Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 14, 2020 | Jun. 30, 2019 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | AMSF | ||
Entity Registrant Name | AMERISAFE, INC. | ||
Entity Central Index Key | 0001018979 | ||
Entity Current Reporting Status | Yes | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity Shell Company | false | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity File Number | 001-12251 | ||
Entity Tax Identification Number | 75-2069407 | ||
Entity Address, Address Line One | 2301 Highway 190 West | ||
Entity Address, City or Town | DeRidder | ||
Entity Address, State or Province | LA | ||
Entity Address, Postal Zip Code | 70634 | ||
City Area Code | 337 | ||
Local Phone Number | 463-9052 | ||
Entity Common Stock, Shares Outstanding | 19,302,583 | ||
Entity Public Float | $ 1,219.4 | ||
Entity Incorporation, State or Country Code | TX | ||
Title of 12(b) Security | Common | ||
Security Exchange Name | NASDAQ | ||
Entity Interactive Data Current | Yes | ||
Documents Incorporated by Reference | DOCUMENTS INCORPORATED BY REFERENCE Portions of the Registrant’s Proxy Statement relating to the 2020 Annual Meeting of Shareholders are incorporated by reference in Items 10, 11, 12, 13 and 14 of Part III of this report. |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Investments: | ||
Fixed maturity securities—held-to-maturity, at amortized cost (fair value $621,343 and $616,772 in 2019 and 2018, respectively) | $ 599,421 | $ 613,878 |
Fixed maturity securities—available-for-sale, at fair value (amortized cost $425,698 and $479,772 in 2019 and 2018, respectively) | 441,146 | 478,730 |
Equity securities, at fair value (cost $24,457 and $19,962 in 2019 and 2018, respectively) | 27,903 | 18,651 |
Short-term investments | 56,548 | 14,231 |
Total investments | 1,125,018 | 1,125,490 |
Cash and cash equivalents | 43,813 | 40,344 |
Amounts recoverable from reinsurers | 95,913 | 112,006 |
Premiums receivable, net of allowance | 157,953 | 162,478 |
Deferred income taxes | 17,513 | 21,852 |
Accrued interest receivable | 9,730 | 10,197 |
Property and equipment, net | 6,331 | 6,258 |
Deferred policy acquisition costs | 19,048 | 19,734 |
Other assets | 17,587 | 17,572 |
Total assets | 1,492,906 | 1,515,931 |
Liabilities: | ||
Reserves for loss and loss adjustment expenses | 772,887 | 798,409 |
Unearned premiums | 140,873 | 149,296 |
Amounts held for others | 37,937 | 41,388 |
Policyholder deposits | 44,718 | 46,795 |
Insurance-related assessments | 22,967 | 28,258 |
Federal income tax payable | 3,220 | 3,412 |
Accounts payable and other liabilities | 40,089 | 38,611 |
Total liabilities | 1,062,691 | 1,106,169 |
Shareholders’ equity: | ||
Common stock: voting—$0.01 par value authorized shares—50,000,000 in 2019 and 2018; 20,560,833 and 20,528,230 shares issued and 19,302,583 and 19,269,980 shares outstanding in 2019 and 2018, respectively | 205 | 205 |
Additional paid-in capital | 213,004 | 211,431 |
Treasury stock, at cost (1,258,250 shares in 2019 and 2018) | (22,370) | (22,370) |
Accumulated earnings | 227,165 | 221,328 |
Accumulated other comprehensive income (loss), net | 12,211 | (832) |
Total shareholders’ equity | 430,215 | 409,762 |
Total liabilities and shareholders’ equity | $ 1,492,906 | $ 1,515,931 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Statement Of Financial Position [Abstract] | ||
Fixed maturity securities, fair value | $ 621,343 | $ 616,772 |
Fixed maturity securities, amortized cost | 425,698 | 479,772 |
Equity securities, cost | $ 24,457 | $ 19,962 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 20,560,833 | 20,528,230 |
Common stock, shares outstanding | 19,302,583 | 19,269,980 |
Treasury stock, shares | 1,258,250 | 1,258,250 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenues | |||
Net premiums earned | $ 332,888 | $ 350,326 | $ 346,156 |
Net investment income | 32,483 | 30,452 | 29,281 |
Net realized losses on investments | (80) | (1,536) | (647) |
Net unrealized gains (losses) on equity securities | 4,758 | (2,088) | |
Fee and other income | 321 | 599 | 418 |
Total revenues | 370,370 | 377,753 | 375,208 |
Expenses | |||
Loss and loss adjustment expenses incurred | 176,342 | 204,891 | 209,324 |
Underwriting and certain other operating costs | 22,221 | 28,981 | 28,333 |
Commissions | 25,010 | 26,160 | 24,812 |
Salaries and benefits | 27,120 | 25,992 | 25,631 |
Policyholder dividends | 4,160 | 4,148 | 4,868 |
Total expenses | 254,853 | 290,172 | 292,968 |
Income before income taxes | 115,517 | 87,581 | 82,240 |
Income tax expense | 22,827 | 15,949 | 36,009 |
Net income | $ 92,690 | $ 71,632 | $ 46,231 |
Earnings per share | |||
Basic | $ 4.82 | $ 3.73 | $ 2.41 |
Diluted | $ 4.80 | $ 3.71 | $ 2.40 |
Shares used in computing earnings per share | |||
Basic | 19,248,657 | 19,208,978 | 19,165,489 |
Diluted | 19,329,238 | 19,293,082 | 19,245,866 |
Extraordinary cash dividends declared per common share | $ 3.50 | $ 3.50 | $ 3.50 |
Cash dividends declared per common share | $ 1 | $ 0.88 | $ 0.80 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement Of Income And Comprehensive Income [Abstract] | |||||||||||
Net income | $ 34,014 | $ 21,386 | $ 17,890 | $ 19,400 | $ 18,806 | $ 19,701 | $ 16,956 | $ 16,169 | $ 92,690 | $ 71,632 | $ 46,231 |
Other comprehensive income: | |||||||||||
Unrealized gain (loss) on securities, net of tax | 13,043 | (4,243) | 4,104 | ||||||||
Comprehensive income | $ 33,610 | $ 23,862 | $ 23,068 | $ 25,193 | $ 105,733 | $ 67,389 | $ 50,335 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-In Capital [Member] | Treasury Stock [Member] | Accumulated Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] |
Beginning Balance at Dec. 31, 2016 | $ 456,150 | $ 204 | $ 208,390 | $ (22,370) | $ 270,418 | $ (492) |
Beginning Balance, Shares at Dec. 31, 2016 | 20,488,385 | |||||
Treasury Stock Beginning Balance, Shares at Dec. 31, 2016 | (1,258,250) | |||||
Comprehensive income: | ||||||
Net income | 46,231 | 46,231 | ||||
Other comprehensive income: | ||||||
Change in unrealized gains (losses), net of tax | 4,104 | 4,104 | ||||
Comprehensive income | 50,335 | |||||
Common stock issued | 396 | 396 | ||||
Common stock issued, Shares | 15,780 | |||||
Share-based compensation | 1,295 | 1,295 | ||||
Dividends to shareholders | (82,753) | (82,753) | ||||
Ending Balance at Dec. 31, 2017 | 425,423 | $ 204 | 210,081 | $ (22,370) | 233,896 | 3,612 |
Ending Balance, Shares at Dec. 31, 2017 | 20,504,165 | |||||
Treasury Stock Ending Balance, Shares at Dec. 31, 2017 | (1,258,250) | |||||
Impact of adoption of ASU | ASU 2016-01 [Member] | 615 | (615) | ||||
Impact of adoption of ASU | ASU 2018-02 [Member] | (414) | 414 | ||||
Comprehensive income: | ||||||
Net income | 71,632 | 71,632 | ||||
Other comprehensive income: | ||||||
Change in unrealized gains (losses), net of tax | (4,243) | (4,243) | ||||
Comprehensive income | 67,389 | |||||
Common stock issued upon exercise of options | 67 | 67 | ||||
Common stock issued upon exercise of options, Shares | 15,000 | |||||
Common stock issued | 196 | $ 1 | 195 | |||
Common stock issued, Shares | 9,065 | |||||
Share-based compensation | 1,088 | 1,088 | ||||
Dividends to shareholders | (84,401) | (84,401) | ||||
Ending Balance at Dec. 31, 2018 | $ 409,762 | $ 205 | 211,431 | $ (22,370) | 221,328 | (832) |
Ending Balance, Shares at Dec. 31, 2018 | 19,269,980 | 20,528,230 | ||||
Treasury Stock Ending Balance, Shares at Dec. 31, 2018 | (1,258,250) | (1,258,250) | ||||
Impact of adoption of ASU | ASU 2016-02 [Member] | $ (1) | (1) | ||||
Comprehensive income: | ||||||
Net income | 92,690 | 92,690 | ||||
Other comprehensive income: | ||||||
Change in unrealized gains (losses), net of tax | 13,043 | 13,043 | ||||
Comprehensive income | 105,733 | |||||
Common stock issued upon exercise of options | 20 | 20 | ||||
Common stock issued upon exercise of options, Shares | 5,000 | |||||
Common stock issued | 560 | 560 | ||||
Common stock issued, Shares | 27,603 | |||||
Share-based compensation | 993 | 993 | ||||
Dividends to shareholders | (86,852) | (86,852) | ||||
Ending Balance at Dec. 31, 2019 | $ 430,215 | $ 205 | $ 213,004 | $ (22,370) | $ 227,165 | $ 12,211 |
Ending Balance, Shares at Dec. 31, 2019 | 19,302,583 | 20,560,833 | ||||
Treasury Stock Ending Balance, Shares at Dec. 31, 2019 | (1,258,250) | (1,258,250) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Operating activities | |||
Net income | $ 92,690 | $ 71,632 | $ 46,231 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation | 942 | 996 | 984 |
Net amortization of investments | 8,659 | 10,787 | 14,015 |
Deferred income taxes | 872 | (1,462) | 12,800 |
Net realized losses on investments | 80 | 1,536 | 647 |
Net unrealized (gains) losses on equity securities | (4,758) | 2,088 | |
Net realized losses on disposal of assets | 3 | 2 | |
Share-based compensation | 2,351 | 2,065 | 2,018 |
Changes in operating assets and liabilities: | |||
Premiums receivable, net | 4,525 | 11,756 | 8,771 |
Accrued interest receivable | 467 | 438 | 725 |
Deferred policy acquisition costs | 686 | 517 | (951) |
Amounts held by others | (7,855) | 27,848 | |
Other assets | 710 | 1,873 | (1,882) |
Reserves for loss and loss adjustment expenses | (25,522) | 26,564 | 29,069 |
Unearned premiums | (8,423) | (7,974) | (4,758) |
Reinsurance balances | 16,093 | (21,873) | (6,495) |
Amounts held for others and policyholder deposits | (5,528) | 2,911 | 4,168 |
Accounts payable and other liabilities | (5,023) | 4,269 | (2,382) |
Net cash provided by operating activities | 78,824 | 98,268 | 130,810 |
Investing activities | |||
Purchases of investments held-to-maturity | (152,133) | (99,330) | (222,104) |
Purchases of investments available-for-sale | (63,513) | (124,128) | (108,517) |
Purchases of equity securities | (4,495) | (11,459) | (8,503) |
Purchases of short-term investments | (125,763) | (133,355) | (62,687) |
Proceeds from maturities of investments held-to-maturity | 159,702 | 99,984 | 152,995 |
Proceeds from sales and maturities of investments available-for-sale | 114,869 | 100,357 | 112,179 |
Proceeds from sales of equity securities | 3 | 1 | |
Proceeds from sales and maturities of short-term investments | 84,039 | 139,865 | 72,400 |
Proceeds from redemptions of other investments | 130 | 13,172 | |
Purchases of property and equipment | (1,018) | (1,126) | (478) |
Net cash provided by (used in) investing activities | 11,688 | (29,059) | (51,542) |
Financing activities | |||
Proceeds from stock option exercises | 20 | 67 | |
Finance lease purchases | (47) | ||
Dividends to shareholders | (87,016) | (84,491) | (82,645) |
Net cash used in financing activities | (87,043) | (84,424) | (82,645) |
Change in cash and cash equivalents | 3,469 | (15,215) | (3,377) |
Cash and cash equivalents at beginning of year | 40,344 | 55,559 | 58,936 |
Cash and cash equivalents at end of year | 43,813 | 40,344 | 55,559 |
Supplemental disclosure of cash flow information | |||
Income taxes paid | $ 20,850 | $ 11,235 | $ 28,255 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
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. 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 currently 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 Company and its consolidated subsidiaries. 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 small to mid-sized employers engaged in hazardous industries, principally construction, trucking, logging and lumber, manufacturing, agriculture, maritime, and oil and gas. Assets and revenues of AIIC and its subsidiaries represent at least 95% of comparable consolidated amounts of the Company for each of 2019, 2018 and 2017. 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, or 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. Adopted Accounting Guidance In January 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. This guidance requires fair value measurement for equity investments (not including those that result in consolidation of the investee or use the equity method of accounting) and the recognition of changes in fair value to be presented as a component of net income. The guidance also revises the disclosure requirements related to fair value changes of liabilities presented in comprehensive income, eliminates disclosure related to the methods and assumptions underlying fair value for financial instruments measured at amortized cost, and simplifies impairment assessments for equity investments without readily determinable fair values. The adoption of this new guidance in the first quarter of 2018 resulted in an immaterial decrease in net income of $390 thousand or a $0.02 decrease to our diluted earnings per common share. At December 31, 2017, equity investments were classified as available-for-sale on the Company’s balance sheet. However, upon adoption, the updated guidance eliminated the available-for-sale balance sheet classification for equity investments. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). The new guidance requires a lessee to recognize a lease liability and a right of use asset for all leases extending beyond twelve months. This standard was effective for us beginning in the first quarter of 2019. We elected the new transition method under the transition guidance within the new standard. Therefore, prior comparative periods were not adjusted. We also elected the package of practical expedients, which among other things, allows us to carryforward the historical lease classification. We made an accounting policy election not to recognize lease assets and lease liabilities for short-term operating leases. Adoption of the new guidance resulted in the Company recognizing right-of-use assets of $0.4 million and lease liabilities of $0.3 million. The cumulative effect adjustment to the opening balance of retained earnings was minimal. Adoption of this new guidance did not have a material effect on the Company’s consolidated financial statements as the Company does not have any significant leases. Prospective Accounting Guidance In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses. The current guidance delays the recognition of credit losses until a probable loss has occurred. The new guidance requires credit losses for securities measured at amortized cost to be determined using current expected credit loss estimates. These estimates are to be derived from historical, current and reasonable supporting forecasts, including prepayments and estimates, and will be recorded through a valuation account. The same method will be used for available-for-sale securities, but the valuation account will be limited to the amount by which the fair value is below amortized cost. The standard is effective for us in the first quarter of 2020. Implementation of the new guidance requires a modified retrospective approach without restatement, which means the first cumulative adjustment required will be a charge to retained earnings of $593 thousand, with subsequent changes in the valuation account reported in the income statement. The financial statement impact is determined by the nature of the portfolio held and the economic conditions at the time of implementation. In establishing a current expected credit allowance for held-to-maturity fixed income securities under the new accounting standard, the Company will use a probability of default and loss given default methodology based on the securities credit rating and maturity date of the specific security. The amount is currently estimated to be $308 thousand. This estimate is based on the Company’s portfolio of held-to-maturity fixed income securities, the credit ratings and maturity dates of those securities, at December 31, 2019. In establishing a current expected credit allowance for reinsurance recoverables under the new accounting standard, the Company will use a probability of default and loss given default methodology based on the credit ratings of our reinsurers. The amount is currently estimated to be $443 thousand. This estimate is based on the amount of reinsurance recoverables and the ratings of our reinsurers at December 31, 2019. The Company’s internal working group has evaluated the remainder of the balance sheet assets, including available-for-sale securities and net premiums receivable, and determined the implementation of the new credit loss guidance in relation to those assets will have an immaterial impact on the financial statements. All other issued but not yet effective accounting and reporting standards as of December 31, 2019 are either not applicable to the Company or are not expected to have a material impact on the Company. 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. 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. Changes in the fair value of equity securities are recorded in net income. 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. 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 with an original maturity of 90 days or less. Short-Term Investments Short-term investments include municipal securities and corporate bonds with an original maturity greater than 90 days but less than one year. 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 2019, 2018 or 2017. 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. In establishing our reserves for loss and loss adjustment expenses, we review the results of analyses using individual case-base valuations and statistical and actuarial methods that utilize historical loss data from our more than 34 years of underwriting workers’ compensation insurance. The actuarial analysis of our historical data provides the factors we use in estimating our loss reserves. These factors are primarily measures over time of the number of claims paid and reported, average paid and incurred claim amounts, claim closure rates and claim payment patterns. In evaluating the results of our analyses, management also uses substantial judgment in considering other factors that are not considered in these actuarial analyses, including changes in business mix, claims management, regulatory issues, medical trends, employment and wage patterns, insurance policy coverage interpretations, judicial determinations and other subjective factors. Due to the inherent uncertainty associated with these estimates, and the cost of incurred but unreported claims, our actual liabilities may vary significantly from our original estimates. 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 such adjustments are included in income from 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 economic conditions, 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 income from current operations. Experience-rated commissions had no impact on underwriting and certain other operating costs in 2019 and increased underwriting and certain other operating costs by $0.2 million in 2018 and 2017. In December 2019, the Company commuted reinsurance agreements with Hannover Reinsurance (Ireland) Limited (“Hannover”) covering portions of accident years 2009 through 2011. The Company received an $8.5 million payment effectuated solely through offset against the balance of the funds withheld and recoverable from reinsurers accounts under the reinsurance agreements in exchange for releasing Hannover from their reinsurance obligations under the commuted agreements. Hannover remains obligated to the subsidiaries of the Company under other reinsurance agreements. There was no effect on the Company’s net income in the year ended December 31, 2019 as a result of the commutation. 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 $0.4 million in 2019 and $0.5 million in 2018 and 2017. 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. 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. 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. Share-Based Compensation The Company recognizes the impact of its share-based compensation in accordance with FASB ASC Topic 718, Compensation-Stock Compensation. |
Investments
Investments | 12 Months Ended |
Dec. 31, 2019 | |
Investments Debt And Equity Securities [Abstract] | |
Investments | 2. Investments Short-term investments held at December 31, 2019 include $54.6 million of U.S. Treasury securities and obligations of U.S. government agencies and $1.9 million of obligations of states and political subdivisions. Short-term investments held at December 31, 2018 include $13.4 million of corporate bonds and $0.8 million of obligations of states and political subdivisions. 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, 2019 are summarized as follows: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (in thousands) States and political subdivisions $ 466,270 $ 19,570 $ (193 ) $ 485,647 Corporate bonds 109,241 1,684 — 110,925 U.S. agency-based mortgage-backed securities 10,967 544 — 11,511 U.S. Treasury securities and obligations of U.S. government agencies 12,723 330 (12 ) 13,041 Asset-backed securities 220 — (1 ) 219 Totals $ 599,421 $ 22,128 $ (206 ) $ 621,343 The gross unrealized gains and losses on, and the amortized cost and fair value of, those investments classified as available-for-sale at December 31, 2019 are summarized as follows: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (in thousands) States and political subdivisions $ 225,895 $ 11,906 $ (26 ) $ 237,775 Corporate bonds 130,453 3,326 (1 ) 133,778 U.S. agency-based mortgage-backed securities 29,499 64 (96 ) 29,467 U.S. Treasury securities and obligations of U.S. government agencies 39,851 317 (42 ) 40,126 Totals $ 425,698 $ 15,613 $ (165 ) $ 441,146 The gross unrealized gains and losses on, and the cost of equity securities at December 31, 2019 are summarized as follows: Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (in thousands) Equity securities: Domestic common stock $ 24,457 $ 3,446 $ — $ 27,903 Total equity securities $ 24,457 $ 3,446 $ — $ 27,903 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, 2018 are summarized as follows: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (in thousands) States and political subdivisions $ 445,922 $ 5,109 $ (2,084 ) $ 448,947 Corporate bonds 91,762 62 (455 ) 91,369 U.S. agency-based mortgage-backed securities 8,102 327 (80 ) 8,349 U.S. Treasury securities and obligations of U.S. government agencies 67,042 340 (339 ) 67,043 Asset-backed securities 1,050 22 (8 ) 1,064 Totals $ 613,878 $ 5,860 $ (2,966 ) $ 616,772 The gross unrealized gains and losses on, and the amortized cost and fair value of, those investments classified as available-for-sale at December 31, 2018 are summarized as follows: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (in thousands) States and political subdivisions $ 231,848 $ 3,515 $ (2,118 ) $ 233,245 Corporate bonds 173,904 243 (933 ) 173,214 U.S. agency-based mortgage-backed securities 12,835 — (320 ) 12,515 U.S. Treasury securities and obligations of U.S. government agencies 61,185 — (1,429 ) 59,756 Totals $ 479,772 $ 3,758 $ (4,800 ) $ 478,730 The gross unrealized gains and losses on, and the cost of equity securities at December 31, 2018 are summarized as follows: Cost Gross Gains Gross Losses Fair Value (in thousands) Equity securities: Domestic common stock $ 19,962 $ 30 $ (1,341 ) $ 18,651 Total equity securities $ 19,962 $ 30 $ (1,341 ) $ 18,651 A summary of the amortized cost and fair value of investments in fixed maturity securities classified as held-to-maturity by contractual maturity is as follows: December 31, 2019 December 31, 2018 Amortized Cost Fair Value Amortized Cost Fair Value (in thousands) Maturity: Within one year $ 49,967 $ 50,348 $ 76,875 $ 76,861 After one year through five years 198,025 202,109 256,614 257,530 After five years through ten years 110,460 113,877 81,311 81,755 After ten years 229,782 243,279 189,926 191,213 U.S. agency-based mortgage-backed securities 10,967 11,511 8,102 8,349 Asset-backed securities 220 219 1,050 1,064 Totals $ 599,421 $ 621,343 $ 613,878 $ 616,772 A summary of the amortized cost and fair value of investments in fixed maturity securities classified as available-for-sale by contractual maturity is as follows: December 31, 2019 December 31, 2018 Amortized Cost Fair Value Amortized Cost Fair Value (in thousands) Maturity: Within one year $ 27,160 $ 27,194 $ 61,650 $ 61,435 After one year through five years 144,142 146,469 175,743 174,213 After five years through ten years 47,175 49,419 47,058 46,725 After ten years 177,722 188,597 182,486 183,842 U.S. agency-based mortgage-backed securities 29,499 29,467 12,835 12,515 Totals $ 425,698 $ 441,146 $ 479,772 $ 478,730 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, 2019, there were $15.9 million of held-to-maturity investments and $2.5 million of available-for-sale 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 2019, 2018 and 2017 is as follows: Fixed Maturity Securities Available for Sale Equity Securities Other Total (in thousands) Year ended December 31, 2019 Proceeds from sales $ 33,113 $ — $ 21,977 $ 55,090 Gross realized investment gains $ 140 $ — $ 36 $ 176 Gross realized investment losses (68 ) — — (68 ) Net realized investment gains 72 — 36 108 Other, including gains (losses) on calls and redemptions (196 ) — 8 (188 ) Net realized gains (losses) on investments $ (124 ) $ — $ 44 $ (80 ) Year ended December 31, 2018 Proceeds from sales $ 15,025 $ 3 $ — $ 15,028 Gross realized investment gains $ 238 $ 1 $ — $ 239 Gross realized investment losses (1,354 ) — — (1,354 ) Net realized investment gains (losses) (1,116 ) 1 — (1,115 ) Other, including losses on calls and redemptions (144 ) — (277 ) (421 ) Net realized gains (losses) on investments $ (1,260 ) $ 1 $ (277 ) $ (1,536 ) Year ended December 31, 2017 Proceeds from sales $ 14,591 $ 1 $ 13,172 $ 27,764 Gross realized investment gains $ 485 $ 1 $ — $ 486 Gross realized investment losses (5 ) — — (5 ) Net realized investment gains 480 1 — 481 Other, including losses on calls and redemptions (520 ) — (608 ) (1,128 ) Net realized gains (losses) on investments $ (40 ) $ 1 $ (608 ) $ (647 ) Major categories of the Company’s net investment income are summarized as follows: Year Ended December 31, 2019 2018 2017 (in thousands) Gross investment income: Fixed maturity securities $ 30,343 $ 28,762 $ 28,961 Equity securities 628 448 201 Short-term investments and cash and cash equivalents 2,478 2,208 1,117 Other investments — — 104 Total gross investment income 33,449 31,418 30,383 Investment expenses (966 ) (966 ) (1,102 ) Net investment income $ 32,483 $ 30,452 $ 29,281 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 Investments with Unrealized Losses Gross Unrealized Losses Fair Value of Investments with Unrealized Losses Gross Unrealized Losses Fair Value of Investments with Unrealized Losses Gross Unrealized Losses (in thousands) December 31, 2019 Held-to-Maturity Fixed maturity securities: States and political subdivisions $ 21,074 $ 193 $ — $ — $ 21,074 $ 193 U.S. Treasury securities and obligations of U.S. government agencies — — 3,243 12 3,243 12 Asset-backed securities — — 68 1 68 1 Total held-to-maturity securities 21,074 193 3,311 13 24,385 206 Available-for-Sale Fixed maturity securities: States and political subdivisions $ 4,140 $ 26 $ — $ — $ 4,140 $ 26 Corporate bonds 6,426 1 — — 6,426 1 U.S. agency-based mortgage-backed securities 13,007 95 1,152 1 14,159 96 U.S. Treasury securities and obligations of U.S. government agencies — — 17,068 42 17,068 42 Total available-for-sale securities 23,573 122 18,220 43 41,793 165 Total $ 44,647 $ 315 $ 21,531 $ 56 $ 66,178 $ 371 December 31, 2018 Held-to-Maturity Fixed maturity securities: States and political subdivisions $ 28,369 $ 59 $ 180,550 $ 2,025 $ 208,919 $ 2,084 Corporate bonds 17,448 36 48,315 419 65,763 455 U.S. agency-based mortgage-backed securities — — 2,287 80 2,287 80 U.S. Treasury securities and obligations of U.S. government agencies 2,865 4 46,486 335 49,351 339 Asset-backed securities — — 525 8 525 8 Total held-to-maturity securities 48,682 99 278,163 2,867 326,845 2,966 Available-for-Sale Fixed maturity securities: States and political subdivisions $ 16,109 $ 81 $ 76,255 $ 2,037 $ 92,364 $ 2,118 Corporate bonds 59,099 279 70,306 654 129,405 933 U.S. agency-based mortgage-backed securities — — 12,515 320 12,515 320 U.S. Treasury securities and obligations of U.S. government agencies — — 59,756 1,429 59,756 1,429 Total available-for-sale securities 75,208 360 218,832 4,440 294,040 4,800 Equity securities: Domestic common stock $ 18,651 $ 1,341 $ — $ — $ 18,651 $ 1,341 Total equity securities 18,651 1,341 — — 18,651 1,341 Total $ 142,541 $ 1,800 $ 496,995 $ 7,307 $ 639,536 $ 9,107 At December 31, 2019, the Company held 59 individual fixed maturity securities that were in an unrealized loss position, of which 11 were in a continuous unrealized loss position for longer than 12 months. We regularly review our investment portfolio to evaluate the existence of other-than-temporary declines in the fair value of investments. We consider various factors in determining if a decline in the fair value of an individual security is other-than-temporary. The key factors we consider are : • any reduction or elimination of preferred 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. We reviewed all securities with unrealized losses in accordance with the impairment policy described above. We 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. 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 securities before the recovery of its amortized cost basis. In 2019, 2018 and 2017, there were no impairment losses recognized for other-than-temporary declines in the fair value of our investments. |
Premiums Receivable
Premiums Receivable | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 2018 (in thousands) Premiums receivable $ 163,065 $ 167,868 Allowance for doubtful accounts (5,112 ) (5,390 ) Premiums receivable, net $ 157,953 $ 162,478 The following summarizes the activity in the allowance for doubtful accounts: December 31, 2019 2018 (in thousands) Balance, beginning of year $ 5,390 $ 5,226 Provision for bad debts 723 883 Write-offs (1,001 ) (719 ) Balance, end of year $ 5,112 $ 5,390 Included in premiums receivable at December 31, 2019, 2018 and 2017 is the Company’s estimate for EBUB premium of $8.5 million, $7.5 million and $6.3 million, respectively. |
Deferred Policy Acquisition Cos
Deferred Policy Acquisition Costs | 12 Months Ended |
Dec. 31, 2019 | |
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 the renewal of existing insurance policies. We defer incremental costs that result directly from, and are essential to, the acquisition or renewal of an insurance policy. 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, 2019 2018 (in thousands) Agents’ commissions $ 14,290 $ 14,953 Premium taxes 2,960 3,161 Deferred underwriting expenses 1,798 1,620 Total deferred policy acquisition costs $ 19,048 $ 19,734 The following summarizes the activity in the deferred policy acquisition costs: Year Ended December 31, 2019 2018 2017 (in thousands) Balance, beginning of year $ 19,734 $ 20,251 $ 19,300 Policy acquisition costs deferred 43,872 45,252 43,960 Amortization expense during the year (44,558 ) (45,769 ) (43,009 ) Balance, end of year $ 19,048 $ 19,734 $ 20,251 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2019 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment | 5. Property and Equipment Property and equipment consist of the following: December 31, 2019 2018 (in thousands) Land and office building $ 7,819 $ 7,798 Furniture and equipment 6,097 6,150 Software 7,366 7,339 Automobiles 74 74 Finance lease right-of-use assets 185 — 21,541 21,361 Accumulated depreciation and amortization (15,210 ) (15,103 ) Property and equipment, net $ 6,331 $ 6,258 Accumulated depreciation and amortization includes $179,000 that is related to equipment held under finance leases at December 31, 2019. Furniture and equipment included property held under capital leases of $184,000 at December 31, 2018. Accumulated depreciation includes $120,000 that is related to these properties at December 31, 2018. The lease liabilities related to these properties are included in accounts payable and other liabilities. |
Reinsurance
Reinsurance | 12 Months Ended |
Dec. 31, 2019 | |
Insurance [Abstract] | |
Reinsurance | 6. Reinsurance The Company cedes certain premiums and losses to various reinsurers under 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 2019, 2018 and 2017 was as follows: 2019 Premiums 2018 Premiums 2017 Premiums Written Earned Written Earned Written Earned (in thousands) Gross $ 333,460 $ 341,883 $ 351,696 $ 359,670 $ 350,267 $ 355,025 Ceded (8,995 ) (8,995 ) (9,344 ) (9,344 ) (8,869 ) (8,869 ) Net premiums $ 324,465 $ 332,888 $ 342,352 $ 350,326 $ 341,398 $ 346,156 The amounts recoverable from reinsurers consist of the following: December 31, 2019 2018 (in thousands) Unpaid losses recoverable: Case basis $ 82,252 $ 76,525 Incurred but not reported 13,090 30,691 Paid losses recoverable 571 325 Experience-rated commissions recoverable — 4,465 Total $ 95,913 $ 112,006 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, 2019, there were no paid losses recoverable past due. Experience-rated commissions recoverable represents earned commission from reinsurance companies based on the financial results of the applicable risks ceded to the reinsurers. These amounts declined during 2019 as a result of the December 2019 commutation of the 2009 - 2011 reinsurance agreement with Hannover. The Company received reinsurance recoveries of $2.0 million in 2019, $1.3 The Company generally secures large reinsurance recoverable balances with various forms of collateral, including funds withheld accounts, irrevocable letters of credit and secured trusts. At December 31, 2019, reinsurance recoverables from reinsurers that exceeded 1.5% of statutory surplus of the Company’s insurance subsidiaries are shown below. Reinsurer A.M. Best Rating Amounts Recoverable as of December 31, 2019 (in thousands) Hannover Reinsurance (Ireland) Limited (1) A+ $ 43,543 Allianz Risk Transfer AG (Bermuda) A+ 11,484 Odyssey America Reinsurance Corporation A 11,273 Minnesota Workers' Compensation Reinsurance Association (1) NR 6,293 Other reinsurers 23,320 Total amounts recoverable from reinsurers 95,913 Funds withheld and letters of credit related to the above recoverables (58,246 ) Total unsecured amounts recoverable from reinsurers $ 37,667 (1) Current participant in our 2020 reinsurance program. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 7. Income Taxes The Company’s deferred income tax assets and liabilities are as follows: December 31, 2019 2018 (in thousands) Deferred income tax assets: Discounting of net unpaid loss and loss adjustment expenses $ 19,985 $ 21,377 Unearned premiums 7,638 8,069 Accrued expenses and other 2,612 2,636 State income tax 2,484 855 Accrued policyholder dividends 2,330 2,188 Impaired securities — 21 Capital loss carryforward 20 — Accrued insurance-related assessments 2,672 3,139 Net unrealized loss on securities — 496 Total deferred tax assets 37,741 38,781 Less: Valuation allowance (2,025 ) — Net deferred tax assets 35,716 38,781 Deferred income tax liabilities: Deferred policy acquisition costs (4,838 ) (5,207 ) Callable bond amortization (2 ) (5 ) Unrealized gain on securities available-for-sale (3,970 ) — Property and equipment and other (271 ) (178 ) Salvage and subrogation (636 ) (719 ) Loss reserves adjustment due to the Tax Act (8,486 ) (10,820 ) Total deferred income tax liabilities (18,203 ) (16,929 ) Net deferred income taxes $ 17,513 $ 21,852 The components of consolidated income tax expense (benefit) are as follows: Year Ended December 31, 2019 2018 2017 (in thousands) Current: Federal $ 20,658 $ 16,407 $ 22,477 State 1,297 1,004 732 21,955 17,411 23,209 Deferred: Federal 732 (1,389 ) 12,965 State 140 (73 ) (165 ) 872 (1,462 ) 12,800 Total $ 22,827 $ 15,949 $ 36,009 As of December 31, 2019, the Company had a valuation allowance of $2.0 million against its deferred income tax benefits. During 2018 and 2017, there was no valuation allowance on the Company’s deferred income tax assets and liabilities. Income tax expense from operations is different from the amount computed by applying the U.S. federal income tax statutory rate of 21% in 2019 and 2018, and 35% in 2017 to income before income taxes as follows: Year Ended December 31, 2019 2018 2017 (in thousands) Income tax computed at federal statutory tax rate $ 24,258 $ 18,392 $ 28,784 Tax-exempt interest, net (2,999 ) (2,965 ) (5,707 ) State income tax 1,178 720 311 Dividends received deduction (59 ) (44 ) (48 ) Revaluation of net deferred income tax assets — — 12,620 Other 449 (154 ) 49 $ 22,827 $ 15,949 $ 36,009 On December 22, 2017, the Tax Act was signed into law making significant changes to the Internal Revenue Code. Changes include, but are not limited to, a corporate tax rate decrease from 35% to 21% effective for tax years beginning after December 31, 2017. As a result, we recorded $12.6 million as additional income tax expense related to our net deferred tax assets revalued at the new lower rate of 21% in the fourth quarter of 2017, the period in which the legislation was enacted. In December 2018, the IRS released its guidance for determining the Tax Act transition adjustment related to the discounting of loss reserves. During the period ended December 31, 2018, the Company recorded an increase in its deferred tax assets and a corresponding increase in its deferred tax liabilities as a result of the transition adjustment, which had no impact on tax expense recognized in 2018. 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, 2019, 2018 and 2017. Tax years 2016 through 2019 are subject to examination by the federal and state taxing authorities. |
Line of Credit
Line of Credit | 12 Months Ended |
Dec. 31, 2019 | |
Text Block [Abstract] | |
Line of Credit | 8. Line of Credit The Company has an agreement providing for a line of credit in the maximum amount of $20.0 million with Frost Bank. The agreement expires in December 2022 |
Loss and Loss Adjustment Expens
Loss and Loss Adjustment Expenses | 12 Months Ended |
Dec. 31, 2019 | |
Insurance [Abstract] | |
Loss and Loss Adjustment Expenses | 9. Loss and Loss Adjustment Expenses The following development tables provide the incurred and paid losses and allocated loss adjustment expenses, net of reinsurance, for workers’ compensation and general liability for accident years 2010 through 2019. The incurred but not reported (“IBNR”) losses and claims frequency is included for each accident year presented. Incurred Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance As of For the Years Ended December 31, December 31, 2019 (Dollars in thousands) Total IBNR Plus Expected Cumulative Development Number of Accident Unaudited (1) on Reported Claims Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Claims Reported 2010 $ 179,156 $ 202,479 $ 208,035 $ 205,769 $ 198,861 $ 193,029 $ 191,000 $ 189,403 $ 189,040 $ 188,096 $ 5,093 5,971 2011 — 196,384 199,522 199,163 198,213 195,262 192,988 191,126 189,327 188,226 6,008 6,044 2012 — — 222,549 222,075 212,738 193,515 184,460 182,859 180,387 178,586 6,834 5,749 2013 — — — 241,810 241,811 233,656 220,457 214,701 210,588 209,184 8,803 5,766 2014 — — — — 268,846 268,846 249,097 235,058 226,933 218,386 6,534 5,838 2015 — — — — — 262,573 262,573 252,514 235,471 220,965 12,488 5,515 2016 — — — — — — 250,491 250,491 241,406 218,005 11,377 5,390 2017 — — — — — — — 244,094 244,098 234,587 14,636 5,199 2018 — — — — — — — — 250,487 250,487 13,900 5,451 2019 — — — — — — — — — 241,344 18,973 4,959 Total $ 2,147,866 $ 104,646 Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, (Dollars in thousands) Accident Unaudited (1) Claim Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Frequency (2) 2010 $ 47,520 $ 108,714 $ 141,029 $ 156,974 $ 165,834 $ 169,565 $ 172,426 $ 175,019 $ 176,663 $ 177,331 24.94 2011 — 53,329 111,029 140,831 153,968 161,639 165,967 167,757 169,994 170,785 22.82 2012 — — 50,579 107,467 133,658 149,161 154,553 157,207 159,807 161,014 18.73 2013 — — — 51,396 119,507 150,304 165,994 172,479 177,724 180,614 16.55 2014 — — — — 53,060 119,820 153,320 169,736 180,683 186,129 14.99 2015 — — — — — 54,141 121,599 151,818 170,461 182,053 14.25 2016 — — — — — — 52,238 115,713 143,016 156,861 14.22 2017 — — — — — — — 56,951 122,552 151,427 14.64 2018 — — — — — — — — 62,061 126,057 15.16 2019 — — — — — — — — — 58,883 14.50 Total 1,551,154 All outstanding liabilities before 2010, net of reinsurance 80,832 Liabilities for loss and loss adjustment expenses, net of reinsurance 677,544 (1) Data presented for these calendar years is required supplementary information, which is unaudited. (2) Frequency, as calculated above, refers to reported claims divided by gross premium earned. The average annual percentage payout of incurred losses by age, net of reinsurance, for workers’ compensation and general liability as of December 31, 2019 is summarized below. Since workers’ compensation has long payout periods, the table below shows less than 100% in the years disclosed. This is required supplementary information, which is unaudited. Average Annual Percentage Payout of Incurred Losses by Age, Net of Reinsurance (Unaudited) Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 25.3% 30.1% 14.5% 7.7% 4.2% 2.2% 1.3% 1.1% 0.6% 0.4% The following table provides a reconciliation of the beginning and ending reserve balances, net of related amounts recoverable from reinsurers, for 2019, 2018 and 2017: Year Ended December 31, 2019 2018 2017 (in thousands) Balance, beginning of period $ 798,409 $ 771,845 $ 742,776 Less amounts recoverable from reinsurers on unpaid loss and loss adjustment expenses 107,216 84,889 78,256 Net balance, beginning of period 691,193 686,956 664,520 Add incurred related to: Current accident year 241,344 250,487 244,094 Prior accident years (65,002 ) (45,596 ) (34,770 ) Total incurred 176,342 204,891 209,324 Less paid related to: Current accident year 58,883 62,061 56,951 Prior accident years 131,108 138,593 129,937 Total paid 189,991 200,654 186,888 Net balance, end of period 677,544 691,193 686,956 Add amounts recoverable from reinsurers on unpaid loss and loss adjustment expenses 95,343 107,216 84,889 Balance, end of period $ 772,887 $ 798,409 $ 771,845 The foregoing reconciliation reflects favorable development of the net reserves at December 31, 2019, 2018 and 2017. The favorable development reduced loss and loss adjustment expenses incurred by $65.0 million in 2019, driven primarily by accident years 2016 and 2015 of $23.4 million and $14.5 million, respectively. In 2018 and 2017, the Company recorded favorable development of $45.6 million and $34.8 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. Multiple factors can cause loss development both unfavorable and favorable. The favorable loss development we experienced across accident years was largely due to favorable case reserve development and continued favorable severity trends compared to those originally estimated. Reserves established for workers’ compensation insurance includes 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, 2019 2018 2017 (in thousands) Reserves for loss and LAE at beginning of year $ 1,555 $ 1,748 $ 1,487 Incurred losses and LAE during the current year (183 ) 108 556 Loss and LAE payments (49 ) (301 ) (295 ) Reserves for loss and LAE at end of year $ 1,323 $ 1,555 $ 1,748 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 industry’s 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. In establishing our reserves for loss and loss adjustment expenses, we review the results of analyses using individual case-base valuations and statistical and actuarial methods that utilize historical loss data from our more than 34 years of underwriting workers’ compensation insurance. The actuarial analysis of our historical data provides the factors we use in estimating our loss reserves. These factors are primarily measures over time of the number of claims paid and reported, average paid and incurred claim amounts, claim closure rates and claim payment patterns. In evaluating the results of our analyses, management also uses substantial judgment in considering other factors that are not considered in these actuarial analyses, including changes in business mix, claims management, regulatory issues, medical trends, employment and wage patterns, insurance policy coverage interpretations, judicial determinations and other subjective factors. Due to the inherent uncertainty associated with these estimates, and the cost of incurred but unreported claims, our actual liabilities may vary significantly from our original estimates. These anticipated trends are monitored based on actual development and are modified if necessary. |
Statutory Accounting and Regula
Statutory Accounting and Regulatory Requirements | 12 Months Ended |
Dec. 31, 2018 | |
Insurance [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, 2019, 2018 and 2017 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, 2019, were as follows: 2019 2018 2017 (in thousands) Capital and surplus $ 359,952 $ 383,575 $ 382,062 Net income 92,301 72,979 61,628 Net realized losses on investments (80 ) (1,536 ) (647 ) Property and casualty insurance companies are subject to certain risk-based capital requirements, or 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, 2019, 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 greater 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 $115.9 million in dividends to the Company in 2019, $65.4 million in 2018 and $78.9 million in 2017. Based upon the dividend limitation described above, AIIC could pay to the Company dividends of up to $88.6 million in 2020 without seeking regulatory approval. |
Capital Stock
Capital Stock | 12 Months Ended |
Dec. 31, 2019 | |
Equity [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, 2019, there were 20,560,833 shares of common stock issued and 19,302,583 shares outstanding. Preferred Stock The Company is authorized to issue 10,000,000 shares of preferred stock, par value $0.01 per share. At December 31, 2019, there were no shares of preferred stock outstanding. |
Stock Options and Restricted St
Stock Options and Restricted Stock | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Compensation Related Costs Sharebased 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 was designed to provide incentive compensation to executive officers and other key management personnel. The 2005 Incentive Plan permitted 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 grants were made under the 2005 Incentive Plan. As of December 31, 2019, there are no outstanding options or restricted stock awards under the 2005 Incentive Plan. Stock options granted under the 2005 Incentive Plan were exercisable, subject to vesting requirements determined by the Compensation Committee, for periods of up to ten years from the date of grant. 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 used 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 were developed by considering the Company’s historical attrition rate for those employees at the officer level, who were eligible to receive options. Further, the Company aggregated individual awards into homogenous groups based upon grant date. Expected volatility was 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 was 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 option activity under the 2005 Incentive Plan: Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Life (in years) Outstanding at January 1, 2017 20,000 8.71 3.1 Granted — — — Exercised — — — Canceled, forfeited, or expired — — — Outstanding at December 31, 2017 20,000 5.21 2.1 Exercisable at December 31, 2017 20,000 5.21 2.1 Outstanding at January 1, 2018 20,000 5.21 2.1 Granted — — — Exercised (15,000 ) 4.46 0.9 Canceled, forfeited, or expired — — — Outstanding at December 31, 2018 5,000 3.95 1.9 Exercisable at December 31, 2018 5,000 3.95 1.9 Outstanding at January 1, 2019 5,000 3.95 1.9 Granted — — — Exercised (5,000 ) 3.95 0.9 Canceled, forfeited, or expired — — — Outstanding at December 31, 2019 — — — Exercisable at December 31, 2019 — — — 2019 2018 2017 (in thousands) Cash received from option exercises $ 20 $ 67 $ — Total intrinsic value of options exercised 287 766 — Aggregate intrinsic value of vested options outstanding — 264 1,128 The following table summarizes information about the restricted stock activity under the 2005 Incentive Plan: Shares Weighted- Average Grant- Date Fair Value per Share Nonvested balance at January 1, 2017 800 27.35 Granted — — Vested (800 ) 27.35 Forfeited — — Nonvested balance at December 31, 2017 — — Granted — — Vested — — Forfeited — — Nonvested balance at December 31, 2018 — — Granted — — Vested — — Forfeited — — Nonvested balance at December 31, 2019 — — The Company recognized no compensation expense in 2019 and $12,000 in 2018 and $56,000 in 2017, related to awards made under the 2005 Incentive Plan. 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, 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 2019, 9,391 shares of common stock and 13,322 shares of restricted stock were granted under the 2012 Incentive Plan, which will vest through 2024. In 2018, 3,304 shares of common stock were granted under the 2012 Incentive Plan. At December 31, 2019, there were 320,434 shares of common stock available for future awards under the 2012 Incentive Plan. The following table summarizes information about the common and restricted stock activity under the 2012 Incentive Plan: Shares Weighted- AverageGrant- Date Fair Value per Share Nonvested balance at January 1, 2017 76,392 43.91 Granted 9,326 55.58 Vested (24,839 ) 43.89 Forfeited — — Nonvested balance at December 31, 2017 60,879 45.71 Granted 3,304 59.16 Vested (24,608 ) 44.31 Forfeited — — Nonvested balance at December 31, 2018 39,575 48.93 Granted 22,713 61.08 Vested (29,760 ) 51.86 Forfeited — — Nonvested balance at December 31, 2019 32,528 54.02 The Company recognized compensation expense of $676,000, $726,000 and $884,000 in 2019, 2018 and 2017, respectively, related to share-based grants. The Company recognized compensation expense of $1,359,000, $976,000 and $724,000 in 2019, 2018 and 2017, respectively, related to long-term incentive awards under the 2012 Incentive Plan. The long-term incentive award is a liability award. Non-Employee Director Restricted Stock Plan The AMERISAFE Non-Employee Director Restricted Stock Plan (the “Restricted Stock 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 Restricted Stock Plan is 150,000 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, 2019, there were 53,017 shares of common stock available for future awards under the Restricted Stock Plan. Under the Restricted Stock Plan, each non-employee director is automatically granted a restricted stock award for a number of shares equal to $50,000 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. Under the terms of the Restricted Stock Plan, the Company’s Board of Directors may increase the dollar amount of the annual award to an amount up to $75,000 without further shareholder approval. As of December 31, 2019, there were 4,890 shares of restricted stock outstanding under the Non-Employee Director Restricted Stock Plan, all of which will vest on the date of the annual meeting of shareholders in 2020. The following table summarizes information about the restricted stock activity under the Non-Employee Director Restricted Stock Plan: Shares Weighted- Average Grant- Date Fair Value per Share Nonvested balance at January 1, 2017 5,576 64.50 Granted 6,454 54.20 Vested (5,576 ) 64.50 Forfeited — — Nonvested balance at December 31, 2017 6,454 54.20 Granted 5,761 60.75 Vested (6,454 ) 54.20 Forfeited — — Nonvested balance at December 31, 2018 5,761 60.75 Granted 4,890 61.34 Vested (5,761 ) 60.75 Forfeited — — Nonvested balance at December 31, 2019 4,890 61.34 The Company recognized compensation expense of $317,000 in 2019, $351,000 in 2018 and $355,000 in 2017 related to the Non-Employee Director Restricted Stock Plan. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 13. Earnings Per Share The Company computes earnings per share (“EPS”) in accordance with FASB Accounting Standards Codification (“ASC”) Topic 260, Earnings Per Share Basic EPS is calculated by dividing net income 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 were exercised or restricted stock becomes vested. The calculation of basic and diluted EPS for the years ended December 31, 2019 , 2018 and 2017 are presented below. For the Year Ended December 31, 2019 2018 2017 (in thousands, except earnings per share amounts) Basic EPS: Net income – basic $ 92,690 $ 71,632 $ 46,231 Basic weighted-average common shares 19,249 19,209 19,165 Basic earnings per share $ 4.82 $ 3.73 $ 2.41 Diluted EPS: Net income - diluted $ 92,690 $ 71,632 $ 46,231 Diluted weighted average common shares: Weighted average common shares 19,249 19,209 19,165 Stock options and restricted stock 80 84 81 Diluted weighted average common shares 19,329 19,293 19,246 Diluted earnings per common share $ 4.80 $ 3.71 $ 2.40 The table below sets forth the reconciliation of the weighted average shares used for the basic and diluted EPS calculation. Years Ended 2019 2018 2017 Basic weighted average common shares 19,248,657 19,208,978 19,165,489 Add: Other common shares eligible for common dividends: Stock options and restricted stock 80,581 84,104 80,377 Diluted weighted average common shares 19,329,238 19,293,082 19,245,866 |
Comprehensive Income and Accumu
Comprehensive Income and Accumulated Other Comprehensive Income | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Comprehensive Income and Accumulated Other Comprehensive Income | 14. Comprehensive income includes net income plus unrealized gains/losses on our available-for-sale investment securities, net of tax. 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, 2019 2018 2017 (in thousands) Balance, beginning of period $ (832 ) $ 3,612 $ (492 ) Impact of adoption of ASU 2016-01 — (615 ) — Impact of adoption of ASU 2018-02 — 414 — Adjusted beginning balance (832 ) 3,411 (492 ) Other comprehensive income (loss) before reclassification 12,379 (4,551 ) 4,823 Amounts reclassified from accumulated other comprehensive income (loss) 664 308 (719 ) Net current period other comprehensive income (loss) 13,043 (4,243 ) 4,104 Balance, end of period $ 12,211 $ (832 ) $ 3,612 The sale or other-than-temporary impairment ( “ OTTI ” ) of an available-for-sale security results in amounts being reclassified from accumulated other comprehensive income to current period net income. The effects of reclassifications out of accumulated other comprehensive income by the respective line items of net income are presented in the following table . Component of Accumulated Other Comprehensive Income (Loss) Year Ended December 31, Affected line item in the statement of income 2019 2018 2017 (in thousands) Unrealized gains (losses) on available-for- sale securities $ (841 ) $ (390 ) $ 1,106 Net realized losses on investments (841 ) (390 ) 1,106 Income before income taxes 177 82 (387 ) Income tax expense $ (664 ) $ (308 ) $ 719 Net income Pre-Tax Amount Tax Expense (Benefit) Net-of-Tax Amount (in thousands) December 31, 2019 Unrealized gain on securities: Unrealized gain on available-for-sale securities $ 15,670 $ 3,291 $ 12,379 Reclassification adjustment for gains realized in net income 841 177 664 Net unrealized gain 16,511 3,468 13,043 Other comprehensive income $ 16,511 $ 3,468 $ 13,043 December 31, 2018 Unrealized loss on securities: Unrealized loss on available-for-sale securities $ (5,760 ) $ (1,209 ) $ (4,551 ) Reclassification adjustment for losses realized in net income 390 82 308 Net unrealized loss (5,370 ) (1,127 ) (4,243 ) Other comprehensive loss $ (5,370 ) $ (1,127 ) $ (4,243 ) December 31, 2017 Unrealized gain on securities: Unrealized gain on available-for-sale securities $ 6,960 $ 2,137 $ 4,823 Reclassification adjustment for gains realized in net income (1,106 ) (387 ) (719 ) Net unrealized gain 5,854 1,750 4,104 Other comprehensive income $ 5,854 $ 1,750 $ 4,104 |
Employee Benefit Plan
Employee Benefit Plan | 12 Months Ended |
Dec. 31, 2019 | |
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 3% 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 $0.7 million in 2019 and 2018, and $0.6 million in 2017. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
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 the fair value of the annuities at December 31, 2019, that the Company has purchased to satisfy its obligations. Life Insurance Company A.M. Best Rating Statement Value of Annuities Exceeding 1% of Statutory Surplus (in thousands) Pacific Life and Annuity Company A+ $ 19,003 American General Life Insurance Company A 14,736 New York Life Insurance Company A++ 9,655 Travelers Life and Annuity Insurance Company A 10,018 Metropolitan Life Insurance Company A+ 6,812 John Hancock Life Insurance Company A+ 6,795 Athene Annuity and Life Company A 4,536 United of Omaha Life Insurance Company A+ 5,268 Lincoln Life Assurance Company of Boston A 3,666 Other 19,848 $ 100,337 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 has operating and finance leases for office space and equipment. Our leases have remaining lease terms of one month to 49 month The components of lease expense were as follows: Year Ended December 31, 2019 (in thousands) Operating lease cost $ 164 Finance lease cost: Amortization of right-of-use assets 62 Interest on lease liabilities 4 Total finance lease cost $ 66 Supplemental cash flow information related to leases was as follows: Year Ended December 31, 2019 (in thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 430 Operating cash flows from finance leases 46 Financing cash flows from finance leases 47 Right-of-use assets obtained in the exchange for the lease obligations were as follows: December 31, 2019 (in thousands) Operating leases $ 369 Finance leases — Supplemental balance sheet information related to leases was as follows: December 31, 2019 Balance Sheet Classification (in thousands) Operating leases: Operating lease right-of-use assets $ 430 Other assets Operating lease liabilities $ 430 Accounts payable and other liabilities Finance leases: Finance lease right-of-use assets $ 185 Finance lease accumulated amortization right-of-use assets (179 ) Property and equipment, net $ 6 Property and equipment, net Finance lease liabilities $ 54 Accounts payable and other liabilities December 31, 2019 Weighted average remaining lease term: Operating leases 3.6 years Finance leases 1.1 years Weighted average discount rate: Operating leases 5.25 % Finance leases 5.21 % The following is a maturity analysis of the annual undiscounted cash flows of the operating and finance lease liabilities as of December 31, 2019: Operating Leases Finance Leases (in thousands) 2020 $ 137 $ 51 2021 120 5 2022 110 — 2023 75 — 2024 6 — Total lease payments 448 56 Less imputed interest 18 2 Total $ 430 $ 54 Rental expense was $0.2 million in 2019 and 2018, and $0.1 million in 2017. |
Concentration of Operations
Concentration of Operations | 12 Months Ended |
Dec. 31, 2019 | |
Concentration Of Operations [Abstract] | |
Concentration of Operations | 17. Concentration of Operations The Company derives its premium revenues from its operations in the workers’ compensation insurance line of business. Net premiums earned during 2019, 2018 and 2017 for the top ten states in 2019 and all others are shown below: 2019 2018 2017 Dollars Percent Dollars Percent Dollars Percent (Dollars in thousands) Florida $ 39,936 12.0 % $ 39,672 11.3 % $ 34,615 10.0 % Georgia 38,090 11.4 % 40,351 11.5 % 40,801 11.8 % Pennsylvania 27,519 8.3 % 31,708 9.1 % 32,931 9.5 % Louisiana 24,782 7.4 % 25,810 7.4 % 25,422 7.3 % North Carolina 18,800 5.7 % 19,537 5.6 % 18,388 5.3 % Illinois 16,929 5.1 % 19,710 5.6 % 22,169 6.4 % Virginia 15,249 4.6 % 15,228 4.3 % 16,298 4.7 % Minnesota 13,399 4.0 % 12,900 3.7 % 13,968 4.0 % Wisconsin 13,388 4.0 % 14,101 4.0 % 13,790 4.0 % South Carolina 13,020 3.9 % 13,924 4.0 % 13,327 3.9 % All others 111,776 33.6 % 117,385 33.5 % 114,447 33.1 % Total net premiums earned $ 332,888 100.0 % $ 350,326 100.0 % $ 346,156 100.0 % |
Fair Values of Financial Instru
Fair Values of Financial Instruments | 12 Months Ended |
Dec. 31, 2019 | |
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 Company’s fixed maturity securities are priced by an independent pricing service. The prices provided by the independent pricing service are estimated based on observable market data in active markets utilizing pricing models and processes, which may include benchmark yields, reported trades, broker/dealer quotes, issuer spreads, benchmark securities, bids, offers, sector groupings, matrix pricing and reference data. The Company reviews the prices provided by pricing services for reasonableness and compares them to prices provided by the Company’s custodian which uses different pricing services. Short Term Investments —The carrying amounts reported in the accompanying consolidated balance sheets for these financial instruments approximate their fair value. The following table summarizes the carrying or reported values and corresponding fair values for financial instruments: December 31, 2019 2018 Carrying Amount Fair Value Carrying Amount Fair Value (in thousands) Assets: Fixed maturity securities—held to maturity $ 599,421 $ 621,343 $ 613,878 $ 616,772 Fixed maturity securities—available-for-sale 441,146 441,146 478,730 478,730 Equity securities 27,903 27,903 18,651 18,651 Short-term investments 56,548 56,548 14,231 14,231 Cash and cash equivalents 43,813 43,813 40,344 40,344 The Company carries available-for-sale securities and equity 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 value 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, 2019. Assets measured at fair value on a recurring basis as of December 31, 2019 and 2018 are as follows: December 31, 2019 Level 1 Inputs Level 2 Inputs Level 3 Inputs Total Fair Value (in thousands) Financial instruments carried at fair value, classified as part of: Securities available-for-sale—fixed maturity: States and political subdivisions $ — $ 237,775 $ — $ 237,775 Corporate bonds — 133,778 — 133,778 U.S. agency-based mortgage-backed securities — 29,467 — 29,467 U.S. Treasury securities 40,126 — — 40,126 Total securities available-for-sale—fixed maturity 40,126 401,020 — 441,146 Equity securities: Domestic common stock 27,903 — — 27,903 Total $ 68,029 $ 401,020 $ — $ 469,049 December 31, 2018 Level 1 Inputs Level 2 Inputs Level 3 Inputs Total Fair Value (in thousands) Financial instruments carried at fair value, classified as part of: Securities available-for-sale—fixed maturity: States and political subdivisions $ — $ 233,245 $ — $ 233,245 Corporate bonds — 173,214 — 173,214 U.S. agency-based mortgage-backed securities — 12,515 — 12,515 U.S. Treasury securities 59,756 — — 59,756 Total securities available-for-sale—fixed maturity 59,756 418,974 — 478,730 Equity securities: Domestic common stock 18,651 — — 18,651 Total $ 78,407 $ 418,974 $ — $ 497,381 Assets measured at amortized cost as of December 31, 2019 and 2018 are as follows: December 31, 2019 Level 1 Inputs Level 2 Inputs Level 3 Inputs Total Fair Value (in thousands) Securities held-to-maturity—fixed maturity: States and political subdivisions $ — $ 485,647 $ — $ 485,647 Corporate bonds — 110,925 — 110,925 U.S. agency-based mortgage-backed securities — 11,511 — 11,511 U.S. Treasury securities 7,873 — — 7,873 Obligations of U.S. government agencies — 5,168 — 5,168 Asset-backed securities — 219 — 219 Total held-to-maturity $ 7,873 $ 613,470 $ — $ 621,343 December 31, 2018 Level 1 Inputs Level 2 Inputs Level 3 Inputs Total Fair Value (in thousands) Securities held-to-maturity—fixed maturity: States and political subdivisions $ — $ 448,947 $ — $ 448,947 Corporate bonds — 91,369 — 91,369 U.S. agency-based mortgage-backed securities — 8,349 — 8,349 U.S. Treasury securities 7,111 — — 7,111 Obligations of U.S. government agencies — 59,932 — 59,932 Asset-backed securities — 1,064 — 1,064 Total held-to-maturity $ 7,111 $ 609,661 $ — $ 616,772 The following table presents summary information regarding changes in the fair value of assets measured at fair value using Level 3 input. Year Ended December 31, 2019 2018 (in thousands) Balance, beginning of period $ — $ 34 Transfer into Level 3 — — Unrealized loss on equity security — (32 ) Sale of equity security — (2 ) Balance, end of period $ — $ — At December 31, 2019 and 2018, the Company did not hold any securities measured at fair value on a nonrecurring basis due to impairment. |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 and 2018. Three Months Ended March 31 June 30 September 30 December 31 (in thousands, except per share amounts) 2019 Net premiums earned $ 84,948 $ 82,951 $ 82,712 $ 82,277 Net investment income 8,015 8,169 8,264 8,035 Net realized gains (losses) on investments 59 (82 ) (4 ) (53 ) Total revenues 95,190 91,753 91,488 91,939 Income before income taxes 23,809 22,169 26,613 42,926 Net income 19,400 17,890 21,386 34,014 Earnings per share: Basic $ 1.01 $ 0.93 $ 1.11 $ 1.77 Diluted $ 1.01 $ 0.93 $ 1.11 $ 1.76 Comprehensive income 25,193 23,068 23,862 33,610 Extraordinary cash dividends declared per common share $ — $ — $ — $ 3.50 Cash dividends declared per common share $ 0.25 $ 0.25 $ 0.25 $ 0.25 2018 Net premiums earned $ 87,310 $ 88,995 $ 85,184 $ 88,837 Net investment income 7,209 7,303 7,884 8,056 Net realized losses on investments (31 ) (1,111 ) (329 ) (65 ) Total revenues 94,175 95,380 93,529 94,669 Income before income taxes 19,414 20,930 24,460 22,777 Net income 16,169 16,956 19,701 18,806 Earnings per share: Basic $ 0.84 $ 0.88 $ 1.03 $ 0.98 Diluted $ 0.84 $ 0.88 $ 1.02 $ 0.98 Comprehensive income 10,321 17,109 17,582 22,176 Extraordinary cash dividends declared per common share $ — $ — $ — $ 3.50 Cash dividends declared per common share $ 0.22 $ 0.22 $ 0.22 $ 0.22 |
Capital Management
Capital Management | 12 Months Ended |
Dec. 31, 2019 | |
Text Block [Abstract] | |
Capital Management | 20. Capital Management The Company’s Board of Directors initiated a share repurchase program in February 2010. In October 2016, the Board reauthorized this program with a limit of $25.0 million with no expiration date. There were no shares repurchased under this program in 2019. Since the 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 regular quarterly dividend. During 2019, the Company’s Board of Directors declared a quarterly dividend of $0.25 per share compared to $0.22 per share in 2018, $0.20 per share in 2017, $0.18 per share in 2016, and $0.15 per share in 2015. The Company declared extraordinary dividends totaling $3.50 per share in 2019, 2018 and 2017, $3.25 per share in 2016, and $3.00 per share in 2015. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | 21. Subsequent Events On February 18, 2020 the Company declared a regular quarterly cash dividend of $0.27 per share payable on March 27, 2020 to shareholders of record as of March 13, 2020. The Board considers the payment of a regular cash dividend each calendar quarter. |
Schedule II. Condensed Financia
Schedule II. Condensed Financial Information of Registrant | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 2018 (in thousands) Assets: Investments: Fixed maturity securities—available-for-sale, at fair value (amortized cost $7,210 and $0, in 2019 and 2018, respectively) $ 7,216 $ — Equity securities, at fair value (cost $10,007 in 2019 and 2018) 11,779 9,803 Short-term investments 17,967 — Investment in subsidiaries 379,001 388,797 Total investments 415,963 398,600 Cash and cash equivalents 10,551 5,509 Deferred income taxes — 509 Notes receivable from subsidiaries 2,781 3,270 Property and equipment, net 1,720 1,536 Federal income tax recoverable 2,798 2,995 Other assets 804 800 Total assets $ 434,617 $ 413,219 Liabilities and shareholders’ equity Liabilities: Accounts payable and other liabilities 4,230 3,457 Deferred income taxes 172 — Total liabilities 4,402 3,457 Shareholders' equity (net of Treasury stock of $22,370 at December 31, 2019 and 2018) 430,215 409,762 Total liabilities and shareholders' equity $ 434,617 $ 413,219 Schedule II. Condensed Financial Information of Registrant – (Continued) AMERISAFE, INC. CONDENSED STATEMENTS OF INCOME Year Ended December 31, 2019 2018 2017 (in thousands) Revenues Net investment income $ 915 $ 1,089 $ 679 Net unrealized gains (losses) on equity securities 1,977 (948 ) — Fee and other income 5,352 7,389 6,890 Total revenues 8,244 7,530 7,569 Expenses Other operating costs 8,244 7,530 7,569 Total expenses 8,244 7,530 7,569 Income (loss) before income taxes and equity in earnings of subsidiaries — — — Income tax expense (benefit) 376 (36 ) 125 Gain (loss) before equity in earnings of subsidiaries (376 ) 36 (125 ) Equity in net income of subsidiaries 93,066 71,596 46,356 Net income $ 92,690 $ 71,632 $ 46,231 Schedule II. Condensed Financial Information of Registrant – (Continued) AMERISAFE, INC. CONDENSED STATEMENTS OF CASH FLOWS Year Ended December 31, 2019 2018 2017 (in thousands) Operating activities Net cash provided by operating activities $ 2,333 $ 2,448 $ 15,138 Investing activities Purchases of investments (27,140 ) (47,825 ) (37,361 ) Proceeds from sales of investments 1,987 54,600 33,000 Purchases of property and equipment (995 ) (1,041 ) (277 ) Dividends from subsidiary 115,900 65,400 78,900 Net cash provided by investing activities 89,752 71,134 74,262 Financing activities Proceeds from stock option exercises 20 67 — Finance lease purchases (47 ) — — Dividends to shareholders (87,016 ) (84,491 ) (82,645 ) Net cash used in financing activities (87,043 ) (84,424 ) (82,645 ) Change in cash and cash equivalents 5,042 (10,842 ) 6,755 Cash and cash equivalents at beginning of year 5,509 16,351 9,596 Cash and cash equivalents at end of year $ 10,551 $ 5,509 $ 16,351 |
Schedule VI. Supplemental Infor
Schedule VI. Supplemental Information Concerning Property-Casualty Insurance Operations | 12 Months Ended |
Dec. 31, 2019 | |
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 Policy Acquisition Costs Reserves for Unpaid Loss and Loss Adjustment Expense Unearned Premium Net Premiums Earned Net Investment Income Loss and LAE Related to Current Period Loss and LAE Related to Prior Periods Amortization of Deferred Policy Acquisition Costs Paid Claims and Claim Adjustment Expenses Net Premiums Written (in thousands) 2019 $ 19,048 $ 772,887 $ 140,873 $ 332,888 $ 32,483 $ 241,344 $ (65,002 ) $ (44,558 ) $ 189,991 $ 324,465 2018 19,734 798,409 149,296 350,326 30,452 250,487 (45,596 ) (45,769 ) 200,654 342,352 2017 20,251 771,845 157,270 346,156 29,281 244,094 (34,770 ) (43,009 ) 186,888 341,398 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
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. 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 currently 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 Company and its consolidated subsidiaries. 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 small to mid-sized employers engaged in hazardous industries, principally construction, trucking, logging and lumber, manufacturing, agriculture, maritime, and oil and gas. Assets and revenues of AIIC and its subsidiaries represent at least 95% of comparable consolidated amounts of the Company for each of 2019, 2018 and 2017. |
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, or 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. |
Adopted Accounting Guidance | Adopted Accounting Guidance In January 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. This guidance requires fair value measurement for equity investments (not including those that result in consolidation of the investee or use the equity method of accounting) and the recognition of changes in fair value to be presented as a component of net income. The guidance also revises the disclosure requirements related to fair value changes of liabilities presented in comprehensive income, eliminates disclosure related to the methods and assumptions underlying fair value for financial instruments measured at amortized cost, and simplifies impairment assessments for equity investments without readily determinable fair values. The adoption of this new guidance in the first quarter of 2018 resulted in an immaterial decrease in net income of $390 thousand or a $0.02 decrease to our diluted earnings per common share. At December 31, 2017, equity investments were classified as available-for-sale on the Company’s balance sheet. However, upon adoption, the updated guidance eliminated the available-for-sale balance sheet classification for equity investments. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). The new guidance requires a lessee to recognize a lease liability and a right of use asset for all leases extending beyond twelve months. This standard was effective for us beginning in the first quarter of 2019. We elected the new transition method under the transition guidance within the new standard. Therefore, prior comparative periods were not adjusted. We also elected the package of practical expedients, which among other things, allows us to carryforward the historical lease classification. We made an accounting policy election not to recognize lease assets and lease liabilities for short-term operating leases. Adoption of the new guidance resulted in the Company recognizing right-of-use assets of $0.4 million and lease liabilities of $0.3 million. The cumulative effect adjustment to the opening balance of retained earnings was minimal. Adoption of this new guidance did not have a material effect on the Company’s consolidated financial statements as the Company does not have any significant leases. |
Prospective Accounting Guidance | Prospective Accounting Guidance In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses. The current guidance delays the recognition of credit losses until a probable loss has occurred. The new guidance requires credit losses for securities measured at amortized cost to be determined using current expected credit loss estimates. These estimates are to be derived from historical, current and reasonable supporting forecasts, including prepayments and estimates, and will be recorded through a valuation account. The same method will be used for available-for-sale securities, but the valuation account will be limited to the amount by which the fair value is below amortized cost. The standard is effective for us in the first quarter of 2020. Implementation of the new guidance requires a modified retrospective approach without restatement, which means the first cumulative adjustment required will be a charge to retained earnings of $593 thousand, with subsequent changes in the valuation account reported in the income statement. The financial statement impact is determined by the nature of the portfolio held and the economic conditions at the time of implementation. In establishing a current expected credit allowance for held-to-maturity fixed income securities under the new accounting standard, the Company will use a probability of default and loss given default methodology based on the securities credit rating and maturity date of the specific security. The amount is currently estimated to be $308 thousand. This estimate is based on the Company’s portfolio of held-to-maturity fixed income securities, the credit ratings and maturity dates of those securities, at December 31, 2019. In establishing a current expected credit allowance for reinsurance recoverables under the new accounting standard, the Company will use a probability of default and loss given default methodology based on the credit ratings of our reinsurers. The amount is currently estimated to be $443 thousand. This estimate is based on the amount of reinsurance recoverables and the ratings of our reinsurers at December 31, 2019. The Company’s internal working group has evaluated the remainder of the balance sheet assets, including available-for-sale securities and net premiums receivable, and determined the implementation of the new credit loss guidance in relation to those assets will have an immaterial impact on the financial statements. All other issued but not yet effective accounting and reporting standards as of December 31, 2019 are either not applicable to the Company or are not expected to have a material impact on the Company. |
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. 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. Changes in the fair value of equity securities are recorded in net income. 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. 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 with an original maturity of 90 days or less. |
Short-Term Investments | Short-Term Investments Short-term investments include municipal securities and corporate bonds with an original maturity greater than 90 days but less than one year. |
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 2019, 2018 or 2017. |
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. In establishing our reserves for loss and loss adjustment expenses, we review the results of analyses using individual case-base valuations and statistical and actuarial methods that utilize historical loss data from our more than 34 years of underwriting workers’ compensation insurance. The actuarial analysis of our historical data provides the factors we use in estimating our loss reserves. These factors are primarily measures over time of the number of claims paid and reported, average paid and incurred claim amounts, claim closure rates and claim payment patterns. In evaluating the results of our analyses, management also uses substantial judgment in considering other factors that are not considered in these actuarial analyses, including changes in business mix, claims management, regulatory issues, medical trends, employment and wage patterns, insurance policy coverage interpretations, judicial determinations and other subjective factors. Due to the inherent uncertainty associated with these estimates, and the cost of incurred but unreported claims, our actual liabilities may vary significantly from our original estimates. 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 such adjustments are included in income from 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 economic conditions, 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 income from current operations. Experience-rated commissions had no impact on underwriting and certain other operating costs in 2019 and increased underwriting and certain other operating costs by $0.2 million in 2018 and 2017. In December 2019, the Company commuted reinsurance agreements with Hannover Reinsurance (Ireland) Limited (“Hannover”) covering portions of accident years 2009 through 2011. The Company received an $8.5 million payment effectuated solely through offset against the balance of the funds withheld and recoverable from reinsurers accounts under the reinsurance agreements in exchange for releasing Hannover from their reinsurance obligations under the commuted agreements. Hannover remains obligated to the subsidiaries of the Company under other reinsurance agreements. There was no effect on the Company’s net income in the year ended December 31, 2019 as a result of the commutation. |
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 $0.4 million in 2019 and $0.5 million in 2018 and 2017. |
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. 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. 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. |
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. |
Fair Values of Financial Instruments | The Company carries available-for-sale securities and equity 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, 2019 | |
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, 2019 are summarized as follows: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (in thousands) States and political subdivisions $ 466,270 $ 19,570 $ (193 ) $ 485,647 Corporate bonds 109,241 1,684 — 110,925 U.S. agency-based mortgage-backed securities 10,967 544 — 11,511 U.S. Treasury securities and obligations of U.S. government agencies 12,723 330 (12 ) 13,041 Asset-backed securities 220 — (1 ) 219 Totals $ 599,421 $ 22,128 $ (206 ) $ 621,343 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, 2018 are summarized as follows: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (in thousands) States and political subdivisions $ 445,922 $ 5,109 $ (2,084 ) $ 448,947 Corporate bonds 91,762 62 (455 ) 91,369 U.S. agency-based mortgage-backed securities 8,102 327 (80 ) 8,349 U.S. Treasury securities and obligations of U.S. government agencies 67,042 340 (339 ) 67,043 Asset-backed securities 1,050 22 (8 ) 1,064 Totals $ 613,878 $ 5,860 $ (2,966 ) $ 616,772 |
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 amortized cost and fair value of, those investments classified as available-for-sale at December 31, 2019 are summarized as follows: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (in thousands) States and political subdivisions $ 225,895 $ 11,906 $ (26 ) $ 237,775 Corporate bonds 130,453 3,326 (1 ) 133,778 U.S. agency-based mortgage-backed securities 29,499 64 (96 ) 29,467 U.S. Treasury securities and obligations of U.S. government agencies 39,851 317 (42 ) 40,126 Totals $ 425,698 $ 15,613 $ (165 ) $ 441,146 The gross unrealized gains and losses on, and the amortized cost and fair value of, those investments classified as available-for-sale at December 31, 2018 are summarized as follows: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (in thousands) States and political subdivisions $ 231,848 $ 3,515 $ (2,118 ) $ 233,245 Corporate bonds 173,904 243 (933 ) 173,214 U.S. agency-based mortgage-backed securities 12,835 — (320 ) 12,515 U.S. Treasury securities and obligations of U.S. government agencies 61,185 — (1,429 ) 59,756 Totals $ 479,772 $ 3,758 $ (4,800 ) $ 478,730 |
Gross Unrealized Gains and Losses and Cost of Equity | The gross unrealized gains and losses on, and the cost of equity securities at December 31, 2019 are summarized as follows: Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (in thousands) Equity securities: Domestic common stock $ 24,457 $ 3,446 $ — $ 27,903 Total equity securities $ 24,457 $ 3,446 $ — $ 27,903 The gross unrealized gains and losses on, and the cost of equity securities at December 31, 2018 are summarized as follows: Cost Gross Gains Gross Losses Fair Value (in thousands) Equity securities: Domestic common stock $ 19,962 $ 30 $ (1,341 ) $ 18,651 Total equity securities $ 19,962 $ 30 $ (1,341 ) $ 18,651 |
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 2019, 2018 and 2017 is as follows: Fixed Maturity Securities Available for Sale Equity Securities Other Total (in thousands) Year ended December 31, 2019 Proceeds from sales $ 33,113 $ — $ 21,977 $ 55,090 Gross realized investment gains $ 140 $ — $ 36 $ 176 Gross realized investment losses (68 ) — — (68 ) Net realized investment gains 72 — 36 108 Other, including gains (losses) on calls and redemptions (196 ) — 8 (188 ) Net realized gains (losses) on investments $ (124 ) $ — $ 44 $ (80 ) Year ended December 31, 2018 Proceeds from sales $ 15,025 $ 3 $ — $ 15,028 Gross realized investment gains $ 238 $ 1 $ — $ 239 Gross realized investment losses (1,354 ) — — (1,354 ) Net realized investment gains (losses) (1,116 ) 1 — (1,115 ) Other, including losses on calls and redemptions (144 ) — (277 ) (421 ) Net realized gains (losses) on investments $ (1,260 ) $ 1 $ (277 ) $ (1,536 ) Year ended December 31, 2017 Proceeds from sales $ 14,591 $ 1 $ 13,172 $ 27,764 Gross realized investment gains $ 485 $ 1 $ — $ 486 Gross realized investment losses (5 ) — — (5 ) Net realized investment gains 480 1 — 481 Other, including losses on calls and redemptions (520 ) — (608 ) (1,128 ) Net realized gains (losses) on investments $ (40 ) $ 1 $ (608 ) $ (647 ) |
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, 2019 2018 2017 (in thousands) Gross investment income: Fixed maturity securities $ 30,343 $ 28,762 $ 28,961 Equity securities 628 448 201 Short-term investments and cash and cash equivalents 2,478 2,208 1,117 Other investments — — 104 Total gross investment income 33,449 31,418 30,383 Investment expenses (966 ) (966 ) (1,102 ) Net investment income $ 32,483 $ 30,452 $ 29,281 |
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 Investments with Unrealized Losses Gross Unrealized Losses Fair Value of Investments with Unrealized Losses Gross Unrealized Losses Fair Value of Investments with Unrealized Losses Gross Unrealized Losses (in thousands) December 31, 2019 Held-to-Maturity Fixed maturity securities: States and political subdivisions $ 21,074 $ 193 $ — $ — $ 21,074 $ 193 U.S. Treasury securities and obligations of U.S. government agencies — — 3,243 12 3,243 12 Asset-backed securities — — 68 1 68 1 Total held-to-maturity securities 21,074 193 3,311 13 24,385 206 Available-for-Sale Fixed maturity securities: States and political subdivisions $ 4,140 $ 26 $ — $ — $ 4,140 $ 26 Corporate bonds 6,426 1 — — 6,426 1 U.S. agency-based mortgage-backed securities 13,007 95 1,152 1 14,159 96 U.S. Treasury securities and obligations of U.S. government agencies — — 17,068 42 17,068 42 Total available-for-sale securities 23,573 122 18,220 43 41,793 165 Total $ 44,647 $ 315 $ 21,531 $ 56 $ 66,178 $ 371 December 31, 2018 Held-to-Maturity Fixed maturity securities: States and political subdivisions $ 28,369 $ 59 $ 180,550 $ 2,025 $ 208,919 $ 2,084 Corporate bonds 17,448 36 48,315 419 65,763 455 U.S. agency-based mortgage-backed securities — — 2,287 80 2,287 80 U.S. Treasury securities and obligations of U.S. government agencies 2,865 4 46,486 335 49,351 339 Asset-backed securities — — 525 8 525 8 Total held-to-maturity securities 48,682 99 278,163 2,867 326,845 2,966 Available-for-Sale Fixed maturity securities: States and political subdivisions $ 16,109 $ 81 $ 76,255 $ 2,037 $ 92,364 $ 2,118 Corporate bonds 59,099 279 70,306 654 129,405 933 U.S. agency-based mortgage-backed securities — — 12,515 320 12,515 320 U.S. Treasury securities and obligations of U.S. government agencies — — 59,756 1,429 59,756 1,429 Total available-for-sale securities 75,208 360 218,832 4,440 294,040 4,800 Equity securities: Domestic common stock $ 18,651 $ 1,341 $ — $ — $ 18,651 $ 1,341 Total equity securities 18,651 1,341 — — 18,651 1,341 Total $ 142,541 $ 1,800 $ 496,995 $ 7,307 $ 639,536 $ 9,107 |
Held-to-Maturity Securities [Member] | |
Summary of 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 by contractual maturity is as follows: December 31, 2019 December 31, 2018 Amortized Cost Fair Value Amortized Cost Fair Value (in thousands) Maturity: Within one year $ 49,967 $ 50,348 $ 76,875 $ 76,861 After one year through five years 198,025 202,109 256,614 257,530 After five years through ten years 110,460 113,877 81,311 81,755 After ten years 229,782 243,279 189,926 191,213 U.S. agency-based mortgage-backed securities 10,967 11,511 8,102 8,349 Asset-backed securities 220 219 1,050 1,064 Totals $ 599,421 $ 621,343 $ 613,878 $ 616,772 |
Available-for-Sale Securities [Member] | |
Summary of 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 by contractual maturity is as follows: December 31, 2019 December 31, 2018 Amortized Cost Fair Value Amortized Cost Fair Value (in thousands) Maturity: Within one year $ 27,160 $ 27,194 $ 61,650 $ 61,435 After one year through five years 144,142 146,469 175,743 174,213 After five years through ten years 47,175 49,419 47,058 46,725 After ten years 177,722 188,597 182,486 183,842 U.S. agency-based mortgage-backed securities 29,499 29,467 12,835 12,515 Totals $ 425,698 $ 441,146 $ 479,772 $ 478,730 |
Premiums Receivable (Tables)
Premiums Receivable (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Insurance [Abstract] | |
Components of Premiums Receivable | The components of premiums receivable are shown below: December 31, 2019 2018 (in thousands) Premiums receivable $ 163,065 $ 167,868 Allowance for doubtful accounts (5,112 ) (5,390 ) Premiums receivable, net $ 157,953 $ 162,478 |
Summary of Activity in Allowance for Doubtful Accounts | The following summarizes the activity in the allowance for doubtful accounts: December 31, 2019 2018 (in thousands) Balance, beginning of year $ 5,390 $ 5,226 Provision for bad debts 723 883 Write-offs (1,001 ) (719 ) Balance, end of year $ 5,112 $ 5,390 |
Deferred Policy Acquisition C_2
Deferred Policy Acquisition Costs (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 2018 (in thousands) Agents’ commissions $ 14,290 $ 14,953 Premium taxes 2,960 3,161 Deferred underwriting expenses 1,798 1,620 Total deferred policy acquisition costs $ 19,048 $ 19,734 |
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, 2019 2018 2017 (in thousands) Balance, beginning of year $ 19,734 $ 20,251 $ 19,300 Policy acquisition costs deferred 43,872 45,252 43,960 Amortization expense during the year (44,558 ) (45,769 ) (43,009 ) Balance, end of year $ 19,048 $ 19,734 $ 20,251 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property Plant And Equipment [Abstract] | |
Schedule of Property and Equipment | Property and equipment consist of the following: December 31, 2019 2018 (in thousands) Land and office building $ 7,819 $ 7,798 Furniture and equipment 6,097 6,150 Software 7,366 7,339 Automobiles 74 74 Finance lease right-of-use assets 185 — 21,541 21,361 Accumulated depreciation and amortization (15,210 ) (15,103 ) Property and equipment, net $ 6,331 $ 6,258 |
Reinsurance (Tables)
Reinsurance (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Insurance [Abstract] | |
Schedule of the Effect of Reinsurance on Premiums Written and Earned | The effect of reinsurance on premiums written and earned in 2019, 2018 and 2017 was as follows: 2019 Premiums 2018 Premiums 2017 Premiums Written Earned Written Earned Written Earned (in thousands) Gross $ 333,460 $ 341,883 $ 351,696 $ 359,670 $ 350,267 $ 355,025 Ceded (8,995 ) (8,995 ) (9,344 ) (9,344 ) (8,869 ) (8,869 ) Net premiums $ 324,465 $ 332,888 $ 342,352 $ 350,326 $ 341,398 $ 346,156 |
Schedule of the Amounts Recoverable from Reinsurers | The amounts recoverable from reinsurers consist of the following: December 31, 2019 2018 (in thousands) Unpaid losses recoverable: Case basis $ 82,252 $ 76,525 Incurred but not reported 13,090 30,691 Paid losses recoverable 571 325 Experience-rated commissions recoverable — 4,465 Total $ 95,913 $ 112,006 |
Schedule of Unsecured Reinsurance Recoverables from Reinsurers | Reinsurer A.M. Best Rating Amounts Recoverable as of December 31, 2019 (in thousands) Hannover Reinsurance (Ireland) Limited (1) A+ $ 43,543 Allianz Risk Transfer AG (Bermuda) A+ 11,484 Odyssey America Reinsurance Corporation A 11,273 Minnesota Workers' Compensation Reinsurance Association (1) NR 6,293 Other reinsurers 23,320 Total amounts recoverable from reinsurers 95,913 Funds withheld and letters of credit related to the above recoverables (58,246 ) Total unsecured amounts recoverable from reinsurers $ 37,667 (1) Current participant in our 2020 reinsurance program. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 2018 (in thousands) Deferred income tax assets: Discounting of net unpaid loss and loss adjustment expenses $ 19,985 $ 21,377 Unearned premiums 7,638 8,069 Accrued expenses and other 2,612 2,636 State income tax 2,484 855 Accrued policyholder dividends 2,330 2,188 Impaired securities — 21 Capital loss carryforward 20 — Accrued insurance-related assessments 2,672 3,139 Net unrealized loss on securities — 496 Total deferred tax assets 37,741 38,781 Less: Valuation allowance (2,025 ) — Net deferred tax assets 35,716 38,781 Deferred income tax liabilities: Deferred policy acquisition costs (4,838 ) (5,207 ) Callable bond amortization (2 ) (5 ) Unrealized gain on securities available-for-sale (3,970 ) — Property and equipment and other (271 ) (178 ) Salvage and subrogation (636 ) (719 ) Loss reserves adjustment due to the Tax Act (8,486 ) (10,820 ) Total deferred income tax liabilities (18,203 ) (16,929 ) Net deferred income taxes $ 17,513 $ 21,852 |
Components of Consolidated Income Tax Expense (Benefit) | The components of consolidated income tax expense (benefit) are as follows: Year Ended December 31, 2019 2018 2017 (in thousands) Current: Federal $ 20,658 $ 16,407 $ 22,477 State 1,297 1,004 732 21,955 17,411 23,209 Deferred: Federal 732 (1,389 ) 12,965 State 140 (73 ) (165 ) 872 (1,462 ) 12,800 Total $ 22,827 $ 15,949 $ 36,009 |
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 21% in 2019 and 2018, and 35% in 2017 to income before income taxes as follows: Year Ended December 31, 2019 2018 2017 (in thousands) Income tax computed at federal statutory tax rate $ 24,258 $ 18,392 $ 28,784 Tax-exempt interest, net (2,999 ) (2,965 ) (5,707 ) State income tax 1,178 720 311 Dividends received deduction (59 ) (44 ) (48 ) Revaluation of net deferred income tax assets — — 12,620 Other 449 (154 ) 49 $ 22,827 $ 15,949 $ 36,009 |
Loss and Loss Adjustment Expe_2
Loss and Loss Adjustment Expenses (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Insurance [Abstract] | |
Summary of Development Tables of Incurred and Paid Losses and Allocated Loss Adjustment Expenses Net of Reinsurance | Incurred Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance As of For the Years Ended December 31, December 31, 2019 (Dollars in thousands) Total IBNR Plus Expected Cumulative Development Number of Accident Unaudited (1) on Reported Claims Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Claims Reported 2010 $ 179,156 $ 202,479 $ 208,035 $ 205,769 $ 198,861 $ 193,029 $ 191,000 $ 189,403 $ 189,040 $ 188,096 $ 5,093 5,971 2011 — 196,384 199,522 199,163 198,213 195,262 192,988 191,126 189,327 188,226 6,008 6,044 2012 — — 222,549 222,075 212,738 193,515 184,460 182,859 180,387 178,586 6,834 5,749 2013 — — — 241,810 241,811 233,656 220,457 214,701 210,588 209,184 8,803 5,766 2014 — — — — 268,846 268,846 249,097 235,058 226,933 218,386 6,534 5,838 2015 — — — — — 262,573 262,573 252,514 235,471 220,965 12,488 5,515 2016 — — — — — — 250,491 250,491 241,406 218,005 11,377 5,390 2017 — — — — — — — 244,094 244,098 234,587 14,636 5,199 2018 — — — — — — — — 250,487 250,487 13,900 5,451 2019 — — — — — — — — — 241,344 18,973 4,959 Total $ 2,147,866 $ 104,646 Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, (Dollars in thousands) Accident Unaudited (1) Claim Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Frequency (2) 2010 $ 47,520 $ 108,714 $ 141,029 $ 156,974 $ 165,834 $ 169,565 $ 172,426 $ 175,019 $ 176,663 $ 177,331 24.94 2011 — 53,329 111,029 140,831 153,968 161,639 165,967 167,757 169,994 170,785 22.82 2012 — — 50,579 107,467 133,658 149,161 154,553 157,207 159,807 161,014 18.73 2013 — — — 51,396 119,507 150,304 165,994 172,479 177,724 180,614 16.55 2014 — — — — 53,060 119,820 153,320 169,736 180,683 186,129 14.99 2015 — — — — — 54,141 121,599 151,818 170,461 182,053 14.25 2016 — — — — — — 52,238 115,713 143,016 156,861 14.22 2017 — — — — — — — 56,951 122,552 151,427 14.64 2018 — — — — — — — — 62,061 126,057 15.16 2019 — — — — — — — — — 58,883 14.50 Total 1,551,154 All outstanding liabilities before 2010, net of reinsurance 80,832 Liabilities for loss and loss adjustment expenses, net of reinsurance 677,544 (1) Data presented for these calendar years is required supplementary information, which is unaudited. (2) Frequency, as calculated above, refers to reported claims divided by gross premium earned. |
Summary of Average Annual Percentage Payout of Incurred Losses by Age Net of Reinsurance for Worker's Compensation and General Liability | The average annual percentage payout of incurred losses by age, net of reinsurance, for workers’ compensation and general liability as of December 31, 2019 is summarized below. Since workers’ compensation has long payout periods, the table below shows less than 100% in the years disclosed. This is required supplementary information, which is unaudited. Average Annual Percentage Payout of Incurred Losses by Age, Net of Reinsurance (Unaudited) Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 25.3% 30.1% 14.5% 7.7% 4.2% 2.2% 1.3% 1.1% 0.6% 0.4% |
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 2019, 2018 and 2017: Year Ended December 31, 2019 2018 2017 (in thousands) Balance, beginning of period $ 798,409 $ 771,845 $ 742,776 Less amounts recoverable from reinsurers on unpaid loss and loss adjustment expenses 107,216 84,889 78,256 Net balance, beginning of period 691,193 686,956 664,520 Add incurred related to: Current accident year 241,344 250,487 244,094 Prior accident years (65,002 ) (45,596 ) (34,770 ) Total incurred 176,342 204,891 209,324 Less paid related to: Current accident year 58,883 62,061 56,951 Prior accident years 131,108 138,593 129,937 Total paid 189,991 200,654 186,888 Net balance, end of period 677,544 691,193 686,956 Add amounts recoverable from reinsurers on unpaid loss and loss adjustment expenses 95,343 107,216 84,889 Balance, end of period $ 772,887 $ 798,409 $ 771,845 |
Summary Exposures to Various Asbestos Related Claims | The following table details our exposures to various asbestos related claims: Year Ended December 31, 2019 2018 2017 (in thousands) Reserves for loss and LAE at beginning of year $ 1,555 $ 1,748 $ 1,487 Incurred losses and LAE during the current year (183 ) 108 556 Loss and LAE payments (49 ) (301 ) (295 ) Reserves for loss and LAE at end of year $ 1,323 $ 1,555 $ 1,748 |
Statutory Accounting and Regu_2
Statutory Accounting and Regulatory Requirements (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Insurance [Abstract] | |
Insurance Subsidiaries | Statutory-basis shareholders’ capital and surplus at December 31, 2019, 2018 and 2017 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, 2019, were as follows: 2019 2018 2017 (in thousands) Capital and surplus $ 359,952 $ 383,575 $ 382,062 Net income 92,301 72,979 61,628 Net realized losses on investments (80 ) (1,536 ) (647 ) |
Stock Options and Restricted _2
Stock Options and Restricted Stock (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock Option Activity | The following table summarizes information about the stock option activity under the 2005 Incentive Plan: Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Life (in years) Outstanding at January 1, 2017 20,000 8.71 3.1 Granted — — — Exercised — — — Canceled, forfeited, or expired — — — Outstanding at December 31, 2017 20,000 5.21 2.1 Exercisable at December 31, 2017 20,000 5.21 2.1 Outstanding at January 1, 2018 20,000 5.21 2.1 Granted — — — Exercised (15,000 ) 4.46 0.9 Canceled, forfeited, or expired — — — Outstanding at December 31, 2018 5,000 3.95 1.9 Exercisable at December 31, 2018 5,000 3.95 1.9 Outstanding at January 1, 2019 5,000 3.95 1.9 Granted — — — Exercised (5,000 ) 3.95 0.9 Canceled, forfeited, or expired — — — Outstanding at December 31, 2019 — — — Exercisable at December 31, 2019 — — — |
Weighted Average Grant Date Fair Values of Options Granted | 2019 2018 2017 (in thousands) Cash received from option exercises $ 20 $ 67 $ — Total intrinsic value of options exercised 287 766 — Aggregate intrinsic value of vested options outstanding — 264 1,128 |
Restricted Stock Activity | The following table summarizes information about the restricted stock activity under the 2005 Incentive Plan: Shares Weighted- Average Grant- Date Fair Value per Share Nonvested balance at January 1, 2017 800 27.35 Granted — — Vested (800 ) 27.35 Forfeited — — Nonvested balance at December 31, 2017 — — Granted — — Vested — — Forfeited — — Nonvested balance at December 31, 2018 — — Granted — — Vested — — Forfeited — — Nonvested balance at December 31, 2019 — — The following table summarizes information about the common and restricted stock activity under the 2012 Incentive Plan: Shares Weighted- AverageGrant- Date Fair Value per Share Nonvested balance at January 1, 2017 76,392 43.91 Granted 9,326 55.58 Vested (24,839 ) 43.89 Forfeited — — Nonvested balance at December 31, 2017 60,879 45.71 Granted 3,304 59.16 Vested (24,608 ) 44.31 Forfeited — — Nonvested balance at December 31, 2018 39,575 48.93 Granted 22,713 61.08 Vested (29,760 ) 51.86 Forfeited — — Nonvested balance at December 31, 2019 32,528 54.02 The following table summarizes information about the restricted stock activity under the Non-Employee Director Restricted Stock Plan: Shares Weighted- Average Grant- Date Fair Value per Share Nonvested balance at January 1, 2017 5,576 64.50 Granted 6,454 54.20 Vested (5,576 ) 64.50 Forfeited — — Nonvested balance at December 31, 2017 6,454 54.20 Granted 5,761 60.75 Vested (6,454 ) 54.20 Forfeited — — Nonvested balance at December 31, 2018 5,761 60.75 Granted 4,890 61.34 Vested (5,761 ) 60.75 Forfeited — — Nonvested balance at December 31, 2019 4,890 61.34 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 , 2018 and 2017 are presented below. For the Year Ended December 31, 2019 2018 2017 (in thousands, except earnings per share amounts) Basic EPS: Net income – basic $ 92,690 $ 71,632 $ 46,231 Basic weighted-average common shares 19,249 19,209 19,165 Basic earnings per share $ 4.82 $ 3.73 $ 2.41 Diluted EPS: Net income - diluted $ 92,690 $ 71,632 $ 46,231 Diluted weighted average common shares: Weighted average common shares 19,249 19,209 19,165 Stock options and restricted stock 80 84 81 Diluted weighted average common shares 19,329 19,293 19,246 Diluted earnings per common share $ 4.80 $ 3.71 $ 2.40 |
Reconciliation of Weighted Average Shares used for Basic and Diluted Earnings Per Share Calculation | The table below sets forth the reconciliation of the weighted average shares used for the basic and diluted EPS calculation. Years Ended 2019 2018 2017 Basic weighted average common shares 19,248,657 19,208,978 19,165,489 Add: Other common shares eligible for common dividends: Stock options and restricted stock 80,581 84,104 80,377 Diluted weighted average common shares 19,329,238 19,293,082 19,245,866 |
Comprehensive Income and Accu_2
Comprehensive Income and Accumulated Other Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 2018 2017 (in thousands) Balance, beginning of period $ (832 ) $ 3,612 $ (492 ) Impact of adoption of ASU 2016-01 — (615 ) — Impact of adoption of ASU 2018-02 — 414 — Adjusted beginning balance (832 ) 3,411 (492 ) Other comprehensive income (loss) before reclassification 12,379 (4,551 ) 4,823 Amounts reclassified from accumulated other comprehensive income (loss) 664 308 (719 ) Net current period other comprehensive income (loss) 13,043 (4,243 ) 4,104 Balance, end of period $ 12,211 $ (832 ) $ 3,612 |
Reclassification Out of Accumulated Other Comprehensive Income | The effects of reclassifications out of accumulated other comprehensive income by the respective line items of net income are presented in the following table . Component of Accumulated Other Comprehensive Income (Loss) Year Ended December 31, Affected line item in the statement of income 2019 2018 2017 (in thousands) Unrealized gains (losses) on available-for- sale securities $ (841 ) $ (390 ) $ 1,106 Net realized losses on investments (841 ) (390 ) 1,106 Income before income taxes 177 82 (387 ) Income tax expense $ (664 ) $ (308 ) $ 719 Net income |
Other Comprehensive Income | Pre-Tax Amount Tax Expense (Benefit) Net-of-Tax Amount (in thousands) December 31, 2019 Unrealized gain on securities: Unrealized gain on available-for-sale securities $ 15,670 $ 3,291 $ 12,379 Reclassification adjustment for gains realized in net income 841 177 664 Net unrealized gain 16,511 3,468 13,043 Other comprehensive income $ 16,511 $ 3,468 $ 13,043 December 31, 2018 Unrealized loss on securities: Unrealized loss on available-for-sale securities $ (5,760 ) $ (1,209 ) $ (4,551 ) Reclassification adjustment for losses realized in net income 390 82 308 Net unrealized loss (5,370 ) (1,127 ) (4,243 ) Other comprehensive loss $ (5,370 ) $ (1,127 ) $ (4,243 ) December 31, 2017 Unrealized gain on securities: Unrealized gain on available-for-sale securities $ 6,960 $ 2,137 $ 4,823 Reclassification adjustment for gains realized in net income (1,106 ) (387 ) (719 ) Net unrealized gain 5,854 1,750 4,104 Other comprehensive income $ 5,854 $ 1,750 $ 4,104 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Fair Value of Annuities | The following table summarizes the fair value of the annuities at December 31, 2019, that the Company has purchased to satisfy its obligations. Life Insurance Company A.M. Best Rating Statement Value of Annuities Exceeding 1% of Statutory Surplus (in thousands) Pacific Life and Annuity Company A+ $ 19,003 American General Life Insurance Company A 14,736 New York Life Insurance Company A++ 9,655 Travelers Life and Annuity Insurance Company A 10,018 Metropolitan Life Insurance Company A+ 6,812 John Hancock Life Insurance Company A+ 6,795 Athene Annuity and Life Company A 4,536 United of Omaha Life Insurance Company A+ 5,268 Lincoln Life Assurance Company of Boston A 3,666 Other 19,848 $ 100,337 |
Components of Lease Expense | The components of lease expense were as follows: Year Ended December 31, 2019 (in thousands) Operating lease cost $ 164 Finance lease cost: Amortization of right-of-use assets 62 Interest on lease liabilities 4 Total finance lease cost $ 66 |
Schedule of Supplemental Cash Flow Information Related to Leases | Supplemental cash flow information related to leases was as follows: Year Ended December 31, 2019 (in thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 430 Operating cash flows from finance leases 46 Financing cash flows from finance leases 47 |
Schedule of Right-of-use Assets Obtained in Exchange for Lease Obligations | Right-of-use assets obtained in the exchange for the lease obligations were as follows: December 31, 2019 (in thousands) Operating leases $ 369 Finance leases — |
Schedule of Supplemental Balance Sheet Information Related to Leases | Supplemental balance sheet information related to leases was as follows: December 31, 2019 Balance Sheet Classification (in thousands) Operating leases: Operating lease right-of-use assets $ 430 Other assets Operating lease liabilities $ 430 Accounts payable and other liabilities Finance leases: Finance lease right-of-use assets $ 185 Finance lease accumulated amortization right-of-use assets (179 ) Property and equipment, net $ 6 Property and equipment, net Finance lease liabilities $ 54 Accounts payable and other liabilities |
Schedule of Weighted Average Remaining Lease Term and Discount Rate | December 31, 2019 Weighted average remaining lease term: Operating leases 3.6 years Finance leases 1.1 years Weighted average discount rate: Operating leases 5.25 % Finance leases 5.21 % |
Schedule of Maturity Analysis of Annual Undiscounted Cash Flows of Operating and Finance Lease Liabilities | The following is a maturity analysis of the annual undiscounted cash flows of the operating and finance lease liabilities as of December 31, 2019: Operating Leases Finance Leases (in thousands) 2020 $ 137 $ 51 2021 120 5 2022 110 — 2023 75 — 2024 6 — Total lease payments 448 56 Less imputed interest 18 2 Total $ 430 $ 54 |
Concentration of Operations (Ta
Concentration of Operations (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Concentration Of Operations [Abstract] | |
Net Premiums Earned for the Top Ten States | Net premiums earned during 2019, 2018 and 2017 for the top ten states in 2019 and all others are shown below: 2019 2018 2017 Dollars Percent Dollars Percent Dollars Percent (Dollars in thousands) Florida $ 39,936 12.0 % $ 39,672 11.3 % $ 34,615 10.0 % Georgia 38,090 11.4 % 40,351 11.5 % 40,801 11.8 % Pennsylvania 27,519 8.3 % 31,708 9.1 % 32,931 9.5 % Louisiana 24,782 7.4 % 25,810 7.4 % 25,422 7.3 % North Carolina 18,800 5.7 % 19,537 5.6 % 18,388 5.3 % Illinois 16,929 5.1 % 19,710 5.6 % 22,169 6.4 % Virginia 15,249 4.6 % 15,228 4.3 % 16,298 4.7 % Minnesota 13,399 4.0 % 12,900 3.7 % 13,968 4.0 % Wisconsin 13,388 4.0 % 14,101 4.0 % 13,790 4.0 % South Carolina 13,020 3.9 % 13,924 4.0 % 13,327 3.9 % All others 111,776 33.6 % 117,385 33.5 % 114,447 33.1 % Total net premiums earned $ 332,888 100.0 % $ 350,326 100.0 % $ 346,156 100.0 % |
Fair Values of Financial Inst_2
Fair Values of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Summary of Carrying or Reported 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, 2019 2018 Carrying Amount Fair Value Carrying Amount Fair Value (in thousands) Assets: Fixed maturity securities—held to maturity $ 599,421 $ 621,343 $ 613,878 $ 616,772 Fixed maturity securities—available-for-sale 441,146 441,146 478,730 478,730 Equity securities 27,903 27,903 18,651 18,651 Short-term investments 56,548 56,548 14,231 14,231 Cash and cash equivalents 43,813 43,813 40,344 40,344 |
Schedule of Assets Measured at Fair Value on Recurring Basis | Assets measured at fair value on a recurring basis as of December 31, 2019 and 2018 are as follows: December 31, 2019 Level 1 Inputs Level 2 Inputs Level 3 Inputs Total Fair Value (in thousands) Financial instruments carried at fair value, classified as part of: Securities available-for-sale—fixed maturity: States and political subdivisions $ — $ 237,775 $ — $ 237,775 Corporate bonds — 133,778 — 133,778 U.S. agency-based mortgage-backed securities — 29,467 — 29,467 U.S. Treasury securities 40,126 — — 40,126 Total securities available-for-sale—fixed maturity 40,126 401,020 — 441,146 Equity securities: Domestic common stock 27,903 — — 27,903 Total $ 68,029 $ 401,020 $ — $ 469,049 December 31, 2018 Level 1 Inputs Level 2 Inputs Level 3 Inputs Total Fair Value (in thousands) Financial instruments carried at fair value, classified as part of: Securities available-for-sale—fixed maturity: States and political subdivisions $ — $ 233,245 $ — $ 233,245 Corporate bonds — 173,214 — 173,214 U.S. agency-based mortgage-backed securities — 12,515 — 12,515 U.S. Treasury securities 59,756 — — 59,756 Total securities available-for-sale—fixed maturity 59,756 418,974 — 478,730 Equity securities: Domestic common stock 18,651 — — 18,651 Total $ 78,407 $ 418,974 $ — $ 497,381 |
Schedule of Assets Measured at Amortized Cost | Assets measured at amortized cost as of December 31, 2019 and 2018 are as follows: December 31, 2019 Level 1 Inputs Level 2 Inputs Level 3 Inputs Total Fair Value (in thousands) Securities held-to-maturity—fixed maturity: States and political subdivisions $ — $ 485,647 $ — $ 485,647 Corporate bonds — 110,925 — 110,925 U.S. agency-based mortgage-backed securities — 11,511 — 11,511 U.S. Treasury securities 7,873 — — 7,873 Obligations of U.S. government agencies — 5,168 — 5,168 Asset-backed securities — 219 — 219 Total held-to-maturity $ 7,873 $ 613,470 $ — $ 621,343 December 31, 2018 Level 1 Inputs Level 2 Inputs Level 3 Inputs Total Fair Value (in thousands) Securities held-to-maturity—fixed maturity: States and political subdivisions $ — $ 448,947 $ — $ 448,947 Corporate bonds — 91,369 — 91,369 U.S. agency-based mortgage-backed securities — 8,349 — 8,349 U.S. Treasury securities 7,111 — — 7,111 Obligations of U.S. government agencies — 59,932 — 59,932 Asset-backed securities — 1,064 — 1,064 Total held-to-maturity $ 7,111 $ 609,661 $ — $ 616,772 |
Summary of Information Regarding 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. Year Ended December 31, 2019 2018 (in thousands) Balance, beginning of period $ — $ 34 Transfer into Level 3 — — Unrealized loss on equity security — (32 ) Sale of equity security — (2 ) Balance, end of period $ — $ — |
Quarterly Financial Data (Una_2
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Unaudited Quarterly Financial Data | The following table represents unaudited quarterly financial data for the years ended December 31, 2019 and 2018. Three Months Ended March 31 June 30 September 30 December 31 (in thousands, except per share amounts) 2019 Net premiums earned $ 84,948 $ 82,951 $ 82,712 $ 82,277 Net investment income 8,015 8,169 8,264 8,035 Net realized gains (losses) on investments 59 (82 ) (4 ) (53 ) Total revenues 95,190 91,753 91,488 91,939 Income before income taxes 23,809 22,169 26,613 42,926 Net income 19,400 17,890 21,386 34,014 Earnings per share: Basic $ 1.01 $ 0.93 $ 1.11 $ 1.77 Diluted $ 1.01 $ 0.93 $ 1.11 $ 1.76 Comprehensive income 25,193 23,068 23,862 33,610 Extraordinary cash dividends declared per common share $ — $ — $ — $ 3.50 Cash dividends declared per common share $ 0.25 $ 0.25 $ 0.25 $ 0.25 2018 Net premiums earned $ 87,310 $ 88,995 $ 85,184 $ 88,837 Net investment income 7,209 7,303 7,884 8,056 Net realized losses on investments (31 ) (1,111 ) (329 ) (65 ) Total revenues 94,175 95,380 93,529 94,669 Income before income taxes 19,414 20,930 24,460 22,777 Net income 16,169 16,956 19,701 18,806 Earnings per share: Basic $ 0.84 $ 0.88 $ 1.03 $ 0.98 Diluted $ 0.84 $ 0.88 $ 1.02 $ 0.98 Comprehensive income 10,321 17,109 17,582 22,176 Extraordinary cash dividends declared per common share $ — $ — $ — $ 3.50 Cash dividends declared per common share $ 0.22 $ 0.22 $ 0.22 $ 0.22 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2019 | |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||||
Percentage of comparable consolidated amounts | 95.00% | 95.00% | 95.00% | ||
Right-of-use assets | $ 430,000 | ||||
Operating lease liabilities | $ 430,000 | ||||
Original maturity of cash equivalent | 90 days | ||||
Minimum period of underwriting workers’ compensation insurance from which historical loss data utilize | 34 years | ||||
Experience rated commission and other operating costs | $ 0 | $ 200,000 | $ 200,000 | ||
Commutation payment adjusted through offset against balance of funds withheld and recoverable from reinsurers accounts | 8,500,000 | ||||
Advertising expense | $ 400,000 | 500,000 | $ 500,000 | ||
Assessment Related premium Payment period | 1 year | ||||
Assessment Related loss Payment period | 1 year | ||||
Buildings [Member] | |||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||||
Estimated useful life of assets | 39 years | ||||
Minimum [Member] | |||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||||
Short-term investments maturity period | 90 days | ||||
Minimum [Member] | Other Fixed Assets [Member] | |||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||||
Estimated useful life of assets | 3 years | ||||
Maximum [Member] | |||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||||
Short-term investments maturity period | 1 year | ||||
Maximum [Member] | Other Fixed Assets [Member] | |||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||||
Estimated useful life of assets | 7 years | ||||
ASU 2016-01 [Member] | |||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||||
Decrease in net income | $ 390,000 | ||||
ASU 2016-01 [Member] | Common Shares [Member] | |||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||||
Decrease to diluted earnings per common share | $ 0.02 | ||||
ASU 2016-01 [Member] | Accumulated Earnings [Member] | |||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||||
Impact of adoption of ASU | $ (615,000) | ||||
ASU 2016-02 [Member] | |||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||||
Right-of-use assets | $ 400,000 | ||||
Operating lease liabilities | $ 300,000 | ||||
Impact of adoption of ASU | $ 1,000 | ||||
ASU 2016-02 [Member] | Accumulated Earnings [Member] | |||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||||
Impact of adoption of ASU | 1,000 | ||||
ASU 2016-13 [Member] | |||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||||
Credit allowance for held-to-maturity fixed income securities | 308,000 | ||||
Credit allowance for reinsurance recoverables | 443,000 | ||||
ASU 2016-13 [Member] | Accumulated Earnings [Member] | |||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||||
Impact of adoption of ASU | $ 593,000 |
Investments - Additional Inform
Investments - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2019USD ($)Security | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Marketable Securities [Line Items] | |||
Individual fixed maturity held in unrealized loss position | Security | 59 | ||
Individual fixed maturity held in unrealized loss position longer than 12 months | Security | 11 | ||
Impairment losses recognized | $ 0 | $ 0 | $ 0 |
Held-to-Maturity Securities [Member] | |||
Marketable Securities [Line Items] | |||
Investments on deposit with regulatory agencies | 15,900,000 | ||
Available-for-Sale Securities [Member] | |||
Marketable Securities [Line Items] | |||
Investments on deposit with regulatory agencies | 2,500,000 | ||
Corporate Bonds [Member] | |||
Marketable Securities [Line Items] | |||
Short-term investments | 13,400,000 | ||
States and Political Subdivisions [Member] | |||
Marketable Securities [Line Items] | |||
Short-term investments | 1,900,000 | $ 800,000 | |
U.S. Treasury Securities and Obligations of U.S. Government Agencies [Member] | |||
Marketable Securities [Line Items] | |||
Short-term investments | $ 54,600,000 |
Investments - Gross Unrealized
Investments - Gross Unrealized Gains and Losses and Amortized Cost and Fair Value of Investments Classified as Held-to-Maturity (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Schedule Of Held To Maturity Securities [Line Items] | ||
Held-to-maturity, Amortized Cost, Totals | $ 599,421 | $ 613,878 |
Held-to-Maturity, Gross Unrealized Gains | 22,128 | 5,860 |
Held-to-Maturity, Gross Unrealized Losses | (206) | (2,966) |
Held-to-Maturity, Fair Value | 621,343 | 616,772 |
States and Political Subdivisions [Member] | ||
Schedule Of Held To Maturity Securities [Line Items] | ||
Held-to-maturity, Amortized Cost, Totals | 466,270 | 445,922 |
Held-to-Maturity, Gross Unrealized Gains | 19,570 | 5,109 |
Held-to-Maturity, Gross Unrealized Losses | (193) | (2,084) |
Held-to-Maturity, Fair Value | 485,647 | 448,947 |
Corporate Bonds [Member] | ||
Schedule Of Held To Maturity Securities [Line Items] | ||
Held-to-maturity, Amortized Cost, Totals | 109,241 | 91,762 |
Held-to-Maturity, Gross Unrealized Gains | 1,684 | 62 |
Held-to-Maturity, Gross Unrealized Losses | (455) | |
Held-to-Maturity, Fair Value | 110,925 | 91,369 |
U.S. Agency-Based Mortgage-Backed Securities [Member] | ||
Schedule Of Held To Maturity Securities [Line Items] | ||
Held-to-maturity, Amortized Cost, Totals | 10,967 | 8,102 |
Held-to-Maturity, Gross Unrealized Gains | 544 | 327 |
Held-to-Maturity, Gross Unrealized Losses | (80) | |
Held-to-Maturity, Fair Value | 11,511 | 8,349 |
U.S. Treasury Securities and Obligations of U.S. Government Agencies [Member] | ||
Schedule Of Held To Maturity Securities [Line Items] | ||
Held-to-maturity, Amortized Cost, Totals | 12,723 | 67,042 |
Held-to-Maturity, Gross Unrealized Gains | 330 | 340 |
Held-to-Maturity, Gross Unrealized Losses | (12) | (339) |
Held-to-Maturity, Fair Value | 13,041 | 67,043 |
Asset-Backed Securities [Member] | ||
Schedule Of Held To Maturity Securities [Line Items] | ||
Held-to-maturity, Amortized Cost, Totals | 220 | 1,050 |
Held-to-Maturity, Gross Unrealized Gains | 22 | |
Held-to-Maturity, Gross Unrealized Losses | (1) | (8) |
Held-to-Maturity, Fair Value | $ 219 | $ 1,064 |
Investments - Gross Unrealize_2
Investments - Gross Unrealized Gains and Losses and Cost or Amortized Cost and Fair Value of Investments Classified as Available-for-Sale (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Schedule Of Available For Sale Securities [Line Items] | ||
Available-for-sale, Amortized Cost | $ 425,698 | $ 479,772 |
Available-for-sale, Gross Unrealized Gains | 15,613 | 3,758 |
Available-for-sale, Gross Unrealized Losses | (165) | (4,800) |
Available-for-sale, Fair Value | 441,146 | 478,730 |
States and Political Subdivisions [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Available-for-sale, Amortized Cost | 225,895 | 231,848 |
Available-for-sale, Gross Unrealized Gains | 11,906 | 3,515 |
Available-for-sale, Gross Unrealized Losses | (26) | (2,118) |
Available-for-sale, Fair Value | 237,775 | 233,245 |
Corporate Bonds [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Available-for-sale, Amortized Cost | 130,453 | 173,904 |
Available-for-sale, Gross Unrealized Gains | 3,326 | 243 |
Available-for-sale, Gross Unrealized Losses | (1) | (933) |
Available-for-sale, Fair Value | 133,778 | 173,214 |
U.S. Agency-Based Mortgage-Backed Securities [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Available-for-sale, Amortized Cost | 29,499 | 12,835 |
Available-for-sale, Gross Unrealized Gains | 64 | |
Available-for-sale, Gross Unrealized Losses | (96) | (320) |
Available-for-sale, Fair Value | 29,467 | 12,515 |
U.S. Treasury Securities and Obligations of U.S. Government Agencies [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Available-for-sale, Amortized Cost | 39,851 | 61,185 |
Available-for-sale, Gross Unrealized Gains | 317 | |
Available-for-sale, Gross Unrealized Losses | (42) | (1,429) |
Available-for-sale, Fair Value | $ 40,126 | $ 59,756 |
Investments - Gross Unrealize_3
Investments - Gross Unrealized Gains and Losses and Cost of Equity (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Schedule Of Trading Securities And Other Trading Assets [Line Items] | ||
Equity securities, Cost | $ 24,457 | $ 19,962 |
Equity securities, Gross Unrealized Gains | 3,446 | 30 |
Equity securities, Gross Unrealized Losses | (1,341) | |
Equity securities, Fair Value | 27,903 | 18,651 |
Domestic Common Stock [Member] | ||
Schedule Of Trading Securities And Other Trading Assets [Line Items] | ||
Equity securities, Cost | 24,457 | 19,962 |
Equity securities, Gross Unrealized Gains | 3,446 | 30 |
Equity securities, Gross Unrealized Losses | (1,341) | |
Equity securities, Fair Value | $ 27,903 | $ 18,651 |
Investments - Summary of Amorti
Investments - Summary of Amortized Cost and Fair Value of Investments in Fixed Maturity Securities, Classified as Held-to-Maturity (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Schedule Of Held To Maturity Securities [Line Items] | ||
Within one year, Amortized Cost | $ 49,967 | $ 76,875 |
After one year through five years, Amortized Cost | 198,025 | 256,614 |
After five years through ten years, Amortized Cost | 110,460 | 81,311 |
After ten years, Amortized Cost | 229,782 | 189,926 |
Held-to-maturity, Amortized Cost, Totals | 599,421 | 613,878 |
Within one year, Fair Value | 50,348 | 76,861 |
After one year through five years, Fair Value | 202,109 | 257,530 |
After five years through ten years, Fair Value | 113,877 | 81,755 |
After ten years, Fair Value | 243,279 | 191,213 |
Held-to-maturity, Fair Value, Totals | 621,343 | 616,772 |
U.S. Agency-Based Mortgage-Backed Securities [Member] | ||
Schedule Of Held To Maturity Securities [Line Items] | ||
Without single maturity, Amortized Cost | 10,967 | 8,102 |
Held-to-maturity, Amortized Cost, Totals | 10,967 | 8,102 |
Without single maturity, Fair Value | 11,511 | 8,349 |
Held-to-maturity, Fair Value, Totals | 11,511 | 8,349 |
Asset-Backed Securities [Member] | ||
Schedule Of Held To Maturity Securities [Line Items] | ||
Without single maturity, Amortized Cost | 220 | 1,050 |
Held-to-maturity, Amortized Cost, Totals | 220 | 1,050 |
Without single maturity, Fair Value | 219 | 1,064 |
Held-to-maturity, Fair Value, Totals | $ 219 | $ 1,064 |
Investments - Summary of Amor_2
Investments - Summary of Amortized Cost and Fair Value of Investments in Fixed Maturity Securities, Classified as Available-for-Sale (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Schedule Of Available For Sale Securities [Line Items] | ||
Within one year, Amortized Cost | $ 27,160 | $ 61,650 |
After one year through five years, Amortized Cost | 144,142 | 175,743 |
After five years through ten years, Amortized Cost | 47,175 | 47,058 |
After ten years, Amortized Cost | 177,722 | 182,486 |
Available-for-sale, Amortized Cost | 425,698 | 479,772 |
Within one year, Fair Value | 27,194 | 61,435 |
After one year through five years, Fair Value | 146,469 | 174,213 |
After five years through ten years, Fair Value | 49,419 | 46,725 |
After ten years, Fair Value | 188,597 | 183,842 |
Available-for-sale, Fair Value | 441,146 | 478,730 |
U.S. Agency-Based Mortgage-Backed Securities [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Without single maturity date, Amortized Cost | 29,499 | 12,835 |
Available-for-sale, Amortized Cost | 29,499 | 12,835 |
Without single maturity date, Fair value | 29,467 | 12,515 |
Available-for-sale, Fair Value | $ 29,467 | $ 12,515 |
Investments - A Summary of the
Investments - A Summary of the Company's Realized Gains and Losses on Sales, Calls or Redemptions of Investments (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Marketable Securities [Line Items] | |||||||||||
Proceeds from sales | $ 55,090 | $ 15,028 | $ 27,764 | ||||||||
Gross realized investment gains | 176 | 239 | 486 | ||||||||
Gross realized investment (losses) | (68) | (1,354) | (5) | ||||||||
Net realized investment gains (losses) | 108 | (1,115) | 481 | ||||||||
Other, including gains (losses) on calls and redemptions | (188) | (421) | (1,128) | ||||||||
Net realized gains (losses) on investments | $ (53) | $ (4) | $ (82) | $ 59 | $ (65) | $ (329) | $ (1,111) | $ (31) | (80) | (1,536) | (647) |
Fixed Maturity Securities Available for Sale [Member] | |||||||||||
Marketable Securities [Line Items] | |||||||||||
Proceeds from sales | 33,113 | 15,025 | 14,591 | ||||||||
Gross realized investment gains | 140 | 238 | 485 | ||||||||
Gross realized investment (losses) | (68) | (1,354) | (5) | ||||||||
Net realized investment gains (losses) | 72 | (1,116) | 480 | ||||||||
Other, including gains (losses) on calls and redemptions | (196) | (144) | (520) | ||||||||
Net realized gains (losses) on investments | (124) | (1,260) | (40) | ||||||||
Equity Securities [Member] | |||||||||||
Marketable Securities [Line Items] | |||||||||||
Proceeds from sales | 3 | 1 | |||||||||
Gross realized investment gains | 1 | 1 | |||||||||
Net realized investment gains (losses) | 1 | 1 | |||||||||
Net realized gains (losses) on investments | 1 | 1 | |||||||||
Other [Member] | |||||||||||
Marketable Securities [Line Items] | |||||||||||
Proceeds from sales | 21,977 | 13,172 | |||||||||
Gross realized investment gains | 36 | ||||||||||
Net realized investment gains (losses) | 36 | ||||||||||
Other, including gains (losses) on calls and redemptions | 8 | (277) | (608) | ||||||||
Net realized gains (losses) on investments | $ 44 | $ (277) | $ (608) |
Investments - Major Categories
Investments - Major Categories of the Company's Net Investment Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Schedule Of Investment Income Reported Amounts By Category [Line Items] | |||||||||||
Total gross investment income | $ 33,449 | $ 31,418 | $ 30,383 | ||||||||
Investment expenses | (966) | (966) | (1,102) | ||||||||
Net investment income | $ 8,035 | $ 8,264 | $ 8,169 | $ 8,015 | $ 8,056 | $ 7,884 | $ 7,303 | $ 7,209 | 32,483 | 30,452 | 29,281 |
Fixed Maturity Securities Available for Sale [Member] | |||||||||||
Schedule Of Investment Income Reported Amounts By Category [Line Items] | |||||||||||
Total gross investment income | 30,343 | 28,762 | 28,961 | ||||||||
Equity Securities [Member] | |||||||||||
Schedule Of Investment Income Reported Amounts By Category [Line Items] | |||||||||||
Total gross investment income | 628 | 448 | 201 | ||||||||
Short-term Investments [Member] | |||||||||||
Schedule Of Investment Income Reported Amounts By Category [Line Items] | |||||||||||
Total gross investment income | $ 2,478 | $ 2,208 | 1,117 | ||||||||
Other Investments [Member] | |||||||||||
Schedule Of Investment Income Reported Amounts By Category [Line Items] | |||||||||||
Total gross investment income | $ 104 |
Investments - Investment Securi
Investments - Investment Securities Continuous Unrealized Loss Position (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Marketable Securities [Line Items] | ||
Held-to-Maturity, Fair Value of Investments with Unrealized Losses, Less Than 12 Months | $ 21,074 | $ 48,682 |
Held-to-Maturity, Gross Unrealized Losses, Less Than 12 Months | 193 | 99 |
Held-to-Maturity, Fair Value of Investments with Unrealized Losses, 12 Months or Greater | 3,311 | 278,163 |
Held-to-Maturity, Gross Unrealized Losses, 12 Months or Greater | 13 | 2,867 |
Held-to-Maturity, Fair Value of Investments with Unrealized Losses, Total | 24,385 | 326,845 |
Held-to-Maturity, Gross Unrealized Losses, Total | 206 | 2,966 |
Available-for Sale, Fair value of Investments with Unrealized Losses, Less Than 12 Months | 23,573 | 75,208 |
Available-for Sale, Gross Unrealized Losses, Less Than 12 Months | 122 | 360 |
Available-for Sale, Fair Value of Investments with Unrealized Losses, 12 Months or Greater | 18,220 | 218,832 |
Available-for Sale, Gross Unrealized Losses, 12 Months or Greater | 43 | 4,440 |
Available-for Sale, Fair Value of Investments with Unrealized Losses, Total | 41,793 | 294,040 |
Available-for Sale, Gross Unrealized Losses, Total | 165 | 4,800 |
Equity securities, Fair Value of Investments with Unrealized Losses, Less Than 12 Months | 18,651 | |
Equity securities, Gross Unrealized Losses, Less Than 12 Months | 1,341 | |
Equity securities, Fair Value of Investments with Unrealized Losses, Total | 18,651 | |
Equity securities, Gross Unrealized Losses, Total | 1,341 | |
Fair Value of Investments with Unrealized Losses, Less Than 12 months | 44,647 | 142,541 |
Gross Unrealized Loss, Less Than 12 Months | 315 | 1,800 |
Fair Value of Investments with Unrealized Losses, 12 Months or Greater | 21,531 | 496,995 |
Gross Unrealized Losses, 12 Months or Greater | 56 | 7,307 |
Fair Value of Investments with Unrealized Losses, Total | 66,178 | 639,536 |
Gross Unrealized Losses, Total | 371 | 9,107 |
Domestic Common Stock [Member] | ||
Marketable Securities [Line Items] | ||
Equity securities, Fair Value of Investments with Unrealized Losses, Less Than 12 Months | 18,651 | |
Equity securities, Gross Unrealized Losses, Less Than 12 Months | 1,341 | |
Equity securities, Fair Value of Investments with Unrealized Losses, Total | 18,651 | |
Equity securities, Gross Unrealized Losses, Total | 1,341 | |
States and Political Subdivisions [Member] | ||
Marketable Securities [Line Items] | ||
Held-to-Maturity, Fair Value of Investments with Unrealized Losses, Less Than 12 Months | 21,074 | 28,369 |
Held-to-Maturity, Gross Unrealized Losses, Less Than 12 Months | 193 | 59 |
Held-to-Maturity, Fair Value of Investments with Unrealized Losses, 12 Months or Greater | 180,550 | |
Held-to-Maturity, Gross Unrealized Losses, 12 Months or Greater | 2,025 | |
Held-to-Maturity, Fair Value of Investments with Unrealized Losses, Total | 21,074 | 208,919 |
Held-to-Maturity, Gross Unrealized Losses, Total | 193 | 2,084 |
Available-for Sale, Fair value of Investments with Unrealized Losses, Less Than 12 Months | 4,140 | 16,109 |
Available-for Sale, Gross Unrealized Losses, Less Than 12 Months | 26 | 81 |
Available-for Sale, Fair Value of Investments with Unrealized Losses, 12 Months or Greater | 76,255 | |
Available-for Sale, Gross Unrealized Losses, 12 Months or Greater | 2,037 | |
Available-for Sale, Fair Value of Investments with Unrealized Losses, Total | 4,140 | 92,364 |
Available-for Sale, Gross Unrealized Losses, Total | 26 | 2,118 |
Corporate Bonds [Member] | ||
Marketable Securities [Line Items] | ||
Held-to-Maturity, Fair Value of Investments with Unrealized Losses, Less Than 12 Months | 17,448 | |
Held-to-Maturity, Gross Unrealized Losses, Less Than 12 Months | 36 | |
Held-to-Maturity, Fair Value of Investments with Unrealized Losses, 12 Months or Greater | 48,315 | |
Held-to-Maturity, Gross Unrealized Losses, 12 Months or Greater | 419 | |
Held-to-Maturity, Fair Value of Investments with Unrealized Losses, Total | 65,763 | |
Held-to-Maturity, Gross Unrealized Losses, Total | 455 | |
Available-for Sale, Fair value of Investments with Unrealized Losses, Less Than 12 Months | 6,426 | 59,099 |
Available-for Sale, Gross Unrealized Losses, Less Than 12 Months | 1 | 279 |
Available-for Sale, Fair Value of Investments with Unrealized Losses, 12 Months or Greater | 70,306 | |
Available-for Sale, Gross Unrealized Losses, 12 Months or Greater | 654 | |
Available-for Sale, Fair Value of Investments with Unrealized Losses, Total | 6,426 | 129,405 |
Available-for Sale, Gross Unrealized Losses, Total | 1 | 933 |
U.S. Agency-Based Mortgage-Backed Securities [Member] | ||
Marketable Securities [Line Items] | ||
Held-to-Maturity, Fair Value of Investments with Unrealized Losses, 12 Months or Greater | 2,287 | |
Held-to-Maturity, Gross Unrealized Losses, 12 Months or Greater | 80 | |
Held-to-Maturity, Fair Value of Investments with Unrealized Losses, Total | 2,287 | |
Held-to-Maturity, Gross Unrealized Losses, Total | 80 | |
Available-for Sale, Fair value of Investments with Unrealized Losses, Less Than 12 Months | 13,007 | |
Available-for Sale, Gross Unrealized Losses, Less Than 12 Months | 95 | |
Available-for Sale, Fair Value of Investments with Unrealized Losses, 12 Months or Greater | 1,152 | 12,515 |
Available-for Sale, Gross Unrealized Losses, 12 Months or Greater | 1 | 320 |
Available-for Sale, Fair Value of Investments with Unrealized Losses, Total | 14,159 | 12,515 |
Available-for Sale, Gross Unrealized Losses, Total | 96 | 320 |
U.S. Treasury Securities and Obligations of U.S. Government Agencies [Member] | ||
Marketable Securities [Line Items] | ||
Held-to-Maturity, Fair Value of Investments with Unrealized Losses, Less Than 12 Months | 2,865 | |
Held-to-Maturity, Gross Unrealized Losses, Less Than 12 Months | 4 | |
Held-to-Maturity, Fair Value of Investments with Unrealized Losses, 12 Months or Greater | 3,243 | 46,486 |
Held-to-Maturity, Gross Unrealized Losses, 12 Months or Greater | 12 | 335 |
Held-to-Maturity, Fair Value of Investments with Unrealized Losses, Total | 3,243 | 49,351 |
Held-to-Maturity, Gross Unrealized Losses, Total | 12 | 339 |
Available-for Sale, Fair Value of Investments with Unrealized Losses, 12 Months or Greater | 17,068 | 59,756 |
Available-for Sale, Gross Unrealized Losses, 12 Months or Greater | 42 | 1,429 |
Available-for Sale, Fair Value of Investments with Unrealized Losses, Total | 17,068 | 59,756 |
Available-for Sale, Gross Unrealized Losses, Total | 42 | 1,429 |
Asset-Backed Securities [Member] | ||
Marketable Securities [Line Items] | ||
Held-to-Maturity, Fair Value of Investments with Unrealized Losses, 12 Months or Greater | 68 | 525 |
Held-to-Maturity, Gross Unrealized Losses, 12 Months or Greater | 1 | 8 |
Held-to-Maturity, Fair Value of Investments with Unrealized Losses, Total | 68 | 525 |
Held-to-Maturity, Gross Unrealized Losses, Total | $ 1 | $ 8 |
Premiums Receivable - Component
Premiums Receivable - Components of Premiums Receivable (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Premiums Receivable, Net [Abstract] | |||
Premiums receivable | $ 163,065 | $ 167,868 | |
Allowance for doubtful accounts | (5,112) | (5,390) | $ (5,226) |
Premiums receivable, net | $ 157,953 | $ 162,478 |
Premiums Receivable - Summary o
Premiums Receivable - Summary of Activity in Allowance for Doubtful Accounts (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Premiums Receivable, Allowance for Doubtful Accounts [Roll Forward] | ||
Balance, beginning of year | $ 5,390 | $ 5,226 |
Provision for bad debts | 723 | 883 |
Write-offs | (1,001) | (719) |
Balance, end of year | $ 5,112 | $ 5,390 |
Premiums Receivable - Additiona
Premiums Receivable - Additional Information (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Premiums Receivable, Net [Abstract] | |||
Earned but Unbilled | $ 8.5 | $ 7.5 | $ 6.3 |
Deferred Policy Acquisition C_3
Deferred Policy Acquisition Costs - Schedule of Major Categories of the Deferred Policy Acquisition Costs (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred Charges Insurers [Abstract] | ||||
Agents’ commissions | $ 14,290 | $ 14,953 | ||
Premium taxes | 2,960 | 3,161 | ||
Deferred underwriting expenses | 1,798 | 1,620 | ||
Total deferred policy acquisition costs | $ 19,048 | $ 19,734 | $ 20,251 | $ 19,300 |
Deferred Policy Acquisition C_4
Deferred Policy Acquisition Costs - Schedule of Activity in the Deferred Policy Acquisition Costs (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | |||
Balance, beginning of year | $ 19,734 | $ 20,251 | $ 19,300 |
Policy acquisition costs deferred | 43,872 | 45,252 | 43,960 |
Amortization expense during the year | (44,558) | (45,769) | (43,009) |
Balance, end of year | $ 19,048 | $ 19,734 | $ 20,251 |
Property and Equipment - Schedu
Property and Equipment - Schedule of Property and Equipment (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Gross | $ 21,541 | $ 21,361 |
Accumulated depreciation and amortization | (15,210) | (15,103) |
Property and equipment, net | 6,331 | 6,258 |
Land and Office Building [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Gross | 7,819 | 7,798 |
Furniture and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Gross | 6,097 | 6,150 |
Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Gross | 7,366 | 7,339 |
Automobiles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Gross | 74 | $ 74 |
Finance Lease Right-of-use Assets [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Gross | $ 185 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Detail) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Property Plant And Equipment [Abstract] | ||
Property and equipment held under capital lease | $ 184,000 | |
Accumulated depreciation | $ 120,000 | |
Finance leases, accumulated depreciation and amortization | $ 179,000 |
Reinsurance - Schedule of the E
Reinsurance - Schedule of the Effect of Reinsurance on Premiums Written and Earned (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Premiums Written and Earned [Abstract] | |||||||||||
Gross Written | $ 333,460 | $ 351,696 | $ 350,267 | ||||||||
Ceded Written | (8,995) | (9,344) | (8,869) | ||||||||
Net premiums Written | 324,465 | 342,352 | 341,398 | ||||||||
Gross Earned | 341,883 | 359,670 | 355,025 | ||||||||
Ceded Earned | (8,995) | (9,344) | (8,869) | ||||||||
Net premiums Earned | $ 82,277 | $ 82,712 | $ 82,951 | $ 84,948 | $ 88,837 | $ 85,184 | $ 88,995 | $ 87,310 | $ 332,888 | $ 350,326 | $ 346,156 |
Reinsurance - Schedule of the A
Reinsurance - Schedule of the Amounts Recoverable from Reinsurers (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Unpaid losses recoverable: | ||
Case basis | $ 82,252 | $ 76,525 |
Incurred but not reported | 13,090 | 30,691 |
Paid losses recoverable | 571 | 325 |
Experience-rated commissions recoverable | 4,465 | |
Total reinsurance recoverables | $ 95,913 | $ 112,006 |
Reinsurance - Additional Inform
Reinsurance - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Insurance [Abstract] | |||
Paid losses recoverable outstanding due date | 90 days | ||
Paid losses recoverable past due | $ 0 | ||
Received reinsurance recoveries | $ 2,000,000 | $ 1,300,000 | $ 1,600,000 |
Unsecured reinsurance recoverable by reinsurer reporting threshold | 1.50% |
Reinsurance - Schedule of Unsec
Reinsurance - Schedule of Unsecured Reinsurance Recoverables from Reinsurers (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | |
Ceded Credit Risk [Line Items] | |||
Amounts recoverable from reinsurers | $ 95,913 | $ 112,006 | |
Funds withheld and letters of credit related to the above recoverables | (58,246) | ||
Total unsecured amounts recoverable from reinsurers | 37,667 | ||
Reinsurance Recoverable [Member] | Reinsurer Concentration Risk | |||
Ceded Credit Risk [Line Items] | |||
Amounts recoverable from reinsurers | 95,913 | ||
Reinsurance Recoverable [Member] | Reinsurer Concentration Risk | Hannover Reinsurance (Ireland) Limited [Member] | A.M. Best Rating, A+ [Member] | |||
Ceded Credit Risk [Line Items] | |||
Amounts recoverable from reinsurers | [1] | 43,543 | |
Reinsurance Recoverable [Member] | Reinsurer Concentration Risk | Allianz Risk Transfer AG (Bermuda) [Member] | A.M. Best Rating, A+ [Member] | |||
Ceded Credit Risk [Line Items] | |||
Amounts recoverable from reinsurers | 11,484 | ||
Reinsurance Recoverable [Member] | Reinsurer Concentration Risk | Odyssey America Reinsurance Corporation [Member] | A.M. Best Rating, A [Member] | |||
Ceded Credit Risk [Line Items] | |||
Amounts recoverable from reinsurers | 11,273 | ||
Reinsurance Recoverable [Member] | Reinsurer Concentration Risk | Minnesota Workers' Compensation Reinsurance Association [Member] | |||
Ceded Credit Risk [Line Items] | |||
Amounts recoverable from reinsurers | [1] | 6,293 | |
Reinsurance Recoverable [Member] | Reinsurer Concentration Risk | Other Reinsurers [Member] | |||
Ceded Credit Risk [Line Items] | |||
Amounts recoverable from reinsurers | $ 23,320 | ||
[1] | Current participant in our 2020 reinsurance program. |
Income Taxes - Schedule of Comp
Income Taxes - Schedule of Company's Deferred Income Tax Assets and Liabilities (Detail) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred income tax assets: | |||
Discounting of net unpaid loss and loss adjustment expenses | $ 19,985,000 | $ 21,377,000 | |
Unearned premiums | 7,638,000 | 8,069,000 | |
Accrued expenses and other | 2,612,000 | 2,636,000 | |
State income tax | 2,484,000 | 855,000 | |
Accrued policyholder dividends | 2,330,000 | 2,188,000 | |
Impaired securities | 21,000 | ||
Capital loss carryforward | 20,000 | ||
Accrued insurance-related assessments | 2,672,000 | 3,139,000 | |
Net unrealized loss on securities | 496,000 | ||
Total deferred tax assets | 37,741,000 | 38,781,000 | |
Less: Valuation allowance | (2,025,000) | 0 | $ 0 |
Net deferred tax assets | 35,716,000 | 38,781,000 | |
Deferred income tax liabilities: | |||
Deferred policy acquisition costs | (4,838,000) | (5,207,000) | |
Callable bond amortization | (2,000) | (5,000) | |
Unrealized gain on securities available-for-sale | (3,970,000) | ||
Property and equipment and other | (271,000) | (178,000) | |
Salvage and subrogation | (636,000) | (719,000) | |
Loss reserves adjustment due to the Tax Act | (8,486,000) | (10,820,000) | |
Total deferred income tax liabilities | (18,203,000) | (16,929,000) | |
Net deferred income taxes | $ 17,513,000 | $ 21,852,000 |
Income Taxes - Components of Co
Income Taxes - Components of Consolidated Income Tax Expense (Benefit) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Current: | |||
Federal | $ 20,658 | $ 16,407 | $ 22,477 |
State | 1,297 | 1,004 | 732 |
Total Current | 21,955 | 17,411 | 23,209 |
Deferred: | |||
Federal | 732 | (1,389) | 12,965 |
State | 140 | (73) | (165) |
Total Deferred | 872 | (1,462) | 12,800 |
Income tax expense, Total | $ 22,827 | $ 15,949 | $ 36,009 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | ||||
Valuation allowance | $ 0 | $ 2,025,000 | $ 0 | $ 0 |
U.S. federal income tax statutory rate | 21.00% | 21.00% | 21.00% | 35.00% |
Revaluation of net deferred income tax assets | $ 12,600,000 | $ 12,620,000 | ||
Company recognized uncertain tax positions | $ 0 | $ 0 | $ 0 |
Income Taxes - Income Tax Expen
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 ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | ||||
Income tax computed at federal statutory tax rate | $ 24,258 | $ 18,392 | $ 28,784 | |
Tax-exempt interest, net | (2,999) | (2,965) | (5,707) | |
State income tax | 1,178 | 720 | 311 | |
Dividends received deduction | (59) | (44) | (48) | |
Revaluation of net deferred income tax assets | $ 12,600 | 12,620 | ||
Other | 449 | (154) | 49 | |
Income tax expense, Total | $ 22,827 | $ 15,949 | $ 36,009 |
Line of Credit - Additional Inf
Line of Credit - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Line of Credit Facility [Line Items] | ||
Maximum amount of line of credit | $ 20,000,000 | |
Line of credit facility expiration date | Dec. 31, 2022 | |
Outstanding borrowings or letters of credit | $ 0 | $ 0 |
Line of Credit Facility Expired December 2022 [Member] | ||
Line of Credit Facility [Line Items] | ||
Payment on unused portion of the loan | 0.25% | |
Total fee | $ 50,000 |
Loss and Loss Adjustment Expe_3
Loss and Loss Adjustment Expenses - Development Tables of Incurred and Paid Losses and Allocated Loss Adjustment Expenses Net of Reinsurance (Detail) $ in Thousands | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2019USD ($)Claim | Dec. 31, 2018USD ($) | [1] | Dec. 31, 2017USD ($) | [1] | Dec. 31, 2016USD ($) | [1] | Dec. 31, 2015USD ($) | [1] | Dec. 31, 2014USD ($) | [1] | Dec. 31, 2013USD ($) | [1] | Dec. 31, 2012USD ($) | [1] | Dec. 31, 2011USD ($) | [1] | Dec. 31, 2010USD ($) | [1] | ||
Claims Development [Line Items] | ||||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 2,147,866 | |||||||||||||||||||
Total IBNR Plus Expected Development on Reported Claims | 104,646 | |||||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 1,551,154 | |||||||||||||||||||
All outstanding liabilities before 2010, net of reinsurance | 80,832 | |||||||||||||||||||
Liabilities for loss and loss adjustment expenses, net of reinsurance | 677,544 | |||||||||||||||||||
Accident Year 2010 [Member] | ||||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | 188,096 | $ 189,040 | $ 189,403 | $ 191,000 | $ 193,029 | $ 198,861 | $ 205,769 | $ 208,035 | $ 202,479 | $ 179,156 | ||||||||||
Total IBNR Plus Expected Development on Reported Claims | $ 5,093 | |||||||||||||||||||
Cumulative Number of Claims Reported | Claim | 5,971 | |||||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 177,331 | 176,663 | 175,019 | 172,426 | 169,565 | 165,834 | 156,974 | 141,029 | 108,714 | $ 47,520 | ||||||||||
Claim Frequency | [2] | 24.94% | ||||||||||||||||||
Accident Year 2011 [Member] | ||||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 188,226 | 189,327 | 191,126 | 192,988 | 195,262 | 198,213 | 199,163 | 199,522 | 196,384 | |||||||||||
Total IBNR Plus Expected Development on Reported Claims | $ 6,008 | |||||||||||||||||||
Cumulative Number of Claims Reported | Claim | 6,044 | |||||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 170,785 | 169,994 | 167,757 | 165,967 | 161,639 | 153,968 | 140,831 | 111,029 | $ 53,329 | |||||||||||
Claim Frequency | [2] | 22.82% | ||||||||||||||||||
Accident Year 2012 [Member] | ||||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 178,586 | 180,387 | 182,859 | 184,460 | 193,515 | 212,738 | 222,075 | 222,549 | ||||||||||||
Total IBNR Plus Expected Development on Reported Claims | $ 6,834 | |||||||||||||||||||
Cumulative Number of Claims Reported | Claim | 5,749 | |||||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 161,014 | 159,807 | 157,207 | 154,553 | 149,161 | 133,658 | 107,467 | $ 50,579 | ||||||||||||
Claim Frequency | [2] | 18.73% | ||||||||||||||||||
Accident Year 2013 [Member] | ||||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 209,184 | 210,588 | 214,701 | 220,457 | 233,656 | 241,811 | 241,810 | |||||||||||||
Total IBNR Plus Expected Development on Reported Claims | $ 8,803 | |||||||||||||||||||
Cumulative Number of Claims Reported | Claim | 5,766 | |||||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 180,614 | 177,724 | 172,479 | 165,994 | 150,304 | 119,507 | $ 51,396 | |||||||||||||
Claim Frequency | [2] | 16.55% | ||||||||||||||||||
Accident Year 2014 [Member] | ||||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 218,386 | 226,933 | 235,058 | 249,097 | 268,846 | 268,846 | ||||||||||||||
Total IBNR Plus Expected Development on Reported Claims | $ 6,534 | |||||||||||||||||||
Cumulative Number of Claims Reported | Claim | 5,838 | |||||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 186,129 | 180,683 | 169,736 | 153,320 | 119,820 | $ 53,060 | ||||||||||||||
Claim Frequency | [2] | 14.99% | ||||||||||||||||||
Accident Year 2015 [Member] | ||||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 220,965 | 235,471 | 252,514 | 262,573 | 262,573 | |||||||||||||||
Total IBNR Plus Expected Development on Reported Claims | $ 12,488 | |||||||||||||||||||
Cumulative Number of Claims Reported | Claim | 5,515 | |||||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 182,053 | 170,461 | 151,818 | 121,599 | $ 54,141 | |||||||||||||||
Claim Frequency | [2] | 14.25% | ||||||||||||||||||
Accident Year 2016 [Member] | ||||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 218,005 | 241,406 | 250,491 | 250,491 | ||||||||||||||||
Total IBNR Plus Expected Development on Reported Claims | $ 11,377 | |||||||||||||||||||
Cumulative Number of Claims Reported | Claim | 5,390 | |||||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 156,861 | 143,016 | 115,713 | $ 52,238 | ||||||||||||||||
Claim Frequency | [2] | 14.22% | ||||||||||||||||||
Accident Year 2017 [Member] | ||||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 234,587 | 244,098 | 244,094 | |||||||||||||||||
Total IBNR Plus Expected Development on Reported Claims | $ 14,636 | |||||||||||||||||||
Cumulative Number of Claims Reported | Claim | 5,199 | |||||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 151,427 | 122,552 | $ 56,951 | |||||||||||||||||
Claim Frequency | [2] | 14.64% | ||||||||||||||||||
Accident Year 2018 [Member] | ||||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 250,487 | 250,487 | ||||||||||||||||||
Total IBNR Plus Expected Development on Reported Claims | $ 13,900 | |||||||||||||||||||
Cumulative Number of Claims Reported | Claim | 5,451 | |||||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 126,057 | $ 62,061 | ||||||||||||||||||
Claim Frequency | [2] | 15.16% | ||||||||||||||||||
Accident Year 2019 [Member] | ||||||||||||||||||||
Claims Development [Line Items] | ||||||||||||||||||||
Incurred Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 241,344 | |||||||||||||||||||
Total IBNR Plus Expected Development on Reported Claims | $ 18,973 | |||||||||||||||||||
Cumulative Number of Claims Reported | Claim | 4,959 | |||||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance | $ 58,883 | |||||||||||||||||||
Claim Frequency | [2] | 14.50% | ||||||||||||||||||
[1] | Data presented for these calendar years is required supplementary information, which is unaudited | |||||||||||||||||||
[2] | Frequency, as calculated above, refers to reported claims divided by gross premium earned |
Loss and Loss Adjustment Expe_4
Loss and Loss Adjustment Expenses - Summary of Average Annual Percentage Payout Of Incurred Losses By Age Net of Reinsurance For Worker's Compensation and general Liability (Unaudited) (Detail) | Dec. 31, 2019 |
Shortduration Insurance Contracts Liability For Unpaid Claims And Allocated Claim Adjustment Expense Net [Abstract] | |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 1 | 25.30% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 2 | 30.10% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 3 | 14.50% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 4 | 7.70% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 5 | 4.20% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 6 | 2.20% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 7 | 1.30% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 8 | 1.10% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 9 | 0.60% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 10 | 0.40% |
Loss and Loss Adjustment Expe_5
Loss and Loss Adjustment Expenses - Reconciliation of Beginning and Ending Reserve Balances, Net of Related Amounts Recoverable from Reinsurers (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Roll Forward In Liability For Unpaid Claims And Claims Adjustment Expense [Abstract] | |||
Balance, beginning of period | $ 798,409 | $ 771,845 | $ 742,776 |
Less amounts recoverable from reinsurers on unpaid loss and loss adjustment expenses | 107,216 | 84,889 | 78,256 |
Net balance, beginning of period | 691,193 | 686,956 | 664,520 |
Add incurred related to: | |||
Current accident year | 241,344 | 250,487 | 244,094 |
Prior accident years | (65,002) | (45,596) | (34,770) |
Total incurred | 176,342 | 204,891 | 209,324 |
Less paid related to: | |||
Current accident year | 58,883 | 62,061 | 56,951 |
Prior accident years | 131,108 | 138,593 | 129,937 |
Total paid | 189,991 | 200,654 | 186,888 |
Net balance, end of period | 677,544 | 691,193 | 686,956 |
Add amounts recoverable from reinsurers on unpaid loss and loss adjustment expenses | 95,343 | 107,216 | 84,889 |
Balance, end of period | $ 772,887 | $ 798,409 | $ 771,845 |
Loss and Loss Adjustment Expe_6
Loss and Loss Adjustment Expenses - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Unpaid Losses And Loss Expenses [Line Items] | |||
Loss and LAE Related to Prior Periods | $ 65,002 | $ 45,596 | $ 34,770 |
Minimum period of underwriting workers’ compensation insurance from which historical loss data utilize | 34 years | ||
Accident Year 2015 [Member] | |||
Unpaid Losses And Loss Expenses [Line Items] | |||
Loss and LAE Related to Prior Periods | $ 14,500 | ||
Accident Year 2016 [Member] | |||
Unpaid Losses And Loss Expenses [Line Items] | |||
Loss and LAE Related to Prior Periods | $ 23,400 |
Loss and Loss Adjustment Expe_7
Loss and Loss Adjustment Expenses - Summary Exposures to Various Asbestos Related Claims (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Asbestos Claims [Line Items] | |||
Balance, beginning of period | $ 798,409 | $ 771,845 | $ 742,776 |
Incurred losses and LAE during the current year | 176,342 | 204,891 | 209,324 |
Loss and LAE payments | (58,883) | (62,061) | (56,951) |
Balance, end of period | 772,887 | 798,409 | 771,845 |
Asbestos Issue [Member] | |||
Asbestos Claims [Line Items] | |||
Balance, beginning of period | 1,555 | 1,748 | 1,487 |
Incurred losses and LAE during the current year | (183) | 108 | 556 |
Loss and LAE payments | (49) | (301) | (295) |
Balance, end of period | $ 1,323 | $ 1,555 | $ 1,748 |
Statutory Accounting and Regu_3
Statutory Accounting and Regulatory Requirements - Insurance Subsidiaries (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Insurance [Abstract] | |||
Capital and surplus | $ 359,952 | $ 383,575 | $ 382,062 |
Net income | 92,301 | 72,979 | 61,628 |
Net realized losses on investments | $ (80) | $ (1,536) | $ (647) |
Statutory Accounting and Regu_4
Statutory Accounting and Regulatory Requirements - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Insurance [Abstract] | |||
Dividends to the Company | 10.00% | ||
Dividends paid | $ 115.9 | $ 65.4 | $ 78.9 |
Dividends permissible to pay without seeking regulatory approval | $ 88.6 |
Capital Stock - Additional Info
Capital Stock - Additional Information (Detail) - $ / shares | Dec. 31, 2019 | Dec. 31, 2018 |
Equity [Abstract] | ||
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares issued | 20,560,833 | 20,528,230 |
Common stock, shares outstanding | 19,302,583 | 19,269,980 |
Preferred stock, shares authorized | 10,000,000 | |
Preferred stock, par value | $ 0.01 | |
Preferred stock, shares outstanding | 0 |
Stock Options and Restricted _3
Stock Options and Restricted Stock - Additional Information (Detail) | 12 Months Ended | ||||
Dec. 31, 2019USD ($)Companyshares | Dec. 31, 2018USD ($)shares | Dec. 31, 2017USD ($)shares | Dec. 31, 2013USD ($) | Dec. 31, 2016shares | |
2005 Incentive Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Duration for Stock option grants exercisable | 10 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 | Company | 6 | ||||
Dividend yield assumed | 0.00% | ||||
Cash dividends paid | $ | $ 0 | ||||
Compensation expense | $ | $ 0 | $ 12,000 | $ 56,000 | ||
2005 Incentive Plan [Member] | Restricted Stock [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Restricted stock outstanding | 0 | 800 | |||
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 granted | 9,391 | 3,304 | |||
Common stock available for future awards | 320,434 | ||||
2012 Equity and Incentive Compensation Plan [Member] | Restricted Stock [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Common stock granted | 13,322 | ||||
2012 Equity and Incentive Compensation Plan [Member] | Share Based Grants [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Compensation expense | $ | $ 676,000 | $ 726,000 | $ 884,000 | ||
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 | $ | $ 1,359,000 | $ 976,000 | $ 724,000 | ||
Non-Employee Director Restricted Stock Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Restricted stock outstanding | 4,890 | 5,761 | 6,454 | 5,576 | |
Compensation expense | $ | $ 317,000 | $ 351,000 | $ 355,000 | ||
Shares authorized under incentive plan | 150,000 | ||||
Common stock granted | 4,890 | 5,761 | 6,454 | ||
Common stock available for future awards | 53,017 | ||||
Restricted stock award for a number of shares | $ | $ 50,000 | ||||
Non-Employee Director Restricted Stock Plan [Member] | Restricted Stock [Member] | Maximum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Increase in annual restricted stock award | $ | $ 75,000 |
Stock Options and Restricted _4
Stock Options and Restricted Stock - Stock Option Activity (Detail) - 2005 Incentive Plan [Member] - $ / shares | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares outstanding, Beginning balance | 5,000 | 20,000 | 20,000 | |
Shares, Granted | 0 | 0 | 0 | |
Shares, Exercised | (5,000) | (15,000) | 0 | |
Shares Canceled, forfeited, or expired | 0 | 0 | 0 | |
Shares outstanding, Ending balance | 0 | 5,000 | 20,000 | 20,000 |
Shares exercisable, Ending balance | 0 | 5,000 | 20,000 | |
Weighted- Average Exercise Price, Beginning balance | $ 3.95 | $ 5.21 | $ 8.71 | |
Weighted- Average Exercise Price, Granted | 0 | 0 | 0 | |
Weighted- Average Exercise Price, Exercised | 3.95 | 4.46 | 0 | |
Weighted- Average Exercise Price, Canceled, forfeited, or expired | 0 | 0 | 0 | |
Weighted- Average Exercise Price, Ending balance | 0 | 3.95 | 5.21 | $ 8.71 |
Weighted- Average Exercise Price, Exercisable Ending balance | $ 0 | $ 3.95 | $ 5.21 | |
Weighted- Average Remaining Contractual Life (in years) | 1 year 10 months 24 days | 2 years 1 month 6 days | 3 years 1 month 6 days | |
Weighted- Average Remaining Contractual Life (in years), Exercised | 10 months 24 days | 10 months 24 days | ||
Weighted- Average Remaining Contractual Life (in years), Exercisable | 1 year 10 months 24 days | 2 years 1 month 6 days |
Stock Options and Restricted _5
Stock Options and Restricted Stock - Weighted Average Grant Date Fair Values of Options Granted (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||
Cash received from option exercises | $ 20 | $ 67 | |
Total intrinsic value of options exercised | $ 287 | 766 | |
Aggregate intrinsic value of vested options outstanding | $ 264 | $ 1,128 |
Stock Options and Restricted _6
Stock Options and Restricted Stock - Restricted Stock Activity (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
2005 Incentive Plan [Member] | Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares, Nonvested outstanding, Beginning balance | 800 | ||
Shares, Vested | (800) | ||
Shares, Nonvested outstanding, Ending balance | 0 | ||
Weighted-Average Grant-Date Fair Value per Share, Beginning balance | $ 27.35 | ||
Weighted-Average Grant-Date Fair Value per Share, Vested | $ 27.35 | ||
2012 Incentive Plan [Member] | Common and Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares, Nonvested outstanding, Beginning balance | 39,575 | 60,879 | 76,392 |
Shares, Granted | 22,713 | 3,304 | 9,326 |
Shares, Vested | (29,760) | (24,608) | (24,839) |
Shares, Nonvested outstanding, Ending balance | 32,528 | 39,575 | 60,879 |
Weighted-Average Grant-Date Fair Value per Share, Beginning balance | $ 48.93 | $ 45.71 | $ 43.91 |
Weighted-Average Grant-Date Fair Value per Share, Granted | 61.08 | 59.16 | 55.58 |
Weighted-Average Grant-Date Fair Value per Share, Vested | 51.86 | 44.31 | 43.89 |
Weighted-Average Grant-Date Fair Value per Share, Ending balance | $ 54.02 | $ 48.93 | $ 45.71 |
Non-Employee Director Restricted Stock Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares, Nonvested outstanding, Beginning balance | 5,761 | 6,454 | 5,576 |
Shares, Granted | 4,890 | 5,761 | 6,454 |
Shares, Vested | (5,761) | (6,454) | (5,576) |
Shares, Nonvested outstanding, Ending balance | 4,890 | 5,761 | 6,454 |
Weighted-Average Grant-Date Fair Value per Share, Beginning balance | $ 60.75 | $ 54.20 | $ 64.50 |
Weighted-Average Grant-Date Fair Value per Share, Granted | 61.34 | 60.75 | 54.20 |
Weighted-Average Grant-Date Fair Value per Share, Vested | 60.75 | 54.20 | 64.50 |
Weighted-Average Grant-Date Fair Value per Share, Ending balance | $ 61.34 | $ 60.75 | $ 54.20 |
Earnings Per Share - Calculatio
Earnings Per Share - Calculation of Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Earnings Per Share Basic [Abstract] | |||||||||||
Net income – basic | $ 34,014 | $ 21,386 | $ 17,890 | $ 19,400 | $ 18,806 | $ 19,701 | $ 16,956 | $ 16,169 | $ 92,690 | $ 71,632 | $ 46,231 |
Basic weighted-average common shares | 19,248,657 | 19,208,978 | 19,165,489 | ||||||||
Basic earnings per share | $ 1.77 | $ 1.11 | $ 0.93 | $ 1.01 | $ 0.98 | $ 1.03 | $ 0.88 | $ 0.84 | $ 4.82 | $ 3.73 | $ 2.41 |
Net income - diluted | $ 92,690 | $ 71,632 | $ 46,231 | ||||||||
Weighted average common shares | 19,248,657 | 19,208,978 | 19,165,489 | ||||||||
Stock options and restricted stock | 80,000 | 84,000 | 81,000 | ||||||||
Diluted weighted average common shares | 19,329,238 | 19,293,082 | 19,245,866 | ||||||||
Diluted earnings per common share | $ 1.76 | $ 1.11 | $ 0.93 | $ 1.01 | $ 0.98 | $ 1.02 | $ 0.88 | $ 0.84 | $ 4.80 | $ 3.71 | $ 2.40 |
Earnings Per Share - Reconcilia
Earnings Per Share - Reconciliation of Weighted Average Shares used for Basic and Diluted Earnings Per Share Calculation (Detail) - shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |||
Basic weighted average common shares | 19,248,657 | 19,208,978 | 19,165,489 |
Add: Other common shares eligible for common dividends: | |||
Stock options and restricted stock | 80,581 | 84,104 | 80,377 |
Diluted weighted average common shares | 19,329,238 | 19,293,082 | 19,245,866 |
Comprehensive Income and Accu_3
Comprehensive Income and Accumulated Other Comprehensive Income - Schedule of Changes in Accumulated Other Comprehensive Income (AOCI) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning Balance | $ 409,762 | $ 425,423 | $ 456,150 |
Net current period other comprehensive income (loss) | 13,043 | (4,243) | 4,104 |
Ending Balance | 430,215 | 409,762 | 425,423 |
Accumulated Other Comprehensive Income (Loss) [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning Balance | (832) | 3,612 | (492) |
Adjusted beginning balance | (832) | 3,411 | (492) |
Other comprehensive income (loss) before reclassification | 12,379 | (4,551) | 4,823 |
Amounts reclassified from accumulated other comprehensive income (loss) | 664 | 308 | (719) |
Net current period other comprehensive income (loss) | 13,043 | (4,243) | 4,104 |
Ending Balance | $ 12,211 | (832) | $ 3,612 |
Accumulated Other Comprehensive Income (Loss) [Member] | ASU 2016-01 [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Impact of adoption of ASU | (615) | ||
Accumulated Other Comprehensive Income (Loss) [Member] | ASU 2018-02 [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Impact of adoption of ASU | $ 414 |
Comprehensive Income and Accu_4
Comprehensive Income and Accumulated Other Comprehensive Income - Reclassification Out of Accumulated Other Comprehensive Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Net realized losses on investments | $ (53) | $ (4) | $ (82) | $ 59 | $ (65) | $ (329) | $ (1,111) | $ (31) | $ (80) | $ (1,536) | $ (647) |
Income before income taxes | 42,926 | 26,613 | 22,169 | 23,809 | 22,777 | 24,460 | 20,930 | 19,414 | 115,517 | 87,581 | 82,240 |
Income tax expense | (22,827) | (15,949) | (36,009) | ||||||||
Net income | $ 34,014 | $ 21,386 | $ 17,890 | $ 19,400 | $ 18,806 | $ 19,701 | $ 16,956 | $ 16,169 | 92,690 | 71,632 | 46,231 |
Unrealized Gains (losses) on Available-for-Sale Securities [Member] | Reclassification Out of Accumulated Other Comprehensive Income [Member] | |||||||||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Net realized losses on investments | (841) | (390) | 1,106 | ||||||||
Income before income taxes | (841) | (390) | 1,106 | ||||||||
Income tax expense | 177 | 82 | (387) | ||||||||
Net income | $ (664) | $ (308) | $ 719 |
Comprehensive Income and Accu_5
Comprehensive Income and Accumulated Other Comprehensive Income - Other Comprehensive Income (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract] | |||
Unrealized gain (loss) on available-for-sale securities, Pre-Tax Amount | $ 15,670 | $ (5,760) | $ 6,960 |
Reclassification adjustment for gains (losses) realized in net income, Pre-Tax Amount | 841 | 390 | (1,106) |
Net unrealized gain loss, Pre-Tax Amount | 16,511 | (5,370) | 5,854 |
Other comprehensive income (loss), Pre-Tax Amount | 16,511 | (5,370) | 5,854 |
Unrealized gain loss on available-for-sale securities, Tax Expense (Benefit) | 3,291 | (1,209) | 2,137 |
Reclassification adjustment for gains (losses) realized in net income, Tax Expense (Benefit) | 177 | 82 | (387) |
Net unrealized gain loss, Tax Expense (Benefit) | 3,468 | (1,127) | 1,750 |
Other comprehensive income (loss), Tax Expense (Benefit) | 3,468 | (1,127) | 1,750 |
Unrealized gain (loss) on available-for-sale securities, Net-of-Tax Amount | 12,379 | (4,551) | 4,823 |
Reclassification adjustment for gains (losses) realized in net income, Net-of-Tax Amount | 664 | 308 | (719) |
Net unrealized gain loss, Net-of-Tax Amount | 13,043 | (4,243) | 4,104 |
Other comprehensive income (loss), Net-of-Tax Amount | $ 13,043 | $ (4,243) | $ 4,104 |
Employee Benefit Plan - Additio
Employee Benefit Plan - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Compensation And Retirement Disclosure [Abstract] | |||
Defined contribution plan name | 401(k) benefit plan | ||
Matches employee compensation for participating employees | 3.00% | ||
Fully vested in employer contributions | 5 years | ||
Defined contribution this plan | $ 0.7 | $ 0.7 | $ 0.6 |
Commitments and Contingencies -
Commitments and Contingencies - Fair Value of Annuities (Detail) $ in Thousands | Dec. 31, 2019USD ($) |
Commitments And Contingencies [Line Items] | |
Statement value of annuities exceeding 1% of statutory surplus | $ 100,337 |
Pacific Life and Annuity Company [Member] | A.M. Best Rating, A+ [Member] | |
Commitments And Contingencies [Line Items] | |
Statement value of annuities exceeding 1% of statutory surplus | 19,003 |
American General Life Insurance Company [Member] | A.M. Best Rating, A [Member] | |
Commitments And Contingencies [Line Items] | |
Statement value of annuities exceeding 1% of statutory surplus | 14,736 |
New York Life Insurance Company [Member] | A.M. Best Rating, A++ [Member] | |
Commitments And Contingencies [Line Items] | |
Statement value of annuities exceeding 1% of statutory surplus | 9,655 |
Travelers Life and Annuity Insurance Company [Member] | A.M. Best Rating, A [Member] | |
Commitments And Contingencies [Line Items] | |
Statement value of annuities exceeding 1% of statutory surplus | 10,018 |
Metropolitan Life Insurance Company [Member] | A.M. Best Rating, A+ [Member] | |
Commitments And Contingencies [Line Items] | |
Statement value of annuities exceeding 1% of statutory surplus | 6,812 |
John Hancock Life Insurance Company [Member] | A.M. Best Rating, A+ [Member] | |
Commitments And Contingencies [Line Items] | |
Statement value of annuities exceeding 1% of statutory surplus | 6,795 |
Athene Annuity and Life Company [Member] | A.M. Best Rating, A [Member] | |
Commitments And Contingencies [Line Items] | |
Statement value of annuities exceeding 1% of statutory surplus | 4,536 |
United of Omaha Life Insurance Company [Member] | A.M. Best Rating, A+ [Member] | |
Commitments And Contingencies [Line Items] | |
Statement value of annuities exceeding 1% of statutory surplus | 5,268 |
Lincoln Life Assurance Company of Boston [Member] | A.M. Best Rating, A [Member] | |
Commitments And Contingencies [Line Items] | |
Statement value of annuities exceeding 1% of statutory surplus | 3,666 |
Other [Member] | |
Commitments And Contingencies [Line Items] | |
Statement value of annuities exceeding 1% of statutory surplus | $ 19,848 |
Commitments and Contingencies_2
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Commitments And Contingencies [Line Items] | |||
Operating lease, existence of option to extend | true | ||
Finance lease, existence of option to extend | true | ||
Rent expense | $ 0.2 | $ 0.2 | $ 0.1 |
Minimum [Member] | |||
Commitments And Contingencies [Line Items] | |||
Operating lease, remaining lease term | 1 month | ||
Finance lease, remaining lease term | 1 month | ||
Maximum [Member] | |||
Commitments And Contingencies [Line Items] | |||
Operating lease, remaining lease term | 49 months | ||
Finance lease, remaining lease term | 49 months | ||
Operating lease, options to extend lease term | 5 years | ||
Finance lease, options to extend lease term | 5 years |
Commitments and Contingencies_3
Commitments and Contingencies - Components of Lease Expense (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Commitments And Contingencies Disclosure [Abstract] | |
Operating lease cost | $ 164 |
Finance lease cost: | |
Amortization of right-of-use assets | 62 |
Interest on lease liabilities | 4 |
Total finance lease cost | $ 66 |
Commitments and Contingencies_4
Commitments and Contingencies - Schedule of Supplemental Cash Flow Information Related to Leases (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Cash paid for amounts included in the measurement of lease liabilities: | |
Operating cash flows from operating leases | $ 430 |
Operating cash flows from finance leases | 46 |
Financing cash flows from finance leases | $ 47 |
Commitments and Contingencies_5
Commitments and Contingencies - Schedule of Right-of-use Assets Obtained in Exchange for Lease Obligations (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Commitments And Contingencies Disclosure [Abstract] | |
Operating leases | $ 369 |
Commitments and Contingencies_6
Commitments and Contingencies - Schedule of Supplemental Balance Sheet Information Related to Leases (Detail) $ in Thousands | Dec. 31, 2019USD ($) |
Commitments And Contingencies Disclosure [Abstract] | |
Operating lease right-of-use assets | $ 430 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:OtherAssets |
Operating lease liabilities | $ 430 |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | amsf:AccountsPayableAndOtherLiabilities |
Finance lease right-of-use assets | $ 185 |
Finance lease accumulated amortization right-of-use assets | (179) |
Property and equipment, net | $ 6 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:PropertyPlantAndEquipmentNet |
Finance lease liabilities | $ 54 |
Finance Lease, Liability, Statement of Financial Position [Extensible List] | amsf:AccountsPayableAndOtherLiabilities |
Commitments and Contingencies_7
Commitments and Contingencies - Schedule of Weighted Average Remaining Lease Term and Discount Rate (Detail) | Dec. 31, 2019 |
Commitments And Contingencies Disclosure [Abstract] | |
Operating leases, Weighted average remaining lease term: | 3 years 7 months 6 days |
Finance leases, Weighted average remaining lease term: | 1 year 1 month 6 days |
Operating leases, Weighted average discount rate: | 52.50% |
Finance leases, Weighted average discount rate: | 52.10% |
Commitments and Contingencies_8
Commitments and Contingencies - Schedule of Maturity Analysis of Annual Undiscounted Cash Flows of Operating and Finance Lease Liabilities (Detail) $ in Thousands | Dec. 31, 2019USD ($) |
Commitments And Contingencies Disclosure [Abstract] | |
Operating Leases, 2020 | $ 137 |
Operating Leases, 2021 | 120 |
Operating Leases, 2022 | 110 |
Operating Leases, 2023 | 75 |
Operating Leases, 2024 | 6 |
Total lease payments | 448 |
Operating Leases, Less imputed interest | 18 |
Operating Leases, Total | 430 |
Finance Leases, 2020 | 51 |
Finance Leases, 2021 | 5 |
Total lease payments | 56 |
Finance Leases, Less imputed interest | 2 |
Finance Leases, Total | $ 54 |
Concentration of Operations - N
Concentration of Operations - Net Premiums Earned for the Top Ten States (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Schedule Of Premiums Earned Net By Segment [Line Items] | |||||||||||
Net premiums earned | $ 82,277 | $ 82,712 | $ 82,951 | $ 84,948 | $ 88,837 | $ 85,184 | $ 88,995 | $ 87,310 | $ 332,888 | $ 350,326 | $ 346,156 |
Premium earned percentage | 100.00% | 100.00% | 100.00% | ||||||||
Florida [Member] | |||||||||||
Schedule Of Premiums Earned Net By Segment [Line Items] | |||||||||||
Net premiums earned | $ 39,936 | $ 39,672 | $ 34,615 | ||||||||
Premium earned percentage | 12.00% | 11.30% | 10.00% | ||||||||
Georgia [Member] | |||||||||||
Schedule Of Premiums Earned Net By Segment [Line Items] | |||||||||||
Net premiums earned | $ 38,090 | $ 40,351 | $ 40,801 | ||||||||
Premium earned percentage | 11.40% | 11.50% | 11.80% | ||||||||
Pennsylvania [Member] | |||||||||||
Schedule Of Premiums Earned Net By Segment [Line Items] | |||||||||||
Net premiums earned | $ 27,519 | $ 31,708 | $ 32,931 | ||||||||
Premium earned percentage | 8.30% | 9.10% | 9.50% | ||||||||
Louisiana [Member] | |||||||||||
Schedule Of Premiums Earned Net By Segment [Line Items] | |||||||||||
Net premiums earned | $ 24,782 | $ 25,810 | $ 25,422 | ||||||||
Premium earned percentage | 7.40% | 7.40% | 7.30% | ||||||||
North Carolina [Member] | |||||||||||
Schedule Of Premiums Earned Net By Segment [Line Items] | |||||||||||
Net premiums earned | $ 18,800 | $ 19,537 | $ 18,388 | ||||||||
Premium earned percentage | 5.70% | 5.60% | 5.30% | ||||||||
Illinois [Member] | |||||||||||
Schedule Of Premiums Earned Net By Segment [Line Items] | |||||||||||
Net premiums earned | $ 16,929 | $ 19,710 | $ 22,169 | ||||||||
Premium earned percentage | 5.10% | 5.60% | 6.40% | ||||||||
Virginia [Member] | |||||||||||
Schedule Of Premiums Earned Net By Segment [Line Items] | |||||||||||
Net premiums earned | $ 15,249 | $ 15,228 | $ 16,298 | ||||||||
Premium earned percentage | 4.60% | 4.30% | 4.70% | ||||||||
Minnesota [Member] | |||||||||||
Schedule Of Premiums Earned Net By Segment [Line Items] | |||||||||||
Net premiums earned | $ 13,399 | $ 12,900 | $ 13,968 | ||||||||
Premium earned percentage | 4.00% | 3.70% | 4.00% | ||||||||
Wisconsin [Member] | |||||||||||
Schedule Of Premiums Earned Net By Segment [Line Items] | |||||||||||
Net premiums earned | $ 13,388 | $ 14,101 | $ 13,790 | ||||||||
Premium earned percentage | 4.00% | 4.00% | 4.00% | ||||||||
South Carolina [Member] | |||||||||||
Schedule Of Premiums Earned Net By Segment [Line Items] | |||||||||||
Net premiums earned | $ 13,020 | $ 13,924 | $ 13,327 | ||||||||
Premium earned percentage | 3.90% | 4.00% | 3.90% | ||||||||
All Others [Member] | |||||||||||
Schedule Of Premiums Earned Net By Segment [Line Items] | |||||||||||
Net premiums earned | $ 111,776 | $ 117,385 | $ 114,447 | ||||||||
Premium earned percentage | 33.60% | 33.50% | 33.10% |
Fair Values of Financial Inst_3
Fair Values of Financial Instruments - Summary of Carrying or Reported Values and Corresponding Fair Values for Financial Instruments (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fixed maturity securities—held to maturity | $ 621,343 | $ 616,772 |
Fixed maturity securities—available-for-sale | 441,146 | 478,730 |
Equity securities | 27,903 | 18,651 |
Short-term investments | 56,548 | 14,231 |
Carrying Amount [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fixed maturity securities—held to maturity | 599,421 | 613,878 |
Fixed maturity securities—available-for-sale | 441,146 | 478,730 |
Equity securities | 27,903 | 18,651 |
Short-term investments | 56,548 | 14,231 |
Cash and cash equivalents | 43,813 | 40,344 |
Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fixed maturity securities—held to maturity | 621,343 | 616,772 |
Fixed maturity securities—available-for-sale | 441,146 | 478,730 |
Equity securities | 27,903 | 18,651 |
Short-term investments | 56,548 | 14,231 |
Cash and cash equivalents | $ 43,813 | $ 40,344 |
Fair Values of Financial Inst_4
Fair Values of Financial Instruments - Schedule of Assets Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale—fixed maturity, Fair Value | $ 441,146 | $ 478,730 |
Equity securities, Fair Value | 27,903 | 18,651 |
Fair Value, Measurements, Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale—fixed maturity, Fair Value | 441,146 | 478,730 |
Total | 469,049 | 497,381 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale—fixed maturity, Fair Value | 40,126 | 59,756 |
Total | 68,029 | 78,407 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale—fixed maturity, Fair Value | 401,020 | 418,974 |
Total | 401,020 | 418,974 |
Fair Value, Measurements, Recurring [Member] | States and Political Subdivisions [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale—fixed maturity, Fair Value | 237,775 | 233,245 |
Fair Value, Measurements, Recurring [Member] | States and Political Subdivisions [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale—fixed maturity, Fair Value | 237,775 | 233,245 |
Fair Value, Measurements, Recurring [Member] | Corporate Bonds [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale—fixed maturity, Fair Value | 133,778 | 173,214 |
Fair Value, Measurements, Recurring [Member] | Corporate Bonds [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale—fixed maturity, Fair Value | 133,778 | 173,214 |
Fair Value, Measurements, Recurring [Member] | U.S. Agency-Based Mortgage-Backed Securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale—fixed maturity, Fair Value | 29,467 | 12,515 |
Fair Value, Measurements, Recurring [Member] | U.S. Agency-Based Mortgage-Backed Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale—fixed maturity, Fair Value | 29,467 | 12,515 |
Fair Value, Measurements, Recurring [Member] | U.S. Treasury Securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale—fixed maturity, Fair Value | 40,126 | 59,756 |
Fair Value, Measurements, Recurring [Member] | U.S. Treasury Securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale—fixed maturity, Fair Value | 40,126 | 59,756 |
Fair Value, Measurements, Recurring [Member] | Common Stock [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Equity securities, Fair Value | 27,903 | 18,651 |
Fair Value, Measurements, Recurring [Member] | Common Stock [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Equity securities, Fair Value | $ 27,903 | $ 18,651 |
Fair Values of Financial Inst_5
Fair Values of Financial Instruments - Schedule of Assets Measured at Amortized Cost (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Securities held-to-maturity-fixed maturity, Fair Value | $ 621,343 | $ 616,772 |
States and Political Subdivisions [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Securities held-to-maturity-fixed maturity, Fair Value | 485,647 | 448,947 |
Corporate Bonds [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Securities held-to-maturity-fixed maturity, Fair Value | 110,925 | 91,369 |
U.S. Agency-Based Mortgage-Backed Securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Securities held-to-maturity-fixed maturity, Fair Value | 11,511 | 8,349 |
U.S. Treasury Securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Securities held-to-maturity-fixed maturity, Fair Value | 7,873 | 7,111 |
Obligations of U.S. Government Agencies [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Securities held-to-maturity-fixed maturity, Fair Value | 5,168 | 59,932 |
Asset-Backed Securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Securities held-to-maturity-fixed maturity, Fair Value | 219 | 1,064 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Securities held-to-maturity-fixed maturity, Fair Value | 7,873 | 7,111 |
Fair Value, Inputs, Level 1 [Member] | U.S. Treasury Securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Securities held-to-maturity-fixed maturity, Fair Value | 7,873 | 7,111 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Securities held-to-maturity-fixed maturity, Fair Value | 613,470 | 609,661 |
Fair Value, Inputs, Level 2 [Member] | States and Political Subdivisions [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Securities held-to-maturity-fixed maturity, Fair Value | 485,647 | 448,947 |
Fair Value, Inputs, Level 2 [Member] | Corporate Bonds [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Securities held-to-maturity-fixed maturity, Fair Value | 110,925 | 91,369 |
Fair Value, Inputs, Level 2 [Member] | U.S. Agency-Based Mortgage-Backed Securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Securities held-to-maturity-fixed maturity, Fair Value | 11,511 | 8,349 |
Fair Value, Inputs, Level 2 [Member] | Obligations of U.S. Government Agencies [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Securities held-to-maturity-fixed maturity, Fair Value | 5,168 | 59,932 |
Fair Value, Inputs, Level 2 [Member] | Asset-Backed Securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Securities held-to-maturity-fixed maturity, Fair Value | $ 219 | $ 1,064 |
Fair Values of Financial Inst_6
Fair Values of Financial Instruments - Summary of Information Regarding Changes in Fair Value of Assets Measured at Fair Value (Detail) - Fair Value, Inputs, Level 3 [Member] $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |
Balance, beginning of period | $ 34 |
Unrealized loss on equity security | (32) |
Sale of equity security | $ (2) |
Quarterly Financial Data (Una_3
Quarterly Financial Data (Unaudited) - Unaudited Quarterly Financial Data (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||
Net premiums earned | $ 82,277 | $ 82,712 | $ 82,951 | $ 84,948 | $ 88,837 | $ 85,184 | $ 88,995 | $ 87,310 | $ 332,888 | $ 350,326 | $ 346,156 | ||
Net investment income | 8,035 | 8,264 | 8,169 | 8,015 | 8,056 | 7,884 | 7,303 | 7,209 | 32,483 | 30,452 | 29,281 | ||
Net realized gains (losses) on investments | (53) | (4) | (82) | 59 | (65) | (329) | (1,111) | (31) | (80) | (1,536) | (647) | ||
Total revenues | 91,939 | 91,488 | 91,753 | 95,190 | 94,669 | 93,529 | 95,380 | 94,175 | 370,370 | 377,753 | 375,208 | ||
Income before income taxes | 42,926 | 26,613 | 22,169 | 23,809 | 22,777 | 24,460 | 20,930 | 19,414 | 115,517 | 87,581 | 82,240 | ||
Net income | $ 34,014 | $ 21,386 | $ 17,890 | $ 19,400 | $ 18,806 | $ 19,701 | $ 16,956 | $ 16,169 | $ 92,690 | $ 71,632 | $ 46,231 | ||
Earnings per share: | |||||||||||||
Basic | $ 1.77 | $ 1.11 | $ 0.93 | $ 1.01 | $ 0.98 | $ 1.03 | $ 0.88 | $ 0.84 | $ 4.82 | $ 3.73 | $ 2.41 | ||
Diluted | $ 1.76 | $ 1.11 | $ 0.93 | $ 1.01 | $ 0.98 | $ 1.02 | $ 0.88 | $ 0.84 | $ 4.80 | $ 3.71 | $ 2.40 | ||
Comprehensive income | $ 33,610 | $ 23,862 | $ 23,068 | $ 25,193 | $ 105,733 | $ 67,389 | $ 50,335 | ||||||
Comprehensive income | $ 22,176 | $ 17,582 | $ 17,109 | $ 10,321 | |||||||||
Extraordinary cash dividends declared per common share | $ 3.50 | $ 3.50 | $ 3.50 | $ 3.50 | $ 3.50 | $ 3.25 | $ 3 | ||||||
Cash dividends declared per common share | $ 0.25 | $ 0.25 | $ 0.25 | $ 0.25 | $ 0.22 | $ 0.22 | $ 0.22 | $ 0.22 | $ 1 | $ 0.88 | $ 0.80 |
Capital Management - Additional
Capital Management - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Oct. 31, 2016 | |
Equity [Abstract] | ||||||||
Share repurchase program, new limit amount | $ 25,000,000 | |||||||
Shares repurchased under the program | 0 | |||||||
Shares repurchased | 1,258,250 | 1,258,250 | 1,258,250 | 1,258,250 | ||||
Shares repurchased, value | $ 22,370,000 | $ 22,370,000 | $ 22,370,000 | $ 22,370,000 | ||||
Shares repurchased, average price | $ 17.78 | |||||||
Quarterly dividend per share | $ 0.25 | $ 0.22 | 0.25 | $ 0.22 | $ 0.20 | $ 0.18 | $ 0.15 | |
Extraordinary dividends declared per share | $ 3.50 | $ 3.50 | $ 3.50 | $ 3.50 | $ 3.50 | $ 3.25 | $ 3 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - $ / shares | Feb. 18, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Subsequent Event [Line Items] | ||||||
Cash dividend per share | $ 0.25 | $ 0.22 | $ 0.20 | $ 0.18 | $ 0.15 | |
Subsequent Event [Member] | Dividend Declared [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Cash dividend per share | $ 0.27 | |||||
Date of payment for dividend | Mar. 27, 2020 | |||||
Date of record for dividend payment | Mar. 13, 2020 |
Schedule II. Condensed Financ_2
Schedule II. Condensed Financial Information of Registrant - Condensed Balance Sheets (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Assets | ||||
Fixed maturity securities—available-for-sale, at fair value (amortized cost $7,210 and $0, in 2019 and 2018, respectively) | $ 441,146 | $ 478,730 | ||
Equity securities, at fair value (cost $10,007 in 2019 and 2018) | 27,903 | 18,651 | ||
Short-term investments | 56,548 | 14,231 | ||
Total investments | 1,125,018 | 1,125,490 | ||
Cash and cash equivalents | 43,813 | 40,344 | ||
Deferred income taxes | 35,716 | 38,781 | ||
Property and equipment, net | 6,331 | 6,258 | ||
Other assets | 17,587 | 17,572 | ||
Total assets | 1,492,906 | 1,515,931 | ||
Liabilities: | ||||
Accounts payable and other liabilities | 40,089 | 38,611 | ||
Total liabilities | 1,062,691 | 1,106,169 | ||
Shareholders' equity (net of Treasury stock of $22,370 at December 31, 2019 and 2018) | 430,215 | 409,762 | $ 425,423 | $ 456,150 |
Total liabilities and shareholders’ equity | 1,492,906 | 1,515,931 | ||
Parent Company [Member] | ||||
Assets | ||||
Fixed maturity securities—available-for-sale, at fair value (amortized cost $7,210 and $0, in 2019 and 2018, respectively) | 7,216 | |||
Equity securities, at fair value (cost $10,007 in 2019 and 2018) | 11,779 | 9,803 | ||
Short-term investments | 17,967 | |||
Investment in subsidiaries | 379,001 | 388,797 | ||
Total investments | 415,963 | 398,600 | ||
Cash and cash equivalents | 10,551 | 5,509 | ||
Deferred income taxes | 509 | |||
Notes receivable from subsidiaries | 2,781 | 3,270 | ||
Property and equipment, net | 1,720 | 1,536 | ||
Federal income tax recoverable | 2,798 | 2,995 | ||
Other assets | 804 | 800 | ||
Total assets | 434,617 | 413,219 | ||
Liabilities: | ||||
Accounts payable and other liabilities | 4,230 | 3,457 | ||
Deferred income taxes | 172 | |||
Total liabilities | 4,402 | 3,457 | ||
Shareholders' equity (net of Treasury stock of $22,370 at December 31, 2019 and 2018) | 430,215 | 409,762 | ||
Total liabilities and shareholders’ equity | $ 434,617 | $ 413,219 |
Schedule II. Condensed Financ_3
Schedule II. Condensed Financial Information of Registrant - Condensed Balance Sheets (Parenthetical) (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Condensed Balance Sheet Statements, Captions [Line Items] | |||
Fixed maturity securities, amortized cost | $ 425,698 | $ 479,772 | |
Equity securities, cost | 24,457 | 19,962 | |
Net of Treasury stock | $ 22,370 | 22,370 | |
Parent Company [Member] | |||
Condensed Balance Sheet Statements, Captions [Line Items] | |||
Fixed maturity securities, amortized cost | 7,210 | $ 0 | |
Equity securities, cost | 10,007 | 10,007 | |
Net of Treasury stock | $ 22,370 | $ 22,370 |
Schedule II. Condensed Financ_4
Schedule II. Condensed Financial Information of Registrant - Condensed Statements of Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenues | |||||||||||
Net investment income | $ 8,035 | $ 8,264 | $ 8,169 | $ 8,015 | $ 8,056 | $ 7,884 | $ 7,303 | $ 7,209 | $ 32,483 | $ 30,452 | $ 29,281 |
Net unrealized gains (losses) on equity securities | 4,758 | (2,088) | |||||||||
Fee and other income | 321 | 599 | 418 | ||||||||
Total revenues | 91,939 | 91,488 | 91,753 | 95,190 | 94,669 | 93,529 | 95,380 | 94,175 | 370,370 | 377,753 | 375,208 |
Expenses | |||||||||||
Total expenses | 254,853 | 290,172 | 292,968 | ||||||||
Income tax expense (benefit) | 22,827 | 15,949 | 36,009 | ||||||||
Net income | $ 34,014 | $ 21,386 | $ 17,890 | $ 19,400 | $ 18,806 | $ 19,701 | $ 16,956 | $ 16,169 | 92,690 | 71,632 | 46,231 |
Parent Company [Member] | |||||||||||
Revenues | |||||||||||
Net investment income | 915 | 1,089 | 679 | ||||||||
Net unrealized gains (losses) on equity securities | 1,977 | (948) | |||||||||
Fee and other income | 5,352 | 7,389 | 6,890 | ||||||||
Total revenues | 8,244 | 7,530 | 7,569 | ||||||||
Expenses | |||||||||||
Other operating costs | 8,244 | 7,530 | 7,569 | ||||||||
Total expenses | 8,244 | 7,530 | 7,569 | ||||||||
Income tax expense (benefit) | 376 | (36) | 125 | ||||||||
Gain (loss) before equity in earnings of subsidiaries | (376) | 36 | (125) | ||||||||
Equity in net income of subsidiaries | 93,066 | 71,596 | 46,356 | ||||||||
Net income | $ 92,690 | $ 71,632 | $ 46,231 |
Schedule II. Condensed Financ_5
Schedule II. Condensed Financial Information of Registrant - Condensed Statements of Cash Flows (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Operating activities | |||
Net cash provided by operating activities | $ 78,824 | $ 98,268 | $ 130,810 |
Investing activities | |||
Purchases of property and equipment | (1,018) | (1,126) | (478) |
Net cash provided by (used in) investing activities | 11,688 | (29,059) | (51,542) |
Financing activities | |||
Proceeds from stock option exercises | 20 | 67 | |
Finance lease purchases | (47) | ||
Dividends to shareholders | (87,016) | (84,491) | (82,645) |
Net cash used in financing activities | (87,043) | (84,424) | (82,645) |
Change in cash and cash equivalents | 3,469 | (15,215) | (3,377) |
Cash and cash equivalents at beginning of year | 40,344 | 55,559 | 58,936 |
Cash and cash equivalents at end of year | 43,813 | 40,344 | 55,559 |
Parent Company [Member] | |||
Operating activities | |||
Net cash provided by operating activities | 2,333 | 2,448 | 15,138 |
Investing activities | |||
Purchases of investments | (27,140) | (47,825) | (37,361) |
Proceeds from sales of investments | 1,987 | 54,600 | 33,000 |
Purchases of property and equipment | (995) | (1,041) | (277) |
Dividends from subsidiary | 115,900 | 65,400 | 78,900 |
Net cash provided by (used in) investing activities | 89,752 | 71,134 | 74,262 |
Financing activities | |||
Proceeds from stock option exercises | 20 | 67 | |
Finance lease purchases | (47) | ||
Dividends to shareholders | (87,016) | (84,491) | (82,645) |
Net cash used in financing activities | (87,043) | (84,424) | (82,645) |
Change in cash and cash equivalents | 5,042 | (10,842) | 6,755 |
Cash and cash equivalents at beginning of year | 5,509 | 16,351 | 9,596 |
Cash and cash equivalents at end of year | $ 10,551 | $ 5,509 | $ 16,351 |
Schedule VI. Supplemental Inf_2
Schedule VI. Supplemental Information Concerning Property-Casualty Insurance Operations (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Supplemental Information For Property Casualty Insurance Underwriters [Abstract] | |||
Deferred Policy Acquisition Costs | $ 19,048 | $ 19,734 | $ 20,251 |
Reserves for Unpaid Loss and Loss Adjustment Expense | 772,887 | 798,409 | 771,845 |
Unearned Premium | 140,873 | 149,296 | 157,270 |
Net Premiums Earned | 332,888 | 350,326 | 346,156 |
Net Investment Income | 32,483 | 30,452 | 29,281 |
Loss and LAE Related to Current Period | 241,344 | 250,487 | 244,094 |
Loss and LAE Related to Prior Periods | (65,002) | (45,596) | (34,770) |
Amortization of Deferred Policy Acquisition Costs | (44,558) | (45,769) | (43,009) |
Paid Claims and Claim Adjustment Expenses | 189,991 | 200,654 | 186,888 |
Net Premiums Written | $ 324,465 | $ 342,352 | $ 341,398 |