Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Feb. 18, 2019 | Jun. 30, 2018 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2018 | ||
Entity Registrant Name | INVESTORS TITLE CO | ||
Entity Central Index Key | 0000720858 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 1,886,630 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Small Business | false | ||
Entity Public Float | $ 255,060,702 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Assets: | ||
Cash and cash equivalents | $ 18,694 | $ 20,214 |
Investments in securities: | ||
Fixed maturity securities, available-for-sale, at fair value (amortized cost: December 31, 2018: $87,714; December 31, 2017: $100,314) | 88,957 | 103,341 |
Equity securities, at fair value (cost: December 31, 2018: $31,255; December 31, 2017: $26,003) | 48,489 | 47,367 |
Short-term investments | 32,787 | 23,780 |
Other investments | 12,436 | 12,032 |
Total investments | 182,669 | 186,520 |
Premium and fees receivable | 12,128 | 10,031 |
Accrued interest and dividends | 946 | 1,100 |
Prepaid expenses and other receivables | 7,288 | 7,730 |
Property, net | 10,304 | 10,173 |
Goodwill and other intangible assets, net | 10,780 | 11,357 |
Other assets | 1,459 | 1,403 |
Current income taxes receivable | 0 | 385 |
Total Assets | 244,268 | 248,913 |
Liabilities: | ||
Reserve for claims | 31,729 | 34,801 |
Accounts payable and accrued liabilities | 27,735 | 27,565 |
Current income taxes payable | 4,981 | 0 |
Deferred income taxes, net | 4,184 | 8,626 |
Total liabilities | 68,629 | 70,992 |
Commitments and Contingencies | 0 | 0 |
Stockholders' Equity: | ||
Preferred stock (1,000 authorized shares; no shares issued) | 0 | 0 |
Common stock – no par value (10,000 authorized shares; 1,887 and 1,886 shares issued and outstanding as of December 31, 2018 and December 31, 2017, respectively, excluding in each period 292 shares of common stock held by the Company) | 0 | 0 |
Retained earnings | 174,690 | 161,891 |
Accumulated other comprehensive income | 949 | 15,945 |
Total stockholders’ equity attributable to the Company | 175,639 | 177,836 |
Noncontrolling interests | 0 | 85 |
Total stockholders’ equity | 175,639 | 177,921 |
Total Liabilities and Stockholders’ Equity | $ 244,268 | $ 248,913 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Thousands, $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Fixed maturities, available-for-sale, amortized cost | $ 87,714 | $ 100,314 |
Equity securities, cost | $ 31,255 | $ 26,003 |
Preferred stock, shares authorized | 1,000 | 1,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, no par value | ||
Common stock, shares authorized | 10,000 | 10,000 |
Common stock, shares issued | 1,887 | 1,886 |
Common stock, shares outstanding | 1,887 | 1,886 |
Common stock, held by Company's subsidiary | 292 | 292 |
Consolidated Statements Of Inco
Consolidated Statements Of Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenues: | |||
Net premiums written | $ 138,125 | $ 140,502 | $ 122,522 |
Escrow and other title-related fees | 7,096 | 6,892 | 2,532 |
Non-title services | 7,082 | 6,128 | 5,651 |
Interest and dividends | 4,619 | 4,445 | 4,684 |
Other investment income | 3,107 | 2,159 | 1,894 |
Net realized (loss) gain on investments | (110) | 1,041 | 768 |
Net unrealized loss on equity investments | (4,130) | 0 | 0 |
Other | 470 | 460 | 437 |
Total Revenues | 156,259 | 161,627 | 138,488 |
Operating Expenses: | |||
Commissions to agents | 65,775 | 68,643 | 63,643 |
(Benefit) provision for claims | (332) | 3,311 | 243 |
Personnel expenses | 43,552 | 39,937 | 31,479 |
Office and technology expenses | 8,813 | 8,172 | 6,446 |
Other expenses | 11,382 | 11,293 | 8,546 |
Total Operating Expenses | 129,190 | 131,356 | 110,357 |
Income before Income Taxes | 27,069 | 30,271 | 28,131 |
Provision for Income Taxes | 5,210 | 4,570 | 8,616 |
Net Income | 21,859 | 25,701 | 19,515 |
Net Loss Attributable to Noncontrolling Interests | 33 | 6 | 8 |
Net Income Attributable to the Company | $ 21,892 | $ 25,707 | $ 19,523 |
Basic Earnings per Common Share | $ 11.60 | $ 13.63 | $ 10.23 |
Weighted Average Shares Outstanding – Basic | 1,887 | 1,886 | 1,908 |
Diluted Earnings per Common Share | $ 11.54 | $ 13.56 | $ 10.19 |
Weighted Average Shares Outstanding – Diluted | 1,897 | 1,896 | 1,915 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 21,859 | $ 25,701 | $ 19,515 |
Other comprehensive (loss) income, before tax: | |||
Amortization of unrecognized loss | 0 | 9 | 9 |
Accumulated postretirement expense (benefit) obligation adjustment | 46 | 70 | (1) |
Unrealized (losses) gains on investments arising during the period | (1,900) | 7,478 | 1,146 |
Reclassification adjustment for sale of securities included in net income | 117 | (1,227) | (973) |
Reclassification adjustment for write-down of securities included in net income | 0 | 26 | 234 |
Other comprehensive (loss) income, before tax | (1,737) | 6,356 | 415 |
Income tax expense related to postretirement health benefits | 9 | 27 | 3 |
Income tax (benefit) expense related to unrealized (losses) gains on investments arising during the year | (401) | 2,556 | 388 |
Income tax expense (benefit) related to reclassification adjustment for sale of securities included in net income | 24 | (419) | (334) |
Income tax expense related to reclassification adjustment for write-down of securities included in net income | 0 | 8 | 80 |
Net income tax (benefit) expense on other comprehensive (loss) income | (368) | 2,172 | 137 |
Other comprehensive (loss) income | (1,369) | 4,184 | 278 |
Comprehensive Income | 20,490 | 29,885 | 19,793 |
Comprehensive loss attributable to noncontrolling interests | 33 | 6 | 8 |
Comprehensive Income Attributable to the Company | $ 20,523 | $ 29,891 | $ 19,801 |
Consolidated Statements Of Stoc
Consolidated Statements Of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock [Member] | Retained Earnings | Accumulated Other Comprehensive Income | Noncontrolling Interest [Member] |
Balance, beginning of year at Dec. 31, 2015 | $ 142,777 | $ 0 | $ 131,187 | $ 11,483 | $ 107 |
Balance, beginning of year, shares at Dec. 31, 2015 | 1,950 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income attributable to the Company | 19,523 | 19,523 | |||
Dividends | (1,370) | (1,370) | |||
Shares of common stock repurchased and retired (in shares) | (67) | ||||
Shares of common stock repurchased and retired | (6,220) | (6,220) | |||
Stock options and stock appreciation rights exercised (in shares) | 1 | ||||
Stock options and stock appreciation rights exercised | 0 | 0 | |||
Share-based compensation expense | 132 | 132 | |||
Amortization related to postretirement health benefits | 5 | 5 | |||
Net unrealized gain (loss) on investments | 273 | 273 | |||
Accumulated postretirement benefit obligation adjustment | 0 | ||||
Purchase of noncontrolling interest of subsidiary | (8) | (8) | |||
Net income (loss) attributable to noncontrolling interest | (8) | (8) | |||
Income tax benefit from share-based compensation | 32 | 32 | |||
Balance, end of year at Dec. 31, 2016 | 155,136 | $ 0 | 143,284 | 11,761 | 91 |
Balance, end of year, shares at Dec. 31, 2016 | 1,884 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income attributable to the Company | 25,707 | 25,707 | |||
Dividends | (7,073) | (7,073) | |||
Shares of common stock repurchased and retired (in shares) | (1) | ||||
Shares of common stock repurchased and retired | (246) | (246) | |||
Stock options and stock appreciation rights exercised (in shares) | 3 | ||||
Stock options and stock appreciation rights exercised | 0 | 0 | |||
Share-based compensation expense | 219 | 219 | |||
Amortization related to postretirement health benefits | 6 | 6 | |||
Net unrealized gain (loss) on investments | 4,132 | 4,132 | |||
Accumulated postretirement benefit obligation adjustment | 46 | 46 | |||
Net income (loss) attributable to noncontrolling interest | (6) | (6) | |||
Balance, end of year at Dec. 31, 2017 | 177,921 | $ 0 | 161,891 | 15,945 | 85 |
Balance, end of year, shares at Dec. 31, 2017 | 1,886 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income attributable to the Company | 21,892 | 21,892 | |||
Dividends | (23,017) | (23,017) | |||
Shares of common stock repurchased and retired (in shares) | 0 | ||||
Shares of common stock repurchased and retired | (29) | (29) | |||
Stock options and stock appreciation rights exercised (in shares) | 1 | ||||
Stock options and stock appreciation rights exercised | (1) | (1) | |||
Share-based compensation expense | 327 | 327 | |||
Cumulative-effect adjustment for adoption of new accounting standards | 0 | 13,627 | (13,627) | ||
Net unrealized gain (loss) on investments | (1,406) | (1,406) | |||
Accumulated postretirement benefit obligation adjustment | 37 | 37 | |||
Subsidiary return of capital | (52) | (52) | |||
Net income (loss) attributable to noncontrolling interest | (33) | (33) | |||
Balance, end of year at Dec. 31, 2018 | $ 175,639 | $ 0 | $ 174,690 | $ 949 | $ 0 |
Balance, end of year, shares at Dec. 31, 2018 | 1,887 |
Consolidated Statements Of St_2
Consolidated Statements Of Stockholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Stockholders' Equity [Abstract] | |||
Dividend declared per share | $ 12.20 | $ 3.75 | $ 0.72 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Operating Activities | |||
Net income | $ 21,859 | $ 25,701 | $ 19,515 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation | 1,657 | 1,435 | 1,307 |
Amortization of investments, net | 748 | 788 | 771 |
Amortization of other intangible assets, net | 577 | 917 | 214 |
Amortization related to postretirement benefits obligation | 0 | 9 | 9 |
Share-based compensation expense related to stock appreciation rights | 327 | 219 | 132 |
Net loss (gain) on disposals of property | 12 | (23) | (12) |
Net realized loss (gain) on securities | 117 | (1,201) | (739) |
Net realized gains on other investments | (7) | (22) | (29) |
Net realized loss on impairments of other assets and other investments | 0 | 182 | 0 |
Net unrealized loss on equity securities | 4,130 | 0 | 0 |
Net earnings from other investments | (1,913) | (1,673) | (1,750) |
(Benefit) provision for claims | (332) | 3,311 | 243 |
(Benefit) provision for deferred income taxes | (4,074) | (4,664) | 2,790 |
Changes in assets and liabilities: | |||
Increase in receivables | (2,097) | (1,505) | (261) |
Decrease in other assets | 540 | 388 | 2,631 |
Decrease (increase) in current income taxes receivable | 385 | (385) | 0 |
Increase (decrease) in accounts payable and accrued liabilities | 216 | 1,463 | (582) |
Increase (decrease) in current income taxes payable | 4,981 | (1,232) | 1,054 |
Payments of claims, net of recoveries | (2,740) | (3,815) | (2,726) |
Net cash provided by (used in) operating activities | 24,386 | 19,893 | 22,567 |
Investing Activities | |||
Purchases of fixed maturity securities | 0 | (18,420) | (15,737) |
Purchase of equity securities | (13,954) | (4,646) | (3,688) |
Purchases of short-term investments | (94,781) | (26,414) | (1,775) |
Purchases of other investments | (1,544) | (1,873) | (2,744) |
Investment in subsidiary | 0 | 0 | (9) |
Proceeds from sales and maturities of fixed maturity securities | 11,520 | 17,445 | 17,011 |
Proceeds from the sale of equity securities | 8,585 | 4,682 | 3,247 |
Proceeds from sales and maturities of short-term investments | 86,105 | 9,228 | 2,082 |
Proceeds from sales and distributions of other investments | 3,055 | 2,696 | 3,437 |
Proceeds from sales of other assets | 7 | 22 | 18 |
Purchase of subsidiary, net of cash received | 0 | (175) | (8,316) |
Purchases of property, equipment and software | (1,859) | (2,884) | (2,457) |
Proceeds from disposals of property | 59 | 51 | 92 |
Net cash provided by (used in) investing activities | (2,807) | (20,288) | (8,839) |
Financing Activities | |||
Repurchases of common stock | (29) | (246) | (6,220) |
Exercise of stock appreciation rights | (1) | 0 | 0 |
Proceeds from note payable | 0 | 0 | 6,000 |
Payments on note payable | 0 | 0 | (6,000) |
Distribution of equity for noncontrolling interest | (52) | 0 | 0 |
Dividends paid | (23,017) | (7,073) | (1,370) |
Net cash provided by (used in) financing activities | (23,099) | (7,319) | (7,590) |
Net Increase (Decrease) in Cash and Cash Equivalents | (1,520) | (7,714) | 6,138 |
Cash and Cash Equivalents, Beginning of Period | 20,214 | 27,928 | 21,790 |
Cash and Cash Equivalents, End of Period | 18,694 | 20,214 | 27,928 |
Cash Paid During the Year for: | |||
Income tax payments, net | 5,462 | 11,539 | 5,068 |
Non cash net unrealized loss (gain) on investments, net of deferred tax benefit (provision) of $377, $(2,145) and $(134) for December 31, 2018, 2017 and 2016, respectively | 1,406 | (4,132) | (273) |
Adjustments to postretirement benefits obligation, net of deferred tax (provision) benefit of $(9), $(24) and $0 for December 31, 2018, 2017 and 2016, respectively | (37) | (46) | 0 |
Changes in Financial Statement Amounts Related to Purchase of Subsidiaries, Net of Cash Received | |||
Goodwill and other intangibles acquired | 0 | (237) | (11,250) |
Title plant acquired (in prepaid expenses and other assets) | 0 | 0 | (690) |
Fixed assets acquired | 0 | 0 | (534) |
Prepaid and other assets acquired | 0 | 0 | (15) |
Accounts payable and accrued liabilities assumed | 0 | 62 | 1,684 |
Deferred income taxes | 0 | 0 | 2,489 |
Purchase of subsidiary, net of cash received | $ 0 | $ (175) | $ (8,316) |
Consolidated Statements Of Ca_2
Consolidated Statements Of Cash Flows (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Cash Flows [Abstract] | |||
Non cash net unrealized loss (gain) on investments, net of deferred tax benefit (provision) | $ 377 | $ (2,145) | $ (134) |
Adjustments to postretirement benefits obligation, net of deferred tax (provision) benefit | $ (9) | $ (24) | $ 0 |
Basis Of Presentation and Signi
Basis Of Presentation and Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis Of Presentation and Significant Accounting Policies | Basis of Presentation and Summary of Significant Accounting Policies Description of Business: Investors Title Company’s (the “Company”) primary business, and only reportable segment, is title insurance. The title insurance segment, through its two subsidiaries, Investors Title Insurance Company (“ITIC”) and National Investors Title Insurance Company (“NITIC”), is licensed to insure titles to residential, institutional, commercial and industrial properties. The Company issues title insurance policies primarily through approved attorneys from underwriting offices and through independent issuing agents in 23 states and the District of Columbia, primarily in the eastern half of the United States. The majority of the Company’s business is concentrated in North Carolina, Texas, South Carolina, Georgia and Virginia. Principles of Consolidation and Basis of Presentation: The accompanying Consolidated Financial Statements include the accounts and operations of Investors Title Company and its subsidiaries, and have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”). Earnings attributable to noncontrolling interests in majority-owned insurance agencies are recorded in the Consolidated Statements of Income. Noncontrolling interests representing the portion of equity not related to the Company's ownership interests are recorded in separate sections of the Consolidated Balance Sheets. All intercompany balances and transactions have been eliminated in consolidation. Reclassifications: Certain prior year amounts have been reclassified for consistency with the current period presentation. The primary change was the presentation of revenue and operating expenses. Revenue other than title premiums are now presented in more detail than previously provided. Presentation of operating expenses has also been modified. These reclassifications had no effect on the reported results of operations. Significant Accounting Policies: The significant accounting policies of the Company are summarized below. Cash and Cash Equivalents For the purpose of presentation in the Company’s Consolidated Statements of Cash Flows, cash equivalents are highly liquid instruments with remaining original maturities of three months or less. The carrying amount of cash and cash equivalents is a reasonable estimate of fair value due to the short-term maturity at purchase of these instruments. Investments in Securities Investments in Fixed Maturity Securitie s: Fixed maturity securities are classified as available-for-sale and reported at fair value with unrealized gains and losses, net of tax and adjusted for other-than-temporary declines in fair value, and reported as accumulated other comprehensive income. Securities are regularly reviewed for differences between the cost and estimated fair value of each security for factors that may indicate that a decline in fair value is other-than-temporary. Some factors considered in evaluating whether or not a decline in fair value is other-than-temporary include the duration and extent to which the fair value has been less than cost and the Company’s ability and intent to retain the investment for a period of time sufficient to allow for a recovery in value. Such reviews are inherently uncertain and the value of the investment may not fully recover or may decline in future periods resulting in a realized loss. Realized gains and losses are determined on the specific identification method. Refer to Note 3 for further information about the Company’s investments in fixed maturity securities. Investments in Equity Securities: Equity securities represent ownership interests held by the Company in entities for investment purposes. Prior to January 1, 2018, these equity securities were classified as available-for-sale and were carried at fair value on the Company’s Consolidated Balance Sheets. Unrealized holding gains and losses from changes in the fair values of available-for-sale equity securities were reported in accumulated other comprehensive income. Effective January 1, 2018, unrealized holding gains and losses are reported in the Consolidated Statements of Income as a net unrealized gain or loss on equity securities. As a result, other-than-temporary impairments will no longer be considered for equity securities. Realized investment gains and losses from sales are recorded on the trade date and are determined using the specific identification method. Refer to Note 3 for further information about the Company’s investments in equity securities. Other Investments Other investments consist of investments in unconsolidated affiliated entities, typically structured as limited liability companies ("LLC's"), without readily determinable fair values. Other investments are accounted for under either the equity method or the measurement alternative method. The measurement alternative method is used when an investment does not qualify for the equity method or the practical expedient in Accounting Standards Codification (“ASC”) Topic 820, which estimates fair value using the net asset value per share. Under the measurement alternative method, investments are recorded at cost, less any impairment and plus or minus any changes resulting from observable price changes in orderly transactions for an identical or similar investment of the same issuer. The aggregate cost of the Company’s cost method investments totaled $6.6 million and $5.4 million at December 31, 2018 and 2017 , respectively. The Company monitors any events or changes in circumstances that may have had a significant adverse effect on the fair value of these investments and makes any necessary adjustments. Short-term Investments Short-term investments are comprised of money market accounts which are invested in short-term funds, commercial paper, certificates of deposit, and other investments expected to have maturities or redemptions greater than three months and less than twelve months. The Company monitors any events or changes in circumstances that may have a significant adverse effect on the fair value of these investments. Property Acquired in Settlement of Claims Property acquired in settlement of claims is held for sale and valued at the lower of cost or market. Adjustments to reported estimated realizable values and realized gains or losses on dispositions are recorded as increases or decreases in claim costs. Properties acquired in settlement of claims are included in other assets in the Consolidated Balance Sheets. Property and Equipment Property and equipment are recorded at cost and are depreciated principally under the straight-line method over the estimated useful lives ( 3 to 25 years) of the respective assets. Maintenance and repairs are charged to operating expenses and improvements are capitalized. Reserve for Claims The total reserve for all reported and unreported losses the Company incurred through December 31, 2018 is represented by the reserve for claims. The Company’s reserve for unpaid losses and loss adjustment expenses is established using estimated amounts required to settle claims for which notice has been received (reported) and the amount estimated to be required to satisfy incurred claims of policyholders which may be reported in the future (incurred but not reported, or “IBNR”). Despite the variability of such estimates, management believes that the reserve is adequate to cover claim losses resulting from pending and future claims for policies issued through December 31, 2018 . The Company continually reviews and adjusts its reserve estimates as necessary to reflect its loss experience and any new information that becomes available. Adjustments resulting from such reviews may be significant. Claims and losses paid are charged to the reserve for claims. Although claims losses are typically paid in cash, occasionally claims are settled by purchasing the interest of the insured or the claimant in the real property. When this event occurs, the acquiring company carries assets at the lower of cost or estimated realizable value, net of any indebtedness on the property. Income Taxes The Company makes certain estimates and judgments in determining income tax expense (benefit) for financial statement purposes. These estimates and judgments occur in the calculation of certain tax assets and liabilities which arise from differences in the timing of recognition of revenue and expense for tax and financial statement purposes. The Company provides for deferred income taxes (benefits) for the tax consequences in future years of temporary differences between the financial statements’ carrying values and the tax bases of assets and liabilities using currently enacted tax rates. The Company establishes a valuation allowance if it believes that it is more likely than not that some or all of its deferred tax assets will not be realized. Refer to Note 8 for further information regarding income taxes. Premiums Written and Commissions to Agents Generally, title insurance premiums are recognized at the time of settlement of the related real estate transaction, as the earnings process is then considered complete, irrespective of the timing of issuance of a title insurance policy or commitment. Expenses typically associated with premiums, including agent commissions, premium taxes, and a provision for future claims are recognized concurrent with recognition of related premium revenue. Allowance for Doubtful Accounts Company management continually evaluates the collectability of receivables and provides an allowance for doubtful accounts equal to estimated losses expected to be incurred in the collection of premiums and fees receivable. Changes to the allowance for doubtful accounts are reflected within net premiums written in the Consolidated Statements of Income. Amounts are charged off in the period they are deemed to be uncollectible. Quarterly, the Company evaluates the collectability of receivables. Premiums not collected within 7 months are fully reserved. Write-offs of receivables have not been material to the Company. Exchange Services Revenue Fees are recognized at the signing of a binding agreement and investment earnings are recognized as they are earned. Exchange services revenue is included in non-title services in the Consolidated Statements of Income. Fair Values of Financial Instruments The carrying amounts reported in the Consolidated Balance Sheets for cash and cash equivalents, short-term investments, premium and fees receivable, accrued interest and dividends, accounts payable, commissions payable, reinsurance payable and current income taxes recoverable/payable approximate fair value due to the short-term nature of these assets and liabilities. Estimated fair values for the majority of investment securities are based on quoted market prices. Refer to Note 3 for further information regarding investments in securities and fair value. Comprehensive Income The Company’s accumulated other comprehensive income is comprised of unrealized holding gains/losses on available-for-sale securities, net of tax, and unrecognized prior service cost and unrealized gains/losses associated with postretirement benefit liabilities, net of tax. Accumulated other comprehensive income as of December 31, 2018 consists of $981 thousand of unrealized holding gains on available-for-sale securities and $32 thousand of unrecognized actuarial losses associated with postretirement benefit liabilities. Accumulated other comprehensive income as of December 31, 2017 consists of $16.0 million of unrealized holding gains on available-for-sale securities and $58 thousand of unrecognized actuarial losses associated with postretirement benefit liabilities. Accumulated other comprehensive income as of December 31, 2016 consists of $11.9 million of unrealized holding gains on available-for-sale securities and $110 thousand of unrecognized actuarial losses associated with postretirement benefit liabilities. Share-Based Compensation The Company accounts for share-based compensation in accordance with the fair value based principles required by the Financial Accounting Standards Board (“FASB”). Share-based compensation cost is generally measured at the grant date, based on the estimated fair value of the award, and is recognized as an expense over the employee’s requisite service period. As the share-based compensation expense recognized in the Consolidated Statements of Income is based on awards ultimately expected to vest, it has been reduced for estimated forfeitures. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. Goodwill Goodwill represents the excess of cost over fair value of identifiable net assets acquired and assumed in a business combination. The fair value of the Company’s goodwill at acquisition is principally based on values obtained from a third-party valuation service. Goodwill is reviewed for impairment at least annually, or when events or changes in circumstances indicate the carrying value may not be recoverable. When evaluating whether goodwill is impaired, the Company determines through qualitative analysis whether relevant events and circumstances indicate that it is more likely than not that goodwill balances are impaired as of the testing date. If the qualitative analysis does not indicate that an impairment of goodwill is more likely than not, then no other specific quantitative impairment testing is required. If it is determined that it is more likely than not that an impairment exists, the Company performs a quantitative assessment whereby a discounted cash flow analysis is utilized to determine an estimated fair value. The estimated fair value is compared to the carrying value of goodwill as of the measurement date. The discounted cash flows used in estimating fair value are dependent on a number of significant assumptions, and therefore estimated fair value measurements are subject to change given the inherent uncertainty in predicting future results and cash flows. Other Intangible Assets The Company’s other intangible assets consist of non-compete agreements, referral relationships and a tradename resulting from agency acquisitions; all of which are recorded at the acquisition date fair value. The fair value of the Company’s other intangible assets is principally based on values obtained from a third-party valuation service. These assets are amortized on a straight-line basis over their useful lives, which range from 1 to 30 years; noting that the amortization of certain non-compete contracts will start at a future date when the related employment agreements are terminated. Other intangible assets are reviewed for impairment at least annually or when events or changes in circumstances indicate the carrying value may not be recoverable. Title Plants Title plants represent a historical record of matters affecting title to parcels of land in a particular geographic area. Title plants are recorded at the cost incurred to construct or obtain and organize historical title information to the point it can be used to perform title searches. Costs incurred to maintain, update and operate title plants are expensed as incurred. Title plants are not amortized as they are considered to have an indefinite life with no diminishment of value if properly maintained; but are subject to impairment evaluation, which the Company performs on at least an annual basis. Subsequent Events The Company has evaluated and concluded that there were no material subsequent events requiring adjustment or disclosure to its Consolidated Financial Statements. Recently Adopted Accounting Standards In February 2018, the FASB issued Accounting Standards Update ("ASU") 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income . ASU 2018-02 is intended to help organizations reclassify certain stranded income tax effects in accumulated other comprehensive income resulting from the Tax Cuts and Jobs Act (“TCJA”). Under the ASU, entities have the option to reclassify tax effects from the TCJA within other comprehensive income to retained earnings in each period in which the effect of the change in the federal corporate tax rate under the TCJA is recorded. The update is effective for annual periods beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption is permitted. The Company adopted this update on January 1, 2018 by means of a $3.1 million cumulative-effect reclassification between retained earnings and accumulated other comprehensive income. The update had no material impact on the Company's financial position and results of operations. In March 2017, the FASB issued ASU 2017-07, Compensation - Retirement Benefits (Topic 715) . This update requires entities to (1) disaggregate the current service cost component from the other components of net benefit cost (the "other components") and present it with other current compensation costs for related employees in the income statement and (2) present the other components elsewhere in the income statement and outside of income from operations if that subtotal is presented. In addition, the ASU requires entities to disclose the income statement lines that contain the other components if they are not presented on appropriately described separate lines. The update was effective for annual periods beginning after December 15, 2017, and interim periods within those fiscal years. The Company adopted this update on January 1, 2018 with no material impact on the Company’s financial position and results of operations. In January 2016, the FASB issued ASU 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities . ASU 2016-01 updated guidance to enhance the reporting model for financial instruments. Among the main principles of the guidance applicable to the Company are provisions to: (1) require equity investments, except those accounted for under the equity method of accounting or those that result in consolidation of the investee, to be measured at fair value with changes in fair value recognized in net income; (2) simplify the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment, noting that when a qualitative assessment indicates that impairment exists, an entity is required to measure the investment at fair value; (3) eliminate the requirement to disclose methods and significant assumptions used to estimate the fair value for financial instruments measured at amortized cost; (4) require entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes; (5) require separate presentation of financial assets and financial liabilities by measuring category and form of financial asset on the balance sheet or accompanying notes to the financial statements; and (6) clarify that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with the entity’s other deferred tax assets. The update was effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company adopted this update on January 1, 2018 by means of a $16.8 million cumulative-effect reclassification of the net unrealized gain related to equity securities from accumulated other comprehensive income to retained earnings. The amendments relating to equity securities without readily determinable fair values were applied prospectively to equity investments that existed as of the date of adoption. As a result, the Company recognized a $4.1 million net unrealized loss on equity investments in the Consolidated Statements of Income as of December 31, 2018 . In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) . ASU 2014-09 updated guidance to improve the comparability of revenue recognition practices for entities that either enter into contracts with customers to transfer goods or services or enter into contracts for the transfer of nonfinancial assets, unless those contracts are within the scope of other standards such as insurance contracts or lease standards. As the ASU does not apply to the Company's core title insurance business, its potential effect is limited to the Company's other lines of business. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. For public entities, this update originally became effective for interim and annual reporting periods beginning after December 15, 2016. In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date . ASU 2015-14 updated guidance to defer the effective date of the standard by one year. The Company adopted this update using the modified retrospective transition approach on January 1, 2018 with no impact on the Company's financial position and results of operations. Refer to Note 19 for further information regarding the Company's revenue from contracts with customers. Recently Issued Accounting Standards In March 2017, the FASB issued ASU 2017-08, Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities. ASU 2017-08 is intended to enhance the accounting for the amortization of premiums for purchased callable debt securities. Specifically, the ASU shortens the amortization period for certain investments in callable debt securities purchased at a premium by requiring that the premium be amortized to the earliest call date. The amendments do not require an accounting change for securities held at a discount; the discount continues to be amortized to maturity. The update is effective for annual periods beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the impact that the recently issued accounting standard will have on the Company's financial position and results of operations, but does not expect it to have a material impact. In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350). This update removes the requirement to compare the implied fair value of goodwill with its carrying amount as part of step 2 of the goodwill impairment test. As a result, under the ASU, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount and should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. In addition, the ASU clarifies that an entity should consider income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss, if applicable. The update is effective for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. None of these amendments are expected to have a material impact on the Company's financial position or results of operations. In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326) . ASU 2016-13 is intended to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. The update broadens the information that an entity must consider in developing its expected credit loss estimates, and is meant to better reflect an entity’s current estimate of all expected credit losses. In addition, this update amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. The update is effective for annual periods beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted as of fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company is currently evaluating the impact that the recently issued accounting standard will have on the Company's financial position and results of operations, but does not expect it to have a material impact. Currently, the Company's potential credit losses under this accounting standard relate to fixed maturity securities. The Company does not believe that the risk of credit losses, based on current fixed maturity securities holdings, is material to the Company's financial statements as a whole. Refer to Note 3 for further information about the Company's investments. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) . ASU 2016-02 updated guidance to improve financial reporting for leasing transactions. The core principle of the guidance is that lessees will be required to recognize assets and liabilities on the balance sheet for all leases with terms of more than twelve months. A lessee would recognize a liability to make lease payments and a right-of-use asset representing its right to use the underlying asset for the lease term. The accounting applied by a lessor is largely unchanged from current GAAP, with some targeted improvements. Disclosures will be required by lessees and lessors to meet the objective of enabling users of financial statements to assess the amount, timing, and uncertainty of cash flows arising from leases. In transition, both lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The update is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption was permitted for all entities upon issuance. The Company is currently evaluating the impact that the recently issued accounting standard will have on the Company's financial position and results of operations. The adoption of the new guidance is expected to increase assets and liabilities on the Company’s consolidated balance sheets by approximately $3.0 million , and will likely have an insignificant impact on the Company’s consolidated statements of income. In July 2018, the FASB issued ASU 2018-11, Leases (Topic 842): Targeted Improvements. The amendments in this update provide entities with an additional (and optional) transition method to adopt the new lease standard. Under this new transition method, an entity initially applies the new lease standard at the adoption date and recognizes a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. In addition, the amendments in this update provide lessors with a practical expedient, by class of underlying asset, to not separate non-lease components from the associated lease component similar to the expedient provided to lessees. The Company is not planning to adopt the optional transition method under ASU 2018-11. Use of Estimates and Assumptions 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, and disclosures of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period and accompanying notes. Actual results could differ materially from those estimates and assumptions used. The more significant of these estimates and assumptions include the following: Claims: The Company’s reserve for claims is established using estimated amounts required to settle claims for which notice has been received (reported) and the amount estimated to be required to satisfy incurred claims of policyholders which may be reported in the future. A provision for estimated future claims payments is recorded at the time policy revenue is recorded as a percentage of premium income. By their nature, title claims can often be complex, vary greatly in dollar amounts, vary in number due to economic and market conditions such as an increase in mortgage foreclosures, and involve uncertainties as to ultimate exposure. In addition, some claims may require a number of years to settle and determine the final liability for indemnity and loss adjustment expense. The payment experience may extend for more than 20 years after the issuance of a policy. Events such as fraud, defalcation and multiple property defects can substantially and unexpectedly cause increases in estimates of losses. Due to the length of time over which claim payments are made and regularly occurring changes in underlying economic and market conditions, these estimates are subject to variability. Management considers factors such as the Company’s historical claims experience, case reserve estimates on reported claims, large claims, actuarial projections and other relevant factors in determining its loss provision rates and the aggregate recorded expected liability for claims. In establishing the reserve, actuarial projections are compared with recorded reserves to evaluate the adequacy of such recorded claims reserves and any necessary adjustments are then recorded in the current period’s income statement. As the most recent claims experience develops and new information becomes available, the loss reserve estimate related to prior periods will change to more accurately reflect updated and improved emerging data. The Company reflects any adjustments to the reserve in the results of operations in the period in which new information (principally claims experience) becomes available. The Company’s reserve for claims is established using estimated amounts required to settle claims for which notice has been received (reported) and the amount estimated to be required to satisfy incurred claims of policyholders which have been incurred but not reported. Premiums written: Premium revenues from certain agency operations include accruals for transactions which have settled but have not been reported as of the balance sheet date. These accruals are based on estimates of the typical lag time between settlement of real estate transactions and the agent’s reporting of these transactions to the Company. Reporting lag times vary by market. In certain markets, the lag time may be very short, but in others, can be as high as 100 days. The Company reviews and adjusts lag time estimates periodically, using historical experience and other factors, and reflects any adjustments in the result of operations in the period in which new information becomes available. Impairments: Securities are regularly evaluated and reviewed for differences between the cost and estimated fair value of each security for factors that may indicate that a decline in estimated fair value is other-than-temporary. When, in the opinion of management, a decline in the estimated fair value of an investment is considered to be other-than-temporary, such investment is written down to its estimated fair value. Some factors considered in evaluating whether or not a decline in estimated fair value is other-than-temporary include the duration and extent to which the estimated fair value has been less than cost; the probability that the Company will be unable to collect all amounts due under the contractual terms of the security; with respect to equity securities, whether the Company’s ability and intent to retain the investment for a period of time is sufficient to allow for a recovery in value; whether the Company has the intent to sell or will more likely than not be required to sell a particular security before recovery in value; and the financial condition and prospects of the issuer (including credit ratings). These factors are reviewed quarterly and any material degradation in the prospect for recovery will be considered in the other-than-temporary impairment analysis. Such reviews are inherently uncertain |
Statutory Restrictions on Conso
Statutory Restrictions on Consolidated Stockholders' Equity and Investments | 12 Months Ended |
Dec. 31, 2018 | |
Statutory Restrictions on Consolidated Stockholders' Equity and Investments [Abstract] | |
Statutory Restrictions on Consolidated Stockholders' Equity and Investments | Statutory Accounting and Restrictions on Consolidated Stockholders’ Equity and Investments The Consolidated Financial Statements have been prepared in conformity with GAAP, which differ in some respects from statutory accounting practices prescribed or permitted in the preparation of financial statements for submission to insurance regulatory authorities. Combined capital and surplus on a statutory basis was $180.2 million and $171.9 million as of December 31, 2018 and 2017 , respectively. Net income on a statutory basis was $41.0 million , $18.8 million and $17.9 million for the years ended December 31, 2018 , 2017 and 2016 , respectively. The Company has designated approximately $35.9 million and $57.3 million of retained earnings as of December 31, 2018 and 2017 , respectively, as appropriated to reflect the required statutory premium and supplemental reserves. Refer to Note 8 for the tax treatment of the statutory premium reserve. As of December 31, 2018 and 2017 , approximately $81.8 million and $102.1 million , respectively, of consolidated stockholders’ equity represents net assets of the Company’s subsidiaries that cannot be transferred in the form of dividends, loans or advances to the parent company under statutory regulations without prior insurance department approval. During 2019, the maximum distributions the insurance subsidiaries can make to the Company without prior approval from applicable regulators total approximately $45.4 million . Fixed maturity securities totaling approximately $6.7 million and $7.1 million at December 31, 2018 and 2017 , respectively, are deposited with the insurance departments of the states in which business is conducted. |
Investments in Securities and F
Investments in Securities and Fair Value | 12 Months Ended |
Dec. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments In Securities and Fair Value | Investments and Estimated Fair Value Investments in Fixed Maturity Securities The estimated fair value, gross unrealized holding gains, gross unrealized holding losses and amortized cost for fixed maturity securities by major classification are as follows: As of December 31, 2018 (in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Fixed maturity securities, available-for-sale, at fair value: Government obligations $ 1,023 $ — $ 7 $ 1,016 General obligations of U.S. states, territories and political subdivisions 19,518 229 143 19,604 Special revenue issuer obligations of U.S. states, territories and political subdivisions 56,675 1,237 329 57,583 Corporate debt securities 10,498 303 47 10,754 Total $ 87,714 $ 1,769 $ 526 $ 88,957 As of December 31, 2017 (in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Fixed maturity securities, available-for-sale, at fair value: Governmental obligations $ 1,043 $ — $ 1 $ 1,042 General obligations of U.S. states, territories and political subdivisions 24,189 505 50 24,644 Special revenue issuer obligations of U.S. states, territories and political subdivisions 62,592 2,218 165 64,645 Corporate debt securities 12,490 527 7 13,010 Total $ 100,314 $ 3,250 $ 223 $ 103,341 The special revenue category for both periods presented includes approximately 60 individual fixed maturity securities with revenue sources from a variety of industry sectors. The scheduled maturity securities of fixed maturity securities at December 31, 2018 were as follows: Available-for-Sale (in thousands) Amortized Cost Fair Value Due in one year or less $ 12,605 $ 12,606 Due after one year through five years 31,988 32,808 Due five years through ten years 42,163 42,310 Due after ten years 958 1,233 Total $ 87,714 $ 88,957 Expected maturities will differ from contractual maturities as borrowers may have the right to call or prepay obligations with or without penalties. The following table presents the gross unrealized losses on fixed maturity securities and the estimated fair value of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous loss position at December 31, 2018 and 2017 , respectively. Less than 12 Months 12 Months or Longer Total As of December 31, 2018 (in thousands) Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized Losses Government obligations $ 1,016 $ (7 ) $ — $ — $ 1,016 $ (7 ) General obligations of U.S. states, territories and political subdivisions 4,888 (32 ) 6,469 (111 ) 11,357 (143 ) Special revenue issuer obligations of U.S. states, territories and political subdivisions 12,326 (100 ) 9,720 (229 ) 22,046 (329 ) Corporate debt securities 4,490 (28 ) 3,733 (19 ) 8,223 (47 ) Total temporarily impaired securities $ 22,720 $ (167 ) $ 19,922 $ (359 ) $ 42,642 $ (526 ) Less than 12 Months 12 Months or Longer Total As of December 31, 2017 (in thousands) Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized Losses Government obligations $ 1,042 $ (1 ) $ — $ — $ 1,042 $ (1 ) General obligations of U.S. states, territories and political subdivisions 4,560 (27 ) 3,535 (23 ) 8,095 (50 ) Special revenue issuer obligations of U.S. states, territories and political subdivisions 13,551 (61 ) 4,023 (104 ) 17,574 (165 ) Corporate debt securities 3,744 (7 ) — — 3,744 (7 ) Total temporarily impaired securities $ 22,897 $ (96 ) $ 7,558 $ (127 ) $ 30,455 $ (223 ) The decline in estimated fair value of the fixed maturity securities can be attributed primarily to changes in market interest rates and changes in credit spreads over Treasury securities. Because the Company does not have the intent to sell these securities and will likely not be compelled to sell them before it can recover its cost basis, the Company does not consider these investments to be other-than-temporarily impaired. Factors considered in determining whether a loss is temporary include the length of time and extent to which fair value has been below cost, the financial condition and prospects of the issuer (including credit ratings and analyst reports) and macro-economic changes. A total of 51 and 31 securities had unrealized losses at December 31, 2018 and 2017 , respectively. Reviews of the values of securities are inherently uncertain and the value of the investment may not fully recover, or may decline in future periods resulting in a realized loss. During 2018 , 2017 and 2016, the Company recorded no other-than-temporary impairment charges related to fixed maturity securities. Other-than-temporary impairment charges are included in the net realized (loss) gain on investments in the Consolidated Statements of Income. Investments in Equity Securities The cost and estimated fair value of equity securities are as follows: As of December 31, 2018 (in thousands) Cost Estimated Equity securities, at fair value: Common stocks $ 31,255 $ 48,489 Total $ 31,255 $ 48,489 As of December 31, 2017 (in thousands) Cost Gross Gains Gross Losses Estimated Equity securities, at fair value: Common stocks $ 26,003 $ 21,376 $ 12 $ 47,367 Total $ 26,003 $ 21,376 $ 12 $ 47,367 Effective January 1, 2018, unrealized holding gains and losses are reported in the Consolidated Statements of Income as net unrealized gain or loss on equity securities and other-than-temporary impairments will no longer be considered for equity securities. As such, unrealized holding gains and losses are excluded from the table above as of December 31, 2018. Reference the discussion under Recently Adopted Accounting Standards in Note 1. During 2017 and 2016, the Company recorded other-than-temporary impairment charges in the amount of $26 thousand and $234 thousand related to equity securities, respectively. Interest and Dividends Earnings on investments for the years ended December 31 were as follows: (in thousands) 2018 2017 2016 Fixed maturity securities $ 2,809 $ 3,037 $ 3,506 Equity securities 1,308 1,203 1,158 Invested cash and other short-term investments 492 202 20 Miscellaneous interest 10 3 — Investment income $ 4,619 $ 4,445 $ 4,684 Net Realized (Loss) Gain on Investments Gross realized gains and losses on sales of investments for the years ended December 31 are summarized as follows: (in thousands) 2018 2017 2016 Gross realized gains from securities: Corporate debt securities $ — $ — $ 119 Common stocks and nonredeemable preferred stocks 1,030 1,487 954 Auction rate securities — — 75 Total 1,030 1,487 1,148 Gross realized losses from securities: General obligations of U.S. states, territories and political subdivisions — — (1 ) Special revenue issuer obligations of U.S. states, territories and political subdivisions — — (1 ) Common stocks (1,147 ) (260 ) (173 ) Other-than-temporary impairment of securities — (26 ) (234 ) Total (1,147 ) (286 ) (409 ) Net realized (loss) gain $ (117 ) $ 1,201 $ 739 Net realized gain (loss) on other investments: Impairments on other investments $ — $ (182 ) $ — Gains on other investments 7 22 29 Total $ 7 $ (160 ) $ 29 Net realized (loss) gain on investments $ (110 ) $ 1,041 $ 768 Realized gains and losses are determined on the specific identification method. Variable Interest Entities The Company holds investments in variable interest entities (“VIEs”) that are not consolidated in the Company's financial statements as the Company is not the primary beneficiary. These entities are considered VIEs as the equity investors at risk, including the Company, do not have the power over the activities that most significantly impact the economic performance of the entities; this power resides with a third-party general partner or managing member that cannot be removed except for cause. The following table sets forth details about the Company's variable interest investments in VIEs, which are structured either as limited partnerships ("LPs") or limited liability companies ("LLCs"), as of December 31, 2018: Type of Investment (in thousands) Balance Sheet Classification Carrying Value Estimated Fair Value Maximum Potential Loss (a) Tax credit LPs Other investments $ 629 $ 629 $ 1,325 Real estate LLCs or LPs Other investments 5,073 6,093 8,250 Small business investment LLCs or LPs Other investments 4,642 4,364 8,910 Total $ 10,344 $ 11,086 $ 18,485 (a) Maximum potential loss is calculated as the total investment in the LLC or LP including any capital commitments that may have not yet been called. The Company is not exposed to any loss beyond the total commitment of its investment. Valuation of Financial Assets The FASB has established a valuation hierarchy for disclosure of the inputs used to measure estimated fair value of financial assets and liabilities, such as securities. This hierarchy categorizes the inputs into three broad levels as follows. Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument. Level 3 inputs are unobservable inputs based on the Company’s own assumptions used to measure assets and liabilities at fair value. A financial instrument’s classification within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement – consequently, if there are multiple significant valuation inputs that are categorized in different levels of the hierarchy, the instrument’s hierarchy level is the lowest level (with Level 3 being the lowest level) within which any significant input falls. The Level 1 category includes equity securities that are measured at estimated fair value using quoted active market prices. The Level 2 category includes fixed maturity securities such as corporate debt securities, U.S. government obligations, and obligations of U.S. states, territories, and political subdivisions. Estimated fair value is principally based on market values obtained from a third-party pricing service. Factors that are used in determining estimated fair market value include benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers and reference data. The Company receives one quote per security from a third-party pricing service, although as discussed below, the Company does consult other pricing resources when confirming that the prices it obtains reflect the fair values of the instruments in accordance with ASC 820 , Fair Value Measurements and Disclosures . Generally, quotes obtained from the pricing service for instruments classified as Level 2 are not adjusted and are not binding. As of December 31, 2018 and 2017 , the Company did not adjust any Level 2 fair values. A number of the Company’s investment grade corporate debt securities are frequently traded in active markets, and trading prices are consequently available for these securities. However, these securities are classified as Level 2 because the pricing service from which the Company has obtained estimated fair values for these instruments uses valuation models that use observable market inputs in addition to trading prices. Substantially all of the input assumptions used in the service’s model are observable in the marketplace or can be derived or supported by observable market data. In the measurement of the estimated fair value of certain financial instruments, other valuation techniques were utilized if quoted market prices were not available. These derived fair value estimates are significantly affected by the assumptions used. Additionally, ASC 820 excludes from its scope certain financial instruments, including those related to insurance contracts, pension and other postretirement benefits, and equity method investments. In estimating the fair value of the financial instruments presented, the Company used the following methods and assumptions: Cash and cash equivalents The carrying amount for cash and cash equivalents is a reasonable estimate of fair value due to the short-term maturity of these investments. Measurement alternative equity investments The measurement alternative method requires investments without readily determinable fair values to be recorded at cost, less impairments plus or minus any changes resulting from observable price changes. The Company monitors any events or changes in circumstances that may have had a significant adverse effect on the fair value of these investments and makes any necessary adjustments. Accrued interest and dividends The carrying amount for accrued dividends and interest is a reasonable estimate of fair value due to the short-term maturity of these assets. The following table presents, by level, fixed maturity securities carried at estimated fair value measured as of December 31, 2018 and 2017 : As of December 31, 2018 (in thousands) Level 1 Level 2 Level 3 Total Fixed maturity securities: Obligations of U.S. states, territories and political subdivisions* $ — $ 78,203 $ — $ 78,203 Corporate debt securities* — 10,754 — 10,754 Total $ — $ 88,957 $ — $ 88,957 As of December 31, 2017 (in thousands) Level 1 Level 2 Level 3 Total Fixed maturity securities: Obligations of U.S. states, territories and political subdivisions* $ — $ 90,331 $ — $ 90,331 Corporate debt securities* — 13,010 — 13,010 Total $ — $ 103,341 $ — $ 103,341 *Denotes fair market value obtained from pricing services. The estimated fair values of equity investments and other financial instruments as of December 31, 2018 and December 31, 2017 are presented in the following table: As of December 31, 2018 (in thousands) Level 1 Level 2 Level 3 Total Financial assets: Cash $ 18,694 $ — $ — $ 18,694 Accrued interest and dividends 946 — — 946 Equity securities, at fair value: Common stocks 48,489 — — 48,489 Short-term investments: Commercial paper and money market funds 32,787 — — 32,787 Other investments: Equity investments in unconsolidated affiliates, equity method — — 5,847 5,847 Equity investments in unconsolidated affiliates, measurement alternative — — 6,589 6,589 Total $ 100,916 $ — $ 12,436 $ 113,352 As of December 31, 2017 (in thousands) Level 1 Level 2 Level 3 Total Financial assets: Cash $ 20,214 $ — $ — $ 20,214 Accrued interest and dividends 1,100 — — 1,100 Equity securities, at fair value: Common stocks 47,367 — — 47,367 Short-term investments: Commercial paper, money market funds, and certificates of deposit 23,780 — — 23,780 Other investments: Equity investments in unconsolidated affiliates, equity method — — 6,593 6,593 Equity investments in unconsolidated affiliates, measurement alternative — — 5,439 5,439 Total $ 92,461 $ — $ 12,032 $ 104,493 The Company did not hold any Level 3 category debt or marketable equity investment securities as of December 31, 2018 or 2017 . There were no transfers into or out of Levels 1, 2 or 3 during the periods presented. To help ensure that estimated fair value determinations are consistent with ASC 820, prices from our pricing services go through multiple review processes to ensure appropriate pricing. Pricing procedures and inputs used to price each security include, but are not limited to, the following: unadjusted quoted market prices for identical securities such as stock market closing prices; non-binding quoted prices for identical securities in markets that are not active; interest rates; yield curves observable at commonly quoted intervals; volatility; prepayment speeds; loss severity; credit risks; and default rates. The Company reviews the procedures and inputs used by its pricing services, and verifies a sample of the services’ quotes by comparing them to values obtained from other pricing resources. In the event the Company disagrees with a price provided by its pricing services, the respective service reevaluates the price to corroborate the market information and then reviews inputs to the evaluation in light of potentially new market data. The Company believes that these processes and inputs result in appropriate classifications and estimated fair values consistent with ASC 820. Certain equity investments under the measurement alternative are measured at estimated fair value on a non-recurring basis and are reviewed for impairment quarterly. If any such investment is determined to be other-than-temporarily impaired, an impairment charge is recorded against such investment and reflected in the Consolidated Statements of Income. There were no impairments of such investments made during the twelve-month period ended December 31, 2018 or 2017 . The following table presents a rollforward of equity investments under the measurement alternative as of December 31, 2018 and 2017 : (in thousands) Balance, January 1, 2018 Amounts Impaired Observable Changes Purchases and Additional Commitments Paid Sales, Returns of Capital and Other Reductions Balance, December 31, 2018 Other investments: Equity investments in unconsolidated affiliates, measurement alternative $ 5,439 $ — $ — $ 1,486 $ (336 ) $ 6,589 Total $ 5,439 $ — $ — $ 1,486 $ (336 ) $ 6,589 (in thousands) Balance, January 1, 2017 Amounts Impaired Observable Changes Purchases and Additional Commitments Paid Sales, Returns of Capital and Other Reductions Balance, December 31, 2017 Other investments: Equity investments in unconsolidated affiliates, measurement alternative $ 4,744 $ — $ — $ 1,082 $ (387 ) $ 5,439 Total $ 4,744 $ — $ — $ 1,082 $ (387 ) $ 5,439 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment and estimated useful lives at December 31 are summarized as follows: (in thousands) 2018 2017 Land $ 1,413 $ 1,123 Office buildings and improvements (25 years) 4,492 4,406 Furniture, fixtures and equipment (3 to 10 years) 14,148 12,993 Automobiles (3 years) 935 891 Total 20,988 19,413 Less accumulated depreciation (10,684 ) (9,240 ) Property and equipment, net $ 10,304 $ 10,173 Included within furniture, fixtures and equipment is software developed by the Company for internal use. Capitalized costs include both direct and indirect costs, such as payroll costs of employees associated with developing software, incurred during the software development stage. |
Reinsurance
Reinsurance | 12 Months Ended |
Dec. 31, 2018 | |
Reinsurance Disclosures [Abstract] | |
Reinsurance | Reinsurance The Company assumes and cedes reinsurance with other insurance companies in the normal course of business. Premiums assumed and ceded were approximately $4 thousand and $327 thousand , respectively, for 2018 , $3 thousand and $264 thousand , respectively, for 2017 and $17 thousand and $141 thousand , respectively, for 2016 . Ceded reinsurance is comprised of excess of loss treaties, which outline the conditions in which the reinsurance company will pay claims and protect against losses over certain agreed upon amounts. The Company remains liable to the insured for claims under ceded insurance policies in the event the assuming insurance companies are unable to meet their obligations under these contracts. The Company has not paid or recovered any reinsured losses during the three years ended December 31, 2018 . |
Reserves for Claims
Reserves for Claims | 12 Months Ended |
Dec. 31, 2018 | |
Liability for Future Policy Benefits and Unpaid Claims and Claims Adjustment Expense [Abstract] | |
Reserves for Claims | Reserve for Claims Changes in the reserve for claims for the years ended December 31 are summarized as follows based on the year in which the policies were written: (in thousands) 2018 2017 2016 Balance, beginning of period $ 34,801 $ 35,305 $ 37,788 (Benefit) provision related to: Current year 6,762 7,432 6,673 Prior years (7,094 ) (4,121 ) (6,430 ) Total (benefit) provision charged to operations (332 ) 3,311 243 Claims paid, net of recoveries, related to: Current year (178 ) (75 ) (103 ) Prior years (2,562 ) (3,740 ) (2,623 ) Total claims paid, net of recoveries (2,740 ) (3,815 ) (2,726 ) Balance, end of year $ 31,729 $ 34,801 $ 35,305 The Company continually refines its reserve estimates as current loss experience develops and credible data emerges. Movements in the reserve related to prior periods were primarily the result of changes to estimates to better reflect the latest reported loss data. The 2018 decrease in the provision for claims compared with 2017 primarily related to favorable loss experience and higher levels of favorable loss development in 2018. The favorable development in 2018 was primarily related to policy years 2011 through 2017. Due to variances between actual and expected loss payments, loss development is subject to significant variability. The Company does not recognize claim recoveries until an actual payment has been received by the Company. The Company realized claim recoveries of approximately $1.9 million , $570 thousand and $1.0 million during 2018 , 2017 and 2016 , respectively. The provision for claims as a percentage of net premiums written was (0.2)% , 2.4% and 0.2% in 2018 , 2017 and 2016 , respectively. A large claim is defined as a claim with incurred losses exceeding $500 thousand . Due to the small volume of large claims, the long-tail nature of title insurance claims and the inherent uncertainty in loss emergence patterns, large claim activity can vary significantly between policy years. The estimated development of large claims by policy year is therefore subject to significant changes as experience develops. A summary of the Company’s reserve for claims, broken down into its components of known title claims and IBNR, follows: (in thousands, except percentages) 2018 % 2017 % Known title claims $ 3,007 9.5 $ 4,646 13.4 IBNR 28,722 90.5 30,155 86.6 Total reserve for claims $ 31,729 100.0 $ 34,801 100.0 In management’s opinion, the reserve for claims is adequate to cover claim losses which might result from pending and future claims. |
Earnings Per Common Share and S
Earnings Per Common Share and Share Awards | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Common Share and Share Awards | Earnings Per Common Share and Share Awards Basic earnings per common share is computed by dividing net income attributable to the Company by the weighted average number of common shares outstanding during the reporting period. Diluted earnings per common share is computed by dividing net income attributable to the Company by the combination of dilutive potential common stock, comprised of shares issuable under the Company’s share-based compensation plans and the weighted average number of common shares outstanding during the reporting period. Dilutive common share equivalents include the dilutive effect of in-the-money share-based awards, which are calculated based on the average share price for each period using the treasury stock method. Under the treasury stock method, when share-based awards are exercised, (a) the exercise price of a share-based award and (b) the amount of compensation cost, if any, for future services that the Company has not yet recognized, are assumed to be used to repurchase shares in the current period. The following table sets forth the computation of basic and diluted earnings per share for the years ended December 31: (in thousands, except per share amounts) 2018 2017 2016 Net income attributable to the Company $ 21,892 $ 25,707 $ 19,523 Weighted average common shares outstanding – Basic 1,887 1,886 1,908 Incremental shares outstanding assuming the exercise of dilutive stock options and SARs (share-settled) 10 10 7 Weighted average common shares outstanding – Diluted 1,897 1,896 1,915 Basic earnings per common share $ 11.60 $ 13.63 $ 10.23 Diluted earnings per common share $ 11.54 $ 13.56 $ 10.19 There were 9 thousand and 4 thousand potential shares excluded from the computation of diluted earnings per share in 2018 and 2017 , respectively. There were no potential shares excluded from the computation of diluted earnings per share in 2016 . The Company historically has adopted employee stock award plans under which restricted stock, and options or stock appreciation rights ("SARs") of the Company's stock may be granted to key employees or directors of the Company at a price not less than the market value on the date of grant. There is currently one active plan from which the Company may grant share-based awards. The awards eligible to be granted under the active plan are limited to SARs, and the maximum aggregate number of shares of common stock of the Company available pursuant to the plan for the grant of SARs is 250 thousand shares. A summary of share-based award transactions for all share-based award plans follows: (in thousands, except weighted average exercise price and average remaining contractual term) Number Of Shares Weighted Average Exercise Price Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding as of January 1, 2016 22 $ 57.04 3.93 $ 945 SARs granted 5 93.87 SARs exercised (2 ) 32.00 Outstanding as of December 31, 2016 25 $ 65.85 3.85 $ 837 SARs granted 4 192.71 SARs exercised (4 ) 36.38 Outstanding as of December 31, 2017 25 $ 93.40 3.98 $ 2,624 SARs granted 4 188.71 SARs exercised (1 ) 41.50 Outstanding as of December 31, 2018 28 $ 110.27 3.64 $ 2,019 Exercisable as of December 31, 2018 27 $ 107.05 3.53 $ 2,019 Unvested as of December 31, 2018 1 $ 188.71 6.38 $ — The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the quoted price of the Company’s common stock at December 31, 2018 . The intrinsic values of SARs exercised during 2018 , 2017 and 2016 were approximately $153 thousand , $473 thousand and $117 thousand , respectively. There were no options outstanding at December 31, 2018 . The following table summarizes information about SARs outstanding at December 31, 2018 : (in thousands, except exercise prices and average remaining contractual term) SARs Outstanding at Year-End SARs Exercisable at Year-End Range of Exercise Prices Number Outstanding Weighted Average Remaining Contractual Life Weighted Average Exercise Price Number Exercisable Weighted Average Exercise Price $ 50.00 — $ 59.99 3 0.37 $ 50.50 3 $ 50.50 60.00 — 69.99 4 2.39 68.70 4 68.70 70.00 — 79.99 8 2.58 72.44 8 72.44 90.00 — 99.99 4 4.38 93.87 4 93.87 150.00 — 199.99 9 5.88 190.71 8 191.00 $ 50.00 — $ 199.99 28 3.64 $ 110.27 27 $ 107.05 In 2018 , 4 thousand SARs vested with a fair value of approximately $327 thousand . During the second quarters of 2018 , 2017 and 2016 , the Company issued share-settled SARs to the directors of the Company. SARs give the holder the right to receive stock equal to the appreciation in the value of shares of stock from the grant date for a specified period of time, and as a result, are accounted for as equity instruments. The fair value of each award is estimated on the date of grant using the Black-Scholes option valuation model with the weighted average assumptions noted in the table shown below. Expected volatilities are based on both the implied and historical volatility of the Company’s stock. The Company uses historical data to project SAR exercises and pre-exercise forfeitures within the valuation model. The expected term of awards represents the period of time that SARs granted are expected to be outstanding. The interest rate assumed for the expected life of the award is based on the U.S. Treasury yield curve in effect at the time of the grant. The weighted average fair values for the SARs issued during 2018 , 2017 and 2016 were $78.61 , $55.40 and $28.75 , respectively, and were estimated using the weighted average assumptions shown in the table below. 2018 2017 2016 Expected life in years 7.0 7.0 7.0 Volatility 39.0% 26.2% 28.9% Interest rate 3.1% 2.0% 1.7% Yield rate 0.8% 0.8% 0.7% There was approximately $327 thousand , $219 thousand and $132 thousand of compensation expense relating to SARs vesting on or before December 31, 2018 , 2017 and 2016 , respectively, included in salaries, employee benefits and payroll taxes in the Consolidated Statements of Income. As of December 31, 2018 , there was approximately $88 thousand of total unrecognized compensation cost related to unvested share-based compensation arrangements granted under the Company’s stock award plans. That cost is expected to be recognized over a weighted average period of approximately 3 months . The estimated weighted average grant-date fair value of SARs granted for the years ended December 31, was as follows: 2018 2017 2016 Exercise price equal to market price on date of grant: Weighted average market price $ 188.71 $ 192.71 $ 93.87 Weighted average grant-date fair value $ 78.61 $ 55.40 $ 28.75 There have been no stock options or SARs granted where the exercise price was less than the market price on the date of grant. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The components of income tax expense for the years ended December 31 are summarized as follows: (in thousands) 2018 2017 2016 Current: Federal $ 9,156 $ 9,163 $ 5,745 State 128 71 81 Total current 9,284 9,234 5,826 Deferred: Federal (4,064 ) (4,649 ) 2,756 State (10 ) (15 ) 34 Total deferred (4,074 ) (4,664 ) 2,790 Total $ 5,210 $ 4,570 $ 8,616 For state income tax purposes, ITIC and NITIC generally pay only a gross premium tax found in premium and retaliatory taxes in the Consolidated Statements of Income. On December 22, 2017, the TCJA, was enacted into law. The new tax legislation, among other changes, reduced the federal corporate income tax rate from 35% to 21% , effective January 1, 2018. As required under generally accepted accounting principles, the Company’s deferred tax assets and liabilities were revalued at the newly enacted U.S. corporate income tax rate. The impact was recognized in the Company’s provision for income taxes in the fourth quarter of 2017. The revaluation resulted in a benefit of approximately $5.3 million , or $2.82 per diluted share. At December 31, the approximate tax effect of each component of deferred income tax assets and liabilities is summarized as follows: (in thousands) 2018 2017 Deferred income tax assets: Accrued benefits and retirement services $ 2,758 $ 2,449 Other-than-temporary impairment of assets 198 265 Allowance for doubtful accounts 82 102 Net operating loss carryforward 28 33 Reinsurance and commission payable 13 — Postretirement benefit obligation 8 18 Other 359 878 Total 3,446 3,745 Deferred income tax liabilities: Net unrealized gain on investments 3,924 5,193 Intangible assets 1,250 1,338 Excess of tax over book depreciation 1,104 1,042 Recorded reserve for claims, net of statutory premium reserves 599 4,126 Other 753 672 Total 7,630 12,371 Net deferred income tax liabilities $ (4,184 ) $ (8,626 ) At December 31, 2018 and 2017 , no valuation allowance was recorded. Based upon the Company’s historical results of operations, the existing financial condition of the Company and management’s assessment of all other available information, management believes that it is more likely than not that the benefit of these deferred income tax assets will be realized. As computed for the years ended December 31 at the U.S. federal statutory income tax rate of 21.0% for 2018 , 35.0% for 2017 and 34.6% for 2016 , respectively, to income tax expense follows: (in thousands) 2018 2017 2016 Anticipated income tax expense $ 5,684 $ 10,595 $ 9,734 Increase (decrease) related to: State income taxes, net of federal income tax benefit 101 46 53 Tax-exempt interest income, net of amortization (1,026 ) (1,298 ) (1,075 ) Tax Cuts and Jobs Act — (5,342 ) — Other, net 451 569 (96 ) Provision for income taxes $ 5,210 $ 4,570 $ 8,616 In accounting for uncertainty in income taxes, the Company is required to recognize in its financial statements the impact of a tax position if that position is more likely than not of being sustained on an audit, based on the technical merits of the position. In this regard, an uncertain tax position represents the Company’s expected treatment of a tax position taken in a filed tax return, or planned to be taken in a future tax return, that has not been reflected in measuring income tax expense for financial reporting purposes. There were no unrecognized tax benefits or liabilities as of December 31, 2018 . The amount of unrecognized tax benefit or liability may increase or decrease in the future for various reasons, including adding amounts for current tax year positions, expiration of open income tax returns due to the expiration of the applicable statute of limitations, changes in management’s judgment about the level of uncertainty, status of examinations, litigation and legislative activity and the additions or eliminations of uncertain tax positions. The Company’s policy is to report interest and penalties related to income taxes in the other line item in the Consolidated Statements of Income. The Company, or one of its subsidiaries, files income tax returns in the U.S. federal jurisdiction and various states. With few exceptions, the Company is no longer subject to U.S. federal or state and local examinations by taxing authorities for years before 2015. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2018 | |
Leases [Abstract] | |
Leases | Leases The Company leases certain office facilities and equipment under operating leases. Rental expense also includes occasional rental of automobiles. Rent expense totaled approximately $1.4 million , $1.2 million , and $896 thousand in 2018 , 2017 and 2016 , respectively. The future minimum lease payments under operating leases that have initial or remaining noncancelable lease terms in excess of one year as of December 31, 2018 , are summarized as follows: Year Ended (in thousands) 2019 $ 1,181 2020 1,009 2021 838 2022 617 2023 196 Thereafter 166 Total $ 4,007 |
Retirement Agreements and Other
Retirement Agreements and Other Postretirement Benefit Plan | 12 Months Ended |
Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |
Retirement Agreements and Other Postretirement Benefit Plan | Retirement Agreements and Other Postretirement Benefit Plan The Company has a 401(k) savings plan. In order to participate in the plan, individuals must have worked at the Company for at least 3 months. In order to be eligible for employer contributions, individuals must be employed for one full year and work at least 1,000 hours annually. The Company makes a 3% Safe Harbor contribution and also has the option annually to make a discretionary profit share contribution. Individuals may elect to make contributions up to the maximum deductible amount as determined by the Internal Revenue Code. Expenses related to the 401(k) plan were approximately $1.2 million , $1.6 million and $810 thousand for 2018 , 2017 and 2016 , respectively. In November 2003, ITIC, a wholly owned subsidiary of the Company, entered into employment agreements with the Chief Executive Officer, Chief Financial Officer and Chief Operating Officer of ITIC. These individuals also serve as the Chairman, President and Executive Vice President, respectively, of the Company. The agreements provide compensation and life, health, dental and vision benefits upon the occurrence of specific events, including death, disability, retirement, termination without cause or upon a change in control. The employment agreements also prohibit each of these executives from competing with ITIC and its parent, subsidiaries and affiliates in North Carolina while employed by ITIC and for a period of two years following termination of their employment. In addition, during the second quarter of 2004, ITIC entered into nonqualified deferred compensation plan agreements with these executives. The amounts accrued for all agreements at December 31, 2018 and 2017 were approximately $10.9 million and $9.5 million , respectively, which includes postretirement compensation and health benefits, and was calculated based on the terms of the contract. Both the 2018 and 2017 accruals are included in the accounts payable and accrued liabilities line item of the Consolidated Balance Sheets. These executive contracts are accounted for on an individual contract basis. On December 24, 2008, the executive contracts were amended effective January 1, 2009 to bring them into compliance with Section 409A of the Internal Revenue Code, and were amended and restated to provide for an annual cash payment to the officers equal to the amounts the Company would have contributed to their accounts under its 401(k) plan if such contributions were not limited by the federal tax laws, less the amount of any contributions that the Company actually makes to their accounts under the Company’s 401(k) plan. On November 17, 2003, ITIC entered into employment agreements with key executives that provide for the continuation of certain employee benefits upon retirement. The executive employee benefits include health insurance, dental insurance, vision insurance and life insurance. The benefits are unfunded. Estimated future benefit payouts expected to be paid for each of the next five years are $12 thousand in 2019 , $14 thousand in 2020 , $16 thousand in 2021 , $23 thousand in 2022 , $32 thousand in 2023 and $192 thousand in the next five years thereafter. Cost of the Company’s postretirement benefits included the following components and is presented in the personnel expenses line of its Consolidated Statements of Income: (in thousands) 2018 2017 2016 Net periodic benefit cost Service cost – benefits earned during the year $ — $ — $ 10 Interest cost on the projected benefit obligation 32 37 35 Amortization of unrecognized prior service cost — — — Amortization of unrecognized loss — 9 9 Net periodic benefits cost at end of year $ 32 $ 46 $ 54 The Company is required to recognize the funded status (i.e., the difference between the fair value of the assets and the accumulated postretirement benefit obligations of its postretirement benefits) in its Consolidated Balance Sheet, with a corresponding adjustment to accumulated other comprehensive income, net of tax. The net amount in accumulated other comprehensive income is $(41) thousand , $(32) thousand net of tax, for December 31, 2018 , and $(87) thousand , $(58) thousand net of tax, for December 31, 2017 , and represents the net unrecognized actuarial losses and unrecognized prior service costs. The effects of the funded status on the Company’s Consolidated Balance Sheets at December 31, 2018 and 2017 are presented in the following table: (in thousands) 2018 2017 Funded status Actuarial present value of future benefits: Fully eligible active employee $ (882 ) $ (896 ) Non-eligible active employees — — Plan assets — — Funded status of accumulated postretirement benefit obligation, recognized in other liabilities $ (882 ) $ (896 ) Development of the accumulated postretirement benefit obligation for the years ended December 31, 2018 and 2017 includes the following: (in thousands) 2018 2017 Accrued postretirement benefit obligation at beginning of year $ (896 ) $ (929 ) Service cost – benefits earned during the year — — Interest cost on projected benefit obligation (32 ) (37 ) Actuarial gain 46 70 Accrued postretirement benefit obligation at end of year $ (882 ) $ (896 ) The changes in amounts related to accumulated other comprehensive income, pre-tax, are as follows: (in thousands) 2018 2017 Balance at beginning of year $ 87 $ 166 Components of accumulated other comprehensive income: Unrecognized prior service cost — — Amortization of loss, net — (9 ) Actuarial gain (46 ) (70 ) Balance at end of year $ 41 $ 87 The amounts currently in accumulated other comprehensive income, pre-tax, that will be reclassified to the Consolidated Statements of Income and recognized as components of net periodic benefit costs in 2019 are: (in thousands) Projected 2019 Amortization of unrecognized prior service cost $ — Amortization of unrecognized loss — Net periodic benefit cost at end of year $ — Assumed health care cost trend rates do have an effect on the amounts reported for the postretirement benefit obligations. The following illustrates the effects on the net periodic postretirement benefit cost (“NPPBC”) and the accumulated postretirement benefit obligation (“APBO”) of a one percentage point increase and one percentage point decrease in the assumed health care cost trend rate as of December 31, 2018 : (in thousands) One Percentage Point Increase One Percentage Point Decrease Net periodic postretirement benefit cost Effect on the service cost component $ — $ — Effect on interest cost 7 (5 ) Total effect on the net periodic postretirement benefit cost $ 7 $ (5 ) Accumulated postretirement benefit obligation (including active employees who are not fully eligible) Effect on those currently receiving benefits (retirees and spouses) $ — $ — Effect on active fully eligible 176 (139 ) Effect on actives not yet eligible — — Total effect on the accumulated postretirement benefit obligation $ 176 $ (139 ) |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Legal Proceedings. The Company and its subsidiaries are involved in legal proceedings that are incidental to their business. In the Company’s opinion, based on the present status of these proceedings, any potential liability of the Company or its subsidiaries with respect to these legal proceedings, will not, in the aggregate, be material to the Company’s consolidated financial condition or operations. Regulation . The Company’s title insurance and trust subsidiaries are regulated by various federal, state and local governmental agencies and are subject to various audits and inquiries. It is the opinion of management based on its present expectations that these audits and inquiries will not have a material impact on the Company’s consolidated financial condition or operations. Escrow and Trust Deposits . As a service to its customers, the Company, through ITIC, administers escrow and trust deposits representing earnest money received under real estate contracts, undisbursed amounts received for settlement of mortgage loans and indemnities against specific title risks. Cash held by the Company for these purposes was approximately $31.6 million and $20.9 million as of December 31, 2018 and 2017 , respectively. These amounts are not considered assets of the Company and, therefore, are excluded from the accompanying Consolidated Balance Sheets; however, the Company remains contingently liable for the disposition of these deposits. Like-Kind Exchange Proceeds . In administering tax-deferred property exchanges, the Company’s subsidiary, Investors Title Exchange Corporation (“ITEC”), serves as a qualified intermediary for exchanges, holding the net sales proceeds from relinquished property to be used for purchase of replacement property. Another Company subsidiary, Investors Title Accommodation Corporation (“ITAC”), serves as exchange accommodation titleholder and, through limited liability companies that are wholly owned subsidiaries of ITAC, holds property for exchangers in reverse exchange transactions. Like-kind exchange deposits and reverse exchange property totaled approximately $308.7 million and $185.0 million as of December 31, 2018 and 2017 , respectively. These amounts are not considered assets of the Company and, therefore, are excluded from the accompanying Consolidated Balance Sheets; however, the Company remains contingently liable for the disposition of the transfers of property, disbursements of proceeds and the return on the proceeds at the agreed upon rate. Exchange services revenue includes earnings on these deposits; therefore, investment income is shown as other revenue rather than investment income. These like-kind exchange funds are primarily invested in money market and other short-term investments. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The Company has one reportable segment, title insurance services. The remaining immaterial segments have been combined into a group called “All Other.” The title insurance segment primarily issues title insurance policies through approved attorneys from underwriting offices and through independent issuing agents. Title insurance policies insure titles to real estate. Provided below is selected financial information about the Company’s operations by segment for the periods ended December 31, 2018 , 2017 and 2016 : 2018 (in thousands) Title Insurance All Other Intersegment Eliminations Total Insurance and other services revenues $ 153,687 $ 8,315 $ (9,229 ) $ 152,773 Investment income 2,542 1,054 — 3,596 Net realized (loss) gain on investments (167 ) 57 — (110 ) Total revenues $ 156,062 $ 9,426 $ (9,229 ) $ 156,259 Operating expenses 126,367 8,424 (5,601 ) 129,190 Income before income taxes $ 29,695 $ 1,002 $ (3,628 ) $ 27,069 Total assets $ 199,531 $ 44,737 $ — $ 244,268 2017 (in thousands) Title Insurance All Other Intersegment Eliminations Total Insurance and other services revenues $ 153,469 $ 7,307 $ (6,794 ) $ 153,982 Investment income 5,834 770 — 6,604 Net realized gain on investments 932 109 — 1,041 Total revenues $ 160,235 $ 8,186 $ (6,794 ) $ 161,627 Operating expenses 129,073 7,913 (5,630 ) 131,356 Income before income taxes $ 31,162 $ 273 $ (1,164 ) $ 30,271 Total assets $ 193,828 $ 55,085 $ — $ 248,913 2016 (in thousands) Title Insurance All Other Intersegment Eliminations Total Insurance and other services revenues $ 126,589 $ 6,731 $ (2,178 ) $ 131,142 Investment income 6,146 642 (210 ) 6,578 Net realized gain on investments 645 123 — 768 Total revenues $ 133,380 $ 7,496 $ (2,388 ) $ 138,488 Operating expenses 105,882 6,583 (2,108 ) 110,357 Income before income taxes $ 27,498 $ 913 $ (280 ) $ 28,131 Total assets $ 183,764 $ 45,174 $ — $ 228,938 |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders’ Equity On November 12, 2002, the Company’s Board of Directors amended the Company’s Articles of Incorporation, creating a series of preferred stock designated Series A Junior Participating Preferred Stock (the “Series A Preferred Stock”). The Series A Preferred Stock is senior to common stock in dividends or distributions of assets upon liquidations, dissolutions or winding up of the Company. Dividends on the Series A Preferred Stock are cumulative and accrue from the quarterly dividend payment date. Each share of Series A Preferred Stock entitles the holder thereof to 100 votes on all matters submitted to a vote of shareholders of the Company. These shares were reserved for issuance under the Shareholder Rights Plan (the “Plan”), which was adopted on November 21, 2002, by the Company’s Board of Directors. Under the terms of the Plan, the Company’s common stock acquired by a person or a group buying 15% or more of the Company’s common stock would be diluted, except in transactions approved by the Board of Directors. In connection with the Plan, the Company’s Board of Directors declared a dividend distribution of one right (a “Right”) for each outstanding share of the Company’s common stock paid on December 16, 2002, to shareholders of record at the close of business on December 2, 2002. Each Right entitles the registered holder to purchase from the Company a unit (a “Unit”) consisting of one one-hundredth of a share of Series A Preferred Stock. Under the Plan, the Rights detach and become exercisable upon the earlier of (a) 10 days following public announcement that a person or group of affiliated or associated persons has acquired, or obtained the right to acquire, beneficial ownership of 15% or more of the outstanding shares of the Company’s common stock, or (b) 10 business days following the commencement of, or first public announcement of the intent of a person or group to commence, a tender offer or exchange offer that would result in a person or group beneficially owning 15% or more of such outstanding shares of the Company’s common stock. The exercise price, the kind and the number of shares covered by each right are subject to adjustment upon the occurrence of certain events described in the Plan. If any person or group of affiliated or associated persons acquires beneficial ownership of 15% or more of the outstanding common stock, each holder of a Right (other than the acquiring person or group) will have the right to buy, at the exercise price, common stock of the Company having a market value of twice the exercise price. If the Company is acquired in a merger or consolidation in which the Company is not the surviving corporation, or the Company engages in a merger or consolidation in which the Company is the surviving corporation and the Company’s common stock is changed or exchanged, or more than 50% of the Company’s assets or earning power is sold or transferred, the Rights entitle a holder (other than the acquiring person or group) to buy, at the exercise price, stock of the acquiring company having a market value equal to twice the exercise price. At any time after a person or group of affiliated or associated persons has acquired beneficial ownership of 15% or more of the outstanding common stock and prior to the acquisition by such person or group of 50% or more of the outstanding common stock, the Company’s Board of Directors may exchange the Rights (other than the Rights owned by such person or group), in whole or in part, at an exchange ratio of one share of the Company’s common stock, or one one-hundredth of a share of Series A Preferred Stock, per Right. The Rights are redeemable upon action by the Board of Directors at a price of $0.01 per right at any time before they become exercisable. Until the Rights become exercisable, they are evidenced only by the common stock certificates and are transferred with and only with such certificates. On October 31, 2012, the Plan was amended to, among other things, extend the expiration date of the plan from November 11, 2012 to October 31, 2022 and increase the exercise price of the stock purchase rights from $80 per unit to $220 per unit. In connection with the amendments to the Plan, the Board of Directors of the Company also amended the Company’s Articles of Incorporation to increase the number of shares designated under the rights plan as Series A Preferred Stock from 100 thousand shares to 200 thousand shares. There were 1.0 million shares of Preferred Stock authorized as of December 31, 2018 and 2017 , with 200 thousand being designated Series A Preferred Stock. |
Concentration of Credit Risk
Concentration of Credit Risk | 12 Months Ended |
Dec. 31, 2018 | |
Risks and Uncertainties [Abstract] | |
Concentration of Credit Risk | Concentration of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents. The Company invests its cash and cash equivalents into high credit quality security instruments. Deposits which exceed $250 thousand at each institution are not insured by the Federal Deposit Insurance Corporation (“FDIC”). Of the $18.7 million in cash and cash equivalents at December 31, 2018 , $17.6 million was not insured by the FDIC. Of the $20.2 million in cash and cash equivalents at December 31, 2017 , $19.3 million was not insured by the FDIC. The Company mitigates the risk of having cash and cash equivalents not insured by the FDIC by monitoring the credit quality of the financial institutions in which the funds are held. |
Business Concentration
Business Concentration | 12 Months Ended |
Dec. 31, 2018 | |
Risks and Uncertainties [Abstract] | |
Business Concentration | Business Concentration The Company generates a significant amount of title insurance premiums in North Carolina, Texas and South Carolina. In 2018 , 2017 and 2016 , these states generated the following percentage of total title premiums: State 2018 2017 2016 North Carolina 40.3 % 37.8 % 35.0 % Texas 18.5 % 18.9 % 19.7 % South Carolina 10.2 % 10.5 % 10.3 % |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions The Company does business with, and has investments in, unconsolidated limited liability companies that are primarily title insurance agencies. The Company utilizes the equity method to account for its investments in these limited liability companies. The following table sets forth the approximate values by year found within each financial statement classification: Financial Statement Classification, Consolidated Balance Sheets (in thousands) 2018 2017 Other investments $ 5,847 $ 6,594 Premiums and fees receivable $ 409 $ 720 Financial Statement Classification, Consolidated Statements of Income (in thousands) 2018 2017 2016 Net premiums written $ 13,960 $ 14,645 $ 15,318 Non-title services and other investment income $ 2,444 $ 2,240 $ 2,317 Commissions to agents $ 9,259 $ 9,864 $ 10,394 |
Business Combinations, Intangib
Business Combinations, Intangible Assets and Goodwill | 12 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
Acquisition | Intangible Assets The estimated fair values of intangible assets recognized as the result of title insurance agency acquisitions, all Level 3 inputs, are principally based on values obtained from a third-party valuation service. In accordance with ASC 350, Intangibles – Goodwill and Other , management determined that no events or changes in circumstances occurred during 2018 that would indicate that carrying amounts may not be recoverable, and therefore determined that no identifiable intangible assets were impaired during 2018. Net identifiable intangible assets of $154 thousand were impaired during 2017. Identifiable intangible assets consist of the following as of December 31: Year Ended (in thousands) 2018 2017 Referral relationships $ 6,416 $ 6,416 Non-complete agreements 1,406 1,406 Tradename 560 560 Total 8,382 8,382 Accumulated amortization (1,952 ) (1,375 ) Identifiable intangible assets, net $ 6,430 $ 7,007 The following table provides the estimated aggregate amortization expense for each of the five succeeding fiscal years: Year Ended (in thousands) 2019 $ 504 2020 569 2021 562 2022 525 2023 525 Thereafter 3,745 Total $ 6,430 Goodwill and Title Plant As of December 31, 2018 , the Company has reported $4.4 million in goodwill and $690 thousand in a title plant, net of impairments, as the result of title agency acquisitions. The title plant is included with other assets in the Consolidated Balance Sheets. The estimated fair values of goodwill and the title plant, both Level 3 inputs, are principally based on values obtained from a third-party valuation service at the time of acquisition. In accordance with ASC 350, Intangibles – Goodwill and Other , management determined that no events or changes in circumstances occurred during 2018 that would indicate the carrying amounts may not be recoverable, and therefore concluded that neither goodwill nor the title plant were impaired during 2018. Goodwill of $29 thousand was impaired during 2017. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 12 Months Ended |
Dec. 31, 2018 | |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Income The following tables provide changes in the balances of each component of accumulated other comprehensive income, net of tax, for the periods ended December 31, 2018 , 2017 and 2016 : 2018 (in thousands) Unrealized Gains and Losses On Available-for-Sale Securities Postretirement Benefits Plans Total Beginning balance at January 1 $ 16,003 $ (58 ) $ 15,945 Cumulative-effect adjustment for adoption of new accounting standards (13,616 ) (11 ) (13,627 ) Other comprehensive loss before reclassifications (1,499 ) 37 (1,462 ) Amounts reclassified from accumulated other comprehensive income 93 — 93 Net current-period other comprehensive loss (1,406 ) 37 (1,369 ) Ending balance $ 981 $ (32 ) $ 949 2017 (in thousands) Unrealized Gains and Losses On Available-for-Sale Securities Postretirement Benefits Plans Total Beginning balance at January 1 $ 11,871 $ (110 ) $ 11,761 Other comprehensive income before reclassifications 4,922 46 4,968 Amounts reclassified from accumulated other comprehensive income (790 ) 6 (784 ) Net current-period other comprehensive income 4,132 52 4,184 Ending balance $ 16,003 $ (58 ) $ 15,945 2016 (in thousands) Unrealized Gains and Losses On Available-for-Sale Securities Postretirement Benefits Plans Total Beginning balance at January 1 $ 11,598 $ (115 ) $ 11,483 Other comprehensive income before reclassifications 758 — 758 Amounts reclassified from accumulated other comprehensive income (485 ) 5 (480 ) Net current-period other comprehensive income 273 5 278 Ending balance $ 11,871 $ (110 ) $ 11,761 The following tables provide significant amounts reclassified out of each component of accumulated other comprehensive income for the periods ended December 31, 2018 , 2017 and 2016 : 2018 (in thousands) Details about Accumulated Other Comprehensive Income Components Amount Reclassified from Accumulated Other Comprehensive Income Affected Line Item in the Consolidated Statements of Income Unrealized gains and losses on available-for-sale securities: Net realized loss on investment $ (117 ) Other-than-temporary impairments — Total $ (117 ) Net realized (loss) gain on investments Tax 24 Provision for Income Taxes Net of Tax $ (93 ) Amortization related to postretirement benefit plans: Prior year service cost $ — Unrecognized loss — Total $ — (a) Tax — Provision for Income Taxes Net of Tax $ — Reclassifications for the period $ (93 ) 2017 (in thousands) Details about Accumulated Other Amount Reclassified from Affected Line Item in the Consolidated Unrealized gains and losses on available-for-sale securities: Net realized gain on investment $ 1,227 Other-than-temporary impairments (26 ) Total $ 1,201 Net realized (loss) gain on investments Tax (411 ) Provision for Income Taxes Net of Tax $ 790 Amortization related to postretirement benefit plans: Prior year service cost $ — Unrecognized loss (9 ) Total $ (9 ) (a) Tax 3 Provision for Income Taxes Net of Tax $ (6 ) Reclassifications for the period $ 784 2016 (in thousands) Details about Accumulated Other Amount Reclassified from Affected Line Item in the Consolidated Unrealized gains and losses on available-for-sale securities: Net realized gain on investment $ 973 Other-than-temporary impairments (234 ) Total $ 739 Net realized (loss) gain on investments Tax (254 ) Provision for Income Taxes Net of Tax $ 485 Amortization related to postretirement benefit plans: Prior year service cost $ — Unrecognized loss (9 ) Total $ (9 ) (a) Tax 4 Provision for Income Taxes Net of Tax $ (5 ) Reclassifications for the period $ 480 (a) These accumulated other comprehensive income components are not reclassified to net income in their entirety in the same reporting period. The amounts are presented within salaries, employee benefits and payroll taxes on the Consolidated Statements of Income as amortized. Amortization related to postretirement benefit plans is included in the computation of net periodic pension costs, as discussed in Note 10. |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) . ASU 2014-09 updated guidance to improve the comparability of revenue recognition practices for entities that enter into contracts with customers to transfer goods or services or enter into contracts for the transfer of nonfinancial assets, unless those contracts are within the scope of other standards such as insurance contracts or lease standards. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The Company adopted this update on January 1, 2018 with no impact on the Company's financial position and results of operations. The new revenue guidance does not apply to revenue associated with insurance contracts (including title insurance policies), financial instruments and lease contracts. The new revenue standard therefore is primarily applicable to the following Company revenue categories. Escrow and other title-related fees. The Company’s title segment recognizes commission revenue and fees related to items such as searches, settlements, commitments and other ancillary services. Escrow and other title-related fees are recognized as revenue at the time of the related transactions as the earnings process, or performance obligation, is then considered to be complete. Non-title services. Through various subsidiaries, the Company offers management services, tax-deferred real property exchange services, investment management and trust services. Nonrefundable exchange fees are recognized as revenue upon receipt of the funds, which is at the time of closing of the initial sale of property. All other non-title service fees are recognized as revenue as performance obligations are completed. Other. The Company occasionally recognizes revenue from other miscellaneous contracts which can include, but is not limited to, seminar and education registration fees and software licensing contracts. These revenue streams are deemed immaterial to the operations of the Company, and revenue is recognized when, or as, performance obligations are completed. The following table provides a breakdown of the Company’s revenue by major business activity: (in thousands) 2018 2017 2016 Revenue from contracts with customers: Escrow and other title-related fees $ 7,096 $ 6,892 $ 2,532 Non-title services 7,082 6,128 5,651 Total revenue from contracts with customers 14,178 13,020 8,183 Other sources of revenue: Net premiums written 138,125 140,502 122,522 Investment related revenue 3,486 7,645 7,346 Other 470 460 437 Total Revenues $ 156,259 $ 161,627 $ 138,488 |
Schedule I
Schedule I | 12 Months Ended |
Dec. 31, 2017 | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Abstract] | |
Summary of Investments - Other than Investments in Related Parties | SUMMARY OF INVESTMENTS – OTHER THAN INVESTMENTS IN RELATED PARTIES AS OF DECEMBER 31, 2018 Type of Investment (in thousands) Cost (1) Market Value Amount at which shown in the Balance Sheet (2) Fixed maturity securities: Government obligation $ 1,023 $ 1,016 $ 1,016 General obligations of U.S. states, territories and political subdivisions 19,310 19,396 19,396 Special revenue issuer obligations of U.S. states, territories and political subdivisions 41,333 42,182 42,182 Public utilities 15,550 15,609 15,609 Corporate debt securities 10,498 10,754 10,754 Total fixed maturity securities 87,714 88,957 88,957 Equity securities: Common stocks: Public utilities 303 444 444 Banks, trusts and insurance companies 3,195 5,813 5,813 Industrial, miscellaneous and all other 24,930 35,708 35,708 Technology 2,827 6,524 6,524 Total equity securities 31,255 48,489 48,489 Other investments: Short-term investments 32,787 32,787 32,787 Other investments (3) 11,293 11,293 11,293 Total other investments 44,080 44,080 44,080 Total investments (3) $ 163,049 $ 181,526 $ 181,526 (1) Fixed maturity securities are shown at amortized cost and equity securities are shown at original cost. (2) All fixed maturity securities presented are classified as available-for-sale and shown at estimated fair value. Equity securities are shown at fair value. (3) The above summary of investments does not include investments in related parties accounted for under the cost and equity methods of accounting in the amount of $1,143 . |
Schedule II
Schedule II | 12 Months Ended |
Dec. 31, 2018 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Financial Information of Parent Company Only Disclosure [Text Block] | CONDENSED FINANCIAL INFORMATION OF REGISTRANT BALANCE SHEETS AS OF DECEMBER 31, 2018 AND 2017 (in thousands) 2018 2017 Assets Cash and cash equivalents $ 1,540 $ 5,872 Fixed maturity securities, available-for-sale, at fair value 16,947 22,714 Equity securities, at fair value 3,360 3,692 Short-term investments 9,358 5,809 Investments in affiliated companies 134,551 128,580 Other investments 5,151 5,167 Prepaid expenses and other receivables 1,846 1,724 Current income taxes receivable 2,438 3,879 Accrued interest and dividends 186 198 Property, net 2,499 2,254 Total Assets $ 177,876 $ 179,889 Liabilities and Stockholders’ Equity Liabilities: Accounts payable and accrued liabilities $ 2,190 $ 1,916 Deferred income taxes, net 47 137 Total liabilities 2,237 2,053 Stockholders’ Equity: Preferred stock (1,000 authorized shares; no shares issued) — — Common stock – no par value (10,000 authorized shares; 1,887 and 1,886 shares issued and outstanding as of December 31, 2018 and December 31, 2017, respectively, excluding in each period 292 shares of common stock held by the Company) — — Retained earnings 174,690 161,891 Accumulated other comprehensive income 949 15,945 Total stockholders’ equity 175,639 177,836 Total Liabilities and Stockholders’ Equity $ 177,876 $ 179,889 Refer to the Notes to Condensed Financial Statements. CONDENSED FINANCIAL INFORMATION OF REGISTRANT STATEMENTS OF INCOME FOR THE YEARS ENDED DECEMBER 31, 2018 , 2017 AND 2016 (in thousands, except per share amounts) 2018 2017 2016 Revenues: Interest and dividends $ 668 $ 502 $ 525 Net realized gain on investments 27 36 78 Net unrealized loss on equity investments (384 ) — — Rental income 842 813 772 Miscellaneous income 930 220 77 Total Revenues 2,083 1,571 1,452 Operating Expenses: Personnel expenses 1,085 1,004 667 Office and technology expenses 355 349 366 Other expenses 892 763 775 Total Operating Expenses 2,332 2,116 1,808 Equity in Net Income of Affiliated Companies 22,014 25,634 19,665 Income before Income Taxes 21,765 25,089 19,309 Income Tax Benefit (94 ) (612 ) (206 ) Net Income 21,859 25,701 19,515 Net Loss Attributable to Noncontrolling Interests 33 6 8 Net Income Attributable to the Company $ 21,892 $ 25,707 $ 19,523 Basic Earnings per Common Share $ 11.60 $ 13.63 $ 10.23 Weighted Average Shares Outstanding – Basic 1,887 1,886 1,908 Diluted Earnings per Common Share $ 11.54 $ 13.56 $ 10.19 Weighted Average Shares Outstanding – Diluted 1,897 1,896 1,915 Refer to the Notes to Condensed Financial Statements. CONDENSED FINANCIAL INFORMATION OF REGISTRANT STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2018 , 2017 AND 2016 (in thousands) 2018 2017 2016 Operating Activities Net income $ 21,859 $ 25,701 $ 19,515 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Equity in net earnings of subsidiaries (22,014 ) (25,634 ) (19,665 ) Depreciation 98 98 93 Amortization, net 222 158 164 Share-based compensation expense related to stock appreciation rights and options 327 219 132 Net loss on disposals of property — 3 — Net realized gain on investments (27 ) (36 ) (78 ) Net unrealized loss on equity investments 384 — — Net (earnings) loss from other investments (81 ) 5 (13 ) Benefit for deferred income taxes (51 ) (211 ) (18 ) (Increase) decrease in receivables (122 ) 362 1,037 Decrease (increase) in income taxes receivable 1,441 (1,316 ) (797 ) Decrease (increase) in other assets 12 (112 ) 34 Increase (decrease) in accounts payable and accrued liabilities 274 (455 ) (896 ) Net cash provided by (used in) operating activities 2,322 (1,218 ) (492 ) Investing Activities Purchase of subsidiary — — (10,918 ) Dividends received from subsidiaries 15,125 14,816 17,331 Purchases of debt and equity securities (476 ) (13,178 ) (1,783 ) Purchases of short-term securities (33,835 ) (5,835 ) (3,162 ) Purchases of and net earnings from other investments (579 ) (1,050 ) (1,553 ) Proceeds from sales and maturities of debt and equity securities 5,753 6,617 6,816 Proceeds from sales and maturities of short-term securities 30,403 3,189 3,005 Proceeds from sales and distributions of other investments 669 196 322 Proceeds from sales of other assets 1 — — Purchases of property (343 ) (14 ) (145 ) Net cash provided by investing activities 16,718 4,741 9,913 Financing Activities Repurchases of common stock (29 ) (246 ) (6,220 ) Exercise of stock appreciation rights (1 ) — — Proceeds from note payable — — 6,000 Payments on note payable — — (6,000 ) Capital contribution to subsidiary (325 ) (510 ) — Dividends paid (23,017 ) (7,073 ) (1,370 ) Net cash used in financing activities (23,372 ) (7,829 ) (7,590 ) Net (Decrease) Increase in Cash and Cash Equivalents (4,332 ) (4,306 ) 1,831 Cash and Cash Equivalents, Beginning of Period 5,872 10,178 8,347 Cash and Cash Equivalents, End of Period $ 1,540 $ 5,872 $ 10,178 Supplemental Disclosures: Income tax payments, net $ 5,448 $ 11,447 $ 4,964 Refer to the Notes to Condensed Financial Statements. CONDENSED FINANCIAL INFORMATION OF REGISTRANT NOTES TO THE CONDENSED FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2018 , 2017 AND 2016 (in thousands) 1. The accompanying Condensed Financial Statements should be read in conjunction with the Consolidated Financial Statements and notes thereto of Investors Title Company and Subsidiaries. 2. Cash dividends paid to Investors Title Company by its wholly owned subsidiaries were as follows: Subsidiaries 2018 2017 2016 Investors Title Insurance Company, net* $ 12,749 $ 13,236 $ 15,838 Investors Title Exchange Corporation 500 300 100 Investors Title Accommodation Corporation 40 80 45 Investors Capital Management Company — — — Investors Trust Company 200 200 750 Investors Title Commercial Agency, LLC 750 150 125 National Investors Holdings, LLC 886 850 473 Total $ 15,125 $ 14,816 $ 17,331 * Total dividends of $16,307 , $14,330 and $16,048 paid to the Parent Company in 2018 , 2017 and 2016 , respectively, netted with dividends of $3,558 , $1,094 and $210 received from the Parent Company in 2018 , 2017 and 2016 , respectively. |
Schedule III
Schedule III | 12 Months Ended |
Dec. 31, 2018 | |
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Abstract] | |
Supplementary Insurance Information | SUPPLEMENTARY INSURANCE INFORMATION FOR THE YEARS ENDED DECEMBER 31, 2018 , 2017 AND 2016 Segment Deferred Policy Acquisition Cost Future Policy Benefits, Losses, Claims and Loss Expenses Unearned Premiums Other Policy Claims and Benefits Payable Premium Revenue Net Investment Income Benefits, Claims. Losses and Settlement Expenses Amortization of Deferred Policy Acquisition Costs Other Operating Expenses Premiums Written Year Ended December 31, 2018 (in thousands) Title Insurance $ — $ 31,729 $ — $ 459 $ 138,125 $ 2,542 $ (332 ) $ — $ 121,207 N/A All Other — — — — — 1,054 — — 8,315 N/A $ — $ 31,729 $ — $ 459 $ 138,125 $ 3,596 $ (332 ) $ — $ 129,522 N/A Year Ended December 31, 2017 (in thousands) Title Insurance $ — $ 34,801 $ — $ 537 $ 140,502 $ 5,834 $ 3,311 $ — $ 120,225 N/A All Other — — — — — 770 — — 7,820 N/A $ — $ 34,801 $ — $ 537 $ 140,502 $ 6,604 $ 3,311 $ — $ 128,045 N/A Year Ended December 31, 2016 (in thousands) Title Insurance $ — $ 35,305 $ — $ 476 $ 122,522 $ 5,936 $ 243 $ — $ 103,581 N/A All Other — — — — — 642 — — 6,533 N/A $ — $ 35,305 $ — $ 476 $ 122,522 $ 6,578 $ 243 $ — $ 110,114 N/A |
Schedule IV
Schedule IV | 12 Months Ended |
Dec. 31, 2018 | |
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Abstract] | |
Reinsurance | REINSURANCE FOR THE YEARS ENDED DECEMBER 31, 2018 , 2017 AND 2016 Gross Amount Ceded to Other Companies Assumed from Other Companies Net Amount Percentages of Amount Assumed to Net Year Ended December 31, 2018 (in thousands) Title Insurance $ 138,448 $ 327 $ 4 $ 138,125 — % Year Ended December 31, 2017 (in thousands) Title Insurance $ 140,763 $ 264 $ 3 $ 140,502 — % Year Ended December 31, 2016 (in thousands) Title Insurance $ 122,646 $ 141 $ 17 $ 122,522 0.01 % |
Schedule V
Schedule V | 12 Months Ended |
Dec. 31, 2018 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Valuation and Qualifying Accounts | VALUATION AND QUALIFYING ACCOUNTS FOR THE YEARS ENDED DECEMBER 31, 2018 , 2017 AND 2016 Description Balance at Beginning of Period Additions Charged to Costs and Expenses Additions Charge to Other Accounts – Describe Deductions – Describe Balance at End of Period 2018 (in thousands) Premiums receivable: Valuation provision $ 376 $ 4,086 $ — $ (4,158 ) (a) $ 304 Reserves for claims $ 34,801 $ (332 ) $ — $ (2,740 ) (b) $ 31,729 2017 (in thousands) Premiums receivable: Valuation provision $ 372 $ 5,784 $ — $ (5,780 ) (a) $ 376 Reserves for claims $ 35,305 $ 3,311 $ — $ (3,815 ) (b) $ 34,801 2016 (in thousands) Premiums receivable: Valuation provision $ 3,553 $ 2,679 $ — $ (5,860 ) (a) $ 372 Reserves for claims $ 37,788 $ 243 $ — $ (2,726 ) (b) $ 35,305 (a) Canceled premiums (b) Payments of claims, net of recoveries |
Basis Of Presentation and Sig_2
Basis Of Presentation and Significant Accounting Policies (Policy) | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Principles of Consolidation and Basis of Presentation | Principles of Consolidation and Basis of Presentation: The accompanying Consolidated Financial Statements include the accounts and operations of Investors Title Company and its subsidiaries, and have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”). Earnings attributable to noncontrolling interests in majority-owned insurance agencies are recorded in the Consolidated Statements of Income. Noncontrolling interests representing the portion of equity not related to the Company's ownership interests are recorded in separate sections of the Consolidated Balance Sheets. All intercompany balances and transactions have been eliminated in consolidation. |
Reclassifications | Reclassifications: Certain prior year amounts have been reclassified for consistency with the current period presentation. The primary change was the presentation of revenue and operating expenses. Revenue other than title premiums are now presented in more detail than previously provided. Presentation of operating expenses has also been modified. These reclassifications had no effect on the reported results of operations. |
Cash and Cash Equivalents | Cash and Cash Equivalents For the purpose of presentation in the Company’s Consolidated Statements of Cash Flows, cash equivalents are highly liquid instruments with remaining original maturities of three months or less. The carrying amount of cash and cash equivalents is a reasonable estimate of fair value due to the short-term maturity at purchase of these instruments. |
Investments in Securities | Investments in Securities Investments in Fixed Maturity Securitie s: Fixed maturity securities are classified as available-for-sale and reported at fair value with unrealized gains and losses, net of tax and adjusted for other-than-temporary declines in fair value, and reported as accumulated other comprehensive income. Securities are regularly reviewed for differences between the cost and estimated fair value of each security for factors that may indicate that a decline in fair value is other-than-temporary. Some factors considered in evaluating whether or not a decline in fair value is other-than-temporary include the duration and extent to which the fair value has been less than cost and the Company’s ability and intent to retain the investment for a period of time sufficient to allow for a recovery in value. Such reviews are inherently uncertain and the value of the investment may not fully recover or may decline in future periods resulting in a realized loss. Realized gains and losses are determined on the specific identification method. Refer to Note 3 for further information about the Company’s investments in fixed maturity securities. Investments in Equity Securities: Equity securities represent ownership interests held by the Company in entities for investment purposes. Prior to January 1, 2018, these equity securities were classified as available-for-sale and were carried at fair value on the Company’s Consolidated Balance Sheets. Unrealized holding gains and losses from changes in the fair values of available-for-sale equity securities were reported in accumulated other comprehensive income. Effective January 1, 2018, unrealized holding gains and losses are reported in the Consolidated Statements of Income as a net unrealized gain or loss on equity securities. As a result, other-than-temporary impairments will no longer be considered for equity securities. Realized investment gains and losses from sales are recorded on the trade date and are determined using the specific identification method. Refer to Note 3 for further information about the Company’s investments in equity securities. |
Other Investments | Other Investments Other investments consist of investments in unconsolidated affiliated entities, typically structured as limited liability companies ("LLC's"), without readily determinable fair values. Other investments are accounted for under either the equity method or the measurement alternative method. The measurement alternative method is used when an investment does not qualify for the equity method or the practical expedient in Accounting Standards Codification (“ASC”) Topic 820, which estimates fair value using the net asset value per share. Under the measurement alternative method, investments are recorded at cost, less any impairment and plus or minus any changes resulting from observable price changes in orderly transactions for an identical or similar investment of the same issuer. The aggregate cost of the Company’s cost method investments totaled $6.6 million and $5.4 million at December 31, 2018 and 2017 , respectively. The Company monitors any events or changes in circumstances that may have had a significant adverse effect on the fair value of these investments and makes any necessary adjustments. |
Short-term Investments | Short-term Investments Short-term investments are comprised of money market accounts which are invested in short-term funds, commercial paper, certificates of deposit, and other investments expected to have maturities or redemptions greater than three months and less than twelve months. The Company monitors any events or changes in circumstances that may have a significant adverse effect on the fair value of these investments. |
Property Acquired in Settlement of Claims | Property Acquired in Settlement of Claims Property acquired in settlement of claims is held for sale and valued at the lower of cost or market. Adjustments to reported estimated realizable values and realized gains or losses on dispositions are recorded as increases or decreases in claim costs. Properties acquired in settlement of claims are included in other assets in the Consolidated Balance Sheets. |
Property and Equipment | Property and Equipment Property and equipment are recorded at cost and are depreciated principally under the straight-line method over the estimated useful lives ( 3 to 25 years) of the respective assets. Maintenance and repairs are charged to operating expenses and improvements are capitalized. |
Reserves for Claims | Reserve for Claims The total reserve for all reported and unreported losses the Company incurred through December 31, 2018 is represented by the reserve for claims. The Company’s reserve for unpaid losses and loss adjustment expenses is established using estimated amounts required to settle claims for which notice has been received (reported) and the amount estimated to be required to satisfy incurred claims of policyholders which may be reported in the future (incurred but not reported, or “IBNR”). Despite the variability of such estimates, management believes that the reserve is adequate to cover claim losses resulting from pending and future claims for policies issued through December 31, 2018 . The Company continually reviews and adjusts its reserve estimates as necessary to reflect its loss experience and any new information that becomes available. Adjustments resulting from such reviews may be significant. Claims and losses paid are charged to the reserve for claims. Although claims losses are typically paid in cash, occasionally claims are settled by purchasing the interest of the insured or the claimant in the real property. When this event occurs, the acquiring company carries assets at the lower of cost or estimated realizable value, net of any indebtedness on the property. |
Income Taxes | Income Taxes The Company makes certain estimates and judgments in determining income tax expense (benefit) for financial statement purposes. These estimates and judgments occur in the calculation of certain tax assets and liabilities which arise from differences in the timing of recognition of revenue and expense for tax and financial statement purposes. The Company provides for deferred income taxes (benefits) for the tax consequences in future years of temporary differences between the financial statements’ carrying values and the tax bases of assets and liabilities using currently enacted tax rates. The Company establishes a valuation allowance if it believes that it is more likely than not that some or all of its deferred tax assets will not be realized. Refer to Note 8 for further information regarding income taxes. |
Premiums Written and Commissions to Agents | Premiums Written and Commissions to Agents Generally, title insurance premiums are recognized at the time of settlement of the related real estate transaction, as the earnings process is then considered complete, irrespective of the timing of issuance of a title insurance policy or commitment. Expenses typically associated with premiums, including agent commissions, premium taxes, and a provision for future claims are recognized concurrent with recognition of related premium revenue. |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts Company management continually evaluates the collectability of receivables and provides an allowance for doubtful accounts equal to estimated losses expected to be incurred in the collection of premiums and fees receivable. Changes to the allowance for doubtful accounts are reflected within net premiums written in the Consolidated Statements of Income. Amounts are charged off in the period they are deemed to be uncollectible. Quarterly, the Company evaluates the collectability of receivables. Premiums not collected within 7 months are fully reserved. Write-offs of receivables have not been material to the Company. |
Exchange Services Revenue | Exchange Services Revenue Fees are recognized at the signing of a binding agreement and investment earnings are recognized as they are earned. Exchange services revenue is included in non-title services in the Consolidated Statements of Income. |
Fair Values of Financial Instruments | Fair Values of Financial Instruments The carrying amounts reported in the Consolidated Balance Sheets for cash and cash equivalents, short-term investments, premium and fees receivable, accrued interest and dividends, accounts payable, commissions payable, reinsurance payable and current income taxes recoverable/payable approximate fair value due to the short-term nature of these assets and liabilities. Estimated fair values for the majority of investment securities are based on quoted market prices. Refer to Note 3 for further information regarding investments in securities and fair value. |
Comprehensive Income | Comprehensive Income The Company’s accumulated other comprehensive income is comprised of unrealized holding gains/losses on available-for-sale securities, net of tax, and unrecognized prior service cost and unrealized gains/losses associated with postretirement benefit liabilities, net of tax. Accumulated other comprehensive income as of December 31, 2018 consists of $981 thousand of unrealized holding gains on available-for-sale securities and $32 thousand of unrecognized actuarial losses associated with postretirement benefit liabilities. Accumulated other comprehensive income as of December 31, 2017 consists of $16.0 million of unrealized holding gains on available-for-sale securities and $58 thousand of unrecognized actuarial losses associated with postretirement benefit liabilities. Accumulated other comprehensive income as of December 31, 2016 consists of $11.9 million of unrealized holding gains on available-for-sale securities and $110 thousand of unrecognized actuarial losses associated with postretirement benefit liabilities. |
Share-Based Compensation | Share-Based Compensation The Company accounts for share-based compensation in accordance with the fair value based principles required by the Financial Accounting Standards Board (“FASB”). Share-based compensation cost is generally measured at the grant date, based on the estimated fair value of the award, and is recognized as an expense over the employee’s requisite service period. As the share-based compensation expense recognized in the Consolidated Statements of Income is based on awards ultimately expected to vest, it has been reduced for estimated forfeitures. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. |
Goodwill and Other Intangible Assets | Goodwill Goodwill represents the excess of cost over fair value of identifiable net assets acquired and assumed in a business combination. The fair value of the Company’s goodwill at acquisition is principally based on values obtained from a third-party valuation service. Goodwill is reviewed for impairment at least annually, or when events or changes in circumstances indicate the carrying value may not be recoverable. When evaluating whether goodwill is impaired, the Company determines through qualitative analysis whether relevant events and circumstances indicate that it is more likely than not that goodwill balances are impaired as of the testing date. If the qualitative analysis does not indicate that an impairment of goodwill is more likely than not, then no other specific quantitative impairment testing is required. If it is determined that it is more likely than not that an impairment exists, the Company performs a quantitative assessment whereby a discounted cash flow analysis is utilized to determine an estimated fair value. The estimated fair value is compared to the carrying value of goodwill as of the measurement date. The discounted cash flows used in estimating fair value are dependent on a number of significant assumptions, and therefore estimated fair value measurements are subject to change given the inherent uncertainty in predicting future results and cash flows. Other Intangible Assets The Company’s other intangible assets consist of non-compete agreements, referral relationships and a tradename resulting from agency acquisitions; all of which are recorded at the acquisition date fair value. The fair value of the Company’s other intangible assets is principally based on values obtained from a third-party valuation service. These assets are amortized on a straight-line basis over their useful lives, which range from 1 to 30 years; noting that the amortization of certain non-compete contracts will start at a future date when the related employment agreements are terminated. Other intangible assets are reviewed for impairment at least annually or when events or changes in circumstances indicate the carrying value may not be recoverable. |
Title Plant | Title Plants Title plants represent a historical record of matters affecting title to parcels of land in a particular geographic area. Title plants are recorded at the cost incurred to construct or obtain and organize historical title information to the point it can be used to perform title searches. Costs incurred to maintain, update and operate title plants are expensed as incurred. Title plants are not amortized as they are considered to have an indefinite life with no diminishment of value if properly maintained; but are subject to impairment evaluation, which the Company performs on at least an annual basis. |
Subsequent Events | Subsequent Events The Company has evaluated and concluded that there were no material subsequent events requiring adjustment or disclosure to its Consolidated Financial Statements. |
Recently Issued Accounting Standards | Recently Adopted Accounting Standards In February 2018, the FASB issued Accounting Standards Update ("ASU") 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income . ASU 2018-02 is intended to help organizations reclassify certain stranded income tax effects in accumulated other comprehensive income resulting from the Tax Cuts and Jobs Act (“TCJA”). Under the ASU, entities have the option to reclassify tax effects from the TCJA within other comprehensive income to retained earnings in each period in which the effect of the change in the federal corporate tax rate under the TCJA is recorded. The update is effective for annual periods beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption is permitted. The Company adopted this update on January 1, 2018 by means of a $3.1 million cumulative-effect reclassification between retained earnings and accumulated other comprehensive income. The update had no material impact on the Company's financial position and results of operations. In March 2017, the FASB issued ASU 2017-07, Compensation - Retirement Benefits (Topic 715) . This update requires entities to (1) disaggregate the current service cost component from the other components of net benefit cost (the "other components") and present it with other current compensation costs for related employees in the income statement and (2) present the other components elsewhere in the income statement and outside of income from operations if that subtotal is presented. In addition, the ASU requires entities to disclose the income statement lines that contain the other components if they are not presented on appropriately described separate lines. The update was effective for annual periods beginning after December 15, 2017, and interim periods within those fiscal years. The Company adopted this update on January 1, 2018 with no material impact on the Company’s financial position and results of operations. In January 2016, the FASB issued ASU 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities . ASU 2016-01 updated guidance to enhance the reporting model for financial instruments. Among the main principles of the guidance applicable to the Company are provisions to: (1) require equity investments, except those accounted for under the equity method of accounting or those that result in consolidation of the investee, to be measured at fair value with changes in fair value recognized in net income; (2) simplify the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment, noting that when a qualitative assessment indicates that impairment exists, an entity is required to measure the investment at fair value; (3) eliminate the requirement to disclose methods and significant assumptions used to estimate the fair value for financial instruments measured at amortized cost; (4) require entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes; (5) require separate presentation of financial assets and financial liabilities by measuring category and form of financial asset on the balance sheet or accompanying notes to the financial statements; and (6) clarify that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with the entity’s other deferred tax assets. The update was effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company adopted this update on January 1, 2018 by means of a $16.8 million cumulative-effect reclassification of the net unrealized gain related to equity securities from accumulated other comprehensive income to retained earnings. The amendments relating to equity securities without readily determinable fair values were applied prospectively to equity investments that existed as of the date of adoption. As a result, the Company recognized a $4.1 million net unrealized loss on equity investments in the Consolidated Statements of Income as of December 31, 2018 . In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) . ASU 2014-09 updated guidance to improve the comparability of revenue recognition practices for entities that either enter into contracts with customers to transfer goods or services or enter into contracts for the transfer of nonfinancial assets, unless those contracts are within the scope of other standards such as insurance contracts or lease standards. As the ASU does not apply to the Company's core title insurance business, its potential effect is limited to the Company's other lines of business. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. For public entities, this update originally became effective for interim and annual reporting periods beginning after December 15, 2016. In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date . ASU 2015-14 updated guidance to defer the effective date of the standard by one year. The Company adopted this update using the modified retrospective transition approach on January 1, 2018 with no impact on the Company's financial position and results of operations. Refer to Note 19 for further information regarding the Company's revenue from contracts with customers. Recently Issued Accounting Standards In March 2017, the FASB issued ASU 2017-08, Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities. ASU 2017-08 is intended to enhance the accounting for the amortization of premiums for purchased callable debt securities. Specifically, the ASU shortens the amortization period for certain investments in callable debt securities purchased at a premium by requiring that the premium be amortized to the earliest call date. The amendments do not require an accounting change for securities held at a discount; the discount continues to be amortized to maturity. The update is effective for annual periods beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the impact that the recently issued accounting standard will have on the Company's financial position and results of operations, but does not expect it to have a material impact. In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350). This update removes the requirement to compare the implied fair value of goodwill with its carrying amount as part of step 2 of the goodwill impairment test. As a result, under the ASU, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount and should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. In addition, the ASU clarifies that an entity should consider income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss, if applicable. The update is effective for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. None of these amendments are expected to have a material impact on the Company's financial position or results of operations. In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326) . ASU 2016-13 is intended to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. The update broadens the information that an entity must consider in developing its expected credit loss estimates, and is meant to better reflect an entity’s current estimate of all expected credit losses. In addition, this update amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. The update is effective for annual periods beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted as of fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company is currently evaluating the impact that the recently issued accounting standard will have on the Company's financial position and results of operations, but does not expect it to have a material impact. Currently, the Company's potential credit losses under this accounting standard relate to fixed maturity securities. The Company does not believe that the risk of credit losses, based on current fixed maturity securities holdings, is material to the Company's financial statements as a whole. Refer to Note 3 for further information about the Company's investments. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) . ASU 2016-02 updated guidance to improve financial reporting for leasing transactions. The core principle of the guidance is that lessees will be required to recognize assets and liabilities on the balance sheet for all leases with terms of more than twelve months. A lessee would recognize a liability to make lease payments and a right-of-use asset representing its right to use the underlying asset for the lease term. The accounting applied by a lessor is largely unchanged from current GAAP, with some targeted improvements. Disclosures will be required by lessees and lessors to meet the objective of enabling users of financial statements to assess the amount, timing, and uncertainty of cash flows arising from leases. In transition, both lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The update is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption was permitted for all entities upon issuance. The Company is currently evaluating the impact that the recently issued accounting standard will have on the Company's financial position and results of operations. The adoption of the new guidance is expected to increase assets and liabilities on the Company’s consolidated balance sheets by approximately $3.0 million , and will likely have an insignificant impact on the Company’s consolidated statements of income. In July 2018, the FASB issued ASU 2018-11, Leases (Topic 842): Targeted Improvements. The amendments in this update provide entities with an additional (and optional) transition method to adopt the new lease standard. Under this new transition method, an entity initially applies the new lease standard at the adoption date and recognizes a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. In addition, the amendments in this update provide lessors with a practical expedient, by class of underlying asset, to not separate non-lease components from the associated lease component similar to the expedient provided to lessees. The Company is not planning to adopt the optional transition method under ASU 2018-11. |
Use Of Estimates and Assumptions | Use of Estimates and Assumptions 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, and disclosures of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period and accompanying notes. Actual results could differ materially from those estimates and assumptions used. The more significant of these estimates and assumptions include the following: Claims: The Company’s reserve for claims is established using estimated amounts required to settle claims for which notice has been received (reported) and the amount estimated to be required to satisfy incurred claims of policyholders which may be reported in the future. A provision for estimated future claims payments is recorded at the time policy revenue is recorded as a percentage of premium income. By their nature, title claims can often be complex, vary greatly in dollar amounts, vary in number due to economic and market conditions such as an increase in mortgage foreclosures, and involve uncertainties as to ultimate exposure. In addition, some claims may require a number of years to settle and determine the final liability for indemnity and loss adjustment expense. The payment experience may extend for more than 20 years after the issuance of a policy. Events such as fraud, defalcation and multiple property defects can substantially and unexpectedly cause increases in estimates of losses. Due to the length of time over which claim payments are made and regularly occurring changes in underlying economic and market conditions, these estimates are subject to variability. Management considers factors such as the Company’s historical claims experience, case reserve estimates on reported claims, large claims, actuarial projections and other relevant factors in determining its loss provision rates and the aggregate recorded expected liability for claims. In establishing the reserve, actuarial projections are compared with recorded reserves to evaluate the adequacy of such recorded claims reserves and any necessary adjustments are then recorded in the current period’s income statement. As the most recent claims experience develops and new information becomes available, the loss reserve estimate related to prior periods will change to more accurately reflect updated and improved emerging data. The Company reflects any adjustments to the reserve in the results of operations in the period in which new information (principally claims experience) becomes available. The Company’s reserve for claims is established using estimated amounts required to settle claims for which notice has been received (reported) and the amount estimated to be required to satisfy incurred claims of policyholders which have been incurred but not reported. Premiums written: Premium revenues from certain agency operations include accruals for transactions which have settled but have not been reported as of the balance sheet date. These accruals are based on estimates of the typical lag time between settlement of real estate transactions and the agent’s reporting of these transactions to the Company. Reporting lag times vary by market. In certain markets, the lag time may be very short, but in others, can be as high as 100 days. The Company reviews and adjusts lag time estimates periodically, using historical experience and other factors, and reflects any adjustments in the result of operations in the period in which new information becomes available. Impairments: Securities are regularly evaluated and reviewed for differences between the cost and estimated fair value of each security for factors that may indicate that a decline in estimated fair value is other-than-temporary. When, in the opinion of management, a decline in the estimated fair value of an investment is considered to be other-than-temporary, such investment is written down to its estimated fair value. Some factors considered in evaluating whether or not a decline in estimated fair value is other-than-temporary include the duration and extent to which the estimated fair value has been less than cost; the probability that the Company will be unable to collect all amounts due under the contractual terms of the security; with respect to equity securities, whether the Company’s ability and intent to retain the investment for a period of time is sufficient to allow for a recovery in value; whether the Company has the intent to sell or will more likely than not be required to sell a particular security before recovery in value; and the financial condition and prospects of the issuer (including credit ratings). These factors are reviewed quarterly and any material degradation in the prospect for recovery will be considered in the other-than-temporary impairment analysis. Such reviews are inherently uncertain and the value of the investment may not fully recover or may decline in future periods resulting in a realized loss. The estimated fair values of the majority of the Company’s investments are based on quoted market prices from independent pricing services. |
Investments in Securities and_2
Investments in Securities and Fair Value (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Gross Unrealized Gains (Losses) and Amortized Cost for Securities | The cost and estimated fair value of equity securities are as follows: As of December 31, 2018 (in thousands) Cost Estimated Equity securities, at fair value: Common stocks $ 31,255 $ 48,489 Total $ 31,255 $ 48,489 As of December 31, 2017 (in thousands) Cost Gross Gains Gross Losses Estimated Equity securities, at fair value: Common stocks $ 26,003 $ 21,376 $ 12 $ 47,367 Total $ 26,003 $ 21,376 $ 12 $ 47,367 The estimated fair value, gross unrealized holding gains, gross unrealized holding losses and amortized cost for fixed maturity securities by major classification are as follows: As of December 31, 2018 (in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Fixed maturity securities, available-for-sale, at fair value: Government obligations $ 1,023 $ — $ 7 $ 1,016 General obligations of U.S. states, territories and political subdivisions 19,518 229 143 19,604 Special revenue issuer obligations of U.S. states, territories and political subdivisions 56,675 1,237 329 57,583 Corporate debt securities 10,498 303 47 10,754 Total $ 87,714 $ 1,769 $ 526 $ 88,957 As of December 31, 2017 (in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Fixed maturity securities, available-for-sale, at fair value: Governmental obligations $ 1,043 $ — $ 1 $ 1,042 General obligations of U.S. states, territories and political subdivisions 24,189 505 50 24,644 Special revenue issuer obligations of U.S. states, territories and political subdivisions 62,592 2,218 165 64,645 Corporate debt securities 12,490 527 7 13,010 Total $ 100,314 $ 3,250 $ 223 $ 103,341 |
Schedule Of Fixed Maturity Securities | The scheduled maturity securities of fixed maturity securities at December 31, 2018 were as follows: Available-for-Sale (in thousands) Amortized Cost Fair Value Due in one year or less $ 12,605 $ 12,606 Due after one year through five years 31,988 32,808 Due five years through ten years 42,163 42,310 Due after ten years 958 1,233 Total $ 87,714 $ 88,957 |
Schedule of Unrealized Loss on Investments | The following table presents the gross unrealized losses on fixed maturity securities and the estimated fair value of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous loss position at December 31, 2018 and 2017 , respectively. Less than 12 Months 12 Months or Longer Total As of December 31, 2018 (in thousands) Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized Losses Government obligations $ 1,016 $ (7 ) $ — $ — $ 1,016 $ (7 ) General obligations of U.S. states, territories and political subdivisions 4,888 (32 ) 6,469 (111 ) 11,357 (143 ) Special revenue issuer obligations of U.S. states, territories and political subdivisions 12,326 (100 ) 9,720 (229 ) 22,046 (329 ) Corporate debt securities 4,490 (28 ) 3,733 (19 ) 8,223 (47 ) Total temporarily impaired securities $ 22,720 $ (167 ) $ 19,922 $ (359 ) $ 42,642 $ (526 ) Less than 12 Months 12 Months or Longer Total As of December 31, 2017 (in thousands) Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized Losses Government obligations $ 1,042 $ (1 ) $ — $ — $ 1,042 $ (1 ) General obligations of U.S. states, territories and political subdivisions 4,560 (27 ) 3,535 (23 ) 8,095 (50 ) Special revenue issuer obligations of U.S. states, territories and political subdivisions 13,551 (61 ) 4,023 (104 ) 17,574 (165 ) Corporate debt securities 3,744 (7 ) — — 3,744 (7 ) Total temporarily impaired securities $ 22,897 $ (96 ) $ 7,558 $ (127 ) $ 30,455 $ (223 ) |
Schedule of Earnings on Investments | Earnings on investments for the years ended December 31 were as follows: (in thousands) 2018 2017 2016 Fixed maturity securities $ 2,809 $ 3,037 $ 3,506 Equity securities 1,308 1,203 1,158 Invested cash and other short-term investments 492 202 20 Miscellaneous interest 10 3 — Investment income $ 4,619 $ 4,445 $ 4,684 |
Schedule of Gross Realized Gain (Loss) on Securities | Gross realized gains and losses on sales of investments for the years ended December 31 are summarized as follows: (in thousands) 2018 2017 2016 Gross realized gains from securities: Corporate debt securities $ — $ — $ 119 Common stocks and nonredeemable preferred stocks 1,030 1,487 954 Auction rate securities — — 75 Total 1,030 1,487 1,148 Gross realized losses from securities: General obligations of U.S. states, territories and political subdivisions — — (1 ) Special revenue issuer obligations of U.S. states, territories and political subdivisions — — (1 ) Common stocks (1,147 ) (260 ) (173 ) Other-than-temporary impairment of securities — (26 ) (234 ) Total (1,147 ) (286 ) (409 ) Net realized (loss) gain $ (117 ) $ 1,201 $ 739 Net realized gain (loss) on other investments: Impairments on other investments $ — $ (182 ) $ — Gains on other investments 7 22 29 Total $ 7 $ (160 ) $ 29 Net realized (loss) gain on investments $ (110 ) $ 1,041 $ 768 |
Schedule of Variable Interest Entities | The following table sets forth details about the Company's variable interest investments in VIEs, which are structured either as limited partnerships ("LPs") or limited liability companies ("LLCs"), as of December 31, 2018: Type of Investment (in thousands) Balance Sheet Classification Carrying Value Estimated Fair Value Maximum Potential Loss (a) Tax credit LPs Other investments $ 629 $ 629 $ 1,325 Real estate LLCs or LPs Other investments 5,073 6,093 8,250 Small business investment LLCs or LPs Other investments 4,642 4,364 8,910 Total $ 10,344 $ 11,086 $ 18,485 (a) Maximum potential loss is calculated as the total investment in the LLC or LP including any capital commitments that may have not yet been called. The Company is not exposed to any loss beyond the total commitment of its investment. |
Schedule of Fair Value Assets Measured on Recurring Basis | The following table presents, by level, fixed maturity securities carried at estimated fair value measured as of December 31, 2018 and 2017 : As of December 31, 2018 (in thousands) Level 1 Level 2 Level 3 Total Fixed maturity securities: Obligations of U.S. states, territories and political subdivisions* $ — $ 78,203 $ — $ 78,203 Corporate debt securities* — 10,754 — 10,754 Total $ — $ 88,957 $ — $ 88,957 As of December 31, 2017 (in thousands) Level 1 Level 2 Level 3 Total Fixed maturity securities: Obligations of U.S. states, territories and political subdivisions* $ — $ 90,331 $ — $ 90,331 Corporate debt securities* — 13,010 — 13,010 Total $ — $ 103,341 $ — $ 103,341 *Denotes fair market value obtained from pricing services. |
Schedule of Carrying Value and Fair Value of Financial Assets | The estimated fair values of equity investments and other financial instruments as of December 31, 2018 and December 31, 2017 are presented in the following table: As of December 31, 2018 (in thousands) Level 1 Level 2 Level 3 Total Financial assets: Cash $ 18,694 $ — $ — $ 18,694 Accrued interest and dividends 946 — — 946 Equity securities, at fair value: Common stocks 48,489 — — 48,489 Short-term investments: Commercial paper and money market funds 32,787 — — 32,787 Other investments: Equity investments in unconsolidated affiliates, equity method — — 5,847 5,847 Equity investments in unconsolidated affiliates, measurement alternative — — 6,589 6,589 Total $ 100,916 $ — $ 12,436 $ 113,352 As of December 31, 2017 (in thousands) Level 1 Level 2 Level 3 Total Financial assets: Cash $ 20,214 $ — $ — $ 20,214 Accrued interest and dividends 1,100 — — 1,100 Equity securities, at fair value: Common stocks 47,367 — — 47,367 Short-term investments: Commercial paper, money market funds, and certificates of deposit 23,780 — — 23,780 Other investments: Equity investments in unconsolidated affiliates, equity method — — 6,593 6,593 Equity investments in unconsolidated affiliates, measurement alternative — — 5,439 5,439 Total $ 92,461 $ — $ 12,032 $ 104,493 |
Schedule of Cost-method Investments | The following table presents a rollforward of equity investments under the measurement alternative as of December 31, 2018 and 2017 : (in thousands) Balance, January 1, 2018 Amounts Impaired Observable Changes Purchases and Additional Commitments Paid Sales, Returns of Capital and Other Reductions Balance, December 31, 2018 Other investments: Equity investments in unconsolidated affiliates, measurement alternative $ 5,439 $ — $ — $ 1,486 $ (336 ) $ 6,589 Total $ 5,439 $ — $ — $ 1,486 $ (336 ) $ 6,589 (in thousands) Balance, January 1, 2017 Amounts Impaired Observable Changes Purchases and Additional Commitments Paid Sales, Returns of Capital and Other Reductions Balance, December 31, 2017 Other investments: Equity investments in unconsolidated affiliates, measurement alternative $ 4,744 $ — $ — $ 1,082 $ (387 ) $ 5,439 Total $ 4,744 $ — $ — $ 1,082 $ (387 ) $ 5,439 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | Property and equipment and estimated useful lives at December 31 are summarized as follows: (in thousands) 2018 2017 Land $ 1,413 $ 1,123 Office buildings and improvements (25 years) 4,492 4,406 Furniture, fixtures and equipment (3 to 10 years) 14,148 12,993 Automobiles (3 years) 935 891 Total 20,988 19,413 Less accumulated depreciation (10,684 ) (9,240 ) Property and equipment, net $ 10,304 $ 10,173 Included within furniture, fixtures and equipment is software developed by the Company for internal use. Capitalized costs include both direct and indirect costs, such as payroll costs of employees associated with developing software, incurred during the software development stage. |
Reserves for Claims (Tables)
Reserves for Claims (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Liability for Future Policy Benefits and Unpaid Claims and Claims Adjustment Expense [Abstract] | |
Summary Of Transactions In Reserves For Claims | Changes in the reserve for claims for the years ended December 31 are summarized as follows based on the year in which the policies were written: (in thousands) 2018 2017 2016 Balance, beginning of period $ 34,801 $ 35,305 $ 37,788 (Benefit) provision related to: Current year 6,762 7,432 6,673 Prior years (7,094 ) (4,121 ) (6,430 ) Total (benefit) provision charged to operations (332 ) 3,311 243 Claims paid, net of recoveries, related to: Current year (178 ) (75 ) (103 ) Prior years (2,562 ) (3,740 ) (2,623 ) Total claims paid, net of recoveries (2,740 ) (3,815 ) (2,726 ) Balance, end of year $ 31,729 $ 34,801 $ 35,305 |
Summary Of The Company's Loss Reserves | A summary of the Company’s reserve for claims, broken down into its components of known title claims and IBNR, follows: (in thousands, except percentages) 2018 % 2017 % Known title claims $ 3,007 9.5 $ 4,646 13.4 IBNR 28,722 90.5 30,155 86.6 Total reserve for claims $ 31,729 100.0 $ 34,801 100.0 |
Earnings Per Common Share and_2
Earnings Per Common Share and Share Awards (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Computation Of Basic And Diluted Earnings Per Share | The following table sets forth the computation of basic and diluted earnings per share for the years ended December 31: (in thousands, except per share amounts) 2018 2017 2016 Net income attributable to the Company $ 21,892 $ 25,707 $ 19,523 Weighted average common shares outstanding – Basic 1,887 1,886 1,908 Incremental shares outstanding assuming the exercise of dilutive stock options and SARs (share-settled) 10 10 7 Weighted average common shares outstanding – Diluted 1,897 1,896 1,915 Basic earnings per common share $ 11.60 $ 13.63 $ 10.23 Diluted earnings per common share $ 11.54 $ 13.56 $ 10.19 |
Summary Of Share-Based Award Transactions | A summary of share-based award transactions for all share-based award plans follows: (in thousands, except weighted average exercise price and average remaining contractual term) Number Of Shares Weighted Average Exercise Price Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding as of January 1, 2016 22 $ 57.04 3.93 $ 945 SARs granted 5 93.87 SARs exercised (2 ) 32.00 Outstanding as of December 31, 2016 25 $ 65.85 3.85 $ 837 SARs granted 4 192.71 SARs exercised (4 ) 36.38 Outstanding as of December 31, 2017 25 $ 93.40 3.98 $ 2,624 SARs granted 4 188.71 SARs exercised (1 ) 41.50 Outstanding as of December 31, 2018 28 $ 110.27 3.64 $ 2,019 Exercisable as of December 31, 2018 27 $ 107.05 3.53 $ 2,019 Unvested as of December 31, 2018 1 $ 188.71 6.38 $ — |
Summary of Information of Fixed Stock Options | The following table summarizes information about SARs outstanding at December 31, 2018 : (in thousands, except exercise prices and average remaining contractual term) SARs Outstanding at Year-End SARs Exercisable at Year-End Range of Exercise Prices Number Outstanding Weighted Average Remaining Contractual Life Weighted Average Exercise Price Number Exercisable Weighted Average Exercise Price $ 50.00 — $ 59.99 3 0.37 $ 50.50 3 $ 50.50 60.00 — 69.99 4 2.39 68.70 4 68.70 70.00 — 79.99 8 2.58 72.44 8 72.44 90.00 — 99.99 4 4.38 93.87 4 93.87 150.00 — 199.99 9 5.88 190.71 8 191.00 $ 50.00 — $ 199.99 28 3.64 $ 110.27 27 $ 107.05 |
Share-Based Valuation Assumptions | The weighted average fair values for the SARs issued during 2018 , 2017 and 2016 were $78.61 , $55.40 and $28.75 , respectively, and were estimated using the weighted average assumptions shown in the table below. 2018 2017 2016 Expected life in years 7.0 7.0 7.0 Volatility 39.0% 26.2% 28.9% Interest rate 3.1% 2.0% 1.7% Yield rate 0.8% 0.8% 0.7% |
Schedule of Weighted Average Grant Date Fair Value of Stock Awards Plans | The estimated weighted average grant-date fair value of SARs granted for the years ended December 31, was as follows: 2018 2017 2016 Exercise price equal to market price on date of grant: Weighted average market price $ 188.71 $ 192.71 $ 93.87 Weighted average grant-date fair value $ 78.61 $ 55.40 $ 28.75 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense | The components of income tax expense for the years ended December 31 are summarized as follows: (in thousands) 2018 2017 2016 Current: Federal $ 9,156 $ 9,163 $ 5,745 State 128 71 81 Total current 9,284 9,234 5,826 Deferred: Federal (4,064 ) (4,649 ) 2,756 State (10 ) (15 ) 34 Total deferred (4,074 ) (4,664 ) 2,790 Total $ 5,210 $ 4,570 $ 8,616 |
Schedule of Deferred Tax Assets and Liabilities | At December 31, the approximate tax effect of each component of deferred income tax assets and liabilities is summarized as follows: (in thousands) 2018 2017 Deferred income tax assets: Accrued benefits and retirement services $ 2,758 $ 2,449 Other-than-temporary impairment of assets 198 265 Allowance for doubtful accounts 82 102 Net operating loss carryforward 28 33 Reinsurance and commission payable 13 — Postretirement benefit obligation 8 18 Other 359 878 Total 3,446 3,745 Deferred income tax liabilities: Net unrealized gain on investments 3,924 5,193 Intangible assets 1,250 1,338 Excess of tax over book depreciation 1,104 1,042 Recorded reserve for claims, net of statutory premium reserves 599 4,126 Other 753 672 Total 7,630 12,371 Net deferred income tax liabilities $ (4,184 ) $ (8,626 ) |
Schedule of Reconciliation of Income Tax | As computed for the years ended December 31 at the U.S. federal statutory income tax rate of 21.0% for 2018 , 35.0% for 2017 and 34.6% for 2016 , respectively, to income tax expense follows: (in thousands) 2018 2017 2016 Anticipated income tax expense $ 5,684 $ 10,595 $ 9,734 Increase (decrease) related to: State income taxes, net of federal income tax benefit 101 46 53 Tax-exempt interest income, net of amortization (1,026 ) (1,298 ) (1,075 ) Tax Cuts and Jobs Act — (5,342 ) — Other, net 451 569 (96 ) Provision for income taxes $ 5,210 $ 4,570 $ 8,616 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Leases [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases | The future minimum lease payments under operating leases that have initial or remaining noncancelable lease terms in excess of one year as of December 31, 2018 , are summarized as follows: Year Ended (in thousands) 2019 $ 1,181 2020 1,009 2021 838 2022 617 2023 196 Thereafter 166 Total $ 4,007 |
Retirement Agreements and Oth_2
Retirement Agreements and Other Postretirement Benefit Plan (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |
Components Of Net Periodic Benefits Cost | Cost of the Company’s postretirement benefits included the following components and is presented in the personnel expenses line of its Consolidated Statements of Income: (in thousands) 2018 2017 2016 Net periodic benefit cost Service cost – benefits earned during the year $ — $ — $ 10 Interest cost on the projected benefit obligation 32 37 35 Amortization of unrecognized prior service cost — — — Amortization of unrecognized loss — 9 9 Net periodic benefits cost at end of year $ 32 $ 46 $ 54 |
Schedule of Net Funded Status On The Balance Sheet | The effects of the funded status on the Company’s Consolidated Balance Sheets at December 31, 2018 and 2017 are presented in the following table: (in thousands) 2018 2017 Funded status Actuarial present value of future benefits: Fully eligible active employee $ (882 ) $ (896 ) Non-eligible active employees — — Plan assets — — Funded status of accumulated postretirement benefit obligation, recognized in other liabilities $ (882 ) $ (896 ) |
Development Of The Accumulated Postretirement Benefit Obligation | Development of the accumulated postretirement benefit obligation for the years ended December 31, 2018 and 2017 includes the following: (in thousands) 2018 2017 Accrued postretirement benefit obligation at beginning of year $ (896 ) $ (929 ) Service cost – benefits earned during the year — — Interest cost on projected benefit obligation (32 ) (37 ) Actuarial gain 46 70 Accrued postretirement benefit obligation at end of year $ (882 ) $ (896 ) |
Changes in Amounts Related to Accumulated Other Comprehensive Income, Pre-Tax | The changes in amounts related to accumulated other comprehensive income, pre-tax, are as follows: (in thousands) 2018 2017 Balance at beginning of year $ 87 $ 166 Components of accumulated other comprehensive income: Unrecognized prior service cost — — Amortization of loss, net — (9 ) Actuarial gain (46 ) (70 ) Balance at end of year $ 41 $ 87 |
Amounts in Accumulated Other Comprehensive Income, Pre-Tax, to be Recognized as Components of Net Periodic Benefit Costs | The amounts currently in accumulated other comprehensive income, pre-tax, that will be reclassified to the Consolidated Statements of Income and recognized as components of net periodic benefit costs in 2019 are: (in thousands) Projected 2019 Amortization of unrecognized prior service cost $ — Amortization of unrecognized loss — Net periodic benefit cost at end of year $ — |
Effect of Net Periodic Postretirement Benefit Cost and Accumulated Postretirement Benefit Obligation | The following illustrates the effects on the net periodic postretirement benefit cost (“NPPBC”) and the accumulated postretirement benefit obligation (“APBO”) of a one percentage point increase and one percentage point decrease in the assumed health care cost trend rate as of December 31, 2018 : (in thousands) One Percentage Point Increase One Percentage Point Decrease Net periodic postretirement benefit cost Effect on the service cost component $ — $ — Effect on interest cost 7 (5 ) Total effect on the net periodic postretirement benefit cost $ 7 $ (5 ) Accumulated postretirement benefit obligation (including active employees who are not fully eligible) Effect on those currently receiving benefits (retirees and spouses) $ — $ — Effect on active fully eligible 176 (139 ) Effect on actives not yet eligible — — Total effect on the accumulated postretirement benefit obligation $ 176 $ (139 ) |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Selected Financial Information About The Company's Operations By Segment | Provided below is selected financial information about the Company’s operations by segment for the periods ended December 31, 2018 , 2017 and 2016 : 2018 (in thousands) Title Insurance All Other Intersegment Eliminations Total Insurance and other services revenues $ 153,687 $ 8,315 $ (9,229 ) $ 152,773 Investment income 2,542 1,054 — 3,596 Net realized (loss) gain on investments (167 ) 57 — (110 ) Total revenues $ 156,062 $ 9,426 $ (9,229 ) $ 156,259 Operating expenses 126,367 8,424 (5,601 ) 129,190 Income before income taxes $ 29,695 $ 1,002 $ (3,628 ) $ 27,069 Total assets $ 199,531 $ 44,737 $ — $ 244,268 2017 (in thousands) Title Insurance All Other Intersegment Eliminations Total Insurance and other services revenues $ 153,469 $ 7,307 $ (6,794 ) $ 153,982 Investment income 5,834 770 — 6,604 Net realized gain on investments 932 109 — 1,041 Total revenues $ 160,235 $ 8,186 $ (6,794 ) $ 161,627 Operating expenses 129,073 7,913 (5,630 ) 131,356 Income before income taxes $ 31,162 $ 273 $ (1,164 ) $ 30,271 Total assets $ 193,828 $ 55,085 $ — $ 248,913 2016 (in thousands) Title Insurance All Other Intersegment Eliminations Total Insurance and other services revenues $ 126,589 $ 6,731 $ (2,178 ) $ 131,142 Investment income 6,146 642 (210 ) 6,578 Net realized gain on investments 645 123 — 768 Total revenues $ 133,380 $ 7,496 $ (2,388 ) $ 138,488 Operating expenses 105,882 6,583 (2,108 ) 110,357 Income before income taxes $ 27,498 $ 913 $ (280 ) $ 28,131 Total assets $ 183,764 $ 45,174 $ — $ 228,938 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
Summary Of Approximate Values By Year Found Within Consolidated Balance Sheets | The following table sets forth the approximate values by year found within each financial statement classification: Financial Statement Classification, Consolidated Balance Sheets (in thousands) 2018 2017 Other investments $ 5,847 $ 6,594 Premiums and fees receivable $ 409 $ 720 |
Summary Of Approximate Values By Year Found Within Consolidated Statements Of Income | Financial Statement Classification, Consolidated Statements of Income (in thousands) 2018 2017 2016 Net premiums written $ 13,960 $ 14,645 $ 15,318 Non-title services and other investment income $ 2,444 $ 2,240 $ 2,317 Commissions to agents $ 9,259 $ 9,864 $ 10,394 |
Business Combinations, Intang_2
Business Combinations, Intangible Assets and Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
Schedule of Finite-Lived Intangible Assets | Identifiable intangible assets consist of the following as of December 31: Year Ended (in thousands) 2018 2017 Referral relationships $ 6,416 $ 6,416 Non-complete agreements 1,406 1,406 Tradename 560 560 Total 8,382 8,382 Accumulated amortization (1,952 ) (1,375 ) Identifiable intangible assets, net $ 6,430 $ 7,007 |
Schedule Of Aggregate Amortization Expense for Intangible Assets | The following table provides the estimated aggregate amortization expense for each of the five succeeding fiscal years: Year Ended (in thousands) 2019 $ 504 2020 569 2021 562 2022 525 2023 525 Thereafter 3,745 Total $ 6,430 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule Of Changes In Balances Of Each Component Of Accumulated Other Comprehensive Income, Net Of Tax | The following tables provide changes in the balances of each component of accumulated other comprehensive income, net of tax, for the periods ended December 31, 2018 , 2017 and 2016 : 2018 (in thousands) Unrealized Gains and Losses On Available-for-Sale Securities Postretirement Benefits Plans Total Beginning balance at January 1 $ 16,003 $ (58 ) $ 15,945 Cumulative-effect adjustment for adoption of new accounting standards (13,616 ) (11 ) (13,627 ) Other comprehensive loss before reclassifications (1,499 ) 37 (1,462 ) Amounts reclassified from accumulated other comprehensive income 93 — 93 Net current-period other comprehensive loss (1,406 ) 37 (1,369 ) Ending balance $ 981 $ (32 ) $ 949 2017 (in thousands) Unrealized Gains and Losses On Available-for-Sale Securities Postretirement Benefits Plans Total Beginning balance at January 1 $ 11,871 $ (110 ) $ 11,761 Other comprehensive income before reclassifications 4,922 46 4,968 Amounts reclassified from accumulated other comprehensive income (790 ) 6 (784 ) Net current-period other comprehensive income 4,132 52 4,184 Ending balance $ 16,003 $ (58 ) $ 15,945 2016 (in thousands) Unrealized Gains and Losses On Available-for-Sale Securities Postretirement Benefits Plans Total Beginning balance at January 1 $ 11,598 $ (115 ) $ 11,483 Other comprehensive income before reclassifications 758 — 758 Amounts reclassified from accumulated other comprehensive income (485 ) 5 (480 ) Net current-period other comprehensive income 273 5 278 Ending balance $ 11,871 $ (110 ) $ 11,761 |
Schedule Of Reclassification Out Of Accumulated Other Comprehensive Income | The following tables provide significant amounts reclassified out of each component of accumulated other comprehensive income for the periods ended December 31, 2018 , 2017 and 2016 : 2018 (in thousands) Details about Accumulated Other Comprehensive Income Components Amount Reclassified from Accumulated Other Comprehensive Income Affected Line Item in the Consolidated Statements of Income Unrealized gains and losses on available-for-sale securities: Net realized loss on investment $ (117 ) Other-than-temporary impairments — Total $ (117 ) Net realized (loss) gain on investments Tax 24 Provision for Income Taxes Net of Tax $ (93 ) Amortization related to postretirement benefit plans: Prior year service cost $ — Unrecognized loss — Total $ — (a) Tax — Provision for Income Taxes Net of Tax $ — Reclassifications for the period $ (93 ) 2017 (in thousands) Details about Accumulated Other Amount Reclassified from Affected Line Item in the Consolidated Unrealized gains and losses on available-for-sale securities: Net realized gain on investment $ 1,227 Other-than-temporary impairments (26 ) Total $ 1,201 Net realized (loss) gain on investments Tax (411 ) Provision for Income Taxes Net of Tax $ 790 Amortization related to postretirement benefit plans: Prior year service cost $ — Unrecognized loss (9 ) Total $ (9 ) (a) Tax 3 Provision for Income Taxes Net of Tax $ (6 ) Reclassifications for the period $ 784 2016 (in thousands) Details about Accumulated Other Amount Reclassified from Affected Line Item in the Consolidated Unrealized gains and losses on available-for-sale securities: Net realized gain on investment $ 973 Other-than-temporary impairments (234 ) Total $ 739 Net realized (loss) gain on investments Tax (254 ) Provision for Income Taxes Net of Tax $ 485 Amortization related to postretirement benefit plans: Prior year service cost $ — Unrecognized loss (9 ) Total $ (9 ) (a) Tax 4 Provision for Income Taxes Net of Tax $ (5 ) Reclassifications for the period $ 480 (a) These accumulated other comprehensive income components are not reclassified to net income in their entirety in the same reporting period. The amounts are presented within salaries, employee benefits and payroll taxes on the Consolidated Statements of Income as amortized. Amortization related to postretirement benefit plans is included in the computation of net periodic pension costs, as discussed in Note 10. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table provides a breakdown of the Company’s revenue by major business activity: (in thousands) 2018 2017 2016 Revenue from contracts with customers: Escrow and other title-related fees $ 7,096 $ 6,892 $ 2,532 Non-title services 7,082 6,128 5,651 Total revenue from contracts with customers 14,178 13,020 8,183 Other sources of revenue: Net premiums written 138,125 140,502 122,522 Investment related revenue 3,486 7,645 7,346 Other 470 460 437 Total Revenues $ 156,259 $ 161,627 $ 138,488 |
Basis Of Presentation and Sig_3
Basis Of Presentation and Significant Accounting Policies (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018USD ($)StateSubsidiary | Jan. 01, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Organization, Consolidation and Presentation of Financial Statements [Line Items] | ||||
Equity Securities, FV-NI, Unrealized Gain (Loss) | $ (4,100) | |||
Operating Leases, Future Minimum Payments Receivable | $ 3,000 | |||
Number of title insurance subsidiaries | Subsidiary | 2 | |||
Number of States in which Entity operates | State | 23 | |||
Cost Method Investments, Original Cost | $ 6,600 | $ 5,400 | ||
Premium collection period before reserved | 7 months | |||
Unrealized holding gains on available-for-sale securities | $ 981 | 16,000 | $ 11,900 | |
Unrecognized prior service cost and unrecognized actuarial losses associated with postretirement benefit liabilities | $ 32 | $ 58 | $ 110 | |
Potential claim payment period after policy issuance | 20 years | |||
Minimum | ||||
Organization, Consolidation and Presentation of Financial Statements [Line Items] | ||||
Property and equipment useful life | 3 years | |||
Finite-Lived Intangible Asset, Useful Life | 1 year | |||
Maximum | ||||
Organization, Consolidation and Presentation of Financial Statements [Line Items] | ||||
Property and equipment useful life | 25 years | |||
Finite-Lived Intangible Asset, Useful Life | 30 years | |||
Lag time between Policy effective dates and transaction reporting dates | 100 days | |||
Accounting Standards Update 2018-02 [Member] | Retained Earnings | ||||
Organization, Consolidation and Presentation of Financial Statements [Line Items] | ||||
Cumulative-effect adjustment for adoption of new accounting standards | $ 3,100 | |||
Accounting Standards Update 2016-01 [Member] | Retained Earnings | ||||
Organization, Consolidation and Presentation of Financial Statements [Line Items] | ||||
Cumulative-effect adjustment for adoption of new accounting standards | $ 16,800 |
Statutory Restrictions on Con_2
Statutory Restrictions on Consolidated Stockholders' Equity and Investments (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statutory Restrictions on Consolidated Stockholders' Equity and Investments [Abstract] | |||
Combined capital and surplus on statutory basis | $ 180.2 | $ 171.9 | |
Net income statutory basis | 41 | 18.8 | $ 17.9 |
Statutory accounting statutory premium and supplemental reserves | 35.9 | 57.3 | |
Amount available for dividend distribution with approval from regulatory agencies | 81.8 | 102.1 | |
Statutory accounting practices, statutory amount available for dividend payments | 45.4 | ||
Investments on deposit with state insurance departments | $ 6.7 | $ 7.1 |
Investments in Securities and_3
Investments in Securities and Fair Value (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Investments, Debt and Equity Securities [Abstract] | |||
Number of securities with unrealized losses | 51 | 31 | |
Other than Temporary Impairment Losses, Investments, Portion Recognized in Earnings, Net | $ 0 | $ 26 | $ 234 |
Investments in Securities and_4
Investments in Securities and Fair Value Investments in Securities (Schedule of Gross Unrealized Gains and Losses and Amortized Cost for Securities) (Details) $ in Thousands | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
Government obligations | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Fixed maturities, available-for-sale, amortized cost | $ 1,023 | $ 1,043 |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 0 | 0 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 7 | 1 |
Available-for-sale, at fair value, Estimated Fair Value | 1,016 | 1,042 |
General obligations of U.S. states, territories and political subdivisions | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Fixed maturities, available-for-sale, amortized cost | 19,518 | 24,189 |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 229 | 505 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 143 | 50 |
Available-for-sale, at fair value, Estimated Fair Value | 19,604 | 24,644 |
Special revenue issuer obligations of U.S. states, territories and political subdivisions | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Fixed maturities, available-for-sale, amortized cost | 56,675 | 62,592 |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 1,237 | 2,218 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 329 | 165 |
Available-for-sale, at fair value, Estimated Fair Value | $ 57,583 | $ 64,645 |
Number of Special Revenue Bonds | 60 | 60 |
Corporate debt securities | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Fixed maturities, available-for-sale, amortized cost | $ 10,498 | $ 12,490 |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 303 | 527 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 47 | 7 |
Available-for-sale, at fair value, Estimated Fair Value | 10,754 | 13,010 |
Total fixed maturity securities | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Fixed maturities, available-for-sale, amortized cost | 87,714 | 100,314 |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 1,769 | 3,250 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 526 | 223 |
Available-for-sale, at fair value, Estimated Fair Value | $ 88,957 | $ 103,341 |
Investments in Securities and_5
Investments in Securities and Fair Value Investments in Securities (Schedule of Fixed Maturity Securities) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Securities, Available-for-sale, Amortized Cost, Fiscal Year Maturity [Abstract] | ||
Due in one year or less | $ 12,605 | |
Due after one year through five years | 31,988 | |
Due five years through ten years | 42,163 | |
Due after ten years | 958 | |
Total | 87,714 | $ 100,314 |
Debt Securities, Available-for-sale, Fair Value, Fiscal Year Maturity [Abstract] | ||
Due in one year or less | 12,606 | |
Due after one year through five years | 32,808 | |
Due five years through ten years | 42,310 | |
Due after ten years | 1,233 | |
Total | $ 88,957 |
Investments in Securities and_6
Investments in Securities and Fair Value Investments in Securities (Schedule of Unrealized Losses on Investments) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Government obligations | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total temporarily impaired securities, Less than 12 Months, Fair Value | $ 1,016 | $ 1,042 |
Total temporarily impaired securities, Less than 12 Months, Unrealized Losses | (7) | (1) |
Total temporarily impaired securities, 12 Months or Longer, Fair Value | 0 | 0 |
Total temporarily impaired securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | 0 |
Total temporarily impaired securities, Total Fair Value | 1,016 | 1,042 |
Total temporarily impaired securities, Unrealized Losses | (7) | (1) |
General obligations of U.S. states, territories and political subdivisions | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total temporarily impaired securities, Less than 12 Months, Fair Value | 4,888 | 4,560 |
Total temporarily impaired securities, Less than 12 Months, Unrealized Losses | (32) | (27) |
Total temporarily impaired securities, 12 Months or Longer, Fair Value | 6,469 | 3,535 |
Total temporarily impaired securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (111) | (23) |
Total temporarily impaired securities, Total Fair Value | 11,357 | 8,095 |
Total temporarily impaired securities, Unrealized Losses | (143) | (50) |
Special revenue issuer obligations of U.S. states, territories and political subdivisions | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total temporarily impaired securities, Less than 12 Months, Fair Value | 12,326 | 13,551 |
Total temporarily impaired securities, Less than 12 Months, Unrealized Losses | (100) | (61) |
Total temporarily impaired securities, 12 Months or Longer, Fair Value | 9,720 | 4,023 |
Total temporarily impaired securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (229) | (104) |
Total temporarily impaired securities, Total Fair Value | 22,046 | 17,574 |
Total temporarily impaired securities, Unrealized Losses | (329) | (165) |
Corporate debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total temporarily impaired securities, Less than 12 Months, Fair Value | 4,490 | 3,744 |
Total temporarily impaired securities, Less than 12 Months, Unrealized Losses | (28) | (7) |
Total temporarily impaired securities, 12 Months or Longer, Fair Value | 3,733 | 0 |
Total temporarily impaired securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (19) | 0 |
Total temporarily impaired securities, Total Fair Value | 8,223 | 3,744 |
Total temporarily impaired securities, Unrealized Losses | (47) | (7) |
Total fixed maturity securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total temporarily impaired securities, Less than 12 Months, Fair Value | 22,720 | 22,897 |
Total temporarily impaired securities, Less than 12 Months, Unrealized Losses | (167) | (96) |
Total temporarily impaired securities, 12 Months or Longer, Fair Value | 19,922 | 7,558 |
Total temporarily impaired securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (359) | (127) |
Total temporarily impaired securities, Total Fair Value | 42,642 | 30,455 |
Total temporarily impaired securities, Unrealized Losses | $ (526) | $ (223) |
Investments in Securities and_7
Investments in Securities and Fair Value Investments in Securities (Schedule of Equity Securities) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities, cost | $ 31,255 | $ 26,003 |
Gross unrealized gains | 21,376 | |
Gross unrealized losses | 12 | |
Equity securities, at fair value | 48,489 | 47,367 |
Common Stock [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities, cost | 31,255 | 26,003 |
Gross unrealized gains | 21,376 | |
Gross unrealized losses | 12 | |
Equity securities, at fair value | $ 48,489 | $ 47,367 |
Investments in Securities and_8
Investments in Securities and Fair Value Investments in Securities (Schedule of Earnings on Investments) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Investment income | $ 4,619 | $ 4,445 | $ 4,684 |
Fixed maturity securities | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Investment income | 2,809 | 3,037 | 3,506 |
Equity securities | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Investment income | 1,308 | 1,203 | 1,158 |
Invested cash and other short-term investments | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Investment income | 492 | 202 | 20 |
Miscellaneous interest | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Investment income | $ 10 | $ 3 | $ 0 |
Investments in Securities and_9
Investments in Securities and Fair Value Investments in Securities (Schedule of Gross Realized Gains and Losses on Securities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Debt Securities, Available-for-sale [Line Items] | |||
Total, Gross realized gains | $ 1,030 | $ 1,487 | $ 1,148 |
Total, Gross realized losses | (1,147) | (286) | (409) |
Net realized (loss) gain | (117) | 1,201 | 739 |
Impairments on other investments | 0 | (182) | 0 |
Gains on other investments | 7 | 22 | 29 |
Other investments, Realized Investment Gains (Losses) | 7 | (160) | 29 |
Net realized (loss) gain on investments | (110) | 1,041 | 768 |
Corporate debt securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Total, Gross realized gains | 0 | 0 | 119 |
Common stocks and nonredeemable preferred stocks | |||
Debt Securities, Available-for-sale [Line Items] | |||
Equity Securities, Realized Gain (Loss) | 1,030 | 1,487 | 954 |
Total, Gross realized losses | (1,147) | (260) | (173) |
Auction rate securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Total, Gross realized gains | 0 | 0 | 75 |
General obligations of U.S. states, territories and political subdivisions | |||
Debt Securities, Available-for-sale [Line Items] | |||
Total, Gross realized losses | 0 | 0 | (1) |
Special revenue issuer obligations of U S states, territories and political subdivisions | |||
Debt Securities, Available-for-sale [Line Items] | |||
Total, Gross realized losses | 0 | 0 | (1) |
Other than temporary impairment of securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Total, Gross realized losses | $ 0 | $ (26) | $ (234) |
Investments in Securities an_10
Investments in Securities and Fair Value Investments in Securities (Schedule of Variable Interest Entities) (Details) - Other Investments $ in Thousands | Dec. 31, 2018USD ($) |
Variable Interest Entity [Line Items] | |
Variable Interest Entity, Nonconsolidated, Carrying Value | $ 10,344 |
Variable Interest Entity, Nonconsolidated, Estimated Fair Value | 11,086 |
Variable Interest Entity, Reporting Entity Involvement, Maximum Potential Loss | 18,485 |
Variable Interest Entity, Not Primary Beneficiary, Tax Credit LP | |
Variable Interest Entity [Line Items] | |
Variable Interest Entity, Nonconsolidated, Carrying Value | 629 |
Variable Interest Entity, Nonconsolidated, Estimated Fair Value | 629 |
Variable Interest Entity, Reporting Entity Involvement, Maximum Potential Loss | 1,325 |
Variable Interest Entity, Not Primary Beneficiary, Real Estate LLC or LP | |
Variable Interest Entity [Line Items] | |
Variable Interest Entity, Nonconsolidated, Carrying Value | 5,073 |
Variable Interest Entity, Nonconsolidated, Estimated Fair Value | 6,093 |
Variable Interest Entity, Reporting Entity Involvement, Maximum Potential Loss | 8,250 |
Variable Interest Entity, Not Primary Beneficiary, Small Business Investment LLCs or LPs | |
Variable Interest Entity [Line Items] | |
Variable Interest Entity, Nonconsolidated, Carrying Value | 4,642 |
Variable Interest Entity, Nonconsolidated, Estimated Fair Value | 4,364 |
Variable Interest Entity, Reporting Entity Involvement, Maximum Potential Loss | $ 8,910 |
Investments in Securities an_11
Investments in Securities and Fair Value Investments in Securities (Schedule of Fair Value Assets Measured on Recurring Basis) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity securities, available-for-sale, at fair value | $ 88,957 | $ 103,341 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity securities, available-for-sale, at fair value | 0 | 0 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity securities, available-for-sale, at fair value | 88,957 | 103,341 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity securities, available-for-sale, at fair value | 0 | 0 |
Obligations of U.S. states, territories and political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity securities, available-for-sale, at fair value | 78,203 | 90,331 |
Obligations of U.S. states, territories and political subdivisions | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity securities, available-for-sale, at fair value | 0 | 0 |
Obligations of U.S. states, territories and political subdivisions | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity securities, available-for-sale, at fair value | 78,203 | 90,331 |
Obligations of U.S. states, territories and political subdivisions | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity securities, available-for-sale, at fair value | 0 | 0 |
Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity securities, available-for-sale, at fair value | 10,754 | 13,010 |
Corporate debt securities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity securities, available-for-sale, at fair value | 0 | 0 |
Corporate debt securities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity securities, available-for-sale, at fair value | 10,754 | 13,010 |
Corporate debt securities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturity securities, available-for-sale, at fair value | $ 0 | $ 0 |
Investments in Securities an_12
Investments in Securities and Fair Value Investments in Securities (Schedule of Carrying Value and Fair Value of Financial Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Financial Assets | ||
Cash | $ 18,694 | $ 20,214 |
Accrued interest and dividends | 946 | 1,100 |
Equity securities, at fair value | 48,489 | 47,367 |
Commercial paper and money market funds | 32,787 | 23,780 |
Equity investments in unconsolidated affiliates, equity method | 5,847 | 6,593 |
Equity investments in unconsolidated affiliates, measurement alternative | 6,589 | 5,439 |
Assets, Fair Value Disclosure | 113,352 | 104,493 |
Level 1 | ||
Financial Assets | ||
Cash | 18,694 | 20,214 |
Accrued interest and dividends | 946 | 1,100 |
Equity securities, at fair value | 48,489 | 47,367 |
Commercial paper and money market funds | 32,787 | 23,780 |
Equity investments in unconsolidated affiliates, equity method | 0 | 0 |
Equity investments in unconsolidated affiliates, measurement alternative | 0 | 0 |
Assets, Fair Value Disclosure | 100,916 | 92,461 |
Level 2 | ||
Financial Assets | ||
Cash | 0 | 0 |
Accrued interest and dividends | 0 | 0 |
Equity securities, at fair value | 0 | 0 |
Commercial paper and money market funds | 0 | 0 |
Equity investments in unconsolidated affiliates, equity method | 0 | 0 |
Equity investments in unconsolidated affiliates, measurement alternative | 0 | 0 |
Assets, Fair Value Disclosure | 0 | 0 |
Level 3 | ||
Financial Assets | ||
Cash | 0 | 0 |
Accrued interest and dividends | 0 | 0 |
Equity securities, at fair value | 0 | 0 |
Commercial paper and money market funds | 0 | 0 |
Equity investments in unconsolidated affiliates, equity method | 5,847 | 6,593 |
Equity investments in unconsolidated affiliates, measurement alternative | 6,589 | 5,439 |
Assets, Fair Value Disclosure | $ 12,436 | $ 12,032 |
Investments in Securities an_13
Investments in Securities and Fair Value Investments in Securities (Schedule of Cost-method Investments) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Measurement Alternative Investments | ||
Beginning of Period | $ 5,439 | $ 4,744 |
Amounts Impairment | 0 | 0 |
Observable Changes | 0 | 0 |
Purchases and Additional Commitments Paid | 1,486 | 1,082 |
Sales, Returns of Capital, and Other Reductions | (336) | (387) |
End of Period | $ 6,589 | $ 5,439 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 20,988 | $ 19,413 |
Less accumulated depreciation | (10,684) | (9,240) |
Property and equipment, net | $ 10,304 | 10,173 |
Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment useful life | 3 years | |
Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment useful life | 25 years | |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 1,413 | 1,123 |
Office buildings and improvements (25 years) | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 4,492 | 4,406 |
Property and equipment useful life | 25 years | |
Office buildings and improvements (25 years) | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment useful life | 3 years | |
Office buildings and improvements (25 years) | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment useful life | 25 years | |
Furniture, fixtures and equipment (3 to 10 years) | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 14,148 | 12,993 |
Furniture, fixtures and equipment (3 to 10 years) | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment useful life | 3 years | |
Furniture, fixtures and equipment (3 to 10 years) | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment useful life | 10 years | |
Automobiles (3 years) | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 935 | $ 891 |
Property and equipment useful life | 3 years |
Reinsurance (Details)
Reinsurance (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Reinsurance Disclosures [Abstract] | |||
Assumed premiums written | $ 4 | $ 3 | $ 17 |
Ceded premiums written | $ 327 | $ 264 | $ 141 |
Reserves for Claims Summary Of
Reserves for Claims Summary Of Transactions In Reserves For Claims (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | |||
Balance, beginning of period | $ 34,801 | $ 35,305 | $ 37,788 |
Provisions related to: Current year | 6,762 | 7,432 | 6,673 |
Provisions related to: Prior years | (7,094) | (4,121) | (6,430) |
Total (benefit) provision charged to operations | (332) | 3,311 | 243 |
Claims paid, net of recoveries, related to: Current year | (178) | (75) | (103) |
Claims paid, net of recoveries, related to: Prior years | (2,562) | (3,740) | (2,623) |
Total claims paid, net of recoveries | (2,740) | (3,815) | (2,726) |
Balance, end of year | $ 31,729 | $ 34,801 | $ 35,305 |
Reserves for Claims Summary O_2
Reserves for Claims Summary Of The Company's Loss Reserves (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Liability for Future Policy Benefits and Unpaid Claims and Claims Adjustment Expense [Abstract] | ||||
Known title claims | $ 3,007 | $ 4,646 | ||
IBNR | 28,722 | 30,155 | ||
Total reserve for claims | $ 31,729 | $ 34,801 | $ 35,305 | $ 37,788 |
% of Known title claims | 9.50% | 13.40% | ||
% of IBNR | 90.50% | 86.60% | ||
% of Total reserve for claims | 100.00% | 100.00% |
Reserves for Claims Narrative (
Reserves for Claims Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||
Realized claim recoveries | $ 1,900 | $ 570 | $ 1,000 |
Provision rate for title insurance claims | (0.20%) | 2.40% | 0.20% |
Minimum | |||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||
Large claim threshold | $ 500 |
Earnings Per Common Share and_3
Earnings Per Common Share and Share Awards (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Earnings Per Common Share And Share Awards [Line Items] | |||
Incremental dilutive potential common shares, calculated using treasury stock method (in shares) | 10 | 10 | 7 |
Anti-dilutive shares excluded from computation of diluted earnings per share | 9 | 4 | 0 |
Options and SARs vested | 4 | ||
Fair value of options and SARs vested | $ 327 | ||
Weighted-average fair values for SARs issued (dollars per share) | $ 78.61 | $ 55.40 | $ 28.75 |
Compensation expense relating to SARs or options vesting | $ 327 | $ 219 | $ 132 |
Total unrecognized compensation cost related to unvested share-based compensation arrangements granted under stock award plans | $ 88 | ||
Weighted-average period of unrecognized compensation cost recognition | 3 months | ||
Number of stock options or SARs granted where exercise price was less than market price on date of grant | 0 | ||
Maximum | |||
Earnings Per Common Share And Share Awards [Line Items] | |||
Maximum shares of Company stock to be granted to key employees or directors | 250 | ||
SARs | |||
Earnings Per Common Share And Share Awards [Line Items] | |||
Intrinsic values of options exercised | $ 153 | $ 473 | $ 117 |
Earnings Per Common Share and_4
Earnings Per Common Share and Share Awards Computation Of Basic And Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |||
Net Income Attributable to the Company | $ 21,892 | $ 25,707 | $ 19,523 |
Weighted Average Shares Outstanding – Basic | 1,887 | 1,886 | 1,908 |
Incremental shares outstanding assuming the exercise of dilutive stock options and SARs (share-settled) | 10 | 10 | 7 |
Weighted average common shares outstanding – Diluted | 1,897 | 1,896 | 1,915 |
Basic Earnings per Common Share | $ 11.60 | $ 13.63 | $ 10.23 |
Diluted Earnings per Common Share | $ 11.54 | $ 13.56 | $ 10.19 |
Earnings Per Common Share and_5
Earnings Per Common Share and Share Awards Summary of Information of Fixed Stock Options (Details) - SARs - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||
Number Of Shares, Outstanding Beginning Balance | 25 | 25 | 22 | |
Number Of Shares, SARs granted | 4 | 4 | 5 | |
Number Of Shares, SARs exercised | (1) | (4) | (2) | |
Number Of Shares, Outstanding Ending Balance | 28 | 25 | 25 | 22 |
Number Of Shares, Exercisable as of December 31, 2018 | 27 | |||
Number Of Shares, Unvested as of December 31, 2018 | 1 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | ||||
Weighted Average Exercise Price, Outstanding Beginning Balance | $ 93.40 | $ 65.85 | $ 57.04 | |
Weighted Average Exercise Price, SARs granted | 188.71 | 192.71 | 93.87 | |
Weighted Average Exercise Price, SARs exercised | 41.50 | 36.38 | 32 | |
Weighted Average Exercise Price, Outstanding Ending Balance | 110.27 | $ 93.40 | $ 65.85 | $ 57.04 |
Weighted Average Exercise Price, Exercisable as of December 31, 2018 | 107.05 | |||
Weighted Average Exercise Price, Unvested as of December 31, 2018 | $ 188.71 | |||
Average Remaining Contractual Term, Outstanding Beginning Balance | 3 years 7 months 20 days | 3 years 11 months 23 days | 3 years 10 months 6 days | 3 years 11 months 4 days |
Average Remaining Contractual Term, Exercisable as of December 31, 2018 | 3 years 6 months 10 days | |||
Average Remaining Contractual Term, Unvested as of December 31, 2018 | 6 years 4 months 17 days | |||
Aggregate Intrinsic Value, Outstanding Beginning Balance | $ 2,624 | $ 837 | $ 945 | |
Aggregate Intrinsic Value, Outstanding Ending Balance | 2,019 | $ 2,624 | $ 837 | $ 945 |
Aggregate Intrinsic Value, Exercisable as of December 31, 2018 | 2,019 | |||
Aggregate Intrinsic Value, Unvested as of December 31, 2018 | $ 0 |
Earnings Per Common Share and_6
Earnings Per Common Share and Share Awards Summary of Share-based Award Transactions (Details) shares in Thousands | 12 Months Ended |
Dec. 31, 2018$ / sharesshares | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options Outstanding - Number Outstanding | shares | 0 |
$50.00 - $59.99 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
SARs exercise price, lower limit | $ 50 |
SARs exercise price, upper limit | $ 59.99 |
SARs Outstanding - As of December 31, 2018 | shares | 3 |
SARs Outstanding - Weighted Average Remaining Contractual Life | 4 months 13 days |
SARs Outstanding - Weighted Average Exercise Price | $ 50.50 |
SARs Exercisable - Number Exercisable | shares | 3 |
SARs Exercisable - Weighted Average Exercise Price | $ 50.50 |
$60.00 - $69.99 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
SARs exercise price, lower limit | 60 |
SARs exercise price, upper limit | $ 69.99 |
SARs Outstanding - As of December 31, 2018 | shares | 4 |
SARs Outstanding - Weighted Average Remaining Contractual Life | 2 years 4 months 20 days |
SARs Outstanding - Weighted Average Exercise Price | $ 68.70 |
SARs Exercisable - Number Exercisable | shares | 4 |
SARs Exercisable - Weighted Average Exercise Price | $ 68.70 |
$70.00 - $79.99 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
SARs exercise price, lower limit | 70 |
SARs exercise price, upper limit | $ 79.99 |
SARs Outstanding - As of December 31, 2018 | shares | 8 |
SARs Outstanding - Weighted Average Remaining Contractual Life | 2 years 6 months 29 days |
SARs Outstanding - Weighted Average Exercise Price | $ 72.44 |
SARs Exercisable - Number Exercisable | shares | 8 |
SARs Exercisable - Weighted Average Exercise Price | $ 72.44 |
$90.00 - $99.99 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
SARs exercise price, lower limit | 90 |
SARs exercise price, upper limit | $ 99.99 |
SARs Outstanding - As of December 31, 2018 | shares | 4 |
SARs Outstanding - Weighted Average Remaining Contractual Life | 4 years 4 months 17 days |
SARs Outstanding - Weighted Average Exercise Price | $ 93.87 |
SARs Exercisable - Number Exercisable | shares | 4 |
SARs Exercisable - Weighted Average Exercise Price | $ 93.87 |
$150.00 - $199.99 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
SARs exercise price, lower limit | 150 |
SARs exercise price, upper limit | $ 199.99 |
SARs Outstanding - As of December 31, 2018 | shares | 9 |
SARs Outstanding - Weighted Average Remaining Contractual Life | 5 years 10 months 17 days |
SARs Outstanding - Weighted Average Exercise Price | $ 190.71 |
SARs Exercisable - Number Exercisable | shares | 8 |
SARs Exercisable - Weighted Average Exercise Price | $ 191 |
$50.00 - $199.99 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
SARs exercise price, lower limit | 50 |
SARs exercise price, upper limit | $ 199.99 |
SARs Outstanding - As of December 31, 2018 | shares | 28 |
SARs Outstanding - Weighted Average Remaining Contractual Life | 3 years 7 months 20 days |
SARs Outstanding - Weighted Average Exercise Price | $ 110.27 |
SARs Exercisable - Number Exercisable | shares | 27 |
SARs Exercisable - Weighted Average Exercise Price | $ 107.05 |
Earnings Per Common Share and_7
Earnings Per Common Share and Share Awards Share-Based Assumptions (Details) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |||
Expected life in years | 7 years | 7 years | 7 years |
Volatility | 39.00% | 26.20% | 28.90% |
Interest rate | 3.10% | 2.00% | 1.70% |
Yield rate | 0.80% | 0.80% | 0.70% |
Earnings Per Common Share and_8
Earnings Per Common Share and Share Awards Schedule of Weighted Average Grant Date Fair Value of Stock Awards Plans (Details) - $ / shares | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Earnings Per Share [Abstract] | |||
Weighted average market price | $ 188.71 | $ 192.71 | $ 93.87 |
Weighted average grant-date fair value | $ 78.61 | $ 55.40 | $ 28.75 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
U.S. Federal statutory income tax rate | 21.00% | 35.00% | 34.60% |
U.S. Federal statutory income tax rate after the Tax Cuts And Jobs Act Of 2017 becomes effective | 21.00% | ||
Income tax benefit from Tax Cuts And Jobs Act of 2017 | $ 0 | $ 5,342 | $ 0 |
Diluter per share impact of income tax benefit from Tax Cuts And Jobs Act of 2017 | $ 2.82 |
Income Taxes Schedule of Compon
Income Taxes Schedule of Components of Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Federal | $ 9,156 | $ 9,163 | $ 5,745 |
State | 128 | 71 | 81 |
Total current | 9,284 | 9,234 | 5,826 |
Federal | (4,064) | (4,649) | 2,756 |
State | (10) | (15) | 34 |
Total deferred | (4,074) | (4,664) | 2,790 |
Provision for income taxes | $ 5,210 | $ 4,570 | $ 8,616 |
Income Taxes Schedule of Deferr
Income Taxes Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred income tax assets: | ||
Accrued benefits and retirement services | $ 2,758 | $ 2,449 |
Other-than-temporary impairment of assets | 198 | 265 |
Allowance for doubtful accounts | 82 | 102 |
Net operating loss carryforward | 28 | 33 |
Reinsurance and commission payable | 13 | 0 |
Postretirement benefit obligation | 8 | 18 |
Other | 359 | 878 |
Total deferred income tax assets | 3,446 | 3,745 |
Deferred income tax liabilities: | ||
Net unrealized gain on investments | 3,924 | 5,193 |
Intangible assets | 1,250 | 1,338 |
Excess of tax over book depreciation | 1,104 | 1,042 |
Recorded reserve for claims, net of statutory premium reserves | 599 | 4,126 |
Other | 753 | 672 |
Total deferred income tax liabilities | 7,630 | 12,371 |
Net deferred income tax liabilities | $ (4,184) | $ (8,626) |
Income Taxes Reconciliation of
Income Taxes Reconciliation of Income Tax (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Anticipated income tax expense | $ 5,684 | $ 10,595 | $ 9,734 |
State income taxes, net of federal income tax benefit | 101 | 46 | 53 |
Tax-exempt interest income, net of amortization | (1,026) | (1,298) | (1,075) |
Tax Cuts and Jobs Act | 0 | (5,342) | 0 |
Other, net | 451 | 569 | (96) |
Provision for income taxes | $ 5,210 | $ 4,570 | $ 8,616 |
U.S. Federal statutory income tax rate | 21.00% | 35.00% | 34.60% |
Leases (Details)
Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Leases [Abstract] | |||
Rent expense | $ 1,400 | $ 1,200 | $ 896 |
Leases Schedule of Future Minim
Leases Schedule of Future Minimum Rental Payments for Operating Leases (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Leases [Abstract] | |
2019 | $ 1,181 |
2020 | 1,009 |
2021 | 838 |
2022 | 617 |
2023 | 196 |
Thereafter | 166 |
Total | $ 4,007 |
Retirement Agreements and Oth_3
Retirement Agreements and Other Postretirement Benefit Plan (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018USD ($)h | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
DefinedContributionPlanMinimumNumberOfMonthsEmployedEligibility | 3 months | ||
Minimum number of years employed in order to participate in the 401(k) plan | 1 year | ||
Minimum number of hours worked annually in order to participate in the 401(k) plan | h | 1,000 | ||
Defined contribution plan contribution percent | 3.00% | ||
Expenses related to the 401(k) plan | $ 1,200 | $ 1,600 | $ 810 |
Amount accrued for all deferred compensation plan agreements | 10,900 | 9,500 | |
Amount recognized in accumulated other comprehensive income, before tax | (41) | (87) | 166 |
Amount recognized in accumulated other comprehensive income, net of tax | (32) | $ (58) | $ (110) |
Defined Benefit Plan, Expected Future Benefit Payment [Abstract] | |||
2019 | 12 | ||
2020 | 14 | ||
2021 | 16 | ||
2022 | 23 | ||
2023 | 32 | ||
Next 5 years thereafter | $ 192 | ||
Minimum | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Noncompete period following employment | 2 years |
Retirement Agreements and Oth_4
Retirement Agreements and Other Postretirement Benefit Plan Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Retirement Benefits [Abstract] | |||
Service cost – benefits earned during the year | $ 0 | $ 0 | $ 10 |
Interest cost on the projected benefit obligation | 32 | 37 | 35 |
Amortization of unrecognized prior service cost | 0 | 0 | 0 |
Amortization of unrecognized loss | 0 | 9 | 9 |
Net periodic benefits cost at end of year | $ 32 | $ 46 | $ 54 |
Retirement Agreements and Oth_5
Retirement Agreements and Other Postretirement Benefit Plan Effected of the Funded Status on the Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Retirement Benefits [Abstract] | ||
Fully eligible active employee | $ (882) | $ (896) |
Non-eligible active employees | 0 | 0 |
Plan assets | 0 | 0 |
Funded status of accumulated postretirement benefit obligation, recognized in other liabilities | $ (882) | $ (896) |
Retirement Agreements and Oth_6
Retirement Agreements and Other Postretirement Benefit Plan Development of the Accumulated Postretirement Benefit Obligation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Accrued postretirement benefit obligation at beginning of year | $ (896) | $ (929) | |
Service cost – benefits earned during the year | 0 | 0 | $ (10) |
Interest cost on projected benefit obligation | (32) | (37) | (35) |
Actuarial gain | 46 | 70 | |
Accrued postretirement benefit obligation at end of year | $ (882) | $ (896) | $ (929) |
Retirement Agreements and Oth_7
Retirement Agreements and Other Postretirement Benefit Plan Changes in Amounts Related to Accumulated Other Comprehensive Income, Pre-tax (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Balance at beginning of year | $ (87) | $ 166 | |
Unrecognized prior service cost | 0 | 0 | |
Amortization of loss, net | 0 | (9) | $ (9) |
Actuarial gain | (46) | (70) | 1 |
Balance at end of year | $ (41) | $ (87) | $ 166 |
Retirement Agreements and Oth_8
Retirement Agreements and Other Postretirement Benefit Plan Amounts in Accumulated Other Comprehensive Income, Pre-tax, to be Recognized as Components of Net Periodic Benefit Costs (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Retirement Benefits [Abstract] | |
Amortization of unrecognized prior service cost | $ 0 |
Amortization of unrecognized loss | 0 |
Net periodic benefit cost at end of year | $ 0 |
Retirement Agreements and Oth_9
Retirement Agreements and Other Postretirement Benefit Plan Effects on Net Periodic Postretirement Benefit Cost and Accumulated Postretirement Benefit Obligation (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Retirement Benefits [Abstract] | |
One-Percent Point Increase: Effect on the service cost component | $ 0 |
One-Percent Point Increase: Effect on interest cost | 7 |
One-Percent Point Increase: Total effect on the net periodic postretirement benefit cost | 7 |
One-Percent Point Decrease: Effect on the service cost component | 0 |
One-Percent Point Decrease: Effect on interest cost | (5) |
One-Percent Point Decrease: Total effect on the net periodic postretirement benefit cost | (5) |
One-Percent Point Increase: Effect on those currently receiving benefits (retirees and spouses) | 0 |
One-Percent Point Increase: Effect on active fully eligible | 176 |
One-Percent Point Increase: Effect on actives not yet eligible | 0 |
One-Percent Point Increase: Total effect on the accumulated postretirement benefit obligation | 176 |
One-Percent Point Decrease: Effect on those currently receiving benefits (retirees and spouses) | 0 |
One-Percent Point Decrease: Effect on active fully eligible | (139) |
One-Percent Point Decrease: Effect on actives not yet eligible | 0 |
One-Percent Point Decrease: Total effect on the accumulated postretirement benefit obligation | $ (139) |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Commitments and Contingencies Disclosure [Abstract] | ||
Cash held for escrow and trust deposits | $ 31.6 | $ 20.9 |
Like-kind exchange deposits and reverse exchange property | $ 308.7 | $ 185 |
Segment Information Selected Fi
Segment Information Selected Financial Information By Segment (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($)segment | Dec. 31, 2016USD ($) | |
Segment Reporting Information [Line Items] | |||
Number of reportable segments | segment | 1 | ||
Insurance and other services revenues | $ 152,773 | $ 153,982 | $ 131,142 |
Investment income | 3,596 | 6,604 | 6,578 |
Net realized gain (loss) on investments | (110) | 1,041 | 768 |
Total revenues | (156,259) | (161,627) | (138,488) |
Operating expenses | 129,190 | 131,356 | 110,357 |
Income before income taxes | 27,069 | 30,271 | 28,131 |
Total assets | 244,268 | 248,913 | 228,938 |
Title Insurance | |||
Segment Reporting Information [Line Items] | |||
Insurance and other services revenues | 153,687 | 153,469 | 126,589 |
Investment income | 2,542 | 5,834 | 6,146 |
Net realized gain (loss) on investments | (167) | 932 | 645 |
Total revenues | (156,062) | (160,235) | (133,380) |
Operating expenses | 126,367 | 129,073 | 105,882 |
Income before income taxes | 29,695 | 31,162 | 27,498 |
Total assets | 199,531 | 193,828 | 183,764 |
All Other | |||
Segment Reporting Information [Line Items] | |||
Insurance and other services revenues | 8,315 | 7,307 | 6,731 |
Investment income | 1,054 | 770 | 642 |
Net realized gain (loss) on investments | 57 | 109 | 123 |
Total revenues | (9,426) | (8,186) | (7,496) |
Operating expenses | 8,424 | 7,913 | 6,583 |
Income before income taxes | 1,002 | 273 | 913 |
Total assets | 44,737 | 55,085 | 45,174 |
Intersegment Eliminations | |||
Segment Reporting Information [Line Items] | |||
Insurance and other services revenues | (9,229) | (6,794) | (2,178) |
Investment income | 0 | 0 | (210) |
Net realized gain (loss) on investments | 0 | 0 | 0 |
Total revenues | 9,229 | 6,794 | 2,388 |
Operating expenses | (5,601) | (5,630) | (2,108) |
Income before income taxes | (3,628) | (1,164) | (280) |
Total assets | $ 0 | $ 0 | $ 0 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) | 12 Months Ended | ||
Dec. 31, 2018Vote$ / Rightshares | Dec. 31, 2017shares | Oct. 31, 2012$ / sharesshares | |
Class of Stock [Line Items] | |||
Number of votes | Vote | 100 | ||
Shares of Class A Preferred Stock Available Per Right | 0.01 | ||
Threshold of days following requirements for exercise rights | 10 days | ||
Redemption price per right | $ / Right | 0.01 | ||
Purchase price of preferred stock per Unit | $ / shares | $ 220 | ||
Preferred stock, shares authorized | 1,000,000 | 1,000,000 | |
Preferred Class A | |||
Class of Stock [Line Items] | |||
Preferred stock, shares authorized | 200,000 | 200,000 | 200,000 |
Minimum | |||
Class of Stock [Line Items] | |||
Threshold of common stock percentage for common stock diluted | 15.00% | ||
Ownership percentage of common stock | 15.00% | ||
Threshold of beneficial ownership of outstanding common stock for the Rights exchanging | 15.00% | ||
Threshold of percentage of assets or earning power sold or transferred for merger | 50.00% | ||
Threshold of prior acquisition common stock percentage for the Right exchanging | 50.00% | ||
Plan Amendment [Member] | |||
Class of Stock [Line Items] | |||
Purchase price of preferred stock per Unit | $ / shares | $ 80 | ||
Plan Amendment [Member] | Preferred Class A | |||
Class of Stock [Line Items] | |||
Preferred stock, shares authorized | 100,000 |
Concentration of Credit Risk (D
Concentration of Credit Risk (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Risks and Uncertainties [Abstract] | ||||
Threshold of not insured deposits by FDIC | $ 250 | |||
Cash and cash equivalents | 18,694 | $ 20,214 | $ 27,928 | $ 21,790 |
Cash and cash equivalents uninsured amount | $ 17,600 | $ 19,300 |
Business Concentration (Details
Business Concentration (Details) - Geographic Concentration Risk | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
North Carolina | |||
Concentration Risk [Line Items] | |||
Concentration percentage | 40.30% | 37.80% | 35.00% |
Texas | |||
Concentration Risk [Line Items] | |||
Concentration percentage | 18.50% | 18.90% | 19.70% |
South Carolina | |||
Concentration Risk [Line Items] | |||
Concentration percentage | 10.20% | 10.50% | 10.30% |
Related Party Transactions Summ
Related Party Transactions Summary Of Approximate Values By Year Found Within Consolidated Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Related Party Transaction [Line Items] | ||
Other investments | $ 12,436 | $ 12,032 |
Premiums and fees receivable | 12,128 | 10,031 |
Title Insurance Agencies | ||
Related Party Transaction [Line Items] | ||
Other investments | 5,847 | 6,594 |
Premiums and fees receivable | $ 409 | $ 720 |
Related Party Transactions Su_2
Related Party Transactions Summary Of Approximate Values By Year Found Within Consolidated Statements Of Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Related Party Transaction [Line Items] | |||
Net premiums written | $ 138,125 | $ 140,502 | $ 122,522 |
Commissions to agents | 65,775 | 68,643 | 63,643 |
Title Insurance Agencies | |||
Related Party Transaction [Line Items] | |||
Net premiums written | 13,960 | 14,645 | 15,318 |
Non-title services and other investment income | 2,444 | 2,240 | 2,317 |
Commissions to agents | $ 9,259 | $ 9,864 | $ 10,394 |
Business Combinations, Intang_3
Business Combinations, Intangible Assets and Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2018 | |
Business Combinations [Abstract] | ||
Impairment of Intangible Assets (Excluding Goodwill) | $ 154 | |
Goodwill | $ 4,400 | |
Title Plants | $ 690 | |
Goodwill, Impairment Loss | $ 29 |
Business Combinations, Intang_4
Business Combinations, Intangible Assets and Goodwill Schedule of Aggregate Amortization Expense for Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Business Combinations [Abstract] | ||
2019 | $ 504 | |
2020 | 569 | |
2021 | 562 | |
2022 | 525 | |
2023 | 525 | |
Thereafter | 3,745 | |
Identifiable intangible assets, net | $ 6,430 | $ 7,007 |
Business Combinations, Intang_5
Business Combinations, Intangible Assets and Goodwill Schedule of Finite-Lived Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Finite-Lived Intangible Assets [Line Items] | ||
Referral relationships | $ 6,416 | $ 6,416 |
Non-complete agreements | 1,406 | 1,406 |
Tradename | 560 | 560 |
Identifiable intangible assets, gross | 8,382 | 8,382 |
Accumulated amortization | (1,952) | (1,375) |
Identifiable intangible assets, net | $ 6,430 | $ 7,007 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income Balances Of Each Component Of Accumulated Other Comprehensive Income, Net Of Tax (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Beginning balance at January 1 | $ 15,945 | ||
CumulativeEffectOnAccumulatedOtherComprehensiveIncomeNetOfTax1 | (13,627) | ||
Other comprehensive loss before reclassifications | (1,462) | $ 4,968 | $ 758 |
Amounts reclassified from accumulated other comprehensive income | 93 | (784) | (480) |
Net current-period other comprehensive loss | (1,369) | 4,184 | 278 |
Ending balance | 949 | 15,945 | |
Unrealized Gains and Losses On Available-for-Sale Securities | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Beginning balance at January 1 | 16,003 | 11,871 | 11,598 |
CumulativeEffectOnAccumulatedOtherComprehensiveIncomeNetOfTax1 | (13,616) | ||
Other comprehensive loss before reclassifications | (1,499) | 4,922 | 758 |
Amounts reclassified from accumulated other comprehensive income | 93 | (790) | (485) |
Net current-period other comprehensive loss | (1,406) | 4,132 | 273 |
Ending balance | 981 | 16,003 | 11,871 |
Postretirement Benefits Plans | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Beginning balance at January 1 | (58) | (110) | (115) |
CumulativeEffectOnAccumulatedOtherComprehensiveIncomeNetOfTax1 | (11) | ||
Other comprehensive loss before reclassifications | 37 | 46 | 0 |
Amounts reclassified from accumulated other comprehensive income | 0 | 6 | 5 |
Net current-period other comprehensive loss | 37 | 52 | 5 |
Ending balance | (32) | (58) | (110) |
Accumulated Other Comprehensive Income | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Beginning balance at January 1 | 15,945 | 11,761 | 11,483 |
Ending balance | $ 949 | $ 15,945 | $ 11,761 |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income Reclassification Out Of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Net realized gain (loss) on investment | $ (110) | $ 1,041 | $ 768 | |
Prior year service cost | 0 | 0 | ||
Unrecognized loss | 0 | (9) | (9) | |
Income before Income Taxes | 27,069 | 30,271 | 28,131 | |
Tax | (5,210) | (4,570) | (8,616) | |
Net income | 21,859 | 25,701 | 19,515 | |
Reclassification Out Of Accumulated Other Comprehensive Income | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Net income | (93) | 784 | 480 | |
Reclassification Out Of Accumulated Other Comprehensive Income | Unrealized Gains And Losses On Available-For-Sale Securities | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Net realized gain (loss) on investment | (117) | 1,227 | 973 | |
Other-than-temporary impairments | 0 | (26) | (234) | |
Income before Income Taxes | (117) | 1,201 | 739 | |
Tax | 24 | (411) | (254) | |
Net income | (93) | 790 | 485 | |
Reclassification Out Of Accumulated Other Comprehensive Income | Postretirement Benefits Plans | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Prior year service cost | 0 | 0 | 0 | |
Unrecognized loss | 0 | (9) | (9) | |
Income before Income Taxes | [1] | 0 | (9) | (9) |
Tax | 0 | 3 | 4 | |
Net income | $ 0 | $ (6) | $ (5) | |
[1] | These accumulated other comprehensive income components are not reclassified to net income in their entirety in the same reporting period. The amounts are presented within salaries, employee benefits and payroll taxes on the Consolidated Statements of Income as amortized. Amortization related to postretirement benefit plans is included in the computation of net periodic pension costs, as discussed in Note 10. |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | $ 14,178 | $ 13,020 | $ 8,183 |
Total revenues | (156,259) | (161,627) | (138,488) |
Escrow and other title-related fees | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 7,096 | 6,892 | 2,532 |
Non-title services | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 7,082 | 6,128 | 5,651 |
Net premiums written | |||
Disaggregation of Revenue [Line Items] | |||
Other sources of revenue | 138,125 | 140,502 | 122,522 |
Investment related revenue | |||
Disaggregation of Revenue [Line Items] | |||
Other sources of revenue | 3,486 | 7,645 | 7,346 |
Other | |||
Disaggregation of Revenue [Line Items] | |||
Other sources of revenue | $ 470 | $ 460 | $ 437 |
Schedule I (Details)
Schedule I (Details) $ in Thousands | Dec. 31, 2018USD ($) | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||
Cost | $ 163,049 | [1],[2] |
Market Value | 181,526 | [2] |
Amount at which shown in the Balance Sheet | 181,526 | [2],[3] |
Investments in related party accounted for under the cost and equity method | 1,143 | |
Fixed maturity securities | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||
Cost | 87,714 | [1] |
Market Value | 88,957 | |
Amount at which shown in the Balance Sheet | 88,957 | [3] |
Government obligation | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||
Cost | 1,023 | |
Market Value | 1,016 | |
Amount at which shown in the Balance Sheet | 1,016 | |
General obligations of U.S. states, territories and political subdivisions | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||
Cost | 19,310 | |
Market Value | 19,396 | |
Amount at which shown in the Balance Sheet | 19,396 | |
Special revenue issuer obligations of U.S. states, territories and political subdivisions | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||
Cost | 41,333 | |
Market Value | 42,182 | |
Amount at which shown in the Balance Sheet | 42,182 | |
Public utilities | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||
Cost | 15,550 | |
Market Value | 15,609 | |
Amount at which shown in the Balance Sheet | 15,609 | |
Corporate debt securities | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||
Cost | 10,498 | |
Market Value | 10,754 | |
Amount at which shown in the Balance Sheet | 10,754 | |
Equity securities | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||
Cost | 31,255 | [1] |
Market Value | 48,489 | |
Amount at which shown in the Balance Sheet | 48,489 | [3] |
Public utilities | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||
Cost | 303 | |
Market Value | 444 | |
Amount at which shown in the Balance Sheet | 444 | |
Banks, trusts and insurance companies | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||
Cost | 3,195 | |
Market Value | 5,813 | |
Amount at which shown in the Balance Sheet | 5,813 | |
Industrial, miscellaneous and all other | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||
Cost | 24,930 | |
Market Value | 35,708 | |
Amount at which shown in the Balance Sheet | 35,708 | |
Technology | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||
Cost | 2,827 | |
Market Value | 6,524 | |
Amount at which shown in the Balance Sheet | 6,524 | |
Short-term investments | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||
Cost | 32,787 | |
Market Value | 32,787 | |
Amount at which shown in the Balance Sheet | 32,787 | |
Other investments | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||
Cost | 11,293 | |
Market Value | 11,293 | |
Amount at which shown in the Balance Sheet | 11,293 | |
Total other investments | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||
Cost | 44,080 | |
Market Value | 44,080 | |
Amount at which shown in the Balance Sheet | $ 44,080 | |
[1] | Fixed maturity securities are shown at amortized cost and equity securities are shown at original cost | |
[2] | The above summary of investments does not include investments in related parties accounted for under the cost and equity methods of accounting in the amount of $1,143. | |
[3] | All fixed maturity securities presented are classified as available-for-sale and shown at estimated fair value. Equity securities are shown at fair value. |
Schedule II - Condensed Balanc
Schedule II - Condensed Balance Sheets (Details) - USD ($) shares in Thousands, $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Condensed Financial Statements, Captions [Line Items] | ||||
Cash and cash equivalents | $ 18,694 | $ 20,214 | $ 27,928 | $ 21,790 |
Fixed maturity securities, available-for-sale, at fair value | 88,957 | 103,341 | ||
Equity securities, at fair value | 48,489 | 47,367 | ||
Short-term investments | 32,787 | 23,780 | ||
Investments in affiliated companies | 6,589 | 5,439 | 4,744 | |
Other investments | 12,436 | 12,032 | ||
Premiums and fees receivable | 12,128 | 10,031 | ||
Accrued interest and dividends | 946 | 1,100 | ||
Property, net | 10,304 | 10,173 | ||
Total Assets | 244,268 | 248,913 | 228,938 | |
Accounts payable and accrued liabilities | 27,735 | 27,565 | ||
Deferred income taxes, net | 4,184 | 8,626 | ||
Total liabilities | 68,629 | 70,992 | ||
Preferred stock (1,000 authorized shares; no shares issued) | 0 | 0 | ||
Common stock – no par value (10,000 authorized shares; 1,887 and 1,886 shares issued and outstanding as of December 31, 2018 and December 31, 2017, respectively, excluding in each period 292 shares of common stock held by the Company) | 0 | 0 | ||
Retained earnings | 174,690 | 161,891 | ||
Accumulated other comprehensive income | 949 | 15,945 | ||
Total stockholders’ equity | 175,639 | 177,836 | ||
Total Liabilities and Stockholders’ Equity | $ 244,268 | $ 248,913 | ||
Preferred stock, shares authorized | 1,000 | 1,000 | ||
Preferred stock, shares issued | 0 | 0 | ||
Common stock, no par value | ||||
Common stock, shares authorized | 10,000 | 10,000 | ||
Common stock, shares issued | 1,887 | 1,886 | ||
Common stock, shares outstanding | 1,887 | 1,886 | ||
Common stock, held by Company's subsidiary | 292 | 292 | ||
Parent Company | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Cash and cash equivalents | $ 1,540 | $ 5,872 | $ 10,178 | $ 8,347 |
Fixed maturity securities, available-for-sale, at fair value | 16,947 | 22,714 | ||
Equity securities, at fair value | 3,360 | 3,692 | ||
Short-term investments | 9,358 | 5,809 | ||
Investments in affiliated companies | 134,551 | 128,580 | ||
Other investments | 5,151 | 5,167 | ||
Prepaid expenses and other receivables | 1,846 | 1,724 | ||
Current income taxes receivable | 2,438 | 3,879 | ||
Accrued interest and dividends | 186 | 198 | ||
Property, net | 2,499 | 2,254 | ||
Total Assets | 177,876 | 179,889 | ||
Accounts payable and accrued liabilities | 2,190 | 1,916 | ||
Deferred income taxes, net | 47 | 137 | ||
Total liabilities | 2,237 | 2,053 | ||
Preferred stock (1,000 authorized shares; no shares issued) | 0 | 0 | ||
Common stock – no par value (10,000 authorized shares; 1,887 and 1,886 shares issued and outstanding as of December 31, 2018 and December 31, 2017, respectively, excluding in each period 292 shares of common stock held by the Company) | 0 | 0 | ||
Retained earnings | 174,690 | 161,891 | ||
Accumulated other comprehensive income | 949 | 15,945 | ||
Total stockholders’ equity | 175,639 | 177,836 | ||
Total Liabilities and Stockholders’ Equity | $ 177,876 | $ 179,889 | ||
Preferred stock, shares authorized | 1,000 | 1,000 | ||
Preferred stock, shares issued | 0 | 0 | ||
Common stock, no par value | ||||
Common stock, shares authorized | 10,000 | 10,000 | ||
Common stock, shares issued | 1,887 | 1,886 | ||
Common stock, shares outstanding | 1,887 | 1,886 | ||
Common stock, held by Company's subsidiary | 291 | 291 |
Schedule II - Condensed Statem
Schedule II - Condensed Statement of Income (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Condensed Financial Statements, Captions [Line Items] | |||
Interest and dividends | $ 4,619 | $ 4,445 | $ 4,684 |
Net realized gain (loss) on investments | 110 | (1,041) | (768) |
Net unrealized loss on equity investments | (4,130) | 0 | 0 |
Other | 470 | 460 | 437 |
Total Revenues | 156,259 | 161,627 | 138,488 |
Personnel expenses | 43,552 | 39,937 | 31,479 |
Office and technology expenses | 8,813 | 8,172 | 6,446 |
Other expenses | 11,382 | 11,293 | 8,546 |
Income before Income Taxes | 27,069 | 30,271 | 28,131 |
Income Tax Benefit | 5,210 | 4,570 | 8,616 |
Net Income | 21,859 | 25,701 | 19,515 |
Net Loss Attributable to Noncontrolling Interests | (33) | (6) | (8) |
Net Income Attributable to the Company | $ 21,892 | $ 25,707 | $ 19,523 |
Basic Earnings per Common Share | $ 11.60 | $ 13.63 | $ 10.23 |
Weighted Average Shares Outstanding – Basic | 1,887 | 1,886 | 1,908 |
Diluted Earnings per Common Share | $ 11.54 | $ 13.56 | $ 10.19 |
Weighted Average Shares Outstanding – Diluted | 1,897 | 1,896 | 1,915 |
Common Stock, Dividends, Per Share, Declared | $ 12.20 | $ 3.75 | $ 0.72 |
Parent Company | |||
Condensed Financial Statements, Captions [Line Items] | |||
Interest and dividends | $ 668 | $ 502 | $ 525 |
Net realized gain (loss) on investments | (27) | (36) | (78) |
Net unrealized loss on equity investments | (384) | 0 | 0 |
Rental income | 842 | 813 | 772 |
Other | 930 | 220 | 77 |
Total Revenues | 2,083 | 1,571 | 1,452 |
Personnel expenses | 1,085 | 1,004 | 667 |
Office and technology expenses | 355 | 349 | 366 |
Other expenses | 892 | 763 | 775 |
Total Operating Expenses | 2,332 | 2,116 | 1,808 |
Equity in Net Income of Affiliated Companies | 22,014 | 25,634 | 19,665 |
Income before Income Taxes | 21,765 | 25,089 | 19,309 |
Income Tax Benefit | (94) | (612) | (206) |
Net Income | 21,859 | 25,701 | 19,515 |
Net Loss Attributable to Noncontrolling Interests | (33) | (6) | (8) |
Net Income Attributable to the Company | $ 21,892 | $ 25,707 | $ 19,523 |
Basic Earnings per Common Share | $ 11.60 | $ 13.63 | $ 10.23 |
Weighted Average Shares Outstanding – Basic | 1,887 | 1,886 | 1,908 |
Diluted Earnings per Common Share | $ 11.54 | $ 13.56 | $ 10.19 |
Weighted Average Shares Outstanding – Diluted | 1,897 | 1,896 | 1,915 |
Schedule II - Condensed Stat_2
Schedule II - Condensed Statement of Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Operating Activities | |||
Net income | $ 21,859 | $ 25,701 | $ 19,515 |
Depreciation | 1,657 | 1,435 | 1,307 |
Amortization of investments, net | 748 | 788 | 771 |
Net loss on disposals of property | 12 | (23) | (12) |
Net realized loss (gain) on securities | 117 | (1,201) | (739) |
Net unrealized loss on equity investments | 4,130 | 0 | 0 |
Net (earnings) loss from other investments | (7) | (22) | (29) |
Benefit for deferred income taxes | (4,074) | (4,664) | 2,790 |
(Increase) decrease in receivables | (2,097) | (1,505) | (261) |
Decrease (increase) in income taxes receivable | 385 | (385) | 0 |
Decrease (increase) in other assets | 540 | 388 | 2,631 |
Increase (decrease) in accounts payable and accrued liabilities | 216 | 1,463 | (582) |
Net cash provided by (used in) operating activities | 24,386 | 19,893 | 22,567 |
Investing Activities | |||
Purchases of short-term securities | (94,781) | (26,414) | (1,775) |
Purchases of and net earnings from other investments | (1,544) | (1,873) | (2,744) |
Proceeds from sales and maturities of fixed maturity securities | 11,520 | 17,445 | 17,011 |
Proceeds from sales and maturities of short-term investments | 86,105 | 9,228 | 2,082 |
Proceeds from sales and distributions of other investments | 3,055 | 2,696 | 3,437 |
Proceeds from sales of other assets | 7 | 22 | 18 |
Purchases of property | (1,859) | (2,884) | (2,457) |
Proceeds from disposals of property | 59 | 51 | 92 |
Net cash provided by (used in) investing activities | (2,807) | (20,288) | (8,839) |
Financing Activities | |||
Repurchases of common stock | (29) | (246) | (6,220) |
Exercise of stock appreciation rights | (1) | 0 | 0 |
Proceeds from note payable | 0 | 0 | 6,000 |
Payments on note payable | 0 | 0 | (6,000) |
Dividends paid | (23,017) | (7,073) | (1,370) |
Net cash provided by (used in) financing activities | (23,099) | (7,319) | (7,590) |
Net (Decrease) Increase in Cash and Cash Equivalents | (1,520) | (7,714) | 6,138 |
Cash and Cash Equivalents, Beginning of Period | 20,214 | 27,928 | 21,790 |
Cash and Cash Equivalents, End of Period | 18,694 | 20,214 | 27,928 |
Parent Company | |||
Operating Activities | |||
Net income | 21,859 | 25,701 | 19,515 |
Equity in net earnings of subsidiaries | (22,014) | (25,634) | (19,665) |
Depreciation | 98 | 98 | 93 |
Amortization of investments, net | 222 | 158 | 164 |
Share-based compensation expense related to stock appreciation rights and options | 327 | 219 | 132 |
Net loss on disposals of property | 0 | 3 | 0 |
Net realized loss (gain) on securities | (27) | (36) | (78) |
Net unrealized loss on equity investments | 384 | 0 | 0 |
Net (earnings) loss from other investments | (81) | 5 | (13) |
Benefit for deferred income taxes | (51) | (211) | (18) |
(Increase) decrease in receivables | (122) | 362 | 1,037 |
Decrease (increase) in income taxes receivable | 1,441 | (1,316) | (797) |
Decrease (increase) in other assets | 12 | (112) | 34 |
Increase (decrease) in accounts payable and accrued liabilities | 274 | (455) | (896) |
Net cash provided by (used in) operating activities | 2,322 | (1,218) | (492) |
Investing Activities | |||
Purchase of subsidiary | 0 | 0 | (10,918) |
Dividends received from subsidiaries | 15,125 | 14,816 | 17,331 |
Purchases of debt and equity securities | (476) | (13,178) | (1,783) |
Purchases of short-term securities | (33,835) | (5,835) | (3,162) |
Purchases of and net earnings from other investments | (579) | (1,050) | (1,553) |
Proceeds from sales and maturities of fixed maturity securities | 5,753 | 6,617 | 6,816 |
Proceeds from sales and maturities of short-term investments | 30,403 | 3,189 | 3,005 |
Proceeds from sales and distributions of other investments | 669 | 196 | 322 |
Proceeds from sales of other assets | 1 | 0 | 0 |
Purchases of property | (343) | (14) | (145) |
Net cash provided by (used in) investing activities | 16,718 | 4,741 | 9,913 |
Financing Activities | |||
Repurchases of common stock | (29) | (246) | (6,220) |
Exercise of stock appreciation rights | (1) | 0 | 0 |
Proceeds from note payable | 0 | 0 | 6,000 |
Payments on note payable | 0 | 0 | (6,000) |
Capital contribution to subsidiary | (325) | (510) | 0 |
Dividends paid | (23,017) | (7,073) | (1,370) |
Net cash provided by (used in) financing activities | (23,372) | (7,829) | (7,590) |
Net (Decrease) Increase in Cash and Cash Equivalents | (4,332) | (4,306) | 1,831 |
Cash and Cash Equivalents, Beginning of Period | 5,872 | 10,178 | 8,347 |
Cash and Cash Equivalents, End of Period | 1,540 | 5,872 | 10,178 |
Supplemental Disclosures: | |||
Income tax payments, net | $ 5,448 | $ 11,447 | $ 4,964 |
Schedule II - Notes to Condens
Schedule II - Notes to Condensed Financial Statements (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Condensed Financial Statements, Captions [Line Items] | ||||
Cash dividends paid to parent by wholly owned subsidiaries | $ 15,125 | $ 14,816 | $ 17,331 | |
Investors Title Insurance Company, net | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Cash dividends paid to Parent Company | 12,749 | [1] | 13,236 | 15,838 |
Cash dividends paid to parent by wholly owned subsidiaries | 16,307 | 14,330 | 16,048 | |
Dividend received from parent company | 3,558 | 1,094 | 210 | |
Investors Title Exchange Corporation | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Cash dividends paid to parent by wholly owned subsidiaries | 500 | 300 | 100 | |
Investors Title Accommodation Corporation | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Cash dividends paid to parent by wholly owned subsidiaries | 40 | 80 | 45 | |
Investors Capital Management Company | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Cash dividends paid to parent by wholly owned subsidiaries | 0 | 0 | 0 | |
Investors Trust Company | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Cash dividends paid to parent by wholly owned subsidiaries | 200 | 200 | 750 | |
Investors Title Commercial Agency, LLC | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Cash dividends paid to parent by wholly owned subsidiaries | 750 | 150 | 125 | |
National Investors Holdings [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Cash dividends paid to parent by wholly owned subsidiaries | $ 886 | $ 850 | $ 473 | |
[1] | Total dividends of $16,307, $14,330 and $16,048 paid to the Parent Company in 2018, 2017 and 2016, respectively, netted with dividends of $3,558, $1,094 and $210 received from the Parent Company in 2018, 2017 and 2016, respectively. |
Schedule III (Details)
Schedule III (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items] | |||
Deferred Policy Acquisition Cost | $ 0 | $ 0 | $ 0 |
Future Policy Benefits, Losses, Claims and Loss Expenses | 31,729 | 34,801 | 35,305 |
Unearned Premiums | 0 | 0 | 0 |
Other Policy Claims and Benefits Payable | 459 | 537 | 476 |
Premium Revenue | 138,125 | 140,502 | 122,522 |
Net Investment Income | 3,596 | 6,604 | 6,578 |
Benefits, Claims. Losses and Settlement Expenses | (332) | 3,311 | 243 |
Amortization of Deferred Policy Acquisition Costs | 0 | 0 | 0 |
Other Operating Expenses | 129,522 | 128,045 | 110,114 |
Title Insurance | |||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items] | |||
Deferred Policy Acquisition Cost | 0 | 0 | 0 |
Future Policy Benefits, Losses, Claims and Loss Expenses | 31,729 | 34,801 | 35,305 |
Unearned Premiums | 0 | 0 | 0 |
Other Policy Claims and Benefits Payable | 459 | 537 | 476 |
Premium Revenue | 138,125 | 140,502 | 122,522 |
Net Investment Income | 2,542 | 5,834 | 5,936 |
Benefits, Claims. Losses and Settlement Expenses | (332) | 3,311 | 243 |
Amortization of Deferred Policy Acquisition Costs | 0 | 0 | 0 |
Other Operating Expenses | 121,207 | 120,225 | 103,581 |
All Other | |||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items] | |||
Deferred Policy Acquisition Cost | 0 | 0 | 0 |
Future Policy Benefits, Losses, Claims and Loss Expenses | 0 | 0 | 0 |
Unearned Premiums | 0 | 0 | 0 |
Other Policy Claims and Benefits Payable | 0 | 0 | 0 |
Premium Revenue | 0 | 0 | 0 |
Net Investment Income | 1,054 | 770 | 642 |
Benefits, Claims. Losses and Settlement Expenses | 0 | 0 | 0 |
Amortization of Deferred Policy Acquisition Costs | 0 | 0 | 0 |
Other Operating Expenses | $ 8,315 | $ 7,820 | $ 6,533 |
Schedule IV (Details)
Schedule IV (Details) - Title Insurance - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | |||
Direct Premiums Earned | $ 138,448 | $ 140,763 | $ 122,646 |
Ceded Premiums Earned | 327 | 264 | 141 |
Assumed Premiums Earned | 4 | 3 | 17 |
Net Amount | $ 138,125 | $ 140,502 | $ 122,522 |
Percentages of Amount Assumed to Net | 0.00% | 0.00% | 0.01% |
Schedule V (Details)
Schedule V (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Valuation provision | |||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Period | $ 376 | $ 372 | $ 3,553 |
Additions Charged to Costs and Expenses | 4,086 | 5,784 | 2,679 |
Additions Charge to Other Accounts – Describe | 0 | 0 | 0 |
Deductions – Describe | (4,158) | (5,780) | (5,860) |
Balance at End of Period | 304 | 376 | 372 |
Reserves for claims | |||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Period | 34,801 | 35,305 | 37,788 |
Additions Charged to Costs and Expenses | (332) | 3,311 | 243 |
Additions Charge to Other Accounts – Describe | 0 | 0 | 0 |
Deductions – Describe | (2,740) | (3,815) | (2,726) |
Balance at End of Period | $ 31,729 | $ 34,801 | $ 35,305 |