Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2017 | Nov. 03, 2017 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | UVE | |
Entity Registrant Name | UNIVERSAL INSURANCE HOLDINGS, INC. | |
Entity Central Index Key | 891,166 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 34,443,288 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
ASSETS | ||
Fixed maturities, at fair value | $ 609,179 | $ 584,361 |
Equity securities, at fair value | 26,075 | 50,803 |
Short-term investments, at fair value | 5,002 | |
Investment real estate, net | 16,324 | 11,435 |
Total invested assets | 651,578 | 651,601 |
Cash and cash equivalents | 366,176 | 105,730 |
Restricted cash and cash equivalents | 2,635 | 2,635 |
Prepaid reinsurance premiums | 212,489 | 124,385 |
Reinsurance recoverable | 412,697 | 106 |
Premiums receivable, net | 66,687 | 53,833 |
Property and equipment, net | 32,959 | 32,162 |
Deferred policy acquisition costs | 75,934 | 64,912 |
Income taxes recoverable | 19,174 | 3,262 |
Deferred income tax asset, net | 5,300 | 10,674 |
Other assets | 11,432 | 10,707 |
Total assets | 1,857,061 | 1,060,007 |
LIABILITIES: | ||
Unpaid losses and loss adjustment expenses | 440,443 | 58,494 |
Unearned premiums | 556,299 | 475,756 |
Advance premium | 28,667 | 17,796 |
Accounts payable | 3,999 | 3,187 |
Reinsurance payable, net | 341,356 | 80,891 |
Dividends payable | 4,846 | |
Other liabilities and accrued expenses | 47,659 | 37,665 |
Long-term debt | 13,235 | 15,028 |
Total liabilities | 1,436,504 | 688,817 |
Commitments and Contingencies (Note 12) | ||
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 - 45,473 and 45,324; and Outstanding shares - 34,440 and 35,052 | 455 | 453 |
Treasury shares, at cost - 11,033 and 10,272 | (104,866) | (86,982) |
Additional paid-in capital | 89,429 | 82,263 |
Accumulated other comprehensive income (loss), net of taxes | (2,207) | (6,408) |
Retained earnings | 437,746 | 381,864 |
Total stockholders' equity | 420,557 | 371,190 |
Total liabilities and stockholders' equity | $ 1,857,061 | $ 1,060,007 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (Parenthetical) - $ / shares | Sep. 30, 2017 | Dec. 31, 2016 |
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 | 45,473,000 | 45,324,000 |
Common stock, shares outstanding | 34,440,000 | 35,052,000 |
Treasury stock, shares | 11,033,000 | 10,272,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
PREMIUMS EARNED AND OTHER REVENUES | ||||
Direct premiums written | $ 274,744 | $ 241,888 | $ 816,350 | $ 741,782 |
Change in unearned premium | (19,935) | (7,388) | (80,543) | (59,211) |
Direct premium earned | 254,809 | 234,500 | 735,807 | 682,571 |
Ceded premium earned | (80,292) | (74,966) | (230,722) | (214,128) |
Premiums earned, net | 174,517 | 159,534 | 505,085 | 468,443 |
Net investment income (expense) | 3,085 | 2,304 | 9,012 | 6,051 |
Net realized gains (losses) on investments | 803 | 101 | 2,450 | 1,344 |
Commission revenue | 5,304 | 4,603 | 14,546 | 12,927 |
Policy fees | 4,861 | 4,226 | 14,594 | 13,093 |
Other revenue | 1,673 | 1,668 | 4,917 | 4,827 |
Total premiums earned and other revenues | 190,243 | 172,436 | 550,604 | 506,685 |
OPERATING COSTS AND EXPENSES | ||||
Losses and loss adjustment expenses | 116,375 | 73,548 | 267,129 | 199,749 |
General and administrative expenses | 57,269 | 54,725 | 171,582 | 166,780 |
Total operating costs and expenses | 173,644 | 128,273 | 438,711 | 366,529 |
INCOME BEFORE INCOME TAXES | 16,599 | 44,163 | 111,893 | 140,156 |
Income tax expense | 6,635 | 17,281 | 41,354 | 54,400 |
NET INCOME | $ 9,964 | $ 26,882 | $ 70,539 | $ 85,756 |
Basic earnings per common share | $ 0.29 | $ 0.77 | $ 2.02 | $ 2.46 |
Weighted average common shares outstanding - Basic | 34,686 | 35,042 | 34,927 | 34,878 |
Diluted earnings per common share | $ 0.28 | $ 0.75 | $ 1.96 | $ 2.41 |
Weighted average common shares outstanding - Diluted | 35,615 | 35,723 | 35,917 | 35,594 |
Cash dividend declared per common share | $ 0.14 | $ 0.14 | $ 0.42 | $ 0.42 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net income | $ 9,964 | $ 26,882 | $ 70,539 | $ 85,756 |
Other comprehensive income (loss), net of taxes | 251 | (491) | 4,201 | 5,631 |
Comprehensive income | $ 10,215 | $ 26,391 | $ 74,740 | $ 91,387 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Cash flows from operating activities: | ||
Net cash provided by (used in) operating activities | $ 286,195 | $ 178,637 |
Cash flows from investing activities: | ||
Proceeds from sale of property and equipment | 17 | 31 |
Purchases of property and equipment | (3,655) | (6,041) |
Purchases of equity securities | (47,070) | (46,414) |
Purchases of fixed maturities | (114,593) | (278,961) |
Purchases of investment real estate, net | (5,023) | (4,400) |
Proceeds from sales of equity securities | 75,027 | 46,819 |
Proceeds from sales of fixed maturities | 19,643 | 78,966 |
Maturities of fixed maturities | 75,770 | 38,111 |
Maturities of short-term investments | 5,000 | 25,000 |
Net cash provided by (used in) investing activities | 5,116 | (146,889) |
Cash flows from financing activities: | ||
Preferred stock dividend | (8) | (7) |
Common stock dividend | (9,803) | (9,828) |
Purchase of treasury stock | (17,884) | (8,415) |
Sale of treasury stock | 2,965 | |
Payments related to tax withholding for share-based compensation | (1,367) | (4,905) |
Excess tax benefits (shortfall) from share-based compensation | (1,563) | |
Repayment of debt | (1,803) | (1,768) |
Net cash provided by (used in) financing activities | (30,865) | (23,521) |
Net increase (decrease) in cash and cash equivalents | 260,446 | 8,227 |
Cash and cash equivalents at beginning of period | 105,730 | 197,014 |
Cash and cash equivalents at end of period | $ 366,176 | $ 205,241 |
Nature of Operations and Basis
Nature of Operations and Basis of Presentation | 9 Months Ended |
Sep. 30, 2017 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Nature of Operations and Basis of Presentation | 1. Nature of Operations and Basis of Presentation Nature of Operations 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 fifteen states 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 on 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. Basis of Presentation The Company has prepared the accompanying unaudited Condensed Consolidated Financial Statements (“Financial Statements”) in accordance with the rules and regulations of the United States Securities and Exchange Commission (“SEC”) for interim financial information. Accordingly, the Financial Statements do not include all of the information and footnotes required by United States Generally Accepted Accounting Principles (“GAAP”) for annual financial statements. Therefore, the Financial Statements should be read in conjunction with the audited Consolidated Financial Statements contained in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2016, filed with the SEC on February 24, 2017. The condensed consolidated balance sheet at December 31, 2016, was derived from audited financial statements, but does not include all disclosures required by GAAP. In the opinion of management, all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation have been included in the Financial Statements. The results for interim periods do not necessarily indicate the results that may be expected for any other interim period or for the full year. To conform to the 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. The Financial Statements include the accounts of UVE and its wholly-owned subsidiaries. All material intercompany balances and transactions have been eliminated in consolidation. Management must make estimates and assumptions that affect amounts reported in the Company’s Financial Statements and in disclosures of contingent assets and liabilities. Actual results could differ from those estimates. |
Significant Accounting Policies
Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | 2. Significant Accounting Policies The Company reported Significant Accounting Policies in its Annual Report on Form 10-K for the year ended December 31, 2016. The following are new or revised disclosures or disclosures required on a quarterly basis. Recently Adopted Accounting Pronouncements In March 2016, the Financial Accounting Standards Board (“FASB”) issued guidance which simplifies several aspects of the accounting for share-based payment transactions. The new guidance requires excess income tax benefits (windfalls) and deficiencies (shortfalls) to be recognized in the income statement as income tax benefits or charges when the awards vest or are settled. The former guidance required the recognition of excess tax benefits or deficiencies in stockholders’ equity. In addition, all income tax-related cash flows resulting from share-based payments will be reported as operating activities in the statement of cash flows under the new guidance. The guidance also allows us to repurchase more of an employee's shares for tax withholding purposes without triggering liability accounting; clarifies that all cash payments for tax withholdings made on an employee’s behalf should be presented as a financing activity on the Company’s statement of cash flows; and provides an accounting policy election to account for forfeitures as they occur. The guidance is effective for fiscal years and interim periods beginning after December 15, 2016, with early adoption permitted. The Company adopted this guidance effective January 1, 2017. The adoption of the new standard resulted in the recognition of excess tax benefit of $0.8 million reflected in the Company’s Condensed Consolidated Statements of Income as an income tax benefit for the nine months ended September 30, 2017. Additionally, excess tax benefits on the Company’s Condensed Consolidated Statement of Cash Flows are presented as an operating activity on a prospective basis. The presentation requirement for cash flows related to employee taxes paid for withheld shares did not impact any of the periods presented in the Company’s Condensed Consolidated Statement of Cash Flows since these cash flows have historically been presented as a financing activity. The Company will continue to account for forfeitures as they occur. The standard also modifies the calculation of dilutive earnings per share to no longer use proceeds from tax benefits or deficiencies. |
Investments
Investments | 9 Months Ended |
Sep. 30, 2017 | |
Investments Debt And Equity Securities [Abstract] | |
Investments | 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): September 30, 2017 Cost or Gross Gross Amortized Unrealized Unrealized Cost Gains Losses Fair Value Fixed Maturities: U.S. government obligations and agencies $ 55,519 $ 21 $ (524 ) $ 55,016 Corporate bonds 215,455 883 (507 ) 215,831 Mortgage-backed and asset-backed securities 219,321 110 (1,333 ) 218,098 Municipal bonds 106,926 706 (1,342 ) 106,290 Redeemable preferred stock 13,336 631 (23 ) 13,944 Equity Securities: Common stock 5,992 — (309 ) 5,683 Mutual funds 22,316 143 (2,067 ) 20,392 Total $ 638,865 $ 2,494 $ (6,105 ) $ 635,254 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 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): September 30, 2017 December 31, 2016 % of Total % of Total Comparable Ratings Fair Value Fair Value Fair Value Fair Value AAA $ 130,119 21.4 % $ 131,260 22.3 % AA 268,056 44.0 % 275,480 46.7 % A 122,808 20.2 % 107,418 18.2 % BBB 79,950 13.1 % 67,263 11.4 % BB+ and Below 3,738 0.6 % 3,444 0.6 % No Rating Available 4,508 0.7 % 4,498 0.8 % Total $ 609,179 100.0 % $ 589,363 100.0 % 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): September 30, 2017 December 31, 2016 Cost or Cost or Amortized Amortized Cost Fair Value Cost Fair Value Mortgage-backed Securities: Agency $ 119,469 $ 118,387 $ 110,724 $ 109,022 Non-agency 15,418 15,334 19,408 19,265 Asset-backed Securities: Auto loan receivables 36,989 36,959 37,390 37,429 Credit card receivables 35,869 35,846 38,640 38,568 Other receivables 11,576 11,572 10,517 10,492 Total $ 219,321 $ 218,098 $ 216,679 $ 214,776 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 (dollars in thousands): September 30, 2017 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 $ 47,102 $ (404 ) 4 $ 4,345 $ (120 ) Corporate bonds 100 76,577 (410 ) 11 7,105 (97 ) Mortgage-backed and asset-backed securities 90 146,458 (1,196 ) 8 13,063 (137 ) Municipal bonds 43 46,363 (601 ) 15 24,714 (741 ) Redeemable preferred stock 13 1,518 (19 ) 1 107 (4 ) Equity Securities: Common stock 2 5,683 (309 ) — — — Mutual funds 5 293 (2 ) 2 9,202 (2,065 ) Total 263 $ 323,994 $ (2,941 ) 41 $ 58,536 $ (3,164 ) 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 ) Evaluating Investments for Other Than Temporary Impairment (“OTTI”) At September 30, 2017, the Company held fixed maturity and equity securities 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 and equity securities 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, we believe that our fixed income portfolio is of high quality and that 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 at September 30, 2017 are other than temporary. As of September 30, 2017, the Company held approximately $9.2 million equity securities that were in an unrealized loss position twelve months or longer. The unrealized loss on these equity securities was $2.1 million. Based on our analysis, the Company believes each equity 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 presented 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): September 30, 2017 Cost or Amortized Fair Value Due in one year or less $ 42,233 $ 42,233 Due after one year through five years 229,841 229,898 Due after five years through ten years 47,716 47,879 Due after ten years 58,110 57,127 Mortgage-backed and asset-backed securities 219,321 218,098 Perpetual maturity securities 13,336 13,944 Total $ 610,557 $ 609,179 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): Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Proceeds from sales and maturities (fair value) $ 67,818 $ 23,744 $ 175,440 $ 188,896 Gross realized gains $ 849 $ 107 $ 2,662 $ 1,369 Gross realized losses $ (46 ) $ (6 ) $ (212 ) $ (25 ) The following table presents the components of net investment income, comprised primarily of interest and dividends, for the periods presented (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Fixed maturities $ 2,977 $ 2,456 $ 8,893 $ 6,447 Equity securities 348 223 1,068 666 Short-term investments — 15 22 60 Other (1) 319 166 651 603 Total investment income 3,644 2,860 10,634 7,776 Less: Investment expenses (2) (559 ) (556 ) (1,622 ) (1,725 ) Net investment (expense) income $ 3,085 $ 2,304 $ 9,012 $ 6,051 (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 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): September 30, 2017 December 31, 2016 Income Producing: Investment real estate $ 6,918 $ 6,918 Less: Accumulated depreciation (415 ) (281 ) 6,503 6,637 Non-Income Producing: Properties under development 9,821 4,798 Investment real estate, net $ 16,324 $ 11,435 |
Reinsurance
Reinsurance | 9 Months Ended |
Sep. 30, 2017 | |
Insurance [Abstract] | |
Reinsurance | 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 ability of any of its reinsurers to make payments otherwise due to the Company. Amounts recoverable from reinsurers are estimated in a manner consistent with the terms of the reinsurance contracts. Reinsurance premiums, losses and loss adjustment expenses (“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. 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 September 30, 2017 Due from as of Standard and Poor's Moody's AM Best Rating Investors September 30, December 31, Reinsurer Company Services Service, Inc. 2017 2016 Allianz Risk Transfer A+ AA- n/a $ 186,479 $ — AXIS Specialty Limited A+ A+ A2 16,929 — Everest Reinsurance Company A+ A+ A1 63,104 — Florida Hurricane Catastrophe Fund (1) n/a n/a n/a — 46,364 Renaissance Reinsurance Ltd A+ AA- A1 30,604 — Total (2) $ 297,116 $ 46,364 (1) No rating is available, because the fund is not rated. (2) Amounts represent prepaid reinsurance premiums, reinsurance receivables, net recoverables for paid and unpaid losses, including incurred but not reported reserves, loss adjustment expenses, and offsetting reinsurance payables . The Company’s reinsurance arrangements had the following effect on certain items in the Condensed Consolidated Statements of Income for the periods presented (in thousands): Three Months Ended September 30, 2017 2016 Losses and Loss Losses and Loss Premiums Premiums Adjustment Premiums Premiums Adjustment Written Earned Expenses Written Earned Expenses Direct $ 274,744 $ 254,809 $ 531,268 $ 241,888 $ 234,500 $ 73,487 Ceded (7,303 ) (80,292 ) (414,893 ) (151,432 ) (74,966 ) 61 Net $ 267,441 $ 174,517 $ 116,375 $ 90,456 $ 159,534 $ 73,548 Nine Months Ended September 30, 2017 2016 Losses and Loss Losses and Loss Premiums Premiums Adjustment Premiums Premiums Adjustment Written Earned Expenses Written Earned Expenses Direct $ 816,350 $ 735,807 $ 687,707 $ 741,782 $ 682,571 $ 198,069 Ceded (318,827 ) (230,722 ) (420,578 ) (298,365 ) (214,128 ) 1,680 Net $ 497,523 $ 505,085 $ 267,129 $ 443,417 $ 468,443 $ 199,749 The following prepaid reinsurance premiums and reinsurance recoverable (payable) and receivable are reflected in the Condensed Consolidated Balance Sheets as of the dates presented (in thousands): September 30, December 31, 2017 2016 Prepaid reinsurance premiums $ 212,489 $ 124,385 Reinsurance recoverable on unpaid losses and LAE $ 412,697 $ 106 Reinsurance recoverable (payable) on paid losses — (1,532 ) Reinsurance receivable, net — 186 Reinsurance recoverable (payable) and receivable $ 412,697 $ (1,240 ) |
Insurance Operations
Insurance Operations | 9 Months Ended |
Sep. 30, 2017 | |
Insurance [Abstract] | |
Insurance Operations | 5. Insurance Operations Deferred Policy Acquisition Costs The Company defers certain costs in connection with written policies, called Deferred Policy Acquisition Costs (“DPAC”). 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 for the periods presented (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 DPAC, beginning of period $ 73,591 $ 67,190 $ 64,912 $ 60,019 Capitalized Costs 36,999 33,227 110,653 100,444 Amortization of DPAC (34,656 ) (32,117 ) (99,631 ) (92,163 ) DPAC, end of period $ 75,934 $ 68,300 $ 75,934 $ 68,300 Regulatory Requirements and Restrictions The Insurance Entities are subject to regulations and standards of the Florida Office of Insurance Regulation (“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 an ordinary 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, UPCIC has the capacity to pay ordinary dividends of $57.7 million during 2017. o 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 U.S. GAAP, and an amount representing ten percent of total liabilities for both UPCIC and APPCIC as of the dates presented (in thousands): September 30, December 31, 2017 2016 Ten percent of total liabilities UPCIC $ 82,923 $ 57,560 APPCIC $ 655 $ 464 Statutory capital and surplus UPCIC $ 319,304 $ 313,753 APPCIC $ 16,389 $ 17,280 As of the dates in the table above, both UPCIC and APPCIC exceeded the minimum capitalization requirement. UPCIC also met the capitalization requirements of the other states in which it is licensed as of September 30, 2017. UPCIC and APPCIC are also required to adhere to prescribed premium-to-capital surplus ratios and have met those requirements at such dates. 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): September 30, December 31, 2017 2016 Restricted cash and cash equivalents $ 2,635 $ 2,635 Investments $ 3,922 $ 3,952 |
Liability for Unpaid Losses and
Liability for Unpaid Losses and Loss Adjustment Expenses | 9 Months Ended |
Sep. 30, 2017 | |
Insurance Loss Reserves [Abstract] | |
Liability for Unpaid Losses and Loss Adjustment Expenses | 6. Set forth in the following table is the change in liability for unpaid losses and LAE for the periods presented (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Balance at beginning of period $ 22,645 $ 60,144 $ 58,494 $ 98,840 Less: Reinsurance recoverable (1,393 ) (2,958 ) (106 ) (13,540 ) Net balance at beginning of period 21,252 57,186 58,388 85,300 Incurred (recovered) related to: Current year 116,262 73,721 265,811 199,907 Prior years 113 (173 ) 1,318 (158 ) Total incurred 116,375 73,548 267,129 199,749 Paid related to: Current year 93,969 73,352 179,000 146,012 Prior years 15,912 5,077 118,771 86,732 Total paid 109,881 78,429 297,771 232,744 Net balance at end of period 27,746 52,305 27,746 52,305 Plus: Reinsurance recoverable 412,697 1,904 412,697 1,904 Balance at end of period $ 440,443 $ 54,209 $ 440,443 $ 54,209 |
Long-Term Debt
Long-Term Debt | 9 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | 7. Long-Term Debt Long-term debt consists of the following as of the dates presented (in thousands): September 30, December 31, 2017 2016 Surplus note $ 13,235 $ 14,338 Promissory note — 690 Total $ 13,235 $ 15,028 UPCIC was in compliance with the terms of the surplus note as of September 30, 2017. |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Sep. 30, 2017 | |
Equity [Abstract] | |
Stockholders' Equity | 8. Stockholders’ Equity Common Stock The following table summarizes the activity relating to shares of the Company’s common stock during the nine months ended September 30, 2017 (in thousands): Issued Treasury Outstanding Shares Shares Shares Balance, as of December 31, 2016 45,324 (10,272 ) 35,052 Shares repurchased — (761 ) (761 ) Vesting of performance share units 115 — 115 Stock option exercises 71 — 71 Common stock issued 26 — 26 Shares acquired through cashless exercise (1) — (63 ) (63 ) Shares cancelled (63 ) 63 — Balance, as of September 30, 2017 45,473 (11,033 ) 34,440 (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 performance share units vested. These shares have been cancelled by the Company. 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 Exchange Act Rule 10b-18 up to $20 million of its outstanding shares of common stock through December 31, 2017. During the nine months ended September 30, 2017, UVE repurchased 760,559 shares, at an aggregate price of approximately $17.9 million, pursuant to such repurchase program. In September 2017, the Board of Directors authorized a share repurchase program under which UVE may repurchase in the open market in compliance with Exchange Act Rule 10b-18 up to $20 million of its outstanding shares of common stock through December 31, 2018. There were no shares of common stock repurchased under this program in September 2017. Dividends On January 23, 2017, UVE declared a cash dividend of $0.14 per share on its outstanding common stock paid on March 2, 2017, to the shareholders of record at the close of business on February 17, 2017. On April 12, 2017, UVE declared a cash dividend of $0.14 per share on its outstanding common stock paid on July 3, 2017, to the shareholders of record at the close of business on June 14, 2017. On August 31, 2017, UVE declared a cash dividend of $0.14 per share on its outstanding common stock payable on October 24, 2017, to the shareholders of record at the close of business on September 12, 2017. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 9. Income Taxes During the three months ended September 30, 2017 and 2016, the Company recorded approximately $6.6 million and $17.3 million of income tax expense, respectively. The effective tax rate for the three months ended September 30, 2017 was 40.0% compared to a 39.1% effective tax rate for the same period in the prior year. During the nine months ended September 30, 2017 and 2016, the Company recorded approximately $41.4 million and $54.4 million of income tax expense, respectively. The effective tax rate for the nine months ended September 30, 2017 was 37.0% compared to a 38.8% effective tax rate for the same period in the prior year. During the nine months ended September 30, 2017, the Company’s excess tax benefit of $0.8 million was reflected as an income tax benefit in the condensed consolidated statements of income as a component of the provision for income taxes as a result of the adoption of the accounting guidance for share-based payment transactions. See “Note 2 – Significant Accounting Policies – Recently Adopted Accounting Pronouncements” for more information. In addition, during the nine months ended September 30, 2017, the Company recorded another discrete item as a credit to income tax expense of $1.2 million resulting from anticipated recoveries of income taxes paid for the 2014-2015 tax years. In arriving at these rates, the Company considers a variety of factors including the forecasted full year pre-tax results, the U.S. federal tax rate of 35%, The Company files its tax returns as prescribed by the tax laws of the jurisdictions in which it operates. The Company’s 2014 through 2016 tax years are still subject to examination by the Internal Revenue Service and v arious tax years remain open to examination in certain state jurisdictions. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 10. 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 the exercise 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): Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Numerator for EPS: Net income $ 9,964 $ 26,882 $ 70,539 $ 85,756 Less: Preferred stock dividends (3 ) (3 ) (8 ) (8 ) Income available to common stockholders $ 9,961 $ 26,879 $ 70,531 $ 85,748 Denominator for EPS: Weighted average common shares outstanding 34,686 35,042 34,927 34,878 Plus: Assumed conversion of stock-based compensation (1) 904 656 965 691 Assumed conversion of preferred stock 25 25 25 25 Weighted average diluted common shares outstanding 35,615 35,723 35,917 35,594 Basic earnings per common share $ 0.29 $ 0.77 $ 2.02 $ 2.46 Diluted earnings per common share $ 0.28 $ 0.75 $ 1.96 $ 2.41 (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) | 9 Months Ended |
Sep. 30, 2017 | |
Equity [Abstract] | |
Other Comprehensive Income (Loss) | 11. Other Comprehensive Income (Loss) The following table provides the components of other comprehensive income (loss) on a pre-tax and after-tax basis for the periods presented (in thousands): Three Months Ended September 30, 2017 2016 Pre-tax Tax After-tax Pre-tax Tax After-tax Net unrealized gains (losses) on investments available for sale arising during the period $ 1,207 $ 461 $ 746 $ (694 ) $ (265 ) $ (429 ) Less: Amounts reclassified from accumulated other comprehensive income (loss) (803 ) (308 ) (495 ) (101 ) (39 ) (62 ) Net current period other comprehensive income (loss) $ 404 $ 153 $ 251 $ (795 ) $ (304 ) $ (491 ) Nine Months Ended September 30, 2017 2016 Pre-tax Tax After-tax Pre-tax Tax After-tax Net unrealized gains (losses) on investments available for sale arising during the period $ 9,248 $ 3,535 $ 5,713 $ 10,460 $ 3,998 $ 6,462 Less: Amounts reclassified from accumulated other comprehensive income (loss) (2,450 ) (938 ) (1,512 ) (1,344 ) (513 ) (831 ) Net current period other comprehensive income (loss) $ 6,798 $ 2,597 $ 4,201 $ 9,116 $ 3,485 $ 5,631 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 (Loss) Details about Accumulated Other Three Months Ended September 30, Nine Months Ended September 30, Affected Line Item in the Statement Comprehensive Income (Loss) Components 2017 2016 2017 2016 Where Net Income is Presented Unrealized gains (losses) on investments available for sale $ 803 $ 101 $ 2,450 $ 1,344 Net realized gains (losses) on investments (308 ) (39 ) (938 ) (513 ) Income taxes $ 495 $ 62 $ 1,512 $ 831 Net of tax |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 12. 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 other 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. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 13. 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. Short-term investments: Comprise investment securities subject to re-measurement 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 including those on a recurring basis as of the dates presented (in thousands): Fair Value Measurements September 30, 2017 Level 1 Level 2 Level 3 Total Fixed Maturities: U.S. government obligations and agencies $ — $ 55,016 $ — $ 55,016 Corporate bonds — 215,831 — 215,831 Mortgage-backed and asset-backed securities — 218,098 — 218,098 Municipal bonds — 106,290 — 106,290 Redeemable preferred stock — 13,944 — 13,944 Equity Securities: Common stock 5,683 — — 5,683 Mutual funds 20,392 — — 20,392 Total assets accounted for at fair value $ 26,075 $ 609,179 $ — $ 635,254 Fair Value Measurements 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 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): September 30, 2017 December 31, 2016 (Level 3) (Level 3) Estimated Estimated Carrying Value Carrying Value Liabilities (debt): Surplus note $ 13,235 $ 11,949 $ 14,338 $ 13,282 Promissory note $ — $ — $ 690 $ 690 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 State Board of Administration of Florida (“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 promissory note is not materially different than its carrying value. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | 14. 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 Financial Statements as of September 30, 2017. |
Nature of Operations and Basi21
Nature of Operations and Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The Company has prepared the accompanying unaudited Condensed Consolidated Financial Statements (“Financial Statements”) in accordance with the rules and regulations of the United States Securities and Exchange Commission (“SEC”) for interim financial information. Accordingly, the Financial Statements do not include all of the information and footnotes required by United States Generally Accepted Accounting Principles (“GAAP”) for annual financial statements. Therefore, the Financial Statements should be read in conjunction with the audited Consolidated Financial Statements contained in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2016, filed with the SEC on February 24, 2017. The condensed consolidated balance sheet at December 31, 2016, was derived from audited financial statements, but does not include all disclosures required by GAAP. In the opinion of management, all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation have been included in the Financial Statements. The results for interim periods do not necessarily indicate the results that may be expected for any other interim period or for the full year. To conform to the 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. The Financial Statements include the accounts of UVE and its wholly-owned subsidiaries. All material intercompany balances and transactions have been eliminated in consolidation. Management must make estimates and assumptions that affect amounts reported in the Company’s Financial Statements and in disclosures of contingent assets and liabilities. Actual results could differ from those estimates. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements In March 2016, the Financial Accounting Standards Board (“FASB”) issued guidance which simplifies several aspects of the accounting for share-based payment transactions. The new guidance requires excess income tax benefits (windfalls) and deficiencies (shortfalls) to be recognized in the income statement as income tax benefits or charges when the awards vest or are settled. The former guidance required the recognition of excess tax benefits or deficiencies in stockholders’ equity. In addition, all income tax-related cash flows resulting from share-based payments will be reported as operating activities in the statement of cash flows under the new guidance. The guidance also allows us to repurchase more of an employee's shares for tax withholding purposes without triggering liability accounting; clarifies that all cash payments for tax withholdings made on an employee’s behalf should be presented as a financing activity on the Company’s statement of cash flows; and provides an accounting policy election to account for forfeitures as they occur. The guidance is effective for fiscal years and interim periods beginning after December 15, 2016, with early adoption permitted. The Company adopted this guidance effective January 1, 2017. The adoption of the new standard resulted in the recognition of excess tax benefit of $0.8 million reflected in the Company’s Condensed Consolidated Statements of Income as an income tax benefit for the nine months ended September 30, 2017. Additionally, excess tax benefits on the Company’s Condensed Consolidated Statement of Cash Flows are presented as an operating activity on a prospective basis. The presentation requirement for cash flows related to employee taxes paid for withheld shares did not impact any of the periods presented in the Company’s Condensed Consolidated Statement of Cash Flows since these cash flows have historically been presented as a financing activity. The Company will continue to account for forfeitures as they occur. The standard also modifies the calculation of dilutive earnings per share to no longer use proceeds from tax benefits or deficiencies. |
Investments (Tables)
Investments (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
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): September 30, 2017 Cost or Gross Gross Amortized Unrealized Unrealized Cost Gains Losses Fair Value Fixed Maturities: U.S. government obligations and agencies $ 55,519 $ 21 $ (524 ) $ 55,016 Corporate bonds 215,455 883 (507 ) 215,831 Mortgage-backed and asset-backed securities 219,321 110 (1,333 ) 218,098 Municipal bonds 106,926 706 (1,342 ) 106,290 Redeemable preferred stock 13,336 631 (23 ) 13,944 Equity Securities: Common stock 5,992 — (309 ) 5,683 Mutual funds 22,316 143 (2,067 ) 20,392 Total $ 638,865 $ 2,494 $ (6,105 ) $ 635,254 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 |
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): September 30, 2017 December 31, 2016 % of Total % of Total Comparable Ratings Fair Value Fair Value Fair Value Fair Value AAA $ 130,119 21.4 % $ 131,260 22.3 % AA 268,056 44.0 % 275,480 46.7 % A 122,808 20.2 % 107,418 18.2 % BBB 79,950 13.1 % 67,263 11.4 % BB+ and Below 3,738 0.6 % 3,444 0.6 % No Rating Available 4,508 0.7 % 4,498 0.8 % Total $ 609,179 100.0 % $ 589,363 100.0 % 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): September 30, 2017 December 31, 2016 Cost or Cost or Amortized Amortized Cost Fair Value Cost Fair Value Mortgage-backed Securities: Agency $ 119,469 $ 118,387 $ 110,724 $ 109,022 Non-agency 15,418 15,334 19,408 19,265 Asset-backed Securities: Auto loan receivables 36,989 36,959 37,390 37,429 Credit card receivables 35,869 35,846 38,640 38,568 Other receivables 11,576 11,572 10,517 10,492 Total $ 219,321 $ 218,098 $ 216,679 $ 214,776 |
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 (dollars in thousands): September 30, 2017 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 $ 47,102 $ (404 ) 4 $ 4,345 $ (120 ) Corporate bonds 100 76,577 (410 ) 11 7,105 (97 ) Mortgage-backed and asset-backed securities 90 146,458 (1,196 ) 8 13,063 (137 ) Municipal bonds 43 46,363 (601 ) 15 24,714 (741 ) Redeemable preferred stock 13 1,518 (19 ) 1 107 (4 ) Equity Securities: Common stock 2 5,683 (309 ) — — — Mutual funds 5 293 (2 ) 2 9,202 (2,065 ) Total 263 $ 323,994 $ (2,941 ) 41 $ 58,536 $ (3,164 ) 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 ) |
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): September 30, 2017 Cost or Amortized Fair Value Due in one year or less $ 42,233 $ 42,233 Due after one year through five years 229,841 229,898 Due after five years through ten years 47,716 47,879 Due after ten years 58,110 57,127 Mortgage-backed and asset-backed securities 219,321 218,098 Perpetual maturity securities 13,336 13,944 Total $ 610,557 $ 609,179 |
Summary of Securities Available for Sale | The following table provides certain information related to securities available for sale during the periods presented (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Proceeds from sales and maturities (fair value) $ 67,818 $ 23,744 $ 175,440 $ 188,896 Gross realized gains $ 849 $ 107 $ 2,662 $ 1,369 Gross realized losses $ (46 ) $ (6 ) $ (212 ) $ (25 ) |
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): Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Fixed maturities $ 2,977 $ 2,456 $ 8,893 $ 6,447 Equity securities 348 223 1,068 666 Short-term investments — 15 22 60 Other (1) 319 166 651 603 Total investment income 3,644 2,860 10,634 7,776 Less: Investment expenses (2) (559 ) (556 ) (1,622 ) (1,725 ) Net investment (expense) income $ 3,085 $ 2,304 $ 9,012 $ 6,051 (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 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): September 30, 2017 December 31, 2016 Income Producing: Investment real estate $ 6,918 $ 6,918 Less: Accumulated depreciation (415 ) (281 ) 6,503 6,637 Non-Income Producing: Properties under development 9,821 4,798 Investment real estate, net $ 16,324 $ 11,435 |
Reinsurance (Tables)
Reinsurance (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Insurance [Abstract] | |
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 September 30, 2017 Due from as of Standard and Poor's Moody's AM Best Rating Investors September 30, December 31, Reinsurer Company Services Service, Inc. 2017 2016 Allianz Risk Transfer A+ AA- n/a $ 186,479 $ — AXIS Specialty Limited A+ A+ A2 16,929 — Everest Reinsurance Company A+ A+ A1 63,104 — Florida Hurricane Catastrophe Fund (1) n/a n/a n/a — 46,364 Renaissance Reinsurance Ltd A+ AA- A1 30,604 — Total (2) $ 297,116 $ 46,364 (1) No rating is available, because the fund is not rated. (2) Amounts represent prepaid reinsurance premiums, reinsurance receivables, net recoverables for paid and unpaid losses, including incurred but not reported reserves, loss adjustment expenses, and offsetting reinsurance payables . |
Summary of Effects of Reinsurance Arrangements | The Company’s reinsurance arrangements had the following effect on certain items in the Condensed Consolidated Statements of Income for the periods presented (in thousands): Three Months Ended September 30, 2017 2016 Losses and Loss Losses and Loss Premiums Premiums Adjustment Premiums Premiums Adjustment Written Earned Expenses Written Earned Expenses Direct $ 274,744 $ 254,809 $ 531,268 $ 241,888 $ 234,500 $ 73,487 Ceded (7,303 ) (80,292 ) (414,893 ) (151,432 ) (74,966 ) 61 Net $ 267,441 $ 174,517 $ 116,375 $ 90,456 $ 159,534 $ 73,548 Nine Months Ended September 30, 2017 2016 Losses and Loss Losses and Loss Premiums Premiums Adjustment Premiums Premiums Adjustment Written Earned Expenses Written Earned Expenses Direct $ 816,350 $ 735,807 $ 687,707 $ 741,782 $ 682,571 $ 198,069 Ceded (318,827 ) (230,722 ) (420,578 ) (298,365 ) (214,128 ) 1,680 Net $ 497,523 $ 505,085 $ 267,129 $ 443,417 $ 468,443 $ 199,749 |
Prepaid Reinsurance Premiums and Reinsurance Recoverable (Payable) and Receivable | The following prepaid reinsurance premiums and reinsurance recoverable (payable) and receivable are reflected in the Condensed Consolidated Balance Sheets as of the dates presented (in thousands): September 30, December 31, 2017 2016 Prepaid reinsurance premiums $ 212,489 $ 124,385 Reinsurance recoverable on unpaid losses and LAE $ 412,697 $ 106 Reinsurance recoverable (payable) on paid losses — (1,532 ) Reinsurance receivable, net — 186 Reinsurance recoverable (payable) and receivable $ 412,697 $ (1,240 ) |
Insurance Operations (Tables)
Insurance Operations (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Insurance [Abstract] | |
Beginning and Ending Balances and Changes in DPAC | The following table presents the beginning and ending balances and the changes in DPAC for the periods presented (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 DPAC, beginning of period $ 73,591 $ 67,190 $ 64,912 $ 60,019 Capitalized Costs 36,999 33,227 110,653 100,444 Amortization of DPAC (34,656 ) (32,117 ) (99,631 ) (92,163 ) DPAC, end of period $ 75,934 $ 68,300 $ 75,934 $ 68,300 |
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 U.S. GAAP, and an amount representing ten percent of total liabilities for both UPCIC and APPCIC as of the dates presented (in thousands): September 30, December 31, 2017 2016 Ten percent of total liabilities UPCIC $ 82,923 $ 57,560 APPCIC $ 655 $ 464 Statutory capital and surplus UPCIC $ 319,304 $ 313,753 APPCIC $ 16,389 $ 17,280 |
Assets Held by Insurance Regulators | The following table represents assets held by insurance regulators as of the dates presented (in thousands): September 30, December 31, 2017 2016 Restricted cash and cash equivalents $ 2,635 $ 2,635 Investments $ 3,922 $ 3,952 |
Liability for Unpaid Losses a25
Liability for Unpaid Losses and Loss Adjustment Expenses (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Insurance Loss Reserves [Abstract] | |
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): Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Balance at beginning of period $ 22,645 $ 60,144 $ 58,494 $ 98,840 Less: Reinsurance recoverable (1,393 ) (2,958 ) (106 ) (13,540 ) Net balance at beginning of period 21,252 57,186 58,388 85,300 Incurred (recovered) related to: Current year 116,262 73,721 265,811 199,907 Prior years 113 (173 ) 1,318 (158 ) Total incurred 116,375 73,548 267,129 199,749 Paid related to: Current year 93,969 73,352 179,000 146,012 Prior years 15,912 5,077 118,771 86,732 Total paid 109,881 78,429 297,771 232,744 Net balance at end of period 27,746 52,305 27,746 52,305 Plus: Reinsurance recoverable 412,697 1,904 412,697 1,904 Balance at end of period $ 440,443 $ 54,209 $ 440,443 $ 54,209 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt | Long-term debt consists of the following as of the dates presented (in thousands): September 30, December 31, 2017 2016 Surplus note $ 13,235 $ 14,338 Promissory note — 690 Total $ 13,235 $ 15,028 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Equity [Abstract] | |
Activity Relating to Common Shares | The following table summarizes the activity relating to shares of the Company’s common stock during the nine months ended September 30, 2017 (in thousands): Issued Treasury Outstanding Shares Shares Shares Balance, as of December 31, 2016 45,324 (10,272 ) 35,052 Shares repurchased — (761 ) (761 ) Vesting of performance share units 115 — 115 Stock option exercises 71 — 71 Common stock issued 26 — 26 Shares acquired through cashless exercise (1) — (63 ) (63 ) Shares cancelled (63 ) 63 — Balance, as of September 30, 2017 45,473 (11,033 ) 34,440 (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 performance share units vested. These shares have been cancelled by the Company. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
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): Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Numerator for EPS: Net income $ 9,964 $ 26,882 $ 70,539 $ 85,756 Less: Preferred stock dividends (3 ) (3 ) (8 ) (8 ) Income available to common stockholders $ 9,961 $ 26,879 $ 70,531 $ 85,748 Denominator for EPS: Weighted average common shares outstanding 34,686 35,042 34,927 34,878 Plus: Assumed conversion of stock-based compensation (1) 904 656 965 691 Assumed conversion of preferred stock 25 25 25 25 Weighted average diluted common shares outstanding 35,615 35,723 35,917 35,594 Basic earnings per common share $ 0.29 $ 0.77 $ 2.02 $ 2.46 Diluted earnings per common share $ 0.28 $ 0.75 $ 1.96 $ 2.41 (1) Represents the dilutive effect of unvested Restricted Stock, unvested Performance Share Units and unexercised Stock Options. |
Other Comprehensive Income (L29
Other Comprehensive Income (Loss) (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Equity [Abstract] | |
Components of Other Comprehensive Income (Loss) Pre-Tax and After-Tax | The following table provides the components of other comprehensive income (loss) on a pre-tax and after-tax basis for the periods presented (in thousands): Three Months Ended September 30, 2017 2016 Pre-tax Tax After-tax Pre-tax Tax After-tax Net unrealized gains (losses) on investments available for sale arising during the period $ 1,207 $ 461 $ 746 $ (694 ) $ (265 ) $ (429 ) Less: Amounts reclassified from accumulated other comprehensive income (loss) (803 ) (308 ) (495 ) (101 ) (39 ) (62 ) Net current period other comprehensive income (loss) $ 404 $ 153 $ 251 $ (795 ) $ (304 ) $ (491 ) Nine Months Ended September 30, 2017 2016 Pre-tax Tax After-tax Pre-tax Tax After-tax Net unrealized gains (losses) on investments available for sale arising during the period $ 9,248 $ 3,535 $ 5,713 $ 10,460 $ 3,998 $ 6,462 Less: Amounts reclassified from accumulated other comprehensive income (loss) (2,450 ) (938 ) (1,512 ) (1,344 ) (513 ) (831 ) Net current period other comprehensive income (loss) $ 6,798 $ 2,597 $ 4,201 $ 9,116 $ 3,485 $ 5,631 |
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 (Loss) Details about Accumulated Other Three Months Ended September 30, Nine Months Ended September 30, Affected Line Item in the Statement Comprehensive Income (Loss) Components 2017 2016 2017 2016 Where Net Income is Presented Unrealized gains (losses) on investments available for sale $ 803 $ 101 $ 2,450 $ 1,344 Net realized gains (losses) on investments (308 ) (39 ) (938 ) (513 ) Income taxes $ 495 $ 62 $ 1,512 $ 831 Net of tax |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
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 including those on a recurring basis as of the dates presented (in thousands): Fair Value Measurements September 30, 2017 Level 1 Level 2 Level 3 Total Fixed Maturities: U.S. government obligations and agencies $ — $ 55,016 $ — $ 55,016 Corporate bonds — 215,831 — 215,831 Mortgage-backed and asset-backed securities — 218,098 — 218,098 Municipal bonds — 106,290 — 106,290 Redeemable preferred stock — 13,944 — 13,944 Equity Securities: Common stock 5,683 — — 5,683 Mutual funds 20,392 — — 20,392 Total assets accounted for at fair value $ 26,075 $ 609,179 $ — $ 635,254 Fair Value Measurements 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 |
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): September 30, 2017 December 31, 2016 (Level 3) (Level 3) Estimated Estimated Carrying Value Carrying Value Liabilities (debt): Surplus note $ 13,235 $ 11,949 $ 14,338 $ 13,282 Promissory note $ — $ — $ 690 $ 690 |
Nature of Operations and Basi31
Nature of Operations and Basis of Presentation - Additional Information (Detail) | Sep. 30, 2017State |
Accounting Policies [Abstract] | |
Number of states | 15 |
Significant Accounting Polici32
Significant Accounting Policies - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Schedule Of Significant Accounting Policies [Line Items] | ||||
Income tax expense (benefit) | $ 6,635 | $ 17,281 | $ 41,354 | $ 54,400 |
Adjustments for New Accounting Pronouncement [Member] | ||||
Schedule Of Significant Accounting Policies [Line Items] | ||||
Income tax expense (benefit) | $ (800) |
Investments - Cost or Amortized
Investments - Cost or Amortized Cost and Fair Value of Securities Available for Sale (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Schedule Of Available For Sale Securities [Line Items] | ||
Cost or Amortized Cost | $ 638,865 | $ 650,575 |
Gross Unrealized Gains | 2,494 | 1,201 |
Gross Unrealized Losses | (6,105) | (11,610) |
Fair Value | 635,254 | 640,166 |
Mortgage-Backed and Asset-Backed Securities [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Cost or Amortized Cost | 219,321 | 216,679 |
Fair Value | 218,098 | 214,776 |
Fixed Maturities [Member] | U.S. Government Obligations and Agencies [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Cost or Amortized Cost | 55,519 | 74,937 |
Gross Unrealized Gains | 21 | |
Gross Unrealized Losses | (524) | (670) |
Fair Value | 55,016 | 74,267 |
Fixed Maturities [Member] | Corporate Bonds [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Cost or Amortized Cost | 215,455 | 192,328 |
Gross Unrealized Gains | 883 | 402 |
Gross Unrealized Losses | (507) | (1,300) |
Fair Value | 215,831 | 191,430 |
Fixed Maturities [Member] | Mortgage-Backed and Asset-Backed Securities [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Cost or Amortized Cost | 219,321 | 216,679 |
Gross Unrealized Gains | 110 | 135 |
Gross Unrealized Losses | (1,333) | (2,038) |
Fair Value | 218,098 | 214,776 |
Fixed Maturities [Member] | Municipal Bonds [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Cost or Amortized Cost | 106,926 | 94,794 |
Gross Unrealized Gains | 706 | 130 |
Gross Unrealized Losses | (1,342) | (3,727) |
Fair Value | 106,290 | 91,197 |
Fixed Maturities [Member] | Redeemable Preferred Stock [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Cost or Amortized Cost | 13,336 | 12,723 |
Gross Unrealized Gains | 631 | 125 |
Gross Unrealized Losses | (23) | (157) |
Fair Value | 13,944 | 12,691 |
Equity Securities [Member] | Common Stock [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Cost or Amortized Cost | 5,992 | 214 |
Gross Unrealized Losses | (309) | (121) |
Fair Value | 5,683 | 93 |
Equity Securities [Member] | Mutual Funds [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Cost or Amortized Cost | 22,316 | 53,900 |
Gross Unrealized Gains | 143 | 407 |
Gross Unrealized Losses | (2,067) | (3,597) |
Fair Value | $ 20,392 | 50,710 |
Short-term Investments [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Cost or Amortized Cost | 5,000 | |
Gross Unrealized Gains | 2 | |
Fair Value | $ 5,002 |
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 | Sep. 30, 2017 | Dec. 31, 2016 |
Schedule Of Available For Sale Securities [Line Items] | ||
Fair Value | $ 609,179 | $ 589,363 |
Percentage of Total Fair Value | 100.00% | 100.00% |
Comparable Ratings, AAA Rating [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fair Value | $ 130,119 | $ 131,260 |
Percentage of Total Fair Value | 21.40% | 22.30% |
Comparable Ratings, AA Rating [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fair Value | $ 268,056 | $ 275,480 |
Percentage of Total Fair Value | 44.00% | 46.70% |
Comparable Ratings, A Rating [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fair Value | $ 122,808 | $ 107,418 |
Percentage of Total Fair Value | 20.20% | 18.20% |
Comparable Ratings, BBB Rating [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fair Value | $ 79,950 | $ 67,263 |
Percentage of Total Fair Value | 13.10% | 11.40% |
Comparable Ratings, BB+ and Below Rating [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fair Value | $ 3,738 | $ 3,444 |
Percentage of Total Fair Value | 0.60% | 0.60% |
Comparable Ratings, No Rating Available [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fair Value | $ 4,508 | $ 4,498 |
Percentage of Total Fair Value | 0.70% | 0.80% |
Investments - Schedule of Amort
Investments - Schedule of Amortized Cost and Fair Value on Mortgage-Backed and Asset-Backed Securities (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Schedule Of Available For Sale Securities [Line Items] | ||
Cost or Amortized Cost | $ 638,865 | $ 650,575 |
Fair Value | 635,254 | 640,166 |
Mortgage-backed securities [Member] | Agency [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Cost or Amortized Cost | 119,469 | 110,724 |
Fair Value | 118,387 | 109,022 |
Mortgage-backed securities [Member] | Non Agency [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Cost or Amortized Cost | 15,418 | 19,408 |
Fair Value | 15,334 | 19,265 |
Asset-backed securities [Member] | Auto Loan Receivables [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Cost or Amortized Cost | 36,989 | 37,390 |
Fair Value | 36,959 | 37,429 |
Asset-backed securities [Member] | Credit Card Receivables [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Cost or Amortized Cost | 35,869 | 38,640 |
Fair Value | 35,846 | 38,568 |
Asset-backed securities [Member] | Other Receivables [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Cost or Amortized Cost | 11,576 | 10,517 |
Fair Value | 11,572 | 10,492 |
Mortgage-Backed and Asset-Backed Securities [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Cost or Amortized Cost | 219,321 | 216,679 |
Fair Value | $ 218,098 | $ 214,776 |
Investments - Summarized Fair V
Investments - Summarized Fair Value and Gross Unrealized Losses on Securities Available for Sale (Detail) $ in Thousands | Sep. 30, 2017USD ($)Security | Dec. 31, 2016USD ($)Security |
Schedule Of Available For Sale Securities [Line Items] | ||
Less than 12 months, Number of issues | Security | 263 | 323 |
Less than 12 months, Fair value | $ 323,994 | $ 430,540 |
Less than 12 months, Unrealized losses | $ (2,941) | $ (8,415) |
12 months or longer, Number of issues | Security | 41 | 15 |
12 months or longer, Fair value | $ 58,536 | $ 28,018 |
12 months or longer, Unrealized losses | (3,164) | $ (3,195) |
Equity Securities [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
12 months or longer, Fair value | $ 9,200 | |
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 | 10 | 11 |
Less than 12 months, Fair value | $ 47,102 | $ 70,453 |
Less than 12 months, Unrealized losses | $ (404) | $ (608) |
12 months or longer, Number of issues | Security | 4 | 2 |
12 months or longer, Fair value | $ 4,345 | $ 3,504 |
12 months or longer, Unrealized losses | $ (120) | $ (62) |
Corporate Bonds [Member] | Fixed Maturities [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Less than 12 months, Number of issues | Security | 100 | 116 |
Less than 12 months, Fair value | $ 76,577 | $ 96,379 |
Less than 12 months, Unrealized losses | $ (410) | $ (1,219) |
12 months or longer, Number of issues | Security | 11 | 4 |
12 months or longer, Fair value | $ 7,105 | $ 3,250 |
12 months or longer, Unrealized losses | $ (97) | $ (80) |
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 | 90 | 73 |
Less than 12 months, Fair value | $ 146,458 | $ 149,928 |
Less than 12 months, Unrealized losses | $ (1,196) | $ (1,923) |
12 months or longer, Number of issues | Security | 8 | 5 |
12 months or longer, Fair value | $ 13,063 | $ 9,660 |
12 months or longer, Unrealized losses | $ (137) | $ (115) |
Municipal Bonds [Member] | Fixed Maturities [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Less than 12 months, Number of issues | Security | 43 | 69 |
Less than 12 months, Fair value | $ 46,363 | $ 79,402 |
Less than 12 months, Unrealized losses | $ (601) | $ (3,726) |
12 months or longer, Number of issues | Security | 15 | |
12 months or longer, Fair value | $ 24,714 | |
12 months or longer, Unrealized losses | $ (741) | |
Redeemable Preferred Stock [Member] | Fixed Maturities [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Less than 12 months, Number of issues | Security | 13 | 50 |
Less than 12 months, Fair value | $ 1,518 | $ 6,340 |
Less than 12 months, Unrealized losses | $ (19) | $ (158) |
12 months or longer, Number of issues | Security | 1 | |
12 months or longer, Fair value | $ 107 | |
12 months or longer, Unrealized losses | $ (4) | |
Common Stock [Member] | Equity Securities [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Less than 12 months, Number of issues | Security | 2 | 1 |
Less than 12 months, Fair value | $ 5,683 | $ 18 |
Less than 12 months, Unrealized losses | $ (309) | $ (7) |
12 months or longer, Number of issues | Security | 2 | |
12 months or longer, Fair value | $ 75 | |
12 months or longer, Unrealized losses | $ (115) | |
Mutual Funds [Member] | Equity Securities [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Less than 12 months, Number of issues | Security | 5 | 3 |
Less than 12 months, Fair value | $ 293 | $ 28,020 |
Less than 12 months, Unrealized losses | $ (2) | $ (774) |
12 months or longer, Number of issues | Security | 2 | 2 |
12 months or longer, Fair value | $ 9,202 | $ 11,529 |
12 months or longer, Unrealized losses | $ (2,065) | $ (2,823) |
Investments - Additional Inform
Investments - Additional Information (Detail) - USD ($) | 9 Months Ended | |
Sep. 30, 2017 | Dec. 31, 2016 | |
Schedule Of Available For Sale Securities [Line Items] | ||
Equity securities, Unrealized loss position twelve months or longer | $ 58,536,000 | $ 28,018,000 |
Equity securities, Unrealized loss | 2,100,000 | |
Equity Securities [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Equity securities, Unrealized loss position twelve months or longer | 9,200,000 | |
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 | Sep. 30, 2017 | Dec. 31, 2016 |
Schedule Of Available For Sale Securities [Line Items] | ||
Fixed Maturities Securities Available for Sale, Due in one year or less, Amortized cost | $ 42,233 | |
Fixed Maturities Securities Available for Sale, Due after one year through five years, Amortized cost | 229,841 | |
Fixed Maturities Securities Available for Sale, Due after five years through ten years, Amortized cost | 47,716 | |
Fixed Maturities Securities Available for Sale, Due after ten years, Amortized cost | 58,110 | |
Fixed Maturities Securities Available for Sale, Perpetual Maturity, Amortized Cost | 13,336 | |
Fixed Maturities Securities Available for Sale, Amortized cost, Total | 610,557 | |
Fixed Maturities Securities Available for Sale, Due in one year or less, Fair Value | 42,233 | |
Fixed Maturities Securities Available for Sale, Due after one year through five years, Fair Value | 229,898 | |
Fixed Maturities Securities Available for Sale, Due after five years through ten years, Fair Value | 47,879 | |
Fixed Maturities Securities Available for Sale, Due after ten years, Fair Value | 57,127 | |
Fixed Maturities Securities Available for Sale, Perpetual Maturity, Fair Value | 13,944 | |
Fixed Maturities Securities Available for Sale, Fair Value, Total | 609,179 | $ 589,363 |
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 | 219,321 | |
Fixed Maturities Securities Available for Sale, Mortgage-backed Securities, Fair Value | $ 218,098 |
Investments - Summary of Securi
Investments - Summary of Securities Available for Sale (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Investments Debt And Equity Securities [Abstract] | ||||
Proceeds from sales and maturities (fair value) | $ 67,818 | $ 23,744 | $ 175,440 | $ 188,896 |
Gross realized gains | 849 | 107 | 2,662 | 1,369 |
Gross realized losses | $ (46) | $ (6) | $ (212) | $ (25) |
Investments - Investment Income
Investments - Investment Income (Expense) Comprised Primarily of Interest and Dividends (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Net Investment Income [Line Items] | ||||
Total investment income | $ 3,644 | $ 2,860 | $ 10,634 | $ 7,776 |
Less: Investment expenses | (559) | (556) | (1,622) | (1,725) |
Net investment (expense) income | 3,085 | 2,304 | 9,012 | 6,051 |
Fixed Maturities [Member] | ||||
Net Investment Income [Line Items] | ||||
Investment income | 2,977 | 2,456 | 8,893 | 6,447 |
Equity Securities [Member] | ||||
Net Investment Income [Line Items] | ||||
Investment income | 348 | 223 | 1,068 | 666 |
Short-term Investments [Member] | ||||
Net Investment Income [Line Items] | ||||
Investment income | 15 | 22 | 60 | |
Other [Member] | ||||
Net Investment Income [Line Items] | ||||
Investment income | $ 319 | $ 166 | $ 651 | $ 603 |
Investments - Schedule of Real
Investments - Schedule of Real Estate Investment (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Real Estate [Line Items] | ||
Investment real estate, net | $ 16,324 | $ 11,435 |
Income Producing [Member] | ||
Real Estate [Line Items] | ||
Investment real estate | 6,918 | 6,918 |
Less: Accumulated depreciation | (415) | (281) |
Investment real estate, net | 6,503 | 6,637 |
Non-Income Producing [Member] | ||
Real Estate [Line Items] | ||
Properties under development | $ 9,821 | $ 4,798 |
Reinsurance - Additional Inform
Reinsurance - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2017 | |
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 - 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 | Sep. 30, 2017 | Dec. 31, 2016 |
Ceded Credit Risk [Line Items] | ||
Reinsurance unsecured amounts due from reinsurers total | $ 297,116 | $ 46,364 |
Allianz Risk Transfer [Member] | ||
Ceded Credit Risk [Line Items] | ||
Reinsurance unsecured amounts due from reinsurers total | 186,479 | |
AXIS Specialty Limited [Member] | ||
Ceded Credit Risk [Line Items] | ||
Reinsurance unsecured amounts due from reinsurers total | 16,929 | |
Everest Reinsurance Company [Member] | ||
Ceded Credit Risk [Line Items] | ||
Reinsurance unsecured amounts due from reinsurers total | 63,104 | |
Florida Hurricane Catastrophe Fund [Member] | ||
Ceded Credit Risk [Line Items] | ||
Reinsurance unsecured amounts due from reinsurers total | $ 46,364 | |
Renaissance Reinsurance Ltd [Member] | ||
Ceded Credit Risk [Line Items] | ||
Reinsurance unsecured amounts due from reinsurers total | $ 30,604 |
Reinsurance - Reinsurance Arran
Reinsurance - Reinsurance Arrangements (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Reinsurance Disclosures [Abstract] | ||||
Direct premiums written | $ 274,744 | $ 241,888 | $ 816,350 | $ 741,782 |
Ceded premiums written | (7,303) | (151,432) | (318,827) | (298,365) |
Net premiums written | 267,441 | 90,456 | 497,523 | 443,417 |
Direct premiums earned | 254,809 | 234,500 | 735,807 | 682,571 |
Ceded premiums earned | (80,292) | (74,966) | (230,722) | (214,128) |
Premiums earned, net | 174,517 | 159,534 | 505,085 | 468,443 |
Direct Losses and Loss Adjustment Expenses | 531,268 | 73,487 | 687,707 | 198,069 |
Ceded Losses and Loss Adjustment Expenses | (414,893) | 61 | (420,578) | 1,680 |
Net Losses and Loss Adjustment Expenses | $ 116,375 | $ 73,548 | $ 267,129 | $ 199,749 |
Reinsurance - Prepaid Reinsuran
Reinsurance - Prepaid Reinsurance Premiums and Reinsurance Recoverable (Payable) and Receivable (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Jun. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Dec. 31, 2015 |
Reinsurance Disclosures [Abstract] | ||||||
Prepaid reinsurance premiums | $ 212,489 | $ 124,385 | ||||
Reinsurance recoverable on unpaid losses and LAE | 412,697 | $ 1,393 | 106 | $ 1,904 | $ 2,958 | $ 13,540 |
Reinsurance recoverable (payable) on paid losses | (1,532) | |||||
Reinsurance receivable, net | 186 | |||||
Reinsurance recoverable (payable) and receivable | $ 412,697 | $ (1,240) |
Insurance Operations - Beginnin
Insurance Operations - Beginning and Ending Balances and Changes in DPAC (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Insurance [Abstract] | ||||
DPAC, beginning of period | $ 73,591 | $ 67,190 | $ 64,912 | $ 60,019 |
Capitalized Costs | 36,999 | 33,227 | 110,653 | 100,444 |
Amortization of DPAC | (34,656) | (32,117) | (99,631) | (92,163) |
DPAC, end of period | $ 75,934 | $ 68,300 | $ 75,934 | $ 68,300 |
Insurance Operations - Addition
Insurance Operations - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2017USD ($) | |
UPCIC [Member] | |
Statutory Accounting Practices [Line Items] | |
Statutory ordinary dividend capacity | $ 57,700,000 |
Dividend paid to UVECF | 30,000,000 |
APPCIC [Member] | |
Statutory Accounting Practices [Line Items] | |
Dividend paid to UVECF | $ 0 |
UPCIC and APPCIC [Member] | |
Statutory Accounting Practices [Line Items] | |
Minimum capitalization rate | 10.00% |
Minimum capitalization amount | $ 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 | Sep. 30, 2017 | Dec. 31, 2016 |
UPCIC [Member] | ||
Statutory Accounting Practices [Line Items] | ||
Ten percent of total liabilities | $ 82,923 | $ 57,560 |
Statutory capital and surplus | 319,304 | 313,753 |
APPCIC [Member] | ||
Statutory Accounting Practices [Line Items] | ||
Ten percent of total liabilities | 655 | 464 |
Statutory capital and surplus | $ 16,389 | $ 17,280 |
Insurance Operations - Assets H
Insurance Operations - Assets Held by Insurance Regulators (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
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 | $ 3,922 | $ 3,952 |
Liability for Unpaid Losses a50
Liability for Unpaid Losses and Loss Adjustment Expenses - Change in Liability for Unpaid Losses and LAE (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Insurance [Abstract] | ||||
Balance at beginning of period | $ 22,645 | $ 60,144 | $ 58,494 | $ 98,840 |
Less: Reinsurance recoverable | (1,393) | (2,958) | (106) | (13,540) |
Net balance at beginning of period | 21,252 | 57,186 | 58,388 | 85,300 |
Incurred (recovered) related to current year | 116,262 | 73,721 | 265,811 | 199,907 |
Incurred (recovered) related to prior years | 113 | (173) | 1,318 | (158) |
Total incurred | 116,375 | 73,548 | 267,129 | 199,749 |
Paid related to Current year | 93,969 | 73,352 | 179,000 | 146,012 |
Paid related to Prior years | 15,912 | 5,077 | 118,771 | 86,732 |
Total paid | 109,881 | 78,429 | 297,771 | 232,744 |
Net balance at end of period | 27,746 | 52,305 | 27,746 | 52,305 |
Plus: Reinsurance recoverable | 412,697 | 1,904 | 412,697 | 1,904 |
Balance at end of period | $ 440,443 | $ 54,209 | $ 440,443 | $ 54,209 |
Long-Term Debt - Schedule of Lo
Long-Term Debt - Schedule of Long-Term Debt (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||
Total | $ 13,235 | $ 15,028 |
Surplus Note [Member] | ||
Debt Instrument [Line Items] | ||
Notes payable | $ 13,235 | 14,338 |
Promissory Note [Member] | ||
Debt Instrument [Line Items] | ||
Notes payable | $ 690 |
Stockholders' Equity - Activity
Stockholders' Equity - Activity Relating to Common Shares (Detail) shares in Thousands | 9 Months Ended | |
Sep. 30, 2017shares | ||
Equity [Abstract] | ||
Issued shares, beginning balance | 45,324 | |
Treasury shares, beginning balance | (10,272) | |
Outstanding shares, beginning balance | 35,052 | |
Shares repurchased | (761) | |
Vesting of performance share units | 115 | |
Stock option exercises | 71 | |
Common stock issued | 26 | |
Shares acquired through cashless exercise | (63) | [1] |
Issued shares, shares cancelled | (63) | |
Treasury shares, shares cancelled | 63 | |
Issued shares, ending balance | 45,473 | |
Treasury shares, ending balance | (11,033) | |
Outstanding shares, ending balance | 34,440 | |
[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 performance share units vested. These shares have been cancelled by the Company. |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - USD ($) | Aug. 31, 2017 | Apr. 12, 2017 | Jan. 23, 2017 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Jun. 30, 2016 |
Equity [Line Items] | ||||||||
Treasury shares acquired | 761,000 | |||||||
Dividends per share declared on outstanding common stock | $ 0.14 | $ 0.14 | $ 0.14 | $ 0.14 | $ 0.14 | $ 0.42 | $ 0.42 | |
Dividends payable date | Oct. 24, 2017 | Jul. 3, 2017 | Mar. 2, 2017 | |||||
Dividends payable, shareholders record date | Sep. 12, 2017 | Jun. 14, 2017 | Feb. 17, 2017 | |||||
June 2016 Share Repurchase Program [Member] | ||||||||
Equity [Line Items] | ||||||||
Treasury shares acquired | 760,559 | |||||||
Shares repurchased during period | $ 17,900,000 | |||||||
September 2017 Share Repurchase Program [Member] | ||||||||
Equity [Line Items] | ||||||||
Treasury shares acquired | 0 | |||||||
Maximum [Member] | June 2016 Share Repurchase Program [Member] | ||||||||
Equity [Line Items] | ||||||||
Amount of shares authorized to repurchase | $ 20,000,000 | |||||||
Maximum [Member] | September 2017 Share Repurchase Program [Member] | ||||||||
Equity [Line Items] | ||||||||
Amount of shares authorized to repurchase | $ 20,000,000 | $ 20,000,000 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Income Taxes [Line Items] | ||||
Income tax expense (benefit) | $ 6,635 | $ 17,281 | $ 41,354 | $ 54,400 |
Effective tax rate | 40.00% | 39.10% | 37.00% | 38.80% |
Other tax expense (benefit) | $ (1,200) | |||
U.S. federal statutory rate | 35.00% | |||
Adjustments for New Accounting Pronouncement [Member] | ||||
Income Taxes [Line Items] | ||||
Income tax expense (benefit) | $ (800) |
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 | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | ||
Numerator for EPS: | |||||
Net income | $ 9,964 | $ 26,882 | $ 70,539 | $ 85,756 | |
Less: Preferred stock dividends | (3) | (3) | (8) | (8) | |
Income available to common stockholders | $ 9,961 | $ 26,879 | $ 70,531 | $ 85,748 | |
Denominator for EPS: | |||||
Weighted average common shares outstanding | 34,686 | 35,042 | 34,927 | 34,878 | |
Plus: Assumed conversion of share-based compensation | [1] | 904 | 656 | 965 | 691 |
Assumed conversion of preferred stock | 25 | 25 | 25 | 25 | |
Weighted average diluted common shares outstanding | 35,615 | 35,723 | 35,917 | 35,594 | |
Basic earnings per common share | $ 0.29 | $ 0.77 | $ 2.02 | $ 2.46 | |
Diluted earnings per common share | $ 0.28 | $ 0.75 | $ 1.96 | $ 2.41 | |
[1] | Represents the dilutive effect of unvested Restricted Stock, unvested Performance Share Units and unexercised Stock Options. |
Other Comprehensive Income (L56
Other Comprehensive Income (Loss) - Components of Other Comprehensive Income (loss) Pre-Tax and After-Tax (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Equity [Abstract] | ||||
Net unrealized gains (losses) on investments available for sale arising during the period, Pre-tax | $ 1,207 | $ (694) | $ 9,248 | $ 10,460 |
Less: Amounts reclassified from accumulated other comprehensive income (loss), Pre-tax | (803) | (101) | (2,450) | (1,344) |
Net current period other comprehensive income (loss), Pre-tax | 404 | (795) | 6,798 | 9,116 |
Net unrealized gains (losses) on investments available for sale arising during the period, Tax | 461 | (265) | 3,535 | 3,998 |
Less: Amounts reclassified from accumulated other comprehensive income (loss), Tax | (308) | (39) | (938) | (513) |
Net current period other comprehensive income (loss), Tax | 153 | (304) | 2,597 | 3,485 |
Net unrealized gains (losses) on investments available for sale arising during the period, After-tax | 746 | (429) | 5,713 | 6,462 |
Less: Amounts reclassified from accumulated other comprehensive income (loss), After-tax | (495) | (62) | (1,512) | (831) |
Net current period other comprehensive income (loss), After-tax | $ 251 | $ (491) | $ 4,201 | $ 5,631 |
Other Comprehensive Income (L57
Other Comprehensive Income (Loss) - Reclassifications Out of Accumulated Other Comprehensive Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net realized gains (losses) on investments | $ 803 | $ 101 | $ 2,450 | $ 1,344 |
Income taxes | (6,635) | (17,281) | (41,354) | (54,400) |
NET INCOME | 9,964 | 26,882 | 70,539 | 85,756 |
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 | 803 | 101 | 2,450 | 1,344 |
Income taxes | (308) | (39) | (938) | (513) |
NET INCOME | $ 495 | $ 62 | $ 1,512 | $ 831 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets Measured for at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Maturities | $ 609,179 | $ 584,361 |
Equity Securities | 26,075 | 50,803 |
Short-term investments | 5,002 | |
Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 5,002 | |
Total assets accounted for at fair value | 635,254 | 640,166 |
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 | 55,016 | 74,267 |
Fair Value, Measurements, Recurring | Corporate Bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Maturities | 215,831 | 191,430 |
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 | 218,098 | 214,776 |
Fair Value, Measurements, Recurring | Municipal Bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed Maturities | 106,290 | 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 | 13,944 | 12,691 |
Fair Value, Measurements, Recurring | Common Stock [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity Securities | 5,683 | 93 |
Fair Value, Measurements, Recurring | Mutual Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity Securities | 20,392 | 50,710 |
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 | 26,075 | 50,803 |
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 | 5,683 | 93 |
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 | 20,392 | 50,710 |
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 | |
Total assets accounted for at fair value | 609,179 | 589,363 |
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 | 55,016 | 74,267 |
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 | 215,831 | 191,430 |
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 | 218,098 | 214,776 |
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 | 106,290 | 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 | $ 13,944 | $ 12,691 |
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 | Sep. 30, 2017 | Dec. 31, 2016 |
Surplus Note [Member] | ||
Fair Value Inputs Liabilities Quantitative Information [Line Items] | ||
Carrying Value | $ 13,235 | $ 14,338 |
Surplus Note [Member] | Level 3 [Member] | ||
Fair Value Inputs Liabilities Quantitative Information [Line Items] | ||
Estimated Fair Value | $ 11,949 | 13,282 |
Promissory Note [Member] | ||
Fair Value Inputs Liabilities Quantitative Information [Line Items] | ||
Carrying Value | 690 | |
Promissory Note [Member] | Level 3 [Member] | ||
Fair Value Inputs Liabilities Quantitative Information [Line Items] | ||
Estimated Fair Value | $ 690 |