Investments (Tables)
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3 Months Ended |
Mar. 31, 2017 |
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| Investments, Debt and Equity Securities [Abstract] |
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| Schedule of Fixed Maturity and Equity Securities Available-for-Sale |
The following tables provide information relating to investments in fixed maturity and equity securities (in thousands): | | | | | | | | | | | | | | | | | | March 31, 2017 | | Amortized Cost | | Unrealized Gains | | Unrealized Losses | | Fair Value | Fixed maturity securities | | | | | | | | | U.S. Government and government agencies | | $ | 15,720 |
| | $ | 198 |
| | $ | (64 | ) | | $ | 15,854 |
| States, municipalities and political subdivisions | | 375,894 |
| | 7,760 |
| | (2,944 | ) | | 380,710 |
| Foreign government | | 6,368 |
| | — |
| | (497 | ) | | 5,871 |
| Residential mortgage-backed securities | | 129,664 |
| | 5,091 |
| | (2,498 | ) | | 132,257 |
| Commercial mortgage-backed securities | | 40,689 |
| | 379 |
| | (173 | ) | | 40,895 |
| Asset-backed securities | | 96,593 |
| | 830 |
| | (916 | ) | | 96,507 |
| Corporate and other | | 599,602 |
| | 32,924 |
| | (2,071 | ) | | 630,455 |
| Total fixed maturity securities | | $ | 1,264,530 |
| | $ | 47,182 |
| | $ | (9,163 | ) | | $ | 1,302,549 |
| Equity securities | | | | | | | | | Common stocks | | $ | 16,797 |
| | $ | 44 |
| | $ | (2,627 | ) | | $ | 14,214 |
| Perpetual preferred stocks | | 37,033 |
| | 701 |
| | (51 | ) | | 37,683 |
| Total equity securities | | $ | 53,830 |
| | $ | 745 |
| | $ | (2,678 | ) | | $ | 51,897 |
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| | | | | | | | | | | | | | | | | | December 31, 2016 | | Amortized Cost | | Unrealized Gains | | Unrealized Losses | | Fair Value | Fixed maturity securities | | | | | | | | | U.S. Government and government agencies | | $ | 15,910 |
| | $ | 135 |
| | $ | (95 | ) | | $ | 15,950 |
| States, municipalities and political subdivisions | | 374,527 |
| | 4,408 |
| | (3,858 | ) | | 375,077 |
| Foreign government | | 6,380 |
| | — |
| | (402 | ) | | 5,978 |
| Residential mortgage-backed securities | | 136,126 |
| | 2,634 |
| | (564 | ) | | 138,196 |
| Commercial mortgage-backed securities | | 48,715 |
| | 427 |
| | (89 | ) | | 49,053 |
| Asset-backed securities | | 76,303 |
| | 1,934 |
| | (572 | ) | | 77,665 |
| Corporate and other | | 600,458 |
| | 23,635 |
| | (7,054 | ) | | 617,039 |
| Total fixed maturity securities | | $ | 1,258,419 |
| | $ | 33,173 |
| | $ | (12,634 | ) | | $ | 1,278,958 |
| | | | | | | | | |
| | | | | | | | | | | | | | | | | | Equity securities | | | | | | | | | Common stocks | | $ | 16,236 |
| | $ | — |
| | $ | (1,371 | ) | | $ | 14,865 |
| Perpetual preferred stocks | | 37,041 |
| | 191 |
| | (578 | ) | | 36,654 |
| Total equity securities | | $ | 53,277 |
| | $ | 191 |
| | $ | (1,949 | ) | | $ | 51,519 |
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| Schedule of Maturities of Fixed Maturity Securities Available-for-Sale |
The amortized cost and fair value of fixed maturity securities available-for-sale as of March 31, 2017 are shown by contractual maturity in the table below (in thousands). Actual maturities can differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Asset and mortgage-backed securities are shown separately in the table below, as they are not due at a single maturity date: | | | | | | | | | | | | Amortized Cost | | Fair Value | Corporate, Municipal, U.S. Government and Other securities | | | | | Due in one year or less | | $ | 48,251 |
| | $ | 48,296 |
| Due after one year through five years | | 112,721 |
| | 117,770 |
| Due after five years through ten years | | 140,161 |
| | 143,746 |
| Due after ten years | | 696,451 |
| | 723,078 |
| Subtotal | | 997,584 |
| | 1,032,890 |
| Mortgage-backed securities | | 170,353 |
| | 173,152 |
| Asset-backed securities | | 96,593 |
| | 96,507 |
| Total | | $ | 1,264,530 |
| | $ | 1,302,549 |
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| Schedule of Major Industry Types of Fixed Maturity Holdings |
The tables below show the major industry types of the Company’s corporate and other fixed maturity securities (in thousands): | | | | | | | | | | | | | | | | | | | | | | | | | | March 31, 2017 | | December 31, 2016 | | | Amortized Cost | | Fair Value | | % of Total | | Amortized Cost | | Fair
Value | | % of
Total | Finance, insurance, and real estate | | $ | 203,453 |
| | $ | 207,732 |
| | 32.9 | % | | $ | 214,911 |
| | $ | 211,834 |
| | 34.3 | % | Transportation, communication and other services | | 177,685 |
| | 187,253 |
| | 29.7 | % | | 180,647 |
| | 189,163 |
| | 30.7 | % | Manufacturing | | 110,413 |
| | 117,647 |
| | 18.7 | % | | 112,644 |
| | 118,440 |
| | 19.2 | % | Other | | 108,051 |
| | 117,823 |
| | 18.7 | % | | 92,256 |
| | 97,602 |
| | 15.8 | % | Total | | $ | 599,602 |
| | $ | 630,455 |
| | 100.0 | % | | $ | 600,458 |
| | $ | 617,039 |
| | 100.0 | % |
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| Schedule of Unrealized Losses for Fixed Maturities and Equity Securities |
The following table presents the total unrealized losses for the 217 and 269 fixed maturity and equity securities held by the Company as of March 31, 2017 and December 31, 2016, respectively, where the estimated fair value had declined and remained below amortized cost by the indicated amount (in thousands): | | | | | | | | | | | | | | | | | | March 31, 2017 | | December 31, 2016 | | | Unrealized Losses | | % of Total | | Unrealized Losses | | % of
Total | Fixed maturity and equity securities | | | | | | | | | Less than 20% | | $ | (8,016 | ) | | 67.7 | % | | $ | (10,069 | ) | | 69.0 | % | 20% or more for less than six months | | (2,825 | ) | | 23.9 | % | | (482 | ) | | 3.3 | % | 20% or more for six months or greater | | (1,000 | ) | | 8.4 | % | | (4,032 | ) | | 27.7 | % | Total | | $ | (11,841 | ) | | 100.0 | % | | $ | (14,583 | ) | | 100.0 | % |
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| Schedule of Estimated Fair Value and Gross Unrealized Loss |
The following tables present the estimated fair values and gross unrealized losses for the 217 and 269 fixed maturity and equity securities held by the Company that have estimated fair values below amortized cost as of each of March 31, 2017 and December 31, 2016, respectively. The Company does not have any OTTI losses reported in AOCI. These investments are presented by investment category and the length of time the related fair value has remained below amortized cost (in thousands): | | | | | | | | | | | | | | | | | | | | | | | | | | March 31, 2017 | | Less than 12 months | | 12 months of greater | | Total | | Fair Value | | Unrealized Losses | | Fair
Value | | Unrealized Losses | | Fair
Value | | Unrealized Losses | Fixed maturity securities | | | | | | | | | | | | | U.S. Government and government agencies | | $ | 5,833 |
| | $ | (64 | ) | | $ | — |
| | $ | — |
| | $ | 5,833 |
| | $ | (64 | ) | States, municipalities and political subdivisions | | 114,135 |
| | (2,928 | ) | | 365 |
| | (16 | ) | | 114,500 |
| | (2,944 | ) | Foreign government | | — |
| | — |
| | 5,871 |
| | (497 | ) | | 5,871 |
| | (497 | ) | Residential mortgage-backed securities | | 35,648 |
| | (2,105 | ) | | 17,519 |
| | (393 | ) | | 53,167 |
| | (2,498 | ) | Commercial mortgage-backed securities | | 12,129 |
| | (56 | ) | | 2,181 |
| | (117 | ) | | 14,310 |
| | (173 | ) | Asset-backed securities | | 46,595 |
| | (442 | ) | | 11,924 |
| | (474 | ) | | 58,519 |
| | (916 | ) | Corporate and other | | 85,891 |
| | (2,017 | ) | | 3,370 |
| | (54 | ) | | 89,261 |
| | (2,071 | ) | Total fixed maturity securities | | $ | 300,231 |
| | $ | (7,612 | ) | | $ | 41,230 |
| | $ | (1,551 | ) | | $ | 341,461 |
| | $ | (9,163 | ) | Equity securities | | | | | | | | | | | | | Common stocks | | $ | 12,811 |
| | $ | (2,167 | ) | | $ | 518 |
| | $ | (460 | ) | | $ | 13,329 |
| | $ | (2,627 | ) | Perpetual preferred stocks | | 4,251 |
| | (51 | ) | | — |
| | — |
| | 4,251 |
| | (51 | ) | Total equity securities | | $ | 17,062 |
| | $ | (2,218 | ) | | $ | 518 |
| | $ | (460 | ) | | $ | 17,580 |
| | $ | (2,678 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2016 | | Less than 12 months | | 12 months of greater | | Total | | Fair
Value | | Unrealized Losses | | Fair
Value | | Unrealized Losses | | Fair
Value | | Unrealized Losses | Fixed maturity securities | | | | | | | | | | | | | U.S. Government and government agencies | | $ | 4,392 |
| | $ | (95 | ) | | $ | — |
| | $ | — |
| | $ | 4,392 |
| | $ | (95 | ) | States, municipalities and political subdivisions | | 207,740 |
| | (3,858 | ) | | — |
| | — |
| | 207,740 |
| | (3,858 | ) | Foreign government | | 5,978 |
| | (402 | ) | | — |
| | — |
| | 5,978 |
| | (402 | ) | Residential mortgage-backed securities | | 54,385 |
| | (564 | ) | | — |
| | — |
| | 54,385 |
| | (564 | ) | Commercial mortgage-backed securities | | 13,159 |
| | (89 | ) | | — |
| | — |
| | 13,159 |
| | (89 | ) | Asset-backed securities | | 12,443 |
| | (572 | ) | | — |
| | — |
| | 12,443 |
| | (572 | ) | Corporate and other | | 147,653 |
| | (3,022 | ) | | 3,579 |
| | (4,032 | ) | | 151,232 |
| | (7,054 | ) | Total fixed maturity securities | | $ | 445,750 |
| | $ | (8,602 | ) | | $ | 3,579 |
| | $ | (4,032 | ) | | $ | 449,329 |
| | $ | (12,634 | ) | Equity securities | | | | | | | | | | | | | Common stocks | | $ | 14,585 |
| | $ | (1,371 | ) | | $ | — |
| | $ | — |
| | $ | 14,585 |
| | $ | (1,371 | ) | Perpetual preferred stocks | | 20,464 |
| | (578 | ) | | — |
| | — |
| | 20,464 |
| | (578 | ) | Total equity securities | | $ | 35,049 |
| | $ | (1,949 | ) | | $ | — |
| | $ | — |
| | $ | 35,049 |
| | $ | (1,949 | ) |
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| Schedule of Other Invested Assets |
Carrying values of other invested assets accounted for under cost and equity method are as follows (in thousands): | | | | | | | | | | | | | | | | | | | | | | | | | | | | March 31, 2017 | | December 31, 2016 | | | Cost
Method | | Equity Method | | Fair Value | | Cost
Method | | Equity Method | | Fair
Value | Common Equity | | $ | 138 |
| | $ | 1,083 |
| | $ | — |
| | $ | 138 |
| | $ | 1,047 |
| | $ | — |
| Preferred Equity | | 2,484 |
| | 19,044 |
| | — |
| | 2,484 |
| | 9,971 |
| | — |
| Derivatives | | 3,097 |
| | — |
| | 3,694 |
| | 3,097 |
| | — |
| | 3,813 |
| Limited Partnerships | | — |
| | 1,007 |
| | — |
| | — |
| | 1,116 |
| | — |
| Joint Ventures | | — |
| | 50,033 |
| | — |
| | — |
| | 40,697 |
| | — |
| Total | | $ | 5,719 |
| | $ | 71,167 |
| | $ | 3,694 |
| | $ | 5,719 |
| | $ | 52,831 |
| | $ | 3,813 |
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| Summarized Information for Equity Method Investments |
Summarized information for the Company's equity method investments as of and for the three months ended March 31, 2017 is as follows (information for two of the investees is reported on a one month lag, in thousands): | | | | | | Net revenue | | $ | 120,862 |
| Gross profit | | $ | 38,258 |
| Income (loss) from continuing operations | | $ | (9,243 | ) | Net income (loss) | | $ | (16,292 | ) | | | | Current assets | | $ | 297,687 |
| Noncurrent assets | | $ | 282,415 |
| Current liabilities | | $ | 193,848 |
| Noncurrent liabilities | | $ | 137,345 |
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| Net Investment Income |
The major sources of net investment income were as follows (in thousands): | | | | | | | | | | | | Three Months Ended March 31, | | | 2017 | | 2016 | Fixed maturity securities, available-for-sale at fair value | | $ | 13,925 |
| | $ | 13,266 |
| Equity securities, available-for-sale at fair value | | 675 |
| | 572 |
| Mortgage loans | | 464 |
| | 17 |
| Policy loans | | 298 |
| | 297 |
| Other invested assets | | 4 |
| | 142 |
| Gross investment income | | 15,366 |
| | 14,294 |
| External investment expense | | (62 | ) | | (215 | ) | Net investment income | | $ | 15,304 |
| | $ | 14,079 |
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| Net Realized Gain (Loss) on Investments |
The major sources of net realized gains (losses) on investments were as follows (in thousands): | | | | | | | | | | | | Three Months Ended March 31, | | | 2017 | | 2016 | Realized gains on fixed maturity securities | | $ | 961 |
| | $ | 321 |
| Realized losses on fixed maturity securities | | (455 | ) | | (2,309 | ) | Realized gains on equity securities | | — |
| | 88 |
| Realized losses on equity securities | | — |
| | (352 | ) | Net realized gains (losses) on derivative instruments | | 275 |
| | (2,623 | ) | Net realized gains (losses) | | $ | 781 |
| | $ | (4,875 | ) |
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