Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2018 | Apr. 30, 2018 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | EMC INSURANCE GROUP INC. | |
Entity Central Index Key | 356,130 | |
Current Fiscal Year End Date | --12-31 | |
Entity Well-known Seasoned Issuer | No | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 21,541,316 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2018 |
CONSOLIDATED BALANCE SHEETS (Un
CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Investments: | ||
Fixed maturity securities available-for-sale, at fair value (amortized cost $1,258,390 and $1,253,166) | $ 1,256,473 | $ 1,275,016 |
Equity investments, at fair value (cost $146,520 and $144,274) | 220,498 | |
Equity investments, at fair value (cost $146,520 and $144,274) | 228,115 | |
Equity investments, at alternative measurement of cost less impairments | 2,000 | 0 |
Other long-term investments | 17,212 | 13,648 |
Short-term investments | 21,664 | 23,613 |
Total investments | 1,517,847 | 1,540,392 |
Cash | 382 | 347 |
Reinsurance receivables due from affiliate | 31,276 | 31,650 |
Prepaid reinsurance premiums due from affiliate | 11,601 | 12,789 |
Deferred policy acquisition costs (affiliated $42,667 and $40,848) | 42,892 | 41,114 |
Prepaid pension and postretirement benefits due from affiliate | 20,593 | 20,683 |
Accrued investment income | 11,616 | 11,286 |
Amounts receivable under reverse repurchase agreements | 22,250 | 16,500 |
Accounts receivable | 906 | 1,604 |
Goodwill | 942 | 942 |
Other assets (affiliated $4,034 and $4,423) | 4,848 | 4,633 |
Total assets | 1,665,153 | 1,681,940 |
LIABILITIES | ||
Losses and settlement expenses (affiliated $732,840 and $726,413) | 737,055 | 732,612 |
Unearned premiums (affiliated $257,992 and $256,434) | 259,071 | 257,797 |
Other policyholders' funds (all affiliated) | 9,586 | 10,013 |
Surplus notes payable to affiliate | 25,000 | 25,000 |
Amounts due affiliate to settle inter-company transaction balances | 214 | 367 |
Pension benefits payable to affiliate | 3,953 | 4,185 |
Income taxes payable | 1,751 | 544 |
Deferred income taxes | 8,227 | 15,020 |
Other liabilities (affiliated $18,493 and $27,520) | 38,947 | 32,556 |
Total liabilities | 1,083,804 | 1,078,094 |
STOCKHOLDERS' EQUITY | ||
Common stock, $1 par value, authorized 30,000,000 shares; issued and outstanding, 21,519,498 shares in 2018 and 21,455,545 shares in 2017 | 21,519 | 21,455 |
Additional paid-in capital | 126,106 | 124,556 |
Accumulated other comprehensive income (loss) | (2,167) | 83,384 |
Retained earnings | 435,891 | 374,451 |
Total stockholders' equity | 581,349 | 603,846 |
Total liabilities and stockholders' equity | $ 1,665,153 | $ 1,681,940 |
CONSOLIDATED BALANCE SHEETS (U3
CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Investments: | ||
Fixed maturity securities available-for-sale, amortized cost | $ 1,258,390 | $ 1,253,166 |
Equity investments, cost | 146,520 | |
Equity investments, cost | 144,274 | |
Deferred policy acquisition costs from affiliates | 42,667 | 40,848 |
Affiliated other assets | 4,034 | 4,423 |
LIABILITIES | ||
Affiliated losses and settlement expenses | 732,840 | 726,413 |
Unearned premiums from affiliates | 257,992 | 256,434 |
Affiliated other liabilities | $ 18,493 | $ 27,520 |
STOCKHOLDERS' EQUITY | ||
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, shares authorized (in shares) | 30,000,000 | 30,000,000 |
Common stock, shares issued (in shares) | 21,519,498 | 21,455,545 |
Common stock, shares outstanding (in shares) | 21,519,498 | 21,455,545 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
REVENUES | ||
Premiums earned (affiliated $154,246 and $143,611) | $ 155,786 | $ 144,487 |
Net investment income | 11,371 | 11,007 |
Net realized investment gains (losses) and, beginning in 2018, change in unrealized investment gains on equity investments | (5,393) | (627) |
Other income (affiliated $1,581 and $1,009) | 1,615 | 870 |
Total revenues | 163,379 | 155,737 |
LOSSES AND EXPENSES | ||
Losses and settlement expenses (affiliated $110,570 and $94,771) | 110,628 | 96,285 |
Dividends to policyholders (all affiliated) | 2,120 | 2,722 |
Amortization of deferred policy acquisition costs (affiliated $26,917 and $26,595) | 27,292 | 26,811 |
Other underwriting expenses (affiliated $22,920 and $20,693) | 22,855 | 20,634 |
Interest expense (all affiliated) | 142 | 84 |
Other expenses (affiliated $498 and $467) | 870 | 761 |
Total losses and expenses | 163,907 | 147,297 |
Income (loss) before income tax expense (benefit) | (528) | 8,440 |
INCOME TAX EXPENSE (BENEFIT) | ||
Current | 1,206 | 2,046 |
Deferred | (1,658) | (410) |
Total income tax expense (benefit) | (452) | 1,636 |
Net income (loss) | $ (76) | $ 6,804 |
Net income (loss) per common share - basic and diluted | $ 0 | $ 0.32 |
Dividend per common share | $ 0.22 | $ 0.21 |
Average number of common shares outstanding - basic and diluted (in shares) | 21,501,897 | 21,254,430 |
CONSOLIDATED STATEMENTS OF INC5
CONSOLIDATED STATEMENTS OF INCOME (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
REVENUES | ||
Premiums earned, affiliated | $ 154,246 | $ 143,611 |
Other income, affiliated | 1,581 | 1,009 |
LOSSES AND EXPENSES | ||
Losses and settlement expenses, affiliated | 110,570 | 94,771 |
Amortization of deferred policy acquisition costs, affiliated | 26,917 | 26,595 |
Other underwriting expenses, affiliated | 22,920 | 20,693 |
Other expense, affiliated | $ 498 | $ 467 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Net income (loss) | $ (76) | $ 6,804 |
OTHER COMPREHENSIVE INCOME (LOSS) | ||
Unrealized holding gains (losses) on investment securities not reflected in net income, net of deferred income tax expense (benefit) of $(5,042) and $5,226 | (18,969) | 9,705 |
Reclassification adjustment for net realized investment (gains) losses included in net income (loss), net of income tax (expense) benefit of $51 and $(581) | 193 | (1,079) |
Reclassification adjustment for amounts amortized into net periodic pension and postretirement benefit income, net of deferred income tax expense of $(144) and $(147): | ||
Net actuarial loss | 81 | 239 |
Prior service credit | (622) | (511) |
Total reclassification adjustment associated with affiliate's pension and postretirement benefit plans | (541) | (272) |
Other comprehensive income (loss) | (19,317) | 8,354 |
Total comprehensive income (loss) | $ (19,393) | $ 15,158 |
CONSOLIDATED STATEMENTS OF COM7
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
OTHER COMPREHENSIVE INCOME (LOSS) | ||
Unrealized holding gains (losses) on investment securities, deferred income tax expense (benefit) | $ (5,042) | $ 5,226 |
Reclassification adjustment for net realized investment (gains) losses included in net income (loss), income tax (expense) benefit | 51 | (581) |
Reclassification adjustment for amounts amortized into net periodic pension and postretirement benefit cost (income), deferred income tax (expense) benefit | $ (144) | $ (147) |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Retained Earnings [Member] |
Balance at Dec. 31, 2016 | $ 553,342 | $ 21,223 | $ 119,054 | $ 46,081 | $ 366,984 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock through stock plans | 1,953 | 76 | 1,877 | ||
Repurchase of common stock | (1,758) | (64) | (1,694) | ||
Increase resulting from stock-based compensation expense | 7 | 7 | |||
Other comprehensive income (loss) | 8,354 | 8,354 | |||
Net income (loss) | 6,804 | 6,804 | |||
Dividends paid to public stockholders | (1,956) | (1,956) | |||
Dividends paid to affiliate | (2,472) | (2,472) | |||
Balance at Mar. 31, 2017 | 564,274 | 21,235 | 119,244 | 54,435 | 369,360 |
Balance at Dec. 31, 2017 | 603,846 | 21,455 | 124,556 | 83,384 | 374,451 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock through stock plans | 2,398 | 94 | 2,304 | ||
Repurchase of common stock | (802) | (30) | (772) | ||
Increase resulting from stock-based compensation expense | 18 | 18 | |||
Other comprehensive income (loss) | (19,317) | (19,317) | |||
Net income (loss) | (76) | (76) | |||
Dividends paid to public stockholders | (2,128) | (2,128) | |||
Dividends paid to affiliate | (2,590) | (2,590) | |||
Balance at Mar. 31, 2018 | 581,349 | $ 21,519 | $ 126,106 | (2,167) | 435,891 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Cumulative adjustment for adoption of financial instruments recognition and measurement changes | $ 0 | $ (66,234) | $ 66,234 |
CONSOLIDATED STATEMENT OF STOCK
CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Statement of Stockholders' Equity [Abstract] | ||
Dividends paid to public stockholders (per share) | $ 0.22 | $ 0.21 |
Dividends paid to affiliate (per share) | $ 0.22 | $ 0.21 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income (loss) | $ (76) | $ 6,804 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Losses and settlement expenses (affiliated $6,427 and $5,016) | 4,443 | 4,597 |
Unearned premiums (affiliated $1,558 and $2,021) | 1,274 | 1,595 |
Other policyholders' funds due to affiliate | (427) | 550 |
Amounts due to/from affiliate to settle inter-company transaction balances | (153) | (12,135) |
Net pension and postretirement benefits due from affiliate | (827) | (512) |
Reinsurance receivables due from affiliate | 374 | (171) |
Prepaid reinsurance premiums due from affiliate | 1,188 | (1,035) |
Commissions payable (affiliated $(7,893) and $(7,270)) | (7,817) | (7,270) |
Deferred policy acquisition costs (affiliated $(1,819) and $905) | (1,778) | 1,023 |
Accrued investment income | (330) | (1,081) |
Current income tax | 1,207 | 1,682 |
Deferred income tax | (1,658) | (410) |
Net realized investment gains (losses) and, beginning in 2018, change in unrealized investment gains on equity investments | 5,393 | 627 |
Other, net (affiliated $(727) and $(3,145)) | 2,644 | 1,997 |
Total adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities | 3,533 | (10,543) |
Net cash provided by (used in) operating activities | 3,457 | (3,739) |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Purchases of fixed maturity securities available-for-sale | (53,019) | (39,461) |
Disposals of fixed maturity securities available-for-sale | 51,447 | 41,013 |
Purchases of equity investments | (20,143) | |
Purchases of equity investments | (17,490) | |
Disposals of equity investments | 19,168 | |
Disposals of equity investments | 12,134 | |
Purchases of other long-term investments | (4,507) | (6,087) |
Disposals of other long-term investments | 2,305 | 365 |
Net (purchases) disposals of short-term investments | 1,949 | 14,140 |
Net receipts under reverse repurchase agreements | 2,500 | 3,500 |
Net cash (used in) provided by investing activities | (300) | 8,114 |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Issuance of common stock through affiliate’s stock plans | 2,398 | 1,953 |
Repurchase of common stock | (802) | (1,758) |
Dividends paid to stockholders (affiliated $(2,590) and $(2,472)) | (4,718) | (4,428) |
Net cash used in financing activities | (3,122) | (4,233) |
NET INCREASE IN CASH | 35 | 142 |
Cash at the beginning of the year | 347 | 307 |
Cash at the end of the quarter | $ 382 | $ 449 |
CONSOLIDATED STATEMENTS OF CA11
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Losses and settlement expenses, affiliated | $ 6,427 | $ 5,016 |
Unearned premiums, affiliated | 1,558 | 2,021 |
Commissions payable, affiliated | (7,893) | (7,270) |
Deferred policy acquisition costs, affiliated | (1,819) | 905 |
Other, net, affiliated | (727) | (3,145) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Dividends paid to stockholders, affiliated | $ (2,590) | $ (2,472) |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 3 Months Ended |
Mar. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION EMC Insurance Group Inc., a majority owned subsidiary of Employers Mutual Casualty Company (Employers Mutual), is an insurance holding company with operations in property and casualty insurance and reinsurance. The Company writes property and casualty insurance in both commercial and personal lines of insurance, with a focus on medium-sized commercial accounts. The term “Company” is used interchangeably to describe EMC Insurance Group Inc. (Parent Company only) and EMC Insurance Group Inc. and its subsidiaries. The accompanying unaudited consolidated financial statements have been prepared on the basis of U.S. generally accepted accounting principles (GAAP) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. The Company has evaluated all subsequent events through the date the financial statements were issued. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation of the interim financial statements have been included. The results of operations for the interim periods reported are not necessarily indicative of results to be expected for the year. The consolidated balance sheet at December 31, 2017 has been derived from the audited financial statements at that date, but does not include all of the information and notes required by GAAP for complete financial statements. In reading these financial statements, reference should be made to the Company’s 2017 Form 10-K or the 2017 Annual Report to Stockholders for more detailed footnote information. Accounting Pronouncements Adopted In January 2016, the Financial Accounting Standards Board (FASB) updated its guidance related to the Financial Instruments-Overall Subtopic 825-10 of the Accounting Standards Codification TM (Codification or ASC). The objective of this update is to enhance the reporting model for financial instruments to provide financial statement users with more decision-useful information. The major change in reporting from this update is a requirement that equity investments (excluding those accounted for under the equity method of accounting or those that are consolidated) be measured at fair value, with changes in fair value recognized in net income. All of the Company's common and preferred stock equity investments were already measured at fair value, as they were classified as available-for-sale with changes in fair value recognized in other comprehensive income (excludes those investments that were consolidated and those that were accounted for under the equity method of accounting). The Company adopted this guidance on January 1, 2018, recording a cumulative-effect adjustment that moved $66.2 million from accumulated other comprehensive income to retained earnings, which is the amount of net unrealized investment gains on available-for-sale equity securities as of December 31, 2017, net of deferred income taxes. A privately placed non-redeemable convertible preferred stock investment in a start-up technology company was determined to not have a readily determinable fair value. As such, the cost less impairment alternative measurement is being used for this investment in lieu of fair value. Management uses the equity method of accounting for certain investment company limited partnerships classified as other long-term investments in which the Company has minor ownership interests. In connection with the adoption of this new guidance, beginning January 1, 2018, the equity adjustments for these investments are being reported as realized investment gains and losses from other long-term investments, rather than net investment income. In March 2017, the FASB issued updated guidance in Compensation-Retirement Benefits Topic 715 of the ASC. The objective of this update is to improve the presentation of net periodic pension and postretirement benefit costs by disaggregating the components of these expenses (disclosing the service cost component separately from the other components) for income statement reporting, if a subtotal of income from operations is presented. Also included in this update is a prohibition against including components of the net periodic pension and postretirement benefit costs, other than the service cost component, in any capitalized assets. In conjunction with the adoption of this updated guidance, management elected to report all components of net periodic pension and postretirement benefit income, other than the service cost component, as other income in the consolidated statements of income. The service cost component continues to be reported in other underwriting expenses. This change in reporting was applied retrospectively for comparison purposes and did not impact net income/loss amounts reported for the first quarters of 2018 or 2017, as other income and other underwriting expenses increased by the same amount ( $1.9 million and $1.3 million , in the first quarters of 2018 and 2017, respectively). The prohibition against including net periodic pension and postretirement benefit costs, other than the service cost component, in capitalized assets was adopted prospectively on January 1, 2018. The impact of the exclusion of these costs from capitalized assets resulted in a negligible impact on the deferred policy acquisition cost asset calculation at March 31, 2018 compared to that which would have been calculated under previous guidance. |
TRANSACTIONS WITH AFFILIATES
TRANSACTIONS WITH AFFILIATES | 3 Months Ended |
Mar. 31, 2018 | |
Related Party Transactions [Abstract] | |
TRANSACTIONS WITH AFFILIATES | TRANSACTIONS WITH AFFILIATES An inter-company reinsurance program is in place between the Company's insurance subsidiaries in the property and casualty insurance segment and Employers Mutual. This reinsurance program is intended to reduce the volatility of the Company's quarterly results caused by excessive catastrophe and storm losses, and provide protection from both the frequency and severity of such losses. The reinsurance program consists of two semi-annual aggregate catastrophe excess of loss treaties. The first treaty is effective from January 1, 2018 through June 30, 2018, and has a retention of $22.0 million and a limit of $24.0 million . The total cost of this treaty is approximately $6.0 million . The second treaty is effective from July 1, 2018 through December 31, 2018, and has a retention of $15.0 million and a limit of $12.0 million . The total cost of this treaty is approximately $1.4 million . The terms of these treaties were the same in 2017, with the exception of the retention amount contained in the treaty covering the first half of the year, which was $20.0 million . Losses and settlement expenses ceded to Employers Mutual under the inter-company reinsurance program totaled $467,000 for the three months ended March 31, 2018, compared to $573,000 in 2017. All catastrophe and storm losses assumed by the property and casualty insurance subsidiaries (net of applicable reinsurance recoveries from external reinsurance protections purchased by the pool participants) are subject to the terms of these treaties, and there is no co-participation provision. An inter-company reinsurance program is also in place between the Company's reinsurance subsidiary and Employers Mutual. The reinsurance program consists of two treaties. The first is a per occurrence catastrophe excess of loss treaty with a retention of $10.0 million , a limit of $10.0 million , 20 percent co-participation, and no reinstatement. The total cost of this treaty is approximately $1.6 million . The second is an annual aggregate catastrophe excess of loss treaty with a retention of $20.0 million , a limit of $100.0 million , and 20 percent co-participation. The total cost of this treaty is approximately $3.6 million . Any losses recovered under the per occurrence treaty inure to the benefit of the aggregate treaty, and only catastrophic events with total losses greater than $500,000 are subject to the terms of the aggregate treaty. The terms of the program were the same in 2017 with the exception of the costs, which were $1.7 million for the per occurrence treaty and $3.2 million for the annual aggregate treaty. Losses and settlement expenses ceded to Employers Mutual under the inter-company reinsurance program totaled a negative $753,000 for the three months ended March 31, 2018, compared to $9,000 in 2017. The reinsurance subsidiary purchases additional reinsurance protection in peak exposure territories from external parties in which coverage is triggered when losses experienced by the insurance industry from a catastrophic event exceed a specified threshold. Any reinsurance recoveries received from external parties reduces the amount of losses ceded to Employers Mutual under the inter-company reinsurance program. No recoveries have been made from external parties in 2018 or 2017. |
REINSURANCE
REINSURANCE | 3 Months Ended |
Mar. 31, 2018 | |
Reinsurance Disclosures [Abstract] | |
REINSURANCE | REINSURANCE The effect of reinsurance on premiums written and earned, and losses and settlement expenses incurred, for the three months ended March 31, 2018 and 2017 is presented below. The classification of the assumed and ceded reinsurance amounts between affiliates and nonaffiliates is based on the participants in the underlying reinsurance agreements, and is intended to provide an understanding of the actual source of the reinsurance activities. This presentation differs from the classifications used in the consolidated financial statements, where all amounts flowing through the pooling and quota share agreements and inter-company reinsurance programs with Employers Mutual are reported as “affiliated” balances. Three months ended March 31, 2018 ($ in thousands) Property and Reinsurance Total Premiums written Direct $ 100,044 $ — $ 100,044 Assumed from nonaffiliates 1,018 41,121 42,139 Assumed from affiliates 130,201 — 130,201 Ceded to nonaffiliates (7,970 ) (2,005 ) (9,975 ) Ceded to affiliates (103,024 ) (1,313 ) (104,337 ) Net premiums written $ 120,269 $ 37,803 $ 158,072 Premiums earned Direct $ 95,745 $ — $ 95,745 Assumed from nonaffiliates 1,002 41,092 42,094 Assumed from affiliates 129,148 — 129,148 Ceded to nonaffiliates (8,538 ) (2,625 ) (11,163 ) Ceded to affiliates (98,725 ) (1,313 ) (100,038 ) Net premiums earned $ 118,632 $ 37,154 $ 155,786 Losses and settlement expenses incurred Direct $ 52,287 $ — $ 52,287 Assumed from nonaffiliates 992 26,415 27,407 Assumed from affiliates 85,967 358 86,325 Ceded to nonaffiliates (2,991 ) (399 ) (3,390 ) Ceded to affiliates (52,754 ) 753 (52,001 ) Net losses and settlement expenses incurred $ 83,501 $ 27,127 $ 110,628 Three months ended March 31, 2017 ($ in thousands) Property and Reinsurance Total Premiums written Direct $ 96,752 $ — $ 96,752 Assumed from nonaffiliates 919 33,505 34,424 Assumed from affiliates 124,800 — 124,800 Ceded to nonaffiliates (8,133 ) (2,024 ) (10,157 ) Ceded to affiliates (99,731 ) (1,213 ) (100,944 ) Net premiums written $ 114,607 $ 30,268 $ 144,875 Premiums earned Direct $ 95,898 $ — $ 95,898 Assumed from nonaffiliates 1,015 34,689 35,704 Assumed from affiliates 122,097 — 122,097 Ceded to nonaffiliates (6,484 ) (2,637 ) (9,121 ) Ceded to affiliates (98,878 ) (1,213 ) (100,091 ) Net premiums earned $ 113,648 $ 30,839 $ 144,487 Losses and settlement expenses incurred Direct $ 62,761 $ — $ 62,761 Assumed from nonaffiliates 752 21,240 21,992 Assumed from affiliates 76,742 364 77,106 Ceded to nonaffiliates (1,401 ) (830 ) (2,231 ) Ceded to affiliates (63,334 ) (9 ) (63,343 ) Net losses and settlement expenses incurred $ 75,520 $ 20,765 $ 96,285 Individual lines in the above tables are defined as follows: • “Direct” represents business produced by the property and casualty insurance subsidiaries. • “Assumed from nonaffiliates” for the property and casualty insurance subsidiaries represents their aggregate 30 percent pool participation percentage of involuntary business assumed by the pool participants pursuant to state law. For the reinsurance subsidiary, this line represents the reinsurance business assumed through the quota share agreement (including “fronting” activities initiated by Employers Mutual) and the business assumed outside the quota share agreement. • “Assumed from affiliates” for the property and casualty insurance subsidiaries represents their aggregate 30 percent pool participation percentage of all the pool members’ direct business. The amounts reported under the caption “Losses and settlement expenses incurred” also include claim-related services provided by Employers Mutual that are allocated to the property and casualty insurance subsidiaries and the reinsurance subsidiary. • “Ceded to nonaffiliates” for the property and casualty insurance subsidiaries represents their aggregate 30 percent pool participation percentage of 1) the amounts ceded to nonaffiliated reinsurance companies in accordance with the terms of the reinsurance agreements providing protection to the pool and each of its participants, and 2) the amounts ceded on a mandatory basis to state organizations in connection with various programs. For the reinsurance subsidiary, this line includes 1) reinsurance business that is ceded to other insurance companies in connection with “fronting” activities initiated by Employers Mutual, and 2) amounts ceded to purchase additional reinsurance protection in peak exposure territories from external parties. • “Ceded to affiliates” for the property and casualty insurance subsidiaries represents the cession of their direct business to Employers Mutual under the terms of the pooling agreement and amounts ceded to Employers Mutual under the terms of the inter-company reinsurance program. For the reinsurance subsidiary this line represents amounts ceded to Employers Mutual under the terms of the inter-company reinsurance program. |
LIABILITY FOR LOSSES AND SETTLE
LIABILITY FOR LOSSES AND SETTLEMENT EXPENSES | 3 Months Ended |
Mar. 31, 2018 | |
Liability for Future Policy Benefits and Unpaid Claims and Claims Adjustment Expense [Abstract] | |
LIABILITY FOR LOSSES AND SETTLEMENT EXPENSES | LIABILITY FOR LOSSES AND SETTLEMENT EXPENSES The following table sets forth a reconciliation of beginning and ending reserves for losses and settlement expenses of the Company. Amounts presented are on a net basis, with a reconciliation of beginning and ending reserves to the gross amounts presented in the consolidated financial statements. Three months ended March 31, ($ in thousands) 2018 2017 Gross reserves at beginning of year $ 732,612 $ 690,532 Re-valuation due to foreign currency exchange rates 525 (1,913 ) Less ceded reserves at beginning of year 30,923 20,664 Net reserves at beginning of year 701,164 671,781 Incurred losses and settlement expenses related to: Current year 116,204 111,189 Prior years (5,576 ) (14,904 ) Total incurred losses and settlement expenses 110,628 96,285 Paid losses and settlement expenses related to: Current year 24,262 22,923 Prior years 81,877 69,826 Total paid losses and settlement expenses 106,139 92,749 Net reserves at end of period 705,653 675,317 Plus ceded reserves at end of period 30,549 20,788 Re-valuation due to foreign currency exchange rates 853 (976 ) Gross reserves at end of period $ 737,055 $ 695,129 There is an inherent amount of uncertainty involved in the establishment of insurance liabilities. This uncertainty is greatest in the current and more recent accident years because a smaller percentage of the expected ultimate claims have been reported, adjusted and settled compared to more mature accident years. For this reason, carried reserves for these accident years reflect prudently conservative assumptions. As the carried reserves for these accident years run off, the overall expectation is that, more often than not, favorable development will occur. However, there is also the possibility that the ultimate settlement of liabilities associated with these accident years will show adverse development, and such adverse development could be substantial. Changes in reserve estimates are reflected in net income in the year such changes are recorded. Following is an analysis of the reserve development the Company experienced during the three months ended March 31, 2018 and 2017 . Care should be exercised when attempting to analyze the financial impact of the reported development amounts because, as noted above, the overall expectation is that, more often than not, favorable development will occur as the prior accident years’ reserves run off. 2018 Development For the property and casualty insurance segment, the March 31, 2018 estimate of loss and settlement expense reserves for accident years 2017 and prior decreased $2.1 million from the estimate at December 31, 2017 . This decrease represents 0.4 percent of the December 31, 2017 gross carried reserves and is primarily attributed to decreases in the ultimate loss ratios for several accident years, including 2017, due to reductions in expected ultimate frequency and/or severity in the workers' compensation line of business. The commercial auto liability of business experienced adverse development due to higher than expected severity in the 2017 accident year. For the reinsurance segment, the March 31, 2018 estimate of loss and settlement expense reserves for accident years 2017 and prior decreased $3.4 million from the estimate at December 31, 2017 . This decrease represents 1.5 percent of the December 31, 2017 gross carried reserves and is primarily attributed to lower ultimate loss estimates impacting accident years 2014-2017 for the property pro rata, catastrophe and per risk excess, and property-casualty global excess lines of business. The favorable development was partially offset by adverse development on casualty excess contracts for years 2007, 2012, 2014 and 2017, whose ultimates were increased in response to higher than expected reported losses. 2017 Development For the property and casualty insurance segment, the March 31, 2017 estimate of loss and settlement expense reserves for accident years 2016 and prior decreased $8.5 million from the estimate at December 31, 2016 . This decrease represented 1.7 percent of the December 31, 2016 gross carried reserves and was primarily attributed to reductions in prior year ultimate loss ratios for most lines of business except commercial auto liability. The other liability and workers' compensation lines of business were the largest contributors to favorable development. The ultimate loss ratios for accident years 2001 through 2016 in the other liability line of business were decreased slightly due to declines in expected ultimate claim frequency and/or severity, while in workers' compensation the favorable development was concentrated in accident year 2016 as reported losses to date were materially less than anticipated in the original claim frequency and severity assumptions. Due to increases in projected ultimate claim frequency and severity, the ultimate loss ratios in the commercial auto line of business were increased for accident years 2012 through 2014 and 2016, producing adverse reserve development for that line of business. Prior years' asbestos settlement expense reserves were also strengthened producing adverse reserve development. For the reinsurance segment, the March 31, 2017 estimate of loss and settlement expense reserves for accident years 2016 and prior decreased $6.4 million from the estimate at December 31, 2016 . This decrease represented 3.2 percent of the December 31, 2016 gross carried reserves and was primarily attributed to favorable prior year reserve development in the casualty excess and property/casualty global excess contract types. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 3 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION The Company’s operations consist of a property and casualty insurance segment and a reinsurance segment. The property and casualty insurance segment writes both commercial and personal lines of insurance, with a focus on medium-sized commercial accounts. The reinsurance segment provides reinsurance for other insurers and reinsurers. The segments are managed separately due to differences in the insurance products sold and the business environments in which they operate. Management evaluates the performance of its insurance segments using financial measurements based on Statutory Accounting Principles (SAP) instead of GAAP. Such measures include premiums written, premiums earned, statutory underwriting profit (loss), and investment results, as well as loss and loss adjustment expense ratios, trade underwriting expense ratios, and combined ratios. Summarized financial information for the Company’s segments is as follows: Three months ended March 31, 2018 Property and Reinsurance Parent Consolidated ($ in thousands) Premiums earned $ 118,632 $ 37,154 $ — $ 155,786 Underwriting profit (loss): SAP underwriting profit (loss) (9,036 ) 1,563 — (7,473 ) GAAP adjustments 262 102 — 364 GAAP underwriting profit (loss) (8,774 ) 1,665 — (7,109 ) Net investment income 8,148 3,218 5 11,371 Net realized investment gains (losses) and, beginning in 2018, change in unrealized investment gains on equity investments (3,293 ) (2,100 ) — (5,393 ) Other income (loss) 2,051 (436 ) — 1,615 Interest expense 142 — — 142 Other expenses 233 — 637 870 Income (loss) before income tax expense (benefit) $ (2,243 ) $ 2,347 $ (632 ) $ (528 ) Assets $ 1,185,069 $ 481,257 $ 581,742 $ 2,248,068 Eliminations — — (576,656 ) (576,656 ) Reclassifications (316 ) (5,045 ) (898 ) (6,259 ) Total assets $ 1,184,753 $ 476,212 $ 4,188 $ 1,665,153 Three months ended March 31, 2017 Property and Reinsurance Parent Consolidated ($ in thousands) Premiums earned $ 113,648 $ 30,839 $ — $ 144,487 Underwriting profit (loss): SAP underwriting profit (loss) (2,594 ) 3,247 — 653 GAAP adjustments (2,287 ) (331 ) — (2,618 ) GAAP underwriting profit (loss) (4,881 ) 2,916 — (1,965 ) Net investment income 8,015 2,983 9 11,007 Net realized investment gains (losses) and, beginning in 2018, change in unrealized investment gains on equity investments (597 ) (30 ) — (627 ) Other income (loss) 1,441 (571 ) — 870 Interest expense 84 — — 84 Other expenses 179 — 582 761 Income (loss) before income tax expense (benefit) $ 3,715 $ 5,298 $ (573 ) $ 8,440 Year ended December 31, 2017 Assets $ 1,200,636 $ 484,678 $ 604,105 $ 2,289,419 Eliminations — — (599,036 ) (599,036 ) Reclassifications (1,393 ) (6,273 ) (777 ) (8,443 ) Total assets $ 1,199,243 $ 478,405 $ 4,292 $ 1,681,940 The following table displays the premiums earned for the property and casualty insurance segment and the reinsurance segment for the three months ended March 31, 2018 and 2017 , by line of insurance. Three months ended March 31, ($ in thousands) 2018 2017 Property and casualty insurance segment Commercial lines: Automobile $ 30,644 $ 28,032 Property 26,429 25,502 Workers' compensation 24,902 24,703 Other liability 24,962 24,128 Other 2,186 2,109 Total commercial lines 109,123 104,474 Personal lines 9,509 9,174 Total property and casualty insurance $ 118,632 $ 113,648 Reinsurance segment Pro rata reinsurance $ 13,073 $ 10,435 Excess of loss reinsurance 24,081 20,404 Total reinsurance $ 37,154 $ 30,839 Consolidated $ 155,786 $ 144,487 |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The actual income tax expense (benefit) for the three months ended March 31, 2018 and 2017 differed from the “expected” income tax expense (benefit) for those periods (computed by applying the United States federal corporate tax rates of 21 percent during 2018 and 35 percent during 2017 to income (loss) before income tax) as follows: Three months ended ($ in thousands) 2018 2017 Computed "expected" income tax expense (benefit) $ (111 ) $ 2,954 Increases (decreases) in tax resulting from: Tax-exempt interest income (310 ) (705 ) Dividends received deduction (123 ) (306 ) Proration of tax-exempt interest and dividends received deduction 108 152 Other, net (16 ) (459 ) Total income tax expense (benefit) $ (452 ) $ 1,636 Pursuant to Staff Accounting Bulletin No. 118 issued by the Securities Exchange Commission, the Company made reasonable estimates of the effects the Tax Cuts and Jobs Act of 2017 (TCJA) had on deferred income tax assets and liabilities at December 31, 2017. For items where the Company could not make a reasonable estimate, primarily loss reserve discounting, the Company used existing accounting guidance and the provisions of the tax laws that were in place prior to the enactment. Beginning in the first quarter of 2018, the Company is using estimated industry discount factors until further guidance and updated discount factors are released by the Internal Revenue Service (IRS). The Company continues to gather information to provide a more precise re-measurement of deferred income tax assets and liabilities, and expects to complete its analysis of the effects of the TCJA within a year of the enactment date. The Company had no provision for uncertain income tax positions at March 31, 2018 or December 31, 2017 . The Company recognized no interest expense or other penalties related to U.S. federal or state income taxes during the three months ended March 31, 2018 or 2017 . It is the Company’s accounting policy to reflect income tax penalties as other expense, and interest as interest expense. The Company files a U.S. federal income tax return, along with various state income tax returns. The Company is no longer subject to U.S. federal and state income tax examinations by tax authorities for years before 2014. |
EMPLOYEE RETIREMENT PLANS
EMPLOYEE RETIREMENT PLANS | 3 Months Ended |
Mar. 31, 2018 | |
Retirement Benefits [Abstract] | |
EMPLOYEE RETIREMENT PLANS | EMPLOYEE RETIREMENT PLANS The components of net periodic benefit cost (income) for Employers Mutual’s pension and postretirement benefit plans is as follows: Three months ended ($ in thousands) 2018 2017 Pension plans: Service cost $ 4,126 $ 3,860 Interest cost 2,665 2,795 Expected return on plan assets (5,978 ) (5,191 ) Amortization of net actuarial loss 125 908 Amortization of prior service cost — 5 Net periodic pension benefit cost $ 938 $ 2,377 Postretirement benefit plans: Service cost $ 368 $ 341 Interest cost 521 570 Expected return on plan assets (1,204 ) (1,078 ) Amortization of net actuarial loss 234 343 Amortization of prior service credit (2,782 ) (2,789 ) Net periodic postretirement benefit income $ (2,863 ) $ (2,613 ) Net periodic pension benefit cost allocated to the Company amounted to $282,000 and $713,000 for the three months ended March 31, 2018 and 2017 , respectively. Net periodic postretirement benefit income allocated to the Company amounted to $806,000 and $736,000 for the three months ended March 31, 2018 and 2017 , respectively. The service cost component of net periodic pension and postretirement benefit cost/(income) allocated to the Company is included in the income statement line titled "other underwriting expenses". The other components of net periodic pension and postretirement benefit cost/(income) are included in the income statement line titled "other income". The Company’s share of Employers Mutual’s 2018 planned contribution to the pension plan, if made, will be approximately $2.4 million . No contributions will be made to the Voluntary Employee Beneficiary Association (VEBA) trust in 2018 . |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 3 Months Ended |
Mar. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION The Company has a stock-based compensation plan for non-employee directors. Employers Mutual also has several stock plans which utilize the common stock of the Company. Employers Mutual can provide the common stock required under its plans by: 1) using shares of common stock that it currently owns; 2) purchasing common stock in the open market; or 3) directly purchasing common stock from the Company at the current fair value. Employers Mutual's current practice is to purchase common stock from the Company for use in all of its stock plans (including its non-employee director stock purchase plan and its employee stock purchase plan). A portion of the compensation expense recognized by Employers Mutual (as the requisite service period for granted options and restricted stock awards/units is rendered) is allocated to the Company’s property and casualty insurance subsidiaries though their participation in the pooling agreement. An account Employers Mutual established to hold previously granted restricted stock awards until they vest will periodically contain excess shares of the Company's stock stemming from forfeitures and surrenders. During the first three months of 2018 , the Company repurchased 30,523 shares of stock from this unvested restricted stock account at an average cost of $26.30 . During the first three months of 2018 , 120,251 restricted stock units were granted to eligible employees of Employers Mutual. Under the stock plans, 89,550 shares of restricted stock vested, and 51,250 options were exercised at a weighted average exercise price of $14.95 . The Company recognized compensation expense from these plans of $413,000 ( $326,000 net of tax) and $(323,000) ( $(210,000) net of tax) for the three months ended March 31, 2018 and 2017 , respectively. |
DISCLOSURES ABOUT THE FAIR VALU
DISCLOSURES ABOUT THE FAIR VALUE OF FINANCIAL INSTRUMENTS | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
DISCLOSURES ABOUT THE FAIR VALUE OF FINANCIAL INSTRUMENTS | DISCLOSURES ABOUT THE FAIR VALUES OF FINANCIAL INSTRUMENTS The carrying amounts and estimated fair values of the Company’s financial instruments as of March 31, 2018 and December 31, 2017 are summarized in the tables below. March 31, 2018 Carrying Estimated ($ in thousands) Assets: Fixed maturity securities available-for-sale: U.S. treasury $ 7,956 $ 7,956 U.S. government-sponsored agencies 302,476 302,476 Obligations of states and political subdivisions 293,931 293,931 Commercial mortgage-backed 76,660 76,660 Residential mortgage-backed 132,350 132,350 Other asset-backed 22,748 22,748 Corporate 420,352 420,352 Total fixed maturity securities available-for-sale 1,256,473 1,256,473 Equity investments, at fair value Common stocks: Financial services 44,895 44,895 Information technology 33,886 33,886 Healthcare 28,372 28,372 Consumer staples 14,715 14,715 Consumer discretionary 21,966 21,966 Energy 15,620 15,620 Industrials 25,235 25,235 Other 15,762 15,762 Non-redeemable preferred stocks 19,224 19,224 Investment funds 823 823 Total equity investments 220,498 220,498 Short-term investments 21,664 21,664 Liabilities: Surplus notes 25,000 15,731 December 31, 2017 Carrying Estimated ($ in thousands) Assets: Fixed maturity securities available-for-sale: U.S. treasury $ 8,078 $ 8,078 U.S. government-sponsored agencies 297,949 297,949 Obligations of states and political subdivisions 307,536 307,536 Commercial mortgage-backed 83,980 83,980 Residential mortgage-backed 119,799 119,799 Other asset-backed 24,114 24,114 Corporate 433,560 433,560 Total fixed maturity securities available-for-sale 1,275,016 1,275,016 Equity securities available-for-sale: Common stocks: Financial services 43,522 43,522 Information technology 35,810 35,810 Healthcare 30,595 30,595 Consumer staples 14,127 14,127 Consumer discretionary 20,538 20,538 Energy 16,905 16,905 Industrials 28,489 28,489 Other 16,421 16,421 Non-redeemable preferred stocks 21,708 21,708 Total equity securities available-for-sale 228,115 228,115 Short-term investments 23,613 23,613 Liabilities: Surplus notes 25,000 16,689 The estimated fair values of fixed maturity and equity securities is based on quoted market prices, where available. In cases where quoted market prices are not available, fair values are based on a variety of valuation techniques depending on the type of security. At both March 31, 2018 and December 31, 2017 the Company held $2.0 million of privately placed non-redeemable convertible preferred stocks in a start-up technology company that Employers Mutual works with in its data analytics activities. In accordance with the new guidance related to financial instruments that was adopted January 1, 2018, this investment does not have a readily determinable fair value. Therefore, the Company has elected to measure this investment at the alternative measurement of cost, adjusted for impairments and observable price changes. No impairment losses or adjustments have been made to this investment, either cumulatively or during the current period, as there have been no indications of impairment or observable price changes. Due to its alternative measurement classification, this investment is excluded from the 2018 disclosures in this footnote, but is included in the 2017 disclosures as a Level 3 fair value measurement carried at cost, which was presumed to approximate fair value. Short-term investments generally include money market funds, U.S. Treasury bills and commercial paper. Short-term investments are carried at fair value, which approximates cost, due to the highly liquid nature of the securities. Short-term securities are classified as Level 1 fair value measurements when the fair values can be validated by recent trades. When recent trades are not available, fair value is deemed to be the cost basis and the securities are classified as Level 2 fair value measurements. The estimated fair value of the surplus notes is derived by discounting future expected cash flows at a rate deemed appropriate over a 25 -year term (the surplus notes have no stated maturity date, and the interest to be paid is assumed to continue at the current interest rate in place of 2.73 percent ). Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The following fair value hierarchy prioritizes inputs to valuation techniques used to measure fair value. Level 1 - Unadjusted quoted prices for identical assets or liabilities in active markets that the Company has the ability to access. Level 2 - Quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in inactive markets; or valuations based on models where the significant inputs are observable (e.g., interest rates, yield curves, prepayment speeds, default rates, loss severities, etc.) or can be corroborated by observable market data. Level 3 - Prices or valuation techniques that require significant unobservable inputs because observable inputs are not available. The unobservable inputs may reflect the Company’s own judgments about the assumptions that market participants would use. NAV - The fair values of investment company limited partnership investments and similar vehicles (referred to as investment funds) are based on the capital account balances reported by the investment funds subject to their management review and adjustment. These capital account balances reflect the fair value of the investment funds. The Company uses an independent pricing source to obtain the estimated fair values of a majority of its securities, subject to an internal validation. The fair values are based on quoted market prices, where available. This is typically the case for equity securities and money market funds, which are accordingly classified as Level 1 fair value measurements. In cases where quoted market prices are not available, fair values are based on a variety of valuation techniques depending on the type of security. Fixed maturity securities, non-redeemable preferred stocks and various short-term investments in the Company’s portfolio may not trade on a daily basis; however, observable inputs are utilized in their valuations, and these securities are therefore classified as Level 2 fair value measurements. Following is a brief description of the various pricing techniques used by the independent pricing source for different asset classes. • U.S. Treasury securities (including bonds, notes, and bills) are priced according to a number of live data sources, including active market makers and inter-dealer brokers. Prices from these sources are reviewed based on the sources’ historical accuracy for individual issues and maturity ranges. • U.S. government-sponsored agencies and corporate securities (including fixed-rate corporate bonds and medium-term notes) are priced by determining a bullet (non-call) spread scale for each issuer for maturities going out to forty years. These spreads represent credit risk and are obtained from the new issue market, secondary trading, and dealer quotes. An option adjusted spread model is incorporated to adjust spreads of issues that have early redemption features. The final spread is then added to the U.S. Treasury curve. • Obligations of states and political subdivisions are priced by tracking and analyzing actively quoted issues and reported trades, material event notices and benchmark yields. Municipal bonds with similar characteristics are grouped together into market sectors, and internal yield curves are constructed daily for these sectors. Individual bond evaluations are extrapolated from these sectors, with the ability to make individual spread adjustments for attributes such as discounts, premiums, alternative minimum tax, and/or whether or not the bond is callable. • Mortgage-backed and asset-backed securities are first reviewed for the appropriate pricing speed (if prepayable), spread, yield and volatility. The securities are priced with models using spreads and other information solicited from market buy- and sell-side sources, including primary and secondary dealers, portfolio managers, and research analysts. To determine a tranche’s price, first the benchmark yield is determined and adjusted for collateral performance, tranche level attributes and market conditions. Then the cash flow for each tranche is generated (using consensus prepayment speed assumptions including, as appropriate, a prepayment projection based on historical statistics of the underlying collateral). The tranche-level yield is used to discount the cash flows and generate the price. Depending on the characteristics of the tranche, a volatility-driven, multi-dimensional single cash flow stream model or an option-adjusted spread model may be used. When cash flows or other security structure or market information is not available, broker quotes may be used. On a quarterly basis, the Company receives from its independent pricing service a list of fixed maturity securities, if any, that were priced solely from broker quotes. For these securities, fair value may be determined using the broker quotes, or by the Company using similar pricing techniques as the Company’s independent pricing service. Depending on the level of observable inputs, these securities would be classified as Level 2 or Level 3 fair value measurements. At March 31, 2018 and December 31, 2017 , the Company had no securities priced solely from broker quotes. A small number of the Company’s securities are not priced by the independent pricing service. One of these is an equity security that is reported as a Level 3 fair value measurement since no observable inputs are used in its valuation. This security continues to be reported at the fair value obtained from the Securities Valuation Office (SVO) of the National Association of Insurance Commissioners (NAIC). The SVO establishes a per share price for this security based on an annual review of that company’s financial statements, typically performed during the second quarter. The other securities not priced by the Company’s independent pricing service consist of six fixed maturity securities ( eight at December 31, 2017). Two of these fixed maturity securities, classified as Level 3 fair value measurements, are corporate securities that convey premium tax benefits and are not publicly traded. The fair values for these securities are based on discounted cash flow analyses. The other fixed maturity securities are classified as Level 2 fair value measurements. The fair values for these fixed maturity securities were obtained from either the SVO, the Company's investment custodian, or the Company's investment department using similar pricing techniques as the Company’s independent pricing service. Presented in the tables below are the estimated fair values of the Company’s financial instruments as of March 31, 2018 and December 31, 2017 . March 31, 2018 Fair value measurements using ($ in thousands) Total Investments measured at net asset value (NAV) Quoted Significant Significant Financial instruments reported at fair value on recurring basis: Assets: Fixed maturity securities available-for-sale: U.S. treasury $ 7,956 $ — $ — $ 7,956 $ — U.S. government-sponsored agencies 302,476 — — 302,476 — Obligations of states and political subdivisions 293,931 — — 293,931 — Commercial mortgage-backed 76,660 — — 76,660 — Residential mortgage-backed 132,350 — — 132,350 — Other asset-backed 22,748 — — 22,748 — Corporate 420,352 — — 419,790 562 Total fixed maturity securities available-for-sale 1,256,473 — — 1,255,911 562 Equity investments, at fair value: Common stocks: Financial services 44,895 — 44,892 — 3 Information technology 33,886 — 33,886 — — Healthcare 28,372 — 28,372 — — Consumer staples 14,715 — 14,715 — — Consumer discretionary 21,966 — 21,966 — — Energy 15,620 — 15,620 — — Industrials 25,235 — 25,235 — — Other 15,762 — 15,762 — — Non-redeemable preferred stocks 19,224 — 9,443 9,781 — Investment funds 823 823 — — — Total equity investments 220,498 823 209,891 9,781 3 Short-term investments 21,664 — 21,664 — — Financial instruments not reported at fair value: Liabilities: Surplus notes 15,731 — — — 15,731 December 31, 2017 Fair value measurements using ($ in thousands) Total Investments measured at net asset value (NAV) Quoted Significant Significant Financial instruments reported at fair value on recurring basis: Assets: Fixed maturity securities available-for-sale: U.S. treasury $ 8,078 $ — $ — $ 8,078 $ — U.S. government-sponsored agencies 297,949 — — 297,949 — Obligations of states and political subdivisions 307,536 — — 307,536 — Commercial mortgage-backed 83,980 — — 83,980 — Residential mortgage-backed 119,799 — — 119,799 — Other asset-backed 24,114 — — 24,114 — Corporate 433,560 — — 432,940 620 Total fixed maturity securities available-for-sale 1,275,016 — — 1,274,396 620 Equity securities available-for-sale: Common stocks: Financial services 43,522 — 43,519 — 3 Information technology 35,810 — 35,810 — — Healthcare 30,595 — 30,595 — — Consumer staples 14,127 — 14,127 — — Consumer discretionary 20,538 — 20,538 — — Energy 16,905 — 16,905 — — Industrials 28,489 — 28,489 — — Other 16,421 — 16,421 — — Non-redeemable preferred stocks 21,708 — 9,512 10,196 2,000 Total equity securities available-for-sale 228,115 — 215,916 10,196 2,003 Short-term investments 23,613 — 23,613 — — Financial instruments not reported at fair value: Liabilities: Surplus notes 16,689 — — — 16,689 Presented in the table below is a reconciliation of the assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three months ended March 31, 2018 and 2017 . Any unrealized gains or losses on these securities are recognized in other comprehensive income (loss). Any gains or losses from settlements, disposals or impairments of these securities are reported as realized investment gains or losses in net income. ($ in thousands) Fair value measurements using significant unobservable (Level 3) inputs Three months ended March 31, 2018 Fixed maturity securities available-for-sale, corporate Equity securities, Total Beginning balance $ 620 $ 3 $ 623 Settlements (56 ) — (56 ) Unrealized losses included in other comprehensive income (loss) (2 ) — (2 ) Balance at March 31, 2018 $ 562 $ 3 $ 565 ($ in thousands) Fair value measurements using significant unobservable (Level 3) inputs Three months ended March 31, 2017 Fixed maturity securities available-for-sale, corporate Equity securities available-for-sale, financial services Equity securities available-for-sale, non-redeemable preferred stocks Total Beginning balance $ 982 $ 3 $ 2,000 $ 2,985 Settlements (50 ) — — (50 ) Unrealized losses included in other comprehensive income (loss) (3 ) — — (3 ) Balance at March 31, 2017 $ 929 $ 3 $ 2,000 $ 2,932 There were no transfers into or out of Levels 1 or 2 during the three months ended March 31, 2018 or 2017 . It is the Company’s policy to recognize transfers between levels at the beginning of the reporting period. |
INVESTMENTS
INVESTMENTS | 3 Months Ended |
Mar. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
INVESTMENTS | INVESTMENTS Investments of the Company’s insurance subsidiaries are subject to the insurance laws of the state of their incorporation. These laws prescribe the kind, quality and concentration of investments that may be made by insurance companies. In general, these laws permit investments, within specified limits and subject to certain qualifications, in federal, state and municipal obligations, corporate bonds, preferred and common stocks and real estate mortgages. The Company believes that it is in compliance with these laws. The amortized cost and estimated fair value of securities available-for-sale as of March 31, 2018 and December 31, 2017 are as follows. All fixed maturity securities are classified as available-for-sale and are carried at fair value. March 31, 2018 Amortized Gross Gross Estimated ($ in thousands) Securities available-for-sale: Fixed maturity securities: U.S. treasury $ 8,121 $ — $ 165 $ 7,956 U.S. government-sponsored agencies 313,212 36 10,772 302,476 Obligations of states and political subdivisions 282,149 12,391 609 293,931 Commercial mortgage-backed 79,011 311 2,662 76,660 Residential mortgage-backed 134,691 1,898 4,239 132,350 Other asset-backed 23,148 418 818 22,748 Corporate 418,058 4,742 2,448 420,352 Total fixed maturity securities $ 1,258,390 $ 19,796 $ 21,713 $ 1,256,473 December 31, 2017 Amortized Gross Gross Estimated ($ in thousands) Securities available-for-sale: Fixed maturity securities: U.S. treasury $ 8,115 $ — $ 37 $ 8,078 U.S. government-sponsored agencies 303,932 122 6,105 297,949 Obligations of states and political subdivisions 290,038 17,729 231 307,536 Commercial mortgage-backed 84,058 591 669 83,980 Residential mortgage-backed 120,554 2,479 3,234 119,799 Other asset-backed 23,934 625 445 24,114 Corporate 422,535 11,490 465 433,560 Total fixed maturity securities 1,253,166 33,036 11,186 1,275,016 Equity securities: Common stocks: Financial services 30,103 13,594 175 43,522 Information technology 18,308 17,504 2 35,810 Healthcare 18,877 11,876 158 30,595 Consumer staples 9,275 4,917 65 14,127 Consumer discretionary 10,935 9,640 37 20,538 Energy 12,441 5,381 917 16,905 Industrials 12,746 15,757 14 28,489 Other 11,058 5,363 — 16,421 Non-redeemable preferred stocks 20,531 1,216 39 21,708 Total equity securities 144,274 85,248 1,407 228,115 Total securities available-for-sale $ 1,397,440 $ 118,284 $ 12,593 $ 1,503,131 The following tables set forth the estimated fair values and gross unrealized losses associated with investment securities that were in an unrealized loss position recognized in accumulated other comprehensive income as of March 31, 2018 and December 31, 2017 , listed by length of time the securities were consistently in an unrealized loss position. March 31, 2018 Less than twelve months Twelve months or longer Total ($ in thousands) Fair Unrealized Fair Unrealized Fair Unrealized Securities available-for-sale: Fixed maturity securities: U.S. treasury $ 7,956 $ 165 $ — $ — $ 7,956 $ 165 U.S. government-sponsored agencies 159,653 3,831 125,284 6,941 284,937 10,772 Obligations of states and political subdivisions 11,287 78 14,057 531 25,344 609 Commercial mortgage-backed 61,143 1,971 8,280 691 69,423 2,662 Residential mortgage-backed 67,489 1,568 21,858 2,671 89,347 4,239 Other asset-backed 5,158 79 12,963 739 18,121 818 Corporate 167,148 2,263 3,999 185 171,147 2,448 Total fixed maturity securities $ 479,834 $ 9,955 $ 186,441 $ 11,758 $ 666,275 $ 21,713 December 31, 2017 Less than twelve months Twelve months or longer Total ($ in thousands) Fair Unrealized Fair Unrealized Fair Unrealized Securities available-for-sale: Fixed maturity securities: U.S. treasury $ 8,078 $ 37 $ — $ — $ 8,078 $ 37 U.S. government-sponsored agencies 134,284 1,491 127,604 4,614 261,888 6,105 Obligations of states and political subdivisions — — 14,416 231 14,416 231 Commercial mortgage-backed 32,155 221 8,530 448 40,685 669 Residential mortgage-backed 30,003 394 22,948 2,840 52,951 3,234 Other asset-backed — — 13,440 445 13,440 445 Corporate 28,314 329 4,047 136 32,361 465 Total fixed maturity securities 232,834 2,472 190,985 8,714 423,819 11,186 Equity securities: Common stocks: Financial services 4,391 175 — — 4,391 175 Information technology 344 2 — — 344 2 Healthcare 2,532 158 — — 2,532 158 Consumer staples 575 65 — — 575 65 Consumer discretionary 992 37 — — 992 37 Energy 3,181 917 — — 3,181 917 Industrials 3,016 14 — — 3,016 14 Non-redeemable preferred stocks — — 1,961 39 1,961 39 Total equity securities 15,031 1,368 1,961 39 16,992 1,407 Total temporarily impaired securities $ 247,865 $ 3,840 $ 192,946 $ 8,753 $ 440,811 $ 12,593 Nearly all of the fixed maturity securities that are in an unrealized loss position are considered investment grade by credit rating agencies. Because management does not intend to sell these securities, does not believe it will be required to sell these securities before recovery, and believes it will collect the amounts due on these securities, it was determined that these securities were not “other-than-temporarily” impaired at March 31, 2018 . All of the Company’s preferred stock holdings that are in an unrealized loss position are perpetual preferred stocks. The Company evaluates these perpetual preferred stocks with unrealized losses for “other-than-temporary” impairment similar to fixed maturity securities since they have debt-like characteristics such as periodic cash flows in the form of dividends and call features, are rated by rating agencies and are priced like other long-term callable fixed maturity securities. There was no evidence of any credit deterioration in the issuers of the preferred stocks and the Company does not intend to sell these securities before recovery, nor does it believe it will be required to sell these securities before recovery; therefore, it was determined that these securities were not “other-than-temporarily” impaired at March 31, 2018 . The amortized cost and estimated fair values of fixed maturity securities at March 31, 2018 , by contractual maturity, are shown below. 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. ($ in thousands) Amortized Estimated Securities available-for-sale: Due in one year or less $ 35,995 $ 36,421 Due after one year through five years 189,333 191,111 Due after five years through ten years 348,705 347,330 Due after ten years 468,751 470,731 Securities not due at a single maturity date 215,606 210,880 Totals $ 1,258,390 $ 1,256,473 A summary of realized investment gains and (losses) and the change in unrealized investment gains on equity investments is as follows: Three months ended March 31, ($ in thousands) 2018 2017 Fixed maturity securities available-for-sale: Gross realized investment gains $ 234 $ 90 Gross realized investment losses (478 ) (1,206 ) Equity securities: Net realized investment gains, excluding "other-than-temporary" impairments 2,716 2,776 Change in unrealized investment gains (9,854 ) XXXX Other long-term investments, net 1,989 (2,287 ) Totals $ (5,393 ) $ (627 ) Gains and losses realized on the disposition of investments are included in net income. The cost of investments sold is determined on the specific identification method using the highest cost basis first. The Company did not have any outstanding cumulative credit losses on fixed maturity securities that have been recognized in earnings from “other-than-temporary” impairments during any of the reported periods. The net realized investment losses recognized on other long-term investments primarily represent changes in the carrying value of a limited partnership that is used solely to support an equity tail-risk hedging strategy. |
CONTINGENT LIABILITIES
CONTINGENT LIABILITIES | 3 Months Ended |
Mar. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
CONTINGENT LIABILITIES | CONTINGENT LIABILITIES The Company and Employers Mutual and its other subsidiaries are parties to numerous lawsuits arising in the normal course of the insurance business. The Company believes that the resolution of these lawsuits will not have a material adverse effect on its financial condition or its results of operations. The companies involved have established reserves which are believed adequate to cover any potential liabilities arising out of all such pending or threatened proceedings. The participants in the pooling agreement have purchased annuities from life insurance companies, under which the claimant is payee, to fund future payments that are fixed pursuant to specific claim settlement provisions. The Company’s share of case loss reserves eliminated by the purchase of those annuities was $110,000 at December 31, 2017 . The Company had a contingent liability for the aggregate guaranteed amount of the annuities of $183,000 at December 31, 2017 should the issuers of those annuities fail to perform. Although management is not able to verify the amount, the Company would likely have a similar contingent liability at March 31, 2018 . The probability of a material loss due to failure of performance by the issuers of these annuities is considered remote. |
STOCK REPURCHASE PROGRAM
STOCK REPURCHASE PROGRAM | 3 Months Ended |
Mar. 31, 2018 | |
Equity [Abstract] | |
STOCK REPURCHASE PROGRAM | STOCK REPURCHASE PROGRAM On November 3, 2011, the Company’s Board of Directors authorized a $15.0 million stock repurchase program. This program does not have an expiration date. The timing and terms of the purchases are determined by management based on board approved parameters and market conditions, and are conducted in accordance with the applicable rules of the Securities and Exchange Commission. Common stock repurchased under this program will be retired by the Company. The Company did not repurchase any shares during the first three months of either 2018 or 2017. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME | 3 Months Ended |
Mar. 31, 2018 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME | ACCUMULATED OTHER COMPREHENSIVE INCOME The Company has available-for-sale securities and receives an allocation of the actuarial losses and net prior service credits associated with Employers Mutual’s pension and postretirement benefit plans, both of which generate accumulated other comprehensive income (loss) amounts. The following table reconciles, by component, the beginning and ending balances of accumulated other comprehensive income (loss), net of tax. Accumulated other comprehensive income (loss) by component Unrealized Unrecognized pension and postretirement benefit obligations ($ in thousands) Net actuarial loss Prior service credit Total Total Balance at December 31, 2017 $ 83,497 $ (13,074 ) $ 12,961 $ (113 ) $ 83,384 Cumulative adjustment for adoption of financial instruments recognition and measurement changes (66,234 ) — — — (66,234 ) Other comprehensive income (loss) before reclassifications (18,969 ) — — — (18,969 ) Amounts reclassified from accumulated other comprehensive income (loss) 193 81 (622 ) (541 ) (348 ) Other comprehensive income (loss) (18,776 ) 81 (622 ) (541 ) (19,317 ) Balance at March 31, 2018 $ (1,513 ) $ (12,993 ) $ 12,339 $ (654 ) $ (2,167 ) Accumulated other comprehensive income (loss) by component Unrealized Unrecognized pension and postretirement benefit obligations ($ in thousands) Net actuarial loss Prior service credit Total Total Balance at December 31, 2016 $ 49,748 $ (16,299 ) $ 12,632 $ (3,667 ) $ 46,081 Other comprehensive income (loss) before reclassifications 9,705 — — — 9,705 Amounts reclassified from accumulated other comprehensive income (loss) (1,079 ) 239 (511 ) (272 ) (1,351 ) Other comprehensive income (loss) 8,626 239 (511 ) (272 ) 8,354 Balance at March 31, 2017 $ 58,374 $ (16,060 ) $ 12,121 $ (3,939 ) $ 54,435 The following tables display amounts reclassified out of accumulated other comprehensive income and into net income during the three months ended March 31, 2018 and 2017 , respectively. ($ in thousands) Amounts reclassified from accumulated other comprehensive income (loss) Accumulated other comprehensive Three months ended Affected line item in the Unrealized gains (losses) on investments: Reclassification adjustment for net realized investment gains (losses) included in net income $ (244 ) Net realized investment gains (losses) and, beginning in 2018, change in unrealized investment gains on equity investments Deferred income tax (expense) benefit 51 Total income tax expense (benefit) Net reclassification adjustment (193 ) Net income (loss) Unrecognized pension and postretirement benefit obligations: Reclassification adjustment for amounts amortized into net periodic pension and postretirement benefit income: Net actuarial loss (103 ) (1) Prior service credit 788 (1) Total before tax 685 Deferred income tax (expense) benefit (144 ) Net reclassification adjustment 541 Total reclassification adjustment $ 348 (1) These reclassified components of accumulated other comprehensive income are included in the computation of net periodic pension and postretirement benefit income (see note 7, Employee Retirement Plans, for additional details). ($ in thousands) Amounts reclassified from accumulated other comprehensive income (loss) Accumulated other comprehensive Three months ended March 31, 2017 Affected line item in the Unrealized gains (losses) on investments: Reclassification adjustment for net realized investment gains (losses) included in net income $ 1,660 Net realized investment gains (losses) and, beginning in 2018, change in unrealized investment gains on equity investments Deferred income tax (expense) benefit (581 ) Total income tax expense (benefit) Net reclassification adjustment 1,079 Net income (loss) Unrecognized pension and postretirement benefit obligations: Reclassification adjustment for amounts amortized into net periodic pension and postretirement benefit income: Net actuarial loss (368 ) (1) Prior service credit 787 (1) Total before tax 419 Deferred income tax (expense) benefit (147 ) Net reclassification adjustment 272 Total reclassification adjustment $ 1,351 (1) These reclassified components of accumulated other comprehensive income are included in the computation of net periodic pension and postretirement benefit income (see note 7, Employee Retirement Plans, for additional details). |
NEW ACCOUNTING PRONOUNCEMENTS N
NEW ACCOUNTING PRONOUNCEMENTS NOT YET ADOPTED | 3 Months Ended |
Mar. 31, 2018 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
NEW ACCOUNTING PRONOUNCEMENTS NOT YET ADOPTED | NEW ACCOUNTING PRONOUNCEMENTS NOT YET ADOPTED In February 2016, the FASB issued updated guidance in Leases Topic 842 of the ASC, which supersedes the guidance in Leases Topic 840 of the ASC. The objective of this update is to increase transparency and comparability among organizations by requiring recognition of lease assets and lease liabilities on the balance sheet, and disclosure of key information about leasing arrangements. This guidance is effective for interim and annual periods beginning after December 15, 2018, and is to be applied using a modified retrospective approach. Early adoption is permitted. The Company will adopt this guidance during the first quarter of 2019. Management continues to research this guidance, which thus far has lead management to a preliminary determination that lease costs allocated to the Company through the pooling and quota share agreements can not be attributed to a specified asset, and therefore do not meet the definition of a leased asset contained in the guidance. As a result, adoption of this guidance is not expected to have a material impact on the Company's consolidated financial condition or net income. In June 2016, the FASB issued updated guidance in Financial Instruments-Credit Losses Topic 326 of the ASC. The objective of this update is to provide information about expected credit losses on financial instruments and other commitments to extend credit. Specifically, this updated guidance replaces the current incurred loss impairment methodology which delays recognition of a loss until it is probable a loss has been incurred, with a methodology that reflects expected credit losses considering a broader range of reasonable and supportable information. This guidance covers financial assets that are not accounted for at fair value through net income, thus will not be applicable to the Company's equity investments upon implementation of the updated guidance described above for the Financial Instruments-Overall Subtopic 825-10. This guidance is effective for interim and annual periods beginning after December 15, 2019, and is to be applied with a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective (modified-retrospective approach). Early adoption is permitted, but only to fiscal years beginning after December 15, 2018. The Company will adopt this guidance during the first quarter of 2020. The Company is currently evaluating the impact this guidance will have on the Company's consolidated financial condition and net income. |
REINSURANCE (Tables)
REINSURANCE (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Reinsurance Disclosures [Abstract] | |
Schedule of reinsurance transactions for insurance companies | The effect of reinsurance on premiums written and earned, and losses and settlement expenses incurred, for the three months ended March 31, 2018 and 2017 is presented below. The classification of the assumed and ceded reinsurance amounts between affiliates and nonaffiliates is based on the participants in the underlying reinsurance agreements, and is intended to provide an understanding of the actual source of the reinsurance activities. This presentation differs from the classifications used in the consolidated financial statements, where all amounts flowing through the pooling and quota share agreements and inter-company reinsurance programs with Employers Mutual are reported as “affiliated” balances. Three months ended March 31, 2018 ($ in thousands) Property and Reinsurance Total Premiums written Direct $ 100,044 $ — $ 100,044 Assumed from nonaffiliates 1,018 41,121 42,139 Assumed from affiliates 130,201 — 130,201 Ceded to nonaffiliates (7,970 ) (2,005 ) (9,975 ) Ceded to affiliates (103,024 ) (1,313 ) (104,337 ) Net premiums written $ 120,269 $ 37,803 $ 158,072 Premiums earned Direct $ 95,745 $ — $ 95,745 Assumed from nonaffiliates 1,002 41,092 42,094 Assumed from affiliates 129,148 — 129,148 Ceded to nonaffiliates (8,538 ) (2,625 ) (11,163 ) Ceded to affiliates (98,725 ) (1,313 ) (100,038 ) Net premiums earned $ 118,632 $ 37,154 $ 155,786 Losses and settlement expenses incurred Direct $ 52,287 $ — $ 52,287 Assumed from nonaffiliates 992 26,415 27,407 Assumed from affiliates 85,967 358 86,325 Ceded to nonaffiliates (2,991 ) (399 ) (3,390 ) Ceded to affiliates (52,754 ) 753 (52,001 ) Net losses and settlement expenses incurred $ 83,501 $ 27,127 $ 110,628 Three months ended March 31, 2017 ($ in thousands) Property and Reinsurance Total Premiums written Direct $ 96,752 $ — $ 96,752 Assumed from nonaffiliates 919 33,505 34,424 Assumed from affiliates 124,800 — 124,800 Ceded to nonaffiliates (8,133 ) (2,024 ) (10,157 ) Ceded to affiliates (99,731 ) (1,213 ) (100,944 ) Net premiums written $ 114,607 $ 30,268 $ 144,875 Premiums earned Direct $ 95,898 $ — $ 95,898 Assumed from nonaffiliates 1,015 34,689 35,704 Assumed from affiliates 122,097 — 122,097 Ceded to nonaffiliates (6,484 ) (2,637 ) (9,121 ) Ceded to affiliates (98,878 ) (1,213 ) (100,091 ) Net premiums earned $ 113,648 $ 30,839 $ 144,487 Losses and settlement expenses incurred Direct $ 62,761 $ — $ 62,761 Assumed from nonaffiliates 752 21,240 21,992 Assumed from affiliates 76,742 364 77,106 Ceded to nonaffiliates (1,401 ) (830 ) (2,231 ) Ceded to affiliates (63,334 ) (9 ) (63,343 ) Net losses and settlement expenses incurred $ 75,520 $ 20,765 $ 96,285 |
LIABILITY FOR LOSSES AND SETT27
LIABILITY FOR LOSSES AND SETTLEMENT EXPENSES (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Liability for Future Policy Benefits and Unpaid Claims and Claims Adjustment Expense [Abstract] | |
Schedule of reconciliation of beginning and ending reserves for losses and settlement expenses | The following table sets forth a reconciliation of beginning and ending reserves for losses and settlement expenses of the Company. Amounts presented are on a net basis, with a reconciliation of beginning and ending reserves to the gross amounts presented in the consolidated financial statements. Three months ended March 31, ($ in thousands) 2018 2017 Gross reserves at beginning of year $ 732,612 $ 690,532 Re-valuation due to foreign currency exchange rates 525 (1,913 ) Less ceded reserves at beginning of year 30,923 20,664 Net reserves at beginning of year 701,164 671,781 Incurred losses and settlement expenses related to: Current year 116,204 111,189 Prior years (5,576 ) (14,904 ) Total incurred losses and settlement expenses 110,628 96,285 Paid losses and settlement expenses related to: Current year 24,262 22,923 Prior years 81,877 69,826 Total paid losses and settlement expenses 106,139 92,749 Net reserves at end of period 705,653 675,317 Plus ceded reserves at end of period 30,549 20,788 Re-valuation due to foreign currency exchange rates 853 (976 ) Gross reserves at end of period $ 737,055 $ 695,129 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Summarized financial information for segments | Summarized financial information for the Company’s segments is as follows: Three months ended March 31, 2018 Property and Reinsurance Parent Consolidated ($ in thousands) Premiums earned $ 118,632 $ 37,154 $ — $ 155,786 Underwriting profit (loss): SAP underwriting profit (loss) (9,036 ) 1,563 — (7,473 ) GAAP adjustments 262 102 — 364 GAAP underwriting profit (loss) (8,774 ) 1,665 — (7,109 ) Net investment income 8,148 3,218 5 11,371 Net realized investment gains (losses) and, beginning in 2018, change in unrealized investment gains on equity investments (3,293 ) (2,100 ) — (5,393 ) Other income (loss) 2,051 (436 ) — 1,615 Interest expense 142 — — 142 Other expenses 233 — 637 870 Income (loss) before income tax expense (benefit) $ (2,243 ) $ 2,347 $ (632 ) $ (528 ) Assets $ 1,185,069 $ 481,257 $ 581,742 $ 2,248,068 Eliminations — — (576,656 ) (576,656 ) Reclassifications (316 ) (5,045 ) (898 ) (6,259 ) Total assets $ 1,184,753 $ 476,212 $ 4,188 $ 1,665,153 Three months ended March 31, 2017 Property and Reinsurance Parent Consolidated ($ in thousands) Premiums earned $ 113,648 $ 30,839 $ — $ 144,487 Underwriting profit (loss): SAP underwriting profit (loss) (2,594 ) 3,247 — 653 GAAP adjustments (2,287 ) (331 ) — (2,618 ) GAAP underwriting profit (loss) (4,881 ) 2,916 — (1,965 ) Net investment income 8,015 2,983 9 11,007 Net realized investment gains (losses) and, beginning in 2018, change in unrealized investment gains on equity investments (597 ) (30 ) — (627 ) Other income (loss) 1,441 (571 ) — 870 Interest expense 84 — — 84 Other expenses 179 — 582 761 Income (loss) before income tax expense (benefit) $ 3,715 $ 5,298 $ (573 ) $ 8,440 Year ended December 31, 2017 Assets $ 1,200,636 $ 484,678 $ 604,105 $ 2,289,419 Eliminations — — (599,036 ) (599,036 ) Reclassifications (1,393 ) (6,273 ) (777 ) (8,443 ) Total assets $ 1,199,243 $ 478,405 $ 4,292 $ 1,681,940 |
Summary of net premiums earned by line of insurance | The following table displays the premiums earned for the property and casualty insurance segment and the reinsurance segment for the three months ended March 31, 2018 and 2017 , by line of insurance. Three months ended March 31, ($ in thousands) 2018 2017 Property and casualty insurance segment Commercial lines: Automobile $ 30,644 $ 28,032 Property 26,429 25,502 Workers' compensation 24,902 24,703 Other liability 24,962 24,128 Other 2,186 2,109 Total commercial lines 109,123 104,474 Personal lines 9,509 9,174 Total property and casualty insurance $ 118,632 $ 113,648 Reinsurance segment Pro rata reinsurance $ 13,073 $ 10,435 Excess of loss reinsurance 24,081 20,404 Total reinsurance $ 37,154 $ 30,839 Consolidated $ 155,786 $ 144,487 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Reconciliation of income tax expense (benefit) | The actual income tax expense (benefit) for the three months ended March 31, 2018 and 2017 differed from the “expected” income tax expense (benefit) for those periods (computed by applying the United States federal corporate tax rates of 21 percent during 2018 and 35 percent during 2017 to income (loss) before income tax) as follows: Three months ended ($ in thousands) 2018 2017 Computed "expected" income tax expense (benefit) $ (111 ) $ 2,954 Increases (decreases) in tax resulting from: Tax-exempt interest income (310 ) (705 ) Dividends received deduction (123 ) (306 ) Proration of tax-exempt interest and dividends received deduction 108 152 Other, net (16 ) (459 ) Total income tax expense (benefit) $ (452 ) $ 1,636 |
EMPLOYEE RETIREMENT PLANS (Tabl
EMPLOYEE RETIREMENT PLANS (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Retirement Benefits [Abstract] | |
Components of net periodic benefit cost | The components of net periodic benefit cost (income) for Employers Mutual’s pension and postretirement benefit plans is as follows: Three months ended ($ in thousands) 2018 2017 Pension plans: Service cost $ 4,126 $ 3,860 Interest cost 2,665 2,795 Expected return on plan assets (5,978 ) (5,191 ) Amortization of net actuarial loss 125 908 Amortization of prior service cost — 5 Net periodic pension benefit cost $ 938 $ 2,377 Postretirement benefit plans: Service cost $ 368 $ 341 Interest cost 521 570 Expected return on plan assets (1,204 ) (1,078 ) Amortization of net actuarial loss 234 343 Amortization of prior service credit (2,782 ) (2,789 ) Net periodic postretirement benefit income $ (2,863 ) $ (2,613 ) |
DISCLOSURES ABOUT THE FAIR VA31
DISCLOSURES ABOUT THE FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Summary of carrying amount and estimated fair value of financial instruments | The carrying amounts and estimated fair values of the Company’s financial instruments as of March 31, 2018 and December 31, 2017 are summarized in the tables below. March 31, 2018 Carrying Estimated ($ in thousands) Assets: Fixed maturity securities available-for-sale: U.S. treasury $ 7,956 $ 7,956 U.S. government-sponsored agencies 302,476 302,476 Obligations of states and political subdivisions 293,931 293,931 Commercial mortgage-backed 76,660 76,660 Residential mortgage-backed 132,350 132,350 Other asset-backed 22,748 22,748 Corporate 420,352 420,352 Total fixed maturity securities available-for-sale 1,256,473 1,256,473 Equity investments, at fair value Common stocks: Financial services 44,895 44,895 Information technology 33,886 33,886 Healthcare 28,372 28,372 Consumer staples 14,715 14,715 Consumer discretionary 21,966 21,966 Energy 15,620 15,620 Industrials 25,235 25,235 Other 15,762 15,762 Non-redeemable preferred stocks 19,224 19,224 Investment funds 823 823 Total equity investments 220,498 220,498 Short-term investments 21,664 21,664 Liabilities: Surplus notes 25,000 15,731 December 31, 2017 Carrying Estimated ($ in thousands) Assets: Fixed maturity securities available-for-sale: U.S. treasury $ 8,078 $ 8,078 U.S. government-sponsored agencies 297,949 297,949 Obligations of states and political subdivisions 307,536 307,536 Commercial mortgage-backed 83,980 83,980 Residential mortgage-backed 119,799 119,799 Other asset-backed 24,114 24,114 Corporate 433,560 433,560 Total fixed maturity securities available-for-sale 1,275,016 1,275,016 Equity securities available-for-sale: Common stocks: Financial services 43,522 43,522 Information technology 35,810 35,810 Healthcare 30,595 30,595 Consumer staples 14,127 14,127 Consumer discretionary 20,538 20,538 Energy 16,905 16,905 Industrials 28,489 28,489 Other 16,421 16,421 Non-redeemable preferred stocks 21,708 21,708 Total equity securities available-for-sale 228,115 228,115 Short-term investments 23,613 23,613 Liabilities: Surplus notes 25,000 16,689 |
Summary of assets and liabilities measured on recurring and non-recurring basis | Presented in the tables below are the estimated fair values of the Company’s financial instruments as of March 31, 2018 and December 31, 2017 . March 31, 2018 Fair value measurements using ($ in thousands) Total Investments measured at net asset value (NAV) Quoted Significant Significant Financial instruments reported at fair value on recurring basis: Assets: Fixed maturity securities available-for-sale: U.S. treasury $ 7,956 $ — $ — $ 7,956 $ — U.S. government-sponsored agencies 302,476 — — 302,476 — Obligations of states and political subdivisions 293,931 — — 293,931 — Commercial mortgage-backed 76,660 — — 76,660 — Residential mortgage-backed 132,350 — — 132,350 — Other asset-backed 22,748 — — 22,748 — Corporate 420,352 — — 419,790 562 Total fixed maturity securities available-for-sale 1,256,473 — — 1,255,911 562 Equity investments, at fair value: Common stocks: Financial services 44,895 — 44,892 — 3 Information technology 33,886 — 33,886 — — Healthcare 28,372 — 28,372 — — Consumer staples 14,715 — 14,715 — — Consumer discretionary 21,966 — 21,966 — — Energy 15,620 — 15,620 — — Industrials 25,235 — 25,235 — — Other 15,762 — 15,762 — — Non-redeemable preferred stocks 19,224 — 9,443 9,781 — Investment funds 823 823 — — — Total equity investments 220,498 823 209,891 9,781 3 Short-term investments 21,664 — 21,664 — — Financial instruments not reported at fair value: Liabilities: Surplus notes 15,731 — — — 15,731 December 31, 2017 Fair value measurements using ($ in thousands) Total Investments measured at net asset value (NAV) Quoted Significant Significant Financial instruments reported at fair value on recurring basis: Assets: Fixed maturity securities available-for-sale: U.S. treasury $ 8,078 $ — $ — $ 8,078 $ — U.S. government-sponsored agencies 297,949 — — 297,949 — Obligations of states and political subdivisions 307,536 — — 307,536 — Commercial mortgage-backed 83,980 — — 83,980 — Residential mortgage-backed 119,799 — — 119,799 — Other asset-backed 24,114 — — 24,114 — Corporate 433,560 — — 432,940 620 Total fixed maturity securities available-for-sale 1,275,016 — — 1,274,396 620 Equity securities available-for-sale: Common stocks: Financial services 43,522 — 43,519 — 3 Information technology 35,810 — 35,810 — — Healthcare 30,595 — 30,595 — — Consumer staples 14,127 — 14,127 — — Consumer discretionary 20,538 — 20,538 — — Energy 16,905 — 16,905 — — Industrials 28,489 — 28,489 — — Other 16,421 — 16,421 — — Non-redeemable preferred stocks 21,708 — 9,512 10,196 2,000 Total equity securities available-for-sale 228,115 — 215,916 10,196 2,003 Short-term investments 23,613 — 23,613 — — Financial instruments not reported at fair value: Liabilities: Surplus notes 16,689 — — — 16,689 |
Reconciliation of assets measured at fair value on recurring basis using significant unobservable inputs | Presented in the table below is a reconciliation of the assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three months ended March 31, 2018 and 2017 . Any unrealized gains or losses on these securities are recognized in other comprehensive income (loss). Any gains or losses from settlements, disposals or impairments of these securities are reported as realized investment gains or losses in net income. ($ in thousands) Fair value measurements using significant unobservable (Level 3) inputs Three months ended March 31, 2018 Fixed maturity securities available-for-sale, corporate Equity securities, Total Beginning balance $ 620 $ 3 $ 623 Settlements (56 ) — (56 ) Unrealized losses included in other comprehensive income (loss) (2 ) — (2 ) Balance at March 31, 2018 $ 562 $ 3 $ 565 ($ in thousands) Fair value measurements using significant unobservable (Level 3) inputs Three months ended March 31, 2017 Fixed maturity securities available-for-sale, corporate Equity securities available-for-sale, financial services Equity securities available-for-sale, non-redeemable preferred stocks Total Beginning balance $ 982 $ 3 $ 2,000 $ 2,985 Settlements (50 ) — — (50 ) Unrealized losses included in other comprehensive income (loss) (3 ) — — (3 ) Balance at March 31, 2017 $ 929 $ 3 $ 2,000 $ 2,932 |
INVESTMENTS (Tables)
INVESTMENTS (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Reconciliation of available-for-sale securities from cost basis to fair value | The amortized cost and estimated fair value of securities available-for-sale as of March 31, 2018 and December 31, 2017 are as follows. All fixed maturity securities are classified as available-for-sale and are carried at fair value. March 31, 2018 Amortized Gross Gross Estimated ($ in thousands) Securities available-for-sale: Fixed maturity securities: U.S. treasury $ 8,121 $ — $ 165 $ 7,956 U.S. government-sponsored agencies 313,212 36 10,772 302,476 Obligations of states and political subdivisions 282,149 12,391 609 293,931 Commercial mortgage-backed 79,011 311 2,662 76,660 Residential mortgage-backed 134,691 1,898 4,239 132,350 Other asset-backed 23,148 418 818 22,748 Corporate 418,058 4,742 2,448 420,352 Total fixed maturity securities $ 1,258,390 $ 19,796 $ 21,713 $ 1,256,473 December 31, 2017 Amortized Gross Gross Estimated ($ in thousands) Securities available-for-sale: Fixed maturity securities: U.S. treasury $ 8,115 $ — $ 37 $ 8,078 U.S. government-sponsored agencies 303,932 122 6,105 297,949 Obligations of states and political subdivisions 290,038 17,729 231 307,536 Commercial mortgage-backed 84,058 591 669 83,980 Residential mortgage-backed 120,554 2,479 3,234 119,799 Other asset-backed 23,934 625 445 24,114 Corporate 422,535 11,490 465 433,560 Total fixed maturity securities 1,253,166 33,036 11,186 1,275,016 Equity securities: Common stocks: Financial services 30,103 13,594 175 43,522 Information technology 18,308 17,504 2 35,810 Healthcare 18,877 11,876 158 30,595 Consumer staples 9,275 4,917 65 14,127 Consumer discretionary 10,935 9,640 37 20,538 Energy 12,441 5,381 917 16,905 Industrials 12,746 15,757 14 28,489 Other 11,058 5,363 — 16,421 Non-redeemable preferred stocks 20,531 1,216 39 21,708 Total equity securities 144,274 85,248 1,407 228,115 Total securities available-for-sale $ 1,397,440 $ 118,284 $ 12,593 $ 1,503,131 |
Estimated fair value and gross unrealized losses associated with investment securities | The following tables set forth the estimated fair values and gross unrealized losses associated with investment securities that were in an unrealized loss position recognized in accumulated other comprehensive income as of March 31, 2018 and December 31, 2017 , listed by length of time the securities were consistently in an unrealized loss position. March 31, 2018 Less than twelve months Twelve months or longer Total ($ in thousands) Fair Unrealized Fair Unrealized Fair Unrealized Securities available-for-sale: Fixed maturity securities: U.S. treasury $ 7,956 $ 165 $ — $ — $ 7,956 $ 165 U.S. government-sponsored agencies 159,653 3,831 125,284 6,941 284,937 10,772 Obligations of states and political subdivisions 11,287 78 14,057 531 25,344 609 Commercial mortgage-backed 61,143 1,971 8,280 691 69,423 2,662 Residential mortgage-backed 67,489 1,568 21,858 2,671 89,347 4,239 Other asset-backed 5,158 79 12,963 739 18,121 818 Corporate 167,148 2,263 3,999 185 171,147 2,448 Total fixed maturity securities $ 479,834 $ 9,955 $ 186,441 $ 11,758 $ 666,275 $ 21,713 December 31, 2017 Less than twelve months Twelve months or longer Total ($ in thousands) Fair Unrealized Fair Unrealized Fair Unrealized Securities available-for-sale: Fixed maturity securities: U.S. treasury $ 8,078 $ 37 $ — $ — $ 8,078 $ 37 U.S. government-sponsored agencies 134,284 1,491 127,604 4,614 261,888 6,105 Obligations of states and political subdivisions — — 14,416 231 14,416 231 Commercial mortgage-backed 32,155 221 8,530 448 40,685 669 Residential mortgage-backed 30,003 394 22,948 2,840 52,951 3,234 Other asset-backed — — 13,440 445 13,440 445 Corporate 28,314 329 4,047 136 32,361 465 Total fixed maturity securities 232,834 2,472 190,985 8,714 423,819 11,186 Equity securities: Common stocks: Financial services 4,391 175 — — 4,391 175 Information technology 344 2 — — 344 2 Healthcare 2,532 158 — — 2,532 158 Consumer staples 575 65 — — 575 65 Consumer discretionary 992 37 — — 992 37 Energy 3,181 917 — — 3,181 917 Industrials 3,016 14 — — 3,016 14 Non-redeemable preferred stocks — — 1,961 39 1,961 39 Total equity securities 15,031 1,368 1,961 39 16,992 1,407 Total temporarily impaired securities $ 247,865 $ 3,840 $ 192,946 $ 8,753 $ 440,811 $ 12,593 |
Amortized cost and estimated fair value of fixed maturity securities | The amortized cost and estimated fair values of fixed maturity securities at March 31, 2018 , by contractual maturity, are shown below. 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. ($ in thousands) Amortized Estimated Securities available-for-sale: Due in one year or less $ 35,995 $ 36,421 Due after one year through five years 189,333 191,111 Due after five years through ten years 348,705 347,330 Due after ten years 468,751 470,731 Securities not due at a single maturity date 215,606 210,880 Totals $ 1,258,390 $ 1,256,473 |
Summary of realized investment gains and (losses) | A summary of realized investment gains and (losses) and the change in unrealized investment gains on equity investments is as follows: Three months ended March 31, ($ in thousands) 2018 2017 Fixed maturity securities available-for-sale: Gross realized investment gains $ 234 $ 90 Gross realized investment losses (478 ) (1,206 ) Equity securities: Net realized investment gains, excluding "other-than-temporary" impairments 2,716 2,776 Change in unrealized investment gains (9,854 ) XXXX Other long-term investments, net 1,989 (2,287 ) Totals $ (5,393 ) $ (627 ) |
ACCUMULATED OTHER COMPREHENSI33
ACCUMULATED OTHER COMPREHENSIVE INCOME (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of beginning and ending balances of accumulated other comprehensive income | The following table reconciles, by component, the beginning and ending balances of accumulated other comprehensive income (loss), net of tax. Accumulated other comprehensive income (loss) by component Unrealized Unrecognized pension and postretirement benefit obligations ($ in thousands) Net actuarial loss Prior service credit Total Total Balance at December 31, 2017 $ 83,497 $ (13,074 ) $ 12,961 $ (113 ) $ 83,384 Cumulative adjustment for adoption of financial instruments recognition and measurement changes (66,234 ) — — — (66,234 ) Other comprehensive income (loss) before reclassifications (18,969 ) — — — (18,969 ) Amounts reclassified from accumulated other comprehensive income (loss) 193 81 (622 ) (541 ) (348 ) Other comprehensive income (loss) (18,776 ) 81 (622 ) (541 ) (19,317 ) Balance at March 31, 2018 $ (1,513 ) $ (12,993 ) $ 12,339 $ (654 ) $ (2,167 ) Accumulated other comprehensive income (loss) by component Unrealized Unrecognized pension and postretirement benefit obligations ($ in thousands) Net actuarial loss Prior service credit Total Total Balance at December 31, 2016 $ 49,748 $ (16,299 ) $ 12,632 $ (3,667 ) $ 46,081 Other comprehensive income (loss) before reclassifications 9,705 — — — 9,705 Amounts reclassified from accumulated other comprehensive income (loss) (1,079 ) 239 (511 ) (272 ) (1,351 ) Other comprehensive income (loss) 8,626 239 (511 ) (272 ) 8,354 Balance at March 31, 2017 $ 58,374 $ (16,060 ) $ 12,121 $ (3,939 ) $ 54,435 |
Amounts reclassified out of accumulated other comprehensive income (loss) | The following tables display amounts reclassified out of accumulated other comprehensive income and into net income during the three months ended March 31, 2018 and 2017 , respectively. ($ in thousands) Amounts reclassified from accumulated other comprehensive income (loss) Accumulated other comprehensive Three months ended Affected line item in the Unrealized gains (losses) on investments: Reclassification adjustment for net realized investment gains (losses) included in net income $ (244 ) Net realized investment gains (losses) and, beginning in 2018, change in unrealized investment gains on equity investments Deferred income tax (expense) benefit 51 Total income tax expense (benefit) Net reclassification adjustment (193 ) Net income (loss) Unrecognized pension and postretirement benefit obligations: Reclassification adjustment for amounts amortized into net periodic pension and postretirement benefit income: Net actuarial loss (103 ) (1) Prior service credit 788 (1) Total before tax 685 Deferred income tax (expense) benefit (144 ) Net reclassification adjustment 541 Total reclassification adjustment $ 348 (1) These reclassified components of accumulated other comprehensive income are included in the computation of net periodic pension and postretirement benefit income (see note 7, Employee Retirement Plans, for additional details). ($ in thousands) Amounts reclassified from accumulated other comprehensive income (loss) Accumulated other comprehensive Three months ended March 31, 2017 Affected line item in the Unrealized gains (losses) on investments: Reclassification adjustment for net realized investment gains (losses) included in net income $ 1,660 Net realized investment gains (losses) and, beginning in 2018, change in unrealized investment gains on equity investments Deferred income tax (expense) benefit (581 ) Total income tax expense (benefit) Net reclassification adjustment 1,079 Net income (loss) Unrecognized pension and postretirement benefit obligations: Reclassification adjustment for amounts amortized into net periodic pension and postretirement benefit income: Net actuarial loss (368 ) (1) Prior service credit 787 (1) Total before tax 419 Deferred income tax (expense) benefit (147 ) Net reclassification adjustment 272 Total reclassification adjustment $ 1,351 (1) These reclassified components of accumulated other comprehensive income are included in the computation of net periodic pension and postretirement benefit income (see note 7, Employee Retirement Plans, for additional details). |
BASIS OF PRESENTATION (Details)
BASIS OF PRESENTATION (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Cumulative adjustment for adoption of financial instruments recognition and measurement changes | $ 0 | |
Defined benefit plan net periodic benefit cost other than service cost component | 1,900 | $ 1,300 |
Retained Earnings [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Cumulative adjustment for adoption of financial instruments recognition and measurement changes | $ 66,234 |
TRANSACTIONS WITH AFFILIATES (D
TRANSACTIONS WITH AFFILIATES (Details) - Affiliated Entity [Member] $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||
Mar. 31, 2018USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2018USD ($)Plan | Jun. 30, 2018USD ($)Plan | Dec. 31, 2017USD ($)Plan | Jun. 30, 2017USD ($)Plan | Dec. 31, 2018USD ($)Plan | Dec. 31, 2017USD ($)Plan | |
Related Party Transaction [Line Items] | ||||||||
Ceded premiums earned | $ 100,038 | $ 100,091 | ||||||
Ceded losses and settlement expenses incurred | 52,001 | 63,343 | ||||||
Property and casualty insurance [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Number of reinsurance program treaties | Plan | 1 | 1 | 1 | 1 | 2 | 2 | ||
Ceded premiums earned | 98,725 | 98,878 | ||||||
Ceded losses and settlement expenses incurred | 52,754 | 63,334 | ||||||
Property and casualty insurance [Member] | Annual Aggregate Catastrophe Excess of Loss [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Catastrophe claims, retention amount | $ 15,000 | $ 22,000 | $ 15,000 | $ 20,000 | ||||
Affiliated reinsurance contract first layer limit | 12,000 | 24,000 | 12,000 | 24,000 | ||||
Ceded premiums earned | $ 1,400 | $ 6,000 | $ 1,400 | $ 6,000 | ||||
Ceded losses and settlement expenses incurred | 467 | 573 | ||||||
Reinsurance [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Number of reinsurance program treaties | Plan | 2 | 2 | ||||||
Ceded premiums earned | 1,313 | 1,213 | ||||||
Ceded losses and settlement expenses incurred | $ (753) | $ 9 | ||||||
Reinsurance [Member] | Per Occurrence Catastrophe Excess of Loss [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Catastrophe claims, retention amount | $ 10,000 | $ 10,000 | ||||||
Affiliated reinsurance contract first layer limit | $ 10,000 | $ 10,000 | ||||||
First layer excess of loss coinsurance percentage (in hundreths) | 20.00% | 20.00% | ||||||
Ceded premiums earned | $ 1,600 | $ 1,700 | ||||||
Reinsurance [Member] | Annual Aggregate Catastrophe Excess of Loss [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Catastrophe claims, retention amount | 20,000 | 20,000 | ||||||
Affiliated reinsurance contract first layer limit | $ 100,000 | $ 100,000 | ||||||
First layer excess of loss coinsurance percentage (in hundreths) | 20.00% | 20.00% | ||||||
Ceded premiums earned | $ 3,600 | $ 3,200 | ||||||
Catastrophe event minimum amount | $ 500 | $ 500 |
REINSURANCE (Details)
REINSURANCE (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Premiums written | ||
Net premiums written | $ 158,072 | $ 144,875 |
Premiums earned | ||
Net premiums earned | 155,786 | 144,487 |
Losses and settlement expenses incurred | ||
Net losses and settlement expenses incurred | 110,628 | 96,285 |
Affiliated Entity [Member] | ||
Premiums written | ||
Assumed | 130,201 | 124,800 |
Ceded | (104,337) | (100,944) |
Premiums earned | ||
Assumed | 129,148 | 122,097 |
Ceded | (100,038) | (100,091) |
Losses and settlement expenses incurred | ||
Assumed | 86,325 | 77,106 |
Ceded | (52,001) | (63,343) |
Non Affiliated Entity [Member] | ||
Premiums written | ||
Direct | 100,044 | 96,752 |
Assumed | 42,139 | 34,424 |
Ceded | (9,975) | (10,157) |
Premiums earned | ||
Direct | 95,745 | 95,898 |
Assumed | 42,094 | 35,704 |
Ceded | (11,163) | (9,121) |
Losses and settlement expenses incurred | ||
Direct | 52,287 | 62,761 |
Assumed | 27,407 | 21,992 |
Ceded | $ (3,390) | $ (2,231) |
Property and casualty insurance [Member] | ||
Reinsurance Transactions For Insurance Companies, by Product Segment [Line Items] | ||
Percentage of pool participation (in hundredths) | 30.00% | 30.00% |
Premiums written | ||
Net premiums written | $ 120,269 | $ 114,607 |
Premiums earned | ||
Net premiums earned | 118,632 | 113,648 |
Losses and settlement expenses incurred | ||
Net losses and settlement expenses incurred | 83,501 | 75,520 |
Property and casualty insurance [Member] | Affiliated Entity [Member] | ||
Premiums written | ||
Assumed | 130,201 | 124,800 |
Ceded | (103,024) | (99,731) |
Premiums earned | ||
Assumed | 129,148 | 122,097 |
Ceded | (98,725) | (98,878) |
Losses and settlement expenses incurred | ||
Assumed | 85,967 | 76,742 |
Ceded | (52,754) | (63,334) |
Property and casualty insurance [Member] | Non Affiliated Entity [Member] | ||
Premiums written | ||
Direct | 100,044 | 96,752 |
Assumed | 1,018 | 919 |
Ceded | (7,970) | (8,133) |
Premiums earned | ||
Direct | 95,745 | 95,898 |
Assumed | 1,002 | 1,015 |
Ceded | (8,538) | (6,484) |
Losses and settlement expenses incurred | ||
Direct | 52,287 | 62,761 |
Assumed | 992 | 752 |
Ceded | (2,991) | (1,401) |
Reinsurance [Member] | ||
Premiums written | ||
Net premiums written | 37,803 | 30,268 |
Premiums earned | ||
Net premiums earned | 37,154 | 30,839 |
Losses and settlement expenses incurred | ||
Net losses and settlement expenses incurred | 27,127 | 20,765 |
Reinsurance [Member] | Affiliated Entity [Member] | ||
Premiums written | ||
Assumed | 0 | 0 |
Ceded | (1,313) | (1,213) |
Premiums earned | ||
Assumed | 0 | 0 |
Ceded | (1,313) | (1,213) |
Losses and settlement expenses incurred | ||
Assumed | 358 | 364 |
Ceded | 753 | (9) |
Reinsurance [Member] | Non Affiliated Entity [Member] | ||
Premiums written | ||
Direct | 0 | 0 |
Assumed | 41,121 | 33,505 |
Ceded | (2,005) | (2,024) |
Premiums earned | ||
Direct | 0 | 0 |
Assumed | 41,092 | 34,689 |
Ceded | (2,625) | (2,637) |
Losses and settlement expenses incurred | ||
Direct | 0 | 0 |
Assumed | 26,415 | 21,240 |
Ceded | $ (399) | $ (830) |
LIABILITY FOR LOSSES AND SETTEL
LIABILITY FOR LOSSES AND SETTELEMT EXPENSES (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Reconciliation of beginning and ending reserves for losses and settlement expenses [Roll Forward] | ||
Gross reserves at beginning of year | $ 732,612 | $ 690,532 |
Re-evaluation due to foreign currency exchange rates | 525 | (1,913) |
Less ceded reserves at beginning of year | 30,923 | 20,664 |
Net reserves at beginning of year | 701,164 | 671,781 |
Incurred losses and settlement expenses related to: | ||
Current year | 116,204 | 111,189 |
Prior years | (5,576) | (14,904) |
Total incurred losses and settlement expenses | 110,628 | 96,285 |
Paid losses and settlement expenses related to: | ||
Current year | 24,262 | 22,923 |
Prior years | 81,877 | 69,826 |
Total paid losses and settlement expenses | 106,139 | 92,749 |
Net reserves at end of period | 705,653 | 675,317 |
Plus ceded reserves at end of period | 30,549 | 20,788 |
Re-evaluation due to foreign currency exchange rates | 853 | (976) |
Gross reserves at end of period | 737,055 | 695,129 |
Property and casualty insurance [Member] | ||
Incurred losses and settlement expenses related to: | ||
Prior years | $ (2,100) | $ (8,500) |
Percentage change in loss and settlement expense reserves for prior accident years (in hundredths) | (0.40%) | (1.70%) |
Reinsurance [Member] | ||
Incurred losses and settlement expenses related to: | ||
Prior years | $ (3,400) | $ (6,400) |
Percentage change in loss and settlement expense reserves for prior accident years (in hundredths) | (1.50%) | (3.20%) |
SEGMENT INFORMATION - Summarize
SEGMENT INFORMATION - Summarized financial information by segment (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Reconciliation of operating profit loss from segment to consolidated | |||
Premiums earned | $ 155,786 | $ 144,487 | |
SAP underwriting profit (loss) | (7,473) | 653 | |
GAAP adjustments | 364 | (2,618) | |
GAAP underwriting profit (loss) | (7,109) | (1,965) | |
Net investment income | 11,371 | 11,007 | |
Net realized investment gains (losses) and, beginning in 2018, change in unrealized investment gains on equity investments | (5,393) | (627) | |
Other income (loss) | 1,615 | 870 | |
Interest expense | 142 | 84 | |
Other expenses | 870 | 761 | |
Income (loss) before income tax expense (benefit) | (528) | 8,440 | |
Reconciliation of assets from segment to consolidated | |||
Assets | 2,248,068 | $ 2,289,419 | |
Eliminations | (576,656) | (599,036) | |
Reclassifications | (6,259) | (8,443) | |
Total assets | 1,665,153 | 1,681,940 | |
Property and casualty insurance [Member] | |||
Reconciliation of operating profit loss from segment to consolidated | |||
Premiums earned | 118,632 | 113,648 | |
SAP underwriting profit (loss) | (9,036) | (2,594) | |
GAAP adjustments | 262 | (2,287) | |
GAAP underwriting profit (loss) | (8,774) | (4,881) | |
Net investment income | 8,148 | 8,015 | |
Net realized investment gains (losses) and, beginning in 2018, change in unrealized investment gains on equity investments | (3,293) | (597) | |
Other income (loss) | 2,051 | 1,441 | |
Interest expense | 142 | 84 | |
Other expenses | 233 | 179 | |
Income (loss) before income tax expense (benefit) | (2,243) | 3,715 | |
Reconciliation of assets from segment to consolidated | |||
Assets | 1,185,069 | 1,200,636 | |
Eliminations | 0 | 0 | |
Reclassifications | (316) | (1,393) | |
Total assets | 1,184,753 | 1,199,243 | |
Reinsurance [Member] | |||
Reconciliation of operating profit loss from segment to consolidated | |||
Premiums earned | 37,154 | 30,839 | |
SAP underwriting profit (loss) | 1,563 | 3,247 | |
GAAP adjustments | 102 | (331) | |
GAAP underwriting profit (loss) | 1,665 | 2,916 | |
Net investment income | 3,218 | 2,983 | |
Net realized investment gains (losses) and, beginning in 2018, change in unrealized investment gains on equity investments | (2,100) | (30) | |
Other income (loss) | (436) | (571) | |
Interest expense | 0 | 0 | |
Other expenses | 0 | 0 | |
Income (loss) before income tax expense (benefit) | 2,347 | 5,298 | |
Reconciliation of assets from segment to consolidated | |||
Assets | 481,257 | 484,678 | |
Eliminations | 0 | 0 | |
Reclassifications | (5,045) | (6,273) | |
Total assets | 476,212 | 478,405 | |
Parent company [Member] | |||
Reconciliation of operating profit loss from segment to consolidated | |||
Premiums earned | 0 | 0 | |
SAP underwriting profit (loss) | 0 | 0 | |
GAAP adjustments | 0 | 0 | |
GAAP underwriting profit (loss) | 0 | 0 | |
Net investment income | 5 | 9 | |
Net realized investment gains (losses) and, beginning in 2018, change in unrealized investment gains on equity investments | 0 | 0 | |
Other income (loss) | 0 | 0 | |
Interest expense | 0 | 0 | |
Other expenses | 637 | 582 | |
Income (loss) before income tax expense (benefit) | (632) | $ (573) | |
Reconciliation of assets from segment to consolidated | |||
Assets | 581,742 | 604,105 | |
Eliminations | (576,656) | (599,036) | |
Reclassifications | (898) | (777) | |
Total assets | $ 4,188 | $ 4,292 |
SEGMENT INFORMATION - Net premi
SEGMENT INFORMATION - Net premiums earned by segment and lines of insurance (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Revenue from External Customer [Line Items] | ||
Premiums earned | $ 155,786 | $ 144,487 |
Property and casualty insurance [Member] | ||
Revenue from External Customer [Line Items] | ||
Premiums earned | 118,632 | 113,648 |
Property and casualty insurance [Member] | Commercial Lines [Member] | ||
Revenue from External Customer [Line Items] | ||
Premiums earned | 109,123 | 104,474 |
Property and casualty insurance [Member] | Commercial Lines [Member] | Automobile Insurance L O B [Member] | ||
Revenue from External Customer [Line Items] | ||
Premiums earned | 30,644 | 28,032 |
Property and casualty insurance [Member] | Commercial Lines [Member] | Property Insurance L O B [Member] | ||
Revenue from External Customer [Line Items] | ||
Premiums earned | 26,429 | 25,502 |
Property and casualty insurance [Member] | Commercial Lines [Member] | Workers' Compensation [Member] | ||
Revenue from External Customer [Line Items] | ||
Premiums earned | 24,902 | 24,703 |
Property and casualty insurance [Member] | Commercial Lines [Member] | Other Liability [Member] | ||
Revenue from External Customer [Line Items] | ||
Premiums earned | 24,962 | 24,128 |
Property and casualty insurance [Member] | Commercial Lines [Member] | Other Insurance L O B [Member] | ||
Revenue from External Customer [Line Items] | ||
Premiums earned | 2,186 | 2,109 |
Property and casualty insurance [Member] | Personal Lines [Member] | ||
Revenue from External Customer [Line Items] | ||
Premiums earned | 9,509 | 9,174 |
Reinsurance [Member] | ||
Revenue from External Customer [Line Items] | ||
Premiums earned | 37,154 | 30,839 |
Reinsurance [Member] | Assumed Pro Rata [Member] | ||
Revenue from External Customer [Line Items] | ||
Premiums earned | 13,073 | 10,435 |
Reinsurance [Member] | Assumed Excess of Loss [Member] | ||
Revenue from External Customer [Line Items] | ||
Premiums earned | $ 24,081 | $ 20,404 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Income tax expense (benefit) reconciliation [Abstract] | |||
United States federal corporate tax rate (in hundredths) | 21.00% | 35.00% | |
Computed expected income tax expense (benefit) | $ (111) | $ 2,954 | |
Increases (decreases) in tax resulting from: | |||
Tax-exempt interest income | (310) | (705) | |
Dividends received deduction | (123) | (306) | |
Proration of tax-exempt interest and dividends received deduction | 108 | 152 | |
Other, net | (16) | (459) | |
Total income tax expense (benefit) | (452) | $ 1,636 | |
Provision for uncertain tax positions | $ 0 | $ 0 |
EMPLOYEE RETIREMENT PLANS (Deta
EMPLOYEE RETIREMENT PLANS (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Pension plans [Member] | Emc Insurance Companies [Member] | ||
Components of net periodic benefit cost [Abstract] | ||
Service cost | $ 4,126 | $ 3,860 |
Interest cost | 2,665 | 2,795 |
Expected return on plan assets | (5,978) | (5,191) |
Amortization of net actuarial loss | 125 | 908 |
Amortization of prior service cost (credit) | 0 | 5 |
Net periodic benefit cost (income) | 938 | 2,377 |
Pension plans [Member] | EMC Insurance Group, Inc. [Member] | ||
Components of net periodic benefit cost [Abstract] | ||
Net periodic benefit cost (income) | 282 | 713 |
Entity's share of estimated contributions to employee benefit plan | 2,400 | |
Postretirement benefit plans [Member] | Emc Insurance Companies [Member] | ||
Components of net periodic benefit cost [Abstract] | ||
Service cost | 368 | 341 |
Interest cost | 521 | 570 |
Expected return on plan assets | (1,204) | (1,078) |
Amortization of net actuarial loss | 234 | 343 |
Amortization of prior service cost (credit) | (2,782) | (2,789) |
Net periodic benefit cost (income) | (2,863) | (2,613) |
Postretirement benefit plans [Member] | EMC Insurance Group, Inc. [Member] | ||
Components of net periodic benefit cost [Abstract] | ||
Net periodic benefit cost (income) | (806) | $ (736) |
Entity's share of estimated contributions to employee benefit plan | $ 0 |
STOCK-BASED COMPENSATION (Detai
STOCK-BASED COMPENSATION (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock repurchased and retired during period, shares | 30,523 | |
Average cost per share of stock repurchased | $ 26.30 | |
Recognized compensation expense | $ 413 | $ (323) |
Recognized compensation expense, net of tax | $ 326 | $ (210) |
Restricted Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of restricted stock shares vested during period (in shares) | 89,550 | |
Restricted Stock Units (RSUs) [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of restricted stock awards or units granted during period (in shares) | 120,251 | |
Stock Option [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Options exercised during period (in shares) | 51,250 | |
Weighted average exercise price of options exercised during period (in dollars per share) | $ 14.95 |
DISCLOSURES ABOUT THE FAIR VA43
DISCLOSURES ABOUT THE FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018USD ($)Security | Dec. 31, 2017USD ($)Security | |
Assets [Abstract] | ||
Fixed maturity securities available-for-sale | $ 1,256,473 | $ 1,275,016 |
Equity investments, at fair value | 220,498 | |
Equity securities available-for-sale | 228,115 | |
Equity investments, at alternative measurement of cost less impairments | 2,000 | 0 |
Short-term investments | 21,664 | 23,613 |
Liabilities [Abstract] | ||
Surplus notes | $ 25,000 | $ 25,000 |
Period for surplus notes included in assumptions | 25 years | 25 years |
Current interest rate on surplus notes | 2.73% | 1.35% |
Debt Securities [Member] | ||
Assets [Abstract] | ||
Fixed maturity securities available-for-sale | $ 1,256,473 | $ 1,275,016 |
Number of broker quoted securities | Security | 0 | 0 |
Number of securities not priced by independent pricing service | Security | 6 | 8 |
US Treasury Securities [Member] | ||
Assets [Abstract] | ||
Fixed maturity securities available-for-sale | $ 7,956 | $ 8,078 |
US Government-sponsored Enterprises Debt Securities [Member] | ||
Assets [Abstract] | ||
Fixed maturity securities available-for-sale | 302,476 | 297,949 |
US States and Political Subdivisions Debt Securities [Member] | ||
Assets [Abstract] | ||
Fixed maturity securities available-for-sale | 293,931 | 307,536 |
Commercial Mortgage Backed Securities [Member] | ||
Assets [Abstract] | ||
Fixed maturity securities available-for-sale | 76,660 | 83,980 |
Residential Mortgage Backed Securities [Member] | ||
Assets [Abstract] | ||
Fixed maturity securities available-for-sale | 132,350 | 119,799 |
Collateralized Debt Obligations [Member] | ||
Assets [Abstract] | ||
Fixed maturity securities available-for-sale | 22,748 | 24,114 |
Corporate Debt Securities [Member] | ||
Assets [Abstract] | ||
Fixed maturity securities available-for-sale | 420,352 | 433,560 |
Equity Securities [Member] | ||
Assets [Abstract] | ||
Equity securities available-for-sale | 228,115 | |
Common stocks Financial services [Member] | ||
Assets [Abstract] | ||
Equity securities available-for-sale | 43,522 | |
Common stocks Information technology [Member] | ||
Assets [Abstract] | ||
Equity securities available-for-sale | 35,810 | |
Common stocks Healthcare [Member] | ||
Assets [Abstract] | ||
Equity securities available-for-sale | 30,595 | |
Common stocks Consumer staples [Member] | ||
Assets [Abstract] | ||
Equity securities available-for-sale | 14,127 | |
Common stocks Consumer discretionary [Member] | ||
Assets [Abstract] | ||
Equity securities available-for-sale | 20,538 | |
Common stocks Energy [Member] | ||
Assets [Abstract] | ||
Equity securities available-for-sale | 16,905 | |
Common stocks Industrials [Member] | ||
Assets [Abstract] | ||
Equity securities available-for-sale | 28,489 | |
Common stocks Other [Member] | ||
Assets [Abstract] | ||
Equity securities available-for-sale | 16,421 | |
Nonredeemable Preferred Stock [Member] | ||
Assets [Abstract] | ||
Equity securities available-for-sale | 21,708 | |
Carrying amount [Member] | ||
Assets [Abstract] | ||
Short-term investments | 21,664 | 23,613 |
Liabilities [Abstract] | ||
Surplus notes | 25,000 | 25,000 |
Carrying amount [Member] | Debt Securities [Member] | ||
Assets [Abstract] | ||
Fixed maturity securities available-for-sale | 1,256,473 | 1,275,016 |
Carrying amount [Member] | US Treasury Securities [Member] | ||
Assets [Abstract] | ||
Fixed maturity securities available-for-sale | 7,956 | 8,078 |
Carrying amount [Member] | US Government-sponsored Enterprises Debt Securities [Member] | ||
Assets [Abstract] | ||
Fixed maturity securities available-for-sale | 302,476 | 297,949 |
Carrying amount [Member] | US States and Political Subdivisions Debt Securities [Member] | ||
Assets [Abstract] | ||
Fixed maturity securities available-for-sale | 293,931 | 307,536 |
Carrying amount [Member] | Commercial Mortgage Backed Securities [Member] | ||
Assets [Abstract] | ||
Fixed maturity securities available-for-sale | 76,660 | 83,980 |
Carrying amount [Member] | Residential Mortgage Backed Securities [Member] | ||
Assets [Abstract] | ||
Fixed maturity securities available-for-sale | 132,350 | 119,799 |
Carrying amount [Member] | Collateralized Debt Obligations [Member] | ||
Assets [Abstract] | ||
Fixed maturity securities available-for-sale | 22,748 | 24,114 |
Carrying amount [Member] | Corporate Debt Securities [Member] | ||
Assets [Abstract] | ||
Fixed maturity securities available-for-sale | 420,352 | 433,560 |
Carrying amount [Member] | Equity Securities [Member] | ||
Assets [Abstract] | ||
Equity investments, at fair value | 220,498 | |
Equity securities available-for-sale | 228,115 | |
Carrying amount [Member] | Common stocks Financial services [Member] | ||
Assets [Abstract] | ||
Equity investments, at fair value | 44,895 | |
Equity securities available-for-sale | 43,522 | |
Carrying amount [Member] | Common stocks Information technology [Member] | ||
Assets [Abstract] | ||
Equity investments, at fair value | 33,886 | |
Equity securities available-for-sale | 35,810 | |
Carrying amount [Member] | Common stocks Healthcare [Member] | ||
Assets [Abstract] | ||
Equity investments, at fair value | 28,372 | |
Equity securities available-for-sale | 30,595 | |
Carrying amount [Member] | Common stocks Consumer staples [Member] | ||
Assets [Abstract] | ||
Equity investments, at fair value | 14,715 | |
Equity securities available-for-sale | 14,127 | |
Carrying amount [Member] | Common stocks Consumer discretionary [Member] | ||
Assets [Abstract] | ||
Equity investments, at fair value | 21,966 | |
Equity securities available-for-sale | 20,538 | |
Carrying amount [Member] | Common stocks Energy [Member] | ||
Assets [Abstract] | ||
Equity investments, at fair value | 15,620 | |
Equity securities available-for-sale | 16,905 | |
Carrying amount [Member] | Common stocks Industrials [Member] | ||
Assets [Abstract] | ||
Equity investments, at fair value | 25,235 | |
Equity securities available-for-sale | 28,489 | |
Carrying amount [Member] | Common stocks Other [Member] | ||
Assets [Abstract] | ||
Equity investments, at fair value | 15,762 | |
Equity securities available-for-sale | 16,421 | |
Carrying amount [Member] | Nonredeemable Preferred Stock [Member] | ||
Assets [Abstract] | ||
Equity investments, at fair value | 19,224 | |
Equity securities available-for-sale | 21,708 | |
Carrying amount [Member] | Investment funds [Member] | ||
Assets [Abstract] | ||
Equity investments, at fair value | 823 | |
Estimated fair value [Member] | ||
Assets [Abstract] | ||
Short-term investments | 21,664 | 23,613 |
Liabilities [Abstract] | ||
Surplus notes | 15,731 | 16,689 |
Estimated fair value [Member] | Debt Securities [Member] | ||
Assets [Abstract] | ||
Fixed maturity securities available-for-sale | 1,256,473 | 1,275,016 |
Estimated fair value [Member] | US Treasury Securities [Member] | ||
Assets [Abstract] | ||
Fixed maturity securities available-for-sale | 7,956 | 8,078 |
Estimated fair value [Member] | US Government-sponsored Enterprises Debt Securities [Member] | ||
Assets [Abstract] | ||
Fixed maturity securities available-for-sale | 302,476 | 297,949 |
Estimated fair value [Member] | US States and Political Subdivisions Debt Securities [Member] | ||
Assets [Abstract] | ||
Fixed maturity securities available-for-sale | 293,931 | 307,536 |
Estimated fair value [Member] | Commercial Mortgage Backed Securities [Member] | ||
Assets [Abstract] | ||
Fixed maturity securities available-for-sale | 76,660 | 83,980 |
Estimated fair value [Member] | Residential Mortgage Backed Securities [Member] | ||
Assets [Abstract] | ||
Fixed maturity securities available-for-sale | 132,350 | 119,799 |
Estimated fair value [Member] | Collateralized Debt Obligations [Member] | ||
Assets [Abstract] | ||
Fixed maturity securities available-for-sale | 22,748 | 24,114 |
Estimated fair value [Member] | Corporate Debt Securities [Member] | ||
Assets [Abstract] | ||
Fixed maturity securities available-for-sale | 420,352 | 433,560 |
Estimated fair value [Member] | Equity Securities [Member] | ||
Assets [Abstract] | ||
Equity investments, at fair value | 220,498 | |
Equity securities available-for-sale | 228,115 | |
Estimated fair value [Member] | Common stocks Financial services [Member] | ||
Assets [Abstract] | ||
Equity investments, at fair value | 44,895 | |
Equity securities available-for-sale | 43,522 | |
Estimated fair value [Member] | Common stocks Information technology [Member] | ||
Assets [Abstract] | ||
Equity investments, at fair value | 33,886 | |
Equity securities available-for-sale | 35,810 | |
Estimated fair value [Member] | Common stocks Healthcare [Member] | ||
Assets [Abstract] | ||
Equity investments, at fair value | 28,372 | |
Equity securities available-for-sale | 30,595 | |
Estimated fair value [Member] | Common stocks Consumer staples [Member] | ||
Assets [Abstract] | ||
Equity investments, at fair value | 14,715 | |
Equity securities available-for-sale | 14,127 | |
Estimated fair value [Member] | Common stocks Consumer discretionary [Member] | ||
Assets [Abstract] | ||
Equity investments, at fair value | 21,966 | |
Equity securities available-for-sale | 20,538 | |
Estimated fair value [Member] | Common stocks Energy [Member] | ||
Assets [Abstract] | ||
Equity investments, at fair value | 15,620 | |
Equity securities available-for-sale | 16,905 | |
Estimated fair value [Member] | Common stocks Industrials [Member] | ||
Assets [Abstract] | ||
Equity investments, at fair value | 25,235 | |
Equity securities available-for-sale | 28,489 | |
Estimated fair value [Member] | Common stocks Other [Member] | ||
Assets [Abstract] | ||
Equity investments, at fair value | 15,762 | |
Equity securities available-for-sale | 16,421 | |
Estimated fair value [Member] | Nonredeemable Preferred Stock [Member] | ||
Assets [Abstract] | ||
Equity investments, at fair value | 19,224 | |
Equity securities available-for-sale | $ 21,708 | |
Estimated fair value [Member] | Investment funds [Member] | ||
Assets [Abstract] | ||
Equity investments, at fair value | $ 823 |
DISCLOSURES ABOUT THE FAIR VA44
DISCLOSURES ABOUT THE FAIR VALUE OF FINANCIAL INSTRUMENTS, Recurring Measurement Inputs (Details) $ in Thousands | Mar. 31, 2018USD ($)Security | Dec. 31, 2017USD ($)Security |
Assets [Abstract] | ||
Fixed maturity securities available-for-sale | $ 1,256,473 | $ 1,275,016 |
Equity investments, at fair value | 220,498 | |
Equity securities available-for-sale | 228,115 | |
Short-term investments | 21,664 | 23,613 |
Liabilities [Abstract] | ||
Surplus notes | 25,000 | 25,000 |
Debt Securities [Member] | ||
Assets [Abstract] | ||
Fixed maturity securities available-for-sale | 1,256,473 | 1,275,016 |
US Treasury Securities [Member] | ||
Assets [Abstract] | ||
Fixed maturity securities available-for-sale | 7,956 | 8,078 |
US Government-sponsored Enterprises Debt Securities [Member] | ||
Assets [Abstract] | ||
Fixed maturity securities available-for-sale | 302,476 | 297,949 |
US States and Political Subdivisions Debt Securities [Member] | ||
Assets [Abstract] | ||
Fixed maturity securities available-for-sale | 293,931 | 307,536 |
Commercial Mortgage Backed Securities [Member] | ||
Assets [Abstract] | ||
Fixed maturity securities available-for-sale | 76,660 | 83,980 |
Residential Mortgage Backed Securities [Member] | ||
Assets [Abstract] | ||
Fixed maturity securities available-for-sale | 132,350 | 119,799 |
Collateralized Debt Obligations [Member] | ||
Assets [Abstract] | ||
Fixed maturity securities available-for-sale | 22,748 | 24,114 |
Corporate Debt Securities [Member] | ||
Assets [Abstract] | ||
Fixed maturity securities available-for-sale | 420,352 | 433,560 |
Equity Securities [Member] | ||
Assets [Abstract] | ||
Equity securities available-for-sale | 228,115 | |
Common stocks Financial services [Member] | ||
Assets [Abstract] | ||
Equity securities available-for-sale | 43,522 | |
Common stocks Information technology [Member] | ||
Assets [Abstract] | ||
Equity securities available-for-sale | 35,810 | |
Common stocks Healthcare [Member] | ||
Assets [Abstract] | ||
Equity securities available-for-sale | 30,595 | |
Common stocks Consumer staples [Member] | ||
Assets [Abstract] | ||
Equity securities available-for-sale | 14,127 | |
Common stocks Consumer discretionary [Member] | ||
Assets [Abstract] | ||
Equity securities available-for-sale | 20,538 | |
Common stocks Energy [Member] | ||
Assets [Abstract] | ||
Equity securities available-for-sale | 16,905 | |
Common stocks Industrials [Member] | ||
Assets [Abstract] | ||
Equity securities available-for-sale | 28,489 | |
Common stocks Other [Member] | ||
Assets [Abstract] | ||
Equity securities available-for-sale | 16,421 | |
Nonredeemable Preferred Stock [Member] | ||
Assets [Abstract] | ||
Equity securities available-for-sale | 21,708 | |
Recurring [Member] | ||
Assets [Abstract] | ||
Short-term investments | 21,664 | 23,613 |
Recurring [Member] | Debt Securities [Member] | ||
Assets [Abstract] | ||
Fixed maturity securities available-for-sale | 1,256,473 | 1,275,016 |
Recurring [Member] | US Treasury Securities [Member] | ||
Assets [Abstract] | ||
Fixed maturity securities available-for-sale | 7,956 | 8,078 |
Recurring [Member] | US Government-sponsored Enterprises Debt Securities [Member] | ||
Assets [Abstract] | ||
Fixed maturity securities available-for-sale | 302,476 | 297,949 |
Recurring [Member] | US States and Political Subdivisions Debt Securities [Member] | ||
Assets [Abstract] | ||
Fixed maturity securities available-for-sale | 293,931 | 307,536 |
Recurring [Member] | Commercial Mortgage Backed Securities [Member] | ||
Assets [Abstract] | ||
Fixed maturity securities available-for-sale | 76,660 | 83,980 |
Recurring [Member] | Residential Mortgage Backed Securities [Member] | ||
Assets [Abstract] | ||
Fixed maturity securities available-for-sale | 132,350 | 119,799 |
Recurring [Member] | Collateralized Debt Obligations [Member] | ||
Assets [Abstract] | ||
Fixed maturity securities available-for-sale | 22,748 | 24,114 |
Recurring [Member] | Corporate Debt Securities [Member] | ||
Assets [Abstract] | ||
Fixed maturity securities available-for-sale | 420,352 | 433,560 |
Recurring [Member] | Equity Securities [Member] | ||
Assets [Abstract] | ||
Equity investments, at fair value | 220,498 | |
Equity securities available-for-sale | 228,115 | |
Recurring [Member] | Common stocks Financial services [Member] | ||
Assets [Abstract] | ||
Equity investments, at fair value | 44,895 | |
Equity securities available-for-sale | 43,522 | |
Recurring [Member] | Common stocks Information technology [Member] | ||
Assets [Abstract] | ||
Equity investments, at fair value | 33,886 | |
Equity securities available-for-sale | 35,810 | |
Recurring [Member] | Common stocks Healthcare [Member] | ||
Assets [Abstract] | ||
Equity investments, at fair value | 28,372 | |
Equity securities available-for-sale | 30,595 | |
Recurring [Member] | Common stocks Consumer staples [Member] | ||
Assets [Abstract] | ||
Equity investments, at fair value | 14,715 | |
Equity securities available-for-sale | 14,127 | |
Recurring [Member] | Common stocks Consumer discretionary [Member] | ||
Assets [Abstract] | ||
Equity investments, at fair value | 21,966 | |
Equity securities available-for-sale | 20,538 | |
Recurring [Member] | Common stocks Energy [Member] | ||
Assets [Abstract] | ||
Equity investments, at fair value | 15,620 | |
Equity securities available-for-sale | 16,905 | |
Recurring [Member] | Common stocks Industrials [Member] | ||
Assets [Abstract] | ||
Equity investments, at fair value | 25,235 | |
Equity securities available-for-sale | 28,489 | |
Recurring [Member] | Common stocks Other [Member] | ||
Assets [Abstract] | ||
Equity investments, at fair value | 15,762 | |
Equity securities available-for-sale | 16,421 | |
Recurring [Member] | Nonredeemable Preferred Stock [Member] | ||
Assets [Abstract] | ||
Equity investments, at fair value | 19,224 | |
Equity securities available-for-sale | 21,708 | |
Recurring [Member] | Investment funds [Member] | ||
Assets [Abstract] | ||
Equity investments, at fair value | 823 | |
Recurring [Member] | Investments measured at net asset value (NAV) | ||
Assets [Abstract] | ||
Short-term investments | 0 | 0 |
Recurring [Member] | Investments measured at net asset value (NAV) | Debt Securities [Member] | ||
Assets [Abstract] | ||
Fixed maturity securities available-for-sale | 0 | 0 |
Recurring [Member] | Investments measured at net asset value (NAV) | US Treasury Securities [Member] | ||
Assets [Abstract] | ||
Fixed maturity securities available-for-sale | 0 | 0 |
Recurring [Member] | Investments measured at net asset value (NAV) | US Government-sponsored Enterprises Debt Securities [Member] | ||
Assets [Abstract] | ||
Fixed maturity securities available-for-sale | 0 | 0 |
Recurring [Member] | Investments measured at net asset value (NAV) | US States and Political Subdivisions Debt Securities [Member] | ||
Assets [Abstract] | ||
Fixed maturity securities available-for-sale | 0 | 0 |
Recurring [Member] | Investments measured at net asset value (NAV) | Commercial Mortgage Backed Securities [Member] | ||
Assets [Abstract] | ||
Fixed maturity securities available-for-sale | 0 | 0 |
Recurring [Member] | Investments measured at net asset value (NAV) | Residential Mortgage Backed Securities [Member] | ||
Assets [Abstract] | ||
Fixed maturity securities available-for-sale | 0 | 0 |
Recurring [Member] | Investments measured at net asset value (NAV) | Collateralized Debt Obligations [Member] | ||
Assets [Abstract] | ||
Fixed maturity securities available-for-sale | 0 | 0 |
Recurring [Member] | Investments measured at net asset value (NAV) | Corporate Debt Securities [Member] | ||
Assets [Abstract] | ||
Fixed maturity securities available-for-sale | 0 | 0 |
Recurring [Member] | Investments measured at net asset value (NAV) | Equity Securities [Member] | ||
Assets [Abstract] | ||
Equity investments, at fair value | 823 | |
Equity securities available-for-sale | 0 | |
Recurring [Member] | Investments measured at net asset value (NAV) | Common stocks Financial services [Member] | ||
Assets [Abstract] | ||
Equity investments, at fair value | 0 | |
Equity securities available-for-sale | 0 | |
Recurring [Member] | Investments measured at net asset value (NAV) | Common stocks Information technology [Member] | ||
Assets [Abstract] | ||
Equity investments, at fair value | 0 | |
Equity securities available-for-sale | 0 | |
Recurring [Member] | Investments measured at net asset value (NAV) | Common stocks Healthcare [Member] | ||
Assets [Abstract] | ||
Equity investments, at fair value | 0 | |
Equity securities available-for-sale | 0 | |
Recurring [Member] | Investments measured at net asset value (NAV) | Common stocks Consumer staples [Member] | ||
Assets [Abstract] | ||
Equity investments, at fair value | 0 | |
Equity securities available-for-sale | 0 | |
Recurring [Member] | Investments measured at net asset value (NAV) | Common stocks Consumer discretionary [Member] | ||
Assets [Abstract] | ||
Equity investments, at fair value | 0 | |
Equity securities available-for-sale | 0 | |
Recurring [Member] | Investments measured at net asset value (NAV) | Common stocks Energy [Member] | ||
Assets [Abstract] | ||
Equity investments, at fair value | 0 | |
Equity securities available-for-sale | 0 | |
Recurring [Member] | Investments measured at net asset value (NAV) | Common stocks Industrials [Member] | ||
Assets [Abstract] | ||
Equity investments, at fair value | 0 | |
Equity securities available-for-sale | 0 | |
Recurring [Member] | Investments measured at net asset value (NAV) | Common stocks Other [Member] | ||
Assets [Abstract] | ||
Equity investments, at fair value | 0 | |
Equity securities available-for-sale | 0 | |
Recurring [Member] | Investments measured at net asset value (NAV) | Nonredeemable Preferred Stock [Member] | ||
Assets [Abstract] | ||
Equity investments, at fair value | 0 | |
Equity securities available-for-sale | 0 | |
Recurring [Member] | Investments measured at net asset value (NAV) | Investment funds [Member] | ||
Assets [Abstract] | ||
Equity investments, at fair value | 823 | |
Recurring [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | ||
Assets [Abstract] | ||
Short-term investments | 21,664 | 23,613 |
Recurring [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | Debt Securities [Member] | ||
Assets [Abstract] | ||
Fixed maturity securities available-for-sale | 0 | 0 |
Recurring [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | US Treasury Securities [Member] | ||
Assets [Abstract] | ||
Fixed maturity securities available-for-sale | 0 | 0 |
Recurring [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | US Government-sponsored Enterprises Debt Securities [Member] | ||
Assets [Abstract] | ||
Fixed maturity securities available-for-sale | 0 | 0 |
Recurring [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | US States and Political Subdivisions Debt Securities [Member] | ||
Assets [Abstract] | ||
Fixed maturity securities available-for-sale | 0 | 0 |
Recurring [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | Commercial Mortgage Backed Securities [Member] | ||
Assets [Abstract] | ||
Fixed maturity securities available-for-sale | 0 | 0 |
Recurring [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | Residential Mortgage Backed Securities [Member] | ||
Assets [Abstract] | ||
Fixed maturity securities available-for-sale | 0 | 0 |
Recurring [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | Collateralized Debt Obligations [Member] | ||
Assets [Abstract] | ||
Fixed maturity securities available-for-sale | 0 | 0 |
Recurring [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | Corporate Debt Securities [Member] | ||
Assets [Abstract] | ||
Fixed maturity securities available-for-sale | 0 | 0 |
Recurring [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | Equity Securities [Member] | ||
Assets [Abstract] | ||
Equity investments, at fair value | 209,891 | |
Equity securities available-for-sale | 215,916 | |
Recurring [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | Common stocks Financial services [Member] | ||
Assets [Abstract] | ||
Equity investments, at fair value | 44,892 | |
Equity securities available-for-sale | 43,519 | |
Recurring [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | Common stocks Information technology [Member] | ||
Assets [Abstract] | ||
Equity investments, at fair value | 33,886 | |
Equity securities available-for-sale | 35,810 | |
Recurring [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | Common stocks Healthcare [Member] | ||
Assets [Abstract] | ||
Equity investments, at fair value | 28,372 | |
Equity securities available-for-sale | 30,595 | |
Recurring [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | Common stocks Consumer staples [Member] | ||
Assets [Abstract] | ||
Equity investments, at fair value | 14,715 | |
Equity securities available-for-sale | 14,127 | |
Recurring [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | Common stocks Consumer discretionary [Member] | ||
Assets [Abstract] | ||
Equity investments, at fair value | 21,966 | |
Equity securities available-for-sale | 20,538 | |
Recurring [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | Common stocks Energy [Member] | ||
Assets [Abstract] | ||
Equity investments, at fair value | 15,620 | |
Equity securities available-for-sale | 16,905 | |
Recurring [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | Common stocks Industrials [Member] | ||
Assets [Abstract] | ||
Equity investments, at fair value | 25,235 | |
Equity securities available-for-sale | 28,489 | |
Recurring [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | Common stocks Other [Member] | ||
Assets [Abstract] | ||
Equity investments, at fair value | 15,762 | |
Equity securities available-for-sale | 16,421 | |
Recurring [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | Nonredeemable Preferred Stock [Member] | ||
Assets [Abstract] | ||
Equity investments, at fair value | 9,443 | |
Equity securities available-for-sale | 9,512 | |
Recurring [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | Investment funds [Member] | ||
Assets [Abstract] | ||
Equity investments, at fair value | 0 | |
Recurring [Member] | Significant other observable inputs (Level 2) [Member] | ||
Assets [Abstract] | ||
Short-term investments | 0 | 0 |
Recurring [Member] | Significant other observable inputs (Level 2) [Member] | Debt Securities [Member] | ||
Assets [Abstract] | ||
Fixed maturity securities available-for-sale | 1,255,911 | 1,274,396 |
Recurring [Member] | Significant other observable inputs (Level 2) [Member] | US Treasury Securities [Member] | ||
Assets [Abstract] | ||
Fixed maturity securities available-for-sale | 7,956 | 8,078 |
Recurring [Member] | Significant other observable inputs (Level 2) [Member] | US Government-sponsored Enterprises Debt Securities [Member] | ||
Assets [Abstract] | ||
Fixed maturity securities available-for-sale | 302,476 | 297,949 |
Recurring [Member] | Significant other observable inputs (Level 2) [Member] | US States and Political Subdivisions Debt Securities [Member] | ||
Assets [Abstract] | ||
Fixed maturity securities available-for-sale | 293,931 | 307,536 |
Recurring [Member] | Significant other observable inputs (Level 2) [Member] | Commercial Mortgage Backed Securities [Member] | ||
Assets [Abstract] | ||
Fixed maturity securities available-for-sale | 76,660 | 83,980 |
Recurring [Member] | Significant other observable inputs (Level 2) [Member] | Residential Mortgage Backed Securities [Member] | ||
Assets [Abstract] | ||
Fixed maturity securities available-for-sale | 132,350 | 119,799 |
Recurring [Member] | Significant other observable inputs (Level 2) [Member] | Collateralized Debt Obligations [Member] | ||
Assets [Abstract] | ||
Fixed maturity securities available-for-sale | 22,748 | 24,114 |
Recurring [Member] | Significant other observable inputs (Level 2) [Member] | Corporate Debt Securities [Member] | ||
Assets [Abstract] | ||
Fixed maturity securities available-for-sale | 419,790 | 432,940 |
Recurring [Member] | Significant other observable inputs (Level 2) [Member] | Equity Securities [Member] | ||
Assets [Abstract] | ||
Equity investments, at fair value | 9,781 | |
Equity securities available-for-sale | 10,196 | |
Recurring [Member] | Significant other observable inputs (Level 2) [Member] | Common stocks Financial services [Member] | ||
Assets [Abstract] | ||
Equity investments, at fair value | 0 | |
Equity securities available-for-sale | 0 | |
Recurring [Member] | Significant other observable inputs (Level 2) [Member] | Common stocks Information technology [Member] | ||
Assets [Abstract] | ||
Equity investments, at fair value | 0 | |
Equity securities available-for-sale | 0 | |
Recurring [Member] | Significant other observable inputs (Level 2) [Member] | Common stocks Healthcare [Member] | ||
Assets [Abstract] | ||
Equity investments, at fair value | 0 | |
Equity securities available-for-sale | 0 | |
Recurring [Member] | Significant other observable inputs (Level 2) [Member] | Common stocks Consumer staples [Member] | ||
Assets [Abstract] | ||
Equity investments, at fair value | 0 | |
Equity securities available-for-sale | 0 | |
Recurring [Member] | Significant other observable inputs (Level 2) [Member] | Common stocks Consumer discretionary [Member] | ||
Assets [Abstract] | ||
Equity investments, at fair value | 0 | |
Equity securities available-for-sale | 0 | |
Recurring [Member] | Significant other observable inputs (Level 2) [Member] | Common stocks Energy [Member] | ||
Assets [Abstract] | ||
Equity investments, at fair value | 0 | |
Equity securities available-for-sale | 0 | |
Recurring [Member] | Significant other observable inputs (Level 2) [Member] | Common stocks Industrials [Member] | ||
Assets [Abstract] | ||
Equity investments, at fair value | 0 | |
Equity securities available-for-sale | 0 | |
Recurring [Member] | Significant other observable inputs (Level 2) [Member] | Common stocks Other [Member] | ||
Assets [Abstract] | ||
Equity investments, at fair value | 0 | |
Equity securities available-for-sale | 0 | |
Recurring [Member] | Significant other observable inputs (Level 2) [Member] | Nonredeemable Preferred Stock [Member] | ||
Assets [Abstract] | ||
Equity investments, at fair value | 9,781 | |
Equity securities available-for-sale | 10,196 | |
Recurring [Member] | Significant other observable inputs (Level 2) [Member] | Investment funds [Member] | ||
Assets [Abstract] | ||
Equity investments, at fair value | 0 | |
Recurring [Member] | Significant unobservable inputs (Level 3) [Member] | ||
Assets [Abstract] | ||
Short-term investments | 0 | 0 |
Recurring [Member] | Significant unobservable inputs (Level 3) [Member] | Debt Securities [Member] | ||
Assets [Abstract] | ||
Fixed maturity securities available-for-sale | $ 562 | $ 620 |
Number of securities categorized as Level 3 fair value measurements | Security | 2 | 2 |
Recurring [Member] | Significant unobservable inputs (Level 3) [Member] | US Treasury Securities [Member] | ||
Assets [Abstract] | ||
Fixed maturity securities available-for-sale | $ 0 | $ 0 |
Recurring [Member] | Significant unobservable inputs (Level 3) [Member] | US Government-sponsored Enterprises Debt Securities [Member] | ||
Assets [Abstract] | ||
Fixed maturity securities available-for-sale | 0 | 0 |
Recurring [Member] | Significant unobservable inputs (Level 3) [Member] | US States and Political Subdivisions Debt Securities [Member] | ||
Assets [Abstract] | ||
Fixed maturity securities available-for-sale | 0 | 0 |
Recurring [Member] | Significant unobservable inputs (Level 3) [Member] | Commercial Mortgage Backed Securities [Member] | ||
Assets [Abstract] | ||
Fixed maturity securities available-for-sale | 0 | 0 |
Recurring [Member] | Significant unobservable inputs (Level 3) [Member] | Residential Mortgage Backed Securities [Member] | ||
Assets [Abstract] | ||
Fixed maturity securities available-for-sale | 0 | 0 |
Recurring [Member] | Significant unobservable inputs (Level 3) [Member] | Collateralized Debt Obligations [Member] | ||
Assets [Abstract] | ||
Fixed maturity securities available-for-sale | 0 | 0 |
Recurring [Member] | Significant unobservable inputs (Level 3) [Member] | Corporate Debt Securities [Member] | ||
Assets [Abstract] | ||
Fixed maturity securities available-for-sale | 562 | 620 |
Recurring [Member] | Significant unobservable inputs (Level 3) [Member] | Equity Securities [Member] | ||
Assets [Abstract] | ||
Equity investments, at fair value | $ 3 | |
Equity securities available-for-sale | $ 2,003 | |
Number of securities categorized as Level 3 fair value measurements | Security | 1 | 2 |
Recurring [Member] | Significant unobservable inputs (Level 3) [Member] | Common stocks Financial services [Member] | ||
Assets [Abstract] | ||
Equity investments, at fair value | $ 3 | |
Equity securities available-for-sale | $ 3 | |
Recurring [Member] | Significant unobservable inputs (Level 3) [Member] | Common stocks Information technology [Member] | ||
Assets [Abstract] | ||
Equity investments, at fair value | 0 | |
Equity securities available-for-sale | 0 | |
Recurring [Member] | Significant unobservable inputs (Level 3) [Member] | Common stocks Healthcare [Member] | ||
Assets [Abstract] | ||
Equity investments, at fair value | 0 | |
Equity securities available-for-sale | 0 | |
Recurring [Member] | Significant unobservable inputs (Level 3) [Member] | Common stocks Consumer staples [Member] | ||
Assets [Abstract] | ||
Equity investments, at fair value | 0 | |
Equity securities available-for-sale | 0 | |
Recurring [Member] | Significant unobservable inputs (Level 3) [Member] | Common stocks Consumer discretionary [Member] | ||
Assets [Abstract] | ||
Equity investments, at fair value | 0 | |
Equity securities available-for-sale | 0 | |
Recurring [Member] | Significant unobservable inputs (Level 3) [Member] | Common stocks Energy [Member] | ||
Assets [Abstract] | ||
Equity investments, at fair value | 0 | |
Equity securities available-for-sale | 0 | |
Recurring [Member] | Significant unobservable inputs (Level 3) [Member] | Common stocks Industrials [Member] | ||
Assets [Abstract] | ||
Equity investments, at fair value | 0 | |
Equity securities available-for-sale | 0 | |
Recurring [Member] | Significant unobservable inputs (Level 3) [Member] | Common stocks Other [Member] | ||
Assets [Abstract] | ||
Equity investments, at fair value | 0 | |
Equity securities available-for-sale | 0 | |
Recurring [Member] | Significant unobservable inputs (Level 3) [Member] | Nonredeemable Preferred Stock [Member] | ||
Assets [Abstract] | ||
Equity investments, at fair value | 0 | |
Equity securities available-for-sale | 2,000 | |
Recurring [Member] | Significant unobservable inputs (Level 3) [Member] | Investment funds [Member] | ||
Assets [Abstract] | ||
Equity investments, at fair value | 0 | |
Not Reported At Fair Value [Member] | ||
Liabilities [Abstract] | ||
Surplus notes | 15,731 | 16,689 |
Not Reported At Fair Value [Member] | Investments measured at net asset value (NAV) | ||
Liabilities [Abstract] | ||
Surplus notes | 0 | 0 |
Not Reported At Fair Value [Member] | Quoted prices in active markets for identical assets (Level 1) [Member] | ||
Liabilities [Abstract] | ||
Surplus notes | 0 | 0 |
Not Reported At Fair Value [Member] | Significant other observable inputs (Level 2) [Member] | ||
Liabilities [Abstract] | ||
Surplus notes | 0 | 0 |
Not Reported At Fair Value [Member] | Significant unobservable inputs (Level 3) [Member] | ||
Liabilities [Abstract] | ||
Surplus notes | $ 15,731 | $ 16,689 |
DISCLOSURES ABOUT THE FAIR VA45
DISCLOSURES ABOUT THE FAIR VALUE OF FINANCIAL INSTRUMENTS, Unobservable Input Reconciliation (Details) - Recurring [Member] - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Reconciliation of assets measured at fair value on recurring basis using significant unobservable inputs [Roll Forward] | ||
Beginning balance | $ 623 | $ 2,985 |
Settlements | (56) | (50) |
Unrealized losses included in other comprehensive income (loss) | (2) | (3) |
Balance at end of period | 565 | 2,932 |
Corporate Debt Securities [Member] | ||
Reconciliation of assets measured at fair value on recurring basis using significant unobservable inputs [Roll Forward] | ||
Beginning balance | 620 | 982 |
Settlements | (56) | (50) |
Unrealized losses included in other comprehensive income (loss) | (2) | (3) |
Balance at end of period | 562 | 929 |
Common stocks Financial services [Member] | ||
Reconciliation of assets measured at fair value on recurring basis using significant unobservable inputs [Roll Forward] | ||
Beginning balance | 3 | 3 |
Settlements | 0 | 0 |
Unrealized losses included in other comprehensive income (loss) | 0 | 0 |
Balance at end of period | $ 3 | 3 |
Nonredeemable Preferred Stock [Member] | ||
Reconciliation of assets measured at fair value on recurring basis using significant unobservable inputs [Roll Forward] | ||
Beginning balance | 2,000 | |
Settlements | 0 | |
Unrealized losses included in other comprehensive income (loss) | 0 | |
Balance at end of period | $ 2,000 |
INVESTMENTS (Details)
INVESTMENTS (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Amortized cost and estimated fair value of available-for-sale securities [Abstract] | |||
Fixed maturity securities available-for-sale, Amortized cost | $ 1,258,390 | $ 1,253,166 | |
Fixed maturity securities available-for-sale | 1,256,473 | 1,275,016 | |
Equity securities available-for-sale, Amortized cost | 144,274 | ||
Equity securities available-for-sale | 228,115 | ||
Available-for-sale securities, Amortized cost | 1,397,440 | ||
Available-for-sale securities, Gross unrealized gains | 118,284 | ||
Available-for-sale securities, Gross unrealized losses | 12,593 | ||
Available-for-sale securities | 1,503,131 | ||
Available for sale securities continuous unrealized loss position [Abstract] | |||
Less than twelve months, Fair value | 247,865 | ||
Less than twelve months, Unrealized losses | 3,840 | ||
Twelve months or longer, Fair value | 192,946 | ||
Twelve months or longer, Unrealized losses | 8,753 | ||
Total, Fair value | 440,811 | ||
Total, Unrealized losses | 12,593 | ||
Amortized cost | |||
Due in one year or less | 35,995 | ||
Due after one year through five years | 189,333 | ||
Due after five years through ten years | 348,705 | ||
Due after ten years | 468,751 | ||
Securities not due at a single maturity date | 215,606 | ||
Fixed maturity securities available-for-sale, Amortized cost | 1,258,390 | 1,253,166 | |
Estimated fair value | |||
Due in one year or less | 36,421 | ||
Due after one year through five years | 191,111 | ||
Due after five years through ten years | 347,330 | ||
Due after ten years | 470,731 | ||
Securities not due at a single maturity date | 210,880 | ||
Totals | 1,256,473 | 1,275,016 | |
Realized Investment Gains (Losses) [Abstract] | |||
Fixed maturity securities available-for-sale gross realized gains | 234 | ||
Fixed maturity securities available-for-sale gross realized losses | (478) | ||
Equity securities net realized investment gains (losses) | 2,716 | ||
Equity securities net unrealized investment gains (losses) on securities still held | (9,854) | ||
Net realized investment gains (losses) and, beginning in 2018, change in unrealized investment gains on equity investments | (5,393) | $ (627) | |
Debt Securities [Member] | |||
Amortized cost and estimated fair value of available-for-sale securities [Abstract] | |||
Fixed maturity securities available-for-sale, Amortized cost | 1,258,390 | 1,253,166 | |
Fixed maturity securities available-for-sale, Gross unrealized gains | 19,796 | 33,036 | |
Fixed maturity securities available-for-sale, Gross unrealized losses | 21,713 | 11,186 | |
Fixed maturity securities available-for-sale | 1,256,473 | 1,275,016 | |
Available for sale securities continuous unrealized loss position [Abstract] | |||
Less than twelve months, Fair value | 479,834 | 232,834 | |
Less than twelve months, Unrealized losses | 9,955 | 2,472 | |
Twelve months or longer, Fair value | 186,441 | 190,985 | |
Twelve months or longer, Unrealized losses | 11,758 | 8,714 | |
Total, Fair value | 666,275 | 423,819 | |
Total, Unrealized losses | 21,713 | 11,186 | |
Amortized cost | |||
Fixed maturity securities available-for-sale, Amortized cost | 1,258,390 | 1,253,166 | |
Estimated fair value | |||
Totals | 1,256,473 | 1,275,016 | |
Realized Investment Gains (Losses) [Abstract] | |||
Available-for-sale, Gross realized investment gains | 90 | ||
Available-for-sale, Gross realized investment losses | (1,206) | ||
US Treasury Securities [Member] | |||
Amortized cost and estimated fair value of available-for-sale securities [Abstract] | |||
Fixed maturity securities available-for-sale, Amortized cost | 8,121 | 8,115 | |
Fixed maturity securities available-for-sale, Gross unrealized gains | 0 | 0 | |
Fixed maturity securities available-for-sale, Gross unrealized losses | 165 | 37 | |
Fixed maturity securities available-for-sale | 7,956 | 8,078 | |
Available for sale securities continuous unrealized loss position [Abstract] | |||
Less than twelve months, Fair value | 7,956 | 8,078 | |
Less than twelve months, Unrealized losses | 165 | 37 | |
Twelve months or longer, Fair value | 0 | 0 | |
Twelve months or longer, Unrealized losses | 0 | 0 | |
Total, Fair value | 7,956 | 8,078 | |
Total, Unrealized losses | 165 | 37 | |
Amortized cost | |||
Fixed maturity securities available-for-sale, Amortized cost | 8,121 | 8,115 | |
Estimated fair value | |||
Totals | 7,956 | 8,078 | |
US Government-sponsored Enterprises Debt Securities [Member] | |||
Amortized cost and estimated fair value of available-for-sale securities [Abstract] | |||
Fixed maturity securities available-for-sale, Amortized cost | 313,212 | 303,932 | |
Fixed maturity securities available-for-sale, Gross unrealized gains | 36 | 122 | |
Fixed maturity securities available-for-sale, Gross unrealized losses | 10,772 | 6,105 | |
Fixed maturity securities available-for-sale | 302,476 | 297,949 | |
Available for sale securities continuous unrealized loss position [Abstract] | |||
Less than twelve months, Fair value | 159,653 | 134,284 | |
Less than twelve months, Unrealized losses | 3,831 | 1,491 | |
Twelve months or longer, Fair value | 125,284 | 127,604 | |
Twelve months or longer, Unrealized losses | 6,941 | 4,614 | |
Total, Fair value | 284,937 | 261,888 | |
Total, Unrealized losses | 10,772 | 6,105 | |
Amortized cost | |||
Fixed maturity securities available-for-sale, Amortized cost | 313,212 | 303,932 | |
Estimated fair value | |||
Totals | 302,476 | 297,949 | |
US States and Political Subdivisions Debt Securities [Member] | |||
Amortized cost and estimated fair value of available-for-sale securities [Abstract] | |||
Fixed maturity securities available-for-sale, Amortized cost | 282,149 | 290,038 | |
Fixed maturity securities available-for-sale, Gross unrealized gains | 12,391 | 17,729 | |
Fixed maturity securities available-for-sale, Gross unrealized losses | 609 | 231 | |
Fixed maturity securities available-for-sale | 293,931 | 307,536 | |
Available for sale securities continuous unrealized loss position [Abstract] | |||
Less than twelve months, Fair value | 11,287 | 0 | |
Less than twelve months, Unrealized losses | 78 | 0 | |
Twelve months or longer, Fair value | 14,057 | 14,416 | |
Twelve months or longer, Unrealized losses | 531 | 231 | |
Total, Fair value | 25,344 | 14,416 | |
Total, Unrealized losses | 609 | 231 | |
Amortized cost | |||
Fixed maturity securities available-for-sale, Amortized cost | 282,149 | 290,038 | |
Estimated fair value | |||
Totals | 293,931 | 307,536 | |
Commercial Mortgage Backed Securities [Member] | |||
Amortized cost and estimated fair value of available-for-sale securities [Abstract] | |||
Fixed maturity securities available-for-sale, Amortized cost | 79,011 | 84,058 | |
Fixed maturity securities available-for-sale, Gross unrealized gains | 311 | 591 | |
Fixed maturity securities available-for-sale, Gross unrealized losses | 2,662 | 669 | |
Fixed maturity securities available-for-sale | 76,660 | 83,980 | |
Available for sale securities continuous unrealized loss position [Abstract] | |||
Less than twelve months, Fair value | 61,143 | 32,155 | |
Less than twelve months, Unrealized losses | 1,971 | 221 | |
Twelve months or longer, Fair value | 8,280 | 8,530 | |
Twelve months or longer, Unrealized losses | 691 | 448 | |
Total, Fair value | 69,423 | 40,685 | |
Total, Unrealized losses | 2,662 | 669 | |
Amortized cost | |||
Fixed maturity securities available-for-sale, Amortized cost | 79,011 | 84,058 | |
Estimated fair value | |||
Totals | 76,660 | 83,980 | |
Residential Mortgage Backed Securities [Member] | |||
Amortized cost and estimated fair value of available-for-sale securities [Abstract] | |||
Fixed maturity securities available-for-sale, Amortized cost | 134,691 | 120,554 | |
Fixed maturity securities available-for-sale, Gross unrealized gains | 1,898 | 2,479 | |
Fixed maturity securities available-for-sale, Gross unrealized losses | 4,239 | 3,234 | |
Fixed maturity securities available-for-sale | 132,350 | 119,799 | |
Available for sale securities continuous unrealized loss position [Abstract] | |||
Less than twelve months, Fair value | 67,489 | 30,003 | |
Less than twelve months, Unrealized losses | 1,568 | 394 | |
Twelve months or longer, Fair value | 21,858 | 22,948 | |
Twelve months or longer, Unrealized losses | 2,671 | 2,840 | |
Total, Fair value | 89,347 | 52,951 | |
Total, Unrealized losses | 4,239 | 3,234 | |
Amortized cost | |||
Fixed maturity securities available-for-sale, Amortized cost | 134,691 | 120,554 | |
Estimated fair value | |||
Totals | 132,350 | 119,799 | |
Collateralized Debt Obligations [Member] | |||
Amortized cost and estimated fair value of available-for-sale securities [Abstract] | |||
Fixed maturity securities available-for-sale, Amortized cost | 23,148 | 23,934 | |
Fixed maturity securities available-for-sale, Gross unrealized gains | 418 | 625 | |
Fixed maturity securities available-for-sale, Gross unrealized losses | 818 | 445 | |
Fixed maturity securities available-for-sale | 22,748 | 24,114 | |
Available for sale securities continuous unrealized loss position [Abstract] | |||
Less than twelve months, Fair value | 5,158 | 0 | |
Less than twelve months, Unrealized losses | 79 | 0 | |
Twelve months or longer, Fair value | 12,963 | 13,440 | |
Twelve months or longer, Unrealized losses | 739 | 445 | |
Total, Fair value | 18,121 | 13,440 | |
Total, Unrealized losses | 818 | 445 | |
Amortized cost | |||
Fixed maturity securities available-for-sale, Amortized cost | 23,148 | 23,934 | |
Estimated fair value | |||
Totals | 22,748 | 24,114 | |
Corporate Debt Securities [Member] | |||
Amortized cost and estimated fair value of available-for-sale securities [Abstract] | |||
Fixed maturity securities available-for-sale, Amortized cost | 418,058 | 422,535 | |
Fixed maturity securities available-for-sale, Gross unrealized gains | 4,742 | 11,490 | |
Fixed maturity securities available-for-sale, Gross unrealized losses | 2,448 | 465 | |
Fixed maturity securities available-for-sale | 420,352 | 433,560 | |
Available for sale securities continuous unrealized loss position [Abstract] | |||
Less than twelve months, Fair value | 167,148 | 28,314 | |
Less than twelve months, Unrealized losses | 2,263 | 329 | |
Twelve months or longer, Fair value | 3,999 | 4,047 | |
Twelve months or longer, Unrealized losses | 185 | 136 | |
Total, Fair value | 171,147 | 32,361 | |
Total, Unrealized losses | 2,448 | 465 | |
Amortized cost | |||
Fixed maturity securities available-for-sale, Amortized cost | 418,058 | 422,535 | |
Estimated fair value | |||
Totals | 420,352 | 433,560 | |
Equity Securities [Member] | |||
Amortized cost and estimated fair value of available-for-sale securities [Abstract] | |||
Equity securities available-for-sale, Amortized cost | 144,274 | ||
Equity securities available-for-sale, Gross unrealized gains | 85,248 | ||
Equity securities available-for-sale, Gross unrealized loss | 1,407 | ||
Equity securities available-for-sale | 228,115 | ||
Available for sale securities continuous unrealized loss position [Abstract] | |||
Less than twelve months, Fair value | 15,031 | ||
Less than twelve months, Unrealized losses | 1,368 | ||
Twelve months or longer, Fair value | 1,961 | ||
Twelve months or longer, Unrealized losses | 39 | ||
Total, Fair value | 16,992 | ||
Total, Unrealized losses | 1,407 | ||
Realized Investment Gains (Losses) [Abstract] | |||
Equity securities available-for-sale net realized investment gains (losses) excluding other than temporary impairments | 2,776 | ||
Common stocks Financial services [Member] | |||
Amortized cost and estimated fair value of available-for-sale securities [Abstract] | |||
Equity securities available-for-sale, Amortized cost | 30,103 | ||
Equity securities available-for-sale, Gross unrealized gains | 13,594 | ||
Equity securities available-for-sale, Gross unrealized loss | 175 | ||
Equity securities available-for-sale | 43,522 | ||
Available for sale securities continuous unrealized loss position [Abstract] | |||
Less than twelve months, Fair value | 4,391 | ||
Less than twelve months, Unrealized losses | 175 | ||
Twelve months or longer, Fair value | 0 | ||
Twelve months or longer, Unrealized losses | 0 | ||
Total, Fair value | 4,391 | ||
Total, Unrealized losses | 175 | ||
Common stocks Information technology [Member] | |||
Amortized cost and estimated fair value of available-for-sale securities [Abstract] | |||
Equity securities available-for-sale, Amortized cost | 18,308 | ||
Equity securities available-for-sale, Gross unrealized gains | 17,504 | ||
Equity securities available-for-sale, Gross unrealized loss | 2 | ||
Equity securities available-for-sale | 35,810 | ||
Available for sale securities continuous unrealized loss position [Abstract] | |||
Less than twelve months, Fair value | 344 | ||
Less than twelve months, Unrealized losses | 2 | ||
Twelve months or longer, Fair value | 0 | ||
Twelve months or longer, Unrealized losses | 0 | ||
Total, Fair value | 344 | ||
Total, Unrealized losses | 2 | ||
Common stocks Healthcare [Member] | |||
Amortized cost and estimated fair value of available-for-sale securities [Abstract] | |||
Equity securities available-for-sale, Amortized cost | 18,877 | ||
Equity securities available-for-sale, Gross unrealized gains | 11,876 | ||
Equity securities available-for-sale, Gross unrealized loss | 158 | ||
Equity securities available-for-sale | 30,595 | ||
Available for sale securities continuous unrealized loss position [Abstract] | |||
Less than twelve months, Fair value | 2,532 | ||
Less than twelve months, Unrealized losses | 158 | ||
Twelve months or longer, Fair value | 0 | ||
Twelve months or longer, Unrealized losses | 0 | ||
Total, Fair value | 2,532 | ||
Total, Unrealized losses | 158 | ||
Common stocks Consumer staples [Member] | |||
Amortized cost and estimated fair value of available-for-sale securities [Abstract] | |||
Equity securities available-for-sale, Amortized cost | 9,275 | ||
Equity securities available-for-sale, Gross unrealized gains | 4,917 | ||
Equity securities available-for-sale, Gross unrealized loss | 65 | ||
Equity securities available-for-sale | 14,127 | ||
Available for sale securities continuous unrealized loss position [Abstract] | |||
Less than twelve months, Fair value | 575 | ||
Less than twelve months, Unrealized losses | 65 | ||
Twelve months or longer, Fair value | 0 | ||
Twelve months or longer, Unrealized losses | 0 | ||
Total, Fair value | 575 | ||
Total, Unrealized losses | 65 | ||
Common stocks Consumer discretionary [Member] | |||
Amortized cost and estimated fair value of available-for-sale securities [Abstract] | |||
Equity securities available-for-sale, Amortized cost | 10,935 | ||
Equity securities available-for-sale, Gross unrealized gains | 9,640 | ||
Equity securities available-for-sale, Gross unrealized loss | 37 | ||
Equity securities available-for-sale | 20,538 | ||
Available for sale securities continuous unrealized loss position [Abstract] | |||
Less than twelve months, Fair value | 992 | ||
Less than twelve months, Unrealized losses | 37 | ||
Twelve months or longer, Fair value | 0 | ||
Twelve months or longer, Unrealized losses | 0 | ||
Total, Fair value | 992 | ||
Total, Unrealized losses | 37 | ||
Common stocks Energy [Member] | |||
Amortized cost and estimated fair value of available-for-sale securities [Abstract] | |||
Equity securities available-for-sale, Amortized cost | 12,441 | ||
Equity securities available-for-sale, Gross unrealized gains | 5,381 | ||
Equity securities available-for-sale, Gross unrealized loss | 917 | ||
Equity securities available-for-sale | 16,905 | ||
Available for sale securities continuous unrealized loss position [Abstract] | |||
Less than twelve months, Fair value | 3,181 | ||
Less than twelve months, Unrealized losses | 917 | ||
Twelve months or longer, Fair value | 0 | ||
Twelve months or longer, Unrealized losses | 0 | ||
Total, Fair value | 3,181 | ||
Total, Unrealized losses | 917 | ||
Common stocks Industrials [Member] | |||
Amortized cost and estimated fair value of available-for-sale securities [Abstract] | |||
Equity securities available-for-sale, Amortized cost | 12,746 | ||
Equity securities available-for-sale, Gross unrealized gains | 15,757 | ||
Equity securities available-for-sale, Gross unrealized loss | 14 | ||
Equity securities available-for-sale | 28,489 | ||
Available for sale securities continuous unrealized loss position [Abstract] | |||
Less than twelve months, Fair value | 3,016 | ||
Less than twelve months, Unrealized losses | 14 | ||
Twelve months or longer, Fair value | 0 | ||
Twelve months or longer, Unrealized losses | 0 | ||
Total, Fair value | 3,016 | ||
Total, Unrealized losses | 14 | ||
Common stocks Other [Member] | |||
Amortized cost and estimated fair value of available-for-sale securities [Abstract] | |||
Equity securities available-for-sale, Amortized cost | 11,058 | ||
Equity securities available-for-sale, Gross unrealized gains | 5,363 | ||
Equity securities available-for-sale, Gross unrealized loss | 0 | ||
Equity securities available-for-sale | 16,421 | ||
Nonredeemable Preferred Stock [Member] | |||
Amortized cost and estimated fair value of available-for-sale securities [Abstract] | |||
Equity securities available-for-sale, Amortized cost | 20,531 | ||
Equity securities available-for-sale, Gross unrealized gains | 1,216 | ||
Equity securities available-for-sale, Gross unrealized loss | 39 | ||
Equity securities available-for-sale | 21,708 | ||
Available for sale securities continuous unrealized loss position [Abstract] | |||
Less than twelve months, Fair value | 0 | ||
Less than twelve months, Unrealized losses | 0 | ||
Twelve months or longer, Fair value | 1,961 | ||
Twelve months or longer, Unrealized losses | 39 | ||
Total, Fair value | 1,961 | ||
Total, Unrealized losses | $ 39 | ||
Other Long-term Investments [Member] | |||
Realized Investment Gains (Losses) [Abstract] | |||
Net realized investment gains (losses) and, beginning in 2018, change in unrealized investment gains on equity investments | $ 1,989 | $ (2,287) |
CONTINGENT LIABILITIES (Details
CONTINGENT LIABILITIES (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Entity's share of case loss reserves, eliminated by the purchase of annuities | $ 110 |
Contingent liability for aggregate guaranteed amount of annuities | $ 183 |
STOCK REPURCHASE PROGRAM (Detai
STOCK REPURCHASE PROGRAM (Details) $ in Thousands | Nov. 03, 2011USD ($) |
Equity [Abstract] | |
Authorized amount of stock repurchase program | $ 15,000 |
ACCUMULATED OTHER COMPREHENSI49
ACCUMULATED OTHER COMPREHENSIVE INCOME - Components of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Cumulative adjustment for adoption of financial instruments recognition and measurement changes | $ 0 | |
Other comprehensive income (loss) before reclassifications | (18,969) | $ 9,705 |
Amounts reclassified from accumulated other comprehensive income (loss) | (348) | (1,351) |
Other comprehensive income (loss) | (19,317) | 8,354 |
Accumulated Other Comprehensive Income (Loss) [Member] | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Cumulative adjustment for adoption of financial instruments recognition and measurement changes | (66,234) | |
Other comprehensive income (loss) | (19,317) | 8,354 |
Unrealized gains (losses) on available-for- sale securities | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance | 83,497 | 49,748 |
Cumulative adjustment for adoption of financial instruments recognition and measurement changes | (66,234) | |
Other comprehensive income (loss) before reclassifications | (18,969) | 9,705 |
Amounts reclassified from accumulated other comprehensive income (loss) | 193 | (1,079) |
Other comprehensive income (loss) | (18,776) | 8,626 |
Balance | (1,513) | 58,374 |
Unrecognized pension and postretirement benefit obligations, net actuarial loss | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance | (13,074) | (16,299) |
Cumulative adjustment for adoption of financial instruments recognition and measurement changes | 0 | |
Other comprehensive income (loss) before reclassifications | 0 | 0 |
Amounts reclassified from accumulated other comprehensive income (loss) | 81 | 239 |
Other comprehensive income (loss) | 81 | 239 |
Balance | (12,993) | (16,060) |
Unrecognized pension and postretirement benefit obligations, prior service credit | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance | 12,961 | 12,632 |
Cumulative adjustment for adoption of financial instruments recognition and measurement changes | 0 | |
Other comprehensive income (loss) before reclassifications | 0 | 0 |
Amounts reclassified from accumulated other comprehensive income (loss) | (622) | (511) |
Other comprehensive income (loss) | (622) | (511) |
Balance | 12,339 | 12,121 |
Total | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance | (113) | (3,667) |
Cumulative adjustment for adoption of financial instruments recognition and measurement changes | 0 | |
Other comprehensive income (loss) before reclassifications | 0 | 0 |
Amounts reclassified from accumulated other comprehensive income (loss) | (541) | (272) |
Other comprehensive income (loss) | (541) | (272) |
Balance | (654) | (3,939) |
Total | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance | 83,384 | 46,081 |
Cumulative adjustment for adoption of financial instruments recognition and measurement changes | (66,234) | |
Balance | $ (2,167) | $ 54,435 |
ACCUMULATED OTHER COMPREHENSI50
ACCUMULATED OTHER COMPREHENSIVE INCOME - Reclassifications out of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Net realized investment gains (losses) and, beginning in 2018, change in unrealized investment gains on equity investments | $ (5,393) | $ (627) | |
Total income tax expense (benefit) | 452 | (1,636) | |
Net income (loss) | (76) | 6,804 | |
Net reclassification adjustment | 348 | 1,351 | |
Unrealized gains (losses) on investments: | Reclassification Out Of Accumulated Other Comprehensive Income [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Net realized investment gains (losses) and, beginning in 2018, change in unrealized investment gains on equity investments | (244) | 1,660 | |
Total income tax expense (benefit) | 51 | (581) | |
Net income (loss) | (193) | 1,079 | |
Unrecognized pension and postretirement benefit obligations, net actuarial loss | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Reclassification adjustment for amounts amortized into net periodic pension and postretirement benefit income: | [1] | (103) | (368) |
Net reclassification adjustment | (81) | (239) | |
Unrecognized pension and postretirement benefit obligations, prior service credit | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Reclassification adjustment for amounts amortized into net periodic pension and postretirement benefit income: | [1] | 788 | 787 |
Net reclassification adjustment | 622 | 511 | |
Total | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Reclassification adjustment for amounts amortized into net periodic pension and postretirement benefit income: | 685 | 419 | |
Deferred income tax (expense) benefit | (144) | (147) | |
Net reclassification adjustment | $ 541 | $ 272 | |
[1] | These reclassified components of accumulated other comprehensive income are included in the computation of net periodic pension and postretirement benefit income (see note 7, Employee Retirement Plans, for additional details). |