Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Jun. 30, 2014 | Mar. 01, 2015 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | BALDWIN & LYONS INC | ||
Entity Central Index Key | 9346 | ||
Current Fiscal Year End Date | -19 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Public Float | $253,547,000 | ||
Entity Information [Line Items] | |||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 31-Dec-14 | ||
Class A (voting) [Member] | |||
Entity Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 2,623,109 | ||
Class B (non-voting) [Member] | |||
Entity Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 12,397,344 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Investments: | ||
Fixed maturities | $451,809 | $431,550 |
Equity securities | 162,107 | 145,828 |
Limited partnerships | 81,230 | 68,988 |
Short-term and other | 2,966 | 4,891 |
Total Investments | 698,112 | 651,257 |
Cash and cash equivalents | 64,632 | 59,297 |
Accounts receivable--less allowance (2014, $605; 2013, $615) | 98,144 | 100,830 |
Accrued investment income | 3,682 | 3,448 |
Reinsurance recoverable | 220,221 | 195,568 |
Prepaid reinsurance premiums | 2,274 | 1,057 |
Deferred policy acquisition costs | 2,263 | 2,319 |
Property and equipment--less accumulated depreciation $(2014, 13,777; 2013, $15,835) | 43,815 | 36,329 |
Other assets | 9,413 | 19,051 |
Current federal income taxes recoverable | 1,691 | 3,114 |
Total Assets | 1,144,247 | 1,072,270 |
Reserves: | ||
Losses and loss expenses | 506,102 | 474,470 |
Unearned premiums | 35,019 | 36,693 |
Total Reserves | 541,121 | 511,163 |
Reinsurance payable | 46,338 | 39,122 |
Short-term borrowings | 20,000 | 10,000 |
Depository liabilities | 48,893 | 57,544 |
Accounts payable and other liabilities | 68,426 | 55,866 |
Deferred federal income taxes | 19,973 | 16,851 |
Total Liabilities | 744,751 | 690,546 |
Shareholders' equity: | ||
Additional paid-in capital | 51,854 | 50,594 |
Unrealized net gains on investments | 51,840 | 49,089 |
Foreign exchange adjustment | 390 | 1,401 |
Retained earnings | 294,773 | 280,003 |
Shareholders' equity | 399,496 | 381,724 |
Total liabilities and shareholders' equity | 1,144,247 | 1,072,270 |
Class A (voting) [Member] | ||
Shareholders' equity: | ||
Common stock | 112 | 112 |
Class B (non-voting) [Member] | ||
Shareholders' equity: | ||
Common stock | $527 | $525 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Assets | ||
Account receivable, allowance | $605 | $615 |
Property and equipment, accumulated depreciation | $13,777 | $15,835 |
Class A (voting) [Member] | ||
Shareholders' equity: | ||
Common stock, par value (in dollars per share) | $0 | $0 |
Common stock, shares authorized (in shares) | 3,000,000 | 3,000,000 |
Common stock, shares outstanding (in shares) | 2,623,109 | 2,623,109 |
Class B (non-voting) [Member] | ||
Shareholders' equity: | ||
Common stock, par value (in dollars per share) | $0 | $0 |
Common stock, shares authorized (in shares) | 20,000,000 | 20,000,000 |
Common stock, shares outstanding (in shares) | 12,356,389 | 12,304,191 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenues: | |||
Net premiums earned | $261,627 | $252,743 | $237,461 |
Net investment income | 9,055 | 8,770 | 9,930 |
Commissions and other income | 6,430 | 5,944 | 5,722 |
Net realized gains on investments, excluding impairment losses | 15,619 | 24,257 | 9,899 |
Total other-than-temporary impairment losses on investments | -689 | -744 | -894 |
Portion of other-than-temporary impairment losses recognized in other comprehensive income | 0 | 2 | 6 |
Net realized gains on investments | 14,930 | 23,515 | 9,011 |
Total revenue | 292,042 | 290,972 | 262,124 |
Expenses: | |||
Losses and loss expenses incurred | 159,596 | 150,701 | 138,088 |
Other operating expenses | 88,048 | 85,361 | 77,430 |
Total expenses | 247,644 | 236,062 | 215,518 |
Income before federal income taxes | 44,398 | 54,910 | 46,606 |
Federal income taxes | 14,681 | 18,322 | 14,687 |
Net income | $29,717 | $36,588 | $31,919 |
Per share data: | |||
Basic and diluted earnings (in dollars per share) | $1.98 | $2.45 | $2.15 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Consolidated Statements of Comprehensive Income [Abstract] | |||
Net income | $29,717 | $36,588 | $31,919 |
Unrealized net gains on securities: | |||
Unrealized holding net gains arising during the period | 7,835 | 23,711 | 10,148 |
Less: reclassification adjustment for net gains included in net income | -5,084 | -10,089 | -1,273 |
Change in unrealized gains on investments | 2,751 | 13,622 | 8,875 |
Foreign currency translation adjustments | -1,011 | -575 | 217 |
Other comprehensive income | 1,740 | 13,047 | 9,092 |
Comprehensive income | $31,457 | $49,635 | $41,011 |
Consolidated_Statements_of_Sha
Consolidated Statements of Shareholders' Equity (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Shareholders' equity at beginning of year | $381,724 | $346,712 | $319,061 |
Net income | 29,717 | 36,588 | 31,919 |
Other comprehensive income | 1,740 | 13,047 | 9,092 |
Cash dividends paid to shareholders | -14,947 | -14,943 | -14,886 |
Issuance of common stock | 1,262 | 320 | 1,526 |
Shareholders' equity at end of year: | $399,496 | $381,724 | $346,712 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Operating activities | |||
Net income | $29,717 | $36,588 | $31,919 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Change in accounts receivable and unearned premium | 3,230 | -16,488 | -13,089 |
Change in accrued investment income | -234 | 939 | -50 |
Change in reinsurance recoverable on paid losses | -2,785 | -1,618 | 537 |
Change in losses and loss expenses reserves net of reinsurance | 7,545 | -1,264 | -2,289 |
Change in other assets, other liabilities and current income taxes | -4,847 | 29,892 | 29,850 |
Amortization of net policy acquisition costs | 25,075 | 26,592 | 26,772 |
Net policy acquisition costs deferred | -25,019 | -25,819 | -25,285 |
Provision for deferred income taxes | 1,640 | 939 | 3,868 |
Bond amortization | 4,235 | 5,068 | 6,055 |
(Gain) loss on sale of property | 474 | -27 | 10 |
Depreciation | 4,797 | 4,300 | 4,981 |
Net realized gains on investments | -14,930 | -23,515 | -9,011 |
Compensation expense related to restricted stock | 1,262 | 320 | 1,526 |
Net cash provided by operating activities | 30,160 | 35,907 | 55,794 |
Investing activities | |||
Purchases of fixed maturities and equity securities | -288,283 | -369,259 | -320,434 |
Purchases of limited partnership interests | -6,886 | -3,568 | -2,154 |
Distributions from limited partnerships | 1,752 | 2,528 | 3,957 |
Proceeds from maturities | 98,714 | 129,113 | 150,652 |
Proceeds from sales of fixed maturities | 167,406 | 207,723 | 103,106 |
Proceeds from sales of equity securities | 19,263 | 29,858 | 8,674 |
Net sales (purchases) of short-term investments | 1,925 | -690 | -529 |
Decrease in principal of notes receivable from employees | 0 | 0 | 1,252 |
Purchases of property and equipment | -13,451 | -28,607 | -4,054 |
Proceeds from disposals of property and equipment | 693 | 261 | 228 |
Net cash used in investing activities | -18,867 | -32,641 | -59,302 |
Financing activities | |||
Dividends paid to shareholders | -14,947 | -14,943 | -14,886 |
Drawings on line of credit | 10,000 | 0 | 0 |
Net cash used in financing activities | -4,947 | -14,943 | -14,886 |
Effect of foreign exchange rates on cash and cash equivalents | -1,011 | -575 | 217 |
Increase (decrease) in cash and cash equivalents | 5,335 | -12,252 | -18,177 |
Cash and cash equivalents at beginning of year | 59,297 | 71,549 | 89,726 |
Cash and cash equivalents at end of year | $64,632 | $59,297 | $71,549 |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2014 | |
Summary of Significant Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note A - Summary of Significant Accounting Policies |
Basis of Presentation: The consolidated financial statements include the accounts of Baldwin & Lyons, Inc. and its wholly owned subsidiaries (the “Company"). All significant inter-company transactions and accounts have been eliminated in consolidation. | |
Use of Estimates: Preparation of the consolidated financial statements requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results will differ from those estimates. | |
Cash and Cash Equivalents: The Company considers investments in money market funds to be cash equivalents. Carrying amounts for these instruments approximate their fair values. | |
Investments: Carrying amounts for fixed maturity securities represent fair value and are based on quoted market prices, where available, or broker/dealer quotes for specific securities where quoted market prices are not available. Equity securities are carried at quoted market prices (fair value). The Company accounts for investments in limited partnerships using the equity method of accounting, which requires an investor in a limited partnership to record its proportionate share of the limited partnership’s net income. To the extent that the limited partnership investees include both realized and unrealized investment gains or losses in the determination of net income or loss, then the Company would also recognize, through its statements of operations, its proportionate share of the investee’s unrealized as well as realized investment gains or losses. | |
Other investments, if any, are carried at either market value or cost, depending on the nature of the investment. Short-term investments are carried at cost, which approximates their fair values. | |
Realized gains and losses on disposals of investments are determined by specific identification of cost of investments sold and are included in income. All fixed maturity and equity securities are considered to be available for sale; the related unrealized net gains or losses (net of applicable tax effect) are reflected directly in shareholders’ equity. Included within available for sale fixed maturity securities are insurance linked securities and convertible debt securities. The changes in fair values of insurance-linked securities and portions of the changes in fair values of convertible debt securities are reflected as a component of net realized gains (losses) on investments. | |
In accordance with the Financial Accounting Standard Board’s (“FASB”) other-than-temporary impairment (“OTTI”) guidance, if a fixed maturity security is in an unrealized loss position and the Company has the intent to sell the fixed maturity security, or it is more likely than not that the Company will have to sell the fixed maturity security before recovery of its amortized cost basis, the decline in value is deemed to be other-than-temporary and is recorded to net realized losses on investments in the consolidated statements of operations. For impaired fixed maturity securities that the Company does not intend to sell or in cases where it is more likely than not that the Company will not have to sell such securities, but the Company expects that it will not fully recover the amortized cost basis, the credit component of the other-than-temporary impairment is recognized in net realized losses on investments in the consolidated statements of operations and the non-credit component of the other-than-temporary impairment is recognized directly in shareholder’s equity (accumulated other comprehensive income). | |
The credit component of an other-than-temporary impairment is determined by comparing the net present value of projected future cash flows with the amortized cost basis of the fixed maturity security. The net present value is calculated by discounting the Company’s best estimate of projected future cash flows at the appropriate effective interest rate. | |
The unrealized net gains or losses (net of applicable tax effect) related to equity securities are reflected directly in shareholders’ equity, unless a decline in value is determined to be other-than-temporary, in which case the loss is charged to income. In determining if and when a decline in market value below cost is other-than-temporary, an objective analysis is made of each individual security where current market value is less than cost. For any equity security where the unrealized loss exceeds 20% of original or adjusted cost, and where that decline has existed for a period of at least six months, the decline is treated as an other-than-temporary impairment. Additionally, the Company takes into account any known subjective information in evaluating for impairment, without consideration to the Company’s quantitative criteria defined above, as well as the Company’s intent and ability to retain the equity security for a period of time sufficient to allow for such recovery in fair value. | |
Property and Equipment: Property and equipment are carried at cost, less accumulated depreciation. Depreciation is computed principally by the straight-line method. | |
Goodwill and Other Intangible Assets: Goodwill is not amortized. Rather, it is tested for impairment in accordance with FASB guidance, at the reporting-unit level. Goodwill is tested annually (during the fourth quarter) or more often if events or circumstances, such as adverse changes in the business climate, indicate there may be impairment. Intangible assets determined to have finite lives, such as customer relationships and employment agreements, are amortized over their estimated useful lives in a manner that best reflects the economic benefits of the intangible asset. In addition, impairment testing is performed on these amortizing intangible assets if impairment indicators are noted. | |
Reserves for Losses and Loss Expenses: The reserves for losses and loss expenses, minor portions of which are discounted, are determined using case basis evaluations and statistical analyses and represent estimates of the ultimate cost of all reported and unreported losses which are unpaid at year end. These reserves include estimates of future trends in claim severity and frequency and other factors which could vary as the losses are ultimately settled. While actual results will differ from such estimates, management believes that the reserves for losses and loss expenses are adequate. The estimates are continually reviewed and as adjustments to these reserves become necessary, such adjustments are reflected in current operations. | |
Recognition of Revenue and Costs: Premiums are earned over the period for which insurance protection is provided. A reserve for unearned premiums, computed by the daily pro-rata method, is established to reflect amounts applicable to subsequent accounting periods. Commissions to unaffiliated companies and premium taxes applicable to unearned premiums are deferred and expensed as the related premiums are earned. The Company does not defer acquisition costs which are not directly variable with the production of premium. If it is determined that expected losses and deferred expenses will likely exceed the related unearned premiums, the asset representing deferred policy acquisition costs is reduced and an expense is charged against current operations to reflect any such premium deficiency. In the event that the expected premium deficiency exceeds deferred policy acquisition costs, an additional liability would be recorded with a corresponding expense to current operations for the amount of the excess premium deficiency. Anticipated investment income is considered in determining recoverability of deferred acquisition costs. | |
Reinsurance: Reinsurance premiums, commissions, expense reimbursements and reserves related to reinsured business are accounted for on bases consistent with those used in accounting for the original policies issued and the terms of the reinsurance contracts. Premiums ceded to other insurers have been reported as a reduction of premium earned. Amounts applicable to reinsurance ceded for unearned premium and claim loss reserves have been reported as reinsurance recoverable assets. Certain reinsurance contracts provide for additional or return premiums and commissions based upon profits or losses to the reinsurer over prescribed periods. Estimates of additional or return premiums and commissions are adjusted quarterly to recognize actual loss experience to date as well as projected loss experience applicable to the various contract periods. Estimates of reinstatement premiums on reinsurance contracts covering catastrophic events are, to the extent reasonably determinable, recorded concurrently with the related loss. | |
Should impairment in the ability of a reinsurer to satisfy its obligations to the Company be determined to exist, current year operations would be charged in amounts sufficient to provide for the Company’s additional liability. Such charges, when incurred, are included in other operating expenses, rather than losses and loss expenses incurred, since the inability of the Company to collect from reinsurers is a credit risk rather than a deficiency associated with the loss reserving process. | |
The Company accounts for foreign and domestic reinsurance using the periodic method. Under the periodic method, premiums are recognized as revenue ratably over the contract term, and claims, including an estimate of claims incurred but not reported, are recognized as they occur. | |
Deferred Taxes: Deferred income tax assets and liabilities are recognized for temporary differences between the financial statement and tax return bases of assets and liabilities based on enacted tax rates and laws. The deferred tax benefits of the deferred tax assets are recognized to the extent realization of such benefits is more likely than not. Deferred income tax expense or benefit generally represents the net change in deferred income tax assets and liabilities during the year. Current income tax expense represents the tax liability associated with revenues and expenses currently taxable or deductible on various income tax returns for the year reported. | |
Restricted Stock: Restricted shares vest ratably over the vesting period from the date of grant and are accelerated for retirement eligible recipients in accordance with the non-substantive post-grant date vesting clause of Accounting Standard Codification (“ASC”) 715, Compensation-Retirement Benefits. Restricted stock is valued based on the closing price of the stock on the day the award is granted. Non-vested restricted shares will be forfeited should an executive’s employment terminate for any reason other than death, disability, or retirement as defined by the Compensation Committee. | |
Earnings Per Share: Diluted earnings per share of common stock are based on the average number of shares of Class A and Class B common stock outstanding during the year, adjusted for the dilutive effect, if any, of restricted stock awards outstanding. Basic earnings per share are presented exclusive of the effect of share-based awards outstanding. | |
Comprehensive Income: The Company records accumulated other comprehensive income from unrealized gains and losses on available-for-sale securities as a separate component of shareholders’ equity. Foreign exchange adjustments are generally not material and the Company has no defined benefit pension plan. A reclassification adjustment to other comprehensive income is made for gains or losses during the period included in net income. | |
Fair Value Measurements: The Company provides disclosures related to recurring and non-recurring fair value measurements with separate disclosures for the amounts of significant transfers in and out of Level 1 and Level 2 fair value measurements, along with an explanation for the transfers. Additionally, separate disclosures are provided for purchases, sales, issuances and settlements on a gross basis for Level 3 fair value measurements as well as additional clarification for both the level of disaggregation reported for each class of assets or liabilities and disclosures of inputs and valuation techniques used to measure fair value for both recurring and non-recurring fair value measurements for assets and liabilities categorized as Level 2 or Level 3. | |
Investments
Investments | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Investments [Abstract] | |||||||||||||||||||||||||
Investments | Note B - Investments | ||||||||||||||||||||||||
The following is a summary of available for sale securities at December 31: | |||||||||||||||||||||||||
Net | |||||||||||||||||||||||||
Cost or | Gross | Gross | Unrealized | ||||||||||||||||||||||
Fair | Amortized | Unrealized | Unrealized | Gains | |||||||||||||||||||||
Value | Cost | Gains | Losses | (Losses) | |||||||||||||||||||||
2014:00:00 | |||||||||||||||||||||||||
Fixed maturities: | |||||||||||||||||||||||||
U.S. government obligations | $ | 101,094 | $ | 101,058 | $ | 108 | $ | (72 | ) | $ | 36 | ||||||||||||||
Residential mortgage-backed securities | 6,066 | 5,830 | 273 | (37 | ) | 236 | |||||||||||||||||||
Commercial mortgage-backed securities | 36,440 | 36,210 | 630 | (400 | ) | 230 | |||||||||||||||||||
State and municipal obligations | 113,777 | 113,133 | 784 | (140 | ) | 644 | |||||||||||||||||||
Corporate securities | 166,966 | 170,822 | 2,005 | (5,861 | ) | (3,856 | ) | ||||||||||||||||||
Foreign government obligations | 27,466 | 28,332 | 114 | (980 | ) | (866 | ) | ||||||||||||||||||
Total fixed maturities | 451,809 | 455,385 | 3,914 | (7,490 | ) | (3,576 | ) | ||||||||||||||||||
Equity securities: | |||||||||||||||||||||||||
Financial institutions | 25,343 | 10,100 | 15,303 | (60 | ) | 15,243 | |||||||||||||||||||
Industrial & miscellaneous | 136,764 | 68,678 | 70,260 | (2,174 | ) | 68,086 | |||||||||||||||||||
Total equity securities | 162,107 | 78,778 | 85,563 | (2,234 | ) | 83,329 | |||||||||||||||||||
Total | $ | 613,916 | $ | 534,163 | $ | 89,477 | $ | (9,724 | ) | 79,753 | |||||||||||||||
Applicable federal income taxes | (27,913 | ) | |||||||||||||||||||||||
Net unrealized gains - net of tax | $ | 51,840 | |||||||||||||||||||||||
2013:00:00 | |||||||||||||||||||||||||
Fixed maturities: | |||||||||||||||||||||||||
U.S. government obligations | $ | 113,389 | $ | 113,348 | $ | 81 | $ | (40 | ) | $ | 41 | ||||||||||||||
Residential mortgage-backed securities | 13,252 | 12,058 | 1,334 | (140 | ) | 1,194 | |||||||||||||||||||
Commercial mortgage-backed securities | 28,565 | 28,406 | 308 | (149 | ) | 159 | |||||||||||||||||||
State and municipal obligations | 115,250 | 115,278 | 407 | (435 | ) | (28 | ) | ||||||||||||||||||
Corporate securities | 137,215 | 136,991 | 3,207 | (2,983 | ) | 224 | |||||||||||||||||||
Foreign government obligations | 23,879 | 23,689 | 588 | (398 | ) | 190 | |||||||||||||||||||
Total fixed maturities | 431,550 | 429,770 | 5,925 | (4,145 | ) | 1,780 | |||||||||||||||||||
Equity securities: | |||||||||||||||||||||||||
Financial institutions | 18,850 | 7,780 | 11,171 | (101 | ) | 11,070 | |||||||||||||||||||
Industrial & miscellaneous | 126,978 | 64,307 | 63,009 | (338 | ) | 62,671 | |||||||||||||||||||
Total equity securities | 145,828 | 72,087 | 74,180 | (439 | ) | 73,741 | |||||||||||||||||||
Total | $ | 577,378 | $ | 501,857 | $ | 80,105 | $ | (4,584 | ) | 75,521 | |||||||||||||||
Applicable federal income taxes | (26,432 | ) | |||||||||||||||||||||||
Net unrealized gains - net of tax | $ | 49,089 | |||||||||||||||||||||||
The following table summarizes, for fixed maturity and equity security investments in an unrealized loss position at December 31, the aggregate fair value and gross unrealized loss categorized by the duration those securities have been continuously in an unrealized loss position. | |||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
Number of Securities | Fair Value | Gross Unrealized Loss | Number of Securities | Fair Value | Gross Unrealized Loss | ||||||||||||||||||||
Fixed maturity securities: | |||||||||||||||||||||||||
12 months or less | 591 | $ | 176,756 | $ | (6,083 | ) | 451 | $ | 123,145 | $ | (3,105 | ) | |||||||||||||
Greater than 12 months | 140 | 27,667 | (1,407 | ) | 53 | 18,249 | (1,040 | ) | |||||||||||||||||
Total fixed maturities | 731 | 204,423 | (7,490 | ) | 504 | 141,394 | (4,145 | ) | |||||||||||||||||
Equity securities: | |||||||||||||||||||||||||
12 months or less | 33 | 13,538 | (2,170 | ) | 10 | 1,682 | (204 | ) | |||||||||||||||||
Greater than 12 months | 3 | 686 | (64 | ) | 2 | 1,980 | (235 | ) | |||||||||||||||||
Total equity securities | 36 | 14,224 | (2,234 | ) | 12 | 3,662 | (439 | ) | |||||||||||||||||
Total | 767 | $ | 218,647 | $ | (9,724 | ) | 516 | $ | 145,056 | $ | (4,584 | ) | |||||||||||||
Unrealized losses in the Company’s fixed maturity portfolio are generally the result of interest rate or foreign currency fluctuations as well as the disruption of credit markets occasioned by financial market turmoil such as that associated with recent oil price declines. The average unrealized loss for all fixed maturity securities in a loss position at December 31, 2014 is approximately 4% of original or adjusted cost. The Company does not intend to sell any fixed maturity securities and it is not more likely than not that the Company will have to sell any fixed maturity security before recovery of its amortized cost basis. For equity securities, the Company has evaluated the near-term prospects of the investments in relation to the severity and duration of the impairment and based on that evaluation the Company has the ability and intent to hold these investments for a period sufficient to allow for recovery of fair value. Therefore, the Company does not believe the unrealized losses represent an other-than-temporary impairment as of December 31, 2014. | |||||||||||||||||||||||||
The fair value and the cost or amortized cost of fixed maturity investments at December 31, 2014, by contractual maturity, is shown below. Actual maturities may differ from contractual maturities because borrowers have, in some cases, the right to call or prepay obligations with or without call or prepayment penalties. Pre-refunded municipal bonds are classified based on their pre-refunded call dates. | |||||||||||||||||||||||||
Fair Value | Cost or Amortized Cost | ||||||||||||||||||||||||
One year or less | $ | 130,407 | 28.9 | % | $ | 130,322 | 28.6 | % | |||||||||||||||||
Excess of one year to five years | 189,182 | 41.9 | 192,990 | 42.4 | |||||||||||||||||||||
Excess of five years to ten years | 47,209 | 10.4 | 48,176 | 10.6 | |||||||||||||||||||||
Excess of ten years | 9,377 | 2.1 | 8,744 | 1.9 | |||||||||||||||||||||
Total maturities | 376,175 | 83.3 | 380,232 | 83.5 | |||||||||||||||||||||
Asset-backed securities | 75,634 | 16.7 | 75,153 | 16.5 | |||||||||||||||||||||
$ | 451,809 | 100 | % | $ | 455,385 | 100 | % | ||||||||||||||||||
Major categories of investment income for the years ended December 31 are summarized as follows: | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Interest on fixed maturities | $ | 8,806 | $ | 9,023 | $ | 10,052 | |||||||||||||||||||
Dividends on equity securities | 2,693 | 2,166 | 2,121 | ||||||||||||||||||||||
Money market funds, Short-term and other | 37 | 49 | 43 | ||||||||||||||||||||||
11,536 | 11,238 | 12,216 | |||||||||||||||||||||||
Investment expenses | (2,481 | ) | (2,468 | ) | (2,286 | ) | |||||||||||||||||||
Net investment income | $ | 9,055 | $ | 8,770 | $ | 9,930 | |||||||||||||||||||
Gains and losses on investments, including equity method earnings from limited partnerships, for the years ended December 31 are summarized below: | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Fixed maturities: | |||||||||||||||||||||||||
Gross gains | $ | 6,480 | $ | 7,235 | $ | 3,860 | |||||||||||||||||||
Gross losses | (4,596 | ) | (4,371 | ) | (3,961 | ) | |||||||||||||||||||
Net gains (losses) | 1,884 | 2,864 | (101 | ) | |||||||||||||||||||||
Equity securities: | |||||||||||||||||||||||||
Gross gains | 7,467 | 15,374 | 3,191 | ||||||||||||||||||||||
Gross losses | (1,529 | ) | (2,718 | ) | (1,131 | ) | |||||||||||||||||||
Net gains | 5,938 | 12,656 | 2,060 | ||||||||||||||||||||||
Limited partnerships - net gain | 7,108 | 7,995 | 7,052 | ||||||||||||||||||||||
Total net gains | $ | 14,930 | $ | 23,515 | $ | 9,011 | |||||||||||||||||||
Shareholders' equity includes approximately $28,596, net of deferred federal income taxes, of undistributed earnings from limited partnerships as of December 31, 2014. | |||||||||||||||||||||||||
Gain and loss activity for fixed maturity and equity security investments, as shown in the previous table, include adjustments for other-than-temporary impairment for the years ended December 31 summarized as follows: | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Cumulative charges to income at beginning of year | $ | 6,770 | $ | 7,773 | $ | 8,178 | |||||||||||||||||||
Writedowns based on objective and subjective criteria | 689 | 742 | 888 | ||||||||||||||||||||||
Recovery of prior writedowns upon sale or disposal | (291 | ) | (1,745 | ) | (1,293 | ) | |||||||||||||||||||
Net pre-tax realized gain (loss) | (398 | ) | 1,003 | 405 | |||||||||||||||||||||
Cumulative charges to income at end of year | $ | 7,168 | $ | 6,770 | $ | 7,773 | |||||||||||||||||||
Addition (reduction) to earnings per share from net | |||||||||||||||||||||||||
after-tax OTI gain (loss) | $ | (.02 | ) | $ | 0.04 | $ | 0.02 | ||||||||||||||||||
Unrealized gain on investments previously | |||||||||||||||||||||||||
written down at end of the year - see note below | $ | 17,127 | $ | 13,129 | $ | 8,158 | |||||||||||||||||||
Note: Recovery in market value of an investment which has previously been adjusted for other-than-temporary impairment is treated as an unrealized gain until the investment matures or is sold. | |||||||||||||||||||||||||
There is no primary or secondary market for the Company’s investments in limited partnerships and, in most cases, the Company is prohibited from disposing of its limited partnership interests for some period of time and generally must seek approval from the general partner for any such disposal. Distributions of earnings from these partnerships are largely at the sole discretion of the general partners and distributions are generally not received by the Company for many years after the earnings have been reported. The Company has commitments to contribute an additional $2,868 to various limited partnerships as of December 31, 2014. | |||||||||||||||||||||||||
The Company has invested a total of $23,000 in two limited partnerships, with an aggregate estimated value of $46,987 at December 31, 2014, that are managed by organizations in which four directors of the Company are executive officers, directors or owners. The Company’s ownership interest in these limited partnerships ranges from 5% to 16%. These limited partnerships added $7,088, $1,154 and $2,485, net of fees, to investment gains in 2014, 2013 and 2012, respectively. During 2014, 2013 and 2012, the Company has recorded management fees of $697, $640 and $650, respectively, and performance-based fees of $0, $18 and $0, respectively, to these organizations for management of these limited partnerships. The Company has been informed that the fee rates applied to its investments in these limited partnerships are the same as, or lower than, the fee rates charged to unaffiliated customers for similar investments. | |||||||||||||||||||||||||
The Company utilized the services of a broker-dealer firm of which two directors of the Company are employees or partial owners. This broker-dealer serves as agent for purchases and sales of securities and manages an equity securities portfolio and fixed maturity portfolio with market values of approximately $3,334 and $19,822, respectively, at December 31, 2014. The Company has been informed that commission and management rates charged by this broker-dealer to the Company are commensurate with rates charged to non-affiliated customers for similar investments. Total commissions and net fees earned by the broker-dealer and affiliates on these transactions and for advice and consulting were approximately $212, $239 and $186 during 2014, 2013 and 2012, respectively. | |||||||||||||||||||||||||
The Company’s limited partnerships include one significant investment which invests in public and private equity markets in India. This limited partnership investment’s value as of December 31, 2014 and 2013 was $29,868 and $22,692, respectively. At December 31, 2014, the Company’s estimated ownership interest in this limited partnership investment was approximately 5%. The Company's share of earnings (losses) from this limited partnership investment was $7,176, ($3,176) and $2,404 in 2014, 2013 and 2012, respectively. The summarized financial information of the significant limited partnership investment as of and for the years ended December 31 is as follows: | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Total assets | $ | 565,500 | $ | 493,028 | $ | 641,071 | |||||||||||||||||||
Total partners' capital | 542,700 | 444,337 | 559,745 | ||||||||||||||||||||||
Net increase (decrease) in partners' capital resulting from operations | 125,700 | (64,550 | ) | 60,734 | |||||||||||||||||||||
The fair value of regulatory deposits with various insurance departments in the United States and Canada totaled $76,406 and $63,447 at December 31, 2014 and 2013, respectively. | |||||||||||||||||||||||||
Short-term investments at December 31, 2014 include $2,966 in time certificates of deposit issued by a Bermuda bank. | |||||||||||||||||||||||||
The Company’s fixed maturities are over 85% invested in investment grade fixed maturity investments. The Company has a total of $15,430, representing five different investments, of fixed maturity investments which were originally issued with guarantees by two different third party insurance companies, with the largest exposure to a single investment being $5,150. The average S&P credit rating of such investments, with consideration of the guarantee, is AA. The average S&P underlying credit rating of such investments, without consideration of the guarantee, would remain AA. The Company does not have any direct exposure to any guarantor. | |||||||||||||||||||||||||
Approximately $66,817 of fixed maturity investments (8.8% of total invested assets) consists of bonds rated as less than investment grade at year end. These investments include a diversified portfolio of over 40 investments and have a $3,188 net unrealized loss position at December 31, 2014. | |||||||||||||||||||||||||
As of December 31, 2014, the Company had committed funds totaling $7,850 related to two bridge loan agreements. The Company retains possession of these funds which will only be loaned in the unlikely event that long-term financing is unavailable to the counter party in the market. |
Loss_and_Loss_Expense_Reserves
Loss and Loss Expense Reserves | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Loss and Loss Expense Reserves [Abstract] | |||||||||||||
Loss and Loss Expense Reserves | Note C - Loss and Loss Expense Reserves | ||||||||||||
Activity in the reserves for losses and loss expenses is summarized as follows. All amounts are shown net of reinsurance, unless otherwise indicated. | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Reserves at the beginning of the year | $ | 288,088 | $ | 289,236 | $ | 290,092 | |||||||
Provision for losses and loss expenses: | |||||||||||||
Claims occurring during the current year | 169,950 | 156,264 | 147,963 | ||||||||||
Claims occurring during prior years | (10,354 | ) | (5,563 | ) | (9,875 | ) | |||||||
Total incurred | 159,596 | 150,701 | 138,088 | ||||||||||
Loss and loss expense payments: | |||||||||||||
Claims occurring during the current year | 59,826 | 47,908 | 44,941 | ||||||||||
Claims occurring during prior years | 92,275 | 103,941 | 94,003 | ||||||||||
Total paid | 152,101 | 151,849 | 138,944 | ||||||||||
Reserves at the end of the year | 295,583 | 288,088 | 289,236 | ||||||||||
Reinsurance recoverable on unpaid losses at the end of the year | 210,519 | 186,382 | 166,218 | ||||||||||
Reserves, gross of reinsurance | |||||||||||||
recoverable, at the end of the year | $ | 506,102 | $ | 474,470 | $ | 455,454 | |||||||
The table above shows that a savings of $10,354 was developed during 2014 in the settlement of claims occurring on or before December 31, 2013 with comparative developments for the two previous calendar years. The net savings for each year are composed of individual claim savings and deficiencies which, in the aggregate have resulted from the settlement of claims at amounts lower than previously reserved and from changes in estimates of losses incurred but not reported as part of the normal reserving process. | |||||||||||||
The major components of the developments shown above are as follows for the years ended December 31: | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Property and casualty insurance | $ | (5,423 | ) | $ | (1,725 | ) | $ | (7,111 | ) | ||||
Reinsurance | (4,931 | ) | (3,838 | ) | (2,764 | ) | |||||||
Totals | $ | (10,354 | ) | $ | (5,563 | ) | $ | (9,875 | ) | ||||
Favorable loss development is influenced by the Company’s long-standing policy of reserving for losses realistically and a willingness to settle claims based upon a seasoned evaluation of its exposures. Loss reserves pertaining to the Company’s property reinsurance business are established partially by the ceding reinsurers although the Company routinely adjusts such reserves if management determines that additional reserves could be necessary. Accordingly, there is potential for fluctuations in loss developments related to reinsurance assumed to be more pronounced than those experienced on directly produced business which is reserved entirely by Company personnel. In addition, changes in the Company’s net retention under reinsurance treaties will impact developments as more or less business is retained. These trends were considered in the establishment of the Company’s reserves at December 31, 2014 and 2013. | |||||||||||||
Loss reserves on certain permanent total disability workers’ compensation reserves have been discounted to present value at pre-tax rates not exceeding 3.5%. At December 31, 2014 and 2013, loss reserves have been reduced by approximately $3,129 and $5,885, respectively. Discounting is applied to these claims since the amount of periodic payments to be made during the lifetime of claimants is fixed and determinable. Loss reserves have been reduced by estimated salvage and subrogation recoverable of approximately $7,158 and $8,115 at December 31, 2014 and 2013, respectively. |
Reinsurance
Reinsurance | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Reinsurance [Abstract] | |||||||||||||||||||||||||
Reinsurance | Note D – Reinsurance | ||||||||||||||||||||||||
The insurance subsidiaries cede portions of their gross premiums written to certain other insurers under excess of loss and quota share treaties and by facultative placements. Reinsurance treaties with other companies permit the recovery of a portion of related direct losses. Management determines the amount of net exposure it is willing to accept generally on a product line basis. Certain treaties covering fleet transportation risks include annual deductibles which must be exceeded before the Company can recover under the terms of the treaty. The Company retains a higher percentage of the direct premium in consideration of these deductible provisions. The Company remains liable to the extent the reinsuring companies are unable to meet their obligations under reinsurance contracts. | |||||||||||||||||||||||||
The Company also serves as an assuming reinsurer on treaties with direct writing insurance companies and, prior to January 1, 2014, under retrocessions from other reinsurers for catastrophic property coverages. Accordingly, the occurrence of catastrophic events can have a significant impact on the Company's operations. The Company also assumes reinsurance from direct writing insurance companies for casualty insurance coverages. In addition, the insurance subsidiaries participate in certain mandatory residual market pools which require insurance companies to provide coverages on assigned risks. The assigned risk pools allocate participation to all insurers based upon each insurer’s portion of premium writings on a state or national level. Historically, the operation of these assigned risk pools have resulted in net losses allocated to the Company although such losses have not been material in relation to the Company’s operations. | |||||||||||||||||||||||||
The following table summarizes the impact of reinsurance ceded and assumed on the Company’s net premium written and earned for the most recent three years: | |||||||||||||||||||||||||
Premiums Written | Premiums Earned | ||||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||||||||
Direct | $ | 343,200 | $ | 314,784 | $ | 284,200 | $ | 342,656 | $ | 313,842 | $ | 287,982 | |||||||||||||
Ceded on direct | (118,942 | ) | (112,967 | ) | (105,292 | ) | (117,973 | ) | (111,057 | ) | (101,396 | ) | |||||||||||||
Net direct | 224,258 | 201,817 | 178,908 | 224,683 | 202,785 | 186,586 | |||||||||||||||||||
Assumed | 39,188 | 54,692 | 57,086 | 38,219 | 52,783 | 53,191 | |||||||||||||||||||
Ceded on assumed | (1,275 | ) | (2,825 | ) | (2,316 | ) | (1,275 | ) | (2,825 | ) | (2,316 | ) | |||||||||||||
Net assumed | 37,913 | 51,867 | 54,770 | 36,944 | 49,958 | 50,875 | |||||||||||||||||||
Net | $ | 262,171 | $ | 253,684 | $ | 233,678 | $ | 261,627 | $ | 252,743 | $ | 237,461 | |||||||||||||
Net losses and loss expenses incurred for 2014, 2013 and 2012 have been reduced by ceded reinsurance recoveries of approximately $105,891, $107,321 and $90,899, respectively. Ceded reinsurance premiums and loss recoveries for the purchase of catastrophe reinsurance coverage on the Company’s net direct business were not material. | |||||||||||||||||||||||||
Net losses and loss expenses incurred for 2014, 2013 and 2012 include approximately $23,163, $20,014 and $16,486, respectively, net of retrocessional recoveries of $20,000 during 2012, relating to reinsurance assumed from non-affiliated insurance or reinsurance companies. | |||||||||||||||||||||||||
Components of reinsurance recoverable at December 31 are as follows: | |||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
Case unpaid losses, net of valuation allowance | $ | 143,403 | $ | 133,484 | |||||||||||||||||||||
Incurred but not reported unpaid losses and loss expenses | 66,325 | 52,157 | |||||||||||||||||||||||
Paid losses and loss expenses | 6,910 | 4,126 | |||||||||||||||||||||||
Unearned premiums | 3,583 | 5,801 | |||||||||||||||||||||||
$ | 220,221 | $ | 195,568 |
Income_Taxes
Income Taxes | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Income Taxes [Abstract] | ||||||||||||||
Income Taxes | Note E - Income Taxes | |||||||||||||
Deferred income taxes are calculated to account for the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company's deferred tax assets and liabilities as of December 31 are as follows: | ||||||||||||||
2014 | 2013 | |||||||||||||
Deferred tax liabilities: | ||||||||||||||
Unrealized gain on fixed income and equity security investments | $ | 27,914 | $ | 26,432 | ||||||||||
Deferred acquisition costs | 1,341 | 1,829 | ||||||||||||
Salvage and subrogation | 2,373 | 2,638 | ||||||||||||
Limited partnership investments | 4,636 | 2,612 | ||||||||||||
Other | 1,229 | 866 | ||||||||||||
Total deferred tax liabilities | 37,493 | 34,377 | ||||||||||||
Deferred tax assets: | ||||||||||||||
Loss and loss expense reserves | 10,973 | 11,071 | ||||||||||||
Unearned premiums discount | 2,201 | 2,162 | ||||||||||||
Other-than-temporary investment declines | 2,049 | 2,053 | ||||||||||||
Deferred compensation | 1,565 | 880 | ||||||||||||
Deferred ceding commission | 549 | 1,018 | ||||||||||||
Other | 183 | 342 | ||||||||||||
Total deferred tax assets | 17,520 | 17,526 | ||||||||||||
Net deferred tax liabilities | $ | (19,973 | ) | $ | (16,851 | ) | ||||||||
A summary of the difference between federal income tax expense computed at the statutory rate and that reported in the consolidated financial statements is as follows: | ||||||||||||||
2014 | 2013 | 2012 | ||||||||||||
Statutory federal income rate applied to pretax income | $ | 15,539 | $ | 19,218 | $ | 16,312 | ||||||||
Tax effect of (deduction): | ||||||||||||||
Tax-exempt investment income | (924 | ) | (811 | ) | (933 | ) | ||||||||
Net reduction of tax positions | (75 | ) | (116 | ) | (693 | ) | ||||||||
Other | 141 | 31 | 1 | |||||||||||
Federal income tax expense | $ | 14,681 | $ | 18,322 | $ | 14,687 | ||||||||
Federal income tax expense consists of the following: | ||||||||||||||
2014 | 2013 | 2012 | ||||||||||||
Taxes on pre-tax income: | ||||||||||||||
Current | $ | 13,041 | $ | 17,383 | $ | 10,819 | ||||||||
Deferred | 1,640 | 939 | 3,868 | |||||||||||
$ | 14,681 | $ | 18,322 | $ | 14,687 | |||||||||
The components of the provision for deferred federal income taxes are as follows: | ||||||||||||||
2014 | 2013 | 2012 | ||||||||||||
Limited partnerships | $ | 2,025 | $ | 1,058 | $ | 3,013 | ||||||||
Discounts of loss and loss expense reserves | 113 | 313 | (57 | ) | ||||||||||
Unearned premium discount | (38 | ) | (65 | ) | 265 | |||||||||
Deferred compensation | (685 | ) | (146 | ) | 112 | |||||||||
Other-than-temporary investment declines | (19 | ) | 680 | 169 | ||||||||||
Deferred acquisitions costs and ceding commission | (20 | ) | (271 | ) | (520 | ) | ||||||||
Other | 264 | (630 | ) | 886 | ||||||||||
Provision for deferred federal income tax | $ | 1,640 | $ | 939 | $ | 3,868 | ||||||||
Cash flows related to federal income taxes paid, net of refunds received, for 2014, 2013 and 2012 were $11,619, $17,250 and $3,661, respectively. | ||||||||||||||
The Company is required to establish a valuation allowance for any portion of the gross deferred tax asset that management believes will not be realized. Management has determined that no such valuation allowance is necessary at December 31, 2014 or 2013. As of December 31, 2014, the calendar years 2011 through 2014 remain subject to examination by the IRS. | ||||||||||||||
The Company has no uncertain tax positions as of December 31, 2014 or 2013. The Company recognizes accrued interest and penalties, if any, related to unrecognized tax benefits in income tax expense and changes in such accruals would impact the Company’s effective tax rate. Amounts accrued for the payment of interest at December 31, 2014, 2013 and 2012 were not material. | ||||||||||||||
Shareholders_Equity
Shareholders' Equity | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Shareholders' Equity [Abstract] | |||||||||||||||||||||
Shareholders' Equity | Note F - Shareholders' Equity | ||||||||||||||||||||
Changes in common stock outstanding and additional paid-in capital are as follows: | |||||||||||||||||||||
Additional | |||||||||||||||||||||
Class A | Class B | Paid-in | |||||||||||||||||||
Shares | Amount | Shares | Amount | Capital | |||||||||||||||||
Balance at January 1, 2012 | 2,623,109 | $ | 112 | 12,225,348 | $ | 522 | $ | 48,751 | |||||||||||||
Restricted stock grants | - | - | 64,687 | 2 | 1,524 | ||||||||||||||||
Balance at December 31, 2012 | 2,623,109 | 112 | 12,290,035 | 524 | 50,275 | ||||||||||||||||
Restricted stock grants | - | - | 14,156 | 1 | 319 | ||||||||||||||||
Balance at December 31, 2013 | 2,623,109 | 112 | 12,304,191 | 525 | 50,594 | ||||||||||||||||
Restricted stock grants | - | - | 52,198 | 2 | 1,260 | ||||||||||||||||
Balance at December 31, 2014 | 2,623,109 | $ | 112 | 12,356,389 | $ | 527 | $ | 51,854 | |||||||||||||
The Company's Class A and Class B common stock has a stated value of approximately $.04 per share. The Company paid a total of $14,947, $14,943 and $14,886, or $1.00 per share, in dividends for the years 2014, 2013 and 2012, respectively. |
Other_Operating_Expenses
Other Operating Expenses | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Other Operating Expenses [Abstract] | ||||||||||||||
Other Operating Expenses | Note G - Other Operating Expenses | |||||||||||||
Details of other operating expenses for the years ended December 31: | ||||||||||||||
2014 | 2013 | 2012 | ||||||||||||
Amortization of gross deferred policy acquisition costs | $ | 48,872 | $ | 47,414 | $ | 41,957 | ||||||||
Other underwriting expenses | 37,830 | 35,281 | 27,242 | |||||||||||
Expense allowances from reinsurers | (23,797 | ) | (20,822 | ) | (15,185 | ) | ||||||||
Total underwriting expenses | 62,905 | 61,873 | 54,014 | |||||||||||
Operating expenses of non-insurance companies | 25,143 | 23,488 | 23,416 | |||||||||||
Total other operating expenses | $ | 88,048 | $ | 85,361 | $ | 77,430 |
Employee_Benefit_Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2014 | |
Employee Benefit Plans [Abstract] | |
Employee Benefit Plans | Note H - Employee Benefit Plans |
The Company maintains a defined contribution 401(k) Employee Savings and Profit Sharing Plan (the “Plan”) which covers nearly all employees who have completed one year of service. The Company's contributions to the Plan for 2014, 2013 and 2012 were $1,798, $1,798 and $1,539, respectively. |
Stock_Purchase_and_Option_Plan
Stock Purchase and Option Plans | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Stock Purchase and Option Plans [Abstract] | |||||||||
Stock Purchase and Option Plans | Note I - Stock Purchase and Option Plans | ||||||||
In accordance with the terms of the 1981 Stock Purchase Plan (1981 Plan), the Company is obligated to repurchase shares issued under the 1981 Plan, at a price equal to 90% of the book value of the shares at the end of the quarter immediately preceding the date of repurchase. A limited number of shares have ever been repurchased under the 1981 Plan. At December 31, 2014, there were 121,286 shares (Class A) and 339,546 shares (Class B) outstanding which remain eligible for repurchase by the Company. | |||||||||
The Company maintains one restricted stock unit plan which is described below. | |||||||||
Restricted Stock: | |||||||||
Each year, beginning in 2009, the Company has issued shares of class B restricted stock to the Company’s outside directors. The shares serve as the annual retainer compensation for the outside directors for the periods shown below. The shares are distributed on the vesting date and have a total value of $440 for each of the annual periods. The table below provides detail of the stock issuances for 2014, 2013 and 2012: | |||||||||
Effective | Number of Shares | Vesting | Value | ||||||
Date | Issued | Date | Period | Per Share | |||||
5/8/12 | 20,119 | 5/8/13 | 7/1/2012 - 6/30/2013 | $21.87 | |||||
5/7/13 | 18,106 | 5/7/14 | 7/1/2013 - 6/30/2014 | $24.30 | |||||
5/8/14 | 17,237 | 5/8/15 | 7/1/2014 - 6/30/2015 | $25.53 | |||||
Compensation expense related to the above stock grant is recognized over the period in which the directors render the services. | |||||||||
Director compensation cost associated with restricted stock grants of $440 was charged against income for the restricted stock units for 2014, 2013 and 2012. | |||||||||
Effective February 4, 2014, the Company issued 45,678 shares of class B restricted stock to certain of the Company’s executives. The restricted shares will be paid solely in the Company’s class B stock. The restricted shares represent a portion of the calendar year 2013 compensation to certain executives under the terms of the Company’s Executive Incentive Bonus Plan. The restricted shares will vest ratably over a three year period from the date of grant and are accelerated for retirement eligible recipients in accordance with the non-substantive post-grant date vesting clause of ASC 715, Compensation-Retirement Benefits. Restricted stock was valued based on the closing price of the stock on the day the award was granted. Each share was valued at $23.81 per share representing a total value of $1,088. Non-vested restricted shares will be forfeited should an executive’s employment terminate for any reason other than death, disability, or retirement as defined by the Compensation Committee. | |||||||||
Effective February 4, 2015, the Company issued 36,646 shares of class B restricted stock to certain of the Company’s executives. The restricted shares will be paid solely in the Company’s class B stock. The restricted shares represent a portion of the calendar year 2014 compensation to certain executives under the terms of the Company’s Executive Incentive Bonus Plan. The restricted shares will vest ratably over a three year period from the date of grant and are accelerated for retirement eligible recipients in accordance with the non-substantive post-grant date vesting clause of ASC 715, Compensation-Retirement Benefits. Restricted stock was valued based on the closing price of the stock on the day the award was granted. Each share was valued at $23.29 per share representing a total value of $853. Non-vested restricted shares will be forfeited should an executive’s employment terminate for any reason other than death, disability, or retirement as defined by the Compensation Committee. |
Reportable_Segments
Reportable Segments | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Reportable Segments [Abstract] | ||||||||||||||
Reportable Segments | Note J - Reportable Segments | |||||||||||||
The Company operates within two reportable business segments: property and casualty insurance and reinsurance. The property and casualty insurance segment provides multiple line insurance coverage primarily to fleet transportation companies and to independent contractors who contract with fleet transportation companies, as well as individual personal automobile coverage, professional liability coverages and business owners’ and commercial property policies. The reinsurance segment accepts cessions from other insurance companies as well as retrocessions from selected reinsurance companies, providing property catastrophe and casualty reinsurance coverages. | ||||||||||||||
The Company evaluates performance and allocates resources based on past or expected results from insurance underwriting operations before income taxes. Underwriting gain or loss does not include net investment income or gains or losses on the Company's investment portfolio. All investment-related revenues are managed at the corporate level. Underwriting gain or loss for the property and casualty insurance segment includes revenue and expense from the Company's agency operations since the agency operations serve as a primary direct marketing facility for this segment. Management does not identify or allocate assets to reportable segments when evaluating segment performance and depreciation expense is not material for any of the reportable segments. The accounting policies of each reportable segment are the same as those described in the summary of significant accounting policies. | ||||||||||||||
The following table provides certain profit and loss information for each reportable segment for the years ended | ||||||||||||||
December 31: | ||||||||||||||
2014 | 2013 | 2012 | ||||||||||||
Direct and assumed premium written: | ||||||||||||||
Property and casualty insurance | $ | 343,200 | $ | 314,784 | $ | 284,200 | ||||||||
Reinsurance | 39,188 | 54,692 | 57,086 | |||||||||||
Totals | $ | 382,388 | $ | 369,476 | $ | 341,286 | ||||||||
Net premium earned: | ||||||||||||||
Property and casualty insurance | $ | 224,683 | $ | 202,785 | $ | 186,586 | ||||||||
Reinsurance | 36,944 | 49,958 | 50,875 | |||||||||||
Totals | $ | 261,627 | $ | 252,743 | $ | 237,461 | ||||||||
Underwriting gain: | ||||||||||||||
Property and casualty insurance | $ | 32,663 | $ | 25,558 | $ | 23,491 | ||||||||
Reinsurance | 2,147 | 12,278 | 20,567 | |||||||||||
Totals | $ | 34,810 | $ | 37,836 | $ | 44,058 | ||||||||
The following table reconciles reportable segment profits to the Company’s consolidated income before federal income taxes: | ||||||||||||||
2014 | 2013 | 2012 | ||||||||||||
Profit: | ||||||||||||||
Underwriting gain | $ | 34,810 | $ | 37,836 | $ | 44,058 | ||||||||
Net investment income | 9,055 | 8,770 | 9,930 | |||||||||||
Net realized gains on investments | 14,930 | 23,515 | 9,011 | |||||||||||
Corporate expenses | (14,397 | ) | (15,211 | ) | (16,393 | ) | ||||||||
Income before federal income taxes | $ | 44,398 | $ | 54,910 | $ | 46,606 | ||||||||
One customer of the property and casualty insurance segment, FedEx Ground Systems, Inc. and certain of its subsidiaries and related entities (“FedEx”) represents approximately $8,191, $15,615 and $19,052 of the Company’s consolidated direct and assumed premium written in 2014, 2013 and 2012, respectively. | ||||||||||||||
An additional $208,580, $177,389 and $146,447 for 2014, 2013 and 2012, respectively, is placed with the Company by a non-affiliated broker on behalf of independent contractors of this same customer but is not dependent upon the direct business with this customer. |
Earnings_Per_Share
Earnings Per Share | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Earnings Per Share [Abstract] | |||||||||||||
Earnings Per Share | Note K - Earnings Per Share | ||||||||||||
The following is a reconciliation of the denominators used in the calculation of basic and diluted earnings per share for the years ended December 31: | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Average share outstanding for basic earnings per share | 14,963,959 | 14,906,416 | 14,838,767 | ||||||||||
Dilutive effect of share equivalents | 11,935 | 17,345 | 29,482 | ||||||||||
Average shares outstanding for diluted earnings per share | 14,975,894 | 14,923,761 | 14,868,249 |
Concentrations_of_Credit_Risk
Concentrations of Credit Risk | 12 Months Ended |
Dec. 31, 2014 | |
Concentrations of Credit Risk [Abstract] | |
Concentrations of Credit Risk | Note L - Concentrations of Credit Risk |
The Company writes policies of excess insurance attaching above self-insured retentions ("SIR") and also writes policies that contain per-claim deductibles. Those losses and claims that fall within the SIR limits are obligations of the insured; however, the Company writes surety bonds in favor of various regulatory agencies guaranteeing the insureds’ payment of claims within the SIR. Further, specified portions of losses and claims incurred under large deductible policies, while obligations of the Company, are contractually reimbursable to the Company from the insureds. The Company requires collateral from its insureds to serve as a source of reimbursement if the Company is obligated to pay claims within the SIR by reason of an insured’s default or if the insured fails to reimburse the Company for deductible amounts paid by the Company. | |
Acceptable collateral may be provided in the form of letters of credit on Company approved banks, Company approved marketable securities or cash. At December 31, 2014, the Company held collateral in the aggregate amount of $234,312. | |
The amount of collateral required of an insured is determined by the financial condition of the insured, the type of obligations guaranteed by the Company, estimated reserves for incurred losses within the SIR or deductible that have been reported to the insured or the Company, estimated incurred but not reported losses, and estimates for losses that are expected to occur, within the SIR or deductible, prior to the next collateral adjustment date. In general, the Company attempts to hold collateral equal to 100% of the ultimate losses that would be paid by or due the Company in the event of an insured’s default. Periodic audits are conducted by the Company to evaluate its exposure and the collateral required. If a deficiency in collateral is noted as the result of an audit, additional collateral is requested immediately. Because collateral amounts contain numerous estimates of the Company’s exposure, are adjusted only periodically and are sometimes reduced based on the superior financial condition of the insured, the amount of collateral held by the Company at a given point in time may not be sufficient to fully reimburse the Company for all of its guarantees or amounts due in the event of an insured’s default. In that regard, the Company is not fully collateralized for the guarantees made for, or the deductible amounts that may be due from FedEx Ground and certain of its subsidiaries and related entities, and in the event of their default, such default may have a material adverse impact on the Company. The Company estimates its uncollateralized exposure related to this customer to be as much as 42% of shareholders' equity at December 31, 2014. | |
In addition, the Company's balance sheet includes paid and estimated unpaid amounts recoverable from reinsurers under various agreements totaling $269,114 at December 31, 2014. These recoverables are only partially collateralized. The two largest amounts due from individual reinsurers net of collateral and offsets were $36,273 and $12,002 at December 31, 2014. | |
Investments in limited partnerships include an aggregate of $46,987 invested in two limited partnerships, New Vernon India Fund and New Vernon Global Opportunity Fund which are managed by organizations in which four directors of the Company are executive officers, directors and owners. |
Acquisition_and_related_Goodwi
Acquisition and related Goodwill and Intangibles | 12 Months Ended |
Dec. 31, 2014 | |
Acquisition and related Goodwill and Intangibles [Abstract] | |
Acquisition and related Goodwill and Intangibles | Note M – Acquisition and related Goodwill and Intangibles |
On October 31, 2008, the Company purchased a commercial lines specialty insurance agency primarily focusing on the needs of the transportation industry including trucking independent contractors as well as fleet trucking companies for a cash purchase price of $3,500. The acquisition is part of the Company’s property and casualty insurance segment. As part of the purchase, the Company recorded goodwill of $3,152 and intangible assets related to customer relationships and employment agreements of $179 which are included in Other Assets in the consolidated balance sheets and have recorded amortization of intangible assets of $4, $17 and $28 during 2014, 2013, and 2012, respectively. Accumulated amortization of intangible assets was $179 and $175 as of December 31, 2014 and 2013, respectively. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2014 | |
Debt [Abstract] | |
Debt | Note N – Debt |
The Company maintains a revolving line of credit with a $40,000 limit and an expiration date of September 23, 2018. Interest on this line of credit is referenced to LIBOR and can be fixed for periods of up to one year at the Company’s option. Outstanding drawings on this line of credit were $20,000 and $10,000 as of December 31, 2014 and 2013, respectively. At December 31, 2014, the effective interest rate was 1.26%. The Company has $20,000 remaining unused under the line of credit at December 31, 2014. The current outstanding borrowings were used for general corporate purchases. |
Fair_Value
Fair Value | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Fair Value [Abstract] | |||||||||||||||||||||
Fair Value | Note O – Fair Value | ||||||||||||||||||||
Assets and liabilities recorded at fair value in the consolidated balance sheets are categorized based upon the level of judgment associated with the inputs used to measure their fair value. The carrying amounts reported in the consolidated balance sheets for cash, accounts receivables, reinsurance recoverable, notes receivable, accounts payable and accrued expenses, income taxes payable, short term borrowings and unearned income approximate fair value because of the short term nature of these items. The following tables summarize fair value measurements by level for assets measured at fair value on a recurring basis: | |||||||||||||||||||||
As of December 31, 2014: | |||||||||||||||||||||
Description | Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||
Fixed maturities: | |||||||||||||||||||||
U.S. government obligations | $ | 101,094 | $ | - | $ | 101,094 | $ | - | |||||||||||||
Residential mortgage-backed securities | 6,066 | - | 6,066 | - | |||||||||||||||||
Commercial mortgage-backed securities | 36,440 | - | 36,440 | - | |||||||||||||||||
State and municipal obligations | 113,777 | - | 113,777 | - | |||||||||||||||||
Corporate securities | 164,068 | - | 151,860 | 12,208 | |||||||||||||||||
Options embedded in convertible securities | 2,898 | - | 2,898 | - | |||||||||||||||||
Foreign government obligations | 27,466 | - | 27,466 | - | |||||||||||||||||
Total fixed maturities | 451,809 | - | 439,601 | 12,208 | |||||||||||||||||
Equity securities: | |||||||||||||||||||||
Financial institutions | 25,343 | 25,343 | - | - | |||||||||||||||||
Industrial & miscellaneous | 136,764 | 136,764 | - | - | |||||||||||||||||
Total equity securities | 162,107 | 162,107 | - | - | |||||||||||||||||
Short term | 2,966 | 2,966 | - | - | |||||||||||||||||
Cash equivalents | 59,309 | - | 59,309 | - | |||||||||||||||||
Total | $ | 676,191 | $ | 165,073 | $ | 498,910 | $ | 12,208 | |||||||||||||
As of December 31, 2013: | |||||||||||||||||||||
Description | Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||
Fixed maturities: | |||||||||||||||||||||
U.S. government obligations | $ | 113,389 | $ | 113,389 | $ | - | $ | - | |||||||||||||
Residential mortgage-backed securities | 13,252 | - | 13,252 | - | |||||||||||||||||
Commercial mortgage-backed securities | 28,565 | - | 28,565 | - | |||||||||||||||||
State and municipal obligations | 115,250 | - | 115,250 | - | |||||||||||||||||
Corporate securities | 134,635 | - | 134,635 | - | |||||||||||||||||
Options embedded in convertible securities | 2,580 | - | 2,580 | - | |||||||||||||||||
Foreign government obligations | 23,879 | - | 23,879 | - | |||||||||||||||||
Total fixed maturities | 431,550 | 113,389 | 318,161 | - | |||||||||||||||||
Equity securities: | |||||||||||||||||||||
Financial institutions | 18,850 | 18,850 | - | - | |||||||||||||||||
Industrial & miscellaneous | 126,978 | 126,978 | - | - | |||||||||||||||||
Total equity securities | 145,828 | 145,828 | - | - | |||||||||||||||||
Short term | 4,891 | 4,891 | - | - | |||||||||||||||||
Cash equivalents | 52,002 | - | 52,002 | - | |||||||||||||||||
Total | $ | 634,271 | $ | 264,108 | $ | 370,163 | $ | - | |||||||||||||
Level inputs, as defined by the FASB guidance, are as follows: | |||||||||||||||||||||
Level Input: | Input Definition: | ||||||||||||||||||||
Level 1 | Inputs are unadjusted, quoted prices for identical assets or liabilities in active markets at the measurement date. | ||||||||||||||||||||
Level 2 | Inputs other than quoted prices included in Level 1 that are observable for the asset or liability through corroboration with market data at the measurement date. | ||||||||||||||||||||
Level 3 | Unobservable inputs that reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. | ||||||||||||||||||||
The Level 3 assets consist of a portfolio of corporate convertible bonds. The corporate convertible bonds are valued using various unobservable inputs including extrapolated data, proprietary models and indicative quotes. Transfers into Level 3 during 2014 relate to securities previously classified as Level 2. There were transfers into Level 3 during 2013. A reconciliation of the beginning and ending balances of assets measured at fair value on a recurring basis using Level 3 inputs is as follows for the years ended December 31: | |||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
Beginning of period balance | $ | - | $ | 11,682 | |||||||||||||||||
Total gains or losses (realized or unrealized) | |||||||||||||||||||||
included in income | - | 1,017 | |||||||||||||||||||
Purchases | - | 1,258 | |||||||||||||||||||
Settlements | - | (6,698 | ) | ||||||||||||||||||
Transfers into Level 3 | 12,208 | (7,259 | ) | ||||||||||||||||||
End of period balance | $ | 12,208 | $ | - | |||||||||||||||||
Quoted market prices are obtained whenever possible. Where quoted market prices are not available, fair values are estimated using present value or other valuation techniques. These techniques are significantly affected by our assumptions, including discount rates and estimates of future cash flows. Potential taxes and other transaction costs have not been considered in estimating fair values. | |||||||||||||||||||||
Transfers between levels, if any, are recorded as of the beginning of the reporting period. The U.S. government obligations were transferred to Level 2 during 2014 based on market data as well as other factors including region, price type and provider on each asset. There were no significant transfers of assets between Level 1 and Level 2 during 2013 and 2012. | |||||||||||||||||||||
In addition to the preceding disclosures on assets recorded at fair value in the consolidated balance sheets, FASB guidance also requires the disclosure of fair values for certain other financial instruments for which it is practicable to estimate fair value, whether or not such values are recognized in the consolidated balance sheets. | |||||||||||||||||||||
Non-financial instruments such as real estate, property and equipment, other assets, deferred income taxes and intangible assets, and certain financial instruments such as policy reserve liabilities are excluded from the fair value disclosures. Therefore, the fair value amounts cannot be aggregated to determine the underlying economic value to the Company. | |||||||||||||||||||||
The following methods, assumptions and inputs were used to estimate the fair value of each class of financial instrument: | |||||||||||||||||||||
Limited partnerships: The Company accounts for investments in limited partnerships using the equity method of accounting, which requires an investor in a limited partnership to carry the investment at its proportionate share of the limited partnership’s equity. The underlying assets of the Company’s investments in limited partnerships are carried primarily at fair value, and, therefore, the Company’s carrying value of limited partnerships approximates fair value. As these investments are not actively traded and the corresponding inputs are based on data provided by the investees, they are classified as Level 3. | |||||||||||||||||||||
Short-term borrowings: The fair value of our short-term borrowings is based on quoted market prices for the same or similar debt, or, if no quoted market prices are available, on the current market interest rates available to us for debt of similar terms and remaining maturities. | |||||||||||||||||||||
A summary of the carrying value and fair value by level of financial instruments not recorded at fair value on the Company’s consolidated balance sheet at December 31, 2014 and 2013 is as follows: | |||||||||||||||||||||
2014:00:00 | Carrying | Fair Value | |||||||||||||||||||
Value | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||
Assets: | |||||||||||||||||||||
Limited partnerships | $ | 81,230 | $ | - | $ | - | $ | 81,230 | $ | 81,230 | |||||||||||
Liabilities: | |||||||||||||||||||||
Short-term borrowings | 20,000 | - | 20,000 | - | 20,000 | ||||||||||||||||
2013:00:00 | |||||||||||||||||||||
Assets: | |||||||||||||||||||||
Limited partnerships | $ | 68,988 | $ | - | $ | - | $ | 68,988 | $ | 68,988 | |||||||||||
Liabilities: | |||||||||||||||||||||
Short-term borrowings | 10,000 | - | 10,000 | - | 10,000 |
Quarterly_Results_of_Operation
Quarterly Results of Operations (Unaudited) | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||
Quarterly Results of Operations (Unaudited) [Abstract] | |||||||||||||||||||||||||||||||||
Quarterly Results of Operations (Unaudited) | Note P - Quarterly Results of Operations (Unaudited) | ||||||||||||||||||||||||||||||||
Quarterly results of operations are as follows: | |||||||||||||||||||||||||||||||||
Results by Quarter | |||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||
1st | 2nd | 3rd | 4th | 1st | 2nd | 3rd | 4th | ||||||||||||||||||||||||||
Net premiums earned | $ | 63,842 | $ | 62,905 | $ | 65,947 | $ | 68,933 | $ | 61,098 | $ | 61,775 | $ | 64,448 | $ | 65,422 | |||||||||||||||||
Net investment income | 2,294 | 2,090 | 2,073 | 2,599 | 2,410 | 1,985 | 2,192 | 2,183 | |||||||||||||||||||||||||
Net gains on investments | 4,070 | 8,089 | 658 | 2,113 | 14,347 | 719 | 1,430 | 7,019 | |||||||||||||||||||||||||
Losses and loss expenses incurred | 39,289 | 40,282 | 38,693 | 41,332 | 34,533 | 38,343 | 36,967 | 40,858 | |||||||||||||||||||||||||
Net income | 6,361 | 9,340 | 5,770 | 8,246 | 14,943 | 4,907 | 7,771 | 8,967 | |||||||||||||||||||||||||
Net income per share - diluted | $ | 0.42 | $ | 0.62 | $ | 0.39 | $ | 0.55 | $ | 1 | $ | 0.33 | $ | 0.52 | $ | 0.6 |
Statutory
Statutory | 12 Months Ended |
Dec. 31, 2014 | |
Statutory [Abstract] | |
Statutory | Note Q - Statutory |
Net income of the insurance subsidiaries, all of which are wholly owned, as determined in accordance with statutory accounting practices, was $27,143, $30,886 and $29,262 for 2014, 2013 and 2012, respectively. Consolidated statutory capital and surplus for these subsidiaries was $398,762 and $377,209 at December 31, 2014 and 2013, respectively, of which $64,400 may be transferred by dividend or loan to the parent company during calendar year 2015 with proper notification to, but without approval from, regulatory authorities. An additional $238,096 of shareholders’ equity of such insurance subsidiaries could, under existing regulations, be advanced or loaned to the parent company with prior notification to and approval from regulatory authorities, although it is unlikely that transfers of this size would be practical. | |
State regulatory authorities prescribe calculations of the minimum amount of statutory capital and surplus necessary for each insurance company to remain authorized. These computations are referred to as Risk Based Capital (“RBC”) requirements and are based on a number of complex factors taking into consideration the quality and nature of assets, the historical adequacy of recorded liabilities and the specific nature of business conducted. At December 31, 2014 the minimum statutory capital and surplus requirements of the insurance subsidiaries was $94,892. Actual consolidated statutory capital and surplus at December 31, 2014 exceeded this requirement by $303,870, which equals to 320% of minimum RBC. |
Leases
Leases | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Leases [Abstract] | |||||
Leases | Note R - Leases | ||||
The Company leases certain computer and related equipment using noncancelable operating leases. Lease expense for 2014, 2013 and 2012 was $330, $1,324 and $1,506, respectively. At December 31, 2014, future lease payments for operating leases with initial or remaining noncancelable terms of one year or more consisted of the following: | |||||
2015 | 144 | ||||
2016 | 138 | ||||
2017 | 106 | ||||
2018 | - | ||||
2019 | - | ||||
Thereafter | - | ||||
Total minimum payments required | $ | 388 |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Accumulated Other Comprehensive Income [Abstract] | |||||||||||||
Accumulated Other Comprehensive Income | Note S – Accumulated Other Comprehensive Income | ||||||||||||
A reconciliation of the components of accumulated other comprehensive income at December 31 is as follows: | |||||||||||||
2014 | 2013 | ||||||||||||
Investments: | |||||||||||||
Total unrealized gain before federal income taxes | $ | 79,753 | $ | 75,521 | |||||||||
Deferred tax liability | (27,913 | ) | (26,432 | ) | |||||||||
Net unrealized gains on investments | 51,840 | 49,089 | |||||||||||
Foreign exchange adjustment: | |||||||||||||
Total unrealized gains | 600 | 2,155 | |||||||||||
Deferred tax liability | (210 | ) | (754 | ) | |||||||||
Net unrealized gains on foreign exchange adjustment | 390 | 1,401 | |||||||||||
Accumulated other comprehensive income | $ | 52,230 | $ | 50,490 | |||||||||
Other comprehensive income reclassification adjustments for the years ended December 31 are as follows: | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Investments: | |||||||||||||
Pre-tax holding gains on debt and equity | |||||||||||||
securities arising during period | $ | 12,055 | $ | 36,477 | $ | 15,612 | |||||||
Less: applicable federal income taxes | 4,220 | 12,766 | 5,464 | ||||||||||
7,835 | 23,711 | 10,148 | |||||||||||
Pre-tax gains on debt and equity securities | |||||||||||||
included in net income during period | 7,823 | 15,520 | 1,959 | ||||||||||
Less: applicable federal income taxes | 2,739 | 5,431 | 686 | ||||||||||
5,084 | 10,089 | 1,273 | |||||||||||
Change in unrealized gains on investments | $ | 2,751 | $ | 13,622 | $ | 8,875 | |||||||
Reconciliation of accumulated other comprehensive income and retained earnings for the years ended December 31 are as follows: | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Beginning accumulated other comprehensive income | $ | 50,490 | $ | 37,443 | $ | 28,351 | |||||||
Change in foreign exchange adjustment | (1,011 | ) | (575 | ) | 217 | ||||||||
Change in unrealized net gains on investments | 2,751 | 13,622 | 8,875 | ||||||||||
Ending accumulated other comprehensive income | $ | 52,230 | $ | 50,490 | $ | 37,443 | |||||||
2014 | 2013 | 2012 | |||||||||||
Beginning retained earnings | $ | 280,003 | $ | 258,358 | $ | 241,325 | |||||||
Net income | 29,717 | 36,588 | 31,919 | ||||||||||
Dividends | (14,947 | ) | (14,943 | ) | (14,886 | ) | |||||||
Ending retained earnings | $ | 294,773 | $ | 280,003 | $ | 258,358 |
Subsequent_Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2014 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note T - Subsequent Events |
We have evaluated subsequent events for recognition or disclosure in the consolidated financial statements filed on Form 10-K with the U.S. Securities and Exchange Commission and no events have occurred during this period which require recognition or disclosure in this document. |
SCHEDULE_I_SUMMARY_OF_INVESTME
SCHEDULE I -SUMMARY OF INVESTMENTS-OTHER THAN INVESTMENTS IN RELATED PARTIES | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
SCHEDULE I -- SUMMARY OF INVESTMENTS-OTHER THAN INVESTMENTS IN RELATED PARTIES [Abstract] | |||||||||||||
SCHEDULE I -- SUMMARY OF INVESTMENTS-OTHER THAN INVESTMENTS IN RELATED PARTIES | SCHEDULE I -- SUMMARY OF INVESTMENTS- | ||||||||||||
OTHER THAN INVESTMENTS IN RELATED PARTIES | |||||||||||||
Form 10-K - Year Ended December 31, 2014 | |||||||||||||
Baldwin & Lyons, Inc. and Subsidiaries | |||||||||||||
(Dollars in thousands) | |||||||||||||
Column A | Column B | Column C | Column D | ||||||||||
Amount At | |||||||||||||
Which Shown | |||||||||||||
Fair | In The Balance | ||||||||||||
Type of Investment | Cost | Value | Sheet (A) | ||||||||||
Fixed Maturities: | |||||||||||||
Bonds: | |||||||||||||
U.S. government obligations | 101,058 | 101,094 | 101,094 | ||||||||||
Mortgage-backed securities | 42,040 | 42,506 | 42,506 | ||||||||||
State and municipal obligations | 113,133 | 113,777 | 113,777 | ||||||||||
Foreign government obligations | 28,332 | 27,466 | 27,466 | ||||||||||
Corporate securities | 170,822 | 166,966 | 166,966 | ||||||||||
Total fixed maturities | 455,385 | 451,809 | 451,809 | ||||||||||
Equity Securities: | |||||||||||||
Common Stocks: | |||||||||||||
Industrial, miscellaneous and all other | 78,778 | 162,107 | 162,107 | ||||||||||
Total equity securities | 78,778 | 162,107 | 162,107 | ||||||||||
Limited partnerships | 81,230 | 81,230 | 81,230 | ||||||||||
Short-term: | |||||||||||||
Certificates of deposit | 2,966 | 2,966 | 2,966 | ||||||||||
Total short-term and other | 2,966 | 2,966 | 2,966 | ||||||||||
Total investments | $ | 618,359 | $ | 698,112 | $ | 698,112 | |||||||
(A) Investments presented above do not include $59,309 of money market funds classified with cash and cash equivalents in the balance sheet. | |||||||||||||
SCHEDULE_II_CONDENSED_FINANCIA
SCHEDULE II CONDENSED FINANCIAL INFORMATION OF REGISTRANT | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
SCHEDULE II CONDENSED FINANCIAL INFORMATION OF REGISTRANT [Abstract] | |||||||||||||
SCHEDULE II CONDENSED FINANCIAL INFORMATION OF REGISTRANT | SCHEDULE II | ||||||||||||
CONDENSED FINANCIAL INFORMATION OF REGISTRANT | |||||||||||||
Form 10-K | |||||||||||||
Baldwin & Lyons, Inc. | |||||||||||||
(Dollars in thousands) | |||||||||||||
Condensed Balance Sheets | |||||||||||||
31-Dec | |||||||||||||
2014 | 2013 | ||||||||||||
Assets | |||||||||||||
Investment in subsidiaries | $ | 415,304 | $ | 398,008 | |||||||||
Due from affiliates | 2,762 | 2,465 | |||||||||||
Investments other than subsidiaries: | |||||||||||||
Fixed maturities | 11,924 | 11,093 | |||||||||||
Limited partnerships | 233 | 248 | |||||||||||
12,157 | 11,341 | ||||||||||||
Cash and cash equivalents | 16,615 | 9,848 | |||||||||||
Accounts receivable | 5,157 | 7,075 | |||||||||||
Other assets | 17,905 | 13,453 | |||||||||||
Total assets | $ | 469,900 | $ | 442,190 | |||||||||
Liabilities and shareholders' equity | |||||||||||||
Liabilities: | |||||||||||||
Premiums payable | $ | 27,850 | $ | 30,004 | |||||||||
Deposits from insureds | 18,303 | 16,307 | |||||||||||
Notes payable to bank | 20,000 | 10,000 | |||||||||||
Other liabilities | 4,251 | 4,155 | |||||||||||
70,404 | 60,466 | ||||||||||||
Shareholders' equity: | |||||||||||||
Common stock: | |||||||||||||
Class A | 112 | 112 | |||||||||||
Class B | 527 | 525 | |||||||||||
Additional paid-in capital | 51,854 | 50,594 | |||||||||||
Unrealized net gains on investments | 51,840 | 49,089 | |||||||||||
Foreign exchange adjustment | 390 | 1,401 | |||||||||||
Retained earnings | 294,773 | 280,003 | |||||||||||
399,496 | 381,724 | ||||||||||||
Total liabilities and shareholders' equity | $ | 469,900 | $ | 442,190 | |||||||||
SCHEDULE II | |||||||||||||
CONDENSED FINANCIAL INFORMATION OF REGISTRANT | |||||||||||||
Form 10-K | |||||||||||||
Baldwin & Lyons, Inc. | |||||||||||||
(Dollars in thousands) | |||||||||||||
Condensed Statements of Operations | |||||||||||||
Year Ended December 31 | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Revenue: | |||||||||||||
Commissions and service fees | $ | 22,153 | $ | 21,597 | $ | 20,753 | |||||||
Dividends from subsidiaries | 15,000 | 15,000 | 14,000 | ||||||||||
Net investment income | 102 | 54 | 48 | ||||||||||
Net realized losses on investments | (27 | ) | (11 | ) | (49 | ) | |||||||
Other | 126 | 41 | 24 | ||||||||||
37,354 | 36,681 | 34,776 | |||||||||||
Expenses: | |||||||||||||
Salary and related items | 15,543 | 15,965 | 15,410 | ||||||||||
Other | 7,978 | 6,633 | 7,098 | ||||||||||
23,521 | 22,598 | 22,508 | |||||||||||
Income before federal income taxes | |||||||||||||
and equity in undistributed | |||||||||||||
income of subsidiaries | 13,833 | 14,083 | 12,268 | ||||||||||
Federal income tax benefit | (294 | ) | (348 | ) | (629 | ) | |||||||
14,127 | 14,431 | 12,897 | |||||||||||
Equity in undistributed income | |||||||||||||
of subsidiaries | 15,590 | 22,157 | 19,022 | ||||||||||
Net income | $ | 29,717 | $ | 36,588 | $ | 31,919 | |||||||
SCHEDULE II | |||||||||||||
CONDENSED FINANCIAL INFORMATION OF REGISTRANT | |||||||||||||
Form 10-K | |||||||||||||
Baldwin & Lyons, Inc. | |||||||||||||
(Dollars in thousands) | |||||||||||||
Condensed Statements of Cash Flows | |||||||||||||
Year Ended December 31 | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Net cash provided by operating activities | $ | 19,719 | $ | 15,125 | $ | 20,735 | |||||||
Investing activities: | |||||||||||||
Purchases of long-term investments | (6,398 | ) | (10,322 | ) | (8,944 | ) | |||||||
Sales or maturities of long-term investments | 5,253 | 9,982 | 8,902 | ||||||||||
Decrease in notes receivable from employees | - | - | 1,252 | ||||||||||
Distributions from limited partnerships | 13 | - | - | ||||||||||
Net purchases of property and equipment | (6,873 | ) | (1,775 | ) | (834 | ) | |||||||
Other | - | (362 | ) | 228 | |||||||||
Net cash provided by (used in) investing activities | (8,005 | ) | (2,477 | ) | 604 | ||||||||
Financing activities: | |||||||||||||
Dividends paid to shareholders | (14,947 | ) | (14,943 | ) | (14,886 | ) | |||||||
Drawings on line of credit | 10,000 | - | - | ||||||||||
Net cash used in financing activities | (4,947 | ) | (14,943 | ) | (14,886 | ) | |||||||
Increase (decrease) in cash and cash equivalents | 6,767 | (2,295 | ) | 6,453 | |||||||||
Cash and cash equivalents at beginning of year | 9,848 | 12,143 | 5,690 | ||||||||||
Cash and cash equivalents at end of year | $ | 16,615 | $ | 9,848 | $ | 12,143 | |||||||
Note to Condensed Financial Statements--Basis of PresentationThe Company's investment in subsidiaries is stated at cost plus equity in the undistributed earnings of subsidiaries since the date of acquisition. The Company's share of net income of its subsidiaries is included in income using the equity method. These financial statements should be read in conjunction with the Company's consolidated financial statements. | |||||||||||||
SCHEDULE_III_SUPPLEMENTARY_INS
SCHEDULE III SUPPLEMENTARY INSURANCE INFORMATION | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||||||||||
SCHEDULE III SUPPLEMENTARY INSURANCE INFORMATION [Abstract] | |||||||||||||||||||||||||||||||||||||||||
SCHEDULE III SUPPLEMENTARY INSURANCE INFORMATION | SCHEDULE III -- SUPPLEMENTARY INSURANCE INFORMATION | ||||||||||||||||||||||||||||||||||||||||
Form 10-K | |||||||||||||||||||||||||||||||||||||||||
Baldwin & Lyons, Inc. and Subsidiaries | |||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||
Column A | Column B | Column C | Column D | Column E | Column F | Column G | Column H | Column I | Column J | Column K | |||||||||||||||||||||||||||||||
As of December 31 | Year Ended December 31 | ||||||||||||||||||||||||||||||||||||||||
Reserves | |||||||||||||||||||||||||||||||||||||||||
for Unpaid | Other | Benefits, | Amortization | ||||||||||||||||||||||||||||||||||||||
Deferred | Claims | Policy | Claims, | of Deferred | |||||||||||||||||||||||||||||||||||||
Policy | and Claim | Claims and | Net | Net | Losses and | Policy | Other | Net | |||||||||||||||||||||||||||||||||
Acquisition | Acquisition | Unearned | Benefits | Premium | Investment | Settlement | Acquisition | Operating | Premiums | ||||||||||||||||||||||||||||||||
Segment | Costs | Expenses | Premiums | Payable | Earned | Income | Expenses | Costs | Expenses | Written | |||||||||||||||||||||||||||||||
(A) (C) | (A) | (A) (B) (C) | |||||||||||||||||||||||||||||||||||||||
Property/Casualty | |||||||||||||||||||||||||||||||||||||||||
Insurance | |||||||||||||||||||||||||||||||||||||||||
2014 | $ | 2,263 | $ | 449,133 | $ | 23,659 | --- | $ | 224,683 | $ | 9,055 | $ | 139,308 | $ | 48,872 | $ | 14,033 | $ | 224,258 | ||||||||||||||||||||||
2013 | 2,319 | 408,469 | 26,303 | --- | 202,785 | 8,770 | 133,005 | 47,414 | 14,459 | 201,817 | |||||||||||||||||||||||||||||||
2012 | 3,091 | 373,667 | 28,792 | --- | 186,586 | 9,930 | 122,924 | 41,957 | 12,057 | 178,908 | |||||||||||||||||||||||||||||||
Reinsurance | |||||||||||||||||||||||||||||||||||||||||
2014 | --- | $ | 56,969 | $ | 11,360 | --- | $ | 36,944 | $ | 9,055 | $ | 20,288 | --- | $ | 14,033 | $ | 37,913 | ||||||||||||||||||||||||
2013 | --- | 66,001 | 10,390 | --- | 49,958 | 8,770 | 17,696 | --- | 14,459 | 51,867 | |||||||||||||||||||||||||||||||
2012 | --- | 81,787 | 8,481 | --- | 50,875 | 9,930 | 15,164 | --- | 12,057 | 54,770 | |||||||||||||||||||||||||||||||
(A) Allocations of certain expenses have been made to investment income, settlement expenses and other operating expenses and are based on a number of assumptions and estimates. Results among these categories would change if different methods were applied. | |||||||||||||||||||||||||||||||||||||||||
(B) Commission allowances relating to reinsurance ceded are offset against other operating expenses. | |||||||||||||||||||||||||||||||||||||||||
(C) Amounts are not broken down into separate segments; entire consolidated amount included in each segment. |
SCHEDULE_IV_REINSURANCE
SCHEDULE IV - REINSURANCE | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
SCHEDULE IV -- REINSURANCE [Abstract] | |||||||||||||||||||||
SCHEDULE IV -- REINSURANCE | SCHEDULE IV -- REINSURANCE | ||||||||||||||||||||
Form 10-K | |||||||||||||||||||||
Baldwin & Lyons, Inc. and Subsidiaries | |||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||
Column A | Column B | Column C | Column D | Column E | Column F | ||||||||||||||||
% of | |||||||||||||||||||||
Ceded | Assumed | Amount | |||||||||||||||||||
Direct | to Other | from Other | Net | Assumed to | |||||||||||||||||
Premiums | Companies | Companies | Amount | Net | |||||||||||||||||
Premiums Earned - | |||||||||||||||||||||
Property/casualty insurance: | |||||||||||||||||||||
Years Ended December 31: | |||||||||||||||||||||
2014 | $ | 342,656 | $ | 119,248 | $ | 38,219 | $ | 261,627 | 14.1 | ||||||||||||
2013 | 313,842 | 113,882 | 52,783 | 252,743 | 19.8 | ||||||||||||||||
2012 | 287,982 | 103,712 | 53,191 | 237,461 | 21.4 | ||||||||||||||||
Note: Included in Ceded to Other Companies is $1,275, $2,825 and $2,316 for 2014, 2013 and 2012, respectively, relating to retrocessions associated with premiums assumed from other companies. Amount Assumed to Net percentage above considers the impact of this retrocession. | |||||||||||||||||||||
SCHEDULE_VI_SUPPLEMENTAL_INFOR
SCHEDULE VI SUPPLEMENTAL INFORMATION CONCERNING PROPERTY/CASUALTY INSURANCE OPERATIONS | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||||||||||||||
SCHEDULE VI SUPPLEMENTAL INFORMATION CONCERNING PROPERTY/CASUALTY INSURANCE OPERATIONS [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||
SCHEDULE VI SUPPLEMENTAL INFORMATION CONCERNING PROPERTY/CASUALTY INSURANCE OPERATIONS | SCHEDULE VI--SUPPLEMENTAL INFORMATION | ||||||||||||||||||||||||||||||||||||||||||||
CONCERNING PROPERTY/CASUALTY INSURANCE OPERATIONS | |||||||||||||||||||||||||||||||||||||||||||||
Form 10-K | |||||||||||||||||||||||||||||||||||||||||||||
Baldwin & Lyons, Inc. and Subsidiaries | |||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||||||
Column A | Column B | Column C | Column D | Column E | Column F | Column G | Column H | Column I | Column J | Column K | |||||||||||||||||||||||||||||||||||
As of December 31 | Year Ended December 31 | ||||||||||||||||||||||||||||||||||||||||||||
Reserves | Claims and Claim | Amortiza- | |||||||||||||||||||||||||||||||||||||||||||
for Unpaid | Discount, | Adjustment Expenses | tion of | ||||||||||||||||||||||||||||||||||||||||||
Deferred | Claims | if any | Incurred Related to | Deferred | Paid Claims | ||||||||||||||||||||||||||||||||||||||||
AFFILIATION | Policy | and Claim | Deducted | Net | -1 | -2 | Policy | and Claim | Net | ||||||||||||||||||||||||||||||||||||
WITH | Acquisi- | Adjustment | in | Unearned | Earned | Investment | Current | Prior | Acquisition | Adjustment | Premiums | ||||||||||||||||||||||||||||||||||
REGISTRANT | tion Costs | Expenses | Column C | Premiums | Premiums | Income | Year | Years | Costs | Expenses | Written | ||||||||||||||||||||||||||||||||||
Consolidated Property/Casualty Subsidiaries: | (A) | ||||||||||||||||||||||||||||||||||||||||||||
2014 | $ | 2,263 | $ | 506,102 | $ | 3,129 | $ | 35,019 | $ | 261,627 | $ | 9,055 | $ | 169,950 | $ | (10,354 | ) | $ | 48,872 | $ | 152,101 | $ | 262,171 | ||||||||||||||||||||||
2013 | 2,319 | 474,470 | 5,885 | 36,693 | 252,743 | 8,770 | 156,264 | (5,563 | ) | 47,414 | 151,849 | 253,684 | |||||||||||||||||||||||||||||||||
2012 | 3,091 | 455,454 | 6,118 | 37,273 | 237,461 | 9,930 | 147,963 | (9,875 | ) | 41,957 | 138,945 | 233,678 | |||||||||||||||||||||||||||||||||
(A) Loss reserves on certain reinsurance assumed and permanent total disability worker's compensation claims have been discounted to present value using pretax interest rates not exceeding 3.5%. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2014 | |
Summary of Significant Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation: The consolidated financial statements include the accounts of Baldwin & Lyons, Inc. and its wholly owned subsidiaries (the “Company"). All significant inter-company transactions and accounts have been eliminated in consolidation. |
Use of Estimate | Use of Estimates: Preparation of the consolidated financial statements requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results will differ from those estimates. |
Cash and Cash Equivalents | Cash and Cash Equivalents: The Company considers investments in money market funds to be cash equivalents. Carrying amounts for these instruments approximate their fair values. |
Investments | Investments: Carrying amounts for fixed maturity securities represent fair value and are based on quoted market prices, where available, or broker/dealer quotes for specific securities where quoted market prices are not available. Equity securities are carried at quoted market prices (fair value). The Company accounts for investments in limited partnerships using the equity method of accounting, which requires an investor in a limited partnership to record its proportionate share of the limited partnership’s net income. To the extent that the limited partnership investees include both realized and unrealized investment gains or losses in the determination of net income or loss, then the Company would also recognize, through its statements of operations, its proportionate share of the investee’s unrealized as well as realized investment gains or losses. |
Other investments, if any, are carried at either market value or cost, depending on the nature of the investment. Short-term investments are carried at cost, which approximates their fair values. | |
Realized gains and losses on disposals of investments are determined by specific identification of cost of investments sold and are included in income. All fixed maturity and equity securities are considered to be available for sale; the related unrealized net gains or losses (net of applicable tax effect) are reflected directly in shareholders’ equity. Included within available for sale fixed maturity securities are insurance linked securities and convertible debt securities. The changes in fair values of insurance-linked securities and portions of the changes in fair values of convertible debt securities are reflected as a component of net realized gains (losses) on investments. | |
In accordance with the Financial Accounting Standard Board’s (“FASB”) other-than-temporary impairment (“OTTI”) guidance, if a fixed maturity security is in an unrealized loss position and the Company has the intent to sell the fixed maturity security, or it is more likely than not that the Company will have to sell the fixed maturity security before recovery of its amortized cost basis, the decline in value is deemed to be other-than-temporary and is recorded to net realized losses on investments in the consolidated statements of operations. For impaired fixed maturity securities that the Company does not intend to sell or in cases where it is more likely than not that the Company will not have to sell such securities, but the Company expects that it will not fully recover the amortized cost basis, the credit component of the other-than-temporary impairment is recognized in net realized losses on investments in the consolidated statements of operations and the non-credit component of the other-than-temporary impairment is recognized directly in shareholder’s equity (accumulated other comprehensive income). | |
The credit component of an other-than-temporary impairment is determined by comparing the net present value of projected future cash flows with the amortized cost basis of the fixed maturity security. The net present value is calculated by discounting the Company’s best estimate of projected future cash flows at the appropriate effective interest rate. | |
The unrealized net gains or losses (net of applicable tax effect) related to equity securities are reflected directly in shareholders’ equity, unless a decline in value is determined to be other-than-temporary, in which case the loss is charged to income. In determining if and when a decline in market value below cost is other-than-temporary, an objective analysis is made of each individual security where current market value is less than cost. For any equity security where the unrealized loss exceeds 20% of original or adjusted cost, and where that decline has existed for a period of at least six months, the decline is treated as an other-than-temporary impairment. Additionally, the Company takes into account any known subjective information in evaluating for impairment, without consideration to the Company’s quantitative criteria defined above, as well as the Company’s intent and ability to retain the equity security for a period of time sufficient to allow for such recovery in fair value. | |
Property and Equipment | Property and Equipment: Property and equipment are carried at cost, less accumulated depreciation. Depreciation is computed principally by the straight-line method. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets: Goodwill is not amortized. Rather, it is tested for impairment in accordance with FASB guidance, at the reporting-unit level. Goodwill is tested annually (during the fourth quarter) or more often if events or circumstances, such as adverse changes in the business climate, indicate there may be impairment. Intangible assets determined to have finite lives, such as customer relationships and employment agreements, are amortized over their estimated useful lives in a manner that best reflects the economic benefits of the intangible asset. In addition, impairment testing is performed on these amortizing intangible assets if impairment indicators are noted. |
Reserves for Losses and Loss Expenses | Reserves for Losses and Loss Expenses: The reserves for losses and loss expenses, minor portions of which are discounted, are determined using case basis evaluations and statistical analyses and represent estimates of the ultimate cost of all reported and unreported losses which are unpaid at year end. These reserves include estimates of future trends in claim severity and frequency and other factors which could vary as the losses are ultimately settled. While actual results will differ from such estimates, management believes that the reserves for losses and loss expenses are adequate. The estimates are continually reviewed and as adjustments to these reserves become necessary, such adjustments are reflected in current operations. |
Recognition of Revenue and Costs | Recognition of Revenue and Costs: Premiums are earned over the period for which insurance protection is provided. A reserve for unearned premiums, computed by the daily pro-rata method, is established to reflect amounts applicable to subsequent accounting periods. Commissions to unaffiliated companies and premium taxes applicable to unearned premiums are deferred and expensed as the related premiums are earned. The Company does not defer acquisition costs which are not directly variable with the production of premium. If it is determined that expected losses and deferred expenses will likely exceed the related unearned premiums, the asset representing deferred policy acquisition costs is reduced and an expense is charged against current operations to reflect any such premium deficiency. In the event that the expected premium deficiency exceeds deferred policy acquisition costs, an additional liability would be recorded with a corresponding expense to current operations for the amount of the excess premium deficiency. Anticipated investment income is considered in determining recoverability of deferred acquisition costs. |
Reinsurance | Reinsurance: Reinsurance premiums, commissions, expense reimbursements and reserves related to reinsured business are accounted for on bases consistent with those used in accounting for the original policies issued and the terms of the reinsurance contracts. Premiums ceded to other insurers have been reported as a reduction of premium earned. Amounts applicable to reinsurance ceded for unearned premium and claim loss reserves have been reported as reinsurance recoverable assets. Certain reinsurance contracts provide for additional or return premiums and commissions based upon profits or losses to the reinsurer over prescribed periods. Estimates of additional or return premiums and commissions are adjusted quarterly to recognize actual loss experience to date as well as projected loss experience applicable to the various contract periods. Estimates of reinstatement premiums on reinsurance contracts covering catastrophic events are, to the extent reasonably determinable, recorded concurrently with the related loss. |
Should impairment in the ability of a reinsurer to satisfy its obligations to the Company be determined to exist, current year operations would be charged in amounts sufficient to provide for the Company’s additional liability. Such charges, when incurred, are included in other operating expenses, rather than losses and loss expenses incurred, since the inability of the Company to collect from reinsurers is a credit risk rather than a deficiency associated with the loss reserving process. | |
The Company accounts for foreign and domestic reinsurance using the periodic method. Under the periodic method, premiums are recognized as revenue ratably over the contract term, and claims, including an estimate of claims incurred but not reported, are recognized as they occur. | |
Deferred Taxes | Deferred Taxes: Deferred income tax assets and liabilities are recognized for temporary differences between the financial statement and tax return bases of assets and liabilities based on enacted tax rates and laws. The deferred tax benefits of the deferred tax assets are recognized to the extent realization of such benefits is more likely than not. Deferred income tax expense or benefit generally represents the net change in deferred income tax assets and liabilities during the year. Current income tax expense represents the tax liability associated with revenues and expenses currently taxable or deductible on various income tax returns for the year reported. |
Restricted Stock | Restricted Stock: Restricted shares vest ratably over the vesting period from the date of grant and are accelerated for retirement eligible recipients in accordance with the non-substantive post-grant date vesting clause of Accounting Standard Codification (“ASC”) 715, Compensation-Retirement Benefits. Restricted stock is valued based on the closing price of the stock on the day the award is granted. Non-vested restricted shares will be forfeited should an executive’s employment terminate for any reason other than death, disability, or retirement as defined by the Compensation Committee. |
Earnings Per Share | Earnings Per Share: Diluted earnings per share of common stock are based on the average number of shares of Class A and Class B common stock outstanding during the year, adjusted for the dilutive effect, if any, of restricted stock awards outstanding. Basic earnings per share are presented exclusive of the effect of share-based awards outstanding. |
Comprehensive Income | Comprehensive Income: The Company records accumulated other comprehensive income from unrealized gains and losses on available-for-sale securities as a separate component of shareholders’ equity. Foreign exchange adjustments are generally not material and the Company has no defined benefit pension plan. A reclassification adjustment to other comprehensive income is made for gains or losses during the period included in net income. |
Fair Value Measurements | Fair Value Measurements: The Company provides disclosures related to recurring and non-recurring fair value measurements with separate disclosures for the amounts of significant transfers in and out of Level 1 and Level 2 fair value measurements, along with an explanation for the transfers. Additionally, separate disclosures are provided for purchases, sales, issuances and settlements on a gross basis for Level 3 fair value measurements as well as additional clarification for both the level of disaggregation reported for each class of assets or liabilities and disclosures of inputs and valuation techniques used to measure fair value for both recurring and non-recurring fair value measurements for assets and liabilities categorized as Level 2 or Level 3. |
Investments_Tables
Investments (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Investments [Abstract] | |||||||||||||||||||||||||
Summary of available for sale securities | Note B - Investments | ||||||||||||||||||||||||
The following is a summary of available for sale securities at December 31: | |||||||||||||||||||||||||
Net | |||||||||||||||||||||||||
Cost or | Gross | Gross | Unrealized | ||||||||||||||||||||||
Fair | Amortized | Unrealized | Unrealized | Gains | |||||||||||||||||||||
Value | Cost | Gains | Losses | (Losses) | |||||||||||||||||||||
2014:00:00 | |||||||||||||||||||||||||
Fixed maturities: | |||||||||||||||||||||||||
U.S. government obligations | $ | 101,094 | $ | 101,058 | $ | 108 | $ | (72 | ) | $ | 36 | ||||||||||||||
Residential mortgage-backed securities | 6,066 | 5,830 | 273 | (37 | ) | 236 | |||||||||||||||||||
Commercial mortgage-backed securities | 36,440 | 36,210 | 630 | (400 | ) | 230 | |||||||||||||||||||
State and municipal obligations | 113,777 | 113,133 | 784 | (140 | ) | 644 | |||||||||||||||||||
Corporate securities | 166,966 | 170,822 | 2,005 | (5,861 | ) | (3,856 | ) | ||||||||||||||||||
Foreign government obligations | 27,466 | 28,332 | 114 | (980 | ) | (866 | ) | ||||||||||||||||||
Total fixed maturities | 451,809 | 455,385 | 3,914 | (7,490 | ) | (3,576 | ) | ||||||||||||||||||
Equity securities: | |||||||||||||||||||||||||
Financial institutions | 25,343 | 10,100 | 15,303 | (60 | ) | 15,243 | |||||||||||||||||||
Industrial & miscellaneous | 136,764 | 68,678 | 70,260 | (2,174 | ) | 68,086 | |||||||||||||||||||
Total equity securities | 162,107 | 78,778 | 85,563 | (2,234 | ) | 83,329 | |||||||||||||||||||
Total | $ | 613,916 | $ | 534,163 | $ | 89,477 | $ | (9,724 | ) | 79,753 | |||||||||||||||
Applicable federal income taxes | (27,913 | ) | |||||||||||||||||||||||
Net unrealized gains - net of tax | $ | 51,840 | |||||||||||||||||||||||
2013:00:00 | |||||||||||||||||||||||||
Fixed maturities: | |||||||||||||||||||||||||
U.S. government obligations | $ | 113,389 | $ | 113,348 | $ | 81 | $ | (40 | ) | $ | 41 | ||||||||||||||
Residential mortgage-backed securities | 13,252 | 12,058 | 1,334 | (140 | ) | 1,194 | |||||||||||||||||||
Commercial mortgage-backed securities | 28,565 | 28,406 | 308 | (149 | ) | 159 | |||||||||||||||||||
State and municipal obligations | 115,250 | 115,278 | 407 | (435 | ) | (28 | ) | ||||||||||||||||||
Corporate securities | 137,215 | 136,991 | 3,207 | (2,983 | ) | 224 | |||||||||||||||||||
Foreign government obligations | 23,879 | 23,689 | 588 | (398 | ) | 190 | |||||||||||||||||||
Total fixed maturities | 431,550 | 429,770 | 5,925 | (4,145 | ) | 1,780 | |||||||||||||||||||
Equity securities: | |||||||||||||||||||||||||
Financial institutions | 18,850 | 7,780 | 11,171 | (101 | ) | 11,070 | |||||||||||||||||||
Industrial & miscellaneous | 126,978 | 64,307 | 63,009 | (338 | ) | 62,671 | |||||||||||||||||||
Total equity securities | 145,828 | 72,087 | 74,180 | (439 | ) | 73,741 | |||||||||||||||||||
Total | $ | 577,378 | $ | 501,857 | $ | 80,105 | $ | (4,584 | ) | 75,521 | |||||||||||||||
Applicable federal income taxes | (26,432 | ) | |||||||||||||||||||||||
Net unrealized gains - net of tax | $ | 49,089 | |||||||||||||||||||||||
Fixed maturity and equity security investments in unrealized loss position | The following table summarizes, for fixed maturity and equity security investments in an unrealized loss position at December 31, the aggregate fair value and gross unrealized loss categorized by the duration those securities have been continuously in an unrealized loss position. | ||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
Number of Securities | Fair Value | Gross Unrealized Loss | Number of Securities | Fair Value | Gross Unrealized Loss | ||||||||||||||||||||
Fixed maturity securities: | |||||||||||||||||||||||||
12 months or less | 591 | $ | 176,756 | $ | (6,083 | ) | 451 | $ | 123,145 | $ | (3,105 | ) | |||||||||||||
Greater than 12 months | 140 | 27,667 | (1,407 | ) | 53 | 18,249 | (1,040 | ) | |||||||||||||||||
Total fixed maturities | 731 | 204,423 | (7,490 | ) | 504 | 141,394 | (4,145 | ) | |||||||||||||||||
Equity securities: | |||||||||||||||||||||||||
12 months or less | 33 | 13,538 | (2,170 | ) | 10 | 1,682 | (204 | ) | |||||||||||||||||
Greater than 12 months | 3 | 686 | (64 | ) | 2 | 1,980 | (235 | ) | |||||||||||||||||
Total equity securities | 36 | 14,224 | (2,234 | ) | 12 | 3,662 | (439 | ) | |||||||||||||||||
Total | 767 | $ | 218,647 | $ | (9,724 | ) | 516 | $ | 145,056 | $ | (4,584 | ) | |||||||||||||
Fair value and cost or amortized cost of fixed maturity investments by contractual maturity | The fair value and the cost or amortized cost of fixed maturity investments at December 31, 2014, by contractual maturity, is shown below. Actual maturities may differ from contractual maturities because borrowers have, in some cases, the right to call or prepay obligations with or without call or prepayment penalties. Pre-refunded municipal bonds are classified based on their pre-refunded call dates. | ||||||||||||||||||||||||
Fair Value | Cost or Amortized Cost | ||||||||||||||||||||||||
One year or less | $ | 130,407 | 28.9 | % | $ | 130,322 | 28.6 | % | |||||||||||||||||
Excess of one year to five years | 189,182 | 41.9 | 192,990 | 42.4 | |||||||||||||||||||||
Excess of five years to ten years | 47,209 | 10.4 | 48,176 | 10.6 | |||||||||||||||||||||
Excess of ten years | 9,377 | 2.1 | 8,744 | 1.9 | |||||||||||||||||||||
Total maturities | 376,175 | 83.3 | 380,232 | 83.5 | |||||||||||||||||||||
Asset-backed securities | 75,634 | 16.7 | 75,153 | 16.5 | |||||||||||||||||||||
$ | 451,809 | 100 | % | $ | 455,385 | 100 | % | ||||||||||||||||||
Major categories of investment income | Major categories of investment income for the years ended December 31 are summarized as follows: | ||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Interest on fixed maturities | $ | 8,806 | $ | 9,023 | $ | 10,052 | |||||||||||||||||||
Dividends on equity securities | 2,693 | 2,166 | 2,121 | ||||||||||||||||||||||
Money market funds, Short-term and other | 37 | 49 | 43 | ||||||||||||||||||||||
11,536 | 11,238 | 12,216 | |||||||||||||||||||||||
Investment expenses | (2,481 | ) | (2,468 | ) | (2,286 | ) | |||||||||||||||||||
Net investment income | $ | 9,055 | $ | 8,770 | $ | 9,930 | |||||||||||||||||||
Realized gains (losses) on investments | Gains and losses on investments, including equity method earnings from limited partnerships, for the years ended December 31 are summarized below: | ||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Fixed maturities: | |||||||||||||||||||||||||
Gross gains | $ | 6,480 | $ | 7,235 | $ | 3,860 | |||||||||||||||||||
Gross losses | (4,596 | ) | (4,371 | ) | (3,961 | ) | |||||||||||||||||||
Net gains (losses) | 1,884 | 2,864 | (101 | ) | |||||||||||||||||||||
Equity securities: | |||||||||||||||||||||||||
Gross gains | 7,467 | 15,374 | 3,191 | ||||||||||||||||||||||
Gross losses | (1,529 | ) | (2,718 | ) | (1,131 | ) | |||||||||||||||||||
Net gains | 5,938 | 12,656 | 2,060 | ||||||||||||||||||||||
Limited partnerships - net gain | 7,108 | 7,995 | 7,052 | ||||||||||||||||||||||
Total net gains | $ | 14,930 | $ | 23,515 | $ | 9,011 | |||||||||||||||||||
Adjustments for other-than-temporary impairments | Gain and loss activity for fixed maturity and equity security investments, as shown in the previous table, include adjustments for other-than-temporary impairment for the years ended December 31 summarized as follows: | ||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Cumulative charges to income at beginning of year | $ | 6,770 | $ | 7,773 | $ | 8,178 | |||||||||||||||||||
Writedowns based on objective and subjective criteria | 689 | 742 | 888 | ||||||||||||||||||||||
Recovery of prior writedowns upon sale or disposal | (291 | ) | (1,745 | ) | (1,293 | ) | |||||||||||||||||||
Net pre-tax realized gain (loss) | (398 | ) | 1,003 | 405 | |||||||||||||||||||||
Cumulative charges to income at end of year | $ | 7,168 | $ | 6,770 | $ | 7,773 | |||||||||||||||||||
Addition (reduction) to earnings per share from net | |||||||||||||||||||||||||
after-tax OTI gain (loss) | $ | (.02 | ) | $ | 0.04 | $ | 0.02 | ||||||||||||||||||
Unrealized gain on investments previously | |||||||||||||||||||||||||
written down at end of the year - see note below | $ | 17,127 | $ | 13,129 | $ | 8,158 | |||||||||||||||||||
Financial information of significant limited partnership investment | The summarized financial information of the significant limited partnership investment as of and for the years ended December 31 is as follows: | ||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Total assets | $ | 565,500 | $ | 493,028 | $ | 641,071 | |||||||||||||||||||
Total partners' capital | 542,700 | 444,337 | 559,745 | ||||||||||||||||||||||
Net increase (decrease) in partners' capital resulting from operations | 125,700 | (64,550 | ) | 60,734 |
Loss_and_Loss_Expense_Reserves1
Loss and Loss Expense Reserves (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Loss and Loss Expense Reserves [Abstract] | |||||||||||||
Summary of activity in reserves for losses and loss expenses | The major components of the developments shown above are as follows for the years ended December 31: | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Property and casualty insurance | $ | (5,423 | ) | $ | (1,725 | ) | $ | (7,111 | ) | ||||
Reinsurance | (4,931 | ) | (3,838 | ) | (2,764 | ) | |||||||
Totals | $ | (10,354 | ) | $ | (5,563 | ) | $ | (9,875 | ) | ||||
Major components of developments of claims' (savings) deficiency | The major components of the developments shown above are as follows for the years ended December 31: | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Property and casualty insurance | $ | (5,423 | ) | $ | (1,725 | ) | $ | (7,111 | ) | ||||
Reinsurance | (4,931 | ) | (3,838 | ) | (2,764 | ) | |||||||
Totals | $ | (10,354 | ) | $ | (5,563 | ) | $ | (9,875 | ) | ||||
Reinsurance_Tables
Reinsurance (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Reinsurance [Abstract] | |||||||||||||||||||||||||
Impact of reinsurance ceded and assumed on the company's net premium written and earned | The following table summarizes the impact of reinsurance ceded and assumed on the Company’s net premium written and earned for the most recent three years: | ||||||||||||||||||||||||
Premiums Written | Premiums Earned | ||||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||||||||
Direct | $ | 343,200 | $ | 314,784 | $ | 284,200 | $ | 342,656 | $ | 313,842 | $ | 287,982 | |||||||||||||
Ceded on direct | (118,942 | ) | (112,967 | ) | (105,292 | ) | (117,973 | ) | (111,057 | ) | (101,396 | ) | |||||||||||||
Net direct | 224,258 | 201,817 | 178,908 | 224,683 | 202,785 | 186,586 | |||||||||||||||||||
Assumed | 39,188 | 54,692 | 57,086 | 38,219 | 52,783 | 53,191 | |||||||||||||||||||
Ceded on assumed | (1,275 | ) | (2,825 | ) | (2,316 | ) | (1,275 | ) | (2,825 | ) | (2,316 | ) | |||||||||||||
Net assumed | 37,913 | 51,867 | 54,770 | 36,944 | 49,958 | 50,875 | |||||||||||||||||||
Net | $ | 262,171 | $ | 253,684 | $ | 233,678 | $ | 261,627 | $ | 252,743 | $ | 237,461 | |||||||||||||
Components of reinsurance recoverable | Components of reinsurance recoverable at December 31 are as follows: | ||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
Case unpaid losses, net of valuation allowance | $ | 143,403 | $ | 133,484 | |||||||||||||||||||||
Incurred but not reported unpaid losses and loss expenses | 66,325 | 52,157 | |||||||||||||||||||||||
Paid losses and loss expenses | 6,910 | 4,126 | |||||||||||||||||||||||
Unearned premiums | 3,583 | 5,801 | |||||||||||||||||||||||
$ | 220,221 | $ | 195,568 | ||||||||||||||||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Income Taxes [Abstract] | ||||||||||||||
Significant components of deferred tax assets and liabilities | Significant components of the Company's deferred tax assets and liabilities as of December 31 are as follows: | |||||||||||||
2014 | 2013 | |||||||||||||
Deferred tax liabilities: | ||||||||||||||
Unrealized gain on fixed income and equity security investments | $ | 27,914 | $ | 26,432 | ||||||||||
Deferred acquisition costs | 1,341 | 1,829 | ||||||||||||
Salvage and subrogation | 2,373 | 2,638 | ||||||||||||
Limited partnership investments | 4,636 | 2,612 | ||||||||||||
Other | 1,229 | 866 | ||||||||||||
Total deferred tax liabilities | 37,493 | 34,377 | ||||||||||||
Deferred tax assets: | ||||||||||||||
Loss and loss expense reserves | 10,973 | 11,071 | ||||||||||||
Unearned premiums discount | 2,201 | 2,162 | ||||||||||||
Other-than-temporary investment declines | 2,049 | 2,053 | ||||||||||||
Deferred compensation | 1,565 | 880 | ||||||||||||
Deferred ceding commission | 549 | 1,018 | ||||||||||||
Other | 183 | 342 | ||||||||||||
Total deferred tax assets | 17,520 | 17,526 | ||||||||||||
Net deferred tax liabilities | $ | (19,973 | ) | $ | (16,851 | ) | ||||||||
Summary of the difference between federal income taxes expense computed at the statutory rate | A summary of the difference between federal income tax expense computed at the statutory rate and that reported in the consolidated financial statements is as follows: | |||||||||||||
2014 | 2013 | 2012 | ||||||||||||
Statutory federal income rate applied to pretax income | $ | 15,539 | $ | 19,218 | $ | 16,312 | ||||||||
Tax effect of (deduction): | ||||||||||||||
Tax-exempt investment income | (924 | ) | (811 | ) | (933 | ) | ||||||||
Net reduction of tax positions | (75 | ) | (116 | ) | (693 | ) | ||||||||
Other | 141 | 31 | 1 | |||||||||||
Federal income tax expense | $ | 14,681 | $ | 18,322 | $ | 14,687 | ||||||||
Federal income tax expense | Federal income tax expense consists of the following: | |||||||||||||
2014 | 2013 | 2012 | ||||||||||||
Taxes on pre-tax income: | ||||||||||||||
Current | $ | 13,041 | $ | 17,383 | $ | 10,819 | ||||||||
Deferred | 1,640 | 939 | 3,868 | |||||||||||
$ | 14,681 | $ | 18,322 | $ | 14,687 | |||||||||
Components of provisions for deferred federal income taxes (credits) | The components of the provision for deferred federal income taxes are as follows: | |||||||||||||
2014 | 2013 | 2012 | ||||||||||||
Limited partnerships | $ | 2,025 | $ | 1,058 | $ | 3,013 | ||||||||
Discounts of loss and loss expense reserves | 113 | 313 | (57 | ) | ||||||||||
Unearned premium discount | (38 | ) | (65 | ) | 265 | |||||||||
Deferred compensation | (685 | ) | (146 | ) | 112 | |||||||||
Other-than-temporary investment declines | (19 | ) | 680 | 169 | ||||||||||
Deferred acquisitions costs and ceding commission | (20 | ) | (271 | ) | (520 | ) | ||||||||
Other | 264 | (630 | ) | 886 | ||||||||||
Provision for deferred federal income tax | $ | 1,640 | $ | 939 | $ | 3,868 |
Shareholders_Equity_Tables
Shareholders' Equity (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Shareholders' Equity [Abstract] | |||||||||||||||||||||
Changes in common stock outstanding and additional paid-in capital | Note F - Shareholders' Equity | ||||||||||||||||||||
Changes in common stock outstanding and additional paid-in capital are as follows: | |||||||||||||||||||||
Additional | |||||||||||||||||||||
Class A | Class B | Paid-in | |||||||||||||||||||
Shares | Amount | Shares | Amount | Capital | |||||||||||||||||
Balance at January 1, 2012 | 2,623,109 | $ | 112 | 12,225,348 | $ | 522 | $ | 48,751 | |||||||||||||
Restricted stock grants | - | - | 64,687 | 2 | 1,524 | ||||||||||||||||
Balance at December 31, 2012 | 2,623,109 | 112 | 12,290,035 | 524 | 50,275 | ||||||||||||||||
Restricted stock grants | - | - | 14,156 | 1 | 319 | ||||||||||||||||
Balance at December 31, 2013 | 2,623,109 | 112 | 12,304,191 | 525 | 50,594 | ||||||||||||||||
Restricted stock grants | - | - | 52,198 | 2 | 1,260 | ||||||||||||||||
Balance at December 31, 2014 | 2,623,109 | $ | 112 | 12,356,389 | $ | 527 | $ | 51,854 |
Other_Operating_Expenses_Table
Other Operating Expenses (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Other Operating Expenses [Abstract] | ||||||||||||||
Details of other operating expenses | Note G - Other Operating Expenses | |||||||||||||
Details of other operating expenses for the years ended December 31: | ||||||||||||||
2014 | 2013 | 2012 | ||||||||||||
Amortization of gross deferred policy acquisition costs | $ | 48,872 | $ | 47,414 | $ | 41,957 | ||||||||
Other underwriting expenses | 37,830 | 35,281 | 27,242 | |||||||||||
Expense allowances from reinsurers | (23,797 | ) | (20,822 | ) | (15,185 | ) | ||||||||
Total underwriting expenses | 62,905 | 61,873 | 54,014 | |||||||||||
Operating expenses of non-insurance companies | 25,143 | 23,488 | 23,416 | |||||||||||
Total other operating expenses | $ | 88,048 | $ | 85,361 | $ | 77,430 |
Stock_Purchase_and_Option_Plan1
Stock Purchase and Option Plans (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Stock Purchase and Option Plans [Abstract] | |||||||||
Summary of stock issuances | The table below provides detail of the stock issuances for 2014, 2013 and 2012: | ||||||||
Effective | Number of Shares | Vesting | Value | ||||||
Date | Issued | Date | Period | Per Share | |||||
5/8/12 | 20,119 | 5/8/13 | 7/1/2012 - 6/30/2013 | $21.87 | |||||
5/7/13 | 18,106 | 5/7/14 | 7/1/2013 - 6/30/2014 | $24.30 | |||||
5/8/14 | 17,237 | 5/8/15 | 7/1/2014 - 6/30/2015 | $25.53 |
Reportable_Segments_Tables
Reportable Segments (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Reportable Segments [Abstract] | ||||||||||||||
Schedule of segment reporting information, by segment | The following table provides certain profit and loss information for each reportable segment for the years ended | |||||||||||||
December 31: | ||||||||||||||
2014 | 2013 | 2012 | ||||||||||||
Direct and assumed premium written: | ||||||||||||||
Property and casualty insurance | $ | 343,200 | $ | 314,784 | $ | 284,200 | ||||||||
Reinsurance | 39,188 | 54,692 | 57,086 | |||||||||||
Totals | $ | 382,388 | $ | 369,476 | $ | 341,286 | ||||||||
Net premium earned: | ||||||||||||||
Property and casualty insurance | $ | 224,683 | $ | 202,785 | $ | 186,586 | ||||||||
Reinsurance | 36,944 | 49,958 | 50,875 | |||||||||||
Totals | $ | 261,627 | $ | 252,743 | $ | 237,461 | ||||||||
Underwriting gain: | ||||||||||||||
Property and casualty insurance | $ | 32,663 | $ | 25,558 | $ | 23,491 | ||||||||
Reinsurance | 2,147 | 12,278 | 20,567 | |||||||||||
Totals | $ | 34,810 | $ | 37,836 | $ | 44,058 | ||||||||
Reconciliation of operating profit (loss) from segments to consolidated | The following table reconciles reportable segment profits to the Company’s consolidated income before federal income taxes: | |||||||||||||
2014 | 2013 | 2012 | ||||||||||||
Profit: | ||||||||||||||
Underwriting gain | $ | 34,810 | $ | 37,836 | $ | 44,058 | ||||||||
Net investment income | 9,055 | 8,770 | 9,930 | |||||||||||
Net realized gains on investments | 14,930 | 23,515 | 9,011 | |||||||||||
Corporate expenses | (14,397 | ) | (15,211 | ) | (16,393 | ) | ||||||||
Income before federal income taxes | $ | 44,398 | $ | 54,910 | $ | 46,606 |
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Earnings Per Share [Abstract] | |||||||||||||
Reconciliation of the denominators used in the calculation of basic and diluted earnings per share | The following is a reconciliation of the denominators used in the calculation of basic and diluted earnings per share for the years ended December 31: | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Average share outstanding for basic earnings per share | 14,963,959 | 14,906,416 | 14,838,767 | ||||||||||
Dilutive effect of share equivalents | 11,935 | 17,345 | 29,482 | ||||||||||
Average shares outstanding for diluted earnings per share | 14,975,894 | 14,923,761 | 14,868,249 |
Fair_Value_Tables
Fair Value (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Fair Value [Abstract] | |||||||||||||||||||||
Fair value measurements by level for assets measured at fair value on a recurring basis | The following tables summarize fair value measurements by level for assets measured at fair value on a recurring basis: | ||||||||||||||||||||
As of December 31, 2014: | |||||||||||||||||||||
Description | Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||
Fixed maturities: | |||||||||||||||||||||
U.S. government obligations | $ | 101,094 | $ | - | $ | 101,094 | $ | - | |||||||||||||
Residential mortgage-backed securities | 6,066 | - | 6,066 | - | |||||||||||||||||
Commercial mortgage-backed securities | 36,440 | - | 36,440 | - | |||||||||||||||||
State and municipal obligations | 113,777 | - | 113,777 | - | |||||||||||||||||
Corporate securities | 164,068 | - | 151,860 | 12,208 | |||||||||||||||||
Options embedded in convertible securities | 2,898 | - | 2,898 | - | |||||||||||||||||
Foreign government obligations | 27,466 | - | 27,466 | - | |||||||||||||||||
Total fixed maturities | 451,809 | - | 439,601 | 12,208 | |||||||||||||||||
Equity securities: | |||||||||||||||||||||
Financial institutions | 25,343 | 25,343 | - | - | |||||||||||||||||
Industrial & miscellaneous | 136,764 | 136,764 | - | - | |||||||||||||||||
Total equity securities | 162,107 | 162,107 | - | - | |||||||||||||||||
Short term | 2,966 | 2,966 | - | - | |||||||||||||||||
Cash equivalents | 59,309 | - | 59,309 | - | |||||||||||||||||
Total | $ | 676,191 | $ | 165,073 | $ | 498,910 | $ | 12,208 | |||||||||||||
As of December 31, 2013: | |||||||||||||||||||||
Description | Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||
Fixed maturities: | |||||||||||||||||||||
U.S. government obligations | $ | 113,389 | $ | 113,389 | $ | - | $ | - | |||||||||||||
Residential mortgage-backed securities | 13,252 | - | 13,252 | - | |||||||||||||||||
Commercial mortgage-backed securities | 28,565 | - | 28,565 | - | |||||||||||||||||
State and municipal obligations | 115,250 | - | 115,250 | - | |||||||||||||||||
Corporate securities | 134,635 | - | 134,635 | - | |||||||||||||||||
Options embedded in convertible securities | 2,580 | - | 2,580 | - | |||||||||||||||||
Foreign government obligations | 23,879 | - | 23,879 | - | |||||||||||||||||
Total fixed maturities | 431,550 | 113,389 | 318,161 | - | |||||||||||||||||
Equity securities: | |||||||||||||||||||||
Financial institutions | 18,850 | 18,850 | - | - | |||||||||||||||||
Industrial & miscellaneous | 126,978 | 126,978 | - | - | |||||||||||||||||
Total equity securities | 145,828 | 145,828 | - | - | |||||||||||||||||
Short term | 4,891 | 4,891 | - | - | |||||||||||||||||
Cash equivalents | 52,002 | - | 52,002 | - | |||||||||||||||||
Total | $ | 634,271 | $ | 264,108 | $ | 370,163 | $ | - | |||||||||||||
Reconciliation of beginning and ending balances of assets measured at fair value on a recurring basis using level 3 inputs | A reconciliation of the beginning and ending balances of assets measured at fair value on a recurring basis using Level 3 inputs is as follows for the years ended December 31: | ||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
Beginning of period balance | $ | - | $ | 11,682 | |||||||||||||||||
Total gains or losses (realized or unrealized) | |||||||||||||||||||||
included in income | - | 1,017 | |||||||||||||||||||
Purchases | - | 1,258 | |||||||||||||||||||
Settlements | - | (6,698 | ) | ||||||||||||||||||
Transfers into Level 3 | 12,208 | (7,259 | ) | ||||||||||||||||||
End of period balance | $ | 12,208 | $ | - | |||||||||||||||||
Summary of the carrying value and fair value by level of financial instruments | A summary of the carrying value and fair value by level of financial instruments not recorded at fair value on the Company’s consolidated balance sheet at December 31, 2014 and 2013 is as follows: | ||||||||||||||||||||
2014:00:00 | Carrying | Fair Value | |||||||||||||||||||
Value | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||
Assets: | |||||||||||||||||||||
Limited partnerships | $ | 81,230 | $ | - | $ | - | $ | 81,230 | $ | 81,230 | |||||||||||
Liabilities: | |||||||||||||||||||||
Short-term borrowings | 20,000 | - | 20,000 | - | 20,000 | ||||||||||||||||
2013:00:00 | |||||||||||||||||||||
Assets: | |||||||||||||||||||||
Limited partnerships | $ | 68,988 | $ | - | $ | - | $ | 68,988 | $ | 68,988 | |||||||||||
Liabilities: | |||||||||||||||||||||
Short-term borrowings | 10,000 | - | 10,000 | - | 10,000 |
Quarterly_Results_of_Operation1
Quarterly Results of Operations (Unaudited) (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||
Quarterly Results of Operations (Unaudited) [Abstract] | |||||||||||||||||||||||||||||||||
Quarterly results of operations | Note P - Quarterly Results of Operations (Unaudited) | ||||||||||||||||||||||||||||||||
Quarterly results of operations are as follows: | |||||||||||||||||||||||||||||||||
Results by Quarter | |||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||
1st | 2nd | 3rd | 4th | 1st | 2nd | 3rd | 4th | ||||||||||||||||||||||||||
Net premiums earned | $ | 63,842 | $ | 62,905 | $ | 65,947 | $ | 68,933 | $ | 61,098 | $ | 61,775 | $ | 64,448 | $ | 65,422 | |||||||||||||||||
Net investment income | 2,294 | 2,090 | 2,073 | 2,599 | 2,410 | 1,985 | 2,192 | 2,183 | |||||||||||||||||||||||||
Net gains on investments | 4,070 | 8,089 | 658 | 2,113 | 14,347 | 719 | 1,430 | 7,019 | |||||||||||||||||||||||||
Losses and loss expenses incurred | 39,289 | 40,282 | 38,693 | 41,332 | 34,533 | 38,343 | 36,967 | 40,858 | |||||||||||||||||||||||||
Net income | 6,361 | 9,340 | 5,770 | 8,246 | 14,943 | 4,907 | 7,771 | 8,967 | |||||||||||||||||||||||||
Net income per share - diluted | $ | 0.42 | $ | 0.62 | $ | 0.39 | $ | 0.55 | $ | 1 | $ | 0.33 | $ | 0.52 | $ | 0.6 |
Leases_Tables
Leases (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Leases [Abstract] | |||||
Future lease payments for operating leases with initial or remaining noncancelable terms of one year or more | At December 31, 2014, future lease payments for operating leases with initial or remaining noncancelable terms of one year or more consisted of the following: | ||||
2015 | 144 | ||||
2016 | 138 | ||||
2017 | 106 | ||||
2018 | - | ||||
2019 | - | ||||
Thereafter | - | ||||
Total minimum payments required | $ | 388 |
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Accumulated Other Comprehensive Income [Abstract] | |||||||||||||
Reconciliation of the components of accumulated other comprehensive income | A reconciliation of the components of accumulated other comprehensive income at December 31 is as follows: | ||||||||||||
2014 | 2013 | ||||||||||||
Investments: | |||||||||||||
Total unrealized gain before federal income taxes | $ | 79,753 | $ | 75,521 | |||||||||
Deferred tax liability | (27,913 | ) | (26,432 | ) | |||||||||
Net unrealized gains on investments | 51,840 | 49,089 | |||||||||||
Foreign exchange adjustment: | |||||||||||||
Total unrealized gains | 600 | 2,155 | |||||||||||
Deferred tax liability | (210 | ) | (754 | ) | |||||||||
Net unrealized gains on foreign exchange adjustment | 390 | 1,401 | |||||||||||
Accumulated other comprehensive income | $ | 52,230 | $ | 50,490 | |||||||||
Other comprehensive income (loss) reclassification adjustments | Other comprehensive income reclassification adjustments for the years ended December 31 are as follows: | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Investments: | |||||||||||||
Pre-tax holding gains on debt and equity | |||||||||||||
securities arising during period | $ | 12,055 | $ | 36,477 | $ | 15,612 | |||||||
Less: applicable federal income taxes | 4,220 | 12,766 | 5,464 | ||||||||||
7,835 | 23,711 | 10,148 | |||||||||||
Pre-tax gains on debt and equity securities | |||||||||||||
included in net income during period | 7,823 | 15,520 | 1,959 | ||||||||||
Less: applicable federal income taxes | 2,739 | 5,431 | 686 | ||||||||||
5,084 | 10,089 | 1,273 | |||||||||||
Change in unrealized gains on investments | $ | 2,751 | $ | 13,622 | $ | 8,875 | |||||||
Reconciliation of accumulated other comprehensive income and retained earnings | Reconciliation of accumulated other comprehensive income and retained earnings for the years ended December 31 are as follows: | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Beginning accumulated other comprehensive income | $ | 50,490 | $ | 37,443 | $ | 28,351 | |||||||
Change in foreign exchange adjustment | (1,011 | ) | (575 | ) | 217 | ||||||||
Change in unrealized net gains on investments | 2,751 | 13,622 | 8,875 | ||||||||||
Ending accumulated other comprehensive income | $ | 52,230 | $ | 50,490 | $ | 37,443 | |||||||
2014 | 2013 | 2012 | |||||||||||
Beginning retained earnings | $ | 280,003 | $ | 258,358 | $ | 241,325 | |||||||
Net income | 29,717 | 36,588 | 31,919 | ||||||||||
Dividends | (14,947 | ) | (14,943 | ) | (14,886 | ) | |||||||
Ending retained earnings | $ | 294,773 | $ | 280,003 | $ | 258,358 |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Details) | 12 Months Ended |
Dec. 31, 2014 | |
Summary of Significant Accounting Policies [Abstract] | |
Percentage of decline on cost of securities treated as other-than-temporary impairment (in hundredths) | 20.00% |
Period of decline on the cost of equity securities that will be considered other-than-temporary impairment | 6 months |
Investments_Details
Investments (Details) (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Partnership | Security | ||
Investment | |||
Agreement | |||
Security | |||
Major Categories of Investment Income [Line Items] | |||
Investment Income | $11,536 | $11,238 | $12,216 |
Investment expenses | -2,481 | -2,468 | -2,286 |
Net investment income | 9,055 | 8,770 | 9,930 |
Available-for-sale Securities, Fair Value to Amortized Cost Basis [Abstract] | |||
Applicable federal income taxes | -27,913 | -26,432 | |
Net unrealized gains - net of tax | 51,840 | 49,089 | |
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | |||
Number of Securities, Total | 767 | 516 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | |||
Fair value, total | 218,647 | 145,056 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses [Abstract] | |||
Gross unrealized loss, total | -9,724 | -4,584 | |
Gain and Loss on Investment [Abstract] | |||
Limited partnerships - net gain | 7,108 | 7,995 | 7,052 |
Total net gains | 14,930 | 23,515 | 9,011 |
Shareholders' equity, net of deferred federal income taxes and undistributed earnings from limited partnership | 28,596 | ||
Adjustments for other-than-temporary impairment [Roll Forward] | |||
Cumulative charges to income at beginning of year | 6,770 | 7,773 | 8,178 |
Writedowns based on objective and subjective criteria | 689 | 742 | 888 |
Recovery of prior writedowns upon sale or disposal | -291 | -1,745 | -1,293 |
Net pre-tax realized gain (loss) | -398 | 1,003 | 405 |
Cumulative charges to income at end of year | 7,168 | 6,770 | 7,773 |
Addition (reduction) to earnings per share from net after-tax OTI gain (loss) | ($0.02) | $0.04 | $0.02 |
Unrealized gain on investments previously written down at end of the year - see note below | 17,127 | 13,129 | 8,158 |
Committed funds for bridge loans | 7,850 | ||
Number of bridge loan agreements | 2 | ||
Limited Partners' Capital Account [Line Items] | |||
Number of partnerships investment | 2 | ||
Market value of equity and fixed maturity securities portfolio managed by broker dealers | 3,334 | 19,822 | |
Total commissions and net fees earned by broker dealers and affiliates | 212 | 239 | 186 |
Summarized financial information of significant limited partnership investments [Abstract] | |||
Total assets | 1,144,247 | 1,072,270 | |
Regulatory deposits with various insurance departments in United States and Canada, fair value | 76,406 | 63,447 | |
Time certificate of deposit included in short-term investments | 2,966 | ||
Percentage of fixed maturities invested in investment grade fixed maturity (in hundredths) | 85.00% | ||
Total fixed maturity investments | 15,430 | ||
Number of different investments in fixed maturity | 5 | ||
Number of different third party insurance companies issuing fixed maturity investments with guarantees | 2 | ||
Amount of largest exposure to a single investment | 5,150 | ||
Fixed maturity investment below investment grade | 66,817 | ||
Percentage of fixed maturity investment to total invested assets (in hundredths) | 8.80% | ||
Number of investments in diversified portfolio including catastrophe bonds | 40 | ||
Net unrealized loss position of diversified portfolio | 3,188 | ||
Limited Partnership [Member] | |||
Limited Partners' Capital Account [Line Items] | |||
Commitment to make additional contributions to various limited partnerships | 2,868 | ||
Total investment in three limited partnerships | 23,000 | ||
Number of partnerships investment | 2 | ||
Aggregate estimated value of limited partnership | 46,987 | ||
Number of directors that are executive officers, directors, and owners of the organization managing the limited partnership | 4 | ||
Ownership interest in limited partnership, minimum (in hundredths) | 5.00% | ||
Ownership interest in limited partnership, maximum (in hundredths) | 16.00% | ||
Investment gains (losses), net of fees | 7,088 | 1,154 | 2,485 |
Management fees | 697 | 640 | 650 |
Performance-based fees | 0 | 18 | 0 |
Summarized financial information of significant limited partnership investments [Abstract] | |||
Total partners' capital | 46,987 | ||
Significant Limited Partnership [Member] | |||
Limited Partners' Capital Account [Line Items] | |||
Aggregate estimated value of limited partnership | 542,700 | 444,337 | 559,745 |
Number of significant investments in public and private equity market in India | 1 | ||
Significant investment in public and private equity markets in India, value | 29,868 | 22,692 | |
Estimated ownership interest in significant limited partnership investment (in hundredths) | 5.00% | ||
Earnings from significant limited partnership investment | 7,176 | -3,176 | 2,404 |
Summarized financial information of significant limited partnership investments [Abstract] | |||
Total assets | 565,500 | 493,028 | 641,071 |
Total partners' capital | 542,700 | 444,337 | 559,745 |
Net increase (decrease) in partners' capital resulting from operations | 125,700 | -64,550 | 60,734 |
U.S. Government Obligations [Member] | |||
Available-for-sale Debt Securities, Amortized Cost Basis [Abstract] | |||
Fair value | 101,094 | 113,389 | |
Cost or amortized cost | 101,058 | 113,348 | |
Gross unrealized gains | 108 | 81 | |
Gross unrealized losses | -72 | -40 | |
Net unrealized gains (losses) | 36 | 41 | |
Available-for-sale Securities, Debt Maturities, Fair Value [Abstract] | |||
Available-for-sale Securities, Debt Securities, Total | 101,094 | 113,389 | |
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis [Abstract] | |||
Cost or amortized cost | 101,058 | 113,348 | |
Residential Mortgage-Backed Securities [Member] | |||
Available-for-sale Debt Securities, Amortized Cost Basis [Abstract] | |||
Fair value | 6,066 | 13,252 | |
Cost or amortized cost | 5,830 | 12,058 | |
Gross unrealized gains | 273 | 1,334 | |
Gross unrealized losses | -37 | -140 | |
Net unrealized gains (losses) | 236 | 1,194 | |
Available-for-sale Securities, Debt Maturities, Fair Value [Abstract] | |||
Available-for-sale Securities, Debt Securities, Total | 6,066 | 13,252 | |
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis [Abstract] | |||
Cost or amortized cost | 5,830 | 12,058 | |
Commercial Mortgage-backed Securities [Member] | |||
Available-for-sale Debt Securities, Amortized Cost Basis [Abstract] | |||
Fair value | 36,440 | 28,565 | |
Cost or amortized cost | 36,210 | 28,406 | |
Gross unrealized gains | 630 | 308 | |
Gross unrealized losses | -400 | -149 | |
Net unrealized gains (losses) | 230 | 159 | |
Available-for-sale Securities, Debt Maturities, Fair Value [Abstract] | |||
Available-for-sale Securities, Debt Securities, Total | 36,440 | 28,565 | |
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis [Abstract] | |||
Cost or amortized cost | 36,210 | 28,406 | |
State and Municipal Obligations [Member] | |||
Available-for-sale Debt Securities, Amortized Cost Basis [Abstract] | |||
Fair value | 113,777 | 115,250 | |
Cost or amortized cost | 113,133 | 115,278 | |
Gross unrealized gains | 784 | 407 | |
Gross unrealized losses | -140 | -435 | |
Net unrealized gains (losses) | 644 | -28 | |
Available-for-sale Securities, Debt Maturities, Fair Value [Abstract] | |||
Available-for-sale Securities, Debt Securities, Total | 113,777 | 115,250 | |
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis [Abstract] | |||
Cost or amortized cost | 113,133 | 115,278 | |
Corporate Securities [Member] | |||
Available-for-sale Debt Securities, Amortized Cost Basis [Abstract] | |||
Fair value | 166,966 | 137,215 | |
Cost or amortized cost | 170,822 | 136,991 | |
Gross unrealized gains | 2,005 | 3,207 | |
Gross unrealized losses | -5,861 | -2,983 | |
Net unrealized gains (losses) | -3,856 | 224 | |
Available-for-sale Securities, Debt Maturities, Fair Value [Abstract] | |||
Available-for-sale Securities, Debt Securities, Total | 166,966 | 137,215 | |
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis [Abstract] | |||
Cost or amortized cost | 170,822 | 136,991 | |
Foreign Government Obligations [Member] | |||
Available-for-sale Debt Securities, Amortized Cost Basis [Abstract] | |||
Fair value | 27,466 | 23,879 | |
Cost or amortized cost | 28,332 | 23,689 | |
Gross unrealized gains | 114 | 588 | |
Gross unrealized losses | -980 | -398 | |
Net unrealized gains (losses) | -866 | 190 | |
Available-for-sale Securities, Debt Maturities, Fair Value [Abstract] | |||
Available-for-sale Securities, Debt Securities, Total | 27,466 | 23,879 | |
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis [Abstract] | |||
Cost or amortized cost | 28,332 | 23,689 | |
Total Fixed Maturities [Member] | |||
Available-for-sale Debt Securities, Amortized Cost Basis [Abstract] | |||
Fair value | 451,809 | 431,550 | |
Cost or amortized cost | 455,385 | 429,770 | |
Gross unrealized gains | 3,914 | 5,925 | |
Gross unrealized losses | -7,490 | -4,145 | |
Net unrealized gains (losses) | -3,576 | 1,780 | |
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | |||
Number of Securities 12 months or less | 591 | 451 | |
Number of Securities Greater than 12 months | 140 | 53 | |
Number of Securities, Total | 731 | 504 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | |||
Fair value, 12 months or less | 176,756 | 123,145 | |
Fair value, Greater than 12 months | 27,667 | 18,249 | |
Fair value, total | 204,423 | 141,394 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses [Abstract] | |||
Gross unrealized loss, less than 12 months | -6,083 | -3,105 | |
Gross unrealized loss, 12 months or longer | -1,407 | -1,040 | |
Gross unrealized loss, total | -7,490 | -4,145 | |
Average unrealized loss for securities in loss position (in hundredths) | 4.00% | ||
Available-for-sale Securities, Debt Maturities, Fair Value [Abstract] | |||
One year or less | 130,407 | ||
Excess of one year to five years | 189,182 | ||
Excess of five years to ten years | 47,209 | ||
Excess of ten years | 9,377 | ||
Total maturities | 376,175 | ||
Asset-backed securities | 75,634 | ||
Available-for-sale Securities, Debt Securities, Total | 451,809 | 431,550 | |
Percentage of Available for sale Securities, Debt Maturities, Fair Value [Abstract] | |||
One year or less (in hundredths) | 28.90% | ||
Excess of one year to five years (in hundredths) | 41.90% | ||
Excess of five years to ten years (in hundredths) | 10.40% | ||
Excess of ten years (in hundredths) | 2.10% | ||
Total maturities (in hundredths) | 83.30% | ||
Asset-backed securities (in hundredths) | 16.70% | ||
Available-for-sale Securities, Debt Securities, Total (in hundredths) | 100.00% | ||
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis [Abstract] | |||
One year or less | 130,322 | ||
Excess of one year to five years | 192,990 | ||
Excess of five years to ten years | 48,176 | ||
Excess of ten years | 8,744 | ||
Total maturities | 380,232 | ||
Asset-backed securities | 75,153 | ||
Cost or amortized cost | 455,385 | 429,770 | |
Percentage of Available for sale Securities, Debt Maturities, Amortized Cost Basis, Fiscal Year Maturity [Abstract] | |||
One year or less (in hundredths) | 28.60% | ||
Excess of one year to five years (in hundredths) | 42.40% | ||
Excess of five years to ten years (in hundredths) | 10.60% | ||
Excess of ten years (in hundredths) | 1.90% | ||
Total maturities (in hundredths) | 83.50% | ||
Asset-backed securities (in hundredths) | 16.50% | ||
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis, Total (in hundredths) | 100.00% | ||
Gain and Loss on Investment [Abstract] | |||
Gross gains | 6,480 | 7,235 | 3,860 |
Gross losses | -4,596 | -4,371 | -3,961 |
Net gains (losses) | 1,884 | 2,864 | -101 |
Financial Institutions [Member] | |||
Available-for-sale Equity Securities, Amortized Cost Basis [Abstract] | |||
Fair value | 25,343 | 18,850 | |
Cost or amortized cost | 10,100 | 7,780 | |
Gross unrealized gains | 15,303 | 11,171 | |
Gross unrealized losses | -60 | -101 | |
Net unrealized gains (losses) | 15,243 | 11,070 | |
Industrial & Miscellaneous [Member] | |||
Available-for-sale Equity Securities, Amortized Cost Basis [Abstract] | |||
Fair value | 136,764 | 126,978 | |
Cost or amortized cost | 68,678 | 64,307 | |
Gross unrealized gains | 70,260 | 63,009 | |
Gross unrealized losses | -2,174 | -338 | |
Net unrealized gains (losses) | 68,086 | 62,671 | |
Total Equity Securities [Member] | |||
Available-for-sale Equity Securities, Amortized Cost Basis [Abstract] | |||
Fair value | 162,107 | 145,828 | |
Cost or amortized cost | 78,778 | 72,087 | |
Gross unrealized gains | 85,563 | 74,180 | |
Gross unrealized losses | -2,234 | -439 | |
Net unrealized gains (losses) | 83,329 | 73,741 | |
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | |||
Number of Securities 12 months or less | 33 | 10 | |
Number of Securities Greater than 12 months | 3 | 2 | |
Number of Securities, Total | 36 | 12 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | |||
Fair value, 12 months or less | 13,538 | 1,682 | |
Fair value, Greater than 12 months | 686 | 1,980 | |
Fair value, total | 14,224 | 3,662 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses [Abstract] | |||
Gross unrealized loss, less than 12 months | -2,170 | -204 | |
Gross unrealized loss, 12 months or longer | -64 | -235 | |
Gross unrealized loss, total | -2,234 | -439 | |
Gain and Loss on Investment [Abstract] | |||
Gross gains | 7,467 | 15,374 | 3,191 |
Gross losses | -1,529 | -2,718 | -1,131 |
Net gains (losses) | 5,938 | 12,656 | 2,060 |
Total Available-for-Sale Securities [Member] | |||
Available-for-sale Securities, Fair Value to Amortized Cost Basis [Abstract] | |||
Fair value | 613,916 | 577,378 | |
Cost or amortized cost | 534,163 | 501,857 | |
Gross unrealized gains | 89,477 | 80,105 | |
Gross unrealized losses | -9,724 | -4,584 | |
Net unrealized gains (losses) | 79,753 | 75,521 | |
Interest on fixed maturities [Member] | |||
Major Categories of Investment Income [Line Items] | |||
Investment Income | 8,806 | 9,023 | 10,052 |
Dividends on equity securities [Member] | |||
Major Categories of Investment Income [Line Items] | |||
Investment Income | 2,693 | 2,166 | 2,121 |
Money Market Funds, Short term and Other [Member] | |||
Major Categories of Investment Income [Line Items] | |||
Investment Income | $37 | $49 | $43 |
Loss_and_Loss_Expense_Reserves2
Loss and Loss Expense Reserves (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Activity in the reserve for losses and loss expenses [Roll Forward] | |||
Reserves at the beginning of the year | $288,088 | $289,236 | $290,092 |
Provision for losses and loss expenses: | |||
Claims occurring during the current year | 169,950 | 156,264 | 147,963 |
Claims occurring during prior years | -10,354 | -5,563 | -9,875 |
Total incurred | 159,596 | 150,701 | 138,088 |
Loss and loss expense payments: | |||
Claims occurring during the current year | 59,826 | 47,908 | 44,941 |
Claims occurring during prior years | 92,275 | 103,941 | 94,003 |
Total paid | 152,101 | 151,849 | 138,944 |
Reserves at the end of the year | 295,583 | 288,088 | 289,236 |
Reinsurance recoverable on unpaid losses at the end of the year | 210,519 | 186,382 | 166,218 |
Reserves, gross of reinsurance recoverable, at the end of the year | 506,102 | 474,470 | 455,454 |
Savings developed in settlements of claims with comparative developments for previous calendar years | 10,354 | ||
Period of comparative developments (in years) | 2 years | ||
Major Components of the Development of (Savings) deficiency [Abstract] | |||
Property and casualty insurance | -5,423 | -1,725 | -7,111 |
Reinsurance | -4,931 | -3,838 | -2,764 |
Total | -10,354 | -5,563 | -9,875 |
Workers' Compensation Discount [Abstract] | |||
Loss reserves on certain permanent total disability workers' compensation reserves discounted to present value at pre-tax rates (in hundredths) | 3.50% | ||
Amount of reduction in loss reserves | 3,129 | 5,885 | |
Salvage and Subrogation Recoveries [Abstract] | |||
Salvage and Subrogation Recoveries, Description | Loss reserves have been reduced by estimated salvage and subrogation recoverable. | ||
Estimated salvage and subrogation recoverable | $7,158 | $8,115 |
Reinsurance_Details
Reinsurance (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Premiums Written [Abstract] | |||||||||||
Direct | $343,200 | $314,784 | $284,200 | ||||||||
Ceded on direct | -118,942 | -112,967 | -105,292 | ||||||||
Net direct | 224,258 | 201,817 | 178,908 | ||||||||
Assumed | 39,188 | 54,692 | 57,086 | ||||||||
Ceded on assumed | -1,275 | -2,825 | -2,316 | ||||||||
Net assumed | 37,913 | 51,867 | 54,770 | ||||||||
Net | 262,171 | 253,684 | 233,678 | ||||||||
Premium Earned [Abstract] | |||||||||||
Direct | 342,656 | 313,842 | 287,982 | ||||||||
Ceded on direct | -117,973 | -111,057 | -101,396 | ||||||||
Net direct | 224,683 | 202,785 | 186,586 | ||||||||
Assumed | 38,219 | 52,783 | 53,191 | ||||||||
Ceded on assumed | -1,275 | -2,825 | -2,316 | ||||||||
Net assumed | 36,944 | 49,958 | 50,875 | ||||||||
Net | 68,933 | 65,947 | 62,905 | 63,842 | 65,422 | 64,448 | 61,775 | 61,098 | 261,627 | 252,743 | 237,461 |
Net losses and loss expenses incurred reduced by ceded reinsurance recoveries | 105,891 | 107,321 | 90,899 | ||||||||
Net losses and loss expense incurred from reinsurance assumed from non-affiliates | 23,163 | 20,014 | 16,486 | ||||||||
Retrocessional recoveries | 20,000 | ||||||||||
Components of reinsurance recoverable [Abstract] | |||||||||||
Case unpaid losses, net of valuation allowance | 143,403 | 133,484 | 143,403 | 133,484 | |||||||
Incurred but not reported unpaid losses and loss expenses | 66,325 | 52,157 | 66,325 | 52,157 | |||||||
Paid losses and loss expenses | 6,910 | 4,126 | 6,910 | 4,126 | |||||||
Unearned premiums | 3,583 | 5,801 | 3,583 | 5,801 | |||||||
Reinsurance recoverable | $220,221 | $195,568 | $220,221 | $195,568 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Deferred tax liabilities: | |||
Unrealized gain on fixed income and equity security investments | $27,914 | $26,432 | |
Deferred acquisition costs | 1,341 | 1,829 | |
Salvage and subrogation | 2,373 | 2,638 | |
Limited partnership investments | 4,636 | 2,612 | |
Other | 1,229 | 866 | |
Total deferred tax liabilities | 37,493 | 34,377 | |
Deferred tax assets: | |||
Loss and loss expense reserves | 10,973 | 11,071 | |
Unearned premiums discount | 2,201 | 2,162 | |
Other-than-temporary investment declines | 2,049 | 2,053 | |
Deferred ceding commission | 549 | 1,018 | |
Deferred compensation | 1,565 | 880 | |
Other | 183 | 342 | |
Total deferred tax assets | 17,520 | 17,526 | |
Net deferred tax liabilities | -19,973 | -16,851 | |
Summary of the Difference Between Federal Income Tax Expense computed at Statutory Rate [Abstract] | |||
Statutory federal income rate applied to pretax income | 15,539 | 19,218 | 16,312 |
Tax effect of (deduction): | |||
Tax-exempt investment income | -924 | -811 | -933 |
Net reduction of tax positions | -75 | -116 | -693 |
Other | 141 | 31 | 1 |
Federal income tax expense | 14,681 | 18,322 | 14,687 |
Taxes on pre-tax income [Abstract] | |||
Current | 13,041 | 17,383 | 10,819 |
Deferred | 1,640 | 939 | 3,868 |
Federal income tax expense | 14,681 | 18,322 | 14,687 |
Components of the provisions for deferred federal income taxes (credits) [Abstract] | |||
Limited partnerships | 2,025 | 1,058 | 3,013 |
Discounts of loss and loss expense reserves | 113 | 313 | -57 |
Unearned premium discount | -38 | -65 | 265 |
Deferred compensation | -685 | -146 | 112 |
Other-than-temporary investment declines | -19 | 680 | 169 |
Deferred acquisitions costs and ceding commission | -20 | -271 | -520 |
Other | 264 | -630 | 886 |
Provision for deferred federal income tax | 1,640 | 939 | 3,868 |
Cash flows related to federal income taxes paid, net of refunds received | $11,619 | $17,250 | $3,661 |
Shareholders_Equity_Details
Shareholders' Equity (Details) (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Amount [Abstract] | |||
Dividends paid to shareholders | $14,947 | $14,943 | $14,886 |
Cash dividends paid (in dollars per share) | $1 | $1 | $1 |
Additional Paid-in Capital [Member] | |||
Amount [Abstract] | |||
Balance, Beginning period | 50,594 | 50,275 | 48,751 |
Restricted stock grant | 1,260 | 319 | 1,524 |
Balance, Period end | 51,854 | 50,594 | 50,275 |
Class A [Member] | |||
Shares [Abstract] | |||
Balance, Beginning period (in shares) | 2,623,109 | 2,623,109 | 2,623,109 |
Restricted stock grant (in shares) | 0 | 0 | 0 |
Balance, Period end (in shares) | 2,623,109 | 2,623,109 | 2,623,109 |
Amount [Abstract] | |||
Balance, Beginning period | 112 | 112 | 112 |
Restricted stock grant | 0 | 0 | 0 |
Balance, Period end | 112 | 112 | 112 |
Stated value of common stock (in dollars per share) | $0.04 | ||
Class B [Member] | |||
Shares [Abstract] | |||
Balance, Beginning period (in shares) | 12,304,191 | 12,290,035 | 12,225,348 |
Restricted stock grant (in shares) | 52,198 | 14,156 | 64,687 |
Balance, Period end (in shares) | 12,356,389 | 12,304,191 | 12,290,035 |
Amount [Abstract] | |||
Balance, Beginning period | 525 | 524 | 522 |
Restricted stock grant | 2 | 1 | 2 |
Balance, Period end | $527 | $525 | $524 |
Stated value of common stock (in dollars per share) | $0.04 |
Other_Operating_Expenses_Detai
Other Operating Expenses (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Other Operating Expenses [Abstract] | |||
Amortization of gross deferred policy acquisition costs | $48,872 | $47,414 | $41,957 |
Other underwriting expenses | 37,830 | 35,281 | 27,242 |
Expense allowances from reinsurers | -23,797 | -20,822 | -15,185 |
Total underwriting expenses | 62,905 | 61,873 | 54,014 |
Operating expenses of non-insurance companies | 25,143 | 23,488 | 23,416 |
Total other operating expenses | $88,048 | $85,361 | $77,430 |
Employee_Benefit_Plans_Details
Employee Benefit Plans (Details) (401(k) Employee Savings and Profit Sharing Plan [Member], USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
401(k) Employee Savings and Profit Sharing Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Requisite service period | 1 year | ||
Company's contribution to the plan | $1,798 | $1,798 | $1,539 |
Stock_Purchase_and_Option_Plan2
Stock Purchase and Option Plans (Details) (USD $) | 0 Months Ended | 12 Months Ended | 0 Months Ended | |||||
In Thousands, except Share data, unless otherwise specified | 8-May-14 | 7-May-13 | 8-May-12 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Feb. 04, 2014 | Feb. 04, 2015 |
Plan | ||||||||
Summary of stock Issuances [Abstract] | ||||||||
Shares granted (in shares) | 17,237 | 18,106 | 20,119 | |||||
Vesting Date | 8-May-15 | 7-May-14 | 8-May-13 | |||||
Period | 7/1/2014 - 6/30/2015 | 7/1/2013 - 6/30/2014 | 7/1/2012 - 6/30/2013 | |||||
Value of each share issued (in dollars per share) | $25.53 | $24.30 | $21.87 | |||||
Restricted Stock Units (RSUs) [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of share based compensation plan | 1 | |||||||
Summary of stock Issuances [Abstract] | ||||||||
Period restricted stocks will vest ratably from date of grant | 3 years | |||||||
Restricted Stock Units (RSUs) [Member] | Outside Director [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Compensation cost charged against income | 440 | $440 | $440 | |||||
Restricted Stock Units (RSUs) [Member] | Class B [Member] | Outside Director [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Total value of shares issued | 440 | 440 | 440 | |||||
Restricted Stock Units (RSUs) [Member] | Class B [Member] | Executives [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Shares issued (in shares) | 45,678 | |||||||
Total value of shares issued | 1,088 | |||||||
Summary of stock Issuances [Abstract] | ||||||||
Value of each share issued (in dollars per share) | $23.81 | |||||||
Restricted Stock Units (RSUs) [Member] | Class B [Member] | Executives [Member] | Subsequent Event [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Shares issued (in shares) | 36,646 | |||||||
Total value of shares issued | $853 | |||||||
Summary of stock Issuances [Abstract] | ||||||||
Value of each share issued (in dollars per share) | $23.29 | |||||||
Stock Purchase Plan [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Purchase price of shares obligated to be repurchased, percentage of book value (in hundredths) | 90.00% | |||||||
Number of shares repurchased under the plan (in shares) | 0 | |||||||
Stock Purchase Plan [Member] | Class A [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of outstanding shares eligible for repurchase (in shares) | 121,286 | |||||||
Stock Purchase Plan [Member] | Class B [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of outstanding shares eligible for repurchase (in shares) | 339,546 |
Reportable_Segments_Details
Reportable Segments (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment Reporting Information [Line Items] | |||||||||||
Net premiums earned | $68,933 | $65,947 | $62,905 | $63,842 | $65,422 | $64,448 | $61,775 | $61,098 | $261,627 | $252,743 | $237,461 |
Reconciliation from Segment Totals to Consolidated [Abstract] | |||||||||||
Net investment income | 9,055 | 8,770 | 9,930 | ||||||||
Income before federal income taxes | 44,398 | 54,910 | 46,606 | ||||||||
Reportable Segments [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Direct and assumed premium written | 382,388 | 369,476 | 341,286 | ||||||||
Net premiums earned | 261,627 | 252,743 | 237,461 | ||||||||
Underwriting gain | 34,810 | 37,836 | 44,058 | ||||||||
Reconciliation from Segment Totals to Consolidated [Abstract] | |||||||||||
Underwriting gain | 34,810 | 37,836 | 44,058 | ||||||||
Reportable Segments [Member] | Property and Casualty Insurance [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Direct and assumed premium written | 343,200 | 314,784 | 284,200 | ||||||||
Net premiums earned | 224,683 | 202,785 | 186,586 | ||||||||
Underwriting gain | 32,663 | 25,558 | 23,491 | ||||||||
Reconciliation from Segment Totals to Consolidated [Abstract] | |||||||||||
Underwriting gain | 32,663 | 25,558 | 23,491 | ||||||||
Reportable Segments [Member] | Reinsurance [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Direct and assumed premium written | 39,188 | 54,692 | 57,086 | ||||||||
Net premiums earned | 36,944 | 49,958 | 50,875 | ||||||||
Underwriting gain | 2,147 | 12,278 | 20,567 | ||||||||
Reconciliation from Segment Totals to Consolidated [Abstract] | |||||||||||
Underwriting gain | 2,147 | 12,278 | 20,567 | ||||||||
Segment Reconciling Items [Member] | |||||||||||
Reconciliation from Segment Totals to Consolidated [Abstract] | |||||||||||
Net investment income | 9,055 | 8,770 | 9,930 | ||||||||
Net realized gains on investments | 14,930 | 23,515 | 9,011 | ||||||||
Corporate expenses | ($14,397) | ($15,211) | ($16,393) |
Reportable_Segments_Schedule_o
Reportable Segments, Schedule of Revenue by Major Customers, by Reporting Segments (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Customer | |||
Reportable Segments [Abstract] | |||
Number of reportable segments | 2 | ||
Property and Casualty Insurance [Member] | FedEx Ground, Certain Subsidiaries, and Related Entities [Member] | |||
Revenue, Major Customer [Line Items] | |||
Number of major customer | 1 | ||
Direct And Assumed Premiums Written | $8,191 | $15,615 | $19,052 |
Property and Casualty Insurance [Member] | Non-affiliated Broker on Behalf of Independent Contractors [Member] | |||
Revenue, Major Customer [Line Items] | |||
Direct And Assumed Premiums Written | $208,580 | $177,389 | $146,447 |
Earnings_Per_Share_Details
Earnings Per Share (Details) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Reconciliation of the denominators used in the calculation of basic and diluted earnings per share [Abstract] | |||
Average share outstanding for basic earnings per share (in shares) | 14,963,959 | 14,906,416 | 14,838,767 |
Dilutive effect of share equivalents (in shares) | 11,935 | 17,345 | 29,482 |
Average shares outstanding for diluted earnings per share (in shares) | 14,975,894 | 14,923,761 | 14,868,249 |
Concentrations_of_Credit_Risk_
Concentrations of Credit Risk (Details) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2014 |
Director | |
Partnership | |
Concentrations of Credit Risk [Abstract] | |
Guarantor obligations, aggregate amount of collateral held | $234,312 |
Collateral held that is equal to the ultimate losses that would be paid or due in the event of insured's default (in hundredths) | 100.00% |
Uncollateralized exposure as a percentage of shareholder's equity (in hundredths) | 42.00% |
Reinsurance recoverables, gross | 269,114 |
Largest estimated amounts due from individual reinsurers, one | 36,273 |
Second largest estimated amounts due from individual reinsurers, two | 12,002 |
Aggregate investment in limited partnerships | $46,987 |
Number of limited partnerships investment | 2 |
Number of directors that are executive officers, directors, and owners | 4 |
Acquisition_and_related_Goodwi1
Acquisition and related Goodwill and Intangibles (Details) (Transportation Specialty Insurance Agency [Member], USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Business Acquisition [Line Items] | |||
Date of acquisition agreement | 31-Oct-08 | ||
Cash purchase price | $3,500 | ||
Recorded goodwill | 3,152 | ||
Customer Relationships and Employment Agreements [Member] | |||
Business Acquisition [Line Items] | |||
Intangible assets included in other assets | 179 | ||
Amortization of intangible assets | 4 | 17 | 28 |
Accumulated amortization on intangible assets | $179 | $175 |
Debt_Details
Debt (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Debt [Abstract] | ||
Revolving line of credit limit | $40,000 | |
Line of credit maturity date | 23-Sep-18 | |
Period of fixed interest on line of credit at company's options | 1 year | |
Outstanding drawings on line of credit | 20,000 | 10,000 |
Effective interest rate (in hundredths) | 1.26% | |
Remaining unused amount under line of credit | $20,000 |
Fair_Value_Details
Fair Value (Details) (Recurring [Member], USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fixed maturities: [Abstract] | ||
U.S. government obligations | $101,094 | $113,389 |
Residential mortgage-backed securities | 6,066 | 13,252 |
Commercial mortgage-backed securities | 36,440 | 28,565 |
State and municipal obligations | 113,777 | 115,250 |
Corporate securities | 164,068 | 134,635 |
Options embedded in convertible securities | 2,898 | 2,580 |
Foreign government obligations | 27,466 | 23,879 |
Total fixed maturities | 451,809 | 431,550 |
Equity securities: [Abstract] | ||
Financial institutions | 25,343 | 18,850 |
Industrial & miscellaneous | 136,764 | 126,978 |
Total equity securities | 162,107 | 145,828 |
Short term | 2,966 | 4,891 |
Cash equivalents | 59,309 | 52,002 |
Total fair value | 676,191 | 634,271 |
Level 1 [Member] | ||
Fixed maturities: [Abstract] | ||
U.S. government obligations | 0 | 113,389 |
Residential mortgage-backed securities | 0 | 0 |
Commercial mortgage-backed securities | 0 | 0 |
State and municipal obligations | 0 | 0 |
Corporate securities | 0 | 0 |
Options embedded in convertible securities | 0 | 0 |
Foreign government obligations | 0 | 0 |
Total fixed maturities | 0 | 113,389 |
Equity securities: [Abstract] | ||
Financial institutions | 25,343 | 18,850 |
Industrial & miscellaneous | 136,764 | 126,978 |
Total equity securities | 162,107 | 145,828 |
Short term | 2,966 | 4,891 |
Cash equivalents | 0 | 0 |
Total fair value | 165,073 | 264,108 |
Level 2 [Member] | ||
Fixed maturities: [Abstract] | ||
U.S. government obligations | 101,094 | 0 |
Residential mortgage-backed securities | 6,066 | 13,252 |
Commercial mortgage-backed securities | 36,440 | 28,565 |
State and municipal obligations | 113,777 | 115,250 |
Corporate securities | 151,860 | 134,635 |
Options embedded in convertible securities | 2,898 | 2,580 |
Foreign government obligations | 27,466 | 23,879 |
Total fixed maturities | 439,601 | 318,161 |
Equity securities: [Abstract] | ||
Financial institutions | 0 | 0 |
Industrial & miscellaneous | 0 | 0 |
Total equity securities | 0 | 0 |
Short term | 0 | 0 |
Cash equivalents | 59,309 | 52,002 |
Total fair value | 498,910 | 370,163 |
Level 3 [Member] | ||
Fixed maturities: [Abstract] | ||
U.S. government obligations | 0 | 0 |
Residential mortgage-backed securities | 0 | 0 |
Commercial mortgage-backed securities | 0 | 0 |
State and municipal obligations | 0 | 0 |
Corporate securities | 12,208 | 0 |
Options embedded in convertible securities | 0 | 0 |
Foreign government obligations | 0 | 0 |
Total fixed maturities | 12,208 | 0 |
Equity securities: [Abstract] | ||
Financial institutions | 0 | 0 |
Industrial & miscellaneous | 0 | 0 |
Total equity securities | 0 | 0 |
Short term | 0 | 0 |
Cash equivalents | 0 | 0 |
Total fair value | $12,208 | $0 |
Fair_Value_Unobservable_Input_
Fair Value, Unobservable Input Reconciliation (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Fair value assets measured on recurring basis unobservable input reconciliation calculation [Roll Forward] | ||
Beginning of period balance | $0 | $11,682 |
Total gains or losses (realized or unrealized) included in income | 0 | 1,017 |
Purchases | 0 | 1,258 |
Settlements | 0 | -6,698 |
Transfers into Level 3 | 12,208 | -7,259 |
End of period balance | $12,208 | $0 |
Fair_Value_Balance_Sheet_Group
Fair Value, Balance Sheet Grouping (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Carrying Value [Member] | ||
Assets [Abstract] | ||
Limited partnerships | $81,230 | $68,988 |
Liabilities [Abstract] | ||
Short-term borrowings | 20,000 | 10,000 |
Fair Value [Member] | ||
Assets [Abstract] | ||
Limited partnerships | 81,230 | 68,988 |
Liabilities [Abstract] | ||
Short-term borrowings | 20,000 | 10,000 |
Fair Value [Member] | Level 1 [Member] | ||
Assets [Abstract] | ||
Limited partnerships | 0 | 0 |
Liabilities [Abstract] | ||
Short-term borrowings | 0 | 0 |
Fair Value [Member] | Level 2 [Member] | ||
Assets [Abstract] | ||
Limited partnerships | 0 | 0 |
Liabilities [Abstract] | ||
Short-term borrowings | 20,000 | 10,000 |
Fair Value [Member] | Level 3 [Member] | ||
Assets [Abstract] | ||
Limited partnerships | 81,230 | 68,988 |
Liabilities [Abstract] | ||
Short-term borrowings | $0 | $0 |
Quarterly_Results_of_Operation2
Quarterly Results of Operations (Unaudited) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Quarterly Results of Operations (Unaudited) [Abstract] | |||||||||||
Net premiums earned | $68,933 | $65,947 | $62,905 | $63,842 | $65,422 | $64,448 | $61,775 | $61,098 | $261,627 | $252,743 | $237,461 |
Net investment income | 2,599 | 2,073 | 2,090 | 2,294 | 2,183 | 2,192 | 1,985 | 2,410 | 9,055 | 8,770 | 9,930 |
Net gains on investments | 2,113 | 658 | 8,089 | 4,070 | 7,019 | 1,430 | 719 | 14,347 | |||
Losses and loss expenses incurred | 41,332 | 38,693 | 40,282 | 39,289 | 40,858 | 36,967 | 38,343 | 34,533 | 159,596 | 150,701 | 138,088 |
Net income | $8,246 | $5,770 | $9,340 | $6,361 | $8,967 | $7,771 | $4,907 | $14,943 | $29,717 | $36,588 | $31,919 |
Net income per share - diluted (in dollars per share) | $0.55 | $0.39 | $0.62 | $0.42 | $0.60 | $0.52 | $0.33 | $1 |
Statutory_Details
Statutory (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Statutory [Abstract] | |||
Net income (loss) of the insurance subsidiaries in accordance with statutory accounting practices | $27,143 | $30,886 | $29,262 |
Consolidated statutory capital and surplus for subsidiaries | 398,762 | 377,209 | |
Amount of statutory surplus transferred by dividend or loan to the parent company | 64,400 | ||
Additional shareholders' equity of insurance subsidiaries that could be advanced or loaned to parent company with prior notification and approval from regulatory authorities | 238,096 | ||
Minimum statutory surplus necessary for the insurance subsidiaries to satisfy statutory risk based capital requirements | 94,892 | ||
Consolidated statutory capital and surplus exceeded requirement | $303,870 | ||
Excess statutory capital and surplus to risk based capital (in hundredths) | 320.00% |
Leases_Details
Leases (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Leases [Abstract] | |||
Lease expense | $330 | $1,324 | $1,506 |
Future lease payments for operating leases with initial or remaining noncancelable term of one year or more [Abstract] | |||
2015 | 144 | ||
2016 | 138 | ||
2017 | 106 | ||
2018 | 0 | ||
2019 | 0 | ||
Thereafter | 0 | ||
Total minimum payments required | $388 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Investments [Abstract] | |||||||||||
Total unrealized gain before federal income taxes | $79,753 | $75,521 | $79,753 | $75,521 | |||||||
Deferred tax liability | -27,913 | -26,432 | -27,913 | -26,432 | |||||||
Net unrealized gains on investments | 51,840 | 49,089 | 51,840 | 49,089 | |||||||
Foreign exchange adjustment [Abstract] | |||||||||||
Gross unrealized gains | 600 | 2,155 | 600 | 2,155 | |||||||
Deferred tax liability | -210 | -754 | -210 | -754 | |||||||
Net unrealized gains on foreign exchange adjustment | 390 | 1,401 | 390 | 1,401 | |||||||
Accumulated other comprehensive income | 52,230 | 50,490 | 52,230 | 50,490 | 37,443 | ||||||
Investments [Abstract] | |||||||||||
Pre-tax holding gains on debt and equity securities arising during period | 12,055 | 36,477 | 15,612 | ||||||||
Less: applicable federal income taxes | 4,220 | 12,766 | 5,464 | ||||||||
Net unrealized gains on investments | 7,835 | 23,711 | 10,148 | ||||||||
Pre-tax gains on debt and equity securities included in net income during period | 7,823 | 15,520 | 1,959 | ||||||||
Less: applicable federal income taxes | 2,739 | 5,431 | 686 | ||||||||
Other comprehensive income (loss), reclassification adjustment for sale of securities included in net income, net of tax | 5,084 | 10,089 | 1,273 | ||||||||
Change in unrealized gains on investments | 2,751 | 13,622 | 8,875 | ||||||||
Reconciliation of Accumulated Other Comprehensive Income [Roll Forward] | |||||||||||
Beginning accumulated other comprehensive income | 50,490 | 37,443 | 50,490 | 37,443 | 28,351 | ||||||
Change in foreign exchange adjustment | -1,011 | -575 | 217 | ||||||||
Change in unrealized net gains on investments | 2,751 | 13,622 | 8,875 | ||||||||
Ending accumulated other comprehensive income | 52,230 | 50,490 | 52,230 | 50,490 | 37,443 | ||||||
Retained Earnings [Roll Forward] | |||||||||||
Beginning retained earnings | 280,003 | 258,358 | 280,003 | 258,358 | 241,325 | ||||||
Net income | 8,246 | 5,770 | 9,340 | 6,361 | 8,967 | 7,771 | 4,907 | 14,943 | 29,717 | 36,588 | 31,919 |
Dividends | -14,947 | -14,943 | -14,886 | ||||||||
Ending retained earnings | $294,773 | $280,003 | $294,773 | $280,003 | $258,358 |
SCHEDULE_I_SUMMARY_OF_INVESTME1
SCHEDULE I -SUMMARY OF INVESTMENTS-OTHER THAN INVESTMENTS IN RELATED PARTIES (Details) (USD $) | Dec. 31, 2014 | |
In Thousands, unless otherwise specified | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Amount at which shown in the balance sheet | $15,430 | |
Money markets fund classified with cash and cash equivalent and excluded from other investments in related party | 59,309 | |
Total Investments [Member] | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost | 618,359 | |
Fair value | 698,112 | |
Amount at which shown in the balance sheet | 698,112 | [1] |
Limited Partnership [Member] | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost | 81,230 | |
Fair value | 81,230 | |
Amount at which shown in the balance sheet | 81,230 | [1] |
Bonds [Member] | Total Fixed Maturities [Member] | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost | 455,385 | |
Fair value | 451,809 | |
Amount at which shown in the balance sheet | 451,809 | [1] |
Bonds [Member] | U.S Government Obligations [Member] | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost | 101,058 | |
Fair value | 101,094 | |
Amount at which shown in the balance sheet | 101,094 | [1] |
Bonds [Member] | Mortgage-backed Securities [Member] | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost | 42,040 | |
Fair value | 42,506 | |
Amount at which shown in the balance sheet | 42,506 | [1] |
Bonds [Member] | State and Municipal Obligations [Member] | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost | 113,133 | |
Fair value | 113,777 | |
Amount at which shown in the balance sheet | 113,777 | [1] |
Bonds [Member] | Foreign Government Obligations [Member] | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost | 28,332 | |
Fair value | 27,466 | |
Amount at which shown in the balance sheet | 27,466 | [1] |
Bonds [Member] | Corporate Securities [Member] | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost | 170,822 | |
Fair value | 166,966 | |
Amount at which shown in the balance sheet | 166,966 | [1] |
Common Stocks [Member] | Total Equity Securities [Member] | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost | 78,778 | |
Fair value | 162,107 | |
Amount at which shown in the balance sheet | 162,107 | [1] |
Common Stocks [Member] | Industrial, Miscellaneous, and All Others [Member] | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost | 78,778 | |
Fair value | 162,107 | |
Amount at which shown in the balance sheet | 162,107 | [1] |
Short-term [Member] | Total Short-term and Other [Member] | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost | 2,966 | |
Fair value | 2,966 | |
Amount at which shown in the balance sheet | 2,966 | [1] |
Short-term [Member] | Certificates of Deposit [Member] | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost | 2,966 | |
Fair value | 2,966 | |
Amount at which shown in the balance sheet | $2,966 | [1] |
[1] | Investments presented above do not include $59,309 of money market funds classified with cash and cash equivalents in the balance sheet. |
SCHEDULE_II_CONDENSED_FINANCIA1
SCHEDULE II CONDENSED FINANCIAL INFORMATION OF REGISTRANT (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Investments other than subsidiaries: | ||||||||||||
Fixed maturities | $451,809 | $431,550 | $451,809 | $431,550 | ||||||||
Limited partnerships | 81,230 | 68,988 | 81,230 | 68,988 | ||||||||
Total Investments | 698,112 | 651,257 | 698,112 | 651,257 | ||||||||
Cash and cash equivalents | 64,632 | 59,297 | 64,632 | 59,297 | 71,549 | |||||||
Accounts receivable | 98,144 | 100,830 | 98,144 | 100,830 | ||||||||
Other assets | 9,413 | 19,051 | 9,413 | 19,051 | ||||||||
Total Assets | 1,144,247 | 1,072,270 | 1,144,247 | 1,072,270 | ||||||||
Liabilities: | ||||||||||||
Total Liabilities | 744,751 | 690,546 | 744,751 | 690,546 | ||||||||
Shareholders' equity: | ||||||||||||
Additional paid-in capital | 51,854 | 50,594 | 51,854 | 50,594 | ||||||||
Unrealized net gains on investments | 51,840 | 49,089 | 51,840 | 49,089 | ||||||||
Foreign exchange adjustment | 390 | 1,401 | 390 | 1,401 | ||||||||
Retained earnings | 294,773 | 280,003 | 294,773 | 280,003 | 258,358 | 241,325 | ||||||
Shareholders' equity | 399,496 | 381,724 | 399,496 | 381,724 | 346,712 | 319,061 | ||||||
Total liabilities and shareholders' equity | 1,144,247 | 1,072,270 | 1,144,247 | 1,072,270 | ||||||||
Revenue: | ||||||||||||
Commissions and service fees | 6,430 | 5,944 | 5,722 | |||||||||
Net investment income | 2,599 | 2,073 | 2,090 | 2,294 | 2,183 | 2,192 | 1,985 | 2,410 | 9,055 | 8,770 | 9,930 | |
Net realized losses on investments | 14,930 | 23,515 | 9,011 | |||||||||
Total revenue | 292,042 | 290,972 | 262,124 | |||||||||
Expenses: | ||||||||||||
Other | 88,048 | 85,361 | 77,430 | |||||||||
Total expenses | 247,644 | 236,062 | 215,518 | |||||||||
Income before federal income taxes and equity in undistributed income of subsidiaries | 44,398 | 54,910 | 46,606 | |||||||||
Federal income tax benefit | 14,681 | 18,322 | 14,687 | |||||||||
Equity in undistributed income (loss) of subsidiaries | 7,108 | 7,995 | 7,052 | |||||||||
Net income | 8,246 | 5,770 | 9,340 | 6,361 | 8,967 | 7,771 | 4,907 | 14,943 | 29,717 | 36,588 | 31,919 | |
Condensed Statements of Cash Flows | ||||||||||||
Net cash provided by operating activities | 30,160 | 35,907 | 55,794 | |||||||||
Investing activities: | ||||||||||||
Distributions from limited partnerships | 1,752 | 2,528 | 3,957 | |||||||||
Net cash used in investing activities | -18,867 | -32,641 | -59,302 | |||||||||
Financing activities: | ||||||||||||
Dividends paid to shareholders | -14,947 | -14,943 | -14,886 | |||||||||
Net cash used in financing activities | -4,947 | -14,943 | -14,886 | |||||||||
Increase (decrease) in cash and cash equivalents | 5,335 | -12,252 | -18,177 | |||||||||
Cash and cash equivalents at beginning of year | 59,297 | 71,549 | 59,297 | 71,549 | 89,726 | |||||||
Cash and cash equivalents at end of year | 64,632 | 59,297 | 64,632 | 59,297 | 71,549 | |||||||
Class A [Member] | ||||||||||||
Shareholders' equity: | ||||||||||||
Common stock | 112 | 112 | 112 | 112 | ||||||||
Class B [Member] | ||||||||||||
Shareholders' equity: | ||||||||||||
Common stock | 527 | 525 | 527 | 525 | ||||||||
Parent Company [Member] | ||||||||||||
Assets | ||||||||||||
Investment in subsidiaries | 415,304 | 398,008 | 415,304 | 398,008 | ||||||||
Due from affiliates | 2,762 | 2,465 | 2,762 | 2,465 | ||||||||
Investments other than subsidiaries: | ||||||||||||
Fixed maturities | 11,924 | 11,093 | 11,924 | 11,093 | ||||||||
Limited partnerships | 233 | 248 | 233 | 248 | ||||||||
Total Investments | 12,157 | 11,341 | 12,157 | 11,341 | ||||||||
Cash and cash equivalents | 16,615 | 9,848 | 16,615 | 9,848 | 12,143 | |||||||
Accounts receivable | 5,157 | 7,075 | 5,157 | 7,075 | ||||||||
Other assets | 17,905 | 13,453 | 17,905 | 13,453 | ||||||||
Total Assets | 469,900 | 442,190 | 469,900 | 442,190 | ||||||||
Liabilities: | ||||||||||||
Premiums payable | 27,850 | 30,004 | 27,850 | 30,004 | ||||||||
Deposits from insureds | 18,303 | 16,307 | 18,303 | 16,307 | ||||||||
Notes payable to bank | 20,000 | 10,000 | 20,000 | 10,000 | ||||||||
Other liabilities | 4,251 | 4,155 | 4,251 | 4,155 | ||||||||
Total Liabilities | 70,404 | 60,466 | 70,404 | 60,466 | ||||||||
Shareholders' equity: | ||||||||||||
Additional paid-in capital | 51,854 | 50,594 | 51,854 | 50,594 | ||||||||
Unrealized net gains on investments | 51,840 | 49,089 | 51,840 | 49,089 | ||||||||
Foreign exchange adjustment | 390 | 1,401 | 390 | 1,401 | ||||||||
Retained earnings | 294,773 | 280,003 | 294,773 | 280,003 | ||||||||
Shareholders' equity | 399,496 | 381,724 | 399,496 | 381,724 | ||||||||
Total liabilities and shareholders' equity | 469,900 | 442,190 | 469,900 | 442,190 | ||||||||
Revenue: | ||||||||||||
Commissions and service fees | 22,153 | 21,597 | 20,753 | |||||||||
Dividends from subsidiaries | 15,000 | 15,000 | 14,000 | |||||||||
Net investment income | 102 | 54 | 48 | |||||||||
Net realized losses on investments | -27 | -11 | -49 | |||||||||
Other | 126 | 41 | 24 | |||||||||
Total revenue | 37,354 | 36,681 | 34,776 | |||||||||
Expenses: | ||||||||||||
Salary and related items | 15,543 | 15,965 | 15,410 | |||||||||
Other | 7,978 | 6,633 | 7,098 | |||||||||
Total expenses | 23,521 | 22,598 | 22,508 | |||||||||
Income before federal income taxes and equity in undistributed income of subsidiaries | 13,833 | 14,083 | 12,268 | |||||||||
Federal income tax benefit | -294 | -348 | -629 | |||||||||
Income (loss) | 14,127 | 14,431 | 12,897 | |||||||||
Equity in undistributed income (loss) of subsidiaries | 15,590 | 22,157 | 19,022 | |||||||||
Net income | 29,717 | 36,588 | 31,919 | |||||||||
Condensed Statements of Cash Flows | ||||||||||||
Net cash provided by operating activities | 19,719 | 15,125 | 20,735 | |||||||||
Investing activities: | ||||||||||||
Purchases of long-term investments | -6,398 | -10,322 | -8,944 | |||||||||
Sales or maturities of long-term investments | 5,253 | 9,982 | 8,902 | |||||||||
Decrease in notes receivable from employees | 0 | 0 | 1,252 | |||||||||
Distributions from limited partnerships | 13 | 0 | 0 | |||||||||
Net purchases of property and equipment | -6,873 | -1,775 | -834 | |||||||||
Other | 0 | -362 | 228 | |||||||||
Net cash used in investing activities | -8,005 | -2,477 | 604 | |||||||||
Financing activities: | ||||||||||||
Dividends paid to shareholders | -14,947 | -14,943 | -14,886 | |||||||||
Drawings on line of credit | 10,000 | 0 | 0 | |||||||||
Net cash used in financing activities | -4,947 | -14,943 | -14,886 | |||||||||
Increase (decrease) in cash and cash equivalents | 6,767 | -2,295 | 6,453 | |||||||||
Cash and cash equivalents at beginning of year | 9,848 | 12,143 | 9,848 | 12,143 | 5,690 | |||||||
Cash and cash equivalents at end of year | 16,615 | 9,848 | 16,615 | 9,848 | 12,143 | |||||||
Parent Company [Member] | Class A [Member] | ||||||||||||
Shareholders' equity: | ||||||||||||
Common stock | 112 | 112 | 112 | 112 | ||||||||
Parent Company [Member] | Class B [Member] | ||||||||||||
Shareholders' equity: | ||||||||||||
Common stock | $527 | $525 | $527 | $525 |
SCHEDULE_III_SUPPLEMENTARY_INS1
SCHEDULE III SUPPLEMENTARY INSURANCE INFORMATION (Details) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Property and Casualty Insurance [Member] | ||||||
Supplementary Insurance Information, by Segment [Line Items] | ||||||
Deferred Policy Acquisition Costs | $2,263 | $2,319 | $3,091 | |||
Reserves for Unpaid Claims and Claim Acquisition Expenses | 449,133 | 408,469 | 373,667 | |||
Unearned Premiums | 23,659 | 26,303 | 28,792 | |||
Other Policy Claims and Benefits Payable | 0 | 0 | 0 | |||
Net Premium Earned | 224,683 | 202,785 | 186,586 | |||
Net Investment Income | 9,055 | [1],[2] | 8,770 | [1],[2] | 9,930 | [1],[2] |
Benefits, Claims, Losses and Settlement Expenses | 139,308 | [1] | 133,005 | [1] | 122,924 | [1] |
Amortization of Deferred Policy Acquisition Costs | 48,872 | 47,414 | 41,957 | |||
Other Operating Expenses | 14,033 | [1],[2],[3] | 14,459 | [1],[2],[3] | 12,057 | [1],[2],[3] |
Net Premiums Written | 224,258 | 201,817 | 178,908 | |||
Reinsurance [Member] | ||||||
Supplementary Insurance Information, by Segment [Line Items] | ||||||
Deferred Policy Acquisition Costs | 0 | 0 | 0 | |||
Reserves for Unpaid Claims and Claim Acquisition Expenses | 56,969 | 66,001 | 81,787 | |||
Unearned Premiums | 11,360 | 10,390 | 8,481 | |||
Other Policy Claims and Benefits Payable | 0 | 0 | 0 | |||
Net Premium Earned | 36,944 | 49,958 | 50,875 | |||
Net Investment Income | 9,055 | [1],[2] | 8,770 | [1],[2] | 9,930 | [1],[2] |
Benefits, Claims, Losses and Settlement Expenses | 20,288 | [1] | 17,696 | [1] | 15,164 | [1] |
Amortization of Deferred Policy Acquisition Costs | 0 | 0 | 0 | |||
Other Operating Expenses | 14,033 | [1],[2],[3] | 14,459 | [1],[2],[3] | 12,057 | [1],[2],[3] |
Net Premiums Written | $37,913 | $51,867 | $54,770 | |||
[1] | Allocations of certain expenses have been made to investment income, settlement expenses and other operating expenses and are based on a number of assumptions and estimates. Results among these categories would change if different methods were applied. | |||||
[2] | Amounts are not broken down into separate segments; entire consolidated amount included in each segment. | |||||
[3] | Commission allowances relating to reinsurance ceded are offset against other operating expenses. |
SCHEDULE_IV_REINSURANCE_Detail
SCHEDULE IV - REINSURANCE (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||||||||||
Direct Premiums | $342,656 | $313,842 | $287,982 | ||||||||
Ceded to Other Companies | 1,275 | 2,825 | 2,316 | ||||||||
Assumed from Other Companies | 38,219 | 52,783 | 53,191 | ||||||||
Net Amount | 68,933 | 65,947 | 62,905 | 63,842 | 65,422 | 64,448 | 61,775 | 61,098 | 261,627 | 252,743 | 237,461 |
Retrocessions associated with premiums assumed from other companies | 1,275 | 2,825 | 2,316 | ||||||||
Property and Casualty Insurance [Member] | |||||||||||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||||||||||
Direct Premiums | 342,656 | 313,842 | 287,982 | ||||||||
Ceded to Other Companies | 119,248 | 113,882 | 103,712 | ||||||||
Assumed from Other Companies | 38,219 | 52,783 | 53,191 | ||||||||
Net Amount | $261,627 | $252,743 | $237,461 | ||||||||
% of Amount Assumed to Net (in hundredths) | 14.10% | 19.80% | 21.40% |
SCHEDULE_VI_SUPPLEMENTAL_INFOR1
SCHEDULE VI SUPPLEMENTAL INFORMATION CONCERNING PROPERTY/CASUALTY INSURANCE OPERATIONS (Details) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Supplemental Information for Property, Casualty Insurance Underwriters [Line Items] | ||||||
Deferred Policy Acquisition Costs | $2,263 | $2,319 | $3,091 | |||
Reserves for Unpaid Claims and Claim Adjustment Expenses | 506,102 | 474,470 | 455,454 | |||
Discount if any Deducted in Column C | 3,129 | [1] | 5,885 | [1] | 6,118 | [1] |
Unearned Premiums | 35,019 | 36,693 | 37,273 | |||
Earned Premiums | 261,627 | 252,743 | 237,461 | |||
Net Investment Income | 9,055 | 8,770 | 9,930 | |||
Claims and Claim Adjustment Expenses Incurred Related to Current Year | 169,950 | 156,264 | 147,963 | |||
Claims and Claim Adjustment Expenses Incurred Related to Prior Years | -10,354 | -5,563 | -9,875 | |||
Amortization of Deferred Policy Acquisition Costs | 48,872 | 47,414 | 41,957 | |||
Paid Claims and Claim Adjustment Expenses | 152,101 | 151,849 | 138,945 | |||
Net Premiums Written | $262,171 | $253,684 | $233,678 | |||
Loss reserve discounted present value cash flow pretax interest rate utilized (in hundredths) | 3.50% | 3.50% | 3.50% | |||
[1] | Loss reserves on certain reinsurance assumed and permanent total disability worker's compensation claims have been discounted to present value using pretax interest rates not exceeding 3.5%. |