Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2019 | Jul. 31, 2019 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Entity Interactive Data Current | Yes | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Entity Registrant Name | DONEGAL GROUP INC | |
Entity Central Index Key | 0000800457 | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Shell Company | false | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Address, State or Province | PA | |
Class A Common Stock [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 22,996,271 | |
Title of 12(b) Security | Common Stock | |
Trading Symbol | DGICA | |
Security Exchange Name | NASDAQ | |
Class B Common Stock [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 5,576,775 | |
Title of 12(b) Security | Common Stock | |
Trading Symbol | DGICB | |
Security Exchange Name | NASDAQ |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Fixed maturities | ||
Held to maturity, at amortized cost | $ 434,458,088 | $ 402,798,518 |
Available for sale, at fair value | 569,749,979 | 526,558,304 |
Equity securities, at fair value | 46,767,296 | 43,667,009 |
Investment in affiliate | 41,025,975 | |
Short-term investments, at cost, which approximates fair value | 24,452,789 | 16,748,760 |
Total investments | 1,075,428,152 | 1,030,798,566 |
Cash | 35,945,567 | 52,594,461 |
Accrued investment income | 7,298,206 | 6,561,199 |
Premiums receivable | 176,257,781 | 156,702,250 |
Reinsurance receivable | 357,629,286 | 343,369,065 |
Deferred policy acquisition costs | 64,274,476 | 60,615,127 |
Deferred tax asset, net | 9,503,034 | 13,069,755 |
Prepaid reinsurance premiums | 143,969,376 | 135,379,777 |
Property and equipment, net | 4,673,096 | 4,690,704 |
Accounts receivable—securities | 170,470 | 261,829 |
Federal income taxes receivable | 16,959,666 | 19,032,604 |
Goodwill | 5,625,354 | 5,625,354 |
Other intangible assets | 958,010 | 958,010 |
Other | 2,590,138 | 2,419,566 |
Total assets | 1,901,282,612 | 1,832,078,267 |
Liabilities | ||
Unpaid losses and loss expenses | 845,282,435 | 814,665,224 |
Unearned premiums | 535,999,385 | 506,528,606 |
Accrued expenses | 25,180,277 | 25,442,146 |
Reinsurance balances payable | 2,545,976 | 3,882,193 |
Borrowings under lines of credit | 35,000,000 | 60,000,000 |
Cash dividends declared to stockholders | 3,948,484 | |
Subordinated debentures | 5,000,000 | 5,000,000 |
Accounts payable—securities | 5,222,537 | 1,003,810 |
Due to affiliate | 6,010,121 | 10,874,540 |
Other | 3,188,157 | 1,863,363 |
Total liabilities | 1,463,428,888 | 1,433,208,366 |
Stockholders' Equity | ||
Preferred stock, $.01 par value, authorized 2,000,000 shares; none issued | ||
Additional paid-in capital | 264,320,325 | 261,258,423 |
Accumulated other comprehensive loss | (1,837,379) | (14,228,059) |
Retained earnings | 216,280,947 | 192,751,208 |
Treasury stock, at cost | (41,226,357) | (41,226,357) |
Total stockholders' equity | 437,853,724 | 398,869,901 |
Total liabilities and stockholders' equity | 1,901,282,612 | 1,832,078,267 |
Class A Common Stock [Member] | ||
Stockholders' Equity | ||
Common stock value | 259,696 | 258,194 |
Total stockholders' equity | 259,696 | 258,194 |
Class B Common Stock [Member] | ||
Stockholders' Equity | ||
Common stock value | 56,492 | 56,492 |
Total stockholders' equity | $ 56,492 | $ 56,492 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2019 | Dec. 31, 2018 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 2,000,000 | 2,000,000 |
Preferred stock, shares issued | 0 | 0 |
Class A Common Stock [Member] | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 25,969,577 | 25,819,341 |
Common stock, shares outstanding | 22,966,989 | 22,816,753 |
Class B Common Stock [Member] | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 10,000,000 | 10,000,000 |
Common stock, shares issued | 5,649,240 | 5,649,240 |
Common stock, shares outstanding | 5,576,775 | 5,576,775 |
Consolidated Statements of Inco
Consolidated Statements of Income (Loss) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Revenues: | ||||
Net premiums earned | $ 188,763,313 | $ 185,714,110 | $ 376,836,555 | $ 367,478,690 |
Investment income, net of investment expenses | 7,289,652 | 6,342,152 | 14,338,155 | 12,720,521 |
Net investment gains (losses) | 1,566,157 | 1,517,310 | 19,663,270 | 598,971 |
Lease income | 112,155 | 122,403 | 223,254 | 245,996 |
Installment payment fees | 1,057,677 | 1,306,197 | 2,146,594 | 2,654,158 |
Equity in earnings of Donegal Financial Services Corporation | 0 | 787,856 | 295,000 | 1,419,970 |
Total revenues | 198,788,954 | 195,790,028 | 413,502,828 | 385,118,306 |
Expenses: | ||||
Net losses and loss expenses | 131,507,280 | 135,753,645 | 254,617,936 | 292,336,913 |
Amortization of deferred policy acquisition costs | 30,925,000 | 30,579,000 | 61,517,000 | 60,244,000 |
Other underwriting expenses | 28,208,336 | 28,492,434 | 58,893,219 | 57,815,072 |
Policyholder dividends | 1,969,490 | 1,213,588 | 4,319,138 | 2,515,771 |
Interest | 303,423 | 566,284 | 868,715 | 1,030,432 |
Other expenses, net | 337,894 | 518,123 | 904,265 | 1,044,335 |
Total expenses | 193,251,423 | 197,123,074 | 381,120,273 | 414,986,523 |
Income (loss) before income tax expense (benefit) | 5,537,531 | (1,333,046) | 32,382,555 | (29,868,217) |
Income tax expense (benefit) | 749,077 | (543,191) | 4,570,937 | (10,900,284) |
Net income (loss) | $ 4,788,454 | $ (789,855) | $ 27,811,618 | $ (18,967,933) |
Class A Common Stock [Member] | ||||
Earnings (loss) per common share: | ||||
Common stock—basic | $ 0.17 | $ (0.03) | $ 1 | $ (0.68) |
Common stock—diluted | 0.17 | (0.03) | 0.99 | (0.68) |
Common stock—basic and diluted | 0.17 | (0.03) | ||
Class B Common Stock [Member] | ||||
Earnings (loss) per common share: | ||||
Common stock—basic | 0.15 | (0.03) | 0.90 | (0.63) |
Common stock—diluted | 0.15 | (0.03) | 0.90 | (0.63) |
Common stock—basic and diluted | $ 0.15 | $ (0.03) | $ 0.90 | $ (0.63) |
Consolidated Statements of In_2
Consolidated Statements of Income (Loss) (Parenthetical) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Net investment gains (losses) | $ 1,566,157 | $ 1,517,310 | $ 19,663,270 | $ 598,971 |
Income tax expense (benefit) | 749,077 | (543,191) | 4,570,937 | (10,900,284) |
Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||
Net investment gains (losses) | 13,150 | 12,247 | 52,414 | 32,316 |
Income tax expense (benefit) | $ 2,762 | $ 2,572 | $ 11,007 | $ 6,786 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 4,788,454 | $ (789,855) | $ 27,811,618 | $ (18,967,933) |
Unrealized gain (loss) on securities: | ||||
Unrealized holding gain (loss) during the period, net of income tax expense (benefit) | 5,932,595 | (2,451,371) | 12,432,087 | (9,089,561) |
Reclassification adjustment for gains included in net income (loss), net of income tax benefit (expense) | (10,388) | (9,675) | (41,407) | 25,530 |
Other comprehensive income (loss) | 5,922,207 | (2,461,046) | 12,390,680 | (9,064,031) |
Comprehensive income (loss) | $ 10,710,661 | $ (3,250,901) | $ 40,202,298 | $ (28,031,964) |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Unrealized holding gain (loss) during the period, net of income tax expense (benefit) during the period | $ 1,593,511 | $ 651,633 | $ 3,304,733 | $ 2,416,212 |
Income tax benefit on reclassification adjustment for gains | $ 2,762 | $ 2,572 | $ 11,007 | $ 6,786 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) | Total | Additional Paid-In Capital [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Retained Earnings [Member] | Treasury Stock [Member] | Class A Common Stock [Member] | Class B Common Stock [Member] |
Beginning balance at Dec. 31, 2017 | $ 448,696,104 | $ 255,401,558 | $ (2,684,275) | $ 236,893,041 | $ (41,226,357) | $ 255,645 | $ 56,492 |
Beginning balance, shares at Dec. 31, 2017 | 25,564,481 | 5,649,240 | |||||
Issuance of common stock (stock compensation plans) | 422,610 | 422,318 | $ 292 | ||||
Issuance of common stock (stock compensation plans), shares | 29,162 | ||||||
Share-based compensation | 1,024,650 | 1,024,328 | $ 322 | ||||
Share-based compensation, shares | 32,176 | ||||||
Net income (loss) | (18,178,078) | (18,178,078) | |||||
Cash dividends declared | (8,587) | (8,587) | |||||
Grant of stock options | 187,444 | (187,444) | |||||
Reclassification of equity unrealized gains | (4,918,655) | 4,918,655 | |||||
Other comprehensive income (loss) | (6,602,985) | (6,602,985) | |||||
Ending balance at Mar. 31, 2018 | 425,353,714 | 257,035,648 | (14,205,915) | 223,437,587 | (41,226,357) | $ 256,259 | $ 56,492 |
Ending balance, shares at Mar. 31, 2018 | 25,625,819 | 5,649,240 | |||||
Beginning balance at Dec. 31, 2017 | 448,696,104 | 255,401,558 | (2,684,275) | 236,893,041 | (41,226,357) | $ 255,645 | $ 56,492 |
Beginning balance, shares at Dec. 31, 2017 | 25,564,481 | 5,649,240 | |||||
Net income (loss) | (18,967,933) | ||||||
Other comprehensive income (loss) | (9,064,031) | ||||||
Ending balance at Jun. 30, 2018 | 419,670,039 | 258,665,915 | (16,666,961) | 218,584,057 | (41,226,357) | $ 256,893 | $ 56,492 |
Ending balance, shares at Jun. 30, 2018 | 25,689,249 | 5,649,240 | |||||
Beginning balance at Mar. 31, 2018 | 425,353,714 | 257,035,648 | (14,205,915) | 223,437,587 | (41,226,357) | $ 256,259 | $ 56,492 |
Beginning balance, shares at Mar. 31, 2018 | 25,625,819 | 5,649,240 | |||||
Issuance of common stock (stock compensation plans) | 960,773 | 960,139 | $ 634 | ||||
Issuance of common stock (stock compensation plans), shares | 63,430 | ||||||
Share-based compensation | 536,472 | 536,472 | |||||
Net income (loss) | (789,855) | (789,855) | |||||
Cash dividends declared | (3,930,019) | (3,930,019) | |||||
Grant of stock options | 133,656 | (133,656) | |||||
Other comprehensive income (loss) | (2,461,046) | (2,461,046) | |||||
Ending balance at Jun. 30, 2018 | 419,670,039 | 258,665,915 | (16,666,961) | 218,584,057 | (41,226,357) | $ 256,893 | $ 56,492 |
Ending balance, shares at Jun. 30, 2018 | 25,689,249 | 5,649,240 | |||||
Beginning balance at Dec. 31, 2018 | 398,869,901 | 261,258,423 | (14,228,059) | 192,751,208 | (41,226,357) | $ 258,194 | $ 56,492 |
Beginning balance, shares at Dec. 31, 2018 | 25,819,341 | 5,649,240 | |||||
Issuance of common stock (stock compensation plans) | 404,055 | 403,722 | $ 333 | ||||
Issuance of common stock (stock compensation plans), shares | 33,334 | ||||||
Share-based compensation | 442,920 | 442,920 | |||||
Net income (loss) | 23,023,164 | 23,023,164 | |||||
Cash dividends declared | (4,752) | (4,752) | |||||
Grant of stock options | 144,226 | (144,226) | |||||
Other comprehensive income (loss) | 6,468,473 | 6,468,473 | |||||
Ending balance at Mar. 31, 2019 | 429,203,761 | 262,249,291 | (7,759,586) | 215,625,394 | (41,226,357) | $ 258,527 | $ 56,492 |
Ending balance, shares at Mar. 31, 2019 | 25,852,675 | 5,649,240 | |||||
Beginning balance at Dec. 31, 2018 | 398,869,901 | 261,258,423 | (14,228,059) | 192,751,208 | (41,226,357) | $ 258,194 | $ 56,492 |
Beginning balance, shares at Dec. 31, 2018 | 25,819,341 | 5,649,240 | |||||
Net income (loss) | 27,811,618 | ||||||
Other comprehensive income (loss) | 12,390,680 | ||||||
Ending balance at Jun. 30, 2019 | 437,853,724 | 264,320,325 | (1,837,379) | 216,280,947 | (41,226,357) | $ 259,696 | $ 56,492 |
Ending balance, shares at Jun. 30, 2019 | 25,969,577 | 5,649,240 | |||||
Beginning balance at Mar. 31, 2019 | 429,203,761 | 262,249,291 | (7,759,586) | 215,625,394 | (41,226,357) | $ 258,527 | $ 56,492 |
Beginning balance, shares at Mar. 31, 2019 | 25,852,675 | 5,649,240 | |||||
Issuance of common stock (stock compensation plans) | 752,914 | 752,354 | $ 560 | ||||
Issuance of common stock (stock compensation plans), shares | 55,933 | ||||||
Share-based compensation | 1,218,804 | 1,218,195 | $ 609 | ||||
Share-based compensation, shares | 60,969 | ||||||
Net income (loss) | 4,788,454 | 4,788,454 | |||||
Cash dividends declared | (4,032,416) | (4,032,416) | |||||
Grant of stock options | 100,485 | (100,485) | |||||
Other comprehensive income (loss) | 5,922,207 | 5,922,207 | |||||
Ending balance at Jun. 30, 2019 | $ 437,853,724 | $ 264,320,325 | $ (1,837,379) | $ 216,280,947 | $ (41,226,357) | $ 259,696 | $ 56,492 |
Ending balance, shares at Jun. 30, 2019 | 25,969,577 | 5,649,240 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Cash Flows from Operating Activities: | ||
Net income (loss) | $ 27,811,618 | $ (18,967,933) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation, amortization and other non-cash items | 3,013,417 | 3,093,372 |
Net investment gains | (19,663,270) | (598,971) |
Equity in earnings of Donegal Financial Services Corporation | (295,000) | (1,419,970) |
Changes in assets and liabilities: | ||
Losses and loss expenses | 30,617,211 | 70,958,418 |
Unearned premiums | 29,470,779 | 32,420,723 |
Premiums receivable | (19,555,531) | (8,814,392) |
Deferred acquisition costs | (3,659,349) | (4,319,511) |
Deferred income taxes | 272,997 | 27,263 |
Reinsurance receivable | (14,260,221) | (13,302,328) |
Prepaid reinsurance premiums | (8,589,599) | (8,693,950) |
Accrued investment income | (737,007) | (232,947) |
Due to affiliate | (4,864,419) | (3,826,317) |
Reinsurance balances payable | (1,336,217) | 2,273,786 |
Current income taxes | 2,072,938 | (8,686,822) |
Accrued expenses | (261,869) | (3,913,386) |
Other, net | 1,154,221 | 135,249 |
Net adjustments | (6,620,919) | 55,100,217 |
Net cash provided by operating activities | 21,190,699 | 36,132,284 |
Cash Flows from Investing Activities: | ||
Purchases of fixed maturities, held to maturity | (38,094,242) | (26,231,784) |
Purchases of fixed maturities, available for sale | (88,098,117) | (49,700,116) |
Purchases of equity securities, available for sale | (12,356,474) | (4,344,974) |
Maturity of fixed maturities: | ||
Held to maturity | 6,656,093 | 7,143,696 |
Available for sale | 41,569,635 | 56,797,178 |
Sales of fixed maturities, available for sale | 20,548,077 | 208,817 |
Sales of equity securities, available for sale | 37,071,301 | 1,819,212 |
Net purchases of property and equipment | (129,877) | (107,440) |
Net purchases of short-term investments | (7,704,029) | (736,775) |
Net cash used in investing activities | (6,614,860) | (15,152,186) |
Cash Flows from Financing Activities: | ||
Cash dividends paid | (7,985,652) | (7,780,426) |
Issuance of common stock | 1,760,919 | 1,618,991 |
Borrowings under line of credit | 1,000,000 | |
Payments on lines of credit | (25,000,000) | |
Net cash used in financing activities | (31,224,733) | (5,161,435) |
Net (decrease) increase in cash | (16,648,894) | 15,818,663 |
Cash at beginning of period | 52,594,461 | 37,833,435 |
Cash at end of period | 35,945,567 | 53,652,098 |
Cash paid during period—Interest | 321,585 | $ 557,521 |
Net cash paid during period—Taxes | 2,200,000 | |
Donegal Financial Services Corporation [Member] | ||
Maturity of fixed maturities: | ||
Sale of investment | 19,863,949 | |
Dividends received | $ 14,058,824 |
Organization
Organization | 6 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | 1 - Organization Donegal Mutual Insurance Company (“Donegal Mutual”) organized us as an insurance holding company on August 26, 1986 At June 30, 2019, we had three At June 30, 2019, Donegal Mutual held approximately 43 % of our outstanding Class A common stock and approximately % of our outstanding Class B common stock. This ownership provides Donegal Mutual with approximately 72 % of the total voting power of our common stock. Our insurance subsidiaries and Donegal Mutual have interrelated operations due to a pooling agreement and other intercompany agreements and transactions. While each company maintains its separate corporate existence, Donegal Mutual and our insurance subsidiaries conduct business together as the Donegal Insurance Group. As such, Donegal Mutual and our insurance subsidiaries share the same business philosophy, the same management, the same employees and the same facilities and offer the same types of insurance products. Atlantic States, our largest subsidiary, participates in a pooling agreement with Donegal Mutual. Under the pooling agreement, the two companies pool their insurance business and each company receives an allocated percentage of the pooled business. Atlantic States has an 80% share of the results of the pooled business, and Donegal Mutual has a 20% share of the results of the pooled business. The same executive management and underwriting personnel administer products, classes of business underwritten, pricing practices and underwriting standards of Donegal Mutual and our insurance subsidiaries. In addition, as the Donegal Insurance Group, Donegal Mutual and our insurance subsidiaries share a combined business plan to achieve market penetration and underwriting profitability objectives. The products our insurance subsidiaries and Donegal Mutual market are generally complementary, thereby allowing the Donegal Insurance Group to offer a broader range of products to a given market and to expand the Donegal Insurance Group’s ability to service entire personal lines or commercial lines accounts. Distinctions within the products Donegal Mutual and our insurance subsidiaries offer relate generally to specific risk profiles targeted within similar classes of business, such as preferred tier products versus standard tier products, but we do not allocate all of the standard risk gradients to any specific company within the Donegal Insurance Group. Therefore, the underwriting profitability of the business the individual companies write directly will vary. However, because the risk characteristics of all business Donegal Mutual and Atlantic States write directly are homogenized within the underwriting pool, Donegal Mutual and Atlantic States share the underwriting results in proportion to their respective participation in the underwriting pool. In July 2018, we consolidated the branch office operations of Peninsula into our home office operations to achieve economies of scale and enhance service levels for policyholders of Peninsula. We recorded a restructuring charge for employee termination costs associated with the Peninsula consolidation of approximately $1.9 million and paid approximately $1.5 million of these costs in 2018. We paid approximately $130,000 of these costs in the first six months of 2019 and had an accrual of approximately $260,000 remaining at June 30, 2019. We entered into a definitive purchase agreement for the sale of Peninsula’s branch office in 2018. The sale was completed in January 2019, and we received net proceeds of $1.2 million. We recorded an impairment charge of $1.1 million in other expenses in 2018 related to this real estate transaction and included the $1.2 million fair value of the real estate we held for sale in other assets at December 31, 2018. We and Donegal Mutual sold DFSC to Northwest Bancshares, Inc. (“Northwest”) on March 8, 2019, resulting in proceeds valued at approximately $85.8 million in a combination of cash and Northwest common stock. Immediately prior to the closing of the merger, DFSC paid a dividend of approximately $29.2 million to us and Donegal Mutual. As the owner of 48.2% of DFSC’s common stock, we received a dividend payment from DFSC of approximately $14.1 million and consideration from Northwest that included a combination of cash in the amount of $20.5 million and Northwest common stock with a fair value at the closing date of $20.9 million. We recorded a gain of $12.7 million from the sale of DFSC in our results of operations for the first quarter of 2019. We sold the Northwest common stock that we received as part of the consideration during the first quarter of 2019. This transaction represented the culmination of a banking strategy that began with the formation of DFSC in 2000. On July 18, 2013, our board of directors authorized a share repurchase program pursuant to which we have the authority to purchase up to 500,000 shares of our Class A common stock at prices prevailing from time to time in the open market subject to the provisions of applicable rules of the Securities and Exchange Commission (“SEC”) and in privately negotiated transactions. We did not purchase any shares of our Class A common stock under this program during the six months ended June 30, 2019 or 2018. We have purchased a total of 57,658 shares of our Class A common stock under this program from its inception through June 30, 2019. |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | 2 - Basis of Presentation Our financial information for the interim periods included in this Form 10-Q Report is unaudited; however, our financial information we include in this Form 10-Q Report reflects all adjustments, consisting only of normal recurring adjustments that, in the opinion of our management, are necessary for a fair presentation of our financial position, results of operations and cash flows for those interim periods. Our results of operations for the six months ended June 30, 2019 are not necessarily indicative of the results of operations we expect for the year ending December 31, 2019. We recommend you read the interim financial statements we include in this Form 10-Q Report in conjunction with the financial statements and the notes to our financial statements contained in our Annual Report on Form 10-K for the year ended December 31, 2018. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 3 - Earnings Per Share We have two classes of common stock, which we refer to as our Class A common stock and our Class B common stock. Our certificate of incorporation provides that whenever our board of directors declares a dividend on our Class B common stock, our board of directors shall simultaneously declare a dividend on our Class A common stock that is payable to the holders of our Class A common stock at the same time and as of the same record date at a rate that is at least 10% greater than the rate at which our board of directors declared a dividend on our Class B common stock. Accordingly, we use the two-class method to compute our earnings per common share. The two-class method is an earnings allocation formula that determines earnings per share separately for each class of common stock based on dividends we have declared and an allocation of our remaining undistributed earnings using a participation percentage that reflects the dividend rights of each class. The table below presents for the periods indicated a reconciliation of the numerators and denominators we used to compute basic and diluted net income per share for our Class A common stock and our Class B common stock: Three Months Ended June 30, 2019 2018 Class A Class B Class A Class B (in thousands, except per share data) Basic earnings (loss) per share: Numerator: Allocation of net income (loss) $ 3,941 $ 848 $ (625 ) $ (165 ) Denominator: Weighted-average shares outstanding 22,933 5,577 22,686 5,577 Basic earnings (loss) per share $ 0.17 $ 0.15 $ (0.03 ) $ (0.03 ) Diluted earnings (loss) per share: Numerator: Allocation of net income (loss) $ 3,941 $ 848 $ (625 ) $ (165 ) Denominator: Number of shares used in basic computation 22,933 5,577 22,686 5,577 Weighted-average shares effect of dilutive securities: Director and employee stock options 200 — — — Number of shares used in diluted computation 23,133 5,577 22,686 5,577 Diluted earnings (loss) per share $ 0.17 $ 0.15 $ (0.03 ) $ (0.03 ) Six Months Ended June 30, 2019 2018 Class A Class B Class A Class B (in thousands, except per share data) Basic earnings (loss) per share: Numerator: Allocation of net income (loss) $ 22,790 $ 5,022 $ (15,476 ) $ (3,492 ) Denominator: Weighted-average shares outstanding 22,892 5,577 22,651 5,577 Basic earnings (loss) per share $ 1.00 $ 0.90 $ (0.68 ) $ (0.63 ) Diluted earnings (loss) per share: Numerator: Allocation of net income (loss) $ 22,790 $ 5,022 $ (15,476 ) $ (3,492 ) Denominator: Number of shares used in basic computation 22,892 5,577 22,651 5,577 Weighted-average shares effect of dilutive securities: Director and employee stock options 135 — — — Number of shares used in diluted computation 23,027 5,577 22,651 5,577 Diluted earnings (loss) per share $ 0.99 $ 0.90 $ (0.68 ) $ (0.63 ) We did not include outstanding options to purchase 5,531,561 shares and 5,417,725 shares of Class A common stock in our computation of diluted earnings per share for the three months and six months ended June 30, 2019 because the exercise price of the options exceeded the average market price of our Class A common stock during the period. We did not include any effect of dilutive securities in the computation of diluted earnings per share for the three and six months ended June 30, 2018 because we sustained a net loss for these periods. |
Reinsurance
Reinsurance | 6 Months Ended |
Jun. 30, 2019 | |
Insurance [Abstract] | |
Reinsurance | 4 - Reinsurance Atlantic States and Donegal Mutual have participated in a pooling agreement since 1986 under which they pool substantially all of their direct premiums written, and Atlantic States and Donegal Mutual then share the underwriting results of the pool in accordance with the terms of the pooling agreement. Atlantic States has an 80% share of the results of the pool, and Donegal Mutual has a 20% share of the results of the pool. Our insurance subsidiaries and Donegal Mutual implemented a combined third-party reinsurance program effective January 1, 2019. The coverage and parameters of the fully consolidated program are common to all of our insurance subsidiaries and Donegal Mutual. Our insurance subsidiaries use several different reinsurers, all of which have an A.M. Best rating of A- (Excellent) or better or, with respect to foreign reinsurers, have a financial condition that, in the opinion of our management, is equivalent to a company with at least an A- rating from A.M. Best. The following information describes the external reinsurance our insurance subsidiaries have in place for 2019: • excess of loss reinsurance, under which the losses of Donegal Mutual and our insurance subsidiaries are automatically reinsured, through a series of contracts, over a set retention of $1.0 million for property losses and a retention of $2.0 million for casualty losses (including workers’ compensation losses); and • catastrophe reinsurance, under which Donegal Mutual and our insurance subsidiaries recover, through a series of reinsurance agreements, 100% of an accumulation of many losses resulting from a single event, including natural disasters, over a set retention of $10.0 million and after exceeding an annual aggregate deductible of $1.2 million up to aggregate losses of $190.0 million per occurrence. Our insurance subsidiaries and Donegal Mutual also purchase facultative reinsurance to cover exposures in excess of the covered limits of their third-party reinsurance agreements. In addition to the pooling agreement and third-party reinsurance, our insurance subsidiaries have a catastrophe reinsurance agreement with Donegal Mutual, under which each of our insurance subsidiaries recovers 100% of an accumulation of multiple losses resulting from a single event, including natural disasters, over a set retention of $2.0 million up to aggregate losses of $8.0 million per occurrence. The agreement also provides additional coverage for an accumulation of losses from a single event including a combination of our insurance subsidiaries over a combined retention of $5.0 million. |
Investments
Investments | 6 Months Ended |
Jun. 30, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | 5 - Investments The amortized cost and estimated fair values of our fixed maturities at June 30, 2019 were as follows: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value (in thousands) Held to Maturity U.S. Treasury securities and obligations of U.S. government corporations and agencies $ 87,839 $ 1,725 $ 66 $ 89,498 Obligations of states and political subdivisions 171,174 13,282 15 184,441 Corporate securities 139,037 5,513 438 144,112 Mortgage-backed securities 36,408 547 39 36,916 Totals $ 434,458 $ 21,067 $ 558 $ 454,967 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value (in thousands) Available for Sale U.S. Treasury securities and obligations of U.S. government corporations and agencies $ 32,829 $ 85 $ 45 $ 32,869 Obligations of states and political subdivisions 60,059 1,856 8 61,907 Corporate securities 150,056 2,998 244 152,810 Mortgage-backed securities 321,051 2,338 1,225 322,164 Totals $ 563,995 $ 7,277 $ 1,522 $ 569,750 At June 30, 2019, our holdings of obligations of states and political subdivisions included general obligation bonds with an aggregate fair value of $ 162.9 million and an amortized cost of $ 153.7 million. Our holdings at June 30, 2019 also included special revenue bonds with an aggregate fair value of $ 83.4 million and an amortized cost of $ 77.5 million. With respect to both categories of those bonds at June 30, 2019, we held no securities of any issuer that comprised more than 10% of our holdings of either bond category. Education bonds and water and sewer utility bonds represented 46 % and 32 %, respectively, of our total investments in special revenue bonds based on the carrying values of these investments at June 30, 2019. Many of the issuers of the special revenue bonds we held at June 30, 2019 have the authority to impose ad valorem taxes. In that respect, many of the special revenue bonds we held at June 30, 2019 are similar to general obligation bonds. The amortized cost and estimated fair values of our fixed maturities at December 31, 2018 were as follows: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value (in thousands) Held to Maturity U.S. Treasury securities and obligations of U.S. government corporations and agencies $ 76,222 $ 175 $ 1,087 $ 75,310 Obligations of states and political subdivisions 159,292 8,237 704 166,825 Corporate securities 127,010 396 4,391 123,015 Mortgage-backed securities 40,274 64 450 39,888 Totals $ 402,798 $ 8,872 $ 6,632 $ 405,038 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value (in thousands) Available for Sale U.S. Treasury securities and obligations of U.S. government corporations and agencies $ 45,188 $ 25 $ 1,003 $ 44,210 Obligations of states and political subdivisions 73,761 1,762 307 75,216 Corporate securities 140,689 203 3,059 137,833 Mortgage-backed securities 275,475 149 6,325 269,299 Totals $ 535,113 $ 2,139 $ 10,694 $ 526,558 At December 31, 2018, our holdings of obligations of states and political subdivisions included general obligation bonds with an aggregate fair value of $157.7 million and an amortized cost of $152.2 million. Our holdings also included special revenue bonds with an aggregate fair value of $84.3 million and an amortized cost of $80.9 million. With respect to both categories of bonds, we held no securities of any issuer that comprised more than 10% of that category at December 31, 2018. Education bonds and water and sewer utility bonds represented 49% and 29%, respectively, of our total investments in special revenue bonds based on their carrying values at December 31, 2018. Many of the issuers of the special revenue bonds we held at December 31, 2018 have the authority to impose ad valorem taxes. In that respect, many of the special revenue bonds we held are similar to general obligation bonds. We made reclassifications from available for sale to held to maturity of certain fixed maturities at fair value on November 30, 2013. We segregated within accumulated other comprehensive loss the net unrealized losses of $15.1 million arising prior to the November 30, 2013 reclassifications. We are amortizing this balance over the remaining life of the related securities as an adjustment to yield in a manner consistent with the accretion of discount on the same fixed maturities. We recorded amortization of $ 568,486 and $575,107 in other comprehensive income (loss) during the six months ended June 30, 2019 and 2018, respectively. At June 30, 2019 and December 31, 2018, net unrealized losses of $ 8.1 million and $8.6 million, respectively, remained within accumulated other comprehensive loss. We show below the amortized cost and estimated fair value of our fixed maturities at June 30, 2019 by contractual maturity. Expected maturities may differ from contractual maturities because issuers of the securities may have the right to call or prepay obligations with or without call or prepayment penalties. Amortized Cost Estimated Fair Value (in thousands) Held to maturity Due in one year or less $ 23,975 $ 24,103 Due after one year through five years 72,869 75,460 Due after five years through ten years 166,809 174,481 Due after ten years 134,397 144,007 Mortgage-backed securities 36,408 36,916 Total held to maturity $ 434,458 $ 454,967 Available for sale Due in one year or less $ 30,622 $ 30,840 Due after one year through five years 91,216 93,077 Due after five years through ten years 106,807 108,931 Due after ten years 14,299 14,738 Mortgage-backed securities 321,051 322,164 Total available for sale $ 563,995 $ 569,750 The cost and estimated fair values of our equity securities at June 30, 2019 were as follows: Cost Gross Gains Gross Losses Estimated Fair Value (in thousands) Equity securities $ 37,483 $ 9,646 $ 362 $ 46,767 The cost and estimated fair values of our equity securities at December 31, 2018 were as follows: Cost Gross Gains Gross Losses Estimated Fair Value (in thousands) Equity securities $ 40,943 $ 4,818 $ 2,094 $ 43,667 Gross investment gains and losses before applicable income taxes for the three and six months ended June 30, 2019 and 2018 were as follows: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 (in thousands) (in thousands) Gross investment gains: Fixed maturities $ 14 $ 12 $ 372 $ 12 Equity securities 1,586 2,125 7,572 3,270 Investment in affiliate — — 12,662 — 1,600 2,137 20,606 3,282 Gross investment losses: Fixed maturities 2 1 320 45 Equity securities 32 619 623 2,638 34 620 943 2,683 Net investment gains $ 1,566 $ 1,517 $ 19,663 $ 599 We recognized $6.2 million of gains and $39,898 of losses on equity securities we held at June 30, 2019 in net investment gains for the six months ended June 30, 2019. We recognized $2.1 million of gains and $2.6 million of losses on equity securities held at June 30, 2018 in net investment gains for the six months ended June 30, 2018. We held fixed maturities with unrealized losses representing declines that we considered temporary at June 30, 2019 as follows: Less Than 12 Months More Than 12 Months Fair Value Unrealized Losses Fair Value Unrealized Losses (in thousands) U.S. Treasury securities and obligations of U.S. government corporations and agencies $ — $ — $ 25,618 $ 111 Obligations of states and political subdivisions 3,740 15 4,864 8 Corporate securities 6,538 58 40,055 624 Mortgage-backed securities 3,693 5 130,148 1,259 Totals $ 13,971 $ 78 $ 200,685 $ 2,002 We held fixed maturities with unrealized losses representing declines that we considered temporary at December 31, 2018 as follows: Less Than 12 Months More Than 12 Months Fair Value Unrealized Losses Fair Value Unrealized Losses (in thousands) U.S. Treasury securities and obligations of U.S. government corporations and agencies $ 26,342 $ 166 $ 54,900 $ 1,924 Obligations of states and political subdivisions 28,322 477 21,560 534 Corporate securities 149,270 4,483 59,397 2,968 Mortgage-backed securities 82,594 913 181,379 5,862 Totals $ 286,528 $ 6,039 $ 317,236 $ 11,288 We make estimates concerning the valuation of our investments and the recognition of other-than-temporary declines in the value of our investments. For equity securities, we measure investments at fair value, and we recognize changes in fair value in our results of operations. With respect to a debt security that is in an unrealized loss position, we first assess if we intend to sell the debt security. If we determine we intend to sell the debt security, we recognize the impairment loss in our results of operations. If we do not intend to sell the debt security, we determine whether it is more likely than not that we will be required to sell the debt security prior to recovery. If we determine it is more likely than not that we will be required to sell the debt security prior to recovery, we recognize the impairment loss in our results of operations. If we determine it is more likely than not that we will not be required to sell the debt security prior to recovery, we then evaluate whether a credit loss has occurred with respect to that security. We determine whether a credit loss has occurred by comparing the amortized cost of the debt security to the present value of the cash flows we expect to collect. If we expect a cash flow shortfall, we consider that a credit loss has occurred. If we determine that a credit loss has occurred, we consider the impairment to be other than temporary. We then recognize the amount of the impairment loss related to the credit loss in our results of operations, and we recognize the remaining portion of the impairment loss in our other comprehensive income, net of applicable taxes. In addition, we may write down securities in an unrealized loss position based on a number of other factors, including when the fair value of an investment is significantly below its cost, when the financial condition of the issuer of a security has deteriorated, the occurrence of industry, issuer or geographic events that have negatively impacted the value of a security and rating agency downgrades. We held 163 debt securities that were in an unrealized loss position at June 30, 2019. Based upon our analysis of general market conditions and underlying factors impacting these debt securities, we considered these declines in value to be temporary. We amortize premiums and discounts on debt securities over the life of the security as an adjustment to yield using the effective interest method. We compute realized investment gains and losses using the specific identification method. We amortize premiums and discounts on mortgage-backed debt securities using anticipated prepayments. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | 6 - Segment Information We evaluate the performance of our personal lines and commercial lines segments based upon the underwriting results of our insurance subsidiaries using statutory accounting principles (“SAP”) that various state insurance departments prescribe or permit. Our management uses SAP to measure the performance of our insurance subsidiaries instead of United States generally accepted accounting principles (“GAAP”). SAP financial measures are considered non-GAAP financial measures under applicable SEC rules because they include or exclude certain items that the most comparable GAAP financial measures do not ordinarily include or exclude. Financial data by segment for the three and six months ended June 30, 2019 and 2018 is as follows: Three Months Ended June 30, 2019 2018 (in thousands) Revenues: Premiums earned: Commercial lines $ 94,788 $ 84,552 Personal lines 93,975 101,162 Premiums earned 188,763 185,714 Net investment income 7,290 6,342 Investment gains 1,566 1,517 Equity in earnings of DFSC — 788 Other 1,170 1,429 Total revenues $ 198,789 $ 195,790 Income (loss) before income tax expense (benefit): Underwriting income (loss): Commercial lines $ 4,113 $ 150 Personal lines (9,238 ) (12,881 ) SAP underwriting loss (5,125 ) (12,731 ) GAAP adjustments 1,278 2,406 GAAP underwriting loss (3,847 ) (10,325 ) Net investment income 7,290 6,342 Investment gains 1,566 1,517 Equity in earnings of DFSC — 788 Other 529 345 Income (loss) before income tax expense (benefit) $ 5,538 $ (1,333 ) Six Months Ended June 30, 2019 2018 (in thousands) Revenues: Premiums earned: Commercial lines $ 186,269 $ 166,778 Personal lines 190,568 200,701 Premiums earned 376,837 367,479 Net investment income 14,338 12,721 Investment gains 19,663 599 Equity in earnings of DFSC 295 1,420 Other 2,370 2,899 Total revenues $ 413,503 $ 385,118 Income (loss) before income tax expense (benefit): Underwriting income (loss): Commercial lines $ 2,425 $ (20,060 ) Personal lines (6,765 ) (30,148 ) SAP underwriting loss (4,340 ) (50,208 ) GAAP adjustments 1,829 4,775 GAAP underwriting loss (2,511 ) (45,433 ) Net investment income 14,338 12,721 Investment gains 19,663 599 Equity in earnings of DFSC 295 1,420 Other 598 825 Income (loss) before income tax expense (benefit) $ 32,383 $ (29,868 ) |
Borrowings
Borrowings | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Borrowings | 7 - Borrowings Lines of Credit In March 2019, we terminated our previous credit agreement with Manufacturers and Traders Trust Company (“M&T”) and entered into a new credit agreement with M&T. The new credit agreement relates to a $30.0 million unsecured revolving line of credit. The line of credit expires in July 2020. At June 30, 2019, we had no outstanding borrowings from M&T and had the ability to borrow up to $30.0 million at interest rates equal to M&T’s current prime rate or the then-current LIBOR rate plus 2.25%. We pay a fee of 0.15% per annum on the loan commitment amount regardless of usage. The credit agreement requires our compliance with certain covenants. These covenants include minimum levels of our net worth, leverage ratio, statutory surplus and the A.M. Best ratings of our insurance subsidiaries. In addition, Atlantic States has guaranteed our payment obligations under the new credit agreement. We complied with all requirements of the credit agreement during the six months ended June 30, 2019. Atlantic States is a member of the FHLB of Pittsburgh. Through its membership, Atlantic States has the ability to issue debt to the FHLB of Pittsburgh in exchange for cash advances. Atlantic States had $35.0 million in outstanding advances at June 30, 2019. The interest rate on the advances was 2.76% at June 30, 2019. The table below presents the amount of FHLB of Pittsburgh stock Atlantic States purchased, collateral pledged and assets related to Atlantic States’ membership in the FHLB of Pittsburgh at June 30, 2019. FHLB of Pittsburgh stock purchased and owned $ 1,639,200 Collateral pledged, at par (carrying value $ 38,680,757 38,891,639 Borrowing capacity currently available 2,497,850 Subordinated Debentures Donegal Mutual holds a $5.0 million surplus note that MICO issued to increase MICO’s statutory surplus. The surplus note carries an interest rate of 5.00%, and any repayment of principal or payment of interest on the surplus note requires prior approval of the Michigan Department of Insurance and Financial Services. |
Share-Based Compensation
Share-Based Compensation | 6 Months Ended |
Jun. 30, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation | 8 - Share–Based Compensation We measure all share-based payments to employees, including grants of stock options, and use a fair-value-based method for the recording of related compensation expense in our results of operations. In determining the expense we record for stock options granted to directors and employees of our subsidiaries and affiliates, we estimate the fair value of each option award on the date of grant using the Black-Scholes option pricing model. The significant assumptions we utilize in applying the Black-Scholes option pricing model are the risk-free interest rate, the expected term, the dividend yield and the expected volatility. We charged compensation expense related to our stock compensation plans against income before income taxes of $ 423,623 and $521,689 for the three months ended June 30, 2019 and 2018, respectively, with a corresponding income tax benefit of $ 88,961 and $109,555, respectively. We charged compensation expense related to our stock compensation plans against income before income taxes of $ 866,276 and $1.0 million for the six months ended June 30, 2019 and 2018, respectively, with a corresponding income tax benefit of $ 181,918 and $218,897, respectively. At June 30, 2019, we had $ 1.5 million of unrecognized compensation expense related to nonvested share-based compensation granted under our stock compensation plans that we expect to recognize over a weighted average period of approximately 1.7 years. We received cash from option exercises under all stock compensation plans during the three months ended June 30, 2019 of $795,182. We realized actual tax benefits for the tax deductions related to those option exercises of $15,962. We did not receive any cash from option exercises under all stock compensation plans during the three months ended June 30, 2018. 478,650 $15,962 and $18,803 for the six months ended June 30, 2019 and 2018, respectively. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 9 - Fair Value Measurements We account for financial assets using a framework that establishes a hierarchy that ranks the quality and reliability of the inputs, or assumptions, we use in the determination of fair value, and we classify financial assets and liabilities carried at fair value in one of the following three categories: Level 1 – quoted prices in active markets for identical assets and liabilities; Level 2 – directly or indirectly observable inputs other than Level 1 quoted prices; and Level 3 – unobservable inputs not corroborated by market data. For investments that have quoted market prices in active markets, we use the quoted market price as fair value and include these investments in Level 1 of the fair value hierarchy. We classify publicly-traded equity securities as Level 1. When quoted market prices in active markets are not available, we base fair values on quoted market prices of comparable instruments or price estimates we obtain from independent pricing services and include these investments in Level 2 of the fair value hierarchy. We classify our fixed maturity investments as Level 2. Our fixed maturity investments consist of U.S. Treasury securities and obligations of U.S. government corporations and agencies, obligations of states and political subdivisions, corporate securities and mortgage-backed securities. We present our investments in available-for-sale fixed maturity and equity securities at estimated fair value. The estimated fair value of a security may differ from the amount that could be realized if we sold the security in a forced transaction. In addition, the valuation of fixed maturity investments is more subjective when markets are less liquid, increasing the potential that the estimated fair value does not reflect the price at which an actual transaction would occur. We utilize nationally recognized independent pricing services to estimate fair values or obtain market quotations for substantially all of our fixed maturity and equity investments. These pricing services utilize market quotations for fixed maturity and equity securities that have quoted prices in active markets. For fixed maturity securities that generally do not trade on a daily basis, the pricing services prepare estimates of fair value measurements based predominantly on observable market inputs. The pricing services do not use broker quotes in determining the fair values of our investments. Our investment personnel review the estimates of fair value the pricing services provide to verify that the estimates we obtain from the pricing services are representative of fair values based upon our investment personnel’s general knowledge of the market, their research findings related to unusual fluctuations in value and their comparison of such values to execution prices for similar securities. Our investment personnel regularly monitor the market, current trading ranges for similar securities and the pricing of specific investments. Our investment personnel review all pricing estimates that we receive from the pricing services against their expectations with respect to pricing based on fair market curves, security ratings, interest rates, security types and recent trading activity. Our investment personnel periodically review documentation with respect to the pricing services’ pricing methodology that they obtain to determine if the primary pricing sources, market inputs and pricing frequency for various security types are reasonable. At June 30, 2019, we received two estimates per security from the pricing services, and we priced substantially all of our Level 1 and Level 2 investments using those prices. In our review of the estimates the pricing services provided at June 30, 2019, we did not identify any material discrepancies, and we did not make any adjustments to the estimates the pricing services provided. We present our cash and short-term investments at estimated fair value. We classify these items as Level 1. The carrying values we report in our balance sheet for premium receivables and reinsurance receivables and payables for premiums and paid losses and loss expenses approximate their fair values. The carrying amounts we report in our balance sheets for our subordinated debentures and borrowings under lines of credit approximate their fair values. We classify these items as Level 3. We evaluate our assets and liabilities to determine the appropriate level at which to classify them for each reporting period. The following table presents our fair value measurements for our investments in available-for-sale fixed maturity and equity securities at June 30, 2019: Fair Value Measurements Using Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (in thousands) U.S. Treasury securities and obligations of U.S. government corporations and agencies $ 32,869 $ — $ 32,869 $ — Obligations of states and political subdivisions 61,907 — 61,907 — Corporate securities 152,810 — 152,810 — Mortgage-backed securities 322,164 — 322,164 — Equity securities 46,767 44,414 2,353 — Total investments in the fair value hierarchy $ 616,517 $ 44,414 $ 572,103 $ — The following table presents our fair value measurements for our investments in available-for-sale fixed maturity and equity securities at December 31, 2018: Fair Value Measurements Using Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (in thousands) U.S. Treasury securities and obligations of U.S. government corporations and agencies $ 44,210 $ — $ 44,210 $ — Obligations of states and political subdivisions 75,216 — 75,216 — Corporate securities 137,833 — 137,833 — Mortgage-backed securities 269,299 — 269,299 — Equity securities 30,675 28,351 2,324 — Total investments in the fair value hierarchy 557,233 28,351 528,882 — Investment measured at net asset value 12,992 — — — Totals $ 570,225 $ 28,351 $ 528,882 $ — |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 10 - Income Taxes At June 30, 2019 and December 31, 2018, respectively, we had no material unrecognized tax benefits or accrued interest and penalties. Tax years 2015 through 2018 remained open for examination at June 30, 2019. We provide a valuation allowance when we believe it is more likely than not that we will not realize some portion of our tax assets. We established a valuation allowance of $264,467 related to a portion of the net operating loss carryforward of Le Mars at January 1, 2004 and a valuation allowance of $8.1 million for our net state operating loss carryforward. We have determined that we are not required to establish a valuation allowance for our other deferred tax assets of $ 25.5 million and $32.4 million at June 30, 2019 and December 31, 2018, respectively, because it is more likely than not that we will realize these deferred tax assets through reversals of existing temporary differences, future taxable income and the implementation of tax planning strategies. Our deferred tax assets include a net operating loss carryforward of $1.2 million related to Le Mars, which will begin to expire in 2020 if not previously utilized. This carryforward is subject to an annual limitation of approximately $376,000. |
Liability for Losses and Loss E
Liability for Losses and Loss Expenses | 6 Months Ended |
Jun. 30, 2019 | |
Text Block [Abstract] | |
Liability for Losses and Loss Expenses | 11 - Liability for Losses and Loss Expenses The establishment of an appropriate liability for losses and loss expenses is an inherently uncertain process, and we can provide no assurance that our insurance subsidiaries’ ultimate liability for losses and loss expenses will not exceed their loss and loss expense reserves and have an adverse effect on our results of operations and financial condition. Furthermore, we cannot predict the timing, frequency and extent of adjustments to our insurance subsidiaries’ estimated future liabilities, because the historical conditions and events that serve as a basis for our insurance subsidiaries’ estimates of ultimate claim costs may change. As is the case for substantially all property and casualty insurance companies, our insurance subsidiaries have found it necessary in the past to increase their estimated future liabilities for losses and loss expenses in certain periods, and, in other periods, their estimated future liabilities for losses and loss expenses have exceeded their actual liabilities for losses and loss expenses. Changes in our insurance subsidiaries’ estimate of their liability for losses and loss expenses generally reflect actual payments and their evaluation of information received subsequent to the prior reporting period. We summarize activity in our insurance subsidiaries’ liability for losses and loss expenses as follows: Six Months Ended June 30, 2019 2018 (in thousands) Balance at January 1 $ 814,665 $ 676,672 Less reinsurance recoverable (339,267 ) (293,271 ) Net balance at January 1 475,398 383,401 Incurred related to: Current year 261,517 266,093 Prior years (6,899 ) 26,244 Total incurred 254,618 292,337 Paid related to: Current year 118,045 127,392 Prior years 120,605 108,521 Total paid 238,650 235,913 Net balance at end of period 491,366 439,825 Plus reinsurance recoverable 353,916 307,805 Balance at end of period $ 845,282 $ 747,630 Our insurance subsidiaries recognized a (decrease) increase in their liability for losses and loss expenses of prior years of ($6.9 million) and $26.2 million for the six months ended June 30, 2019 and 2018, respectively. Our insurance subsidiaries made no significant changes in their reserving philosophy or claims management personnel, and they have made no significant offsetting changes in estimates that increased or decreased their loss and loss expense reserves in those years. The 2019 development represented Short-duration contracts are contracts for which our insurance subsidiaries receive premiums that they recognize as revenue over the period of the contract in proportion to the amount of insurance protection our insurance subsidiaries provide. Our insurance subsidiaries consider the policies they issue to be short-duration contracts. We consider the material lines of business of our insurance subsidiaries to be personal automobile, homeowners, commercial automobile, commercial multi-peril and workers’ compensation. Our insurance subsidiaries determine incurred but not reported (“IBNR”) reserves by subtracting the cumulative loss and loss expense amounts our insurance subsidiaries have paid and the case reserves our insurance subsidiaries have established at the balance sheet date from their actuaries’ estimate of the ultimate cost of losses and loss expenses. Accordingly, the IBNR reserves of our insurance subsidiaries include their actuaries’ projections of the cost of unreported claims as well as their actuaries’ projected development of case reserves on known claims and reopened claims. Our insurance subsidiaries’ methodology for estimating IBNR reserves has been in place for many years, and their actuaries made no significant changes to that methodology during the six months ended June 30, 2019. The actuaries for our insurance subsidiaries generally prepare an initial estimate for ultimate losses and loss expenses for the current accident year by multiplying earned premium by an expected loss ratio for each line of business our insurance subsidiaries write. Expected loss ratios represent the actuaries’ expectation of losses at the time our insurance subsidiaries price and write their policies and before the emergence of any actual claims experience. The actuaries determine an expected loss ratio by analyzing historical experience and adjusting for loss cost trends, loss frequency and severity trends, premium rate level changes, reported and paid loss emergence patterns and other known or observed factors. The actuaries use a variety of actuarial methods to estimate the ultimate cost of losses and loss expenses. These methods include paid loss development, incurred loss development and the Bornhuetter-Ferguson method. The actuaries base their selection of a point estimate on a judgmental weighting of the estimates each of these methods produce. The actuaries consider loss frequency and severity trends when they develop expected loss ratios and point estimates. Loss frequency is a measure of the number of claims per unit of insured exposure, and loss severity is a measure of the average size of claims. Factors that affect loss frequency include changes in weather patterns and economic activity. Factors that affect loss severity include changes in policy limits, reinsurance retentions, inflation rates and judicial interpretations. Our insurance subsidiaries create a claim file when they receive notice of an actual demand for payment, an event that may lead to a demand for payment or when they otherwise determine that a demand for payment could potentially lead to a future demand for payment on another coverage under the same policy or another policy they have issued. In recent years, our insurance subsidiaries have noted an increase in the period of time between the occurrence of a casualty loss event and the date at which they receive notice of a liability claim. Changes in the length of time between the loss occurrence date and the claim reporting date affect the actuaries’ ability to predict loss frequency accurately and the amount of IBNR reserves our insurance subsidiaries require. Our insurance subsidiaries generally create a claim file for a policy at the claimant level by type of coverage and generally recognize one count for each claim event. In certain lines of business where it is common for multiple parties to claim damages arising from a single claim event, our insurance subsidiaries recognize one count for each claimant involved in the event. Atlantic States recognizes one count for each claim event, or claimant involved in a multiple-party claim event, related to losses Atlantic States assumes through its participation in its pooling agreement with Donegal Mutual. Our insurance subsidiaries accumulate the claim counts and report them by line of business. |
Impact of New Accounting Standa
Impact of New Accounting Standards | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Changes and Error Corrections [Abstract] | |
Impact of New Accounting Standards | 12 - Impact of New Accounting Standards In February 2016, the FASB issued guidance that requires lessees to recognize leases, including operating leases, on the lessee’s balance sheet, unless a lease is considered a short-term lease. This guidance also requires entities to make new judgments to identify leases. The guidance is effective for annual and interim reporting periods beginning after December 15, 2018 and permits early adoption. Our adoption of this guidance on January 1, 2019 did not have a significant impact on our financial position, results of operations or cash flows. In June 2016, the FASB issued guidance that amends previous guidance on the impairment of financial instruments by adding an impairment model that requires an entity to recognize expected credit losses as an allowance rather than impairments as credit losses are incurred. The intent of this guidance is to reduce complexity and result in a more timely recognition of expected credit losses. The guidance is effective for annual and interim reporting periods beginning after December 15, 2019. We are in the process of evaluating the impact of the adoption of this guidance on our financial position, results of operations and cash flows. In January 2017, the FASB issued guidance that simplifies the measurement of goodwill by modifying the goodwill impairment test previous guidance required. The guidance requires an entity to perform its annual or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount and recognize impairment for the amount by which the reporting unit’s carrying amount exceeds its fair value. The guidance is effective for annual and interim reporting periods beginning after December 15, 2019 and permits early adoption. We do not expect the adoption of this guidance to have a significant impact on our financial position, results of operations or cash flows. In August 2018, the FASB issued guidance that modifies disclosure requirements related to fair value measurements. The guidance removes the requirements to disclose the amounts of, and reasons for, transfers between Level 1 and Level 2 of the fair value hierarchy. The guidance is effective for annual and interim reporting periods beginning after December 15, 2019 and permits early adoption. The adoption of this guidance on January 1, 2019 did not have a significant impact on our financial position, results of operations or cash flows. |
Impact of New Accounting Stan_2
Impact of New Accounting Standards (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Changes and Error Corrections [Abstract] | |
Impact of New Accounting Standards | In February 2016, the FASB issued guidance that requires lessees to recognize leases, including operating leases, on the lessee’s balance sheet, unless a lease is considered a short-term lease. This guidance also requires entities to make new judgments to identify leases. The guidance is effective for annual and interim reporting periods beginning after December 15, 2018 and permits early adoption. Our adoption of this guidance on January 1, 2019 did not have a significant impact on our financial position, results of operations or cash flows. In June 2016, the FASB issued guidance that amends previous guidance on the impairment of financial instruments by adding an impairment model that requires an entity to recognize expected credit losses as an allowance rather than impairments as credit losses are incurred. The intent of this guidance is to reduce complexity and result in a more timely recognition of expected credit losses. The guidance is effective for annual and interim reporting periods beginning after December 15, 2019. We are in the process of evaluating the impact of the adoption of this guidance on our financial position, results of operations and cash flows. In January 2017, the FASB issued guidance that simplifies the measurement of goodwill by modifying the goodwill impairment test previous guidance required. The guidance requires an entity to perform its annual or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount and recognize impairment for the amount by which the reporting unit’s carrying amount exceeds its fair value. The guidance is effective for annual and interim reporting periods beginning after December 15, 2019 and permits early adoption. We do not expect the adoption of this guidance to have a significant impact on our financial position, results of operations or cash flows. In August 2018, the FASB issued guidance that modifies disclosure requirements related to fair value measurements. The guidance removes the requirements to disclose the amounts of, and reasons for, transfers between Level 1 and Level 2 of the fair value hierarchy. The guidance is effective for annual and interim reporting periods beginning after December 15, 2019 and permits early adoption. The adoption of this guidance on January 1, 2019 did not have a significant impact on our financial position, results of operations or cash flows. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Summary of Reconciliation of Numerators and Denominators Used in Basic and Diluted Per Share Computations | The table below presents for the periods indicated a reconciliation of the numerators and denominators we used to compute basic and diluted net income per share for our Class A common stock and our Class B common stock: Three Months Ended June 30, 2019 2018 Class A Class B Class A Class B (in thousands, except per share data) Basic earnings (loss) per share: Numerator: Allocation of net income (loss) $ 3,941 $ 848 $ (625 ) $ (165 ) Denominator: Weighted-average shares outstanding 22,933 5,577 22,686 5,577 Basic earnings (loss) per share $ 0.17 $ 0.15 $ (0.03 ) $ (0.03 ) Diluted earnings (loss) per share: Numerator: Allocation of net income (loss) $ 3,941 $ 848 $ (625 ) $ (165 ) Denominator: Number of shares used in basic computation 22,933 5,577 22,686 5,577 Weighted-average shares effect of dilutive securities: Director and employee stock options 200 — — — Number of shares used in diluted computation 23,133 5,577 22,686 5,577 Diluted earnings (loss) per share $ 0.17 $ 0.15 $ (0.03 ) $ (0.03 ) Six Months Ended June 30, 2019 2018 Class A Class B Class A Class B (in thousands, except per share data) Basic earnings (loss) per share: Numerator: Allocation of net income (loss) $ 22,790 $ 5,022 $ (15,476 ) $ (3,492 ) Denominator: Weighted-average shares outstanding 22,892 5,577 22,651 5,577 Basic earnings (loss) per share $ 1.00 $ 0.90 $ (0.68 ) $ (0.63 ) Diluted earnings (loss) per share: Numerator: Allocation of net income (loss) $ 22,790 $ 5,022 $ (15,476 ) $ (3,492 ) Denominator: Number of shares used in basic computation 22,892 5,577 22,651 5,577 Weighted-average shares effect of dilutive securities: Director and employee stock options 135 — — — Number of shares used in diluted computation 23,027 5,577 22,651 5,577 Diluted earnings (loss) per share $ 0.99 $ 0.90 $ (0.68 ) $ (0.63 ) |
Investments (Tables)
Investments (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of Amortized Cost and Estimated Fair Values of Fixed Maturities | The amortized cost and estimated fair values of our fixed maturities at June 30, 2019 were as follows: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value (in thousands) Held to Maturity U.S. Treasury securities and obligations of U.S. government corporations and agencies $ 87,839 $ 1,725 $ 66 $ 89,498 Obligations of states and political subdivisions 171,174 13,282 15 184,441 Corporate securities 139,037 5,513 438 144,112 Mortgage-backed securities 36,408 547 39 36,916 Totals $ 434,458 $ 21,067 $ 558 $ 454,967 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value (in thousands) Available for Sale U.S. Treasury securities and obligations of U.S. government corporations and agencies $ 32,829 $ 85 $ 45 $ 32,869 Obligations of states and political subdivisions 60,059 1,856 8 61,907 Corporate securities 150,056 2,998 244 152,810 Mortgage-backed securities 321,051 2,338 1,225 322,164 Totals $ 563,995 $ 7,277 $ 1,522 $ 569,750 The amortized cost and estimated fair values of our fixed maturities at December 31, 2018 were as follows: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value (in thousands) Held to Maturity U.S. Treasury securities and obligations of U.S. government corporations and agencies $ 76,222 $ 175 $ 1,087 $ 75,310 Obligations of states and political subdivisions 159,292 8,237 704 166,825 Corporate securities 127,010 396 4,391 123,015 Mortgage-backed securities 40,274 64 450 39,888 Totals $ 402,798 $ 8,872 $ 6,632 $ 405,038 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value (in thousands) Available for Sale U.S. Treasury securities and obligations of U.S. government corporations and agencies $ 45,188 $ 25 $ 1,003 $ 44,210 Obligations of states and political subdivisions 73,761 1,762 307 75,216 Corporate securities 140,689 203 3,059 137,833 Mortgage-backed securities 275,475 149 6,325 269,299 Totals $ 535,113 $ 2,139 $ 10,694 $ 526,558 |
Summary of Amortized Cost and Estimated Fair Value of Fixed Maturities by Contractual Maturity | Expected maturities may differ from contractual maturities because issuers of the securities may have the right to call or prepay obligations with or without call or prepayment penalties. Amortized Cost Estimated Fair Value (in thousands) Held to maturity Due in one year or less $ 23,975 $ 24,103 Due after one year through five years 72,869 75,460 Due after five years through ten years 166,809 174,481 Due after ten years 134,397 144,007 Mortgage-backed securities 36,408 36,916 Total held to maturity $ 434,458 $ 454,967 Available for sale Due in one year or less $ 30,622 $ 30,840 Due after one year through five years 91,216 93,077 Due after five years through ten years 106,807 108,931 Due after ten years 14,299 14,738 Mortgage-backed securities 321,051 322,164 Total available for sale $ 563,995 $ 569,750 |
Summary of Cost and Estimated Fair Values of Equity Securities | The cost and estimated fair values of our equity securities at June 30, 2019 were as follows: Cost Gross Gains Gross Losses Estimated Fair Value (in thousands) Equity securities $ 37,483 $ 9,646 $ 362 $ 46,767 The cost and estimated fair values of our equity securities at December 31, 2018 were as follows: Cost Gross Gains Gross Losses Estimated Fair Value (in thousands) Equity securities $ 40,943 $ 4,818 $ 2,094 $ 43,667 |
Summary of Gross Investment Gains and Losses before Applicable Income Taxes | Gross investment gains and losses before applicable income taxes for the three and six months ended June 30, 2019 and 2018 were as follows: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 (in thousands) (in thousands) Gross investment gains: Fixed maturities $ 14 $ 12 $ 372 $ 12 Equity securities 1,586 2,125 7,572 3,270 Investment in affiliate — — 12,662 — 1,600 2,137 20,606 3,282 Gross investment losses: Fixed maturities 2 1 320 45 Equity securities 32 619 623 2,638 34 620 943 2,683 Net investment gains $ 1,566 $ 1,517 $ 19,663 $ 599 |
Summary of Fixed Maturities with Unrealized Losses | We held fixed maturities with unrealized losses representing declines that we considered temporary at June 30, 2019 as follows: Less Than 12 Months More Than 12 Months Fair Value Unrealized Losses Fair Value Unrealized Losses (in thousands) U.S. Treasury securities and obligations of U.S. government corporations and agencies $ — $ — $ 25,618 $ 111 Obligations of states and political subdivisions 3,740 15 4,864 8 Corporate securities 6,538 58 40,055 624 Mortgage-backed securities 3,693 5 130,148 1,259 Totals $ 13,971 $ 78 $ 200,685 $ 2,002 We held fixed maturities with unrealized losses representing declines that we considered temporary at December 31, 2018 as follows: Less Than 12 Months More Than 12 Months Fair Value Unrealized Losses Fair Value Unrealized Losses (in thousands) U.S. Treasury securities and obligations of U.S. government corporations and agencies $ 26,342 $ 166 $ 54,900 $ 1,924 Obligations of states and political subdivisions 28,322 477 21,560 534 Corporate securities 149,270 4,483 59,397 2,968 Mortgage-backed securities 82,594 913 181,379 5,862 Totals $ 286,528 $ 6,039 $ 317,236 $ 11,288 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Summary of Financial Data by Segment | Financial data by segment for the three and six months ended June 30, 2019 and 2018 is as follows: Three Months Ended June 30, 2019 2018 (in thousands) Revenues: Premiums earned: Commercial lines $ 94,788 $ 84,552 Personal lines 93,975 101,162 Premiums earned 188,763 185,714 Net investment income 7,290 6,342 Investment gains 1,566 1,517 Equity in earnings of DFSC — 788 Other 1,170 1,429 Total revenues $ 198,789 $ 195,790 Income (loss) before income tax expense (benefit): Underwriting income (loss): Commercial lines $ 4,113 $ 150 Personal lines (9,238 ) (12,881 ) SAP underwriting loss (5,125 ) (12,731 ) GAAP adjustments 1,278 2,406 GAAP underwriting loss (3,847 ) (10,325 ) Net investment income 7,290 6,342 Investment gains 1,566 1,517 Equity in earnings of DFSC — 788 Other 529 345 Income (loss) before income tax expense (benefit) $ 5,538 $ (1,333 ) Six Months Ended June 30, 2019 2018 (in thousands) Revenues: Premiums earned: Commercial lines $ 186,269 $ 166,778 Personal lines 190,568 200,701 Premiums earned 376,837 367,479 Net investment income 14,338 12,721 Investment gains 19,663 599 Equity in earnings of DFSC 295 1,420 Other 2,370 2,899 Total revenues $ 413,503 $ 385,118 Income (loss) before income tax expense (benefit): Underwriting income (loss): Commercial lines $ 2,425 $ (20,060 ) Personal lines (6,765 ) (30,148 ) SAP underwriting loss (4,340 ) (50,208 ) GAAP adjustments 1,829 4,775 GAAP underwriting loss (2,511 ) (45,433 ) Net investment income 14,338 12,721 Investment gains 19,663 599 Equity in earnings of DFSC 295 1,420 Other 598 825 Income (loss) before income tax expense (benefit) $ 32,383 $ (29,868 ) |
Borrowings (Tables)
Borrowings (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
FHLB of Pittsburgh [Member] | |
Amount of FHLB of Indianapolis/Pittsburgh Stock Purchased, Collateral Pledged and Assets Related to MICO's/Atlantic States Agreement | The table below presents the amount of FHLB of Pittsburgh stock Atlantic States purchased, collateral pledged and assets related to Atlantic States’ membership in the FHLB of Pittsburgh at June 30, 2019. FHLB of Pittsburgh stock purchased and owned $ 1,639,200 Collateral pledged, at par (carrying value $ 38,680,757 38,891,639 Borrowing capacity currently available 2,497,850 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements for Investments in Available-for-Sale Fixed Maturity and Equity Securities | The following table presents our fair value measurements for our investments in available-for-sale fixed maturity and equity securities at June 30, 2019: Fair Value Measurements Using Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (in thousands) U.S. Treasury securities and obligations of U.S. government corporations and agencies $ 32,869 $ — $ 32,869 $ — Obligations of states and political subdivisions 61,907 — 61,907 — Corporate securities 152,810 — 152,810 — Mortgage-backed securities 322,164 — 322,164 — Equity securities 46,767 44,414 2,353 — Total investments in the fair value hierarchy $ 616,517 $ 44,414 $ 572,103 $ — The following table presents our fair value measurements for our investments in available-for-sale fixed maturity and equity securities at December 31, 2018: Fair Value Measurements Using Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (in thousands) U.S. Treasury securities and obligations of U.S. government corporations and agencies $ 44,210 $ — $ 44,210 $ — Obligations of states and political subdivisions 75,216 — 75,216 — Corporate securities 137,833 — 137,833 — Mortgage-backed securities 269,299 — 269,299 — Equity securities 30,675 28,351 2,324 — Total investments in the fair value hierarchy 557,233 28,351 528,882 — Investment measured at net asset value 12,992 — — — Totals $ 570,225 $ 28,351 $ 528,882 $ — |
Liability for Losses and Loss_2
Liability for Losses and Loss Expenses (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Text Block [Abstract] | |
Summary of Insurance Subsidiaries' Liability for Losses and Loss Expenses | We summarize activity in our insurance subsidiaries’ liability for losses and loss expenses as follows: Six Months Ended June 30, 2019 2018 (in thousands) Balance at January 1 $ 814,665 $ 676,672 Less reinsurance recoverable (339,267 ) (293,271 ) Net balance at January 1 475,398 383,401 Incurred related to: Current year 261,517 266,093 Prior years (6,899 ) 26,244 Total incurred 254,618 292,337 Paid related to: Current year 118,045 127,392 Prior years 120,605 108,521 Total paid 238,650 235,913 Net balance at end of period 491,366 439,825 Plus reinsurance recoverable 353,916 307,805 Balance at end of period $ 845,282 $ 747,630 |
Organization - Additional Infor
Organization - Additional Information (Detail) | Jun. 30, 2019Segment | Mar. 08, 2019USD ($) | Jan. 31, 2019USD ($) | Jun. 30, 2019USD ($) | Dec. 31, 2018USD ($) | Jun. 30, 2019shares | Jul. 18, 2013shares |
Business Acquisition [Line Items] | |||||||
Operations commenced date | Aug. 26, 1986 | ||||||
Stock ownership percentage owned by third party | 51.80% | ||||||
Number of operating segments | Segment | 3 | ||||||
Voting power percentage of outstanding common stock | 72.00% | ||||||
Restructuring charge for employee termination costs | $ 1,900,000 | ||||||
Restructuring charges paid for employee termination costs | 130,000 | $ 1,500,000 | |||||
Accrual of restructuring charge | $ 260,000 | ||||||
Atlantic States [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Percentage of share in results of pooled business subsidiary | 80.00% | ||||||
Donegal Mutual [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Percentage of share in results of pooled business owned by third party | 20.00% | ||||||
DFSC and North West [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Consideration from sale of business | $ 20,500,000 | ||||||
Consideration from sale of business fair value at closing date | 20,900,000 | ||||||
DFSC and North West [Member] | Donegal Mutual Insurance Company [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Consideration from sale of business | 85,800,000 | ||||||
Proceeds from dividend | $ 29,200,000 | ||||||
Peninsula [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Expected proceeds from sale of real estate | $ 1,200,000 | ||||||
Impairment charge related to real estate transaction | 1,100,000 | ||||||
Fair value of real asset held for sale | $ 1,200,000 | ||||||
Donegal Financial Services Corporation [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Outstanding stock ownership percentage | 48.20% | 48.20% | 48.20% | ||||
Gain (Loss) on Sale of Equity Investments | $ 12,700,000 | ||||||
Donegal Financial Services Corporation [Member] | DFSC and North West [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Outstanding stock ownership percentage | 48.20% | ||||||
Dividend payment to be received | $ 14,100,000 | ||||||
Class A Common Stock [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Stock ownership percentage held by major shareholder | 43.00% | ||||||
Class A Common Stock [Member] | Stock Repurchase Program Two [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Authority to purchase shares | shares | 500,000 | ||||||
Common stock shares purchased | shares | 57,658 | ||||||
Class B Common Stock [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Stock ownership percentage held by major shareholder | 84.00% |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - shares | 3 Months Ended | 6 Months Ended |
Jun. 30, 2019 | Jun. 30, 2019 | |
Earnings Per Share [Abstract] | ||
Minimum percentage of class A common stock declared dividend excess over class B dividend | 10.00% | |
Options excluded from diluted earnings per share | 5,531,561 | 5,417,725 |
Earnings Per Share - Summary of
Earnings Per Share - Summary of Reconciliation of Numerators and Denominators Used in Basic and Diluted Per Share Computations (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Class A Common Stock [Member] | ||||
Numerator: | ||||
Allocation of net income (loss) | $ 3,941 | $ (625) | $ 22,790 | $ (15,476) |
Denominator: | ||||
Weighted-average shares outstanding | 22,933 | 22,686 | 22,892 | 22,651 |
Basic earnings (loss) per share | $ 0.17 | $ (0.03) | $ 0.99 | $ (0.68) |
Numerator: | ||||
Allocation of net income (loss) | $ 3,941 | $ (625) | $ 22,790 | $ (15,476) |
Denominator: | ||||
Number of shares used in basic computation | 22,933 | 22,686 | 22,892 | 22,651 |
Weighted-average shares effect of dilutive securities: | ||||
Director and employee stock options | 200 | 135 | ||
Number of shares used in diluted computation | 23,133 | 22,686 | 23,027 | 22,651 |
Diluted earnings (loss) per share | $ 0.17 | $ (0.03) | $ 1 | $ (0.68) |
Class B Common Stock [Member] | ||||
Numerator: | ||||
Allocation of net income (loss) | $ 848 | $ (165) | $ 5,022 | $ (3,492) |
Denominator: | ||||
Weighted-average shares outstanding | 5,577 | 5,577 | 5,577 | 5,577 |
Basic earnings (loss) per share | $ 0.15 | $ (0.03) | $ 0.90 | $ (0.63) |
Numerator: | ||||
Allocation of net income (loss) | $ 848 | $ (165) | $ 5,022 | $ (3,492) |
Denominator: | ||||
Number of shares used in basic computation | 5,577 | 5,577 | 5,577 | 5,577 |
Weighted-average shares effect of dilutive securities: | ||||
Number of shares used in diluted computation | 5,577 | 5,577 | 5,577 | 5,577 |
Diluted earnings (loss) per share | $ 0.15 | $ (0.03) | $ 0.90 | $ (0.63) |
Reinsurance - Additional Inform
Reinsurance - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Ceded Credit Risk [Line Items] | |
Loss reinsurance, set retention amount for property losses | $ 1,000,000 |
Loss reinsurance, set retention amount for casualty losses | $ 2,000,000 |
Third Party Reinsurance [Member] | |
Ceded Credit Risk [Line Items] | |
Percentage of accumulation of losses | 100.00% |
Catastrophe reinsurance, set retention amount | $ 10,000,000 |
Catastrophe reinsurance, deductible amount | 1,200,000 |
Maximum amount of loss coverage under reinsurance agreement of property catastrophe | $ 190,000,000 |
Atlantic States [Member] | |
Ceded Credit Risk [Line Items] | |
Percentage of share in results of pooled business subsidiary | 80.00% |
Donegal Mutual [Member] | |
Ceded Credit Risk [Line Items] | |
Percentage of share in results of pooled business owned by third party | 20.00% |
Percentage of accumulation of losses | 100.00% |
Catastrophe reinsurance, set retention amount | $ 2,000,000 |
Maximum amount of loss coverage under reinsurance agreement of property catastrophe | 8,000,000 |
Additional coverage amount | $ 5,000,000 |
Investments - Summary of Amorti
Investments - Summary of Amortized Cost and Estimated Fair Values of Fixed Maturities (Detail) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Schedule of Equity Method Investments [Line Items] | ||
Total held to maturity, Amortized Cost | $ 434,458,088 | $ 402,798,518 |
Held to Maturity, Gross Unrealized Gains | 21,067,000 | 8,872,000 |
Held to Maturity, Gross Unrealized Losses | 558,000 | 6,632,000 |
Total held to maturity, Estimated Fair Value | 454,967,000 | 405,038,000 |
Available for Sale, Amortized Cost | 563,995,000 | 535,113,000 |
Available for Sale, Gross Unrealized Gains | 7,277,000 | 2,139,000 |
Available for Sale, Gross Unrealized Losses | 1,522,000 | 10,694,000 |
Available for Sale, Estimated Fair Value | 569,750,000 | 526,558,000 |
U.S. Treasury Securities and Obligations of U.S. Government Corporations and Agencies [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Total held to maturity, Amortized Cost | 87,839,000 | 76,222,000 |
Held to Maturity, Gross Unrealized Gains | 1,725,000 | 175,000 |
Held to Maturity, Gross Unrealized Losses | 66,000 | 1,087,000 |
Total held to maturity, Estimated Fair Value | 89,498,000 | 75,310,000 |
Available for Sale, Amortized Cost | 32,829,000 | 45,188,000 |
Available for Sale, Gross Unrealized Gains | 85,000 | 25,000 |
Available for Sale, Gross Unrealized Losses | 45,000 | 1,003,000 |
Available for Sale, Estimated Fair Value | 32,869,000 | 44,210,000 |
Obligations of States and Political Subdivisions [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Total held to maturity, Amortized Cost | 171,174,000 | 159,292,000 |
Held to Maturity, Gross Unrealized Gains | 13,282,000 | 8,237,000 |
Held to Maturity, Gross Unrealized Losses | 15,000 | 704,000 |
Total held to maturity, Estimated Fair Value | 184,441,000 | 166,825,000 |
Available for Sale, Amortized Cost | 60,059,000 | 73,761,000 |
Available for Sale, Gross Unrealized Gains | 1,856,000 | 1,762,000 |
Available for Sale, Gross Unrealized Losses | 8,000 | 307,000 |
Available for Sale, Estimated Fair Value | 61,907,000 | 75,216,000 |
Corporate Securities [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Total held to maturity, Amortized Cost | 139,037,000 | 127,010,000 |
Held to Maturity, Gross Unrealized Gains | 5,513,000 | 396,000 |
Held to Maturity, Gross Unrealized Losses | 438,000 | 4,391,000 |
Total held to maturity, Estimated Fair Value | 144,112,000 | 123,015,000 |
Available for Sale, Amortized Cost | 150,056,000 | 140,689,000 |
Available for Sale, Gross Unrealized Gains | 2,998,000 | 203,000 |
Available for Sale, Gross Unrealized Losses | 244,000 | 3,059,000 |
Available for Sale, Estimated Fair Value | 152,810,000 | 137,833,000 |
Mortgage-Backed Securities [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Total held to maturity, Amortized Cost | 36,408,000 | 40,274,000 |
Held to Maturity, Gross Unrealized Gains | 547,000 | 64,000 |
Held to Maturity, Gross Unrealized Losses | 39,000 | 450,000 |
Total held to maturity, Estimated Fair Value | 36,916,000 | 39,888,000 |
Available for Sale, Amortized Cost | 321,051,000 | 275,475,000 |
Available for Sale, Gross Unrealized Gains | 2,338,000 | 149,000 |
Available for Sale, Gross Unrealized Losses | 1,225,000 | 6,325,000 |
Available for Sale, Estimated Fair Value | $ 322,164,000 | $ 269,299,000 |
Investments - Additional Inform
Investments - Additional Information (Detail) | Nov. 30, 2013USD ($) | Jun. 30, 2019USD ($)Securities | Jun. 30, 2018USD ($) | Dec. 31, 2018USD ($) |
Schedule of Investments [Line Items] | ||||
Net unrealized losses arising prior to reclassification date | $ 15,100,000 | |||
Amortization of unrealized losses recorded in accumulated other comprehensive income (loss) | $ 568,486 | $ 575,107 | ||
Accumulated other comprehensive loss | (1,837,379) | $ (14,228,059) | ||
Gain on equity securities | 6,200,000 | 2,100,000 | ||
Loss on equity securities | 39,898 | $ 2,600,000 | ||
Obligations of States and Political Subdivisions [Member] | ||||
Schedule of Investments [Line Items] | ||||
Aggregate fair value of bond held | 162,900,000 | 157,700,000 | ||
Amortized cost of bond held | 153,700,000 | 152,200,000 | ||
Special Revenue Bonds [Member] | ||||
Schedule of Investments [Line Items] | ||||
Aggregate fair value of bond held | 83,400,000 | 84,300,000 | ||
Amortized cost of bond held | $ 77,500,000 | $ 80,900,000 | ||
Education Bonds [Member] | ||||
Schedule of Investments [Line Items] | ||||
Percentage of investments in special revenue bonds | 46.00% | 49.00% | ||
Water and Sewer Utility Bonds [Member] | ||||
Schedule of Investments [Line Items] | ||||
Percentage of investments in special revenue bonds | 32.00% | 29.00% | ||
Fixed Maturities [Member] | ||||
Schedule of Investments [Line Items] | ||||
Number of fixed maturity securities classified as available for sale | Securities | 163 | |||
Accumulated Net Unrealized Investment Losses [Member] | ||||
Schedule of Investments [Line Items] | ||||
Accumulated other comprehensive loss | $ (8,400,000) | $ (8,600,000) | ||
Minimum [Member] | ||||
Schedule of Investments [Line Items] | ||||
Percentage of which the company held security of any issuer | 10.00% | 10.00% |
Investments - Summary of Amor_2
Investments - Summary of Amortized Cost and Estimated Fair Value of Fixed Maturities by Contractual Maturity (Detail) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Held to maturity | ||
Due in one year or less, Amortized Cost | $ 23,975,000 | |
Due after one year through five years, Amortized Cost | 72,869,000 | |
Due after five years through ten years, Amortized Cost | 166,809,000 | |
Due after ten years, Amortized Cost | 134,397,000 | |
Mortgage-backed securities, Amortized Cost | 36,408,000 | |
Total held to maturity, Amortized Cost | 434,458,088 | $ 402,798,518 |
Available for sale | ||
Due in one year or less, Amortized Cost | 30,622,000 | |
Due after one year through five years, Amortized Cost | 91,216,000 | |
Due after five years through ten years, Amortized Cost | 106,807,000 | |
Due after ten years, Amortized Cost | 14,299,000 | |
Mortgage-backed securities, Amortized Cost | 321,051,000 | |
Total available for sale, Amortized Cost | 563,995,000 | |
Held to maturity | ||
Due in one year or less, Estimated Fair Value | 24,103,000 | |
Due after one year through five years, Estimated Fair Value | 75,460,000 | |
Due after five years through ten years, Estimated Fair Value | 174,481,000 | |
Due after ten years, Estimated Fair Value | 144,007,000 | |
Mortgage-backed securities, Estimated Fair Value | 36,916,000 | |
Total held to maturity, Estimated Fair Value | 454,967,000 | 405,038,000 |
Available for sale | ||
Due in one year or less, Estimated Fair Value | 30,840,000 | |
Due after one year through five years, Estimated Fair Value | 93,077,000 | |
Due after five years through ten years, Estimated Fair Value | 108,931,000 | |
Due after ten years, Estimated Fair Value | 14,738,000 | |
Mortgage-backed securities, Estimated Fair Value | 322,164,000 | |
Total available for sale, Estimated Fair Value | $ 569,749,979 | $ 526,558,304 |
Investments - Summary of Cost a
Investments - Summary of Cost and Estimated Fair Value of Equity Securities (Detail) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | ||
Cost | $ 37,483,000 | $ 40,943,000 |
Gross Gains | 9,646,000 | 4,818,000 |
Gross Losses | 362,000 | 2,094,000 |
Estimated Fair Value | $ 46,767,296 | $ 43,667,009 |
Investments - Summary of Gross
Investments - Summary of Gross Investment Gains and Losses before Applicable Income Taxes (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Gain (Loss) on Securities [Line Items] | ||||
Gross investment gains | $ 1,600,000 | $ 2,137,000 | $ 20,606,000 | $ 3,282,000 |
Gross investment losses | 34,000 | 620,000 | 943,000 | 2,683,000 |
Net investment gains (losses) | 1,566,157 | 1,517,310 | 19,663,270 | 598,971 |
Fixed Maturities [Member] | ||||
Gain (Loss) on Securities [Line Items] | ||||
Gross investment gains | 14,000 | 12,000 | 372,000 | 12,000 |
Gross investment losses | 2,000 | 1,000 | 320,000 | 45,000 |
Investments In Affiliates [Member] | ||||
Gain (Loss) on Securities [Line Items] | ||||
Gross investment gains | 12,662,000 | |||
Equity Securities [Member] | ||||
Gain (Loss) on Securities [Line Items] | ||||
Gross investment gains | 1,586,000 | 2,125,000 | 7,572,000 | 3,270,000 |
Gross investment losses | $ 32,000 | $ 619,000 | $ 623,000 | $ 2,638,000 |
Investments - Summary of Fixed
Investments - Summary of Fixed Maturities with Unrealized Losses (Detail) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Debt Securities, Available-for-sale [Line Items] | ||
Less Than 12 Months, Fair Value | $ 13,971 | $ 286,528 |
Less Than 12 Months, Unrealized Losses | 78 | 6,039 |
More Than 12 Months, Fair Value | 200,685 | 317,236 |
More Than 12 Months, Unrealized Losses | 2,002 | 11,288 |
U.S. Treasury Securities and Obligations of U.S. Government Corporations and Agencies [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less Than 12 Months, Fair Value | 26,342 | |
Less Than 12 Months, Unrealized Losses | 166 | |
More Than 12 Months, Fair Value | 25,618 | 54,900 |
More Than 12 Months, Unrealized Losses | 111 | 1,924 |
Obligations of States and Political Subdivisions [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less Than 12 Months, Fair Value | 3,740 | 28,322 |
Less Than 12 Months, Unrealized Losses | 15 | 477 |
More Than 12 Months, Fair Value | 4,864 | 21,560 |
More Than 12 Months, Unrealized Losses | 8 | 534 |
Corporate Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less Than 12 Months, Fair Value | 6,538 | 149,270 |
Less Than 12 Months, Unrealized Losses | 58 | 4,483 |
More Than 12 Months, Fair Value | 40,055 | 59,397 |
More Than 12 Months, Unrealized Losses | 624 | 2,968 |
Mortgage-Backed Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less Than 12 Months, Fair Value | 3,693 | 82,594 |
Less Than 12 Months, Unrealized Losses | 5 | 913 |
More Than 12 Months, Fair Value | 130,148 | 181,379 |
More Than 12 Months, Unrealized Losses | $ 1,259 | $ 5,862 |
Segment Information - Summary o
Segment Information - Summary of Financial Data by Segment (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Premiums earned: | ||||
Premiums earned | $ 188,763,313 | $ 185,714,110 | $ 376,836,555 | $ 367,478,690 |
Net investment income | 7,289,652 | 6,342,152 | 14,338,155 | 12,720,521 |
Investment gains (losses) | 1,566,157 | 1,517,310 | 19,663,270 | 598,971 |
Equity in earnings of DFSC | 0 | 787,856 | 295,000 | 1,419,970 |
Other | 1,170,000 | 1,429,000 | 2,370,000 | 2,899,000 |
Total revenues | 198,788,954 | 195,790,028 | 413,502,828 | 385,118,306 |
Underwriting income (loss): | ||||
SAP underwriting income (loss) | (5,125,000) | (12,731,000) | (4,340,000) | (50,208,000) |
GAAP adjustments | 1,278,000 | 2,406,000 | 1,829,000 | 4,775,000 |
GAAP underwriting income (loss) | (3,847,000) | (10,325,000) | (2,511,000) | (45,433,000) |
Net investment income | 7,289,652 | 6,342,152 | 14,338,155 | 12,720,521 |
Investment gains (losses) | 1,566,157 | 1,517,310 | 19,663,270 | 598,971 |
Equity in earnings of DFSC | 0 | 787,856 | 295,000 | 1,419,970 |
Other | 529,000 | 345,000 | 598,000 | 825,000 |
Income (loss) before income tax expense (benefit) | 5,537,531 | (1,333,046) | 32,382,555 | (29,868,217) |
Commercial Lines [Member] | ||||
Premiums earned: | ||||
Premiums earned | 94,788,000 | 84,552,000 | 186,269,000 | 166,778,000 |
Underwriting income (loss): | ||||
SAP underwriting income (loss) | 4,113,000 | 150,000 | 2,425,000 | (20,060,000) |
Personal Lines [Member] | ||||
Premiums earned: | ||||
Premiums earned | 93,975,000 | 101,162,000 | 190,568,000 | 200,701,000 |
Underwriting income (loss): | ||||
SAP underwriting income (loss) | $ (9,238,000) | $ (12,881,000) | $ (6,765,000) | $ (30,148,000) |
Borrowings - Additional Informa
Borrowings - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Line of Credit Facility [Line Items] | |
Line of credit expiration month and year | 2020-07 |
Line of credit, interest rate description | interest rates equal to M&T’s current prime rate or the then-current LIBOR rate plus 2.25% |
Percentage commitment fee | 0.15% |
Manufacturers and Traders Trust Company [Member] | |
Line of Credit Facility [Line Items] | |
Line of credit facility remaining borrowing capacity | $ 30,000,000 |
Line of credit covenant description | The credit agreement requires our compliance with certain covenants. These covenants include minimum levels of our net worth, leverage ratio, statutory surplus and the A.M. Best ratings of our insurance subsidiaries. In addition, Atlantic States has guaranteed our payment obligations under the new credit agreement. We complied with all requirements of the credit agreement during the six months ended June 30, 2019. |
FHLB of Pittsburgh [Member] | Atlantic States [Member] | |
Line of Credit Facility [Line Items] | |
Right to request for extension of credit agreement with Manufacturers and Traders Trust Company | $ 2,497,850 |
Outstanding advances | 35,000,000 |
Revolving Credit Facility [Member] | Manufacturers and Traders Trust Company [Member] | |
Line of Credit Facility [Line Items] | |
Right to request for extension of credit agreement with Manufacturers and Traders Trust Company | $ 30,000,000 |
Lines of Credit [Member] | FHLB of Pittsburgh [Member] | Atlantic States [Member] | |
Line of Credit Facility [Line Items] | |
Interest rate on advances | 2.76% |
Subordinated Debentures [Member] | |
Line of Credit Facility [Line Items] | |
Debt instrument stated interest rate | 5.00% |
Subordinated Debentures [Member] | West Bend Mutual Insurance Company [Member] | |
Line of Credit Facility [Line Items] | |
Surplus note | $ 5,000,000 |
Borrowings - Amount of FHLB of
Borrowings - Amount of FHLB of Indianapolis/Pittsburgh Stock Purchased, Collateral Pledged and Assets Related to MICO's/Atlantic States Agreement (Detail) - Atlantic States [Member] - FHLB of Pittsburgh [Member] | Jun. 30, 2019USD ($) |
Amount of FHLB of Indianapolis/Pittsburgh stock purchased, collateral pledged and assets related to MICO's/Atlantic States Agreement | |
FHLB stock purchased and owned | $ 1,639,200 |
Collateral pledged, at par | 38,891,639 |
Borrowing capacity currently available | $ 2,497,850 |
Borrowings - Amount of FHLB o_2
Borrowings - Amount of FHLB of Indianapolis/Pittsburgh Stock Purchased, Collateral Pledged and Assets Related to MICO's/Atlantic States Agreement (Parenthetical) (Detail) | Jun. 30, 2019USD ($) |
FHLB of Pittsburgh [Member] | Atlantic States [Member] | |
Line of Credit Facility [Line Items] | |
Collateral Pledged at carrying value | $ 38,680,757 |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||
Compensation expense in stock compensation plans | $ 423,623 | $ 521,689 | $ 866,276 | $ 1,000,000 |
Income tax benefit of stock compensation plans | 88,961 | 109,555 | 181,918 | 218,897 |
Unrecognized compensation expense related to nonvested share-based compensation granted under the plan | 1,500,000 | $ 1,500,000 | ||
Weighted average period of unrecognized compensation expense | 1 year 8 months 12 days | |||
Cash from option exercises | 795,182 | $ 0 | $ 795,182 | 478,650 |
Tax benefit for tax deductions related to option exercises | $ 15,962 | $ 15,962 | $ 18,803 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value Measurements for Investments in Available-for-Sale Fixed Maturity and Equity Securities (Detail) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities, Fair Value Disclosure | $ 569,750 | $ 526,558 |
U.S. Treasury Securities and Obligations of U.S. Government Corporations and Agencies [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities, Fair Value Disclosure | 32,869 | 44,210 |
Obligations of States and Political Subdivisions [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities, Fair Value Disclosure | 61,907 | 75,216 |
Corporate Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities, Fair Value Disclosure | 152,810 | 137,833 |
Mortgage-Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities, Fair Value Disclosure | 322,164 | 269,299 |
Assets and Liabilities on Recurring Basis [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities, Fair Value Disclosure | 570,225 | |
Assets and Liabilities on Recurring Basis [Member] | Investments Measured at Net Asset Value [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities, Fair Value Disclosure | 12,992 | |
Assets and Liabilities on Recurring Basis [Member] | Total Investments in the Fair Value Hierarchy [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities, Fair Value Disclosure | 616,517 | 557,233 |
Assets and Liabilities on Recurring Basis [Member] | Total Investments in the Fair Value Hierarchy [Member] | U.S. Treasury Securities and Obligations of U.S. Government Corporations and Agencies [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities, Fair Value Disclosure | 32,869 | 44,210 |
Assets and Liabilities on Recurring Basis [Member] | Total Investments in the Fair Value Hierarchy [Member] | Obligations of States and Political Subdivisions [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities, Fair Value Disclosure | 61,907 | 75,216 |
Assets and Liabilities on Recurring Basis [Member] | Total Investments in the Fair Value Hierarchy [Member] | Corporate Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities, Fair Value Disclosure | 152,810 | 137,833 |
Assets and Liabilities on Recurring Basis [Member] | Total Investments in the Fair Value Hierarchy [Member] | Mortgage-Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities, Fair Value Disclosure | 322,164 | 269,299 |
Assets and Liabilities on Recurring Basis [Member] | Total Investments in the Fair Value Hierarchy [Member] | Equity Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities, Fair Value Disclosure | 46,767 | 30,675 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Assets and Liabilities on Recurring Basis [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities, Fair Value Disclosure | 28,351 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Assets and Liabilities on Recurring Basis [Member] | Total Investments in the Fair Value Hierarchy [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities, Fair Value Disclosure | 44,414 | 28,351 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Assets and Liabilities on Recurring Basis [Member] | Total Investments in the Fair Value Hierarchy [Member] | Equity Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities, Fair Value Disclosure | 44,414 | 28,351 |
Significant Other Observable Inputs (Level 2) [Member] | Assets and Liabilities on Recurring Basis [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities, Fair Value Disclosure | 528,882 | |
Significant Other Observable Inputs (Level 2) [Member] | Assets and Liabilities on Recurring Basis [Member] | Total Investments in the Fair Value Hierarchy [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities, Fair Value Disclosure | 572,103 | 528,882 |
Significant Other Observable Inputs (Level 2) [Member] | Assets and Liabilities on Recurring Basis [Member] | Total Investments in the Fair Value Hierarchy [Member] | U.S. Treasury Securities and Obligations of U.S. Government Corporations and Agencies [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities, Fair Value Disclosure | 32,869 | 44,210 |
Significant Other Observable Inputs (Level 2) [Member] | Assets and Liabilities on Recurring Basis [Member] | Total Investments in the Fair Value Hierarchy [Member] | Obligations of States and Political Subdivisions [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities, Fair Value Disclosure | 61,907 | 75,216 |
Significant Other Observable Inputs (Level 2) [Member] | Assets and Liabilities on Recurring Basis [Member] | Total Investments in the Fair Value Hierarchy [Member] | Corporate Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities, Fair Value Disclosure | 152,810 | 137,833 |
Significant Other Observable Inputs (Level 2) [Member] | Assets and Liabilities on Recurring Basis [Member] | Total Investments in the Fair Value Hierarchy [Member] | Mortgage-Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities, Fair Value Disclosure | 322,164 | 269,299 |
Significant Other Observable Inputs (Level 2) [Member] | Assets and Liabilities on Recurring Basis [Member] | Total Investments in the Fair Value Hierarchy [Member] | Equity Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities, Fair Value Disclosure | $ 2,353 | $ 2,324 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 6 Months Ended | |
Jun. 30, 2019 | Dec. 31, 2018 | |
Operating Loss Carryforwards [Line Items] | ||
Other deferred tax assets, net | $ 25,500,000 | $ 32,400,000 |
Parent Company [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Valuation allowance related to the portion of operating loss carryforwards | $ 8,100,000 | |
Earliest Tax Year [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Tax years open for examination | 2015 | |
Latest Tax Year [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Tax years open for examination | 2018 | |
Le Mars [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Valuation allowance related to the portion of operating loss carryforwards | $ 264,467 | |
Operating loss carryforwards | $ 1,200,000 | |
Operating loss carryforwards expiration period | 2020 | |
Operating loss carryforwards annual limitations in amount on use | $ 376,000 |
Liability for Losses and Loss_3
Liability for Losses and Loss Expenses - Summary of Insurance Subsidiaries' Liability for Losses and Loss Expenses (Detail) - USD ($) | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Liability for Claims and Claims Adjustment Expense [Abstract] | ||
Balance at January 1 | $ 814,665,224 | $ 676,672,000 |
Less reinsurance recoverable | (339,267,000) | (293,271,000) |
Net balance at January 1 | 475,398,000 | 383,401,000 |
Incurred related to: | ||
Current year | 261,517,000 | 266,093,000 |
Prior years | (6,899,000) | 26,244,000 |
Total incurred | 254,618,000 | 292,337,000 |
Paid related to: | ||
Current year | 118,045,000 | 127,392,000 |
Prior years | 120,605,000 | 108,521,000 |
Total paid | 238,650,000 | 235,913,000 |
Net balance at end of period | 491,366,000 | 439,825,000 |
Plus reinsurance recoverable | 353,916,000 | 307,805,000 |
Balance at end of period | $ 845,282,435 | $ 747,630,000 |
Liability for Losses and Loss_4
Liability for Losses and Loss Expenses - Additional Information (Detail) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||
Increase (Decrease) in liability for losses and loss expenses of prior years | $ (6,899) | $ 26,244 |
Percentage of 2010 development | 1.50% | 6.80% |
Personal Automobile [Member] | ||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||
Reserve created for commercial automobile | $ 7,400 | |
Commercial Automobile [Member] | ||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||
Reserve created for commercial automobile | $ 18,800 |