Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Feb. 14, 2017 | Jun. 30, 2016 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | UVE | ||
Entity Registrant Name | UNIVERSAL INSURANCE HOLDINGS, INC. | ||
Entity Central Index Key | 891,166 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 35,172,746 | ||
Entity Public Float | $ 605,585,706 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
ASSETS | ||
Cash and cash equivalents | $ 105,730 | $ 197,014 |
Restricted cash and cash equivalents | 2,635 | 2,635 |
Fixed maturities, at fair value | 584,361 | 416,083 |
Equity securities, at fair value | 50,803 | 42,214 |
Short-term investments, at fair value | 5,002 | 25,021 |
Investment real estate, net | 11,435 | 6,117 |
Prepaid reinsurance premiums | 124,385 | 114,673 |
Reinsurance recoverable | 106 | 22,853 |
Premiums receivable, net | 53,833 | 50,980 |
Other receivables | 5,824 | 4,979 |
Property and equipment, net | 32,162 | 27,065 |
Deferred policy acquisition costs, net | 64,912 | 60,019 |
Income taxes recoverable | 3,262 | 5,420 |
Deferred income tax asset, net | 10,674 | 13,912 |
Other assets | 4,883 | 4,563 |
Total assets | 1,060,007 | 993,548 |
LIABILITIES: | ||
Unpaid losses and loss adjustment expenses | 58,494 | 98,840 |
Unearned premiums | 475,756 | 442,366 |
Advance premium | 17,796 | 24,813 |
Accounts payable | 3,187 | 378 |
Reinsurance payable, net | 80,891 | 73,585 |
Other liabilities and accrued expenses | 37,665 | 36,424 |
Long-term debt | 15,028 | 24,050 |
Total liabilities | 688,817 | 700,456 |
Commitments and Contingencies (Note 15) | ||
STOCKHOLDERS' EQUITY: | ||
Cumulative convertible preferred stock, $.01 par value Authorized shares - 1,000 Issued shares - 10 and 10 Outstanding shares - 10 and 10 Minimum liquidation preference - 9.99 and $9.99 per share | ||
Common stock, $.01 par value Authorized shares - 55,000 Issued shares – 45,324 and 45,525 Outstanding shares – 35,052 and 35,110 | 453 | 455 |
Treasury shares, at cost - 10,272 and 10,415 | (86,982) | (80,802) |
Additional paid-in capital | 82,263 | 70,789 |
Accumulated other comprehensive income (loss), net of taxes | (6,408) | (4,006) |
Retained earnings | 381,864 | 306,656 |
Total stockholders' equity | 371,190 | 293,092 |
Total liabilities and stockholders' equity | $ 1,060,007 | $ 993,548 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2016 | Dec. 31, 2015 |
Statement Of Financial Position [Abstract] | ||
Cumulative convertible preferred stock, par value | $ 0.01 | $ 0.01 |
Cumulative convertible preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Cumulative convertible preferred stock, shares issued | 10,000 | 10,000 |
Cumulative convertible preferred stock, shares outstanding | 10,000 | 10,000 |
Cumulative convertible preferred stock, minimum liquidation preference | $ 9.99 | $ 9.99 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 55,000,000 | 55,000,000 |
Common stock, shares issued | 45,324,000 | 45,525,000 |
Common stock, shares outstanding | 35,052,000 | 35,110,000 |
Treasury stock, shares | 10,272,000 | 10,415,000 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
PREMIUMS EARNED AND OTHER REVENUES | |||
Direct premiums written | $ 954,617 | $ 883,409 | $ 789,577 |
Change in unearned premium | (33,390) | (46,617) | (12,260) |
Direct premium earned | 921,227 | 836,792 | 777,317 |
Ceded premium earned | (288,811) | (332,793) | (450,440) |
Premiums earned, net | 632,416 | 503,999 | 326,877 |
Net investment income (expense) | 9,540 | 5,155 | 2,375 |
Net realized gains (losses) on investments | 2,294 | 1,060 | 5,627 |
Commission revenue | 17,733 | 14,870 | 14,205 |
Policy fees | 16,880 | 15,440 | 13,982 |
Other revenue | 6,426 | 6,020 | 6,210 |
Total premiums earned and other revenues | 685,289 | 546,544 | 369,276 |
OPERATING COSTS AND EXPENSES | |||
Losses and loss adjustment expenses | 301,229 | 187,739 | 123,275 |
General and administrative expenses | 221,177 | 183,782 | 118,397 |
Total operating costs and expenses | 522,406 | 371,521 | 241,672 |
INCOME BEFORE INCOME TAXES | 162,883 | 175,023 | 127,604 |
Income tax expense | 63,473 | 68,539 | 54,616 |
NET INCOME | $ 99,410 | $ 106,484 | $ 72,988 |
Basic earnings per common share | $ 2.85 | $ 3.06 | $ 2.17 |
Weighted average common shares outstanding - Basic | 34,919 | 34,799 | 33,569 |
Diluted earnings per common share | $ 2.79 | $ 2.97 | $ 2.08 |
Weighted average common shares outstanding - Diluted | 35,650 | 35,884 | 35,150 |
Cash dividend declared per common share | $ 0.69 | $ 0.63 | $ 0.55 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net income | $ 99,410 | $ 106,484 | $ 72,988 | |
Other comprehensive income (loss) | [1] | (2,402) | (2,171) | (1,459) |
Comprehensive income (loss) | $ 97,008 | $ 104,313 | $ 71,529 | |
[1] | Represents change in fair value of available for sale investments, net of tax benefit of $1,486 thousand, $1,369 thousand and $916 thousand in years ended December 31, 2016, 2015 and 2014, respectively. |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock [Member] | Preferred Stock [Member] | Additional Paid-In Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Treasury Stock [Member] | |
Beginning Balance at Dec. 31, 2013 | $ 175,609 | $ 436 | $ 42,282 | $ 168,734 | $ (376) | $ (35,467) | ||
Beginning balance, shares at Dec. 31, 2013 | 43,641 | 30 | ||||||
Stock option exercises | (6,036) | $ 19 | 9,347 | (15,402) | ||||
Stock option exercises, shares | 1,900 | |||||||
Grants and vesting of restricted stock | (11,545) | $ 10 | (10) | (11,545) | ||||
Grants and vesting of restricted stock, shares | 950 | |||||||
Conversion of preferred stock | $ 1 | (1) | ||||||
Conversion of preferred stock, shares | 65 | (18) | ||||||
Purchases of treasury stock | (29,736) | $ (29,736) | ||||||
Purchases of treasury stock, shares | 2,392 | |||||||
Treasury shares reissued | (3,050) | $ 3,050 | ||||||
Retirement of treasury shares | $ (18) | (26,929) | $ 26,947 | |||||
Retirement of treasury shares, shares | (1,787) | 1,787 | ||||||
Share-based compensation | 12,342 | 12,342 | ||||||
Net income | 72,988 | 72,988 | ||||||
Change in net unrealized gains (losses) | [1] | (1,459) | (1,459) | |||||
Excess tax benefit (shortfall), net | [2] | 7,006 | 7,006 | |||||
Declaration of dividends | (19,253) | (19,253) | ||||||
Ending Balance at Dec. 31, 2014 | 199,916 | $ 448 | 40,987 | 222,469 | (1,835) | $ (62,153) | ||
Ending balance, shares at Dec. 31, 2014 | 44,769 | 12 | ||||||
Stock option exercises | (4,287) | $ 7 | 3,807 | (8,101) | ||||
Stock option exercises, shares | 751 | |||||||
Grants and vesting of restricted stock | (7,344) | $ 6 | (6) | (7,344) | ||||
Grants and vesting of restricted stock, shares | 615 | |||||||
Purchase of preferred stock | (256) | (256) | ||||||
Purchase of preferred stock, shares | (2) | |||||||
Purchases of treasury stock | (18,649) | $ (18,649) | ||||||
Purchases of treasury stock, shares | 748 | |||||||
Reclassification of contingently redeemable common stock to common stock | 19,000 | 19,000 | ||||||
Retirement of treasury shares | $ (6) | (15,439) | $ 15,445 | |||||
Retirement of treasury shares, shares | (610) | 610 | ||||||
Share-based compensation | 17,386 | 17,386 | ||||||
Net income | 106,484 | 106,484 | ||||||
Change in net unrealized gains (losses) | [1] | (2,171) | (2,171) | |||||
Excess tax benefit (shortfall), net | [2] | 5,310 | 5,310 | |||||
Declaration of dividends | (22,297) | (22,297) | ||||||
Ending Balance at Dec. 31, 2015 | 293,092 | $ 455 | 70,789 | 306,656 | (4,006) | $ (80,802) | ||
Ending balance, shares at Dec. 31, 2015 | 45,525 | 10 | ||||||
Stock option exercises | $ (5,332) | $ 1 | 905 | (6,238) | ||||
Stock option exercises, shares | 124 | 124 | ||||||
Purchases of treasury stock | $ (8,510) | $ (8,510) | ||||||
Purchases of treasury stock, shares | 441 | |||||||
Treasury shares reissued | 10,000 | 7,670 | $ 2,330 | |||||
Retirement of treasury shares | $ (3) | (6,235) | $ 6,238 | |||||
Retirement of treasury shares, shares | (325) | 325 | ||||||
Share-based compensation | 10,288 | 10,288 | ||||||
Net income | 99,410 | 99,410 | ||||||
Change in net unrealized gains (losses) | [1] | (2,402) | (2,402) | |||||
Excess tax benefit (shortfall), net | [2] | (1,154) | (1,154) | |||||
Declaration of dividends | (24,202) | (24,202) | ||||||
Ending Balance at Dec. 31, 2016 | $ 371,190 | $ 453 | $ 82,263 | $ 381,864 | $ (6,408) | $ (86,982) | ||
Ending balance, shares at Dec. 31, 2016 | 45,324 | 10 | ||||||
[1] | Represents change in fair value of available for sale investments, net of tax benefit of $1,486 thousand, $1,369 thousand and $916 thousand in years ended December 31, 2016, 2015 and 2014, respectively. | |||||||
[2] | Excess tax benefit (shortfall) relate to share-based compensation. |
CONSOLIDATED STATEMENTS OF STO7
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Statement Of Stockholders Equity [Abstract] | ||||
Tax benefit from AFS securities adjustment | [1] | $ 1,486 | $ 1,369 | $ 916 |
[1] | Represents change in fair value of available for sale investments, net of tax benefit of $1,486 thousand, $1,369 thousand and $916 thousand in years ended December 31, 2016, 2015 and 2014, respectively. |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Cash flows from operating activities: | |||
Net income | $ 99,410 | $ 106,484 | $ 72,988 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Bad debt expense | 406 | 611 | 431 |
Depreciation and amortization | 3,242 | 2,033 | 1,194 |
Amortization of share-based compensation | 10,288 | 17,386 | 12,342 |
Amortization of original issue discount on debt | 149 | 521 | 840 |
Accretion of deferred credit | (149) | (521) | (840) |
Book overdraft increase (decrease) | (5,924) | (9,023) | |
Net realized (gains) losses on investments | (2,294) | (1,060) | (5,627) |
Amortization of premium/accretion of discount, net | 3,481 | 1,831 | 2,116 |
Deferred income taxes | 4,724 | (693) | 1,118 |
Excess tax (benefits) shortfall from share-based compensation | 1,154 | (5,310) | (7,006) |
Other | 31 | 42 | 19 |
Net change in assets and liabilities relating to operating activities: | |||
Restricted cash and cash equivalents | (35) | ||
Prepaid reinsurance premiums | (9,712) | 75,832 | 50,709 |
Reinsurance recoverable | 22,747 | 32,334 | 52,660 |
Reinsurance receivable, net | 167 | 7,115 | (7,265) |
Premiums receivable, net | (3,249) | (385) | (4,911) |
Accrued investment income | (1,514) | (298) | (230) |
Other receivables | 1,087 | (1,783) | 12 |
Income taxes recoverable | 1,004 | 255 | 2,477 |
Deferred policy acquisition costs, net | (4,893) | (34,359) | (9,761) |
Other assets | (320) | (750) | (740) |
Unpaid losses and loss adjustment expenses | (40,346) | (35,513) | (24,869) |
Unearned premiums | 33,390 | 46,618 | 12,260 |
Accounts payable | 2,809 | (3,743) | 680 |
Reinsurance payable, net | 7,306 | 7,519 | (20,166) |
Income taxes payable | 3,510 | 6,239 | |
Other liabilities and accrued expenses | (505) | 625 | 2,774 |
Advance premium | (7,017) | 6,894 | (5,040) |
Net cash provided by (used in) operating activities | 121,396 | 219,271 | 123,346 |
Cash flows from investing activities: | |||
Proceeds from sale of property and equipment | 36 | 86 | 84 |
Purchases of property and equipment | (8,223) | (11,869) | (9,267) |
Payments to acquire a business | (1,000) | ||
Purchases of equity securities | (66,688) | (65,038) | (116,541) |
Purchases of fixed maturities | (320,131) | (178,198) | (106,885) |
Purchases of short-term investments | (87,538) | (50,000) | |
Purchases of investment real estate, net | (5,496) | (6,220) | |
Proceeds from sales of equity securities | 60,558 | 41,456 | 163,981 |
Proceeds from sales of fixed maturities | 86,018 | 38,379 | 17,153 |
Proceeds from sales of short-term investments | 12,500 | ||
Maturities of fixed maturities | 54,615 | 74,390 | 24,287 |
Maturities of short-term investments | 25,000 | 100,000 | |
Net cash provided by (used in) investing activities | (174,311) | (83,052) | (77,188) |
Cash flows from financing activities: | |||
Preferred stock dividend | (10) | (10) | (13) |
Common stock dividend | (24,192) | (22,287) | (19,240) |
Issuance of common stock | 119 | 511 | 73 |
Purchase of treasury stock | (8,510) | (18,649) | (29,736) |
Sale of treasury stock | 2,965 | ||
Purchase of preferred stock | (256) | ||
Proceeds received from issuance of contingently redeemable common stock | 19,000 | ||
Payments related to tax withholding for share-based compensation | (5,451) | (12,141) | (17,655) |
Excess tax benefits (shortfall) from share-based compensation | (1,154) | 5,310 | 7,006 |
Repayment of debt | (2,136) | (8,470) | (7,471) |
Borrowings under promissory note | 1,390 | ||
Net cash provided by (used in) financing activities | (38,369) | (54,602) | (48,036) |
Net increase (decrease) in cash and cash equivalents | (91,284) | 81,617 | (1,878) |
Cash and cash equivalents at beginning of period | 197,014 | 115,397 | 117,275 |
Cash and cash equivalents at end of period | 105,730 | 197,014 | 115,397 |
Supplemental cash and non-cash flow disclosures: | |||
Interest paid | 421 | 963 | 1,486 |
Income taxes paid | 63,378 | $ 65,383 | $ 44,769 |
Income tax refund | $ 5,633 |
Nature of Operations and Basis
Nature of Operations and Basis of Presentation | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Nature of Operations and Basis of Presentation | NOTE 1 – NATURE OF OPERATIONS AND BASIS OF PRESENTATION Nature of Operations, Basis of Presentation and Consolidation Universal Insurance Holdings, Inc. (“UVE”) is a Delaware corporation incorporated in 1990. UVE with its wholly-owned subsidiaries (the “Company”), is a vertically integrated insurance holding company performing all aspects of insurance underwriting, distribution and claims. Through its wholly-owned subsidiaries, Universal Property & Casualty Insurance Company (“UPCIC”) and American Platinum Property and Casualty Insurance Company (“APPCIC”), together referred to as the “Insurance Entities,” the Company is principally engaged in the property and casualty insurance business offered primarily through a network of independent agents. Risk from catastrophic losses is managed through the use of reinsurance agreements. The Company’s primary product is homeowners’ insurance currently offered in fourteen states as of December 31, 2016, including Florida, which comprises the vast majority of the Company’s in-force policies. See “— Note 5 (Insurance Operations) The Company generates revenues primarily from the collection of premiums and invests funds in excess of those retained for claims-paying obligations and insurance operations. Other significant sources of revenue include brokerage commissions collected from reinsurers or reinsurance programs placed by the Insurance Entities, policy fees collected from policyholders by our wholly-owned managing general agency subsidiary and payment plan fees charged to policyholders who choose to pay their premiums in installments. The consolidated financial statements have been prepared in conformity with generally accepted accounting principles in the United States of America (“GAAP”). The consolidated financial statements include the accounts of UVE and its wholly owned subsidiaries. All material intercompany balances and transactions have been eliminated in consolidation. To conform to current period presentation, certain amounts in the prior periods’ consolidated financial statements and notes have been reclassified. Such reclassifications were of an immaterial amount and had no effect on net income or stockholders’ equity. Consolidated Statement of Cash Flows – Additional Disclosure As discussed in “—Note 8 (Stockholders’ Equity)” Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. The Company’s primary areas of estimate are the recognition of premium revenues, liabilities for unpaid losses and loss adjustment expenses, provision for premium deficiency and reinsurance. Actual results could differ from those estimates. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | NOTE 2 – SIGNIFICANT ACCOUNTING POLICIES The significant accounting policies followed by the Company are summarized as follows: Cash and Cash Equivalents. The Company includes in cash equivalents all short-term, highly liquid investments that are readily convertible to known amounts of cash and have an original maturity of three months or less. These amounts are carried at cost, which approximates fair value. The Company excludes any net negative cash balances from cash and cash equivalents that the Company has with any single financial institution. These amounts represent outstanding checks not yet presented to the financial institution and are reclassified to liabilities and presented as book overdraft in the Company’s Consolidated Balance Sheets. Restricted Cash and Cash Equivalents. The Company classifies amounts of cash and cash equivalents that are restricted in terms of their use and withdrawal separately on the face the Consolidated Balance Sheets. See “— ,” for a discussion of the nature of the restrictions. Investment Securities, Available for Sale . Investment securities available for sale consist of fixed maturities, equity securities and short-term investments with maturities of greater than three months. Investment securities available for sale are recorded at fair value on the consolidated balance sheet. Unrealized gains and losses on securities available for sale are excluded from earnings and reported as a component of other comprehensive income, net of related deferred taxes until reclassified to earnings upon the consummation of sales transaction with an unrelated third party or when the decline in fair value is deemed other than temporary. The assessment of whether the impairment of a security’s fair value is other than temporary is performed using a portfolio review as well as a case-by-case review considering a wide range of factors. There are a number of assumptions and estimates inherent in evaluating impairments and determining if they are other than temporary, including: 1) the Company’s ability and intent to hold the investment for a period of time sufficient to allow for an anticipated recovery in value; 2) the expected recoverability of principal and interest; 3) the extent and length of time to which the fair value has been less than amortized cost for fixed maturity securities or cost for equity securities and short-term investments referred to as severity and duration; 4) the financial condition, near-term and long-term prospects of the issue or issuer, including relevant industry conditions and trends, and implications of rating agency actions and offering prices referred to as credit quality; and 5) the specific reasons that a security is in a significant unrealized loss position, including market conditions which could affect liquidity. Additionally, once assumptions and estimates are made, any number of changes in facts and circumstances could cause the Company to subsequently determine that an impairment is other than temporary, including: 1) general economic conditions that are worse than previously forecasted or that have a greater adverse effect on a particular issuer or industry sector than originally estimated; 2) changes in the facts and circumstances related to a particular issue or issuer’s ability to meet all of its contractual obligations; and 3) changes in facts and circumstances obtained that causes a change in our ability or intent to hold a security to maturity or until it recovers in value. Management’s intent and ability to hold securities is a determination that is made at each respective balance sheet date giving consideration to factors known to management for each individual issuer of securities such as credit quality and other publicly available information. Gains and losses realized on the disposition of investment securities available for sale are determined on the FIFO basis and credited or charged to income. Premium and discount on investment securities are amortized and accreted using the interest method and charged or credited to investment income. Investment Real Estate. Investment real estate is recorded at cost less accumulated depreciation. Depreciation is calculated on a straight-line basis over the estimated useful life of the assets. Real estate taxes, interest and other costs incurred during development and construction of non-income producing properties are capitalized. Income and expenses from income producing real estate are reported under net investment income. Investment real estate is evaluated for impairment when events or circumstances indicate the carrying value may not be recoverable. Premiums Receivable. Generally, premiums are collected prior to providing risk coverage, minimizing the Company’s exposure to credit risk. The Company performs a policy level evaluation to determine the extent the premiums receivable balance exceeds the unearned premiums balance. The Company then ages this exposure to establish an allowance for doubtful accounts based on prior experience. As of December 31, 2016 and 2015, the Company had recorded allowances for doubtful accounts in the amounts of $527 thousand and $344 thousand, respectively. Property and Equipment. Property and equipment is recorded at cost less accumulated depreciation. Depreciation is provided on the straight-line basis over the estimated useful life of the assets. Estimated useful life of all property and equipment ranges from three to twenty-seven-and-one-half years. Expenditures for improvements are capitalized and depreciated over the remaining useful life of the asset. Routine repairs and maintenance are expensed as incurred. Website development costs are capitalized and amortized over their estimated useful life. The Company reviews its property and equipment annually and whenever changes in circumstances indicate that the carrying amount may not be recoverable. Recognition of Premium Revenues. The Company recognizes revenue when realized or realizable and earned. Property and liability premiums are recognized as revenue on a pro rata basis over the policy term. The portion of premiums that will be earned in the future is deferred and reported as unearned premiums. The Company believes that its revenue recognition policies conform to GAAP. In the event policyholders cancel their policies, unearned premiums represent amounts that the Insurance Entities would refund policyholders. Accordingly, the Company determines unearned premiums by calculating the pro rata amount that would be due to the policyholders at a given point in time based upon the premiums owed over the life of each policy. Recognition of Commission Revenue and Policy Fees . Commission revenue generated from agency operations and the Managing General Agent (MGA)’s policy fee on all new and renewal insurance policies are recognized as income upon policy inception. Brokerage commission revenue earned on ceded reinsurance is recognized over the term of the reinsurance agreements. Recognition of Policyholder Payment Plan Fee Revenue. The Company offers its policyholders the option of paying their policy premiums in full at inception or in two or four installment payments. The Company charges fees to its policyholders that elect to pay their premium in installments and records such fees as revenue when the policyholder makes the installment payment election and the Company bills the fees to the policyholder. These fees are included in Other Revenue in the Company’s Consolidated Statements of Income. Deferred Policy Acquisition Costs . Certain costs incurred in connection with the successful acquisition and renewal of insurance business are deferred and amortized over the terms of the policies to which they are related. A portion of reinsurance ceding commissions received are deferred and amortized over the effective period of the related insurance policies. Deferred policy acquisition costs and deferred ceding commissions are netted for balance sheet presentation purposes. Goodwill. Goodwill arising from the acquisition of a business is initially measured at cost and not subject to amortization. We assess goodwill for potential impairments at the end of each fiscal year, or during the year if an event or other circumstance indicates that we may not be able to recover the carrying amount of the asset. Goodwill is included under Other Assets in the Consolidated Balance Sheets. Insurance Liabilities . Unpaid losses and loss adjustment expenses (“LAE”) are provided for as claims are incurred. The provision for unpaid losses and loss adjustment expenses includes: (1) the accumulation of individual case estimates for claims and claim adjustment expenses reported prior to the close of the accounting period; (2) estimates for unreported claims based on industry data; and (3) estimates of expenses for investigating and adjusting claims based on the experience of the Company and the industry. Inherent in the estimates of ultimate claims are expected trends in claim severity, frequency and other factors that may vary as claims are settled. The amount of uncertainty in the estimates for casualty coverage is significantly affected by such factors as the amount of claims experience relative to the development period, knowledge of the actual facts and circumstances and the amount of insurance risk retained. In addition, the Company’s policyholders are currently concentrated in South Florida, which is periodically subject to adverse weather conditions, such as hurricanes and tropical storms. The methods for making such estimates and for establishing the resulting liability are periodically reviewed, and any adjustments are reflected in current earnings. Provision for Premium Deficiency . It is the Company’s policy to evaluate and recognize losses on insurance contracts when estimated future claims and maintenance costs under a group of existing contracts will exceed anticipated future premiums. No accruals for premium deficiency were considered necessary as of December 31, 2016 and 2015. Reinsurance . Ceded written premium is recorded upon the effective date of the reinsurance contracts and earned over the contract period. Amounts recoverable from reinsurers are estimated in a manner consistent with the provisions of the reinsurance agreements and consistent with the establishment of the liability of the Company. Allowances are established for amounts deemed uncollectible if any. Income Taxes . Income tax provisions are based on the asset and liability method. Deferred federal and state income taxes have been provided for temporary differences between the tax basis of assets and liabilities and their reported amounts in the consolidated financial statements, net of valuation allowance if any. The Company reviews its deferred tax assets for recoverability. Income (Loss) Per Share of Common Stock . Basic earnings per share is computed by dividing the Company’s net income (loss) available to common stockholders, by the weighted-average number of shares of Common Stock outstanding during the period. Diluted earnings per share is computed by dividing the Company’s net income (loss) by the weighted average number of shares of Common Stock outstanding during the period and the impact of all dilutive potential common shares, primarily preferred stock, unvested shares and options. The dilutive impact of stock options and unvested shares is determined by applying the treasury stock method and the dilutive impact of the preferred stock is determined by applying the “if converted” method. Fair Value Measurements . The Company’s policy is to record transfers of assets and liabilities, if any, between Level 1 and Level 2 at their fair values as of the end of each reporting period, consistent with the date of the determination of fair value. Share-based Compensation. The Company accounts for share-based compensation based on the estimated grant-date fair value. The Company recognizes these compensation costs in general and administrative expenses and generally amortizes them on a straight-line basis over the requisite service period of the award, which is the vesting term. Individual tranches of performance-based awards are amortized separately since the vesting of each tranche is subject to independent annual measures. The fair value of stock option awards are estimated using the Black-Scholes option pricing model with the grant-date assumptions discussed in “— .” The fair value of the restricted share grants are determined based on the market price on the date of grant. Statutory Accounting. UPCIC and APPCIC prepare statutory financial statements in conformity with accounting practices prescribed or permitted by the Florida Office of Insurance Regulation (the “FLOIR”). The FLOIR requires that insurance companies domiciled in Florida prepare their statutory financial statements in accordance with the Manual (the “Manual”), as modified by the FLOIR. Accordingly, the admitted assets, liabilities and capital and surplus of UPCIC and APPCIC as of December 31, 2016 and 2015 and the results of operations and cash flows, for the years ended December 31, 2016, 2015 and 2014, have been determined in accordance with statutory accounting principles, but adjusted to GAAP for purposes of these financial statements. The statutory accounting principles are designed primarily to demonstrate the ability to meet obligations to policyholders and claimants and, consequently, differ in some respects from GAAP. New Accounting Pronouncements In May 2015, the Financial Accounting Standards Board (“FASB”) issued guidance addressing enhanced disclosure requirements for insurers relating to short-duration insurance contract claims and the unpaid claims liability rollforward for short-duration contracts. The disclosures are intended to provide users of financial statements with more transparent information about an insurance entity’s initial claim estimates and subsequent adjustments to those estimates, the methodologies and judgments used to estimate claims, and the timing, frequency, and severity of claims. The guidance is effective for annual reporting periods beginning after December 15, 2015. Early application is permitted. The Company adopted this guidance effective January 1, 2016. The adoption of this guidance results in additional disclosures but did not impact the Company’s results of operations, financial position or liquidity. |
Investments
Investments | 12 Months Ended |
Dec. 31, 2016 | |
Investments Debt And Equity Securities [Abstract] | |
Investments | NOTE 3 – INVESTMENTS Securities Available for Sale The following table provides the cost or amortized cost and fair value of securities available for sale as of the dates presented (in thousands): December 31, 2016 Cost or Gross Gross Amortized Unrealized Unrealized Cost Gains Losses Fair Value Fixed Maturities: U.S. government obligations and agencies $ 74,937 $ — $ (670 ) $ 74,267 Corporate bonds 192,328 402 (1,300 ) 191,430 Mortgage-backed and asset-backed securities 216,679 135 (2,038 ) 214,776 Municipal bonds 94,794 130 (3,727 ) 91,197 Redeemable preferred stock 12,723 125 (157 ) 12,691 Equity Securities: Common stock 214 — (121 ) 93 Mutual funds 53,900 407 (3,597 ) 50,710 Short-term investments 5,000 2 — 5,002 Total $ 650,575 $ 1,201 $ (11,610 ) $ 640,166 December 31, 2015 Cost or Gross Gross Amortized Unrealized Unrealized Cost Gains Losses Fair Value Fixed Maturities: U.S. government obligations and agencies $ 126,209 $ — $ (867 ) $ 125,342 Corporate bonds 126,421 137 (1,041 ) 125,517 Mortgage-backed and asset-backed securities 151,328 97 (1,265 ) 150,160 Redeemable preferred stock 9,665 429 (29 ) 10,065 Other 5,000 — (1 ) 4,999 Equity Securities: Common stock 10,991 15 (244 ) 10,762 Mutual funds 35,221 5 (3,774 ) 31,452 Short-term investments 25,011 10 — 25,021 Total $ 489,846 $ 693 $ (7,221 ) $ 483,318 The following table provides the credit quality of investment securities with contractual maturities or the issuer of such securities as of the dates presented (in thousands): December 31, 2016 December 31, 2015 % of Total % of Total Comparable Ratings Fair Value Fair Value Fair Value Fair Value AAA $ 131,260 22.3 % $ 103,097 23.4 % AA 275,480 46.7 % 189,600 43.0 % A 107,418 18.2 % 83,850 19.0 % BBB 67,263 11.4 % 41,408 9.4 % BB and Below 3,444 0.6 % 4,261 1.0 % No Rating Available 4,498 0.8 % 18,888 4.2 % Total $ 589,363 100.0 % $ 441,104 100.0 % The tables above include comparable credit quality ratings by Standard and Poor’s Rating Services, Inc., Moody’s Investors Service, Inc. and Fitch Ratings, Inc. The following table summarizes the cost or amortized cost and fair value of mortgage-backed and asset-backed securities as of the dates presented (in thousands): December 31, 2016 December 31, 2015 Cost or Cost or Amortized Amortized Cost Fair Value Cost Fair Value Mortgage-backed securities: Agency $ 110,724 $ 109,022 $ 74,353 $ 73,854 Non-agency 19,408 19,265 10,430 10,183 Asset-backed securities: Auto loan receivables 37,390 37,429 29,883 29,712 Credit card receivables 38,640 38,568 32,225 31,985 Other receivables 10,517 10,492 4,437 4,426 Total $ 216,679 $ 214,776 $ 151,328 $ 150,160 The following table summarizes the fair value and gross unrealized losses on securities available for sale, aggregated by major investment category and length of time that individual securities have been in a continuous unrealized loss position as of the dates presented (in thousands): December 31, 2016 Less Than 12 Months 12 Months or Longer Number of Unrealized Number of Unrealized Issues Fair Value Losses Issues Fair Value Losses Fixed maturities: U.S. government obligations and agencies 11 $ 70,453 $ (608 ) 2 $ 3,504 $ (62 ) Corporate bonds 116 96,379 (1,219 ) 4 3,250 (80 ) Mortgage-backed and asset-backed securities 73 149,928 (1,923 ) 5 9,660 (115 ) Municipal bonds 69 79,402 (3,726 ) — — — Redeemable preferred stock 50 6,340 (158 ) — — — Equity securities: Common stock 1 18 (7 ) 2 75 (115 ) Mutual funds 3 28,020 (774 ) 2 11,529 (2,823 ) Total 323 $ 430,540 $ (8,415 ) 15 $ 28,018 $ (3,195 ) December 31, 2015 Less Than 12 Months 12 Months or Longer Number of Unrealized Number of Unrealized Issues Fair Value Losses Issues Fair Value Losses Fixed maturities: U.S. government obligations and agencies 10 $ 121,912 $ (690 ) 2 $ 3,429 $ (177 ) Corporate bonds 101 90,717 (927 ) 6 4,789 (114 ) Mortgage-backed and asset-backed securities 51 118,743 (974 ) 6 13,902 (291 ) Redeemable preferred stock 5 764 (29 ) — — — Other 1 4,999 (1 ) — — — Equity securities: Common stock 3 8,690 (148 ) 2 93 (96 ) Mutual funds 3 13,192 (374 ) 1 7,867 (3,400 ) Total 174 $ 359,017 $ (3,143 ) 17 $ 30,080 $ (4,078 ) Evaluating Investments in OTTI As of December 31, 2016, the Company held fixed maturity, equity securities and short-term investments that were in an unrealized loss position as presented in the table above. For fixed maturity securities with significant declines in value, the Company performs quarterly fundamental credit analysis on a security-by-security basis, which includes consideration of credit quality and credit ratings, review of relevant industry analyst reports and other available market data. For fixed maturity, equity securities and short-term investments, the Company considers whether it has the intent and ability to hold the securities for a period of time sufficient to recover its cost basis. Where the Company lacks the intent and ability to hold to recovery, or believes the recovery period is extended, the security’s decline in fair value is considered other than temporary and is recorded in earnings. Based on our analysis, our fixed income portfolio is of high quality and we believe we will recover the amortized cost basis of our fixed income securities. We continually monitor the credit quality of our fixed income investments to assess if it is probable that we will receive our contractual or estimated cash flows in the form of principal and interest. Additionally, the Company considers management’s intent and ability to hold the securities until recovery and its credit analysis of the individual issuers of the securities. Based on this process and analysis, management has no reason to believe the unrealized losses for securities available for sale as of December 31, 2016 are other than temporary. As of December 31, 2016, the Company held approximately $11.6 million equity securities that were in an unrealized loss position twelve months or longer. The unrealized loss on these securities was $2.9 million. Based on our analysis, the company believes each security will recover in a reasonable period of time and the Company has the intent and ability to hold them until recovery. There were no OTTI losses recognized in the periods on the equity portfolio. The following table presents the amortized cost and fair value of investments with contractual maturities as of the date presented (in thousands): December 31, 2016 Cost or Amortized Cost Fair Value Due in one year or less $ 48,919 $ 48,920 Due after one year through five years 229,278 228,000 Due after five years through ten years 34,165 33,301 Due after ten years 54,697 51,675 Mortgage-backed and asset-backed securities 216,679 214,776 Perpetual maturity securities 12,723 12,691 Total $ 596,461 $ 589,363 Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay with or without penalty. The following table provides certain information related to securities available for sale during the periods presented (in thousands): Years Ended December 31, 2016 2015 Sales proceeds (fair value) $ 146,576 $ 92,335 Gross realized gains $ 2,329 $ 1,553 Gross realized losses $ (35 ) $ (493 ) The following table presents the components of net investment income, comprised primarily of interest and dividends, for the periods presented (in thousands): Years Ended December 31, 2016 2015 2014 Fixed maturities $ 9,523 $ 5,642 $ 3,329 Equity securities 1,414 1,143 988 Short-term investments 75 246 46 Other (1) 734 409 83 Total investment income 11,746 7,440 4,446 Less: Investment expenses (2) (2,206 ) (2,285 ) (2,071 ) Net investment (expense) income $ 9,540 $ 5,155 $ 2,375 (1) Includes interest earned on cash and cash equivalents and restricted cash and cash equivalents. Also includes investment income earned on real estate investments. (2) Includes bank fees, investment accounting and advisory fees, and expenses associated with real estate investments. Investment Real Estate Investment real estate consisted of the following as of the dates presented (in thousands): December 31, 2016 December 31, 2015 Income Producing: Investment real estate $ 6,918 $ 6,220 Less: Accumulated depreciation (281 ) (103 ) 6,637 6,117 Non-Income Producing: Properties under development 4,798 — Investment real estate, net $ 11,435 $ 6,117 |
Reinsurance
Reinsurance | 12 Months Ended |
Dec. 31, 2016 | |
Insurance [Abstract] | |
Reinsurance | NOTE 4 – REINSURANCE The Company seeks to reduce its risk of loss by reinsuring certain levels of risk in various areas of exposure with other insurance enterprises or reinsurers, generally as of the beginning of the hurricane season on June 1st of each year. The Company’s current reinsurance program consists of catastrophe excess of loss reinsurance, subject to the terms and conditions of the applicable agreements. The Company is responsible for insured losses related to catastrophes and other events in excess of coverage provided by its reinsurance program. The Company remains responsible for the settlement of insured losses irrespective of the failure of any of its reinsurers to make payments otherwise due to the Company. The Company eliminated the quota share ceded by UPCIC to its reinsurers beginning with the reinsurance program effective June 1, 2015. Under the quota share contracts that were effective June 1, 2014 through May 31, 2015, the quota share ceded by UPCIC to its reinsurers was 30%. By eliminating the quota share, the Company expects to increase its profitability by retaining all premiums. The elimination of the quota share also decreases the amount of losses and LAE that may be ceded by UPCIC and effectively increases the amount of risk retained by UPCIC and the Company. The elimination of the quota share also eliminates ceding commissions earned from the Company’s quota share reinsurer during the contract term and eliminates deferred ceding commissions, netted against deferred policy acquisition costs. The following table presents quota-share cession rates by reinsurance program and the years they were in effect: Reinsurance Program Cession Rate June 2012 - May 2013 45% June 2013 - May 2014 45% June 2014 - May 2015 30% June 2015 - May 2016 0% June 2016 - May 2017 0% Amounts recoverable from reinsurers are estimated in a manner consistent with the terms of the reinsurance contracts. Reinsurance premiums, losses and LAE are accounted for on a basis consistent with those used in accounting for the original policies issued and the terms of the reinsurance contracts. Ceding commissions received in connection with quota share reinsurance are deferred and netted against deferred policy acquisition costs and amortized over the effective period of the related insurance policies. In order to reduce credit risk for amounts due from reinsurers, the Insurance Entities seek to do business with financially sound reinsurance companies and regularly evaluate the financial strength of all reinsurers used. The following table presents ratings from rating agencies and the unsecured amounts due from the Company’s reinsurers whose aggregate balance exceeded 3% of the Company’s stockholders’ equity as of the dates presented (in thousands): Ratings as of December 31, 2016 Standard and Poor's Moody's Due from as of AM Best Rating Investors December 31, Reinsurer Company Services Service, Inc. 2016 2015 Florida Hurricane Catastrophe Fund n/a n/a n/a $ 46,364 $ 42,086 Odyssey Reinsurance Company A A- A3 — 18,742 Total (1) $ 46,364 $ 60,828 (1) Amounts represent prepaid reinsurance premiums, reinsurance receivables, and net recoverables for paid and unpaid losses, including incurred but not reported reserves, loss adjustment expenses, and offsetting reinsurance payables. n/a No rating available, because entity is not rated. The Company’s reinsurance arrangements had the following effect on certain items in the Consolidated Statements of Income for the periods presented (in thousands): For the Year Ended December 31, 2016 Losses and Loss Premiums Premiums Adjustment Written Earned Expenses Direct $ 954,617 $ 921,227 $ 303,036 Ceded (298,523 ) (288,811 ) (1,807 ) Net $ 656,094 $ 632,416 $ 301,229 For the Year Ended December 31, 2015 Losses and Loss Premiums Premiums Adjustment Written Earned Expenses Direct $ 883,409 $ 836,792 $ 214,491 Ceded (256,961 ) (332,793 ) (26,752 ) Net $ 626,448 $ 503,999 $ 187,739 For the Year Ended December 31, 2014 Losses and Loss Premiums Premiums Adjustment Written Earned Expenses Direct $ 789,577 $ 777,317 $ 199,181 Ceded (399,730 ) (450,440 ) (75,906 ) Net $ 389,847 $ 326,877 $ 123,275 The following prepaid reinsurance premiums and reinsurance recoverable and receivable are reflected in the Consolidated Balance Sheets as of the dates presented (in thousands): As of December 31, 2016 2015 Prepaid reinsurance premiums $ 124,385 $ 114,673 Reinsurance recoverable on unpaid losses and LAE $ 106 $ 13,540 Reinsurance recoverable (payable) on paid losses (1,532 ) 9,313 Reinsurance receivable, net 186 353 Reinsurance recoverable (payable) and receivable $ (1,240 ) $ 23,206 |
Insurance Operations
Insurance Operations | 12 Months Ended |
Dec. 31, 2016 | |
Insurance [Abstract] | |
Insurance Operations | NOTE 5 – INSURANCE OPERATIONS Deferred Policy Acquisition Costs, net The Company defers certain costs in connection with written policies, called Deferred Policy Acquisition Costs (“DPAC”), net of corresponding amounts of ceded reinsurance commissions, called Deferred Reinsurance Ceding Commissions (“DRCC”). Net DPAC is amortized over the effective period of the related insurance policies. The following table presents the beginning and ending balances and the changes in DPAC, net of DRCC, for the periods presented (in thousands): Years Ended December 31, 2016 2015 2014 DPAC, beginning of year $ 60,019 $ 54,603 $ 54,099 Capitalized Costs 130,243 116,954 108,072 Amortization of DPAC (125,350 ) (111,538 ) (107,568 ) DPAC, end of year $ 64,912 $ 60,019 $ 54,603 DRCC, beginning of year $ — $ 28,943 $ 38,200 Ceding Commissions Written — (5,276 ) 64,810 Earned Ceding Commissions — (23,667 ) (74,067 ) DRCC, end of year $ — $ — $ 28,943 DPAC (DRCC), net, beginning of year $ 60,019 $ 25,660 $ 15,899 Capitalized Costs, net 130,243 122,230 43,262 Amortization of DPAC (DRCC), net (125,350 ) (87,871 ) (33,501 ) DPAC (DRCC), net, end of year $ 64,912 $ 60,019 $ 25,660 Regulatory Requirements and Restrictions The Insurance Entities are subject to regulations and standards of the FLOIR. UPCIC also is subject to regulations and standards of regulatory authorities in other states where it is licensed, although as a Florida-domiciled insurer its principal regulatory authority is the FLOIR. These standards require the Insurance Entities to maintain specified levels of statutory capital and restrict the timing and amount of dividends and other distributions that may be paid by the Insurance Entities to the parent company. Except in the case of extraordinary dividends, these standards generally permit dividends to be paid from statutory unassigned surplus of the regulated subsidiary and are limited based on the regulated subsidiary’s level of statutory net income and statutory capital and surplus. The maximum dividend that may be paid by UPCIC and APPCIC to their immediate parent company, Universal Insurance Holding Company of Florida (“UVECF”), without prior regulatory approval is limited by the provisions of Florida Statutes. These dividends are referred to as “ordinary dividends.” However, if the dividend, together with other dividends paid within the preceding twelve months, exceeds this statutory limit or is paid from sources other than earned surplus, the entire dividend is generally considered an “extraordinary dividend” and must receive prior regulatory approval. In accordance with Florida Statutes, and based on the calculations performed by the Company as of December 31, 2016, UPCIC has the capacity to pay ordinary dividends of $57.7 million during 2017. APPCIC does not have the capacity to pay ordinary dividends during 2017. For the year ended December 31, 2016, no dividends were paid from UPCIC or APPCIC to UVECF. Dividends paid to the shareholders of UVE in 2016 have been paid from the earnings of UVE and its non-insurance subsidiaries. The Florida Insurance Code requires insurance companies to maintain capitalization equivalent to the greater of ten percent of the insurer’s total liabilities or $10.0 million. The following table presents the amount of capital and surplus calculated in accordance with statutory accounting principles, which differ from GAAP, and an amount representing ten percent of total liabilities for both UPCIC and APPCIC as of the dates presented (in thousands): As of December 31, 2016 2015 Ten percent of total liabilities UPCIC $ 57,560 $ 55,928 APPCIC $ 464 $ 463 Statutory capital and surplus UPCIC $ 313,753 $ 256,987 APPCIC $ 17,280 $ 14,777 As of the dates in the table above, both UPCIC and APPCIC exceeded the minimum statutory capitalization requirement. UPCIC also met the capitalization requirements of the other states in which it is licensed as of December 31, 2016. UPCIC and APPCIC are also required to adhere to prescribed premium-to-capital surplus ratios and have met those requirements at such dates. Through UVECF, the Insurance Entities’ parent company, UVE recorded capital contributions for the periods presented (in thousands): Years Ended December 31, 2016 2015 2014 Capital Contributions $ 2,000 $ — $ — UVECF made this contribution to APPCIC’s capital in conjunction with APPCIC’s request for FLOIR approval to transact commercial residential insurance products in Florida. The FLOIR granted APPCIC’s request. UPCIC and APPCIC are required annually to comply with the NAIC risk-based capital (“RBC”) requirements. RBC requirements prescribe a method of measuring the amount of capital appropriate for an insurance company to support its overall business operations in light of its size and risk profile. NAIC RBC requirements are used by regulators to determine appropriate regulatory actions relating to insurers who show signs of weak or deteriorating condition. As of December 31, 2016, based on calculations using the appropriate NAIC RBC formula, UPCIC’s and APPCIC’s reported total adjusted capital was in excess of the requirements. The Insurance Entities are required by various state laws and regulations to maintain certain assets in depository accounts. The following table represents assets held by insurance regulators as of the dates presented (in thousands): As of December 31, 2016 2015 Restricted cash and cash equivalents $ 2,635 $ 2,635 Investments $ 3,952 $ 3,876 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2016 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment | NOTE 6 – PROPERTY AND EQUIPMENT Property and equipment consisted of the following as of the dates presented (in thousands): As of December 31, 2016 2015 Land $ 4,489 $ 3,987 Building 17,633 17,806 Computers 5,577 5,118 Furniture 1,381 1,284 Automobiles and other vehicles 5,523 5,096 Software 2,035 706 Total 36,638 33,997 Less: Accumulated depreciation (8,527 ) (7,173 ) Net of accumulated deprecation 28,111 26,824 Construction in progress 4,051 241 Property and equipment, net $ 32,162 $ 27,065 Depreciation and amortization was $3.1 million, $1.9 million and $1.2 million for the years ended December 31, 2016, 2015 and 2014, respectively. The following table provides realized gains (losses) on the disposal of property and equipment during the periods presented (in thousands): For the Years Ended December 31, 2016 2015 2014 Realized gain (loss) on disposal $ (31 ) $ (26 ) $ (19 ) |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | NOTE 7 – LONG-TERM DEBT Long-term debt consists of the following as of the dates presented (in thousands): As of December 31, 2016 2015 Surplus note $ 14,338 $ 15,809 Term loan — 6,851 Promissory note 690 1,390 Total $ 15,028 $ 24,050 Surplus Note On November 9, 2006, UPCIC entered into a $25.0 million surplus note with the State Board of Administration of Florida (the “SBA”) under Florida’s Insurance Capital Build-Up Incentive Program (the “ICBUI”). The surplus note has a twenty-year term and accrues interest, adjusted quarterly based on the 10-year Constant Maturity Treasury Index. The carrying amount of the surplus note is included in the statutory capital and surplus of UPCIC of approximately $14.3 million as of December 31, 2016. The effective interest rate paid on the surplus note was 1.88%, 2.21% and 2.73% for years ended December 31, 2016, 2015 and 2014, respectively. Any payment of principal or interest by UPCIC on the surplus note must be approved by the Commissioner of the OIR. Quarterly principal payments of $368 thousand are due through 2026. Aggregate principal payments of $1.5 million were made during each of the years ended December 31, 2016, 2015 and 2014. UPCIC is in compliance with each of the loan’s covenants as implemented by rules promulgated by the SBA. An event of default will occur under the surplus note, as amended, if UPCIC: (i) defaults in the payment of the surplus note; (ii) fails to submit quarterly filings to the FLOIR; (iii) fails to maintain at least $50 million of surplus during the term of the surplus note, except for certain situations; (iv) misuses proceeds of the surplus note; (v) makes any misrepresentations in the application for the program; (vi) pays any dividend when principal or interest payments are past due under the surplus note; or (vii) fails to maintain a level of surplus and reinsurance sufficient to cover in excess of UPCIC’s 1-in-100 year probable maximum loss as determined by a hurricane loss model accepted by the Florida Commission on Hurricane Loss Projection Methodology as certified by the FLOIR annually. To avoid a penalty rate, UPCIC must maintain either a ratio of net written premium to surplus of 2:1 or a ratio of gross written premiums to surplus of 6:1 according to a calculation method set forth in the surplus note. As of December 31, 2016, UPCIC’s net written premium to surplus ratio and gross written premium to surplus ratio were in excess of the required minimums and, therefore, UPCIC is not subject to increases in interest rates. Term Loan On May 23, 2013, UVE entered into a $20 million unsecured term loan agreement and related term note (the “Term Loan”) with RenaissanceRe Ventures Ltd. (“RenRe Ventures”). The Term Loan provided an interest at the rate of 0.50% per annum and matured on the earlier of May 23, 2016 or the date that all principal under the Term Loan was pre-paid or deemed paid in full. The Term Loan was amortized over the three-year term and UVE could elect whether to prepay the loan without penalty. Principal was paid annually on the anniversary of the closing date in three annual installments and interest was payable in arrears on the same dates as the principal payments. The Term Loan contained financial covenants. The stated interest rate of the Term Loan of 0.50% was below the Company’s borrowing rate resulting in imputed interest and an original issue discount computed by calculating the present value of the future principal and interest payments which utilized the Company’s borrowing rate. Concurrent with the establishment of the original issue discount, the Company recorded a deferred credit, a component of other liabilities and accrued expenses, for an equal amount against premium payments the Company made in connection with a catastrophe risk-linked transaction contract entered into with RenRe on the same date and with the same maturity date as the Term Loan. The original issue discount was amortized to interest expense over the life of the Term Loan and the deferred credit was amortized as a reduction in insurance expense, a component of general and administrative expenses, over the life of a covered loss index swap with RenRe. On April 28, 2016, the Company entered into a Purchase and Exchange Agreement with RenRe, pursuant to which the Company sold 583,771 shares of UVE common stock in a private placement to RenRe Ventures at a price of $17.13 per share for total consideration of $10.0 million, which was comprised of $2.965 million in cash and $7.035 million in cancellation of outstanding indebtedness, including accrued interest. See “—Note 8 (Stockholders’ Equity)” The following table provides the principal amount and unamortized original issue discount of the Term Loan as of the dates presented (in thousands): As of December 31, 2016 2015 Principal amount $ — $ 7,000 Less: Unamortized discount — (149 ) Term Loan, net of unamortized discount $ — $ 6,851 Through the interest rate payment of 0.50% per annum and the amortization of the discount, the effective interest rate on the Term Loan was 5.99%. Amortization of the original issue discount is included in interest expense, a component of general and administrative expenses, in the Consolidated Statements of Income and was $149 thousand $521 thousand and $840 thousand for the years ended December 31, 2016, 2015 and 2014, respectively. Unsecured Line of Credit On March 29, 2013, UVE entered into a revolving loan agreement and related revolving note (the “DB Loan”) with Deutsche Bank Trust Company Americas (“Deutsche Bank”), which was amended in July 2015. The DB Loan makes available to UVE an unsecured line of credit in an aggregate amount not to exceed $15.0 million. Draws under the DB Loan have a maturity date of July 31, 2017 and carry an interest rate of LIBOR plus a margin of 5.50% or Deutsche Bank’s prime rate plus a margin of 3.50%, at the election of UVE. The DB Loan contains certain covenants and restrictions applicable while amounts are outstanding thereunder, including limitations with respect to our indebtedness, liens, distributions, mergers or dispositions of assets, organizational structure, transactions with affiliates and business activities. As of December 31, 2016, UVE was in compliance with all such covenants. UVE had not drawn any amounts under the unsecured line of credit as of December 31, 2016. Should UVE default on the DB Loan, it will be prohibited from paying dividends to its shareholders. Maturities The following table provides an estimate of principal payments to be made for the amounts due on the surplus note and the Term Loan as of December 31, 2016 (in thousands): 2017 $ 2,161 2018 1,471 2019 1,471 2020 1,471 2021 1,471 Thereafter 6,983 Total $ 15,028 Interest Expense Interest expense was $0.4 million, $1.0 million, and $1.5 million for the years ended December 31, 2016, 2015 and 2014, respectively. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Stockholders' Equity | NOTE 8 – STOCKHOLDERS’ EQUITY Cumulative Convertible Preferred Stock As of December 31, 2016 and 2015, the Company had shares outstanding of Series A Preferred Stock. Each share of Series A Preferred Stock is convertible by the Company into shares of Common Stock. The following table provides certain information for the convertible Series A preferred stock as of the dates presented (in thousands, except conversion factor): As of December 31, 2016 2015 Shares issued and outstanding 10 10 Conversion factor 2.50 2.50 Common shares resulting if converted 25 25 The Series A Preferred Stock pays a cumulative dividend of $0.25 per share per quarter. The Company declared and paid aggregate dividends to holders of record of the Company’s Series A Preferred Stock of $10 thousand for each of the years ended December 31, 2016 and 2015. Common Stock and Contingently Redeemable Common Stock The following table summarizes the activity relating to shares of the Company’s Common Stock and Contingently Redeemable Common Stock during the periods presented (in thousands): Issued Treasury Outstanding Shares Shares Shares Balance, as of December 31, 2013 43,641 (8,275 ) 35,366 Conversion of preferred stock 65 — 65 Shares repurchased — (2,392 ) (2,392 ) Treasury shares reissued and classified as contingently redeemable common stock (1) — 1,000 1,000 Options exercised 1,900 — 1,900 Restricted stock grant 950 — 950 Shares acquired through cashless exercise (2) — (1,787 ) (1,787 ) Shares cancelled (1,787 ) 1,787 — Balance, as of December 31, 2014 44,769 (9,667 ) 35,102 Shares repurchased — (748 ) (748 ) Options exercised 751 — 751 Restricted stock grant 615 — 615 Shares acquired through cashless exercise (2) — (610 ) (610 ) Shares cancelled (610 ) 610 — Balance, as of December 31, 2015 45,525 (10,415 ) 35,110 Shares repurchased — (441 ) (441 ) Shares reissued — 584 584 Options exercised 124 — 124 Shares acquired through cashless exercise (2) — (325 ) (325 ) Shares cancelled (325 ) 325 — Balance, as of December 31, 2016 45,324 (10,272 ) 35,052 (1) Privately negotiated transaction at $19.00 per share, subject to holding period restrictions as of December 31, 2014. Subsequent to December 31, 2014, such restrictions were removed and contingently redeemable common stock was reclassified to common stock. (2) All shares acquired represent shares tendered to cover the strike price for options and tax withholdings on the intrinsic value of options exercised or restricted stock (as defined in “— Note 9 (Share-Based Compensation) In April 2016, the Company sold 583,771 shares of UVE common stock in a private placement to RenRe Ventures at a price of $17.13 per share for total consideration of $10 million, which was comprised of $2.965 million in cash and $7.035 million in cancellation of outstanding indebtedness, including accrued interest. See “—Note 7 (Long-Term Debt)” In June 2016, UVE announced that its Board of Directors authorized a share repurchase program under which UVE may repurchase in the open market in compliance with the Exchange Act Rule 10b-18 up to $20.0 million of its outstanding shares of common stock through December 31, 2017. UVE repurchased 98,929 shares, at an aggregate price of approximately $2.1 million, pursuant to such repurchase program through December 2016. During the year ended December 31, 2016, UVE repurchased an aggregate of 441,036 shares of its common stock in the open market in compliance with Rule 10b-18 under the Securities Exchange Act of 1934, as amended, at a total cost of $8.5 million. Dividends Declared The Company declared dividends on its outstanding shares of common stock to its shareholders of record as follows for the periods presented (in thousands, except per share amounts): For the Years Ended December 31, 2016 2015 2014 Per Share Aggregate Per Share Aggregate Per Share Aggregate Amount Amount Amount Amount Amount Amount First Quarter $ 0.14 $ 4,915 $ 0.12 $ 4,237 $ 0.10 $ 3,464 Second Quarter $ 0.14 $ 4,913 $ 0.12 $ 4,283 $ 0.10 $ 3,502 Third Quarter $ 0.14 4,903 $ 0.12 $ 4,275 $ 0.10 $ 3,429 Fourth Quarter $ 0.27 9,461 $ 0.27 $ 9,492 $ 0.25 $ 8,845 Applicable provisions of the Delaware General Corporation Law may affect the ability of the Company to declare and pay dividends on its Common Stock. In particular, pursuant to the Delaware General Corporation Law, a company may pay dividends out of its surplus, as defined, or out of its net profits, for the fiscal year in which the dividend is declared and/or the preceding year. Surplus is defined in the Delaware General Corporation Law to be the excess of net assets of the company over capital. Capital is defined to be the aggregate par value of shares issued. Moreover, the ability of the Company to pay dividends, if and when declared by its Board of Directors, may be restricted by regulatory limits on the amount of dividends, which the Insurance Entities are permitted to pay the Company. Restrictions limiting the payment of dividends by UVE UVE pays dividends to shareholders, which are funded by earnings on investments and distributions from the earnings of its consolidated subsidiaries. Generally, other than as disclosed above and in “— Note 7 (Long-Term Debt) Note 5 (Insurance Operations) |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Share-Based Compensation | NOTE 9 – SHARE-BASED COMPENSATION Equity Compensation Plan Under the Company’s 2009 Omnibus Incentive Plan, as amended (the “Incentive Plan”), 2,518,131 shares remained reserved for issuance and were available for new awards under the Incentive Plan as of December 31, 2016. Awards under the Incentive Plan may include incentive stock options, non-qualified stock option awards (“Stock Option”), stock appreciation rights, non-vested shares of Common Stock (“Restricted Stock”), restricted stock units, performance share units (“PSUs”), other share-based awards and cash-based incentive awards. Awards under the Incentive Plan may be granted to employees, directors, consultants or other persons providing services to the Company or its affiliates. The Incentive Plan also provides for awards that are intended to qualify as “performance-based compensation” in order to preserve the deductibility of such compensation by the Company under Section 162(m) of the Internal Revenue Code. The following table provides certain information related to Stock Options, Restricted Stock, and PSUs during the year ended December 31, 2016 (in thousands, except per share data): For the Year Ended December 31, 2016 Stock Options Restricted Stock Performance Share Units Weighted Weighted Weighted Average Weighted Average Average Exercise Aggregate Average Grant Date Number Grant Date Number of Price per Intrinsic Remaining Number Fair Value of Share Fair Value Options Share (1) Value Term of Shares (2) per Share Units (2) per Share Outstanding as of December 31, 2015 2,269 $ 13.22 615 $ 26.04 — $ — Granted 1,114 19.56 — — 173 23.18 Forfeited — — n/a n/a n/a n/a Exercised (124 ) 7.29 n/a n/a n/a n/a Vested n/a n/a (615 ) 26.04 — — Expired (45 ) 4.70 n/a n/a n/a n/a Outstanding as of December 31, 2016 3,214 $ 15.77 $ 40,589 5.05 — $ — 173 $ 23.18 Exercisable as of December 31, 2016 1,249 $ 11.23 $ 21,438 2.49 (1) Unless otherwise specified, such as in the case of the exercise of Stock Options, the per share prices were determined using the closing price of the Company’s Common Stock as quoted on the exchanges on which the Company was listed. Shares issued upon exercise of options represent original issuances in private transactions pursuant to Section 4(2) of the Securities Act of 1933, (2) All shares outstanding as of December 31, 2016 are expected to vest. n/a Not applicable The following table provides certain information in connection with the Company’s share-based compensation arrangements for the periods presented (in thousands): Years Ended December 31, 2016 2015 2014 Compensation expense: Stock options $ 3,641 $ 1,389 $ 675 Restricted stock 3,433 15,997 11,667 Performance share units 3,214 — — Total $ 10,288 $ 17,386 $ 12,342 Deferred tax benefits: Stock options $ 1,392 $ 532 $ 260 Restricted stock 1,312 4,816 83 Performance share units 1,229 — — Total $ 3,933 $ 5,348 $ 343 Realized tax benefits: Stock options $ 724 $ 5,369 $ 7,321 Restricted stock 4,326 — 967 Performance share units — — — Total $ 5,050 $ 5,369 $ 8,288 Excess tax benefits (shortfall): Stock options $ 642 $ 5,310 $ 6,472 Restricted stock (1,796 ) — 534 Performance share units — — — Total $ (1,154 ) $ 5,310 $ 7,006 Weighted average fair value per option or share: Stock option grants $ 6.01 $ 6.34 $ 3.39 Restricted stock grants $ — $ 26.04 $ 12.88 Performance share unit grants $ 23.18 $ — $ — Intrinsic value of options exercised $ 1,894 $ 14,734 $ 18,979 Fair value of restricted stock vested $ 11,319 $ 17,505 $ 28,350 Cash received for strike price and tax withholdings $ 119 $ 519 $ 73 Shares acquired through cashless exercise (1) 325 611 1,787 Value of shares acquired through cashless exercise (1) $ 6,238 $ 15,445 $ 26,947 (1) All shares acquired represent shares tendered to cover the strike price for options and tax withholdings on the intrinsic value of options exercised or Restricted Stock vested. These shares have been cancelled by the Company. The following table provides the amount of unrecognized compensation expense as of the most recent balance sheet date and the weighted average period over which those expenses will be recorded for both Stock Options, Restricted Stock, and PSUs (dollars in thousands): As of December 31, 2016 Stock Restricted Performance Options Stock Share Units Unrecognized expense $ 7,854 $ — $ 786 Weighted average remaining years 1.92 — 1.56 Stock Options Stock Options granted by the Company generally expire between 5 to 10 years from the grant date and generally vest over a 1 to 3 year service period commencing on the grant date. The Company used the modified Black-Scholes model to estimate the fair value of employee Stock Options on the date of grant utilizing the assumptions noted below. The risk-free rate is based on the U.S. Treasury bill yield curve in effect at the time of grant for the expected term of the option. The expected term of options granted represents the period of time that the options are expected to be outstanding. Expected volatilities are based on historical volatilities of our Common Stock. The dividend yield was based on expected dividends at the time of grant. The following table provides the assumptions utilized in the Black-Scholes model for Stock Options granted during the periods presented: Years Ended December 31, 2016 2015 2014 Weighted-average risk-free interest rate 1.40 % 0.54 % 0.48 % Expected term of option in years 5.44 3.38 2.98 Weighted-average volatility 45.2 % 44.3 % 40.3 % Dividend yield 3.4 % 3.4 % 3.9 % Weighted average grant date fair value per share $ 6.01 $ 6.34 $ 3.39 Restricted Stock Grants Restricted Stock grants are awarded to certain employees in consideration for services rendered pursuant to terms of employment agreements and or to provide to those employees with a continued incentive to share in the success of the Company. Restricted Stock generally vests over a three year service period commencing on the grant date. Performance Share Units PSUs are awarded to certain employees in consideration for services rendered pursuant to terms of employment agreements and to provide to those employees with a continued incentive to share in the success of the Company. Each performance share unit has a value equal to one share of common stock and generally vests over a three year service period commencing on the grant date. |
Employee Benefit Plan
Employee Benefit Plan | 12 Months Ended |
Dec. 31, 2016 | |
Postemployment Benefits [Abstract] | |
Employee Benefit Plan | NOTE 10 – EMPLOYEE BENEFIT PLAN Effective January 1, 2009, the Company adopted a qualified retirement plan covering substantially all employees. It is designed to help the employees meet their financial needs during their retirement years. Eligibility for participation in the plan is generally based on employee’s date of hire or on completion of a specified period of service. Employer contributions to this plan are made in cash. The plan titled the “Universal Property & Casualty 401(K) Profit Sharing Plan and Trust” (the “401(k) Plan”) is a defined contribution plan that allows employees to defer compensation through contributions to the 401(k) Plan. The contributions are invested on the employees’ behalf, and the benefits paid to employees are based on contributions and any earnings or loss. The 401(k) Plan includes a Company contribution of 100 percent of each eligible participant’s contribution that does not exceed five percent of their compensation during the 401(k) Plan year. The Company may make additional profit-sharing contributions. However, no additional profit-sharing contribution was made during the years ended December 31, 2016, 2015 and 2014. The Company accrued for aggregate contributions of approximately $1.2 million, $1.0 million and $0.8 million to the 401(k) Plan during the years ended December 31, 2016, 2015 and 2014, respectively. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2016 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | NOTE 11 – RELATED PARTY TRANSACTIONS Scott P. Callahan, a director of the Company, provided the Company with consulting services and advice with respect to the Company’s reinsurance and related matters through SPC Global RE Advisors LLC, an entity affiliated with Mr. Callahan. The Company entered into the consulting agreement with SPC Global RE Advisors LLC effective June 6, 2013. The Company and SPC Global RE Advisors LLC terminated the consulting agreement on September 18, 2015 by mutual consent. The following table provides payments made by the Company to related parties for the periods presented (in thousands): Year Ended December 31, 2016 2015 2014 SPC Global RE Advisors LLC $ — $ 90 $ 120 There were no amounts due to SPC Global RE Advisors LLC as of December 31, 2015. Payments due to SPC Global RE Advisors LLC were generally made in the month the services were provided. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 12 – INCOME TAXES Significant components of the income tax provision are as follows for the periods presented (in thousands): For the Years Ended December 31, 2016 2015 2014 Current: Federal $ 50,645 $ 61,830 $ 47,245 State and local 8,105 7,402 7,877 Total current expense (benefit) 58,750 69,232 55,122 Deferred: Federal 4,106 (775 ) (152 ) State and local 617 82 (354 ) Total deferred expense (benefit) 4,723 (693 ) (506 ) Income tax expense $ 63,473 $ 68,539 $ 54,616 The following table reconciles the statutory federal income tax rate to the Company’s effective tax rate for the periods presented (in thousands): For the Years Ended December 31, 2016 2015 2014 Expected provision at federal statutory tax rate 35.0 % 35.0 % 35.0 % Increases (decreases) resulting from: Disallowed meals & entertainment 0.3 % 0.2 % 0.4 % Disallowed compensation 0.4 % 1.1 % 4.2 % State income tax, net of federal tax benefit 3.2 % 3.4 % 3.6 % Effect of change in rate — 0.1 % — Other, net 0.1 % (0.6 %) (0.4 %) Total income tax expense (benefit) 39.0 % 39.2 % 42.8 % Deferred income taxes represent the temporary differences between the GAAP and tax basis of the Company’s assets and liabilities and available tax loss and credit carryforwards. As of December 31, 2016 and 2015, the significant components of the Company’s deferred taxes consisted of the following (in thousands): As of December 31, 2016 2015 Deferred income tax assets: Unearned premiums $ 26,861 $ 25,082 Advanced premiums 1,314 1,859 Unpaid losses and LAE 374 1,105 Regulatory assessments — 31 Share-based compensation 3,256 5,535 Accrued wages 297 164 Allowance for uncollectible receivables 284 214 Additional tax basis of securities 51 51 Capital loss carryforwards 759 850 Other comprehensive income 3,982 2,521 Other 131 — Total deferred income tax assets 37,309 37,412 Valuation allowance (133 ) — Deferred income tax assets, net of valuation allowance 37,176 37,412 Deferred income tax liabilities: Deferred policy acquisition costs, net (24,812 ) (22,969 ) Prepaid expenses (504 ) (456 ) Fixed assets (880 ) — Other (306 ) (75 ) Total deferred income tax liabilities (26,502 ) (23,500 ) Net deferred income tax asset $ 10,674 $ 13,912 At each balance sheet date, management assesses the need to establish a valuation allowance that reduces deferred tax assets when it is more likely than not that all, or some portion, of the deferred tax assets will not be realized. A valuation allowance would be based on all available information including the Company’s assessment of uncertain tax positions and projections of future taxable income and capital gain from each tax-paying component in each jurisdiction, principally derived from business plans and available tax planning strategies. As of December 31, 2016, the Company has state capital loss carryforwards of $8.3 million and $15.3 million for the periods ending December 31, 2012 and 2013, respectively. These state capital loss carryforwards will begin to expire beginning in 2017. Management believes that it is more likely than not that a portion of the benefit from certain state capital loss carryforwards will not be realized. In recognition of this risk, the company has provided a valuation allowance of $133 thousand on the deferred tax asset relating to the state capital loss carryforward. If management’s assumptions change and we determine the Company will be able to realize these capital loss carryforwards, the tax benefits related to any reversal of the valuation allowance on deferred tax assets as of December 31, 2016, will be accounted for as a future reduction in income tax expense and a corresponding increase in equity. The Company has adopted ASC 740-10-05, Accounting for Uncertainty in Income Taxes, which clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements. ASC 740 provides a threshold for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. The Company’s policy is to classify interest and penalties related to unrecognized tax positions in its provision for income taxes. As of December 31, 2016, 2015 and 2014, we have determined that no uncertain tax liabilities are required. The Company filed a consolidated federal income tax return for the fiscal years ended December 31, 2015, 2014 and 2013 and intends to file the same for the year ended December 31, 2016. The tax allocation agreement between the Company and the Insurance Entities provide that they will incur income taxes based on a computation of taxes as if they were stand-alone taxpayers. The computations are made utilizing the financial statements of the Insurance Entities prepared on a statutory basis of accounting and prior to consolidating entries which include the conversion of certain balances and transactions of the statutory financial statements to a GAAP basis. During 2015, the Company amended its 2010 federal tax return which resulted in a decrease to the 2013 Capital Loss carryforward and offsetting refund of approximately $5.6 million. As of December 31, 2016 the Company has recovered this refund. The Company files its tax returns as prescribed by the tax laws of the jurisdictions in which it operates. The Company’s 2013 through 2015 tax years are still subject to examination in the U.S. Various state jurisdiction tax years remain open to examination. The Company has concluded its 2012 IRS examination, the results of which yielded no material change. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | NOTE 13 – EARNINGS PER SHARE Basic earnings per share (“EPS”) is based on the weighted average number of common shares outstanding for the period, excluding any dilutive common share equivalents. Diluted EPS reflects the potential dilution resulting from exercises of stock options, vesting of restricted stock, vesting of performance share units, and conversion of preferred stock. The following table reconciles the numerator (i.e., income) and denominator (i.e., shares) of the basic and diluted earnings per share computations for the periods presented (in thousands, except per share data): Years Ended December 31, 2016 2015 2014 Numerator for EPS: Net income $ 99,410 $ 106,484 $ 72,988 Less: Preferred stock dividends (10 ) (10 ) (13 ) Income available to common stockholders $ 99,400 $ 106,474 $ 72,975 Denominator for EPS: Weighted average common shares outstanding 34,919 34,799 33,569 Plus: Assumed conversion of share-based compensation (1) 706 1,056 1,535 Assumed conversion of preferred stock 25 29 46 Weighted average diluted common shares outstanding 35,650 35,884 35,150 Basic earnings per common share $ 2.85 $ 3.06 $ 2.17 Diluted earnings per common share $ 2.79 $ 2.97 $ 2.08 Weighted average number of antidilutive shares 1,583 311 64 (1) Represents the dilutive effect of unvested Restricted Stock, unvested Performance Share Units, and unexercised Stock Options. |
Other Comprehensive Income (Los
Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Other Comprehensive Income (Loss) | NOTE 14 – OTHER COMPREHENSIVE INCOME (LOSS) The following table provides the components of other comprehensive income (loss) on a pretax and after-tax basis for the periods presented (in thousands): Years Ended December 31, 2016 2015 2014 Pre-tax Tax After-tax Pre-tax Tax After-tax Pre-tax Tax After-tax Net unrealized gains (losses) on investments available for sale arising during the period $ (1,594 ) (609 ) $ (985 ) $ (2,480 ) $ (963 ) $ (1,517 ) $ 3,252 $ 1,255 $ 1,997 Less: Amounts reclassified from accumulated other comprehensive income (loss) (2,294 ) (877 ) (1,417 ) (1,060 ) (406 ) (654 ) (5,627 ) (2,171 ) (3,456 ) Net current period other comprehensive income (loss) $ (3,888 ) $ (1,486 ) $ (2,402 ) $ (3,540 ) $ (1,369 ) $ (2,171 ) $ (2,375 ) $ (916 ) $ (1,459 ) The following table provides the reclassifications out of accumulated other comprehensive income for the periods presented (in thousands): Amounts Reclassified from Accumulated Other Comprehensive Income Details about Accumulated Other Years Ended December 31, Affected Line Item in the Statement Comprehensive Income Components 2016 2015 2014 Where Net Income is Presented Unrealized gains (losses) on investments available for sale $ 2,294 $ 1,060 $ 5,627 Net realized gains (losses) on investments (877 ) (406 ) (2,171 ) Income taxes, current $ 1,417 $ 654 $ 3,456 Net of tax |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2016 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 15 – COMMITMENTS AND CONTINGENCIES Litigation Lawsuits are filed against the Company from time to time. Many of these lawsuits involve claims under policies that we underwrite and reserve for as an insurer. We believe that the resolution of these claims will not have a material adverse effect on our financial condition or results of operations. We are also involved in various legal proceedings and litigation unrelated to claims under our policies that arise in the ordinary course of business operations. Management believes that any liabilities that may arise as a result of these legal matters will not have a material adverse effect on our financial condition or results of operations. The Company contests liability and/or the amount of damages as appropriate in each pending matter. In accordance with applicable accounting guidance, the Company establishes an accrued liability for legal matters when those matters present loss contingencies that are both probable and estimable. Legal proceedings are subject to many uncertain factors that generally cannot be predicted with assurance, and the Company may be exposed to losses in excess of any amounts accrued. The Company currently estimates that the reasonably possible losses for legal proceedings, whether in excess of a related accrued liability or where there is no accrued liability, and for which the Company is able to estimate a possible loss, are immaterial. This represents management’s estimate of possible loss with respect to these matters and is based on currently available information. These estimates of possible loss do not represent our maximum loss exposure, and actual results may vary significantly from current estimates. Other In 2014, UVE entered into a letter agreement with Ananke Catastrophe Investment Ltd., an affiliate of Nephila Capital Ltd., that calls for a minimum annual spend of $5 million towards covered loss index swaps during the period from June 1, 2016 through May 31, 2025, of which UVE incurred $900 thousand towards that minimum annual spend through December 31, 2016. UVE has an annual spend remaining of $4.1 million towards covered loss index swaps by May 31, 2017. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | NOTE 16 – FAIR VALUE MEASUREMENTS GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants as of the measurement date. GAAP describes three approaches to measuring the fair value of assets and liabilities: the market approach, the income approach and the cost approach. Each approach includes multiple valuation techniques. GAAP does not prescribe which valuation technique should be used when measuring fair value, but does establish a fair value hierarchy that prioritizes the inputs used in applying the various techniques. Inputs broadly refer to the assumptions that market participants use to make pricing decisions, including assumptions about risk. Level 1 inputs are given the highest priority in the hierarchy while Level 3 inputs are given the lowest priority. Assets and liabilities carried at fair value are classified in one of the following three categories based on the nature of the inputs to the valuation technique used: • Level 1 – Observable inputs that reflect unadjusted quoted prices for identical assets or liabilities in active markets as of the reporting date. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis. • Level 2 – Observable market-based inputs or unobservable inputs that are corroborated by market data. • Level 3 – Unobservable inputs that are not corroborated by market data. These inputs reflect management’s best estimate of fair value using its own assumptions about the assumptions a market participant would use in pricing the asset or liability. Summary of significant valuation techniques for assets measured at fair value on a recurring basis Level 1 Common stock: Comprise actively traded, exchange-listed U.S. and international equity securities. Valuation is based on unadjusted quoted prices for identical assets in active markets that the Company can access. Mutual funds: Comprise actively traded funds. Valuation is based on daily quoted net asset values for identical assets in active markets that the Company can access. Level 2 U.S. government obligations and agencies: Comprise U.S. Treasury Bills or Notes or U.S. Treasury Inflation Protected Securities. The primary inputs to the valuation include quoted prices for identical assets in inactive markets or similar assets in active or inactive markets, contractual cash flows, benchmark yields and credit spreads. Corporate Bonds: Comprise investment-grade fixed income securities. The primary inputs to the valuation include quoted prices for identical assets in inactive markets or similar assets in active or inactive markets, contractual cash flows, benchmark yields and credit spreads. Mortgage-backed and asset-backed securities: Comprise securities that are collateralized by mortgage obligations and other assets. The primary inputs to the valuation include quoted prices for identical assets in inactive markets or similar assets in active or inactive markets, contractual cash flows, benchmark yields, collateral performance and credit spreads. Municipal bonds: Comprise fixed income securities issued by a state, municipality or county. The primary inputs to the valuation include quoted prices for identical assets in inactive markets or similar assets in active or inactive markets, contractual cash flows, benchmark yields and credit spreads. Redeemable Preferred Stock: Comprise preferred stock securities that are redeemable. The primary inputs to the valuation include quoted prices for identical or similar assets in markets that are not active. Other: Comprise investment securities subject to remeasurement with original maturities beyond one year. The primary inputs to the valuation include quoted prices for identical or similar assets in markets that are not active. Short-term investments: Comprise investment securities subject to remeasurement with original maturities within one year but more than three months. The primary inputs to the valuation include quoted prices for identical or similar assets in markets that are not active. As required by GAAP, assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement requires judgment, and may affect the placement of the asset or liability within the fair value hierarchy levels. The following tables set forth by level within the fair value hierarchy the Company’s assets that were measured at fair value on a recurring basis as of the dates presented (in thousands): Fair Value Measurements As of December 31, 2016 Level 1 Level 2 Level 3 Total Fixed maturities: U.S. government obligations and agencies $ — $ 74,267 $ — $ 74,267 Corporate bonds — 191,430 — 191,430 Mortgage-backed and asset-backed securities — 214,776 — 214,776 Municipal bonds — 91,197 — 91,197 Redeemable preferred stock — 12,691 — 12,691 Equity securities: Common stock 93 — — 93 Mutual funds 50,710 — — 50,710 Short-term investments — 5,002 — 5,002 Total assets accounted for at fair value $ 50,803 $ 589,363 $ — $ 640,166 Fair Value Measurements As of December 31, 2015 Level 1 Level 2 Level 3 Total Fixed maturities: U.S. government obligations and agencies $ — $ 125,342 $ — $ 125,342 Corporate bonds — 125,517 — 125,517 Mortgage-backed and asset-backed securities — 150,160 — 150,160 Redeemable preferred stock — 10,065 — 10,065 Other — 4,999 — 4,999 Equity securities: Common stock 10,762 — — 10,762 Mutual funds 31,452 — — 31,452 Short-term investments — 25,021 — 25,021 Total assets accounted for at fair value $ 42,214 $ 441,104 $ — $ 483,318 The Company utilizes third-party independent pricing services that provide a price quote for each fixed maturity, equity security and short-term investment. Management reviews the methodology used by the pricing services. If management believes that the price used by the pricing service does not reflect an orderly transaction between participants, management will use an alternative valuation methodology. There were no adjustments made by the Company to the prices obtained from the independent pricing source for any fixed maturities or equity securities included in the tables above. The following table summarizes the carrying value and estimated fair values of the Company’s financial instruments that are not carried at fair value as of the dates presented (in thousands): As of December 31, 2016 2015 (Level 3) (Level 3) Carrying Estimated Carrying Estimated Value Fair Value Value Fair Value Liabilities (debt): Surplus note $ 14,338 $ 13,282 $ 15,809 $ 14,166 Term loan $ — $ — $ 6,851 $ 6,851 Promissory note $ 690 $ 690 $ 1,390 $ 1,390 Level 3 Long-term debt: The fair value of the surplus note was determined by management from the expected cash flows discounted using the interest rate quoted by the holder. The SBA is the holder of the surplus note and the quoted interest rate is below prevailing rates quoted by private lending institutions. However, as the Company’s use of funds from the surplus note is limited by the terms of the agreement, the Company has determined the interest rate quoted by the SBA to be appropriate for purposes of establishing the fair value of the note. The fair value of the term loan approximates the carrying value given the original issue discount which was calculated based on the present value of future cash flows using the Company’s effective borrowing rate. The fair value of the promissory note is not materially different than its carrying value. |
Liability for Unpaid Losses and
Liability for Unpaid Losses and Loss Adjustment Expenses | 12 Months Ended |
Dec. 31, 2016 | |
Insurance Loss Reserves [Abstract] | |
Liability for Unpaid Losses and Loss Adjustment Expenses | NOTE 17 – LIABILITY FOR UNPAID LOSSES AND LOSS ADJUSTMENT EXPENSES Set forth in the following tables is information about unpaid losses and loss adjustment expenses as of December 31, 2016, net of reinsurance, as well as cumulative claim counts and the total of incurred-but-not-reported liabilities plus expected development on reported claims included within the liability for unpaid losses and LAE (in thousands). The information about unpaid losses and loss adjustment expenses for the years ended December 31, 2012 to 2015, is presented as supplementary information and is unaudited. Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance As of December 31, 2016 Total of Incurred- but-Not-Reported For the Years Ended December 31, Liabilities Plus Accident Year 2012* 2013* 2014* 2015* 2016 Expected Development (Redundancy) on Reported Claims Cumulative Number of Reported Claims 2012 * $ 109,073 $ 102,118 $ 101,888 $ 99,517 $ 95,727 $ (3,399 ) 24,272 2013 * 100,111 96,993 96,012 88,493 (7,650 ) 20,415 2014 * 111,739 118,289 112,251 (9,947 ) 22,347 2015 * 170,381 187,431 (10,114 ) 26,502 2016 269,814 13,321 35,690 Total $ 753,716 *UNAUDITED Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, Accident Year 2012* 2013* 2014* 2015* 2016 2012 * $ 54,155 $ 89,039 $ 94,817 $ 97,962 $ 98,510 2013 * 61,117 88,843 93,489 95,059 2014 * 69,703 112,059 119,798 2015 * 115,328 191,481 2016 204,122 Total $ 708,970 All outstanding liabilities before 2012, net of reinsurance* 381 Liabilities for claims and claim adjustment expenses, net of reinsurance $ 45,127 *UNAUDITED Set forth is the following reconciliation of the net incurred and paid claims development tables to the liability for unpaid losses and LAE in the consolidated Balance Sheet as of December 31, 2016 (in thousands): December 31, 2016 Liabilities for unpaid claims and claim adjustment expenses, net of reinsurance $ 45,127 Reinsurance recoverable on unpaid claims 106 Unallocated claims adjustment expenses and other 13,261 Total gross liability for unpaid claims and claim adjustment expense $ 58,494 Set forth is the supplementary information about average historical claims duration as of December 31, 2016: Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance Years 1 2 3 4 5 64.0 % 14.6 % 8.7 % 5.6 % 3.5 % Set forth in the following table is the change in liability for unpaid losses and LAE for the periods presented (in thousands): Years Ended December 31, 2016 2015 2014 Balance at beginning of year $ 98,840 $ 134,353 $ 159,222 Less: Reinsurance recoverable (13,540 ) (47,350 ) (68,584 ) Net balance at beginning of period 85,300 87,003 90,638 Incurred (recovered) related to: Current year 305,919 188,040 124,011 Prior years (4,690 ) (301 ) (736 ) Total incurred 301,229 187,739 123,275 Paid related to: Current year 229,761 123,952 73,981 Prior years 98,380 65,490 52,929 Total paid 328,141 189,442 126,910 Net balance at end of period 58,388 85,300 87,003 Plus: Reinsurance recoverable 106 13,540 47,350 Balance at end of year $ 58,494 $ 98,840 $ 134,353 Basis for estimating liabilities for unpaid claims and claim adjustment expenses The company establishes a liability to provide for the estimated unpaid portion of the costs of paying losses LAE under insurance policies the Insurance Entities have issued. Predominately all of the company’s claims relate to the company’s core product, homeowner’s insurance and the various policy forms in which it is available. The liability for unpaid losses and LAE consists of the following: • Case reserves, which are the reserves established by the claims examiner on reported claims • Incurred but not reported (“IBNR”), which are anticipated losses expected to be reported to the company and development of reported claims • LAE, which are the estimated expenses associated with the settlement of case reserves and IBNR Underwriting results are significantly influenced by the company’s practices in establishing its estimated liability for unpaid losses and LAE. The liability is an estimate of amounts necessary to ultimately settle all current and future claims and LAE on claims occurring during the policy coverage period each year as of the financial statement date. Characteristics of Reserves The liability for unpaid losses and LAE, also known as reserves, are established based on estimates of the ultimate future amounts needed to settle claims, either known or unknown, less losses that have been paid to date. Claims are typically reported promptly with relatively little reporting lag between the date of occurrence and the date the loss is reported. The company’s claim settlement data suggests that homeowners’ property losses have an average settlement time of less than one year, while homeowners’ liability losses generally take longer. Reserves are estimated for both reported and unreported claims, and include estimates of all expenses associated with processing and settling all incurred claims, including consideration for anticipated subrogation recoveries that will offset future loss payments. The company updates reserve estimates periodically as new information becomes available or as events emerge that may affect the resolution of unsettled claims. Changes in prior year reserve estimates (reserve re-estimates), which may be material, are determined by comparing updated estimates of ultimate losses to prior estimates, and the differences are recorded as losses and LAE in the Consolidated Statements of Income in the period such changes are determined. Estimating the ultimate cost of losses and LAE is an inherently uncertain and complex process involving a high degree of subjective judgment and is subject to the interpretation and usage of numerous uncertain variables as discussed further below. Reserves for losses and LAE are determined in three primary sectors. These sectors are (1) the estimation of reserves for Florida non-catastrophe losses, (2) hurricane losses, and (4) non-Florida non-catastrophe losses and any other losses. Evaluations are performed for gross loss, LAE and subrogation separately, and on a net and direct basis for each sector. The analyses for non-catastrophe losses are further separated into data groupings of like exposure or type of loss. These groups are property damage on homeowner policy forms HO-3 and HO-8 combined, property damage on homeowner policy forms HO-4 and HO-6 combined, property damage on dwelling fire policies, sinkhole claims, water damage claims and all liability exposures combined. Although our analysis is looked at in these three sectors, these sectors are aggregated into the single tables noted above due to the analogous nature of the product and similar claim settlement traits. As claims are reported, the claims department establishes an estimate of the liability for each individual claim called case reserves. For certain liability claims of sufficient size and complexity, the field adjusting staff establishes case reserve estimates of ultimate cost, based on their assessment of facts and circumstances related to each individual claim. For other claims which occur in large volumes and settle in a relatively short time frame, it is not practical or efficient to set case reserves for each claim, and an initial case reserve of $2,500 is set for these claims. In the normal course of business, we may also supplement our claims processes by utilizing third party adjusters, appraisers, engineers, inspectors, other professionals and information sources to assess and settle catastrophe and non-catastrophe related claims. The Actuarial Methods used to Develop Reserve Estimates Reserve estimates for both unpaid losses and LAE are derived using several different actuarial estimation methods in order to provide the actuary with multiple predictive viewpoints to consider for each of the sectors discussed above. Each of the methods has merit, because they each provide insight into emerging patterns. These methods are each variations on two primary actuarial techniques: “chain ladder development” techniques and “counts and average” techniques. The “chain ladder development” actuarial technique is an estimation process in which historical payment and reserving patterns are applied to actual paid and/or reported amounts (paid losses, recovered subrogation or LAE plus individual case reserves established by claim adjusters) for an accident period to create an estimate of how losses or recoveries are likely to develop over time. The “counts and average” technique includes an evaluation of historical and projected costs per claim, and late-reported claim counts, for open claims by accident period. An accident period refers to classification of claims based on the date in which the claims occurred, regardless of the date they were reported to the company. These analyses are used to prepare estimates of required reserves for payments or recoveries to be made in the future. Transactions are organized into half-year accident periods for purposes of the reserve estimates. Key data elements used to determine our reserve estimates include historical claim counts, loss and LAE payments, subrogation received, case reserves, earned policy exposures, and the related development factors applicable to this data. The first method for estimating unpaid amounts for each sector is a chain ladder method called the paid development method. This method is based upon the assumption that the relative change in a given accident period’s paid losses from one evaluation point to the next is similar to the relative change in prior periods’ paid losses at similar evaluation points. In utilizing this method, actual 6-month historical loss activity is evaluated. Successive periods can be arranged to form a triangle of data. Paid-to-Paid (“PTP”) development factors are calculated to measure the change in cumulative paid losses, LAE, and subrogation recoveries, from one evaluation point to the next. These historical PTP factors form the basis for selecting the PTP factors used in projecting the current valuation of losses to an ultimate basis. In addition, a tail factor is selected to account for loss development beyond the observed experience. The tail factor is based on trends shown in the data and consideration of industry loss development benchmarks. Utilization of a paid development method has the advantage of avoiding potential distortions in the data due to changes in case reserving methodology. This method’s implicit assumption is that the rate of payment of claims has been relatively consistent over time, and that there have been no material changes in the rate at which claims have been reported or settled. In instances where changes in settlement rates are detected, the PTP factors are adjusted accordingly, utilizing appropriate actuarial techniques. These adjusted techniques each produce additional development method estimates for consideration. A second method is the reported development method. This method is similar to the paid development method; however, case reserves are considered in the analysis. Successive periods of reported loss estimates (including paid loss, subrogation recoveries, paid LAE and held case reserves) are organized similar to the paid development method in order to evaluate and select Report-to-Report (“RTR”) development factors. This method has the advantage of recognizing the information provided by current case reserves. Its implicit assumption is that the relative adequacy of case reserves is consistent over time, and that there have been no material changes in the rate at which claims have been reported or settled. In cases where significant reserve strengthening or other changes have occurred, RTR factors are adjusted accordingly, utilizing appropriate actuarial techniques. A third method is the Bornhuetter-Ferguson (“B-F”) method, which is also utilized for estimating unpaid loss and LAE amounts. Each B-F technique is a blend of chain ladder development methods and an expected loss method, whereby the total reserve estimate equals the unpaid portion of a predetermined expected unpaid ultimate loss projection. The unpaid portion is determined based on assumptions underlying the development methods. As an experience year matures and expected unreported (or unpaid) losses become smaller, the initial expected loss assumption becomes gradually less important. This has the advantage of stability, but it is less responsive to actual results that have emerged. Two parameters are needed in each application of the B-F method: an initial assumption of expected losses and the expected reporting or payment pattern. Initial expected losses for each accident period other than the current year is determined using the estimated ultimate loss ratio from the prior analysis. Initial expected losses for the current year’s accident periods are determined based on trends in historical loss ratios, rate changes, and underlying loss trends. The expected reporting pattern is based on the reported or paid loss development method described above. This method is often used in situations where the reported loss experience is relatively immature or lacks sufficient credibility for the application of other methods. A fourth method, called the counts and averages method, is utilized for estimates of loss, subrogation and LAE for each Florida sector. In this method, an estimate of unpaid losses or expenses is determined by separately projecting ultimate reported claim counts and ultimate claim severities (cost or recoveries per claim) on open and unreported claims for each accident period. Typically, chain ladder development methods are used to project ultimate claim counts and claim severities based on historical data using the same methodology described in the paid and reported development methods above. Estimated ultimate losses are then calculated as the product of the two items. This method is intended to avoid data distortions that may exist with the other methods for the most recent years as a result of changes in case reserve levels, settlement rates and claims handling fees. In addition, it may provide insight into the drivers of loss experience. For example, this method is utilized for sinkhole losses due to unique settlement patterns that have emerged since the passage of legislation that codified claim settlement practices with respect to sinkhole related claims and subsequent policy form changes we implemented. The method is also important as we implemented our Fast Track Initiative, which is an initiative to settle claims on an accelerated basis. These claims are expected to be reported and settled at different rates and ultimate values than historically observed, requiring a departure from traditional development methodologies. The implicit assumption of these techniques is that the selected factors and averages combine to form development patterns or severity trends that are predictive of future loss development of incurred claims. In selecting relevant parameters utilized in each estimation method, due consideration is given to how the patterns of development change from one year to the next over the course of several consecutive years of recent history. Furthermore, the effects of inflation and other anticipated trends are considered in the reserving process in order to generate selections that include adequate provisions to estimate the cost of claims that settle in the future. Finally, in addition to paid loss, reported loss, subrogation recoveries, and LAE development triangles, various diagnostic triangles, such as triangles showing historical patterns in the ratio of paid-to-reported losses and closed-to-reported claim counts are prepared. These diagnostic triangles are utilized in order to monitor the stability of various determinants of loss development, such as consistency in claims settlement and case reserving. Estimates of unpaid losses for hurricane experience are developed using a combination of company-specific and industry patterns, due to the relatively infrequent nature of storms and the high severity typically associated with them. Development patterns and other benchmarks are based on consideration of all reliable information, such as historical events with similar landfall statistics, the range of estimates developed from industry catastrophe models, and claim reporting and handling statistics from our field units. It is common for the company to update its projection of unpaid losses and LAE for a significant hurricane event on a monthly, or even weekly basis, for the first 6-months following an event. Estimation methods described above each produce estimates of ultimate losses and LAE. Based on the results of these methods, a single estimate (commonly referred to as an actuarial point/central estimate) of the ultimate loss and LAE is selected accordingly for each accident-year claim grouping. Estimated IBNR reserves are determined by subtracting reported losses from the selected ultimate loss, and the paid LAE from the ultimate LAE. The estimated loss IBNR reserves are added to case reserves to determine total estimated unpaid losses. Note that estimated IBNR reserves can be negative for an individual accident-year claim grouping if the selected ultimate loss includes a provision for anticipated subrogation, or if there is a possibility that case reserves are overstated. No case reserves are carried for LAE, therefore the estimated LAE IBNR reserves equal the total estimated unpaid LAE. For each sector, the reserving methods are carried out on both a net and direct basis in order to estimate liabilities accordingly. When selecting a single actuarial point/central estimate on a net basis, careful consideration is given for the reinsurance arrangements that were in place during each accident year, exposure period and segment being reviewed. How Reserve Estimates are Established and Updated Reserve estimates are developed for both open claims and unreported claims. The actuarial methods described above are used to derive claim settlement patterns by determining development factors to be applied to specific data elements. Development factors are calculated for data elements such as claim counts reported and settled, paid losses and paid losses combined with case reserves, loss expense payments, and subrogation recoveries. Historical development patterns for these data elements are used as the assumptions to calculate reserve estimates. Often, different estimates are prepared for each detailed component, incorporating alternative analyses of changing claim settlement patterns and other influences on losses, from which a best estimate is selected for each component, occasionally incorporating additional analyses and actuarial judgment as described above. These estimates are not based on a single set of assumptions. Based on a review of these estimates, the best estimate of required reserves is recorded for each accident year and the required reserves are summed to create the reserve balance carried on the Consolidated Balance Sheets. Reserves are re-estimated periodically by combining historical payment and reserving patterns with current actual results. When actual development of claims reported, paid losses or case reserve changes are different than the historical development pattern used in a prior period reserve estimate, and as actuarial studies validate new trends based on indications of updated development factor calculations, new ultimate loss and LAE predictions are determined. This process incorporates the historic and latest trends, and other underlying changes in the data elements used to calculate reserve estimates. The difference between indicated reserves based on new reserve estimates and the previously recorded estimate of reserves is the amount of reserve re-estimates. The resulting increase or decrease in the reserve re-estimates is recorded and included in “Losses and loss adjustment expenses” in the Consolidated Statements of Income. Total reserve re-estimates conducted in 2016, 2015 and 2014, resulted in favorable development of $4.7 million in 2016, $0.3 million in 2015, and $0.7 million in 2014. The favorable development in 2016 was principally the result of increases in estimated subrogation recoveries. Claim frequency The methodology used to determine claim counts is based first around the event and then based on coverage. One event could have one or more claims based on the policy coverage, for example an event could have a claim for the first party coverage and a claim for third party liability regardless of the number of third party claimants. If multiple third party liability claims are reported together they would be counted as one claim. |
Quarterly Results for 2016 and
Quarterly Results for 2016 and 2015 | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Results for 2016 and 2015 | NOTE 18 – QUARTERLY RESULTS FOR 2016 AND 2015 (UNAUDITED) The following table provides a summary of quarterly results for the periods presented (in thousands except per share data): First Second Third Fourth Quarter Quarter Quarter Quarter For the Year Ended December 31, 2016 Premiums earned, net $ 152,448 $ 156,461 $ 159,534 $ 163,973 Investment income 1,605 2,142 2,304 3,489 Total revenues 164,446 169,802 172,436 178,605 Total expenses 123,347 114,908 128,273 155,878 Net income 25,226 33,647 26,882 13,655 Basic earnings per share $ 0.73 $ 0.96 $ 0.77 $ 0.39 Diluted earnings per share $ 0.71 $ 0.94 $ 0.75 $ 0.38 For the Year Ended December 31, 2015 Premiums earned, net $ 94,360 $ 112,888 $ 146,153 $ 150,598 Investment income 862 1,207 1,307 1,779 Total revenues 103,810 123,591 157,043 162,100 Total expenses 65,787 82,371 109,143 114,220 Net income 22,330 24,704 30,298 29,152 Basic earnings per share $ 0.65 $ 0.71 $ 0.87 $ 0.84 Diluted earnings per share $ 0.62 $ 0.69 $ 0.84 $ 0.82 Total revenues for each quarter in 2016 exceeded 2015 whereby net income improved only during the first two quarters of 2016 versus 2015. In the fourth quarter of 2016 the company recorded losses and LAE for weather events including Hurricane Matthew which was the principal impact to reduced profitability offset somewhat by lower expense ratio in 2016 versus 2015. Net income for the fourth quarter of 2016 decreased 53.2%, or $15.5 million, to $13.7 million compared to net income of $29.2 in the fourth quarter of 2015. The primary drivers behind the increases in revenue were increased policy and premium counts year over year driven by organic growth in, and outside of Florida and the elimination of quota-share reinsurance in June 2015. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | NOTE 19 – SUBSEQUENT EVENTS The Company performed an evaluation of subsequent events through the date the financial statements were issued and determined there were no recognized or unrecognized subsequent events that would require an adjustment or additional disclosure in the consolidated financial statements as of December 31, 2016. On January 23, 2017, the Company declared a dividend of $ 0.14 per share on its outstanding common stock payable on March 2, 2017, to shareholders of record on February 17, 2017. |
Schedule II - Condensed Financi
Schedule II - Condensed Financial Information of Registrant | 12 Months Ended |
Dec. 31, 2016 | |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |
Schedule II - Condensed Financial Information of Registrant | SCHEDULE II – CONDENSED FINANCIAL INFORMATION OF REGISTRANT Universal Insurance Holdings, Inc. had no long term obligations, guarantees or material contingencies as of December 31, 2016 and 2015. The following summarizes the major categories of the parent company’s financial statements (in thousands, except per share data): CONDENSED BALANCE SHEETS As of December 31, 2016 2015 ASSETS Cash and cash equivalents $ 3,951 $ 2,046 Investments in subsidiaries and undistributed earnings 362,759 291,793 Fixed maturities, at fair value 3,003 2,980 Equity maturities, at fair value 625 551 Income taxes recoverable 3,262 5,420 Deferred income taxes 10,674 13,912 Other assets 1,003 358 Total assets $ 385,277 $ 317,060 LIABILITIES AND STOCKHOLDERS' EQUITY LIABILITIES: Accounts payable $ 50 $ — Long-term debt — 6,851 Other accrued expenses 14,037 17,117 Total liabilities 14,087 23,968 STOCKHOLDERS' EQUITY: Cumulative convertible preferred stock, $.01 par value — — Authorized shares - 1,000 Issued shares - 10 and 10 Outstanding shares - 10 and 10 Minimum liquidation preference - $9.99 and $9.99 per share Common stock, $.01 par value 453 455 Authorized shares - 55,000 Issued shares - 45,324 and 45,525 Outstanding shares - 35,052 and 35,110 Treasury shares, at cost - 10,272 and 10,415 (86,982 ) (80,802 ) Additional paid-in capital 82,263 70,789 Accumulated other comprehensive income (loss), net of taxes (6,408 ) (4,006 ) Retained earnings 381,864 306,656 Total stockholders' equity 371,190 293,092 Total liabilities and stockholders' equity $ 385,277 $ 317,060 See accompanying notes to condensed financial statements CONDENSED STATEMENTS OF INCOME For the Years Ended December 31, 2016 2015 2014 REVENUES Net investment income (expense) $ (35 ) $ 22 $ (23 ) Net realized gains (losses) on investments 667 66 625 Management fee 138 140 121 Other revenue 80 — — Total premiums earned and other revenues 850 228 723 OPERATING COSTS AND EXPENSES General and administrative expenses 35,342 48,056 39,062 Total operating cost and expenses 35,342 48,056 39,062 LOSS BEFORE INCOME TAXES AND EQUITY IN NET EARNINGS OF SUBSIDIARIES (34,492 ) (47,828 ) (38,339 ) Benefit from income taxes (12,055 ) (17,495 ) (16,403 ) LOSS BEFORE EQUITY IN NET EARNINGS OF SUBSIDIARIES (22,437 ) (30,333 ) (21,936 ) Equity in net income of subsidiaries 121,847 136,817 94,924 CONSOLIDATED NET INCOME $ 99,410 $ 106,484 $ 72,988 See accompanying notes to condensed financial statements CONDENSED STATEMENTS OF CASH FLOWS For the Years Ended December 31, 2016 2015 2014 Cash flows from operating activities Net Income $ 99,410 $ 106,484 $ 72,988 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Equity in net income of subsidiaries (121,847 ) (136,817 ) (94,924 ) Distribution of income from subsidiaries 46,914 58,224 55,805 Depreciation 2 4 2 Amortization of share-based compensation 10,288 17,386 12,342 Amortization of original issue discount on debt 149 521 840 Accretion of deferred credit (149 ) (521 ) (840 ) Net realized (gains) losses on investments (667 ) (66 ) (625 ) Deferred income taxes 4,724 (693 ) 1,118 Excess tax benefits from share-based compensation 1,154 (5,310 ) (7,006 ) Net changes in assets and liabilities relating to operating activities: Income taxes recoverable 1,004 255 2,477 Income taxes payable — 3,510 6,239 Other operating assets and liabilities (596 ) (1,338 ) 5,752 Other liabilities and accrued expenses (2,896 ) — — Net cash provided by (used in) operating activities 37,490 41,639 54,168 Cash flows from investing activities: Capital contributions to subsidiaries — — (5,585 ) Purchases of equity securities, available for sale (2,037 ) (1,442 ) (15,836 ) Purchase of fixed maturities, available for sale (3,000 ) — (3,000 ) Proceeds from sales of equity securities, available for sale 2,456 1,481 26,060 Proceeds from sales of fixed maturities, available for sale 3,229 — 770 Net cash provided by (used in) investing activities 648 39 2,409 Cash flows from financing activities: Repayment of debt — (7,000 ) (6,000 ) Preferred stock dividend (10 ) (10 ) (13 ) Common stock dividend (24,192 ) (22,287 ) (19,240 ) Issuance of common stock 119 511 73 Purchase of treasury stock (8,510 ) (18,649 ) (29,736 ) Sale of treasury stock 2,965 — — Purchase of preferred stock — (256 ) — Proceeds received from issuance of contingently redeemable common stock — — 19,000 Payments related to tax withholding for share-based compensation (5,451 ) (12,141 ) (17,655 ) Excess tax benefits (shortfall) from share-based compensation (1,154 ) 5,310 7,006 Net cash provided by (used in) financing activities (36,233 ) (54,522 ) (46,565 ) Net increase (decrease) in cash and cash equivalents 1,905 (12,844 ) 10,012 Cash and cash equivalents at beginning of period 2,046 14,890 4,878 Cash and cash equivalents at end of period $ 3,951 $ 2,046 $ 14,890 See accompanying notes to condensed financial statements NOTE 1 – GENERAL The financial statements of the Registrant should be read in conjunction with the consolidated financial statements in “Item 8.” Nature of Operations and Basis of Presentation Universal Insurance Holdings, Inc. (the “Company”) is a Delaware corporation incorporated in 1990. The Company is an insurance holding company whose wholly-owned subsidiaries perform all aspects of insurance underwriting, distribution and claims. Through its wholly-owned subsidiaries, including Universal Property & Casualty Insurance Company and American Platinum Property and Casualty Insurance Company, the Company is principally engaged in the property and casualty insurance business offered primarily through a network of independent agents. Risk from catastrophic losses is managed through the use of reinsurance agreements. The Company generates revenues from earnings on investments and management fees. The Company also receives distributions of earnings from its insurance and non-insurance subsidiaries. Certain amounts in the prior periods’ condensed financial statements have been reclassified in order to conform to current period presentation. Such reclassifications had no effect on net income or stockholders’ equity. NOTE 2 – SUBSEQUENT EVENTS The Company performed an evaluation of subsequent events through the date the financial statements were issued and determined there were no recognized or unrecognized subsequent events that would require an adjustment or additional disclosure in the consolidated financial statements as of December 31, 2016. On January 23, 2017, the Company declared a dividend of $0.14 per share on its outstanding common stock payable on March 2, 2017, to shareholders of record on February 17, 2017. |
Schedule V - Valuation Allowanc
Schedule V - Valuation Allowances and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2016 | |
Valuation And Qualifying Accounts [Abstract] | |
Schedule V - Valuation Allowances and Qualifying Accounts | SCHEDULE V – VALUATION ALLOWANCES AND QUALIFYING ACCOUNTS The following table summarizes activity in the Company’s allowance for doubtful accounts for the periods presented (in thousands): Additions Charges to Beginning Charges to Other Ending Balance Earnings Accounts Deductions Balance Description Year Ended December 31, 2016: Allowance for doubtful accounts $ 344 397 — 214 $ 527 Year Ended December 31, 2015: Allowance for doubtful accounts $ 357 395 — 408 $ 344 Year Ended December 31, 2014: Allowance for doubtful accounts $ 446 431 — 520 $ 357 |
Schedule VI - Supplemental Info
Schedule VI - Supplemental Information Concerning Consolidated Property and Casualty Insurance Operations | 12 Months Ended |
Dec. 31, 2016 | |
Supplemental Information For Property Casualty Insurance Underwriters [Abstract] | |
Schedule VI - Supplemental Information Concerning Consolidated Property and Casualty Insurance Operations | SCHEDULE VI – SUPPLEMENTAL INFORMATION CONCERNING CONSOLIDATED PROPERTY AND CASUALTY INSURANCE OPERATIONS The following table provides certain information related to the Company’s property and casualty operations as of, and for the periods presented (in thousands): As of December 31, For the Year Ended December 31, Reserves Incurred Incurred for Unpaid Loss and Loss and Net Losses and LAE Current LAE Prior Paid Losses Investment LAE Year Years and LAE Income 2016 $ 58,494 $ 305,919 $ (4,690 ) $ 328,141 $ 9,540 2015 $ 98,840 $ 188,040 $ (301 ) $ 189,442 $ 5,155 2014 $ 134,353 $ 124,011 $ (736 ) $ 126,910 $ 2,375 As of December 31, For the Year Ended December 31, Deferred Policy Net Net Acquisition Amortization Premiums Premiums Unearned Cost ("DPAC"), Net of DPAC, Net Written Earned Premiums 2016 $ 64,912 $ (125,350 ) $ 656,094 $ 632,416 $ 475,756 2015 $ 60,019 $ (87,871 ) $ 626,448 $ 503,999 $ 442,366 2014 $ 25,660 $ (33,501 ) $ 389,847 $ 326,877 $ 383,488 |
Nature of Operations and Basi31
Nature of Operations and Basis of Presentation (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Nature of Operations, Basis of Presentation and Consolidation | Nature of Operations, Basis of Presentation and Consolidation Universal Insurance Holdings, Inc. (“UVE”) is a Delaware corporation incorporated in 1990. UVE with its wholly-owned subsidiaries (the “Company”), is a vertically integrated insurance holding company performing all aspects of insurance underwriting, distribution and claims. Through its wholly-owned subsidiaries, Universal Property & Casualty Insurance Company (“UPCIC”) and American Platinum Property and Casualty Insurance Company (“APPCIC”), together referred to as the “Insurance Entities,” the Company is principally engaged in the property and casualty insurance business offered primarily through a network of independent agents. Risk from catastrophic losses is managed through the use of reinsurance agreements. The Company’s primary product is homeowners’ insurance currently offered in fourteen states as of December 31, 2016, including Florida, which comprises the vast majority of the Company’s in-force policies. See “— Note 5 (Insurance Operations) The Company generates revenues primarily from the collection of premiums and invests funds in excess of those retained for claims-paying obligations and insurance operations. Other significant sources of revenue include brokerage commissions collected from reinsurers or reinsurance programs placed by the Insurance Entities, policy fees collected from policyholders by our wholly-owned managing general agency subsidiary and payment plan fees charged to policyholders who choose to pay their premiums in installments. The consolidated financial statements have been prepared in conformity with generally accepted accounting principles in the United States of America (“GAAP”). The consolidated financial statements include the accounts of UVE and its wholly owned subsidiaries. All material intercompany balances and transactions have been eliminated in consolidation. To conform to current period presentation, certain amounts in the prior periods’ consolidated financial statements and notes have been reclassified. Such reclassifications were of an immaterial amount and had no effect on net income or stockholders’ equity. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. The Company’s primary areas of estimate are the recognition of premium revenues, liabilities for unpaid losses and loss adjustment expenses, provision for premium deficiency and reinsurance. Actual results could differ from those estimates. |
Cash and Cash Equivalents | Cash and Cash Equivalents. The Company includes in cash equivalents all short-term, highly liquid investments that are readily convertible to known amounts of cash and have an original maturity of three months or less. These amounts are carried at cost, which approximates fair value. The Company excludes any net negative cash balances from cash and cash equivalents that the Company has with any single financial institution. These amounts represent outstanding checks not yet presented to the financial institution and are reclassified to liabilities and presented as book overdraft in the Company’s Consolidated Balance Sheets. |
Restricted Cash and Cash Equivalents | Restricted Cash and Cash Equivalents. The Company classifies amounts of cash and cash equivalents that are restricted in terms of their use and withdrawal separately on the face the Consolidated Balance Sheets. See “— ,” for a discussion of the nature of the restrictions. |
Investment Securities, Available for Sale | Investment Securities, Available for Sale . Investment securities available for sale consist of fixed maturities, equity securities and short-term investments with maturities of greater than three months. Investment securities available for sale are recorded at fair value on the consolidated balance sheet. Unrealized gains and losses on securities available for sale are excluded from earnings and reported as a component of other comprehensive income, net of related deferred taxes until reclassified to earnings upon the consummation of sales transaction with an unrelated third party or when the decline in fair value is deemed other than temporary. The assessment of whether the impairment of a security’s fair value is other than temporary is performed using a portfolio review as well as a case-by-case review considering a wide range of factors. There are a number of assumptions and estimates inherent in evaluating impairments and determining if they are other than temporary, including: 1) the Company’s ability and intent to hold the investment for a period of time sufficient to allow for an anticipated recovery in value; 2) the expected recoverability of principal and interest; 3) the extent and length of time to which the fair value has been less than amortized cost for fixed maturity securities or cost for equity securities and short-term investments referred to as severity and duration; 4) the financial condition, near-term and long-term prospects of the issue or issuer, including relevant industry conditions and trends, and implications of rating agency actions and offering prices referred to as credit quality; and 5) the specific reasons that a security is in a significant unrealized loss position, including market conditions which could affect liquidity. Additionally, once assumptions and estimates are made, any number of changes in facts and circumstances could cause the Company to subsequently determine that an impairment is other than temporary, including: 1) general economic conditions that are worse than previously forecasted or that have a greater adverse effect on a particular issuer or industry sector than originally estimated; 2) changes in the facts and circumstances related to a particular issue or issuer’s ability to meet all of its contractual obligations; and 3) changes in facts and circumstances obtained that causes a change in our ability or intent to hold a security to maturity or until it recovers in value. Management’s intent and ability to hold securities is a determination that is made at each respective balance sheet date giving consideration to factors known to management for each individual issuer of securities such as credit quality and other publicly available information. Gains and losses realized on the disposition of investment securities available for sale are determined on the FIFO basis and credited or charged to income. Premium and discount on investment securities are amortized and accreted using the interest method and charged or credited to investment income. |
Investment Real Estate | Investment Real Estate. Investment real estate is recorded at cost less accumulated depreciation. Depreciation is calculated on a straight-line basis over the estimated useful life of the assets. Real estate taxes, interest and other costs incurred during development and construction of non-income producing properties are capitalized. Income and expenses from income producing real estate are reported under net investment income. Investment real estate is evaluated for impairment when events or circumstances indicate the carrying value may not be recoverable. |
Premiums Receivable | Premiums Receivable. Generally, premiums are collected prior to providing risk coverage, minimizing the Company’s exposure to credit risk. The Company performs a policy level evaluation to determine the extent the premiums receivable balance exceeds the unearned premiums balance. The Company then ages this exposure to establish an allowance for doubtful accounts based on prior experience. As of December 31, 2016 and 2015, the Company had recorded allowances for doubtful accounts in the amounts of $527 thousand and $344 thousand, respectively. |
Property and Equipment | Property and Equipment. Property and equipment is recorded at cost less accumulated depreciation. Depreciation is provided on the straight-line basis over the estimated useful life of the assets. Estimated useful life of all property and equipment ranges from three to twenty-seven-and-one-half years. Expenditures for improvements are capitalized and depreciated over the remaining useful life of the asset. Routine repairs and maintenance are expensed as incurred. Website development costs are capitalized and amortized over their estimated useful life. The Company reviews its property and equipment annually and whenever changes in circumstances indicate that the carrying amount may not be recoverable. |
Recognition of Premium Revenues | Recognition of Premium Revenues. The Company recognizes revenue when realized or realizable and earned. Property and liability premiums are recognized as revenue on a pro rata basis over the policy term. The portion of premiums that will be earned in the future is deferred and reported as unearned premiums. The Company believes that its revenue recognition policies conform to GAAP. In the event policyholders cancel their policies, unearned premiums represent amounts that the Insurance Entities would refund policyholders. Accordingly, the Company determines unearned premiums by calculating the pro rata amount that would be due to the policyholders at a given point in time based upon the premiums owed over the life of each policy. |
Recognition of Commission Revenue and Policy Fees | Recognition of Commission Revenue and Policy Fees . Commission revenue generated from agency operations and the Managing General Agent (MGA)’s policy fee on all new and renewal insurance policies are recognized as income upon policy inception. Brokerage commission revenue earned on ceded reinsurance is recognized over the term of the reinsurance agreements. |
Recognition of Policyholder Payment Plan Fee Revenue | Recognition of Policyholder Payment Plan Fee Revenue. The Company offers its policyholders the option of paying their policy premiums in full at inception or in two or four installment payments. The Company charges fees to its policyholders that elect to pay their premium in installments and records such fees as revenue when the policyholder makes the installment payment election and the Company bills the fees to the policyholder. These fees are included in Other Revenue in the Company’s Consolidated Statements of Income. |
Deferred Policy Acquisition Costs | Deferred Policy Acquisition Costs . Certain costs incurred in connection with the successful acquisition and renewal of insurance business are deferred and amortized over the terms of the policies to which they are related. A portion of reinsurance ceding commissions received are deferred and amortized over the effective period of the related insurance policies. Deferred policy acquisition costs and deferred ceding commissions are netted for balance sheet presentation purposes. |
Goodwill | Goodwill. Goodwill arising from the acquisition of a business is initially measured at cost and not subject to amortization. We assess goodwill for potential impairments at the end of each fiscal year, or during the year if an event or other circumstance indicates that we may not be able to recover the carrying amount of the asset. Goodwill is included under Other Assets in the Consolidated Balance Sheets. |
Insurance Liabilities | Insurance Liabilities . Unpaid losses and loss adjustment expenses (“LAE”) are provided for as claims are incurred. The provision for unpaid losses and loss adjustment expenses includes: (1) the accumulation of individual case estimates for claims and claim adjustment expenses reported prior to the close of the accounting period; (2) estimates for unreported claims based on industry data; and (3) estimates of expenses for investigating and adjusting claims based on the experience of the Company and the industry. Inherent in the estimates of ultimate claims are expected trends in claim severity, frequency and other factors that may vary as claims are settled. The amount of uncertainty in the estimates for casualty coverage is significantly affected by such factors as the amount of claims experience relative to the development period, knowledge of the actual facts and circumstances and the amount of insurance risk retained. In addition, the Company’s policyholders are currently concentrated in South Florida, which is periodically subject to adverse weather conditions, such as hurricanes and tropical storms. The methods for making such estimates and for establishing the resulting liability are periodically reviewed, and any adjustments are reflected in current earnings. |
Provision for Premium Deficiency | Provision for Premium Deficiency . It is the Company’s policy to evaluate and recognize losses on insurance contracts when estimated future claims and maintenance costs under a group of existing contracts will exceed anticipated future premiums. No accruals for premium deficiency were considered necessary as of December 31, 2016 and 2015. |
Reinsurance | Reinsurance . Ceded written premium is recorded upon the effective date of the reinsurance contracts and earned over the contract period. Amounts recoverable from reinsurers are estimated in a manner consistent with the provisions of the reinsurance agreements and consistent with the establishment of the liability of the Company. Allowances are established for amounts deemed uncollectible if any. |
Income Taxes | Income Taxes . Income tax provisions are based on the asset and liability method. Deferred federal and state income taxes have been provided for temporary differences between the tax basis of assets and liabilities and their reported amounts in the consolidated financial statements, net of valuation allowance if any. The Company reviews its deferred tax assets for recoverability. |
Income (Loss) Per Share of Common Stock | Income (Loss) Per Share of Common Stock . Basic earnings per share is computed by dividing the Company’s net income (loss) available to common stockholders, by the weighted-average number of shares of Common Stock outstanding during the period. Diluted earnings per share is computed by dividing the Company’s net income (loss) by the weighted average number of shares of Common Stock outstanding during the period and the impact of all dilutive potential common shares, primarily preferred stock, unvested shares and options. The dilutive impact of stock options and unvested shares is determined by applying the treasury stock method and the dilutive impact of the preferred stock is determined by applying the “if converted” method. |
Fair Value Measurements | Fair Value Measurements . The Company’s policy is to record transfers of assets and liabilities, if any, between Level 1 and Level 2 at their fair values as of the end of each reporting period, consistent with the date of the determination of fair value. |
Share-based Compensation | Share-based Compensation. The Company accounts for share-based compensation based on the estimated grant-date fair value. The Company recognizes these compensation costs in general and administrative expenses and generally amortizes them on a straight-line basis over the requisite service period of the award, which is the vesting term. Individual tranches of performance-based awards are amortized separately since the vesting of each tranche is subject to independent annual measures. The fair value of stock option awards are estimated using the Black-Scholes option pricing model with the grant-date assumptions discussed in “— .” The fair value of the restricted share grants are determined based on the market price on the date of grant. |
Statutory Accounting | Statutory Accounting. UPCIC and APPCIC prepare statutory financial statements in conformity with accounting practices prescribed or permitted by the Florida Office of Insurance Regulation (the “FLOIR”). The FLOIR requires that insurance companies domiciled in Florida prepare their statutory financial statements in accordance with the Manual (the “Manual”), as modified by the FLOIR. Accordingly, the admitted assets, liabilities and capital and surplus of UPCIC and APPCIC as of December 31, 2016 and 2015 and the results of operations and cash flows, for the years ended December 31, 2016, 2015 and 2014, have been determined in accordance with statutory accounting principles, but adjusted to GAAP for purposes of these financial statements. The statutory accounting principles are designed primarily to demonstrate the ability to meet obligations to policyholders and claimants and, consequently, differ in some respects from GAAP. |
New Accounting Pronouncements | New Accounting Pronouncements In May 2015, the Financial Accounting Standards Board (“FASB”) issued guidance addressing enhanced disclosure requirements for insurers relating to short-duration insurance contract claims and the unpaid claims liability rollforward for short-duration contracts. The disclosures are intended to provide users of financial statements with more transparent information about an insurance entity’s initial claim estimates and subsequent adjustments to those estimates, the methodologies and judgments used to estimate claims, and the timing, frequency, and severity of claims. The guidance is effective for annual reporting periods beginning after December 15, 2015. Early application is permitted. The Company adopted this guidance effective January 1, 2016. The adoption of this guidance results in additional disclosures but did not impact the Company’s results of operations, financial position or liquidity. |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Investments Debt And Equity Securities [Abstract] | |
Cost or Amortized Cost and Fair Value of Securities Available for Sale | The following table provides the cost or amortized cost and fair value of securities available for sale as of the dates presented (in thousands): December 31, 2016 Cost or Gross Gross Amortized Unrealized Unrealized Cost Gains Losses Fair Value Fixed Maturities: U.S. government obligations and agencies $ 74,937 $ — $ (670 ) $ 74,267 Corporate bonds 192,328 402 (1,300 ) 191,430 Mortgage-backed and asset-backed securities 216,679 135 (2,038 ) 214,776 Municipal bonds 94,794 130 (3,727 ) 91,197 Redeemable preferred stock 12,723 125 (157 ) 12,691 Equity Securities: Common stock 214 — (121 ) 93 Mutual funds 53,900 407 (3,597 ) 50,710 Short-term investments 5,000 2 — 5,002 Total $ 650,575 $ 1,201 $ (11,610 ) $ 640,166 December 31, 2015 Cost or Gross Gross Amortized Unrealized Unrealized Cost Gains Losses Fair Value Fixed Maturities: U.S. government obligations and agencies $ 126,209 $ — $ (867 ) $ 125,342 Corporate bonds 126,421 137 (1,041 ) 125,517 Mortgage-backed and asset-backed securities 151,328 97 (1,265 ) 150,160 Redeemable preferred stock 9,665 429 (29 ) 10,065 Other 5,000 — (1 ) 4,999 Equity Securities: Common stock 10,991 15 (244 ) 10,762 Mutual funds 35,221 5 (3,774 ) 31,452 Short-term investments 25,011 10 — 25,021 Total $ 489,846 $ 693 $ (7,221 ) $ 483,318 |
Schedule of Credit Quality of Investment Securities With Contractual Maturities or The Issuer of Such Securities | The following table provides the credit quality of investment securities with contractual maturities or the issuer of such securities as of the dates presented (in thousands): December 31, 2016 December 31, 2015 % of Total % of Total Comparable Ratings Fair Value Fair Value Fair Value Fair Value AAA $ 131,260 22.3 % $ 103,097 23.4 % AA 275,480 46.7 % 189,600 43.0 % A 107,418 18.2 % 83,850 19.0 % BBB 67,263 11.4 % 41,408 9.4 % BB and Below 3,444 0.6 % 4,261 1.0 % No Rating Available 4,498 0.8 % 18,888 4.2 % Total $ 589,363 100.0 % $ 441,104 100.0 % The tables above include comparable credit quality ratings by Standard and Poor’s Rating Services, Inc., Moody’s Investors Service, Inc. and Fitch Ratings, Inc. |
Schedule of Amortized Cost and Fair Value on Mortgage-Backed and Asset-Backed Securities | The following table summarizes the cost or amortized cost and fair value of mortgage-backed and asset-backed securities as of the dates presented (in thousands): December 31, 2016 December 31, 2015 Cost or Cost or Amortized Amortized Cost Fair Value Cost Fair Value Mortgage-backed securities: Agency $ 110,724 $ 109,022 $ 74,353 $ 73,854 Non-agency 19,408 19,265 10,430 10,183 Asset-backed securities: Auto loan receivables 37,390 37,429 29,883 29,712 Credit card receivables 38,640 38,568 32,225 31,985 Other receivables 10,517 10,492 4,437 4,426 Total $ 216,679 $ 214,776 $ 151,328 $ 150,160 |
Summarized Fair Value and Gross Unrealized Losses on Securities Available for Sale | The following table summarizes the fair value and gross unrealized losses on securities available for sale, aggregated by major investment category and length of time that individual securities have been in a continuous unrealized loss position as of the dates presented (in thousands): December 31, 2016 Less Than 12 Months 12 Months or Longer Number of Unrealized Number of Unrealized Issues Fair Value Losses Issues Fair Value Losses Fixed maturities: U.S. government obligations and agencies 11 $ 70,453 $ (608 ) 2 $ 3,504 $ (62 ) Corporate bonds 116 96,379 (1,219 ) 4 3,250 (80 ) Mortgage-backed and asset-backed securities 73 149,928 (1,923 ) 5 9,660 (115 ) Municipal bonds 69 79,402 (3,726 ) — — — Redeemable preferred stock 50 6,340 (158 ) — — — Equity securities: Common stock 1 18 (7 ) 2 75 (115 ) Mutual funds 3 28,020 (774 ) 2 11,529 (2,823 ) Total 323 $ 430,540 $ (8,415 ) 15 $ 28,018 $ (3,195 ) December 31, 2015 Less Than 12 Months 12 Months or Longer Number of Unrealized Number of Unrealized Issues Fair Value Losses Issues Fair Value Losses Fixed maturities: U.S. government obligations and agencies 10 $ 121,912 $ (690 ) 2 $ 3,429 $ (177 ) Corporate bonds 101 90,717 (927 ) 6 4,789 (114 ) Mortgage-backed and asset-backed securities 51 118,743 (974 ) 6 13,902 (291 ) Redeemable preferred stock 5 764 (29 ) — — — Other 1 4,999 (1 ) — — — Equity securities: Common stock 3 8,690 (148 ) 2 93 (96 ) Mutual funds 3 13,192 (374 ) 1 7,867 (3,400 ) Total 174 $ 359,017 $ (3,143 ) 17 $ 30,080 $ (4,078 ) |
Amortized Cost and Fair Value of Investments With Contractual Maturities | The following table presents the amortized cost and fair value of investments with contractual maturities as of the date presented (in thousands): December 31, 2016 Cost or Amortized Cost Fair Value Due in one year or less $ 48,919 $ 48,920 Due after one year through five years 229,278 228,000 Due after five years through ten years 34,165 33,301 Due after ten years 54,697 51,675 Mortgage-backed and asset-backed securities 216,679 214,776 Perpetual maturity securities 12,723 12,691 Total $ 596,461 $ 589,363 |
Summary of Securities Available for Sale | The following table provides certain information related to securities available for sale during the periods presented (in thousands): Years Ended December 31, 2016 2015 Sales proceeds (fair value) $ 146,576 $ 92,335 Gross realized gains $ 2,329 $ 1,553 Gross realized losses $ (35 ) $ (493 ) |
Investment Income (Expense) Comprised Primarily of Interest and Dividends | The following table presents the components of net investment income, comprised primarily of interest and dividends, for the periods presented (in thousands): Years Ended December 31, 2016 2015 2014 Fixed maturities $ 9,523 $ 5,642 $ 3,329 Equity securities 1,414 1,143 988 Short-term investments 75 246 46 Other (1) 734 409 83 Total investment income 11,746 7,440 4,446 Less: Investment expenses (2) (2,206 ) (2,285 ) (2,071 ) Net investment (expense) income $ 9,540 $ 5,155 $ 2,375 (1) Includes interest earned on cash and cash equivalents and restricted cash and cash equivalents. Also includes investment income earned on real estate investments. (2) Includes bank fees, investment accounting and advisory fees, and expenses associated with real estate investments. |
Schedule of Real Estate Investment | Investment real estate consisted of the following as of the dates presented (in thousands): December 31, 2016 December 31, 2015 Income Producing: Investment real estate $ 6,918 $ 6,220 Less: Accumulated depreciation (281 ) (103 ) 6,637 6,117 Non-Income Producing: Properties under development 4,798 — Investment real estate, net $ 11,435 $ 6,117 |
Reinsurance (Tables)
Reinsurance (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Insurance [Abstract] | |
Summary of Quota-Share Cession Rates by Reinsurance Program | The following table presents quota-share cession rates by reinsurance program and the years they were in effect: Reinsurance Program Cession Rate June 2012 - May 2013 45% June 2013 - May 2014 45% June 2014 - May 2015 30% June 2015 - May 2016 0% June 2016 - May 2017 0% |
Current Ratings from Rating Agencies and Unsecured Net Amounts Due from Reinsurers Whose Aggregate Balance Exceeded 3% of Stockholders' Equity | The following table presents ratings from rating agencies and the unsecured amounts due from the Company’s reinsurers whose aggregate balance exceeded 3% of the Company’s stockholders’ equity as of the dates presented (in thousands): Ratings as of December 31, 2016 Standard and Poor's Moody's Due from as of AM Best Rating Investors December 31, Reinsurer Company Services Service, Inc. 2016 2015 Florida Hurricane Catastrophe Fund n/a n/a n/a $ 46,364 $ 42,086 Odyssey Reinsurance Company A A- A3 — 18,742 Total (1) $ 46,364 $ 60,828 (1) Amounts represent prepaid reinsurance premiums, reinsurance receivables, and net recoverables for paid and unpaid losses, including incurred but not reported reserves, loss adjustment expenses, and offsetting reinsurance payables. n/a No rating available, because entity is not rated. |
Summary of Effects of Reinsurance Arrangements | The Company’s reinsurance arrangements had the following effect on certain items in the Consolidated Statements of Income for the periods presented (in thousands): For the Year Ended December 31, 2016 Losses and Loss Premiums Premiums Adjustment Written Earned Expenses Direct $ 954,617 $ 921,227 $ 303,036 Ceded (298,523 ) (288,811 ) (1,807 ) Net $ 656,094 $ 632,416 $ 301,229 For the Year Ended December 31, 2015 Losses and Loss Premiums Premiums Adjustment Written Earned Expenses Direct $ 883,409 $ 836,792 $ 214,491 Ceded (256,961 ) (332,793 ) (26,752 ) Net $ 626,448 $ 503,999 $ 187,739 For the Year Ended December 31, 2014 Losses and Loss Premiums Premiums Adjustment Written Earned Expenses Direct $ 789,577 $ 777,317 $ 199,181 Ceded (399,730 ) (450,440 ) (75,906 ) Net $ 389,847 $ 326,877 $ 123,275 |
Prepaid Reinsurance Premiums and Reinsurance Recoverable and Receivable | The following prepaid reinsurance premiums and reinsurance recoverable and receivable are reflected in the Consolidated Balance Sheets as of the dates presented (in thousands): As of December 31, 2016 2015 Prepaid reinsurance premiums $ 124,385 $ 114,673 Reinsurance recoverable on unpaid losses and LAE $ 106 $ 13,540 Reinsurance recoverable (payable) on paid losses (1,532 ) 9,313 Reinsurance receivable, net 186 353 Reinsurance recoverable (payable) and receivable $ (1,240 ) $ 23,206 |
Insurance Operations (Tables)
Insurance Operations (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Insurance [Abstract] | |
Beginning and Ending Balances and Changes in DPAC, Net of DRCC | The following table presents the beginning and ending balances and the changes in DPAC, net of DRCC, for the periods presented (in thousands): Years Ended December 31, 2016 2015 2014 DPAC, beginning of year $ 60,019 $ 54,603 $ 54,099 Capitalized Costs 130,243 116,954 108,072 Amortization of DPAC (125,350 ) (111,538 ) (107,568 ) DPAC, end of year $ 64,912 $ 60,019 $ 54,603 DRCC, beginning of year $ — $ 28,943 $ 38,200 Ceding Commissions Written — (5,276 ) 64,810 Earned Ceding Commissions — (23,667 ) (74,067 ) DRCC, end of year $ — $ — $ 28,943 DPAC (DRCC), net, beginning of year $ 60,019 $ 25,660 $ 15,899 Capitalized Costs, net 130,243 122,230 43,262 Amortization of DPAC (DRCC), net (125,350 ) (87,871 ) (33,501 ) DPAC (DRCC), net, end of year $ 64,912 $ 60,019 $ 25,660 |
Statutory Capital and Surplus, and an Amount Representing Ten Percent of Total Liabilities for both UPCIC and APPCIC | The following table presents the amount of capital and surplus calculated in accordance with statutory accounting principles, which differ from GAAP, and an amount representing ten percent of total liabilities for both UPCIC and APPCIC as of the dates presented (in thousands): As of December 31, 2016 2015 Ten percent of total liabilities UPCIC $ 57,560 $ 55,928 APPCIC $ 464 $ 463 Statutory capital and surplus UPCIC $ 313,753 $ 256,987 APPCIC $ 17,280 $ 14,777 |
Recorded Capital Contributions | Through UVECF, the Insurance Entities’ parent company, UVE recorded capital contributions for the periods presented (in thousands): Years Ended December 31, 2016 2015 2014 Capital Contributions $ 2,000 $ — $ — |
Assets Held by Insurance Regulators | The following table represents assets held by insurance regulators as of the dates presented (in thousands): As of December 31, 2016 2015 Restricted cash and cash equivalents $ 2,635 $ 2,635 Investments $ 3,952 $ 3,876 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Property Plant And Equipment [Abstract] | |
Components of Property and Equipment | Property and equipment consisted of the following as of the dates presented (in thousands): As of December 31, 2016 2015 Land $ 4,489 $ 3,987 Building 17,633 17,806 Computers 5,577 5,118 Furniture 1,381 1,284 Automobiles and other vehicles 5,523 5,096 Software 2,035 706 Total 36,638 33,997 Less: Accumulated depreciation (8,527 ) (7,173 ) Net of accumulated deprecation 28,111 26,824 Construction in progress 4,051 241 Property and equipment, net $ 32,162 $ 27,065 |
Realized Gain (Losses) on the Disposal of Property and Equipment | The following table provides realized gains (losses) on the disposal of property and equipment during the periods presented (in thousands): For the Years Ended December 31, 2016 2015 2014 Realized gain (loss) on disposal $ (31 ) $ (26 ) $ (19 ) |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Schedule of Long-Term Debt | Long-term debt consists of the following as of the dates presented (in thousands): As of December 31, 2016 2015 Surplus note $ 14,338 $ 15,809 Term loan — 6,851 Promissory note 690 1,390 Total $ 15,028 $ 24,050 |
Estimate of Principal Payments to Be Made for the Amount Due on the Surplus Note | The following table provides an estimate of principal payments to be made for the amounts due on the surplus note and the Term Loan as of December 31, 2016 (in thousands): 2017 $ 2,161 2018 1,471 2019 1,471 2020 1,471 2021 1,471 Thereafter 6,983 Total $ 15,028 |
Term Loan [Member] | |
Schedule of Long-Term Debt | The following table provides the principal amount and unamortized original issue discount of the Term Loan as of the dates presented (in thousands): As of December 31, 2016 2015 Principal amount $ — $ 7,000 Less: Unamortized discount — (149 ) Term Loan, net of unamortized discount $ — $ 6,851 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Cumulative Convertible Preferred Stock | The following table provides certain information for the convertible Series A preferred stock as of the dates presented (in thousands, except conversion factor): As of December 31, 2016 2015 Shares issued and outstanding 10 10 Conversion factor 2.50 2.50 Common shares resulting if converted 25 25 |
Activity Relating to Common Shares and Contingently Redeemable Common Shares | The following table summarizes the activity relating to shares of the Company’s Common Stock and Contingently Redeemable Common Stock during the periods presented (in thousands): Issued Treasury Outstanding Shares Shares Shares Balance, as of December 31, 2013 43,641 (8,275 ) 35,366 Conversion of preferred stock 65 — 65 Shares repurchased — (2,392 ) (2,392 ) Treasury shares reissued and classified as contingently redeemable common stock (1) — 1,000 1,000 Options exercised 1,900 — 1,900 Restricted stock grant 950 — 950 Shares acquired through cashless exercise (2) — (1,787 ) (1,787 ) Shares cancelled (1,787 ) 1,787 — Balance, as of December 31, 2014 44,769 (9,667 ) 35,102 Shares repurchased — (748 ) (748 ) Options exercised 751 — 751 Restricted stock grant 615 — 615 Shares acquired through cashless exercise (2) — (610 ) (610 ) Shares cancelled (610 ) 610 — Balance, as of December 31, 2015 45,525 (10,415 ) 35,110 Shares repurchased — (441 ) (441 ) Shares reissued — 584 584 Options exercised 124 — 124 Shares acquired through cashless exercise (2) — (325 ) (325 ) Shares cancelled (325 ) 325 — Balance, as of December 31, 2016 45,324 (10,272 ) 35,052 (1) Privately negotiated transaction at $19.00 per share, subject to holding period restrictions as of December 31, 2014. Subsequent to December 31, 2014, such restrictions were removed and contingently redeemable common stock was reclassified to common stock. (2) All shares acquired represent shares tendered to cover the strike price for options and tax withholdings on the intrinsic value of options exercised or restricted stock (as defined in “— Note 9 (Share-Based Compensation) |
Summary of Dividends Declared on its Outstanding Shares of Common Stock to its Shareholders | The Company declared dividends on its outstanding shares of common stock to its shareholders of record as follows for the periods presented (in thousands, except per share amounts): For the Years Ended December 31, 2016 2015 2014 Per Share Aggregate Per Share Aggregate Per Share Aggregate Amount Amount Amount Amount Amount Amount First Quarter $ 0.14 $ 4,915 $ 0.12 $ 4,237 $ 0.10 $ 3,464 Second Quarter $ 0.14 $ 4,913 $ 0.12 $ 4,283 $ 0.10 $ 3,502 Third Quarter $ 0.14 4,903 $ 0.12 $ 4,275 $ 0.10 $ 3,429 Fourth Quarter $ 0.27 9,461 $ 0.27 $ 9,492 $ 0.25 $ 8,845 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Certain Information Related to Stock Options, Restricted Stock and PSUs | The following table provides certain information related to Stock Options, Restricted Stock, and PSUs during the year ended December 31, 2016 (in thousands, except per share data): For the Year Ended December 31, 2016 Stock Options Restricted Stock Performance Share Units Weighted Weighted Weighted Average Weighted Average Average Exercise Aggregate Average Grant Date Number Grant Date Number of Price per Intrinsic Remaining Number Fair Value of Share Fair Value Options Share (1) Value Term of Shares (2) per Share Units (2) per Share Outstanding as of December 31, 2015 2,269 $ 13.22 615 $ 26.04 — $ — Granted 1,114 19.56 — — 173 23.18 Forfeited — — n/a n/a n/a n/a Exercised (124 ) 7.29 n/a n/a n/a n/a Vested n/a n/a (615 ) 26.04 — — Expired (45 ) 4.70 n/a n/a n/a n/a Outstanding as of December 31, 2016 3,214 $ 15.77 $ 40,589 5.05 — $ — 173 $ 23.18 Exercisable as of December 31, 2016 1,249 $ 11.23 $ 21,438 2.49 (1) Unless otherwise specified, such as in the case of the exercise of Stock Options, the per share prices were determined using the closing price of the Company’s Common Stock as quoted on the exchanges on which the Company was listed. Shares issued upon exercise of options represent original issuances in private transactions pursuant to Section 4(2) of the Securities Act of 1933, (2) All shares outstanding as of December 31, 2016 are expected to vest. n/a Not applicable |
Certain Information Regarding Company's Share-Based Compensation | The following table provides certain information in connection with the Company’s share-based compensation arrangements for the periods presented (in thousands): Years Ended December 31, 2016 2015 2014 Compensation expense: Stock options $ 3,641 $ 1,389 $ 675 Restricted stock 3,433 15,997 11,667 Performance share units 3,214 — — Total $ 10,288 $ 17,386 $ 12,342 Deferred tax benefits: Stock options $ 1,392 $ 532 $ 260 Restricted stock 1,312 4,816 83 Performance share units 1,229 — — Total $ 3,933 $ 5,348 $ 343 Realized tax benefits: Stock options $ 724 $ 5,369 $ 7,321 Restricted stock 4,326 — 967 Performance share units — — — Total $ 5,050 $ 5,369 $ 8,288 Excess tax benefits (shortfall): Stock options $ 642 $ 5,310 $ 6,472 Restricted stock (1,796 ) — 534 Performance share units — — — Total $ (1,154 ) $ 5,310 $ 7,006 Weighted average fair value per option or share: Stock option grants $ 6.01 $ 6.34 $ 3.39 Restricted stock grants $ — $ 26.04 $ 12.88 Performance share unit grants $ 23.18 $ — $ — Intrinsic value of options exercised $ 1,894 $ 14,734 $ 18,979 Fair value of restricted stock vested $ 11,319 $ 17,505 $ 28,350 Cash received for strike price and tax withholdings $ 119 $ 519 $ 73 Shares acquired through cashless exercise (1) 325 611 1,787 Value of shares acquired through cashless exercise (1) $ 6,238 $ 15,445 $ 26,947 (1) All shares acquired represent shares tendered to cover the strike price for options and tax withholdings on the intrinsic value of options exercised or Restricted Stock vested. These shares have been cancelled by the Company. |
Unrecognized Compensation Expense and Weighted Average Period | The following table provides the amount of unrecognized compensation expense as of the most recent balance sheet date and the weighted average period over which those expenses will be recorded for both Stock Options, Restricted Stock, and PSUs (dollars in thousands): As of December 31, 2016 Stock Restricted Performance Options Stock Share Units Unrecognized expense $ 7,854 $ — $ 786 Weighted average remaining years 1.92 — 1.56 |
Summary of Assumptions Utilized in the Black-Scholes Model for Stock Options Granted | The following table provides the assumptions utilized in the Black-Scholes model for Stock Options granted during the periods presented: Years Ended December 31, 2016 2015 2014 Weighted-average risk-free interest rate 1.40 % 0.54 % 0.48 % Expected term of option in years 5.44 3.38 2.98 Weighted-average volatility 45.2 % 44.3 % 40.3 % Dividend yield 3.4 % 3.4 % 3.9 % Weighted average grant date fair value per share $ 6.01 $ 6.34 $ 3.39 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Related Party Transactions [Abstract] | |
Payments Made by Company to Related Parties | The following table provides payments made by the Company to related parties for the periods presented (in thousands): Year Ended December 31, 2016 2015 2014 SPC Global RE Advisors LLC $ — $ 90 $ 120 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Components of Income Tax Provision | Significant components of the income tax provision are as follows for the periods presented (in thousands): For the Years Ended December 31, 2016 2015 2014 Current: Federal $ 50,645 $ 61,830 $ 47,245 State and local 8,105 7,402 7,877 Total current expense (benefit) 58,750 69,232 55,122 Deferred: Federal 4,106 (775 ) (152 ) State and local 617 82 (354 ) Total deferred expense (benefit) 4,723 (693 ) (506 ) Income tax expense $ 63,473 $ 68,539 $ 54,616 |
Reconciles Statutory Federal Income Tax Rate to Company's Effective Tax Rate | The following table reconciles the statutory federal income tax rate to the Company’s effective tax rate for the periods presented (in thousands): For the Years Ended December 31, 2016 2015 2014 Expected provision at federal statutory tax rate 35.0 % 35.0 % 35.0 % Increases (decreases) resulting from: Disallowed meals & entertainment 0.3 % 0.2 % 0.4 % Disallowed compensation 0.4 % 1.1 % 4.2 % State income tax, net of federal tax benefit 3.2 % 3.4 % 3.6 % Effect of change in rate — 0.1 % — Other, net 0.1 % (0.6 %) (0.4 %) Total income tax expense (benefit) 39.0 % 39.2 % 42.8 % |
Components of Deferred Taxes | Deferred income taxes represent the temporary differences between the GAAP and tax basis of the Company’s assets and liabilities and available tax loss and credit carryforwards. As of December 31, 2016 and 2015, the significant components of the Company’s deferred taxes consisted of the following (in thousands): As of December 31, 2016 2015 Deferred income tax assets: Unearned premiums $ 26,861 $ 25,082 Advanced premiums 1,314 1,859 Unpaid losses and LAE 374 1,105 Regulatory assessments — 31 Share-based compensation 3,256 5,535 Accrued wages 297 164 Allowance for uncollectible receivables 284 214 Additional tax basis of securities 51 51 Capital loss carryforwards 759 850 Other comprehensive income 3,982 2,521 Other 131 — Total deferred income tax assets 37,309 37,412 Valuation allowance (133 ) — Deferred income tax assets, net of valuation allowance 37,176 37,412 Deferred income tax liabilities: Deferred policy acquisition costs, net (24,812 ) (22,969 ) Prepaid expenses (504 ) (456 ) Fixed assets (880 ) — Other (306 ) (75 ) Total deferred income tax liabilities (26,502 ) (23,500 ) Net deferred income tax asset $ 10,674 $ 13,912 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Reconciles Numerator and Denominator of Basic and Diluted Earnings Per Share Computations | The following table reconciles the numerator (i.e., income) and denominator (i.e., shares) of the basic and diluted earnings per share computations for the periods presented (in thousands, except per share data): Years Ended December 31, 2016 2015 2014 Numerator for EPS: Net income $ 99,410 $ 106,484 $ 72,988 Less: Preferred stock dividends (10 ) (10 ) (13 ) Income available to common stockholders $ 99,400 $ 106,474 $ 72,975 Denominator for EPS: Weighted average common shares outstanding 34,919 34,799 33,569 Plus: Assumed conversion of share-based compensation (1) 706 1,056 1,535 Assumed conversion of preferred stock 25 29 46 Weighted average diluted common shares outstanding 35,650 35,884 35,150 Basic earnings per common share $ 2.85 $ 3.06 $ 2.17 Diluted earnings per common share $ 2.79 $ 2.97 $ 2.08 Weighted average number of antidilutive shares 1,583 311 64 (1) Represents the dilutive effect of unvested Restricted Stock, unvested Performance Share Units, and unexercised Stock Options. |
Other Comprehensive Income (L42
Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | The following table provides the components of other comprehensive income (loss) on a pretax and after-tax basis for the periods presented (in thousands): Years Ended December 31, 2016 2015 2014 Pre-tax Tax After-tax Pre-tax Tax After-tax Pre-tax Tax After-tax Net unrealized gains (losses) on investments available for sale arising during the period $ (1,594 ) (609 ) $ (985 ) $ (2,480 ) $ (963 ) $ (1,517 ) $ 3,252 $ 1,255 $ 1,997 Less: Amounts reclassified from accumulated other comprehensive income (loss) (2,294 ) (877 ) (1,417 ) (1,060 ) (406 ) (654 ) (5,627 ) (2,171 ) (3,456 ) Net current period other comprehensive income (loss) $ (3,888 ) $ (1,486 ) $ (2,402 ) $ (3,540 ) $ (1,369 ) $ (2,171 ) $ (2,375 ) $ (916 ) $ (1,459 ) |
Reclassifications Out of Accumulated Other Comprehensive Income | The following table provides the reclassifications out of accumulated other comprehensive income for the periods presented (in thousands): Amounts Reclassified from Accumulated Other Comprehensive Income Details about Accumulated Other Years Ended December 31, Affected Line Item in the Statement Comprehensive Income Components 2016 2015 2014 Where Net Income is Presented Unrealized gains (losses) on investments available for sale $ 2,294 $ 1,060 $ 5,627 Net realized gains (losses) on investments (877 ) (406 ) (2,171 ) Income taxes, current $ 1,417 $ 654 $ 3,456 Net of tax |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Assets Measured for at Fair Value on Recurring Basis | The following tables set forth by level within the fair value hierarchy the Company’s assets that were measured at fair value on a recurring basis as of the dates presented (in thousands): Fair Value Measurements As of December 31, 2016 Level 1 Level 2 Level 3 Total Fixed maturities: U.S. government obligations and agencies $ — $ 74,267 $ — $ 74,267 Corporate bonds — 191,430 — 191,430 Mortgage-backed and asset-backed securities — 214,776 — 214,776 Municipal bonds — 91,197 — 91,197 Redeemable preferred stock — 12,691 — 12,691 Equity securities: Common stock 93 — — 93 Mutual funds 50,710 — — 50,710 Short-term investments — 5,002 — 5,002 Total assets accounted for at fair value $ 50,803 $ 589,363 $ — $ 640,166 Fair Value Measurements As of December 31, 2015 Level 1 Level 2 Level 3 Total Fixed maturities: U.S. government obligations and agencies $ — $ 125,342 $ — $ 125,342 Corporate bonds — 125,517 — 125,517 Mortgage-backed and asset-backed securities — 150,160 — 150,160 Redeemable preferred stock — 10,065 — 10,065 Other — 4,999 — 4,999 Equity securities: Common stock 10,762 — — 10,762 Mutual funds 31,452 — — 31,452 Short-term investments — 25,021 — 25,021 Total assets accounted for at fair value $ 42,214 $ 441,104 $ — $ 483,318 |
Summarizes Carrying Value and Estimated Fair Values of Financial Instruments not Carried at Fair Value | The following table summarizes the carrying value and estimated fair values of the Company’s financial instruments that are not carried at fair value as of the dates presented (in thousands): As of December 31, 2016 2015 (Level 3) (Level 3) Carrying Estimated Carrying Estimated Value Fair Value Value Fair Value Liabilities (debt): Surplus note $ 14,338 $ 13,282 $ 15,809 $ 14,166 Term loan $ — $ — $ 6,851 $ 6,851 Promissory note $ 690 $ 690 $ 1,390 $ 1,390 |
Liability for Unpaid Losses a44
Liability for Unpaid Losses and Loss Adjustment Expenses (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Insurance Loss Reserves [Abstract] | |
Summary of Incurred Claims, Cumulative Paid Claims and Allocated Claim Adjustments Expenses, Net of Reinsurance | Set forth in the following tables is information about unpaid losses and loss adjustment expenses as of December 31, 2016, net of reinsurance, as well as cumulative claim counts and the total of incurred-but-not-reported liabilities plus expected development on reported claims included within the liability for unpaid losses and LAE (in thousands). The information about unpaid losses and loss adjustment expenses for the years ended December 31, 2012 to 2015, is presented as supplementary information and is unaudited. Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance As of December 31, 2016 Total of Incurred- but-Not-Reported For the Years Ended December 31, Liabilities Plus Accident Year 2012* 2013* 2014* 2015* 2016 Expected Development (Redundancy) on Reported Claims Cumulative Number of Reported Claims 2012 * $ 109,073 $ 102,118 $ 101,888 $ 99,517 $ 95,727 $ (3,399 ) 24,272 2013 * 100,111 96,993 96,012 88,493 (7,650 ) 20,415 2014 * 111,739 118,289 112,251 (9,947 ) 22,347 2015 * 170,381 187,431 (10,114 ) 26,502 2016 269,814 13,321 35,690 Total $ 753,716 *UNAUDITED Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, Accident Year 2012* 2013* 2014* 2015* 2016 2012 * $ 54,155 $ 89,039 $ 94,817 $ 97,962 $ 98,510 2013 * 61,117 88,843 93,489 95,059 2014 * 69,703 112,059 119,798 2015 * 115,328 191,481 2016 204,122 Total $ 708,970 All outstanding liabilities before 2012, net of reinsurance* 381 Liabilities for claims and claim adjustment expenses, net of reinsurance $ 45,127 *UNAUDITED |
Reconciliation of Net Incurred and Paid Claims Development Tables to Liability for Unpaid Losses and LAE | Set forth is the following reconciliation of the net incurred and paid claims development tables to the liability for unpaid losses and LAE in the consolidated Balance Sheet as of December 31, 2016 (in thousands): December 31, 2016 Liabilities for unpaid claims and claim adjustment expenses, net of reinsurance $ 45,127 Reinsurance recoverable on unpaid claims 106 Unallocated claims adjustment expenses and other 13,261 Total gross liability for unpaid claims and claim adjustment expense $ 58,494 |
Supplementary Information About Average Historical Claims Duration | Set forth is the supplementary information about average historical claims duration as of December 31, 2016: Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance Years 1 2 3 4 5 64.0 % 14.6 % 8.7 % 5.6 % 3.5 % |
Change in Liability for Unpaid Losses and LAE | Set forth in the following table is the change in liability for unpaid losses and LAE for the periods presented (in thousands): Years Ended December 31, 2016 2015 2014 Balance at beginning of year $ 98,840 $ 134,353 $ 159,222 Less: Reinsurance recoverable (13,540 ) (47,350 ) (68,584 ) Net balance at beginning of period 85,300 87,003 90,638 Incurred (recovered) related to: Current year 305,919 188,040 124,011 Prior years (4,690 ) (301 ) (736 ) Total incurred 301,229 187,739 123,275 Paid related to: Current year 229,761 123,952 73,981 Prior years 98,380 65,490 52,929 Total paid 328,141 189,442 126,910 Net balance at end of period 58,388 85,300 87,003 Plus: Reinsurance recoverable 106 13,540 47,350 Balance at end of year $ 58,494 $ 98,840 $ 134,353 |
Quarterly Results for 2016 an45
Quarterly Results for 2016 and 2015 (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of Quarterly Results for the Periods Presented | The following table provides a summary of quarterly results for the periods presented (in thousands except per share data): First Second Third Fourth Quarter Quarter Quarter Quarter For the Year Ended December 31, 2016 Premiums earned, net $ 152,448 $ 156,461 $ 159,534 $ 163,973 Investment income 1,605 2,142 2,304 3,489 Total revenues 164,446 169,802 172,436 178,605 Total expenses 123,347 114,908 128,273 155,878 Net income 25,226 33,647 26,882 13,655 Basic earnings per share $ 0.73 $ 0.96 $ 0.77 $ 0.39 Diluted earnings per share $ 0.71 $ 0.94 $ 0.75 $ 0.38 For the Year Ended December 31, 2015 Premiums earned, net $ 94,360 $ 112,888 $ 146,153 $ 150,598 Investment income 862 1,207 1,307 1,779 Total revenues 103,810 123,591 157,043 162,100 Total expenses 65,787 82,371 109,143 114,220 Net income 22,330 24,704 30,298 29,152 Basic earnings per share $ 0.65 $ 0.71 $ 0.87 $ 0.84 Diluted earnings per share $ 0.62 $ 0.69 $ 0.84 $ 0.82 |
Nature of Operations and Basi46
Nature of Operations and Basis of Presentation - Additional Information (Detail) $ / shares in Units, $ in Thousands | Apr. 28, 2016USD ($)$ / sharesshares | Apr. 30, 2016USD ($)$ / shares | Dec. 31, 2016USD ($)State |
Equity [Line Items] | |||
Number of states | State | 14 | ||
Issuance of common stock | $ 10,000 | ||
Private Placement [Member] | RenaissanceRe Ventures Ltd [Member] | |||
Equity [Line Items] | |||
Number of common stock, shares issued | shares | 583,771 | ||
Common stock, price per share | $ / shares | $ 17.13 | $ 17.13 | |
Issuance of common stock | $ 10,000 | $ 10,000 | |
Proceeds used to cancellation of outstanding indebtedness | 7,035 | 7,035 | |
Cash proceeds from private placement | $ 2,965 | $ 2,965 |
Significant Accounting Polici47
Significant Accounting Policies - Additional Information (Detail) | 12 Months Ended | |
Dec. 31, 2016USD ($)Installment | Dec. 31, 2015USD ($) | |
Schedule Of Significant Accounting Policies [Line Items] | ||
Maximum maturity period of highly liquid investments | 3 months | |
Allowances for doubtful accounts | $ | $ 527,000 | $ 344,000 |
Accruals for premium deficiency | $ | $ 0 | $ 0 |
Minimum [Member] | ||
Schedule Of Significant Accounting Policies [Line Items] | ||
Short-term investment maturity period | 3 months | |
Useful life of property and equipment | 3 years | |
Number of installments to pay policy premiums | Installment | 2 | |
Maximum [Member] | ||
Schedule Of Significant Accounting Policies [Line Items] | ||
Useful life of property and equipment | 27 years 6 months | |
Number of installments to pay policy premiums | Installment | 4 |
Investments - Cost or Amortized
Investments - Cost or Amortized Cost and Fair Value of Securities Available for Sale (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Schedule Of Available For Sale Securities [Line Items] | ||
Cost or Amortized Cost | $ 650,575 | $ 489,846 |
Gross Unrealized Gains | 1,201 | 693 |
Gross Unrealized Losses | (11,610) | (7,221) |
Fair Value | 640,166 | 483,318 |
Short-term Investments [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Cost or Amortized Cost | 5,000 | 25,011 |
Gross Unrealized Gains | 2 | 10 |
Fair Value | 5,002 | 25,021 |
U.S. Government Obligations and Agencies [Member] | Fixed Maturities [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Cost or Amortized Cost | 74,937 | 126,209 |
Gross Unrealized Losses | (670) | (867) |
Fair Value | 74,267 | 125,342 |
Corporate Bonds [Member] | Fixed Maturities [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Cost or Amortized Cost | 192,328 | 126,421 |
Gross Unrealized Gains | 402 | 137 |
Gross Unrealized Losses | (1,300) | (1,041) |
Fair Value | 191,430 | 125,517 |
Mortgage-Backed and Asset-Backed Securities [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Cost or Amortized Cost | 216,679 | 151,328 |
Fair Value | 214,776 | 150,160 |
Mortgage-Backed and Asset-Backed Securities [Member] | Fixed Maturities [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Cost or Amortized Cost | 216,679 | 151,328 |
Gross Unrealized Gains | 135 | 97 |
Gross Unrealized Losses | (2,038) | (1,265) |
Fair Value | 214,776 | 150,160 |
Municipal Bonds [Member] | Fixed Maturities [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Cost or Amortized Cost | 94,794 | |
Gross Unrealized Gains | 130 | |
Gross Unrealized Losses | (3,727) | |
Fair Value | 91,197 | |
Redeemable Preferred Stock [Member] | Fixed Maturities [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Cost or Amortized Cost | 12,723 | 9,665 |
Gross Unrealized Gains | 125 | 429 |
Gross Unrealized Losses | (157) | (29) |
Fair Value | 12,691 | 10,065 |
Common Stock [Member] | Equity Securities [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Cost or Amortized Cost | 214 | 10,991 |
Gross Unrealized Gains | 15 | |
Gross Unrealized Losses | (121) | (244) |
Fair Value | 93 | 10,762 |
Mutual Funds [Member] | Equity Securities [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Cost or Amortized Cost | 53,900 | 35,221 |
Gross Unrealized Gains | 407 | 5 |
Gross Unrealized Losses | (3,597) | (3,774) |
Fair Value | $ 50,710 | 31,452 |
Other [Member] | Fixed Maturities [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Cost or Amortized Cost | 5,000 | |
Gross Unrealized Losses | (1) | |
Fair Value | $ 4,999 |
Investments - Schedule of Credi
Investments - Schedule of Credit Quality of Investment Securities With Contractual Maturities or The Issuer of Such Securities (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Schedule Of Available For Sale Securities [Line Items] | ||
Fair Value | $ 589,363 | $ 441,104 |
Percentage of Total Fair Value | 100.00% | 100.00% |
Comparable Ratings, AAA Rating [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fair Value | $ 131,260 | $ 103,097 |
Percentage of Total Fair Value | 22.30% | 23.40% |
Comparable Ratings, AA Rating [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fair Value | $ 275,480 | $ 189,600 |
Percentage of Total Fair Value | 46.70% | 43.00% |
Comparable Ratings, A Rating [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fair Value | $ 107,418 | $ 83,850 |
Percentage of Total Fair Value | 18.20% | 19.00% |
Comparable Ratings, BBB Rating [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fair Value | $ 67,263 | $ 41,408 |
Percentage of Total Fair Value | 11.40% | 9.40% |
Comparable Ratings, BB and Below Rating [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fair Value | $ 3,444 | $ 4,261 |
Percentage of Total Fair Value | 0.60% | 1.00% |
Comparable Ratings, No Rating Available [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fair Value | $ 4,498 | $ 18,888 |
Percentage of Total Fair Value | 0.80% | 4.20% |
Investments - Schedule of Amort
Investments - Schedule of Amortized Cost and Fair Value on Mortgage-Backed and Asset-Backed Securities (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Schedule Of Available For Sale Securities [Line Items] | ||
Cost or Amortized Cost | $ 650,575 | $ 489,846 |
Fair Value | 640,166 | 483,318 |
Mortgage-backed securities [Member] | Agency [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Cost or Amortized Cost | 110,724 | 74,353 |
Fair Value | 109,022 | 73,854 |
Mortgage-backed securities [Member] | Non Agency [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Cost or Amortized Cost | 19,408 | 10,430 |
Fair Value | 19,265 | 10,183 |
Asset-backed securities [Member] | Auto Loans [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Cost or Amortized Cost | 37,390 | 29,883 |
Fair Value | 37,429 | 29,712 |
Asset-backed securities [Member] | Credit Card Receivables [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Cost or Amortized Cost | 38,640 | 32,225 |
Fair Value | 38,568 | 31,985 |
Asset-backed securities [Member] | Other Receivables [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Cost or Amortized Cost | 10,517 | 4,437 |
Fair Value | 10,492 | 4,426 |
Mortgage-Backed and Asset-Backed Securities [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Cost or Amortized Cost | 216,679 | 151,328 |
Fair Value | $ 214,776 | $ 150,160 |
Investments - Summarized Fair V
Investments - Summarized Fair Value and Gross Unrealized Losses on Securities Available for Sale (Detail) $ in Thousands | Dec. 31, 2016USD ($)Security | Dec. 31, 2015USD ($)Security |
Schedule Of Available For Sale Securities [Line Items] | ||
Less than 12 months, Number of issues | Security | 323 | 174 |
Less than 12 months, Fair value | $ 430,540 | $ 359,017 |
Less than 12 months, Unrealized losses | $ (8,415) | $ (3,143) |
12 months or longer, Number of issues | Security | 15 | 17 |
12 months or longer, Fair value | $ 28,018 | $ 30,080 |
12 months or longer, Unrealized losses | (3,195) | $ (4,078) |
Equity Securities [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
12 months or longer, Fair value | $ 11,600 | |
U.S. Government Obligations and Agencies [Member] | Fixed Maturities [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Less than 12 months, Number of issues | Security | 11 | 10 |
Less than 12 months, Fair value | $ 70,453 | $ 121,912 |
Less than 12 months, Unrealized losses | $ (608) | $ (690) |
12 months or longer, Number of issues | Security | 2 | 2 |
12 months or longer, Fair value | $ 3,504 | $ 3,429 |
12 months or longer, Unrealized losses | $ (62) | $ (177) |
Corporate Bonds [Member] | Fixed Maturities [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Less than 12 months, Number of issues | Security | 116 | 101 |
Less than 12 months, Fair value | $ 96,379 | $ 90,717 |
Less than 12 months, Unrealized losses | $ (1,219) | $ (927) |
12 months or longer, Number of issues | Security | 4 | 6 |
12 months or longer, Fair value | $ 3,250 | $ 4,789 |
12 months or longer, Unrealized losses | $ (80) | $ (114) |
Mortgage-Backed and Asset-Backed Securities [Member] | Fixed Maturities [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Less than 12 months, Number of issues | Security | 73 | 51 |
Less than 12 months, Fair value | $ 149,928 | $ 118,743 |
Less than 12 months, Unrealized losses | $ (1,923) | $ (974) |
12 months or longer, Number of issues | Security | 5 | 6 |
12 months or longer, Fair value | $ 9,660 | $ 13,902 |
12 months or longer, Unrealized losses | $ (115) | $ (291) |
Municipal Bonds [Member] | Fixed Maturities [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Less than 12 months, Number of issues | Security | 69 | |
Less than 12 months, Fair value | $ 79,402 | |
Less than 12 months, Unrealized losses | $ (3,726) | |
Redeemable Preferred Stock [Member] | Fixed Maturities [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Less than 12 months, Number of issues | Security | 50 | 5 |
Less than 12 months, Fair value | $ 6,340 | $ 764 |
Less than 12 months, Unrealized losses | $ (158) | $ (29) |
Common Stock [Member] | Equity Securities [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Less than 12 months, Number of issues | Security | 1 | 3 |
Less than 12 months, Fair value | $ 18 | $ 8,690 |
Less than 12 months, Unrealized losses | $ (7) | $ (148) |
12 months or longer, Number of issues | Security | 2 | 2 |
12 months or longer, Fair value | $ 75 | $ 93 |
12 months or longer, Unrealized losses | $ (115) | $ (96) |
Mutual Funds [Member] | Equity Securities [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Less than 12 months, Number of issues | Security | 3 | 3 |
Less than 12 months, Fair value | $ 28,020 | $ 13,192 |
Less than 12 months, Unrealized losses | $ (774) | $ (374) |
12 months or longer, Number of issues | Security | 2 | 1 |
12 months or longer, Fair value | $ 11,529 | $ 7,867 |
12 months or longer, Unrealized losses | $ (2,823) | $ (3,400) |
Other [Member] | Fixed Maturities [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Less than 12 months, Number of issues | Security | 1 | |
Less than 12 months, Fair value | $ 4,999 | |
Less than 12 months, Unrealized losses | $ (1) |
Investments - Additional Inform
Investments - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Schedule Of Available For Sale Securities [Line Items] | ||
Equity securities, Unrealized loss position twelve months or longer | $ 28,018,000 | $ 30,080,000 |
Equity securities, Unrealized loss | 2,900,000 | |
Equity Securities [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Equity securities, Unrealized loss position twelve months or longer | 11,600,000 | |
OTTI losses on equity portfolio | $ 0 |
Investments - Amortized Cost an
Investments - Amortized Cost and Fair Value of Investments With Contractual Maturities (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Schedule Of Available For Sale Securities [Line Items] | ||
Fixed Maturities Securities Available for Sale, Due in one year or less, Amortized cost | $ 48,919 | |
Fixed Maturities Securities Available for Sale, Due after one year through five years, Amortized cost | 229,278 | |
Fixed Maturities Securities Available for Sale, Due after five years through ten years, Amortized cost | 34,165 | |
Fixed Maturities Securities Available for Sale, Due after ten years, Amortized cost | 54,697 | |
Fixed Maturities Securities Available for Sale, Perpetual Maturity, Amortized Cost | 12,723 | |
Fixed Maturities Securities Available for Sale, Amortized cost, Total | 596,461 | |
Fixed Maturities Securities Available for Sale, Due in one year or less, Fair Value | 48,920 | |
Fixed Maturities Securities Available for Sale, Due after one year through five years, Fair Value | 228,000 | |
Fixed Maturities Securities Available for Sale, Due after five years through ten years, Fair Value | 33,301 | |
Fixed Maturities Securities Available for Sale, Due after ten years, Fair Value | 51,675 | |
Fixed Maturities Securities Available for Sale, Perpetual Maturity, Fair Value | 12,691 | |
Fixed Maturities Securities Available for Sale, Fair Value, Total | 589,363 | $ 441,104 |
Mortgage-Backed and Asset-Backed Securities [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fixed Maturities Securities Available for Sale, Mortgage-backed Securities, Amortized cost | 216,679 | |
Fixed Maturities Securities Available for Sale, Mortgage-backed Securities, Fair Value | $ 214,776 |
Investments - Summary of Securi
Investments - Summary of Securities Available for Sale (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Investments Debt And Equity Securities [Abstract] | ||
Sales proceeds (fair value) | $ 146,576 | $ 92,335 |
Gross realized gains | 2,329 | 1,553 |
Gross realized losses | $ (35) | $ (493) |
Investments - Investment Income
Investments - Investment Income (Expense) Comprised Primarily of Interest and Dividends (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Net Investment Income [Line Items] | |||||||||||
Total investment income | $ 11,746 | $ 7,440 | $ 4,446 | ||||||||
Less: Investment expenses | (2,206) | (2,285) | (2,071) | ||||||||
Net investment (expense) income | $ 3,489 | $ 2,304 | $ 2,142 | $ 1,605 | $ 1,779 | $ 1,307 | $ 1,207 | $ 862 | 9,540 | 5,155 | 2,375 |
Fixed Maturities [Member] | |||||||||||
Net Investment Income [Line Items] | |||||||||||
Investment income | 9,523 | 5,642 | 3,329 | ||||||||
Equity Securities [Member] | |||||||||||
Net Investment Income [Line Items] | |||||||||||
Investment income | 1,414 | 1,143 | 988 | ||||||||
Short-term Investments [Member] | |||||||||||
Net Investment Income [Line Items] | |||||||||||
Investment income | 75 | 246 | 46 | ||||||||
Other [Member] | |||||||||||
Net Investment Income [Line Items] | |||||||||||
Investment income | $ 734 | $ 409 | $ 83 |
Investments - Schedule of Real
Investments - Schedule of Real Estate Investment (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Real Estate [Line Items] | ||
Investment real estate, net | $ 11,435 | $ 6,117 |
Income Producing [Member] | ||
Real Estate [Line Items] | ||
Investment real estate | 6,918 | 6,220 |
Less: Accumulated depreciation | (281) | (103) |
Investment real estate, net | 6,637 | $ 6,117 |
Non-Income Producing [Member] | ||
Real Estate [Line Items] | ||
Properties under development | $ 4,798 |
Reinsurance - Additional Inform
Reinsurance - Additional Information (Detail) | 12 Months Ended | |
Dec. 31, 2016 | May 31, 2015 | |
Stockholders' Equity, Total [Member] | Amounts Due From Reinsurers [Member] | ||
Effects of Reinsurance [Line Items] | ||
Unsecured amounts due from reinsurers exceeding a fixed percentage of stockholders equity | 3.00% | |
Reinsurance Program Effective June One Two Thousand Fourteen [Member] | ||
Effects of Reinsurance [Line Items] | ||
Percentage of premium ceded | 30.00% |
Reinsurance - Summary of Quota-
Reinsurance - Summary of Quota-Share Cession Rates by Reinsurance Program (Detail) | 12 Months Ended |
Dec. 31, 2016 | |
June 2012 - May 2013 | |
Quota Share Cession Rate By Reinsurance Program [Line Items] | |
Percentage of cession rate | 45.00% |
June 2013 - May 2014 | |
Quota Share Cession Rate By Reinsurance Program [Line Items] | |
Percentage of cession rate | 45.00% |
June 2014 - May 2015 | |
Quota Share Cession Rate By Reinsurance Program [Line Items] | |
Percentage of cession rate | 30.00% |
June 2015 - May 2016 | |
Quota Share Cession Rate By Reinsurance Program [Line Items] | |
Percentage of cession rate | 0.00% |
June 2016 - May 2017 | |
Quota Share Cession Rate By Reinsurance Program [Line Items] | |
Percentage of cession rate | 0.00% |
Reinsurance - Current Ratings f
Reinsurance - Current Ratings from Rating Agencies and Unsecured Net Amounts Due from Reinsurers Whose Aggregate Balance Exceeded 3% of Stockholders' Equity (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Ceded Credit Risk [Line Items] | ||
Reinsurance unsecured amounts due from reinsurers total | $ 46,364 | $ 60,828 |
Florida Hurricane Catastrophe Fund [Member] | ||
Ceded Credit Risk [Line Items] | ||
Reinsurance unsecured amounts due from reinsurers total | $ 46,364 | 42,086 |
Odyssey Reinsurance Company [Member] | AM Best, A Rating [Member] | Standard & Poor's, A- Rating [Member] | Moody's, A3 Rating [Member] | ||
Ceded Credit Risk [Line Items] | ||
Reinsurance unsecured amounts due from reinsurers total | $ 18,742 |
Reinsurance - Reinsurance Arran
Reinsurance - Reinsurance Arrangements (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Reinsurance Disclosures [Abstract] | |||||||||||
Direct premiums written | $ 954,617 | $ 883,409 | $ 789,577 | ||||||||
Ceded premiums written | (298,523) | (256,961) | (399,730) | ||||||||
Net premiums written | 656,094 | 626,448 | 389,847 | ||||||||
Direct Premiums Earned | 921,227 | 836,792 | 777,317 | ||||||||
Ceded premium earned | (288,811) | (332,793) | (450,440) | ||||||||
Premiums earned, net | $ 163,973 | $ 159,534 | $ 156,461 | $ 152,448 | $ 150,598 | $ 146,153 | $ 112,888 | $ 94,360 | 632,416 | 503,999 | 326,877 |
Direct Losses and Loss Adjustment Expenses | 303,036 | 214,491 | 199,181 | ||||||||
Ceded Losses and Loss Adjustment Expenses | (1,807) | (26,752) | (75,906) | ||||||||
Net Losses and Loss Adjustment Expenses | $ 301,229 | $ 187,739 | $ 123,275 |
Reinsurance - Prepaid Reinsuran
Reinsurance - Prepaid Reinsurance Premiums and Reinsurance Recoverable and Receivable (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Reinsurance Disclosures [Abstract] | ||||
Prepaid reinsurance premiums | $ 124,385 | $ 114,673 | ||
Reinsurance recoverable on unpaid losses and LAE | 106 | 13,540 | $ 47,350 | $ 68,584 |
Reinsurance recoverable (payable) on paid losses | (1,532) | 9,313 | ||
Reinsurance receivable, net | 186 | 353 | ||
Reinsurance recoverable (payable) and receivable | $ (1,240) | $ 23,206 |
Insurance Operations - Beginnin
Insurance Operations - Beginning and Ending Balances and Changes in DPAC, Net of DRCC (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Insurance [Abstract] | |||
DPAC, beginning of year | $ 60,019 | $ 54,603 | $ 54,099 |
Capitalized Costs | 130,243 | 116,954 | 108,072 |
Amortization of DPAC | (125,350) | (111,538) | (107,568) |
DPAC, end of year | 64,912 | 60,019 | 54,603 |
DRCC, beginning of year | 28,943 | 38,200 | |
Ceding Commissions Written | (5,276) | 64,810 | |
Earned Ceding Commissions | (23,667) | (74,067) | |
DRCC, end of year | 28,943 | ||
DPAC (DRCC), net, beginning of year | 60,019 | 25,660 | 15,899 |
Capitalized Costs, net | 130,243 | 122,230 | 43,262 |
Amortization of DPAC (DRCC), net | (125,350) | (87,871) | (33,501) |
DPAC (DRCC), net, end of year | $ 64,912 | $ 60,019 | $ 25,660 |
Insurance Operations - Addition
Insurance Operations - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2016USD ($) | |
UPCIC [Member] | |
Statutory Accounting Practices [Line Items] | |
Statutory ordinary dividend capacity | $ 57,700,000 |
UPCIC and APPCIC [Member] | |
Statutory Accounting Practices [Line Items] | |
Dividend paid to UVECF | $ 0 |
Minimum capitalization rate | 10.00% |
Statutory Accounting Practices, Statutory Capital and Surplus Required | $ 10,000,000 |
Minimum capital required | Greater of ten percent of the insurer’s total liabilities or $10.0 million. |
Insurance Operations - Statutor
Insurance Operations - Statutory Capital and Surplus, and an Amount Representing Ten Percent of Total Liabilities for both UPCIC and APPCIC (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Statutory Accounting Practices [Line Items] | ||
Statutory capital and surplus | $ 14,300 | |
UPCIC [Member] | ||
Statutory Accounting Practices [Line Items] | ||
Ten percent of total liabilities | 57,560 | $ 55,928 |
Statutory capital and surplus | 313,753 | 256,987 |
APPCIC [Member] | ||
Statutory Accounting Practices [Line Items] | ||
Ten percent of total liabilities | 464 | 463 |
Statutory capital and surplus | $ 17,280 | $ 14,777 |
Insurance Operations - Recorded
Insurance Operations - Recorded Capital Contributions (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Insurance [Abstract] | |
Capital Contributions | $ 2,000 |
Insurance Operations - Assets H
Insurance Operations - Assets Held by Insurance Regulators (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Restricted Cash and Cash Equivalents [Member] | ||
Statutory Accounting Practices [Line Items] | ||
Assets held by insurance regulators | $ 2,635 | $ 2,635 |
Investments [Member] | ||
Statutory Accounting Practices [Line Items] | ||
Assets held by insurance regulators | $ 3,952 | $ 3,876 |
Property and Equipment - Compon
Property and Equipment - Components of Property and Equipment (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Property Plant And Equipment [Line Items] | ||
Total | $ 36,638 | $ 33,997 |
Less: Accumulated depreciation | (8,527) | (7,173) |
Property and equipment, net | 32,162 | 27,065 |
Land [Member] | ||
Property Plant And Equipment [Line Items] | ||
Total | 4,489 | 3,987 |
Building [Member] | ||
Property Plant And Equipment [Line Items] | ||
Total | 17,633 | 17,806 |
Computers [Member] | ||
Property Plant And Equipment [Line Items] | ||
Total | 5,577 | 5,118 |
Furniture [Member] | ||
Property Plant And Equipment [Line Items] | ||
Total | 1,381 | 1,284 |
Automobiles and Other Vehicles [Member] | ||
Property Plant And Equipment [Line Items] | ||
Total | 5,523 | 5,096 |
Software [Member] | ||
Property Plant And Equipment [Line Items] | ||
Total | 2,035 | 706 |
Net of Accumulated Depreciation [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, net | 28,111 | 26,824 |
Construction in progress [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, net | $ 4,051 | $ 241 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Property Plant And Equipment [Abstract] | |||
Depreciation and amortization | $ 3,242 | $ 2,033 | $ 1,194 |
Property and Equipment - Realiz
Property and Equipment - Realized Gain (Losses) on the Disposal of Property and Equipment (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Property Plant And Equipment [Abstract] | |||
Realized gain (loss) on disposal | $ (31) | $ (26) | $ (19) |
Long-Term Debt - Schedule of Lo
Long-Term Debt - Schedule of Long-Term Debt (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | ||
Total | $ 15,028 | $ 24,050 |
Surplus Note [Member] | ||
Debt Instrument [Line Items] | ||
Notes payable | 14,338 | 15,809 |
Term Loan [Member] | ||
Debt Instrument [Line Items] | ||
Term loan | 6,851 | |
Promissory Note [Member] | ||
Debt Instrument [Line Items] | ||
Notes payable | $ 690 | $ 1,390 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Detail) - USD ($) | Apr. 28, 2016 | Mar. 29, 2013 | Apr. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | May 23, 2013 | Nov. 09, 2006 |
Debt Instrument [Line Items] | ||||||||
Statutory capital and surplus | $ 14,300,000 | |||||||
Principal repayments of Surplus Note | 1,500,000 | $ 1,500,000 | $ 1,500,000 | |||||
Surplus during the term of surplus note | 50,000,000 | |||||||
Issuance of common stock | 10,000,000 | |||||||
Amortization of discount | 149,000 | 521,000 | 840,000 | |||||
Interest Expense | $ 400,000 | $ 1,000,000 | $ 1,500,000 | |||||
Deutsche Bank [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Unsecured line of credit, maximum borrowing capacity | $ 15,000,000 | |||||||
DB loan, maturity date | Jul. 31, 2017 | |||||||
DB loan, Interest rate | LIBOR plus a margin of 5.50% or Deutsche Bank’s prime rate plus a margin of 3.50% | |||||||
Basis spread on LIBOR rate | 5.50% | |||||||
Basis spread on Prime rate | 3.50% | |||||||
Unsecured line of credit, amount drawn | $ 0 | |||||||
Private Placement [Member] | RenaissanceRe Ventures Ltd [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Number of common stock, shares issued | 583,771 | |||||||
Common stock, price per share | $ 17.13 | $ 17.13 | ||||||
Issuance of common stock | $ 10,000,000 | $ 10,000,000 | ||||||
Cash proceeds from private placement | 2,965,000 | 2,965,000 | ||||||
Proceeds used to cancellation of outstanding indebtedness, including accrued interest | $ 7,035,000 | $ 7,035,000 | ||||||
Surplus Note [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Unsecured term loan agreement | $ 25,000,000 | |||||||
Effective interest rate | 1.88% | 2.21% | 2.73% | |||||
Principal repayments of Surplus Note | $ 368,000 | |||||||
Maturity year of debt instrument | through 2,026 | |||||||
Net written premium to surplus ratio | 200.00% | |||||||
Gross written premium to surplus ratio | 600.00% | |||||||
Surplus Note [Member] | Hurricane [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Surplus and Reinsurance sufficient to cover in excess of UPCIC probable maximum loss | 1-in-100 year | |||||||
Term Loan [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Unsecured term loan agreement | $ 7,000,000 | $ 20,000,000 | ||||||
Effective interest rate | 5.99% | |||||||
Surplus note maturity date | May 23, 2016 | |||||||
Stated interest rate on Term Loan | 0.50% | |||||||
Frequency of periodic payment description | Principal was paid annually on the anniversary of the closing date in three annual installments and interest was payable in arrears on the same dates as the principal payments. | |||||||
Term Loan is amortized | 3 years | |||||||
Amortization of discount | $ 149,000 | $ 521,000 | $ 840,000 |
Long-Term Debt - Principal Amou
Long-Term Debt - Principal Amount and Unamortized Original Issue Discount (Detail) - Term Loan [Member] - USD ($) $ in Thousands | Dec. 31, 2015 | May 23, 2013 |
Debt Instrument [Line Items] | ||
Principal amount | $ 7,000 | $ 20,000 |
Less: Unamortized discount | (149) | |
Term Loan, net of unamortized discount | $ 6,851 |
Long-term Debt - Estimate of Pr
Long-term Debt - Estimate of Principal Payments to be Made for the Amount Due on the Surplus Note (Detail) $ in Thousands | Dec. 31, 2016USD ($) |
Debt Disclosure [Abstract] | |
2,017 | $ 2,161 |
2,018 | 1,471 |
2,019 | 1,471 |
2,020 | 1,471 |
2,021 | 1,471 |
Thereafter | 6,983 |
Total | $ 15,028 |
Stockholder's Equity - Cumulati
Stockholder's Equity - Cumulative Convertible Preferred Stock (Detail) - shares shares in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Convertible Preferred Stock [Line Items] | ||
Shares issued and outstanding | 10 | 10 |
Series A [Member] | ||
Convertible Preferred Stock [Line Items] | ||
Shares issued and outstanding | 10 | 10 |
Conversion factor | 2.50% | 2.50% |
Common shares resulting if converted | 25 | 25 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - USD ($) | Apr. 28, 2016 | Apr. 30, 2016 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Equity [Line Items] | ||||||||||
Issuance of common stock | $ 10,000,000 | |||||||||
Treasury shares acquired | 98,929 | |||||||||
Shares repurchased during period | $ 2,100,000 | 8,510,000 | $ 18,649,000 | $ 29,736,000 | ||||||
Stock Repurchase Program Expiration Date | Dec. 31, 2017 | |||||||||
Received distributions from the earnings of subsidiaries | 46,900,000 | 58,200,000 | 55,800,000 | |||||||
Capital contributions to subsidiaries | 0 | $ 0 | ||||||||
APPCIC [Member] | ||||||||||
Equity [Line Items] | ||||||||||
Capital contributions to subsidiaries | $ 2,000,000 | |||||||||
Open Market [Member] | ||||||||||
Equity [Line Items] | ||||||||||
Treasury shares acquired | 441,036 | |||||||||
Shares repurchased during period | $ 8,500,000 | |||||||||
Maximum [Member] | ||||||||||
Equity [Line Items] | ||||||||||
Amount of shares authorized to repurchase | $ 20,000,000 | |||||||||
Private Placement [Member] | RenaissanceRe Ventures Ltd [Member] | ||||||||||
Equity [Line Items] | ||||||||||
Number of common stock, shares issued | 583,771 | |||||||||
Common stock, price per share | $ 17.13 | $ 17.13 | ||||||||
Issuance of common stock | $ 10,000,000 | $ 10,000,000 | ||||||||
Cash proceeds from private placement | 2,965,000 | 2,965,000 | ||||||||
Proceeds used to cancellation of outstanding indebtedness, including accrued interest | $ 7,035,000 | $ 7,035,000 | ||||||||
Series A [Member] | ||||||||||
Equity [Line Items] | ||||||||||
Series A preferred stock pays a cumulative dividend | $ 0.25 | $ 0.25 | $ 0.25 | $ 0.25 | ||||||
Preferred stock aggregate dividends | $ 10,000 | $ 10,000 |
Stockholder's Equity - Activity
Stockholder's Equity - Activity Relating to Common Shares and Contingently Redeemable Common Shares (Detail) - shares | 7 Months Ended | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Beginning balance, shares | 45,525,000 | ||||
Beginning balance, shares | (10,415,000) | ||||
Beginning balance, shares | 35,110,000 | ||||
Shares repurchased | (98,929) | ||||
Options exercised | 124,000 | ||||
Ending balance, shares | 45,324,000 | 45,324,000 | 45,525,000 | ||
Ending balance, shares | (10,272,000) | (10,272,000) | (10,415,000) | ||
Ending balance, shares | 35,052,000 | 35,052,000 | 35,110,000 | ||
Stock Compensation Plan [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Beginning balance, shares | 35,110,000 | 35,102,000 | 35,366,000 | ||
Conversion of preferred stock | 65,000 | ||||
Shares repurchased | (441,000) | (748,000) | (2,392,000) | ||
Treasury shares reissued and classified as contingently redeemable common stock | [1] | 1,000,000 | |||
Options exercised | 124,000 | 751,000 | 1,900,000 | ||
Restricted stock grant | 615,000 | 950,000 | |||
Shares acquired through cashless exercise | [2] | (325,000) | (610,000) | (1,787,000) | |
Shares reissued | 584,000 | ||||
Ending balance, shares | 35,052,000 | 35,052,000 | 35,110,000 | 35,102,000 | |
Common Stock [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Beginning balance, shares | 45,525,000 | 44,769,000 | 43,641,000 | ||
Conversion of preferred stock | 65,000 | ||||
Options exercised | 124,000 | 751,000 | 1,900,000 | ||
Restricted stock grant | 615,000 | 950,000 | |||
Shares cancelled | (325,000) | (610,000) | (1,787,000) | ||
Ending balance, shares | 45,324,000 | 45,324,000 | 45,525,000 | 44,769,000 | |
Treasury Stock [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Beginning balance, shares | (10,415,000) | (9,667,000) | (8,275,000) | ||
Shares repurchased | (441,000) | (748,000) | (2,392,000) | ||
Treasury shares reissued and classified as contingently redeemable common stock | [1] | 1,000,000 | |||
Shares acquired through cashless exercise | [2] | (325,000) | (610,000) | (1,787,000) | |
Shares cancelled | 325,000 | 610,000 | 1,787,000 | ||
Shares reissued | 584,000 | ||||
Ending balance, shares | (10,272,000) | (10,272,000) | (10,415,000) | (9,667,000) | |
[1] | Privately negotiated transaction at $19.00 per share, subject to holding period restrictions as of December 31, 2014. Subsequent to December 31, 2014, such restrictions were removed and contingently redeemable common stock was reclassified to common stock. | ||||
[2] | All shares acquired represent shares tendered to cover the strike price for options and tax withholdings on the intrinsic value of options exercised or restricted stock (as defined in “—Note 9 (Share-Based Compensation)”) vested. These shares have been cancelled by the Company. |
Stockholder's Equity - Activi77
Stockholder's Equity - Activity Relating to Common Shares and Contingently Redeemable Common Shares (Parenthetical) (Detail) | Dec. 31, 2014$ / shares |
Equity [Abstract] | |
Redeemable Common Stock. price per share | $ 19 |
Stockholders' Equity - Summary
Stockholders' Equity - Summary of Dividends Declared on its Outstanding Shares of Common Stock to its Shareholders (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Equity [Abstract] | |||||||||||||||
Dividends per share declared on outstanding common stock | $ 0.27 | $ 0.14 | $ 0.14 | $ 0.14 | $ 0.27 | $ 0.12 | $ 0.12 | $ 0.12 | $ 0.25 | $ 0.10 | $ 0.10 | $ 0.10 | $ 0.69 | $ 0.63 | $ 0.55 |
Aggregate amount | $ 9,461 | $ 4,903 | $ 4,913 | $ 4,915 | $ 9,492 | $ 4,275 | $ 4,283 | $ 4,237 | $ 8,845 | $ 3,429 | $ 3,502 | $ 3,464 | $ 24,202 | $ 22,297 | $ 19,253 |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2016shares | |
Outstanding Shares [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Remaining shares reserved for issuance | 2,518,131 |
Stock Option [Member] | Minimum [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Stock option awards, expiration period | 5 years |
Vested and non-vested stock awards, vesting service period | 1 year |
Stock Option [Member] | Maximum [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Stock option awards, expiration period | 10 years |
Vested and non-vested stock awards, vesting service period | 3 years |
Restricted Stock [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Vested and non-vested stock awards, vesting service period | 3 years |
Performance Share Units [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Vested and non-vested stock awards, vesting service period | 3 years |
Conversion ratio of awards vesting | 100.00% |
Share-Based Compensation - Cert
Share-Based Compensation - Certain Information Related to Stock Options and Restricted Stock and PSUs (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Stock Options Number of Options beginning balance | 2,269 | ||
Stock Options Number of Options Granted | 1,114 | ||
Stock Options Number of Options Exercised | (124) | ||
Stock Options Number of Options Expired | (45) | ||
Stock Options Number of Options ending balance | 3,214 | 2,269 | |
Stock Options Number of Options Exercisable | 1,249 | ||
Stock Options Weighted Average Exercise Price per Share Outstanding beginning balance | $ 13.22 | ||
Stock Options Weighted Average Exercise Price per Share Granted | 19.56 | ||
Stock Options Weighted Average Exercise Price per Share Exercised | 7.29 | ||
Stock Options Weighted Average Exercise Price per Share Expired | 4.70 | ||
Stock Options Weighted Average Exercise Price per Share Outstanding ending balance | 15.77 | $ 13.22 | |
Stock Options Weighted Average Exercise Price per Share Exercisable | $ 11.23 | ||
Stock Options Aggregate Intrinsic Value Outstanding | $ 40,589 | ||
Stock Options Aggregate Intrinsic Value Exercisable | $ 21,438 | ||
Stock Options Weighted Average Remaining Term | 5 years 18 days | ||
Exercisable Stock Options Weighted Average Remaining Term | 2 years 5 months 27 days | ||
Restricted Stock [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Number of Shares beginning balance | 615 | ||
Number of Shares Vested | (615) | ||
Number of Shares ending balance | 615 | ||
Weighted Average Grant Date Fair Value per Share beginning balance | $ 26.04 | ||
Weighted Average Grant Date Fair Value per Share Granted | $ 26.04 | $ 12.88 | |
Weighted Average Grant Date Fair Value per Share Vested | $ 26.04 | ||
Weighted Average Grant Date Fair Value per Share ending balance | $ 26.04 | ||
Performance Share Units [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Number of Shares Granted | 173 | ||
Number of Shares ending balance | 173 | ||
Weighted Average Grant Date Fair Value per Share Granted | $ 23.18 | ||
Weighted Average Grant Date Fair Value per Share ending balance | $ 23.18 |
Share-Based Compensation - Ce81
Share-Based Compensation - Certain Information Regarding Company's Share-Based Compensation (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Compensation expense, Total | $ 10,288 | $ 17,386 | $ 12,342 |
Deferred tax benefits, Total | 3,933 | 5,348 | 343 |
Realized tax benefits, Total | 5,050 | 5,369 | 8,288 |
Excess tax benefits (shortfall) | (1,154) | 5,310 | 7,006 |
Intrinsic value of options exercised | 1,894 | 14,734 | 18,979 |
Cash received for strike price and tax withholdings | $ 119 | $ 519 | $ 73 |
Shares acquired through cashless exercise | 325 | 611 | 1,787 |
Value of shares acquired through cashless exercise | $ 6,238 | $ 15,445 | $ 26,947 |
Stock Option [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Compensation expense, Stock options | 3,641 | 1,389 | 675 |
Deferred tax benefits, Total | 1,392 | 532 | 260 |
Realized tax benefits, Total | 724 | 5,369 | 7,321 |
Excess tax benefits (shortfall) | $ 642 | $ 5,310 | $ 6,472 |
Weighted average fair value per option or share, Stock option grants | $ 6.01 | $ 6.34 | $ 3.39 |
Restricted Stock [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Compensation expense | $ 3,433 | $ 15,997 | $ 11,667 |
Deferred tax benefits, Total | 1,312 | $ 4,816 | 83 |
Realized tax benefits, Total | 4,326 | 967 | |
Excess tax benefits (shortfall) | (1,796) | $ 534 | |
Weighted average fair value per option or share, Restricted stock grants/Performance share unit grants | $ 26.04 | $ 12.88 | |
Fair value of restricted stock vested | 11,319 | $ 17,505 | $ 28,350 |
Performance Share Units [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Compensation expense | 3,214 | ||
Deferred tax benefits, Total | $ 1,229 | ||
Weighted average fair value per option or share, Restricted stock grants/Performance share unit grants | $ 23.18 |
Share-Based Compensation - Unre
Share-Based Compensation - Unrecognized Compensation Expense and Weighted Average Period (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Stock Option [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Unrecognized expense | $ 7,854 |
Weighted average remaining years | 1 year 11 months 1 day |
Performance Share Units [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Unrecognized expense | $ 786 |
Weighted average remaining years | 1 year 6 months 22 days |
Share-Based Compensation - Summ
Share-Based Compensation - Summary of Assumptions Utilized in the Black-Scholes Model for Stock Options Granted (Detail) - Stock Option [Member] - $ / shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Weighted-average risk-free interest rate | 1.40% | 0.54% | 0.48% |
Expected term of option in years | 5 years 5 months 9 days | 3 years 4 months 17 days | 2 years 11 months 23 days |
Weighted-average volatility | 45.20% | 44.30% | 40.30% |
Dividend yield | 3.40% | 3.40% | 3.90% |
Weighted average grant date fair value per share | $ 6.01 | $ 6.34 | $ 3.39 |
Employee Benefit Plan - Additio
Employee Benefit Plan - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Compensation And Retirement Disclosure [Abstract] | |||
Company contribution percentage | 100.00% | ||
Participant's contribution percentage | 5.00% | ||
Additional profit-sharing contribution | $ 0 | $ 0 | $ 0 |
Aggregate contributions | $ 1,200,000 | $ 1,000,000 | $ 800,000 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - SPC Global RE Advisors LLC [Member] - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Related Party Transaction [Line Items] | ||
Consulting agreement terminated date | Sep. 18, 2015 | |
Payments due to related party | $ 0 |
Related Party Transactions - Pa
Related Party Transactions - Payments Made by Company to Related Parties (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
SPC Global RE Advisors LLC [Member] | ||
Related Party Transaction [Line Items] | ||
Payments made by the company to related party | $ 90 | $ 120 |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Provision (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Current: | |||
Federal | $ 50,645 | $ 61,830 | $ 47,245 |
State and local | 8,105 | 7,402 | 7,877 |
Total current expense (benefit) | 58,750 | 69,232 | 55,122 |
Deferred: | |||
Federal | 4,106 | (775) | (152) |
State and local | 617 | 82 | (354) |
Total deferred expense (benefit) | 4,723 | (693) | (506) |
Income tax expense | $ 63,473 | $ 68,539 | $ 54,616 |
Income Taxes - Reconciles Statu
Income Taxes - Reconciles Statutory Federal Income Tax Rate to Company' s Effective Tax Rate (Detail) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
Expected provision at federal statutory tax rate | 35.00% | 35.00% | 35.00% |
Increases (decreases) resulting from: | |||
Disallowed meals & entertainment | 0.30% | 0.20% | 0.40% |
Disallowed compensation | 0.40% | 1.10% | 4.20% |
State income tax, net of federal tax benefit | 3.20% | 3.40% | 3.60% |
Effect of change in rate | 0.10% | ||
Other, net | 0.10% | (0.60%) | (0.40%) |
Total income tax expense (benefit) | 39.00% | 39.20% | 42.80% |
Income Taxes - Components of De
Income Taxes - Components of Deferred Taxes (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Deferred income tax assets: | ||
Unearned premiums | $ 26,861 | $ 25,082 |
Advanced premiums | 1,314 | 1,859 |
Unpaid losses and LAE | 374 | 1,105 |
Regulatory assessments | 31 | |
Share-based compensation | 3,256 | 5,535 |
Accrued wages | 297 | 164 |
Allowance for uncollectible receivables | 284 | 214 |
Additional tax basis of securities | 51 | 51 |
Capital loss carryforwards | 759 | 850 |
Other comprehensive income | 3,982 | 2,521 |
Other | 131 | |
Total deferred income tax assets | 37,309 | 37,412 |
Valuation allowance | (133) | |
Deferred income tax assets, net of valuation allowance | 37,176 | 37,412 |
Deferred income tax liabilities: | ||
Deferred policy acquisition costs, net | (24,812) | (22,969) |
Prepaid expenses | (504) | (456) |
Fixed assets | (880) | |
Other | (306) | (75) |
Total deferred income tax liabilities | (26,502) | (23,500) |
Net deferred income tax asset | $ 10,674 | $ 13,912 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Taxes [Line Items] | |||
Capital loss carryforwards | $ 759,000 | $ 850,000 | |
Valuation allowance | 133,000 | ||
Uncertain tax liabilities | 0 | $ 0 | $ 0 |
Income tax refund | 5,633,000 | ||
State | |||
Income Taxes [Line Items] | |||
Valuation allowance | 133,000 | ||
State | 2012 | |||
Income Taxes [Line Items] | |||
Capital loss carryforwards | 8,300,000 | ||
State | 2013 | |||
Income Taxes [Line Items] | |||
Capital loss carryforwards | $ 15,300,000 |
Earnings Per Share - Reconciles
Earnings Per Share - Reconciles Numerator and Denominator of Basic and Diluted Earnings Per Share Computations (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Numerator for EPS: | |||||||||||
Net income | $ 13,655 | $ 26,882 | $ 33,647 | $ 25,226 | $ 29,152 | $ 30,298 | $ 24,704 | $ 22,330 | $ 99,410 | $ 106,484 | $ 72,988 |
Less: Preferred stock dividends | (10) | (10) | (13) | ||||||||
Income available to common stockholders | $ 99,400 | $ 106,474 | $ 72,975 | ||||||||
Denominator for EPS: | |||||||||||
Weighted average common shares outstanding | 34,919 | 34,799 | 33,569 | ||||||||
Plus: Assumed conversion of share-based compensation | 706 | 1,056 | 1,535 | ||||||||
Assumed conversion of preferred stock | 25 | 29 | 46 | ||||||||
Weighted average diluted common shares outstanding | 35,650 | 35,884 | 35,150 | ||||||||
Basic earnings per common share | $ 0.39 | $ 0.77 | $ 0.96 | $ 0.73 | $ 0.84 | $ 0.87 | $ 0.71 | $ 0.65 | $ 2.85 | $ 3.06 | $ 2.17 |
Diluted earnings per common share | $ 0.38 | $ 0.75 | $ 0.94 | $ 0.71 | $ 0.82 | $ 0.84 | $ 0.69 | $ 0.62 | $ 2.79 | $ 2.97 | $ 2.08 |
Weighted average number of antidilutive shares | 1,583 | 311 | 64 |
Other Comprehensive Income (L92
Other Comprehensive Income (Loss) - Components of Other Comprehensive Income (loss) Pre-Tax and After-Tax (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Equity [Abstract] | ||||
Net unrealized gains (losses) on investments available for sale arising during the period, Pre-tax | $ (1,594) | $ (2,480) | $ 3,252 | |
Less: Amounts reclassified from accumulated other comprehensive income (loss), Pre-tax | (2,294) | (1,060) | (5,627) | |
Net current period other comprehensive income (loss), Pre-tax | (3,888) | (3,540) | (2,375) | |
Net unrealized gains (losses) on investments available for sale arising during the period, Tax | (609) | (963) | 1,255 | |
Less: Amounts reclassified from accumulated other comprehensive income (loss), Tax | (877) | (406) | (2,171) | |
Net current period other comprehensive income (loss), Tax | (1,486) | (1,369) | (916) | |
Net unrealized gains (losses) on investments available for sale arising during the period, After-tax | (985) | (1,517) | 1,997 | |
Less: Amounts reclassified from accumulated other comprehensive income (loss), After-tax | (1,417) | (654) | (3,456) | |
Net current period other comprehensive income (loss), After-tax | [1] | $ (2,402) | $ (2,171) | $ (1,459) |
[1] | Represents change in fair value of available for sale investments, net of tax benefit of $1,486 thousand, $1,369 thousand and $916 thousand in years ended December 31, 2016, 2015 and 2014, respectively. |
Other Comprehensive Income (L93
Other Comprehensive Income (Loss) - Reclassifications Out of Accumulated Other Comprehensive Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Net realized gains (losses) on investments | $ 2,294 | $ 1,060 | $ 5,627 | ||||||||
Income taxes, current | (63,473) | (68,539) | (54,616) | ||||||||
NET INCOME | $ 13,655 | $ 26,882 | $ 33,647 | $ 25,226 | $ 29,152 | $ 30,298 | $ 24,704 | $ 22,330 | 99,410 | 106,484 | 72,988 |
Accumulated Net Unrealized Investment Gain (Loss) [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Net realized gains (losses) on investments | 2,294 | 1,060 | 5,627 | ||||||||
Income taxes, current | (877) | (406) | (2,171) | ||||||||
NET INCOME | $ 1,417 | $ 654 | $ 3,456 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2014 | |
Commitments And Contingencies Disclosure [Abstract] | ||
Minimum annual spend towards covered loss | $ 4,100 | $ 5,000 |
Amount incurred towards minimum annual spending | $ 900 | |
Agreement, terms period | June 1, 2016 through May 31, 2025 | |
Agreement, terms expiration date | May 31, 2017 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets Measured for at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities | $ 584,361 | $ 416,083 |
Equity securities | 50,803 | 42,214 |
Short-term investments | 5,002 | 25,021 |
Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 5,002 | 25,021 |
Total assets accounted for at fair value | 640,166 | 483,318 |
Fair Value, Measurements, Recurring | U.S. Government Obligations and Agencies [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities | 74,267 | 125,342 |
Fair Value, Measurements, Recurring | Corporate Bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities | 191,430 | 125,517 |
Fair Value, Measurements, Recurring | Mortgage-Backed and Asset-Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities | 214,776 | 150,160 |
Fair Value, Measurements, Recurring | Municipal Bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities | 91,197 | |
Fair Value, Measurements, Recurring | Redeemable Preferred Stock [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities | 12,691 | 10,065 |
Fair Value, Measurements, Recurring | Common Stock [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 93 | 10,762 |
Fair Value, Measurements, Recurring | Mutual Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 50,710 | 31,452 |
Fair Value, Measurements, Recurring | Other [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities | 4,999 | |
Level 1 [Member] | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets accounted for at fair value | 50,803 | 42,214 |
Level 1 [Member] | Fair Value, Measurements, Recurring | Common Stock [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 93 | 10,762 |
Level 1 [Member] | Fair Value, Measurements, Recurring | Mutual Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 50,710 | 31,452 |
Level 2 [Member] | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 5,002 | 25,021 |
Total assets accounted for at fair value | 589,363 | 441,104 |
Level 2 [Member] | Fair Value, Measurements, Recurring | U.S. Government Obligations and Agencies [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities | 74,267 | 125,342 |
Level 2 [Member] | Fair Value, Measurements, Recurring | Corporate Bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities | 191,430 | 125,517 |
Level 2 [Member] | Fair Value, Measurements, Recurring | Mortgage-Backed and Asset-Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities | 214,776 | 150,160 |
Level 2 [Member] | Fair Value, Measurements, Recurring | Municipal Bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities | 91,197 | |
Level 2 [Member] | Fair Value, Measurements, Recurring | Redeemable Preferred Stock [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities | $ 12,691 | 10,065 |
Level 2 [Member] | Fair Value, Measurements, Recurring | Other [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities | $ 4,999 |
Fair Value Measurements - Summa
Fair Value Measurements - Summarizes Carrying Value and Estimated Fair Values of Financial Instruments not Carried at Fair Value (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Surplus Note [Member] | ||
Fair Value Inputs Liabilities Quantitative Information [Line Items] | ||
Carrying Value | $ 14,338 | $ 15,809 |
Surplus Note [Member] | Level 3 [Member] | ||
Fair Value Inputs Liabilities Quantitative Information [Line Items] | ||
Estimated Fair Value | 13,282 | 14,166 |
Term Loan [Member] | ||
Fair Value Inputs Liabilities Quantitative Information [Line Items] | ||
Carrying Value | 6,851 | |
Term Loan [Member] | Level 3 [Member] | ||
Fair Value Inputs Liabilities Quantitative Information [Line Items] | ||
Estimated Fair Value | 6,851 | |
Promissory Note [Member] | ||
Fair Value Inputs Liabilities Quantitative Information [Line Items] | ||
Carrying Value | 690 | 1,390 |
Promissory Note [Member] | Level 3 [Member] | ||
Fair Value Inputs Liabilities Quantitative Information [Line Items] | ||
Estimated Fair Value | $ 690 | $ 1,390 |
Liability for Unpaid Losses a97
Liability for Unpaid Losses and Loss Adjustment Expenses - Summary of Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Detail) $ in Thousands | Dec. 31, 2016USD ($)Claim | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2012USD ($) |
Claims Development [Line Items] | |||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 753,716 | ||||
Accident Year 2012 [Member] | |||||
Claims Development [Line Items] | |||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 95,727 | $ 99,517 | $ 101,888 | $ 102,118 | $ 109,073 |
Total of Incurred-but-Not-Reported Liabilities Plus Expected Development (Redundancy) on Reported Claims | $ (3,399) | ||||
Cumulative Number of Reported Claims | Claim | 24,272 | ||||
Accident Year 2013 [Member] | |||||
Claims Development [Line Items] | |||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 88,493 | 96,012 | 96,993 | $ 100,111 | |
Total of Incurred-but-Not-Reported Liabilities Plus Expected Development (Redundancy) on Reported Claims | $ (7,650) | ||||
Cumulative Number of Reported Claims | Claim | 20,415 | ||||
Accident Year 2014 [Member] | |||||
Claims Development [Line Items] | |||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 112,251 | 118,289 | $ 111,739 | ||
Total of Incurred-but-Not-Reported Liabilities Plus Expected Development (Redundancy) on Reported Claims | $ (9,947) | ||||
Cumulative Number of Reported Claims | Claim | 22,347 | ||||
Accident Year 2015 [Member] | |||||
Claims Development [Line Items] | |||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 187,431 | $ 170,381 | |||
Total of Incurred-but-Not-Reported Liabilities Plus Expected Development (Redundancy) on Reported Claims | $ (10,114) | ||||
Cumulative Number of Reported Claims | Claim | 26,502 | ||||
Accident Year 2016 [Member] | |||||
Claims Development [Line Items] | |||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 269,814 | ||||
Total of Incurred-but-Not-Reported Liabilities Plus Expected Development (Redundancy) on Reported Claims | $ 13,321 | ||||
Cumulative Number of Reported Claims | Claim | 35,690 |
Liability for Unpaid Losses a98
Liability for Unpaid Losses and Loss Adjustment Expenses - Summary of Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Claims Development [Line Items] | |||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 708,970 | ||||
All outstanding liabilities before 2012, net of reinsurance | 381 | ||||
Liabilities for claims and claim adjustment expenses, net of reinsurance | 45,127 | ||||
Accident Year 2012 [Member] | |||||
Claims Development [Line Items] | |||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 98,510 | $ 97,962 | $ 94,817 | $ 89,039 | $ 54,155 |
Accident Year 2013 [Member] | |||||
Claims Development [Line Items] | |||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 95,059 | 93,489 | 88,843 | $ 61,117 | |
Accident Year 2014 [Member] | |||||
Claims Development [Line Items] | |||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 119,798 | 112,059 | $ 69,703 | ||
Accident Year 2015 [Member] | |||||
Claims Development [Line Items] | |||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 191,481 | $ 115,328 | |||
Accident Year 2016 [Member] | |||||
Claims Development [Line Items] | |||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 204,122 |
Liability for Unpaid Losses a99
Liability for Unpaid Losses and Loss Adjustment Expenses - Reconciliation of Net Incurred and Paid Claims Development Tables to Liability for Unpaid Losses and LAE (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Insurance [Abstract] | ||||
Liabilities for unpaid claims and claim adjustment expenses, net of reinsurance | $ 45,127 | |||
Reinsurance recoverable on unpaid claims | 106 | $ 13,540 | $ 47,350 | $ 68,584 |
Unallocated claims adjustment expenses and other | 13,261 | |||
Total gross liability for unpaid claims and claim adjustment expense | $ 58,494 | $ 98,840 | $ 134,353 | $ 159,222 |
Liability for Unpaid Losses 100
Liability for Unpaid Losses and Loss Adjustment Expenses - Supplementary Information About Average Historical Claims Duration (Detail) | Dec. 31, 2016 |
Insurance [Abstract] | |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year one | 64.00% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year two | 14.60% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year three | 8.70% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year four | 5.60% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year five | 3.50% |
Liability for Unpaid Losses 101
Liability for Unpaid Losses and Loss Adjustment Expenses - Change in Liability for Unpaid Losses and LAE (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Insurance [Abstract] | |||
Balance at beginning of year | $ 98,840 | $ 134,353 | $ 159,222 |
Less: Reinsurance recoverable | (13,540) | (47,350) | (68,584) |
Net balance at beginning of period | 85,300 | 87,003 | 90,638 |
Incurred (recovered) related to current year | 305,919 | 188,040 | 124,011 |
Incurred (recovered) related to prior years | (4,690) | (301) | (736) |
Total incurred | 301,229 | 187,739 | 123,275 |
Paid related to Current year | 229,761 | 123,952 | 73,981 |
Paid related to Prior years | 98,380 | 65,490 | 52,929 |
Total paid | 328,141 | 189,442 | 126,910 |
Net balance at end of period | 58,388 | 85,300 | 87,003 |
Plus: Reinsurance recoverable | 106 | 13,540 | 47,350 |
Balance at end of year | $ 58,494 | $ 98,840 | $ 134,353 |
Liability for Unpaid Losses 102
Liability for Unpaid Losses and Loss Adjustment Expenses - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Insurance [Abstract] | |||
Homeowner's property maximum settlement time | 1 year | ||
Initial case reserve for claims | $ 2,500 | ||
LAE case reserves | 0 | ||
Change in reserve for claims due to re-estimates | $ 4,700,000 | $ 300,000 | $ 700,000 |
Quarterly Results for 2016 a103
Quarterly Results for 2016 and 2015 - Summary of Quarterly Results for the Periods Presented (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Premiums earned, net | $ 163,973 | $ 159,534 | $ 156,461 | $ 152,448 | $ 150,598 | $ 146,153 | $ 112,888 | $ 94,360 | $ 632,416 | $ 503,999 | $ 326,877 |
Investment income | 3,489 | 2,304 | 2,142 | 1,605 | 1,779 | 1,307 | 1,207 | 862 | 9,540 | 5,155 | 2,375 |
Total revenues | 178,605 | 172,436 | 169,802 | 164,446 | 162,100 | 157,043 | 123,591 | 103,810 | 685,289 | 546,544 | 369,276 |
Total expenses | 155,878 | 128,273 | 114,908 | 123,347 | 114,220 | 109,143 | 82,371 | 65,787 | 522,406 | 371,521 | 241,672 |
Net income | $ 13,655 | $ 26,882 | $ 33,647 | $ 25,226 | $ 29,152 | $ 30,298 | $ 24,704 | $ 22,330 | $ 99,410 | $ 106,484 | $ 72,988 |
Basic earnings per share | $ 0.39 | $ 0.77 | $ 0.96 | $ 0.73 | $ 0.84 | $ 0.87 | $ 0.71 | $ 0.65 | $ 2.85 | $ 3.06 | $ 2.17 |
Diluted earnings per share | $ 0.38 | $ 0.75 | $ 0.94 | $ 0.71 | $ 0.82 | $ 0.84 | $ 0.69 | $ 0.62 | $ 2.79 | $ 2.97 | $ 2.08 |
Quarterly Results for 2016 a104
Quarterly Results for 2016 and 2015 - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Percentage of decrease in net income | 53.20% | ||||||||||
Decrease in net income during period | $ 15,500 | ||||||||||
Net income | $ 13,655 | $ 26,882 | $ 33,647 | $ 25,226 | $ 29,152 | $ 30,298 | $ 24,704 | $ 22,330 | $ 99,410 | $ 106,484 | $ 72,988 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - $ / shares | Jan. 23, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Subsequent Event [Line Items] | ||||||||||||||||
Dividends per share declared on outstanding common stock | $ 0.27 | $ 0.14 | $ 0.14 | $ 0.14 | $ 0.27 | $ 0.12 | $ 0.12 | $ 0.12 | $ 0.25 | $ 0.10 | $ 0.10 | $ 0.10 | $ 0.69 | $ 0.63 | $ 0.55 | |
Subsequent Event [Member] | ||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||
Dividends per share declared on outstanding common stock | $ 0.14 | |||||||||||||||
Dividend payable date | Mar. 2, 2017 | |||||||||||||||
Dividends payable, shareholders record date | Feb. 17, 2017 |
Schedule II - Condensed Fina106
Schedule II - Condensed Financial Information of Registrant - Condensed Balance Sheets (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
ASSETS | ||||
Cash and cash equivalents | $ 105,730 | $ 197,014 | $ 115,397 | $ 117,275 |
Fixed maturities, at fair value | 584,361 | 416,083 | ||
Equity securities, at fair value | 50,803 | 42,214 | ||
Income taxes recoverable | 3,262 | 5,420 | ||
Deferred income taxes | 10,674 | 13,912 | ||
Other assets | 4,883 | 4,563 | ||
Total assets | 1,060,007 | 993,548 | ||
LIABILITIES: | ||||
Accounts payable | 3,187 | 378 | ||
Long-term debt | 15,028 | 24,050 | ||
Other accrued expenses | 37,665 | 36,424 | ||
Total liabilities | 688,817 | 700,456 | ||
STOCKHOLDERS' EQUITY: | ||||
Cumulative convertible preferred stock, $.01 par value Authorized shares - 1,000 Issued shares - 10 and 10 Outstanding shares - 10 and 10 Minimum liquidation preference - $9.99 and $9.99 per share | ||||
Common stock, $.01 par value Authorized shares - 55,000 Issued shares – 45,324 and 45,525 Outstanding shares – 35,052 and 35,110 | 453 | 455 | ||
Treasury shares, at cost - 10,272 and 10,415 | (86,982) | (80,802) | ||
Additional paid-in capital | 82,263 | 70,789 | ||
Accumulated other comprehensive income (loss), net of taxes | (6,408) | (4,006) | ||
Retained earnings | 381,864 | 306,656 | ||
Total stockholders' equity | 371,190 | 293,092 | 199,916 | 175,609 |
Total liabilities and stockholders' equity | 1,060,007 | 993,548 | ||
Parent Company [Member] | ||||
ASSETS | ||||
Cash and cash equivalents | 3,951 | 2,046 | $ 14,890 | $ 4,878 |
Investments in subsidiaries and undistributed earnings | 362,759 | 291,793 | ||
Fixed maturities, at fair value | 3,003 | 2,980 | ||
Equity securities, at fair value | 625 | 551 | ||
Income taxes recoverable | 3,262 | 5,420 | ||
Deferred income taxes | 10,674 | 13,912 | ||
Other assets | 1,003 | 358 | ||
Total assets | 385,277 | 317,060 | ||
LIABILITIES: | ||||
Accounts payable | 50 | |||
Long-term debt | 6,851 | |||
Other accrued expenses | 14,037 | 17,117 | ||
Total liabilities | 14,087 | 23,968 | ||
STOCKHOLDERS' EQUITY: | ||||
Cumulative convertible preferred stock, $.01 par value Authorized shares - 1,000 Issued shares - 10 and 10 Outstanding shares - 10 and 10 Minimum liquidation preference - $9.99 and $9.99 per share | ||||
Common stock, $.01 par value Authorized shares - 55,000 Issued shares – 45,324 and 45,525 Outstanding shares – 35,052 and 35,110 | 453 | 455 | ||
Treasury shares, at cost - 10,272 and 10,415 | (86,982) | (80,802) | ||
Additional paid-in capital | 82,263 | 70,789 | ||
Accumulated other comprehensive income (loss), net of taxes | (6,408) | (4,006) | ||
Retained earnings | 381,864 | 306,656 | ||
Total stockholders' equity | 371,190 | 293,092 | ||
Total liabilities and stockholders' equity | $ 385,277 | $ 317,060 |
Schedule II - Condensed Fina107
Schedule II - Condensed Financial Information of Registrant - Condensed Balance Sheets (Parenthetical) (Detail) - $ / shares | Dec. 31, 2016 | Dec. 31, 2015 |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | ||
Cumulative convertible preferred stock, par value | $ 0.01 | $ 0.01 |
Cumulative convertible preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Cumulative convertible preferred stock, shares issued | 10,000 | 10,000 |
Cumulative convertible preferred stock, shares outstanding | 10,000 | 10,000 |
Cumulative convertible preferred stock, minimum liquidation preference | $ 9.99 | $ 9.99 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 55,000,000 | 55,000,000 |
Common stock, shares issued | 45,324,000 | 45,525,000 |
Common stock, shares outstanding | 35,052,000 | 35,110,000 |
Treasury stock, shares | 10,272,000 | 10,415,000 |
Schedule II - Condensed Fina108
Schedule II - Condensed Financial Information of Registrant - Condensed Statements of Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
PREMIUMS EARNED AND OTHER REVENUES | |||||||||||
Net investment income (expense) | $ 3,489 | $ 2,304 | $ 2,142 | $ 1,605 | $ 1,779 | $ 1,307 | $ 1,207 | $ 862 | $ 9,540 | $ 5,155 | $ 2,375 |
Net realized gains (losses) on investments | 2,294 | 1,060 | 5,627 | ||||||||
Other revenue | 6,426 | 6,020 | 6,210 | ||||||||
Total premiums earned and other revenues | 178,605 | 172,436 | 169,802 | 164,446 | 162,100 | 157,043 | 123,591 | 103,810 | 685,289 | 546,544 | 369,276 |
OPERATING COSTS AND EXPENSES | |||||||||||
General and administrative expenses | 221,177 | 183,782 | 118,397 | ||||||||
Total operating costs and expenses | 155,878 | 128,273 | 114,908 | 123,347 | 114,220 | 109,143 | 82,371 | 65,787 | 522,406 | 371,521 | 241,672 |
INCOME BEFORE INCOME TAXES | 162,883 | 175,023 | 127,604 | ||||||||
Benefit from income taxes | 63,473 | 68,539 | 54,616 | ||||||||
NET INCOME | $ 13,655 | $ 26,882 | $ 33,647 | $ 25,226 | $ 29,152 | $ 30,298 | $ 24,704 | $ 22,330 | 99,410 | 106,484 | 72,988 |
Parent Company [Member] | |||||||||||
PREMIUMS EARNED AND OTHER REVENUES | |||||||||||
Net investment income (expense) | (35) | 22 | (23) | ||||||||
Net realized gains (losses) on investments | 667 | 66 | 625 | ||||||||
Management fee | 138 | 140 | 121 | ||||||||
Other revenue | 80 | ||||||||||
Total premiums earned and other revenues | 850 | 228 | 723 | ||||||||
OPERATING COSTS AND EXPENSES | |||||||||||
General and administrative expenses | 35,342 | 48,056 | 39,062 | ||||||||
Total operating costs and expenses | 35,342 | 48,056 | 39,062 | ||||||||
INCOME BEFORE INCOME TAXES | (34,492) | (47,828) | (38,339) | ||||||||
Benefit from income taxes | (12,055) | (17,495) | (16,403) | ||||||||
LOSS BEFORE EQUITY IN NET EARNINGS OF SUBSIDIARIES | (22,437) | (30,333) | (21,936) | ||||||||
Equity in net income of subsidiaries | 121,847 | 136,817 | 94,924 | ||||||||
NET INCOME | $ 99,410 | $ 106,484 | $ 72,988 |
Schedule II - Condensed Fina109
Schedule II - Condensed Financial Information of Registrant - Condensed Statements of Cash Flows (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Cash flows from operating activities: | |||||||||||
Net income | $ 13,655 | $ 26,882 | $ 33,647 | $ 25,226 | $ 29,152 | $ 30,298 | $ 24,704 | $ 22,330 | $ 99,410 | $ 106,484 | $ 72,988 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Amortization of share-based compensation | 10,288 | 17,386 | 12,342 | ||||||||
Amortization of original issue discount on debt | 149 | 521 | 840 | ||||||||
Accretion of deferred credit | (149) | (521) | (840) | ||||||||
Net realized (gains) losses on investments | (2,294) | (1,060) | (5,627) | ||||||||
Deferred income taxes | 4,724 | (693) | 1,118 | ||||||||
Excess tax benefits from share-based compensation | 1,154 | (5,310) | (7,006) | ||||||||
Net change in assets and liabilities relating to operating activities: | |||||||||||
Income taxes recoverable | 1,004 | 255 | 2,477 | ||||||||
Income taxes payable | 3,510 | 6,239 | |||||||||
Other liabilities and accrued expenses | (505) | 625 | 2,774 | ||||||||
Net cash provided by (used in) operating activities | 121,396 | 219,271 | 123,346 | ||||||||
Cash flows from investing activities: | |||||||||||
Purchases of equity securities, available for sale | (66,688) | (65,038) | (116,541) | ||||||||
Purchase of fixed maturities, available for sale | (320,131) | (178,198) | (106,885) | ||||||||
Proceeds from sales of equity securities, available for sale | 60,558 | 41,456 | 163,981 | ||||||||
Proceeds from sales of fixed maturities, available for sale | 86,018 | 38,379 | 17,153 | ||||||||
Net cash provided by (used in) investing activities | (174,311) | (83,052) | (77,188) | ||||||||
Cash flows from financing activities: | |||||||||||
Repayment of debt | (2,136) | (8,470) | (7,471) | ||||||||
Preferred stock dividend | (10) | (10) | (13) | ||||||||
Common stock dividend | (24,192) | (22,287) | (19,240) | ||||||||
Issuance of common stock | 119 | 511 | 73 | ||||||||
Purchase of treasury stock | (8,510) | (18,649) | (29,736) | ||||||||
Sale of treasury stock | 2,965 | ||||||||||
Purchase of preferred stock | (256) | ||||||||||
Proceeds received from issuance of contingently redeemable common stock | 19,000 | ||||||||||
Payments related to tax withholding for share-based compensation | (5,451) | (12,141) | (17,655) | ||||||||
Excess tax benefits (shortfall) from share-based compensation | (1,154) | 5,310 | 7,006 | ||||||||
Net cash provided by (used in) financing activities | (38,369) | (54,602) | (48,036) | ||||||||
Net increase (decrease) in cash and cash equivalents | (91,284) | 81,617 | (1,878) | ||||||||
Cash and cash equivalents at beginning of period | 197,014 | 115,397 | 197,014 | 115,397 | 117,275 | ||||||
Cash and cash equivalents at end of period | 105,730 | 197,014 | 105,730 | 197,014 | 115,397 | ||||||
Parent Company [Member] | |||||||||||
Cash flows from operating activities: | |||||||||||
Net income | 99,410 | 106,484 | 72,988 | ||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Equity in net income of subsidiaries | (121,847) | (136,817) | (94,924) | ||||||||
Distribution of income from subsidiaries | 46,914 | 58,224 | 55,805 | ||||||||
Depreciation | 2 | 4 | 2 | ||||||||
Amortization of share-based compensation | 10,288 | 17,386 | 12,342 | ||||||||
Amortization of original issue discount on debt | 149 | 521 | 840 | ||||||||
Accretion of deferred credit | (149) | (521) | (840) | ||||||||
Net realized (gains) losses on investments | (667) | (66) | (625) | ||||||||
Deferred income taxes | 4,724 | (693) | 1,118 | ||||||||
Excess tax benefits from share-based compensation | 1,154 | (5,310) | (7,006) | ||||||||
Net change in assets and liabilities relating to operating activities: | |||||||||||
Income taxes recoverable | 1,004 | 255 | 2,477 | ||||||||
Income taxes payable | 3,510 | 6,239 | |||||||||
Other operating assets and liabilities | (596) | (1,338) | 5,752 | ||||||||
Other liabilities and accrued expenses | (2,896) | ||||||||||
Net cash provided by (used in) operating activities | 37,490 | 41,639 | 54,168 | ||||||||
Cash flows from investing activities: | |||||||||||
Capital contributions to subsidiaries | (5,585) | ||||||||||
Purchases of equity securities, available for sale | (2,037) | (1,442) | (15,836) | ||||||||
Purchase of fixed maturities, available for sale | (3,000) | (3,000) | |||||||||
Proceeds from sales of equity securities, available for sale | 2,456 | 1,481 | 26,060 | ||||||||
Proceeds from sales of fixed maturities, available for sale | 3,229 | 770 | |||||||||
Net cash provided by (used in) investing activities | 648 | 39 | 2,409 | ||||||||
Cash flows from financing activities: | |||||||||||
Repayment of debt | (7,000) | (6,000) | |||||||||
Preferred stock dividend | (10) | (10) | (13) | ||||||||
Common stock dividend | (24,192) | (22,287) | (19,240) | ||||||||
Issuance of common stock | 119 | 511 | 73 | ||||||||
Purchase of treasury stock | (8,510) | (18,649) | (29,736) | ||||||||
Sale of treasury stock | 2,965 | ||||||||||
Purchase of preferred stock | (256) | ||||||||||
Proceeds received from issuance of contingently redeemable common stock | 19,000 | ||||||||||
Payments related to tax withholding for share-based compensation | (5,451) | (12,141) | (17,655) | ||||||||
Excess tax benefits (shortfall) from share-based compensation | (1,154) | 5,310 | 7,006 | ||||||||
Net cash provided by (used in) financing activities | (36,233) | (54,522) | (46,565) | ||||||||
Net increase (decrease) in cash and cash equivalents | 1,905 | (12,844) | 10,012 | ||||||||
Cash and cash equivalents at beginning of period | $ 2,046 | $ 14,890 | 2,046 | 14,890 | 4,878 | ||||||
Cash and cash equivalents at end of period | $ 3,951 | $ 2,046 | $ 3,951 | $ 2,046 | $ 14,890 |
Schedule II - Condensed Fina110
Schedule II - Condensed Financial Information of Registrant - Subsequent Events - Additional Information (Detail) - $ / shares | Jan. 23, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Subsequent Event [Line Items] | ||||||||||||||||
Dividends per share declared on outstanding common stock | $ 0.27 | $ 0.14 | $ 0.14 | $ 0.14 | $ 0.27 | $ 0.12 | $ 0.12 | $ 0.12 | $ 0.25 | $ 0.10 | $ 0.10 | $ 0.10 | $ 0.69 | $ 0.63 | $ 0.55 | |
Subsequent Event [Member] | ||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||
Dividends per share declared on outstanding common stock | $ 0.14 | |||||||||||||||
Dividend payable date | Mar. 2, 2017 | |||||||||||||||
Dividends payable, shareholders record date | Feb. 17, 2017 |
Schedule V - Valuation Allow111
Schedule V - Valuation Allowances and Qualifying Accounts (Detail) - Allowance for Doubtful Accounts [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Beginning Balance | $ 344 | $ 357 | $ 446 |
Charges to Earnings | 397 | 395 | 431 |
Deductions | 214 | 408 | 520 |
Ending Balance | $ 527 | $ 344 | $ 357 |
Schedule VI - Supplemental I112
Schedule VI - Supplemental Information Concerning Consolidated Property and Casualty Insurance Operations (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Supplemental Information For Property Casualty Insurance Underwriters [Abstract] | ||||||||||||
Reserves for Unpaid Losses and LAE | $ 58,494 | $ 98,840 | $ 58,494 | $ 98,840 | $ 134,353 | $ 159,222 | ||||||
Incurred Loss and LAE Current Year | 305,919 | 188,040 | 124,011 | |||||||||
Incurred Loss and LAE Prior Years | (4,690) | (301) | (736) | |||||||||
Paid Losses and LAE | 328,141 | 189,442 | 126,910 | |||||||||
Net Investment Income | 3,489 | $ 2,304 | $ 2,142 | $ 1,605 | 1,779 | $ 1,307 | $ 1,207 | $ 862 | 9,540 | 5,155 | 2,375 | |
Deferred Policy Acquisition Cost ("DPAC") | 64,912 | 60,019 | 64,912 | 60,019 | 25,660 | $ 15,899 | ||||||
Amortization of DPAC | (125,350) | (87,871) | (33,501) | |||||||||
Net Premiums Written | 656,094 | 626,448 | 389,847 | |||||||||
Net Premiums Earned | 163,973 | $ 159,534 | $ 156,461 | $ 152,448 | 150,598 | $ 146,153 | $ 112,888 | $ 94,360 | 632,416 | 503,999 | 326,877 | |
Unearned premiums | $ 475,756 | $ 442,366 | $ 475,756 | $ 442,366 | $ 383,488 |