Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Feb. 16, 2015 | Jun. 30, 2014 |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | AMSF | ||
Entity Registrant Name | AMERISAFE INC | ||
Entity Central Index Key | 1018979 | ||
Current Fiscal Year End Date | -19 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 18,920,186 | ||
Entity Public Float | $750.30 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Investments: | ||
Fixed maturity securities-held-to-maturity, at amortized cost (fair value $664,371 and $561,179 in 2014 and 2013, respectively) | $639,631 | $536,583 |
Fixed maturity securities-available-for-sale, at fair value (cost $327,004 and $244,409 in 2014 and 2013, respectively) | 331,242 | 237,877 |
Equity securities-available-for-sale, at fair value (cost $0 and $9,482 in 2014 and 2013, respectively) | 28 | 9,302 |
Short-term investments | 33,684 | 84,422 |
Other investments | 11,748 | 10,591 |
Total investments | 1,016,333 | 878,775 |
Cash and cash equivalents | 90,956 | 123,077 |
Amounts recoverable from reinsurers | 85,888 | 75,326 |
Premiums receivable, net of allowance | 178,917 | 171,579 |
Deferred income taxes | 31,231 | 33,645 |
Accrued interest receivable | 11,637 | 11,242 |
Property and equipment, net | 7,240 | 7,549 |
Deferred policy acquisition costs | 19,649 | 19,171 |
Federal income tax recoverable | 1,082 | |
Other assets | 14,287 | 8,637 |
Total assets | 1,457,220 | 1,329,001 |
Liabilities: | ||
Reserves for loss and loss adjustment expenses | 687,602 | 614,557 |
Unearned premiums | 168,576 | 164,296 |
Reinsurance premiums payable | 843 | 607 |
Amounts held for others | 42,827 | 35,739 |
Policyholder deposits | 48,722 | 44,620 |
Insurance-related assessments | 29,315 | 25,428 |
Accounts payable and other liabilities | 30,110 | 26,940 |
Payable for investments purchased | 2,257 | |
Total liabilities | 1,010,252 | 912,187 |
Shareholders' equity: | ||
Voting-$0.01 par value authorized shares-50,000,000 in 2014 and 2013; 20,155,936 and 19,855,430 shares issued and 18,897,686 and 18,597,180 shares outstanding in 2014 and 2013, respectively | 201 | 198 |
Additional paid-in capital | 199,138 | 192,537 |
Treasury stock at cost (1,258,250 shares in 2014 and 2013) | -22,370 | -22,370 |
Accumulated earnings | 267,189 | 250,744 |
Accumulated other comprehensive income (loss), net | 2,810 | -4,295 |
Total shareholders' equity | 446,968 | 416,814 |
Total liabilities and shareholders' equity | $1,457,220 | $1,329,001 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ||
Fixed maturity securities, fair value | $664,371 | $561,179 |
Fixed maturity securities, cost | 327,004 | 244,409 |
Equity securities, cost | $0 | $9,482 |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 20,155,936 | 19,855,430 |
Common stock, shares outstanding | 18,897,686 | 18,597,180 |
Treasury stock, shares | 1,258,250 | 1,258,250 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenues | |||
Premiums earned | $375,747 | $329,983 | $290,689 |
Net investment income | 27,214 | 27,029 | 27,018 |
Net realized gains (losses) on investments | 697 | -1,211 | 2,979 |
Fee and other income | 361 | 534 | 562 |
Total revenues | 404,019 | 356,335 | 321,248 |
Expenses | |||
Loss and loss adjustment expenses incurred | 244,916 | 228,973 | 219,903 |
Underwriting and certain other operating costs | 32,573 | 18,951 | 18,450 |
Commissions | 27,872 | 25,303 | 22,144 |
Salaries and benefits | 24,518 | 22,862 | 20,839 |
Interest expense | 566 | ||
Policyholder dividends | 391 | 1,042 | 2,203 |
Total expenses | 330,270 | 297,131 | 284,105 |
Income before income taxes | 73,749 | 59,204 | 37,143 |
Income tax expense | 20,083 | 15,567 | 7,790 |
Net income | 53,666 | 43,637 | 29,353 |
Net income available to common shareholders | $53,666 | $43,495 | $29,331 |
Earnings per share | |||
Basic | $2.88 | $2.37 | $1.62 |
Diluted | $2.84 | $2.32 | $1.58 |
Shares used in computing earnings per share | |||
Basic | 18,646,128 | 18,373,033 | 18,166,261 |
Diluted | 18,928,504 | 18,748,809 | 18,575,191 |
Extraordinary cash dividends declared per common share | $1.50 | $0 | |
Cash dividends declared per common share | $0.48 | $0.32 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Statement of Comprehensive Income [Abstract] | |||||||||||
Net income | $16,865 | $13,479 | $12,773 | $10,549 | $17,443 | $9,699 | $7,644 | $8,851 | $53,666 | $43,637 | $29,353 |
Other comprehensive income: | |||||||||||
Unrealized gain (loss) on securities, net of tax | 7,105 | -7,274 | 764 | ||||||||
Comprehensive income | $17,597 | $13,596 | $15,789 | $13,789 | $15,819 | $8,654 | $3,584 | $8,306 | $60,771 | $36,363 | $30,117 |
Consolidated_Statements_of_Cha
Consolidated Statements of Changes in Shareholders' Equity (USD $) | Total | Common Stock [Member] | Treasury Stock [Member] | Additional Paid-In Capital [Member] | Accumulated Earnings [Member] | Accumulated Other Comprehensive Loss [Member] |
In Thousands, except Share data, unless otherwise specified | ||||||
Beginning Balance at Dec. 31, 2011 | $349,437 | $194 | ($22,370) | $185,734 | $183,664 | $2,215 |
Beginning Balance, Shares at Dec. 31, 2011 | 19,408,512 | -1,258,250 | ||||
Comprehensive income: | ||||||
Net income | 29,353 | 29,353 | ||||
Other comprehensive income: | ||||||
Change in unrealized gains, net of tax | 764 | 764 | ||||
Comprehensive income | 30,117 | |||||
Common stock issued upon exercise of options | 781 | 1 | 780 | |||
Common stock issued upon exercise of options, Shares | 86,800 | 86,800 | ||||
Restricted common stock issued | 240 | 240 | ||||
Restricted common stock issued, Shares | 18,164 | |||||
Share-based compensation | 226 | 226 | ||||
Tax benefit of share-based compensation | 421 | 421 | ||||
Ending Balance at Dec. 31, 2012 | 381,222 | 195 | -22,370 | 187,401 | 213,017 | 2,979 |
Ending Balance, Shares at Dec. 31, 2012 | 19,513,476 | -1,258,250 | ||||
Comprehensive income: | ||||||
Net income | 43,637 | 43,637 | ||||
Other comprehensive income: | ||||||
Change in unrealized gains, net of tax | -7,274 | -7,274 | ||||
Comprehensive income | 36,363 | |||||
Common stock issued upon exercise of options | 2,344 | 3 | 2,341 | |||
Common stock issued upon exercise of options, Shares | 256,300 | 256,300 | ||||
Restricted common stock issued | 557 | 557 | ||||
Restricted common stock issued, Shares | 85,654 | |||||
Share-based compensation | 214 | 214 | ||||
Tax benefit of share-based compensation | 2,024 | 2,024 | ||||
Dividends to shareholders | -5,910 | -5,910 | ||||
Ending Balance at Dec. 31, 2013 | 416,814 | 198 | -22,370 | 192,537 | 250,744 | -4,295 |
Ending Balance, Shares at Dec. 31, 2013 | 18,597,180 | 19,855,430 | -1,258,250 | |||
Comprehensive income: | ||||||
Net income | 53,666 | 53,666 | ||||
Other comprehensive income: | ||||||
Change in unrealized gains, net of tax | 7,105 | 7,105 | ||||
Comprehensive income | 60,771 | |||||
Common stock issued upon exercise of options | 2,674 | 3 | 2,671 | |||
Common stock issued upon exercise of options, Shares | 294,165 | 294,165 | ||||
Restricted common stock issued, Shares | 6,341 | |||||
Share-based compensation | 1,089 | 1,089 | ||||
Tax benefit of share-based compensation | 2,841 | 2,841 | ||||
Dividends to shareholders | -37,221 | -37,221 | ||||
Ending Balance at Dec. 31, 2014 | $446,968 | $201 | ($22,370) | $199,138 | $267,189 | $2,810 |
Ending Balance, Shares at Dec. 31, 2014 | 18,897,686 | 20,155,936 | -1,258,250 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Operating activities | |||
Net income | $53,666 | $43,637 | $29,353 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation | 1,298 | 1,300 | 1,112 |
Net amortization/accretion of investments | 15,243 | 13,350 | 10,151 |
Deferred income taxes | -1,412 | -207 | 115 |
Net realized (gains) losses on investments | -697 | 1,211 | -2,979 |
Loss on sale of asset | 2 | 1 | |
Share-based compensation | 1,519 | 1,409 | 641 |
Changes in operating assets and liabilities: | |||
Premiums receivable, net | -7,338 | -29,629 | -20,727 |
Accrued interest receivable | -395 | -850 | -872 |
Deferred policy acquisition costs | -478 | -752 | -1,841 |
Other assets | -7,889 | 1,581 | 445 |
Reserve for loss and loss adjustment expenses | 73,045 | 44,107 | 32,236 |
Unearned premiums | 4,280 | 23,768 | 21,829 |
Reinsurance balances | -10,326 | 26,177 | -5,910 |
Amounts held for others and policyholder deposits | 11,190 | 238 | 12,912 |
Accounts payable and other liabilities | 8,734 | 3,561 | 4,582 |
Net cash provided by operating activities | 140,440 | 128,903 | 81,048 |
Investing activities | |||
Purchases of investments held-to-maturity | -225,285 | -77,868 | -79,042 |
Purchases of investments available-for-sale | -149,956 | -135,798 | -92,751 |
Purchases of short-term investments | -79,957 | -131,981 | -95,954 |
Purchases of other invested assets | -10,000 | ||
Proceeds from maturities of investments held-to-maturity | 114,601 | 117,750 | 134,994 |
Proceeds from sales and maturities of investments available-for-sale | 72,535 | 29,099 | 52,514 |
Proceeds from sales and maturities of short-term investments | 128,043 | 112,978 | 72,105 |
Purchases of property and equipment | -989 | -1,140 | -1,196 |
Net cash used in investing activities | -141,008 | -96,960 | -9,330 |
Financing activities | |||
Proceeds from stock option exercises | 2,674 | 2,344 | 781 |
Tax benefit from share-based payments | 2,841 | 2,024 | 421 |
Redemption of subordinated debt securities | -25,780 | ||
Dividends to shareholders | -37,068 | -5,910 | |
Net cash used in financing activities | -31,553 | -1,542 | -24,578 |
Change in cash and cash equivalents | -32,121 | 30,401 | 47,140 |
Cash and cash equivalents at beginning of year | 123,077 | 92,676 | 45,536 |
Cash and cash equivalents at end of year | 90,956 | 123,077 | 92,676 |
Supplemental disclosure of cash flow information | |||
Interest paid | 686 | ||
Income taxes paid | $19,926 | $12,512 | $7,004 |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | |
Dec. 31, 2014 | ||
Accounting Policies [Abstract] | ||
Summary of Significant Accounting Policies | 1 | Summary of Significant Accounting Policies |
Organization | ||
AMERISAFE, Inc. is an insurance holding company incorporated in the state of Texas. The accompanying consolidated financial statements include the accounts of AMERISAFE and its subsidiaries: American Interstate Insurance Company (“AIIC”) and its insurance subsidiaries, Silver Oak Casualty, Inc. (“SOCI”) and American Interstate Insurance Company of Texas (“AIICTX”), Amerisafe Risk Services, Inc. (“RISK”) and Amerisafe General Agency, Inc. (“AGAI”). AIIC and SOCI are property and casualty insurance companies organized under the laws of the state of Nebraska. In 2013, AIIC and SOCI were re-domesticated to Nebraska from Louisiana. AIICTX is a property and casualty insurance company organized under the laws of the state of Texas. RISK, a wholly owned subsidiary of the Company, is a claims and safety service company servicing only affiliated insurance companies. AGAI, a wholly owned subsidiary of the Company, is a general agent for the Company. AGAI sells insurance, which is underwritten by AIIC, SOCI and AIICTX, as well as by nonaffiliated insurance carriers. The assets and operations of AGAI are not significant to that of the consolidated entity. | ||
The terms “AMERISAFE,” the “Company,” “we,” “us” or “our” refer to AMERISAFE, Inc. and its consolidated subsidiaries, as the context requires. | ||
The Company provides workers’ compensation insurance for companies primarily in special trade groups, including construction, trucking, manufacturing, oil and gas and agriculture. Assets and revenues of AIIC represent at least 95% of comparable consolidated amounts of the Company for each of 2014, 2013 and 2012. | ||
Basis of Presentation | ||
The accompanying consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”). The preparation of financial statements in accordance 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. | ||
Reclassifications | ||
Certain prior year amounts have been reclassified to conform with the current year presentation. | ||
Investments | ||
The Company has the ability and positive intent to hold certain investments until maturity. Therefore, fixed maturity securities classified as held-to-maturity are recorded at amortized cost. Equity securities and fixed maturity securities classified as available-for-sale are recorded at fair value. Temporary changes in the fair value of these securities are reported in shareholders’ equity as a component of other comprehensive income, net of deferred income taxes. | ||
Investment income is recognized as it is earned. The discount or premium on fixed maturity securities is amortized using the “constant yield” method. Anticipated prepayments, where applicable, are considered when determining the amortization of premiums or discounts. Realized investment gains and losses are determined using the specific identification method. | ||
The Company regularly reviews the fair value of its investments. Impairment of an investment security results in a reduction of the carrying value of the security and the realization of a loss when the fair value of the security declines below the cost or amortized cost, as applicable, for the security and the impairment is deemed to be other-than-temporary. The Company regularly reviews its investment portfolio to evaluate the existence of other-than-temporary declines in the fair value of investments. The Company considers various factors in determining if a decline in the fair value of an individual security is other-than-temporary, including but not limited to a reduction or interruption in scheduled cash flows, the financial condition of the issuer, how long and by how much the fair value has been below amortized cost, losses due to credit concerns, downgrades and the Company’s intent to sell or ability to hold the security. | ||
Other-than-temporary impairment losses on equity securities are recognized in net income and are measured as the difference between cost and fair value. Impairment losses on fixed maturities are recognized in the financial statements depending on the facts and circumstances related to the specific security. If we intend to sell a security or it is more likely than not that we would be required to sell a security before the recovery of its amortized cost, less any current period credit loss, an other-than-temporary impairment | ||
would be recognized in net income for the difference between amortized cost and fair value. If we do not expect to recover the amortized cost basis, we do not plan to sell the security and if it is not more likely than not that we would be required to sell a security before the recovery of its amortized cost, less any current period credit loss, the recognition of the other-than-temporary impairment is bifurcated. The credit loss portion would be recognized in net income and the noncredit loss portion in other comprehensive income. | ||
Cash and Cash Equivalents | ||
Cash equivalents include short-term money market funds and corporate bonds with an original maturity of three months or less. | ||
Short-Term Investments | ||
Short-term investments include municipal securities, corporate bonds and certificates of deposit with an original maturity greater than three months but less than one year. | ||
Other Investments | ||
Other investments consist of a limited partnership (“LP”) interest that is accounted for under the equity method valued using the net asset value provided by the general partner of the LP, which approximates the fair value of the interest. The LP’s objective is to generate absolute returns by investing long and short in publicly-traded global securities. Redemptions are allowed monthly following a sixty day notice with no lock up periods. The Company has no unfunded commitments related to the LP. | ||
Premiums Receivable | ||
Premiums receivable consist primarily of premium-related balances due from policyholders. The Company considers premiums receivable as past due based on the payment terms of the underlying policy. The balance is shown net of the allowance for doubtful accounts. Receivables due from insureds are charged off when a determination has been made by management that a specific balance will not be collected. An estimate of amounts that are likely to be charged off is established as an allowance for doubtful accounts as of the balance sheet date. The estimate is primarily comprised of specific balances that are considered probable to be charged off after all collection efforts have ceased, as well as historical trends and an analysis of the aging of the receivables. | ||
Property and Equipment | ||
The Company’s property and equipment, including certain costs incurred to develop or obtain software for internal use, are stated at cost less accumulated depreciation. Depreciation is calculated primarily by the straight-line method over the estimated useful lives of the respective assets, generally 39 years for buildings and three to seven years for all other fixed assets. | ||
Deferred Policy Acquisition Costs | ||
The direct costs of successfully acquiring and renewing business are capitalized to the extent recoverable and are amortized over the effective period of the related insurance policies in proportion to premium revenue earned. These capitalized costs consist mainly of sales commissions, premium taxes and other underwriting costs. The Company evaluates deferred policy acquisition costs for recoverability by comparing the unearned premiums to the estimated total expected claim costs and related expenses, offset by anticipated investment income. The Company would reduce the deferred costs if the unearned premiums were less than expected claims and expenses after considering investment income, and report any adjustments in amortization of deferred policy acquisition costs. There were no adjustments necessary in 2014, 2013 or 2012. | ||
Reserves for Loss and Loss Adjustment Expenses | ||
Reserves for loss and loss adjustment expenses represent the estimated ultimate cost of all reported and unreported losses incurred through December 31. The Company does not discount loss and loss adjustment expense reserves. The reserves for loss and loss adjustment expenses are estimated using individual case-basis valuations, statistical analyses and estimates based upon experience for unreported claims and their associated loss and loss adjustment expenses. Such estimates may be more or less than the amounts ultimately paid when the claims are settled. The estimates are subject to the effects of trends in loss severity and frequency. Although considerable variability is inherent in these estimates, management believes that the reserves for loss and loss adjustment expenses are adequate. The estimates are continually reviewed and adjusted as necessary as experience develops or new information becomes known. Any adjustments are included in current operations. | ||
Subrogation recoverables, as well as deductible recoverables from policyholders, are estimated using individual case-basis valuations and aggregate estimates. Deductibles that are recoverable from policyholders and other recoverables from state funds decrease the liability for loss and loss adjustment expenses. | ||
The Company funds its obligations under certain settled claims where the payment pattern and ultimate cost are fixed and determinable on an individual claim basis through the purchase of annuities. These annuities are purchased from unaffiliated carriers | ||
and name the claimant as payee. The cost of purchasing the annuity is recorded as paid loss and loss adjustment expenses. To the extent the annuity funds estimated future claims, reserves for loss and loss adjustment expense are reduced. | ||
Premium Revenue | ||
Premiums on workers’ compensation insurance are based on actual payroll costs or production during the policy term and are normally billed monthly in arrears or annually. However, the Company generally requires a deposit at the inception of a policy. | ||
Premium revenue is earned on a pro rata basis over periods covered by the policies. The reserve for unearned premiums on these policies is computed on a daily pro rata basis. | ||
The Company estimates the annual premiums to be paid by its policyholders when the Company issues the policies and records those amounts on the balance sheet as premiums receivable. The Company conducts premium audits on all of its voluntary business policyholders annually, upon the expiration of each policy, including when the policy is renewed. The purpose of these audits is to verify that policyholders have accurately reported their payroll expenses and employee job classifications, and therefore have paid the Company the premium required under the terms of the policies. The difference between the estimated premium and the ultimate premium is referred to as “earned but unbilled” premium, or EBUB premium. EBUB premium can be higher or lower than the estimated premium. EBUB premium is subject to significant variability and can either increase or decrease earned premium based upon several factors, including changes in premium growth, industry mix and economic conditions. Due to the timing of audits and other adjustments, ultimate premium earned is generally not determined for several months after the expiration of the policy. | ||
The Company estimates EBUB premiums on a quarterly basis using historical data and applying various assumptions based on the current market and records an adjustment to premium, related losses, and expenses as warranted. | ||
Reinsurance | ||
Reinsurance premiums, losses and allocated loss adjustment expenses are accounted for on a basis consistent with those used in accounting for the original policies issued and the terms of the reinsurance contracts. | ||
Amounts recoverable from reinsurers include balances currently owed to the Company for losses and allocated loss adjustment expenses that have been paid to policyholders, amounts that are currently reserved for and will be recoverable once the related expense has been paid and experience-rated commissions recoverable upon commutation. | ||
Upon management’s determination that an amount due from a reinsurer is uncollectible due to the reinsurer’s insolvency or other matters, the amount is written off. | ||
Ceding commissions are earned from certain reinsurance companies and are intended to reimburse the Company for policy acquisition costs related to those premiums ceded to the reinsurers. Ceding commission income is recognized over the effective period of the related insurance policies in proportion to premium revenue earned and is reflected as a reduction in underwriting and certain other operating costs. | ||
Experience-rated commissions are earned from certain reinsurance companies based on the financial results of the applicable risks ceded to the reinsurers. These commission revenues on reinsurance contracts are recognized during the related reinsurance treaty period and are based on the same assumptions used for recording loss and allocated loss adjustment expenses. These commissions are reflected as a reduction in underwriting and certain other operating costs and are adjusted as necessary as experience develops or new information becomes known. Any such adjustments are included in current operations. Experience-rated commissions had no impact on underwriting and certain other operating costs in 2014 compared to a reduction of $9.3 million in 2013 and $11.1million in 2012. | ||
Fee and Other Income | ||
The Company recognizes income related to commissions earned by AGAI as the related services are performed. | ||
Advertising | ||
All advertising expenditures incurred by the Company are charged to expense in the period to which they relate and are included in underwriting and certain other operating costs in the consolidated statements of income. Total advertising expenses incurred were $0.5 million in 2014, $0.5 million in 2013 and $0.4 million in 2012. | ||
Income Taxes | ||
The Company accounts for income taxes using the liability method. The provision for income taxes has two components, amounts currently payable or receivable and deferred amounts. Deferred income tax assets and liabilities are recognized for the differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred income tax assets and liabilities are measured using tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred income tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. | ||
The Company considers deferred tax assets to be recoverable if it is probable that the related tax losses can be offset by future taxable income. The Company includes reversal of existing temporary differences, tax planning strategies available and future operating income in this assessment. To the extent the deferred tax assets exceed the amount expected to be recovered in future years, the Company records a valuation allowance for the amount determined unrecoverable. | ||
Insurance-Related Assessments | ||
Insurance-related assessments are accrued in the period in which they have been incurred. The Company is subject to a variety of assessments related to insurance commerce, including those by state guaranty funds and workers’ compensation second-injury funds. State guaranty fund assessments are used by state insurance oversight agencies to cover losses of policyholders of insolvent or rehabilitated insurance companies and for the operating expenses of such agencies. The Company has a premium tax benefit accrued of $4.0 million and $3.6 million as of December 31, 2014 and 2013, respectively, for mandatory assessments that may be recovered through a reduction in future premium taxes in certain states. Assessments based on premiums are generally paid one year after the calendar year in which the premium is written, while assessments based on losses are generally paid within one year of the calendar year in which the loss is paid. | ||
Policyholder Dividends | ||
The Company writes certain policies for which the policyholder may participate in favorable claims experience through a dividend. An estimated provision for workers’ compensation policyholders’ dividends is accrued as the related premiums are earned. Dividends do not become a fixed liability unless and until declared by the respective Boards of Directors of AMERISAFE’s insurance subsidiaries. The dividend to which a policyholder may be entitled is set forth in the policy and is related to the amount of losses sustained under the policy. Dividends are calculated after the policy expiration. The Company is able to estimate the policyholder dividend liability because the Company has information regarding the underlying loss experience of the policies written with dividend provisions and can estimate future dividend payments from the policy terms. | ||
Earnings Per Share | ||
The Company computes earnings per share (EPS) in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 260, Earnings Per Share. Additionally, during 2013, the Company applied the “two-class method” in computing basic and diluted earnings per share as a result of the participating unvested common shares which contained nonforfeitable rights to dividends during this period. As of January 1, 2014, the Company no longer has participating unvested common shares which contain nonforfeitable rights to dividends and now applies the treasury stock method in computing basic and diluted earnings per share. | ||
Under the two-class method, net income available to common and participating common shareholders is reduced by the amount of dividends declared in the current period and by the contractual amount of dividends that must be paid for the current period related to the Company’s common and participating common shares. Participating common shares include unvested share-based payment awards that contain nonforfeitable rights to dividends, whether paid or unpaid. Any remaining undistributed earnings are allocated to the common and participating common shareholders to the extent that each security shares in earnings as if all of the earnings for the period had been distributed. The amount of earnings allocable to each security is divided by the number of outstanding shares of the security to which the earnings are allocated to determine the EPS for the security. In a period of loss, no losses are allocated to the participating common shareholders. Instead, all such losses are allocated to the common shareholders. | ||
Basic EPS is calculated by dividing income available to common shareholders by the weighted-average number of common shares outstanding during the period. The diluted EPS calculation includes potential common shares assumed issued under the treasury stock method, which reflects the potential dilution that would occur if any outstanding options or warrants were exercised or restricted stock becomes vested, and includes the “if converted” method for participating securities if the effect is dilutive. We determine diluted EPS as the more dilutive result of either the treasury method or the two-class method. | ||
Share-Based Compensation | ||
The Company recognizes the impact of its share-based compensation in accordance with FASB ASC Topic 718, Compensation-Stock Compensation. All share-based grants are recognized as compensation expense over the vesting period. The target value of long-term incentive awards are recognized as compensation over the performance period. |
Investments
Investments | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||
Investments | 2 | Investments | |||||||||||||||||||||||
Short-term investments held at December 31, 2014 include $32.7 million of corporate bonds and certificates of deposit of $1.0 million. Short-term investments held at December 31, 2013 include $82.7 million of corporate bonds, certificates of deposits of $0.9 million and $0.8 million of municipal securities. All certificates of deposits are fully insured by the Federal Deposit Insurance Corporation. | |||||||||||||||||||||||||
Amerisafe holds investments in a LP, accounted for under the equity method. The carrying value of this investment is $11.7 million at December 31, 2014. | |||||||||||||||||||||||||
The gross unrealized gains and losses on, and the amortized cost and fair value of, those investments classified as held-to-maturity at December 31, 2014 are summarized as follows: | |||||||||||||||||||||||||
Amortized | Gross | Gross | Fair Value | ||||||||||||||||||||||
Cost | Unrealized | Unrealized | |||||||||||||||||||||||
Gains | Losses | ||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
States and political subdivisions | $ | 385,623 | $ | 20,100 | $ | (58) | $ | 405,665 | |||||||||||||||||
Corporate bonds | 176,880 | 374 | (520) | 176,734 | |||||||||||||||||||||
Commercial mortgage-backed securities | 46,662 | 1,867 | — | 48,529 | |||||||||||||||||||||
U.S. agency-based mortgage-backed securities | 16,972 | 1,702 | (2) | 18,672 | |||||||||||||||||||||
U.S. Treasury securities and obligations of U.S. Government agencies | 10,697 | 1,097 | (2) | 11,792 | |||||||||||||||||||||
Asset-backed securities | 2,797 | 264 | (82) | 2,979 | |||||||||||||||||||||
Totals | $ | 639,631 | $ | 25,404 | $ | (664) | $ | 664,371 | |||||||||||||||||
The gross unrealized gains and losses on, and the cost or amortized cost and fair value of, those investments classified as available-for-sale at December 31, 2014 are summarized as follows: | |||||||||||||||||||||||||
Cost or | Gross | Gross | Fair Value | ||||||||||||||||||||||
Amortized | Unrealized | Unrealized | |||||||||||||||||||||||
Cost | Gains | Losses | |||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
Fixed maturity: | |||||||||||||||||||||||||
States and political subdivisions | $ | 151,744 | $ | 7,302 | $ | (1,672) | $ | 157,374 | |||||||||||||||||
Corporate bonds | 165,412 | 428 | (470) | 165,370 | |||||||||||||||||||||
U.S. agency-based mortgage-backed securities | 9,848 | 2 | (1,352) | 8,498 | |||||||||||||||||||||
Total fixed maturity | 327,004 | 7,732 | (3,494) | 331,242 | |||||||||||||||||||||
Other investments | 10,000 | 1,748 | — | 11,748 | |||||||||||||||||||||
Equity securities | — | 28 | — | 28 | |||||||||||||||||||||
Totals | $ | 337,004 | $ | 9,508 | $ | (3,494) | $ | 343,018 | |||||||||||||||||
The gross unrealized gains and losses on, and the amortized cost and fair value of, those investments classified as held-to-maturity at December 31, 2013 are summarized as follows: | |||||||||||||||||||||||||
Amortized | Gross | Gross | Fair Value | ||||||||||||||||||||||
Cost | Unrealized | Unrealized | |||||||||||||||||||||||
Gains | Losses | ||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
States and political subdivisions | $ | 381,674 | $ | 18,634 | $ | (1,153) | $ | 399,155 | |||||||||||||||||
Corporate bonds | 67,423 | 861 | (41) | 68,243 | |||||||||||||||||||||
Commercial mortgage-backed securities | 50,813 | 3,431 | — | 54,244 | |||||||||||||||||||||
U.S. agency-based mortgage-backed securities | 21,775 | 1,790 | — | 23,565 | |||||||||||||||||||||
U.S. Treasury securities and obligations of U.S. Government agencies | 11,514 | 1,002 | — | 12,516 | |||||||||||||||||||||
Asset-backed securities | 3,384 | 216 | (144) | 3,456 | |||||||||||||||||||||
Totals | $ | 536,583 | $ | 25,934 | $ | (1,338) | $ | 561,179 | |||||||||||||||||
The gross unrealized gains and losses on, and the cost or amortized cost and fair value of, those investments classified as available-for-sale at December 31, 2013 are summarized as follows: | |||||||||||||||||||||||||
Cost or | Gross | Gross | Fair Value | ||||||||||||||||||||||
Amortized | Unrealized | Unrealized | |||||||||||||||||||||||
Cost | Gains | Losses | |||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
Fixed maturity: | |||||||||||||||||||||||||
States and political subdivisions | $ | 154,024 | $ | 1,491 | $ | (5,140) | $ | 150,375 | |||||||||||||||||
Corporate bonds | 80,344 | 445 | (361) | 80,428 | |||||||||||||||||||||
U.S. agency-based mortgage-backed securities | 10,041 | — | (2,967) | 7,074 | |||||||||||||||||||||
Total fixed maturity | 244,409 | 1,936 | (8,468) | 237,877 | |||||||||||||||||||||
Other investments | 10,000 | 591 | — | 10,591 | |||||||||||||||||||||
Equity securities | 9,482 | 387 | (567) | 9,302 | |||||||||||||||||||||
Totals | $ | 263,891 | $ | 2,914 | $ | (9,035) | $ | 257,770 | |||||||||||||||||
A summary of the amortized cost and fair value of investments in fixed maturity securities, classified as held-to-maturity at December 31, 2014, by contractual maturity, is as follows: | |||||||||||||||||||||||||
Amortized | Fair Value | ||||||||||||||||||||||||
Cost | |||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
Maturity: | |||||||||||||||||||||||||
Within one year | $ | 120,896 | $ | 121,909 | |||||||||||||||||||||
After one year through five years | 262,486 | 271,332 | |||||||||||||||||||||||
After five years through ten years | 102,703 | 110,139 | |||||||||||||||||||||||
After ten years | 87,115 | 90,811 | |||||||||||||||||||||||
U.S. agency-based mortgage-backed securities | 16,972 | 18,672 | |||||||||||||||||||||||
Commercial mortgage-backed securities | 46,662 | 48,529 | |||||||||||||||||||||||
Asset-backed securities | 2,797 | 2,979 | |||||||||||||||||||||||
Totals | $ | 639,631 | $ | 664,371 | |||||||||||||||||||||
A summary of the amortized cost and fair value of investments in fixed maturity securities, classified as available-for-sale at December 31, 2014, by contractual maturity, is as follows: | |||||||||||||||||||||||||
Amortized | Fair Value | ||||||||||||||||||||||||
Cost | |||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
Maturity: | |||||||||||||||||||||||||
Within one year | $ | 51,403 | $ | 51,448 | |||||||||||||||||||||
After one year through five years | 127,842 | 128,060 | |||||||||||||||||||||||
After five years through ten years | 10,056 | 10,275 | |||||||||||||||||||||||
After ten years | 127,855 | 132,961 | |||||||||||||||||||||||
U.S. agency-based mortgage-backed securities | 9,848 | 8,498 | |||||||||||||||||||||||
Totals | $ | 327,004 | $ | 331,242 | |||||||||||||||||||||
Actual maturities may differ from contractual maturities because certain borrowers have the right to call or prepay certain obligations with or without call or prepayment penalties. | |||||||||||||||||||||||||
At December 31, 2014, there were $19.8 million of held-to-maturity investments on deposit with regulatory agencies of states in which the Company does business. | |||||||||||||||||||||||||
A summary of the Company’s realized gains and losses on sales, calls or redemptions of investments for 2014, 2013 and 2012 is as follows: | |||||||||||||||||||||||||
Fixed | Equity | Other | Total | ||||||||||||||||||||||
Maturity | Securities | ||||||||||||||||||||||||
Securities | |||||||||||||||||||||||||
Available | |||||||||||||||||||||||||
for Sale | |||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
Year ended December 31, 2014 | |||||||||||||||||||||||||
Proceeds from sales | $ | 768 | $ | 9,780 | $ | — | $ | 10,548 | |||||||||||||||||
Gross realized investment gains | $ | 1 | $ | 749 | $ | — | $ | 750 | |||||||||||||||||
Gross realized investment (losses) | — | (451 | ) | — | (451 | ) | |||||||||||||||||||
Net realized investment gains | 1 | 298 | — | 299 | |||||||||||||||||||||
Impairments | (222 | ) | — | — | (222 | ) | |||||||||||||||||||
Other, including gains on calls and redemptions | 244 | — | 376 | 620 | |||||||||||||||||||||
Net realized investment gains | $ | 23 | $ | 298 | $ | 376 | $ | 697 | |||||||||||||||||
Year ended December 31, 2013 | |||||||||||||||||||||||||
Proceeds from sales | $ | 2,090 | $ | 8,900 | $ | — | $ | 10,990 | |||||||||||||||||
Gross realized investment gains | $ | 90 | $ | 1,264 | $ | — | $ | 1,354 | |||||||||||||||||
Gross realized investment (losses) | — | (471 | ) | — | (471 | ) | |||||||||||||||||||
Net realized investment gains | 90 | 793 | — | 883 | |||||||||||||||||||||
Impairments | — | (2,229 | ) | — | (2,229 | ) | |||||||||||||||||||
Other, including gains on calls and redemptions | 38 | — | 97 | 135 | |||||||||||||||||||||
Net realized investment gains (losses) | $ | 128 | $ | (1,436 | ) | $ | 97 | $ | (1,211 | ) | |||||||||||||||
Year ended December 31, 2012 | |||||||||||||||||||||||||
Proceeds from sales | $ | 22,363 | $ | 10,777 | $ | — | $ | 33,140 | |||||||||||||||||
Gross realized investment gains | $ | 1,555 | $ | 1,186 | $ | — | $ | 2,741 | |||||||||||||||||
Gross realized investment (losses) | — | — | — | — | |||||||||||||||||||||
Net realized investment gains | 1,555 | 1,186 | — | 2,741 | |||||||||||||||||||||
Other, including gains on calls and redemptions | 15 | — | 223 | 238 | |||||||||||||||||||||
Net realized investment gains | $ | 1,570 | $ | 1,186 | $ | 223 | $ | 2,979 | |||||||||||||||||
Major categories of the Company’s net investment income are summarized as follows: | |||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
Gross investment income: | |||||||||||||||||||||||||
Fixed maturity securities | $ | 26,622 | $ | 26,422 | $ | 27,167 | |||||||||||||||||||
Short-term investments and cash and cash equivalents | 426 | 634 | 489 | ||||||||||||||||||||||
Equity securities | 232 | 543 | 446 | ||||||||||||||||||||||
Other investments | 1,611 | 803 | — | ||||||||||||||||||||||
Total gross investment income | 28,891 | 28,402 | 28,102 | ||||||||||||||||||||||
Investment expenses | (1,677 | ) | (1,373 | ) | (1,084 | ) | |||||||||||||||||||
Net investment income | $ | 27,214 | $ | 27,029 | $ | 27,018 | |||||||||||||||||||
The following table summarizes the fair value and gross unrealized losses on securities, aggregated by major investment category and length of time that the individual securities have been in a continuous unrealized loss position: | |||||||||||||||||||||||||
Less Than 12 Months | 12 Months or Greater | Total | |||||||||||||||||||||||
Fair Value of | Gross | Fair Value of | Gross | Fair Value of | Gross | ||||||||||||||||||||
Investments | Unrealized | Investments | Unrealized | Investments | Unrealized | ||||||||||||||||||||
with | Losses | with | Losses | with | Losses | ||||||||||||||||||||
Unrealized | Unrealized | Unrealized | |||||||||||||||||||||||
Losses | Losses | Losses | |||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||
Held-to-Maturity | |||||||||||||||||||||||||
Fixed maturity securities: | |||||||||||||||||||||||||
Corporate bonds | $ | 129,788 | $ | 520 | $ | — | $ | — | $ | 129,788 | $ | 520 | |||||||||||||
States and political subdivisions | 16,896 | 58 | — | — | 16,896 | 58 | |||||||||||||||||||
U.S. Treasury securities and obligations of U.S. Government agencies | 3,385 | 2 | — | — | 3,385 | 2 | |||||||||||||||||||
U.S. agency-based mortgage-backed securities | 78 | 2 | — | — | 78 | 2 | |||||||||||||||||||
Asset-backed securities | — | — | 1,662 | 82 | 1,662 | 82 | |||||||||||||||||||
Total held-to-maturity securities | 150,147 | 582 | 1,662 | 82 | 151,809 | 664 | |||||||||||||||||||
Available-for Sale | |||||||||||||||||||||||||
Fixed maturity securities: | |||||||||||||||||||||||||
Corporate bonds | $ | 106,185 | $ | 470 | $ | — | $ | — | $ | 106,185 | $ | 470 | |||||||||||||
States and political subdivisions | 3,810 | 6 | 10,347 | 1,666 | 14,157 | 1,672 | |||||||||||||||||||
U.S. agency-based mortgage-backed securities | 627 | 11 | 7,757 | 1,341 | 8,384 | 1,352 | |||||||||||||||||||
Total available-for-sale securities | 110,622 | 487 | 18,104 | 3,007 | 128,726 | 3,494 | |||||||||||||||||||
Total | $ | 260,769 | $ | 1,069 | $ | 19,766 | $ | 3,089 | $ | 280,535 | $ | 4,158 | |||||||||||||
December 31, 2013 | |||||||||||||||||||||||||
Held-to-Maturity | |||||||||||||||||||||||||
Fixed maturity securities: | |||||||||||||||||||||||||
Corporate bonds | $ | 14,090 | $ | 41 | $ | — | $ | — | $ | 14,090 | $ | 41 | |||||||||||||
States and political subdivisions | 54,895 | 1,147 | 311 | 6 | 55,206 | 1,153 | |||||||||||||||||||
Asset-backed securities | — | — | 1,916 | 144 | 1,916 | 144 | |||||||||||||||||||
Total held-to-maturity securities | 68,985 | 1,188 | 2,227 | 150 | 71,212 | 1,338 | |||||||||||||||||||
Available-for Sale | |||||||||||||||||||||||||
Fixed maturity securities: | |||||||||||||||||||||||||
Corporate bonds | $ | 29,691 | $ | 361 | $ | — | $ | — | $ | 29,691 | $ | 361 | |||||||||||||
States and political subdivisions | 101,908 | 4,798 | 1,753 | 342 | 103,661 | 5,140 | |||||||||||||||||||
U.S. agency-based mortgage-backed securities | 1,303 | 465 | 5,772 | 2,502 | 7,075 | 2,967 | |||||||||||||||||||
Equity securities | 5,205 | 567 | — | — | 5,205 | 567 | |||||||||||||||||||
Total available-for-sale securities | 138,107 | 6,191 | 7,525 | 2,844 | 145,632 | 9,035 | |||||||||||||||||||
Total | $ | 207,092 | $ | 7,379 | $ | 9,752 | $ | 2,994 | $ | 216,844 | $ | 10,373 | |||||||||||||
At December 31, 2014, the Company held 174 individual fixed maturity securities that were in an unrealized loss position, of which 19 were in a continuous unrealized loss position for longer than 12 months. | |||||||||||||||||||||||||
The Company regularly reviews its investment portfolio to evaluate the necessity of recording impairment losses for other-than-temporary declines in the fair value of our investments. The Company considers various factors in determining if a decline in the fair value of an individual security is other-than-temporary. The key factors considered are: | |||||||||||||||||||||||||
• | any reduction or elimination of dividends, or nonpayment of scheduled principal or interest payments; | ||||||||||||||||||||||||
• | the financial condition and near-term prospects of the issuer of the applicable security, including any specific events that may affect its operations or earnings; | ||||||||||||||||||||||||
• | how long and by how much the fair value of the security has been below its cost or amortized cost; | ||||||||||||||||||||||||
• | any downgrades of the security by a rating agency; | ||||||||||||||||||||||||
• | our intent not to sell the security for a sufficient time period for it to recover its value; | ||||||||||||||||||||||||
• | the likelihood of being forced to sell the security before the recovery of its value; and | ||||||||||||||||||||||||
• | an evaluation as to whether there are any credit losses on debt securities. | ||||||||||||||||||||||||
The Company reviewed all securities with unrealized losses in accordance with the impairment policy described above. The Company expects to hold investments in equity securities for a reasonable period of time sufficient for a recovery of fair value. With the exception of one security deemed to be other-than-temporarily impaired, the Company determined that the unrealized losses in the fixed maturity securities portfolio related primarily to changes in market interest rates since the date of purchase, current conditions in the capital markets and the impact of those conditions on market liquidity and prices generally, and the transfer of the investments from the available-for-sale classification to the held-to-maturity classification in January 2004. We expect to recover the carrying value of these securities as it is not more likely than not that we will be required to sell the security before the recovery of its amortized cost basis. | |||||||||||||||||||||||||
In 2014, the Company impaired a fixed maturity security in the amount of $0.2 million. The impairment charge is included in “Net realized gains (losses) on investments” for 2014. We impaired the security due to a downgrade of the security and the amount of the accumulated unrealized loss. | |||||||||||||||||||||||||
In 2014, the Company exercised a change of control put on a held-to-maturity security. The security held a net carrying value of $2.1 million at the execution of the put option and resulted in a realized loss of $58,000. The issuer experienced a significant downgrade in credit after being acquired by an entity that funded the acquisition primarily through additional borrowings. |
Premiums_Receivable
Premiums Receivable | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Insurance [Abstract] | |||||||||||||
Premiums Receivable | 3 | Premiums Receivable | |||||||||||
Premiums receivable consist primarily of premium-related balances due from policyholders. The balance is shown net of the allowance for doubtful accounts. The components of premiums receivable are shown below: | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
(in thousands) | |||||||||||||
Premiums receivable | $ | 184,128 | $ | 177,037 | |||||||||
Allowance for doubtful accounts | (5,211 | ) | (5,458 | ) | |||||||||
Premiums receivable, net | $ | 178,917 | $ | 171,579 | |||||||||
The following summarizes the activity in the allowance for doubtful accounts: | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(in thousands) | |||||||||||||
Balance, beginning of year | $ | 5,458 | $ | 6,424 | $ | 5,573 | |||||||
Provision for bad debts (1) | 673 | 52 | 2,230 | ||||||||||
Write-offs | (920 | ) | (1,018 | ) | (1,379 | ) | |||||||
Balance, end of year | $ | 5,211 | $ | 5,458 | $ | 6,424 | |||||||
(1) Includes a one-time adjustment of $1.7 million in 2013 as a result of a change in accounting estimate of uncollectible accounts based on historical experience. | |||||||||||||
Included in premiums receivable at December 31, 2014, 2013 and 2012 is the Company’s estimate for EBUB premium of $5.2 million, $4.3 million and $3.0 million, respectively. |
Deferred_Policy_Acquisition_Co
Deferred Policy Acquisition Costs | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Insurance [Abstract] | |||||||||||||
Deferred Policy Acquisition Costs | 4 | Deferred Policy Acquisition Costs | |||||||||||
Deferred policy acquisition costs represent those costs that are incremental and directly related to the successful acquisition of new or renewal of existing insurance contracts. We defer incremental costs that result directly from, and are essential to, the acquisition or renewal of an insurance contract. | |||||||||||||
We also defer a portion of employee total compensation costs directly related to time spent performing specific acquisition or renewal activities. | |||||||||||||
These costs are deferred and expensed over the life of the related policies. Major categories of the Company’s deferred policy acquisition costs are summarized as follows: | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
(in thousands) | |||||||||||||
Agents’ commissions | $ | 15,351 | $ | 15,511 | |||||||||
Premium taxes | 3,100 | 2,526 | |||||||||||
Deferred underwriting expenses | 1,198 | 1,134 | |||||||||||
Total deferred policy acquisition costs | $ | 19,649 | $ | 19,171 | |||||||||
The following summarizes the activity in the deferred policy acquisition costs: | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(in thousands) | |||||||||||||
Balance, beginning of year | $ | 19,171 | $ | 18,419 | $ | 16,578 | |||||||
Policy acquisition costs deferred | 44,295 | 41,278 | 40,961 | ||||||||||
Amortization expense during the year | (43,817 | ) | (40,526 | ) | (39,120 | ) | |||||||
Balance, end of year | $ | 19,649 | $ | 19,171 | $ | 18,419 | |||||||
Property_and_Equipment
Property and Equipment | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Property, Plant and Equipment [Abstract] | |||||||||
Property and Equipment | 5 | Property and Equipment | |||||||
Property and equipment consist of the following: | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
(in thousands) | |||||||||
Land and office building | $ | 7,758 | $ | 7,749 | |||||
Furniture and equipment | 6,593 | 6,653 | |||||||
Software | 9,875 | 9,615 | |||||||
Automobiles | 73 | 81 | |||||||
24,299 | 24,098 | ||||||||
Accumulated depreciation | (17,059 | ) | (16,549 | ) | |||||
Property and equipment, net | $ | 7,240 | $ | 7,549 | |||||
Furniture and equipment included property held under capital leases of $0.1 million at December 31, 2014. Accumulated depreciation includes $49,000 that is related to these properties at December 31, 2014. The capital lease obligations related to these properties are included in accounts payable and other liabilities. The Company had no capital lease obligations at December 31, 2013. | |||||||||
Future minimum lease payments related to the capital lease obligations are detailed below (in thousands): | |||||||||
2015 | $ | 38 | |||||||
2016 | 39 | ||||||||
2017 | 29 | ||||||||
Present value of net minimum lease payments | $ | 106 | |||||||
Reinsurance
Reinsurance | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Insurance [Abstract] | |||||||||||||||||||||||||
Reinsurance | 6 | Reinsurance | |||||||||||||||||||||||
The Company cedes certain premiums and losses to various reinsurers under quota share and excess-of-loss treaties. These reinsurance arrangements provide for greater diversification of business, allow management to control exposure to potential losses arising from large risks, and provide additional capacity for growth. Ceded reinsurance contracts do not relieve the Company from its obligations to policyholders. The Company remains liable to its policyholders for the portion reinsured to the extent that any reinsurer does not meet the obligations assumed under the reinsurance agreements. To minimize its exposure to significant losses from reinsurer insolvencies, the Company evaluates the financial condition of its reinsurers and monitors concentrations of credit risk arising from similar geographic regions, activities, or economic characteristics of the reinsurers on a continual basis. The effect of reinsurance on premiums written and earned in 2014, 2013 and 2012 was as follows: | |||||||||||||||||||||||||
2014 Premiums | 2013 Premiums | 2012 Premiums | |||||||||||||||||||||||
Written | Earned | Written | Earned | Written | Earned | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
Gross | $ | 393,819 | $ | 389,540 | $ | 372,177 | $ | 348,408 | $ | 328,823 | $ | 306,994 | |||||||||||||
Ceded | (13,793 | ) | (13,793 | ) | (18,425 | ) | (18,425 | ) | (16,305 | ) | (16,305 | ) | |||||||||||||
Net premiums | $ | 380,026 | $ | 375,747 | $ | 353,752 | $ | 329,983 | $ | 312,518 | $ | 290,689 | |||||||||||||
The amounts recoverable from reinsurers consist of the following: | |||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
Unpaid losses recoverable: | |||||||||||||||||||||||||
Case basis | $ | 34,196 | $ | 31,850 | |||||||||||||||||||||
Incurred but not reported | 25,138 | 16,849 | |||||||||||||||||||||||
Paid losses recoverable | 424 | 497 | |||||||||||||||||||||||
Experience-rated commissions recoverable | 26,130 | 26,130 | |||||||||||||||||||||||
Total | $ | 85,888 | $ | 75,326 | |||||||||||||||||||||
Amounts recoverable from reinsurers consists of ceded case reserves, ceded incurred but not reported (“IBNR”) reserves, paid losses recoverable and experience-rated commissions recoverable. Ceded case and ceded IBNR reserves represent the portion of gross loss and loss adjustment expense liabilities that are recoverable under reinsurance agreements, but are not yet due from reinsurers. Paid losses recoverable are receivables currently due from reinsurers for ceded paid losses. The Company considers paid losses recoverable outstanding for more than 90 days to be past due. At December 31, 2014, there were no paid losses recoverable past due. Experience-rated commissions recoverable represents earned commission from certain reinsurance companies based on the financial results of the applicable risks ceded to the reinsurers. | |||||||||||||||||||||||||
In 2013, the Company returned previous recoveries of $2.3 million due to a single closed claim. Excluding this impact, the Company received reinsurance recoveries of $1.5 million in 2014, $2.1 million in 2013 and $5.3 million in 2012. | |||||||||||||||||||||||||
At December 31, 2014, unsecured reinsurance recoverables from reinsurers that exceeded 1.5% of statutory surplus of the Company’s insurance subsidiary are shown below (in thousands). The A.M. Best Company rating for the reinsurer is shown parenthetically. | |||||||||||||||||||||||||
Hannover Reinsurance (Ireland) Limited (A+) | $ | 27,387 | |||||||||||||||||||||||
Odyssey America Reinsurance Corporation (A) | 13,523 | ||||||||||||||||||||||||
Minnesota Workers’ Compensation Reinsurance Association (NR) | 8,518 | ||||||||||||||||||||||||
Tokio Millenium Reinsurance Limited (A++) | 6,410 | ||||||||||||||||||||||||
Clearwater Insurance Company (bbb) | 6,229 | ||||||||||||||||||||||||
Other reinsurers | 23,821 | ||||||||||||||||||||||||
Total reinsurance recoverables | 85,888 | ||||||||||||||||||||||||
Letters of credit and funds held | (47,833 | ) | |||||||||||||||||||||||
Total unsecured reinsurance recoverables | $ | 38,055 | |||||||||||||||||||||||
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||
Income Taxes | 7 | Income Taxes | |||||||||||
The Company’s deferred income tax assets and liabilities are as follows: | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
(in thousands) | |||||||||||||
Deferred income tax assets: | |||||||||||||
Discounting of net unpaid loss and loss adjustment expenses | $ | 17,952 | $ | 17,493 | |||||||||
Unearned premiums | 14,788 | 14,008 | |||||||||||
Accrued expenses and other | 4,306 | 4,336 | |||||||||||
State income tax | 591 | — | |||||||||||
Accrued policyholder dividends | 438 | 684 | |||||||||||
Impaired securities | 80 | 874 | |||||||||||
Accrued insurance-related assessments | 4,804 | 3,989 | |||||||||||
Total deferred tax assets | 42,959 | 41,384 | |||||||||||
Deferred income tax liabilities: | |||||||||||||
Deferred policy acquisition costs | (8,815 | ) | (7,937 | ) | |||||||||
Unrealized gain (loss) on securities available-for-sale | (1,513 | ) | 2,313 | ||||||||||
Property and equipment and other | (331 | ) | (266 | ) | |||||||||
Salvage and subrogation | (289 | ) | (288 | ) | |||||||||
Guaranty fund related items | (780 | ) | (1,561 | ) | |||||||||
Total deferred income tax liabilities | (11,728 | ) | (7,739 | ) | |||||||||
Net deferred income taxes | $ | 31,231 | $ | 33,645 | |||||||||
The components of consolidated income tax expense (benefit) are as follows: | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(in thousands) | |||||||||||||
Current: | |||||||||||||
Federal | $ | 20,811 | $ | 15,270 | $ | 7,373 | |||||||
State | 684 | 504 | 302 | ||||||||||
21,495 | 15,774 | 7,675 | |||||||||||
Deferred: | |||||||||||||
Federal | (821 | ) | (207 | ) | 115 | ||||||||
State | (591 | ) | — | — | |||||||||
(1,412 | ) | (207 | ) | 115 | |||||||||
Total | $ | 20,083 | $ | 15,567 | $ | 7,790 | |||||||
In 2012, 2013 and 2014, the Company made no adjustment to the valuation allowance. As of December 31, 2014, there is no valuation allowance. | |||||||||||||
Income tax expense from operations is different from the amount computed by applying the U.S. federal income tax statutory rate of 35% to income before income taxes as follows: | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(in thousands) | |||||||||||||
Income tax computed at federal statutory tax rate | $ | 25,812 | $ | 20,721 | $ | 13,000 | |||||||
Tax-exempt interest, net | (5,620 | ) | (5,458 | ) | (5,333 | ) | |||||||
State income tax | (146 | ) | 504 | 302 | |||||||||
Dividends received deduction | (60 | ) | (113 | ) | (79 | ) | |||||||
Other | 97 | (87 | ) | (100 | ) | ||||||||
$ | 20,083 | $ | 15,567 | $ | 7,790 | ||||||||
The Company recognizes interest and penalties related to uncertain tax positions in income tax expense. There were no uncertain tax positions as of December 31, 2014, 2013 and 2012. | |||||||||||||
Tax years 2009 through 2014 are subject to examination by the federal and state taxing authorities. In April 2012, the Company was notified by the Internal Revenue Service that the examination for tax year 2009 had been completed, but remains subject to state taxing authorities. |
Line_of_Credit
Line of Credit | 12 Months Ended | |
Dec. 31, 2014 | ||
Text Block [Abstract] | ||
Line of Credit | 8 | Line of Credit |
In October 2007, the Company entered into an agreement providing for a line of credit in the maximum amount of $20.0 million with Frost Bank, NA. The agreement expired in October 2010. The Company renewed this agreement in the fourth quarter 2010 for an additional three years to mature in December 2013. In the fourth quarter 2013, the Company renewed this agreement for an additional three years to mature in December 2016. Under the agreement, advances may be made either in the form of loans or letters of credit. Borrowings under the agreement accrue at interest rates based upon prime rate or LIBOR. Under the agreement, the Company will pay a fee of 0.25% on the unused portion of the loan in arrears quarterly for a fee of $50,000 annually, assuming the line of credit is not used during the calendar year. The line of credit is unsecured. No borrowings or letters of credit were outstanding under the line of credit arrangement at December 31, 2014 or 2013. |
Loss_and_Loss_Adjustment_Expen
Loss and Loss Adjustment Expenses | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Insurance [Abstract] | |||||||||||||
Loss and Loss Adjustment Expenses | 9 | Loss and Loss Adjustment Expenses | |||||||||||
The following table provides a reconciliation of the beginning and ending reserve balances, net of related amounts recoverable from reinsurers, for 2014, 2013 and 2012: | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(in thousands) | |||||||||||||
Balance, beginning of period | $ | 614,557 | $ | 570,450 | $ | 538,214 | |||||||
Less amounts recoverable from reinsurers on unpaid loss and loss adjustment expenses | 48,699 | 55,190 | 60,937 | ||||||||||
Net balance, beginning of period | 565,858 | 515,260 | 477,277 | ||||||||||
Add incurred related to: | |||||||||||||
Current accident year | 268,633 | 241,584 | 222,393 | ||||||||||
Prior accident years | (23,717 | ) | (12,611 | ) | (2,490 | ) | |||||||
Total incurred | 244,916 | 228,973 | 219,903 | ||||||||||
Less paid related to: | |||||||||||||
Current accident year | 52,848 | 51,169 | 50,423 | ||||||||||
Prior accident years | 129,658 | 127,206 | 131,497 | ||||||||||
Total paid | 182,506 | 178,375 | 181,920 | ||||||||||
Net balance, end of period | 628,268 | 565,858 | 515,260 | ||||||||||
Add amounts recoverable from reinsurers on unpaid loss and loss adjustment expenses | 59,334 | 48,699 | 55,190 | ||||||||||
Balance, end of period | $ | 687,602 | $ | 614,557 | $ | 570,450 | |||||||
The foregoing reconciliation reflects favorable development of the net reserves at December 31, 2014, 2013, and 2012. The favorable development reduced loss and loss adjustment expense incurred by $23.7 million in 2014 driven primarily by accident years 2012, 2010 and 2009 of $9.3 million, $6.9 million and $1.7 million, respectively. In 2013 and 2012, the Company recorded favorable development of $12.6 million and $2.5 million, respectively. The revisions to the Company’s reserves reflect new information gained by claims adjusters in the normal course of adjusting claims and is reflected in the financial statements when the information becomes available. It is typical for more serious claims to take several years or longer to settle and the Company continually revises estimates as more information about claimants’ medical conditions and potential disability becomes known and the claims get closer to being settled. | |||||||||||||
Reserves established for workers’ compensation insurance have included the exposure to occupational disease or accidents related to asbestos or environmental claims. The exposure to asbestos claims emanate from the direct sale of workers’ compensation insurance. These claims resulted from industry workers who were exposed to tremolite asbestos dust and electricians and carpenters who were exposed to products that contained asbestos. There has been no known exposure to asbestos claims arising from assumed business. The emergence of these claims is slow and highly unpredictable. The Company estimates full impact of the asbestos exposure by establishing full case basis reserves on all known losses. Reserves for losses incurred but not reported (IBNR) include a provision for development of reserves on reported losses. Reserves are established for loss adjustment expenses (LAE) associated with these case and IBNR loss reserves. | |||||||||||||
The following table details our exposures to various asbestos related claims: | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(in thousands) | |||||||||||||
Reserves for loss and LAE at beginning of year | $ | 219 | $ | 167 | $ | — | |||||||
Incurred losses and LAE during the current year | 882 | 53 | 168 | ||||||||||
Loss and LAE payments | (282 | ) | (1 | ) | (1 | ) | |||||||
Reserves for loss and LAE at end of year | $ | 819 | $ | 219 | $ | 167 | |||||||
The Company has historically written general liability coverages that are reported in other liability lines of business. These coverages may be associated with the property and casualty’s industry exposure to environmental claims. However, the Company has not been notified by any insured for which exposure exists due to these types of claims. Company management believes potential exposure to environmental claims to be remote. Therefore, the Company has no loss or loss adjustment expense reserves for such liabilities. | |||||||||||||
The anticipated effect of inflation is implicitly considered when estimating liabilities for loss and loss adjustment expenses. Average severities are projected based on historical trends adjusted for implemented changes in underwriting standards, policy provisions and general economic trends. These anticipated trends are monitored based on actual development and are modified if necessary. |
Statutory_Accounting_and_Regul
Statutory Accounting and Regulatory Requirements | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Text Block [Abstract] | |||||||||||||
Statutory Accounting and Regulatory Requirements | 10 | Statutory Accounting and Regulatory Requirements | |||||||||||
The Company’s insurance subsidiaries file financial statements prepared in accordance with statutory accounting principles prescribed or permitted by the insurance regulatory authorities of the states in which the subsidiaries are domiciled. Statutory-basis shareholders’ capital and surplus at December 31, 2014, 2013 and 2012 of the directly owned insurance subsidiary, AIIC, and the combined statutory-basis net income and realized investment gains for all AMERISAFE’s insurance subsidiaries for the three years in the period ended December 31, 2014, were as follows (in thousands): | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Capital and surplus | $ | 377,742 | $ | 354,293 | $ | 323,932 | |||||||
Net income | 50,205 | 44,751 | 31,059 | ||||||||||
Realized investment gains (losses) | 693 | (1,214 | ) | 2,958 | |||||||||
Property and casualty insurance companies are subject to certain risk-based capital (“RBC”) requirements specified by the National Association of Insurance Commissioners. Under these requirements, a target minimum amount of capital and surplus maintained by a property/casualty insurance company is determined based on the various risk factors related to it. At December 31, 2014, the capital and surplus of AIIC and its subsidiaries exceeded the minimum RBC requirement. | |||||||||||||
Pursuant to regulatory requirements, AIIC cannot pay dividends to the Company in excess of the lesser of 10% of statutory surplus, or statutory net income, excluding realized investment gains, for the preceding 12-month period, without the prior approval of the Nebraska Director of Insurance. However, for purposes of this dividend calculation, net income from the previous two calendar years may be carried forward to the extent that it has not already been paid out as dividends. AIIC paid $25.0 million in dividends to the Company in 2014, $15.0 million in 2013 and $21.0 million in 2012. Based upon the dividend limitation described above, AIIC could pay to the Company dividends of up to $37.8 million in 2015 without seeking regulatory approval. |
Capital_Stock
Capital Stock | 12 Months Ended | |
Dec. 31, 2014 | ||
Text Block [Abstract] | ||
Capital Stock | 11 | Capital Stock |
Common Stock | ||
The Company is authorized to issue 50,000,000 shares of common stock, par value $0.01 per share. At December 31, 2014, there were 20,155,936 shares of common stock issued and 18,897,686 shares outstanding. | ||
Preferred Stock | ||
Shareholders approved an amended Certificate of Formation for the Company on June 15, 2010 under which the Company is authorized to issue 10,000,000 shares of preferred stock, par value $0.01 per share. At December 31, 2014, there were no shares of preferred stock outstanding. |
Stock_Options_and_Restricted_S
Stock Options and Restricted Stock | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||
Stock Options and Restricted Stock | 12 | Stock Options and Restricted Stock | |||||||||||
2005 Incentive Plan | |||||||||||||
The AMERISAFE 2005 Equity Incentive Plan (the “2005 Incentive Plan”) is administered by the Compensation Committee of the Board and is designed to provide incentive compensation to executive officers and other key management personnel. The 2005 Incentive Plan permits awards in the form of incentive stock options, as defined in Section 422(b) of the Internal Revenue Code of 1986, non-qualified stock options, restricted shares of common stock and restricted stock units. In connection with the approval of the 2012 Equity and Incentive Compensation Plan by the Company’s shareholders, no further awards will be made under the 2005 Equity Incentive Plan. | |||||||||||||
Stock options granted under the 2005 Incentive Plan have an exercise price of not less than 100% of the fair value of the common stock on the date of grant. However, any stock options granted to holders of more than 10% of the Company’s voting stock will have an exercise price of not less than 110% of the fair value of the common stock on the date of grant. Stock option grants are exercisable, subject to vesting requirements determined by the Compensation Committee, for periods of up to ten years from the date of grant, except for any grants to holders of more than 10% of the Company’s voting stock, which will have exercise periods limited to a maximum of five years. Stock options generally expire 90 days after the cessation of an optionee’s service as an employee. However, in the case of an optionee’s death or disability, the unexercised portion of a stock option remains exercisable for up to one year after the optionee’s death or disability. Stock options granted under the 2005 Incentive Plan are not transferable, except by will or the laws of descent and distribution. | |||||||||||||
The Company uses the Black-Scholes-Merton option pricing model to estimate the fair value of each option on the date of grant. The expected terms of options are developed by considering the Company’s historical attrition rate for those employees at the officer level, who are eligible to receive options. Further, the Company aggregates individual awards into homogenous groups based upon grant date. Expected volatility is estimated using daily historical volatility for six companies within the property and casualty insurance sector. The Company believes that historical volatility of this peer group is currently the best estimate of expected volatility of the market price of the Company’s common shares. The dividend yield was assumed to be zero as the Company did not pay cash dividends until 2013. The risk-free interest rate is the yield on the grant date of U.S. Treasury zero coupon securities with a maturity comparable to the expected term of the options. | |||||||||||||
The following table summarizes information about the stock options outstanding under the 2005 Incentive Plan at December 31, 2012, 2013 and 2014: | |||||||||||||
Shares | Weighted- | Weighted- | |||||||||||
Average | Average | ||||||||||||
Exercise | Remaining | ||||||||||||
Price | Contractual Life | ||||||||||||
(in years) | |||||||||||||
Outstanding at January 1, 2012 | 919,348 | 10.37 | 5.5 | ||||||||||
Granted | — | — | — | ||||||||||
Exercised | (86,800 | ) | 9 | — | |||||||||
Canceled, forfeited, or expired | — | — | — | ||||||||||
Outstanding at December 31, 2012 | 832,548 | 10.51 | 4.6 | ||||||||||
Exercisable at December 31, 2012 | 779,948 | 10.08 | 4.4 | ||||||||||
Outstanding at January 1, 2013 | 832,548 | 10.51 | 4.6 | ||||||||||
Granted | — | — | — | ||||||||||
Exercised | (256,300 | ) | 9 | — | |||||||||
Canceled, forfeited, or expired | — | — | — | ||||||||||
Outstanding at December 31, 2013 | 576,248 | 11.12 | 3.8 | ||||||||||
Exercisable at December 31, 2013 | 557,448 | 10.91 | 3.7 | ||||||||||
Outstanding at January 1, 2014 | 576,248 | 11.12 | 3.8 | ||||||||||
Granted | — | — | — | ||||||||||
Exercised | (294,165 | ) | 9.09 | — | |||||||||
Canceled, forfeited, or expired | — | — | — | ||||||||||
Outstanding at December 31, 2014 | 282,083 | 11.3 | 3.6 | ||||||||||
Exercisable at December 31, 2014 | 282,083 | 11.3 | 3.6 | ||||||||||
2014 | 2013 | 2012 | |||||||||||
(in thousands) | |||||||||||||
Cash received from option exercises | $ | 2,674 | $ | 2,344 | $ | 781 | |||||||
Total tax benefits realized for tax deductions from options exercised | 2,797 | 2,002 | 405 | ||||||||||
Total intrinsic value of options exercised | 9,145 | 6,654 | 1,468 | ||||||||||
Grant date fair value of options vested | 144 | 226 | 310 | ||||||||||
Aggregate intrinsic value of vested options outstanding | 8,763 | 17,467 | 13,393 | ||||||||||
The following table summarizes information about the restricted stock outstanding under the 2005 Incentive Plan at December 31, 2014: | |||||||||||||
Shares | Weighted-Average | ||||||||||||
Grant-Date Fair | |||||||||||||
Value per Share | |||||||||||||
Nonvested balance at January 1, 2012 | — | — | |||||||||||
Granted | 8,000 | 27.47 | |||||||||||
Vested | — | — | |||||||||||
Forfeited | — | — | |||||||||||
Nonvested balance at December 31, 2012 | 8,000 | 27.47 | |||||||||||
Granted | — | — | |||||||||||
Vested | (1,600 | ) | 27.47 | ||||||||||
Forfeited | — | — | |||||||||||
Nonvested balance at December 31, 2013 | 6,400 | 27.47 | |||||||||||
Granted | — | — | |||||||||||
Vested | (800 | ) | 27.35 | ||||||||||
Forfeited | (3,200 | ) | 27.59 | ||||||||||
Nonvested balance at December 31, 2014 | 2,400 | 27.35 | |||||||||||
The Company recognized compensation expense of $0.3 million in 2014 and 2013 and $0.2 million in 2012, related to awards made under the 2005 Incentive Plan. Total tax benefits realized for tax deductions from vesting of restricted stock in 2014 and 2013 were $38,000, and $4,000, respectively. | |||||||||||||
2010 Restricted Stock Plan | |||||||||||||
In 2010, the Company’s shareholders approved an amendment to the AMERISAFE Non-Employee Director Restricted Stock Plan (the “2010 Restricted Stock Plan”). The Plan is administered by the Compensation Committee of the Board and provides for the automatic grant of restricted stock awards to non-employee directors of the Company. Awards to non-employee directors are generally subject to terms including non-transferability, immediate vesting upon death or total disability of a director, forfeiture of unvested shares upon termination of service by a director and acceleration of vesting upon a change of control of the Company. The maximum number of shares of common stock that may be issued pursuant to restricted stock awards under the 2010 Restricted Stock Plan is 100,000 shares, subject to the authority of the Board to adjust this amount in the event of a merger, consolidation, reorganization, stock split, combination of shares, recapitalization or similar transaction affecting the common stock. At December 31, 2014, there were 33,186 shares of common stock available for future awards under the 2010 Restricted Stock Plan. | |||||||||||||
Under the 2010 Restricted Stock Plan, each non-employee director is automatically granted a restricted stock award for a number of shares equal to $30,000 divided by the closing price of the Company’s common stock on the date of the annual meeting of shareholders at which the non-employee director is elected or is continuing as a member of the Board. Each restricted stock award vests on the date of the next annual meeting of shareholders following the date of grant, subject to the continued service of the non-employee director. | |||||||||||||
As of December 31, 2014, there were 5,229 shares of restricted stock outstanding under the 2010 Restricted Stock Plan, all of which will vest on the date of the annual meeting of shareholders in 2015. | |||||||||||||
The following table summarizes information about the restricted stock outstanding under the 2010 Restricted Stock Plan at December 31, 2014: | |||||||||||||
Shares | Weighted-Average | ||||||||||||
Grant-Date Fair | |||||||||||||
Value per Share | |||||||||||||
Nonvested balance at January 1, 2012 | 9,513 | 22.06 | |||||||||||
Granted | 7,833 | 26.79 | |||||||||||
Vested | (9,513 | ) | 22.06 | ||||||||||
Forfeited | — | — | |||||||||||
Nonvested balance at December 31, 2012 | 7,833 | 26.79 | |||||||||||
Granted | 5,376 | 33.47 | |||||||||||
Vested | (7,833 | ) | 26.79 | ||||||||||
Forfeited | — | — | |||||||||||
Nonvested balance at December 31, 2013 | 5,376 | 33.47 | |||||||||||
Granted | 5,229 | 37,27 | |||||||||||
Vested | (5,376 | ) | 33.47 | ||||||||||
Forfeited | — | — | |||||||||||
Nonvested balance at December 31, 2014 | 5,229 | 37.27 | |||||||||||
The Company recognized compensation expense of $0.2 million in 2014, 2013 and 2012 related to the 2010 Restricted Stock Plan. Total tax benefits realized for tax deductions from vesting of restricted stock in 2014, 2013 and 2012 were $7,000, $18,000 and $16,000, respectively. | |||||||||||||
2012 Equity and Incentive Compensation Plan | |||||||||||||
In 2012, the Company’s shareholders approved the AMERISAFE 2012 Equity and Incentive Compensation Plan (the “2012 Incentive Plan”). The 2012 Incentive Plan is administered by the Compensation Committee of the Board and is designed to attract, retain and motivate non-employee directors, officers, key employees and consultants by providing incentives for superior performance. The 2012 Incentive Plan authorizes the grant of equity-based compensation in the form of option rights, appreciation rights, restricted shares, restricted stock units, cash incentive awards, performance shares and units, and other types of awards. | |||||||||||||
A maximum of 500,000 shares of common stock may be issued or transferred upon the exercise of option rights or appreciation rights, as restricted shares and released from substantial risk of forfeiture, in payment of restricted stock units, in payment of performance shares or performance units that have been earned, as awards of shares of common stock to non-employee directors, as other awards granted under the 2012 Incentive Plan, or in payment of dividend equivalents paid with respect to awards made under the plan subject to adjustment in the event of a merger, stock dividend, stock split or similar event, which may be original issue shares or treasury shares or a combination of the two. | |||||||||||||
In 2014, 4,312 shares of restricted stock were granted under the 2012 Incentive Plan, which will vest through 2017. In 2013, 80,278 shares of restricted stock were granted under the 2012 Incentive Plan, which will vest through 2020. At December 31, 2014, there were 413,079 shares of common stock available for future awards under the 2012 Incentive Plan. | |||||||||||||
The following table summarizes information about the restricted stock outstanding under the 2012 Incentive Plan at December 31, 2014: | |||||||||||||
Shares | Weighted-Average | ||||||||||||
Grant-Date Fair | |||||||||||||
Value per Share | |||||||||||||
Nonvested balance at January 1, 2012 | — | — | |||||||||||
Granted | 2,331 | 26.79 | |||||||||||
Vested | — | — | |||||||||||
Forfeited | — | — | |||||||||||
Nonvested balance at December 31, 2012 | 2,331 | 26.79 | |||||||||||
Granted | 80,278 | 34.14 | |||||||||||
Vested | — | — | |||||||||||
Forfeited | — | — | |||||||||||
Nonvested balance at December 31, 2013 | 82,609 | 33.93 | |||||||||||
Granted | 4,312 | 43.83 | |||||||||||
Vested | (14,000 | ) | 33.58 | ||||||||||
Forfeited | — | — | |||||||||||
Nonvested balance at December 31, 2014 | 72,921 | 34.59 | |||||||||||
The Company recognized compensation expense of $0.6 million, $0.3 million and $12,000 in 2014, 2013 and 2012, respectively, related to share-based grants. The Company recognized compensation expense of $0.4 million, $0.6 million and $0.2 million in 2014, 2013 and 2012, respectively, related to long-term incentive awards under the 2012 Incentive Plan. The long-term incentive award is a liability award. |
Earnings_Per_Share
Earnings Per Share | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Earnings Per Share [Abstract] | |||||||||||||
Earnings Per Share | 13 | Earnings Per Share | |||||||||||
Diluted earnings per share includes common shares assumed issued under the “treasury stock method,” which reflects the potential dilution that would occur if any outstanding options are exercised. Diluted earnings per share also includes the “if converted” method for participating securities if the result is dilutive. Diluted EPS is calculated as the more dilutive result of either the treasury method or the two-class method. | |||||||||||||
The calculation of basic and diluted EPS for the years ended December 31, 2014, 2013 and 2012 are presented below. | |||||||||||||
For the Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(in thousands, except earnings per share amounts) | |||||||||||||
Basic EPS: | |||||||||||||
Net income, as reported | $ | 53,666 | $ | 43,637 | $ | 29,353 | |||||||
Less allocated income to participating securities | — | 142 | 22 | ||||||||||
Net income available to common shareholders – basic | $ | 53,666 | $ | 43,495 | $ | 29,331 | |||||||
Basic weighted-average common shares | 18,646 | 18,373 | 18,166 | ||||||||||
Basic earnings per share | $ | 2.88 | $ | 2.37 | $ | 1.62 | |||||||
Diluted EPS: | |||||||||||||
Net income available to common shareholders - diluted | $ | 53,666 | $ | 43,495 | $ | 29,331 | |||||||
Diluted weighted average common shares: | |||||||||||||
Weighted average common shares | 18,646 | 18,373 | 18,166 | ||||||||||
Stock options and performance shares | 282 | 376 | 409 | ||||||||||
Diluted weighted average common shares | 18,928 | 18,749 | 18,575 | ||||||||||
Diluted earnings per common share | $ | 2.84 | $ | 2.32 | $ | 1.58 | |||||||
The table below sets forth the reconciliation of the weighted average shares used for the basic and diluted EPS calculation. Under the two-class method, unvested stock options, and out-of-money vested stock options are not considered to be participating securities. | |||||||||||||
Years Ended | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Basic weighted average common shares | 18,646,128 | 18,373,033 | 18,166,261 | ||||||||||
Add: Other common shares eligible for common dividends: | |||||||||||||
Weighted average restricted shares and stock options (including tax benefit component) | 282,376 | 375,776 | 408,930 | ||||||||||
Diluted weighted average common shares | 18,928,504 | 18,748,809 | 18,575,191 | ||||||||||
Comprehensive_Income_and_Accum
Comprehensive Income and Accumulated Other Comprehensive Income (Loss) | 12 Months Ended | ||||||||||||||
Dec. 31, 2014 | |||||||||||||||
Equity [Abstract] | |||||||||||||||
Comprehensive Income and Accumulated Other Comprehensive Income (Loss) | 14 | Comprehensive Income and Accumulated Other Comprehensive Income (Loss) | |||||||||||||
Comprehensive income includes net income plus unrealized gains/losses on our available-for-sale investment securities, net of tax. In reporting comprehensive income on a net basis in the statement of income, we used a 35% tax rate. The following table illustrates the changes in the balance of each component of accumulated other comprehensive income (loss) for each period presented in the financial statements. | |||||||||||||||
Year Ended December 31, | |||||||||||||||
2014 | 2013 | 2012 | |||||||||||||
(in thousands) | |||||||||||||||
Beginning balance | $ | (4,295 | ) | $ | 2,979 | $ | 2,215 | ||||||||
Other comprehensive income (loss) before reclassification | 6,558 | (7,525 | ) | 1,552 | |||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | 547 | 251 | (788 | ) | |||||||||||
Net current period other comprehensive income (loss) | 7,105 | (7,274 | ) | 764 | |||||||||||
Ending balance | $ | 2,810 | $ | (4,295 | ) | $ | 2,979 | ||||||||
The sale or other-than-temporary impairment (OTTI) of an available-for-sale security results in amounts being reclassified from accumulated other comprehensive income (loss) to current period net income. The effects of reclassifications out of accumulated other comprehensive income (loss) by the respective line items of net income are presented in the following table. | |||||||||||||||
Component of Accumulated Other | Year Ended December 31, | Affected line item in the statement of | |||||||||||||
Comprehensive Income (Loss) | income | ||||||||||||||
2014 | 2013 | 2012 | |||||||||||||
(in thousands) | |||||||||||||||
Unrealized gains (losses) on available-for-sale securities | $ | (825 | ) | $ | 30 | $ | 1,211 | Net realized gains/(losses) on investments | |||||||
Other-than-temporary impairment | (16 | ) | (416) | — | Net realized gains/(losses) on investments | ||||||||||
(841 | ) | (386) | 1,211 | Income before income taxes | |||||||||||
294 | 135 | (423 | ) | Income tax expense | |||||||||||
$ | (547 | ) | $ | (251) | $ | 788 | Net income | ||||||||
Pre-Tax | Tax Expense | Net-of-Tax | |||||||||||||
Amount | Amount | ||||||||||||||
(in thousands) | |||||||||||||||
December 31, 2014 | |||||||||||||||
Unrealized gain on securities: | |||||||||||||||
Unrealized gain on available-for-sale securities | $ | 10,133 | $ | 3,546 | $ | 6,587 | |||||||||
Change in unrealized losses on fixed maturity securities with OTTI | 17 | 6 | 11 | ||||||||||||
Less amortization of differences between fair value and amortized cost for fixed maturity security transfer | (44 | ) | (15 | ) | (29 | ) | |||||||||
Reclassification adjustment for gains realized in net income | 825 | 289 | 536 | ||||||||||||
Net unrealized gain | 10,931 | 3,826 | 7,105 | ||||||||||||
Other comprehensive income | $ | 10,931 | $ | 3,826 | $ | 7,105 | |||||||||
December 31, 2013 | |||||||||||||||
Unrealized loss on securities: | |||||||||||||||
Unrealized loss on available-for-sale securities | $ | (11,504 | ) | $ | (4,027 | ) | $ | (7,477 | ) | ||||||
Change in unrealized losses on fixed maturity securities with OTTI | 2 | 1 | 1 | ||||||||||||
Change in unrealized losses on equity securities with OTTI | 416 | 146 | 270 | ||||||||||||
Less amortization of differences between fair value and amortized cost for fixed maturity security transfer | (75 | ) | (26 | ) | (49 | ) | |||||||||
Reclassification adjustment for gains realized in net income | (30 | ) | (11 | ) | (19 | ) | |||||||||
Net unrealized loss | (11,191 | ) | (3,917 | ) | (7,274 | ) | |||||||||
Other comprehensive income | $ | (11,191 | ) | $ | (3,917 | ) | $ | (7,274 | ) | ||||||
December 31, 2012 | |||||||||||||||
Unrealized gain (loss) on securities: | |||||||||||||||
Unrealized gain on available-for-sale securities | $ | 2,555 | $ | 894 | $ | 1,661 | |||||||||
Change in unrealized losses on fixed maturity securities with OTTI | 1 | — | 1 | ||||||||||||
Less amortization of differences between fair value and amortized cost for fixed maturity security transfer | (101 | ) | (35 | ) | (66 | ) | |||||||||
Reclassification adjustment for gains realized in net income | (1,279 | ) | (447 | ) | (832 | ) | |||||||||
Net unrealized gain | 1,176 | 412 | 764 | ||||||||||||
Other comprehensive income | $ | 1,176 | $ | 412 | $ | 764 | |||||||||
Employee_Benefit_Plan
Employee Benefit Plan | 12 Months Ended | |
Dec. 31, 2014 | ||
Compensation and Retirement Disclosure [Abstract] | ||
Employee Benefit Plan | 15 | Employee Benefit Plan |
The Company’s 401(k) benefit plan is available to all employees. The Company matches up to 2% of employee compensation for participating employees, subject to certain limitations. Employees are fully vested in employer contributions to this plan after five years. Company contributions to this plan were $0.4 million in 2014, $0.3 million in 2013 and $0.3 million in 2012. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Commitments and Contingencies Disclosure [Abstract] | |||||
Commitments and Contingencies | 16 | Commitments and Contingencies | |||
The Company is a party to various legal actions arising principally from claims made under insurance policies and contracts. Those actions are considered by the Company in estimating reserves for loss and loss adjustment expenses. In the opinion of management, the ultimate disposition of these matters will not have a material adverse effect on the Company’s consolidated financial position or results of operations. | |||||
The Company provides workers’ compensation insurance in several states that maintain second-injury funds. Incurred losses on qualifying claims that exceed certain amounts may be recovered from these state funds. There is no assurance that the applicable states will continue to provide funding under these programs. | |||||
The Company manages risk on certain long-duration claims by settling these claims through the purchase of annuities from unaffiliated carriers. In the event these carriers are unable to meet their obligations under these contracts, the Company could be liable to the claimants. The following table summarizes (in thousands) the fair value of the annuities at December 31, 2014, that the Company has purchased to satisfy its obligations. The A.M. Best Company rating is shown parenthetically. | |||||
Life Insurance Company | Statement Value | ||||
of Annuities Exceeding | |||||
1% of Statutory Surplus | |||||
Metropolitan Life Insurance Company (A+) | 15,451 | ||||
American General Life Insurance (A) | $ | 15,432 | |||
Pacific Life and Annuity Company (A+) | 15,306 | ||||
New York Life Insurance Company (A++) | 12,131 | ||||
John Hancock Life Insurance Company USA (A+) | 7,854 | ||||
Athene Annuity and Life Assurance Company (B++) | 6,543 | ||||
Liberty Life Assurance Company of Boston (A) | 4,020 | ||||
Other | 17,824 | ||||
$ | 94,561 | ||||
Substantially all of the annuities are issued or guaranteed by life insurance companies that have an A.M. Best Company rating of “A” (Excellent) or better. | |||||
The Company leases equipment and office space under noncancelable operating leases. At December 31, 2014, future minimum lease payments are as follows (in thousands): | |||||
2015 | $ | 140 | |||
2016 | 121 | ||||
2017 | 98 | ||||
2018 | 67 | ||||
2019 | 6 | ||||
$ | 432 | ||||
Rental expense was $0.2 million in 2014, 2013 and 2012. |
Concentration_of_Operations
Concentration of Operations | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Text Block [Abstract] | |||||||||||||||||||||||||
Concentration of Operations | 17 | Concentration of Operations | |||||||||||||||||||||||
The Company derives its revenues almost entirely from its operations in the workers’ compensation insurance line of business. Total net premiums earned for the different lines of business are shown below: | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Dollars | Percent | Dollars | Percent | Dollars | Percent | ||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
Workers’ compensation | $ | 375,746 | 100.0% | $ | 329,986 | 100.0% | $ | 290,538 | 99.9% | ||||||||||||||||
General liability | 1 | 0.00% | (3 | ) | 0.00% | 151 | 0.10% | ||||||||||||||||||
Total net premiums earned | $ | 375,747 | 100.00% | $ | 329,983 | 100.00% | $ | 290,689 | 100.00% | ||||||||||||||||
Net premiums earned during 2014, 2013 and 2012 for the top ten states in 2014 and all others are shown below: | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Dollars | Percent | Dollars | Percent | Dollars | Percent | ||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
Louisiana | $ | 47,643 | 12.7 | % | $ | 42,110 | 12.8 | % | $ | 31,134 | 10.70% | ||||||||||||||
Georgia | 36,761 | 9.8 | 30,096 | 9.1 | 25,033 | 8.6 | |||||||||||||||||||
Pennsylvania | 35,488 | 9.4 | 28,880 | 8.8 | 24,480 | 8.4 | |||||||||||||||||||
North Carolina | 20,872 | 5.6 | 21,019 | 6.4 | 20,036 | 6.9 | |||||||||||||||||||
Florida | 20,691 | 5.5 | 12,950 | 3.9 | 9,180 | 3.2 | |||||||||||||||||||
Illinois | 20,606 | 5.5 | 18,445 | 5.6 | 18,119 | 6.2 | |||||||||||||||||||
Virginia | 16,764 | 4.5 | 15,751 | 4.8 | 16,144 | 5.6 | |||||||||||||||||||
Oklahoma | 16,599 | 4.4 | 17,473 | 5.3 | 16,157 | 5.6 | |||||||||||||||||||
Texas | 14,846 | 4 | 14,949 | 4.5 | 11,687 | 4.0 | |||||||||||||||||||
Minnesota | 13,159 | 3.5 | 10,470 | 3.2 | 10,094 | 3.5 | |||||||||||||||||||
All others | 132,318 | 35.1 | 117,840 | 35.6 | 108,625 | 37.3 | |||||||||||||||||||
Total net premiums earned | $ | 375,747 | 100 | % | $ | 329,983 | 100 | % | $ | 290,689 | 100.0% | ||||||||||||||
Fair_Values_of_Financial_Instr
Fair Values of Financial Instruments | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||
Fair Values of Financial Instruments | 18 | Fair Values of Financial Instruments | |||||||||||||||
The Company determines fair value amounts for financial instruments using available third-party market information. When such information is not available, the Company determines the fair value amounts using appropriate valuation methodologies. Nonfinancial instruments such as real estate, property and equipment, deferred policy acquisition costs, deferred income taxes and loss and loss adjustment expense reserves are excluded from the fair value disclosure. | |||||||||||||||||
Cash and Cash Equivalents—The carrying amounts reported in the accompanying consolidated balance sheets for these financial instruments approximate their fair values. | |||||||||||||||||
Investments—The fair values for fixed maturity and equity securities are based on quoted market prices where available. For those securities not actively traded, fair values were obtained from a third-party investment manager. | |||||||||||||||||
Short Term Investments—The carrying amounts reported in the accompanying consolidated balance sheets for these financial instruments approximate their fair value. | |||||||||||||||||
Other Investments— Other investments consist of LP interests valued using the net asset value provided by the general partner of the LP, which approximates the fair value of the interest. The LP’s objective is to generate absolute returns by investing long and short in publicly-traded global securities. Redemptions are allowed monthly following a sixty day notice with no lock up periods. The Company has no unfunded commitments related to the LP. This investment is characterized as a Level 3 asset in the fair value hierarchy. | |||||||||||||||||
The following table summarizes the carrying or reported values and corresponding fair values for financial instruments: | |||||||||||||||||
December 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Carrying | Fair | Carrying | Fair | ||||||||||||||
Amount | Value | Amount | Value | ||||||||||||||
(in thousands) | |||||||||||||||||
Assets: | |||||||||||||||||
Fixed maturity securities—held to maturity | $ | 639,631 | $ | 664,371 | $ | 536,583 | $ | 561,179 | |||||||||
Fixed maturity securities—available for sale | 331,242 | 331,242 | 237,877 | 237,877 | |||||||||||||
Equity securities | 28 | 28 | 9,302 | 9,302 | |||||||||||||
Cash and cash equivalents | 90,956 | 90,956 | 123,077 | 123,077 | |||||||||||||
Short-term investments | 33,684 | 33,684 | 84,422 | 84,422 | |||||||||||||
Other investments | 11,748 | 11,748 | 10,591 | 10,591 | |||||||||||||
The Company carries available-for-sale securities at fair value in our consolidated financial statements and determines fair value measurements and disclosure in accordance with FASB ASC Topic 820, Fair Value Measurements and Disclosures. | |||||||||||||||||
The Company determines the fair values of its financial instruments based on the fair value hierarchy established in ASC Topic 820, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard defines fair value, describes three levels of inputs that may be used to measure fair value, and expands disclosures about fair value measurements. | |||||||||||||||||
Fair value is defined in ASC Topic 820 as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is the price to sell an asset or transfer a liability and, therefore, represents an exit price, not an entry price. Fair value is the exit price in the principal market (or, if lacking a principal market, the most advantageous market) in which the reporting entity would transact. Fair value is a market-based measurement, not an entity-specific measurement, and, as such, is determined based on the assumptions that market participants would use in pricing the asset or liability. The exit price objective of a fair value measurement applies regardless of the reporting entity’s intent and/or ability to sell the asset or transfer the liability at the measurement date. | |||||||||||||||||
ASC Topic 820 requires the use of valuation techniques that are consistent with the market approach, the income approach and/or the cost approach. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets and liabilities. The income approach uses valuation techniques to convert future amounts, such as cash flows or earnings, to a single present amount on a discounted basis. The cost approach is based on the amount that currently would be required to replace the service capacity of an asset, also known as current replacement cost. Valuation techniques used to measure fair value are to be consistently applied. | |||||||||||||||||
In ASC Topic 820, inputs refer broadly to the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk, for example, the risk inherent in a particular valuation technique used to measure fair value (such as a pricing model) and/or the risk inherent in the inputs to the valuation technique. Inputs may be observable or unobservable: | |||||||||||||||||
• | Observable inputs are inputs that reflect the assumptions market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the reporting entity. | ||||||||||||||||
• | Unobservable inputs are inputs that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. | ||||||||||||||||
Valuation techniques used to measure fair value are intended to maximize the use of observable inputs and minimize the use of unobservable inputs. ASC Topic 820 establishes a fair value hierarchy that prioritizes the use of inputs used in valuation techniques into the following three levels: | |||||||||||||||||
• | Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. | ||||||||||||||||
• | Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability, or inputs that are derived principally from or corroborated by observable market data. | ||||||||||||||||
• | Level 3 inputs are unobservable inputs for the asset or liability. Unobservable inputs are to be used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at the measurement date. | ||||||||||||||||
In general, fair value is based upon quoted market prices, where available. If such quoted market prices are not available, fair value is based upon internally developed models that primarily use, as inputs, observable market-based parameters. | |||||||||||||||||
The fair values of the Company’s investments are based upon prices provided by an independent pricing service. The Company has reviewed these prices for reasonableness and has not adjusted any prices received from the independent provider. Securities reported at fair value utilizing Level 1 inputs represent assets whose fair value is determined based upon observable unadjusted quoted market prices for identical assets in active markets. Level 2 securities represent assets whose fair value is determined using observable market information such as previous day trade prices, quotes from less active markets or quoted prices of securities with similar characteristics. There were no transfers between Level 1 and Level 2 during the year ended December 31, 2014. | |||||||||||||||||
Assets and liabilities measured at fair value on a recurring basis as of December 31, 2014 and 2013 are as follows: | |||||||||||||||||
December 31, 2014 | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total Fair | ||||||||||||||
Inputs | Inputs | Inputs | Value | ||||||||||||||
(in thousands) | |||||||||||||||||
Financial instruments carried at fair value, classified as part of: | |||||||||||||||||
Other investments | $ | — | $ | — | $ | 11,748 | $ | 11,748 | |||||||||
Securities available for sale—equity: | |||||||||||||||||
Domestic common stock | 28 | — | — | 28 | |||||||||||||
Securities available for sale—fixed maturity: | |||||||||||||||||
States and political subdivisions | — | 157,374 | — | 157,374 | |||||||||||||
U.S. agency-based mortgage-backed securities | — | 8,498 | — | 8,498 | |||||||||||||
Corporate bonds | — | 165,370 | — | 165,370 | |||||||||||||
Total available for sale—fixed maturity | $ | — | $ | 331,242 | $ | — | $ | 331,242 | |||||||||
Total available for sale | $ | 28 | $ | 331,242 | $ | 11,748 | $ | 343,018 | |||||||||
December 31, 2013 | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total Fair | ||||||||||||||
Inputs | Inputs | Inputs | Value | ||||||||||||||
(in thousands) | |||||||||||||||||
Financial instruments carried at fair value, classified as part of: | |||||||||||||||||
Other investments | $ | — | $ | — | $ | 10,591 | $ | 10,591 | |||||||||
Securities available for sale—equity | |||||||||||||||||
Domestic common stock | 9,302 | — | — | 9,302 | |||||||||||||
Securities available for sale—fixed maturity | |||||||||||||||||
States and political subdivisions | — | 150,375 | — | 150,375 | |||||||||||||
U.S. agency-based mortgage-backed securities | — | 7,074 | — | 7,074 | |||||||||||||
Corporate bonds | — | 80,428 | — | 80,428 | |||||||||||||
Total available for sale—fixed maturity | $ | — | $ | 237,877 | $ | — | $ | 237,877 | |||||||||
Total available for sale | $ | 9,302 | $ | 237,877 | $ | 10,591 | $ | 257,770 | |||||||||
Assets and liabilities measured at amortized cost as of December 31, 2014 and 2013 are as follows: | |||||||||||||||||
December 31, 2014 | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total Fair | ||||||||||||||
Inputs | Inputs | Inputs | Value | ||||||||||||||
(in thousands) | |||||||||||||||||
Securities held-to-maturity—fixed maturity: | |||||||||||||||||
States and political subdivisions | $ | — | $ | 405,665 | $ | — | $ | 405,665 | |||||||||
Corporate bonds | — | 176,734 | — | 176,734 | |||||||||||||
Commercial mortgage-backed securities | — | 48,529 | — | 48,529 | |||||||||||||
U.S. agency-based mortgage-backed securities | — | 18,672 | — | 18,672 | |||||||||||||
U.S. Treasury securities | 11,792 | — | — | 11,792 | |||||||||||||
Asset-backed securities | — | 2,979 | — | 2,979 | |||||||||||||
Total held-to-maturity | $ | 11,792 | $ | 652,579 | $ | — | $ | 664,371 | |||||||||
December 31, 2013 | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total Fair | ||||||||||||||
Inputs | Inputs | Inputs | Value | ||||||||||||||
(in thousands) | |||||||||||||||||
Securities held-to-maturity—fixed maturity: | |||||||||||||||||
States and political subdivisions | $ | — | $ | 399,155 | $ | — | $ | 399,155 | |||||||||
Corporate bonds | — | 68,243 | — | 68,243 | |||||||||||||
Commercial mortgage-backed securities | — | 54,244 | — | 54,244 | |||||||||||||
U.S. agency-based mortgage-backed securities | — | 23,565 | — | 23,565 | |||||||||||||
U.S. Treasury securities | 6,602 | — | — | 6,602 | |||||||||||||
Obligations of the U.S. Government agencies | — | 5,914 | — | 5,914 | |||||||||||||
Asset-backed securities | — | 3,456 | — | 3,456 | |||||||||||||
Total held-to-maturity | $ | 6,602 | $ | 554,577 | $ | — | $ | 561,179 | |||||||||
The following table presents summary information regarding changes in the fair value of assets measured at fair value using Level 3 input. | |||||||||||||||||
December 31, 2014 | December 31, 2013 | ||||||||||||||||
(in thousands) | |||||||||||||||||
Balance at beginning of year | $ | 10,591 | $ | — | |||||||||||||
Purchases | — | 10,000 | |||||||||||||||
Total gains unrealized (included in earnings as part of net investment income) | 1,157 | 591 | |||||||||||||||
Balance at end of year | $ | 11,748 | $ | 10,591 | |||||||||||||
The purchase reported on the Level 3 table above is related to an interest in a limited partnership. | |||||||||||||||||
The Company determines fair value amounts for financial instruments using available third-party market information. When such information is not available, the Company determines the fair value amounts using appropriate valuation methodologies. Nonfinancial instruments such as real estate, property and equipment, deferred policy acquisition costs, deferred income taxes and loss and loss adjustment expense reserves are excluded from the fair value disclosure. | |||||||||||||||||
At December 31, 2014, the Company held two securities measured at fair value on a nonrecurring basis due to a recognized impairment of $0.3 million. The securities are valued using Level 2 inputs and had a value of $0.4 million at December 31, 2014. |
Quarterly_Financial_Data_Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||
Quarterly Financial Data (Unaudited) | 19 | Quarterly Financial Data (Unaudited) | |||||||||||||||
The following table represents unaudited quarterly financial data for the years ended December 31, 2014 and 2013. | |||||||||||||||||
Three Months Ended | |||||||||||||||||
March 31 | June 30 | September 30 | December 31 | ||||||||||||||
(in thousands, except per share amounts) | |||||||||||||||||
2014 | |||||||||||||||||
Premiums earned | $ | 89,233 | $ | 93,516 | $ | 95,928 | $ | 97,070 | |||||||||
Net investment income | 6,708 | 6,845 | 6,495 | 7,166 | |||||||||||||
Net realized gains (losses) on investments | 101 | 232 | (152 | ) | 516 | ||||||||||||
Total revenues | 96,173 | 100,624 | 102,336 | 104,886 | |||||||||||||
Income before income taxes | 13,404 | 17,061 | 19,348 | 23,936 | |||||||||||||
Net income | 10,549 | 12,773 | 13,479 | 16,865 | |||||||||||||
Net income available to common shareholders | 10,549 | 12,773 | 13,479 | 16,865 | |||||||||||||
Earnings per share: | |||||||||||||||||
Basic | 0.57 | 0.69 | 0.72 | 0.9 | |||||||||||||
Diluted | 0.56 | 0.68 | 0.71 | 0.89 | |||||||||||||
Comprehensive income | 13,789 | 15,789 | 13,596 | 17,597 | |||||||||||||
Extraordinary cash dividends declared per common share | $ | 0.5 | $ | — | $ | — | $ | 1 | |||||||||
Cash dividends declared per common share | $ | 0.12 | $ | 0.12 | $ | 0.12 | $ | 0.12 | |||||||||
2013 | |||||||||||||||||
Premiums earned | $ | 79,709 | $ | 81,983 | $ | 81,596 | $ | 86,695 | |||||||||
Net investment income | 6,670 | 6,649 | 6,947 | 6,763 | |||||||||||||
Net realized gains (losses) on investments | 24 | (1,291 | ) | (654 | ) | 710 | |||||||||||
Total revenues | 86,512 | 87,511 | 88,003 | 94,309 | |||||||||||||
Income before income taxes | 11,080 | 10,647 | 12,447 | 25,030 | |||||||||||||
Net income | 8,851 | 7,644 | 9,699 | 17,443 | |||||||||||||
Net income available to common shareholders | 8,836 | 7,618 | 9,673 | 17,364 | |||||||||||||
Earnings per share: | |||||||||||||||||
Basic | 0.48 | 0.42 | 0.53 | 0.94 | |||||||||||||
Diluted | 0.47 | 0.41 | 0.52 | 0.92 | |||||||||||||
Comprehensive income | 8,306 | 3,584 | 8,654 | 15,819 | |||||||||||||
Cash dividends declared per common share | $ | 0.08 | $ | 0.08 | $ | 0.08 | $ | 0.08 |
Capital_Management
Capital Management | 12 Months Ended | |
Dec. 31, 2014 | ||
Text Block [Abstract] | ||
Capital Management | 20 | Capital Management |
The Company’s Board of Directors initiated a share repurchase program in February 2011. In October 2012, 2013 and 2014 the Board reauthorized this program with a new limit of $25.0 million. Unless reauthorized, the program will expire on December 31, 2015. Since beginning of this plan, the Company has repurchased a total of 1,258,250 shares for $22.4 million, or an average price of $17.78, including commissions. | ||
In 2013, the Company’s Board of Directors initiated a quarterly dividend. During 2014, the Company’s Board of Directors declared a quarterly dividend of $0.12 per share compared to $0.08 per share in 2013. The Company declared extraordinary dividends totaling $1.50 per share in 2014. There were no extraordinary dividends declared in 2013. |
Subsequent_Events
Subsequent Events | 12 Months Ended | |
Dec. 31, 2014 | ||
Subsequent Events [Abstract] | ||
Subsequent Events | 21 | Subsequent Events |
On February 11, 2015, the Company was notified of an adverse verdict against its subsidiary, American Interstate Insurance Company, related to a 2009 workers’ compensation claim in the State of Iowa. The verdict was for $25.3 million, of which $0.3 million was actual damages and $25.0 million was punitive damages. For the fourth quarter of 2014, the Company recognized an additional $0.3 million in reserves related to this claim. As of December 31, 2014, the Company’s total reserve for the claim was $2.7 million. The Company presently believes that this reserve amount, together with its reinsurance coverage, is adequate to satisfy this claim. American Interstate will appeal this verdict. | ||
On February 24, 2015 the Company declared a regular quarterly cash dividend of $0.15 per share payable on March 27, 2015 to shareholders of record on March 13, 2015. In 2014, the Company paid a quarterly cash dividend of $0.12 per share. | ||
The Board intends to continue to consider the payment of a regular cash dividend each calendar quarter. On an annualized basis, the cash dividend is expected to be $0.60 per share. |
Schedule_II_Condensed_Financia
Schedule II. Condensed Financial Information of Registrant | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |||||||||||||
Schedule II. Condensed Financial Information of Registrant | Schedule II. Condensed Financial Information of Registrant | ||||||||||||
AMERISAFE, INC. | |||||||||||||
CONDENSED BALANCE SHEETS | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
(in thousands) | |||||||||||||
Assets | |||||||||||||
Investments: | |||||||||||||
Short-term investments | $ | 250 | $ | 248 | |||||||||
Fixed-maturity securities—available-for-sale, at fair value | — | 965 | |||||||||||
Other investments | 11,748 | 10,591 | |||||||||||
Investment in subsidiaries | 387,954 | 352,193 | |||||||||||
Total investments | 399,952 | 363,997 | |||||||||||
Cash and cash equivalents | 43,585 | 47,726 | |||||||||||
Deferred income taxes | 1,001 | 1,383 | |||||||||||
Notes receivable from subsidiaries | (1 | ) | 1,805 | ||||||||||
Property and equipment, net | 2,070 | 2,181 | |||||||||||
Other assets | 4,992 | 556 | |||||||||||
$ | 451,599 | $ | 417,648 | ||||||||||
Liabilities, redeemable preferred stock and shareholders’ equity | |||||||||||||
Liabilities: | |||||||||||||
Accounts payable and other liabilities | $ | 3,853 | $ | 834 | |||||||||
Notes payable to subsidiaries | 778 | — | |||||||||||
Total liabilities | 4,631 | 834 | |||||||||||
Shareholders’ equity (net of Treasury stock of $22,370 at December 31, 2014 and 2013) | 446,968 | 416,814 | |||||||||||
$ | 451,599 | $ | 417,648 | ||||||||||
AMERISAFE, INC. | |||||||||||||
CONDENSED STATEMENTS OF INCOME | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(in thousands) | |||||||||||||
Revenues | |||||||||||||
Net investment income | $ | 1,541 | $ | 1,051 | $ | 571 | |||||||
Fee and other income | 5,368 | 5,453 | 4,765 | ||||||||||
Total revenues | 6,909 | 6,504 | 5,336 | ||||||||||
Expenses | |||||||||||||
Other operating costs | 6,909 | 6,504 | 4,770 | ||||||||||
Interest expense | — | — | 566 | ||||||||||
Total expenses | 6,909 | 6,504 | 5,336 | ||||||||||
Income (loss) before income taxes and equity in earnings of subsidiaries | — | — | — | ||||||||||
Income tax expense (benefit) | (13 | ) | 6 | (9 | ) | ||||||||
Gain (loss) before equity in earnings of subsidiaries | 13 | (6 | ) | 9 | |||||||||
Equity in net income of subsidiaries | 53,653 | 43,643 | 29,344 | ||||||||||
Net income | $ | 53,666 | $ | 43,637 | $ | 29,353 | |||||||
AMERISAFE, INC. | |||||||||||||
CONDENSED STATEMENTS OF CASH FLOWS | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(in thousands) | |||||||||||||
Operating activities | |||||||||||||
Net cash (used in) provided by operating activities | $ | 2,161 | $ | 1,829 | $ | 5,149 | |||||||
Investing activities | |||||||||||||
Purchases of investments | (1,462 | ) | (10,248 | ) | (23,361 | ) | |||||||
Proceeds from sales of investments | 2,404 | 11,674 | 39,537 | ||||||||||
Purchases of property and equipment | (691 | ) | (779 | ) | (842 | ) | |||||||
Dividends from subsidiary | 25,000 | 15,000 | 21,000 | ||||||||||
Net cash provided by investing activities | 25,251 | 15,647 | 36,334 | ||||||||||
Financing activities | |||||||||||||
Proceeds from stock option exercises | 2,674 | 2,344 | 781 | ||||||||||
Tax benefit from share-based payments | 2,841 | 2,024 | 421 | ||||||||||
Redemption of Subordinated Debt Security | — | — | (25,780 | ) | |||||||||
Dividends to shareholders | (37,068 | ) | (5,910 | ) | — | ||||||||
Net cash used in financing activities | (31,553 | ) | (1,542 | ) | (24,578 | ) | |||||||
Change in cash and cash equivalents | (4,141 | ) | 15,934 | 16,905 | |||||||||
Cash and cash equivalents at beginning of year | 47,726 | 31,792 | 14,887 | ||||||||||
Cash and cash equivalents at end of year | $ | 43,585 | $ | 47,726 | $ | 31,792 | |||||||
Schedule_VI_Supplemental_Infor
Schedule VI. Supplemental Information Concerning Property-Casualty Insurance Operations | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||||||||||
Supplemental Information for Property, Casualty Insurance Underwriters [Abstract] | |||||||||||||||||||||||||||||||||||||||||
Schedule VI. Supplemental Information Concerning Property-Casualty Insurance Operations | Schedule VI. Supplemental Information Concerning Property—Casualty Insurance Operations | ||||||||||||||||||||||||||||||||||||||||
AMERISAFE, INC. AND SUBSIDIARIES | |||||||||||||||||||||||||||||||||||||||||
Deferred | Reserves for | Unearned | Earned | Net | Loss and | Loss and | Amortization | Paid Claims | Net | ||||||||||||||||||||||||||||||||
Policy | Unpaid Loss | Premium | Premium | Investment | LAE | LAE | of Deferred | and Claim | Premiums | ||||||||||||||||||||||||||||||||
Acquisition | and Loss | Income | Related to | Related to | Policy | Adjustment | Written | ||||||||||||||||||||||||||||||||||
Cost | Adjustment | Current | Prior | Acquisition | Expenses | ||||||||||||||||||||||||||||||||||||
Expense | Period | Periods | Costs | ||||||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||||||||
2014 | $ | 19,649 | $ | 687,602 | $ | 168,576 | $ | 375,747 | $ | 27,214 | $ | 268,633 | $ | (23,717) | $ | (43,817) | $ | 182,506 | $ | 380,026 | |||||||||||||||||||||
2013 | 19,171 | 614,557 | 164,296 | 329,983 | 27,029 | 241,584 | -12,611 | -40,526 | 178,375 | 353,752 | |||||||||||||||||||||||||||||||
2012 | 18,419 | 570,450 | 140,528 | 290,689 | 27,018 | 222,393 | -2,490 | -39,120 | 181,920 | 312,518 |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2014 | |
Accounting Policies [Abstract] | |
Organization | Organization |
AMERISAFE, Inc. is an insurance holding company incorporated in the state of Texas. The accompanying consolidated financial statements include the accounts of AMERISAFE and its subsidiaries: American Interstate Insurance Company (“AIIC”) and its insurance subsidiaries, Silver Oak Casualty, Inc. (“SOCI”) and American Interstate Insurance Company of Texas (“AIICTX”), Amerisafe Risk Services, Inc. (“RISK”) and Amerisafe General Agency, Inc. (“AGAI”). AIIC and SOCI are property and casualty insurance companies organized under the laws of the state of Nebraska. In 2013, AIIC and SOCI were re-domesticated to Nebraska from Louisiana. AIICTX is a property and casualty insurance company organized under the laws of the state of Texas. RISK, a wholly owned subsidiary of the Company, is a claims and safety service company servicing only affiliated insurance companies. AGAI, a wholly owned subsidiary of the Company, is a general agent for the Company. AGAI sells insurance, which is underwritten by AIIC, SOCI and AIICTX, as well as by nonaffiliated insurance carriers. The assets and operations of AGAI are not significant to that of the consolidated entity. | |
The terms “AMERISAFE,” the “Company,” “we,” “us” or “our” refer to AMERISAFE, Inc. and its consolidated subsidiaries, as the context requires. | |
The Company provides workers’ compensation insurance for companies primarily in special trade groups, including construction, trucking, manufacturing, oil and gas and agriculture. Assets and revenues of AIIC represent at least 95% of comparable consolidated amounts of the Company for each of 2014, 2013 and 2012. | |
Basis of Presentation | Basis of Presentation |
The accompanying consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”). The preparation of financial statements in accordance 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. | |
Reclassifications | Reclassifications |
Certain prior year amounts have been reclassified to conform with the current year presentation. | |
Investments | Investments |
The Company has the ability and positive intent to hold certain investments until maturity. Therefore, fixed maturity securities classified as held-to-maturity are recorded at amortized cost. Equity securities and fixed maturity securities classified as available-for-sale are recorded at fair value. Temporary changes in the fair value of these securities are reported in shareholders’ equity as a component of other comprehensive income, net of deferred income taxes. | |
Investment income is recognized as it is earned. The discount or premium on fixed maturity securities is amortized using the “constant yield” method. Anticipated prepayments, where applicable, are considered when determining the amortization of premiums or discounts. Realized investment gains and losses are determined using the specific identification method. | |
The Company regularly reviews the fair value of its investments. Impairment of an investment security results in a reduction of the carrying value of the security and the realization of a loss when the fair value of the security declines below the cost or amortized cost, as applicable, for the security and the impairment is deemed to be other-than-temporary. The Company regularly reviews its investment portfolio to evaluate the existence of other-than-temporary declines in the fair value of investments. The Company considers various factors in determining if a decline in the fair value of an individual security is other-than-temporary, including but not limited to a reduction or interruption in scheduled cash flows, the financial condition of the issuer, how long and by how much the fair value has been below amortized cost, losses due to credit concerns, downgrades and the Company’s intent to sell or ability to hold the security. | |
Other-than-temporary impairment losses on equity securities are recognized in net income and are measured as the difference between cost and fair value. Impairment losses on fixed maturities are recognized in the financial statements depending on the facts and circumstances related to the specific security. If we intend to sell a security or it is more likely than not that we would be required to sell a security before the recovery of its amortized cost, less any current period credit loss, an other-than-temporary impairment | |
would be recognized in net income for the difference between amortized cost and fair value. If we do not expect to recover the amortized cost basis, we do not plan to sell the security and if it is not more likely than not that we would be required to sell a security before the recovery of its amortized cost, less any current period credit loss, the recognition of the other-than-temporary impairment is bifurcated. The credit loss portion would be recognized in net income and the noncredit loss portion in other comprehensive income. | |
Cash and Cash Equivalents | Cash and Cash Equivalents |
Cash equivalents include short-term money market funds and corporate bonds with an original maturity of three months or less. | |
Short-Term Investments | Short-Term Investments |
Short-term investments include municipal securities, corporate bonds and certificates of deposit with an original maturity greater than three months but less than one year. | |
Other Investments | Other Investments |
Other investments consist of a limited partnership (“LP”) interest that is accounted for under the equity method valued using the net asset value provided by the general partner of the LP, which approximates the fair value of the interest. The LP’s objective is to generate absolute returns by investing long and short in publicly-traded global securities. Redemptions are allowed monthly following a sixty day notice with no lock up periods. The Company has no unfunded commitments related to the LP. | |
Premiums Receivable | Premiums Receivable |
Premiums receivable consist primarily of premium-related balances due from policyholders. The Company considers premiums receivable as past due based on the payment terms of the underlying policy. The balance is shown net of the allowance for doubtful accounts. Receivables due from insureds are charged off when a determination has been made by management that a specific balance will not be collected. An estimate of amounts that are likely to be charged off is established as an allowance for doubtful accounts as of the balance sheet date. The estimate is primarily comprised of specific balances that are considered probable to be charged off after all collection efforts have ceased, as well as historical trends and an analysis of the aging of the receivables. | |
Property and Equipment | Property and Equipment |
The Company’s property and equipment, including certain costs incurred to develop or obtain software for internal use, are stated at cost less accumulated depreciation. Depreciation is calculated primarily by the straight-line method over the estimated useful lives of the respective assets, generally 39 years for buildings and three to seven years for all other fixed assets. | |
Deferred Policy Acquisition Costs | Deferred Policy Acquisition Costs |
The direct costs of successfully acquiring and renewing business are capitalized to the extent recoverable and are amortized over the effective period of the related insurance policies in proportion to premium revenue earned. These capitalized costs consist mainly of sales commissions, premium taxes and other underwriting costs. The Company evaluates deferred policy acquisition costs for recoverability by comparing the unearned premiums to the estimated total expected claim costs and related expenses, offset by anticipated investment income. The Company would reduce the deferred costs if the unearned premiums were less than expected claims and expenses after considering investment income, and report any adjustments in amortization of deferred policy acquisition costs. There were no adjustments necessary in 2014, 2013 or 2012. | |
Reserves for Loss and Loss Adjustment Expenses | Reserves for Loss and Loss Adjustment Expenses |
Reserves for loss and loss adjustment expenses represent the estimated ultimate cost of all reported and unreported losses incurred through December 31. The Company does not discount loss and loss adjustment expense reserves. The reserves for loss and loss adjustment expenses are estimated using individual case-basis valuations, statistical analyses and estimates based upon experience for unreported claims and their associated loss and loss adjustment expenses. Such estimates may be more or less than the amounts ultimately paid when the claims are settled. The estimates are subject to the effects of trends in loss severity and frequency. Although considerable variability is inherent in these estimates, management believes that the reserves for loss and loss adjustment expenses are adequate. The estimates are continually reviewed and adjusted as necessary as experience develops or new information becomes known. Any adjustments are included in current operations. | |
Subrogation recoverables, as well as deductible recoverables from policyholders, are estimated using individual case-basis valuations and aggregate estimates. Deductibles that are recoverable from policyholders and other recoverables from state funds decrease the liability for loss and loss adjustment expenses. | |
The Company funds its obligations under certain settled claims where the payment pattern and ultimate cost are fixed and determinable on an individual claim basis through the purchase of annuities. These annuities are purchased from unaffiliated carriers | |
and name the claimant as payee. The cost of purchasing the annuity is recorded as paid loss and loss adjustment expenses. To the extent the annuity funds estimated future claims, reserves for loss and loss adjustment expense are reduced. | |
Premium Revenue | Premium Revenue |
Premiums on workers’ compensation insurance are based on actual payroll costs or production during the policy term and are normally billed monthly in arrears or annually. However, the Company generally requires a deposit at the inception of a policy. | |
Premium revenue is earned on a pro rata basis over periods covered by the policies. The reserve for unearned premiums on these policies is computed on a daily pro rata basis. | |
The Company estimates the annual premiums to be paid by its policyholders when the Company issues the policies and records those amounts on the balance sheet as premiums receivable. The Company conducts premium audits on all of its voluntary business policyholders annually, upon the expiration of each policy, including when the policy is renewed. The purpose of these audits is to verify that policyholders have accurately reported their payroll expenses and employee job classifications, and therefore have paid the Company the premium required under the terms of the policies. The difference between the estimated premium and the ultimate premium is referred to as “earned but unbilled” premium, or EBUB premium. EBUB premium can be higher or lower than the estimated premium. EBUB premium is subject to significant variability and can either increase or decrease earned premium based upon several factors, including changes in premium growth, industry mix and economic conditions. Due to the timing of audits and other adjustments, ultimate premium earned is generally not determined for several months after the expiration of the policy. | |
The Company estimates EBUB premiums on a quarterly basis using historical data and applying various assumptions based on the current market and records an adjustment to premium, related losses, and expenses as warranted. | |
Reinsurance | Reinsurance |
Reinsurance premiums, losses and allocated loss adjustment expenses are accounted for on a basis consistent with those used in accounting for the original policies issued and the terms of the reinsurance contracts. | |
Amounts recoverable from reinsurers include balances currently owed to the Company for losses and allocated loss adjustment expenses that have been paid to policyholders, amounts that are currently reserved for and will be recoverable once the related expense has been paid and experience-rated commissions recoverable upon commutation. | |
Upon management’s determination that an amount due from a reinsurer is uncollectible due to the reinsurer’s insolvency or other matters, the amount is written off. | |
Ceding commissions are earned from certain reinsurance companies and are intended to reimburse the Company for policy acquisition costs related to those premiums ceded to the reinsurers. Ceding commission income is recognized over the effective period of the related insurance policies in proportion to premium revenue earned and is reflected as a reduction in underwriting and certain other operating costs. | |
Experience-rated commissions are earned from certain reinsurance companies based on the financial results of the applicable risks ceded to the reinsurers. These commission revenues on reinsurance contracts are recognized during the related reinsurance treaty period and are based on the same assumptions used for recording loss and allocated loss adjustment expenses. These commissions are reflected as a reduction in underwriting and certain other operating costs and are adjusted as necessary as experience develops or new information becomes known. Any such adjustments are included in current operations. Experience-rated commissions had no impact on underwriting and certain other operating costs in 2014 compared to a reduction of $9.3 million in 2013 and $11.1million in 2012. | |
Fee and Other Income | Fee and Other Income |
The Company recognizes income related to commissions earned by AGAI as the related services are performed. | |
Advertising | Advertising |
All advertising expenditures incurred by the Company are charged to expense in the period to which they relate and are included in underwriting and certain other operating costs in the consolidated statements of income. Total advertising expenses incurred were $0.5 million in 2014, $0.5 million in 2013 and $0.4 million in 2012. | |
Income Taxes | Income Taxes |
The Company accounts for income taxes using the liability method. The provision for income taxes has two components, amounts currently payable or receivable and deferred amounts. Deferred income tax assets and liabilities are recognized for the differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred income tax assets and liabilities are measured using tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred income tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. | |
The Company considers deferred tax assets to be recoverable if it is probable that the related tax losses can be offset by future taxable income. The Company includes reversal of existing temporary differences, tax planning strategies available and future operating income in this assessment. To the extent the deferred tax assets exceed the amount expected to be recovered in future years, the Company records a valuation allowance for the amount determined unrecoverable. | |
Insurance-Related Assessments | Insurance-Related Assessments |
Insurance-related assessments are accrued in the period in which they have been incurred. The Company is subject to a variety of assessments related to insurance commerce, including those by state guaranty funds and workers’ compensation second-injury funds. State guaranty fund assessments are used by state insurance oversight agencies to cover losses of policyholders of insolvent or rehabilitated insurance companies and for the operating expenses of such agencies. The Company has a premium tax benefit accrued of $4.0 million and $3.6 million as of December 31, 2014 and 2013, respectively, for mandatory assessments that may be recovered through a reduction in future premium taxes in certain states. Assessments based on premiums are generally paid one year after the calendar year in which the premium is written, while assessments based on losses are generally paid within one year of the calendar year in which the loss is paid. | |
Policyholder Dividends | Policyholder Dividends |
The Company writes certain policies for which the policyholder may participate in favorable claims experience through a dividend. An estimated provision for workers’ compensation policyholders’ dividends is accrued as the related premiums are earned. Dividends do not become a fixed liability unless and until declared by the respective Boards of Directors of AMERISAFE’s insurance subsidiaries. The dividend to which a policyholder may be entitled is set forth in the policy and is related to the amount of losses sustained under the policy. Dividends are calculated after the policy expiration. The Company is able to estimate the policyholder dividend liability because the Company has information regarding the underlying loss experience of the policies written with dividend provisions and can estimate future dividend payments from the policy terms. | |
Earnings Per Share | Earnings Per Share |
The Company computes earnings per share (EPS) in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 260, Earnings Per Share. Additionally, during 2013, the Company applied the “two-class method” in computing basic and diluted earnings per share as a result of the participating unvested common shares which contained nonforfeitable rights to dividends during this period. As of January 1, 2014, the Company no longer has participating unvested common shares which contain nonforfeitable rights to dividends and now applies the treasury stock method in computing basic and diluted earnings per share. | |
Under the two-class method, net income available to common and participating common shareholders is reduced by the amount of dividends declared in the current period and by the contractual amount of dividends that must be paid for the current period related to the Company’s common and participating common shares. Participating common shares include unvested share-based payment awards that contain nonforfeitable rights to dividends, whether paid or unpaid. Any remaining undistributed earnings are allocated to the common and participating common shareholders to the extent that each security shares in earnings as if all of the earnings for the period had been distributed. The amount of earnings allocable to each security is divided by the number of outstanding shares of the security to which the earnings are allocated to determine the EPS for the security. In a period of loss, no losses are allocated to the participating common shareholders. Instead, all such losses are allocated to the common shareholders. | |
Basic EPS is calculated by dividing income available to common shareholders by the weighted-average number of common shares outstanding during the period. The diluted EPS calculation includes potential common shares assumed issued under the treasury stock method, which reflects the potential dilution that would occur if any outstanding options or warrants were exercised or restricted stock becomes vested, and includes the “if converted” method for participating securities if the effect is dilutive. We determine diluted EPS as the more dilutive result of either the treasury method or the two-class method. | |
Share-Based Compensation | Share-Based Compensation |
The Company recognizes the impact of its share-based compensation in accordance with FASB ASC Topic 718, Compensation-Stock Compensation. All share-based grants are recognized as compensation expense over the vesting period. The target value of long-term incentive awards are recognized as compensation over the performance period. | |
Fair Value Measurements | The Company carries available-for-sale securities at fair value in our consolidated financial statements and determines fair value measurements and disclosure in accordance with FASB ASC Topic 820, Fair Value Measurements and Disclosures. |
The Company determines the fair values of its financial instruments based on the fair value hierarchy established in ASC Topic 820, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard defines fair value, describes three levels of inputs that may be used to measure fair value, and expands disclosures about fair value measurements. |
Investments_Tables
Investments (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Gross Unrealized Gains and Losses and Amortized Cost and Fair Value of Investments Classified as Held-to-maturity | The gross unrealized gains and losses on, and the amortized cost and fair value of, those investments classified as held-to-maturity at December 31, 2014 are summarized as follows: | ||||||||||||||||||||||||
Amortized | Gross | Gross | Fair Value | ||||||||||||||||||||||
Cost | Unrealized | Unrealized | |||||||||||||||||||||||
Gains | Losses | ||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
States and political subdivisions | $ | 385,623 | $ | 20,100 | $ | (58) | $ | 405,665 | |||||||||||||||||
Corporate bonds | 176,880 | 374 | (520) | 176,734 | |||||||||||||||||||||
Commercial mortgage-backed securities | 46,662 | 1,867 | — | 48,529 | |||||||||||||||||||||
U.S. agency-based mortgage-backed securities | 16,972 | 1,702 | (2) | 18,672 | |||||||||||||||||||||
U.S. Treasury securities and obligations of U.S. Government agencies | 10,697 | 1,097 | (2) | 11,792 | |||||||||||||||||||||
Asset-backed securities | 2,797 | 264 | (82) | 2,979 | |||||||||||||||||||||
Totals | $ | 639,631 | $ | 25,404 | $ | (664) | $ | 664,371 | |||||||||||||||||
The gross unrealized gains and losses on, and the amortized cost and fair value of, those investments classified as held-to-maturity at December 31, 2013 are summarized as follows: | |||||||||||||||||||||||||
Amortized | Gross | Gross | Fair Value | ||||||||||||||||||||||
Cost | Unrealized | Unrealized | |||||||||||||||||||||||
Gains | Losses | ||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
States and political subdivisions | $ | 381,674 | $ | 18,634 | $ | (1,153) | $ | 399,155 | |||||||||||||||||
Corporate bonds | 67,423 | 861 | (41) | 68,243 | |||||||||||||||||||||
Commercial mortgage-backed securities | 50,813 | 3,431 | — | 54,244 | |||||||||||||||||||||
U.S. agency-based mortgage-backed securities | 21,775 | 1,790 | — | 23,565 | |||||||||||||||||||||
U.S. Treasury securities and obligations of U.S. Government agencies | 11,514 | 1,002 | — | 12,516 | |||||||||||||||||||||
Asset-backed securities | 3,384 | 216 | (144) | 3,456 | |||||||||||||||||||||
Totals | $ | 536,583 | $ | 25,934 | $ | (1,338) | $ | 561,179 | |||||||||||||||||
Gross Unrealized Gains and Losses and Cost or Amortized Cost and Fair Value of Investments Classified as Available-for-sale | The gross unrealized gains and losses on, and the cost or amortized cost and fair value of, those investments classified as available-for-sale at December 31, 2014 are summarized as follows: | ||||||||||||||||||||||||
Cost or | Gross | Gross | Fair Value | ||||||||||||||||||||||
Amortized | Unrealized | Unrealized | |||||||||||||||||||||||
Cost | Gains | Losses | |||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
Fixed maturity: | |||||||||||||||||||||||||
States and political subdivisions | $ | 151,744 | $ | 7,302 | $ | (1,672) | $ | 157,374 | |||||||||||||||||
Corporate bonds | 165,412 | 428 | (470) | 165,370 | |||||||||||||||||||||
U.S. agency-based mortgage-backed securities | 9,848 | 2 | (1,352) | 8,498 | |||||||||||||||||||||
Total fixed maturity | 327,004 | 7,732 | (3,494) | 331,242 | |||||||||||||||||||||
Other investments | 10,000 | 1,748 | — | 11,748 | |||||||||||||||||||||
Equity securities | — | 28 | — | 28 | |||||||||||||||||||||
Totals | $ | 337,004 | $ | 9,508 | $ | (3,494) | $ | 343,018 | |||||||||||||||||
The gross unrealized gains and losses on, and the cost or amortized cost and fair value of, those investments classified as available-for-sale at December 31, 2013 are summarized as follows: | |||||||||||||||||||||||||
Cost or | Gross | Gross | Fair Value | ||||||||||||||||||||||
Amortized | Unrealized | Unrealized | |||||||||||||||||||||||
Cost | Gains | Losses | |||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
Fixed maturity: | |||||||||||||||||||||||||
States and political subdivisions | $ | 154,024 | $ | 1,491 | $ | (5,140) | $ | 150,375 | |||||||||||||||||
Corporate bonds | 80,344 | 445 | (361) | 80,428 | |||||||||||||||||||||
U.S. agency-based mortgage-backed securities | 10,041 | — | (2,967) | 7,074 | |||||||||||||||||||||
Total fixed maturity | 244,409 | 1,936 | (8,468) | 237,877 | |||||||||||||||||||||
Other investments | 10,000 | 591 | — | 10,591 | |||||||||||||||||||||
Equity securities | 9,482 | 387 | (567) | 9,302 | |||||||||||||||||||||
Totals | $ | 263,891 | $ | 2,914 | $ | (9,035) | $ | 257,770 | |||||||||||||||||
A Summary of the Company's Realized Gains and Losses on Sales, Calls or Redemptions of Investments | A summary of the Company’s realized gains and losses on sales, calls or redemptions of investments for 2014, 2013 and 2012 is as follows: | ||||||||||||||||||||||||
Fixed | Equity | Other | Total | ||||||||||||||||||||||
Maturity | Securities | ||||||||||||||||||||||||
Securities | |||||||||||||||||||||||||
Available | |||||||||||||||||||||||||
for Sale | |||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
Year ended December 31, 2014 | |||||||||||||||||||||||||
Proceeds from sales | $ | 768 | $ | 9,780 | $ | — | $ | 10,548 | |||||||||||||||||
Gross realized investment gains | $ | 1 | $ | 749 | $ | — | $ | 750 | |||||||||||||||||
Gross realized investment (losses) | — | (451 | ) | — | (451 | ) | |||||||||||||||||||
Net realized investment gains | 1 | 298 | — | 299 | |||||||||||||||||||||
Impairments | (222 | ) | — | — | (222 | ) | |||||||||||||||||||
Other, including gains on calls and redemptions | 244 | — | 376 | 620 | |||||||||||||||||||||
Net realized investment gains | $ | 23 | $ | 298 | $ | 376 | $ | 697 | |||||||||||||||||
Year ended December 31, 2013 | |||||||||||||||||||||||||
Proceeds from sales | $ | 2,090 | $ | 8,900 | $ | — | $ | 10,990 | |||||||||||||||||
Gross realized investment gains | $ | 90 | $ | 1,264 | $ | — | $ | 1,354 | |||||||||||||||||
Gross realized investment (losses) | — | (471 | ) | — | (471 | ) | |||||||||||||||||||
Net realized investment gains | 90 | 793 | — | 883 | |||||||||||||||||||||
Impairments | — | (2,229 | ) | — | (2,229 | ) | |||||||||||||||||||
Other, including gains on calls and redemptions | 38 | — | 97 | 135 | |||||||||||||||||||||
Net realized investment gains (losses) | $ | 128 | $ | (1,436 | ) | $ | 97 | $ | (1,211 | ) | |||||||||||||||
Year ended December 31, 2012 | |||||||||||||||||||||||||
Proceeds from sales | $ | 22,363 | $ | 10,777 | $ | — | $ | 33,140 | |||||||||||||||||
Gross realized investment gains | $ | 1,555 | $ | 1,186 | $ | — | $ | 2,741 | |||||||||||||||||
Gross realized investment (losses) | — | — | — | — | |||||||||||||||||||||
Net realized investment gains | 1,555 | 1,186 | — | 2,741 | |||||||||||||||||||||
Other, including gains on calls and redemptions | 15 | — | 223 | 238 | |||||||||||||||||||||
Net realized investment gains | $ | 1,570 | $ | 1,186 | $ | 223 | $ | 2,979 | |||||||||||||||||
Major Categories of the Company's Net Investment Income | Major categories of the Company’s net investment income are summarized as follows: | ||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
Gross investment income: | |||||||||||||||||||||||||
Fixed maturity securities | $ | 26,622 | $ | 26,422 | $ | 27,167 | |||||||||||||||||||
Short-term investments and cash and cash equivalents | 426 | 634 | 489 | ||||||||||||||||||||||
Equity securities | 232 | 543 | 446 | ||||||||||||||||||||||
Other investments | 1,611 | 803 | — | ||||||||||||||||||||||
Total gross investment income | 28,891 | 28,402 | 28,102 | ||||||||||||||||||||||
Investment expenses | (1,677 | ) | (1,373 | ) | (1,084 | ) | |||||||||||||||||||
Net investment income | $ | 27,214 | $ | 27,029 | $ | 27,018 | |||||||||||||||||||
Investment Securities Continuous Unrealized Loss Position | The following table summarizes the fair value and gross unrealized losses on securities, aggregated by major investment category and length of time that the individual securities have been in a continuous unrealized loss position: | ||||||||||||||||||||||||
Less Than 12 Months | 12 Months or Greater | Total | |||||||||||||||||||||||
Fair Value of | Gross | Fair Value of | Gross | Fair Value of | Gross | ||||||||||||||||||||
Investments | Unrealized | Investments | Unrealized | Investments | Unrealized | ||||||||||||||||||||
with | Losses | with | Losses | with | Losses | ||||||||||||||||||||
Unrealized | Unrealized | Unrealized | |||||||||||||||||||||||
Losses | Losses | Losses | |||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||
Held-to-Maturity | |||||||||||||||||||||||||
Fixed maturity securities: | |||||||||||||||||||||||||
Corporate bonds | $ | 129,788 | $ | 520 | $ | — | $ | — | $ | 129,788 | $ | 520 | |||||||||||||
States and political subdivisions | 16,896 | 58 | — | — | 16,896 | 58 | |||||||||||||||||||
U.S. Treasury securities and obligations of U.S. Government agencies | 3,385 | 2 | — | — | 3,385 | 2 | |||||||||||||||||||
U.S. agency-based mortgage-backed securities | 78 | 2 | — | — | 78 | 2 | |||||||||||||||||||
Asset-backed securities | — | — | 1,662 | 82 | 1,662 | 82 | |||||||||||||||||||
Total held-to-maturity securities | 150,147 | 582 | 1,662 | 82 | 151,809 | 664 | |||||||||||||||||||
Available-for Sale | |||||||||||||||||||||||||
Fixed maturity securities: | |||||||||||||||||||||||||
Corporate bonds | $ | 106,185 | $ | 470 | $ | — | $ | — | $ | 106,185 | $ | 470 | |||||||||||||
States and political subdivisions | 3,810 | 6 | 10,347 | 1,666 | 14,157 | 1,672 | |||||||||||||||||||
U.S. agency-based mortgage-backed securities | 627 | 11 | 7,757 | 1,341 | 8,384 | 1,352 | |||||||||||||||||||
Total available-for-sale securities | 110,622 | 487 | 18,104 | 3,007 | 128,726 | 3,494 | |||||||||||||||||||
Total | $ | 260,769 | $ | 1,069 | $ | 19,766 | $ | 3,089 | $ | 280,535 | $ | 4,158 | |||||||||||||
December 31, 2013 | |||||||||||||||||||||||||
Held-to-Maturity | |||||||||||||||||||||||||
Fixed maturity securities: | |||||||||||||||||||||||||
Corporate bonds | $ | 14,090 | $ | 41 | $ | — | $ | — | $ | 14,090 | $ | 41 | |||||||||||||
States and political subdivisions | 54,895 | 1,147 | 311 | 6 | 55,206 | 1,153 | |||||||||||||||||||
Asset-backed securities | — | — | 1,916 | 144 | 1,916 | 144 | |||||||||||||||||||
Total held-to-maturity securities | 68,985 | 1,188 | 2,227 | 150 | 71,212 | 1,338 | |||||||||||||||||||
Available-for Sale | |||||||||||||||||||||||||
Fixed maturity securities: | |||||||||||||||||||||||||
Corporate bonds | $ | 29,691 | $ | 361 | $ | — | $ | — | $ | 29,691 | $ | 361 | |||||||||||||
States and political subdivisions | 101,908 | 4,798 | 1,753 | 342 | 103,661 | 5,140 | |||||||||||||||||||
U.S. agency-based mortgage-backed securities | 1,303 | 465 | 5,772 | 2,502 | 7,075 | 2,967 | |||||||||||||||||||
Equity securities | 5,205 | 567 | — | — | 5,205 | 567 | |||||||||||||||||||
Total available-for-sale securities | 138,107 | 6,191 | 7,525 | 2,844 | 145,632 | 9,035 | |||||||||||||||||||
Total | $ | 207,092 | $ | 7,379 | $ | 9,752 | $ | 2,994 | $ | 216,844 | $ | 10,373 | |||||||||||||
Held-to-Maturity Securities [Member] | |||||||||||||||||||||||||
Summary of the Amortized Cost and Fair Value of Investments in Fixed Maturity Securities, by Contractual Maturity | A summary of the amortized cost and fair value of investments in fixed maturity securities, classified as held-to-maturity at December 31, 2014, by contractual maturity, is as follows: | ||||||||||||||||||||||||
Amortized | Fair Value | ||||||||||||||||||||||||
Cost | |||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
Maturity: | |||||||||||||||||||||||||
Within one year | $ | 120,896 | $ | 121,909 | |||||||||||||||||||||
After one year through five years | 262,486 | 271,332 | |||||||||||||||||||||||
After five years through ten years | 102,703 | 110,139 | |||||||||||||||||||||||
After ten years | 87,115 | 90,811 | |||||||||||||||||||||||
U.S. agency-based mortgage-backed securities | 16,972 | 18,672 | |||||||||||||||||||||||
Commercial mortgage-backed securities | 46,662 | 48,529 | |||||||||||||||||||||||
Asset-backed securities | 2,797 | 2,979 | |||||||||||||||||||||||
Totals | $ | 639,631 | $ | 664,371 | |||||||||||||||||||||
Available-for-Sale Securities [Member] | |||||||||||||||||||||||||
Summary of the Amortized Cost and Fair Value of Investments in Fixed Maturity Securities, by Contractual Maturity | A summary of the amortized cost and fair value of investments in fixed maturity securities, classified as available-for-sale at December 31, 2014, by contractual maturity, is as follows: | ||||||||||||||||||||||||
Amortized | Fair Value | ||||||||||||||||||||||||
Cost | |||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
Maturity: | |||||||||||||||||||||||||
Within one year | $ | 51,403 | $ | 51,448 | |||||||||||||||||||||
After one year through five years | 127,842 | 128,060 | |||||||||||||||||||||||
After five years through ten years | 10,056 | 10,275 | |||||||||||||||||||||||
After ten years | 127,855 | 132,961 | |||||||||||||||||||||||
U.S. agency-based mortgage-backed securities | 9,848 | 8,498 | |||||||||||||||||||||||
Totals | $ | 327,004 | $ | 331,242 | |||||||||||||||||||||
Premiums_Receivable_Tables
Premiums Receivable (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Insurance [Abstract] | |||||||||||||
Components of Premiums Receivable | The balance is shown net of the allowance for doubtful accounts. The components of premiums receivable are shown below: | ||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
(in thousands) | |||||||||||||
Premiums receivable | $ | 184,128 | $ | 177,037 | |||||||||
Allowance for doubtful accounts | (5,211 | ) | (5,458 | ) | |||||||||
Premiums receivable, net | $ | 178,917 | $ | 171,579 | |||||||||
Summarizes the Activity in the Allowance for Doubtful Accounts | The following summarizes the activity in the allowance for doubtful accounts: | ||||||||||||
December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(in thousands) | |||||||||||||
Balance, beginning of year | $ | 5,458 | $ | 6,424 | $ | 5,573 | |||||||
Provision for bad debts (1) | 673 | 52 | 2,230 | ||||||||||
Write-offs | (920 | ) | (1,018 | ) | (1,379 | ) | |||||||
Balance, end of year | $ | 5,211 | $ | 5,458 | $ | 6,424 | |||||||
(1) Includes a one-time adjustment of $1.7 million in 2013 as a result of a change in accounting estimate of uncollectible accounts based on historical experience. |
Deferred_Policy_Acquisition_Co1
Deferred Policy Acquisition Costs (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Insurance [Abstract] | |||||||||||||
Schedule of Major Categories of the Deferred Policy Acquisition Costs | Major categories of the Company’s deferred policy acquisition costs are summarized as follows: | ||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
(in thousands) | |||||||||||||
Agents’ commissions | $ | 15,351 | $ | 15,511 | |||||||||
Premium taxes | 3,100 | 2,526 | |||||||||||
Deferred underwriting expenses | 1,198 | 1,134 | |||||||||||
Total deferred policy acquisition costs | $ | 19,649 | $ | 19,171 | |||||||||
Schedule of the Activity in the Deferred Policy Acquisition Costs | The following summarizes the activity in the deferred policy acquisition costs: | ||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(in thousands) | |||||||||||||
Balance, beginning of year | $ | 19,171 | $ | 18,419 | $ | 16,578 | |||||||
Policy acquisition costs deferred | 44,295 | 41,278 | 40,961 | ||||||||||
Amortization expense during the year | (43,817 | ) | (40,526 | ) | (39,120 | ) | |||||||
Balance, end of year | $ | 19,649 | $ | 19,171 | $ | 18,419 | |||||||
Property_and_Equipment_Tables
Property and Equipment (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Property, Plant and Equipment [Abstract] | |||||||||
Schedule of Property and Equipment | Property and equipment consist of the following: | ||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
(in thousands) | |||||||||
Land and office building | $ | 7,758 | $ | 7,749 | |||||
Furniture and equipment | 6,593 | 6,653 | |||||||
Software | 9,875 | 9,615 | |||||||
Automobiles | 73 | 81 | |||||||
24,299 | 24,098 | ||||||||
Accumulated depreciation | (17,059 | ) | (16,549 | ) | |||||
Property and equipment, net | $ | 7,240 | $ | 7,549 | |||||
Schedule of Future Minimum Lease Payments for Capital Lease Obligations | Future minimum lease payments related to the capital lease obligations are detailed below (in thousands): | ||||||||
2015 | $ | 38 | |||||||
2016 | 39 | ||||||||
2017 | 29 | ||||||||
Present value of net minimum lease payments | $ | 106 | |||||||
Reinsurance_Tables
Reinsurance (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Insurance [Abstract] | |||||||||||||||||||||||||
Schedule of the Effect of Reinsurance on Premiums Written and Earned | The effect of reinsurance on premiums written and earned in 2014, 2013 and 2012 was as follows: | ||||||||||||||||||||||||
2014 Premiums | 2013 Premiums | 2012 Premiums | |||||||||||||||||||||||
Written | Earned | Written | Earned | Written | Earned | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
Gross | $ | 393,819 | $ | 389,540 | $ | 372,177 | $ | 348,408 | $ | 328,823 | $ | 306,994 | |||||||||||||
Ceded | (13,793 | ) | (13,793 | ) | (18,425 | ) | (18,425 | ) | (16,305 | ) | (16,305 | ) | |||||||||||||
Net premiums | $ | 380,026 | $ | 375,747 | $ | 353,752 | $ | 329,983 | $ | 312,518 | $ | 290,689 | |||||||||||||
Schedule of the Amounts Recoverable from Reinsurers | The amounts recoverable from reinsurers consist of the following: | ||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
Unpaid losses recoverable: | |||||||||||||||||||||||||
Case basis | $ | 34,196 | $ | 31,850 | |||||||||||||||||||||
Incurred but not reported | 25,138 | 16,849 | |||||||||||||||||||||||
Paid losses recoverable | 424 | 497 | |||||||||||||||||||||||
Experience-rated commissions recoverable | 26,130 | 26,130 | |||||||||||||||||||||||
Total | $ | 85,888 | $ | 75,326 | |||||||||||||||||||||
Schedule of Unsecured Reinsurance Recoverables from Reinsurers | The A.M. Best Company rating for the reinsurer is shown parenthetically. | ||||||||||||||||||||||||
Hannover Reinsurance (Ireland) Limited (A+) | $ | 27,387 | |||||||||||||||||||||||
Odyssey America Reinsurance Corporation (A) | 13,523 | ||||||||||||||||||||||||
Minnesota Workers’ Compensation Reinsurance Association (NR) | 8,518 | ||||||||||||||||||||||||
Tokio Millenium Reinsurance Limited (A++) | 6,410 | ||||||||||||||||||||||||
Clearwater Insurance Company (bbb) | 6,229 | ||||||||||||||||||||||||
Other reinsurers | 23,821 | ||||||||||||||||||||||||
Total reinsurance recoverables | 85,888 | ||||||||||||||||||||||||
Letters of credit and funds held | (47,833 | ) | |||||||||||||||||||||||
Total unsecured reinsurance recoverables | $ | 38,055 | |||||||||||||||||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||
Schedule of Company's Deferred Income Tax Assets and Liabilities | The Company’s deferred income tax assets and liabilities are as follows: | ||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
(in thousands) | |||||||||||||
Deferred income tax assets: | |||||||||||||
Discounting of net unpaid loss and loss adjustment expenses | $ | 17,952 | $ | 17,493 | |||||||||
Unearned premiums | 14,788 | 14,008 | |||||||||||
Accrued expenses and other | 4,306 | 4,336 | |||||||||||
State income tax | 591 | — | |||||||||||
Accrued policyholder dividends | 438 | 684 | |||||||||||
Impaired securities | 80 | 874 | |||||||||||
Accrued insurance-related assessments | 4,804 | 3,989 | |||||||||||
Total deferred tax assets | 42,959 | 41,384 | |||||||||||
Deferred income tax liabilities: | |||||||||||||
Deferred policy acquisition costs | (8,815 | ) | (7,937 | ) | |||||||||
Unrealized gain (loss) on securities available-for-sale | (1,513 | ) | 2,313 | ||||||||||
Property and equipment and other | (331 | ) | (266 | ) | |||||||||
Salvage and subrogation | (289 | ) | (288 | ) | |||||||||
Guaranty fund related items | (780 | ) | (1,561 | ) | |||||||||
Total deferred income tax liabilities | (11,728 | ) | (7,739 | ) | |||||||||
Net deferred income taxes | $ | 31,231 | $ | 33,645 | |||||||||
Components of Consolidated Income Tax Expense (Benefit) | The components of consolidated income tax expense (benefit) are as follows: | ||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(in thousands) | |||||||||||||
Current: | |||||||||||||
Federal | $ | 20,811 | $ | 15,270 | $ | 7,373 | |||||||
State | 684 | 504 | 302 | ||||||||||
21,495 | 15,774 | 7,675 | |||||||||||
Deferred: | |||||||||||||
Federal | (821 | ) | (207 | ) | 115 | ||||||||
State | (591 | ) | — | — | |||||||||
(1,412 | ) | (207 | ) | 115 | |||||||||
Total | $ | 20,083 | $ | 15,567 | $ | 7,790 | |||||||
Income Tax Expense from Operations from the Amount Computed by Applying the U.S. Federal Income Tax Statutory Rate of 35% to Income Before Income Taxes | Income tax expense from operations is different from the amount computed by applying the U.S. federal income tax statutory rate of 35% to income before income taxes as follows: | ||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(in thousands) | |||||||||||||
Income tax computed at federal statutory tax rate | $ | 25,812 | $ | 20,721 | $ | 13,000 | |||||||
Tax-exempt interest, net | (5,620 | ) | (5,458 | ) | (5,333 | ) | |||||||
State income tax | (146 | ) | 504 | 302 | |||||||||
Dividends received deduction | (60 | ) | (113 | ) | (79 | ) | |||||||
Other | 97 | (87 | ) | (100 | ) | ||||||||
$ | 20,083 | $ | 15,567 | $ | 7,790 | ||||||||
Loss_and_Loss_Adjustment_Expen1
Loss and Loss Adjustment Expenses (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Insurance [Abstract] | |||||||||||||
Reconciliation of Beginning and Ending Reserve Balances, Net of Related Amounts Recoverable from Reinsurers | The following table provides a reconciliation of the beginning and ending reserve balances, net of related amounts recoverable from reinsurers, for 2014, 2013 and 2012: | ||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(in thousands) | |||||||||||||
Balance, beginning of period | $ | 614,557 | $ | 570,450 | $ | 538,214 | |||||||
Less amounts recoverable from reinsurers on unpaid loss and loss adjustment expenses | 48,699 | 55,190 | 60,937 | ||||||||||
Net balance, beginning of period | 565,858 | 515,260 | 477,277 | ||||||||||
Add incurred related to: | |||||||||||||
Current accident year | 268,633 | 241,584 | 222,393 | ||||||||||
Prior accident years | (23,717 | ) | (12,611 | ) | (2,490 | ) | |||||||
Total incurred | 244,916 | 228,973 | 219,903 | ||||||||||
Less paid related to: | |||||||||||||
Current accident year | 52,848 | 51,169 | 50,423 | ||||||||||
Prior accident years | 129,658 | 127,206 | 131,497 | ||||||||||
Total paid | 182,506 | 178,375 | 181,920 | ||||||||||
Net balance, end of period | 628,268 | 565,858 | 515,260 | ||||||||||
Add amounts recoverable from reinsurers on unpaid loss and loss adjustment expenses | 59,334 | 48,699 | 55,190 | ||||||||||
Balance, end of period | $ | 687,602 | $ | 614,557 | $ | 570,450 | |||||||
Summary Exposures to Various Asbestos Related Claims | The following table details our exposures to various asbestos related claims: | ||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(in thousands) | |||||||||||||
Reserves for loss and LAE at beginning of year | $ | 219 | $ | 167 | $ | — | |||||||
Incurred losses and LAE during the current year | 882 | 53 | 168 | ||||||||||
Loss and LAE payments | (282 | ) | (1 | ) | (1 | ) | |||||||
Reserves for loss and LAE at end of year | $ | 819 | $ | 219 | $ | 167 | |||||||
Statutory_Accounting_and_Regul1
Statutory Accounting and Regulatory Requirements (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Text Block [Abstract] | |||||||||||||
Insurance Subsidiaries | Statutory-basis shareholders’ capital and surplus at December 31, 2014, 2013 and 2012 of the directly owned insurance subsidiary, AIIC, and the combined statutory-basis net income and realized investment gains for all AMERISAFE’s insurance subsidiaries for the three years in the period ended December 31, 2014, were as follows (in thousands): | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Capital and surplus | $ | 377,742 | $ | 354,293 | $ | 323,932 | |||||||
Net income | 50,205 | 44,751 | 31,059 | ||||||||||
Realized investment gains (losses) | 693 | (1,214 | ) | 2,958 |
Stock_Options_and_Restricted_S1
Stock Options and Restricted Stock (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||
Stock Options Outstanding | The following table summarizes information about the stock options outstanding under the 2005 Incentive Plan at December 31, 2012, 2013 and 2014: | ||||||||||||
Shares | Weighted- | Weighted- | |||||||||||
Average | Average | ||||||||||||
Exercise | Remaining | ||||||||||||
Price | Contractual Life | ||||||||||||
(in years) | |||||||||||||
Outstanding at January 1, 2012 | 919,348 | 10.37 | 5.5 | ||||||||||
Granted | — | — | — | ||||||||||
Exercised | (86,800 | ) | 9 | — | |||||||||
Canceled, forfeited, or expired | — | — | — | ||||||||||
Outstanding at December 31, 2012 | 832,548 | 10.51 | 4.6 | ||||||||||
Exercisable at December 31, 2012 | 779,948 | 10.08 | 4.4 | ||||||||||
Outstanding at January 1, 2013 | 832,548 | 10.51 | 4.6 | ||||||||||
Granted | — | — | — | ||||||||||
Exercised | (256,300 | ) | 9 | — | |||||||||
Canceled, forfeited, or expired | — | — | — | ||||||||||
Outstanding at December 31, 2013 | 576,248 | 11.12 | 3.8 | ||||||||||
Exercisable at December 31, 2013 | 557,448 | 10.91 | 3.7 | ||||||||||
Outstanding at January 1, 2014 | 576,248 | 11.12 | 3.8 | ||||||||||
Granted | — | — | — | ||||||||||
Exercised | (294,165 | ) | 9.09 | — | |||||||||
Canceled, forfeited, or expired | — | — | — | ||||||||||
Outstanding at December 31, 2014 | 282,083 | 11.3 | 3.6 | ||||||||||
Exercisable at December 31, 2014 | 282,083 | 11.3 | 3.6 | ||||||||||
Weighted Average Grant Date Fair Values of Options Granted | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(in thousands) | |||||||||||||
Cash received from option exercises | $ | 2,674 | $ | 2,344 | $ | 781 | |||||||
Total tax benefits realized for tax deductions from options exercised | 2,797 | 2,002 | 405 | ||||||||||
Total intrinsic value of options exercised | 9,145 | 6,654 | 1,468 | ||||||||||
Grant date fair value of options vested | 144 | 226 | 310 | ||||||||||
Aggregate intrinsic value of vested options outstanding | 8,763 | 17,467 | 13,393 | ||||||||||
Restricted Stock Outstanding | The following table summarizes information about the restricted stock outstanding under the 2005 Incentive Plan at December 31, 2014: | ||||||||||||
Shares | Weighted-Average | ||||||||||||
Grant-Date Fair | |||||||||||||
Value per Share | |||||||||||||
Nonvested balance at January 1, 2012 | — | — | |||||||||||
Granted | 8,000 | 27.47 | |||||||||||
Vested | — | — | |||||||||||
Forfeited | — | — | |||||||||||
Nonvested balance at December 31, 2012 | 8,000 | 27.47 | |||||||||||
Granted | — | — | |||||||||||
Vested | (1,600 | ) | 27.47 | ||||||||||
Forfeited | — | — | |||||||||||
Nonvested balance at December 31, 2013 | 6,400 | 27.47 | |||||||||||
Granted | — | — | |||||||||||
Vested | (800 | ) | 27.35 | ||||||||||
Forfeited | (3,200 | ) | 27.59 | ||||||||||
Nonvested balance at December 31, 2014 | 2,400 | 27.35 | |||||||||||
Shares | Weighted-Average | ||||||||||||
Grant-Date Fair | |||||||||||||
Value per Share | |||||||||||||
Nonvested balance at January 1, 2012 | 9,513 | 22.06 | |||||||||||
Granted | 7,833 | 26.79 | |||||||||||
Vested | (9,513 | ) | 22.06 | ||||||||||
Forfeited | — | — | |||||||||||
Nonvested balance at December 31, 2012 | 7,833 | 26.79 | |||||||||||
Granted | 5,376 | 33.47 | |||||||||||
Vested | (7,833 | ) | 26.79 | ||||||||||
Forfeited | — | — | |||||||||||
Nonvested balance at December 31, 2013 | 5,376 | 33.47 | |||||||||||
Granted | 5,229 | 37,27 | |||||||||||
Vested | (5,376 | ) | 33.47 | ||||||||||
Forfeited | — | — | |||||||||||
Nonvested balance at December 31, 2014 | 5,229 | 37.27 | |||||||||||
Shares | Weighted-Average | ||||||||||||
Grant-Date Fair | |||||||||||||
Value per Share | |||||||||||||
Nonvested balance at January 1, 2012 | — | — | |||||||||||
Granted | 2,331 | 26.79 | |||||||||||
Vested | — | — | |||||||||||
Forfeited | — | — | |||||||||||
Nonvested balance at December 31, 2012 | 2,331 | 26.79 | |||||||||||
Granted | 80,278 | 34.14 | |||||||||||
Vested | — | — | |||||||||||
Forfeited | — | — | |||||||||||
Nonvested balance at December 31, 2013 | 82,609 | 33.93 | |||||||||||
Granted | 4,312 | 43.83 | |||||||||||
Vested | (14,000 | ) | 33.58 | ||||||||||
Forfeited | — | — | |||||||||||
Nonvested balance at December 31, 2014 | 72,921 | 34.59 | |||||||||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Earnings Per Share [Abstract] | |||||||||||||
Calculation of Basic and Diluted Earnings Per Share | The calculation of basic and diluted EPS for the years ended December 31, 2014, 2013 and 2012 are presented below. | ||||||||||||
For the Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(in thousands, except earnings per share amounts) | |||||||||||||
Basic EPS: | |||||||||||||
Net income, as reported | $ | 53,666 | $ | 43,637 | $ | 29,353 | |||||||
Less allocated income to participating securities | — | 142 | 22 | ||||||||||
Net income available to common shareholders – basic | $ | 53,666 | $ | 43,495 | $ | 29,331 | |||||||
Basic weighted-average common shares | 18,646 | 18,373 | 18,166 | ||||||||||
Basic earnings per share | $ | 2.88 | $ | 2.37 | $ | 1.62 | |||||||
Diluted EPS: | |||||||||||||
Net income available to common shareholders - diluted | $ | 53,666 | $ | 43,495 | $ | 29,331 | |||||||
Diluted weighted average common shares: | |||||||||||||
Weighted average common shares | 18,646 | 18,373 | 18,166 | ||||||||||
Stock options and performance shares | 282 | 376 | 409 | ||||||||||
Diluted weighted average common shares | 18,928 | 18,749 | 18,575 | ||||||||||
Diluted earnings per common share | $ | 2.84 | $ | 2.32 | $ | 1.58 | |||||||
Calculation of Percentage of Net Income Allocable to Common Shareholders | The table below sets forth the reconciliation of the weighted average shares used for the basic and diluted EPS calculation. Under the two-class method, unvested stock options, and out-of-money vested stock options are not considered to be participating securities. | ||||||||||||
Years Ended | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Basic weighted average common shares | 18,646,128 | 18,373,033 | 18,166,261 | ||||||||||
Add: Other common shares eligible for common dividends: | |||||||||||||
Weighted average restricted shares and stock options (including tax benefit component) | 282,376 | 375,776 | 408,930 | ||||||||||
Diluted weighted average common shares | 18,928,504 | 18,748,809 | 18,575,191 | ||||||||||
Comprehensive_Income_and_Accum1
Comprehensive Income and Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended | ||||||||||||||
Dec. 31, 2014 | |||||||||||||||
Equity [Abstract] | |||||||||||||||
Schedule of Changes in Accumulated Other Comprehensive Income (AOCI) | The following table illustrates the changes in the balance of each component of accumulated other comprehensive income (loss) for each period presented in the financial statements. | ||||||||||||||
Year Ended December 31, | |||||||||||||||
2014 | 2013 | 2012 | |||||||||||||
(in thousands) | |||||||||||||||
Beginning balance | $ | (4,295 | ) | $ | 2,979 | $ | 2,215 | ||||||||
Other comprehensive income (loss) before reclassification | 6,558 | (7,525 | ) | 1,552 | |||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | 547 | 251 | (788 | ) | |||||||||||
Net current period other comprehensive income (loss) | 7,105 | (7,274 | ) | 764 | |||||||||||
Ending balance | $ | 2,810 | $ | (4,295 | ) | $ | 2,979 | ||||||||
Reclassification Out of Accumulated Other Comprehensive Income | The effects of reclassifications out of accumulated other comprehensive income (loss) by the respective line items of net income are presented in the following table. | ||||||||||||||
Component of Accumulated Other | Year Ended December 31, | Affected line item in the statement of | |||||||||||||
Comprehensive Income (Loss) | income | ||||||||||||||
2014 | 2013 | 2012 | |||||||||||||
(in thousands) | |||||||||||||||
Unrealized gains (losses) on available-for-sale securities | $ | (825 | ) | $ | 30 | $ | 1,211 | Net realized gains/(losses) on investments | |||||||
Other-than-temporary impairment | (16 | ) | (416) | — | Net realized gains/(losses) on investments | ||||||||||
(841 | ) | (386) | 1,211 | Income before income taxes | |||||||||||
294 | 135 | (423 | ) | Income tax expense | |||||||||||
$ | (547 | ) | $ | (251) | $ | 788 | Net income | ||||||||
Other Comprehensive Income | |||||||||||||||
Pre-Tax | Tax Expense | Net-of-Tax | |||||||||||||
Amount | Amount | ||||||||||||||
(in thousands) | |||||||||||||||
December 31, 2014 | |||||||||||||||
Unrealized gain on securities: | |||||||||||||||
Unrealized gain on available-for-sale securities | $ | 10,133 | $ | 3,546 | $ | 6,587 | |||||||||
Change in unrealized losses on fixed maturity securities with OTTI | 17 | 6 | 11 | ||||||||||||
Less amortization of differences between fair value and amortized cost for fixed maturity security transfer | (44 | ) | (15 | ) | (29 | ) | |||||||||
Reclassification adjustment for gains realized in net income | 825 | 289 | 536 | ||||||||||||
Net unrealized gain | 10,931 | 3,826 | 7,105 | ||||||||||||
Other comprehensive income | $ | 10,931 | $ | 3,826 | $ | 7,105 | |||||||||
December 31, 2013 | |||||||||||||||
Unrealized loss on securities: | |||||||||||||||
Unrealized loss on available-for-sale securities | $ | (11,504 | ) | $ | (4,027 | ) | $ | (7,477 | ) | ||||||
Change in unrealized losses on fixed maturity securities with OTTI | 2 | 1 | 1 | ||||||||||||
Change in unrealized losses on equity securities with OTTI | 416 | 146 | 270 | ||||||||||||
Less amortization of differences between fair value and amortized cost for fixed maturity security transfer | (75 | ) | (26 | ) | (49 | ) | |||||||||
Reclassification adjustment for gains realized in net income | (30 | ) | (11 | ) | (19 | ) | |||||||||
Net unrealized loss | (11,191 | ) | (3,917 | ) | (7,274 | ) | |||||||||
Other comprehensive income | $ | (11,191 | ) | $ | (3,917 | ) | $ | (7,274 | ) | ||||||
December 31, 2012 | |||||||||||||||
Unrealized gain (loss) on securities: | |||||||||||||||
Unrealized gain on available-for-sale securities | $ | 2,555 | $ | 894 | $ | 1,661 | |||||||||
Change in unrealized losses on fixed maturity securities with OTTI | 1 | — | 1 | ||||||||||||
Less amortization of differences between fair value and amortized cost for fixed maturity security transfer | (101 | ) | (35 | ) | (66 | ) | |||||||||
Reclassification adjustment for gains realized in net income | (1,279 | ) | (447 | ) | (832 | ) | |||||||||
Net unrealized gain | 1,176 | 412 | 764 | ||||||||||||
Other comprehensive income | $ | 1,176 | $ | 412 | $ | 764 | |||||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Commitments and Contingencies Disclosure [Abstract] | |||||
Fair Value of Annuities | The following table summarizes (in thousands) the fair value of the annuities at December 31, 2014, that the Company has purchased to satisfy its obligations. The A.M. Best Company rating is shown parenthetically. | ||||
Life Insurance Company | Statement Value | ||||
of Annuities Exceeding | |||||
1% of Statutory Surplus | |||||
Metropolitan Life Insurance Company (A+) | 15,451 | ||||
American General Life Insurance (A) | $ | 15,432 | |||
Pacific Life and Annuity Company (A+) | 15,306 | ||||
New York Life Insurance Company (A++) | 12,131 | ||||
John Hancock Life Insurance Company USA (A+) | 7,854 | ||||
Athene Annuity and Life Assurance Company (B++) | 6,543 | ||||
Liberty Life Assurance Company of Boston (A) | 4,020 | ||||
Other | 17,824 | ||||
$ | 94,561 | ||||
Future Minimum Lease Payments | The Company leases equipment and office space under noncancelable operating leases. At December 31, 2014, future minimum lease payments are as follows (in thousands): | ||||
2015 | $ | 140 | |||
2016 | 121 | ||||
2017 | 98 | ||||
2018 | 67 | ||||
2019 | 6 | ||||
$ | 432 | ||||
Concentration_of_Operations_Ta
Concentration of Operations (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Text Block [Abstract] | |||||||||||||||||||||||||
Net Premiums Earned for the Different Lines of Business | Total net premiums earned for the different lines of business are shown below: | ||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Dollars | Percent | Dollars | Percent | Dollars | Percent | ||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
Workers’ compensation | $ | 375,746 | 100.0% | $ | 329,986 | 100.0% | $ | 290,538 | 99.9% | ||||||||||||||||
General liability | 1 | 0.00% | (3 | ) | 0.00% | 151 | 0.10% | ||||||||||||||||||
Total net premiums earned | $ | 375,747 | 100.00% | $ | 329,983 | 100.00% | $ | 290,689 | 100.00% | ||||||||||||||||
Net Premiums Earned for the Top Ten States | Net premiums earned during 2014, 2013 and 2012 for the top ten states in 2014 and all others are shown below: | ||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Dollars | Percent | Dollars | Percent | Dollars | Percent | ||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
Louisiana | $ | 47,643 | 12.7 | % | $ | 42,110 | 12.8 | % | $ | 31,134 | 10.70% | ||||||||||||||
Georgia | 36,761 | 9.8 | 30,096 | 9.1 | 25,033 | 8.6 | |||||||||||||||||||
Pennsylvania | 35,488 | 9.4 | 28,880 | 8.8 | 24,480 | 8.4 | |||||||||||||||||||
North Carolina | 20,872 | 5.6 | 21,019 | 6.4 | 20,036 | 6.9 | |||||||||||||||||||
Florida | 20,691 | 5.5 | 12,950 | 3.9 | 9,180 | 3.2 | |||||||||||||||||||
Illinois | 20,606 | 5.5 | 18,445 | 5.6 | 18,119 | 6.2 | |||||||||||||||||||
Virginia | 16,764 | 4.5 | 15,751 | 4.8 | 16,144 | 5.6 | |||||||||||||||||||
Oklahoma | 16,599 | 4.4 | 17,473 | 5.3 | 16,157 | 5.6 | |||||||||||||||||||
Texas | 14,846 | 4 | 14,949 | 4.5 | 11,687 | 4.0 | |||||||||||||||||||
Minnesota | 13,159 | 3.5 | 10,470 | 3.2 | 10,094 | 3.5 | |||||||||||||||||||
All others | 132,318 | 35.1 | 117,840 | 35.6 | 108,625 | 37.3 | |||||||||||||||||||
Total net premiums earned | $ | 375,747 | 100 | % | $ | 329,983 | 100 | % | $ | 290,689 | 100.0% | ||||||||||||||
Fair_Values_of_Financial_Instr1
Fair Values of Financial Instruments (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||
Summary of Carrying Values and Corresponding Fair Values for Financial Instruments | The following table summarizes the carrying or reported values and corresponding fair values for financial instruments: | ||||||||||||||||
December 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Carrying | Fair | Carrying | Fair | ||||||||||||||
Amount | Value | Amount | Value | ||||||||||||||
(in thousands) | |||||||||||||||||
Assets: | |||||||||||||||||
Fixed maturity securities—held to maturity | $ | 639,631 | $ | 664,371 | $ | 536,583 | $ | 561,179 | |||||||||
Fixed maturity securities—available for sale | 331,242 | 331,242 | 237,877 | 237,877 | |||||||||||||
Equity securities | 28 | 28 | 9,302 | 9,302 | |||||||||||||
Cash and cash equivalents | 90,956 | 90,956 | 123,077 | 123,077 | |||||||||||||
Short-term investments | 33,684 | 33,684 | 84,422 | 84,422 | |||||||||||||
Other investments | 11,748 | 11,748 | 10,591 | 10,591 | |||||||||||||
Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis | Assets and liabilities measured at fair value on a recurring basis as of December 31, 2014 and 2013 are as follows: | ||||||||||||||||
December 31, 2014 | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total Fair | ||||||||||||||
Inputs | Inputs | Inputs | Value | ||||||||||||||
(in thousands) | |||||||||||||||||
Financial instruments carried at fair value, classified as part of: | |||||||||||||||||
Other investments | $ | — | $ | — | $ | 11,748 | $ | 11,748 | |||||||||
Securities available for sale—equity: | |||||||||||||||||
Domestic common stock | 28 | — | — | 28 | |||||||||||||
Securities available for sale—fixed maturity: | |||||||||||||||||
States and political subdivisions | — | 157,374 | — | 157,374 | |||||||||||||
U.S. agency-based mortgage-backed securities | — | 8,498 | — | 8,498 | |||||||||||||
Corporate bonds | — | 165,370 | — | 165,370 | |||||||||||||
Total available for sale—fixed maturity | $ | — | $ | 331,242 | $ | — | $ | 331,242 | |||||||||
Total available for sale | $ | 28 | $ | 331,242 | $ | 11,748 | $ | 343,018 | |||||||||
December 31, 2013 | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total Fair | ||||||||||||||
Inputs | Inputs | Inputs | Value | ||||||||||||||
(in thousands) | |||||||||||||||||
Financial instruments carried at fair value, classified as part of: | |||||||||||||||||
Other investments | $ | — | $ | — | $ | 10,591 | $ | 10,591 | |||||||||
Securities available for sale—equity | |||||||||||||||||
Domestic common stock | 9,302 | — | — | 9,302 | |||||||||||||
Securities available for sale—fixed maturity | |||||||||||||||||
States and political subdivisions | — | 150,375 | — | 150,375 | |||||||||||||
U.S. agency-based mortgage-backed securities | — | 7,074 | — | 7,074 | |||||||||||||
Corporate bonds | — | 80,428 | — | 80,428 | |||||||||||||
Total available for sale—fixed maturity | $ | — | $ | 237,877 | $ | — | $ | 237,877 | |||||||||
Total available for sale | $ | 9,302 | $ | 237,877 | $ | 10,591 | $ | 257,770 | |||||||||
Schedule of Assets and Liabilities Measured at Amortized Cost | Assets and liabilities measured at amortized cost as of December 31, 2014 and 2013 are as follows: | ||||||||||||||||
December 31, 2014 | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total Fair | ||||||||||||||
Inputs | Inputs | Inputs | Value | ||||||||||||||
(in thousands) | |||||||||||||||||
Securities held-to-maturity—fixed maturity: | |||||||||||||||||
States and political subdivisions | $ | — | $ | 405,665 | $ | — | $ | 405,665 | |||||||||
Corporate bonds | — | 176,734 | — | 176,734 | |||||||||||||
Commercial mortgage-backed securities | — | 48,529 | — | 48,529 | |||||||||||||
U.S. agency-based mortgage-backed securities | — | 18,672 | — | 18,672 | |||||||||||||
U.S. Treasury securities | 11,792 | — | — | 11,792 | |||||||||||||
Asset-backed securities | — | 2,979 | — | 2,979 | |||||||||||||
Total held-to-maturity | $ | 11,792 | $ | 652,579 | $ | — | $ | 664,371 | |||||||||
December 31, 2013 | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total Fair | ||||||||||||||
Inputs | Inputs | Inputs | Value | ||||||||||||||
(in thousands) | |||||||||||||||||
Securities held-to-maturity—fixed maturity: | |||||||||||||||||
States and political subdivisions | $ | — | $ | 399,155 | $ | — | $ | 399,155 | |||||||||
Corporate bonds | — | 68,243 | — | 68,243 | |||||||||||||
Commercial mortgage-backed securities | — | 54,244 | — | 54,244 | |||||||||||||
U.S. agency-based mortgage-backed securities | — | 23,565 | — | 23,565 | |||||||||||||
U.S. Treasury securities | 6,602 | — | — | 6,602 | |||||||||||||
Obligations of the U.S. Government agencies | — | 5,914 | — | 5,914 | |||||||||||||
Asset-backed securities | — | 3,456 | — | 3,456 | |||||||||||||
Total held-to-maturity | $ | 6,602 | $ | 554,577 | $ | — | $ | 561,179 | |||||||||
Summary of Changes in Fair Value of Assets Measured at Fair value | The following table presents summary information regarding changes in the fair value of assets measured at fair value using Level 3 input. | ||||||||||||||||
December 31, 2014 | December 31, 2013 | ||||||||||||||||
(in thousands) | |||||||||||||||||
Balance at beginning of year | $ | 10,591 | $ | — | |||||||||||||
Purchases | — | 10,000 | |||||||||||||||
Total gains unrealized (included in earnings as part of net investment income) | 1,157 | 591 | |||||||||||||||
Balance at end of year | $ | 11,748 | $ | 10,591 | |||||||||||||
Quarterly_Financial_Data_Unaud1
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||
Unaudited Quarterly Financial Data | The following table represents unaudited quarterly financial data for the years ended December 31, 2014 and 2013. | ||||||||||||||||
Three Months Ended | |||||||||||||||||
March 31 | June 30 | September 30 | December 31 | ||||||||||||||
(in thousands, except per share amounts) | |||||||||||||||||
2014 | |||||||||||||||||
Premiums earned | $ | 89,233 | $ | 93,516 | $ | 95,928 | $ | 97,070 | |||||||||
Net investment income | 6,708 | 6,845 | 6,495 | 7,166 | |||||||||||||
Net realized gains (losses) on investments | 101 | 232 | (152 | ) | 516 | ||||||||||||
Total revenues | 96,173 | 100,624 | 102,336 | 104,886 | |||||||||||||
Income before income taxes | 13,404 | 17,061 | 19,348 | 23,936 | |||||||||||||
Net income | 10,549 | 12,773 | 13,479 | 16,865 | |||||||||||||
Net income available to common shareholders | 10,549 | 12,773 | 13,479 | 16,865 | |||||||||||||
Earnings per share: | |||||||||||||||||
Basic | 0.57 | 0.69 | 0.72 | 0.9 | |||||||||||||
Diluted | 0.56 | 0.68 | 0.71 | 0.89 | |||||||||||||
Comprehensive income | 13,789 | 15,789 | 13,596 | 17,597 | |||||||||||||
Extraordinary cash dividends declared per common share | $ | 0.5 | $ | — | $ | — | $ | 1 | |||||||||
Cash dividends declared per common share | $ | 0.12 | $ | 0.12 | $ | 0.12 | $ | 0.12 | |||||||||
2013 | |||||||||||||||||
Premiums earned | $ | 79,709 | $ | 81,983 | $ | 81,596 | $ | 86,695 | |||||||||
Net investment income | 6,670 | 6,649 | 6,947 | 6,763 | |||||||||||||
Net realized gains (losses) on investments | 24 | (1,291 | ) | (654 | ) | 710 | |||||||||||
Total revenues | 86,512 | 87,511 | 88,003 | 94,309 | |||||||||||||
Income before income taxes | 11,080 | 10,647 | 12,447 | 25,030 | |||||||||||||
Net income | 8,851 | 7,644 | 9,699 | 17,443 | |||||||||||||
Net income available to common shareholders | 8,836 | 7,618 | 9,673 | 17,364 | |||||||||||||
Earnings per share: | |||||||||||||||||
Basic | 0.48 | 0.42 | 0.53 | 0.94 | |||||||||||||
Diluted | 0.47 | 0.41 | 0.52 | 0.92 | |||||||||||||
Comprehensive income | 8,306 | 3,584 | 8,654 | 15,819 | |||||||||||||
Cash dividends declared per common share | $ | 0.08 | $ | 0.08 | $ | 0.08 | $ | 0.08 |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Schedule Of Accounting Policies [Line Items] | |||
Percentage of comparable consolidated amounts | 95.00% | 95.00% | 95.00% |
Original maturity of cash equivalent | 3 months | ||
Experience rated commission and other operating costs | $0 | $9,300,000 | $11,100,000 |
Advertising expense | 500,000 | 500,000 | 400,000 |
Premium tax benefit | 4,000,000 | 3,600,000 | |
Assessment Related premium Payment period | 1 year | ||
Assessment Related loss Payment period | 1 year | ||
Land and Office Building [Member] | |||
Schedule Of Accounting Policies [Line Items] | |||
Estimated useful life of assets | 39 years | ||
Limited Partnership [Member] | |||
Schedule Of Accounting Policies [Line Items] | |||
Unfunded commitments | $0 | ||
Maximum [Member] | |||
Schedule Of Accounting Policies [Line Items] | |||
Short-term investments maturity period | P1Y | ||
Maximum [Member] | Other Fixed Assets [Member] | |||
Schedule Of Accounting Policies [Line Items] | |||
Estimated useful life of assets | 7 years | ||
Minimum [Member] | |||
Schedule Of Accounting Policies [Line Items] | |||
Short-term investments maturity period | P3M | ||
Minimum [Member] | Other Fixed Assets [Member] | |||
Schedule Of Accounting Policies [Line Items] | |||
Estimated useful life of assets | 3 years |
Investments_Additional_Informa
Investments - Additional Information (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Individual | ||
Investment [Line Items] | ||
Short term debt | $33,684,000 | $84,422,000 |
Carrying value of investments | 11,700,000 | |
Held to maturity investments | 19,800,000 | |
Individual fixed maturity held in unrealized loss position | 174 | |
Individual fixed maturity held in unrealized loss position | 19 | |
Impairment losses recognized | 222,000 | |
Net carrying value of security held | 2,100,000 | |
Sale of security loss realized | 58,000 | |
Fixed Maturity Securities Available for Sale [Member] | ||
Investment [Line Items] | ||
Impairment losses recognized | 222,000 | |
Corporate Bonds [Member] | ||
Investment [Line Items] | ||
Short term debt | 32,700,000 | 82,700,000 |
Certificates of Deposit [Member] | ||
Investment [Line Items] | ||
Short term debt | 1,000,000 | 900,000 |
Municipal Securities [Member] | ||
Investment [Line Items] | ||
Short term debt | $800,000 |
Investments_Gross_Unrealized_G
Investments - Gross Unrealized Gains and Losses and Amortized Cost and Fair Value of Investments Classified as Held-to-Maturity (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Investment [Line Items] | ||
Held-to-Maturity, Amortized Cost | $639,631 | $536,583 |
Held-to-Maturity, Gross Unrealized Gains | 25,404 | 25,934 |
Held-to-Maturity, Gross Unrealized Losses | -664 | -1,338 |
Held-to-Maturity, Fair Value | 664,371 | 561,179 |
States and Political Subdivisions [Member] | ||
Investment [Line Items] | ||
Held-to-Maturity, Amortized Cost | 385,623 | 381,674 |
Held-to-Maturity, Gross Unrealized Gains | 20,100 | 18,634 |
Held-to-Maturity, Gross Unrealized Losses | -58 | -1,153 |
Held-to-Maturity, Fair Value | 405,665 | 399,155 |
Corporate Bonds [Member] | ||
Investment [Line Items] | ||
Held-to-Maturity, Amortized Cost | 176,880 | 67,423 |
Held-to-Maturity, Gross Unrealized Gains | 374 | 861 |
Held-to-Maturity, Gross Unrealized Losses | -520 | -41 |
Held-to-Maturity, Fair Value | 176,734 | 68,243 |
Commercial Mortgage-Backed Securities [Member] | ||
Investment [Line Items] | ||
Held-to-Maturity, Amortized Cost | 46,662 | 50,813 |
Held-to-Maturity, Gross Unrealized Gains | 1,867 | 3,431 |
Held-to-Maturity, Fair Value | 48,529 | 54,244 |
U.S. Agency-Based Mortgage-Backed Securities [Member] | ||
Investment [Line Items] | ||
Held-to-Maturity, Amortized Cost | 16,972 | 21,775 |
Held-to-Maturity, Gross Unrealized Gains | 1,702 | 1,790 |
Held-to-Maturity, Gross Unrealized Losses | -2 | |
Held-to-Maturity, Fair Value | 18,672 | 23,565 |
U.S. Treasury Securities and Obligations of U.S. Government Agencies [Member] | ||
Investment [Line Items] | ||
Held-to-Maturity, Amortized Cost | 10,697 | 11,514 |
Held-to-Maturity, Gross Unrealized Gains | 1,097 | 1,002 |
Held-to-Maturity, Gross Unrealized Losses | -2 | |
Held-to-Maturity, Fair Value | 11,792 | 12,516 |
Asset-Backed Securities [Member] | ||
Investment [Line Items] | ||
Held-to-Maturity, Amortized Cost | 2,797 | 3,384 |
Held-to-Maturity, Gross Unrealized Gains | 264 | 216 |
Held-to-Maturity, Gross Unrealized Losses | -82 | -144 |
Held-to-Maturity, Fair Value | $2,979 | $3,456 |
Investments_Gross_Unrealized_G1
Investments - Gross Unrealized Gains and Losses and Cost or Amortized Cost and Fair Value of Investments Classified as Available-for-Sale (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Investment [Line Items] | ||
Available-for-Sale, Cost or Amortized Cost | $337,004 | $263,891 |
Available-for-Sale, Gross Unrealized Gains | 9,508 | 2,914 |
Available-for-Sale, Gross Unrealized Losses | -3,494 | -9,035 |
Available-for-Sale, Fair Value | 343,018 | 257,770 |
Total Fixed Maturity [Member] | ||
Investment [Line Items] | ||
Available-for-Sale, Cost or Amortized Cost | 327,004 | 244,409 |
Available-for-Sale, Gross Unrealized Gains | 7,732 | 1,936 |
Available-for-Sale, Gross Unrealized Losses | -3,494 | -8,468 |
Available-for-Sale, Fair Value | 331,242 | 237,877 |
Other Investments [Member] | ||
Investment [Line Items] | ||
Available-for-Sale, Cost or Amortized Cost | 10,000 | 10,000 |
Available-for-Sale, Gross Unrealized Gains | 1,748 | 591 |
Available-for-Sale, Fair Value | 11,748 | 10,591 |
States and Political Subdivisions [Member] | ||
Investment [Line Items] | ||
Available-for-Sale, Cost or Amortized Cost | 151,744 | 154,024 |
Available-for-Sale, Gross Unrealized Gains | 7,302 | 1,491 |
Available-for-Sale, Gross Unrealized Losses | -1,672 | -5,140 |
Available-for-Sale, Fair Value | 157,374 | 150,375 |
Corporate Bonds [Member] | ||
Investment [Line Items] | ||
Available-for-Sale, Cost or Amortized Cost | 165,412 | 80,344 |
Available-for-Sale, Gross Unrealized Gains | 428 | 445 |
Available-for-Sale, Gross Unrealized Losses | -470 | -361 |
Available-for-Sale, Fair Value | 165,370 | 80,428 |
U.S. Agency-Based Mortgage-Backed Securities [Member] | ||
Investment [Line Items] | ||
Available-for-Sale, Cost or Amortized Cost | 9,848 | 10,041 |
Available-for-Sale, Gross Unrealized Gains | 2 | |
Available-for-Sale, Gross Unrealized Losses | -1,352 | -2,967 |
Available-for-Sale, Fair Value | 8,498 | 7,074 |
Equity Securities [Member] | ||
Investment [Line Items] | ||
Available-for-Sale, Cost or Amortized Cost | 9,482 | |
Available-for-Sale, Gross Unrealized Gains | 28 | 387 |
Available-for-Sale, Gross Unrealized Losses | -567 | |
Available-for-Sale, Fair Value | $28 | $9,302 |
Investments_Summary_of_Amortiz
Investments - Summary of Amortized Cost and Fair Value of Investments in Fixed Maturity Securities, Classified as Held-to-Maturity (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Investment [Line Items] | ||
Within one year, Amortized Cost | $120,896 | |
After one year through five years, Amortized Cost | 262,486 | |
After five years through ten years, Amortized Cost | 102,703 | |
After ten years, Amortized Cost | 87,115 | |
Held-to-Maturity, Amortized Cost | 639,631 | 536,583 |
Within one year, Fair Value | 121,909 | |
After one year through five years, Fair Value | 271,332 | |
After five years through ten years, Fair Value | 110,139 | |
After ten years, Fair Value | 90,811 | |
Total, Fair Value | 664,371 | 561,179 |
U.S. Agency-Based Mortgage-Backed Securities [Member] | ||
Investment [Line Items] | ||
Held-to-maturity, Amortized Cost | 16,972 | |
Held-to-maturity, Fair Value | 18,672 | |
Commercial Mortgage-Backed Securities [Member] | ||
Investment [Line Items] | ||
Held-to-maturity, Amortized Cost | 46,662 | |
Held-to-maturity, Fair Value | 48,529 | |
Asset-Backed Securities [Member] | ||
Investment [Line Items] | ||
Held-to-maturity, Amortized Cost | 2,797 | |
Held-to-maturity, Fair Value | $2,979 |
Investments_Summary_of_Amortiz1
Investments - Summary of Amortized Cost and Fair Value of Investments in Fixed Maturity Securities, Classified as Available-for-Sale (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Investment [Line Items] | ||
Due in 2015, Amortized Cost | $51,403 | |
In 2016 through 2019, Amortized Cost | 127,842 | |
In 2020 through 2024, Amortized Cost | 10,056 | |
After 2024, Amortized Cost | 127,855 | |
Total , Amortized Cost | 327,004 | 244,409 |
Due in 2015, Fair Value | 51,448 | |
In 2016 through 2019, Fair Value | 128,060 | |
In 2020 through 2024, Fair Value | 10,275 | |
After 2024, Fair Value | 132,961 | |
Total, Fair Value | 331,242 | 237,877 |
U.S. Agency-Based Mortgage-Backed Securities [Member] | ||
Investment [Line Items] | ||
Available-for-sale securities, Amortized Cost | 9,848 | |
Available-for-sale securities, Fair value | $8,498 |
Investments_A_Summary_of_the_C
Investments - A Summary of the Company's Realized Gains and Losses on Sales, Calls or Redemptions of Investments (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Investment [Line Items] | |||||||||||
Proceeds from sales | $10,548 | $10,990 | $33,140 | ||||||||
Gross realized investment gains | 750 | 1,354 | 2,741 | ||||||||
Gross realized investment (losses) | -451 | -471 | |||||||||
Net realized investment gains (losses) | 299 | 883 | 2,741 | ||||||||
Impairments | -222 | ||||||||||
Impairments | -2,229 | ||||||||||
Other, including gains on calls and redemptions | 620 | 135 | 238 | ||||||||
Net realized investment gains (losses) | 516 | -152 | 232 | 101 | 710 | -654 | -1,291 | 24 | 697 | -1,211 | 2,979 |
Fixed Maturity Securities Available for Sale [Member] | |||||||||||
Investment [Line Items] | |||||||||||
Proceeds from sales | 768 | 2,090 | 22,363 | ||||||||
Gross realized investment gains | 1 | 90 | 1,555 | ||||||||
Net realized investment gains (losses) | 1 | 90 | 1,555 | ||||||||
Impairments | -222 | ||||||||||
Other, including gains on calls and redemptions | 244 | 38 | 15 | ||||||||
Net realized investment gains (losses) | 23 | 128 | 1,570 | ||||||||
Equity Securities [Member] | |||||||||||
Investment [Line Items] | |||||||||||
Proceeds from sales | 9,780 | 8,900 | 10,777 | ||||||||
Gross realized investment gains | 749 | 1,264 | 1,186 | ||||||||
Gross realized investment (losses) | -451 | -471 | |||||||||
Net realized investment gains (losses) | 298 | 793 | 1,186 | ||||||||
Impairments | -2,229 | ||||||||||
Net realized investment gains (losses) | 298 | -1,436 | 1,186 | ||||||||
Other [Member] | |||||||||||
Investment [Line Items] | |||||||||||
Other, including gains on calls and redemptions | 376 | 97 | 223 | ||||||||
Net realized investment gains (losses) | $376 | $97 | $223 |
Investment_Major_Categories_of
Investment - Major Categories of the Company's Net Investment Income (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Investment [Line Items] | |||||||||||
Total gross investment income | $28,891 | $28,402 | $28,102 | ||||||||
Investment expenses | -1,677 | -1,373 | -1,084 | ||||||||
Net investment income | 7,166 | 6,495 | 6,845 | 6,708 | 6,763 | 6,947 | 6,649 | 6,670 | 27,214 | 27,029 | 27,018 |
Fixed Maturity Securities Available for Sale [Member] | |||||||||||
Investment [Line Items] | |||||||||||
Total gross investment income | 26,622 | 26,422 | 27,167 | ||||||||
Short-term Investments [Member] | |||||||||||
Investment [Line Items] | |||||||||||
Total gross investment income | 426 | 634 | 489 | ||||||||
Equity Securities [Member] | |||||||||||
Investment [Line Items] | |||||||||||
Total gross investment income | 232 | 543 | 446 | ||||||||
Other Investments [Member] | |||||||||||
Investment [Line Items] | |||||||||||
Total gross investment income | $1,611 | $803 |
Investments_Investment_Securit
Investments - Investment Securities Continuous Unrealized Loss Position (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Investment [Line Items] | ||
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | $150,147 | $68,985 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less Than Twelve Months, Accumulated Loss | 582 | 1,188 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 1,662 | 2,227 |
Held-to-maturity Securities, Continuous Unrealized Loss Position Twelve Months Or Longer, Accumulated Loss | 82 | 150 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Fair Value | 151,809 | 71,212 |
Held-to-maturity Securities, Gross Unrealized Losses | 664 | 1,338 |
Available-for Sale, Fair value of Investments with Unrealized Losses, Less Than 12 Months | 110,622 | 138,107 |
Available-for Sale, Gross Unrealized Losses, Less Than 12 Months | 487 | 6,191 |
Available-for Sale Fair, Value of Investments with Unrealized Losses, 12 Months or Greater | 18,104 | 7,525 |
Available-for Sale, Gross Unrealized Losses, 12 Months or Greater | 3,007 | 2,844 |
Available-for Sale, Fair Value of Investments with Unrealized Losses, Total | 128,726 | 145,632 |
Available-for Sale, Gross Unrealized Losses, Total | 3,494 | 9,035 |
Fair Value of Investments with Unrealized Losses, Less Than 12 months | 260,769 | 207,092 |
Gross Unrealized Loss, Less Than 12 Months | 1,069 | 7,379 |
Fair Value of Investments with Unrealized Losses, 12 Months or Greater | 19,766 | 9,752 |
Gross Unrealized Losses, 12 Months or Greater | 3,089 | 2,994 |
Fair Value of Investments with Unrealized Losses, Total | 280,535 | 216,844 |
Gross Unrealized Losses, Total | 4,158 | 10,373 |
U.S. Treasury Securities and Obligations of U.S. Government Agencies [Member] | ||
Investment [Line Items] | ||
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 3,385 | |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less Than Twelve Months, Accumulated Loss | 2 | |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Fair Value | 3,385 | |
Held-to-maturity Securities, Gross Unrealized Losses | 2 | |
Corporate Bonds [Member] | ||
Investment [Line Items] | ||
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 129,788 | 14,090 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less Than Twelve Months, Accumulated Loss | 520 | 41 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Fair Value | 129,788 | 14,090 |
Held-to-maturity Securities, Gross Unrealized Losses | 520 | 41 |
Available-for Sale, Fair value of Investments with Unrealized Losses, Less Than 12 Months | 106,185 | 29,691 |
Available-for Sale, Gross Unrealized Losses, Less Than 12 Months | 470 | 361 |
Available-for Sale, Fair Value of Investments with Unrealized Losses, Total | 106,185 | 29,691 |
Available-for Sale, Gross Unrealized Losses, Total | 470 | 361 |
States and Political Subdivisions [Member] | ||
Investment [Line Items] | ||
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 16,896 | 54,895 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less Than Twelve Months, Accumulated Loss | 58 | 1,147 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 311 | |
Held-to-maturity Securities, Continuous Unrealized Loss Position Twelve Months Or Longer, Accumulated Loss | 6 | |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Fair Value | 16,896 | 55,206 |
Held-to-maturity Securities, Gross Unrealized Losses | 58 | 1,153 |
Available-for Sale, Fair value of Investments with Unrealized Losses, Less Than 12 Months | 3,810 | 101,908 |
Available-for Sale, Gross Unrealized Losses, Less Than 12 Months | 6 | 4,798 |
Available-for Sale Fair, Value of Investments with Unrealized Losses, 12 Months or Greater | 10,347 | 1,753 |
Available-for Sale, Gross Unrealized Losses, 12 Months or Greater | 1,666 | 342 |
Available-for Sale, Fair Value of Investments with Unrealized Losses, Total | 14,157 | 103,661 |
Available-for Sale, Gross Unrealized Losses, Total | 1,672 | 5,140 |
U.S. Agency-Based Mortgage-Backed Securities [Member] | ||
Investment [Line Items] | ||
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 78 | |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less Than Twelve Months, Accumulated Loss | 2 | |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Fair Value | 78 | |
Held-to-maturity Securities, Gross Unrealized Losses | 2 | |
Available-for Sale, Fair value of Investments with Unrealized Losses, Less Than 12 Months | 627 | 1,303 |
Available-for Sale, Gross Unrealized Losses, Less Than 12 Months | 11 | 465 |
Available-for Sale Fair, Value of Investments with Unrealized Losses, 12 Months or Greater | 7,757 | 5,772 |
Available-for Sale, Gross Unrealized Losses, 12 Months or Greater | 1,341 | 2,502 |
Available-for Sale, Fair Value of Investments with Unrealized Losses, Total | 8,384 | 7,075 |
Available-for Sale, Gross Unrealized Losses, Total | 1,352 | 2,967 |
Equity Securities [Member] | ||
Investment [Line Items] | ||
Available-for Sale, Fair value of Investments with Unrealized Losses, Less Than 12 Months | 5,205 | |
Available-for Sale, Gross Unrealized Losses, Less Than 12 Months | 567 | |
Available-for Sale, Fair Value of Investments with Unrealized Losses, Total | 5,205 | |
Available-for Sale, Gross Unrealized Losses, Total | 567 | |
Asset-Backed Securities [Member] | ||
Investment [Line Items] | ||
Held-to-maturity Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 1,662 | 1,916 |
Held-to-maturity Securities, Continuous Unrealized Loss Position Twelve Months Or Longer, Accumulated Loss | 82 | 144 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Fair Value | 1,662 | 1,916 |
Held-to-maturity Securities, Gross Unrealized Losses | $82 | $144 |
Premiums_Receivable_Components
Premiums Receivable - Components of Premiums Receivable (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
Premiums Receivable, Net [Abstract] | ||||
Premiums receivable | $184,128 | $177,037 | ||
Allowance for doubtful accounts | -5,211 | -5,458 | -6,424 | -5,573 |
Premiums receivable, net | $178,917 | $171,579 |
Premiums_Receivable_Summarizes
Premiums Receivable - Summarizes the Activity in the Allowance for Doubtful Accounts (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Premiums Receivable, Allowance for Doubtful Accounts [Roll Forward] | |||
Balance, beginning of year | $5,458 | $6,424 | $5,573 |
Provision for bad debts | 673 | 52 | 2,230 |
Write-offs | -920 | -1,018 | -1,379 |
Balance, end of year | $5,211 | $5,458 | $6,424 |
Premiums_Receivable_Summarizes1
Premiums Receivable - Summarizes the Activity in the Allowance for Doubtful Accounts (Parenthetical) (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Receivables [Line Items] | |||
Provision for bad debts | $673 | $52 | $2,230 |
One-Time Adjustment [Member] | |||
Receivables [Line Items] | |||
Provision for bad debts | $1,700 |
Premiums_Receivable_Additional
Premiums Receivable - Additional Information (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | |||
Premiums Receivable, Net [Abstract] | |||
Earned but Unbilled | $5.20 | $4.30 | $3 |
Deferred_Policy_Acquisition_Co2
Deferred Policy Acquisition Costs - Schedule of Major Categories of the Deferred Policy Acquisition Costs (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
Deferred Charges, Insurers [Abstract] | ||||
Agents' commissions | $15,351 | $15,511 | ||
Premium taxes | 3,100 | 2,526 | ||
Deferred underwriting expenses | 1,198 | 1,134 | ||
Total deferred policy acquisition costs | $19,649 | $19,171 | $18,419 | $16,578 |
Recovered_Sheet1
Deferred Policy Acquisition costs - Schedule of the Activity in the Deferred Policy Acquisition Costs (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | |||
Balance, beginning of year | $19,171 | $18,419 | $16,578 |
Policy acquisition costs deferred | 44,295 | 41,278 | 40,961 |
Amortization expense during the year | -43,817 | -40,526 | -39,120 |
Balance, end of year | $19,649 | $19,171 | $18,419 |
Property_and_Equipment_Schedul
Property and Equipment - Schedule of Property and Equipment (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Gross | $24,299 | $24,098 |
Accumulated depreciation | -17,059 | -16,549 |
Property and equipment, net | 7,240 | 7,549 |
Land and Office Building [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Gross | 7,758 | 7,749 |
Furniture and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Gross | 6,593 | 6,653 |
Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Gross | 9,875 | 9,615 |
Automobiles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Gross | $73 | $81 |
Property_and_Equipment_Additio
Property and Equipment - Additional Information (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Property, Plant and Equipment [Abstract] | ||
Property and equipment held under capital lease | $100,000 | |
Accumulated depreciation | 49,000 | |
Capital lease obligations | $0 |
Property_and_Equipment_Schedul1
Property and Equipment - Schedule of Future Minimum Lease Payments for Capital Lease Obligations (Detail) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Property, Plant and Equipment [Abstract] | |
2015 | $38 |
2016 | 39 |
2017 | 29 |
Present value of net minimum lease payments | $106 |
Reinsurance_Schedule_of_the_Ef
Reinsurance - Schedule of the Effect of Reinsurance on Premiums Written and Earned (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Premiums Written and Earned [Abstract] | |||
Gross Written | $393,819 | $372,177 | $328,823 |
Ceded Written | -13,793 | -18,425 | -16,305 |
Net premiums Written | 380,026 | 353,752 | 312,518 |
Gross Earned | 389,540 | 348,408 | 306,994 |
Ceded Earned | -13,793 | -18,425 | -16,305 |
Net premiums Earned | $375,747 | $329,983 | $290,689 |
Reinsurance_Schedule_of_the_Am
Reinsurance - Schedule of the Amounts Recoverable from Reinsurers (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Unpaid losses recoverable: | ||
Case basis | $34,196 | $31,850 |
Incurred but not reported | 25,138 | 16,849 |
Paid losses recoverable | 424 | 497 |
Experience-rated commissions recoverable | 26,130 | 26,130 |
Total reinsurance recoverables | $85,888 | $75,326 |
Reinsurance_Additional_Informa
Reinsurance - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Insurance [Abstract] | |||
Paid losses recoverable outstanding due date | 90 days | ||
Paid losses recoverable past due | $0 | ||
Return of previous recoveries | 2,300,000 | ||
Received reinsurance recoveries | $1,500,000 | $2,100,000 | $5,300,000 |
Unsecured reinsurance recoverable by reinsurer reporting threshold | 1.50% |
Reinsurance_Schedule_of_Unsecu
Reinsurance - Schedule of Unsecured Reinsurance Recoverables from Reinsurers (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Ceded Credit Risk [Line Items] | ||
Total reinsurance recoverables | $85,888 | $75,326 |
Letters of credit and funds held | -47,833 | |
Total unsecured reinsurance recoverables | 38,055 | |
Ceded Credit Risk, Concentrated Credit Risk [Member] | Hannover Reinsurance (Ireland) Limited (A+) [Member] | ||
Ceded Credit Risk [Line Items] | ||
Total reinsurance recoverables | 27,387 | |
Ceded Credit Risk, Concentrated Credit Risk [Member] | Odyssey America Reinsurance Corporation (A) [Member] | ||
Ceded Credit Risk [Line Items] | ||
Total reinsurance recoverables | 13,523 | |
Ceded Credit Risk, Concentrated Credit Risk [Member] | Minnesota Workers' Compensation Reinsurance Association (NR) [Member] | ||
Ceded Credit Risk [Line Items] | ||
Total reinsurance recoverables | 8,518 | |
Ceded Credit Risk, Concentrated Credit Risk [Member] | Tokio Millenium Reinsurance Limited (A++) [Member] | ||
Ceded Credit Risk [Line Items] | ||
Total reinsurance recoverables | 6,410 | |
Ceded Credit Risk, Concentrated Credit Risk [Member] | Clearwater Insurance Company (bbb) [Member] | ||
Ceded Credit Risk [Line Items] | ||
Total reinsurance recoverables | 6,229 | |
Ceded Credit Risk, Concentrated Credit Risk [Member] | Other Reinsurers [Member] | ||
Ceded Credit Risk [Line Items] | ||
Total reinsurance recoverables | $23,821 |
Income_Taxes_Schedule_of_Compa
Income Taxes - Schedule of Company's Deferred Income Tax Assets and Liabilities (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Deferred income tax assets: | ||
Discounting of net unpaid loss and loss adjustment expenses | $17,952 | $17,493 |
Unearned premiums | 14,788 | 14,008 |
Accrued expenses and other | 4,306 | 4,336 |
State income tax | 591 | |
Accrued policyholder dividends | 438 | 684 |
Impaired securities | 80 | 874 |
Accrued insurance-related assessments | 4,804 | 3,989 |
Total deferred tax assets | 42,959 | 41,384 |
Deferred income tax liabilities: | ||
Deferred policy acquisition costs | -8,815 | -7,937 |
Unrealized gain (loss) on securities available-for-sale | -1,513 | 2,313 |
Property and equipment and other | -331 | -266 |
Salvage and subrogation | -289 | -288 |
Guaranty fund related items | -780 | -1,561 |
Total deferred income tax liabilities | -11,728 | -7,739 |
Net deferred income taxes | $31,231 | $33,645 |
Income_Taxes_Components_of_Con
Income Taxes - Components of Consolidated Income Tax Expense (Benefit) (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Current: | |||
Federal | $20,811 | $15,270 | $7,373 |
State | 684 | 504 | 302 |
Total Current | 21,495 | 15,774 | 7,675 |
Deferred: | |||
Federal | -821 | -207 | 115 |
State | -591 | ||
Total Deferred | -1,412 | -207 | 115 |
Income tax expense, Total | $20,083 | $15,567 | $7,790 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Income Tax Disclosure [Abstract] | |||
Change in deferred tax valuation allowance | $0 | $0 | $0 |
Valuation allowance | 0 | ||
U.S. federal income tax statutory rate | 35.00% | ||
Company recognized uncertain tax positions | $0 | $0 | $0 |
Income_Taxes_Income_Tax_Expens
Income Taxes - Income Tax Expense from Operations from the Amount Computed by Applying the U.S. Federal Income Tax Statutory Rate of 35% to Income Before Income Taxes (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||
Income tax computed at federal statutory tax rate | $25,812 | $20,721 | $13,000 |
Tax-exempt interest, net | -5,620 | -5,458 | -5,333 |
State income tax | -146 | 504 | 302 |
Dividends received deduction | -60 | -113 | -79 |
Other | 97 | -87 | -100 |
Income tax expense, Total | $20,083 | $15,567 | $7,790 |
Line_of_Credit_Additional_Info
Line of Credit - Additional Information (Detail) (USD $) | 1 Months Ended | 12 Months Ended | ||
Oct. 31, 2007 | Dec. 31, 2013 | Dec. 31, 2010 | Dec. 31, 2014 | |
Line of Credit Facility [Line Items] | ||||
Maximum amount of line of credit | $20,000,000 | |||
Line of credit facility renewal period | 3 years | 3 years | 3 years | |
Outstanding borrowings or letters of credit | 0 | |||
Line of Credit Facility Expired December 2016 [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Payment on unused portion of the loan | 0.25% | |||
Total fee | $50,000 |
Loss_and_Loss_Adjustment_Expen2
Loss and Loss Adjustment Expenses - Reconciliation of Beginning and Ending Reserve Balances, Net of Related Amounts Recoverable from Reinsurers (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Liability for Unpaid Claims and Claims Adjustment Expense, Activity in Liability [Abstract] | |||
Balance, beginning of period | $614,557 | $570,450 | $538,214 |
Less amounts recoverable from reinsurers on unpaid loss and loss adjustment expenses | 48,699 | 55,190 | 60,937 |
Net balance, beginning of period | 565,858 | 515,260 | 477,277 |
Add incurred related to: | |||
Current accident year | 268,633 | 241,584 | 222,393 |
Prior accident years | -23,717 | -12,611 | -2,490 |
Total incurred | 244,916 | 228,973 | 219,903 |
Less paid related to: | |||
Current accident year | 52,848 | 51,169 | 50,423 |
Prior accident years | 129,658 | 127,206 | 131,497 |
Total paid | 182,506 | 178,375 | 181,920 |
Net balance, end of period | 628,268 | 565,858 | 515,260 |
Add amounts recoverable from reinsurers on unpaid loss and loss adjustment expenses | 59,334 | 48,699 | 55,190 |
Balance, end of period | $687,602 | $614,557 | $570,450 |
Loss_and_Loss_Adjustment_Expen3
Loss and Loss Adjustment Expenses - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Unpaid Losses And Loss Expenses [Line Items] | |||
Loss and LAE Related to Prior Periods | ($23,717) | ($12,611) | ($2,490) |
Accident Year 2012 [Member] | |||
Unpaid Losses And Loss Expenses [Line Items] | |||
Loss and LAE Related to Prior Periods | -9,300 | ||
Accident Year 2010 [Member] | |||
Unpaid Losses And Loss Expenses [Line Items] | |||
Loss and LAE Related to Prior Periods | -6,900 | ||
Accident Year 2009 [Member] | |||
Unpaid Losses And Loss Expenses [Line Items] | |||
Loss and LAE Related to Prior Periods | ($1,700) |
Loss_and_Loss_Adjustment_Expen4
Loss and Loss Adjustment Expenses - Summary Exposures to Various Asbestos Related Claims (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Asbestos Claims [Line Items] | |||
Balance, beginning of period | $614,557 | $570,450 | $538,214 |
Incurred losses and LAE during the current year | 244,916 | 228,973 | 219,903 |
Loss and LAE payments | -52,848 | -51,169 | -50,423 |
Balance, end of period | 687,602 | 614,557 | 570,450 |
Asbestos Issue [Member] | |||
Asbestos Claims [Line Items] | |||
Balance, beginning of period | 219 | 167 | |
Incurred losses and LAE during the current year | 882 | 53 | 168 |
Loss and LAE payments | -282 | -1 | -1 |
Balance, end of period | $819 | $219 | $167 |
Statutory_Accounting_and_Regul2
Statutory Accounting and Regulatory Requirements - Insurance Subsidiaries (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Insurance [Abstract] | |||
Capital and surplus | $377,742 | $354,293 | $323,932 |
Net income | 50,205 | 44,751 | 31,059 |
Realized investment gains (losses) | $693 | ($1,214) | $2,958 |
Statutory_Accounting_and_Regul3
Statutory Accounting and Regulatory Requirements - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Insurance [Abstract] | |||
Dividends to the Company | 10.00% | ||
Dividends paid | $25 | $15 | $21 |
Dividends permissable to pay without seeking regulatory approval | $37.80 |
Capital_Stock_Additional_Infor
Capital Stock - Additional Information (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Equity [Abstract] | ||
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 20,155,936 | 19,855,430 |
Common stock, shares outstanding | 18,897,686 | 18,597,180 |
Preferred stock, shares authorized | 10,000,000 | |
Preferred stock, par value | $0.01 | |
Preferred stock, shares outstanding | 0 |
Stock_Options_and_Restricted_S2
Stock Options and Restricted Stock - Additional Information (Detail) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total tax expense | $2,841,000 | $2,024,000 | $421,000 | |
2005 Incentive Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock options exercise price | 100.00% | |||
Company's voting stock | 10.00% | |||
Stock options exercise price | 110.00% | |||
Duration for Stock option grants exercisable | 10 years | |||
Stock options exercise period | 5 years | |||
Expiration of stock option | 90 days | |||
Unexercised portion of stock option remains exercisable | 1 year | |||
Number of companies used for the estimation of expected volatility | 6 | |||
Dividend yield assumed | 0.00% | |||
Cash dividends paid | 0 | |||
Compensation expense | 300,000 | 300,000 | 200,000 | |
Total tax expense | 38,000 | 4,000 | ||
Restricted stock outstanding | 2,400 | 6,400 | 8,000 | |
Restricted stock granted | 8,000 | |||
2010 Restricted Stock Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation expense | 200,000 | 200,000 | 200,000 | |
Total tax expense | 7,000 | 18,000 | 16,000 | |
Shares authorized under incentive plan | 100,000 | |||
Common stock available for future awards | 33,186 | |||
Restricted stock award for a number of shares | 30,000 | |||
Restricted stock outstanding | 5,229 | 5,376 | 7,833 | 9,513 |
Restricted stock granted | 5,229 | 5,376 | 7,833 | |
2012 Equity and Incentive Compensation Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares authorized under incentive plan | 500,000 | |||
Common stock available for future awards | 413,079 | |||
Restricted stock granted | 4,312 | |||
2012 Equity and Incentive Compensation Plan [Member] | Share Based Grants [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation expense | 600,000 | 300,000 | 12,000 | |
2012 Equity and Incentive Compensation Plan [Member] | Long-Term Incentive Awards [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation expense | $400,000 | $600,000 | $200,000 | |
2012 Equity and Incentive Compensation Plan [Member] | Restricted Stock Units (RSUs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted stock granted | 80,278 |
Stock_Options_and_Restricted_S3
Stock Options and Restricted Stock - Stock Options Outstanding (Detail) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||
Shares outstanding, Beginning balance | 576,248 | 832,548 | 919,348 | |
Shares, Granted | 0 | 0 | 0 | |
Shares, Exercised | -294,165 | -256,300 | -86,800 | |
Shares Canceled, forfeited, or expired | 0 | 0 | 0 | |
Shares outstanding, Ending balance | 282,083 | 576,248 | 832,548 | 919,348 |
Shares exercisable, Ending balance | 282,083 | 557,448 | 779,948 | |
Weighted- Average Exercise Price, Beginning balance | $11.12 | $10.51 | $10.37 | |
Weighted- Average Exercise Price, Granted | $0 | $0 | $0 | |
Weighted- Average Exercise Price, Exercised | $9.09 | $9 | $9 | |
Weighted- Average Exercise Price, Canceled, forfeited, or expired | $0 | $0 | $0 | |
Weighted- Average Exercise Price, Ending balance | $11.30 | $11.12 | $10.51 | $10.37 |
Weighted- Average Exercise Price, Exercisable Ending balance | $11.30 | $10.91 | $10.08 | |
Weighted- Average Remaining Contractual Life (in years) | 3 years 7 months 6 days | 3 years 9 months 18 days | 4 years 7 months 6 days | 5 years 6 months 5 days |
Weighted- Average Remaining Contractual Life (in years), Exercisable | 3 years 7 months 6 days | 3 years 8 months 12 days | 4 years 4 months 24 days | |
Weighted- Average Remaining Contractual Life (in years) | 3 years 7 months 6 days | 3 years 9 months 18 days | 4 years 7 months 6 days | 5 years 6 months 5 days |
Stock_Options_and_Restricted_S4
Stock Options and Restricted Stock - Weighted Average Grant Date Fair Values of Options Granted (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Cash received from option exercises | $2,674 | $2,344 | $781 |
Total tax benefits realized for tax deductions from options exercised | 2,797 | 2,002 | 405 |
Total intrinsic value of options exercised | 9,145 | 6,654 | 1,468 |
Grant date fair value of options vested | 144 | 226 | 310 |
Aggregate intrinsic value of vested options outstanding | $8,763 | $17,467 | $13,393 |
Stock_Options_and_Restricted_S5
Stock Options and Restricted Stock - Restricted Stock Outstanding (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
2005 Incentive Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares, Nonvested outstanding, Beginning balance | 6,400 | 8,000 | |
Shares, Granted | 8,000 | ||
Shares, Vested | -800 | -1,600 | |
Shares, Forfeited | -3,200 | ||
Shares, Nonvested outstanding, Ending balance | 2,400 | 6,400 | 8,000 |
Weighted-Average Grant-Date Fair Value per Share, Beginning balance | $27.47 | $27.47 | |
Weighted-Average Grant-Date Fair Value per Share, Granted | $27.47 | ||
Weighted-Average Grant-Date Fair Value per Share, Vested | $27.35 | $27.47 | |
Weighted-Average Grant-Date Fair Value per Share, Forfeited | $27.59 | ||
Weighted-Average Grant-Date Fair Value per Share, Ending balance | $27.35 | $27.47 | $27.47 |
2010 Restricted Stock Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares, Nonvested outstanding, Beginning balance | 5,376 | 7,833 | 9,513 |
Shares, Granted | 5,229 | 5,376 | 7,833 |
Shares, Vested | -5,376 | -7,833 | -9,513 |
Shares, Nonvested outstanding, Ending balance | 5,229 | 5,376 | 7,833 |
Weighted-Average Grant-Date Fair Value per Share, Beginning balance | $33.47 | $26.79 | $22.06 |
Weighted-Average Grant-Date Fair Value per Share, Granted | $37.27 | $33.47 | $26.79 |
Weighted-Average Grant-Date Fair Value per Share, Vested | $33.47 | $26.79 | $22.06 |
Weighted-Average Grant-Date Fair Value per Share, Ending balance | $37.27 | $33.47 | $26.79 |
2012 Incentive Plan [Member] | Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares, Nonvested outstanding, Beginning balance | 82,609 | 2,331 | |
Shares, Granted | 4,312 | 80,278 | 2,331 |
Shares, Vested | -14,000 | ||
Shares, Nonvested outstanding, Ending balance | 72,921 | 82,609 | 2,331 |
Weighted-Average Grant-Date Fair Value per Share, Beginning balance | $33.93 | $26.79 | |
Weighted-Average Grant-Date Fair Value per Share, Granted | $43.83 | $34.14 | $26.79 |
Weighted-Average Grant-Date Fair Value per Share, Vested | $33.58 | ||
Weighted-Average Grant-Date Fair Value per Share, Ending balance | $34.59 | $33.93 | $26.79 |
Earnings_Per_Share_Calculation
Earnings Per Share - Calculation of Basic and Diluted Earnings Per Share (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Earnings Per Share, Basic [Abstract] | |||||||||||
Net income | $16,865 | $13,479 | $12,773 | $10,549 | $17,443 | $9,699 | $7,644 | $8,851 | $53,666 | $43,637 | $29,353 |
Less allocated income to participating securities | 142 | 22 | |||||||||
Net income available to common shareholders - basic | 53,666 | 43,495 | 29,331 | ||||||||
Basic weighted-average common shares | 18,646,128 | 18,373,033 | 18,166,261 | ||||||||
Basic earnings per share | $0.90 | $0.72 | $0.69 | $0.57 | $0.94 | $0.53 | $0.42 | $0.48 | $2.88 | $2.37 | $1.62 |
Net income available to common shareholders - diluted | $16,865 | $13,479 | $12,773 | $10,549 | $17,364 | $9,673 | $7,618 | $8,836 | $53,666 | $43,495 | $29,331 |
Weighted average common shares | 18,646,128 | 18,373,033 | 18,166,261 | ||||||||
Stock options and performance shares | 282,376 | 375,776 | 408,930 | ||||||||
Diluted weighted average common shares | 18,928,504 | 18,748,809 | 18,575,191 | ||||||||
Diluted earnings per common share | $0.89 | $0.71 | $0.68 | $0.56 | $0.92 | $0.52 | $0.41 | $0.47 | $2.84 | $2.32 | $1.58 |
Earnings_Per_Share_Calculation1
Earnings Per Share - Calculation of Percentage of Net Income Allocable to Common Shareholders (Detail) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Earnings Per Share [Abstract] | |||
Basic weighted average common shares | 18,646,128 | 18,373,033 | 18,166,261 |
Add: Other common shares eligible for common dividends: | |||
Weighted average restricted shares and stock options (including tax benefit component) | 282,376 | 375,776 | 408,930 |
Diluted weighted average common shares | 18,928,504 | 18,748,809 | 18,575,191 |
Comprehensive_Income_and_Accum2
Comprehensive Income and Accumulated Other Comprehensive Income (Loss) - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2014 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Comprehensive income tax rate | 35.00% |
Comprehensive_Income_and_Accum3
Comprehensive Income and Accumulated Other Comprehensive Income (Loss) - Schedule of Changes in Accumulated Other Comprehensive Income (AOCI) (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||
Beginning balance | ($4,295) | $2,979 | $2,215 |
Other comprehensive income (loss) before reclassification | 6,558 | -7,525 | 1,552 |
Amounts reclassified from accumulated other comprehensive income (loss) | 547 | 251 | -788 |
Net current period other comprehensive income (loss) | 7,105 | -7,274 | 764 |
Ending balance | $2,810 | ($4,295) | $2,979 |
Comprehensive_Income_and_Accum4
Comprehensive Income and Accumulated Other Comprehensive Income (Loss) - Reclassification Out of Accumulated Other Comprehensive Income (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Income before income taxes | $23,936 | $19,348 | $17,061 | $13,404 | $25,030 | $12,447 | $10,647 | $11,080 | $73,749 | $59,204 | $37,143 |
Income tax expense | -20,083 | -15,567 | -7,790 | ||||||||
Net income | 16,865 | 13,479 | 12,773 | 10,549 | 17,443 | 9,699 | 7,644 | 8,851 | 53,666 | 43,637 | 29,353 |
Changes in Net Unrealized Gains (Losses) on Investment Securities [Member] | Reclassification Out of Accumulated Other Comprehensive Income [Member] | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Unrealized gains (losses) on available-for-sale securities | -825 | 30 | 1,211 | ||||||||
Other-than-temporary impairment | -16 | -416 | |||||||||
Income before income taxes | -841 | -386 | 1,211 | ||||||||
Income tax expense | 294 | 135 | -423 | ||||||||
Net income | ($547) | ($251) | $788 |
Comprehensive_Income_and_Accum5
Comprehensive Income and Accumulated Other Comprehensive Income (Loss) - Other Comprehensive Income (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Equity [Abstract] | |||
Unrealized gain (loss) on available-for-sale securities, Pre-tax Amount | $10,133 | ($11,504) | $2,555 |
Change in unrealized losses on fixed maturity securities with OTTI, Pre-Tax Amount | 17 | 2 | 1 |
Change in unrealized losses on equity securities with OTTI, Pre-Tax Amount | 416 | ||
Less amortization of differences between fair value and amortized cost for fixed maturity security transfer, Pre-tax Amount | -44 | -75 | -101 |
Less reclassification adjustment for gains realized in net income, Pre-Tax Amount | 825 | -30 | -1,279 |
Net unrealized gain loss, Pre-Tax Amount | 10,931 | -11,191 | 1,176 |
Other comprehensive income, Pre-Tax Amount | 10,931 | -11,191 | 1,176 |
Unrealized gain loss on available-for-sale securities, Tax Expense | 3,546 | -4,027 | 894 |
Change in unrealized losses on fixed maturity securities with OTTI, Tax Expense | 6 | 1 | |
Change in unrealized losses on equity securities with OTTI, Tax Expense | 146 | ||
Less amortization of differences between fair value and amortized cost for fixed maturity security transfer, Tax Expense | -15 | -26 | -35 |
Less reclassification adjustment for gains realized in net income, Tax Expense | 289 | -11 | -447 |
Net unrealized gain loss, Tax Expense | 3,826 | -3,917 | 412 |
Other comprehensive income, Tax Expense | 3,826 | -3,917 | 412 |
Unrealized gain (loss) on available-for-sale securities, Net-of-Tax Amount | 6,587 | -7,477 | 1,661 |
Change in unrealized losses on fixed maturity securities with OTTI, Net-of-Tax Amount | 11 | 1 | 1 |
Change in unrealized losses on equity securities with OTTI, Net-of-Tax Amount | 270 | ||
Less amortization of differences between fair value and amortized cost for fixed maturity security transfer, Net-of-Tax Amount | -29 | -49 | -66 |
Reclassification adjustment for gains realized in net income, Net-of-Tax Amount | 536 | -19 | -832 |
Net unrealized gain loss, Net-of-Tax Amount | 7,105 | -7,274 | 764 |
Other comprehensive income, Net-of-Tax Amount | $7,105 | ($7,274) | $764 |
Employee_Benefit_Plan_Addition
Employee Benefit Plan - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Compensation and Retirement Disclosure [Abstract] | |||
Matches employee compensation for participating employees | 2.00% | ||
Fully vested in employer contributions | 5 years | ||
Defined contribution this plan | $0.40 | $0.30 | $0.30 |
Commitments_and_Contingencies_1
Commitments and Contingencies - Fair Value of Annuities (Detail) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Commitments And Contingencies [Line Items] | |
Statement value of annuities exceeding 1% of statutory surplus | $94,561 |
Metropolitan Life Insurance Company (A+) [Member] | |
Commitments And Contingencies [Line Items] | |
Statement value of annuities exceeding 1% of statutory surplus | 15,451 |
American General Life Insurance (A) [Member] | |
Commitments And Contingencies [Line Items] | |
Statement value of annuities exceeding 1% of statutory surplus | 15,432 |
Pacific Life and Annuity Company (A+) [Member] | |
Commitments And Contingencies [Line Items] | |
Statement value of annuities exceeding 1% of statutory surplus | 15,306 |
New York Life Insurance Company (A++) [Member] | |
Commitments And Contingencies [Line Items] | |
Statement value of annuities exceeding 1% of statutory surplus | 12,131 |
John Hancock Life Insurance Company USA (A+) [Member] | |
Commitments And Contingencies [Line Items] | |
Statement value of annuities exceeding 1% of statutory surplus | 7,854 |
Athene Annuity and Life Assurance Company (B++) [Member] | |
Commitments And Contingencies [Line Items] | |
Statement value of annuities exceeding 1% of statutory surplus | 6,543 |
Liberty Life Assurance Company of Boston (A) [Member] | |
Commitments And Contingencies [Line Items] | |
Statement value of annuities exceeding 1% of statutory surplus | 4,020 |
Other [Member] | |
Commitments And Contingencies [Line Items] | |
Statement value of annuities exceeding 1% of statutory surplus | $17,824 |
Commitments_and_Contingencies_2
Commitments and Contingencies - Future Minimum Lease Payments (Detail) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Operating Leases Future Minimum Payments Due [Abstract] | |
2015 | $140 |
2016 | 121 |
2017 | 98 |
2018 | 67 |
2019 | 6 |
Total future minimum lease payments | $432 |
Commitments_and_Contingencies_3
Commitments and Contingencies - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Commitments and Contingencies Disclosure [Abstract] | |||
Rent expense | $0.20 | $0.20 | $0.20 |
Concentration_of_Operations_Ne
Concentration of Operations - Net Premiums Earned for the Different Lines of Business (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Schedule Of Premiums Earned Net By Segment [Line Items] | |||||||||||
Premiums earned | $97,070 | $95,928 | $93,516 | $89,233 | $86,695 | $81,596 | $81,983 | $79,709 | $375,747 | $329,983 | $290,689 |
Premium earned percentage | 100.00% | 100.00% | 100.00% | ||||||||
Workers Compensation [Member] | |||||||||||
Schedule Of Premiums Earned Net By Segment [Line Items] | |||||||||||
Premiums earned | 375,746 | 329,986 | 290,538 | ||||||||
Premium earned percentage | 100.00% | 100.00% | 99.90% | ||||||||
General Liability [Member] | |||||||||||
Schedule Of Premiums Earned Net By Segment [Line Items] | |||||||||||
Premiums earned | $1 | ($3) | $151 | ||||||||
Premium earned percentage | 0.00% | 0.00% | 0.10% |
Concentration_of_Operations_Ne1
Concentration of Operations - Net Premiums Earned for the Top Ten States (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Schedule Of Premiums Earned Net By Segment [Line Items] | |||||||||||
Premiums earned | $97,070 | $95,928 | $93,516 | $89,233 | $86,695 | $81,596 | $81,983 | $79,709 | $375,747 | $329,983 | $290,689 |
Premium earned percentage | 100.00% | 100.00% | 100.00% | ||||||||
Louisiana [Member] | |||||||||||
Schedule Of Premiums Earned Net By Segment [Line Items] | |||||||||||
Premiums earned | 47,643 | 42,110 | 31,134 | ||||||||
Premium earned percentage | 12.70% | 12.80% | 10.70% | ||||||||
Georgia [Member] | |||||||||||
Schedule Of Premiums Earned Net By Segment [Line Items] | |||||||||||
Premiums earned | 36,761 | 30,096 | 25,033 | ||||||||
Premium earned percentage | 9.80% | 9.10% | 8.60% | ||||||||
Pennsylvania [Member] | |||||||||||
Schedule Of Premiums Earned Net By Segment [Line Items] | |||||||||||
Premiums earned | 35,488 | 28,880 | 24,480 | ||||||||
Premium earned percentage | 9.40% | 8.80% | 8.40% | ||||||||
North Carolina [Member] | |||||||||||
Schedule Of Premiums Earned Net By Segment [Line Items] | |||||||||||
Premiums earned | 20,872 | 21,019 | 20,036 | ||||||||
Premium earned percentage | 5.60% | 6.40% | 6.90% | ||||||||
Florida [Member] | |||||||||||
Schedule Of Premiums Earned Net By Segment [Line Items] | |||||||||||
Premiums earned | 20,691 | 12,950 | 9,180 | ||||||||
Premium earned percentage | 5.50% | 3.90% | 3.20% | ||||||||
Illinois [Member] | |||||||||||
Schedule Of Premiums Earned Net By Segment [Line Items] | |||||||||||
Premiums earned | 20,606 | 18,445 | 18,119 | ||||||||
Premium earned percentage | 5.50% | 5.60% | 6.20% | ||||||||
Virginia [Member] | |||||||||||
Schedule Of Premiums Earned Net By Segment [Line Items] | |||||||||||
Premiums earned | 16,764 | 15,751 | 16,144 | ||||||||
Premium earned percentage | 4.50% | 4.80% | 5.60% | ||||||||
Oklahoma [Member] | |||||||||||
Schedule Of Premiums Earned Net By Segment [Line Items] | |||||||||||
Premiums earned | 16,599 | 17,473 | 16,157 | ||||||||
Premium earned percentage | 4.40% | 5.30% | 5.60% | ||||||||
Texas [Member] | |||||||||||
Schedule Of Premiums Earned Net By Segment [Line Items] | |||||||||||
Premiums earned | 14,846 | 14,949 | 11,687 | ||||||||
Premium earned percentage | 4.00% | 4.50% | 4.00% | ||||||||
Minnesota [Member] | |||||||||||
Schedule Of Premiums Earned Net By Segment [Line Items] | |||||||||||
Premiums earned | 13,159 | 10,470 | 10,094 | ||||||||
Premium earned percentage | 3.50% | 3.20% | 3.50% | ||||||||
All Others [Member] | |||||||||||
Schedule Of Premiums Earned Net By Segment [Line Items] | |||||||||||
Premiums earned | $132,318 | $117,840 | $108,625 | ||||||||
Premium earned percentage | 35.10% | 35.60% | 37.30% |
Fair_Value_Measurements_Summar
Fair Value Measurements - Summary of Carrying Values and Corresponding Fair Values for Financial Instruments (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fixed maturity securities-held to maturity | $664,371 | $561,179 |
Fixed maturity securities-held-to-maturity | 639,631 | 536,583 |
Fixed maturity securities-available for sale | 331,242 | 237,877 |
Equity securities | 28 | 9,302 |
Short-term investments | 33,684 | 84,422 |
Carrying Amount [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fixed maturity securities-held-to-maturity | 639,631 | 536,583 |
Fixed maturity securities-available for sale | 331,242 | 237,877 |
Equity securities | 28 | 9,302 |
Cash and cash equivalents | 90,956 | 123,077 |
Short-term investments | 33,684 | 84,422 |
Other investments | 11,748 | 10,591 |
Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fixed maturity securities-held to maturity | 664,371 | 561,179 |
Fixed maturity securities-available for sale | 331,242 | 237,877 |
Equity securities | 28 | 9,302 |
Cash and cash equivalents | 90,956 | 123,077 |
Short-term investments | 33,684 | 84,422 |
Other investments | $11,748 | $10,591 |
Fair_Value_Measurements_Schedu
Fair Value Measurements - Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value Measurements Disclosure [Line Items] | ||
Securities available for sale/Available-for-sale, Fair value | $343,018 | $257,770 |
Equity Securities [Member] | ||
Fair Value Measurements Disclosure [Line Items] | ||
Securities available for sale/Available-for-sale, Fair value | 28 | 9,302 |
Other Investments [Member] | ||
Fair Value Measurements Disclosure [Line Items] | ||
Securities available for sale/Available-for-sale, Fair value | 11,748 | 10,591 |
Fair Value, Measurements, Recurring [Member] | ||
Fair Value Measurements Disclosure [Line Items] | ||
Securities available for sale/Available-for-sale, Fair value | 343,018 | 257,770 |
Fair Value, Measurements, Recurring [Member] | Debt Securities [Member] | ||
Fair Value Measurements Disclosure [Line Items] | ||
Securities available for sale/Available-for-sale, Fair value | 331,242 | 237,877 |
Fair Value, Measurements, Recurring [Member] | Other Investments [Member] | ||
Fair Value Measurements Disclosure [Line Items] | ||
Securities available for sale/Available-for-sale, Fair value | 11,748 | 10,591 |
Fair Value, Measurements, Recurring [Member] | Common Stock [Member] | Equity Securities [Member] | ||
Fair Value Measurements Disclosure [Line Items] | ||
Securities available for sale/Available-for-sale, Fair value | 28 | 9,302 |
Fair Value, Measurements, Recurring [Member] | States and Political Subdivisions [Member] | Debt Securities [Member] | ||
Fair Value Measurements Disclosure [Line Items] | ||
Securities available for sale/Available-for-sale, Fair value | 157,374 | 150,375 |
Fair Value, Measurements, Recurring [Member] | U.S. Agency-Based Mortgage-Backed Securities [Member] | Debt Securities [Member] | ||
Fair Value Measurements Disclosure [Line Items] | ||
Securities available for sale/Available-for-sale, Fair value | 8,498 | 7,074 |
Fair Value, Measurements, Recurring [Member] | Corporate Bonds [Member] | Debt Securities [Member] | ||
Fair Value Measurements Disclosure [Line Items] | ||
Securities available for sale/Available-for-sale, Fair value | 165,370 | 80,428 |
Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value Measurements Disclosure [Line Items] | ||
Securities available for sale/Available-for-sale, Fair value | 28 | 9,302 |
Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Common Stock [Member] | Equity Securities [Member] | ||
Fair Value Measurements Disclosure [Line Items] | ||
Securities available for sale/Available-for-sale, Fair value | 28 | 9,302 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value Measurements Disclosure [Line Items] | ||
Securities available for sale/Available-for-sale, Fair value | 331,242 | 237,877 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Debt Securities [Member] | ||
Fair Value Measurements Disclosure [Line Items] | ||
Securities available for sale/Available-for-sale, Fair value | 331,242 | 237,877 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | States and Political Subdivisions [Member] | Debt Securities [Member] | ||
Fair Value Measurements Disclosure [Line Items] | ||
Securities available for sale/Available-for-sale, Fair value | 157,374 | 150,375 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | U.S. Agency-Based Mortgage-Backed Securities [Member] | Debt Securities [Member] | ||
Fair Value Measurements Disclosure [Line Items] | ||
Securities available for sale/Available-for-sale, Fair value | 8,498 | 7,074 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Corporate Bonds [Member] | Debt Securities [Member] | ||
Fair Value Measurements Disclosure [Line Items] | ||
Securities available for sale/Available-for-sale, Fair value | 165,370 | 80,428 |
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value Measurements Disclosure [Line Items] | ||
Securities available for sale/Available-for-sale, Fair value | 11,748 | 10,591 |
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | Other Investments [Member] | ||
Fair Value Measurements Disclosure [Line Items] | ||
Securities available for sale/Available-for-sale, Fair value | $11,748 | $10,591 |
Fair_Value_Measurements_Schedu1
Fair Value Measurements - Schedule of Assets and Liabilities Measured at Amortized Cost (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value Measurements Disclosure [Line Items] | ||
Securities held-to-maturity-fixed maturity, Fair Value | $664,371 | $561,179 |
States and Political Subdivisions [Member] | ||
Fair Value Measurements Disclosure [Line Items] | ||
Securities held-to-maturity-fixed maturity, Fair Value | 405,665 | 399,155 |
Corporate Bonds [Member] | ||
Fair Value Measurements Disclosure [Line Items] | ||
Securities held-to-maturity-fixed maturity, Fair Value | 176,734 | 68,243 |
Commercial Mortgage-Backed Securities [Member] | ||
Fair Value Measurements Disclosure [Line Items] | ||
Securities held-to-maturity-fixed maturity, Fair Value | 48,529 | 54,244 |
U.S. Agency-Based Mortgage-Backed Securities [Member] | ||
Fair Value Measurements Disclosure [Line Items] | ||
Securities held-to-maturity-fixed maturity, Fair Value | 18,672 | 23,565 |
US Treasury Securities [Member] | ||
Fair Value Measurements Disclosure [Line Items] | ||
Securities held-to-maturity-fixed maturity, Fair Value | 11,792 | 6,602 |
Asset-Backed Securities [Member] | ||
Fair Value Measurements Disclosure [Line Items] | ||
Securities held-to-maturity-fixed maturity, Fair Value | 2,979 | 3,456 |
Obligations of U.S. Government Agencies [Member] | ||
Fair Value Measurements Disclosure [Line Items] | ||
Securities held-to-maturity-fixed maturity, Fair Value | 5,914 | |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value Measurements Disclosure [Line Items] | ||
Securities held-to-maturity-fixed maturity, Fair Value | 11,792 | 6,602 |
Fair Value, Inputs, Level 1 [Member] | US Treasury Securities [Member] | ||
Fair Value Measurements Disclosure [Line Items] | ||
Securities held-to-maturity-fixed maturity, Fair Value | 11,792 | 6,602 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value Measurements Disclosure [Line Items] | ||
Securities held-to-maturity-fixed maturity, Fair Value | 652,579 | 554,577 |
Fair Value, Inputs, Level 2 [Member] | States and Political Subdivisions [Member] | ||
Fair Value Measurements Disclosure [Line Items] | ||
Securities held-to-maturity-fixed maturity, Fair Value | 405,665 | 399,155 |
Fair Value, Inputs, Level 2 [Member] | Corporate Bonds [Member] | ||
Fair Value Measurements Disclosure [Line Items] | ||
Securities held-to-maturity-fixed maturity, Fair Value | 176,734 | 68,243 |
Fair Value, Inputs, Level 2 [Member] | Commercial Mortgage-Backed Securities [Member] | ||
Fair Value Measurements Disclosure [Line Items] | ||
Securities held-to-maturity-fixed maturity, Fair Value | 48,529 | 54,244 |
Fair Value, Inputs, Level 2 [Member] | U.S. Agency-Based Mortgage-Backed Securities [Member] | ||
Fair Value Measurements Disclosure [Line Items] | ||
Securities held-to-maturity-fixed maturity, Fair Value | 18,672 | 23,565 |
Fair Value, Inputs, Level 2 [Member] | Asset-Backed Securities [Member] | ||
Fair Value Measurements Disclosure [Line Items] | ||
Securities held-to-maturity-fixed maturity, Fair Value | 2,979 | 3,456 |
Fair Value, Inputs, Level 2 [Member] | Obligations of U.S. Government Agencies [Member] | ||
Fair Value Measurements Disclosure [Line Items] | ||
Securities held-to-maturity-fixed maturity, Fair Value | $5,914 |
Fair_Value_Measurements_Summar1
Fair Value Measurements - Summary of Changes in Fair Value of Assets Measured at Fair Value (Detail) (Fair Value, Inputs, Level 3 [Member], USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Measurements Disclosure [Line Items] | ||
Balance at beginning of year | $10,591 | |
Purchases | 10,000 | |
Total gains unrealized | 1,157 | 591 |
Balance at end of year | $11,748 | $10,591 |
Fair_Value_Measurements_Additi
Fair Value Measurements - Additional Information (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Fair Value Measurements Disclosure [Line Items] | ||
Securities held to maturity, fair value | $639,631 | $536,583 |
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value Measurements Disclosure [Line Items] | ||
Recognized impairment | 300 | |
Securities held to maturity, fair value | $400 |
Quarterly_Financial_Data_Unaud2
Quarterly Financial Data (Unaudited) - Unaudited Quarterly Financial Data (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Premiums earned | $97,070 | $95,928 | $93,516 | $89,233 | $86,695 | $81,596 | $81,983 | $79,709 | $375,747 | $329,983 | $290,689 |
Net investment income | 7,166 | 6,495 | 6,845 | 6,708 | 6,763 | 6,947 | 6,649 | 6,670 | 27,214 | 27,029 | 27,018 |
Net realized gains (losses) on investments | 516 | -152 | 232 | 101 | 710 | -654 | -1,291 | 24 | 697 | -1,211 | 2,979 |
Total revenues | 104,886 | 102,336 | 100,624 | 96,173 | 94,309 | 88,003 | 87,511 | 86,512 | 404,019 | 356,335 | 321,248 |
Income before income taxes | 23,936 | 19,348 | 17,061 | 13,404 | 25,030 | 12,447 | 10,647 | 11,080 | 73,749 | 59,204 | 37,143 |
Net income | 16,865 | 13,479 | 12,773 | 10,549 | 17,443 | 9,699 | 7,644 | 8,851 | 53,666 | 43,637 | 29,353 |
Net income available to common shareholders | 16,865 | 13,479 | 12,773 | 10,549 | 17,364 | 9,673 | 7,618 | 8,836 | 53,666 | 43,495 | 29,331 |
Earnings per share: | |||||||||||
Basic | $0.90 | $0.72 | $0.69 | $0.57 | $0.94 | $0.53 | $0.42 | $0.48 | $2.88 | $2.37 | $1.62 |
Diluted | $0.89 | $0.71 | $0.68 | $0.56 | $0.92 | $0.52 | $0.41 | $0.47 | $2.84 | $2.32 | $1.58 |
Comprehensive income | $17,597 | $13,596 | $15,789 | $13,789 | $15,819 | $8,654 | $3,584 | $8,306 | $60,771 | $36,363 | $30,117 |
Extraordinary cash dividends declared per common share | $1 | $0.50 | $1.50 | $0 | |||||||
Cash dividends declared per common share | $0.12 | $0.12 | $0.12 | $0.12 | $0.08 | $0.08 | $0.08 | $0.08 | $0.48 | $0.32 |
Capital_Management_Additional_
Capital Management - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 |
Equity [Abstract] | |||||||
Share repurchase new limit amount | $25 | $25 | $25 | ||||
Share repurchase program expiration date | 31-Dec-15 | ||||||
Shares repurchased | 1,258,250 | 1,258,250 | 1,258,250 | ||||
Shares repurchased, value | $22.40 | $22.40 | |||||
Shares repurchased, average price | $17.78 | ||||||
Quarterly dividend | $0.12 | $0.12 | $0.08 | ||||
Extraordinary cash dividends declared per common share | $1 | $0.50 | $1.50 | $0 |
Subsequent_Events_Additional_I
Subsequent Events - Additional Information (Detail) (USD $) | 0 Months Ended | 12 Months Ended | |||
In Millions, except Per Share data, unless otherwise specified | Feb. 11, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2015 | Feb. 24, 2015 |
Subsequent Event [Line Items] | |||||
Reserve for the claim | $2.70 | ||||
Additional reserve for the claim | 0.3 | ||||
Cash dividend per share | $0.12 | $0.08 | |||
Scenario, Forecast [Member] | |||||
Subsequent Event [Line Items] | |||||
Expected cash dividend per share | $0.60 | ||||
Subsequent Event [Member] | |||||
Subsequent Event [Line Items] | |||||
Total compensation claim | 25.3 | ||||
Subsequent Event [Member] | Plaintiff Seeking Actual Damages [Member] | |||||
Subsequent Event [Line Items] | |||||
Amount of damages | 0.3 | ||||
Subsequent Event [Member] | Plaintiff Seeking Punitive Damages [Member] | |||||
Subsequent Event [Line Items] | |||||
Amount of damages | $25 | ||||
Dividend Declared [Member] | |||||
Subsequent Event [Line Items] | |||||
Cash dividend per share | $0.12 | ||||
Date of payment to shareholders entitled to dividends | 27-Mar-15 | ||||
Date of record of shareholders entitled to dividends | 13-Mar-15 | ||||
Dividend Declared [Member] | Subsequent Event [Member] | |||||
Subsequent Event [Line Items] | |||||
Cash dividend per share | $0.15 |
Schedule_II_Condensed_Financia1
Schedule II. Condensed Financial Information of Registrant - Condensed Balance Sheets (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
Assets | ||||
Short-term investments | $33,684 | $84,422 | ||
Fixed-maturity securities-available-for-sale, at fair value | 331,242 | 237,877 | ||
Other investments | 11,748 | 10,591 | ||
Total investments | 1,016,333 | 878,775 | ||
Cash and cash equivalents | 90,956 | 123,077 | 92,676 | 45,536 |
Deferred income taxes | 31,231 | 33,645 | ||
Property and equipment, net | 7,240 | 7,549 | ||
Other assets | 14,287 | 8,637 | ||
Total assets | 1,457,220 | 1,329,001 | ||
Liabilities: | ||||
Accounts payable and other liabilities | 30,110 | 26,940 | ||
Total liabilities | 1,010,252 | 912,187 | ||
Shareholders' equity (net of Treasury stock of $22,370 at December 31, 2014 and 2013) | 446,968 | 416,814 | 381,222 | 349,437 |
Total liabilities and shareholders' equity | 1,457,220 | 1,329,001 | ||
Parent Company [Member] | ||||
Assets | ||||
Short-term investments | 250 | 248 | ||
Fixed-maturity securities-available-for-sale, at fair value | 965 | |||
Other investments | 11,748 | 10,591 | ||
Investment in subsidiaries | 387,954 | 352,193 | ||
Total investments | 399,952 | 363,997 | ||
Cash and cash equivalents | 43,585 | 47,726 | 31,792 | 14,887 |
Deferred income taxes | 1,001 | 1,383 | ||
Notes receivable from subsidiaries | -1 | 1,805 | ||
Property and equipment, net | 2,070 | 2,181 | ||
Other assets | 4,992 | 556 | ||
Total assets | 451,599 | 417,648 | ||
Liabilities: | ||||
Accounts payable and other liabilities | 3,853 | 834 | ||
Notes payable to subsidiaries | 778 | |||
Total liabilities | 4,631 | 834 | ||
Shareholders' equity (net of Treasury stock of $22,370 at December 31, 2014 and 2013) | 446,968 | 416,814 | ||
Total liabilities and shareholders' equity | $451,599 | $417,648 |
Schedule_II_Condensed_Financia2
Schedule II. Condensed Financial Information of Registrant - Condensed Balance Sheets (Parenthetical) (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Net of Treasury stock | $22,370 | $22,370 |
Parent Company [Member] | ||
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Net of Treasury stock | $22,370 | $22,370 |
Schedule_II_Condensed_Financia3
Schedule II. Condensed Financial Information of Registrant - Condensed Statements of Income (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenues | |||||||||||
Net investment income | $7,166 | $6,495 | $6,845 | $6,708 | $6,763 | $6,947 | $6,649 | $6,670 | $27,214 | $27,029 | $27,018 |
Fee and other income | 361 | 534 | 562 | ||||||||
Total revenues | 104,886 | 102,336 | 100,624 | 96,173 | 94,309 | 88,003 | 87,511 | 86,512 | 404,019 | 356,335 | 321,248 |
Expenses | |||||||||||
Interest expense | 566 | ||||||||||
Total expenses | 330,270 | 297,131 | 284,105 | ||||||||
Income tax expense (benefit) | 20,083 | 15,567 | 7,790 | ||||||||
Net income | 16,865 | 13,479 | 12,773 | 10,549 | 17,443 | 9,699 | 7,644 | 8,851 | 53,666 | 43,637 | 29,353 |
Parent Company [Member] | |||||||||||
Revenues | |||||||||||
Net investment income | 1,541 | 1,051 | 571 | ||||||||
Fee and other income | 5,368 | 5,453 | 4,765 | ||||||||
Total revenues | 6,909 | 6,504 | 5,336 | ||||||||
Expenses | |||||||||||
Other operating costs | 6,909 | 6,504 | 4,770 | ||||||||
Interest expense | 566 | ||||||||||
Total expenses | 6,909 | 6,504 | 5,336 | ||||||||
Income (loss) before income taxes and equity in earnings of subsidiaries | 0 | 0 | 0 | ||||||||
Income tax expense (benefit) | -13 | 6 | -9 | ||||||||
Gain (loss) before equity in earnings of subsidiaries | 13 | -6 | 9 | ||||||||
Equity in net income of subsidiaries | 53,653 | 43,643 | 29,344 | ||||||||
Net income | $53,666 | $43,637 | $29,353 |
Schedule_II_Condensed_Financia4
Schedule II. Condensed Financial Information of Registrant - Condensed Statements of Cash Flows (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Operating activities | |||
Net cash (used in) provided by operating activities | $140,440 | $128,903 | $81,048 |
Investing activities | |||
Purchases of property and equipment | -989 | -1,140 | -1,196 |
Net cash used in investing activities | -141,008 | -96,960 | -9,330 |
Financing activities | |||
Proceeds from stock option exercises | 2,674 | 2,344 | 781 |
Tax benefit from share-based payments | 2,841 | 2,024 | 421 |
Redemption of Subordinated Debt Security | -25,780 | ||
Dividends to shareholders | -37,068 | -5,910 | |
Net cash used in financing activities | -31,553 | -1,542 | -24,578 |
Change in cash and cash equivalents | -32,121 | 30,401 | 47,140 |
Cash and cash equivalents at beginning of year | 123,077 | 92,676 | 45,536 |
Cash and cash equivalents at end of year | 90,956 | 123,077 | 92,676 |
Parent Company [Member] | |||
Operating activities | |||
Net cash (used in) provided by operating activities | 2,161 | 1,829 | 5,149 |
Investing activities | |||
Purchases of investments | -1,462 | -10,248 | -23,361 |
Proceeds from sales of investments | 2,404 | 11,674 | 39,537 |
Purchases of property and equipment | -691 | -779 | -842 |
Dividends from subsidiary | 25,000 | 15,000 | 21,000 |
Net cash used in investing activities | 25,251 | 15,647 | 36,334 |
Financing activities | |||
Proceeds from stock option exercises | 2,674 | 2,344 | 781 |
Tax benefit from share-based payments | 2,841 | 2,024 | 421 |
Redemption of Subordinated Debt Security | -25,780 | ||
Dividends to shareholders | -37,068 | -5,910 | |
Net cash used in financing activities | -31,553 | -1,542 | -24,578 |
Change in cash and cash equivalents | -4,141 | 15,934 | 16,905 |
Cash and cash equivalents at beginning of year | 47,726 | 31,792 | 14,887 |
Cash and cash equivalents at end of year | $43,585 | $47,726 | $31,792 |
Schedule_VI_Supplemental_Infor1
Schedule VI. Supplemental Information Concerning Property-Casualty Insurance Operations (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Supplemental Information for Property, Casualty Insurance Underwriters [Abstract] | |||
Deferred Policy Acquisition Cost | $19,649 | $19,171 | $18,419 |
Reserves for Unpaid Loss and Loss Adjustment Expense | 687,602 | 614,557 | 570,450 |
Unearned Premium | 168,576 | 164,296 | 140,528 |
Earned Premium | 375,747 | 329,983 | 290,689 |
Net Investment Income | 27,214 | 27,029 | 27,018 |
Loss and LAE Related to Current Period | 268,633 | 241,584 | 222,393 |
Loss and LAE Related to Prior Periods | -23,717 | -12,611 | -2,490 |
Amortization of Deferred Policy Acquisition Costs | -43,817 | -40,526 | -39,120 |
Paid Claims and Claim Adjustment Expenses | 182,506 | 178,375 | 181,920 |
Net Premiums Written | $380,026 | $353,752 | $312,518 |