Document_And_Entity_Informatio
Document And Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Feb. 02, 2015 | Jun. 30, 2014 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | MERCURY GENERAL CORP | ||
Entity Central Index Key | 64996 | ||
Current Fiscal Year End Date | -19 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 55,126,462 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $1,265,038,394 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
ASSETS | ||
Fixed maturity securities (amortized cost $2,503,494; $2,523,042) | $2,618,400 | $2,560,653 |
Equity securities (cost $387,851; $223,933) | 412,880 | 281,883 |
Short-term investments (cost $373,180; $315,886) | 372,542 | 315,776 |
Total investments | 3,403,822 | 3,158,312 |
Cash | 289,907 | 266,508 |
Receivables: | ||
Premiums | 390,009 | 366,075 |
Accrued investment income | 38,737 | 36,120 |
Other | 21,202 | 23,029 |
Total receivables | 449,948 | 425,224 |
Deferred policy acquisition costs | 197,202 | 194,466 |
Fixed assets, net | 158,976 | 156,716 |
Current income taxes | 503 | 0 |
Deferred income taxes | 0 | 15,220 |
Goodwill | 42,796 | 42,796 |
Other intangible assets, net | 35,623 | 41,603 |
Other assets | 21,512 | 14,336 |
Total assets | 4,600,289 | 4,315,181 |
Liabilities: | ||
Losses and loss adjustment expenses | 1,091,797 | 1,038,984 |
Unearned premiums | 999,798 | 953,527 |
Notes payable | 290,000 | 190,000 |
Accounts payable and accrued expenses | 130,887 | 127,663 |
Current income taxes | 0 | 11,856 |
Deferred income taxes | 5,333 | 0 |
Other liabilities | 207,028 | 170,665 |
Total liabilities | 2,724,843 | 2,492,695 |
Commitments and contingencies | ||
Shareholders’ equity: | ||
Common stock without par value or stated value: Authorized 70,000 shares; issued and outstanding 55,121; 54,975 | 88,705 | 81,591 |
Additional paid-in capital | 3,804 | 411 |
Retained earnings | 1,782,937 | 1,740,484 |
Total shareholders’ equity | 1,875,446 | 1,822,486 |
Total liabilities and shareholders’ equity | $4,600,289 | $4,315,181 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ||
Amortized cost on fixed maturities trading investments | $2,523,042 | $2,270,903 |
Cost - equity security trading investments | 223,933 | 475,959 |
Cost - short-term investments | $315,886 | $294,607 |
Common Stock | ||
Common stock, no par value (in dollars per share) | $0 | $0 |
Common stock, shares authorized (in shares) | 70,000,000 | 70,000,000 |
Common stock, shares issued (in shares) | 55,121,000 | 54,975,000 |
Common stock, shares outstanding (in shares) | 55,121,000 | 54,975,000 |
Consolidated_Statements_Of_Ope
Consolidated Statements Of Operations (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenues: | |||
Net premiums earned | $2,796,195 | $2,698,187 | $2,574,920 |
Net investment income | 125,723 | 124,538 | 131,896 |
Net realized investment gains (losses) | 81,184 | -11,422 | 66,380 |
Other | 8,671 | 9,738 | 10,174 |
Total revenues | 3,011,773 | 2,821,041 | 2,783,370 |
Expenses: | |||
Losses and loss adjustment expenses | 1,986,122 | 1,962,690 | 1,961,448 |
Policy acquisition costs | 526,208 | 505,517 | 477,788 |
Other operating expenses | 249,381 | 219,478 | 207,281 |
Other operating expenses | 2,637 | 1,260 | 1,543 |
Total expenses | 2,764,348 | 2,688,945 | 2,648,060 |
Income before income taxes | 247,425 | 132,096 | 135,310 |
Income tax expense | 69,476 | 19,953 | 18,399 |
Net income | $177,949 | $112,143 | $116,911 |
Net income per share: | |||
Basic (in dollars per share) | $3.23 | $2.04 | $2.13 |
Diluted (in dollars per share) | $3.23 | $2.04 | $2.13 |
Consolidated_Statements_Of_Com
Consolidated Statements Of Comprehensive Income (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Statement of Comprehensive Income [Abstract] | |||||||||||
Net income | ($20,956) | $31,296 | $94,960 | $72,649 | $15,376 | $39,570 | ($9,264) | $66,461 | $177,949 | $112,143 | $116,911 |
Other comprehensive income, before tax: | |||||||||||
Gains on hedging instrument | 0 | 0 | 0 | ||||||||
Other comprehensive income, before tax | 0 | 0 | 0 | ||||||||
Income tax expense related to gains on hedging instrument | 0 | 0 | 0 | ||||||||
Other comprehensive income, net of tax: | 0 | 0 | 0 | ||||||||
Comprehensive income | $177,949 | $112,143 | $116,911 |
Consolidated_Statements_Of_Sha
Consolidated Statements Of Shareholders' Equity (USD $) | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Retained Earnings [Member] |
In Thousands, unless otherwise specified | |||||
Beginning of year at Dec. 31, 2011 | $76,634 | $538 | $0 | $1,780,311 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Exercise of stock options | -2,492 | 0 | |||
Share-based compensation expense | -370 | -168 | -538 | ||
Tax benefit on sales of incentive stock options | 86 | 86 | |||
Other comprehensive income, net of tax | 0 | ||||
Net income | 116,911 | 116,911 | |||
Dividends paid to shareholders | -134,105 | ||||
End of year at Dec. 31, 2012 | 1,842,497 | 79,380 | 0 | 0 | 1,763,117 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Exercise of stock options | -1,884 | -438 | |||
Share-based compensation expense | -974 | -125 | -849 | ||
Tax benefit on sales of incentive stock options | 202 | 202 | |||
Other comprehensive income, net of tax | 0 | ||||
Net income | 112,143 | 112,143 | |||
Dividends paid to shareholders | -134,776 | ||||
End of year at Dec. 31, 2013 | 1,822,486 | 81,591 | 411 | 0 | 1,740,484 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Exercise of stock options | -6,824 | -577 | |||
Share-based compensation expense | -4,112 | -142 | -3,970 | ||
Tax benefit on sales of incentive stock options | 148 | 148 | |||
Other comprehensive income, net of tax | 0 | ||||
Net income | 177,949 | 177,949 | |||
Dividends paid to shareholders | -135,496 | ||||
End of year at Dec. 31, 2014 | $1,875,446 | $88,705 | $3,804 | $0 | $1,782,937 |
Consolidated_Statements_Of_Cas
Consolidated Statements Of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net income | $177,949 | $112,143 | $116,911 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 28,054 | 30,587 | 36,974 |
Net realized investment (gains) losses | -81,184 | 11,422 | -66,380 |
Bond amortization, net | 18,918 | 12,529 | 6,757 |
Excess tax benefit from exercise of stock options | -148 | -202 | -86 |
Increase in premiums receivable | -23,934 | -20,688 | -56,588 |
Changes in current and deferred income taxes | 8,343 | 3,451 | -83 |
Increase in deferred policy acquisition costs | -2,736 | -8,556 | -14,480 |
Increase in unpaid losses and loss adjustment expenses | 52,813 | 2,861 | 50,844 |
Increase in unearned premiums | 46,271 | 33,098 | 77,002 |
Increase in accounts payable and accrued expenses | 31,019 | 30,367 | 1,197 |
Share-based compensation | -4,112 | -974 | -370 |
(Decrease) increase in other payables | -10,988 | 12,135 | 2,545 |
Other, net | -1,954 | -10,317 | -6,181 |
Net cash provided by operating activities | 246,535 | 209,804 | 148,062 |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Fixed maturity securities available-for-sale in nature: Purchases | -542,494 | -831,796 | -590,562 |
Fixed maturity securities available-for-sale in nature: Sales | 209,680 | 228,116 | 139,860 |
Fixed maturity securities available-for-sale in nature: Calls or maturities | 330,637 | 343,628 | 528,886 |
Equity securities available for sale in nature: | |||
Purchases | -868,383 | -596,883 | -358,216 |
Sales | 745,058 | 872,997 | 277,272 |
Calls | 1,044 | 0 | 923 |
Changes in securities payable and receivable | 9,294 | 1,702 | 1,919 |
Net increase in short-term investments | -56,530 | -20,005 | -58,949 |
Purchase of fixed assets | -26,037 | -18,671 | -15,177 |
Sale of fixed assets | 224 | 820 | 2,044 |
Other, net | 3,472 | 1,741 | 2,255 |
Net cash used in investing activities | -194,035 | -18,351 | -69,745 |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Dividends paid to shareholders | -135,496 | -134,776 | -134,105 |
Excess tax benefit from exercise of stock options | 148 | 202 | 86 |
Proceeds from stock options exercised | 6,247 | 1,446 | 2,492 |
Proceeds from bank loan | 100,000 | 50,000 | 0 |
Net cash used in financing activities | -29,101 | -83,128 | -131,527 |
Net increase (decrease) in cash | 23,399 | 108,325 | -53,210 |
Cash: | |||
Beginning of year | 266,508 | 158,183 | 211,393 |
End of year | 289,907 | 266,508 | 158,183 |
SUPPLEMENTAL CASH FLOW DISCLOSURE | |||
Interest paid | 2,543 | 998 | 1,690 |
Income taxes paid | $61,139 | $16,503 | $18,481 |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Accounting Policies [Abstract] | ||||||||||||
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies | |||||||||||
General | ||||||||||||
Mercury General Corporation (“Mercury General”) and its subsidiaries (referred to herein collectively as the “Company”) are primarily engaged in writing personal automobile insurance through 13 Insurance Companies in 13 states, principally California. The Company also writes homeowners, commercial automobile, commercial property, mechanical breakdown, fire, and umbrella insurance. The private passenger automobile lines of insurance were more than 77% of the Company’s direct premiums written in 2014, 2013, and 2012, of which approximately 83%, 81%, and 78% of the private passenger automobile premiums were written in California during 2014, 2013, and 2012, respectively. Premiums written represents the premiums charged on policies issued during a fiscal period, which is a statutory measure designed to determine production levels. | ||||||||||||
Consolidation and Basis of Presentation | ||||||||||||
The consolidated financial statements include the accounts of Mercury General Corporation and its subsidiaries: | ||||||||||||
Insurance Companies | ||||||||||||
Mercury Casualty Company (“MCC”) | Mercury National Insurance Company | |||||||||||
Mercury Insurance Company (“MIC”) | American Mercury Insurance Company | |||||||||||
California Automobile Insurance Company (“CAIC”) | American Mercury Lloyds Insurance Company(1) | |||||||||||
California General Underwriters Insurance Company, Inc. | Mercury County Mutual Insurance Company(2) | |||||||||||
Mercury Insurance Company of Illinois | Mercury Insurance Company of Florida | |||||||||||
Mercury Insurance Company of Georgia | Mercury Indemnity Company of America | |||||||||||
Mercury Indemnity Company of Georgia | ||||||||||||
Non-Insurance Companies | ||||||||||||
Mercury Select Management Company, Inc. | AIS Management LLC | |||||||||||
Mercury Insurance Services LLC | Auto Insurance Specialists LLC | |||||||||||
Animas Funding LLC (“AFL”)(3) | PoliSeek AIS Insurance Solutions, Inc. | |||||||||||
Fannette Funding LLC (“FFL”)(4) | ||||||||||||
__________ | ||||||||||||
-1 | American Mercury Lloyds Insurance Company is not owned but is controlled by the Company through its attorney-in-fact, Mercury Select Management Company, Inc. | |||||||||||
-2 | Mercury County Mutual Insurance Company is not owned but is controlled by the Company through a management contract. | |||||||||||
-3 | Special purpose investment vehicle formed in 2013. | |||||||||||
-4 | Special purpose investment vehicle formed in 2014. | |||||||||||
The consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“GAAP”), which differ in some respects from those filed in reports to insurance regulatory authorities. All intercompany transactions and balances have been eliminated. | ||||||||||||
Use of Estimates | ||||||||||||
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. These estimates require the Company to apply complex assumptions and judgments, and often the Company must make estimates about effects of matters that are inherently uncertain and will likely change in subsequent periods. The most significant assumptions in the preparation of these consolidated financial statements relate to reserves for losses and loss adjustment expenses. Actual results could differ from those estimates. | ||||||||||||
Investments | ||||||||||||
The Company applies the fair value option to all fixed maturity and equity securities and short-term investments at the time an eligible item is first recognized. The cost of investments sold is determined on a first-in and first-out method and realized gains and losses are included in net realized investment gains (losses). Gains and losses due to changes in fair value for items measured at fair value pursuant to application of the fair value option are included in net realized investment gains (losses), while interest and dividend income on the investment holdings are recognized on an accrual basis on each measurement date and are included in net investment income. The primary reasons for electing the fair value option were simplification and cost-benefit considerations as well as the expansion of the use of fair value measurement by the Company consistent with the long-term measurement objectives of the FASB for accounting for financial instruments. See Note 2 for additional information regarding the fair value option. | ||||||||||||
Fixed maturity securities include debt securities, which may have fixed or variable principal payment schedules, may be held for indefinite periods of time, and may be used as a part of the Company’s asset/liability strategy or sold in response to changes in interest rates, anticipated prepayments, risk/reward characteristics, liquidity needs, tax planning considerations, or other economic factors. Premiums and discounts on fixed maturities are amortized using first call date and are adjusted for anticipated prepayments. Premiums and discounts on mortgage-backed securities are adjusted for anticipated prepayment using the retrospective method, with the exception of some beneficial interests in securitized financial assets, which are accounted for using the prospective method. | ||||||||||||
Equity securities consist of non-redeemable preferred stocks, common stocks on which dividend income is partially tax-sheltered by the 70% corporate dividend received deduction, and a partnership interest in a private credit fund. | ||||||||||||
Short-term investments include money market accounts, options, short-term bonds that are highly rated short duration securities and redeemable within one year, and total return swaps. | ||||||||||||
The Company writes covered call options through listed and over-the-counter exchanges. When the Company writes an option, an amount equal to the premium received by the Company is recorded as a liability and is subsequently adjusted to the current fair value of the option written. Premiums received from writing options that expire unexercised are treated by the Company on the expiration date as realized gains from investments. If a call option is exercised, the premium is added to the proceeds from the sale of the underlying security or currency in determining whether the Company has realized a gain or loss. The Company, as writer of an option, bears the market risk of an unfavorable change in the price of the security underlying the written option. Liabilities for covered call options of $0.2 million and $0.1 million were included in other liabilities at December 31, 2014 and 2013, respectively. | ||||||||||||
Fair Value of Financial Instruments | ||||||||||||
The financial instruments recorded in the consolidated balance sheets include investments, receivables, total return swaps, interest rate swaps, accounts payable, equity contracts, and secured and unsecured notes payable. As discussed above, all investments are carried at fair value on the consolidated balance sheets, including $0 and $11.7 million of fixed maturities and equity securities, respectively, which are valued based on broker quotes for underlying debt and credit instruments and an estimated benchmark spread for similar assets in active markets. The fair value of the Company’s $120 million and $20 million secured notes, classified as Level 2 in the fair value hierarchy described in Note 3, is estimated based on assumptions and inputs, such as the market value of underlying collateral and reset rates, for similarly termed notes that are observable in the market. The fair value of the Company’s $150 million unsecured note, classified as Level 2 in the fair value hierarchy described in Note 3, is based on the unadjusted quoted price for similar notes in active markets. See Note 3 for methods and assumptions used in estimating fair values of the total return swaps, interest rate swaps, and equity contracts. Due to their short-term maturity, the carrying values of receivables and accounts payable approximate their fair market values. The following table presents estimated fair values of financial instruments at December 31, 2014 and 2013. | ||||||||||||
December 31, | ||||||||||||
2014 | 2013 | |||||||||||
(Amounts in thousands) | ||||||||||||
Assets | ||||||||||||
Investments | $ | 3,403,822 | $ | 3,158,312 | ||||||||
Total return swaps | $ | 0 | $ | 1,650 | ||||||||
Liabilities | ||||||||||||
Total return swaps | $ | 4,025 | $ | 0 | ||||||||
Equity contracts | $ | 194 | $ | 140 | ||||||||
Secured notes | $ | 140,000 | $ | 140,000 | ||||||||
Unsecured note | $ | 150,000 | $ | 50,000 | ||||||||
Total Return Swap Agreements | ||||||||||||
In 2014, the Company formed and consolidated FFL, a special purpose investment vehicle. The Company is the sole managing member of FFL. On February 13, 2014, FFL entered into a total return swap agreement with Citibank, N.A. (“Citibank”) subject to annual renewals. Under the total return swap agreement, FFL receives the income equivalent on underlying obligations and pays to Citibank interest equal to LIBOR plus 140 basis points on the outstanding notional amount of the underlying obligations, which was approximately $114 million as of December 31, 2014. The total return swap agreement is secured by approximately $30 million of U.S. Treasuries as collateral, which are included in short-term investments on the consolidated balance sheets. In the event of significant erosion in market value, FFL’s position in the loan portfolio will be reduced and the Company has the option of adding additional capital or terminating the total return swap agreement. The Company extended the agreement for one year. | ||||||||||||
In 2013, the Company formed and consolidated AFL, a special purpose investment vehicle. The Company is the sole managing member of AFL. On August 9, 2013, AFL entered into a three-year total return swap agreement with Citibank. Under the total return swap agreement, AFL receives the income equivalent on underlying obligations and pays to Citibank interest equal to LIBOR plus 120 basis points on the outstanding notional amount of the underlying obligations, which was approximately $144 million as of December 31, 2014. The total return swap agreement is secured by approximately $40 million of U.S. Treasuries as collateral, which are included in short-term investments on the consolidated balance sheets. In the event of a significant erosion in market value, AFL’s position in the loan portfolio will be reduced and the Company has the option of adding additional capital or terminating the total return swap agreement. | ||||||||||||
Securities on Deposit | ||||||||||||
As required by statute, the Company’s insurance subsidiaries have securities deposited with the Departments of Insurance or similar governmental agencies in the states in which they are licensed to operate with fair values totaling $18 million and $17 million at December 31, 2014 and 2013, respectively. | ||||||||||||
Deferred Policy Acquisition Costs | ||||||||||||
Deferred policy acquisition costs consist of commissions paid to outside agents, premium taxes, salaries, and certain other underwriting costs that are incremental or directly related to the successful acquisition of new and renewal insurance contracts and are amortized over the life of the related policy in proportion to premiums earned. Deferred policy acquisition costs are limited to the amount that will remain after deducting from unearned premiums and anticipated investment income, the estimated losses and loss adjustment expenses, and the servicing costs that will be incurred as premiums are earned. The Company’s deferred policy acquisition costs are further limited by excluding those costs not directly related to the successful acquisition of insurance contracts. Deferred policy acquisition cost amortization was $526.2 million, $505.5 million, and $477.8 million during the years ended December 31, 2014, 2013, and 2012, respectively. The Company does not defer advertising expenses but expenses them as incurred. The Company recorded net advertising expenses of approximately $23 million, $20 million, and $19 million during the years ended December 31, 2014, 2013, and 2012, respectively. | ||||||||||||
Fixed Assets | ||||||||||||
Fixed assets are stated at historical cost less accumulated depreciation and amortization. The useful life for buildings is 30 to 40 years. Furniture, equipment, and purchased software are depreciated on a combination of straight-line and accelerated methods over 3 to 7 years. The Company has capitalized certain consulting costs, payroll, and payroll-related costs for employees related to computer software developed for internal use, which are amortized on a straight-line method over the estimated useful life of the software, generally not exceeding 7 years . In accordance with applicable accounting standards, capitalization ceases no later than the point at which a computer software project is substantially complete and ready for its intended use. Leasehold improvements are amortized over the shorter of the useful life of the assets or the life of the associated lease. | ||||||||||||
The Company periodically assesses long-lived assets or asset groups including building and equipment, for recoverability when events or changes in circumstances indicate that their carrying amount may not be recoverable. If the Company identifies an indicator of impairment, the Company assesses recoverability by comparing the carrying amount of the asset to the sum of the undiscounted cash flows expected to result from the use and the eventual disposal of the asset. An impairment loss is recognized when the carrying amount is not recoverable and is measured as the excess of carrying value over fair value. There were no impairment charges during the three years ended December 31, 2014. | ||||||||||||
Goodwill and Other Intangible Assets | ||||||||||||
Goodwill and other intangible assets arise as a result of business acquisitions and consist of the excess of the cost of the acquisitions over the tangible and intangible assets acquired and liabilities assumed and identifiable intangible assets acquired. Identifiable intangible assets consist of the value of customer relationships, trade names, software and technology, and favorable leases, which are all subject to amortization. | ||||||||||||
The Company evaluates goodwill for impairment annually or whenever events or changes in circumstances indicate that it is more likely than not that the carrying amount of goodwill may exceed its implied fair value. The Company qualitatively determines whether, more likely than not, the fair value exceeds the carrying amount of a reporting unit. There are numerous assumptions and estimates underlying the qualitative assessments including future earnings, long-term strategies, and the Company’s annual planning and forecasting process. If these planned initiatives do not accomplish the targeted objectives, the assumptions and estimates underlying the qualitative assessments could be adversely affected and have a material effect upon the Company’s financial condition and results of operations. In addition, the Company evaluates other intangible assets using methods similar to those used for goodwill described above. As of December 31, 2014 and 2013, goodwill and other intangible impairment assessments indicated that there was no impairment. | ||||||||||||
Premium Revenue Recognition | ||||||||||||
Premium revenue is recognized on a pro-rata basis over the term of the policies in proportion to the amount of insurance protection provided. Premium revenue includes installment and other fees for services which are recognized in the periods in which the services are rendered. Unearned premiums represent the portion of the premium related to the unexpired policy term. Unearned premiums are predominantly computed monthly on a pro-rata basis and are stated gross of reinsurance deductions, with the reinsurance deduction recorded in other receivables. Net premiums written, a statutory measure designed to determine production levels, were $2.84 billion, $2.73 billion, and $2.65 billion in 2014, 2013, and 2012, respectively. | ||||||||||||
Losses and Loss Adjustment Expenses | ||||||||||||
Unpaid losses and loss adjustment expenses are determined in amounts estimated to cover incurred losses and loss adjustment expenses and established based upon the Company’s assessment of claims pending and the development of prior years’ loss liabilities. These amounts include liabilities based upon individual case estimates for reported losses and loss adjustment expenses and estimates of such amounts that are incurred but not reported. Changes in the estimated liability are charged or credited to operations as the losses and loss adjustment expenses are reestimated. The liability is stated net of anticipated salvage and subrogation recoveries. The amount of reinsurance recoverable is included in other receivables. | ||||||||||||
Estimating loss reserves is a difficult process as many factors can ultimately affect the final settlement of a claim and, therefore, the reserve that is required. Changes in the regulatory and legal environment, results of litigation, medical costs, the cost of repair materials, and labor rates, among other factors, can impact ultimate claim costs. In addition, time can be a critical part of reserving determinations since the longer the span between the incidence of a loss and the payment or settlement of a claim, the more variable the ultimate settlement amount could be. Accordingly, short-tail claims, such as property damage claims, tend to be more reasonably predictable than long-tail liability claims, such as those involving the Company’s bodily injury (BI) coverages. Management believes that the liability for losses and loss adjustment expenses is adequate to cover the ultimate net cost of losses and loss adjustment expenses incurred to date. Since the provisions for loss reserves are necessarily based upon estimates, the ultimate liability may be more or less than such provisions. | ||||||||||||
The Company analyzes loss reserves quarterly primarily using the incurred loss, claim count development, and average severity methods described below. The Company also uses the paid loss development method to analyze loss adjustment expense reserves as part of its reserve analysis. When deciding among methods to use, the Company evaluates the credibility of each method based on the maturity of the data available and the claims settlement practices for each particular line of business or coverage within a line of business. When establishing the reserve, the Company will generally analyze the results from all of the methods used rather than relying on a single method. While these methods are designed to determine the ultimate losses on claims under the Company’s policies, there is inherent uncertainty in all actuarial models since they use historical data to project outcomes. The Company believes that the techniques it uses provide a reasonable basis in estimating loss reserves. | ||||||||||||
• | The incurred loss development method analyzes historical incurred case loss (case reserves plus paid losses) development to estimate ultimate losses. The Company applies development factors against current case incurred losses by accident period to calculate ultimate expected losses. The Company believes that the incurred loss development method provides a reasonable basis for evaluating ultimate losses, particularly in the Company’s larger, more established lines of business which have a long operating history. | |||||||||||
• | The average severity method analyzes historical loss payments and/or incurred losses divided by closed claims and/or total claims to calculate an estimated average cost per claim. From this, the expected ultimate average cost per claim can be estimated. The average severity method coupled with the claim count development method provide meaningful information regarding inflation and frequency trends that the Company believes is useful in establishing reserves. The claim count development method analyzes historical claim count development to estimate future incurred claim count development for current claims. The Company applies these development factors against current claim counts by accident period to calculate ultimate expected claim counts. | |||||||||||
• | The paid loss development method analyzes historical payment patterns to estimate the amount of losses yet to be paid. The Company uses this method for losses and loss adjustment expenses. | |||||||||||
The Company analyzes catastrophe losses separately from non-catastrophe losses. For catastrophe losses, the Company determines claim counts based on claims reported and development expectations from previous catastrophes and applies an average expected loss per claim based on reserves established by adjusters and average losses on previous similar catastrophes. | ||||||||||||
Derivative Financial Instruments | ||||||||||||
The Company accounts for all derivative instruments, other than those that meet the normal purchases and sales exception, as either an asset or liability, measured at fair value, which is based on information obtained from independent parties. In addition, changes in fair value are recognized in earnings unless specific hedge accounting criteria are met. The Company’s derivative instruments include a total return swaps and interest rate swaps. See Note 7. | ||||||||||||
Earnings Per Share | ||||||||||||
Basic earnings per share excludes dilution and reflects net income divided by the weighted average shares of common stock outstanding during the period presented. Diluted earnings per share is based on the weighted average shares of common stock and potential dilutive common stock outstanding during the period presented. At December 31, 2014 and 2013, potential dilutive common stocks consist of outstanding stock options. Note 15 contains the required disclosures relating to the calculation of basic and diluted earnings per share. | ||||||||||||
Segment Reporting | ||||||||||||
Operating segments are components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and assessing performance. The Company does not have any operations that require separate disclosure as reportable operating segments for the periods presented. | ||||||||||||
The Company's annual direct premiums written by lines of insurance were: | ||||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(Amounts in thousands) | ||||||||||||
Private passenger automobile | $ | 2,223,073 | $ | 2,165,557 | $ | 2,140,531 | ||||||
Homeowners | 374,436 | 340,013 | 318,295 | |||||||||
Commercial automobile | 135,928 | 104,689 | 74,655 | |||||||||
Other lines | 119,732 | 127,213 | 122,239 | |||||||||
Total | $ | 2,853,169 | $ | 2,737,472 | $ | 2,655,720 | ||||||
Income Taxes | ||||||||||||
Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial reporting basis and the respective tax basis of the Company’s assets and liabilities, and expected benefits of utilizing net operating loss, capital loss, and tax-credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates or laws is recognized in earnings in the period that includes the enactment date. | ||||||||||||
At December 31, 2014, the Company’s deferred income taxes were in a net liability position, which included a combination of ordinary and capital deferred tax benefits. In assessing the ability to realize deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon generating sufficient taxable income of the appropriate character within the carryback and carryforward periods available under the tax law. Management considers the reversal of deferred tax liabilities, projected future taxable income of an appropriate nature, and tax-planning strategies in making this assessment. The Company believes that through the use of prudent tax planning strategies and the generation of capital gains, sufficient income will be realized in order to maximize the full benefits of its deferred tax assets. Although realization is not assured, management believes that it is more likely than not that the Company’s deferred tax assets will be realized. | ||||||||||||
Reinsurance | ||||||||||||
Liabilities for unearned premiums and unpaid losses are stated in the accompanying consolidated financial statements before deductions for ceded reinsurance. The ceded amounts are immaterial and are carried in other receivables. Earned premiums are stated net of deductions for ceded reinsurance. | ||||||||||||
The Insurance Companies, as primary insurers, are required to pay losses to the extent reinsurers are unable to discharge their obligations under the reinsurance agreements. | ||||||||||||
Share-Based Compensation | ||||||||||||
Share-based compensation expense for all share-based payment awards granted or modified is based on the estimated grant-date fair value. The Company recognizes these compensation costs on a straight-line basis over the requisite service period of the award, which is the option vesting term of four or five years for options granted prior to 2008 and four years for options granted subsequent to January 1, 2008, for only those shares expected to vest. The fair value of stock option awards is estimated using the Black-Scholes option pricing model with the grant-date assumptions and weighted-average fair values. | ||||||||||||
The fair value of each restricted share grant was determined based on the market price on the grant date. Compensation cost is recognized based on management’s best estimate that performance goals will be achieved. If such goals are not met, no compensation cost is recognized and any recognized compensation cost would be reversed. See Note 14 for additional disclosures. | ||||||||||||
Recently Issued Accounting Standards | ||||||||||||
In May 2014, the FASB issued a new standard that requires entities to apply a five-step model to determine the amount and timing of revenue recognition. The model specifies, among other criteria, that revenue should be recognized when an entity transfers control of goods or services to a customer at the amount at which the entity expects to be entitled. The new standard will be effective for fiscal years and interim periods within those years that begin after December 15, 2016. Early adoption is not permitted. The Company is in the process of evaluating the impact on the consolidated financial statements. | ||||||||||||
In July 2013, the FASB issued a new standard that requires entities to present an unrecognized tax benefit as a reduction of a deferred tax asset for a net operating loss carryforward, or similar tax loss or tax credit carryforward, rather than as a liability when the uncertain tax position would reduce the net operating loss or other carryforward under the tax law of the applicable jurisdiction and when the entity intends to use the deferred tax asset for that purpose. The Company adopted the new standard which became effective for the interim period ended March 31, 2014. The adoption of the new standard did not have a material impact on the Company’s consolidated financial statements. |
Investments
Investments | 12 Months Ended | |||||||||||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||||||||||
Investments [Abstract] | ||||||||||||||||||||||||||||||||||||
Investments | Investments | |||||||||||||||||||||||||||||||||||
The following table presents gains (losses) due to changes in fair value of investments that are measured at fair value pursuant to application of the fair value option: | ||||||||||||||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||||||||||||||||
Fixed maturity securities | $ | 77,208 | $ | (100,703 | ) | $ | 36,317 | |||||||||||||||||||||||||||||
Equity securities | (32,922 | ) | 56,822 | 9,158 | ||||||||||||||||||||||||||||||||
Short-term investments | (527 | ) | (156 | ) | 34 | |||||||||||||||||||||||||||||||
Total | $ | 43,759 | $ | (44,037 | ) | $ | 45,509 | |||||||||||||||||||||||||||||
A summary of net realized investment gains (losses) is as follows: | ||||||||||||||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||||||||||||||||
Net realized gains (losses) from investments and other assets and liabilities: | ||||||||||||||||||||||||||||||||||||
Fixed maturity securities | $ | 74,489 | $ | (95,225 | ) | $ | 47,707 | |||||||||||||||||||||||||||||
Equity securities | 8,715 | 80,910 | 16,679 | |||||||||||||||||||||||||||||||||
Short-term investments | (2,470 | ) | (1,059 | ) | (686 | ) | ||||||||||||||||||||||||||||||
Total return swap | (2,969 | ) | 2,176 | 0 | ||||||||||||||||||||||||||||||||
Options | 3,419 | 1,776 | 2,680 | |||||||||||||||||||||||||||||||||
Total | $ | 81,184 | $ | (11,422 | ) | $ | 66,380 | |||||||||||||||||||||||||||||
Gross gains and losses realized on the sales of investments, excluding options, are shown below: | ||||||||||||||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||||||||||||||||
Gross | Gross | Net | Gross | Gross | Net | Gross | Gross | Net | ||||||||||||||||||||||||||||
Realized | Realized | Realized | Realized | Realized | Realized | |||||||||||||||||||||||||||||||
Gains | Losses | Gains | Losses | Gains | Losses | |||||||||||||||||||||||||||||||
Fixed maturity securities | $ | 7,015 | $ | (9,734 | ) | $ | (2,719 | ) | $ | 9,320 | $ | (3,842 | ) | $ | 5,478 | $ | 11,473 | $ | (83 | ) | $ | 11,390 | ||||||||||||||
Equity securities | 59,342 | (17,705 | ) | 41,637 | 82,385 | (58,297 | ) | 24,088 | 19,538 | (12,017 | ) | 7,521 | ||||||||||||||||||||||||
Short-term investments | 0 | (1,943 | ) | (1,943 | ) | 0 | (903 | ) | (903 | ) | 2 | (722 | ) | (720 | ) | |||||||||||||||||||||
Contractual Maturity | ||||||||||||||||||||||||||||||||||||
At December 31, 2014, fixed maturity holdings rated below investment grade and non-rated comprised 1.4% of total investments at fair value. Additionally, the Company owns securities that are credit enhanced by financial guarantors that are subject to uncertainty related to market perception of the guarantors’ ability to perform. Determining the estimated fair value of municipal bonds could become more difficult should markets for these securities become illiquid. The estimated fair values at December 31, 2014 by contractual maturity are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. | ||||||||||||||||||||||||||||||||||||
Estimated Fair Value | ||||||||||||||||||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||||||||||||||||
Fixed maturity securities: | ||||||||||||||||||||||||||||||||||||
Due in one year or less | $ | 42,637 | ||||||||||||||||||||||||||||||||||
Due after one year through five years | 355,106 | |||||||||||||||||||||||||||||||||||
Due after five years through ten years | 593,934 | |||||||||||||||||||||||||||||||||||
Due after ten years | 1,626,723 | |||||||||||||||||||||||||||||||||||
Total | $ | 2,618,400 | ||||||||||||||||||||||||||||||||||
Investment Income | ||||||||||||||||||||||||||||||||||||
A summary of net investment income is shown in the following table: | ||||||||||||||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||||||||||||||||
Fixed maturity securities | $ | 104,946 | $ | 107,926 | $ | 117,557 | ||||||||||||||||||||||||||||||
Equity securities | 17,313 | 18,249 | 15,831 | |||||||||||||||||||||||||||||||||
Short-term investments | 8,561 | 2,702 | 2,073 | |||||||||||||||||||||||||||||||||
Total investment income | $ | 130,820 | $ | 128,877 | $ | 135,461 | ||||||||||||||||||||||||||||||
Less: investment expense | (5,097 | ) | (4,339 | ) | (3,565 | ) | ||||||||||||||||||||||||||||||
Net investment income | $ | 125,723 | $ | 124,538 | $ | 131,896 | ||||||||||||||||||||||||||||||
Fair_Value_Measurement
Fair Value Measurement | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||||||||||||||||
Fair Value Measurement | Fair Value Measurement | |||||||||||||||
The Company employs a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The fair value of a financial instrument is the amount 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 using the exit price. Accordingly, when market observable data are not readily available, the Company’s own assumptions are set to reflect those that market participants would be presumed to use in pricing the asset or liability at the measurement date. Assets and liabilities recorded on the consolidated balance sheets at fair value are categorized based on the level of judgment associated with inputs used to measure their fair value and the level of market price observability, as follows: | ||||||||||||||||
Level 1 | Unadjusted quoted prices are available in active markets for identical assets or liabilities as of the reporting date. | |||||||||||||||
Level 2 | Pricing inputs are other than quoted prices in active markets, which are based on the following: | |||||||||||||||
• | Quoted prices for similar assets or liabilities in active markets; | |||||||||||||||
• | Quoted prices for identical or similar assets or liabilities in non-active markets; or | |||||||||||||||
• | Either directly or indirectly observable inputs as of the reporting date. | |||||||||||||||
Level 3 | Pricing inputs are unobservable and significant to the overall fair value measurement, and the determination of fair value requires significant management judgment or estimation. | |||||||||||||||
In certain cases, inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy within which the fair value measurement in its entirety falls has been determined based on the lowest level input that is significant to the fair value measurement in its entirety. Thus, a Level 3 fair value measurement may include inputs that are observable (Level 1 or Level 2) and unobservable (Level 3). The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and consideration of factors specific to the asset or liability. | ||||||||||||||||
The Company uses prices and inputs that are current as of the measurement date, including during periods of market disruption. In periods of market disruption, the ability to observe prices and inputs may be reduced for many instruments. This condition could cause an instrument to be reclassified from Level 1 to Level 2, or from Level 2 to Level 3. The Company recognizes transfers between levels at either the actual date of the event or a change in circumstances that caused the transfer. | ||||||||||||||||
Summary of Significant Valuation Techniques for Financial Assets and Financial Liabilities | ||||||||||||||||
The Company’s fair value measurements are based on the market approach, which utilizes market transaction data for the same or similar instruments. | ||||||||||||||||
The Company obtained unadjusted fair values on 99.7% of its portfolio from an independent pricing service. For 0.3% of its portfolio, classified as Level 3, the Company obtained specific unadjusted broker quotes based on net fund value and, to a lesser extent, unobservable inputs from at least one knowledgeable outside security broker to determine the fair value as of December 31, 2014. | ||||||||||||||||
Level 1 Measurements—Fair values of financial assets and financial liabilities are obtained from an independent pricing service, and are based on unadjusted quoted prices for identical assets or liabilities in active markets. Additional pricing services and closing exchange values are used as a comparison to ensure that reasonable fair values are used in pricing the investment portfolio. | ||||||||||||||||
U.S. government bonds and agencies/Short-term bonds: Valued using unadjusted quoted market prices for identical assets in active markets. | ||||||||||||||||
Common stock: Comprised of actively traded, exchange listed U.S. and international equity securities and valued based on unadjusted quoted prices for identical assets in active markets. | ||||||||||||||||
Money market instruments: Valued based on unadjusted quoted prices for identical assets. | ||||||||||||||||
Equity contracts: Comprised of free-standing exchange listed derivatives that are actively traded and valued based on quoted prices for identical instruments in active markets. | ||||||||||||||||
Level 2 Measurements—Fair values of financial assets and financial liabilities are obtained from an independent pricing service or outside brokers, and are based on prices for similar assets or liabilities in active markets or valuation models whose inputs are observable, directly or indirectly, for substantially the full term of the asset or liability. Additional pricing services are used as a comparison to ensure reliable fair values are used in pricing the investment portfolio. | ||||||||||||||||
Municipal securities: Valued based on models or matrices using inputs such as quoted prices for identical or similar assets in active markets. | ||||||||||||||||
Mortgage-backed securities: Comprised of securities that are collateralized by mortgage loans and valued based on models or matrices using multiple observable inputs, such as benchmark yields, reported trades and broker/dealer quotes, for identical or similar assets in active markets. The Company had holdings of $32.5 million and $21.9 million at December 31, 2014 and 2013, respectively, in commercial mortgage-backed securities. | ||||||||||||||||
Corporate securities/Short-term bonds: Valued based on a multi-dimensional model using multiple observable inputs, such as benchmark yields, reported trades, broker/dealer quotes and issue spreads, for identical or similar assets in active markets. | ||||||||||||||||
Non-redeemable preferred stock: Valued based on observable inputs, such as underlying and common stock of same issuer and appropriate spread over a comparable U.S. Treasury security, for identical or similar assets in active markets. | ||||||||||||||||
Total return swap/Interest rate swap: Valued based on models using inputs such as interest rate yield curves, underlying debt/credit instruments and the appropriate benchmark spread for similar assets in active markets, observable for substantially the full term of the contract. | ||||||||||||||||
Collateralized loan obligations: Valued based on underlying debt instruments and the appropriate benchmark spread for similar assets in active markets. | ||||||||||||||||
Level 3 Measurements—Fair values of financial assets are based on inputs that are both unobservable and significant to the overall fair value measurement, including any items in which the evaluated prices obtained elsewhere were deemed to be of a distressed trading level. | ||||||||||||||||
Collateralized debt obligations/Partnership interest in a private credit fund: Valued based on underlying debt/credit instruments and the appropriate benchmark spread for similar assets in active markets; taking into consideration unobservable inputs related to liquidity assumptions. | ||||||||||||||||
The Company’s financial instruments at fair value are reflected in the consolidated balance sheets on a trade-date basis. Related unrealized gains or losses are recognized in net realized investment gains (losses) in the consolidated statements of operations. Fair value measurements are not adjusted for transaction costs. | ||||||||||||||||
The following tables present information about the Company’s assets and liabilities measured at fair value on a recurring basis as of December 31, 2014 and 2013, and indicate the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value: | ||||||||||||||||
December 31, 2014 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
(Amounts in thousands) | ||||||||||||||||
Assets | ||||||||||||||||
Fixed maturity securities: | ||||||||||||||||
U.S. government bonds and agencies | $ | 16,108 | $ | 0 | $ | 0 | $ | 16,108 | ||||||||
Municipal securities | 0 | 2,275,455 | 0 | 2,275,455 | ||||||||||||
Mortgage-backed securities | 0 | 47,691 | 0 | 47,691 | ||||||||||||
Corporate securities | 0 | 256,930 | 0 | 256,930 | ||||||||||||
Collateralized loan obligations | 0 | 22,216 | 0 | 22,216 | ||||||||||||
Equity securities: | ||||||||||||||||
Common stock: | ||||||||||||||||
Public utilities | 105,485 | 0 | 0 | 105,485 | ||||||||||||
Banks, trusts and insurance companies | 9,757 | 0 | 0 | 9,757 | ||||||||||||
Energy and other | 257,356 | 0 | 0 | 257,356 | ||||||||||||
Non-redeemable preferred stock | 0 | 28,563 | 0 | 28,563 | ||||||||||||
Partnership interest in a private credit fund | 0 | 0 | 11,719 | 11,719 | ||||||||||||
Short-term investments: | ||||||||||||||||
Short-term bonds | 69,999 | 18,362 | 0 | 88,361 | ||||||||||||
Money market instruments | 284,181 | 0 | 0 | 284,181 | ||||||||||||
Total assets at fair value | $ | 742,886 | $ | 2,649,217 | $ | 11,719 | $ | 3,403,822 | ||||||||
Liabilities | ||||||||||||||||
Other liabilities: | ||||||||||||||||
Total return swaps | $ | 0 | $ | 4,025 | $ | 0 | $ | 4,025 | ||||||||
Options sold | 194 | 0 | 0 | 194 | ||||||||||||
Total liabilities at fair value | $ | 194 | $ | 4,025 | $ | 0 | $ | 4,219 | ||||||||
31-Dec-13 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
(Amounts in thousands) | ||||||||||||||||
Assets | ||||||||||||||||
Fixed maturity securities: | ||||||||||||||||
U.S. government bonds and agencies | $ | 16,096 | $ | 0 | $ | 0 | $ | 16,096 | ||||||||
Municipal securities | 0 | 2,235,323 | 0 | 2,235,323 | ||||||||||||
Mortgage-backed securities | 0 | 40,247 | 0 | 40,247 | ||||||||||||
Corporate securities | 0 | 264,685 | 0 | 264,685 | ||||||||||||
Collateralized debt obligations | 0 | 0 | 4,302 | 4,302 | ||||||||||||
Equity securities: | ||||||||||||||||
Common stock: | ||||||||||||||||
Public utilities | 85,287 | 0 | 0 | 85,287 | ||||||||||||
Banks, trusts and insurance companies | 2,927 | 0 | 0 | 2,927 | ||||||||||||
Energy and other | 151,554 | 0 | 0 | 151,554 | ||||||||||||
Non-redeemable preferred stock | 0 | 29,567 | 0 | 29,567 | ||||||||||||
Partnership interest in a private credit fund | 0 | 0 | 12,548 | 12,548 | ||||||||||||
Short-term investments: | ||||||||||||||||
Short-term bonds | 39,998 | 12,890 | 0 | 52,888 | ||||||||||||
Money market instruments | 262,888 | 0 | 0 | 262,888 | ||||||||||||
Other assets: | ||||||||||||||||
Total return swap | 0 | 1,650 | 0 | 1,650 | ||||||||||||
Total assets at fair value | $ | 558,750 | $ | 2,584,362 | $ | 16,850 | $ | 3,159,962 | ||||||||
Liabilities | ||||||||||||||||
Other liabilities: | ||||||||||||||||
Options sold | $ | 140 | $ | 0 | $ | 0 | $ | 140 | ||||||||
Total liabilities at fair value | $ | 140 | $ | 0 | $ | 0 | $ | 140 | ||||||||
The following table presents a summary of changes in fair value of Level 3 financial assets and financial liabilities held at fair value at December 31: | ||||||||||||||||
2014 | 2013 | |||||||||||||||
Collateralized | Partnership | Collateralized | Partnership | |||||||||||||
Debt | Interest in a | Debt | Interest in a | |||||||||||||
Obligations | Private Credit | Obligations | Private Credit | |||||||||||||
Fund | Fund | |||||||||||||||
(Amounts in thousands) | ||||||||||||||||
Beginning Balance | $ | 4,302 | $ | 12,548 | $ | 42,801 | $ | 11,306 | ||||||||
Realized gains included in earnings | (755 | ) | (829 | ) | 740 | 1,242 | ||||||||||
Purchase | 0 | 0 | 0 | 0 | ||||||||||||
Sales | (3,547 | ) | 0 | (30,975 | ) | 0 | ||||||||||
Settlements | 0 | 0 | (8,264 | ) | 0 | |||||||||||
Ending Balance | $ | 0 | $ | 11,719 | $ | 4,302 | $ | 12,548 | ||||||||
The amount of total (losses) gains for the period included in earnings attributable to assets still held at December 31 | $ | 0 | $ | (829 | ) | $ | 321 | $ | 1,242 | |||||||
There were no transfers between Levels 1, 2, and 3 of the fair value hierarchy in 2014 and 2013. | ||||||||||||||||
At December 31, 2014, the Company did not have any nonrecurring fair value measurements of nonfinancial assets or nonfinancial liabilities. |
Fixed_Assets
Fixed Assets | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Property, Plant and Equipment [Abstract] | ||||||||
Fixed Assets | Fixed Assets | |||||||
Fixed assets consist of the following: | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
(Amounts in thousands) | ||||||||
Land | $ | 26,770 | $ | 26,770 | ||||
Buildings and improvements | 131,174 | 127,940 | ||||||
Furniture and equipment | 107,288 | 108,819 | ||||||
Capitalized software | 162,065 | 147,140 | ||||||
Leasehold improvements | 8,991 | 8,610 | ||||||
436,288 | 419,279 | |||||||
Less accumulated depreciation and amortization | (277,312 | ) | (262,563 | ) | ||||
Fixed assets, net | $ | 158,976 | $ | 156,716 | ||||
Depreciation expense, including amortization of leasehold improvements, was $22.1 million, $24.6 million, and $30.8 million during 2014, 2013, and 2012, respectively. |
Deferred_Policy_Acquisition_Co
Deferred Policy Acquisition Costs | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Deferred Policy Acquisition Costs Disclosures [Abstract] | ||||||||||||
Deferred Policy Acquisition Costs | Deferred Policy Acquisition Costs | |||||||||||
Deferred policy acquisition costs are as follows: | ||||||||||||
December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(Amounts in thousands) | ||||||||||||
Balance, beginning of year | $ | 194,466 | $ | 185,910 | $ | 171,430 | ||||||
Policy acquisition costs deferred | 528,944 | 514,073 | 492,268 | |||||||||
Amortization | (526,208 | ) | (505,517 | ) | (477,788 | ) | ||||||
Balance, end of year | $ | 197,202 | $ | 194,466 | $ | 185,910 | ||||||
Notes_Payable
Notes Payable | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Notes Payable [Abstract] | ||||||||||||
Notes Payable | Notes Payable | |||||||||||
Notes payable consists of the following: | ||||||||||||
December 31, | ||||||||||||
Lender | Interest Rate | Expiration | 2014 | 2013 | ||||||||
(Amounts in thousands) | ||||||||||||
Secured credit facility | Bank of America | LIBOR plus 40 basis points | 3-Dec-17 | $ | 120,000 | $ | 120,000 | |||||
Secured loan | Union Bank | LIBOR plus 40 basis points | 3-Dec-17 | 20,000 | 20,000 | |||||||
Unsecured credit facility | Bank of America and Union Bank | -1 | 3-Dec-19 | 150,000 | 50,000 | |||||||
Total | $ | 290,000 | $ | 190,000 | ||||||||
__________ | ||||||||||||
-1 | On July 2, 2013, the Company entered into an unsecured $200 million five-year revolving credit facility. The interest rate on borrowings under the credit facility is based on the Company's debt to total capital ratio and ranges from LIBOR plus 112.5 basis points when the ratio is under 15% to LIBOR plus 162.5 basis points when the ratio is above 25%. Commitment fees for the undrawn portions of the credit facility range from 12.5 basis points when the ratio is under 15% to 22.5 basis points when the ratio is above 25%. Effective December 3, 2014, the Company extended the maturity date of the unsecured credit facility from June 30, 2018 to December 3, 2019, and expanded the borrowing capacity from $200 million to $250 million. In 2014, the interest rate was LIBOR plus 112.5 basis points on the $150 million of borrowings and 12.5 basis points on the undrawn portions of the credit facility. | |||||||||||
The $120 million credit facility is secured by municipal bonds held as collateral. The collateral requirement is calculated as the fair market value of the municipal bonds held as collateral multiplied by the advance rates, which vary based on the credit quality and duration of the assets held and range between 75% and 100% of the fair value of each bond. Effective December 3, 2014, the Company extended the maturity date of the $120 million credit facility from July 31, 2016 to December 3, 2017. | ||||||||||||
On December 12, 2014, the Company extended the maturity date of the $20 million bank loan from January 2, 2015 to December 3, 2017. The $20 million bank loan has collateral requirements similar to those of the $120 million credit facility. | ||||||||||||
The credit facilities and bank loan contain financial covenants pertaining to minimum statutory surplus, debt to capital ratio, and RBC ratio. except that California Automobile Insurance Company's Risk Based Capital Ratio as of December 31, 2014 was below the required level. The Company received a waiver of the non-compliance and contributed $10 million to the statutory surplus of CAIC to comply with the covenant. The Company will continue to monitor projected RBC to evaluate compliance with this covenant. Notwithstanding the loan covenant, CAIC's RBC ratio is well in excess of the regulatory minimum capital requirements. | ||||||||||||
The aggregated maturities for notes payable are as follows: | ||||||||||||
Year | Maturity | |||||||||||
(Amounts in thousands) | ||||||||||||
2015 | $ | 0 | ||||||||||
2016 | $ | 0 | ||||||||||
2017 | $ | 140,000 | ||||||||||
2018 | $ | 0 | ||||||||||
2019 | $ | 150,000 | ||||||||||
For additional disclosures regarding methods and assumptions used in estimating fair values of interest rate swap agreements associated with the Company’s loans listed above, see Note 7. |
Derivative_Financial_Instrumen
Derivative Financial Instruments | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
General Discussion of Derivative Instruments and Hedging Activities [Abstract] | ||||||||||||||||
Derivative Financial Instruments | Derivative Financial Instruments | |||||||||||||||
The Company is exposed to certain risks relating to its ongoing business operations. The primary risks managed by using derivative instruments are equity price risk and interest rate risk. Equity contracts on various equity securities are intended to manage the price risk associated with forecasted purchases or sales of such securities. Interest rate swaps are intended to manage the interest rate risk associated with the Company’s debts with fixed or floating rates. | ||||||||||||||||
On February 13, 2014, FFL entered into a total return swap agreement with Citibank subject to renew annually. Under the total return swap agreement, FFL receives the income equivalent on underlying obligations due to Citibank and pays to Citibank interest equal to LIBOR plus 140 basis points on the outstanding notional amount of the underlying obligations, which was approximately $114 million as of December 31, 2014. The total return swap is secured by approximately $30 million of U.S. Treasuries as collateral, which are included in short-term investments on the consolidated balance sheets. The Company extended the agreement for one year. | ||||||||||||||||
On August 9, 2013, AFL entered into a three-year total return swap agreement with Citibank. Under the total return swap agreement, AFL receives the income equivalent on underlying obligations due to Citibank and pays to Citibank interest equal to LIBOR plus 120 basis points on the outstanding notional amount of the underlying obligations, which was approximately $144 million as of December 31, 2014. The total return swap is secured by approximately $40 million of U.S. Treasuries as collateral, which are included in short-term investments on the consolidated balance sheets. | ||||||||||||||||
On February 6, 2009, the Company entered into an interest rate swap of its floating LIBOR rate on a $120 million credit facility for a fixed rate of 1.93% that matured on January 3, 2012. The purpose of the swap was to offset the variability of cash flows resulting from the variable interest rate. The swap was not designated as a hedge and changes in the fair value were adjusted through the consolidated statements of operations in the period of change. | ||||||||||||||||
Fair value amounts, and gains and losses on derivative instruments | ||||||||||||||||
The following tables present the location and amounts of derivative fair values in the consolidated balance sheets and derivative gains in the consolidated statements of operations: | ||||||||||||||||
Asset Derivatives | Liability Derivatives | |||||||||||||||
December 31, 2014 | December 31, 2013 | December 31, 2014 | December 31, 2013 | |||||||||||||
(Amounts in thousands) | ||||||||||||||||
Total return swap - Other assets | $ | 0 | $ | 1,650 | $ | 0 | $ | 0 | ||||||||
Equity contracts - Other liabilities | 0 | 0 | (194 | ) | (140 | ) | ||||||||||
Total return swap - Other liabilities | 0 | 0 | (4,025 | ) | 0 | |||||||||||
Total derivatives | $ | 0 | $ | 1,650 | $ | (4,219 | ) | $ | (140 | ) | ||||||
(Losses) Gains Recognized in Income | ||||||||||||||||
Year Ended December 31, | ||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
(Amounts in thousands) | ||||||||||||||||
Total return swap - Net realized investment gains (losses) | $ | (2,969 | ) | $ | 2,176 | $ | 0 | |||||||||
Equity contracts—Net realized investment gains (losses) | 3,419 | 1,776 | 2,680 | |||||||||||||
Interest rate contract - Other revenue | 0 | 103 | 567 | |||||||||||||
Total | $ | 450 | $ | 4,055 | $ | 3,247 | ||||||||||
Most equity contracts consist of covered calls. The Company writes covered calls on underlying equity positions held as an enhanced income strategy that is permitted for the Company’s insurance subsidiaries under statutory regulations. The Company manages the risk associated with covered calls through strict capital limitations and asset diversification throughout various industries. For additional disclosures regarding equity contracts, see Note 3. |
Goodwill_and_Other_Intangible_
Goodwill and Other Intangible Assets | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets | |||||||||||||
Goodwill | ||||||||||||||
There were no changes in the carrying amount of goodwill for the year ended December 31, 2014. Goodwill is reviewed for impairment on an annual basis and more frequently if potential impairment indicators exist. No impairment indications were identified during any of the periods presented. | ||||||||||||||
Other Intangible Assets | ||||||||||||||
The following table presents the components of other intangible assets: | ||||||||||||||
Gross Carrying | Accumulated | Net Carrying | Useful Lives | |||||||||||
Amount | Amortization | Amount | ||||||||||||
(Amounts in thousands) | (in years) | |||||||||||||
As of December 31, 2014: | ||||||||||||||
Customer relationships | $ | 51,755 | $ | (29,402 | ) | $ | 22,353 | 11 | ||||||
Trade names | 15,400 | (3,850 | ) | 11,550 | 24 | |||||||||
Technology | 4,300 | (2,580 | ) | 1,720 | 10 | |||||||||
Favorable leases | 1,725 | (1,725 | ) | 0 | 3 | |||||||||
Total intangible assets, net | $ | 73,180 | $ | (37,557 | ) | $ | 35,623 | |||||||
As of December 31, 2013: | ||||||||||||||
Customer relationships | $ | 51,755 | $ | (24,494 | ) | $ | 27,261 | 11 | ||||||
Trade names | 15,400 | (3,208 | ) | 12,192 | 24 | |||||||||
Technology | 4,300 | (2,150 | ) | 2,150 | 10 | |||||||||
Favorable leases | 1,725 | (1,725 | ) | 0 | 3 | |||||||||
Total intangible assets, net | $ | 73,180 | $ | (31,577 | ) | $ | 41,603 | |||||||
Intangible assets are amortized on a straight-line basis over their useful lives. Intangible assets amortization expenses were $6.0 million, $6.0 million, and $6.2 million during 2014, 2013, and 2012, respectively. None of the intangible assets are anticipated to have a residual value. The following table presents the estimated future amortization expense related to intangible assets as of December 31, 2014: | ||||||||||||||
Year Ending December 31, | Amortization Expense | |||||||||||||
(Amounts in thousands) | ||||||||||||||
2015 | $ | 5,980 | ||||||||||||
2016 | 5,980 | |||||||||||||
2017 | 5,253 | |||||||||||||
2018 | 5,239 | |||||||||||||
2019 | 4,809 | |||||||||||||
Thereafter | 8,362 | |||||||||||||
Total | $ | 35,623 | ||||||||||||
Income_Taxes
Income Taxes | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Components of Income Tax Expense (Benefit), Continuing Operations [Abstract] | ||||||||||||
Income Taxes | Income Taxes | |||||||||||
Income tax provision | ||||||||||||
The Company and its subsidiaries file a consolidated federal income tax return. The provision for income tax expense consists of the following components: | ||||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(Amounts in thousands) | ||||||||||||
Federal | ||||||||||||
Current | $ | 44,469 | $ | 30,266 | $ | 9,340 | ||||||
Deferred | 20,444 | (14,970 | ) | 6,238 | ||||||||
$ | 64,913 | $ | 15,296 | $ | 15,578 | |||||||
State | ||||||||||||
Current | $ | 4,421 | $ | 5,234 | $ | 2,079 | ||||||
Deferred | 142 | (577 | ) | 742 | ||||||||
$ | 4,563 | $ | 4,657 | $ | 2,821 | |||||||
Total | ||||||||||||
Current | $ | 48,890 | $ | 35,500 | $ | 11,419 | ||||||
Deferred | 20,586 | (15,547 | ) | 6,980 | ||||||||
Total | $ | 69,476 | $ | 19,953 | $ | 18,399 | ||||||
The income tax provision reflected in the consolidated statements of operations is reconciled to the federal income tax on income before income taxes based on a statutory rate of 35% as shown in the table below: | ||||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(Amounts in thousands) | ||||||||||||
Computed tax expense at 35% | $ | 86,598 | $ | 46,234 | $ | 47,359 | ||||||
Tax-exempt interest income | (27,839 | ) | (26,381 | ) | (27,789 | ) | ||||||
Dividends received deduction | (2,027 | ) | (2,239 | ) | (1,482 | ) | ||||||
State tax expense | 3,872 | 4,944 | 1,918 | |||||||||
Nondeductible expenses | 9,900 | 190 | 317 | |||||||||
Other, net | (1,028 | ) | (2,795 | ) | (1,924 | ) | ||||||
Income tax expense | $ | 69,476 | $ | 19,953 | $ | 18,399 | ||||||
Deferred Income Taxes | ||||||||||||
Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial reporting basis and the respective tax basis of the Company’s assets and liabilities, and expected benefits of utilizing net operating loss, capital loss, and tax-credit carryforwards. The ultimate realization of deferred tax assets is dependent upon generating sufficient taxable income of the appropriate character within the carryback and carryforward periods available under the tax law. Management considers the reversal of deferred tax liabilities, projected future taxable income of an appropriate nature, and tax-planing strategies in making this assessment. The Company believes that through the use of prudent tax planning strategies and the generation of capital gains, sufficient income will be realized in order to maximize the full benefits of its deferred tax assets. Significant components of the Company’s net deferred tax assets and liabilities are as follows: | ||||||||||||
December 31, | ||||||||||||
2014 | 2013 | |||||||||||
(Amounts in thousands) | ||||||||||||
Deferred tax assets: | ||||||||||||
20% of net unearned premium | $ | 71,907 | $ | 68,586 | ||||||||
Discounting of loss reserves and salvage and subrogation recoverable for tax purposes | 11,100 | 12,810 | ||||||||||
Write-down of impaired investments | 942 | 1,714 | ||||||||||
Tax credit carryforward | 31,198 | 40,309 | ||||||||||
Expense accruals | 13,395 | 12,497 | ||||||||||
Other deferred tax assets | 7,448 | 5,653 | ||||||||||
Total gross deferred tax assets | 135,990 | 141,569 | ||||||||||
Deferred tax liabilities: | ||||||||||||
Deferred acquisition costs | (69,021 | ) | (68,063 | ) | ||||||||
Tax liability on net unrealized gain on securities carried at fair value | (47,333 | ) | (33,964 | ) | ||||||||
Tax depreciation in excess of book depreciation | (9,414 | ) | (9,667 | ) | ||||||||
Undistributed earnings of insurance subsidiaries | (4,486 | ) | (4,024 | ) | ||||||||
Tax amortization in excess of book amortization | (1,982 | ) | (1,447 | ) | ||||||||
Other deferred tax liabilities | (9,087 | ) | (9,184 | ) | ||||||||
Total gross deferred tax liabilities | (141,323 | ) | (126,349 | ) | ||||||||
Net deferred tax (liabilities) assets | $ | (5,333 | ) | $ | 15,220 | |||||||
The Company had an AMT credit carryforward balance of $31.2 million and $39.2 million at December 31, 2014 and 2013, respectively, which is not subject to expiration. | ||||||||||||
Uncertainty in Income Taxes | ||||||||||||
The Company recognizes tax benefits related to positions taken, or expected to be taken, on a tax return only if, the positions are “more-likely-than-not” sustainable. Once this threshold has been met, the Company’s measurement of its expected tax benefits is recognized in its financial statements. | ||||||||||||
There was a $1.8 million increase to the total amount of unrecognized tax benefits related to tax uncertainties during 2014. The increase was the result of tax positions taken regarding state tax apportionment issues based on management’s best judgment given the facts, circumstances and information available at the reporting date. The Company does not expect any changes in such unrecognized tax benefits to have a significant impact on its consolidated financial statements within the next 12 months. | ||||||||||||
The Company and its subsidiaries file income tax returns with the Internal Revenue Service and the taxing authorities of various states. Tax years that remain subject to examination by major taxing jurisdictions are 2011 through 2013 for federal taxes and 2003 through 2013 for California state taxes. The Company is currently under examination by the California Franchise Tax Board (“FTB”) for tax years 2003 through 2010. The FTB issued Notices of Proposed Assessments to the Company for tax years 2003 through 2010. The Company protested the proposed adjustments for tax years 2003 through 2006, which were affirmed following an administrative protest process with the FTB examination. The Company is considering its options for resolving the case. Management believes that the resolution of these examinations and assessments will not have a material impact on the consolidated financial statements. | ||||||||||||
A reconciliation of the beginning and ending balances of unrecognized tax benefits is as follows: | ||||||||||||
2014 | 2013 | |||||||||||
(Amounts in thousands) | ||||||||||||
Balance at January 1 | $ | 10,784 | $ | 5,926 | ||||||||
Additions based on tax positions related to: | ||||||||||||
Current year | 2,277 | 1,225 | ||||||||||
Prior years | (258 | ) | 3,633 | |||||||||
Additions (reductions) as a result of lapse of the applicable statute of limitations | (191 | ) | 0 | |||||||||
Balance at December 31 | $ | 12,612 | $ | 10,784 | ||||||||
As presented above, the balances of unrecognized tax benefits were $12.6 million and $10.8 million at December 31, 2014 and 2013, respectively. Of these totals, $11.1 million and $8.4 million represent unrecognized tax benefits, net of federal tax benefit and accrued interest expense which, if recognized, would impact the Company’s effective tax rate. | ||||||||||||
Management does not expect the Company's total amount of unrecognized tax benefits to materially increase within the next twelve months. | ||||||||||||
The Company recognizes interest and penalties related to unrecognized tax benefits as a part of income taxes. During the years ended December 31, 2014, 2013, and 2012, the Company recognized net interest and penalty expense, excluding refunds, of $739,000, $1,119,000, and $111,000, respectively. The Company carried an accrued interest and penalty balance of $2,803,000 and $2,065,000 at December 31, 2014 and 2013, respectively. |
Losses_And_Loss_Adjustment_Exp
Losses And Loss Adjustment Expenses | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Insurance Loss Reserves [Abstract] | ||||||||||||
Losses and Loss Adjustment Expenses | Losses and Loss Adjustment Expenses | |||||||||||
Activity in the reserves for losses and loss adjustment expenses is summarized as follows: | ||||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(Amounts in thousands) | ||||||||||||
Gross reserves at January 1 | $ | 1,038,984 | $ | 1,036,123 | $ | 985,279 | ||||||
Less reinsurance recoverable | (13,927 | ) | (12,155 | ) | (7,921 | ) | ||||||
Net reserves at January 1 | 1,025,057 | 1,023,968 | 977,358 | |||||||||
Incurred losses and loss adjustment expenses related to: | ||||||||||||
Current year | 1,989,315 | 1,959,730 | 1,919,116 | |||||||||
Prior years | (3,193 | ) | 2,960 | 42,332 | ||||||||
Total incurred losses and loss adjustment expenses | 1,986,122 | 1,962,690 | 1,961,448 | |||||||||
Loss and loss adjustment expense payments related to: | ||||||||||||
Current year | 1,347,967 | 1,354,074 | 1,314,748 | |||||||||
Prior years | 585,899 | 607,527 | 600,090 | |||||||||
Total payments | 1,933,866 | 1,961,601 | 1,914,838 | |||||||||
Net reserves at year-end | 1,077,313 | 1,025,057 | 1,023,968 | |||||||||
Reinsurance recoverable | 14,484 | 13,927 | 12,155 | |||||||||
Gross reserves at year-end | $ | 1,091,797 | $ | 1,038,984 | $ | 1,036,123 | ||||||
The decrease in the provision for insured events of prior years in 2014 of approximately $3 million primarily resulted from lower than expected loss severity on California personal auto lines of business partially offset by adverse development in other states. | ||||||||||||
The increase in the provision for insured events of prior years in 2013 of approximately $3 million primarily resulted from Florida claims that were re-opened from prior years due to a state supreme court ruling that was adverse to the insurance industry. | ||||||||||||
The increase in the provision for insured events of prior years in 2012 of approximately $42 million primarily resulted from the re-estimate of accident years 2010 and 2011 California BI losses which have experienced higher average severities and more late reported claims than were originally estimated at December 31, 2011. Additionally, the Company experienced unfavorable development on the run-off of California commercial taxi business and Florida homeowners business. 2012 accident year losses were also impacted by higher loss severity and frequency on the California private passenger automobile line of business. | ||||||||||||
The Company experienced estimated pre-tax losses and loss adjustment expenses from severe weather events of $11 million, $17 million, and $39 million in 2014, 2013, and 2012, respectively. The losses in 2014 were primarily related to winter freeze events on the East Coast and the severe rainstorms in California. The losses in 2013 were primarily due to tornadoes in Oklahoma and severe storms in the Midwest and the Southeast regions during the second quarter. The losses in 2012 were primarily due to Hurricane Sandy and wind and hail storms in the Midwest region. |
Dividends
Dividends | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Dividends [Abstract] | ||||||||||||
Dividends | Dividends | |||||||||||
The following table presents shareholder dividends paid in total and per share: | ||||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(Amounts in thousands, except per share data) | ||||||||||||
Total paid | $ | 135,496 | $ | 134,776 | $ | 134,105 | ||||||
Per share | $ | 2.4625 | $ | 2.4525 | $ | 2.4425 | ||||||
The Insurance Companies are subject to the financial capacity guidelines established by their domiciliary states. The payment of dividends from statutory unassigned surplus of the Insurance Companies is restricted, subject to certain statutory limitations. For 2015, the insurance subsidiaries of the Company are permitted to pay approximately $177 million in dividends to Mercury General without the prior approval of the DOI of domiciliary states. The above statutory regulations may have the effect of indirectly limiting the ability of the Company to pay shareholder dividends. During 2014, 2013, and 2012, the Insurance Companies paid the Company ordinary dividends of $225 million, $120 million, and $145 million, respectively. | ||||||||||||
On February 6, 2015, the Board of Directors declared a $0.6175 quarterly dividend payable on March 31, 2015 to shareholders of record on March 17, 2015. |
Statutory_Balances_and_Account
Statutory Balances and Accounting Practices | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Statutory Balances And Accounting Practices [Abstract] | ||||||||||||
Statutory Balances and Accounting Practices | Statutory Balances and Accounting Practices | |||||||||||
The Insurance Companies prepare their statutory-basis financial statements in conformity with accounting practices prescribed or permitted by the insurance departments of their domiciliary states. Prescribed statutory accounting practices primarily include those published as statements of statutory accounting principles by the National Association of Insurance Commissioners (the “NAIC”), as well as state laws, regulations, and general administrative rules. Permitted statutory accounting practices encompass all accounting practices not so prescribed. As of December 31, 2014, there were no material permitted statutory accounting practices utilized by the Insurance Companies. | ||||||||||||
The following table presents the statutory net income and capital and surplus of the Insurance Companies, as reported to regulatory authorities: | ||||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(Amounts in thousands) | ||||||||||||
Statutory net income(1) | $ | 155,654 | $ | 235,251 | $ | 63,365 | ||||||
Statutory capital and surplus | $ | 1,438,281 | $ | 1,528,682 | $ | 1,440,973 | ||||||
__________ | ||||||||||||
-1 | Statutory net income excludes changes in the fair value of the investment portfolio as a result of the application of the fair value option under GAAP, and reflects the impacts of other differences from GAAP. | |||||||||||
The Insurance Companies must comply with minimum capital requirements under applicable state laws and regulations. The RBC formula is used by insurance regulators to monitor capital and surplus levels. It was designed to capture the widely varying elements of risks undertaken by writers of different lines of insurance having differing risk characteristics, as well as writers of similar lines where differences in risk may be related to corporate structure, investment policies, reinsurance arrangements, and a number of other factors. The Company periodically monitors the RBC level of each of the Insurance Companies. As of December 31, 2014, 2013, and 2012 each of the Insurance Companies exceeded the minimum required RBC levels, as determined by the NAIC and adopted by the state insurance regulators. Except for CAIC, at 386%, and 520% at December 31, 2014 and 2013, respectively, none of the Insurance Companies’ RBC ratio was less than 800% of the authorized control level RBC as of December 31, 2014, 2013 and 2012. Generally, an RBC ratio of 200% or less would require some form of regulatory or company action. |
Profit_Sharing_Plan
Profit Sharing Plan | 12 Months Ended |
Dec. 31, 2014 | |
Deferred Compensation Arrangements [Abstract] | |
Profit Sharing Plan | Profit Sharing Plan and Annual Cash Bonuses |
The Company’s employees are eligible to become members of the Profit Sharing Plan (the “Plan”). The Company, at the option of the Board of Directors, may make annual contributions to the Plan, and the contributions are not to exceed the greater of the Company’s net income for the plan year or its retained earnings at that date. In addition, the annual contributions may not exceed an amount equal to 15% of the compensation paid or accrued during the year to all participants under the Plan. No contributions were made in the past three years. | |
The Plan includes an option for employees to make salary deferrals under Section 401(k) of the Internal Revenue Code. The matching contributions, at a rate set by the Board of Directors, totaled $8.0 million, $8.1 million, and $7.2 million for 2014, 2013, and 2012, respectively. | |
The Plan also includes an employee stock ownership plan that covers substantially all employees. The Board of Directors authorizes the Plan to purchase the Company’s common stock in the open market for allocation to the Plan participants. No purchases were made during the past three years. | |
The Company also provides annual cash bonuses to eligible employees based on performance criteria for each recipient and for the Company as a whole. The Company performance goals were based on the Company's premium growth and combined ratio. The Company paid annual cash bonuses of $19.2 million, $0 million, and $10.0 million in 2014, 2013, and 2012, respectively. |
ShareBased_Compensation
Share-Based Compensation | 12 Months Ended | |||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||
Share-based Compensation [Abstract] | ||||||||||||||||||
Share-Based Compensation | Share-Based Compensation | |||||||||||||||||
In May 2005, the Company adopted the 2005 Incentive Award Plan (the “2005 Plan”), which succeeded a prior plan. A maximum of 4,920,750 shares of common stock under the 2005 Plan are authorized for issuance upon exercise of options, stock appreciation rights and other awards, or upon vesting of restricted or deferred stock awards. As of December 31, 2014, only options and restricted stock awards have been granted under these plans. Beginning January 1, 2008, options granted, for which the Company has recognized share-based compensation expense become exercisable at a rate of 25% per year beginning one year from the date granted, are granted at the market price on the date of grant, and expire after 10 years. Prior to January 1, 2008, shares became exercisable at a rate of 20% per year. | ||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||
Cash received from option exercises | $ | 6,247 | $ | 1,446 | $ | 2,492 | ||||||||||||
Compensation cost | 4,112 | 974 | (370 | ) | ||||||||||||||
Excess tax benefit | 148 | 202 | 86 | |||||||||||||||
No stock options were awarded in 2014 and 2012. In 2013, the fair value of stock option awards was estimated on the date of grant using a closed-form option valuation model (Black-Scholes) based on the following table, which provides the weighted-average values of assumptions used in the calculation of grand-date fair values during the years ended December 31, 2013. | ||||||||||||||||||
2013 | ||||||||||||||||||
Weighted-average grant-date fair value | $7.11 | |||||||||||||||||
Expected volatility | 33.16% - 33.18% | |||||||||||||||||
Weighted-average expected volatility | 33.17% | |||||||||||||||||
Risk-free interest rate | 0.88% - 1.60% | |||||||||||||||||
Expected dividend yield | 5.40% - 5.76% | |||||||||||||||||
Expected term in months | 72 | |||||||||||||||||
Expected volatilities are based on historical volatility of the Company’s stock over the term of the options. The Company estimated the expected term of options, which represents the period of time that options granted are expected to be outstanding, by using historical exercise patterns and post-vesting termination behavior. The risk free interest rate is determined based on U.S. Treasury yields with equivalent remaining terms in effect at the time of the grant. | ||||||||||||||||||
A summary of the stock option activity under the Company’s plans as of December 31, 2014 and changes during the year then ended is presented below: | ||||||||||||||||||
Shares | Weighted- | Weighted- | Aggregate | |||||||||||||||
Average | Average | Intrinsic Value | ||||||||||||||||
Exercise Price | Remaining | (in 000’s) | ||||||||||||||||
Contractual Term | ||||||||||||||||||
(Years) | ||||||||||||||||||
Outstanding at January 1, 2014 | 433,750 | $ | 49.11 | |||||||||||||||
Granted | 0 | |||||||||||||||||
Exercised | -155,050 | $ | 46.34 | |||||||||||||||
Canceled or expired | -30,700 | $ | 57.1 | |||||||||||||||
Outstanding at December 31, 2014 | 248,000 | $ | 49.85 | 3.7 | $ | 1,774 | ||||||||||||
Exercisable at December 31, 2014 | 188,000 | $ | 51.86 | 2.2 | $ | 985 | ||||||||||||
The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value (the difference between the Company’s closing stock price and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all options been exercised on December 31, 2014. The aggregate intrinsic value of stock options exercised was $1,160,000, $862,000, and $392,000 during 2014, 2013, and 2012, respectively. The total fair value of options vested was $142,000, $146,000, and $407,000 during 2014, 2013, and 2012, respectively. | ||||||||||||||||||
The following table presents information regarding stock options outstanding at December 31, 2014: | ||||||||||||||||||
Options Outstanding | Options Exercisable | |||||||||||||||||
Range of Exercise Prices | Number of | Weighted-Avg. | Weighted- | Number of | Weighted- | |||||||||||||
Options | Remaining | Avg. Exercise | Options | Avg. Exercise | ||||||||||||||
Contractual Life | Price | Price | ||||||||||||||||
(Years) | ||||||||||||||||||
$33.61-47.61 | 105,500 | 6.5 | $ | 43.67 | 45,500 | $ | 43.86 | |||||||||||
$50.01-52.13 | 63,500 | 2.2 | $ | 51.03 | 63,500 | $ | 51.03 | |||||||||||
$54.93-58.83 | 79,000 | 1.3 | $ | 57.14 | 79,000 | $ | 57.14 | |||||||||||
As of December 31, 2014, $344,000 of total unrecognized compensation cost related to non-vested stock options is expected to be recognized over a weighted-average period of 2.4 years. | ||||||||||||||||||
Under the 2005 Plan, the Compensation Committee of the Company’s Board of Directors granted performance vesting restricted stock units to the Company’s senior management and key employees. | ||||||||||||||||||
The following table presents the grants summary: | ||||||||||||||||||
Grant Year | ||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||
Three-year performance period ending December 31, | 2016 | 2015 | 2014 | |||||||||||||||
Vesting shares, target (net of forfeited) | 86,500 | 80,500 | 80,500 | |||||||||||||||
Vesting shares, maximum (net of forfeited) | 162,188 | 181,125 | 181,125 | |||||||||||||||
The restricted stock unit activity as of December 31, 2014, 2013, and 2012 and changes during the years then ended is as follows: | ||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||
Shares | Weighted- | Shares | Weighted- | Shares | Weighted- | |||||||||||||
Average Fair | Average Fair | Average Fair | ||||||||||||||||
Value per Share | Value per Share | Value per Share | ||||||||||||||||
Outstanding at January 1 | 170,500 | $ | 39.64 | 169,000 | $ | 42.22 | 135,000 | $ | 40.7 | |||||||||
Granted | 93,500 | $ | 45.17 | 84,500 | $ | 36.82 | 92,000 | $ | 44.01 | |||||||||
Vested | 0 | 0 | 0 | |||||||||||||||
Forfeited/Canceled | -16,500 | $ | 43.99 | -3,000 | $ | 36.82 | -3,000 | $ | 44.01 | |||||||||
Expired | -80,500 | $ | 44.01 | -80,000 | $ | 40.22 | -55,000 | $ | 41.4 | |||||||||
Outstanding at December 31 | 167,000 | $ | 41.15 | 170,500 | $ | 39.64 | 169,000 | $ | 42.22 | |||||||||
The restricted stock units vest at the end of a three-year performance period beginning with the year of the grant, and then only if, and to the extent that, the Company’s performance during the performance period achieves the threshold established by the Compensation Committee of the Company’s Board of Directors. For 2012 grants, vesting was based on the Company’s cumulative underwriting income and net premium written growth. For 2013 and 2014 grants, vesting will be based on the Company’s cumulative underwriting income, annual underwriting income, and net earned premium growth. As of December 31, 2014, 7,000, 4,000, and 11,500 target restricted stock units granted in 2014, 2013, and 2012, respectively, have been forfeited because the recipients are no longer employed by the Company. | ||||||||||||||||||
The fair value of each restricted share grant was determined based on the market price on the grant date. Compensation cost is recognized based on management’s best estimate that performance goals will be achieved. If such goals are not met, no compensation cost is recognized and any recognized compensation cost would be reversed. For the 2012 grants, the achievement of the performance condition set by the Compensation Committee was no longer considered probable, and previously recognized compensation costs were reversed. |
Earnings_Per_Share
Earnings Per Share | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||
Earnings Per Share Reconciliation [Abstract] | |||||||||||||||||||||||||||||||||
Earnings Per Share | Earnings Per Share | ||||||||||||||||||||||||||||||||
A reconciliation of the numerators and denominators of the basic and diluted earnings per share calculation for income from operations is presented below: | |||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||||||
Income | Weighted | Per-Share | Income | Weighted | Per-Share | Income | Weighted | Per-Share | |||||||||||||||||||||||||
(Numerator) | Shares | Amount | (Numerator) | Shares | Amount | (Numerator) | Shares | Amount | |||||||||||||||||||||||||
(Denominator) | (Denominator) | (Denominator) | |||||||||||||||||||||||||||||||
(Amounts and numbers in thousands, except per-share data) | |||||||||||||||||||||||||||||||||
Basic EPS | |||||||||||||||||||||||||||||||||
Income available to common stockholders | $ | 177,949 | 55,008 | $ | 3.23 | $ | 112,143 | 54,947 | $ | 2.04 | $ | 116,911 | 54,899 | $ | 2.13 | ||||||||||||||||||
Effect of dilutive securities: | |||||||||||||||||||||||||||||||||
Options | 0 | 12 | 0 | 17 | 0 | 23 | |||||||||||||||||||||||||||
Diluted EPS | |||||||||||||||||||||||||||||||||
Income available to common stockholders after assumed conversions | $ | 177,949 | 55,020 | $ | 3.23 | $ | 112,143 | 54,964 | $ | 2.04 | $ | 116,911 | 54,922 | $ | 2.13 | ||||||||||||||||||
Incremental shares of 273,000, 421,000, and 415,000 for 2014, 2013, and 2012, respectively, were excluded from the computation of the diluted earnings per common shares due to their anti-dilutive effect. Potentially dilutive securities representing approximately 21,000, 63,000, and 80,000 shares of common stock for 2014, 2013, and 2012, respectively, were also excluded from the computation of diluted earnings per common share because their effect would have been anti-dilutive. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Commitments and Contingencies Disclosure [Abstract] | ||||
Commitments and Contingencies | Commitments and Contingencies | |||
Operating Leases | ||||
The Company is obligated under various non-cancellable lease agreements providing for office space, automobiles, and office equipment that expire at various dates through the year 2020. For leases that contain predetermined escalations of the minimum rentals, the Company recognizes the related rent expense on a straight-line basis and records the difference between the recognized rental expense and amounts payable under the leases as deferred rent in other liabilities. This liability amounted to $3.0 million and $3.4 million at December 31, 2014 and 2013, respectively. Total rent expense under these lease agreements was $14.6 million, $19.3 million, and $17.7 million for 2014, 2013, and 2012, respectively. | ||||
The following table presents future minimum commitments for operating leases as of December 31, 2014: | ||||
Year Ending December 31, | Operating Leases | |||
(Amounts in thousands) | ||||
2015 | $ | 14,179 | ||
2016 | 12,752 | |||
2017 | 8,870 | |||
2018 | 3,701 | |||
2019 | 514 | |||
Thereafter | 26 | |||
California Earthquake Authority (“CEA”) | ||||
The CEA is a quasi-governmental organization that was established to provide a market for earthquake coverage to California homeowners. The Company places all new and renewal earthquake coverage offered with its homeowners policies directly with the CEA. The Company receives a small fee for placing business with the CEA, which is recorded as other income in the consolidated statements of operations. Upon the occurrence of a major seismic event, the CEA has the ability to assess participating companies for losses. These assessments are made after CEA capital has been expended and are based upon each company’s participation percentage multiplied by the amount of the total assessment. Based upon the most recent information provided by the CEA, the Company’s maximum total exposure to CEA assessments at April 1, 2014, the most recent date at which information was available, was approximately $62.5 million. There was no assessment made in 2014. | ||||
Regulatory Matters | ||||
In April 2010, the California DOI issued a Notice of Non-Compliance (“2010 NNC”) to MIC, MCC, and CAIC based on a Report of Examination of the Rating and Underwriting Practices of these companies issued by the California DOI in February 2010. The 2010 NNC includes allegations of 35 instances of noncompliance with applicable California insurance law and seeks to require that each of MIC, MCC, and CAIC change its rating and underwriting practices to rectify the alleged noncompliance and may also seek monetary penalties. In April 2010, the Company submitted a Statement of Compliance and Notice of Defense to the 2010 NNC, in which it denied the allegations contained in the 2010 NNC and provided specific defenses to each allegation. The Company also requested a hearing in the event that the Statement of Compliance and Notice of Defense does not establish to the satisfaction of the California DOI that the alleged noncompliance does not exist, and the matters described in the 2010 NNC are not otherwise able to be resolved informally with the California DOI. However, no assurance can be given that efforts to resolve the 2010 NNC informally will be successful. | ||||
In March 2006, the California DOI issued an Amended Notice of Non-Compliance to a Notice of Non-Compliance originally issued in February 2004 (as amended, “2004 NNC”) alleging that the Company charged rates in violation of the California Insurance Code, willfully permitted its agents to charge broker fees in violation of California law, and willfully misrepresented the actual price insurance consumers could expect to pay for insurance by the amount of a fee charged by the consumer’s insurance broker. The California DOI seeks to impose a fine for each policy in which the Company allegedly permitted an agent to charge a broker fee and a penalty for each policy on which the Company allegedly used a misleading advertisement and to suspend certificates of authority for a period of one year. In January 2012, an Administrative Law Judge (“ALJ”) bifurcated the 2004 NNC between (a) the California DOI’s order to show cause, in which the California DOI asserts the false advertising allegations and accusation, and (b) the California DOI’s notice of noncompliance, in which the California DOI asserts the unlawful rate allegations. Following an evidentiary hearing on the noncompliance portion of the 2004 NNC in April 2013, post-hearing briefs and an unsuccessful mediation, the ALJ closed the evidentiary record on April 30, 2014. On December 8, 2014 the ALJ submitted a proposed decision to the California Insurance Commissioner and recommended that it be adopted as the decision of the California Insurance Commissioner. The decision states that from the period July 1, 1996 through 2006, Mercury’s "brokers" were actually operating as "de facto agents" and that the charging of "broker fees" by those producers constituted the charging of "premium" in excess of the Company’s approved rates and assesses a civil penalty in the amount of $27,593,550 against the Company. The California Insurance Commissioner adopted the ALJ's proposed decision on January 7, 2015, and the Company received notice of the California Department of Insurance decision on January 10, 2015. | ||||
The Company denies the allegations and/or findings in the 2004 and 2010 NNC matters, and believes that no monetary penalties are warranted, and the Company intends to vigorously defend itself against the allegations including the $27,593,550 assessed fine, unless a reasonable settlement can be reached. Although the Company intends to continue to defend the allegations in the 2004 NNC, it accrued a liability, and incurred a corresponding expense, for the full proposed penalty amount in the 2004 NNC matter in the three month and twelve month periods ended December 31, 2014. Based upon its understanding of the facts and the California Insurance Code, the Company does not expect that the ultimate resolution of the 2004 and 2010 NNC matters will be material to the Company’s financial position. The Company has also accrued a liability for the estimated cost to continue to defend itself in the notice of non-compliance matters. | ||||
Litigation | ||||
The Company is, from time to time, named as a defendant in various lawsuits or regulatory actions incidental to its insurance business. The majority of lawsuits brought against the Company relate to insurance claims that arise in the normal course of business and are reserved for through the reserving process. For a discussion of the Company’s reserving methods, see Note 1. | ||||
The Company also establishes reserves for non-insurance claims related lawsuits, regulatory actions, and other contingencies when the Company believes a loss is probable and is able to estimate its potential exposure. For loss contingencies believed to be reasonably possible, the Company also discloses the nature of the loss contingency and an estimate of the possible loss, range of loss, or a statement that such an estimate cannot be made. While actual losses may differ from the amounts recorded and the ultimate outcome of the Company’s pending actions is generally not yet determinable, the Company does not believe that the ultimate resolution of currently pending legal or regulatory proceedings, either individually or in the aggregate, will have a material adverse effect on its financial condition, results of operations, or cash flows. | ||||
In all cases, the Company vigorously defends itself unless a reasonable settlement appears appropriate. | ||||
The Company is also involved in proceedings relating to assessments and rulings made by the FTB. See Note 9. |
Risks_and_Uncertainties
Risks and Uncertainties | 12 Months Ended |
Dec. 31, 2014 | |
Risks and Uncertainties [Abstract] | |
Risks and Uncertainties | Risks and Uncertainties |
Many businesses are still experiencing the effects of uncertain conditions in the global economy and capital markets, reduced consumer spending and confidence, and continued volatility, which could adversely impact the Company’s financial condition, results of operations, and liquidity. Further, the volatility and disruptions in global capital markets could adversely affect the Company’s investment portfolio. Although the disruption in the global financial markets has moderated, not all global financial markets are functioning normally. The Company is unable to predict the impact of current and future global economic conditions on the United States, and California, where the majority of the Company’s business is produced. | |
The Company applies the fair value option to its investment portfolio. Rapidly changing and unprecedented credit and equity market conditions could materially impact the valuation of securities as reported within the Company’s financial statements, and the period-to-period changes in value could vary significantly. Decreases in market value may have a material adverse effect on the Company’s financial condition or results of operations. |
Quarterly_Financial_Informatio
Quarterly Financial Information | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Quarterly Financial Data [Abstract] | |||||||||||||||||
Quarterly Financial Information | Quarterly Financial Information (Unaudited) | ||||||||||||||||
Summarized quarterly financial data for 2014 and 2013 are as follows: | |||||||||||||||||
Quarter Ended | |||||||||||||||||
31-Mar | 30-Jun | September 30 | December 31 | ||||||||||||||
(Amounts in thousands, except per share data) | |||||||||||||||||
2014 | |||||||||||||||||
Net premiums earned | $ | 683,701 | $ | 697,889 | $ | 705,237 | $ | 709,368 | |||||||||
Change in fair value of investments pursuant to the fair value option | $ | 45,699 | $ | 41,412 | $ | (20,528 | ) | $ | (22,824 | ) | |||||||
Income (loss) before income taxes | $ | 102,030 | $ | 136,436 | $ | 37,120 | $ | (28,161 | ) | ||||||||
Net income (loss) | $ | 72,649 | $ | 94,960 | $ | 31,296 | $ | (20,956 | ) | ||||||||
Basic earnings per share (2) | $ | 1.32 | $ | 1.73 | $ | 0.57 | $ | (0.38 | ) | ||||||||
Diluted earnings per share (2) | $ | 1.32 | $ | 1.73 | $ | 0.57 | $ | (0.38 | ) | (1) | |||||||
Dividends paid per share | $ | 0.615 | $ | 0.615 | $ | 0.6175 | $ | 0.6175 | |||||||||
2013 | |||||||||||||||||
Net premiums earned | $ | 662,595 | $ | 675,787 | $ | 678,913 | $ | 680,892 | |||||||||
Change in fair value of investments pursuant to the fair value option | $ | 43,467 | $ | (78,726 | ) | $ | 21,815 | $ | (30,593 | ) | |||||||
Income (loss) before income taxes | $ | 90,994 | $ | (24,959 | ) | $ | 54,793 | $ | 11,268 | ||||||||
Net income (loss) | $ | 66,461 | $ | (9,264 | ) | $ | 39,570 | $ | 15,376 | ||||||||
Basic earnings per share | $ | 1.21 | $ | (0.17 | ) | $ | 0.72 | $ | 0.28 | ||||||||
Diluted earnings per share | $ | 1.21 | $ | (0.17 | ) | (1) | $ | 0.72 | $ | 0.28 | |||||||
Dividends paid per share | $ | 0.6125 | $ | 0.6125 | $ | 0.6125 | $ | 0.615 | |||||||||
__________ | |||||||||||||||||
-1 | The dilutive impact of incremental shares is excluded from net loss position in accordance with GAAP. | ||||||||||||||||
-2 | The basic and diluted earnings per share do not sum due to rounding. | ||||||||||||||||
Net income during 2014 was primarily affected by the $27.6 million penalty assessed by California DOI, higher net premiums earned and increases in the fair value of the Company’s investment portfolio offset by catastrophe related losses. See Note 16 of Notes to Consolidated Financial Statements for "2004 NNC" discussion. The primary causes of the net loss during the fourth quarter of 2014 were the $27.6 million penalty described above, the declines in the fair value of the Company’s equity securities due to the overall decline in the equity market, and the severe rainstorms in California. | |||||||||||||||||
Net income during 2013 was primarily affected by higher net premiums earned offset by catastrophe related losses, and declines in the fair value of the Company’s investment portfolio due to the overall decline in the municipal markets. Net income during 2013 was also affected by the consolidation of claims and underwriting operations located outside of California into hub locations, which resulted in approximately $10 million of pre-tax office closure costs and severance related expense during the first quarter of 2013. The primary causes of the net loss during the second quarter of 2013 were increased losses resulting from catastrophe losses due to tornadoes in Oklahoma and severe storms in the Midwest and the Southeast regions, and declines in the fair value of the Company’s municipal and equity securities due to the overall decline in the municipal and equity markets. |
Subsequent_Event
Subsequent Event | 12 Months Ended |
Dec. 31, 2014 | |
Business Combinations [Abstract] | |
Subsequent Event | Subsequent Event |
Pursuant to an October 22, 2014 Stock Purchase Agreement, the Company purchased all the issued and outstanding shares of Workmen’s Auto Insurance Company (“WAIC”), a California domiciled property and casualty insurance company, on January 2, 2015. The Company paid $8 million in cash for the shares of WAIC, of which, $2 million has been withheld in escrow for two years as security for any loss development on claims incurred on or prior to June 30, 2014. In accordance with requirements to obtain regulatory approval, the Company made a $15 million capital contribution to WAIC on January 12, 2015. | |
WAIC is a Los Angeles-based non-standard, personal automobile lines insurance company that operates predominantly in California. The Company intends to use the WAIC non-standard automobile product to complement the Company’s preferred product offering. | |
The determination of purchase price and valuation of financial assets acquired and financial liabilities assumed are expected to be completed as soon as practicable. The final purchase price allocation is still under review, specifically related to the determination of the fair value of loss reserves, assets, liabilities, and identifiable intangible assets. The Company expects this review to be completed during the first quarter of 2015. |
Summary_Of_Investments_Other_T
Summary Of Investments Other Than Investments In Related Parties | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Summary of Investments, Other than Investments in Related Parties [Abstract] | ||||||||||||
Summary Of Investments Other Than Investments In Related Parties | MERCURY GENERAL CORPORATION AND SUBSIDIARIES | |||||||||||
SUMMARY OF INVESTMENTS | ||||||||||||
OTHER THAN INVESTMENTS IN RELATED PARTIES | ||||||||||||
31-Dec-14 | ||||||||||||
Type of Investment | Cost | Fair Value | Amounts in the | |||||||||
Balance Sheet | ||||||||||||
(Amounts in thousands) | ||||||||||||
Fixed maturity securities: | ||||||||||||
U.S. government bonds and agencies | $ | 16,028 | $ | 16,108 | $ | 16,108 | ||||||
Municipal securities | 2,160,710 | 2,275,455 | 2,275,455 | |||||||||
Mortgage-backed securities | 45,519 | 47,691 | 47,691 | |||||||||
Corporate securities | 258,940 | 256,930 | 256,930 | |||||||||
Collateralized loan obligations | 22,297 | 22,216 | 22,216 | |||||||||
Total fixed maturity securities | 2,503,494 | 2,618,400 | 2,618,400 | |||||||||
Equity securities: | ||||||||||||
Common stock: | ||||||||||||
Public utilities | 96,482 | 105,485 | 105,485 | |||||||||
Banks, trust and insurance companies | 7,701 | 9,757 | 9,757 | |||||||||
Energy and other | 245,656 | 257,356 | 257,356 | |||||||||
Non-redeemable preferred stock | 28,012 | 28,563 | 28,563 | |||||||||
Partnership interest in a private credit fund | 10,000 | 11,719 | 11,719 | |||||||||
Total equity securities | 387,851 | 412,880 | 412,880 | |||||||||
Short-term investments | 373,180 | 372,542 | 372,542 | |||||||||
Total investments | $ | 3,264,525 | $ | 3,403,822 | $ | 3,403,822 | ||||||
SCHEDULE I, Continued | ||||||||||||
MERCURY GENERAL CORPORATION AND SUBSIDIARIES | ||||||||||||
SUMMARY OF INVESTMENTS | ||||||||||||
OTHER THAN INVESTMENTS IN RELATED PARTIES | ||||||||||||
31-Dec-13 | ||||||||||||
Type of Investment | Cost | Fair Value | Amounts in the | |||||||||
Balance Sheet | ||||||||||||
(Amounts in thousands) | ||||||||||||
Fixed maturity securities: | ||||||||||||
U.S. government bonds and agencies | $ | 15,994 | $ | 16,096 | $ | 16,096 | ||||||
Municipal securities | 2,201,047 | 2,235,323 | 2,235,323 | |||||||||
Mortgage-backed securities | 37,848 | 40,247 | 40,247 | |||||||||
Corporate securities | 264,172 | 264,685 | 264,685 | |||||||||
Collateralized debt obligations | 3,981 | 4,302 | 4,302 | |||||||||
Total fixed maturity securities | 2,523,042 | 2,560,653 | 2,560,653 | |||||||||
Equity securities: | ||||||||||||
Common stock: | ||||||||||||
Public utilities | 81,128 | 85,287 | 85,287 | |||||||||
Banks, trust and insurance companies | 1,610 | 2,927 | 2,927 | |||||||||
Energy and other | 101,455 | 151,554 | 151,554 | |||||||||
Non-redeemable preferred stock | 29,740 | 29,567 | 29,567 | |||||||||
Partnership interest in a private credit fund | 10,000 | 12,548 | 12,548 | |||||||||
Total equity securities | 223,933 | 281,883 | 281,883 | |||||||||
Short-term investments | 315,886 | 315,776 | 315,776 | |||||||||
Total investments | $ | 3,062,861 | $ | 3,158,312 | $ | 3,158,312 | ||||||
Condensed_Financial_Informatio
Condensed Financial Information of Registrant | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | ||||||||||||
Condensed Financial Information of Registrant | MERCURY GENERAL CORPORATION | |||||||||||
CONDENSED FINANCIAL INFORMATION OF REGISTRANT | ||||||||||||
BALANCE SHEETS | ||||||||||||
December 31, | ||||||||||||
2014 | 2013 | |||||||||||
(Amounts in thousands) | ||||||||||||
ASSETS | ||||||||||||
Investments, at fair value: | ||||||||||||
Equity securities (cost $189,032; $27,449) | $ | 182,300 | $ | 29,737 | ||||||||
Short-term investments (cost $9,744; $11,089) | 9,744 | 11,089 | ||||||||||
Investment in subsidiaries | 1,783,049 | 1,794,164 | ||||||||||
Total investments | 1,975,093 | 1,834,990 | ||||||||||
Cash | 52,326 | 46,332 | ||||||||||
Accrued investment income | 158 | 16 | ||||||||||
Amounts receivable from affiliates | 1,181 | 206 | ||||||||||
Current income taxes | 239 | 0 | ||||||||||
Deferred income taxes | 6,975 | 1,068 | ||||||||||
Income tax receivable from affiliates | 3,482 | 11,573 | ||||||||||
Other assets | 1,095 | 459 | ||||||||||
Total assets | $ | 2,040,549 | $ | 1,894,644 | ||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||
Notes payable | $ | 150,000 | $ | 50,000 | ||||||||
Accounts payable and accrued expenses | 0 | 23 | ||||||||||
Amounts payable to affiliates | 97 | 34 | ||||||||||
Income tax payable to affiliates | 14,728 | 6,730 | ||||||||||
Current income taxes | 0 | 12,672 | ||||||||||
Other liabilities | 278 | 2,699 | ||||||||||
Total liabilities | 165,103 | 72,158 | ||||||||||
Shareholders’ equity: | ||||||||||||
Common stock | 88,705 | 81,591 | ||||||||||
Additional paid-in capital | 3,804 | 411 | ||||||||||
Retained earnings | 1,782,937 | 1,740,484 | ||||||||||
Total shareholders’ equity | 1,875,446 | 1,822,486 | ||||||||||
Total liabilities and shareholders’ equity | $ | 2,040,549 | $ | 1,894,644 | ||||||||
SCHEDULE II, Continued | ||||||||||||
MERCURY GENERAL CORPORATION | ||||||||||||
CONDENSED FINANCIAL INFORMATION OF REGISTRANT | ||||||||||||
STATEMENTS OF OPERATIONS | ||||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(Amounts in thousands) | ||||||||||||
Revenues: | ||||||||||||
Net investment income | $ | 4,478 | $ | 1,293 | $ | 1,114 | ||||||
Net realized investment (losses) gains | (9,428 | ) | 3,416 | 697 | ||||||||
Total revenues | (4,950 | ) | 4,709 | 1,811 | ||||||||
Expenses: | ||||||||||||
Other operating expenses | 5,971 | 2,924 | 1,688 | |||||||||
Interest | 1,746 | 318 | 0 | |||||||||
Total expenses | 7,717 | 3,242 | 1,688 | |||||||||
(Loss) income before income taxes and equity in net income of subsidiaries | (12,667 | ) | 1,467 | 123 | ||||||||
Income tax (benefit) expense | (100 | ) | 3,310 | 1,800 | ||||||||
Loss before equity in net income of subsidiaries | (12,567 | ) | (1,843 | ) | (1,677 | ) | ||||||
Equity in net income of subsidiaries | 190,516 | 113,986 | 118,588 | |||||||||
Net income | $ | 177,949 | $ | 112,143 | $ | 116,911 | ||||||
STATEMENTS OF COMPREHENSIVE INCOME | ||||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(Amounts in thousands) | ||||||||||||
Net income | $ | 177,949 | $ | 112,143 | $ | 116,911 | ||||||
Other comprehensive income, before tax: | ||||||||||||
Gains on hedging instrument | 0 | 0 | 0 | |||||||||
Other comprehensive income, before tax | 0 | 0 | 0 | |||||||||
Income tax expense related to gains on hedging instrument | 0 | 0 | 0 | |||||||||
Other comprehensive income, net of tax: | 0 | 0 | 0 | |||||||||
Comprehensive income | $ | 177,949 | $ | 112,143 | $ | 116,911 | ||||||
SCHEDULE II, Continued | ||||||||||||
MERCURY GENERAL CORPORATION | ||||||||||||
CONDENSED FINANCIAL INFORMATION OF REGISTRANT | ||||||||||||
STATEMENTS OF CASH FLOWS | ||||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(Amounts in thousands) | ||||||||||||
Cash flows from operating activities: | ||||||||||||
Net cash used in operating activities | $ | (3,434 | ) | $ | (843 | ) | $ | (5,590 | ) | |||
Cash flows from investing activities: | ||||||||||||
Capital contribution to controlled entities | (30,125 | ) | (40,125 | ) | (125 | ) | ||||||
Dividends from subsidiaries | 231,756 | 120,000 | 145,000 | |||||||||
Equity securities: | ||||||||||||
Purchases | (254,572 | ) | (25,038 | ) | (14,102 | ) | ||||||
Sales | 90,422 | 25,798 | 7,308 | |||||||||
(Decrease) increase in payable for securities, net | (2,489 | ) | 2,489 | 0 | ||||||||
Net decrease (increase) in short-term investments | 1,346 | 36,085 | (20,413 | ) | ||||||||
Other, net | 2,191 | 895 | 429 | |||||||||
Net cash provided by investing activities | 38,529 | 120,104 | 118,097 | |||||||||
Cash flows from financing activities: | ||||||||||||
Dividends paid to shareholders | (135,496 | ) | (134,776 | ) | (134,105 | ) | ||||||
Excess tax benefit from exercise of stock options | 148 | 202 | 86 | |||||||||
Proceeds from stock options exercised | 6,247 | 1,446 | 2,492 | |||||||||
Proceeds from bank loan | 100,000 | 50,000 | 0 | |||||||||
Net cash used in financing activities | (29,101 | ) | (83,128 | ) | (131,527 | ) | ||||||
Net increase (decrease) in cash | 5,994 | 36,133 | (19,020 | ) | ||||||||
Cash: | ||||||||||||
Beginning of year | 46,332 | 10,199 | 29,219 | |||||||||
End of year | $ | 52,326 | $ | 46,332 | $ | 10,199 | ||||||
SUPPLEMENTAL CASH FLOW DISCLOSURE | ||||||||||||
Interest paid | $ | 1,757 | $ | 318 | $ | 0 | ||||||
Income taxes paid (received) | $ | 2,112 | $ | (827 | ) | $ | 4,667 | |||||
The accompanying condensed financial information should be read in conjunction with the Consolidated Financial Statements and Notes to Consolidated Financial Statements included in this report. | ||||||||||||
Dividends | ||||||||||||
Dividends of $225,000,000, $120,000,000 and $145,000,000 were received by Mercury General from its 100% owned insurance subsidiaries in 2014, 2013, and 2012, respectively, and are recorded as a reduction to investment in subsidiaries. | ||||||||||||
Capitalization of Insurance Subsidiaries | ||||||||||||
Mercury General made capital contributions to its insurance subsidiaries of $125,000 in each of 2014, 2013, and 2012. | ||||||||||||
Notes Payable | ||||||||||||
The borrowings by MCC, a subsidiary, under the $120 million credit facility and $20 million bank loan are secured by approximately $181 million of municipal bonds owned by MCC, at fair value, held as collateral. The total borrowings of $140 million are guaranteed by the Company. | ||||||||||||
On July 2, 2013, Mercury General entered into an unsecured $200 million five-year revolving credit facility. Effective December 3, 2014, the Company expanded the borrowing capacity from $200 million to $250 million. Total borrowings were $150 million as of December 31, 2014. | ||||||||||||
Federal Income Taxes | ||||||||||||
The Company files a consolidated federal income tax return with the following entities: | ||||||||||||
Mercury Casualty Company | Mercury County Mutual Insurance Company | |||||||||||
Mercury Insurance Company | Mercury Insurance Company of Florida | |||||||||||
California Automobile Insurance Company | Mercury Indemnity Company of America | |||||||||||
California General Underwriters Insurance Company, Inc. | Mercury Select Management Company, Inc. | |||||||||||
Mercury Insurance Company of Illinois | Mercury Insurance Services LLC | |||||||||||
Mercury Insurance Company of Georgia | AIS Management LLC | |||||||||||
Mercury Indemnity Company of Georgia | Auto Insurance Specialists LLC | |||||||||||
Mercury National Insurance Company | PoliSeek AIS Insurance Solutions, Inc. | |||||||||||
American Mercury Insurance Company | Animas Funding LLC | |||||||||||
American Mercury Lloyds Insurance Company | Fannette Funding LLC | |||||||||||
The method of allocation between the companies is subject to an agreement approved by the Board of Directors. Allocation is based upon separate return calculations with current credit for net losses incurred by the insurance subsidiaries to the extent it can be used in the current consolidated return. |
Supplemental_Reinsurance_Premi
Supplemental Reinsurance Premiums | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Supplementary Insurance Information [Abstract] | ||||||||||||
Supplemental Reinsurance Premiums | SCHEDULE IV | |||||||||||
MERCURY GENERAL CORPORATION AND SUBSIDIARIES | ||||||||||||
REINSURANCE | ||||||||||||
THREE YEARS ENDED DECEMBER 31, | ||||||||||||
Property and Liability Insurance Earned Premiums | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(Amounts in thousands) | ||||||||||||
Direct amounts | $ | 2,806,889 | $ | 2,704,401 | $ | 2,578,715 | ||||||
Ceded to other companies | (11,185 | ) | (7,059 | ) | (5,066 | ) | ||||||
Assumed | 491 | 845 | 1,271 | |||||||||
Net amounts | $ | 2,796,195 | $ | 2,698,187 | $ | 2,574,920 | ||||||
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policy) | 12 Months Ended | ||
Dec. 31, 2014 | |||
Accounting Policies [Abstract] | |||
Consolidation and Basis of Presentation | The consolidated financial statements include the accounts of Mercury General Corporation and its subsidiaries: | ||
Insurance Companies | |||
Mercury Casualty Company (“MCC”) | Mercury National Insurance Company | ||
Mercury Insurance Company (“MIC”) | American Mercury Insurance Company | ||
California Automobile Insurance Company (“CAIC”) | American Mercury Lloyds Insurance Company(1) | ||
California General Underwriters Insurance Company, Inc. | Mercury County Mutual Insurance Company(2) | ||
Mercury Insurance Company of Illinois | Mercury Insurance Company of Florida | ||
Mercury Insurance Company of Georgia | Mercury Indemnity Company of America | ||
Mercury Indemnity Company of Georgia | |||
Non-Insurance Companies | |||
Mercury Select Management Company, Inc. | AIS Management LLC | ||
Mercury Insurance Services LLC | Auto Insurance Specialists LLC | ||
Animas Funding LLC (“AFL”)(3) | PoliSeek AIS Insurance Solutions, Inc. | ||
Fannette Funding LLC (“FFL”)(4) | |||
__________ | |||
-1 | American Mercury Lloyds Insurance Company is not owned but is controlled by the Company through its attorney-in-fact, Mercury Select Management Company, Inc. | ||
-2 | Mercury County Mutual Insurance Company is not owned but is controlled by the Company through a management contract. | ||
-3 | Special purpose investment vehicle formed in 2013. | ||
-4 | Special purpose investment vehicle formed in 2014. | ||
The consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“GAAP”), which differ in some respects from those filed in reports to insurance regulatory authorities. All intercompany transactions and balances have been eliminated. | |||
Use of Estimates | The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. These estimates require the Company to apply complex assumptions and judgments, and often the Company must make estimates about effects of matters that are inherently uncertain and will likely change in subsequent periods. The most significant assumptions in the preparation of these consolidated financial statements relate to reserves for losses and loss adjustment expenses. Actual results could differ from those estimates. | ||
Investments | The Company applies the fair value option to all fixed maturity and equity securities and short-term investments at the time an eligible item is first recognized. The cost of investments sold is determined on a first-in and first-out method and realized gains and losses are included in net realized investment gains (losses). Gains and losses due to changes in fair value for items measured at fair value pursuant to application of the fair value option are included in net realized investment gains (losses), while interest and dividend income on the investment holdings are recognized on an accrual basis on each measurement date and are included in net investment income. The primary reasons for electing the fair value option were simplification and cost-benefit considerations as well as the expansion of the use of fair value measurement by the Company consistent with the long-term measurement objectives of the FASB for accounting for financial instruments. See Note 2 for additional information regarding the fair value option. | ||
Fixed maturity securities include debt securities, which may have fixed or variable principal payment schedules, may be held for indefinite periods of time, and may be used as a part of the Company’s asset/liability strategy or sold in response to changes in interest rates, anticipated prepayments, risk/reward characteristics, liquidity needs, tax planning considerations, or other economic factors. Premiums and discounts on fixed maturities are amortized using first call date and are adjusted for anticipated prepayments. Premiums and discounts on mortgage-backed securities are adjusted for anticipated prepayment using the retrospective method, with the exception of some beneficial interests in securitized financial assets, which are accounted for using the prospective method. | |||
Equity securities consist of non-redeemable preferred stocks, common stocks on which dividend income is partially tax-sheltered by the 70% corporate dividend received deduction, and a partnership interest in a private credit fund. | |||
Short-term investments include money market accounts, options, short-term bonds that are highly rated short duration securities and redeemable within one year, and total return swaps. | |||
The Company writes covered call options through listed and over-the-counter exchanges. When the Company writes an option, an amount equal to the premium received by the Company is recorded as a liability and is subsequently adjusted to the current fair value of the option written. Premiums received from writing options that expire unexercised are treated by the Company on the expiration date as realized gains from investments. If a call option is exercised, the premium is added to the proceeds from the sale of the underlying security or currency in determining whether the Company has realized a gain or loss. The Company, as writer of an option, bears the market risk of an unfavorable change in the price of the security underlying the written option. | |||
Fair Value Of Financial Instruments | The financial instruments recorded in the consolidated balance sheets include investments, receivables, total return swaps, interest rate swaps, accounts payable, equity contracts, and secured and unsecured notes payable. As discussed above, all investments are carried at fair value on the consolidated balance sheets, including $0 and $11.7 million of fixed maturities and equity securities, respectively, which are valued based on broker quotes for underlying debt and credit instruments and an estimated benchmark spread for similar assets in active markets. The fair value of the Company’s $120 million and $20 million secured notes, classified as Level 2 in the fair value hierarchy described in Note 3, is estimated based on assumptions and inputs, such as the market value of underlying collateral and reset rates, for similarly termed notes that are observable in the market. The fair value of the Company’s $150 million unsecured note, classified as Level 2 in the fair value hierarchy described in Note 3, is based on the unadjusted quoted price for similar notes in active markets. See Note 3 for methods and assumptions used in estimating fair values of the total return swaps, interest rate swaps, and equity contracts. Due to their short-term maturity, the carrying values of receivables and accounts payable approximate their fair market values. | ||
Deferred Policy Acquisition Costs | Deferred policy acquisition costs consist of commissions paid to outside agents, premium taxes, salaries, and certain other underwriting costs that are incremental or directly related to the successful acquisition of new and renewal insurance contracts and are amortized over the life of the related policy in proportion to premiums earned. Deferred policy acquisition costs are limited to the amount that will remain after deducting from unearned premiums and anticipated investment income, the estimated losses and loss adjustment expenses, and the servicing costs that will be incurred as premiums are earned. The Company’s deferred policy acquisition costs are further limited by excluding those costs not directly related to the successful acquisition of insurance contracts. | ||
Fixed Assets | Fixed assets are stated at historical cost less accumulated depreciation and amortization. The useful life for buildings is 30 to 40 years. Furniture, equipment, and purchased software are depreciated on a combination of straight-line and accelerated methods over 3 to 7 years. The Company has capitalized certain consulting costs, payroll, and payroll-related costs for employees related to computer software developed for internal use, which are amortized on a straight-line method over the estimated useful life of the software, generally not exceeding 7 years . In accordance with applicable accounting standards, capitalization ceases no later than the point at which a computer software project is substantially complete and ready for its intended use. Leasehold improvements are amortized over the shorter of the useful life of the assets or the life of the associated lease. | ||
The Company periodically assesses long-lived assets or asset groups including building and equipment, for recoverability when events or changes in circumstances indicate that their carrying amount may not be recoverable. If the Company identifies an indicator of impairment, the Company assesses recoverability by comparing the carrying amount of the asset to the sum of the undiscounted cash flows expected to result from the use and the eventual disposal of the asset. An impairment loss is recognized when the carrying amount is not recoverable and is measured as the excess of carrying value over fair value. | |||
Goodwill And Other Intangible Assets | Goodwill and other intangible assets arise as a result of business acquisitions and consist of the excess of the cost of the acquisitions over the tangible and intangible assets acquired and liabilities assumed and identifiable intangible assets acquired. Identifiable intangible assets consist of the value of customer relationships, trade names, software and technology, and favorable leases, which are all subject to amortization. | ||
The Company evaluates goodwill for impairment annually or whenever events or changes in circumstances indicate that it is more likely than not that the carrying amount of goodwill may exceed its implied fair value. The Company qualitatively determines whether, more likely than not, the fair value exceeds the carrying amount of a reporting unit. There are numerous assumptions and estimates underlying the qualitative assessments including future earnings, long-term strategies, and the Company’s annual planning and forecasting process. If these planned initiatives do not accomplish the targeted objectives, the assumptions and estimates underlying the qualitative assessments could be adversely affected and have a material effect upon the Company’s financial condition and results of operations. | |||
Premium Revenue Recognition | Premium revenue is recognized on a pro-rata basis over the term of the policies in proportion to the amount of insurance protection provided. Premium revenue includes installment and other fees for services which are recognized in the periods in which the services are rendered. Unearned premiums represent the portion of the premium related to the unexpired policy term. Unearned premiums are predominantly computed monthly on a pro-rata basis and are stated gross of reinsurance deductions, with the reinsurance deduction recorded in other receivables. | ||
Losses And Loss Adjustment Expenses | Unpaid losses and loss adjustment expenses are determined in amounts estimated to cover incurred losses and loss adjustment expenses and established based upon the Company’s assessment of claims pending and the development of prior years’ loss liabilities. These amounts include liabilities based upon individual case estimates for reported losses and loss adjustment expenses and estimates of such amounts that are incurred but not reported. Changes in the estimated liability are charged or credited to operations as the losses and loss adjustment expenses are reestimated. The liability is stated net of anticipated salvage and subrogation recoveries. The amount of reinsurance recoverable is included in other receivables. | ||
Estimating loss reserves is a difficult process as many factors can ultimately affect the final settlement of a claim and, therefore, the reserve that is required. Changes in the regulatory and legal environment, results of litigation, medical costs, the cost of repair materials, and labor rates, among other factors, can impact ultimate claim costs. In addition, time can be a critical part of reserving determinations since the longer the span between the incidence of a loss and the payment or settlement of a claim, the more variable the ultimate settlement amount could be. Accordingly, short-tail claims, such as property damage claims, tend to be more reasonably predictable than long-tail liability claims, such as those involving the Company’s bodily injury (BI) coverages. Management believes that the liability for losses and loss adjustment expenses is adequate to cover the ultimate net cost of losses and loss adjustment expenses incurred to date. Since the provisions for loss reserves are necessarily based upon estimates, the ultimate liability may be more or less than such provisions. | |||
The Company analyzes loss reserves quarterly primarily using the incurred loss, claim count development, and average severity methods described below. The Company also uses the paid loss development method to analyze loss adjustment expense reserves as part of its reserve analysis. When deciding among methods to use, the Company evaluates the credibility of each method based on the maturity of the data available and the claims settlement practices for each particular line of business or coverage within a line of business. When establishing the reserve, the Company will generally analyze the results from all of the methods used rather than relying on a single method. While these methods are designed to determine the ultimate losses on claims under the Company’s policies, there is inherent uncertainty in all actuarial models since they use historical data to project outcomes. The Company believes that the techniques it uses provide a reasonable basis in estimating loss reserves. | |||
• | The incurred loss development method analyzes historical incurred case loss (case reserves plus paid losses) development to estimate ultimate losses. The Company applies development factors against current case incurred losses by accident period to calculate ultimate expected losses. The Company believes that the incurred loss development method provides a reasonable basis for evaluating ultimate losses, particularly in the Company’s larger, more established lines of business which have a long operating history. | ||
• | The average severity method analyzes historical loss payments and/or incurred losses divided by closed claims and/or total claims to calculate an estimated average cost per claim. From this, the expected ultimate average cost per claim can be estimated. The average severity method coupled with the claim count development method provide meaningful information regarding inflation and frequency trends that the Company believes is useful in establishing reserves. The claim count development method analyzes historical claim count development to estimate future incurred claim count development for current claims. The Company applies these development factors against current claim counts by accident period to calculate ultimate expected claim counts. | ||
• | The paid loss development method analyzes historical payment patterns to estimate the amount of losses yet to be paid. The Company uses this method for losses and loss adjustment expenses. | ||
The Company analyzes catastrophe losses separately from non-catastrophe losses. For catastrophe losses, the Company determines claim counts based on claims reported and development expectations from previous catastrophes and applies an average expected loss per claim based on reserves established by adjusters and average losses on previous similar catastrophes. | |||
Derivative Financial Instruments | The Company accounts for all derivative instruments, other than those that meet the normal purchases and sales exception, as either an asset or liability, measured at fair value, which is based on information obtained from independent parties. In addition, changes in fair value are recognized in earnings unless specific hedge accounting criteria are met. The Company’s derivative instruments include a total return swaps and interest rate swaps. | ||
Earnings per Share | Basic earnings per share excludes dilution and reflects net income divided by the weighted average shares of common stock outstanding during the period presented. Diluted earnings per share is based on the weighted average shares of common stock and potential dilutive common stock outstanding during the period presented. At December 31, 2014 and 2013, potential dilutive common stocks consist of outstanding stock options. | ||
Segment Reporting | Operating segments are components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and assessing performance. The Company does not have any operations that require separate disclosure as reportable operating segments for the periods presented. | ||
Income Taxes | Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial reporting basis and the respective tax basis of the Company’s assets and liabilities, and expected benefits of utilizing net operating loss, capital loss, and tax-credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates or laws is recognized in earnings in the period that includes the enactment date. | ||
At December 31, 2014, the Company’s deferred income taxes were in a net liability position, which included a combination of ordinary and capital deferred tax benefits. In assessing the ability to realize deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon generating sufficient taxable income of the appropriate character within the carryback and carryforward periods available under the tax law. Management considers the reversal of deferred tax liabilities, projected future taxable income of an appropriate nature, and tax-planning strategies in making this assessment. The Company believes that through the use of prudent tax planning strategies and the generation of capital gains, sufficient income will be realized in order to maximize the full benefits of its deferred tax assets. Although realization is not assured, management believes that it is more likely than not that the Company’s deferred tax assets will be realized. | |||
Reinsurance | Liabilities for unearned premiums and unpaid losses are stated in the accompanying consolidated financial statements before deductions for ceded reinsurance. The ceded amounts are immaterial and are carried in other receivables. Earned premiums are stated net of deductions for ceded reinsurance. | ||
The Insurance Companies, as primary insurers, are required to pay losses to the extent reinsurers are unable to discharge their obligations under the reinsurance agreements. | |||
Share-Based Compensation | Share-based compensation expense for all share-based payment awards granted or modified is based on the estimated grant-date fair value. The Company recognizes these compensation costs on a straight-line basis over the requisite service period of the award, which is the option vesting term of four or five years for options granted prior to 2008 and four years for options granted subsequent to January 1, 2008, for only those shares expected to vest. The fair value of stock option awards is estimated using the Black-Scholes option pricing model with the grant-date assumptions and weighted-average fair values. | ||
The fair value of each restricted share grant was determined based on the market price on the grant date. Compensation cost is recognized based on management’s best estimate that performance goals will be achieved. If such goals are not met, no compensation cost is recognized and any recognized compensation cost would be reversed. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Accounting Policies [Abstract] | ||||||||||||
Estimated Fair Value Of Financial Instruments | The following table presents estimated fair values of financial instruments at December 31, 2014 and 2013. | |||||||||||
December 31, | ||||||||||||
2014 | 2013 | |||||||||||
(Amounts in thousands) | ||||||||||||
Assets | ||||||||||||
Investments | $ | 3,403,822 | $ | 3,158,312 | ||||||||
Total return swaps | $ | 0 | $ | 1,650 | ||||||||
Liabilities | ||||||||||||
Total return swaps | $ | 4,025 | $ | 0 | ||||||||
Equity contracts | $ | 194 | $ | 140 | ||||||||
Secured notes | $ | 140,000 | $ | 140,000 | ||||||||
Unsecured note | $ | 150,000 | $ | 50,000 | ||||||||
Direct Premium Attributable By Segment | The Company's annual direct premiums written by lines of insurance were: | |||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(Amounts in thousands) | ||||||||||||
Private passenger automobile | $ | 2,223,073 | $ | 2,165,557 | $ | 2,140,531 | ||||||
Homeowners | 374,436 | 340,013 | 318,295 | |||||||||
Commercial automobile | 135,928 | 104,689 | 74,655 | |||||||||
Other lines | 119,732 | 127,213 | 122,239 | |||||||||
Total | $ | 2,853,169 | $ | 2,737,472 | $ | 2,655,720 | ||||||
Investments_Tables
Investments (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||||||||||
Investments [Abstract] | ||||||||||||||||||||||||||||||||||||
Gains And Losses Due To Changes In Fair Value | The following table presents gains (losses) due to changes in fair value of investments that are measured at fair value pursuant to application of the fair value option: | |||||||||||||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||||||||||||||||
Fixed maturity securities | $ | 77,208 | $ | (100,703 | ) | $ | 36,317 | |||||||||||||||||||||||||||||
Equity securities | (32,922 | ) | 56,822 | 9,158 | ||||||||||||||||||||||||||||||||
Short-term investments | (527 | ) | (156 | ) | 34 | |||||||||||||||||||||||||||||||
Total | $ | 43,759 | $ | (44,037 | ) | $ | 45,509 | |||||||||||||||||||||||||||||
Net Realized Investment Gains | A summary of net realized investment gains (losses) is as follows: | |||||||||||||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||||||||||||||||
Net realized gains (losses) from investments and other assets and liabilities: | ||||||||||||||||||||||||||||||||||||
Fixed maturity securities | $ | 74,489 | $ | (95,225 | ) | $ | 47,707 | |||||||||||||||||||||||||||||
Equity securities | 8,715 | 80,910 | 16,679 | |||||||||||||||||||||||||||||||||
Short-term investments | (2,470 | ) | (1,059 | ) | (686 | ) | ||||||||||||||||||||||||||||||
Total return swap | (2,969 | ) | 2,176 | 0 | ||||||||||||||||||||||||||||||||
Options | 3,419 | 1,776 | 2,680 | |||||||||||||||||||||||||||||||||
Total | $ | 81,184 | $ | (11,422 | ) | $ | 66,380 | |||||||||||||||||||||||||||||
Gross Gains And Losses Realized On Sales Of Investments | Gross gains and losses realized on the sales of investments, excluding options, are shown below: | |||||||||||||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||||||||||||||||
Gross | Gross | Net | Gross | Gross | Net | Gross | Gross | Net | ||||||||||||||||||||||||||||
Realized | Realized | Realized | Realized | Realized | Realized | |||||||||||||||||||||||||||||||
Gains | Losses | Gains | Losses | Gains | Losses | |||||||||||||||||||||||||||||||
Fixed maturity securities | $ | 7,015 | $ | (9,734 | ) | $ | (2,719 | ) | $ | 9,320 | $ | (3,842 | ) | $ | 5,478 | $ | 11,473 | $ | (83 | ) | $ | 11,390 | ||||||||||||||
Equity securities | 59,342 | (17,705 | ) | 41,637 | 82,385 | (58,297 | ) | 24,088 | 19,538 | (12,017 | ) | 7,521 | ||||||||||||||||||||||||
Short-term investments | 0 | (1,943 | ) | (1,943 | ) | 0 | (903 | ) | (903 | ) | 2 | (722 | ) | (720 | ) | |||||||||||||||||||||
Estimated Fair Values Of Investments | The estimated fair values at December 31, 2014 by contractual maturity are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. | |||||||||||||||||||||||||||||||||||
Estimated Fair Value | ||||||||||||||||||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||||||||||||||||
Fixed maturity securities: | ||||||||||||||||||||||||||||||||||||
Due in one year or less | $ | 42,637 | ||||||||||||||||||||||||||||||||||
Due after one year through five years | 355,106 | |||||||||||||||||||||||||||||||||||
Due after five years through ten years | 593,934 | |||||||||||||||||||||||||||||||||||
Due after ten years | 1,626,723 | |||||||||||||||||||||||||||||||||||
Total | $ | 2,618,400 | ||||||||||||||||||||||||||||||||||
Investment Income | A summary of net investment income is shown in the following table: | |||||||||||||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||||||||||||||||
Fixed maturity securities | $ | 104,946 | $ | 107,926 | $ | 117,557 | ||||||||||||||||||||||||||||||
Equity securities | 17,313 | 18,249 | 15,831 | |||||||||||||||||||||||||||||||||
Short-term investments | 8,561 | 2,702 | 2,073 | |||||||||||||||||||||||||||||||||
Total investment income | $ | 130,820 | $ | 128,877 | $ | 135,461 | ||||||||||||||||||||||||||||||
Less: investment expense | (5,097 | ) | (4,339 | ) | (3,565 | ) | ||||||||||||||||||||||||||||||
Net investment income | $ | 125,723 | $ | 124,538 | $ | 131,896 | ||||||||||||||||||||||||||||||
Fair_Value_Measurement_Tables
Fair Value Measurement (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||||||||||||||||
Schedule Of Assets And Liabilities Measured At Fair Value On A Recurring Basis Valuation Techniques | The following tables present information about the Company’s assets and liabilities measured at fair value on a recurring basis as of December 31, 2014 and 2013, and indicate the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value: | |||||||||||||||
December 31, 2014 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
(Amounts in thousands) | ||||||||||||||||
Assets | ||||||||||||||||
Fixed maturity securities: | ||||||||||||||||
U.S. government bonds and agencies | $ | 16,108 | $ | 0 | $ | 0 | $ | 16,108 | ||||||||
Municipal securities | 0 | 2,275,455 | 0 | 2,275,455 | ||||||||||||
Mortgage-backed securities | 0 | 47,691 | 0 | 47,691 | ||||||||||||
Corporate securities | 0 | 256,930 | 0 | 256,930 | ||||||||||||
Collateralized loan obligations | 0 | 22,216 | 0 | 22,216 | ||||||||||||
Equity securities: | ||||||||||||||||
Common stock: | ||||||||||||||||
Public utilities | 105,485 | 0 | 0 | 105,485 | ||||||||||||
Banks, trusts and insurance companies | 9,757 | 0 | 0 | 9,757 | ||||||||||||
Energy and other | 257,356 | 0 | 0 | 257,356 | ||||||||||||
Non-redeemable preferred stock | 0 | 28,563 | 0 | 28,563 | ||||||||||||
Partnership interest in a private credit fund | 0 | 0 | 11,719 | 11,719 | ||||||||||||
Short-term investments: | ||||||||||||||||
Short-term bonds | 69,999 | 18,362 | 0 | 88,361 | ||||||||||||
Money market instruments | 284,181 | 0 | 0 | 284,181 | ||||||||||||
Total assets at fair value | $ | 742,886 | $ | 2,649,217 | $ | 11,719 | $ | 3,403,822 | ||||||||
Liabilities | ||||||||||||||||
Other liabilities: | ||||||||||||||||
Total return swaps | $ | 0 | $ | 4,025 | $ | 0 | $ | 4,025 | ||||||||
Options sold | 194 | 0 | 0 | 194 | ||||||||||||
Total liabilities at fair value | $ | 194 | $ | 4,025 | $ | 0 | $ | 4,219 | ||||||||
31-Dec-13 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
(Amounts in thousands) | ||||||||||||||||
Assets | ||||||||||||||||
Fixed maturity securities: | ||||||||||||||||
U.S. government bonds and agencies | $ | 16,096 | $ | 0 | $ | 0 | $ | 16,096 | ||||||||
Municipal securities | 0 | 2,235,323 | 0 | 2,235,323 | ||||||||||||
Mortgage-backed securities | 0 | 40,247 | 0 | 40,247 | ||||||||||||
Corporate securities | 0 | 264,685 | 0 | 264,685 | ||||||||||||
Collateralized debt obligations | 0 | 0 | 4,302 | 4,302 | ||||||||||||
Equity securities: | ||||||||||||||||
Common stock: | ||||||||||||||||
Public utilities | 85,287 | 0 | 0 | 85,287 | ||||||||||||
Banks, trusts and insurance companies | 2,927 | 0 | 0 | 2,927 | ||||||||||||
Energy and other | 151,554 | 0 | 0 | 151,554 | ||||||||||||
Non-redeemable preferred stock | 0 | 29,567 | 0 | 29,567 | ||||||||||||
Partnership interest in a private credit fund | 0 | 0 | 12,548 | 12,548 | ||||||||||||
Short-term investments: | ||||||||||||||||
Short-term bonds | 39,998 | 12,890 | 0 | 52,888 | ||||||||||||
Money market instruments | 262,888 | 0 | 0 | 262,888 | ||||||||||||
Other assets: | ||||||||||||||||
Total return swap | 0 | 1,650 | 0 | 1,650 | ||||||||||||
Total assets at fair value | $ | 558,750 | $ | 2,584,362 | $ | 16,850 | $ | 3,159,962 | ||||||||
Liabilities | ||||||||||||||||
Other liabilities: | ||||||||||||||||
Options sold | $ | 140 | $ | 0 | $ | 0 | $ | 140 | ||||||||
Total liabilities at fair value | $ | 140 | $ | 0 | $ | 0 | $ | 140 | ||||||||
Summary Of Changes In Fair Value Of Level 3 Financial Assets And Financial Liabilities Held At Fair Value | The following table presents a summary of changes in fair value of Level 3 financial assets and financial liabilities held at fair value at December 31: | |||||||||||||||
2014 | 2013 | |||||||||||||||
Collateralized | Partnership | Collateralized | Partnership | |||||||||||||
Debt | Interest in a | Debt | Interest in a | |||||||||||||
Obligations | Private Credit | Obligations | Private Credit | |||||||||||||
Fund | Fund | |||||||||||||||
(Amounts in thousands) | ||||||||||||||||
Beginning Balance | $ | 4,302 | $ | 12,548 | $ | 42,801 | $ | 11,306 | ||||||||
Realized gains included in earnings | (755 | ) | (829 | ) | 740 | 1,242 | ||||||||||
Purchase | 0 | 0 | 0 | 0 | ||||||||||||
Sales | (3,547 | ) | 0 | (30,975 | ) | 0 | ||||||||||
Settlements | 0 | 0 | (8,264 | ) | 0 | |||||||||||
Ending Balance | $ | 0 | $ | 11,719 | $ | 4,302 | $ | 12,548 | ||||||||
The amount of total (losses) gains for the period included in earnings attributable to assets still held at December 31 | $ | 0 | $ | (829 | ) | $ | 321 | $ | 1,242 | |||||||
Fixed_Assets_Tables
Fixed Assets (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Property, Plant and Equipment [Abstract] | ||||||||
Schedule Of Fixed Assets | Fixed assets consist of the following: | |||||||
December 31, | ||||||||
2014 | 2013 | |||||||
(Amounts in thousands) | ||||||||
Land | $ | 26,770 | $ | 26,770 | ||||
Buildings and improvements | 131,174 | 127,940 | ||||||
Furniture and equipment | 107,288 | 108,819 | ||||||
Capitalized software | 162,065 | 147,140 | ||||||
Leasehold improvements | 8,991 | 8,610 | ||||||
436,288 | 419,279 | |||||||
Less accumulated depreciation and amortization | (277,312 | ) | (262,563 | ) | ||||
Fixed assets, net | $ | 158,976 | $ | 156,716 | ||||
Deferred_Policy_Acquisition_Co1
Deferred Policy Acquisition Costs (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Deferred Policy Acquisition Costs Disclosures [Abstract] | ||||||||||||
Schedule Of Deferred Policy Acquisition Costs | Deferred policy acquisition costs are as follows: | |||||||||||
December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(Amounts in thousands) | ||||||||||||
Balance, beginning of year | $ | 194,466 | $ | 185,910 | $ | 171,430 | ||||||
Policy acquisition costs deferred | 528,944 | 514,073 | 492,268 | |||||||||
Amortization | (526,208 | ) | (505,517 | ) | (477,788 | ) | ||||||
Balance, end of year | $ | 197,202 | $ | 194,466 | $ | 185,910 | ||||||
Derivative_Financial_Instrumen1
Derivative Financial Instruments (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
General Discussion of Derivative Instruments and Hedging Activities [Abstract] | ||||||||||||||||
Summary Of Location And Amounts Of Derivative Fair Values In The Consolidated Balance Sheets | The following tables present the location and amounts of derivative fair values in the consolidated balance sheets and derivative gains in the consolidated statements of operations: | |||||||||||||||
Asset Derivatives | Liability Derivatives | |||||||||||||||
December 31, 2014 | December 31, 2013 | December 31, 2014 | December 31, 2013 | |||||||||||||
(Amounts in thousands) | ||||||||||||||||
Total return swap - Other assets | $ | 0 | $ | 1,650 | $ | 0 | $ | 0 | ||||||||
Equity contracts - Other liabilities | 0 | 0 | (194 | ) | (140 | ) | ||||||||||
Total return swap - Other liabilities | 0 | 0 | (4,025 | ) | 0 | |||||||||||
Total derivatives | $ | 0 | $ | 1,650 | $ | (4,219 | ) | $ | (140 | ) | ||||||
Schedule Of Derivative Gains And Losses In The Consolidated Statements Of Operations | ||||||||||||||||
(Losses) Gains Recognized in Income | ||||||||||||||||
Year Ended December 31, | ||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
(Amounts in thousands) | ||||||||||||||||
Total return swap - Net realized investment gains (losses) | $ | (2,969 | ) | $ | 2,176 | $ | 0 | |||||||||
Equity contracts—Net realized investment gains (losses) | 3,419 | 1,776 | 2,680 | |||||||||||||
Interest rate contract - Other revenue | 0 | 103 | 567 | |||||||||||||
Total | $ | 450 | $ | 4,055 | $ | 3,247 | ||||||||||
Goodwill_and_Other_Intangible_1
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||
Schedule Of Components Of Other Intangible Assets | The following table presents the components of other intangible assets: | |||||||||||||
Gross Carrying | Accumulated | Net Carrying | Useful Lives | |||||||||||
Amount | Amortization | Amount | ||||||||||||
(Amounts in thousands) | (in years) | |||||||||||||
As of December 31, 2014: | ||||||||||||||
Customer relationships | $ | 51,755 | $ | (29,402 | ) | $ | 22,353 | 11 | ||||||
Trade names | 15,400 | (3,850 | ) | 11,550 | 24 | |||||||||
Technology | 4,300 | (2,580 | ) | 1,720 | 10 | |||||||||
Favorable leases | 1,725 | (1,725 | ) | 0 | 3 | |||||||||
Total intangible assets, net | $ | 73,180 | $ | (37,557 | ) | $ | 35,623 | |||||||
As of December 31, 2013: | ||||||||||||||
Customer relationships | $ | 51,755 | $ | (24,494 | ) | $ | 27,261 | 11 | ||||||
Trade names | 15,400 | (3,208 | ) | 12,192 | 24 | |||||||||
Technology | 4,300 | (2,150 | ) | 2,150 | 10 | |||||||||
Favorable leases | 1,725 | (1,725 | ) | 0 | 3 | |||||||||
Total intangible assets, net | $ | 73,180 | $ | (31,577 | ) | $ | 41,603 | |||||||
Schedule Of Estimated Future Amortization Expense Related To Intangible Assets | The following table presents the estimated future amortization expense related to intangible assets as of December 31, 2014: | |||||||||||||
Year Ending December 31, | Amortization Expense | |||||||||||||
(Amounts in thousands) | ||||||||||||||
2015 | $ | 5,980 | ||||||||||||
2016 | 5,980 | |||||||||||||
2017 | 5,253 | |||||||||||||
2018 | 5,239 | |||||||||||||
2019 | 4,809 | |||||||||||||
Thereafter | 8,362 | |||||||||||||
Total | $ | 35,623 | ||||||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Components of Income Tax Expense (Benefit), Continuing Operations [Abstract] | ||||||||||||
Components Of Income Tax Expense | The provision for income tax expense consists of the following components: | |||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(Amounts in thousands) | ||||||||||||
Federal | ||||||||||||
Current | $ | 44,469 | $ | 30,266 | $ | 9,340 | ||||||
Deferred | 20,444 | (14,970 | ) | 6,238 | ||||||||
$ | 64,913 | $ | 15,296 | $ | 15,578 | |||||||
State | ||||||||||||
Current | $ | 4,421 | $ | 5,234 | $ | 2,079 | ||||||
Deferred | 142 | (577 | ) | 742 | ||||||||
$ | 4,563 | $ | 4,657 | $ | 2,821 | |||||||
Total | ||||||||||||
Current | $ | 48,890 | $ | 35,500 | $ | 11,419 | ||||||
Deferred | 20,586 | (15,547 | ) | 6,980 | ||||||||
Total | $ | 69,476 | $ | 19,953 | $ | 18,399 | ||||||
Reconciliation Of Income Taxes | The income tax provision reflected in the consolidated statements of operations is reconciled to the federal income tax on income before income taxes based on a statutory rate of 35% as shown in the table below: | |||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(Amounts in thousands) | ||||||||||||
Computed tax expense at 35% | $ | 86,598 | $ | 46,234 | $ | 47,359 | ||||||
Tax-exempt interest income | (27,839 | ) | (26,381 | ) | (27,789 | ) | ||||||
Dividends received deduction | (2,027 | ) | (2,239 | ) | (1,482 | ) | ||||||
State tax expense | 3,872 | 4,944 | 1,918 | |||||||||
Nondeductible expenses | 9,900 | 190 | 317 | |||||||||
Other, net | (1,028 | ) | (2,795 | ) | (1,924 | ) | ||||||
Income tax expense | $ | 69,476 | $ | 19,953 | $ | 18,399 | ||||||
Deferred Tax Assets And Liabilities | Significant components of the Company’s net deferred tax assets and liabilities are as follows: | |||||||||||
December 31, | ||||||||||||
2014 | 2013 | |||||||||||
(Amounts in thousands) | ||||||||||||
Deferred tax assets: | ||||||||||||
20% of net unearned premium | $ | 71,907 | $ | 68,586 | ||||||||
Discounting of loss reserves and salvage and subrogation recoverable for tax purposes | 11,100 | 12,810 | ||||||||||
Write-down of impaired investments | 942 | 1,714 | ||||||||||
Tax credit carryforward | 31,198 | 40,309 | ||||||||||
Expense accruals | 13,395 | 12,497 | ||||||||||
Other deferred tax assets | 7,448 | 5,653 | ||||||||||
Total gross deferred tax assets | 135,990 | 141,569 | ||||||||||
Deferred tax liabilities: | ||||||||||||
Deferred acquisition costs | (69,021 | ) | (68,063 | ) | ||||||||
Tax liability on net unrealized gain on securities carried at fair value | (47,333 | ) | (33,964 | ) | ||||||||
Tax depreciation in excess of book depreciation | (9,414 | ) | (9,667 | ) | ||||||||
Undistributed earnings of insurance subsidiaries | (4,486 | ) | (4,024 | ) | ||||||||
Tax amortization in excess of book amortization | (1,982 | ) | (1,447 | ) | ||||||||
Other deferred tax liabilities | (9,087 | ) | (9,184 | ) | ||||||||
Total gross deferred tax liabilities | (141,323 | ) | (126,349 | ) | ||||||||
Net deferred tax (liabilities) assets | $ | (5,333 | ) | $ | 15,220 | |||||||
Summary Of Unrecognized Tax Benefits | A reconciliation of the beginning and ending balances of unrecognized tax benefits is as follows: | |||||||||||
2014 | 2013 | |||||||||||
(Amounts in thousands) | ||||||||||||
Balance at January 1 | $ | 10,784 | $ | 5,926 | ||||||||
Additions based on tax positions related to: | ||||||||||||
Current year | 2,277 | 1,225 | ||||||||||
Prior years | (258 | ) | 3,633 | |||||||||
Additions (reductions) as a result of lapse of the applicable statute of limitations | (191 | ) | 0 | |||||||||
Balance at December 31 | $ | 12,612 | $ | 10,784 | ||||||||
Losses_And_Loss_Adjustment_Exp1
Losses And Loss Adjustment Expenses (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Insurance Loss Reserves [Abstract] | ||||||||||||
Activity In The Reserves For Losses And Loss Adjustment Expenses | Activity in the reserves for losses and loss adjustment expenses is summarized as follows: | |||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(Amounts in thousands) | ||||||||||||
Gross reserves at January 1 | $ | 1,038,984 | $ | 1,036,123 | $ | 985,279 | ||||||
Less reinsurance recoverable | (13,927 | ) | (12,155 | ) | (7,921 | ) | ||||||
Net reserves at January 1 | 1,025,057 | 1,023,968 | 977,358 | |||||||||
Incurred losses and loss adjustment expenses related to: | ||||||||||||
Current year | 1,989,315 | 1,959,730 | 1,919,116 | |||||||||
Prior years | (3,193 | ) | 2,960 | 42,332 | ||||||||
Total incurred losses and loss adjustment expenses | 1,986,122 | 1,962,690 | 1,961,448 | |||||||||
Loss and loss adjustment expense payments related to: | ||||||||||||
Current year | 1,347,967 | 1,354,074 | 1,314,748 | |||||||||
Prior years | 585,899 | 607,527 | 600,090 | |||||||||
Total payments | 1,933,866 | 1,961,601 | 1,914,838 | |||||||||
Net reserves at year-end | 1,077,313 | 1,025,057 | 1,023,968 | |||||||||
Reinsurance recoverable | 14,484 | 13,927 | 12,155 | |||||||||
Gross reserves at year-end | $ | 1,091,797 | $ | 1,038,984 | $ | 1,036,123 | ||||||
Dividends_Tables
Dividends (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Dividends [Abstract] | ||||||||||||
Dividends Paid In Total And Per Share | The following table presents shareholder dividends paid in total and per share: | |||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(Amounts in thousands, except per share data) | ||||||||||||
Total paid | $ | 135,496 | $ | 134,776 | $ | 134,105 | ||||||
Per share | $ | 2.4625 | $ | 2.4525 | $ | 2.4425 | ||||||
Statutory_Balances_and_Account1
Statutory Balances and Accounting Practices (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Statutory Balances And Accounting Practices [Abstract] | ||||||||||||
Schedule Of Statutory Net Income And Capital And Surplus | The following table presents the statutory net income and capital and surplus of the Insurance Companies, as reported to regulatory authorities: | |||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(Amounts in thousands) | ||||||||||||
Statutory net income(1) | $ | 155,654 | $ | 235,251 | $ | 63,365 | ||||||
Statutory capital and surplus | $ | 1,438,281 | $ | 1,528,682 | $ | 1,440,973 | ||||||
__________ | ||||||||||||
-1 | Statutory net income excludes changes in the fair value of the investment portfolio as a result of the application of the fair value option under GAAP, and reflects the impacts of other differences from GAAP. |
ShareBased_Compensation_Tables
Share-Based Compensation (Tables) | 12 Months Ended | |||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||
Share-based Compensation [Abstract] | ||||||||||||||||||
Schedule of Cash Proceeds Received from Share-based Payment Awards | ||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||
Cash received from option exercises | $ | 6,247 | $ | 1,446 | $ | 2,492 | ||||||||||||
Compensation cost | 4,112 | 974 | (370 | ) | ||||||||||||||
Excess tax benefit | 148 | 202 | 86 | |||||||||||||||
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | No stock options were awarded in 2014 and 2012. In 2013, the fair value of stock option awards was estimated on the date of grant using a closed-form option valuation model (Black-Scholes) based on the following table, which provides the weighted-average values of assumptions used in the calculation of grand-date fair values during the years ended December 31, 2013. | |||||||||||||||||
2013 | ||||||||||||||||||
Weighted-average grant-date fair value | $7.11 | |||||||||||||||||
Expected volatility | 33.16% - 33.18% | |||||||||||||||||
Weighted-average expected volatility | 33.17% | |||||||||||||||||
Risk-free interest rate | 0.88% - 1.60% | |||||||||||||||||
Expected dividend yield | 5.40% - 5.76% | |||||||||||||||||
Expected term in months | 72 | |||||||||||||||||
Summary of Stock Option Activity | A summary of the stock option activity under the Company’s plans as of December 31, 2014 and changes during the year then ended is presented below: | |||||||||||||||||
Shares | Weighted- | Weighted- | Aggregate | |||||||||||||||
Average | Average | Intrinsic Value | ||||||||||||||||
Exercise Price | Remaining | (in 000’s) | ||||||||||||||||
Contractual Term | ||||||||||||||||||
(Years) | ||||||||||||||||||
Outstanding at January 1, 2014 | 433,750 | $ | 49.11 | |||||||||||||||
Granted | 0 | |||||||||||||||||
Exercised | -155,050 | $ | 46.34 | |||||||||||||||
Canceled or expired | -30,700 | $ | 57.1 | |||||||||||||||
Outstanding at December 31, 2014 | 248,000 | $ | 49.85 | 3.7 | $ | 1,774 | ||||||||||||
Exercisable at December 31, 2014 | 188,000 | $ | 51.86 | 2.2 | $ | 985 | ||||||||||||
Schedule of Options Authorized under Stock Option Plans, by Exercise Price Range | The following table presents information regarding stock options outstanding at December 31, 2014: | |||||||||||||||||
Options Outstanding | Options Exercisable | |||||||||||||||||
Range of Exercise Prices | Number of | Weighted-Avg. | Weighted- | Number of | Weighted- | |||||||||||||
Options | Remaining | Avg. Exercise | Options | Avg. Exercise | ||||||||||||||
Contractual Life | Price | Price | ||||||||||||||||
(Years) | ||||||||||||||||||
$33.61-47.61 | 105,500 | 6.5 | $ | 43.67 | 45,500 | $ | 43.86 | |||||||||||
$50.01-52.13 | 63,500 | 2.2 | $ | 51.03 | 63,500 | $ | 51.03 | |||||||||||
$54.93-58.83 | 79,000 | 1.3 | $ | 57.14 | 79,000 | $ | 57.14 | |||||||||||
Summary of Grants | The following table presents the grants summary: | |||||||||||||||||
Grant Year | ||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||
Three-year performance period ending December 31, | 2016 | 2015 | 2014 | |||||||||||||||
Vesting shares, target (net of forfeited) | 86,500 | 80,500 | 80,500 | |||||||||||||||
Vesting shares, maximum (net of forfeited) | 162,188 | 181,125 | 181,125 | |||||||||||||||
Summary of Vested And Unvested RSU | The restricted stock unit activity as of December 31, 2014, 2013, and 2012 and changes during the years then ended is as follows: | |||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||
Shares | Weighted- | Shares | Weighted- | Shares | Weighted- | |||||||||||||
Average Fair | Average Fair | Average Fair | ||||||||||||||||
Value per Share | Value per Share | Value per Share | ||||||||||||||||
Outstanding at January 1 | 170,500 | $ | 39.64 | 169,000 | $ | 42.22 | 135,000 | $ | 40.7 | |||||||||
Granted | 93,500 | $ | 45.17 | 84,500 | $ | 36.82 | 92,000 | $ | 44.01 | |||||||||
Vested | 0 | 0 | 0 | |||||||||||||||
Forfeited/Canceled | -16,500 | $ | 43.99 | -3,000 | $ | 36.82 | -3,000 | $ | 44.01 | |||||||||
Expired | -80,500 | $ | 44.01 | -80,000 | $ | 40.22 | -55,000 | $ | 41.4 | |||||||||
Outstanding at December 31 | 167,000 | $ | 41.15 | 170,500 | $ | 39.64 | 169,000 | $ | 42.22 | |||||||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||
Earnings Per Share Reconciliation [Abstract] | |||||||||||||||||||||||||||||||||
Reconciliation Of Numerators And Denominators Of Basic And Diluted Earnings Per Share | A reconciliation of the numerators and denominators of the basic and diluted earnings per share calculation for income from operations is presented below: | ||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||||||
Income | Weighted | Per-Share | Income | Weighted | Per-Share | Income | Weighted | Per-Share | |||||||||||||||||||||||||
(Numerator) | Shares | Amount | (Numerator) | Shares | Amount | (Numerator) | Shares | Amount | |||||||||||||||||||||||||
(Denominator) | (Denominator) | (Denominator) | |||||||||||||||||||||||||||||||
(Amounts and numbers in thousands, except per-share data) | |||||||||||||||||||||||||||||||||
Basic EPS | |||||||||||||||||||||||||||||||||
Income available to common stockholders | $ | 177,949 | 55,008 | $ | 3.23 | $ | 112,143 | 54,947 | $ | 2.04 | $ | 116,911 | 54,899 | $ | 2.13 | ||||||||||||||||||
Effect of dilutive securities: | |||||||||||||||||||||||||||||||||
Options | 0 | 12 | 0 | 17 | 0 | 23 | |||||||||||||||||||||||||||
Diluted EPS | |||||||||||||||||||||||||||||||||
Income available to common stockholders after assumed conversions | $ | 177,949 | 55,020 | $ | 3.23 | $ | 112,143 | 54,964 | $ | 2.04 | $ | 116,911 | 54,922 | $ | 2.13 | ||||||||||||||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Commitments and Contingencies Disclosure [Abstract] | ||||
Future Minimum Commitments For Operating Leases | The following table presents future minimum commitments for operating leases as of December 31, 2014: | |||
Year Ending December 31, | Operating Leases | |||
(Amounts in thousands) | ||||
2015 | $ | 14,179 | ||
2016 | 12,752 | |||
2017 | 8,870 | |||
2018 | 3,701 | |||
2019 | 514 | |||
Thereafter | 26 | |||
Quarterly_Financial_Informatio1
Quarterly Financial Information (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Quarterly Financial Data [Abstract] | |||||||||||||||||
Summary Of Quarterly Financial Data | Summarized quarterly financial data for 2014 and 2013 are as follows: | ||||||||||||||||
Quarter Ended | |||||||||||||||||
31-Mar | 30-Jun | September 30 | December 31 | ||||||||||||||
(Amounts in thousands, except per share data) | |||||||||||||||||
2014 | |||||||||||||||||
Net premiums earned | $ | 683,701 | $ | 697,889 | $ | 705,237 | $ | 709,368 | |||||||||
Change in fair value of investments pursuant to the fair value option | $ | 45,699 | $ | 41,412 | $ | (20,528 | ) | $ | (22,824 | ) | |||||||
Income (loss) before income taxes | $ | 102,030 | $ | 136,436 | $ | 37,120 | $ | (28,161 | ) | ||||||||
Net income (loss) | $ | 72,649 | $ | 94,960 | $ | 31,296 | $ | (20,956 | ) | ||||||||
Basic earnings per share (2) | $ | 1.32 | $ | 1.73 | $ | 0.57 | $ | (0.38 | ) | ||||||||
Diluted earnings per share (2) | $ | 1.32 | $ | 1.73 | $ | 0.57 | $ | (0.38 | ) | (1) | |||||||
Dividends paid per share | $ | 0.615 | $ | 0.615 | $ | 0.6175 | $ | 0.6175 | |||||||||
2013 | |||||||||||||||||
Net premiums earned | $ | 662,595 | $ | 675,787 | $ | 678,913 | $ | 680,892 | |||||||||
Change in fair value of investments pursuant to the fair value option | $ | 43,467 | $ | (78,726 | ) | $ | 21,815 | $ | (30,593 | ) | |||||||
Income (loss) before income taxes | $ | 90,994 | $ | (24,959 | ) | $ | 54,793 | $ | 11,268 | ||||||||
Net income (loss) | $ | 66,461 | $ | (9,264 | ) | $ | 39,570 | $ | 15,376 | ||||||||
Basic earnings per share | $ | 1.21 | $ | (0.17 | ) | $ | 0.72 | $ | 0.28 | ||||||||
Diluted earnings per share | $ | 1.21 | $ | (0.17 | ) | (1) | $ | 0.72 | $ | 0.28 | |||||||
Dividends paid per share | $ | 0.6125 | $ | 0.6125 | $ | 0.6125 | $ | 0.615 | |||||||||
__________ | |||||||||||||||||
-1 | The dilutive impact of incremental shares is excluded from net loss position in accordance with GAAP. | ||||||||||||||||
-2 | The basic and diluted earnings per share do not sum due to rounding. |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies (Narrative) (Details) (USD $) | 12 Months Ended | 0 Months Ended | |||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Aug. 10, 2014 | Feb. 13, 2014 | Aug. 09, 2013 | Feb. 13, 2015 | |
State | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Number of insurance companies | 13 | ||||||
Number of States in which Entity Operates | 13 | ||||||
Percentage of direct premiums written as private passenger automobile lines of insurance | 77.00% | ||||||
Percentage of private passenger automobile premiums written in California | 83.00% | 81.00% | 78.00% | ||||
Percentage by which dividend income on non redeemable preferred stock, partnership, common stock is partially tax-sheltered | 70.00% | ||||||
Other liabilities | $207,028,000 | $170,665,000 | |||||
Marketable securities, fixed maturities | 0 | ||||||
Marketable securities, equity securities | 11,700,000 | ||||||
Insurance companies security deposits | 18,000,000 | 17,000,000 | |||||
Deferred policy acquisition cost amortization | 526,208,000 | 505,517,000 | 477,788,000 | ||||
Advertising expenses | 23,000,000 | 20,000,000 | 19,000,000 | ||||
Impairment charges | 0 | 0 | 0 | ||||
Goodwill impairment loss | 0 | 0 | |||||
Premiums written, net | 2,840,000,000 | 2,730,000,000 | 2,650,000,000 | ||||
Credit facility amount | 150,000,000 | ||||||
FFL [Member] | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Notional amount | 114,000,000 | ||||||
AFL [Member] | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Notional amount | 144,000,000 | ||||||
Options Granted Prior To 2008 [Member] | Minimum [Member] | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Option vesting term, years | 4 years | ||||||
Options Granted Prior To 2008 [Member] | Maximum [Member] | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Option vesting term, years | 5 years | ||||||
Options Granted Subsequent To January 1, 2008 [Member] | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Option vesting term, years | 4 years | ||||||
Building [Member] | Minimum [Member] | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Useful life, in years | 30 years | ||||||
Building [Member] | Maximum [Member] | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Useful life, in years | 40 years | ||||||
Furniture Equipment And Purchase Software [Member] | Minimum [Member] | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Useful life, in years | 3 years | ||||||
Furniture Equipment And Purchase Software [Member] | Maximum [Member] | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Useful life, in years | 7 years | ||||||
Software [Member] | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Useful life, in years | 7 years | ||||||
Swap [Member] | FFL [Member] | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Term of swap agreement | 3 years | ||||||
Notional amount | 114,000,000 | ||||||
Swap agreement collateral | 30,000,000 | ||||||
Swap [Member] | AFL [Member] | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Term of swap agreement | 3 years | ||||||
Notional amount | 144,000,000 | ||||||
Swap agreement collateral | 40,000,000 | ||||||
LIBOR [Member] | Swap [Member] | FFL [Member] | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Basis spread on variable rate | 1.40% | ||||||
LIBOR [Member] | Swap [Member] | AFL [Member] | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Basis spread on variable rate | 1.20% | ||||||
Secured Note No1 [Member] | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Debt instrument, fair value | 120,000,000 | ||||||
Secured Note No2 [Member] | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Debt instrument, fair value | 20,000,000 | ||||||
Call Option [Member] | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Other liabilities | 200,000 | 100,000 | |||||
Unsecured Debt [Member] | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Debt instrument, fair value | 150,000,000 | 50,000,000 | |||||
Revolving Credit Facility [Member] | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Credit facility amount | $150,000,000 | ||||||
Scenario, Forecast [Member] | LIBOR [Member] | Swap [Member] | FFL [Member] | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Basis spread on variable rate | 1.35% |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies (Fair Value of Financial Instruments) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Investments | $3,403,822,000 | $3,158,312,000 |
Total return swap | 0 | 1,650,000 |
Credit facility amount | 150,000,000 | |
Investments [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Investments | 3,403,822,000 | 3,158,312,000 |
Interest Rate Swap [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Interest rate swap agreements, liabilities | 4,025,000 | 0 |
Secured Debt [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Financial instrument, fair value | 140,000,000 | 140,000,000 |
Unsecured Debt [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Financial instrument, fair value | 150,000,000 | 50,000,000 |
Equity Contract [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Equity contracts | 194,000 | 140,000 |
Revolving Credit Facility [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Credit facility amount | $150,000,000 |
Summary_of_Significant_Account5
Summary of Significant Accounting Policies (Direct Premium Attributable By Segment) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment Reporting Information [Line Items] | |||
Annual direct premiums written | $2,853,169 | $2,737,472 | $2,655,720 |
Private Passenger Automobile [Member] | |||
Segment Reporting Information [Line Items] | |||
Annual direct premiums written | 2,223,073 | 2,165,557 | 2,140,531 |
Homeowners [Member] | |||
Segment Reporting Information [Line Items] | |||
Annual direct premiums written | 374,436 | 340,013 | 318,295 |
Commercial Automobile [Member] | |||
Segment Reporting Information [Line Items] | |||
Annual direct premiums written | 135,928 | 104,689 | 74,655 |
Other Lines [Member] | |||
Segment Reporting Information [Line Items] | |||
Annual direct premiums written | $119,732 | $127,213 | $122,239 |
Investments_Gains_And_Losses_D
Investments (Gains And Losses Due To Changes In Fair Value Of Investments) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | |||||||||||
Gains and losses due to changes in fair value of investments | ($22,824) | ($20,528) | $41,412 | $45,699 | ($30,593) | $21,815 | ($78,726) | $43,467 | $43,759 | ($44,037) | $45,509 |
Fixed Maturity Securities [Member] | |||||||||||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | |||||||||||
Gains and losses due to changes in fair value of investments | 77,208 | -100,703 | 36,317 | ||||||||
Equity Securities [Member] | |||||||||||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | |||||||||||
Gains and losses due to changes in fair value of investments | -32,922 | 56,822 | 9,158 | ||||||||
Short-Term Investments [Member] | |||||||||||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | |||||||||||
Gains and losses due to changes in fair value of investments | ($527) | ($156) | $34 |
Investments_Net_Realized_Inves
Investments (Net Realized Investments Gains) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Investments [Line Items] | |||
Net realized investment gains (losses) | $81,184 | ($11,422) | $66,380 |
Swap [Member] | |||
Investments [Line Items] | |||
Net realized investment gains (losses) | -2,969 | 2,176 | 0 |
Fixed Maturity Securities [Member] | |||
Investments [Line Items] | |||
Net realized investment gains (losses) | 74,489 | -95,225 | 47,707 |
Equity Securities [Member] | |||
Investments [Line Items] | |||
Net realized investment gains (losses) | 8,715 | 80,910 | 16,679 |
Short-Term Investments [Member] | |||
Investments [Line Items] | |||
Net realized investment gains (losses) | -2,470 | -1,059 | -686 |
Option [Member] | |||
Investments [Line Items] | |||
Net realized investment gains (losses) | $3,419 | $1,776 | $2,680 |
Investments_Gross_Gains_And_Lo
Investments (Gross Gains And Losses Realized On Sales Of Investments) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Fixed Maturity Securities [Member] | |||
Investments [Line Items] | |||
Gross Realized Gains | $7,015 | $9,320 | $11,473 |
Gross Realized Losses | -9,734 | -3,842 | -83 |
Net | -2,719 | 5,478 | 11,390 |
Equity Securities [Member] | |||
Investments [Line Items] | |||
Gross Realized Gains | 59,342 | 82,385 | 19,538 |
Gross Realized Losses | -17,705 | -58,297 | -12,017 |
Net | 41,637 | 24,088 | 7,521 |
Short-Term Investments [Member] | |||
Investments [Line Items] | |||
Gross Realized Gains | 0 | 0 | 2 |
Gross Realized Losses | -1,943 | -903 | -722 |
Net | ($1,943) | ($903) | ($720) |
Investments_Estimated_Fair_Val
Investments (Estimated Fair Value Of Investments) (Details) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2014 |
Fixed maturity securities: | |
Due in one year or less | $42,637 |
Due after one year through five years | 355,106 |
Due after five years through ten years | 593,934 |
Due after ten years | 1,626,723 |
Total | $2,618,400 |
Percentage of fixed maturities | 1.40% |
Investments_Investment_Income_
Investments (Investment Income) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Investments [Line Items] | |||
Total investment income | $130,820 | $128,877 | $135,461 |
Less: Investment expense | -5,097 | -4,339 | -3,565 |
Net investment income | 125,723 | 124,538 | 131,896 |
Fixed Maturity Securities [Member] | |||
Investments [Line Items] | |||
Total investment income | 104,946 | 107,926 | 117,557 |
Equity Securities [Member] | |||
Investments [Line Items] | |||
Total investment income | 17,313 | 18,249 | 15,831 |
Short-Term Investments [Member] | |||
Investments [Line Items] | |||
Total investment income | $8,561 | $2,702 | $2,073 |
Fair_Value_Measurement_Narrati
Fair Value Measurement (Narrative) (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Fair Value Measurement [Line Items] | ||
Percentage of portfolio of unadjusted fair values obtained | 99.70% | |
Percentage of portfolio of specific unadjusted broker quotes obtained | 0.30% | |
Minimum [Member] | ||
Fair Value Measurement [Line Items] | ||
Number of knowledgeable outside security brokers consulted to determine fair value | 1 | |
Commercial Mortgage Backed Securities [Member] | Level 2 [Member] | ||
Fair Value Measurement [Line Items] | ||
Trading securities, fair value disclosure | 32.5 | $21.90 |
Fair_Value_Measurement_Schedul
Fair Value Measurement (Schedule Of Assets And Liabilities Measured At Fair Value On A Recurring Basis Valuation Techniques) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value Measurement [Line Items] | ||
Assets | $3,403,822 | $3,159,962 |
Liabilities | 4,219 | 140 |
Level 1 [Member] | ||
Fair Value Measurement [Line Items] | ||
Assets | 742,886 | 558,750 |
Liabilities | 194 | 140 |
Level 2 [Member] | ||
Fair Value Measurement [Line Items] | ||
Assets | 2,649,217 | 2,584,362 |
Liabilities | 4,025 | 0 |
Level 3 [Member] | ||
Fair Value Measurement [Line Items] | ||
Assets | 11,719 | 16,850 |
Liabilities | 0 | 0 |
Short-term bonds [Member] | ||
Fair Value Measurement [Line Items] | ||
Assets | 88,361 | 52,888 |
Short-term bonds [Member] | Level 1 [Member] | ||
Fair Value Measurement [Line Items] | ||
Assets | 69,999 | 39,998 |
Short-term bonds [Member] | Level 2 [Member] | ||
Fair Value Measurement [Line Items] | ||
Assets | 18,362 | 12,890 |
Short-term bonds [Member] | Level 3 [Member] | ||
Fair Value Measurement [Line Items] | ||
Assets | 0 | 0 |
Money market instruments [Member] | ||
Fair Value Measurement [Line Items] | ||
Assets | 284,181 | 1,650 |
Money market instruments [Member] | Level 1 [Member] | ||
Fair Value Measurement [Line Items] | ||
Assets | 284,181 | 0 |
Money market instruments [Member] | Level 2 [Member] | ||
Fair Value Measurement [Line Items] | ||
Assets | 0 | 1,650 |
Money market instruments [Member] | Level 3 [Member] | ||
Fair Value Measurement [Line Items] | ||
Assets | 0 | 0 |
Total Return Swap [Member] | ||
Fair Value Measurement [Line Items] | ||
Liabilities | 4,025 | |
Total Return Swap [Member] | Level 1 [Member] | ||
Fair Value Measurement [Line Items] | ||
Liabilities | 0 | |
Total Return Swap [Member] | Level 2 [Member] | ||
Fair Value Measurement [Line Items] | ||
Liabilities | 4,025 | |
Total Return Swap [Member] | Level 3 [Member] | ||
Fair Value Measurement [Line Items] | ||
Liabilities | 0 | |
Equity contracts [Member] | ||
Fair Value Measurement [Line Items] | ||
Liabilities | 194 | 140 |
Equity contracts [Member] | Level 1 [Member] | ||
Fair Value Measurement [Line Items] | ||
Liabilities | 194 | 140 |
Equity contracts [Member] | Level 2 [Member] | ||
Fair Value Measurement [Line Items] | ||
Liabilities | 0 | 0 |
Equity contracts [Member] | Level 3 [Member] | ||
Fair Value Measurement [Line Items] | ||
Liabilities | 0 | 0 |
Interest rate swap agreements [Member] | ||
Fair Value Measurement [Line Items] | ||
Assets | 262,888 | |
Interest rate swap agreements [Member] | Level 1 [Member] | ||
Fair Value Measurement [Line Items] | ||
Assets | 262,888 | |
Interest rate swap agreements [Member] | Level 2 [Member] | ||
Fair Value Measurement [Line Items] | ||
Assets | 0 | |
Interest rate swap agreements [Member] | Level 3 [Member] | ||
Fair Value Measurement [Line Items] | ||
Assets | 0 | |
Fixed Maturity Securities [Member] | U.S. government bonds and agencies [Member] | ||
Fair Value Measurement [Line Items] | ||
Assets | 16,108 | 16,096 |
Fixed Maturity Securities [Member] | U.S. government bonds and agencies [Member] | Level 1 [Member] | ||
Fair Value Measurement [Line Items] | ||
Assets | 16,108 | 16,096 |
Fixed Maturity Securities [Member] | U.S. government bonds and agencies [Member] | Level 2 [Member] | ||
Fair Value Measurement [Line Items] | ||
Assets | 0 | 0 |
Fixed Maturity Securities [Member] | U.S. government bonds and agencies [Member] | Level 3 [Member] | ||
Fair Value Measurement [Line Items] | ||
Assets | 0 | 0 |
Fixed Maturity Securities [Member] | Municipal securities [Member] | ||
Fair Value Measurement [Line Items] | ||
Assets | 2,275,455 | 2,235,323 |
Fixed Maturity Securities [Member] | Municipal securities [Member] | Level 1 [Member] | ||
Fair Value Measurement [Line Items] | ||
Assets | 0 | 0 |
Fixed Maturity Securities [Member] | Municipal securities [Member] | Level 2 [Member] | ||
Fair Value Measurement [Line Items] | ||
Assets | 2,275,455 | 2,235,323 |
Fixed Maturity Securities [Member] | Municipal securities [Member] | Level 3 [Member] | ||
Fair Value Measurement [Line Items] | ||
Assets | 0 | 0 |
Fixed Maturity Securities [Member] | Mortgage-backed securities [Member] | ||
Fair Value Measurement [Line Items] | ||
Assets | 47,691 | 40,247 |
Fixed Maturity Securities [Member] | Mortgage-backed securities [Member] | Level 1 [Member] | ||
Fair Value Measurement [Line Items] | ||
Assets | 0 | 0 |
Fixed Maturity Securities [Member] | Mortgage-backed securities [Member] | Level 2 [Member] | ||
Fair Value Measurement [Line Items] | ||
Assets | 47,691 | 40,247 |
Fixed Maturity Securities [Member] | Mortgage-backed securities [Member] | Level 3 [Member] | ||
Fair Value Measurement [Line Items] | ||
Assets | 0 | 0 |
Fixed Maturity Securities [Member] | Corporate Securities [Member] | ||
Fair Value Measurement [Line Items] | ||
Assets | 256,930 | 264,685 |
Fixed Maturity Securities [Member] | Corporate Securities [Member] | Level 1 [Member] | ||
Fair Value Measurement [Line Items] | ||
Assets | 0 | 0 |
Fixed Maturity Securities [Member] | Corporate Securities [Member] | Level 2 [Member] | ||
Fair Value Measurement [Line Items] | ||
Assets | 256,930 | 264,685 |
Fixed Maturity Securities [Member] | Corporate Securities [Member] | Level 3 [Member] | ||
Fair Value Measurement [Line Items] | ||
Assets | 0 | 0 |
Fixed Maturity Securities [Member] | Collateralized debt obligations [Member] | ||
Fair Value Measurement [Line Items] | ||
Assets | 22,216 | 4,302 |
Fixed Maturity Securities [Member] | Collateralized debt obligations [Member] | Level 1 [Member] | ||
Fair Value Measurement [Line Items] | ||
Assets | 0 | 0 |
Fixed Maturity Securities [Member] | Collateralized debt obligations [Member] | Level 2 [Member] | ||
Fair Value Measurement [Line Items] | ||
Assets | 22,216 | 0 |
Fixed Maturity Securities [Member] | Collateralized debt obligations [Member] | Level 3 [Member] | ||
Fair Value Measurement [Line Items] | ||
Assets | 0 | 4,302 |
Equity Securities [Member] | Public utilities [Member] | ||
Fair Value Measurement [Line Items] | ||
Assets | 105,485 | 85,287 |
Equity Securities [Member] | Public utilities [Member] | Level 1 [Member] | ||
Fair Value Measurement [Line Items] | ||
Assets | 105,485 | 85,287 |
Equity Securities [Member] | Public utilities [Member] | Level 2 [Member] | ||
Fair Value Measurement [Line Items] | ||
Assets | 0 | 0 |
Equity Securities [Member] | Public utilities [Member] | Level 3 [Member] | ||
Fair Value Measurement [Line Items] | ||
Assets | 0 | 0 |
Equity Securities [Member] | Banks, trusts and insurance companies [Member] | ||
Fair Value Measurement [Line Items] | ||
Assets | 9,757 | 2,927 |
Equity Securities [Member] | Banks, trusts and insurance companies [Member] | Level 1 [Member] | ||
Fair Value Measurement [Line Items] | ||
Assets | 9,757 | 2,927 |
Equity Securities [Member] | Banks, trusts and insurance companies [Member] | Level 2 [Member] | ||
Fair Value Measurement [Line Items] | ||
Assets | 0 | 0 |
Equity Securities [Member] | Banks, trusts and insurance companies [Member] | Level 3 [Member] | ||
Fair Value Measurement [Line Items] | ||
Assets | 0 | 0 |
Equity Securities [Member] | Energy and other [Member] | ||
Fair Value Measurement [Line Items] | ||
Assets | 257,356 | 151,554 |
Equity Securities [Member] | Energy and other [Member] | Level 1 [Member] | ||
Fair Value Measurement [Line Items] | ||
Assets | 257,356 | 151,554 |
Equity Securities [Member] | Energy and other [Member] | Level 2 [Member] | ||
Fair Value Measurement [Line Items] | ||
Assets | 0 | 0 |
Equity Securities [Member] | Energy and other [Member] | Level 3 [Member] | ||
Fair Value Measurement [Line Items] | ||
Assets | 0 | 0 |
Equity Securities [Member] | Non-redeemable preferred stock [Member] | ||
Fair Value Measurement [Line Items] | ||
Assets | 28,563 | 29,567 |
Equity Securities [Member] | Non-redeemable preferred stock [Member] | Level 1 [Member] | ||
Fair Value Measurement [Line Items] | ||
Assets | 0 | 0 |
Equity Securities [Member] | Non-redeemable preferred stock [Member] | Level 2 [Member] | ||
Fair Value Measurement [Line Items] | ||
Assets | 28,563 | 29,567 |
Equity Securities [Member] | Non-redeemable preferred stock [Member] | Level 3 [Member] | ||
Fair Value Measurement [Line Items] | ||
Assets | 0 | 0 |
Equity Securities [Member] | Partnership interest in a private credit fund [Member] | ||
Fair Value Measurement [Line Items] | ||
Assets | 11,719 | 12,548 |
Equity Securities [Member] | Partnership interest in a private credit fund [Member] | Level 1 [Member] | ||
Fair Value Measurement [Line Items] | ||
Assets | 0 | 0 |
Equity Securities [Member] | Partnership interest in a private credit fund [Member] | Level 2 [Member] | ||
Fair Value Measurement [Line Items] | ||
Assets | 0 | 0 |
Equity Securities [Member] | Partnership interest in a private credit fund [Member] | Level 3 [Member] | ||
Fair Value Measurement [Line Items] | ||
Assets | $11,719 | $12,548 |
Fair_Value_Measurement_Summary
Fair Value Measurement (Summary Of Changes In Fair Value Of Level 3 Financial Assets And Financial Liabilities Held At Fair Value) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Collateralized Debt Obligations [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | $4,302 | $42,801 |
Realized gains included in earnings | -755 | 740 |
Purchase | 0 | 0 |
Sales | -3,547 | -30,975 |
Settlements | 0 | -8,264 |
Ending Balance | 0 | 4,302 |
The amount of total gains (losses) for period included in earnings attributable to assets still held at December 31 | 0 | 321 |
Partnership Interest in a Private Credit Fund [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | 12,548 | 11,306 |
Realized gains included in earnings | -829 | 1,242 |
Purchase | 0 | 0 |
Sales | 0 | 0 |
Settlements | 0 | 0 |
Ending Balance | 11,719 | 12,548 |
The amount of total gains (losses) for period included in earnings attributable to assets still held at December 31 | ($829) | $1,242 |
Fixed_Assets_Details
Fixed Assets (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Property, Plant and Equipment [Abstract] | |||
Land | $26,770,000 | $26,770,000 | |
Buildings and improvements | 131,174,000 | 127,940,000 | |
Furniture and equipment | 107,288,000 | 108,819,000 | |
Capitalized software | 162,065,000 | 147,140,000 | |
Leasehold improvements | 8,991,000 | 8,610,000 | |
Fixed assets, gross | 436,288,000 | 419,279,000 | |
Less accumulated depreciation and amortization | -277,312,000 | -262,563,000 | |
Fixed assets, net | 158,976,000 | 156,716,000 | |
Depreciation expense | $22,100,000 | $24,600,000 | $30,800,000 |
Deferred_Policy_Acquisition_Co2
Deferred Policy Acquisition Costs (Details) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2010 |
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | ||||
Balance, beginning of year | $194,466 | $185,910 | $171,430 | |
Policy acquisition costs deferred | 528,944 | 514,073 | 492,268 | |
Amortization | -526,208 | -505,517 | -477,788 | |
Balance, end of year | $197,202 | $194,466 | $185,910 | $171,430 |
Notes_Payable_Narrative_Detail
Notes Payable (Narrative) (Details) (USD $) | 0 Months Ended | 12 Months Ended | 0 Months Ended | |
Jul. 02, 2013 | Dec. 31, 2014 | Feb. 06, 2015 | Dec. 31, 2013 | |
Debt Instrument [Line Items] | ||||
Revolving credit facility term | 5 years | |||
Credit facility amount | 150,000,000 | |||
Secured Debt, Other | 120,000,000 | 120,000,000 | ||
Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
Advance rate used to calculate collateral requirement | 75.00% | |||
Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
Advance rate used to calculate collateral requirement | 100.00% | |||
Bank Of America [Member] | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 0.40% | |||
Secured Debt, Other | 20,000,000 | |||
Union Bank [Member] | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 0.40% | |||
AIS [Member] | ||||
Debt Instrument [Line Items] | ||||
Secured Debt, Other | 120,000,000 | |||
Revolving Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Revolving credit facility term | 5 years | |||
Commitment fee on undrawn portion of facility | 0.13% | |||
Credit facility amount | 150,000,000 | |||
Revolving Credit Facility [Member] | Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt to total capital ratio | 0.15 | |||
Commitment fee on undrawn portion of facility | 0.13% | |||
Revolving Credit Facility [Member] | Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt to total capital ratio | 0.25 | |||
Commitment fee on undrawn portion of facility | 0.23% | |||
Revolving Credit Facility [Member] | LIBOR [Member] | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 1.13% | |||
Revolving Credit Facility [Member] | LIBOR [Member] | Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 1.13% | |||
Debt to total capital ratio | 0.15 | |||
Revolving Credit Facility [Member] | LIBOR [Member] | Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 1.63% | |||
Debt to total capital ratio | 0.25 | |||
Subsequent Event [Member] | ||||
Debt Instrument [Line Items] | ||||
Statutory Accounting Practices, Statutory Capital And Surplus, Contributions | $10,000,000 |
Notes_Payable_Schedule_of_Long
Notes Payable (Schedule of Long-term Debt) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Notes Payable [Abstract] | ||||
Secured Debt, Other | $120,000 | $120,000 | ||
Secured loan | 20,000 | 20,000 | ||
Unsecured credit facility | 150,000 | [1] | 50,000 | [1] |
Notes Payable | $290,000 | $190,000 | ||
[1] | On July 2, 2013, the Company entered into an unsecured $200 million five-year revolving credit facility. The interest rate on borrowings under the credit facility is based on the Company's debt to total capital ratio and ranges from LIBOR plus 112.5 basis points when the ratio is under 15% to LIBOR plus 162.5 basis points when the ratio is above 25%. Commitment fees for the undrawn portions of the credit facility range from 12.5 basis points when the ratio is under 15% to 22.5 basis points when the ratio is above 25%. Effective December 3, 2014, the Company extended the maturity date of the unsecured credit facility from June 30, 2018 to December 3, 2019, and expanded the borrowing capacity from $200 million to $250 million. In 2014, the interest rate was LIBOR plus 112.5 basis points on the $150 million of borrowings and 12.5 basis points on the undrawn portions of the credit facility. |
Notes_Payable_Schedule_of_Matu
Notes Payable (Schedule of Maturities of Debt) (Details) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Notes Payable [Abstract] | |
2015 | $0 |
2016 | 0 |
2017 | 140,000 |
2018 | 0 |
2019 | $150,000 |
Derivative_Financial_Instrumen2
Derivative Financial Instruments (Narrative) (Details) (USD $) | 0 Months Ended | 12 Months Ended | 0 Months Ended | ||||
Feb. 06, 2009 | Dec. 31, 2013 | Aug. 10, 2014 | Dec. 31, 2014 | Aug. 09, 2013 | Feb. 13, 2014 | Feb. 13, 2015 | |
Derivative Financial Instruments [Line Items] | |||||||
Secured loan | 20,000,000 | $20,000,000 | |||||
AFL [Member] | |||||||
Derivative Financial Instruments [Line Items] | |||||||
Notional amount | 144,000,000 | ||||||
FFL [Member] | |||||||
Derivative Financial Instruments [Line Items] | |||||||
Notional amount | 114,000,000 | ||||||
Interest Rate Swap [Member] | Credit Facility [Member] | |||||||
Derivative Financial Instruments [Line Items] | |||||||
Secured loan | 120,000,000 | ||||||
Fixed rate | 1.93% | ||||||
Maturity date of senior notes | 3-Jan-12 | ||||||
Swap [Member] | AFL [Member] | |||||||
Derivative Financial Instruments [Line Items] | |||||||
Term of swap agreement | 3 years | ||||||
Notional amount | 144,000,000 | ||||||
Swap agreement collateral | 40,000,000 | ||||||
Swap [Member] | FFL [Member] | |||||||
Derivative Financial Instruments [Line Items] | |||||||
Term of swap agreement | 3 years | ||||||
Notional amount | 114,000,000 | ||||||
Swap agreement collateral | $30,000,000 | ||||||
LIBOR [Member] | Swap [Member] | AFL [Member] | |||||||
Derivative Financial Instruments [Line Items] | |||||||
Basis spread on variable rate | 1.20% | ||||||
LIBOR [Member] | Swap [Member] | FFL [Member] | |||||||
Derivative Financial Instruments [Line Items] | |||||||
Basis spread on variable rate | 1.40% | ||||||
Scenario, Forecast [Member] | LIBOR [Member] | Swap [Member] | FFL [Member] | |||||||
Derivative Financial Instruments [Line Items] | |||||||
Basis spread on variable rate | 1.35% |
Derivative_Financial_Instrumen3
Derivative Financial Instruments (Summary Of Location And Amounts Of Derivative Fair Values In The Consolidated Balance Sheets) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Derivative Financial Instruments [Line Items] | ||
Asset Derivatives | $0 | $1,650 |
Liability Derivatives | -4,219 | -140 |
Non-hedging derivatives [Member] | Interest rate swap agreements [Member] | Other Assets [Member] | ||
Derivative Financial Instruments [Line Items] | ||
Asset Derivatives | 0 | 1,650 |
Liability Derivatives | 0 | 0 |
Non-hedging derivatives [Member] | Interest rate swap agreements [Member] | Other liabilities [Member] | ||
Derivative Financial Instruments [Line Items] | ||
Asset Derivatives | 0 | 0 |
Liability Derivatives | -4,025 | 0 |
Non-hedging derivatives [Member] | Equity contracts [Member] | Other liabilities [Member] | ||
Derivative Financial Instruments [Line Items] | ||
Asset Derivatives | 0 | 0 |
Liability Derivatives | ($194) | ($140) |
Derivative_Financial_Instrumen4
Derivative Financial Instruments (Schedule Of Derivative Gains And Losses In The Consolidated Statements Of Operations) (Details) (Derivatives Not Designated as Hedging Instruments [Member], USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Derivative Financial Instruments [Line Items] | |||
(Losses) Gains Recognized in Income | $450 | $4,055 | $3,247 |
Total Return Swap [Member] | Net realized investment gains [Member] | |||
Derivative Financial Instruments [Line Items] | |||
(Losses) Gains Recognized in Income | -2,969 | 2,176 | 0 |
Interest rate swap agreements [Member] | Other revenue (expense) [Member] | |||
Derivative Financial Instruments [Line Items] | |||
(Losses) Gains Recognized in Income | 0 | 103 | 567 |
Equity contracts [Member] | Net realized investment gains [Member] | |||
Derivative Financial Instruments [Line Items] | |||
(Losses) Gains Recognized in Income | $3,419 | $1,776 | $2,680 |
Goodwill_and_Other_Intangible_2
Goodwill and Other Intangible Assets (Narrative) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Goodwill impairment loss | $0 | $0 | |
Intangible assets amortization expense | $6,000,000 | $6,000,000 | $6,200,000 |
Goodwill_and_Other_Intangible_3
Goodwill and Other Intangible Assets (Schedule Of Components Of Other Intangible Assets) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2014 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $73,180 | $73,180 |
Accumulated Amortization | -31,577 | -37,557 |
Net Carrying Amount | 41,603 | 35,623 |
Customer relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 51,755 | 51,755 |
Accumulated Amortization | -24,494 | -29,402 |
Net Carrying Amount | 27,261 | 22,353 |
Useful Lives (in years) | 11 years | |
Trade names [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 15,400 | 15,400 |
Accumulated Amortization | -3,208 | -3,850 |
Net Carrying Amount | 12,192 | 11,550 |
Useful Lives (in years) | 24 years | |
Technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 4,300 | 4,300 |
Accumulated Amortization | -2,150 | -2,580 |
Net Carrying Amount | 2,150 | 1,720 |
Useful Lives (in years) | 10 years | |
Favorable leases [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 1,725 | 1,725 |
Accumulated Amortization | -1,725 | -1,725 |
Net Carrying Amount | $0 | $0 |
Useful Lives (in years) | 3 years |
Goodwill_and_Other_Intangible_4
Goodwill and Other Intangible Assets (Schedule Of Estimated Future Amortization Expense Related To Intangible Assets) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2015 | $5,980 | |
2016 | 5,980 | |
2017 | 5,253 | |
2018 | 5,239 | |
2019 | 4,809 | |
Thereafter | 8,362 | |
Net Carrying Amount | $35,623 | $41,603 |
Income_Taxes_Narrative_Details
Income Taxes (Narrative) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Components of Income Tax Expense (Benefit), Continuing Operations [Abstract] | |||
Federal statutory rate | 35.00% | ||
AMT credit carryforward balance | $31,200,000 | $39,200,000 | |
Net increase of unrecognized tax benefits | 1,800,000 | ||
Unrecognized tax benefits | 12,612,000 | 10,784,000 | 5,926,000 |
Unrecognized tax benefits that would impact effective tax rate | 11,100,000 | 8,400,000 | |
Interest and penalty expense, excluding refunds | 739,000 | 1,119,000 | 111,000 |
Accrued interest and penalty | $2,803,000 | $2,065,000 |
Income_Taxes_Components_Of_Inc
Income Taxes (Components Of Income Tax Expense) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Federal | |||
Current | $44,469 | $30,266 | $9,340 |
Deferred | 20,444 | -14,970 | 6,238 |
Total | 64,913 | 15,296 | 15,578 |
State | |||
Current | 4,421 | 5,234 | 2,079 |
Deferred | 142 | -577 | 742 |
Total | 4,563 | 4,657 | 2,821 |
Total, Current | 48,890 | 35,500 | 11,419 |
Total, Deferred | 20,586 | -15,547 | 6,980 |
Income tax expense | $69,476 | $19,953 | $18,399 |
Income_Taxes_Reconciliation_Of
Income Taxes (Reconciliation Of Income Taxes) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Components of Income Tax Expense (Benefit), Continuing Operations [Abstract] | |||
Computed tax expense | $86,598 | $46,234 | $47,359 |
Tax-exempt interest income | -27,839 | -26,381 | -27,789 |
Dividends received deduction | -2,027 | -2,239 | -1,482 |
State tax expense | 3,872 | 4,944 | 1,918 |
Nondeductible expenses | 9,900 | 190 | 317 |
Other, net | -1,028 | -2,795 | -1,924 |
Income tax expense | $69,476 | $19,953 | $18,399 |
Income_Taxes_Deferred_Tax_Asse
Income Taxes (Deferred Tax Assets And Liabilities) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Deferred tax assets: | ||
20% of net unearned premium | $71,907 | $68,586 |
Discounting of loss reserves and salvage and subrogation recoverable for tax purposes | 11,100 | 12,810 |
Write-down of impaired investments | 942 | 1,714 |
Tax credit carryforward | 31,198 | 40,309 |
Expense accruals | 13,395 | 12,497 |
Other deferred tax assets | 7,448 | 5,653 |
Total gross deferred tax assets | 135,990 | 141,569 |
Deferred tax liabilities: | ||
Deferred acquisition costs | -69,021 | -68,063 |
Tax liability on net unrealized gain on securities carried at fair value | -47,333 | -33,964 |
Tax depreciation in excess of book depreciation | -9,414 | -9,667 |
Undistributed earnings of insurance subsidiaries | -4,486 | -4,024 |
Tax amortization in excess of book amortization | -1,982 | -1,447 |
Other deferred tax liabilities | -9,087 | -9,184 |
Total gross deferred tax liabilities | -141,323 | -126,349 |
Net deferred tax (liabilities) assets | ($5,333) | $15,220 |
Income_Taxes_Summary_Of_Unreco
Income Taxes (Summary Of Unrecognized Tax Benefits) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Reconciliation of Unrecognized Tax Benefits [Roll Forward] | ||
Balance at January 1 | $10,784 | $5,926 |
Additions based on tax positions related to the current year | 2,277 | 1,225 |
Additions based on tax positions related to prior years | -258 | -3,633 |
Additions (reductions) as a result of lapse of the applicable statute of limitations | -191 | 0 |
Balance at December 31 | $12,612 | $10,784 |
Losses_And_Loss_Adjustment_Exp2
Losses And Loss Adjustment Expenses (Narrative) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Extraordinary Item [Line Items] | |||
Decrease in provision for insured events | $3,000,000 | ||
Liability for Unpaid Claims and Claims Adjustment Expense, Incurred Claims, Prior Years | 3,193,000 | 2,960,000 | 42,332,000 |
Increase in provision for insured events | 42,000,000 | ||
Catastrophe [Member] | |||
Extraordinary Item [Line Items] | |||
Pre-tax catastrophe losses | $11,000,000 | $17,000,000 | $39,000,000 |
Losses_And_Loss_Adjustment_Exp3
Losses And Loss Adjustment Expenses (Activity In The Reserves For Losses And Loss Adjustment Expenses) (Details) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Insurance Loss Reserves [Abstract] | ||||
Gross reserves at January 1 | $1,038,984 | $1,036,123 | $985,279 | |
Less reinsurance recoverable | -14,484 | -13,927 | -12,155 | -7,921 |
Net reserves at January 1 | 1,025,057 | 1,023,968 | 977,358 | |
Incurred losses and loss adjustment expense related to: | ||||
Current year | 1,989,315 | 1,959,730 | 1,919,116 | |
Prior years | -3,193 | -2,960 | -42,332 | |
Total incurred losses and loss adjustment expenses | 1,986,122 | 1,962,690 | 1,961,448 | |
Loss and loss adjustment expense payments related to: | ||||
Current year | 1,347,967 | 1,354,074 | 1,314,748 | |
Prior years | 585,899 | 607,527 | 600,090 | |
Total payments | 1,933,866 | 1,961,601 | 1,914,838 | |
Net reserves at year-end | 1,077,313 | 1,025,057 | 1,023,968 | |
Reinsurance recoverable | 14,484 | 13,927 | 12,155 | 7,921 |
Gross reserves at year-end | $1,091,797 | $1,038,984 | $1,036,123 |
Dividends_Dividends_Paid_In_To
Dividends (Dividends Paid In Total And Per Share) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Dividends [Abstract] | |||
Total paid | $135,496,000 | $134,776,000 | $134,105,000 |
Per share (in dollars per share) | $2.46 | $2.45 | $2.44 |
Maximum dividend payable without prior permission of DOI of states domicile | 177,000,000 | ||
Payments of ordinary dividends | $225,000,000 | $120,000,000 | $145,000,000 |
Dividends_Dividends_Dividends_
Dividends Dividends (Dividends Declared) (Details) (Subsequent Event [Member], USD $) | 0 Months Ended |
Feb. 06, 2015 | |
Subsequent Event [Member] | |
Subsequent Event [Line Items] | |
Quarterly dividend declared (in dollars per share) | $0.62 |
Statutory_Balances_and_Account2
Statutory Balances and Accounting Practices (Schedule Of Statutory Net Income And Capital And Surplus) (Details) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Statutory Accounting Practices [Line Items] | ||||||
Statutory net income | $155,654 | [1] | $235,251 | [1] | $63,365 | [1] |
Statutory capital and surplus | $1,438,281 | $1,528,682 | $1,440,973 | |||
RBC authorized control level | 800.00% | 500.00% | 500.00% | |||
Minimum RBC authorized control level | 200.00% | 200.00% | 200.00% | |||
CAIC [Member] | ||||||
Statutory Accounting Practices [Line Items] | ||||||
RBC authorized control level | 386.00% | 520.00% | ||||
[1] | Statutory net income excludes changes in the fair value of the investment portfolio as a result of the application of the fair value option under GAAP, and reflects the impacts of other differences from GAAP. |
Profit_Sharing_Plan_Details
Profit Sharing Plan (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Deferred Compensation Arrangements [Abstract] | |||
Maximum percentage of compensation employee is allowed to contribute | 15.00% | ||
Matching contributions | $8 | $8.10 | $7.20 |
Deferred Compensation Arrangement with Individual, Cash Award Granted, Amount | $19.20 | $0 | $10 |
ShareBased_Compensation_Narrat
Share-Based Compensation (Narrative) (Details) (USD $) | 12 Months Ended | 0 Months Ended | 12 Months Ended | |||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jan. 01, 2008 | Dec. 31, 2007 | 31-May-05 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 0 | |||||
Number of shares granted | 0 | 0 | ||||
Intrinsic value of stock options exercised | $1,160 | $862 | $392 | |||
Total fair value of stock options vested | 142 | 146 | 407 | |||
2005 Plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Common stock authorized for issuance | 4,920,750 | |||||
Percentage of stock option exercisable per year | 25.00% | 20.00% | ||||
Stock option expiration period (in years) | 10 years | |||||
Stock Options [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Unrecognized compensation cost | $344 | |||||
Weighted-average period of recognition, in years | 2 years 4 months 24 days | |||||
Restricted Stock And Restricted Stock Unit [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share Based Compensation Arrangement By Share-Based Payment Award, Non-option Equity Instruments, Forfeitures Due To Employee Termination | 7,000 | 4,000 | 11,500 |
ShareBased_Compensation_Shareb
Share-Based Compensation (Share-based Compensation Expense) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Cash received from option exercises | $6,247 | $1,446 | $2,492 |
Share-based compensation expense | -4,112 | -974 | -370 |
Tax benefit on sales of incentive stock options | 148 | 202 | 86 |
Common Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | -142 | -125 | -168 |
Tax benefit on sales of incentive stock options | $148 | $202 | $86 |
ShareBased_Compensation_Stock_
Share-Based Compensation (Stock Option Valuation Assumptions) (Details) (Stock Options [Member], USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Weighted-average grant-date fair value | $7.11 |
Weighted-average expected volatility | 33.17% |
Expected term | 72 months |
Minimum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected volatility | 33.16% |
Risk-free interest rate | 0.88% |
Expected dividend yield | 5.40% |
Maximum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected volatility | 33.18% |
Risk-free interest rate | 1.60% |
Expected dividend yield | 5.76% |
ShareBased_Compensation_Summar
Share-Based Compensation (Summary Of Stock Option Activity) (Details) (USD $) | 12 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Outstanding Shares, Beginning balance | 433,750 | |
Granted, Shares | 0 | 0 |
Exercised, Shares | -155,050 | |
Cancelled or expired, Shares | -30,700 | |
Outstanding Shares, Ending balance | 248,000 | |
Exercisable, Shares | 188,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | ||
Outstanding, Weighted-Average Exercise Price, Beginning balance (in dollars per share) | $49.11 | |
Granted, Weighted-Average Exercise Price (in dollars per share) | ||
Exercised, Weighted-Average Exercise Price (in dollars per share) | $46.34 | |
Canceled or Expired, Weighted-Average Exercise Price (in dollars per share) | $57.10 | |
Outstanding, Weighted-Average Exercise Price, Ending balance (in dollars per share) | $49.85 | |
Exercisable, Weighted-Average Exercise Price (in dollars per share) | $51.86 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||
Outstanding, Weighted-Average Remaining Contractual Term (Years) | 3 years 8 months 12 days | |
Exercisable, Weighted-Average Remaining Contractual Term (Years) | 2 years 2 months 12 days | |
Outstanding, Aggregate Intrinsic Value | $1,774 | |
Exercisable, Aggregate Intrinsic Value | $985 |
ShareBased_Compensation_Stock_1
Share-Based Compensation (Stock Option Awards) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Options Outstanding, Number of Options | 248,000 | 433,750 |
Options Outstanding, Weighted-Avg. Remaining Contractual Life (Years) | 3 years 8 months 12 days | |
Options Outstanding, Weighted-Avg. Exercise Price (in dollars per share) | $49.85 | $49.11 |
Options Exercisable, Number of Options | 188,000 | |
Options Exercisable, Weighted-Avg. Exercise Price (in dollars per share) | $51.86 | |
$33.61-47.61 [Member] | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Options Outstanding, Number of Options | 105,500 | |
Options Outstanding, Weighted-Avg. Remaining Contractual Life (Years) | 6 years 6 months | |
Options Outstanding, Weighted-Avg. Exercise Price (in dollars per share) | $43.67 | |
Options Exercisable, Number of Options | 45,500 | |
Options Exercisable, Weighted-Avg. Exercise Price (in dollars per share) | $43.86 | |
Range of Exercise Prices, lower limit (in dollars per share) | $33.61 | |
Range of Exercise Prices, upper limit (in dollars per share) | $47.61 | |
$50.01-52.13 [Member] | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Options Outstanding, Number of Options | 63,500 | |
Options Outstanding, Weighted-Avg. Remaining Contractual Life (Years) | 2 years 2 months 12 days | |
Options Outstanding, Weighted-Avg. Exercise Price (in dollars per share) | $51.03 | |
Options Exercisable, Number of Options | 63,500 | |
Options Exercisable, Weighted-Avg. Exercise Price (in dollars per share) | $51.03 | |
Range of Exercise Prices, lower limit (in dollars per share) | $50.01 | |
Range of Exercise Prices, upper limit (in dollars per share) | $52.13 | |
$54.93-58.83 [Member] | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Options Outstanding, Number of Options | 79,000 | |
Options Outstanding, Weighted-Avg. Remaining Contractual Life (Years) | 1 year 3 months 18 days | |
Options Outstanding, Weighted-Avg. Exercise Price (in dollars per share) | $57.14 | |
Options Exercisable, Number of Options | 79,000 | |
Options Exercisable, Weighted-Avg. Exercise Price (in dollars per share) | $57.14 | |
Range of Exercise Prices, lower limit (in dollars per share) | $54.93 | |
Range of Exercise Prices, upper limit (in dollars per share) | $58.83 |
Recovered_Sheet1
Share-Based Compensation Share-Based Compensation (Summary of Grants) (Details) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Share-based Compensation [Abstract] | |||
Performance Vesting Restricted Stock Units, Three-Year Performance Period Ending, Years | 2016 | 2015 | 2014 |
Granted, Shares | 86,500 | 80,500 | 80,500 |
Performance Vesting Restricted Stock Units, Vesting Shares, Maximum | 162,188 | 181,125 | 181,125 |
ShareBased_Compensation_Summar1
Share-Based Compensation (Summary Of Vested And Unvested RSU) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Granted, Shares | 86,500 | 80,500 | 80,500 |
Restricted Stock And Restricted Stock Unit [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Outstanding Shares, Balance | 170,500 | 169,000 | 135,000 |
Granted, Shares | 93,500 | 84,500 | 92,000 |
Vested, Shares | 0 | 0 | 0 |
Forfeited/Canceled | 16,500 | 3,000 | 3,000 |
Expired, Shares | -80,500 | -80,000 | -55,000 |
Outstanding Shares, Balance | 167,000 | 170,500 | 169,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |||
Outstanding, Weighted-Average Fair Value per Share (in dollars per share) | 39.64 | 42.22 | 40.7 |
Granted, Weighted-Average Fair Value per Share (in dollars per share) | 45.17 | 36.82 | 44.01 |
Forfeited/Canceled, Weighted-Average Fair Value per Share (in dollars per share) | 43.99 | 36.82 | 44.01 |
Expired, Weighted-Average Fair Value per Share (in dollars per share) | 44.01 | 40.22 | 41.4 |
Outstanding, Weighted-Average Fair Value per Share (in dollars per share) | 41.15 | 39.64 | 42.22 |
Earnings_Per_Share_Details
Earnings Per Share (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||||
Earnings Per Share [Line Items] | ||||||||||||||||
Income available to common stockholders, Basic | $177,949 | $112,143 | $116,911 | |||||||||||||
Effect of dilutive securities: Options | 0 | 0 | 0 | |||||||||||||
Income available to common stockholders after assumed conversions, Diluted | $177,949 | $112,143 | $116,911 | |||||||||||||
Weighted Shares, Basic | 55,008 | 54,947 | 54,899 | |||||||||||||
Effect of dilutive securities: Options | 12 | 17 | 23 | |||||||||||||
Weighted Shares, Diluted | 55,020 | 54,964 | 54,922 | |||||||||||||
Per-Share Amount, Basic | ($0.38) | [1] | $0.57 | [1] | $1.73 | [1] | $1.32 | [1] | $0.28 | $0.72 | ($0.17) | $1.21 | $3.23 | $2.04 | $2.13 | |
Per-Share Amount, Diluted | ($0.38) | [1],[2] | $0.57 | [1] | $1.73 | [1] | $1.32 | [1] | $0.28 | $0.72 | ($0.17) | [2] | $1.21 | $3.23 | $2.04 | $2.13 |
Potentially dilutive securities (in shares) | 273 | 421 | 415 | |||||||||||||
Common Stock [Member] | ||||||||||||||||
Earnings Per Share [Line Items] | ||||||||||||||||
Potentially dilutive securities (in shares) | 21 | 63 | 80 | |||||||||||||
[1] | The basic and diluted earnings per share do not sum due to rounding. | |||||||||||||||
[2] | The dilutive impact of incremental shares is excluded from net loss position in accordance with GAAP. |
Commitments_and_Contingencies_1
Commitments and Contingencies (Narrative) (Details) (USD $) | 0 Months Ended | 1 Months Ended | 12 Months Ended | ||
Dec. 08, 2014 | Apr. 30, 2010 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
instance_of_noncompliance | |||||
Commitments and Contingencies Disclosure [Abstract] | |||||
Deferred rent | $3,000,000 | $3,400,000 | |||
Total rent expense | 14,600,000 | 19,300,000 | 17,700,000 | ||
Exposure to earthquake loss | 62,500,000 | ||||
Number of instances of non-compliance issued from regulatory body | 35 | ||||
Settlement of fine and penalty levied by California DOI | $27,593,550 |
Commitments_and_Contingencies_2
Commitments and Contingencies (Future Minimum Commitments For Operating Leases) (Details) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Commitments and Contingencies Disclosure [Abstract] | |
2015 | $14,179 |
2016 | 12,752 |
2017 | 8,870 |
2018 | 3,701 |
2019 | 514 |
Thereafter | $26 |
Quarterly_Financial_Informatio2
Quarterly Financial Information (Summary Of Quarterly Financial Information) (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||||
Quarterly Financial Data [Abstract] | ||||||||||||||||
Net premiums earned | $709,368 | $705,237 | $697,889 | $683,701 | $680,892 | $678,913 | $675,787 | $662,595 | $2,796,195 | $2,698,187 | $2,574,920 | |||||
Change in fair value of investments pursuant to the fair value option | -22,824 | -20,528 | 41,412 | 45,699 | -30,593 | 21,815 | -78,726 | 43,467 | 43,759 | -44,037 | 45,509 | |||||
Income (loss) before income taxes | -28,161 | 37,120 | 136,436 | 102,030 | 11,268 | 54,793 | -24,959 | 90,994 | 247,425 | 132,096 | 135,310 | |||||
Net income | ($20,956) | $31,296 | $94,960 | $72,649 | $15,376 | $39,570 | ($9,264) | $66,461 | $177,949 | $112,143 | $116,911 | |||||
Basic (in dollars per share) | ($0.38) | [1] | $0.57 | [1] | $1.73 | [1] | $1.32 | [1] | $0.28 | $0.72 | ($0.17) | $1.21 | $3.23 | $2.04 | $2.13 | |
Diluted (in dollars per share) | ($0.38) | [1],[2] | $0.57 | [1] | $1.73 | [1] | $1.32 | [1] | $0.28 | $0.72 | ($0.17) | [2] | $1.21 | $3.23 | $2.04 | $2.13 |
Dividends paid per share | $0.62 | $0.62 | $0.62 | $0.62 | $0.62 | $0.61 | $0.61 | $0.61 | $0.62 | $0.62 | ||||||
[1] | The basic and diluted earnings per share do not sum due to rounding. | |||||||||||||||
[2] | The dilutive impact of incremental shares is excluded from net loss position in accordance with GAAP. |
Quarterly_Financial_Informatio3
Quarterly Financial Information (Narrative) (Details) (USD $) | 0 Months Ended | 3 Months Ended |
Dec. 08, 2014 | Mar. 31, 2013 | |
Restructuring Cost and Reserve | ||
Settlement of fine and penalty levied by California DOI | $27,593,550 | |
Employee Severance [Member] | ||
Restructuring Cost and Reserve | ||
Workforce reduction, office closure and severance expense | $10,000,000 |
Subsequent_Event_Details
Subsequent Event (Details) (Workmen's Auto Insurance Company [Member], USD $) | 9 Months Ended | 0 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Jan. 12, 2015 | Jan. 02, 2015 |
Subsequent Event [Line Items] | ||||
Statutory surplus amount | $7.80 | |||
Net premiums earned | 22.4 | 34.3 | ||
Subsequent Event [Member] | ||||
Subsequent Event [Line Items] | ||||
Consideration paid in cash | 8 | |||
Amount held in escrow | 2 | |||
Term for escrow security payment | 2 years | |||
Capital contribution amount | $15 |
Summary_Of_Investments_Other_T1
Summary Of Investments Other Than Investments In Related Parties (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost | $3,264,525 | $3,062,861 |
Fair value | 3,403,822 | 3,158,312 |
Amounts in the balance sheet | 3,403,822 | 3,158,312 |
Fixed Maturity Securities [Member] | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost | 2,503,494 | 2,523,042 |
Fair value | 2,618,400 | 2,560,653 |
Amounts in the balance sheet | 2,618,400 | 2,560,653 |
Fixed Maturity Securities [Member] | U.S. Government Bonds And Agencies [Member] | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost | 16,028 | 15,994 |
Fair value | 16,108 | 16,096 |
Amounts in the balance sheet | 16,108 | 16,096 |
Fixed Maturity Securities [Member] | Municipal Securities [Member] | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost | 2,160,710 | 2,201,047 |
Fair value | 2,275,455 | 2,235,323 |
Amounts in the balance sheet | 2,275,455 | 2,235,323 |
Fixed Maturity Securities [Member] | Mortgage-Backed Securities [Member] | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost | 45,519 | 37,848 |
Fair value | 47,691 | 40,247 |
Amounts in the balance sheet | 47,691 | 40,247 |
Fixed Maturity Securities [Member] | Corporate Securities [Member] | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost | 258,940 | 264,172 |
Fair value | 256,930 | 264,685 |
Amounts in the balance sheet | 256,930 | 264,685 |
Fixed Maturity Securities [Member] | Collateralized Debt Obligations [Member] | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost | 22,297 | 3,981 |
Fair value | 22,216 | 4,302 |
Amounts in the balance sheet | 22,216 | 4,302 |
Equity Securities [Member] | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost | 387,851 | 223,933 |
Fair value | 412,880 | 281,883 |
Amounts in the balance sheet | 412,880 | 281,883 |
Equity Securities [Member] | Non-Redeemable Preferred Stock [Member] | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost | 28,012 | 29,740 |
Fair value | 28,563 | 29,567 |
Amounts in the balance sheet | 28,563 | 29,567 |
Equity Securities [Member] | Partnership Interest in a Private Credit Fund [Member] | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost | 10,000 | 10,000 |
Fair value | 11,719 | 12,548 |
Amounts in the balance sheet | 11,719 | 12,548 |
Equity Securities [Member] | Public Utilities [Member] | Common Stock [Member] | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost | 96,482 | 81,128 |
Fair value | 105,485 | 85,287 |
Amounts in the balance sheet | 105,485 | 85,287 |
Equity Securities [Member] | Banks, Trust, And Insurance Companies [Member] | Common Stock [Member] | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost | 7,701 | 1,610 |
Fair value | 9,757 | 2,927 |
Amounts in the balance sheet | 9,757 | 2,927 |
Equity Securities [Member] | Energy and Other [Member] | Common Stock [Member] | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost | 245,656 | 101,455 |
Fair value | 257,356 | 151,554 |
Amounts in the balance sheet | 257,356 | 151,554 |
Short-Term Investments [Member] | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost | 373,180 | 315,886 |
Fair value | 372,542 | 315,776 |
Amounts in the balance sheet | $372,542 | $315,776 |
Condensed_Financial_Informatio1
Condensed Financial Information of Registrant (Schedule Of Condensed Financial Information Of Registrant, Balance Sheets) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
Investments, at fair value: | ||||
Equity securities (cost $189,032; $27,449) | $412,880 | $281,883 | ||
Short-term investments (cost $9,744; $11,089) | 372,542 | 315,776 | ||
Total investments | 3,403,822 | 3,158,312 | ||
Cash | 289,907 | 266,508 | 158,183 | 211,393 |
Accrued investment income | 38,737 | 36,120 | ||
Current income taxes | 503 | 0 | ||
Deferred income taxes | 0 | 15,220 | ||
Other assets | 21,512 | 14,336 | ||
Total assets | 4,600,289 | 4,315,181 | ||
Liabilities: | ||||
Notes payable | 290,000 | 190,000 | ||
Accounts payable and accrued expenses | 130,887 | 127,663 | ||
Current income taxes | 0 | 11,856 | ||
Deferred income taxes | 5,333 | 0 | ||
Other liabilities | 207,028 | 170,665 | ||
Total liabilities | 2,724,843 | 2,492,695 | ||
Shareholders’ equity: | ||||
Common stock | 88,705 | 81,591 | ||
Additional paid-in capital | 3,804 | 411 | ||
Retained earnings | 1,782,937 | 1,740,484 | ||
Total shareholders’ equity | 1,875,446 | 1,822,486 | 1,842,497 | |
Total liabilities and shareholders’ equity | 4,600,289 | 4,315,181 | ||
Parent Company [Member] | ||||
Investments, at fair value: | ||||
Equity securities (cost $189,032; $27,449) | 182,300 | 29,737 | ||
Short-term investments (cost $9,744; $11,089) | 9,744 | 11,089 | ||
Investment in subsidiaries | 1,783,049 | 1,794,164 | ||
Total investments | 1,975,093 | 1,834,990 | ||
Cash | 52,326 | 46,332 | 10,199 | 29,219 |
Accrued investment income | 158 | 16 | ||
Amounts receivable from affiliates | 1,181 | 206 | ||
Current income taxes | 239 | 0 | ||
Deferred income taxes | 6,975 | 1,068 | ||
Income tax receivable from affiliates | 3,482 | 11,573 | ||
Other assets | 1,095 | 459 | ||
Total assets | 2,040,549 | 1,894,644 | ||
Liabilities: | ||||
Notes payable | 150,000 | 50,000 | ||
Accounts payable and accrued expenses | 0 | 23 | ||
Amounts payable to affiliates | 97 | 34 | ||
Income tax payable to affiliates | 14,728 | 6,730 | ||
Current income taxes | 0 | 12,672 | ||
Other liabilities | 278 | 2,699 | ||
Total liabilities | 165,103 | 72,158 | ||
Shareholders’ equity: | ||||
Common stock | 88,705 | 81,591 | ||
Additional paid-in capital | 3,804 | 411 | ||
Retained earnings | 1,782,937 | 1,740,484 | ||
Total shareholders’ equity | 1,875,446 | 1,822,486 | ||
Total liabilities and shareholders’ equity | 2,040,549 | 1,894,644 | ||
Equity securities trading - cost | 189,032 | 27,499 | ||
Short-term investments - cost | $9,744 | $11,089 |
Condensed_Financial_Informatio2
Condensed Financial Information of Registrant (Schedule Of Condensed Financial Information Of Registrant, Statements Of Operations) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenues: | |||||||||||
Net investment income | $125,723 | $124,538 | $131,896 | ||||||||
Net realized investment gains (losses) | 81,184 | -11,422 | 66,380 | ||||||||
Total revenues | -3,011,773 | -2,821,041 | -2,783,370 | ||||||||
Expenses: | |||||||||||
Other operating expenses | 249,381 | 219,478 | 207,281 | ||||||||
Other operating expenses | 2,637 | 1,260 | 1,543 | ||||||||
Total expenses | 2,764,348 | 2,688,945 | 2,648,060 | ||||||||
Income before income taxes | 28,161 | -37,120 | -136,436 | -102,030 | -11,268 | -54,793 | 24,959 | -90,994 | -247,425 | -132,096 | -135,310 |
Income tax (benefit) expense | 69,476 | 19,953 | 18,399 | ||||||||
Net income | -20,956 | 31,296 | 94,960 | 72,649 | 15,376 | 39,570 | -9,264 | 66,461 | 177,949 | 112,143 | 116,911 |
Parent Company [Member] | |||||||||||
Revenues: | |||||||||||
Net investment income | 4,478 | 1,293 | 1,114 | ||||||||
Net realized investment gains (losses) | -9,428 | 3,416 | 697 | ||||||||
Total revenues | -4,950 | -4,709 | -1,811 | ||||||||
Expenses: | |||||||||||
Other operating expenses | 5,971 | 2,924 | 1,688 | ||||||||
Other operating expenses | 1,746 | 318 | 0 | ||||||||
Total expenses | 7,717 | 3,242 | 1,688 | ||||||||
Income before income taxes | -12,667 | -1,467 | -123 | ||||||||
Income tax (benefit) expense | -100 | 3,310 | 1,800 | ||||||||
Loss before equity in net income of subsidiaries | -12,567 | -1,843 | -1,677 | ||||||||
Equity in net income of subsidiaries | 190,516 | 113,986 | 118,588 | ||||||||
Net income | $177,949 | $112,143 | $116,911 |
Condensed_Financial_Informatio3
Condensed Financial Information of Registrant (Schedule Of Condensed Financial Information Of Registrant, Statements Of Comprehensive Income) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Net income | ($20,956) | $31,296 | $94,960 | $72,649 | $15,376 | $39,570 | ($9,264) | $66,461 | $177,949 | $112,143 | $116,911 |
Other comprehensive income, before tax: | |||||||||||
Gains on hedging instrument | 0 | 0 | 0 | ||||||||
Other comprehensive income, before tax | 0 | 0 | 0 | ||||||||
Income tax expense related to gains on hedging instrument | 0 | 0 | 0 | ||||||||
Other comprehensive income, net of tax: | 0 | 0 | 0 | ||||||||
Comprehensive income | 177,949 | 112,143 | 116,911 | ||||||||
Parent Company [Member] | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Net income | 177,949 | 112,143 | 116,911 | ||||||||
Other comprehensive income, before tax: | |||||||||||
Gains on hedging instrument | 0 | 0 | 0 | ||||||||
Other comprehensive income, before tax | 0 | 0 | 0 | ||||||||
Income tax expense related to gains on hedging instrument | 0 | 0 | 0 | ||||||||
Other comprehensive income, net of tax: | 0 | 0 | 0 | ||||||||
Comprehensive income | $177,949 | $112,143 | $116,911 |
Condensed_Financial_Informatio4
Condensed Financial Information of Registrant (Schedule Of Condensed Financial Information Of Registrant, Statements Of Cash Flow) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash flows from operating activities: | |||
Net cash used in operating activities | $246,535 | $209,804 | $148,062 |
Equity securities: | |||
Purchases | -542,494 | -831,796 | -590,562 |
Sales | 745,058 | 872,997 | 277,272 |
(Decrease) increase in payable for securities, net | 9,294 | 1,702 | 1,919 |
Other, net | 3,472 | 1,741 | 2,255 |
Net cash used in investing activities | -194,035 | -18,351 | -69,745 |
Cash flows from financing activities: | |||
Dividends paid to shareholders | -135,496 | -134,776 | -134,105 |
Excess tax benefit from exercise of stock options | 148 | 202 | 86 |
Proceeds from stock options exercised | 6,247 | 1,446 | 2,492 |
Proceeds from bank loan | 100,000 | 50,000 | 0 |
Net cash used in financing activities | -29,101 | -83,128 | -131,527 |
Net increase (decrease) in cash | 23,399 | 108,325 | -53,210 |
Cash: | |||
Beginning of year | 266,508 | 158,183 | 211,393 |
End of year | 289,907 | 266,508 | 158,183 |
SUPPLEMENTAL CASH FLOW DISCLOSURE | |||
Interest paid | 2,543 | 998 | 1,690 |
Income taxes paid (received) | 61,139 | 16,503 | 18,481 |
Parent Company [Member] | |||
Cash flows from operating activities: | |||
Net cash used in operating activities | -3,434 | -843 | -5,590 |
Cash flows from investing activities: | |||
Capital contribution to controlled entities | -30,125 | -40,125 | -125 |
Dividends from subsidiaries | 231,756 | 120,000 | 145,000 |
Equity securities: | |||
Purchases | -254,572 | -25,038 | -14,102 |
Sales | 90,422 | 25,798 | 7,308 |
(Decrease) increase in payable for securities, net | -2,489 | 2,489 | 0 |
Net decrease (increase) in short-term investments | -1,346 | -36,085 | -20,413 |
Other, net | 2,191 | 895 | 429 |
Net cash used in investing activities | 38,529 | 120,104 | 118,097 |
Cash flows from financing activities: | |||
Dividends paid to shareholders | -135,496 | -134,776 | -134,105 |
Excess tax benefit from exercise of stock options | 148 | 202 | 86 |
Proceeds from stock options exercised | 6,247 | 1,446 | 2,492 |
Proceeds from bank loan | 100,000 | 50,000 | 0 |
Net cash used in financing activities | -29,101 | -83,128 | -131,527 |
Net increase (decrease) in cash | 5,994 | 36,133 | -19,020 |
Cash: | |||
Beginning of year | 46,332 | 10,199 | 29,219 |
End of year | 52,326 | 46,332 | 10,199 |
SUPPLEMENTAL CASH FLOW DISCLOSURE | |||
Interest paid | 1,757 | 318 | 0 |
Income taxes paid (received) | $2,112 | ($827) | $4,667 |
Condensed_Financial_Informatio5
Condensed Financial Information of Registrant Condensed Financial Information of Registrant (Narratives) (Details) (USD $) | 0 Months Ended | 12 Months Ended | |||
Jul. 02, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 03, 2014 | |
Condensed Financial Statements, Captions [Line Items] | |||||
Proceeds from Dividends Received | $225,000,000 | $120,000,000 | $145,000,000 | ||
Capital contributions to subsidiaries | 125,000 | 125,000 | 125,000 | ||
Credit facility amount | 150,000,000 | ||||
Total borrowing guaranteed | 20,000,000 | 20,000,000 | |||
Loan maximum borrowing capacity | 200,000,000 | ||||
Revolving credit facility term | 5 years | ||||
Mcc [Member] | |||||
Condensed Financial Statements, Captions [Line Items] | |||||
Credit facility amount | 120,000,000 | ||||
Bank loan | 20,000,000 | ||||
Municipal bonds, fair value | 181,000,000 | ||||
Total borrowing guaranteed | 140,000,000 | ||||
Revolving Credit Facility [Member] | |||||
Condensed Financial Statements, Captions [Line Items] | |||||
Credit facility amount | 150,000,000 | ||||
Loan maximum borrowing capacity | $200,000,000 | $250,000,000 | |||
Revolving credit facility term | 5 years |
Supplemental_Reinsurance_Premi1
Supplemental Reinsurance Premiums (Schedule of Property and Liability Insurance Earned Premiums) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Supplementary Insurance Information [Abstract] | |||||||||||
Direct amounts | $2,806,889 | $2,704,401 | $2,578,715 | ||||||||
Ceded to other companies | -11,185 | -7,059 | -5,066 | ||||||||
Assumed | 491 | 845 | 1,271 | ||||||||
Net amounts | $709,368 | $705,237 | $697,889 | $683,701 | $680,892 | $678,913 | $675,787 | $662,595 | $2,796,195 | $2,698,187 | $2,574,920 |