Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2021 | May 04, 2021 | |
Entity Information [Line Items] | ||
Entity Registrant Name | PROTECTIVE INSURANCE CORPORATION | |
Entity Central Index Key | 0000009346 | |
Current Fiscal Year End Date | --12-31 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2021 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 0-5534 | |
Entity Incorporation, State or Country Code | IN | |
Entity Tax Identification Number | 35-0160330 | |
Entity Address, Address Line One | 111 Congressional Boulevard | |
Entity Address, City or Town | Carmel | |
Entity Address, State or Province | IN | |
Entity Address, Postal Zip Code | 46032 | |
City Area Code | 317 | |
Local Phone Number | 636-9800 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 14,156,151 | |
Common Class A (voting) [Member] | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Common Stock, No Par Value | |
Trading Symbol | PTVCA | |
Security Exchange Name | NASDAQ | |
Entity Common Stock, Shares Outstanding | 2,603,350 | |
Common Class B (non-voting) [Member] | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Common Stock, No Par Value | |
Trading Symbol | PTVCB | |
Security Exchange Name | NASDAQ | |
Entity Common Stock, Shares Outstanding | 11,552,801 |
Unaudited Condensed Consolidate
Unaudited Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Investments: | ||
Fixed income securities (less allowance for credit losses of $825 and $1,035) | $ 914,949 | $ 919,692 |
Equity securities | 67,015 | 58,169 |
Limited partnerships | 7,476 | 7,214 |
Commercial mortgage loans (less allowance of $195 and $195) | 10,866 | 10,602 |
Short-term and other | 1,000 | 1,000 |
Total Investments | 1,001,306 | 996,677 |
Cash and cash equivalents | 95,566 | 58,301 |
Restricted cash and cash equivalents | 11,538 | 12,128 |
Accounts receivable (less allowance of $19,960 and $19,960) | 96,200 | 100,921 |
Reinsurance recoverable (less allowance of $987 and $972) | 455,462 | 455,564 |
Other assets | 91,839 | 90,256 |
Deferred federal income taxes | 10,764 | 8,980 |
Total Assets | 1,762,675 | 1,722,827 |
Liabilities and shareholders' equity | ||
Reserves for losses and loss expenses | 1,108,132 | 1,089,669 |
Reserves for unearned premiums | 59,049 | 63,731 |
Reinsurance payable | 75,898 | 76,617 |
Short-term borrowings | 20,000 | 20,000 |
Accounts payable and other liabilities | 129,367 | 108,962 |
Current federal income taxes | 3,551 | 766 |
Total Liabilities | 1,395,997 | 1,359,745 |
Shareholders' equity: | ||
Additional paid-in capital | 55,645 | 54,571 |
Accumulated other comprehensive income | 12,766 | 21,759 |
Retained earnings | 297,657 | 286,143 |
Total Shareholders' Equity | 366,678 | 363,082 |
Total Liabilities and Shareholders' Equity | 1,762,675 | 1,722,827 |
Class A Voting [Member] | ||
Shareholders' equity: | ||
Common stock | 111 | 111 |
Class B Non-voting [Member] | ||
Shareholders' equity: | ||
Common stock | $ 499 | $ 498 |
Unaudited Condensed Consolida_2
Unaudited Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Assets | ||
Fixed income securities, allowance for credit loses | $ 825 | $ 1,035 |
Commercial mortgage loans, allowance | 195 | 195 |
Account receivable, allowance | 19,960 | 19,960 |
Reinsurance recoverable, allowance | $ 987 | $ 972 |
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) | 2,603,350 | 2,603,350 |
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) | 11,705,070 | 11,674,345 |
Unaudited Condensed Consolida_3
Unaudited Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Revenues | ||
Net premiums earned | $ 122,853 | $ 109,659 |
Net investment income | 5,306 | 7,236 |
Commissions and other income | 1,858 | 1,663 |
Net realized gains (losses) on investments, excluding impairment losses | 2,339 | (4,787) |
Impairment losses on investments | (82) | (40) |
Net unrealized gains (losses) on equity securities and limited partnership investments | 8,252 | (22,929) |
Net realized and unrealized gains (losses) on investments | 10,509 | (27,756) |
Total revenues | 140,526 | 90,802 |
Expenses | ||
Losses and loss expenses incurred | 82,318 | 81,831 |
Other operating expenses | 41,855 | 34,110 |
Total expenses | 124,173 | 115,941 |
Income (loss) before federal income tax expense (benefit) | 16,353 | (25,139) |
Federal income tax expense (benefit) | 3,415 | (2,983) |
Net income (loss) | $ 12,938 | $ (22,156) |
Net income (loss) per share: | ||
Basic (in dollars per share) | $ 0.91 | $ (1.56) |
Diluted (in dollars per share) | $ 0.90 | $ (1.56) |
Weighted average number of shares outstanding: | ||
Basic (in shares) | 14,153 | 14,169 |
Dilutive effect of share equivalents (in shares) | 154 | |
Diluted (in shares) | 14,307 | 14,169 |
Unaudited Condensed Consolida_4
Unaudited Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Unaudited Condensed Consolidated Statements of Comprehensive Income (Loss) [Abstract] | ||
Net income (loss) | $ 12,938 | $ (22,156) |
Other comprehensive loss, net of tax: | ||
Net unrealized losses on fixed income securities | (9,081) | (20,861) |
Foreign currency translation adjustments | 88 | (687) |
Other comprehensive loss | (8,993) | (21,548) |
Comprehensive income (loss) | $ 3,945 | $ (43,704) |
Unaudited Condensed Consolida_5
Unaudited Condensed Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Retained Earnings [Member] | Total | Class A [Member]Common Stock [Member] | Class B [Member]Common Stock [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member]Additional Paid-in Capital [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member]Accumulated Other Comprehensive Income (Loss) [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member]Retained Earnings [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member]Class A [Member]Common Stock [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member]Class B [Member]Common Stock [Member] |
Beginning balance at December 31, 2020 at Dec. 31, 2019 | $ 53,349 | $ 9,369 | $ 300,988 | $ 364,316 | $ 111 | $ 499 | ||||||
Beginning balance at December 31, 2020 (ASU 2016-13 [Member]) at Dec. 31, 2019 | $ 0 | $ 0 | $ (12,281) | $ (12,281) | $ 0 | $ 0 | ||||||
Beginning balance (in shares) at Dec. 31, 2019 | 2,603,000 | 11,676,000 | ||||||||||
Beginning balance (in shares) (ASU 2016-13 [Member]) at Dec. 31, 2019 | 0 | 0 | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net loss (income) | 0 | 0 | (22,156) | (22,156) | $ 0 | $ 0 | ||||||
Foreign currency translation adjustment, net of tax | 0 | (687) | 0 | (687) | 0 | 0 | ||||||
Change in unrealized gains (losses) on investments, net of tax | 0 | (20,861) | 0 | (20,861) | 0 | 0 | ||||||
Common stock dividends | 0 | 0 | (1,426) | (1,426) | 0 | 0 | ||||||
Repurchase of common shares | (563) | 0 | (1,214) | (1,782) | $ 0 | $ (5) | ||||||
Repurchase of common shares (in shares) | 0 | (127,000) | ||||||||||
Restricted stock grants | 259 | 0 | 0 | 260 | $ 0 | $ 1 | ||||||
Restricted stock grants (in shares) | 0 | 31,000 | ||||||||||
Ending balance at Mar. 31, 2020 | 53,045 | (12,179) | 263,911 | 305,383 | $ 111 | $ 495 | ||||||
Ending balance (in shares) at Mar. 31, 2020 | 2,603,000 | 11,580,000 | ||||||||||
Beginning balance at December 31, 2020 at Dec. 31, 2020 | 54,571 | 21,759 | 286,143 | 363,082 | $ 111 | $ 498 | ||||||
Beginning balance (in shares) at Dec. 31, 2020 | 2,603,000 | 11,675,000 | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net loss (income) | 12,938 | 12,938 | ||||||||||
Foreign currency translation adjustment, net of tax | 88 | 88 | ||||||||||
Change in unrealized gains (losses) on investments, net of tax | (9,081) | (9,081) | ||||||||||
Common stock dividends | (1,424) | $ (1,424) | ||||||||||
Repurchase of common shares (in shares) | 0 | |||||||||||
Restricted stock grants | 1,074 | $ 1,075 | $ 1 | |||||||||
Restricted stock grants (in shares) | 30,000 | |||||||||||
Ending balance at Mar. 31, 2021 | $ 55,645 | $ 12,766 | $ 297,657 | $ 366,678 | $ 111 | $ 499 | ||||||
Ending balance (in shares) at Mar. 31, 2021 | 2,603,000 | 11,705,000 |
Unaudited Condensed Consolida_6
Unaudited Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Operating activities | ||
Net income (loss) | $ 12,938 | $ (22,156) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities | 7,973 | 20,844 |
Net cash provided by (used in) operating activities | 20,911 | (1,312) |
Investing activities | ||
Purchases of fixed income and equity securities | (92,719) | (82,641) |
Distributions from limited partnerships | 186 | 14,636 |
Proceeds from maturities of fixed income securities | 64,453 | 31,088 |
Proceeds from sales of fixed income securities | 44,427 | 48,552 |
Proceeds from sales of equity securities | 2,064 | 5,480 |
Purchase of commercial mortgage loans | (319) | (368) |
Proceeds from commercial mortgage loans | 54 | 72 |
Purchases of property and equipment | (1,046) | (369) |
Net cash provided by investing activities | 17,100 | 16,450 |
Financing activities | ||
Dividends paid to shareholders | (1,424) | (1,426) |
Repurchase of common shock | 0 | (1,782) |
Net cash used in financing activities | (1,424) | (3,208) |
Effect of foreign exchange rates on cash and cash equivalents | 88 | (687) |
Increase in cash, cash equivalents and restricted cash and cash equivalents | 36,675 | 11,243 |
Cash, cash equivalents and restricted cash and cash equivalents at beginning of period | 70,429 | 88,888 |
Cash, cash equivalents and restricted cash and cash equivalents at end of period | $ 107,104 | $ 100,131 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2021 | |
Summary of Significant Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | (1) Summary of Significant Accounting Policies: Description of Business: The term “Insurance Subsidiaries,” as used throughout this document, refers to Protective Insurance Company, Protective Specialty Insurance Company, Sagamore Insurance Company and B&L Insurance, Ltd. Proposed Merger with The Progressive Corporation Merger Agreement On February 14, 2021, the Company entered into an Agreement and Plan of Merger (the “Merger Agreement”) with The Progressive Corporation, an Ohio corporation (“Progressive”), and Carnation Merger Sub Inc., an Indiana corporation and wholly-owned indirect subsidiary of Progressive (“Merger Sub”). The Merger Agreement provides for, subject to the satisfaction or waiver of specified conditions, the merger of Merger Sub with and into the Company (the “Merger”), whereupon the separate existence of Merger Sub will cease and Protective will continue as the surviving corporation and as a wholly-owned indirect subsidiary of Progressive. The Company's Board of Directors (the "Board"), at the unanimous recommendation of the Special Committee of the Board, unanimously determined that the Merger Agreement and the transactions contemplated thereby, including the Merger, are advisable and fair to, and in the best interests of, the Company and its shareholders, and approved, adopted and declared advisable the Merger Agreement and the transactions contemplated thereby. The Merger is expected to close in June or July of 2021. At the effective time of the Merger, each issued and outstanding share of common stock, without par value, of the Company (other than each share of the Company’s common stock that is owned by the Company as treasury stock or by any subsidiary of the Company and each share of the Company’s common stock owned by Progressive, Merger Sub or any other subsidiary of Progressive immediately prior to the effective time of the Merger) will be automatically canceled and converted into the right to receive $23.30 in cash, without interest, for a total transaction value of approximately $338 million. The Merger Agreement contains various customary representations and warranties from each of the Company, Progressive and Merger Sub. The Company has also agreed to various customary covenants, including but not limited to conducting its business in the ordinary course and not engaging in certain types of transactions during the period between the execution of the Merger Agreement and the closing of the Merger. However, the Merger Agreement permits the Company to continue to pay regular quarterly dividends not to exceed $ per share of the Company’s common stock. The Hart-Scott-Rodino Antitrust Improvements Act of 1976 waiting period expired April 5, 2021. Voting and Support Agreement On February 14, 2021, the Company also entered into a Voting and Support Agreement (the “Voting Agreement”) with Progressive and certain of the Company's shareholders. The Voting Agreement required that the Company shareholders party to the Voting Agreement: (i) appear at the meeting of the holders of the Company's Class A common stock held on May 5, 2021 to consider resolutions to approve the Merger Agreement and the Merger or otherwise cause their shares of the Company's common stock to be counted as present for purposes of calculating a quorum, and (ii) vote their shares (a) in favor of the adoption of the Merger Agreement, the Merger and the other transactions contemplated thereby and any action reasonably requested by Progressive or the Board in furtherance of the foregoing, (b) against any action or agreement that would result in a material breach of any covenant, representation or warranty or other obligation or agreement of the Company contained in the Merger Agreement and (c) against any takeover proposal or superior proposal (provided, that if the Board had changed its recommendation with respect to the Merger, any shares of Class A common stock owned by such shareholders in excess of approximately 35% of the outstanding shares of Class A common stock would have been voted in the same proportion as those shares of Class A common stock voted by the holders of the Company’s Class A common stock that are not party to the Voting Agreement). The Company shareholders party to the Voting Agreement voted their shares in favor of the Merger Agreement and the Merger at the special meeting of the Company's shareholders held on May 5, 2021, in accordance with the terms of the Voting Agreement. There can be no assurance that the Merger will occur or, if it does occur, of its terms or timing. For additional information regarding the risks associated with the Merger, please see Part II, Item 1A, "Risk Factors," of this Quarterly Report on Form 10-Q and Part I, Item 1A, " Risk Factors Basis of Presentation: Accounting Policies Investments : Commercial mortgage loans are carried primarily at amortized cost along with an allowance for losses when necessary. These investments represent interests in commercial mortgage loans originated and serviced by a third party of which the Company shares, on a pro-rata basis, in all related cash flows of the underlying mortgage loans. The Company recorded an allowance of $195 on its commercial mortgage loans as of March 31, 2021 and December 31, 2020. The Company accounts for investments in limited partnerships using the equity method of accounting, which requires an investor in a limited partnership to record its proportionate share of the limited partnership's net income. To the extent the limited partnerships include both realized and unrealized investment gains or losses in the determination of net income or loss, then the Company would also recognize, through its condensed consolidated statements of operations, its proportionate share of the investee's unrealized, as well as realized, investment gains or losses within net unrealized gains (losses) on equity securities and limited partnership investments. Short-term and other investments are carried at cost, which approximates their fair values. Fixed income securities are considered to be available-for-sale. The related unrealized net gains or losses (net of applicable tax effects) on fixed income securities are reflected directly in other comprehensive income (loss) within shareholders' equity. Included within available-for-sale fixed income securities are convertible debt securities. A portion of the changes in the fair values of convertible debt securities is reflected as a component of net realized gains (losses) on investments, excluding impairment losses within the condensed consolidated statements of operations. Realized gains and losses on disposals of fixed income securities are recorded on the trade date. Realized gains and losses on fixed income securities are determined by the specific identification of the cost of investments sold and are included in net realized gains (losses) on investments, excluding impairment losses. Equity securities are recorded at fair value, with unrealized net gains or losses reflected as a component of net unrealized gains (losses) on equity securities and limited partnership investments within the condensed consolidated statements of operations. Realized gains and losses on disposals of equity securities are recorded on the trade date and included in net realized gains (losses) on investments, excluding impairment losses. Recognition of Revenue and Costs: condensed Investment Impairments: For a fixed income security that the Company does not intend to sell and where it is more likely than not that the Company will not have to sell the security, the Company separates the credit loss component of the impairment from the amount related to all other factors and reports the credit loss component within net realized gains (losses) on investments, excluding impairment losses in the condensed consolidated statements of operations. The impairment related to all other factors (non-credit factors) is reported in other comprehensive income (loss). The allowance is adjusted for any additional credit losses and subsequent recoveries. Upon recognizing a credit loss, the cost basis is not adjusted. The Company considers the extent to which fair value is below amortized cost in determining whether a credit-related loss exists. The Company also considers the credit quality rating of the security, focusing on those below investment grade, with emphasis on securities downgraded below investment grade. Additionally, the Company may conclude that a qualitative analysis is sufficient to support its conclusion that the present value of the expected cash flows equals or exceeds a security’s amortized cost. The Company reports investment income due and accrued separately from available-for-sale fixed income securities and has elected not to measure an allowance for credit losses for investment income due and accrued. Investment income due and accrued is written off through at the time the issuer defaults or is expected to default on payments. Deductible Receivables : Recently Adopted Accounting Pronouncements: The Company adopted the guidance recognized a cumulative effect adjustment of $ ($ , net of tax), The updated guidance in ASU 2016-13 also amended the previous other-than-temporary impairment ("OTTI") model for available-for-sale fixed income securities by requiring the recognition of impairments relating to credit losses through an allowance account and limits the amount of credit loss to the difference between a security’s amortized cost basis and its fair value. In addition, the length of time a security has been in an unrealized loss position will no longer impact the determination of whether a credit loss exists. The Company adopted the guidance related to available-for-sale fixed income securities on January 1, 2020 using a prospective transition approach for available-for-sale fixed income securities that were purchased with credit deterioration or had recognized an OTTI write-down prior to the effective date. The effect of the prospective transition approach was to maintain the same amortized cost basis before and after the effective date. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement, or ASU 2018-13. This update removed the disclosure requirements for the amounts of and the reasons for transfers between Level 1 and Level 2 and disclosure of the policy for timing of transfers between levels. This update also removed disclosure requirements for the valuation processes for Level 3 fair value measurements. Additionally, this update added disclosure requirements for the changes in unrealized gains and losses for recurring Level 3 fair value measurements and quantitative information for certain unobservable inputs in Level 3 fair value measurements. The Company adopted ASU 2018-13 as of January 1, 2020. As the requirements of this guidance are applicable to disclosure only, the adoption of ASU 2018-13 had no material impact on the Company's condensed consolidated financial statements. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, or ASU 2019-12. Among other items, the amendments in ASU 2019-12 simplified the accounting treatment of tax law changes and year-to-date losses in interim periods. An entity generally recognizes the effects of a change in tax law in the period of enactment; however, there is an exception for tax laws with delayed effective dates. Under previous guidance, an entity could not adjust its annual effective tax rate for a tax law change until the period in which the law was effective. This exception was removed under ASU 2019-12, thereby providing that all effects of a tax law change are recognized in the period of enactment, including adjustment of the estimated annual effective tax rate. Regarding year-to-date losses in interim periods, an entity is required to estimate its annual effective tax rate for the full fiscal year at the end of each interim period and use that rate to calculate its income taxes on a year-to-date basis. However, previous guidance provided an exception that when a loss in an interim period exceeded the anticipated loss for the year, the income tax benefit was limited to the amount that would be recognized if the year-to-date loss were the anticipated loss for the full year. ASU 2019-12 removed this exception and provided that in this situation, an entity would compute its income tax benefit at each interim period based on its estimated annual effective tax rate. ASU 2019-12 became effective on January 1, 2021 and did not have a material effect on the Company's condensed consolidated financial statements |
Investments
Investments | 3 Months Ended |
Mar. 31, 2021 | |
Investments [Abstract] | |
Investments | (2) Investments: The following is a summary of available-for-sale securities at March 31, 2021 and December 31, 2020: Fair Value Cost or Amortized Cost Allowance for Credit Losses Gross Unrealized Gains Gross Unrealized Losses Net Unrealized Gains (Losses) March 31, 2021 Fixed income securities Agency collateralized mortgage obligations $ 11,821 $ 11,405 $ – $ 485 $ (69 ) $ 416 Agency mortgage-backed securities 114,822 113,228 – 2,254 (660 ) 1,594 Asset-backed securities 102,638 102,799 – 540 (701 ) (161 ) Bank loans 12,073 11,998 – 130 (55 ) 75 Collateralized mortgage obligations 6,167 6,027 – 240 (100 ) 140 Corporate securities 362,442 353,462 – 11,149 (2,169 ) 8,980 Mortgage-backed securities 38,612 39,967 (825 ) 490 (1,020 ) (530 ) Municipal obligations 46,464 45,358 – 1,184 (78 ) 1,106 Non-U.S. government obligations 30,648 30,083 – 574 (9 ) 565 U.S. government obligations 189,262 186,682 – 3,738 (1,158 ) 2,580 Total fixed income securities $ 914,949 $ 901,009 $ (825 ) $ 20,784 $ (6,019 ) $ 14,765 Fair Value Cost or Amortized Cost Allowance for Credit Losses Gross Unrealized Gains Gross Unrealized Losses Net Unrealized Gains (Losses) December 31, 2020 Fixed income securities Agency collateralized mortgage obligations $ 11,931 $ 11,448 $ – $ 483 $ – $ 483 Agency mortgage-backed securities 102,107 99,060 – 3,062 (15 ) 3,047 Asset-backed securities 107,696 108,686 – 596 (1,586 ) (990 ) Bank loans 11,361 11,590 – 128 (357 ) (229 ) Collateralized mortgage obligations 5,118 5,061 – 151 (94 ) 57 Corporate securities 360,241 344,059 – 16,380 (198 ) 16,182 Mortgage-backed securities 38,056 40,675 (1,035 ) 659 (2,243 ) (1,584 ) Municipal obligations 45,143 43,353 – 1,820 (30 ) 1,790 Non-U.S. government obligations 30,600 29,882 – 718 – 718 U.S. government obligations 207,439 200,654 – 7,000 (215 ) 6,785 Total fixed income securities $ 919,692 $ 894,468 $ (1,035 ) $ 30,997 $ (4,738 ) $ 26,259 The following table summarizes, for available-for-sale fixed income securities in an unrealized loss position at March 31, 2021 and December 31, 2020, the aggregate fair value and gross unrealized loss categorized by the duration individual securities have been continuously in an unrealized loss position. March 31, 2021 December 31, 2020 Number of Securities Fair Value Gross Unrealized Loss Number of Securities Fair Value Gross Unrealized Loss Fixed income securities: 12 months or less 174 $ 275,685 $ (4,448 ) 100 $ 120,630 $ (3,405 ) Greater than 12 months 31 51,441 (1,571 ) 24 33,065 (1,333 ) Total fixed income securities 205 $ 327,126 $ (6,019 ) 124 $ 153,695 $ (4,738 ) The fair value and the cost or amortized costs of fixed income investments at March 31, 2021, organized by contractual maturity, are shown below. Actual maturities may ultimately 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 $ 96,999 $ 96,057 Excess of one year to five years 368,593 358,662 Excess of five years to ten years 165,436 163,115 Excess of ten years 16,028 16,601 Contractual maturities 647,056 634,435 Asset-backed securities 267,893 266,574 Total $ 914,949 $ 901,009 Following is a summary of the components of net realized and unrealized gains (losses) on investments for the periods presented in the accompanying condensed consolidated statements of operations. Three Months Ended March 31 2021 2020 Gross gains on available-for-sale fixed income securities during the period $ 4,151 $ 2,652 Gross losses on available-for-sale fixed income securities during the period (1,965 ) (4,741 ) Impairment losses on investments (82 ) (40 ) Change in value of limited partnership investments 448 (676 ) Gains (losses) on equity securities: Realized gains (losses) on equity securities sold during the period 153 (2,698 ) Unrealized gains (losses) on equity securities held at the end of the period 7,804 (22,253 ) Realized and unrealized gains (losses) on equity securities during the period 7,957 (24,951 ) Net realized and unrealized gains (losses) on investments $ 10,509 $ (27,756 ) The Company recognizes impairments related to credit losses through an allowance account on the balance sheet with a corresponding adjustment to earnings and limits the amount of credit loss to the difference between a security’s amortized cost basis and its fair value. For those securities in an unrealized loss position throughout the period where the Company intended to sell the security at the balance sheet date, a write down to earnings of $ was recorded during the three months ended March 31, 2021. The Company also analyzed securities in an unrealized loss position for credit losses and recorded an allowance for credit losses of $ as of , , a reduction of $ from the allowance of $ recorded at . The Company reviewed its remaining fixed income securities in an unrealized loss position as of and determined the losses were the result of non-credit factors. The Company currently does not intend to sell nor does it expect to be required to sell these securities before recovery of their amortized cost. Shareholders' equity at March 31, 2021 included approximately $4,201, net of federal income tax expense, of reported earnings that remain undistributed by limited partnerships. |
Reinsurance
Reinsurance | 3 Months Ended |
Mar. 31, 2021 | |
Reinsurance [Abstract] | |
Reinsurance | (3) Reinsurance: The following table summarizes the Company's transactions with reinsurers for the three months ended March 31, 2021 and 2020 comparative periods. 2021 2020 Three months ended March 31: Premiums ceded to reinsurers $ 26,886 $ 28,467 Losses and loss expenses ceded to reinsurers 16,986 23,536 Commissions from reinsurers 6,867 7,528 |
Loss and Loss Expense Reserves
Loss and Loss Expense Reserves | 3 Months Ended |
Mar. 31, 2021 | |
Loss and Loss Expense Reserves [Abstract] | |
Loss and Loss Expense Reserves | (4) Loss and Loss Expense Reserves: Activity in the reserves for losses and loss expenses for the three months ended March 31, 2021 and 2020 is summarized as follows. All amounts are shown net of reinsurance, unless otherwise indicated. Three Months Ended March 31 2021 2020 Reserves, gross of reinsurance recoverable, at the beginning of the year $ 1,089,669 $ 988,305 Reinsurance recoverable on unpaid losses at the beginning of the year 424,368 398,305 Reserves at the beginning of the year, net of reinsurance 665,301 590,000 Provision for losses and loss expenses, net: Claims occurring during the current period 83,143 81,839 Claims occurring during prior periods (825 ) (8 ) Total incurred 82,318 81,831 Loss and loss expense payments, net: Claims occurring during the current period 8,082 8,169 Claims occurring during prior periods 52,847 61,812 Total paid 60,929 69,981 Reserves at the end of the period, net of reinsurance 686,690 601,850 Reinsurance recoverable on unpaid losses at the end of the period 421,442 399,749 Reserves, gross of reinsurance recoverable, at the end of the period $ 1,108,132 $ 1,001,599 The $825 prior accident year favorable development during the three months ended March 31, 2021 was primarily due to favorable loss development in the Company's commercial automobile liability line of business for more recent accident years due to better than expected reported loss development. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2021 | |
Segment Information [Abstract] | |
Segment Information | (5) Segment Information: The Company has one reportable business segment in its operations: Property and Casualty Insurance. The property and casualty insurance segment provides multiple lines of insurance coverage primarily to commercial automobile companies, as well as to independent contractors who contract with commercial automobile companies. The following table summarizes segment revenues for the three months ended March 31, 2021 and 2020: Three Months Ended March 31 2021 2020 Revenues: Net premiums earned $ 122,853 $ 109,659 Net investment income 5,306 7,236 Net realized and unrealized gains (losses) on investments 10,509 (27,756 ) Commissions and other income 1,858 1,663 Total revenues $ 140,526 $ 90,802 |
Debt
Debt | 3 Months Ended |
Mar. 31, 2021 | |
Debt [Abstract] | |
Debt | (6) Debt: On August 9, 2018, the Company entered into a credit agreement providing a revolving credit facility with a $40,000 limit, with the option for up to an additional $35,000 in incremental loans at the discretion of the lenders. This credit agreement has an expiration date of August 9, 2022. Interest on this revolving credit facility is referenced to the London Interbank Offered Rate and can be fixed for periods of up to one year at the Company's option. Outstanding drawings on this revolving credit facility were $20,000 as of March 31, 2021. At March 31, 2021, the effective interest rate was 1.21%, and the Company had $20,000 remaining available under the revolving credit facility. The current outstanding borrowings were used to repay the Company's previous line of credit. The Company's revolving credit facility has two financial covenants, each of which were met as of March 31, 2021. These covenants require the Company to have a minimum U.S. generally accepted accounting principles net worth and a maximum consolidated debt to equity ratio of 0.35. |
Taxes
Taxes | 3 Months Ended |
Mar. 31, 2021 | |
Taxes [Abstract] | |
Taxes | (7) Taxes: The Company uses the estimated annual effective tax rate method for calculating its tax provision in interim periods, which represents the Company’s best estimate of the effective tax rate expected for the full year based on projected annual taxable income (loss). The effective tax rate can fluctuate throughout the year because estimates used in the quarterly tax provision are updated as more information becomes available throughout the year. The effective federal tax rate on consolidated income for the three months ended March 31, 2021 was 20.9% compared to 11.9% on consolidated loss for the three months ended March 31, 2020. The pre-tax loss for the three months ended March 31, 2020 makes these interim period effective tax rates less comparable year-over-year. The difference in the effective federal income tax rate from the normal statutory rate in the three months ended March 31, 2021 was primarily related to the effects of tax-exempt investment income and the dividends received deduction. The difference in the effective federal income tax rate from the normal statutory rate in the three months ended March 31, 2020 was primarily related to the recording of a valuation allowance on the Company's deferred tax assets in that period, in addition to the effects of tax-exempt investment income and the dividends received deduction. In assessing the valuation of deferred tax assets, the Company considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income or availability to carryback the losses to taxable income during the periods in which those temporary differences become deductible. In response to the COVID-19 pandemic, the Coronavirus Aid, Relief, and Economic Security Act of 2020, as amended (the “CARES Act”), was signed into law on March 27, 2020, to provide national emergency economic relief measures. The CARES Act, among other things, permits net operating loss (“NOL”) carryovers and carrybacks to offset 100% of taxable income for taxable years beginning before 2021. In addition, the CARES Act allows NOLs incurred in 2018, 2019, and 2020 to be carried back to each of the five preceding taxable years to generate a refund of previously paid income taxes. The Company has evaluated the impact of the CARES Act and has determined it did not have a material impact on the Company's results of operations. As of March 31, 2021, the Company's calendar years 2020, 2019, 2018 and 2017 r |
Fair Value
Fair Value | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value [Abstract] | |
Fair Value | (8) Fair Value: Assets and liabilities recorded at fair value in the condensed consolidated balance sheets are categorized based upon the level of judgment associated with the inputs used to measure their fair value. The following tables summarize fair value measurements by level for assets measured at fair value on a recurring basis: As of March 31, 2021: Description Total Level 1 Level 2 Level 3 Fixed income securities: Agency collateralized mortgage obligations $ 11,821 $ – $ 11,821 $ – Agency mortgage-backed securities 114,822 – 114,822 – Asset-backed securities 102,638 – 102,638 – Bank loans 12,073 – 12,073 – Collateralized mortgage obligations 6,167 – 6,167 – Corporate securities 351,511 – 351,511 – Options embedded in convertible securities 10,931 – 10,931 – Mortgage-backed securities 38,612 – 38,612 – Municipal obligations 46,464 – 46,464 – Non-U.S. government obligations 30,648 – 30,648 – U.S. government obligations 189,262 – 189,262 – Total fixed income securities 914,949 – 914,949 – Equity securities: Consumer 12,373 12,373 – – Energy 1,661 1,661 – – Financial 34,108 34,108 – – Industrial 5,978 5,978 – – Technology 3,669 3,669 – – Other 9,226 9,226 – – Total equity securities 67,015 67,015 – – Short-term investments 1,000 1,000 – – Cash equivalents 86,961 – 86,961 – Total $ 1,069,925 $ 68,015 $ 1,001,910 $ – As of December 31, 2020: Description Total Level 1 Level 2 Level 3 Fixed income securities: Agency collateralized mortgage obligations $ 11,931 $ – $ 11,931 $ – Agency mortgage-backed securities 102,107 – 102,107 – Asset-backed securities 107,696 – 107,696 – Bank loans 11,361 – 11,361 – Collateralized mortgage obligations 5,118 – 5,118 – Corporate securities 352,837 – 352,837 – Options embedded in convertible securities 7,404 – 7,404 – Mortgage-backed securities 38,056 – 38,056 – Municipal obligations 45,143 – 45,143 – Non-U.S. government obligations 30,600 – 30,600 – U.S. government obligations 207,439 – 207,439 – Total fixed income securities 919,692 – 919,692 – Equity securities: Consumer 11,598 11,598 – – Energy 1,227 1,227 – – Financial 29,064 29,064 – – Industrial 5,180 5,180 – – Technology 2,851 2,851 – – Other 8,249 8,249 – – Total equity securities 58,169 58,169 – – Short-term investments 1,000 1,000 – – Cash equivalents 47,026 – 47,026 – Total $ 1,025,887 $ 59,169 $ 966,718 $ – 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 Company did not have any Level 3 assets carried at fair value at March 31, 2021 or December 31, 2020. Level 3 assets, when present, are valued using various unobservable inputs, including extrapolated data, proprietary models and indicative quotes. Quoted market prices are obtained whenever possible. Where quoted market prices are not available, fair values are estimated using broker/dealer quotes for specific securities. These techniques are significantly affected by the Company's assumptions, including discount rates and estimates of future cash flows. Potential taxes and other transaction costs have not been considered in estimating fair values. In addition to the preceding disclosures on assets recorded at fair value in the condensed 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 condensed 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; therefore, the Company's carrying value of limited partnerships approximates fair value. These investments are not actively traded and the corresponding inputs are based on data provided by the investees. Commercial mortgage loans: Commercial mortgage loans are carried primarily at amortized cost along with a valuation allowance for losses when necessary. These investments represent interests in commercial mortgage loans originated and serviced by a third party of which the Company shares, on a pro-rata basis, in all related cash flows of the underlying mortgage loans. The fair value of the Company’s investment in these commercial mortgage loans is based on expected future cash flows discounted at the current interest rate for origination of similar quality loans, adjusted for specific loan risk. Short-term borrowings: The fair value of the Company's 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 the Company 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 condensed consolidated balance sheets at March 31, 2021 and December 31, 2020 is as follows: Carrying Fair Value Value Level 1 Level 2 Level 3 Total March 31, 2021 Assets: Limited partnerships $ 7,476 $ – $ – $ 7,476 $ 7,476 Commercial mortgage loans 10,866 – – 11,688 11,688 Liabilities: Short-term borrowings 20,000 – 20,000 – 20,000 December 31, 2020 Assets: Limited partnerships $ 7,214 $ – $ – $ 7,214 $ 7,214 Commercial mortgage loans 10,602 – – 11,425 11,425 Liabilities: Short-term borrowings 20,000 – 20,000 – 20,000 |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2021 | |
Stock-Based Compensation [Abstract] | |
Stock-Based Compensation | (9) Stock-Based Compensation: The Company issues shares of restricted Class B Common Stock to the Company's outside directors as part of their annual retainer compensation. The shares are distributed to the outside directors on the vesting date, which, with the exception of pro-rated annual retainers granted to outside directors, is one year following the date of grant. On May 17, 2019, the Company granted shares of restricted Class B Common Stock in connection with the election of a new outside director, reflecting such director’s pro-rated annual retainer compensation, which shares vested and were distributed on May 7, 2020. Additionally, effective May 22, 2019, John D. Nichols, Jr. ceased serving as the Company's Interim Chief Executive Officer and principal executive officer, but continued to serve as Chairman of the Company's Board of Directors. On May 22, 2019, the Company granted shares of restricted Class B Common Stock to Mr. Nichols in connection with this transition, Grant Date Number of Shares Issued Vesting Date Service Period Grant Date Fair Value Per Share 5/7/2019 29,536 5/7/2020 7/1/2019 - 6/30/2020 $ 16.25 5/17/2019 3,591 5/7/2020 7/1/2019 - 6/30/2020 $ 16.25 5/22/2019 3,541 5/7/2020 7/1/2019 - 6/30/2020 $ 16.25 5/5/2020 42,220 5/5/2021 7/1/2020 - 6/30/2021 $ 14.21 Compensation expense related to the above stock grants is recognized over the period in which the directors render services. In March 2018, the Company's Compensation Committee, now known as the Compensation and Human Capital Committee (the "Committee"), granted Value Creation Incentive Plan awards (the "2018 VCIP Awards") to certain participants under the Company's Long-Term Incentive Plan (the "Long-Term Incentive Plan"). The 2018 VCIP Awards were performance-based equity awards that could be earned based on the Company's cumulative operating income over a three-year performance period from January 1, 2018 through December 31, 2020 relative to a cumulative operating income goal for the period set by the Compensation Committee in March 2018. Any 2018 VCIP Awards that were earned would have been paid in unrestricted shares of the Company's Class B Common Stock at the end of the three-year performance period, but no later than March 15, 2021. No shares were earned under the 2018 VCIP Awards for the three-year performance period ended December 31, 2020. On November 13, 2018, the Company entered into an employment agreement with its Interim Chief Executive Officer, John D. Nichols, Jr. Pursuant to the terms of this employment agreement, on November 13, 2018, Mr. Nichols was granted 85,000 restricted shares of the Company's Class B Common Stock (the "Nichols Stock Grant"), of which 42,500 shares vested as of October 17, 2019; 21,250 shares vested as of October 17, 2020, and 21,250 shares will vest as of October 17, 2021. The Company incurred $183 of expense during the three months ended March 31, 2021 related to the Nichols Stock Grant. In March 2019, the Committee granted equity-based awards pursuant to the Long-Term Incentive Plan. Certain participants under the Long-Term Incentive Plan were granted equity awards (the "2019 LTIP Awards"), with the number of shares of Class B Common Stock earned pursuant to such awards determined by applying a performance matrix consisting of a corporate performance component as well as a personal performance component. The corporate performance component of the 2019 LTIP Awards was determined based on the Company's achievement of 2019 underwriting income compared to the plan target. The Company's underwriting income was calculated as income (loss) before federal income tax expense (benefit), less net realized and unrealized gains (losses) on investments, less net investment income. The personal performance component of the 2019 LTIP Awards was determined based on the achievement of personal goals that aligned with departmental and corporate objectives for 2019. 2019 LTIP Awards earned were paid in shares of restricted Class B Common Stock in early 2020. One-third of such shares will vest annually over the period beginning one year from the date of issue. The Company incurred $ of expense during the months ended related to the 2019 LTIP Awards. On May 22, 2019, the Company entered into an employment agreement with its new Chief Executive Officer, Jeremy D. Edgecliffe-Johnson. Pursuant to the terms of this employment agreement, on May 22, 2019, Mr. Edgecliffe-Johnson was granted 70,000 restricted shares of the Company's Class B Common Stock (the "Edgecliffe-Johnson Stock Grant"), of which 35,000 shares will vest as of June 1, 2022, 21,000 shares will vest as of June 1, 2023, and 14,000 shares will vest as of June 1, 2024. The Company incurred $399 of expense during the three months ended March 31, 2021 related to the Edgecliffe-Johnson Stock Grant. On November 5, 2019, the Board of the Company, upon the recommendation of the Committee, approved equity compensation awards to be granted to seven members of senior management as of November 12, 2019 under the Long-Term Incentive Plan. The Board approved a total of $1,100 in grants of restricted shares of the Company’s Class B Common Stock, which will vest on January 1, 2023, subject to the recipient’s continued employment with the Company through the vesting date. The Company incurred $52 of expense during the three months ended March 31, 2021 related to this grant. On July 6, 2020, the Committee granted a total of 101,400 restricted shares of the Company's Class B Common Stock to certain members of senior management under the Long-Term Incentive Plan. These 101,400 restricted shares will vest on July 1, 2023, subject to the recipient’s continued employment with the Company through the vesting date. The Company incurred $328 of expense during the three months ended March 31, 2021 related to this grant. |
Litigation, Commitments and Con
Litigation, Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2021 | |
Litigation, Commitments and Contingencies [Abstract] | |
Litigation, Commitments and Contingencies | (10) Litigation, Commitments and Contingencies: In the ordinary, regular and routine course of their business, the Company and its Insurance Subsidiaries are frequently involved in various matters of litigation relating principally to claims for insurance coverage provided. No currently pending matter is deemed by management to be material to the Company, other than as noted below. Personnel Staffing Group Litigation In July 2019, Protective Insurance Company (“Protective”) was named as a defendant in an action brought by a former insured, Personnel Staffing Group d/b/a MVP Staffing (“PSG”), in the U.S. District Court for the Central District of California (the “California Action”) alleging that Protective had breached its workers’ compensation insurance policy and had breached the duties of good faith and fair dealing. Protective provided workers’ compensation insurance to PSG from January 1, 2017 through June 30, 2018, which was subject to a $500 per claim deductible to be paid by PSG. No specific damages were included in the complaint. In August 2019, Protective filed a motion to dismiss or stay the action. On April 28, 2020, Protective's motion to dismiss the California Action was granted without prejudice on grounds that Indiana is the more appropriate forum. On May 4, 2020, PSG filed a notice of appeal in the 9 th th In August 2019, Protective filed a lawsuit against PSG in Marion County Superior Court, in Indianapolis, Indiana (the “Indiana Court”) alleging breach of contract, breach of the parties' collateral agreement, breach of the parties' indemnity agreement, and seeking a declaratory judgment regarding PSG’s obligation to fund its ongoing claim deductible obligations and adequately collateralize Protective’s current and ongoing claims exposure pursuant to terms of the parties' agreements (the “Indiana Action”). In October 2019, Protective amended the complaint to include allegations of misrepresentation as to source of coverage, negligent misrepresentation, fraud and racketeering and seeking injunctive relief. In November 2019, PSG filed a motion to dismiss the Indiana Action on the basis of comity with the California Action, claiming that California was the proper forum for Protective’s claims. In February 2020, the Indiana Court issued an order dismissing the Indiana Action without prejudice; the Indiana Court declined to rule on the legal effect of the forum selection clause in the parties’ agreements, finding that any interpretation should be addressed by the court in the California Action. Following the court's granting of Protective’s motion to dismiss in the California Action, on May 1, 2020, Protective filed a motion with the Indiana Court to re-open the Indiana Action, which was denied on September 23, 2020. On December 22, 2020, Protective moved for reconsideration of its Motion to Re-Open the Indiana Action, which the Indiana Court granted on February 5, 2021. On February 18, 2021, PSG moved for further reconsideration and for hearing, which was held on March 2, 2021. On March 31, 2021, the Indiana Court ruled that Protective had shown good cause to reinstate the Indiana Action, premised on the California Action remaining dismissed. Protective intends to vigorously pursue its claims against PSG, however, the ultimate outcome cannot be presently determined. Pursuant to the terms of the workers’ compensation policies, Protective has a duty to adjust and pay claims arising under the policies regardless of whether PSG makes payments to Protective for deductible obligations under the policies. Under its contractual obligations to Protective, PSG is required to maintain a “loss fund” for the payment of claims, the balance of which is to remain at or above $4,000; in addition, PSG is required to provide collateral in an amount equal to 110% of Protective’s current open case reserves on workers’ compensation claims arising under the policies. As of March 31, 2021, Protective had approximately $24,068 in receivables on claims arising under PSG’s workers’ compensation policies and had exhausted all collateral provided by PSG. Protective continues to pay claims settlements under the policies without reimbursement from PSG. For the past six months, the average monthly invoices have been approximately $778. PSG’s estimated ultimate obligation under the agreements is approximately $47,000 as of March 31, 2021 (inclusive of the $24,068 in receivables noted above). At March 31, 2021, based on the Company's assessment that PSG will continue to operate as a business and that the terms of the agreement with PSG will be legally enforceable, the Company believes that it will fully collect all current and future amounts due from PSG relating to this matter. The Company considered this matter in its assessment of measuring credit losses under the CECL guidance discussed in Note 1 by applying a probability-of-default methodology to projected estimated cash flows to estimate the allowance for expected credit losses for this matter. The Company considered the delay in reimbursement for claims paid as well as probability of default assumptions when analyzing the credit loss related to this matter. As of January 1, 2020, in conjunction with the adoption of ASU 2016-13, the Company recorded an allowance for expected credit losses of $15,000 ($11,850, net of tax) as a reduction to equity. During the third quarter of 2020, the Company performed an update to its CECL allowance calculation related to the PSG matter. As noted above, there have been further delays in the litigation process, which have extended the estimated cash flow timing. As a result of these delays and an increase in the estimated ultimate obligation, the Company recorded an additional allowance of $1,500 ($1,185, net of tax) within other operating expenses in the condensed consolidated statement of operations during the third quarter of 2020. No additional allowance was recorded in the fourth quarter of 2020 or the first quarter of 2021. In the event of a situation that results in no recovery from PSG, the Company would incur an estimated charge to the consolidated statement of operations of $30,500 ($24,095, net of tax), which represents the estimated ultimate obligation discussed above less the CECL allowance. |
Shareholders' Equity
Shareholders' Equity | 3 Months Ended |
Mar. 31, 2021 | |
Shareholders' Equity [Abstract] | |
Shareholders' Equity | (11) Shareholders' Equity: On August 31, 2017, the Company's Board of Directors authorized the reinstatement of its share repurchase program for up to 2,464,209 shares of the Company's Class A or Class B Common Stock. No duration has been placed on the Company's share repurchase program, and the Company reserves the right to amend, suspend or discontinue it at any time. The share repurchase program does not commit the Company to repurchase any shares of its common stock. During the three months ended March 31, 2021, the Company did not repurchase any shares under the share repurchase program. No share repurchases have been made since March 20, 2020. The following table illustrates changes in accumulated other comprehensive income (loss) by component for the three months ended March 31, 2021: Foreign Currency Unrealized Holding Gains (Losses) on Available-for-sale Securities Total Beginning balance at December 31, 2020 $ (245 ) $ 22,004 $ 21,759 Other comprehensive income (loss) before reclassifications 88 (8,580 ) (8,492 ) Amounts reclassified from accumulated other comprehensive income (loss) – (501 ) (501 ) Net current-period other comprehensive income (loss) 88 (9,081 ) (8,993 ) Ending balance at March 31, 2021 $ (157 ) $ 12,923 $ 12,766 The following table illustrates changes in accumulated other comprehensive income (loss) by component for the three months ended March 31, 2020: Foreign Currency Unrealized Holding Gains (Losses) on Available-for-sale Securities Total Beginning balance at December 31, 2019 $ (494 ) $ 9,863 $ 9,369 Other comprehensive income (loss) before reclassifications (687 ) (20,256 ) (20,943 ) Amounts reclassified from accumulated other comprehensive income (loss) – (605 ) (605 ) Net current-period other comprehensive income (loss) (687 ) (20,861 ) (21,548 ) Ending balance at March 31, 2020 $ (1,181 ) $ (10,998 ) $ (12,179 ) |
Related Parties
Related Parties | 3 Months Ended |
Mar. 31, 2021 | |
Related Parties [Abstract] | |
Related Parties | (12) Related Parties: The Company utilizes the services of an investment firm of which one director of the Company is a partial owner. This investment firm manages equity securities and fixed income portfolios held by the Company with an aggregate market value of approximately $8,857 at March 31, 2021. Total commissions and net fees earned by this investment firm and its affiliates on these portfolios were $8 and $37 for the three months ended March 31, 2021 and 2020. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | ( 13) Subsequent Events: On May 4, 2021, the Company's Board of Directors declared a regular quarterly dividend of $0.10 per share on the Company's Class A and Class B Common Stock. The dividend per share will be payable June 1, 2021 to shareholders of record on May 18, 2021. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
Summary of Significant Accounting Policies [Abstract] | |
Description of Business | Description of Business: The term “Insurance Subsidiaries,” as used throughout this document, refers to Protective Insurance Company, Protective Specialty Insurance Company, Sagamore Insurance Company and B&L Insurance, Ltd. |
Basis of Presentation | Basis of Presentation: |
Investments | Investments : Commercial mortgage loans are carried primarily at amortized cost along with an allowance for losses when necessary. These investments represent interests in commercial mortgage loans originated and serviced by a third party of which the Company shares, on a pro-rata basis, in all related cash flows of the underlying mortgage loans. The Company recorded an allowance of $195 on its commercial mortgage loans as of March 31, 2021 and December 31, 2020. The Company accounts for investments in limited partnerships using the equity method of accounting, which requires an investor in a limited partnership to record its proportionate share of the limited partnership's net income. To the extent the limited partnerships include both realized and unrealized investment gains or losses in the determination of net income or loss, then the Company would also recognize, through its condensed consolidated statements of operations, its proportionate share of the investee's unrealized, as well as realized, investment gains or losses within net unrealized gains (losses) on equity securities and limited partnership investments. Short-term and other investments are carried at cost, which approximates their fair values. Fixed income securities are considered to be available-for-sale. The related unrealized net gains or losses (net of applicable tax effects) on fixed income securities are reflected directly in other comprehensive income (loss) within shareholders' equity. Included within available-for-sale fixed income securities are convertible debt securities. A portion of the changes in the fair values of convertible debt securities is reflected as a component of net realized gains (losses) on investments, excluding impairment losses within the condensed consolidated statements of operations. Realized gains and losses on disposals of fixed income securities are recorded on the trade date. Realized gains and losses on fixed income securities are determined by the specific identification of the cost of investments sold and are included in net realized gains (losses) on investments, excluding impairment losses. |
Recognition of Revenue and Costs | Recognition of Revenue and Costs: condensed |
Investment Impairments | Investment Impairments: For a fixed income security that the Company does not intend to sell and where it is more likely than not that the Company will not have to sell the security, the Company separates the credit loss component of the impairment from the amount related to all other factors and reports the credit loss component within net realized gains (losses) on investments, excluding impairment losses in the condensed consolidated statements of operations. The impairment related to all other factors (non-credit factors) is reported in other comprehensive income (loss). The allowance is adjusted for any additional credit losses and subsequent recoveries. Upon recognizing a credit loss, the cost basis is not adjusted. The Company considers the extent to which fair value is below amortized cost in determining whether a credit-related loss exists. The Company also considers the credit quality rating of the security, focusing on those below investment grade, with emphasis on securities downgraded below investment grade. Additionally, the Company may conclude that a qualitative analysis is sufficient to support its conclusion that the present value of the expected cash flows equals or exceeds a security’s amortized cost. The Company reports investment income due and accrued separately from available-for-sale fixed income securities and has elected not to measure an allowance for credit losses for investment income due and accrued. Investment income due and accrued is written off through at the time the issuer defaults or is expected to default on payments. |
Deductible Receivables | Deductible Receivables : |
Recently Adopted and Recently Issued Accounting Pronouncements | Recently Adopted Accounting Pronouncements: The Company adopted the guidance recognized a cumulative effect adjustment of $ ($ , net of tax), The updated guidance in ASU 2016-13 also amended the previous other-than-temporary impairment ("OTTI") model for available-for-sale fixed income securities by requiring the recognition of impairments relating to credit losses through an allowance account and limits the amount of credit loss to the difference between a security’s amortized cost basis and its fair value. In addition, the length of time a security has been in an unrealized loss position will no longer impact the determination of whether a credit loss exists. The Company adopted the guidance related to available-for-sale fixed income securities on January 1, 2020 using a prospective transition approach for available-for-sale fixed income securities that were purchased with credit deterioration or had recognized an OTTI write-down prior to the effective date. The effect of the prospective transition approach was to maintain the same amortized cost basis before and after the effective date. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement, or ASU 2018-13. This update removed the disclosure requirements for the amounts of and the reasons for transfers between Level 1 and Level 2 and disclosure of the policy for timing of transfers between levels. This update also removed disclosure requirements for the valuation processes for Level 3 fair value measurements. Additionally, this update added disclosure requirements for the changes in unrealized gains and losses for recurring Level 3 fair value measurements and quantitative information for certain unobservable inputs in Level 3 fair value measurements. The Company adopted ASU 2018-13 as of January 1, 2020. As the requirements of this guidance are applicable to disclosure only, the adoption of ASU 2018-13 had no material impact on the Company's condensed consolidated financial statements. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, or ASU 2019-12. Among other items, the amendments in ASU 2019-12 simplified the accounting treatment of tax law changes and year-to-date losses in interim periods. An entity generally recognizes the effects of a change in tax law in the period of enactment; however, there is an exception for tax laws with delayed effective dates. Under previous guidance, an entity could not adjust its annual effective tax rate for a tax law change until the period in which the law was effective. This exception was removed under ASU 2019-12, thereby providing that all effects of a tax law change are recognized in the period of enactment, including adjustment of the estimated annual effective tax rate. Regarding year-to-date losses in interim periods, an entity is required to estimate its annual effective tax rate for the full fiscal year at the end of each interim period and use that rate to calculate its income taxes on a year-to-date basis. However, previous guidance provided an exception that when a loss in an interim period exceeded the anticipated loss for the year, the income tax benefit was limited to the amount that would be recognized if the year-to-date loss were the anticipated loss for the full year. ASU 2019-12 removed this exception and provided that in this situation, an entity would compute its income tax benefit at each interim period based on its estimated annual effective tax rate. ASU 2019-12 became effective on January 1, 2021 and did not have a material effect on the Company's condensed consolidated financial statements |
Investments (Tables)
Investments (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Investments [Abstract] | |
Available-for-Sale Securities | The following is a summary of available-for-sale securities at March 31, 2021 and December 31, 2020: Fair Value Cost or Amortized Cost Allowance for Credit Losses Gross Unrealized Gains Gross Unrealized Losses Net Unrealized Gains (Losses) March 31, 2021 Fixed income securities Agency collateralized mortgage obligations $ 11,821 $ 11,405 $ – $ 485 $ (69 ) $ 416 Agency mortgage-backed securities 114,822 113,228 – 2,254 (660 ) 1,594 Asset-backed securities 102,638 102,799 – 540 (701 ) (161 ) Bank loans 12,073 11,998 – 130 (55 ) 75 Collateralized mortgage obligations 6,167 6,027 – 240 (100 ) 140 Corporate securities 362,442 353,462 – 11,149 (2,169 ) 8,980 Mortgage-backed securities 38,612 39,967 (825 ) 490 (1,020 ) (530 ) Municipal obligations 46,464 45,358 – 1,184 (78 ) 1,106 Non-U.S. government obligations 30,648 30,083 – 574 (9 ) 565 U.S. government obligations 189,262 186,682 – 3,738 (1,158 ) 2,580 Total fixed income securities $ 914,949 $ 901,009 $ (825 ) $ 20,784 $ (6,019 ) $ 14,765 Fair Value Cost or Amortized Cost Allowance for Credit Losses Gross Unrealized Gains Gross Unrealized Losses Net Unrealized Gains (Losses) December 31, 2020 Fixed income securities Agency collateralized mortgage obligations $ 11,931 $ 11,448 $ – $ 483 $ – $ 483 Agency mortgage-backed securities 102,107 99,060 – 3,062 (15 ) 3,047 Asset-backed securities 107,696 108,686 – 596 (1,586 ) (990 ) Bank loans 11,361 11,590 – 128 (357 ) (229 ) Collateralized mortgage obligations 5,118 5,061 – 151 (94 ) 57 Corporate securities 360,241 344,059 – 16,380 (198 ) 16,182 Mortgage-backed securities 38,056 40,675 (1,035 ) 659 (2,243 ) (1,584 ) Municipal obligations 45,143 43,353 – 1,820 (30 ) 1,790 Non-U.S. government obligations 30,600 29,882 – 718 – 718 U.S. government obligations 207,439 200,654 – 7,000 (215 ) 6,785 Total fixed income securities $ 919,692 $ 894,468 $ (1,035 ) $ 30,997 $ (4,738 ) $ 26,259 |
Fixed Maturity and Equity Security Investments in Unrealized Loss Position | The following table summarizes, for available-for-sale fixed income securities in an unrealized loss position at March 31, 2021 and December 31, 2020, the aggregate fair value and gross unrealized loss categorized by the duration individual securities have been continuously in an unrealized loss position. March 31, 2021 December 31, 2020 Number of Securities Fair Value Gross Unrealized Loss Number of Securities Fair Value Gross Unrealized Loss Fixed income securities: 12 months or less 174 $ 275,685 $ (4,448 ) 100 $ 120,630 $ (3,405 ) Greater than 12 months 31 51,441 (1,571 ) 24 33,065 (1,333 ) Total fixed income securities 205 $ 327,126 $ (6,019 ) 124 $ 153,695 $ (4,738 ) |
Fair Value and Cost or Amortized Cost of Fixed Maturity Investments by Contractual Maturity | The fair value and the cost or amortized costs of fixed income investments at March 31, 2021, organized by contractual maturity, are shown below. Actual maturities may ultimately 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 $ 96,999 $ 96,057 Excess of one year to five years 368,593 358,662 Excess of five years to ten years 165,436 163,115 Excess of ten years 16,028 16,601 Contractual maturities 647,056 634,435 Asset-backed securities 267,893 266,574 Total $ 914,949 $ 901,009 |
Net Realized and Unrealized Gains (Losses) on Investments | Following is a summary of the components of net realized and unrealized gains (losses) on investments for the periods presented in the accompanying condensed consolidated statements of operations. Three Months Ended March 31 2021 2020 Gross gains on available-for-sale fixed income securities during the period $ 4,151 $ 2,652 Gross losses on available-for-sale fixed income securities during the period (1,965 ) (4,741 ) Impairment losses on investments (82 ) (40 ) Change in value of limited partnership investments 448 (676 ) Gains (losses) on equity securities: Realized gains (losses) on equity securities sold during the period 153 (2,698 ) Unrealized gains (losses) on equity securities held at the end of the period 7,804 (22,253 ) Realized and unrealized gains (losses) on equity securities during the period 7,957 (24,951 ) Net realized and unrealized gains (losses) on investments $ 10,509 $ (27,756 ) |
Reinsurance (Tables)
Reinsurance (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Reinsurance [Abstract] | |
Reinsurance | The following table summarizes the Company's transactions with reinsurers for the three months ended March 31, 2021 and 2020 comparative periods. 2021 2020 Three months ended March 31: Premiums ceded to reinsurers $ 26,886 $ 28,467 Losses and loss expenses ceded to reinsurers 16,986 23,536 Commissions from reinsurers 6,867 7,528 |
Loss and Loss Expense Reserves
Loss and Loss Expense Reserves (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Loss and Loss Expense Reserves [Abstract] | |
Activity in Reserves for Losses and Loss Expenses | Activity in the reserves for losses and loss expenses for the three months ended March 31, 2021 and 2020 is summarized as follows. All amounts are shown net of reinsurance, unless otherwise indicated. Three Months Ended March 31 2021 2020 Reserves, gross of reinsurance recoverable, at the beginning of the year $ 1,089,669 $ 988,305 Reinsurance recoverable on unpaid losses at the beginning of the year 424,368 398,305 Reserves at the beginning of the year, net of reinsurance 665,301 590,000 Provision for losses and loss expenses, net: Claims occurring during the current period 83,143 81,839 Claims occurring during prior periods (825 ) (8 ) Total incurred 82,318 81,831 Loss and loss expense payments, net: Claims occurring during the current period 8,082 8,169 Claims occurring during prior periods 52,847 61,812 Total paid 60,929 69,981 Reserves at the end of the period, net of reinsurance 686,690 601,850 Reinsurance recoverable on unpaid losses at the end of the period 421,442 399,749 Reserves, gross of reinsurance recoverable, at the end of the period $ 1,108,132 $ 1,001,599 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Segment Information [Abstract] | |
Segment Revenues | The following table summarizes segment revenues for the three months ended March 31, 2021 and 2020: Three Months Ended March 31 2021 2020 Revenues: Net premiums earned $ 122,853 $ 109,659 Net investment income 5,306 7,236 Net realized and unrealized gains (losses) on investments 10,509 (27,756 ) Commissions and other income 1,858 1,663 Total revenues $ 140,526 $ 90,802 |
Fair Value (Tables)
Fair Value (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value [Abstract] | |
Fair Value Measurements by Level for Assets Measured at Fair Value on Recurring Basis | Assets and liabilities recorded at fair value in the condensed consolidated balance sheets are categorized based upon the level of judgment associated with the inputs used to measure their fair value. The following tables summarize fair value measurements by level for assets measured at fair value on a recurring basis: As of March 31, 2021: Description Total Level 1 Level 2 Level 3 Fixed income securities: Agency collateralized mortgage obligations $ 11,821 $ – $ 11,821 $ – Agency mortgage-backed securities 114,822 – 114,822 – Asset-backed securities 102,638 – 102,638 – Bank loans 12,073 – 12,073 – Collateralized mortgage obligations 6,167 – 6,167 – Corporate securities 351,511 – 351,511 – Options embedded in convertible securities 10,931 – 10,931 – Mortgage-backed securities 38,612 – 38,612 – Municipal obligations 46,464 – 46,464 – Non-U.S. government obligations 30,648 – 30,648 – U.S. government obligations 189,262 – 189,262 – Total fixed income securities 914,949 – 914,949 – Equity securities: Consumer 12,373 12,373 – – Energy 1,661 1,661 – – Financial 34,108 34,108 – – Industrial 5,978 5,978 – – Technology 3,669 3,669 – – Other 9,226 9,226 – – Total equity securities 67,015 67,015 – – Short-term investments 1,000 1,000 – – Cash equivalents 86,961 – 86,961 – Total $ 1,069,925 $ 68,015 $ 1,001,910 $ – As of December 31, 2020: Description Total Level 1 Level 2 Level 3 Fixed income securities: Agency collateralized mortgage obligations $ 11,931 $ – $ 11,931 $ – Agency mortgage-backed securities 102,107 – 102,107 – Asset-backed securities 107,696 – 107,696 – Bank loans 11,361 – 11,361 – Collateralized mortgage obligations 5,118 – 5,118 – Corporate securities 352,837 – 352,837 – Options embedded in convertible securities 7,404 – 7,404 – Mortgage-backed securities 38,056 – 38,056 – Municipal obligations 45,143 – 45,143 – Non-U.S. government obligations 30,600 – 30,600 – U.S. government obligations 207,439 – 207,439 – Total fixed income securities 919,692 – 919,692 – Equity securities: Consumer 11,598 11,598 – – Energy 1,227 1,227 – – Financial 29,064 29,064 – – Industrial 5,180 5,180 – – Technology 2,851 2,851 – – Other 8,249 8,249 – – Total equity securities 58,169 58,169 – – Short-term investments 1,000 1,000 – – Cash equivalents 47,026 – 47,026 – Total $ 1,025,887 $ 59,169 $ 966,718 $ – |
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 condensed consolidated balance sheets at March 31, 2021 and December 31, 2020 is as follows: Carrying Fair Value Value Level 1 Level 2 Level 3 Total March 31, 2021 Assets: Limited partnerships $ 7,476 $ – $ – $ 7,476 $ 7,476 Commercial mortgage loans 10,866 – – 11,688 11,688 Liabilities: Short-term borrowings 20,000 – 20,000 – 20,000 December 31, 2020 Assets: Limited partnerships $ 7,214 $ – $ – $ 7,214 $ 7,214 Commercial mortgage loans 10,602 – – 11,425 11,425 Liabilities: Short-term borrowings 20,000 – 20,000 – 20,000 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Stock-Based Compensation [Abstract] | |
Detail of Restricted Stock Issuances | The Company issues shares of restricted Class B Common Stock to the Company's outside directors as part of their annual retainer compensation. The shares are distributed to the outside directors on the vesting date, which, with the exception of pro-rated annual retainers granted to outside directors, is one year following the date of grant. On May 17, 2019, the Company granted shares of restricted Class B Common Stock in connection with the election of a new outside director, reflecting such director’s pro-rated annual retainer compensation, which shares vested and were distributed on May 7, 2020. Additionally, effective May 22, 2019, John D. Nichols, Jr. ceased serving as the Company's Interim Chief Executive Officer and principal executive officer, but continued to serve as Chairman of the Company's Board of Directors. On May 22, 2019, the Company granted shares of restricted Class B Common Stock to Mr. Nichols in connection with this transition, Grant Date Number of Shares Issued Vesting Date Service Period Grant Date Fair Value Per Share 5/7/2019 29,536 5/7/2020 7/1/2019 - 6/30/2020 $ 16.25 5/17/2019 3,591 5/7/2020 7/1/2019 - 6/30/2020 $ 16.25 5/22/2019 3,541 5/7/2020 7/1/2019 - 6/30/2020 $ 16.25 5/5/2020 42,220 5/5/2021 7/1/2020 - 6/30/2021 $ 14.21 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Shareholders' Equity [Abstract] | |
Changes in Accumulated Other Comprehensive Income (Loss) by Component | The following table illustrates changes in accumulated other comprehensive income (loss) by component for the three months ended March 31, 2021: Foreign Currency Unrealized Holding Gains (Losses) on Available-for-sale Securities Total Beginning balance at December 31, 2020 $ (245 ) $ 22,004 $ 21,759 Other comprehensive income (loss) before reclassifications 88 (8,580 ) (8,492 ) Amounts reclassified from accumulated other comprehensive income (loss) – (501 ) (501 ) Net current-period other comprehensive income (loss) 88 (9,081 ) (8,993 ) Ending balance at March 31, 2021 $ (157 ) $ 12,923 $ 12,766 The following table illustrates changes in accumulated other comprehensive income (loss) by component for the three months ended March 31, 2020: Foreign Currency Unrealized Holding Gains (Losses) on Available-for-sale Securities Total Beginning balance at December 31, 2019 $ (494 ) $ 9,863 $ 9,369 Other comprehensive income (loss) before reclassifications (687 ) (20,256 ) (20,943 ) Amounts reclassified from accumulated other comprehensive income (loss) – (605 ) (605 ) Net current-period other comprehensive income (loss) (687 ) (20,861 ) (21,548 ) Ending balance at March 31, 2020 $ (1,181 ) $ (10,998 ) $ (12,179 ) |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | |||||
Sep. 30, 2021USD ($)$ / shares | Mar. 31, 2021USD ($)Segment | Feb. 14, 2021$ / shares | Dec. 31, 2020USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Description of Business [Abstract] | ||||||
Number of reportable segments | Segment | 1 | |||||
Investments [Abstract] | ||||||
Allowance for credit loss | $ 195 | $ 195 | ||||
Recently Adopted Accounting Pronouncements [Abstract] | ||||||
Cumulative effect adjustment to opening balance of retained earnings, net of tax | (366,678) | (363,082) | $ (305,383) | $ (364,316) | ||
Minimum [Member] | Class A [Member] | ||||||
Voting and Support Agreement [Abstract] | ||||||
Percentage of outstanding common stock for voting | 35.00% | |||||
ASU 2016-13 [Member] | ||||||
Deductible Receivables [Abstract] | ||||||
Allowance for credit losses, before tax | 16,500 | 15,000 | ||||
Allowance for credit losses, net of tax | 13,035 | 11,850 | ||||
ASU 2016-13 [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | ||||||
Recently Adopted Accounting Pronouncements [Abstract] | ||||||
Cumulative effect adjustment to opening balance of retained earnings, net of tax | 12,281 | |||||
Commercial Mortgage Loans [Member] | ||||||
Investments [Abstract] | ||||||
Allowance for credit loss | 195 | 195 | ||||
Retained Earnings [Member] | ||||||
Recently Adopted Accounting Pronouncements [Abstract] | ||||||
Cumulative effect adjustment to opening balance of retained earnings, net of tax | $ (297,657) | $ (286,143) | $ (263,911) | (300,988) | ||
Retained Earnings [Member] | ASU 2016-13 [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | ||||||
Recently Adopted Accounting Pronouncements [Abstract] | ||||||
Cumulative effect adjustment to opening balance of retained earnings, before tax | 15,545 | |||||
Cumulative effect adjustment to opening balance of retained earnings, net of tax | $ 12,281 | |||||
Progressive [Member] | Maximum [Member] | ||||||
Merger Agreement [Abstract] | ||||||
Dividend payable (in dollars per share) | $ / shares | $ 0.10 | |||||
Progressive [Member] | Forecast [Member] | ||||||
Merger Agreement [Abstract] | ||||||
Share price (in dollars per share) | $ / shares | $ 23.30 | |||||
Total transaction value | $ 338,000 |
Investments, Summary of Availab
Investments, Summary of Available-for-sale Securities (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Available-for-sale Debt Securities [Abstract] | ||
Fair value | $ 914,949 | $ 919,692 |
Cost or amortized cost | 901,009 | 894,468 |
Allowance for credit losses | (825) | (1,035) |
Gross unrealized gains | 20,784 | 30,997 |
Gross unrealized losses | (6,019) | (4,738) |
Net unrealized gains (losses) | 14,765 | 26,259 |
Agency Collateralized Mortgage Obligations [Member] | ||
Available-for-sale Debt Securities [Abstract] | ||
Fair value | 11,821 | 11,931 |
Cost or amortized cost | 11,405 | 11,448 |
Allowance for credit losses | 0 | 0 |
Gross unrealized gains | 485 | 483 |
Gross unrealized losses | (69) | 0 |
Net unrealized gains (losses) | 416 | 483 |
Agency Mortgage-backed Securities [Member] | ||
Available-for-sale Debt Securities [Abstract] | ||
Fair value | 114,822 | 102,107 |
Cost or amortized cost | 113,228 | 99,060 |
Allowance for credit losses | 0 | 0 |
Gross unrealized gains | 2,254 | 3,062 |
Gross unrealized losses | (660) | (15) |
Net unrealized gains (losses) | 1,594 | 3,047 |
Asset-backed Securities [Member] | ||
Available-for-sale Debt Securities [Abstract] | ||
Fair value | 102,638 | 107,696 |
Cost or amortized cost | 102,799 | 108,686 |
Allowance for credit losses | 0 | 0 |
Gross unrealized gains | 540 | 596 |
Gross unrealized losses | (701) | (1,586) |
Net unrealized gains (losses) | (161) | (990) |
Bank Loans [Member] | ||
Available-for-sale Debt Securities [Abstract] | ||
Fair value | 12,073 | 11,361 |
Cost or amortized cost | 11,998 | 11,590 |
Allowance for credit losses | 0 | 0 |
Gross unrealized gains | 130 | 128 |
Gross unrealized losses | (55) | (357) |
Net unrealized gains (losses) | 75 | (229) |
Collateralized Mortgage Obligations [Member] | ||
Available-for-sale Debt Securities [Abstract] | ||
Fair value | 6,167 | 5,118 |
Cost or amortized cost | 6,027 | 5,061 |
Allowance for credit losses | 0 | 0 |
Gross unrealized gains | 240 | 151 |
Gross unrealized losses | (100) | (94) |
Net unrealized gains (losses) | 140 | 57 |
Corporate Securities [Member] | ||
Available-for-sale Debt Securities [Abstract] | ||
Fair value | 362,442 | 360,241 |
Cost or amortized cost | 353,462 | 344,059 |
Allowance for credit losses | 0 | 0 |
Gross unrealized gains | 11,149 | 16,380 |
Gross unrealized losses | (2,169) | (198) |
Net unrealized gains (losses) | 8,980 | 16,182 |
Mortgage-backed Securities [Member] | ||
Available-for-sale Debt Securities [Abstract] | ||
Fair value | 38,612 | 38,056 |
Cost or amortized cost | 39,967 | 40,675 |
Allowance for credit losses | (825) | (1,035) |
Gross unrealized gains | 490 | 659 |
Gross unrealized losses | (1,020) | (2,243) |
Net unrealized gains (losses) | (530) | (1,584) |
Municipal Obligations [Member] | ||
Available-for-sale Debt Securities [Abstract] | ||
Fair value | 46,464 | 45,143 |
Cost or amortized cost | 45,358 | 43,353 |
Allowance for credit losses | 0 | 0 |
Gross unrealized gains | 1,184 | 1,820 |
Gross unrealized losses | (78) | (30) |
Net unrealized gains (losses) | 1,106 | 1,790 |
Non-U.S. Government Obligations [Member] | ||
Available-for-sale Debt Securities [Abstract] | ||
Fair value | 30,648 | 30,600 |
Cost or amortized cost | 30,083 | 29,882 |
Allowance for credit losses | 0 | 0 |
Gross unrealized gains | 574 | 718 |
Gross unrealized losses | (9) | 0 |
Net unrealized gains (losses) | 565 | 718 |
U.S. Government Obligations [Member] | ||
Available-for-sale Debt Securities [Abstract] | ||
Fair value | 189,262 | 207,439 |
Cost or amortized cost | 186,682 | 200,654 |
Allowance for credit losses | 0 | 0 |
Gross unrealized gains | 3,738 | 7,000 |
Gross unrealized losses | (1,158) | (215) |
Net unrealized gains (losses) | $ 2,580 | $ 6,785 |
Investments, Continuous Unreali
Investments, Continuous Unrealized Loss Position (Details) $ in Thousands | Mar. 31, 2021USD ($)Secutrity | Dec. 31, 2020USD ($)Secutrity |
Available-for-sale Securities Continuous Unrealized Loss Positions [Abstract] | ||
Number of securities, 12 months or less | Secutrity | 174 | 100 |
Number of securities, Greater than 12 months | Secutrity | 31 | 24 |
Number of securities, total | Secutrity | 205 | 124 |
Available-for-sale Securities Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Fair value, 12 months or less | $ 275,685 | $ 120,630 |
Fair value, Greater than 12 months | 51,441 | 33,065 |
Fair value, total | 327,126 | 153,695 |
Available-for-sale Securities Continuous Unrealized Loss Position, Aggregate Losses [Abstract] | ||
Gross unrealized loss, 12 months or less | (4,448) | (3,405) |
Gross unrealized loss, Greater than 12 months | (1,571) | (1,333) |
Gross unrealized loss, total | (6,019) | (4,738) |
Available-for-sale Securities Debt Maturities Fair Value [Abstract] | ||
One year or less, Fair Value | 96,999 | |
Excess of one year to five years, Fair Value | 368,593 | |
Excess of five years to ten years, Fair Value | 165,436 | |
Excess of ten years, Fair Value | 16,028 | |
Total contractual maturities, Fair Value | 647,056 | |
Asset-backed securities, Fair Value | 267,893 | |
Total, Fair Value | 914,949 | 919,692 |
Available-for-sale Securities Debt Maturities Amortized Cost Basis [Abstract] | ||
One year or less, Cost or Amortized Cost | 96,057 | |
Excess of one year to five years, Cost or Amortized Cost | 358,662 | |
Excess of five years to ten years, Cost or Amortized Cost | 163,115 | |
Excess of ten years, Cost or Amortized Cost | 16,601 | |
Total contractual maturities, Cost or Amortized Cost | 634,435 | |
Asset-backed securities, Cost or Amortized Cost | 266,574 | |
Cost or amortized cost | $ 901,009 | $ 894,468 |
Investments, Net Realized and U
Investments, Net Realized and Unrealized Gains (Losses) on Investments (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Components of net realized and unrealized gains (losses) on investments [Abstract] | |||
Gross gains on available-for-sale fixed income securities during the period | $ 4,151 | $ 2,652 | |
Gross losses on available-for-sale fixed income securities during the period | (1,965) | (4,741) | |
Impairment losses on investments | (82) | (40) | |
Change in value of limited partnership investments | 448 | (676) | |
Gains (losses) on equity securities [Abstract] | |||
Realized gains (losses) on equity securities sold during the period | 153 | (2,698) | |
Unrealized gains (losses) on equity securities held at the end of the period | 7,804 | (22,253) | |
Realized and unrealized gains (losses) on equity securities during the period | 7,957 | (24,951) | |
Net realized and unrealized gains (losses) on investments | 10,509 | $ (27,756) | |
Recorded write down to earnings | 82 | ||
Allowance for credit losses | 825 | $ 1,035 | |
Reduction in allowance for credit losses | (210) | ||
Undistributed earnings, net of tax | $ 4,201 |
Reinsurance (Details)
Reinsurance (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Reinsurance [Abstract] | ||
Premiums ceded to reinsurers | $ 26,886 | $ 28,467 |
Losses and loss expenses ceded to reinsurers | 16,986 | 23,536 |
Commissions from reinsurers | $ 6,867 | $ 7,528 |
Loss and Loss Expense Reserve_2
Loss and Loss Expense Reserves (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Activity in the reserve for losses and loss expenses [Roll Forward] | ||
Reserves, gross of reinsurance recoverable, at the beginning of the year | $ 1,089,669 | $ 988,305 |
Reinsurance recoverable on unpaid losses at the beginning of the year | 424,368 | 398,305 |
Reserves at the beginning of the year, net of reinsurance | 665,301 | 590,000 |
Provision for losses and loss expenses, net [Abstract] | ||
Claims occurring during the current period | 83,143 | 81,839 |
Claims occurring during prior periods | (825) | (8) |
Total incurred | 82,318 | 81,831 |
Loss and loss expense payments, net [Abstract] | ||
Claims occurring during the current period | 8,082 | 8,169 |
Claims occurring during prior periods | 52,847 | 61,812 |
Total paid | 60,929 | 69,981 |
Reserves at the end of the period, net of reinsurance | 686,690 | 601,850 |
Reinsurance recoverable on unpaid losses at the end of the period | 421,442 | 399,749 |
Reserves, gross of reinsurance recoverable, at the end of the period | $ 1,108,132 | $ 1,001,599 |
Segment Information (Details)
Segment Information (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021USD ($)Segment | Mar. 31, 2020USD ($) | |
Segment Information [Abstract] | ||
Number of reportable segments | Segment | 1 | |
Summary of Segment Revenue [Abstract] | ||
Net premiums earned | $ 122,853 | $ 109,659 |
Net investment income | 5,306 | 7,236 |
Net realized and unrealized gains (losses) on investments | 10,509 | (27,756) |
Commissions and other income | 1,858 | 1,663 |
Total revenues | 140,526 | 90,802 |
Property and Casualty Insurance [Member] | ||
Summary of Segment Revenue [Abstract] | ||
Net premiums earned | 122,853 | 109,659 |
Net investment income | 5,306 | 7,236 |
Net realized and unrealized gains (losses) on investments | 10,509 | (27,756) |
Commissions and other income | 1,858 | 1,663 |
Total revenues | $ 140,526 | $ 90,802 |
Debt (Details)
Debt (Details) - Revolving Credit Facility [Member] $ in Thousands | 3 Months Ended | |
Mar. 31, 2021USD ($)Covenant | Aug. 09, 2018USD ($) | |
Credit Agreement [Abstract] | ||
Maximum credit limit | $ 40,000 | |
Additional incremental loans limit | $ 35,000 | |
Expiration date | Aug. 9, 2022 | |
Optional period of fixed interest | 1 year | |
Outstanding drawings | $ 20,000 | |
Effective interest rate | 1.21% | |
Amount remaining under credit facility | $ 20,000 | |
Number of financial covenants | Covenant | 2 | |
Net worth and maximum consolidated leverage ratio | 0.35 |
Taxes (Details)
Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Taxes [Abstract] | |||
Effective federal tax rate on consolidated loss | 20.90% | 11.90% | |
Valuation allowance | $ 0 | $ 0 | |
Years subject to examination | 2020 2019 2018 2017 |
Fair Value (Details)
Fair Value (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Fixed income securities [Abstract] | ||
Total, Fair Value | $ 914,949 | $ 919,692 |
Equity securities [Abstract] | ||
Total equity securities | 67,015 | 58,169 |
Recurring [Member] | ||
Fixed income securities [Abstract] | ||
Agency collateralized mortgage obligations | 11,821 | 11,931 |
Agency mortgage-backed securities | 114,822 | 102,107 |
Asset-backed securities | 102,638 | 107,696 |
Bank loans | 12,073 | 11,361 |
Collateralized mortgage obligations | 6,167 | 5,118 |
Corporate securities | 351,511 | 352,837 |
Options embedded in convertible securities | 10,931 | 7,404 |
Mortgage-backed securities | 38,612 | 38,056 |
Municipal obligations | 46,464 | 45,143 |
Non-U.S. government obligations | 30,648 | 30,600 |
U.S. government obligations | 189,262 | 207,439 |
Total, Fair Value | 914,949 | 919,692 |
Equity securities [Abstract] | ||
Consumer | 12,373 | 11,598 |
Energy | 1,661 | 1,227 |
Financial | 34,108 | 29,064 |
Industrial | 5,978 | 5,180 |
Technology | 3,669 | 2,851 |
Other | 9,226 | 8,249 |
Total equity securities | 67,015 | 58,169 |
Short-term investments | 1,000 | 1,000 |
Cash equivalents | 86,961 | 47,026 |
Total | 1,069,925 | 1,025,887 |
Recurring [Member] | Level 1 [Member] | ||
Fixed income securities [Abstract] | ||
Agency collateralized mortgage obligations | 0 | 0 |
Agency mortgage-backed securities | 0 | 0 |
Asset-backed securities | 0 | 0 |
Bank loans | 0 | 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, Fair Value | 0 | 0 |
Equity securities [Abstract] | ||
Consumer | 12,373 | 11,598 |
Energy | 1,661 | 1,227 |
Financial | 34,108 | 29,064 |
Industrial | 5,978 | 5,180 |
Technology | 3,669 | 2,851 |
Other | 9,226 | 8,249 |
Total equity securities | 67,015 | 58,169 |
Short-term investments | 1,000 | 1,000 |
Cash equivalents | 0 | 0 |
Total | 68,015 | 59,169 |
Recurring [Member] | Level 2 [Member] | ||
Fixed income securities [Abstract] | ||
Agency collateralized mortgage obligations | 11,821 | 11,931 |
Agency mortgage-backed securities | 114,822 | 102,107 |
Asset-backed securities | 102,638 | 107,696 |
Bank loans | 12,073 | 11,361 |
Collateralized mortgage obligations | 6,167 | 5,118 |
Corporate securities | 351,511 | 352,837 |
Options embedded in convertible securities | 10,931 | 7,404 |
Mortgage-backed securities | 38,612 | 38,056 |
Municipal obligations | 46,464 | 45,143 |
Non-U.S. government obligations | 30,648 | 30,600 |
U.S. government obligations | 189,262 | 207,439 |
Total, Fair Value | 914,949 | 919,692 |
Equity securities [Abstract] | ||
Consumer | 0 | 0 |
Energy | 0 | 0 |
Financial | 0 | 0 |
Industrial | 0 | 0 |
Technology | 0 | 0 |
Other | 0 | 0 |
Total equity securities | 0 | 0 |
Short-term investments | 0 | 0 |
Cash equivalents | 86,961 | 47,026 |
Total | 1,001,910 | 966,718 |
Recurring [Member] | Level 3 [Member] | ||
Fixed income securities [Abstract] | ||
Agency collateralized mortgage obligations | 0 | 0 |
Agency mortgage-backed securities | 0 | 0 |
Asset-backed securities | 0 | 0 |
Bank loans | 0 | 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, Fair Value | 0 | 0 |
Equity securities [Abstract] | ||
Consumer | 0 | 0 |
Energy | 0 | 0 |
Financial | 0 | 0 |
Industrial | 0 | 0 |
Technology | 0 | 0 |
Other | 0 | 0 |
Total equity securities | 0 | 0 |
Short-term investments | 0 | 0 |
Cash equivalents | 0 | 0 |
Total | $ 0 | $ 0 |
Fair Value, Balance Sheet Group
Fair Value, Balance Sheet Grouping (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Assets [Abstract] | ||
Limited partnerships | $ 7,476 | $ 7,214 |
Carrying Value [Member] | ||
Assets [Abstract] | ||
Limited partnerships | 7,476 | 7,214 |
Commercial mortgage loans | 10,866 | 10,602 |
Liabilities [Abstract] | ||
Short-term borrowings | 20,000 | 20,000 |
Fair Value [Member] | ||
Assets [Abstract] | ||
Limited partnerships | 7,476 | 7,214 |
Commercial mortgage loans | 11,688 | 11,425 |
Liabilities [Abstract] | ||
Short-term borrowings | 20,000 | 20,000 |
Fair Value [Member] | Level 1 [Member] | ||
Assets [Abstract] | ||
Limited partnerships | 0 | 0 |
Commercial mortgage loans | 0 | 0 |
Liabilities [Abstract] | ||
Short-term borrowings | 0 | 0 |
Fair Value [Member] | Level 2 [Member] | ||
Assets [Abstract] | ||
Limited partnerships | 0 | 0 |
Commercial mortgage loans | 0 | 0 |
Liabilities [Abstract] | ||
Short-term borrowings | 20,000 | 20,000 |
Fair Value [Member] | Level 3 [Member] | ||
Assets [Abstract] | ||
Limited partnerships | 7,476 | 7,214 |
Commercial mortgage loans | 11,688 | 11,425 |
Liabilities [Abstract] | ||
Short-term borrowings | $ 0 | $ 0 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) $ / shares in Units, $ in Thousands | Jul. 06, 2020shares | Nov. 05, 2019USD ($)Manager | May 22, 2019shares | Nov. 13, 2018shares | Mar. 31, 2021USD ($)$ / sharesshares | Dec. 31, 2019shares |
Stock Based Compensation [Abstract] | ||||||
Shares distribution period from grant date | 1 year | |||||
5/7/2019 [Member] | ||||||
Summary of stock Issuances [Abstract] | ||||||
Number of shares issued (in shares) | 29,536 | |||||
Vesting date | May 7, 2020 | |||||
Service period, beginning | Jul. 1, 2019 | |||||
Service period, ending | Jun. 30, 2020 | |||||
Grant date fair value per share (in dollars per share) | $ / shares | $ 16.25 | |||||
5/17/2019 [Member] | ||||||
Summary of stock Issuances [Abstract] | ||||||
Number of shares issued (in shares) | 3,591 | |||||
Vesting date | May 7, 2020 | |||||
Service period, beginning | Jul. 1, 2019 | |||||
Service period, ending | Jun. 30, 2020 | |||||
Grant date fair value per share (in dollars per share) | $ / shares | $ 16.25 | |||||
5/22/2019 [Member] | ||||||
Summary of stock Issuances [Abstract] | ||||||
Number of shares issued (in shares) | 3,541 | |||||
Vesting date | May 7, 2020 | |||||
Service period, beginning | Jul. 1, 2019 | |||||
Service period, ending | Jun. 30, 2020 | |||||
Grant date fair value per share (in dollars per share) | $ / shares | $ 16.25 | |||||
5/5/2020 [Member] | ||||||
Summary of stock Issuances [Abstract] | ||||||
Number of shares issued (in shares) | 42,220 | |||||
Vesting date | May 5, 2021 | |||||
Service period, beginning | Jul. 1, 2020 | |||||
Service period, ending | Jun. 30, 2021 | |||||
Grant date fair value per share (in dollars per share) | $ / shares | $ 14.21 | |||||
Restricted [Member] | John D. Nichols, Jr. [Member] | ||||||
Summary of stock Issuances [Abstract] | ||||||
Number of shares issued (in shares) | 85,000 | |||||
Restricted [Member] | John D. Nichols, Jr. [Member] | Tranche One [Member] | ||||||
Summary of stock Issuances [Abstract] | ||||||
Number of shares vested and expected to vest (in shares) | 42,500 | |||||
Stock based compensation expense | $ | $ 183 | |||||
Restricted [Member] | John D. Nichols, Jr. [Member] | Tranche Two [Member] | ||||||
Summary of stock Issuances [Abstract] | ||||||
Number of shares vested and expected to vest (in shares) | 21,250 | |||||
Restricted [Member] | John D. Nichols, Jr. [Member] | Tranche Three [Member] | ||||||
Summary of stock Issuances [Abstract] | ||||||
Number of shares vested and expected to vest (in shares) | 21,250 | |||||
Restricted [Member] | Edgecliffe-Johnson Stock Grant [Member] | ||||||
Summary of stock Issuances [Abstract] | ||||||
Number of shares issued (in shares) | 70,000 | |||||
Stock based compensation expense | $ | 399 | |||||
Restricted [Member] | Edgecliffe-Johnson Stock Grant [Member] | Tranche One [Member] | ||||||
Summary of stock Issuances [Abstract] | ||||||
Number of shares vested and expected to vest (in shares) | 35,000 | |||||
Restricted [Member] | Edgecliffe-Johnson Stock Grant [Member] | Tranche Two [Member] | ||||||
Summary of stock Issuances [Abstract] | ||||||
Number of shares vested and expected to vest (in shares) | 21,000 | |||||
Restricted [Member] | Edgecliffe-Johnson Stock Grant [Member] | Tranche Three [Member] | ||||||
Summary of stock Issuances [Abstract] | ||||||
Number of shares vested and expected to vest (in shares) | 14,000 | |||||
Restricted [Member] | Senior Management [Member] | ||||||
Summary of stock Issuances [Abstract] | ||||||
Number of shares issued (in shares) | 101,400 | |||||
Shares granted in period | $ | $ 1,100 | |||||
Stock based compensation expense | $ | 52 | |||||
Number of members awarded equity compensation | Manager | 7 | |||||
Restricted [Member] | Senior Management [Member] | 7/6/2020 [Member] | ||||||
Summary of stock Issuances [Abstract] | ||||||
Stock based compensation expense | $ | $ 328 | |||||
2018 LTIP Awards [Member] | Performance Based Equity Award [Member] | ||||||
Summary of stock Issuances [Abstract] | ||||||
Number of shares issued (in shares) | 0 | |||||
2018 VCIP Awards [Member] | Performance Based Equity Award [Member] | ||||||
Summary of stock Issuances [Abstract] | ||||||
Number of shares issued (in shares) | 0 | |||||
Performance period | 3 years | |||||
Vesting period | 3 years | |||||
2019 LTIP Awards [Member] | Performance Based Equity Award [Member] | ||||||
Summary of stock Issuances [Abstract] | ||||||
Stock based compensation expense | $ | $ 30 | |||||
Annual vesting percentage of shares in year one | 33.30% | |||||
Annual vesting percentage of shares in year two | 33.30% | |||||
Annual vesting percentage of shares in year three | 33.30% |
Litigation, Commitments and C_2
Litigation, Commitments and Contingencies (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2021 | Sep. 30, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Loss Contingency [Abstract] | ||||
Estimated recoverable amount | $ 455,462 | $ 455,564 | ||
Additional allowance for expected credit losses, net of tax | 0 | 0 | ||
ASU 2016-13 [Member] | ||||
Loss Contingency [Abstract] | ||||
Allowance for credit losses, before tax | 16,500 | $ 15,000 | ||
Allowance for credit losses, net of tax | 13,035 | $ 11,850 | ||
Allowance For Doubtful Accounts Receivable Period Increase Decrease, Before Tax | $ 1,500 | |||
Additional allowance for expected credit losses, net of tax | $ 1,185 | |||
Charge incurred to operations, gross | 30,500 | |||
Charge incurred to operations, net of tax | $ 24,095 | |||
Personnel Staffing Group d/b/a MVP Staffing [Member] | ||||
Loss Contingency [Abstract] | ||||
Per claim deductible amount | 500 | |||
Damages sought | $ 0 | |||
Percentage of required collateral | 110.00% | |||
Deductible receivables | $ 24,068 | |||
Average monthly deductible invoices | 778 | |||
Estimated recoverable amount | 47,000 | |||
Personnel Staffing Group d/b/a MVP Staffing [Member] | Minimum [Member] | ||||
Loss Contingency [Abstract] | ||||
Loss fund | $ 4,000 |
Shareholders' Equity (Details)
Shareholders' Equity (Details) | 3 Months Ended |
Mar. 31, 2021shares | |
Stock Repurchase Program [Abstract] | |
Stock repurchase program, shares authorized (in shares) | 2,464,209 |
Repurchase of common stock (in shares) | 0 |
Shareholders' Equity, Changes i
Shareholders' Equity, Changes in Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance at December 31, 2020 | $ 363,082 | $ 364,316 |
Other comprehensive income (loss) before reclassifications | (8,492) | (20,943) |
Amounts reclassified from accumulated other comprehensive income (loss) | (501) | (605) |
Other comprehensive loss | (8,993) | (21,548) |
Ending balance | 366,678 | 305,383 |
Other Comprehensive Income (Loss) [Member] | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance at December 31, 2020 | 21,759 | 9,369 |
Ending balance | 12,766 | (12,179) |
Foreign Currency [Member] | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance at December 31, 2020 | (245) | (494) |
Other comprehensive income (loss) before reclassifications | 88 | (687) |
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | 0 |
Other comprehensive loss | 88 | (687) |
Ending balance | (157) | (1,181) |
Unrealized Holding Gains (Losses) on Available-for-sale Securities [Member] | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance at December 31, 2020 | 22,004 | 9,863 |
Other comprehensive income (loss) before reclassifications | (8,580) | (20,256) |
Amounts reclassified from accumulated other comprehensive income (loss) | (501) | (605) |
Other comprehensive loss | (9,081) | (20,861) |
Ending balance | $ 12,923 | $ (10,998) |
Related Parties (Details)
Related Parties (Details) - Investment Firm Services [Member] $ in Thousands | 3 Months Ended | |
Mar. 31, 2021USD ($)Director | Mar. 31, 2020USD ($) | |
Related Party [Abstract] | ||
Management fees and commissions | $ 8 | $ 37 |
Director [Member] | ||
Related Party [Abstract] | ||
Number of related parties | Director | 1 | |
Market value of equity and fixed maturity securities portfolio | $ 8,857 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event [Member] | May 04, 2021$ / shares |
Subsequent Event [Abstract] | |
Dividend payable, date declared | May 4, 2021 |
Dividend payable, date to be paid | Jun. 1, 2021 |
Dividend payable, date of record | May 18, 2021 |
Class A [Member] | |
Subsequent Event [Abstract] | |
Dividend payable (in dollars per share) | $ 0.10 |
Class B [Member] | |
Subsequent Event [Abstract] | |
Dividend payable (in dollars per share) | $ 0.10 |