Document and Entity Information
Document and Entity Information Document - shares | 9 Months Ended | |
Sep. 30, 2017 | Oct. 31, 2017 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | Kinsale Capital Group, Inc. | |
Entity Central Index Key | 1,669,162 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 21,030,005 | |
Entity Well-known Seasoned Issuer | No | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Assets | ||
Fixed maturity securities available-for-sale, at fair value (amortized cost: $413,314 in 2017; $413,526 in 2016) | $ 415,893 | $ 411,223 |
Equity securities available-for-sale, at fair value (cost: $36,352 in 2017; $14,350 in 2016) | 43,010 | 18,374 |
Total investments | 458,903 | 429,597 |
Cash and cash equivalents | 96,684 | 50,752 |
Investment income due and accrued | 3,012 | 2,293 |
Premiums receivable, net | 19,103 | 16,984 |
Receivables from reinsurers | 0 | 8,567 |
Reinsurance recoverables | 46,487 | 70,317 |
Ceded unearned premiums | 13,976 | 13,512 |
Deferred policy acquisition costs, net of ceding commissions | 11,725 | 10,150 |
Intangible assets | 3,538 | 3,538 |
Deferred income tax asset, net | 4,833 | 6,605 |
Other assets | 4,733 | 2,074 |
Total assets | 662,994 | 614,389 |
Liabilities | ||
Reserves for unpaid losses and loss adjustment expenses | 310,934 | 264,801 |
Unearned premiums | 102,299 | 89,344 |
Payable to reinsurers | 3,553 | 4,090 |
Funds held for reinsurers | 0 | 36,497 |
Accounts payable and accrued expenses | 5,947 | 8,752 |
Other liabilities | 8,503 | 691 |
Total liabilities | 431,236 | 404,175 |
Stockholders' Equity | ||
Common stock, $0.01 par value, 400,000,000 shares authorized, 21,029,205 and 20,968,707 shares issued and outstanding at September 30, 2017 and December 31, 2016, respectively | 210 | 210 |
Additional paid-in capital | 154,811 | 153,353 |
Retained earnings | 68,840 | 53,640 |
Accumulated other comprehensive income | 7,897 | 3,011 |
Total stockholders’ equity | 231,758 | 210,214 |
Total liabilities and stockholders’ equity | $ 662,994 | $ 614,389 |
Consolidated Balance Sheet (Una
Consolidated Balance Sheet (Unaudited) (Parenthetical) (Parentheticals) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Assets [Abstract] | ||
Fixed maturity securities available-for-sale, amortized cost | $ 413,314 | $ 413,526 |
Equity securities available-for-sale, cost | $ 36,352 | $ 14,350 |
Stockholders' Equity | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 400,000,000 | 400,000,000 |
Common stock, shares issued (in shares) | 21,029,205 | 20,968,707 |
Common stock, shares outstanding (in shares) | 21,029,205 | 20,968,707 |
Consolidated Statements of Inco
Consolidated Statements of Income and Comprehensive Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Revenues: | ||||
Gross written premiums | $ 55,633 | $ 47,823 | $ 166,248 | $ 141,012 |
Ceded written premiums | (8,562) | (14,177) | (25,242) | (23,910) |
Net written premiums | 47,071 | 33,646 | 141,006 | 117,102 |
Change in unearned premiums | (2,041) | (672) | (12,491) | (21,748) |
Net earned premiums | 45,030 | 32,974 | 128,515 | 95,354 |
Net investment income | 2,765 | 1,894 | 7,483 | 5,389 |
Net realized investment gains | 44 | 0 | 36 | 383 |
Other income | 0 | 0 | 0 | 136 |
Total revenues | 47,839 | 34,868 | 136,034 | 101,262 |
Expenses: | ||||
Losses and loss adjustment expenses | 31,568 | 15,949 | 75,534 | 51,526 |
Underwriting, acquisition and insurance expenses | 10,989 | 6,302 | 32,775 | 19,031 |
Other expenses | 27 | 523 | 429 | 1,469 |
Total expenses | 42,584 | 22,774 | 108,738 | 72,026 |
Income before income taxes | 5,255 | 12,094 | 27,296 | 29,236 |
Total income tax expense | 1,054 | 4,112 | 8,319 | 9,940 |
Net income | 4,201 | 7,982 | 18,977 | 19,296 |
Other comprehensive income: | ||||
Change in unrealized gains (losses), net of taxes of $882 and $2,630 in 2017 and $(1) and $2,700 in 2016 | 1,639 | (1) | 4,886 | 5,016 |
Total comprehensive income | $ 5,840 | $ 7,981 | $ 23,863 | $ 24,312 |
Earnings per share: | ||||
Earnings per share - basic | $ 0.20 | $ 0.24 | $ 0.90 | $ 0.24 |
Earnings per share - diluted | $ 0.20 | $ 0.24 | $ 0.88 | $ 0.24 |
Weighted average common shares outstanding | ||||
Weighted average shares outstanding - basic | 20,995 | 20,656 | 20,978 | 20,656 |
Weighted average shares outstanding - diluted | 21,520 | 20,741 | 21,461 | 20,741 |
Cash dividends declared and paid per share | $ 0.06 | $ 0.05 | $ 0.18 | $ 0.05 |
Class A Common Stock [Member] | ||||
Expenses: | ||||
Net income | $ 0 | $ 0 | ||
Earnings per share: | ||||
Earnings per share - basic | $ 0 | 0.19 | $ 0 | 0.98 |
Earnings per share - diluted | $ 0 | $ 0.19 | $ 0 | $ 0.98 |
Weighted average common shares outstanding | ||||
Weighted average shares outstanding - basic | 0 | 14,111 | 0 | 13,844 |
Weighted average shares outstanding - diluted | 0 | 14,111 | 0 | 13,844 |
Class B Common Stock [Member] | ||||
Expenses: | ||||
Net income | $ 0 | $ 0 | ||
Earnings per share: | ||||
Earnings per share - basic | $ 0 | $ 0.21 | $ 0 | $ 0.48 |
Earnings per share - diluted | $ 0 | $ 0.20 | $ 0 | $ 0.46 |
Weighted average common shares outstanding | ||||
Weighted average shares outstanding - basic | 0 | 1,682 | 0 | 1,574 |
Weighted average shares outstanding - diluted | 0 | 1,818 | 0 | 1,644 |
Consolidated Statements of Inc5
Consolidated Statements of Income and Comprehensive Income (Unaudited) (Parenthetical) (Parentheticals) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent [Abstract] | ||||
Income taxes on net change in unrealized gains | $ 882 | $ (1) | $ 2,630 | $ 2,700 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Class A Common Stock [Member] | Class B Common Stock [Member] | Common Stock [Member] | Common Stock [Member]Class A Common Stock [Member] | Common Stock [Member]Class B Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income [Member] |
Balance, shares at Dec. 31, 2015 | 13,803,000 | 1,514,000 | 0 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Share dividend (shares) | 8,618,000 | ||||||||
Reclassification of capital structure (shares) | (22,421,000) | (1,784,000) | 15,969,000 | ||||||
Issuance of common stock in initial public offering, net of transaction costs (shares) | 5,000,000 | ||||||||
Stock-based compensation (shares) | 270,000 | ||||||||
Balance, shares at Sep. 30, 2016 | 0 | 0 | 20,969,000 | ||||||
Balance at Dec. 31, 2015 | $ 113,451 | $ 0 | $ 1 | $ 0 | $ 80,229 | $ 29,570 | $ 3,651 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Reclassification of capital structure | 0 | 160 | (1) | (159) | |||||
Issuance of common stock in initial public offering, net of transaction costs | 72,841 | 50 | 72,791 | ||||||
Stock-based compensation | 328 | 328 | |||||||
Dividends | (1,048) | (1,048) | |||||||
Other comprehensive income, net of tax | 5,016 | 5,016 | |||||||
Net income | 19,296 | 19,296 | |||||||
Balance at Sep. 30, 2016 | $ 209,884 | $ 210 | 0 | 0 | 153,189 | 47,818 | 8,667 | ||
Balance, shares at Dec. 31, 2016 | 20,968,707 | 0 | 0 | 20,969,000 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Stock-based compensation (shares) | 60,000 | ||||||||
Balance, shares at Sep. 30, 2017 | 21,029,205 | 0 | 0 | 21,029,000 | |||||
Balance at Dec. 31, 2016 | $ 210,214 | $ 210 | 0 | 0 | 153,353 | 53,640 | 3,011 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Issuance of common stock under stock-based compensation plan | 968 | 968 | |||||||
Stock-based compensation | 490 | 490 | |||||||
Dividends | (3,777) | (3,777) | |||||||
Other comprehensive income, net of tax | 4,886 | 4,886 | |||||||
Net income | 18,977 | $ 0 | $ 0 | 18,977 | |||||
Balance at Sep. 30, 2017 | $ 231,758 | $ 210 | $ 0 | $ 0 | $ 154,811 | $ 68,840 | $ 7,897 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Operating Activities | ||
Net cash provided by operating activities | $ 64,547 | $ 56,603 |
Investing Activities | ||
Purchase of property and equipment | (103) | (376) |
Change in short-term investments, net | 0 | 2,045 |
Securities available-for-sale | ||
Purchases – fixed maturity securities | (70,086) | (89,921) |
Purchases – equity securities | (20,915) | (2,303) |
Sales – fixed maturity securities | 6,939 | 13,541 |
Maturities and calls – fixed maturity securities | 68,368 | 30,441 |
Net cash used in investing activities | (15,797) | (46,573) |
Financing Activities | ||
Net proceeds from initial public offering | 0 | 72,841 |
Proceeds from stock options exercised | 968 | 0 |
Dividends paid | (3,777) | (1,048) |
Repayment of note payable | 0 | (2,500) |
Payments on capital lease | (9) | (110) |
Net cash (used in) provided by financing activities | (2,818) | 69,183 |
Net change in cash and cash equivalents | 45,932 | 79,213 |
Cash and cash equivalents at beginning of year | 50,752 | 24,544 |
Cash and cash equivalents at end of period | $ 96,684 | $ 103,757 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of significant accounting policies Basis of presentation The accompanying condensed consolidated financial statements and notes have been prepared in accordance with U.S. generally accepted accounting principles ("U.S. GAAP") for interim financial information and do not contain all of the information and footnotes required by U.S. GAAP for complete financial statements. For a more complete description of the Company’s business and accounting policies, these condensed consolidated interim financial statements should be read in conjunction with the audited consolidated financial statements of Kinsale Capital Group, Inc. and its wholly owned subsidiaries (the "Company") included in the Annual Report on Form 10-K for the year ended December 31, 2016. In the opinion of management, all adjustments necessary for a fair presentation of the condensed consolidated financial statements have been included. Such adjustments consist only of normal recurring items. All significant intercompany balances and transactions have been eliminated in consolidation. Interim results are not necessarily indicative of results of operations for the full year. Use of estimates The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Management periodically reviews its estimates and assumptions. Prospective accounting pronouncements ASU 2016-01, Financial Instruments - Overall: Recognition and Measurement of Financial Assets and Financial Liabilities In January 2016, the FASB issued ASU 2016-01, "Financial Instruments – Overall: Recognition and Measurement of Financial Assets and Financial Liabilities," which requires equity investments to be measured at fair value with changes in fair value recognized in net income, requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes, requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset, and eliminates the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost. The amendments in this ASU are effective for public companies for annual reporting periods beginning after December 15, 2017, including interim periods within those fiscal years. Upon adoption, a cumulative-effect adjustment to the balance sheet will be made as of the beginning of the fiscal year of adoption. Adoption of this ASU is not expected to have a material impact on the Company's financial position or cash flows, but may have a material impact on the Company's results of operations in the future as changes in the fair value of equity instruments will be presented in net income rather than other comprehensive income. ASU 2016-02, Leases (Topic 842) In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)" to improve the financial reporting of leasing transactions. Under this ASU, lessees will recognize a right-of-use asset and corresponding liability on the balance sheet for all leases, except for leases covering a period of fewer than 12 months. The liability is to be initially measured at the present value of the future minimum lease payments taking into account renewal options if applicable plus initial incremental direct costs such as commissions. The minimum payments are discounted using the rate implicit in the lease or, if not known, the lessee’s incremental borrowing rate at the inception of the lease. The lessee’s income statement treatment for leases will vary depending on the nature of what is being leased. A financing type lease is present when, among other matters, the asset is being leased for a substantial portion of its economic life or has an end-of-term title transfer or a bargain purchase option as in today’s practice. The payment of the liability set up for such leases will be apportioned between interest and principal; the right-of use asset will be generally amortized on a straight-line basis. If the lease does not qualify as a financing type lease, it will be accounted for on the income statement as rent on a straight-line basis. This ASU is effective for annual and interim reporting periods beginning after December 15, 2018. Early adoption is permitted. The Company is currently evaluating the impact of the adoption on its consolidated financial statements. ASU 2016-13, Financial Instruments – Credit Losses (Topic 326) On June 16, 2016, the FASB issued ASU 2016-13, "Financial Instruments – Credit Losses (Topic 326)" to provide more useful information about the expected credit losses on financial instruments. Current GAAP delays the recognition of credit losses until it is probable a loss has been incurred. The update will require a financial asset measured at amortized cost to be presented at the net amount expected to be collected by means of an allowance for credit losses that runs through net income. Credit losses relating to available-for-sale debt securities will also be recorded through an allowance for credit losses. However, the amendments would limit the amount of the allowance to the amount by which fair value is below amortized cost. The measurement of credit losses on available-for-sale securities is similar under current GAAP, but the update requires the use of the allowance account through which amounts can be reversed, rather than through an irreversible write-down. This ASU is effective for annual and interim reporting periods beginning after December 15, 2019. Early adoption is permitted beginning after December 15, 2018. Upon adoption, the update will be applied using the modified-retrospective approach, by which a cumulative-effect adjustment will be made to retained earnings as of the beginning of the first reporting period presented. The Company is currently evaluating the impact of the adoption on its consolidated financial statements. ASU 2017-08, Premium Amortization on Purchased Callable Debt Securities On March 30, 2017, the FASB issued ASU 2017-08, "Premium Amortization on Purchased Callable Debt Securities," which shortens the amortization period of the premium for certain callable debt securities, from the contractual maturity date to the earliest call date. This ASU is effective in fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted, including in an interim period. Upon adoption, the update will applied on a modified retrospective basis, with a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period presented. The Company is currently evaluating the impact of the adoption on its consolidated financial statements. There are no other prospective accounting standards which, upon their effective date, would have a material impact on the Company's consolidated financial statements. |
Investments
Investments | 9 Months Ended |
Sep. 30, 2017 | |
Investments [Abstract] | |
Investments | Investments Available-for-sale investments The following tables summarize the Company’s available-for-sale investments at September 30, 2017 and December 31, 2016: September 30, 2017 Amortized Cost Gross Unrealized Holding Gains Gross Unrealized Holding Losses Estimated Fair Value (in thousands) Fixed maturities: U.S. Treasury securities and obligations of U.S. government agencies $ 9,108 $ 5 $ (16 ) $ 9,097 Obligations of states, municipalities and political subdivisions 157,589 3,252 (941 ) 159,900 Corporate and other securities 79,978 649 (78 ) 80,549 Asset-backed securities 81,491 464 (159 ) 81,796 Residential mortgage-backed securities 85,148 507 (1,104 ) 84,551 Total fixed maturities 413,314 4,877 (2,298 ) 415,893 Equity securities: Exchange traded funds 23,819 6,716 — 30,535 Nonredeemable preferred stock 12,533 19 (77 ) 12,475 Total equity securities 36,352 6,735 (77 ) 43,010 Total available-for-sale investments $ 449,666 $ 11,612 $ (2,375 ) $ 458,903 December 31, 2016 Amortized Cost Gross Unrealized Holding Gains Gross Unrealized Holding Losses Estimated Fair Value (in thousands) Fixed maturities: U.S. Treasury securities and obligations of U.S. government agencies $ 12,106 $ 8 $ (16 ) $ 12,098 Obligations of states, municipalities and political subdivisions 124,728 1,470 (2,960 ) 123,238 Corporate and other securities 118,473 550 (233 ) 118,790 Asset-backed securities 73,317 241 (264 ) 73,294 Residential mortgage-backed securities 84,902 585 (1,684 ) 83,803 Total fixed maturities 413,526 2,854 (5,157 ) 411,223 Equity securities: Exchange traded funds 14,350 4,026 (2 ) 18,374 Total available-for-sale investments $ 427,876 $ 6,880 $ (5,159 ) $ 429,597 Available-for-sale securities in a loss position The Company regularly reviews all securities with unrealized losses to assess whether the decline in the securities’ fair value is deemed to be an other-than-temporary impairment ("OTTI"). The Company considers a number of factors in completing its OTTI review, including the length of time and the extent to which fair value has been below cost and the financial condition of an issuer. In addition to specific issuer information, the Company also evaluates the current market and interest rate environment. Generally, a change in a security’s value caused by a change in the market or interest rate environment does not constitute an OTTI, but rather a temporary decline in fair value. For fixed maturities, the Company considers whether it intends to sell the security or if it is more likely than not that it will be required to sell the security before recovery, the credit quality of the issuer and the ability to recover all amounts outstanding when contractually due. When assessing whether it intends to sell a fixed maturity or if it is likely to be required to sell a fixed maturity before recovery of its amortized cost, the Company evaluates facts and circumstances including, but not limited to, decisions to reposition the investment portfolio, potential sales of investments to meet cash flow needs and potential sales of investments to capitalize on favorable pricing. For equity securities, the Company considers the near-term prospects of an issuer and its ability and intent to hold the security for a period of time sufficient to allow for anticipated recovery. For fixed maturities where a decline in fair value is considered to be other-than-temporary and the Company intends to sell the security, or it is more likely than not that the Company will be required to sell the security before recovery of its amortized cost, an impairment is recognized in net income based on the fair value of the security at the time of assessment, resulting in a new cost basis for the security. If the decline in fair value of a fixed maturity security below its amortized cost is considered to be other-than-temporary based upon other considerations, the Company compares the estimated present value of the cash flows expected to be collected to the amortized cost of the security. The extent to which the estimated present value of the cash flows expected to be collected is less than the amortized cost of the security represents the credit-related portion of the OTTI, which is recognized in net income, resulting in a new cost basis for the security. Any remaining decline in fair value represents the noncredit portion of the OTTI, which is recognized in other comprehensive income. For equity securities, a decline in fair value that is considered to be other-than-temporary is recognized in net income based on the fair value of the security at the time of assessment, resulting in a new cost basis for the security. The following tables summarize gross unrealized losses and fair value for available-for-sale securities by length of time that the securities have continuously been in an unrealized loss position: September 30, 2017 Less than 12 Months 12 Months or Longer Total Estimated Fair Value Gross Unrealized Holding Losses Estimated Fair Value Gross Unrealized Holding Losses Estimated Fair Value Gross Unrealized Holding Losses (in thousands) Fixed maturities: U.S. Treasury securities and obligations of U.S. government agencies $ 8,982 $ (16 ) $ — $ — $ 8,982 $ (16 ) Obligations of states, municipalities and political subdivisions 54,254 (708 ) 9,862 (233 ) 64,116 (941 ) Corporate and other securities 22,365 (66 ) 8,235 (12 ) 30,600 (78 ) Asset-backed securities 13,949 (108 ) 3,381 (51 ) 17,330 (159 ) Residential mortgage-backed securities 59,610 (843 ) 9,826 (261 ) 69,436 (1,104 ) Total fixed maturities 159,160 (1,741 ) 31,304 (557 ) 190,464 (2,298 ) Equity securities: Nonredeemable preferred stock 8,128 (77 ) — — 8,128 (77 ) Total equity securities 8,128 (77 ) — — 8,128 (77 ) Total $ 167,288 $ (1,818 ) $ 31,304 $ (557 ) $ 198,592 $ (2,375 ) At September 30, 2017 , the Company held 188 fixed maturity securities with a total estimated fair value of $190.5 million and gross unrealized losses of $2.3 million . Of these securities, 40 were in a continuous unrealized loss position for greater than one year. As discussed above, the Company regularly reviews all securities within its investment portfolio to determine whether any impairment has occurred. Unrealized losses were caused by interest rate changes or other market factors and were not credit specific issues. At September 30, 2017 , 91.0% of the Company’s fixed maturity securities were rated "A-" or better and all of the Company’s fixed maturity securities made expected coupon payments under the contractual terms of the securities. At September 30, 2017 , the Company held eight non-redeemable preferred stocks in its equity portfolio with a total estimated fair value of $8.1 million and gross unrealized losses of $77 thousand . None of these securities were in a continuous unrealized loss position for greater than one year. Management concluded that there were no other-than-temporary impairments from fixed maturity or equity securities with unrealized losses for the nine months ended September 30, 2017 . December 31, 2016 Less than 12 Months 12 Months or Longer Total Estimated Fair Value Gross Unrealized Holding Losses Estimated Fair Value Gross Unrealized Holding Losses Estimated Fair Value Gross Unrealized Holding Losses (in thousands) Fixed maturities: U.S. Treasury securities and obligations of U.S. government agencies $ 8,980 $ (16 ) $ — $ — $ 8,980 $ (16 ) Obligations of states, municipalities and political subdivisions 70,727 (2,960 ) — — 70,727 (2,960 ) Corporate and other securities 50,274 (145 ) 12,375 (88 ) 62,649 (233 ) Asset-backed securities 14,750 (232 ) 9,961 (32 ) 24,711 (264 ) Residential mortgage-backed securities 65,439 (1,403 ) 7,186 (281 ) 72,625 (1,684 ) Total fixed maturities 210,170 (4,756 ) 29,522 (401 ) 239,692 (5,157 ) Equity securities: Exchange traded funds 388 (2 ) — — 388 (2 ) Total $ 210,558 $ (4,758 ) $ 29,522 $ (401 ) $ 240,080 $ (5,159 ) At December 31, 2016 , the Company held 231 fixed maturity securities with a total estimated fair value of $239.7 million and gross unrealized losses of $5.2 million . Of those securities, 24 were in a continuous unrealized loss position for greater than one year. Unrealized losses were caused by interest rate changes or other market factors and were not credit specific issues. At December 31, 2016, 92.6% of the Company’s fixed maturity securities were rated "A-" or better and all of the Company’s fixed maturity securities made expected coupon payments under the contractual terms of the securities. Based on its review, the Company concluded that none of the fixed maturity securities with an unrealized loss at December 31, 2016 experienced an other-than-temporary impairment. Within its equity portfolio, the Company holds an exchange traded fund ("ETF") with exposure across developed and emerging non-U.S. equity markets around the world. This ETF had been in an unrealized loss position for greater than one year and, management concluded based upon its review, it was other-than-temporarily impaired. The Company recognized an impairment loss of $0.3 million on this fund for the year ended December 31, 2016. Contractual maturities of available-for-sale fixed maturity securities The amortized cost and estimated fair value of available-for-sale fixed maturity securities at September 30, 2017 are summarized, by contractual maturity, as follows: September 30, 2017 Amortized Estimated Cost Fair Value (in thousands) Due in one year or less $ 51,551 $ 51,560 Due after one year through five years 37,287 37,819 Due after five years through ten years 27,275 28,385 Due after ten years 130,562 131,782 Asset-backed securities 81,491 81,796 Residential mortgage-backed securities 85,148 84,551 Total fixed maturities $ 413,314 $ 415,893 Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties, and the lenders may have the right to put the securities back to the borrower. Net investment income The following table presents the components of net investment income for the three and nine months ended September 30, 2017 and 2016 : Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 (in thousands) Interest: Taxable bonds $ 1,539 $ 1,606 $ 4,584 $ 4,519 Municipal bonds (tax exempt) 990 384 2,602 1,165 Dividends on equity securities 287 101 582 303 Cash, cash equivalents, and short-term investments 206 32 460 52 Gross investment income 3,022 2,123 8,228 6,039 Investment expenses (257 ) (229 ) (745 ) (650 ) Net investment income $ 2,765 $ 1,894 $ 7,483 $ 5,389 Realized investment gains and losses The following table presents realized investment gains and losses for the three and nine months ended September 30, 2017 and 2016 : Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 (in thousands) Realized gains: Sales of fixed maturities $ 44 $ — $ 68 $ 410 Sales of short-term and other — — — 1 Total realized gains 44 — 68 411 Realized losses: Sales of fixed maturities — — (32 ) (28 ) Total realized losses — — (32 ) (28 ) Net realized investment gains $ 44 $ — $ 36 $ 383 Change in net unrealized gains (losses) on investments The following table presents the change in available-for-sale net unrealized gains (losses) by investment type for the three and nine months ended September 30, 2017 and 2016 : Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 (in thousands) Change in net unrealized gains (losses): Fixed maturities $ 1,385 $ (545 ) $ 4,882 $ 6,471 Equity securities 1,136 544 2,634 1,245 Net increase (decrease) $ 2,521 $ (1 ) $ 7,516 $ 7,716 Insurance – statutory deposits The Company had invested assets with a carrying value of $7.1 million and $7.0 million on deposit with state regulatory authorities at September 30, 2017 and December 31, 2016 , respectively. Payable for investments purchased The Company recorded a payable for investments purchased, not yet settled, of $8.5 million at September 30, 2017 and $0.6 million at December 31, 2016. The payable balances were included in the "other liabilities" line item of the balance sheet and treated as non-cash transactions for purposes of cash flow presentation. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair value measurements Fair value was estimated for each class of financial instrument for which it was practical to estimate fair value. Fair value is defined as the price in the principal market that would be received for an asset to facilitate an orderly transaction between market participants on the measurement date. Market participants are assumed to be independent, knowledgeable, able and willing to transact an exchange and not acting under duress. Fair value hierarchy disclosures are based on the quality of inputs used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Adjustments to transaction prices or quoted market prices may be required in illiquid or disorderly markets in order to estimate fair value. The three levels of the fair value hierarchy are defined as follows: Level 1 - Inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities traded in active markets. Level 2 - Inputs to the valuation methodology 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 and market-corroborated inputs. Level 3 - Inputs to the valuation methodology are unobservable for the asset or liability and are significant to the fair value measurement. Fair values of the Company's investment portfolio are estimated using unadjusted prices obtained by its investment manager from third party pricing services, where available. For securities where the Company is unable to obtain fair values from a pricing service or broker, fair values are estimated using information obtained from the Company's investment manager. Management performs several procedures to ascertain the reasonableness of investment values included in the condensed consolidated financial statements including 1) obtaining and reviewing internal control reports from the Company's investment manager that obtain fair values from third party pricing services, 2) discussing with the Company's investment manager its process for reviewing and validating pricing obtained from outside pricing services and 3) reviewing the security pricing received from the Company's investment manager and monitoring changes in unrealized gains and losses. The Company has evaluated the various types of securities in its investment portfolio to determine an appropriate fair value hierarchy level based upon trading activity and the observability of market inputs. The following tables present the balances of assets measured at fair value on a recurring basis as of September 30, 2017 and December 31, 2016 , by level within the fair value hierarchy. September 30, 2017 Level 1 Level 2 Level 3 Total (in thousands) Assets Fixed maturities: U.S. Treasury securities and obligations of U.S. government agencies $ 9,097 $ — $ — $ 9,097 Obligations of states, municipalities and political subdivisions — 159,900 — 159,900 Corporate and other securities — 80,549 — 80,549 Asset-backed securities — 81,796 — 81,796 Residential mortgage-backed securities — 84,551 — 84,551 Total fixed maturities 9,097 406,796 — 415,893 Equity securities: Exchange traded funds 30,535 — — 30,535 Nonredeemable preferred stock — 12,475 — 12,475 Total equity securities 30,535 12,475 — 43,010 Total $ 39,632 $ 419,271 $ — $ 458,903 December 31, 2016 Level 1 Level 2 Level 3 Total (in thousands) Assets Fixed maturities: U.S. Treasury securities and obligations of U.S. government agencies $ 12,098 $ — $ — $ 12,098 Obligations of states, municipalities and political subdivisions — 123,238 — 123,238 Corporate and other securities — 118,790 — 118,790 Asset-backed securities — 73,294 — 73,294 Residential mortgage-backed securities — 83,803 — 83,803 Total fixed maturities 12,098 399,125 — 411,223 Equity securities: Exchange traded funds 18,374 — — 18,374 Nonredeemable preferred stock — — — — Total equity securities 18,374 — — 18,374 Total $ 30,472 $ 399,125 $ — $ 429,597 During the second quarter of 2017, the Company purchased one asset-backed security for $2.5 million , which was classified as a Level 3 investment since the fair value of the security was estimated using a single broker quote. During the third quarter of 2017, this investment was transferred from Level 3 to Level 2 as the Company obtained a reliable fair value estimate from a third-party pricing vendor. There were no transfers into or out of Level 1 and Level 2 during the nine months ended September 30, 2017 . There were no assets or liabilities measured at fair value on a nonrecurring basis as of September 30, 2017 and December 31, 2016 . Due to the relatively short-term nature of cash and cash equivalents, short-term investments, receivables and payables, their carrying amounts are reasonable estimates of fair value. |
Deferred Policy Acquisition Cos
Deferred Policy Acquisition Costs | 9 Months Ended |
Sep. 30, 2017 | |
Deferred Policy Acquisition Costs Disclosures [Abstract] | |
Deferred Policy Acquisition Costs | Deferred policy acquisition costs The following table presents the amounts of policy acquisition costs deferred and amortized for the three and nine months ended September 30, 2017 and 2016 : Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 (in thousands) Balance, beginning of period $ 11,578 $ 5,515 $ 10,150 $ (1,696 ) Policy acquisition costs deferred: Direct commissions 8,024 7,119 24,529 20,967 Ceding commissions (2,519 ) (4,918 ) (7,502 ) (7,122 ) Other underwriting and policy acquisition costs 713 830 2,230 2,256 Policy acquisition costs deferred 6,218 3,031 19,257 16,101 Amortization of net policy acquisition costs (6,071 ) (2,988 ) (17,682 ) (8,847 ) Balance, end of period $ 11,725 $ 5,558 $ 11,725 $ 5,558 For the three and nine months ended September 30, 2016 , the deferred ceding commissions were affected by the change in the ceding percentage under the Company's multi-line quota share reinsurance treaty ("MLQS"). See Note 9 for further details regarding the MLQS. |
Underwriting, Acquisition and I
Underwriting, Acquisition and Insurance Expenses | 9 Months Ended |
Sep. 30, 2017 | |
Underwriting, Acquisition and Insurance Expenses [Abstract] | |
Underwriting, acquisition and insurance expenses | Underwriting, acquisition and insurance expenses Underwriting, acquisition and insurance expenses for the three and nine months ended September 30, 2017 and 2016 consist of the following: Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 (in thousands) Underwriting, acquisition and insurance expenses incurred: Direct commissions $ 8,001 $ 6,839 $ 22,694 $ 19,913 Ceding commissions (2,479 ) (6,473 ) (7,291 ) (17,099 ) Other operating expenses 5,467 5,936 17,372 16,217 Total $ 10,989 $ 6,302 $ 32,775 $ 19,031 Other operating expenses within underwriting, acquisition and insurance expenses include salaries, bonus and employee benefits expenses of $4.2 million and $5.1 million for the three months ended September 30, 2017 and 2016 , respectively. Salaries, bonus and employee benefits expenses were $13.7 million and $13.9 million for the nine months ended September 30, 2017 and 2016 , respectively. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings per share The following represents a reconciliation of the numerator and denominator of the basic and diluted earnings per share computations contained in the consolidated financial statements: Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 (in thousands, except per share data) Earnings allocable to common stockholders $ 4,201 $ 4,911 $ 18,977 $ 4,911 Earnings allocable to Class A stockholders $ — $ 2,716 $ — $ 13,625 Earnings allocable to Class B stockholders $ — $ 355 $ — $ 760 Basic earnings per share: Common stock $ 0.20 $ 0.24 $ 0.90 $ 0.24 Class A common stock $ — $ 0.19 $ — $ 0.98 Class B common stock $ — $ 0.21 $ — $ 0.48 Diluted earnings per share: Common stock $ 0.20 $ 0.24 $ 0.88 $ 0.24 Class A common stock $ — $ 0.19 $ — $ 0.98 Class B common stock $ — $ 0.20 $ — $ 0.46 Basic weighted average shares outstanding: Common stock 20,995 20,656 20,978 20,656 Class A common stock — 14,111 — 13,844 Class B common stock — 1,682 — 1,574 Dilutive effect of shares issued under stock compensation arrangements: Common stock - stock options 525 85 483 85 Class B common stock - unvested restricted stock grants — 136 — 70 Diluted weighted average shares outstanding: Common stock 21,520 20,741 21,461 20,741 Class A common stock — 14,111 — 13,844 Class B common stock — 1,818 — 1,644 Prior to the reclassification of common stock on July 28, 2016, all of the earnings of the Company were allocated to Class A and Class B common stock and earnings per share was calculated using the two-class method. Under the two-class method, earnings attributable to Class A and Class B common stockholders were determined by allocating undistributed earnings to each class of stock. The undistributed earnings attributable to common stockholders were allocated based on the contractual participation rights of the Class A common stock and Class B common stock as if those earnings for the period had been distributed. Earnings attributable to Class A common stockholders equaled the sum of dividends at the rate per annum of 12% compounding annually during the period ("Accruing Dividends") plus seventy-five percent of any remaining assets of the Company available for distribution to its stockholders in the event of a liquidation, dissolution, winding up or sale of the Company after payment of the Accruing Dividends ("Residual Proceeds"). Earnings attributable to Class B common stockholders equaled twenty-five percent of the Residual Proceeds. After the reclassification of common stock on July 28, 2016, all of the earnings of the Company were attributable to the single class of common stock. Basic earnings per share for each class of common stock was computed by dividing the earnings attributable to the common stockholders by the weighted average number of shares of each respective class of common stock outstanding during the period. Diluted earnings per share attributable to each class of common stock was computed by dividing earnings attributable to common stockholders by the weighted average shares outstanding for each respective class of common stock outstanding during the period, including potentially dilutive shares of common stock for the period determined using the treasury stock method. There were no potentially dilutive shares attributable to Class A common stockholders for the three and nine months ended September 30, 2016. For purposes of the diluted earnings per share attributable to Class B common stockholders calculation, unvested restricted grants of common stock were considered to be potentially dilutive shares of common stock. There were no material anti-dilutive Class B shares for the three and nine months ended September 30, 2016. There were no anti-dilutive stock options for the three and nine months ended September 30, 2017. |
Income taxes (Notes)
Income taxes (Notes) | 9 Months Ended |
Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | Income taxes The Company's effective tax rates for the three and nine months ended September 30, 2017 were 20.1% and 30.5% , respectively, compared to 34.0% for the same periods in 2016. The decrease in the effective tax rates in 2017 was primarily due to the increase in interest income from investments in tax-exempt municipal bonds and the tax benefits related to stock options exercised in the third quarter. |
Reserves for Unpaid Losses and
Reserves for Unpaid Losses and Loss Adjustment Expenses | 9 Months Ended |
Sep. 30, 2017 | |
Liability for Unpaid Claims and Claims Adjustment Expense, Activity in Liability [Abstract] | |
Reserves for Unpaid Losses and Loss Adjustment Expenses | Reserves for unpaid losses and loss adjustment expenses The following table presents a reconciliation of consolidated beginning and ending reserves for unpaid losses and loss adjustment expenses: September 30, 2017 2016 (in thousands) Net reserves for unpaid losses and loss adjustment expenses, beginning of year $ 194,602 $ 124,126 Commutation of MLQS 27,929 24,296 Adjusted net reserves for losses and loss adjustment expenses, beginning of year 222,531 148,422 Incurred losses and loss adjustment expenses: Current year 87,365 60,392 Prior years (11,831 ) (8,866 ) Total net losses and loss adjustment expenses incurred 75,534 51,526 Payments: Current year 4,317 2,260 Prior years 28,763 21,693 Total payments 33,080 23,953 Net reserves for unpaid losses and loss adjustment expenses, end of period 264,985 175,995 Reinsurance recoverable on unpaid losses 45,949 77,463 Gross reserves for unpaid losses and loss adjustment expenses, end of period $ 310,934 $ 253,458 During the nine months ended September 30, 2017 , the reserves for unpaid losses and loss adjustment expenses held at December 31, 2016 developed favorably by $11.8 million . The favorable development was primarily attributable to the 2016, 2015 and 2014 accident years of $8.6 million , $4.8 million and $1.8 million , respectively, and resulted from reported losses emerging at a lower level than expected. This favorable development was offset by adverse development from the 2011 through 2013 accident years of $3.4 million . During the nine months ended September 30, 2016 , the reserves for unpaid losses and loss adjustment expenses held at December 31, 2015 developed favorably by $8.9 million . The favorable development was attributable primarily to the 2015 and 2014 accident years of $4.8 million and $4.1 million , respectively, and resulted from reported losses emerging at a lower level than expected. See Note 9 for further details regarding the commutation of the MLQS. |
Reinsurance
Reinsurance | 9 Months Ended |
Sep. 30, 2017 | |
Reinsurance Disclosures [Abstract] | |
Reinsurance | Reinsurance The following table summarizes the effect of reinsurance on premiums written and earned for the three and nine months ended September 30, 2017 and 2016 : Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 (in thousands) Written: Direct $ 55,633 $ 47,823 $ 166,248 $ 140,974 Assumed — — — 38 Ceded (8,562 ) (14,177 ) (25,242 ) (23,910 ) Net written $ 47,071 $ 33,646 $ 141,006 $ 117,102 Earned: Direct $ 53,527 $ 46,418 $ 153,293 $ 134,405 Assumed — 10 — 44 Ceded (8,497 ) (13,454 ) (24,778 ) (39,095 ) Net earned $ 45,030 $ 32,974 $ 128,515 $ 95,354 Incurred losses and loss adjustment expenses were net of reinsurance (ceded incurred losses and loss adjustment expenses) of $6.9 million and $3.1 million for the three months ended September 30, 2017 and 2016 , respectively. Ceded incurred losses and loss adjustment expenses were $8.7 million and $10.9 million for the nine months ended September 30, 2017 and 2016 , respectively. At September 30, 2017 reinsurance recoverables on paid and unpaid losses were $0.5 million and $45.9 million , respectively. At December 31, 2016 , reinsurance recoverables on paid and unpaid losses were $0.1 million and $70.2 million , respectively. Multi-line quota share reinsurance Historically, the Company participated in a MLQS treaty that transferred a proportion of the risk related to certain lines of business written by its subsidiary, Kinsale Insurance Company, an Arkansas insurance company ("Kinsale Insurance"), to third-party reinsurers in exchange for a proportion of the direct written premiums on that business. The MLQS was subject to annual renewal and, in accordance with the terms of the MLQS, the Company could adjust the amount of business ceded on a quarterly basis. Under the terms of the MLQS covering the period January 1, 2016 to December 31, 2016 (the "2016 MLQS"), Kinsale Insurance received a provisional ceding commission equal to 41% of ceded written premiums and paid a reinsurance margin equal to 4% of ceded written premium. The 2016 MLQS included a sliding scale commission provision that adjusted the ceding commissions within a range of 25% to 41% based on the loss experience of the business ceded. As a result of the successful completion of the initial public offering ("IPO") in August 2016, the Company terminated and commuted the 2016 MLQS on October 1, 2016. Effective January 1, 2017, the Company commuted the MLQS covering the period January 1, 2015 to December 31, 2015 (the "2015 MLQS"). The commutation reduced reinsurance recoverables on unpaid losses and receivable from reinsurers by approximately $36.5 million , with a corresponding reduction to funds held for reinsurers. The Company did not renew the MLQS for the 2017 calendar year and there are no remaining MLQS balances outstanding as of January 1, 2017. The commutations did not have any effect on the Company's results of operations or cash flows for the applicable periods. |
Other Comprehensive Income
Other Comprehensive Income | 9 Months Ended |
Sep. 30, 2017 | |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Other Comprehensive Income | Other comprehensive income The following table summarizes the components of other comprehensive income for the three and nine months ended September 30, 2017 and 2016 : Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 (in thousands) Unrealized gains arising during the period, before income taxes $ 2,552 $ (2 ) $ 7,539 $ 8,077 Income taxes (893 ) 1 (2,638 ) (2,826 ) Unrealized gains arising during the period, net of income taxes 1,659 (1 ) 4,901 5,251 Less reclassification adjustment: Net realized investment gains 31 — 23 361 Income taxes (11 ) — (8 ) (126 ) Reclassification adjustment included in net income 20 — 15 235 Other comprehensive income $ 1,639 $ (1 ) $ 4,886 $ 5,016 The sale of an available-for-sale security results in amounts being reclassified from accumulated other comprehensive income to realized gains or losses in current period earnings. The related tax effect of the reclassification adjustment is recorded in income tax expense in current period earnings. See Note 2 for additional information. |
Summary of Significant Accoun18
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of presentation The accompanying condensed consolidated financial statements and notes have been prepared in accordance with U.S. generally accepted accounting principles ("U.S. GAAP") for interim financial information and do not contain all of the information and footnotes required by U.S. GAAP for complete financial statements. For a more complete description of the Company’s business and accounting policies, these condensed consolidated interim financial statements should be read in conjunction with the audited consolidated financial statements of Kinsale Capital Group, Inc. and its wholly owned subsidiaries (the "Company") included in the Annual Report on Form 10-K for the year ended December 31, 2016. In the opinion of management, all adjustments necessary for a fair presentation of the condensed consolidated financial statements have been included. Such adjustments consist only of normal recurring items. All significant intercompany balances and transactions have been eliminated in consolidation. Interim results are not necessarily indicative of results of operations for the full year. |
Use of Estimates | Use of estimates The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Management periodically reviews its estimates and assumptions. |
Prospective Accounting Pronouncements | Prospective accounting pronouncements ASU 2016-01, Financial Instruments - Overall: Recognition and Measurement of Financial Assets and Financial Liabilities In January 2016, the FASB issued ASU 2016-01, "Financial Instruments – Overall: Recognition and Measurement of Financial Assets and Financial Liabilities," which requires equity investments to be measured at fair value with changes in fair value recognized in net income, requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes, requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset, and eliminates the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost. The amendments in this ASU are effective for public companies for annual reporting periods beginning after December 15, 2017, including interim periods within those fiscal years. Upon adoption, a cumulative-effect adjustment to the balance sheet will be made as of the beginning of the fiscal year of adoption. Adoption of this ASU is not expected to have a material impact on the Company's financial position or cash flows, but may have a material impact on the Company's results of operations in the future as changes in the fair value of equity instruments will be presented in net income rather than other comprehensive income. ASU 2016-02, Leases (Topic 842) In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)" to improve the financial reporting of leasing transactions. Under this ASU, lessees will recognize a right-of-use asset and corresponding liability on the balance sheet for all leases, except for leases covering a period of fewer than 12 months. The liability is to be initially measured at the present value of the future minimum lease payments taking into account renewal options if applicable plus initial incremental direct costs such as commissions. The minimum payments are discounted using the rate implicit in the lease or, if not known, the lessee’s incremental borrowing rate at the inception of the lease. The lessee’s income statement treatment for leases will vary depending on the nature of what is being leased. A financing type lease is present when, among other matters, the asset is being leased for a substantial portion of its economic life or has an end-of-term title transfer or a bargain purchase option as in today’s practice. The payment of the liability set up for such leases will be apportioned between interest and principal; the right-of use asset will be generally amortized on a straight-line basis. If the lease does not qualify as a financing type lease, it will be accounted for on the income statement as rent on a straight-line basis. This ASU is effective for annual and interim reporting periods beginning after December 15, 2018. Early adoption is permitted. The Company is currently evaluating the impact of the adoption on its consolidated financial statements. ASU 2016-13, Financial Instruments – Credit Losses (Topic 326) On June 16, 2016, the FASB issued ASU 2016-13, "Financial Instruments – Credit Losses (Topic 326)" to provide more useful information about the expected credit losses on financial instruments. Current GAAP delays the recognition of credit losses until it is probable a loss has been incurred. The update will require a financial asset measured at amortized cost to be presented at the net amount expected to be collected by means of an allowance for credit losses that runs through net income. Credit losses relating to available-for-sale debt securities will also be recorded through an allowance for credit losses. However, the amendments would limit the amount of the allowance to the amount by which fair value is below amortized cost. The measurement of credit losses on available-for-sale securities is similar under current GAAP, but the update requires the use of the allowance account through which amounts can be reversed, rather than through an irreversible write-down. This ASU is effective for annual and interim reporting periods beginning after December 15, 2019. Early adoption is permitted beginning after December 15, 2018. Upon adoption, the update will be applied using the modified-retrospective approach, by which a cumulative-effect adjustment will be made to retained earnings as of the beginning of the first reporting period presented. The Company is currently evaluating the impact of the adoption on its consolidated financial statements. ASU 2017-08, Premium Amortization on Purchased Callable Debt Securities On March 30, 2017, the FASB issued ASU 2017-08, "Premium Amortization on Purchased Callable Debt Securities," which shortens the amortization period of the premium for certain callable debt securities, from the contractual maturity date to the earliest call date. This ASU is effective in fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted, including in an interim period. Upon adoption, the update will applied on a modified retrospective basis, with a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period presented. The Company is currently evaluating the impact of the adoption on its consolidated financial statements. There are no other prospective accounting standards which, upon their effective date, would have a material impact on the Company's consolidated financial statements. |
Investments (Tables)
Investments (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Investments [Abstract] | |
Available-for-sale Investments | The following tables summarize the Company’s available-for-sale investments at September 30, 2017 and December 31, 2016: September 30, 2017 Amortized Cost Gross Unrealized Holding Gains Gross Unrealized Holding Losses Estimated Fair Value (in thousands) Fixed maturities: U.S. Treasury securities and obligations of U.S. government agencies $ 9,108 $ 5 $ (16 ) $ 9,097 Obligations of states, municipalities and political subdivisions 157,589 3,252 (941 ) 159,900 Corporate and other securities 79,978 649 (78 ) 80,549 Asset-backed securities 81,491 464 (159 ) 81,796 Residential mortgage-backed securities 85,148 507 (1,104 ) 84,551 Total fixed maturities 413,314 4,877 (2,298 ) 415,893 Equity securities: Exchange traded funds 23,819 6,716 — 30,535 Nonredeemable preferred stock 12,533 19 (77 ) 12,475 Total equity securities 36,352 6,735 (77 ) 43,010 Total available-for-sale investments $ 449,666 $ 11,612 $ (2,375 ) $ 458,903 December 31, 2016 Amortized Cost Gross Unrealized Holding Gains Gross Unrealized Holding Losses Estimated Fair Value (in thousands) Fixed maturities: U.S. Treasury securities and obligations of U.S. government agencies $ 12,106 $ 8 $ (16 ) $ 12,098 Obligations of states, municipalities and political subdivisions 124,728 1,470 (2,960 ) 123,238 Corporate and other securities 118,473 550 (233 ) 118,790 Asset-backed securities 73,317 241 (264 ) 73,294 Residential mortgage-backed securities 84,902 585 (1,684 ) 83,803 Total fixed maturities 413,526 2,854 (5,157 ) 411,223 Equity securities: Exchange traded funds 14,350 4,026 (2 ) 18,374 Total available-for-sale investments $ 427,876 $ 6,880 $ (5,159 ) $ 429,597 |
Available-for-sale Securities in a Loss Position | The following tables summarize gross unrealized losses and fair value for available-for-sale securities by length of time that the securities have continuously been in an unrealized loss position: September 30, 2017 Less than 12 Months 12 Months or Longer Total Estimated Fair Value Gross Unrealized Holding Losses Estimated Fair Value Gross Unrealized Holding Losses Estimated Fair Value Gross Unrealized Holding Losses (in thousands) Fixed maturities: U.S. Treasury securities and obligations of U.S. government agencies $ 8,982 $ (16 ) $ — $ — $ 8,982 $ (16 ) Obligations of states, municipalities and political subdivisions 54,254 (708 ) 9,862 (233 ) 64,116 (941 ) Corporate and other securities 22,365 (66 ) 8,235 (12 ) 30,600 (78 ) Asset-backed securities 13,949 (108 ) 3,381 (51 ) 17,330 (159 ) Residential mortgage-backed securities 59,610 (843 ) 9,826 (261 ) 69,436 (1,104 ) Total fixed maturities 159,160 (1,741 ) 31,304 (557 ) 190,464 (2,298 ) Equity securities: Nonredeemable preferred stock 8,128 (77 ) — — 8,128 (77 ) Total equity securities 8,128 (77 ) — — 8,128 (77 ) Total $ 167,288 $ (1,818 ) $ 31,304 $ (557 ) $ 198,592 $ (2,375 ) December 31, 2016 Less than 12 Months 12 Months or Longer Total Estimated Fair Value Gross Unrealized Holding Losses Estimated Fair Value Gross Unrealized Holding Losses Estimated Fair Value Gross Unrealized Holding Losses (in thousands) Fixed maturities: U.S. Treasury securities and obligations of U.S. government agencies $ 8,980 $ (16 ) $ — $ — $ 8,980 $ (16 ) Obligations of states, municipalities and political subdivisions 70,727 (2,960 ) — — 70,727 (2,960 ) Corporate and other securities 50,274 (145 ) 12,375 (88 ) 62,649 (233 ) Asset-backed securities 14,750 (232 ) 9,961 (32 ) 24,711 (264 ) Residential mortgage-backed securities 65,439 (1,403 ) 7,186 (281 ) 72,625 (1,684 ) Total fixed maturities 210,170 (4,756 ) 29,522 (401 ) 239,692 (5,157 ) Equity securities: Exchange traded funds 388 (2 ) — — 388 (2 ) Total $ 210,558 $ (4,758 ) $ 29,522 $ (401 ) $ 240,080 $ (5,159 ) |
Contractual Maturities of Available-for-sale Fixed Maturity Securities | The amortized cost and estimated fair value of available-for-sale fixed maturity securities at September 30, 2017 are summarized, by contractual maturity, as follows: September 30, 2017 Amortized Estimated Cost Fair Value (in thousands) Due in one year or less $ 51,551 $ 51,560 Due after one year through five years 37,287 37,819 Due after five years through ten years 27,275 28,385 Due after ten years 130,562 131,782 Asset-backed securities 81,491 81,796 Residential mortgage-backed securities 85,148 84,551 Total fixed maturities $ 413,314 $ 415,893 |
Net Investment Income | The following table presents the components of net investment income for the three and nine months ended September 30, 2017 and 2016 : Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 (in thousands) Interest: Taxable bonds $ 1,539 $ 1,606 $ 4,584 $ 4,519 Municipal bonds (tax exempt) 990 384 2,602 1,165 Dividends on equity securities 287 101 582 303 Cash, cash equivalents, and short-term investments 206 32 460 52 Gross investment income 3,022 2,123 8,228 6,039 Investment expenses (257 ) (229 ) (745 ) (650 ) Net investment income $ 2,765 $ 1,894 $ 7,483 $ 5,389 |
Realized Gain (Loss) on Investments | The following table presents realized investment gains and losses for the three and nine months ended September 30, 2017 and 2016 : Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 (in thousands) Realized gains: Sales of fixed maturities $ 44 $ — $ 68 $ 410 Sales of short-term and other — — — 1 Total realized gains 44 — 68 411 Realized losses: Sales of fixed maturities — — (32 ) (28 ) Total realized losses — — (32 ) (28 ) Net realized investment gains $ 44 $ — $ 36 $ 383 |
Change in Unrealized Gains (Losses) on Investments | The following table presents the change in available-for-sale net unrealized gains (losses) by investment type for the three and nine months ended September 30, 2017 and 2016 : Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 (in thousands) Change in net unrealized gains (losses): Fixed maturities $ 1,385 $ (545 ) $ 4,882 $ 6,471 Equity securities 1,136 544 2,634 1,245 Net increase (decrease) $ 2,521 $ (1 ) $ 7,516 $ 7,716 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Assets Measured at Fair Value on a Recurring Basis | The following tables present the balances of assets measured at fair value on a recurring basis as of September 30, 2017 and December 31, 2016 , by level within the fair value hierarchy. September 30, 2017 Level 1 Level 2 Level 3 Total (in thousands) Assets Fixed maturities: U.S. Treasury securities and obligations of U.S. government agencies $ 9,097 $ — $ — $ 9,097 Obligations of states, municipalities and political subdivisions — 159,900 — 159,900 Corporate and other securities — 80,549 — 80,549 Asset-backed securities — 81,796 — 81,796 Residential mortgage-backed securities — 84,551 — 84,551 Total fixed maturities 9,097 406,796 — 415,893 Equity securities: Exchange traded funds 30,535 — — 30,535 Nonredeemable preferred stock — 12,475 — 12,475 Total equity securities 30,535 12,475 — 43,010 Total $ 39,632 $ 419,271 $ — $ 458,903 December 31, 2016 Level 1 Level 2 Level 3 Total (in thousands) Assets Fixed maturities: U.S. Treasury securities and obligations of U.S. government agencies $ 12,098 $ — $ — $ 12,098 Obligations of states, municipalities and political subdivisions — 123,238 — 123,238 Corporate and other securities — 118,790 — 118,790 Asset-backed securities — 73,294 — 73,294 Residential mortgage-backed securities — 83,803 — 83,803 Total fixed maturities 12,098 399,125 — 411,223 Equity securities: Exchange traded funds 18,374 — — 18,374 Nonredeemable preferred stock — — — — Total equity securities 18,374 — — 18,374 Total $ 30,472 $ 399,125 $ — $ 429,597 |
Deferred Policy Acquisition C21
Deferred Policy Acquisition Costs (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Deferred Policy Acquisition Costs Disclosures [Abstract] | |
Deferred Policy Acquisition Costs | The following table presents the amounts of policy acquisition costs deferred and amortized for the three and nine months ended September 30, 2017 and 2016 : Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 (in thousands) Balance, beginning of period $ 11,578 $ 5,515 $ 10,150 $ (1,696 ) Policy acquisition costs deferred: Direct commissions 8,024 7,119 24,529 20,967 Ceding commissions (2,519 ) (4,918 ) (7,502 ) (7,122 ) Other underwriting and policy acquisition costs 713 830 2,230 2,256 Policy acquisition costs deferred 6,218 3,031 19,257 16,101 Amortization of net policy acquisition costs (6,071 ) (2,988 ) (17,682 ) (8,847 ) Balance, end of period $ 11,725 $ 5,558 $ 11,725 $ 5,558 |
Underwriting, Acquisition and22
Underwriting, Acquisition and Insurance Expenses (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Underwriting, Acquisition and Insurance Expenses [Abstract] | |
Underwriting, acquisition and insurance expenses | Underwriting, acquisition and insurance expenses for the three and nine months ended September 30, 2017 and 2016 consist of the following: Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 (in thousands) Underwriting, acquisition and insurance expenses incurred: Direct commissions $ 8,001 $ 6,839 $ 22,694 $ 19,913 Ceding commissions (2,479 ) (6,473 ) (7,291 ) (17,099 ) Other operating expenses 5,467 5,936 17,372 16,217 Total $ 10,989 $ 6,302 $ 32,775 $ 19,031 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | The following represents a reconciliation of the numerator and denominator of the basic and diluted earnings per share computations contained in the consolidated financial statements: Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 (in thousands, except per share data) Earnings allocable to common stockholders $ 4,201 $ 4,911 $ 18,977 $ 4,911 Earnings allocable to Class A stockholders $ — $ 2,716 $ — $ 13,625 Earnings allocable to Class B stockholders $ — $ 355 $ — $ 760 Basic earnings per share: Common stock $ 0.20 $ 0.24 $ 0.90 $ 0.24 Class A common stock $ — $ 0.19 $ — $ 0.98 Class B common stock $ — $ 0.21 $ — $ 0.48 Diluted earnings per share: Common stock $ 0.20 $ 0.24 $ 0.88 $ 0.24 Class A common stock $ — $ 0.19 $ — $ 0.98 Class B common stock $ — $ 0.20 $ — $ 0.46 Basic weighted average shares outstanding: Common stock 20,995 20,656 20,978 20,656 Class A common stock — 14,111 — 13,844 Class B common stock — 1,682 — 1,574 Dilutive effect of shares issued under stock compensation arrangements: Common stock - stock options 525 85 483 85 Class B common stock - unvested restricted stock grants — 136 — 70 Diluted weighted average shares outstanding: Common stock 21,520 20,741 21,461 20,741 Class A common stock — 14,111 — 13,844 Class B common stock — 1,818 — 1,644 |
Reserves for Unpaid Losses an24
Reserves for Unpaid Losses and Loss Adjustment Expenses (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Liability for Unpaid Claims and Claims Adjustment Expense, Activity in Liability [Abstract] | |
Schedule of Unpaid Losses and Loss Adjustment Expenses | The following table presents a reconciliation of consolidated beginning and ending reserves for unpaid losses and loss adjustment expenses: September 30, 2017 2016 (in thousands) Net reserves for unpaid losses and loss adjustment expenses, beginning of year $ 194,602 $ 124,126 Commutation of MLQS 27,929 24,296 Adjusted net reserves for losses and loss adjustment expenses, beginning of year 222,531 148,422 Incurred losses and loss adjustment expenses: Current year 87,365 60,392 Prior years (11,831 ) (8,866 ) Total net losses and loss adjustment expenses incurred 75,534 51,526 Payments: Current year 4,317 2,260 Prior years 28,763 21,693 Total payments 33,080 23,953 Net reserves for unpaid losses and loss adjustment expenses, end of period 264,985 175,995 Reinsurance recoverable on unpaid losses 45,949 77,463 Gross reserves for unpaid losses and loss adjustment expenses, end of period $ 310,934 $ 253,458 |
Reinsurance (Tables)
Reinsurance (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Reinsurance Disclosures [Abstract] | |
Effects of Reinsurance | The following table summarizes the effect of reinsurance on premiums written and earned for the three and nine months ended September 30, 2017 and 2016 : Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 (in thousands) Written: Direct $ 55,633 $ 47,823 $ 166,248 $ 140,974 Assumed — — — 38 Ceded (8,562 ) (14,177 ) (25,242 ) (23,910 ) Net written $ 47,071 $ 33,646 $ 141,006 $ 117,102 Earned: Direct $ 53,527 $ 46,418 $ 153,293 $ 134,405 Assumed — 10 — 44 Ceded (8,497 ) (13,454 ) (24,778 ) (39,095 ) Net earned $ 45,030 $ 32,974 $ 128,515 $ 95,354 |
Other Comprehensive Income (Tab
Other Comprehensive Income (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Comprehensive Income (Loss) | The following table summarizes the components of other comprehensive income for the three and nine months ended September 30, 2017 and 2016 : Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 (in thousands) Unrealized gains arising during the period, before income taxes $ 2,552 $ (2 ) $ 7,539 $ 8,077 Income taxes (893 ) 1 (2,638 ) (2,826 ) Unrealized gains arising during the period, net of income taxes 1,659 (1 ) 4,901 5,251 Less reclassification adjustment: Net realized investment gains 31 — 23 361 Income taxes (11 ) — (8 ) (126 ) Reclassification adjustment included in net income 20 — 15 235 Other comprehensive income $ 1,639 $ (1 ) $ 4,886 $ 5,016 |
Investments Investments (Availa
Investments Investments (Available for Sale) (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 449,666 | $ 427,876 |
Gross Unrealized Holding Gains | 11,612 | 6,880 |
Gross Unrealized Holding Losses | (2,375) | (5,159) |
Estimated Fair Value | 458,903 | 429,597 |
Total fixed maturities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 413,314 | 413,526 |
Gross Unrealized Holding Gains | 4,877 | 2,854 |
Gross Unrealized Holding Losses | (2,298) | (5,157) |
Estimated Fair Value | 415,893 | 411,223 |
U.S. Treasury securities and obligations of U.S. government agencies | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 9,108 | 12,106 |
Gross Unrealized Holding Gains | 5 | 8 |
Gross Unrealized Holding Losses | (16) | (16) |
Estimated Fair Value | 9,097 | 12,098 |
Obligations of states, municipalities and political subdivisions | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 157,589 | 124,728 |
Gross Unrealized Holding Gains | 3,252 | 1,470 |
Gross Unrealized Holding Losses | (941) | (2,960) |
Estimated Fair Value | 159,900 | 123,238 |
Corporate and other securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 79,978 | 118,473 |
Gross Unrealized Holding Gains | 649 | 550 |
Gross Unrealized Holding Losses | (78) | (233) |
Estimated Fair Value | 80,549 | 118,790 |
Asset-backed securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 81,491 | 73,317 |
Gross Unrealized Holding Gains | 464 | 241 |
Gross Unrealized Holding Losses | (159) | (264) |
Estimated Fair Value | 81,796 | 73,294 |
Residential mortgage-backed securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 85,148 | 84,902 |
Gross Unrealized Holding Gains | 507 | 585 |
Gross Unrealized Holding Losses | (1,104) | (1,684) |
Estimated Fair Value | 84,551 | 83,803 |
Total equity securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 36,352 | |
Gross Unrealized Holding Gains | 6,735 | |
Gross Unrealized Holding Losses | (77) | |
Estimated Fair Value | 43,010 | |
Exchange traded funds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 23,819 | 14,350 |
Gross Unrealized Holding Gains | 6,716 | 4,026 |
Gross Unrealized Holding Losses | 0 | (2) |
Estimated Fair Value | 30,535 | $ 18,374 |
Nonredeemable preferred stock | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 12,533 | |
Gross Unrealized Holding Gains | 19 | |
Gross Unrealized Holding Losses | (77) | |
Estimated Fair Value | $ 12,475 |
Investments Available-for-Sale
Investments Available-for-Sale Securities in a Loss Position (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 Months, Estimated Fair Value | $ 167,288 | $ 210,558 |
Gross unrealized holding losses, less than 12 months | (1,818) | (4,758) |
12 Months or Longer, Estimated Fair Value | 31,304 | 29,522 |
12 Months or Longer, Gross Unrealized Holding Losses | (557) | (401) |
Total Estimated Fair Value | 198,592 | 240,080 |
Total Gross Unrealized Holding Losses | (2,375) | (5,159) |
Total fixed maturities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 Months, Estimated Fair Value | 159,160 | 210,170 |
Gross unrealized holding losses, less than 12 months | (1,741) | (4,756) |
12 Months or Longer, Estimated Fair Value | 31,304 | 29,522 |
12 Months or Longer, Gross Unrealized Holding Losses | (557) | (401) |
Total Estimated Fair Value | 190,464 | 239,692 |
Total Gross Unrealized Holding Losses | (2,298) | (5,157) |
U.S. Treasury securities and obligations of U.S. government agencies | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 Months, Estimated Fair Value | 8,982 | 8,980 |
Gross unrealized holding losses, less than 12 months | (16) | (16) |
12 Months or Longer, Estimated Fair Value | 0 | 0 |
12 Months or Longer, Gross Unrealized Holding Losses | 0 | 0 |
Total Estimated Fair Value | 8,982 | 8,980 |
Total Gross Unrealized Holding Losses | (16) | (16) |
Obligations of states, municipalities and political subdivisions | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 Months, Estimated Fair Value | 54,254 | 70,727 |
Gross unrealized holding losses, less than 12 months | (708) | (2,960) |
12 Months or Longer, Estimated Fair Value | 9,862 | 0 |
12 Months or Longer, Gross Unrealized Holding Losses | (233) | 0 |
Total Estimated Fair Value | 64,116 | 70,727 |
Total Gross Unrealized Holding Losses | (941) | (2,960) |
Corporate and other securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 Months, Estimated Fair Value | 22,365 | 50,274 |
Gross unrealized holding losses, less than 12 months | (66) | (145) |
12 Months or Longer, Estimated Fair Value | 8,235 | 12,375 |
12 Months or Longer, Gross Unrealized Holding Losses | (12) | (88) |
Total Estimated Fair Value | 30,600 | 62,649 |
Total Gross Unrealized Holding Losses | (78) | (233) |
Asset-backed securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 Months, Estimated Fair Value | 13,949 | 14,750 |
Gross unrealized holding losses, less than 12 months | (108) | (232) |
12 Months or Longer, Estimated Fair Value | 3,381 | 9,961 |
12 Months or Longer, Gross Unrealized Holding Losses | (51) | (32) |
Total Estimated Fair Value | 17,330 | 24,711 |
Total Gross Unrealized Holding Losses | (159) | (264) |
Residential mortgage-backed securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 Months, Estimated Fair Value | 59,610 | 65,439 |
Gross unrealized holding losses, less than 12 months | (843) | (1,403) |
12 Months or Longer, Estimated Fair Value | 9,826 | 7,186 |
12 Months or Longer, Gross Unrealized Holding Losses | (261) | (281) |
Total Estimated Fair Value | 69,436 | 72,625 |
Total Gross Unrealized Holding Losses | (1,104) | (1,684) |
Total equity securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 Months, Estimated Fair Value | 8,128 | |
Gross unrealized holding losses, less than 12 months | (77) | |
12 Months or Longer, Estimated Fair Value | 0 | |
12 Months or Longer, Gross Unrealized Holding Losses | 0 | |
Total Estimated Fair Value | 8,128 | |
Total Gross Unrealized Holding Losses | (77) | |
Exchange traded funds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 Months, Estimated Fair Value | 388 | |
Gross unrealized holding losses, less than 12 months | (2) | |
12 Months or Longer, Estimated Fair Value | 0 | |
12 Months or Longer, Gross Unrealized Holding Losses | 0 | |
Total Estimated Fair Value | 388 | |
Total Gross Unrealized Holding Losses | $ (2) | |
Nonredeemable preferred stock | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 Months, Estimated Fair Value | 8,128 | |
Gross unrealized holding losses, less than 12 months | (77) | |
12 Months or Longer, Estimated Fair Value | 0 | |
12 Months or Longer, Gross Unrealized Holding Losses | 0 | |
Total Estimated Fair Value | 8,128 | |
Total Gross Unrealized Holding Losses | $ (77) |
Investments Available-for-Sal29
Investments Available-for-Sale Securities in a Loss Position Narrative (Details) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2017USD ($)Rate | Dec. 31, 2016USD ($)Rate | |
Schedule of Available-for-sale Securities [Line Items] | ||
Total estimated fair value | $ 198,592 | $ 240,080 |
Total gross unrealized holding losses | 2,375 | 5,159 |
Gross unrealized holding losses, less than 12 months | 1,818 | 4,758 |
Other-than- temporary impairment losses | $ 0 | |
Fixed Maturities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Number of available-for-sale securities in unrealized loss positions | 188 | |
Total estimated fair value | $ 190,500 | |
Total gross unrealized holding losses | $ 2,300 | |
Number of available-for-sale securities in unrealized loss positions, greater than one year | 40 | |
Available-for-sale securities, percentage of securities with ratings of A minus or better | Rate | 91.00% | |
Other-than- temporary impairment losses | $ 0 | |
Nonredeemable preferred stock | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Number of available-for-sale securities in unrealized loss positions | 8 | |
Total estimated fair value | $ 8,128 | |
Total gross unrealized holding losses | 77 | |
Gross unrealized holding losses, less than 12 months | 77 | |
Fixed maturities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Number of available-for-sale securities in unrealized loss positions | 231 | |
Total estimated fair value | 190,464 | $ 239,692 |
Total gross unrealized holding losses | 2,298 | $ 5,157 |
Number of available-for-sale securities in unrealized loss positions, greater than one year | 24 | |
Available-for-sale securities, percentage of securities with ratings of A minus or better | Rate | 92.60% | |
Gross unrealized holding losses, less than 12 months | $ 1,741 | $ 4,756 |
Exchange traded funds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total estimated fair value | 388 | |
Total gross unrealized holding losses | 2 | |
Gross unrealized holding losses, less than 12 months | 2 | |
Other-than- temporary impairment losses | $ 300 |
Investments Contractual Maturit
Investments Contractual Maturities of Available-for-Sale Fixed Maturity Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Amortized Cost | ||
Due in one year or less, Amortized Cost | $ 51,551 | |
Due after one year through five years, Amortized Cost | 37,287 | |
Due after five years through ten years, Amortized Cost | 27,275 | |
Due after ten years, Amortized Cost | 130,562 | |
Total fixed maturities, Amortized Cost | 413,314 | $ 413,526 |
Estimated Fair Value | ||
Due in one year or less, Estimated Fair Value | 51,560 | |
Due after one year through five years, Estimated Fair Value | 37,819 | |
Due after five years through ten years, Estimated Fair Value | 28,385 | |
Due after ten years, Estimated Fair Value | 131,782 | |
Total fixed maturities | 415,893 | $ 411,223 |
Asset-backed securities | ||
Amortized Cost | ||
Without single maturity date, Amortized Cost | 81,491 | |
Estimated Fair Value | ||
Without single maturity date, Estimated Fair Value | 81,796 | |
Residential mortgage-backed securities | ||
Amortized Cost | ||
Without single maturity date, Amortized Cost | 85,148 | |
Estimated Fair Value | ||
Without single maturity date, Estimated Fair Value | $ 84,551 |
Investments Net Investment Inco
Investments Net Investment Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Components of Net Investment Income [Abstract] | ||||
Taxable bonds | $ 1,539 | $ 1,606 | $ 4,584 | $ 4,519 |
Municipal bonds, tax exempt | 990 | 384 | 2,602 | 1,165 |
Cash, cash equivalents, and short-term investments | 206 | 32 | 460 | 52 |
Dividends on equity securities | 287 | 101 | 582 | 303 |
Gross investment income | 3,022 | 2,123 | 8,228 | 6,039 |
Investment expenses | (257) | (229) | (745) | (650) |
Net investment income | $ 2,765 | $ 1,894 | $ 7,483 | $ 5,389 |
Investments Realized Gains (Los
Investments Realized Gains (Losses) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Realized Gains [Abstract] | ||||
Sales of fixed maturities | $ 44 | $ 0 | $ 68 | $ 410 |
Sales of short-term and other | 0 | 0 | 0 | 1 |
Total realized gains | 44 | 0 | 68 | 411 |
Realized Losses [Abstract] | ||||
Sales of fixed maturities | 0 | 0 | (32) | (28) |
Total realized losses | 0 | 0 | (32) | (28) |
Net realized investment gains | $ 44 | $ 0 | $ 36 | $ 383 |
Investments Unrealized Gains (L
Investments Unrealized Gains (Losses) on Investments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Schedule of Available-for-sale Securities [Line Items] | ||||
Change in net unrealized gains | $ 2,521 | $ (1) | $ 7,516 | $ 7,716 |
Fixed maturities | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Change in net unrealized gains | 1,385 | (545) | 4,882 | 6,471 |
Equity securities | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Change in net unrealized gains | $ 1,136 | $ 544 | $ 2,634 | $ 1,245 |
Investments Investment Narrativ
Investments Investment Narrative (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Investments, Debt and Equity Securities [Abstract] | ||
Bonds on deposits with state regulatory authorities | $ 7.1 | $ 7 |
Payable for investments purchased | $ 8.5 | $ 0.6 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) $ in Thousands | 3 Months Ended | ||
Jun. 30, 2017USD ($) | Sep. 30, 2017USD ($) | Dec. 31, 2016USD ($) | |
Fair Value of Investments Measured on Recurring Basis [Line Items] | |||
Fair value | $ 458,903 | $ 429,597 | |
Transfers from Level 1 to Level 2 | 0 | ||
Transfers from Level 2 to Level 1 | 0 | ||
Assets measured at fair value on a nonrecurring basis | 0 | 0 | |
Liabilities measured at fair value on a nonrecurring basis | 0 | 0 | |
Fixed maturities | |||
Fair Value of Investments Measured on Recurring Basis [Line Items] | |||
Fair value | 415,893 | 411,223 | |
U.S. Treasury securities and obligations of U.S. government agencies | |||
Fair Value of Investments Measured on Recurring Basis [Line Items] | |||
Fair value | 9,097 | 12,098 | |
Obligations of states, municipalities and political subdivisions | |||
Fair Value of Investments Measured on Recurring Basis [Line Items] | |||
Fair value | 159,900 | 123,238 | |
Corporate and other securities | |||
Fair Value of Investments Measured on Recurring Basis [Line Items] | |||
Fair value | 80,549 | 118,790 | |
Asset-backed securities | |||
Fair Value of Investments Measured on Recurring Basis [Line Items] | |||
Fair value | 81,796 | 73,294 | |
Number of Level 3 securities purchased | 1 | ||
Purchase amount of level 3 security | $ 2,500 | ||
Residential mortgage-backed securities | |||
Fair Value of Investments Measured on Recurring Basis [Line Items] | |||
Fair value | 84,551 | 83,803 | |
Equity securities | |||
Fair Value of Investments Measured on Recurring Basis [Line Items] | |||
Fair value | 43,010 | ||
Exchange traded funds | |||
Fair Value of Investments Measured on Recurring Basis [Line Items] | |||
Fair value | 30,535 | 18,374 | |
Nonredeemable preferred stock | |||
Fair Value of Investments Measured on Recurring Basis [Line Items] | |||
Fair value | 12,475 | ||
Recurring | |||
Fair Value of Investments Measured on Recurring Basis [Line Items] | |||
Fair value | 458,903 | 429,597 | |
Recurring | Level 1 | |||
Fair Value of Investments Measured on Recurring Basis [Line Items] | |||
Fair value | 39,632 | 30,472 | |
Recurring | Level 2 | |||
Fair Value of Investments Measured on Recurring Basis [Line Items] | |||
Fair value | 419,271 | 399,125 | |
Recurring | Level 3 | |||
Fair Value of Investments Measured on Recurring Basis [Line Items] | |||
Fair value | 0 | 0 | |
Recurring | Fixed maturities | |||
Fair Value of Investments Measured on Recurring Basis [Line Items] | |||
Fair value | 415,893 | 411,223 | |
Recurring | Fixed maturities | Level 1 | |||
Fair Value of Investments Measured on Recurring Basis [Line Items] | |||
Fair value | 9,097 | 12,098 | |
Recurring | Fixed maturities | Level 2 | |||
Fair Value of Investments Measured on Recurring Basis [Line Items] | |||
Fair value | 406,796 | 399,125 | |
Recurring | Fixed maturities | Level 3 | |||
Fair Value of Investments Measured on Recurring Basis [Line Items] | |||
Fair value | 0 | 0 | |
Recurring | U.S. Treasury securities and obligations of U.S. government agencies | |||
Fair Value of Investments Measured on Recurring Basis [Line Items] | |||
Fair value | 9,097 | 12,098 | |
Recurring | U.S. Treasury securities and obligations of U.S. government agencies | Level 1 | |||
Fair Value of Investments Measured on Recurring Basis [Line Items] | |||
Fair value | 9,097 | 12,098 | |
Recurring | U.S. Treasury securities and obligations of U.S. government agencies | Level 2 | |||
Fair Value of Investments Measured on Recurring Basis [Line Items] | |||
Fair value | 0 | 0 | |
Recurring | U.S. Treasury securities and obligations of U.S. government agencies | Level 3 | |||
Fair Value of Investments Measured on Recurring Basis [Line Items] | |||
Fair value | 0 | 0 | |
Recurring | Obligations of states, municipalities and political subdivisions | |||
Fair Value of Investments Measured on Recurring Basis [Line Items] | |||
Fair value | 159,900 | 123,238 | |
Recurring | Obligations of states, municipalities and political subdivisions | Level 1 | |||
Fair Value of Investments Measured on Recurring Basis [Line Items] | |||
Fair value | 0 | 0 | |
Recurring | Obligations of states, municipalities and political subdivisions | Level 2 | |||
Fair Value of Investments Measured on Recurring Basis [Line Items] | |||
Fair value | 159,900 | 123,238 | |
Recurring | Obligations of states, municipalities and political subdivisions | Level 3 | |||
Fair Value of Investments Measured on Recurring Basis [Line Items] | |||
Fair value | 0 | 0 | |
Recurring | Corporate and other securities | |||
Fair Value of Investments Measured on Recurring Basis [Line Items] | |||
Fair value | 80,549 | 118,790 | |
Recurring | Corporate and other securities | Level 1 | |||
Fair Value of Investments Measured on Recurring Basis [Line Items] | |||
Fair value | 0 | 0 | |
Recurring | Corporate and other securities | Level 2 | |||
Fair Value of Investments Measured on Recurring Basis [Line Items] | |||
Fair value | 80,549 | 118,790 | |
Recurring | Corporate and other securities | Level 3 | |||
Fair Value of Investments Measured on Recurring Basis [Line Items] | |||
Fair value | 0 | 0 | |
Recurring | Asset-backed securities | |||
Fair Value of Investments Measured on Recurring Basis [Line Items] | |||
Fair value | 81,796 | 73,294 | |
Recurring | Asset-backed securities | Level 1 | |||
Fair Value of Investments Measured on Recurring Basis [Line Items] | |||
Fair value | 0 | 0 | |
Recurring | Asset-backed securities | Level 2 | |||
Fair Value of Investments Measured on Recurring Basis [Line Items] | |||
Fair value | 81,796 | 73,294 | |
Recurring | Asset-backed securities | Level 3 | |||
Fair Value of Investments Measured on Recurring Basis [Line Items] | |||
Fair value | 0 | 0 | |
Recurring | Residential mortgage-backed securities | |||
Fair Value of Investments Measured on Recurring Basis [Line Items] | |||
Fair value | 84,551 | 83,803 | |
Recurring | Residential mortgage-backed securities | Level 1 | |||
Fair Value of Investments Measured on Recurring Basis [Line Items] | |||
Fair value | 0 | 0 | |
Recurring | Residential mortgage-backed securities | Level 2 | |||
Fair Value of Investments Measured on Recurring Basis [Line Items] | |||
Fair value | 84,551 | 83,803 | |
Recurring | Residential mortgage-backed securities | Level 3 | |||
Fair Value of Investments Measured on Recurring Basis [Line Items] | |||
Fair value | 0 | 0 | |
Recurring | Equity securities | |||
Fair Value of Investments Measured on Recurring Basis [Line Items] | |||
Fair value | 43,010 | 18,374 | |
Recurring | Equity securities | Level 1 | |||
Fair Value of Investments Measured on Recurring Basis [Line Items] | |||
Fair value | 30,535 | 18,374 | |
Recurring | Equity securities | Level 2 | |||
Fair Value of Investments Measured on Recurring Basis [Line Items] | |||
Fair value | 12,475 | 0 | |
Recurring | Equity securities | Level 3 | |||
Fair Value of Investments Measured on Recurring Basis [Line Items] | |||
Fair value | 0 | 0 | |
Recurring | Exchange traded funds | |||
Fair Value of Investments Measured on Recurring Basis [Line Items] | |||
Fair value | 30,535 | 18,374 | |
Recurring | Exchange traded funds | Level 1 | |||
Fair Value of Investments Measured on Recurring Basis [Line Items] | |||
Fair value | 30,535 | 18,374 | |
Recurring | Exchange traded funds | Level 2 | |||
Fair Value of Investments Measured on Recurring Basis [Line Items] | |||
Fair value | 0 | 0 | |
Recurring | Exchange traded funds | Level 3 | |||
Fair Value of Investments Measured on Recurring Basis [Line Items] | |||
Fair value | 0 | 0 | |
Recurring | Nonredeemable preferred stock | |||
Fair Value of Investments Measured on Recurring Basis [Line Items] | |||
Fair value | 12,475 | 0 | |
Recurring | Nonredeemable preferred stock | Level 1 | |||
Fair Value of Investments Measured on Recurring Basis [Line Items] | |||
Fair value | 0 | 0 | |
Recurring | Nonredeemable preferred stock | Level 2 | |||
Fair Value of Investments Measured on Recurring Basis [Line Items] | |||
Fair value | 12,475 | 0 | |
Recurring | Nonredeemable preferred stock | Level 3 | |||
Fair Value of Investments Measured on Recurring Basis [Line Items] | |||
Fair value | $ 0 | $ 0 |
Deferred Policy Acquisition C36
Deferred Policy Acquisition Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | ||||
Balance, beginning of period | $ (1,696) | |||
Balance, beginning of period | $ 11,578 | $ 5,515 | $ 10,150 | |
Policy acquisition costs deferred: | ||||
Direct commissions deferred | 8,024 | 7,119 | 24,529 | 20,967 |
Ceding commissions deferred | (2,519) | (4,918) | (7,502) | (7,122) |
Other underwriting and policy acquisition costs | 713 | 830 | 2,230 | 2,256 |
Policy acquisition costs deferred | 6,218 | 3,031 | 19,257 | 16,101 |
Amortization of net policy acquisition costs | (6,071) | (2,988) | (17,682) | (8,847) |
Balance, end of period | $ 11,725 | $ 5,558 | $ 11,725 | $ 5,558 |
Underwriting, Acquisition and37
Underwriting, Acquisition and Insurance Expenses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Underwriting, Acquisition and Insurance Expenses [Abstract] | ||||
Gross commissions | $ 8,001 | $ 6,839 | $ 22,694 | $ 19,913 |
Ceding commissions | (2,479) | (6,473) | (7,291) | (17,099) |
Other operating expenses | 5,467 | 5,936 | 17,372 | 16,217 |
Underwriting, acquisition, and insurance expenses | 10,989 | 6,302 | 32,775 | 19,031 |
Salaries, bonuses and employee benefits | $ 4,200 | $ 5,100 | $ 13,700 | $ 13,900 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Earnings Per Share [Line Items] | ||||
Earnings allocable to common stockholders | $ 4,201 | $ 7,982 | $ 18,977 | $ 19,296 |
Earnings Per Share, Basic [Abstract] | ||||
Earnings per share - basic | $ 0.20 | $ 0.24 | $ 0.90 | $ 0.24 |
Earnings Per Share, Diluted [Abstract] | ||||
Earnings per share - diluted | $ 0.20 | $ 0.24 | $ 0.88 | $ 0.24 |
Weighted Average Number of Shares Outstanding, Basic [Abstract] | ||||
Weighted average shares outstanding - basic | 20,995 | 20,656 | 20,978 | 20,656 |
Weighted Average Number of Shares Outstanding, Diluted [Abstract] | ||||
Weighted average shares outstanding - diluted | 21,520 | 20,741 | 21,461 | 20,741 |
Common Stock [Member] | ||||
Earnings Per Share [Line Items] | ||||
Earnings allocable to common stockholders | $ 4,911 | $ 4,911 | ||
Class A Common Stock [Member] | ||||
Earnings Per Share [Line Items] | ||||
Earnings allocable to common stockholders | $ 0 | $ 0 | ||
Earnings allocable | $ 2,716 | $ 13,625 | ||
Earnings Per Share, Basic [Abstract] | ||||
Earnings per share - basic | $ 0 | $ 0.19 | $ 0 | $ 0.98 |
Earnings Per Share, Diluted [Abstract] | ||||
Earnings per share - diluted | $ 0 | $ 0.19 | $ 0 | $ 0.98 |
Weighted Average Number of Shares Outstanding, Basic [Abstract] | ||||
Weighted average shares outstanding - basic | 0 | 14,111 | 0 | 13,844 |
Weighted Average Number of Shares Outstanding, Diluted [Abstract] | ||||
Weighted average shares outstanding - diluted | 0 | 14,111 | 0 | 13,844 |
Class B Common Stock [Member] | ||||
Earnings Per Share [Line Items] | ||||
Earnings allocable to common stockholders | $ 0 | $ 0 | ||
Earnings allocable | $ 355 | $ 760 | ||
Earnings Per Share, Basic [Abstract] | ||||
Earnings per share - basic | $ 0 | $ 0.21 | $ 0 | $ 0.48 |
Earnings Per Share, Diluted [Abstract] | ||||
Earnings per share - diluted | $ 0 | $ 0.20 | $ 0 | $ 0.46 |
Weighted Average Number of Shares Outstanding, Basic [Abstract] | ||||
Weighted average shares outstanding - basic | 0 | 1,682 | 0 | 1,574 |
Weighted Average Number of Shares Outstanding, Diluted [Abstract] | ||||
Weighted average shares outstanding - diluted | 0 | 1,818 | 0 | 1,644 |
Stock option [Member] | ||||
Incremental Weighted Average Shares Attributable to Dilutive Effect [Abstract] | ||||
Dilutive effect of shares issued under stock compensation arrangements | 525 | 85 | 483 | 85 |
Restricted stock [Member] | Class B Common Stock [Member] | ||||
Incremental Weighted Average Shares Attributable to Dilutive Effect [Abstract] | ||||
Dilutive effect of shares issued under stock compensation arrangements | 0 | 136 | 0 | 70 |
Earnings Per Share Narrative (D
Earnings Per Share Narrative (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Class A Common Stock [Member] | ||||
Class of Stock [Line Items] | ||||
Common stock, Dividend rate | 12.00% | |||
Residual Proceeds | 75.00% | 75.00% | ||
Antidilutive securities | 0 | 0 | ||
Class B Common Stock [Member] | ||||
Class of Stock [Line Items] | ||||
Residual Proceeds | 25.00% | 25.00% | ||
Restricted stock [Member] | Class B Common Stock [Member] | ||||
Class of Stock [Line Items] | ||||
Antidilutive securities | 0 | 0 | ||
Stock option [Member] | ||||
Class of Stock [Line Items] | ||||
Antidilutive securities | 0 | 0 |
Income taxes (Details)
Income taxes (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | ||||
Effective tax rate | 20.10% | 34.00% | 30.50% | 34.00% |
Reserves for Unpaid Losses an41
Reserves for Unpaid Losses and Loss Adjustment Expenses (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | ||
Net reserves for unpaid losses and loss adjustment expenses, beginning of year | $ 194,602 | $ 124,126 |
Commutations of MLQS | 27,929 | 24,296 |
Adjusted net reserves for losses and loss adjustment expenses, beginning of year | 222,531 | 148,422 |
Incurred losses and loss adjustment expenses: | ||
Current year | 87,365 | 60,392 |
Prior years | (11,831) | (8,866) |
Total net losses and loss adjustment expenses incurred | 75,534 | 51,526 |
Payments: | ||
Current year | 4,317 | 2,260 |
Prior years | 28,763 | 21,693 |
Total payments | 33,080 | 23,953 |
Net reserves for unpaid losses and loss adjustment expenses, end of period | 264,985 | 175,995 |
Reinsurance recoverable on unpaid losses | 45,949 | 77,463 |
Gross reserves for unpaid losses and loss adjustment expenses, end of period | $ 310,934 | $ 253,458 |
Reserves for Unpaid Losses an42
Reserves for Unpaid Losses and Loss Adjustment Expenses Reserves for Unpaid Losses and Loss Adjustment Expenses Narrative (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Claims Development [Line Items] | ||
Adverse (favorable) development on prior year loss reserves | $ (11,831) | $ (8,866) |
Accident Year 2016 [Member] | ||
Claims Development [Line Items] | ||
Adverse (favorable) development on prior year loss reserves | (8,600) | |
Accident Year 2015 [Member] | ||
Claims Development [Line Items] | ||
Adverse (favorable) development on prior year loss reserves | (4,800) | (4,800) |
Accident Year 2014 [Member] | ||
Claims Development [Line Items] | ||
Adverse (favorable) development on prior year loss reserves | (1,800) | $ (4,100) |
Accident Years 2011 to 2013 [Member] | ||
Claims Development [Line Items] | ||
Adverse (favorable) development on prior year loss reserves | $ 3,400 |
Reinsurance (Details)
Reinsurance (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Premiums Written, Net [Abstract] | |||||
Direct written premiums | $ 55,633 | $ 47,823 | $ 166,248 | $ 140,974 | |
Assumed written premiums | 0 | 0 | 0 | 38 | |
Ceded written premiums | (8,562) | (14,177) | (25,242) | (23,910) | |
Net written premiums | 47,071 | 33,646 | 141,006 | 117,102 | |
Premiums Earned, Net [Abstract] | |||||
Direct earned premiums | 53,527 | 46,418 | 153,293 | 134,405 | |
Assumed earned premiums | 0 | 10 | 0 | 44 | |
Ceded earned premiums | (8,497) | (13,454) | (24,778) | (39,095) | |
Net earned premiums | 45,030 | 32,974 | 128,515 | 95,354 | |
Ceded incurred losses and loss adjustment expenses | 6,900 | $ 3,100 | 8,700 | $ 10,900 | |
Reinsurance recoverables on paid losses | 500 | 500 | $ 100 | ||
Reinsurance recoverables on unpaid losses | $ 45,900 | $ 45,900 | $ 70,200 |
Reinsurance Multi-line Quota Sh
Reinsurance Multi-line Quota Share Reinsurance (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Jan. 01, 2017 | |
Multi Line Quota Share Treaty - 2015 [Member] | ||
Reinsurance Retention Policy [Line Items] | ||
Effect of commutation | $ 36.5 | |
Multi Line Quota Share Treaty - 2016 [Member] | ||
Reinsurance Retention Policy [Line Items] | ||
Provisional ceding commission rate | 41.00% | |
Reinsurance margin | 4.00% | |
Multi Line Quota Share Treaty - 2016 [Member] | Minimum [Member] | ||
Reinsurance Retention Policy [Line Items] | ||
Sliding scale commission | 25.00% | |
Multi Line Quota Share Treaty - 2016 [Member] | Maximum [Member] | ||
Reinsurance Retention Policy [Line Items] | ||
Sliding scale commission | 41.00% |
Other Comprehensive Income (Det
Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||
Unrealized gains arising during the period, before income taxes | $ 2,552 | $ (2) | $ 7,539 | $ 8,077 |
Income taxes | (893) | 1 | (2,638) | (2,826) |
Unrealized gains arising during the period, net of income tax | 1,659 | (1) | 4,901 | 5,251 |
Less reclassification adjustment [Abstract] | ||||
Net realized investment gains (losses) | 31 | 0 | 23 | 361 |
Income taxes | (11) | 0 | (8) | (126) |
Reclassification adjustment included in net income | 20 | 0 | 15 | 235 |
Other comprehensive income | $ 1,639 | $ (1) | $ 4,886 | $ 5,016 |