Ontario, Canada | Not Applicable | |||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
45 St. Clair Avenue West, Suite 400 Toronto, Ontario | M4V 1K9 | |||
(Address of principal executive offices) | (Zip Code) |
Title of Each Class | Name of Each Exchange on Which Registered |
Common Stock, no par value | New York Stock Exchange |
KINGSWAY FINANCIAL SERVICES INC. |
Table Of Contents | ||
Caution Regarding Forward-Looking Statements | ||
PART I | ||
Item 1. Business | ||
Item 1A. Risk Factors | ||
Item IB. Unresolved Staff Comments | ||
Item 2. Properties | ||
Item 3. Legal Proceedings | ||
Item 4. Mine Safety Disclosures | ||
PART II | ||
Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities | ||
Item 6. Selected Financial Data | ||
Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations | ||
Item 7A. Quantitative and Qualitative Disclosures About Market Risk | ||
Item 8. Financial Statements and Supplementary Data | ||
Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure | ||
Item 9A. Controls and Procedures | ||
Item 9B. Other Information | ||
PART III | ||
Item 10. Directors, Executive Officers, and Corporate Governance | ||
Item 11. Executive Compensation | ||
Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters | ||
Item 13. Certain Relationships and Related Transactions, and Director Independence | ||
Item 14. Principal Accounting Fees and Services | ||
PART IV | ||
Item 15. Exhibits, Financial Statement Schedules | ||
SIGNATURES | ||
EXHIBIT INDEX |
2 |
KINGSWAY FINANCIAL SERVICES INC. |
• | its results of operations and financial condition (including, among other things, premium volume, premium rates, net and operating income, investment income and performance, return on equity, and expected current returns and combined ratios); |
• | changes in facts and circumstances affecting assumptions used in determining the provision for unpaid loss and loss adjustment expenses; |
• | the number and severity of insurance claims (including those associated with catastrophe losses) and their impact on the adequacy of the provision for unpaid loss and loss adjustment expenses; |
• | the impact of emerging claims issues as well as other insurance and non-insurance litigation; |
• | orders, interpretations or other actions by regulators that impact the reporting, adjustment and payment of claims; |
• | changes in industry trends and significant industry developments; |
• | uncertainties related to regulatory approval of insurance rates, policy forms, license applications and similar matters; |
• | the impact of certain guarantees made by the Company; |
• | the ability to complete current or future acquisitions successfully; |
• | the ability to successfully implement our restructuring activities; and |
• | strategic initiatives. |
3 |
KINGSWAY FINANCIAL SERVICES INC. |
4 |
KINGSWAY FINANCIAL SERVICES INC. |
5 |
KINGSWAY FINANCIAL SERVICES INC. |
2015 | % of Total | 2014 | % of Total | |||||
Private passenger auto liability | 78,811 | 67.7 | % | 76,487 | 67.1 | % | ||
Auto physical damage | 37,592 | 32.3 | % | 37,515 | 32.9 | % | ||
Total gross premiums written | 116,403 | 100.0 | % | 114,002 | 100.0 | % |
2015 | % of Total | 2014 | % of Total | |||||
Florida | 27,935 | 24.0 | % | 21,440 | 18.8 | % | ||
Texas | 18,989 | 16.3 | % | 20,142 | 17.7 | % | ||
Illinois | 18,265 | 15.7 | % | 17,786 | 15.6 | % | ||
California | 12,046 | 10.3 | % | 11,363 | 10.0 | % | ||
Nevada | 11,572 | 9.9 | % | 10,863 | 9.5 | % | ||
Colorado | 10,027 | 8.6 | % | 11,033 | 9.7 | % | ||
Other | 17,569 | 15.2 | % | 21,375 | 18.7 | % | ||
Total gross premiums written | 116,403 | 100.0 | % | 114,002 | 100.0 | % |
6 |
KINGSWAY FINANCIAL SERVICES INC. |
• | identify markets that are most likely to produce an underwriting profit; |
• | operate with a disciplined underwriting approach; |
• | practice prudent claims management; |
• | establish an appropriate provision for unpaid loss and loss adjustment expenses; |
• | strive for cost containment and the economics of shared support functions where deemed appropriate; and |
• | provide our independent agents and brokers with competitive commissions, an ease of doing business and additional value-added products and services for them and their customers. |
7 |
KINGSWAY FINANCIAL SERVICES INC. |
8 |
KINGSWAY FINANCIAL SERVICES INC. |
9 |
KINGSWAY FINANCIAL SERVICES INC. |
10 |
KINGSWAY FINANCIAL SERVICES INC. |
11 |
KINGSWAY FINANCIAL SERVICES INC. |
• | trends in jury awards; |
• | changes in the underlying court system and its philosophy; |
• | changes in case law; |
• | litigation trends; |
• | frequency of claims with payment capped by policy limits; |
• | change in average severity of accidents, or proportion of severe accidents; |
• | subrogation opportunities; |
• | degree of patient responsiveness to treatment; |
• | changes in claim handling philosophies; |
• | effectiveness of no-fault laws; |
• | frequency of visits to health providers; |
• | number of medical procedures given during visits to health providers; |
• | types of health providers used; |
• | types of medical treatments received; |
• | changes in cost of medical treatments; |
• | changes in policy provisions (e.g., deductibles, policy limits, endorsements, etc.); |
• | changes in underwriting standards; and |
• | changes in the use of credit data for rating and underwriting. |
12 |
KINGSWAY FINANCIAL SERVICES INC. |
2015 | 2014 | 2013 | 2012 | 2011 | 2010 | 2009 | 2008 | 2007 | 2006 | 2005 | ||||||||||||
Property and casualty unpaid loss and loss adjustment expenses originally established - end of year, gross | 55,471 | 63,895 | 84,534 | 103,116 | 120,258 | 174,708 | 186,685 | 183,151 | 197,951 | 119,150 | 106,825 | |||||||||||
Less: reinsurance recoverable on property and casualty unpaid loss and loss adjustment expenses | 1,207 | 3,203 | 7,942 | 5,478 | 298 | 7,974 | — | 499 | 327 | 301 | 481 | |||||||||||
Property and casualty unpaid loss and loss adjustment expenses originally established - end of year, net | 54,264 | 60,692 | 76,592 | 97,638 | 119,960 | 166,734 | 186,685 | 182,652 | 197,624 | 118,849 | 106,344 | |||||||||||
Cumulative net paid as of: | ||||||||||||||||||||||
One year later | 39,068 | 42,428 | 53,426 | 70,046 | 105,201 | 111,676 | 107,139 | 108,615 | 48,817 | 50,040 | ||||||||||||
Two years later | 56,746 | 72,091 | 99,444 | 141,165 | 155,494 | 156,753 | 150,535 | 75,525 | 71,018 | |||||||||||||
Three years later | 81,279 | 108,966 | 162,233 | 175,318 | 180,437 | 174,313 | 90,925 | 83,889 | ||||||||||||||
Four years later | 115,386 | 170,194 | 188,024 | 190,763 | 183,621 | 98,801 | 91,333 | |||||||||||||||
Five years later | 174,897 | 192,260 | 196,034 | 186,908 | 101,392 | 94,894 | ||||||||||||||||
Six years later | 195,048 | 197,798 | 188,791 | 102,749 | 96,144 | |||||||||||||||||
Seven years later | 198,905 | 189,399 | 103,020 | 97,365 | ||||||||||||||||||
Eight years later | 190,133 | 103,295 | 97,560 | |||||||||||||||||||
Nine years later | 103,571 | 97,684 | ||||||||||||||||||||
Ten years later | 97,950 | |||||||||||||||||||||
Re-estimated liability as of: | ||||||||||||||||||||||
One year later | 61,308 | 71,471 | 96,459 | 133,790 | 174,640 | 201,086 | 184,462 | 190,176 | 108,978 | 105,095 | ||||||||||||
Two years later | 69,787 | 90,193 | 133,793 | 185,019 | 201,978 | 197,621 | 186,915 | 104,908 | 98,230 | |||||||||||||
Three years later | 89,578 | 127,131 | 187,144 | 206,787 | 197,961 | 193,305 | 106,018 | 96,552 | ||||||||||||||
Four years later | 125,930 | 182,517 | 209,636 | 200,983 | 191,902 | 106,835 | 97,618 | |||||||||||||||
Five years later | 181,774 | 206,123 | 201,276 | 191,969 | 105,977 | 98,024 | ||||||||||||||||
Six years later | 205,593 | 197,705 | 192,913 | 105,992 | 98,340 | |||||||||||||||||
Seven years later | 197,169 | 188,604 | 105,942 | 99,079 | ||||||||||||||||||
Eight years later | 188,487 | 104,164 | 99,340 | |||||||||||||||||||
Nine years later | 103,894 | 98,764 | ||||||||||||||||||||
Ten years later | 98,576 | |||||||||||||||||||||
As of December 31, 2015: Cumulative deficiency (redundancy) | 616 | (6,805 | ) | (8,060 | ) | 5,970 | 15,040 | 18,908 | 14,517 | (9,137 | ) | (14,955 | ) | (7,768 | ) | |||||||
Cumulative deficiency (redundancy) as a % of property and casualty unpaid loss and loss adjustment expenses originally established - net | 1.0 | % | (8.9 | )% | (8.3 | )% | 5.0 | % | 9.0 | % | 10.1 | % | 7.9 | % | (4.6 | )% | (12.6 | )% | (7.3 | )% | ||
Re-estimated liability - gross | 61,308 | 69,787 | 89,578 | 125,930 | 189,221 | 205,593 | 197,169 | 188,487 | 103,894 | 98,576 | ||||||||||||
Less: re-established reinsurance recoverable | — | — | — | — | 7,447 | — | — | — | — | — | ||||||||||||
Re-estimated provision - net | 61,308 | 69,787 | 89,578 | 125,930 | 181,774 | 205,593 | 197,169 | 188,487 | 103,894 | 98,576 | ||||||||||||
Cumulative deficiency (redundancy) - gross | (2,587 | ) | (14,747 | ) | (13,538 | ) | 5,672 | 14,513 | 18,908 | 14,018 | (9,464 | ) | (15,256 | ) | (8,249 | ) | ||||||
% of property and casualty unpaid loss and loss adjustment expenses originally established - gross | (4.0 | )% | (17.4 | )% | (13.1 | )% | 4.7 | % | 8.3 | % | 10.1 | % | 7.7 | % | (4.8 | )% | (12.8 | )% | (7.7 | )% |
13 |
KINGSWAY FINANCIAL SERVICES INC. |
2015 | 2014 | |||||
Balance at beginning of period, gross | 63,895 | 84,534 | ||||
Less reinsurance recoverable related to property and casualty unpaid loss and loss adjustment expenses | 3,203 | 7,942 | ||||
Balance at beginning of period, net | 60,692 | 76,592 | ||||
Incurred related to: | ||||||
Current year | 86,439 | 84,577 | ||||
Prior years | 616 | (5,123 | ) | |||
Paid related to: | ||||||
Current year | (54,415 | ) | (52,521 | ) | ||
Prior years | (39,068 | ) | (42,428 | ) | ||
Disposal of unpaid loss and loss adjustment expenses related to PIH | — | (405 | ) | |||
Balance at end of period, net | 54,264 | 60,692 | ||||
Plus reinsurance recoverable related to property and casualty unpaid loss and loss adjustment expenses | 1,207 | 3,203 | ||||
Balance at end of period, gross | 55,471 | 63,895 |
14 |
KINGSWAY FINANCIAL SERVICES INC. |
A+ | 65.0 | % |
A- | 35.0 | % |
Total | 100.0 | % |
2015 | 2014 | |||||||
Principal | Fair Value | Principal | Fair Value | |||||
LROC preferred units due 2015 | — | — | 13,618 | 13,618 | ||||
Subordinated debt | 90,500 | 39,898 | 90,500 | 40,659 | ||||
Total | 90,500 | 39,898 | 104,118 | 54,277 |
15 |
KINGSWAY FINANCIAL SERVICES INC. |
16 |
KINGSWAY FINANCIAL SERVICES INC. |
17 |
KINGSWAY FINANCIAL SERVICES INC. |
• | our ability to engage in acquisitions without raising additional equity or obtaining additional debt financing could be limited; |
• | our ability to obtain additional financing for working capital, capital expenditures, acquisitions, debt service requirements or general corporate purposes and our ability to satisfy our obligations with respect to our debt may be impaired in the future; |
• | a large portion of our cash flow must be dedicated to the payment of principal and interest on our debt, thereby reducing the funds available to us for other purposes; |
• | we are exposed to the risk of increased interest rates because our outstanding subordinated debt, representing $90.5 million of principal value, bears interest directly related to the London interbank offered interest rate for three-month U.S. dollar deposits ("LIBOR"); |
• | it may be more difficult for us to satisfy our obligations to our creditors, resulting in possible defaults on, and acceleration of, such debt; |
• | we may be more vulnerable to general adverse economic and industry conditions; |
• | we may be at a competitive disadvantage compared to our competitors with proportionately less debt or with comparable debt on more favorable terms and, as a result, they may be better positioned to withstand economic downturns; |
• | our ability to refinance debt may be limited or the associated costs may increase; |
• | our flexibility to adjust to changing market conditions and ability to withstand competitive pressures could be limited; and |
• | we may be prevented from carrying out capital spending that is, among other things, necessary or important to our growth strategy and efforts to improve the operating results of our businesses. |
18 |
KINGSWAY FINANCIAL SERVICES INC. |
19 |
KINGSWAY FINANCIAL SERVICES INC. |
• | rate-setting; |
• | risk-based capital and solvency standards; |
• | restrictions on the amount, type, nature, quality and quantity of investments; |
• | the maintenance of adequate provisions for unearned premiums and unpaid loss and loss adjustment expenses; |
• | restrictions on the types of terms that can be included in insurance policies; |
• | standards for accounting; |
• | marketing practices; |
• | claims-settlement practices; |
20 |
KINGSWAY FINANCIAL SERVICES INC. |
• | the examination of insurance companies by regulatory authorities, including periodic financial and market conduct examinations; |
• | the licensing of insurers and their agents; |
• | limitations on dividends and transactions with affiliates; |
• | approval of certain reinsurance transactions; and |
• | insolvency proceedings. |
• | requesting additional capital contributions from Kingsway to its insurance subsidiaries; and |
• | requiring more frequent reporting, including with respect to capital and liquidity positions. |
• | disputes over coverage or claims adjudication; |
• | disputes regarding sales practices, disclosure, premium refunds, licensing, regulatory compliance and compensation arrangements; |
• | disputes with our agents, producers or network providers over compensation and termination of contracts and related claims; |
• | disputes with taxing authorities regarding our tax liabilities; and |
• | disputes relating to certain businesses acquired or disposed of by us. |
21 |
KINGSWAY FINANCIAL SERVICES INC. |
22 |
KINGSWAY FINANCIAL SERVICES INC. |
• | difficulties in the integration of the acquired business; |
• | assumption of unknown material liabilities, including deficient provisions for unpaid loss and loss adjustment expenses; |
• | diversion of management's attention from other business concerns; |
• | failure to achieve financial or operating objectives; and |
• | potential loss of policyholders or key employees of acquired companies. |
• | identification of appropriate management to run the new business; |
• | understanding the strategic, competitive and marketplace dynamics of the new business and, perhaps, industry; |
• | establishment of proper financial and operational controls; |
• | diversion of management's attention from other business concerns; and |
• | failure to achieve financial or operating objectives. |
• | actuarial projections of the cost of settlement and administration of claims reflecting facts and circumstances then known; |
• | estimates of future trends in claims severity and frequency; |
• | legal theories of liability; |
• | variability in claims-handling procedures; |
23 |
KINGSWAY FINANCIAL SERVICES INC. |
• | economic factors such as inflation; |
• | judicial and legislative trends, actions such as class action lawsuits, and judicial interpretation of coverages or policy exclusions; and |
• | the level of insurance fraud. |
24 |
KINGSWAY FINANCIAL SERVICES INC. |
25 |
KINGSWAY FINANCIAL SERVICES INC. |
• | the availability of reliable data and our ability to properly analyze available data; |
• | the uncertainties that inherently characterize estimates and assumptions; |
• | our selection and application of appropriate pricing techniques; and |
• | changes in applicable legal liability standards and in the civil litigation system generally. |
26 |
KINGSWAY FINANCIAL SERVICES INC. |
27 |
KINGSWAY FINANCIAL SERVICES INC. |
28 |
KINGSWAY FINANCIAL SERVICES INC. |
TSX | NYSE | |||||||||||||||
High - C$ | Low - C$ | High - US$ | Low - US$ | |||||||||||||
2015 | ||||||||||||||||
Quarter 4 | C$ | 6.51 | C$ | 5.43 | $ | 4.90 | $ | 4.09 | ||||||||
Quarter 3 | 7.62 | 5.95 | 5.97 | 4.43 | ||||||||||||
Quarter 2 | 7.62 | 6.69 | 6.12 | 5.47 | ||||||||||||
Quarter 1 | 7.49 | 6.44 | 5.94 | 5.41 | ||||||||||||
2014 | ||||||||||||||||
Quarter 4 | 7.30 | 6.05 | 6.40 | 5.40 | ||||||||||||
Quarter 3 | 7.55 | 6.41 | 6.91 | 6.00 | ||||||||||||
Quarter 2 | 7.30 | 4.82 | 6.69 | 4.33 | ||||||||||||
Quarter 1 | 4.88 | 4.15 | 4.32 | 3.85 |
29 |
KINGSWAY FINANCIAL SERVICES INC. |
Equity Compensation Plan Information | |||
Number of securities to be issued upon exercise of outstanding options, warrants and rights | Weighted-average exercise price of outstanding options, warrants and rights | Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a)) | |
Plan category | (a) | (b) | (c) |
Equity compensation plans approved by security holders | 611,875 | $4.50 | 40,000 |
Equity compensation plans not approved by security holders | N/A | N/A | N/A |
Total | 611,875 | $4.50 | 40,000 |
30 |
KINGSWAY FINANCIAL SERVICES INC. Management's Discussion and Analysis |
31 |
KINGSWAY FINANCIAL SERVICES INC. Management's Discussion and Analysis |
32 |
KINGSWAY FINANCIAL SERVICES INC. Management's Discussion and Analysis |
• | identifying all unrealized loss positions that have existed for at least six months; |
• | identifying other circumstances which management believes may impact the recoverability of the unrealized loss positions; |
• | obtaining a valuation analysis from third-party investment managers regarding the intrinsic value of these investments based on their knowledge and experience together with market-based valuation techniques; |
• | reviewing the trading range of certain investments over the preceding calendar period; |
• | assessing if declines in market value are other-than-temporary for debt instruments based on the investment grade credit ratings from third-party rating agencies; |
• | assessing if declines in market value are other-than-temporary for any debt instrument with a non-investment grade credit rating based on the continuity of its debt service record; |
• | determining the necessary provision for declines in market value that are considered other-than-temporary based on the analyses performed; and |
• | assessing the Company's ability and intent to hold these investments at least until the investment impairment is recovered. |
• | the opinions of professional investment managers could be incorrect; |
33 |
KINGSWAY FINANCIAL SERVICES INC. Management's Discussion and Analysis |
• | the past trading patterns of individual investments may not reflect future valuation trends; |
• | the credit ratings assigned by independent credit rating agencies may be incorrect due to unforeseen or unknown facts related to a company's financial situation; and |
• | the debt service pattern of non-investment grade instruments may not reflect future debt service capabilities and may not reflect a company's unknown underlying financial problems. |
34 |
KINGSWAY FINANCIAL SERVICES INC. Management's Discussion and Analysis |
35 |
KINGSWAY FINANCIAL SERVICES INC. Management's Discussion and Analysis |
2015 | 2014 | Change | ||||
Segment operating (loss) income | ||||||
Insurance Underwriting | (1,147 | ) | 1,290 | (2,437 | ) | |
Insurance Services | (628 | ) | 206 | (834 | ) | |
Total segment operating (loss) income | (1,775 | ) | 1,496 | (3,271 | ) | |
Net investment income | 2,918 | 1,616 | 1,302 | |||
Net realized gains | 1,197 | 5,041 | (3,844 | ) | ||
Other-than-temporary impairment loss | (10 | ) | — | (10 | ) | |
Other income and expenses not allocated to segments, net | (3,753 | ) | (4,887 | ) | 1,134 | |
Amortization of intangible assets | (1,244 | ) | (1,620 | ) | 376 | |
Contingent consideration benefit | 1,139 | 2,223 | (1,084 | ) | ||
Impairment of asset held for sale | — | (1,180 | ) | 1,180 | ||
Interest expense | (5,278 | ) | (5,645 | ) | 367 | |
Foreign exchange losses, net | (1,215 | ) | (419 | ) | (796 | ) |
Gain (loss) on change in fair value of debt | 1,458 | (10,953 | ) | 12,411 | ||
Loss on disposal of subsidiary | — | (1,244 | ) | 1,244 | ||
Loss on disposal of asset held for sale | — | (125 | ) | 125 | ||
Loss on deconsolidation of subsidiary | (4,420 | ) | — | (4,420 | ) | |
Equity in net loss of investee | (339 | ) | (190 | ) | (149 | ) |
Loss from continuing operations before income tax expense (benefit) | (11,322 | ) | (15,887 | ) | 4,565 | |
Income tax expense (benefit) | 93 | (1,221 | ) | 1,314 | ||
Loss from continuing operations | (11,415 | ) | (14,666 | ) | 3,251 | |
Income from discontinued operations, net of taxes | 1,417 | 3,442 | (2,025 | ) | ||
Gain on disposal of discontinued operations, net of taxes | 11,267 | — | 11,267 | |||
Net income (loss) | 1,269 | (11,224 | ) | 12,493 |
36 |
KINGSWAY FINANCIAL SERVICES INC. Management's Discussion and Analysis |
37 |
KINGSWAY FINANCIAL SERVICES INC. Management's Discussion and Analysis |
38 |
KINGSWAY FINANCIAL SERVICES INC. Management's Discussion and Analysis |
39 |
KINGSWAY FINANCIAL SERVICES INC. Management's Discussion and Analysis |
Type of investment | 2015 | % of Total | 2014 | % of Total | ||||||||
Fixed maturities: | ||||||||||||
U.S. government, government agencies and authorities | 20,453 | 12.8 | % | 20,759 | 13.1 | % | ||||||
Canadian government | — | — | % | 4,242 | 2.7 | % | ||||||
States, municipalities and political subdivisions | 2,256 | 1.4 | % | 3,419 | 2.2 | % | ||||||
Mortgage-backed | 7,963 | 5.0 | % | 5,352 | 3.4 | % | ||||||
Asset-backed securities and collateralized mortgage obligations | 6,023 | 3.8 | % | 7,214 | 4.6 | % | ||||||
Corporate | 18,864 | 11.8 | % | 15,209 | 9.6 | % | ||||||
Total fixed maturities | 55,559 | 34.8 | % | 56,195 | 35.6 | % | ||||||
Equity investments: | ||||||||||||
Common stock | 26,586 | 16.7 | % | 19,526 | 12.3 | % | ||||||
Warrants | 973 | 0.6 | % | 92 | 0.1 | % | ||||||
Total equity investments | 27,559 | 17.3 | % | 19,618 | 12.4 | % | ||||||
Limited liability investments | 20,141 | 12.6 | % | 7,294 | 4.6 | % | ||||||
Other investments | 4,077 | 2.6 | % | 3,576 | 2.3 | % | ||||||
Short-term investments | 400 | 0.3 | % | 400 | 0.1 | % | ||||||
Total investments | 107,736 | 67.6 | % | 87,083 | 55.0 | % | ||||||
Cash and cash equivalents | 51,701 | 32.4 | % | 71,234 | 45.0 | % | ||||||
Total | 159,437 | 100.0 | % | 158,317 | 100.0 | % |
40 |
KINGSWAY FINANCIAL SERVICES INC. Management's Discussion and Analysis |
2015 | % of Total | 2014 | % of Total | |||||||||
Due in less than one year | 10,078 | 18.1 | % | 19,256 | 34.3 | % | ||||||
Due in one through five years | 35,999 | 64.8 | % | 30,166 | 53.7 | % | ||||||
Due after five through ten years | 1,425 | 2.6 | % | 1,540 | 2.7 | % | ||||||
Due after ten years | 8,057 | 14.5 | % | 5,233 | 9.3 | % | ||||||
Total | 55,559 | 100.0 | % | 56,195 | 100.0 | % |
41 |
KINGSWAY FINANCIAL SERVICES INC. Management's Discussion and Analysis |
Rating (S&P/Moody's) | 2015 | 2014 | ||
AAA/Aaa | 61.9 | % | 65.3 | % |
AA/Aa | 10.5 | 8.4 | ||
A/A | 18.4 | 21.9 | ||
Percentage rated A/A2 or better | 90.8 | % | 95.6 | % |
BBB/Baa | 3.7 | 4.4 | ||
Not rated | 5.5 | — | ||
Total | 100.0 | % | 100.0 | % |
42 |
KINGSWAY FINANCIAL SERVICES INC. Management's Discussion and Analysis |
Unfunded Commitment | Carrying Value | ||||||||
Limited liability investments: | 2015 | 2015 | 2014 | ||||||
Real estate held through LP | — | — | 4,524 | ||||||
Investments held through LLC | 1,650 | 19,449 | 2,636 | ||||||
Other | 350 | 692 | 134 | ||||||
Total | 2,000 | 20,141 | 7,294 |
Line of Business | 2015 | 2014 | ||
Non-standard automobile | 53,066 | 58,493 | ||
Commercial automobile | 1,358 | 4,248 | ||
Other | 1,047 | 1,154 | ||
Total | 55,471 | 63,895 |
43 |
KINGSWAY FINANCIAL SERVICES INC. Management's Discussion and Analysis |
Line of Business | 2015 | 2014 | ||
Non-standard automobile | 51,937 | 55,476 | ||
Commercial automobile | 1,280 | 4,062 | ||
Other | 1,047 | 1,154 | ||
Total | 54,264 | 60,692 |
Accident Year | Non-standard Automobile | Commercial Automobile | Other | Total | ||||
2010 & prior | (457 | ) | (406 | ) | 120 | (743 | ) | |
2011 | (451 | ) | (7 | ) | — | (458 | ) | |
2012 | 1,018 | (432 | ) | — | 586 | |||
2013 | (935 | ) | (134 | ) | — | (1,069 | ) | |
2014 | 2,300 | — | — | 2,300 | ||||
Total | 1,475 | (979 | ) | 120 | 616 |
Accident Year | Non-standard Automobile | Commercial Automobile | Other | Total | ||||
2009 & prior | (2,560 | ) | (109 | ) | (845 | ) | (3,514 | ) |
2010 | (724 | ) | (381 | ) | (8 | ) | (1,113 | ) |
2011 | (1,981 | ) | (56 | ) | — | (2,037 | ) | |
2012 | 557 | (161 | ) | — | 396 | |||
2013 | 1,401 | (180 | ) | (76 | ) | 1,145 | ||
Total | (3,307 | ) | (887 | ) | (929 | ) | (5,123 | ) |
44 |
KINGSWAY FINANCIAL SERVICES INC. Management's Discussion and Analysis |
45 |
KINGSWAY FINANCIAL SERVICES INC. Management's Discussion and Analysis |
46 |
KINGSWAY FINANCIAL SERVICES INC. Management's Discussion and Analysis |
2016 | 2017 | 2018 | 2019 | 2020 | Thereafter | Total | ||||||||
Subordinated debt | — | — | — | — | — | 90,500 | 90,500 | |||||||
Interest payments on outstanding debt | 4,057 | 4,136 | 4,136 | 4,136 | 4,136 | 50,531 | 71,132 | |||||||
Unpaid loss and loss adjustment expenses | 37,846 | 12,101 | 4,849 | 2,065 | 722 | 863 | 58,446 | |||||||
Future minimum lease payments | 1,584 | 1,561 | 873 | 666 | 18 | 70 | 4,772 | |||||||
Total | 43,487 | 17,798 | 9,858 | 6,867 | 4,876 | 141,964 | 224,850 |
47 |
KINGSWAY FINANCIAL SERVICES INC. |
Report of Independent Registered Public Accounting Firm | ||
Consolidated Balance Sheets at December 31, 2015 and 2014 | ||
Consolidated Statements of Operations for the Years Ended December 31, 2015 and 2014 | ||
Consolidated Statements of Comprehensive Income (Loss) for the Years Ended December 31, 2015 and 2014 | ||
Consolidated Statements of Shareholders' Equity for the Years Ended December 31, 2015 and 2014 | ||
Consolidated Statements of Cash Flows for the Years Ended December 31, 2015 and 2014 | ||
Notes to the Consolidated Financial Statements | ||
Note 1-Business | ||
Note 2-Summary of Significant Accounting Policies | ||
Note 3-Recently Issued Accounting Standards | ||
Note 4-Disposition, Deconsolidation and Discontinued Operations | ||
Note 5-Investments | ||
Note 6-Investment in Investee | ||
Note 7-Reinsurance | ||
Note 8-Deferred Acquisition Costs | ||
Note 9-Goodwill | ||
Note 10-Intangible Assets | ||
Note 11-Property and Equipment | ||
Note 12-Unpaid Loss and Loss Adjustment Expenses | ||
Note 13-Debt | ||
Note 14-Finance Lease Obligation Liability | ||
Note 15-Income Taxes | ||
Note 16-Loss from Continuing Operations per Share | ||
Note 17-Stock-Based Compensation | ||
Note 18-Employee Benefit Plan | ||
Note 19-Class A Preferred Stock | ||
Note 20-Shareholders' Equity | ||
Note 21-Accumulated Other Comprehensive Income | ||
Note 22-Segmented Information | ||
Note 23-Fair Value of Financial Instruments | ||
Note 24-Related Party Transactions | ||
Note 25-Commitments and Contingent Liabilities | ||
Note 26-Regulatory Capital Requirements and Ratios | ||
Note 27-Statutory Information and Policies |
48 |
KINGSWAY FINANCIAL SERVICES INC. |
49 |
KINGSWAY FINANCIAL SERVICES INC. |
December 31, 2015 | December 31, 2014 | |||||||
Assets | ||||||||
Investments: | ||||||||
Fixed maturities, at fair value (amortized cost of $55,606 and $56,000, respectively) | $ | 55,559 | $ | 56,195 | ||||
Equity investments, at fair value (cost of $26,428 and $16,579, respectively) | 27,559 | 19,618 | ||||||
Limited liability investments | 20,141 | 7,294 | ||||||
Other investments, at cost which approximates fair value | 4,077 | 3,576 | ||||||
Short-term investments, at cost which approximates fair value | 400 | 400 | ||||||
Total investments | 107,736 | 87,083 | ||||||
Cash and cash equivalents | 51,701 | 71,234 | ||||||
Investment in investee | 1,772 | 2,115 | ||||||
Accrued investment income | 594 | 141 | ||||||
Premiums receivable, net of allowance for doubtful accounts of $165 and $1,889, respectively | 27,090 | 28,885 | ||||||
Service fee receivable, net of allowance for doubtful accounts of $276 and $247, respectively | 911 | 964 | ||||||
Other receivables, net of allowance for doubtful accounts of $806 and $806, respectively | 3,789 | 5,145 | ||||||
Reinsurance recoverable | 1,422 | 3,652 | ||||||
Prepaid reinsurance premiums | 7 | 8 | ||||||
Deferred acquisition costs, net | 12,143 | 12,197 | ||||||
Income taxes recoverable | 61 | 74 | ||||||
Property and equipment, net of accumulated depreciation of $12,537 and $15,751, respectively | 5,577 | 5,975 | ||||||
Goodwill | 10,078 | 10,078 | ||||||
Intangible assets, net of accumulated amortization of $6,009 and $4,765, respectively | 14,736 | 15,980 | ||||||
Other assets | 3,405 | 3,638 | ||||||
Assets held for sale | — | 54,553 | ||||||
Total Assets | $ | 241,022 | $ | 301,722 | ||||
Liabilities and Shareholders' Equity | ||||||||
Liabilities: | ||||||||
Unpaid loss and loss adjustment expenses: | ||||||||
Property and casualty | $ | 55,471 | $ | 63,895 | ||||
Vehicle service agreements | 2,975 | 2,975 | ||||||
Total unpaid loss and loss adjustment expenses | 58,446 | 66,870 | ||||||
Unearned premiums | 35,234 | 36,432 | ||||||
Reinsurance payable | 145 | 525 | ||||||
LROC preferred units, at fair value | — | 13,618 | ||||||
Subordinated debt, at fair value | 39,898 | 40,659 | ||||||
Deferred income tax liability | 2,924 | 2,837 | ||||||
Deferred service fees | 34,319 | 35,096 | ||||||
Accrued expenses and other liabilities | 19,959 | 35,836 | ||||||
Liabilities held for sale | — | 21,653 | ||||||
Total Liabilities | 190,925 | 253,526 | ||||||
Class A preferred stock, no par value; unlimited number authorized; 262,876 and 262,876 issued and outstanding at December 31, 2015 and December 31, 2014, respectively | 6,394 | 6,330 | ||||||
Shareholders' Equity: | ||||||||
Common stock, no par value; unlimited number authorized; 19,709,706 and 19,709,706 issued and outstanding at December 31, 2015 and December 31, 2014, respectively | — | — | ||||||
Additional paid-in capital | 341,646 | 340,844 | ||||||
Accumulated deficit | (308,995 | ) | (312,050 | ) | ||||
Accumulated other comprehensive income | 9,300 | 8,670 | ||||||
Shareholders' equity attributable to common shareholders | 41,951 | 37,464 | ||||||
Noncontrolling interests in consolidated subsidiaries | 1,752 | 4,402 | ||||||
Total Shareholders' Equity | 43,703 | 41,866 | ||||||
Total Liabilities and Shareholders' Equity | $ | 241,022 | $ | 301,722 |
50 |
KINGSWAY FINANCIAL SERVICES INC. |
Years ended December 31, | ||||||||
2015 | 2014 | |||||||
Revenues: | ||||||||
Net premiums earned | $ | 117,433 | $ | 117,593 | ||||
Service fee and commission income | 22,966 | 24,659 | ||||||
Net investment income | 2,918 | 1,616 | ||||||
Net realized gains | 1,197 | 5,041 | ||||||
Other-than-temporary impairment loss | (10 | ) | — | |||||
Other income | 15,462 | 9,315 | ||||||
Total revenues | 159,966 | 158,224 | ||||||
Operating expenses: | ||||||||
Loss and loss adjustment expenses | 92,812 | 86,227 | ||||||
Commissions and premium taxes | 22,773 | 23,238 | ||||||
Cost of services sold | 4,044 | 3,880 | ||||||
General and administrative expenses | 41,760 | 41,613 | ||||||
Amortization of intangible assets | 1,244 | 1,620 | ||||||
Contingent consideration benefit | (1,139 | ) | (2,223 | ) | ||||
Impairment of asset held for sale | — | 1,180 | ||||||
Total operating expenses | 161,494 | 155,535 | ||||||
Operating (loss) income | (1,528 | ) | 2,689 | |||||
Other (revenues) expenses, net: | ||||||||
Interest expense | 5,278 | 5,645 | ||||||
Foreign exchange losses, net | 1,215 | 419 | ||||||
(Gain) loss on change in fair value of debt | (1,458 | ) | 10,953 | |||||
Loss on disposal of subsidiary | — | 1,244 | ||||||
Loss on disposal of asset held for sale | — | 125 | ||||||
Loss on deconsolidation of subsidiary | 4,420 | — | ||||||
Equity in net loss of investee | 339 | 190 | ||||||
Total other expenses, net | 9,794 | 18,576 | ||||||
Loss from continuing operations before income tax expense (benefit) | (11,322 | ) | (15,887 | ) | ||||
Income tax expense (benefit) | 93 | (1,221 | ) | |||||
Loss from continuing operations | (11,415 | ) | (14,666 | ) | ||||
Income from discontinued operations, net of taxes | 1,417 | 3,442 | ||||||
Gain on disposal of discontinued operations, net of taxes | 11,267 | — | ||||||
Net income (loss) | 1,269 | (11,224 | ) | |||||
Less: net income attributable to noncontrolling interests in consolidated subsidiaries | 162 | 1,596 | ||||||
Less: dividends on preferred stock | 329 | 300 | ||||||
Net income (loss) attributable to common shareholders | $ | 778 | $ | (13,120 | ) | |||
Loss per share - continuing operations: | ||||||||
Basic: | $ | (0.60 | ) | $ | (0.95 | ) | ||
Diluted: | $ | (0.60 | ) | $ | (0.95 | ) | ||
Earnings per share - discontinued operations: | ||||||||
Basic: | $ | 0.64 | $ | 0.20 | ||||
Diluted: | $ | 0.64 | $ | 0.20 | ||||
Earnings (loss) per share – net income (loss) attributable to common shareholders: | ||||||||
Basic: | $ | 0.04 | $ | (0.75 | ) | |||
Diluted: | $ | 0.04 | $ | (0.75 | ) | |||
Weighted average shares outstanding (in ‘000s): | ||||||||
Basic: | 19,710 | 17,398 | ||||||
Diluted: | 19,710 | 17,398 |
51 |
KINGSWAY FINANCIAL SERVICES INC. |
Years ended December 31, | ||||||||
2015 | 2014 | |||||||
Net income (loss) | $ | 1,269 | $ | (11,224 | ) | |||
Other comprehensive income (loss), net of taxes(1): | ||||||||
Unrealized (losses) gains on fixed maturities and equity investments: | ||||||||
Unrealized losses arising during the period | (3,505 | ) | (2,597 | ) | ||||
Reclassification adjustment for amounts included in net income (loss) | 1,564 | 1,552 | ||||||
Foreign currency translation adjustments | 858 | (31 | ) | |||||
Recognition of currency translation loss on deconsolidation of subsidiary | 1,243 | — | ||||||
Other comprehensive income (loss) | 160 | (1,076 | ) | |||||
Comprehensive income (loss) | $ | 1,429 | $ | (12,300 | ) | |||
Less: comprehensive (loss) income attributable to noncontrolling interests in consolidated subsidiaries | (308 | ) | 1,451 | |||||
Comprehensive income (loss) attributable to common shareholders | $ | 1,737 | $ | (13,751 | ) | |||
(1) Net of income tax expense (benefit) of $0 and $0 in 2015 and 2014, respectively |
52 |
KINGSWAY FINANCIAL SERVICES INC. |
Common Stock | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Income | Shareholders' Equity Attributable to Common Shareholders | Noncontrolling Interests in Consolidated Subsidiaries | Total Shareholders' Equity | |||||||||||||||||||||||||
Shares | Amount | ||||||||||||||||||||||||||||||
Balance, January 1, 2014 | 16,429,761 | $ | — | $ | 324,803 | $ | (298,930 | ) | $ | 9,601 | $ | 35,474 | $ | 1,446 | $ | 36,920 | |||||||||||||||
Net (loss) income | — | — | — | (12,820 | ) | — | (12,820 | ) | 1,596 | (11,224 | ) | ||||||||||||||||||||
Other comprehensive loss | — | — | — | — | (931 | ) | (931 | ) | (145 | ) | (1,076 | ) | |||||||||||||||||||
Exercise of warrants | 3,279,945 | — | 14,803 | — | — | 14,803 | — | 14,803 | |||||||||||||||||||||||
Preferred stock dividends | (300 | ) | — | (300 | ) | — | (300 | ) | |||||||||||||||||||||||
Consolidation of 1347 Investors LLC | — | — | — | — | — | 1,505 | 1,505 | ||||||||||||||||||||||||
Forfeited options | — | — | (1 | ) | — | — | (1 | ) | — | (1 | ) | ||||||||||||||||||||
Stock-based compensation | — | — | 1,239 | — | — | 1,239 | — | 1,239 | |||||||||||||||||||||||
Balance, December 31, 2014 | 19,709,706 | $ | — | $ | 340,844 | $ | (312,050 | ) | $ | 8,670 | $ | 37,464 | $ | 4,402 | $ | 41,866 | |||||||||||||||
Deconsolidation of noncontrolling interest | — | — | — | 2,342 | — | 2,342 | (2,342 | ) | — | ||||||||||||||||||||||
Net income | — | — | — | 1,107 | — | 1,107 | 162 | 1,269 | |||||||||||||||||||||||
Other comprehensive income (loss) | — | — | — | — | 630 | 630 | (470 | ) | 160 | ||||||||||||||||||||||
Preferred stock dividends, net of tax | — | — | — | (394 | ) | — | (394 | ) | — | (394 | ) | ||||||||||||||||||||
Stock-based compensation | — | — | 802 | — | — | 802 | — | 802 | |||||||||||||||||||||||
Balance, December 31, 2015 | 19,709,706 | $ | — | $ | 341,646 | $ | (308,995 | ) | $ | 9,300 | $ | 41,951 | $ | 1,752 | $ | 43,703 |
53 |
KINGSWAY FINANCIAL SERVICES INC. |
Years ended December 31, | ||||||||
2015 | 2014 | |||||||
Cash provided by (used in): | ||||||||
Operating activities: | ||||||||
Net income (loss) | $ | 1,269 | $ | (11,224 | ) | |||
Adjustments to reconcile net income (loss) to net cash used in operating activities: | ||||||||
Gain on disposal of discontinued operations, net of taxes | (11,267 | ) | — | |||||
Equity in net loss of investee | 339 | 190 | ||||||
Equity in net income of limited liability investments | (1,596 | ) | (184 | ) | ||||
Depreciation and amortization expense | 1,845 | 1,635 | ||||||
Contingent consideration benefit | (1,139 | ) | (2,223 | ) | ||||
Stock-based compensation expense, net of forfeitures | 802 | 1,239 | ||||||
Net realized gains | (1,197 | ) | (5,041 | ) | ||||
(Gain) loss on change in fair value of debt | (1,458 | ) | 10,953 | |||||
Deferred income taxes | 87 | 263 | ||||||
Other-than-temporary impairment loss | 10 | — | ||||||
Amortization of fixed maturities premiums and discounts | 323 | 618 | ||||||
Loss on disposal of subsidiary | — | 1,244 | ||||||
Loss on disposal of asset held for sale | — | 125 | ||||||
Loss on deconsolidation of subsidiary | 4,420 | — | ||||||
Impairment of asset held for sale | — | 1,180 | ||||||
Changes in operating assets and liabilities: | ||||||||
Premiums and service fee receivable, net | 1,848 | 3,001 | ||||||
Other receivables, net | 1,356 | (1,372 | ) | |||||
Reinsurance recoverable | 2,230 | 6,683 | ||||||
Prepaid reinsurance premiums | 1 | 6,808 | ||||||
Deferred acquisition costs, net | 54 | 195 | ||||||
Income taxes recoverable | 13 | (74 | ) | |||||
Unpaid loss and loss adjustment expenses | (8,424 | ) | (20,792 | ) | ||||
Unearned premiums | (1,198 | ) | (12,145 | ) | ||||
Reinsurance payable | (380 | ) | (508 | ) | ||||
Deferred service fees | (777 | ) | 493 | |||||
Other, net | (19,966 | ) | 2,597 | |||||
Net cash used in operating activities | (32,805 | ) | (16,339 | ) | ||||
Investing activities: | ||||||||
Proceeds from sales and maturities of fixed maturities | 27,480 | 27,655 | ||||||
Proceeds from sales of equity investments | 819 | 8,047 | ||||||
Proceeds from sales of other investments | — | 3,000 | ||||||
Purchases of fixed maturities | (26,351 | ) | (36,902 | ) | ||||
Purchases of equity investments | (9,564 | ) | (14,462 | ) | ||||
Net acquisition of limited liability investments | (10,312 | ) | (2,703 | ) | ||||
Net purchases of other investments | (600 | ) | (3,600 | ) | ||||
Net proceeds from (purchases of) short-term investments | 4 | (102 | ) | |||||
Net proceeds from sale of discontinued operations | 44,919 | — | ||||||
Acquisition of investee | — | (2,305 | ) | |||||
Net (purchases) disposals of property and equipment | (203 | ) | 4,663 | |||||
Net cash provided by (used in) investing activities | 26,192 | (16,709 | ) | |||||
Financing activities: | ||||||||
Proceeds from issuance of preferred stock, net | — | 6,330 | ||||||
Proceeds from exercise of warrants | — | 14,803 | ||||||
Redemption of LROC preferred units | (12,920 | ) | — | |||||
Redemption of senior unsecured debentures | — | (14,356 | ) | |||||
Net cash (used in) provided by financing activities | (12,920 | ) | 6,777 | |||||
Net decrease in cash and cash equivalents | (19,533 | ) | (26,271 | ) | ||||
Cash and cash equivalents at beginning of period | 71,234 | 97,505 | ||||||
Cash and cash equivalents at end of period | $ | 51,701 | $ | 71,234 | ||||
Supplemental disclosures of cash flows information: | ||||||||
Cash paid (received) during the year for: | ||||||||
Interest | $ | 24,249 | $ | 5,288 | ||||
Income taxes | $ | — | $ | (736 | ) | |||
Non-cash investing and financing activities: | ||||||||
Fixed maturities received in connection with termination of MSA | $ | 3,000 | $ | — | ||||
Equity investments received in connection with termination of MSA | $ | 960 | $ | — | ||||
Accrued dividends on preferred stock | $ | 329 | $ | 300 |
54 |
KINGSWAY FINANCIAL SERVICES INC. Notes to Consolidated Financial Statements |
(a) | Principles of consolidation: |
(b) | Use of estimates: |
55 |
KINGSWAY FINANCIAL SERVICES INC. Notes to Consolidated Financial Statements |
(d) | Business combinations: |
(e) | Investments: |
56 |
KINGSWAY FINANCIAL SERVICES INC. Notes to Consolidated Financial Statements |
(f) | Derivative financial instruments: |
(g) | Cash and cash equivalents: |
(h) | Investment in investee: |
(i) | Premiums and service fee receivables: |
(j) | Reinsurance: |
(k) | Deferred acquisition costs, net: |
57 |
KINGSWAY FINANCIAL SERVICES INC. Notes to Consolidated Financial Statements |
(l) | Property and equipment: |
(m) | Goodwill and intangible assets: |
(n) | Unpaid loss and loss adjustment expenses: |
58 |
KINGSWAY FINANCIAL SERVICES INC. Notes to Consolidated Financial Statements |
(o) | Debt: |
(p) | Contingent consideration: |
(q) | Income taxes: |
(r) | Revenue recognition: |
59 |
KINGSWAY FINANCIAL SERVICES INC. Notes to Consolidated Financial Statements |
(s) | Cost of services sold: |
(t) | Stock-based compensation: |
(u) | Fair value of financial instruments: |
60 |
KINGSWAY FINANCIAL SERVICES INC. Notes to Consolidated Financial Statements |
61 |
KINGSWAY FINANCIAL SERVICES INC. Notes to Consolidated Financial Statements |
62 |
KINGSWAY FINANCIAL SERVICES INC. Notes to Consolidated Financial Statements |
(in thousands) | Three months ended March 31, | Year ended December 31, | ||||||
2015 | 2014 | |||||||
Revenues: | ||||||||
Service fee and commission income | $ | 8,342 | $ | 30,189 | ||||
Other (expense) income | (20 | ) | 27 | |||||
Total revenues | 8,322 | 30,216 | ||||||
Expenses: | ||||||||
General and administrative expenses | 6,462 | 25,611 | ||||||
Income from discontinued operations before income tax expense | 1,860 | 4,605 | ||||||
Income tax expense | 443 | 1,163 | ||||||
Income from discontinued operations, net of taxes | 1,417 | 3,442 | ||||||
Gain on disposal of discontinued operations before income tax benefit | 11,177 | — | ||||||
Income tax benefit | (90 | ) | — | |||||
Gain on disposal of discontinued operations, net of taxes | 11,267 | — | ||||||
Total gain from discontinued operations, net of taxes | $ | 12,684 | $ | 3,442 |
(in thousands) | December 31, 2014 | |||
Assets | ||||
Cash and cash equivalents | $ | 2,792 | ||
Service fee receivable | 19,006 | |||
Other receivables | 257 | |||
Income taxes recoverable | 150 | |||
Property and equipment, net of accumulated depreciation | 193 | |||
Goodwill | 510 | |||
Intangible assets, net of accumulated amortization | 31,318 | |||
Other assets | 327 | |||
Assets held for sale | $ | 54,553 | ||
Liabilities | ||||
Deferred income tax liability | $ | 2,550 | ||
Deferred service fees | 14,358 | |||
Accrued expenses and other liabilities | 4,745 | |||
Liabilities held for sale | $ | 21,653 |
63 |
KINGSWAY FINANCIAL SERVICES INC. Notes to Consolidated Financial Statements |
(in thousands) | December 31, 2015 | |||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | |||||||||||||
Fixed maturities: | ||||||||||||||||
U.S. government, government agencies and authorities | $ | 20,443 | $ | 73 | $ | 63 | $ | 20,453 | ||||||||
States, municipalities and political subdivisions | 2,241 | 20 | 5 | 2,256 | ||||||||||||
Mortgage-backed | 7,997 | 25 | 59 | 7,963 | ||||||||||||
Asset-backed securities and collateralized mortgage obligations | 6,040 | 4 | 21 | 6,023 | ||||||||||||
Corporate | 18,885 | 60 | 81 | 18,864 | ||||||||||||
Total fixed maturities | 55,606 | 182 | 229 | 55,559 | ||||||||||||
Equity investments: | ||||||||||||||||
Common stock | 25,177 | 3,464 | 2,055 | 26,586 | ||||||||||||
Warrants | 1,251 | 52 | 330 | 973 | ||||||||||||
Total equity investments | 26,428 | 3,516 | 2,385 | 27,559 | ||||||||||||
Total fixed maturities and equity investments | $ | 82,034 | $ | 3,698 | $ | 2,614 | $ | 83,118 |
(in thousands) | December 31, 2014 | |||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | |||||||||||||
Fixed maturities: | ||||||||||||||||
U.S. government, government agencies and authorities | $ | 20,436 | $ | 333 | $ | 10 | $ | 20,759 | ||||||||
Canadian government | 4,519 | — | 277 | 4,242 | ||||||||||||
States, municipalities and political subdivisions | 3,358 | 61 | — | 3,419 | ||||||||||||
Mortgage-backed | 5,330 | 37 | 15 | 5,352 | ||||||||||||
Asset-backed securities and collateralized mortgage obligations | 7,221 | 3 | 10 | 7,214 | ||||||||||||
Corporate | 15,136 | 103 | 30 | 15,209 | ||||||||||||
Total fixed maturities | 56,000 | 537 | 342 | 56,195 | ||||||||||||
Equity investments: | ||||||||||||||||
Common stock | 16,450 | 3,360 | 284 | 19,526 | ||||||||||||
Warrants | 129 | — | 37 | 92 | ||||||||||||
Total equity investments | 16,579 | 3,360 | 321 | 19,618 | ||||||||||||
Total fixed maturities and equity investments | $ | 72,579 | $ | 3,897 | $ | 663 | $ | 75,813 |
64 |
KINGSWAY FINANCIAL SERVICES INC. Notes to Consolidated Financial Statements |
(in thousands) | December 31, 2015 | |||||||
Amortized Cost | Estimated Fair Value | |||||||
Due in one year or less | $ | 9,995 | $ | 10,078 | ||||
Due after one year through five years | 36,091 | 35,999 | ||||||
Due after five years through ten years | 1,429 | 1,425 | ||||||
Due after ten years | 8,091 | 8,057 | ||||||
Total | $ | 55,606 | $ | 55,559 |
(in thousands) | December 31, 2015 | ||||||||||||||||||||||
Less than 12 Months | Greater than 12 Months | Total | |||||||||||||||||||||
Estimated Fair Value | Unrealized Loss | Estimated Fair Value | Unrealized Loss | Estimated Fair Value | Unrealized Loss | ||||||||||||||||||
Fixed maturities: | |||||||||||||||||||||||
U.S. government, government agencies and authorities | $ | 12,635 | $ | 63 | $ | — | $ | — | $ | 12,635 | $ | 63 | |||||||||||
States, municipalities and political subdivisions | 745 | 5 | — | — | 745 | 5 | |||||||||||||||||
Mortgage-backed | 5,685 | 59 | — | — | 5,685 | 59 | |||||||||||||||||
Asset-backed securities and collateralized mortgage obligations | 5,035 | 21 | — | — | 5,035 | 21 | |||||||||||||||||
Corporate | 9,171 | 81 | — | — | 9,171 | 81 | |||||||||||||||||
Total fixed maturities | 33,271 | 229 | — | — | 33,271 | 229 | |||||||||||||||||
Equity investments: | |||||||||||||||||||||||
Common stock | 15,711 | 2,055 | — | — | 15,711 | 2,055 | |||||||||||||||||
Warrants | 897 | 330 | — | — | 897 | 330 | |||||||||||||||||
Total equity investments | 16,608 | 2,385 | — | — | 16,608 | 2,385 | |||||||||||||||||
Total | $ | 49,879 | $ | 2,614 | $ | — | $ | — | $ | 49,879 | $ | 2,614 |
65 |
KINGSWAY FINANCIAL SERVICES INC. Notes to Consolidated Financial Statements |
(in thousands) | December 31, 2014 | ||||||||||||||||||||||
Less than 12 Months | Greater than 12 Months | Total | |||||||||||||||||||||
Estimated Fair Value | Unrealized Loss | Estimated Fair Value | Unrealized Loss | Estimated Fair Value | Unrealized Loss | ||||||||||||||||||
Fixed maturities: | |||||||||||||||||||||||
U.S. government, government agencies and authorities | $ | 12,784 | $ | 10 | $ | 473 | $ | — | $ | 13,257 | $ | 10 | |||||||||||
Canadian government | — | — | 4,242 | 277 | 4,242 | 277 | |||||||||||||||||
States, municipalities and political subdivisions | 250 | — | — | — | 250 | — | |||||||||||||||||
Mortgage-backed | 2,816 | 15 | — | — | 2,816 | 15 | |||||||||||||||||
Asset-backed securities and collateralized mortgage obligations | 5,097 | 10 | — | — | 5,097 | 10 | |||||||||||||||||
Corporate | 6,226 | 20 | — | 10 | 6,226 | 30 | |||||||||||||||||
Total fixed maturities | 27,173 | 55 | 4,715 | 287 | 31,888 | 342 | |||||||||||||||||
Equity investments: | |||||||||||||||||||||||
Common stock | 4,164 | 284 | — | — | 4,164 | 284 | |||||||||||||||||
Warrants | 92 | 37 | — | — | 92 | 37 | |||||||||||||||||
Total equity investments | 4,256 | 321 | — | — | 4,256 | 321 | |||||||||||||||||
Total | $ | 31,429 | $ | 376 | $ | 4,715 | $ | 287 | $ | 36,144 | $ | 663 |
• | identifying all unrealized loss positions that have existed for at least six months; |
• | identifying other circumstances which management believes may impact the recoverability of the unrealized loss positions; |
• | obtaining a valuation analysis from third-party investment managers regarding the intrinsic value of these investments based on their knowledge and experience together with market-based valuation techniques; |
• | reviewing the trading range of certain investments over the preceding calendar period; |
• | assessing if declines in market value are other-than-temporary for debt instruments based on the investment grade credit ratings from third-party rating agencies; |
• | assessing if declines in market value are other-than-temporary for any debt instrument with a non-investment grade credit rating based on the continuity of its debt service record; |
• | determining the necessary provision for declines in market value that are considered other-than-temporary based on the analyses performed; and |
• | assessing the Company's ability and intent to hold these investments at least until the investment impairment is recovered. |
• | the opinions of professional investment managers could be incorrect; |
• | the past trading patterns of individual investments may not reflect future valuation trends; |
• | the credit ratings assigned by independent credit rating agencies may be incorrect due to unforeseen or unknown facts related to a company's financial situation; and |
• | the debt service pattern of non-investment grade instruments may not reflect future debt service capabilities and may not reflect a company's unknown underlying financial problems. |
66 |
KINGSWAY FINANCIAL SERVICES INC. Notes to Consolidated Financial Statements |
(in thousands) | Years ended December 31, | |||||||
2015 | 2014 | |||||||
Gross realized gains | $ | 1,198 | $ | 5,474 | ||||
Gross realized losses | (1 | ) | (433 | ) | ||||
Total | $ | 1,197 | $ | 5,041 |
(in thousands) | Years ended December 31, | |||||||
2015 | 2014 | |||||||
Investment income | ||||||||
Interest from fixed maturities | $ | 907 | $ | 1,084 | ||||
Dividends | 702 | 203 | ||||||
Income from limited liability investments | 1,596 | 184 | ||||||
Loss on change in fair value of warrants | (216 | ) | — | |||||
Other | 186 | 372 | ||||||
Gross investment income | 3,175 | 1,843 | ||||||
Investment expenses | (257 | ) | (227 | ) | ||||
Net investment income | $ | 2,918 | $ | 1,616 |
67 |
KINGSWAY FINANCIAL SERVICES INC. Notes to Consolidated Financial Statements |
(in thousands, except for percentages) | ||||||||||||||||||||
December 31, 2015 | December 31, 2014 | |||||||||||||||||||
Equity percentage | Estimated Fair Value | Carrying value | Equity percentage | Estimated Fair Value | Carrying value | |||||||||||||||
1347 Capital Corp. | 21.0% | $ | 12,369 | $ | 1,772 | 22.7% | $ | 13,038 | $ | 2,115 |
(in thousands) | Years ended December 31, | |||||||
2015 | 2014 | |||||||
Ceded premiums written | $ | 165 | $ | (3,695 | ) | |||
Ceded premiums earned | 166 | 1,104 | ||||||
Ceded loss and loss adjustment expenses | (571 | ) | 655 | |||||
Ceded unpaid loss and loss adjustment expenses | 1,207 | 3,203 | ||||||
Ceded unearned premiums | 7 | 533 | ||||||
Ceding commissions | (138 | ) | 5 |
68 |
KINGSWAY FINANCIAL SERVICES INC. Notes to Consolidated Financial Statements |
(in thousands) | December 31, 2015 | |||||||
Unearned Premium Reserve | Commission Equity | |||||||
Assumed | $ | 5,041 | $ | 776 | ||||
Ceded | 7 | — | ||||||
Net | $ | 5,034 | $ | 776 |
(in thousands) | Years ended December 31, | |||||||
2015 | 2014 | |||||||
Balance at January 1, net | $ | 12,197 | $ | 12,392 | ||||
Additions | 26,307 | 26,627 | ||||||
Amortization | (26,361 | ) | (25,779 | ) | ||||
Acquisition costs disposed of during the year related to PIH | — | (1,043 | ) | |||||
Balance at December 31, net | $ | 12,143 | $ | 12,197 |
69 |
KINGSWAY FINANCIAL SERVICES INC. Notes to Consolidated Financial Statements |
(in thousands) | December 31, 2015 | |||||||||||
Gross Carrying Value | Accumulated Amortization | Net Carrying Value | ||||||||||
Intangible assets subject to amortization | ||||||||||||
Database | $ | 4,918 | $ | 1,537 | $ | 3,381 | ||||||
Vehicle service agreements in-force | 3,680 | 3,362 | 318 | |||||||||
Customer-related relationships | 3,611 | 1,040 | 2,571 | |||||||||
Non-compete agreement | 70 | 70 | — | |||||||||
Intangible assets not subject to amortization | ||||||||||||
Insurance licenses | 7,803 | — | 7,803 | |||||||||
Trade name | 663 | — | 663 | |||||||||
Total | $ | 20,745 | $ | 6,009 | $ | 14,736 |
(in thousands) | December 31, 2014 | |||||||||||
Gross Carrying Value | Accumulated Amortization | Net Carrying Value | ||||||||||
Intangible assets subject to amortization | ||||||||||||
Database | $ | 4,918 | $ | 1,045 | $ | 3,873 | ||||||
Vehicle service agreements in-force | 3,680 | 2,975 | 705 | |||||||||
Customer-related relationships | 3,611 | 695 | 2,916 | |||||||||
Non-compete agreement | 70 | 50 | 20 | |||||||||
Intangible assets not subject to amortization | ||||||||||||
Insurance licenses | 7,803 | — | 7,803 | |||||||||
Trade name | 663 | — | 663 | |||||||||
Total | $ | 20,745 | $ | 4,765 | $ | 15,980 |
70 |
KINGSWAY FINANCIAL SERVICES INC. Notes to Consolidated Financial Statements |
(in thousands) | December 31, 2015 | |||||||||||
Cost | Accumulated Depreciation | Carrying Value | ||||||||||
Land | $ | 1,984 | $ | — | $ | 1,984 | ||||||
Building | 4,565 | 1,669 | 2,896 | |||||||||
Leasehold improvements | 463 | 330 | 133 | |||||||||
Furniture and equipment | 2,588 | 2,318 | 270 | |||||||||
Computer hardware | 8,514 | 8,220 | 294 | |||||||||
Total | $ | 18,114 | $ | 12,537 | $ | 5,577 |
(in thousands) | December 31, 2014 | |||||||||||
Cost | Accumulated Depreciation | Carrying Value | ||||||||||
Land | $ | 1,984 | $ | — | $ | 1,984 | ||||||
Building | 4,565 | 1,539 | 3,026 | |||||||||
Leasehold improvements | 462 | 276 | 186 | |||||||||
Furniture and equipment | 2,743 | 2,442 | 301 | |||||||||
Computer hardware | 11,972 | 11,494 | 478 | |||||||||
Total | $ | 21,726 | $ | 15,751 | $ | 5,975 |
71 |
KINGSWAY FINANCIAL SERVICES INC. Notes to Consolidated Financial Statements |
(in thousands) | December 31, | |||||||
2015 | 2014 | |||||||
Balance at beginning of period, gross | $ | 63,895 | $ | 84,534 | ||||
Less reinsurance recoverable related to property and casualty unpaid loss and loss adjustment expenses | 3,203 | 7,942 | ||||||
Balance at beginning of period, net | 60,692 | 76,592 | ||||||
Incurred related to: | ||||||||
Current year | 86,439 | 84,577 | ||||||
Prior years | 616 | (5,123 | ) | |||||
Paid related to: | ||||||||
Current year | (54,415 | ) | (52,521 | ) | ||||
Prior years | (39,068 | ) | (42,428 | ) | ||||
Disposal of unpaid loss and loss adjustment expenses related to PIH | — | (405 | ) | |||||
Balance at end of period, net | 54,264 | 60,692 | ||||||
Plus reinsurance recoverable related to property and casualty unpaid loss and loss adjustment expenses | 1,207 | 3,203 | ||||||
Balance at end of period, gross | $ | 55,471 | $ | 63,895 |
72 |
KINGSWAY FINANCIAL SERVICES INC. Notes to Consolidated Financial Statements |
(in thousands) | December 31, | |||||||
2015 | 2014 | |||||||
Balance at beginning of period | $ | 2,975 | $ | 3,128 | ||||
Incurred related to: | ||||||||
Current year | 5,757 | 6,773 | ||||||
Prior years | — | — | ||||||
Paid related to: | ||||||||
Current year | (5,757 | ) | (6,866 | ) | ||||
Prior years | — | (60 | ) | |||||
Balance at end of period | $ | 2,975 | $ | 2,975 |
(in thousands) | December 31, | |||||||||||||||
2015 | 2014 | |||||||||||||||
Principal | Fair Value | Principal | Fair Value | |||||||||||||
LROC preferred units due 2015 | $ | — | $ | — | $ | 13,618 | $ | 13,618 | ||||||||
Subordinated debt | 90,500 | 39,898 | 90,500 | 40,659 | ||||||||||||
Total | $ | 90,500 | $ | 39,898 | $ | 104,118 | $ | 54,277 |
Issuer | Principal (in thousands) | Issue date | Interest | Redemption date | ||
Kingsway CT Statutory Trust I | $ | 15,000 | 12/4/2002 | annual interest rate equal to LIBOR, plus 4.00% payable quarterly | 12/4/2032 | |
Kingsway CT Statutory Trust II | $ | 17,500 | 5/15/2003 | annual interest rate equal to LIBOR, plus 4.10% payable quarterly | 5/15/2033 | |
Kingsway CT Statutory Trust III | $ | 20,000 | 10/29/2003 | annual interest rate equal to LIBOR, plus 3.95% payable quarterly | 10/29/2033 | |
Kingsway DE Statutory Trust III | $ | 15,000 | 5/22/2003 | annual interest rate equal to LIBOR, plus 4.20% payable quarterly | 5/22/2033 | |
Kingsway DE Statutory Trust IV | $ | 10,000 | 9/30/2003 | annual interest rate equal to LIBOR, plus 3.85% payable quarterly | 9/30/2033 | |
Kingsway DE Statutory Trust VI | $ | 13,000 | 1/8/2004 | annual interest rate equal to LIBOR, plus 4.00% payable quarterly | 1/8/2034 |
73 |
KINGSWAY FINANCIAL SERVICES INC. Notes to Consolidated Financial Statements |
(in thousands) | Years ended December 31, | |||||||
2015 | 2014 | |||||||
Current income tax expense (benefit) | $ | 6 | $ | (1,484 | ) | |||
Deferred income tax expense | 87 | 263 | ||||||
Income tax expense (benefit) | $ | 93 | $ | (1,221 | ) |
74 |
KINGSWAY FINANCIAL SERVICES INC. Notes to Consolidated Financial Statements |
(in thousands) | Years ended December 31, | |||||||
2015 | 2014 | |||||||
Income tax benefit at United States statutory income tax rate | $ | (3,849 | ) | $ | (5,402 | ) | ||
Deconsolidation of subsidiary | 2,384 | — | ||||||
Valuation allowance | 1,033 | 5,686 | ||||||
Non-taxable dividend income | (415 | ) | (1,669 | ) | ||||
Foreign operations subject to different tax rates | 223 | 514 | ||||||
Indefinite life intangibles | 88 | 88 | ||||||
Change in unrecognized tax benefits | — | (1,256 | ) | |||||
Disposition of subsidiary | — | 423 | ||||||
Prior year tax | — | (341 | ) | |||||
Other | 629 | 736 | ||||||
Income tax expense (benefit) for continuing operations | $ | 93 | $ | (1,221 | ) |
(in thousands) | December 31, | |||||||
2015 | 2014 | |||||||
Deferred income tax assets: | ||||||||
Losses carried forward | $ | 295,320 | $ | 302,246 | ||||
Unpaid loss and loss adjustment expenses and unearned premiums | 5,314 | 5,693 | ||||||
Intangible assets | 1,941 | 1,820 | ||||||
Debt issuance costs | 983 | 1,004 | ||||||
Deferred revenue | 297 | 319 | ||||||
Depreciable assets | 117 | 82 | ||||||
Foreign exchange adjustment on note payable | — | 1,449 | ||||||
Other | 1,518 | 1,067 | ||||||
Valuation allowance | (283,636 | ) | (287,151 | ) | ||||
Deferred income tax assets | $ | 21,854 | $ | 26,529 | ||||
Deferred income tax liabilities: | ||||||||
Fair value of debt | $ | (17,205 | ) | $ | (16,946 | ) | ||
Deferred acquisition costs | (4,129 | ) | (4,147 | ) | ||||
Indefinite life intangibles | (2,924 | ) | (2,837 | ) | ||||
Investments | (450 | ) | (5,436 | ) | ||||
Other | (70 | ) | — | |||||
Deferred income tax liabilities | (24,778 | ) | (29,366 | ) | ||||
Net deferred income tax liabilities | $ | (2,924 | ) | $ | (2,837 | ) |
75 |
KINGSWAY FINANCIAL SERVICES INC. Notes to Consolidated Financial Statements |
Year of net operating loss | Expiration date | Net operating loss (in thousands) | |||||
2000 | 2020 | $ | 485 | ||||
2001 | 2021 | 186 | |||||
2006 | 2026 | 5,607 | |||||
2007 | 2027 | 62,308 | |||||
2008 | 2028 | 55,917 | |||||
2009 | 2029 | 515,335 | |||||
2010 | 2030 | 92,095 | |||||
2011 | 2031 | 45,311 | |||||
2012 | 2032 | 34,131 | |||||
2013 | 2033 | 31,049 | |||||
2014 | 2034 | 7,342 | |||||
2015 | 2035 | 118 |
(in thousands) | December 31, | |||||||
2015 | 2014 | |||||||
Unrecognized tax benefits - beginning of year | $ | — | $ | 3,201 | ||||
Gross additions - current year tax positions | — | — | ||||||
Gross additions - prior year tax positions | — | — | ||||||
Gross reductions - prior year tax positions | — | (1,256 | ) | |||||
Gross reductions - settlements with taxing authorities | — | (1,945 | ) | |||||
Impact due to expiration of statute of limitations | — | — | ||||||
Unrecognized tax benefits - end of year | $ | — | $ | — |
76 |
KINGSWAY FINANCIAL SERVICES INC. Notes to Consolidated Financial Statements |
(in thousands, except per share data) | Years ended December 31, | |||||||
2015 | 2014 | |||||||
Numerator: | ||||||||
Loss from continuing operations | $ | (11,415 | ) | $ | (14,666 | ) | ||
Less: net income attributable to noncontrolling interests | (162 | ) | (1,596 | ) | ||||
Less: dividends on preferred stock | (329 | ) | (300 | ) | ||||
Loss from continuing operations attributable to common shareholders | $ | (11,906 | ) | $ | (16,562 | ) | ||
Denominator: | ||||||||
Weighted average basic shares | ||||||||
Weighted average common shares outstanding | 19,710 | 17,398 | ||||||
Weighted average diluted shares | ||||||||
Weighted average common shares outstanding | 19,710 | 17,398 | ||||||
Effect of potentially dilutive securities | — | — | ||||||
Total weighted average diluted shares | 19,710 | 17,398 | ||||||
Basic loss from continuing operations per common share | $ | (0.60 | ) | $ | (0.95 | ) | ||
Diluted loss from continuing operations per common share | $ | (0.60 | ) | $ | (0.95 | ) |
77 |
KINGSWAY FINANCIAL SERVICES INC. Notes to Consolidated Financial Statements |
Number of Options Outstanding | Weighted-Average Exercise Price | Weighted-Average Remaining Contractual Term (in years) | Aggregate Intrinsic Value (in thousands) | |||||||||||
Outstanding at December 31, 2014 | 611,875 | $ | 4.50 | 3.2 | $ | 642 | ||||||||
Granted | — | — | ||||||||||||
Exercised | — | — | ||||||||||||
Expired or Forfeited | — | — | ||||||||||||
Outstanding at December 31, 2015 | 611,875 | $ | 4.50 | 2.2 | $ | 43 | ||||||||
Exercisable at December 31, 2015 | 611,875 | $ | 4.50 | 2.2 | $ | 43 |
Year ended December 31, 2014 | |||
Risk-free interest rate | 0.06% - 1.4% | ||
Dividend yield | — | ||
Expected volatility | 0.4 | % | |
Expected term (in years) | 0.78 - 4 |
Number of Restricted Stock Awards | Weighted-Average Grant Date Fair Value (per share) | ||||||
Unvested at December 31, 2014 | 1,972,345 | $ | 4.14 | ||||
Granted | — | — | |||||
Forfeited | (19,680 | ) | 4.14 | ||||
Unvested at December 31, 2015 | 1,952,665 | $ | 4.14 |
78 |
KINGSWAY FINANCIAL SERVICES INC. Notes to Consolidated Financial Statements |
79 |
KINGSWAY FINANCIAL SERVICES INC. Notes to Consolidated Financial Statements |
December 31, 2015 | |||||||||||||
Exercise Price | Date of Issue | Expiry Date | Remaining Contractual Life (in years) | Number Outstanding | |||||||||
$ | 5.00 | 16-Sep-13 | 15-Sep-23 | 7.7 | 3,280,790 | ||||||||
$ | 5.00 | 3-Feb-14 | 15-Sep-23 | 7.7 | 1,642,975 | ||||||||
Total: | 7.7 | 4,923,765 |
80 |
KINGSWAY FINANCIAL SERVICES INC. Notes to Consolidated Financial Statements |
(in thousands) | ||||||||||||
Unrealized Gains (Losses) on Fixed Maturities and Equity Investments | Foreign Currency Translation Adjustments | Total Accumulated Other Comprehensive Income | ||||||||||
Balance, January 1, 2014 | $ | 15,583 | $ | (5,982 | ) | $ | 9,601 | |||||
Other comprehensive (loss) income before reclassifications | (2,513 | ) | 30 | (2,483 | ) | |||||||
Amounts reclassified from accumulated other comprehensive income | 1,552 | — | 1,552 | |||||||||
Net current-period other comprehensive (loss) income | (961 | ) | 30 | (931 | ) | |||||||
Balance, December 31, 2014 | $ | 14,622 | $ | (5,952 | ) | $ | 8,670 | |||||
Other comprehensive (loss) income before reclassifications | (2,884 | ) | 929 | (1,955 | ) | |||||||
Amounts reclassified from accumulated other comprehensive income | 1,342 | 1,243 | 2,585 | |||||||||
Net current-period other comprehensive (loss) income | (1,542 | ) | 2,172 | 630 | ||||||||
Balance, December 31, 2015 | $ | 13,080 | $ | (3,780 | ) | $ | 9,300 |
(in thousands) | Years ended December 31, | |||||||
2015 | 2014 | |||||||
Reclassification of accumulated other comprehensive income from unrealized (losses) gains on fixed maturities and equity investments to: | ||||||||
Net realized gains | $ | (1,332 | ) | $ | (1,552 | ) | ||
Other-than-temporary impairment loss | (10 | ) | — | |||||
Loss from continuing operations before income tax expense (benefit) | (1,342 | ) | (1,552 | ) | ||||
Income tax expense (benefit) | — | — | ||||||
Net income (loss) | (1,342 | ) | (1,552 | ) | ||||
Reclassification of accumulated other comprehensive income from foreign currency translation adjustments to: | ||||||||
Loss on deconsolidation of subsidiary | (1,243 | ) | — | |||||
Loss from continuing operations before income tax expense (benefit) | (1,243 | ) | — | |||||
Income tax expense (benefit) | — | — | ||||||
Net income (loss) | (1,243 | ) | — | |||||
Total reclassification from accumulated other comprehensive income to net income (loss) | $ | (2,585 | ) | $ | (1,552 | ) |
81 |
KINGSWAY FINANCIAL SERVICES INC. Notes to Consolidated Financial Statements |
82 |
KINGSWAY FINANCIAL SERVICES INC. Notes to Consolidated Financial Statements |
(in thousands) | Years ended December 31, | |||||||
2015 | 2014 | |||||||
Revenues: | ||||||||
Insurance Underwriting: | ||||||||
Net premiums earned | $ | 117,433 | $ | 113,479 | ||||
Other income | 8,937 | 8,478 | ||||||
Total Insurance Underwriting | 126,370 | 121,957 | ||||||
Insurance Services: | ||||||||
Service fee and commission income | 22,966 | 24,659 | ||||||
Other income | 368 | 407 | ||||||
Total Insurance Services | 23,334 | 25,066 | ||||||
Total segment revenues | 149,704 | 147,023 | ||||||
Net premiums earned not allocated to segments | — | 4,114 | ||||||
Net investment income | 2,918 | 1,616 | ||||||
Net realized gains | 1,197 | 5,041 | ||||||
Other-than-temporary impairment loss | (10 | ) | — | |||||
Other income not allocated to segments | 6,157 | 430 | ||||||
Total revenues | $ | 159,966 | $ | 158,224 |
83 |
KINGSWAY FINANCIAL SERVICES INC. Notes to Consolidated Financial Statements |
(in thousands) | Years ended December 31, | |||||||
2015 | 2014 | |||||||
Segment operating (loss) income | ||||||||
Insurance Underwriting | $ | (1,147 | ) | $ | 1,290 | |||
Insurance Services | (628 | ) | 206 | |||||
Total segment operating (loss) income | (1,775 | ) | 1,496 | |||||
Net investment income | 2,918 | 1,616 | ||||||
Net realized gains | 1,197 | 5,041 | ||||||
Other-than-temporary impairment loss | (10 | ) | — | |||||
Other income and expenses not allocated to segments, net | (3,753 | ) | (4,887 | ) | ||||
Amortization of intangible assets | (1,244 | ) | (1,620 | ) | ||||
Contingent consideration benefit | 1,139 | 2,223 | ||||||
Impairment of asset held for sale | — | (1,180 | ) | |||||
Interest expense | (5,278 | ) | (5,645 | ) | ||||
Foreign exchange losses, net | (1,215 | ) | (419 | ) | ||||
Gain (loss) on change in fair value of debt | 1,458 | (10,953 | ) | |||||
Loss on disposal of subsidiary | — | (1,244 | ) | |||||
Loss on disposal of asset held for sale | — | (125 | ) | |||||
Loss on deconsolidation of subsidiary | (4,420 | ) | — | |||||
Equity in net loss of investee | (339 | ) | (190 | ) | ||||
Loss from continuing operations before income tax expense (benefit) | (11,322 | ) | (15,887 | ) | ||||
Income tax expense (benefit) | 93 | (1,221 | ) | |||||
Loss from continuing operations | $ | (11,415 | ) | $ | (14,666 | ) |
(in thousands) | Years ended December 31, | |||||||
2015 | 2014 | |||||||
Insurance Underwriting: | ||||||||
Private passenger auto liability | $ | 79,258 | $ | 76,031 | ||||
Auto physical damage | 38,175 | 37,448 | ||||||
Total Insurance Underwriting | 117,433 | 113,479 | ||||||
Net premiums earned not allocated to segments: | ||||||||
Allied lines | — | 1,944 | ||||||
Homeowners | — | 2,159 | ||||||
Other | — | 11 | ||||||
Total net premiums earned not allocated to segments | — | 4,114 | ||||||
Total net premiums earned | $ | 117,433 | $ | 117,593 |
84 |
KINGSWAY FINANCIAL SERVICES INC. Notes to Consolidated Financial Statements |
85 |
KINGSWAY FINANCIAL SERVICES INC. Notes to Consolidated Financial Statements |
(in thousands) | December 31, 2015 | |||||||||||||||
Fair Value Measurements at the End of the Reporting Period Using | ||||||||||||||||
Total | Quoted Prices in Active Markets for Identical Assets(Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||
Recurring fair value measurements | ||||||||||||||||
Assets: | ||||||||||||||||
Fixed maturities: | ||||||||||||||||
U.S. government, government agencies and authorities | $ | 20,453 | $ | — | $ | 20,453 | $ | — | ||||||||
States, municipalities and political subdivisions | 2,256 | — | 2,256 | — | ||||||||||||
Mortgage-backed | 7,963 | — | 7,963 | — | ||||||||||||
Asset-backed securities and collateralized mortgage obligations | 6,023 | — | 6,023 | — | ||||||||||||
Corporate | 18,864 | — | 18,864 | — | ||||||||||||
Total fixed maturities | 55,559 | — | 55,559 | — | ||||||||||||
Equity investments: | ||||||||||||||||
Common stock | 26,586 | 26,586 | — | — | ||||||||||||
Warrants | 973 | 229 | 744 | — | ||||||||||||
Total equity investments | 27,559 | 26,815 | 744 | — | ||||||||||||
Other investments | 4,077 | — | 4,077 | — | ||||||||||||
Short-term investments | 400 | — | 400 | — | ||||||||||||
Total assets | $ | 87,595 | $ | 26,815 | $ | 60,780 | $ | — | ||||||||
Liabilities: | ||||||||||||||||
Subordinated debt | $ | 39,898 | $ | — | $ | 39,898 | $ | — | ||||||||
Contingent consideration | 1,982 | — | — | 1,982 | ||||||||||||
Total liabilities | $ | 41,880 | $ | — | $ | 39,898 | $ | 1,982 |
86 |
KINGSWAY FINANCIAL SERVICES INC. Notes to Consolidated Financial Statements |
(in thousands) | December 31, 2014 | |||||||||||||||
Fair Value Measurements at the End of the Reporting Period Using | ||||||||||||||||
Total | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||
Recurring fair value measurements | ||||||||||||||||
Assets: | ||||||||||||||||
Fixed maturities: | ||||||||||||||||
U.S. government, government agencies and authorities | $ | 20,759 | $ | — | $ | 20,759 | $ | — | ||||||||
Canadian government | 4,242 | — | 4,242 | — | ||||||||||||
States, municipalities and political subdivisions | 3,419 | — | 3,419 | — | ||||||||||||
Mortgage-backed | 5,352 | — | 5,352 | — | ||||||||||||
Asset-backed securities and collateralized mortgage obligations | 7,214 | — | 7,214 | — | ||||||||||||
Corporate | 15,209 | — | 15,209 | — | ||||||||||||
Total fixed maturities | 56,195 | — | 56,195 | — | ||||||||||||
Equity investments: | ||||||||||||||||
Common stock | 19,526 | 19,526 | — | — | ||||||||||||
Warrants | 92 | 92 | — | — | ||||||||||||
Total equity investments | 19,618 | 19,618 | — | — | ||||||||||||
Other investments | 3,576 | — | 3,576 | — | ||||||||||||
Short-term investments | 400 | — | 400 | — | ||||||||||||
Total assets | $ | 79,789 | $ | 19,618 | $ | 60,171 | $ | — | ||||||||
Liabilities: | ||||||||||||||||
LROC preferred units | $ | 13,618 | $ | 13,618 | $ | — | $ | — | ||||||||
Subordinated debt | 40,659 | — | 40,659 | — | ||||||||||||
Contingent consideration | 3,121 | — | — | 3,121 | ||||||||||||
Total liabilities | $ | 57,398 | $ | 13,618 | $ | 40,659 | $ | 3,121 |
(in thousands) | Years ended December 31, | |||||||
2015 | 2014 | |||||||
Liabilities: | ||||||||
Contingent consideration: | ||||||||
Beginning balance | $ | 3,121 | $ | 5,344 | ||||
Change in fair value of contingent consideration included in net income (loss) | (1,139 | ) | (2,223 | ) | ||||
Ending balance | $ | 1,982 | $ | 3,121 |
87 |
KINGSWAY FINANCIAL SERVICES INC. Notes to Consolidated Financial Statements |
88 |
KINGSWAY FINANCIAL SERVICES INC. Notes to Consolidated Financial Statements |
(in thousands) | ||||
2016 | $ | 1,584 | ||
2017 | 1,561 | |||
2018 | 873 | |||
2019 | 666 | |||
2020 | 18 | |||
Thereafter | 70 |
89 |
KINGSWAY FINANCIAL SERVICES INC. Notes to Consolidated Financial Statements |
(in thousands) | December 31, | |||||||
2015 | 2014 | |||||||
Combined net income, statutory basis | $ | 6,298 | $ | 2,725 | ||||
Combined capital and surplus, statutory basis | $ | 42,387 | $ | 39,042 |
90 |
KINGSWAY FINANCIAL SERVICES INC. |
91 |
KINGSWAY FINANCIAL SERVICES INC. |
92 |
KINGSWAY FINANCIAL SERVICES INC. |
93 |
KINGSWAY FINANCIAL SERVICES INC. |
94 |
KINGSWAY FINANCIAL SERVICES INC. |
95 |
KINGSWAY FINANCIAL SERVICES INC. |
(in thousands) | December 31, 2015 | |||||||||||
Cost or Amortized Cost | Fair Value | Amount Shown on Consolidated Balance Sheet | ||||||||||
Fixed maturities: | ||||||||||||
U.S. government, government agencies and authorities | $ | 20,443 | $ | 20,453 | $ | 20,453 | ||||||
States, municipalities and political subdivisions | 2,241 | 2,256 | 2,256 | |||||||||
Mortgage-backed | 7,997 | 7,963 | 7,963 | |||||||||
Asset-backed securities and collateralized mortgage obligations | 6,040 | 6,023 | 6,023 | |||||||||
Corporate | 18,885 | 18,864 | 18,864 | |||||||||
Total fixed maturities | 55,606 | 55,559 | 55,559 | |||||||||
Equity investments: | ||||||||||||
Common stock | 25,177 | 26,586 | 26,586 | |||||||||
Warrants | 1,251 | 973 | 973 | |||||||||
Total equity investments | 26,428 | 27,559 | 27,559 | |||||||||
Limited liability investments | 20,141 | — | 20,141 | |||||||||
Other investments | 4,077 | — | 4,077 | |||||||||
Short-term investments | 400 | — | 400 | |||||||||
Total investments | $ | 106,652 | $ | 83,118 | $ | 107,736 |
96 |
KINGSWAY FINANCIAL SERVICES INC. |
(in thousands) | December 31, 2015 | December 31, 2014 | ||||||
Assets | ||||||||
Investments in subsidiaries | $ | 43,878 | $ | 38,599 | ||||
Equity investments | 2,555 | — | ||||||
Cash and cash equivalents | 2,332 | 6,694 | ||||||
Other assets | 2,503 | 3,251 | ||||||
Total Assets | $ | 51,268 | $ | 48,544 | ||||
Liabilities and Shareholders' Equity | ||||||||
Liabilities: | ||||||||
Accrued expenses and other liabilities | $ | 1,171 | $ | 348 | ||||
Total Liabilities | 1,171 | 348 | ||||||
Class A preferred stock | 6,394 | 6,330 | ||||||
Shareholders' Equity: | ||||||||
Common stock | — | — | ||||||
Additional paid-in capital | 341,646 | 340,844 | ||||||
Accumulated deficit | (308,995 | ) | (312,050 | ) | ||||
Accumulated other comprehensive income | 9,300 | 8,670 | ||||||
Shareholders' equity attributable to common shareholders | 41,951 | 37,464 | ||||||
Noncontrolling interests in consolidated subsidiaries | 1,752 | 4,402 | ||||||
Total Shareholders' Equity | 43,703 | 41,866 | ||||||
Total Liabilities and Shareholders' Equity | $ | 51,268 | $ | 48,544 |
97 |
KINGSWAY FINANCIAL SERVICES INC. |
(in thousands) | Years ended December 31, | |||||||
2015 | 2014 | |||||||
Revenues: | ||||||||
Net investment income | $ | 5 | $ | 7 | ||||
Total revenues | 5 | 7 | ||||||
Expenses: | ||||||||
General and administrative expenses | 2,715 | 2,796 | ||||||
Foreign exchange losses, net | 553 | 298 | ||||||
Total expenses | 3,268 | 3,094 | ||||||
Loss from continuing operations before income tax benefit and equity in income (loss) of subsidiaries | (3,263 | ) | (3,087 | ) | ||||
Income tax benefit | — | (341 | ) | |||||
Equity in income (loss) of subsidiaries | 4,532 | (8,478 | ) | |||||
Net income (loss) | $ | 1,269 | $ | (11,224 | ) |
98 |
KINGSWAY FINANCIAL SERVICES INC. |
(in thousands) | Years ended December 31, | |||||||
2015 | 2014 | |||||||
Net income (loss) | $ | 1,269 | $ | (11,224 | ) | |||
Other comprehensive income (loss), net of taxes(1): | ||||||||
Unrealized (losses) gains on fixed maturities and equity investments: | ||||||||
Unrealized losses arising during the period | (588 | ) | — | |||||
Reclassification adjustment for amounts included in net income (loss) | — | — | ||||||
Foreign currency translation adjustments | — | (31 | ) | |||||
Other comprehensive loss - parent only | (588 | ) | (31 | ) | ||||
Equity in other comprehensive income (loss) of subsidiaries | 748 | (1,045 | ) | |||||
Other comprehensive income (loss) | 160 | (1,076 | ) | |||||
Comprehensive income (loss) | $ | 1,429 | $ | (12,300 | ) | |||
(1) Net of income tax expense (benefit) of $0 and $0 in 2015 and 2014 |
99 |
KINGSWAY FINANCIAL SERVICES INC. |
(in thousands) | Years ended December 31, | |||||||
2015 | 2014 | |||||||
Cash provided by (used in): | ||||||||
Operating activities: | ||||||||
Net income (loss) | $ | 1,269 | $ | (11,224 | ) | |||
Adjustments to reconcile net income (loss) to net cash used in operating activities: | ||||||||
Equity in net (income) loss of subsidiaries | (4,532 | ) | 8,478 | |||||
Stock-based compensation expense, net of forfeitures | 802 | 1,239 | ||||||
Other, net | 1,242 | (146 | ) | |||||
Net cash used in operating activities | (1,219 | ) | (1,653 | ) | ||||
Investing activities: | ||||||||
Purchases of equity investments | (3,143 | ) | — | |||||
Net cash used in investing activities | (3,143 | ) | — | |||||
Financing activities: | ||||||||
Proceeds from issuance of preferred stock, net | — | 6,330 | ||||||
Proceeds from exercise of warrants | — | 14,803 | ||||||
Capital contributions to subsidiaries | (500 | ) | (19,500 | ) | ||||
Cash dividends received from subsidiaries | 500 | 2,152 | ||||||
Net cash provided by financing activities | — | 3,785 | ||||||
Net (decrease) increase in cash and cash equivalents | (4,362 | ) | 2,132 | |||||
Cash and cash equivalents at beginning of period | 6,694 | 4,562 | ||||||
Cash and cash equivalents at end of period | $ | 2,332 | $ | 6,694 |
100 |
KINGSWAY FINANCIAL SERVICES INC. |
(in thousands) | December 31, | Years ended December 31, | ||||||||||||||||||||||||||||||
Deferred Acquisition Costs | Unpaid Loss and Loss Adjustment Expenses | Unearned Premiums | Net Premiums Earned | Loss and Loss Adjustment Expenses | Amortization of Deferred Acquisition Costs | Other Operating Expenses | Net Premiums Written | |||||||||||||||||||||||||
2015 | ||||||||||||||||||||||||||||||||
Insurance Underwriting | $ | 6,696 | $ | 55,471 | $ | 35,234 | $ | 117,433 | $ | 87,055 | $ | 23,333 | $ | 17,130 | $ | 116,239 | ||||||||||||||||
Amounts not allocated to segments | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Total | $ | 6,696 | $ | 55,471 | $ | 35,234 | $ | 117,433 | $ | 87,055 | $ | 23,333 | $ | 17,130 | $ | 116,239 | ||||||||||||||||
2014 | ||||||||||||||||||||||||||||||||
Insurance Underwriting | $ | 6,786 | $ | 63,895 | $ | 36,432 | $ | 113,479 | $ | 79,070 | $ | 21,713 | $ | 19,888 | $ | 118,021 | ||||||||||||||||
Amounts not allocated to segments | — | — | — | 4,114 | 384 | 881 | 563 | 5,357 | ||||||||||||||||||||||||
Total | $ | 6,786 | $ | 63,895 | $ | 36,432 | $ | 117,593 | $ | 79,454 | $ | 22,594 | $ | 20,451 | $ | 123,378 |
101 |
KINGSWAY FINANCIAL SERVICES INC. |
(in thousands, except for percentages) | Years ended December 31, | ||||||||||||||||||
Direct Premiums Written | Premiums Ceded to Other Companies | Premiums Assumed from Other Companies | Net Premiums Written | Percentage of Premiums Assumed to Net | |||||||||||||||
2015 | $ | 97,414 | $ | 165 | $ | 18,990 | $ | 116,239 | 16.3 | % | |||||||||
2014 | $ | 99,540 | $ | (3,695 | ) | $ | 20,143 | $ | 123,378 | 16.3 | % |
102 |
KINGSWAY FINANCIAL SERVICES INC. |
(in thousands) | ||||||||||||||||
Balance at Beginning of Year | Charged to Expense | Disposals and Other | Balance at End of Year | |||||||||||||
Valuation Allowance for Deferred Tax Assets: | ||||||||||||||||
Year Ended December 31, 2015 | $ | 287,151 | $ | 1,033 | $ | (4,548 | ) | $ | 283,636 | |||||||
Year Ended December 31, 2014 | $ | 281,613 | $ | 5,686 | $ | (148 | ) | $ | 287,151 |
103 |
KINGSWAY FINANCIAL SERVICES INC. |
(in thousands) | ||||||||||||||||||||||||||||||
Loss and Loss Adjustment Expenses Related to | ||||||||||||||||||||||||||||||
Affiliation with Registrant (1) | Deferred Acquisition Costs | Unpaid Loss and Loss Adjustment Expenses | Unearned Premiums | Net Earned Premiums | Net Investment Income | Current Year | Prior Years | Amortization of Deferred Acquisition Costs | Paid Loss and Loss Adjustment Expenses | Net Premiums Written | ||||||||||||||||||||
Year ended December 31, 2015 | ||||||||||||||||||||||||||||||
$ | 6,696 | $ | 55,471 | $ | 35,234 | $ | 117,433 | $ | 2,811 | $ | 86,439 | $ | 616 | $ | 23,333 | $ | 93,483 | $ | 116,239 | |||||||||||
Year ended December 31, 2014 | ||||||||||||||||||||||||||||||
$ | 6,786 | $ | 63,895 | $ | 36,432 | $ | 117,593 | $ | 1,281 | $ | 84,577 | $ | (5,123 | ) | $ | 22,594 | $ | 94,949 | $ | 123,378 |
104 |
KINGSWAY FINANCIAL SERVICES INC. |
KINGSWAY FINANCIAL SERVICES INC. | |||
Date: | March 10, 2016 | By: | /s/ Larry G. Swets, Jr. |
Name: | Larry G. Swets, Jr. | ||
Title: | President, Chief Executive Officer and Director | ||
(Principal Executive Officer) |
/s/ Larry G. Swets, Jr. Larry G. Swets, Jr. | President, Chief Executive Officer and Director (principal executive officer) | March 10, 2016 |
/s/ William A. Hickey, Jr. William A. Hickey, Jr. | Executive Vice President, Chief Operating Officer and Chief Financial Officer (principal financial and accounting officer) | March 10, 2016 |
/s/ Terence Kavanagh Terence Kavanagh | Chairman of the Board and Director | March 10, 2016 |
/s/ Gregory Hannon Gregory Hannon | Director | March 10, 2016 |
/s/ Gary Schaevitz Gary Schaevitz | Director | March 10, 2016 |
/s/ Joseph Stilwell Joseph Stilwell | Director | March 10, 2016 |
105 |
KINGSWAY FINANCIAL SERVICES INC. |
Exhibit | Description |
2.1 | Stock Purchase Agreement, dated April 1, 2015, by and between National General Holdings Corp., as Buyer, and Kingsway America Inc. and Mendota Insurance Company, as Sellers (included as Exhibit 2.1 to the Form 8-K, filed April 7, 2015, and incorporated herein by reference). |
3.1 | Certificate of Amendment to the Articles of Incorporation of Kingsway Financial Services Inc. (included as Exhibit 3.1 to the Form 10-Q, filed November 7, 2013, and incorporated herein by reference). |
3.2 | By-law No. 5 of Kingsway Financial Services Inc. (included as Exhibit 3.2 to the Form 10-K, filed March 30, 2012, and incorporated herein by reference). |
4.1 | Indenture dated January 28, 2004 among Kingsway America Inc., Kingsway Financial Services Inc. and BNY Midwest Trust Company (included as Exhibit 4.1 to the Form F-4, filed May 27, 2004, and incorporated herein by reference). |
4.2 | Trust Indenture dated July 10, 2007 among Kingsway 2007 General Partnership, Kingsway Financial Services Inc., Kingsway America Inc., and Computershare Trust Company of Canada (included as Exhibit 4.2 to the Form 10-K, filed March 30, 2012, and incorporated herein by reference). |
4.3 | Indenture dated December 4, 2002 between Kingsway America Inc. and State Street Bank and Trust Company of Connecticut, National Association (included as Exhibit 4.3 to the Form 10-K, filed March 30, 2012, and incorporated herein by reference). |
4.4 | Indenture dated May 15, 2003 between Kingsway America Inc. and U.S. Bank National Association (included as Exhibit 4.4 to the Form 10-K, filed March 30, 2012, and incorporated herein by reference). |
4.5 | Indenture dated October 29, 2003 between Kingsway America Inc. and U.S. Bank National Association (included as Exhibit 4.5 to the Form 10-K, filed March 30, 2012, and incorporated herein by reference). |
4.6 | Indenture dated May 22, 2003 between Kingsway America Inc., Kingsway Financial Services Inc., and Wilmington Trust Company (included as Exhibit 4.6 to the Form 10-K, filed March 30, 2012, and incorporated herein by reference). |
4.7 | Junior Subordinated Indenture dated September 30, 2003 between Kingsway America Inc. and J.P Morgan Chase Bank (included as Exhibit 4.7 to the Form 10-K, filed March 30, 2012, and incorporated herein by reference). |
4.8 | Indenture dated December 16, 2003 between Kingsway America Inc., Kingsway Financial Services Inc., and Wilmington Trust Company (included as Exhibit 4.8 to the Form 10-K, filed March 30, 2012, and incorporated herein by reference). |
4.9 | Excerpt of the Articles of Amendment to the Articles of Incorporation of the Company (included as Exhibit 4.1 to the Form 8-K, filed December 27, 2013, and incorporated herein by reference). |
4.10 | Form of Common Stock Series C Warrant Agreement (included as Exhibit 4.2 to the Form 8-K, filed December 27, 2013, and incorporated herein by reference). |
4.11 | Amended and Restated Common Stock Series B Warrant Agreement, dated July 8, 2014 (included as Exhibit 4.1 to the Form 8-K, filed July 10, 2014, and incorporated herein by reference). |
10.1 | Amended and Restated Stock Option Plan of Kingsway Financial Services Inc., dated as of May 2001 and amended most recently as of May 2007 (included as Exhibit 10.1 to the Form 10-K, filed March 30, 2012, and incorporated herein by reference). * |
10.2 | Purchase Agreement, dated January 25, 2010, between The Westaim Corporation and Kingsway Financial Services Inc. (included as Exhibit 10.2 to the Form 10-K, filed March 30, 2012, and incorporated herein by reference). |
10.3 | Second Amendment to and Assignment and Assumption of Purchase Agreement, dated June 21, 2010, by and among FH Enterprises Inc., JBA Associates Inc., the four individual holders of all of JBA's voting securities, and Kingsway America Inc. (included as Exhibit 10.3 to the Form 10-K, filed March 30, 2012, and incorporated herein by reference). |
10.4 | Tax Benefit Preservation Plan Agreement, dated as of September 28, 2010, between Kingsway Financial Services Inc. and Computershare Investor Services Inc. (included as Exhibit 10.4 to the Form 10-K, filed March 30, 2012, and incorporated herein by reference). |
106 |
KINGSWAY FINANCIAL SERVICES INC. |
10.5 | Agreement and Plan of Merger, dated December 14, 2010, among JJR VI Acquisition Corp., Atlas Acquisition Corp., Kingsway Financial Services Inc., and American Insurance Acquisition Inc. (included as Exhibit 10.5 to the Form 10-K, filed March 30, 2012, and incorporated herein by reference). |
10.6 | Operating Agreement of Acadia GP, LLC dated March 16, 2011 (included as Exhibit 10.8 to the March 31, 2011 Form 10-Q, filed March 27, 2012, and incorporated herein by reference). |
10.7 | Stock Purchase Agreement dated March 30, 2011 between HRM Acquisition Corp. and Kingsway America Inc. (included as Exhibit 10.1 to the March 31, 2011 Form 10-Q, filed March 27, 2012, and incorporated herein by reference). |
10.8 | Senior Promissory Note dated March 30, 2011 issued by HRM Acquisition Corp. to Kingsway America Inc. (included as Exhibit 10.2 to the March 31, 2011 Form 10-Q, filed March 27, 2012, and incorporated herein by reference). |
10.9 | Junior Promissory Note dated March 30, 2011 issued by HRM Acquisition Corp to Kingsway America Inc. (included as Exhibit 10.3 to the March 31, 2011 Form 10-Q, filed March 27, 2012, and incorporated herein by reference). |
10.10 | Note Purchase Agreement dated March 30, 2011 between HRM Acquisition Corp. and United Property and Casualty Insurance Company (included as Exhibit 10.4 to the March 31, 2011 Form 10-Q, filed March 27, 2012, and incorporated herein by reference). |
10.11 | Promissory Note dated March 30, 2011 issued by HRM Acquisition Corp. to United Property and Casualty Insurance Company (included as Exhibit 10.5 to the March 31, 2011 Form 10-Q, filed March 27, 2012, and incorporated herein by reference). |
10.12 | Agreement of Limited Partnership dated March 30, 2011 between Acadia GP, LLC (in its capacity as a general partner of Acadia Acquisition Partners, L.P.) and limited partners (including United Property and Casualty Insurance Company) (included as Exhibit 10.6 to the March 31, 2011 Form 10-Q, filed March 27, 2012, and incorporated herein by reference). |
10.13 | Intercreditor Agreement dated March 30, 2011 between HRM Acquisition Corp. and Kingsway America Inc. (included as Exhibit 10.7 to the March 31, 2011 Form 10-Q, filed March 27, 2012, and incorporated herein by reference). |
10.14 | Subscription and Investment Representation Agreement dated March 30, 2011 (included as Exhibit 10.9 to the March 31, 2011 Form 10-Q, filed March 27, 2012, and incorporated herein by reference). |
10.15 | Management Services Agreement between United Insurance Management, L.C. and 1347 Advisors LLC, effective August 29, 2011 (included as Exhibit 10.1 to the September 30, 2011 Form 10-Q, filed March 27, 2012, and incorporated herein by reference). |
10.16 | Kingsway Financial Services Inc. 2013 Equity Incentive Plan (included as Schedule B to the Definitive Proxy Statement on Schedule 14A filed with the SEC on April 11, 2013, and incorporated herein by reference). * |
10.17 | Form of Subscription Agreement (included as Exhibit 10.1 to the Form 8-K, filed December 27, 2013, and incorporated herein by reference). |
10.18 | Registration Rights Agreement, dated February 3, 2014, by and among the Company and the other parties signatory thereto (included as Exhibit 10.2 to the Form 8-K, filed February 4, 2014, and incorporated herein by reference). |
10.19 | Kingsway America Inc. Employee Share Purchase Plan (included as Schedule B to the Definitive Proxy Statement on Schedule 14A filed with the SEC on April 30, 2014 and incorporated herein by reference). * |
10.20 | Agreement to Buyout and Release dated February 24, 2015 between 1347 Advisors LLC and 1347 Property Insurance Holdings, Inc. (included as Exhibit 10.1 to the Form 8-K, filed February 27, 2015, and incorporated herein by reference). |
14 | Kingsway Financial Services Inc. Code of Business Conduct & Ethics (included as Exhibit 14 to the Form 10-K, filed March 30, 2012, and incorporated herein by reference). |
21 | Subsidiaries of Kingsway Financial Services Inc. |
23 | Consent of BDO USA, LLP |
31.1 | Certification of Chief Executive Officer pursuant to Rule 13a-14(a) of the Exchange Act |
31.2 | Certification of Chief Financial Officer pursuant to Rule 13a-14(a) of the Exchange Act |
107 |
KINGSWAY FINANCIAL SERVICES INC. |
32.1 | Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |
32.2 | Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |
101.INS | XBRL Instance Document |
101.SCH | XBRL Taxonomy Extension Schema |
101.CAL | XBRL Taxonomy Extension Calculation Linkbase |
101.DEF | XBRL Taxonomy Extension Definition Linkbase |
101.LAB | XBRL Taxonomy Extension Label Linkbase |
101.PRE | XBRL Taxonomy Extension Presentation Linkbase |
108 |
Subsidiaries | Jurisdiction of Incorporation/Organization |
Kingsway America II Inc. | Delaware |
1347 Advisors LLC | Delaware |
1347 Capital LLC | Delaware |
1347 Investors LLC | Delaware |
Itasca Investors LLC | Delaware |
Itasca Capital Corp. | Delaware |
IWS Acquisition Corporation | Florida |
Trinity Warranty Solutions LLC | Delaware |
American Country Underwriting Agency Inc. | Illinois |
ARM Holdings, Inc. | Illinois |
Mattoni Insurance Brokerage, Inc. | Washington |
Hamilton Risk Management Company | Florida |
Appco Finance Corporation | Pennsylvania |
Insurance Management Services Inc. | Florida |
Kingsway Amigo Insurance Company | Florida |
KAI Advantage Auto, Inc. | Illinois |
KFS Capital LLC | Delaware |
Kingsway America Inc. | Delaware |
Kingsway LGIC Holdings, LLC | Delaware |
Mendota Insurance Company | Minnesota |
Boston General Agency, Inc. | Texas |
Congress General Agency, Inc. | Texas |
Mendakota Casualty Company (f/k/a Universal Casualty Company) | Illinois |
Mendakota Insurance Company | Minnesota |
Mendota Insurance Agency, Inc. | Texas |
MIC Insurance Agency Inc. | Texas |
Kingsway America Agency Inc. | Illinois |
Kingsway General Insurance Company | Ontario |
Kingsway Reinsurance Corporation | Barbados |
Kingsway ROC GP | Delaware |
Kingsway ROC LLC | Delaware |
Document and Entity Information Document - USD ($) |
12 Months Ended | |||
---|---|---|---|---|
Dec. 31, 2015 |
Mar. 10, 2016 |
Jun. 30, 2015 |
Dec. 31, 2014 |
|
Entity Information [Line Items] | ||||
Entity Registrant Name | KINGSWAY FINANCIAL SERVICES INC. | |||
Entity Central Index Key | 0001072627 | |||
Current Fiscal Year End Date | --12-31 | |||
Entity Filer Category | Smaller Reporting Company | |||
Document Type | 10-K | |||
Document Period End Date | Dec. 31, 2015 | |||
Document Fiscal Year Focus | 2015 | |||
Document Fiscal Period Focus | FY | |||
Amendment Flag | false | |||
Common Stock, Shares, Outstanding | 19,709,706 | 19,709,706 | 19,709,706 | |
Entity Well-known Seasoned Issuer | No | |||
Entity Voluntary Filers | No | |||
Entity Current Reporting Status | Yes | |||
Entity Public Float | $ 77,000,523 |
Balance Sheets (Parenthetical) - USD ($) $ in Thousands |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|
Assets [Abstract] | ||
Amortized Cost, Fixed Maturities | $ 55,606 | $ 56,000 |
Equity investments, cost | 26,428 | 16,579 |
Premiums receivable, allowance for doubtful accounts | 165 | 1,889 |
Allowance for Doubtful Accounts, Premiums and Other Receivables | 276 | 247 |
Accumulated Depreciation | 12,537 | 15,751 |
Other receivables, allowance for doubtful accounts | 806 | 806 |
Amortization of intangible assets | $ 6,009 | $ 4,765 |
Equity [Abstract] | ||
Common stock, shares outstanding | 19,709,706 | 19,709,706 |
Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Net loss | $ (11,415) | $ (14,666) |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 1,269 | (11,224) |
Unrealized Gain (Loss) on Investments [Abstract] | ||
Unrealized losses arising during the period | (3,505) | (2,597) |
Reclassification adjustment for amounts included in net income (loss) | 1,564 | 1,552 |
Foreign currency translation adjustments | 858 | (31) |
Recognition of currency translation loss on deconsolidation of subsidiary | 1,243 | 0 |
Other comprehensive income (loss) | 160 | (1,076) |
Comprehensive income (loss) | 1,429 | (12,300) |
Less: comprehensive (loss) income attributable to noncontrolling interests in consolidated subsidiaries | (308) | 1,451 |
Comprehensive income (loss) attributable to common shareholders | $ 1,737 | $ (13,751) |
Business |
12 Months Ended |
---|---|
Dec. 31, 2015 | |
Business [Abstract] | |
Nature of Operations [Text Block] | BUSINESS Kingsway Financial Services Inc. (the "Company" or "Kingsway") was incorporated under the Business Corporations Act (Ontario) on September 19, 1989. Kingsway is a Canadian holding company with operating subsidiaries located in the United States. The Company operates as a merchant bank primarily engaged, through its subsidiaries, in the property and casualty insurance business. |
Summary of Significant Accounting Policies |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of significant accounting policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Significant Accounting Policies [Text Block] | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accompanying information in the 2015 Annual Report has been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"). Certain prior year amounts have been reclassified to conform to current year presentation. Such reclassifications had no impact on previously reported net income (loss) or total shareholders' equity. Subsidiaries The Company's consolidated financial statements include the assets, liabilities, shareholders' equity, revenues, expenses and cash flows of the holding company and its subsidiaries and have been prepared on the basis of U.S. GAAP. A subsidiary is an entity which is controlled, directly or indirectly, through ownership of more than 50% of the outstanding voting rights, or where the Company has the power to govern the financial and operating policies so as to obtain benefits from its activities. Assessment of control is based on the substance of the relationship between the Company and the entity and includes consideration of both existing voting rights and, if applicable, potential voting rights that are currently exercisable and convertible. The operating results of subsidiaries that have been disposed of are included up to the date control ceased and any difference between the fair value of the consideration received and the carrying value of the subsidiary are recognized in the consolidated statements of operations. All intercompany balances and transactions are eliminated in full. The consolidated financial statements are prepared as of December 31, 2015 based on individual company financial statements at the same date. Accounting policies of subsidiaries have been aligned where necessary to ensure consistency with those of Kingsway. The consolidated financial statements include the following subsidiaries, all of which are owned, directly or indirectly: 1347 Advisors LLC ("1347 Advisors"); 1347 Capital LLC; 1347 Investors LLC ("1347 Investors"); Appco Finance Corporation; American Country Underwriting Agency Inc.; ARM Holdings, Inc.; Boston General Agency, Inc.; Congress General Agency, Inc.; Hamilton Risk Management Company; Insurance Management Services Inc.; Itasca Capital Corp.; Itasca Investors LLC; IWS Acquisition Corporation ("IWS"); KAI Advantage Auto, Inc.; KFS Capital LLC ("KFS Capital"); Kingsway America II Inc.; Kingsway America Inc. ("KAI"); Kingsway America Agency Inc.; Kingsway Amigo Insurance Company ("Amigo"); Kingsway General Insurance Company; Kingsway LGIC Holdings, LLC; Kingsway Reinsurance Corporation; Kingsway ROC GP; Mattoni Insurance Brokerage, Inc.; Mendakota Casualty Company (formerly Universal Casualty Company) ("MCC"); Mendakota Insurance Company ("Mendakota"); Mendota Insurance Agency, Inc.; Mendota Insurance Company ("Mendota"); MIC Insurance Agency Inc.; and Trinity Warranty Solutions LLC ("Trinity"). Noncontrolling interests The Company has noncontrolling interests attributable to its subsidiaries, 1347 Investors and IWS. The Company previously had a noncontrolling interest attributable to Kingsway Linked Return of Capital Trust ("KLROC Trust") prior to its deconsolidation in June 2015. Refer to Note 4, "Disposition, Deconsolidation and Discontinued Operations," for information regarding the deconsolidation of KLROC Trust. A noncontrolling interest arises where the Company owns less than 100% of the voting rights and economic interests in a subsidiary and is initially recognized at the proportionate share of the identifiable net assets of the subsidiary at the acquisition date and is subsequently adjusted for the noncontrolling interest's share of the acquiree's net income (losses) and changes in capital. The effects of transactions with noncontrolling interests are recorded in shareholders' equity where there is no change of control.
The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect application of policies and the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the year. Actual results could differ from these estimates. Estimates and their underlying assumptions are reviewed on an ongoing basis. Changes in estimates are recorded in the accounting period in which they are determined. The critical accounting estimates and assumptions in the accompanying consolidated financial statements include the provision for unpaid loss and loss adjustment expenses; valuation of fixed maturities and equity investments; valuation of deferred income taxes; impairment assessment of intangible assets; goodwill recoverability; deferred acquisition costs; fair value assumptions for performance shares; fair value assumptions for debt obligations; and contingent consideration. (c)Foreign currency translation: The consolidated financial statements have been presented in U.S. dollars because the Company's principal investments and cash flows are denominated in U.S. dollars. The Company's functional currency is the U.S. dollar since the substantial majority of its operations is conducted in the United States. Assets and liabilities of subsidiaries with non-U.S. dollar functional currencies are translated to U.S. dollars at period-end exchange rates, while revenue and expenses are translated at average monthly rates and shareholders' equity is translated at the rates in effect at dates of capital transactions. The net unrealized gains or losses which result from the translation of non-U.S. subsidiaries financial statements are recognized in accumulated other comprehensive income. Such currency translation gains or losses are recognized in the consolidated statements of operations upon the sale of a foreign subsidiary. Transactions settled in foreign currencies are translated to functional currencies at the exchange rate prevailing at the transaction dates. The unrealized foreign currency translation gains and losses arising from available-for-sale financial assets are recognized in other comprehensive income (loss) until realized, at which date they are reclassified to the consolidated statements of operations. Unrealized foreign currency translation gains and losses on certain interest bearing debt obligations carried at fair value are included in the consolidated statements of operations. Foreign currency translation adjustments are included in shareholders' equity under the caption accumulated other comprehensive income. Foreign currency gains and losses resulting from transactions which are denominated in currencies other than the entity's functional currency are reflected in foreign exchange losses, net in the consolidated statements of operations.
The acquisition method of accounting is used to account for acquisitions of subsidiaries or other businesses. The results of acquired subsidiaries or other businesses are included in the consolidated statements of operations from the date of acquisition. The cost of an acquisition is measured as the fair value of the assets received, equity instruments issued and liabilities incurred or assumed at the date of exchange. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date, irrespective of the extent of any noncontrolling interest. The excess of the cost of an acquisition over the fair value of the Company's share of the identifiable net assets acquired is recorded as goodwill. If the cost of acquisition is less than the fair value of the net assets of the subsidiary acquired, the difference is recognized in the consolidated statements of operations. Noncontrolling interests in the net assets of consolidated entities are reported separately in shareholders' equity.
Investments in fixed maturities and equity investments in common stocks and warrants are classified as available-for-sale and reported at fair value. Unrealized gains and losses are included in accumulated other comprehensive income, net of tax, until sold or until an other-than-temporary impairment is recognized, at which point cumulative unrealized gains or losses are transferred to the consolidated statements of operations. Limited liability investments include investments in limited liability companies and limited partnerships in which the Company's interests are not deemed minor and, therefore, are accounted for under the equity method of accounting. Other investments include mortgage and collateral loans and are reported at their unpaid principal balance. Short-term investments, which consist of investments with original maturities between three months and one year, are reported at cost which approximates fair value. Realized gains and losses on sales, determined on a first-in first-out basis, are included in net realized gains. Dividends and interest income are included in net investment income. Investment income is recorded as it accrues. Income from limited liability investments is recognized based on the Company's share of the earnings of the limited liability entities and is included in net investment income. The Company accounts for all financial instruments using trade date accounting. The Company conducts a quarterly review to identify and evaluate investments that show objective indications of possible impairment. Impairment is charged to the consolidated statements of operations if the fair value of an instrument falls below its cost/amortized cost and the decline is considered other-than-temporary. Factors considered in determining whether a loss is other-than-temporary include the length of time and extent to which fair value has been below cost; the financial condition and near-term prospects of the issuer; and the Company's ability and intent to hold investments for a period of time sufficient to allow for any anticipated recovery.
Derivative financial instruments include investments in warrants and performance shares issued to the Company under various performance share grant agreements. Refer to Note 24, "Related Party Transactions," for further details regarding the performance shares. Warrants are classified as equity investments in the consolidated balance sheets. The Company measures derivative financial instruments at fair value. The fair value of derivative financial instruments is required to be revalued each reporting period, with corresponding changes in fair value recorded in the consolidated statements of operations, or, in the case of derivative financial instruments that are actively traded, in other comprehensive income (loss). Realized gains or losses are recognized upon settlement of the contracts.
Cash and cash equivalents include cash and investments with original maturities of three months or less that are readily convertible into cash.
The investment in common stock and private units of the Company's investee, 1347 Capital Corp. is accounted for under the equity method of accounting and reported as investment in investee in the consolidated balance sheets. Investment in investee is comprised of an investment in an entity where the Company has the ability to exercise significant influence but not control. Significant influence is presumed to exist when the Company owns, directly or indirectly, between 20% and 50% of the outstanding voting rights of the investee. Assessment of significant influence is based on the substance of the relationship between the Company and the investee and includes consideration of both existing voting rights and, if applicable, potential voting rights that are currently exercisable and convertible. This investment is reported as investment in investee in the consolidated balance sheets, with the Company's share of income (loss) and other comprehensive income (loss) of the investee reported in the corresponding line in the consolidated statements of operations and consolidated statements of comprehensive income (loss), respectively. Under the equity method of accounting, an investment in investee is initially recognized at cost and adjusted thereafter for the post-acquisition change in the Company's share of net assets of the investee. At each reporting date, and more frequently when conditions warrant, management assesses its investment in investee for potential impairment. If management's assessment indicates that there is objective evidence of impairment, the investee is written down to its recoverable amount, which is determined as the higher of its fair value less costs to sell and its value in use. Write-downs to reflect other-than-temporary impairments in value are included in other-than-temporary impairment loss in the consolidated statements of operations. The most recently available financial statements of the investee are used in applying the equity method. Adjustments are made for the effects of significant transactions or events that occur between the date of the investee's financial statements and the date of the Company's consolidated financial statements.
Premiums and service fee receivables include balances due and uncollected and installment premiums not yet due from agents and insureds. Premiums and service fee receivables are reported net of an estimated allowance for doubtful accounts.
Reinsurance premiums, losses, and loss adjustment expenses are accounted for on a basis consistent with those used in accounting for the original policies issued and the terms of the reinsurance contracts. Premiums and losses ceded to other companies have been reported as a reduction of premium revenue and incurred loss and loss adjustment expenses. Commissions paid to the Company by reinsurers on business ceded have been accounted for as a reduction of the related policy acquisition costs. Reinsurance recoverable is recorded for that portion of paid and unpaid losses and loss adjustment expenses that are ceded to other companies. Prepaid reinsurance premiums are recorded for unearned premiums that have been ceded to other companies.
The Company defers commissions, premium taxes and other underwriting and agency expenses that are directly related to successful efforts to acquire new or existing insurance policies and vehicle service agreements to the extent they are considered recoverable. Costs deferred on property and casualty insurance products are amortized over the period in which premiums are earned. Costs deferred on vehicle service agreements are amortized as the related revenues are earned. The method followed in determining the deferred acquisition costs limits the deferral to its realizable value by giving consideration to estimated future loss and loss adjustment expenses to be incurred as revenues are earned. Changes in estimates, if any, are recorded in the accounting period in which they are determined. Anticipated investment income is included in determining the realizable value of the deferred acquisition costs. The Company's deferred acquisition costs are reported net of ceding commissions.
Property and equipment are reported in the consolidated financial statements at cost. Depreciation of property and equipment has been provided using the straight-line method over the estimated useful lives of such assets. Repairs and maintenance are recognized in operations during the period incurred. Land is not depreciated. The Company estimates useful life to be thirty-nine years for buildings; three to six years for leasehold improvements; three to ten years for furniture and equipment; and three to five years for computer hardware.
When the Company acquires a subsidiary or other business where it exerts significant influence, the fair value of the net tangible and intangible assets acquired is determined and compared to the amount paid for the subsidiary or business acquired. Any excess of the amount paid over the fair value of those net assets is considered to be goodwill. Goodwill is tested for impairment annually as of December 31, or more frequently if events or circumstances indicate that the carrying value may not be recoverable, to ensure that its fair value is greater than or equal to the carrying value. Any excess of carrying value over fair value is charged to the consolidated statements of operations in the period in which the impairment is determined. The Company has the option to assess goodwill for impairment by first performing a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If facts and circumstances indicate that it is more likely than not that the goodwill is impaired, a fair value-based impairment test would be required. The goodwill impairment test is a two-step process that requires management to make judgments in determining what assumptions to use in the calculation. In the first step, the fair value of the reporting unit is compared to its book value including goodwill. If the fair value of the reporting unit is in excess of its book value, the related goodwill is not impaired and no further analysis is necessary. If the fair value of the reporting unit is less than its book value, there is an indication of potential impairment and a second step is performed. When required, the second step of testing involves calculating the implied fair value of goodwill for the reporting unit. The implied fair value of goodwill is determined in the same manner as goodwill recognized in a business combination, which is the excess of the fair value of the reporting unit determined in step one over the fair value of its net assets and identifiable intangible assets as if the reporting unit had been acquired. If the carrying value of the reporting unit's goodwill exceeds the implied fair value of that goodwill, an impairment loss is recognized in an amount equal to that excess. For reporting units with a negative book value, qualitative factors are evaluated to determine whether it is necessary to perform the second step of the goodwill impairment test. When the Company acquires a subsidiary or other business where it exerts significant influence or acquires certain assets, intangible assets may be acquired, which are recorded at their fair value at the time of the acquisition. An intangible asset with a definite useful life is amortized in the consolidated statements of operations over its estimated useful life. The Company writes down the value of an intangible asset with a definite useful life when the undiscounted cash flows are not expected to allow for full recovery of the carrying value. Intangible assets with indefinite useful lives are not subject to amortization and are tested for impairment annually as of December 31, or more frequently if events or circumstances indicate that the carrying value may not be recoverable, to ensure that fair values are greater than or equal to carrying values. Any excess of carrying value over fair value is charged to the consolidated statements of operations in the period in which the impairment is determined.
Unpaid loss and loss adjustment expenses represent the estimated liabilities for reported loss events, incurred but not yet reported loss events and the related estimated loss adjustment expenses, including investigation. Unpaid loss and loss adjustment expenses are determined using case-basis evaluations and statistical analyses, including industry loss data, and represent estimates of the ultimate cost of all claims incurred through the balance sheet date. Although considerable variability is inherent in such estimates, management believes that the liability for unpaid loss and loss adjustment expenses is adequate. The estimates are continually reviewed and adjusted as necessary, and such adjustments are included in current operations and accounted for as changes in estimates.
The Company's Linked Return of Capital ("LROC") preferred units and subordinated debt are measured and reported at fair value. The fair value of the LROC preferred units was based on quoted market prices prior to redemption in June 2015, and the fair value of the subordinated debt is calculated by a third-party using a model based on significant market observable inputs. Changes in fair value are reported in the consolidated statements of operations as (gain) loss on change in fair value of debt.
The consideration for certain of the Company's acquisitions includes future payments to the former owners that are contingent upon the achievement of certain targets over future reporting periods. Liabilities for contingent consideration are measured and reported at fair value at the date of acquisition and are included in accrued expenses and other liabilities in the consolidated balance sheets. Changes in the fair value of contingent consideration liabilities can result from changes to one or multiple inputs, including adjustments to the discount rates or changes in the assumed achievement or timing of any targets. These fair value measurements are based on significant inputs not observable in the market. Changes in assumptions could have an impact on the payout of contingent consideration liabilities. Changes in fair value are reported in the consolidated statements of operations as contingent consideration benefit.
The Company and its non-U.S. subsidiaries file separate foreign income tax returns. Kingsway America II Inc. and its eligible U.S. subsidiaries file a U.S. consolidated federal income tax return ("KAI Tax Group"). The method of allocating federal income taxes among the companies in the KAI Tax Group is subject to written agreement, approved by each company's Board of Directors. The allocation is made primarily on a separate return basis, with current credit for any net operating losses or other items utilized in the consolidated federal income tax return. The Company's U.S. subsidiaries which are not included in the KAI Tax Group file separate federal income tax returns. The Company follows the asset and liability method of accounting for income taxes, whereby deferred income tax assets and liabilities are recognized for (i) the differences between the financial statement carrying amount of existing assets and liabilities and their respective tax bases and (ii) loss and tax credit carryforwards. Deferred income tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the date of enactment. Future tax benefits are recognized to the extent that realization of such benefits is more likely than not and a valuation allowance is established for any portion of a deferred tax asset that management believes will not be realized. Current federal income taxes are charged or credited to operations based upon amounts estimated to be payable or recoverable as a result of taxable operations for the current year. The Company accounts for uncertain tax positions in accordance with the income tax accounting guidance. The Company recognizes interest and penalties, if any, related to unrecognized tax benefits in income tax expense (benefit).
Premium revenue and unearned premiums Premium revenue is recognized on a pro rata basis over the terms of the respective policy contracts. Unearned premiums represent the portion of premiums written that are applicable to the unexpired terms of policies in force. Service charges on installment premiums are recognized as income upon receipt of related installment payments and are reflected in other income. Revenue from policy fees is deferred and recognized over the terms of the respective policy contracts, with revenue reflected in other income. The reinsurers' share of unearned premiums is recognized as amounts recoverable using principles consistent with the Company's method for determining the unearned premium liability. Service fee and commission income and deferred service fees Service fee and commission income represents vehicle service agreement fees and warranty product and maintenance support fees based on terms of various agreements with credit unions, consumers and businesses. Vehicle service agreement fees include the administrative fees from the sale of vehicle service agreements as well as the fees to administer future claims. The administrative fee component is recognized in proportion to the costs incurred in acquiring and administering the vehicle service agreements. The claims fee component is earned over the life of the vehicle service agreements based on the greater of expected claims or actual claims experience. Warranty product and maintenance support fees include the fees from the sale of warranty contracts for certain new and used heating, ventilation, air conditioning ("HVAC"), standby generator, commercial LED lighting and refrigeration equipment as well as the fees collected to administer equipment breakdown and maintenance support services. Warranty product and maintenance support fees are earned at the time the warranty product sales and equipment breakdown and maintenance support transactions are completed or services are rendered. The assumptions and methodologies used are continually reviewed and any adjustments are reflected in the consolidated statements of operations in the period in which the adjustments are made.
Cost of services sold is comprised of direct costs incurred to generate maintenance support fee revenue. Cost of services sold includes payments to third-party contractors who service equipment breakdowns and perform maintenance support.
The Company has a stock-based compensation plan for key officers of the Company. The Company uses the fair-value method of accounting for stock-based compensation awards granted to employees. Expense is recognized on a straight-line basis over the service period during which awards are expected to vest, with a corresponding increase to additional paid-in capital. The Company determines the fair value of stock options on their grant date using the Black-Scholes option pricing model. When these stock options are exercised, the amount of proceeds together with the amount recorded in additional paid-in capital is recorded in shareholders' equity.
The fair values of the Company's investments in fixed maturities and equity investments, performance shares, LROC preferred units, subordinated debt and contingent consideration are estimated using a fair value hierarchy to categorize the inputs it uses in valuation techniques. The fair value of the Company's investment in investee is based on quoted market prices. Fair values for other investments approximate their unpaid principal balance. The carrying amounts reported in the consolidated balance sheets approximate fair values for cash, short-term investments and certain other assets and other liabilities because of their short-term nature. |
Recently Issued Accounting Standards |
12 Months Ended |
---|---|
Dec. 31, 2015 | |
Recently Issued Accounting Standards [Abstract] | |
Description of New Accounting Pronouncements Not yet Adopted [Text Block] | RECENTLY ISSUED ACCOUNTING STANDARDS (a) Adoption of New Accounting Standards: In April 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2014-08, Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity ("ASU 2014-08"). ASU 2014-08 amends the requirements for reporting and disclosing discontinued operations. Under ASU 2014-08, a disposal of a component of an entity or a group of components of an entity is required to be reported in discontinued operations if the disposal represents a strategic shift that has or will have a major effect on the entity’s operations and financial results. Effective January 1, 2015, the Company adopted ASU 2014-08. The adoption of the standard did not have an impact on the consolidated financial statements. (b) Accounting Standards Not Yet Adopted: In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers ("ASU 2014-09"), which outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers. The core principle of ASU 2014-09 is that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date ("ASU 2015-14"). This amendment defers the effective date of the previously issued ASU 2014-09 until the interim and annual reporting periods beginning after December 15, 2017. Earlier application is permitted for interim and annual reporting periods beginning after December 15, 2016. Insurance contracts are not within the scope of ASU 2014-09, therefore this standard would not apply to the Company's Insurance Underwriting segment. The Company is currently evaluating the impact of the adoption of ASU 2014-09 on its consolidated financial statements. In February 2015, the FASB issued ASU 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis ("ASU 2015-02"). The amendments in ASU 2015-02 affect reporting entities that are required to evaluate whether they should consolidate certain legal entities. All legal entities are subject to reevaluation under the revised consolidation model. Specifically, the amendments modify the evaluation of whether limited partnerships and similar legal entities are variable interest entities ("VIEs") or voting interest entities while also eliminating the presumption that a general partner should consolidate a limited partnership. ASU 2015-02 is effective for fiscal years beginning after December 15, 2015 and interim periods within those years with early adoption being permissible. The Company is currently evaluating the impact of the adoption of ASU 2015-02 on its consolidated financial statements. In May 2015, the FASB issued ASU 2015-09, Financial Services-Insurance (Topic 944): Disclosures about Short-Duration Contracts ("ASU 2015-09"). ASU 2015-09 was issued to enhance disclosures about an entity’s insurance liabilities, including the nature, amount, timing and uncertainty of cash flows related to those liabilities. ASU 2015-09 is effective for annual reporting periods beginning after December 15, 2015 and for interim periods beginning after December 15, 2016. Early adoption is permitted. Except for the increased disclosure requirements, the Company does not believe the adoption will have a material effect on its consolidated financial statements. In September 2015, the FASB issued ASU 2015-16, Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments ("ASU 2015-16"). ASU 2015-16 simplifies the accounting for measurement-period adjustments in a business combination by requiring the acquirer to recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The effect on earnings as a result of the change to the provisional amounts, calculated as if the accounting had been completed as of the acquisition date, must be recorded in the reporting period in which the adjustment amounts are determined rather than retrospectively. The effects, by line item, if any, must be disclosed. The Company does not believe the adoption of ASU 2015-16 will have a material effect on its consolidated financial statements. In January 2016, the FASB issued ASU 2016-01, Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities ("ASU 2016-01"). The amendments in ASU 2016-01 address certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. Most significantly, ASU 2016-01 requires equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of an investee) to be measured at fair value with changes in fair value recognized in net income (loss). For public business entities, the amendments in ASU 2016-01 are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years, and will be applied using a cumulative-effect adjustment to accumulated deficit as of the beginning of the fiscal year of adoption. The Company currently records its equity investments at fair value with net unrealized gains or losses reported in accumulated other comprehensive income. Adoption of ASU 2016-01 will require the changes in fair value on equity investments with readily determinable fair values to be recorded in net income (loss). Adoption of ASU 2016-01 is not expected to have a material impact on the Company's financial position, cash flows, or total comprehensive income (loss), but could have a significant impact on the Company's results of operations and earnings (loss) per share as changes in fair value will be presented in net income (loss) rather than other comprehensive income (loss). In February 2016, the FASB issued ASU 2016-02, Leases ("ASU 2016-02"). ASU 2016-02 was issued to improve the financial reporting of leasing transactions. Under current guidance for lessees, leases are only included on the balance sheet if certain criteria, classifying the agreement as a capital lease, are met. This update will require the recognition of a right-of-use asset and a corresponding lease liability, discounted to the present value, for all leases that extend beyond 12 months. For operating leases, the asset and liability will be expensed over the lease term on a straight-line basis, with all cash flows included in the operating section of the statement of cash flows. For finance leases, interest on the lease liability will be recognized separately from the amortization of the right-of-use asset in the statement of comprehensive income and the repayment of the principal portion of the lease liability will be classified as a financing activity while the interest component will be included in the operating section of the statement of cash flows. ASU 2016-02 is effective for annual and interim reporting periods beginning after December 15, 2018. Early adoption is permitted. Upon adoption, leases will be recognized and measured at the beginning of the earliest period presented using a modified retrospective approach. The Company is currently evaluating the impact of the adoption of ASU 2016-02 on its consolidated financial statements. |
Disposition, Deconsolidation and Discontinued Operations |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disposition, Deconsolidation and Discontinued Operations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mergers, Acquisitions and Dispositions Disclosures [Text Block] | DISPOSITION, DECONSOLIDATION AND DISCONTINUED OPERATIONS (a) Disposition Effective March 31, 2014, the Company's wholly owned subsidiary, 1347 Property Insurance Holdings, Inc. ("PIH"), formerly known as Maison Insurance Holdings, Inc., completed an initial public offering of its common stock. Total consideration to the Company as a result of this transaction was $7.7 million, consisting of a 28.7% interest in the common shares of PIH. As a result of the disposal, the Company recognized a loss of $1.2 million during the first quarter of 2014. The earnings of PIH are included in the consolidated statements of operations through the March 31, 2014 transaction date. At March 31, 2014, the Company's investment in the common stock of PIH was reported as investment in investee in the consolidated balance sheets. During the second quarter of 2014, PIH announced the closing and settlement of an underwritten public offering of 2,875,000 shares of its common stock at a price to the public of $8.00 per share. As a result of the issuance of additional shares of common stock, the Company's approximate voting percentage in PIH was reduced to 15.7% at June 30, 2014. As a result of this change in ownership and other qualitative factors, the Company determined that its investment in the common stock of PIH no longer qualified for the equity method of accounting. During the fourth quarter of 2014, the Company purchased additional shares of PIH which increased the Company's approximate voting percentage in PIH to 16.9% at December 31, 2014. The Company's investment in PIH common stock is included in equity investments and reported at its fair value of $8.2 million in the consolidated balance sheets at December 31, 2015. (b) Deconsolidation On July 14, 2005, KLROC Trust completed its public offering of C$78.0 million through the issuance of 3,120,000 LROC 5% preferred units due June 30, 2015 (“LROC preferred units”), of which the Company was a promoter. KLROC Trust’s net proceeds of the public offering was C$74.1 million. Beginning in 2009, KFS Capital began purchasing LROC preferred units. During 2009, KFS Capital acquired 833,715 LROC preferred units. During the second quarter of 2010, KFS Capital commenced the take-over bid (the “KLROC Offer”) to acquire up to 1,500,000 units at a price per unit of C$20.00 in cash. The KLROC Offer expired on July 23, 2010, and 1,525,150 units were tendered, of which 1,500,000 were purchased on a pro-rata basis. The tender was paid for using available cash. As a result of these acquisitions, the Company beneficially owned and controlled 2,333,715 units, representing 74.8% of the issued and outstanding LROC preferred units and began consolidating the financial statements of KLROC Trust effective July 23, 2010. In the consolidated financial statements, the par value of the units owned was netted against the liability related to the LROC preferred units due June 30, 2015. At December 31, 2014, the Company's outstanding net obligation was C$15.8 million. During the second quarter of 2015, the Company's controlling interest in KLROC Trust was reduced to zero upon the Company's repayment of its C$15.8 million outstanding on its LROC preferred units due June 30, 2015. As a result, the Company recorded a non-cash loss on deconsolidation of KLROC Trust of $4.4 million for the year ended December 31, 2015. This reported loss results from removing the net assets and accumulated other comprehensive loss of KLROC Trust from the Company’s consolidated balance sheets. The deconsolidation reduced consolidated shareholders’ equity by $2.8 million at June 30, 2015. (c) Discontinued Operations On April 1, 2015, the Company closed on the sale of its subsidiary, Assigned Risk Solutions Ltd. ("ARS") for $47.0 million in cash. During the second quarter of 2015, the Company received additional post-closing cash consideration of $2.0 million. The terms of the sale also provide for potential future earnout payments to the Company equal to 1.25% of ARS' written premium and fee income during the earnout periods. The earnout payments are payable in three annual installments beginning in April 2016 through April 2018. The Company recorded a net gain on disposal of ARS, not including future earnout payments, of $11.3 million for the year ended December 31, 2015. As a result of the sale, ARS, previously disclosed as part of the Insurance Services segment, has been classified as a discontinued operation. The earnings of ARS are disclosed as discontinued operations in the consolidated statements of operations for all periods presented. Summary financial information included in income from discontinued operations, net of taxes for the three months ended March 31, 2015 and the year ended December 31, 2014 is presented below:
At December 31, 2014, the assets and liabilities of ARS are presented as held for sale in the consolidated balance sheets. The carrying amounts of the major classes of assets and liabilities of ARS at December 31, 2014 were as follows:
For the three months ended March 31, 2015, ARS' net cash used in operating activities was $0.2 million. For the year ended December 31, 2014, ARS' net cash provided by operating activities was $1.7 million. ARS had no cash flows from investing activities for the three months ended March 31, 2015 and the year ended December 31, 2014. |
Investments |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] | INVESTMENTS The amortized cost, gross unrealized gains and losses, and estimated fair value of the Company's investments in fixed maturities and equity investments at December 31, 2015 and December 31, 2014 are summarized in the tables shown below:
The table below summarizes the Company's fixed maturities at December 31, 2015 by contractual maturity periods. Actual results may differ as issuers may have the right to call or prepay obligations, with or without penalties, prior to the contractual maturity of these obligations.
The following tables highlight the aggregate unrealized loss position, by security type, of fixed maturities and equity investments in unrealized loss positions as of December 31, 2015 and December 31, 2014. The tables segregate the holdings based on the period of time the investments have been continuously held in unrealized loss positions.
Fixed maturities and equity investments contain approximately 127 and 71 individual investments that were in unrealized loss positions as of December 31, 2015 and 2014, respectively. The establishment of an other-than-temporary impairment on an investment requires a number of judgments and estimates. The Company performs a quarterly analysis of the individual investments to determine if declines in market value are other-than-temporary. The analysis includes some or all of the following procedures as deemed appropriate by the Company:
The risks and uncertainties inherent in the assessment methodology used to determine declines in market value that are other-than-temporary include, but may not be limited to, the following:
As a result of the analysis performed by the Company to determine declines in market value that are other-than-temporary, the Company recorded a write down of $0.0 million for other-than-temporary impairment related to fixed maturities for the year ended December 31, 2015. The Company did not recognize any impairment related to its investments that was considered other-than-temporary for the year ended December 31, 2014. There were $0.0 million of other-than-temporary losses recognized in other comprehensive income for the year ended December 31, 2015. There were no other-than-temporary losses recognized in other comprehensive loss for the year ended December 31, 2014. The Company has reviewed currently available information regarding investments with estimated fair values that are less than their carrying amounts and believes that these unrealized losses are not other-than-temporary and are primarily due to temporary market and sector-related factors rather than to issuer-specific factors. The Company does not intend to sell those investments, and it is not likely that it will be required to sell those investments before recovery of its amortized cost. The Company does not have any exposure to subprime mortgage-backed investments. Limited liability investments include investments in limited liability companies and limited partnerships that primarily invest in income-producing real estate or real estate related investments. The Company's interests in these investments are not deemed minor and, therefore, are accounted for under the equity method of accounting. As of December 31, 2015 and December 31, 2014, the carrying value of limited liability investments totaled $20.1 million and $7.3 million, respectively. At December 31, 2015, the Company has unfunded commitments totaling $2.0 million to fund limited liability investments. Other investments include mortgage and collateral loans and are reported at their unpaid principal balance. As of December 31, 2015 and December 31, 2014, the carrying value of other investments totaled $4.1 million and $3.6 million, respectively. Gross realized gains and losses on fixed maturities, equity investments and limited liability investments for the years ended December 31, 2015 and 2014 were as follows:
Net investment income for the years ended December 31, 2015 and 2014, respectively, is comprised as follows:
|
Investment in Investee (Notes) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity Method Investments and Joint Ventures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment in Investee [Text Block] | INVESTMENT IN INVESTEE Investment in investee includes the Company's investment in the common stock and private units of 1347 Capital Corp. and is accounted for under the equity method. 1347 Capital Corp. was formed for the purpose of entering into a merger, share exchange, asset acquisition or other similar business combination with one or more businesses or entities. The carrying value, estimated fair value and approximate equity percentage for the Company's investment in 1347 Capital Corp. at December 31, 2015 and 2014 were as follows:
Equity in net loss of investee was $0.3 million and $0.2 million for the years ended December 31, 2015 and 2014, respectively. |
Reinsurance |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reinsurance [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reinsurance [Text Block] | REINSURANCE As is customary in the insurance industry, the Company reinsures portions of certain insurance policies it writes, thereby providing a greater diversification of risk and minimizing exposure on larger risks. The Company remains contingently at risk with respect to any reinsurance ceded and would incur an additional loss if an assuming company were unable to meet its obligation under the reinsurance treaty. The Company monitors the financial condition of its reinsurers to minimize its exposure to significant losses from reinsurer insolvencies. Letters of credit are maintained for any unauthorized reinsurer to cover ceded unearned premium and ceded unpaid loss and loss adjustment expenses balances. For most of the non-standard automobile business, the liability is limited to the minimum statutory liability limits, which are typically not greater than $50,000 per occurrence, depending on the state. The Company's reinsurance includes excess of loss reinsurance to reduce its exposure to individual losses as well as losses related to catastrophic events which may simultaneously affect many of our policyholders. During 2015 and 2014, the Company entered into an excess of loss reinsurance arrangement to reduce its exposure to losses related to certain catastrophic events which may occur in any of the states in which the Company writes non-standard automobile business. Ceded premiums, loss and loss adjustments expenses, and commissions as of and for the years ended December 31, 2015 and 2014 are summarized as follows:
The maximum amount of return commission, which would have been due to reinsurers if they or the Company had canceled all of the Company's reinsurance, with the return of the unearned premium, is as follows at December 31, 2015:
The amounts of assumed premiums written were $19.0 million and $20.1 million for the years ended December 31, 2015 and 2014, respectively. The amounts of assumed premiums earned were $19.8 million and $19.9 million for the years ended December 31, 2015 and 2014, respectively. |
Deferred Acquistion Costs |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred Policy Acquisition Costs [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred Policy Acquisition Costs, Policy [Policy Text Block] | 8 DEFERRED ACQUISITION COSTS Policy acquisition costs consist primarily of commissions, premium taxes, and underwriting and agency expenses, net of ceding commission income, incurred related to successful efforts to acquire new or renewal insurance contracts and vehicle service agreements. Acquisition costs deferred on both property and casualty insurance products and vehicle service agreements are amortized over the period in which the related revenues are earned. The components of deferred acquisition costs and the related amortization expense as of and for the years ended December 31, 2015 and 2014, respectively, are comprised as follows:
|
Goodwill |
12 Months Ended |
---|---|
Dec. 31, 2015 | |
Goodwill [Abstract] | |
Goodwill and Intangible Assets Disclosure [Text Block] | GOODWILL Goodwill was $10.1 million at each of December 31, 2015 and 2014, respectively. The Company's goodwill at December 31, 2015 and 2014 is attributable to the Insurance Services reportable segment. Goodwill is assessed for impairment annually as of December 31, or more frequently if events or circumstances indicate that the carrying value may not be recoverable. The Company tested goodwill for recoverability at December 31, 2015 and 2014. Based on the assessment performed, no goodwill impairments were recognized in 2015 or 2014. |
Intangible Assets |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intangible Assets [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intangible Assets Disclosure [Text Block] | INTANGIBLE ASSETS Intangible assets are comprised as follows:
The Company's intangible assets with definite useful lives are amortized either based on the pattern in which the economic benefits of the intangible asset are expected to be consumed or using the straight-line method over their estimated useful lives, which range from three to fifteen years. Amortization of intangible assets was $1.2 million and $1.6 million for the years ended December 31, 2015 and 2014, respectively. The estimated aggregate future amortization expense of all intangible assets is $1.2 million for 2016, $1.0 million for 2017, $1.0 million for 2018, $0.8 million for 2019 and $0.7 million for 2020. The insurance licenses and trade name intangible assets have indefinite useful lives and are not amortized. All intangible assets with indefinite useful lives are reviewed annually by the Company for impairment. No impairment charges were taken on intangible assets in 2015 or 2014. |
Property and Equipment |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment Disclosure [Text Block] | PROPERTY AND EQUIPMENT Property and equipment are comprised as follows:
For the year ended December 31, 2015, depreciation expense on property and equipment of $0.4 million and $0.2 million is included in general and administrative expenses and loss and loss adjustment expenses, respectively, in the consolidated statements of operations. For the year ended December 31, 2014, depreciation expense on property and equipment of $0.8 million and $0.0 million is included in general and administrative expenses and loss and loss adjustment expenses, respectively, in the consolidated statements of operations. Prior to the fourth quarter of 2014, property consisting of building and land located in Miami, Florida with a carrying value of $5.2 million was classified as held for sale. As a result of declines in the fair value of the property, the Company recorded an impairment write-down of $1.2 million related to the asset held for sale during the year ended December 31, 2014. On October 2, 2014, the Company completed a sale and leaseback transaction involving the building and land located in Miami, Florida. Net proceeds were $4.3 million after deducting direct costs of the transaction. The Company recognized a loss of $0.1 million equal to the difference between the fair market value and the carrying value of the property at the date of the transaction. This transaction is accounted for as a financing because it does not qualify for sales recognition under the sale-leaseback accounting guidance due to the Company's continuing involvement with the property. As a result, at the date of the transaction, land and building with a carrying value of $5.2 million was reclassified from asset held for sale to property and equipment in the consolidated balance sheets, and the building is being depreciated over its estimated useful life. At December 31, 2015 and 2014, the carrying value of the land and building was $4.9 million and $5.0 million, respectively. See Note 14, "Finance Lease Obligation Liability," for further discussion. |
Unpaid Loss and Loss Adjustment Expenses |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unpaid loss and loss adjustments [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Liability for Future Policy Benefits and Unpaid Claims Disclosure [Text Block] | UNPAID LOSS AND LOSS ADJUSTMENT EXPENSES The establishment of the provision for unpaid loss and loss adjustment expenses is based on known facts and interpretation of circumstances and is therefore a complex and dynamic process influenced by a large variety of factors. These factors include the Company's experience with similar cases and historical trends involving loss payment patterns, pending levels of unpaid loss and loss adjustment expenses, product mix or concentration, loss severity and loss frequency patterns. Other factors include the continually evolving and changing regulatory and legal environment; actuarial studies; professional experience and expertise of the Company's claims departments' personnel and independent adjusters retained to handle individual claims; the quality of the data used for projection purposes; existing claims management practices including claims-handling and settlement practices; the effect of inflationary trends on future loss settlement costs; court decisions; economic conditions; and public attitudes. Consequently, the process of determining the provision necessarily involves risks that the actual results will deviate, perhaps materially, from the best estimates made. The Company's evaluation of the adequacy of unpaid loss and loss adjustment expenses includes a re-estimation of the liability for unpaid loss and loss adjustment expenses relating to each preceding financial year compared to the liability that was previously established. (a) Property and Casualty The results of this comparison and the changes in the provision for property and casualty unpaid loss and loss adjustment expenses, net of amounts recoverable from reinsurers, as of December 31, 2015 and December 31, 2014 were as follows:
The Company reported unfavorable development on property and casualty unpaid loss and loss adjustment expenses of $0.6 million in 2015 compared to favorable development of $5.1 million in 2014. The unfavorable development in 2015 was primarily related to the increase in property and casualty unpaid loss and loss adjustment expenses at Mendota, offset by a decrease in property and casualty unpaid loss and loss adjustment expenses due to the continuing voluntary run-offs of Amigo and MCC. The favorable development in 2014 was primarily related to the decrease in property and casualty unpaid loss and loss adjustment expenses at Amigo and MCC. Original estimates are increased or decreased as additional information becomes known regarding individual claims. (b) Vehicle Service Agreements The results of the comparison and the changes in the provision for vehicle service agreement unpaid loss and loss adjustment expenses as of December 31, 2015 and December 31, 2014 were as follows:
|
Debt |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Text Block] | DEBT Debt consists of the following instruments:
Subordinated debt mentioned above consists of the following trust preferred debt instruments:
(a) Senior unsecured debentures: On January 29, 2004, KAI completed the sale of $100.0 million 7.50% senior notes due 2014. The notes were fully and unconditionally guaranteed by the Company. In March 2004, an additional $25.0 million of these senior notes were issued. The notes were redeemable at KAI's option in whole at any time or in part from time to time on or after February 1, 2009, subject to the conditions stated in the trust indenture. Interest paid during the year ended December 31, 2014 was $0.5 million. KAI subsequently repurchased and retired most of the originally issued par value. In February 2014, KAI repaid the $14.4 million remaining amount outstanding on its senior unsecured debentures due February 1, 2014. (b) LROC preferred units: On July 14, 2005, KLROC Trust completed its public offering of C$78.0 million of LROC preferred units due June 30, 2015, of which the Company was a promoter. KLROC Trust's net proceeds of the public offering was C$74.1 million. During 2009, KFS Capital acquired 833,715 LROC preferred units. On June 9, 2010, KFS Capital commenced the KLROC Offer to acquire up to 750,000 LROC preferred units at a price per unit of C$17.50 in cash. On July 9, 2010, KFS Capital increased the size and price of its previously announced KLROC Offer to 1,500,000 units at a price per unit of C$20.00 in cash. The KLROC Offer expired on July 23, 2010, and 1,525,150 units were tendered, of which 1,500,000 were purchased on a pro-rata basis. The tender was paid for using available cash. As a result of these acquisitions, the Company beneficially owned and controlled 2,333,715 units, representing 74.8% of the issued and outstanding LROC preferred units. At December 31, 2014, the Company's outstanding obligation was C$15.8 million. During the second quarter of 2015, the Company repaid its C$15.8 million outstanding on its LROC preferred units due June 30, 2015. (c) Subordinated debt: Between December 4, 2002 and December 16, 2003, six subsidiary trusts of the Company issued $90.5 million of 30-year capital securities to third-parties in separate private transactions. In each instance, a corresponding floating rate junior subordinated deferrable interest debenture was then issued by KAI to the trust in exchange for the proceeds from the private sale. The floating rate debentures bear interest at the rate of the London interbank offered interest rate for three-month U.S. dollar deposits ("LIBOR"), plus spreads ranging from 3.85% to 4.20%. At December 31, 2015, the interest rates ranged from 4.27% to 4.61%. The Company has the right to call each of these securities at par value anytime after five years from their issuance until their maturity. During the first quarter of 2011, the Company gave notice to its Trust Preferred trustees of its intention to exercise its voluntary right to defer interest payments for up to 20 quarters, pursuant to the contractual terms of its outstanding Trust Preferred indentures, which permit interest deferral. This action does not constitute a default under the Company's Trust Preferred indentures or any of its other debt indentures. On November 6, 2015, the Company paid $22.1 million to its Trust Preferred trustees to be used by the trustees to pay the interest which the Company had been deferring since the first quarter of 2011. At December 31, 2015 and 2014, deferred interest payable of zero and $17.4 million, respectively, is included in accrued expenses and other liabilities in the consolidated balance sheets. |
Finance Lease Obligation Liability (Notes) |
12 Months Ended |
---|---|
Dec. 31, 2015 | |
Finance Lease Obligation Liability [Abstract] | |
Sale Leaseback Transaction Disclosure [Text Block] | FINANCE LEASE OBLIGATION LIABILITY As described in Note 11, "Property and Equipment," on October 2, 2014, the Company completed a sale and leaseback transaction involving building and land located in Miami, Florida. The transaction does not qualify for sales recognition and is accounted for as a financing due to the Company's continuing involvement with the property as a result of nonrecourse financing provided to the buyer in the form of prepaid rent. A finance lease obligation liability equal to the selling price of the property was established at the date of the transaction. During the five-year lease term, the Company will record interest expense on the finance lease obligation at its incremental borrowing rate and will increase the finance lease obligation liability by the same amount. At the end of the lease term, the Company will no longer have continuing involvement with the property and will then recognize the sale of the property as well as the gain of approximately $1.1 million that will result from removing the net book value of the land and building and finance lease obligation liability from the consolidated balance sheets. At December 31, 2015 and 2014, finance lease obligation liability of $4.9 million and $4.7 million, respectively, is included in accrued expenses and other liabilities in the consolidated balance sheets. |
Income Taxes |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Taxes [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Text Block] | INCOME TAXES Income tax expense (benefit) consists of the following:
Income tax expense (benefit) varies from the amount that would result by applying the applicable United States corporate income tax rate of 34% to loss from continuing operations before income tax expense (benefit). The following table summarizes the differences:
The tax effects of temporary differences that give rise to significant portions of the deferred income tax assets and liabilities are presented as follows:
The Company maintains a valuation allowance for its gross deferred income tax assets of $283.6 million (U.S. operations - $277.1 million; Other - $6.5 million) and $287.2 million (U.S. operations - $280.1 million; Other - $7.1 million) at December 31, 2015 and December 31, 2014, respectively. The Company's businesses have generated substantial operating losses during the last several years. These losses can be available to reduce income taxes that might otherwise be incurred on future taxable income. The Company's operations, however, remain challenged, and, as a result, it is uncertain whether the Company will generate the taxable income necessary to utilize these losses or other reversing temporary differences. This uncertainty has caused management to place a full valuation allowance on its December 31, 2015 and December 31, 2014 net deferred income tax assets. The Company carries a deferred income tax liability of $2.9 million and $2.8 million at December 31, 2015 and December 31, 2014, respectively, all of which relates to indefinite life intangible assets. Amounts, originating dates and expiration dates of the U.S. net operating loss carryforwards are as follows:
The U.S. net operating loss carryforward amounts disclosed above contain consolidated and separate company net operating loss carryforwards, the most significant of which is the KAI Tax Group net operating loss carryforward of approximately $843.4 million. In addition, there are net operating loss carryforwards relating to the operations in Barbados in the amount of $85.3 million, which losses will expire by 2024, and net operating loss carry forwards relating to operations in Canada in the amount of $18.2 million, which losses will expire by 2035. A reconciliation of the beginning and ending unrecognized tax benefits is as follows:
As of December 31, 2015, the Company had no unrecognized tax benefits. The Company analyzed its tax positions in accordance with the provisions of ASC Topic 740, Income Taxes, and has determined that there are currently no uncertain tax positions. The Company classifies interest and penalty accruals, if any, related to unrecognized tax benefits as income tax expense (benefit). During the years ended December 31, 2015 and 2014, the Company recognized a benefit of zero and $1.3 million, respectively, in interest and penalties. At December 31, 2015 and December 31, 2014, the Company had no accrual for the payment of interest and penalties. The federal income tax returns of the Company's U.S. operations for the years through 2011 are closed for Internal Revenue Service ("IRS") examination. The Company's federal income tax returns are not currently under examination by the IRS for any open tax years. The federal income tax returns of the Company's Canadian operations for the years through 2010 are closed for Canada Revenue Agency ("CRA") examination. The Company's Canadian operations federal income tax returns are not currently under examination by the CRA for any open tax years. |
Loss From Continuing Operations Per Share |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Loss per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Text Block] | LOSS FROM CONTINUING OPERATIONS PER SHARE The following table sets forth the reconciliation of numerators and denominators for the basic and diluted loss from continuing operations per share computation for the years ended December 31, 2015 and 2014:
Loss from continuing operations per share is based on the weighted-average number of shares outstanding. Diluted weighted-average shares is calculated by adjusting basic weighted-average shares outstanding by all potentially dilutive securities. Potentially dilutive securities consist of stock options, unvested restricted stock awards, warrants and convertible preferred stock. Since the Company is reporting a loss from continuing operations for the years ended December 31, 2015 and 2014, all potentially dilutive securities outstanding were excluded from the calculation of both basic and diluted loss from continuing operations per share since their inclusion would have been anti-dilutive. |
Stock-Based Compensation |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-Based Compensation [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | STOCK-BASED COMPENSATION (a) Stock Options On May 13, 2013, the Company's shareholders approved the 2013 Equity Incentive Plan ("2013 Plan"). The 2013 Plan replaced the Company's previous Amended and Restated Stock Option Plan ("Prior Plan"), with respect to the granting of future equity awards. Under the 2013 Plan, the Company may grant new stock options ("New Stock Options") to purchase up to an additional 300,000 common shares to key employees selected by the Company. No New Stock Options were granted during the year ended December 31, 2015. On May 13, 2013, the Company's shareholders also approved the Option Exchange Program whereby the outstanding stock options under the Prior Plan held by current employees will be canceled and replaced with stock options granted under the 2013 Plan ("Replacement Options"). The maximum number of common shares available to be granted as Replacement Options is 355,625. No Replacement Options were granted during the year ended December 31, 2015. The exercise price of Replacement Options and New Stock Options (collectively, the "Stock Options") is equal to $4.50. The Stock Options are fully vested and exercisable at the date of grant and are exercisable for a period of four years. The following table summarizes the stock option activity during the year ended December 31, 2015:
The aggregate intrinsic value of stock options outstanding and exercisable is the difference between the December 31, 2015 market price for the Company's common shares and the exercise price of the options, multiplied by the number of options where the fair value exceeds the exercise price. At December 31, 2015 and 2014, the number of options exercisable was 611,875 and 611,875, respectively, with weighted average prices of $4.50 and $4.50, respectively. The Company uses the Black-Scholes option pricing model to estimate the fair value of each option on the date of grant. No options were granted during the year ended December 31, 2015. The assumptions used in the Black-Scholes pricing model for options granted or exchanged during the year ended December 31, 2014 were as follows:
(b) Restricted Stock Awards Under the 2013 Plan, the Company made grants of restricted common stock ("Restricted Stock") to certain officers of the Company. The aggregate number of common shares available for Restricted Stock awards was 1,972,345. The Restricted Stock vests after a ten-year period and is subject to the officer's continued employment through the vesting date. The Restricted Stock is amortized on a straight-line basis over the ten-year requisite service period. Total unamortized compensation expense related to unvested awards at December 31, 2015 was $6.7 million. The grant-date fair value of Restricted Stock was determined using the closing price of Kingsway common stock on the date of grant. The following table summarizes the activity related to unvested Restricted Stock during the year ended December 31, 2015:
Total stock-based compensation expense, net of forfeitures, was $0.8 million and $1.2 million for the years ended December 31, 2015 and 2014, respectively. (c) Employee Share Purchase Plan The Company has an employee share purchase plan ("ESPP Plan") whereby qualifying employees could choose each year to have up to 5% of their annual base earnings withheld to purchase the Company's common shares. In 2014, the ESPP Plan was amended and restated to allow qualifying employees to be eligible for matching Company contributions. The Company matches 100% of the employee contribution amount, and the contributions vest immediately. All contributions are used by the plan administrator to purchase common shares in the open market. The Company's contribution is expensed as paid and for the years ended December 31, 2015 and 2014 totaled $0.2 million and $0.1 million, respectively. |
Employee Benefit Plan |
12 Months Ended |
---|---|
Dec. 31, 2015 | |
Employee benefit plan [Abstract] | |
Compensation and Employee Benefit Plans [Text Block] | EMPLOYEE BENEFIT PLAN The Company maintains a defined contribution plan in the United States for all of its qualified employees. Qualifying employees can choose to voluntarily contribute up to 60% of their annual earnings subject to an overall limitation of $18,000 and $17,500 in 2015 and 2014, respectively. The Company matches an amount equal to 50% of each participant's contribution, limited to contributions up to 5% of a participant's earnings. The contributions for the plan vest based on years of service with 100% vesting after five years of service. The Company's contribution is expensed as paid and for the years ended December 31, 2015 and 2014 totaled $0.3 million and $0.3 million, respectively. All Company obligations to the plans were fully funded as of December 31, 2015. |
Class A Preferred Stock |
12 Months Ended |
---|---|
Dec. 31, 2015 | |
Class A Preferred Stock [Abstract] | |
Preferred Stock [Text Block] | 19 CLASS A PREFERRED STOCK On May 13, 2013, the Company's shareholders approved an amendment to the Company's Articles of Incorporation to create an unlimited number of zero par value class A preferred shares. The Company's Board of Directors will have the ability to fix the designation, rights, privileges, restrictions and conditions attaching to the shares of each series of preferred shares. The preferred shares will have priority over the common shares. There were 262,876 shares of Class A preferred stock outstanding at December 31, 2015 and 2014, respectively. On February 3, 2014, the Company closed on its previously announced private placement totaling $6.6 million. At closing, the Company received gross proceeds of $6.6 million, resulting from the sale and issuance of 262,876 units for a purchase price of $25.00 per unit. Net proceeds to the Company were $6.3 million after deducting expenses. Each unit consists of one class A convertible preferred share, series 1 (the "Preferred Shares"), and 6.25 common share class C purchase warrants. Each Preferred Share is convertible into 6.25 common shares at a conversion price of $4.00 per common share any time at the option of the holder prior to April 1, 2021. The maximum number of common shares issuable upon conversion of the Preferred Shares is 1,642,975 common shares. Each warrant will entitle the subscriber to purchase one common share of Kingsway at a price of $5.00 per common share at any time after September 16, 2016 and prior to expiry on September 15, 2023. The Preferred Shares are not entitled to vote. The holders of the Preferred Shares are entitled to receive fixed, cumulative, preferential cash dividends at a rate of $1.25 per Preferred Share per year. The cash dividend rate shall be revised to $1.875 per Preferred Share per year if the dividend accumulates for a period greater than 30 consecutive months from the date of the most recent dividend payment. On and after February 3, 2016, the Company may redeem all or any part of the then outstanding Preferred Shares for the price of $28.75 per Preferred Share, plus accrued but unpaid dividends thereon, whether or not declared, up to and including the date specified for redemption. The Company will redeem any Preferred Shares not previously converted into common shares, and which remain outstanding on April 1, 2021, for the price of $25.00 per Preferred Share, plus accrued but unpaid dividends, whether or not declared, up to and including the date specified for redemption. At December 31, 2015 and 2014, accrued dividends of $0.6 million and $0.3 million were included in accrued expenses and other liabilities in the consolidated balance sheets. In accordance with FASB ASC Topic 480-10-S99-3A, SEC Staff Announcement: Classification and Measurement of Redeemable Securities, redemption features which are not solely within the control of the issuer are required to be presented outside of permanent equity on the consolidated balance sheets. As described above, the holder has the option to convert the Preferred Shares at any time; however, if not converted, they are required to be redeemed on April 1, 2021. As such, the Preferred Shares are presented in temporary or mezzanine equity on the consolidated balance sheets and will be accreted up to the stated redemption value of $6.6 million through the April 1, 2021 redemption date. On July 8, 2014, the holders of the Company's series B warrants approved certain amendments to the terms of the Series B Warrant Agreement dated September 16, 2013. The Series B Warrant Agreement Amendments permitted the Company to issue up to 1,642,975 additional Series B Warrants and complete the Series C Warrant Exchange. Under the Series C Warrant Exchange, each class C purchase warrant was automatically exchanged for one Series B Warrant. |
Shareholders' Equity |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shareholders' Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' Equity Note Disclosure [Text Block] | SHAREHOLDERS' EQUITY The Company is authorized to issue an unlimited number of zero par value common stock. There were 19,709,706 shares of common stock outstanding at December 31, 2015 and 2014, respectively. There were no dividends declared during the years ended December 31, 2015 and 2014. On August 18, 2014, the Company announced its intention to redeem its outstanding series A warrants, which were issued pursuant to the Company's September 2013 rights offering. Holders of series A warrants could exercise their outstanding series A warrants at $4.50 per common share. Any series A warrants that remained unexercised after September 19, 2014 were automatically redeemed by the Company at the redemption price of $0.25 per series A warrant. During the year ended December 31, 2014, series A warrants to purchase 3,279,945 shares of common stock were exercised, resulting in cash proceeds of $14.8 million. The 845 series A warrants that remained unexercised were redeemed by the Company at the redemption price of $0.25. The following table summarizes information about warrants outstanding at December 31, 2015:
|
Accumulated Other Comprehensive Income |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive Income (Loss) Note [Text Block] | ACCUMULATED OTHER COMPREHENSIVE INCOME The table below details the change in the balance of each component of accumulated other comprehensive income, net of tax, for the years ended December 31, 2015 and 2014 as relates to shareholders' equity attributable to common shareholders on the consolidated balance sheets. On the other hand, the consolidated statements of comprehensive income (loss) present the components of other comprehensive income (loss), net of tax, only for the years ended December 31, 2015 and 2014 and inclusive of the components attributable to noncontrolling interests in consolidated subsidiaries.
Components of accumulated other comprehensive income were reclassified to the following lines of the consolidated statements of operations for the years ended December 31, 2015 and 2014:
|
Segmented Information |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting Disclosure [Text Block] | SEGMENTED INFORMATION The Company operates as a merchant bank primarily engaged, through its subsidiaries, in the property and casualty insurance business. The Company conducts its business through the following two reportable segments: Insurance Underwriting and Insurance Services. Insurance Underwriting Segment Insurance Underwriting includes the following subsidiaries of the Company: Mendota, Mendakota, MCC, Amigo and Kingsway Reinsurance Corporation (collectively, "Insurance Underwriting"). Insurance Underwriting principally offers personal automobile insurance to drivers who do not meet the criteria for coverage by standard automobile insurers. Insurance Underwriting has policyholders in 12 states; however, new business is accepted in only nine states. The Company previously placed Amigo and MCC into voluntary run-off in 2012 and 2011, respectively. Each of Amigo and MCC entered into a comprehensive run-off plan which was approved by its respective state of domicile. Kingsway continues to manage Amigo and MCC in a manner consistent with the run-off plans. During the first quarter of 2015, MCC sent a letter of intent to the Illinois Department of Insurance to resume writing private passenger automobile policies in the state of Illinois. MCC began writing these policies on April 1, 2015. Effective March 31, 2014, the Company's wholly owned subsidiary, PIH, completed an initial public offering of its common stock. Upon completion of the transaction, the Company maintained a minority ownership interest in the common shares of PIH. The earnings of PIH are included in the consolidated statements of operations through the March 31, 2014 transaction date. Prior to the transaction, PIH was included in the Insurance Underwriting segment. As a result of the disposal of the Company's majority interest in PIH on March 31, 2014, all segmented information has been adjusted to exclude PIH from the Insurance Underwriting segment. Insurance Services Segment Insurance Services includes the following subsidiaries of the Company: IWS and Trinity (collectively, "Insurance Services"). IWS is a licensed motor vehicle service agreement company and is a provider of after-market vehicle protection services distributed by credit unions in 26 states to their members. Trinity is a provider of warranty products and maintenance support to consumers and businesses in the HVAC, standby generator, commercial LED lighting and refrigeration industries. Trinity distributes its warranty products through original equipment manufacturers, HVAC distributors and commercial and residential contractors. Trinity distributes its maintenance support directly through corporate owners of retail spaces throughout the United States. Effective April 1, 2015, the Company closed on the sale of its wholly owned subsidiary, ARS. As a result, ARS has been classified as discontinued operations and the results of their operations are reported separately for all periods presented. Prior to the transaction, ARS was included in the Insurance Services segment. As a result of classifying ARS as a discontinued operation, all segmented information has been restated to exclude ARS from the Insurance Services segment. Results for the Company's reportable segments are based on the Company's internal financial reporting systems and are consistent with those followed in the preparation of the consolidated financial statements. The following tables provide financial data used by management. Segment assets are not allocated for management use and, therefore, are not included in the segment disclosures below. Revenues by reportable segment reconciled to consolidated revenues for the years ended December 31, 2015 and 2014 were:
The operating (loss) income of each segment in the following table is before income taxes and includes revenues and direct segment costs. Segment operating (loss) income reconciled to the consolidated loss from continuing operations for the years ended December 31, 2015 and 2014 were:
Net premiums earned by line of business for the years ended December 31, 2015 and 2014 were:
|
Fair Value of Financial Instruments |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value of Financial Instruments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Text Block] | FAIR VALUE OF FINANCIAL INSTRUMENTS Fair value amounts represent estimates of the consideration that would currently be agreed upon between knowledgeable, willing parties who are under no compulsion to act. Fair value is best evidenced by quoted bid or ask price, as appropriate, in an active market. Where bid or ask prices are not available, such as in an illiquid or inactive market, the closing price of the most recent transaction of that instrument subject to appropriate adjustments as required is used. Where quoted market prices are not available, the quoted prices of similar financial instruments or valuation models with observable market-based inputs are used to estimate the fair value. These valuation models may use multiple observable market inputs, including observable interest rates, foreign exchange rates, index levels, credit spreads, equity prices, counterparty credit quality, corresponding market volatility levels and option volatilities. Minimal management judgment is required for fair values calculated using quoted market prices or observable market inputs for models. Greater subjectivity is required when making valuation adjustments for financial instruments in inactive markets or when using models where observable parameters do not exist. Also, the calculation of estimated fair value is based on market conditions at a specific point in time and may not be reflective of future fair values. For the Company's financial instruments carried at cost or amortized cost, the book value is not adjusted to reflect increases or decreases in fair value due to market fluctuations, including those due to interest rate changes, as it is the Company's intention to hold them until there is a recovery of fair value, which may be to maturity. The Company classifies its investments in fixed maturities and equity investments as available-for-sale and reports these investments at fair value. The Company's performance shares, LROC preferred units, subordinated debt and contingent consideration liabilities are measured and reported at fair value. Fixed maturities and equity investments - Fair values of fixed maturities for which no active market exists are derived from quoted market prices of similar instruments or other third-party evidence. Fair values of equity investments, including warrants, reflect quoted market values based on latest bid prices, where active markets exist, or models based on significant market observable inputs, where no active markets exist. Performance shares - The performance shares, for which no active market exists, are required to be valued at fair value as determined in good faith by the Company. Such determination of fair value would require the Company to develop a model based upon relevant observable market inputs as well as significant unobservable inputs, including developing a sufficiently reliable estimate for an appropriate discount to reflect the illiquidity and unique structure of the security. The Company determined that its model for the performance shares was not sufficiently reliable. As a result, the Company has assigned a fair value of zero to the performance shares. Refer to Note 24, "Related Party Transactions," for further details regarding the performance shares. Debt - The fair value of the LROC preferred units was based on quoted market prices prior to redemption in June 2015, and the fair value of the subordinated debt is calculated by a third-party using a model based on significant market observable inputs. Contingent consideration - The consideration for certain of the Company's acquisitions includes future payments to the former owners that are contingent upon the achievement of certain targets over future reporting periods. Liabilities for contingent consideration are measured and reported at fair value and are included in accrued expenses and other liabilities in the consolidated balance sheets. The fair value of contingent consideration liabilities is estimated using internal models without relevant observable market inputs. Estimated payments are discounted using present value techniques to arrive at estimated fair value. Contingent consideration liabilities are revalued each reporting period. Changes in the fair value of contingent consideration liabilities can result from changes to one or multiple inputs, including adjustments to the discount rates or changes in the assumed achievement or timing of any targets. Changes in assumptions could have an impact on the payout of contingent consideration liabilities. Changes in fair value are reported in the consolidated statements of operations as contingent consideration benefit. As a result of the analysis performed in 2015 and 2014, the Company decreased contingent consideration liabilities by $1.5 million and $3.0 million, respectively, during the fourth quarters of 2015 and 2014, resulting in a total liability of $2.0 million and $3.1 million, respectively, at December 31, 2015 and 2014, which is included in accrued expenses and other liabilities on the consolidated balance sheets. The maximum the Company can pay in future contingent payments is $13.5 million, on an undiscounted basis. The Company employs a fair value hierarchy to categorize the inputs it uses in valuation techniques to measure the fair value. The extent of use of quoted market prices (Level 1), valuation models using observable market information (Level 2) and internal models without observable market information (Level 3) in the valuation of the Company's financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2015 and December 31, 2014 was as follows:
The following table provides a reconciliation of the fair value of recurring Level 3 fair value measurements for the years ended December 31, 2015 and 2014:
|
Related Party Transactions (Notes) |
12 Months Ended |
---|---|
Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | RELATED PARTY TRANSACTIONS Related party transactions, including services provided to or received by the Company's subsidiaries, are carried out in the normal course of operations and are measured in part by the amount of consideration paid or received as established and agreed by the parties. Management believes that consideration paid for such services in each case approximates fair value. Except where disclosed elsewhere in these consolidated financial statements, the following is a summary of related party transactions. On February 11, 2014, the Company's subsidiary, 1347 Advisors entered into a Management Services Agreement ("MSA") with PIH which provides for certain services, including forecasting, analysis of capital structure and reinsurance programs, consultation in future restructuring or capital raising transactions, and consultation in corporate development initiatives, that 1347 Advisors will provide to PIH unless and until 1347 Advisors and PIH agree to terminate the services. On February 24, 2015, the Company announced that it had entered into a definitive agreement with PIH to terminate the MSA. Pursuant to the transaction, 1347 Advisors received the following consideration: $2.0 million in cash; $3.0 million of 8% preferred stock of PIH, mandatorily redeemable in five years; a Performance Shares Grant Agreement with PIH, whereby 1347 Advisors will be entitled to receive 100,000 shares of PIH common stock if at any time the last sales price of PIH's common stock equals or exceeds $10.00 per share for any 20 trading days within any 30-trading day period; and warrants to purchase 1,500,000 shares of common stock of PIH with a strike price of $15.00, expiring in seven years. The Company recorded a gain of $6.0 million during 2015 related to the termination of the MSA, which is included in other income in the consolidated statements of operations. To the extent shares of PIH common stock are granted to the Company under the Performance Shares Grant Agreement, they will be recorded at the time the shares are granted and will have a valuation equal to the last sales price of PIH common stock on the day prior to such grant. No shares were received by the Company under the Performance Shares Grant Agreement as of December 31, 2015. Refer to Note 23, "Fair Value of Financial Instruments," for further details regarding the performance shares. On March 26, 2014, the Company entered into a Performance Share Grant Agreement with PIH, whereby the Company will be entitled to receive up to an aggregate of 375,000 shares of PIH common stock upon achievement of certain milestones for PIH’s stock price. Pursuant to the terms of the Performance Share Grant Agreement, if at any time the last sales price of PIH’s common stock equals or exceeds: (i) $12.00 per share (as adjusted for stock splits, stock dividends, reorganizations, recapitalizations and the like) for any 20 trading days within any 30-trading day period, the Company will receive 125,000 shares of PIH common stock; (ii) $15.00 per share (as adjusted for stock splits, stock dividends, reorganizations, recapitalizations and the like) for any 20 trading days within any 30-trading day period, the Company will receive 125,000 shares of PIH common stock (in addition to the 125,000 shares of common stock earned pursuant to clause (i) herein); and (iii) $18.00 per share (as adjusted for stock splits, stock dividends, reorganizations, recapitalizations and the like) for any 20 trading days within any 30-trading day period, the Company will receive 125,000 shares of PIH common stock (in addition to the 250,000 shares of common stock earned pursuant to clauses (i) and (ii) herein). To the extent shares of PIH common stock are granted to the Company under the Performance Share Grant Agreement, they will be recorded at the time the shares are granted and will have a valuation equal to the last sales price of PIH common stock on the day prior to such grant. No shares were received by the Company under the Performance Share Grant Agreement as of December 31, 2015. Refer to Note 23, "Fair Value of Financial Instruments," for further details regarding the performance shares. During the second quarter of 2014, the Company made an investment in Itasca Golf Investors, LLC ("Itasca Golf") which is included in limited liability investments on the consolidated balance sheets. On August 28, 2014, the Company entered into a $0.5 million line of credit with Itasca Golf. On August 29, 2014, the Company advanced $0.5 million to Itasca Golf under the line of credit which is included in other receivables on the consolidated balance sheets. On June 11, 2015, the line of credit was increased by $0.2 million. On June 11, 2015, the Company advanced $0.2 million to Itasca Golf under the line of credit which is included in other receivables on the consolidated balance sheets. The line of credit bears interest at 3% and matures on August 28, 2016. |
Commitments and Contigent Liabilities |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | ||||||||||||||||||||||||||||||||||||||||||||||
Commitments and contingent liabilities [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Text Block] | COMMITMENTS AND CONTINGENT LIABILITIES (a) Legal proceedings: In connection with its operations in the ordinary course of business, the Company and its subsidiaries are named as defendants in various actions for damages and costs allegedly sustained by the plaintiffs. While it is not possible to estimate the loss, or range of loss, if any, that may be incurred in connection with any of the various proceedings at this time, it is possible that individual actions may result in losses having material adverse effects on the Company's financial condition or results of operations. (b) Guarantee: The Company provided an indemnity and hold harmless agreement to a third-party for customs bonds reinsured by Lincoln General Insurance Company ("Lincoln General") during the time Lincoln General was a subsidiary of the Company. This agreement may require the Company to compensate the third-party if Lincoln General is unable to fulfill its obligations relating to the customs bonds. The Company's potential exposure under this agreement is not determinable, and no liability has been recorded in the consolidated financial statements at December 31, 2015. (c) Commitment: The Company has entered into subscription agreements to commit up to $2.5 million of capital to allow for participation in limited liability investments which invest principally in income-producing real estate. At December 31, 2015, the unfunded commitment was $2.0 million. (d) Collateral pledged: Fixed maturities and short-term investments with an estimated fair value of $12.9 million and $12.9 million were on deposit with state and provincial regulatory authorities at December 31, 2015 and December 31, 2014, respectively. Also, from time to time, the Company pledges investments to third-parties to collateralize liabilities incurred under its policies of insurance. The amount of such pledged investments was $15.8 million and $17.5 million at December 31, 2015 and December 31, 2014, respectively. Collateral pledging transactions are conducted under terms that are common and customary to standard collateral pledging and are subject to the Company's standard risk management controls. (e) Future minimum lease payments: The Company leases certain office space under non-cancelable leases, with initial terms typically ranging from three to ten years, along with options that permit renewals for additional periods. The Company also leases certain equipment under non-cancelable operating leases, with initial terms typically ranging from four to five years. Minimum rent is expensed on a straight-line basis over the term of the lease. Future minimum annual lease payments under operating leases for office space and equipment for the next five years and thereafter are:
|
Regulatory Capital Requirements and Ratios |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Regulatory Capital Requirements and Ratios [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplementary Insurance Information, for Insurance Companies Disclosure [Text Block] | REGULATORY CAPITAL REQUIREMENTS AND RATIOS In the United States, a risk-based capital ("RBC") formula is used by the National Association of Insurance Commissioners ("NAIC") to identify property and casualty insurance companies that may not be adequately capitalized. In general, insurers reporting surplus as regards policyholders below 200% of the authorized control level, as defined by the NAIC, at December 31 are subject to varying levels of regulatory action, including discontinuation of operations. As of December 31, 2015, surplus as regards policyholders reported by each of our insurance subsidiaries exceeded the 200% threshold. During the fourth quarter of 2012, the Company began taking steps to place all of Amigo into voluntary run-off. As of December 31, 2012, Amigo’s RBC was 157%. In April 2013, Kingsway filed a comprehensive run-off plan with the OIR, which outlines plans for Amigo's run-off. Amigo remains in compliance with that plan. As of December 31, 2015, Amigo's RBC was 873%. The Company previously placed MCC into voluntary run-off in early 2011. At the time it was placed into voluntary run-off, MCC's RBC was 160%. MCC entered into a comprehensive run-off plan approved by the Illinois Department of Insurance in June 2011. MCC remains in compliance with that plan. As of December 31, 2015, MCC's RBC was 1,111%. The Company's reinsurance subsidiary, which is domiciled in Barbados, is required by the regulator in Barbados to maintain minimum capital levels. As of December 31, 2015, the capital maintained by Kingsway Reinsurance Corporation was in excess of the regulatory capital requirements in Barbados. STATUTORY INFORMATION AND POLICIES The Company's insurance subsidiaries prepare statutory basis financial statements in accordance with accounting practices prescribed or permitted by the Departments of Insurance in states in which they are domiciled. "Prescribed" statutory accounting practices include state laws, regulations and general administrative rules, as well as a variety of publications of the NAIC. "Permitted" statutory accounting practices encompass all accounting practices that are not prescribed. Such practices may differ from state to state; may differ from company to company within a state; and may change in the future. The Company's insurance subsidiaries are required to report results of operations and financial position to insurance regulatory authorities based upon statutory accounting practices. In converting from statutory to U.S. GAAP, typical adjustments include deferral of acquisition costs, the inclusion of statutory non-admitted assets in the balance sheets, the inclusion of net unrealized holding gains or losses related to fixed maturities in shareholders’ equity, and the inclusion of changes in deferred tax assets and liabilities in net income (loss). Statutory capital and surplus and statutory net income for the Company's insurance subsidiaries are:
The Company’s insurance subsidiaries are required to hold minimum levels of statutory capital and surplus to satisfy regulatory requirements. The minimum statutory capital and surplus, or company action level RBC, necessary to satisfy regulatory requirements for the Company's insurance subsidiaries collectively was $24.8 million at December 31, 2015. Company action level RBC is the level at which an insurance company is required to file a corrective action plan with its regulators and is equal to 200% of the authorized control level RBC. Dividends paid by insurance subsidiaries are restricted by regulatory requirements of the insurance departments in the subsidiaries' state of domicile. The maximum amount of dividends that can be paid to shareholders by insurance companies without prior approval of the domiciliary state insurance commissioner is generally limited to the greater of (i) 10% of a company's statutory capital and surplus at the end of the previous year or (ii) 100% of the company's net income for the previous year and is generally required to be paid out of an insurance company's unassigned funds. At December 31, 2015, the U.S. insurance subsidiaries of the Company were restricted from making any dividend payments to the holding company without regulatory approval pursuant to the domiciliary state insurance regulations. |
Statutory Information and Policies |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Statutory Information and Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplementary Insurance Information, for Insurance Companies Disclosure [Text Block] | REGULATORY CAPITAL REQUIREMENTS AND RATIOS In the United States, a risk-based capital ("RBC") formula is used by the National Association of Insurance Commissioners ("NAIC") to identify property and casualty insurance companies that may not be adequately capitalized. In general, insurers reporting surplus as regards policyholders below 200% of the authorized control level, as defined by the NAIC, at December 31 are subject to varying levels of regulatory action, including discontinuation of operations. As of December 31, 2015, surplus as regards policyholders reported by each of our insurance subsidiaries exceeded the 200% threshold. During the fourth quarter of 2012, the Company began taking steps to place all of Amigo into voluntary run-off. As of December 31, 2012, Amigo’s RBC was 157%. In April 2013, Kingsway filed a comprehensive run-off plan with the OIR, which outlines plans for Amigo's run-off. Amigo remains in compliance with that plan. As of December 31, 2015, Amigo's RBC was 873%. The Company previously placed MCC into voluntary run-off in early 2011. At the time it was placed into voluntary run-off, MCC's RBC was 160%. MCC entered into a comprehensive run-off plan approved by the Illinois Department of Insurance in June 2011. MCC remains in compliance with that plan. As of December 31, 2015, MCC's RBC was 1,111%. The Company's reinsurance subsidiary, which is domiciled in Barbados, is required by the regulator in Barbados to maintain minimum capital levels. As of December 31, 2015, the capital maintained by Kingsway Reinsurance Corporation was in excess of the regulatory capital requirements in Barbados. STATUTORY INFORMATION AND POLICIES The Company's insurance subsidiaries prepare statutory basis financial statements in accordance with accounting practices prescribed or permitted by the Departments of Insurance in states in which they are domiciled. "Prescribed" statutory accounting practices include state laws, regulations and general administrative rules, as well as a variety of publications of the NAIC. "Permitted" statutory accounting practices encompass all accounting practices that are not prescribed. Such practices may differ from state to state; may differ from company to company within a state; and may change in the future. The Company's insurance subsidiaries are required to report results of operations and financial position to insurance regulatory authorities based upon statutory accounting practices. In converting from statutory to U.S. GAAP, typical adjustments include deferral of acquisition costs, the inclusion of statutory non-admitted assets in the balance sheets, the inclusion of net unrealized holding gains or losses related to fixed maturities in shareholders’ equity, and the inclusion of changes in deferred tax assets and liabilities in net income (loss). Statutory capital and surplus and statutory net income for the Company's insurance subsidiaries are:
The Company’s insurance subsidiaries are required to hold minimum levels of statutory capital and surplus to satisfy regulatory requirements. The minimum statutory capital and surplus, or company action level RBC, necessary to satisfy regulatory requirements for the Company's insurance subsidiaries collectively was $24.8 million at December 31, 2015. Company action level RBC is the level at which an insurance company is required to file a corrective action plan with its regulators and is equal to 200% of the authorized control level RBC. Dividends paid by insurance subsidiaries are restricted by regulatory requirements of the insurance departments in the subsidiaries' state of domicile. The maximum amount of dividends that can be paid to shareholders by insurance companies without prior approval of the domiciliary state insurance commissioner is generally limited to the greater of (i) 10% of a company's statutory capital and surplus at the end of the previous year or (ii) 100% of the company's net income for the previous year and is generally required to be paid out of an insurance company's unassigned funds. At December 31, 2015, the U.S. insurance subsidiaries of the Company were restricted from making any dividend payments to the holding company without regulatory approval pursuant to the domiciliary state insurance regulations. |
Disposition, Deconsolidation and Discontinued Operations (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disposition, Deconsolidation and Discontinued Operations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets Disposed of by Method Other than Sale, in Period of Disposition [Table Text Block] |
At December 31, 2014, the assets and liabilities of ARS are presented as held for sale in the consolidated balance sheets. The carrying amounts of the major classes of assets and liabilities of ARS at December 31, 2014 were as follows:
|
Investments Amortized cost, gross unrealized gains and losses, and estimated fair value (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortized Cost, Gross Unrealized Gains and Losses, and Estimated Fair Value [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unrealized Gain (Loss) on Investments [Table Text Block] | The amortized cost, gross unrealized gains and losses, and estimated fair value of the Company's investments in fixed maturities and equity investments at December 31, 2015 and December 31, 2014 are summarized in the tables shown below:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Available-for-sale Securities [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Unrealized Loss on Investments [Table Text Block] | The following tables highlight the aggregate unrealized loss position, by security type, of fixed maturities and equity investments in unrealized loss positions as of December 31, 2015 and December 31, 2014. The tables segregate the holdings based on the period of time the investments have been continuously held in unrealized loss positions.
|
Investments Contractual maturity periods (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed Maturities [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments Classified by Contractual Maturity Date [Table Text Block] | The table below summarizes the Company's fixed maturities at December 31, 2015 by contractual maturity periods. Actual results may differ as issuers may have the right to call or prepay obligations, with or without penalties, prior to the contractual maturity of these obligations.
|
Investments Aggregate unrealized loss position |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Available-for-sale Securities [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Unrealized Loss on Investments [Table Text Block] | The following tables highlight the aggregate unrealized loss position, by security type, of fixed maturities and equity investments in unrealized loss positions as of December 31, 2015 and December 31, 2014. The tables segregate the holdings based on the period of time the investments have been continuously held in unrealized loss positions.
|
Investments Gross realized gains and losses (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Realized Gain (Loss) [Table Text Block] | Gross realized gains and losses on fixed maturities, equity investments and limited liability investments for the years ended December 31, 2015 and 2014 were as follows:
|
Investments Net investment income (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment Income [Table Text Block] | Net investment income for the years ended December 31, 2015 and 2014, respectively, is comprised as follows:
|
Investment in Investee (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity Method Investments [Table Text Block] | The carrying value, estimated fair value and approximate equity percentage for the Company's investment in 1347 Capital Corp. at December 31, 2015 and 2014 were as follows:
|
Reinsurance (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Effects of Reinsurance [Table Text Block] | Ceded premiums, loss and loss adjustments expenses, and commissions as of and for the years ended December 31, 2015 and 2014 are summarized as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reinsurance Retention Policy [Table Text Block] | The maximum amount of return commission, which would have been due to reinsurers if they or the Company had canceled all of the Company's reinsurance, with the return of the unearned premium, is as follows at December 31, 2015:
|
Deferred Acquistion Costs (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred Acquisition Costs [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred Policy Acquisition Costs [Table Text Block] | The components of deferred acquisition costs and the related amortization expense as of and for the years ended December 31, 2015 and 2014, respectively, are comprised as follows:
|
Intangible Assets (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Finite-Lived Intangible Assets [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Finite-Lived Intangible Assets [Table Text Block] | Intangible assets are comprised as follows:
|
Property and Equipment Property, Plant and Equipment (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Table Text Block] | Property and equipment are comprised as follows:
|
Unpaid Loss and Loss Adjustment Expenses (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Liability and Casualty Insurance Product Line [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Liability for Unpaid Claims and Claims Adjustment Expense [Table Text Block] | The results of this comparison and the changes in the provision for property and casualty unpaid loss and loss adjustment expenses, net of amounts recoverable from reinsurers, as of December 31, 2015 and December 31, 2014 were as follows:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Service Agreements [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Liability for Future Policy Benefit, by Product Segment [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Liability for Unpaid Claims and Claims Adjustment Expense [Table Text Block] | (b) Vehicle Service Agreements The results of the comparison and the changes in the provision for vehicle service agreement unpaid loss and loss adjustment expenses as of December 31, 2015 and December 31, 2014 were as follows:
|
Debt (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Subordinated Borrowing [Table Text Block] | Subordinated debt mentioned above consists of the following trust preferred debt instruments:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Debt [Table Text Block] | Debt consists of the following instruments:
|
Income Taxes (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Examination [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | Income tax expense (benefit) consists of the following:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | Income tax expense (benefit) varies from the amount that would result by applying the applicable United States corporate income tax rate of 34% to loss from continuing operations before income tax expense (benefit). The following table summarizes the differences:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | The tax effects of temporary differences that give rise to significant portions of the deferred income tax assets and liabilities are presented as follows:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Operating Loss Carryforwards [Table Text Block] | Amounts, originating dates and expiration dates of the U.S. net operating loss carryforwards are as follows:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Unrecognized Tax Benefits Roll Forward [Table Text Block] | A reconciliation of the beginning and ending unrecognized tax benefits is as follows:
|
Loss From Continuing Operations Per Share Net loss per change (tables) (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | The following table sets forth the reconciliation of numerators and denominators for the basic and diluted loss from continuing operations per share computation for the years ended December 31, 2015 and 2014:
|
Stock-Based Compensation Stock option activity during the year (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock option activity during the year [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | The following table summarizes the stock option activity during the year ended December 31, 2015:
The following table summarizes information about warrants outstanding at December 31, 2015:
|
Stock-Based Compensation Assumptions used in the Black-Scholes pricing model (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||
Stock option activity during the year [Abstract] | |||||||||||||||||||||||||||||
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | The Company uses the Black-Scholes option pricing model to estimate the fair value of each option on the date of grant. No options were granted during the year ended December 31, 2015. The assumptions used in the Black-Scholes pricing model for options granted or exchanged during the year ended December 31, 2014 were as follows:
|
Stock-Based Compensation Unvested Restricted Stock during the year (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock option activity during the year [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity [Table Text Block] | The following table summarizes the activity related to unvested Restricted Stock during the year ended December 31, 2015:
|
Shareholders' Equity (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | The following table summarizes the stock option activity during the year ended December 31, 2015:
The following table summarizes information about warrants outstanding at December 31, 2015:
|
Accumulated Other Comprehensive Income (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | On the other hand, the consolidated statements of comprehensive income (loss) present the components of other comprehensive income (loss), net of tax, only for the years ended December 31, 2015 and 2014 and inclusive of the components attributable to noncontrolling interests in consolidated subsidiaries.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reclassification out of Accumulated Other Comprehensive Income [Table Text Block] | Components of accumulated other comprehensive income were reclassified to the following lines of the consolidated statements of operations for the years ended December 31, 2015 and 2014:
|
Segmented Information (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue, Major Customer [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of Revenue from Segments to Consolidated [Table Text Block] | Revenues by reportable segment reconciled to consolidated revenues for the years ended December 31, 2015 and 2014 were:
|
Segmented Information Operating (loss) income by segment (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Table Text Block] | Segment operating (loss) income reconciled to the consolidated loss from continuing operations for the years ended December 31, 2015 and 2014 were:
|
Segmented Information Segmented net premiums earned by line of business (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from External Customer [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from External Customers by Products and Services [Table Text Block] | Net premiums earned by line of business for the years ended December 31, 2015 and 2014 were:
|
Fair Value of Financial Instruments (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Inputs, Assets, Quantitative Information [Table Text Block] | The Company employs a fair value hierarchy to categorize the inputs it uses in valuation techniques to measure the fair value. The extent of use of quoted market prices (Level 1), valuation models using observable market information (Level 2) and internal models without observable market information (Level 3) in the valuation of the Company's financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2015 and December 31, 2014 was as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value, Assets Measured on Recurring Basis [Table Text Block] | The following table provides a reconciliation of the fair value of recurring Level 3 fair value measurements for the years ended December 31, 2015 and 2014:
|
Commitments and Contigent Liabilities (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | ||||||||||||||||||||||||||||||||||||||||||||||
Operating Leased Assets [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Future Minimum Lease Payments for Capital Leases [Table Text Block] | Future minimum lease payments: The Company leases certain office space under non-cancelable leases, with initial terms typically ranging from three to ten years, along with options that permit renewals for additional periods. The Company also leases certain equipment under non-cancelable operating leases, with initial terms typically ranging from four to five years. Minimum rent is expensed on a straight-line basis over the term of the lease. Future minimum annual lease payments under operating leases for office space and equipment for the next five years and thereafter are:
|
Statutory Information and Policies (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Statutory capital and surplus and statutory net income for the Company's insurance subsidiaries [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Statutory Accounting Practices Disclosure [Table Text Block] | Statutory capital and surplus and statutory net income for the Company's insurance subsidiaries are:
|
Financial Statements Schedules Schedule V. Valuation and Qualifying Accounts (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule V. Valuation and Qualifying Accounts [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Valuation Allowance [Table Text Block] | V. Valuation and Qualifying Accounts
|
Investments Contractual maturity periods (Details) - USD ($) $ in Thousands |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|
Schedule of Available-for-sale Securities [Line Items] | ||
Due in one year of less, Amortized Cost | $ 9,995 | |
Due in one year or less, Estimated Fair Value | 10,078 | |
Due after one year through five years, Amortized Cost | 36,091 | |
Due after one year through five years, Estimated Fair Value | 35,999 | |
Due after five years through ten years, Amortized Cost | 1,429 | |
Due after five years through ten years, Estimated Fair Value | 1,425 | |
Due after ten years, Amortized Cost | 8,091 | |
Due after ten years, Estimated Fair Value | 8,057 | |
Total fixed maturities Amortized Cost | 55,606 | $ 56,000 |
Estimated Fair Value, Fixed Maturities | $ 55,559 | $ 56,195 |
Investments Other-than-temporary impairment (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Other-than-temporary impairment [Abstract] | ||
Other-than-temporary losses | $ 10 | $ 0 |
Investments Limited liability investments (Details) - USD ($) $ in Thousands |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|
Limited liability investments [Abstract] | ||
Limited liability investments | $ 20,141 | $ 7,294 |
Unfunded Commitments | $ 2,000 |
Investments Gross realized gains and losses (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Schedule of Available-for-sale Securities [Line Items] | ||
Gross realized gains | $ 1,198 | $ 5,474 |
Gross realized losses | 1 | 433 |
Total | $ 1,197 | $ 5,041 |
Investments Net investment income (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Schedule of Available-for-sale Securities [Line Items] | ||
Interest from fixed maturities | $ 907 | $ 1,084 |
Dividends | 702 | 203 |
Income (Loss) from Equity Method Investments, Net of Dividends or Distributions | 1,596 | 184 |
Other | 186 | 372 |
Gross investment income | 3,175 | 1,843 |
Investment expenses | 257 | 227 |
Net investment income | 2,918 | 1,616 |
Warrant [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Loss on change in fair value of warrants | $ (216) | $ 0 |
Investment in Investee Investee Table (Details) - USD ($) $ in Thousands |
Dec. 31, 2015 |
Dec. 31, 2014 |
Jun. 30, 2014 |
Mar. 31, 2014 |
---|---|---|---|---|
Schedule of Equity Method Investments [Line Items] | ||||
Equity Percentage | 16.90% | 15.70% | 28.70% | |
Investment in investee | $ 1,772 | $ 2,115 | ||
Investee [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity Percentage | 21.00% | 22.70% | ||
Investment in investee, estimated fair value | $ 12,369 | $ 13,038 |
Investment in Investee Equity in net loss of investee (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Investment in Investee [Abstract] | ||
Income (Loss) from Equity Method Investments | $ (339) | $ (190) |
Reinsurance (Details) - USD ($) |
12 Months Ended | |
---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Reinsurance [Abstract] | ||
Reinsurance Retention Policy, Amount Retained | $ 50,000 | |
Assumed Premiums Written | 19,000,000 | $ 20,100,000 |
Assumed Premiums Earned | $ 19,800,000 | $ 19,900,000 |
Reinsurance Summarized Ceded Information (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Effects of Reinsurance [Line Items] | ||
Ceded premiums written | $ 165 | $ (3,695) |
Ceded premiums earned | 166 | 1,104 |
Ceded loss and loss adjustment expenses | (571) | 655 |
Ceded unpaid loss and loss adjustment expenses | 1,207 | 3,203 |
Ceded unearned premiums | 7 | 533 |
Ceding commissions | $ 138 | $ 5 |
Reinsurance Unearned Premium Reserve (Details) $ in Thousands |
Dec. 31, 2015
USD ($)
|
---|---|
Effects of Reinsurance [Line Items] | |
Assumed Unearned Premium Reserve | $ 5,041 |
Assumed Insurance Commission Equity | 776 |
Ceded Unearned Premium Reserve | 7 |
Ceded Insurance Commission Equity | 0 |
Unearned Premium Reserve | 5,034 |
Insurance Commission Equity | $ 776 |
Deferred Acquistion Costs Components of deferred acquisition (Details) - USD ($) $ in Thousands |
12 Months Ended | |||
---|---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Mar. 31, 2014 |
Dec. 31, 2013 |
|
Deferred Acquisition Costs [Line Items] | ||||
Balance at January 1, net | $ 12,143 | $ 12,197 | $ 1,043 | $ 12,392 |
Additions | 26,307 | 26,627 | ||
Amortization | 26,361 | 25,779 | ||
Balance at December 31, net | $ 12,143 | $ 12,197 |
Goodwill (Details) - USD ($) $ in Thousands |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|
Goodwill [Abstract] | ||
Goodwill | $ 10,078 | $ 10,078 |
Intangible Assets (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Intangible Assets [Abstract] | ||
Amortization of intangible assets | $ 1,244 | $ 1,620 |
Finite-Lived Intangible Assets, Amortization Expense, Next Rolling Twelve Months | 1,166 | |
Finite-Lived Intangible Assets, Amortization Expense, Rolling Year Two | 1,022 | |
Finite-Lived Intangible Assets, Amortization Expense, Rolling Year Three | 952 | |
Finite-Lived Intangible Assets, Amortization Expense, Rolling Year Four | 815 | |
Finite-Lived Intangible Assets, Amortization Expense, Rolling Year Five | $ 710 |
Property and Equipment Fixed Assets Roll-Forward (Details) - USD ($) $ in Thousands |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|
Property, Plant and Equipment [Line Items] | ||
Land | $ 1,984 | $ 1,984 |
Building | 4,565 | 4,565 |
Leasehold Improvements | 463 | 462 |
Furniture and equipment | 2,588 | 2,743 |
Computer hardware | 8,514 | 11,972 |
Accumulated Depreciation | 12,537 | 15,751 |
Cost | 18,114 | 21,726 |
Carrying Value | 5,577 | 5,975 |
Building and Building Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Accumulated Depreciation | 1,669 | 1,539 |
Building [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Carrying Value | 2,896 | 3,026 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Accumulated Depreciation | 330 | 276 |
Carrying Value | 133 | 186 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Accumulated Depreciation | 2,318 | 2,442 |
Carrying Value | 270 | 301 |
Computer Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Accumulated Depreciation | 8,220 | 11,494 |
Carrying Value | $ 294 | $ 478 |
Property and Equipment (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Property, Plant and Equipment [Line Items] | ||
Depreciation | $ 200 | $ 0 |
Real Estate Held-for-sale | 5,200 | |
Impairment write-down | 0 | 1,180 |
Loss on disposal of asset held for sale | 0 | 4,300 |
Gain (Loss) on Disposition of Property Plant Equipment | (125) | |
Carrying Value | 5,577 | 5,975 |
Land and Building [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Carrying Value | 5,000 | |
General and Administrative Expense [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Depreciation | $ 400 | $ 800 |
Unpaid Loss and Loss Adjustment Expenses (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Property, Liability and Casualty Insurance Product Line [Member] | ||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||
Liability for Unpaid Claims and Claims Adjustment Expense, Incurred Claims, Prior Years | $ (616) | $ 5,123 |
Unpaid Loss and Loss Adjustment Expenses Vehicle service agreements (tables) (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Balance at beginning of period | $ 2,975 | |
Balance at end of period | 2,975 | $ 2,975 |
Other Insurance Product Line [Member] | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Balance at beginning of period | 2,975 | 3,128 |
Current year | 5,757 | 6,773 |
Prior years | 0 | 0 |
Current year | 5,757 | 6,866 |
Prior years | 0 | 60 |
Balance at end of period | $ 2,975 | $ 2,975 |
Debt instruments (Details) - USD ($) $ in Thousands |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|
Debt Instrument [Line Items] | ||
Debt Instrument, Principal Value | $ 90,500 | $ 104,118 |
Subordinated debt, at fair value | 39,898 | 40,659 |
LROC preferred units due 2015, Fair Value | 0 | 13,618 |
Long-term Debt | 39,898 | 54,277 |
Long-term Debt [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Principal Value | 0 | 13,618 |
Subordinated Debt [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Principal Value | $ 90,500 | $ 90,500 |
Debt Senior unsecured debentures (Details) - USD ($) number in Thousands, $ in Thousands |
3 Months Ended | 12 Months Ended | ||
---|---|---|---|---|
Nov. 06, 2015 |
Mar. 31, 2014 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Debt Instrument [Line Items] | ||||
Debt Instrument, Periodic Payment, Interest | $ 22,100 | |||
Redemption of senior unsecured debentures | $ 0 | $ 14,356 | ||
Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Senior Notes | $ 100,000 | |||
Debt Instrument, Interest Rate, Stated Percentage | 0.00% | |||
Debt Instrument, Increase (Decrease), Net | $ 25,000 | |||
Debt Instrument, Periodic Payment, Interest | $ 500 |
Debt Subordinated debt (Details) - USD ($) $ in Thousands |
12 Months Ended | |||
---|---|---|---|---|
Nov. 06, 2015 |
Dec. 31, 2015 |
Sep. 30, 2015 |
Dec. 31, 2014 |
|
Debt Instrument [Line Items] | ||||
Debt Instrument, Principal Value | $ 90,500 | $ 104,118 | ||
Interest Payable | $ 0 | 17,400 | ||
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Minimum | 3.85% | |||
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Maximum | 4.20% | |||
Debt Instrument, Interest Rate, Effective Percentage Rate Range, Minimum | 4.27% | |||
Debt Instrument, Interest Rate, Effective Percentage Rate Range, Maximum | 4.61% | |||
Debt Instrument, Periodic Payment, Interest | $ 22,100 | |||
Subordinated Debt [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Principal Value | $ 90,500 | $ 90,500 |
Debt LROC preferred units (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 12 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2015 |
Dec. 31, 2005 |
Jun. 30, 2015 |
Dec. 31, 2014 |
Sep. 30, 2014 |
Jun. 30, 2014 |
Dec. 31, 2010 |
Sep. 30, 2010 |
Jun. 30, 2010 |
Dec. 31, 2009 |
|
Debt Instrument [Line Items] | ||||||||||
LROC preferred units | 2,333,715 | 1,500,000 | 750,000,000 | 833,715 | ||||||
Share Price | $ 4.50 | $ 0 | ||||||||
LROC Preferred Units Tendered | 1,525,150 | |||||||||
Subsidiary or Equity Method Investee, Cumulative Percentage Ownership after All Transactions | 74.80% | |||||||||
Debt Instrument, Face Amount | $ 15,800 | $ 13,618 | ||||||||
LROC preferred units [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Proceeds from Issuance of Long-term Debt | $ 78,000 | |||||||||
Proceeds from Issuance of Long-term Debt and Capital Securities, Net | $ 74,100 | |||||||||
Share Price | $ 0 | $ 0 |
Finance Lease Obligation Liability (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Sale Leaseback Transaction [Line Items] | ||
Sale Leaseback Transaction, Lease Terms | five-year | |
Sale Leaseback Transaction, Deferred Gain, Gross | $ 1,100 | |
Land and Building [Member] | ||
Sale Leaseback Transaction [Line Items] | ||
Sale Leaseback Transaction, Net Book Value | $ 4,900 | $ 4,740 |
Income Tax (Benefit) Expense (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Income tax (benefit expense [Abstract] | ||
Current income tax expense (benefit) | $ 6 | $ (1,484) |
Deferred income tax expense | 87 | 263 |
Income tax expense (benefit) | $ 93 | $ (1,221) |
Income Tax (Benefit) Expense Reconciliation (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Income tax (benefit) expense reconciliation [Abstract] | ||
Income tax benefit at United States statutory income tax rate | $ (3,849) | $ (5,402) |
Effective Income Tax Rate Reconciliation, Equity in Earnings (Losses) of Unconsolidated Subsidiary, Amount | 2,384 | |
Valuation allowance | 1,033 | 5,686 |
Non-taxable dividend income | (415) | (1,669) |
Effective Income Tax Rate Reconciliation, Tax Contingency, Foreign, Amount | 223 | 514 |
Prior year tax | 0 | (341) |
Effective Income Tax Rate Reconciliation, Disposition of Business, Amount | 0 | 423 |
Other | 629 | 736 |
Income tax expense (benefit) | 93 | (1,221) |
Deferred Foreign Income Tax Expense (Benefit) | 88 | 88 |
Effective Income Tax Rate Reconciliation, Other Reconciling Items, Amount | $ 0 | $ (1,256) |
Income Taxes Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|
Losses carried forward | $ 295,320 | $ 302,246 |
Unpaid loss and loss adjustment expenses and unearned premiums | 5,314 | 5,693 |
Intangible assets | 1,941 | 1,820 |
Deferred Tax Assets, Debt Issuance Costs | 983 | 1,004 |
Deferred revenue | 297 | 319 |
Depreciable assets | 117 | 82 |
Foreign exchange adjustment on note payable | 0 | 1,449 |
Other | 1,518 | 1,067 |
Valuation allowance | (283,636) | (287,151) |
Deferred income tax assets | 21,854 | 26,529 |
Fair value of debt | (17,205) | (16,946) |
Deferred acquisition costs | (4,129) | (4,147) |
Indefinite life intangibles | (2,924) | (2,837) |
Investments | (450) | (5,436) |
Other | (70) | 0 |
Deferred income tax liabilities | 24,778 | 29,366 |
Net deferred income tax liabilities | $ 2,924 | $ 2,837 |
Income Taxes Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |||
Current income tax benefit | $ 6 | $ (1,484) | |
Unrecognized tax benefits - beginning of year | 0 | 0 | $ 3,201 |
Gross additions - current year tax positions | 0 | 0 | |
Gross additions - prior year tax positions | 0 | 0 | |
Gross reductions - prior year tax positions | 0 | (1,256) | |
Gross reductions - settlements with taxing authorities | 0 | (1,945) | |
Impact due to expiration of statute of limitations | 0 | 0 | |
Deferred income tax expense | 87 | 263 | |
Income tax benefit | $ 93 | $ (1,221) |
Income Taxes Income Taxes (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Valuation Allowance [Line Items] | ||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 34.00% | |
Deferred Tax Assets, Valuation Allowance | $ 283,636 | $ 287,151 |
Deferred Tax Liabilities, Net | 2,924 | 2,837 |
Domestic Tax Authority [Member] | ||
Valuation Allowance [Line Items] | ||
Deferred Tax Assets, Valuation Allowance | 277,100 | 280,100 |
Foreign Tax Authority [Member] | ||
Valuation Allowance [Line Items] | ||
Deferred Tax Assets, Valuation Allowance | $ 6,500 | $ 7,100 |
Income Taxes Operating loss carryforward (Details) - USD ($) $ in Thousands |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|
Operating Loss Carryforwards [Line Items] | ||
Deferred Tax Assets, Valuation Allowance | $ 283,636 | $ 287,151 |
Operating Loss Carryforwards | 18,200 | |
Foreign Tax Authority [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Deferred Tax Assets, Valuation Allowance | 6,500 | 7,100 |
Operating Loss Carryforwards | 85,300 | |
Domestic Tax Authority [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Deferred Tax Assets, Valuation Allowance | 277,100 | $ 280,100 |
Operating Loss Carryforwards | $ 843,400 |
Income Taxes Unrecognized tax benefits reconciliation (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Unrecognized tax benefits reconciliation [Abstract] | |||
Unrecognized tax benefits - beginning of year | $ 0 | $ 0 | $ 3,201 |
Gross additions - current year tax positions | 0 | 0 | |
Gross additions - prior year tax positions | 0 | 0 | |
Gross reductions - prior year tax positions | 0 | (1,256) | |
Gross reductions - settlements with taxing authorities | 0 | (1,945) | |
Impact due to expiration of statute of limitations | $ 0 | $ 0 |
Income Taxes Interest and Penalties (Details) - USD ($) $ in Millions |
12 Months Ended | |
---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Unrecognized tax benefits reconciliation [Abstract] | ||
Income Tax Examination, Penalties and Interest Expense | $ 0 | $ 1 |
Loss From Continuing Operations Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Less: net income attributable to noncontrolling interests in consolidated subsidiaries | $ 162 | $ 1,596 |
Dividends, Preferred Stock | (329) | (300) |
Income (Loss) from Continuing Operations Attributable to Parent | (11,906) | (16,562) |
Net Income (Loss) Available to Common Stockholders, Basic | 778 | (13,120) |
Income (Loss) from Continuing Operations, Including Portion Attributable to Noncontrolling Interest | $ (11,415) | $ (14,666) |
Basic: | 19,710 | 17,398 |
Diluted: | 19,710 | 17,398 |
Basic: | $ (0.60) | $ (0.95) |
Diluted: | $ (0.60) | $ (0.95) |
Stock-Based Compensation Stock options (Details) - $ / shares |
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
May. 13, 2013 |
---|---|---|---|---|
Stock option activity during the year [Abstract] | ||||
Number of Shares Authorized | 355,625 | 300,000 | ||
Price of Stock Options | $ 4.50 | $ 4.50 | ||
Number of Outstanding Options | 611,875 | |||
Weighted Average Exercise Price | $ 4.50 |
Stock-Based Compensation Black-Scholes pricing model (Details) |
12 Months Ended |
---|---|
Dec. 31, 2015 | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Risk-free interest rate | 0.06% - 1.4% |
Expected volatility | 0.40% |
Expected term (in years) | 0.78 - 4 |
Stock-Based Compensation Restricted stock awards (Details) - USD ($) $ / shares in Units, $ in Thousands |
9 Months Ended | 12 Months Ended | |
---|---|---|---|
Sep. 30, 2015 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unvested at December 31, 2014 | 1,972,345 | ||
Unamortized compensation expense | $ 6,700 | ||
Weighted Average Grant Date Fair Value (per share) | $ 4.14 | $ 4.14 | |
Forfeited | (19,680) | ||
Unvested at December 31, 2015 | 1,952,665 | ||
Share-based Compensation | $ 802 | $ 1,239 |
Stock-Based Compensation Employee share purchase plan (Details) - USD ($) $ in Millions |
12 Months Ended | |
---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Defined Contribution Plan Disclosure [Line Items] | ||
Employee Stock Ownership Plan (ESOP), Compensation Expense | $ 0.2 | $ 0.1 |
Share-based Compensation Arrangement by Share-based Payment Award, Maximum Employee Subscription Rate | 5.00% | |
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay | 100.00% |
Employee Benefit Plan (Details) - USD ($) |
12 Months Ended | |
---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Employee benefit plan [Abstract] | ||
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Percent | 60.00% | |
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Amount | $ 18,000 | $ 17,500 |
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay | 50.00% | |
Defined Contribution Plan, Employer Matching Contribution, Percent of Match | 5.00% | |
Defined Contribution Plan, Employers Matching Contribution, Annual Vesting Percentage | 100.00% | |
Defined Contribution Plan, Cost Recognized | $ 336,759 | $ 338,443 |
Class A Preferred Stock (Details) - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | |||
---|---|---|---|---|
Jun. 30, 2014 |
Dec. 31, 2015 |
Sep. 30, 2014 |
Feb. 03, 2014 |
|
Class of Stock [Line Items] | ||||
Exercise of warrants | 2,875,000 | |||
Share Price | $ 0 | $ 4.50 | ||
Mandatorily Redeemable Preferred Stock, Fair Value Disclosure | $ 6.6 | |||
Dividends Payable | $ 0.6 |
Shareholders' Equity (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 9 Months Ended | 12 Months Ended | ||
---|---|---|---|---|---|
Jun. 30, 2014 |
Sep. 30, 2014 |
Dec. 31, 2015 |
Dec. 31, 2014 |
Mar. 10, 2016 |
|
Class of Stock [Line Items] | |||||
Common stock, shares outstanding | 19,709,706 | 19,709,706 | 19,709,706 | ||
Share Price | $ 0 | $ 4.50 | |||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 0.25 | ||||
Exercise of warrants | 2,875,000 | ||||
Stock Redeemed or Called During Period, Shares | 1,000 | ||||
Proceeds from exercise of warrants | $ 0 | $ 14,803 | |||
Series A [Member] | |||||
Class of Stock [Line Items] | |||||
Stock Redeemed or Called During Period, Shares | 3,280,000 | ||||
Series A [Member] | |||||
Class of Stock [Line Items] | |||||
Share Price | $ 5.00 | ||||
Exercise of warrants | 3,280,790 | ||||
Series B [Member] | |||||
Class of Stock [Line Items] | |||||
Share Price | $ 5.00 | ||||
Exercise of warrants | 1,642,975 |
Shareholders' Equity Shareholders' Equity (tables) (Details) - $ / shares |
3 Months Ended | 12 Months Ended | |
---|---|---|---|
Jun. 30, 2014 |
Dec. 31, 2015 |
Sep. 30, 2014 |
|
Class of Warrant or Right [Line Items] | |||
Share Price | $ 0 | $ 4.50 | |
Debt Instrument, Maturity Date, Description | 7.7 | ||
Exercise of warrants | 2,875,000 | ||
Series A [Member] | |||
Class of Warrant or Right [Line Items] | |||
Share Price | $ 5.00 | ||
Debt Instrument, Maturity Date, Description | 7.7 | ||
Exercise of warrants | 3,280,790 | ||
Class of Warrant or Right [Domain] | |||
Class of Warrant or Right [Line Items] | |||
Exercise of warrants | 4,923,765 | ||
Series B [Member] | |||
Class of Warrant or Right [Line Items] | |||
Share Price | $ 5.00 | ||
Debt Instrument, Maturity Date, Description | 7.7 | ||
Exercise of warrants | 1,642,975 |
Shareholders' Equity Warrants outstanding dates (Details) |
12 Months Ended |
---|---|
Dec. 31, 2014 | |
Expire Date 1 [Member] | |
Investment [Line Items] | |
Investment Maturity Date Range Start | Sep. 16, 2013 |
Investment Warrants Expiration Date | Sep. 15, 2023 |
Expire Date 2 [Member] | |
Investment [Line Items] | |
Investment Maturity Date Range Start | Feb. 03, 2014 |
Investment Warrants Expiration Date | Sep. 15, 2023 |
Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent Consideration Classified as Equity, Fair Value Disclosure | $ 1,982 | $ 3,121 |
Liability for Future Policy Benefits, Description | 13500 | |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent Consideration Classified as Equity, Fair Value Disclosure | $ 1,982 | $ 3,121 |
Fair Value of Financial Instruments Contingent Consideration (tables) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Contingent Consideration Classified as Equity, Fair Value Disclosure | $ 1,982 | $ 3,121 | |
Contingent consideration benefit | (1,139) | (2,223) | |
Fair Value, Inputs, Level 3 [Member] | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Contingent Consideration Classified as Equity, Fair Value Disclosure | $ 1,982 | 3,121 | |
Business Combination, Contingent Consideration, Liability | $ 3,121 | $ 5,344 |
Commitments and Contigent Liabilities (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Other Commitments [Line Items] | ||
Long-term Purchase Commitment, Amount | $ 2,500 | |
Unfunded Commitments | 2,000 | |
Available-for-sale Securities Pledged as Collateral | 12,867 | $ 12,944 |
Pledged Assets Separately Reported, Nonsecuritized Investments Pledged as Collateral, at Fair Value | $ 15,800 | $ 17,500 |
Commitments and Contigent Liabilities Future lease payments (tables) (Details) $ in Thousands |
Dec. 31, 2015
USD ($)
|
---|---|
Future lease payments (tables) [Abstract] | |
Operating Leases, Future Minimum Payments Due, Next Twelve Months | $ 1,584 |
Operating Leases, Future Minimum Payments Due | 18 |
Operating Leases, Future Minimum Payments, Due in Two Years | 1,561 |
Operating Leases, Future Minimum Payments, Due in Three Years | 873 |
Operating Leases, Future Minimum Payments, Due in Four Years | 666 |
Operating Leases, Future Minimum Payments, Due Thereafter | $ 70 |
Commitments and Contigent Liabilities Future minimum lease payments (Details) |
12 Months Ended | |
---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Maximum [Member] | Office Building [Member] | ||
Operating Leased Assets [Line Items] | ||
Lessee Leasing Arrangements, Operating Leases, Term of Contract | 10 years | |
Maximum [Member] | Equipment [Member] | ||
Operating Leased Assets [Line Items] | ||
Lessee Leasing Arrangements, Operating Leases, Term of Contract | 5 years | |
Minimum [Member] | Office Building [Member] | ||
Operating Leased Assets [Line Items] | ||
Lessee Leasing Arrangements, Operating Leases, Term of Contract | 3 years | 3 years |
Regulatory Capital Requirements and Ratios (Details) |
Dec. 31, 2015 |
Dec. 31, 2012 |
Dec. 31, 2011 |
---|---|---|---|
Supplementary Insurance Information, by Segment [Line Items] | |||
Risk-Based Capital, authorized control level | 200.00% | ||
Capital to Risk Weighted Assets | 873.00% | 157.00% | |
Property and Casualty, Commercial Insurance Product Line [Member] | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
Capital to Risk Weighted Assets | 1111.00% | 160.00% |
Statutory Information and Policies (Details) $ in Millions |
Dec. 31, 2015
USD ($)
|
---|---|
Statutory Information and Policies [Abstract] | |
Statutory Accounting Practices, Statutory Capital and Surplus Required | $ 24.8 |
Risk-Based Capital, authorized control level | 200.00% |
Statutory Information and Policies Statutory Information and policies (tables) (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Statutory information and policies (tables) [Abstract] | ||
Statutory Accounting Practices, Statutory Net Income Amount | $ 6,298 | $ 2,725 |
Statutory Accounting Practices, Statutory Capital and Surplus, Balance | $ 42,387 | $ 39,042 |
Financial Statements Schedules Schedule IV. Reinsurance - USD ($) number in Thousands, $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Supplemental Information for Property, Casualty Insurance Underwriters [Line Items] | ||
Supplemental Information for Property, Casualty Insurance Underwriters, Premiums Written | $ 116,239 | $ 123,378 |
Premiums, Percentage Assumed to Net | 0.00% | 0.00% |
Direct Premiums Written | $ 97,414 | $ 99,540 |
Ceded Premiums Written | (165) | 3,695 |
Assumed Premiums Written | 19,000 | 20,100 |
Property, Liability and Casualty Insurance Product Line [Member] | ||
Supplemental Information for Property, Casualty Insurance Underwriters [Line Items] | ||
Supplemental Information for Property, Casualty Insurance Underwriters, Premiums Written | 116,239 | 118,021 |
Assumed Premiums Written | $ 18,990 | $ 20,143 |
Financial Statements Schedules Schedule V. Valuation and Qualifying Accounts - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Valuation Allowance [Line Items] | |||
Valuation Allowances and Reserves, Balance | $ 283,636 | $ 287,151 | $ 281,613 |
Valuation Allowances and Reserves, Charged to Cost and Expense | 1,033 | 5,686 | |
Valuation Allowances and Reserves, Adjustments | $ (4,548) | $ (148) |
Label | Element | Value |
---|---|---|
Accumulated Net Investment Gain (Loss) Attributable to Parent [Member] | ||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Net of Tax | us-gaap_OtherComprehensiveIncomeLossReclassificationAdjustmentFromAOCIForSaleOfSecuritiesNetOfTax | $ (1,552,000) |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Net of Tax | us-gaap_OtherComprehensiveIncomeLossReclassificationAdjustmentFromAOCIForSaleOfSecuritiesNetOfTax | (1,342,000) |
Accumulated Other Comprehensive Income (Loss), Net of Tax | us-gaap_AccumulatedOtherComprehensiveIncomeLossNetOfTax | 15,583,000 |
Accumulated Other Comprehensive Income (Loss), Net of Tax | us-gaap_AccumulatedOtherComprehensiveIncomeLossNetOfTax | 14,622,000 |
Accumulated Other Comprehensive Income (Loss), Net of Tax | us-gaap_AccumulatedOtherComprehensiveIncomeLossNetOfTax | 13,080,000 |
Other Comprehensive Income (Loss), before Tax, Portion Attributable to Parent | us-gaap_OtherComprehensiveIncomeLossBeforeTaxPortionAttributableToParent | (2,513,000) |
Other Comprehensive Income (Loss), before Tax, Portion Attributable to Parent | us-gaap_OtherComprehensiveIncomeLossBeforeTaxPortionAttributableToParent | (2,884,000) |
Other Comprehensive Income (Loss), Net of Tax | us-gaap_OtherComprehensiveIncomeLossNetOfTax | (961,000) |
Other Comprehensive Income (Loss), Net of Tax | us-gaap_OtherComprehensiveIncomeLossNetOfTax | (1,542,000) |
AOCI Attributable to Parent [Member] | ||
Other Comprehensive Income (Loss), Net of Tax | us-gaap_OtherComprehensiveIncomeLossNetOfTax | (931,000) |
Other Comprehensive Income (Loss), Net of Tax | us-gaap_OtherComprehensiveIncomeLossNetOfTax | 630,000 |
Foreign Currency Gain (Loss) [Member] | ||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Net of Tax | us-gaap_OtherComprehensiveIncomeLossReclassificationAdjustmentFromAOCIForSaleOfSecuritiesNetOfTax | 0 |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Net of Tax | us-gaap_OtherComprehensiveIncomeLossReclassificationAdjustmentFromAOCIForSaleOfSecuritiesNetOfTax | (1,243,000) |
Accumulated Other Comprehensive Income (Loss), Net of Tax | us-gaap_AccumulatedOtherComprehensiveIncomeLossNetOfTax | (5,982,000) |
Accumulated Other Comprehensive Income (Loss), Net of Tax | us-gaap_AccumulatedOtherComprehensiveIncomeLossNetOfTax | 5,952,000 |
Accumulated Other Comprehensive Income (Loss), Net of Tax | us-gaap_AccumulatedOtherComprehensiveIncomeLossNetOfTax | 3,780,000 |
Other Comprehensive Income (Loss), before Tax, Portion Attributable to Parent | us-gaap_OtherComprehensiveIncomeLossBeforeTaxPortionAttributableToParent | 30,000 |
Other Comprehensive Income (Loss), before Tax, Portion Attributable to Parent | us-gaap_OtherComprehensiveIncomeLossBeforeTaxPortionAttributableToParent | 929,000 |
Other Comprehensive Income (Loss), Net of Tax | us-gaap_OtherComprehensiveIncomeLossNetOfTax | 30,000 |
Other Comprehensive Income (Loss), Net of Tax | us-gaap_OtherComprehensiveIncomeLossNetOfTax | $ 2,172,000 |
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MD!8:5F.SC<*)HK0TL!I.+<$I\CB=1,GH-GK@/R7U @$[._7I>