Incorporated under the Laws of Ohio | 03-0483872 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Large accelerated filer | ¨ | Accelerated filer | x | |
Non-accelerated filer | o (Do not check if smaller reporting company) | Smaller reporting company | ¨ |
Page | ||
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Item 2 | ||
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Item 1A | ||
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Item 6 | ||
EXHIBIT INDEX | ||
Exhibit 31.1 | Certification of the Chief Executive Officer under Exchange Act Rule 13a-14(a) | |
Exhibit 31.2 | Certification of the Chief Financial Officer under Exchange Act Rule 13a-14(a) | |
Exhibit 32 | Certification of the Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350 | |
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 |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||
2013 | 2012 | % Change | 2013 | 2012 | % Change | ||||||||||||||||
Revenues: | |||||||||||||||||||||
Earned premium | $ | 331,215 | $ | 294,118 | 12.6 | % | $ | 649,804 | $ | 571,266 | 13.7 | % | |||||||||
Net investment income | 8,622 | 9,600 | (10.2 | )% | 16,960 | 19,346 | (12.3 | )% | |||||||||||||
Net realized gains on investments1 | 794 | 2,166 | (63.4 | )% | 4,617 | 2,405 | 92.0 | % | |||||||||||||
Other income | 73 | 98 | (25.3 | )% | 125 | 367 | (66.0 | )% | |||||||||||||
Total revenues | 340,704 | 305,983 | 11.3 | % | 671,506 | 593,385 | 13.2 | % | |||||||||||||
Costs and Expenses: | |||||||||||||||||||||
Losses and loss adjustment expenses | 257,079 | 230,907 | 11.3 | % | 507,449 | 445,685 | 13.9 | % | |||||||||||||
Commissions and other underwriting expenses | 66,986 | 60,863 | 10.1 | % | 129,359 | 123,003 | 5.2 | % | |||||||||||||
Interest expense | 3,460 | 2,703 | 28.0 | % | 6,998 | 5,405 | 29.5 | % | |||||||||||||
Corporate general and administrative expenses | 2,335 | 2,084 | 12.0 | % | 4,072 | 4,100 | (0.7 | )% | |||||||||||||
Other expenses | 717 | 103 | 596.4 | % | 1,394 | 347 | 302.1 | % | |||||||||||||
Total costs and expenses | 330,575 | 296,660 | 11.4 | % | 649,272 | 578,540 | 12.2 | % | |||||||||||||
Earnings before income taxes | 10,129 | 9,323 | 8.6 | % | 22,234 | 14,845 | 49.8 | % | |||||||||||||
Provision for income taxes | 2,721 | 2,369 | 14.9 | % | 6,164 | 3,597 | 71.3 | % | |||||||||||||
Net Earnings | $ | 7,408 | $ | 6,954 | 6.5 | % | $ | 16,070 | $ | 11,248 | 42.9 | % | |||||||||
Net Earnings per Common Share: | |||||||||||||||||||||
Basic | $ | 0.65 | $ | 0.59 | 10.2 | % | $ | 1.40 | $ | 0.96 | 45.8 | % | |||||||||
Diluted | 0.64 | 0.58 | 10.3 | % | 1.37 | 0.94 | 45.7 | % | |||||||||||||
Average Number of Common Shares: | |||||||||||||||||||||
Basic | 11,448 | 11,709 | (2.2 | )% | 11,485 | 11,719 | (2.0 | )% | |||||||||||||
Diluted | 11,643 | 11,937 | (2.5 | )% | 11,698 | 11,993 | (2.5 | )% | |||||||||||||
Cash Dividends per Common Share | $ | 0.300 | $ | 0.225 | 33.3 | % | $ | 0.600 | $ | 0.450 | 33.3 | % | |||||||||
1Net realized gains before impairment losses | $ | 1,093 | $ | 2,584 | (57.7 | )% | $ | 4,988 | $ | 3,470 | 43.8 | % | |||||||||
Total other-than-temporary impairment (OTTI) losses | (486 | ) | (418 | ) | 16.3 | % | (558 | ) | (1,034 | ) | (46.1 | )% | |||||||||
Non-credit portion in other comprehensive income | 187 | 0 | NM | 187 | 1 | NM | |||||||||||||||
OTTI losses reclassified from other comprehensive income | 0 | 0 | 0.0 | % | 0 | (32 | ) | (100.0 | )% | ||||||||||||
Net impairment losses recognized in earnings | (299 | ) | (418 | ) | (28.4 | )% | (371 | ) | (1,065 | ) | (65.2 | )% | |||||||||
Total net realized gains on investments | $ | 794 | $ | 2,166 | (63.4 | )% | $ | 4,617 | $ | 2,405 | 92.0 | % |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Net earnings | $ | 7,408 | $ | 6,954 | $ | 16,070 | $ | 11,248 | |||||||
Other comprehensive income (loss) before tax: | |||||||||||||||
Net change in postretirement benefit liability | 50 | (6 | ) | 100 | (11 | ) | |||||||||
Unrealized gains (losses) on investments: | |||||||||||||||
Unrealized holding gains (losses) arising during the period | (29,998 | ) | 3,455 | (27,310 | ) | 10,118 | |||||||||
Less: Reclassification adjustments for gains included in net income | (794 | ) | (2,166 | ) | (4,617 | ) | (2,405 | ) | |||||||
Unrealized gains (losses) on investments, net | (30,792 | ) | 1,289 | (31,928 | ) | 7,713 | |||||||||
Other comprehensive income (loss), before tax | (30,742 | ) | 1,283 | (31,828 | ) | 7,702 | |||||||||
Income tax benefit (expense) related to components of other comprehensive income | 10,760 | (449 | ) | 11,140 | (2,696 | ) | |||||||||
Other comprehensive income (loss), net of tax | (19,982 | ) | 834 | (20,688 | ) | 5,006 | |||||||||
Comprehensive income (loss) | $ | (12,575 | ) | $ | 7,788 | $ | (4,618 | ) | $ | 16,254 |
June 30, 2013 | December 31, 2012 | ||||||
(unaudited) | |||||||
Assets | |||||||
Investments: | |||||||
Fixed maturities – at fair value (amortized cost $1,313,845 and $1,278,051) | $ | 1,323,336 | $ | 1,321,828 | |||
Equity securities – at fair value (cost $64,604 and $69,992) | 70,077 | 73,106 | |||||
Short-term investments - at fair value (amortized cost $3,617 and $0) | 3,616 | 0 | |||||
Total investments | $ | 1,397,029 | $ | 1,394,934 | |||
Cash and cash equivalents | 115,861 | 165,182 | |||||
Accrued investment income | 12,784 | 11,926 | |||||
Agents’ balances and premium receivable, net of allowances for doubtful accounts of $15,499 and $16,124 | 456,447 | 427,156 | |||||
Property and equipment, net of accumulated depreciation of $49,131 and $45,339 | 44,479 | 39,301 | |||||
Prepaid reinsurance premium | 3,548 | 2,637 | |||||
Recoverables from reinsurers (includes $786 and $750 on paid losses and LAE) | 14,606 | 14,428 | |||||
Deferred policy acquisition costs | 92,268 | 88,251 | |||||
Current and deferred income taxes | 30,931 | 25,798 | |||||
Receivable for securities sold | 5,399 | 48,467 | |||||
Other assets | 11,800 | 10,236 | |||||
Goodwill | 75,275 | 75,275 | |||||
Total assets | $ | 2,260,428 | $ | 2,303,593 | |||
Liabilities and Shareholders’ Equity | |||||||
Liabilities: | |||||||
Unpaid losses and loss adjustment expenses | $ | 612,004 | $ | 572,894 | |||
Unearned premium | 581,795 | 538,142 | |||||
Payable to reinsurers | 0 | 137 | |||||
Long-term debt (fair value $272,767 and $288,879) | 275,000 | 275,000 | |||||
Commissions payable | 30,813 | 18,073 | |||||
Payable for securities purchased | 24,344 | 132,440 | |||||
Other liabilities | 97,802 | 110,665 | |||||
Total liabilities | $ | 1,621,759 | $ | 1,647,351 | |||
Commitments and contingencies (See Note 9) | |||||||
Shareholders’ equity: | |||||||
Common stock, no par value (50,000,000 shares authorized; 21,538,888 and 21,493,354 shares issued) | $ | 21,589 | $ | 21,529 | |||
Additional paid-in capital | 364,599 | 361,845 | |||||
Retained earnings | 675,341 | 666,199 | |||||
Accumulated other comprehensive income, net of tax | 9,163 | 29,851 | |||||
Treasury stock, at cost (10,043,372 and 9,888,680 shares) | (432,022 | ) | (423,181 | ) | |||
Total shareholders’ equity | $ | 638,669 | $ | 656,242 | |||
Total liabilities and shareholders’ equity | $ | 2,260,428 | $ | 2,303,593 |
Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss), Net of Tax | Treasury Stock | Total | ||||||||||||||||||
Balance at December 31, 2011 | $ | 21,358 | $ | 355,911 | $ | 652,423 | $ | 35,319 | $ | (403,221 | ) | $ | 661,789 | ||||||||||
Net earnings | — | — | 11,248 | — | — | 11,248 | |||||||||||||||||
Net change in postretirement benefit liability | — | — | — | (7 | ) | — | (7 | ) | |||||||||||||||
Change in unrealized gain on investments | — | — | — | 4,180 | — | 4,180 | |||||||||||||||||
Change in non-credit component of impairment losses on fixed maturities | — | — | — | 833 | — | 833 | |||||||||||||||||
Comprehensive income | $ | 16,254 | |||||||||||||||||||||
Dividends paid to common shareholders | — | — | (5,300 | ) | — | — | (5,300 | ) | |||||||||||||||
Shares issued and share-based compensation expense, including tax benefit | 68 | 2,911 | — | — | — | 2,978 | |||||||||||||||||
Acquisition of treasury stock | — | — | — | — | (8,562 | ) | (8,562 | ) | |||||||||||||||
Balance at June 30, 2012 | $ | 21,425 | $ | 358,821 | $ | 658,371 | $ | 40,325 | $ | (411,783 | ) | $ | 667,160 | ||||||||||
Net earnings | $ | — | $ | — | $ | 13,072 | $ | — | $ | — | $ | 13,072 | |||||||||||
Net change in postretirement benefit liability | — | — | — | (959 | ) | — | (959 | ) | |||||||||||||||
Change in unrealized gain on investments | — | — | — | (10,047 | ) | — | (10,047 | ) | |||||||||||||||
Change in non-credit component of impairment losses on fixed maturities | — | — | — | 531 | — | 531 | |||||||||||||||||
Comprehensive income | $ | 2,597 | |||||||||||||||||||||
Dividends paid to common shareholders | — | — | (5,244 | ) | — | — | (5,244 | ) | |||||||||||||||
Shares issued and share-based compensation expense, including tax benefit | 104 | 3,023 | — | — | — | 3,127 | |||||||||||||||||
Acquisition of treasury stock | — | — | — | — | (11,398 | ) | (11,398 | ) | |||||||||||||||
Balance at December 31, 2012 | $ | 21,529 | $ | 361,845 | $ | 666,199 | $ | 29,851 | $ | (423,181 | ) | $ | 656,242 | ||||||||||
Net earnings | $ | — | $ | — | $ | 16,070 | $ | — | $ | — | $ | 16,070 | |||||||||||
Net change in postretirement benefit liability | 65 | 65 | |||||||||||||||||||||
Change in unrealized gain on investments | — | — | — | (20,945 | ) | — | (20,945 | ) | |||||||||||||||
Change in non-credit component of impairment losses on fixed maturities | — | — | — | 192 | — | 192 | |||||||||||||||||
Comprehensive loss | $ | (4,618 | ) | ||||||||||||||||||||
Dividends paid to common shareholders | — | — | (6,928 | ) | — | — | (6,928 | ) | |||||||||||||||
Shares issued and share-based compensation expense, including tax benefit | 60 | 2,754 | — | — | — | 2,814 | |||||||||||||||||
Acquisition of treasury stock | — | — | — | — | (8,841 | ) | (8,841 | ) | |||||||||||||||
Balance at June 30, 2013 | $ | 21,589 | $ | 364,599 | $ | 675,341 | $ | 9,163 | $ | (432,022 | ) | $ | 638,669 |
Three months ended June 30, | |||||||
2013 | 2012 | ||||||
Operating Activities: | |||||||
Net earnings | $ | 7,408 | $ | 6,954 | |||
Adjustments: | |||||||
Depreciation | 2,031 | 2,159 | |||||
Amortization | 5,091 | 2,353 | |||||
Net realized gains on investments | (794 | ) | (2,166 | ) | |||
Gain on disposal of property and equipment | (1 | ) | (10 | ) | |||
Share-based compensation expense | 1,446 | 968 | |||||
Activity related to rabbi trust | (12 | ) | (16 | ) | |||
Decrease (increase) in accrued investment income | (958 | ) | 505 | ||||
Decrease (increase) in agents’ balances and premium receivable | 9,676 | 8,159 | |||||
Decrease (increase) in reinsurance receivables | 240 | 1,104 | |||||
Decrease (increase) in deferred policy acquisition costs | 3,824 | 1,076 | |||||
Decrease (increase) in other assets | 2,681 | (4,086 | ) | ||||
Increase (decrease) in unpaid losses and loss adjustment expenses | 15,203 | 16,942 | |||||
Increase (decrease) in unearned premium | (10,861 | ) | (5,502 | ) | |||
Increase (decrease) increase in payable to reinsurers | 0 | (185 | ) | ||||
Increase (decrease) in other liabilities | 2,913 | 5,948 | |||||
Net cash provided by operating activities | 37,889 | 34,201 | |||||
Investing Activities: | |||||||
Purchases of fixed maturities | (183,985 | ) | (131,418 | ) | |||
Purchases of equity securities | (1,100 | ) | 0 | ||||
Purchases of short-term investments | (3,616 | ) | 0 | ||||
Purchases of property and equipment | (7,463 | ) | (6,943 | ) | |||
Maturities and redemptions of fixed maturities | 57,128 | 34,786 | |||||
Proceeds from sale of fixed maturities | 88,206 | 86,724 | |||||
Proceeds from sale of equity securities | 3,726 | 0 | |||||
Net cash used in investing activities | (47,105 | ) | (16,852 | ) | |||
Financing Activities: | |||||||
Proceeds from stock options exercised and employee stock purchases, including tax benefit | 201 | 350 | |||||
Principal payments under capital lease obligation | (145 | ) | 0 | ||||
Acquisition of treasury stock | (5,167 | ) | (7,037 | ) | |||
Dividends paid to shareholders | (3,453 | ) | (2,644 | ) | |||
Net cash used in financing activities | (8,564 | ) | (9,330 | ) | |||
Net (decrease) increase in cash and cash equivalents | (17,781 | ) | 8,020 | ||||
Cash and cash equivalents at beginning of period | 133,641 | 61,295 | |||||
Cash and cash equivalents at end of period | $ | 115,861 | $ | 69,314 |
Six months ended June 30, | |||||||
2013 | 2012 | ||||||
Operating Activities: | |||||||
Net earnings | $ | 16,070 | $ | 11,248 | |||
Adjustments: | |||||||
Depreciation | 4,053 | 4,086 | |||||
Amortization | 9,714 | 4,556 | |||||
Net realized gains on investments | (4,617 | ) | (2,405 | ) | |||
Loss on disposal of property and equipment | 0 | 15 | |||||
Share-based compensation expense | 2,087 | 2,146 | |||||
Activity related to rabbi trust | 25 | 35 | |||||
Decrease (increase) in accrued investment income | (858 | ) | (102 | ) | |||
Decrease (increase) in agents’ balances and premium receivable | (29,291 | ) | (44,463 | ) | |||
Decrease (increase) in reinsurance receivables | (1,088 | ) | (37 | ) | |||
Decrease (increase) in deferred policy acquisition costs | (4,017 | ) | (9,959 | ) | |||
Decrease (increase) in other assets | 4,478 | (5,319 | ) | ||||
Increase (decrease) in unpaid losses and loss adjustment expenses | 39,110 | 35,469 | |||||
Increase (decrease) in unearned premium | 43,653 | 61,575 | |||||
Increase (decrease) increase in payable to reinsurers | (137 | ) | (45 | ) | |||
Increase (decrease) in other liabilities | 205 | (997 | ) | ||||
Net cash provided by operating activities | 79,386 | 55,803 | |||||
Investing Activities: | |||||||
Purchases of fixed maturities | (490,415 | ) | (255,436 | ) | |||
Purchases of equity securities | (1,100 | ) | 0 | ||||
Purchases of short-term investments | (3,616 | ) | 0 | ||||
Purchases of property and equipment | (9,231 | ) | (7,585 | ) | |||
Maturities and redemptions of fixed maturities | 103,282 | 81,993 | |||||
Proceeds from sale of fixed maturities | 280,935 | 123,542 | |||||
Proceeds from sale of equity securities | 7,244 | 0 | |||||
Net cash used in investing activities | (112,901 | ) | (57,487 | ) | |||
Financing Activities: | |||||||
Proceeds from stock options exercised and employee stock purchases, including tax benefit | 728 | 833 | |||||
Principal payments under capital lease obligation | (449 | ) | 0 | ||||
Acquisition of treasury stock | (9,157 | ) | (8,303 | ) | |||
Dividends paid to shareholders | (6,928 | ) | (5,300 | ) | |||
Net cash used in financing activities | (15,806 | ) | (12,770 | ) | |||
Net decrease in cash and cash equivalents | (49,321 | ) | (14,453 | ) | |||
Cash and cash equivalents at beginning of period | 165,182 | 83,767 | |||||
Cash and cash equivalents at end of period | $ | 115,861 | $ | 69,314 |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Net earnings | $ | 7,408 | $ | 6,954 | $ | 16,070 | $ | 11,248 | |||||||
Average basic shares outstanding | 11,448 | 11,709 | 11,485 | 11,719 | |||||||||||
Basic net earnings per share | $ | 0.65 | $ | 0.59 | $ | 1.40 | $ | 0.96 | |||||||
Average basic shares outstanding | 11,448 | 11,709 | 11,485 | 11,719 | |||||||||||
Restricted stock not yet vested | 47 | 23 | 45 | 22 | |||||||||||
Dilutive effect of assumed option exercises | 31 | 99 | 34 | 105 | |||||||||||
Dilutive effect of Performance Share Plan | 117 | 106 | 135 | 148 | |||||||||||
Average diluted shares outstanding | 11,643 | 11,937 | 11,698 | 11,993 | |||||||||||
Diluted net earnings per share | $ | 0.64 | $ | 0.58 | $ | 1.37 | $ | 0.94 |
(i) | quoted prices in active markets for identical assets (Level 1), |
(ii) | quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-derived valuations in which all significant inputs are observable in active markets (Level 2) or |
(iii) | valuations derived from valuation techniques in which one or more significant inputs are unobservable in the marketplace (Level 3). |
Fair Value | ||||||||||||||||
June 30, 2013 | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Cash and cash equivalents | $ | 115,861 | $ | 0 | $ | 0 | $ | 115,861 | ||||||||
Fixed maturity securities: | ||||||||||||||||
U.S. government | 75,897 | 227 | 3,124 | 79,248 | ||||||||||||
Government-sponsored entities | 0 | 13,613 | 0 | 13,613 | ||||||||||||
State and municipal | 0 | 458,522 | 0 | 458,522 | ||||||||||||
Mortgage-backed securities: | ||||||||||||||||
Residential | 0 | 284,338 | 0 | 284,338 | ||||||||||||
Commercial | 0 | 38,828 | 0 | 38,828 | ||||||||||||
Total mortgage-backed securities | $ | 0 | $ | 323,166 | $ | 0 | $ | 323,166 | ||||||||
Collateralized mortgage obligations | 0 | 11,647 | 0 | 11,647 | ||||||||||||
Asset-backed securities | 0 | 63,833 | 0 | 63,833 | ||||||||||||
Corporates | 0 | 365,254 | 8,055 | 373,308 | ||||||||||||
Total fixed maturities | $ | 75,897 | $ | 1,236,260 | $ | 11,179 | $ | 1,323,336 | ||||||||
Equity securities | 70,077 | 0 | 0 | 70,077 | ||||||||||||
Short-term investments | $ | 3,616 | $ | 0 | $ | 0 | $ | 3,616 | ||||||||
Total cash and investments | $ | 265,451 | $ | 1,236,260 | $ | 11,179 | $ | 1,512,890 | ||||||||
Percentage of total cash and investments | 17.5 | % | 81.7 | % | 0.7 | % | 100.0 | % | ||||||||
Fair Value | ||||||||||||||||
December 31, 2012 | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Cash and cash equivalents | $ | 165,182 | $ | 0 | $ | 0 | $ | 165,182 | ||||||||
Fixed maturity securities: | ||||||||||||||||
U.S. government | 81,529 | 296 | 3,712 | 85,537 | ||||||||||||
Government-sponsored entities | 0 | 22,140 | 0 | 22,140 | ||||||||||||
State and municipal | 0 | 457,113 | 0 | 457,113 | ||||||||||||
Mortgage-backed securities: | ||||||||||||||||
Residential | 0 | 281,907 | 0 | 281,907 | ||||||||||||
Commercial | 0 | 13,768 | 0 | 13,768 | ||||||||||||
Total mortgage-backed securities | $ | 0 | $ | 295,675 | $ | 0 | $ | 295,675 | ||||||||
Collateralized mortgage obligations | 0 | 19,307 | 0 | 19,307 | ||||||||||||
Asset-backed securities | 0 | 79,257 | 0 | 79,257 | ||||||||||||
Corporates | 0 | 353,697 | 9,101 | 362,797 | ||||||||||||
Total fixed maturities | $ | 81,529 | $ | 1,227,486 | $ | 12,813 | $ | 1,321,828 | ||||||||
Equity securities | 73,106 | 0 | 0 | 73,106 | ||||||||||||
Total cash and investments | $ | 319,817 | $ | 1,227,486 | $ | 12,813 | $ | 1,560,116 | ||||||||
Percentage of total cash and investments | 20.5 | % | 78.7 | % | 0.8 | % | 100.0 | % |
Three months ended June 30, 2013 | |||||||||||||||||||||||||||
U.S. Government | State and Municipal | Mortgage- Backed Securities | Collateralized Mortgage Obligations | Corporates | ABS | Total | |||||||||||||||||||||
Balance at beginning of period | $ | 3,115 | $ | 0 | $ | 0 | $ | 0 | $ | 8,899 | $ | 0 | $ | 12,014 | |||||||||||||
Total gains or (losses), unrealized or realized | |||||||||||||||||||||||||||
Included in net earnings | (9 | ) | 0 | 0 | 0 | 350 | 0 | 341 | |||||||||||||||||||
Included in other comprehensive income | 18 | 0 | 0 | 0 | (216 | ) | 0 | (198 | ) | ||||||||||||||||||
Settlements | 0 | 0 | 0 | 0 | (979 | ) | 0 | (979 | ) | ||||||||||||||||||
Balance at end of period | $ | 3,124 | $ | 0 | $ | 0 | $ | 0 | $ | 8,055 | $ | 0 | $ | 11,179 | |||||||||||||
Three months ended June 30, 2012 | |||||||||||||||||||||||||||
U.S. Government | State and Municipal | Mortgage- Backed Securities | Collateralized Mortgage Obligations | Corporates | ABS | Total | |||||||||||||||||||||
Balance at beginning of period | $ | 3,897 | $ | 0 | $ | 0 | $ | 499 | $ | 9,644 | $ | 0 | $ | 14,040 | |||||||||||||
Total gains or (losses), unrealized or realized | |||||||||||||||||||||||||||
Included in net earnings | (39 | ) | (15 | ) | 0 | 0 | 181 | 0 | 128 | ||||||||||||||||||
Included in other comprehensive income | 41 | (16 | ) | 32 | 1 | 86 | 1 | 146 | |||||||||||||||||||
Purchases | 0 | 0 | 7,156 | 0 | 0 | 1,360 | 8,516 | ||||||||||||||||||||
Settlements | 0 | 0 | 0 | (14 | ) | (915 | ) | 0 | (929 | ) | |||||||||||||||||
Transfers in | 0 | 2,781 | 0 | 0 | 969 | 0 | 3,749 | ||||||||||||||||||||
Balance at end of period | $ | 3,899 | $ | 2,750 | $ | 7,188 | $ | 486 | $ | 9,966 | $ | 1,361 | $ | 25,651 |
Six months ended June 30, 2013 | |||||||||||||||||||||||||||
U.S. Government | State and Municipal | Mortgage- Backed Securities | Collateralized Mortgage Obligations | Corporates | ABS | Total | |||||||||||||||||||||
Balance at beginning of period | $ | 3,712 | $ | 0 | $ | 0 | $ | 0 | $ | 9,101 | $ | 0 | $ | 12,813 | |||||||||||||
Total gains or (losses), unrealized or realized | |||||||||||||||||||||||||||
Included in net earnings | (31 | ) | 0 | 0 | 0 | 472 | 0 | 441 | |||||||||||||||||||
Included in other comprehensive income | (71 | ) | 0 | 0 | 0 | (321 | ) | 0 | (393 | ) | |||||||||||||||||
Settlements | (485 | ) | 0 | 0 | 0 | (1,197 | ) | 0 | (1,682 | ) | |||||||||||||||||
Balance at end of period | $ | 3,124 | $ | 0 | $ | 0 | $ | 0 | $ | 8,055 | $ | 0 | $ | 11,179 | |||||||||||||
Six months ended June 30, 2012 | |||||||||||||||||||||||||||
U.S. Government | State and Municipal | Mortgage- Backed Securities | Collateralized Mortgage Obligations | Corporates | ABS | Total | |||||||||||||||||||||
Balance at beginning of period | $ | 4,438 | $ | 0 | $ | 0 | $ | 509 | $ | 10,426 | $ | 0 | $ | 15,374 | |||||||||||||
Total gains or (losses), unrealized or realized | |||||||||||||||||||||||||||
Included in net earnings | (70 | ) | (15 | ) | 0 | 0 | 62 | 0 | (22 | ) | |||||||||||||||||
Included in other comprehensive income | (13 | ) | (16 | ) | 32 | 4 | 233 | 1 | 241 | ||||||||||||||||||
Purchases | 0 | 0 | 7,156 | 0 | 0 | 1,360 | 8,516 | ||||||||||||||||||||
Sales | 0 | 0 | 0 | 0 | (253 | ) | 0 | (253 | ) | ||||||||||||||||||
Settlements | (456 | ) | 0 | 0 | (26 | ) | (1,268 | ) | 0 | (1,751 | ) | ||||||||||||||||
Transfers in | 0 | 2,781 | 0 | 0 | 1,836 | 0 | 4,617 | ||||||||||||||||||||
Transfers out | 0 | 0 | 0 | 0 | (1,070 | ) | 0 | (1,070 | ) | ||||||||||||||||||
Balance at end of period | $ | 3,899 | $ | 2,750 | $ | 7,188 | $ | 486 | $ | 9,966 | $ | 1,361 | $ | 25,651 |
Fair Value | Valuation Technique | Unobservable Input | Value Used | ||||||
Corporate bond | $ | 0.1 | Recovery rate1 | Probability of default | 100% | ||||
Corporate bond | 0.6 | Discounted cash flow | Comparable credit rating2 | CCC | |||||
Total | $ | 0.7 | |||||||
1 Recovery rate for senior unsecured bonds as indicated in Moody's Investor's Service Annual Default Study: Corporate Default and Recovery Rates, 1920-2012. | |||||||||
2 This bond is not rated, but is supported by JC Penney Corporation trust assets; therefore a JC Penney comparable bond rating is used. |
June 30, 2013 | December 31, 2012 | ||||||||||||||
Carrying Value | Fair Value | Carrying Value | Fair Value | ||||||||||||
Assets: | |||||||||||||||
Cash and cash equivalents | $ | 115,861 | $ | 115,861 | $ | 165,182 | $ | 165,182 | |||||||
Investments | |||||||||||||||
Fixed maturities | 1,323,336 | 1,323,336 | 1,321,828 | 1,321,828 | |||||||||||
Equity securities | 70,077 | 70,077 | 73,106 | 73,106 | |||||||||||
Short-term | $ | 3,616 | $ | 3,616 | $ | 0 | $ | 0 | |||||||
Total cash and investments | $ | 1,512,890 | $ | 1,512,890 | $ | 1,560,116 | $ | 1,560,116 | |||||||
Liabilities: | |||||||||||||||
Long-term debt | $ | 275,000 | $ | 272,767 | $ | 275,000 | $ | 288,879 |
June 30, 2013 | |||||||||||||||||||
Amortized Cost or Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | OTTI Recognized in Accumulated OCI(1) | |||||||||||||||
Fixed maturities: | |||||||||||||||||||
U.S. government | $ | 78,253 | $ | 1,560 | $ | (565 | ) | $ | 79,248 | $ | 0 | ||||||||
Government-sponsored entities | 13,332 | 280 | 0 | 13,613 | 0 | ||||||||||||||
State and municipal | 449,547 | 11,251 | (2,276 | ) | 458,522 | (53 | ) | ||||||||||||
Mortgage-backed securities: | |||||||||||||||||||
Residential | 287,232 | 2,658 | (5,552 | ) | 284,338 | (424 | ) | ||||||||||||
Commercial | 39,136 | 394 | (702 | ) | 38,828 | 0 | |||||||||||||
Total mortgage-backed securities | $ | 326,368 | $ | 3,052 | $ | (6,254 | ) | $ | 323,166 | $ | (424 | ) | |||||||
Collateralized mortgage obligations | 11,326 | 324 | (4 | ) | 11,647 | (193 | ) | ||||||||||||
Asset-backed securities | 63,993 | 121 | (281 | ) | 63,833 | (8 | ) | ||||||||||||
Corporates | 371,025 | 8,109 | (5,826 | ) | 373,308 | (637 | ) | ||||||||||||
Total fixed maturities | $ | 1,313,845 | $ | 24,697 | $ | (15,206 | ) | $ | 1,323,336 | $ | (1,316 | ) | |||||||
Equity securities | 64,604 | 5,473 | 0 | 70,077 | 0 | ||||||||||||||
Short-term investments | 3,617 | 0 | 0 | 3,616 | 0 | ||||||||||||||
Total | $ | 1,382,065 | $ | 30,170 | $ | (15,206 | ) | $ | 1,397,029 | $ | (1,316 | ) | |||||||
December 31, 2012 | |||||||||||||||||||
Amortized Cost or Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | OTTI Recognized in Accumulated OCI(1) | |||||||||||||||
Fixed maturities: | |||||||||||||||||||
U.S. government | $ | 83,320 | $ | 2,225 | $ | (8 | ) | $ | 85,537 | $ | 0 | ||||||||
Government-sponsored entities | 21,401 | 740 | 0 | 22,140 | 0 | ||||||||||||||
State and municipal | 438,367 | 19,109 | (364 | ) | 457,113 | (53 | ) | ||||||||||||
Mortgage-backed securities: | |||||||||||||||||||
Residential | 275,668 | 6,511 | (272 | ) | 281,907 | (292 | ) | ||||||||||||
Commercial | 13,023 | 749 | (3 | ) | 13,768 | 0 | |||||||||||||
Total mortgage-backed securities | $ | 288,691 | $ | 7,259 | $ | (275 | ) | $ | 295,675 | $ | (292 | ) | |||||||
Collateralized mortgage obligations | 18,847 | 469 | (9 | ) | 19,307 | (244 | ) | ||||||||||||
Asset-backed securities | 78,931 | 435 | (109 | ) | 79,257 | (51 | ) | ||||||||||||
Corporates | 348,494 | 14,807 | (503 | ) | 362,797 | (972 | ) | ||||||||||||
Total fixed maturities | $ | 1,278,051 | $ | 45,045 | $ | (1,268 | ) | $ | 1,321,828 | $ | (1,612 | ) | |||||||
Equity securities | 69,992 | 3,115 | 0 | 73,106 | 0 | ||||||||||||||
Total | $ | 1,348,042 | $ | 48,160 | $ | (1,268 | ) | $ | 1,394,934 | $ | (1,612 | ) | |||||||
(1) The total non-credit portion of OTTI recognized in Accumulated OCI reflecting the original non-credit loss at the time the credit impairment was determined. |
Less than 12 Months | 12 Months or More | |||||||||||||||||||||||||
Number of Securities with Unrealized Losses | Fair Value | Gross Unrealized Losses | Unrealized Losses as % of Cost | Number of Securities with Unrealized Losses | Fair Value | Gross Unrealized Losses | Unrealized Losses as % of Cost | |||||||||||||||||||
June 30, 2013 | ||||||||||||||||||||||||||
Fixed maturities: | ||||||||||||||||||||||||||
U.S. government | 13 | $ | 33,778 | $ | (565 | ) | 1.6 | % | 0 | $ | 0 | $ | 0 | 0.0 | % | |||||||||||
Government-sponsored entities | 0 | 0 | 0 | 0.0 | % | 0 | 0 | 0 | 0.0 | % | ||||||||||||||||
State and municipal | 58 | 118,593 | (2,267 | ) | 1.9 | % | 2 | 869 | (9 | ) | 1.1 | % | ||||||||||||||
Mortgage-backed securities: | ||||||||||||||||||||||||||
Residential | 167 | 204,532 | (5,552 | ) | 2.6 | % | 0 | 0 | 0 | 0.0 | % | |||||||||||||||
Commercial | 13 | 26,772 | (698 | ) | 2.5 | % | 2 | 235 | (3 | ) | 1.5 | % | ||||||||||||||
Total mortgage-backed securities | 180 | $ | 231,304 | $ | (6,250 | ) | 2.6 | % | 2 | $ | 235 | $ | (3 | ) | 1.5 | % | ||||||||||
Collateralized mortgage obligations | 3 | 641 | (3 | ) | 0.4 | % | 1 | 431 | (1 | ) | 0.3 | % | ||||||||||||||
Asset-backed securities | 34 | 35,517 | (280 | ) | 0.8 | % | 2 | 84 | (1 | ) | 1.5 | % | ||||||||||||||
Corporates | 145 | 170,693 | (5,814 | ) | 3.3 | % | 1 | 885 | (12 | ) | 1.3 | % | ||||||||||||||
Total fixed maturities | 433 | $ | 590,527 | $ | (15,179 | ) | 2.5 | % | 8 | $ | 2,505 | $ | (27 | ) | 1.1 | % | ||||||||||
Equity securities | 0 | 0 | 0 | 0.0 | % | 0 | 0 | 0 | 0.0 | % | ||||||||||||||||
Short-term investments | 1 | 3,616 | 0 | 0.0 | % | 0 | 0 | 0 | 0.0 | % | ||||||||||||||||
Total | 434 | $ | 594,143 | $ | (15,179 | ) | 2.5 | % | 8 | $ | 2,505 | $ | (27 | ) | 1.1 | % |
Less than 12 Months | 12 Months or More | ||||||||||||||||||||||||||
Number of Securities with Unrealized Losses | Fair Value | Gross Unrealized Losses | Unrealized Losses as % of Cost | Number of Securities with Unrealized Losses | Fair Value | Gross Unrealized Losses | Unrealized Losses as % of Cost | ||||||||||||||||||||
December 31, 2012 | |||||||||||||||||||||||||||
Fixed maturities: | |||||||||||||||||||||||||||
U.S. government | 3 | $ | 11,758 | $ | (8 | ) | 0.1 | % | 0 | $ | 0 | $ | 0 | 0.0 | % | ||||||||||||
Government-sponsored entities | 0 | 0 | 0 | 0.0 | % | 0 | 0 | 0 | 0.0 | % | |||||||||||||||||
State and municipal | 32 | 52,399 | (364 | ) | 0.7 | % | 0 | 0 | 0 | 0.0 | % | ||||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||||||||
Residential | 42 | 75,927 | (272 | ) | 0.4 | % | 0 | 0 | 0 | 0.0 | % | ||||||||||||||||
Commercial | 1 | 73 | 0 | 0.6 | % | 1 | 259 | (3 | ) | 1.1 | % | ||||||||||||||||
Total mortgage-backed securities | 43 | $ | 76,000 | $ | (272 | ) | 0.4 | % | 1 | $ | 259 | $ | (3 | ) | 1.1 | % | |||||||||||
Collateralized mortgage obligations | 2 | 1,264 | (9 | ) | 0.7 | % | 0 | 0 | 0 | 0.0 | % | ||||||||||||||||
Asset-backed securities | 6 | 11,941 | (57 | ) | 0.5 | % | 2 | 6,138 | (52 | ) | 0.8 | % | |||||||||||||||
Corporates | 58 | 70,540 | (503 | ) | 0.7 | % | 0 | 0 | 0 | 0.0 | % | ||||||||||||||||
Total fixed maturities | 144 | $ | 223,903 | $ | (1,213 | ) | 0.5 | % | 3 | $ | 6,397 | $ | (55 | ) | 0.8 | % | |||||||||||
Equity securities | 0 | 0 | 0 | 0.0 | % | 0 | 0 | 0 | 0.0 | % | |||||||||||||||||
Total | 144 | $ | 223,903 | $ | (1,213 | ) | 0.5 | % | 3 | $ | 6,397 | $ | (55 | ) | 0.8 | % |
• | the intent to sell the security; |
• | whether it is more likely than not that there will be a requirement to sell the security before our anticipated recovery; |
• | whether the unrealized loss is credit-driven or a result of changes in market interest rates; |
• | the length of time the security’s fair value has been below our cost; |
• | the extent to which fair value is less than cost basis; |
• | historical operating, balance sheet and cash flow data contained in issuer SEC filings; |
• | issuer news releases; |
• | near-term prospects for improvement in the issuer and/or its industry; |
• | industry research and communications with industry specialists and |
• | third-party research and credit rating reports. |
June 30, 2013 | December 31, 2012 | ||||
Number of positions held with unrealized: | |||||
Gains | 513 | 749 | |||
Losses | 442 | 147 | |||
Number of positions held that individually exceed unrealized: | |||||
Gains of $500,000 | 2 | 3 | |||
Losses of $500,000 | 0 | 0 | |||
Percentage of positions held with unrealized: | |||||
Gains that were investment grade | 82 | % | 81 | % | |
Losses that were investment grade | 86 | % | 86 | % | |
Percentage of fair value held with unrealized: | |||||
Gains that were investment grade | 92 | % | 92 | % | |
Losses that were investment grade | 90 | % | 93 | % |
Age of Unrealized Losses: | Fair Value of Securities with Unrealized Losses | Total Gross Unrealized Losses | Less Than 5%* | 5% - 10%* | Greater Than 10%* | ||||||||||||||
Three months or less | $ | 502,170 | $ | (12,491 | ) | $ | (8,250 | ) | $ | (4,020 | ) | $ | (221 | ) | |||||
Four months through six months | 48,306 | (1,365 | ) | (1,077 | ) | (288 | ) | 0 | |||||||||||
Seven months through nine months | 43,667 | (1,324 | ) | (676 | ) | (648 | ) | 0 | |||||||||||
Ten months through twelve months | 73 | 0 | 0 | 0 | 0 | ||||||||||||||
Greater than twelve months | 2,432 | (27 | ) | (27 | ) | 0 | 0 | ||||||||||||
Total | $ | 596,648 | $ | (15,206 | ) | $ | (10,029 | ) | $ | (4,956 | ) | $ | (221 | ) |
Pre-tax | |||||||||||||||
Fixed Maturities | Equity Securities | Tax Effects | Net | ||||||||||||
Six months ended June 30, 2013 | |||||||||||||||
Unrealized holding gains (losses) on securities arising during the period | $ | (30,328 | ) | $ | 3,018 | $ | 9,558 | $ | (17,751 | ) | |||||
Realized (gains) losses on securities sold | (4,329 | ) | (660 | ) | 1,746 | (3,242 | ) | ||||||||
Impairment loss recognized in earnings | 371 | 0 | (130 | ) | 241 | ||||||||||
Change in unrealized gains (losses) on marketable securities, net | $ | (34,286 | ) | $ | 2,358 | $ | 11,175 | $ | (20,753 | ) | |||||
Six months ended June 30, 2012 | |||||||||||||||
Unrealized holding gains (losses) on securities arising during the period | $ | 7,053 | $ | 3,065 | $ | (3,541 | ) | $ | 6,577 | ||||||
Realized (gains) losses on securities sold | (3,470 | ) | 0 | 1,214 | (2,255 | ) | |||||||||
Impairment loss recognized in earnings | 1,065 | 0 | (373 | ) | 692 | ||||||||||
Change in unrealized gains (losses) on marketable securities, net | $ | 4,649 | $ | 3,065 | $ | (2,700 | ) | $ | 5,014 |
Six months ended June 30, | |||||||
2013 | 2012 | ||||||
Beginning balance | $ | 487 | $ | 1,728 | |||
Additions for: | |||||||
Newly impaired securities | 48 | 9 | |||||
Reductions for: | |||||||
Securities sold and paid down | (164 | ) | (296 | ) | |||
Securities that no longer have a non-credit component | 0 | (735 | ) | ||||
Ending balance | $ | 371 | $ | 706 |
Fair Value | Amortized Cost | ||||||||||||||||||
Maturity | Securities with Unrealized Gains | Securities with Unrealized Losses | Securities with No Unrealized Gains or Losses | All Fixed Maturity Securities | All Fixed Maturity Securities | ||||||||||||||
One year or less | $ | 40,166 | $ | 869 | $ | 4,097 | $ | 45,133 | $ | 44,822 | |||||||||
After one year through five years | 390,059 | 157,525 | 6,685 | 554,270 | 543,201 | ||||||||||||||
After five years through ten years | 136,052 | 153,831 | 1,594 | 291,477 | 290,646 | ||||||||||||||
After ten years | 20,618 | 12,593 | 600 | 33,811 | 33,489 | ||||||||||||||
Mortgage-backed, asset-backed and collateralized mortgage obligations | 130,433 | 268,213 | 0 | 398,645 | 401,687 | ||||||||||||||
Total | $ | 717,328 | $ | 593,032 | $ | 12,976 | $ | 1,323,336 | $ | 1,313,845 |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Earnings before income taxes | $ | 10,129 | $ | 9,323 | $ | 22,234 | $ | 14,845 | |||||||
Income taxes at statutory rates | $ | 3,545 | $ | 3,263 | $ | 7,782 | $ | 5,196 | |||||||
Effect of: | |||||||||||||||
Dividends-received deduction | (130 | ) | (42 | ) | (179 | ) | (79 | ) | |||||||
Tax-exempt interest | (716 | ) | (814 | ) | (1,465 | ) | (1,644 | ) | |||||||
Adjustment to valuation allowance | 0 | (80 | ) | 0 | 80 | ||||||||||
Other | 22 | 41 | 27 | 44 | |||||||||||
Provision for income taxes | $ | 2,721 | $ | 2,369 | $ | 6,164 | $ | 3,597 | |||||||
GAAP effective tax rate | 26.9 | % | 25.4 | % | 27.7 | % | 24.2 | % |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Income tax payments | $ | 0 | $ | 5,000 | $ | 0 | $ | 5,000 | |||||||
Interest payments on debt | 0 | 0 | 6,951 | 5,363 |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Balance at Beginning of Period | |||||||||||||||
Unpaid losses on known claims | $ | 218,835 | $ | 194,048 | $ | 205,589 | $ | 181,972 | |||||||
IBNR losses | 223,898 | 179,343 | 218,552 | 177,645 | |||||||||||
LAE | 154,068 | 140,539 | 148,753 | 135,787 | |||||||||||
Total unpaid losses and LAE | 596,800 | 513,930 | 572,894 | 495,403 | |||||||||||
Reinsurance recoverables | (13,793 | ) | (15,704 | ) | (13,678 | ) | (14,640 | ) | |||||||
Unpaid losses and LAE, net of reinsurance recoverables | 583,008 | 498,226 | 559,215 | 480,764 | |||||||||||
Current Activity | |||||||||||||||
Loss and LAE incurred: | |||||||||||||||
Current accident year | 255,650 | 229,014 | 506,149 | 443,882 | |||||||||||
Prior accident years | 1,428 | 1,893 | 1,300 | 1,803 | |||||||||||
Total loss and LAE incurred | 257,079 | 230,907 | 507,449 | 445,685 | |||||||||||
Loss and LAE payments: | |||||||||||||||
Current accident year | (150,335 | ) | (133,255 | ) | (228,191 | ) | (202,517 | ) | |||||||
Prior accident years | (91,567 | ) | (78,804 | ) | (240,290 | ) | (206,858 | ) | |||||||
Total loss and LAE payments | (241,902 | ) | (212,059 | ) | (468,480 | ) | (409,375 | ) | |||||||
Balance at End of Period | |||||||||||||||
Unpaid losses and LAE, net of reinsurance recoverables | 598,184 | 517,074 | 598,184 | 517,074 | |||||||||||
Add back reinsurance recoverables | 13,819 | 13,798 | 13,819 | 13,798 | |||||||||||
Total unpaid losses and LAE | $ | 612,004 | $ | 530,872 | $ | 612,004 | $ | 530,872 | |||||||
Unpaid losses on known claims | $ | 222,138 | $ | 202,622 | $ | 222,138 | $ | 202,622 | |||||||
IBNR losses | 232,546 | 182,630 | 232,546 | 182,630 | |||||||||||
LAE | 157,320 | 145,620 | 157,320 | 145,620 | |||||||||||
Total unpaid losses and LAE | $ | 612,004 | $ | 530,872 | $ | 612,004 | $ | 530,872 |
Three months ended June 30, | ||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||
Before Tax | Income Tax | Net | Before Tax | Income Tax | Net | |||||||||||||||||||
Accumulated change in postretirement benefit liability, beginning of period | $ | (918 | ) | $ | 321 | $ | (596 | ) | $ | 513 | $ | (180 | ) | $ | 334 | |||||||||
Effect on other comprehensive income | 50 | (17 | ) | 32 | (6 | ) | 2 | (4 | ) | |||||||||||||||
Accumulated change in postretirement benefit liability, end of period | $ | (868 | ) | $ | 304 | $ | (564 | ) | $ | 508 | $ | (178 | ) | $ | 330 | |||||||||
Accumulated unrealized gains on investments, net, beginning of period | $ | 45,756 | $ | (16,015 | ) | $ | 29,741 | $ | 60,242 | $ | (21,085 | ) | $ | 39,158 | ||||||||||
Other comprehensive income before reclassification | (29,998 | ) | 10,499 | (19,499 | ) | 3,455 | (1,209 | ) | 2,246 | |||||||||||||||
Reclassification adjustment for other-than-temporary impairments included in net income | 299 | (105 | ) | 194 | 418 | (146 | ) | 271 | ||||||||||||||||
Reclassification adjustment for realized gains included in net income | (1,093 | ) | 382 | (710 | ) | (2,584 | ) | 904 | (1,680 | ) | ||||||||||||||
Effect on other comprehensive income | (30,792 | ) | 10,777 | (20,015 | ) | 1,289 | (451 | ) | 837 | |||||||||||||||
Accumulated unrealized gains on investments, net, end of period | $ | 14,964 | $ | (5,237 | ) | $ | 9,727 | $ | 61,531 | $ | (21,536 | ) | $ | 39,995 | ||||||||||
Accumulated other comprehensive income, beginning of period | $ | 44,838 | $ | (15,693 | ) | $ | 29,145 | $ | 60,756 | $ | (21,265 | ) | $ | 39,491 | ||||||||||
Change in postretirement benefit liability | 50 | (17 | ) | 32 | (6 | ) | 2 | (4 | ) | |||||||||||||||
Change in unrealized gains on investments, net | (30,792 | ) | 10,777 | (20,015 | ) | 1,289 | (451 | ) | 837 | |||||||||||||||
Effect on other comprehensive income | (30,742 | ) | 10,760 | (19,982 | ) | 1,283 | (449 | ) | 834 | |||||||||||||||
Accumulated other comprehensive income, end of period | $ | 14,096 | $ | (4,934 | ) | $ | 9,163 | $ | 62,039 | $ | (21,714 | ) | $ | 40,325 |
Six months ended June 30, | ||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||
Before Tax | Income Tax | Net | Before Tax | Income Tax | Net | |||||||||||||||||||
Accumulated change in postretirement benefit liability, beginning of period | $ | (967 | ) | $ | 339 | $ | (629 | ) | $ | 519 | $ | (182 | ) | $ | 337 | |||||||||
Effect on other comprehensive income | 100 | (35 | ) | 65 | (11 | ) | 4 | (7 | ) | |||||||||||||||
Accumulated change in postretirement benefit liability, end of period | $ | (868 | ) | $ | 304 | $ | (564 | ) | $ | 508 | $ | (178 | ) | $ | 330 | |||||||||
Accumulated unrealized gains on investments, net, beginning of period | $ | 46,892 | $ | (16,412 | ) | $ | 30,480 | $ | 53,817 | $ | (18,836 | ) | $ | 34,981 | ||||||||||
Other comprehensive income before reclassification | (27,310 | ) | 9,559 | (17,752 | ) | 10,118 | (3,541 | ) | 6,577 | |||||||||||||||
Reclassification adjustment for other-than-temporary impairments included in net income | 371 | (130 | ) | 241 | 1,065 | (373 | ) | 692 | ||||||||||||||||
Reclassification adjustment for realized gains included in net income | (4,988 | ) | 1,746 | (3,242 | ) | (3,470 | ) | 1,215 | (2,256 | ) | ||||||||||||||
Effect on other comprehensive income | (31,928 | ) | 11,175 | (20,753 | ) | 7,713 | (2,700 | ) | 5,014 | |||||||||||||||
Accumulated unrealized gains on investments, net, end of period | $ | 14,964 | $ | (5,237 | ) | $ | 9,727 | $ | 61,531 | $ | (21,536 | ) | $ | 39,995 | ||||||||||
Accumulated other comprehensive income, beginning of period | $ | 45,924 | $ | (16,073 | ) | $ | 29,851 | $ | 54,336 | $ | (19,018 | ) | $ | 35,319 | ||||||||||
Change in postretirement benefit liability | 100 | (35 | ) | 65 | (11 | ) | 4 | (7 | ) | |||||||||||||||
Change in unrealized gains on investments, net | (31,928 | ) | 11,175 | (20,753 | ) | 7,713 | (2,700 | ) | 5,014 | |||||||||||||||
Effect on other comprehensive income | (31,828 | ) | 11,140 | (20,688 | ) | 7,702 | (2,696 | ) | 5,006 | |||||||||||||||
Accumulated other comprehensive income, end of period | $ | 14,096 | $ | (4,934 | ) | $ | 9,163 | $ | 62,039 | $ | (21,714 | ) | $ | 40,325 |
Accident Year Combined Ratio Developed Through | Prior Accident Year Favorable / (Unfavorable) Development | ($ in millions) Prior Accident Year Favorable / (Unfavorable) Development | |||||||||||||||||||||||||||||
Accident Year | Mar 2012 | Jun 2012 | Sept 2012 | Dec 2012 | Mar 2013 | June 2013 | Q2 2013 | YTD 2013 | Q2 2013 | YTD 2013 | |||||||||||||||||||||
Prior | $ | (0.4 | ) | $ | (0.2 | ) | |||||||||||||||||||||||||
2005 | 87.8 | % | 87.8 | % | 87.8 | % | 87.8 | % | 87.7 | % | 87.7 | % | 0.0 | % | 0.1 | % | 0.0 | 0.6 | |||||||||||||
2006 | 90.3 | % | 90.3 | % | 90.3 | % | 90.4 | % | 90.3 | % | 90.3 | % | 0.0 | % | 0.1 | % | (0.1 | ) | 0.9 | ||||||||||||
2007 | 92.5 | % | 92.5 | % | 92.5 | % | 92.3 | % | 92.2 | % | 92.2 | % | 0.0 | % | 0.1 | % | 0.0 | 1.5 | |||||||||||||
2008 | 91.6 | % | 91.5 | % | 91.5 | % | 91.6 | % | 91.4 | % | 91.4 | % | 0.0 | % | 0.2 | % | 0.3 | 1.8 | |||||||||||||
2009 | 92.7 | % | 92.6 | % | 92.6 | % | 92.6 | % | 92.4 | % | 92.3 | % | 0.1 | % | 0.3 | % | 1.3 | 2.8 | |||||||||||||
2010 | 99.8 | % | 99.6 | % | 99.5 | % | 99.5 | % | 99.8 | % | 99.7 | % | 0.1 | % | (0.2 | )% | 0.9 | (1.9 | ) | ||||||||||||
2011 | 97.9 | % | 98.3 | % | 98.9 | % | 100.0 | % | 100.5 | % | 100.4 | % | 0.0 | % | (0.4 | )% | 0.5 | (4.5 | ) | ||||||||||||
2012 | 99.9 | % | 99.2 | % | 98.9 | % | 99.3 | % | 99.2 | % | 99.5 | % | (0.3 | )% | (0.2 | )% | (3.9 | ) | (2.3 | ) | |||||||||||
2013 YTD | 98.2 | % | 97.8 | % | |||||||||||||||||||||||||||
$ | (1.4 | ) | $ | (1.3 | ) |
• | “Focus States” – These states include Arizona, California, Florida, Georgia, Nevada, Pennsylvania and Texas. |
• | “Other States” – Include all other states where we are maintaining our writings. We believe each state offers us an opportunity for underwriting profit. |
Three months ended June 30, | ||||||||||||||
2013 | 2012 | Change | % Change | |||||||||||
Net earned premium | ||||||||||||||
Gross written premium | ||||||||||||||
Personal Auto | ||||||||||||||
Focus States | $ | 290,238 | $ | 258,224 | $ | 32,014 | 12.4 | % | ||||||
Other States | 7,006 | 8,872 | (1,867 | ) | (21.0 | )% | ||||||||
Total Personal Auto | 297,243 | 267,096 | 30,147 | 11.3 | % | |||||||||
Commercial Vehicle | 21,413 | 19,479 | 1,934 | 9.9 | % | |||||||||
Classic Collector | 4,056 | 3,793 | 263 | 6.9 | % | |||||||||
Total gross written premium | 322,712 | 290,368 | 32,345 | 11.1 | % | |||||||||
Ceded reinsurance | (2,535 | ) | (1,987 | ) | (548 | ) | 27.6 | % | ||||||
Net written premium | 320,177 | 288,380 | 31,797 | 11.0 | % | |||||||||
Change in unearned premium | 11,037 | 5,737 | 5,300 | 92.4 | % | |||||||||
Net earned premium | $ | 331,215 | $ | 294,118 | $ | 37,097 | 12.6 | % | ||||||
Six months ended June 30, | ||||||||||||||
2013 | 2012 | Change | % Change | |||||||||||
Net earned premium | ||||||||||||||
Gross written premium | ||||||||||||||
Personal Auto | ||||||||||||||
Focus States | $ | 633,359 | $ | 572,732 | $ | 60,627 | 10.6 | % | ||||||
Other States | 15,248 | 18,997 | (3,749 | ) | (19.7 | )% | ||||||||
Total Personal Auto | 648,607 | 591,729 | 56,878 | 9.6 | % | |||||||||
Commercial Vehicle | 42,671 | 38,264 | 4,407 | 11.5 | % | |||||||||
Classic Collector | 6,777 | 6,285 | 492 | 7.8 | % | |||||||||
Total gross written premium | 698,055 | 636,278 | 61,777 | 9.7 | % | |||||||||
Ceded reinsurance | (4,910 | ) | (3,739 | ) | (1,170 | ) | 31.3 | % | ||||||
Net written premium | 693,145 | 632,539 | 60,607 | 9.6 | % | |||||||||
Change in unearned premium | (43,342 | ) | (61,272 | ) | 17,931 | (29.3 | )% | |||||||
Net earned premium | $ | 649,804 | $ | 571,266 | $ | 78,537 | 13.7 | % |
At June 30, | |||||||||||
2013 | 2012 | Change | % Change | ||||||||
Policies in Force | |||||||||||
Personal Auto | |||||||||||
Focus States | 869,649 | 863,149 | 6,500 | 0.8 | % | ||||||
Other States | 25,123 | 30,734 | (5,611 | ) | (18.3 | )% | |||||
Total Personal Auto | 894,772 | 893,883 | 889 | 0.1 | % | ||||||
Commercial Vehicle | 40,800 | 37,979 | 2,821 | 7.4 | % | ||||||
Classic Collector | 38,828 | 37,014 | 1,814 | 4.9 | % | ||||||
Total policies in force | 974,400 | 968,876 | 5,524 | 0.6 | % |
Three months ended June 30, | ||||||||||||||||||||
2013 | 2012 | % Point Change | ||||||||||||||||||
Loss & LAE Ratio | Underwriting Ratio | Combined Ratio | Loss & LAE Ratio | Underwriting Ratio | Combined Ratio | Loss & LAE Ratio | Underwriting Ratio | Combined Ratio | ||||||||||||
Personal Auto: | ||||||||||||||||||||
Focus States | 78.1 | % | 17.7 | % | 95.8 | % | 79.1 | % | 17.9 | % | 97.0 | % | (1.0 | )% | (0.2 | )% | (1.2 | )% | ||
Other States | 73.8 | % | 20.5 | % | 94.3 | % | 92.2 | % | 21.3 | % | 113.5 | % | (18.4 | )% | (0.8 | )% | (19.2 | )% | ||
Total Personal Auto | 78.0 | % | 17.7 | % | 95.7 | % | 79.5 | % | 18.0 | % | 97.5 | % | (1.5 | )% | (0.2 | )% | (1.8 | )% | ||
Commercial Vehicle | 75.3 | % | 17.2 | % | 92.6 | % | 62.2 | % | 18.7 | % | 80.8 | % | 13.1 | % | (1.4 | )% | 11.7 | % | ||
Classic Collector | 56.1 | % | 32.6 | % | 88.7 | % | 75.2 | % | 34.0 | % | 109.2 | % | (19.1 | )% | (1.4 | )% | (20.5 | )% | ||
Total statutory ratios | 77.8 | % | 17.9 | % | 95.7 | % | 78.6 | % | 18.4 | % | 97.0 | % | (0.8 | )% | (0.5 | )% | (1.3 | )% | ||
Total statutory ratios excluding development | 80.9 | % | 17.9 | % | 98.8 | % | 79.5 | % | 18.4 | % | 97.9 | % | 1.4 | % | (0.5 | )% | 0.8 | % | ||
GAAP ratios | 77.6 | % | 20.2 | % | 97.8 | % | 78.5 | % | 20.7 | % | 99.2 | % | (0.9 | )% | (0.5 | )% | (1.4 | )% | ||
GAAP ratios excluding development | 80.7 | % | 20.2 | % | 100.9 | % | 79.4 | % | 20.7 | % | 100.1 | % | 1.3 | % | (0.5 | )% | 0.8 | % | ||
Six months ended June 30, | ||||||||||||||||||||
2013 | 2012 | % Point Change | ||||||||||||||||||
Loss & LAE Ratio | Underwriting Ratio | Combined Ratio | Loss & LAE Ratio | Underwriting Ratio | Combined Ratio | Loss & LAE Ratio | Underwriting Ratio | Combined Ratio | ||||||||||||
Personal Auto: | ||||||||||||||||||||
Focus States | 78.9 | % | 17.4 | % | 96.3 | % | 78.7 | % | 18.7 | % | 97.5 | % | 0.2 | % | (1.3 | )% | (1.1 | )% | ||
Other States | 78.1 | % | 21.4 | % | 99.5 | % | 80.5 | % | 21.9 | % | 102.5 | % | (2.5 | )% | (0.6 | )% | (3.0 | )% | ||
Total Personal Auto | 78.8 | % | 17.5 | % | 96.4 | % | 78.8 | % | 18.9 | % | 97.6 | % | 0.1 | % | (1.3 | )% | (1.2 | )% | ||
Commercial Vehicle | 73.0 | % | 16.6 | % | 89.6 | % | 66.5 | % | 18.1 | % | 84.6 | % | 6.5 | % | (1.5 | )% | 5.0 | % | ||
Classic Collector | 49.0 | % | 34.6 | % | 83.5 | % | 70.0 | % | 37.2 | % | 107.2 | % | (21.0 | )% | (2.6 | )% | (23.6 | )% | ||
Total statutory ratios | 78.2 | % | 17.7 | % | 95.9 | % | 78.1 | % | 19.1 | % | 97.3 | % | 0.1 | % | (1.5 | )% | (1.3 | )% | ||
Total statutory ratios excluding development | 78.0 | % | 17.7 | % | 95.7 | % | 77.7 | % | 19.1 | % | 96.8 | % | 0.3 | % | (1.5 | )% | (1.1 | )% | ||
GAAP ratios | 78.1 | % | 19.9 | % | 98.0 | % | 78.0 | % | 21.5 | % | 99.5 | % | 0.1 | % | (1.6 | )% | (1.5 | )% | ||
GAAP ratios excluding development | 77.9 | % | 19.9 | % | 97.8 | % | 77.7 | % | 21.5 | % | 99.2 | % | 0.2 | % | (1.6 | )% | (1.4 | )% |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Investment income: | |||||||||||||||
Interest income on fixed maturities, cash and cash equivalents | $ | 8,607 | $ | 9,856 | $ | 17,202 | $ | 19,943 | |||||||
Dividends on equity securities | 625 | 200 | 858 | 378 | |||||||||||
Gross investment income | $ | 9,232 | $ | 10,056 | $ | 18,060 | $ | 20,321 | |||||||
Investment expenses | (610 | ) | (456 | ) | (1,100 | ) | (975 | ) | |||||||
Net investment income | $ | 8,622 | $ | 9,600 | $ | 16,960 | $ | 19,346 | |||||||
Average investment balance, at cost | $ | 1,489,599 | $ | 1,247,028 | $ | 1,495,490 | $ | 1,241,196 | |||||||
Annualized returns excluding realized gains and losses | 2.3 | % | 3.1 | % | 2.3 | % | 3.1 | % | |||||||
Annualized returns including realized gains and losses | 2.5 | % | 3.8 | % | 2.9 | % | 3.5 | % |
Three months ended June 30, 2013 | Three months ended June 30, 2012 | ||||||||||||||||||||||
Impairments Recognized in Earnings | Net Realized Gains (Losses) on Sales | Total Realized Gains (Losses) | Impairments Recognized in Earnings | Net Realized Gains (Losses) on Sales | Total Realized Gains (Losses) | ||||||||||||||||||
Fixed maturities | $ | (299 | ) | $ | 807 | $ | 508 | $ | (418 | ) | $ | 2,584 | $ | 2,166 | |||||||||
Equities | 0 | 286 | 286 | 0 | 0 | 0 | |||||||||||||||||
Total | $ | (299 | ) | $ | 1,093 | $ | 794 | $ | (418 | ) | $ | 2,584 | $ | 2,166 | |||||||||
Six months ended June 30, 2013 | Six months ended June 30, 2012 | ||||||||||||||||||||||
Impairments Recognized in Earnings | Net Realized Gains (Losses) on Sales | Total Realized Gains (Losses) | Impairments Recognized in Earnings | Net Realized Gains (Losses) on Sales | Total Realized Gains (Losses) | ||||||||||||||||||
Fixed maturities | $ | (371 | ) | $ | 4,329 | $ | 3,958 | $ | (1,065 | ) | $ | 3,470 | $ | 2,405 | |||||||||
Equities | 0 | 660 | 660 | 0 | 0 | 0 | |||||||||||||||||
Total | $ | (371 | ) | $ | 4,988 | $ | 4,617 | $ | (1,065 | ) | $ | 3,470 | $ | 2,405 |
Amortized Cost | Fair Value | % of Total Fair Value | ||||||||
U.S. government and agencies: | ||||||||||
U.S. government | $ | 78,253 | $ | 79,248 | 5.7 | % | ||||
Government-sponsored entities | 13,332 | 13,613 | 1.0 | % | ||||||
Total U.S. government and agencies | 91,586 | 92,861 | 6.6 | % | ||||||
State and municipal | 449,547 | 458,522 | 32.8 | % | ||||||
Mortgage-backed, CMOs and asset-backed: | ||||||||||
Residential mortgage-backed securities | 287,232 | 284,338 | 20.4 | % | ||||||
Commercial mortgage-backed securities | 39,136 | 38,828 | 2.8 | % | ||||||
Collateralized mortgage obligations: | ||||||||||
PAC | 6,784 | 6,960 | 0.5 | % | ||||||
Sequentials | 3,601 | 3,706 | 0.3 | % | ||||||
Whole loan | 941 | 980 | 0.1 | % | ||||||
Total CMO | 11,326 | 11,647 | 0.8 | % | ||||||
Asset-backed securities: | ||||||||||
Auto loans | 47,333 | 47,279 | 3.4 | % | ||||||
Equipment leases | 5,850 | 5,845 | 0.4 | % | ||||||
Home equity | 505 | 498 | 0.0 | % | ||||||
Credit card receivables | 10,195 | 10,092 | 0.7 | % | ||||||
Miscellaneous | 110 | 118 | 0.0 | % | ||||||
Total ABS | 63,993 | 63,833 | 4.6 | % | ||||||
Total mortgage-backed, CMOs and asset-backed | 401,687 | 398,645 | 28.5 | % | ||||||
Corporates | ||||||||||
Investment grade | 251,682 | 253,053 | 18.1 | % | ||||||
Non-investment grade | 119,343 | 120,256 | 8.6 | % | ||||||
Total corporates | 371,025 | 373,308 | 26.7 | % | ||||||
Total fixed maturities | 1,313,845 | 1,323,336 | 94.7 | % | ||||||
Equity securities | 64,604 | 70,077 | 5.0 | % | ||||||
Short-term investments | 3,617 | 3,616 | 0.3 | % | ||||||
Total investments | $ | 1,382,065 | $ | 1,397,029 | 100.0 | % |
Rating | ||||||||||||||||||||||||||
AAA | AA | A | BBB | Non- investment Grade | Total Fair Value | % of Total Exposure | ||||||||||||||||||||
U.S. government and agencies | $ | 92,861 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 92,861 | 7.0 | % | ||||||||||||
State and municipal | 70,824 | 281,038 | 106,660 | 0 | 0 | 458,522 | 34.6 | % | ||||||||||||||||||
Mortgage-backed, asset-backed and CMO | 380,064 | 14,758 | 3,823 | 0 | 0 | 398,645 | 30.1 | % | ||||||||||||||||||
Corporates | 0 | 15,866 | 126,050 | 111,137 | 120,256 | 373,308 | 28.2 | % | ||||||||||||||||||
Total fair value | $ | 543,749 | $ | 311,662 | $ | 236,532 | $ | 111,137 | $ | 120,256 | $ | 1,323,336 | 100.0 | % | ||||||||||||
% of total fair value | 41.1 | % | 23.6 | % | 17.9 | % | 8.4 | % | 9.1 | % | 100.0 | % |
Rating | ||||||||||||||||||
State | AAA | AA | A | Total Fair Value | % of Total Exposure | |||||||||||||
NY | $ | 239 | $ | 39,477 | $ | 0 | $ | 39,716 | 8.7 | % | ||||||||
CA | 0 | 27,023 | 8,809 | $ | 35,833 | 7.8 | % | |||||||||||
TX | 11,250 | 13,882 | 7,827 | $ | 32,959 | 7.2 | % | |||||||||||
GA | 7,213 | 9,328 | 8,301 | $ | 24,843 | 5.4 | % | |||||||||||
FL | 0 | 15,051 | 9,141 | $ | 24,192 | 5.3 | % | |||||||||||
WA | 1,008 | 19,378 | 1,750 | $ | 22,135 | 4.8 | % | |||||||||||
MD | 14,195 | 7,550 | 0 | $ | 21,745 | 4.7 | % | |||||||||||
VA | 4,436 | 14,846 | 0 | $ | 19,282 | 4.2 | % | |||||||||||
UT | 4,878 | 4,609 | 7,594 | $ | 17,081 | 3.7 | % | |||||||||||
PA | 1,297 | 8,490 | 5,975 | $ | 15,762 | 3.4 | % | |||||||||||
All other states | 26,306 | 121,404 | 57,263 | $ | 204,973 | 44.7 | % | |||||||||||
Total fair value | $ | 70,824 | $ | 281,038 | $ | 106,660 | $ | 458,522 | 100.0 | % | ||||||||
% of total fair value | 15.4 | % | 61.3 | % | 23.3 | % | 100.0 | % |
Type | ||||||||||||||||||||||
General Obligation | ||||||||||||||||||||||
State | State | Local | Revenue | Other | Total Fair Value | % of Total Exposure | ||||||||||||||||
NY | $ | 0 | $ | 8,473 | $ | 31,243 | $ | 0 | $ | 39,716 | 8.7 | % | ||||||||||
CA | 8,995 | 4,041 | 22,797 | 0 | $ | 35,833 | 7.8 | % | ||||||||||||||
TX | 0 | 12,262 | 20,698 | 0 | $ | 32,959 | 7.2 | % | ||||||||||||||
GA | 7,213 | 1,137 | 16,493 | 0 | $ | 24,843 | 5.4 | % | ||||||||||||||
FL | 2,919 | 0 | 14,367 | 6,906 | $ | 24,192 | 5.3 | % | ||||||||||||||
WA | 4,096 | 3,124 | 14,915 | 0 | $ | 22,135 | 4.8 | % | ||||||||||||||
MD | 7,854 | 6,341 | 7,550 | 0 | $ | 21,745 | 4.7 | % | ||||||||||||||
VA | 1,065 | 6,819 | 11,398 | 0 | $ | 19,282 | 4.2 | % | ||||||||||||||
UT | 4,878 | 0 | 12,203 | 0 | $ | 17,081 | 3.7 | % | ||||||||||||||
PA | 2,722 | 1,358 | 11,682 | 0 | $ | 15,762 | 3.4 | % | ||||||||||||||
All other states | 34,037 | 33,102 | 135,838 | 1,995 | $ | 204,973 | 44.7 | % | ||||||||||||||
Total fair value | $ | 73,780 | $ | 76,657 | $ | 299,184 | $ | 8,901 | $ | 458,522 | 100.0 | % | ||||||||||
% of total fair value | 16.1 | % | 16.7 | % | 65.2 | % | 1.9 | % | 100.0 | % |
Revenue Bonds | ||||||||||||||||||||||
State | Transportation | Utilities | Education | Other | Total Fair Value | % of Total Exposure | ||||||||||||||||
NY | $ | 10,991 | $ | 0 | $ | 7,655 | $ | 12,596 | $ | 31,243 | 10.4 | % | ||||||||||
CA | 7,404 | 9,733 | 0 | 5,659 | $ | 22,797 | 7.6 | % | ||||||||||||||
TX | 14,821 | 1,070 | 2,869 | 1,938 | $ | 20,698 | 6.9 | % | ||||||||||||||
GA | 7,389 | 4,587 | 1,346 | 3,170 | $ | 16,493 | 5.5 | % | ||||||||||||||
WA | 1,279 | 10,878 | 0 | 2,758 | $ | 14,915 | 5.0 | % | ||||||||||||||
FL | 11,570 | 0 | 0 | 2,797 | $ | 14,367 | 4.8 | % | ||||||||||||||
CO | 5,606 | 0 | 7,185 | 0 | $ | 12,791 | 4.3 | % | ||||||||||||||
IL | 7,963 | 0 | 0 | 4,252 | $ | 12,214 | 4.1 | % | ||||||||||||||
UT | 0 | 7,594 | 0 | 4,609 | $ | 12,203 | 4.1 | % | ||||||||||||||
PA | 5,975 | 0 | 4,410 | 1,297 | $ | 11,682 | 3.9 | % | ||||||||||||||
All other states | 36,709 | 18,219 | 32,501 | 42,354 | $ | 129,782 | 43.4 | % | ||||||||||||||
Total fair value | $ | 109,708 | $ | 52,081 | $ | 55,966 | $ | 81,429 | $ | 299,184 | 100.0 | % | ||||||||||
% of total fair value | 36.7 | % | 17.4 | % | 18.7 | % | 27.2 | % | 100.0 | % |
Rating | ||||||||||
Deal Origination Year | AAA | Total Fair Value | % of Total Exposure | |||||||
2002 | $ | 272 | $ | 272 | 0.1 | % | ||||
2003 | 2,419 | 2,419 | 0.9 | % | ||||||
2004 | 2,896 | 2,896 | 1.0 | % | ||||||
2005 | 5,811 | 5,811 | 2.0 | % | ||||||
2006 | 3,997 | 3,997 | 1.4 | % | ||||||
2007 | 4,913 | 4,913 | 1.7 | % | ||||||
2008 | 10,820 | 10,820 | 3.8 | % | ||||||
2009 | 39,553 | 39,553 | 13.9 | % | ||||||
2010 | 51,213 | 51,213 | 18.0 | % | ||||||
2011 | 36,221 | 36,221 | 12.7 | % | ||||||
2012 | 96,912 | 96,912 | 34.1 | % | ||||||
2013 | 29,311 | 29,311 | 10.3 | % | ||||||
Total fair value | $ | 284,338 | $ | 284,338 | 100.0 | % | ||||
% of total fair value | 100.0 | % | 100.0 | % |
Rating | ||||||||||||||
Deal Origination Year | AAA | AA | Total Fair Value | % of Total Exposure | ||||||||||
2004 | $ | 3,322 | $ | 0 | $ | 3,322 | 8.6 | % | ||||||
2005 | 12,179 | 0 | 12,179 | 31.4 | % | |||||||||
2006 | 15,167 | 0 | 15,167 | 39.1 | % | |||||||||
2007 | 3,884 | 0 | 3,884 | 10.0 | % | |||||||||
2008 | 0 | 761 | 761 | 2.0 | % | |||||||||
2010 | 1,936 | 0 | 1,936 | 5.0 | % | |||||||||
2012 | 1,579 | 0 | 1,579 | 4.1 | % | |||||||||
Total fair value | $ | 38,067 | $ | 761 | $ | 38,828 | 100.0 | % | ||||||
% of total fair value | 98.0 | % | 2.0 | % | 100.0 | % |
Rating | ||||||||||||||
Deal Origination Year | AAA | AA | Total Fair Value | % of Total Exposure | ||||||||||
2002 | $ | 657 | $ | 980 | $ | 1,638 | 14.1 | % | ||||||
2003 | 753 | 605 | 1,358 | 11.7 | % | |||||||||
2004 | 1,238 | 0 | 1,238 | 10.6 | % | |||||||||
2009 | 2,748 | 0 | 2,748 | 23.6 | % | |||||||||
2010 | 3,533 | 0 | 3,533 | 30.3 | % | |||||||||
2011 | 1,132 | 0 | 1,132 | 9.7 | % | |||||||||
Total fair value | $ | 10,061 | $ | 1,585 | $ | 11,647 | 100.0 | % | ||||||
% of total fair value | 86.4 | % | 13.6 | % | 100.0 | % |
Rating | ||||||||||||||||||
Deal Origination Year | AAA | AA | A | Total Fair Value | % of Total Exposure | |||||||||||||
2001 | $ | 70 | $ | 0 | $ | 0 | $ | 70 | 0.1 | % | ||||||||
2003 | 5,522 | 0 | 0 | 5,522 | 8.7 | % | ||||||||||||
2004 | 4,998 | 0 | 0 | 4,998 | 7.8 | % | ||||||||||||
2010 | 742 | 836 | 0 | 1,578 | 2.5 | % | ||||||||||||
2011 | 8,022 | 0 | 0 | 8,022 | 12.6 | % | ||||||||||||
2012 | 24,535 | 6,454 | 3,496 | 34,485 | 54.0 | % | ||||||||||||
2013 | 3,709 | 5,121 | 327 | 9,158 | 14.3 | % | ||||||||||||
Total fair value | $ | 47,598 | $ | 12,412 | $ | 3,823 | $ | 63,833 | 100.0 | % | ||||||||
% of total fair value | 74.6 | % | 19.4 | % | 6.0 | % | 100.0 | % |
Rating | |||||||||||||||||||||||
Industry Sector | AA | A | BBB | Non- investment Grade | Total Fair Value | % of Total Exposure | |||||||||||||||||
Basic Materials | $ | 0 | $ | 0 | $ | 8,844 | $ | 5,547 | $ | 14,390 | 3.9 | % | |||||||||||
Communications | 0 | 0 | 13,654 | 14,701 | $ | 28,355 | 7.6 | % | |||||||||||||||
Consumer, Cyclical | 1,269 | 1,610 | 6,394 | 14,533 | $ | 23,806 | 6.4 | % | |||||||||||||||
Consumer, Non-cyclical | 2,526 | 16,972 | 13,560 | 17,031 | $ | 50,089 | 13.4 | % | |||||||||||||||
Energy | 1,684 | 16,527 | 9,522 | 17,718 | $ | 45,451 | 12.2 | % | |||||||||||||||
Financial | 10,386 | 77,835 | 38,488 | 17,450 | $ | 144,159 | 38.6 | % | |||||||||||||||
Industrial | 0 | 4,683 | 7,689 | 17,807 | $ | 30,178 | 8.1 | % | |||||||||||||||
Technology | 0 | 1,705 | 6,652 | 7,791 | $ | 16,149 | 4.3 | % | |||||||||||||||
Utilities | 0 | 6,718 | 6,334 | 7,679 | $ | 20,731 | 5.6 | % | |||||||||||||||
Total fair value | $ | 15,866 | $ | 126,050 | $ | 111,137 | $ | 120,256 | $ | 373,308 | 100.0 | % | |||||||||||
% of total fair value | 4.3 | % | 33.8 | % | 29.8 | % | 32.2 | % | 100.0 | % |
Rating | ||||||||||||||||||||||
Issuer or Guarantor | AA | A | BBB | Non- investment Grade | Total Fair Value | % of Total Exposure | ||||||||||||||||
Aruba | $ | 0 | $ | 752 | $ | 0 | $ | 0 | $ | 752 | 1.9 | % | ||||||||||
Australia | 0 | 964 | 0 | 0 | $ | 964 | 2.4 | % | ||||||||||||||
Britain | 4,719 | 9,154 | 0 | 0 | $ | 13,872 | 34.8 | % | ||||||||||||||
Canada | 0 | 10,171 | 3,041 | 2,657 | $ | 15,868 | 39.8 | % | ||||||||||||||
Cayman Islands | 0 | 0 | 0 | 650 | $ | 650 | 1.6 | % | ||||||||||||||
France | 2,083 | 985 | 0 | 0 | $ | 3,067 | 7.7 | % | ||||||||||||||
Switzerland | 0 | 4,651 | 0 | 0 | $ | 4,651 | 11.7 | % | ||||||||||||||
Total fair value | $ | 6,801 | $ | 26,676 | $ | 3,041 | $ | 3,307 | $ | 39,824 | 100.0 | % | ||||||||||
% of total fair value | 17.1 | % | 67.0 | % | 7.6 | % | 8.3 | % | 100.0 | % |
Period | Total Number of Shares Purchased | Average Price Paid per Share (a) | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (b) | Maximum Number (or Approximate Dollar Value) that May Yet Be Purchased Under the Plans or Programs (b) | |||||||||
April 1, 2013 - April 30, 2013 | 52,135 | $ | 56.25 | 44,500 | $ | 48,146,077 | |||||||
May 1, 2013 - May 31, 2013 | 12,300 | $ | 58.50 | 12,300 | 47,426,112 | ||||||||
June 1, 2013 - June 30, 2013 | 22,857 | $ | 57.53 | 22,700 | 46,119,523 | ||||||||
Total | 87,292 | $ | 56.91 | 79,500 | $ | 46,119,523 |
(a) | Average price paid per share excludes commissions. |
(b) | On November 6, 2012, our Board of Directors increased the authority under our current share and debt repurchase plan by $25.0 million and extended the date to execute the program to December 31, 2014 from December 31, 2012. |
Infinity Property and Casualty Corporation | ||
BY: | /s/ ROGER SMITH | |
August 8, 2013 | Roger Smith | |
Executive Vice President, Chief Financial Officer and Treasurer (principal financial and accounting officer) |
1. | I have reviewed this quarterly report on Form 10-Q of Infinity Property and Casualty Corporation; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
August 8, 2013 | BY: | /s/ JAMES R. GOBER |
James R. Gober | ||
Chief Executive Officer | ||
(principal executive officer) |
1. | I have reviewed this quarterly report on Form 10-Q of Infinity Property and Casualty Corporation; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
August 8, 2013 | BY: | /s/ ROGER SMITH |
Roger Smith | ||
Chief Financial Officer | ||
(principal financial officer) |
(1) | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of The Company. |
August 8, 2013 | BY: | /s/ JAMES R. GOBER |
James R. Gober President and Chief Executive Officer | ||
August 8, 2013 | BY: | /s/ ROGER SMITH |
Roger Smith Executive Vice President, Chief Financial Officer and Treasurer |
Accumulated Other Comprehensive Income
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Jun. 30, 2013
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Stockholders' Equity Note [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Income The components of other comprehensive income before and after tax are as follows (in thousands):
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Fair Value
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Jun. 30, 2013
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value | Fair Value Fair values of instruments are based on:
The following tables present, for each of the fair value hierarchy levels, our assets and liabilities for which we report fair value on a recurring basis (in thousands):
We do not report our long-term debt at fair value in the Consolidated Balance Sheets. The $272.8 million and $288.9 million fair value of our long-term debt at June 30, 2013 and December 31, 2012, respectively, would be included in Level 2 of the fair value hierarchy if it were reported at fair value. Level 1 includes cash and cash equivalents, U.S. Treasury securities, an exchange-traded fund and equities invested in a rabbi trust. Level 2 includes securities whose fair value was determined using observable market inputs. Level 3 securities are comprised of (i) securities for which there is no active or inactive market for similar instruments, (ii) securities whose fair value is determined based on unobservable inputs and (iii) securities, other than those backed by the U.S. Government, that are not rated by a nationally recognized statistical rating organization ("NRSRO"). We recognize transfers between levels at the beginning of the reporting period. A third party nationally recognized pricing service provides the fair value of securities in Level 2. We review the third party pricing methodologies quarterly and test for significant differences between the market price used to value the security and recent sales activity. The following tables present the changes in the Level 3 fair value category (in thousands):
Of the $11.2 million fair value of securities in Level 3 at June 30, 2013, which consists of 12 securities, we priced five based on non-binding broker quotes, four prices were provided by our unaffiliated money managers and one security, which is included in Level 3 because it is not rated by a nationally recognized statistical rating organization, was priced by a nationally recognized pricing service. We manually calculated the remaining two securities, which have a combined fair value of $0.7 million. Quantitative information about the significant unobservable inputs used in the fair value measurement of these manually priced securities at June 30, 2013 is as follows (in millions):
The significant unobservable inputs used in the fair value measurement of our manually-priced corporate bonds are a probability of default assumption and an assigned credit rating. Significant changes in either of these inputs in isolation could result in a significant change in fair value measurement for these corporate bonds. Generally, a reduction in probability of default would increase security valuation. A change in the credit rating assumption would change the yield spread associated with that bond, and thus the yield used in discounting the cash flows to arrive at the security’s valuation. There were no transfers between Levels 1, 2 or 3 during the six months ended June 30, 2013. The gains or losses included in net earnings are included in the line item net realized gains on investments in the Consolidated Statements of Earnings. We recognize the net gains or losses included in other comprehensive income in the line item unrealized gains (losses) on investments, net in the Consolidated Statements of Comprehensive Income and the line item change in unrealized gain on investments or the line item change in non-credit component of impairment losses on fixed maturities in the Consolidated Statements of Changes in Shareholders’ Equity. The following table presents the carrying value and estimated fair value of our financial instruments (in thousands):
See Note 4 to the Consolidated Financial Statements for additional information on investments and Note 5 for additional information on long-term debt. |
Insurance Reserves (Tables)
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Jun. 30, 2013
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Insurance [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Liability for unpaid losses and LAE | The following table provides an analysis of changes in the liability for unpaid losses and LAE on a GAAP basis (in thousands):
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Reporting And Accounting Policies Accounting Policies (Policies)
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6 Months Ended |
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Jun. 30, 2013
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Accounting Policies [Abstract] | |
Basis of reporting | The accompanying consolidated financial statements are unaudited and should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2012. This Quarterly Report on Form 10-Q, including the Condensed Notes to Consolidated Financial Statements and Management’s Discussion and Analysis of Financial Condition and Results of Operations, focuses on our financial performance since the beginning of the year. These financial statements reflect certain adjustments necessary for a fair presentation of our results of operations and financial position. Such adjustments consist of normal, recurring accruals recorded to match expenses with their related revenue streams and the elimination of all significant inter-company transactions and balances. |
Estimates | We based certain accounts and balances within these financial statements upon our estimates and assumptions. The amount of reserves for claims not yet paid, for example, is an item that we can only record by estimation. Unrealized capital gains and losses on investments are subject to market fluctuations, and we use judgment in the determination of whether unrealized losses on certain securities are temporary or other-than-temporary. Should actual results differ significantly from these estimates, the effect on our results of operations could be material. The results of operations for the periods presented may not be indicative of our results for the entire year. |
Recently Adopted Accounting Standards | Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income In February 2013, the FASB issued guidance requiring expanded disclosures about amounts reclassified out of accumulated other comprehensive income (AOCI). Entities are required to present reclassifications by component when reporting changes in AOCI balances. The guidance requires the presentation of significant amounts reclassified out of AOCI by income statement line item. We adopted the new guidance as of March 31, 2013. The new guidance affects disclosures only and therefore had no impact on our results of operations or financial position. |
Computation Of Earnings Per Share (Details) (USD $)
In Thousands, except Per Share data, unless otherwise specified |
3 Months Ended | 6 Months Ended | |||
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Jun. 30, 2013
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Jun. 30, 2012
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Jun. 30, 2013
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Dec. 31, 2012
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Jun. 30, 2012
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Computation of net earnings per share | |||||
Net earnings | $ 7,408 | $ 6,954 | $ 16,070 | $ 13,072 | $ 11,248 |
Average basic shares outstanding (shares) | 11,448 | 11,709 | 11,485 | 11,719 | |
Basic net earnings per share (usd per share) | $ 0.65 | $ 0.59 | $ 1.40 | $ 0.96 | |
Average diluted shares outstanding (shares) | 11,643 | 11,937 | 11,698 | 11,993 | |
Diluted net earnings per share (usd per share) | $ 0.64 | $ 0.58 | $ 1.37 | $ 0.94 | |
Restricted Stock
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Computation of net earnings per share | |||||
Dilutive shares (shares) | 47 | 23 | 45 | 22 | |
Stock Options
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Computation of net earnings per share | |||||
Dilutive shares (shares) | 31 | 99 | 34 | 105 | |
Performance Shares
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Computation of net earnings per share | |||||
Dilutive shares (shares) | 117 | 106 | 135 | 148 |
Reporting And Accounting Policies (Details)
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Sep. 30, 2012
states
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of states licensed to write insurance | 50 |
Investments - Summary of unrealized gains and losses (Details)
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Jun. 30, 2013
Securities
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Dec. 31, 2012
Securities
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Investments, Debt and Equity Securities [Abstract] | ||
Number of positions held with unrealized gains (positions) | 513 | 749 |
Number of positions held with unrealized losses (positions) | 442 | 147 |
Number of positions held that individually exceed unrealized gains of $500,000 (positions) | 2 | 3 |
Number of positions held that individually exceed unrealized losses of $500,000 (positions) | 0 | 0 |
Percentage of positions held with unrealized gains that were investment grade (percent) | 82.00% | 81.00% |
Percentage of positions held with unrealized losses that were investment grade (percent) | 86.00% | 86.00% |
Percentage of fair value held with unrealized gains that were investment grade (percent) | 92.00% | 92.00% |
Percentage of fair value held with unrealized losses that were investment grade (percent) | 90.00% | 93.00% |
Income Taxes (Details) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||
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Jun. 30, 2013
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Jun. 30, 2012
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Jun. 30, 2013
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Jun. 30, 2012
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Income Tax Disclosure [Abstract] | ||||
Federal statutory income tax rate (percent) | 35.00% | |||
Income tax reconciliation | ||||
Earnings before income taxes | $ 10,129 | $ 9,323 | $ 22,234 | $ 14,845 |
Income taxes at statutory rates | 3,545 | 3,263 | 7,782 | 5,196 |
Dividends-received deduction | (130) | (42) | (179) | (79) |
Tax-exempt interest | (716) | (814) | (1,465) | (1,644) |
Adjustment to valuation allowance | 0 | (80) | 0 | 80 |
Other | 22 | 41 | 27 | 44 |
Provision for income taxes | $ 2,721 | $ 2,369 | $ 6,164 | $ 3,597 |
GAAP effective tax rate (percent) | 26.90% | 25.40% | 27.70% | 24.20% |
Investments - Textual (Details) (USD $)
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3 Months Ended | 6 Months Ended | |||
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Jun. 30, 2013
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Jun. 30, 2012
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Jun. 30, 2013
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Jun. 30, 2012
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Dec. 31, 2012
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Investments, Debt and Equity Securities [Abstract] | |||||
Proceeds from Sale of Available-for-sale Securities | $ 91,900,000 | $ 86,700,000 | $ 288,200,000 | $ 123,500,000 | |
Receivable for Investments Sold | $ 5,399,000 | $ 5,399,000 | $ 48,467,000 |
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