Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Mar. 01, 2017 | Jun. 30, 2016 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | BALDWIN & LYONS INC | ||
Entity Central Index Key | 9,346 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Information [Line Items] | |||
Entity Public Float | $ 254,086,000 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2016 | ||
Class A (voting) [Member] | |||
Entity Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 2,623,109 | ||
Class B (nonvoting) [Member] | |||
Entity Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 12,481,081 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Investments: | ||
Fixed maturities (Amortized cost: 2016, $494,561; 2015, $442,578) | $ 491,904 | $ 437,184 |
Equity securities (Cost: 2016, $64,902; 2015, $80,221) | 119,945 | 145,498 |
Limited partnerships (Affiliated: 2016, $44,038; 2015, $45,009) | 76,469 | 75,458 |
Short-term and other | 1,500 | 2,220 |
Total Investments | 689,818 | 660,360 |
Cash and cash equivalents | 62,976 | 73,538 |
Accounts receivable--less allowance (2016, $542; 2015, $600) | 64,984 | 66,522 |
Accrued investment income | 3,882 | 3,989 |
Reinsurance recoverable | 255,024 | 215,888 |
Prepaid reinsurance premiums | 2,674 | 3,176 |
Deferred policy acquisition costs | 1,172 | 1,443 |
Property and equipment--less accumulated depreciation (2016, $15,328; 2015, $14,768) | 47,225 | 46,144 |
Other assets | 23,779 | 11,009 |
Current federal income taxes recoverable | 2,603 | 3,702 |
Total Assets | 1,154,137 | 1,085,771 |
Reserves: | ||
Losses and loss expenses | 576,330 | 513,596 |
Unearned premiums | 21,694 | 25,291 |
Total Reserves | 598,024 | 538,887 |
Reinsurance payable | 43,150 | 47,565 |
Short-term borrowings | 20,000 | 20,000 |
Depository liabilities | 9,910 | 16,847 |
Accounts payable and other liabilities | 67,296 | 56,776 |
Deferred federal income taxes | 11,412 | 11,198 |
Total Liabilities | 749,792 | 691,273 |
Shareholders' equity: | ||
Additional paid-in capital | 54,286 | 52,946 |
Unrealized net gains on investments | 34,051 | 38,924 |
Foreign exchange adjustment | (831) | (1,066) |
Retained earnings | 316,195 | 303,053 |
Shareholders' equity | 404,345 | 394,498 |
Total liabilities and shareholders' equity | 1,154,137 | 1,085,771 |
Class A Voting [Member] | ||
Shareholders' equity: | ||
Common stock | 112 | 112 |
Class B Non-voting [Member] | ||
Shareholders' equity: | ||
Common stock | $ 532 | $ 529 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Assets | ||
Fixed maturities, amortized cost | $ 494,561 | $ 442,578 |
Equity securities, cost | 64,902 | 80,221 |
Limited partnerships, affiliated | 44,038 | 45,009 |
Account receivable, allowance | 542 | 600 |
Property and equipment, accumulated depreciation | $ 15,328 | $ 14,768 |
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) | 12,460,900 | 12,402,941 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Revenues: | |||
Net premiums earned | $ 276,011 | $ 263,335 | $ 261,627 |
Net investment income | 14,483 | 12,498 | 9,055 |
Commissions and other income | 5,275 | 5,703 | 6,430 |
Net realized gains on investments, excluding impairment losses | 28,971 | 6,439 | 15,619 |
Total other-than-temporary impairment losses on investments | (5,743) | (7,700) | (689) |
Net realized gains (losses) on investments | 23,228 | (1,261) | 14,930 |
Total revenue | 318,997 | 280,275 | 292,042 |
Expenses: | |||
Losses and loss expenses incurred | 186,481 | 155,750 | 159,596 |
Other operating expenses | 89,462 | 90,573 | 88,048 |
Total expenses | 275,943 | 246,323 | 247,644 |
Income before federal income taxes | 43,054 | 33,952 | 44,398 |
Federal income taxes | 14,109 | 10,669 | 14,681 |
Net income | $ 28,945 | $ 23,283 | $ 29,717 |
Per share data: | |||
Basic and diluted earnings (in dollars per share) | $ 1.92 | $ 1.55 | $ 1.98 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Consolidated Statements of Comprehensive Income [Abstract] | |||
Net income | $ 28,945 | $ 23,283 | $ 29,717 |
Unrealized net gains (losses) on securities: | |||
Unrealized holding net gains (losses) arising during the period | 8,618 | (12,639) | 7,835 |
Less: reclassification adjustment for net gains included in net income | (13,491) | (277) | (5,084) |
Change in unrealized gains (losses) on investments | (4,873) | (12,916) | 2,751 |
Foreign currency translation adjustments | 235 | (1,456) | (1,011) |
Other comprehensive income (loss) | (4,638) | (14,372) | 1,740 |
Comprehensive income | $ 24,307 | $ 8,911 | $ 31,457 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity $ in Thousands | USD ($) |
Shareholders' equity at beginning of year at Dec. 31, 2013 | $ 381,724 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |
Net income | 29,717 |
Other comprehensive income (loss) | 1,740 |
Cash dividends paid to shareholders | (14,947) |
Issuance of common stock | 1,262 |
Shareholders' equity at end of year: at Dec. 31, 2014 | 399,496 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |
Net income | 23,283 |
Other comprehensive income (loss) | (14,372) |
Cash dividends paid to shareholders | (15,003) |
Issuance of common stock | 1,094 |
Shareholders' equity at end of year: at Dec. 31, 2015 | 394,498 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |
Net income | 28,945 |
Other comprehensive income (loss) | (4,638) |
Cash dividends paid to shareholders | (15,803) |
Issuance of common stock | 1,343 |
Shareholders' equity at end of year: at Dec. 31, 2016 | $ 404,345 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Operating activities | |||
Net income | $ 28,945 | $ 23,283 | $ 29,717 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Change in accounts receivable and unearned premium | (2,721) | 22,939 | 3,230 |
Change in accrued investment income | 108 | (307) | (234) |
Change in reinsurance recoverable on paid losses | 692 | 4,458 | (2,785) |
Change in losses and loss expenses reserves net of reinsurance | 23,568 | 6,325 | 7,545 |
Change in other assets, other liabilities and current income taxes | (8,063) | (28,299) | (4,847) |
Amortization of net policy acquisition costs | 18,085 | 21,314 | 25,075 |
Net policy acquisition costs deferred | (17,813) | (20,495) | (25,019) |
Provision for deferred income taxes (benefits) | 2,838 | (1,819) | 1,640 |
Bond amortization | 3,030 | 3,388 | 4,235 |
Loss on sale of property and equipment | 63 | 18 | 474 |
Depreciation | 5,521 | 5,037 | 4,797 |
Net realized (gains) losses on investments | (23,228) | 1,261 | (14,930) |
Compensation expense related to restricted stock | 1,343 | 1,094 | 1,262 |
Net cash provided by operating activities | 32,368 | 38,197 | 30,160 |
Investing activities | |||
Purchases of fixed maturities and equity securities | (400,670) | (342,592) | (288,283) |
Purchases of limited partnership interests | 0 | (409) | (6,886) |
Distributions from limited partnerships | 1,462 | 4,494 | 1,752 |
Proceeds from maturities | 78,691 | 161,706 | 98,714 |
Proceeds from sales of fixed maturities | 199,790 | 117,338 | 167,406 |
Proceeds from sales of equity securities | 88,773 | 53,270 | 19,263 |
Net sales of short-term investments | 11,258 | 746 | 1,925 |
Purchases of property and equipment | (7,725) | (7,662) | (13,451) |
Proceeds from disposals of property and equipment | 1,059 | 277 | 693 |
Net cash used in investing activities | (27,362) | (12,832) | (18,867) |
Financing activities | |||
Dividends paid to shareholders | (15,803) | (15,003) | (14,947) |
Drawings on line of credit | 0 | 0 | 10,000 |
Net cash used in financing activities | (15,803) | (15,003) | (4,947) |
Effect of foreign exchange rates on cash and cash equivalents | 235 | (1,456) | (1,011) |
Increase (decrease) in cash and cash equivalents | (10,562) | 8,906 | 5,335 |
Cash and cash equivalents at beginning of year | 73,538 | 64,632 | 59,297 |
Cash and cash equivalents at end of year | $ 62,976 | $ 73,538 | $ 64,632 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2016 | |
Summary of Significant Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note A - Summary of Significant Accounting Policies Description of Business: Basis of Presentation: Use of Estimates: Cash and Cash Equivalents: Investments: Short-term and other investments are carried at cost, which approximates their fair values. Realized gains and losses on disposals of investments are recorded on the trade date and 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 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 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 a set percentage of original or adjusted cost, and where that decline has existed for a set period of time, the decline is treated as an other-than-temporary impairment. Additionally, for any equity security where the decline has existed for a period of at least one year, 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 of 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: Goodwill and Other Intangible Assets: Reserves for Losses and Loss Expenses: Recognition of Revenue and Costs: Reinsurance 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: Restricted Stock: Earnings Per Share: Comprehensive Income: Fair Value Measurements: Recent Accounting Pronouncements: January 2016 In May 2015, the FASB issued ASU 2015-09, Disclosures about Short-Duration Contracts, and this new guidance will enhance disclosures about an entity's insurance liabilities. This guidance will provide additional information about unpaid claims and claim development, including supplemental disaggregated incurred and paid claim data. Under the guidance, enhanced disclosures on claim frequency and reserving methodologies are required. The guidance became effective for annual periods beginning after December 15, 2015 and for interim periods beginning after December 15, 2016, however early adoption was permitted. The Company has adopted the guidance and the adoption of this guidance did not impact our consolidated financial position, results of operations or cash flows. In May 2015, the FASB issued ASU 2015-07 – Fair Value Measurement – (Topic 820) Disclosures for Investments in Certain Entities that Calculate Net Asset Value per Share (or its equivalent) (a consensus of the Emerging Issues Task Force), which became effective for fiscal years beginning after December 15, 2015. The new pronouncement was issued to ensure that all investments categorized in the fair value hierarchy are classified using a consistent approach. The Company adopted the guidance and the adoption of this guidance did not have a material impact on presentation of data in our consolidated financial statements. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606), as amended by subsequently issued ASUs, to clarify the principles for recognizing revenue. While insurance contracts are not within the scope of this updated guidance, the Company's service and fee income could be subject to this updated guidance. The updated guidance requires an entity to recognize revenue as performance obligations are met, in order to reflect the transfer of promised goods or services to customers in an amount that reflects the consideration the entity is entitled to receive for those goods or services. The following steps are applied in the updated guidance: (1) identify the contract(s) with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when, or as, the entity satisfies a performance obligation. In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, which deferred the effective date of ASU 2014-09 to the quarter ending March 31, 2018. The Company has performed an initial evaluation of the impact this guidance will have on its results of operations, financial position or liquidity. The Company does not expect the guidance to have a material impact on its results of operations, financial position or liquidity. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), or ASU 2016-02. Upon the effective date, ASU 2016-02 will supersede the current lease guidance in ASC Topic 840, Leases. Under the new guidance, lessees will be required to recognize for all leases, with the exception of short-term leases, a lease liability, which is a lessee's obligation to make lease payments arising from a lease, measured on a discounted basis. Concurrently, lessees will be required to recognize a right-of-use asset, which is an asset that represents the lessee's right to use, or control the use of, a specified asset for the lease term. ASU 2016-02 is effective for interim and annual reporting periods beginning after December 15, 2018, with early adoption permitted. The guidance is required to be applied using a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative periods presented in the financial statements. The Company is currently evaluating the effects that adoption of ASU 2016-02 will have on our consolidated financial statements, results of operations and cash flows. The Company does not expect the guidance to have a material impact on its results of operations, financial position or liquidity. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, or ASU 2016-13. This update introduces a current expected credit loss model for measuring expected credit losses for certain types of financial instruments held at the reporting date based on historical experience, current conditions and reasonable supportable forecasts. ASU 2016-13 replaces the current incurred loss model for measuring expected credit losses, requires expected losses on available-for-sale debt securities to be recognized through an allowance for credit losses rather than as reductions in the amortized cost of the securities, and provides for additional disclosure requirements. ASU 2016-13 is effective for interim and annual reporting periods beginning after December 15, 2019, with early adoption permitted for interim and annual reporting periods beginning after December 15, 2018. The Company is currently evaluating the effects the adoption of ASU 2016-13 will have on the consolidated financial statements, results of operations and cash flows. |
Investments
Investments | 12 Months Ended |
Dec. 31, 2016 | |
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) December 31, 2016 Fixed maturities Agency collateralized mortgage obligations $ 6,171 $ 6,000 $ 171 $ - $ 171 Agency mortgage-backed securities 4,770 4,751 57 (38 ) 19 Asset-backed securities 45,183 45,207 458 (482 ) (24 ) Bank loans 10,349 10,222 149 (22 ) 127 Certificates of deposit 3,117 3,126 - (9 ) (9 ) Collateralized mortgage obligations 9,104 9,096 290 (282 ) 8 Corporate securities 142,683 143,356 1,643 (2,316 ) (673 ) Mortgage-backed securities 24,571 23,904 1,132 (465 ) 667 Municipal obligations 129,335 130,204 391 (1,260 ) (869 ) Non-U.S. government obligations 24,681 26,461 230 (2,010 ) (1,780 ) U.S. government obligations 91,940 92,234 74 (368 ) (294 ) Total fixed maturities 491,904 494,561 4,595 (7,252 ) (2,657 ) Equity securities: Consumer 32,576 15,231 17,656 (311 ) 17,345 Energy 12,842 5,641 7,203 (2 ) 7,201 Financial 31,186 22,417 8,998 (229 ) 8,769 Industrial 21,145 6,239 15,098 (192 ) 14,906 Technology 8,858 4,117 4,769 (28 ) 4,741 Mutual fund 6,995 6,930 121 (56 ) 65 Other 6,343 4,327 2,181 (165 ) 2,016 Total equity securities 119,945 64,902 56,026 (983 ) 55,043 Total $ 611,849 $ 559,463 $ 60,621 $ (8,235 ) 52,386 Applicable federal income taxes (18,335 ) Net unrealized gains - net of tax $ 34,051 Net Cost or Gross Gross Unrealized Fair Amortized Unrealized Unrealized Gains Value Cost Gains Losses (Losses) December 31, 2015 Fixed maturities Agency collateralized mortgage obligations $ - $ - $ - $ - $ - Agency mortgage-backed securities 3,157 3,159 38 (40 ) (2 ) Asset-backed securities 44,309 45,941 393 (2,025 ) (1,632 ) Bank loans 5,060 5,333 4 (277 ) (273 ) Certificates of deposit 3,230 3,247 - (17 ) (17 ) Collateralized mortgage obligations 9,257 9,282 116 (141 ) (25 ) Corporate securities 110,511 112,615 2,123 (4,227 ) (2,104 ) Mortgage-backed securities 23,892 24,138 243 (489 ) (246 ) Municipal obligations 110,578 109,932 805 (159 ) 646 Non-U.S. government obligations 23,945 25,483 342 (1,880 ) (1,538 ) U.S. government obligations 103,245 103,448 56 (259 ) (203 ) Total fixed maturities 437,184 442,578 4,120 (9,514 ) (5,394 ) Equity securities: Consumer 46,541 16,849 30,535 (843 ) 29,692 Energy 8,635 6,152 3,323 (840 ) 2,483 Financial 35,686 24,173 12,265 (752 ) 11,513 Industrial 24,841 9,325 15,840 (324 ) 15,516 Technology 11,596 6,153 5,546 (103 ) 5,443 Mutual fund 9,983 11,022 69 (1,108 ) (1,039 ) Other 8,216 6,547 2,829 (1,160 ) 1,669 Total equity securities 145,498 80,221 70,407 (5,130 ) 65,277 Total $ 582,682 $ 522,799 $ 74,527 $ (14,644 ) 59,883 Applicable federal income taxes (20,959 ) Net unrealized gains - net of tax $ 38,924 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: 2016 2015 Number of Securities Fair Value Gross Unrealized Loss Number of Securities Fair Value Gross Unrealized Loss Fixed maturity securities: 12 months or less 397 $ 291,048 $ (4,380 ) 328 $ 205,475 $ (5,070 ) Greater than 12 months 54 32,054 (2,872 ) 168 108,043 (4,444 ) Total fixed maturities 451 323,102 (7,252 ) 496 313,518 (9,514 ) Equity securities: 12 months or less 35 20,698 (983 ) 73 26,517 (5,130 ) Greater than 12 months - - - - - - Total equity securities 35 20,698 (983 ) 73 26,517 (5,130 ) Total 486 $ 343,800 $ (8,235 ) 569 $ 340,035 $ (14,644 ) Unrealized losses in the Company's fixed maturity portfolio are generally the result of interest rate or foreign currency fluctuations. The Company does not intend to sell any fixed maturity securities which are in an unrealized loss position at December 31, 2016 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. Accordingly, the Company does not believe the unrealized losses represent an other-than-temporary impairment as of December 31, 2016. The fair value and the cost or amortized cost of fixed maturity investments at December 31, 2016, organized 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 $ 87,661 17.8 % $ 88,139 17.8 % Excess of one year to five years 273,874 55.7 276,995 56.0 Excess of five years to ten years 35,553 7.2 35,409 7.2 Excess of ten years 5,017 1.0 5,060 1.0 Total maturities 402,105 81.7 405,603 82.0 Asset-backed securities 89,799 18.3 88,958 18.0 $ 491,904 100.0 % $ 494,561 100.0 % Major categories of investment income for the years ended December 31 are summarized as follows: 2016 2015 2014 Interest on fixed maturities $ 13,254 $ 11,663 $ 8,806 Dividends on equity securities 3,598 3,445 2,693 Money market funds, Short-term and other 128 32 37 16,980 15,140 11,536 Investment expenses (2,497 ) (2,642 ) (2,481 ) Net investment income $ 14,483 $ 12,498 $ 9,055 Gains and losses on investments, including equity method earnings from limited partnerships, for the years ended December 31 are summarized below: 2016 2015 2014 Fixed maturities: Gross gains $ 11,628 $ 6,633 $ 6,480 Gross losses (14,020 ) (13,634 ) (4,596 ) Net gains (losses) (2,392 ) (7,001 ) 1,884 Equity securities: Gross gains 28,742 21,070 7,467 Gross losses (5,595 ) (13,643 ) (1,529 ) Net gains 23,147 7,427 5,938 Limited partnerships - net gain (loss) 2,473 (1,687 ) 7,108 Total net gains (losses) $ 23,228 $ (1,261 ) $ 14,930 Shareholders' equity includes approximately $28,110, net of deferred federal income taxes, of undistributed earnings from limited partnerships as of December 31, 2016. 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: 2016 2015 2014 Cumulative charges to income at beginning of year $ 10,513 $ 7,168 $ 6,770 Writedowns based on objective and subjective criteria 5,743 7,700 689 Recovery of prior writedowns upon sale or disposal (12,260 ) (4,355 ) (291 ) Net pre-tax realized gain (loss) 6,517 (3,345 ) (398 ) Cumulative charges to income at end of year $ 3,996 $ 10,513 $ 7,168 Unrealized gain on investments previously written down at end of the year 1 $ 2,108 $ 14,710 $ 17,127 1 There is no primary market and only a limited 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 applicable 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 $1,627 to various limited partnerships as of December 31, 2016. The Company has invested a total of $23,000 in three limited partnerships, with an aggregate estimated value of $44,038 at December 31, 2016, 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 was 6% for New Vernon India Fund, 37% for New Vernon Global Opportunity Fund and 23% for New Vernon Global Opportunity Fund II. These limited partnerships contributed ($971), ($1,978) and $7,088, net of fees, to investment gains (losses) in 2016, 2015 and 2014, respectively. During 2016, 2015 and 2014, the Company has recorded management fees of $777, $749 and $697, respectively, for management of these limited partnerships. The Company utilizes the services of investment firms of which four directors of the Company are employees or partial owners. These investment firms manage equity securities and fixed maturity portfolios with an aggregate market value of approximately $41,706 at December 31, 2016. Total commissions and net fees earned by the investment firm and affiliates on these transactions and for advice and consulting were approximately $207, $235 and $212 during 2016, 2015 and 2014, respectively. The Company's limited partnerships include one investment which primarily invests in public and private equity markets in India. This limited partnership investment's value as of December 31, 2016 and 2015 was $27,153 and $28,270, respectively. At December 31, 2016, the Company's estimated ownership interest in this limited partnership investment was approximately 6%. The Company's share of earnings (losses) from this limited partnership investment was ($1,117), ($1,599) and $7,176 in 2016, 2015 and 2014, respectively. The summarized financial information of this limited partnership investment as of and for the years ended December 31 is as follows: 2016 2015 2014 Total assets $ 448,263 $ 511,118 $ 565,500 Total partners' capital 408,275 470,783 542,700 Net increase (decrease) in partners' capital resulting from operations (15,679 ) (19,603 ) 125,700 The fair value of regulatory deposits with various insurance departments in the United States and Canada totaled $86,169 and $84,198 at December 31, 2016 and 2015, respectively. Short-term investments at December 31, 2016 included $1,500 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 $719, representing one investment, of fixed maturity investments which were originally issued with guarantees by a third party insurance company. The S&P credit rating of such investment, with consideration of the guarantee, is AA. The S&P underlying credit rating of such investment, without consideration of the guarantee, would remain AA. The Company does not have any direct exposure to any guarantor. Approximately $69,112 of fixed maturity investments (9.2% of total invested assets) consists of non-rated bonds and bonds rated as less than investment grade at year end. These investments include a diversified portfolio of over 40 investments and have a $951 aggregate net During 2016 the Company's bridge loan investment program was terminated and the Company had no remaining committed funds related to bridge loan agreements as of December 31, 2016. The Company historically retained possession of these funds which were only loaned in the unlikely event that long-term financing was unavailable to the counter party in the market. |
Loss and Loss Expense Reserves
Loss and Loss Expense Reserves | 12 Months Ended |
Dec. 31, 2016 | |
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. 2016 2015 2014 Reserves at the beginning of the year $ 301,753 $ 295,583 $ 288,088 Provision for losses and loss expenses: Claims occurring during the current year 172,645 165,812 169,950 Claims occurring during prior years 13,836 (10,062 ) (10,354 ) Total incurred 186,481 155,750 159,596 Loss and loss expense payments: Claims occurring during the current year 54,239 56,710 59,826 Claims occurring during prior years 109,228 92,870 92,275 Total paid 163,467 149,580 152,101 Reserves at the end of the year 324,767 301,753 295,583 Reinsurance recoverable on unpaid losses at the end of the year 251,563 211,843 210,519 Reserves, gross of reinsurance recoverable, at the end of the year $ 576,330 $ 513,596 $ 506,102 The table above shows that a deficiency of $13,836 developed during 2016 in the settlement of claims occurring on or before December 31, 2015, compared to reserve savings for the two previous calendar years. The developments for each year are composed of individual claim savings and deficiencies which, in the aggregate have resulted from the settlement of claims at amounts higher or 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: 2016 2015 2014 Property and casualty insurance $ 5,441 $ (10,289 ) $ (5,423 ) Reinsurance 8,395 227 (4,931 ) Totals $ 13,836 $ (10,062 ) $ (10,354 ) Unfavorable loss development in the current year for property and casualty was influenced by severity in the Company's public transportation business. Loss reserves pertaining to the Company's reinsurance business were also strengthened during the year to reflect increased loss development. In addition to these developments, 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, 2016. Loss reserves have been reduced by estimated salvage and subrogation recoverable of approximately $4,151 and $4,674 at December 31, 2016 and 2015, respectively. The following is information about incurred claims development as of December 31, 2016, net of reinsurance, as well as cumulative claim frequency and the total of incurred ‐ ‐ ‐ Workers' Compensation ($ in thousands) As of December 31, 2016 Total of Incurred- but-Not-Reported Liabilities Plus Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance Expected Cumulative Accident For the Years Ended December 31 (2007-2015 is Supplementary Information and Unaudited) Development on Number of Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Reported Claims Reported Claims 2007 $ 9,050 $ 11,930 $ 13,298 $ 12,023 $ 11,239 $ 11,790 $ 12,175 $ 12,637 $ 12,340 $ 12,399 $ 173 2,828 2008 19,833 23,640 24,715 24,721 24,855 25,109 23,916 24,048 24,352 661 3,649 2009 17,270 20,931 21,447 21,261 21,268 20,767 20,641 20,817 1,060 3,784 2010 20,644 20,111 19,400 19,300 18,849 18,344 19,195 1,107 4,222 2011 26,057 26,628 26,958 26,767 25,515 27,293 2,784 4,543 2012 23,965 25,544 24,887 24,485 25,616 3,136 4,477 2013 27,619 30,638 29,913 32,121 5,170 5,255 2014 36,768 36,968 34,009 6,908 5,371 2015 26,277 23,115 6,462 6,219 2016 35,240 20,695 5,520 Total $ 254,157 $ 48,156 Commercial Liability ($ in thousands) As of December 31, 2016 Total of Incurred- but-Not-Reported Liabilities Plus Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance Expected Cumulative Accident For the Years Ended December 31 (2007-2015 is Supplementary Information and Unaudited) Development on Number of Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Reported Claims Reported Claims 2007 $ 38,486 $ 41,803 $ 41,692 $ 41,146 $ 41,216 $ 40,429 $ 40,505 $ 40,516 $ 39,598 $ 39,436 $ 79 1,380 2008 34,693 28,591 27,311 25,511 23,989 24,892 24,902 23,480 23,482 23 948 2009 29,707 30,406 30,203 26,280 27,259 25,872 25,373 25,320 70 899 2010 31,124 22,161 21,899 19,139 20,300 19,764 19,377 40 2,398 2011 46,829 43,832 31,633 36,894 35,805 37,122 89 2,899 2012 49,743 54,269 49,743 51,367 48,708 279 3,124 2013 53,817 39,143 37,701 36,371 671 3,739 2014 49,971 52,254 52,483 2,239 3,271 2015 61,420 70,174 5,800 3,086 2016 61,638 $ 27,480 3,193 Total $ 414,111 $ 36,770 Professional Liability Assumed ($ in thousands) As of December 31, 2016 Total of Incurred- but-Not-Reported Liabilities Plus Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance Expected Cumulative Accident For the Years Ended December 31 (2007-2015 is Supplementary Information and Unaudited) Development on Number of Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Reported Claims Reported Claims 2007 2008 2009 2010 $ 2,196 $ 4,277 $ 7,827 $ 7,946 $ 9,733 $ 10,740 $ 11,689 $ 270 N/A 2011 10,492 8,314 9,017 9,859 10,779 12,735 628 N/A 2012 10,041 9,276 5,569 10,157 14,605 2,653 N/A 2013 14,370 13,034 11,618 17,694 3,449 N/A 2014 12,675 8,825 7,259 3,178 N/A 2015 11,638 7,859 6,956 N/A 2016 6,368 $ 6,368 N/A Total $ 78,210 $ 23,502 The following is information about paid claims development as of December 31, 2016, net of reinsurance. Workers' Compensation ($ in thousands) Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net of Reinsurance Accident For the Years Ended December 31 (2007-2015 is Supplementary Information and Unaudited) Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2007 $ 1,525 $ 6,072 $ 8,064 $ 7,805 $ 8,352 $ 9,226 $ 9,571 $ 9,974 $ 10,138 10,401 2008 6,046 13,919 17,320 18,943 20,055 20,839 21,306 21,883 22,199 2009 4,186 10,073 13,343 15,576 16,592 17,448 18,028 18,514 2010 3,974 9,134 11,963 13,845 14,966 15,835 16,590 2011 4,916 11,912 15,973 18,884 20,617 21,622 2012 4,597 11,004 14,834 17,415 18,946 2013 4,880 12,792 18,065 21,655 2014 5,328 13,665 19,075 2015 2,918 10,128 2016 5,784 Total $ 164,914 Outstanding liabilities prior to 2007 net of reinsurance 12,640 Liabilities for claims and claims adjustment expenses, net of reinsurance $ 101,883 Commercial Liability ($ in thousands) Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net of Reinsurance Accident For the Years Ended December 31 (2007-2015 is Supplementary Information and Unaudited) Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2007 $ 5,493 $ 17,302 $ 32,571 $ 36,150 $ 38,621 $ 39,006 $ 39,069 $ 39,160 $ 39,216 $ 39,193 2008 2,612 8,942 15,733 21,220 21,396 23,169 23,354 23,444 23,500 2009 928 17,880 19,718 23,521 24,866 25,066 25,114 25,125 2010 1,649 7,166 11,635 16,052 18,627 18,517 18,866 2011 1,809 11,350 23,615 30,795 33,255 34,009 2012 3,086 23,252 32,942 45,303 47,601 2013 5,167 15,772 25,270 34,481 2014 4,023 9,046 28,393 2015 10,923 27,582 2016 6,843 Total $ 285,593 Outstanding liabilities prior to 2007 net of reinsurance 4,621 Liabilities for claims and claims adjustment expenses, net of reinsurance $ 133,139 Professional Liability Assumed ($ in thousands) Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net of Reinsurance Accident For the Years Ended December 31 (2007-2015 is Supplementary Information and Unaudited) Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2007 2008 2009 2010 $ 41 $ 729 $ 3,505 $ 5,844 $ 7,758 $ 9,904 $ 11,132 2011 50 637 2,061 4,983 8,104 10,404 2012 103 992 2,388 5,077 8,355 2013 123 1,135 5,088 10,988 2014 723 761 2,241 2015 10 390 2016 - Total $ 43,510 Outstanding liabilities prior to 2007 net of reinsurance - Liabilities for claims and claims adjustment expenses, net of reinsurance $ 34,700 The reconciliation of the net incurred and paid claims development tables to the liability for claims and claim adjustment expenses in the consolidated statement of financial position is as follows. Net outstanding liabilities Commercial Liability $ 133,139 Workers' Compensation 101,883 Professional Liability Assumed 34,700 Other short-duration insurance lines 38,556 Liabilities for unpaid claims and claim adjustment expenses, net of reinsurance 308,278 Reinsurance recoverable on unpaid claims Commercial Liability 85,549 Workers' Compensation 153,847 Professional Liability Assumed - Other short-duration insurance lines 12,167 Reinsurance recoverable on unpaid losses at the end of the year 251,563 Unallocated claims adjustment expenses 16,489 Total gross liability for unpaid claims and claims adjustment expense $ 576,330 The following is supplementary information about average historical claims duration as of December 31, 2016. Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (Supplementary Information and Unaudited) Years 1 2 3 4 5 6 7 8 9 10 Commercial Liability 9.7 % 31.3 % 26.7 % 20.0 % 6.2 % 2.2 % 0.7 % 0.2 % 0.2 % 0.1 % Workers' Compensation 17.4 % 28.3 % 15.3 % 8.1 % 5.3 % 4.5 % 2.9 % 2.7 % 1.3 % 2.1 % Professional Liability Assumed 1.7 % 4.6 % 17.4 % 23.7 % 21.1 % 18.2 % 10.5 % Reserve methodologies for incurred but not reported losses The Company uses both standard actuarial techniques common to most insurance companies as well as proprietary techniques developed by the Company in consideration of its specialty business products. For its short-tail lines of The Company also uses the loss development factor approach for its long-tail lines of business, including workers' compensation. A minimum of 15 accident years is included in the loss development triangles used to calculate link ratios and the selected loss development factors used to determine the reserves for incurred but not reported losses. Significant emphasis is placed on the use of tail factors for the Company's long-tail lines of business. For the Company's fleet transportation risks, which are covered by regularly changing reinsurance agreements and which contain wide-ranging self-insured retentions ("SIR"), traditional actuarial methods are supplemented by other methods, as described below, in consideration of the Company's exposures to loss. In situations where the Company's reinsurance structure, the insured's SIR selections, policy volume, and other factors are changing, current accident period loss exposures may not be homogenous enough with historical loss data to allow for reliable projection of future developed losses. Therefore, the Company supplements the above-described actuarial methods with loss ratio reserving techniques developed from the Company's extensive, proprietary databases to arrive at the reserve for losses incurred but not reported for the calendar/accident period under review. As losses for a given calendar/accident period develop with the passage of time, management evaluates such development on a monthly and quarterly basis and adjusts reserve factors, as necessary, to reflect current judgment with regard to the anticipated ultimate incurred losses. This process continues until all losses are settled for each period subject to this method. Claim count methodology The Company uses a claim event and coverage combination to estimate frequency. For example, a single claim event involving loss for physical damage of a vehicle and personal injury to a claimant would be considered two claims for purposes of the calculation of frequency. A single claim event causing personal injury to two claimants would be considered a single claim under the methodology. |
Reinsurance
Reinsurance | 12 Months Ended |
Dec. 31, 2016 | |
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 June 30, 2015, under retrocessions from other reinsurers for catastrophic property coverages. Accordingly, for periods prior to that date, the occurrence of catastrophic events could have had 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 premiums written and earned for the most recent three years: Premiums Written Premiums Earned 2016 2015 2014 2016 2015 2014 Direct $ 395,625 $ 366,668 $ 343,200 $ 394,679 $ 370,499 $ 342,656 Ceded on direct (131,166 ) (128,338 ) (118,942 ) (129,926 ) (128,135 ) (117,973 ) Net direct 264,459 238,330 224,258 264,753 242,364 224,683 Assumed 7,379 16,885 39,188 11,344 21,533 38,219 Ceded on assumed (86 ) (562 ) (1,275 ) (86 ) (562 ) (1,275 ) Net assumed 7,293 16,323 37,913 11,258 20,971 36,944 Net $ 271,752 $ 254,653 $ 262,171 $ 276,011 $ 263,335 $ 261,627 Net losses and loss expenses incurred for 2016, 2015 and 2014 have been reduced by ceded reinsurance recoveries of approximately $108,656, $75,581 and $105,891, 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 2016, 2015 and 2014 include approximately $14,746, $13,492 and $20,288, respectively, relating to reinsurance assumed from non-affiliated insurance or reinsurance companies. Components of reinsurance recoverable at December 31 are as follows: 2016 2015 Case unpaid losses, net of valuation allowance $ 126,244 $ 120,320 Incurred but not reported unpaid losses and loss expenses 123,819 90,578 Paid losses and loss expenses 1,760 2,452 Unearned premiums 3,201 2,538 $ 255,024 $ 215,888 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2016 | |
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: 2016 2015 Deferred tax liabilities: Unrealized gain on fixed income and equity security investments $ 18,335 $ 20,959 Deferred acquisition costs 874 877 Loss and loss expense reserves 1,198 2,305 Limited partnership investments 2,274 1,771 Accelerated depreciation 1,037 897 Other 1,251 1,024 Total deferred tax liabilities 24,969 27,833 Deferred tax assets: Loss and loss expense reserves 9,467 9,349 Unearned premiums discount 1,295 1,593 Other-than-temporary investment declines 858 3,437 Deferred compensation 1,097 1,699 Deferred ceding commission 464 371 Other 376 186 Total deferred tax assets 13,557 16,635 Net deferred tax liabilities $ (11,412 ) $ (11,198 ) 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: 2016 2015 2014 Statutory federal income rate applied to pretax income $ 15,069 $ 11,883 $ 15,539 Tax effect of (deduction): Tax-exempt investment income (938 ) (919 ) (924 ) Other (22 ) (295 ) 66 Federal income tax expense $ 14,109 $ 10,669 $ 14,681 Federal income tax expense consists of the following: 2016 2015 2014 Taxes (benefit) on pre-tax income: Current $ 11,271 $ 12,488 $ 13,041 Deferred 2,838 (1,819 ) 1,640 $ 14,109 $ 10,669 $ 14,681 2016 2015 2014 Limited partnerships $ 503 $ (2,865 ) $ 2,025 Discounts of loss and loss expense reserves (114 ) 1,526 113 Reserves - salvage and subrogation and other (1,110 ) 29 (280 ) Unearned premium discount 298 608 (38 ) Deferred compensation 595 (127 ) (685 ) Other-than-temporary investment declines 2,320 (1,416 ) (19 ) Deferred acquisitions costs and ceding commission (95 ) (287 ) (20 ) Other 441 713 544 Provision for deferred federal income tax $ 2,838 $ (1,819 ) $ 1,640 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, 2016 or 2015. As of December 31, 2016, calendar years 2015 and 2014 remain subject to examination by the IRS. The Company has no uncertain tax positions as of December 31, 2016 or 2015. 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. There were no amounts accrued for the payment of interest at December 31, 2016, 2015 and 2014. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2016 | |
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, 2014 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 Restricted stock grants - - 46,552 2 1,092 Balance at December 31, 2015 2,623,109 112 12,402,941 529 52,946 Restricted stock grants - - 57,959 3 1,340 Balance at December 31, 2016 2,623,109 $ 112 12,460,900 $ 532 $ 54,286 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 $15,803, or $1.04 per share, in dividends during 2016, and $15,003 and $14,947, or $1.00 per share, for the years 2015 and 2014, respectively. |
Other Operating Expenses
Other Operating Expenses | 12 Months Ended |
Dec. 31, 2016 | |
Other Operating Expenses [Abstract] | |
Other Operating Expenses | Note G - Other Operating Expenses Details of other operating expenses for the years ended December 31: 2016 2015 2014 Amortization of gross deferred policy acquisition costs $ 51,597 $ 50,270 $ 48,872 Other underwriting expenses 41,692 42,638 37,830 Expense allowances from reinsurers (33,512 ) (28,956 ) (23,797 ) Total underwriting expenses 59,777 63,952 62,905 Operating expenses of non-insurance companies 29,685 26,621 25,143 Total other operating expenses $ 89,462 $ 90,573 $ 88,048 During 2015, the Company entered into a consulting contract with an insurance brokerage firm of which a director of the Company is CEO and a Managing Director. The consulting contract provides for an annual fee of $300. For the years ended December 31, 2016 and 2015, the Company incurred expenses of $300 and $0, respectively, related to this agreement. The Company also has a brokerage agreement with this entity. The Company incurred commission expense in connection with insurance policies written in 2016 under this brokerage agreement. Total commission expense for 2016 and 2015 was $419 and $0, respectively. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2016 | |
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 are based on a set percentage and the contributions to the Plan for 2016, 2015 and 2014 were $2,449, $2,090 and $1,798, respectively. |
Stock Purchase and Option Plans
Stock Purchase and Option Plans | 12 Months Ended |
Dec. 31, 2016 | |
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 (the "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 from two outside directors. A limited number of shares have ever been repurchased under the 1981 Plan. At December 31, 2016, there were 60,938 shares (Class A) and 240,938 shares (Class B) outstanding which remain eligible for repurchase by the Company. 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, $480 and $440 for the annual periods ended 2016, 2015 and 2014, respectively. The table below provides detail of the stock issuances for 2016, 2015 and 2014: Effective Number of Shares Vesting Value Date Issued Date Period Per Share 5/8/2014 17,237 5/8/2015 7/1/2014 - 6/30/2015 $ 25.53 5/12/2015 21,252 5/12/2016 7/1/2015 - 6/30/2016 $ 22.59 5/10/2016 17,677 5/10/2017 7/1/2016 - 6/30/2017 $ 24.89 Compensation expense related to the above stock grants is recognized over the period in which the directors render the services. Director compensation cost associated with restricted stock grants of $460, $460 and $440 was charged against income for the restricted stock granted in 2016, 2015 and 2014, respectively. Effective February 5, 2016, the Company issued 47,333 shares of Class B restricted stock to certain of the Company's executives under the company's Restricted Stock Compensation Plan. The restricted shares will be paid solely in the Company's Class B common stock. The restricted shares represent a portion of the calendar year 2015 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 Topic 715, Compensation—Retirement Benefits. The restricted shares were valued based on the closing price of the Company's Class B common stock on the day the award was granted. Each share was valued at $23.30 per share, representing a total value of $1,103. 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 8, 2017, the Company issued 20,181 shares of Class B restricted stock to certain of the Company's executives under the company's Restricted Stock Compensation Plan. The restricted shares will be paid solely in the Company's Class B common stock. The restricted shares represent a portion of the calendar year 2016 compensation to certain executives under the terms of the Company's Executive Incentive Bonus Plan. The restricted shares will vest over a three-year period from the date of grant. The restricted shares were valued based on the closing price of the Company's Class B common stock on the day the award was granted. Each share was valued at $23.80 per share representing a total value of $480. 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, 2016 | |
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 as well as to independent contractors who contract with fleet transportation companies. In addition, the Company provides workers' compensation coverage to small businesses. In 2016, the Company discontinued its professional liability line of products. Prior to that, the Company marketed a variety of professional liability products on a selective basis through wholesale and retail agents on both an admitted and surplus lines basis throughout the United States, specializing in smaller insureds. In late 2015, the Company discontinued marketing private passenger automobile liability and physical damage coverages and all business for this product line had expired by the end of 2016. In 2016, the reinsurance segment discontinued accepting professional liability cessions from other insurance companies from current in-force business. From 1992 until July 1, 2014, the reinsurance segment accepted property cessions from other insurance companies and retrocessions from reinsurance companies, principally reinsuring against catastrophes. Final exposure to property catastrophe losses expired on June 30, 2015. 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 excludes revenue and expense from the Company's agency operations. 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: 2016 2015 2014 Gross Premiums Written: Property and casualty insurance $ 395,625 $ 366,668 $ 343,200 Reinsurance 7,379 16,885 39,188 Totals $ 403,004 $ 383,553 $ 382,388 Net Premiums Earned: Property and casualty insurance $ 264,753 $ 242,364 $ 224,683 Reinsurance 11,258 20,971 36,944 Totals $ 276,011 $ 263,335 $ 261,627 Segment Underwriting Gain (Loss): Property and casualty insurance $ 12,424 $ 24,279 $ 16,221 Reinsurance (8,199 ) (1,504 ) 2,147 Totals $ 4,225 $ 22,775 $ 18,368 The following table reconciles reportable segment underwriting gain (loss) to income before federal income taxes included in the Company's consolidated statements of income for the years ended December 31, 2016, 2015 and 2014: 2016 2015 2014 Profit: Segment underwriting gain $ 4,225 $ 22,775 $ 18,368 Net investment income 14,483 12,498 9,055 Net realized gains (losses) on investments 23,228 (1,261 ) 14,930 Corporate and other income (expenses) 1,118 (60 ) 2,045 Income before federal income taxes $ 43,054 $ 33,952 $ 44,398 One customer of the property and casualty insurance segment, FedEx Ground Systems, Inc. An additional $202,205, $209,434 and $197,767 for 2016, 2015 and 2014, respectively, is placed with the Company by a non-affiliated broker on behalf of contracted service providers of FedEx |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2016 | |
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: 2016 2015 2014 Average shares outstanding for basic earnings per share 15,071,900 15,010,454 14,963,959 Dilutive effect of share equivalents 12,108 11,308 11,935 Average shares outstanding for diluted earnings per share 15,084,008 15,021,762 14,975,894 |
Concentrations of Credit Risk
Concentrations of Credit Risk | 12 Months Ended |
Dec. 31, 2016 | |
Concentrations of Credit Risk [Abstract] | |
Concentrations of Credit Risk | Note L - Concentrations of Credit Risk The Company writes policies of excess insurance attaching above 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, 2016, the Company held collateral in the aggregate amount of $257,095. 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 IBNR 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 FedEx to be as much as 37% (after-tax) of shareholders' equity at December 31, 2016. The Company's balance sheet includes paid and estimated unpaid amounts recoverable from reinsurers under various agreements. These recoverables are only partially collateralized. The two largest amounts due from individual reinsurers, net of collateral and offsets, were $40,335 and $27,131 at December 31, 2016. Investments in limited partnerships include an aggregate of $44,038 invested in three limited partnerships, New Vernon India Fund, New Vernon Global Opportunity Fund and New Vernon Global Opportunity Fund II, which are managed by organizations in which four directors of the Company are executive officers, directors or owners. |
Acquisition and related Goodwil
Acquisition and related Goodwill and Intangibles | 12 Months Ended |
Dec. 31, 2016 | |
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 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 of $179. Accumulated amortization of intangible assets was $179 as of both December 31, 2016 and 2015. |
Fair Value
Fair Value | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value [Abstract] | |
Fair Value | Note N – 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, 2016: Description Total Level 1 Level 2 Level 3 Fixed maturities: Agency collateralized mortgage obligations $ 6,171 $ - $ 6,171 $ - Agency mortgage-backed securities 4,770 - 4,770 - Asset-backed securities 45,183 - 37,919 7,264 Bank loans 10,349 - - 10,349 Certificates of deposit 3,117 3,117 - - Collateralized mortgage obligations 9,104 - 6,409 2,695 Corporate securities 137,932 - 135,794 2,138 Options embedded in convertible securities 4,751 - 4,751 - Mortgage-backed securities 24,571 - 22,206 2,365 Municipal obligations 129,335 - 129,190 145 Non-U.S. government obligations 24,681 - 24,419 262 U.S. government obligations 91,940 - 91,940 - Total fixed maturities 491,904 3,117 463,569 25,218 Equity securities: Consumer 32,576 32,576 - - Energy 12,842 12,842 - - Financial 31,186 30,943 243 - Industrial 21,145 20,262 883 - Technology 8,858 8,858 - - Mutual fund 6,995 - 6,995 - Other 6,343 6,343 - - Total equity securities 119,945 111,824 8,121 - Short term 1,500 1,500 - - Cash equivalents 59,683 - 59,683 - Total $ 673,032 $ 116,441 $ 531,373 $ 25,218 As of December 31, 2015: Description Total Level 1 Level 2 Level 3 Fixed maturities: Agency collateralized mortgage obligations $ - $ - $ - $ - Agency mortgage-backed securities 3,157 - 3,157 - Asset-backed securities 44,309 - 37,235 7,074 Bank loans 5,060 - - 5,060 Certificates of deposit 3,230 - 3,230 - Collateralized mortgage obligations 9,257 - 9,257 - Corporate securities 108,116 - 105,108 3,008 Options embedded in convertible securities 2,395 - 2,395 - Mortgage-backed securities 23,892 - 22,523 1,369 Municipal obligations 110,578 - 110,578 - Non-U.S. government obligations 23,945 - 23,663 282 U.S. government obligations 103,245 - 103,245 - Total fixed maturities 437,184 - 420,391 16,793 Equity securities: Consumer 46,541 46,541 - - Energy 8,635 8,635 - - Financial 35,686 34,431 1,255 - Industrial 24,841 24,274 567 - Technology 11,596 11,596 - - Mutual fund 9,983 - 9,983 - Other 8,216 8,216 - - Total equity securities 145,498 133,693 11,805 - Short term 2,220 2,220 - - Cash equivalents 69,517 - 69,517 - Total $ 654,419 $ 135,913 $ 501,713 $ 16,793 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 asset and mortgage-backed securities, bank loans, collateralized mortgage obligations, corporate securities and a limited amount of municipal and foreign government obligations. The assets are valued using various unobservable inputs including extrapolated data, proprietary models and indicative quotes. Transfers into Level 3 during 2016 and 2015 relate to securities previously classified as Level 2. 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: 2016 2015 Beginning of period balance $ 16,793 $ 12,208 Total gains or losses (realized) included in income 1,846 (104 ) Purchases 5,540 2,284 Settlements (8,791 ) (8,068 ) Transfers into Level 3 10,202 11,586 Transfers out of Level 3 (372 ) (1,113 ) End of period balance $ 25,218 $ 16,793 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. There were no significant transfers of assets between Level 1 and Level 2 during 2016. 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 of 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, 2016 and 2015 is as follows: 2016: Carrying Fair Value Value Level 1 Level 2 Level 3 Total Assets: Limited partnerships $ 76,469 $ - $ - $ 76,469 $ 76,469 Liabilities: Short-term borrowings 20,000 - 20,000 - 20,000 2015: Assets: Limited partnerships $ 75,458 $ - $ - $ 75,458 $ 75,458 Liabilities: Short-term borrowings 20,000 - 20,000 - 20,000 |
Quarterly Results of Operations
Quarterly Results of Operations (Unaudited) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Results of Operations (Unaudited) [Abstract] | |
Quarterly Results of Operations (Unaudited) | Note O - Quarterly Results of Operations (Unaudited) Quarterly results of operations are as follows: Results by Quarter 2016 2015 1st 2nd 3rd 4th 1st 2nd 3rd 4th Net premiums earned $ 66,909 $ 68,726 $ 71,235 $ 69,141 $ 66,446 $ 65,449 $ 65,445 $ 65,995 Net investment income 3,440 3,549 3,513 3,982 2,815 2,898 3,014 3,771 Net gains (losses) on investments 9,012 280 7,732 6,204 3,743 (1,166 ) (2,086 ) (1,753 ) Losses and loss expenses incurred 38,623 42,666 56,827 48,366 41,646 37,031 35,212 41,860 Net income 14,112 5,969 4,001 4,864 6,243 5,718 7,780 3,541 Net income per share - diluted $ .94 $ .40 $ .27 $ .32 $ .42 $ .38 $ .52 $ .24 |
Statutory
Statutory | 12 Months Ended |
Dec. 31, 2016 | |
Statutory [Abstract] | |
Statutory | Note P - Statutory Net income of the Insurance Subsidiaries, all of which are wholly-owned, as determined in accordance with statutory accounting practices, was $31,647, $25,627 and $27,143 for 2016, 2015 and 2014, respectively. Consolidated statutory capital and surplus for these subsidiaries was $399,314 and $390,823 at December 31, 2016 and 2015, respectively, of which $64,260 may be transferred by dividend or loan to the parent company during calendar year 2017 with proper notification to, but without approval from, regulatory authorities. 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, 2016, the minimum statutory capital and surplus requirements of the Insurance Subsidiaries was $85,842. Actual consolidated statutory capital and surplus at December 31, 2016 exceeded this requirement by $313,473 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2016 | |
Leases [Abstract] | |
Leases | Note Q - Leases The Company leases certain computer and related equipment using noncancelable operating leases. Lease expense for 2016, 2015 and 2014 was $157, $175 and $330, respectively. At December 31, 2016, future lease payments for operating leases with initial or remaining noncancelable terms of one year or more consisted of the following: 2017 $ 349 2018 207 2019 207 2020 and thereafter 10 Total minimum payments required $ 773 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 12 Months Ended |
Dec. 31, 2016 | |
Accumulated Other Comprehensive Income [Abstract] | |
Accumulated Other Comprehensive Income | Note R – Accumulated Other Comprehensive Income A reconciliation of the components of accumulated other comprehensive income at December 31 is as follows: 2016 2015 Investments: Total unrealized gain before federal income taxes $ 52,386 $ 59,883 Deferred tax liability (18,335 ) (20,959 ) Net unrealized gains on investments 34,051 38,924 Foreign exchange adjustment: Total unrealized losses (1,278 ) (1,640 ) Deferred tax benefit 447 574 Net unrealized losses on foreign exchange adjustment (831 ) (1,066 ) Accumulated other comprehensive income $ 33,220 $ 37,858 Details of changes in net unrealized gains on investments for the years ended December 31 are as follows: 2016 2015 2014 Investments: Pre-tax holding gains (losses) on debt and equity securities arising during period $ 13,259 $ (19,445 ) $ 12,055 Less: applicable federal income taxes 4,641 (6,806 ) 4,220 8,618 (12,639 ) 7,835 Pre-tax gains on debt and equity securities included in net income during period 20,755 426 7,823 Less: applicable federal income taxes 7,264 149 2,739 13,491 277 5,084 Change in unrealized gains on investments $ (4,873 ) $ (12,916 ) $ 2,751 Reconciliation of accumulated other comprehensive income and retained earnings for the years ended December 31 are as follows: 2016 2015 2014 Beginning accumulated other comprehensive income $ 37,858 $ 52,230 $ 50,490 Change in foreign exchange adjustment 235 (1,456 ) (1,011 ) Change in unrealized net gains on investments (4,873 ) (12,916 ) 2,751 Ending accumulated other comprehensive income $ 33,220 $ 37,858 $ 52,230 2016 2015 2014 Beginning retained earnings $ 303,053 $ 294,773 $ 280,003 Net income 28,945 23,283 29,717 Dividends (15,803 ) (15,003 ) (14,947 ) Ending retained earnings $ 316,195 $ 303,053 $ 294,773 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2016 | |
Debt [Abstract] | |
Debt | Note S – 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 as of both December 31, 2016 and 2015. At December 31, 2016, the effective interest rate was 1.86%. The Company has $20,000 remaining unused under the line of credit at December 31, 2016. The current outstanding borrowings were used for general corporate purposes. |
SCHEDULE I -SUMMARY OF INVESTME
SCHEDULE I -SUMMARY OF INVESTMENTS-OTHER THAN INVESTMENTS IN RELATED PARTIES | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016 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: Agency collateralized mortgage obligations 6,000 6,171 6,171 Agency mortgage-backed securities 4,751 4,770 4,770 Asset-backed securities 45,207 45,183 45,183 Bank loans 10,222 10,349 10,349 Certificates of deposit 3,126 3,117 3,117 Collateralized mortgage obligations 9,096 9,104 9,104 Corporate securities 143,356 142,683 142,683 Mortgage-backed securities 23,904 24,571 24,571 Municipal obligations 130,204 129,335 129,335 Non-U.S. government obligations 26,461 24,681 24,681 U.S. government obligations 92,234 91,940 91,940 Total fixed maturities 494,561 491,904 491,904 Equity Securities: Common Stocks: Consumer 15,231 32,576 32,576 Energy 5,641 12,842 12,842 Financial 22,417 31,186 31,186 Industrial 6,239 21,145 21,145 Technology 4,117 8,858 8,858 Mutual fund 6,930 6,995 6,995 Other 4,327 6,343 6,343 Total equity securities 64,902 119,945 119,945 Limited partnerships 32,431 32,431 32,431 Short-term: Certificates of deposit 1,500 1,500 1,500 Total short-term and other 1,500 1,500 1,500 Total investments $ 593,394 $ 645,780 $ 645,780 (A) Investments presented above do not include $49,145 of money market funds classified with cash and cash equivalents in the balance sheet. |
SCHEDULE II CONDENSED FINANCIAL
SCHEDULE II CONDENSED FINANCIAL INFORMATION OF REGISTRANT | 12 Months Ended |
Dec. 31, 2016 | |
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 December 31 2016 2015 Assets Investment in subsidiaries $ 409,892 $ 405,192 Due from affiliates 3,381 2,945 Investments other than subsidiaries: Fixed maturities 10,166 12,181 Limited partnerships 205 208 10,371 12,389 Cash and cash equivalents 14,995 17,934 Accounts receivable 7,602 6,418 Other assets 25,763 21,067 Total assets $ 472,004 $ 465,945 Liabilities and shareholders' equity Liabilities: Premiums payable $ 11,973 $ 21,672 Deposits from insureds 30,087 23,484 Short-term borrownings 20,000 20,000 Other liabilities 5,599 6,291 67,659 71,447 Shareholders' equity: Common stock: Class A 112 112 Class B 532 529 Additional paid-in capital 54,286 52,946 Unrealized net gains on investments 34,051 38,924 Foreign exchange adjustment (831 ) (1,066 ) Retained earnings 316,195 303,053 404,345 394,498 Total liabilities and shareholders' equity $ 472,004 $ 465,945 SCHEDULE II CONDENSED FINANCIAL INFORMATION OF REGISTRANT Form 10-K Baldwin & Lyons, Inc. (Dollars in thousands) Condensed Statements of Operations Year Ended December 31 2016 2015 2014 Revenue: Commissions and service fees $ 27,736 $ 23,523 $ 22,153 Cash dividends from subsidiaries 20,000 20,000 15,000 Net investment income 134 120 102 Net realized losses on investments (3 ) (22 ) (27 ) Other (24 ) (17 ) 126 47,843 43,604 37,354 Expenses: Salary and related items 17,462 17,616 15,543 Other 10,808 7,297 7,978 28,270 24,913 23,521 Income before federal income taxes and equity in undistributed income of subsidiaries 19,573 18,691 13,833 Federal income tax benefit (69 ) (350 ) (294 ) 19,642 19,041 14,127 Equity in undistributed income of subsidiaries 9,303 4,242 15,590 Net income $ 28,945 $ 23,283 $ 29,717 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 2016 2015 2014 Net cash provided by operating activities $ 15,484 $ 21,841 $ 19,719 Investing activities: Purchases of long-term investments (4,000 ) (4,792 ) (6,398 ) Sales or maturities of long-term investments 3,493 4,194 5,253 Net sales of short-term investments 2,165 - - Distributions from limited partnerships - - 13 Net purchases of property and equipment (4,278 ) (4,921 ) (6,873 ) Net cash used in investing activities (2,620 ) (5,519 ) (8,005 ) Financing activities: Dividends paid to shareholders (15,803 ) (15,003 ) (14,947 ) Drawings on line of credit - - 10,000 Net cash used in financing activities (15,803 ) (15,003 ) (4,947 ) Increase (decrease) in cash and cash equivalents (2,939 ) 1,319 6,767 Cash and cash equivalents at beginning of year 17,934 16,615 9,848 Cash and cash equivalents at end of year $ 14,995 $ 17,934 $ 16,615 Note to Condensed Financial Statements - Basis of Presentation The 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 satements should be read in conjunction with the Company's consolidated financial statements. |
SCHEDULE III SUPPLEMENTARY INSU
SCHEDULE III SUPPLEMENTARY INSURANCE INFORMATION | 12 Months Ended |
Dec. 31, 2016 | |
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 Adjustment Unearned Benefits Premium Investment Settlement Acquisition Operating Premiums Segment Costs Expenses Premiums Payable Earned Income Expenses Costs Expenses Written (C) (A) (B) (C) Property/Casualty Insurance 2016 $ 1,172 $ 531,008 $ 18,947 --- $ 264,753 $ 14,483 $ 171,735 $ 51,597 $ 8,180 $ 264,459 2015 1,443 464,305 18,579 --- 242,364 12,498 142,258 50,270 13,682 238,330 2014 2,263 449,133 23,659 --- 224,683 9,055 139,308 48,872 14,033 224,258 Reinsurance 2016 --- $ 45,322 $ 2,747 --- $ 11,258 $ 14,483 $ 14,746 --- $ 8,180 $ 7,293 2015 --- 49,291 6,712 --- 20,971 12,498 13,492 --- 13,682 16,323 2014 --- 56,969 11,360 --- 36,944 9,055 20,288 --- 14,033 37,913 (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 wold 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, 2016 | |
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: 2016 $ 394,679 $ 130,012 $ 11,344 $ 276,011 4.1 2015 370,499 128,697 21,533 263,335 8.0 2014 342,656 119,248 38,219 261,627 14.1 Note: Included in Ceded to Other Companies is $86, $562 and $1,275 for 2016, 2015 and 2014, 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 INFORM
SCHEDULE VI SUPPLEMENTAL INFORMATION CONCERNING PROPERTY/CASUALTY INSURANCE OPERATIONS | 12 Months Ended |
Dec. 31, 2016 | |
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 for Unpaid Discount, Adjustment Expenses Amortization of Deferred Claims if any Incurred Related to Deferred Paid Claims AFFILIATION Policy and Claim Deducted Net (1) (2) Policy and Claim Net WITH Acquisition Adjustment in Unearned Earned Investment Current Prior Acquisition Adjustment Premiums REGISTRANT Costs Expenses Column C Premiums Premiums Income Year Years Costs Expenses Written Consolidated Property/Casualty Subsidiaries: (A) 2016 $1,172 $576,330 $- $21,694 $276,011 $14,483 $172,645 $13,836 $51,597 $163,467 $271,752 2015 1,443 513,596 2,110 25,291 263,335 12,498 165,812 (10,062) 50,270 149,580 254,653 2014 2,263 506,102 3,129 35,019 261,627 9,055 169,950 (10,354) 48,872 152,101 262,171 (A) Loss reserves on certain reinsurance assumed and permanent total disability workers' compensation claims have been discounted to present value using pretax interest rates not exceeding 3.5% through 2015. |
Summary of Significant Accoun32
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Summary of Significant Accounting Policies [Abstract] | |
Description of Business | Description of Business: |
Basis of Presentation | Basis of Presentation: |
Use of Estimate | Use of Estimates: |
Cash and Cash Equivalents | Cash and Cash Equivalents: |
Investments | Investments: Short-term and other investments are carried at cost, which approximates their fair values. Realized gains and losses on disposals of investments are recorded on the trade date and 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 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 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 a set percentage of original or adjusted cost, and where that decline has existed for a set period of time, the decline is treated as an other-than-temporary impairment. Additionally, for any equity security where the decline has existed for a period of at least one year, 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 of 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: |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets: |
Reserves for Losses and Loss Expenses | Reserves for Losses and Loss Expenses: |
Recognition of Revenue and Costs | Recognition of Revenue and Costs: |
Reinsurance | Reinsurance 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: |
Restricted Stock | Restricted Stock: |
Earnings Per Share | Earnings Per Share: |
Comprehensive Income | Comprehensive Income: |
Fair Value Measurements | Fair Value Measurements: |
Recent Accounting Pronouncements | Recent Accounting Pronouncements: January 2016 In May 2015, the FASB issued ASU 2015-09, Disclosures about Short-Duration Contracts, and this new guidance will enhance disclosures about an entity's insurance liabilities. This guidance will provide additional information about unpaid claims and claim development, including supplemental disaggregated incurred and paid claim data. Under the guidance, enhanced disclosures on claim frequency and reserving methodologies are required. The guidance became effective for annual periods beginning after December 15, 2015 and for interim periods beginning after December 15, 2016, however early adoption was permitted. The Company has adopted the guidance and the adoption of this guidance did not impact our consolidated financial position, results of operations or cash flows. In May 2015, the FASB issued ASU 2015-07 – Fair Value Measurement – (Topic 820) Disclosures for Investments in Certain Entities that Calculate Net Asset Value per Share (or its equivalent) (a consensus of the Emerging Issues Task Force), which became effective for fiscal years beginning after December 15, 2015. The new pronouncement was issued to ensure that all investments categorized in the fair value hierarchy are classified using a consistent approach. The Company adopted the guidance and the adoption of this guidance did not have a material impact on presentation of data in our consolidated financial statements. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606), as amended by subsequently issued ASUs, to clarify the principles for recognizing revenue. While insurance contracts are not within the scope of this updated guidance, the Company's service and fee income could be subject to this updated guidance. The updated guidance requires an entity to recognize revenue as performance obligations are met, in order to reflect the transfer of promised goods or services to customers in an amount that reflects the consideration the entity is entitled to receive for those goods or services. The following steps are applied in the updated guidance: (1) identify the contract(s) with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when, or as, the entity satisfies a performance obligation. In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, which deferred the effective date of ASU 2014-09 to the quarter ending March 31, 2018. The Company has performed an initial evaluation of the impact this guidance will have on its results of operations, financial position or liquidity. The Company does not expect the guidance to have a material impact on its results of operations, financial position or liquidity. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), or ASU 2016-02. Upon the effective date, ASU 2016-02 will supersede the current lease guidance in ASC Topic 840, Leases. Under the new guidance, lessees will be required to recognize for all leases, with the exception of short-term leases, a lease liability, which is a lessee's obligation to make lease payments arising from a lease, measured on a discounted basis. Concurrently, lessees will be required to recognize a right-of-use asset, which is an asset that represents the lessee's right to use, or control the use of, a specified asset for the lease term. ASU 2016-02 is effective for interim and annual reporting periods beginning after December 15, 2018, with early adoption permitted. The guidance is required to be applied using a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative periods presented in the financial statements. The Company is currently evaluating the effects that adoption of ASU 2016-02 will have on our consolidated financial statements, results of operations and cash flows. The Company does not expect the guidance to have a material impact on its results of operations, financial position or liquidity. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, or ASU 2016-13. This update introduces a current expected credit loss model for measuring expected credit losses for certain types of financial instruments held at the reporting date based on historical experience, current conditions and reasonable supportable forecasts. ASU 2016-13 replaces the current incurred loss model for measuring expected credit losses, requires expected losses on available-for-sale debt securities to be recognized through an allowance for credit losses rather than as reductions in the amortized cost of the securities, and provides for additional disclosure requirements. ASU 2016-13 is effective for interim and annual reporting periods beginning after December 15, 2019, with early adoption permitted for interim and annual reporting periods beginning after December 15, 2018. The Company is currently evaluating the effects the adoption of ASU 2016-13 will have on the consolidated financial statements, results of operations and cash flows. |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Investments [Abstract] | |
Summary of available for sale securities | 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) December 31, 2016 Fixed maturities Agency collateralized mortgage obligations $ 6,171 $ 6,000 $ 171 $ - $ 171 Agency mortgage-backed securities 4,770 4,751 57 (38 ) 19 Asset-backed securities 45,183 45,207 458 (482 ) (24 ) Bank loans 10,349 10,222 149 (22 ) 127 Certificates of deposit 3,117 3,126 - (9 ) (9 ) Collateralized mortgage obligations 9,104 9,096 290 (282 ) 8 Corporate securities 142,683 143,356 1,643 (2,316 ) (673 ) Mortgage-backed securities 24,571 23,904 1,132 (465 ) 667 Municipal obligations 129,335 130,204 391 (1,260 ) (869 ) Non-U.S. government obligations 24,681 26,461 230 (2,010 ) (1,780 ) U.S. government obligations 91,940 92,234 74 (368 ) (294 ) Total fixed maturities 491,904 494,561 4,595 (7,252 ) (2,657 ) Equity securities: Consumer 32,576 15,231 17,656 (311 ) 17,345 Energy 12,842 5,641 7,203 (2 ) 7,201 Financial 31,186 22,417 8,998 (229 ) 8,769 Industrial 21,145 6,239 15,098 (192 ) 14,906 Technology 8,858 4,117 4,769 (28 ) 4,741 Mutual fund 6,995 6,930 121 (56 ) 65 Other 6,343 4,327 2,181 (165 ) 2,016 Total equity securities 119,945 64,902 56,026 (983 ) 55,043 Total $ 611,849 $ 559,463 $ 60,621 $ (8,235 ) 52,386 Applicable federal income taxes (18,335 ) Net unrealized gains - net of tax $ 34,051 Net Cost or Gross Gross Unrealized Fair Amortized Unrealized Unrealized Gains Value Cost Gains Losses (Losses) December 31, 2015 Fixed maturities Agency collateralized mortgage obligations $ - $ - $ - $ - $ - Agency mortgage-backed securities 3,157 3,159 38 (40 ) (2 ) Asset-backed securities 44,309 45,941 393 (2,025 ) (1,632 ) Bank loans 5,060 5,333 4 (277 ) (273 ) Certificates of deposit 3,230 3,247 - (17 ) (17 ) Collateralized mortgage obligations 9,257 9,282 116 (141 ) (25 ) Corporate securities 110,511 112,615 2,123 (4,227 ) (2,104 ) Mortgage-backed securities 23,892 24,138 243 (489 ) (246 ) Municipal obligations 110,578 109,932 805 (159 ) 646 Non-U.S. government obligations 23,945 25,483 342 (1,880 ) (1,538 ) U.S. government obligations 103,245 103,448 56 (259 ) (203 ) Total fixed maturities 437,184 442,578 4,120 (9,514 ) (5,394 ) Equity securities: Consumer 46,541 16,849 30,535 (843 ) 29,692 Energy 8,635 6,152 3,323 (840 ) 2,483 Financial 35,686 24,173 12,265 (752 ) 11,513 Industrial 24,841 9,325 15,840 (324 ) 15,516 Technology 11,596 6,153 5,546 (103 ) 5,443 Mutual fund 9,983 11,022 69 (1,108 ) (1,039 ) Other 8,216 6,547 2,829 (1,160 ) 1,669 Total equity securities 145,498 80,221 70,407 (5,130 ) 65,277 Total $ 582,682 $ 522,799 $ 74,527 $ (14,644 ) 59,883 Applicable federal income taxes (20,959 ) Net unrealized gains - net of tax $ 38,924 |
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: 2016 2015 Number of Securities Fair Value Gross Unrealized Loss Number of Securities Fair Value Gross Unrealized Loss Fixed maturity securities: 12 months or less 397 $ 291,048 $ (4,380 ) 328 $ 205,475 $ (5,070 ) Greater than 12 months 54 32,054 (2,872 ) 168 108,043 (4,444 ) Total fixed maturities 451 323,102 (7,252 ) 496 313,518 (9,514 ) Equity securities: 12 months or less 35 20,698 (983 ) 73 26,517 (5,130 ) Greater than 12 months - - - - - - Total equity securities 35 20,698 (983 ) 73 26,517 (5,130 ) Total 486 $ 343,800 $ (8,235 ) 569 $ 340,035 $ (14,644 ) |
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, 2016, organized 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 $ 87,661 17.8 % $ 88,139 17.8 % Excess of one year to five years 273,874 55.7 276,995 56.0 Excess of five years to ten years 35,553 7.2 35,409 7.2 Excess of ten years 5,017 1.0 5,060 1.0 Total maturities 402,105 81.7 405,603 82.0 Asset-backed securities 89,799 18.3 88,958 18.0 $ 491,904 100.0 % $ 494,561 100.0 % |
Major categories of investment income | Major categories of investment income for the years ended December 31 are summarized as follows: 2016 2015 2014 Interest on fixed maturities $ 13,254 $ 11,663 $ 8,806 Dividends on equity securities 3,598 3,445 2,693 Money market funds, Short-term and other 128 32 37 16,980 15,140 11,536 Investment expenses (2,497 ) (2,642 ) (2,481 ) Net investment income $ 14,483 $ 12,498 $ 9,055 |
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: 2016 2015 2014 Fixed maturities: Gross gains $ 11,628 $ 6,633 $ 6,480 Gross losses (14,020 ) (13,634 ) (4,596 ) Net gains (losses) (2,392 ) (7,001 ) 1,884 Equity securities: Gross gains 28,742 21,070 7,467 Gross losses (5,595 ) (13,643 ) (1,529 ) Net gains 23,147 7,427 5,938 Limited partnerships - net gain (loss) 2,473 (1,687 ) 7,108 Total net gains (losses) $ 23,228 $ (1,261 ) $ 14,930 |
Schedule of realized gains (losses) | 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: 2016 2015 2014 Cumulative charges to income at beginning of year $ 10,513 $ 7,168 $ 6,770 Writedowns based on objective and subjective criteria 5,743 7,700 689 Recovery of prior writedowns upon sale or disposal (12,260 ) (4,355 ) (291 ) Net pre-tax realized gain (loss) 6,517 (3,345 ) (398 ) Cumulative charges to income at end of year $ 3,996 $ 10,513 $ 7,168 Unrealized gain on investments previously written down at end of the year 1 $ 2,108 $ 14,710 $ 17,127 1 |
Financial information of significant limited partnership investment | The summarized financial information of this limited partnership investment as of and for the years ended December 31 is as follows: 2016 2015 2014 Total assets $ 448,263 $ 511,118 $ 565,500 Total partners' capital 408,275 470,783 542,700 Net increase (decrease) in partners' capital resulting from operations (15,679 ) (19,603 ) 125,700 |
Loss and Loss Expense Reserves
Loss and Loss Expense Reserves (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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: 2016 2015 2014 Property and casualty insurance $ 5,441 $ (10,289 ) $ (5,423 ) Reinsurance 8,395 227 (4,931 ) Totals $ 13,836 $ (10,062 ) $ (10,354 ) |
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: 2016 2015 2014 Property and casualty insurance $ 5,441 $ (10,289 ) $ (5,423 ) Reinsurance 8,395 227 (4,931 ) Totals $ 13,836 $ (10,062 ) $ (10,354 ) |
Incurred claims development net of reinsurance | The following is information about incurred claims development as of December 31, 2016, net of reinsurance, as well as cumulative claim frequency and the total of incurred ‐ ‐ ‐ Workers' Compensation ($ in thousands) As of December 31, 2016 Total of Incurred- but-Not-Reported Liabilities Plus Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance Expected Cumulative Accident For the Years Ended December 31 (2007-2015 is Supplementary Information and Unaudited) Development on Number of Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Reported Claims Reported Claims 2007 $ 9,050 $ 11,930 $ 13,298 $ 12,023 $ 11,239 $ 11,790 $ 12,175 $ 12,637 $ 12,340 $ 12,399 $ 173 2,828 2008 19,833 23,640 24,715 24,721 24,855 25,109 23,916 24,048 24,352 661 3,649 2009 17,270 20,931 21,447 21,261 21,268 20,767 20,641 20,817 1,060 3,784 2010 20,644 20,111 19,400 19,300 18,849 18,344 19,195 1,107 4,222 2011 26,057 26,628 26,958 26,767 25,515 27,293 2,784 4,543 2012 23,965 25,544 24,887 24,485 25,616 3,136 4,477 2013 27,619 30,638 29,913 32,121 5,170 5,255 2014 36,768 36,968 34,009 6,908 5,371 2015 26,277 23,115 6,462 6,219 2016 35,240 20,695 5,520 Total $ 254,157 $ 48,156 Commercial Liability ($ in thousands) As of December 31, 2016 Total of Incurred- but-Not-Reported Liabilities Plus Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance Expected Cumulative Accident For the Years Ended December 31 (2007-2015 is Supplementary Information and Unaudited) Development on Number of Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Reported Claims Reported Claims 2007 $ 38,486 $ 41,803 $ 41,692 $ 41,146 $ 41,216 $ 40,429 $ 40,505 $ 40,516 $ 39,598 $ 39,436 $ 79 1,380 2008 34,693 28,591 27,311 25,511 23,989 24,892 24,902 23,480 23,482 23 948 2009 29,707 30,406 30,203 26,280 27,259 25,872 25,373 25,320 70 899 2010 31,124 22,161 21,899 19,139 20,300 19,764 19,377 40 2,398 2011 46,829 43,832 31,633 36,894 35,805 37,122 89 2,899 2012 49,743 54,269 49,743 51,367 48,708 279 3,124 2013 53,817 39,143 37,701 36,371 671 3,739 2014 49,971 52,254 52,483 2,239 3,271 2015 61,420 70,174 5,800 3,086 2016 61,638 $ 27,480 3,193 Total $ 414,111 $ 36,770 Professional Liability Assumed ($ in thousands) As of December 31, 2016 Total of Incurred- but-Not-Reported Liabilities Plus Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance Expected Cumulative Accident For the Years Ended December 31 (2007-2015 is Supplementary Information and Unaudited) Development on Number of Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Reported Claims Reported Claims 2007 2008 2009 2010 $ 2,196 $ 4,277 $ 7,827 $ 7,946 $ 9,733 $ 10,740 $ 11,689 $ 270 N/A 2011 10,492 8,314 9,017 9,859 10,779 12,735 628 N/A 2012 10,041 9,276 5,569 10,157 14,605 2,653 N/A 2013 14,370 13,034 11,618 17,694 3,449 N/A 2014 12,675 8,825 7,259 3,178 N/A 2015 11,638 7,859 6,956 N/A 2016 6,368 $ 6,368 N/A Total $ 78,210 $ 23,502 |
Information about paid claims development | The following is information about paid claims development as of December 31, 2016, net of reinsurance. Workers' Compensation ($ in thousands) Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net of Reinsurance Accident For the Years Ended December 31 (2007-2015 is Supplementary Information and Unaudited) Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2007 $ 1,525 $ 6,072 $ 8,064 $ 7,805 $ 8,352 $ 9,226 $ 9,571 $ 9,974 $ 10,138 10,401 2008 6,046 13,919 17,320 18,943 20,055 20,839 21,306 21,883 22,199 2009 4,186 10,073 13,343 15,576 16,592 17,448 18,028 18,514 2010 3,974 9,134 11,963 13,845 14,966 15,835 16,590 2011 4,916 11,912 15,973 18,884 20,617 21,622 2012 4,597 11,004 14,834 17,415 18,946 2013 4,880 12,792 18,065 21,655 2014 5,328 13,665 19,075 2015 2,918 10,128 2016 5,784 Total $ 164,914 Outstanding liabilities prior to 2007 net of reinsurance 12,640 Liabilities for claims and claims adjustment expenses, net of reinsurance $ 101,883 Commercial Liability ($ in thousands) Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net of Reinsurance Accident For the Years Ended December 31 (2007-2015 is Supplementary Information and Unaudited) Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2007 $ 5,493 $ 17,302 $ 32,571 $ 36,150 $ 38,621 $ 39,006 $ 39,069 $ 39,160 $ 39,216 $ 39,193 2008 2,612 8,942 15,733 21,220 21,396 23,169 23,354 23,444 23,500 2009 928 17,880 19,718 23,521 24,866 25,066 25,114 25,125 2010 1,649 7,166 11,635 16,052 18,627 18,517 18,866 2011 1,809 11,350 23,615 30,795 33,255 34,009 2012 3,086 23,252 32,942 45,303 47,601 2013 5,167 15,772 25,270 34,481 2014 4,023 9,046 28,393 2015 10,923 27,582 2016 6,843 Total $ 285,593 Outstanding liabilities prior to 2007 net of reinsurance 4,621 Liabilities for claims and claims adjustment expenses, net of reinsurance $ 133,139 Professional Liability Assumed ($ in thousands) Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net of Reinsurance Accident For the Years Ended December 31 (2007-2015 is Supplementary Information and Unaudited) Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2007 2008 2009 2010 $ 41 $ 729 $ 3,505 $ 5,844 $ 7,758 $ 9,904 $ 11,132 2011 50 637 2,061 4,983 8,104 10,404 2012 103 992 2,388 5,077 8,355 2013 123 1,135 5,088 10,988 2014 723 761 2,241 2015 10 390 2016 - Total $ 43,510 Outstanding liabilities prior to 2007 net of reinsurance - Liabilities for claims and claims adjustment expenses, net of reinsurance $ 34,700 |
Reconciliation of net incurred and paid claims development | The reconciliation of the net incurred and paid claims development tables to the liability for claims and claim adjustment expenses in the consolidated statement of financial position is as follows. Net outstanding liabilities Commercial Liability $ 133,139 Workers' Compensation 101,883 Professional Liability Assumed 34,700 Other short-duration insurance lines 38,556 Liabilities for unpaid claims and claim adjustment expenses, net of reinsurance 308,278 Reinsurance recoverable on unpaid claims Commercial Liability 85,549 Workers' Compensation 153,847 Professional Liability Assumed - Other short-duration insurance lines 12,167 Reinsurance recoverable on unpaid losses at the end of the year 251,563 Unallocated claims adjustment expenses 16,489 Total gross liability for unpaid claims and claims adjustment expense $ 576,330 |
Supplementary information about average historical claims duration | The following is supplementary information about average historical claims duration as of December 31, 2016. Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (Supplementary Information and Unaudited) Years 1 2 3 4 5 6 7 8 9 10 Commercial Liability 9.7 % 31.3 % 26.7 % 20.0 % 6.2 % 2.2 % 0.7 % 0.2 % 0.2 % 0.1 % Workers' Compensation 17.4 % 28.3 % 15.3 % 8.1 % 5.3 % 4.5 % 2.9 % 2.7 % 1.3 % 2.1 % Professional Liability Assumed 1.7 % 4.6 % 17.4 % 23.7 % 21.1 % 18.2 % 10.5 % |
Reinsurance (Tables)
Reinsurance (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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 premiums written and earned for the most recent three years: Premiums Written Premiums Earned 2016 2015 2014 2016 2015 2014 Direct $ 395,625 $ 366,668 $ 343,200 $ 394,679 $ 370,499 $ 342,656 Ceded on direct (131,166 ) (128,338 ) (118,942 ) (129,926 ) (128,135 ) (117,973 ) Net direct 264,459 238,330 224,258 264,753 242,364 224,683 Assumed 7,379 16,885 39,188 11,344 21,533 38,219 Ceded on assumed (86 ) (562 ) (1,275 ) (86 ) (562 ) (1,275 ) Net assumed 7,293 16,323 37,913 11,258 20,971 36,944 Net $ 271,752 $ 254,653 $ 262,171 $ 276,011 $ 263,335 $ 261,627 |
Components of reinsurance recoverable | Components of reinsurance recoverable at December 31 are as follows: 2016 2015 Case unpaid losses, net of valuation allowance $ 126,244 $ 120,320 Incurred but not reported unpaid losses and loss expenses 123,819 90,578 Paid losses and loss expenses 1,760 2,452 Unearned premiums 3,201 2,538 $ 255,024 $ 215,888 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Taxes [Abstract] | |
Significant components of deferred tax assets and liabilities | 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: 2016 2015 Deferred tax liabilities: Unrealized gain on fixed income and equity security investments $ 18,335 $ 20,959 Deferred acquisition costs 874 877 Loss and loss expense reserves 1,198 2,305 Limited partnership investments 2,274 1,771 Accelerated depreciation 1,037 897 Other 1,251 1,024 Total deferred tax liabilities 24,969 27,833 Deferred tax assets: Loss and loss expense reserves 9,467 9,349 Unearned premiums discount 1,295 1,593 Other-than-temporary investment declines 858 3,437 Deferred compensation 1,097 1,699 Deferred ceding commission 464 371 Other 376 186 Total deferred tax assets 13,557 16,635 Net deferred tax liabilities $ (11,412 ) $ (11,198 ) |
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: 2016 2015 2014 Statutory federal income rate applied to pretax income $ 15,069 $ 11,883 $ 15,539 Tax effect of (deduction): Tax-exempt investment income (938 ) (919 ) (924 ) Other (22 ) (295 ) 66 Federal income tax expense $ 14,109 $ 10,669 $ 14,681 |
Federal income tax expense | Federal income tax expense consists of the following: 2016 2015 2014 Taxes (benefit) on pre-tax income: Current $ 11,271 $ 12,488 $ 13,041 Deferred 2,838 (1,819 ) 1,640 $ 14,109 $ 10,669 $ 14,681 |
Components of provisions for deferred federal income taxes (credits) | 2016 2015 2014 Limited partnerships $ 503 $ (2,865 ) $ 2,025 Discounts of loss and loss expense reserves (114 ) 1,526 113 Reserves - salvage and subrogation and other (1,110 ) 29 (280 ) Unearned premium discount 298 608 (38 ) Deferred compensation 595 (127 ) (685 ) Other-than-temporary investment declines 2,320 (1,416 ) (19 ) Deferred acquisitions costs and ceding commission (95 ) (287 ) (20 ) Other 441 713 544 Provision for deferred federal income tax $ 2,838 $ (1,819 ) $ 1,640 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Shareholders' Equity [Abstract] | |
Changes in common stock outstanding and additional paid-in capital | 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, 2014 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 Restricted stock grants - - 46,552 2 1,092 Balance at December 31, 2015 2,623,109 112 12,402,941 529 52,946 Restricted stock grants - - 57,959 3 1,340 Balance at December 31, 2016 2,623,109 $ 112 12,460,900 $ 532 $ 54,286 |
Other Operating Expenses (Table
Other Operating Expenses (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Other Operating Expenses [Abstract] | |
Details of other operating expenses | Details of other operating expenses for the years ended December 31: 2016 2015 2014 Amortization of gross deferred policy acquisition costs $ 51,597 $ 50,270 $ 48,872 Other underwriting expenses 41,692 42,638 37,830 Expense allowances from reinsurers (33,512 ) (28,956 ) (23,797 ) Total underwriting expenses 59,777 63,952 62,905 Operating expenses of non-insurance companies 29,685 26,621 25,143 Total other operating expenses $ 89,462 $ 90,573 $ 88,048 |
Stock Purchase and Option Pla39
Stock Purchase and Option Plans (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Stock Purchase and Option Plans [Abstract] | |
Summary of stock issuances | The table below provides detail of the stock issuances for 2016, 2015 and 2014: Effective Number of Shares Vesting Value Date Issued Date Period Per Share 5/8/2014 17,237 5/8/2015 7/1/2014 - 6/30/2015 $ 25.53 5/12/2015 21,252 5/12/2016 7/1/2015 - 6/30/2016 $ 22.59 5/10/2016 17,677 5/10/2017 7/1/2016 - 6/30/2017 $ 24.89 |
Reportable Segments (Tables)
Reportable Segments (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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: 2016 2015 2014 Gross Premiums Written: Property and casualty insurance $ 395,625 $ 366,668 $ 343,200 Reinsurance 7,379 16,885 39,188 Totals $ 403,004 $ 383,553 $ 382,388 Net Premiums Earned: Property and casualty insurance $ 264,753 $ 242,364 $ 224,683 Reinsurance 11,258 20,971 36,944 Totals $ 276,011 $ 263,335 $ 261,627 Segment Underwriting Gain (Loss): Property and casualty insurance $ 12,424 $ 24,279 $ 16,221 Reinsurance (8,199 ) (1,504 ) 2,147 Totals $ 4,225 $ 22,775 $ 18,368 |
Reconciles reportable segment underwriting gain (loss) | The following table reconciles reportable segment underwriting gain (loss) to income before federal income taxes included in the Company's consolidated statements of income for the years ended December 31, 2016, 2015 and 2014: 2016 2015 2014 Profit: Segment underwriting gain $ 4,225 $ 22,775 $ 18,368 Net investment income 14,483 12,498 9,055 Net realized gains (losses) on investments 23,228 (1,261 ) 14,930 Corporate and other income (expenses) 1,118 (60 ) 2,045 Income before federal income taxes $ 43,054 $ 33,952 $ 44,398 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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: 2016 2015 2014 Average shares outstanding for basic earnings per share 15,071,900 15,010,454 14,963,959 Dilutive effect of share equivalents 12,108 11,308 11,935 Average shares outstanding for diluted earnings per share 15,084,008 15,021,762 14,975,894 |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016: Description Total Level 1 Level 2 Level 3 Fixed maturities: Agency collateralized mortgage obligations $ 6,171 $ - $ 6,171 $ - Agency mortgage-backed securities 4,770 - 4,770 - Asset-backed securities 45,183 - 37,919 7,264 Bank loans 10,349 - - 10,349 Certificates of deposit 3,117 3,117 - - Collateralized mortgage obligations 9,104 - 6,409 2,695 Corporate securities 137,932 - 135,794 2,138 Options embedded in convertible securities 4,751 - 4,751 - Mortgage-backed securities 24,571 - 22,206 2,365 Municipal obligations 129,335 - 129,190 145 Non-U.S. government obligations 24,681 - 24,419 262 U.S. government obligations 91,940 - 91,940 - Total fixed maturities 491,904 3,117 463,569 25,218 Equity securities: Consumer 32,576 32,576 - - Energy 12,842 12,842 - - Financial 31,186 30,943 243 - Industrial 21,145 20,262 883 - Technology 8,858 8,858 - - Mutual fund 6,995 - 6,995 - Other 6,343 6,343 - - Total equity securities 119,945 111,824 8,121 - Short term 1,500 1,500 - - Cash equivalents 59,683 - 59,683 - Total $ 673,032 $ 116,441 $ 531,373 $ 25,218 As of December 31, 2015: Description Total Level 1 Level 2 Level 3 Fixed maturities: Agency collateralized mortgage obligations $ - $ - $ - $ - Agency mortgage-backed securities 3,157 - 3,157 - Asset-backed securities 44,309 - 37,235 7,074 Bank loans 5,060 - - 5,060 Certificates of deposit 3,230 - 3,230 - Collateralized mortgage obligations 9,257 - 9,257 - Corporate securities 108,116 - 105,108 3,008 Options embedded in convertible securities 2,395 - 2,395 - Mortgage-backed securities 23,892 - 22,523 1,369 Municipal obligations 110,578 - 110,578 - Non-U.S. government obligations 23,945 - 23,663 282 U.S. government obligations 103,245 - 103,245 - Total fixed maturities 437,184 - 420,391 16,793 Equity securities: Consumer 46,541 46,541 - - Energy 8,635 8,635 - - Financial 35,686 34,431 1,255 - Industrial 24,841 24,274 567 - Technology 11,596 11,596 - - Mutual fund 9,983 - 9,983 - Other 8,216 8,216 - - Total equity securities 145,498 133,693 11,805 - Short term 2,220 2,220 - - Cash equivalents 69,517 - 69,517 - Total $ 654,419 $ 135,913 $ 501,713 $ 16,793 |
Reconciliation of beginning and ending balances of assets measured at fair value on a recurring basis using level 3 inputs | 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: 2016 2015 Beginning of period balance $ 16,793 $ 12,208 Total gains or losses (realized) included in income 1,846 (104 ) Purchases 5,540 2,284 Settlements (8,791 ) (8,068 ) Transfers into Level 3 10,202 11,586 Transfers out of Level 3 (372 ) (1,113 ) End of period balance $ 25,218 $ 16,793 |
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, 2016 and 2015 is as follows: 2016: Carrying Fair Value Value Level 1 Level 2 Level 3 Total Assets: Limited partnerships $ 76,469 $ - $ - $ 76,469 $ 76,469 Liabilities: Short-term borrowings 20,000 - 20,000 - 20,000 2015: Assets: Limited partnerships $ 75,458 $ - $ - $ 75,458 $ 75,458 Liabilities: Short-term borrowings 20,000 - 20,000 - 20,000 |
Quarterly Results of Operatio43
Quarterly Results of Operations (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Results of Operations (Unaudited) [Abstract] | |
Quarterly results of operations | Quarterly results of operations are as follows: Results by Quarter 2016 2015 1st 2nd 3rd 4th 1st 2nd 3rd 4th Net premiums earned $ 66,909 $ 68,726 $ 71,235 $ 69,141 $ 66,446 $ 65,449 $ 65,445 $ 65,995 Net investment income 3,440 3,549 3,513 3,982 2,815 2,898 3,014 3,771 Net gains (losses) on investments 9,012 280 7,732 6,204 3,743 (1,166 ) (2,086 ) (1,753 ) Losses and loss expenses incurred 38,623 42,666 56,827 48,366 41,646 37,031 35,212 41,860 Net income 14,112 5,969 4,001 4,864 6,243 5,718 7,780 3,541 Net income per share - diluted $ .94 $ .40 $ .27 $ .32 $ .42 $ .38 $ .52 $ .24 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Leases [Abstract] | |
Future lease payments for operating leases with initial or remaining noncancelable terms of one year or more | At December 31, 2016, future lease payments for operating leases with initial or remaining noncancelable terms of one year or more consisted of the following: 2017 $ 349 2018 207 2019 207 2020 and thereafter 10 Total minimum payments required $ 773 |
Accumulated Other Comprehensi45
Accumulated Other Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Accumulated Other Comprehensive Income [Abstract] | |
Reconciliation of components of accumulated other comprehensive income | A reconciliation of the components of accumulated other comprehensive income at December 31 is as follows: 2016 2015 Investments: Total unrealized gain before federal income taxes $ 52,386 $ 59,883 Deferred tax liability (18,335 ) (20,959 ) Net unrealized gains on investments 34,051 38,924 Foreign exchange adjustment: Total unrealized losses (1,278 ) (1,640 ) Deferred tax benefit 447 574 Net unrealized losses on foreign exchange adjustment (831 ) (1,066 ) Accumulated other comprehensive income $ 33,220 $ 37,858 |
Changes in net unrealized gains on investments | Details of changes in net unrealized gains on investments for the years ended December 31 are as follows: 2016 2015 2014 Investments: Pre-tax holding gains (losses) on debt and equity securities arising during period $ 13,259 $ (19,445 ) $ 12,055 Less: applicable federal income taxes 4,641 (6,806 ) 4,220 8,618 (12,639 ) 7,835 Pre-tax gains on debt and equity securities included in net income during period 20,755 426 7,823 Less: applicable federal income taxes 7,264 149 2,739 13,491 277 5,084 Change in unrealized gains on investments $ (4,873 ) $ (12,916 ) $ 2,751 |
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: 2016 2015 2014 Beginning accumulated other comprehensive income $ 37,858 $ 52,230 $ 50,490 Change in foreign exchange adjustment 235 (1,456 ) (1,011 ) Change in unrealized net gains on investments (4,873 ) (12,916 ) 2,751 Ending accumulated other comprehensive income $ 33,220 $ 37,858 $ 52,230 2016 2015 2014 Beginning retained earnings $ 303,053 $ 294,773 $ 280,003 Net income 28,945 23,283 29,717 Dividends (15,803 ) (15,003 ) (14,947 ) Ending retained earnings $ 316,195 $ 303,053 $ 294,773 |
Investments (Details)
Investments (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016USD ($)DirectorSecurityPartnershipInvestment | Dec. 31, 2015USD ($)Security | Dec. 31, 2014USD ($) | ||
Net Investment Income [Line Items] | ||||
Investment Income | $ 16,980 | $ 15,140 | $ 11,536 | |
Investment expenses | (2,497) | (2,642) | (2,481) | |
Net investment income | 14,483 | 12,498 | 9,055 | |
Available-for-sale Securities, Fair Value to Amortized Cost Basis [Abstract] | ||||
Fair value | 611,849 | 582,682 | ||
Cost or amortized cost | 559,463 | 522,799 | ||
Gross unrealized gains | 60,621 | 74,527 | ||
Gross unrealized losses | (8,235) | (14,644) | ||
Net unrealized gains (losses) | 52,386 | 59,883 | ||
Applicable federal income taxes | (18,335) | (20,959) | ||
Net unrealized gains - net of tax | $ 34,051 | $ 38,924 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ||||
Number of Securities, total | Security | 486 | 569 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||||
Fair value, total | $ 343,800 | $ 340,035 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses [Abstract] | ||||
Gross unrealized loss, total | (8,235) | (14,644) | ||
Gain and Loss on Investment [Abstract] | ||||
Limited partnerships - net gain (loss) | 2,473 | (1,687) | 7,108 | |
Total net gains (losses) | 23,228 | (1,261) | 14,930 | |
Shareholders' equity, net of deferred federal income taxes and undistributed earnings from limited partnership | 28,110 | |||
Adjustments for other-than-temporary impairment [Roll Forward] | ||||
Cumulative charges to income at beginning of year | 10,513 | 7,168 | 6,770 | |
Writedowns based on objective and subjective criteria | 5,743 | 7,700 | 689 | |
Recovery of prior writedowns upon sale or disposal | (12,260) | (4,355) | (291) | |
Net pre-tax realized gain (loss) | 6,517 | (3,345) | (398) | |
Cumulative charges to income at end of year | 3,996 | 10,513 | 7,168 | |
Unrealized gain on investments previously written down at end of the year | [1] | $ 2,108 | 14,710 | 17,127 |
Limited Partners' Capital Account [Line Items] | ||||
Number of partnerships investment | Partnership | 3 | |||
Aggregate estimated value in limited partnership | $ 44,038 | 45,009 | ||
Market value of equity and fixed maturity securities portfolio managed by broker dealers | 41,706 | |||
Total commissions and net fees earned by broker dealers and affiliates | 207 | 235 | 212 | |
Summarized financial information of significant limited partnership investments [Abstract] | ||||
Total assets | 1,154,137 | 1,085,771 | ||
Total partners' capital | 44,038 | 45,009 | ||
Regulatory deposits with various insurance departments in United States and Canada, fair value | 86,169 | 84,198 | ||
Time certificate of deposit included in short-term investments | $ 1,500 | |||
Percentage of fixed maturities invested in investment grade fixed maturity | 85.00% | |||
Total fixed maturity investments | $ 719 | |||
Number of different investments in fixed maturity | Investment | 1 | |||
Fixed maturity investment below investment grade | $ 69,112 | |||
Percentage of fixed maturity investment to total invested assets | 9.20% | |||
Number of investments in diversified portfolio including catastrophe bonds | Investment | 40 | |||
Net unrealized loss position of diversified portfolio | $ 951 | |||
Directors [Member] | ||||
Limited Partners' Capital Account [Line Items] | ||||
Number of company employees employed by investment firm | Director | 2 | |||
Agency Collateralized Mortgage Obligations [Member] | ||||
Available-for-sale Debt Securities, Amortized Cost Basis [Abstract] | ||||
Fair value | $ 6,171 | 0 | ||
Cost or amortized cost | 6,000 | 0 | ||
Gross unrealized gains | 171 | 0 | ||
Gross unrealized losses | 0 | 0 | ||
Net unrealized gains (losses) | 171 | 0 | ||
Available-for-sale Securities, Debt Maturities, Fair Value [Abstract] | ||||
Total, Fair Value | 6,171 | 0 | ||
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis [Abstract] | ||||
Cost or amortized cost | 6,000 | 0 | ||
Agency Mortgage Backed Securities [Member] | ||||
Available-for-sale Debt Securities, Amortized Cost Basis [Abstract] | ||||
Fair value | 4,770 | 3,157 | ||
Cost or amortized cost | 4,751 | 3,159 | ||
Gross unrealized gains | 57 | 38 | ||
Gross unrealized losses | (38) | (40) | ||
Net unrealized gains (losses) | 19 | (2) | ||
Available-for-sale Securities, Debt Maturities, Fair Value [Abstract] | ||||
Total, Fair Value | 4,770 | 3,157 | ||
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis [Abstract] | ||||
Cost or amortized cost | 4,751 | 3,159 | ||
Asset-backed Securities [Member] | ||||
Available-for-sale Debt Securities, Amortized Cost Basis [Abstract] | ||||
Fair value | 45,183 | 44,309 | ||
Cost or amortized cost | 45,207 | 45,941 | ||
Gross unrealized gains | 458 | 393 | ||
Gross unrealized losses | (482) | (2,025) | ||
Net unrealized gains (losses) | (24) | (1,632) | ||
Available-for-sale Securities, Debt Maturities, Fair Value [Abstract] | ||||
Total, Fair Value | 45,183 | 44,309 | ||
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis [Abstract] | ||||
Cost or amortized cost | 45,207 | 45,941 | ||
Bank Loans [Member] | ||||
Available-for-sale Debt Securities, Amortized Cost Basis [Abstract] | ||||
Fair value | 10,349 | 5,060 | ||
Cost or amortized cost | 10,222 | 5,333 | ||
Gross unrealized gains | 149 | 4 | ||
Gross unrealized losses | (22) | (277) | ||
Net unrealized gains (losses) | 127 | (273) | ||
Available-for-sale Securities, Debt Maturities, Fair Value [Abstract] | ||||
Total, Fair Value | 10,349 | 5,060 | ||
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis [Abstract] | ||||
Cost or amortized cost | 10,222 | 5,333 | ||
Certificates of Deposit [Member] | ||||
Available-for-sale Debt Securities, Amortized Cost Basis [Abstract] | ||||
Fair value | 3,117 | 3,230 | ||
Cost or amortized cost | 3,126 | 3,247 | ||
Gross unrealized gains | 0 | 0 | ||
Gross unrealized losses | (9) | (17) | ||
Net unrealized gains (losses) | (9) | (17) | ||
Available-for-sale Securities, Debt Maturities, Fair Value [Abstract] | ||||
Total, Fair Value | 3,117 | 3,230 | ||
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis [Abstract] | ||||
Cost or amortized cost | 3,126 | 3,247 | ||
Collateralized Mortgage Obligations [Member] | ||||
Available-for-sale Debt Securities, Amortized Cost Basis [Abstract] | ||||
Fair value | 9,104 | 9,257 | ||
Cost or amortized cost | 9,096 | 9,282 | ||
Gross unrealized gains | 290 | 116 | ||
Gross unrealized losses | (282) | (141) | ||
Net unrealized gains (losses) | 8 | (25) | ||
Available-for-sale Securities, Debt Maturities, Fair Value [Abstract] | ||||
Total, Fair Value | 9,104 | 9,257 | ||
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis [Abstract] | ||||
Cost or amortized cost | 9,096 | 9,282 | ||
Corporate Securities [Member] | ||||
Available-for-sale Debt Securities, Amortized Cost Basis [Abstract] | ||||
Fair value | 142,683 | 110,511 | ||
Cost or amortized cost | 143,356 | 112,615 | ||
Gross unrealized gains | 1,643 | 2,123 | ||
Gross unrealized losses | (2,316) | (4,227) | ||
Net unrealized gains (losses) | (673) | (2,104) | ||
Available-for-sale Securities, Debt Maturities, Fair Value [Abstract] | ||||
Total, Fair Value | 142,683 | 110,511 | ||
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis [Abstract] | ||||
Cost or amortized cost | 143,356 | 112,615 | ||
Mortgage-backed Securities [Member] | ||||
Available-for-sale Debt Securities, Amortized Cost Basis [Abstract] | ||||
Fair value | 24,571 | 23,892 | ||
Cost or amortized cost | 23,904 | 24,138 | ||
Gross unrealized gains | 1,132 | 243 | ||
Gross unrealized losses | (465) | (489) | ||
Net unrealized gains (losses) | 667 | (246) | ||
Available-for-sale Securities, Debt Maturities, Fair Value [Abstract] | ||||
Total, Fair Value | 24,571 | 23,892 | ||
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis [Abstract] | ||||
Cost or amortized cost | 23,904 | 24,138 | ||
Municipal Obligations [Member] | ||||
Available-for-sale Debt Securities, Amortized Cost Basis [Abstract] | ||||
Fair value | 129,335 | 110,578 | ||
Cost or amortized cost | 130,204 | 109,932 | ||
Gross unrealized gains | 391 | 805 | ||
Gross unrealized losses | (1,260) | (159) | ||
Net unrealized gains (losses) | (869) | 646 | ||
Available-for-sale Securities, Debt Maturities, Fair Value [Abstract] | ||||
Total, Fair Value | 129,335 | 110,578 | ||
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis [Abstract] | ||||
Cost or amortized cost | 130,204 | 109,932 | ||
Non-U.S. Government Obligations [Member] | ||||
Available-for-sale Debt Securities, Amortized Cost Basis [Abstract] | ||||
Fair value | 24,681 | 23,945 | ||
Cost or amortized cost | 26,461 | 25,483 | ||
Gross unrealized gains | 230 | 342 | ||
Gross unrealized losses | (2,010) | (1,880) | ||
Net unrealized gains (losses) | (1,780) | (1,538) | ||
Available-for-sale Securities, Debt Maturities, Fair Value [Abstract] | ||||
Total, Fair Value | 24,681 | 23,945 | ||
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis [Abstract] | ||||
Cost or amortized cost | 26,461 | 25,483 | ||
U.S. Government Obligations [Member] | ||||
Available-for-sale Debt Securities, Amortized Cost Basis [Abstract] | ||||
Fair value | 91,940 | 103,245 | ||
Cost or amortized cost | 92,234 | 103,448 | ||
Gross unrealized gains | 74 | 56 | ||
Gross unrealized losses | (368) | (259) | ||
Net unrealized gains (losses) | (294) | (203) | ||
Available-for-sale Securities, Debt Maturities, Fair Value [Abstract] | ||||
Total, Fair Value | 91,940 | 103,245 | ||
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis [Abstract] | ||||
Cost or amortized cost | 92,234 | 103,448 | ||
Total Fixed Maturities [Member] | ||||
Available-for-sale Debt Securities, Amortized Cost Basis [Abstract] | ||||
Fair value | 491,904 | 437,184 | ||
Cost or amortized cost | 494,561 | 442,578 | ||
Gross unrealized gains | 4,595 | 4,120 | ||
Gross unrealized losses | (7,252) | (9,514) | ||
Net unrealized gains (losses) | $ (2,657) | $ (5,394) | ||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ||||
Number of Securities 12 months or less | Security | 397 | 328 | ||
Number of Securities Greater than 12 months | Security | 54 | 168 | ||
Number of Securities, total | Security | 451 | 496 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||||
Fair value, 12 months or less | $ 291,048 | $ 205,475 | ||
Fair value, Greater than 12 months | 32,054 | 108,043 | ||
Fair value, total | 323,102 | 313,518 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses [Abstract] | ||||
Gross unrealized loss, less than 12 months | (4,380) | (5,070) | ||
Gross unrealized loss, 12 months or longer | (2,872) | (4,444) | ||
Gross unrealized loss, total | (7,252) | (9,514) | ||
Available-for-sale Securities, Debt Maturities, Fair Value [Abstract] | ||||
One year or less, Fair Value | 87,661 | |||
Excess of one year to five years, Fair Value | 273,874 | |||
Excess of five years to ten years, Fair Value | 35,553 | |||
Excess of ten years, Fair Value | 5,017 | |||
Total maturities, Fair Value | 402,105 | |||
Asset-backed securities, Fair Value | 89,799 | |||
Total, Fair Value | $ 491,904 | 437,184 | ||
Percentage of Available for sale Securities, Debt Maturities, Fair Value [Abstract] | ||||
One year or less, Fair Value | 17.80% | |||
Excess of one year to five years, Fair Value | 55.70% | |||
Excess of five years to ten years, Fair Value | 7.20% | |||
Excess of ten years, Fair Value | 1.00% | |||
Total maturities, Fair Value | 81.70% | |||
Asset-backed securities, Fair Value | 18.30% | |||
Total, Fair Value | 100.00% | |||
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis [Abstract] | ||||
One year or less, Cost or Amortized Cost | $ 88,139 | |||
Excess of one year to five years, Cost or Amortized Cost | 276,995 | |||
Excess of five years to ten years, Cost or Amortized Cost | 35,409 | |||
Excess of ten years, Cost or Amortized Cost | 5,060 | |||
Total maturities, Cost or Amortized Cost | 405,603 | |||
Asset-backed securities, Cost or Amortized Cost | 88,958 | |||
Cost or amortized cost | $ 494,561 | 442,578 | ||
Percentage of Available for sale Securities, Debt Maturities, Amortized Cost Basis, Fiscal Year Maturity [Abstract] | ||||
One year or less, Cost or Amortized Cost | 17.80% | |||
Excess of one year to five years, Cost or Amortized Cost | 56.00% | |||
Excess of five years to ten years, Cost or Amortized Cost | 7.20% | |||
Excess of ten years, Cost or Amortized Cost | 1.00% | |||
Total maturities, Cost or Amortized Cost | 82.00% | |||
Asset-backed securities, Cost or Amortized Cost | 18.00% | |||
Cost or amortized cost | 100.00% | |||
Gain and Loss on Investment [Abstract] | ||||
Gross gains | $ 11,628 | 6,633 | 6,480 | |
Gross losses | (14,020) | (13,634) | (4,596) | |
Net gains (losses) | (2,392) | (7,001) | 1,884 | |
Consumer [Member] | ||||
Available-for-sale Equity Securities, Amortized Cost Basis [Abstract] | ||||
Fair value | 32,576 | 46,541 | ||
Cost or amortized cost | 15,231 | 16,849 | ||
Gross unrealized gains | 17,656 | 30,535 | ||
Gross unrealized losses | (311) | (843) | ||
Net unrealized gains (losses) | 17,345 | 29,692 | ||
Energy [Member] | ||||
Available-for-sale Equity Securities, Amortized Cost Basis [Abstract] | ||||
Fair value | 12,842 | 8,635 | ||
Cost or amortized cost | 5,641 | 6,152 | ||
Gross unrealized gains | 7,203 | 3,323 | ||
Gross unrealized losses | (2) | (840) | ||
Net unrealized gains (losses) | 7,201 | 2,483 | ||
Financial [Member] | ||||
Available-for-sale Equity Securities, Amortized Cost Basis [Abstract] | ||||
Fair value | 31,186 | 35,686 | ||
Cost or amortized cost | 22,417 | 24,173 | ||
Gross unrealized gains | 8,998 | 12,265 | ||
Gross unrealized losses | (229) | (752) | ||
Net unrealized gains (losses) | 8,769 | 11,513 | ||
Industrial [Member] | ||||
Available-for-sale Equity Securities, Amortized Cost Basis [Abstract] | ||||
Fair value | 21,145 | 24,841 | ||
Cost or amortized cost | 6,239 | 9,325 | ||
Gross unrealized gains | 15,098 | 15,840 | ||
Gross unrealized losses | (192) | (324) | ||
Net unrealized gains (losses) | 14,906 | 15,516 | ||
Technology [Member] | ||||
Available-for-sale Equity Securities, Amortized Cost Basis [Abstract] | ||||
Fair value | 8,858 | 11,596 | ||
Cost or amortized cost | 4,117 | 6,153 | ||
Gross unrealized gains | 4,769 | 5,546 | ||
Gross unrealized losses | (28) | (103) | ||
Net unrealized gains (losses) | 4,741 | 5,443 | ||
Mutual Fund [Member] | ||||
Available-for-sale Equity Securities, Amortized Cost Basis [Abstract] | ||||
Fair value | 6,995 | 9,983 | ||
Cost or amortized cost | 6,930 | 11,022 | ||
Gross unrealized gains | 121 | 69 | ||
Gross unrealized losses | (56) | (1,108) | ||
Net unrealized gains (losses) | 65 | (1,039) | ||
Other [Member] | ||||
Available-for-sale Equity Securities, Amortized Cost Basis [Abstract] | ||||
Fair value | 6,343 | 8,216 | ||
Cost or amortized cost | 4,327 | 6,547 | ||
Gross unrealized gains | 2,181 | 2,829 | ||
Gross unrealized losses | (165) | (1,160) | ||
Net unrealized gains (losses) | 2,016 | 1,669 | ||
Total Equity Securities [Member] | ||||
Available-for-sale Equity Securities, Amortized Cost Basis [Abstract] | ||||
Fair value | 119,945 | 145,498 | ||
Cost or amortized cost | 64,902 | 80,221 | ||
Gross unrealized gains | 56,026 | 70,407 | ||
Gross unrealized losses | (983) | (5,130) | ||
Net unrealized gains (losses) | $ 55,043 | $ 65,277 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ||||
Number of Securities 12 months or less | Security | 35 | 73 | ||
Number of Securities Greater than 12 months | Security | 0 | 0 | ||
Number of Securities, total | Security | 35 | 73 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||||
Fair value, 12 months or less | $ 20,698 | $ 26,517 | ||
Fair value, Greater than 12 months | 0 | 0 | ||
Fair value, total | 20,698 | 26,517 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses [Abstract] | ||||
Gross unrealized loss, less than 12 months | (983) | (5,130) | ||
Gross unrealized loss, 12 months or longer | 0 | 0 | ||
Gross unrealized loss, total | (983) | (5,130) | ||
Gain and Loss on Investment [Abstract] | ||||
Gross gains | 28,742 | 21,070 | 7,467 | |
Gross losses | (5,595) | (13,643) | (1,529) | |
Net gains (losses) | 23,147 | 7,427 | 5,938 | |
Limited Partnership [Member] | ||||
Limited Partners' Capital Account [Line Items] | ||||
Commitment to make additional contributions to various limited partnerships | 1,627 | |||
Total investment in three limited partnerships | $ 23,000 | |||
Number of partnerships investment | Partnership | 3 | |||
Aggregate estimated value in limited partnership | $ 44,038 | |||
Number of directors that are executive officers, directors, and owners of the organization managing the limited partnership | Director | 4 | |||
Investment gains (losses), net of fees | $ (971) | (1,978) | 7,088 | |
Management fees | 796 | 749 | 697 | |
Summarized financial information of significant limited partnership investments [Abstract] | ||||
Total partners' capital | $ 44,038 | |||
Limited Partnership [Member] | Minimum [Member] | ||||
Limited Partners' Capital Account [Line Items] | ||||
Ownership interest in limited partnership | 6.00% | |||
Limited Partnership [Member] | Maximum [Member] | ||||
Limited Partners' Capital Account [Line Items] | ||||
Ownership interest in limited partnership | 37.00% | |||
Significant Limited Partnership [Member] | ||||
Limited Partners' Capital Account [Line Items] | ||||
Aggregate estimated value in limited partnership | $ 408,275 | 470,783 | 542,700 | |
Number of significant investments in public and private equity market in India | Investment | 1 | |||
Significant investment in public and private equity markets in India, value | $ 27,153 | 28,270 | ||
Estimated ownership interest in significant limited partnership investment | 6.00% | |||
Earnings (losses) from limited partnership investment | $ (1,117) | (1,599) | 7,176 | |
Summarized financial information of significant limited partnership investments [Abstract] | ||||
Total assets | 448,263 | 511,118 | 565,500 | |
Total partners' capital | 408,275 | 470,783 | 542,700 | |
Net increase (decrease) in partners' capital resulting from operations | (15,679) | (19,603) | 125,700 | |
Total Fixed Maturities [Member] | ||||
Net Investment Income [Line Items] | ||||
Investment Income | 13,254 | 11,663 | 8,806 | |
Total Equity Securities [Member] | ||||
Net Investment Income [Line Items] | ||||
Investment Income | 3,598 | 3,445 | 2,693 | |
Money Market Funds, Short term and Other [Member] | ||||
Net Investment Income [Line Items] | ||||
Investment Income | $ 128 | $ 32 | $ 37 | |
[1] | 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. |
Loss and Loss Expense Reserves,
Loss and Loss Expense Reserves, Activity in Reserves for Losses and Major Components (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Activity in the reserve for losses and loss expenses [Roll Forward] | |||
Reserves at the beginning of the year | $ 301,753 | $ 295,583 | $ 288,088 |
Provision for losses and loss expenses [Abstract] | |||
Claims occurring during the current year | 172,645 | 165,812 | 169,950 |
Claims occurring during prior years | 13,836 | (10,062) | (10,354) |
Total incurred | 186,481 | 155,750 | 159,596 |
Loss and loss expense payments [Abstract] | |||
Claims occurring during the current year | 54,239 | 56,710 | 59,826 |
Claims occurring during prior years | 109,228 | 92,870 | 92,275 |
Total paid | 163,467 | 149,580 | 152,101 |
Reserves at the end of the year | 324,767 | 301,753 | 295,583 |
Reinsurance recoverable on unpaid losses at the end of the year | 251,563 | 211,843 | 210,519 |
Reserves, gross of reinsurance recoverable, at the end of the year | 576,330 | 513,596 | 506,102 |
Savings developed in settlements of claims with comparative developments for previous calendar years | $ 13,836 | ||
Period of comparative developments | 2 years | ||
Major Components of the Development of (Savings) deficiency [Abstract] | |||
Property and casualty insurance | $ 5,441 | (10,289) | (5,423) |
Reinsurance | 8,395 | 227 | (4,931) |
Totals | 13,836 | (10,062) | $ (10,354) |
Salvage and Subrogation Recoveries [Abstract] | |||
Estimated salvage and subrogation recoverable | $ 4,151 | $ 4,674 |
Loss and Loss Expense Reserve48
Loss and Loss Expense Reserves, Incurred Claims Development (Details) $ in Thousands | Dec. 31, 2016USD ($)Claim | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2012USD ($) | Dec. 31, 2011USD ($) | Dec. 31, 2010USD ($) | Dec. 31, 2009USD ($) | Dec. 31, 2008USD ($) | Dec. 31, 2007USD ($) |
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Liabilities for claims and claims adjustment expenses, net of reinsurance | $ 308,278 | |||||||||
Workers' Compensation [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 254,157 | |||||||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | 48,156 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net of reinsurance | 164,914 | |||||||||
Outstanding liabilities prior to 2007 net of reinsurance | 12,640 | |||||||||
Liabilities for claims and claims adjustment expenses, net of reinsurance | 101,883 | |||||||||
Commercial Liability [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 414,111 | |||||||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | 36,770 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net of reinsurance | 285,593 | |||||||||
Outstanding liabilities prior to 2007 net of reinsurance | 4,621 | |||||||||
Liabilities for claims and claims adjustment expenses, net of reinsurance | 133,139 | |||||||||
Professional Liability Assumed [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 78,210 | |||||||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | 23,502 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net of reinsurance | 43,510 | |||||||||
Outstanding liabilities prior to 2007 net of reinsurance | 0 | |||||||||
Liabilities for claims and claims adjustment expenses, net of reinsurance | 34,700 | |||||||||
Accident Year 2007 [Member] | Workers' Compensation [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 12,399 | $ 12,340 | $ 12,637 | $ 12,175 | $ 11,790 | $ 11,239 | $ 12,023 | $ 13,298 | $ 11,930 | $ 9,050 |
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 173 | |||||||||
Cumulative number of reported claims | Claim | 2,828 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net of reinsurance | $ 10,401 | 10,138 | 9,974 | 9,571 | 9,226 | 8,352 | 7,805 | 8,064 | 6,072 | 1,525 |
Accident Year 2007 [Member] | Commercial Liability [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 39,436 | 39,598 | 40,516 | 40,505 | 40,429 | 41,216 | 41,146 | 41,692 | 41,803 | 38,486 |
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 79 | |||||||||
Cumulative number of reported claims | Claim | 1,380 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net of reinsurance | $ 39,193 | 39,216 | 39,160 | 39,069 | 39,006 | 38,621 | 36,150 | 32,571 | 17,302 | $ 5,493 |
Accident Year 2008 [Member] | Workers' Compensation [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 24,352 | 24,048 | 23,916 | 25,109 | 24,855 | 24,721 | 24,715 | 23,640 | 19,833 | |
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 661 | |||||||||
Cumulative number of reported claims | Claim | 3,649 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net of reinsurance | $ 22,199 | 21,883 | 21,306 | 20,839 | 20,055 | 18,943 | 17,320 | 13,919 | 6,046 | |
Accident Year 2008 [Member] | Commercial Liability [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 23,482 | 23,480 | 24,902 | 24,892 | 23,989 | 25,511 | 27,311 | 28,591 | 34,693 | |
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 23 | |||||||||
Cumulative number of reported claims | Claim | 948 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net of reinsurance | $ 23,500 | 23,444 | 23,354 | 23,169 | 21,396 | 21,220 | 15,733 | 8,942 | $ 2,612 | |
Accident Year 2009 [Member] | Workers' Compensation [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 20,817 | 20,641 | 20,767 | 21,268 | 21,261 | 21,447 | 20,931 | 17,270 | ||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 1,060 | |||||||||
Cumulative number of reported claims | Claim | 3,784 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net of reinsurance | $ 18,514 | 18,028 | 17,448 | 16,592 | 15,576 | 13,343 | 10,073 | 4,186 | ||
Accident Year 2009 [Member] | Commercial Liability [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 25,320 | 25,373 | 25,872 | 27,259 | 26,280 | 30,203 | 30,406 | 29,707 | ||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 70 | |||||||||
Cumulative number of reported claims | Claim | 899 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net of reinsurance | $ 25,125 | 25,114 | 25,066 | 24,866 | 23,521 | 19,718 | 17,880 | $ 928 | ||
Accident Year 2010 [Member] | Workers' Compensation [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 19,195 | 18,344 | 18,849 | 19,300 | 19,400 | 20,111 | 20,644 | |||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 1,107 | |||||||||
Cumulative number of reported claims | Claim | 4,222 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net of reinsurance | $ 16,590 | 15,835 | 14,966 | 13,845 | 11,963 | 9,134 | 3,974 | |||
Accident Year 2010 [Member] | Commercial Liability [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 19,377 | 19,764 | 20,300 | 19,139 | 21,899 | 22,161 | 31,124 | |||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 40 | |||||||||
Cumulative number of reported claims | Claim | 2,398 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net of reinsurance | $ 18,866 | 18,517 | 18,627 | 16,052 | 11,635 | 7,166 | 1,649 | |||
Accident Year 2010 [Member] | Professional Liability Assumed [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 11,689 | 10,740 | 9,733 | 7,946 | 7,827 | 4,277 | 2,196 | |||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | 270 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net of reinsurance | 11,132 | 9,904 | 7,758 | 5,844 | 3,505 | 729 | $ 41 | |||
Accident Year 2011 [Member] | Workers' Compensation [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 27,293 | 25,515 | 26,767 | 26,958 | 26,628 | 26,057 | ||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 2,784 | |||||||||
Cumulative number of reported claims | Claim | 4,543 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net of reinsurance | $ 21,622 | 20,617 | 18,884 | 15,973 | 11,912 | 4,916 | ||||
Accident Year 2011 [Member] | Commercial Liability [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 37,122 | 35,805 | 36,894 | 31,633 | 43,832 | 46,829 | ||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 89 | |||||||||
Cumulative number of reported claims | Claim | 2,899 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net of reinsurance | $ 34,009 | 33,255 | 30,795 | 23,615 | 11,350 | 1,809 | ||||
Accident Year 2011 [Member] | Professional Liability Assumed [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 12,735 | 10,779 | 9,859 | 9,017 | 8,314 | 10,492 | ||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | 628 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net of reinsurance | 10,404 | 8,104 | 4,983 | 2,061 | 637 | $ 50 | ||||
Accident Year 2012 [Member] | Workers' Compensation [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 25,616 | 24,485 | 24,887 | 25,544 | 23,965 | |||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 3,136 | |||||||||
Cumulative number of reported claims | Claim | 4,477 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net of reinsurance | $ 18,946 | 17,415 | 14,834 | 11,004 | 4,597 | |||||
Accident Year 2012 [Member] | Commercial Liability [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 48,708 | 51,367 | 49,743 | 54,269 | 49,743 | |||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 279 | |||||||||
Cumulative number of reported claims | Claim | 3,124 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net of reinsurance | $ 47,601 | 45,303 | 32,942 | 23,252 | 3,086 | |||||
Accident Year 2012 [Member] | Professional Liability Assumed [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 14,605 | 10,157 | 5,569 | 9,276 | 10,041 | |||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | 2,653 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net of reinsurance | 8,355 | 5,077 | 2,388 | 992 | $ 103 | |||||
Accident Year 2013 [Member] | Workers' Compensation [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 32,121 | 29,913 | 30,638 | 27,619 | ||||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 5,170 | |||||||||
Cumulative number of reported claims | Claim | 5,255 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net of reinsurance | $ 21,655 | 18,065 | 12,792 | 4,880 | ||||||
Accident Year 2013 [Member] | Commercial Liability [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 36,371 | 37,701 | 39,143 | 53,817 | ||||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 671 | |||||||||
Cumulative number of reported claims | Claim | 3,739 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net of reinsurance | $ 34,481 | 25,270 | 15,772 | 5,167 | ||||||
Accident Year 2013 [Member] | Professional Liability Assumed [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 17,694 | 11,618 | 13,034 | 14,370 | ||||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | 3,449 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net of reinsurance | 10,988 | 5,088 | 1,135 | $ 123 | ||||||
Accident Year 2014 [Member] | Workers' Compensation [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 34,009 | 36,968 | 36,768 | |||||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 6,908 | |||||||||
Cumulative number of reported claims | Claim | 5,371 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net of reinsurance | $ 19,075 | 13,665 | 5,328 | |||||||
Accident Year 2014 [Member] | Commercial Liability [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 52,483 | 52,254 | 49,971 | |||||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 2,239 | |||||||||
Cumulative number of reported claims | Claim | 3,271 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net of reinsurance | $ 28,393 | 9,046 | 4,023 | |||||||
Accident Year 2014 [Member] | Professional Liability Assumed [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 7,259 | 8,825 | 12,675 | |||||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | 3,178 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net of reinsurance | 2,241 | 761 | $ 723 | |||||||
Accident Year 2015 [Member] | Workers' Compensation [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 23,115 | 26,277 | ||||||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 6,462 | |||||||||
Cumulative number of reported claims | Claim | 6,219 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net of reinsurance | $ 10,128 | 2,918 | ||||||||
Accident Year 2015 [Member] | Commercial Liability [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 70,174 | 61,420 | ||||||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 5,800 | |||||||||
Cumulative number of reported claims | Claim | 3,086 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net of reinsurance | $ 27,582 | 10,923 | ||||||||
Accident Year 2015 [Member] | Professional Liability Assumed [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 7,859 | 11,638 | ||||||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | 6,956 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net of reinsurance | 390 | $ 10 | ||||||||
Accident Year 2016 [Member] | Workers' Compensation [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 35,240 | |||||||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 20,695 | |||||||||
Cumulative number of reported claims | Claim | 5,520 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net of reinsurance | $ 5,784 | |||||||||
Accident Year 2016 [Member] | Commercial Liability [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 61,638 | |||||||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 27,480 | |||||||||
Cumulative number of reported claims | Claim | 3,193 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net of reinsurance | $ 6,843 | |||||||||
Accident Year 2016 [Member] | Professional Liability Assumed [Member] | ||||||||||
Incurred Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 6,368 | |||||||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | 6,368 | |||||||||
Cumulative Paid Claims Development, Net of Reinsurance [Abstract] | ||||||||||
Cumulative paid claims and allocated claim adjustment expense, net of reinsurance | $ 0 |
Loss and Loss Expense Reserve49
Loss and Loss Expense Reserves, Incurred Paid Claims Reconciliation (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Net Outstanding Liabilities [Abstract] | ||
Liabilities for unpaid claims and claim adjustment expenses, net of reinsurance | $ 308,278 | |
Reinsurance Recoverable on Unpaid Claims [Abstract] | ||
Reinsurance Recoverable for Unpaid Claims and Claims Adjustments | 251,563 | |
Unallocated claims adjustment expenses | 16,489 | |
Liability for Claims and Claims Adjustment Expense | 576,330 | $ 513,596 |
Workers' Compensation [Member] | ||
Net Outstanding Liabilities [Abstract] | ||
Liabilities for unpaid claims and claim adjustment expenses, net of reinsurance | 101,883 | |
Reinsurance Recoverable on Unpaid Claims [Abstract] | ||
Reinsurance Recoverable for Unpaid Claims and Claims Adjustments | 153,847 | |
Commercial Liability [Member] | ||
Net Outstanding Liabilities [Abstract] | ||
Liabilities for unpaid claims and claim adjustment expenses, net of reinsurance | 133,139 | |
Reinsurance Recoverable on Unpaid Claims [Abstract] | ||
Reinsurance Recoverable for Unpaid Claims and Claims Adjustments | 85,549 | |
Professional Liability Assumed [Member] | ||
Net Outstanding Liabilities [Abstract] | ||
Liabilities for unpaid claims and claim adjustment expenses, net of reinsurance | 34,700 | |
Reinsurance Recoverable on Unpaid Claims [Abstract] | ||
Reinsurance Recoverable for Unpaid Claims and Claims Adjustments | 0 | |
Other Short-duration Insurance Lines [Member] | ||
Net Outstanding Liabilities [Abstract] | ||
Liabilities for unpaid claims and claim adjustment expenses, net of reinsurance | 38,556 | |
Reinsurance Recoverable on Unpaid Claims [Abstract] | ||
Reinsurance Recoverable for Unpaid Claims and Claims Adjustments | $ 12,167 |
Loss and Loss Expense Reserve50
Loss and Loss Expense Reserves, Average Historical Claims Duration (Details) | 12 Months Ended |
Dec. 31, 2016Quarteryr | |
Minimum [Member] | |
Reserve Methodologies for Incurred But Not Reported Losses [Abstract] | |
Number of running accident quarters used | Quarter | 12 |
Number of accident years included in loss development triangles | yr | 15 |
Workers' Compensation [Member] | |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance [Abstract] | |
Year One | 17.40% |
Year Two | 28.30% |
Year Three | 15.30% |
Year Four | 8.10% |
Year Five | 5.30% |
Year Six | 4.50% |
Year Seven | 2.90% |
Year Eight | 2.70% |
Year Nine | 1.30% |
Year Ten | 2.10% |
Professional Liability Assumed [Member] | |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance [Abstract] | |
Year One | 1.70% |
Year Two | 4.60% |
Year Three | 17.40% |
Year Four | 23.70% |
Year Five | 21.10% |
Year Six | 18.20% |
Year Seven | 10.50% |
Commercial Liability [Member] | |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance [Abstract] | |
Year One | 9.70% |
Year Two | 31.30% |
Year Three | 26.70% |
Year Four | 20.00% |
Year Five | 6.20% |
Year Six | 2.20% |
Year Seven | 0.70% |
Year Eight | 0.20% |
Year Nine | 0.20% |
Year Ten | 0.10% |
Reinsurance (Details)
Reinsurance (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Premiums Written [Abstract] | |||||||||||
Direct | $ 395,625 | $ 366,668 | $ 343,200 | ||||||||
Ceded on direct | (131,166) | (128,338) | (118,942) | ||||||||
Net direct | 264,459 | 238,330 | 224,258 | ||||||||
Assumed | 7,379 | 16,885 | 39,188 | ||||||||
Ceded on assumed | (86) | (562) | (1,275) | ||||||||
Net assumed | 7,293 | 16,323 | 37,913 | ||||||||
Net | 271,752 | 254,653 | 262,171 | ||||||||
Premium Earned [Abstract] | |||||||||||
Direct | 394,679 | 370,499 | 342,656 | ||||||||
Ceded on direct | (129,926) | (128,135) | (117,973) | ||||||||
Net direct | 264,753 | 242,364 | 224,683 | ||||||||
Assumed | 11,344 | 21,533 | 38,219 | ||||||||
Ceded on assumed | (86) | (562) | (1,275) | ||||||||
Net assumed | 11,258 | 20,971 | 36,944 | ||||||||
Net | $ 69,141 | $ 71,235 | $ 68,726 | $ 66,909 | $ 65,995 | $ 65,445 | $ 65,449 | $ 66,446 | 276,011 | 263,335 | 261,627 |
Net losses and loss expenses incurred reduced by ceded reinsurance recoveries | 108,656 | 75,581 | 105,891 | ||||||||
Net losses and loss expense incurred from reinsurance assumed from non-affiliates | 14,746 | 13,492 | $ 20,288 | ||||||||
Components of reinsurance recoverable [Abstract] | |||||||||||
Case unpaid losses, net of valuation allowance | 126,244 | 120,320 | 126,244 | 120,320 | |||||||
Incurred but not reported unpaid losses and loss expenses | 123,819 | 90,578 | 123,819 | 90,578 | |||||||
Paid losses and loss expenses | 1,760 | 2,452 | 1,760 | 2,452 | |||||||
Unearned premiums | 3,201 | 2,538 | 3,201 | 2,538 | |||||||
Reinsurance recoverable | $ 255,024 | $ 215,888 | $ 255,024 | $ 215,888 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Deferred tax liabilities [Abstract] | |||
Unrealized gain on fixed income and equity security investments | $ 18,335 | $ 20,959 | |
Deferred acquisition costs | 874 | 877 | |
Loss and loss expense reserves | 1,198 | 2,305 | |
Limited partnership investments | 2,274 | 1,771 | |
Accelerated depreciation | 1,037 | 897 | |
Other | 1,251 | 1,024 | |
Total deferred tax liabilities | 24,969 | 27,833 | |
Deferred tax assets [Abstract] | |||
Loss and loss expense reserves | 9,467 | 9,349 | |
Unearned premiums discount | 1,295 | 1,593 | |
Other-than-temporary investment declines | 858 | 3,437 | |
Deferred compensation | 1,097 | 1,699 | |
Deferred ceding commission | 464 | 371 | |
Other | 376 | 186 | |
Total deferred tax assets | 13,557 | 16,635 | |
Net deferred tax liabilities | (11,412) | (11,198) | |
Summary of the difference between federal income tax expense computed at statutory rate [Abstract] | |||
Statutory federal income rate applied to pretax income | 15,069 | 11,883 | $ 15,539 |
Tax effect of (deduction) [Abstract] | |||
Tax-exempt investment income | (938) | (919) | (924) |
Other | (22) | (295) | |
Other | 66 | ||
Federal income tax expense | 14,109 | 10,669 | 14,681 |
Taxes (benefit) on pre-tax income [Abstract] | |||
Current | 11,271 | 12,488 | 13,041 |
Deferred | 2,838 | (1,819) | 1,640 |
Federal income tax expense | 14,109 | 10,669 | 14,681 |
Components of the provisions for deferred federal income taxes (credits) [Abstract] | |||
Limited partnerships | 503 | (2,865) | 2,025 |
Discounts of loss and loss expense reserves | (114) | 1,526 | 113 |
Reserves - salvage and subrogation and other | (1,110) | 29 | (280) |
Unearned premium discount | 298 | 608 | (38) |
Deferred compensation | 595 | (127) | (685) |
Other-than-temporary investment declines | 2,320 | (1,416) | (19) |
Deferred acquisitions costs and ceding commission | (95) | (287) | (20) |
Other | 441 | 713 | 544 |
Provision for deferred federal income tax | 2,838 | (1,819) | 1,640 |
Cash flows related to federal income taxes paid, net of refunds received | $ 10,173 | $ 14,500 | $ 11,619 |
Shareholders' Equity (Details)
Shareholders' Equity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Amount [Abstract] | |||
Dividends paid to shareholders | $ 15,803 | $ 15,003 | $ 14,947 |
Cash dividends paid (in dollars per share) | $ 1.04 | $ 1 | $ 1 |
Additional Paid-in Capital [Member] | |||
Amount [Abstract] | |||
Balance, Beginning period | $ 52,946 | $ 51,854 | $ 50,594 |
Restricted stock grants | 1,340 | 1,092 | 1,260 |
Balance, Period end | $ 54,286 | $ 52,946 | $ 51,854 |
Class A [Member] | |||
Shares [Abstract] | |||
Balance, Beginning period (in shares) | 2,623,109 | 2,623,109 | 2,623,109 |
Restricted stock grants (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 grants | 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) | 12,402,941 | 12,356,389 | 12,304,191 |
Restricted stock grants (in shares) | 57,959 | 46,552 | 52,198 |
Balance, Period end (in shares) | 12,460,900 | 12,402,941 | 12,356,389 |
Amount [Abstract] | |||
Balance, Beginning period | $ 529 | $ 527 | $ 525 |
Restricted stock grants | 3 | 2 | 2 |
Balance, Period end | $ 532 | $ 529 | $ 527 |
Stated value of common stock (in dollars per share) | $ 0.04 |
Other Operating Expenses (Detai
Other Operating Expenses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Other Operating Expenses [Abstract] | |||
Amortization of gross deferred policy acquisition costs | $ 51,597 | $ 50,270 | $ 48,872 |
Other underwriting expenses | 41,692 | 42,638 | 37,830 |
Expense allowances from reinsurers | (33,512) | (28,956) | (23,797) |
Total underwriting expenses | 59,777 | 63,952 | 62,905 |
Operating expenses of non-insurance companies | 29,685 | 26,621 | 25,143 |
Total other operating expenses | 89,462 | 90,573 | $ 88,048 |
Director [Member] | |||
Consulting Contract [Abstract] | |||
Annual consulting contract fee | 300 | ||
Expenses incurred relating to consulting contract | 300 | 0 | |
Commission expense | $ 419 | $ 0 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - 401(k) Employee Savings and Profit Sharing Plan [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Requisite service period | 1 year | ||
Company's contribution to the plan | $ 2,449 | $ 2,090 | $ 1,798 |
Stock Purchase and Option Pla56
Stock Purchase and Option Plans (Details) $ / shares in Units, $ in Thousands | Feb. 08, 2017USD ($)$ / sharesshares | May 10, 2016$ / sharesshares | Feb. 05, 2016USD ($)$ / sharesshares | May 12, 2015$ / sharesshares | May 08, 2014$ / sharesshares | Dec. 31, 2016USD ($)DirectorPlanshares | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) |
Restricted Stock Units (RSUs) [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of share based compensation plans | Plan | 1 | |||||||
Restricted Stock Units (RSUs) [Member] | Outside Director [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Compensation cost charged against income | $ | $ 460 | $ 460 | $ 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 | $ 480 | $ 440 | |||||
Summary of stock Issuances [Abstract] | ||||||||
Number of shares issued (in shares) | 17,677 | 21,252 | 17,237 | |||||
Vesting Date | May 10, 2017 | May 12, 2016 | May 8, 2015 | |||||
Period | 7/1/2016 - 6/30/2017 | 7/1/2015 - 6/30/2016 | 7/1/2014 - 6/30/2015 | |||||
Value of each share issued on grant date (in dollars per share) | $ / shares | $ 24.89 | $ 22.59 | $ 25.53 | |||||
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) | 47,333 | |||||||
Total value of shares issued | $ | $ 1,103 | |||||||
Summary of stock Issuances [Abstract] | ||||||||
Value of each share issued on grant date (in dollars per share) | $ / shares | $ 23.30 | |||||||
Period restricted stocks will vest ratably from date of grant | 3 years | |||||||
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) | 20,181 | |||||||
Total value of shares issued | $ | $ 480 | |||||||
Summary of stock Issuances [Abstract] | ||||||||
Value of each share issued on grant date (in dollars per share) | $ / shares | $ 23.80 | |||||||
Period restricted stocks will vest ratably from date of grant | 3 years | |||||||
1981 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 | 90.00% | |||||||
Number of outside directors | Director | 2 | |||||||
1981 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) | 60,938 | |||||||
1981 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) | 240,938 |
Reportable Segments (Details)
Reportable Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Segment Reporting Information [Line Items] | |||||||||||
Net premiums earned | $ 69,141 | $ 71,235 | $ 68,726 | $ 66,909 | $ 65,995 | $ 65,445 | $ 65,449 | $ 66,446 | $ 276,011 | $ 263,335 | $ 261,627 |
Reconciliation from Segment Totals to Consolidated [Abstract] | |||||||||||
Net investment income | 14,483 | 12,498 | 9,055 | ||||||||
Income before federal income taxes | 43,054 | 33,952 | 44,398 | ||||||||
Reportable Segments [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Direct and assumed premium written | 403,004 | 383,553 | 382,388 | ||||||||
Net premiums earned | 276,011 | 263,335 | 261,627 | ||||||||
Segment underwriting gain (loss) | 4,225 | 22,775 | 18,368 | ||||||||
Reconciliation from Segment Totals to Consolidated [Abstract] | |||||||||||
Segment underwriting gain | 4,225 | 22,775 | 18,368 | ||||||||
Reportable Segments [Member] | Property and Casualty Insurance [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Direct and assumed premium written | 395,625 | 366,668 | 343,200 | ||||||||
Net premiums earned | 264,753 | 242,364 | 224,683 | ||||||||
Segment underwriting gain (loss) | 12,424 | 24,279 | 16,221 | ||||||||
Reconciliation from Segment Totals to Consolidated [Abstract] | |||||||||||
Segment underwriting gain | 12,424 | 24,279 | 16,221 | ||||||||
Reportable Segments [Member] | Reinsurance [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Direct and assumed premium written | 7,379 | 16,885 | 39,188 | ||||||||
Net premiums earned | 11,258 | 20,971 | 36,944 | ||||||||
Segment underwriting gain (loss) | (8,199) | (1,504) | 2,147 | ||||||||
Reconciliation from Segment Totals to Consolidated [Abstract] | |||||||||||
Segment underwriting gain | (8,199) | (1,504) | 2,147 | ||||||||
Segment Reconciling Items [Member] | |||||||||||
Reconciliation from Segment Totals to Consolidated [Abstract] | |||||||||||
Net investment income | 14,483 | 12,498 | 9,055 | ||||||||
Net realized gains (losses) on investments | 23,228 | (1,261) | 14,930 | ||||||||
Corporate and other income (expenses) | $ 1,118 | $ (60) | $ 2,045 |
Reportable Segments, Schedule o
Reportable Segments, Schedule of Revenue by Major Customers, by Reporting Segments (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016USD ($)SegmentCustomer | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Reportable Segments [Abstract] | |||
Number of reportable segments | Segment | 2 | ||
Property and Casualty Insurance [Member] | FedEx Ground, Certain Subsidiaries, and Related Entities [Member] | |||
Revenue, Major Customer [Line Items] | |||
Number of major customer | Customer | 1 | ||
Direct And Assumed Premiums Written | $ 18,347 | $ 17,773 | $ 18,951 |
Property and Casualty Insurance [Member] | Non-affiliated Broker on Behalf of Independent Contractors [Member] | |||
Revenue, Major Customer [Line Items] | |||
Direct And Assumed Premiums Written | $ 202,205 | $ 209,434 | $ 197,767 |
Earnings Per Share (Details)
Earnings Per Share (Details) - shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Reconciliation of the denominators used in the calculation of basic and diluted earnings per share [Abstract] | |||
Average shares outstanding for basic earnings per share (in shares) | 15,071,900 | 15,010,454 | 14,963,959 |
Dilutive effect of share equivalents (in shares) | 12,108 | 11,308 | 11,935 |
Average shares outstanding for diluted earnings per share (in shares) | 15,084,008 | 15,021,762 | 14,975,894 |
Concentrations of Credit Risk (
Concentrations of Credit Risk (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016USD ($)PartnershipDirector | Dec. 31, 2015USD ($) | |
Concentrations of Credit Risk [Abstract] | ||
Guarantor obligations, aggregate amount of collateral held | $ 257,095 | |
Collateral held that is equal to the ultimate losses that would be paid or due in the event of insured's default | 100.00% | |
Uncollateralized exposure as a percentage of shareholder's equity | 37.00% | |
Largest estimated amounts due from individual reinsurers, one | $ 40,335 | |
Second largest estimated amounts due from individual reinsurers, two | 27,131 | |
Aggregate estimated value in limited partnership | $ 44,038 | $ 45,009 |
Number of limited partnerships investment | Partnership | 3 | |
Number of directors that are executive officers, directors, and owners | Director | 4 |
Acquisition and related Goodw61
Acquisition and related Goodwill and Intangibles (Details) - Transportation Specialty Insurance Agency [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Business Acquisition [Line Items] | ||
Date of acquisition agreement | Oct. 31, 2008 | |
Cash purchase price | $ 3,500 | |
Recorded goodwill | 3,152 | |
Intangible assets acquired | 179 | |
Accumulated amortization on intangible assets | $ 179 | $ 179 |
Fair Value (Details)
Fair Value (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Fixed maturities [Abstract] | ||
Total fixed maturities | $ 491,904 | $ 437,184 |
Equity securities [Abstract] | ||
Total equity securities | 119,945 | 145,498 |
Recurring [Member] | ||
Fixed maturities [Abstract] | ||
Agency collateralized mortgage obligations | 6,171 | 0 |
Agency mortgage-backed securities | 4,770 | 3,157 |
Asset-backed securities | 45,183 | 44,309 |
Bank loans | 10,349 | 5,060 |
Certificates of deposit | 3,117 | 3,230 |
Collateralized mortgage obligations | 9,104 | 9,257 |
Corporate securities | 137,932 | 108,116 |
Options embedded in convertible securities | 4,751 | 2,395 |
Mortgage-backed securities | 24,571 | 23,892 |
Municipal obligations | 129,335 | 110,578 |
Non-U.S. government obligations | 24,681 | 23,945 |
U.S. government obligations | 91,940 | 103,245 |
Total fixed maturities | 491,904 | 437,184 |
Equity securities [Abstract] | ||
Consumer | 32,576 | 46,541 |
Energy | 12,842 | 8,635 |
Financial | 31,186 | 35,686 |
Industrial | 21,145 | 24,841 |
Technology | 8,858 | 11,596 |
Mutual fund | 6,995 | 9,983 |
Other | 6,343 | 8,216 |
Total equity securities | 119,945 | 145,498 |
Short term | 1,500 | 2,220 |
Cash equivalents | 59,683 | 69,517 |
Total fair value | 673,032 | 654,419 |
Recurring [Member] | Level 1 [Member] | ||
Fixed maturities [Abstract] | ||
Agency collateralized mortgage obligations | 0 | 0 |
Agency mortgage-backed securities | 0 | 0 |
Asset-backed securities | 0 | 0 |
Bank loans | 0 | 0 |
Certificates of deposit | 3,117 | 0 |
Collateralized mortgage obligations | 0 | 0 |
Corporate securities | 0 | 0 |
Options embedded in convertible securities | 0 | 0 |
Mortgage-backed securities | 0 | 0 |
Municipal obligations | 0 | 0 |
Non-U.S. government obligations | 0 | 0 |
U.S. government obligations | 0 | 0 |
Total fixed maturities | 3,117 | 0 |
Equity securities [Abstract] | ||
Consumer | 32,576 | 46,541 |
Energy | 12,842 | 8,635 |
Financial | 30,943 | 34,431 |
Industrial | 20,262 | 24,274 |
Technology | 8,858 | 11,596 |
Mutual fund | 0 | 0 |
Other | 6,343 | 8,216 |
Total equity securities | 111,824 | 133,693 |
Short term | 1,500 | 2,220 |
Cash equivalents | 0 | 0 |
Total fair value | 116,441 | 135,913 |
Recurring [Member] | Level 2 [Member] | ||
Fixed maturities [Abstract] | ||
Agency collateralized mortgage obligations | 6,171 | 0 |
Agency mortgage-backed securities | 4,770 | 3,157 |
Asset-backed securities | 37,919 | 37,235 |
Bank loans | 0 | 0 |
Certificates of deposit | 0 | 3,230 |
Collateralized mortgage obligations | 6,409 | 9,257 |
Corporate securities | 135,794 | 105,108 |
Options embedded in convertible securities | 4,751 | 2,395 |
Mortgage-backed securities | 22,206 | 22,523 |
Municipal obligations | 129,190 | 110,578 |
Non-U.S. government obligations | 24,419 | 23,663 |
U.S. government obligations | 91,940 | 103,245 |
Total fixed maturities | 463,569 | 420,391 |
Equity securities [Abstract] | ||
Consumer | 0 | 0 |
Energy | 0 | 0 |
Financial | 243 | 1,255 |
Industrial | 883 | 567 |
Technology | 0 | 0 |
Mutual fund | 6,995 | 9,983 |
Other | 0 | 0 |
Total equity securities | 8,121 | 11,805 |
Short term | 0 | 0 |
Cash equivalents | 59,683 | 69,517 |
Total fair value | 531,373 | 501,713 |
Recurring [Member] | Level 3 [Member] | ||
Fixed maturities [Abstract] | ||
Agency collateralized mortgage obligations | 0 | 0 |
Agency mortgage-backed securities | 0 | 0 |
Asset-backed securities | 7,264 | 7,074 |
Bank loans | 10,349 | 5,060 |
Certificates of deposit | 0 | 0 |
Collateralized mortgage obligations | 2,695 | 0 |
Corporate securities | 2,138 | 3,008 |
Options embedded in convertible securities | 0 | 0 |
Mortgage-backed securities | 2,365 | 1,369 |
Municipal obligations | 145 | 0 |
Non-U.S. government obligations | 262 | 282 |
U.S. government obligations | 0 | 0 |
Total fixed maturities | 25,218 | 16,793 |
Equity securities [Abstract] | ||
Consumer | 0 | 0 |
Energy | 0 | 0 |
Financial | 0 | 0 |
Industrial | 0 | 0 |
Technology | 0 | 0 |
Mutual fund | 0 | 0 |
Other | 0 | 0 |
Total equity securities | 0 | 0 |
Short term | 0 | 0 |
Cash equivalents | 0 | 0 |
Total fair value | $ 25,218 | $ 16,793 |
Fair Value, Unobservable Input
Fair Value, Unobservable Input Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Fair value assets measured on recurring basis unobservable input reconciliation calculation [Roll Forward] | ||
Beginning of period balance | $ 16,793 | $ 12,208 |
Total gains or losses (realized) included in income | 1,846 | (104) |
Purchases | 5,540 | 2,284 |
Settlements | (8,791) | (8,068) |
Transfers into Level 3 | 10,202 | 11,586 |
Transfers out of Level 3 | (372) | (1,113) |
End of period balance | $ 25,218 | $ 16,793 |
Fair Value, Balance Sheet Group
Fair Value, Balance Sheet Grouping (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Assets [Abstract] | ||
Limited partnerships | $ 76,469 | $ 75,458 |
Carrying Value [Member] | ||
Assets [Abstract] | ||
Limited partnerships | 76,469 | 75,458 |
Liabilities [Abstract] | ||
Short-term borrowings | 20,000 | 20,000 |
Fair Value [Member] | ||
Assets [Abstract] | ||
Limited partnerships | 76,469 | 75,458 |
Liabilities [Abstract] | ||
Short-term borrowings | 20,000 | 20,000 |
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 | 20,000 |
Fair Value [Member] | Level 3 [Member] | ||
Assets [Abstract] | ||
Limited partnerships | 76,469 | 75,458 |
Liabilities [Abstract] | ||
Short-term borrowings | $ 0 | $ 0 |
Quarterly Results of Operatio65
Quarterly Results of Operations (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Quarterly Results of Operations (Unaudited) [Abstract] | |||||||||||
Net premiums earned | $ 69,141 | $ 71,235 | $ 68,726 | $ 66,909 | $ 65,995 | $ 65,445 | $ 65,449 | $ 66,446 | $ 276,011 | $ 263,335 | $ 261,627 |
Net investment income | 3,982 | 3,513 | 3,549 | 3,440 | 3,771 | 3,014 | 2,898 | 2,815 | 14,483 | 12,498 | 9,055 |
Net gains (losses) on investments | 6,204 | 7,732 | 280 | 9,012 | (1,753) | (2,086) | (1,166) | 3,743 | |||
Losses and loss expenses incurred | 48,366 | 56,827 | 42,666 | 38,623 | 41,860 | 35,212 | 37,031 | 41,646 | 186,481 | 155,750 | 159,596 |
Net income | $ 4,864 | $ 4,001 | $ 5,969 | $ 14,112 | $ 3,541 | $ 7,780 | $ 5,718 | $ 6,243 | $ 28,945 | $ 23,283 | $ 29,717 |
Net income per share - diluted (in dollars per share) | $ 0.32 | $ 0.27 | $ 0.40 | $ 0.94 | $ 0.24 | $ 0.52 | $ 0.38 | $ 0.42 |
Statutory (Details)
Statutory (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statutory [Abstract] | |||
Net income (loss) of the insurance subsidiaries in accordance with statutory accounting practices | $ 31,647 | $ 25,627 | $ 27,143 |
Consolidated statutory capital and surplus for subsidiaries | 399,314 | $ 390,823 | |
Amount of statutory surplus transferred by dividend or loan to the parent company | 64,260 | ||
Minimum statutory surplus necessary for the insurance subsidiaries to satisfy statutory risk based capital requirements | 85,842 | ||
Consolidated statutory capital and surplus exceeded requirement | $ 313,473 |
Leases (Details)
Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Leases [Abstract] | |||
Lease expense | $ 157 | $ 175 | $ 330 |
Future lease payments for operating leases with initial or remaining noncancelable term of one year or more [Abstract] | |||
2,017 | 349 | ||
2,018 | 207 | ||
2,019 | 207 | ||
2020 & Thereafter | 10 | ||
Total minimum payments required | $ 773 |
Accumulated Other Comprehensi68
Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Investments [Abstract] | |||||||||||
Total unrealized gain before federal income taxes | $ 52,386 | $ 59,883 | $ 52,386 | $ 59,883 | |||||||
Deferred tax liability | (18,335) | (20,959) | (18,335) | (20,959) | |||||||
Net unrealized gains on investments | 34,051 | 38,924 | 34,051 | 38,924 | |||||||
Foreign exchange adjustment [Abstract] | |||||||||||
Total unrealized losses | (1,278) | (1,640) | (1,278) | (1,640) | |||||||
Deferred tax benefit | 447 | 574 | 447 | 574 | |||||||
Net unrealized losses on foreign exchange adjustment | (831) | (1,066) | (831) | (1,066) | |||||||
Accumulated other comprehensive income | 33,220 | 37,858 | 33,220 | 37,858 | |||||||
Investments [Abstract] | |||||||||||
Pre-tax holding gains (losses) on debt and equity securities arising during period | 13,259 | (19,445) | $ 12,055 | ||||||||
Less: applicable federal income taxes | 4,641 | (6,806) | 4,220 | ||||||||
Net unrealized gains on investments | 8,618 | (12,639) | 7,835 | ||||||||
Pre-tax gains on debt and equity securities included in net income during period | 20,755 | 426 | 7,823 | ||||||||
Less: applicable federal income taxes | 7,264 | 149 | 2,739 | ||||||||
Other comprehensive income (loss), reclassification adjustment for sale of securities included in net income, net of tax | 13,491 | 277 | 5,084 | ||||||||
Change in unrealized gains (losses) on investments | (4,873) | (12,916) | 2,751 | ||||||||
Reconciliation of Accumulated Other Comprehensive Income [Roll Forward] | |||||||||||
Shareholders' equity at beginning of year | $ 394,498 | $ 399,496 | 394,498 | 399,496 | 381,724 | ||||||
Change in foreign exchange adjustment | 235 | (1,456) | (1,011) | ||||||||
Change in unrealized net gains on investments | (4,873) | (12,916) | 2,751 | ||||||||
Shareholders' equity at end of year: | 404,345 | 394,498 | 404,345 | 394,498 | 399,496 | ||||||
Retained Earnings [Roll Forward] | |||||||||||
Beginning retained earnings | 303,053 | 294,773 | 303,053 | 294,773 | 280,003 | ||||||
Net income | 4,864 | $ 4,001 | $ 5,969 | 14,112 | 3,541 | $ 7,780 | $ 5,718 | 6,243 | 28,945 | 23,283 | 29,717 |
Dividends | (15,803) | (15,003) | (14,947) | ||||||||
Ending retained earnings | 316,195 | 303,053 | 316,195 | 303,053 | 294,773 | ||||||
AOCI Attributable to Parent [Member] | |||||||||||
Reconciliation of Accumulated Other Comprehensive Income [Roll Forward] | |||||||||||
Shareholders' equity at beginning of year | $ 37,858 | $ 52,230 | 37,858 | 52,230 | 50,490 | ||||||
Shareholders' equity at end of year: | $ 33,220 | $ 37,858 | $ 33,220 | $ 37,858 | $ 52,230 |
Debt (Details)
Debt (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Debt [Abstract] | ||
Revolving line of credit limit | $ 40,000 | |
Line of credit maturity date | Sep. 23, 2018 | |
Period of fixed interest on line of credit at company's options | 1 year | |
Outstanding drawings on line of credit | $ 20,000 | $ 20,000 |
Effective interest rate | 1.86% | |
Remaining unused amount under line of credit | $ 20,000 |
SCHEDULE I -SUMMARY OF INVEST70
SCHEDULE I -SUMMARY OF INVESTMENTS-OTHER THAN INVESTMENTS IN RELATED PARTIES (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |||
Cost | $ 494,561 | $ 442,578 | |
Amount at which shown in the balance sheet | 719 | ||
Money markets fund classified with cash and cash equivalents | 49,145 | ||
Total Investments [Member] | |||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |||
Cost | 593,394 | ||
Fair value | 645,780 | ||
Amount at which shown in the balance sheet | [1] | 645,780 | |
Limited Partnership [Member] | |||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |||
Cost | 32,431 | ||
Fair value | 32,431 | ||
Amount at which shown in the balance sheet | [1] | 32,431 | |
Bonds [Member] | Total Fixed Maturities [Member] | |||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |||
Cost | 494,561 | ||
Fair value | 491,904 | ||
Amount at which shown in the balance sheet | [1] | 491,904 | |
Bonds [Member] | Agency Collateralized Mortgage Obligations [Member] | |||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |||
Cost | 6,000 | ||
Fair value | 6,171 | ||
Amount at which shown in the balance sheet | [1] | 6,171 | |
Bonds [Member] | Agency Mortgage Backed Securities [Member] | |||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |||
Cost | 4,751 | ||
Fair value | 4,770 | ||
Amount at which shown in the balance sheet | [1] | 4,770 | |
Bonds [Member] | Asset-backed Securities [Member] | |||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |||
Cost | 45,207 | ||
Fair value | 45,183 | ||
Amount at which shown in the balance sheet | [1] | 45,183 | |
Bonds [Member] | Bank Loans [Member] | |||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |||
Cost | 10,222 | ||
Fair value | 10,349 | ||
Amount at which shown in the balance sheet | [1] | 10,349 | |
Bonds [Member] | Certificates of Deposit [Member] | |||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |||
Cost | 3,126 | ||
Fair value | 3,117 | ||
Amount at which shown in the balance sheet | [1] | 3,117 | |
Bonds [Member] | Collateralized Mortgage Obligations [Member] | |||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |||
Cost | 9,096 | ||
Fair value | 9,104 | ||
Amount at which shown in the balance sheet | [1] | 9,104 | |
Bonds [Member] | Corporate Securities [Member] | |||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |||
Cost | 143,356 | ||
Fair value | 142,683 | ||
Amount at which shown in the balance sheet | [1] | 142,683 | |
Bonds [Member] | Mortgage-backed Securities [Member] | |||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |||
Cost | 23,904 | ||
Fair value | 24,571 | ||
Amount at which shown in the balance sheet | [1] | 24,571 | |
Bonds [Member] | Municipal Obligations [Member] | |||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |||
Cost | 130,204 | ||
Fair value | 129,335 | ||
Amount at which shown in the balance sheet | [1] | 129,335 | |
Bonds [Member] | Non-U.S. Government Obligations [Member] | |||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |||
Cost | 26,461 | ||
Fair value | 24,681 | ||
Amount at which shown in the balance sheet | [1] | 24,681 | |
Bonds [Member] | U.S Government Obligations [Member] | |||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |||
Cost | 92,234 | ||
Fair value | 91,940 | ||
Amount at which shown in the balance sheet | [1] | 91,940 | |
Common Stocks [Member] | Total Equity Securities [Member] | |||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |||
Cost | 64,902 | ||
Fair value | 119,945 | ||
Amount at which shown in the balance sheet | [1] | 119,945 | |
Common Stocks [Member] | Consumer [Member] | |||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |||
Cost | 15,231 | ||
Fair value | 32,576 | ||
Amount at which shown in the balance sheet | [1] | 32,576 | |
Common Stocks [Member] | Energy [Member] | |||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |||
Cost | 5,641 | ||
Fair value | 12,842 | ||
Amount at which shown in the balance sheet | [1] | 12,842 | |
Common Stocks [Member] | Financial [Member] | |||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |||
Cost | 22,417 | ||
Fair value | 31,186 | ||
Amount at which shown in the balance sheet | [1] | 31,186 | |
Common Stocks [Member] | Industrial [Member] | |||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |||
Cost | 6,239 | ||
Fair value | 21,145 | ||
Amount at which shown in the balance sheet | [1] | 21,145 | |
Common Stocks [Member] | Technology [Member] | |||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |||
Cost | 4,117 | ||
Fair value | 8,858 | ||
Amount at which shown in the balance sheet | [1] | 8,858 | |
Common Stocks [Member] | Mutual Fund [Member] | |||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |||
Cost | 6,930 | ||
Fair value | 6,995 | ||
Amount at which shown in the balance sheet | [1] | 6,995 | |
Common Stocks [Member] | Other [Member] | |||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |||
Cost | 4,327 | ||
Fair value | 6,343 | ||
Amount at which shown in the balance sheet | [1] | 6,343 | |
Short-term [Member] | Total Short-term and Other [Member] | |||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |||
Cost | 1,500 | ||
Fair value | 1,500 | ||
Amount at which shown in the balance sheet | [1] | 1,500 | |
Short-term [Member] | Certificates of Deposit [Member] | |||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |||
Cost | 1,500 | ||
Fair value | 1,500 | ||
Amount at which shown in the balance sheet | [1] | $ 1,500 | |
[1] | Investments presented above do not include $49,145 of money market funds classified with cash and cash equivalents in the balance sheet. |
SCHEDULE II CONDENSED FINANCI71
SCHEDULE II CONDENSED FINANCIAL INFORMATION OF REGISTRANT (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Investments other than subsidiaries [Abstract] | |||||||||||||||
Fixed maturities | $ 491,904 | $ 437,184 | |||||||||||||
Limited partnerships | 76,469 | 75,458 | |||||||||||||
Total Investments | 689,818 | 660,360 | |||||||||||||
Cash and cash equivalents | $ 62,976 | $ 73,538 | $ 73,538 | $ 64,632 | $ 62,976 | $ 73,538 | $ 64,632 | 62,976 | 73,538 | $ 64,632 | $ 59,297 | ||||
Accounts receivable | 64,984 | 66,522 | |||||||||||||
Other assets | 23,779 | 11,009 | |||||||||||||
Total Assets | 1,154,137 | 1,085,771 | |||||||||||||
Liabilities [Abstract] | |||||||||||||||
Total Liabilities | 749,792 | 691,273 | |||||||||||||
Shareholders' equity [Abstract] | |||||||||||||||
Additional paid-in capital | 54,286 | 52,946 | |||||||||||||
Unrealized net gains on investments | 34,051 | 38,924 | |||||||||||||
Foreign exchange adjustment | (831) | (1,066) | |||||||||||||
Retained earnings | 316,195 | 303,053 | 294,773 | 280,003 | |||||||||||
Shareholders' equity | 404,345 | 394,498 | 399,496 | 381,724 | |||||||||||
Total liabilities and shareholders' equity | 1,154,137 | 1,085,771 | |||||||||||||
Revenue [Abstract] | |||||||||||||||
Net investment income | 3,982 | $ 3,513 | $ 3,549 | 3,440 | 3,771 | $ 3,014 | $ 2,898 | 2,815 | 14,483 | 12,498 | 9,055 | ||||
Net realized losses on investments | 23,228 | (1,261) | 14,930 | ||||||||||||
Total revenue | 318,997 | 280,275 | 292,042 | ||||||||||||
Expenses [Abstract] | |||||||||||||||
Other | 89,462 | 90,573 | 88,048 | ||||||||||||
Total expenses | 275,943 | 246,323 | 247,644 | ||||||||||||
Income before federal income taxes and equity in undistributed income of subsidiaries | 43,054 | 33,952 | 44,398 | ||||||||||||
Federal income tax benefit | 14,109 | 10,669 | 14,681 | ||||||||||||
Equity in undistributed income of subsidiaries | 2,473 | (1,687) | 7,108 | ||||||||||||
Net income | 4,864 | $ 4,001 | $ 5,969 | 14,112 | 3,541 | $ 7,780 | $ 5,718 | 6,243 | 28,945 | 23,283 | 29,717 | ||||
Condensed Statements of Cash Flows [Abstract] | |||||||||||||||
Net cash provided by operating activities | 32,368 | 38,197 | 30,160 | ||||||||||||
Investing activities [Abstract] | |||||||||||||||
Net sales of short-term investments | 11,258 | 746 | 1,925 | ||||||||||||
Distributions from limited partnerships | 1,462 | 4,494 | 1,752 | ||||||||||||
Net cash used in investing activities | (27,362) | (12,832) | (18,867) | ||||||||||||
Financing activities [Abstract] | |||||||||||||||
Dividends paid to shareholders | (15,803) | (15,003) | (14,947) | ||||||||||||
Net cash used in financing activities | (15,803) | (15,003) | (4,947) | ||||||||||||
Increase (decrease) in cash and cash equivalents | (10,562) | 8,906 | 5,335 | ||||||||||||
Cash and cash equivalents at beginning of year | 73,538 | 64,632 | 73,538 | 64,632 | 59,297 | ||||||||||
Cash and cash equivalents at end of year | 62,976 | 73,538 | 62,976 | 73,538 | 64,632 | ||||||||||
Class A [Member] | |||||||||||||||
Shareholders' equity [Abstract] | |||||||||||||||
Common stock | 112 | 112 | |||||||||||||
Class B [Member] | |||||||||||||||
Shareholders' equity [Abstract] | |||||||||||||||
Common stock | 532 | 529 | |||||||||||||
Parent Company [Member] | |||||||||||||||
Assets [Abstract] | |||||||||||||||
Investment in subsidiaries | 409,892 | 405,192 | |||||||||||||
Due from affiliates | 3,381 | 2,945 | |||||||||||||
Investments other than subsidiaries [Abstract] | |||||||||||||||
Fixed maturities | 10,166 | 12,181 | |||||||||||||
Limited partnerships | 205 | 208 | |||||||||||||
Total Investments | 10,371 | 12,389 | |||||||||||||
Cash and cash equivalents | 14,995 | 17,934 | 17,934 | 16,615 | 17,934 | 17,934 | 16,615 | 14,995 | 17,934 | $ 16,615 | $ 9,848 | ||||
Accounts receivable | 7,602 | 6,418 | |||||||||||||
Other assets | 25,763 | 21,067 | |||||||||||||
Total Assets | 472,004 | 465,945 | |||||||||||||
Liabilities [Abstract] | |||||||||||||||
Premiums payable | 11,973 | 21,672 | |||||||||||||
Deposits from insureds | 30,087 | 23,484 | |||||||||||||
Short-term borrownings | 20,000 | 20,000 | |||||||||||||
Other liabilities | 5,599 | 6,291 | |||||||||||||
Total Liabilities | 67,659 | 71,447 | |||||||||||||
Shareholders' equity [Abstract] | |||||||||||||||
Additional paid-in capital | 54,286 | 52,946 | |||||||||||||
Unrealized net gains on investments | 34,051 | 38,924 | |||||||||||||
Foreign exchange adjustment | (831) | (1,066) | |||||||||||||
Retained earnings | 316,195 | 303,053 | |||||||||||||
Shareholders' equity | 404,345 | 394,498 | |||||||||||||
Total liabilities and shareholders' equity | 472,004 | 465,945 | |||||||||||||
Revenue [Abstract] | |||||||||||||||
Commissions and service fees | 27,736 | 23,523 | 22,153 | ||||||||||||
Cash dividends from subsidiaries | 20,000 | 20,000 | 15,000 | ||||||||||||
Net investment income | 134 | 120 | 102 | ||||||||||||
Net realized losses on investments | (3) | (22) | (27) | ||||||||||||
Other | (24) | (17) | 126 | ||||||||||||
Total revenue | 47,843 | 43,604 | 37,354 | ||||||||||||
Expenses [Abstract] | |||||||||||||||
Salary and related items | 17,462 | 17,616 | 15,543 | ||||||||||||
Other | 10,808 | 7,297 | 7,978 | ||||||||||||
Total expenses | 28,270 | 24,913 | 23,521 | ||||||||||||
Income before federal income taxes and equity in undistributed income of subsidiaries | 19,573 | 18,691 | 13,833 | ||||||||||||
Federal income tax benefit | (69) | (350) | (294) | ||||||||||||
Income before equity in undistributed income of subsidiaries | 19,642 | 19,041 | 14,127 | ||||||||||||
Equity in undistributed income of subsidiaries | 9,303 | 4,242 | 15,590 | ||||||||||||
Net income | 28,945 | 23,283 | 29,717 | ||||||||||||
Condensed Statements of Cash Flows [Abstract] | |||||||||||||||
Net cash provided by operating activities | 15,484 | 21,841 | 19,719 | ||||||||||||
Investing activities [Abstract] | |||||||||||||||
Purchases of long-term investments | (4,000) | (4,792) | (6,398) | ||||||||||||
Sales or maturities of long-term investments | 3,493 | 4,194 | 5,253 | ||||||||||||
Net sales of short-term investments | 2,165 | 0 | 0 | ||||||||||||
Distributions from limited partnerships | 0 | 0 | 13 | ||||||||||||
Net purchases of property and equipment | (4,278) | (4,921) | (6,873) | ||||||||||||
Net cash used in investing activities | (2,620) | (5,519) | (8,005) | ||||||||||||
Financing activities [Abstract] | |||||||||||||||
Dividends paid to shareholders | (15,803) | (15,003) | (14,947) | ||||||||||||
Drawings on line of credit | 0 | 0 | 10,000 | ||||||||||||
Net cash used in financing activities | (15,803) | (15,003) | (4,947) | ||||||||||||
Increase (decrease) in cash and cash equivalents | (2,939) | 1,319 | 6,767 | ||||||||||||
Cash and cash equivalents at beginning of year | $ 17,934 | $ 16,615 | 17,934 | 16,615 | 9,848 | ||||||||||
Cash and cash equivalents at end of year | $ 14,995 | $ 17,934 | $ 14,995 | $ 17,934 | $ 16,615 | ||||||||||
Parent Company [Member] | Class A [Member] | |||||||||||||||
Shareholders' equity [Abstract] | |||||||||||||||
Common stock | 112 | 112 | |||||||||||||
Parent Company [Member] | Class B [Member] | |||||||||||||||
Shareholders' equity [Abstract] | |||||||||||||||
Common stock | $ 532 | $ 529 |
SCHEDULE III SUPPLEMENTARY IN72
SCHEDULE III SUPPLEMENTARY INSURANCE INFORMATION (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Property and Casualty Insurance [Member] | ||||
Supplementary Insurance Information, by Segment [Line Items] | ||||
Deferred Policy Acquisition Costs | $ 1,172 | $ 1,443 | $ 2,263 | |
Reserves for Unpaid Claims and Claim Adjustment Expenses | 531,008 | 464,305 | 449,133 | |
Unearned Premiums | 18,947 | 18,579 | 23,659 | |
Other Policy Claims and Benefits Payable | 0 | 0 | 0 | |
Net Premium Earned | 264,753 | 242,364 | 224,683 | |
Net Investment Income | [1] | 14,483 | 12,498 | 9,055 |
Benefits, Claims, Losses and Settlement Expenses | [2] | 171,735 | 142,258 | 139,308 |
Amortization of Deferred Policy Acquisition Costs | 51,597 | 50,270 | 48,872 | |
Other Operating Expenses | [1],[3] | 8,180 | 13,682 | 14,033 |
Net Premiums Written | 264,459 | 238,330 | 224,258 | |
Reinsurance [Member] | ||||
Supplementary Insurance Information, by Segment [Line Items] | ||||
Deferred Policy Acquisition Costs | 0 | 0 | 0 | |
Reserves for Unpaid Claims and Claim Adjustment Expenses | 45,322 | 49,291 | 56,969 | |
Unearned Premiums | 2,747 | 6,712 | 11,360 | |
Other Policy Claims and Benefits Payable | 0 | 0 | 0 | |
Net Premium Earned | 11,258 | 20,971 | 36,944 | |
Net Investment Income | [1] | 14,483 | 12,498 | 9,055 |
Benefits, Claims, Losses and Settlement Expenses | [2] | 14,746 | 13,492 | 20,288 |
Amortization of Deferred Policy Acquisition Costs | 0 | 0 | 0 | |
Other Operating Expenses | [1],[3] | 8,180 | 13,682 | 14,033 |
Net Premiums Written | $ 7,293 | $ 16,323 | $ 37,913 | |
[1] | Amounts are not broken down into separate segments; entire consolidated amount included in each segment. | |||
[2] | 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. | |||
[3] | Commission allowances relating to reinsurance ceded are offset against other operating expenses. |
SCHEDULE IV - REINSURANCE (Deta
SCHEDULE IV - REINSURANCE (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||||||||||
Direct Premiums | $ 394,679 | $ 370,499 | $ 342,656 | ||||||||
Ceded to Other Companies | 86 | 562 | 1,275 | ||||||||
Assumed from Other Companies | 11,344 | 21,533 | 38,219 | ||||||||
Net | $ 69,141 | $ 71,235 | $ 68,726 | $ 66,909 | $ 65,995 | $ 65,445 | $ 65,449 | $ 66,446 | 276,011 | 263,335 | 261,627 |
Retrocessions associated with premiums assumed from other companies | 86 | 562 | 1,275 | ||||||||
Property and Casualty Insurance [Member] | |||||||||||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||||||||||
Direct Premiums | 394,679 | 370,499 | 342,656 | ||||||||
Ceded to Other Companies | 130,012 | 128,697 | 119,248 | ||||||||
Assumed from Other Companies | 11,344 | 21,533 | 38,219 | ||||||||
Net | $ 276,011 | $ 263,335 | $ 261,627 | ||||||||
% of Amount Assumed to Net | 4.10% | 8.00% | 14.10% |
SCHEDULE VI SUPPLEMENTAL INFO74
SCHEDULE VI SUPPLEMENTAL INFORMATION CONCERNING PROPERTY/CASUALTY INSURANCE OPERATIONS (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Supplemental Information for Property, Casualty Insurance Underwriters [Line Items] | ||||
Deferred Policy Acquisition Costs | $ 1,172 | $ 1,443 | $ 2,263 | |
Reserves for Unpaid Claims and Claim Adjustment Expenses | 576,330 | 513,596 | 506,102 | |
Discount if any Deducted in Column C | [1] | 0 | 2,110 | 3,129 |
Unearned Premiums | 21,694 | 25,291 | 35,019 | |
Earned Premiums | 276,011 | 263,335 | 261,627 | |
Net Investment Income | 14,483 | 12,498 | 9,055 | |
Claims and Claim Adjustment Expenses Incurred Related to Current Year | 172,645 | 165,812 | 169,950 | |
Claims and Claim Adjustment Expenses Incurred Related to Prior Years | 13,836 | (10,062) | (10,354) | |
Amortization of Deferred Policy Acquisition Costs | 51,597 | 50,270 | 48,872 | |
Paid Claims and Claim Adjustment Expenses | 163,467 | 149,580 | 152,101 | |
Net Premiums Written | $ 271,752 | $ 254,653 | $ 262,171 | |
Loss reserve discounted present value cash flow pretax interest rate utilized | 3.50% | 3.50% | ||
[1] | (A) Loss reserves on certain reinsurance assumed and permanent total disability workers' compensation claims have been disco unted to present value using pretax interest rates not exceeding 3.5% through 2015. |