Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Feb. 14, 2018 | Jun. 30, 2017 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | UVE | ||
Entity Registrant Name | UNIVERSAL INSURANCE HOLDINGS, INC. | ||
Entity Central Index Key | 891,166 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 34,863,056 | ||
Entity Public Float | $ 813,691,897 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
ASSETS | ||
Fixed maturities, at fair value | $ 639,334 | $ 584,361 |
Equity securities, at fair value | 62,215 | 50,803 |
Short-term investments, at fair value | 10,000 | 5,002 |
Investment real estate, net | 18,474 | 11,435 |
Total invested assets | 730,023 | 651,601 |
Cash and cash equivalents | 213,486 | 105,730 |
Restricted cash and cash equivalents | 2,635 | 2,635 |
Prepaid reinsurance premiums | 132,806 | 124,385 |
Reinsurance recoverable | 182,405 | 106 |
Premiums receivable, net | 56,500 | 53,833 |
Property and equipment, net | 32,866 | 32,162 |
Deferred policy acquisition costs, net | 73,059 | 64,912 |
Income taxes recoverable | 9,472 | 3,262 |
Deferred income tax asset, net | 9,286 | 10,674 |
Other assets | 12,461 | 10,707 |
Total assets | 1,454,999 | 1,060,007 |
LIABILITIES: | ||
Unpaid losses and loss adjustment expenses | 248,425 | 58,494 |
Unearned premiums | 532,444 | 475,756 |
Advance premium | 26,216 | 17,796 |
Accounts payable | 2,866 | 3,187 |
Book overdraft | 36,715 | |
Reinsurance payable, net | 110,381 | 80,891 |
Other liabilities and accrued expenses | 45,096 | 37,665 |
Long-term debt | 12,868 | 15,028 |
Total liabilities | 1,015,011 | 688,817 |
Commitments and Contingencies (Note 15) | ||
STOCKHOLDERS' EQUITY: | ||
Cumulative convertible preferred stock, $.01 par value Authorized shares - 1,000 Issued shares - 10 and 10 Outstanding shares - 10 and 10 Minimum liquidation preference - 9.99 and $9.99 per share | ||
Common stock, $.01 par value Authorized shares - 55,000 Issued shares – 45,778 and 45,324 Outstanding shares – 34,735 and 35,052 | 458 | 453 |
Treasury shares, at cost - 11,043 and 10,272 | (105,123) | (86,982) |
Additional paid-in capital | 86,186 | 82,263 |
Accumulated other comprehensive income (loss), net of taxes | (6,281) | (6,408) |
Retained earnings | 464,748 | 381,864 |
Total stockholders' equity | 439,988 | 371,190 |
Total liabilities and stockholders' equity | $ 1,454,999 | $ 1,060,007 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
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 | 45,778,000 | 45,324,000 | 45,525,000 | 44,769,000 |
Common stock, shares outstanding | 34,735,000 | 35,052,000 | 35,110,000 | 35,102,000 |
Treasury stock, shares | 11,043,000 | 10,272,000 | 10,415,000 | 9,667,000 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
PREMIUMS EARNED AND OTHER REVENUES | |||
Direct premiums written | $ 1,055,886 | $ 954,617 | $ 883,409 |
Change in unearned premium | (56,688) | (33,390) | (46,617) |
Direct premium earned | 999,198 | 921,227 | 836,792 |
Ceded premium earned | (310,405) | (288,811) | (332,793) |
Premiums earned, net | 688,793 | 632,416 | 503,999 |
Net investment income (expense) | 13,460 | 9,540 | 5,155 |
Net realized gains (losses) on investments | 2,570 | 2,294 | 1,060 |
Commission revenue | 21,253 | 17,733 | 14,870 |
Policy fees | 18,838 | 16,880 | 15,440 |
Other revenue | 7,002 | 6,426 | 6,020 |
Total premiums earned and other revenues | 751,916 | 685,289 | 546,544 |
OPERATING COSTS AND EXPENSES | |||
Losses and loss adjustment expenses | 350,428 | 301,229 | 187,739 |
General and administrative expenses | 231,004 | 221,177 | 183,782 |
Total operating costs and expenses | 581,432 | 522,406 | 371,521 |
INCOME BEFORE INCOME TAXES | 170,484 | 162,883 | 175,023 |
Income tax expense | 63,549 | 63,473 | 68,539 |
NET INCOME | $ 106,935 | $ 99,410 | $ 106,484 |
Basic earnings per common share | $ 3.07 | $ 2.85 | $ 3.06 |
Weighted average common shares outstanding - Basic | 34,841 | 34,919 | 34,799 |
Diluted earnings per common share | $ 2.99 | $ 2.79 | $ 2.97 |
Weighted average common shares outstanding - Diluted | 35,809 | 35,650 | 35,884 |
Cash dividend declared per common share | $ 0.69 | $ 0.69 | $ 0.63 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net income | $ 106,935 | $ 99,410 | $ 106,484 | |
Other comprehensive income (loss) | [1] | 127 | (2,402) | (2,171) |
Comprehensive income (loss) | $ 107,062 | $ 97,008 | $ 104,313 | |
[1] | Represents change in fair value of available for sale investments, net of income tax provision of $76 thousand for the year ended December 31, 2017 and a change in fair value of available for sale investments, net of income tax benefit of $1,486 thousand and $1,369 thousand for the years ended December 31, 2016 and 2015, respectively. |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock [Member] | Preferred Stock [Member] | Additional Paid-In Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Treasury Stock [Member] | |
Beginning Balance at Dec. 31, 2014 | $ 199,916 | $ 448 | $ 40,987 | $ 222,469 | $ (1,835) | $ (62,153) | ||
Beginning balance, shares at Dec. 31, 2014 | 44,769 | 12 | ||||||
Stock option exercises | $ (4,287) | $ 7 | 3,807 | (8,101) | ||||
Stock option exercises, shares | 751 | 751 | ||||||
Grants and vesting of restricted stock | $ (7,344) | $ 6 | (6) | (7,344) | ||||
Grants and vesting of restricted stock, shares | 615 | 615 | ||||||
Purchase of preferred stock | $ (256) | (256) | ||||||
Purchase of preferred stock, shares | (2) | |||||||
Purchases of treasury stock | (18,649) | (18,649) | ||||||
Reclassification of contingently redeemable common stock to common stock | $ 19,000 | 19,000 | ||||||
Retirement of treasury shares | $ (6) | (15,439) | 15,445 | |||||
Retirement of treasury shares, shares | (610) | (610) | ||||||
Share-based compensation | $ 17,386 | 17,386 | ||||||
Net income | 106,484 | 106,484 | ||||||
Change in net unrealized gains (losses) | [1] | (2,171) | (2,171) | |||||
Excess tax benefit (shortfall), net | [2] | 5,310 | 5,310 | |||||
Declaration of dividends | (22,297) | (22,297) | ||||||
Ending Balance at Dec. 31, 2015 | 293,092 | $ 455 | 70,789 | 306,656 | (4,006) | (80,802) | ||
Ending balance, shares at Dec. 31, 2015 | 45,525 | 10 | ||||||
Stock option exercises | $ (5,332) | $ 1 | 905 | (6,238) | ||||
Stock option exercises, shares | 124 | 124 | ||||||
Purchases of treasury stock | $ (8,510) | (8,510) | ||||||
Treasury shares reissued | $ 10,000 | 7,670 | 2,330 | |||||
Retirement of treasury shares | $ (3) | (6,235) | 6,238 | |||||
Retirement of treasury shares, shares | (325) | (325) | ||||||
Share-based compensation | $ 10,288 | 10,288 | ||||||
Net income | 99,410 | 99,410 | ||||||
Change in net unrealized gains (losses) | [1] | (2,402) | (2,402) | |||||
Excess tax benefit (shortfall), net | [2] | (1,154) | (1,154) | |||||
Declaration of dividends | (24,202) | (24,202) | ||||||
Ending Balance at Dec. 31, 2016 | 371,190 | $ 453 | 82,263 | 381,864 | (6,408) | (86,982) | ||
Ending balance, shares at Dec. 31, 2016 | 45,324 | 10 | ||||||
Vesting of performance share units | $ (1,183) | $ 1 | (1) | (1,183) | ||||
Vesting of performance share units, shares | 115 | 115 | ||||||
Stock option exercises | $ (6,039) | $ 8 | 5,578 | (11,625) | ||||
Stock option exercises, shares | 804 | 804 | ||||||
Common stock issued | $ 635 | $ 1 | 634 | |||||
Common stock issued, shares | 26 | 26 | ||||||
Purchases of treasury stock | $ (18,141) | (18,141) | ||||||
Retirement of treasury shares | $ (5) | (12,803) | 12,808 | |||||
Retirement of treasury shares, shares | (491) | (491) | ||||||
Share-based compensation | $ 10,515 | 10,515 | ||||||
Net income | 106,935 | 106,935 | ||||||
Change in net unrealized gains (losses) | [1] | 127 | 127 | |||||
Declaration of dividends | (24,051) | (24,051) | ||||||
Ending Balance at Dec. 31, 2017 | $ 439,988 | $ 458 | $ 86,186 | $ 464,748 | $ (6,281) | $ (105,123) | ||
Ending balance, shares at Dec. 31, 2017 | 45,778 | 10 | ||||||
[1] | Represents change in fair value of available for sale investments, net of income tax provision of $76 thousand for the year ended December 31, 2017 and a change in fair value of available for sale investments, net of income tax benefit of $1,486 thousand and $1,369 thousand for the years ended December 31, 2016 and 2015, respectively. | |||||||
[2] | Excess tax benefits (shortfall), net for the years ended December 31, 2016 and 2015 were recognized in additional paid-in capital. For the year ended December 31, 2017 excess tax benefits (shortfall) were recognized in income tax expense in the consolidated statements of income when the share-based awards vest or are settled. See “—Note 2 (Summary of Significant Accounting Policies – Recently Adopted Accounting Pronouncements).” |
CONSOLIDATED STATEMENTS OF STO7
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Statement Of Stockholders Equity [Abstract] | ||||
Tax benefit from AFS securities adjustment | [1] | $ 76 | $ (1,486) | $ (1,369) |
[1] | Represents change in fair value of available for sale investments, net of income tax provision of $76 thousand for the year ended December 31, 2017 and a change in fair value of available for sale investments, net of income tax benefit of $1,486 thousand and $1,369 thousand for the years ended December 31, 2016 and 2015, respectively. |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash flows from operating activities: | |||
Net income | $ 106,935 | $ 99,410 | $ 106,484 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Bad debt expense | 501 | 406 | 611 |
Depreciation and amortization | 4,058 | 3,242 | 2,033 |
Amortization of share-based compensation | 10,515 | 10,288 | 17,386 |
Amortization of original issue discount on debt | 10 | 149 | 521 |
Accretion of deferred credit | (149) | (521) | |
Book overdraft increase (decrease) | 36,715 | (5,924) | |
Net realized (gains) losses on investments | (2,570) | (2,294) | (1,060) |
Amortization of premium/accretion of discount, net | 3,994 | 3,481 | 1,831 |
Deferred income taxes | 1,309 | 4,724 | (693) |
Excess tax (benefits) shortfall from share-based compensation | (5,793) | 1,154 | (5,310) |
Other | 35 | 31 | 42 |
Issuance of common stock | 634 | ||
Net change in assets and liabilities relating to operating activities: | |||
Prepaid reinsurance premiums | (8,421) | (9,712) | 75,832 |
Reinsurance recoverable | (182,299) | 22,747 | 32,334 |
Reinsurance receivable, net | 186 | 167 | 7,115 |
Premiums receivable, net | (3,162) | (3,249) | (385) |
Accrued investment income | (708) | (1,514) | (298) |
Income taxes recoverable | (417) | 1,004 | 255 |
Deferred policy acquisition costs, net | (8,147) | (4,893) | (34,359) |
Other assets | (1,860) | 767 | (2,533) |
Unpaid losses and loss adjustment expenses | 189,931 | (40,346) | (35,513) |
Unearned premiums | 56,688 | 33,390 | 46,618 |
Accounts payable | (321) | 2,809 | (3,743) |
Reinsurance payable, net | 29,490 | 7,306 | 7,519 |
Income taxes payable | 3,510 | ||
Other liabilities and accrued expenses | 9,287 | (505) | 625 |
Advance premium | 8,420 | (7,017) | 6,894 |
Net cash provided by (used in) operating activities | 245,010 | 121,396 | 219,271 |
Cash flows from investing activities: | |||
Proceeds from sale of property and equipment | 23 | 36 | 86 |
Purchases of property and equipment | (4,618) | (8,223) | (11,869) |
Payments to acquire a business | (1,000) | ||
Purchases of equity securities | (89,302) | (66,688) | (65,038) |
Purchases of fixed maturities | (180,604) | (320,131) | (178,198) |
Purchases of short-term investments | (10,000) | (87,538) | |
Purchases of investment real estate, net | (7,218) | (5,496) | (6,220) |
Proceeds from sales of equity securities | 77,640 | 60,558 | 41,456 |
Proceeds from sales of fixed maturities | 26,179 | 86,018 | 38,379 |
Proceeds from sales of short-term investments | 12,500 | ||
Maturities of fixed maturities | 97,191 | 54,615 | 74,390 |
Maturities of short-term investments | 5,000 | 25,000 | 100,000 |
Net cash provided by (used in) investing activities | (85,709) | (174,311) | (83,052) |
Cash flows from financing activities: | |||
Preferred stock dividend | (10) | (10) | (10) |
Common stock dividend | (24,001) | (24,192) | (22,287) |
Issuance of common stock for stock option exercises | 119 | 511 | |
Purchase of treasury stock | (18,141) | (8,510) | (18,649) |
Sale of treasury stock | 2,965 | ||
Purchase of preferred stock | (256) | ||
Payments related to tax withholding for share-based compensation | (7,223) | (5,451) | (12,141) |
Excess tax benefits (shortfall) from share-based compensation | (1,154) | 5,310 | |
Repayment of debt | (2,170) | (2,136) | (8,470) |
Borrowings under promissory note | 1,390 | ||
Net cash provided by (used in) financing activities | (51,545) | (38,369) | (54,602) |
Net increase (decrease) in cash and cash equivalents | 107,756 | (91,284) | 81,617 |
Cash and cash equivalents at beginning of period | 105,730 | 197,014 | 115,397 |
Cash and cash equivalents at end of period | 213,486 | 105,730 | 197,014 |
Supplemental cash and non-cash flow disclosures: | |||
Interest paid | 348 | 421 | 963 |
Income taxes paid | 68,883 | 63,378 | $ 65,383 |
Income tax refund | $ 434 | $ 5,633 |
Nature of Operations and Basis
Nature of Operations and Basis of Presentation | 12 Months Ended |
Dec. 31, 2017 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Nature of Operations and Basis of Presentation | NOTE 1 – NATURE OF OPERATIONS AND BASIS OF PRESENTATION Nature of Operations, Basis of Presentation and Consolidation Universal Insurance Holdings, Inc. (“UVE”) is a Delaware corporation incorporated in 1990. UVE with its wholly-owned subsidiaries (the “Company”), is a vertically integrated insurance holding company performing all aspects of insurance underwriting, distribution and claims. Through its wholly-owned insurance company 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 its network of independent agents. Risk from catastrophic losses is managed through the use of reinsurance agreements. The Company’s primary product is residential homeowners’ insurance currently offered in sixteen states as of December 31, 2017, including Florida, which comprises the vast majority of the Company’s in-force policies. See “— Note 5 (Insurance Operations) The Company generates revenues primarily from the collection of premiums and invests funds in excess of those retained for claims-paying obligations and insurance operations. Other significant sources of revenue include brokerage commissions collected from reinsurers on certain reinsurance programs placed by the Insurance Entities, policy fees collected from policyholders by our wholly-owned managing general agency subsidiary and payment plan fees charged to policyholders who choose to pay their premiums in installments. The consolidated financial statements have been prepared in conformity with generally accepted accounting principles in the United States of America (“U.S. GAAP”). The consolidated financial statements include the accounts of UVE and its wholly-owned subsidiaries. All material intercompany balances and transactions have been eliminated in consolidation. To conform to current period presentation, certain amounts in the prior periods’ consolidated financial statements and notes have been reclassified. Such reclassifications were of an immaterial amount and had no effect on net income or stockholders’ equity. Consolidated Statement of Cash Flows – Additional Disclosure As discussed in “—Note 8 (Stockholders’ Equity)” Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. The Company’s primary use of estimates are in the recognition of liabilities for unpaid losses, loss adjustment expenses, and subrogation recoveries, and reinsurance recoveries. Actual results could differ from those estimates. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The significant accounting policies followed by the Company are summarized as follows: Cash and Cash Equivalents. The Company includes in cash equivalents all short-term, highly liquid investments that are readily convertible to known amounts of cash and have an original maturity of three months or less. These amounts are carried at cost, which approximates fair value. The Company excludes any net negative cash balances from cash and cash equivalents that the Company has with any single financial institution. These amounts represent outstanding checks or drafts not yet presented to the financial institution and are reclassified to liabilities and presented as book overdraft in the Company’s Consolidated Balance Sheets. Restricted Cash and Cash Equivalents. The Company classifies amounts of cash and cash equivalents that are restricted in terms of their use and withdrawal separately on the face the Consolidated Balance Sheets. See “— ,” for a discussion of the nature of the restrictions. Investment Securities, Available for Sale . All investment securities are classified as available for sale and consist of fixed maturities, equity securities and short-term investments with maturities of greater than three months. Investment securities available for sale are recorded at fair value on the consolidated balance sheet. Unrealized gains and losses on securities available for sale are excluded from earnings and reported as a component of other comprehensive income, net of related deferred taxes until reclassified to earnings upon the consummation of sales transaction with an unrelated third party or when the decline in fair value is deemed other than temporary. Gains and losses realized on the disposition of investment securities available for sale are determined on the FIFO basis and credited or charged to income. Premium and discount on investment securities are amortized and accreted using the interest method and charged or credited to investment income. Other Than Temporary Impairment. The assessment of whether the impairment of a security’s fair value is other than temporary is performed using a portfolio review as well as a case-by-case review considering a wide range of factors. There are a number of assumptions and estimates inherent in evaluating impairments and determining if they are other than temporary, including: 1) the Company’s ability and intent to hold the investment for a period of time sufficient to allow for an anticipated recovery in value; 2) the expected recoverability of principal and interest; 3) the extent and length of time to which the fair value has been less than amortized cost for fixed maturity securities or cost for equity securities and short-term investments referred to as severity and duration; 4) the financial condition, near-term and long-term prospects of the issue or issuer, including relevant industry conditions and trends, and implications of rating agency actions and offering prices referred to as credit quality; and 5) the specific reasons that a security is in a significant unrealized loss position, including market conditions which could affect liquidity. Additionally, once assumptions and estimates are made, any number of changes in facts and circumstances could cause the Company to subsequently determine that an impairment is other than temporary, including: 1) general economic conditions that are worse than previously forecasted or that have a greater adverse effect on a particular issuer or industry sector than originally estimated; 2) changes in the facts and circumstances related to a particular issue or issuer’s ability to meet all of its contractual obligations; and 3) changes in facts and circumstances obtained that causes a change in our ability or intent to hold a security to maturity or until it recovers in value. Management’s intent and ability to hold securities is a determination that is made at each respective balance sheet date giving consideration to factors known to management for each individual issuer of securities such as credit quality and other publicly available information. Investment Real Estate. Investment real estate is recorded at cost less accumulated depreciation. Depreciation is calculated on a straight-line basis over the estimated useful life of the assets. Real estate taxes, interest and other costs incurred during development and construction of properties are capitalized. Income and expenses from income producing real estate are reported under net investment income. Investment real estate is evaluated for impairment when events or circumstances indicate the carrying value may not be recoverable. Premiums Receivable. Generally, premiums are collected prior to or during the policy period as permitted under the Insurance Entities payment plans. Credit risk is minimized through the effective administration of policy payment plans whereby rules governing policy cancellation minimize exposure to credit risk. The Company performs a policy level evaluation to determine the extent the premiums receivable balance exceeds the unearned premiums balance. The Company then ages this exposure to establish an allowance for doubtful accounts based on prior credit experience. As of December 31, 2017 and 2016, the Company recorded allowances for doubtful accounts in the amounts of $680 thousand and $527 thousand, respectively. Property and Equipment. Property and equipment is recorded at cost less accumulated depreciation and are depreciated on the straight-line basis over the estimated useful life of the assets. Estimated useful life of all property and equipment ranges from three for equipment to twenty-seven-and-one-half years for buildings and improvements. Expenditures for improvements are capitalized and depreciated over the remaining useful life of the asset. Routine repairs and maintenance are expensed as incurred. Website development costs are capitalized and amortized over three years. Software is capitalized and amortized over three years. The Company reviews its property and equipment for impairment annually and/or whenever changes in circumstances indicate that the carrying amount may not be recoverable. Recognition of Premium Revenues. Direct and ceded premiums are recognized as revenue on a pro rata basis over the policy term or over the term of the reinsurance agreement. The portion of direct premiums that will be earned in the future is deferred and reported as unearned premiums. The portion of ceded premiums that will be earned in the future is deferred and reported as prepaid reinsurance premiums (ceded unearned premiums). Recognition of Commission Revenue . Commission revenue generated from reinsurance brokerage commission earned on ceded premium by the Insurance Entities is recognized over the term of the reinsurance agreements. Policy Fees. Policy fees, which represents fees paid by policyholders to the Managing General Agent (MGA)’s on all new and renewal insurance policies, are recognized as income upon policy inception. Other Revenue. The Company offers its policyholders the option of paying their policy premiums in full at inception or in installments. The Company charges fees to its policyholders that elect to pay their premium in installments and records such fees as revenue as the Company bills the fees to the policyholder. Deferred Policy Acquisition Costs . The Company defers direct commissions and premium taxes relating to the successful acquisition or renewal of insurance policies and defers the costs until recognized as expense over the terms of the policies to which they are related. Commissions on ceded premiums are deferred and amortized over the effective period of the related reinsurance policies. Deferred policy acquisition costs and deferred ceding commissions are netted for balance sheet presentation purposes and are recorded at their estimated realizable value. Intangible Assets. Goodwill and indefinite-lived intangible assets arising from the acquisition of a business is initially measured at cost and not subject to amortization. We assess goodwill and indefinite-lived intangible assets for potential impairments at the end of each fiscal year, or during the year if an event or other circumstance indicates that we may not be able to recover the carrying amount of the asset. Goodwill is included under Other Assets in the Consolidated Balance Sheets. Insurance Liabilities . Unpaid losses and loss adjustment expenses (“LAE”) are provided for as claims are incurred. The provision for unpaid losses and loss adjustment expenses includes: (1) the accumulation of individual case estimates for claims and claim adjustment expenses reported prior to the close of the accounting period; (2) estimates for unreported claims based on industry data; and (3) estimates of expenses for investigating and adjusting claims based on the experience of the Company and the industry. The Company estimates and accrues its right to subrogate reported or estimated claims against other parties. Subrogated claims are recorded at amounts estimated to be received from the subrogated parties, net of related costs and netted against unpaid losses and LAE. Inherent in the estimates of ultimate claims and subrogation are expected trends in claim severity, frequency and other factors that may vary as claims are settled. The amount of uncertainty in the estimates is significantly affected by such factors as the amount of claims experience relative to the development period, knowledge of the actual facts and circumstances and the amount of insurance risk retained. In addition, the Company’s policyholders are subject to adverse weather conditions, such as hurricanes, tornados, ice storms and tropical storms. The actuarial methods for making estimates for unpaid losses, LAE and subrogation recoveries and for establishing the resulting net liability are periodically reviewed, and any adjustments are reflected in current earnings. Provision for Premium Deficiency . It is the Company’s policy to evaluate and recognize losses on insurance contracts when estimated future claims, deferred policy acquisition costs and maintenance costs under a group of existing contracts will exceed anticipated future premiums. No accruals for premium deficiency were considered necessary as of December 31, 2017 and 2016. Reinsurance . Ceded written premium is recorded upon the effective date of the reinsurance contracts and earned over the contract period. Amounts recoverable from reinsurers are estimated in a manner consistent with the provisions of the reinsurance agreements and consistent with the establishment of the gross liability to the Company. Allowances are established for amounts deemed uncollectible if any. Income Taxes . The Company accounts for income taxes under the asset and liability method, that recognizes the amount of income taxes payable or refundable for the current year and recognizes deferred tax assets and liabilities based on the tax rates expected to be in effect during the periods in which the temporary differences reverse. Temporary differences arise when income or expenses are recognized in different periods on the consolidated financial statements than on the tax returns. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Deferred tax assets are reduced by a valuation allowance if it is more likely than not that all, or some portion, of the benefits related to deferred tax assets will not be realized. Income taxes includes both, estimated federal and state income taxes. Income (Loss) Per Share of Common Stock . Basic earnings per share excludes dilution and is computed by dividing the Company’s net income (loss) available to common stockholders, by the weighted-average number of shares of Common Stock outstanding during the period. Diluted earnings per share is computed by dividing the Company’s net income (loss) by the weighted average number of shares of Common Stock outstanding during the period plus the impact of all potentially dilutive common shares, primarily preferred stock, unvested shares and options. The dilutive impact of stock options and unvested shares is determined by applying the treasury stock method and the dilutive impact of the preferred stock is determined by applying the “if converted” method. Fair Value Measurements . The Company’s policy is to record transfers of assets and liabilities, if any, between Level 1 and Level 2 at their fair values as of the end of each reporting period, consistent with the date of the determination of fair value. There were no transfers during the years ended December 31, 2017 or 2016. Share-based Compensation. The Company accounts for share-based compensation based on the estimated grant-date fair value. The Company recognizes these compensation costs in general and administrative expenses and generally amortizes them on a straight-line basis over the requisite service period of the award, which is the vesting term. Individual tranches of performance-based awards are amortized separately since the vesting of each tranche is subject to independent annual measures. The fair value of stock option awards are estimated using the Black-Scholes option pricing model with the grant-date assumptions discussed in “— .” The fair value of the restricted share grants are determined based on the market price on the date of grant. Statutory Accounting. UPCIC and APPCIC are highly regulated and prepare and file financial statements in conformity with the statutory accounting practices prescribed or permitted by the Florida Office of Insurance Regulation (the “FLOIR”) and the National Association of Insurance Commissioners (“NAIC”) which differ from U.S. GAAP. The FLOIR requires that insurance companies domiciled in Florida prepare their statutory financial statements in accordance with the Manual (the “Manual”), as modified by the FLOIR. Accordingly, the admitted assets, liabilities and capital and surplus of UPCIC and APPCIC as of December 31, 2017 and 2016 and the results of operations and cash flows, for the years ended December 31, 2017, 2016 and 2015, for their regulatory filings have been prepared in accordance with statutory accounting principles as promulgated by the FLOIR and the NAIC. The statutory accounting principles are more restrictive than U.S. GAAP and are designed primarily to demonstrate the ability to meet obligations to policyholders and claimants. Recently Adopted Accounting Pronouncements In March 2016, the Financial Accounting Standards Board (“FASB”) revised U.S. GAAP with the issuance of Accounting Standard Update (“ASU”) 2016-09, Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting |
Investments
Investments | 12 Months Ended |
Dec. 31, 2017 | |
Investments Debt And Equity Securities [Abstract] | |
Investments | NOTE 3 – INVESTMENTS Securities Available for Sale The following table provides the cost or amortized cost and fair value of securities available for sale as of the dates presented (in thousands): December 31, 2017 Cost or Gross Gross Amortized Unrealized Unrealized Cost Gains Losses Fair Value Fixed Maturities: U.S. government obligations and agencies $ 60,481 $ — $ (877 ) $ 59,604 Corporate bonds 228,336 476 (1,308 ) 227,504 Mortgage-backed and asset-backed securities 221,956 19 (2,523 ) 219,452 Municipal bonds 120,883 599 (1,187 ) 120,295 Redeemable preferred stock 12,059 485 (65 ) 12,479 Equity Securities: Common stock 22,584 47 (3,820 ) 18,811 Mutual funds 45,456 179 (2,231 ) 43,404 Short-term investments 10,000 — — 10,000 Total $ 721,755 $ 1,805 $ (12,011 ) $ 711,549 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): December 31, 2017 December 31, 2016 % of Total % of Total Comparable Ratings Fair Value Fair Value Fair Value Fair Value AAA $ 135,237 20.8 % $ 131,260 22.3 % AA 292,496 45.1 % 275,480 46.7 % A 134,505 20.7 % 107,418 18.2 % BBB 80,566 12.4 % 67,263 11.4 % BB and Below 2,919 0.4 % 3,444 0.6 % No Rating Available 3,611 0.6 % 4,498 0.8 % Total $ 649,334 100.0 % $ 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): December 31, 2017 December 31, 2016 Cost or Cost or Amortized Amortized Cost Fair Value Cost Fair Value Mortgage-backed securities: Agency $ 118,014 $ 116,014 $ 110,724 $ 109,022 Non-agency 17,676 17,488 19,408 19,265 Asset-backed securities: Auto loan receivables 35,105 34,962 37,390 37,429 Credit card receivables 38,844 38,719 38,640 38,568 Other receivables 12,317 12,269 10,517 10,492 Total $ 221,956 $ 219,452 $ 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 (in thousands): December 31, 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 7 $ 35,464 $ (301 ) 9 $ 24,140 $ (576 ) Corporate bonds 159 142,208 (792 ) 39 29,796 (516 ) Mortgage-backed and asset-backed securities 83 137,481 (955 ) 37 70,218 (1,568 ) Municipal bonds 36 28,265 (246 ) 30 48,370 (941 ) Redeemable preferred stock 21 2,464 (65 ) — — — Equity securities: Common stock 2 17,846 (3,820 ) — — — Mutual funds 3 25,338 (135 ) 1 9,171 (2,096 ) Total 311 $ 389,066 $ (6,314 ) 116 $ 181,695 $ (5,697 ) 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 in Other Than Temporary Impairment (“OTTI”) As of December 31, 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, equity securities and short-term investments, the Company considers whether it has the intent and ability to hold the securities for a period of time sufficient to recover its cost basis. Where the Company lacks the intent and ability to hold to recovery, or believes the recovery period is extended, the security’s decline in fair value is considered other than temporary and is recorded in earnings. Based on our analysis, our fixed income portfolio is of high quality and we believe we will recover the amortized cost basis of our fixed income securities. We continually monitor the credit quality of our fixed income investments to assess if it is probable that we will receive our contractual or estimated cash flows in the form of principal and interest. Additionally, the Company considers management’s intent and ability to hold the securities until recovery and its credit analysis of the individual issuers of the securities. Based on this process and analysis, management has no reason to believe the unrealized losses for securities available for sale as of December 31, 2017 are other than temporary. As of December 31, 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 securities was $2.1 million. Based on our analysis, the company believes each security will recover in a reasonable period of time and the Company has the intent and ability to hold them until recovery. There were no OTTI losses recognized in the periods on the equity portfolio. The following table presents the amortized cost and fair value of investments with contractual maturities as of the date presented (in thousands): December 31, 2017 Cost or Amortized Cost Fair Value Due in one year or less $ 51,846 $ 51,804 Due after one year through five years 235,323 233,849 Due after five years through ten years 56,806 56,677 Due after ten years 75,725 75,073 Mortgage-backed and asset-backed securities 221,956 219,452 Perpetual maturity securities 12,059 12,479 Total $ 653,715 $ 649,334 Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay with or without penalty. The following table provides certain information related to securities available for sale during the periods presented (in thousands): Years Ended December 31, 2017 2016 Proceeds from sales and maturities (fair value) $ 206,010 $ 226,191 Gross realized gains $ 2,873 $ 2,329 Gross realized losses $ (303 ) $ (35 ) The following table presents the components of net investment income, comprised primarily of interest and dividends, for the periods presented (in thousands): Years Ended December 31, 2017 2016 2015 Fixed maturities $ 12,375 $ 9,523 $ 5,642 Equity securities 1,799 1,414 1,143 Short-term investments 22 75 246 Other (1) 1,459 734 409 Total investment income 15,655 11,746 7,440 Less: Investment expenses (2) (2,195 ) (2,206 ) (2,285 ) Net investment (expense) income $ 13,460 $ 9,540 $ 5,155 (1) Includes interest earned on cash and cash equivalents and restricted cash and cash equivalents. Also includes investment income earned on real estate investments. (2) Includes bank fees, investment accounting and advisory fees, and expenses associated with real estate investments. Investment Real Estate Investment real estate consisted of the following as of the dates presented (in thousands): December 31, 2017 December 31, 2016 Income Producing: Investment real estate $ 6,918 $ 6,918 Less: Accumulated depreciation (460 ) (281 ) 6,458 6,637 Non-Income Producing: Properties under development 12,016 4,798 Investment real estate, net $ 18,474 $ 11,435 |
Reinsurance
Reinsurance | 12 Months Ended |
Dec. 31, 2017 | |
Insurance [Abstract] | |
Reinsurance | NOTE 4 – REINSURANCE The Company seeks to reduce its risk of loss by reinsuring certain levels of risk in various areas of exposure with other insurance enterprises or reinsurers, generally as of the beginning of the hurricane season on June 1st of each year. The Company’s current reinsurance program consists of catastrophe excess of loss reinsurance, subject to the terms and conditions of the applicable agreements. The Company is responsible for deductible amounts before reinsurance attaches and 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 whether any of its reinsurers fail to make payments otherwise due to the Company. The Company eliminated the quota share ceded by UPCIC to its reinsurers beginning with the reinsurance program effective June 1, 2015. Under the quota share contracts that were effective June 1, 2014 through May 31, 2015, the quota share ceded by UPCIC to its reinsurers was 30%. By eliminating the quota share, the Company expects to increase its profitability by retaining all premiums. The elimination of the quota share also decreases the amount of losses and LAE that may be ceded by UPCIC and effectively increases the amount of risk retained by UPCIC and the Company. The elimination of the quota share also eliminates ceding commissions earned from the Company’s quota share reinsurer during the contract term and eliminates deferred ceding commissions, netted against deferred policy acquisition costs. The following table presents quota-share cession rates by reinsurance program and the years they were in effect: Reinsurance Program Cession Rate June 2014 - May 2015 30% June 2015 - May 2016 0% June 2016 - May 2017 0% June 2017 - May 2018 0% Amounts recoverable from reinsurers are estimated in a manner consistent with the terms of the reinsurance contracts. Reinsurance premiums, losses and LAE are accounted for on a basis consistent with those used in accounting for the original policies issued and the terms of the reinsurance contracts. Ceding commissions received in connection with quota share reinsurance are deferred and netted against deferred policy acquisition costs and amortized over the effective period of the related insurance policies. To reduce credit risk for amounts due from reinsurers, the Insurance Entities seek to do business with financially sound reinsurance companies and regularly evaluate the financial strength of all reinsurers used. The following table presents ratings from rating agencies and the unsecured amounts due from the Company’s reinsurers whose aggregate balance exceeded 3% of the Company’s stockholders’ equity as of the dates presented (in thousands): Ratings as of December 31, 2017 Standard and Poor's Moody's Due from as of AM Best Rating Investors December 31, Reinsurer Company Services Service, Inc. 2017 2016 Allianz Risk Transfer A+ AA- n/a $ 105,573 $ — Florida Hurricane Catastrophe Fund (1) n/a n/a n/a 52,054 46,364 Renaissance Reinsurance Ltd A+ AA- A1 22,545 — Total (2) $ 180,172 $ 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 Consolidated Statements of Income for the periods presented (in thousands): For the Year Ended December 31, 2017 Losses and Loss Premiums Premiums Adjustment Written Earned Expenses Direct $ 1,055,886 $ 999,198 $ 779,122 Ceded (318,826 ) (310,405 ) (428,694 ) Net $ 737,060 $ 688,793 $ 350,428 For the Year Ended December 31, 2016 Losses and Loss Premiums Premiums Adjustment Written Earned Expenses Direct $ 954,617 $ 921,227 $ 303,036 Ceded (298,523 ) (288,811 ) (1,807 ) Net $ 656,094 $ 632,416 $ 301,229 For the Year Ended December 31, 2015 Losses and Loss Premiums Premiums Adjustment Written Earned Expenses Direct $ 883,409 $ 836,792 $ 214,491 Ceded (256,961 ) (332,793 ) (26,752 ) Net $ 626,448 $ 503,999 $ 187,739 The following prepaid reinsurance premiums (payable) and reinsurance recoverable and receivable are reflected in the Consolidated Balance Sheets as of the dates presented (in thousands): As of December 31, 2017 2016 Prepaid reinsurance premiums $ 132,806 $ 124,385 Reinsurance recoverable on unpaid losses and LAE $ 182,405 $ 106 Reinsurance recoverable (payable) on paid losses — (1,532 ) Reinsurance receivable, net — 186 Reinsurance recoverable (payable) and receivable $ 182,405 $ (1,240 ) |
Insurance Operations
Insurance Operations | 12 Months Ended |
Dec. 31, 2017 | |
Insurance [Abstract] | |
Insurance Operations | NOTE 5 – INSURANCE OPERATIONS Deferred Policy Acquisition Costs, net The Company defers certain costs in connection with written policies, called Deferred Policy Acquisition Costs (“DPAC”), net of corresponding amounts of ceded reinsurance commissions, called Deferred Reinsurance Ceding Commissions (“DRCC”). Net DPAC is amortized over the effective period of the related insurance and reinsurance policies. The following table presents the beginning and ending balances and the changes in DPAC, net of DRCC, for the periods presented (in thousands): Years Ended December 31, 2017 2016 2015 DPAC, beginning of year $ 64,912 $ 60,019 $ 54,603 Capitalized Costs 144,849 130,243 116,954 Amortization of DPAC (136,702 ) (125,350 ) (111,538 ) DPAC, end of year $ 73,059 $ 64,912 $ 60,019 DRCC, beginning of year $ — $ — $ 28,943 Ceding Commissions Written — — (5,276 ) Earned Ceding Commissions — — (23,667 ) DRCC, end of year $ — $ — $ — DPAC (DRCC), net, beginning of year $ 64,912 $ 60,019 $ 25,660 Capitalized Costs, net 144,849 130,243 122,230 Amortization of DPAC (DRCC), net (136,702 ) (125,350 ) (87,871 ) DPAC (DRCC), net, end of year $ 73,059 $ 64,912 $ 60,019 Regulatory Requirements and Restrictions The Insurance Entities are subject to regulations and standards of the FLOIR. UPCIC also is subject to regulations and standards of regulatory authorities in other states where it is licensed, although as a Florida-domiciled insurer its principal regulatory authority is the FLOIR. These standards require the Insurance Entities to maintain specified levels of statutory capital and restrict the timing and amount of dividends and other distributions that may be paid by the Insurance Entities to the parent company. Except in the case of extraordinary dividends, these standards generally permit dividends to be paid from statutory unassigned surplus of the regulated subsidiary and are limited based on the regulated subsidiary’s level of statutory net income and statutory capital and surplus. The maximum dividend that may be paid by UPCIC and APPCIC to their immediate parent company, Universal Insurance Holding Company of the Florida (“UVECF”), without prior regulatory approval is limited by the provisions of Florida Insurance Code. These dividends are referred to as “ordinary dividends.” However, if the dividend, together with other dividends paid within the preceding twelve months, exceeds this statutory limit or is paid from sources other than earned surplus, the entire dividend is generally considered an “extraordinary dividend” and must receive prior regulatory approval. In accordance with Florida Insurance Code, and based on the calculations performed by the Company as of December 31, 2017, UPCIC has the capacity to pay ordinary dividends of $36.2 million during 2018. APPCIC does not meet the earning’s or surplus regulatory requirements to pay ordinary dividends during 2018. For the year ended December 31, 2017, UPCIC paid dividends of $30.0 million to UVECF. No dividends were paid from APPCIC to UVECF for the year ended December 31, 2017. The Florida Insurance Code requires insurance companies to maintain capitalization equivalent to the greater of ten percent of the insurer’s total liabilities but not less than $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): As of December 31, 2017 2016 Ten percent of total liabilities UPCIC $ 72,633 $ 57,560 APPCIC $ 572 $ 464 Statutory capital and surplus UPCIC $ 307,686 $ 313,753 APPCIC $ 16,633 $ 17,280 As of the dates in the table above, both UPCIC and APPCIC exceeded the minimum statutory capitalization requirement. UPCIC also met the capitalization requirements of the other states in which it is licensed as of December 31, 2017. UPCIC and APPCIC are also required to adhere to prescribed premium-to-capital surplus ratios and have met those requirements at such dates. Combined net income for UPCIC and APPCIC, as determined in accordance with statutory accounting practices is $35.6 million, $58.2 million and $53.6 million for the years ended December 31, 2017, 2016 and 2015, respectively. Through UVECF, the Insurance Entities’ parent company, UVE made capital contributions for the periods presented (in thousands): Years Ended December 31, 2017 2016* 2015 Capital Contributions $ — $ 2,000 $ — *UVECF made this contribution to APPCIC’s capital in conjunction with APPCIC’s request for FLOIR approval to transact commercial residential insurance products in Florida. The FLOIR granted APPCIC’s request. UPCIC and APPCIC are required annually to comply with the NAIC risk-based capital (“RBC”) requirements. RBC requirements prescribe a method of measuring the amount of capital appropriate for an insurance company to support its overall business operations in light of its size and risk profile. NAIC RBC requirements are used by regulators to determine appropriate regulatory actions relating to insurers who show signs of a weak or deteriorating condition. As of December 31, 2017, based on calculations using the appropriate NAIC RBC formula, UPCIC’s and APPCIC’s reported total adjusted capital was in excess of the requirements. The Insurance Entities are required by various state laws and regulations to maintain certain assets in depository accounts. The following table represents assets held by insurance regulators as of the dates presented (in thousands): As of December 31, 2017 2016 Restricted cash and cash equivalents $ 2,635 $ 2,635 Investments $ 3,910 $ 3,952 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2017 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment | NOTE 6 – PROPERTY AND EQUIPMENT Property and equipment consisted of the following as of the dates presented (in thousands): As of December 31, 2017 2016 Land $ 4,489 $ 4,489 Building 17,644 17,633 Computers 5,589 5,577 Furniture 1,637 1,381 Automobiles and other vehicles 6,857 5,523 Software 2,646 2,035 Total 38,862 36,638 Less: Accumulated depreciation (10,829 ) (8,527 ) Net of accumulated deprecation 28,033 28,111 Construction in progress 4,833 4,051 Property and equipment, net $ 32,866 $ 32,162 Depreciation and amortization was $3.9 million, $3.1 million and $1.9 million for the years ended December 31, 2017, 2016 and 2015, respectively. The following table provides realized gains (losses) on the disposal of property and equipment during the periods presented (in thousands): For the Years Ended December 31, 2017 2016 2015 Realized gain (loss) on disposal $ (35 ) $ (31 ) $ (26 ) |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | NOTE 7 – LONG-TERM DEBT Long-term debt consists of the following as of the dates presented (in thousands): As of December 31, 2017 2016 Surplus note $ 12,868 $ 14,338 Promissory note — 690 Total $ 12,868 $ 15,028 Surplus Note On November 9, 2006, UPCIC entered into a $25.0 million surplus note with the State Board of Administration of Florida (the “SBA”) under Florida’s Insurance Capital Build-Up Incentive Program (the “ICBUI”). The surplus note has a twenty-year term and accrues interest, adjusted quarterly based on the 10-year Constant Maturity Treasury Index. The carrying amount of the surplus note is included in the statutory capital and surplus of UPCIC of approximately $12.9 million as of December 31, 2017. The effective interest rate paid on the surplus note was 2.31%, 1.88% and 2.21% for years ended December 31, 2017, 2016 and 2015, respectively. Any payment of principal or interest by UPCIC on the surplus note must be approved by the Commissioner of the OIR. Quarterly principal payments of $368 thousand are due through 2026. Aggregate principal payments of $1.5 million were made during each of the years ended December 31, 2017, 2016 and 2015. UPCIC is in compliance with each of the loan’s covenants as implemented by rules promulgated by the SBA. An event of default will occur under the surplus note, as amended, if UPCIC: (i) defaults in the payment of the surplus note; (ii) fails to submit quarterly filings to the FLOIR; (iii) fails to maintain at least $50 million of surplus during the term of the surplus note, except for certain situations; (iv) misuses proceeds of the surplus note; (v) makes any misrepresentations in the application for the program; (vi) pays any dividend when principal or interest payments are past due under the surplus note; or (vii) fails to maintain a level of surplus and reinsurance sufficient to cover in excess of UPCIC’s 1-in-100 year probable maximum loss as determined by a hurricane loss model accepted by the Florida Commission on Hurricane Loss Projection Methodology as certified by the FLOIR annually. To avoid a penalty rate, UPCIC must maintain either a ratio of net written premium to surplus of 2:1 or a ratio of gross written premiums to surplus of 6:1 according to a calculation method set forth in the surplus note. As of December 31, 2017, UPCIC’s net written premium to surplus ratio and gross written premium to surplus ratio were in excess of the required minimums and, therefore, UPCIC is not subject to increases in interest rates. Maturities The following table provides an estimate of principal payments to be made for the amounts due on the surplus note as of December 31, 2017 (in thousands): 2018 $ 1,471 2019 1,471 2020 1,471 2021 1,471 2022 1,471 Thereafter 5,513 Total $ 12,868 Interest Expense Interest expense was $0.3 million, $0.4 million, and $1.0 million for the years ended December 31, 2017, 2016 and 2015, respectively. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Stockholders' Equity | NOTE 8 – STOCKHOLDERS’ EQUITY Cumulative Convertible Preferred Stock As of December 31, 2017 and 2016, the Company had shares outstanding of Series A Preferred Stock. Each share of Series A Preferred Stock is convertible by the Company into shares of Common Stock. The following table provides certain information for the convertible Series A preferred stock as of the dates presented (in thousands, except conversion factor): As of December 31, 2017 2016 Shares issued and outstanding 10 10 Conversion factor 2.50 2.50 Common shares resulting if converted 25 25 The Series A Preferred Stock pays a cumulative dividend of $0.25 per share per quarter. The Company declared and paid aggregate dividends to the holder of record of the Company’s Series A Preferred Stock of $10 thousand for each of the years ended December 31, 2017 and 2016. Common Stock The following table summarizes the activity relating to shares of the Company’s Common Stock during the periods presented (in thousands): Issued Treasury Outstanding Shares Shares Shares Balance, as of December 31, 2014 44,769 (9,667 ) 35,102 Shares repurchased — (748 ) (748 ) Options exercised 751 — 751 Restricted stock grant 615 — 615 Shares acquired through cashless exercise (1) — (610 ) (610 ) Shares cancelled (610 ) 610 — Balance, as of December 31, 2015 45,525 (10,415 ) 35,110 Shares repurchased — (441 ) (441 ) Shares reissued — 584 584 Options exercised 124 — 124 Shares acquired through cashless exercise (1) — (325 ) (325 ) Shares cancelled (325 ) 325 — Balance, as of December 31, 2016 45,324 (10,272 ) 35,052 Shares repurchased — (771 ) (771 ) Vesting of performance share units 115 — 115 Shares reissued — — — Options exercised 804 — 804 Common stock issued 26 — 26 Shares acquired through cashless exercise (1) — (491 ) (491 ) Shares cancelled (491 ) 491 — Balance, as of December 31, 2017 45,778 (11,043 ) 34,735 (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 or restricted stock (as defined in “— Note 9 (Share-Based Compensation) In April 2016, the Company sold 583,771 shares of UVE common stock in a private placement to RenRe Ventures at a price of $17.13 per share for total consideration of $10 million, which was comprised of $2.965 million in cash and $7.035 million in cancellation of outstanding indebtedness, including accrued interest. 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. UVE repurchased 861,296 shares, at an aggregate price of approximately $20.0 million, pursuant to such repurchase program through December 31, 2017. 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. UVE repurchased 8,192 shares, at an aggregate price of approximately $0.2 million, pursuant to such repurchase program through December 31, 2017. During the year ended December 31, 2017, UVE repurchased an aggregate of 770,559 shares of its common stock in the open market in compliance with Exchange Act Rule 10b-18 at a total cost of $18.1 million. Dividends Declared The Company declared dividends on its outstanding shares of common stock to its shareholders of record as follows for the periods presented (in thousands, except per share amounts): For the Years Ended December 31, 2017 2016 2015 Per Share Aggregate Per Share Aggregate Per Share Aggregate Amount Amount Amount Amount Amount Amount First Quarter $ 0.14 $ 4,932 $ 0.14 $ 4,915 $ 0.12 $ 4,237 Second Quarter $ 0.14 $ 4,887 $ 0.14 $ 4,913 $ 0.12 $ 4,283 Third Quarter $ 0.14 $ 4,830 $ 0.14 4,903 $ 0.12 $ 4,275 Fourth Quarter $ 0.27 9,392 $ 0.27 9,461 $ 0.27 $ 9,492 Applicable provisions of the Delaware General Corporation Law may affect the ability of the Company to declare and pay dividends on its Common Stock. In particular, pursuant to the Delaware General Corporation Law, a company may pay dividends out of its surplus, as defined, or out of its net profits, for the fiscal year in which the dividend is declared and/or the preceding year. Surplus is defined in the Delaware General Corporation Law to be the excess of net assets of the company over capital. Capital is defined to be the aggregate par value of shares issued. Moreover, the ability of the Company to pay dividends, if and when declared by its Board of Directors, may be restricted by regulatory limits on the amount of dividends, which the Insurance Entities are permitted to pay the Company. Restrictions limiting the payment of dividends by UVE UVE pays dividends to shareholders, which are funded by earnings on investments and distributions from the earnings of its consolidated subsidiaries. Generally, other than as disclosed above and in “— Note 7 (Long-Term Debt) Note 5 (Insurance Operations) |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Share-Based Compensation | NOTE 9 – SHARE-BASED COMPENSATION Equity Compensation Plan Under the Company’s 2009 Omnibus Incentive Plan, as amended (the “Incentive Plan”), 2,064,493 shares remained reserved for issuance and were available for new awards under the Incentive Plan as of December 31, 2017. Awards under the Incentive Plan may include incentive stock options, non-qualified stock option awards (“Stock Option”), stock appreciation rights, non-vested shares of Common Stock (“Restricted Stock”), restricted stock units, performance share units (“PSUs”), other share-based awards and cash-based incentive awards. Awards under the Incentive Plan may be granted to employees, directors, consultants or other persons providing services to the Company or its affiliates. The following table provides certain information related to Stock Options and PSUs during the year ended December 31, 2017 (in thousands, except per share data): For the Year Ended December 31, 2017 Stock Options Performance Share Units Weighted Weighted Average Weighted Average Exercise Aggregate Average Number Grant Date Number of Price per Intrinsic Remaining of Share Fair Value Options (2) Share (1) Value Term Units (2) per Share Outstanding as of December 31, 2016 3,214 $ 15.77 173 $ 23.18 Granted 797 27.20 147 27.20 Forfeited — — n/a n/a Exercised (804 ) 6.95 n/a n/a Vested n/a n/a (115 ) 23.18 Expired — — n/a n/a Outstanding as of December 31, 2017 3,207 $ 20.82 $ 20,935 6.18 205 $ 26.07 Exercisable as of December 31, 2017 1,325 $ 18.62 $ 11,570 4.47 (1) Unless otherwise specified, such as in the case of the exercise of Stock Options, the per share prices were determined using the closing price of the Company’s Common Stock as quoted on the exchanges on which the Company was listed. Shares issued upon exercise of options represent original issuances in private transactions pursuant to Section 4(2) of the Securities Act of 1933, (2) All shares outstanding as of December 31, 2017 are expected to vest. n/a Not applicable The following table provides certain information in connection with the Company’s share-based compensation arrangements for the periods presented (in thousands): Years Ended December 31, 2017 2016 2015 Compensation expense: Stock options $ 6,907 $ 3,641 $ 1,389 Restricted stock — 3,433 15,997 Performance share units 3,608 3,214 — Total $ 10,515 $ 10,288 $ 17,386 Deferred tax benefits: Stock options $ 2,640 $ 1,392 $ 532 Restricted stock — 1,312 4,816 Performance share units 1,379 1,229 — Total $ 4,019 $ 3,933 $ 5,348 Realized tax benefits: Stock options $ 5,831 $ 724 $ 5,369 Restricted stock — 4,326 — Performance share units 1,264 — — Total $ 7,095 $ 5,050 $ 5,369 Excess tax benefits (shortfall) (1): Stock options $ 5,548 $ 642 $ 5,310 Restricted stock — (1,796 ) — Performance share units 245 — — Total $ 5,793 $ (1,154 ) $ 5,310 Weighted average fair value per option or share: Stock option grants $ 10.18 $ 6.01 $ 6.34 Restricted stock grants $ — $ — $ 26.04 Performance share unit grants $ 27.20 $ 23.18 $ — Intrinsic value of options exercised $ 15,256 $ 1,894 $ 14,734 Fair value of restricted stock vested $ — $ 11,319 $ 17,505 Fair value of performance share units vested $ 3,307 $ — $ — Cash received for strike price and tax withholdings $ — $ 119 $ 519 Shares acquired through cashless exercise (2) 491 325 611 Value of shares acquired through cashless exercise (2) $ 12,808 $ 6,238 $ 15,445 (1) Excess tax benefits (shortfalls) for the years ended December 31, 2016 and 2015 were recognized in additional paid in capital and within income through December 31, 2017. (2) All shares acquired represent shares tendered to cover the strike price for options and tax withholdings on the intrinsic value of options exercised, Restricted Stock vested or PSUs vested. These shares have been canceled by the Company. The following table provides the amount of unrecognized compensation expense as of the most recent balance sheet date and the weighted average period over which those expenses will be recorded for both Stock Options and PSUs (dollars in thousands): As of December 31, 2017 Stock Performance Options Share Units Unrecognized expense $ 9,064 $ 1,176 Weighted average remaining years 1.69 1.31 Stock Options Stock Options granted by the Company generally expire between 5 to 10 years from the grant date and generally vest over a 1 to 3 year service period commencing on the grant date. The Company used the modified Black-Scholes model to estimate the fair value of employee Stock Options on the date of grant utilizing the assumptions noted below. The risk-free rate is based on the U.S. Treasury bill yield curve in effect at the time of grant for the expected term of the option. The expected term of options granted represents the period of time that the options are expected to be outstanding. Expected volatilities are based on historical volatilities of our Common Stock. The dividend yield was based on expected dividends at the time of grant. The following table provides the assumptions utilized in the Black-Scholes model for Stock Options granted during the periods presented: Years Ended December 31, 2017 2016 2015 Weighted-average risk-free interest rate 1.94 % 1.40 % 0.54 % Expected term of option in years 5.84 5.44 3.38 Weighted-average volatility 45.1 % 45.2 % 44.3 % Dividend yield 2.0 % 3.4 % 3.4 % Weighted average grant date fair value per share $ 10.18 $ 6.01 $ 6.34 Restricted Stock Grants Restricted Stock grants are awarded to certain employees in consideration for services rendered pursuant to terms of employment agreements and or to provide to those employees with a continued incentive to share in the success of the Company. Restricted Stock generally vests over a three year service period commencing on the grant date. Performance Share Units PSUs are awarded to certain employees in consideration for services rendered pursuant to terms of employment agreements and provide those employees with a continued incentive to share in the success of the Company. Each performance share unit has a value equal to one share of common stock and generally vests over a three year service period commencing on the grant date. |
Employee Benefit Plan
Employee Benefit Plan | 12 Months Ended |
Dec. 31, 2017 | |
Postemployment Benefits [Abstract] | |
Employee Benefit Plan | NOTE 10 – EMPLOYEE BENEFIT PLAN Effective January 1, 2009, the Company adopted a qualified retirement plan covering substantially all employees. It is designed to help the employees meet their financial needs during their retirement years. Eligibility for participation in the plan is generally based on employee’s date of hire or on completion of a specified period of service. Employer contributions to this plan are made in cash. The plan titled the “Universal Property & Casualty 401(K) Profit Sharing Plan and Trust” (the “401(k) Plan”) is a defined contribution plan that allows employees to defer compensation through contributions to the 401(k) Plan. The contributions are invested on the employees’ behalf, and the benefits paid to employees are based on contributions and any earnings or loss. The 401(k) Plan includes a Company contribution of 100 percent of each eligible participant’s contribution that does not exceed five percent of their compensation during the 401(k) Plan year. The Company may make additional profit-sharing contributions. However, no additional profit-sharing contribution was made during the years ended December 31, 2017, 2016 and 2015. The Company accrued for aggregate contributions of approximately $1.6 million, $1.2 million and $1.0 million to the 401(k) Plan during the years ended December 31, 2017, 2016 and 2015, respectively. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | NOTE 11 – RELATED PARTY TRANSACTIONS Scott P. Callahan, a director of the Company, provided the Company with consulting services and advice with respect to the Company’s reinsurance and related matters through SPC Global RE Advisors LLC, an entity affiliated with Mr. Callahan. The Company entered into the consulting agreement with SPC Global RE Advisors LLC effective June 6, 2013. The Company and SPC Global RE Advisors LLC terminated the consulting agreement on September 18, 2015 by mutual consent. The following table provides payments made by the Company to related parties for the periods presented (in thousands): Years Ended December 31, 2017 2016 2015 SPC Global RE Advisors LLC $ — $ — $ 90 There were no amounts due to SPC Global RE Advisors LLC as of December 31, 2015. Payments due to SPC Global RE Advisors LLC were generally made in the month the services were provided. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 12 – INCOME TAXES Significant components of the income tax provision are as follows for the periods presented (in thousands): For the Years Ended December 31, 2017 2016 2015 Current: Federal $ 53,962 $ 50,645 $ 61,830 State and local 8,278 8,105 7,402 Total current expense (benefit) 62,240 58,750 69,232 Deferred: Federal 851 4,106 (775 ) State and local 458 617 82 Total deferred expense (benefit) 1,309 4,723 (693 ) Income tax expense $ 63,549 $ 63,473 $ 68,539 The following table reconciles the statutory federal income tax rate to the Company’s effective income tax rate for the periods presented: For the Years Ended December 31, 2017 2016 2015 Expected provision at federal statutory tax rate 35.0 % 35.0 % 35.0 % Increases (decreases) resulting from: State income tax, net of federal tax benefit 3.2 % 3.2 % 3.4 % Effect of change in tax rate 2.8 % — 0.1 % Disallowed meals & entertainment 0.4 % 0.3 % 0.2 % Disallowed compensation 0.4 % 0.4 % 1.1 % Excess tax benefit (3.4 %) — — Other, net (1.1 %) 0.1 % (0.6 %) Total income tax expense (benefit) 37.3 % 39.0 % 39.2 % During the year ended December 31, 2017, the Company’s excess income tax benefit of $5.8 million was reflected as an income tax benefit in the 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)” Recent changes in federal tax law and applicable statutory rates have affected the Company’s balances of deferred income tax assets and liabilities. On December 22, 2017, the Tax Cuts and Jobs Act of 2017 was signed into law. Under US GAAP, the effect of a change in tax law is recorded discretely as a component of the income tax provision related to continuing operations in the period of enactment. The effect of the change in tax law resulted in a reduction to the Company’s net deferred income tax assets of $4.7 million and a corresponding offset to income tax expense in the consolidated statement of income for the year ended December 31, 2017. In addition, during the year ended December 31, 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. Additional factors giving rise to the differences in the Company’s effective tax rate, when compared to statutory rates in the current and prior years, include non-deductible executive compensation, tax-exempt interest income, and the current expansion outside of Florida into non-income taxing state jurisdictions. The Company accounts for income taxes using a balance sheet approach. As of December 31, 2017 and 2016, the significant components of the Company’s deferred income taxes consisted of the following (in thousands): As of December 31, 2017 2016 Deferred income tax assets: Unearned premiums $ 19,916 $ 26,861 Advanced premiums 1,275 1,314 Unpaid losses and LAE 385 374 Share-based compensation 3,894 3,256 Accrued wages 288 297 Allowance for uncollectible receivables 224 284 Additional tax basis of securities 33 51 Capital loss carryforwards 822 759 Other comprehensive income 2,544 3,982 Other 84 131 Total deferred income tax assets 29,465 37,309 Valuation allowance (523 ) (133 ) Deferred income tax assets, net of valuation allowance 28,942 37,176 Deferred income tax liabilities: Deferred policy acquisition costs, net (18,205 ) (24,812 ) Prepaid expenses (435 ) (504 ) Fixed assets (881 ) (880 ) Other (135 ) (306 ) Total deferred income tax liabilities (19,656 ) (26,502 ) Net deferred income tax asset $ 9,286 $ 10,674 At each balance sheet date, management assesses the need to establish a valuation allowance that reduces deferred income tax assets when it is more likely than not that all, or some portion, of the deferred income tax assets will not be realized. A valuation allowance would be based on all available information including the Company’s assessment of uncertain tax positions and projections of future taxable income and capital gain from each tax-paying component in each jurisdiction, principally derived from business plans and available tax planning strategies. Management believes that it is more likely than not that a portion of the benefit relating to the state capital loss carryforward will not be realized. In recognition of this risk, the Company has provided an additional valuation allowance during 2017 of $297 thousand on the balance of the deferred income tax asset as of December 31, 2017. If management’s assumptions change and determine the Company will be able to realize these capital loss carryforwards, the income tax benefits related to any reversal of the valuation allowance on deferred income tax assets as of December 31, 2017, will be accounted for as a future reduction in income tax expense. The Company has adopted Accounting for Uncertainty in Income Taxes (“ASC 740”) which clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements. ASC 740 provides a threshold for the financial statement recognition and measurement of an income tax position taken or expected to be taken in an income tax return. The Company’s policy is to classify interest and penalties related to unrecognized tax positions, if any, in its provision for income taxes. As of December 31, 2017 and 2016, the Company determined that no uncertain tax liabilities are required. The Company filed a consolidated federal income tax return for the tax years ended December 31, 2016, 2015 and 2014 and intends to file the same for the tax year ended December 31, 2017. The tax allocation agreement between the Company and the Insurance Entities provide that they will incur income taxes based on a computation of taxes as if they were stand-alone taxpayers. The computations are made utilizing the financial statements of the Insurance Entities prepared on a statutory basis of accounting and prior to consolidating entries which include the conversion of certain balances and transactions of the statutory financial statements to a U.S. GAAP basis. The Company files its income tax returns as prescribed by the tax laws of the jurisdictions in which it operates. The Company’s 2014 through 2016 tax years are subject to examination by the Internal Revenue Service and various tax years remain open to examination in certain state jurisdiction. In February 2018, the Company received notification from the Internal Revenue Service for an examination of the 2015 tax return. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | NOTE 13 – EARNINGS PER SHARE Basic earnings per share (“EPS”) is based on the weighted average number of common shares outstanding for the period, excluding any dilutive common share equivalents. Diluted EPS reflects the potential dilution resulting from exercises of stock options, vesting of performance share units, vesting of restricted stock, and conversion of preferred stock. The following table reconciles the numerator (i.e., income) and denominator (i.e., shares) of the basic and diluted earnings per share computations for the periods presented (in thousands, except per share data): Years Ended December 31, 2017 2016 2015 Numerator for EPS: Net income $ 106,935 $ 99,410 $ 106,484 Less: Preferred stock dividends (10 ) (10 ) (10 ) Income available to common stockholders $ 106,925 $ 99,400 $ 106,474 Denominator for EPS: Weighted average common shares outstanding 34,841 34,919 34,799 Plus: Assumed conversion of share-based compensation (1) 943 706 1,056 Assumed conversion of preferred stock 25 25 29 Weighted average diluted common shares outstanding 35,809 35,650 35,884 Basic earnings per common share $ 3.07 $ 2.85 $ 3.06 Diluted earnings per common share $ 2.99 $ 2.79 $ 2.97 Weighted average number of antidilutive shares 1,504 1,583 311 (1) Represents the dilutive effect of unexercised Stock Options, unvested Performance Share Units, and unvested Restricted Stock. |
Other Comprehensive Income (Los
Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Other Comprehensive Income (Loss) | NOTE 14 – OTHER COMPREHENSIVE INCOME (LOSS) The following table provides the components of other comprehensive income (loss) on a pretax and after-tax basis for the periods presented (in thousands): Years Ended December 31, 2017 2016 2015 Pre-tax Tax After-tax Pre-tax Tax After-tax Pre-tax Tax After-tax Net unrealized gains (losses) on investments available for sale arising during the period $ 2,773 1,058 $ 1,715 $ (1,594 ) (609 ) $ (985 ) $ (2,480 ) $ (963 ) $ (1,517 ) Less: Amounts reclassified from accumulated other comprehensive income (loss) (2,570 ) (982 ) (1,588 ) (2,294 ) (877 ) (1,417 ) (1,060 ) (406 ) (654 ) Net current period other comprehensive income (loss) $ 203 $ 76 $ 127 $ (3,888 ) $ (1,486 ) $ (2,402 ) $ (3,540 ) $ (1,369 ) $ (2,171 ) The following table provides the reclassifications out of accumulated other comprehensive income for the periods presented (in thousands): Amounts Reclassified from Accumulated Other Comprehensive Income Details about Accumulated Other Years Ended December 31, Affected Line Item in the Statement Comprehensive Income Components 2017 2016 2015 Where Net Income is Presented Unrealized gains (losses) on investments available for sale $ 2,570 $ 2,294 $ 1,060 Net realized gains (losses) on investments (982 ) (877 ) (406 ) Income taxes, current $ 1,588 $ 1,417 $ 654 Net of tax |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 15 – COMMITMENTS AND CONTINGENCIES Litigation Lawsuits are filed against the Company from time to time. Many of these lawsuits involve claims under policies that we underwrite and reserve for as an insurer. We are also involved in various legal proceedings and litigation unrelated to claims under our policies that arise in the ordinary course of business operations. Management believes that any liabilities that may arise as a result of these legal matters will not have a material adverse effect on our financial condition or results of operations. The Company contests liability and/or the amount of damages as appropriate in each pending matter. In accordance with applicable accounting guidance, the Company establishes an accrued liability for legal matters when those matters present loss contingencies that are both probable and estimable. Legal proceedings are subject to many uncertain factors that generally cannot be predicted with assurance, and the Company may be exposed to losses in excess of any amounts accrued. The Company currently estimates that the reasonably possible losses for legal proceedings, whether in excess of a related accrued liability or where there is no accrued liability, and for which the Company is able to estimate a possible loss, are immaterial. This represents management’s estimate of possible loss with respect to these matters and is based on currently available information. These estimates of possible loss do not represent our maximum loss exposure, and actual results may vary significantly from current estimates. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | NOTE 16 – FAIR VALUE MEASUREMENTS U.S. 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. U.S. 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. U.S. GAAP does not prescribe which valuation technique should be used when measuring fair value, but does establish a fair value hierarchy that prioritizes the inputs used in applying the various techniques. Inputs broadly refer to the assumptions that market participants use to make pricing decisions, including assumptions about risk. Level 1 inputs are given the highest priority in the hierarchy while Level 3 inputs are given the lowest priority. Assets and liabilities carried at fair value are classified in one of the following three categories based on the nature of the inputs to the valuation technique used: • Level 1 – Observable inputs that reflect unadjusted quoted prices for identical assets or liabilities in active markets as of the reporting date. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis. • Level 2 – Observable market-based inputs or unobservable inputs that are corroborated by market data. • Level 3 – Unobservable inputs that are not corroborated by market data. These inputs reflect management’s best estimate of fair value using its own assumptions about the assumptions a market participant would use in pricing the asset or liability. Summary of significant valuation techniques for assets measured at fair value on a recurring basis Level 1 Common stock: Comprise actively traded, exchange-listed U.S. and international equity securities. Valuation is based on unadjusted quoted prices for identical assets in active markets that the Company can access. Mutual funds: Comprise actively traded funds. Valuation is based on daily quoted net asset values for identical assets in active markets that the Company can access. Level 2 U.S. government obligations and agencies: Comprise U.S. Treasury Bills or Notes or U.S. Treasury Inflation Protected Securities. The primary inputs to the valuation include quoted prices for identical assets in inactive markets or similar assets in active or inactive markets, contractual cash flows, benchmark yields and credit spreads. Corporate bonds: Comprise investment-grade fixed income securities. The primary inputs to the valuation include quoted prices for identical assets in inactive markets or similar assets in active or inactive markets, contractual cash flows, benchmark yields and credit spreads. Mortgage-backed and asset-backed securities: Comprise securities that are collateralized by mortgage obligations and other assets. The primary inputs to the valuation include quoted prices for identical assets in inactive markets or similar assets in active or inactive markets, contractual cash flows, benchmark yields, collateral performance and credit spreads. Municipal bonds: Comprise fixed income securities issued by a state, municipality or county. The primary inputs to the valuation include quoted prices for identical assets in inactive markets or similar assets in active or inactive markets, contractual cash flows, benchmark yields and credit spreads. Redeemable preferred stock: Comprise preferred stock securities that are redeemable. The primary inputs to the valuation include quoted prices for identical or similar assets in markets that are not active. Other: Comprise investment securities subject to re-measurement with original maturities beyond one year. The primary inputs to the valuation include quoted prices for identical or similar assets in markets that are not active. Short-term investments: Comprise investment securities subject to 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 U.S. GAAP, assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement requires judgment, and may affect the placement of the asset or liability within the fair value hierarchy levels. The following tables set forth by level within the fair value hierarchy the Company’s assets that were measured at fair value on a recurring basis as of the dates presented (in thousands): Fair Value Measurements As of December 31, 2017 Level 1 Level 2 Level 3 Total Fixed maturities: U.S. government obligations and agencies $ — $ 59,604 $ — $ 59,604 Corporate bonds — 227,504 — 227,504 Mortgage-backed and asset-backed securities — 219,452 — 219,452 Municipal bonds — 120,295 — 120,295 Redeemable preferred stock — 12,479 — 12,479 Equity securities: Common stock 18,811 — — 18,811 Mutual funds 43,404 — — 43,404 Short-term investments — 10,000 — 10,000 Total assets accounted for at fair value $ 62,215 $ 649,334 $ — $ 711,549 Fair Value Measurements As of December 31, 2016 Level 1 Level 2 Level 3 Total Fixed maturities: U.S. government obligations and agencies $ — $ 74,267 $ — $ 74,267 Corporate bonds — 191,430 — 191,430 Mortgage-backed and asset-backed securities — 214,776 — 214,776 Municipal bonds — 91,197 — 91,197 Redeemable preferred stock — 12,691 — 12,691 Equity securities: Common stock 93 — — 93 Mutual funds 50,710 — — 50,710 Short-term investments — 5,002 — 5,002 Total assets accounted for at fair value $ 50,803 $ 589,363 $ — $ 640,166 The Company utilizes third-party independent pricing services that provide a price quote for each fixed maturity, equity security and short-term investment. Management reviews the methodology used by the pricing services. If management believes that the price used by the pricing service does not reflect an orderly transaction between participants, management will use an alternative valuation methodology. There were no adjustments made by the Company to the prices obtained from the independent pricing source for any fixed maturities or equity securities included in the tables above. The following table summarizes the carrying value and estimated fair values of the Company’s financial instruments that are not carried at fair value as of the dates presented (in thousands): As of December 31, 2017 2016 (Level 3) (Level 3) Carrying Estimated Carrying Estimated Value Fair Value Value Fair Value Liabilities (debt): Surplus note $ 12,868 $ 11,630 $ 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 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 was not materially different than its carrying value. |
Liability for Unpaid Losses and
Liability for Unpaid Losses and Loss Adjustment Expenses | 12 Months Ended |
Dec. 31, 2017 | |
Insurance Loss Reserves [Abstract] | |
Liability for Unpaid Losses and Loss Adjustment Expenses | NOTE 17 – LIABILITY FOR UNPAID LOSSES AND LOSS ADJUSTMENT EXPENSES Set forth in the following tables is information about unpaid losses and loss adjustment expenses as of December 31, 2017, net of reinsurance and estimated subrogation, as well as cumulative claim counts and the total of incurred-but-not-reported liabilities plus expected development on reported claims included within the liability for unpaid losses and LAE (in thousands). The liability for losses and loss adjustment expenses includes an amount determined from loss reports and individual cases and an amount, based on past experience, for losses incurred but not reported. Such liabilities are necessarily based on estimates and, although management believes that the amount is adequate, the ultimate liability may be in excess of or less than the amounts provided. The methods for making such estimates and for establishing the resulting liability are continually reviewed, and any adjustments are reflected in earnings currently. The reserve for losses and loss adjustment expenses is reported net of receivables for salvage and subrogation of approximately $85 million and $76 million at December 31, 2017 and 2016, respectively. The information about unpaid losses and loss adjustment expenses for the years ended December 31, 2013 to 2015, is presented as supplementary information and is unaudited. Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance As of December 31, 2017 Total of Incurred- but-Not-Reported For the Years Ended December 31, Liabilities Plus Accident Year 2013* 2014* 2015* 2016 2017 Expected Development (Redundancy) on Reported Claims Cumulative Number of Reported Claims 2013 * $ 100,111 $ 96,993 $ 96,012 $ 88,493 $ 91,065 $ (4,704 ) 20,440 2014 * 111,739 118,289 112,251 112,278 (10,886 ) 22,420 2015 * 170,381 187,431 194,600 (15,635 ) 26,703 2016 269,814 286,252 (17,785 ) 39,885 2017 303,944 49,600 93,080 Total $ 988,139 *UNAUDITED Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, Accident Year 2013* 2014* 2015* 2016 2017 2013 * $ 61,117 $ 88,843 $ 93,489 $ 95,059 $ 95,383 2014 * 69,703 112,059 119,798 122,579 2015 * 115,328 191,481 208,592 2016 204,122 297,374 2017 205,200 Total $ 929,128 All outstanding liabilities before 2013, net of reinsurance* (3,469 ) Liabilities for claims and claim adjustment expenses, net of reinsurance $ 55,542 *UNAUDITED Set forth is the following reconciliation of the net incurred and paid claims development tables to the liability for unpaid losses and LAE in the consolidated Balance Sheet as of December 31, 2017 (in thousands): December 31, 2017 Liabilities for unpaid claims and claim adjustment expenses, net of reinsurance $ 55,542 Reinsurance recoverable on unpaid claims 182,405 Unallocated claims adjustment expenses and other 10,478 Total gross liability for unpaid claims and claim adjustment expense $ 248,425 Set forth is the supplementary information about average historical claims duration as of December 31, 2017: Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance Years 1 2 3 4 5 51.0 % 17.7 % 11.2 % 9.1 % 6.6 % Set forth in the following table is the change in liability for unpaid losses and LAE for the periods presented (in thousands): Years Ended December 31, 2017 2016 2015 Balance at beginning of year $ 58,494 $ 98,840 $ 134,353 Less: Reinsurance recoverable (106 ) (13,540 ) (47,350 ) Net balance at beginning of period 58,388 85,300 87,003 Incurred (recovered) related to: Current year 322,929 305,919 188,040 Prior years 27,499 (4,690 ) (301 ) Total incurred 350,428 301,229 187,739 Paid related to: Current year 215,274 229,761 123,952 Prior years 127,522 98,380 65,490 Total paid 342,796 328,141 189,442 Net balance at end of period 66,020 58,388 85,300 Plus: Reinsurance recoverable 182,405 106 13,540 Balance at end of year $ 248,425 $ 58,494 $ 98,840 As a result of changes in estimates of insured events in prior years, the loss and loss adjustment expense increased by $27.5 million in 2017. During 2017 the liability for unpaid losses and loss adjustment expenses increased by $189.9 million from $58.5 million as of December 31, 2016 to $248.4 million as of December 31, 2017. This increase was primarily a result of Hurricane Irma, for which the Company has reinsurance recoverable of $182.4 million. Other factors leading to the increase include the increase in our underlying exposure due to increased writings in Florida and other states, as well as prior year adverse development reserve of $27.5 million, primarily driven by assignment of benefits (“AOB”) related claims within our Florida book, including the increased litigation frequency experienced during 2017 surrounding the AOB issue. Total reserve re-estimates conducted in 2016 and 2015, resulted in favorable development of $4.7 million in 2016, and $0.3 million in 2015. The favorable development in 2016 was principally the result of increases in estimated subrogation recoveries. Basis for estimating liabilities for unpaid claims and claim adjustment expenses The Company establishes a liability to provide for the estimated unpaid portion of the costs of paying losses LAE under insurance policies the Insurance Entities have issued. Predominately all of the Company’s claims relate to the Company’s core product, homeowners insurance and the various policy forms in which it is available. The liability for unpaid losses and LAE consists of the following: • Case reserves, which are the reserves established by the claims examiner on reported claims. • Incurred but not reported (“IBNR”), which are anticipated losses expected to be reported to the company and development of reported claims, including anticipated recoveries from either subrogation or ceded reinsurance. • LAE, which are the estimated expenses associated with the settlement of case reserves and IBNR. Underwriting results are significantly influenced by the Company’s practices in establishing its estimated liability for unpaid losses and LAE. The liability is an estimate of amounts necessary to ultimately settle all current and future claims and LAE on claims occurring during the policy coverage period each year as of the financial statement date. Characteristics of Reserves The liability for unpaid losses and LAE, also known as reserves, are established based on estimates of the ultimate future amounts needed to settle claims, either known or unknown, less losses that have been paid to date. Claims are typically reported promptly with relatively little reporting lag between the date of occurrence and the date the loss is reported. The Company’s claim settlement data suggests that insurance claims have an average settlement time of less than one year. Reserves are estimated for both reported and unreported claims, and include estimates of all expenses associated with processing and settling all incurred claims, including consideration for anticipated subrogation recoveries that will offset future loss payments. The company updates reserve estimates periodically as new information becomes available or as events emerge that may affect the resolution of unsettled claims. Changes in prior year reserve estimates (reserve re-estimates), which may be material, are determined by comparing updated estimates of ultimate losses to prior estimates, and the differences are recorded as losses and LAE in the Consolidated Statements of Income in the period such changes are determined. Estimating the ultimate cost of losses and LAE is an inherently uncertain and complex process involving a high degree of subjective judgment and is subject to the interpretation and usage of numerous uncertain variables as discussed further below. Reserves for losses and LAE are determined in three primary sectors. These sectors are (1) the estimation of reserves for Florida non-catastrophe losses, (2) hurricane losses, and (3) non-Florida non-catastrophe losses and any other losses. Evaluations are performed for gross loss, LAE and subrogation separately, and on a net and direct basis for each sector. The analyses for non-catastrophe losses are further separated into data groupings of like exposure or type of loss. These groups are property damage on homeowner policy forms HO-3 and HO-8 combined, property damage on homeowner policy forms HO-4 and HO-6 combined, property damage on dwelling fire policies, sinkhole claims, and water damage claims. Although these sectors are aggregated into the single tables noted above, analyses are performed in these three sectors, due to the analogous nature of the product and similar claim settlement traits. As claims are reported, the claims department establishes an estimate of the liability for each individual claim called case reserves. For certain liability claims of sufficient size and complexity, the field adjusting staff establishes case reserve estimates of ultimate cost, based on their assessment of facts and circumstances related to each individual claim. Opportunities for subrogation are also identified for further analysis and collection. For other claims which occur in large volumes and settle in a relatively short time frame, it is not practical or efficient to set case reserves for each claim, and an initial case reserve of $2,500 is set for these claims. In the normal course of business, we may also supplement our claims processes by utilizing third party adjusters, appraisers, engineers, inspectors, other professionals and information sources to assess and settle catastrophe and non-catastrophe related claims. The Actuarial Methods used to Develop Reserve Estimates Reserve estimates for both unpaid losses and LAE are derived using several different actuarial estimation methods in order to provide the actuary with multiple predictive viewpoints to consider for each of the sectors discussed above. Each of the methods has merit, because they each provide insight into emerging patterns. These methods are each variations on two primary actuarial techniques: “chain ladder development” techniques and “counts and average” techniques. The “chain ladder development” actuarial technique is an estimation process in which historical payment and reserving patterns are applied to actual paid and/or reported amounts (paid losses, recovered subrogation or LAE plus individual case reserves established by claim adjusters) for an accident period to create an estimate of how losses or recoveries are likely to develop over time. The “counts and average” technique includes an evaluation of historical and projected costs per claim, and late-reported claim counts, for open claims by accident period. An accident period refers to classification of claims based on the date in which the claims occurred, regardless of the date they were reported to the company. These analyses are used to prepare estimates of required reserves for payments or recoveries to be made in the future. Transactions are organized into half-year accident periods for purposes of the reserve estimates. Key data elements used to determine our reserve estimates include historical claim counts, loss and LAE payments, subrogation received, case reserves, earned policy exposures, and the related development factors applicable to this data. The first method for estimating unpaid amounts for each sector is a chain ladder method called the paid development method. This method is based upon the assumption that the relative change in a given accident period’s paid losses from one evaluation point to the next is similar to the relative change in prior periods’ paid losses at similar evaluation points. In utilizing this method, actual 6-month historical loss activity is evaluated. Successive periods can be arranged to form a triangle of data. Paid-to-Paid (“PTP”) development factors are calculated to measure the change in cumulative paid losses, LAE, and subrogation recoveries, from one evaluation point to the next. These historical PTP factors form the basis for selecting the PTP factors used in projecting the current valuation of losses to an ultimate basis. In addition, a tail factor is selected to account for loss development beyond the observed experience. The tail factor is based on trends shown in the data and consideration of industry loss development benchmarks. Utilization of a paid development method has the advantage of avoiding potential distortions in the data due to changes in case reserving methodology. This method’s implicit assumption is that the rate of payment of claims has been relatively consistent over time, and that there have been no material changes in the rate at which claims have been reported or settled. In instances where changes in settlement rates are detected, the PTP factors are adjusted accordingly, utilizing appropriate actuarial techniques. These adjusted techniques each produce additional development method estimates for consideration. A second method is the reported development method. This method is similar to the paid development method; however, case reserves are considered in the analysis. Successive periods of reported loss estimates (including paid loss, subrogation recoveries, paid LAE and held case reserves) are organized similar to the paid development method in order to evaluate and select Report-to-Report (“RTR”) development factors. This method has the advantage of recognizing the information provided by current case reserves. Its implicit assumption is that the relative adequacy of case reserves is consistent over time, and that there have been no material changes in the rate at which claims have been reported or settled. In cases where significant reserve strengthening or other changes have occurred, RTR factors are adjusted accordingly, utilizing appropriate actuarial techniques. A third method is the Bornhuetter-Ferguson (“B-F”) method, which is also utilized for estimating unpaid loss and LAE amounts. Each B-F technique is a blend of chain ladder development methods and an expected loss method, whereby the total reserve estimate equals the unpaid portion of a predetermined expected unpaid ultimate loss projection. The unpaid portion is determined based on assumptions underlying the development methods. As an experience year matures and expected unreported (or unpaid) losses become smaller, the initial expected loss assumption becomes gradually less important. This has the advantage of stability, but it is less responsive to actual results that have emerged. Two parameters are needed in each application of the B-F method: an initial assumption of expected losses and the expected reporting or payment pattern. Initial expected losses for each accident period other than the current year is determined using the estimated ultimate loss ratio from the prior analysis. Initial expected losses for the current year’s accident periods are determined based on trends in historical loss ratios, rate changes, and underlying loss trends. The expected reporting pattern is based on the reported or paid loss development method described above. This method is often used in situations where the reported loss experience is relatively immature or lacks sufficient credibility for the application of other methods. A fourth method, called the counts and averages method, is utilized for estimates of loss, subrogation and LAE for each Florida sector. In this method, an estimate of unpaid losses or expenses is determined by separately projecting ultimate reported claim counts and ultimate claim severities (cost or recoveries per claim) on open and unreported claims for each accident period. Typically, chain ladder development methods are used to project ultimate claim counts and claim severities based on historical data using the same methodology described in the paid and reported development methods above. Estimated ultimate losses are then calculated as the product of the two items. This method is intended to avoid data distortions that may exist with the other methods for the most recent years as a result of changes in case reserve levels, settlement rates and claims handling fees. In addition, it may provide insight into the drivers of loss experience. For example, this method is utilized for sinkhole losses due to unique settlement patterns that have emerged since the passage of legislation that codified claim settlement practices with respect to sinkhole related claims and subsequent policy form changes we implemented. The method is also utilized to evaluate segments impacted by the implementation of our Fast Track Initiative, which is an initiative to settle claims on an accelerated basis. These claims are expected to be reported and settled at different rates and ultimate values than historically observed, requiring a departure from traditional development methodologies. The implicit assumption of these techniques is that the selected factors and averages combine to form development patterns or severity trends that are predictive of future loss development of incurred claims. In selecting relevant parameters utilized in each estimation method, due consideration is given to how the patterns of development change from one year to the next over the course of several consecutive years of recent history. Furthermore, the effects of inflation and other anticipated trends are considered in the reserving process in order to generate selections that include adequate provisions to estimate the cost of claims that settle in the future. Finally, in addition to paid loss, reported loss, subrogation recoveries, and LAE development triangles, various diagnostic triangles, such as triangles showing historical patterns in the ratio of paid-to-reported losses and closed-to-reported claim counts are prepared. These diagnostic triangles are utilized in order to monitor the stability of various determinants of loss development, such as consistency in claims settlement and case reserving. Estimates of unpaid losses for hurricane experience are developed using a combination of company-specific and industry patterns, due to the relatively infrequent nature of storms and the high severity typically associated with them. Development patterns and other benchmarks are based on consideration of all reliable information, such as historical events with similar landfall statistics, the range of estimates developed from industry catastrophe models, and claim reporting and handling statistics from our field units. It is common for the company to update its projection of unpaid losses and LAE for a significant hurricane event on a monthly, or even weekly basis, for the first 6-months following an event. Estimation methods described above each produce estimates of ultimate losses and LAE. Based on the results of these methods, a single estimate (commonly referred to as an actuarial point/central estimate) of the ultimate loss and LAE is selected accordingly for each accident-year claim grouping. Estimated IBNR reserves are determined by subtracting reported losses from the selected ultimate loss, and the paid LAE from the ultimate LAE. The estimated loss IBNR reserves are added to case reserves to determine total estimated unpaid losses. Note that estimated IBNR reserves can be negative for an individual accident-year claim grouping if the selected ultimate loss includes a provision for anticipated subrogation, or if there is a possibility that case reserves are overstated. No case reserves are carried for LAE, therefore the estimated LAE IBNR reserves equal the total estimated unpaid LAE. For each sector, the reserving methods are carried out on both a net and direct basis in order to estimate liabilities accordingly. When selecting a single actuarial point/central estimate on a net basis, careful consideration is given for the reinsurance arrangements that were in place during each accident year, exposure period and segment being reviewed. How Reserve Estimates are Established and Updated Reserve estimates are developed for both open claims and unreported claims. The actuarial methods described above are used to derive claim settlement patterns by determining development factors to be applied to specific data elements. Development factors are calculated for data elements such as claim counts reported and settled, paid losses and paid losses combined with case reserves, loss expense payments, and subrogation recoveries. Historical development patterns for these data elements are used as the assumptions to calculate reserve estimates. Often, different estimates are prepared for each detailed component, incorporating alternative analyses of changing claim settlement patterns and other influences on losses, from which a best estimate is selected for each component, occasionally incorporating additional analyses and actuarial judgment as described above. These estimates are not based on a single set of assumptions. Based on a review of these estimates, the best estimate of required reserves is recorded for each accident year and the required reserves are summed to create the reserve balance carried on the Consolidated Balance Sheets. Reserves are re-estimated periodically by combining historical payment and reserving patterns with current actual results. When actual development of claims reported, paid losses or case reserve changes are different than the historical development pattern used in a prior period reserve estimate, and as actuarial studies validate new trends based on indications of updated development factor calculations, new ultimate loss and LAE predictions are determined. This process incorporates the historic and latest trends, and other underlying changes in the data elements used to calculate reserve estimates. The difference between indicated reserves based on new reserve estimates and the previously recorded estimate of reserves is the amount of reserve re-estimates. The resulting increase or decrease in the reserve re-estimates is recorded and included in “Losses and loss adjustment expenses” in the Consolidated Statements of Income. Claim frequency The methodology used to determine claim counts is based first around the event and then based on coverage. One event could have one or more claims based on the policy coverage, for example an event could have a claim for the first party coverage and a claim for third party liability regardless of the number of third party claimants. If multiple third-party liability claims are reported together they would be counted as one claim. |
Quarterly Results for 2017 and
Quarterly Results for 2017 and 2016 | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Results for 2017 and 2016 | NOTE 18 – QUARTERLY RESULTS FOR 2017 AND 2016 (UNAUDITED) The following table provides a summary of quarterly results for the periods presented (in thousands except per share data): First Second Third Fourth Quarter Quarter Quarter Quarter For the Year Ended December 31, 2017 Premiums earned, net $ 161,559 $ 169,009 $ 174,517 $ 183,708 Investment income 2,704 3,223 3,085 4,448 Total revenues 174,874 185,487 190,243 201,312 Total expenses 127,503 137,564 173,644 142,721 Net income 31,199 29,376 9,964 36,396 Basic earnings per share $ 0.89 $ 0.84 $ 0.29 $ 1.05 Diluted earnings per share $ 0.86 $ 0.82 $ 0.28 $ 1.03 For the Year Ended December 31, 2016 Premiums earned, net $ 152,448 $ 156,461 $ 159,534 $ 163,973 Investment income 1,605 2,142 2,304 3,489 Total revenues 164,446 169,802 172,436 178,605 Total expenses 123,347 114,908 128,273 155,878 Net income 25,226 33,647 26,882 13,655 Basic earnings per share $ 0.73 $ 0.96 $ 0.77 $ 0.39 Diluted earnings per share $ 0.71 $ 0.94 $ 0.75 $ 0.38 Total revenues in the fourth quarter of 2017 exceeded 2016 principally driven by increased policy and premium counts year over year driven by organic growth in, and outside of Florida. The fourth quarter included a benefit within loss and LAE from Hurricane Irma due to reinsurance recoveries recognized during the quarter from our Other States Reinsurance Program, as well as additional income generated by our service company subsidiaries following Hurricane Irma. These benefits were largely offset by unfavorable reserve development for both current and prior accident years. The fourth quarter of 2016 was impacted by severe weather event losses of $26.6 million as a result of Hurricane Matthew. Net income for the fourth quarter of 2017 increased 166.5%, or $22.7 million, to $36.4 million, compared to net income of $13.7 million in the fourth quarter of 2016. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | NOTE 19 – SUBSEQUENT EVENTS The Company performed an evaluation of subsequent events through the date the financial statements were issued and determined there were no recognized or unrecognized subsequent events that would require an adjustment or additional disclosure in the consolidated financial statements as of December 31, 2017. On January 22, 2018, the Company declared a dividend of $0.14 per share on its outstanding common stock payable on March 12, 2018, to shareholders of record on February 28, 2018. |
Schedule II - Condensed Financi
Schedule II - Condensed Financial Information of Registrant | 12 Months Ended |
Dec. 31, 2017 | |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |
Schedule II - Condensed Financial Information of Registrant | SCHEDULE II – CONDENSED FINANCIAL INFORMATION OF REGISTRANT Universal Insurance Holdings, Inc. had no long-term obligations, guarantees or material contingencies as of December 31, 2017 and 2016. The following summarizes the major categories of the parent company’s financial statements (in thousands, except per share data): CONDENSED BALANCE SHEETS As of December 31, 2017 2016 ASSETS Cash and cash equivalents $ 67,509 $ 3,951 Investments in subsidiaries and undistributed earnings 359,847 362,759 Fixed maturities, at fair value 3,111 3,003 Equity maturities, at fair value 5,238 625 Income taxes recoverable 9,472 3,262 Deferred income taxes 9,286 10,674 Other assets 431 1,003 Total assets $ 454,894 $ 385,277 LIABILITIES AND STOCKHOLDERS' EQUITY LIABILITIES: Accounts payable $ 4 $ 50 Dividends payable 40 — Other accrued expenses 14,862 14,037 Total liabilities 14,906 14,087 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 458 453 Authorized shares - 55,000 Issued shares - 45,778 and 45,324 Outstanding shares - 34,735 and 35,052 Treasury shares, at cost - 11,043 and 10,272 (105,123 ) (86,982 ) Additional paid-in capital 86,186 82,263 Accumulated other comprehensive income (loss), net of taxes (6,281 ) (6,408 ) Retained earnings 464,748 381,864 Total stockholders' equity 439,988 371,190 Total liabilities and stockholders' equity $ 454,894 $ 385,277 See accompanying notes to condensed financial statements CONDENSED STATEMENTS OF INCOME For the Years Ended December 31, 2017 2016 2015 REVENUES Net investment income (expense) $ 259 $ (35 ) $ 22 Net realized gains (losses) on investments 255 667 66 Management fee 151 138 140 Other revenue 12 80 — Total revenues 677 850 228 OPERATING COSTS AND EXPENSES General and administrative expenses 30,819 35,342 48,056 Total operating cost and expenses 30,819 35,342 48,056 LOSS BEFORE INCOME TAXES AND EQUITY IN NET EARNINGS OF SUBSIDIARIES (30,142 ) (34,492 ) (47,828 ) Benefit from income taxes (18,296 ) (12,055 ) (17,495 ) LOSS BEFORE EQUITY IN NET EARNINGS OF SUBSIDIARIES (11,846 ) (22,437 ) (30,333 ) Equity in net income of subsidiaries 118,781 121,847 136,817 CONSOLIDATED NET INCOME $ 106,935 $ 99,410 $ 106,484 See accompanying notes to condensed financial statements CONDENSED STATEMENTS OF CASH FLOWS For the Years Ended December 31, 2017 2016 2015 Cash flows from operating activities Net Income $ 106,935 $ 99,410 $ 106,484 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Equity in net income of subsidiaries (118,781 ) (121,847 ) (136,817 ) Distribution of income from subsidiaries 122,156 46,914 58,224 Depreciation 3 2 4 Amortization of share-based compensation 10,515 10,288 17,386 Amortization of original issue discount on debt 10 149 521 Accretion of deferred credit — (149 ) (521 ) Net realized (gains) losses on investments (255 ) (667 ) (66 ) Deferred income taxes 1,309 4,724 (693 ) Excess tax benefits from share-based compensation (5,793 ) 1,154 (5,310 ) Issuance of common stock 634 — — Net changes in assets and liabilities relating to operating activities: Income taxes recoverable (417 ) 1,004 255 Income taxes payable — — 3,510 Other operating assets and liabilities 574 (596 ) (1,338 ) Other liabilities and accrued expenses 778 (2,896 ) — Net cash provided by (used in) operating activities 117,668 37,490 41,639 Cash flows from investing activities: Purchases of equity securities, available for sale (4,990 ) (2,037 ) (1,442 ) Purchase of fixed maturities, available for sale (3,000 ) (3,000 ) — Proceeds from sales of equity securities, available for sale 3,255 2,456 1,481 Proceeds from sales of fixed maturities, available for sale — 3,229 — Net cash provided by (used in) investing activities (4,735 ) 648 39 Cash flows from financing activities: Repayment of debt — — (7,000 ) Preferred stock dividend (10 ) (10 ) (10 ) Common stock dividend (24,001 ) (24,192 ) (22,287 ) Issuance of common stock for stock option exercises — 119 511 Purchase of treasury stock (18,141 ) (8,510 ) (18,649 ) Sale of treasury stock — 2,965 — Purchase of preferred stock — — (256 ) Payments related to tax withholding for share-based compensation (7,223 ) (5,451 ) (12,141 ) Excess tax benefits (shortfall) from share-based compensation — (1,154 ) 5,310 Net cash provided by (used in) financing activities (49,375 ) (36,233 ) (54,522 ) Net increase (decrease) in cash and cash equivalents 63,558 1,905 (12,844 ) Cash and cash equivalents at beginning of period 3,951 2,046 14,890 Cash and cash equivalents at end of period $ 67,509 $ 3,951 $ 2,046 See accompanying notes to condensed financial statements NOTE 1 – GENERAL The financial statements of the Registrant should be read in conjunction with the consolidated financial statements in “Item 8.” Nature of Operations and Basis of Presentation Universal Insurance Holdings, Inc. (the “Company”) is a Delaware corporation incorporated in 1990. The Company is an insurance holding company whose wholly-owned subsidiaries perform all aspects of insurance underwriting, distribution and claims. Through its wholly-owned subsidiaries, including Universal Property & Casualty Insurance Company (“UPCIC”) and American Platinum Property and Casualty Insurance Company (“APPCIC”), the Company is principally engaged in the property and casualty insurance business offered primarily through a network of independent agents. Risk from catastrophic losses is managed through the use of reinsurance agreements. The Company generates revenues from earnings on investments and management fees. The Company also receives distributions of earnings from its insurance and non-insurance subsidiaries. Certain amounts in the prior periods’ condensed financial statements have been reclassified in order to conform to current period presentation. Such reclassifications had no effect on net income or stockholders’ equity. Dividends received from Subsidiaries During the year ended December 31, 2017, UPCIC paid dividends of $30.0 million to Universal Insurance Holdings, Inc. No dividends were paid from APPCIC to Universal Insurance Holdings, Inc. for the year ended December 31, 2017. There were no dividends paid by UPCIC and APPCIC to Universal Insurance Holdings, Inc. during the years ended December 31, 2016 and 2015. Capitalization of Subsidiaries During the year ended December 31, 2016, Universal Insurance Holdings, Inc. made a capital contribution of $2.0 million to APPCIC, in conjunction with APPCIC’s plan to begin writing commercial residential products in Florida. There were no capital contributions by Universal Insurance Holdings, Inc. to APPCIC during the years ended December 31, 2017 and 2015. NOTE 2 – SUBSEQUENT EVENTS The Company performed an evaluation of subsequent events through the date the financial statements were issued and determined there were no recognized or unrecognized subsequent events that would require an adjustment or additional disclosure in the consolidated financial statements as of December 31, 2017. On January 22, 2018, the Company declared a dividend of $0.14 per share on its outstanding common stock payable on March 12, 2018, to shareholders of record on February 28, 2018. |
Schedule V - Valuation Allowanc
Schedule V - Valuation Allowances and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2017 | |
Valuation And Qualifying Accounts [Abstract] | |
Schedule V - Valuation Allowances and Qualifying Accounts | SCHEDULE V – VALUATION ALLOWANCES AND QUALIFYING ACCOUNTS The following table summarizes activity in the Company’s allowance for doubtful accounts for the periods presented (in thousands): Additions Charges to Beginning Charges to Other Ending Balance Earnings Accounts Deductions Balance Description Year Ended December 31, 2017: Allowance for doubtful accounts $ 527 505 — 352 $ 680 Year Ended December 31, 2016: Allowance for doubtful accounts $ 344 397 — 214 $ 527 Year Ended December 31, 2015: Allowance for doubtful accounts $ 357 395 — 408 $ 344 |
Schedule VI - Supplemental Info
Schedule VI - Supplemental Information Concerning Consolidated Property and Casualty Insurance Operations | 12 Months Ended |
Dec. 31, 2017 | |
Supplemental Information For Property Casualty Insurance Underwriters [Abstract] | |
Schedule VI - Supplemental Information Concerning Consolidated Property and Casualty Insurance Operations | SCHEDULE VI – SUPPLEMENTAL INFORMATION CONCERNING CONSOLIDATED PROPERTY AND CASUALTY INSURANCE OPERATIONS The following table provides certain information related to the Company’s property and casualty operations as of, and for the periods presented (in thousands): As of December 31, For the Year Ended December 31, Reserves Incurred Incurred for Unpaid Loss and Loss and Net Losses and LAE Current LAE Prior Paid Losses Investment LAE Year Years and LAE Income 2017 $ 248,425 $ 322,929 $ 27,499 $ 342,796 $ 13,460 2016 $ 58,494 $ 305,919 $ (4,690 ) $ 328,141 $ 9,540 2015 $ 98,840 $ 188,040 $ (301 ) $ 189,442 $ 5,155 As of December 31, For the Year Ended December 31, Deferred Policy Net Net Acquisition Amortization Premiums Premiums Unearned Cost ("DPAC"), Net of DPAC, Net Written Earned Premiums 2017 $ 73,059 $ (136,702 ) $ 737,060 $ 688,793 $ 532,444 2016 $ 64,912 $ (125,350 ) $ 656,094 $ 632,416 $ 475,756 2015 $ 60,019 $ (87,871 ) $ 626,448 $ 503,999 $ 442,366 |
Nature of Operations and Basi31
Nature of Operations and Basis of Presentation (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Nature of Operations, Basis of Presentation and Consolidation | Nature of Operations, Basis of Presentation and Consolidation Universal Insurance Holdings, Inc. (“UVE”) is a Delaware corporation incorporated in 1990. UVE with its wholly-owned subsidiaries (the “Company”), is a vertically integrated insurance holding company performing all aspects of insurance underwriting, distribution and claims. Through its wholly-owned insurance company 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 its network of independent agents. Risk from catastrophic losses is managed through the use of reinsurance agreements. The Company’s primary product is residential homeowners’ insurance currently offered in sixteen states as of December 31, 2017, including Florida, which comprises the vast majority of the Company’s in-force policies. See “— Note 5 (Insurance Operations) The Company generates revenues primarily from the collection of premiums and invests funds in excess of those retained for claims-paying obligations and insurance operations. Other significant sources of revenue include brokerage commissions collected from reinsurers on certain reinsurance programs placed by the Insurance Entities, policy fees collected from policyholders by our wholly-owned managing general agency subsidiary and payment plan fees charged to policyholders who choose to pay their premiums in installments. The consolidated financial statements have been prepared in conformity with generally accepted accounting principles in the United States of America (“U.S. GAAP”). The consolidated financial statements include the accounts of UVE and its wholly-owned subsidiaries. All material intercompany balances and transactions have been eliminated in consolidation. To conform to current period presentation, certain amounts in the prior periods’ consolidated financial statements and notes have been reclassified. Such reclassifications were of an immaterial amount and had no effect on net income or stockholders’ equity. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. The Company’s primary use of estimates are in the recognition of liabilities for unpaid losses, loss adjustment expenses, and subrogation recoveries, and reinsurance recoveries. Actual results could differ from those estimates. |
Cash and Cash Equivalents | Cash and Cash Equivalents. The Company includes in cash equivalents all short-term, highly liquid investments that are readily convertible to known amounts of cash and have an original maturity of three months or less. These amounts are carried at cost, which approximates fair value. The Company excludes any net negative cash balances from cash and cash equivalents that the Company has with any single financial institution. These amounts represent outstanding checks or drafts not yet presented to the financial institution and are reclassified to liabilities and presented as book overdraft in the Company’s Consolidated Balance Sheets. |
Restricted Cash and Cash Equivalents | Restricted Cash and Cash Equivalents. The Company classifies amounts of cash and cash equivalents that are restricted in terms of their use and withdrawal separately on the face the Consolidated Balance Sheets. See “— ,” for a discussion of the nature of the restrictions. |
Investment Securities, Available for Sale | Investment Securities, Available for Sale . All investment securities are classified as available for sale and consist of fixed maturities, equity securities and short-term investments with maturities of greater than three months. Investment securities available for sale are recorded at fair value on the consolidated balance sheet. Unrealized gains and losses on securities available for sale are excluded from earnings and reported as a component of other comprehensive income, net of related deferred taxes until reclassified to earnings upon the consummation of sales transaction with an unrelated third party or when the decline in fair value is deemed other than temporary. Gains and losses realized on the disposition of investment securities available for sale are determined on the FIFO basis and credited or charged to income. Premium and discount on investment securities are amortized and accreted using the interest method and charged or credited to investment income. |
Other Than Temporary Impairment | Other Than Temporary Impairment. The assessment of whether the impairment of a security’s fair value is other than temporary is performed using a portfolio review as well as a case-by-case review considering a wide range of factors. There are a number of assumptions and estimates inherent in evaluating impairments and determining if they are other than temporary, including: 1) the Company’s ability and intent to hold the investment for a period of time sufficient to allow for an anticipated recovery in value; 2) the expected recoverability of principal and interest; 3) the extent and length of time to which the fair value has been less than amortized cost for fixed maturity securities or cost for equity securities and short-term investments referred to as severity and duration; 4) the financial condition, near-term and long-term prospects of the issue or issuer, including relevant industry conditions and trends, and implications of rating agency actions and offering prices referred to as credit quality; and 5) the specific reasons that a security is in a significant unrealized loss position, including market conditions which could affect liquidity. Additionally, once assumptions and estimates are made, any number of changes in facts and circumstances could cause the Company to subsequently determine that an impairment is other than temporary, including: 1) general economic conditions that are worse than previously forecasted or that have a greater adverse effect on a particular issuer or industry sector than originally estimated; 2) changes in the facts and circumstances related to a particular issue or issuer’s ability to meet all of its contractual obligations; and 3) changes in facts and circumstances obtained that causes a change in our ability or intent to hold a security to maturity or until it recovers in value. Management’s intent and ability to hold securities is a determination that is made at each respective balance sheet date giving consideration to factors known to management for each individual issuer of securities such as credit quality and other publicly available information. |
Investment Real Estate | Investment Real Estate. Investment real estate is recorded at cost less accumulated depreciation. Depreciation is calculated on a straight-line basis over the estimated useful life of the assets. Real estate taxes, interest and other costs incurred during development and construction of properties are capitalized. Income and expenses from income producing real estate are reported under net investment income. Investment real estate is evaluated for impairment when events or circumstances indicate the carrying value may not be recoverable. |
Premiums Receivable | Premiums Receivable. Generally, premiums are collected prior to or during the policy period as permitted under the Insurance Entities payment plans. Credit risk is minimized through the effective administration of policy payment plans whereby rules governing policy cancellation minimize exposure to credit risk. The Company performs a policy level evaluation to determine the extent the premiums receivable balance exceeds the unearned premiums balance. The Company then ages this exposure to establish an allowance for doubtful accounts based on prior credit experience. As of December 31, 2017 and 2016, the Company recorded allowances for doubtful accounts in the amounts of $680 thousand and $527 thousand, respectively. |
Property and Equipment | Property and Equipment. Property and equipment is recorded at cost less accumulated depreciation and are depreciated on the straight-line basis over the estimated useful life of the assets. Estimated useful life of all property and equipment ranges from three for equipment to twenty-seven-and-one-half years for buildings and improvements. Expenditures for improvements are capitalized and depreciated over the remaining useful life of the asset. Routine repairs and maintenance are expensed as incurred. Website development costs are capitalized and amortized over three years. Software is capitalized and amortized over three years. The Company reviews its property and equipment for impairment annually and/or whenever changes in circumstances indicate that the carrying amount may not be recoverable. |
Recognition of Premium Revenues | Recognition of Premium Revenues. Direct and ceded premiums are recognized as revenue on a pro rata basis over the policy term or over the term of the reinsurance agreement. The portion of direct premiums that will be earned in the future is deferred and reported as unearned premiums. The portion of ceded premiums that will be earned in the future is deferred and reported as prepaid reinsurance premiums (ceded unearned premiums). |
Recognition of Commission Revenue | Recognition of Commission Revenue . Commission revenue generated from reinsurance brokerage commission earned on ceded premium by the Insurance Entities is recognized over the term of the reinsurance agreements. |
Policy Fees | Policy Fees. Policy fees, which represents fees paid by policyholders to the Managing General Agent (MGA)’s on all new and renewal insurance policies, are recognized as income upon policy inception. |
Other Revenue | Other Revenue. The Company offers its policyholders the option of paying their policy premiums in full at inception or in installments. The Company charges fees to its policyholders that elect to pay their premium in installments and records such fees as revenue as the Company bills the fees to the policyholder. |
Deferred Policy Acquisition Costs | Deferred Policy Acquisition Costs . The Company defers direct commissions and premium taxes relating to the successful acquisition or renewal of insurance policies and defers the costs until recognized as expense over the terms of the policies to which they are related. Commissions on ceded premiums are deferred and amortized over the effective period of the related reinsurance policies. Deferred policy acquisition costs and deferred ceding commissions are netted for balance sheet presentation purposes and are recorded at their estimated realizable value. |
Intangible Assets | Intangible Assets. Goodwill and indefinite-lived intangible assets arising from the acquisition of a business is initially measured at cost and not subject to amortization. We assess goodwill and indefinite-lived intangible assets for potential impairments at the end of each fiscal year, or during the year if an event or other circumstance indicates that we may not be able to recover the carrying amount of the asset. Goodwill is included under Other Assets in the Consolidated Balance Sheets. |
Insurance Liabilities | Insurance Liabilities . Unpaid losses and loss adjustment expenses (“LAE”) are provided for as claims are incurred. The provision for unpaid losses and loss adjustment expenses includes: (1) the accumulation of individual case estimates for claims and claim adjustment expenses reported prior to the close of the accounting period; (2) estimates for unreported claims based on industry data; and (3) estimates of expenses for investigating and adjusting claims based on the experience of the Company and the industry. The Company estimates and accrues its right to subrogate reported or estimated claims against other parties. Subrogated claims are recorded at amounts estimated to be received from the subrogated parties, net of related costs and netted against unpaid losses and LAE. Inherent in the estimates of ultimate claims and subrogation are expected trends in claim severity, frequency and other factors that may vary as claims are settled. The amount of uncertainty in the estimates is significantly affected by such factors as the amount of claims experience relative to the development period, knowledge of the actual facts and circumstances and the amount of insurance risk retained. In addition, the Company’s policyholders are subject to adverse weather conditions, such as hurricanes, tornados, ice storms and tropical storms. The actuarial methods for making estimates for unpaid losses, LAE and subrogation recoveries and for establishing the resulting net liability are periodically reviewed, and any adjustments are reflected in current earnings. |
Provision for Premium Deficiency | Provision for Premium Deficiency . It is the Company’s policy to evaluate and recognize losses on insurance contracts when estimated future claims, deferred policy acquisition costs and maintenance costs under a group of existing contracts will exceed anticipated future premiums. No accruals for premium deficiency were considered necessary as of December 31, 2017 and 2016. |
Reinsurance | Reinsurance . Ceded written premium is recorded upon the effective date of the reinsurance contracts and earned over the contract period. Amounts recoverable from reinsurers are estimated in a manner consistent with the provisions of the reinsurance agreements and consistent with the establishment of the gross liability to the Company. Allowances are established for amounts deemed uncollectible if any. |
Income Taxes | Income Taxes . The Company accounts for income taxes under the asset and liability method, that recognizes the amount of income taxes payable or refundable for the current year and recognizes deferred tax assets and liabilities based on the tax rates expected to be in effect during the periods in which the temporary differences reverse. Temporary differences arise when income or expenses are recognized in different periods on the consolidated financial statements than on the tax returns. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Deferred tax assets are reduced by a valuation allowance if it is more likely than not that all, or some portion, of the benefits related to deferred tax assets will not be realized. Income taxes includes both, estimated federal and state income taxes. |
Income (Loss) Per Share of Common Stock | Income (Loss) Per Share of Common Stock . Basic earnings per share excludes dilution and is computed by dividing the Company’s net income (loss) available to common stockholders, by the weighted-average number of shares of Common Stock outstanding during the period. Diluted earnings per share is computed by dividing the Company’s net income (loss) by the weighted average number of shares of Common Stock outstanding during the period plus the impact of all potentially dilutive common shares, primarily preferred stock, unvested shares and options. The dilutive impact of stock options and unvested shares is determined by applying the treasury stock method and the dilutive impact of the preferred stock is determined by applying the “if converted” method. |
Fair Value Measurements | Fair Value Measurements . The Company’s policy is to record transfers of assets and liabilities, if any, between Level 1 and Level 2 at their fair values as of the end of each reporting period, consistent with the date of the determination of fair value. There were no transfers during the years ended December 31, 2017 or 2016. |
Share-based Compensation | Share-based Compensation. The Company accounts for share-based compensation based on the estimated grant-date fair value. The Company recognizes these compensation costs in general and administrative expenses and generally amortizes them on a straight-line basis over the requisite service period of the award, which is the vesting term. Individual tranches of performance-based awards are amortized separately since the vesting of each tranche is subject to independent annual measures. The fair value of stock option awards are estimated using the Black-Scholes option pricing model with the grant-date assumptions discussed in “— .” The fair value of the restricted share grants are determined based on the market price on the date of grant. |
Statutory Accounting | Statutory Accounting. UPCIC and APPCIC are highly regulated and prepare and file financial statements in conformity with the statutory accounting practices prescribed or permitted by the Florida Office of Insurance Regulation (the “FLOIR”) and the National Association of Insurance Commissioners (“NAIC”) which differ from U.S. GAAP. The FLOIR requires that insurance companies domiciled in Florida prepare their statutory financial statements in accordance with the Manual (the “Manual”), as modified by the FLOIR. Accordingly, the admitted assets, liabilities and capital and surplus of UPCIC and APPCIC as of December 31, 2017 and 2016 and the results of operations and cash flows, for the years ended December 31, 2017, 2016 and 2015, for their regulatory filings have been prepared in accordance with statutory accounting principles as promulgated by the FLOIR and the NAIC. The statutory accounting principles are more restrictive than U.S. GAAP and are designed primarily to demonstrate the ability to meet obligations to policyholders and claimants. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements In March 2016, the Financial Accounting Standards Board (“FASB”) revised U.S. GAAP with the issuance of Accounting Standard Update (“ASU”) 2016-09, Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 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): December 31, 2017 Cost or Gross Gross Amortized Unrealized Unrealized Cost Gains Losses Fair Value Fixed Maturities: U.S. government obligations and agencies $ 60,481 $ — $ (877 ) $ 59,604 Corporate bonds 228,336 476 (1,308 ) 227,504 Mortgage-backed and asset-backed securities 221,956 19 (2,523 ) 219,452 Municipal bonds 120,883 599 (1,187 ) 120,295 Redeemable preferred stock 12,059 485 (65 ) 12,479 Equity Securities: Common stock 22,584 47 (3,820 ) 18,811 Mutual funds 45,456 179 (2,231 ) 43,404 Short-term investments 10,000 — — 10,000 Total $ 721,755 $ 1,805 $ (12,011 ) $ 711,549 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): December 31, 2017 December 31, 2016 % of Total % of Total Comparable Ratings Fair Value Fair Value Fair Value Fair Value AAA $ 135,237 20.8 % $ 131,260 22.3 % AA 292,496 45.1 % 275,480 46.7 % A 134,505 20.7 % 107,418 18.2 % BBB 80,566 12.4 % 67,263 11.4 % BB and Below 2,919 0.4 % 3,444 0.6 % No Rating Available 3,611 0.6 % 4,498 0.8 % Total $ 649,334 100.0 % $ 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): December 31, 2017 December 31, 2016 Cost or Cost or Amortized Amortized Cost Fair Value Cost Fair Value Mortgage-backed securities: Agency $ 118,014 $ 116,014 $ 110,724 $ 109,022 Non-agency 17,676 17,488 19,408 19,265 Asset-backed securities: Auto loan receivables 35,105 34,962 37,390 37,429 Credit card receivables 38,844 38,719 38,640 38,568 Other receivables 12,317 12,269 10,517 10,492 Total $ 221,956 $ 219,452 $ 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 (in thousands): December 31, 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 7 $ 35,464 $ (301 ) 9 $ 24,140 $ (576 ) Corporate bonds 159 142,208 (792 ) 39 29,796 (516 ) Mortgage-backed and asset-backed securities 83 137,481 (955 ) 37 70,218 (1,568 ) Municipal bonds 36 28,265 (246 ) 30 48,370 (941 ) Redeemable preferred stock 21 2,464 (65 ) — — — Equity securities: Common stock 2 17,846 (3,820 ) — — — Mutual funds 3 25,338 (135 ) 1 9,171 (2,096 ) Total 311 $ 389,066 $ (6,314 ) 116 $ 181,695 $ (5,697 ) 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): December 31, 2017 Cost or Amortized Cost Fair Value Due in one year or less $ 51,846 $ 51,804 Due after one year through five years 235,323 233,849 Due after five years through ten years 56,806 56,677 Due after ten years 75,725 75,073 Mortgage-backed and asset-backed securities 221,956 219,452 Perpetual maturity securities 12,059 12,479 Total $ 653,715 $ 649,334 |
Summary of Securities Available for Sale | The following table provides certain information related to securities available for sale during the periods presented (in thousands): Years Ended December 31, 2017 2016 Proceeds from sales and maturities (fair value) $ 206,010 $ 226,191 Gross realized gains $ 2,873 $ 2,329 Gross realized losses $ (303 ) $ (35 ) |
Investment Income (Expense) Comprised Primarily of Interest and Dividends | The following table presents the components of net investment income, comprised primarily of interest and dividends, for the periods presented (in thousands): Years Ended December 31, 2017 2016 2015 Fixed maturities $ 12,375 $ 9,523 $ 5,642 Equity securities 1,799 1,414 1,143 Short-term investments 22 75 246 Other (1) 1,459 734 409 Total investment income 15,655 11,746 7,440 Less: Investment expenses (2) (2,195 ) (2,206 ) (2,285 ) Net investment (expense) income $ 13,460 $ 9,540 $ 5,155 (1) Includes interest earned on cash and cash equivalents and restricted cash and cash equivalents. Also includes investment income earned on real estate investments. (2) Includes bank fees, investment accounting and advisory fees, and expenses associated with real estate investments. |
Schedule of Real Estate Investment | Investment real estate consisted of the following as of the dates presented (in thousands): December 31, 2017 December 31, 2016 Income Producing: Investment real estate $ 6,918 $ 6,918 Less: Accumulated depreciation (460 ) (281 ) 6,458 6,637 Non-Income Producing: Properties under development 12,016 4,798 Investment real estate, net $ 18,474 $ 11,435 |
Reinsurance (Tables)
Reinsurance (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Insurance [Abstract] | |
Summary of Quota-Share Cession Rates by Reinsurance Program | The following table presents quota-share cession rates by reinsurance program and the years they were in effect: Reinsurance Program Cession Rate June 2014 - May 2015 30% June 2015 - May 2016 0% June 2016 - May 2017 0% June 2017 - May 2018 0% |
Current Ratings from Rating Agencies and Unsecured Net Amounts Due from Reinsurers Whose Aggregate Balance Exceeded 3% of Stockholders' Equity | The following table presents ratings from rating agencies and the unsecured amounts due from the Company’s reinsurers whose aggregate balance exceeded 3% of the Company’s stockholders’ equity as of the dates presented (in thousands): Ratings as of December 31, 2017 Standard and Poor's Moody's Due from as of AM Best Rating Investors December 31, Reinsurer Company Services Service, Inc. 2017 2016 Allianz Risk Transfer A+ AA- n/a $ 105,573 $ — Florida Hurricane Catastrophe Fund (1) n/a n/a n/a 52,054 46,364 Renaissance Reinsurance Ltd A+ AA- A1 22,545 — Total (2) $ 180,172 $ 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 Consolidated Statements of Income for the periods presented (in thousands): For the Year Ended December 31, 2017 Losses and Loss Premiums Premiums Adjustment Written Earned Expenses Direct $ 1,055,886 $ 999,198 $ 779,122 Ceded (318,826 ) (310,405 ) (428,694 ) Net $ 737,060 $ 688,793 $ 350,428 For the Year Ended December 31, 2016 Losses and Loss Premiums Premiums Adjustment Written Earned Expenses Direct $ 954,617 $ 921,227 $ 303,036 Ceded (298,523 ) (288,811 ) (1,807 ) Net $ 656,094 $ 632,416 $ 301,229 For the Year Ended December 31, 2015 Losses and Loss Premiums Premiums Adjustment Written Earned Expenses Direct $ 883,409 $ 836,792 $ 214,491 Ceded (256,961 ) (332,793 ) (26,752 ) Net $ 626,448 $ 503,999 $ 187,739 |
Prepaid Reinsurance Premiums (Payable) and Reinsurance Recoverable and Receivable | The following prepaid reinsurance premiums (payable) and reinsurance recoverable and receivable are reflected in the Consolidated Balance Sheets as of the dates presented (in thousands): As of December 31, 2017 2016 Prepaid reinsurance premiums $ 132,806 $ 124,385 Reinsurance recoverable on unpaid losses and LAE $ 182,405 $ 106 Reinsurance recoverable (payable) on paid losses — (1,532 ) Reinsurance receivable, net — 186 Reinsurance recoverable (payable) and receivable $ 182,405 $ (1,240 ) |
Insurance Operations (Tables)
Insurance Operations (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Insurance [Abstract] | |
Beginning and Ending Balances and Changes in DPAC, Net of DRCC | The following table presents the beginning and ending balances and the changes in DPAC, net of DRCC, for the periods presented (in thousands): Years Ended December 31, 2017 2016 2015 DPAC, beginning of year $ 64,912 $ 60,019 $ 54,603 Capitalized Costs 144,849 130,243 116,954 Amortization of DPAC (136,702 ) (125,350 ) (111,538 ) DPAC, end of year $ 73,059 $ 64,912 $ 60,019 DRCC, beginning of year $ — $ — $ 28,943 Ceding Commissions Written — — (5,276 ) Earned Ceding Commissions — — (23,667 ) DRCC, end of year $ — $ — $ — DPAC (DRCC), net, beginning of year $ 64,912 $ 60,019 $ 25,660 Capitalized Costs, net 144,849 130,243 122,230 Amortization of DPAC (DRCC), net (136,702 ) (125,350 ) (87,871 ) DPAC (DRCC), net, end of year $ 73,059 $ 64,912 $ 60,019 |
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): As of December 31, 2017 2016 Ten percent of total liabilities UPCIC $ 72,633 $ 57,560 APPCIC $ 572 $ 464 Statutory capital and surplus UPCIC $ 307,686 $ 313,753 APPCIC $ 16,633 $ 17,280 |
Capital Contributions Made by UVE | Through UVECF, the Insurance Entities’ parent company, UVE made capital contributions for the periods presented (in thousands): Years Ended December 31, 2017 2016* 2015 Capital Contributions $ — $ 2,000 $ — |
Assets Held by Insurance Regulators | The following table represents assets held by insurance regulators as of the dates presented (in thousands): As of December 31, 2017 2016 Restricted cash and cash equivalents $ 2,635 $ 2,635 Investments $ 3,910 $ 3,952 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Property Plant And Equipment [Abstract] | |
Components of Property and Equipment | Property and equipment consisted of the following as of the dates presented (in thousands): As of December 31, 2017 2016 Land $ 4,489 $ 4,489 Building 17,644 17,633 Computers 5,589 5,577 Furniture 1,637 1,381 Automobiles and other vehicles 6,857 5,523 Software 2,646 2,035 Total 38,862 36,638 Less: Accumulated depreciation (10,829 ) (8,527 ) Net of accumulated deprecation 28,033 28,111 Construction in progress 4,833 4,051 Property and equipment, net $ 32,866 $ 32,162 |
Realized Gain (Losses) on the Disposal of Property and Equipment | The following table provides realized gains (losses) on the disposal of property and equipment during the periods presented (in thousands): For the Years Ended December 31, 2017 2016 2015 Realized gain (loss) on disposal $ (35 ) $ (31 ) $ (26 ) |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt | Long-term debt consists of the following as of the dates presented (in thousands): As of December 31, 2017 2016 Surplus note $ 12,868 $ 14,338 Promissory note — 690 Total $ 12,868 $ 15,028 |
Estimate of Principal Payments to Be Made for the Amount Due on the Surplus Note | The following table provides an estimate of principal payments to be made for the amounts due on the surplus note as of December 31, 2017 (in thousands): 2018 $ 1,471 2019 1,471 2020 1,471 2021 1,471 2022 1,471 Thereafter 5,513 Total $ 12,868 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Cumulative Convertible Preferred Stock | The following table provides certain information for the convertible Series A preferred stock as of the dates presented (in thousands, except conversion factor): As of December 31, 2017 2016 Shares issued and outstanding 10 10 Conversion factor 2.50 2.50 Common shares resulting if converted 25 25 |
Activity Relating to Common Shares | The following table summarizes the activity relating to shares of the Company’s Common Stock during the periods presented (in thousands): Issued Treasury Outstanding Shares Shares Shares Balance, as of December 31, 2014 44,769 (9,667 ) 35,102 Shares repurchased — (748 ) (748 ) Options exercised 751 — 751 Restricted stock grant 615 — 615 Shares acquired through cashless exercise (1) — (610 ) (610 ) Shares cancelled (610 ) 610 — Balance, as of December 31, 2015 45,525 (10,415 ) 35,110 Shares repurchased — (441 ) (441 ) Shares reissued — 584 584 Options exercised 124 — 124 Shares acquired through cashless exercise (1) — (325 ) (325 ) Shares cancelled (325 ) 325 — Balance, as of December 31, 2016 45,324 (10,272 ) 35,052 Shares repurchased — (771 ) (771 ) Vesting of performance share units 115 — 115 Shares reissued — — — Options exercised 804 — 804 Common stock issued 26 — 26 Shares acquired through cashless exercise (1) — (491 ) (491 ) Shares cancelled (491 ) 491 — Balance, as of December 31, 2017 45,778 (11,043 ) 34,735 (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 or restricted stock (as defined in “— Note 9 (Share-Based Compensation) |
Summary of Dividends Declared on its Outstanding Shares of Common Stock to its Shareholders | The Company declared dividends on its outstanding shares of common stock to its shareholders of record as follows for the periods presented (in thousands, except per share amounts): For the Years Ended December 31, 2017 2016 2015 Per Share Aggregate Per Share Aggregate Per Share Aggregate Amount Amount Amount Amount Amount Amount First Quarter $ 0.14 $ 4,932 $ 0.14 $ 4,915 $ 0.12 $ 4,237 Second Quarter $ 0.14 $ 4,887 $ 0.14 $ 4,913 $ 0.12 $ 4,283 Third Quarter $ 0.14 $ 4,830 $ 0.14 4,903 $ 0.12 $ 4,275 Fourth Quarter $ 0.27 9,392 $ 0.27 9,461 $ 0.27 $ 9,492 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Certain Information Related to Stock Options and PSUs | The following table provides certain information related to Stock Options and PSUs during the year ended December 31, 2017 (in thousands, except per share data): For the Year Ended December 31, 2017 Stock Options Performance Share Units Weighted Weighted Average Weighted Average Exercise Aggregate Average Number Grant Date Number of Price per Intrinsic Remaining of Share Fair Value Options (2) Share (1) Value Term Units (2) per Share Outstanding as of December 31, 2016 3,214 $ 15.77 173 $ 23.18 Granted 797 27.20 147 27.20 Forfeited — — n/a n/a Exercised (804 ) 6.95 n/a n/a Vested n/a n/a (115 ) 23.18 Expired — — n/a n/a Outstanding as of December 31, 2017 3,207 $ 20.82 $ 20,935 6.18 205 $ 26.07 Exercisable as of December 31, 2017 1,325 $ 18.62 $ 11,570 4.47 (1) Unless otherwise specified, such as in the case of the exercise of Stock Options, the per share prices were determined using the closing price of the Company’s Common Stock as quoted on the exchanges on which the Company was listed. Shares issued upon exercise of options represent original issuances in private transactions pursuant to Section 4(2) of the Securities Act of 1933, (2) All shares outstanding as of December 31, 2017 are expected to vest. n/a Not applicable |
Certain Information Regarding Company's Share-Based Compensation | The following table provides certain information in connection with the Company’s share-based compensation arrangements for the periods presented (in thousands): Years Ended December 31, 2017 2016 2015 Compensation expense: Stock options $ 6,907 $ 3,641 $ 1,389 Restricted stock — 3,433 15,997 Performance share units 3,608 3,214 — Total $ 10,515 $ 10,288 $ 17,386 Deferred tax benefits: Stock options $ 2,640 $ 1,392 $ 532 Restricted stock — 1,312 4,816 Performance share units 1,379 1,229 — Total $ 4,019 $ 3,933 $ 5,348 Realized tax benefits: Stock options $ 5,831 $ 724 $ 5,369 Restricted stock — 4,326 — Performance share units 1,264 — — Total $ 7,095 $ 5,050 $ 5,369 Excess tax benefits (shortfall) (1): Stock options $ 5,548 $ 642 $ 5,310 Restricted stock — (1,796 ) — Performance share units 245 — — Total $ 5,793 $ (1,154 ) $ 5,310 Weighted average fair value per option or share: Stock option grants $ 10.18 $ 6.01 $ 6.34 Restricted stock grants $ — $ — $ 26.04 Performance share unit grants $ 27.20 $ 23.18 $ — Intrinsic value of options exercised $ 15,256 $ 1,894 $ 14,734 Fair value of restricted stock vested $ — $ 11,319 $ 17,505 Fair value of performance share units vested $ 3,307 $ — $ — Cash received for strike price and tax withholdings $ — $ 119 $ 519 Shares acquired through cashless exercise (2) 491 325 611 Value of shares acquired through cashless exercise (2) $ 12,808 $ 6,238 $ 15,445 (1) Excess tax benefits (shortfalls) for the years ended December 31, 2016 and 2015 were recognized in additional paid in capital and within income through December 31, 2017. (2) All shares acquired represent shares tendered to cover the strike price for options and tax withholdings on the intrinsic value of options exercised, Restricted Stock vested or PSUs vested. These shares have been canceled by the Company. |
Unrecognized Compensation Expense and Weighted Average Period | The following table provides the amount of unrecognized compensation expense as of the most recent balance sheet date and the weighted average period over which those expenses will be recorded for both Stock Options and PSUs (dollars in thousands): As of December 31, 2017 Stock Performance Options Share Units Unrecognized expense $ 9,064 $ 1,176 Weighted average remaining years 1.69 1.31 |
Summary of Assumptions Utilized in the Black-Scholes Model for Stock Options Granted | The following table provides the assumptions utilized in the Black-Scholes model for Stock Options granted during the periods presented: Years Ended December 31, 2017 2016 2015 Weighted-average risk-free interest rate 1.94 % 1.40 % 0.54 % Expected term of option in years 5.84 5.44 3.38 Weighted-average volatility 45.1 % 45.2 % 44.3 % Dividend yield 2.0 % 3.4 % 3.4 % Weighted average grant date fair value per share $ 10.18 $ 6.01 $ 6.34 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Related Party Transactions [Abstract] | |
Payments Made by Company to Related Parties | The following table provides payments made by the Company to related parties for the periods presented (in thousands): Years Ended December 31, 2017 2016 2015 SPC Global RE Advisors LLC $ — $ — $ 90 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Components of Income Tax Provision | Significant components of the income tax provision are as follows for the periods presented (in thousands): For the Years Ended December 31, 2017 2016 2015 Current: Federal $ 53,962 $ 50,645 $ 61,830 State and local 8,278 8,105 7,402 Total current expense (benefit) 62,240 58,750 69,232 Deferred: Federal 851 4,106 (775 ) State and local 458 617 82 Total deferred expense (benefit) 1,309 4,723 (693 ) Income tax expense $ 63,549 $ 63,473 $ 68,539 |
Reconciles Statutory Federal Income Tax Rate to Company's Effective Tax Rate | The following table reconciles the statutory federal income tax rate to the Company’s effective income tax rate for the periods presented: For the Years Ended December 31, 2017 2016 2015 Expected provision at federal statutory tax rate 35.0 % 35.0 % 35.0 % Increases (decreases) resulting from: State income tax, net of federal tax benefit 3.2 % 3.2 % 3.4 % Effect of change in tax rate 2.8 % — 0.1 % Disallowed meals & entertainment 0.4 % 0.3 % 0.2 % Disallowed compensation 0.4 % 0.4 % 1.1 % Excess tax benefit (3.4 %) — — Other, net (1.1 %) 0.1 % (0.6 %) Total income tax expense (benefit) 37.3 % 39.0 % 39.2 % |
Components of Deferred Income Taxes | The Company accounts for income taxes using a balance sheet approach. As of December 31, 2017 and 2016, the significant components of the Company’s deferred income taxes consisted of the following (in thousands): As of December 31, 2017 2016 Deferred income tax assets: Unearned premiums $ 19,916 $ 26,861 Advanced premiums 1,275 1,314 Unpaid losses and LAE 385 374 Share-based compensation 3,894 3,256 Accrued wages 288 297 Allowance for uncollectible receivables 224 284 Additional tax basis of securities 33 51 Capital loss carryforwards 822 759 Other comprehensive income 2,544 3,982 Other 84 131 Total deferred income tax assets 29,465 37,309 Valuation allowance (523 ) (133 ) Deferred income tax assets, net of valuation allowance 28,942 37,176 Deferred income tax liabilities: Deferred policy acquisition costs, net (18,205 ) (24,812 ) Prepaid expenses (435 ) (504 ) Fixed assets (881 ) (880 ) Other (135 ) (306 ) Total deferred income tax liabilities (19,656 ) (26,502 ) Net deferred income tax asset $ 9,286 $ 10,674 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 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): Years Ended December 31, 2017 2016 2015 Numerator for EPS: Net income $ 106,935 $ 99,410 $ 106,484 Less: Preferred stock dividends (10 ) (10 ) (10 ) Income available to common stockholders $ 106,925 $ 99,400 $ 106,474 Denominator for EPS: Weighted average common shares outstanding 34,841 34,919 34,799 Plus: Assumed conversion of share-based compensation (1) 943 706 1,056 Assumed conversion of preferred stock 25 25 29 Weighted average diluted common shares outstanding 35,809 35,650 35,884 Basic earnings per common share $ 3.07 $ 2.85 $ 3.06 Diluted earnings per common share $ 2.99 $ 2.79 $ 2.97 Weighted average number of antidilutive shares 1,504 1,583 311 (1) Represents the dilutive effect of unexercised Stock Options, unvested Performance Share Units, and unvested Restricted Stock. |
Other Comprehensive Income (L42
Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | The following table provides the components of other comprehensive income (loss) on a pretax and after-tax basis for the periods presented (in thousands): Years Ended December 31, 2017 2016 2015 Pre-tax Tax After-tax Pre-tax Tax After-tax Pre-tax Tax After-tax Net unrealized gains (losses) on investments available for sale arising during the period $ 2,773 1,058 $ 1,715 $ (1,594 ) (609 ) $ (985 ) $ (2,480 ) $ (963 ) $ (1,517 ) Less: Amounts reclassified from accumulated other comprehensive income (loss) (2,570 ) (982 ) (1,588 ) (2,294 ) (877 ) (1,417 ) (1,060 ) (406 ) (654 ) Net current period other comprehensive income (loss) $ 203 $ 76 $ 127 $ (3,888 ) $ (1,486 ) $ (2,402 ) $ (3,540 ) $ (1,369 ) $ (2,171 ) |
Reclassifications Out of Accumulated Other Comprehensive Income | The following table provides the reclassifications out of accumulated other comprehensive income for the periods presented (in thousands): Amounts Reclassified from Accumulated Other Comprehensive Income Details about Accumulated Other Years Ended December 31, Affected Line Item in the Statement Comprehensive Income Components 2017 2016 2015 Where Net Income is Presented Unrealized gains (losses) on investments available for sale $ 2,570 $ 2,294 $ 1,060 Net realized gains (losses) on investments (982 ) (877 ) (406 ) Income taxes, current $ 1,588 $ 1,417 $ 654 Net of tax |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 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 on a recurring basis as of the dates presented (in thousands): Fair Value Measurements As of December 31, 2017 Level 1 Level 2 Level 3 Total Fixed maturities: U.S. government obligations and agencies $ — $ 59,604 $ — $ 59,604 Corporate bonds — 227,504 — 227,504 Mortgage-backed and asset-backed securities — 219,452 — 219,452 Municipal bonds — 120,295 — 120,295 Redeemable preferred stock — 12,479 — 12,479 Equity securities: Common stock 18,811 — — 18,811 Mutual funds 43,404 — — 43,404 Short-term investments — 10,000 — 10,000 Total assets accounted for at fair value $ 62,215 $ 649,334 $ — $ 711,549 Fair Value Measurements As of December 31, 2016 Level 1 Level 2 Level 3 Total Fixed maturities: U.S. government obligations and agencies $ — $ 74,267 $ — $ 74,267 Corporate bonds — 191,430 — 191,430 Mortgage-backed and asset-backed securities — 214,776 — 214,776 Municipal bonds — 91,197 — 91,197 Redeemable preferred stock — 12,691 — 12,691 Equity securities: Common stock 93 — — 93 Mutual funds 50,710 — — 50,710 Short-term investments — 5,002 — 5,002 Total assets accounted for at fair value $ 50,803 $ 589,363 $ — $ 640,166 |
Summarizes Carrying Value and Estimated Fair Values of Financial Instruments not Carried at Fair Value | The following table summarizes the carrying value and estimated fair values of the Company’s financial instruments that are not carried at fair value as of the dates presented (in thousands): As of December 31, 2017 2016 (Level 3) (Level 3) Carrying Estimated Carrying Estimated Value Fair Value Value Fair Value Liabilities (debt): Surplus note $ 12,868 $ 11,630 $ 14,338 $ 13,282 Promissory note $ — $ — $ 690 $ 690 |
Liability for Unpaid Losses a44
Liability for Unpaid Losses and Loss Adjustment Expenses (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Insurance Loss Reserves [Abstract] | |
Summary of Incurred Claims, Cumulative Paid Claims and Allocated Claim Adjustments Expenses, Net of Reinsurance | Set forth in the following tables is information about unpaid losses and loss adjustment expenses as of December 31, 2017, net of reinsurance and estimated subrogation, as well as cumulative claim counts and the total of incurred-but-not-reported liabilities plus expected development on reported claims included within the liability for unpaid losses and LAE (in thousands). The information about unpaid losses and loss adjustment expenses for the years ended December 31, 2013 to 2015, is presented as supplementary information and is unaudited. Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance As of December 31, 2017 Total of Incurred- but-Not-Reported For the Years Ended December 31, Liabilities Plus Accident Year 2013* 2014* 2015* 2016 2017 Expected Development (Redundancy) on Reported Claims Cumulative Number of Reported Claims 2013 * $ 100,111 $ 96,993 $ 96,012 $ 88,493 $ 91,065 $ (4,704 ) 20,440 2014 * 111,739 118,289 112,251 112,278 (10,886 ) 22,420 2015 * 170,381 187,431 194,600 (15,635 ) 26,703 2016 269,814 286,252 (17,785 ) 39,885 2017 303,944 49,600 93,080 Total $ 988,139 *UNAUDITED Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, Accident Year 2013* 2014* 2015* 2016 2017 2013 * $ 61,117 $ 88,843 $ 93,489 $ 95,059 $ 95,383 2014 * 69,703 112,059 119,798 122,579 2015 * 115,328 191,481 208,592 2016 204,122 297,374 2017 205,200 Total $ 929,128 All outstanding liabilities before 2013, net of reinsurance* (3,469 ) Liabilities for claims and claim adjustment expenses, net of reinsurance $ 55,542 *UNAUDITED |
Reconciliation of Net Incurred and Paid Claims Development Tables to Liability for Unpaid Losses and LAE | Set forth is the following reconciliation of the net incurred and paid claims development tables to the liability for unpaid losses and LAE in the consolidated Balance Sheet as of December 31, 2017 (in thousands): December 31, 2017 Liabilities for unpaid claims and claim adjustment expenses, net of reinsurance $ 55,542 Reinsurance recoverable on unpaid claims 182,405 Unallocated claims adjustment expenses and other 10,478 Total gross liability for unpaid claims and claim adjustment expense $ 248,425 |
Supplementary Information About Average Historical Claims Duration | Set forth is the supplementary information about average historical claims duration as of December 31, 2017: Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance Years 1 2 3 4 5 51.0 % 17.7 % 11.2 % 9.1 % 6.6 % |
Change in Liability for Unpaid Losses and LAE | Set forth in the following table is the change in liability for unpaid losses and LAE for the periods presented (in thousands): Years Ended December 31, 2017 2016 2015 Balance at beginning of year $ 58,494 $ 98,840 $ 134,353 Less: Reinsurance recoverable (106 ) (13,540 ) (47,350 ) Net balance at beginning of period 58,388 85,300 87,003 Incurred (recovered) related to: Current year 322,929 305,919 188,040 Prior years 27,499 (4,690 ) (301 ) Total incurred 350,428 301,229 187,739 Paid related to: Current year 215,274 229,761 123,952 Prior years 127,522 98,380 65,490 Total paid 342,796 328,141 189,442 Net balance at end of period 66,020 58,388 85,300 Plus: Reinsurance recoverable 182,405 106 13,540 Balance at end of year $ 248,425 $ 58,494 $ 98,840 |
Quarterly Results for 2016 and
Quarterly Results for 2016 and 2015 (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of Quarterly Results for the Periods Presented | The following table provides a summary of quarterly results for the periods presented (in thousands except per share data): First Second Third Fourth Quarter Quarter Quarter Quarter For the Year Ended December 31, 2017 Premiums earned, net $ 161,559 $ 169,009 $ 174,517 $ 183,708 Investment income 2,704 3,223 3,085 4,448 Total revenues 174,874 185,487 190,243 201,312 Total expenses 127,503 137,564 173,644 142,721 Net income 31,199 29,376 9,964 36,396 Basic earnings per share $ 0.89 $ 0.84 $ 0.29 $ 1.05 Diluted earnings per share $ 0.86 $ 0.82 $ 0.28 $ 1.03 For the Year Ended December 31, 2016 Premiums earned, net $ 152,448 $ 156,461 $ 159,534 $ 163,973 Investment income 1,605 2,142 2,304 3,489 Total revenues 164,446 169,802 172,436 178,605 Total expenses 123,347 114,908 128,273 155,878 Net income 25,226 33,647 26,882 13,655 Basic earnings per share $ 0.73 $ 0.96 $ 0.77 $ 0.39 Diluted earnings per share $ 0.71 $ 0.94 $ 0.75 $ 0.38 |
Nature of Operations and Basi46
Nature of Operations and Basis of Presentation - Additional Information (Detail) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | |
Apr. 30, 2016USD ($)$ / sharesshares | Dec. 31, 2016USD ($)shares | Dec. 31, 2017State | |
Equity [Line Items] | |||
Number of states | State | 16 | ||
Number of common stock, shares issued | shares | 584,000 | ||
Total consideration for issuance of common stock | $ 10,000 | ||
Private Placement [Member] | RenaissanceRe Ventures Ltd [Member] | |||
Equity [Line Items] | |||
Number of common stock, shares issued | shares | 583,771 | ||
Common stock, price per share | $ / shares | $ 17.13 | ||
Total consideration for issuance of common stock | $ 10,000 | ||
Represents the non-cash portion for cancellation of outstanding indebtedness, including accrued interest | 7,035 | ||
Cash proceeds from private placement | $ 2,965 |
Significant Accounting Polici47
Significant Accounting Policies - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Schedule Of Significant Accounting Policies [Line Items] | ||
Maximum maturity period of highly liquid investments | 3 months | |
Allowances for doubtful accounts | $ 680,000 | $ 527,000 |
Accruals for premium deficiency | 0 | 0 |
Fair value, assets, level 1 to level 2 transfers | 0 | 0 |
Fair value, assets, level 2 to level 1 transfers | 0 | 0 |
Fair value, liabilities, level 1 to level 2 transfers | 0 | 0 |
Fair value, liabilities, level 2 to level 1 transfers | 0 | $ 0 |
Accounting Standards Update 2016-09 Compensation - Stock Compensation [Member] | ||
Schedule Of Significant Accounting Policies [Line Items] | ||
Excess tax benefit | $ 5,800,000 | |
Website Development [Member] | ||
Schedule Of Significant Accounting Policies [Line Items] | ||
Useful life of property and equipment | 3 years | |
Software [Member] | ||
Schedule Of Significant Accounting Policies [Line Items] | ||
Useful life of property and equipment | 3 years | |
Minimum [Member] | ||
Schedule Of Significant Accounting Policies [Line Items] | ||
Short-term investment maturity period | 3 months | |
Useful life of property and equipment | 3 years | |
Maximum [Member] | ||
Schedule Of Significant Accounting Policies [Line Items] | ||
Useful life of property and equipment | 27 years 6 months |
Investments - Cost or Amortized
Investments - Cost or Amortized Cost and Fair Value of Securities Available for Sale (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Schedule Of Available For Sale Securities [Line Items] | ||
Cost or Amortized Cost | $ 721,755 | $ 650,575 |
Gross Unrealized Gains | 1,805 | 1,201 |
Gross Unrealized Losses | (12,011) | (11,610) |
Fair Value | 711,549 | 640,166 |
Short-term Investments [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Cost or Amortized Cost | 10,000 | 5,000 |
Gross Unrealized Gains | 2 | |
Fair Value | 10,000 | 5,002 |
U.S. Government Obligations and Agencies [Member] | Fixed Maturities [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Cost or Amortized Cost | 60,481 | 74,937 |
Gross Unrealized Losses | (877) | (670) |
Fair Value | 59,604 | 74,267 |
Corporate Bonds [Member] | Fixed Maturities [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Cost or Amortized Cost | 228,336 | 192,328 |
Gross Unrealized Gains | 476 | 402 |
Gross Unrealized Losses | (1,308) | (1,300) |
Fair Value | 227,504 | 191,430 |
Mortgage-Backed and Asset-Backed Securities [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Cost or Amortized Cost | 221,956 | 216,679 |
Fair Value | 219,452 | 214,776 |
Mortgage-Backed and Asset-Backed Securities [Member] | Fixed Maturities [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Cost or Amortized Cost | 221,956 | 216,679 |
Gross Unrealized Gains | 19 | 135 |
Gross Unrealized Losses | (2,523) | (2,038) |
Fair Value | 219,452 | 214,776 |
Municipal Bonds [Member] | Fixed Maturities [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Cost or Amortized Cost | 120,883 | 94,794 |
Gross Unrealized Gains | 599 | 130 |
Gross Unrealized Losses | (1,187) | (3,727) |
Fair Value | 120,295 | 91,197 |
Redeemable Preferred Stock [Member] | Fixed Maturities [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Cost or Amortized Cost | 12,059 | 12,723 |
Gross Unrealized Gains | 485 | 125 |
Gross Unrealized Losses | (65) | (157) |
Fair Value | 12,479 | 12,691 |
Common Stock [Member] | Equity Securities [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Cost or Amortized Cost | 22,584 | 214 |
Gross Unrealized Gains | 47 | |
Gross Unrealized Losses | (3,820) | (121) |
Fair Value | 18,811 | 93 |
Mutual Funds [Member] | Equity Securities [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Cost or Amortized Cost | 45,456 | 53,900 |
Gross Unrealized Gains | 179 | 407 |
Gross Unrealized Losses | (2,231) | (3,597) |
Fair Value | $ 43,404 | $ 50,710 |
Investments - Schedule of Credi
Investments - Schedule of Credit Quality of Investment Securities With Contractual Maturities or The Issuer of Such Securities (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Schedule Of Available For Sale Securities [Line Items] | ||
Fair Value | $ 649,334 | $ 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 | $ 135,237 | $ 131,260 |
Percentage of Total Fair Value | 20.80% | 22.30% |
Comparable Ratings, AA Rating [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fair Value | $ 292,496 | $ 275,480 |
Percentage of Total Fair Value | 45.10% | 46.70% |
Comparable Ratings, A Rating [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fair Value | $ 134,505 | $ 107,418 |
Percentage of Total Fair Value | 20.70% | 18.20% |
Comparable Ratings, BBB Rating [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fair Value | $ 80,566 | $ 67,263 |
Percentage of Total Fair Value | 12.40% | 11.40% |
Comparable Ratings, BB and Below Rating [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fair Value | $ 2,919 | $ 3,444 |
Percentage of Total Fair Value | 0.40% | 0.60% |
Comparable Ratings, No Rating Available [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fair Value | $ 3,611 | $ 4,498 |
Percentage of Total Fair Value | 0.60% | 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 | Dec. 31, 2017 | Dec. 31, 2016 |
Schedule Of Available For Sale Securities [Line Items] | ||
Cost or Amortized Cost | $ 721,755 | $ 650,575 |
Fair Value | 711,549 | 640,166 |
Mortgage-backed securities [Member] | Agency [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Cost or Amortized Cost | 118,014 | 110,724 |
Fair Value | 116,014 | 109,022 |
Mortgage-backed securities [Member] | Non Agency [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Cost or Amortized Cost | 17,676 | 19,408 |
Fair Value | 17,488 | 19,265 |
Asset-backed securities [Member] | Auto Loans Receivables [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Cost or Amortized Cost | 35,105 | 37,390 |
Fair Value | 34,962 | 37,429 |
Asset-backed securities [Member] | Credit Card Receivables [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Cost or Amortized Cost | 38,844 | 38,640 |
Fair Value | 38,719 | 38,568 |
Asset-backed securities [Member] | Other Receivables [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Cost or Amortized Cost | 12,317 | 10,517 |
Fair Value | 12,269 | 10,492 |
Mortgage-Backed and Asset-Backed Securities [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Cost or Amortized Cost | 221,956 | 216,679 |
Fair Value | $ 219,452 | $ 214,776 |
Investments - Summarized Fair V
Investments - Summarized Fair Value and Gross Unrealized Losses on Securities Available for Sale (Detail) $ in Thousands | Dec. 31, 2017USD ($)Security | Dec. 31, 2016USD ($)Security |
Schedule Of Available For Sale Securities [Line Items] | ||
Less than 12 months, Number of issues | Security | 311 | 323 |
Less than 12 months, Fair value | $ 389,066 | $ 430,540 |
Less than 12 months, Unrealized losses | $ (6,314) | $ (8,415) |
12 months or longer, Number of issues | Security | 116 | 15 |
12 months or longer, Fair value | $ 181,695 | $ 28,018 |
12 months or longer, Unrealized losses | $ (5,697) | (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 | 7 | 11 |
Less than 12 months, Fair value | $ 35,464 | $ 70,453 |
Less than 12 months, Unrealized losses | $ (301) | $ (608) |
12 months or longer, Number of issues | Security | 9 | 2 |
12 months or longer, Fair value | $ 24,140 | $ 3,504 |
12 months or longer, Unrealized losses | $ (576) | $ (62) |
Corporate Bonds [Member] | Fixed Maturities [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Less than 12 months, Number of issues | Security | 159 | 116 |
Less than 12 months, Fair value | $ 142,208 | $ 96,379 |
Less than 12 months, Unrealized losses | $ (792) | $ (1,219) |
12 months or longer, Number of issues | Security | 39 | 4 |
12 months or longer, Fair value | $ 29,796 | $ 3,250 |
12 months or longer, Unrealized losses | $ (516) | $ (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 | 83 | 73 |
Less than 12 months, Fair value | $ 137,481 | $ 149,928 |
Less than 12 months, Unrealized losses | $ (955) | $ (1,923) |
12 months or longer, Number of issues | Security | 37 | 5 |
12 months or longer, Fair value | $ 70,218 | $ 9,660 |
12 months or longer, Unrealized losses | $ (1,568) | $ (115) |
Municipal Bonds [Member] | Fixed Maturities [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Less than 12 months, Number of issues | Security | 36 | 69 |
Less than 12 months, Fair value | $ 28,265 | $ 79,402 |
Less than 12 months, Unrealized losses | $ (246) | $ (3,726) |
12 months or longer, Number of issues | Security | 30 | |
12 months or longer, Fair value | $ 48,370 | |
12 months or longer, Unrealized losses | $ (941) | |
Redeemable Preferred Stock [Member] | Fixed Maturities [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Less than 12 months, Number of issues | Security | 21 | 50 |
Less than 12 months, Fair value | $ 2,464 | $ 6,340 |
Less than 12 months, Unrealized losses | $ (65) | $ (158) |
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 | $ 17,846 | $ 18 |
Less than 12 months, Unrealized losses | $ (3,820) | $ (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 | 3 | 3 |
Less than 12 months, Fair value | $ 25,338 | $ 28,020 |
Less than 12 months, Unrealized losses | $ (135) | $ (774) |
12 months or longer, Number of issues | Security | 1 | 2 |
12 months or longer, Fair value | $ 9,171 | $ 11,529 |
12 months or longer, Unrealized losses | $ (2,096) | $ (2,823) |
Investments - Additional Inform
Investments - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Schedule Of Available For Sale Securities [Line Items] | ||
Equity securities, Unrealized loss position twelve months or longer | $ 181,695,000 | $ 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 | Dec. 31, 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 | $ 51,846 | |
Fixed Maturities Securities Available for Sale, Due after one year through five years, Amortized cost | 235,323 | |
Fixed Maturities Securities Available for Sale, Due after five years through ten years, Amortized cost | 56,806 | |
Fixed Maturities Securities Available for Sale, Due after ten years, Amortized cost | 75,725 | |
Fixed Maturities Securities Available for Sale, Perpetual Maturity, Amortized Cost | 12,059 | |
Fixed Maturities Securities Available for Sale, Amortized cost, Total | 653,715 | |
Fixed Maturities Securities Available for Sale, Due in one year or less, Fair Value | 51,804 | |
Fixed Maturities Securities Available for Sale, Due after one year through five years, Fair Value | 233,849 | |
Fixed Maturities Securities Available for Sale, Due after five years through ten years, Fair Value | 56,677 | |
Fixed Maturities Securities Available for Sale, Due after ten years, Fair Value | 75,073 | |
Fixed Maturities Securities Available for Sale, Perpetual Maturity, Fair Value | 12,479 | |
Fixed Maturities Securities Available for Sale, Fair Value, Total | 649,334 | $ 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 | 221,956 | |
Fixed Maturities Securities Available for Sale, Mortgage-backed Securities, Fair Value | $ 219,452 |
Investments - Summary of Securi
Investments - Summary of Securities Available for Sale (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Investments Debt And Equity Securities [Abstract] | ||
Proceeds from sales and maturities (fair value) | $ 206,010 | $ 226,191 |
Gross realized gains | 2,873 | 2,329 |
Gross realized losses | $ (303) | $ (35) |
Investments - Investment Income
Investments - Investment Income (Expense) Comprised Primarily of Interest and Dividends (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Net Investment Income [Line Items] | |||||||||||
Total investment income | $ 15,655 | $ 11,746 | $ 7,440 | ||||||||
Less: Investment expenses | (2,195) | (2,206) | (2,285) | ||||||||
Net investment (expense) income | $ 4,448 | $ 3,085 | $ 3,223 | $ 2,704 | $ 3,489 | $ 2,304 | $ 2,142 | $ 1,605 | 13,460 | 9,540 | 5,155 |
Fixed Maturities [Member] | |||||||||||
Net Investment Income [Line Items] | |||||||||||
Investment income | 12,375 | 9,523 | 5,642 | ||||||||
Equity Securities [Member] | |||||||||||
Net Investment Income [Line Items] | |||||||||||
Investment income | 1,799 | 1,414 | 1,143 | ||||||||
Short-term Investments [Member] | |||||||||||
Net Investment Income [Line Items] | |||||||||||
Investment income | 22 | 75 | 246 | ||||||||
Other [Member] | |||||||||||
Net Investment Income [Line Items] | |||||||||||
Investment income | $ 1,459 | $ 734 | $ 409 |
Investments - Schedule of Real
Investments - Schedule of Real Estate Investment (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Real Estate [Line Items] | ||
Investment real estate, net | $ 18,474 | $ 11,435 |
Income Producing [Member] | ||
Real Estate [Line Items] | ||
Investment real estate | 6,918 | 6,918 |
Less: Accumulated depreciation | (460) | (281) |
Investment real estate, net | 6,458 | 6,637 |
Non-Income Producing [Member] | ||
Real Estate [Line Items] | ||
Properties under development | $ 12,016 | $ 4,798 |
Reinsurance - Additional Inform
Reinsurance - Additional Information (Detail) | 12 Months Ended | |
Dec. 31, 2017 | May 31, 2015 | |
Stockholders' Equity, Total [Member] | Amounts Due From Reinsurers [Member] | ||
Effects of Reinsurance [Line Items] | ||
Unsecured amounts due from reinsurers exceeding a fixed percentage of stockholders equity | 3.00% | |
Reinsurance Program Effective June One Two Thousand Fourteen [Member] | ||
Effects of Reinsurance [Line Items] | ||
Percentage of premium ceded | 30.00% |
Reinsurance - Summary of Quota-
Reinsurance - Summary of Quota-Share Cession Rates by Reinsurance Program (Detail) | 12 Months Ended |
Dec. 31, 2017 | |
June 2014 - May 2015 | |
Quota Share Cession Rate By Reinsurance Program [Line Items] | |
Percentage of cession rate | 30.00% |
June 2015 - May 2016 | |
Quota Share Cession Rate By Reinsurance Program [Line Items] | |
Percentage of cession rate | 0.00% |
June 2016 - May 2017 | |
Quota Share Cession Rate By Reinsurance Program [Line Items] | |
Percentage of cession rate | 0.00% |
June 2017 - May 2018 | |
Quota Share Cession Rate By Reinsurance Program [Line Items] | |
Percentage of cession rate | 0.00% |
Reinsurance - Current Ratings f
Reinsurance - Current Ratings from Rating Agencies and Unsecured Net Amounts Due from Reinsurers Whose Aggregate Balance Exceeded 3% of Stockholders' Equity (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Ceded Credit Risk [Line Items] | ||
Reinsurance unsecured amounts due from reinsurers total | $ 180,172 | $ 46,364 |
Allianz Risk Transfer [Member] | AM Best Company A+ [Member] | Standard and Poor's AA- [Member] | ||
Ceded Credit Risk [Line Items] | ||
Reinsurance unsecured amounts due from reinsurers total | 105,573 | |
Florida Hurricane Catastrophe Fund [Member] | ||
Ceded Credit Risk [Line Items] | ||
Reinsurance unsecured amounts due from reinsurers total | 52,054 | $ 46,364 |
Renaissance Reinsurance Ltd [Member] | AM Best Company A+ [Member] | Standard and Poor's AA- [Member] | Moody's A1 [Member] | ||
Ceded Credit Risk [Line Items] | ||
Reinsurance unsecured amounts due from reinsurers total | $ 22,545 |
Reinsurance - Reinsurance Arran
Reinsurance - Reinsurance Arrangements (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Reinsurance Disclosures [Abstract] | |||||||||||
Direct premiums written | $ 1,055,886 | $ 954,617 | $ 883,409 | ||||||||
Ceded premiums written | (318,826) | (298,523) | (256,961) | ||||||||
Net premiums written | 737,060 | 656,094 | 626,448 | ||||||||
Direct premiums earned | 999,198 | 921,227 | 836,792 | ||||||||
Ceded premiums earned | (310,405) | (288,811) | (332,793) | ||||||||
Premiums earned, net | $ 183,708 | $ 174,517 | $ 169,009 | $ 161,559 | $ 163,973 | $ 159,534 | $ 156,461 | $ 152,448 | 688,793 | 632,416 | 503,999 |
Direct Losses and Loss Adjustment Expenses | 779,122 | 303,036 | 214,491 | ||||||||
Ceded Losses and Loss Adjustment Expenses | (428,694) | (1,807) | (26,752) | ||||||||
Net Losses and Loss Adjustment Expenses | $ 350,428 | $ 301,229 | $ 187,739 |
Reinsurance - Prepaid Reinsuran
Reinsurance - Prepaid Reinsurance Premiums (Payable) and Reinsurance Recoverable and Receivable (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Reinsurance Disclosures [Abstract] | ||||
Prepaid reinsurance premiums | $ 132,806 | $ 124,385 | ||
Reinsurance recoverable on unpaid losses and LAE | 182,405 | 106 | $ 13,540 | $ 47,350 |
Reinsurance recoverable (payable) on paid losses | (1,532) | |||
Reinsurance receivable, net | 186 | |||
Reinsurance recoverable (payable) and receivable | $ 182,405 | $ (1,240) |
Insurance Operations - Beginnin
Insurance Operations - Beginning and Ending Balances and Changes in DPAC, Net of DRCC (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Insurance [Abstract] | |||
DPAC, beginning of year | $ 64,912 | $ 60,019 | $ 54,603 |
Capitalized Costs | 144,849 | 130,243 | 116,954 |
Amortization of DPAC | (136,702) | (125,350) | (111,538) |
DPAC, end of year | 73,059 | 64,912 | 60,019 |
DRCC, beginning of year | 28,943 | ||
Ceding Commissions Written | (5,276) | ||
Earned Ceding Commissions | (23,667) | ||
DPAC (DRCC), net, beginning of year | 64,912 | 60,019 | 25,660 |
Capitalized Costs, net | 144,849 | 130,243 | 122,230 |
Amortization of DPAC (DRCC), net | (136,702) | (125,350) | (87,871) |
DPAC (DRCC), net, end of year | $ 73,059 | $ 64,912 | $ 60,019 |
Insurance Operations - Addition
Insurance Operations - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statutory Accounting Practices [Line Items] | |||
Insurance entities combined net income | $ 35,600,000 | $ 58,200,000 | $ 53,600,000 |
UPCIC [Member] | |||
Statutory Accounting Practices [Line Items] | |||
Ordinary dividend capacity accordance with Florida Insurance Code | 36,200,000 | ||
Dividend paid to immediate parent company | 30,000,000 | 0 | 0 |
APPCIC [Member] | |||
Statutory Accounting Practices [Line Items] | |||
Dividend paid to immediate parent company | $ 0 | $ 0 | $ 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 but not less than $10.0 million. |
Insurance Operations - Statutor
Insurance Operations - Statutory Capital and Surplus, and an Amount Representing Ten Percent of Total Liabilities for both UPCIC and APPCIC (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Statutory Accounting Practices [Line Items] | ||
Statutory capital and surplus | $ 12,900 | |
UPCIC [Member] | ||
Statutory Accounting Practices [Line Items] | ||
Ten percent of total liabilities | 72,633 | $ 57,560 |
Statutory capital and surplus | 307,686 | 313,753 |
APPCIC [Member] | ||
Statutory Accounting Practices [Line Items] | ||
Ten percent of total liabilities | 572 | 464 |
Statutory capital and surplus | $ 16,633 | $ 17,280 |
Insurance Operations - Capital
Insurance Operations - Capital Contributions Made by UVE (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Insurance [Abstract] | |
Capital Contributions | $ 2,000 |
Insurance Operations - Assets H
Insurance Operations - Assets Held by Insurance Regulators (Detail) - USD ($) $ in Thousands | Dec. 31, 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 | $ 3,910 | $ 3,952 |
Property and Equipment - Compon
Property and Equipment - Components of Property and Equipment (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Property Plant And Equipment [Line Items] | ||
Total | $ 38,862 | $ 36,638 |
Less: Accumulated depreciation | (10,829) | (8,527) |
Property and equipment, net | 32,866 | 32,162 |
Land [Member] | ||
Property Plant And Equipment [Line Items] | ||
Total | 4,489 | 4,489 |
Building [Member] | ||
Property Plant And Equipment [Line Items] | ||
Total | 17,644 | 17,633 |
Computers [Member] | ||
Property Plant And Equipment [Line Items] | ||
Total | 5,589 | 5,577 |
Furniture [Member] | ||
Property Plant And Equipment [Line Items] | ||
Total | 1,637 | 1,381 |
Automobiles and Other Vehicles [Member] | ||
Property Plant And Equipment [Line Items] | ||
Total | 6,857 | 5,523 |
Software [Member] | ||
Property Plant And Equipment [Line Items] | ||
Total | 2,646 | 2,035 |
Net of Accumulated Depreciation [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, net | 28,033 | 28,111 |
Construction in progress [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, net | $ 4,833 | $ 4,051 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Property Plant And Equipment [Abstract] | |||
Depreciation and amortization | $ 3.9 | $ 3.1 | $ 1.9 |
Property and Equipment - Realiz
Property and Equipment - Realized Gain (Losses) on the Disposal of Property and Equipment (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Property and Equipment [Member] | |||
Property Plant And Equipment [Line Items] | |||
Realized gain (loss) on disposal | $ (35) | $ (31) | $ (26) |
Long-Term Debt - Schedule of Lo
Long-Term Debt - Schedule of Long-Term Debt (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||
Total | $ 12,868 | $ 15,028 |
Surplus Note [Member] | ||
Debt Instrument [Line Items] | ||
Notes payable | $ 12,868 | 14,338 |
Promissory Note [Member] | ||
Debt Instrument [Line Items] | ||
Notes payable | $ 690 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Detail) - USD ($) | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Nov. 09, 2006 | |
Debt Instrument [Line Items] | ||||
Statutory capital and surplus | $ 12,900,000 | |||
Principal repayments of Surplus Note | 1,500,000 | $ 1,500,000 | $ 1,500,000 | |
Surplus during the term of surplus note | 50,000,000 | |||
Interest Expense | $ 300,000 | $ 400,000 | $ 1,000,000 | |
Surplus Note [Member] | ||||
Debt Instrument [Line Items] | ||||
Unsecured term loan agreement | $ 25,000,000 | |||
Effective interest rate | 2.31% | 1.88% | 2.21% | |
Principal repayments of Surplus Note | $ 368,000 | |||
Maturity year of debt instrument | through 2,026 | |||
Net written premium to surplus ratio | 200.00% | |||
Gross written premium to surplus ratio | 600.00% | |||
Surplus Note [Member] | Hurricane [Member] | ||||
Debt Instrument [Line Items] | ||||
Surplus and Reinsurance sufficient to cover in excess of UPCIC probable maximum loss | 1-in-100 year |
Long-term Debt - Estimate of Pr
Long-term Debt - Estimate of Principal Payments to be Made for the Amount Due on the Surplus Note (Detail) $ in Thousands | Dec. 31, 2017USD ($) |
Debt Disclosure [Abstract] | |
2,018 | $ 1,471 |
2,019 | 1,471 |
2,020 | 1,471 |
2,021 | 1,471 |
2,022 | 1,471 |
Thereafter | 5,513 |
Total | $ 12,868 |
Stockholder's Equity - Cumulati
Stockholder's Equity - Cumulative Convertible Preferred Stock (Detail) - shares shares in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Convertible Preferred Stock [Line Items] | ||
Shares issued and outstanding | 10 | 10 |
Series A [Member] | ||
Convertible Preferred Stock [Line Items] | ||
Shares issued and outstanding | 10 | 10 |
Conversion factor | 2.50% | 2.50% |
Common shares resulting if converted | 25 | 25 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - USD ($) | 1 Months Ended | 3 Months Ended | 4 Months Ended | 12 Months Ended | 19 Months Ended | ||||||
Apr. 30, 2016 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2017 | Jun. 30, 2016 | |
Equity [Line Items] | |||||||||||
Number of common stock, shares issued | 584,000 | ||||||||||
Total consideration for issuance of common stock | $ 10,000,000 | ||||||||||
Treasury shares acquired | 771,000 | 441,000 | 748,000 | ||||||||
Shares repurchased during period | $ 18,141,000 | $ 8,510,000 | $ 18,649,000 | ||||||||
Received distributions from the earnings of subsidiaries | 122,200,000 | 46,900,000 | 58,200,000 | ||||||||
Capital contributions to subsidiaries | 0 | 0 | |||||||||
APPCIC [Member] | |||||||||||
Equity [Line Items] | |||||||||||
Capital contributions to subsidiaries | $ 0 | 2,000,000 | $ 0 | ||||||||
June 2016 Share Repurchase Program [Member] | |||||||||||
Equity [Line Items] | |||||||||||
Treasury shares acquired | 861,296 | ||||||||||
Shares repurchased during period | $ 20,000,000 | ||||||||||
Stock Repurchase Program Expiration Date | Dec. 31, 2017 | ||||||||||
September 2017 Share Repurchase Program [Member] | |||||||||||
Equity [Line Items] | |||||||||||
Treasury shares acquired | 8,192 | ||||||||||
Shares repurchased during period | $ 200,000 | ||||||||||
Stock Repurchase Program Expiration Date | Dec. 31, 2018 | ||||||||||
Open Market [Member] | |||||||||||
Equity [Line Items] | |||||||||||
Treasury shares acquired | 770,559 | ||||||||||
Shares repurchased during period | $ 18,100,000 | ||||||||||
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 | ||||||||||
Private Placement [Member] | RenaissanceRe Ventures Ltd [Member] | |||||||||||
Equity [Line Items] | |||||||||||
Number of common stock, shares issued | 583,771 | ||||||||||
Common stock, price per share | $ 17.13 | ||||||||||
Total consideration for issuance of common stock | $ 10,000,000 | ||||||||||
Cash proceeds from private placement | 2,965,000 | ||||||||||
Amount of non-cash portion for cancellation of outstanding indebtedness, including accrued interest | $ 7,035,000 | ||||||||||
Series A [Member] | |||||||||||
Equity [Line Items] | |||||||||||
Series A preferred stock pays a cumulative dividend | $ 0.25 | $ 0.25 | $ 0.25 | $ 0.25 | |||||||
Preferred stock aggregate dividends | $ 10,000 | $ 10,000 |
Stockholder's Equity - Activity
Stockholder's Equity - Activity Relating to Common Shares (Detail) - shares shares in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Equity [Abstract] | ||||
Issued shares, beginning balance | 45,324 | 45,525 | 44,769 | |
Treasury shares, beginning balance | (10,272) | (10,415) | (9,667) | |
Outstanding shares, beginning balance | 35,052 | 35,110 | 35,102 | |
Shares repurchased | (771) | (441) | (748) | |
Options exercised | 804 | 124 | 751 | |
Restricted stock grant | 615 | |||
Shares acquired through cashless exercise | [1] | (491) | (325) | (610) |
Issued shares, shares cancelled | (491) | (325) | (610) | |
Issued shares, ending balance | 45,778 | 45,324 | 45,525 | |
Shares reissued | 584 | |||
Vesting of performance share units | 115 | |||
Common stock issued | 26 | |||
Treasury shares, shares cancelled | 491 | 325 | 610 | |
Treasury shares, ending balance | (11,043) | (10,272) | (10,415) | |
Outstanding shares, ending balance | 34,735 | 35,052 | 35,110 | |
[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 or restricted stock (as defined in “—Note 9 (Share-Based Compensation)”) vested. These shares have been cancelled by the Company. |
Stockholders' Equity - Summary
Stockholders' Equity - Summary of Dividends Declared on its Outstanding Shares of Common Stock to its Shareholders (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Equity [Abstract] | |||||||||||||||
Dividends per share declared on outstanding common stock | $ 0.27 | $ 0.14 | $ 0.14 | $ 0.14 | $ 0.27 | $ 0.14 | $ 0.14 | $ 0.14 | $ 0.27 | $ 0.12 | $ 0.12 | $ 0.12 | $ 0.69 | $ 0.69 | $ 0.63 |
Aggregate amount | $ 9,392 | $ 4,830 | $ 4,887 | $ 4,932 | $ 9,461 | $ 4,903 | $ 4,913 | $ 4,915 | $ 9,492 | $ 4,275 | $ 4,283 | $ 4,237 | $ 24,051 | $ 24,202 | $ 22,297 |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2017shares | |
Outstanding Shares [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Remaining shares reserved for issuance | 2,064,493 |
Stock Option [Member] | Minimum [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Stock option awards, expiration period | 5 years |
Vested and non-vested stock awards, vesting service period | 1 year |
Stock Option [Member] | Maximum [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Stock option awards, expiration period | 10 years |
Vested and non-vested stock awards, vesting service period | 3 years |
Restricted Stock [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Vested and non-vested stock awards, vesting service period | 3 years |
Performance Share Units [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Vested and non-vested stock awards, vesting service period | 3 years |
Conversion ratio of awards vesting | 100.00% |
Share-Based Compensation - Cert
Share-Based Compensation - Certain Information Related to Stock Options and PSUs (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Stock Options Number of Options beginning balance | 3,214 | ||
Stock Options Number of Options Granted | 797 | ||
Stock Options Number of Options Exercised | (804) | (124) | (751) |
Stock Options Number of Options ending balance | 3,207 | 3,214 | |
Stock Options Number of Options Exercisable | 1,325 | ||
Stock Options Weighted Average Exercise Price per Share Outstanding beginning balance | $ 15.77 | ||
Stock Options Weighted Average Exercise Price per Share Granted | 27.20 | ||
Stock Options Weighted Average Exercise Price per Share Exercised | 6.95 | ||
Stock Options Weighted Average Exercise Price per Share Outstanding ending balance | 20.82 | $ 15.77 | |
Stock Options Weighted Average Exercise Price per Share Exercisable | $ 18.62 | ||
Stock Options Aggregate Intrinsic Value Outstanding | $ 20,935 | ||
Stock Options Aggregate Intrinsic Value Exercisable | $ 11,570 | ||
Outstanding as of December 31, 2017 | 6 years 2 months 5 days | ||
Exercisable Stock Options Weighted Average Remaining Term | 4 years 5 months 20 days | ||
Performance Share Units [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Number of Shares beginning balance | 173 | ||
Number of Shares Granted | 147 | ||
Number of Shares Vested | (115) | ||
Number of Shares ending balance | 205 | 173 | |
Weighted Average Grant Date Fair Value per Share beginning balance | $ 23.18 | ||
Weighted Average Grant Date Fair Value per Share Granted | 27.20 | $ 23.18 | |
Weighted Average Grant Date Fair Value per Share Vested | 23.18 | ||
Weighted Average Grant Date Fair Value per Share ending balance | $ 26.07 | $ 23.18 |
Share-Based Compensation - Ce79
Share-Based Compensation - Certain Information Regarding Company's Share-Based Compensation (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Compensation expense, Total | $ 10,515 | $ 10,288 | $ 17,386 |
Deferred tax benefits, Total | 4,019 | 3,933 | 5,348 |
Realized tax benefits, Total | 7,095 | 5,050 | 5,369 |
Excess tax benefits (shortfall) | 5,793 | (1,154) | 5,310 |
Intrinsic value of options exercised | $ 15,256 | 1,894 | 14,734 |
Cash received for strike price and tax withholdings | $ 119 | $ 519 | |
Shares acquired through cashless exercise | 491 | 325 | 611 |
Value of shares acquired through cashless exercise | $ 12,808 | $ 6,238 | $ 15,445 |
Stock Option [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Compensation expense, Stock options | 6,907 | 3,641 | 1,389 |
Deferred tax benefits, Total | 2,640 | 1,392 | 532 |
Realized tax benefits, Total | 5,831 | 724 | 5,369 |
Excess tax benefits (shortfall) | $ 5,548 | $ 642 | $ 5,310 |
Weighted average fair value per option or share, Stock option grants | $ 10.18 | $ 6.01 | $ 6.34 |
Restricted Stock [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Compensation expense | $ 3,433 | $ 15,997 | |
Deferred tax benefits, Total | 1,312 | $ 4,816 | |
Realized tax benefits, Total | 4,326 | ||
Excess tax benefits (shortfall) | (1,796) | ||
Weighted average fair value per option or share, Restricted stock grants/Performance share unit grants | $ 26.04 | ||
Fair value of restricted stock vested/performance share units vested | 11,319 | $ 17,505 | |
Performance Share Units [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Compensation expense | $ 3,608 | 3,214 | |
Deferred tax benefits, Total | 1,379 | $ 1,229 | |
Realized tax benefits, Total | 1,264 | ||
Excess tax benefits (shortfall) | $ 245 | ||
Weighted average fair value per option or share, Restricted stock grants/Performance share unit grants | $ 27.20 | $ 23.18 | |
Fair value of restricted stock vested/performance share units vested | $ 3,307 |
Share-Based Compensation - Unre
Share-Based Compensation - Unrecognized Compensation Expense and Weighted Average Period (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Stock Option [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Unrecognized expense | $ 9,064 |
Weighted average remaining years | 1 year 8 months 9 days |
Performance Share Units [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Unrecognized expense | $ 1,176 |
Weighted average remaining years | 1 year 3 months 22 days |
Share-Based Compensation - Summ
Share-Based Compensation - Summary of Assumptions Utilized in the Black-Scholes Model for Stock Options Granted (Detail) - Stock Option [Member] - $ / shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Weighted-average risk-free interest rate | 1.94% | 1.40% | 0.54% |
Expected term of option in years | 5 years 10 months 3 days | 5 years 5 months 9 days | 3 years 4 months 17 days |
Weighted-average volatility | 45.10% | 45.20% | 44.30% |
Dividend yield | 2.00% | 3.40% | 3.40% |
Weighted average grant date fair value per share | $ 10.18 | $ 6.01 | $ 6.34 |
Employee Benefit Plan - Additio
Employee Benefit Plan - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Compensation And Retirement Disclosure [Abstract] | |||
Company contribution percentage | 100.00% | ||
Participant's contribution percentage | 5.00% | ||
Additional profit-sharing contribution | $ 0 | $ 0 | $ 0 |
Aggregate contributions | $ 1,600,000 | $ 1,200,000 | $ 1,000,000 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - SPC Global RE Advisors LLC [Member] - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2015 | |
Related Party Transaction [Line Items] | ||
Consulting agreement terminated date | Sep. 18, 2015 | |
Payments due to related party | $ 0 |
Related Party Transactions - Pa
Related Party Transactions - Payments Made by Company to Related Parties (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($) | |
SPC Global RE Advisors LLC [Member] | |
Related Party Transaction [Line Items] | |
Payments made by the company to related party | $ 90 |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Provision (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Current: | |||
Federal | $ 53,962 | $ 50,645 | $ 61,830 |
State and local | 8,278 | 8,105 | 7,402 |
Total current expense (benefit) | 62,240 | 58,750 | 69,232 |
Deferred: | |||
Federal | 851 | 4,106 | (775) |
State and local | 458 | 617 | 82 |
Total deferred expense (benefit) | 1,309 | 4,723 | (693) |
Income tax expense | $ 63,549 | $ 63,473 | $ 68,539 |
Income Taxes - Reconciles Statu
Income Taxes - Reconciles Statutory Federal Income Tax Rate to Company' s Effective Tax Rate (Detail) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Expected provision at federal statutory tax rate | 35.00% | 35.00% | 35.00% |
Increases (decreases) resulting from: | |||
State income tax, net of federal tax benefit | 3.20% | 3.20% | 3.40% |
Effect of change in tax rate | 2.80% | 0.10% | |
Disallowed meals & entertainment | 0.40% | 0.30% | 0.20% |
Disallowed compensation | 0.40% | 0.40% | 1.10% |
Excess tax benefit | (3.40%) | ||
Other, net | (1.10%) | 0.10% | (0.60%) |
Total income tax expense (benefit) | 37.30% | 39.00% | 39.20% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Taxes [Line Items] | |||
Other tax expense (benefit) | $ 1,200,000 | ||
Tax cuts and jobs act of 2017 reduction in deferred tax assets | 4,700,000 | ||
Tax cuts and jobs act of 2017, tax expense due to change in tax rate | 4,700,000 | ||
Valuation allowance | 523,000 | $ 133,000 | |
Uncertain tax liabilities | 0 | $ 0 | $ 0 |
State | |||
Income Taxes [Line Items] | |||
Valuation allowance | 297,000 | ||
Adjustments for New Accounting Pronouncement [Member] | |||
Income Taxes [Line Items] | |||
Excess tax benefit | $ 5,800,000 |
Income Taxes - Components of De
Income Taxes - Components of Deferred Income Taxes (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred income tax assets: | ||
Unearned premiums | $ 19,916 | $ 26,861 |
Advanced premiums | 1,275 | 1,314 |
Unpaid losses and LAE | 385 | 374 |
Share-based compensation | 3,894 | 3,256 |
Accrued wages | 288 | 297 |
Allowance for uncollectible receivables | 224 | 284 |
Additional tax basis of securities | 33 | 51 |
Capital loss carryforwards | 822 | 759 |
Other comprehensive income | 2,544 | 3,982 |
Other | 84 | 131 |
Total deferred income tax assets | 29,465 | 37,309 |
Valuation allowance | (523) | (133) |
Deferred income tax assets, net of valuation allowance | 28,942 | 37,176 |
Deferred income tax liabilities: | ||
Deferred policy acquisition costs, net | (18,205) | (24,812) |
Prepaid expenses | (435) | (504) |
Fixed assets | (881) | (880) |
Other | (135) | (306) |
Total deferred income tax liabilities | (19,656) | (26,502) |
Net deferred income tax asset | $ 9,286 | $ 10,674 |
Earnings Per Share - Reconciles
Earnings Per Share - Reconciles Numerator and Denominator of Basic and Diluted Earnings Per Share Computations (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Numerator for EPS: | |||||||||||
Net income | $ 36,396 | $ 9,964 | $ 29,376 | $ 31,199 | $ 13,655 | $ 26,882 | $ 33,647 | $ 25,226 | $ 106,935 | $ 99,410 | $ 106,484 |
Less: Preferred stock dividends | (10) | (10) | (10) | ||||||||
Income available to common stockholders | $ 106,925 | $ 99,400 | $ 106,474 | ||||||||
Denominator for EPS: | |||||||||||
Weighted average common shares outstanding | 34,841 | 34,919 | 34,799 | ||||||||
Plus: Assumed conversion of share-based compensation | 943 | 706 | 1,056 | ||||||||
Assumed conversion of preferred stock | 25 | 25 | 29 | ||||||||
Weighted average diluted common shares outstanding | 35,809 | 35,650 | 35,884 | ||||||||
Basic earnings per common share | $ 1.05 | $ 0.29 | $ 0.84 | $ 0.89 | $ 0.39 | $ 0.77 | $ 0.96 | $ 0.73 | $ 3.07 | $ 2.85 | $ 3.06 |
Diluted earnings per common share | $ 1.03 | $ 0.28 | $ 0.82 | $ 0.86 | $ 0.38 | $ 0.75 | $ 0.94 | $ 0.71 | $ 2.99 | $ 2.79 | $ 2.97 |
Weighted average number of antidilutive shares | 1,504 | 1,583 | 311 |
Other Comprehensive Income (L90
Other Comprehensive Income (Loss) - Components of Other Comprehensive Income (loss) Pre-Tax and After-Tax (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Equity [Abstract] | ||||
Net unrealized gains (losses) on investments available for sale arising during the period, Pre-tax | $ 2,773 | $ (1,594) | $ (2,480) | |
Less: Amounts reclassified from accumulated other comprehensive income (loss), Pre-tax | (2,570) | (2,294) | (1,060) | |
Net current period other comprehensive income (loss), Pre-tax | 203 | (3,888) | (3,540) | |
Net unrealized gains (losses) on investments available for sale arising during the period, Tax | 1,058 | (609) | (963) | |
Less: Amounts reclassified from accumulated other comprehensive income (loss), Tax | (982) | (877) | (406) | |
Net current period other comprehensive income (loss), Tax | 76 | (1,486) | (1,369) | |
Net unrealized gains (losses) on investments available for sale arising during the period, After-tax | 1,715 | (985) | (1,517) | |
Less: Amounts reclassified from accumulated other comprehensive income (loss), After-tax | (1,588) | (1,417) | (654) | |
Net current period other comprehensive income (loss), After-tax | [1] | $ 127 | $ (2,402) | $ (2,171) |
[1] | Represents change in fair value of available for sale investments, net of income tax provision of $76 thousand for the year ended December 31, 2017 and a change in fair value of available for sale investments, net of income tax benefit of $1,486 thousand and $1,369 thousand for the years ended December 31, 2016 and 2015, respectively. |
Other Comprehensive Income (L91
Other Comprehensive Income (Loss) - Reclassifications Out of Accumulated Other Comprehensive Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Net realized gains (losses) on investments | $ 2,570 | $ 2,294 | $ 1,060 | ||||||||
Income taxes, current | (63,549) | (63,473) | (68,539) | ||||||||
NET INCOME | $ 36,396 | $ 9,964 | $ 29,376 | $ 31,199 | $ 13,655 | $ 26,882 | $ 33,647 | $ 25,226 | 106,935 | 99,410 | 106,484 |
Accumulated Net Unrealized Investment Gain (Loss) [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Net realized gains (losses) on investments | 2,570 | 2,294 | 1,060 | ||||||||
Income taxes, current | (982) | (877) | (406) | ||||||||
NET INCOME | $ 1,588 | $ 1,417 | $ 654 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets Measured for at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities | $ 639,334 | $ 584,361 |
Equity securities | 62,215 | 50,803 |
Short-term investments | 10,000 | 5,002 |
Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 10,000 | 5,002 |
Total assets accounted for at fair value | 711,549 | 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 | 59,604 | 74,267 |
Fair Value, Measurements, Recurring | Corporate Bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities | 227,504 | 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 | 219,452 | 214,776 |
Fair Value, Measurements, Recurring | Municipal Bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities | 120,295 | 91,197 |
Fair Value, Measurements, Recurring | Redeemable Preferred Stock [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities | 12,479 | 12,691 |
Fair Value, Measurements, Recurring | Common Stock [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 18,811 | 93 |
Fair Value, Measurements, Recurring | Mutual Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 43,404 | 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 | 62,215 | 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 | 18,811 | 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 | 43,404 | 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 | 10,000 | 5,002 |
Total assets accounted for at fair value | 649,334 | 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 | 59,604 | 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 | 227,504 | 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 | 219,452 | 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 | 120,295 | 91,197 |
Level 2 [Member] | Fair Value, Measurements, Recurring | Redeemable Preferred Stock [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed maturities | $ 12,479 | $ 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 | Dec. 31, 2017 | Dec. 31, 2016 |
Surplus Note [Member] | ||
Fair Value Inputs Liabilities Quantitative Information [Line Items] | ||
Carrying Value | $ 12,868 | $ 14,338 |
Surplus Note [Member] | Level 3 [Member] | ||
Fair Value Inputs Liabilities Quantitative Information [Line Items] | ||
Estimated Fair Value | $ 11,630 | 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 |
Liability for Unpaid Losses a94
Liability for Unpaid Losses and Loss Adjustment Expenses - Additional Information (Detail) - USD ($) | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Claims Development [Line Items] | ||||
Prior year claims and claims adjustment expense | $ 27,499,000 | $ (4,690,000) | $ (301,000) | |
Increase of unpaid losses and loss adjustment expenses | 189,931,000 | (40,346,000) | (35,513,000) | |
Unpaid losses and loss adjustment expenses | 248,425,000 | 58,494,000 | 98,840,000 | $ 134,353,000 |
Reinsurance recoverable | $ 182,405,000 | 106,000 | $ 13,540,000 | $ 47,350,000 |
Insurance claim maximum settlement time | 1 year | |||
Initial case reserve for claims | $ 2,500 | |||
LAE case reserves | 0 | |||
Subrogation [Member] | ||||
Claims Development [Line Items] | ||||
Reserve for losses and loss adjustment expenses | $ 85,000,000 | $ 76,000,000 |
Liability for Unpaid Losses a95
Liability for Unpaid Losses and Loss Adjustment Expenses - Summary of Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Detail) $ in Thousands | Dec. 31, 2017USD ($)Claim | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) |
Claims Development [Line Items] | |||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 988,139 | ||||
Accident Year 2013 [Member] | |||||
Claims Development [Line Items] | |||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 91,065 | $ 88,493 | $ 96,012 | $ 96,993 | $ 100,111 |
Total of Incurred-but-Not-Reported Liabilities Plus Expected Development (Redundancy) on Reported Claims | $ (4,704) | ||||
Cumulative Number of Reported Claims | Claim | 20,440 | ||||
Accident Year 2014 [Member] | |||||
Claims Development [Line Items] | |||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 112,278 | 112,251 | 118,289 | $ 111,739 | |
Total of Incurred-but-Not-Reported Liabilities Plus Expected Development (Redundancy) on Reported Claims | $ (10,886) | ||||
Cumulative Number of Reported Claims | Claim | 22,420 | ||||
Accident Year 2015 [Member] | |||||
Claims Development [Line Items] | |||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 194,600 | 187,431 | $ 170,381 | ||
Total of Incurred-but-Not-Reported Liabilities Plus Expected Development (Redundancy) on Reported Claims | $ (15,635) | ||||
Cumulative Number of Reported Claims | Claim | 26,703 | ||||
Accident Year 2016 [Member] | |||||
Claims Development [Line Items] | |||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 286,252 | $ 269,814 | |||
Total of Incurred-but-Not-Reported Liabilities Plus Expected Development (Redundancy) on Reported Claims | $ (17,785) | ||||
Cumulative Number of Reported Claims | Claim | 39,885 | ||||
Accident Year 2017 [Member] | |||||
Claims Development [Line Items] | |||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 303,944 | ||||
Total of Incurred-but-Not-Reported Liabilities Plus Expected Development (Redundancy) on Reported Claims | $ 49,600 | ||||
Cumulative Number of Reported Claims | Claim | 93,080 |
Liability for Unpaid Losses a96
Liability for Unpaid Losses and Loss Adjustment Expenses - Summary of Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Claims Development [Line Items] | |||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 929,128 | ||||
All outstanding liabilities before 2013, net of reinsurance | (3,469) | ||||
Liabilities for claims and claim adjustment expenses, net of reinsurance | 55,542 | ||||
Accident Year 2013 [Member] | |||||
Claims Development [Line Items] | |||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 95,383 | $ 95,059 | $ 93,489 | $ 88,843 | $ 61,117 |
Accident Year 2014 [Member] | |||||
Claims Development [Line Items] | |||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 122,579 | 119,798 | 112,059 | $ 69,703 | |
Accident Year 2015 [Member] | |||||
Claims Development [Line Items] | |||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 208,592 | 191,481 | $ 115,328 | ||
Accident Year 2016 [Member] | |||||
Claims Development [Line Items] | |||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 297,374 | $ 204,122 | |||
Accident Year 2017 [Member] | |||||
Claims Development [Line Items] | |||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 205,200 |
Liability for Unpaid Losses a97
Liability for Unpaid Losses and Loss Adjustment Expenses - Reconciliation of Net Incurred and Paid Claims Development Tables to Liability for Unpaid Losses and LAE (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Insurance [Abstract] | ||||
Liabilities for unpaid claims and claim adjustment expenses, net of reinsurance | $ 55,542 | |||
Reinsurance recoverable on unpaid losses and LAE | 182,405 | $ 106 | $ 13,540 | $ 47,350 |
Unallocated claims adjustment expenses and other | 10,478 | |||
Total gross liability for unpaid claims and claim adjustment expense | $ 248,425 | $ 58,494 | $ 98,840 | $ 134,353 |
Liability for Unpaid Losses a98
Liability for Unpaid Losses and Loss Adjustment Expenses - Supplementary Information About Average Historical Claims Duration (Detail) | Dec. 31, 2017 |
Insurance [Abstract] | |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year one | 51.00% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year two | 17.70% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year three | 11.20% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year four | 9.10% |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance, Year five | 6.60% |
Liability for Unpaid Losses a99
Liability for Unpaid Losses and Loss Adjustment Expenses - Change in Liability for Unpaid Losses and LAE (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Insurance [Abstract] | |||
Balance at beginning of year | $ 58,494 | $ 98,840 | $ 134,353 |
Less: Reinsurance recoverable | (106) | (13,540) | (47,350) |
Net balance at beginning of period | 58,388 | 85,300 | 87,003 |
Incurred (recovered) related to current year | 322,929 | 305,919 | 188,040 |
Incurred (recovered) related to prior years | 27,499 | (4,690) | (301) |
Total incurred | 350,428 | 301,229 | 187,739 |
Paid related to Current year | 215,274 | 229,761 | 123,952 |
Paid related to Prior years | 127,522 | 98,380 | 65,490 |
Total paid | 342,796 | 328,141 | 189,442 |
Net balance at end of period | 66,020 | 58,388 | 85,300 |
Plus: Reinsurance recoverable | 182,405 | 106 | 13,540 |
Balance at end of year | $ 248,425 | $ 58,494 | $ 98,840 |
Quarterly Results for 2017 a100
Quarterly Results for 2017 and 2016 - Summary of Quarterly Results for the Periods Presented (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Premiums earned, net | $ 183,708 | $ 174,517 | $ 169,009 | $ 161,559 | $ 163,973 | $ 159,534 | $ 156,461 | $ 152,448 | $ 688,793 | $ 632,416 | $ 503,999 |
Investment income | 4,448 | 3,085 | 3,223 | 2,704 | 3,489 | 2,304 | 2,142 | 1,605 | 13,460 | 9,540 | 5,155 |
Total revenues | 201,312 | 190,243 | 185,487 | 174,874 | 178,605 | 172,436 | 169,802 | 164,446 | 751,916 | 685,289 | 546,544 |
Total expenses | 142,721 | 173,644 | 137,564 | 127,503 | 155,878 | 128,273 | 114,908 | 123,347 | 581,432 | 522,406 | 371,521 |
Net income | $ 36,396 | $ 9,964 | $ 29,376 | $ 31,199 | $ 13,655 | $ 26,882 | $ 33,647 | $ 25,226 | $ 106,935 | $ 99,410 | $ 106,484 |
Basic earnings per share | $ 1.05 | $ 0.29 | $ 0.84 | $ 0.89 | $ 0.39 | $ 0.77 | $ 0.96 | $ 0.73 | $ 3.07 | $ 2.85 | $ 3.06 |
Diluted earnings per share | $ 1.03 | $ 0.28 | $ 0.82 | $ 0.86 | $ 0.38 | $ 0.75 | $ 0.94 | $ 0.71 | $ 2.99 | $ 2.79 | $ 2.97 |
Quarterly Results for 2017 a101
Quarterly Results for 2017 and 2016 - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Schedule of Quarterly Financial Information [Line Items] | |||||||||||
Percentage of increase in net income | 166.50% | ||||||||||
Increase in net income during period | $ 22,700 | ||||||||||
Net income | $ 36,396 | $ 9,964 | $ 29,376 | $ 31,199 | $ 13,655 | $ 26,882 | $ 33,647 | $ 25,226 | $ 106,935 | $ 99,410 | $ 106,484 |
Hurricane [Member] | |||||||||||
Schedule of Quarterly Financial Information [Line Items] | |||||||||||
Weather event losses | $ 26,600 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - $ / shares | Jan. 22, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Subsequent Event [Line Items] | ||||||||||||||||
Cash dividend declared per common share | $ 0.27 | $ 0.14 | $ 0.14 | $ 0.14 | $ 0.27 | $ 0.14 | $ 0.14 | $ 0.14 | $ 0.27 | $ 0.12 | $ 0.12 | $ 0.12 | $ 0.69 | $ 0.69 | $ 0.63 | |
Subsequent Event [Member] | ||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||
Dividend declared date | Jan. 22, 2018 | |||||||||||||||
Cash dividend declared per common share | $ 0.14 | |||||||||||||||
Dividend payable date | Mar. 12, 2018 | |||||||||||||||
Dividends payable, shareholders record date | Feb. 28, 2018 |
Schedule II - Condensed Fina103
Schedule II - Condensed Financial Information of Registrant - Condensed Balance Sheets (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
ASSETS | ||||
Cash and cash equivalents | $ 213,486 | $ 105,730 | $ 197,014 | $ 115,397 |
Fixed maturities, at fair value | 639,334 | 584,361 | ||
Equity securities, at fair value | 62,215 | 50,803 | ||
Income taxes recoverable | 9,472 | 3,262 | ||
Deferred income taxes | 9,286 | 10,674 | ||
Other assets | 12,461 | 10,707 | ||
Total assets | 1,454,999 | 1,060,007 | ||
LIABILITIES: | ||||
Accounts payable | 2,866 | 3,187 | ||
Other accrued expenses | 45,096 | 37,665 | ||
Total liabilities | 1,015,011 | 688,817 | ||
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 – 45,778 and 45,324 Outstanding shares – 34,735 and 35,052 | 458 | 453 | ||
Treasury shares, at cost - 11,043 and 10,272 | (105,123) | (86,982) | ||
Additional paid-in capital | 86,186 | 82,263 | ||
Accumulated other comprehensive income (loss), net of taxes | (6,281) | (6,408) | ||
Retained earnings | 464,748 | 381,864 | ||
Total stockholders' equity | 439,988 | 371,190 | 293,092 | 199,916 |
Total liabilities and stockholders' equity | 1,454,999 | 1,060,007 | ||
Parent Company [Member] | ||||
ASSETS | ||||
Cash and cash equivalents | 67,509 | 3,951 | $ 2,046 | $ 14,890 |
Investments in subsidiaries and undistributed earnings | 359,847 | 362,759 | ||
Fixed maturities, at fair value | 3,111 | 3,003 | ||
Equity securities, at fair value | 5,238 | 625 | ||
Income taxes recoverable | 9,472 | 3,262 | ||
Deferred income taxes | 9,286 | 10,674 | ||
Other assets | 431 | 1,003 | ||
Total assets | 454,894 | 385,277 | ||
LIABILITIES: | ||||
Accounts payable | 4 | 50 | ||
Dividends payable | 40 | |||
Other accrued expenses | 14,862 | 14,037 | ||
Total liabilities | 14,906 | 14,087 | ||
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 – 45,778 and 45,324 Outstanding shares – 34,735 and 35,052 | 458 | 453 | ||
Treasury shares, at cost - 11,043 and 10,272 | (105,123) | (86,982) | ||
Additional paid-in capital | 86,186 | 82,263 | ||
Accumulated other comprehensive income (loss), net of taxes | (6,281) | (6,408) | ||
Retained earnings | 464,748 | 381,864 | ||
Total stockholders' equity | 439,988 | 371,190 | ||
Total liabilities and stockholders' equity | $ 454,894 | $ 385,277 |
Schedule II - Condensed Fina104
Schedule II - Condensed Financial Information of Registrant - Condensed Balance Sheets (Parenthetical) (Detail) - $ / shares | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | ||||
Cumulative convertible preferred stock, par value | $ 0.01 | $ 0.01 | ||
Cumulative convertible preferred stock, shares authorized | 1,000,000 | 1,000,000 | ||
Cumulative convertible preferred stock, shares issued | 10,000 | 10,000 | ||
Cumulative convertible preferred stock, shares outstanding | 10,000 | 10,000 | ||
Cumulative convertible preferred stock, minimum liquidation preference | $ 9.99 | $ 9.99 | ||
Common stock, par value | $ 0.01 | $ 0.01 | ||
Common stock, shares authorized | 55,000,000 | 55,000,000 | ||
Common stock, shares issued | 45,778,000 | 45,324,000 | 45,525,000 | 44,769,000 |
Common stock, shares outstanding | 34,735,000 | 35,052,000 | 35,110,000 | 35,102,000 |
Treasury stock, shares | 11,043,000 | 10,272,000 | 10,415,000 | 9,667,000 |
Schedule II - Condensed Fina105
Schedule II - Condensed Financial Information of Registrant - Condensed Statements of Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
PREMIUMS EARNED AND OTHER REVENUES | |||||||||||
Net investment income (expense) | $ 4,448 | $ 3,085 | $ 3,223 | $ 2,704 | $ 3,489 | $ 2,304 | $ 2,142 | $ 1,605 | $ 13,460 | $ 9,540 | $ 5,155 |
Net realized gains (losses) on investments | 2,570 | 2,294 | 1,060 | ||||||||
Other revenue | 7,002 | 6,426 | 6,020 | ||||||||
Total premiums earned and other revenues | 201,312 | 190,243 | 185,487 | 174,874 | 178,605 | 172,436 | 169,802 | 164,446 | 751,916 | 685,289 | 546,544 |
OPERATING COSTS AND EXPENSES | |||||||||||
General and administrative expenses | 231,004 | 221,177 | 183,782 | ||||||||
Total operating costs and expenses | 142,721 | 173,644 | 137,564 | 127,503 | 155,878 | 128,273 | 114,908 | 123,347 | 581,432 | 522,406 | 371,521 |
INCOME BEFORE INCOME TAXES | 170,484 | 162,883 | 175,023 | ||||||||
Benefit from income taxes | 63,549 | 63,473 | 68,539 | ||||||||
NET INCOME | $ 36,396 | $ 9,964 | $ 29,376 | $ 31,199 | $ 13,655 | $ 26,882 | $ 33,647 | $ 25,226 | 106,935 | 99,410 | 106,484 |
Parent Company [Member] | |||||||||||
PREMIUMS EARNED AND OTHER REVENUES | |||||||||||
Net investment income (expense) | 259 | (35) | 22 | ||||||||
Net realized gains (losses) on investments | 255 | 667 | 66 | ||||||||
Management fee | 151 | 138 | 140 | ||||||||
Other revenue | 12 | 80 | |||||||||
Total premiums earned and other revenues | 677 | 850 | 228 | ||||||||
OPERATING COSTS AND EXPENSES | |||||||||||
General and administrative expenses | 30,819 | 35,342 | 48,056 | ||||||||
Total operating costs and expenses | 30,819 | 35,342 | 48,056 | ||||||||
INCOME BEFORE INCOME TAXES | (30,142) | (34,492) | (47,828) | ||||||||
Benefit from income taxes | (18,296) | (12,055) | (17,495) | ||||||||
LOSS BEFORE EQUITY IN NET EARNINGS OF SUBSIDIARIES | (11,846) | (22,437) | (30,333) | ||||||||
Equity in net income of subsidiaries | 118,781 | 121,847 | 136,817 | ||||||||
NET INCOME | $ 106,935 | $ 99,410 | $ 106,484 |
Schedule II - Condensed Fina106
Schedule II - Condensed Financial Information of Registrant - Condensed Statements of Cash Flows (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash flows from operating activities: | |||||||||||
Net income | $ 36,396 | $ 9,964 | $ 29,376 | $ 31,199 | $ 13,655 | $ 26,882 | $ 33,647 | $ 25,226 | $ 106,935 | $ 99,410 | $ 106,484 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||||||||||
Depreciation | 4,058 | 3,242 | 2,033 | ||||||||
Amortization of share-based compensation | 10,515 | 10,288 | 17,386 | ||||||||
Amortization of original issue discount on debt | 10 | 149 | 521 | ||||||||
Accretion of deferred credit | (149) | (521) | |||||||||
Net realized (gains) losses on investments | (2,570) | (2,294) | (1,060) | ||||||||
Deferred income taxes | 1,309 | 4,724 | (693) | ||||||||
Excess tax benefits from share-based compensation | (5,793) | 1,154 | (5,310) | ||||||||
Issuance of common stock | 634 | ||||||||||
Net change in assets and liabilities relating to operating activities: | |||||||||||
Income taxes recoverable | (417) | 1,004 | 255 | ||||||||
Income taxes payable | 3,510 | ||||||||||
Other liabilities and accrued expenses | 9,287 | (505) | 625 | ||||||||
Net cash provided by (used in) operating activities | 245,010 | 121,396 | 219,271 | ||||||||
Cash flows from investing activities: | |||||||||||
Purchases of equity securities, available for sale | (89,302) | (66,688) | (65,038) | ||||||||
Purchase of fixed maturities, available for sale | (180,604) | (320,131) | (178,198) | ||||||||
Proceeds from sales of equity securities, available for sale | 77,640 | 60,558 | 41,456 | ||||||||
Proceeds from sales of fixed maturities, available for sale | 26,179 | 86,018 | 38,379 | ||||||||
Net cash provided by (used in) investing activities | (85,709) | (174,311) | (83,052) | ||||||||
Cash flows from financing activities: | |||||||||||
Repayment of debt | (2,170) | (2,136) | (8,470) | ||||||||
Preferred stock dividend | (10) | (10) | (10) | ||||||||
Common stock dividend | (24,001) | (24,192) | (22,287) | ||||||||
Issuance of common stock for stock option exercises | 119 | 511 | |||||||||
Purchase of treasury stock | (18,141) | (8,510) | (18,649) | ||||||||
Sale of treasury stock | 2,965 | ||||||||||
Purchase of preferred stock | (256) | ||||||||||
Payments related to tax withholding for share-based compensation | (7,223) | (5,451) | (12,141) | ||||||||
Excess tax benefits (shortfall) from share-based compensation | (1,154) | 5,310 | |||||||||
Net cash provided by (used in) financing activities | (51,545) | (38,369) | (54,602) | ||||||||
Net increase (decrease) in cash and cash equivalents | 107,756 | (91,284) | 81,617 | ||||||||
Cash and cash equivalents at beginning of period | 105,730 | 197,014 | 105,730 | 197,014 | 115,397 | ||||||
Cash and cash equivalents at end of period | 213,486 | 105,730 | 213,486 | 105,730 | 197,014 | ||||||
Parent Company [Member] | |||||||||||
Cash flows from operating activities: | |||||||||||
Net income | 106,935 | 99,410 | 106,484 | ||||||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||||||||||
Equity in net income of subsidiaries | (118,781) | (121,847) | (136,817) | ||||||||
Distribution of income from subsidiaries | 122,156 | 46,914 | 58,224 | ||||||||
Depreciation | 3 | 2 | 4 | ||||||||
Amortization of share-based compensation | 10,515 | 10,288 | 17,386 | ||||||||
Amortization of original issue discount on debt | 10 | 149 | 521 | ||||||||
Accretion of deferred credit | (149) | (521) | |||||||||
Net realized (gains) losses on investments | (255) | (667) | (66) | ||||||||
Deferred income taxes | 1,309 | 4,724 | (693) | ||||||||
Excess tax benefits from share-based compensation | (5,793) | 1,154 | (5,310) | ||||||||
Issuance of common stock | 634 | ||||||||||
Net change in assets and liabilities relating to operating activities: | |||||||||||
Income taxes recoverable | (417) | 1,004 | 255 | ||||||||
Income taxes payable | 3,510 | ||||||||||
Other operating assets and liabilities | 574 | (596) | (1,338) | ||||||||
Other liabilities and accrued expenses | 778 | (2,896) | |||||||||
Net cash provided by (used in) operating activities | 117,668 | 37,490 | 41,639 | ||||||||
Cash flows from investing activities: | |||||||||||
Purchases of equity securities, available for sale | (4,990) | (2,037) | (1,442) | ||||||||
Purchase of fixed maturities, available for sale | (3,000) | (3,000) | |||||||||
Proceeds from sales of equity securities, available for sale | 3,255 | 2,456 | 1,481 | ||||||||
Proceeds from sales of fixed maturities, available for sale | 3,229 | ||||||||||
Net cash provided by (used in) investing activities | (4,735) | 648 | 39 | ||||||||
Cash flows from financing activities: | |||||||||||
Repayment of debt | (7,000) | ||||||||||
Preferred stock dividend | (10) | (10) | (10) | ||||||||
Common stock dividend | (24,001) | (24,192) | (22,287) | ||||||||
Issuance of common stock for stock option exercises | 119 | 511 | |||||||||
Purchase of treasury stock | (18,141) | (8,510) | (18,649) | ||||||||
Sale of treasury stock | 2,965 | ||||||||||
Purchase of preferred stock | (256) | ||||||||||
Payments related to tax withholding for share-based compensation | (7,223) | (5,451) | (12,141) | ||||||||
Excess tax benefits (shortfall) from share-based compensation | (1,154) | 5,310 | |||||||||
Net cash provided by (used in) financing activities | (49,375) | (36,233) | (54,522) | ||||||||
Net increase (decrease) in cash and cash equivalents | 63,558 | 1,905 | (12,844) | ||||||||
Cash and cash equivalents at beginning of period | $ 3,951 | $ 2,046 | 3,951 | 2,046 | 14,890 | ||||||
Cash and cash equivalents at end of period | $ 67,509 | $ 3,951 | $ 67,509 | $ 3,951 | $ 2,046 |
Schedule II - Condensed Fina107
Schedule II - Condensed Financial Information of Registrant - General - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statutory Accounting Practices [Line Items] | |||
Capital contributions to subsidiaries | $ 0 | $ 0 | |
UPCIC [Member] | |||
Statutory Accounting Practices [Line Items] | |||
Dividend paid to immediate parent company | 30,000,000 | $ 0 | 0 |
APPCIC [Member] | |||
Statutory Accounting Practices [Line Items] | |||
Dividend paid to immediate parent company | 0 | 0 | 0 |
Capital contributions to subsidiaries | $ 0 | $ 2,000,000 | $ 0 |
Schedule II - Condensed Fina108
Schedule II - Condensed Financial Information of Registrant - Subsequent Events - Additional Information (Detail) - $ / shares | Jan. 22, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Subsequent Event [Line Items] | ||||||||||||||||
Dividends per share declared on outstanding common stock | $ 0.27 | $ 0.14 | $ 0.14 | $ 0.14 | $ 0.27 | $ 0.14 | $ 0.14 | $ 0.14 | $ 0.27 | $ 0.12 | $ 0.12 | $ 0.12 | $ 0.69 | $ 0.69 | $ 0.63 | |
Subsequent Event [Member] | ||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||
Dividends per share declared on outstanding common stock | $ 0.14 | |||||||||||||||
Dividend payable date | Mar. 12, 2018 | |||||||||||||||
Dividends payable, shareholders record date | Feb. 28, 2018 | |||||||||||||||
Dividend declared date | Jan. 22, 2018 | |||||||||||||||
Subsequent Event [Member] | Parent Company [Member] | ||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||
Dividends per share declared on outstanding common stock | $ 0.14 | |||||||||||||||
Dividend payable date | Mar. 12, 2018 | |||||||||||||||
Dividends payable, shareholders record date | Feb. 28, 2018 | |||||||||||||||
Dividend declared date | Jan. 22, 2018 |
Schedule V - Valuation Allow109
Schedule V - Valuation Allowances and Qualifying Accounts (Detail) - Allowance for Doubtful Accounts [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Beginning Balance | $ 527 | $ 344 | $ 357 |
Charges to Earnings | 505 | 397 | 395 |
Deductions | 352 | 214 | 408 |
Ending Balance | $ 680 | $ 527 | $ 344 |
Schedule VI - Supplemental I110
Schedule VI - Supplemental Information Concerning Consolidated Property and Casualty Insurance Operations (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Supplemental Information For Property Casualty Insurance Underwriters [Abstract] | ||||||||||||
Reserves for Unpaid Losses and LAE | $ 248,425 | $ 58,494 | $ 248,425 | $ 58,494 | $ 98,840 | $ 134,353 | ||||||
Incurred Loss and LAE Current Year | 322,929 | 305,919 | 188,040 | |||||||||
Incurred Loss and LAE Prior Years | 27,499 | (4,690) | (301) | |||||||||
Paid Losses and LAE | 342,796 | 328,141 | 189,442 | |||||||||
Net Investment Income | 4,448 | $ 3,085 | $ 3,223 | $ 2,704 | 3,489 | $ 2,304 | $ 2,142 | $ 1,605 | 13,460 | 9,540 | 5,155 | |
Deferred Policy Acquisition Cost ("DPAC") | 73,059 | 64,912 | 73,059 | 64,912 | 60,019 | $ 25,660 | ||||||
Amortization of DPAC | (136,702) | (125,350) | (87,871) | |||||||||
Net Premiums Written | 737,060 | 656,094 | 626,448 | |||||||||
Net Premiums Earned | 183,708 | $ 174,517 | $ 169,009 | $ 161,559 | 163,973 | $ 159,534 | $ 156,461 | $ 152,448 | 688,793 | 632,416 | 503,999 | |
Unearned premiums | $ 532,444 | $ 475,756 | $ 532,444 | $ 475,756 | $ 442,366 |