7,274 119 (4,410 ) Income tax effect 10,543 (21,545 ) (2,975 ) Cumulative change in accounting principles (191,244 ) — — Accumulated effect of change in enacted tax rate — 36,658 — Net unrealized investment depreciation of discontinued operations, sold 6,714 — — Total change in net unrealized investment appreciation (depreciation), net of tax $ (224,188 ) $ 80,973 $ 5,523 |
Summary of Investments in Unrealized Loss Position | The tables on the following pages summarize our fixed maturity and equity securities that were in an unrealized loss position at December 31, 2018 and 2017 for continuing operations and discontinued operations. The securities are presented by the length of time they have been continuously in an unrealized loss position. It is possible that we could recognize OTTI charges in future periods on securities held at December 31, 2018 if future events or information cause us to determine that a decline in fair value is other-than-temporary. We have evaluated the near-term prospects of the issuers of our fixed maturity securities in relation to the severity and duration of the unrealized loss and determined that these losses did not warrant the recognition of an OTTI charge in 2018 , 2017 or 2016 . All fixed maturity securities in the investment portfolio continue to pay the expected coupon payments under the contractual terms of the securities. We believe the unrealized depreciation in value of other securities in our fixed maturity portfolio is primarily attributable to changes in market interest rates and not the credit quality of the issuer. We have no intention to sell and it is more likely than not that we will not be required to sell these securities until the fair value recovers to at least equal to our cost basis or the securities mature. December 31, 2018 Less than 12 months 12 months or longer Total Type of Investment Number Fair Gross Unrealized Number Fair Gross Unrealized Depreciation Fair Gross Unrealized Depreciation AVAILABLE-FOR-SALE Fixed maturities Bonds U.S. Treasury 1 $ 8,018 $ 7 5 $ 14,645 $ 213 $ 22,663 $ 220 U.S. government agency 4 17,907 81 17 80,696 1,668 98,603 1,749 States, municipalities and political subdivisions General obligations Midwest 2 2,939 5 7 23,749 680 26,688 685 Northeast — — — 3 12,110 103 12,110 103 South 1 778 2 22 50,174 1,551 50,952 1,553 West 1 1,203 5 16 48,499 1,170 49,702 1,175 Special revenue Midwest 4 3,892 8 19 43,854 862 47,746 870 Northeast — — — 14 37,629 1,241 37,629 1,241 South 4 4,298 30 45 107,016 3,678 111,314 3,708 West 4 11,115 32 28 69,667 2,171 80,782 2,203 Foreign bonds 1 2,984 13 — — — 2,984 13 Public utilities 12 25,781 552 8 17,253 471 43,034 1,023 Corporate bonds Energy 7 12,556 148 2 4,099 156 16,655 304 Industrials 9 21,970 397 4 11,040 509 33,010 906 Consumer goods and services 14 30,399 527 5 9,554 292 39,953 819 Health care 3 6,203 97 1 345 8 6,548 105 Technology, media and telecommunications 6 12,638 288 5 9,619 390 22,257 678 Financial services 13 30,177 650 13 32,855 1,525 63,032 2,175 Mortgage-backed securities 22 1,539 34 22 4,166 198 5,705 232 Collateralized mortgage obligations Government national mortgage association 2 3,797 55 22 44,690 1,679 48,487 1,734 Federal home loan mortgage corporation 3 4,541 20 18 38,189 1,284 42,730 1,304 Federal national mortgage association 4 2,107 3 15 38,986 729 41,093 732 Asset-backed securities 1 2,829 113 — — — 2,829 113 Total Available-for-Sale Fixed Maturities 118 $ 207,671 $ 3,067 291 $ 698,835 $ 20,578 $ 906,506 $ 23,645 December 31, 2017 Less than 12 months 12 months or longer Total Type of Investment Number Fair Gross Unrealized Depreciation Number Fair Gross Unrealized Depreciation Fair Gross Unrealized Depreciation AVAILABLE-FOR-SALE Fixed maturities Bonds U.S. Treasury 5 $ 10,370 $ 67 2 $ 5,765 $ 119 $ 16,135 $ 186 U.S. government agency 11 64,842 390 5 19,372 327 84,214 717 States, municipalities and political subdivisions General obligations Midwest 2 2,177 8 3 19,729 431 21,906 439 Northeast — — — 1 3,644 10 3,644 10 South 3 7,959 32 11 29,545 781 37,504 813 West 2 5,944 18 8 25,755 445 31,699 463 Special revenue Midwest 2 3,486 15 7 19,130 336 22,616 351 Northeast 1 4,471 37 11 28,476 582 32,947 619 South 8 7,749 107 27 69,917 1,744 77,666 1,851 West 3 5,424 16 22 56,753 1,182 62,177 1,198 Foreign bonds 1 857 49 — — — 857 49 Public utilities 8 19,186 79 5 8,446 191 27,632 270 Corporate bonds Energy 1 2,236 13 1 1,606 97 3,842 110 Industrials 10 27,773 146 2 4,275 95 32,048 241 Consumer goods and services 14 32,781 248 3 6,813 246 39,594 494 Health care 4 9,947 29 — — — 9,947 29 Technology, media and telecommunications 12 35,319 122 3 10,413 128 45,732 250 Financial services 22 50,144 256 4 11,389 186 61,533 442 Mortgage-backed securities 10 2,458 18 10 6,641 220 9,099 238 Collateralized mortgage obligations Government national mortgage association 20 49,764 629 17 46,969 1,645 96,733 2,274 Federal home loan mortgage corporation 11 37,543 577 20 75,679 3,470 113,222 4,047 Federal national mortgage association 11 31,958 342 11 20,123 832 52,081 1,174 Asset-backed securities 1 992 8 — — — 992 8 Total Available-for-Sale Fixed Maturities 162 $ 413,380 $ 3,206 173 $ 470,440 $ 13,067 $ 883,820 $ 16,273 The following tables are a reconciliation for continuing and discontinued operations of our total fixed maturity and equity securities that were in an unrealized loss position at December 31, 2017 . The securities are presented by the length of time they have been continuously in an unrealized loss position: December 31, 2017 Less than 12 months 12 months or longer Total Type of Investment Number Fair Gross Unrealized Number Fair Gross Unrealized Depreciation Fair Gross Unrealized Depreciation AVAILABLE-FOR-SALE Fixed maturities: Continuing operations 88 $ 232,489 $ 1,791 112 $ 302,815 $ 7,161 $ 535,304 $ 8,952 Discontinued operations 74 180,891 1,415 61 167,625 5,906 348,516 7,321 Total Available-for-Sale Fixed Maturities 162 $ 413,380 $ 3,206 173 $ 470,440 $ 13,067 $ 883,820 $ 16,273 |
FAIR VALUE OF FINANCIAL INSTR_2
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Carrying Value and Estimated Fair Value of Financial Instruments | A summary of the carrying value and estimated fair value of our financial instruments from continuing operations at December 31, 2018 and 2017 is as follows: December 31, 2018 December 31, 2017 Fair Value Carrying Value Fair Value Carrying Value Assets Investments Fixed maturities: Held-to-maturity securities $ — $ — $ 150 $ 150 Available-for-sale securities 1,749,488 1,749,488 1,535,070 1,535,070 Trading securities 13,240 13,240 16,842 16,842 Equity securities: 248,361 248,361 287,344 287,344 Mortgage loans 26,021 25,782 — — Other long-term investments 37,077 37,077 49,352 49,352 Short-term investments 175 175 175 175 Cash and cash equivalents 64,454 64,454 95,562 95,562 Corporate-owned life insurance 4,907 4,907 4,029 4,029 A summary of the carrying value and estimated fair value of our financial instruments from discontinued operations at December 31, 2018 and 2017 is as follows: December 31, 2018 December 31, 2017 Fair Value Carrying Value Fair Value Carrying Value Assets Investments Fixed maturities: Held-to-maturity securities $ — $ — $ 34 $ 34 Available-for-sale securities — — 1,430,025 1,430,025 Equity securities: Available-for-sale securities — — 23,653 23,653 Mortgage loans — — 3,594 3,435 Policy loans — — 5,815 5,815 Other long-term investments — — 16,437 16,437 Cash and cash equivalents — — 15,851 15,851 Liabilities Policy reserves Annuity (accumulations) (1) $ — $ — $ 591,702 $ 611,866 Annuity (benefit payments) — — 147,038 93,560 |
Financial Instruments Measured at Fair Value on Recurring Basis | The following tables present the categorization for our financial instruments measured at fair value on a recurring basis. The tables include financial instruments from both continuing and discontinued operations at December 31, 2018 and 2017 : Fair Value Measurements Description December 31, 2018 Level 1 Level 2 Level 3 AVAILABLE-FOR-SALE Fixed maturities Bonds U.S. Treasury $ 27,418 $ — $ 27,418 $ — U.S. government agency 214,682 — 214,682 — States, municipalities and political subdivisions General obligations Midwest 95,212 — 95,212 — Northeast 37,655 — 37,655 — South 113,911 — 113,911 — West 107,841 — 107,841 — Special revenue Midwest 140,764 — 140,764 — Northeast 61,948 — 61,948 — South 235,809 — 235,809 — West 142,920 — 142,920 — Foreign bonds 9,716 — 9,716 — Public utilities 56,059 — 56,059 — Corporate bonds Energy 28,648 — 28,648 — Industrials 53,085 — 53,085 — Consumer goods and services 53,646 — 53,646 — Health care 16,658 — 16,658 — Technology, media and telecommunications 26,176 — 26,176 — Financial services 79,349 — 79,099 250 Mortgage-backed securities 7,424 — 7,424 — Collateralized mortgage obligations Government national mortgage association 76,701 — 76,701 — Federal home loan mortgage corporation 107,623 — 107,623 — Federal national mortgage association 52,748 — 52,748 — Asset-backed securities 3,495 — 2,829 666 Total Available-For-Sale Fixed Maturities $ 1,749,488 $ — $ 1,748,572 $ 916 TRADING Fixed maturities Bonds Corporate bonds Industrials $ 397 $ — $ 397 $ — Consumer goods and services 1,599 — 1,599 — Health care 3,236 — 3,236 — Technology, media and telecommunications 3,028 — 3,028 — Financial services 2,231 — 2,231 — Redeemable preferred stocks 2,749 2,749 — — Total Trading Securities $ 13,240 $ 2,749 $ 10,491 $ — Equity securities Public utilities 15,949 15,949 — — Energy 10,975 10,975 — — Industrials 53,536 53,536 — — Consumer goods and services 24,465 24,465 — — Health care 22,286 22,286 — — Financial Services 101,555 101,555 — — Technology, media and telecommunications 13,944 13,944 — — Nonredeemable preferred stocks 5,651 5,056 — 595 Total Equity Securities $ 248,361 $ 247,766 $ — $ 595 Short-Term Investments $ 175 $ 175 $ — $ — Money Market Accounts $ 3,275 $ 3,275 $ — $ — Corporate-Owned Life Insurance $ 4,907 $ — $ 4,907 $ — Total Assets Measured at Fair Value $ 2,019,446 $ 253,965 $ 1,763,970 $ 1,511 Fair Value Measurements Description December 31, 2017 Level 1 Level 2 Level 3 AVAILABLE-FOR-SALE Fixed maturities Bonds U.S. Treasury $ 16,891 $ — $ 16,891 $ — U.S. government agency 122,168 — 122,168 — States, municipalities and political subdivisions General obligations Midwest 109,696 — 109,696 — Northeast 48,641 — 48,641 — South 141,519 — 141,519 — West 113,011 — 113,011 — Special revenue Midwest 158,744 — 158,744 — Northeast 79,760 — 79,760 — South 263,512 — 263,512 — West 158,307 — 158,307 — Foreign bonds 52,753 — 52,753 — Public utilities 209,144 — 209,144 — Corporate bonds Energy 95,053 — 95,053 — Industrials 221,707 — 221,707 — Consumer goods and services 186,257 — 185,589 668 Health care 75,408 — 75,408 — Technology, media and telecommunications 148,979 — 148,979 — Financial services 283,151 — 275,474 7,677 Mortgage-backed securities 13,691 — 13,691 — Collateralized mortgage obligations Government national mortgage association 157,483 — 157,483 — Federal home loan mortgage corporation 199,152 — 199,152 — Federal national mortgage association 105,432 — 105,432 — Asset-backed securities 4,636 — 3,989 647 Total Available-For-Sale Fixed Maturities $ 2,965,095 $ — $ 2,956,103 $ 8,992 TRADING Fixed maturities Bonds Corporate bonds Industrials $ 2,220 $ — $ 2,220 $ — Consumer goods and services 1,535 — 1,535 — Health care 3,741 — 3,741 — Technology, media and telecommunications 1,221 — 1,221 — Financial services 5,566 — 5,566 — Redeemable preferred stocks 2,559 2,559 — — Total Trading Securities $ 16,842 $ 2,559 $ 14,283 $ — Equity securities Public utilities $ 23,313 $ 23,313 $ — $ — Energy 14,755 14,755 — — Industrials 67,508 67,506 2 — Consumer goods and services 27,002 27,002 — — Health care 40,428 40,428 — — Financial Services 116,645 116,645 — — Technology, media and telecommunications 17,508 17,508 — — Nonredeemable preferred stocks 3,838 2,956 — 882 Total Equity Securities $ 310,997 $ 310,113 $ 2 $ 882 Short-Term Investments $ 175 $ 175 $ — $ — Money Market Accounts $ 16,824 $ 16,824 $ — $ — Corporate-Owned Life Insurance $ 4,029 $ — $ 4,029 $ — Total Assets Measured at Fair Value $ 3,313,962 $ 329,671 $ 2,974,417 $ 9,874 The following tables are a reconciliation for both continuing and discontinued operations of the presentation of the categorization for our financial instruments measured at fair value on a recurring basis at December 31, 2017 : December 31, 2017 Fair Value Measurements Description Total Level 1 Level 2 Level 3 AVAILABLE-FOR-SALE Continuing operations $ 1,535,070 $ — $ 1,534,323 $ 747 Discontinued operations 1,430,025 — 1,421,780 8,245 Total Available-for-Sale $ 2,965,095 $ — $ 2,956,103 $ 8,992 TRADING Continuing operations $ 16,842 $ 2,559 $ 14,283 $ — Discontinued operations — — — — Total Trading Securities $ 16,842 $ 2,559 $ 14,283 $ — EQUITY SECURITIES: Continuing operations $ 287,344 $ 286,462 $ — $ 882 Discontinued operations 23,653 23,651 2 — Equity securities $ 310,997 $ 310,113 $ 2 $ 882 SHORT-TERM INVESTMENTS Continuing operations $ 175 $ 175 $ — $ — Discontinued operations — — — — Short-Term Investments $ 175 $ 175 $ — $ — MONEY MARKET ACCOUNTS Continuing operations $ 6,147 $ 6,147 $ — $ — Discontinued operations 10,677 10,677 — — Money Market Accounts $ 16,824 $ 16,824 $ — $ — CORPORATE-OWNED LIFE INSURANCE Continuing operations $ 4,029 $ — $ 4,029 $ — Discontinued operations — — — — Corporate-Owned Life Insurance $ 4,029 $ — $ 4,029 $ — Total Assets Measured at Fair Value $ 3,313,962 $ 329,671 $ 2,974,417 $ 9,874 |
Summary of Changes in Fair Value of Level 3 Securities | The following table provides a summary of the changes in fair value of our Level 3 securities, from continuing operations for 2018 : Corporate bonds Asset-backed securities Equities Total Balance at January 1, 2018 $ 100 $ 647 $ 882 $ 1,629 Unrealized gains (losses) (1) — 19 (287 ) (268 ) Purchases 150 — — 150 Balance at December 31, 2018 $ 250 $ 666 $ 595 $ 1,511 (1) Unrealized gains (losses) are recorded as a component of comprehensive income. The following table provides a summary of the changes in fair value of our Level 3 securities, from both continuing and discontinued operations for 2017 : States, municipalities and political subdivisions Corporate bonds Asset-backed securities Equities Total Balance at January 1, 2017 $ 168 $ 9,894 $ 449 $ 4,587 $ 15,098 Unrealized gains (losses) (1) (8 ) (129 ) 198 287 348 Purchases — 100 — 145 245 Disposals (160 ) (1,520 ) — (4,137 ) (5,817 ) Balance at December 31, 2017 $ — $ 8,345 $ 647 $ 882 $ 9,874 |
Schedule of Commercial Mortgage Loans | The following tables present the carrying value of our commercial mortgage loans and additional information at December 31, 2018 and 2017 : Commercial Mortgage Loans December 31, 2018 December 31, 2017 Loan-to-value Less than 65% $ 25,828 — Total amortized cost $ 25,828 $ — Valuation allowance (46 ) — Total mortgage loans $ 25,782 $ — Mortgage Loans by Region December 31, 2018 December 31, 2017 Carrying Value Percent of Total Carrying Value Percent of Total East North Central $ 3,244 12.6 % $ — — % Southern Atlantic 6,652 25.8 — — East South Central 4,975 19.3 — — New England 6,588 25.4 — — Middle Atlantic 4,369 16.9 — — Total mortgage loans at amortized cost $ 25,828 100.0 % $ — — % Mortgage Loans by Property Type December 31, 2018 December 31, 2017 Carrying Value Percent of Total Carrying Value Percent of Total Commercial Multifamily $ 3,244 12.6 % $ — — % Office 11,627 45.0 — — Mixed use/Other 10,957 42.4 — — Total mortgage loans at amortized cost $ 25,828 100.0 % $ — — % |
REINSURANCE (Tables)
REINSURANCE (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Reinsurance Disclosures [Abstract] | |
Ceded and Assumed Reinsurance | Premiums and losses and loss settlement expenses related to our ceded and assumed business are as follows: Years Ended December 31, 2018 2017 2016 Ceded Business Ceded premiums written $ 66,800 $ 61,273 $ 57,988 Ceded premiums earned 63,487 61,305 57,996 Loss and loss settlement expenses ceded 22,317 33,303 13,278 Assumed Business Assumed premiums written $ 16,761 $ 15,179 $ 16,834 Assumed premiums earned 16,957 15,059 17,037 Loss and loss settlement expenses assumed (3,954 ) 24,688 9,814 Years Ended December 31, 2018 2017 2016 Ceded Business Ceded insurance in-force $ — $ 1,014,794 $ 1,023,197 Ceded premiums earned 716 2,722 2,768 Loss and loss settlement expenses ceded 1,473 3,726 3,359 |
Reinsurance Programs and Retentions | The following table provides a summary of our primary reinsurance programs. Retention amounts reflect the accumulated retentions and co-participation of all layers within a program. For 2018, there was an all lines annual aggregate excess of loss program with variable retention of 6.78 percent of gross net earned premium with a minimum retention of $58.5 million and a maximum of $71.5 million . Our all lines aggregate recovery is also limited to $30.0 million . For 2017, there was an all lines annual aggregate excess of loss program with a variable retention of 7.02 percent of gross net earned premium with a minimum retention of $58.5 million and a maximum of $71.5 million. Our all lines aggregate recovery is also limited to a maximum of $30.0 million. For 2016, there was an all lines annual aggregate excess of loss program with a variable retention of 7.73 percent of gross net earned premium with a minimum retention of $52.0 million and a maximum of $65.0 million . Our all lines aggregate recovery is also limited to a maximum of $30.0 million . 2018 Reinsurance Programs Type of Reinsurance Stated Retention Limits Coverage Casualty excess of loss $ 2,500 $ 60,000 100 % of $ 57,500 Property excess of loss 2,500 25,000 100 % of $ 22,500 Surety excess of loss 1,500 45,000 100 % of $ 43,500 Property catastrophe, excess 20,000 250,000 100 % of $ 230,000 Boiler and machinery N/A 50,000 100 % of $ 50,000 2017 Reinsurance Programs Type of Reinsurance Stated Retention Limits Coverage Casualty excess of loss $ 2,500 $ 60,000 100 % of $ 57,500 Property excess of loss 2,500 25,000 100 % of $ 22,500 Surety excess of loss 1,500 45,000 100 % of $ 43,500 Property catastrophe, excess 20,000 250,000 100 % of $ 230,000 Boiler and machinery N/A 50,000 100 % of $ 50,000 2016 Reinsurance Programs Type of Reinsurance Stated Retention Limits Coverage Casualty excess of loss $ 2,500 $ 40,000 100 % of $ 37,500 Property excess of loss 2,500 25,000 100 % of $ 22,500 Surety excess of loss 1,500 36,000 100 % of $ 34,500 Property catastrophe, excess 20,000 250,000 100 % of $ 230,000 Boiler and machinery N/A 50,000 100 % of $ 50,000 |
RESERVES FOR LOSSES AND LOSS _2
RESERVES FOR LOSSES AND LOSS SETTLEMENT EXPENSES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Insurance Loss Reserves [Abstract] | |
Schedule of Property and Casualty Losses Settlement Expense | The following table provides an analysis of changes in our property and casualty losses and loss settlement expense reserves for 2018 , 2017 and 2016 (net of reinsurance amounts): Years Ended December 31, 2018 2017 2016 Gross liability for losses and loss settlement expenses $ 1,224,183 $ 1,123,896 $ 1,003,895 Ceded losses and loss settlement expenses (59,871 ) (59,794 ) (54,653 ) Net liability for losses and loss settlement expenses $ 1,164,312 $ 1,064,102 $ 949,242 Losses and loss settlement expenses incurred Current year $ 785,778 $ 779,966 $ 683,662 Prior years (54,167 ) (54,253 ) (31,229 ) Total incurred $ 731,611 $ 725,713 $ 652,433 Losses and loss settlement expense payments Current year $ 306,032 $ 311,972 $ 277,053 Prior years 334,502 313,531 260,520 Total paid $ 640,534 $ 625,503 $ 537,573 Net liability for losses and loss settlement expenses $ 1,255,389 $ 1,164,312 $ 1,064,102 Ceded loss and loss settlement expenses 57,094 59,871 59,794 Gross liability for losses and loss settlement expenses $ 1,312,483 $ 1,224,183 $ 1,123,896 |
Incurred and Paid Losses and Loss Settlement Expense Development | The following tables provide information about incurred and paid losses and loss settlement expense development as of December 31, 2018 , net of reinsurance, as well as cumulative development, cumulative claim frequency and IBNR liabilities. Claim data for Mercer Insurance Group, which was acquired on March 28, 2011, is presented retrospectively. The cumulative number of reported claims, for calendar year 2018 and 2017, are counted for all lines of business on a per claimant per coverage basis and a single event may result in multiple claims due to the involvement of multiple individual claimants and / or multiple independent coverages. Claim counts for calendar years 2016 and prior are counted on a per claim and per coverage basis. Claim counts include open claims, claims that have been paid and closed, and reported claims that have been closed without the need for any payment. Line of business: Commercial other liability Incurred losses and allocated loss settlement expenses, net of reinsurance As of December 31, 2018 For the years ended December 31, Total of incurred but not reported liabilities plus expected development on reported claims Cumulative development Cumulative number of reported claims Accident Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 (Unaudited) 2009 $ 88,298 $ 85,991 $ 73,545 $ 65,831 $ 84,286 $ 83,660 $ 85,761 $ 86,757 $ 86,543 $ 85,576 $ 9,249 (2,722 ) 6,333 2010 88,987 69,533 65,299 82,865 78,564 77,948 78,291 78,498 76,956 11,859 (12,031 ) 5,264 2011 81,522 64,738 88,371 88,200 79,591 80,801 81,463 80,338 12,231 (1,184 ) 5,436 2012 100,389 96,158 94,195 91,980 92,537 91,346 89,731 15,179 (10,658 ) 5,631 2013 104,982 91,460 90,502 86,119 85,399 88,816 7,922 (16,166 ) 6,147 2014 118,928 117,958 106,486 97,809 102,487 10,092 (16,441 ) 6,289 2015 137,386 125,307 120,005 127,091 19,976 (10,295 ) 7,385 2016 139,144 130,041 136,275 26,097 (2,869 ) 8,217 2017 139,602 139,032 38,919 (570 ) 7,837 2018 163,059 78,705 6,088 Total $ 1,089,361 Line of business: Commercial other liability Cumulative paid losses and allocated loss settlement expenses, net of reinsurance For the years ended December 31, Accident Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 (Unaudited) 2009 $ 8,375 $ 21,151 $ 32,073 $ 41,696 $ 50,098 $ 56,789 $ 63,149 $ 67,733 $ 70,814 $ 72,673 2010 7,103 15,230 24,577 35,043 51,336 56,761 60,116 62,070 63,300 2011 6,236 13,670 26,260 40,595 50,146 56,150 62,165 64,541 2012 6,875 24,620 39,948 55,316 64,574 69,800 71,773 2013 9,835 25,228 39,953 54,559 65,773 72,115 2014 10,207 29,679 50,211 70,363 83,109 2015 11,185 27,182 53,901 74,292 2016 13,782 38,184 63,526 2017 17,716 43,172 2018 16,200 Total $ 624,701 All outstanding liabilities for unpaid losses and loss settlement expenses before 2009, net of reinsurance 31,672 Liabilities for unpaid losses and loss settlement expenses, net of reinsurance $ 496,332 Line of business: Commercial fire and allied Incurred losses and allocated loss settlement expenses, net of reinsurance As of December 31, 2018 For the years ended December 31, Total of incurred but not reported liabilities plus expected development on reported claims Cumulative development Cumulative number of reported claims Accident Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 (Unaudited) 2009 $ 113,754 $ 106,085 $ 105,031 $ 105,614 $ 87,751 $ 87,845 $ 87,932 $ 88,891 $ 89,027 $ 88,648 $ 80 (25,106 ) 18,053 2010 113,139 106,152 108,246 83,836 83,932 83,767 83,981 84,213 84,123 65 (29,016 ) 16,690 2011 148,220 142,330 117,082 120,492 119,820 120,219 121,434 121,319 281 (26,901 ) 16,037 2012 138,602 110,448 108,774 108,047 107,958 108,623 109,687 813 (28,915 ) 6,438 2013 91,521 88,550 91,498 92,212 93,826 93,858 515 2,337 6,626 2014 126,216 131,198 128,762 128,185 128,503 1,012 2,287 7,883 2015 103,177 108,293 110,633 108,235 1,633 5,058 7,523 2016 147,473 144,208 143,721 2,320 (3,752 ) 9,703 2017 155,139 160,240 4,553 5,101 13,021 2018 143,280 13,286 9,235 Total $ 1,181,614 Line of business: Commercial fire and allied Cumulative paid losses and allocated loss settlement expenses, net of reinsurance For the years ended December 31, Accident Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 (Unaudited) 2009 $ 53,219 $ 72,181 $ 77,732 $ 82,809 $ 86,930 $ 87,544 $ 87,721 $ 88,037 $ 88,159 $ 88,334 2010 52,660 72,271 78,284 80,352 82,037 83,000 83,374 83,915 83,942 2011 85,585 104,800 109,429 112,497 116,614 118,183 120,178 120,731 2012 71,008 94,380 100,078 103,197 105,250 106,521 106,740 2013 59,331 78,226 82,853 86,115 89,200 91,493 2014 84,456 113,663 116,750 122,370 123,697 2015 67,217 90,454 95,515 101,367 2016 92,895 125,962 132,429 2017 99,484 137,058 2018 92,770 Total $ 1,078,561 All outstanding liabilities for unpaid losses and loss settlement expenses before 2009, net of reinsurance 522 Liabilities for unpaid losses and loss settlement expenses, net of reinsurance $ 103,575 Line of business: Commercial automobile Incurred losses and allocated loss settlement expenses, net of reinsurance As of December 31, 2018 For the years ended December 31, Total of incurred but not reported liabilities plus expected development on reported claims Cumulative development Cumulative number of reported claims Accident Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 (Unaudited) 2009 $ 80,021 $ 69,328 $ 68,569 $ 64,121 $ 64,516 $ 63,605 $ 63,560 $ 63,567 $ 63,509 $ 63,506 $ — (16,515 ) 15,019 2010 75,781 68,068 65,860 67,015 67,563 67,296 68,086 67,910 67,893 5 (7,888 ) 16,246 2011 84,887 87,299 90,750 92,519 92,379 91,336 90,766 90,838 199 5,951 15,248 2012 100,039 90,848 94,755 95,321 96,594 96,389 96,305 243 (3,734 ) 14,364 2013 104,356 98,037 102,943 103,726 104,980 105,248 811 892 15,520 2014 107,723 106,076 113,720 118,869 120,385 1,706 12,662 17,277 2015 125,506 129,816 132,206 138,987 3,837 13,481 19,961 2016 174,018 175,357 174,337 10,723 319 27,040 2017 227,919 224,553 28,591 (3,366 ) 32,281 2018 236,629 65,079 30,521 Total $ 1,318,681 Line of business: Commercial automobile Cumulative paid losses and allocated loss settlement expenses, net of reinsurance For the years ended December 31, Accident Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 (Unaudited) 2009 $ 27,674 $ 44,867 $ 53,451 $ 58,087 $ 61,398 $ 62,732 $ 63,495 $ 63,503 $ 63,508 $ 63,506 2010 29,329 41,141 52,953 57,947 62,231 65,169 67,622 67,852 67,853 2011 34,332 50,931 65,021 79,383 85,348 87,475 88,609 89,459 2012 39,247 57,201 71,469 82,944 90,292 93,179 94,747 2013 43,592 67,630 79,663 90,780 96,375 100,058 2014 45,704 68,033 87,590 99,922 109,682 2015 50,782 78,225 99,201 118,395 2016 66,013 103,528 128,157 2017 81,311 126,644 2018 81,572 Total $ 980,073 All outstanding liabilities for unpaid losses and loss settlement expenses before 2009, net of reinsurance 56 Liabilities for unpaid losses and loss settlement expenses, net of reinsurance $ 338,664 Line of business: Workers' compensation Incurred losses and allocated loss settlement expenses, net of reinsurance As of December 31, 2018 For the years ended December 31, Total of incurred but not reported liabilities plus expected development on reported claims Cumulative development Cumulative number of reported claims Accident Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 (Unaudited) 2009 $ 43,560 $ 39,009 $ 36,294 $ 36,837 $ 36,823 $ 36,158 $ 36,014 $ 35,026 $ 35,012 $ 34,783 $ 193 (8,777 ) 4,265 2010 38,210 42,531 41,180 41,167 40,647 41,422 41,468 42,617 42,666 346 4,456 3,986 2011 39,967 38,481 35,352 34,309 33,585 33,314 33,352 32,707 425 (7,260 ) 3,955 2012 48,848 46,279 42,158 38,423 38,553 39,015 39,182 503 (9,666 ) 3,982 2013 64,048 62,579 56,369 54,584 52,761 51,753 781 (12,295 ) 4,236 2014 64,051 60,729 58,284 56,630 54,636 1,106 (9,415 ) 4,668 2015 53,788 55,578 51,003 46,682 935 (7,106 ) 5,515 2016 70,419 66,575 61,648 2,042 (8,771 ) 7,376 2017 76,184 69,528 3,744 (6,656 ) 7,283 2018 71,972 5,885 5,478 Total $ 505,557 Line of business: Workers' compensation Cumulative paid losses and allocated loss settlement expenses, net of reinsurance For the years ended December 31, Accident Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 (Unaudited) 2009 $ 10,478 $ 20,292 $ 24,189 $ 27,747 $ 29,898 $ 31,003 $ 31,886 $ 32,911 $ 33,117 $ 33,313 2010 11,821 22,606 28,765 31,887 33,119 34,143 35,052 38,973 39,208 2011 10,322 21,678 26,033 27,497 28,247 29,022 29,453 29,700 2012 11,802 23,023 28,397 30,933 33,063 34,330 35,388 2013 14,136 30,209 38,023 42,941 45,078 47,071 2014 13,965 30,289 38,441 42,964 45,193 2015 12,063 27,304 35,229 38,424 2016 14,413 32,345 40,680 2017 14,647 31,309 2018 16,949 Total $ 357,235 All outstanding liabilities for unpaid losses and loss settlement expenses before 2009, net of reinsurance 20,232 Liabilities for unpaid losses and loss settlement expenses, net of reinsurance $ 168,554 Line of business: Personal Incurred losses and allocated loss settlement expenses, net of reinsurance As of December 31, 2018 For the years ended December 31, Total of incurred but not reported liabilities plus expected development on reported claims Cumulative development Cumulative number of reported claims Accident Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 (Unaudited) 2009 $ 34,597 $ 33,519 $ 31,945 $ 32,026 $ 32,134 $ 32,029 $ 32,085 $ 32,070 $ 31,867 $ 31,879 $ 2 (2,718 ) 13,502 2010 36,686 34,347 33,928 33,865 33,403 33,413 33,432 33,213 33,204 14 (3,482 ) 13,330 2011 50,014 48,534 47,090 47,035 46,968 47,013 46,733 46,761 32 (3,253 ) 14,846 2012 47,924 46,199 46,403 46,150 44,715 44,352 44,165 7 (3,759 ) 10,776 2013 39,232 38,525 37,262 37,086 36,729 36,661 36 (2,571 ) 9,240 2014 53,910 52,661 52,944 52,782 52,615 76 (1,295 ) 10,929 2015 42,848 41,088 40,336 40,368 132 (2,480 ) 9,522 2016 48,072 45,840 45,379 351 (2,693 ) 11,840 2017 60,330 59,342 733 (988 ) 14,454 2018 51,639 3,027 12,246 Total $ 442,013 Line of business: Personal Cumulative paid losses and allocated loss settlement expenses, net of reinsurance For the years ended December 31, Accident Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 (Unaudited) 2009 $ 22,086 $ 27,926 $ 29,801 $ 30,829 $ 31,564 $ 31,644 $ 31,718 $ 31,804 $ 31,837 $ 31,849 2010 24,499 29,867 31,340 32,076 32,771 32,997 33,165 33,158 33,154 2011 36,489 43,801 45,306 45,949 46,487 46,573 46,575 46,650 2012 30,415 41,979 43,375 44,448 43,569 44,139 44,158 2013 25,505 32,788 34,297 35,306 36,155 36,323 2014 37,055 47,912 49,710 51,837 52,018 2015 29,551 37,431 39,027 39,428 2016 32,999 40,910 42,660 2017 42,135 53,111 2018 37,410 Total $ 416,761 All outstanding liabilities for unpaid losses and loss settlement expenses before 2009, net of reinsurance 1,418 Liabilities for unpaid losses and loss settlement expenses, net of reinsurance $ 26,668 |
Unpaid Losses and Loss Settlement Expenses Liability | The reconciliation of the net incurred and loss development tables to the liability for unpaid losses and loss settlement expenses in the consolidated statement of financial position is as follows. December 31, 2018 Net outstanding liabilities for unpaid losses and allocated loss settlement expenses: Commercial other liability $ 496,332 Commercial fire and allied 103,575 Commercial automobile 338,664 Commercial workers' compensation 168,554 Personal 26,668 All other lines 32,595 Net outstanding liabilities for unpaid losses and allocated loss settlement expenses 1,166,388 Net outstanding liabilities for unpaid unallocated loss settlement expenses 86,753 Fair value adjustment (purchase accounting adjustment for Mercer acquisition) 2,248 Liabilities for unpaid losses and loss settlement expenses, net of reinsurance 1,255,389 Reinsurance recoverable on unpaid losses and allocated loss settlement expenses: Commercial other liability 22,556 Commercial fire and allied 2,723 Commercial automobile 3,166 Commercial workers' compensation 27,465 Personal 4 All other lines 3,329 Reinsurance recoverable on unpaid losses and allocated loss settlement expenses 59,243 Reinsurance fair value amortization (purchase accounting adjustment for Mercer acquisition) (2,149 ) Total reinsurance recoverable on unpaid losses and loss settlement expenses 57,094 Total gross liability for unpaid losses and loss settlement expenses $ 1,312,483 |
Average Historical Claims Duration | The following is supplementary information about average historical claims duration as of December 31, 2018 . Average annual percentage payout of incurred claims by age, net of reinsurance Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 (Unaudited) Commercial other liability 9.7 % 15.5 % 16.7 % 16.0 % 13.0 % 7.1 % 5.4 % 3.6 % 2.6 % 2.2 % Commercial fire and allied 64.0 % 21.4 % 4.9 % 3.8 % 2.7 % 1.3 % 0.6 % 0.5 % 0.1 % 0.2 % Commercial automobile 39.0 % 20.5 % 14.8 % 11.0 % 6.5 % 3.1 % 1.9 % 0.4 % — % — % Commercial workers' compensation 26.6 % 29.3 % 14.1 % 7.6 % 4.2 % 3.0 % 2.2 % 4.3 % 0.6 % 0.6 % Personal 71.9 % 19.1 % 4.0 % 2.4 % 1.0 % 0.6 % 0.2 % 0.1 % — % — % |
STATUTORY REPORTING, CAPITAL _2
STATUTORY REPORTING, CAPITAL REQUIREMENTS AND DIVIDENDS AND RETAINED EARNINGS RESTRICTIONS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Statutory Insurance Financial Information [Abstract] | |
Schedule of Statutory Capital and Surplus | Statutory capital and surplus in regards to policyholders at December 31, 2018 , 2017 and 2016 and statutory net income (loss) for the years then ended are as follows: Statutory Capital and Surplus Statutory Net Income (Loss) 2018 Property and casualty business $ 774,257 $ 219,065 Life, accident and health business (1) — 3,548 2017 Property and casualty business $ 757,443 $ 19,687 Life, accident and health business 144,533 5,485 2016 Property and casualty business $ 770,908 $ 39,087 Life, accident and health business 139,806 (3,177 ) (1) |
FEDERAL INCOME TAX (Tables)
FEDERAL INCOME TAX (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Federal Income Tax Expense (Benefit) | Federal income tax expense (benefit) from both continuing and discontinued operations is composed of the following: Years Ended December 31, 2018 2017 2016 Current $ 18,493 $ 1,989 $ 3,239 Deferred (21,791 ) (26,719 ) 5,524 Total $ (3,298 ) $ (24,730 ) $ 8,763 |
Income Tax Expense Reconciliation | A reconciliation of income tax expense (benefit) computed at the applicable federal tax rate of 21.0 percent in 2018 and 35.0 percent in 2017 to the amount recorded in the accompanying Consolidated Statements of Income and Comprehensive Income is as follows: Years Ended December 31, 2018 2017 2016 Computed expected income tax expense $ 5,114 $ 9,202 $ 20,533 Impact of enactment of Tax Act — (21,884 ) — Tax-exempt municipal bond interest income (4,235 ) (8,875 ) (8,330 ) Nontaxable dividend income (591 ) (1,540 ) (1,317 ) Valuation allowance reduction (329 ) (547 ) (547 ) Other, net (3,257 ) (1,086 ) (1,576 ) Consolidated federal income tax expense (benefit) $ (3,298 ) $ (24,730 ) $ 8,763 Reconciliation of consolidated federal income tax expense (benefit) from: Continuing operations $ (11,405 ) $ (29,220 ) $ 8,379 Gain on sale of discontinued operations 7,544 — — Discontinued operations 563 4,490 384 Consolidated federal income tax expense (benefit) $ (3,298 ) $ (24,730 ) $ 8,763 |
Components of Net Deferred Tax Liability | The significant components of our net deferred tax liability at December 31, 2018 and 2017 are as follows: December 31, 2018 2017 Deferred tax liabilities Net unrealized appreciation on investment securities: Equity securities $ 38,430 $ 50,839 All other securities (2,478 ) 7,599 Deferred policy acquisition costs 19,487 30,404 Investments in partnerships 2,510 3,653 Prepaid pension cost 4,158 3,416 Net bond discount accretion 296 666 Depreciation 1,063 593 Revaluation of investment basis (1) 419 545 Identifiable intangible assets (1) 1,689 1,838 Other 1,639 1,934 Gross deferred tax liability $ 67,213 $ 101,487 Deferred tax assets Financial statement reserves in excess of income tax reserves $ 19,800 $ 17,036 Unearned premium adjustment 20,406 19,389 Net operating loss carryforwards — 329 Underfunded benefit plan obligation 5,622 12,375 Post-retirement benefits other than pensions 12,035 11,942 Other-than-temporary impairment of investments 2,094 2,313 Contingent ceding commission accrual 14 317 Alternative minimum tax credit carryforward — 6,011 Compensation expense related to stock options 3,506 3,289 Other 4,648 4,145 Gross deferred tax asset $ 68,125 $ 77,146 Valuation allowance — (329 ) Deferred tax asset $ 68,125 $ 76,817 Net deferred tax liability (asset) $ (912 ) $ 24,670 (1) Related to our acquisition of Mercer Insurance Group. |
EMPLOYEE BENEFITS (Tables)
EMPLOYEE BENEFITS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |
Summary of Actual and Target Asset Allocation of Plan Assets | The following is a summary of the pension plan's actual and target asset allocations at December 31, 2018 and 2017 by asset category: Target Pension Plan Assets 2018 % of Total 2017 % of Total Allocation Fixed maturity securities - corporate bonds $ 10,051 6.1 % $ 11,003 7.0 % 0 % - 15 % Redeemable preferred stock 2,697 1.6 3,216 2.0 0 % - 10 % Equity securities 86,586 52.5 87,603 55.6 50 % - 70 % Pooled separate accounts Core plus bond separate account fund 20,222 12.3 17,948 11.4 0 % - 40 % U.S. property separate account fund 20,841 12.6 15,502 9.8 0 % - 25 % Arbitrage fund 8,716 5.3 8,506 5.4 0 % - 10 % United Life annuity 10,339 6.3 9,846 6.2 5 % - 10 % Cash and cash equivalents 5,367 3.3 4,020 2.6 0 % - 10 % Total plan assets $ 164,819 100.0 % $ 157,644 100.0 % |
Categories of Pension Plan Assets at Fair Value on Recurring Basis | The following tables present the categorization of the pension plan's assets measured at fair value on a recurring basis at December 31, 2018 and 2017 : Fair Value Measurements Description December 31, 2018 Level 1 Level 2 Level 3 Fixed maturity securities - corporate bonds $ 10,051 $ — $ 10,051 $ — Redeemable preferred stock 2,697 2,697 — — Equity securities 86,586 86,586 — — Pooled separate accounts Core plus bond separate account fund 20,222 — 20,222 — U.S. property separate account fund 20,841 — — 20,841 Arbitrage fund 8,716 — 8,716 — Money market funds 5,364 5,364 — — Total assets measured at fair value $ 154,477 $ 94,647 $ 38,989 $ 20,841 Fair Value Measurements Description December 31, 2017 Level 1 Level 2 Level 3 Fixed maturity securities - corporate bonds $ 11,003 $ — $ 11,003 $ — Redeemable preferred stock 3,216 3,216 — — Equity securities 87,603 87,603 — — Pooled separate accounts Core plus bond separate account fund 17,948 — 17,948 — U.S. property separate account fund 15,502 — — 15,502 Arbitrage fund 8,506 — 8,506 — Money market funds 4,011 4,011 — — Total assets measured at fair value $ 147,789 $ 94,830 $ 37,457 $ 15,502 |
Summary of Changes in Fair Value of Pension Plan Securities | The following tables provide a summary of the changes in fair value of the pension plan's Level 3 securities: U.S. property separate account fund Balance at January 1, 2018 $ 15,502 Unrealized gains 1,339 Company Contributions 4,000 Balance at December 31, 2018 $ 20,841 U.S. property separate account fund Balance at January 1, 2017 $ 14,330 Unrealized gains 1,172 Balance at December 31, 2017 $ 15,502 |
Schedule of Actuarial Assumptions Used | The following actuarial assumptions were used to determine the reported plan benefit obligations at December 31: Weighted-average assumptions as of Pension Benefits Post-retirement Benefits December 31, 2018 2017 2018 2017 Discount rate 4.18 % 3.65 % 4.18 % 3.65 % Rate of compensation increase 3.00 3.00 N/A N/A Weighted-average assumptions as of Pension Benefits Post-retirement Benefits January 1, 2018 2017 2016 2018 2017 2016 Discount rate 3.65 % 4.17 % 4.21 % 3.65 % 4.17 % 4.21 % Expected long-term rate of return on plan assets 6.70 7.50 7.50 N/A N/A N/A Rate of compensation increase 3.00 3.00 3.00 N/A N/A N/A |
Schedule of Health Care Cost Trend Rates | Health Care Benefits Dental Claims Years Ended December 31, 2018 2017 2018 2017 Health care cost trend rates assumed for next year 6.75 % 7.00 % 4.00 % 4.00 % Rate to which the health care trend rate is assumed to decline (ultimate trend rate) 4.50 % 4.50 % N/A N/A Year that the rate reaches the ultimate trend rate 2029 2026 N/A N/A |
Schedule of Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates | A 1.0 percent change in assumed health care cost trend rates would have the following effects: 1% Increase 1% Decrease Effect on the net periodic post-retirement health care benefit cost $ 677 $ (530 ) Effect on the accumulated post-retirement benefit obligation 5,066 (4,107 ) |
Reconciliation of Benefit Obligations, Plan Assets, and Funded Status | The following table provides a reconciliation of benefit obligations, plan assets and funded status of our plans: Pension Benefits Post-retirement Benefits Years Ended December 31, 2018 2017 2018 2017 Reconciliation of benefit obligation Benefit obligation at beginning of year $ 208,349 $ 171,876 $ 55,728 $ 46,785 Service cost 8,701 6,857 2,998 2,021 Interest cost 7,500 7,060 2,009 1,927 Actuarial loss (17,535 ) 26,963 (12,094 ) 6,326 Adjustment for plan amendment — — (16,159 ) — Benefit payments (4,859 ) (4,407 ) (1,509 ) (1,331 ) Benefit obligation at end of year (1) $ 202,156 $ 208,349 $ 30,973 $ 55,728 Reconciliation of fair value of plan assets Fair value of plan assets at beginning of year $ 157,644 $ 128,430 $ — $ — Actual return on plan assets (4,366 ) 22,225 — — Employer contributions 16,400 11,396 1,509 1,331 Benefit payments (4,859 ) (4,407 ) (1,509 ) (1,331 ) Fair value of plan assets at end of year $ 164,819 $ 157,644 $ — $ — Funded status at end of year $ (37,337 ) $ (50,705 ) $ (30,973 ) $ (55,728 ) (1) |
Schedule of Amounts Recognized in AOCI | The following table displays the effect that the unrecognized prior service cost and unrecognized actuarial loss of our plans had on accumulated other comprehensive income ("AOCI"), as reported in the accompanying Consolidated Balance Sheets: Pension Benefits Post-retirement Benefits Years Ended December 31 2018 2017 2018 2017 Amounts recognized in AOCI Unrecognized prior service cost $ — $ — $ (37,631 ) $ (26,880 ) Unrecognized actuarial (gain) loss 53,616 60,571 10,786 25,235 Total amounts recognized in AOCI $ 53,616 $ 60,571 $ (26,845 ) $ (1,645 ) |
Components of Net Periodic Benefit Cost | The components of the net periodic benefit cost for our pension and post-retirement benefit plans are as follows: Pension Plan Post-retirement Benefit Plan Years Ended December 31, 2018 2017 2016 2018 2017 2016 Net periodic benefit cost Service cost $ 8,701 $ 6,857 $ 6,490 $ 2,998 $ 2,021 $ 3,728 Interest cost 7,500 7,060 6,654 2,009 1,927 3,015 Expected return on plan assets (10,502 ) (9,650 ) (7,952 ) — — — Amortization of prior service cost — — — (5,409 ) (5,409 ) — Amortization of net loss 4,287 3,562 3,968 2,355 1,846 1,518 Net periodic benefit cost $ 9,986 $ 7,829 $ 9,160 $ 1,953 $ 385 $ 8,261 A portion of the service cost component of net periodic pension and postretirement benefit costs are capitalized and amortized as part of deferred acquisition costs and is included in the income statement line titled "amortization of deferred policy acquisition costs." The portion not related to the compensation and the other components of net periodic pension and postretirement benefit costs are included in the income statement line titled "other underwriting expenses." |
Summary of Expected Benefit Payments | The following table summarizes the expected benefits to be paid from our plans over the next 10 years : 2019 2020 2021 2022 2023 2024 - 2028 Pension benefits $ 6,280 $ 6,870 $ 7,570 $ 8,230 $ 8,940 $ 55,930 Post-retirement benefits $ 960 $ 1,030 $ 1,120 $ 1,210 $ 1,300 $ 8,480 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Activity in Stock Award Plans | The activity in the Stock Plan is displayed in the following table: Authorized Shares Available for Future Award Grants Year Ended December 31, 2018 From Inception to December 31, 2018 Beginning balance 996,828 1,900,000 Additional shares authorized — 1,500,000 Number of awards granted (151,096 ) (3,023,067 ) Number of awards forfeited or expired 45,125 513,924 Ending balance 890,857 890,857 Number of option awards exercised 238,719 1,324,614 Number of unrestricted stock awards granted 900 9,370 Number of restricted stock awards vested 20,025 58,193 Authorized Shares Available for Future Award Grants Year Ended December 31, 2018 From Inception to December 31, 2018 Beginning balance 61,813 300,000 Number of awards granted (12,650 ) (274,840 ) Number of awards forfeited or expired — 24,003 Ending balance 49,163 49,163 Number of option awards exercised 28,680 117,961 Number of restricted stock awards vested 17,269 71,541 |
Recognition of Stock-Based Compensation Expense | We expect this compensation to be recognized in subsequent years according to the following table, except with respect to awards that are accelerated by the Board of Directors, in which case we will recognize any remaining compensation expense in the period in which the awards are accelerated. 2019 $ 3,939 2020 2,289 2021 537 2022 38 2023 — Total $ 6,803 |
Analysis of Award Activity | The analysis below details the option award activity for 2018 and the awards outstanding at December 31, 2018 , for both of our plans and ad hoc options, which were granted prior to the adoption of the other plans: Options Shares Weighted-Average Exercise Price Weighted-Average Remaining Life (in years) Aggregate Intrinsic Value Outstanding at January 1, 2018 1,101,051 $ 31.16 Granted 85,517 45.03 Exercised (267,399 ) 28.30 Forfeited (20,266 ) 35.27 Expired (1,000 ) 34.39 Outstanding at December 31, 2018 897,903 $ 33.24 6.20 $ 19,944 Exercisable at December 31, 2018 458,465 $ 28.92 5.09 $ 12,162 |
Schedule of Restricted Stock Award Activity | The analysis below details the award activity for the restricted stock and restricted stock unit awards outstanding at December 31, 2018 : Restricted stock awards Shares Weighted-Average Grant Date Fair Value Non-vested at January 1, 2018 267,799 $ 36.66 Granted 79,739 46.02 Vested (40,362 ) 33.95 Forfeited (23,201 ) 33.86 Non-vested at December 31, 2018 283,975 $ 39.90 |
Weighted-average Grant-Date Fair Value Assumptions | The weighted-average grant-date fair value of the options granted under our plans has been estimated using the Black-Scholes option pricing model with the following weighted-average assumptions: December 31, 2018 2017 2016 Risk-free interest rate 2.79 % 2.23 % 1.53 % Expected volatility 21.79 % 27.58 % 25.44 % Expected option life (in years) 7 7 7 Expected dividends (in dollars) $ 1.12 $ 1.00 $ 0.88 Weighted-average grant-date fair value of options granted during the year (in dollars) $ 8.90 $ 9.93 $ 8.42 |
Summary of Stock Options Outstanding and Exercisable | The following table summarizes information regarding the stock options outstanding and exercisable at December 31, 2018 : Options Outstanding Options Exercisable Range of Exercise Prices Number Outstanding (in shares) Weighted-Average Remaining Contractual Life (in years) Weighted-Average Exercise Price Number Exercisable (in shares) Weighted-Average Exercise Price $ 15.01 - 21.00 58,349 2.20 $ 20.34 58,349 $ 20.34 21.01 - 28.00 93,155 3.54 23.32 93,155 23.32 28.01 - 35.00 375,096 5.71 29.29 227,304 29.32 35.01 - 43.00 287,910 7.65 40.79 79,657 40.64 44.80 - 44.80 80,712 9.15 44.80 — — 52.16 - 52.16 2,681 9.37 52.16 — $ — $ 15.01 - 52.16 897,903 6.20 $ 33.24 458,465 $ 28.92 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Premiums Earned by Segments | The following table sets forth our net premiums earned: Years Ended December 31, 2018 2017 2016 Continuing Operations - Property and casualty insurance business Net premiums earned Other liability $ 311,931 $ 306,480 $ 289,982 Fire and allied lines 276,193 270,716 265,221 Automobile 313,521 277,511 239,216 Workers' compensation 95,203 104,166 103,605 Fidelity and surety 24,437 24,981 22,507 Reinsurance assumed 13,228 10,650 12,765 Other 2,938 2,988 2,835 Total net premiums earned from continuing operations $ 1,037,451 $ 997,492 $ 936,131 Discontinued Operations - Life insurance business Net premiums earned Ordinary life (excluding universal life) $ 7,068 $ 35,388 $ 63,668 Universal life policy fees 3,363 13,145 11,577 Immediate annuities with life contingencies 2,515 11,691 10,533 Accident and health 45 1,096 1,434 Other 12 48 58 Total net premiums earned from discontinued operations $ 13,003 $ 61,368 $ 87,270 |
QUARTERLY SUPPLEMENTARY FINAN_2
QUARTERLY SUPPLEMENTARY FINANCIAL INFORMATION (UNAUDITED) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Data [Abstract] | |
Schedule of Unaudited Quarterly Financial Information | The following table sets forth our selected unaudited quarterly financial information from continuing operations: (In Thousands Except Share Data) Quarters First Second Third Fourth Total Year Ended December 31, 2018 Total revenues $ 250,795 $ 275,399 $ 291,910 $ 252,062 $ 1,070,166 Income (loss) before income taxes 21,573 (1,809 ) 12,598 (41,512 ) (9,150 ) Net income (loss) $ 20,364 $ 157 $ 11,070 $ (29,336 ) $ 2,255 Basic earnings per share (1) $ 0.82 $ 0.01 $ 0.44 $ (1.17 ) $ 0.09 Diluted earnings per share (1) 0.80 0.01 0.43 (1.17 ) 0.09 Year Ended December 31, 2017 Total revenues $ 251,278 $ 258,487 $ 269,617 $ 273,355 $ 1,052,737 Income (loss) before income taxes 23,006 (4,331 ) (32,394 ) 29,369 15,650 Net income (loss) $ 18,584 $ 109 $ (19,082 ) $ 45,259 $ 44,870 Basic earnings per share (1) $ 0.73 — $ (0.77 ) $ 1.81 $ 1.79 Diluted earnings per share (1) 0.72 — (0.77 ) 1.78 1.75 (1) The sum of the quarterly reported amounts may not equal the full year, as each is computed independently. The following table sets forth our selected unaudited quarterly financial information from discontinued operations: (In Thousands Except Share Data) Quarters First Second Third Fourth Total Year Ended December 31, 2018 Total revenues $ 24,755 $ — $ — $ — $ 24,755 Income (loss) before income taxes (1,349 ) — — — (1,349 ) Net income (loss) $ (1,912 ) $ — $ — $ — $ (1,912 ) Basic earnings per share (1) $ (0.08 ) $ — $ — $ — $ (0.08 ) Diluted earnings per share (1) (0.07 ) — — — (0.07 ) Year Ended December 31, 2017 Total revenues $ 31,781 $ 28,492 $ 27,054 $ 28,386 $ 115,713 Income before income taxes 2,083 4,386 1,880 2,294 10,643 Net income $ 1,352 $ 2,849 $ 1,218 $ 734 $ 6,153 Basic earnings per share (1) $ 0.05 $ 0.11 $ 0.05 $ 0.03 $ 0.24 Diluted earnings per share (1) 0.05 0.11 0.05 0.03 0.24 (1) |
EARNINGS PER COMMON SHARE (Tabl
EARNINGS PER COMMON SHARE (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Components of Basic and Diluted Earnings per Share | The components of basic and diluted earnings per share were as follows: Years Ended December 31, 2018 2017 2016 (In Thousands Except Share and Per Share Data) Basic Diluted Basic Diluted Basic Diluted Net income from continuing operations $ 2,255 $ 2,255 $ 44,870 $ 44,870 $ 49,118 $ 49,118 Weighted-average common shares outstanding 25,006,211 25,006,211 25,103,720 25,103,720 25,335,706 25,335,706 Add dilutive effect of restricted stock awards — 273,544 — 250,530 — 155,059 Add dilutive effect of stock options — 343,057 — 286,354 — 313,913 Weighted-average common shares 25,006,211 25,622,812 25,103,720 25,640,604 25,335,706 25,804,678 Earnings per common share from continuing operations $ 0.09 $ 0.09 $ 1.79 $ 1.75 $ 1.94 $ 1.90 Earnings (loss) per common share from discontinued operations (0.08 ) (0.07 ) 0.24 0.24 0.03 0.03 Gain on sale of discontinued operations, net of taxes $ 1.10 $ 1.07 $ — $ — $ — $ — Earnings per common share $ 1.11 $ 1.08 $ 2.03 $ 1.99 $ 1.97 $ 1.93 Awards excluded from diluted calculation (1) — 2,681 — — — — (1) |
LEASE COMMITMENTS (Tables)
LEASE COMMITMENTS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Leases [Abstract] | |
Schedule of Future Minimum Rental Payments | At December 31, 2018 , our future minimum rental payments were as follows: 2019 $ 7,214 2020 6,892 2021 4,635 2022 1,717 2023 1,043 Thereafter 181 Total $ 21,682 |
INTANGIBLE ASSETS (Tables)
INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Major Classes of Intangible Assets | Our major classes of intangible assets are presented in the following table: Year Ended December 31, 2018 2017 Agency relationships $ 10,338 $ 10,338 Accumulated amortization - agency relationships (6,153 ) (5,566 ) $ 4,185 $ 4,772 Software $ 3,260 $ 3,260 Accumulated amortization - software (3,260 ) (3,260 ) $ — $ — Trade names $ 1,978 $ 1,978 Accumulated amortization - trade names (1,022 ) (890 ) $ 956 $ 1,088 Favorable contract $ 286 $ 286 Accumulated amortization - favorable contract (286 ) (286 ) $ — $ — State insurance licenses (1) $ 3,020 $ 3,020 Net intangible assets $ 8,161 $ 8,880 |
Schedule of Estimated Useful Lives of Amortizable Intangible Assets | The estimated useful lives assigned to our major classes of amortizable intangible assets are as follows: Useful Life Agency relationships Fifteen years Software Two years Trade names Fifteen years Favorable contract Two years |
Schedule of Estimated Aggregate Amortization Expense | Our estimated aggregate amortization expense for each of the next five years is as follows: 2019 $ 709 2020 709 2021 709 2022 709 2023 709 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE INCOME (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Components of Accumulated Other Comprehensive Income (Loss) | The following table shows the changes in the components of our accumulated other comprehensive income (loss), net of tax, for the years ended December 31, 2018 , 2017 and 2016 : Liability for Net unrealized underfunded appreciation employee on investments benefit costs Total Balance as of January 1, 2016 $ 128,369 $ (47,932 ) $ 80,437 Change in accumulated other comprehensive income before reclassifications 8,461 19,529 27,990 Reclassification adjustments from accumulated other comprehensive income (2,938 ) 3,566 628 Balance as of December 31, 2016 $ 133,892 $ (24,837 ) $ 109,055 Change in accumulated other comprehensive income before reclassifications 48,467 (19,878 ) 28,589 Reclassification adjustments from accumulated other comprehensive income (4,152 ) 3,514 (638 ) Accumulated effect of change in enacted tax rate 36,658 (5,350 ) 31,308 Balance as of December 31, 2017 $ 214,865 $ (46,551 ) $ 168,314 Cumulative effect of change in accounting principle (191,244 ) (191,244 ) Change in accumulated other comprehensive income before reclassifications (33,564 ) 20,155 (13,409 ) Reclassification adjustments from accumulated other comprehensive income 620 5,247 5,867 Balance as of December 31, 2018 $ (9,323 ) $ (21,149 ) $ (30,472 ) |
DISCONTINUED OPERATIONS (Tables
DISCONTINUED OPERATIONS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations | The major assets and liability categories were as follows as of the dates indicated: Discontinued Operations Balance Sheets December 31, (In Thousands, Except Share Data) 2018 2017 Assets Investments Fixed maturities Held-to-maturity, at amortized cost (fair value $0 in 2018 and $34 in 2017) $ — $ 34 Available-for-sale, at fair value (amortized cost $0 in 2018 and $1,412,291 in 2017) — 1,430,025 Equity Securities available-for-sale, at fair value (cost $0 in 2018 and $5,099 in 2017) — 23,653 Mortgage loans — 3,435 Policy loans — 5,815 Other long-term investments — 16,437 — 1,479,399 Cash and cash equivalents — 15,851 Deferred policy acquisition costs — 71,151 Other assets — 19,733 Total assets held for sale $ — $ 1,586,134 Liabilities Future policy benefits and losses $ — $ 1,320,401 Deferred income taxes — 18,716 Accrued expenses and other liabilities — 8,018 Total liabilities held for sale $ — $ 1,347,135 Summary operating results of discontinued operations were as follows for the periods indicated: Discontinued Operations Statements of Income For the Years Ended December 31, (In Thousands, Except Share Data) 2018 2017 2016 Revenues Net premiums earned $ 13,003 $ 61,368 $ 87,270 Investment income, net of investment expenses 12,663 49,720 51,538 Total net realized investment gains (losses) (1,057 ) 4,008 1,156 Other income 146 617 621 Total revenues $ 24,755 $ 115,713 $ 140,585 Benefits, Losses and Expenses Losses and loss settlement expenses $ 10,823 $ 40,451 $ 31,365 Increase in liability for future policy benefits 5,023 27,632 59,969 Amortization of deferred policy acquisition costs 1,895 5,181 8,121 Other underwriting expenses 3,864 13,281 19,881 Interest on policyholders’ accounts 4,499 18,525 20,079 Total benefits, losses and expenses $ 26,104 $ 105,070 $ 139,415 Income (loss) from discontinued operations before income taxes $ (1,349 ) $ 10,643 $ 1,170 Federal income tax expense 563 4,490 384 Net income (loss) from discontinued operations $ (1,912 ) $ 6,153 $ 786 Earnings per common share from discontinued operations: Basic $ (0.08 ) $ 0.24 $ 0.03 Diluted (0.07 ) 0.24 0.03 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Dec. 31, 2017USD ($)segment | Sep. 17, 2017segment | Dec. 31, 2018USD ($)statesegmentplan | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Jan. 01, 2019USD ($) | |
Item Effected [Line Items] | ||||||
Number of operating segments | segment | 1 | 2 | 1 | |||
Percentage of the gains and profits from the Lloyds plan available to United Fire & Indemnity Company | 100.00% | |||||
Securities on deposit as required by law | $ 1,492,928,000 | $ 20,456,000 | $ 1,492,928,000 | |||
Payment for income taxes | 29,071,000 | 7,667,000 | $ 24,034,000 | |||
Federal tax refund received | 1,503,000 | 13,383,000 | 0 | |||
Interest payment | 0 | 0 | 0 | |||
Increase (decrease) in DAC asset | (6,294,000) | 0 | (6,294,000) | (6,413,000) | ||
Depreciation expense | 4,455,000 | 3,805,000 | 5,266,000 | |||
Goodwill, impairment charge | 0 | 0 | 0 | |||
Unrecognized tax benefit | 0 | $ 0 | 0 | 0 | ||
Number of equity compensation plans | plan | 2 | |||||
Accumulated other comprehensive income, net of tax | 168,314,000 | $ (30,472,000) | 168,314,000 | |||
Retained earnings | 608,700,000 | $ 715,472,000 | 608,700,000 | |||
Future minimum lease payments as a percentage of total assets (less than) | 1.00% | |||||
Minimum | ||||||
Item Effected [Line Items] | ||||||
Useful life | 2 years | |||||
Maximum | ||||||
Item Effected [Line Items] | ||||||
Useful life | 15 years | |||||
Continuing Operations - Property and Casualty Insurance | ||||||
Item Effected [Line Items] | ||||||
Number of states in which we are licensed as insurer | state | 46 | |||||
Amortization expense | $ 719,000 | 719,000 | $ 719,000 | |||
Discontinued Operations - Life Insurance | Minimum | ||||||
Item Effected [Line Items] | ||||||
Liability for future policy benefits, interest rate | 3.15% | |||||
Discontinued Operations - Life Insurance | Maximum | ||||||
Item Effected [Line Items] | ||||||
Liability for future policy benefits, interest rate | 6.00% | |||||
Accounting Standards Update 2016-01 | ||||||
Item Effected [Line Items] | ||||||
Accumulated other comprehensive income, net of tax | $ (191,244) | $ (191,244) | ||||
Net realized investment gain | $ 17,375 | |||||
Accounting Standards Update 2016-01 | Pro Forma | ||||||
Item Effected [Line Items] | ||||||
Retained earnings | $ 242,100,000 | |||||
Subsequent Event | Accounting Standards Update 2016-02 | ||||||
Item Effected [Line Items] | ||||||
Operating lease liability | $ 20,100,000 | |||||
Right-of-use asset | $ 19,700,000 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Deferred Policy Acquisition Costs) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | |||
Recorded asset at beginning of year | $ 88,102 | ||
Recorded asset at end of year | 92,796 | $ 88,102 | |
Continuing and Discontinuing Operations | |||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | |||
Recorded asset at beginning of year | 159,253 | 164,112 | $ 168,264 |
Underwriting costs deferred | 212,302 | 207,949 | 211,271 |
Amortization of deferred policy acquisition costs | (208,127) | (212,927) | (211,013) |
Ending unamortized deferred policy acquisition costs | 163,428 | 159,134 | 168,522 |
Change in shadow deferred policy acquisition costs | 7,274 | 119 | (4,410) |
Sale of discontinued operations | (77,906) | 0 | 0 |
Recorded asset at end of year | 92,796 | 159,253 | 164,112 |
Continuing Operations - Property and Casualty Insurance | |||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | |||
Recorded asset at beginning of year | 88,102 | 93,362 | 90,547 |
Underwriting costs deferred | 210,926 | 202,486 | 205,707 |
Amortization of deferred policy acquisition costs | (206,232) | (207,746) | (202,892) |
Recorded asset at end of year | 92,796 | 88,102 | 93,362 |
Discontinued Operations - Life Insurance | Discontinued Operations | |||
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | |||
Recorded asset at beginning of year | 71,151 | 70,750 | 77,717 |
Underwriting costs deferred | 1,376 | 5,463 | 5,564 |
Amortization of deferred policy acquisition costs | (1,895) | (5,181) | (8,121) |
Ending unamortized deferred policy acquisition costs | 70,632 | 71,032 | 75,160 |
Change in shadow deferred policy acquisition costs | 7,274 | 119 | (4,410) |
Sale of discontinued operations | (77,906) | 0 | 0 |
Recorded asset at end of year | $ 0 | $ 71,151 | $ 70,750 |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Property and Equipment) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 97,194 | $ 68,992 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 8,396 | 8,396 |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 69,214 | 48,677 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 5,733 | 4,645 |
Computer equipment and software | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 13,851 | 7,274 |
Airplane | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 0 | $ 0 |
SUMMARY OF SIGNIFICANT ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Useful Life) (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Computer equipment and software | |
Property, Plant and Equipment [Line Items] | |
Useful Life | 3 years |
Furniture and fixtures | |
Property, Plant and Equipment [Line Items] | |
Useful Life | 7 years |
Real estate | Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful Life | 7 years |
Real estate | Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful Life | 39 years |
Airplane | |
Property, Plant and Equipment [Line Items] | |
Useful Life | 5 years |
SUMMARY OF INVESTMENTS (Fair Va
SUMMARY OF INVESTMENTS (Fair Value of Investments) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
HELD-TO-MATURITY | ||
Amortized Cost | $ 0 | $ 150 |
Fair Value | 0 | 150 |
AVAILABLE-FOR-SALE | ||
Debt Securities, Available-for-sale, Amortized Cost | 1,761,289 | 1,516,610 |
Available-for-sale, at fair value (amortized cost $150 in 2018 and $0 in 2017) | 1,749,488 | 1,535,070 |
Fixed maturities | ||
HELD-TO-MATURITY | ||
Amortized Cost | 150 | |
Gross Unrealized Appreciation | 0 | |
Gross Unrealized Depreciation | 0 | |
Fair Value | 150 | |
AVAILABLE-FOR-SALE | ||
Available-for-sale Securities, Amortized Cost Basis | 1,516,610 | |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 27,412 | |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 8,952 | |
Available-for-sale securities | 1,535,070 | |
Fixed maturities | Discontinued Operations | ||
HELD-TO-MATURITY | ||
Amortized Cost | 34 | |
Gross Unrealized Appreciation | 0 | |
Gross Unrealized Depreciation | 0 | |
Fair Value | 34 | |
AVAILABLE-FOR-SALE | ||
Available-for-sale Securities, Amortized Cost Basis | 1,412,291 | |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 25,055 | |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 7,321 | |
Available-for-sale securities | 1,430,025 | |
Fixed maturities | Continuing and Discontinuing Operations | ||
HELD-TO-MATURITY | ||
Amortized Cost | 184 | |
Gross Unrealized Appreciation | 0 | |
Gross Unrealized Depreciation | 0 | |
Fair Value | 184 | |
AVAILABLE-FOR-SALE | ||
Debt Securities, Available-for-sale, Amortized Cost | 1,761,289 | |
Fixed Maturity, Gross Unrealized Appreciation | 11,844 | |
Fixed Maturity, Gross Unrealized Depreciation | 23,645 | |
Available-for-sale, at fair value (amortized cost $150 in 2018 and $0 in 2017) | 1,749,488 | |
Available-for-sale Securities, Amortized Cost Basis | 2,928,901 | |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 52,467 | |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 16,273 | |
Available-for-sale securities | 2,965,095 | |
U.S. Treasury | Continuing and Discontinuing Operations | ||
AVAILABLE-FOR-SALE | ||
Debt Securities, Available-for-sale, Amortized Cost | 27,632 | |
Fixed Maturity, Gross Unrealized Appreciation | 6 | |
Fixed Maturity, Gross Unrealized Depreciation | 220 | |
Available-for-sale, at fair value (amortized cost $150 in 2018 and $0 in 2017) | 27,418 | |
Available-for-sale Securities, Amortized Cost Basis | 17,073 | |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 4 | |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 186 | |
Available-for-sale securities | 16,891 | |
U.S. government agency | Continuing and Discontinuing Operations | ||
AVAILABLE-FOR-SALE | ||
Debt Securities, Available-for-sale, Amortized Cost | 215,535 | |
Fixed Maturity, Gross Unrealized Appreciation | 896 | |
Fixed Maturity, Gross Unrealized Depreciation | 1,749 | |
Available-for-sale, at fair value (amortized cost $150 in 2018 and $0 in 2017) | 214,682 | |
Available-for-sale Securities, Amortized Cost Basis | 121,574 | |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 1,311 | |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 717 | |
Available-for-sale securities | 122,168 | |
General obligations | Midwest | Continuing and Discontinuing Operations | ||
AVAILABLE-FOR-SALE | ||
Debt Securities, Available-for-sale, Amortized Cost | 94,806 | |
Fixed Maturity, Gross Unrealized Appreciation | 1,091 | |
Fixed Maturity, Gross Unrealized Depreciation | 685 | |
Available-for-sale, at fair value (amortized cost $150 in 2018 and $0 in 2017) | 95,212 | |
Available-for-sale Securities, Amortized Cost Basis | 107,689 | |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 2,446 | |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 439 | |
Available-for-sale securities | 109,696 | |
General obligations | Northeast | Continuing and Discontinuing Operations | ||
AVAILABLE-FOR-SALE | ||
Debt Securities, Available-for-sale, Amortized Cost | 37,326 | |
Fixed Maturity, Gross Unrealized Appreciation | 432 | |
Fixed Maturity, Gross Unrealized Depreciation | 103 | |
Available-for-sale, at fair value (amortized cost $150 in 2018 and $0 in 2017) | 37,655 | |
Available-for-sale Securities, Amortized Cost Basis | 47,477 | |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 1,174 | |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 10 | |
Available-for-sale securities | 48,641 | |
General obligations | South | Continuing and Discontinuing Operations | ||
AVAILABLE-FOR-SALE | ||
Debt Securities, Available-for-sale, Amortized Cost | 114,710 | |
Fixed Maturity, Gross Unrealized Appreciation | 754 | |
Fixed Maturity, Gross Unrealized Depreciation | 1,553 | |
Available-for-sale, at fair value (amortized cost $150 in 2018 and $0 in 2017) | 113,911 | |
Available-for-sale Securities, Amortized Cost Basis | 139,870 | |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 2,462 | |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 813 | |
Available-for-sale securities | 141,519 | |
General obligations | West | Continuing and Discontinuing Operations | ||
AVAILABLE-FOR-SALE | ||
Debt Securities, Available-for-sale, Amortized Cost | 107,787 | |
Fixed Maturity, Gross Unrealized Appreciation | 1,229 | |
Fixed Maturity, Gross Unrealized Depreciation | 1,175 | |
Available-for-sale, at fair value (amortized cost $150 in 2018 and $0 in 2017) | 107,841 | |
Available-for-sale Securities, Amortized Cost Basis | 111,123 | |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 2,351 | |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 463 | |
Available-for-sale securities | 113,011 | |
Special revenue | Midwest | Continuing and Discontinuing Operations | ||
AVAILABLE-FOR-SALE | ||
Debt Securities, Available-for-sale, Amortized Cost | 140,025 | |
Fixed Maturity, Gross Unrealized Appreciation | 1,609 | |
Fixed Maturity, Gross Unrealized Depreciation | 870 | |
Available-for-sale, at fair value (amortized cost $150 in 2018 and $0 in 2017) | 140,764 | |
Available-for-sale Securities, Amortized Cost Basis | 155,475 | |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 3,620 | |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 351 | |
Available-for-sale securities | 158,744 | |
Special revenue | Northeast | Continuing and Discontinuing Operations | ||
AVAILABLE-FOR-SALE | ||
Debt Securities, Available-for-sale, Amortized Cost | 62,737 | |
Fixed Maturity, Gross Unrealized Appreciation | 452 | |
Fixed Maturity, Gross Unrealized Depreciation | 1,241 | |
Available-for-sale, at fair value (amortized cost $150 in 2018 and $0 in 2017) | 61,948 | |
Available-for-sale Securities, Amortized Cost Basis | 79,028 | |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 1,351 | |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 619 | |
Available-for-sale securities | 79,760 | |
Special revenue | South | Continuing and Discontinuing Operations | ||
AVAILABLE-FOR-SALE | ||
Debt Securities, Available-for-sale, Amortized Cost | 237,848 | |
Fixed Maturity, Gross Unrealized Appreciation | 1,669 | |
Fixed Maturity, Gross Unrealized Depreciation | 3,708 | |
Available-for-sale, at fair value (amortized cost $150 in 2018 and $0 in 2017) | 235,809 | |
Available-for-sale Securities, Amortized Cost Basis | 260,145 | |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 5,218 | |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 1,851 | |
Available-for-sale securities | 263,512 | |
Special revenue | West | Continuing and Discontinuing Operations | ||
AVAILABLE-FOR-SALE | ||
Debt Securities, Available-for-sale, Amortized Cost | 143,829 | |
Fixed Maturity, Gross Unrealized Appreciation | 1,294 | |
Fixed Maturity, Gross Unrealized Depreciation | 2,203 | |
Available-for-sale, at fair value (amortized cost $150 in 2018 and $0 in 2017) | 142,920 | |
Available-for-sale Securities, Amortized Cost Basis | 156,576 | |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 2,929 | |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 1,198 | |
Available-for-sale securities | 158,307 | |
Foreign bonds | Continuing and Discontinuing Operations | ||
AVAILABLE-FOR-SALE | ||
Debt Securities, Available-for-sale, Amortized Cost | 9,698 | |
Fixed Maturity, Gross Unrealized Appreciation | 31 | |
Fixed Maturity, Gross Unrealized Depreciation | 13 | |
Available-for-sale, at fair value (amortized cost $150 in 2018 and $0 in 2017) | 9,716 | |
Available-for-sale Securities, Amortized Cost Basis | 51,361 | |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 1,441 | |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 49 | |
Available-for-sale securities | 52,753 | |
Public utilities | Continuing and Discontinuing Operations | ||
AVAILABLE-FOR-SALE | ||
Debt Securities, Available-for-sale, Amortized Cost | 56,808 | |
Fixed Maturity, Gross Unrealized Appreciation | 274 | |
Fixed Maturity, Gross Unrealized Depreciation | 1,023 | |
Available-for-sale, at fair value (amortized cost $150 in 2018 and $0 in 2017) | 56,059 | |
Available-for-sale Securities, Amortized Cost Basis | 206,028 | |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 3,386 | |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 270 | |
Available-for-sale securities | 209,144 | |
Corporate bonds | Energy | Continuing and Discontinuing Operations | ||
AVAILABLE-FOR-SALE | ||
Debt Securities, Available-for-sale, Amortized Cost | 28,909 | |
Fixed Maturity, Gross Unrealized Appreciation | 43 | |
Fixed Maturity, Gross Unrealized Depreciation | 304 | |
Available-for-sale, at fair value (amortized cost $150 in 2018 and $0 in 2017) | 28,648 | |
Available-for-sale Securities, Amortized Cost Basis | 93,191 | |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 1,972 | |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 110 | |
Available-for-sale securities | 95,053 | |
Corporate bonds | Industrials | Continuing and Discontinuing Operations | ||
AVAILABLE-FOR-SALE | ||
Debt Securities, Available-for-sale, Amortized Cost | 53,867 | |
Fixed Maturity, Gross Unrealized Appreciation | 124 | |
Fixed Maturity, Gross Unrealized Depreciation | 906 | |
Available-for-sale, at fair value (amortized cost $150 in 2018 and $0 in 2017) | 53,085 | |
Available-for-sale Securities, Amortized Cost Basis | 218,067 | |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 3,881 | |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 241 | |
Available-for-sale securities | 221,707 | |
Corporate bonds | Consumer goods and services | Continuing and Discontinuing Operations | ||
AVAILABLE-FOR-SALE | ||
Debt Securities, Available-for-sale, Amortized Cost | 54,323 | |
Fixed Maturity, Gross Unrealized Appreciation | 142 | |
Fixed Maturity, Gross Unrealized Depreciation | 819 | |
Available-for-sale, at fair value (amortized cost $150 in 2018 and $0 in 2017) | 53,646 | |
Available-for-sale Securities, Amortized Cost Basis | 183,253 | |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 3,498 | |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 494 | |
Available-for-sale securities | 186,257 | |
Corporate bonds | Health care | Continuing and Discontinuing Operations | ||
AVAILABLE-FOR-SALE | ||
Debt Securities, Available-for-sale, Amortized Cost | 16,721 | |
Fixed Maturity, Gross Unrealized Appreciation | 42 | |
Fixed Maturity, Gross Unrealized Depreciation | 105 | |
Available-for-sale, at fair value (amortized cost $150 in 2018 and $0 in 2017) | 16,658 | |
Available-for-sale Securities, Amortized Cost Basis | 74,125 | |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 1,312 | |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 29 | |
Available-for-sale securities | 75,408 | |
Corporate bonds | Technology, media and telecommunications | Continuing and Discontinuing Operations | ||
AVAILABLE-FOR-SALE | ||
Debt Securities, Available-for-sale, Amortized Cost | 26,819 | |
Fixed Maturity, Gross Unrealized Appreciation | 35 | |
Fixed Maturity, Gross Unrealized Depreciation | 678 | |
Available-for-sale, at fair value (amortized cost $150 in 2018 and $0 in 2017) | 26,176 | |
Available-for-sale Securities, Amortized Cost Basis | 146,853 | |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 2,376 | |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 250 | |
Available-for-sale securities | 148,979 | |
Corporate bonds | Financial services | Continuing and Discontinuing Operations | ||
HELD-TO-MATURITY | ||
Amortized Cost | 150 | |
Gross Unrealized Appreciation | 0 | |
Gross Unrealized Depreciation | 0 | |
Fair Value | 150 | |
AVAILABLE-FOR-SALE | ||
Debt Securities, Available-for-sale, Amortized Cost | 81,286 | |
Fixed Maturity, Gross Unrealized Appreciation | 238 | |
Fixed Maturity, Gross Unrealized Depreciation | 2,175 | |
Available-for-sale, at fair value (amortized cost $150 in 2018 and $0 in 2017) | 79,349 | |
Available-for-sale Securities, Amortized Cost Basis | 277,824 | |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 5,769 | |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 442 | |
Available-for-sale securities | 283,151 | |
Mortgage-backed securities | Continuing and Discontinuing Operations | ||
HELD-TO-MATURITY | ||
Amortized Cost | 34 | |
Gross Unrealized Appreciation | 0 | |
Gross Unrealized Depreciation | 0 | |
Fair Value | 34 | |
AVAILABLE-FOR-SALE | ||
Debt Securities, Available-for-sale, Amortized Cost | 7,642 | |
Fixed Maturity, Gross Unrealized Appreciation | 14 | |
Fixed Maturity, Gross Unrealized Depreciation | 232 | |
Available-for-sale, at fair value (amortized cost $150 in 2018 and $0 in 2017) | 7,424 | |
Available-for-sale Securities, Amortized Cost Basis | 13,828 | |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 101 | |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 238 | |
Available-for-sale securities | 13,691 | |
Collateralized mortgage obligations | Government national mortgage association | Continuing and Discontinuing Operations | ||
AVAILABLE-FOR-SALE | ||
Debt Securities, Available-for-sale, Amortized Cost | 78,055 | |
Fixed Maturity, Gross Unrealized Appreciation | 380 | |
Fixed Maturity, Gross Unrealized Depreciation | 1,734 | |
Available-for-sale, at fair value (amortized cost $150 in 2018 and $0 in 2017) | 76,701 | |
Available-for-sale Securities, Amortized Cost Basis | 157,836 | |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 1,921 | |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 2,274 | |
Available-for-sale securities | 157,483 | |
Collateralized mortgage obligations | Federal home loan mortgage corporation | Continuing and Discontinuing Operations | ||
AVAILABLE-FOR-SALE | ||
Debt Securities, Available-for-sale, Amortized Cost | 108,403 | |
Fixed Maturity, Gross Unrealized Appreciation | 524 | |
Fixed Maturity, Gross Unrealized Depreciation | 1,304 | |
Available-for-sale, at fair value (amortized cost $150 in 2018 and $0 in 2017) | 107,623 | |
Available-for-sale Securities, Amortized Cost Basis | 201,320 | |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 1,879 | |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 4,047 | |
Available-for-sale securities | 199,152 | |
Collateralized mortgage obligations | Federal national mortgage association | Continuing and Discontinuing Operations | ||
AVAILABLE-FOR-SALE | ||
Debt Securities, Available-for-sale, Amortized Cost | 53,267 | |
Fixed Maturity, Gross Unrealized Appreciation | 213 | |
Fixed Maturity, Gross Unrealized Depreciation | 732 | |
Available-for-sale, at fair value (amortized cost $150 in 2018 and $0 in 2017) | 52,748 | |
Available-for-sale Securities, Amortized Cost Basis | 104,903 | |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 1,703 | |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 1,174 | |
Available-for-sale securities | 105,432 | |
Asset-backed securities | Continuing and Discontinuing Operations | ||
AVAILABLE-FOR-SALE | ||
Debt Securities, Available-for-sale, Amortized Cost | 3,256 | |
Fixed Maturity, Gross Unrealized Appreciation | 352 | |
Fixed Maturity, Gross Unrealized Depreciation | 113 | |
Available-for-sale, at fair value (amortized cost $150 in 2018 and $0 in 2017) | $ 3,495 | |
Available-for-sale Securities, Amortized Cost Basis | 4,282 | |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 362 | |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 8 | |
Available-for-sale securities | $ 4,636 |
SUMMARY OF INVESTMENTS (Maturit
SUMMARY OF INVESTMENTS (Maturities) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Trading, Amortized Cost | ||
Amortized Cost | $ 11,277 | $ 14,582 |
Trading, Fair Value | ||
Fair Value | 13,240 | $ 16,842 |
Continuing and Discontinuing Operations | ||
Available-For-Sale, Amortized Cost | ||
Due in one year or less | 48,331 | |
Due after one year through five years | 225,816 | |
Due after five years through 10 years | 544,551 | |
Due after 10 years | 691,968 | |
Available-For-Sale, Fair Value | ||
Due in one year or less | 48,492 | |
Due after one year through five years | 226,069 | |
Due after five years through 10 years | 542,662 | |
Due after 10 years | 684,274 | |
Trading, Amortized Cost | ||
Due in one year or less | 4,408 | |
Due after one year through five years | 5,019 | |
Due after five years through 10 years | 0 | |
Due after 10 years | 1,850 | |
Trading, Fair Value | ||
Due in one year or less | 5,232 | |
Due after one year through five years | 5,872 | |
Due after five years through 10 years | 0 | |
Due after 10 years | 2,136 | |
Fixed maturities | Continuing and Discontinuing Operations | ||
Available-For-Sale, Amortized Cost | ||
Securities not categorized by contractual maturity | 1,761,289 | |
Available-For-Sale, Fair Value | ||
Securities not categorized by contractual maturity | 1,749,488 | |
Trading, Amortized Cost | ||
Amortized Cost | 11,277 | |
Trading, Fair Value | ||
Fair Value | 13,240 | |
Asset-backed securities | Continuing and Discontinuing Operations | ||
Available-For-Sale, Amortized Cost | ||
Securities not categorized by contractual maturity | 3,256 | |
Available-For-Sale, Fair Value | ||
Securities not categorized by contractual maturity | 3,495 | |
Mortgage-backed securities | Continuing and Discontinuing Operations | ||
Available-For-Sale, Amortized Cost | ||
Securities not categorized by contractual maturity | 7,642 | |
Available-For-Sale, Fair Value | ||
Securities not categorized by contractual maturity | 7,424 | |
Collateralized mortgage obligations | Continuing and Discontinuing Operations | ||
Available-For-Sale, Amortized Cost | ||
Securities not categorized by contractual maturity | 239,725 | |
Available-For-Sale, Fair Value | ||
Securities not categorized by contractual maturity | $ 237,072 |
SUMMARY OF INVESTMENTS (Net Rea
SUMMARY OF INVESTMENTS (Net Realized Investment Gains and Losses) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Gain (Loss) on Securities [Line Items] | |||
Net realized investment gains (losses) from continuing operations | $ (20,179) | $ 4,055 | $ 4,947 |
AVAILABLE-FOR-SALE | |||
Proceeds from sales | 132,250 | ||
Proceeds from sales | 132,250 | 7,404 | 1,968 |
Gross realized gains | 140 | 1,046 | 920 |
Gross realized losses | 517 | (20) | 0 |
Discontinued Operations | |||
Gain (Loss) on Securities [Line Items] | |||
Net realized investment gains (losses) from continuing operations | (1,057) | 4,008 | 1,156 |
AVAILABLE-FOR-SALE | |||
Proceeds from sales | 0 | ||
Proceeds from sales | 7,315 | 12,354 | |
Gross realized gains | 0 | 1,264 | 65 |
Gross realized losses | 0 | (78) | (639) |
Continuing and Discontinuing Operations | |||
Gain (Loss) on Securities [Line Items] | |||
Net realized investment gains (losses) from continuing operations | (21,236) | 8,063 | 6,103 |
Fixed maturities | Available-for-sale | |||
Gain (Loss) on Securities [Line Items] | |||
Net realized investment gains (losses) from continuing operations | (254) | 829 | 1,004 |
Fixed maturities | Change in fair value | |||
Gain (Loss) on Securities [Line Items] | |||
Net realized investment gains (losses) from continuing operations | (296) | 924 | 189 |
Fixed maturities | Sales | |||
Gain (Loss) on Securities [Line Items] | |||
Net realized investment gains (losses) from continuing operations | 1,226 | 244 | 931 |
Equity securities | |||
Gain (Loss) on Securities [Line Items] | |||
Net realized investment gains (losses) from continuing operations | (20,292) | 1,942 | 2,654 |
Mortgage loans | |||
Gain (Loss) on Securities [Line Items] | |||
Net realized investment gains (losses) from continuing operations | (46) | 0 | 0 |
Cash equivalents | |||
Gain (Loss) on Securities [Line Items] | |||
Net realized investment gains (losses) from continuing operations | 0 | 0 | 169 |
Real Estate | |||
Gain (Loss) on Securities [Line Items] | |||
Net realized investment gains (losses) from continuing operations | $ (517) | $ 116 | $ 0 |
SUMMARY OF INVESTMENTS (Narrati
SUMMARY OF INVESTMENTS (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Sale of held-to-maturity securities | $ 0 | $ 0 | $ 0 |
Trading securities | 13,240,000 | $ 16,842,000 | |
Remaining potential off-balance sheet contractual obligation (up to) | $ 22,301,000 |
SUMMARY OF INVESTMENTS (Net Inv
SUMMARY OF INVESTMENTS (Net Investment Income) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Other | $ 307 | $ 300 | $ 422 |
Total investment income from continuing operations | 60,554 | 57,495 | 61,794 |
Less investment expenses | 7,660 | 6,305 | 6,510 |
Net investment income from continuing operations | 52,894 | 51,190 | 55,284 |
Discontinued Operations | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Net investment income from continuing operations | 12,663 | 49,720 | 51,538 |
Continuing and Discontinuing Operations | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Net investment income from continuing operations | 65,557 | 100,910 | 106,822 |
Fixed Maturities | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Interest income | 51,356 | 44,784 | 43,147 |
Equity securities | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Dividends on equity securities | 7,731 | 7,108 | 6,448 |
Other long-term investments | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Interest income | 8,383 | 6,870 | 1,200 |
Other long-term investments | Change in Value | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Other | (10,116) | (2,812) | 10,178 |
Collateralized Mortgage Backed Securities | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Interest income | 412 | 0 | 0 |
Short-term investments | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Interest income | 606 | 120 | 47 |
Cash and cash equivalents | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Interest income | $ 1,875 | $ 1,125 | $ 352 |
SUMMARY OF INVESTMENTS (Unreali
SUMMARY OF INVESTMENTS (Unrealized Appreciation) (Details) - Continuing and Discontinuing Operations - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Change in net unrealized investment appreciation | |||
Available-for-sale fixed maturities | $ (57,475) | $ 25,573 | $ (21,271) |
Available-for-sale equity securities | 0 | 40,168 | 34,179 |
Deferred policy acquisition costs | 7,274 | 119 | (4,410) |
Income tax effect | 10,543 | (21,545) | (2,975) |
Cumulative change in accounting principles | (191,244) | 0 | 0 |
Accumulated effect of change in enacted tax rate | 0 | 36,658 | 0 |
Net unrealized investment depreciation of discontinued operations, sold | 6,714 | 0 | 0 |
Total change in net unrealized investment appreciation (depreciation), net of tax | $ (224,188) | $ 80,973 | $ 5,523 |
SUMMARY OF INVESTMENTS (Investm
SUMMARY OF INVESTMENTS (Investments in Unrealized Loss Position) (Details) $ in Thousands | Dec. 31, 2018USD ($)issue | Dec. 31, 2017USD ($)issue |
Fixed maturities | ||
Number of Issues | ||
Fixed maturities, less than 12 months | issue | 88 | |
Fixed maturities, 12 months or longer | issue | 112 | |
Fair Value | ||
Fixed maturities, less than 12 months | $ 232,489 | |
Fixed maturities, 12 months or longer | 302,815 | |
Total | 535,304 | |
Gross Unrealized Depreciation | ||
Fixed maturities, less than 12 months | 1,791 | |
Fixed maturities, 12 months or longer | 7,161 | |
Total | $ 8,952 | |
Fixed maturities | Discontinued Operations | ||
Number of Issues | ||
Fixed maturities, less than 12 months | issue | 74 | |
Fixed maturities, 12 months or longer | issue | 61 | |
Fair Value | ||
Fixed maturities, less than 12 months | $ 180,891 | |
Fixed maturities, 12 months or longer | 167,625 | |
Total | 348,516 | |
Gross Unrealized Depreciation | ||
Fixed maturities, less than 12 months | 1,415 | |
Fixed maturities, 12 months or longer | 5,906 | |
Total | $ 7,321 | |
Fixed maturities | Continuing and Discontinuing Operations | ||
Number of Issues | ||
Fixed maturities, less than 12 months | issue | 118 | |
Fixed maturities, 12 months or longer | issue | 291 | |
Fixed maturities, less than 12 months | issue | 162 | |
Fixed maturities, 12 months or longer | issue | 173 | |
Fair Value | ||
Fixed maturities, less than 12 months | $ 207,671 | |
Fixed maturities, 12 months or longer | 698,835 | |
Fixed maturities, total | 906,506 | |
Fixed maturities, less than 12 months | $ 413,380 | |
Fixed maturities, 12 months or longer | 470,440 | |
Total | 883,820 | |
Gross Unrealized Depreciation | ||
Fixed maturities, less than 12 months | 3,067 | |
Fixed maturities, 12 months or longer | 20,578 | |
Fixed maturities, total | $ 23,645 | |
Fixed maturities, less than 12 months | 3,206 | |
Fixed maturities, 12 months or longer | 13,067 | |
Total | $ 16,273 | |
U.S. Treasury | Continuing and Discontinuing Operations | ||
Number of Issues | ||
Fixed maturities, less than 12 months | issue | 1 | |
Fixed maturities, 12 months or longer | issue | 5 | |
Fixed maturities, less than 12 months | issue | 5 | |
Fixed maturities, 12 months or longer | issue | 2 | |
Fair Value | ||
Fixed maturities, less than 12 months | $ 8,018 | |
Fixed maturities, 12 months or longer | 14,645 | |
Fixed maturities, total | 22,663 | |
Fixed maturities, less than 12 months | $ 10,370 | |
Fixed maturities, 12 months or longer | 5,765 | |
Total | 16,135 | |
Gross Unrealized Depreciation | ||
Fixed maturities, less than 12 months | 7 | |
Fixed maturities, 12 months or longer | 213 | |
Fixed maturities, total | $ 220 | |
Fixed maturities, less than 12 months | 67 | |
Fixed maturities, 12 months or longer | 119 | |
Total | $ 186 | |
U.S. government agency | Continuing and Discontinuing Operations | ||
Number of Issues | ||
Fixed maturities, less than 12 months | issue | 4 | |
Fixed maturities, 12 months or longer | issue | 17 | |
Fixed maturities, less than 12 months | issue | 11 | |
Fixed maturities, 12 months or longer | issue | 5 | |
Fair Value | ||
Fixed maturities, less than 12 months | $ 17,907 | |
Fixed maturities, 12 months or longer | 80,696 | |
Fixed maturities, total | 98,603 | |
Fixed maturities, less than 12 months | $ 64,842 | |
Fixed maturities, 12 months or longer | 19,372 | |
Total | 84,214 | |
Gross Unrealized Depreciation | ||
Fixed maturities, less than 12 months | 81 | |
Fixed maturities, 12 months or longer | 1,668 | |
Fixed maturities, total | $ 1,749 | |
Fixed maturities, less than 12 months | 390 | |
Fixed maturities, 12 months or longer | 327 | |
Total | $ 717 | |
General obligations | Midwest | Continuing and Discontinuing Operations | ||
Number of Issues | ||
Fixed maturities, less than 12 months | issue | 2 | |
Fixed maturities, 12 months or longer | issue | 7 | |
Fixed maturities, less than 12 months | issue | 2 | |
Fixed maturities, 12 months or longer | issue | 3 | |
Fair Value | ||
Fixed maturities, less than 12 months | $ 2,939 | |
Fixed maturities, 12 months or longer | 23,749 | |
Fixed maturities, total | 26,688 | |
Fixed maturities, less than 12 months | $ 2,177 | |
Fixed maturities, 12 months or longer | 19,729 | |
Total | 21,906 | |
Gross Unrealized Depreciation | ||
Fixed maturities, less than 12 months | 5 | |
Fixed maturities, 12 months or longer | 680 | |
Fixed maturities, total | $ 685 | |
Fixed maturities, less than 12 months | 8 | |
Fixed maturities, 12 months or longer | 431 | |
Total | $ 439 | |
General obligations | Northeast | Continuing and Discontinuing Operations | ||
Number of Issues | ||
Fixed maturities, less than 12 months | issue | 0 | |
Fixed maturities, 12 months or longer | issue | 3 | |
Fixed maturities, less than 12 months | issue | 0 | |
Fixed maturities, 12 months or longer | issue | 1 | |
Fair Value | ||
Fixed maturities, less than 12 months | $ 0 | |
Fixed maturities, 12 months or longer | 12,110 | |
Fixed maturities, total | 12,110 | |
Fixed maturities, less than 12 months | $ 0 | |
Fixed maturities, 12 months or longer | 3,644 | |
Total | 3,644 | |
Gross Unrealized Depreciation | ||
Fixed maturities, less than 12 months | 0 | |
Fixed maturities, 12 months or longer | 103 | |
Fixed maturities, total | $ 103 | |
Fixed maturities, less than 12 months | 0 | |
Fixed maturities, 12 months or longer | 10 | |
Total | $ 10 | |
General obligations | South | Continuing and Discontinuing Operations | ||
Number of Issues | ||
Fixed maturities, less than 12 months | issue | 1 | |
Fixed maturities, 12 months or longer | issue | 22 | |
Fixed maturities, less than 12 months | issue | 3 | |
Fixed maturities, 12 months or longer | issue | 11 | |
Fair Value | ||
Fixed maturities, less than 12 months | $ 778 | |
Fixed maturities, 12 months or longer | 50,174 | |
Fixed maturities, total | 50,952 | |
Fixed maturities, less than 12 months | $ 7,959 | |
Fixed maturities, 12 months or longer | 29,545 | |
Total | 37,504 | |
Gross Unrealized Depreciation | ||
Fixed maturities, less than 12 months | 2 | |
Fixed maturities, 12 months or longer | 1,551 | |
Fixed maturities, total | $ 1,553 | |
Fixed maturities, less than 12 months | 32 | |
Fixed maturities, 12 months or longer | 781 | |
Total | $ 813 | |
General obligations | West | Continuing and Discontinuing Operations | ||
Number of Issues | ||
Fixed maturities, less than 12 months | issue | 1 | |
Fixed maturities, 12 months or longer | issue | 16 | |
Fixed maturities, less than 12 months | issue | 2 | |
Fixed maturities, 12 months or longer | issue | 8 | |
Fair Value | ||
Fixed maturities, less than 12 months | $ 1,203 | |
Fixed maturities, 12 months or longer | 48,499 | |
Fixed maturities, total | 49,702 | |
Fixed maturities, less than 12 months | $ 5,944 | |
Fixed maturities, 12 months or longer | 25,755 | |
Total | 31,699 | |
Gross Unrealized Depreciation | ||
Fixed maturities, less than 12 months | 5 | |
Fixed maturities, 12 months or longer | 1,170 | |
Fixed maturities, total | $ 1,175 | |
Fixed maturities, less than 12 months | 18 | |
Fixed maturities, 12 months or longer | 445 | |
Total | $ 463 | |
Special revenue | Midwest | Continuing and Discontinuing Operations | ||
Number of Issues | ||
Fixed maturities, less than 12 months | issue | 4 | |
Fixed maturities, 12 months or longer | issue | 19 | |
Fixed maturities, less than 12 months | issue | 2 | |
Fixed maturities, 12 months or longer | issue | 7 | |
Fair Value | ||
Fixed maturities, less than 12 months | $ 3,892 | |
Fixed maturities, 12 months or longer | 43,854 | |
Fixed maturities, total | 47,746 | |
Fixed maturities, less than 12 months | $ 3,486 | |
Fixed maturities, 12 months or longer | 19,130 | |
Total | 22,616 | |
Gross Unrealized Depreciation | ||
Fixed maturities, less than 12 months | 8 | |
Fixed maturities, 12 months or longer | 862 | |
Fixed maturities, total | $ 870 | |
Fixed maturities, less than 12 months | 15 | |
Fixed maturities, 12 months or longer | 336 | |
Total | $ 351 | |
Special revenue | Northeast | Continuing and Discontinuing Operations | ||
Number of Issues | ||
Fixed maturities, less than 12 months | issue | 0 | |
Fixed maturities, 12 months or longer | issue | 14 | |
Fixed maturities, less than 12 months | issue | 1 | |
Fixed maturities, 12 months or longer | issue | 11 | |
Fair Value | ||
Fixed maturities, less than 12 months | $ 0 | |
Fixed maturities, 12 months or longer | 37,629 | |
Fixed maturities, total | 37,629 | |
Fixed maturities, less than 12 months | $ 4,471 | |
Fixed maturities, 12 months or longer | 28,476 | |
Total | 32,947 | |
Gross Unrealized Depreciation | ||
Fixed maturities, less than 12 months | 0 | |
Fixed maturities, 12 months or longer | 1,241 | |
Fixed maturities, total | $ 1,241 | |
Fixed maturities, less than 12 months | 37 | |
Fixed maturities, 12 months or longer | 582 | |
Total | $ 619 | |
Special revenue | South | Continuing and Discontinuing Operations | ||
Number of Issues | ||
Fixed maturities, less than 12 months | issue | 4 | |
Fixed maturities, 12 months or longer | issue | 45 | |
Fixed maturities, less than 12 months | issue | 8 | |
Fixed maturities, 12 months or longer | issue | 27 | |
Fair Value | ||
Fixed maturities, less than 12 months | $ 4,298 | |
Fixed maturities, 12 months or longer | 107,016 | |
Fixed maturities, total | 111,314 | |
Fixed maturities, less than 12 months | $ 7,749 | |
Fixed maturities, 12 months or longer | 69,917 | |
Total | 77,666 | |
Gross Unrealized Depreciation | ||
Fixed maturities, less than 12 months | 30 | |
Fixed maturities, 12 months or longer | 3,678 | |
Fixed maturities, total | $ 3,708 | |
Fixed maturities, less than 12 months | 107 | |
Fixed maturities, 12 months or longer | 1,744 | |
Total | $ 1,851 | |
Special revenue | West | Continuing and Discontinuing Operations | ||
Number of Issues | ||
Fixed maturities, less than 12 months | issue | 4 | |
Fixed maturities, 12 months or longer | issue | 28 | |
Fixed maturities, less than 12 months | issue | 3 | |
Fixed maturities, 12 months or longer | issue | 22 | |
Fair Value | ||
Fixed maturities, less than 12 months | $ 11,115 | |
Fixed maturities, 12 months or longer | 69,667 | |
Fixed maturities, total | 80,782 | |
Fixed maturities, less than 12 months | $ 5,424 | |
Fixed maturities, 12 months or longer | 56,753 | |
Total | 62,177 | |
Gross Unrealized Depreciation | ||
Fixed maturities, less than 12 months | 32 | |
Fixed maturities, 12 months or longer | 2,171 | |
Fixed maturities, total | $ 2,203 | |
Fixed maturities, less than 12 months | 16 | |
Fixed maturities, 12 months or longer | 1,182 | |
Total | $ 1,198 | |
Foreign bonds | ||
Number of Issues | ||
Fixed maturities, less than 12 months | issue | 1 | |
Fixed maturities, 12 months or longer | issue | 0 | |
Fair Value | ||
Fixed maturities, less than 12 months | $ 857 | |
Fixed maturities, 12 months or longer | 0 | |
Total | 857 | |
Gross Unrealized Depreciation | ||
Fixed maturities, less than 12 months | 49 | |
Fixed maturities, 12 months or longer | 0 | |
Total | $ 49 | |
Foreign bonds | Continuing and Discontinuing Operations | ||
Number of Issues | ||
Fixed maturities, less than 12 months | issue | 1 | |
Fixed maturities, 12 months or longer | issue | 0 | |
Fair Value | ||
Fixed maturities, less than 12 months | $ 2,984 | |
Fixed maturities, 12 months or longer | 0 | |
Fixed maturities, total | 2,984 | |
Gross Unrealized Depreciation | ||
Fixed maturities, less than 12 months | 13 | |
Fixed maturities, 12 months or longer | 0 | |
Fixed maturities, total | $ 13 | |
Public utilities | Continuing and Discontinuing Operations | ||
Number of Issues | ||
Fixed maturities, less than 12 months | issue | 12 | |
Fixed maturities, 12 months or longer | issue | 8 | |
Fixed maturities, less than 12 months | issue | 8 | |
Fixed maturities, 12 months or longer | issue | 5 | |
Fair Value | ||
Fixed maturities, less than 12 months | $ 25,781 | |
Fixed maturities, 12 months or longer | 17,253 | |
Fixed maturities, total | 43,034 | |
Fixed maturities, less than 12 months | $ 19,186 | |
Fixed maturities, 12 months or longer | 8,446 | |
Total | 27,632 | |
Gross Unrealized Depreciation | ||
Fixed maturities, less than 12 months | 552 | |
Fixed maturities, 12 months or longer | 471 | |
Fixed maturities, total | $ 1,023 | |
Fixed maturities, less than 12 months | 79 | |
Fixed maturities, 12 months or longer | 191 | |
Total | $ 270 | |
Corporate bonds | Financial services | Continuing and Discontinuing Operations | ||
Number of Issues | ||
Fixed maturities, less than 12 months | issue | 13 | |
Fixed maturities, 12 months or longer | issue | 13 | |
Fixed maturities, less than 12 months | issue | 22 | |
Fixed maturities, 12 months or longer | issue | 4 | |
Fair Value | ||
Fixed maturities, less than 12 months | $ 30,177 | |
Fixed maturities, 12 months or longer | 32,855 | |
Fixed maturities, total | 63,032 | |
Fixed maturities, less than 12 months | $ 50,144 | |
Fixed maturities, 12 months or longer | 11,389 | |
Total | 61,533 | |
Gross Unrealized Depreciation | ||
Fixed maturities, less than 12 months | 650 | |
Fixed maturities, 12 months or longer | 1,525 | |
Fixed maturities, total | $ 2,175 | |
Fixed maturities, less than 12 months | 256 | |
Fixed maturities, 12 months or longer | 186 | |
Total | $ 442 | |
Corporate bonds | Energy | Continuing and Discontinuing Operations | ||
Number of Issues | ||
Fixed maturities, less than 12 months | issue | 7 | |
Fixed maturities, 12 months or longer | issue | 2 | |
Fixed maturities, less than 12 months | issue | 1 | |
Fixed maturities, 12 months or longer | issue | 1 | |
Fair Value | ||
Fixed maturities, less than 12 months | $ 12,556 | |
Fixed maturities, 12 months or longer | 4,099 | |
Fixed maturities, total | 16,655 | |
Fixed maturities, less than 12 months | $ 2,236 | |
Fixed maturities, 12 months or longer | 1,606 | |
Total | 3,842 | |
Gross Unrealized Depreciation | ||
Fixed maturities, less than 12 months | 148 | |
Fixed maturities, 12 months or longer | 156 | |
Fixed maturities, total | $ 304 | |
Fixed maturities, less than 12 months | 13 | |
Fixed maturities, 12 months or longer | 97 | |
Total | $ 110 | |
Corporate bonds | Industrials | Continuing and Discontinuing Operations | ||
Number of Issues | ||
Fixed maturities, less than 12 months | issue | 9 | |
Fixed maturities, 12 months or longer | issue | 4 | |
Fixed maturities, less than 12 months | issue | 10 | |
Fixed maturities, 12 months or longer | issue | 2 | |
Fair Value | ||
Fixed maturities, less than 12 months | $ 21,970 | |
Fixed maturities, 12 months or longer | 11,040 | |
Fixed maturities, total | 33,010 | |
Fixed maturities, less than 12 months | $ 27,773 | |
Fixed maturities, 12 months or longer | 4,275 | |
Total | 32,048 | |
Gross Unrealized Depreciation | ||
Fixed maturities, less than 12 months | 397 | |
Fixed maturities, 12 months or longer | 509 | |
Fixed maturities, total | $ 906 | |
Fixed maturities, less than 12 months | 146 | |
Fixed maturities, 12 months or longer | 95 | |
Total | $ 241 | |
Corporate bonds | Consumer goods and services | Continuing and Discontinuing Operations | ||
Number of Issues | ||
Fixed maturities, less than 12 months | issue | 14 | |
Fixed maturities, 12 months or longer | issue | 5 | |
Fixed maturities, less than 12 months | issue | 14 | |
Fixed maturities, 12 months or longer | issue | 3 | |
Fair Value | ||
Fixed maturities, less than 12 months | $ 30,399 | |
Fixed maturities, 12 months or longer | 9,554 | |
Fixed maturities, total | 39,953 | |
Fixed maturities, less than 12 months | $ 32,781 | |
Fixed maturities, 12 months or longer | 6,813 | |
Total | 39,594 | |
Gross Unrealized Depreciation | ||
Fixed maturities, less than 12 months | 527 | |
Fixed maturities, 12 months or longer | 292 | |
Fixed maturities, total | $ 819 | |
Fixed maturities, less than 12 months | 248 | |
Fixed maturities, 12 months or longer | 246 | |
Total | $ 494 | |
Corporate bonds | Health care | Continuing and Discontinuing Operations | ||
Number of Issues | ||
Fixed maturities, less than 12 months | issue | 3 | |
Fixed maturities, 12 months or longer | issue | 1 | |
Fixed maturities, less than 12 months | issue | 4 | |
Fixed maturities, 12 months or longer | issue | 0 | |
Fair Value | ||
Fixed maturities, less than 12 months | $ 6,203 | |
Fixed maturities, 12 months or longer | 345 | |
Fixed maturities, total | 6,548 | |
Fixed maturities, less than 12 months | $ 9,947 | |
Fixed maturities, 12 months or longer | 0 | |
Total | 9,947 | |
Gross Unrealized Depreciation | ||
Fixed maturities, less than 12 months | 97 | |
Fixed maturities, 12 months or longer | 8 | |
Fixed maturities, total | $ 105 | |
Fixed maturities, less than 12 months | 29 | |
Fixed maturities, 12 months or longer | 0 | |
Total | $ 29 | |
Corporate bonds | Technology, media and telecommunications | Continuing and Discontinuing Operations | ||
Number of Issues | ||
Fixed maturities, less than 12 months | issue | 6 | |
Fixed maturities, 12 months or longer | issue | 5 | |
Fixed maturities, less than 12 months | issue | 12 | |
Fixed maturities, 12 months or longer | issue | 3 | |
Fair Value | ||
Fixed maturities, less than 12 months | $ 12,638 | |
Fixed maturities, 12 months or longer | 9,619 | |
Fixed maturities, total | 22,257 | |
Fixed maturities, less than 12 months | $ 35,319 | |
Fixed maturities, 12 months or longer | 10,413 | |
Total | 45,732 | |
Gross Unrealized Depreciation | ||
Fixed maturities, less than 12 months | 288 | |
Fixed maturities, 12 months or longer | 390 | |
Fixed maturities, total | $ 678 | |
Fixed maturities, less than 12 months | 122 | |
Fixed maturities, 12 months or longer | 128 | |
Total | $ 250 | |
Mortgage-backed securities | Continuing and Discontinuing Operations | ||
Number of Issues | ||
Fixed maturities, less than 12 months | issue | 22 | |
Fixed maturities, 12 months or longer | issue | 22 | |
Fixed maturities, less than 12 months | issue | 10 | |
Fixed maturities, 12 months or longer | issue | 10 | |
Fair Value | ||
Fixed maturities, less than 12 months | $ 1,539 | |
Fixed maturities, 12 months or longer | 4,166 | |
Fixed maturities, total | 5,705 | |
Fixed maturities, less than 12 months | $ 2,458 | |
Fixed maturities, 12 months or longer | 6,641 | |
Total | 9,099 | |
Gross Unrealized Depreciation | ||
Fixed maturities, less than 12 months | 34 | |
Fixed maturities, 12 months or longer | 198 | |
Fixed maturities, total | $ 232 | |
Fixed maturities, less than 12 months | 18 | |
Fixed maturities, 12 months or longer | 220 | |
Total | $ 238 | |
Collateralized mortgage obligations | Government national mortgage association | Continuing and Discontinuing Operations | ||
Number of Issues | ||
Fixed maturities, less than 12 months | issue | 2 | |
Fixed maturities, 12 months or longer | issue | 22 | |
Fixed maturities, less than 12 months | issue | 20 | |
Fixed maturities, 12 months or longer | issue | 17 | |
Fair Value | ||
Fixed maturities, less than 12 months | $ 3,797 | |
Fixed maturities, 12 months or longer | 44,690 | |
Fixed maturities, total | 48,487 | |
Fixed maturities, less than 12 months | $ 49,764 | |
Fixed maturities, 12 months or longer | 46,969 | |
Total | 96,733 | |
Gross Unrealized Depreciation | ||
Fixed maturities, less than 12 months | 55 | |
Fixed maturities, 12 months or longer | 1,679 | |
Fixed maturities, total | $ 1,734 | |
Fixed maturities, less than 12 months | 629 | |
Fixed maturities, 12 months or longer | 1,645 | |
Total | $ 2,274 | |
Collateralized mortgage obligations | Federal home loan mortgage corporation | Continuing and Discontinuing Operations | ||
Number of Issues | ||
Fixed maturities, less than 12 months | issue | 3 | |
Fixed maturities, 12 months or longer | issue | 18 | |
Fixed maturities, less than 12 months | issue | 11 | |
Fixed maturities, 12 months or longer | issue | 20 | |
Fair Value | ||
Fixed maturities, less than 12 months | $ 4,541 | |
Fixed maturities, 12 months or longer | 38,189 | |
Fixed maturities, total | 42,730 | |
Fixed maturities, less than 12 months | $ 37,543 | |
Fixed maturities, 12 months or longer | 75,679 | |
Total | 113,222 | |
Gross Unrealized Depreciation | ||
Fixed maturities, less than 12 months | 20 | |
Fixed maturities, 12 months or longer | 1,284 | |
Fixed maturities, total | $ 1,304 | |
Fixed maturities, less than 12 months | 577 | |
Fixed maturities, 12 months or longer | 3,470 | |
Total | $ 4,047 | |
Collateralized mortgage obligations | Federal national mortgage association | Continuing and Discontinuing Operations | ||
Number of Issues | ||
Fixed maturities, less than 12 months | issue | 4 | |
Fixed maturities, 12 months or longer | issue | 15 | |
Fixed maturities, less than 12 months | issue | 11 | |
Fixed maturities, 12 months or longer | issue | 11 | |
Fair Value | ||
Fixed maturities, less than 12 months | $ 2,107 | |
Fixed maturities, 12 months or longer | 38,986 | |
Fixed maturities, total | 41,093 | |
Fixed maturities, less than 12 months | $ 31,958 | |
Fixed maturities, 12 months or longer | 20,123 | |
Total | 52,081 | |
Gross Unrealized Depreciation | ||
Fixed maturities, less than 12 months | 3 | |
Fixed maturities, 12 months or longer | 729 | |
Fixed maturities, total | $ 732 | |
Fixed maturities, less than 12 months | 342 | |
Fixed maturities, 12 months or longer | 832 | |
Total | $ 1,174 | |
Asset-backed securities | Continuing and Discontinuing Operations | ||
Number of Issues | ||
Fixed maturities, less than 12 months | issue | 1 | |
Fixed maturities, 12 months or longer | issue | 0 | |
Fixed maturities, less than 12 months | issue | 1 | |
Fixed maturities, 12 months or longer | issue | 0 | |
Fair Value | ||
Fixed maturities, less than 12 months | $ 2,829 | |
Fixed maturities, 12 months or longer | 0 | |
Fixed maturities, total | 2,829 | |
Fixed maturities, less than 12 months | $ 992 | |
Fixed maturities, 12 months or longer | 0 | |
Total | 992 | |
Gross Unrealized Depreciation | ||
Fixed maturities, less than 12 months | 113 | |
Fixed maturities, 12 months or longer | 0 | |
Fixed maturities, total | $ 113 | |
Fixed maturities, less than 12 months | 8 | |
Fixed maturities, 12 months or longer | 0 | |
Total | $ 8 |
FAIR VALUE OF FINANCIAL INSTR_3
FAIR VALUE OF FINANCIAL INSTRUMENTS (Narrative) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans and Leases Receivable, Allowance | $ 46 | $ 0 |
Other Assets | Rabbi Trust | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Corporate-owned life insurance | $ 4,907 |
FAIR VALUE OF FINANCIAL INSTR_4
FAIR VALUE OF FINANCIAL INSTRUMENTS (Carrying Value and Estimated Fair Value) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Investments | ||
Held-to-maturity securities | $ 0 | $ 150 |
Trading securities | 13,240 | 16,842 |
Equity securities | 248,361 | 287,344 |
Mortgage loans | 25,782 | 0 |
Fair Value | ||
Investments | ||
Equity securities | 248,361 | 287,344 |
Mortgage loans | 26,021 | 0 |
Other long-term investments | 37,077 | 49,352 |
Short-term investments | 175 | 175 |
Cash and cash equivalents | 64,454 | 95,562 |
Corporate-owned life insurance | 4,907 | 4,029 |
Fair Value | Fixed Maturities | ||
Investments | ||
Held-to-maturity securities | 0 | 150 |
Available-for-sale securities | 1,749,488 | 1,535,070 |
Trading securities | 13,240 | 16,842 |
Carrying Value | ||
Investments | ||
Equity securities | 248,361 | 287,344 |
Mortgage loans | 25,782 | 0 |
Other long-term investments | 37,077 | 49,352 |
Short-term investments | 175 | 175 |
Cash and cash equivalents | 64,454 | 95,562 |
Corporate-owned life insurance | 4,907 | 4,029 |
Carrying Value | Fixed Maturities | ||
Investments | ||
Held-to-maturity securities | 0 | 150 |
Available-for-sale securities | 1,749,488 | 1,535,070 |
Trading securities | 13,240 | 16,842 |
Discontinued Operations | Fair Value | ||
Investments | ||
Mortgage loans | 0 | 3,594 |
Policy loans | 0 | 5,815 |
Other long-term investments | 0 | 16,437 |
Cash and cash equivalents | 0 | 15,851 |
Policy reserves | ||
Annuity (accumulations) | 0 | 591,702 |
Annuity (benefit payments) | 0 | 147,038 |
Discontinued Operations | Fair Value | Fixed Maturities | ||
Investments | ||
Held-to-maturity securities | 0 | 34 |
Available-for-sale securities | 0 | 1,430,025 |
Discontinued Operations | Fair Value | Equity securities | ||
Investments | ||
Available-for-sale securities | 0 | 23,653 |
Discontinued Operations | Carrying Value | ||
Investments | ||
Mortgage loans | 0 | 3,435 |
Policy loans | 0 | 5,815 |
Other long-term investments | 0 | 16,437 |
Cash and cash equivalents | 0 | 15,851 |
Policy reserves | ||
Annuity (accumulations) | 0 | 611,866 |
Annuity (benefit payments) | 0 | 93,560 |
Discontinued Operations | Carrying Value | Fixed Maturities | ||
Investments | ||
Held-to-maturity securities | 0 | 34 |
Available-for-sale securities | 0 | 1,430,025 |
Discontinued Operations | Carrying Value | Equity securities | ||
Investments | ||
Available-for-sale securities | $ 0 | $ 23,653 |
FAIR VALUE OF FINANCIAL INSTR_5
FAIR VALUE OF FINANCIAL INSTRUMENTS (Financial Instruments Measured at Fair Value) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading and Equity Securities | $ 13,240 | $ 16,842 |
Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Corporate-Owned Life Insurance | ||
U.S. Treasury | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 16,891 | |
U.S. government agency | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 122,168 | |
Foreign bonds | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 52,753 | |
Public utilities | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 209,144 | |
Corporate bonds | Energy | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 95,053 | |
Corporate bonds | Industrials | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 221,707 | |
Corporate bonds | Consumer goods and services | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 186,257 | |
Corporate bonds | Health care | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 75,408 | |
Corporate bonds | Technology, media and telecommunications | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 148,979 | |
Corporate bonds | Financial services | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 283,151 | |
Mortgage-backed securities | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 13,691 | |
Collateralized mortgage obligations | Government national mortgage association | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 157,483 | |
Collateralized mortgage obligations | Federal home loan mortgage corporation | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 199,152 | |
Collateralized mortgage obligations | Federal national mortgage association | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 105,432 | |
Asset-backed securities | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 4,636 | |
Fixed maturities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 1,535,070 | |
Fixed maturities | Discontinued Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 1,430,025 | |
Fixed maturities | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 2,965,095 | |
Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-Term Investments | 175 | |
Money Market Accounts | 6,147 | |
Corporate-Owned Life Insurance | 4,029 | |
Recurring | Discontinued Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-Term Investments | 0 | |
Money Market Accounts | 10,677 | |
Corporate-Owned Life Insurance | 0 | |
Recurring | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading and Equity Securities | 248,361 | 16,842 |
Short-Term Investments | 175 | 175 |
Money Market Accounts | 3,275 | 16,824 |
Corporate-Owned Life Insurance | 4,907 | 4,029 |
Total Assets Measured at Fair Value | 2,019,446 | 3,313,962 |
Recurring | U.S. Treasury | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 27,418 | 16,891 |
Recurring | U.S. government agency | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 214,682 | 122,168 |
Recurring | States, municipalities and political subdivisions | General obligations | Midwest | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 95,212 | 109,696 |
Recurring | States, municipalities and political subdivisions | General obligations | Northeast | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 37,655 | 48,641 |
Recurring | States, municipalities and political subdivisions | General obligations | South | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 113,911 | 141,519 |
Recurring | States, municipalities and political subdivisions | General obligations | West | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 107,841 | 113,011 |
Recurring | States, municipalities and political subdivisions | Special revenue | Midwest | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 140,764 | 158,744 |
Recurring | States, municipalities and political subdivisions | Special revenue | Northeast | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 61,948 | 79,760 |
Recurring | States, municipalities and political subdivisions | Special revenue | South | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 235,809 | 263,512 |
Recurring | States, municipalities and political subdivisions | Special revenue | West | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 142,920 | 158,307 |
Recurring | Foreign bonds | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 9,716 | 52,753 |
Recurring | Public utilities | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 56,059 | 209,144 |
Recurring | Corporate bonds | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading and Equity Securities | 13,240 | |
Recurring | Corporate bonds | Energy | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 28,648 | 95,053 |
Recurring | Corporate bonds | Industrials | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 53,085 | 221,707 |
Trading and Equity Securities | 397 | 2,220 |
Recurring | Corporate bonds | Consumer goods and services | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 53,646 | 186,257 |
Trading and Equity Securities | 1,599 | 1,535 |
Recurring | Corporate bonds | Health care | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 16,658 | 75,408 |
Trading and Equity Securities | 3,236 | 3,741 |
Recurring | Corporate bonds | Technology, media and telecommunications | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 26,176 | 148,979 |
Trading and Equity Securities | 3,028 | 1,221 |
Recurring | Corporate bonds | Financial services | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 79,349 | 283,151 |
Trading and Equity Securities | 2,231 | 5,566 |
Recurring | Mortgage-backed securities | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 7,424 | 13,691 |
Recurring | Collateralized mortgage obligations | Government national mortgage association | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 76,701 | 157,483 |
Recurring | Collateralized mortgage obligations | Federal home loan mortgage corporation | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 107,623 | 199,152 |
Recurring | Collateralized mortgage obligations | Federal national mortgage association | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 52,748 | 105,432 |
Recurring | Asset-backed securities | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 3,495 | 4,636 |
Recurring | Fixed maturities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 1,535,070 | |
Trading and Equity Securities | 16,842 | |
Recurring | Fixed maturities | Discontinued Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 1,430,025 | |
Trading and Equity Securities | 0 | |
Recurring | Fixed maturities | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 1,749,488 | 2,965,095 |
Recurring | Nonredeemable preferred stocks | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading and Equity Securities | 5,651 | 3,838 |
Recurring | Equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 287,344 | |
Recurring | Equity securities | Discontinued Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 23,653 | |
Recurring | Equity securities | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 310,997 | |
Trading and Equity Securities | 310,997 | |
Recurring | Equity securities | Public utilities | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading and Equity Securities | 15,949 | 23,313 |
Recurring | Equity securities | Energy | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading and Equity Securities | 10,975 | 14,755 |
Recurring | Equity securities | Industrials | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading and Equity Securities | 53,536 | 67,508 |
Recurring | Equity securities | Consumer goods and services | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading and Equity Securities | 24,465 | 27,002 |
Recurring | Equity securities | Health care | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading and Equity Securities | 22,286 | 40,428 |
Recurring | Equity securities | Technology, media and telecommunications | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading and Equity Securities | 13,944 | 17,508 |
Recurring | Equity securities | Financial services | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading and Equity Securities | 101,555 | 116,645 |
Recurring | Redeemable preferred stocks | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading and Equity Securities | 2,749 | 2,559 |
Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-Term Investments | 175 | |
Money Market Accounts | 6,147 | |
Corporate-Owned Life Insurance | 0 | |
Recurring | Level 1 | Discontinued Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-Term Investments | 0 | |
Money Market Accounts | 10,677 | |
Corporate-Owned Life Insurance | 0 | |
Recurring | Level 1 | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading and Equity Securities | 247,766 | 2,559 |
Short-Term Investments | 175 | 175 |
Money Market Accounts | 3,275 | 16,824 |
Corporate-Owned Life Insurance | 0 | 0 |
Total Assets Measured at Fair Value | 253,965 | 329,671 |
Recurring | Level 1 | U.S. Treasury | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Recurring | Level 1 | U.S. government agency | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Recurring | Level 1 | States, municipalities and political subdivisions | General obligations | Midwest | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Recurring | Level 1 | States, municipalities and political subdivisions | General obligations | Northeast | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Recurring | Level 1 | States, municipalities and political subdivisions | General obligations | South | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Recurring | Level 1 | States, municipalities and political subdivisions | General obligations | West | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Recurring | Level 1 | States, municipalities and political subdivisions | Special revenue | Midwest | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Recurring | Level 1 | States, municipalities and political subdivisions | Special revenue | Northeast | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Recurring | Level 1 | States, municipalities and political subdivisions | Special revenue | South | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Recurring | Level 1 | States, municipalities and political subdivisions | Special revenue | West | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Recurring | Level 1 | Foreign bonds | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Recurring | Level 1 | Public utilities | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Recurring | Level 1 | Corporate bonds | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading and Equity Securities | 2,749 | |
Recurring | Level 1 | Corporate bonds | Energy | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Recurring | Level 1 | Corporate bonds | Industrials | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Trading and Equity Securities | 0 | 0 |
Recurring | Level 1 | Corporate bonds | Consumer goods and services | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Trading and Equity Securities | 0 | 0 |
Recurring | Level 1 | Corporate bonds | Health care | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Trading and Equity Securities | 0 | 0 |
Recurring | Level 1 | Corporate bonds | Technology, media and telecommunications | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Trading and Equity Securities | 0 | 0 |
Recurring | Level 1 | Corporate bonds | Financial services | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Trading and Equity Securities | 0 | 0 |
Recurring | Level 1 | Mortgage-backed securities | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Recurring | Level 1 | Collateralized mortgage obligations | Government national mortgage association | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Recurring | Level 1 | Collateralized mortgage obligations | Federal home loan mortgage corporation | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Recurring | Level 1 | Collateralized mortgage obligations | Federal national mortgage association | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Recurring | Level 1 | Asset-backed securities | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Recurring | Level 1 | Fixed maturities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | |
Trading and Equity Securities | 2,559 | |
Recurring | Level 1 | Fixed maturities | Discontinued Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | |
Trading and Equity Securities | 0 | |
Recurring | Level 1 | Fixed maturities | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Recurring | Level 1 | Nonredeemable preferred stocks | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading and Equity Securities | 5,056 | 2,956 |
Recurring | Level 1 | Equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 286,462 | |
Recurring | Level 1 | Equity securities | Discontinued Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 23,651 | |
Recurring | Level 1 | Equity securities | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 310,113 | |
Trading and Equity Securities | 310,113 | |
Recurring | Level 1 | Equity securities | Public utilities | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading and Equity Securities | 15,949 | 23,313 |
Recurring | Level 1 | Equity securities | Energy | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading and Equity Securities | 10,975 | 14,755 |
Recurring | Level 1 | Equity securities | Industrials | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading and Equity Securities | 53,536 | 67,506 |
Recurring | Level 1 | Equity securities | Consumer goods and services | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading and Equity Securities | 24,465 | 27,002 |
Recurring | Level 1 | Equity securities | Health care | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading and Equity Securities | 22,286 | 40,428 |
Recurring | Level 1 | Equity securities | Technology, media and telecommunications | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading and Equity Securities | 13,944 | 17,508 |
Recurring | Level 1 | Equity securities | Financial services | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading and Equity Securities | 101,555 | 116,645 |
Recurring | Level 1 | Redeemable preferred stocks | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading and Equity Securities | 2,749 | 2,559 |
Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-Term Investments | 0 | |
Money Market Accounts | 0 | |
Corporate-Owned Life Insurance | 4,029 | |
Recurring | Level 2 | Discontinued Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-Term Investments | 0 | |
Money Market Accounts | 0 | |
Corporate-Owned Life Insurance | 0 | |
Recurring | Level 2 | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading and Equity Securities | 0 | 14,283 |
Short-Term Investments | 0 | 0 |
Money Market Accounts | 0 | 0 |
Corporate-Owned Life Insurance | 4,907 | 4,029 |
Total Assets Measured at Fair Value | 1,763,970 | 2,974,417 |
Recurring | Level 2 | U.S. Treasury | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 27,418 | 16,891 |
Recurring | Level 2 | U.S. government agency | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 214,682 | 122,168 |
Recurring | Level 2 | States, municipalities and political subdivisions | General obligations | Midwest | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 95,212 | 109,696 |
Recurring | Level 2 | States, municipalities and political subdivisions | General obligations | Northeast | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 37,655 | 48,641 |
Recurring | Level 2 | States, municipalities and political subdivisions | General obligations | South | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 113,911 | 141,519 |
Recurring | Level 2 | States, municipalities and political subdivisions | General obligations | West | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 107,841 | 113,011 |
Recurring | Level 2 | States, municipalities and political subdivisions | Special revenue | Midwest | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 140,764 | 158,744 |
Recurring | Level 2 | States, municipalities and political subdivisions | Special revenue | Northeast | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 61,948 | 79,760 |
Recurring | Level 2 | States, municipalities and political subdivisions | Special revenue | South | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 235,809 | 263,512 |
Recurring | Level 2 | States, municipalities and political subdivisions | Special revenue | West | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 142,920 | 158,307 |
Recurring | Level 2 | Foreign bonds | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 9,716 | 52,753 |
Recurring | Level 2 | Public utilities | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 56,059 | 209,144 |
Recurring | Level 2 | Corporate bonds | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading and Equity Securities | 10,491 | |
Recurring | Level 2 | Corporate bonds | Energy | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 28,648 | 95,053 |
Recurring | Level 2 | Corporate bonds | Industrials | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 53,085 | 221,707 |
Trading and Equity Securities | 397 | 2,220 |
Recurring | Level 2 | Corporate bonds | Consumer goods and services | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 53,646 | 185,589 |
Trading and Equity Securities | 1,599 | 1,535 |
Recurring | Level 2 | Corporate bonds | Health care | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 16,658 | 75,408 |
Trading and Equity Securities | 3,236 | 3,741 |
Recurring | Level 2 | Corporate bonds | Technology, media and telecommunications | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 26,176 | 148,979 |
Trading and Equity Securities | 3,028 | 1,221 |
Recurring | Level 2 | Corporate bonds | Financial services | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 79,099 | 275,474 |
Trading and Equity Securities | 2,231 | 5,566 |
Recurring | Level 2 | Mortgage-backed securities | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 7,424 | 13,691 |
Recurring | Level 2 | Collateralized mortgage obligations | Government national mortgage association | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 76,701 | 157,483 |
Recurring | Level 2 | Collateralized mortgage obligations | Federal home loan mortgage corporation | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 107,623 | 199,152 |
Recurring | Level 2 | Collateralized mortgage obligations | Federal national mortgage association | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 52,748 | 105,432 |
Recurring | Level 2 | Asset-backed securities | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 2,829 | 3,989 |
Recurring | Level 2 | Fixed maturities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 1,534,323 | |
Trading and Equity Securities | 14,283 | |
Recurring | Level 2 | Fixed maturities | Discontinued Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 1,421,780 | |
Trading and Equity Securities | 0 | |
Recurring | Level 2 | Fixed maturities | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 1,748,572 | 2,956,103 |
Recurring | Level 2 | Nonredeemable preferred stocks | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading and Equity Securities | 0 | 0 |
Recurring | Level 2 | Equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | |
Recurring | Level 2 | Equity securities | Discontinued Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 2 | |
Recurring | Level 2 | Equity securities | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 2 | |
Trading and Equity Securities | 2 | |
Recurring | Level 2 | Equity securities | Public utilities | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading and Equity Securities | 0 | 0 |
Recurring | Level 2 | Equity securities | Energy | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading and Equity Securities | 0 | 0 |
Recurring | Level 2 | Equity securities | Industrials | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading and Equity Securities | 0 | 2 |
Recurring | Level 2 | Equity securities | Consumer goods and services | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading and Equity Securities | 0 | 0 |
Recurring | Level 2 | Equity securities | Health care | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading and Equity Securities | 0 | 0 |
Recurring | Level 2 | Equity securities | Technology, media and telecommunications | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading and Equity Securities | 0 | 0 |
Recurring | Level 2 | Equity securities | Financial services | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading and Equity Securities | 0 | 0 |
Recurring | Level 2 | Redeemable preferred stocks | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading and Equity Securities | 0 | 0 |
Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-Term Investments | 0 | |
Money Market Accounts | 0 | |
Corporate-Owned Life Insurance | 0 | |
Recurring | Level 3 | Discontinued Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-Term Investments | 0 | |
Money Market Accounts | 0 | |
Corporate-Owned Life Insurance | 0 | |
Recurring | Level 3 | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading and Equity Securities | 595 | 0 |
Short-Term Investments | 0 | 0 |
Money Market Accounts | 0 | 0 |
Corporate-Owned Life Insurance | 0 | 0 |
Total Assets Measured at Fair Value | 1,511 | 9,874 |
Recurring | Level 3 | U.S. Treasury | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Recurring | Level 3 | U.S. government agency | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Recurring | Level 3 | States, municipalities and political subdivisions | General obligations | Midwest | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Recurring | Level 3 | States, municipalities and political subdivisions | General obligations | Northeast | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Recurring | Level 3 | States, municipalities and political subdivisions | General obligations | South | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Recurring | Level 3 | States, municipalities and political subdivisions | General obligations | West | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Recurring | Level 3 | States, municipalities and political subdivisions | Special revenue | Midwest | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Recurring | Level 3 | States, municipalities and political subdivisions | Special revenue | Northeast | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Recurring | Level 3 | States, municipalities and political subdivisions | Special revenue | South | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Recurring | Level 3 | States, municipalities and political subdivisions | Special revenue | West | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Recurring | Level 3 | Foreign bonds | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Recurring | Level 3 | Public utilities | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Recurring | Level 3 | Corporate bonds | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading and Equity Securities | 0 | |
Recurring | Level 3 | Corporate bonds | Energy | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Recurring | Level 3 | Corporate bonds | Industrials | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Trading and Equity Securities | 0 | 0 |
Recurring | Level 3 | Corporate bonds | Consumer goods and services | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 668 |
Trading and Equity Securities | 0 | 0 |
Recurring | Level 3 | Corporate bonds | Health care | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Trading and Equity Securities | 0 | 0 |
Recurring | Level 3 | Corporate bonds | Technology, media and telecommunications | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Trading and Equity Securities | 0 | 0 |
Recurring | Level 3 | Corporate bonds | Financial services | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 250 | 7,677 |
Trading and Equity Securities | 0 | 0 |
Recurring | Level 3 | Mortgage-backed securities | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Recurring | Level 3 | Collateralized mortgage obligations | Government national mortgage association | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Recurring | Level 3 | Collateralized mortgage obligations | Federal home loan mortgage corporation | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Recurring | Level 3 | Collateralized mortgage obligations | Federal national mortgage association | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Recurring | Level 3 | Asset-backed securities | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 666 | 647 |
Recurring | Level 3 | Fixed maturities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 747 | |
Trading and Equity Securities | 0 | |
Recurring | Level 3 | Fixed maturities | Discontinued Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 8,245 | |
Trading and Equity Securities | 0 | |
Recurring | Level 3 | Fixed maturities | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 916 | 8,992 |
Recurring | Level 3 | Nonredeemable preferred stocks | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading and Equity Securities | 595 | 882 |
Recurring | Level 3 | Equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 882 | |
Recurring | Level 3 | Equity securities | Discontinued Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | |
Recurring | Level 3 | Equity securities | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 882 | |
Trading and Equity Securities | 882 | |
Recurring | Level 3 | Equity securities | Public utilities | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading and Equity Securities | 0 | 0 |
Recurring | Level 3 | Equity securities | Energy | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading and Equity Securities | 0 | 0 |
Recurring | Level 3 | Equity securities | Industrials | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading and Equity Securities | 0 | 0 |
Recurring | Level 3 | Equity securities | Consumer goods and services | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading and Equity Securities | 0 | 0 |
Recurring | Level 3 | Equity securities | Health care | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading and Equity Securities | 0 | 0 |
Recurring | Level 3 | Equity securities | Technology, media and telecommunications | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading and Equity Securities | 0 | 0 |
Recurring | Level 3 | Equity securities | Financial services | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading and Equity Securities | 0 | 0 |
Recurring | Level 3 | Redeemable preferred stocks | Continuing and Discontinuing Operations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading and Equity Securities | $ 0 | $ 0 |
FAIR VALUE OF FINANCIAL INSTR_6
FAIR VALUE OF FINANCIAL INSTRUMENTS (Level 3 Securities) (Details) - Recurring - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Continuing and Discontinuing Operations | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | $ 9,874 | $ 15,098 |
Unrealized gains (losses) | 348 | |
Purchases | 245 | |
Disposals | (5,817) | |
Ending Balance | 9,874 | |
Continuing and Discontinuing Operations | States, municipalities and political subdivisions | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | 0 | 168 |
Unrealized gains (losses) | (8) | |
Purchases | 0 | |
Disposals | (160) | |
Ending Balance | 0 | |
Continuing and Discontinuing Operations | Corporate bonds | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | 8,345 | 9,894 |
Unrealized gains (losses) | (129) | |
Purchases | 100 | |
Disposals | (1,520) | |
Ending Balance | 8,345 | |
Continuing and Discontinuing Operations | Asset-backed securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | 647 | 449 |
Unrealized gains (losses) | 198 | |
Purchases | 0 | |
Disposals | 0 | |
Ending Balance | 647 | |
Continuing and Discontinuing Operations | Equities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | 882 | 4,587 |
Unrealized gains (losses) | 287 | |
Purchases | 145 | |
Disposals | (4,137) | |
Ending Balance | 882 | |
Continuing Operations | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | 1,629 | |
Unrealized gains (losses) | (268) | |
Purchases | 150 | |
Ending Balance | 1,511 | 1,629 |
Continuing Operations | Corporate bonds | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | 100 | |
Unrealized gains (losses) | 0 | |
Purchases | 150 | |
Ending Balance | 250 | 100 |
Continuing Operations | Asset-backed securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | 647 | |
Unrealized gains (losses) | 19 | |
Purchases | 0 | |
Ending Balance | 666 | 647 |
Continuing Operations | Equities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | 882 | |
Unrealized gains (losses) | (287) | |
Purchases | 0 | |
Ending Balance | $ 595 | $ 882 |
FAIR VALUE OF FINANCIAL INSTR_7
FAIR VALUE OF FINANCIAL INSTRUMENTS (Commercial Mortgage Loans) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Commercial mortgage loans, gross | $ 25,828 | $ 0 |
Commercial mortgage loans, allowance | (46) | 0 |
Commercial mortgage loans, amortized cost | $ 25,782 | $ 0 |
Commercial mortgage loans, percent of total | 100.00% | 0.00% |
Multifamily | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Commercial mortgage loans, gross | $ 3,244 | $ 0 |
Commercial mortgage loans, percent of total | 12.60% | 0.00% |
Office | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Commercial mortgage loans, gross | $ 11,627 | $ 0 |
Commercial mortgage loans, percent of total | 45.00% | 0.00% |
Mixed use/Other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Commercial mortgage loans, gross | $ 10,957 | $ 0 |
Commercial mortgage loans, percent of total | 42.40% | 0.00% |
East North Central | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Commercial mortgage loans, gross | $ 3,244 | $ 0 |
Commercial mortgage loans, percent of total | 12.60% | 0.00% |
Southern Atlantic | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Commercial mortgage loans, gross | $ 6,652 | $ 0 |
Commercial mortgage loans, percent of total | 25.80% | 0.00% |
East South Central | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Commercial mortgage loans, gross | $ 4,975 | $ 0 |
Commercial mortgage loans, percent of total | 19.30% | 0.00% |
New England | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Commercial mortgage loans, gross | $ 6,588 | $ 0 |
Commercial mortgage loans, percent of total | 25.40% | 0.00% |
Middle Atlantic | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Commercial mortgage loans, gross | $ 4,369 | $ 0 |
Commercial mortgage loans, percent of total | 16.90% | 0.00% |
LTV Less Than 65 Percent | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Commercial mortgage loans, gross | $ 25,828 | $ 0 |
REINSURANCE (Narrative) (Detail
REINSURANCE (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Reinsurance [Line Items] | |||
Reinsurance recoverables | $ 61,337 | $ 63,194 | $ 30,000 |
Continuing Operations - Property and Casualty Insurance | |||
Reinsurance [Line Items] | |||
Reinsurance recoverables | $ 3,779 | $ 2,859 | |
Continuing Operations - Property and Casualty Insurance | Casualty Excess and Property Excess | |||
Reinsurance [Line Items] | |||
Reinsurance retention policy, reinsured risk, percentage | 6.78% | 7.02% | |
Minimum | |||
Reinsurance [Line Items] | |||
Retention amount | 52,000 | ||
Minimum | Continuing Operations - Property and Casualty Insurance | Casualty Excess and Property Excess | |||
Reinsurance [Line Items] | |||
Retention amount | $ 58,500 | $ 58,500 | |
Maximum | |||
Reinsurance [Line Items] | |||
Retention amount | $ 65,000 | ||
Maximum | Continuing Operations - Property and Casualty Insurance | Casualty Excess and Property Excess | |||
Reinsurance [Line Items] | |||
Reinsurance recoverables | 30,000 | 30,000 | |
Retention amount | $ 71,500 | $ 71,500 | |
Discontinued Operations | Discontinued Operations - Life Insurance | Top Five Reinsurers | |||
Reinsurance [Line Items] | |||
Percentage of insurance in force | 7.73% |
REINSURANCE (Ceded and Assumed
REINSURANCE (Ceded and Assumed Reinsurance) (Details) - Continuing Operations - Property and Casualty Insurance - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Reinsurance [Line Items] | |||
Ceded premiums written | $ 66,800 | $ 61,273 | $ 57,988 |
Ceded premiums earned | 63,487 | 61,305 | 57,996 |
Loss and loss settlement expenses ceded | 22,317 | 33,303 | 13,278 |
Assumed premiums written | 16,761 | 15,179 | 16,834 |
Assumed premiums earned | 16,957 | 15,059 | 17,037 |
Loss and loss settlement expenses assumed | $ (3,954) | $ 24,688 | $ 9,814 |
REINSURANCE (Reinsurance Progra
REINSURANCE (Reinsurance Programs) (Details) - Continuing Operations - Property and Casualty Insurance - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Casualty excess of loss | |||
Reinsurance [Line Items] | |||
Stated Retention | $ 2,500,000 | $ 2,500,000 | $ 2,500,000 |
Limits | $ 60,000,000 | $ 60,000,000 | $ 40,000,000 |
Percentage of Coverage | 100.00% | 100.00% | 100.00% |
Coverage | $ 57,500,000 | $ 57,500,000 | $ 37,500,000 |
Property excess of loss | |||
Reinsurance [Line Items] | |||
Stated Retention | 2,500,000 | 2,500,000 | 2,500,000 |
Limits | $ 25,000,000 | $ 25,000,000 | $ 25,000,000 |
Percentage of Coverage | 100.00% | 100.00% | 100.00% |
Coverage | $ 22,500,000 | $ 22,500,000 | $ 22,500,000 |
Surety excess of loss | |||
Reinsurance [Line Items] | |||
Stated Retention | 1,500,000 | 1,500,000 | 1,500,000 |
Limits | $ 45,000,000 | $ 45,000,000 | $ 36,000,000 |
Percentage of Coverage | 100.00% | 100.00% | 100.00% |
Coverage | $ 43,500,000 | $ 43,500,000 | $ 34,500,000 |
Property catastrophe, excess | |||
Reinsurance [Line Items] | |||
Stated Retention | 20,000,000 | 20,000,000 | 20,000,000 |
Limits | $ 250,000,000 | $ 250,000,000 | $ 250,000,000 |
Percentage of Coverage | 100.00% | 100.00% | 100.00% |
Coverage | $ 230,000,000 | $ 230,000,000 | $ 230,000,000 |
Boiler and machinery | |||
Reinsurance [Line Items] | |||
Limits | $ 50,000,000 | $ 50,000,000 | $ 50,000,000 |
Percentage of Coverage | 100.00% | 100.00% | 100.00% |
Coverage | $ 50,000,000 | $ 50,000,000 | $ 50,000,000 |
REINSURANCE (Discontinued Opera
REINSURANCE (Discontinued Operations - Life Insurance Business) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Reinsurance [Line Items] | |||
Ceded insurance in-force | $ 0 | $ 1,014,794 | $ 1,023,197 |
Discontinued Operations | Discontinued Operations - Life Insurance | |||
Reinsurance [Line Items] | |||
Ceded insurance in-force | 0 | 1,014,794 | 1,023,197 |
Ceded premiums earned | 716 | 2,722 | 2,768 |
Loss and loss settlement expenses ceded | $ 1,473 | $ 3,726 | $ 3,359 |
RESERVES FOR LOSSES AND LOSS _3
RESERVES FOR LOSSES AND LOSS SETTLEMENT EXPENSES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | |||
Gross liability for losses and loss settlement expenses at beginning of year | $ 1,224,183 | $ 1,123,896 | $ 1,003,895 |
Ceded losses and loss settlement expenses | (59,871) | (59,794) | (54,653) |
Net liability for losses and loss settlement expenses at beginning of year | 1,164,312 | 1,064,102 | 949,242 |
Losses and loss settlement expenses incurred for claims occurring during | |||
Current year | 785,778 | 779,966 | 683,662 |
Prior years | (54,167) | (54,253) | (31,229) |
Total incurred | 731,611 | 725,713 | 652,433 |
Losses and loss settlement expense payments for claims occurring during | |||
Current year | 306,032 | 311,972 | 277,053 |
Prior years | 334,502 | 313,531 | 260,520 |
Total paid | 640,534 | 625,503 | 537,573 |
Net liability for losses and loss settlement expenses at end of year | 1,255,389 | 1,164,312 | 1,064,102 |
Ceded loss and loss settlement expenses | 57,094 | 59,871 | 59,794 |
Gross liability for losses and loss settlement expenses at end of year | $ 1,312,483 | $ 1,224,183 | $ 1,123,896 |
RESERVES FOR LOSSES AND LOSS _4
RESERVES FOR LOSSES AND LOSS SETTLEMENT EXPENSES (Incurred Claims and Allocated Claim Adjustment Expenses) (Details) claim in Thousands, $ in Thousands | Dec. 31, 2018USD ($)claim | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2012USD ($) | Dec. 31, 2011USD ($) | Dec. 31, 2010USD ($) | Dec. 31, 2009USD ($) |
Commercial other liability | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Incurred losses and allocated loss settlement expenses, net of reinsurance | $ 1,089,361 | |||||||||
Commercial fire and allied | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Incurred losses and allocated loss settlement expenses, net of reinsurance | 1,181,614 | |||||||||
Commercial automobile | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Incurred losses and allocated loss settlement expenses, net of reinsurance | 1,318,681 | |||||||||
Workers' compensation | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Incurred losses and allocated loss settlement expenses, net of reinsurance | 505,557 | |||||||||
Personal | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Incurred losses and allocated loss settlement expenses, net of reinsurance | 442,013 | |||||||||
2009 | Commercial other liability | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Incurred losses and allocated loss settlement expenses, net of reinsurance | 85,576 | $ 86,543 | $ 86,757 | $ 85,761 | $ 83,660 | $ 84,286 | $ 65,831 | $ 73,545 | $ 85,991 | $ 88,298 |
Total of incurred but not reported liabilities plus expected development on reported claims | 9,249 | |||||||||
Cumulative development | $ (2,722) | |||||||||
Cumulative number of reported claims | claim | 6,333 | |||||||||
2009 | Commercial fire and allied | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Incurred losses and allocated loss settlement expenses, net of reinsurance | $ 88,648 | 89,027 | 88,891 | 87,932 | 87,845 | 87,751 | 105,614 | 105,031 | 106,085 | 113,754 |
Total of incurred but not reported liabilities plus expected development on reported claims | 80 | |||||||||
Cumulative development | $ (25,106) | |||||||||
Cumulative number of reported claims | claim | 18,053 | |||||||||
2009 | Commercial automobile | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Incurred losses and allocated loss settlement expenses, net of reinsurance | $ 63,506 | 63,509 | 63,567 | 63,560 | 63,605 | 64,516 | 64,121 | 68,569 | 69,328 | 80,021 |
Total of incurred but not reported liabilities plus expected development on reported claims | 0 | |||||||||
Cumulative development | $ (16,515) | |||||||||
Cumulative number of reported claims | claim | 15,019 | |||||||||
2009 | Workers' compensation | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Incurred losses and allocated loss settlement expenses, net of reinsurance | $ 34,783 | 35,012 | 35,026 | 36,014 | 36,158 | 36,823 | 36,837 | 36,294 | 39,009 | 43,560 |
Total of incurred but not reported liabilities plus expected development on reported claims | 193 | |||||||||
Cumulative development | $ (8,777) | |||||||||
Cumulative number of reported claims | claim | 4,265 | |||||||||
2009 | Personal | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Incurred losses and allocated loss settlement expenses, net of reinsurance | $ 31,879 | 31,867 | 32,070 | 32,085 | 32,029 | 32,134 | 32,026 | 31,945 | 33,519 | $ 34,597 |
Total of incurred but not reported liabilities plus expected development on reported claims | 2 | |||||||||
Cumulative development | $ (2,718) | |||||||||
Cumulative number of reported claims | claim | 13,502 | |||||||||
2010 | Commercial other liability | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Incurred losses and allocated loss settlement expenses, net of reinsurance | $ 76,956 | 78,498 | 78,291 | 77,948 | 78,564 | 82,865 | 65,299 | 69,533 | 88,987 | |
Total of incurred but not reported liabilities plus expected development on reported claims | 11,859 | |||||||||
Cumulative development | $ (12,031) | |||||||||
Cumulative number of reported claims | claim | 5,264 | |||||||||
2010 | Commercial fire and allied | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Incurred losses and allocated loss settlement expenses, net of reinsurance | $ 84,123 | 84,213 | 83,981 | 83,767 | 83,932 | 83,836 | 108,246 | 106,152 | 113,139 | |
Total of incurred but not reported liabilities plus expected development on reported claims | 65 | |||||||||
Cumulative development | $ (29,016) | |||||||||
Cumulative number of reported claims | claim | 16,690 | |||||||||
2010 | Commercial automobile | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Incurred losses and allocated loss settlement expenses, net of reinsurance | $ 67,893 | 67,910 | 68,086 | 67,296 | 67,563 | 67,015 | 65,860 | 68,068 | 75,781 | |
Total of incurred but not reported liabilities plus expected development on reported claims | 5 | |||||||||
Cumulative development | $ (7,888) | |||||||||
Cumulative number of reported claims | claim | 16,246 | |||||||||
2010 | Workers' compensation | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Incurred losses and allocated loss settlement expenses, net of reinsurance | $ 42,666 | 42,617 | 41,468 | 41,422 | 40,647 | 41,167 | 41,180 | 42,531 | 38,210 | |
Total of incurred but not reported liabilities plus expected development on reported claims | 346 | |||||||||
Cumulative development | $ 4,456 | |||||||||
Cumulative number of reported claims | claim | 3,986 | |||||||||
2010 | Personal | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Incurred losses and allocated loss settlement expenses, net of reinsurance | $ 33,204 | 33,213 | 33,432 | 33,413 | 33,403 | 33,865 | 33,928 | 34,347 | $ 36,686 | |
Total of incurred but not reported liabilities plus expected development on reported claims | 14 | |||||||||
Cumulative development | $ (3,482) | |||||||||
Cumulative number of reported claims | claim | 13,330 | |||||||||
2011 | Commercial other liability | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Incurred losses and allocated loss settlement expenses, net of reinsurance | $ 80,338 | 81,463 | 80,801 | 79,591 | 88,200 | 88,371 | 64,738 | 81,522 | ||
Total of incurred but not reported liabilities plus expected development on reported claims | 12,231 | |||||||||
Cumulative development | $ (1,184) | |||||||||
Cumulative number of reported claims | claim | 5,436 | |||||||||
2011 | Commercial fire and allied | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Incurred losses and allocated loss settlement expenses, net of reinsurance | $ 121,319 | 121,434 | 120,219 | 119,820 | 120,492 | 117,082 | 142,330 | 148,220 | ||
Total of incurred but not reported liabilities plus expected development on reported claims | 281 | |||||||||
Cumulative development | $ (26,901) | |||||||||
Cumulative number of reported claims | claim | 16,037 | |||||||||
2011 | Commercial automobile | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Incurred losses and allocated loss settlement expenses, net of reinsurance | $ 90,838 | 90,766 | 91,336 | 92,379 | 92,519 | 90,750 | 87,299 | 84,887 | ||
Total of incurred but not reported liabilities plus expected development on reported claims | 199 | |||||||||
Cumulative development | $ 5,951 | |||||||||
Cumulative number of reported claims | claim | 15,248 | |||||||||
2011 | Workers' compensation | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Incurred losses and allocated loss settlement expenses, net of reinsurance | $ 32,707 | 33,352 | 33,314 | 33,585 | 34,309 | 35,352 | 38,481 | 39,967 | ||
Total of incurred but not reported liabilities plus expected development on reported claims | 425 | |||||||||
Cumulative development | $ (7,260) | |||||||||
Cumulative number of reported claims | claim | 3,955 | |||||||||
2011 | Personal | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Incurred losses and allocated loss settlement expenses, net of reinsurance | $ 46,761 | 46,733 | 47,013 | 46,968 | 47,035 | 47,090 | 48,534 | $ 50,014 | ||
Total of incurred but not reported liabilities plus expected development on reported claims | 32 | |||||||||
Cumulative development | $ (3,253) | |||||||||
Cumulative number of reported claims | claim | 14,846 | |||||||||
2012 | Commercial other liability | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Incurred losses and allocated loss settlement expenses, net of reinsurance | $ 89,731 | 91,346 | 92,537 | 91,980 | 94,195 | 96,158 | 100,389 | |||
Total of incurred but not reported liabilities plus expected development on reported claims | 15,179 | |||||||||
Cumulative development | $ (10,658) | |||||||||
Cumulative number of reported claims | claim | 5,631 | |||||||||
2012 | Commercial fire and allied | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Incurred losses and allocated loss settlement expenses, net of reinsurance | $ 109,687 | 108,623 | 107,958 | 108,047 | 108,774 | 110,448 | 138,602 | |||
Total of incurred but not reported liabilities plus expected development on reported claims | 813 | |||||||||
Cumulative development | $ (28,915) | |||||||||
Cumulative number of reported claims | claim | 6,438 | |||||||||
2012 | Commercial automobile | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Incurred losses and allocated loss settlement expenses, net of reinsurance | $ 96,305 | 96,389 | 96,594 | 95,321 | 94,755 | 90,848 | 100,039 | |||
Total of incurred but not reported liabilities plus expected development on reported claims | 243 | |||||||||
Cumulative development | $ (3,734) | |||||||||
Cumulative number of reported claims | claim | 14,364 | |||||||||
2012 | Workers' compensation | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Incurred losses and allocated loss settlement expenses, net of reinsurance | $ 39,182 | 39,015 | 38,553 | 38,423 | 42,158 | 46,279 | 48,848 | |||
Total of incurred but not reported liabilities plus expected development on reported claims | 503 | |||||||||
Cumulative development | $ (9,666) | |||||||||
Cumulative number of reported claims | claim | 3,982 | |||||||||
2012 | Personal | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Incurred losses and allocated loss settlement expenses, net of reinsurance | $ 44,165 | 44,352 | 44,715 | 46,150 | 46,403 | 46,199 | $ 47,924 | |||
Total of incurred but not reported liabilities plus expected development on reported claims | 7 | |||||||||
Cumulative development | $ (3,759) | |||||||||
Cumulative number of reported claims | claim | 10,776 | |||||||||
2013 | Commercial other liability | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Incurred losses and allocated loss settlement expenses, net of reinsurance | $ 88,816 | 85,399 | 86,119 | 90,502 | 91,460 | 104,982 | ||||
Total of incurred but not reported liabilities plus expected development on reported claims | 7,922 | |||||||||
Cumulative development | $ (16,166) | |||||||||
Cumulative number of reported claims | claim | 6,147 | |||||||||
2013 | Commercial fire and allied | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Incurred losses and allocated loss settlement expenses, net of reinsurance | $ 93,858 | 93,826 | 92,212 | 91,498 | 88,550 | 91,521 | ||||
Total of incurred but not reported liabilities plus expected development on reported claims | 515 | |||||||||
Cumulative development | $ 2,337 | |||||||||
Cumulative number of reported claims | claim | 6,626 | |||||||||
2013 | Commercial automobile | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Incurred losses and allocated loss settlement expenses, net of reinsurance | $ 105,248 | 104,980 | 103,726 | 102,943 | 98,037 | 104,356 | ||||
Total of incurred but not reported liabilities plus expected development on reported claims | 811 | |||||||||
Cumulative development | $ 892 | |||||||||
Cumulative number of reported claims | claim | 15,520 | |||||||||
2013 | Workers' compensation | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Incurred losses and allocated loss settlement expenses, net of reinsurance | $ 51,753 | 52,761 | 54,584 | 56,369 | 62,579 | 64,048 | ||||
Total of incurred but not reported liabilities plus expected development on reported claims | 781 | |||||||||
Cumulative development | $ (12,295) | |||||||||
Cumulative number of reported claims | claim | 4,236 | |||||||||
2013 | Personal | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Incurred losses and allocated loss settlement expenses, net of reinsurance | $ 36,661 | 36,729 | 37,086 | 37,262 | 38,525 | $ 39,232 | ||||
Total of incurred but not reported liabilities plus expected development on reported claims | 36 | |||||||||
Cumulative development | $ (2,571) | |||||||||
Cumulative number of reported claims | claim | 9,240 | |||||||||
2014 | Commercial other liability | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Incurred losses and allocated loss settlement expenses, net of reinsurance | $ 102,487 | 97,809 | 106,486 | 117,958 | 118,928 | |||||
Total of incurred but not reported liabilities plus expected development on reported claims | 10,092 | |||||||||
Cumulative development | $ (16,441) | |||||||||
Cumulative number of reported claims | claim | 6,289 | |||||||||
2014 | Commercial fire and allied | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Incurred losses and allocated loss settlement expenses, net of reinsurance | $ 128,503 | 128,185 | 128,762 | 131,198 | 126,216 | |||||
Total of incurred but not reported liabilities plus expected development on reported claims | 1,012 | |||||||||
Cumulative development | $ 2,287 | |||||||||
Cumulative number of reported claims | claim | 7,883 | |||||||||
2014 | Commercial automobile | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Incurred losses and allocated loss settlement expenses, net of reinsurance | $ 120,385 | 118,869 | 113,720 | 106,076 | 107,723 | |||||
Total of incurred but not reported liabilities plus expected development on reported claims | 1,706 | |||||||||
Cumulative development | $ 12,662 | |||||||||
Cumulative number of reported claims | claim | 17,277 | |||||||||
2014 | Workers' compensation | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Incurred losses and allocated loss settlement expenses, net of reinsurance | $ 54,636 | 56,630 | 58,284 | 60,729 | 64,051 | |||||
Total of incurred but not reported liabilities plus expected development on reported claims | 1,106 | |||||||||
Cumulative development | $ (9,415) | |||||||||
Cumulative number of reported claims | claim | 4,668 | |||||||||
2014 | Personal | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Incurred losses and allocated loss settlement expenses, net of reinsurance | $ 52,615 | 52,782 | 52,944 | 52,661 | $ 53,910 | |||||
Total of incurred but not reported liabilities plus expected development on reported claims | 76 | |||||||||
Cumulative development | $ (1,295) | |||||||||
Cumulative number of reported claims | claim | 10,929 | |||||||||
2015 | Commercial other liability | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Incurred losses and allocated loss settlement expenses, net of reinsurance | $ 127,091 | 120,005 | 125,307 | 137,386 | ||||||
Total of incurred but not reported liabilities plus expected development on reported claims | 19,976 | |||||||||
Cumulative development | $ (10,295) | |||||||||
Cumulative number of reported claims | claim | 7,385 | |||||||||
2015 | Commercial fire and allied | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Incurred losses and allocated loss settlement expenses, net of reinsurance | $ 108,235 | 110,633 | 108,293 | 103,177 | ||||||
Total of incurred but not reported liabilities plus expected development on reported claims | 1,633 | |||||||||
Cumulative development | $ 5,058 | |||||||||
Cumulative number of reported claims | claim | 7,523 | |||||||||
2015 | Commercial automobile | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Incurred losses and allocated loss settlement expenses, net of reinsurance | $ 138,987 | 132,206 | 129,816 | 125,506 | ||||||
Total of incurred but not reported liabilities plus expected development on reported claims | 3,837 | |||||||||
Cumulative development | $ 13,481 | |||||||||
Cumulative number of reported claims | claim | 19,961 | |||||||||
2015 | Workers' compensation | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Incurred losses and allocated loss settlement expenses, net of reinsurance | $ 46,682 | 51,003 | 55,578 | 53,788 | ||||||
Total of incurred but not reported liabilities plus expected development on reported claims | 935 | |||||||||
Cumulative development | $ (7,106) | |||||||||
Cumulative number of reported claims | claim | 5,515 | |||||||||
2015 | Personal | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Incurred losses and allocated loss settlement expenses, net of reinsurance | $ 40,368 | 40,336 | 41,088 | $ 42,848 | ||||||
Total of incurred but not reported liabilities plus expected development on reported claims | 132 | |||||||||
Cumulative development | $ (2,480) | |||||||||
Cumulative number of reported claims | claim | 9,522 | |||||||||
2016 | Commercial other liability | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Incurred losses and allocated loss settlement expenses, net of reinsurance | $ 136,275 | 130,041 | 139,144 | |||||||
Total of incurred but not reported liabilities plus expected development on reported claims | 26,097 | |||||||||
Cumulative development | $ (2,869) | |||||||||
Cumulative number of reported claims | claim | 8,217 | |||||||||
2016 | Commercial fire and allied | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Incurred losses and allocated loss settlement expenses, net of reinsurance | $ 143,721 | 144,208 | 147,473 | |||||||
Total of incurred but not reported liabilities plus expected development on reported claims | 2,320 | |||||||||
Cumulative development | $ (3,752) | |||||||||
Cumulative number of reported claims | claim | 9,703 | |||||||||
2016 | Commercial automobile | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Incurred losses and allocated loss settlement expenses, net of reinsurance | $ 174,337 | 175,357 | 174,018 | |||||||
Total of incurred but not reported liabilities plus expected development on reported claims | 10,723 | |||||||||
Cumulative development | $ 319 | |||||||||
Cumulative number of reported claims | claim | 27,040 | |||||||||
2016 | Workers' compensation | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Incurred losses and allocated loss settlement expenses, net of reinsurance | $ 61,648 | 66,575 | 70,419 | |||||||
Total of incurred but not reported liabilities plus expected development on reported claims | 2,042 | |||||||||
Cumulative development | $ (8,771) | |||||||||
Cumulative number of reported claims | claim | 7,376 | |||||||||
2016 | Personal | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Incurred losses and allocated loss settlement expenses, net of reinsurance | $ 45,379 | 45,840 | $ 48,072 | |||||||
Total of incurred but not reported liabilities plus expected development on reported claims | 351 | |||||||||
Cumulative development | $ (2,693) | |||||||||
Cumulative number of reported claims | claim | 11,840 | |||||||||
2017 | Commercial other liability | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Incurred losses and allocated loss settlement expenses, net of reinsurance | $ 139,032 | 139,602 | ||||||||
Total of incurred but not reported liabilities plus expected development on reported claims | 38,919 | |||||||||
Cumulative development | $ (570) | |||||||||
Cumulative number of reported claims | claim | 7,837 | |||||||||
2017 | Commercial fire and allied | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Incurred losses and allocated loss settlement expenses, net of reinsurance | $ 160,240 | 155,139 | ||||||||
Total of incurred but not reported liabilities plus expected development on reported claims | 4,553 | |||||||||
Cumulative development | $ 5,101 | |||||||||
Cumulative number of reported claims | claim | 13,021 | |||||||||
2017 | Commercial automobile | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Incurred losses and allocated loss settlement expenses, net of reinsurance | $ 224,553 | 227,919 | ||||||||
Total of incurred but not reported liabilities plus expected development on reported claims | 28,591 | |||||||||
Cumulative development | $ (3,366) | |||||||||
Cumulative number of reported claims | claim | 32,281 | |||||||||
2017 | Workers' compensation | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Incurred losses and allocated loss settlement expenses, net of reinsurance | $ 69,528 | 76,184 | ||||||||
Total of incurred but not reported liabilities plus expected development on reported claims | 3,744 | |||||||||
Cumulative development | $ (6,656) | |||||||||
Cumulative number of reported claims | claim | 7,283 | |||||||||
2017 | Personal | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Incurred losses and allocated loss settlement expenses, net of reinsurance | $ 59,342 | $ 60,330 | ||||||||
Total of incurred but not reported liabilities plus expected development on reported claims | 733 | |||||||||
Cumulative development | $ (988) | |||||||||
Cumulative number of reported claims | claim | 14,454 | |||||||||
2018 | Commercial other liability | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Incurred losses and allocated loss settlement expenses, net of reinsurance | $ 163,059 | |||||||||
Total of incurred but not reported liabilities plus expected development on reported claims | $ 78,705 | |||||||||
Cumulative number of reported claims | claim | 6,088 | |||||||||
2018 | Commercial fire and allied | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Incurred losses and allocated loss settlement expenses, net of reinsurance | $ 143,280 | |||||||||
Total of incurred but not reported liabilities plus expected development on reported claims | $ 13,286 | |||||||||
Cumulative number of reported claims | claim | 9,235 | |||||||||
2018 | Commercial automobile | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Incurred losses and allocated loss settlement expenses, net of reinsurance | $ 236,629 | |||||||||
Total of incurred but not reported liabilities plus expected development on reported claims | $ 65,079 | |||||||||
Cumulative number of reported claims | claim | 30,521 | |||||||||
2018 | Workers' compensation | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Incurred losses and allocated loss settlement expenses, net of reinsurance | $ 71,972 | |||||||||
Total of incurred but not reported liabilities plus expected development on reported claims | $ 5,885 | |||||||||
Cumulative number of reported claims | claim | 5,478 | |||||||||
2018 | Personal | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Incurred losses and allocated loss settlement expenses, net of reinsurance | $ 51,639 | |||||||||
Total of incurred but not reported liabilities plus expected development on reported claims | $ 3,027 | |||||||||
Cumulative number of reported claims | claim | 12,246 |
RESERVES FOR LOSSES AND LOSS _5
RESERVES FOR LOSSES AND LOSS SETTLEMENT EXPENSES (Cumulative Paid Claims and Allocated Claim Adjustment Expenses) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2009 |
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Liabilities for unpaid losses and loss settlement expenses, net of reinsurance | $ 1,166,388 | |||||||||
Commercial other liability | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Cumulative paid losses and allocated loss settlement expenses, net of reinsurance | 624,701 | |||||||||
All outstanding liabilities for unpaid losses and loss settlement expenses before 2009, net of reinsurance | 31,672 | |||||||||
Liabilities for unpaid losses and loss settlement expenses, net of reinsurance | 496,332 | |||||||||
Commercial fire and allied | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Cumulative paid losses and allocated loss settlement expenses, net of reinsurance | 1,078,561 | |||||||||
All outstanding liabilities for unpaid losses and loss settlement expenses before 2009, net of reinsurance | 522 | |||||||||
Liabilities for unpaid losses and loss settlement expenses, net of reinsurance | 103,575 | |||||||||
Commercial automobile | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Cumulative paid losses and allocated loss settlement expenses, net of reinsurance | 980,073 | |||||||||
All outstanding liabilities for unpaid losses and loss settlement expenses before 2009, net of reinsurance | 56 | |||||||||
Liabilities for unpaid losses and loss settlement expenses, net of reinsurance | 338,664 | |||||||||
Workers' compensation | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Cumulative paid losses and allocated loss settlement expenses, net of reinsurance | 357,235 | |||||||||
All outstanding liabilities for unpaid losses and loss settlement expenses before 2009, net of reinsurance | 20,232 | |||||||||
Liabilities for unpaid losses and loss settlement expenses, net of reinsurance | 168,554 | |||||||||
Personal | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Cumulative paid losses and allocated loss settlement expenses, net of reinsurance | 416,761 | |||||||||
All outstanding liabilities for unpaid losses and loss settlement expenses before 2009, net of reinsurance | 1,418 | |||||||||
Liabilities for unpaid losses and loss settlement expenses, net of reinsurance | 26,668 | |||||||||
2009 | Commercial other liability | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Cumulative paid losses and allocated loss settlement expenses, net of reinsurance | 72,673 | $ 70,814 | $ 67,733 | $ 63,149 | $ 56,789 | $ 50,098 | $ 41,696 | $ 32,073 | $ 21,151 | $ 8,375 |
2009 | Commercial fire and allied | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Cumulative paid losses and allocated loss settlement expenses, net of reinsurance | 88,334 | 88,159 | 88,037 | 87,721 | 87,544 | 86,930 | 82,809 | 77,732 | 72,181 | 53,219 |
2009 | Commercial automobile | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Cumulative paid losses and allocated loss settlement expenses, net of reinsurance | 63,506 | 63,508 | 63,503 | 63,495 | 62,732 | 61,398 | 58,087 | 53,451 | 44,867 | 27,674 |
2009 | Workers' compensation | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Cumulative paid losses and allocated loss settlement expenses, net of reinsurance | 33,313 | 33,117 | 32,911 | 31,886 | 31,003 | 29,898 | 27,747 | 24,189 | 20,292 | 10,478 |
2009 | Personal | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Cumulative paid losses and allocated loss settlement expenses, net of reinsurance | 31,849 | 31,837 | 31,804 | 31,718 | 31,644 | 31,564 | 30,829 | 29,801 | 27,926 | $ 22,086 |
2010 | Commercial other liability | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Cumulative paid losses and allocated loss settlement expenses, net of reinsurance | 63,300 | 62,070 | 60,116 | 56,761 | 51,336 | 35,043 | 24,577 | 15,230 | 7,103 | |
2010 | Commercial fire and allied | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Cumulative paid losses and allocated loss settlement expenses, net of reinsurance | 83,942 | 83,915 | 83,374 | 83,000 | 82,037 | 80,352 | 78,284 | 72,271 | 52,660 | |
2010 | Commercial automobile | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Cumulative paid losses and allocated loss settlement expenses, net of reinsurance | 67,853 | 67,852 | 67,622 | 65,169 | 62,231 | 57,947 | 52,953 | 41,141 | 29,329 | |
2010 | Workers' compensation | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Cumulative paid losses and allocated loss settlement expenses, net of reinsurance | 39,208 | 38,973 | 35,052 | 34,143 | 33,119 | 31,887 | 28,765 | 22,606 | 11,821 | |
2010 | Personal | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Cumulative paid losses and allocated loss settlement expenses, net of reinsurance | 33,154 | 33,158 | 33,165 | 32,997 | 32,771 | 32,076 | 31,340 | 29,867 | $ 24,499 | |
2011 | Commercial other liability | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Cumulative paid losses and allocated loss settlement expenses, net of reinsurance | 64,541 | 62,165 | 56,150 | 50,146 | 40,595 | 26,260 | 13,670 | 6,236 | ||
2011 | Commercial fire and allied | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Cumulative paid losses and allocated loss settlement expenses, net of reinsurance | 120,731 | 120,178 | 118,183 | 116,614 | 112,497 | 109,429 | 104,800 | 85,585 | ||
2011 | Commercial automobile | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Cumulative paid losses and allocated loss settlement expenses, net of reinsurance | 89,459 | 88,609 | 87,475 | 85,348 | 79,383 | 65,021 | 50,931 | 34,332 | ||
2011 | Workers' compensation | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Cumulative paid losses and allocated loss settlement expenses, net of reinsurance | 29,700 | 29,453 | 29,022 | 28,247 | 27,497 | 26,033 | 21,678 | 10,322 | ||
2011 | Personal | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Cumulative paid losses and allocated loss settlement expenses, net of reinsurance | 46,650 | 46,575 | 46,573 | 46,487 | 45,949 | 45,306 | 43,801 | $ 36,489 | ||
2012 | Commercial other liability | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Cumulative paid losses and allocated loss settlement expenses, net of reinsurance | 71,773 | 69,800 | 64,574 | 55,316 | 39,948 | 24,620 | 6,875 | |||
2012 | Commercial fire and allied | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Cumulative paid losses and allocated loss settlement expenses, net of reinsurance | 106,740 | 106,521 | 105,250 | 103,197 | 100,078 | 94,380 | 71,008 | |||
2012 | Commercial automobile | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Cumulative paid losses and allocated loss settlement expenses, net of reinsurance | 94,747 | 93,179 | 90,292 | 82,944 | 71,469 | 57,201 | 39,247 | |||
2012 | Workers' compensation | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Cumulative paid losses and allocated loss settlement expenses, net of reinsurance | 35,388 | 34,330 | 33,063 | 30,933 | 28,397 | 23,023 | 11,802 | |||
2012 | Personal | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Cumulative paid losses and allocated loss settlement expenses, net of reinsurance | 44,158 | 44,139 | 43,569 | 44,448 | 43,375 | 41,979 | $ 30,415 | |||
2013 | Commercial other liability | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Cumulative paid losses and allocated loss settlement expenses, net of reinsurance | 72,115 | 65,773 | 54,559 | 39,953 | 25,228 | 9,835 | ||||
2013 | Commercial fire and allied | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Cumulative paid losses and allocated loss settlement expenses, net of reinsurance | 91,493 | 89,200 | 86,115 | 82,853 | 78,226 | 59,331 | ||||
2013 | Commercial automobile | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Cumulative paid losses and allocated loss settlement expenses, net of reinsurance | 100,058 | 96,375 | 90,780 | 79,663 | 67,630 | 43,592 | ||||
2013 | Workers' compensation | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Cumulative paid losses and allocated loss settlement expenses, net of reinsurance | 47,071 | 45,078 | 42,941 | 38,023 | 30,209 | 14,136 | ||||
2013 | Personal | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Cumulative paid losses and allocated loss settlement expenses, net of reinsurance | 36,323 | 36,155 | 35,306 | 34,297 | 32,788 | $ 25,505 | ||||
2014 | Commercial other liability | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Cumulative paid losses and allocated loss settlement expenses, net of reinsurance | 83,109 | 70,363 | 50,211 | 29,679 | 10,207 | |||||
2014 | Commercial fire and allied | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Cumulative paid losses and allocated loss settlement expenses, net of reinsurance | 123,697 | 122,370 | 116,750 | 113,663 | 84,456 | |||||
2014 | Commercial automobile | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Cumulative paid losses and allocated loss settlement expenses, net of reinsurance | 109,682 | 99,922 | 87,590 | 68,033 | 45,704 | |||||
2014 | Workers' compensation | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Cumulative paid losses and allocated loss settlement expenses, net of reinsurance | 45,193 | 42,964 | 38,441 | 30,289 | 13,965 | |||||
2014 | Personal | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Cumulative paid losses and allocated loss settlement expenses, net of reinsurance | 52,018 | 51,837 | 49,710 | 47,912 | $ 37,055 | |||||
2015 | Commercial other liability | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Cumulative paid losses and allocated loss settlement expenses, net of reinsurance | 74,292 | 53,901 | 27,182 | 11,185 | ||||||
2015 | Commercial fire and allied | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Cumulative paid losses and allocated loss settlement expenses, net of reinsurance | 101,367 | 95,515 | 90,454 | 67,217 | ||||||
2015 | Commercial automobile | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Cumulative paid losses and allocated loss settlement expenses, net of reinsurance | 118,395 | 99,201 | 78,225 | 50,782 | ||||||
2015 | Workers' compensation | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Cumulative paid losses and allocated loss settlement expenses, net of reinsurance | 38,424 | 35,229 | 27,304 | 12,063 | ||||||
2015 | Personal | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Cumulative paid losses and allocated loss settlement expenses, net of reinsurance | 39,428 | 39,027 | 37,431 | $ 29,551 | ||||||
2016 | Commercial other liability | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Cumulative paid losses and allocated loss settlement expenses, net of reinsurance | 63,526 | 38,184 | 13,782 | |||||||
2016 | Commercial fire and allied | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Cumulative paid losses and allocated loss settlement expenses, net of reinsurance | 132,429 | 125,962 | 92,895 | |||||||
2016 | Commercial automobile | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Cumulative paid losses and allocated loss settlement expenses, net of reinsurance | 128,157 | 103,528 | 66,013 | |||||||
2016 | Workers' compensation | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Cumulative paid losses and allocated loss settlement expenses, net of reinsurance | 40,680 | 32,345 | 14,413 | |||||||
2016 | Personal | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Cumulative paid losses and allocated loss settlement expenses, net of reinsurance | 42,660 | 40,910 | $ 32,999 | |||||||
2017 | Commercial other liability | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Cumulative paid losses and allocated loss settlement expenses, net of reinsurance | 43,172 | 17,716 | ||||||||
2017 | Commercial fire and allied | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Cumulative paid losses and allocated loss settlement expenses, net of reinsurance | 137,058 | 99,484 | ||||||||
2017 | Commercial automobile | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Cumulative paid losses and allocated loss settlement expenses, net of reinsurance | 126,644 | 81,311 | ||||||||
2017 | Workers' compensation | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Cumulative paid losses and allocated loss settlement expenses, net of reinsurance | 31,309 | 14,647 | ||||||||
2017 | Personal | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Cumulative paid losses and allocated loss settlement expenses, net of reinsurance | 53,111 | $ 42,135 | ||||||||
2018 | Commercial other liability | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Cumulative paid losses and allocated loss settlement expenses, net of reinsurance | 16,200 | |||||||||
2018 | Commercial fire and allied | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Cumulative paid losses and allocated loss settlement expenses, net of reinsurance | 92,770 | |||||||||
2018 | Commercial automobile | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Cumulative paid losses and allocated loss settlement expenses, net of reinsurance | 81,572 | |||||||||
2018 | Workers' compensation | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Cumulative paid losses and allocated loss settlement expenses, net of reinsurance | 16,949 | |||||||||
2018 | Personal | ||||||||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||||||||
Cumulative paid losses and allocated loss settlement expenses, net of reinsurance | $ 37,410 |
RESERVES FOR LOSSES AND LOSS _6
RESERVES FOR LOSSES AND LOSS SETTLEMENT EXPENSES (Reconciliation of the Disclosure Claims Development to the Liability for Claims and Claim Adjustment Expenses) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Net outstanding liabilities for unpaid losses and allocated loss settlement expenses | $ 1,166,388 | |||
Net outstanding liabilities for unpaid unallocated loss settlement expenses | 86,753 | |||
Fair value adjustment (purchase accounting adjustment for Mercer acquisition) | 2,248 | |||
Liabilities for unpaid losses and loss settlement expenses, net of reinsurance | 1,255,389 | |||
Reinsurance recoverable on unpaid losses and allocated loss settlement expenses | 59,243 | |||
Reinsurance fair value amortization (purchase accounting adjustment for Mercer acquisition) | (2,149) | |||
Total reinsurance recoverable on unpaid losses and loss settlement expenses | 57,094 | |||
Total gross liability for unpaid losses and loss settlement expenses | 1,312,483 | $ 1,224,183 | $ 1,123,896 | $ 1,003,895 |
Commercial other liability | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Net outstanding liabilities for unpaid losses and allocated loss settlement expenses | 496,332 | |||
Reinsurance recoverable on unpaid losses and allocated loss settlement expenses | 22,556 | |||
Commercial fire and allied | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Net outstanding liabilities for unpaid losses and allocated loss settlement expenses | 103,575 | |||
Reinsurance recoverable on unpaid losses and allocated loss settlement expenses | 2,723 | |||
Commercial automobile | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Net outstanding liabilities for unpaid losses and allocated loss settlement expenses | 338,664 | |||
Reinsurance recoverable on unpaid losses and allocated loss settlement expenses | 3,166 | |||
Commercial workers' compensation | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Net outstanding liabilities for unpaid losses and allocated loss settlement expenses | 168,554 | |||
Reinsurance recoverable on unpaid losses and allocated loss settlement expenses | 27,465 | |||
Personal | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Net outstanding liabilities for unpaid losses and allocated loss settlement expenses | 26,668 | |||
Reinsurance recoverable on unpaid losses and allocated loss settlement expenses | 4 | |||
All other lines | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Net outstanding liabilities for unpaid losses and allocated loss settlement expenses | 32,595 | |||
Reinsurance recoverable on unpaid losses and allocated loss settlement expenses | $ 3,329 |
RESERVES FOR LOSSES AND LOSS _7
RESERVES FOR LOSSES AND LOSS SETTLEMENT EXPENSES (Historical Claims Duration) (Details) | Dec. 31, 2018 |
Commercial other liability | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Year 1 | 9.70% |
Year 2 | 15.50% |
Year 3 | 16.70% |
Year 4 | 16.00% |
Year 5 | 13.00% |
Year 6 | 7.10% |
Year 7 | 5.40% |
Year 8 | 3.60% |
Year 9 | 2.60% |
Year 10 | 2.20% |
Commercial fire and allied | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Year 1 | 64.00% |
Year 2 | 21.40% |
Year 3 | 4.90% |
Year 4 | 3.80% |
Year 5 | 2.70% |
Year 6 | 1.30% |
Year 7 | 0.60% |
Year 8 | 0.50% |
Year 9 | 0.10% |
Year 10 | 0.20% |
Commercial automobile | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Year 1 | 39.00% |
Year 2 | 20.50% |
Year 3 | 14.80% |
Year 4 | 11.00% |
Year 5 | 6.50% |
Year 6 | 3.10% |
Year 7 | 1.90% |
Year 8 | 0.40% |
Year 9 | 0.00% |
Year 10 | 0.00% |
Commercial workers' compensation | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Year 1 | 26.60% |
Year 2 | 29.30% |
Year 3 | 14.10% |
Year 4 | 7.60% |
Year 5 | 4.20% |
Year 6 | 3.00% |
Year 7 | 2.20% |
Year 8 | 4.30% |
Year 9 | 0.60% |
Year 10 | 0.60% |
Personal | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Year 1 | 71.90% |
Year 2 | 19.10% |
Year 3 | 4.00% |
Year 4 | 2.40% |
Year 5 | 1.00% |
Year 6 | 0.60% |
Year 7 | 0.20% |
Year 8 | 0.10% |
Year 9 | 0.00% |
Year 10 | 0.00% |
STATUTORY REPORTING, CAPITAL _3
STATUTORY REPORTING, CAPITAL REQUIREMENTS AND DIVIDENDS AND RETAINED EARNINGS RESTRICTIONS (Statutory Capital and Surplus) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Property and casualty business | |||
Statutory Accounting Practices [Line Items] | |||
Statutory Capital and Surplus | $ 774,257 | $ 757,443 | $ 770,908 |
Statutory Net Income (Loss) | 219,065 | 19,687 | 39,087 |
Life, accident and health business(1) | |||
Statutory Accounting Practices [Line Items] | |||
Statutory Capital and Surplus | 0 | 144,533 | 139,806 |
Statutory Net Income (Loss) | $ 3,548 | $ 5,485 | $ (3,177) |
STATUTORY REPORTING, CAPITAL _4
STATUTORY REPORTING, CAPITAL REQUIREMENTS AND DIVIDENDS AND RETAINED EARNINGS RESTRICTIONS (Narrative) (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Feb. 02, 2016 | |
Statutory Accounting Practices [Line Items] | ||||
Maximum borrowing capacity | $ 100,000,000 | |||
Payment of cash dividends | 105,408,000 | $ 27,337,000 | $ 24,591,000 | |
Subsidiaries | ||||
Statutory Accounting Practices [Line Items] | ||||
Intercompany dividend payments that are eliminated in Consolidated Financial Statements | 8,500,000 | 13,300,000 | 26,000,000 | |
United Fire & Casualty Company | ||||
Statutory Accounting Practices [Line Items] | ||||
Intercompany dividend payments that are eliminated in Consolidated Financial Statements | 105,000,000 | $ 40,000,000 | $ 24,000,000 | |
Revolving Credit Facility | ||||
Statutory Accounting Practices [Line Items] | ||||
Maximum borrowing capacity | 50,000,000 | $ 50,000,000 | ||
State of Iowa Insurance Department | ||||
Statutory Accounting Practices [Line Items] | ||||
Statutory amount available for dividend payments | $ 106,200,000 |
FEDERAL INCOME TAX (Narrative)
FEDERAL INCOME TAX (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Valuation Allowance [Line Items] | ||
Valuation allowance | $ 0 | $ 329 |
Realization of NOLs | 3,129 | |
Alternative minimum tax credit carryforward | 0 | 6,011 |
Valuation Allowance, Operating Loss Carryforwards | ||
Valuation Allowance [Line Items] | ||
Reduction in valuation allowance | $ 657 | $ 547 |
FEDERAL INCOME TAX (Federal Inc
FEDERAL INCOME TAX (Federal Income Tax) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Reconciliation Of Consolidated Federal Income Tax Expense (Benefit) [Line Items] | |||
Consolidated federal income tax expense (benefit) | $ (11,405) | $ (29,220) | $ 8,379 |
Continuing and Discontinuing Operations | |||
Reconciliation Of Consolidated Federal Income Tax Expense (Benefit) [Line Items] | |||
Current | 18,493 | 1,989 | 3,239 |
Deferred | (21,791) | (26,719) | 5,524 |
Consolidated federal income tax expense (benefit) | $ (3,298) | $ (24,730) | $ 8,763 |
FEDERAL INCOME TAX (Reconciliat
FEDERAL INCOME TAX (Reconciliation) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Reconciliation Of Consolidated Federal Income Tax Expense (Benefit) [Line Items] | |||
Consolidated federal income tax expense (benefit) | $ (11,405) | $ (29,220) | $ 8,379 |
Consolidated federal income tax expense (benefit), gain on sale of discontinued operations | 7,544 | 0 | 0 |
Consolidated federal income tax expense (benefit), discontinued operations | 563 | 4,490 | 384 |
Continuing and Discontinuing Operations | |||
Reconciliation Of Consolidated Federal Income Tax Expense (Benefit) [Line Items] | |||
Computed expected income tax expense | 5,114 | 9,202 | 20,533 |
Impact of enactment of Tax Act | 0 | (21,884) | 0 |
Tax-exempt municipal bond interest income | (4,235) | (8,875) | (8,330) |
Nontaxable dividend income | (591) | (1,540) | (1,317) |
Valuation allowance reduction | (329) | (547) | (547) |
Other, net | (3,257) | (1,086) | (1,576) |
Consolidated federal income tax expense (benefit) | $ (3,298) | $ (24,730) | $ 8,763 |
FEDERAL INCOME TAX (Net Deferre
FEDERAL INCOME TAX (Net Deferred Tax Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred tax liabilities | ||
Deferred policy acquisition costs | $ 19,487 | $ 30,404 |
Investments in partnerships | 2,510 | 3,653 |
Prepaid pension cost | 4,158 | 3,416 |
Net bond discount accretion | 296 | 666 |
Depreciation | 1,063 | 593 |
Revaluation of investment basis | 419 | 545 |
Identifiable intangible assets | 1,689 | 1,838 |
Other | 1,639 | 1,934 |
Gross deferred tax liability | 67,213 | 101,487 |
Deferred tax assets | ||
Financial statement reserves in excess of income tax reserves | 19,800 | 17,036 |
Unearned premium adjustment | 20,406 | 19,389 |
Net operating loss carryforwards | 0 | 329 |
Underfunded benefit plan obligation | 5,622 | 12,375 |
Post-retirement benefits other than pensions | 12,035 | 11,942 |
Other-than-temporary impairment of investments | 2,094 | 2,313 |
Contingent ceding commission accrual | 14 | 317 |
Alternative minimum tax credit carryforward | 0 | 6,011 |
Compensation expense related to stock options | 3,506 | 3,289 |
Other | 4,648 | 4,145 |
Gross deferred tax asset | 68,125 | 77,146 |
Valuation allowance | 0 | (329) |
Deferred tax asset | 68,125 | 76,817 |
Net deferred tax asset | (912) | |
Net deferred tax liability (asset) | 24,670 | |
Equity securities | ||
Deferred tax liabilities | ||
Net unrealized appreciation on investment securities | 38,430 | 50,839 |
All other securities | ||
Deferred tax liabilities | ||
Net unrealized appreciation on investment securities | $ (2,478) | $ 7,599 |
EMPLOYEE BENEFITS (Narrative) (
EMPLOYEE BENEFITS (Narrative) (Details) | Jan. 01, 2017USD ($) | Dec. 31, 2018USD ($)programinvestment_manager |
Defined Benefit Plan Disclosure [Line Items] | ||
Number of programs offered under health and dental benefit plan | program | 2 | |
Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Eligibility, minimum required service period | 1 year | |
Eligibility, minimum age | 21 years | |
Estimated employer contribution in next fiscal year | $ 4,000,000 | |
Retirement plan, employee deductible | $ 500 | |
Percentage of retirement plan owed by employees 65 or older | 50.00% | |
Percentage of retirement plan owed by employees less 65 | 100.00% | |
Number of external investment managers | investment_manager | 6 |
EMPLOYEE BENEFITS (Asset Alloca
EMPLOYEE BENEFITS (Asset Allocation) (Details) - Pension Benefits - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | $ 164,819 | $ 157,644 | $ 128,430 |
Actual % of total | 100.00% | 100.00% | |
Fixed maturity securities - corporate bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | $ 10,051 | $ 11,003 | |
Actual % of total | 6.10% | 7.00% | |
Redeemable preferred stock | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | $ 2,697 | $ 3,216 | |
Actual % of total | 1.60% | 2.00% | |
Equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | $ 86,586 | $ 87,603 | |
Actual % of total | 52.50% | 55.60% | |
Core plus bond separate account fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | $ 20,222 | $ 17,948 | |
Actual % of total | 12.30% | 11.40% | |
U.S. property separate account fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | $ 20,841 | $ 15,502 | |
Actual % of total | 12.60% | 9.80% | |
Arbitrage fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | $ 8,716 | $ 8,506 | |
Actual % of total | 5.30% | 5.40% | |
United Life annuity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | $ 10,339 | $ 9,846 | |
Actual % of total | 6.30% | 6.20% | |
Pension Plan Assets, Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | $ 5,367 | $ 4,020 | |
Actual % of total | 3.30% | 2.60% | |
Minimum | Fixed maturity securities - corporate bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target allocation | 0.00% | ||
Minimum | Redeemable preferred stock | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target allocation | 0.00% | ||
Minimum | Equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target allocation | 50.00% | ||
Minimum | Core plus bond separate account fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target allocation | 0.00% | ||
Minimum | U.S. property separate account fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target allocation | 0.00% | ||
Minimum | Arbitrage fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target allocation | 0.00% | ||
Minimum | United Life annuity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target allocation | 5.00% | ||
Minimum | Pension Plan Assets, Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target allocation | 0.00% | ||
Maximum | Fixed maturity securities - corporate bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target allocation | 15.00% | ||
Maximum | Redeemable preferred stock | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target allocation | 10.00% | ||
Maximum | Equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target allocation | 70.00% | ||
Maximum | Core plus bond separate account fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target allocation | 40.00% | ||
Maximum | U.S. property separate account fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target allocation | 25.00% | ||
Maximum | Arbitrage fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target allocation | 10.00% | ||
Maximum | United Life annuity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target allocation | 10.00% | ||
Maximum | Pension Plan Assets, Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target allocation | 10.00% |
EMPLOYEE BENEFITS (Fair Value o
EMPLOYEE BENEFITS (Fair Value of Plan Assets) (Details) - Pension Benefits - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Defined Benefit Plan Disclosure [Line Items] | |||
Assets measured at fair value | $ 164,819 | $ 157,644 | $ 128,430 |
Fixed maturity securities - corporate bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets measured at fair value | 10,051 | 11,003 | |
Redeemable preferred stock | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets measured at fair value | 2,697 | 3,216 | |
Equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets measured at fair value | 86,586 | 87,603 | |
Core plus bond separate account fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets measured at fair value | 20,222 | 17,948 | |
U.S. property separate account fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets measured at fair value | 20,841 | 15,502 | |
U.S. property separate account fund | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets measured at fair value | 20,841 | 15,502 | $ 14,330 |
Arbitrage fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets measured at fair value | 8,716 | 8,506 | |
Recurring | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets measured at fair value | 154,477 | 147,789 | |
Recurring | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets measured at fair value | 94,647 | 94,830 | |
Recurring | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets measured at fair value | 38,989 | 37,457 | |
Recurring | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets measured at fair value | 20,841 | 15,502 | |
Recurring | Fixed maturity securities - corporate bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets measured at fair value | 10,051 | 11,003 | |
Recurring | Fixed maturity securities - corporate bonds | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets measured at fair value | 0 | 0 | |
Recurring | Fixed maturity securities - corporate bonds | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets measured at fair value | 10,051 | 11,003 | |
Recurring | Fixed maturity securities - corporate bonds | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets measured at fair value | 0 | 0 | |
Recurring | Redeemable preferred stock | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets measured at fair value | 2,697 | 3,216 | |
Recurring | Redeemable preferred stock | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets measured at fair value | 2,697 | 3,216 | |
Recurring | Redeemable preferred stock | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets measured at fair value | 0 | 0 | |
Recurring | Redeemable preferred stock | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets measured at fair value | 0 | 0 | |
Recurring | Equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets measured at fair value | 86,586 | 87,603 | |
Recurring | Equity securities | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets measured at fair value | 86,586 | 87,603 | |
Recurring | Equity securities | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets measured at fair value | 0 | 0 | |
Recurring | Equity securities | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets measured at fair value | 0 | 0 | |
Recurring | Core plus bond separate account fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets measured at fair value | 20,222 | 17,948 | |
Recurring | Core plus bond separate account fund | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets measured at fair value | 0 | 0 | |
Recurring | Core plus bond separate account fund | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets measured at fair value | 20,222 | 17,948 | |
Recurring | Core plus bond separate account fund | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets measured at fair value | 0 | 0 | |
Recurring | U.S. property separate account fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets measured at fair value | 20,841 | 15,502 | |
Recurring | U.S. property separate account fund | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets measured at fair value | 0 | 0 | |
Recurring | U.S. property separate account fund | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets measured at fair value | 0 | 0 | |
Recurring | U.S. property separate account fund | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets measured at fair value | 20,841 | 15,502 | |
Recurring | Arbitrage fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets measured at fair value | 8,716 | 8,506 | |
Recurring | Arbitrage fund | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets measured at fair value | 0 | 0 | |
Recurring | Arbitrage fund | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets measured at fair value | 8,716 | 8,506 | |
Recurring | Arbitrage fund | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets measured at fair value | 0 | 0 | |
Recurring | Money market funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets measured at fair value | 5,364 | 4,011 | |
Recurring | Money market funds | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets measured at fair value | 5,364 | 4,011 | |
Recurring | Money market funds | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets measured at fair value | 0 | 0 | |
Recurring | Money market funds | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assets measured at fair value | $ 0 | $ 0 |
EMPLOYEE BENEFITS (Change in Fa
EMPLOYEE BENEFITS (Change in Fair Value of Pension Plan Assets) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Pension Benefits | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | $ 157,644 | $ 128,430 |
Fair value of plan assets at end of year | 164,819 | 157,644 |
U.S. property separate account fund | Pension Benefits | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | 15,502 | |
Fair value of plan assets at end of year | 20,841 | 15,502 |
U.S. property separate account fund | Level 3 | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Company contribution | 4,000 | |
U.S. property separate account fund | Level 3 | Pension Benefits | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | 15,502 | 14,330 |
Unrealized gains | 1,339 | 1,172 |
Fair value of plan assets at end of year | $ 20,841 | $ 15,502 |
EMPLOYEE BENEFITS (Assumptions)
EMPLOYEE BENEFITS (Assumptions) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Assumptions Used to Determine Benefit Obligations [Abstract] | |||
Rate of compensation increase | 3.00% | 3.00% | |
Assumptions Used to Determine Net Periodic Benefit Cost [Abstract] | |||
Expected long-term rate of return on plan assets | 6.70% | 7.50% | 7.50% |
Rate of compensation increase | 3.00% | 3.00% | 3.00% |
Effect of One-Percentage Point Change in Assumed Health Care Cost Trend Rates [Abstract] | |||
Effect of 1% increase on the net periodic postretirement health care benefit cost | $ 677 | ||
Effect of 1% decrease on the net periodic postretirement health care benefit cost | (530) | ||
Effect of 1% increase on the accumulated postretirement benefit obligation | 5,066 | ||
Effect of 1% decrease on the accumulated postretirement benefit obligation | $ (4,107) | ||
Pension Benefits | |||
Assumptions Used to Determine Benefit Obligations [Abstract] | |||
Discount rate | 4.18% | 3.65% | |
Assumptions Used to Determine Net Periodic Benefit Cost [Abstract] | |||
Discount rate | 3.65% | 4.17% | 4.21% |
Post-retirement Benefits | |||
Assumptions Used to Determine Benefit Obligations [Abstract] | |||
Discount rate | 4.18% | 3.65% | |
Assumptions Used to Determine Net Periodic Benefit Cost [Abstract] | |||
Discount rate | 3.65% | 4.17% | 4.21% |
Health Care Benefits | |||
Assumed Health Care Cost Trend Rates [Abstract] | |||
Health care cost trend rates assumed for next year | 6.75% | 7.00% | |
Rate to which the health care trend rate is assumed to decline (ultimate trend rate) | 4.50% | 4.50% | |
Dental Claims | |||
Assumed Health Care Cost Trend Rates [Abstract] | |||
Health care cost trend rates assumed for next year | 4.00% | 4.00% |
EMPLOYEE BENEFITS (Obligation a
EMPLOYEE BENEFITS (Obligation and Funded Status) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Pension Benefits | |||
Reconciliation of benefit obligation | |||
Benefit obligation at beginning of year | $ 208,349 | $ 171,876 | |
Service cost | 8,701 | 6,857 | $ 6,490 |
Interest cost | 7,500 | 7,060 | 6,654 |
Actuarial loss | (17,535) | 26,963 | |
Adjustment for plan amendment | 0 | 0 | |
Benefit payments | (4,859) | (4,407) | |
Benefit obligation at end of year | 202,156 | 208,349 | 171,876 |
Reconciliation of fair value of plan assets | |||
Fair value of plan assets at beginning of year | 157,644 | 128,430 | |
Actual return on plan assets | (4,366) | 22,225 | |
Employer contributions | 16,400 | 11,396 | |
Benefit payments | (4,859) | (4,407) | |
Fair value of plan assets at end of year | 164,819 | 157,644 | 128,430 |
Funded status at end of year | (37,337) | (50,705) | |
Accumulated pension benefit obligation | 183,317 | 184,436 | |
Post-retirement Benefits | |||
Reconciliation of benefit obligation | |||
Benefit obligation at beginning of year | 55,728 | 46,785 | |
Service cost | 2,998 | 2,021 | 3,728 |
Interest cost | 2,009 | 1,927 | 3,015 |
Actuarial loss | (12,094) | 6,326 | |
Adjustment for plan amendment | (16,159) | 0 | |
Benefit payments | (1,509) | (1,331) | |
Benefit obligation at end of year | 30,973 | 55,728 | 46,785 |
Reconciliation of fair value of plan assets | |||
Fair value of plan assets at beginning of year | 0 | 0 | |
Actual return on plan assets | 0 | 0 | |
Employer contributions | 1,509 | 1,331 | |
Benefit payments | (1,509) | (1,331) | |
Fair value of plan assets at end of year | 0 | 0 | $ 0 |
Funded status at end of year | $ (30,973) | $ (55,728) |
EMPLOYEE BENEFITS (AOCI) (Detai
EMPLOYEE BENEFITS (AOCI) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Unrecognized prior service cost | $ 0 | $ 0 |
Unrecognized actuarial (gain) loss | 53,616 | 60,571 |
Total amounts recognized in AOCI | 53,616 | 60,571 |
Anticipated amortization of net actuarial losses in next fiscal year | 3,603 | |
Post-retirement Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Unrecognized prior service cost | (37,631) | (26,880) |
Unrecognized actuarial (gain) loss | 10,786 | 25,235 |
Total amounts recognized in AOCI | (26,845) | $ (1,645) |
Anticipated amortization of net actuarial losses in next fiscal year | $ 894 |
EMPLOYEE BENEFITS (Net Periodic
EMPLOYEE BENEFITS (Net Periodic Benefit Cost) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Pension Benefits | |||
Net periodic benefit cost | |||
Service cost | $ 8,701 | $ 6,857 | $ 6,490 |
Interest cost | 7,500 | 7,060 | 6,654 |
Expected return on plan assets | (10,502) | (9,650) | (7,952) |
Amortization of prior service cost | 0 | 0 | 0 |
Amortization of net loss | 4,287 | 3,562 | 3,968 |
Net periodic benefit cost | 9,986 | 7,829 | 9,160 |
Post-retirement Benefits | |||
Net periodic benefit cost | |||
Service cost | 2,998 | 2,021 | 3,728 |
Interest cost | 2,009 | 1,927 | 3,015 |
Expected return on plan assets | 0 | 0 | 0 |
Amortization of prior service cost | (5,409) | (5,409) | 0 |
Amortization of net loss | 2,355 | 1,846 | 1,518 |
Net periodic benefit cost | $ 1,953 | $ 385 | $ 8,261 |
EMPLOYEE BENEFITS (Expected Ben
EMPLOYEE BENEFITS (Expected Benefit Payments) (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Pension Benefits | |
Expected Future Benefit Payments | |
2,019 | $ 6,280 |
2,020 | 6,870 |
2,021 | 7,570 |
2,022 | 8,230 |
2,023 | 8,940 |
2024 - 2028 | 55,930 |
Post-retirement Benefits | |
Expected Future Benefit Payments | |
2,019 | 960 |
2,020 | 1,030 |
2,021 | 1,120 |
2,022 | 1,210 |
2,023 | 1,300 |
2024 - 2028 | $ 8,480 |
EMPLOYEE BENEFITS (Profit-Shari
EMPLOYEE BENEFITS (Profit-Sharing Plan and ESOP) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Profit-Sharing Plan | |||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | |||
Employer contribution to the profit-sharing plan | $ 7,607 | $ 4,987 | $ 2,904 |
STOCK-BASED COMPENSATION (Stock
STOCK-BASED COMPENSATION (Stock Award Plans) (Details) - shares | 1 Months Ended | 12 Months Ended | 120 Months Ended | 168 Months Ended |
May 31, 2014 | Dec. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award Available for Grant [Roll Forward] | ||||
Number of option awards exercised (in shares) | 267,399 | |||
Employee Stock Award Plan-2008 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award expiration term | 10 years | |||
Share-based Compensation Arrangement by Share-based Payment Award Available for Grant [Roll Forward] | ||||
Beginning balance (in shares) | 996,828 | 1,900,000 | ||
Additional shares authorized (in shares) | 1,500,000 | 0 | 1,500,000 | |
Number of awards granted (in shares) | (151,096) | (3,023,067) | ||
Number of awards forfeited or expired (in shares) | 45,125 | 513,924 | ||
Ending balance (in shares) | 890,857 | 890,857 | 890,857 | |
Employee Stock Award Plan-2008 | Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award Available for Grant [Roll Forward] | ||||
Number of option awards exercised (in shares) | 238,719 | 1,324,614 | ||
Employee Stock Award Plan-2008 | Unrestricted Stock Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award Available for Grant [Roll Forward] | ||||
Number of awards granted (in shares) | (900) | (9,370) | ||
Employee Stock Award Plan-2008 | Restricted Stock Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award Available for Grant [Roll Forward] | ||||
Number of restricted stock awards vested (in shares) | 20,025 | 58,193 | ||
Director Plan - 2005 | ||||
Share-based Compensation Arrangement by Share-based Payment Award Available for Grant [Roll Forward] | ||||
Beginning balance (in shares) | 61,813 | 300,000 | ||
Number of awards granted (in shares) | (12,650) | (274,840) | ||
Number of awards forfeited or expired (in shares) | 0 | 24,003 | ||
Ending balance (in shares) | 49,163 | 49,163 | 49,163 | |
Director Plan - 2005 | Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award Available for Grant [Roll Forward] | ||||
Number of option awards exercised (in shares) | 28,680 | 117,961 | ||
Director Plan - 2005 | Restricted Stock Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award Available for Grant [Roll Forward] | ||||
Number of restricted stock awards vested (in shares) | 17,269 | 71,541 | ||
Minimum | Employee Stock Award Plan-2008 | Restricted Stock Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period of restricted stock awards | 3 years | |||
Maximum | Employee Stock Award Plan-2008 | Restricted Stock Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period of restricted stock awards | 5 years | |||
Tranche one | Employee Stock Award Plan-2008 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Percentage of option awards vest and exercisable in installments | 20.00% | |||
Tranche two | Employee Stock Award Plan-2008 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Percentage of option awards vest and exercisable in installments | 33.30% |
STOCK-BASED COMPENSATION (Sto_2
STOCK-BASED COMPENSATION (Stock-Based Compensation Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Allocated share-based compensation expense | $ 5,249 | $ 4,808 | $ 3,696 |
2,019 | 3,939 | ||
2,020 | 2,289 | ||
2,021 | 537 | ||
2,022 | 38 | ||
2,023 | 0 | ||
Total | $ 6,803 |
STOCK-BASED COMPENSATION (Analy
STOCK-BASED COMPENSATION (Analysis of Stock Options Award Activity) (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2017USD ($)$ / sharesshares | Dec. 31, 2016USD ($) | |
Shares | |||
Outstanding at beginning of period (in shares) | shares | 1,101,051 | ||
Granted (in shares) | shares | 85,517 | ||
Exercised (in shares) | shares | (267,399) | ||
Forfeited (in shares) | shares | 20,266 | ||
Expired (in shares) | shares | (1,000) | ||
Outstanding at end of period (in shares) | shares | 897,903 | 1,101,051 | |
Exercisable at end of period (in shares) | shares | 458,465 | ||
Weighted-Average Exercise Price | |||
Outstanding at beginning of period (in dollars per share) | $ / shares | $ 31.16 | ||
Granted (in dollars per share) | $ / shares | 45.03 | ||
Exercised (in dollars per share) | $ / shares | 28.30 | ||
Forfeited (in dollars per share) | $ / shares | 35.27 | ||
Expired (in dollars per share) | $ / shares | 34.39 | ||
Outstanding at end of period (in dollars per share) | $ / shares | 33.24 | $ 31.16 | |
Exercisable at end of period (in dollars per share) | $ / shares | $ 28.92 | ||
Outstanding at end of period, weighted-average remaining life | 6 years 2 months 12 days | ||
Exercisable at end of period, weighted-average remaining life | 5 years 1 month 2 days | ||
Outstanding at end of period, aggregate intrinsic value | $ | $ 19,944 | ||
Exercisable at end of period, aggregate intrinsic value | $ | 12,162 | ||
Intrinsic value of options exercised | $ | $ 5,850 | $ 3,159 | $ 4,339 |
STOCK-BASED COMPENSATION (Ana_2
STOCK-BASED COMPENSATION (Analysis of Restricted Stock Award Activity) (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2017USD ($)$ / sharesshares | Dec. 31, 2016USD ($) | |
Weighted-Average Grant Date Fair Value | |||
Allocated share-based compensation expense | $ | $ 5,249 | $ 4,808 | $ 3,696 |
Restricted Stock Awards | |||
Shares | |||
Non-vested at beginning of period (in shares) | shares | 267,799 | ||
Granted (in shares) | shares | 79,739 | ||
Vested (in shares) | shares | (40,362) | ||
Forfeited (in shares) | shares | (23,201) | ||
Non-vested at end of period (in shares) | shares | 283,975 | 267,799 | |
Weighted-Average Grant Date Fair Value | |||
Non-vested at beginning of period (in dollars per share) | $ / shares | $ 36.66 | ||
Granted (in dollars per share) | $ / shares | 46.02 | ||
Vested (in dollars per share) | $ / shares | 33.95 | ||
Forfeited (in dollars per share) | $ / shares | 33.86 | ||
Non-vested at end of period (in dollars per share) | $ / shares | $ 39.90 | $ 36.66 | |
Allocated share-based compensation expense | $ | $ 3,877 | $ 2,987 | $ 1,766 |
Total compensation expense that has yet to be recognized | $ | 4,589 | ||
Intrinsic value of the unvested restricted stock awards outstanding | $ | $ 15,746 | $ 12,206 |
STOCK-BASED COMPENSATION (Assum
STOCK-BASED COMPENSATION (Assumptions) (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Risk-free interest rate | 2.79% | 2.23% | 1.53% |
Expected volatility | 21.79% | 27.58% | 25.44% |
Expected option life | 7 years | 7 years | 7 years |
Expected dividends (in dollars per share) | $ 1.12 | $ 1 | $ 0.88 |
Weighted-average grant-date fair value of options granted during the year (in dollars per share) | $ 8.90 | $ 9.93 | $ 8.42 |
STOCK-BASED COMPENSATION (Sto_3
STOCK-BASED COMPENSATION (Stock Options Outstanding and Exercisable) (Details) | 12 Months Ended |
Dec. 31, 2018$ / sharesshares | |
Exercise Price $15.01 to $21.00 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices, Lower Range (in dollars per share) | $ 15.01 |
Range of Exercise Prices, Upper Range (in dollars per share) | $ 21 |
Number Outstanding (in shares) | shares | 58,349 |
Weighted-Average Remaining Contractual Life | 2 years 2 months 12 days |
Weighted-Average Exercise Price (in dollars per share) | $ 20.34 |
Number Exercisable (in shares) | shares | 58,349 |
Weighted-Average Exercise Price (in dollars per share) | $ 20.34 |
Exercise Price $21.01 to $28.00 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices, Lower Range (in dollars per share) | 21.01 |
Range of Exercise Prices, Upper Range (in dollars per share) | $ 28 |
Number Outstanding (in shares) | shares | 93,155 |
Weighted-Average Remaining Contractual Life | 3 years 6 months 14 days |
Weighted-Average Exercise Price (in dollars per share) | $ 23.32 |
Number Exercisable (in shares) | shares | 93,155 |
Weighted-Average Exercise Price (in dollars per share) | $ 23.32 |
Exercise Price $28.01 to $35.00 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices, Lower Range (in dollars per share) | 28.01 |
Range of Exercise Prices, Upper Range (in dollars per share) | $ 35 |
Number Outstanding (in shares) | shares | 375,096 |
Weighted-Average Remaining Contractual Life | 5 years 8 months 15 days |
Weighted-Average Exercise Price (in dollars per share) | $ 29.29 |
Number Exercisable (in shares) | shares | 227,304 |
Weighted-Average Exercise Price (in dollars per share) | $ 29.32 |
Exercise Price $35.01 to $43.00 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices, Lower Range (in dollars per share) | 35.01 |
Range of Exercise Prices, Upper Range (in dollars per share) | $ 43 |
Number Outstanding (in shares) | shares | 287,910 |
Weighted-Average Remaining Contractual Life | 7 years 7 months 24 days |
Weighted-Average Exercise Price (in dollars per share) | $ 40.79 |
Number Exercisable (in shares) | shares | 79,657 |
Weighted-Average Exercise Price (in dollars per share) | $ 40.64 |
Exercise Price $44.80 to $44.80 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices, Lower Range (in dollars per share) | 44.80 |
Range of Exercise Prices, Upper Range (in dollars per share) | $ 44.80 |
Number Outstanding (in shares) | shares | 80,712 |
Weighted-Average Remaining Contractual Life | 9 years 1 month 24 days |
Weighted-Average Exercise Price (in dollars per share) | $ 44.80 |
Number Exercisable (in shares) | shares | 0 |
Weighted-Average Exercise Price (in dollars per share) | $ 0 |
Exercise Price $52.16 to $52.16 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices, Lower Range (in dollars per share) | 52.16 |
Range of Exercise Prices, Upper Range (in dollars per share) | $ 52.16 |
Number Outstanding (in shares) | shares | 2,681 |
Weighted-Average Remaining Contractual Life | 9 years 4 months 13 days |
Weighted-Average Exercise Price (in dollars per share) | $ 52,160 |
Number Exercisable (in shares) | shares | 0 |
Weighted-Average Exercise Price (in dollars per share) | $ 0 |
Exercise Price $15.01 to $52.16 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices, Lower Range (in dollars per share) | 15.01 |
Range of Exercise Prices, Upper Range (in dollars per share) | $ 52.16 |
Number Outstanding (in shares) | shares | 897,903 |
Weighted-Average Remaining Contractual Life | 6 years 2 months 12 days |
Weighted-Average Exercise Price (in dollars per share) | $ 33.24 |
Number Exercisable (in shares) | shares | 458,465 |
Weighted-Average Exercise Price (in dollars per share) | $ 28.92 |
SEGMENT INFORMATION (Narrative)
SEGMENT INFORMATION (Narrative) (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended |
Dec. 31, 2017segment | Sep. 17, 2017segment | Dec. 31, 2018segmentlocation | |
Segment Reporting Information [Line Items] | |||
Number of reportable business segments | segment | 1 | 2 | 1 |
Continuing Operations - Property and Casualty Insurance | |||
Segment Reporting Information [Line Items] | |||
Number of domestic business locations | location | 6 | ||
Continuing Operations - Property and Casualty Insurance | Commercial Lines | Product Concentration Risk | Sales Revenue, Segment | |||
Segment Reporting Information [Line Items] | |||
Percentage of insurance in force | 93.10% | ||
Continuing Operations - Property and Casualty Insurance | Personal Lines | Product Concentration Risk | Sales Revenue, Segment | |||
Segment Reporting Information [Line Items] | |||
Percentage of insurance in force | 6.90% |
SEGMENT INFORMATION (Net Premiu
SEGMENT INFORMATION (Net Premiums) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Total net premiums earned from continuing operations | $ 1,037,451 | $ 997,492 | $ 936,131 |
Continuing Operations - Property and Casualty Insurance | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Reinsurance assumed | 16,957 | 15,059 | 17,037 |
Other | 2,938 | 2,988 | 2,835 |
Total net premiums earned from continuing operations | 1,037,451 | 997,492 | 936,131 |
Continuing Operations - Property and Casualty Insurance | Other liability | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Net premiums earned | 311,931 | 306,480 | 289,982 |
Continuing Operations - Property and Casualty Insurance | Fire and allied lines | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Net premiums earned | 276,193 | 270,716 | 265,221 |
Continuing Operations - Property and Casualty Insurance | Automobile | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Net premiums earned | 313,521 | 277,511 | 239,216 |
Continuing Operations - Property and Casualty Insurance | Workers' compensation | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Net premiums earned | 95,203 | 104,166 | 103,605 |
Continuing Operations - Property and Casualty Insurance | Fidelity and surety | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Net premiums earned | 24,437 | 24,981 | 22,507 |
Continuing Operations - Property and Casualty Insurance | Reinsurance assumed | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Reinsurance assumed | 13,228 | 10,650 | 12,765 |
Discontinued Operations | Discontinued Operations - Life Insurance | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Other | 12 | 48 | 58 |
Total net premiums earned from continuing operations | 13,003 | 61,368 | 87,270 |
Discontinued Operations | Discontinued Operations - Life Insurance | Ordinary life (excluding universal life) | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Net premiums earned | 7,068 | 35,388 | 63,668 |
Discontinued Operations | Discontinued Operations - Life Insurance | Universal life policy fees | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Net premiums earned | 3,363 | 13,145 | 11,577 |
Discontinued Operations | Discontinued Operations - Life Insurance | Immediate annuities with life contingencies | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Net premiums earned | 2,515 | 11,691 | 10,533 |
Discontinued Operations | Discontinued Operations - Life Insurance | Accident and health | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Net premiums earned | $ 45 | $ 1,096 | $ 1,434 |
QUARTERLY SUPPLEMENTARY FINAN_3
QUARTERLY SUPPLEMENTARY FINANCIAL INFORMATION (UNAUDITED) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Continuing Operations [Abstract] | |||||||||||
Total revenues | $ 252,062 | $ 291,910 | $ 275,399 | $ 250,795 | $ 273,355 | $ 269,617 | $ 258,487 | $ 251,278 | $ 1,070,166 | $ 1,052,737 | $ 996,362 |
Income (loss) before income taxes | (41,512) | 12,598 | (1,809) | 21,573 | 29,369 | (32,394) | (4,331) | 23,006 | (9,150) | 15,650 | 57,497 |
Net income (loss) | $ (29,336) | $ 11,070 | $ 157 | $ 20,364 | $ 45,259 | $ (19,082) | $ 109 | $ 18,584 | $ 2,255 | $ 44,870 | $ 49,118 |
Basic earnings per share (in dollars per share) | $ (1.17) | $ 0.44 | $ 0.01 | $ 0.82 | $ 1.81 | $ (0.77) | $ 0 | $ 0.73 | $ 0.09 | $ 1.79 | $ 1.94 |
Diluted earnings per share (in dollars per share) | $ (1.17) | $ 0.43 | $ 0.01 | $ 0.80 | $ 1.78 | $ (0.77) | $ 0 | $ 0.72 | $ 0.09 | $ 1.75 | $ 1.90 |
Discontinued Operations [Abstract] | |||||||||||
Total revenues | $ 0 | $ 0 | $ 0 | $ 24,755 | $ 28,386 | $ 27,054 | $ 28,492 | $ 31,781 | $ 24,755 | $ 115,713 | |
Income (loss) before income taxes | 0 | 0 | 0 | (1,349) | 2,294 | 1,880 | 4,386 | 2,083 | (1,349) | 10,643 | |
Net income (loss) | $ 0 | $ 0 | $ 0 | $ (1,912) | $ 734 | $ 1,218 | $ 2,849 | $ 1,352 | $ (1,912) | $ 6,153 | $ 786 |
Basic earnings per share (in dollars per share) | $ 0 | $ 0 | $ 0 | $ (0.08) | $ 0.03 | $ 0.05 | $ 0.11 | $ 0.05 | $ (0.08) | $ 0.24 | $ 0.03 |
Diluted earnings per share (in dollars per share) | $ 0 | $ 0 | $ 0 | $ (0.07) | $ 0.03 | $ 0.05 | $ 0.11 | $ 0.05 | $ (0.07) | $ 0.24 | $ 0.03 |
EARNINGS PER COMMON SHARE (Deta
EARNINGS PER COMMON SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Basic and Diluted Earnings per Share [Line Items] | |||||||||||
Net income from continuing operations | $ (29,336) | $ 11,070 | $ 157 | $ 20,364 | $ 45,259 | $ (19,082) | $ 109 | $ 18,584 | $ 2,255 | $ 44,870 | $ 49,118 |
Weighted-average common shares outstanding (in shares) | 25,006,211 | 25,103,720 | 25,335,706 | ||||||||
Weighted-average common shares, diluted (in shares) | 25,622,812 | 25,640,604 | 25,804,678 | ||||||||
Earnings per common share from continuing operations, basic (in dollars per share) | $ (1.17) | $ 0.44 | $ 0.01 | $ 0.82 | $ 1.81 | $ (0.77) | $ 0 | $ 0.73 | $ 0.09 | $ 1.79 | $ 1.94 |
Earnings per common share from continuing operations, diluted (in dollars per share) | (1.17) | 0.43 | 0.01 | 0.80 | 1.78 | (0.77) | 0 | 0.72 | 0.09 | 1.75 | 1.90 |
Earnings per common share from discontinued operations, basic (in dollars per share) | 0 | 0 | 0 | (0.08) | 0.03 | 0.05 | 0.11 | 0.05 | (0.08) | 0.24 | 0.03 |
Earnings per common share from discontinued operations, diluted (in dollars per share) | $ 0 | $ 0 | $ 0 | $ (0.07) | $ 0.03 | $ 0.05 | $ 0.11 | $ 0.05 | (0.07) | 0.24 | 0.03 |
Gain on sale of discontinued operations, basic (in dollars per share) | 1.10 | 0 | 0 | ||||||||
Gain on sale of discontinued operations, diluted (in dollar per share) | 1.07 | 0 | 0 | ||||||||
Earnings per common share, basic (in dollars per share) | 1.11 | 2.03 | 1.97 | ||||||||
Earnings per common share, diluted (in dollars per share) | $ 1.08 | $ 1.99 | $ 1.93 | ||||||||
Awards excluded from diluted calculation (in shares) | 2,681 | 0 | 0 | ||||||||
Restricted Stock Awards | |||||||||||
Basic and Diluted Earnings per Share [Line Items] | |||||||||||
Add dilutive effect of restricted stock awards (in shares) | 273,544 | 250,530 | 155,059 | ||||||||
Stock Options | |||||||||||
Basic and Diluted Earnings per Share [Line Items] | |||||||||||
Add dilutive effect of restricted stock awards (in shares) | 343,057 | 286,354 | 313,913 |
LEASE COMMITMENTS (Details)
LEASE COMMITMENTS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Leases [Abstract] | |||
Rental expense, operating leases | $ 6,644 | $ 7,197 | $ 6,908 |
Lease term | 5 years | ||
Monthly lease payments | $ 154 | ||
Future minimum rental payments: | |||
2,019 | 7,214 | ||
2,020 | 6,892 | ||
2,021 | 4,635 | ||
2,022 | 1,717 | ||
2,023 | 1,043 | ||
Thereafter | 181 | ||
Total | $ 21,682 |
CREDIT FACILITY (Details)
CREDIT FACILITY (Details) | Feb. 02, 2016USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) |
Line of Credit Facility [Line Items] | ||||
Maximum borrowing capacity | $ 100,000,000 | |||
Debt covenant, maximum debt to total capitalization ratio | 0.35 | |||
Interest expense incurred | 0 | $ 0 | $ 0 | |
Credit Facility | ||||
Line of Credit Facility [Line Items] | ||||
Maximum borrowing capacity | $ 50,000,000 | 50,000,000 | ||
Debt instrument, term | 4 years | |||
Outstanding balance | $ 0 | $ 0 | ||
Letter of Credit Subfacility | ||||
Line of Credit Facility [Line Items] | ||||
Maximum borrowing capacity | $ 20,000,000 | |||
Swingline Subfacility | ||||
Line of Credit Facility [Line Items] | ||||
Maximum borrowing capacity | $ 5,000,000 |
INTANGIBLE ASSETS (Intangible A
INTANGIBLE ASSETS (Intangible Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Schedule Of Finite And Indefinite Lived Intangible Assets [Line Items] | ||
Goodwill | $ 15,091 | $ 15,091 |
Net intangible assets | 8,161 | 8,880 |
State insurance licenses | ||
Schedule Of Finite And Indefinite Lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets | 3,020 | 3,020 |
Agency relationships | ||
Schedule Of Finite And Indefinite Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | 10,338 | 10,338 |
Accumulated amortization | (6,153) | (5,566) |
Finite-lived intangible assets, net | 4,185 | 4,772 |
Software | ||
Schedule Of Finite And Indefinite Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | 3,260 | 3,260 |
Accumulated amortization | (3,260) | (3,260) |
Finite-lived intangible assets, net | 0 | 0 |
Trade names | ||
Schedule Of Finite And Indefinite Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | 1,978 | 1,978 |
Accumulated amortization | (1,022) | (890) |
Finite-lived intangible assets, net | 956 | 1,088 |
Favorable contract | ||
Schedule Of Finite And Indefinite Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | 286 | 286 |
Accumulated amortization | (286) | (286) |
Finite-lived intangible assets, net | $ 0 | $ 0 |
INTANGIBLE ASSETS (Estimated Us
INTANGIBLE ASSETS (Estimated Useful Lives) (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Agency relationships | |
Finite-Lived Intangible Assets [Line Items] | |
Useful Life | 15 years |
Software | |
Finite-Lived Intangible Assets [Line Items] | |
Useful Life | 2 years |
Trade names | |
Finite-Lived Intangible Assets [Line Items] | |
Useful Life | 15 years |
Favorable contract | |
Finite-Lived Intangible Assets [Line Items] | |
Useful Life | 2 years |
INTANGIBLE ASSETS (Future Amort
INTANGIBLE ASSETS (Future Amortization Expense) (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Estimated Aggregate Amortization Expense | |
2,019 | $ 709 |
2,020 | 709 |
2,021 | 709 |
2,022 | 709 |
2,023 | $ 709 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE INCOME (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2018 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Cumulative effect of change in accounting principle | $ (191,244) | |||
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward] | ||||
Change in accumulated other comprehensive income before reclassifications | $ (13,409) | $ 28,589 | $ 27,990 | |
Reclassification adjustments from accumulated other comprehensive income | 5,867 | (638) | 628 | |
Accumulated effect of change in enacted tax rate | 31,308 | |||
Net unrealized appreciation on investments | ||||
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward] | ||||
Beginning balance | 214,865 | 133,892 | 128,369 | |
Change in accumulated other comprehensive income before reclassifications | (33,564) | 48,467 | 8,461 | |
Reclassification adjustments from accumulated other comprehensive income | 620 | (4,152) | (2,938) | |
Accumulated effect of change in enacted tax rate | 36,658 | |||
Ending balance | (9,323) | 214,865 | 133,892 | |
Liability for underfunded employee benefit costs | ||||
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward] | ||||
Beginning balance | (46,551) | (24,837) | (47,932) | |
Change in accumulated other comprehensive income before reclassifications | 20,155 | (19,878) | 19,529 | |
Reclassification adjustments from accumulated other comprehensive income | 5,247 | 3,514 | 3,566 | |
Accumulated effect of change in enacted tax rate | (5,350) | |||
Ending balance | (21,149) | (46,551) | (24,837) | |
Accumulated other comprehensive income, net of tax | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Cumulative effect of change in accounting principle | (191,244) | 0 | 0 | |
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward] | ||||
Beginning balance | 168,314 | 109,055 | 80,437 | |
Accumulated effect of change in enacted tax rate | 0 | 31,308 | 0 | |
Ending balance | $ (30,472) | $ 168,314 | $ 109,055 |
DISCONTINUED OPERATIONS Narrati
DISCONTINUED OPERATIONS Narrative (Details) - USD ($) $ in Thousands | Mar. 30, 2018 | Sep. 18, 2017 | Dec. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Gain on sale of discontinued operations, net of taxes | $ 27,307 | $ 0 | $ 0 | |||
United Life Insurance Company | Discontinued Operations, Disposed of by Sale | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Cash proceeds | $ 280,000 | |||||
Adjustment to proceeds from divestiture | 21 | |||||
Proceeds from divestiture of business | 279,979 | |||||
Gain on sale of discontinued operations, net of taxes | $ 27,307 | |||||
Transition services agreement duration (up to) | 24 months | |||||
Poceeds from TSA | $ 414 |
DISCONTINUED OPERATIONS Balance
DISCONTINUED OPERATIONS Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Fixed maturities | ||
Total assets held for sale | $ 0 | $ 1,586,134 |
Liabilities | ||
Total liabilities held for sale | 0 | 1,347,135 |
United Life Insurance Company | Discontinued Operations, Disposed of by Sale | ||
Fixed maturities | ||
Held-to-maturity, at amortized cost (fair value $0 in 2018 and $34 in 2017) | 0 | 34 |
Fixed maturities, held-to-maturity securities, fair value | 34 | 49 |
Available-for-sale, at fair value (amortized cost $0 in 2018 and $1,412,291 in 2017) | 0 | 1,430,025 |
Fixed maturities, available-for-sale securities, amortized cost | 1,412,291 | 1,429,270 |
Equity Securities available-for-sale, at fair value (cost $0 in 2018 and $5,099 in 2017) | 0 | 23,653 |
Equity securities available-for-sale, amortized cost | 5,099 | 8,510 |
Mortgage loans | 0 | 3,435 |
Policy loans | 0 | 5,815 |
Other long-term investments | 0 | 16,437 |
Total Investments | 0 | 1,479,399 |
Cash and cash equivalents | 0 | 15,851 |
Deferred policy acquisition costs | 0 | 71,151 |
Other assets | 0 | 19,733 |
Total assets held for sale | 0 | 1,586,134 |
Liabilities | ||
Future policy benefits and losses | 0 | 1,320,401 |
Deferred income taxes | 0 | 18,716 |
Accrued expenses and other liabilities | 0 | 8,018 |
Total liabilities held for sale | $ 0 | $ 1,347,135 |
DISCONTINUED OPERATIONS Stateme
DISCONTINUED OPERATIONS Statements of Income (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Net realized investment gains (losses) | |||||||||||
Total revenues | $ 0 | $ 0 | $ 0 | $ 24,755 | $ 28,386 | $ 27,054 | $ 28,492 | $ 31,781 | $ 24,755 | $ 115,713 | |
Benefits, Losses and Expenses | |||||||||||
Income (loss) from discontinued operations before income taxes | 0 | 0 | 0 | (1,349) | 2,294 | 1,880 | 4,386 | 2,083 | (1,349) | 10,643 | |
Federal income tax expense | 563 | 4,490 | $ 384 | ||||||||
Net income (loss) from discontinued operations | $ 0 | $ 0 | $ 0 | $ (1,912) | $ 734 | $ 1,218 | $ 2,849 | $ 1,352 | $ (1,912) | $ 6,153 | $ 786 |
Earnings per common share from discontinued operations: | |||||||||||
Basic (in dollars per share) | $ 0 | $ 0 | $ 0 | $ (0.08) | $ 0.03 | $ 0.05 | $ 0.11 | $ 0.05 | $ (0.08) | $ 0.24 | $ 0.03 |
Diluted (in dollars per share) | $ 0 | $ 0 | $ 0 | $ (0.07) | $ 0.03 | $ 0.05 | $ 0.11 | $ 0.05 | $ (0.07) | $ 0.24 | $ 0.03 |
United Life Insurance Company | Discontinued Operations, Disposed of by Sale | |||||||||||
Revenues | |||||||||||
Net premiums earned | $ 13,003 | $ 61,368 | $ 87,270 | ||||||||
Investment income, net of investment expenses | 12,663 | 49,720 | 51,538 | ||||||||
Net realized investment gains (losses) | |||||||||||
Total net realized investment gains (losses) | (1,057) | 4,008 | 1,156 | ||||||||
Other income | 146 | 617 | 621 | ||||||||
Total revenues | 24,755 | 115,713 | 140,585 | ||||||||
Benefits, Losses and Expenses | |||||||||||
Losses and loss settlement expenses | 10,823 | 40,451 | 31,365 | ||||||||
Increase in liability for future policy benefits | 5,023 | 27,632 | 59,969 | ||||||||
Amortization of deferred policy acquisition costs | 1,895 | 5,181 | 8,121 | ||||||||
Other underwriting expenses | 3,864 | 13,281 | 19,881 | ||||||||
Interest on policyholders’ accounts | 4,499 | 18,525 | 20,079 | ||||||||
Total benefits, losses and expenses | 26,104 | 105,070 | 139,415 | ||||||||
Income (loss) from discontinued operations before income taxes | (1,349) | 10,643 | 1,170 | ||||||||
Federal income tax expense | 563 | 4,490 | 384 | ||||||||
Net income (loss) from discontinued operations | $ (1,912) | $ 6,153 | $ 786 | ||||||||
Earnings per common share from discontinued operations: | |||||||||||
Basic (in dollars per share) | $ (0.08) | $ 0.24 | $ 0.03 | ||||||||
Diluted (in dollars per share) | $ (0.07) | $ 0.24 | $ 0.03 |
Schedule I. Summary of Invest_2
Schedule I. Summary of Investments - Other than Investments in Related Parties (Details) $ in Thousands | Dec. 31, 2018USD ($) |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost or Amortized Cost | $ 1,900,465 |
Fair Value | 2,074,362 |
Amounts at Which Shown in Balance Sheet | 2,074,123 |
Fixed Maturities | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost or Amortized Cost | 1,772,566 |
Fair Value | 1,762,728 |
Amounts at Which Shown in Balance Sheet | 1,762,728 |
United States Government and government agencies and authorities | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost or Amortized Cost | 243,167 |
Fair Value | 242,100 |
Amounts at Which Shown in Balance Sheet | 242,100 |
States, municipalities and political subdivisions | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost or Amortized Cost | 939,068 |
Fair Value | 936,060 |
Amounts at Which Shown in Balance Sheet | 936,060 |
Foreign governments | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost or Amortized Cost | 9,698 |
Fair Value | 9,716 |
Amounts at Which Shown in Balance Sheet | 9,716 |
Public utilities | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost or Amortized Cost | 56,808 |
Fair Value | 56,059 |
Amounts at Which Shown in Balance Sheet | 56,059 |
All other bonds | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost or Amortized Cost | 520,803 |
Fair Value | 516,044 |
Amounts at Which Shown in Balance Sheet | 516,044 |
Redeemable preferred stock | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost or Amortized Cost | 3,022 |
Fair Value | 2,749 |
Amounts at Which Shown in Balance Sheet | 2,749 |
Equity Securities [Member] | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost or Amortized Cost | 64,819 |
Fair Value | 248,361 |
Amounts at Which Shown in Balance Sheet | 248,361 |
Public utilities | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost or Amortized Cost | 4,226 |
Fair Value | 15,949 |
Amounts at Which Shown in Balance Sheet | 15,949 |
Banks, trusts and insurance companies | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost or Amortized Cost | 13,737 |
Fair Value | 101,555 |
Amounts at Which Shown in Balance Sheet | 101,555 |
Industrial, miscellaneous and all other | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost or Amortized Cost | 41,430 |
Fair Value | 125,206 |
Amounts at Which Shown in Balance Sheet | 125,206 |
Nonredeemable preferred stocks | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost or Amortized Cost | 5,426 |
Fair Value | 5,651 |
Amounts at Which Shown in Balance Sheet | 5,651 |
Mortgage loans | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost or Amortized Cost | 25,828 |
Fair Value | 26,021 |
Amounts at Which Shown in Balance Sheet | 25,782 |
Other long-term investments | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost or Amortized Cost | 37,077 |
Fair Value | 37,077 |
Amounts at Which Shown in Balance Sheet | 37,077 |
Short-term investments | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost or Amortized Cost | 175 |
Fair Value | 175 |
Amounts at Which Shown in Balance Sheet | $ 175 |
Schedule II. Condensed Financ_2
Schedule II. Condensed Financial Statements of Parent Company (Condensed Balance Sheet) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Assets | ||||
Held-to-maturity, at amortized cost (fair value $0 in 2018 and $150 in 2017) | $ 0 | $ 150 | ||
Available-for-sale, at fair value (amortized cost $150 in 2018 and $0 in 2017) | 1,749,488 | 1,535,070 | ||
Cash and cash equivalents | 64,454 | 95,562 | ||
Federal income tax receivable | 15,035 | 6,031 | ||
Accrued investment income | 15,774 | 13,841 | ||
Total assets | 2,816,698 | 4,183,431 | ||
Liabilities and stockholders' equity | ||||
Liabilities | 1,928,323 | 3,210,058 | ||
Stockholders' equity | ||||
Common stock, $0.001 par value, authorized 75,000,000 shares; 25,097,408 and 24,916,806 issued and outstanding in 2018 and 2017, respectively | 25 | 25 | ||
Additional paid-in capital | 203,350 | 196,334 | ||
Retained earnings | 715,472 | 608,700 | ||
Accumulated other comprehensive income, net of tax | (30,472) | 168,314 | ||
Total stockholders' equity | 888,375 | 973,373 | $ 941,884 | $ 878,897 |
Total liabilities and stockholders' equity | 2,816,698 | 4,183,431 | ||
United Fire Group, Inc. | ||||
Assets | ||||
Held-to-maturity, at amortized cost (fair value $0 in 2018 and $150 in 2017) | 0 | 150 | ||
Available-for-sale, at fair value (amortized cost $150 in 2018 and $0 in 2017) | 150 | 0 | ||
Investment in subsidiary | 877,893 | 967,590 | ||
Cash and cash equivalents | 9,186 | 4,537 | ||
Federal income tax receivable | 1,165 | 1,095 | ||
Accrued investment income | 1 | 1 | ||
Total assets | 888,395 | 973,373 | ||
Liabilities and stockholders' equity | ||||
Liabilities | 20 | 0 | ||
Stockholders' equity | ||||
Common stock, $0.001 par value, authorized 75,000,000 shares; 25,097,408 and 24,916,806 issued and outstanding in 2018 and 2017, respectively | 25 | 25 | ||
Additional paid-in capital | 203,350 | 196,334 | ||
Retained earnings | 715,472 | 608,700 | ||
Accumulated other comprehensive income, net of tax | (30,472) | 168,314 | ||
Total stockholders' equity | 888,375 | 973,373 | ||
Total liabilities and stockholders' equity | $ 888,395 | $ 973,373 |
Schedule II. Condensed Financ_3
Schedule II. Condensed Financial Statements of Parent Company (Condensed Balance Sheet) (Phantom) (Details) - USD ($) $ / shares in Units, $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Held-to-maturity securities | $ 0 | $ 150 |
Fixed maturities, Available-for-sale securities, amortized cost | $ 1,761,289 | $ 1,516,610 |
Common stock, par value per share (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 75,000,000 | 75,000,000 |
Common stock, shares issued (in shares) | 25,097,408 | 24,916,806 |
Common stock, shares outstanding (in shares) | 25,097,408 | 24,916,806 |
United Fire Group, Inc. | ||
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Held-to-maturity securities | $ 0 | $ 150 |
Fixed maturities, Available-for-sale securities, amortized cost | $ 150 | $ 0 |
Common stock, par value per share (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 75,000,000 | 75,000,000 |
Common stock, shares issued (in shares) | 25,097,408 | 24,916,806 |
Common stock, shares outstanding (in shares) | 25,097,408 | 24,916,806 |
Schedule II. Condensed Financ_4
Schedule II. Condensed Financial Statements of Parent Company (Condensed Statement of Income and Comprehensive Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenues | |||||||||||
Investment income | $ 52,894 | $ 51,190 | $ 55,284 | ||||||||
Total revenues | $ 252,062 | $ 291,910 | $ 275,399 | $ 250,795 | $ 273,355 | $ 269,617 | $ 258,487 | $ 251,278 | 1,070,166 | 1,052,737 | 996,362 |
Expenses | |||||||||||
Net income | 27,650 | 51,023 | 49,904 | ||||||||
Other comprehensive income (loss) | |||||||||||
Change in unrealized appreciation on investments held by subsidiary | (50,985) | 72,251 | 13,017 | ||||||||
Change in liability for underfunded employee benefit plans | 25,513 | (26,122) | 30,045 | ||||||||
Other comprehensive income (loss), before tax and reclassification adjustments | (25,472) | 46,129 | 43,062 | ||||||||
Income tax effect | 5,349 | (17,540) | (15,072) | ||||||||
Other comprehensive income (loss), after tax, before reclassification adjustments | (20,123) | 28,589 | 27,990 | ||||||||
Reclassification adjustment for net realized (gains) losses included in income | 784 | (6,390) | (4,520) | ||||||||
Reclassification adjustment for employee benefit costs included in expense | 6,642 | 5,408 | 5,486 | ||||||||
Total reclassification adjustments, before tax | 7,426 | (982) | 966 | ||||||||
Income tax effect | (1,559) | 344 | (338) | ||||||||
Comprehensive income | 13,394 | 78,974 | 78,522 | ||||||||
United Fire Group, Inc. | |||||||||||
Revenues | |||||||||||
Investment income | 396 | 133 | 66 | ||||||||
Total revenues | 396 | 133 | 66 | ||||||||
Expenses | |||||||||||
Other operating expenses | 95 | 103 | 73 | ||||||||
Total expenses | 95 | 103 | 73 | ||||||||
Income (loss) before income taxes and equity in net income of subsidiary | 301 | 30 | (7) | ||||||||
Federal income tax benefit | (1,165) | (1,060) | (3) | ||||||||
Net income (loss) before equity in net income of subsidiary | 1,466 | 1,090 | (4) | ||||||||
Equity in net income of subsidiary | 26,184 | 49,933 | 49,908 | ||||||||
Net income | 27,650 | 51,023 | 49,904 | ||||||||
Other comprehensive income (loss) | |||||||||||
Change in unrealized appreciation on investments held by subsidiary | (50,985) | 72,251 | 13,017 | ||||||||
Change in liability for underfunded employee benefit plans | 25,513 | (26,122) | 30,045 | ||||||||
Other comprehensive income (loss), before tax and reclassification adjustments | (25,472) | 46,129 | 43,062 | ||||||||
Income tax effect | 5,349 | (17,540) | (15,072) | ||||||||
Other comprehensive income (loss), after tax, before reclassification adjustments | (20,123) | 28,589 | 27,990 | ||||||||
Reclassification adjustment for net realized (gains) losses included in income | 784 | (6,390) | (4,520) | ||||||||
Reclassification adjustment for employee benefit costs included in expense | 6,642 | 5,408 | 5,486 | ||||||||
Total reclassification adjustments, before tax | 7,426 | (982) | 966 | ||||||||
Income tax effect | (1,559) | 344 | (338) | ||||||||
Total reclassification adjustments, after tax | 5,867 | (638) | 628 | ||||||||
Comprehensive income | $ 13,394 | $ 78,974 | $ 78,522 |
Schedule II. Condensed Financ_5
Schedule II. Condensed Financial Statements of Parent Company (Condensed Statement of Cash Flows) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash flows from operating activities | |||
Net income | $ 27,650 | $ 51,023 | $ 49,904 |
Adjustments to reconcile net income to net cash provided by operating activities | |||
Other, net | 9,847 | 3,378 | (9,943) |
Total adjustments | 80,542 | 125,224 | 165,266 |
Net cash provided by operating activities | 110,104 | 170,094 | 214,384 |
Cash flows from investing activities | |||
Proceeds from maturity of held-to-maturity investments | 0 | 150 | 493 |
Purchase of held-to-maturity investments | 0 | (150) | (42) |
Net cash used in investing activities | (19,204) | (61,985) | (112,403) |
Cash flows from financing activities | |||
Repurchase of common stock | (5,404) | (29,784) | (3,746) |
Issuance of common stock | 7,171 | 4,828 | 9,922 |
Tax impact from issuance of common stock | 0 | 0 | (816) |
Net cash used in financing activities | (115,188) | (107,549) | (97,577) |
Net Change in Cash and Cash Equivalents | (24,288) | 560 | 4,404 |
Cash and Cash Equivalents at Beginning of Year - Continuing Operations | 95,562 | 89,194 | 89,496 |
Cash and Cash Equivalents at End of Year - Continuing Operations | 64,454 | 95,562 | 89,194 |
United Fire Group, Inc. | |||
Cash flows from operating activities | |||
Net income | 27,650 | 51,023 | 49,904 |
Adjustments to reconcile net income to net cash provided by operating activities | |||
Equity in net income of subsidiary | (26,184) | (49,933) | (49,908) |
Dividends received from subsidiary | 105,000 | 40,000 | 24,000 |
Other, net | 1,824 | 1,415 | 2,995 |
Total adjustments | 80,640 | (8,518) | (22,913) |
Net cash provided by operating activities | 108,290 | 42,505 | 26,991 |
Cash flows from investing activities | |||
Proceeds from maturity of held-to-maturity investments | 0 | 150 | 0 |
Purchase of held-to-maturity investments | 0 | (150) | 0 |
Net cash used in investing activities | 0 | 0 | 0 |
Cash flows from financing activities | |||
Payment of cash dividends | (105,408) | (27,337) | (24,591) |
Repurchase of common stock | (5,404) | (29,784) | (3,746) |
Issuance of common stock | 7,171 | 4,828 | 9,922 |
Tax impact from issuance of common stock | 0 | 0 | (816) |
Net cash used in financing activities | (103,641) | (52,293) | (19,231) |
Net Change in Cash and Cash Equivalents | 4,649 | (9,788) | 7,760 |
Cash and Cash Equivalents at Beginning of Year - Continuing Operations | 4,537 | 14,325 | 6,565 |
Cash and Cash Equivalents at End of Year - Continuing Operations | $ 9,186 | $ 4,537 | $ 14,325 |
Schedule III. Supplementary I_2
Schedule III. Supplementary Insurance Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items] | |||
Deferred Policy Acquisition Costs | $ 92,796 | $ 159,253 | $ 164,112 |
Future Policy Benefits, Losses, Claims and Loss Expenses | 1,312,483 | 2,544,584 | 2,474,399 |
Unearned Premiums | 492,918 | 465,458 | 443,873 |
Earned Premium Revenue | 1,050,454 | 1,058,860 | 1,023,401 |
Investment Income, Net | 65,557 | 100,910 | 106,822 |
Benefits, Claims, Losses and Settlement Expenses | 747,457 | 793,796 | 743,767 |
Amortization of Deferred Policy Acquisition Costs | 208,127 | 212,927 | 211,013 |
Other Underwriting Expenses | 145,337 | 116,909 | 103,421 |
Interest on Policyholders' Accounts | 4,499 | 18,525 | 20,079 |
Premiums Written | 1,061,664 | 1,019,113 | 964,970 |
Continuing Operations - Property and Casualty Insurance | |||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items] | |||
Deferred Policy Acquisition Costs | 92,796 | 88,102 | 93,362 |
Future Policy Benefits, Losses, Claims and Loss Expenses | 1,312,483 | 1,224,183 | 1,123,896 |
Unearned Premiums | 492,918 | 465,391 | 443,802 |
Earned Premium Revenue | 1,037,451 | 997,492 | 936,131 |
Investment Income, Net | 52,894 | 51,190 | 55,284 |
Benefits, Claims, Losses and Settlement Expenses | 731,611 | 725,713 | 652,433 |
Amortization of Deferred Policy Acquisition Costs | 206,232 | 207,746 | 202,892 |
Other Underwriting Expenses | 141,473 | 103,628 | 83,540 |
Interest on Policyholders' Accounts | 0 | 0 | 0 |
Premiums Written | 1,061,664 | 1,019,113 | 964,970 |
Discontinued Operations | Discontinued Operations - Life Insurance | |||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items] | |||
Deferred Policy Acquisition Costs | 0 | 71,151 | 70,750 |
Future Policy Benefits, Losses, Claims and Loss Expenses | 0 | 1,320,401 | 1,350,503 |
Unearned Premiums | 0 | 67 | 71 |
Earned Premium Revenue | 13,003 | 61,368 | 87,270 |
Investment Income, Net | 12,663 | 49,720 | 51,538 |
Benefits, Claims, Losses and Settlement Expenses | 15,846 | 68,083 | 91,334 |
Amortization of Deferred Policy Acquisition Costs | 1,895 | 5,181 | 8,121 |
Other Underwriting Expenses | 3,864 | 13,281 | 19,881 |
Interest on Policyholders' Accounts | 4,499 | 18,525 | 20,079 |
Premiums Written | $ 0 | $ 0 | $ 0 |
Schedule IV. Reinsurance (Detai
Schedule IV. Reinsurance (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | |||
Gross Amount | $ 0 | $ 5,309,508 | $ 5,314,548 |
Ceded to Other Companies | 0 | 1,014,794 | 1,023,197 |
Assumed From Other Companies | 0 | 0 | 0 |
Net Amount | 0 | 4,294,714 | 4,291,351 |
Total [Member] | |||
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | |||
Gross Amount | 1,083,981 | 1,107,828 | 1,067,128 |
Ceded to Other Companies | 63,487 | 64,027 | 60,764 |
Assumed From Other Companies | 16,957 | 15,059 | 17,037 |
Net Amount | $ 1,037,451 | $ 1,058,860 | $ 1,023,401 |
Percentage of Amount Assumed to Net Earned | 1.63% | 1.42% | 1.66% |
Continuing Operations - Property and Casualty Insurance | |||
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | |||
Gross Amount | $ 1,083,981 | $ 1,043,738 | $ 977,090 |
Ceded to Other Companies | 63,487 | 61,305 | 57,996 |
Assumed From Other Companies | 16,957 | 15,059 | 17,037 |
Net Amount | $ 1,037,451 | $ 997,492 | $ 936,131 |
Percentage of Amount Assumed to Net Earned | 1.63% | 1.51% | 1.82% |
Discontinued Operations | Discontinued Operations - Life, accident and health insurance | |||
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | |||
Gross Amount | $ 0 | $ 64,090 | $ 90,038 |
Ceded to Other Companies | 0 | 2,722 | 2,768 |
Assumed From Other Companies | 0 | 0 | 0 |
Net Amount | $ 0 | $ 61,368 | $ 87,270 |
Percentage of Amount Assumed to Net Earned | 0.00% | 0.00% | 0.00% |
Schedule V. Valuation and Qua_2
Schedule V. Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Allowance for bad debts | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of period | $ 1,255 | $ 1,255 | $ 867 |
Charged to costs and expenses | 0 | 0 | 388 |
Deductions | 470 | 0 | 0 |
Balance at end of period | 785 | 1,255 | 1,255 |
Deferred tax asset valuation allowance | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of period | 329 | 718 | 1,265 |
Charged to costs and expenses | 0 | 0 | 0 |
Deductions | 329 | 389 | 547 |
Balance at end of period | $ 0 | $ 329 | $ 718 |
Schedule VI. Supplemental Inf_2
Schedule VI. Supplemental Information Concerning Property and Casualty Insurance Operations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
SEC Schedule, 12-18, Supplemental Information, Property-Casualty Insurance Underwriters [Line Items] | |||
Net realized investment gains | $ (20,179) | $ 4,055 | $ 4,947 |
Claims and Claim Adjustment Expenses Incurred Related to: Current Year | 785,778 | 779,966 | 683,662 |
Claims and Claim Adjustment Expenses Incurred Related to: Prior Years | (54,167) | (54,253) | (31,229) |
Consolidated Property and Casualty Insurance Entity | |||
SEC Schedule, 12-18, Supplemental Information, Property-Casualty Insurance Underwriters [Line Items] | |||
Deferred Policy Acquisition Costs | 92,796 | 88,102 | 93,362 |
Reserves for Unpaid Claims and Claim Adjustment Expenses | 1,312,483 | 1,224,183 | 1,123,896 |
Unearned Premiums | 492,918 | 465,391 | 443,802 |
Earned Premiums | 1,037,451 | 997,492 | 936,131 |
Net realized investment gains | (20,179) | 4,055 | 4,947 |
Net Investment Income | 52,894 | 51,190 | 55,284 |
Claims and Claim Adjustment Expenses Incurred Related to: Current Year | 785,778 | 779,966 | 683,662 |
Claims and Claim Adjustment Expenses Incurred Related to: Prior Years | (54,167) | (54,253) | (31,229) |
Amortization of Deferred Policy Acquisition Costs | 206,232 | 207,746 | 202,892 |
Paid Claims and Claim Adjustment Expenses | 640,534 | 625,503 | 537,573 |
Premiums Written | $ 1,061,664 | $ 1,019,113 | $ 964,970 |
Uncategorized Items - ufcs-2018
Label | Element | Value |
Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 191,244,000 |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 0 |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 0 |