Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Mar. 02, 2020 | Jun. 30, 2019 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Entity Interactive Data Current | Yes | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
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 Incorporation, State or Country Code | DE | ||
Entity Address, State or Province | PA | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Public Float | $ 208,752,753 | ||
Class A Common Stock [Member] | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 23,277,039 | ||
Title of 12(b) Security | Class A 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 | Class B Common Stock | ||
Trading Symbol | DGICB | ||
Security Exchange Name | NASDAQ |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Fixed maturities | ||
Held to maturity, at amortized cost (fair value $500,314,344 and $405,038,296) | $ 476,093,782 | $ 402,798,518 |
Available for sale, at fair value (amortized cost $556,839,278 and $535,112,451) | 564,951,803 | 526,558,304 |
Equity securities, at fair value | 55,477,556 | 43,667,009 |
Investment in Donegal Financial Services Corporation | 41,025,975 | |
Short-term investments, at cost, which approximates fair value | 14,030,222 | 16,748,760 |
Total investments | 1,110,553,363 | 1,030,798,566 |
Cash | 49,318,930 | 52,594,461 |
Accrued investment income | 7,066,029 | 6,561,199 |
Premiums receivable | 165,732,949 | 156,702,250 |
Reinsurance receivable | 367,021,468 | 343,369,065 |
Deferred policy acquisition costs | 59,284,859 | 60,615,127 |
Deferred tax asset, net | 8,514,311 | 13,069,755 |
Prepaid reinsurance premiums | 142,475,767 | 135,379,777 |
Property and equipment, net | 4,558,072 | 4,690,704 |
Accounts receivable - securities | 4,961 | 261,829 |
Federal income taxes recoverable | 19,032,604 | |
Goodwill | 5,625,354 | 5,625,354 |
Other intangible assets | 958,010 | 958,010 |
Other | 2,047,058 | 2,419,566 |
Total assets | 1,923,161,131 | 1,832,078,267 |
Liabilities | ||
Losses and loss expenses | 869,673,849 | 814,665,224 |
Unearned premiums | 510,147,485 | 506,528,606 |
Accrued expenses | 28,453,744 | 25,442,146 |
Reinsurance balances payable | 2,116,084 | 3,882,193 |
Borrowings under lines of credit | 35,000,000 | 60,000,000 |
Cash dividends declared to stockholders | 4,075,234 | 3,948,484 |
Subordinated debentures | 5,000,000 | 5,000,000 |
Accounts payable - securities | 1,119 | 1,003,810 |
Income taxes payable | 84,831 | |
Due to affiliate | 10,069,171 | 10,874,540 |
Other | 7,524,095 | 1,863,363 |
Total liabilities | 1,472,145,612 | 1,433,208,366 |
Stockholders' Equity | ||
Preferred stock, $.01 par value, authorized 2,000,000 shares; none issued | ||
Additional paid-in capital | 268,151,601 | 261,258,423 |
Accumulated other comprehensive income (loss) | 504,170 | (14,228,059) |
Retained earnings | 223,267,573 | 192,751,208 |
Treasury stock, at cost | (41,226,357) | (41,226,357) |
Total stockholders' equity | 451,015,519 | 398,869,901 |
Total liabilities and stockholders' equity | 1,923,161,131 | 1,832,078,267 |
Class A Common Stock [Member] | ||
Stockholders' Equity | ||
Common stock value | 262,040 | 258,194 |
Total stockholders' equity | 262,040 | 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) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Held to maturity, fair value | $ 500,314,344 | $ 405,038,296 |
Available for sale, amortized cost | $ 556,839,278 | $ 535,112,451 |
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 | 26,203,935 | 25,819,341 |
Common stock, shares outstanding | 23,201,347 | 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) and Comprehensive Income (Loss) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenues | |||
Net premiums earned (includes affiliated reinsurance of $203,409,131, $198,580,547 and $190,924,704 - see note 3) | $ 756,078,400 | $ 741,290,873 | $ 702,514,755 |
Investment income, net of investment expenses | 29,514,955 | 26,907,656 | 23,527,304 |
Installment payment fees | 4,134,749 | 5,256,721 | 5,157,163 |
Lease income | 443,750 | 480,617 | 500,455 |
Net investment gains (losses) | 21,984,617 | (4,801,509) | 5,705,255 |
Equity in earnings of Donegal Financial Services Corporation | 295,000 | 2,693,962 | 1,621,605 |
Total revenues | 812,451,471 | 771,828,320 | 739,026,537 |
Expenses | |||
Net losses and loss expenses (includes affiliated reinsurance of $103,218,679, $140,113,591 and $114,865,113 - see note 3) | 506,387,664 | 576,458,420 | 487,268,054 |
Amortization of deferred policy acquisition costs | 122,443,000 | 120,964,000 | 115,065,000 |
Other underwriting expenses | 114,561,741 | 113,270,131 | 116,538,431 |
Policyholder dividends | 8,978,406 | 5,353,023 | 5,014,624 |
Interest | 1,579,299 | 2,302,082 | 1,593,437 |
Other, net | 1,420,331 | 1,717,513 | 1,432,529 |
Total expenses | 755,370,441 | 820,065,169 | 726,912,075 |
Income (loss) before income tax expense (benefit) | 57,081,030 | (48,236,849) | 12,114,462 |
Income tax expense (benefit) | 9,929,286 | (15,476,509) | 4,998,362 |
Net income (loss) | 47,151,744 | (32,760,340) | 7,116,100 |
Statements of Comprehensive Income (Loss) | |||
Net income (loss) | 47,151,744 | (32,760,340) | 7,116,100 |
Unrealized gain (loss) on securities: | |||
Unrealized holding gain (loss) arising during the period, net of income tax expense (benefit) of $3,947,082, ($1,865,948) and $1,964,385 | 14,848,545 | (7,019,532) | 3,811,151 |
Reclassification adjustment for (gains) losses included in net income (loss), net of income tax expense (benefit) of $30,920, ($104,841) and $1,939,787 | (116,316) | 394,403 | (3,765,468) |
Other comprehensive income (loss) | 14,732,229 | (6,625,129) | 45,683 |
Comprehensive income (loss) | $ 61,883,973 | $ (39,385,469) | $ 7,161,783 |
Class A Common Stock [Member] | |||
Basic earnings (loss) per common share: | |||
Common stock - Basic | $ 1.68 | $ (1.18) | $ 0.27 |
Diluted earnings (loss) per share: | |||
Common stock - Diluted | 1.67 | (1.18) | 0.26 |
Class B Common Stock [Member] | |||
Basic earnings (loss) per common share: | |||
Common stock - Basic | 1.51 | (1.09) | 0.22 |
Diluted earnings (loss) per share: | |||
Common stock - Diluted | $ 1.51 | $ (1.09) | $ 0.22 |
Consolidated Statements of In_2
Consolidated Statements of Income (Loss) and Comprehensive Income (Loss) (Parenthetical) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Net premiums earned - affiliated reinsurance | $ 203,409,131 | $ 198,580,547 | $ 190,924,704 |
Net realized investment gains (losses) | 21,984,617 | (4,801,509) | 5,705,255 |
Net losses and loss expenses - affiliated reinsurance | 103,218,679 | 140,113,591 | 114,865,113 |
Income tax expense (benefit) | 9,929,286 | (15,476,509) | 4,998,362 |
Income tax expense (benefit) on unrealized holding gain (loss) arising during the period | 3,947,082 | 1,865,948 | 1,964,385 |
Income tax (benefit) expense on reclassification adjustment for losses (gains) | 30,920 | 104,841 | 1,939,787 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | |||
Net realized investment gains (losses) | 147,236 | 499,244 | 5,705,255 |
Income tax expense (benefit) | $ 30,920 | $ 104,841 | $ 1,939,787 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) | Total | Additional Paid-In Capital [Member] | Accumulated Other Comprehensive (Loss) Income [Member] | Retained Earnings [Member] | Treasury Stock [Member] | Class A Common Stock [Member] | Class B Common Stock [Member] |
Beginning balance at Dec. 31, 2016 | $ 438,615,320 | $ 236,851,709 | $ (2,254,271) | $ 244,942,913 | $ (41,226,357) | $ 244,834 | $ 56,492 |
Beginning balance, shares at Dec. 31, 2016 | 24,483,377 | 5,649,240 | |||||
Issuance of common stock (stock compensation plans) | 2,488,333 | 2,486,762 | $ 1,571 | ||||
Issuance of common stock (stock compensation plans), shares | 157,085 | ||||||
Stock-based compensation | 15,471,719 | 15,462,479 | $ 9,240 | ||||
Stock-based compensation, Shares | 924,019 | ||||||
Net income (loss) | 7,116,100 | 7,116,100 | |||||
Cash dividends | (15,041,051) | (15,041,051) | |||||
Grant of stock options | 600,608 | (600,608) | |||||
Reclassification of tax effects | (475,687) | 475,687 | |||||
Other comprehensive income (loss) | 45,683 | 45,683 | |||||
Ending balance at Dec. 31, 2017 | 448,696,104 | 255,401,558 | (2,684,275) | 236,893,041 | (41,226,357) | $ 255,645 | $ 56,492 |
Ending balance, shares at Dec. 31, 2017 | 25,564,481 | 5,649,240 | |||||
Issuance of common stock (stock compensation plans) | 2,470,969 | 2,469,220 | $ 1,749 | ||||
Issuance of common stock (stock compensation plans), shares | 174,899 | ||||||
Stock-based compensation | 2,853,911 | 2,853,111 | $ 800 | ||||
Stock-based compensation, Shares | 79,961 | ||||||
Net income (loss) | (32,760,340) | (32,760,340) | |||||
Cash dividends | (15,765,614) | (15,765,614) | |||||
Grant of stock options | 534,534 | (534,534) | |||||
Reclassification of equity unrealized gains | (4,918,655) | 4,918,655 | |||||
Other comprehensive income (loss) | (6,625,129) | (6,625,129) | |||||
Ending balance at Dec. 31, 2018 | 398,869,901 | 261,258,423 | (14,228,059) | 192,751,208 | (41,226,357) | $ 258,194 | $ 56,492 |
Ending balance, shares at Dec. 31, 2018 | 25,819,341 | 5,649,240 | |||||
Issuance of common stock (stock compensation plans) | 2,227,198 | 2,225,527 | $ 1,671 | ||||
Issuance of common stock (stock compensation plans), shares | 167,096 | ||||||
Stock-based compensation | 4,253,840 | 4,251,665 | $ 2,175 | ||||
Stock-based compensation, Shares | 217,498 | ||||||
Net income (loss) | 47,151,744 | 47,151,744 | |||||
Cash dividends | (16,219,393) | (16,219,393) | |||||
Grant of stock options | 415,986 | (415,986) | |||||
Other comprehensive income (loss) | 14,732,229 | 14,732,229 | |||||
Ending balance at Dec. 31, 2019 | $ 451,015,519 | $ 268,151,601 | $ 504,170 | $ 223,267,573 | $ (41,226,357) | $ 262,040 | $ 56,492 |
Ending balance, shares at Dec. 31, 2019 | 26,203,935 | 5,649,240 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash Flows from Operating Activities: | |||
Net income (loss) | $ 47,151,744 | $ (32,760,340) | $ 7,116,100 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Depreciation, amortization and other non-cash items | 5,573,074 | 6,609,632 | 6,109,869 |
Net investment (gains) losses | (21,984,617) | 4,801,509 | (5,705,255) |
Equity in earnings of Donegal Financial Services Corporation | (295,000) | (2,693,962) | (1,621,605) |
Changes in Assets and Liabilities: | |||
Losses and loss expenses | 55,008,625 | 137,993,497 | 70,007,137 |
Unearned premiums | 3,618,879 | 3,072,065 | 37,401,313 |
Accrued expenses | 3,011,598 | (2,591,630) | (212,915) |
Premiums receivable | (9,030,699) | 3,704,182 | (1,016,765) |
Deferred policy acquisition costs | 1,330,268 | (325,267) | (3,980,664) |
Deferred income taxes | 649,928 | (4,179,805) | 11,889,970 |
Reinsurance receivable | (23,652,403) | (45,026,502) | (35,314,555) |
Accrued investment income | (504,830) | (8,078) | (257,608) |
Amounts due to affiliate | (805,369) | 3,560,172 | 16,519,278 |
Reinsurance balances payable | (1,766,109) | (233,966) | (253,369) |
Prepaid reinsurance premiums | (7,095,990) | (347,136) | (10,777,146) |
Current income taxes | 19,117,435 | (8,097,499) | (9,826,855) |
Other, net | 6,033,243 | 299,262 | (113,482) |
Dividends received from Donegal Financial Services Corporation | 1,036,750 | ||
Net adjustments | 29,208,033 | 96,536,474 | 73,884,098 |
Net cash provided by operating activities | 76,359,777 | 63,776,134 | 81,000,198 |
Purchases of fixed maturities: | |||
Held to maturity | (96,724,391) | (48,969,776) | (51,049,152) |
Available for sale | (165,989,508) | (116,961,667) | (138,675,907) |
Purchases of equity securities | (20,722,416) | (11,303,361) | (17,033,093) |
Sales of fixed maturities: | |||
Available for sale | 19,527,658 | 13,202,367 | 10,081,785 |
Maturity of fixed maturities: | |||
Held to maturity | 24,460,749 | 13,184,665 | 20,577,326 |
Available for sale | 119,113,273 | 105,266,805 | 99,544,479 |
Sales of equity securities | 40,465,748 | 13,779,330 | 20,880,814 |
Net purchases of property and equipment | (149,603) | (105,525) | (1,090,726) |
Net sales (purchases) of short-term investments | 2,718,538 | (5,698,845) | (1,678,908) |
Net cash used in investing activities | (43,377,179) | (37,606,007) | (58,443,382) |
Cash Flows from Financing Activities: | |||
Issuance of common stock | 4,834,514 | 3,249,849 | 15,511,457 |
Cash dividends paid | (16,092,643) | (15,658,950) | (14,822,052) |
Payments on lines of credit | (25,000,000) | (10,000,000) | |
Borrowings under lines of credit | 1,000,000 | ||
Net cash used in financing activities | (36,258,129) | (11,409,101) | (9,310,595) |
Net (decrease) increase in cash | (3,275,531) | 14,761,026 | 13,246,221 |
Cash at beginning of year | 52,594,461 | 37,833,435 | 24,587,214 |
Cash at end of year | 49,318,930 | 52,594,461 | 37,833,435 |
Donegal Financial Services Corporation [Member] | |||
Maturity of fixed maturities: | |||
Sale of investment | $ 33,922,773 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 1 - Summary of Significant Accounting Policies Organization and Business Donegal Mutual Insurance Company (“Donegal Mutual”) organized us as an insurance holding company on August 26, 1986 Mid-Atlantic, Until March 8, 2019, we also owned 48.2% of the outstanding stock of Donegal Financial Services Corporation (“DFSC”), a grandfathered unitary savings and loan holding company that owned Union Community Bank (“UCB”), a state savings bank. Donegal Mutual owned the remaining 51.8% of the outstanding stock of DFSC. We have three segments: our investment function, our commercial lines of insurance and our personal lines of insurance. The commercial lines products of our insurance subsidiaries consist primarily of commercial automobile, commercial multi-peril and workers’ compensation policies. The personal lines products of our insurance subsidiaries consist primarily of homeowners and private passenger automobile policies. At December 31, 2019, Donegal Mutual held approximately 43% of our outstanding Class A common stock and approximately 84% of our outstanding Class B common stock. This ownership provides Donegal Mutual with approximately 71% 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, our insurance subsidiaries and Donegal Mutual 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. In addition, Donegal Mutual has a 100% quota-share reinsurance agreement with Southern Mutual Insurance Company, or Southern Mutual. Donegal Mutual places its assumed business from Southern Mutual into the underwriting pool. 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 an entire personal lines or commercial lines account. Distinctions within the products of Donegal Mutual and our insurance subsidiaries generally relate to specific risk profiles targeted within similar classes of business, such as preferred tier versus standard tier products, but we do not allocate all of the standard risk gradients to one company. Therefore, the underwriting profitability of the business the individual companies write directly will vary. However, as 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 pool. Pooled business represents the predominant percentage of the net underwriting activity of both Donegal Mutual and Atlantic States. We refer to Note 3 - 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 $260,000 of these costs in 2019 and had an accrual of approximately $ 130,000 We and Donegal Mutual sold DFSC to Northwest , 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 2019. This transaction represented the culmination of a banking strategy that began with the formation of DFSC in 2000. Effective December 1, 2019, our insurance subsidiaries Le Mars Insurance Company (“Le Mars”) and Sheboygan Falls Insurance Company (“Sheboygan Falls”) merged with and into Atlantic States (the “Mergers”). As a result of the Mergers, the separate corporate existences of Le Mars and Sheboygan Falls ceased and Atlantic States continued as the surviving insurance company. Atlantic States will place the business of Le Mars and Sheboygan Falls, as their policies renew subsequent to the effective date of the Mergers, into the underwriting pool. Basis of Consolidation Our consolidated financial statements, which we have prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”), include our accounts and those of our wholly owned subsidiaries. We have eliminated all significant inter-company accounts and transactions in consolidation. The terms “we,” “us,” “our” or the “Company” as we use them in the notes to our consolidated financial statements refer to the consolidated entity. Use of Estimates In preparing our consolidated financial statements, our management makes estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the balance sheet and revenues and expenses for the period then ended. Actual results could differ significantly from those estimates. We make estimates and assumptions that could have a significant effect on amounts and disclosures we report in our consolidated financial statements. The most significant estimates relate to our insurance subsidiaries’ reserves for property and casualty insurance unpaid losses and loss expenses. While we believe our estimates and the estimates of our insurance subsidiaries are appropriate, the ultimate amounts may differ from the estimates provided. We regularly review our methods for making these estimates as well as the continuing appropriateness of the estimated amounts, and we reflect any adjustment we consider necessary in our current results of operations. Reclassification We have made certain reclassifications in our prior period financial statements to conform to the current year presentation. Investments We classify our debt securities into the following categories: Held to Maturity - Debt securities that we have the positive intent and ability to hold to maturity; reported at amortized cost. Available for Sale - Debt securities not classified as held to maturity; reported at fair value, with unrealized gains and losses excluded from income and reported as a separate component of stockholders’ equity (net of tax effects). Short-term investments are carried at amortized cost, which approximates fair value. 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, beginning January 1, 2018, 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 an 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. 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, company or geographic events that have negatively impacted the value of a security and rating agency downgrades. 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 investment gains and losses using the specific identification method. We amortize premiums and discounts for mortgage-backed debt securities using anticipated prepayments. Fair Values of Financial Instruments We use the following methods and assumptions in estimating our fair value disclosures: Investments - We present our investments in available-for-sale Cash and Short-Term Investments - The carrying amounts we report in the balance sheet for these instruments approximate their fair values. Premiums and Reinsurance Receivables and Payables - The carrying amounts we report in the balance sheet for these instruments related to premiums and paid losses and loss expenses approximate their fair values. Subordinated Debentures - The carrying amounts we report in the balance sheet for these instruments approximate their fair values. Revenue Recognition Our insurance subsidiaries recognize insurance premiums as income over the terms of the policies they issue. Our insurance subsidiaries calculate unearned premiums on a daily pro-rata Policy Acquisition Costs We defer our insurance subsidiaries’ policy acquisition costs, consisting primarily of commissions, premium taxes and certain other underwriting costs, reduced by ceding commissions, related directly to the successful acquisition of new or renewal insurance contracts. We amortize these deferred policy acquisition costs over the period in which our insurance subsidiaries earn the premiums. The method we follow in computing deferred policy acquisition costs limits the amount of such deferred costs to their estimated realizable value, which gives effect to the premium to be earned, related investment income, losses and loss expenses and certain other costs we expect to incur as our insurance subsidiaries earn the premium. Estimates in the calculation of policy acquisition costs have not shown material variability because of uncertainties in applying accounting principles or as a result of sensitivities to changes in key assumptions. Property and Equipment We report property and equipment at depreciated cost that we compute using the straight-line method based upon estimated useful lives of the assets. Losses and Loss Expenses Liabilities for losses and loss expenses are estimates at a given point in time of the amounts an insurer expects to pay with respect to incurred policyholder claims based on facts and circumstances the insurer knows at that point in time. At the time of establishing its estimates, an insurer recognizes that its ultimate liability for losses and loss expenses will exceed or be less than such estimates. Our insurance subsidiaries base their estimates of liabilities for losses and loss expenses on assumptions as to future loss trends, expected claims severity, judicial theories of liability and other factors. However, during the loss adjustment period, our insurance subsidiaries may learn additional facts regarding individual claims, and, consequently, it often becomes necessary for our insurance subsidiaries to refine and adjust their estimates for these liabilities. We reflect any adjustments to the liabilities for losses and loss expenses of our insurance subsidiaries in our consolidated results of operations in the period in which our insurance subsidiaries make adjustments to their estimates. Our insurance subsidiaries maintain liabilities for the payment of losses and loss expenses with respect to both reported and unreported claims. Our insurance subsidiaries establish these liabilities for the purpose of covering the ultimate costs of settling all losses, including investigation and litigation costs. Our insurance subsidiaries base the amount of their liability for reported losses primarily upon a case-by-case Reserve estimates can change over time because of unexpected changes in assumptions related to our insurance subsidiaries’ external environment and, to a lesser extent, assumptions related to our insurance subsidiaries’ internal operations. For example, our insurance subsidiaries have experienced an increase in claims severity and a lengthening of the claim settlement periods on bodily injury claims during the past several years. These trend changes give rise to greater uncertainty as to the pattern of future loss settlements on bodily injury claims. Related uncertainties regarding future trends include the rate of plaintiff attorney involvement in claims and the cost of medical technologies and procedures. Assumptions related to our insurance subsidiaries’ external environment include the absence of significant changes in tort law and the legal environment that increase liability exposure, consistency in judicial interpretations of insurance coverage and policy provisions and the rate of loss cost inflation. Internal assumptions include consistency in the recording of premium and loss statistics, consistency in the recording of claims, payment and case reserving methodology, accurate measurement of the impact of rate changes and changes in policy provisions, consistency in the quality and characteristics of business written within a given line of business and consistency in reinsurance coverage and collectability of reinsured losses, among other items. To the extent our insurance subsidiaries determine that underlying factors impacting their assumptions have changed, our insurance subsidiaries make adjustments in their reserves that they consider appropriate for such changes. Accordingly, our insurance subsidiaries’ ultimate liability for unpaid losses and loss expenses will likely differ from the amount recorded. Our insurance subsidiaries seek to enhance their underwriting results by carefully selecting the product lines they underwrite. Our insurance subsidiaries’ personal lines products primarily include standard and preferred risks in private passenger automobile and homeowners lines. Our insurance subsidiaries’ commercial lines products primarily include business offices, wholesalers, service providers, contractors, artisans and light manufacturing operations. Our insurance subsidiaries have limited exposure to asbestos and other environmental liabilities. Our insurance subsidiaries write no medical malpractice liability risks. Income Taxes We currently file a consolidated federal income tax return that includes us and our insurance subsidiaries. We account for income taxes using the asset and liability method. The objective of the asset and liability method is to establish deferred tax assets and liabilities for the temporary differences between the financial reporting basis and the tax basis of our assets and liabilities at enacted tax rates we expect to be in effect when we realize or settle such amounts. Credit Risk Our objective is to earn competitive returns by investing in a diversified portfolio of securities. Our portfolio of fixed maturity securities and, to a lesser extent, short-term investments is subject to credit risk. We define this risk as the potential loss in fair value resulting from adverse changes in the borrower’s ability to repay its debt to us. We manage this risk by performing an analysis of prospective investments and through regular reviews of our portfolio by our investment personnel. We also limit the amount of our total investment portfolio that we invest in any one security. Our insurance subsidiaries provide property and liability insurance coverages through independent insurance agencies located throughout their operating areas. Our insurance subsidiaries bill the majority of this business directly to their policyholders, although our insurance subsidiaries bill a portion of their commercial business through their agents, to whom they extend credit in the normal course of business. Our insurance subsidiaries have reinsurance agreements with Donegal Mutual and with a number of major unaffiliated reinsurers. Reinsurance Accounting and Reporting Our insurance subsidiaries rely upon reinsurance agreements to limit their maximum net loss from large single risks or risks in concentrated areas and to increase their capacity to write insurance. Reinsurance does not relieve our insurance subsidiaries from liability to their respective policyholders. To the extent that a reinsurer cannot pay losses for which it is liable under the terms of a reinsurance agreement with one or more of our insurance subsidiaries, our insurance subsidiaries retain continued liability for such losses. However, in an effort to reduce the risk of non-payment, A- A- Stock-Based Compensation We measure all share-based payments to our directors and the directors and employees of our subsidiaries and affiliates, including grants of stock options, using a fair-value-based method and record such expense in our results of operations. In determining the expense we record for stock options we grant to our directors and the 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, expected term, dividend yield and expected volatility. In 2019, 2018 and 2017, we realized $ 64,765 25,938 873,515 Earnings Per Share We calculate basic earnings per share by dividing net income by the weighted-average number of common shares outstanding for the period. Diluted earnings per share reflects the dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. We have two classes of common stock, which we refer to as Class A common stock and Class B common stock. Our Class A common stock is entitled to the declaration and payment of cash dividends that are at least 10 two-class two-class Goodwill and Other Intangible Assets Goodwill represents the excess of the purchase price over the underlying fair value of acquired entities. When completing acquisitions, we seek also to identify separately identifiable intangible assets that we have acquired. We assess goodwill and intangible assets with an indefinite useful life for impairment annually. We also assess goodwill and other intangible assets for impairment upon the occurrence of certain events. In making our assessment, we consider a number of factors including operating results, business plans, economic projections, anticipated future cash flows and current market data. Inherent uncertainties exist with respect to these factors and to our judgment in applying them when we make our assessment. Impairment of goodwill and other intangible assets could result from changes in economic and operating conditions in future periods. |
Impact of New Accounting Standa
Impact of New Accounting Standards | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Changes and Error Corrections [Abstract] | |
Impact of New Accounting Standards | 2 - Impact of New Accounting Standards In January 2016, the FASB issued guidance that generally requires entities to measure equity investments at fair value and recognize changes in fair value in their results of operations. This guidance also simplifies the impairment assessment of equity investments without readily determinable fair values by requiring entities to perform a qualitative assessment to identify impairment. The FASB issued other disclosure and presentation improvements related to financial instruments within the guidance. The guidance was effective for annual and interim reporting periods beginning after December 15, 2017. As a result of the adoption of this guidance on January 1, 2018, we transferred $4.9 million of net unrealized gains from accumulated other comprehensive income (“AOCI”) to retained earnings. We recognized $8.9 million of unrealized of unrealized unrealized unrealized 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 was effective for annual and interim reporting periods beginning after December 15, 2018 and permitted 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 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 early adopted this guidance in 2019. The adoption of this guidance did not 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. We early adopted this guidance in 2019. 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. 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. In November 2019, the FASB issued guidance that delays the effective date for “smaller reporting companies,” as defined in Item 10(f)(1) of Regulation S-K, |
Transactions with Affiliates
Transactions with Affiliates | 12 Months Ended |
Dec. 31, 2019 | |
Text Block [Abstract] | |
Transactions with Affiliates | 3 - Transactions with Affiliates Our insurance subsidiaries conduct business and have various agreements with Donegal Mutual that we describe in the following subparagraphs: a. Reinsurance Pooling and Other Reinsurance Arrangements Atlantic States, our largest insurance subsidiary, and Donegal Mutual have a pooling agreement under which both companies contribute substantially all of their direct written business to the pool and receive an allocated percentage of the pooled underwriting results, excluding certain reinsurance Donegal Mutual assumes from our insurance subsidiaries. In addition, Donegal Mutual has a 100% quota-share reinsurance agreement with Southern Mutual Insurance Company, or Southern Mutual, and Donegal Mutual places its assumed business from Southern Mutual into the underwriting pool. 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. The intent of the pooling agreement is to produce more uniform and stable underwriting results from year to year for each pool participant than they would experience individually and to spread the risk of loss between the participants based on each participant’s relative amount of surplus and relative access to capital. Each participant in the pool has at its disposal the capacity of the entire pool, rather than being limited to policy exposures of a size commensurate with its own capital and surplus. The following amounts represent reinsurance Atlantic States ceded to the pool during 2019, 2018 and 2017: 2019 2018 2017 Premiums earned $ 218,642,984 $ 212,928,238 $ 200,752,599 Losses and loss expenses 173,238,503 159,495,489 140,015,950 Prepaid reinsurance premiums 116,189,929 106,224,424 103,991,861 Liability for losses and loss expenses 183,326,589 158,081,925 136,786,070 The following amounts represent reinsurance Atlantic States assumed from the pool during 2019, 2018 and 2017: 2019 2018 2017 Premiums earned $ 479,835,362 $ 473,512,781 $ 451,470,894 Losses and loss expenses 309,852,141 335,789,280 289,503,373 Unearned premiums 237,106,338 231,958,181 228,988,598 Liability for losses and loss expenses 322,658,731 303,546,744 252,263,547 Donegal Mutual and MICO have a quota-share reinsurance agreement under which Donegal Mutual assumes 25% of the premiums and losses related to the business of MICO. Donegal Mutual and Peninsula have a quota-share reinsurance agreement under which Donegal Mutual assumes 100% of the premiums and losses related to the workers’ compensation product line of Peninsula in certain states. Donegal Mutual places its assumed business from MICO and Peninsula into the underwriting pool. The following amounts represent reinsurance ceded to Donegal Mutual pursuant to these quota-share reinsurance agreements during 2019, 2018 and 2017: 2019 2018 2017 Premiums earned $ 42,079,112 $ 42,813,929 $ 42,578,047 Losses and loss expenses 19,617,787 23,175,456 24,978,631 Prepaid reinsurance premiums 19,217,849 19,047,084 19,827,115 Liability for losses and loss expenses 36,597,834 38,434,078 36,396,109 In 2019, each of our insurance subsidiaries had a catastrophe reinsurance agreement with Donegal Mutual that provided coverage under any one catastrophic occurrence above a set retention of $2,000,000, with a combined retention of $5,000,000 for a catastrophe involving a combination of our insurance subsidiaries, up to the amount Donegal Mutual and our insurance subsidiaries retained under catastrophe reinsurance agreements with unaffiliated reinsurers. Through December 31, 2018, Atlantic States, Southern and Le Mars each had a catastrophe reinsurance agreement with Donegal Mutual that provided coverage under any one catastrophic occurrence above a set retention ($2,500,000, $2,000,000 and $1,000,000 for Atlantic States, Southern and Le Mars, respectively, for 2018), with a combined retention of $5,000,000 for a catastrophe involving a combination of these subsidiaries, up to the amount Donegal Mutual and our insurance subsidiaries retained under catastrophe reinsurance agreements with unaffiliated reinsurers. The set retention was $2,000,000, $1,500,000 and $750,000 for Atlantic States, Southern and Le Mars, respectively, for 2017. Through December 31, 2018, Donegal Mutual and Southern had an excess of loss reinsurance agreement in which Donegal Mutual assumed up to $500,000 of Southern’s losses in excess of $500,000. The following amounts represent reinsurance that our insurance subsidiaries ceded to Donegal Mutual pursuant to these reinsurance agreements during 2019, 2018 and 2017: 2019 2018 2017 Premiums earned $ 14,404,636 $ 19,190,067 $ 17,215,273 Losses and loss expenses 13,769,736 12,899,927 8,953,411 Liability for losses and loss expenses 3,149,907 4,847,176 3,399,207 The following amounts represent the effect of affiliated reinsurance transactions on net premiums our insurance subsidiaries earned during 2019, 2018 and 2017: 2019 2018 2017 Assumed $ 479,835,362 $ 473,512,781 $ 451,470,623 Ceded (275,126,732 ) (274,932,234 ) (260,545,919 ) Net $ 204,708,630 $ 198,580,547 $ 190,924,704 The following amounts represent the effect of affiliated reinsurance transactions on net losses and loss expenses our insurance subsidiaries incurred during 2019, 2018 and 2017: 2019 2018 2017 Assumed $ 309,844,705 $ 335,684,463 $ 288,813,105 Ceded (206,626,026 ) (195,570,872 ) (173,947,992 ) Net $ 103,218,679 $ 140,113,591 $ 114,865,113 b. Expense Sharing Donegal Mutual provides facilities, management and other services to us and our insurance subsidiaries. Donegal Mutual allocates certain related expenses to Atlantic States in relation to the relative participation of Atlantic States and Donegal Mutual in the pooling agreement. Our insurance subsidiaries other than Atlantic States reimburse Donegal Mutual for their personnel costs and bear their proportionate share of information services costs based on their percentage of the total written premiums of the Donegal Insurance Group. Charges for these services totaled $134,143,158, $126,153,511 and $124,999,770 for 201 9 8 7 c. Lease Agreement We lease office equipment 10-year |
Investments
Investments | 12 Months Ended |
Dec. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | 4 - Investments The amortized cost and estimated fair values of our fixed maturities at December 31, 2019 and 2018 are as follows: 2019 Held to Maturity Amortized Cost Gross Gross Estimated Fair U.S. Treasury securities and obligations of U.S. government corporations and agencies $ 82,916,052 $ 1,803,230 $ 68,560 $ 84,650,722 Obligations of states and political subdivisions 204,634,486 14,236,736 288,174 218,583,048 Corporate securities 156,398,001 8,274,912 333,166 164,339,747 Mortgage-backed securities 32,145,243 611,641 16,057 32,740,827 Totals $ 476,093,782 $ 24,926,519 $ 705,957 $ 500,314,344 2019 Available for Sale Amortized Cost Gross Gross Estimated Fair U.S. Treasury securities and obligations of U.S. government corporations and agencies $ 19,302,056 $ 81,773 $ 19,370 $ 19,364,459 Obligations of states and political subdivisions 55,162,046 1,641,171 6,929 56,796,288 Corporate securities 154,946,586 4,477,035 180,312 159,243,309 Mortgage-backed securities 327,428,590 2,856,820 737,663 329,547,747 Totals $ 556,839,278 $ 9,056,799 $ 944,274 $ 564,951,803 2018 Held to Maturity Amortized Cost Gross Gross Estimated Fair U.S. Treasury securities and obligations of U.S. government corporations and agencies $ 76,222,306 $ 174,904 $ 1,086,613 $ 75,310,597 Obligations of states and political subdivisions 159,292,158 8,236,804 704,104 166,824,858 Corporate securities 127,010,071 396,197 4,391,451 123,014,817 Mortgage-backed securities 40,273,983 64,318 450,277 39,888,024 Totals $ 402,798,518 $ 8,872,223 $ 6,632,445 $ 405,038,296 2018 Available for Sale Amortized Cost Gross Gross Estimated Fair U.S. Treasury securities and obligations of U.S. government corporations and agencies $ 45,188,053 $ 25,241 $ 1,003,365 $ 44,209,929 Obligations of states and political subdivisions 73,760,836 1,762,127 306,994 75,215,969 Corporate securities 140,688,937 203,393 3,059,185 137,833,145 Mortgage-backed securities 275,474,625 148,967 6,324,331 269,299,261 Totals $ 535,112,451 $ 2,139,728 $ 10,693,875 $ 526,558,304 At December 31, 2019, our holdings of obligations of states and political subdivisions included general obligation bonds with an aggregate fair value of $182.0 million and an amortized cost of $172.3 million. Our holdings also included special revenue bonds with an aggregate fair value of $93.4 million and an amortized cost of $87.5 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, 201 9 9 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 have segregated within accumulated other comprehensive income income We set forth below the amortized cost and estimated fair value of fixed maturities at December 31, 2019 by contractual maturity. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Amortized Cost Estimated Fair Held to maturity Due in one year or less $ 16,132,891 $ 16,205,362 Due after one year through five years 73,727,277 76,542,800 Due after five years through ten years 182,428,771 191,642,042 Due after ten years 171,659,600 183,183,313 Mortgage-backed securities 32,145,243 32,740,827 Total held to maturity $ 476,093,782 $ 500,314,344 Available for sale Due in one year or less $ 12,943,726 $ 13,075,792 Due after one year through five years 89,684,400 91,992,458 Due after five years through ten years 112,308,452 115,407,525 Due after ten years 14,474,110 14,928,281 Mortgage-backed securities 327,428,590 329,547,747 Total available for sale $ 556,839,278 $ 564,951,803 The cost and estimated fair values of our equity securities at December 31, 2019 were as follows: Cost Gross Gains Gross Losses Estimated Fair Equity securities $ 43,419,136 $ 12,179,912 $ 121,492 $ 55,477,556 The cost and estimated fair values of our equity securities at December 31, 2018 were as follows: Cost Gross Gains Gross Losses Estimated Fair Equity securities $ 40,942,716 $ 4,817,917 $ 2,093,624 $ 43,667,009 The amortized cost of fixed maturities on deposit with various regulatory authorities at December 31, 2019 and 2018 amounted to $8,330,651 and $8,795,334, respectively. We derive d 2019 2018 2017 Fixed maturities $ 29,969,774 $ 27,733,555 $ 26,143,924 Equity securities 1,268,056 1,264,120 999,335 Short-term investments 1,243,104 795,522 407,580 Other 29,251 29,450 33,316 Investment income 32,510,185 29,822,647 27,584,155 Investment expenses (2,995,230 ) (2,914,991 ) (4,056,851 ) Net investment income $ 29,514,955 $ 26,907,656 $ 23,527,304 We present below gross gains and losses from investments, including those we classified as held to maturity, and the change in the difference between fair value and cost of investments: 2019 2018 2017 Gross gains: Fixed maturities $ 470,983 $ 131,660 $ 168,855 Equity securities 10,471,285 1,890,762 6,197,253 Investment in affiliate 12,662,147 23,604,415 2,022,422 6,366,108 Gross losses: Fixed maturities 323,746 630,904 98,723 Equity securities 1,296,052 6,193,027 562,130 1,619,798 6,823,931 660,853 Net investment gains (losses) $ 21,984,617 $ (4,801,509 ) $ 5,705,255 Change in difference between fair value and cost of investments: Fixed maturities $ 38,647,456 $ (20,641,433 ) $ 2,335,578 Equity securities 9,334,127 (3,501,853 ) 1,569,999 Totals $ 47,981,583 $ (24,143,286 ) $ 3,905,577 We recognized $8.9 million of unrealized unrealized losses on equity securities held at December 31, 2019 in net investment gains for 2019. We recognized $1.2 million of unrealized gains and $4.4 million of unrealized losses on equity securities held at December 31, 201 8 8 We held fixed maturities with unrealized losses representing declines that we considered temporary at December 31, 2019 as follows: Less than 12 months 12 months or longer Fair Value Unrealized Fair Value Unrealized U.S. Treasury securities and obligations of U.S. government corporations and agencies $ 7,461,245 $ 45,688 $ 5,394,735 $ 42,242 Obligations of states and political subdivisions 23,339,340 293,516 2,326,813 1,587 Corporate securities 19,362,346 263,280 18,803,546 250,198 Mortgage-backed securities 28,507,123 55,729 74,088,769 697,991 Totals $ 78,670,054 $ 658,213 $ 100,613,863 $ 992,018 We held fixed maturities with unrealized losses representing declines that we considered temporary at December 31, 2018 as follows: Less than 12 months 12 months or longer Fair Value Unrealized Fair Value Unrealized U.S. Treasury securities and obligations of U.S. government corporations and agencies $ 26,342,398 $ 165,774 $ 54,900,027 $ 1,924,204 Obligations of states and political subdivisions 28,321,962 477,357 21,559,520 533,741 Corporate securities 149,269,854 4,482,870 59,396,885 2,967,766 Mortgage-backed securities 82,593,454 912,616 181,379,875 5,861,992 Totals $ 286,527,668 $ 6,038,617 $ 317,236,307 $ 11,287,703 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, beginning January 1, 2018, 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 an 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. 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, company or geographic events that have negatively impacted the value of a security and rating agency downgrades. We held 136 debt securities that were in an unrealized loss position at December 31, 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 did not recognize any impairment losses in 2019, 2018 or 2017. We had no no |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 5 - Fair Value Measurements We account for financial assets using a framework that establishes a hierarchy that ranks the quality and reliability of inputs, or assumptions, used 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. 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 We present our cash and short-term investments at estimated fair value. The carrying values 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 reported in the balance sheet 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 on a regular basis to determine the appropriate level at which to classify them for each reporting period. Based on our review of the methodology and summary of inputs the pricing services use, we have concluded that our Level 1 and Level 2 investments were classified properly at December 31, 2019 and 2018. The following table presents our fair value measurements for our investments in available-for-sale Fair Value Measurements Using Fair Value Quoted Prices in Significant Significant (in thousands) U.S. Treasury securities and obligations of U.S. government corporations and agencies $ 19,364,459 $ — $ 19,364,459 $ — Obligations of states and political subdivisions 56,796,288 — 56,796,288 — Corporate securities 159,243,309 — 159,243,309 — Mortgage-backed securities 329,547,747 — 329,547,747 — Equity securities 55,477,556 53,124,368 2,353,188 — Total investments in the fair value hierarchy $ 620,429,359 $ 53,124,368 $ 567,304,991 $ — The following table presents our fair value measurements for our investments in available-for-sale 8 Fair Value Measurements Using Fair Value Quoted Prices Active for Significant Significant U.S. Treasury securities and obligations of U.S. government corporations and agencies $ 44,209,929 $ — $ 44,209,929 $ — Obligations of states and political subdivisions 75,215,969 — 75,215,969 — Corporate securities 137,833,145 — 137,833,145 — Mortgage-backed securities 269,299,261 — 269,299,261 — Equity securities 30,674,835 28,351,110 2,323,725 — Total investments in the fair value hierarchy 557,233,139 28,351,110 528,882,029 — Investment measured at net asset value 12,992,174 — — — Totals $ 570,225,313 $ 28,351,110 $ 528,882,029 $ — |
Deferred Policy Acquisition Cos
Deferred Policy Acquisition Costs | 12 Months Ended |
Dec. 31, 2019 | |
Insurance [Abstract] | |
Deferred Policy Acquisition Costs | 6 - Deferred Policy Acquisition Costs Changes in our insurance subsidiaries’ deferred policy acquisition costs are as follows: 2019 2018 2017 Balance, January 1 $ 60,615,127 $ 60,289,860 $ 56,309,196 Acquisition costs deferred 121,112,732 121,289,267 119,045,664 Amortization charged to earnings (122,443,000 ) (120,964,000 ) (115,065,000 ) Balance, December 31 $ 59,284,859 $ 60,615,127 $ 60,289,860 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | 7 - Property and Equipment Property and equipment at December 31, 2019 and 2018 consisted of the following: 2019 2018 Estimated Useful Office equipment $ 8,660,163 $ 10,049,884 3-15 years Automobiles 301,119 448,015 5 years Real estate 4,977,813 4,977,813 5-50 Software 2,065,927 2,843,782 5 years 16,005,022 18,319,494 Accumulated depreciation (11,446,950 ) (13,628,790 ) $ 4,558,072 $ 4,690,704 Depreciation expense for 2019, 2018 and 2017 amounted to $282,235, $479,550 and $478,800, respectively. |
Liability for Losses and Loss E
Liability for Losses and Loss Expenses | 12 Months Ended |
Dec. 31, 2019 | |
Text Block [Abstract] | |
Liability for Losses and Loss Expenses | 8 - 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 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 estimates have exceeded their actual liabilities. Changes in our insurance subsidiaries’ estimate of their liability for losses and loss expenses generally reflect actual payments and their evaluation of information received since the prior reporting date. We summarize activity in our insurance subsidiaries’ liability for losses and loss expenses as follows: 2019 2018 2017 Balance at January 1 $ 814,665,224 $ 676,671,727 $ 606,664,590 Less reinsurance recoverable (339,267,525 ) (293,271,257 ) (259,147,147 ) Net balance at January 1 475,397,699 383,400,470 347,517,443 Incurred related to: Current year 519,319,941 540,826,810 480,646,641 Prior years (12,932,277 ) 35,631,610 6,621,413 Total incurred 506,387,664 576,458,420 487,268,054 Paid related to: Current year 278,923,614 308,578,285 288,379,600 Prior years 195,956,327 175,882,906 163,005,427 Total paid 474,879,941 484,461,191 451,385,027 Net balance at December 31 506,905,422 475,397,699 383,400,470 Plus reinsurance recoverable 362,768,427 339,267,525 293,271,257 Balance at December 31 $ 869,673,849 $ 814,665,224 $ 676,671,727 Our insurance subsidiaries recognized a (decrease) increase in their liability for losses and loss expenses of prior years of ($12.9 million), $35.6 million and $6.6 million in 2019, 2018 and 2017, 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 2.7% of the December 31, 2018 net carried reserves and resulted primarily from lower-than-expected severity in the workers’ compensation line of business, partially offset by higher-than-expected severity in the commercial automobile and commercial multi-peril lines of business, for accident years prior to 2019. The majority of the 2019 development related to decreases in the liability for losses and loss expenses of prior years for Atlantic States and MICO. The 2018 development represented 9.3% of the December 31, 2017 net carried reserves and resulted primarily from higher-than-expected severity in the commercial multi-peril, personal automobile and commercial automobile lines of business, offset by lower-than-expected severity in the workers’ compensation line of business, for accident years prior to 2018. The majority of the 2018 development related to increases in the liability for losses and loss expenses of prior years for Atlantic States and Southern. During 2018, our insurance subsidiaries received new information on previously-reported commercial automobile and personal automobile claims that led our insurance subsidiaries to conclude that their prior actuarial assumptions did not fully anticipate recent changes in severity and reporting trends. Our insurance subsidiaries have encountered increasing difficulties in projecting the ultimate severity of automobile losses over recent accident years, which our insurance subsidiaries attribute to worsening litigation trends and an increased delay in the reporting to our insurance subsidiaries of information with respect to the severity of claims. As a result, our insurance subsidiaries’ actuaries increased their projections of the ultimate cost of our insurance subsidiaries’ prior-year personal automobile and commercial automobile losses, and our insurance subsidiaries added $17.7 million to their reserves for personal automobile and $20.8 million to their reserves for commercial automobile for accident years prior to 2018. The 2017 development represented 1.9% of the December 31, 2016 net carried reserves and resulted primarily from higher-than-expected severity in the commercial multi-peril, personal automobile and commercial automobile lines of business, offset by lower-than-expected severity in the workers’ compensation line of business, for accident years prior to 2017. The majority of the 2017 development related to increases in the liability for losses and loss expenses of prior years for Atlantic States and Peninsula. 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 our insurance subsidiaries’ material lines of business 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, our insurance subsidiaries’ IBNR reserves 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 201 9 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, 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 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 or 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 on 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 accurately predict loss frequency 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. For purposes of the claim development tables we present below, our insurance subsidiaries count claims on policies they issue even if they eventually close such claims without making a loss payment. Claims our insurance subsidiaries close without making a loss payment typically generate loss expenses. The methods our insurance subsidiaries have used to summarize claim counts have not changed significantly over the time periods we report in the tables below. The following tables present information about incurred and paid claims development as of December 3 1 , 2019 , net of reinsurance, as well as cumulative claim frequency and the total of IBNR reserves plus expected development on reported claims that our insurance subsidiaries included within their net incurred claims amounts. The tables include unaudited information about incurred and paid claims development for the years ended December 31 , 2010 through 2018 , which we present as supplementary information. Personal Automobile At December 31, 2019 Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Year Ended December 31, Accident Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Total IBNR Cumulative Unaudited (dollars and reported claims in thousands) 2010 $ 117,967 $ 117,552 $ 118,562 $ 118,876 $ 118,916 $ 118,587 $ 118,385 $ 118,289 $ 118,314 $ 118,294 $ 27 70 2011 127,929 131,678 132,987 133,229 133,617 133,218 133,145 133,142 133,207 73 75 2012 130,415 133,201 135,592 136,493 136,552 136,463 136,141 136,677 215 69 2013 124,965 130,737 131,594 132,643 132,604 132,934 132,853 175 66 2014 124,426 124,806 124,210 126,200 126,779 126,734 264 71 2015 137,596 139,333 139,181 142,493 142,408 732 70 2016 150,216 153,937 157,516 157,943 2,372 73 2017 166,690 176,728 175,939 4,884 79 2018 186,580 183,358 10,675 80 2019 161,056 28,339 66 Total $ 1,468,469 Personal Automobile Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Year Ended December 31, Accident Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Unaudited (in thousands) 2010 $ 75,889 $ 96,749 $ 107,662 $ 113,243 $ 116,748 $ 117,812 $ 117,978 $ 118,054 $ 118,093 $ 118,119 2011 87,191 110,249 121,621 127,545 131,319 132,479 132,714 132,777 132,835 2012 87,517 111,941 124,652 130,862 133,428 134,581 135,132 136,137 2013 84,241 109,051 120,118 125,946 130,026 131,326 131,642 2014 85,377 104,736 114,893 120,491 123,815 124,926 2015 93,611 116,303 128,395 135,027 139,121 2016 102,433 129,507 143,321 151,159 2017 111,964 142,372 159,879 2018 115,585 150,175 2019 103,101 Total 1,347,094 All outstanding liabilities before 2010, net of reinsurance 719 Liabilities for claims and claims adjustment expenses, net of reinsurance $ 122,094 Homeowners At December 31, 2019 Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Year Ended December 31, Accident Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Total IBNR Cumulative Unaudited (dollars and reported claims in thousands) 2010 $ 60,315 $ 60,729 $ 60,248 $ 59,972 $ 60,355 $ 60,440 $ 60,443 $ 60,542 $ 60,624 $ 60,641 $ — 25 2011 71,256 70,461 70,436 70,381 70,297 70,351 70,479 70,642 70,682 — 27 2012 53,962 54,794 54,468 54,351 54,281 54,381 54,523 54,537 — 19 2013 50,887 51,121 51,122 50,874 50,988 50,971 51,008 — 13 2014 56,916 58,378 57,680 57,332 57,288 57,402 (4 ) 18 2015 63,359 63,925 63,053 63,071 63,099 45 14 2016 62,443 64,064 63,735 63,355 78 13 2017 79,283 79,911 79,305 724 18 2018 81,965 83,385 1,657 19 2019 73,294 6,775 14 Total $ 656,708 Homeowners Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Year Ended December 31, Accident Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Unaudited (in thousands) 2010 $ 47,419 $ 57,334 $ 59,283 $ 59,875 $ 60,239 $ 60,486 $ 60,501 $ 60,525 $ 60,540 $ 60,557 2011 57,588 69,345 70,125 70,351 70,541 70,626 70,648 70,692 70,692 2012 46,566 53,619 54,028 54,298 54,317 54,356 54,557 54,557 2013 40,949 49,410 50,210 50,478 51,043 50,902 50,967 2014 45,823 56,255 56,990 57,195 56,995 57,243 2015 51,885 61,542 62,204 62,590 62,844 2016 50,125 61,145 62,760 63,144 2017 67,077 77,663 78,006 2018 70,385 79,892 2019 58,074 Total 635,976 All outstanding liabilities before 2010, net of reinsurance 30 Liabilities for claims and claims adjustment expenses, net of reinsurance $ 20,762 Commercial Automobile At December 31, 2019 Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Year Ended December 31, Accident Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Total IBNR Cumulative Unaudited (dollars and reported claims in thousands) 2010 $ 19,315 $ 19,913 $ 20,695 $ 21,477 $ 21,490 $ 21,756 $ 21,746 $ 21,713 $ 21,726 $ 21,768 $ 9 7 2011 26,642 27,157 28,570 28,893 29,112 29,107 29,487 29,751 29,542 18 9 2012 26,557 27,720 30,606 31,435 31,278 31,648 31,803 31,896 28 8 2013 32,902 33,749 34,751 35,240 36,404 36,435 36,569 89 9 2014 42,760 44,544 47,326 48,213 49,284 49,168 270 11 2015 46,526 48,323 51,412 54,259 54,517 662 12 2016 54,302 57,353 65,905 67,127 2,134 13 2017 61,484 67,927 67,697 5,149 14 2018 79,307 81,396 11,763 15 2019 88,864 27,764 15 Total $ 528,544 Commercial Automobile Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Year Ended December 31, Accident Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Unaudited (in thousands) 2010 $ 10,778 $ 14,180 $ 16,426 $ 19,030 $ 20,804 $ 21,014 $ 21,482 $ 21,549 $ 21,558 $ 21,559 2011 13,876 19,106 24,267 26,973 28,014 28,758 28,836 29,102 29,474 2012 13,642 20,240 23,718 27,417 29,873 30,402 31,104 31,228 2013 16,306 23,557 26,879 31,053 34,083 36,004 36,106 2014 22,707 31,089 39,436 44,374 47,290 48,418 2015 23,875 35,342 41,678 48,261 51,605 2016 27,033 38,237 48,837 57,237 2017 28,707 40,213 49,703 2018 33,862 47,941 2019 36,948 Total 410,219 All outstanding liabilities before 2010, net of reinsurance 47 Liabilities for claims and claims adjustment expenses, net of reinsurance $ 118,372 Commercial Multi-Peril At December 31, 2019 Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Year Ended December 31, Accident Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Total IBNR Cumulative Unaudited (dollars and reported claims in thousands) 2010 $ 28,745 $ 29,656 $ 29,390 $ 29,169 $ 29,373 $ 29,453 $ 29,463 $ 29,779 $ 29,925 $ 30,105 $ — 6 2011 33,054 35,411 35,942 37,576 37,385 38,270 38,105 38,160 38,434 — 7 2012 29,789 30,716 32,449 34,117 35,755 36,214 36,525 36,876 — 6 2013 35,683 35,679 37,292 37,205 37,981 37,365 37,453 38 6 2014 48,204 50,135 51,843 52,336 53,294 53,116 147 7 2015 42,070 43,874 44,728 45,104 45,873 519 6 2016 43,005 46,988 48,267 48,871 2,015 6 2017 56,185 56,043 56,517 4,604 7 2018 66,265 66,470 10,568 7 2019 71,865 21,633 6 Total $ 485,580 Commercial Multi-Peril Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Year Ended December 31, Accident Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Unaudited (in thousands) 2010 $ 17,007 $ 22,017 $ 24,749 $ 26,832 $ 27,768 $ 28,681 $ 28,906 $ 29,632 $ 29,721 $ 29,923 2011 18,773 24,767 30,286 33,526 36,722 37,759 38,240 38,366 38,413 2012 16,666 23,384 26,634 29,370 33,327 35,331 35,909 36,329 2013 19,875 26,216 29,159 33,614 35,104 36,321 37,333 2014 27,920 35,520 40,936 47,021 50,017 51,615 2015 21,837 29,419 34,323 39,162 42,849 2016 19,660 29,402 34,612 41,193 2017 27,399 36,926 42,691 2018 30,597 42,296 2019 28,210 Total 390,852 All outstanding liabilities before 2010, net of reinsurance 425 Liabilities for claims and claims adjustment expenses, net of reinsurance $ 95,153 Workers’ Compensation At December 31, 2019 Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Year Ended December 31, Accident Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Total IBNR Cumulative Unaudited (dollars and reported claims in thousands) 2010 $ 27,304 $ 27,859 $ 27,010 $ 26,637 $ 26,944 $ 27,121 $ 27,037 $ 26,984 $ 26,801 $ 26,829 $ 37 5 2011 32,490 35,757 36,614 36,369 35,670 35,039 35,194 34,926 35,034 53 6 2012 39,142 39,516 38,827 37,926 37,163 36,468 35,954 35,932 75 6 2013 46,325 47,027 44,289 42,828 42,327 42,555 42,651 187 6 2014 51,508 51,553 49,288 48,537 47,540 47,693 264 6 2015 53,332 49,615 45,991 44,986 43,006 836 6 2016 58,814 49,802 47,883 44,969 1,630 6 2017 60,450 56,351 52,687 3,362 6 2018 62,197 55,291 7,081 6 2019 60,998 19,280 6 Total $ 445,090 Workers’ Compensation Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Year Ended December 31, Accident Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Unaudited (in thousands) 2010 $ 8,066 $ 15,937 $ 21,176 $ 23,137 $ 24,539 $ 25,337 $ 25,804 $ 26,050 $ 26,295 $ 26,301 2011 9,157 21,450 27,517 31,905 32,394 33,067 33,577 33,963 34,109 2012 11,097 22,963 28,812 31,244 33,196 34,177 34,460 34,622 2013 13,052 26,043 32,783 36,351 38,877 39,617 40,361 2014 13,932 28,513 36,284 40,393 42,465 43,866 2015 13,071 27,531 34,192 36,929 37,936 2016 14,709 30,344 37,178 40,570 2017 15,581 31,990 39,684 2018 17,644 31,928 2019 16,939 Total 346,316 All outstanding liabilities before 2010, net of reinsurance 3,261 Liabilities for claims and claims adjustment expenses, net of reinsurance $ 102,035 The following table presents a reconciliation of the net incurred and paid claims development tables to the liability for claims and claims adjustment expenses in our consolidated balance sheet: At December 31, (in thousands) 2019 Net outstanding liabilities: Personal automobile $ 122,094 Homeowners 20,762 Commercial automobile 118,372 Commercial multi-peril 95,153 Workers ’ 102,035 Other 12,524 470,940 Reinsurance recoverable: Personal automobile $ 119,364 Homeowners 10,216 Commercial automobile 70,973 Commercial multi-peril 58,765 Workers ’ 81,837 Other 7,177 348,332 Unallocated loss adjustment expenses $ 50,402 Gross liability for unpaid losses and loss expenses $ 869,674 The following table presents supplementary information about average historical claims duration as of December 31, 2019: Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance Years 1 2 3 4 5 6 7 8 9 10 Personal automobile 64.6 % 17.3 % 8.8 % 4.6 % 2.7 % 0.9 % 0.2 % 0.3 % — % — % Homeowners 81.5 15.3 1.5 0.6 0.3 0.2 0.1 — — — Commercial automobile 44.0 18.1 13.3 11.3 6.6 2.5 1.2 0.5 0.7 — Commercial multi-peril 47.8 17.0 10.2 10.0 6.6 3.5 1.6 1.3 0.2 0.7 Workers’ compensation 29.9 31.5 16.3 8.2 4.1 2.5 1.4 0.8 0.7 — |
Borrowings
Borrowings | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Borrowings | 9 - 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 December 31, 2019, we had no agreement during 2019. Atlantic States is a member of the Federal Home Loan Bank (“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 exchanged a variable-rate cash advance related to the early termination of its previous cash advance. The new cash advance carries a fixed interest rate of FHLB stock purchased and owned as part of the agreement $ 1,639,200 Collateral pledged, at par (carrying value $36,295,910) 36,370,886 Borrowing capacity currently available 240,569 MICO is a member of the FHLB of Indianapolis. During the second quarter of 2018, MICO terminated its line of credit with the FHLB of Indianapolis. Subordinated Debentures In January 2002, West Bend Mutual Insurance Company (“West Bend”) purchased a surplus note from MICO for $5.0 million to increase MICO’s statutory surplus. On December 1, 2010, Donegal Mutual purchased the surplus note from West Bend at face value. The surplus note carries an interest rate of 5.00%, and any repayment of principal or interest requires prior insurance regulatory approval. Upon receipt of regulatory approval, MICO paid $250,000 in interest to Donegal Mutual during each of 2019, 2018 and 2017. |
Reinsurance
Reinsurance | 12 Months Ended |
Dec. 31, 2019 | |
Insurance [Abstract] | |
Reinsurance | 10 - Reinsurance Unaffiliated Reinsurers 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- A- • excess of loss reinsurance, under which the losses of Donegal Mutual and our insurance subsidiaries were 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 recovered, 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 purchased facultative reinsurance to cover exposures in excess of the covered limits of their third-party reinsurance agreements. As many as 31 reinsurers provided coverage for 2019 on any one treaty with no reinsurer taking more than 40% of any one treaty. In addition to the pooling agreement and third-party reinsurance, our insurance subsidiaries had a catastrophe reinsurance agreement with Donegal Mutual, under which each of our insurance subsidiaries recovered 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 provided 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. The following amounts represent ceded reinsurance transactions with unaffiliated reinsurers during 2019, 2018 and 2017: 2019 2018 2017 Premiums written $ 36,941,997 $ 50,160,604 $ 51,241,267 Premiums earned 39,732,282 51,266,000 49,633,348 Losses and loss expenses 33,615,819 50,652,202 44,575,268 Prepaid reinsurance premiums 7,067,989 10,108,269 11,213,665 Liability for losses and loss expenses 139,694,097 137,904,346 116,689,871 Total Reinsurance The following amounts represent total ceded reinsurance transactions with both affiliated and unaffiliated reinsurers during 2019, 2018 and 2017: 2019 2018 2017 Premiums earned $ 314,859,014 $ 326,198,234 $ 310,179,267 Losses and loss expenses 240,241,845 246,223,074 218,523,260 Prepaid reinsurance premiums 142,475,767 135,379,777 135,032,641 Liability for losses and loss expenses 362,768,427 339,267,525 293,271,257 The following amounts represent the effect of reinsurance on premiums written for 2019, 2018 and 2017: 2019 2018 2017 Direct $ 589,572,526 $ 594,078,723 $ 584,007,351 Assumed 485,233,762 476,482,451 466,087,983 Ceded (322,204,999 ) (326,545,370 ) (320,956,412 ) Net premiums written $ 752,601,289 $ 744,015,804 $ 729,138,922 The following amounts represent the effect of reinsurance on premiums earned for 2019, 2018 and 2017: 2019 2018 2017 Direct $ 591,101,804 $ 593,976,241 $ 561,178,447 Assumed 479,835,610 473,512,866 451,515,575 Ceded (314,859,014 ) (326,198,234 ) (310,179,267 ) Net premiums earned $ 756,078,400 $ 741,290,873 $ 702,514,755 Percentage of assumed premiums earned to net premiums earned 63.5 % 63.9 % 64.3 % |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 11 - Income Taxes On December 22, 2017, the Tax Cuts and Jobs Act of 2017 (“ the TCJA”) was signed into law. The TCJA contains significant changes to corporate taxation, including the reduction of the corporate income tax rate to 21%, the acceleration of expensing for certain business assets, the one-time transition tax related to the transition of U.S. international tax from a worldwide tax system to a territorial tax system, the repeal of the domestic production deduction, additional limitations on the deductibility of interest expense, the repeal of the corporate alternative minimum tax and expanded limitations on the deductibility of executive compensation. The key impacts of the TCJA on our financial statements for 2017 were the revaluation of our deferred tax balances to the new corporate tax rate that resulted in additional tax expense of $4.8 million and the reclassification of an alternative minimum tax credit carryforward of $8.5 million from net deferred tax assets to federal income taxes recoverable. We generated sufficient taxable income in 2019 to fully utilize this alternative minimum tax credit carryforward. Our provision for income tax expense (benefit) for 2019, 2018 and 2017 consisted of the following: 2019 2018 2017 Current federal income tax $ 8,454,358 $ (11,296,704 ) $ (2,139,061 ) Deferred federal income tax 649,928 (4,179,805 ) 7,137,423 Federal income tax expense (benefit) $ 9,104,286 $ (15,476,509 ) $ 4,998,362 Pennsylvania income tax 825,000 — — Income tax expense (benefit) $ 9,929,286 $ (15,476,509 ) $ 4,998,362 Our effective tax rate is different from the amount computed at the statutory federal rate of 21% for 2019 and 2018 and 35% for 2017. The reasons for such difference and the related tax effects are as follows: 2019 201 8 201 7 Income (loss) before income taxes $ 57,081,030 $ (48,236,849 ) $ 12,114,462 Computed “expected” taxes 11,987,016 (10,129,738 ) 4,240,062 Tax-exempt (1,325,197 ) (1,521,090 ) (3,241,530 ) Proration 357,044 405,204 518,948 Effect of tax reform — — 4,752,547 Dividends received deduction (1,913,238 ) (99,726 ) (508,409 ) Net operating loss carryback — (4,210,523 ) — Tax benefit on exercise of options (64,765 ) (25,938 ) (873,515 ) Other, net 236,676 105,302 110,259 Pennsylvania income tax, net of federal benefit 651,750 — — Income tax expense (benefit) $ 9,929,286 $ (15,476,509 ) $ 4,998,362 The tax effects of temporary differences that give rise to significant portions of our deferred tax assets and deferred tax liabilities at December 31, 2019 and 2018 are as follows: 2019 2018 Deferred tax assets: Unearned premium $ 15,482,366 $ 15,634,433 Loss reserves 7,820,683 7,644,415 Net operating loss carryforward 200,942 3,090,010 Net state operating loss carryforward—DGI Parent 7,519,991 8,070,196 Net unrealized losses — 3,782,145 Other 2,603,155 2,517,791 Total gross deferred tax assets 33,627,137 40,738,990 Less valuation allowance (7,538,024 ) (8,334,663 ) Net deferred tax assets 26,089,113 32,404,327 Deferred tax liabilities: Deferred policy acquisition costs 12,449,820 12,729,176 Loss reserve transition adjustment 1,733,056 2,339,068 Other 3,391,926 4,266,328 Total gross deferred tax liabilities 17,574,802 19,334,572 Net deferred tax asset $ 8,514,311 $ 13,069,755 We recorded a net operating loss carryforward for the portion of our taxable loss for 2018 that exceeded our taxable income in 2016 and 2017. We utilized the full net operating loss carryforward in 2019. We also recorded a loss reserve transition adjustment in 2018 related to changes the TCJA required with respect to the calculation of loss reserve discounting. Pursuant to the provisions of the TCJA, we will include the loss reserve transition adjustment in our taxable income over eight years beginning in 2018. We provide a valuation allowance when we believe it is more likely than not that we will not realize some portion of a deferred tax asset. At December 31, 2019 and 2018, we established a valuation allowance of $18,033 and $264,467, respectively, related tax-planning Tax years 2016 through 2019 remained open for examination by tax authorities at December 31, 201 9 |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2019 | |
Federal Home Loan Banks [Abstract] | |
Stockholders' Equity | 12 - Stockholders’ Equity Each share of our Class A common stock outstanding at the time of the declaration of any dividend or other distribution payable in cash upon the shares of our Class B common stock is entitled to a dividend or distribution payable at the same time and to stockholders of record on the same date in an amount at least 10% greater than any dividend declared upon each share of our Class B common stock. In the event of our merger or consolidation with or into another entity, the holders of our Class A common stock and the holders of our Class B common stock are entitled to receive the same per share consideration in such merger or consolidation. In the event of our liquidation, dissolution or winding-up, pro-rata 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 additional shares of our Class A common stock at prices prevailing from time to time in the open market subject to the provisions of the SEC Rule 10b-18 9 At December 31, 2019 and 2018, our treasury stock consisted of 3,002,588 and 72,465 shares of Class A common stock and Class B common stock, respectively. |
Stock Compensation Plans
Stock Compensation Plans | 12 Months Ended |
Dec. 31, 2019 | |
Postemployment Benefits [Abstract] | |
Stock Compensation Plans | 13 - Stock Compensation Plans Equity Incentive Plans Since 1996, we have maintained an Equity Incentive Plan for Employees. During 2019, we adopted a plan that made a total of 4,500,000 shares of Class A common stock available for issuance to employees of our subsidiaries and affiliates. The plan provides for the granting of awards by our board of directors in the form of stock options, stock appreciation rights, restricted stock or any combination of the above. The plan provides that stock options may become exercisable up to five years from their date of grant, with an option price not less than fair market value on the date preceding the date of grant. We have not granted any stock appreciation rights. Since 1996, we have maintained an Equity Incentive Plan for Directors. During 2019, we adopted a plan that made 500,000 shares of Class A common stock available for issuance to our directors and the directors of our subsidiaries and affiliates.We may make awards in the form of stock options. The plan also provides for the issuance of 500 shares of restricted stock on the first business day of January in each year to each of our directors and each director of Donegal Mutual who does not serve as one of our directors. We issued 8,500 shares of restricted stock on January 2, 2019 under our director plan. We issued 8,500 shares of restricted stock on January 2, 2018 under our prior prior No further shares are available for future option grants for plans in effect prior to 2019. We measure all share-based payments to employees, including grants of employee stock options, using a fair-value-based method and record such 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, expected term, dividend yield and expected volatility. The risk-free interest rate is the implied yield currently available on U.S. Treasury zero coupon issues with a remaining term equal to the expected term used as the assumption in the model. We base the expected term of an option award on our historical experience for similar awards. We determine the dividend yield by dividing the per share dividend by the grant date stock price. We base the expected volatility on the volatility of our stock price over a historical period comparable to the expected term. The weighted-average grant date fair value of options we granted during 2019 was $1.15. We calculated this fair value based upon a risk-free interest rate of 1.64%, an expected life of three years, an expected volatility of 17% and an expected dividend yield of 4%. The weighted-average grant date fair value of options we granted during 2018 was $1.66. We calculated this fair value based upon a risk-free interest rate of 2.68%, an expected life of three years, an expected volatility of 22% and an expected dividend yield of 4%. The weighted-average grant date fair value of options we granted during 2017 was $1.81. We calculated this fair value based upon a risk-free interest rate of 2.01%, an expected life of three years, an expected volatility of 19% and an expected dividend yield of 3%. We charged compensation expense for our stock compensation plans against income before income taxes of $1.4 million, $1.7 million and $2.0 million for the years ended December 31, 2019, 2018 and 2017, respectively, with a corresponding income tax benefit of $288,901, $354,412 and $692,164. At December 31, 2019 and 2018, our total unrecognized compensation cost related to non-vested During 201 9 Information regarding activity in our stock option plans follows: Number of Weighted- Per Share Outstanding at December 31, 2016 9,338,648 $ 14.95 Granted - 2017 943,000 17.58 Exercised - 2017 (924,019 ) 14.45 Forfeited - 2017 (93,167 ) 15.43 Outstanding at December 31, 2017 9,264,462 15.26 Granted - 2018 1,063,000 13.69 Exercised - 2018 (79,961 ) 13.74 Forfeited - 2018 (222,639 ) 16.00 Outstanding at December 31, 2018 10,024,862 15.09 Granted - 2019 1,045,400 14.97 Exercised - 2019 (217,498 ) 13.23 Forfeited - 2019 (416,774 ) 15.88 Outstanding at December 31, 2019 10,435,990 $ 15.09 Exercisable at: December 31, 2017 6,946,677 $ 14.90 December 31, 2018 7,936,659 $ 15.02 December 31, 2019 8,449,389 $ 15.13 Shares available for future option grants at December 31, 201 9 million The following table summarizes information about stock options outstanding at December 31, 201 9 Grant Date Exercise Number of Weighted-Average Number of July 27, 2011 $ 12.50 907,101 2.0 years 907,101 December 20, 2012 14.50 1,009,819 3.0 years 1,009,819 December 19, 2013 15.90 1,991,804 4.0 years 1,991,804 December 18, 2014 15.80 1,270,581 5.0 years 1,270,581 December 17, 2015 13.64 1,191,845 1.0 years 1,191,845 December 15, 2016 16.48 1,202,808 2.0 years 1,202,808 December 21, 2017 17.60 799,832 3.0 years 533,168 December 20, 2018 13.69 1,016,800 4.0 years 338,930 March 4, 2019 13.51 10,000 4.2 years 3,333 December 19 9 14.98 1,035,400 5.0 years — Total 10,435,990 8,449,389 Employee Stock Purchase Plan Since 1996, we have maintained an Employee Stock Purchase Plan. During 2011, we adopted a plan that made 300,000 shares of our Class A common stock available for issuance. During 2019, we amended the plan to make 500,000 shares of our Class A common stock available for issuance. The plan extends over a 10-year A summary of plan activity follows: Shares Issued Price Shares January 1, 2017 13.76 18,512 July 1, 2017 13.52 25,155 January 1, 2018 13.34 20,662 July 1, 2018 11.57 27,802 January 1, 2019 11.60 24,834 July 1, 2019 12.24 22,926 On January 1, 2020, we issued 20,424 shares at a price of $12.28 per share under this plan. Agency Stock Purchase Plan Since 1996, we have maintained an Agency Stock Purchase Plan. During 2015, we adopted a plan that made 350,000 shares of our Class A common stock available for issuance to agents of our insurance subsidiaries and Donegal Mutual. The plan permits an agent to invest up to $12,000 per subscription period (April 1 to September 30 and October 1 to March 31 of each year) under various methods. We issue stock at the end of each subscription period at a price equal to 90% of the average market price during the last ten trading days of each subscription period. During 2019, 2018 and 2017, we issued 110,836, 117,935 and 104,418 shares, respectively, under this plan. The expense we recognized under the plan was not material. |
Statutory Net Income, Capital a
Statutory Net Income, Capital and Surplus and Dividend Restrictions | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Statutory Net Income, Capital and Surplus and Dividend Restrictions | 14 - Statutory Net Income, Capital and Surplus and Dividend Restrictions The following table presents selected information, as filed with state insurance regulatory authorities, for our insurance subsidiaries as determined in accordance with accounting practices prescribed or permitted by such insurance regulatory authorities: 2019 2018 2017 Atlantic States: Statutory capital and surplus $ 259,030,868 $ 230,736,313 $ 260,428,754 Statutory unassigned surplus 155,909,822 140,713,118 172,709,955 Statutory net income 22,282,231 (23,458,516 ) (2,037,672 ) Southern: Statutory capital and surplus 54,405,568 45,355,785 54,503,581 Statutory unassigned (deficit) surplus (2,375,794 ) (6,346,270 ) 2,914,532 Statutory net income 5,061,477 (9,822,457 ) (3,375,434 ) Peninsula: Statutory capital and surplus 39,244,570 32,717,996 39,396,818 Statutory unassigned surplus 20,936,805 14,415,949 21,148,253 Statutory net income 7,360,378 (6,316,130 ) (841,119 ) MICO: Statutory capital and surplus 65,768,590 55,708,442 52,796,379 Statutory unassigned surplus 38,910,008 28,949,919 26,162,540 Statutory net income 9,976,610 6,350,686 7,931,774 Our principal source of cash for payment of dividends is dividends from our insurance subsidiaries. State insurance laws require our insurance subsidiaries to maintain certain minimum capital and surplus amounts on a statutory basis. Our insurance subsidiaries are subject to regulations that restrict the payment of dividends from statutory surplus and may require prior approval of their domiciliary insurance regulatory authorities. Our insurance subsidiaries are also subject to risk-based capital (“RBC”) requirements that may further impact their ability to pay dividends. Our insurance subsidiaries’ statutory capital and surplus at December 31, 2019 exceeded the amount of statutory capital and surplus necessary to satisfy regulatory |
Reconciliation of Statutory Fil
Reconciliation of Statutory Filings to Amounts Reported in the Consolidated Financial Statements | 12 Months Ended |
Dec. 31, 2019 | |
Text Block [Abstract] | |
Reconciliation Of Statutory Filings To Amounts Reported | 15 - Reconciliation of Statutory Filings to Amounts Reported in the Consolidated Financial Statements Our insurance subsidiaries must file financial statements with state insurance regulatory authorities using accounting principles and practices prescribed or permitted by those authorities. We refer to these accounting principles and practices as statutory accounting principles (“SAP”). Accounting principles used to prepare these SAP financial statements differ from those used to prepare financial statements on the basis of GAAP. Reconciliations of statutory net income income Year Ended December 31, 2019 2018 2017 Statutory net income (loss) of insurance subsidiaries $ 44,680,696 $ (33,246,417 ) $ 1,677,549 Increases (decreases): Deferred policy acquisition costs (1,330,268 ) 325,267 3,980,664 Deferred federal income taxes 639,284 4,179,807 1,334,410 Salvage and subrogation recoverable 207,000 2,061,600 1,199,200 Consolidating eliminations and adjustments (11,048,314 ) (16,013,971 ) (13,534,428 ) Parent-only net income 14,003,346 9,933,374 12,458,705 Net income (loss) $ 47,151,744 $ (32,760,340 ) $ 7,116,100 December 31, 2019 2018 2017 Statutory capital and surplus of insurance subsidiaries $ 418,449,596 $ 364,518,536 $ 407,125,532 Increases (decreases): Deferred policy acquisition costs 59,284,859 60,615,127 60,289,860 Deferred federal income taxes (15,477,843 ) (20,094,374 ) (14,422,511 ) Salvage and subrogation recoverable 20,245,200 20,038,200 17,976,600 Non-admitted 1,727,754 1,904,083 1,960,089 Fixed maturities (326,795 ) (16,528,367 ) (8,748,140 ) Parent-only equity and other adjustments (32,887,252 ) (11,583,304 ) (15,485,326 ) Stockholders’ equity $ 451,015,519 $ 398,869,901 $ 448,696,104 |
Supplementary Cash Flow Informa
Supplementary Cash Flow Information | 12 Months Ended |
Dec. 31, 2019 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplementary Cash Flow Information | 16 - Supplementary Cash Flow Information The following table reflects net income taxes we (recovered) paid and interest we paid during 2019, 2018 and 2017: 2019 2018 2017 Income taxes $ (9,827,433 ) $ (3,290,247 ) $ 3,050,000 Interest 321,585 1,280,352 1,341,706 |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 17 - Earnings Per Share We have two classes of common stock, which we refer to as Class A common stock and Class B common stock. Our Class A common stock is entitled to be paid cash dividends that are at least 10% higher than the cash dividends we pay on our Class B common stock. Accordingly, we use the two-class two-class We present below a reconciliation of the numerators and denominators we used in the basic and diluted per share computations for our Class A common stock: Year Ended December 31, (in thousands, except per share amounts) 2019 2018 2017 Basic earnings (loss) per share: Numerator: Allocation of net income (loss) $ 38,718 $ (26,691 ) $ 5,879 Denominator: Weighted-average shares outstanding 22,986 22,705 21,799 Basic earnings (loss) per share $ 1.68 $ (1.18 ) $ 0.27 Diluted earnings (loss) per share: Numerator: Allocation of net income (loss) $ 38,718 $ (26,691 ) $ 5,879 Denominator: Number of shares used in basic computation 22,986 22,705 21,799 Weighted-average effect of dilutive securities Add: Director and employee stock options 211 — 843 Number of shares used in per share computations 23,197 22,705 22,642 Diluted earnings (loss) per share $ 1.67 $ (1.18 ) $ 0.26 We used the following information in the basic and diluted per share computations for our Class B common stock: Year Ended December 31, (in thousands, except per share amounts) 2019 2018 2017 Basic and diluted earnings (loss) per share: Numerator: Allocation of net income (loss) $ 8,434 $ (6,069 ) $ 1,237 Denominator: Weighted-average shares outstanding 5,577 5,577 5,577 Basic and diluted earnings (loss) per share $ 1.51 $ (1.09 ) $ 0.22 During 2019, we did not include options to purchase 5,531,561 shares of our Class A common stock in the computation of diluted earnings per share because the exercise price of the options was greater than the average market price of our Class A common stock. |
Condensed Financial Information
Condensed Financial Information of Parent Company | 12 Months Ended |
Dec. 31, 2019 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Financial Information of Parent Company | 18 - Condensed Financial Information of Parent Company Condensed Balance Sheets (in thousands) December 31, 2019 2018 Assets Investment in subsidiaries/affiliates (equity method) $ 489,657 $ 465,030 Short-term investments 2,502 29 Cash 2,350 1,542 Property and equipment 944 928 Other — — Total assets $ 495,453 $ 467,529 Liabilities and Stockholders’ Equity Liabilities Cash dividends declared to stockholders $ 4,075 $ 3,948 Borrowings under lines of credit 35,000 60,000 Other 5,362 4,711 Total liabilities 44,437 68,659 Stockholders’ equity 451,016 398,870 Total liabilities and stockholders’ equit y $ 495,453 $ 467,529 Condensed Statements of Income Income (in thousands) Year Ended December 31, 2019 2018 2017 Statements of Income Revenues Dividends from subsidiaries $ 4,000 $ 11,000 $ 13,000 Realized investment gains 12,378 — — Other 1,009 3,196 2,131 Total revenues 17,387 14,196 15,131 Expenses Operating expenses 1,420 1,628 1,433 Interest 1,327 2,224 1,929 Total expenses 2,747 3,852 3,362 Income before income tax expense (benefit) and equity in undistributed net income (loss) 14,640 10,344 11,769 Income tax expense (benefit) 636 411 (690 ) Income before equity in undistributed net income 14,004 9,933 12,459 Equity in undistributed net income 33,148 (42,693 ) (5,343 ) Net income $ 47,152 $ (32,760 ) $ 7,116 Statements of Comprehensive Income Net income $ 47,152 $ (32,760 ) $ 7,116 Other comprehensive income (loss) , Unrealized gain (loss) - 14,732 (6,625 ) 46 Other comprehensive income (loss), net of tax 14,732 (6,625 ) 46 Comprehensive income (loss ) $ 61,884 $ (39,385 ) $ 7,162 Condensed Statements of Cash Flows (in thousands) Year Ended December 31, 2019 2018 2017 Cash flows from operating activities: Net income (loss) $ 47,152 $ (32,760 ) $ 7,116 Adjustments: Equity in undistributed net (income) loss of subsidiaries (33,148 ) 42,694 5,343 Realized investment gains (12,378 ) — — Dividends received from DFSC — — 1,037 Other 490 2,531 1,011 Net adjustments (45,036 ) 45,225 7,391 Net cash provided 2,116 12,465 14,507 Cash flows from investing activities: Net (purchases) sale of short-term investments (2,473 ) — 1 Net purchase of property and equipment (150 ) (106 ) (788 ) Sale of DFSC 33,923 — — Sale of equity securities - available for sale 20,287 — — Investment in subsidiaries (18,283 ) (2,644 ) (2,992 ) Other — (1 ) (1 ) Net cash received (used) 33,304 (2,751 ) (3,780 ) Cash flows from financing activities: Cash dividends paid (16,093 ) (15,659 ) (14,821 ) Issuance of common stock 6,481 3,250 15,511 Payments on lines of credit (25,000 ) — (10,000 ) Borrowings under lines of credit — 1,000 — Net cash used (34,612 ) (11,409 ) (9,310 ) Net change in cash 808 (1,695 ) 1,417 Cash at beginning of year 1,542 3,237 1,820 Cash at end of year $ 2,350 $ 1,542 $ 3,237 |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | 19 - Segment Information We have three reportable segments, which consist of our investment function, our commercial lines of insurance and our personal lines of insurance medium-sized and personal lines of insurance to ividuals We evaluate the performance of the commercial lines and personal lines primarily based upon our insurance subsidiaries’ underwriting results as determined under SAP for our total business. We do not allocate assets to the commercial and personal lines and review the two segments in total for purposes of decision-making. We operate only in the United States, and no single customer or agent provides 10 percent or more of our revenues. Financial data by segment is as follows: 2019 2018 2017 (in thousands) Revenues: Premiums earned: Commercial lines $ 385,465 $ 337,924 $ 318,391 Personal lines 370,613 403,367 384,124 GAAP premiums earned 756,078 741,291 702,515 Net investment income 29,515 26,908 23,527 Investment gains (losses) 21,985 (4,802 ) 5,705 Equity in earnings of DFSC 295 2,694 1,622 Other 4,578 5,737 5,658 Total revenues $ 812,451 $ 771,828 $ 739,027 2019 2018 2017 (in thousands) Income (loss) before income taxes: Underwriting income (loss): Commercial lines $ 8,404 $ (22,059 ) $ 13,263 Personal lines (1,617 ) (53,590 ) (39,042 ) SAP underwriting income 6,787 (75,649 ) (25,779 ) GAAP adjustments (3,079 ) 894 4,408 GAAP underwriting inco m 3,708 (74,755 ) (21,371 ) Net investment income 29,515 26,908 23,527 Investment gains (losses) 21,985 (4,802 ) 5,705 Equity in earnings of DFSC 295 2,694 1,622 Other 1,578 1,718 2,631 Income (loss) before income taxes $ 57,081 $ (48,237 ) $ 12,114 |
Guaranty Fund and Other Insuran
Guaranty Fund and Other Insurance-Related Assessments | 12 Months Ended |
Dec. 31, 2019 | |
Insurance [Abstract] | |
Guaranty Fund and Other Insurance-Related Assessments | 20 - Guaranty Fund and Other Insurance-Related Assessments Our insurance subsidiaries’ liabilities for guaranty fund and other insurance-related assessments were $1.6 million and $1.9 million at December 31, 2019 and 2018, respectively. These liabilities included $519,462 and $583,361 related to surcharges collected by our insurance subsidiaries on behalf of regulatory authorities for 2019 and 2018, respectively. |
Interim Financial Data
Interim Financial Data | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Interim Financial Data | 21 - Interim Financial Data (unaudited) 2019 First Quarter Secon d Q Thir d Q Fourt h Q Net premiums earned $ 188,073,242 $ 188,763,313 $ 189,821,058 $ 189,420,787 Total revenues 214,713,874 198,788,954 198,009,900 200,938,743 Net losses and loss expenses 123,110,656 131,507,280 130,743,395 121,026,333 Net income 23,023,164 4,788,454 5,186,379 14,153,747 Net earnings per common share: Class A common stock - basic 0.82 0.17 0.19 0.50 Class A common stock - diluted 0.82 0.17 0.18 0.50 Class B common stock - basic and diluted 0.75 0.15 0.16 0.45 2018 Firs t Q Secon d Q Thir d Q Fourt h Q Net premiums earned $ 181,764,580 $ 185,714,110 $ 187,661,705 $ 186,150,478 Total revenues 189,328,278 195,790,028 199,904,180 186,805,834 Net losses and loss expenses 156,583,268 135,753,645 140,726,106 143,395,401 Net (lo ss) (18,178,078 ) (789,855 ) 1,206,356 (14,998,763 ) Net (loss) Class A common stock - basic (0.66 ) (0.03 ) 0.04 (0.53 ) Class A common stock - diluted (0.66 ) (0.03 ) 0.04 (0.53 ) Class B common stock - basic and diluted (0.60 ) (0.03 ) 0.04 (0.50 ) |
Schedule III - Supplementary In
Schedule III - Supplementary Insurance Information | 12 Months Ended |
Dec. 31, 2019 | |
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Abstract] | |
Schedule III - Supplementary Insurance Information | DONEGAL GROUP INC. AND SUBSIDIARIES SCHEDULE III — SUPPLEMENTARY INSURANCE INFORMATION Years Ended December 31, 2019, 2018 and 2017 ($ in thousands) Segment Net Net Net Losses Amortization Other Net Year Ended December 31, 2019 Commercial lines $ 385,465 $ — $ 242,685 $ 62,424 $ 61,631 $ 404,879 Personal lines 370,613 — 263,703 60,019 52,931 347,722 Investments — 29,515 — — — — $ 756,078 $ 29,515 $ 506,388 $ 122,443 $ 114,562 $ 752,601 Year Ended December 31, 2018 Commercial lines $ 337,924 $ — $ 246,048 $ 55,143 $ 51,635 $ 349,895 Personal lines 403,367 — 330,410 65,821 61,635 394,121 Investments — 26,908 — — — — $ 741,291 $ 26,908 $ 576,458 $ 120,964 $ 113,270 $ 744,016 Year Ended December 31, 2017 Commercial lines $ 318,391 $ — $ 197,344 $ 52,149 $ 52,817 $ 329,116 Personal lines 384,124 — 289,924 62,916 63,721 400,023 Investments — 23,527 — — — — $ 702,515 $ 23,527 $ 487,268 $ 115,065 $ 116,538 $ 729,139 At December 31, Segment Deferred Liability Unearned Other Policy 2019 Commercial lines $ 30,947 $ 582,682 $ 266,297 $ — Personal lines 28,338 286,992 243,850 — Investments — — — — $ 59,285 $ 869,674 $ 510,147 $ — 2018 Commercial lines $ 27,762 $ 518,127 $ 231,990 $ — Personal lines 32,853 296,538 274,539 — Investments — — — — $ 60,615 $ 814,665 $ 506,529 $ — |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Organization and Business | Organization and Business Donegal Mutual Insurance Company (“Donegal Mutual”) organized us as an insurance holding company on August 26, 1986 Mid-Atlantic, Until March 8, 2019, we also owned 48.2% of the outstanding stock of Donegal Financial Services Corporation (“DFSC”), a grandfathered unitary savings and loan holding company that owned Union Community Bank (“UCB”), a state savings bank. Donegal Mutual owned the remaining 51.8% of the outstanding stock of DFSC. We have three segments: our investment function, our commercial lines of insurance and our personal lines of insurance. The commercial lines products of our insurance subsidiaries consist primarily of commercial automobile, commercial multi-peril and workers’ compensation policies. The personal lines products of our insurance subsidiaries consist primarily of homeowners and private passenger automobile policies. At December 31, 2019, Donegal Mutual held approximately 43% of our outstanding Class A common stock and approximately 84% of our outstanding Class B common stock. This ownership provides Donegal Mutual with approximately 71% 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, our insurance subsidiaries and Donegal Mutual 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. In addition, Donegal Mutual has a 100% quota-share reinsurance agreement with Southern Mutual Insurance Company, or Southern Mutual. Donegal Mutual places its assumed business from Southern Mutual into the underwriting pool. 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 an entire personal lines or commercial lines account. Distinctions within the products of Donegal Mutual and our insurance subsidiaries generally relate to specific risk profiles targeted within similar classes of business, such as preferred tier versus standard tier products, but we do not allocate all of the standard risk gradients to one company. Therefore, the underwriting profitability of the business the individual companies write directly will vary. However, as 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 pool. Pooled business represents the predominant percentage of the net underwriting activity of both Donegal Mutual and Atlantic States. We refer to Note 3 - 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 $260,000 of these costs in 2019 and had an accrual of approximately $ 130,000 We and Donegal Mutual sold DFSC to Northwest , 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 2019. This transaction represented the culmination of a banking strategy that began with the formation of DFSC in 2000. Effective December 1, 2019, our insurance subsidiaries Le Mars Insurance Company (“Le Mars”) and Sheboygan Falls Insurance Company (“Sheboygan Falls”) merged with and into Atlantic States (the “Mergers”). As a result of the Mergers, the separate corporate existences of Le Mars and Sheboygan Falls ceased and Atlantic States continued as the surviving insurance company. Atlantic States will place the business of Le Mars and Sheboygan Falls, as their policies renew subsequent to the effective date of the Mergers, into the underwriting pool. |
Basis of Consolidation | Basis of Consolidation Our consolidated financial statements, which we have prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”), include our accounts and those of our wholly owned subsidiaries. We have eliminated all significant inter-company accounts and transactions in consolidation. The terms “we,” “us,” “our” or the “Company” as we use them in the notes to our consolidated financial statements refer to the consolidated entity. |
Use of Estimates | Use of Estimates In preparing our consolidated financial statements, our management makes estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the balance sheet and revenues and expenses for the period then ended. Actual results could differ significantly from those estimates. We make estimates and assumptions that could have a significant effect on amounts and disclosures we report in our consolidated financial statements. The most significant estimates relate to our insurance subsidiaries’ reserves for property and casualty insurance unpaid losses and loss expenses. While we believe our estimates and the estimates of our insurance subsidiaries are appropriate, the ultimate amounts may differ from the estimates provided. We regularly review our methods for making these estimates as well as the continuing appropriateness of the estimated amounts, and we reflect any adjustment we consider necessary in our current results of operations. |
Reclassification | Reclassification We have made certain reclassifications in our prior period financial statements to conform to the current year presentation. |
Investments | Investments We classify our debt securities into the following categories: Held to Maturity - Debt securities that we have the positive intent and ability to hold to maturity; reported at amortized cost. Available for Sale - Debt securities not classified as held to maturity; reported at fair value, with unrealized gains and losses excluded from income and reported as a separate component of stockholders’ equity (net of tax effects). Short-term investments are carried at amortized cost, which approximates fair value. 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, beginning January 1, 2018, 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 an 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. 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, company or geographic events that have negatively impacted the value of a security and rating agency downgrades. 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 investment gains and losses using the specific identification method. We amortize premiums and discounts for mortgage-backed debt securities using anticipated prepayments. |
Fair Values of Financial Instruments | Fair Values of Financial Instruments We use the following methods and assumptions in estimating our fair value disclosures: Investments - We present our investments in available-for-sale Cash and Short-Term Investments - The carrying amounts we report in the balance sheet for these instruments approximate their fair values. Premiums and Reinsurance Receivables and Payables - The carrying amounts we report in the balance sheet for these instruments related to premiums and paid losses and loss expenses approximate their fair values. Subordinated Debentures - The carrying amounts we report in the balance sheet for these instruments approximate their fair values. |
Revenue Recognition | Revenue Recognition Our insurance subsidiaries recognize insurance premiums as income over the terms of the policies they issue. Our insurance subsidiaries calculate unearned premiums on a daily pro-rata |
Policy Acquisition Costs | Policy Acquisition Costs We defer our insurance subsidiaries’ policy acquisition costs, consisting primarily of commissions, premium taxes and certain other underwriting costs, reduced by ceding commissions, related directly to the successful acquisition of new or renewal insurance contracts. We amortize these deferred policy acquisition costs over the period in which our insurance subsidiaries earn the premiums. The method we follow in computing deferred policy acquisition costs limits the amount of such deferred costs to their estimated realizable value, which gives effect to the premium to be earned, related investment income, losses and loss expenses and certain other costs we expect to incur as our insurance subsidiaries earn the premium. Estimates in the calculation of policy acquisition costs have not shown material variability because of uncertainties in applying accounting principles or as a result of sensitivities to changes in key assumptions. |
Property and Equipment | Property and Equipment We report property and equipment at depreciated cost that we compute using the straight-line method based upon estimated useful lives of the assets. |
Losses and Loss Expenses | Losses and Loss Expenses Liabilities for losses and loss expenses are estimates at a given point in time of the amounts an insurer expects to pay with respect to incurred policyholder claims based on facts and circumstances the insurer knows at that point in time. At the time of establishing its estimates, an insurer recognizes that its ultimate liability for losses and loss expenses will exceed or be less than such estimates. Our insurance subsidiaries base their estimates of liabilities for losses and loss expenses on assumptions as to future loss trends, expected claims severity, judicial theories of liability and other factors. However, during the loss adjustment period, our insurance subsidiaries may learn additional facts regarding individual claims, and, consequently, it often becomes necessary for our insurance subsidiaries to refine and adjust their estimates for these liabilities. We reflect any adjustments to the liabilities for losses and loss expenses of our insurance subsidiaries in our consolidated results of operations in the period in which our insurance subsidiaries make adjustments to their estimates. Our insurance subsidiaries maintain liabilities for the payment of losses and loss expenses with respect to both reported and unreported claims. Our insurance subsidiaries establish these liabilities for the purpose of covering the ultimate costs of settling all losses, including investigation and litigation costs. Our insurance subsidiaries base the amount of their liability for reported losses primarily upon a case-by-case Reserve estimates can change over time because of unexpected changes in assumptions related to our insurance subsidiaries’ external environment and, to a lesser extent, assumptions related to our insurance subsidiaries’ internal operations. For example, our insurance subsidiaries have experienced an increase in claims severity and a lengthening of the claim settlement periods on bodily injury claims during the past several years. These trend changes give rise to greater uncertainty as to the pattern of future loss settlements on bodily injury claims. Related uncertainties regarding future trends include the rate of plaintiff attorney involvement in claims and the cost of medical technologies and procedures. Assumptions related to our insurance subsidiaries’ external environment include the absence of significant changes in tort law and the legal environment that increase liability exposure, consistency in judicial interpretations of insurance coverage and policy provisions and the rate of loss cost inflation. Internal assumptions include consistency in the recording of premium and loss statistics, consistency in the recording of claims, payment and case reserving methodology, accurate measurement of the impact of rate changes and changes in policy provisions, consistency in the quality and characteristics of business written within a given line of business and consistency in reinsurance coverage and collectability of reinsured losses, among other items. To the extent our insurance subsidiaries determine that underlying factors impacting their assumptions have changed, our insurance subsidiaries make adjustments in their reserves that they consider appropriate for such changes. Accordingly, our insurance subsidiaries’ ultimate liability for unpaid losses and loss expenses will likely differ from the amount recorded. Our insurance subsidiaries seek to enhance their underwriting results by carefully selecting the product lines they underwrite. Our insurance subsidiaries’ personal lines products primarily include standard and preferred risks in private passenger automobile and homeowners lines. Our insurance subsidiaries’ commercial lines products primarily include business offices, wholesalers, service providers, contractors, artisans and light manufacturing operations. Our insurance subsidiaries have limited exposure to asbestos and other environmental liabilities. Our insurance subsidiaries write no medical malpractice liability risks. |
Income Taxes | Income Taxes We currently file a consolidated federal income tax return that includes us and our insurance subsidiaries. We account for income taxes using the asset and liability method. The objective of the asset and liability method is to establish deferred tax assets and liabilities for the temporary differences between the financial reporting basis and the tax basis of our assets and liabilities at enacted tax rates we expect to be in effect when we realize or settle such amounts. |
Credit Risk | Credit Risk Our objective is to earn competitive returns by investing in a diversified portfolio of securities. Our portfolio of fixed maturity securities and, to a lesser extent, short-term investments is subject to credit risk. We define this risk as the potential loss in fair value resulting from adverse changes in the borrower’s ability to repay its debt to us. We manage this risk by performing an analysis of prospective investments and through regular reviews of our portfolio by our investment personnel. We also limit the amount of our total investment portfolio that we invest in any one security. Our insurance subsidiaries provide property and liability insurance coverages through independent insurance agencies located throughout their operating areas. Our insurance subsidiaries bill the majority of this business directly to their policyholders, although our insurance subsidiaries bill a portion of their commercial business through their agents, to whom they extend credit in the normal course of business. Our insurance subsidiaries have reinsurance agreements with Donegal Mutual and with a number of major unaffiliated reinsurers. |
Reinsurance Accounting and Reporting | Reinsurance Accounting and Reporting Our insurance subsidiaries rely upon reinsurance agreements to limit their maximum net loss from large single risks or risks in concentrated areas and to increase their capacity to write insurance. Reinsurance does not relieve our insurance subsidiaries from liability to their respective policyholders. To the extent that a reinsurer cannot pay losses for which it is liable under the terms of a reinsurance agreement with one or more of our insurance subsidiaries, our insurance subsidiaries retain continued liability for such losses. However, in an effort to reduce the risk of non-payment, A- A- |
Stock-Based Compensation | Stock-Based Compensation We measure all share-based payments to our directors and the directors and employees of our subsidiaries and affiliates, including grants of stock options, using a fair-value-based method and record such expense in our results of operations. In determining the expense we record for stock options we grant to our directors and the 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, expected term, dividend yield and expected volatility. In 2019, 2018 and 2017, we realized $ 64,765 25,938 873,515 |
Earnings per Share | Earnings Per Share We calculate basic earnings per share by dividing net income by the weighted-average number of common shares outstanding for the period. Diluted earnings per share reflects the dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. We have two classes of common stock, which we refer to as Class A common stock and Class B common stock. Our Class A common stock is entitled to the declaration and payment of cash dividends that are at least 10 two-class two-class |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill represents the excess of the purchase price over the underlying fair value of acquired entities. When completing acquisitions, we seek also to identify separately identifiable intangible assets that we have acquired. We assess goodwill and intangible assets with an indefinite useful life for impairment annually. We also assess goodwill and other intangible assets for impairment upon the occurrence of certain events. In making our assessment, we consider a number of factors including operating results, business plans, economic projections, anticipated future cash flows and current market data. Inherent uncertainties exist with respect to these factors and to our judgment in applying them when we make our assessment. Impairment of goodwill and other intangible assets could result from changes in economic and operating conditions in future periods. |
Impact of New Accounting Standards | In January 2016, the FASB issued guidance that generally requires entities to measure equity investments at fair value and recognize changes in fair value in their results of operations. This guidance also simplifies the impairment assessment of equity investments without readily determinable fair values by requiring entities to perform a qualitative assessment to identify impairment. The FASB issued other disclosure and presentation improvements related to financial instruments within the guidance. The guidance was effective for annual and interim reporting periods beginning after December 15, 2017. As a result of the adoption of this guidance on January 1, 2018, we transferred $4.9 million of net unrealized gains from accumulated other comprehensive income (“AOCI”) to retained earnings. We recognized $8.9 million of unrealized of unrealized unrealized unrealized 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 was effective for annual and interim reporting periods beginning after December 15, 2018 and permitted 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 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 early adopted this guidance in 2019. The adoption of this guidance did not 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. We early adopted this guidance in 2019. 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. 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. In November 2019, the FASB issued guidance that delays the effective date for “smaller reporting companies,” as defined in Item 10(f)(1) of Regulation S-K, |
Transactions with Affiliates (T
Transactions with Affiliates (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text Block [Abstract] | |
Schedule of Reinsurance Atlantic States Ceded to Pool | The following amounts represent reinsurance Atlantic States ceded to the pool during 2019, 2018 and 2017: 2019 2018 2017 Premiums earned $ 218,642,984 $ 212,928,238 $ 200,752,599 Losses and loss expenses 173,238,503 159,495,489 140,015,950 Prepaid reinsurance premiums 116,189,929 106,224,424 103,991,861 Liability for losses and loss expenses 183,326,589 158,081,925 136,786,070 |
Schedule of Reinsurance Atlantic States Assumed from Pool | The following amounts represent reinsurance Atlantic States assumed from the pool during 2019, 2018 and 2017: 2019 2018 2017 Premiums earned $ 479,835,362 $ 473,512,781 $ 451,470,894 Losses and loss expenses 309,852,141 335,789,280 289,503,373 Unearned premiums 237,106,338 231,958,181 228,988,598 Liability for losses and loss expenses 322,658,731 303,546,744 252,263,547 |
Schedule of Reinsurance Ceded to Donegal Mutual Pursuant to these Quota-Share Reinsurance Agreements | The following amounts represent reinsurance ceded to Donegal Mutual pursuant to these quota-share reinsurance agreements during 2019, 2018 and 2017: 2019 2018 2017 Premiums earned $ 42,079,112 $ 42,813,929 $ 42,578,047 Losses and loss expenses 19,617,787 23,175,456 24,978,631 Prepaid reinsurance premiums 19,217,849 19,047,084 19,827,115 Liability for losses and loss expenses 36,597,834 38,434,078 36,396,109 |
Schedule of Insurance Subsidiaries Ceded to Donegal Mutual Pursuant to these Reinsurance Agreements | The following amounts represent reinsurance that our insurance subsidiaries ceded to Donegal Mutual pursuant to these reinsurance agreements during 2019, 2018 and 2017: 2019 2018 2017 Premiums earned $ 14,404,636 $ 19,190,067 $ 17,215,273 Losses and loss expenses 13,769,736 12,899,927 8,953,411 Liability for losses and loss expenses 3,149,907 4,847,176 3,399,207 |
Schedule of Affiliated Reinsurance Transactions on Net Premiums Our Insurance Subsidiaries Earned | The following amounts represent the effect of affiliated reinsurance transactions on net premiums our insurance subsidiaries earned during 2019, 2018 and 2017: 2019 2018 2017 Assumed $ 479,835,362 $ 473,512,781 $ 451,470,623 Ceded (275,126,732 ) (274,932,234 ) (260,545,919 ) Net $ 204,708,630 $ 198,580,547 $ 190,924,704 |
Schedule of Reinsurance Transactions on Net Losses and Loss Expenses Our Insurance Subsidiaries Incurred | The following amounts represent the effect of affiliated reinsurance transactions on net losses and loss expenses our insurance subsidiaries incurred during 2019, 2018 and 2017: 2019 2018 2017 Assumed $ 309,844,705 $ 335,684,463 $ 288,813,105 Ceded (206,626,026 ) (195,570,872 ) (173,947,992 ) Net $ 103,218,679 $ 140,113,591 $ 114,865,113 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 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 December 31, 2019 and 2018 are as follows: 2019 Held to Maturity Amortized Cost Gross Gross Estimated Fair U.S. Treasury securities and obligations of U.S. government corporations and agencies $ 82,916,052 $ 1,803,230 $ 68,560 $ 84,650,722 Obligations of states and political subdivisions 204,634,486 14,236,736 288,174 218,583,048 Corporate securities 156,398,001 8,274,912 333,166 164,339,747 Mortgage-backed securities 32,145,243 611,641 16,057 32,740,827 Totals $ 476,093,782 $ 24,926,519 $ 705,957 $ 500,314,344 2019 Available for Sale Amortized Cost Gross Gross Estimated Fair U.S. Treasury securities and obligations of U.S. government corporations and agencies $ 19,302,056 $ 81,773 $ 19,370 $ 19,364,459 Obligations of states and political subdivisions 55,162,046 1,641,171 6,929 56,796,288 Corporate securities 154,946,586 4,477,035 180,312 159,243,309 Mortgage-backed securities 327,428,590 2,856,820 737,663 329,547,747 Totals $ 556,839,278 $ 9,056,799 $ 944,274 $ 564,951,803 2018 Held to Maturity Amortized Cost Gross Gross Estimated Fair U.S. Treasury securities and obligations of U.S. government corporations and agencies $ 76,222,306 $ 174,904 $ 1,086,613 $ 75,310,597 Obligations of states and political subdivisions 159,292,158 8,236,804 704,104 166,824,858 Corporate securities 127,010,071 396,197 4,391,451 123,014,817 Mortgage-backed securities 40,273,983 64,318 450,277 39,888,024 Totals $ 402,798,518 $ 8,872,223 $ 6,632,445 $ 405,038,296 2018 Available for Sale Amortized Cost Gross Gross Estimated Fair U.S. Treasury securities and obligations of U.S. government corporations and agencies $ 45,188,053 $ 25,241 $ 1,003,365 $ 44,209,929 Obligations of states and political subdivisions 73,760,836 1,762,127 306,994 75,215,969 Corporate securities 140,688,937 203,393 3,059,185 137,833,145 Mortgage-backed securities 275,474,625 148,967 6,324,331 269,299,261 Totals $ 535,112,451 $ 2,139,728 $ 10,693,875 $ 526,558,304 |
Summary of Amortized Cost and Estimated Fair Value of Fixed Maturities by Contractual Maturity | Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Amortized Cost Estimated Fair Held to maturity Due in one year or less $ 16,132,891 $ 16,205,362 Due after one year through five years 73,727,277 76,542,800 Due after five years through ten years 182,428,771 191,642,042 Due after ten years 171,659,600 183,183,313 Mortgage-backed securities 32,145,243 32,740,827 Total held to maturity $ 476,093,782 $ 500,314,344 Available for sale Due in one year or less $ 12,943,726 $ 13,075,792 Due after one year through five years 89,684,400 91,992,458 Due after five years through ten years 112,308,452 115,407,525 Due after ten years 14,474,110 14,928,281 Mortgage-backed securities 327,428,590 329,547,747 Total available for sale $ 556,839,278 $ 564,951,803 |
Summary of Cost and Estimated Fair Values of Equity Securities | The cost and estimated fair values of our equity securities at December 31, 2019 were as follows: Cost Gross Gains Gross Losses Estimated Fair Equity securities $ 43,419,136 $ 12,179,912 $ 121,492 $ 55,477,556 The cost and estimated fair values of our equity securities at December 31, 2018 were as follows: Cost Gross Gains Gross Losses Estimated Fair Equity securities $ 40,942,716 $ 4,817,917 $ 2,093,624 $ 43,667,009 |
Summary of Net Investment Income, consisting Primarily of Interest and Dividends | We derive d 2019 2018 2017 Fixed maturities $ 29,969,774 $ 27,733,555 $ 26,143,924 Equity securities 1,268,056 1,264,120 999,335 Short-term investments 1,243,104 795,522 407,580 Other 29,251 29,450 33,316 Investment income 32,510,185 29,822,647 27,584,155 Investment expenses (2,995,230 ) (2,914,991 ) (4,056,851 ) Net investment income $ 29,514,955 $ 26,907,656 $ 23,527,304 |
Summary of Gross Investment Gains and Losses before Applicable Income Taxes | We present below gross gains and losses from investments, including those we classified as held to maturity, and the change in the difference between fair value and cost of investments: 2019 2018 2017 Gross gains: Fixed maturities $ 470,983 $ 131,660 $ 168,855 Equity securities 10,471,285 1,890,762 6,197,253 Investment in affiliate 12,662,147 23,604,415 2,022,422 6,366,108 Gross losses: Fixed maturities 323,746 630,904 98,723 Equity securities 1,296,052 6,193,027 562,130 1,619,798 6,823,931 660,853 Net investment gains (losses) $ 21,984,617 $ (4,801,509 ) $ 5,705,255 Change in difference between fair value and cost of investments: Fixed maturities $ 38,647,456 $ (20,641,433 ) $ 2,335,578 Equity securities 9,334,127 (3,501,853 ) 1,569,999 Totals $ 47,981,583 $ (24,143,286 ) $ 3,905,577 |
Summary of Fixed Maturities with Unrealized Losses | We held fixed maturities with unrealized losses representing declines that we considered temporary at December 31, 2019 as follows: Less than 12 months 12 months or longer Fair Value Unrealized Fair Value Unrealized U.S. Treasury securities and obligations of U.S. government corporations and agencies $ 7,461,245 $ 45,688 $ 5,394,735 $ 42,242 Obligations of states and political subdivisions 23,339,340 293,516 2,326,813 1,587 Corporate securities 19,362,346 263,280 18,803,546 250,198 Mortgage-backed securities 28,507,123 55,729 74,088,769 697,991 Totals $ 78,670,054 $ 658,213 $ 100,613,863 $ 992,018 We held fixed maturities with unrealized losses representing declines that we considered temporary at December 31, 2018 as follows: Less than 12 months 12 months or longer Fair Value Unrealized Fair Value Unrealized U.S. Treasury securities and obligations of U.S. government corporations and agencies $ 26,342,398 $ 165,774 $ 54,900,027 $ 1,924,204 Obligations of states and political subdivisions 28,321,962 477,357 21,559,520 533,741 Corporate securities 149,269,854 4,482,870 59,396,885 2,967,766 Mortgage-backed securities 82,593,454 912,616 181,379,875 5,861,992 Totals $ 286,527,668 $ 6,038,617 $ 317,236,307 $ 11,287,703 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 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 Fair Value Measurements Using Fair Value Quoted Prices in Significant Significant (in thousands) U.S. Treasury securities and obligations of U.S. government corporations and agencies $ 19,364,459 $ — $ 19,364,459 $ — Obligations of states and political subdivisions 56,796,288 — 56,796,288 — Corporate securities 159,243,309 — 159,243,309 — Mortgage-backed securities 329,547,747 — 329,547,747 — Equity securities 55,477,556 53,124,368 2,353,188 — Total investments in the fair value hierarchy $ 620,429,359 $ 53,124,368 $ 567,304,991 $ — The following table presents our fair value measurements for our investments in available-for-sale 8 Fair Value Measurements Using Fair Value Quoted Prices Active for Significant Significant U.S. Treasury securities and obligations of U.S. government corporations and agencies $ 44,209,929 $ — $ 44,209,929 $ — Obligations of states and political subdivisions 75,215,969 — 75,215,969 — Corporate securities 137,833,145 — 137,833,145 — Mortgage-backed securities 269,299,261 — 269,299,261 — Equity securities 30,674,835 28,351,110 2,323,725 — Total investments in the fair value hierarchy 557,233,139 28,351,110 528,882,029 — Investment measured at net asset value 12,992,174 — — — Totals $ 570,225,313 $ 28,351,110 $ 528,882,029 $ — |
Deferred Policy Acquisition C_2
Deferred Policy Acquisition Costs (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Insurance [Abstract] | |
Changes in Insurance Subsidiaries' Deferred Policy Acquisition Costs | Changes in our insurance subsidiaries’ deferred policy acquisition costs are as follows: 2019 2018 2017 Balance, January 1 $ 60,615,127 $ 60,289,860 $ 56,309,196 Acquisition costs deferred 121,112,732 121,289,267 119,045,664 Amortization charged to earnings (122,443,000 ) (120,964,000 ) (115,065,000 ) Balance, December 31 $ 59,284,859 $ 60,615,127 $ 60,289,860 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and equipment at December 31, 2019 and 2018 consisted of the following: 2019 2018 Estimated Useful Office equipment $ 8,660,163 $ 10,049,884 3-15 years Automobiles 301,119 448,015 5 years Real estate 4,977,813 4,977,813 5-50 Software 2,065,927 2,843,782 5 years 16,005,022 18,319,494 Accumulated depreciation (11,446,950 ) (13,628,790 ) $ 4,558,072 $ 4,690,704 |
Liability for Losses and Loss_2
Liability for Losses and Loss Expenses (Tables) | 12 Months Ended |
Dec. 31, 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: 2019 2018 2017 Balance at January 1 $ 814,665,224 $ 676,671,727 $ 606,664,590 Less reinsurance recoverable (339,267,525 ) (293,271,257 ) (259,147,147 ) Net balance at January 1 475,397,699 383,400,470 347,517,443 Incurred related to: Current year 519,319,941 540,826,810 480,646,641 Prior years (12,932,277 ) 35,631,610 6,621,413 Total incurred 506,387,664 576,458,420 487,268,054 Paid related to: Current year 278,923,614 308,578,285 288,379,600 Prior years 195,956,327 175,882,906 163,005,427 Total paid 474,879,941 484,461,191 451,385,027 Net balance at December 31 506,905,422 475,397,699 383,400,470 Plus reinsurance recoverable 362,768,427 339,267,525 293,271,257 Balance at December 31 $ 869,673,849 $ 814,665,224 $ 676,671,727 |
Summary of Incurred and Paid Claims Development, Net of Reinsurance and Cumulative Claim Frequency and Total of IBNR Reserves Plus Expected Development on Reported Claims | The following tables present information about incurred and paid claims development as of December 3 1 , 2019 , net of reinsurance, as well as cumulative claim frequency and the total of IBNR reserves plus expected development on reported claims that our insurance subsidiaries included within their net incurred claims amounts. The tables include unaudited information about incurred and paid claims development for the years ended December 31 , 2010 through 2018 , which we present as supplementary information. Personal Automobile At December 31, 2019 Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Year Ended December 31, Accident Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Total IBNR Cumulative Unaudited (dollars and reported claims in thousands) 2010 $ 117,967 $ 117,552 $ 118,562 $ 118,876 $ 118,916 $ 118,587 $ 118,385 $ 118,289 $ 118,314 $ 118,294 $ 27 70 2011 127,929 131,678 132,987 133,229 133,617 133,218 133,145 133,142 133,207 73 75 2012 130,415 133,201 135,592 136,493 136,552 136,463 136,141 136,677 215 69 2013 124,965 130,737 131,594 132,643 132,604 132,934 132,853 175 66 2014 124,426 124,806 124,210 126,200 126,779 126,734 264 71 2015 137,596 139,333 139,181 142,493 142,408 732 70 2016 150,216 153,937 157,516 157,943 2,372 73 2017 166,690 176,728 175,939 4,884 79 2018 186,580 183,358 10,675 80 2019 161,056 28,339 66 Total $ 1,468,469 Personal Automobile Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Year Ended December 31, Accident Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Unaudited (in thousands) 2010 $ 75,889 $ 96,749 $ 107,662 $ 113,243 $ 116,748 $ 117,812 $ 117,978 $ 118,054 $ 118,093 $ 118,119 2011 87,191 110,249 121,621 127,545 131,319 132,479 132,714 132,777 132,835 2012 87,517 111,941 124,652 130,862 133,428 134,581 135,132 136,137 2013 84,241 109,051 120,118 125,946 130,026 131,326 131,642 2014 85,377 104,736 114,893 120,491 123,815 124,926 2015 93,611 116,303 128,395 135,027 139,121 2016 102,433 129,507 143,321 151,159 2017 111,964 142,372 159,879 2018 115,585 150,175 2019 103,101 Total 1,347,094 All outstanding liabilities before 2010, net of reinsurance 719 Liabilities for claims and claims adjustment expenses, net of reinsurance $ 122,094 Homeowners At December 31, 2019 Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Year Ended December 31, Accident Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Total IBNR Cumulative Unaudited (dollars and reported claims in thousands) 2010 $ 60,315 $ 60,729 $ 60,248 $ 59,972 $ 60,355 $ 60,440 $ 60,443 $ 60,542 $ 60,624 $ 60,641 $ — 25 2011 71,256 70,461 70,436 70,381 70,297 70,351 70,479 70,642 70,682 — 27 2012 53,962 54,794 54,468 54,351 54,281 54,381 54,523 54,537 — 19 2013 50,887 51,121 51,122 50,874 50,988 50,971 51,008 — 13 2014 56,916 58,378 57,680 57,332 57,288 57,402 (4 ) 18 2015 63,359 63,925 63,053 63,071 63,099 45 14 2016 62,443 64,064 63,735 63,355 78 13 2017 79,283 79,911 79,305 724 18 2018 81,965 83,385 1,657 19 2019 73,294 6,775 14 Total $ 656,708 Homeowners Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Year Ended December 31, Accident Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Unaudited (in thousands) 2010 $ 47,419 $ 57,334 $ 59,283 $ 59,875 $ 60,239 $ 60,486 $ 60,501 $ 60,525 $ 60,540 $ 60,557 2011 57,588 69,345 70,125 70,351 70,541 70,626 70,648 70,692 70,692 2012 46,566 53,619 54,028 54,298 54,317 54,356 54,557 54,557 2013 40,949 49,410 50,210 50,478 51,043 50,902 50,967 2014 45,823 56,255 56,990 57,195 56,995 57,243 2015 51,885 61,542 62,204 62,590 62,844 2016 50,125 61,145 62,760 63,144 2017 67,077 77,663 78,006 2018 70,385 79,892 2019 58,074 Total 635,976 All outstanding liabilities before 2010, net of reinsurance 30 Liabilities for claims and claims adjustment expenses, net of reinsurance $ 20,762 Commercial Automobile At December 31, 2019 Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Year Ended December 31, Accident Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Total IBNR Cumulative Unaudited (dollars and reported claims in thousands) 2010 $ 19,315 $ 19,913 $ 20,695 $ 21,477 $ 21,490 $ 21,756 $ 21,746 $ 21,713 $ 21,726 $ 21,768 $ 9 7 2011 26,642 27,157 28,570 28,893 29,112 29,107 29,487 29,751 29,542 18 9 2012 26,557 27,720 30,606 31,435 31,278 31,648 31,803 31,896 28 8 2013 32,902 33,749 34,751 35,240 36,404 36,435 36,569 89 9 2014 42,760 44,544 47,326 48,213 49,284 49,168 270 11 2015 46,526 48,323 51,412 54,259 54,517 662 12 2016 54,302 57,353 65,905 67,127 2,134 13 2017 61,484 67,927 67,697 5,149 14 2018 79,307 81,396 11,763 15 2019 88,864 27,764 15 Total $ 528,544 Commercial Automobile Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Year Ended December 31, Accident Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Unaudited (in thousands) 2010 $ 10,778 $ 14,180 $ 16,426 $ 19,030 $ 20,804 $ 21,014 $ 21,482 $ 21,549 $ 21,558 $ 21,559 2011 13,876 19,106 24,267 26,973 28,014 28,758 28,836 29,102 29,474 2012 13,642 20,240 23,718 27,417 29,873 30,402 31,104 31,228 2013 16,306 23,557 26,879 31,053 34,083 36,004 36,106 2014 22,707 31,089 39,436 44,374 47,290 48,418 2015 23,875 35,342 41,678 48,261 51,605 2016 27,033 38,237 48,837 57,237 2017 28,707 40,213 49,703 2018 33,862 47,941 2019 36,948 Total 410,219 All outstanding liabilities before 2010, net of reinsurance 47 Liabilities for claims and claims adjustment expenses, net of reinsurance $ 118,372 Commercial Multi-Peril At December 31, 2019 Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Year Ended December 31, Accident Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Total IBNR Cumulative Unaudited (dollars and reported claims in thousands) 2010 $ 28,745 $ 29,656 $ 29,390 $ 29,169 $ 29,373 $ 29,453 $ 29,463 $ 29,779 $ 29,925 $ 30,105 $ — 6 2011 33,054 35,411 35,942 37,576 37,385 38,270 38,105 38,160 38,434 — 7 2012 29,789 30,716 32,449 34,117 35,755 36,214 36,525 36,876 — 6 2013 35,683 35,679 37,292 37,205 37,981 37,365 37,453 38 6 2014 48,204 50,135 51,843 52,336 53,294 53,116 147 7 2015 42,070 43,874 44,728 45,104 45,873 519 6 2016 43,005 46,988 48,267 48,871 2,015 6 2017 56,185 56,043 56,517 4,604 7 2018 66,265 66,470 10,568 7 2019 71,865 21,633 6 Total $ 485,580 Commercial Multi-Peril Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Year Ended December 31, Accident Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Unaudited (in thousands) 2010 $ 17,007 $ 22,017 $ 24,749 $ 26,832 $ 27,768 $ 28,681 $ 28,906 $ 29,632 $ 29,721 $ 29,923 2011 18,773 24,767 30,286 33,526 36,722 37,759 38,240 38,366 38,413 2012 16,666 23,384 26,634 29,370 33,327 35,331 35,909 36,329 2013 19,875 26,216 29,159 33,614 35,104 36,321 37,333 2014 27,920 35,520 40,936 47,021 50,017 51,615 2015 21,837 29,419 34,323 39,162 42,849 2016 19,660 29,402 34,612 41,193 2017 27,399 36,926 42,691 2018 30,597 42,296 2019 28,210 Total 390,852 All outstanding liabilities before 2010, net of reinsurance 425 Liabilities for claims and claims adjustment expenses, net of reinsurance $ 95,153 Workers’ Compensation At December 31, 2019 Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Year Ended December 31, Accident Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Total IBNR Cumulative Unaudited (dollars and reported claims in thousands) 2010 $ 27,304 $ 27,859 $ 27,010 $ 26,637 $ 26,944 $ 27,121 $ 27,037 $ 26,984 $ 26,801 $ 26,829 $ 37 5 2011 32,490 35,757 36,614 36,369 35,670 35,039 35,194 34,926 35,034 53 6 2012 39,142 39,516 38,827 37,926 37,163 36,468 35,954 35,932 75 6 2013 46,325 47,027 44,289 42,828 42,327 42,555 42,651 187 6 2014 51,508 51,553 49,288 48,537 47,540 47,693 264 6 2015 53,332 49,615 45,991 44,986 43,006 836 6 2016 58,814 49,802 47,883 44,969 1,630 6 2017 60,450 56,351 52,687 3,362 6 2018 62,197 55,291 7,081 6 2019 60,998 19,280 6 Total $ 445,090 Workers’ Compensation Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Year Ended December 31, Accident Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Unaudited (in thousands) 2010 $ 8,066 $ 15,937 $ 21,176 $ 23,137 $ 24,539 $ 25,337 $ 25,804 $ 26,050 $ 26,295 $ 26,301 2011 9,157 21,450 27,517 31,905 32,394 33,067 33,577 33,963 34,109 2012 11,097 22,963 28,812 31,244 33,196 34,177 34,460 34,622 2013 13,052 26,043 32,783 36,351 38,877 39,617 40,361 2014 13,932 28,513 36,284 40,393 42,465 43,866 2015 13,071 27,531 34,192 36,929 37,936 2016 14,709 30,344 37,178 40,570 2017 15,581 31,990 39,684 2018 17,644 31,928 2019 16,939 Total 346,316 All outstanding liabilities before 2010, net of reinsurance 3,261 Liabilities for claims and claims adjustment expenses, net of reinsurance $ 102,035 |
Reconciliation of Net Incurred and Paid Claims Development Tables to Liability for Claims and Claim Adjustment Expenses | The following table presents a reconciliation of the net incurred and paid claims development tables to the liability for claims and claims adjustment expenses in our consolidated balance sheet: At December 31, (in thousands) 2019 Net outstanding liabilities: Personal automobile $ 122,094 Homeowners 20,762 Commercial automobile 118,372 Commercial multi-peril 95,153 Workers ’ 102,035 Other 12,524 470,940 Reinsurance recoverable: Personal automobile $ 119,364 Homeowners 10,216 Commercial automobile 70,973 Commercial multi-peril 58,765 Workers ’ 81,837 Other 7,177 348,332 Unallocated loss adjustment expenses $ 50,402 Gross liability for unpaid losses and loss expenses $ 869,674 |
Supplementary Information about Average Historical Claims Duration | The following table presents supplementary information about average historical claims duration as of December 31, 2019: Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance Years 1 2 3 4 5 6 7 8 9 10 Personal automobile 64.6 % 17.3 % 8.8 % 4.6 % 2.7 % 0.9 % 0.2 % 0.3 % — % — % Homeowners 81.5 15.3 1.5 0.6 0.3 0.2 0.1 — — — Commercial automobile 44.0 18.1 13.3 11.3 6.6 2.5 1.2 0.5 0.7 — Commercial multi-peril 47.8 17.0 10.2 10.0 6.6 3.5 1.6 1.3 0.2 0.7 Workers’ compensation 29.9 31.5 16.3 8.2 4.1 2.5 1.4 0.8 0.7 — |
Borrowings (Tables)
Borrowings (Tables) | 12 Months Ended |
Dec. 31, 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 December 31, 2019. FHLB stock purchased and owned as part of the agreement $ 1,639,200 Collateral pledged, at par (carrying value $36,295,910) 36,370,886 Borrowing capacity currently available 240,569 |
Reinsurance (Tables)
Reinsurance (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Insurance [Abstract] | |
Ceded Reinsurance Transactions with Unaffiliated Reinsurers | The following amounts represent ceded reinsurance transactions with unaffiliated reinsurers during 2019, 2018 and 2017: 2019 2018 2017 Premiums written $ 36,941,997 $ 50,160,604 $ 51,241,267 Premiums earned 39,732,282 51,266,000 49,633,348 Losses and loss expenses 33,615,819 50,652,202 44,575,268 Prepaid reinsurance premiums 7,067,989 10,108,269 11,213,665 Liability for losses and loss expenses 139,694,097 137,904,346 116,689,871 |
Total Ceded Reinsurance Transactions with both Affiliated and Unaffiliated Reinsurers | The following amounts represent total ceded reinsurance transactions with both affiliated and unaffiliated reinsurers during 2019, 2018 and 2017: 2019 2018 2017 Premiums earned $ 314,859,014 $ 326,198,234 $ 310,179,267 Losses and loss expenses 240,241,845 246,223,074 218,523,260 Prepaid reinsurance premiums 142,475,767 135,379,777 135,032,641 Liability for losses and loss expenses 362,768,427 339,267,525 293,271,257 |
Amounts Represent Effect of Reinsurance on Premiums Written | The following amounts represent the effect of reinsurance on premiums written for 2019, 2018 and 2017: 2019 2018 2017 Direct $ 589,572,526 $ 594,078,723 $ 584,007,351 Assumed 485,233,762 476,482,451 466,087,983 Ceded (322,204,999 ) (326,545,370 ) (320,956,412 ) Net premiums written $ 752,601,289 $ 744,015,804 $ 729,138,922 |
Amounts Represent Effect of Reinsurance on Premiums Earned | The following amounts represent the effect of reinsurance on premiums earned for 2019, 2018 and 2017: 2019 2018 2017 Direct $ 591,101,804 $ 593,976,241 $ 561,178,447 Assumed 479,835,610 473,512,866 451,515,575 Ceded (314,859,014 ) (326,198,234 ) (310,179,267 ) Net premiums earned $ 756,078,400 $ 741,290,873 $ 702,514,755 Percentage of assumed premiums earned to net premiums earned 63.5 % 63.9 % 64.3 % |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Provision for Income Tax | Our provision for income tax expense (benefit) for 2019, 2018 and 2017 consisted of the following: 2019 2018 2017 Current federal income tax $ 8,454,358 $ (11,296,704 ) $ (2,139,061 ) Deferred federal income tax 649,928 (4,179,805 ) 7,137,423 Federal income tax expense (benefit) $ 9,104,286 $ (15,476,509 ) $ 4,998,362 Pennsylvania income tax 825,000 — — Income tax expense (benefit) $ 9,929,286 $ (15,476,509 ) $ 4,998,362 |
Reconciliation of Federal Income Tax Rate | The reasons for such difference and the related tax effects are as follows: 2019 201 8 201 7 Income (loss) before income taxes $ 57,081,030 $ (48,236,849 ) $ 12,114,462 Computed “expected” taxes 11,987,016 (10,129,738 ) 4,240,062 Tax-exempt (1,325,197 ) (1,521,090 ) (3,241,530 ) Proration 357,044 405,204 518,948 Effect of tax reform — — 4,752,547 Dividends received deduction (1,913,238 ) (99,726 ) (508,409 ) Net operating loss carryback — (4,210,523 ) — Tax benefit on exercise of options (64,765 ) (25,938 ) (873,515 ) Other, net 236,676 105,302 110,259 Pennsylvania income tax, net of federal benefit 651,750 — — Income tax expense (benefit) $ 9,929,286 $ (15,476,509 ) $ 4,998,362 |
Schedule of Deferred Tax Assets and Deferred Tax Liabilities | The tax effects of temporary differences that give rise to significant portions of our deferred tax assets and deferred tax liabilities at December 31, 2019 and 2018 are as follows: 2019 2018 Deferred tax assets: Unearned premium $ 15,482,366 $ 15,634,433 Loss reserves 7,820,683 7,644,415 Net operating loss carryforward 200,942 3,090,010 Net state operating loss carryforward—DGI Parent 7,519,991 8,070,196 Net unrealized losses — 3,782,145 Other 2,603,155 2,517,791 Total gross deferred tax assets 33,627,137 40,738,990 Less valuation allowance (7,538,024 ) (8,334,663 ) Net deferred tax assets 26,089,113 32,404,327 Deferred tax liabilities: Deferred policy acquisition costs 12,449,820 12,729,176 Loss reserve transition adjustment 1,733,056 2,339,068 Other 3,391,926 4,266,328 Total gross deferred tax liabilities 17,574,802 19,334,572 Net deferred tax asset $ 8,514,311 $ 13,069,755 |
Stock Compensation Plans (Table
Stock Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Postemployment Benefits [Abstract] | |
Information Regarding Activity in Stock Option Plans | Information regarding activity in our stock option plans follows: Number of Weighted- Per Share Outstanding at December 31, 2016 9,338,648 $ 14.95 Granted - 2017 943,000 17.58 Exercised - 2017 (924,019 ) 14.45 Forfeited - 2017 (93,167 ) 15.43 Outstanding at December 31, 2017 9,264,462 15.26 Granted - 2018 1,063,000 13.69 Exercised - 2018 (79,961 ) 13.74 Forfeited - 2018 (222,639 ) 16.00 Outstanding at December 31, 2018 10,024,862 15.09 Granted - 2019 1,045,400 14.97 Exercised - 2019 (217,498 ) 13.23 Forfeited - 2019 (416,774 ) 15.88 Outstanding at December 31, 2019 10,435,990 $ 15.09 Exercisable at: December 31, 2017 6,946,677 $ 14.90 December 31, 2018 7,936,659 $ 15.02 December 31, 2019 8,449,389 $ 15.13 |
Summary of Information about Stock Options Outstanding | The following table summarizes information about stock options outstanding at December 31, 201 9 Grant Date Exercise Number of Weighted-Average Number of July 27, 2011 $ 12.50 907,101 2.0 years 907,101 December 20, 2012 14.50 1,009,819 3.0 years 1,009,819 December 19, 2013 15.90 1,991,804 4.0 years 1,991,804 December 18, 2014 15.80 1,270,581 5.0 years 1,270,581 December 17, 2015 13.64 1,191,845 1.0 years 1,191,845 December 15, 2016 16.48 1,202,808 2.0 years 1,202,808 December 21, 2017 17.60 799,832 3.0 years 533,168 December 20, 2018 13.69 1,016,800 4.0 years 338,930 March 4, 2019 13.51 10,000 4.2 years 3,333 December 19 9 14.98 1,035,400 5.0 years — Total 10,435,990 8,449,389 |
Summary of Plan Activity | A summary of plan activity follows: Shares Issued Price Shares January 1, 2017 13.76 18,512 July 1, 2017 13.52 25,155 January 1, 2018 13.34 20,662 July 1, 2018 11.57 27,802 January 1, 2019 11.60 24,834 July 1, 2019 12.24 22,926 |
Statutory Net Income, Capital_2
Statutory Net Income, Capital and Surplus and Dividend Restrictions (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Schedule Of Net Income Capital And Surplus And Dividend Restrictions | The following table presents selected information, as filed with state insurance regulatory authorities, for our insurance subsidiaries as determined in accordance with accounting practices prescribed or permitted by such insurance regulatory authorities: 2019 2018 2017 Atlantic States: Statutory capital and surplus $ 259,030,868 $ 230,736,313 $ 260,428,754 Statutory unassigned surplus 155,909,822 140,713,118 172,709,955 Statutory net income 22,282,231 (23,458,516 ) (2,037,672 ) Southern: Statutory capital and surplus 54,405,568 45,355,785 54,503,581 Statutory unassigned (deficit) surplus (2,375,794 ) (6,346,270 ) 2,914,532 Statutory net income 5,061,477 (9,822,457 ) (3,375,434 ) Peninsula: Statutory capital and surplus 39,244,570 32,717,996 39,396,818 Statutory unassigned surplus 20,936,805 14,415,949 21,148,253 Statutory net income 7,360,378 (6,316,130 ) (841,119 ) MICO: Statutory capital and surplus 65,768,590 55,708,442 52,796,379 Statutory unassigned surplus 38,910,008 28,949,919 26,162,540 Statutory net income 9,976,610 6,350,686 7,931,774 |
Reconciliation of Statutory F_2
Reconciliation of Statutory Filings to Amounts Reported in the Consolidated Financial Statements (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Text Block [Abstract] | |
Reconciliations of Statutory Net Income and Capital and Surplus | Reconciliations of statutory net income income Year Ended December 31, 2019 2018 2017 Statutory net income (loss) of insurance subsidiaries $ 44,680,696 $ (33,246,417 ) $ 1,677,549 Increases (decreases): Deferred policy acquisition costs (1,330,268 ) 325,267 3,980,664 Deferred federal income taxes 639,284 4,179,807 1,334,410 Salvage and subrogation recoverable 207,000 2,061,600 1,199,200 Consolidating eliminations and adjustments (11,048,314 ) (16,013,971 ) (13,534,428 ) Parent-only net income 14,003,346 9,933,374 12,458,705 Net income (loss) $ 47,151,744 $ (32,760,340 ) $ 7,116,100 December 31, 2019 2018 2017 Statutory capital and surplus of insurance subsidiaries $ 418,449,596 $ 364,518,536 $ 407,125,532 Increases (decreases): Deferred policy acquisition costs 59,284,859 60,615,127 60,289,860 Deferred federal income taxes (15,477,843 ) (20,094,374 ) (14,422,511 ) Salvage and subrogation recoverable 20,245,200 20,038,200 17,976,600 Non-admitted 1,727,754 1,904,083 1,960,089 Fixed maturities (326,795 ) (16,528,367 ) (8,748,140 ) Parent-only equity and other adjustments (32,887,252 ) (11,583,304 ) (15,485,326 ) Stockholders’ equity $ 451,015,519 $ 398,869,901 $ 448,696,104 |
Supplementary Cash Flow Infor_2
Supplementary Cash Flow Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Supplemental Cash Flow Elements [Abstract] | |
Net Income Taxes and Interest Paid | The following table reflects net income taxes we (recovered) paid and interest we paid during 2019, 2018 and 2017: 2019 2018 2017 Income taxes $ (9,827,433 ) $ (3,290,247 ) $ 3,050,000 Interest 321,585 1,280,352 1,341,706 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Summary of Reconciliation of Numerators and Denominators Used in Basic and Diluted Per Share Computations | We present below a reconciliation of the numerators and denominators we used in the basic and diluted per share computations for our Class A common stock: Year Ended December 31, (in thousands, except per share amounts) 2019 2018 2017 Basic earnings (loss) per share: Numerator: Allocation of net income (loss) $ 38,718 $ (26,691 ) $ 5,879 Denominator: Weighted-average shares outstanding 22,986 22,705 21,799 Basic earnings (loss) per share $ 1.68 $ (1.18 ) $ 0.27 Diluted earnings (loss) per share: Numerator: Allocation of net income (loss) $ 38,718 $ (26,691 ) $ 5,879 Denominator: Number of shares used in basic computation 22,986 22,705 21,799 Weighted-average effect of dilutive securities Add: Director and employee stock options 211 — 843 Number of shares used in per share computations 23,197 22,705 22,642 Diluted earnings (loss) per share $ 1.67 $ (1.18 ) $ 0.26 We used the following information in the basic and diluted per share computations for our Class B common stock: Year Ended December 31, (in thousands, except per share amounts) 2019 2018 2017 Basic and diluted earnings (loss) per share: Numerator: Allocation of net income (loss) $ 8,434 $ (6,069 ) $ 1,237 Denominator: Weighted-average shares outstanding 5,577 5,577 5,577 Basic and diluted earnings (loss) per share $ 1.51 $ (1.09 ) $ 0.22 |
Condensed Financial Informati_2
Condensed Financial Information of Parent Company (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Condensed Financial Information Disclosure [Abstract] | |
Summary of Condensed Balance Sheets | Condensed Balance Sheets (in thousands) December 31, 2019 2018 Assets Investment in subsidiaries/affiliates (equity method) $ 489,657 $ 465,030 Short-term investments 2,502 29 Cash 2,350 1,542 Property and equipment 944 928 Other — — Total assets $ 495,453 $ 467,529 Liabilities and Stockholders’ Equity Liabilities Cash dividends declared to stockholders $ 4,075 $ 3,948 Borrowings under lines of credit 35,000 60,000 Other 5,362 4,711 Total liabilities 44,437 68,659 Stockholders’ equity 451,016 398,870 Total liabilities and stockholders’ equit y $ 495,453 $ 467,529 |
Condensed Statements of (Loss) Income and Comprehensive (Loss) Income | Condensed Statements of Income Income (in thousands) Year Ended December 31, 2019 2018 2017 Statements of Income Revenues Dividends from subsidiaries $ 4,000 $ 11,000 $ 13,000 Realized investment gains 12,378 — — Other 1,009 3,196 2,131 Total revenues 17,387 14,196 15,131 Expenses Operating expenses 1,420 1,628 1,433 Interest 1,327 2,224 1,929 Total expenses 2,747 3,852 3,362 Income before income tax expense (benefit) and equity in undistributed net income (loss) 14,640 10,344 11,769 Income tax expense (benefit) 636 411 (690 ) Income before equity in undistributed net income 14,004 9,933 12,459 Equity in undistributed net income 33,148 (42,693 ) (5,343 ) Net income $ 47,152 $ (32,760 ) $ 7,116 Statements of Comprehensive Income Net income $ 47,152 $ (32,760 ) $ 7,116 Other comprehensive income (loss) , Unrealized gain (loss) - 14,732 (6,625 ) 46 Other comprehensive income (loss), net of tax 14,732 (6,625 ) 46 Comprehensive income (loss ) $ 61,884 $ (39,385 ) $ 7,162 |
Summary of Condensed Statements of Cash Flows | Condensed Statements of Cash Flows (in thousands) Year Ended December 31, 2019 2018 2017 Cash flows from operating activities: Net income (loss) $ 47,152 $ (32,760 ) $ 7,116 Adjustments: Equity in undistributed net (income) loss of subsidiaries (33,148 ) 42,694 5,343 Realized investment gains (12,378 ) — — Dividends received from DFSC — — 1,037 Other 490 2,531 1,011 Net adjustments (45,036 ) 45,225 7,391 Net cash provided 2,116 12,465 14,507 Cash flows from investing activities: Net (purchases) sale of short-term investments (2,473 ) — 1 Net purchase of property and equipment (150 ) (106 ) (788 ) Sale of DFSC 33,923 — — Sale of equity securities - available for sale 20,287 — — Investment in subsidiaries (18,283 ) (2,644 ) (2,992 ) Other — (1 ) (1 ) Net cash received (used) 33,304 (2,751 ) (3,780 ) Cash flows from financing activities: Cash dividends paid (16,093 ) (15,659 ) (14,821 ) Issuance of common stock 6,481 3,250 15,511 Payments on lines of credit (25,000 ) — (10,000 ) Borrowings under lines of credit — 1,000 — Net cash used (34,612 ) (11,409 ) (9,310 ) Net change in cash 808 (1,695 ) 1,417 Cash at beginning of year 1,542 3,237 1,820 Cash at end of year $ 2,350 $ 1,542 $ 3,237 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Summary of Financial Data by Segment | Financial data by segment is as follows: 2019 2018 2017 (in thousands) Revenues: Premiums earned: Commercial lines $ 385,465 $ 337,924 $ 318,391 Personal lines 370,613 403,367 384,124 GAAP premiums earned 756,078 741,291 702,515 Net investment income 29,515 26,908 23,527 Investment gains (losses) 21,985 (4,802 ) 5,705 Equity in earnings of DFSC 295 2,694 1,622 Other 4,578 5,737 5,658 Total revenues $ 812,451 $ 771,828 $ 739,027 2019 2018 2017 (in thousands) Income (loss) before income taxes: Underwriting income (loss): Commercial lines $ 8,404 $ (22,059 ) $ 13,263 Personal lines (1,617 ) (53,590 ) (39,042 ) SAP underwriting income 6,787 (75,649 ) (25,779 ) GAAP adjustments (3,079 ) 894 4,408 GAAP underwriting inco m 3,708 (74,755 ) (21,371 ) Net investment income 29,515 26,908 23,527 Investment gains (losses) 21,985 (4,802 ) 5,705 Equity in earnings of DFSC 295 2,694 1,622 Other 1,578 1,718 2,631 Income (loss) before income taxes $ 57,081 $ (48,237 ) $ 12,114 |
Interim Financial Data (Tables)
Interim Financial Data (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of Interim Financial Data | 2019 First Quarter Secon d Q Thir d Q Fourt h Q Net premiums earned $ 188,073,242 $ 188,763,313 $ 189,821,058 $ 189,420,787 Total revenues 214,713,874 198,788,954 198,009,900 200,938,743 Net losses and loss expenses 123,110,656 131,507,280 130,743,395 121,026,333 Net income 23,023,164 4,788,454 5,186,379 14,153,747 Net earnings per common share: Class A common stock - basic 0.82 0.17 0.19 0.50 Class A common stock - diluted 0.82 0.17 0.18 0.50 Class B common stock - basic and diluted 0.75 0.15 0.16 0.45 2018 Firs t Q Secon d Q Thir d Q Fourt h Q Net premiums earned $ 181,764,580 $ 185,714,110 $ 187,661,705 $ 186,150,478 Total revenues 189,328,278 195,790,028 199,904,180 186,805,834 Net losses and loss expenses 156,583,268 135,753,645 140,726,106 143,395,401 Net (lo ss) (18,178,078 ) (789,855 ) 1,206,356 (14,998,763 ) Net (loss) Class A common stock - basic (0.66 ) (0.03 ) 0.04 (0.53 ) Class A common stock - diluted (0.66 ) (0.03 ) 0.04 (0.53 ) Class B common stock - basic and diluted (0.60 ) (0.03 ) 0.04 (0.50 ) |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Detail) - USD ($) | Mar. 08, 2019 | Jan. 31, 2019 | Jul. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Business Acquisition [Line Items] | ||||||
Operations commenced date | Aug. 26, 1986 | |||||
Stock ownership percentage owned by third party | 51.80% | |||||
Voting power percentage of outstanding common stock | 71.00% | |||||
Tax benefit for tax deductions related to option exercises | $ 64,765 | $ 25,938 | $ 873,515 | |||
Minimum percentage of class A common stock declared dividend excess over class B dividend | 10.00% | |||||
Premiums and losses related to certain products | 63.50% | 63.90% | 64.30% | |||
Atlantic States [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Percentage of share in results of pooled business subsidiary | 80.00% | 80.00% | ||||
Donegal Mutual [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Percentage of share in results of pooled business owned by third party | 20.00% | 20.00% | ||||
Premiums and losses related to certain products | 100.00% | |||||
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] | ||||||
Restructuring charges | $ 1,900,000 | |||||
Payments for restructuring cost | $ 1,500,000 | $ 260,000 | ||||
Impairment charge of real estate | $ 1,100,000 | |||||
Fair value of real asset held for sale | $ 1,200,000 | |||||
Net proceeds from sale of branch | $ 1,200,000 | |||||
Restructuring charges, accrual | 130,000 | |||||
Donegal Financial Services Corporation [Member] | ||||||
Business Acquisition [Line Items] | ||||||
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 B Common Stock [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Stock ownership percentage held by major shareholder | 84.00% | |||||
Minimum percentage of class A common stock declared dividend excess over class B dividend | 10.00% |
Impact of New Accounting Stan_2
Impact of New Accounting Standards - Additional Information (Detail) - USD ($) | Jan. 01, 2018 | Dec. 31, 2019 | Dec. 31, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Gain on equity securities | $ 8,900,000 | $ 1,200,000 | |
Loss on equity securities | $ 25,751 | $ 4,400,000 | |
Accounting Standards Update 2016-01 [Member] | Accumulated Net Unrealized Investment Losses [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Reclassification from AOCI to retained earnings | $ 4,900,000 |
Transactions with Affiliates -
Transactions with Affiliates - Additional Information (Detail) - USD ($) | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Ceded Credit Risk [Line Items] | ||||
Premiums and losses related to certain products | 63.50% | 63.90% | 64.30% | |
Coverage under catastrophic occurrence | $ 1,500,000 | |||
Charges for services | $ 134,143,158 | $ 126,153,511 | 124,999,770 | |
Maximum [Member] | Lease Office Equipment And Automobile [Member] | ||||
Ceded Credit Risk [Line Items] | ||||
Lease office equipment and automobiles range | 10 years | |||
Minimum [Member] | Lease Office Equipment And Automobile [Member] | ||||
Ceded Credit Risk [Line Items] | ||||
Lease office equipment and automobiles range | 3 years | |||
Atlantic States [Member] | ||||
Ceded Credit Risk [Line Items] | ||||
Percentage of share in results of pooled business subsidiary | 80.00% | 80.00% | ||
Coverage under catastrophic occurrence | $ 2,500,000 | 2,000,000 | 2,000,000 | |
Donegal Mutual [Member] | ||||
Ceded Credit Risk [Line Items] | ||||
Percentage of share in results of pooled business owned by third party | 20.00% | 20.00% | ||
Premiums and losses related to certain products | 100.00% | |||
Premiums and losses related to business of MICO | 25.00% | |||
Coverage under catastrophic occurrence | $ 2,000,000 | |||
Excess of loss reinsured under an agreement | $ 500,000 | |||
Period of Donegal Mutual under lease agreement | 10 years | |||
Le Mars [Member] | ||||
Ceded Credit Risk [Line Items] | ||||
Coverage under catastrophic occurrence | $ 1,000,000 | 750,000 | $ 750,000 | |
Southern [Member] | ||||
Ceded Credit Risk [Line Items] | ||||
Premiums and losses related to certain products | 100.00% | |||
Coverage under catastrophic occurrence | $ 2,000,000 | $ 1,500,000 | ||
Excess of loss reinsured under an agreement | 500,000 | |||
Insurance Subsidiaries [Member] | ||||
Ceded Credit Risk [Line Items] | ||||
Coverage under catastrophic occurrence | $ 5,000,000 | 5,000,000 | ||
Excess of loss reinsured under an agreement | $ 5,000,000 |
Transactions with Affiliates _2
Transactions with Affiliates - Schedule of Reinsurance Atlantic States Ceded to Pool (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Ceded Credit Risk [Line Items] | |||
Premiums earned | $ 314,859,014 | $ 326,198,234 | $ 310,179,267 |
Prepaid reinsurance premiums | 142,475,767 | 135,379,777 | |
Affiliated Entity [Member] | Atlantic States Ceded [Member] | |||
Ceded Credit Risk [Line Items] | |||
Premiums earned | 218,642,984 | 212,928,238 | 200,752,599 |
Losses and loss expenses | 173,238,503 | 159,495,489 | 140,015,950 |
Prepaid reinsurance premiums | 116,189,929 | 106,224,424 | 103,991,861 |
Liability for losses and loss expenses | $ 183,326,589 | $ 158,081,925 | $ 136,786,070 |
Transactions with Affiliates _3
Transactions with Affiliates - Schedule of Reinsurance Atlantic States Assumed from Pool (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Ceded Credit Risk [Line Items] | |||
Premiums earned | $ 314,859,014 | $ 326,198,234 | $ 310,179,267 |
Liability for losses and loss expenses | 470,940,000 | ||
Affiliated Entity [Member] | Atlantic States Assumed [Member] | |||
Ceded Credit Risk [Line Items] | |||
Premiums earned | 479,835,362 | 473,512,781 | 451,470,894 |
Losses and loss expenses | 309,852,141 | 335,789,280 | 289,503,373 |
Unearned premiums | 237,106,338 | 231,958,181 | 228,988,598 |
Liability for losses and loss expenses | $ 322,658,731 | $ 303,546,744 | $ 252,263,547 |
Transactions with Affiliates _4
Transactions with Affiliates - Schedule of Reinsurance Ceded to Donegal Mutual Pursuant to these Quota-Share Reinsurance Agreements (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Ceded Credit Risk [Line Items] | |||
Premiums earned | $ 314,859,014 | $ 326,198,234 | $ 310,179,267 |
Prepaid reinsurance premiums | 142,475,767 | 135,379,777 | |
Donegal Mutual [Member] | |||
Ceded Credit Risk [Line Items] | |||
Premiums earned | 42,079,112 | 42,813,929 | 42,578,047 |
Losses and loss expenses | 19,617,787 | 23,175,456 | 24,978,631 |
Prepaid reinsurance premiums | 19,217,849 | 19,047,084 | 19,827,115 |
Liability for losses and loss expenses | $ 36,597,834 | $ 38,434,078 | $ 36,396,109 |
Transactions with Affiliates _5
Transactions with Affiliates - Schedule of Insurance Subsidiaries Ceded to Donegal Mutual Pursuant to these Reinsurance Agreements (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Ceded Credit Risk [Line Items] | |||
Premiums earned | $ 314,859,014 | $ 326,198,234 | $ 310,179,267 |
Insurance Subsidiaries [Member] | |||
Ceded Credit Risk [Line Items] | |||
Premiums earned | 275,126,732 | 274,932,234 | 260,545,919 |
Catastrophe Reinsurance [Member] | Insurance Subsidiaries [Member] | |||
Ceded Credit Risk [Line Items] | |||
Premiums earned | 14,404,636 | 19,190,067 | 17,215,273 |
Losses and loss expenses | 13,769,736 | 12,899,927 | 8,953,411 |
Liability for losses and loss expenses | $ 3,149,907 | $ 4,847,176 | $ 3,399,207 |
Transactions with Affiliates _6
Transactions with Affiliates - Schedule of Affiliated Reinsurance Transactions on Net Premiums Our Insurance Subsidiaries Earned (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Ceded Credit Risk [Line Items] | |||
Assumed | $ 479,835,610 | $ 473,512,866 | $ 451,515,575 |
Ceded | (314,859,014) | (326,198,234) | (310,179,267) |
Insurance Subsidiaries [Member] | |||
Ceded Credit Risk [Line Items] | |||
Assumed | 479,835,362 | 473,512,781 | 451,470,623 |
Ceded | (275,126,732) | (274,932,234) | (260,545,919) |
Net | $ 204,708,630 | $ 198,580,547 | $ 190,924,704 |
Transactions with Affiliates _7
Transactions with Affiliates - Schedule of Reinsurance Transactions on Net Losses and Loss Expenses Our Insurance Subsidiaries Incurred (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Ceded Credit Risk [Line Items] | |||
Assumed | $ 485,233,762 | $ 476,482,451 | $ 466,087,983 |
Ceded | (322,204,999) | (326,545,370) | (320,956,412) |
Net premiums written | 752,601,289 | 744,015,804 | 729,138,922 |
Insurance Subsidiaries [Member] | |||
Ceded Credit Risk [Line Items] | |||
Assumed | 309,844,705 | 335,684,463 | 288,813,105 |
Ceded | (206,626,026) | (195,570,872) | (173,947,992) |
Net premiums written | $ 103,218,679 | $ 140,113,591 | $ 114,865,113 |
Investments - Summary of Amorti
Investments - Summary of Amortized Cost and Estimated Fair Values of Fixed Maturities (Detail) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Schedule of Equity Method Investments [Line Items] | ||
Total held to maturity, Amortized Cost | $ 476,093,782 | $ 402,798,518 |
Held to Maturity, Gross Unrealized Gains | 24,926,519 | 8,872,223 |
Held to Maturity, Gross Unrealized Losses | 705,957 | 6,632,445 |
Total held to maturity, Estimated Fair Value | 500,314,344 | 405,038,296 |
Available for Sale, Amortized Cost | 556,839,278 | 535,112,451 |
Available for Sale, Gross Unrealized Gains | 9,056,799 | 2,139,728 |
Available for Sale, Gross Unrealized Losses | 944,274 | 10,693,875 |
Available for Sale, Estimated Fair Value | 564,951,803 | 526,558,304 |
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 | 82,916,052 | 76,222,306 |
Held to Maturity, Gross Unrealized Gains | 1,803,230 | 174,904 |
Held to Maturity, Gross Unrealized Losses | 68,560 | 1,086,613 |
Total held to maturity, Estimated Fair Value | 84,650,722 | 75,310,597 |
Available for Sale, Amortized Cost | 19,302,056 | 45,188,053 |
Available for Sale, Gross Unrealized Gains | 81,773 | 25,241 |
Available for Sale, Gross Unrealized Losses | 19,370 | 1,003,365 |
Available for Sale, Estimated Fair Value | 19,364,459 | 44,209,929 |
Obligations of States and Political Subdivisions [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Total held to maturity, Amortized Cost | 204,634,486 | 159,292,158 |
Held to Maturity, Gross Unrealized Gains | 14,236,736 | 8,236,804 |
Held to Maturity, Gross Unrealized Losses | 288,174 | 704,104 |
Total held to maturity, Estimated Fair Value | 218,583,048 | 166,824,858 |
Available for Sale, Amortized Cost | 55,162,046 | 73,760,836 |
Available for Sale, Gross Unrealized Gains | 1,641,171 | 1,762,127 |
Available for Sale, Gross Unrealized Losses | 6,929 | 306,994 |
Available for Sale, Estimated Fair Value | 56,796,288 | 75,215,969 |
Corporate Securities [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Total held to maturity, Amortized Cost | 156,398,001 | 127,010,071 |
Held to Maturity, Gross Unrealized Gains | 8,274,912 | 396,197 |
Held to Maturity, Gross Unrealized Losses | 333,166 | 4,391,451 |
Total held to maturity, Estimated Fair Value | 164,339,747 | 123,014,817 |
Available for Sale, Amortized Cost | 154,946,586 | 140,688,937 |
Available for Sale, Gross Unrealized Gains | 4,477,035 | 203,393 |
Available for Sale, Gross Unrealized Losses | 180,312 | 3,059,185 |
Available for Sale, Estimated Fair Value | 159,243,309 | 137,833,145 |
Mortgage-Backed Securities [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Total held to maturity, Amortized Cost | 32,145,243 | 40,273,983 |
Held to Maturity, Gross Unrealized Gains | 611,641 | 64,318 |
Held to Maturity, Gross Unrealized Losses | 16,057 | 450,277 |
Total held to maturity, Estimated Fair Value | 32,740,827 | 39,888,024 |
Available for Sale, Amortized Cost | 327,428,590 | 275,474,625 |
Available for Sale, Gross Unrealized Gains | 2,856,820 | 148,967 |
Available for Sale, Gross Unrealized Losses | 737,663 | 6,324,331 |
Available for Sale, Estimated Fair Value | $ 329,547,747 | $ 269,299,261 |
Investments - Additional Inform
Investments - Additional Information (Detail) | Nov. 30, 2013USD ($) | Dec. 31, 2019USD ($)Securities | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
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) | $ 1,200,000 | |||
Accumulated other comprehensive loss | 504,170 | $ (14,228,059) | ||
Impairment losses | 0 | 0 | $ 0 | |
Sales or transfers, held to maturity | 0 | 0 | 0 | |
Derivative instruments or hedging activities | 0 | 0 | $ 0 | |
Amortized cost of fixed maturities on deposit with various regulatory authorities | 8,330,651 | 8,795,334 | ||
Unrealised Gains on Equity Securities | 12,179,912 | 4,817,917 | ||
Unrealised Loss on Equity Securities | 121,492 | 2,093,624 | ||
Equity [Member] | ||||
Schedule of Investments [Line Items] | ||||
Unrealised Gains on Equity Securities | 8,900,000 | 1,200,000 | ||
Unrealised Loss on Equity Securities | 25,751 | 4,400,000 | ||
Obligations of States and Political Subdivisions [Member] | ||||
Schedule of Investments [Line Items] | ||||
Aggregate fair value of bond held | 182,000,000 | 157,700,000 | ||
Amortized cost of bond held | 172,300,000 | 152,200,000 | ||
Special Revenue Bonds [Member] | ||||
Schedule of Investments [Line Items] | ||||
Aggregate fair value of bond held | 93,400,000 | 84,300,000 | ||
Amortized cost of bond held | $ 87,500,000 | $ 80,900,000 | ||
Education Bonds [Member] | ||||
Schedule of Investments [Line Items] | ||||
Percentage of investments in special revenue bonds | 44.00% | 49.00% | ||
Water and Sewer Utility Bonds [Member] | ||||
Schedule of Investments [Line Items] | ||||
Percentage of investments in special revenue bonds | 35.00% | 29.00% | ||
Fixed Maturities [Member] | ||||
Schedule of Investments [Line Items] | ||||
Number of fixed maturity securities classified as available for sale | Securities | 136 | |||
Accumulated Net Unrealized Investment Losses [Member] | ||||
Schedule of Investments [Line Items] | ||||
Accumulated other comprehensive loss | $ 7,500,000 | $ 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 ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Held to maturity | ||
Due in one year or less, Amortized Cost | $ 16,132,891 | |
Due after one year through five years, Amortized Cost | 73,727,277 | |
Due after five years through ten years, Amortized Cost | 182,428,771 | |
Due after ten years, Amortized Cost | 171,659,600 | |
Mortgage-backed securities, Amortized Cost | 32,145,243 | |
Total held to maturity, Amortized Cost | 476,093,782 | $ 402,798,518 |
Available for sale | ||
Due in one year or less, Amortized Cost | 12,943,726 | |
Due after one year through five years, Amortized Cost | 89,684,400 | |
Due after five years through ten years, Amortized Cost | 112,308,452 | |
Due after ten years, Amortized Cost | 14,474,110 | |
Mortgage-backed securities, Amortized Cost | 327,428,590 | |
Total available for sale, Amortized Cost | 556,839,278 | 535,112,451 |
Held to maturity | ||
Due in one year or less, Estimated Fair Value | 16,205,362 | |
Due after one year through five years, Estimated Fair Value | 76,542,800 | |
Due after five years through ten years, Estimated Fair Value | 191,642,042 | |
Due after ten years, Estimated Fair Value | 183,183,313 | |
Mortgage-backed securities, Estimated Fair Value | 32,740,827 | |
Total held to maturity, Estimated Fair Value | 500,314,344 | 405,038,296 |
Available for sale | ||
Due in one year or less, Estimated Fair Value | 13,075,792 | |
Due after one year through five years, Estimated Fair Value | 91,992,458 | |
Due after five years through ten years, Estimated Fair Value | 115,407,525 | |
Due after ten years, Estimated Fair Value | 14,928,281 | |
Mortgage-backed securities, Estimated Fair Value | 329,547,747 | |
Total available for sale, Estimated Fair Value | $ 564,951,803 | $ 526,558,304 |
Investments - Summary of Cost a
Investments - Summary of Cost and Estimated Fair Value of Equity Securities (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | ||
Cost | $ 43,419,136 | $ 40,942,716 |
Gross Gains | 12,179,912 | 4,817,917 |
Gross Losses | 121,492 | 2,093,624 |
Estimated Fair Value | $ 55,477,556 | $ 43,667,009 |
Investments - Summary of Net In
Investments - Summary of Net Investment Income, Consisting Primarily of Interest and Dividends (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Marketable Securities [Line Items] | |||
Investment income | $ 32,510,185 | $ 29,822,647 | $ 27,584,155 |
Investment expenses | (2,995,230) | (2,914,991) | (4,056,851) |
Net investment income | 29,514,955 | 26,907,656 | 23,527,304 |
Short-term investments [Member] | |||
Marketable Securities [Line Items] | |||
Investment income | 1,243,104 | 795,522 | 407,580 |
Fixed Maturities [Member] | |||
Marketable Securities [Line Items] | |||
Investment income | 29,969,774 | 27,733,555 | 26,143,924 |
Equity Securities [Member] | |||
Marketable Securities [Line Items] | |||
Investment income | 1,268,056 | 1,264,120 | 999,335 |
Other [Member] | |||
Marketable Securities [Line Items] | |||
Investment income | $ 29,251 | $ 29,450 | $ 33,316 |
Investments - Summary of Gross
Investments - Summary of Gross Investment Gains and Losses before Applicable Income Taxes (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Gain (Loss) on Securities [Line Items] | |||
Gross investment gains | $ 23,604,415 | $ 2,022,422 | $ 6,366,108 |
Gross investment losses | 1,619,798 | 6,823,931 | 660,853 |
Net investment gains (losses) | 21,984,617 | (4,801,509) | 5,705,255 |
Change in difference between fair value and cost of investments | 47,981,583 | (24,143,286) | 3,905,577 |
Fixed Maturities [Member] | |||
Gain (Loss) on Securities [Line Items] | |||
Gross investment gains | 470,983 | 131,660 | 168,855 |
Gross investment losses | 323,746 | 630,904 | 98,723 |
Change in difference between fair value and cost of investments | 38,647,456 | (20,641,433) | 2,335,578 |
Investments In Affiliates [Member] | |||
Gain (Loss) on Securities [Line Items] | |||
Gross investment gains | 12,662,147 | ||
Equity Securities [Member] | |||
Gain (Loss) on Securities [Line Items] | |||
Gross investment gains | 10,471,285 | 1,890,762 | 6,197,253 |
Gross investment losses | 1,296,052 | 6,193,027 | 562,130 |
Change in difference between fair value and cost of investments | $ 9,334,127 | $ (3,501,853) | $ 1,569,999 |
Investments - Summary of Fixed
Investments - Summary of Fixed Maturities with Unrealized Losses (Detail) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Securities, Available-for-sale [Line Items] | ||
Less Than 12 Months, Fair Value | $ 78,670,054 | $ 286,527,668 |
Less Than 12 Months, Unrealized Losses | 658,213 | 6,038,617 |
More Than 12 Months, Fair Value | 100,613,863 | 317,236,307 |
More Than 12 Months, Unrealized Losses | 992,018 | 11,287,703 |
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 | 7,461,245 | 26,342,398 |
Less Than 12 Months, Unrealized Losses | 45,688 | 165,774 |
More Than 12 Months, Fair Value | 5,394,735 | 54,900,027 |
More Than 12 Months, Unrealized Losses | 42,242 | 1,924,204 |
Obligations of States and Political Subdivisions [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less Than 12 Months, Fair Value | 23,339,340 | 28,321,962 |
Less Than 12 Months, Unrealized Losses | 293,516 | 477,357 |
More Than 12 Months, Fair Value | 2,326,813 | 21,559,520 |
More Than 12 Months, Unrealized Losses | 1,587 | 533,741 |
Corporate Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less Than 12 Months, Fair Value | 19,362,346 | 149,269,854 |
Less Than 12 Months, Unrealized Losses | 263,280 | 4,482,870 |
More Than 12 Months, Fair Value | 18,803,546 | 59,396,885 |
More Than 12 Months, Unrealized Losses | 250,198 | 2,967,766 |
Mortgage-Backed Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less Than 12 Months, Fair Value | 28,507,123 | 82,593,454 |
Less Than 12 Months, Unrealized Losses | 55,729 | 912,616 |
More Than 12 Months, Fair Value | 74,088,769 | 181,379,875 |
More Than 12 Months, Unrealized Losses | $ 697,991 | $ 5,861,992 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value Measurements for Investments in Available-for-Sale Fixed Maturity and Equity Securities (Detail) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities, Fair Value Disclosure | $ 564,951,803 | $ 526,558,304 |
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 | 19,364,459 | 44,209,929 |
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 | 56,796,288 | 75,215,969 |
Corporate Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities, Fair Value Disclosure | 159,243,309 | 137,833,145 |
Mortgage-Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities, Fair Value Disclosure | 329,547,747 | 269,299,261 |
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 | 570,225,313 | |
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 | 12,992,174 | |
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 | 620,429,359 | 557,233,139 |
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 | 19,364,459 | 44,209,929 |
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 | 56,796,288 | 75,215,969 |
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 | 159,243,309 | 137,833,145 |
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 | 329,547,747 | 269,299,261 |
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 | 55,477,556 | 30,674,835 |
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 | 28,351,110 | |
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 | 53,124,368 | 28,351,110 |
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 | 53,124,368 | 28,351,110 |
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 | 528,882,029 | |
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 | 567,304,991 | 528,882,029 |
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 | 19,364,459 | 44,209,929 |
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 | 56,796,288 | 75,215,969 |
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 | 159,243,309 | 137,833,145 |
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 | 329,547,747 | 269,299,261 |
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 | $ 2,353,188 | $ 2,323,725 |
Deferred Policy Acquisition C_3
Deferred Policy Acquisition Costs - Changes in Insurance Subsidiaries' Deferred Policy Acquisition Costs (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Insurance [Abstract] | |||
Balance, January 1 | $ 60,615,127 | $ 60,289,860 | $ 56,309,196 |
Acquisition costs deferred | 121,112,732 | 121,289,267 | 119,045,664 |
Amortization charged to earnings | (122,443,000) | (120,964,000) | (115,065,000) |
Balance, December 31 | $ 59,284,859 | $ 60,615,127 | $ 60,289,860 |
Property and Equipment - Proper
Property and Equipment - Property and Equipment (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Gross | $ 16,005,022 | $ 18,319,494 |
Accumulated depreciation | (11,446,950) | (13,628,790) |
Property and equipment, Net | 4,558,072 | 4,690,704 |
Office Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Gross | 8,660,163 | 10,049,884 |
Automobiles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Gross | $ 301,119 | 448,015 |
Lease office equipment and automobiles range | 5 years | |
Real Estate [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Gross | $ 4,977,813 | 4,977,813 |
Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Gross | $ 2,065,927 | $ 2,843,782 |
Lease office equipment and automobiles range | 5 years | |
Maximum [Member] | Office Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Lease office equipment and automobiles range | 15 years | |
Maximum [Member] | Real Estate [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Lease office equipment and automobiles range | 50 years | |
Minimum [Member] | Office Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Lease office equipment and automobiles range | 3 years | |
Minimum [Member] | Real Estate [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Lease office equipment and automobiles range | 5 years |
Property and Equipment - Additi
Property and Equipment - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation expense | $ 282,235 | $ 479,550 | $ 478,800 |
Liability for Losses and Loss_3
Liability for Losses and Loss Expenses - Summary of Insurance Subsidiaries' Liability for Losses and Loss Expenses (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Liability for Claims and Claims Adjustment Expense [Abstract] | |||
Balance at January 1 | $ 814,665,224 | $ 676,671,727 | $ 606,664,590 |
Less reinsurance recoverable | (339,267,525) | (293,271,257) | (259,147,147) |
Net balance at January 1 | 475,397,699 | 383,400,470 | 347,517,443 |
Incurred related to: | |||
Current year | 519,319,941 | 540,826,810 | 480,646,641 |
Prior years | (12,932,277) | 35,631,610 | 6,621,413 |
Total incurred | 506,387,664 | 576,458,420 | 487,268,054 |
Paid related to: | |||
Current year | 278,923,614 | 308,578,285 | 288,379,600 |
Prior years | 195,956,327 | 175,882,906 | 163,005,427 |
Total paid | 474,879,941 | 484,461,191 | 451,385,027 |
Net balance at end of period | 506,905,422 | 475,397,699 | 383,400,470 |
Plus reinsurance recoverable | 362,768,427 | 339,267,525 | 293,271,257 |
Balance at end of period | $ 869,673,849 | $ 814,665,224 | $ 676,671,727 |
Liability for Losses and Loss_4
Liability for Losses and Loss Expenses - Additional Information (Detail) - USD ($) | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
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 | $ (12,932,277) | $ 35,631,610 | $ 6,621,413 | |
Percentage of 2010 development | 2.70% | 9.30% | 1.90% | |
Personal Automobile [Member] | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Reserve created for commercial automobile | $ 20,800,000 | $ 17,700,000 |
Liability for Losses and Loss_5
Liability for Losses and Loss Expenses - Summary of Incurred and Paid Claims Development, Net of Reinsurance (Detail) Claims in Thousands, $ in Thousands | Dec. 31, 2019USD ($)Claims | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2012USD ($) | Dec. 31, 2011USD ($) | Dec. 31, 2010USD ($) |
Personal Automobile [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 1,468,469 | |||||||||
Personal Automobile [Member] | 2010 [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 118,294 | $ 118,314 | $ 118,289 | $ 118,385 | $ 118,587 | $ 118,916 | $ 118,876 | $ 118,562 | $ 117,552 | $ 117,967 |
Total IBNR Plus Expected Development on Reported Claims | $ 27 | |||||||||
Cumulative Number of Reported Claims | Claims | 70 | |||||||||
Personal Automobile [Member] | 2011 [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 133,207 | 133,142 | 133,145 | 133,218 | 133,617 | 133,229 | 132,987 | 131,678 | 127,929 | |
Total IBNR Plus Expected Development on Reported Claims | $ 73 | |||||||||
Cumulative Number of Reported Claims | Claims | 75 | |||||||||
Personal Automobile [Member] | 2012 [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 136,677 | 136,141 | 136,463 | 136,552 | 136,493 | 135,592 | 133,201 | 130,415 | ||
Total IBNR Plus Expected Development on Reported Claims | $ 215 | |||||||||
Cumulative Number of Reported Claims | Claims | 69 | |||||||||
Personal Automobile [Member] | 2013 [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 132,853 | 132,934 | 132,604 | 132,643 | 131,594 | 130,737 | 124,965 | |||
Total IBNR Plus Expected Development on Reported Claims | $ 175 | |||||||||
Cumulative Number of Reported Claims | Claims | 66 | |||||||||
Personal Automobile [Member] | 2014 [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 126,734 | 126,779 | 126,200 | 124,210 | 124,806 | 124,426 | ||||
Total IBNR Plus Expected Development on Reported Claims | $ 264 | |||||||||
Cumulative Number of Reported Claims | Claims | 71 | |||||||||
Personal Automobile [Member] | 2015 [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 142,408 | 142,493 | 139,181 | 139,333 | 137,596 | |||||
Total IBNR Plus Expected Development on Reported Claims | $ 732 | |||||||||
Cumulative Number of Reported Claims | Claims | 70 | |||||||||
Personal Automobile [Member] | 2016 [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 157,943 | 157,516 | 153,937 | 150,216 | ||||||
Total IBNR Plus Expected Development on Reported Claims | $ 2,372 | |||||||||
Cumulative Number of Reported Claims | Claims | 73 | |||||||||
Personal Automobile [Member] | 2017 [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 175,939 | 176,728 | 166,690 | |||||||
Total IBNR Plus Expected Development on Reported Claims | $ 4,884 | |||||||||
Cumulative Number of Reported Claims | Claims | 79 | |||||||||
Personal Automobile [Member] | 2018 [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 183,358 | 186,580 | ||||||||
Total IBNR Plus Expected Development on Reported Claims | $ 10,675 | |||||||||
Cumulative Number of Reported Claims | Claims | 80 | |||||||||
Personal Automobile [Member] | 2019 [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 161,056 | |||||||||
Total IBNR Plus Expected Development on Reported Claims | $ 28,339 | |||||||||
Cumulative Number of Reported Claims | Claims | 66 | |||||||||
Homeowners [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 656,708 | |||||||||
Homeowners [Member] | 2010 [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 60,641 | 60,624 | 60,542 | 60,443 | 60,440 | 60,355 | 59,972 | 60,248 | 60,729 | 60,315 |
Cumulative Number of Reported Claims | Claims | 25 | |||||||||
Homeowners [Member] | 2011 [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 70,682 | 70,642 | 70,479 | 70,351 | 70,297 | 70,381 | 70,436 | 70,461 | 71,256 | |
Cumulative Number of Reported Claims | Claims | 27 | |||||||||
Homeowners [Member] | 2012 [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 54,537 | 54,523 | 54,381 | 54,281 | 54,351 | 54,468 | 54,794 | 53,962 | ||
Cumulative Number of Reported Claims | Claims | 19 | |||||||||
Homeowners [Member] | 2013 [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 51,008 | 50,971 | 50,988 | 50,874 | 51,122 | 51,121 | 50,887 | |||
Cumulative Number of Reported Claims | Claims | 13 | |||||||||
Homeowners [Member] | 2014 [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 57,402 | 57,288 | 57,332 | 57,680 | 58,378 | 56,916 | ||||
Total IBNR Plus Expected Development on Reported Claims | $ (4) | |||||||||
Cumulative Number of Reported Claims | Claims | 18 | |||||||||
Homeowners [Member] | 2015 [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 63,099 | 63,071 | 63,053 | 63,925 | 63,359 | |||||
Total IBNR Plus Expected Development on Reported Claims | $ 45 | |||||||||
Cumulative Number of Reported Claims | Claims | 14 | |||||||||
Homeowners [Member] | 2016 [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 63,355 | 63,735 | 64,064 | 62,443 | ||||||
Total IBNR Plus Expected Development on Reported Claims | $ 78 | |||||||||
Cumulative Number of Reported Claims | Claims | 13 | |||||||||
Homeowners [Member] | 2017 [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 79,305 | 79,911 | 79,283 | |||||||
Total IBNR Plus Expected Development on Reported Claims | $ 724 | |||||||||
Cumulative Number of Reported Claims | Claims | 18 | |||||||||
Homeowners [Member] | 2018 [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 83,385 | 81,965 | ||||||||
Total IBNR Plus Expected Development on Reported Claims | $ 1,657 | |||||||||
Cumulative Number of Reported Claims | Claims | 19 | |||||||||
Homeowners [Member] | 2019 [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 73,294 | |||||||||
Total IBNR Plus Expected Development on Reported Claims | $ 6,775 | |||||||||
Cumulative Number of Reported Claims | Claims | 14 | |||||||||
Commercial Automobile [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 528,544 | |||||||||
Commercial Automobile [Member] | 2010 [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 21,768 | 21,726 | 21,713 | 21,746 | 21,756 | 21,490 | 21,477 | 20,695 | 19,913 | 19,315 |
Total IBNR Plus Expected Development on Reported Claims | $ 9 | |||||||||
Cumulative Number of Reported Claims | Claims | 7 | |||||||||
Commercial Automobile [Member] | 2011 [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 29,542 | 29,751 | 29,487 | 29,107 | 29,112 | 28,893 | 28,570 | 27,157 | 26,642 | |
Total IBNR Plus Expected Development on Reported Claims | $ 18 | |||||||||
Cumulative Number of Reported Claims | Claims | 9 | |||||||||
Commercial Automobile [Member] | 2012 [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 31,896 | 31,803 | 31,648 | 31,278 | 31,435 | 30,606 | 27,720 | 26,557 | ||
Total IBNR Plus Expected Development on Reported Claims | $ 28 | |||||||||
Cumulative Number of Reported Claims | Claims | 8 | |||||||||
Commercial Automobile [Member] | 2013 [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 36,569 | 36,435 | 36,404 | 35,240 | 34,751 | 33,749 | 32,902 | |||
Total IBNR Plus Expected Development on Reported Claims | $ 89 | |||||||||
Cumulative Number of Reported Claims | Claims | 9 | |||||||||
Commercial Automobile [Member] | 2014 [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 49,168 | 49,284 | 48,213 | 47,326 | 44,544 | 42,760 | ||||
Total IBNR Plus Expected Development on Reported Claims | $ 270 | |||||||||
Cumulative Number of Reported Claims | Claims | 11 | |||||||||
Commercial Automobile [Member] | 2015 [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 54,517 | 54,259 | 51,412 | 48,323 | 46,526 | |||||
Total IBNR Plus Expected Development on Reported Claims | $ 662 | |||||||||
Cumulative Number of Reported Claims | Claims | 12 | |||||||||
Commercial Automobile [Member] | 2016 [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 67,127 | 65,905 | 57,353 | 54,302 | ||||||
Total IBNR Plus Expected Development on Reported Claims | $ 2,134 | |||||||||
Cumulative Number of Reported Claims | Claims | 13 | |||||||||
Commercial Automobile [Member] | 2017 [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 67,697 | 67,927 | 61,484 | |||||||
Total IBNR Plus Expected Development on Reported Claims | $ 5,149 | |||||||||
Cumulative Number of Reported Claims | Claims | 14 | |||||||||
Commercial Automobile [Member] | 2018 [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 81,396 | 79,307 | ||||||||
Total IBNR Plus Expected Development on Reported Claims | $ 11,763 | |||||||||
Cumulative Number of Reported Claims | Claims | 15 | |||||||||
Commercial Automobile [Member] | 2019 [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 88,864 | |||||||||
Total IBNR Plus Expected Development on Reported Claims | $ 27,764 | |||||||||
Cumulative Number of Reported Claims | Claims | 15 | |||||||||
Commercial MultiPeril [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 485,580 | |||||||||
Commercial MultiPeril [Member] | 2010 [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 30,105 | 29,925 | 29,779 | 29,463 | 29,453 | 29,373 | 29,169 | 29,390 | 29,656 | 28,745 |
Cumulative Number of Reported Claims | Claims | 6 | |||||||||
Commercial MultiPeril [Member] | 2011 [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 38,434 | 38,160 | 38,105 | 38,270 | 37,385 | 37,576 | 35,942 | 35,411 | 33,054 | |
Cumulative Number of Reported Claims | Claims | 7 | |||||||||
Commercial MultiPeril [Member] | 2012 [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 36,876 | 36,525 | 36,214 | 35,755 | 34,117 | 32,449 | 30,716 | 29,789 | ||
Cumulative Number of Reported Claims | Claims | 6 | |||||||||
Commercial MultiPeril [Member] | 2013 [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 37,453 | 37,365 | 37,981 | 37,205 | 37,292 | 35,679 | 35,683 | |||
Total IBNR Plus Expected Development on Reported Claims | $ 38 | |||||||||
Cumulative Number of Reported Claims | Claims | 6 | |||||||||
Commercial MultiPeril [Member] | 2014 [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 53,116 | 53,294 | 52,336 | 51,843 | 50,135 | 48,204 | ||||
Total IBNR Plus Expected Development on Reported Claims | $ 147 | |||||||||
Cumulative Number of Reported Claims | Claims | 7 | |||||||||
Commercial MultiPeril [Member] | 2015 [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 45,873 | 45,104 | 44,728 | 43,874 | 42,070 | |||||
Total IBNR Plus Expected Development on Reported Claims | $ 519 | |||||||||
Cumulative Number of Reported Claims | Claims | 6 | |||||||||
Commercial MultiPeril [Member] | 2016 [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 48,871 | 48,267 | 46,988 | 43,005 | ||||||
Total IBNR Plus Expected Development on Reported Claims | $ 2,015 | |||||||||
Cumulative Number of Reported Claims | Claims | 6 | |||||||||
Commercial MultiPeril [Member] | 2017 [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 56,517 | 56,043 | 56,185 | |||||||
Total IBNR Plus Expected Development on Reported Claims | $ 4,604 | |||||||||
Cumulative Number of Reported Claims | Claims | 7 | |||||||||
Commercial MultiPeril [Member] | 2018 [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 66,470 | 66,265 | ||||||||
Total IBNR Plus Expected Development on Reported Claims | $ 10,568 | |||||||||
Cumulative Number of Reported Claims | Claims | 7 | |||||||||
Commercial MultiPeril [Member] | 2019 [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 71,865 | |||||||||
Total IBNR Plus Expected Development on Reported Claims | $ 21,633 | |||||||||
Cumulative Number of Reported Claims | Claims | 6 | |||||||||
Workers Compensation [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 445,090 | |||||||||
Workers Compensation [Member] | 2010 [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 26,829 | 26,801 | 26,984 | 27,037 | 27,121 | 26,944 | 26,637 | 27,010 | 27,859 | $ 27,304 |
Total IBNR Plus Expected Development on Reported Claims | $ 37 | |||||||||
Cumulative Number of Reported Claims | Claims | 5 | |||||||||
Workers Compensation [Member] | 2011 [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 35,034 | 34,926 | 35,194 | 35,039 | 35,670 | 36,369 | 36,614 | 35,757 | $ 32,490 | |
Total IBNR Plus Expected Development on Reported Claims | $ 53 | |||||||||
Cumulative Number of Reported Claims | Claims | 6 | |||||||||
Workers Compensation [Member] | 2012 [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 35,932 | 35,954 | 36,468 | 37,163 | 37,926 | 38,827 | 39,516 | $ 39,142 | ||
Total IBNR Plus Expected Development on Reported Claims | $ 75 | |||||||||
Cumulative Number of Reported Claims | Claims | 6 | |||||||||
Workers Compensation [Member] | 2013 [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 42,651 | 42,555 | 42,327 | 42,828 | 44,289 | 47,027 | $ 46,325 | |||
Total IBNR Plus Expected Development on Reported Claims | $ 187 | |||||||||
Cumulative Number of Reported Claims | Claims | 6 | |||||||||
Workers Compensation [Member] | 2014 [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 47,693 | 47,540 | 48,537 | 49,288 | 51,553 | $ 51,508 | ||||
Total IBNR Plus Expected Development on Reported Claims | $ 264 | |||||||||
Cumulative Number of Reported Claims | Claims | 6 | |||||||||
Workers Compensation [Member] | 2015 [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 43,006 | 44,986 | 45,991 | 49,615 | $ 53,332 | |||||
Total IBNR Plus Expected Development on Reported Claims | $ 836 | |||||||||
Cumulative Number of Reported Claims | Claims | 6 | |||||||||
Workers Compensation [Member] | 2016 [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 44,969 | 47,883 | 49,802 | $ 58,814 | ||||||
Total IBNR Plus Expected Development on Reported Claims | $ 1,630 | |||||||||
Cumulative Number of Reported Claims | Claims | 6 | |||||||||
Workers Compensation [Member] | 2017 [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 52,687 | 56,351 | $ 60,450 | |||||||
Total IBNR Plus Expected Development on Reported Claims | $ 3,362 | |||||||||
Cumulative Number of Reported Claims | Claims | 6 | |||||||||
Workers Compensation [Member] | 2018 [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 55,291 | $ 62,197 | ||||||||
Total IBNR Plus Expected Development on Reported Claims | $ 7,081 | |||||||||
Cumulative Number of Reported Claims | Claims | 6 | |||||||||
Workers Compensation [Member] | 2019 [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 60,998 | |||||||||
Total IBNR Plus Expected Development on Reported Claims | $ 19,280 | |||||||||
Cumulative Number of Reported Claims | Claims | 6 |
Liability for Losses and Loss_6
Liability for Losses and Loss Expenses - Summary of Cumulative Claim Frequency and Total of Incurred but not Reported Claims plus Expected Development on Reported Claims Incurred (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Personal Automobile [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 1,347,094 | |||||||||
All outstanding liabilities before 2009, net of reinsurance | 719 | |||||||||
Liabilities for claims and claims adjustment expenses, net of reinsurance | 122,094 | |||||||||
Personal Automobile [Member] | 2010 [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 118,119 | $ 118,093 | $ 118,054 | $ 117,978 | $ 117,812 | $ 116,748 | $ 113,243 | $ 107,662 | $ 96,749 | $ 75,889 |
Personal Automobile [Member] | 2011 [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 132,835 | 132,777 | 132,714 | 132,479 | 131,319 | 127,545 | 121,621 | 110,249 | 87,191 | |
Personal Automobile [Member] | 2012 [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 136,137 | 135,132 | 134,581 | 133,428 | 130,862 | 124,652 | 111,941 | 87,517 | ||
Personal Automobile [Member] | 2013 [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 131,642 | 131,326 | 130,026 | 125,946 | 120,118 | 109,051 | 84,241 | |||
Personal Automobile [Member] | 2014 [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 124,926 | 123,815 | 120,491 | 114,893 | 104,736 | 85,377 | ||||
Personal Automobile [Member] | 2015 [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 139,121 | 135,027 | 128,395 | 116,303 | 93,611 | |||||
Personal Automobile [Member] | 2016 [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 151,159 | 143,321 | 129,507 | 102,433 | ||||||
Personal Automobile [Member] | 2017 [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 159,879 | 142,372 | 111,964 | |||||||
Personal Automobile [Member] | 2018 [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 150,175 | 115,585 | ||||||||
Personal Automobile [Member] | 2019 [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 103,101 | |||||||||
Homeowners [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 635,976 | |||||||||
All outstanding liabilities before 2009, net of reinsurance | 30 | |||||||||
Liabilities for claims and claims adjustment expenses, net of reinsurance | 20,762 | |||||||||
Homeowners [Member] | 2010 [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 60,557 | 60,540 | 60,525 | 60,501 | 60,486 | 60,239 | 59,875 | 59,283 | 57,334 | 47,419 |
Homeowners [Member] | 2011 [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 70,692 | 70,692 | 70,648 | 70,626 | 70,541 | 70,351 | 70,125 | 69,345 | 57,588 | |
Homeowners [Member] | 2012 [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 54,557 | 54,557 | 54,356 | 54,317 | 54,298 | 54,028 | 53,619 | 46,566 | ||
Homeowners [Member] | 2013 [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 50,967 | 50,902 | 51,043 | 50,478 | 50,210 | 49,410 | 40,949 | |||
Homeowners [Member] | 2014 [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 57,243 | 56,995 | 57,195 | 56,990 | 56,255 | 45,823 | ||||
Homeowners [Member] | 2015 [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 62,844 | 62,590 | 62,204 | 61,542 | 51,885 | |||||
Homeowners [Member] | 2016 [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 63,144 | 62,760 | 61,145 | 50,125 | ||||||
Homeowners [Member] | 2017 [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 78,006 | 77,663 | 67,077 | |||||||
Homeowners [Member] | 2018 [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 79,892 | 70,385 | ||||||||
Homeowners [Member] | 2019 [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 58,074 | |||||||||
Commercial Automobile [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 410,219 | |||||||||
All outstanding liabilities before 2009, net of reinsurance | 47 | |||||||||
Liabilities for claims and claims adjustment expenses, net of reinsurance | 118,372 | |||||||||
Commercial Automobile [Member] | 2010 [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 21,559 | 21,558 | 21,549 | 21,482 | 21,014 | 20,804 | 19,030 | 16,426 | 14,180 | 10,778 |
Commercial Automobile [Member] | 2011 [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 29,474 | 29,102 | 28,836 | 28,758 | 28,014 | 26,973 | 24,267 | 19,106 | 13,876 | |
Commercial Automobile [Member] | 2012 [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 31,228 | 31,104 | 30,402 | 29,873 | 27,417 | 23,718 | 20,240 | 13,642 | ||
Commercial Automobile [Member] | 2013 [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 36,106 | 36,004 | 34,083 | 31,053 | 26,879 | 23,557 | 16,306 | |||
Commercial Automobile [Member] | 2014 [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 48,418 | 47,290 | 44,374 | 39,436 | 31,089 | 22,707 | ||||
Commercial Automobile [Member] | 2015 [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 51,605 | 48,261 | 41,678 | 35,342 | 23,875 | |||||
Commercial Automobile [Member] | 2016 [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 57,237 | 48,837 | 38,237 | 27,033 | ||||||
Commercial Automobile [Member] | 2017 [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 49,703 | 40,213 | 28,707 | |||||||
Commercial Automobile [Member] | 2018 [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 47,941 | 33,862 | ||||||||
Commercial Automobile [Member] | 2019 [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 36,948 | |||||||||
Commercial MultiPeril [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 390,852 | |||||||||
All outstanding liabilities before 2009, net of reinsurance | 425 | |||||||||
Liabilities for claims and claims adjustment expenses, net of reinsurance | 95,153 | |||||||||
Commercial MultiPeril [Member] | 2010 [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 29,923 | 29,721 | 29,632 | 28,906 | 28,681 | 27,768 | 26,832 | 24,749 | 22,017 | 17,007 |
Commercial MultiPeril [Member] | 2011 [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 38,413 | 38,366 | 38,240 | 37,759 | 36,722 | 33,526 | 30,286 | 24,767 | 18,773 | |
Commercial MultiPeril [Member] | 2012 [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 36,329 | 35,909 | 35,331 | 33,327 | 29,370 | 26,634 | 23,384 | 16,666 | ||
Commercial MultiPeril [Member] | 2013 [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 37,333 | 36,321 | 35,104 | 33,614 | 29,159 | 26,216 | 19,875 | |||
Commercial MultiPeril [Member] | 2014 [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 51,615 | 50,017 | 47,021 | 40,936 | 35,520 | 27,920 | ||||
Commercial MultiPeril [Member] | 2015 [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 42,849 | 39,162 | 34,323 | 29,419 | 21,837 | |||||
Commercial MultiPeril [Member] | 2016 [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 41,193 | 34,612 | 29,402 | 19,660 | ||||||
Commercial MultiPeril [Member] | 2017 [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 42,691 | 36,926 | 27,399 | |||||||
Commercial MultiPeril [Member] | 2018 [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 42,296 | 30,597 | ||||||||
Commercial MultiPeril [Member] | 2019 [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 28,210 | |||||||||
Workers Compensation [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 346,316 | |||||||||
All outstanding liabilities before 2009, net of reinsurance | 3,261 | |||||||||
Liabilities for claims and claims adjustment expenses, net of reinsurance | 102,035 | |||||||||
Workers Compensation [Member] | 2010 [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 26,301 | 26,295 | 26,050 | 25,804 | 25,337 | 24,539 | 23,137 | 21,176 | 15,937 | $ 8,066 |
Workers Compensation [Member] | 2011 [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 34,109 | 33,963 | 33,577 | 33,067 | 32,394 | 31,905 | 27,517 | 21,450 | $ 9,157 | |
Workers Compensation [Member] | 2012 [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 34,622 | 34,460 | 34,177 | 33,196 | 31,244 | 28,812 | 22,963 | $ 11,097 | ||
Workers Compensation [Member] | 2013 [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 40,361 | 39,617 | 38,877 | 36,351 | 32,783 | 26,043 | $ 13,052 | |||
Workers Compensation [Member] | 2014 [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 43,866 | 42,465 | 40,393 | 36,284 | 28,513 | $ 13,932 | ||||
Workers Compensation [Member] | 2015 [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 37,936 | 36,929 | 34,192 | 27,531 | $ 13,071 | |||||
Workers Compensation [Member] | 2016 [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 40,570 | 37,178 | 30,344 | $ 14,709 | ||||||
Workers Compensation [Member] | 2017 [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 39,684 | 31,990 | $ 15,581 | |||||||
Workers Compensation [Member] | 2018 [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 31,928 | $ 17,644 | ||||||||
Workers Compensation [Member] | 2019 [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 16,939 |
Liability for Losses and Loss_7
Liability for Losses and Loss Expenses - Reconciliation of Net Incurred and Paid Claims Development Tables to Liability for Claims and Claim Adjustment Expenses (Detail) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Claims Development [Line Items] | ||||
Net outstanding liabilities | $ 470,940,000 | |||
Reinsurance recoverable | 348,332,000 | |||
Unallocated loss adjustment expenses | 50,402,000 | |||
Gross liability for unpaid losses and loss expenses | 869,673,849 | $ 814,665,224 | $ 676,671,727 | $ 606,664,590 |
Personal Automobile [Member] | ||||
Claims Development [Line Items] | ||||
Net outstanding liabilities | 122,094,000 | |||
Reinsurance recoverable | 119,364,000 | |||
Homeowners [Member] | ||||
Claims Development [Line Items] | ||||
Net outstanding liabilities | 20,762,000 | |||
Reinsurance recoverable | 10,216,000 | |||
Commercial Automobile [Member] | ||||
Claims Development [Line Items] | ||||
Net outstanding liabilities | 118,372,000 | |||
Reinsurance recoverable | 70,973,000 | |||
Commercial MultiPeril [Member] | ||||
Claims Development [Line Items] | ||||
Net outstanding liabilities | 95,153,000 | |||
Reinsurance recoverable | 58,765,000 | |||
Workers Compensation [Member] | ||||
Claims Development [Line Items] | ||||
Net outstanding liabilities | 102,035,000 | |||
Reinsurance recoverable | 81,837,000 | |||
Other [Member] | ||||
Claims Development [Line Items] | ||||
Net outstanding liabilities | 12,524,000 | |||
Reinsurance recoverable | $ 7,177,000 |
Liability for Losses and Loss_8
Liability for Losses and Loss Expenses - Supplementary Information About Average Historical Claims Duration (Detail) | Dec. 31, 2019 |
Personal Automobile [Member] | |
Claims Development [Line Items] | |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 1 | 64.60% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 2 | 17.30% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 3 | 8.80% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 4 | 4.60% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 5 | 2.70% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 6 | 0.90% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 7 | 0.20% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 8 | 0.30% |
Homeowners [Member] | |
Claims Development [Line Items] | |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 1 | 81.50% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 2 | 15.30% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 3 | 1.50% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 4 | 0.60% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 5 | 0.30% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 6 | 0.20% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 7 | 0.10% |
Commercial Automobile [Member] | |
Claims Development [Line Items] | |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 1 | 44.00% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 2 | 18.10% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 3 | 13.30% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 4 | 11.30% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 5 | 6.60% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 6 | 2.50% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 7 | 1.20% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 8 | 0.50% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 9 | 0.70% |
Commercial MultiPeril [Member] | |
Claims Development [Line Items] | |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 1 | 47.80% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 2 | 17.00% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 3 | 10.20% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 4 | 10.00% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 5 | 6.60% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 6 | 3.50% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 7 | 1.60% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 8 | 1.30% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 9 | 0.20% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 10 | 0.70% |
Workers Compensation [Member] | |
Claims Development [Line Items] | |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 1 | 29.90% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 2 | 31.50% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 3 | 16.30% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 4 | 8.20% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 5 | 4.10% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 6 | 2.50% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 7 | 1.40% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 8 | 0.80% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year 9 | 0.70% |
Borrowings - Additional Informa
Borrowings - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
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% | ||
Interest paid | $ 250,000 | $ 250,000 | $ 250,000 |
Line of credit facility amount outstanding | 35,000,000 | $ 60,000,000 | |
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 of the requirements of the new credit agreement as of the filing date of this Form 10-K Report. | ||
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 | $ 240,569 | ||
Outstanding advances | 35,000,000 | ||
Federal home loan bank, fixed rate advances | 35,000,000 | ||
Pre-Payment of Penalty | 176,000 | ||
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 | ||
Line of credit facility amount outstanding | $ 0 | ||
Revolving Credit Facility [Member] | Manufacturers and Traders Trust Company [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||
Line of Credit Facility [Line Items] | |||
Debt Instrument variable interest rate spread | 2.25% | ||
Lines of Credit [Member] | FHLB of Pittsburgh [Member] | Atlantic States [Member] | |||
Line of Credit Facility [Line Items] | |||
Interest rate on advances | 1.74% | ||
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] | Dec. 31, 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 | 36,370,886 |
Borrowing capacity currently available | $ 240,569 |
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) | Dec. 31, 2019USD ($) |
FHLB of Pittsburgh [Member] | Atlantic States [Member] | |
Line of Credit Facility [Line Items] | |
Collateral Pledged at carrying value | $ 36,295,910 |
Reinsurance - Additional Inform
Reinsurance - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 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 |
Percentage of reinsurer coverage | 40.00% |
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 |
Donegal Mutual [Member] | |
Ceded Credit Risk [Line Items] | |
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 |
Reinsurance - Ceded Reinsurance
Reinsurance - Ceded Reinsurance Transactions with Unaffiliated Reinsurers (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Ceded Credit Risk [Line Items] | |||
Premiums written | $ 322,204,999 | $ 326,545,370 | $ 320,956,412 |
Premiums earned | 314,859,014 | 326,198,234 | 310,179,267 |
Prepaid reinsurance premiums | 142,475,767 | 135,379,777 | |
Unaffiliated Entity [Member] | |||
Ceded Credit Risk [Line Items] | |||
Premiums written | 36,941,997 | 50,160,604 | 51,241,267 |
Premiums earned | 39,732,282 | 51,266,000 | 49,633,348 |
Losses and loss expenses | 33,615,819 | 50,652,202 | 44,575,268 |
Prepaid reinsurance premiums | 7,067,989 | 10,108,269 | 11,213,665 |
Liability for losses and loss expenses | $ 139,694,097 | $ 137,904,346 | $ 116,689,871 |
Reinsurance - Total Ceded Reins
Reinsurance - Total Ceded Reinsurance Transactions with both Affiliated and Unaffiliated Reinsurers (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Ceded Credit Risk [Line Items] | |||
Premiums earned | $ 314,859,014 | $ 326,198,234 | $ 310,179,267 |
Prepaid reinsurance premiums | 142,475,767 | 135,379,777 | |
Affiliated Entity and Unaffiliated Entity [Member] | |||
Ceded Credit Risk [Line Items] | |||
Premiums earned | 314,859,014 | 326,198,234 | 310,179,267 |
Losses and loss expenses | 240,241,845 | 246,223,074 | 218,523,260 |
Prepaid reinsurance premiums | 142,475,767 | 135,379,777 | 135,032,641 |
Liability for losses and loss expenses | $ 362,768,427 | $ 339,267,525 | $ 293,271,257 |
Reinsurance - Amounts Represent
Reinsurance - Amounts Represent Effect of Reinsurance on Premiums Written (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Premiums Written, Net [Abstract] | |||
Direct | $ 589,572,526 | $ 594,078,723 | $ 584,007,351 |
Assumed | 485,233,762 | 476,482,451 | 466,087,983 |
Ceded | (322,204,999) | (326,545,370) | (320,956,412) |
Net premiums written | $ 752,601,289 | $ 744,015,804 | $ 729,138,922 |
Reinsurance - Amounts Represe_2
Reinsurance - Amounts Represent Effect of Reinsurance on Premiums Earned (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reinsurance Disclosures [Abstract] | |||||||||||
Direct | $ 591,101,804 | $ 593,976,241 | $ 561,178,447 | ||||||||
Assumed | 479,835,610 | 473,512,866 | 451,515,575 | ||||||||
Ceded | (314,859,014) | (326,198,234) | (310,179,267) | ||||||||
Net premiums earned | $ 189,420,787 | $ 189,821,058 | $ 188,763,313 | $ 188,073,242 | $ 186,150,478 | $ 187,661,705 | $ 185,714,110 | $ 181,764,580 | $ 756,078,400 | $ 741,290,873 | $ 702,514,755 |
Percentage of assumed premiums earned to net premiums earned | 63.50% | 63.90% | 64.30% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Operating Loss Carryforwards [Line Items] | |||
Effective tax rate computed at the statutory federal rate | 21.00% | 21.00% | 35.00% |
Additional tax expense related to new corporate tax rate reform | $ 4,752,547 | ||
Reclassification of an alternative minimum tax credit carry forward | $ 8,500,000 | ||
Net operating loss carryback period | 2 years | ||
Operating loss carryforwards expiration period | 2038 | ||
Other deferred tax assets, net | $ 26,100,000 | $ 32,400,000 | |
Parent Company [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Valuation allowance related to the portion of operating loss carryforwards | 7,500,000 | $ 8,100,000 | |
Earliest Tax Year [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Tax years open for examination | 2016 | ||
Latest Tax Year [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Tax years open for examination | 2019 | ||
Le Mars [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Valuation allowance related to the portion of operating loss carryforwards | 18,033 | $ 18,033 | |
Operating loss carryforwards | $ 956,865 | ||
Operating loss carryforwards expiration period | 2020 | ||
Operating loss carryforwards annual limitations in amount on use | $ 376,000 |
Income Taxes - Provision for In
Income Taxes - Provision for Income Tax (Benefit) Expense (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Components of Income Tax Expense (Benefit), Continuing Operations [Abstract] | |||
Current federal income tax | $ 8,454,358 | $ (11,296,704) | $ (2,139,061) |
Deferred federal income tax | 649,928 | (4,179,805) | 7,137,423 |
Federal income tax expense (benefit) | 9,104,286 | (15,476,509) | 4,998,362 |
Pennsylvania income tax | 825,000 | ||
Income tax expense (benefit) | $ 9,929,286 | $ (15,476,509) | $ 4,998,362 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Federal Income Tax Rate (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | |||
Income (loss) before income taxes | $ 57,081,030 | $ (48,236,849) | $ 12,114,462 |
Computed "expected" taxes | 11,987,016 | (10,129,738) | 4,240,062 |
Tax-exempt interest | (1,325,197) | (1,521,090) | (3,241,530) |
Proration | 357,044 | 405,204 | 518,948 |
Effect of tax reform | 4,752,547 | ||
Dividends received deduction | (1,913,238) | (99,726) | (508,409) |
Net operating loss carryback | (4,210,523) | ||
Tax benefit on exercise of options | (64,765) | (25,938) | (873,515) |
Other, net | 236,676 | 105,302 | 110,259 |
Pennsylvania income tax, net of federal benefit | 651,750 | ||
Income tax expense (benefit) | $ 9,929,286 | $ (15,476,509) | $ 4,998,362 |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets and Deferred Tax Liabilities (Detail) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred tax assets: | ||
Unearned premium | $ 15,482,366 | $ 15,634,433 |
Loss reserves | 7,820,683 | 7,644,415 |
Net operating loss carryforward | 200,942 | 3,090,010 |
Net unrealized losses | 3,782,145 | |
Other | 2,603,155 | 2,517,791 |
Total gross deferred tax assets | 33,627,137 | 40,738,990 |
Less valuation allowance | (7,538,024) | (8,334,663) |
Net deferred tax assets | 26,089,113 | 32,404,327 |
Deferred tax liabilities: | ||
Deferred policy acquisition costs | 12,449,820 | 12,729,176 |
Loss reserve transition adjustment | 1,733,056 | 2,339,068 |
Other | 3,391,926 | 4,266,328 |
Total gross deferred tax liabilities | 17,574,802 | 19,334,572 |
Net deferred tax asset | 8,514,311 | 13,069,755 |
Parent Company [Member] | ||
Deferred tax assets: | ||
Net state operating loss carryforward | $ 7,519,991 | $ 8,070,196 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Jul. 18, 2013 | |
Equity, Class of Treasury Stock [Line Items] | |||
Minimum percentage of class A common stock declared dividend excess over class B dividend | 10.00% | ||
Class A Common Stock [Member] | |||
Equity, Class of Treasury Stock [Line Items] | |||
Treasury stock | 3,002,588 | ||
Class B Common Stock [Member] | |||
Equity, Class of Treasury Stock [Line Items] | |||
Minimum percentage of class A common stock declared dividend excess over class B dividend | 10.00% | ||
Treasury stock | 72,465 | ||
Stock Repurchase Program Two [Member] | Class A Common Stock [Member] | |||
Equity, Class of Treasury Stock [Line Items] | |||
Authority to purchase shares | 500,000 | ||
Common stock shares purchased | 0 | 57,658 |
Stock Compensation Plans - Addi
Stock Compensation Plans - Additional Information (Detail) - USD ($) | Jan. 01, 2020 | Jan. 02, 2019 | Jan. 02, 2018 | Jan. 03, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2015 | Dec. 31, 2011 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Compensation expense in stock compensation plans | $ 1,400,000 | $ 1,700,000 | $ 2,000,000 | ||||||
Income tax benefit of stock compensation plans | 288,901 | 354,412 | 692,164 | ||||||
Unrecognized compensation expense related to nonvested share-based compensation granted under the plan | $ 2,000,000 | 2,500,000 | |||||||
Weighted average period of unrecognized compensation expense | 1 year 10 months 24 days | ||||||||
Cash from option exercises | $ 2,900,000 | 1,100,000 | 13,400,000 | ||||||
Tax benefit for tax deductions from option exercises | $ 64,765 | $ 25,938 | $ 873,515 | ||||||
Equity Incentive Plan [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Exercisable period of stock options | 5 years | ||||||||
Restricted shares issued to directors | 500 | ||||||||
Weighted-average grant date fair value of options granted | $ 1.15 | $ 1.66 | $ 1.81 | ||||||
Fair value of risk-free interest rate | 1.64% | 2.68% | 2.01% | ||||||
Expected life | 3 years | 3 years | 3 years | ||||||
Expected volatility | 17.00% | 22.00% | 19.00% | ||||||
Expected dividend yield | 4.00% | 4.00% | 3.00% | ||||||
Shares available for future option grants | 4 | ||||||||
Equity Incentive Plan [Member] | Class A Common Stock [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Common stock available for issuance to employees of subsidiaries and affiliates under identical plan | 4,500,000 | ||||||||
Common stock available for issuance to directors and those of the subsidiaries and affiliates under identical plan | 500,000 | ||||||||
Equity Incentive Plan [Member] | Restricted Stock [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Additional issued shares | 8,500 | 8,500 | 9,000 | ||||||
Employee Stock Purchase Plan [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Exercisable period of stock options | 10 years | ||||||||
Common stock available for issuance to employees/directors and those of the subsidiaries and affiliates | 300,000 | ||||||||
Percentage of purchase price of shares | 85.00% | 85.00% | |||||||
Employee Stock Purchase Plan [Member] | Subsequent Event [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Additional issued shares | 20,424 | ||||||||
Shares issued during period price per share | $ 12.28 | ||||||||
Agency Stock Purchase Plan [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Additional issued shares | 110,836 | 117,935 | 104,418 | ||||||
Common stock available for issuance to employees/directors and those of the subsidiaries and affiliates | 350,000 | ||||||||
Percentage of purchase price of shares | 90.00% | ||||||||
Investment | $ 12,000 | ||||||||
Number of trading days of subscription period | 10 days | ||||||||
2019 Amendment Plan [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Common stock available for issuance to employees/directors and those of the subsidiaries and affiliates | 500,000 |
Stock Compensation Plans - Info
Stock Compensation Plans - Information Regarding Activity in Stock Option Plans (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Retirement Benefits [Abstract] | |||
Number of Options, Outstanding Beginning Balance | 10,024,862 | 9,264,462 | 9,338,648 |
Number of Options, Granted | 1,045,400 | 1,063,000 | 943,000 |
Number of Options, Exercised | (217,498) | (79,961) | (924,019) |
Number of Options, Forfeited | (416,774) | (222,639) | (93,167) |
Number of Options, Outstanding Ending Balance | 10,435,990 | 10,024,862 | 9,264,462 |
Number of Options, Exercisable | 8,449,389 | 7,936,659 | 6,946,677 |
Weighted-Average Exercise Price Per Share, Outstanding Beginning Balance | $ 15.09 | $ 15.26 | $ 14.95 |
Weighted-Average Exercise Price Per Share, Granted | 14.97 | 13.69 | 17.58 |
Weighted-Average Exercise Price Per Share, Exercised | 13.23 | 13.74 | 14.45 |
Weighted-Average Exercise Price Per Share, Forfeited | 15.88 | 16 | 15.43 |
Weighted-Average Exercise Price Per Share, Outstanding Ending Balance | 15.09 | 15.09 | 15.26 |
Weighted-Average Exercise Price Per Share, Exercisable | $ 15.13 | $ 15.02 | $ 14.90 |
Stock Compensation Plans - Summ
Stock Compensation Plans - Summary of Information about Stock Options Outstanding (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of Options Outstanding | 10,435,990 | ||
Number of Options, Exercisable | 8,449,389 | 7,936,659 | 6,946,677 |
July 27, 2011 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Exercise Price | $ 12.50 | ||
Number of Options Outstanding | 907,101 | ||
Weighted-Average Remaining Contractual Life | 2 years | ||
Number of Options, Exercisable | 907,101 | ||
December 20, 2012 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Exercise Price | $ 14.50 | ||
Number of Options Outstanding | 1,009,819 | ||
Weighted-Average Remaining Contractual Life | 3 years | ||
Number of Options, Exercisable | 1,009,819 | ||
December 19, 2013 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Exercise Price | $ 15.90 | ||
Number of Options Outstanding | 1,991,804 | ||
Weighted-Average Remaining Contractual Life | 4 years | ||
Number of Options, Exercisable | 1,991,804 | ||
December 18, 2014 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Exercise Price | $ 15.80 | ||
Number of Options Outstanding | 1,270,581 | ||
Weighted-Average Remaining Contractual Life | 5 years | ||
Number of Options, Exercisable | 1,270,581 | ||
December 17, 2015 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Exercise Price | $ 13.64 | ||
Number of Options Outstanding | 1,191,845 | ||
Weighted-Average Remaining Contractual Life | 1 year | ||
Number of Options, Exercisable | 1,191,845 | ||
December 15, 2016 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Exercise Price | $ 16.48 | ||
Number of Options Outstanding | 1,202,808 | ||
Weighted-Average Remaining Contractual Life | 2 years | ||
Number of Options, Exercisable | 1,202,808 | ||
December 21, 2017 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Exercise Price | $ 17.60 | ||
Number of Options Outstanding | 799,832 | ||
Weighted-Average Remaining Contractual Life | 3 years | ||
Number of Options, Exercisable | 533,168 | ||
December 20, 2018 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Exercise Price | $ 13.69 | ||
Number of Options Outstanding | 1,016,800 | ||
Weighted-Average Remaining Contractual Life | 4 years | ||
Number of Options, Exercisable | 338,930 | ||
March 4, 2019 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Exercise Price | $ 13.51 | ||
Number of Options Outstanding | 10,000 | ||
Weighted-Average Remaining Contractual Life | 4 years 2 months 12 days | ||
Number of Options, Exercisable | 3,333 | ||
December 19, 2019 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Exercise Price | $ 14.98 | ||
Number of Options Outstanding | 1,035,400 | ||
Weighted-Average Remaining Contractual Life | 5 years |
Stock Compensation Plans - Su_2
Stock Compensation Plans - Summary of Plan Activity (Detail) - $ / shares | Jul. 01, 2019 | Jan. 01, 2019 | Jul. 01, 2018 | Jan. 01, 2018 | Jul. 01, 2017 | Jan. 01, 2017 |
Issue Date One [Member] | ||||||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ||||||
Shares Issued, Price | $ 13.76 | |||||
Shares Issued, Shares | 18,512 | |||||
Issue Date Two [Member] | ||||||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ||||||
Shares Issued, Price | $ 13.52 | |||||
Shares Issued, Shares | 25,155 | |||||
Issue Date Three [Member] | ||||||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ||||||
Shares Issued, Price | $ 13.34 | |||||
Shares Issued, Shares | 20,662 | |||||
Issue Date Four [Member] | ||||||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ||||||
Shares Issued, Price | $ 11.57 | |||||
Shares Issued, Shares | 27,802 | |||||
Issue Date Five [Member] | ||||||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ||||||
Shares Issued, Price | $ 11.60 | |||||
Shares Issued, Shares | 24,834 | |||||
Issue Date Six [Member] | ||||||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ||||||
Shares Issued, Price | $ 12.24 | |||||
Shares Issued, Shares | 22,926 |
Statutory Net Income, Capital_3
Statutory Net Income, Capital and Surplus and Dividend Restrictions - Statutory Net Income, Capital and Surplus and Dividend (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statutory Accounting Practices [Line Items] | |||
Statutory capital and surplus | $ 418,449,596 | $ 364,518,536 | $ 407,125,532 |
Statutory net income (loss) | 44,680,696 | (33,246,417) | 1,677,549 |
Atlantic States [Member] | |||
Statutory Accounting Practices [Line Items] | |||
Statutory capital and surplus | 259,030,868 | 230,736,313 | 260,428,754 |
Statutory unassigned (deficit) surplus | 155,909,822 | 140,713,118 | 172,709,955 |
Statutory net income (loss) | 22,282,231 | (23,458,516) | (2,037,672) |
Southern [Member] | |||
Statutory Accounting Practices [Line Items] | |||
Statutory capital and surplus | 54,405,568 | 45,355,785 | 54,503,581 |
Statutory unassigned (deficit) surplus | (2,375,794) | (6,346,270) | 2,914,532 |
Statutory net income (loss) | 5,061,477 | (9,822,457) | (3,375,434) |
Peninsula [Member] | |||
Statutory Accounting Practices [Line Items] | |||
Statutory capital and surplus | 39,244,570 | 32,717,996 | 39,396,818 |
Statutory unassigned (deficit) surplus | 20,936,805 | 14,415,949 | 21,148,253 |
Statutory net income (loss) | 7,360,378 | (6,316,130) | (841,119) |
MICO [Member] | |||
Statutory Accounting Practices [Line Items] | |||
Statutory capital and surplus | 65,768,590 | 55,708,442 | 52,796,379 |
Statutory unassigned (deficit) surplus | 38,910,008 | 28,949,919 | 26,162,540 |
Statutory net income (loss) | $ 9,976,610 | $ 6,350,686 | $ 7,931,774 |
Statutory Net Income, Capital_4
Statutory Net Income, Capital and Surplus and Dividend Restrictions - Additional Information (Detail) $ in Millions | Dec. 31, 2019USD ($) |
Statutory Accounting Practices [Line Items] | |
Amounts available for distribution as dividends | $ 39.9 |
Atlantic States [Member] | |
Statutory Accounting Practices [Line Items] | |
Amounts available for distribution as dividends | 25.9 |
Southern [Member] | |
Statutory Accounting Practices [Line Items] | |
Amounts available for distribution as dividends | 5.4 |
Peninsula [Member] | |
Statutory Accounting Practices [Line Items] | |
Amounts available for distribution as dividends | 2 |
MICO [Member] | |
Statutory Accounting Practices [Line Items] | |
Amounts available for distribution as dividends | $ 6.6 |
Reconciliation of Statutory F_3
Reconciliation of Statutory Filings to Amounts Reported in the Consolidated Financial Statements - Reconciliations of Statutory Net (loss) Income and Capital and Surplus (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure Text Block [Abstract] | ||||||||||||
Statutory net income (loss) of insurance subsidiaries | $ 44,680,696 | $ (33,246,417) | $ 1,677,549 | |||||||||
Increases (decreases): | ||||||||||||
Deferred policy acquisition costs | (1,330,268) | 325,267 | 3,980,664 | |||||||||
Deferred federal income taxes | 639,284 | 4,179,807 | 1,334,410 | |||||||||
Salvage and subrogation recoverable | 207,000 | 2,061,600 | 1,199,200 | |||||||||
Consolidating eliminations and adjustments | (11,048,314) | (16,013,971) | (13,534,428) | |||||||||
Parent-only net income | 14,003,346 | 9,933,374 | 12,458,705 | |||||||||
Net income (loss) | $ 14,153,747 | $ 5,186,379 | $ 4,788,454 | $ 23,023,164 | $ (14,998,763) | $ 1,206,356 | $ (789,855) | $ (18,178,078) | 47,151,744 | (32,760,340) | 7,116,100 | |
Statutory Capital And Surplus Of Insurance Subsidiaries [Abstract] | ||||||||||||
Statutory capital and surplus of insurance subsidiaries | 418,449,596 | 364,518,536 | 418,449,596 | 364,518,536 | 407,125,532 | |||||||
Deferred policy acquisition costs | 59,284,859 | 60,615,127 | 59,284,859 | 60,615,127 | 60,289,860 | $ 56,309,196 | ||||||
Deferred federal income taxes | (15,477,843) | (20,094,374) | (15,477,843) | (20,094,374) | (14,422,511) | |||||||
Salvage and subrogation recoverable | 20,245,200 | 20,038,200 | 20,245,200 | 20,038,200 | 17,976,600 | |||||||
Non-admitted assets and other adjustments, net | 1,727,754 | 1,904,083 | 1,727,754 | 1,904,083 | 1,960,089 | |||||||
Fixed maturities | (326,795) | (16,528,367) | (326,795) | (16,528,367) | (8,748,140) | |||||||
Parent-only equity and other adjustments | (32,887,252) | (11,583,304) | (32,887,252) | (11,583,304) | (15,485,326) | |||||||
Total stockholders' equity | $ 451,015,519 | $ 398,869,901 | $ 451,015,519 | $ 398,869,901 | $ 448,696,104 | $ 438,615,320 |
Supplementary Cash Flow Infor_3
Supplementary Cash Flow Information - Net Income Taxes and Interest Paid (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Supplemental Cash Flow Elements [Abstract] | |||
Income taxes | $ (9,827,433) | $ (3,290,247) | $ 3,050,000 |
Interest | $ 321,585 | $ 1,280,352 | $ 1,341,706 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2019shares | |
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 |
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 | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Class A Common Stock [Member] | |||||||||||
Numerator: | |||||||||||
Allocation of net income (loss) | $ 38,718 | $ (26,691) | $ 5,879 | ||||||||
Denominator: | |||||||||||
Weighted-average shares outstanding | 22,986 | 22,705 | 21,799 | ||||||||
Basic earnings (loss) per share | $ 0.50 | $ 0.19 | $ 0.17 | $ 0.82 | $ (0.53) | $ 0.04 | $ (0.03) | $ (0.66) | $ 1.68 | $ (1.18) | $ 0.27 |
Numerator: | |||||||||||
Allocation of net income (loss) | $ 38,718 | $ (26,691) | $ 5,879 | ||||||||
Denominator: | |||||||||||
Number of shares used in basic computation | 22,986 | 22,705 | 21,799 | ||||||||
Weighted-average shares effect of dilutive securities | |||||||||||
Director and employee stock options | 211 | 843 | |||||||||
Number of shares used in diluted computation | 23,197 | 22,705 | 22,642 | ||||||||
Diluted earnings (loss) per share | (0.53) | 0.04 | (0.03) | (0.66) | $ 1.67 | $ (1.18) | $ 0.26 | ||||
Class B Common Stock [Member] | |||||||||||
Denominator: | |||||||||||
Weighted-average shares outstanding | 5,577 | 5,577 | 5,577 | ||||||||
Basic earnings (loss) per share | $ 1.51 | $ (1.09) | $ 0.22 | ||||||||
Numerator: | |||||||||||
Allocation of net income (loss) | $ 8,434 | $ (6,069) | $ 1,237 | ||||||||
Denominator: | |||||||||||
Number of shares used in basic computation | 5,577 | 5,577 | 5,577 | ||||||||
Weighted-average shares effect of dilutive securities | |||||||||||
Diluted earnings (loss) per share | 0.50 | 0.18 | 0.17 | 0.82 | $ 1.51 | $ (1.09) | $ 0.22 | ||||
Basic and diluted (loss) earnings per share | $ 0.45 | $ 0.16 | $ 0.15 | $ 0.75 | $ (0.50) | $ 0.04 | $ (0.03) | $ (0.60) | $ 1.51 | $ (1.09) | $ 0.22 |
Condensed Financial Informati_3
Condensed Financial Information of Parent Company - Summary of Condensed Balance Sheets (Detail) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Assets [Abstract] | ||||
Short-term investments | $ 14,030,222 | $ 16,748,760 | ||
Cash | 49,318,930 | 52,594,461 | $ 37,833,435 | $ 24,587,214 |
Property and equipment | 4,558,072 | 4,690,704 | ||
Total assets | 1,923,161,131 | 1,832,078,267 | ||
Liabilities [Abstract] | ||||
Cash dividends declared to stockholders | 4,075,234 | 3,948,484 | ||
Borrowings under lines of credit | 35,000,000 | 60,000,000 | ||
Other | 7,524,095 | 1,863,363 | ||
Total liabilities | 1,472,145,612 | 1,433,208,366 | ||
Stockholders' equity | 451,015,519 | 398,869,901 | 448,696,104 | 438,615,320 |
Total liabilities and stockholders' equity | 1,923,161,131 | 1,832,078,267 | ||
Parent Company [Member] | ||||
Assets [Abstract] | ||||
Investment in subsidiaries/affiliates (equity method) | 489,657,000 | 465,030,000 | ||
Short-term investments | 2,502,000 | 29,000 | ||
Cash | 2,350,000 | 1,542,000 | $ 3,237,000 | $ 1,820,000 |
Property and equipment | 944,000 | 928,000 | ||
Total assets | 495,453,000 | 467,529,000 | ||
Liabilities [Abstract] | ||||
Cash dividends declared to stockholders | 4,075,000 | 3,948,000 | ||
Borrowings under lines of credit | 35,000,000 | 60,000,000 | ||
Other | 5,362,000 | 4,711,000 | ||
Total liabilities | 44,437,000 | 68,659,000 | ||
Stockholders' equity | 451,016,000 | 398,870,000 | ||
Total liabilities and stockholders' equity | $ 495,453,000 | $ 467,529,000 |
Condensed Financial Informati_4
Condensed Financial Information of Parent Company - Summary of Condensed Statements of Income (Loss) and Comprehensive Income (Loss) (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenues | |||||||||||
Realized investment gains | $ 21,984,617 | $ (4,801,509) | $ 5,705,255 | ||||||||
Total revenues | $ 200,938,743 | $ 198,009,900 | $ 198,788,954 | $ 214,713,874 | $ 186,805,834 | $ 199,904,180 | $ 195,790,028 | $ 189,328,278 | 812,451,471 | 771,828,320 | 739,026,537 |
Expenses | |||||||||||
Interest | 1,579,299 | 2,302,082 | 1,593,437 | ||||||||
Total expenses | 755,370,441 | 820,065,169 | 726,912,075 | ||||||||
Income before income tax expense (benefit) and equity in undistributed net income (loss) of subsidiaries | 57,081,030 | (48,236,849) | 12,114,462 | ||||||||
Income tax expense (benefit) | 9,929,286 | (15,476,509) | 4,998,362 | ||||||||
Net income (loss) | 14,153,747 | 5,186,379 | 4,788,454 | 23,023,164 | (14,998,763) | 1,206,356 | (789,855) | (18,178,078) | 47,151,744 | (32,760,340) | 7,116,100 |
Statements of Comprehensive Income (Loss) | |||||||||||
Net income (loss) | $ 14,153,747 | $ 5,186,379 | $ 4,788,454 | $ 23,023,164 | $ (14,998,763) | $ 1,206,356 | $ (789,855) | $ (18,178,078) | 47,151,744 | (32,760,340) | 7,116,100 |
Other comprehensive income (loss), net of tax | |||||||||||
Unrealized gain (loss)—subsidiaries | 14,848,545 | (7,019,532) | 3,811,151 | ||||||||
Comprehensive income (loss) | 61,883,973 | (39,385,469) | 7,161,783 | ||||||||
Parent Company [Member] | |||||||||||
Revenues | |||||||||||
Dividends from subsidiaries | 4,000,000 | 11,000,000 | 13,000,000 | ||||||||
Realized investment gains | 12,378,000 | ||||||||||
Other | 1,009,000 | 3,196,000 | 2,131,000 | ||||||||
Total revenues | 17,387,000 | 14,196,000 | 15,131,000 | ||||||||
Expenses | |||||||||||
Operating Expenses | 1,420,000 | 1,628,000 | 1,433,000 | ||||||||
Interest | 1,327,000 | 2,224,000 | 1,929,000 | ||||||||
Total expenses | 2,747,000 | 3,852,000 | 3,362,000 | ||||||||
Income before income tax expense (benefit) and equity in undistributed net income (loss) of subsidiaries | 14,640,000 | 10,344,000 | 11,769,000 | ||||||||
Income tax expense (benefit) | 636,000 | 411,000 | (690,000) | ||||||||
Income before equity in undistributed net income (loss) of subsidiaries | 14,004,000 | 9,933,000 | 12,459,000 | ||||||||
Equity in undistributed net income (loss) of subsidiaries | 33,148,000 | (42,694,000) | (5,343,000) | ||||||||
Net income (loss) | 47,152,000 | (32,760,000) | 7,116,000 | ||||||||
Statements of Comprehensive Income (Loss) | |||||||||||
Net income (loss) | 47,152,000 | (32,760,000) | 7,116,000 | ||||||||
Other comprehensive income (loss), net of tax | |||||||||||
Unrealized gain (loss)—subsidiaries | 14,732,000 | (6,625,000) | 46,000 | ||||||||
Other comprehensive income (loss), net of tax | 14,732,000 | (6,625,000) | 46,000 | ||||||||
Comprehensive income (loss) | $ 61,884,000 | $ (39,385,000) | $ 7,162,000 |
Condensed Financial Informati_5
Condensed Financial Information of Parent Company - Summary of Condensed Statements of Cash Flows (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash Flows from Operating Activities: | |||
Net income (loss) | $ 47,151,744 | $ (32,760,340) | $ 7,116,100 |
Adjustments: | |||
Realized investment gains | (21,984,617) | 4,801,509 | (5,705,255) |
Other | 6,033,243 | 299,262 | (113,482) |
Net adjustments | 29,208,033 | 96,536,474 | 73,884,098 |
Net cash provided by operating activities | 76,359,777 | 63,776,134 | 81,000,198 |
Cash Flows from Investing Activities: | |||
Net (purchases) sale of short-term investments | 2,718,538 | (5,698,845) | (1,678,908) |
Sale of equity securities | 20,287,000 | ||
Net cash used in investing activities | (43,377,179) | (37,606,007) | (58,443,382) |
Cash Flows from Financing Activities: | |||
Cash dividends paid | (16,092,643) | (15,658,950) | (14,822,052) |
Issuance of common stock | 4,834,514 | 3,249,849 | 15,511,457 |
Payments on lines of credit | (25,000,000) | (10,000,000) | |
Borrowings under lines of credit | 1,000,000 | ||
Net cash used in financing activities | (36,258,129) | (11,409,101) | (9,310,595) |
Cash at beginning of year | 52,594,461 | 37,833,435 | 24,587,214 |
Cash at end of year | 49,318,930 | 52,594,461 | 37,833,435 |
Donegal Financial Services Corporation [Member] | |||
Adjustments: | |||
Dividends received from DFSC | 1,037,000 | ||
Cash Flows from Investing Activities: | |||
Sale of equity securities | 33,923,000 | ||
Parent Company [Member] | |||
Cash Flows from Operating Activities: | |||
Net income (loss) | 47,152,000 | (32,760,000) | 7,116,000 |
Adjustments: | |||
Equity in undistributed net (income) loss of subsidiaries | (33,148,000) | 42,694,000 | 5,343,000 |
Realized investment gains | (12,378,000) | ||
Other | 490,000 | 2,531,000 | 1,011,000 |
Net adjustments | (45,036,000) | 45,225,000 | 7,391,000 |
Net cash provided by operating activities | 2,116,000 | 12,465,000 | 14,507,000 |
Cash Flows from Investing Activities: | |||
Net (purchases) sale of short-term investments | (2,473,000) | 1,000 | |
Net purchase of property and equipment | (150,000) | (106,000) | (788,000) |
Investment in subsidiaries | (18,283,000) | (2,644,000) | (2,992,000) |
Other | 0 | (1,000) | (1,000) |
Net cash used in investing activities | 33,304,000 | (2,751,000) | (3,780,000) |
Cash Flows from Financing Activities: | |||
Cash dividends paid | (16,093,000) | (15,659,000) | (14,821,000) |
Issuance of common stock | 6,481,000 | 3,250,000 | 15,511,000 |
Payments on lines of credit | (10,000,000) | ||
Borrowings under lines of credit | 1,000,000 | ||
Net cash used in financing activities | (34,612,000) | (11,409,000) | (9,310,000) |
Net increase (decrease) in cash | 808,000 | (1,695,000) | 1,417,000 |
Cash at beginning of year | 1,542,000 | 3,237,000 | 1,820,000 |
Cash at end of year | $ 2,350,000 | $ 1,542,000 | $ 3,237,000 |
Segment Information - Summary o
Segment Information - Summary of Financial Data by Segment (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Premiums earned: | |||||||||||
Premiums earned | $ 189,420,787 | $ 189,821,058 | $ 188,763,313 | $ 188,073,242 | $ 186,150,478 | $ 187,661,705 | $ 185,714,110 | $ 181,764,580 | $ 756,078,400 | $ 741,290,873 | $ 702,514,755 |
Net investment income | 29,514,955 | 26,907,656 | 23,527,304 | ||||||||
Investment gains (losses) | 21,984,617 | (4,801,509) | 5,705,255 | ||||||||
Equity in earnings of DFSC | 295,000 | 2,693,962 | 1,621,605 | ||||||||
Other | 4,578,000 | 5,737,000 | 5,658,000 | ||||||||
Total revenues | $ 200,938,743 | $ 198,009,900 | $ 198,788,954 | $ 214,713,874 | $ 186,805,834 | $ 199,904,180 | $ 195,790,028 | $ 189,328,278 | 812,451,471 | 771,828,320 | 739,026,537 |
Underwriting income (loss): | |||||||||||
SAP underwriting income (loss) | 6,787,000 | (75,649,000) | (25,779,000) | ||||||||
GAAP adjustments | (3,079,000) | 894,000 | 4,408,000 | ||||||||
GAAP underwriting income (loss) | 3,708,000 | (74,755,000) | (21,371,000) | ||||||||
Net investment income | 29,514,955 | 26,907,656 | 23,527,304 | ||||||||
Investment gains (losses) | 21,984,617 | (4,801,509) | 5,705,255 | ||||||||
Equity in earnings of DFSC | 295,000 | 2,693,962 | 1,621,605 | ||||||||
Other | 1,578,000 | 1,718,000 | 2,631,000 | ||||||||
Income (loss) before income tax expense (benefit) | 57,081,030 | (48,236,849) | 12,114,462 | ||||||||
Commercial Lines [Member] | |||||||||||
Premiums earned: | |||||||||||
Premiums earned | 385,465,000 | 337,924,000 | 318,391,000 | ||||||||
Underwriting income (loss): | |||||||||||
SAP underwriting income (loss) | 8,404,000 | (22,059,000) | 13,263,000 | ||||||||
Personal Lines [Member] | |||||||||||
Premiums earned: | |||||||||||
Premiums earned | 370,613,000 | 403,367,000 | 384,124,000 | ||||||||
Underwriting income (loss): | |||||||||||
SAP underwriting income (loss) | $ (1,617,000) | $ (53,590,000) | $ (39,042,000) |
Segment Information - Additiona
Segment Information - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2019Segment | |
Income Statement [Abstract] | |
Number of Reportable Segments | 3 |
Guaranty Fund and Other Insur_2
Guaranty Fund and Other Insurance-Related Assessments - Additional Information (Detail) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Guarantees [Abstract] | ||
Insurance subsidiaries' liabilities for guaranty fund and other insurance | $ 1,600,000 | $ 1,900,000 |
Surcharges collected by insurance subsidiaries | $ 519,462 | $ 583,361 |
Interim Financial Data - Summar
Interim Financial Data - Summary of Interim Financial Data (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Summary of interim financial data | |||||||||||
Net premiums earned | $ 189,420,787 | $ 189,821,058 | $ 188,763,313 | $ 188,073,242 | $ 186,150,478 | $ 187,661,705 | $ 185,714,110 | $ 181,764,580 | $ 756,078,400 | $ 741,290,873 | $ 702,514,755 |
Total revenues | 200,938,743 | 198,009,900 | 198,788,954 | 214,713,874 | 186,805,834 | 199,904,180 | 195,790,028 | 189,328,278 | 812,451,471 | 771,828,320 | 739,026,537 |
Net losses and loss expenses | 121,026,333 | 130,743,395 | 131,507,280 | 123,110,656 | 143,395,401 | 140,726,106 | 135,753,645 | 156,583,268 | 506,387,664 | 576,458,420 | 487,268,054 |
Net (loss) income | $ 14,153,747 | $ 5,186,379 | $ 4,788,454 | $ 23,023,164 | $ (14,998,763) | $ 1,206,356 | $ (789,855) | $ (18,178,078) | $ 47,151,744 | $ (32,760,340) | $ 7,116,100 |
Class A Common Stock [Member] | |||||||||||
Net (loss) earnings per common share: | |||||||||||
Earnings per share, Basic | $ 0.50 | $ 0.19 | $ 0.17 | $ 0.82 | $ (0.53) | $ 0.04 | $ (0.03) | $ (0.66) | $ 1.68 | $ (1.18) | $ 0.27 |
Earnings per share, Diluted | (0.53) | 0.04 | (0.03) | (0.66) | 1.67 | (1.18) | 0.26 | ||||
Class B Common Stock [Member] | |||||||||||
Net (loss) earnings per common share: | |||||||||||
Earnings per share, Basic | 1.51 | (1.09) | 0.22 | ||||||||
Earnings per share, Diluted | 0.50 | 0.18 | 0.17 | 0.82 | 1.51 | (1.09) | 0.22 | ||||
Common stock - basic and diluted | $ 0.45 | $ 0.16 | $ 0.15 | $ 0.75 | $ (0.50) | $ 0.04 | $ (0.03) | $ (0.60) | $ 1.51 | $ (1.09) | $ 0.22 |
Schedule III - Supplementary _2
Schedule III - Supplementary Insurance Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items] | |||
Net Premiums Earned | $ 756,078 | $ 741,291 | $ 702,515 |
Net Investment Income | 29,515 | 26,908 | 23,527 |
Net Losses and Loss Expenses | 506,388 | 576,458 | 487,268 |
Amortization of Deferred Policy Acquisition Costs | 122,443 | 120,964 | 115,065 |
Other Underwriting Expenses | 114,562 | 113,270 | 116,538 |
Net Premiums Written | 752,601 | 744,016 | 729,139 |
Deferred Policy Acquisition Costs | 59,285 | 60,615 | |
Liability For Losses and Loss Expenses | 869,674 | 814,665 | |
Unearned Premiums | 510,147 | 506,529 | |
Commercial Lines [Member] | |||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items] | |||
Net Premiums Earned | 385,465 | 337,924 | 318,391 |
Net Losses and Loss Expenses | 242,685 | 246,048 | 197,344 |
Amortization of Deferred Policy Acquisition Costs | 62,424 | 55,143 | 52,149 |
Other Underwriting Expenses | 61,631 | 51,635 | 52,817 |
Net Premiums Written | 404,879 | 349,895 | 329,116 |
Deferred Policy Acquisition Costs | 30,947 | 27,762 | |
Liability For Losses and Loss Expenses | 582,682 | 518,127 | |
Unearned Premiums | 266,297 | 231,990 | |
Personal Lines [Member] | |||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items] | |||
Net Premiums Earned | 370,613 | 403,367 | 384,124 |
Net Losses and Loss Expenses | 263,703 | 330,410 | 289,924 |
Amortization of Deferred Policy Acquisition Costs | 60,019 | 65,821 | 62,916 |
Other Underwriting Expenses | 52,931 | 61,635 | 63,721 |
Net Premiums Written | 347,722 | 394,121 | 400,023 |
Deferred Policy Acquisition Costs | 28,338 | 32,853 | |
Liability For Losses and Loss Expenses | 286,992 | 296,538 | |
Unearned Premiums | 243,850 | 274,539 | |
Investments [Member] | |||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items] | |||
Net Investment Income | $ 29,515 | $ 26,908 | $ 23,527 |