New Jersey | 22-2168890 | |
(State or Other Jurisdiction of Incorporation or Organization) | (I.R.S. Employer Identification No.) | |
40 Wantage Avenue, Branchville, New Jersey | 07890 | |
(Address of Principal Executive Offices) | (Zip Code) | |
Registrant’s telephone number, including area code: | (973) 948-3000 |
Title of each class | Name of each exchange on which registered | |
Common Stock, par value $2 per share | NASDAQ Global Select Market | |
5.875% Senior Notes due February 9, 2043 | New York Stock Exchange |
Large accelerated filer x | Accelerated filer ¨ |
Non-accelerated filer ¨ | Smaller reporting company ¨ |
Emerging growth company ¨ |
SELECTIVE INSURANCE GROUP, INC. | ||
Table of Contents | ||
Page No. | ||
PART I | ||
Item 1. | ||
Item 1A. | ||
Item 1B. | ||
Item 2. | ||
Item 3. | ||
PART II | ||
Item 5. | ||
Item 6. | ||
Item 7. | ||
Item 7A. | ||
Item 8. | ||
December 31, 2018, 2017, and 2016 | ||
December 31, 2018, 2017, and 2016 | ||
December 31, 2018, 2017, and 2016 | ||
December 31, 2018, 2017, and 2016 | ||
Item 9. | ||
Item 9A. | ||
Item 9B. | ||
PART III | ||
Item 10. | ||
Item 11. | ||
Item 12. | ||
Item 13. | ||
Item 14. | ||
PART IV | ||
Item 15. |
Rating Agency | Financial Strength Rating | Outlook | ||
A.M. Best | A | Stable | ||
Standard & Poor’s Global Ratings (“S&P”) | A | Stable | ||
Moody’s Investors Services (“Moody’s”) | A2 | Stable | ||
Fitch Ratings (“Fitch”) | A+ | Stable |
• | Standard Commercial Lines, which is comprised of insurance products and services provided in the standard marketplace to commercial enterprises; typically businesses, non-profit organizations, and local government agencies. This business represents 79% of our total insurance operations’ NPW and is sold in 27 states and the District of Columbia. |
• | Standard Personal Lines, which is comprised of insurance products and services provided primarily to individuals acquiring coverage in the standard marketplace. This business represents 12% of our total insurance operations’ NPW and is sold in 15 states. Standard Personal Lines includes flood insurance coverage. We are the fifth largest writer of this coverage through the National Flood Insurance Program (“NFIP”) and write flood business in all 50 states and the District of Columbia. |
• | E&S Lines, which is comprised of insurance products and services provided to customers who have not obtained coverage in the standard marketplace. We currently only write commercial lines E&S coverages. This business represents 9% of our total insurance operations’ NPW and is sold in all 50 states and the District of Columbia. |
• | Investments, which invests the premiums collected by our insurance operations and amounts generated through our capital management strategies, which include the issuance of debt and equity securities. |
• | Underwriting income/loss from our insurance operations. Underwriting income/loss is comprised of revenues, which are the premiums earned on our insurance products and services, less expenses. Gross premiums are direct premium written ("DPW") plus premiums assumed from other insurers. NPW is equal to gross premiums less premium ceded to reinsurers. NPW is recognized as revenue ratably over a policy’s term as net premiums earned (“NPE”). |
• | Net investment income from the investment segment. We generate income from investing insurance premiums and amounts generated through our capital management strategies. Net investment income consists primarily of: (i) interest earned on fixed income investments and preferred stocks; (ii) dividends earned on equity securities; and (iii) other income primarily generated from our alternative investment portfolio. |
• | Net realized and unrealized gains and losses on investment securities from the investments segment. Realized gains and losses from the investment portfolios of the Insurance Subsidiaries and the Parent are typically the result of sales, calls, and redemptions. They also include write downs from other-than-temporary impairments (“OTTI”). Due to a change in accounting literature that became effective January 1, 2018, changes in unrealized gains and losses on our equity portfolio are now recognized in income through "Net unrealized losses on equity securities" on our Consolidated Statements of Income. |
• | Property insurance, which generally covers the financial consequences of accidental loss of an insured’s real and/or personal property. Property claims are generally reported and settled in a relatively short period of time. |
• | Casualty insurance, which generally covers the financial consequences of employee injuries in the course of employment and bodily injury and/or property damage to a third party as a result of an insured’s negligent acts, omissions, or legal liabilities. Casualty claims may take several years, and for some casualty claims even several decades, to be reported and settled. |
Types of Policies | Category of Insurance | Standard Commercial Lines | Standard Personal Lines | E&S Lines | |
Commercial Property (including Inland Marine) | Property | X | X | ||
Commercial Automobile | Property/Casualty | X | X | ||
General Liability (including Excess Liability/Umbrella) | Casualty | X | X | ||
Workers Compensation | Casualty | X | |||
Businessowners' Policy | Property/Casualty | X | |||
Bonds (Fidelity and Surety) | Casualty | X | |||
Homeowners | Property/Casualty | X | |||
Personal Automobile | Property/Casualty | X | |||
Personal Umbrella | Casualty | X | |||
Flood1 | Property | X | X |
Percentage of Standard Commercial Lines | Description | |||
Contractors | 39% | General contractors and trade contractors | ||
Mercantile and Services | 25% | Focuses on retail, office, service businesses, restaurants, golf courses, and hotels | ||
Community and Public Services | 18% | Focuses on public entities, social services, religious institutions, and schools | ||
Manufacturing and Wholesale | 17% | Includes manufacturers, wholesalers, and distributors | ||
Bonds | 1% | Includes fidelity and surety | ||
Total Standard Commercial Lines | 100% |
• | The average Standard Commercial Lines premium per customer is approximately $12,000. |
• | The average Standard Personal Lines premium per customer is approximately $2,000. |
• | The average E&S Lines premium per policy is approximately $3,000. |
• | Standard Commercial Lines products and services are sold in 27 states located in the Eastern, Midwestern, and Southwestern regions of the United States and the District of Columbia. |
• | Standard Personal Lines products and services are sold in 15 states located in the Eastern, Midwestern, and Southwestern regions of the United States, except for the flood portion of this segment, which is sold in all 50 states and the District of Columbia. |
• | E&S Lines products and services are sold in all 50 states and the District of Columbia. |
Region | Office Location | |
Heartland | Carmel, Indiana | |
New Jersey | Hamilton, New Jersey | |
Northeast | Branchville, New Jersey | |
Mid-Atlantic | Allentown, Pennsylvania and Hunt Valley, Maryland | |
Southern | Charlotte, North Carolina | |
Southwest | Scottsdale, Arizona |
• | Standard Commercial Lines: independent retail agents; |
• | Standard Personal Lines: independent retail agents; and |
• | E&S Lines: wholesale general agents. |
• | Use an empowered field underwriting model to provide our Standard Commercial Lines retail distribution partners with resources within close geographic proximity to their businesses and our mutual customers. For further discussion on this, see the “Field Model and Technology” section below. |
• | Develop close relationships with each distribution partner, particularly their principals and producers by: (i) soliciting their feedback on products and services; (ii) advising them concerning our product developments; and (iii) providing education and development focusing on producer recruitment, sales training, enhancing customer experience, online marketing, and distribution operations. |
• | Develop with each distribution partner, and then carefully monitor, annual goals regarding: (i) types and mix of risks placed with us; (ii) new business and renewal retention expectations; (iii) customer service; (iv) pricing of their in-force book and changes in renewal prices; and (v) profitability of business placed with us. |
• | Develop brand recognition with our customers through our marketing efforts to be recognized as a proactive risk manager that provides the value-added services that customers seek, which include proactive communication, and providing exceptional products and services that help position us as a leader in the marketplace. |
• | Our distribution partners and customers with access to accurate business information and the ability to process certain transactions from their locations, seamlessly integrating those transactions into our systems; |
• | Our underwriters with targeted underwriting and pricing tools to enhance profitability while growing the business; |
• | Our workers compensation claims adjusters with predictive tools to indicate when claims are likely to escalate to better serve our customers; |
• | Our Special Investigations Unit ("SIU") investigators access to our business intelligence systems to better identify claims with potential fraudulent activities; |
• | Our claims recovery and subrogation departments with the ability to expand and enhance their models through the use of our business intelligence systems; and |
• | Our customers with 24x7 access to transactional capabilities and information through a web-based customer portal and a customer mobile application. |
• | Our Regions, which together with our corporate underwriting and actuarial departments, jointly establish and execute upon the following for our Standard Commercial Lines business: (i) annual premium and pricing goals; (ii) specific new business targets by distribution partner; and (iii) profit improvement plans as needed across our business segments, lines, states, and/or distribution partners; |
• | Our corporate underwriting department, which develops our underwriting appetite, products, policy forms, pricing, and underwriting guidelines for our standard market business; |
• | Our corporate actuaries who assist in the determination of rate and pricing levels, while monitoring pricing and profitability along with the Regions, corporate underwriting department, and business intelligence staff for our standard and E&S market business; |
• | Our distribution partners, which include independent retail agents for our standard market business and wholesale general agents for our E&S market business, that provide front-line underwriting within our prescribed guidelines; |
• | Our Agency Management Specialists (“AMSs”), who: (i) manage the growth and profitability of business that their assigned distribution partners write with us; and (ii) perform field underwriting for new Standard Commercial Lines business; |
• | Our field operations leadership, who have oversight of the AMS production team for Standard Commercial Lines, ensure that: (i) annual profit and growth plans are developed on a state by state basis; (ii) the achievement of these state plans are monitored at the state, AMS territory and account level; and (iii) individual agency plans are developed and monitored for achievement annually; |
• | Our Standard Commercial Lines small business teams that are responsible for handling: (i) new business in need of review that was submitted by our distribution partners through our automated underwriting platform, One & Done®; and (ii) other new small accounts and middle market accounts with low underwriting complexity; |
• | Our Safety Management Specialists (“SMSs”), who provide a wide range of front-line safety management services to our Standard Commercial Lines customers as discussed more fully below; |
• | Our regional underwriters, who manage our in-force policies for their assigned Standard Commercial Lines distribution partners, including, but not limited to, managing profitability and pricing levels within their portfolios by developing policy-specific pricing; |
• | Our managers and underwriters, who are responsible for new business, renewal underwriting and service needs for our large Standard Commercial Lines accounts, including those written with alternative risk transfer techniques for our distribution partners; |
• | Our premium auditors, who supplement the underwriting process by working with insureds to accurately audit exposures for certain Standard Commercial Lines policies that we write; |
• | Our field technical coordinators, who are responsible for technology assistance and training to aid our employees and standard market distribution partners; |
• | Our Personal Lines Marketing Specialists (“PLMSs”), who have primary responsibility for identifying new opportunities to grow our Standard Personal Lines; and |
• | Our E&S territory managers, who have primary responsibility for identifying new opportunities to grow our E&S Lines. |
• | Liability claims with high severity or technically complex losses are handled by the CCU. The CCU specialists are primarily field-based employees, and handle losses based on injury type or with expected severities greater than $250,000 in our Standard Commercial Lines and Standard Personal Lines, and severities greater than $100,000 in our E&S Lines. |
• | Litigated matters not meeting the CCU criteria are handled within our litigation unit. Teams of litigation adjusters are aligned based upon jurisdictional knowledge and technical experience and are supervised by regional litigation managers. These claims are segregated from the CMSs to allow for focused management and application of specific technical expertise. |
• | Workers compensation claims handling is centralized in Charlotte, North Carolina. Jurisdictionally trained and aligned medical-only and lost-time adjusters manage non-complex workers compensation claims within our footprint. Claims with high exposure and/or significant escalation risk are referred to the workers compensation strategic case management unit. |
• | Low severity/high volume property claims are handled by the CSC. Certain complex claims that do not involve structural damage (i.e. employee dishonesty and equipment breakdown losses) are handled by a small group of specialists in the CSC. |
• | The Large Loss Unit ("LLU") handles complex property claims, typically those in excess of $100,000. |
• | All asbestos and environmental claims are referred to our specialized corporate Environmental Unit, which also handles other latent claims. |
• | The Construction Defect Unit unit handles larger, complex construction defect claims. |
• | All abuse and molestation claims have been centralized in one unit so as to apply the highest level of expertise possible to this emerging risk within the industry. |
• | Regional insurers, such as Acuity Insurance, American Family Insurance Group, Auto-Owners Insurance, Cincinnati Financial Corporation, Erie Indemnity Company, The Hanover Insurance Group, Inc., United Fire Group, Inc., and Westfield Insurance. |
• | National insurers, such as Chubb Limited, The Hartford Financial Services Group, Inc., Liberty Mutual Holding Company Inc., Nationwide Mutual Insurance Company, The Progressive Corporation, The Travelers Companies, Inc., and Zurich Insurance Group, Ltd. |
• | Nautilus Insurance Group, a member of W. R. Berkley Company; |
• | Colony Specialty, a member of the Argo Group International Holding Ltd; |
• | Western World Insurance Group, a member of the American International Group; |
• | Century Insurance Group, a member of the Meadowbrook Insurance Group; |
• | The Burlington Insurance Company, a member of IFG Companies; |
• | Scottsdale Insurance Company, an affiliate of Nationwide Mutual Insurance Company; |
• | United States Liability Insurance Group, a member of Berkshire Hathaway, Inc.; |
• | Cincinnati Financial Corporation; and |
• | Markel Corporation. |
• | Pricing and underwriting practices; |
• | Claims practices; |
• | Exiting geographic markets and/or canceling or non-renewing policies; |
• | Assessments for guaranty funds and second-injury funds and other mandatory assigned risks and reinsurance; |
• | The types, quality and concentration of investments we make; |
• | Minimum capital requirements for the Insurance Subsidiaries; |
• | Dividends from our Insurance Subsidiaries to the Parent; and |
• | Privacy and data security. |
• | The Insurance Regulatory Information System ("IRIS"). IRIS identifies 13 industry financial ratios and specifies “usual values” for each ratio. Departure from the usual values on four or more of the financial ratios can lead to inquiries from individual state insurance departments about certain aspects of the insurer's business. Our Insurance Subsidiaries have consistently met the majority of the IRIS ratio tests. |
• | Risk-Based Capital. Risk-based capital is measured by four major areas of risk to which property and casualty insurers are exposed: (i) asset risk; (ii) credit risk; (iii) underwriting risk; and (iv) off-balance sheet risk. Insurers face a steadily increasing amount of regulatory scrutiny and potential intervention as their total adjusted capital declines below three times their "Authorized Control Level." Based on our 2018 statutory financial statements, which have been prepared in accordance with SAP, the total adjusted capital for each of our Insurance Subsidiaries substantially exceeded three times their Authorized Control Level. |
• | Annual Financial Reporting Regulation (referred to as the "Model Audit Rule"). The Model Audit Rule, which is modeled closely on the Sarbanes-Oxley Act of 2002, as amended ("Sarbanes-Oxley Act"), regulates: (i) auditor independence; (ii) corporate governance; and (iii) internal control over financial reporting. As permitted under the Model Audit Rule, the Audit Committee of the Board of Directors (the “Board”) of the Parent also serves as the audit committee of each of our Insurance Subsidiaries. |
• | Own Risk and Solvency Assessment ("ORSA"). ORSA requires insurers to maintain a framework for identifying, assessing, monitoring, managing, and reporting on the “material and relevant risks” associated with the insurers' (or insurance groups') current and future business plans. ORSA, which has been adopted by the state insurance regulators of our Insurance Subsidiaries, requires companies to file an internal assessment of their solvency with insurance regulators annually. Although no specific capital adequacy standard is currently articulated in ORSA, it is possible that such standard will be developed over time and may increase insurers' minimum capital requirements, which could adversely impact our growth and return on equity. |
• | McCarran-Ferguson Act; |
• | Terrorism Risk Insurance Program Reauthorization Act ("TRIPRA"); |
• | Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank Act”); and |
• | Various privacy laws that apply to us because we have personal non-public information, including the: |
◦ | Gramm-Leach-Bliley Act; |
◦ | Fair Credit Reporting Act; |
◦ | Drivers Privacy Protection Act; and |
◦ | Health Insurance Portability and Accountability Act. |
• | The establishment of the Federal Insurance Office (“FIO”) under the United States Department of the Treasury; |
• | Federal Reserve oversight of financial services firms designated as systemically important; and |
• | Corporate governance reforms for publicly-traded companies. |
• | In 2014, the International Association of Insurance Supervisors proposed Basic Capital Standards for Global Systemically Important Insurers as well as a uniform capital framework for internationally active insurers; and |
• | The European Union enacted Solvency II, which sets out new requirements on capital adequacy and risk management for insurers operating in Europe, which was implemented in 2016. |
Category of Investment | ||||||
($ in millions, except invested assets per dollar of stockholders' equity) | Carrying Value | % of Investment Portfolio | ||||
Fixed income securities | $ | 5,310.2 | 89 | |||
Equity securities | 147.7 | 2 | ||||
Short-term investments | 323.9 | 6 | ||||
Other investments, including alternatives | 178.9 | 3 | ||||
Total | $ | 5,960.7 | 100 | |||
Invested assets per dollar of stockholders' equity | $ | 3.33 |
• | Asset risk, which stems primarily from our investment portfolio and reinsurance recoverables and includes credit and market risk; |
• | Underwriting risk, which is the risk that the insured losses are higher than our expectations, including: |
◦ | Losses from inadequate loss reserves; |
◦ | Larger than expected non-catastrophe current accident year losses; and |
◦ | Catastrophe losses that exceed our expectations or our reinsurance treaty limits. |
• | Liquidity risk, which is the risk we will be unable to meet contractual obligations as they become due because we are unable to liquidate assets or obtain adequate funding without incurring unacceptable losses; |
• | Emerging risks, which are new and known but evolving risks that may have a significant impact on our financial strength, reputation, or long-term strategy, potentially including U.S. and global economic concerns; and |
• | Other risks, including a broad range of operational risks that can be difficult to quantify, such as legal, regulatory, reputational, and strategic risks as well as the risk of fraud, human failure, and failure of controls and systems, including, for example a rapidly evolving cyber security risk. |
• | Our reinsurers, who are obligated to us under our reinsurance agreements. During periods of high catastrophe loss activity, amounts recoverable from our reinsurers and the correlated credit risk can increase quickly and significantly, fluctuating over time. Our reinsurers also often rely on their own reinsurance programs, or retrocessions, to manage their exposure to large losses. Any limitations on or the inability of our reinsurers to collect on their retrocession programs, or reinstate coverage after a large loss, particularly given the relatively small size of the global reinsurer community, may impair their ability to pay our reinsurance claims. Accordingly, we have direct and indirect counterparty credit risk from our reinsurers. We attempt to mitigate our direct and indirect counterparty credit risk from our reinsurers by: (i) pursuing relationships with reinsurers rated “A-” or higher by A.M. Best; and/or (ii) obtaining collateral to secure reinsurance obligations. |
• | Certain life insurance companies if they fail to fulfill their obligations to those customers for whom we have purchased annuities under structured settlement agreements. |
• | Some of our distribution partners, who collect premiums due us from our customers. |
• | Some of our customers, who are responsible for payment of premiums and/or deductibles directly to us. |
• | The invested assets in our defined benefit plan, which partially fund our liability associated with this plan. To the extent that credit risk adversely impacts the valuation and performance of the invested assets in our defined benefit plan, the funded status of the defined benefit plan could be adversely impacted and, if so, the expense of the plan and our obligations under it could increase. |
NRSRO | Credit Rating | Long Term Credit Outlook | ||
A.M. Best | bbb+ | Stable | ||
S&P | BBB | Stable | ||
Moody’s | Baa2 | Stable | ||
Fitch | BBB+ | Stable |
• | The availability of products from multiple markets creates competition in our distribution channel and we must market our products and services to our distribution partners before they sell them to our mutual customers. |
• | Growth in our market share is dependent, in part, on growth in the market share controlled by our distribution partners. Independent retail insurance agencies control 84% of Standard Commercial Lines business but only 35% of Standard Personal Lines business in the U.S. Consequently, our Standard Personal Lines market opportunity could be more limited. Over the last several years, more competitors are focused on lower cost "direct to customer" distribution models based on technological developments and efficiencies. Continued advancements in "direct to customer" distribution models may impact the overall market share controlled by our distribution partners and make it more difficult for us to grow or require us to establish relationships with more distribution partners. |
• | There has been an increasing trend of consolidation among our independent distribution partners, particularly by private-equity-backed entities and publicly-traded insurance brokers ("aggregators"). As more of our independent distribution partners consolidate and become larger, their influence on our business and premium production can increase. For example, they could direct the business they produce to be consolidated with a smaller group of insurance carriers, which may or may not include us. With their increased size and control of meaningful amounts of business, they could also increase insurance carrier costs through requiring higher base and supplemental commissions to place business. Aggregators accounted for approximately 28% of our DPW at December 31, 2018. Currently, no one distribution partner is responsible for 10% or more of our combined insurance operations' premium. |
• | Pricing and underwriting practices; |
• | Claims practices; |
• | Exiting geographic markets and/or canceling or non-renewing policies; |
• | Assessments for guaranty funds and second-injury funds and other mandatory assigned risks and reinsurance; |
• | The types, quality, and concentration of investments we make; |
• | Dividends from our Insurance Subsidiaries to the Parent; and |
• | The acquisition of 10% or more of the stock of a company such as Selective, which is an insurance holding company that owns insurance subsidiaries. |
• | Related to our financial condition, review and approval of such matters as minimum capital and surplus requirements, standards of solvency, security deposits, methods of accounting, form and content of statutory financial statements, reserves for unpaid loss and loss expenses, reinsurance, payment of dividends and other distributions to shareholders, periodic financial examinations, and annual and other report filings. |
• | Related to our general business, review and approval of such matters as certificates of authority and other insurance company licenses, licensing and compensation of distribution partners, premium rates (which may not be excessive, inadequate, or unfairly discriminatory), policy forms, policy terminations, reporting of statistical information regarding our premiums and losses, periodic market conduct examinations, unfair trade practices, participation in mandatory shared market mechanisms, such as assigned risk pools and reinsurance pools, participation in mandatory state guaranty funds, and mandated continuing workers compensation coverage post-termination of employment. |
• | Related to our ownership of the Insurance Subsidiaries, we are required to register as an insurance holding company system in each state where an insurance subsidiary is domiciled and report information concerning all of our operations that may materially affect the operations, management, or financial condition of the insurers. As an insurance holding company, the appropriate state regulatory authority may: (i) examine our Insurance Subsidiaries or us at any time; (ii) require disclosure or prior approval of material transactions of any of the Insurance Subsidiaries with its affiliates; and (iii) require prior approval or notice of certain transactions, such as payment of dividends or distributions to us. |
• | Urban homeowner insurance underwriting practices, including those related to architectural or structural features and attempts by federal regulators to expand the Federal Housing Administration's guidelines to determine unfair discrimination; |
• | Credit scoring and predictive modeling pricing; |
• | Cybersecurity breaches; |
• | Investment disclosure; |
• | Managed care practices; |
• | Prompt and appropriate payment of personal injury protection claims; |
• | Direct repair shop utilization practices; |
• | The use of after-market replacement parts; |
• | Flood insurance claim practices; and |
• | Shareholder class action suits. |
1. | The highest priority is given to quoted prices in active markets for identical assets or liabilities (Level 1). |
2. | The next priority is to quoted prices in markets that are not active or inputs that are observable either directly or indirectly, including quoted prices for similar assets or liabilities or in markets that are not active and other inputs that can be derived principally from, or corroborated by, observable market data for substantially the full term of the assets or liabilities (Level 2). |
3. | The lowest priority in the fair value hierarchy is to unobservable inputs supported by little or no market activity and that reflect the reporting entity’s own assumptions about the exit price, including assumptions that market participants would use in pricing the asset or liability (Level 3). |
• | Supermajority shareholder voting requirements to approve certain business combinations with interested shareholders (as defined in the Amended and Restated Certificate of Incorporation) unless certain other conditions are satisfied; and |
• | Supermajority shareholder voting requirements to amend the foregoing provisions in our Amended and Restated Certificate of Incorporation. |
• | Being disciplined in our underwriting practices; |
• | Being prudent in our claims management practices, establishing adequate loss and loss expense reserves, and placing appropriate reliance on our claims analytics; |
• | Continuing to develop and implement various underwriting tools and automated analytics to examine historical statistical data regarding our customers and their loss experience to: (i) classify such policies based on that information; (ii) apply that information to current and prospective accounts; and (iii) better predict account profitability; |
• | Continuing to develop our customer experience platform as we grow in our understanding of customer segmentation; |
• | Purchasing reinsurance and using catastrophe modeling; |
• | Being disciplined in our monitoring of, and management over, our ERM framework; and |
• | Being prudent in our financial planning process, which supports our underwriting strategies. |
• | Being prudent in establishing our investment policy and appropriately diversifying our investments, which supports our liabilities and underwriting strategies; |
• | Using models to analyze historical investment performance and predict future investment performance under a variety of scenarios using asset concentration, asset volatility, asset correlation, and systematic risk; and |
• | Closely monitoring investment performance, general economic and financial conditions, and other relevant factors. |
• | Change in exposures and claims frequency and/or severity due to unanticipated consequences of new technologies and their use. For example, technologies have been developed and are being tested for autonomous self-driving |
• | Changes in how insurance products are marketed and purchased due to the availability of new technologies and changes in customer expectations. For example, comparative rating technologies, which are widely used in personal lines insurance, facilitate the process of efficiently generating quotes from multiple insurance companies. This technology makes differentiation based upon factors other than pricing more difficult and has increased price comparisons, resulting in a higher level of quote activity with a lower percentage of quotes becoming new business written. These trends may continue to accelerate and may affect other lines of business, which could put pressure on our future profitability and growth. |
• | New technologies may require the development of new insurance products without the support of sufficient historical claims data for us to continue to compete effectively for our distribution partners' business and customers. |
(a) | (b) | (c) | |||||||||
Plan Category | 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)) | ||||||||
Equity compensation plans approved by security holders | 126,735 | 1 | $ | 14.37 | 5,666,732 | 2 |
Period | Total Number of Shares Purchased1 | Average Price Paid Per Share | Total Number of Shares Purchased as Part of Publicly Announced Programs | Maximum Number of Shares that May Yet Be Purchased Under the Announced Programs | |||||||||
October 1 – 31, 2018 | — | — | — | — | |||||||||
November 1 – 30, 2018 | 2,085 | $ | 63.83 | — | — | ||||||||
December 1 – 31, 2018 | 2 | 66.33 | — | — | |||||||||
Total | 2,087 | $ | 63.83 | — | — |
Five-Year Financial Highlights | ||||||||||||||||||
(All presentations are in accordance with GAAP unless noted otherwise, number of weighted average shares and dollars in thousands, except per share amounts) | ||||||||||||||||||
2018 | 2017 | 2016 | 2015 | 2014 | ||||||||||||||
Net premiums written | $ | 2,514,286 | 2,370,641 | 2,237,288 | 2,069,904 | 1,885,280 | ||||||||||||
Net premiums earned | 2,436,229 | 2,291,027 | 2,149,572 | 1,989,909 | 1,852,609 | |||||||||||||
Net investment income earned | 195,336 | 161,882 | 130,754 | 121,316 | 138,708 | |||||||||||||
Net realized and unrealized (losses) gains1 | (54,923 | ) | 6,359 | (4,937 | ) | 13,171 | 26,599 | |||||||||||
Total revenues | 2,586,080 | 2,469,984 | 2,284,270 | 2,131,852 | 2,034,861 | |||||||||||||
Catastrophe losses | 88,023 | 67,299 | 59,735 | 59,055 | 59,971 | |||||||||||||
Underwriting income | 121,173 | 154,336 | 151,933 | 149,029 | 78,143 | |||||||||||||
Net income | 178,939 | 168,826 | 158,495 | 165,861 | 141,827 | |||||||||||||
Comprehensive income | 105,832 | 204,946 | 151,970 | 136,648 | 136,764 | |||||||||||||
Total assets | 7,952,729 | 7,686,431 | 7,355,848 | 6,904,433 | 6,574,942 | |||||||||||||
Short-term debt | — | — | — | 60,000 | — | |||||||||||||
Long-term debt | 439,540 | 439,116 | 438,667 | 328,192 | 372,689 | |||||||||||||
Stockholders’ equity | 1,791,802 | 1,712,957 | 1,531,370 | 1,398,041 | 1,275,586 | |||||||||||||
Statutory premiums to surplus ratio | 1.4 | 1.4 | 1.4 | 1.5 | 1.4 | |||||||||||||
Combined ratio | 95.0 | % | 93.3 | 92.9 | 92.5 | 95.8 | ||||||||||||
Impact of catastrophe losses on combined ratio | 3.6 | pts | 2.9 | 2.8 | 3.0 | 3.2 | ||||||||||||
Invested assets per dollar of stockholders' equity | $ | 3.33 | 3.32 | 3.50 | 3.64 | 3.77 | ||||||||||||
Yield on investments, after tax | 2.8 | % | 2.1 | 1.9 | 1.9 | 2.2 | ||||||||||||
Debt to capitalization ratio | 19.7 | 20.4 | 22.3 | 21.7 | 22.6 | |||||||||||||
Return on average equity | 10.2 | 10.4 | 10.8 | 12.4 | 11.7 | |||||||||||||
Per share data: | ||||||||||||||||||
Net income: | ||||||||||||||||||
Basic | $ | 3.04 | 2.89 | 2.74 | 2.90 | 2.52 | ||||||||||||
Diluted | 3.00 | 2.84 | 2.70 | 2.85 | 2.47 | |||||||||||||
Dividends to stockholders | $ | 0.74 | 0.66 | 0.61 | 0.57 | 0.53 | ||||||||||||
Stockholders’ equity | 30.40 | 29.28 | 26.42 | 24.37 | 22.54 | |||||||||||||
Price range of common stock: | ||||||||||||||||||
High | 67.17 | 62.40 | 44.00 | 37.91 | 27.65 | |||||||||||||
Low | 53.55 | 38.50 | 29.27 | 25.49 | 21.38 | |||||||||||||
Close | 60.94 | 58.70 | 43.05 | 33.58 | 27.17 | |||||||||||||
Number of weighted average shares: | ||||||||||||||||||
Basic | 58,950 | 58,458 | 57,889 | 57,212 | 56,310 | |||||||||||||
Diluted | 59,713 | 59,357 | 58,747 | 58,156 | 57,351 |
• | Standard Commercial Lines; |
• | Standard Personal Lines; |
• | E&S Lines; and |
• | Investments. |
• | Critical Accounting Policies and Estimates; |
• | Financial Highlights of Results for Years Ended December 31, 2018, 2017, and 2016; |
• | Results of Operations and Related Information by Segment; |
• | Federal Income Taxes; |
• | Financial Condition, Liquidity, and Capital Resources; |
• | Off-Balance Sheet Arrangements; |
• | Contractual Obligations, Contingent Liabilities, and Commitments; and |
• | Ratings. |
As of December 31, 2018 | ||||||||||||||||
Loss and Loss Expense Reserves | ||||||||||||||||
($ in thousands) | Case Reserves | IBNR Reserves | Total | Reinsurance Recoverable on Unpaid Loss and Loss Expense | Net Reserves | |||||||||||
General liability | $ | 244,367 | 1,152,770 | 1,397,137 | 181,102 | 1,216,035 | ||||||||||
Workers compensation | 402,732 | 742,726 | 1,145,458 | 220,683 | 924,775 | |||||||||||
Commercial automobile | 197,777 | 363,234 | 561,011 | 15,641 | 545,370 | |||||||||||
Businessowners' policies | 31,631 | 60,675 | 92,306 | 3,473 | 88,833 | |||||||||||
Commercial property | 63,651 | 10,943 | 74,594 | 12,620 | 61,974 | |||||||||||
Other | 6,339 | 6,686 | 13,025 | 2,909 | 10,116 | |||||||||||
Total Standard Commercial Lines | 946,497 | 2,337,034 | 3,283,531 | 436,428 | 2,847,103 | |||||||||||
Personal automobile | 70,993 | 75,081 | 146,074 | 45,572 | 100,502 | |||||||||||
Homeowners | 14,627 | 20,109 | 34,736 | 1,346 | 33,390 | |||||||||||
Other | 14,569 | 27,844 | 42,413 | 31,777 | 10,636 | |||||||||||
Total Standard Personal Lines | 100,189 | 123,034 | 223,223 | 78,695 | 144,528 | |||||||||||
E&S casualty lines1 | 66,867 | 304,864 | 371,731 | 21,898 | 349,833 | |||||||||||
E&S property lines2 | 8,053 | 7,330 | 15,383 | 367 | 15,016 | |||||||||||
Total E&S Lines | 74,920 | 312,194 | 387,114 | 22,265 | 364,849 | |||||||||||
Total | $ | 1,121,606 | 2,772,262 | 3,893,868 | 537,388 | 3,356,480 |
December 31, 2017 | ||||||||||||||||
Loss and Loss Expense Reserves | ||||||||||||||||
($ in thousands) | Case Reserves | IBNR Reserves | Total | Reinsurance Recoverable on Unpaid Loss and Loss Expense | Net Reserves | |||||||||||
General liability | $ | 260,605 | 1,046,261 | 1,306,866 | 175,276 | 1,131,590 | ||||||||||
Workers compensation | 427,955 | 756,609 | 1,184,564 | 218,024 | 966,540 | |||||||||||
Commercial auto | 200,409 | 291,681 | 492,090 | 16,745 | 475,345 | |||||||||||
Businessowners' policies | 31,758 | 58,522 | 90,280 | 3,926 | 86,354 | |||||||||||
Commercial property | 64,192 | 13,420 | 77,612 | 24,387 | 53,225 | |||||||||||
Other | 5,018 | 8,787 | 13,805 | 2,287 | 11,518 | |||||||||||
Total Standard Commercial Lines | 989,937 | 2,175,280 | 3,165,217 | 440,645 | 2,724,572 | |||||||||||
Personal automobile | 76,895 | 73,356 | 150,251 | 53,129 | 97,122 | |||||||||||
Homeowners | 15,477 | 18,763 | 34,240 | 999 | 33,241 | |||||||||||
Other | 51,646 | 27,029 | 78,675 | 69,333 | 9,342 | |||||||||||
Total Standard Personal Lines | 144,018 | 119,148 | 263,166 | 123,461 | 139,705 | |||||||||||
E&S casualty lines1 | 53,764 | 273,607 | 327,371 | 21,360 | 306,011 | |||||||||||
E&S property lines2 | 6,586 | 8,900 | 15,486 | 389 | 15,097 | |||||||||||
E&S Lines | 60,350 | 282,507 | 342,857 | 21,749 | 321,108 | |||||||||||
Total | $ | 1,194,305 | 2,576,935 | 3,771,240 | 585,855 | 3,185,385 |
(Favorable)/Unfavorable Prior Year Loss and Loss Expense Development | ||||||||||
($ in millions) | 2018 | 2017 | 2016 | |||||||
General liability | $ | (9.5 | ) | (48.3 | ) | (45.0 | ) | |||
Workers compensation | (83.0 | ) | (52.3 | ) | (56.0 | ) | ||||
Commercial automobile | 36.7 | 35.6 | 25.3 | |||||||
Businessowners' policies | (1.5 | ) | 1.9 | 1.8 | ||||||
Commercial property | 7.5 | 8.7 | 0.3 | |||||||
Personal automobile | 3.0 | 6.7 | 1.0 | |||||||
Homeowners | 9.8 | 0.4 | 1.7 | |||||||
E&S casualty lines | 12.0 | 10.0 | 6.0 | |||||||
E&S property lines | (4.8 | ) | 0.1 | 1.2 | ||||||
Other | (0.1 | ) | (2.0 | ) | (2.1 | ) | ||||
Total | $ | (29.9 | ) | (39.2 | ) | (65.8 | ) |
• | Taking meaningful rate and underwriting actions on our renewal portfolio. We will continue to leverage our predictive modeling and analytical capabilities to provide more granular insights as to where best to focus our actions. |
• | Aggressively managing new business pricing and hazard mix, co-underwriting selected higher hazard classes by the field and home office, providing better recognition of risk drivers, and improved pricing. |
• | Reducing premium leakage by improving the quality of our rating information. This includes validating application information using third-party data and obtaining more detailed driver information. |
• | Implementing new tools to score drivers to underwrite more effectively and align rate with exposure. |
• | Over the course of late 2015 and early 2016, our E&S claims handling function was aligned with our standard operations claims function. E&S claims were migrated from the business unit in Scottsdale, Arizona, to the appropriate regional claims operation. Complex claims are referred to the corporate Complex Claims Unit ("CCU") for specialized handling. |
• | Claims have been segregated into “litigated” versus “non-litigated.” Separate claim handling teams have been created, with the required skill sets, to appropriately handle these two types of claims. |
• | We implemented the following expense improvement initiatives regarding outside adjusters and legal counsel: |
◦ | Maximized use of staff counsel, increasing staff where necessary to support claims volume; |
◦ | Utilized staff coverage attorney for coverage reviews; |
◦ | Heightened focus on legal budgeting and expense management; |
◦ | Required panel counsel firms to use our electronic legal billing and budgeting system to better manage budgets and expenses associated with litigation; and |
◦ | Implemented a panel counsel review process. |
• | Increased focus on reducing workers compensation medical costs through more favorable Preferred Provider Organization ("PPO") contracts and greater PPO penetration. |
• | A more comprehensive approach for handling workers compensation claims, with an emphasis towards improving recovery times, allowing for earlier “return-to-work.” This involves elevated and proactive case management in the areas of medical, pharmaceutical, and physical therapy treatments. |
• | The continued use of our CCU, to which all significant and complex liability claims are assigned. This unit has been staffed with personnel that have significant experience in handling and settling these types of claims. |
• | The strategic realignment of our CMS model to handle property claims under $5,000. |
• | The continued use of our Property Claims Specialists ("PCS") and our Property Large Loss Unit ("LLU"). Our PCSs handle claims between $5,000 and $100,000, while the LLU handles claims above $100,000. Both groups form the core of our catastrophe response team. During 2016, we began increasing the number of property claims specialists to respond to property claims with higher severity and/or complexity. This provides us with more staff to respond to claim volume, including the fluctuations that result from catastrophes, while ensuring we have the highest level of property expertise available to apply to our more complex claims. |
• | Continued efforts in the areas of fraud investigation and salvage/subrogation recoveries. These efforts have been supported by predictive models that allow us to better focus our efforts. |
• | The selection of loss and loss expense development factors; |
• | The weight to be applied to each individual actuarial projection method; |
• | Projected future loss trends; and |
• | Expected claim frequencies, severities, and ultimate loss and loss expense ratios for the current accident year. |
Reserve Impacts of Changes to Expected Loss and Loss Expense Reporting Patterns | ||||||||||
($ in millions) | Percentage Decrease/Increase | (Decrease) to Future Calendar Year Reported | Increase to Future Calendar Year Reported | |||||||
General liability | 7 | % | $ | (85 | ) | $ | 85 | |||
Workers compensation | 10 | (65 | ) | 65 | ||||||
Commercial automobile liability | 12 | (55 | ) | 55 | ||||||
Personal automobile liability | 15 | (10 | ) | 10 | ||||||
E&S casualty lines | 10 | (40 | ) | 40 |
Reserve Impacts of Changes to Current Year Expected Ultimate Loss and Loss Expense Ratios | ||||||||||
($ in millions) | Percentage Decrease/Increase | (Decrease) to Current Accident Year Expected Loss and Loss Expense Ratio | Increase to Current Accident Year Expected Loss and Loss Expense Ratio | |||||||
General liability | 10 | pts | $ | (60 | ) | $ | 60 | |||
Workers compensation | 10 | (35 | ) | 35 | ||||||
Commercial automobile liability | 10 | (35 | ) | 35 | ||||||
Personal automobile liability | 10 | (10 | ) | 10 | ||||||
E&S casualty lines | 10 | (20 | ) | 20 |
Financial Highlights of Results for Years Ended December 31, 2018, 2017, and 20161 | |||||||||||||||||||||
2018 vs. 2017 | 2017 vs. 2016 | ||||||||||||||||||||
($ in thousands, except per share amounts) | 2018 | 2017 | 2016 | ||||||||||||||||||
Revenues | $ | 2,586,080 | 2,469,984 | 5 | % | $ | 2,284,270 | 8 | % | ||||||||||||
After-tax net investment income | 160,481 | 118,520 | 35 | 98,405 | 20 | ||||||||||||||||
After-tax underwriting income | 95,727 | 100,318 | (5 | ) | 98,756 | 2 | |||||||||||||||
Net income before federal income tax | 211,721 | 261,968 | (19 | ) | 219,955 | 19 | |||||||||||||||
Net income | 178,939 | 168,826 | 6 | 158,495 | 7 | ||||||||||||||||
Diluted net income per share | $ | 3.00 | 2.84 | 6 | $ | 2.70 | 5 | ||||||||||||||
Diluted weighted-average outstanding shares | 59,713 | 59,357 | 1 | 58,747 | 1 | ||||||||||||||||
Combined ratio | 95.0 | % | 93.3 | 1.7 | pts | 92.9 | % | 0.4 | pts | ||||||||||||
Invested assets per dollar of stockholders' equity | $ | 3.33 | 3.32 | — | % | $ | 3.50 | (5 | ) | % | |||||||||||
After-tax yield on investments | 2.8 | % | 2.1 | 0.7 | pts | 1.9 | % | 0.2 | pts | ||||||||||||
Return on equity ("ROE") | 10.2 | 10.4 | (0.2 | ) | 10.8 | (0.4 | ) | ||||||||||||||
Non-GAAP operating income2 | $ | 218,567 | 184,898 | 18 | % | $ | 161,704 | 14 | % | ||||||||||||
Diluted non-GAAP operating income per share2 | 3.66 | 3.11 | 18 | 2.75 | 13 | ||||||||||||||||
Non-GAAP operating ROE2 | 12.5 | % | 11.4 | 1.1 | pts | 11.0 | % | 0.4 | pts |
Reconciliation of net income to non-GAAP operating income | ||||||||||
($ in thousands) | 2018 | 2017 | 2016 | |||||||
Net income | $ | 178,939 | 168,826 | 158,495 | ||||||
Net realized and unrealized losses (gains), before tax | 54,923 | (6,359 | ) | 4,937 | ||||||
Tax on net realized and unrealized losses (gains) | (15,295 | ) | 2,226 | (1,728 | ) | |||||
Net realized and unrealized losses (gains) | 39,628 | (4,133 | ) | 3,209 | ||||||
Tax Reform impact | — | 20,205 | — | |||||||
Non-GAAP operating income | $ | 218,567 | 184,898 | 161,704 |
Reconciliation of net income per diluted share to non-GAAP operating income per diluted share | 2018 | 2017 | 2016 | |||||||
Net income per diluted share | $ | 3.00 | 2.84 | 2.70 | ||||||
Net realized and unrealized losses (gains), before tax | 0.92 | (0.11 | ) | 0.08 | ||||||
Tax on net realized and unrealized losses (gains) | (0.26 | ) | 0.04 | (0.03 | ) | |||||
Net realized and unrealized losses (gains) | 0.66 | (0.07 | ) | 0.05 | ||||||
Tax Reform impact | — | 0.34 | — | |||||||
Non-GAAP operating income per diluted share | $ | 3.66 | 3.11 | 2.75 |
Reconciliation of ROE to non-GAAP operating ROE | 2018 | 2017 | 2016 | ||||||
ROE | 10.2 | % | 10.4 | 10.8 | |||||
Net realized and unrealized losses (gains), before tax | 3.1 | (0.4 | ) | 0.3 | |||||
Tax on net realized and unrealized losses (gains) | (0.8 | ) | 0.2 | (0.1 | ) | ||||
Net realized and unrealized losses (gains) | 2.3 | (0.2 | ) | 0.2 | |||||
Tax Reform impact | — | 1.2 | — | ||||||
Non-GAAP operating ROE | 12.5 | % | 11.4 | 11.0 |
ROE Components | 2018 | 2017 | Change Points | 2016 | Change Points | ||||||||||
Standard Commercial Lines Segment | 4.9 | % | 6.1 | (1.2 | ) | 6.4 | (0.3 | ) | |||||||
Standard Personal Lines Segment | 0.6 | 0.4 | 0.2 | 0.6 | (0.2 | ) | |||||||||
E&S Lines Segment | — | (0.3 | ) | 0.3 | (0.3 | ) | — | ||||||||
Total insurance operations | 5.5 | 6.2 | (0.7 | ) | 6.7 | (0.5 | ) | ||||||||
Investment income | 9.2 | 7.3 | 1.9 | 6.7 | 0.6 | ||||||||||
Net realized and unrealized (losses) gains | (2.3 | ) | 0.2 | (2.5 | ) | (0.2 | ) | 0.4 | |||||||
Total investments segment | 6.9 | 7.5 | (0.6 | ) | 6.5 | 1.0 | |||||||||
Tax Reform impact | — | (1.2 | ) | 1.2 | — | (1.2 | ) | ||||||||
Other | (2.2 | ) | (2.1 | ) | (0.1 | ) | (2.4 | ) | 0.3 | ||||||
ROE | 10.2 | % | 10.4 | (0.2 | ) | 10.8 | (0.4 | ) |
All Lines | 2018 vs. 2017 | 2017 vs. 2016 | ||||||||||||||||
($ in thousands) | 2018 | 2017 | 2016 | |||||||||||||||
Insurance Operations Results: | ||||||||||||||||||
Net premiums written ("NPW") | $ | 2,514,286 | 2,370,641 | 6 | % | $ | 2,237,288 | 6 | % | |||||||||
Net premiums earned ("NPE") | 2,436,229 | 2,291,027 | 6 | 2,149,572 | 7 | |||||||||||||
Less: | ||||||||||||||||||
Loss and loss expense incurred | 1,498,134 | 1,345,074 | 11 | 1,234,797 | 9 | |||||||||||||
Net underwriting expenses incurred | 808,939 | 786,983 | 3 | 759,194 | 4 | |||||||||||||
Dividends to policyholders | 7,983 | 4,634 | 72 | 3,648 | 27 | |||||||||||||
Underwriting income | $ | 121,173 | 154,336 | (21 | ) | % | $ | 151,933 | 2 | % | ||||||||
Combined Ratios: | ||||||||||||||||||
Loss and loss expense ratio | 61.5 | % | 58.7 | 2.8 | pts | 57.4 | % | 1.3 | pts | |||||||||
Underwriting expense ratio | 33.2 | 34.4 | (1.2 | ) | 35.3 | (0.9 | ) | |||||||||||
Dividends to policyholders ratio | 0.3 | 0.2 | 0.1 | 0.2 | — | |||||||||||||
Combined ratio | 95.0 | 93.3 | 1.7 | 92.9 | 0.4 |
($ in millions) | Non-Catastrophe Property Losses | Catastrophe Losses | ||||||||||||||||
For the year ended December 31, | Loss Incurred | Impact on Loss and Loss Expense Ratio | Loss and Loss Expense Incurred | Impact on Loss and Loss Expense Ratio | Total Impact on Loss and Loss Expense Ratio | (Favorable)/Unfavorable Change in Ratio | ||||||||||||
2018 | $ | 361.5 | 14.8 | pts | $ | 88.0 | 3.6 | pts | 18.4 | 2.2 | ||||||||
2017 | 303.7 | 13.3 | 67.3 | 2.9 | 16.2 | 0.4 | ||||||||||||
2016 | 279.2 | 13.0 | 59.7 | 2.8 | 15.8 | (0.5 | ) |
($ in millions) | Favorable Prior Year Casualty Reserve Development | |||||||
For the year ended December 31, | Loss and Loss Expense Incurred | Impact on Loss and Loss Expense Ratio | (Favorable)/Unfavorable Change in Ratio | |||||
2018 | (41.5 | ) | (1.7 | ) | pts | 0.4 | ||
2017 | (48.6 | ) | (2.1 | ) | 1.1 | |||
2016 | (69.0 | ) | (3.2 | ) | 0.2 |
(Favorable)/Unfavorable Prior Year Casualty Reserve Development | |||||||||
($ in millions) | 2018 | 2017 | 2016 | ||||||
General liability | $ | (9.5 | ) | (48.3 | ) | (45.0 | ) | ||
Commercial automobile | 37.5 | 36.0 | 25.0 | ||||||
Workers compensation | (83.0 | ) | (52.3 | ) | (56.0 | ) | |||
Businessowners' policies | (3.0 | ) | — | 0.5 | |||||
Other | — | (2.0 | ) | (2.0 | ) | ||||
Total Standard Commercial Lines | (58.0 | ) | (66.6 | ) | (77.5 | ) | |||
Homeowners | 1.5 | 1.0 | 1.5 | ||||||
Personal automobile | 3.0 | 7.0 | 1.0 | ||||||
Total Standard Personal Lines | 4.5 | 8.0 | 2.5 | ||||||
E&S | 12.0 | 10.0 | 6.0 | ||||||
Total (favorable) prior year casualty reserve development | $ | (41.5 | ) | (48.6 | ) | (69.0 | ) | ||
(Favorable) impact on loss ratio | (1.7 | ) | pts | (2.1 | ) | (3.2 | ) |
• | A 0.5-point decrease in employee-related expenses, reflecting reduced labor expenses associated with productivity gains from the growth of our business, coupled with lower pension and medical benefit costs; and |
• | A 0.3-point decrease in profit-based compensation to our distribution partners, driven by the higher combined ratio, resulting in a reduced level of underwriting income. |
• | A 0.7-point decrease in employee-related expenses, including 0.4 points from labor expenses and 0.3 points from pension expenses; and |
• | A 0.5-point decrease in commissions to our distribution partners in 2017 due to lower supplemental commission |
• | Achieving written renewal pure price increases that match or exceed estimated loss inflation trends. |
• | Delivering on our strategy for continued disciplined growth, which will be driven by the addition of new agents, greater share of wallet in our agents’ offices, and geographic expansion. Our longer-term Standard Commercial Lines target is to attain a 3% market share in the states in which we operate, by appointing partner relationships approximating 25% of their markets and seeking an average share of wallet of 12% across the relationships. This goal represents an additional premium opportunity in excess of $2.3 billion in our pre-expansion state footprint. |
• | Continuing to enhance our customer experience strategy including value-added technologies and services such as our “Selective® Drive” program, which was introduced to our commercial automobile policyholders in the fourth quarter of 2018. This product assists with logistics management and improved safety by tracking and scoring individual drivers based on certain driving attributes, including phone usage while the vehicle is in motion. |
• | Improving profitability in our commercial automobile line of business, personal automobile line of business and E&S Lines. |
• | Actively managing the investment portfolio to enhance after-tax yields while managing credit, duration, and liquidity risk. |
• | A GAAP combined ratio, excluding catastrophe losses, of 92.0%. This assumes no prior-year casualty reserve development; |
• | Catastrophe losses of 3.5 points; |
• | After-tax net investment income of $175 million, which includes $8 million after-tax net investment income from our alternative investments; |
• | An overall effective tax rate of approximately 19%, which also includes an effective tax rate of 18% for net investment income, reflecting a tax rate of 5.25% for tax-advantaged municipal bonds, and a tax rate of 21% for all other items; and |
• | Weighted average shares outstanding of 60 million on a diluted basis. |
2018 vs. 2017 | 2017 vs. 2016 | |||||||||||||||||
($ in thousands) | 2018 | 2017 | 2016 | |||||||||||||||
Insurance Segments Results: | ||||||||||||||||||
NPW | $ | 1,975,683 | 1,858,735 | 6 | % | $ | 1,745,782 | 6 | % | |||||||||
NPE | 1,912,222 | 1,788,499 | 7 | 1,665,483 | 7 | |||||||||||||
Less: | ||||||||||||||||||
Loss and loss expense incurred | 1,141,038 | 1,008,150 | 13 | 913,506 | 10 | |||||||||||||
Net underwriting expenses incurred | 654,097 | 626,201 | 4 | 601,894 | 4 | |||||||||||||
Dividends to policyholders | 7,983 | 4,634 | 72 | 3,648 | 27 | |||||||||||||
Underwriting income | $ | 109,104 | 149,514 | (27 | ) | % | $ | 146,435 | 2 | % | ||||||||
Combined Ratios: | ||||||||||||||||||
Loss and loss expense ratio | 59.7 | % | 56.3 | 3.4 | pts | 54.8 | % | 1.5 | pts | |||||||||
Underwriting expense ratio | 34.2 | 35.0 | (0.8 | ) | 36.2 | (1.2 | ) | |||||||||||
Dividends to policyholders ratio | 0.4 | 0.3 | 0.1 | 0.2 | 0.1 | |||||||||||||
Combined ratio | 94.3 | 91.6 | 2.7 | 91.2 | 0.4 |
For the Year Ended December 31, | |||||||||||
($ in millions) | 2018 | 2017 | 2016 | ||||||||
Retention | 83 | % | 83 | 83 | |||||||
Renewal pure price increases on NPW | 3.5 | 2.9 | 2.6 | ||||||||
Direct new business | $ | 381.2 | 368.2 | 357.6 |
($ in millions) | Non-Catastrophe Property Losses | Catastrophe Losses | |||||||||||||||||
For the year ended December 31, | Losses Incurred | Impact on Loss and Loss Expense Ratio | Loss and Loss Expense Incurred | Impact on Loss and Loss Expense Ratio | Total Impact on Loss and Loss Expense Ratio | Unfavorable Year-Over-Year Change | |||||||||||||
2018 | $ | 245.5 | 12.8 | pts | $ | 64.3 | 3.4 | pts | 16.2 | 2.5 | |||||||||
2017 | 204.9 | 11.5 | 40.0 | 2.2 | 13.7 | 0.6 | |||||||||||||
2016 | 182.4 | 11.0 | 35.0 | 2.1 | 13.1 | 0.8 |
($ in millions) | |||||||||||
(Favorable) Prior Year Casualty Reserve Development | Unfavorable Year-Over-Year Change | ||||||||||
For the year ended December 31, | Loss and Loss Expense Incurred | Impact on Loss and Loss Expense Ratio | |||||||||
2018 | $ | (58.0 | ) | (3.0 | ) | pts | 0.7 | ||||
2017 | (66.6 | ) | (3.7 | ) | 1.0 | ||||||
2016 | (77.5 | ) | (4.7 | ) | 0.6 |
• | Decreases in employee-related expenses of 0.4 points in 2018 and 0.7 points in 2017, mainly attributable to lower pension, medical benefit, and labor costs; |
• | Decreases in profit-based compensation to our distribution partners of 0.2 points in 2018 and 0.3 points in 2017. |
General Liability | ||||||||||||||||||
($ in thousands) | 2018 | 2017 | 2018 vs. 2017 | 2016 | 2017 vs. 2016 | |||||||||||||
NPW | $ | 639,720 | 594,816 | 8 | % | $ | 553,579 | 7 | % | |||||||||
Direct new business | 112,683 | 110,069 | 2 | 105,961 | 4 | |||||||||||||
Retention | 83 | % | 83 | — | pts | 83 | % | — | pts | |||||||||
Renewal pure price increases | 2.6 | 2.6 | — | 1.8 | 0.8 | |||||||||||||
NPE | $ | 616,187 | 569,217 | 8 | % | $ | 527,859 | 8 | % | |||||||||
Underwriting income | 70,268 | 98,229 | (28 | ) | 79,120 | 24 | ||||||||||||
Combined ratio | 88.6 | 82.7 | 5.9 | 85.0 | (2.3 | ) | ||||||||||||
% of total standard commercial NPW | 32 | 32 | 32 |
($ in millions) | (Favorable)/Unfavorable Prior Year Casualty Reserve Development | (Favorable)/Unfavorable Year-Over-Year Change | |||||||||
For the year ended December 31, | Loss and Loss Expense Incurred | Impact on Loss and Loss Expense Ratio | |||||||||
2018 | $ | (9.5 | ) | (1.5 | ) | pts | 7.0 | ||||
2017 | (48.3 | ) | (8.5 | ) | — | ||||||
2016 | (45.0 | ) | (8.5 | ) | 2.1 |
• | 2018: 1.5 points attributable to lower than expected loss adjustment expenses in accident years 2013 through 2017, partially offset by higher than expected loss emergence in accident years 2016 and 2017. |
• | 2017: 8.5 points attributable to decreases in accident years 2016 and prior, driven by lower than expected frequencies and severities. |
• | 2016: 8.5 points attributable to accident years 2008 through 2013 and 2015. This was primarily driven by lower than anticipated claims severities. |
Commercial Automobile | ||||||||||||||||||
2018 vs. 2017 | 2017 vs. 2016 | |||||||||||||||||
($ in thousands) | 2018 | 2017 | 2016 | |||||||||||||||
NPW | $ | 518,942 | 465,621 | 11 | % | $ | 422,013 | 10 | % | |||||||||
Direct new business | 94,442 | 78,869 | 20 | 77,255 | 2 | |||||||||||||
Retention | 83 | % | 84 | (1 | ) | pts | 84 | % | — | pts | ||||||||
Renewal pure price increases | 7.3 | 6.7 | 0.6 | 4.9 | 1.8 | |||||||||||||
NPE | $ | 493,093 | 442,818 | 11 | % | $ | 398,942 | 11 | % | |||||||||
Underwriting loss | (77,403 | ) | (65,267 | ) | (19 | ) | (43,163 | ) | (51 | ) | ||||||||
Combined ratio | 115.7 | 114.7 | 1.0 | 110.8 | 3.9 | |||||||||||||
% of total standard commercial NPW | 26 | 25 | 24 |
($ in millions) | Non-Catastrophe Property Losses | Catastrophe Losses | |||||||||||||||||
For the year ended December 31, | Losses Incurred | Impact on Loss and Loss Expense Ratio | Loss and Loss Expense Incurred | Impact on Loss and Loss Expense Ratio | Total Impact on Loss and Loss Expense Ratio | Unfavorable/(Favorable) Year-Over-Year Change | |||||||||||||
2018 | $ | 84.3 | 17.1 | pts | $ | 2.9 | 0.6 | pts | 17.7 | 1.2 | |||||||||
2017 | 71.3 | 16.1 | 1.8 | 0.4 | 16.5 | 0.1 | |||||||||||||
2016 | 64.4 | 16.1 | 1.3 | 0.3 | 16.4 | 1.0 |
($ in millions) | (Favorable)/Unfavorable Prior Year Casualty Reserve Development | (Favorable)/Unfavorable Year-Over-Year Change | |||||||||
For the year ended December 31, | Loss and Loss Expense Incurred | Impact on Loss and Loss Expense Ratio | |||||||||
2018 | $ | 37.5 | 7.6 | pts | (0.5 | ) | |||||
2017 | 36.0 | 8.1 | 1.8 | ||||||||
2016 | 25.0 | 6.3 | 5.5 |
• | 2018: Unfavorable development of 7.6 points, which was driven primarily by higher than expected severities in accident years 2015 through 2017. |
• | 2017: Unfavorable development of 8.1 points, which was driven primarily by: (i) higher than expected frequencies and severities in accident years 2015 and 2016; and (ii) higher than expected severities in accident years 2012 through 2014. |
• | 2016: Unfavorable development of 6.3 points, which was driven primarily by bodily injury liability for accident years 2014 and 2015. The unfavorable development in accident year 2014 was driven by higher than expected severity, whereas accident year 2015 was driven by higher than expected frequency and severity. |
Workers Compensation | ||||||||||||||||||
2018 vs. 2017 | 2017 vs. 2016 | |||||||||||||||||
($ in thousands) | 2018 | 2017 | 2016 | |||||||||||||||
NPW | $ | 316,647 | 323,263 | (2 | ) | % | $ | 319,807 | 1 | % | ||||||||
Direct new business | 60,089 | 66,616 | (10 | ) | 67,102 | (1 | ) | |||||||||||
Retention | 84 | % | 84 | — | pts | 84 | % | — | pts | |||||||||
Renewal pure price (decreases) increases | (0.2 | ) | — | (0.2 | ) | 1.2 | (1.2 | ) | ||||||||||
NPE | $ | 317,616 | 317,982 | — | % | $ | 308,233 | 3 | % | |||||||||
Underwriting income | 94,395 | 61,693 | 53 | 56,118 | 10 | |||||||||||||
Combined ratio | 70.3 | 80.6 | (10.3 | ) | 81.8 | (1.2 | ) | |||||||||||
% of total standard commercial NPW | 16 | 17 | 18 |
($ in millions) | |||||||||||
(Favorable) Prior Year Casualty Reserve Development | (Favorable)/Unfavorable Year-Over-Year Change | ||||||||||
For the year ended December 31, | Loss and Loss Expense Incurred | Impact on Loss and Loss Expense Ratio | |||||||||
2018 | $ | (83.0 | ) | (26.1 | ) | pts | (9.7 | ) | |||
2017 | (52.3 | ) | (16.4 | ) | 1.8 | ||||||
2016 | (56.0 | ) | (18.2 | ) | (5.4 | ) |
Commercial Property | ||||||||||||||||||
2018 vs. 2017 | 2017 vs. 2016 | |||||||||||||||||
($ in thousands) | 2018 | 2017 | 2016 | |||||||||||||||
NPW | $ | 342,027 | 322,343 | 6 | % | $ | 308,140 | 5 | % | |||||||||
Direct new business | 76,391 | 73,951 | 3 | 74,901 | (1 | ) | ||||||||||||
Retention | 82 | % | 82 | — | pts | 82 | % | — | pts | |||||||||
Renewal pure price increases | 3.1 | 1.7 | 1.4 | 2.4 | (0.7 | ) | ||||||||||||
NPE | $ | 329,660 | 311,932 | 6 | % | $ | 293,438 | 6 | % | |||||||||
Underwriting (loss) income | (3,211 | ) | 31,976 | (110 | ) | 42,270 | (24 | ) | ||||||||||
Combined ratio | 101.0 | 89.7 | 11.3 | 85.6 | 4.1 | |||||||||||||
% of total standard commercial NPW | 17 | 17 | 18 |
($ in millions) | Non-Catastrophe Property Losses | Catastrophe Losses | Unfavorable/(Favorable) Year-Over-Year Change | ||||||||||||||
For the year ended December 31, | Losses Incurred | Impact on Loss and Loss Expense Ratio | Loss and Loss Expense Incurred | Impact on Loss and Loss Expense Ratio | Total Impact on Loss and Loss Expense Ratio | ||||||||||||
2018 | $ | 136.7 | 41.5 | pts | $ | 51.7 | 15.7 | pts | 57.2 | 11.1 | |||||||
2017 | 109.5 | 35.1 | 34.2 | 11.0 | 46.1 | 5.3 | |||||||||||
2016 | 95.9 | 32.7 | 23.7 | 8.1 | 40.8 | 2.1 |
2018 vs. 2017 | 2017 vs. 2016 | |||||||||||||||||
($ in thousands) | 2018 | 2017 | 2016 | |||||||||||||||
Insurance Segments Results: | ||||||||||||||||||
NPW | $ | 309,277 | 296,775 | 4 | % | $ | 281,822 | 5 | % | |||||||||
NPE | 304,441 | 289,701 | 5 | 280,607 | 3 | |||||||||||||
Less: | ||||||||||||||||||
Loss and loss expense incurred | 206,752 | 189,294 | 9 | 177,749 | 6 | |||||||||||||
Net underwriting expenses incurred | 84,925 | 89,303 | (5 | ) | 90,439 | (1 | ) | |||||||||||
Underwriting income | $ | 12,764 | 11,104 | 15 | % | $ | 12,419 | (11 | ) | % | ||||||||
Combined Ratios: | ||||||||||||||||||
Loss and loss expense ratio | 67.9 | % | 65.4 | 2.5 | pts | 63.3 | % | 2.1 | pts | |||||||||
Underwriting expense ratio | 27.9 | 30.8 | (2.9 | ) | 32.3 | (1.5 | ) | |||||||||||
Combined ratio | 95.8 | 96.2 | (0.4 | ) | 95.6 | 0.6 |
($ in millions) | 2018 | 2017 | 2016 | ||||||||
Retention | 84 | % | 84 | 82 | |||||||
Renewal pure price increases on NPW | 3.8 | 3.0 | 4.8 | ||||||||
Direct new business premiums | $ | 51.5 | 50.9 | 39.7 |
($ in millions) | Non-Catastrophe Property Losses | Catastrophe Losses | |||||||||||||||||
For the year ended December 31, | Losses Incurred | Impact on Loss and Loss Expense Ratio | Loss and Loss Expense Incurred | Impact on Loss and Loss Expense Ratio | Total Impact on Loss and Loss Expense Ratio | Unfavorable/(Favorable) Year-Over-Year Change | |||||||||||||
2018 | $ | 91.5 | 30.1 | pts | $ | 17.5 | 5.7 | pts | 35.8 | 3.9 | |||||||||
2017 | 76.2 | 26.3 | 16.1 | 5.6 | 31.9 | — | |||||||||||||
2016 | 71.2 | 25.4 | 18.2 | 6.5 | 31.9 | (5.9 | ) |
($ in millions) | |||||||||||
(Favorable)/Unfavorable Prior Year Casualty Reserve Development | (Favorable)/Unfavorable Year-Over-Year Change | ||||||||||
For the year ended December 31, | Loss and Loss Expense Incurred | Impact on Loss and Loss Expense Ratio | |||||||||
2018 | $ | 4.5 | 1.5 | pts | (1.3 | ) | |||||
2017 | 8.0 | 2.8 | 1.9 | ||||||||
2016 | 2.5 | 0.9 | 1.6 |
($ in thousands) | 2018 | 2017 | 2018 vs. 2017 | 2016 | 2017 vs. 2016 | |||||||||||||
Insurance Segments Results: | ||||||||||||||||||
NPW | $ | 229,326 | 215,131 | 7 | % | $ | 209,684 | 3 | % | |||||||||
NPE | 219,566 | 212,827 | 3 | 203,482 | 5 | |||||||||||||
Less: | ||||||||||||||||||
Loss and loss expense incurred | 150,344 | 147,630 | 2 | 143,542 | 3 | |||||||||||||
Net underwriting expenses incurred | 69,917 | 71,479 | (2 | ) | 66,861 | 7 | ||||||||||||
Underwriting loss | $ | (695 | ) | (6,282 | ) | 89 | % | $ | (6,921 | ) | 9 | % | ||||||
Combined Ratios: | ||||||||||||||||||
Loss and loss expense ratio | 68.5 | % | 69.4 | (0.9 | ) | pts | 70.5 | % | (1.1 | ) | pts | |||||||
Underwriting expense ratio | 31.8 | 33.6 | (1.8 | ) | 32.9 | 0.7 | ||||||||||||
Combined ratio | 100.3 | 103.0 | (2.7 | ) | 103.4 | (0.4 | ) |
($ in millions) | 2018 | 2017 | 2016 | ||||||
Overall renewal price increases1 | 4.7 | % | 5.0 | 6.1 | |||||
Direct new business premiums | $ | 98.0 | 90.5 | 100.0 |
($ in millions) | Non-Catastrophe Property Losses | Catastrophe Losses | |||||||||||||||||
For the year ended December 31, | Losses Incurred | Impact on Loss and Loss Expense Ratio | Loss and Loss Expense Incurred | Impact on Loss and Loss Expense Ratio | Total Impact on Loss and Loss Expense Ratio | (Favorable)/Unfavorable Year-Over-Year Change | |||||||||||||
2018 | $ | 24.5 | 11.2 | pts | $ | 6.2 | 2.8 | pts | 14.0 | (1.9 | ) | ||||||||
2017 | 22.6 | 10.6 | 11.2 | 5.3 | 15.9 | 0.1 | |||||||||||||
2016 | 25.6 | 12.6 | 6.5 | 3.2 | 15.8 | 0.2 |
($ in millions) | Unfavorable Prior Year Casualty Reserve Development | Unfavorable/(Favorable) Year-Over-Year Change | |||||||||
For the year ended December 31, | Loss and Loss Expense Incurred | Impact on Loss and Loss Expense Ratio | |||||||||
2018 | $ | 12.0 | 5.5 | pts | 0.8 | ||||||
2017 | 10.0 | 4.7 | 1.8 | ||||||||
2016 | 6.0 | 2.9 | (6.4 | ) |
• | Pool or share proportionately the underwriting profit and loss results of property and casualty insurance underwriting operations through reinsurance; |
• | Prevent any of our Insurance Subsidiaries from suffering undue loss; |
• | Reduce administration expenses; and |
• | Permit all of the Insurance Subsidiaries to obtain a uniform rating from A.M. Best. |
Insurance Subsidiary | Pooling Percentage | |
Selective Insurance Company of America ("SICA") | 32.0% | |
Selective Way Insurance Company ("SWIC") | 21.0% | |
Selective Insurance Company of South Carolina ("SICSC") | 9.0% | |
Selective Insurance Company of the Southeast ("SICSE") | 7.0% | |
Selective Insurance Company of New York ("SICNY") | 7.0% | |
Selective Casualty Insurance Company ("SCIC") | 7.0% | |
Selective Auto Insurance Company of New Jersey ("SAICNJ") | 6.0% | |
Mesa Underwriters Specialty Insurance Company ("MUSIC") | 5.0% | |
Selective Insurance Company of New England ("SICNE") | 3.0% | |
Selective Fire and Casualty Insurance Company ("SFCIC") | 3.0% |
• | Property Reinsurance - includes our property excess of loss treaties purchased for protection against large individual property losses and our property catastrophe treaties purchased to provide protection for the overall property portfolio against severe catastrophic events. Facultative reinsurance is used for property risks that are in excess of our treaty capacity. |
• | Casualty Reinsurance - purchased to provide protection for both individual large casualty losses and catastrophic casualty losses involving multiple claimants or customers. Facultative reinsurance is also used for casualty risks that are in excess of our treaty capacity. |
• | Terrorism Reinsurance - in addition to protection built into our property and casualty reinsurance treaties, terrorism protection is available as a federal backstop related to terrorism losses as provided under the Terrorism Risk Insurance Program Reauthorization Act (“TRIPRA”). For further information regarding this legislation, see Item 1A. “Risk Factors.” of this Form 10-K. |
• | Flood Reinsurance - as a servicing carrier in the WYO, we receive a fee for writing flood business, for which the related premiums and losses are 100% ceded to the federal government. |
($ in millions) | Actual Gross Loss | Net Loss2 | Accident Year | |||
Hurricane Name | ||||||
Superstorm Sandy | 125.5 1 | 45.6 | 2012 | |||
Hurricane Irene | 44.9 | 40.2 | 2011 | |||
Hurricane Hugo | 26.4 | 3.0 | 1989 | |||
Hurricane Isabel | 25.1 | 15.7 | 2003 | |||
Hurricane Florence | 16.7 | 16.7 | 2018 |
Occurrence Exceedence Probability | Four-Model Blend | |||||
($ in thousands) | Gross Losses1 | Net Losses2 | Net Losses as a Percent of Equity3 | |||
4.0% (1 in 25 year event) | $147,275 | 34,328 | 2% | |||
2.0% (1 in 50 year event) | 263,861 | 36,980 | 2 | |||
1.0% (1 in 100 year event) | 454,874 | 43,478 | 2 | |||
0.67% (1 in 150 year event) | 611,398 | 50,769 | 3 | |||
0.5% (1 in 200 year event) | 727,506 | 58,026 | 3 | |||
0.4% (1 in 250 year event) | 815,992 | 94,044 | 5 | |||
0.2% (1 in 500 year event) | 1,215,882 | 402,226 | 22 |
PROPERTY REINSURANCE ON INSURANCE PRODUCTS | ||||
Treaty Name | Reinsurance Coverage | Terrorism Coverage | ||
Property Catastrophe Excess of Loss (covers all insurance operations) | $735 million above $40 million retention treaty that responds on per occurrence basis in four layers: | All nuclear, biological, chemical, and radioactive ("NBCR") losses are excluded regardless of whether or not they are certified under TRIPRA. Non-NBCR losses are covered to the same extent as non-terrorism losses. Please see Item 1A. “Risk Factors.” of this Form 10-K for discussion regarding TRIPRA. | ||
- 82% of losses in excess of $40 million up to $100 million; | ||||
- 97% of losses in excess of $100 million up to $225 million; | ||||
- 97% of losses in excess of $225 million up to $475 million; and | ||||
- 90% of losses in excess of $475 million up to $775 million. | ||||
- The treaty provides one reinstatement in each of the first three layers and no reinstatement in the fourth layer. The annual aggregate limit is $1.1 billion, net of the Insurance Subsidiaries' co-participation. | ||||
In addition, our $35 million above $5 million retention treaty that responds on per occurrence basis covers 85% of losses outside of our standard lines original 22-state footprint and has an annual aggregate limit of $30 million, net of the Insurance Subsidiaries' co-participation. This layer was purchased primarily to protect the growth of our E&S property book but also provides coverage for our Standard Lines expansion states. | ||||
Property Excess of Loss (covers all insurance operations) | $58 million above $2 million retention covering 100% in three layers. Losses other than TRIPRA certified losses are subject to the following reinstatements and annual aggregate limits: | All NBCR losses are excluded regardless of whether or not they are certified under TRIPRA. For non-NBCR losses, the treaty distinguishes between acts committed on behalf of foreign persons or foreign interests ("Foreign Terrorism") and those that are not. The treaty provides annual aggregate limits for Foreign Terrorism (other than NBCR) acts of $24 million for the first layer and $60 million for the second layer and for the third layer approximately $35 million in annual aggregate limits. Non-foreign terrorism losses (other than NBCR) are covered to the same extent as non-terrorism losses. | ||
- $8 million in excess of $2 million layer provides unlimited reinstatements; | ||||
- $30 million in excess of $10 million layer provides three reinstatements, $120 million in aggregate limits; and | ||||
- $20 million in excess of $40 million layer provides approximately $75 million in aggregate limits. | ||||
Flood | 100% reinsurance by the federal government’s WYO. | None |
CASUALTY REINSURANCE ON INSURANCE PRODUCTS | ||||
Treaty Name | Reinsurance Coverage | Terrorism Coverage | ||
Casualty Excess of Loss (covers all insurance operations) | There are six layers covering 100% of $88 million in excess of $2 million. Losses other than terrorism losses are subject to the following reinstatements and annual aggregate limits: | All NBCR losses are excluded. All other losses stemming from the acts of terrorism are subject to the following reinstatements and annual aggregate limits: | ||
- $3 million in excess of $2 million layer with $78 million annual aggregate limit; | - $3 million in excess of $2 million layer with $15 million net annual terrorism aggregate limit; | |||
- $7 million in excess of $5 million layer with $35 million annual aggregate limit; | - $7 million in excess of $5 million layer with $28 million net annual terrorism aggregate limit; | |||
- $9 million in excess of $12 million layer with $27 million annual aggregate limit; | - $9 million in excess of $12 million layer with $27 million net annual terrorism aggregate limit; | |||
- $9 million in excess of $21 million layer with $18 million annual aggregate limit; | - $9 million in excess of $21 million layer with $18 million net annual terrorism aggregate limit; | |||
- $20 million in excess of $30 million layer with $40 million annual aggregate limit; and | - $20 million in excess of $30 million layer with $40 million net annual terrorism aggregate limit; and | |||
- $40 million in excess of $50 million layer with $80 million annual aggregate limit. | - $40 million in excess of $50 million layer with $80 million net annual terrorism aggregate limit. | |||
Endurance Specialty Quota Share and Loss Development Cover (covers E&S Lines) | As part of the acquisition of MUSIC we entered into several reinsurance agreements that together provide protection for losses on policies written prior to the acquisition and any development on reserves established by MUSIC as of the date of acquisition. The reinsurance recoverables under these treaties are 100% collateralized. Montpelier Re was acquired by Endurance Specialty on December 29, 2015. On March 28, 2017, Endurance Specialty was acquired by SOMPO Holdings, Inc. | Provides full terrorism coverage including NBCR. |
($ in thousands) | 2018 | 2017 | Change | |||||||
Total invested assets | $ | 5,960,651 | 5,685,179 | 5 | % | |||||
Invested assets per dollar of stockholders' equity | 3.33 | 3.32 | 0.3 | |||||||
Unrealized gain – before tax1 | 11,916 | 124,679 | (90 | ) | ||||||
Unrealized gain – after tax1 | 9,414 | 80,575 | (88 | ) |
Contractual Maturities | ||||||||||
($ in thousands) | ||||||||||
AFS fixed income securities: | Amortized Cost | Fair Value | Unrealized Loss | |||||||
One year or less | $ | 142,988 | 142,368 | (620 | ) | |||||
Due after one year through five years | 1,197,396 | 1,182,423 | (14,973 | ) | ||||||
Due after five years through ten years | 1,021,110 | 998,637 | (22,473 | ) | ||||||
Due after ten years | 101,180 | 94,179 | (7,001 | ) | ||||||
Total | $ | 2,462,674 | 2,417,607 | (45,067 | ) |
($ in thousands) | 2018 | 2017 | 2018 vs. 2017 | 2016 | 2017 vs. 2016 | ||||||||||||
Fixed income securities | $ | 178,104 | 153,230 | 16 | % | 129,306 | 19 | % | |||||||||
Equity securities | 7,764 | 6,442 | 21 | 7,368 | (13 | ) | |||||||||||
Short-term investments | 3,472 | 1,526 | 128 | 686 | 122 | ||||||||||||
Other investments | 17,799 | 12,871 | 38 | 2,940 | 338 | ||||||||||||
Investment expenses | (11,803 | ) | (12,187 | ) | 3 | (9,546 | ) | (28 | ) | ||||||||
Net investment income earned – before tax | 195,336 | 161,882 | 21 | 130,754 | 24 | ||||||||||||
Net investment income tax expense | 34,855 | 43,362 | (20 | ) | 32,349 | 34 | |||||||||||
Net investment income earned – after tax | $ | 160,481 | 118,520 | 35 | 98,405 | 20 | |||||||||||
Effective tax rate | 17.8 | % | 26.8 | (9.0 | ) | pts | 24.7 | 2.1 | pts | ||||||||
Annual after-tax yield on fixed income securities | 2.8 | 2.2 | 0.6 | 2.0 | 0.2 | ||||||||||||
Annual after-tax yield on investment portfolio | 2.8 | 2.1 | 0.7 | 1.9 | 0.2 |
($ in thousands) | 2018 | 2017 | 2016 | |||||||
Net realized (losses) gains, excluding OTTI | $ | (18,975 | ) | 11,204 | 3,562 | |||||
OTTI | (6,579 | ) | (4,845 | ) | (8,499 | ) | ||||
Unrealized losses recognized in income on equity securities | (29,369 | ) | — | — | ||||||
Total net realized (losses) gains | $ | (54,923 | ) | 6,359 | (4,937 | ) |
• | A change in accounting guidance that became effective on January 1, 2018 requiring that the fluctuation in the market value of our equity securities be recognized in earnings. These unrealized losses amounted to $29.4 million in 2018. For additional information regarding this change in accounting, see Note 3. "Adoption of Accounting Pronouncements in Item 8. "Financial Statements and Supplementary Data." of this Form 10-K. |
• | A higher trading volume driven by opportunistic sales, with net losses primarily in our fixed income securities portfolio as we reacted to volatility in the marketplace to increase our risk-adjusted yield. |
($ in millions) | 2018 | 2017 | 2016 | |||||||
Federal income tax expense | $ | 32.8 | 93.1 | 61.5 | ||||||
Exclude: Tax Reform impact 1 | — | 20.2 | — | |||||||
Federal income tax expense, excluding Tax Reform impact | 32.8 | 72.9 | 61.5 | |||||||
Statutory Tax Rate | 21.0 | % | 35.0 | 35.0 | ||||||
Effective tax rate | 15.5 | % | 35.6 | 27.9 | ||||||
Effective tax rate without Tax Reform impact | 15.5 | 27.8 | 27.9 |
Branch | Insurance Subsidiary Member | ||||||||
Federal Home Loan Bank of Indianapolis ("FHLBI") | SICSC1 | ||||||||
SICSE1 | |||||||||
Federal Home Loan Bank of New York ("FHLBNY") | SICA | ||||||||
SICNY | |||||||||
1These subsidiaries are jointly referred to as the "Indiana Subsidiaries" as they are domiciled in Indiana. |
($ in millions) | Admitted Assets | Borrowing Limitation | Amount Borrowed | Remaining Capacity | Additional FHLB Stock Requirements | |||||||||||
As of December 31, 2018 | ||||||||||||||||
SICSC | $ | 678.3 | $ | 67.8 | 32.0 | 35.8 | 1.6 | |||||||||
SICSE | 534.3 | 53.4 | 28.0 | 25.4 | 1.1 | |||||||||||
SICA | 2,539.7 | 254.0 | 50.0 | 204.0 | 9.2 | |||||||||||
SICNY | 465.3 | 23.3 | — | 23.3 | 1.0 | |||||||||||
Total | $ | 398.5 | 110.0 | 288.5 | 12.9 |
($ in millions) | Admitted Assets as of December 31, 2018 | Borrowing Limitation | Amount Borrowed | Remaining Capacity | |||||||||
As of December 31, 2018 | |||||||||||||
SICSC | $ | 678.3 | $ | 67.8 | 27.0 | 40.8 | |||||||
SICSE | 534.3 | 53.4 | 18.0 | 35.4 | |||||||||
Total | $ | 121.2 | 45.0 | 76.2 |
Contractual Obligations | Payment Due by Period | |||||||||||||||
Less than 1 year | 1-3 years | 3-5 years | More than 5 years | |||||||||||||
($ in millions) | Total | |||||||||||||||
Operating leases | $ | 36.4 | 7.6 | 12.4 | 6.5 | 9.9 | ||||||||||
Capital leases | 0.8 | 0.7 | 0.1 | — | — | |||||||||||
Notes payable | 445.0 | — | 50.0 | — | 395.0 | |||||||||||
Interest on debt obligations | 453.6 | 23.8 | 47.7 | 46.6 | 335.5 | |||||||||||
Subtotal | 935.8 | 32.1 | 110.2 | 53.1 | 740.4 | |||||||||||
Gross loss and loss expense payments | 3,893.9 | 1,025.6 | 1,222.5 | 605.6 | 1,040.2 | |||||||||||
Ceded loss and loss expense payments | 537.4 | 133.4 | 130.0 | 71.1 | 202.9 | |||||||||||
Net loss and loss expense payments | 3,356.5 | 892.2 | 1,092.5 | 534.5 | 837.3 | |||||||||||
Total | $ | 4,292.3 | 924.3 | 1,202.7 | 587.6 | 1,577.7 |
• | Moody's Investor Service ("Moody's") - Our "A2" financial strength rating with a "stable" outlook was reaffirmed in the first quarter of 2018 by Moody's. In taking this action, Moody's cited our solid risk-adjusted capitalization, strong asset quality, and underwriting profitability, as well as our good regional presence and established independent agency support. |
• | Fitch Ratings ("Fitch") - Our "A+" Rating was reaffirmed in the second quarter of 2018 with a "stable" outlook by Fitch. In taking this action, Fitch cited our strong underwriting results, solid capitalization with growth in stockholders' equity, strong business profile, and stable interest coverage metrics. |
• | S&P Global Ratings ("S&P") - Our "A" rating was reaffirmed in the fourth quarter of 2018 with a "stable" outlook by S&P. In taking this action, S&P cited our improved operating performance in standard lines supported by sophisticated underwriting tools, a strong network of independent agents, and strong capital adequacy. |
2018 Interest Rate Shift in Basis Points | ||||||||||||||||
($ in thousands) | -200 | -100 | 0 | 100 | 200 | |||||||||||
Fixed income securities | ||||||||||||||||
Fair value of fixed income securities portfolio | $ | 5,770,718 | 5,541,486 | 5,311,417 | 5,081,165 | 4,850,756 | ||||||||||
Fair value change | 459,301 | 230,069 | (230,252 | ) | (460,661 | ) | ||||||||||
Fair value change from base (%) | 8.65 | % | 4.33 | % | (4.34 | )% | (8.67 | )% |
December 31, 2018 ($ in millions) | Fair Value | Carry Value | Unrealized/ Unrecognized Gain (Loss) | Weighted Average Credit Quality | ||||||||
U.S. government obligations | $ | 121.3 | 121.3 | 1.2 | AAA | |||||||
Foreign government obligations | 23.1 | 23.1 | (0.1 | ) | A | |||||||
State and municipal obligations | 1,156.4 | 1,156.0 | 17.4 | AA- | ||||||||
Corporate securities | 1,637.8 | 1,637.0 | (21.7 | ) | BBB+ | |||||||
CLO and Other ABS | 717.4 | 717.4 | (2.8 | ) | AA | |||||||
CMBS | 527.1 | 527.1 | (0.3 | ) | AA+ | |||||||
RMBS | 1,128.3 | 1,128.3 | 9.9 | AAA | ||||||||
Total fixed income portfolio | $ | 5,311.4 | 5,310.2 | 3.6 | AA- |
December 31, 2017 ($ in millions) | Fair Value | Carry Value | Unrealized/ Unrecognized Gain (Loss) | Weighted Average Credit Quality | ||||||||
U.S. government obligations | $ | 49.7 | 49.7 | 0.4 | AAA | |||||||
Foreign government obligations | 18.6 | 18.6 | 0.5 | A | ||||||||
State and municipal obligations | 1,609.2 | 1,608.2 | 44.8 | AA | ||||||||
Corporate securities | 1,635.3 | 1,634.4 | 30.0 | BBB+ | ||||||||
CLO and Other ABS | 795.5 | 795.5 | 6.3 | AA | ||||||||
CMBS | 383.4 | 383.4 | 0.7 | AA+ | ||||||||
RMBS | 714.9 | 714.9 | 5.1 | AA+ | ||||||||
Total fixed income portfolio | $ | 5,206.6 | 5,204.7 | 87.8 | AA- |
State Exposures of Municipal Bonds | General Obligation | Special Revenue | Fair Value | Weighted Average Credit Quality | |||||||||||
($ in thousands) | State & Local | % of Total | |||||||||||||
New York | $ | 13,607 | 105,576 | 119,183 | 10% | AA- | |||||||||
California | 37,563 | 78,631 | 116,194 | 10% | AA- | ||||||||||
Texas1 | 50,886 | 38,331 | 89,217 | 8% | AA | ||||||||||
New Jersey | — | 71,721 | 71,721 | 6% | A | ||||||||||
Washington | 28,944 | 33,441 | 62,385 | 5% | AA | ||||||||||
Pennsylvania | — | 44,223 | 44,223 | 4% | AA- | ||||||||||
Florida | 3,223 | 40,131 | 43,354 | 4% | AA- | ||||||||||
Arizona | 5,552 | 40,292 | 45,844 | 4% | AA | ||||||||||
Massachusetts | 860 | 45,239 | 46,099 | 4% | AA | ||||||||||
Ohio | 10,587 | 27,990 | 38,577 | 3% | AA- | ||||||||||
Other | 124,918 | 287,133 | 412,051 | 36% | AA- | ||||||||||
276,140 | 812,708 | 1,088,848 | 94% | AA- | |||||||||||
Pre-refunded/escrowed to maturity bonds | 31,946 | 35,644 | 67,590 | 6% | AAA | ||||||||||
Total | $ | 308,086 | 848,352 | 1,156,438 | 100% | AA- | |||||||||
% of Total Municipal Portfolio | 27 | % | 73 | % | 100 | % |
December 31, 2018 | Fair Value | Carry Value | Unrealized/ Unrecognized Gain (Loss) | Weighted Average Credit Quality | ||||||||
($ in millions) | ||||||||||||
Investment grade | $ | 1,532.6 | 1,531.8 | (14.4 | ) | A- | ||||||
Non-investment grade | 105.2 | 105.2 | (7.2 | ) | B+ | |||||||
Total corporate securities | $ | 1,637.8 | 1,637.0 | (21.6 | ) | BBB+ |
December 31, 2017 | Fair Value | Carry Value | Unrealized/ Unrecognized Gain (Loss) | Weighted Average Credit Quality | ||||||||
($ in millions) | ||||||||||||
Investment grade | $ | 1,505.0 | 1,504.1 | 27.5 | A- | |||||||
Non-investment grade | 130.3 | 130.3 | 2.5 | B | ||||||||
Total corporate securities | $ | 1,635.3 | 1,634.4 | 30.0 | BBB+ |
December 31, 2018 | Fair Value | Carry Value | Unrealized/ Unrecognized Gain (Loss) | Weighted Average Credit Quality | ||||||||
($ in millions) | ||||||||||||
Investment grade: | ||||||||||||
CLO | $ | 462.3 | 462.3 | (5.2 | ) | AA+ | ||||||
Other ABS | 235.0 | 235.0 | 3.2 | AA- | ||||||||
Total investment grade | 697.3 | 697.3 | (2.0 | ) | AA | |||||||
Non-investment grade: | ||||||||||||
CLO | 15.5 | 15.5 | (0.8 | ) | B+ | |||||||
Other ABS | 4.6 | 4.6 | — | B+ | ||||||||
Total non-investment grade | 20.1 | 20.1 | (0.8 | ) | B+ | |||||||
Total CLO and other ABS | $ | 717.4 | 717.4 | (2.8 | ) | AA |
December 31, 2017 | Fair Value | Carry Value | Unrealized/ Unrecognized Gain (Loss) | Weighted Average Credit Quality | ||||||||
($ in millions) | ||||||||||||
Investment grade: | ||||||||||||
CLO | $ | 572.5 | 572.5 | 2.1 | AA+ | |||||||
Other ABS | 202.2 | 202.2 | 2.9 | AA- | ||||||||
Total investment grade | 774.7 | 774.7 | 5.0 | AA+ | ||||||||
Non-investment grade: | ||||||||||||
CLO | 20.8 | 20.8 | 1.3 | BB- | ||||||||
Other ABS | — | — | — | — | ||||||||
Total non-investment grade | 20.8 | 20.8 | 1.3 | BB- | ||||||||
Total CLO and other ABS | $ | 795.5 | 795.5 | 6.3 | AA |
Change in Equity Values in Percent | ||||||||||||||||||||||
($ in thousands) | (30)% | (20)% | (10)% | 0% | 10% | 20% | 30% | |||||||||||||||
Fair value of AFS equity portfolio | $ | 103,347 | 118,111 | 132,875 | 147,639 | 162,403 | 177,167 | 191,931 | ||||||||||||||
Fair value change | (44,292 | ) | (29,528 | ) | (14,764 | ) | 14,764 | 29,528 | 44,292 |
Asset Category | Percentage of Invested Assets | ||
Highly-liquid assets | 75 | % | |
Generally liquid assets, may become less liquid with market stress1 | 22 | ||
Generally illiquid assets2 | 3 | ||
Total | 100 | % |
2018 | |||||||||
($ in thousands) | Year of Maturity | Carrying Amount | Fair Value | ||||||
Financial liabilities | |||||||||
Long-term debt | |||||||||
1.61% Borrowings from FHLBNY | 2021 | $ | 25,000 | 24,218 | |||||
1.56% Borrowings from FHLBNY | 2021 | 25,000 | 24,162 | ||||||
3.03% Borrowings from FHLBI | 2026 | 60,000 | 58,905 | ||||||
7.25% Senior Notes | 2034 | 49,907 | 57,032 | ||||||
6.70% Senior Notes | 2035 | 99,462 | 107,075 | ||||||
5.875% Senior Notes | 2043 | 185,000 | 177,230 | ||||||
Subtotal | 444,369 | 448,622 | |||||||
Unamortized debt issuance costs | (4,829 | ) | |||||||
Total notes payable | $ | 439,540 |
Consolidated Balance Sheets | |||||||
December 31, | |||||||
($ in thousands, except share amounts) | 2018 | 2017 | |||||
ASSETS | |||||||
Investments: | |||||||
Fixed income securities, held-to-maturity – at carrying value (fair value: $38,317 – 2018; $44,100 – 2017) | $ | 37,110 | 42,129 | ||||
Fixed income securities, available-for-sale – at fair value (amortized cost: $5,270,798 – 2018; $5,076,716 – 2017) | 5,273,100 | 5,162,522 | |||||
Equity securities – at fair value (cost: $138,114 – 2018; $143,811 – 2017) | 147,639 | 182,705 | |||||
Short-term investments (at cost which approximates fair value) | 323,864 | 165,555 | |||||
Other investments | 178,938 | 132,268 | |||||
Total investments (Notes 5 and 7) | 5,960,651 | 5,685,179 | |||||
Cash | 505 | 534 | |||||
Restricted cash | 16,414 | 44,176 | |||||
Interest and dividends due or accrued | 41,620 | 40,897 | |||||
Premiums receivable, net of allowance for uncollectible accounts of: $9,400 – 2018; $10,000 – 2017 | 770,518 | 747,029 | |||||
Reinsurance recoverable, net of allowance for uncollectible accounts of: $4,500 – 2018; $4,600 – 2017 (Note 8) | 549,172 | 594,832 | |||||
Prepaid reinsurance premiums (Note 8) | 157,723 | 153,493 | |||||
Current federal income tax (Note 13) | — | 3,243 | |||||
Deferred federal income tax (Note 13) | 53,540 | 31,990 | |||||
Property and equipment – at cost, net of accumulated depreciation and amortization of: $211,657 – 2018; $213,227 – 2017 | 65,248 | 63,959 | |||||
Deferred policy acquisition costs (Note 2) | 252,612 | 235,055 | |||||
Goodwill (Note 11) | 7,849 | 7,849 | |||||
Other assets | 76,877 | 78,195 | |||||
Total assets | $ | 7,952,729 | 7,686,431 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
Liabilities: | |||||||
Reserve for loss and loss expense (Note 9) | $ | 3,893,868 | 3,771,240 | ||||
Unearned premiums | 1,431,932 | 1,349,644 | |||||
Long-term debt (Note 10) | 439,540 | 439,116 | |||||
Current federal income tax (Note 13) | 1,302 | — | |||||
Accrued salaries and benefits | 116,706 | 131,850 | |||||
Other liabilities | 277,579 | 281,624 | |||||
Total liabilities | $ | 6,160,927 | 5,973,474 | ||||
Stockholders’ Equity: | |||||||
Preferred stock of $0 par value per share: | |||||||
Authorized shares 5,000,000; no shares issued or outstanding | $ | — | — | ||||
Common stock of $2 par value per share: | |||||||
Authorized shares 360,000,000 | |||||||
Issued: 102,848,394 – 2018; 102,284,564 – 2017 | 205,697 | 204,569 | |||||
Additional paid-in capital | 390,315 | 367,717 | |||||
Retained earnings | 1,858,414 | 1,698,613 | |||||
Accumulated other comprehensive (loss) income (Note 6) | (77,956 | ) | 20,170 | ||||
Treasury stock – at cost (shares: 43,899,840 – 2018; 43,789,442 – 2017) | (584,668 | ) | (578,112 | ) | |||
Total stockholders’ equity | 1,791,802 | 1,712,957 | |||||
Commitments and contingencies (Notes 17 and 18) | |||||||
Total liabilities and stockholders’ equity | $ | 7,952,729 | 7,686,431 |
Consolidated Statements of Income | ||||||||||
December 31, | ||||||||||
($ in thousands, except per share amounts) | 2018 | 2017 | 2016 | |||||||
Revenues: | ||||||||||
Net premiums earned | $ | 2,436,229 | 2,291,027 | 2,149,572 | ||||||
Net investment income earned | 195,336 | 161,882 | 130,754 | |||||||
Net realized and unrealized (losses) gains: | ||||||||||
Net realized investment (losses) gains on disposals | (18,975 | ) | 11,204 | 3,562 | ||||||
Other-than-temporary impairments | (6,579 | ) | (4,809 | ) | (8,509 | ) | ||||
Other-than-temporary impairments on fixed income securities recognized in other comprehensive income | — | (36 | ) | 10 | ||||||
Net unrealized losses on equity securities | (29,369 | ) | — | — | ||||||
Total net realized and unrealized (losses) gains | (54,923 | ) | 6,359 | (4,937 | ) | |||||
Other income | 9,438 | 10,716 | 8,881 | |||||||
Total revenues | 2,586,080 | 2,469,984 | 2,284,270 | |||||||
Expenses: | ||||||||||
Loss and loss expense incurred | 1,498,134 | 1,345,074 | 1,234,797 | |||||||
Amortization of deferred policy acquisition costs | 495,042 | 469,236 | 450,328 | |||||||
Other insurance expenses | 331,318 | 333,097 | 321,395 | |||||||
Interest expense | 24,419 | 24,354 | 22,771 | |||||||
Corporate expenses | 25,446 | 36,255 | 35,024 | |||||||
Total expenses | 2,374,359 | 2,208,016 | 2,064,315 | |||||||
Income before federal income tax | 211,721 | 261,968 | 219,955 | |||||||
Federal income tax expense: | ||||||||||
Current | 35,012 | 62,184 | 48,581 | |||||||
Deferred | (2,230 | ) | 30,958 | 12,879 | ||||||
Total federal income tax expense | 32,782 | 93,142 | 61,460 | |||||||
Net income | $ | 178,939 | 168,826 | 158,495 | ||||||
Earnings per share: | ||||||||||
Basic net income | $ | 3.04 | 2.89 | 2.74 | ||||||
Diluted net income | $ | 3.00 | 2.84 | 2.70 | ||||||
Consolidated Statements of Comprehensive Income | ||||||||||
December 31, | ||||||||||
($ in thousands) | 2018 | 2017 | 2016 | |||||||
Net income | $ | 178,939 | 168,826 | 158,495 | ||||||
Other comprehensive (loss) income, net of tax: | ||||||||||
Unrealized (losses) gains on investment securities: | ||||||||||
Unrealized holding (losses) gains arising during year | (97,284 | ) | 43,015 | (5,977 | ) | |||||
Non-credit portion of other-than-temporary impairments recognized in other comprehensive income | — | 23 | (6 | ) | ||||||
Amounts reclassified into net income: | ||||||||||
Held-to-maturity securities | 87 | (116 | ) | (92 | ) | |||||
Non-credit other-than-temporary impairments | — | 68 | 138 | |||||||
Realized losses (gains) on available for sale securities | 31,316 | (4,537 | ) | 3,064 | ||||||
Total unrealized (losses) gains on investment securities | (65,881 | ) | 38,453 | (2,873 | ) | |||||
Defined benefit pension and post-retirement plans: | ||||||||||
Net actuarial loss | (8,906 | ) | (3,700 | ) | (7,852 | ) | ||||
Amounts reclassified into net income: | ||||||||||
Net actuarial loss | 1,680 | 1,367 | 4,200 | |||||||
Total defined benefit pension and post-retirement plans | (7,226 | ) | (2,333 | ) | (3,652 | ) | ||||
Other comprehensive (loss) income | (73,107 | ) | 36,120 | (6,525 | ) | |||||
Comprehensive income | $ | 105,832 | 204,946 | 151,970 |
Consolidated Statements of Stockholders’ Equity | ||||||||||
December 31, | ||||||||||
($ in thousands, except share amounts) | 2018 | 2017 | 2016 | |||||||
Common stock: | ||||||||||
Beginning of year | $ | 204,569 | 203,241 | 201,723 | ||||||
Dividend reinvestment plan (shares: 23,493 – 2018; 28,607 – 2017; 38,741 – 2016) | 47 | 57 | 77 | |||||||
Stock purchase and compensation plans (shares: 540,337 – 2018; 635,521 – 2017; 720,323 – 2016) | 1,081 | 1,271 | 1,441 | |||||||
End of year | 205,697 | 204,569 | 203,241 | |||||||
Additional paid-in capital: | ||||||||||
Beginning of year | 367,717 | 347,295 | 326,656 | |||||||
Dividend reinvestment plan | 1,379 | 1,395 | 1,389 | |||||||
Stock purchase and compensation plans | 21,219 | 19,027 | 19,250 | |||||||
End of year | 390,315 | 367,717 | 347,295 | |||||||
Retained earnings: | ||||||||||
Beginning of year, as previously reported | 1,698,613 | 1,568,881 | 1,446,192 | |||||||
Cumulative effect adjustment due to adoption of equity security guidance, net of tax | 30,726 | — | — | |||||||
Cumulative effect adjustment due to adoption of stranded deferred tax guidance | (5,707 | ) | — | — | ||||||
Balance at beginning of year, as adjusted | 1,723,632 | 1,568,881 | 1,446,192 | |||||||
Net income | 178,939 | 168,826 | 158,495 | |||||||
Dividends to stockholders ($0.74 per share – 2018; $0.66 per share – 2017; $0.61 per share – 2016) | (44,157 | ) | (39,094 | ) | (35,806 | ) | ||||
End of year | 1,858,414 | 1,698,613 | 1,568,881 | |||||||
Accumulated other comprehensive (loss) income: | ||||||||||
Beginning of year, as previously reported | 20,170 | (15,950 | ) | (9,425 | ) | |||||
Cumulative effect adjustment due to adoption of equity security guidance, net of tax | (30,726 | ) | — | — | ||||||
Cumulative effect adjustment due to adoption of stranded deferred tax guidance | 5,707 | — | — | |||||||
Balance at beginning of year, as adjusted | (4,849 | ) | (15,950 | ) | (9,425 | ) | ||||
Other comprehensive (loss) income | (73,107 | ) | 36,120 | (6,525 | ) | |||||
End of year | (77,956 | ) | 20,170 | (15,950 | ) | |||||
Treasury stock: | ||||||||||
Beginning of year | (578,112 | ) | (572,097 | ) | (567,105 | ) | ||||
Acquisition of treasury stock (shares: 110,398 – 2018; 136,205 – 2017; 152,595 – 2016) | (6,556 | ) | (6,015 | ) | (4,992 | ) | ||||
End of year | (584,668 | ) | (578,112 | ) | (572,097 | ) | ||||
Total stockholders’ equity | $ | 1,791,802 | 1,712,957 | 1,531,370 |
Consolidated Statements of Cash Flows | ||||||||||
December 31, | ||||||||||
($ in thousands) | 2018 | 2017 | 2016 | |||||||
Operating Activities | ||||||||||
Net income | $ | 178,939 | 168,826 | 158,495 | ||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||
Depreciation and amortization | 44,874 | 52,100 | 61,671 | |||||||
Stock-based compensation expense | 14,507 | 12,089 | 10,449 | |||||||
Undistributed (gains) losses of equity method investments | (8,341 | ) | (5,362 | ) | 318 | |||||
Distributions in excess of current year income of equity method investments | 2,924 | 552 | — | |||||||
Net realized and unrealized losses (gains) | 54,923 | (6,359 | ) | 4,937 | ||||||
Loss on disposal of fixed assets | 63 | 998 | — | |||||||
Changes in assets and liabilities: | ||||||||||
Increase in reserves for loss and loss expense, net of reinsurance recoverables | 168,288 | 106,226 | 114,422 | |||||||
Increase in unearned premiums, net of prepaid reinsurance | 78,058 | 79,614 | 87,716 | |||||||
Decrease in net federal income taxes | 2,428 | 30,918 | 11,150 | |||||||
Increase in premiums receivable | (23,489 | ) | (65,418 | ) | (66,447 | ) | ||||
Increase in deferred policy acquisition costs | (17,557 | ) | (12,491 | ) | (9,405 | ) | ||||
Increase in interest and dividends due or accrued | (540 | ) | (1,088 | ) | (1,473 | ) | ||||
Decrease in accrued salaries and benefits | (26,418 | ) | (5,714 | ) | (46,536 | ) | ||||
Increase in other assets | (372 | ) | (2,643 | ) | (4,979 | ) | ||||
(Decrease) increase in other liabilities | (13,343 | ) | 27,297 | 9,191 | ||||||
Net cash provided by operating activities | 454,944 | 379,545 | 329,509 | |||||||
Investing Activities | ||||||||||
Purchase of fixed income securities, held-to-maturity | (7,150 | ) | — | (4,235 | ) | |||||
Purchase of fixed income securities, available-for-sale | (2,918,203 | ) | (2,130,362 | ) | (1,982,023 | ) | ||||
Purchase of equity securities | (94,344 | ) | (61,931 | ) | (35,490 | ) | ||||
Purchase of other investments | (68,578 | ) | (55,830 | ) | (66,164 | ) | ||||
Purchase of short-term investments | (4,259,734 | ) | (4,280,553 | ) | (3,499,380 | ) | ||||
Sale of fixed income securities, available-for-sale | 2,030,664 | 1,197,920 | 926,470 | |||||||
Sale of short-term investments | 4,101,530 | 4,338,318 | 3,470,022 | |||||||
Redemption and maturities of fixed income securities, held-to-maturity | 12,106 | 58,832 | 102,868 | |||||||
Redemption and maturities of fixed income securities, available-for-sale | 638,916 | 555,216 | 641,524 | |||||||
Sale of equity securities | 113,339 | 37,960 | 119,617 | |||||||
Sale of other investments | 3,497 | — | — | |||||||
Distributions from other investments | 28,379 | 21,843 | 24,202 | |||||||
Purchase of property and equipment | (16,110 | ) | (14,071 | ) | (18,147 | ) | ||||
Net cash used in investing activities | (435,688 | ) | (332,658 | ) | (320,736 | ) | ||||
Financing Activities | ||||||||||
Dividends to stockholders | (42,097 | ) | (37,045 | ) | (33,758 | ) | ||||
Acquisition of treasury stock | (6,556 | ) | (6,015 | ) | (4,992 | ) | ||||
Net proceeds from stock purchase and compensation plans | 7,252 | 7,599 | 7,811 | |||||||
Proceeds from borrowings | 130,000 | 84,000 | 165,000 | |||||||
Repayment of borrowings | (130,000 | ) | (84,000 | ) | (115,000 | ) | ||||
Excess tax benefits from share-based payment arrangements | — | — | 1,819 | |||||||
Repayment of capital lease obligations | (5,646 | ) | (4,121 | ) | (5,002 | ) | ||||
Net cash (used in) provided by financing activities | (47,047 | ) | (39,582 | ) | 15,878 | |||||
Net (decrease) increase in cash and restricted cash | (27,791 | ) | 7,305 | 24,651 | ||||||
Cash and restricted cash, beginning of year | 44,710 | 37,405 | 12,754 | |||||||
Cash and restricted cash, end of year | $ | 16,919 | 44,710 | 37,405 |
• | Standard Commercial Lines - comprised of insurance products and services provided in the standard marketplace to commercial enterprises, which are typically businesses, non-profit organizations, and local government agencies. |
• | Standard Personal Lines - comprised of insurance products and services, including flood insurance coverage, provided primarily to individuals acquiring coverage in the standard marketplace. |
• | E&S Lines - comprised of insurance products and services provided to customers who have not obtained coverage in the standard marketplace. |
• | Investments - invests the premiums collected by our insurance operations, as well as amounts generated through our capital management strategies, which may include the issuance of debt and equity securities. |
• | U.S. government and government agencies; |
• | Foreign government obligations; |
• | State and municipal obligations, including special revenue and general obligation bonds; |
• | Corporate securities, which may include investment grade and below investment grade bonds, bank loan investments, redeemable preferred stock, and non-redeemable preferred stock with certain debt-like characteristics; |
• | Collateralized loan obligations ("CLOs") and other asset-backed securities ("ABS"); |
• | Residential mortgage-backed securities ("RMBS"); and |
• | Commercial mortgage-backed securities ("CMBS"). |
• | Federal low income housing tax credits are accounted for under the proportional amortization method; and |
• | All other tax credits in our investment portfolio are accounted for using the equity method. |
• | Interest income, as well as amortization and accretion, on fixed income securities; |
• | Dividend income on equity securities; |
• | Interest income on our short-term investments; and |
• | Income recognized on our alternative and other investments accounted for under the equity method of accounting, except for federal tax credits, as discussed below. |
• | Realized gain and losses on the disposal of investment securities, which are determined on the basis of the cost of the specific investments sold; |
• | Other-than-temporary impairment ("OTTI") charges that are credit related or related to our intent to sell; and |
• | Changes in unrealized gains or losses on our equity securities that are carried at fair value. |
• | Whether the decline appears to be issuer or industry specific; |
• | The degree to which the issuer is current or in arrears in making principal and interest payments on the fixed income security; |
• | The issuer’s current financial condition and ability to make future scheduled principal and interest payments on a timely basis; |
• | Evaluation of projected cash flows; |
• | Buy/hold/sell recommendations published by outside investment advisors and analysts; and |
• | Relevant rating history, analysis, and guidance provided by rating agencies and analysts. |
• | The current investment strategy; |
• | Changes made or future changes to be made to the investment strategy; |
• | Emerging issues that may affect the success of the strategy; and |
• | The appropriateness of the valuation methodology used regarding the underlying investments. |
• | A significant deterioration in the earnings performance, credit ratings, asset quality, or business prospects of the investee; |
• | A significant adverse change in the regulatory, economic, or technological environment of the investee; |
• | A significant adverse change in the general market condition of either the geographical area or the industry in which the investee operates; |
• | A bona fide offer to purchase, or an offer by the investee to sell, or a completed auction process for the same or similar investment for an amount less than the carrying amount of that investment; and |
• | Factors that raise significant concerns about the investee's ability to continue as a going concern, such as negative cash flows from operations, working capital deficiencies, or noncompliance with statutory capital requirements or debt covenants. |
Security Type | Methodology |
Equity Securities; U.S. Treasury Notes | Equity and U.S. Treasury Note prices are received from an independent pricing service that are based on observable market transactions. We validate these prices against a second external pricing service, and if established market value comparison thresholds are breached, further analysis is performed to determine the price to be used. |
Short-Term Investments | Short-term investments are carried at cost, which approximates fair value. Given the liquid nature of our short-term investments, we generally validate their fair value by way of active trades within approximately one week of the financial statement close. |
Security Type | Methodology |
Corporate Securities including preferred stocks classified as Fixed Income Securities, and U.S. Government and Government Agencies | Evaluations include obtaining relevant trade data, benchmark quotes and spreads, and incorporating this information into either spread-based or price-based evaluations as determined by the observed market data. Spread-based evaluations include: (i) creating a range of spreads for relevant maturities of each issuer based on the new issue market, secondary trading, and dealer quotes; and (ii) incorporating option adjusted spreads for issues that have early redemption features. Based on the findings in (i) and (ii) above, final spreads are derived and added to benchmark curves. Price-based evaluations include matching each issue to its best-known market maker and contacting firms that transact in these securities. |
Obligations of States and Political Subdivisions | Evaluations are based on yield curves that are developed based on factors such as: (i) benchmarks to issues with interest rates near prevailing market rates; (ii) established trading spreads over widely-accepted market benchmarks; (iii) yields on new issues; and (iv) market information from third-party sources such as reportable trades, broker-dealers, or issuers. |
RMBS, CMBS, CLOs and other ABS | Evaluations are based on a DCF, including: (i) generating cash flows for each tranche considering tranche-specific data, market data, and other pertinent information, such as historical performance of the underlying collateral, including net operating income generated by the underlying properties, conditional default rate assumptions, loan loss severity assumptions, consensus projections, prepayment projections, and actual pool and loan level collateral information; (ii) identifying applicable benchmark yields; and (iii) applying market-based tranche-specific spreads to determine an appropriate yield by incorporating collateral performance, tranche-level attributes, trades, bids, and offers. |
Foreign Government | Evaluations are performed using a DCF model and by incorporating observed market yields of benchmarks as inputs, adjusting for varied maturities. |
Security Type | Methodology |
5.875% Senior Notes | Based on the quoted market prices. |
Security Type | Methodology |
7.25% Senior Notes; 6.70% Senior Notes | Based on matrix pricing models prepared by external pricing services. |
Borrowings from Federal Home Loan Banks | Evaluations are performed using a DCF model based on current borrowing rates provided by the Federal Home Loan Banks that are consistent with the remaining term of the borrowing. |
Asset Category | Years | |
Computer hardware | 3 | |
Computer software | 3 to 5 | |
Internally developed software | 5 to 10 | |
Software licenses | 3 to 5 | |
Furniture and fixtures | 10 | |
Buildings and improvements | 5 to 40 |
• | Certain property catastrophe events may be low in frequency and high in severity. These events may affect many insureds simultaneously. Due to the unique nature of these events, ultimate liabilities are estimated for each event, based on surveys of our portfolio of exposures, in conjunction with individual claims estimates. While generally short-tailed, the liabilities associated with these events are subject to a higher degree of uncertainty. We maintain significant reinsurance protection that greatly limits the impact that these extreme events have on net loss and loss expenses. |
• | Some insured events may span multiple years and trigger multiple policies, as in the case of asbestos and environmental claims, where the injury is deemed to occur over an extended period of time. These types of losses often do not lend themselves to traditional actuarial methods. Where we deem appropriate, our experience may be analyzed without differentiating by accident year, using alternative methods and metrics. In these cases, the associated selected ultimate loss and loss expenses are then allocated to the applicable accident years for reporting. |
• | Another example of non-standard methods relate to loss expenses that cannot be attributed to a specific claim (referred to as “unallocated loss expenses”). These expenses are first allocated to line of business, and alternative projection methods are then applied to estimate expenses by calendar year, which are then allocated back to the applicable accident years for reporting. |
December 31, 2017 | December 31, 2016 | ||||||||||||
($ in thousands) | Prior to Adoption | After Adoption | Prior to Adoption | After Adoption | |||||||||
Undistributed (gains) losses of equity method investments | $ | (6,393 | ) | (5,362 | ) | $ | (2,316 | ) | 318 | ||||
Distributions in excess of current year income of equity method investments | — | 552 | — | — | |||||||||
(Increase) decrease in other assets | (9,872 | ) | (2,643 | ) | (30,071 | ) | (4,979 | ) | |||||
Net cash provided by operating activities | 370,733 | 379,545 | 301,783 | 329,509 | |||||||||
Distributions from other investments | 23,426 | 21,843 | 26,837 | 24,202 | |||||||||
Net cash used in investing activities | (331,075 | ) | (332,658 | ) | (318,101 | ) | (320,736 | ) |
($ in thousands) | 2018 | 2017 | 2016 | |||||||
Cash paid during the period for: | ||||||||||
Interest | $ | 23,992 | 23,905 | 22,098 | ||||||
Federal income tax | 29,193 | 62,000 | 46,405 | |||||||
Non-cash items: | ||||||||||
Corporate actions related to fixed income securities, AFS1 | 52,277 | 22,511 | 23,579 | |||||||
Corporate actions related to equity securities1 | 944 | 4,725 | 3,263 | |||||||
Assets acquired under capital lease arrangements | 4,119 | 278 | 3,151 | |||||||
Non-cash purchase of property and equipment | 291 | — | 78 |
($ in thousands) | December 31, 2018 | December 31, 2017 | |||||
Cash | $ | 505 | 534 | ||||
Restricted cash | 16,414 | 44,176 | |||||
Total cash and restricted cash shown in the Statements of Cash Flows | $ | 16,919 | 44,710 |
($ in thousands) | 2018 | 2017 | 2016 | |||||||
AFS securities: | ||||||||||
Fixed income securities | $ | 2,302 | 85,806 | 38,781 | ||||||
Equity securities | — | 38,894 | 25,864 | |||||||
Total AFS securities | 2,302 | 124,700 | 64,645 | |||||||
HTM securities: | ||||||||||
Fixed income securities | 89 | (21 | ) | 159 | ||||||
Total HTM securities | 89 | (21 | ) | 159 | ||||||
Total net unrealized gains | 2,391 | 124,679 | 64,804 | |||||||
Deferred income tax | (502 | ) | (44,103 | ) | (22,681 | ) | ||||
Net unrealized gains, net of deferred income tax | 1,889 | 80,576 | 42,123 | |||||||
Cumulative effect adjustment due to accounting change for equity unrealized1 | 30,726 | — | — | |||||||
Cumulative effect adjustment due to accounting changes due to accounting change for stranded tax assets1 | (17,920 | ) | — | — | ||||||
Increase (decrease) in net unrealized gains in OCI, net of deferred income tax | $ | (65,881 | ) | 38,453 | (2,873 | ) |
December 31, 2018 | Net | ||||||||||||||||||
Unrealized | Unrecognized | Unrecognized | |||||||||||||||||
Amortized | Gains | Carrying | Holding | Holding | Fair | ||||||||||||||
($ in thousands) | Cost | (Losses) | Value | Gains | Losses | Value | |||||||||||||
Obligations of state and political subdivisions | $ | 17,431 | 39 | 17,470 | 504 | (5 | ) | 17,969 | |||||||||||
Corporate securities | 19,590 | 50 | 19,640 | 855 | (147 | ) | 20,348 | ||||||||||||
Total HTM fixed income securities | $ | 37,021 | 89 | 37,110 | 1,359 | (152 | ) | 38,317 |
December 31, 2017 | Net | ||||||||||||||||||
Unrealized | Unrecognized | Unrecognized | |||||||||||||||||
Amortized | Gains | Carrying | Holding | Holding | Fair | ||||||||||||||
($ in thousands) | Cost | (Losses) | Value | Gains | Losses | Value | |||||||||||||
Obligations of state and political subdivisions | 25,154 | 84 | 25,238 | 1,023 | — | 26,261 | |||||||||||||
Corporate securities | 16,996 | (105 | ) | 16,891 | 1,003 | (55 | ) | 17,839 | |||||||||||
Total HTM fixed income securities | $ | 42,150 | (21 | ) | 42,129 | 2,026 | (55 | ) | 44,100 |
December 31, 2018 | |||||||||||||
Cost/ | |||||||||||||
Amortized | Unrealized | Unrealized | Fair | ||||||||||
($ in thousands) | Cost | Gains | Losses | Value | |||||||||
AFS fixed income securities: | |||||||||||||
U.S. government and government agencies | $ | 120,092 | 1,810 | (592 | ) | 121,310 | |||||||
Foreign government | 23,202 | 36 | (107 | ) | 23,131 | ||||||||
Obligations of states and political subdivisions | 1,121,615 | 19,485 | (2,631 | ) | 1,138,469 | ||||||||
Corporate securities | 1,639,852 | 5,521 | (27,965 | ) | 1,617,408 | ||||||||
CLO and other ABS | 720,193 | 4,112 | (6,943 | ) | 717,362 | ||||||||
CMBS | 527,409 | 3,417 | (3,748 | ) | 527,078 | ||||||||
RMBS | 1,118,435 | 12,988 | (3,081 | ) | 1,128,342 | ||||||||
Total AFS fixed income securities | $ | 5,270,798 | 47,369 | (45,067 | ) | 5,273,100 |
December 31, 2017 | |||||||||||||
Cost/ | |||||||||||||
Amortized | Unrealized | Unrealized | Fair | ||||||||||
($ in thousands) | Cost | Gains | Losses | Value | |||||||||
AFS fixed income securities: | |||||||||||||
U.S. government and government agencies | $ | 49,326 | 647 | (233 | ) | 49,740 | |||||||
Foreign government | 18,040 | 526 | (11 | ) | 18,555 | ||||||||
Obligations of states and political subdivisions | 1,539,307 | 44,245 | (582 | ) | 1,582,970 | ||||||||
Corporate securities | 1,588,339 | 30,891 | (1,762 | ) | 1,617,468 | ||||||||
CLO and other ABS | 789,152 | 6,508 | (202 | ) | 795,458 | ||||||||
CMBS | 382,727 | 1,563 | (841 | ) | 383,449 | ||||||||
RMBS | 709,825 | 6,487 | (1,430 | ) | 714,882 | ||||||||
Total AFS fixed income securities | 5,076,716 | 90,867 | (5,061 | ) | 5,162,522 | ||||||||
AFS equity securities: | |||||||||||||
Common stock | 129,696 | 38,287 | (226 | ) | 167,757 | ||||||||
Preferred stock | 14,115 | 904 | (71 | ) | 14,948 | ||||||||
Total AFS equity securities | 143,811 | 39,191 | (297 | ) | 182,705 | ||||||||
Total AFS securities | $ | 5,220,527 | 130,058 | (5,358 | ) | 5,345,227 |
December 31, 2018 | Less than 12 months | 12 months or longer | Total | ||||||||||||||||
($ in thousands) | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | |||||||||||||
AFS fixed income securities: | |||||||||||||||||||
U.S. government and government agencies | $ | 6,693 | (174 | ) | 23,163 | (418 | ) | 29,856 | (592 | ) | |||||||||
Foreign government | 12,208 | (93 | ) | 1,482 | (14 | ) | 13,690 | (107 | ) | ||||||||||
Obligations of states and political subdivisions | 196,798 | (2,074 | ) | 42,821 | (557 | ) | 239,619 | (2,631 | ) | ||||||||||
Corporate securities | 1,041,952 | (23,649 | ) | 78,953 | (4,316 | ) | 1,120,905 | (27,965 | ) | ||||||||||
CLO and other ABS | 516,106 | (6,750 | ) | 16,800 | (193 | ) | 532,906 | (6,943 | ) | ||||||||||
CMBS | 229,338 | (2,548 | ) | 66,294 | (1,200 | ) | 295,632 | (3,748 | ) | ||||||||||
RMBS | 139,338 | (1,660 | ) | 45,661 | (1,421 | ) | 184,999 | (3,081 | ) | ||||||||||
Total AFS fixed income securities | $ | 2,142,433 | (36,948 | ) | 275,174 | (8,119 | ) | 2,417,607 | (45,067 | ) |
December 31, 2017 | Less than 12 months | 12 months or longer | Total | ||||||||||||||||
($ in thousands) | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | |||||||||||||
AFS fixed income securities: | |||||||||||||||||||
U.S. government and government agencies | $ | 23,516 | (233 | ) | 250 | — | 23,766 | (233 | ) | ||||||||||
Foreign government | 1,481 | (11 | ) | — | — | 1,481 | (11 | ) | |||||||||||
Obligations of states and political subdivisions | 107,514 | (422 | ) | 14,139 | (160 | ) | 121,653 | (582 | ) | ||||||||||
Corporate securities | 238,326 | (1,744 | ) | 3,228 | (18 | ) | 241,554 | (1,762 | ) | ||||||||||
CLO and other ABS | 74,977 | (196 | ) | 1,655 | (6 | ) | 76,632 | (202 | ) | ||||||||||
CMBS | 154,267 | (773 | ) | 5,214 | (68 | ) | 159,481 | (841 | ) | ||||||||||
RMBS | 269,485 | (1,285 | ) | 11,200 | (145 | ) | 280,685 | (1,430 | ) | ||||||||||
Total AFS fixed income securities | 869,566 | (4,664 | ) | 35,686 | (397 | ) | 905,252 | (5,061 | ) | ||||||||||
AFS equity securities: | |||||||||||||||||||
Common stock | 4,727 | (226 | ) | — | — | 4,727 | (226 | ) | |||||||||||
Preferred stock | 3,833 | (71 | ) | — | — | 3,833 | (71 | ) | |||||||||||
Total AFS equity securities | 8,560 | (297 | ) | — | — | 8,560 | (297 | ) | |||||||||||
Total AFS securities | $ | 878,126 | (4,961 | ) | 35,686 | (397 | ) | 913,812 | (5,358 | ) |
AFS | HTM | |||||||||
($ in thousands) | Fair Value | Carrying Value | Fair Value | |||||||
Due in one year or less | $ | 188,309 | 13,502 | 13,693 | ||||||
Due after one year through five years | 2,040,395 | 17,308 | 18,260 | |||||||
Due after five years through 10 years | 2,863,528 | 6,300 | 6,364 | |||||||
Due after 10 years | 180,868 | — | — | |||||||
Total fixed income securities | $ | 5,273,100 | 37,110 | 38,317 |
Other Investments | December 31, 2018 | December 31, 2017 | |||||||||||||||||
($ in thousands) | Carrying Value | Remaining Commitment | Maximum Exposure to Loss1 | Carrying Value | Remaining Commitment | Maximum Exposure to Loss1 | |||||||||||||
Alternative Investments | |||||||||||||||||||
Private equity | $ | 84,352 | 93,688 | 178,040 | 52,251 | 99,026 | 151,277 | ||||||||||||
Private credit | 41,682 | 81,453 | 123,135 | 37,743 | 94,959 | 132,702 | |||||||||||||
Real assets | 27,862 | 27,129 | 54,991 | 25,379 | 27,014 | 52,393 | |||||||||||||
Total alternative investments | 153,896 | 202,270 | 356,166 | 115,373 | 220,999 | 336,372 | |||||||||||||
Other securities2 | 25,042 | — | 25,042 | 16,895 | — | 16,895 | |||||||||||||
Total other investments | $ | 178,938 | 202,270 | 381,208 | 132,268 | 220,999 | 353,267 |
• | Primary Private Equity: This strategy makes private equity investments, primarily in established large and middle market companies across diverse industries globally. |
• | Secondary Private Equity: This strategy purchases seasoned private equity funds from investors desiring liquidity prior to normal fund termination. Investments are made across all sectors of the private equity market, including leveraged buyouts ("LBO"), venture capital, distressed securities, mezzanine financing, real estate, and infrastructure. |
• | Venture Capital: In general, these investments are made principally by investing in equity securities of privately-held corporations, for long-term capital appreciation. This strategy makes private equity investments in growth equity and buyout partnerships. |
• | Middle Market Lending: This strategy provides privately negotiated loans to U.S. middle market companies. Typically, these are floating rate, senior secured loans diversified across industries. Loans can be made to private equity sponsor-backed companies or non-sponsored companies to finance LBOs, recapitalizations, and acquisitions. |
• | Mezzanine Financing: This strategy provides privately negotiated fixed income securities, generally with an equity component, to LBO firms and private and publicly traded large, mid, and small-cap companies to finance LBOs, recapitalizations, and acquisitions. |
• | Distressed Debt: This strategy makes direct and indirect investments in debt and equity securities of companies that are experiencing financial and/or operational distress. Investments include buying indebtedness of bankrupt or financially troubled companies, small balance loan portfolios, special situations and capital structure arbitrage trades, commercial real estate mortgages, and similar non-U.S. securities and debt obligations. |
• | Energy & Power Generation: This strategy makes energy and power generation investments in cash flow generating infrastructure assets. Energy investments are made in a variety of industries including oil, natural gas, and coal. These investments are diversified across the energy supply chain and include assets in the exploration and production, pipeline, and refining sectors. Power generation includes investments in: (i) conventional power, such as natural gas and oil; (ii) renewable power, such as wind and solar; and (iii) electric transmission and distribution. |
• | Real Estate: This strategy invests in real estate in North America, Europe, and Asia via direct property ownership, joint ventures, mortgages, and investments in equity and debt instruments. |
Balance Sheet Information | |||||||
September 30, | |||||||
($ in millions) | 2018 | 2017 | |||||
Investments | $ | 28,292 | 21,046 | ||||
Total assets | 30,377 | 22,357 | |||||
Total liabilities | 4,532 | 4,767 | |||||
Total partners’ capital | 25,845 | 17,590 |
Income Statement Information | ||||||||||
12 months ended September 30, | ||||||||||
($ in millions) | 2018 | 2017 | 2016 | |||||||
Net investment income (loss) | $ | 134 | (143 | ) | (44 | ) | ||||
Realized gains | 1,981 | 325 | 1,374 | |||||||
Net change in unrealized appreciation (depreciation) | 1,303 | 2,894 | (719 | ) | ||||||
Net income | $ | 3,418 | 3,076 | 611 | ||||||
Insurance Subsidiaries' alternative investments income (loss) | 17.6 | 12.7 | 3.1 |
($ in millions) | FHLBI Collateral | FHLBNY Collateral | State and Regulatory Deposits | Total | |||||||||
U.S. government and government agencies | $ | — | — | 22.5 | 22.5 | ||||||||
Obligations of states and political subdivisions | — | — | 3.9 | 3.9 | |||||||||
Corporate securities | — | — | 0.3 | 0.3 | |||||||||
CMBS | 7.2 | 18.1 | — | 25.3 | |||||||||
RMBS | 58.0 | 45.5 | — | 103.5 | |||||||||
Total pledged as collateral | $ | 65.2 | 63.6 | 26.7 | 155.5 |
($ in thousands) | 2018 | 2017 | 2016 | |||||||
Fixed income securities | $ | 178,104 | 153,230 | 129,306 | ||||||
Equity securities | 7,764 | 6,442 | 7,368 | |||||||
Short-term investments | 3,472 | 1,526 | 686 | |||||||
Other investments | 17,799 | 12,871 | 2,940 | |||||||
Investment expenses | (11,803 | ) | (12,187 | ) | (9,546 | ) | ||||
Net investment income earned | $ | 195,336 | 161,882 | 130,754 |
2018 | Recognized in Earnings | |||||||||
($ in thousands) | Gross | Included in OCI | ||||||||
AFS fixed income securities: | ||||||||||
Corporate securities | $ | 1,783 | — | 1,783 | ||||||
RMBS | 2,903 | — | 2,903 | |||||||
Total AFS fixed income securities | 4,686 | — | 4,686 | |||||||
Other investments | 1,893 | — | 1,893 | |||||||
Total OTTI losses | $ | 6,579 | — | 6,579 |
2017 | Recognized in Earnings | |||||||||
($ in thousands) | Gross | Included in OCI | ||||||||
AFS fixed income securities: | ||||||||||
U.S. government and government agencies | $ | 36 | — | 36 | ||||||
Obligations of states and political subdivisons | 612 | — | 612 | |||||||
Corporate securities | 587 | — | 587 | |||||||
CLO and other ABS | 96 | — | 96 | |||||||
CMBS | 670 | — | 670 | |||||||
RMBS | 1,183 | (36 | ) | 1,219 | ||||||
Total AFS fixed income securities | 3,184 | (36 | ) | 3,220 | ||||||
AFS equity securities: | ||||||||||
Common stock | 1,435 | — | 1,435 | |||||||
Total AFS equity securities | 1,435 | — | 1,435 | |||||||
Other investments | 190 | — | 190 | |||||||
Total OTTI losses | $ | 4,809 | (36 | ) | 4,845 |
2016 | Recognized in Earnings | |||||||||
($ in thousands) | Gross | Included in OCI | ||||||||
AFS fixed income securities: | ||||||||||
Obligations of states and political subdivisons | $ | 2,797 | — | 2,797 | ||||||
CLO and other ABS | 19 | — | 19 | |||||||
Corporate securities | 1,880 | — | 1,880 | |||||||
CMBS | 220 | — | 220 | |||||||
RMBS | 275 | 10 | 265 | |||||||
Total AFS fixed income securities | 5,191 | 10 | 5,181 | |||||||
AFS equity securities: | ||||||||||
Common stock | 3,316 | — | 3,316 | |||||||
Preferred stock | 2 | — | 2 | |||||||
Total AFS equity securities | 3,318 | — | 3,318 | |||||||
Total OTTI losses | $ | 8,509 | 10 | 8,499 |
($ in thousands) | 2018 | 2017 | 2016 | |||||||
Net realized (losses) gains on the disposals of securities: | ||||||||||
Fixed income securities | $ | (34,953 | ) | 6,944 | (3,668 | ) | ||||
Equity securities | 18,695 | 4,629 | 7,244 | |||||||
Short-term investments | (3 | ) | (4 | ) | (13 | ) | ||||
Other investments | (2,714 | ) | (365 | ) | (1 | ) | ||||
Net realized (losses) gains on the disposal of securities | (18,975 | ) | 11,204 | 3,562 | ||||||
OTTI charges | (6,579 | ) | (4,845 | ) | (8,499 | ) | ||||
Net realized (losses) gains | (25,554 | ) | 6,359 | (4,937 | ) | |||||
Unrealized (losses) recognized in income on equity securities1 | (29,369 | ) | — | — | ||||||
Total net realized and unrealized investment (losses) gains | $ | (54,923 | ) | 6,359 | (4,937 | ) |
($ in thousands) | 2018 | 2017 | 2016 | |||||||
HTM fixed income securities | ||||||||||
Gains | $ | 2 | 44 | 3 | ||||||
Losses | — | (1 | ) | (1 | ) | |||||
AFS fixed income securities | ||||||||||
Gains | 5,460 | 10,193 | 7,741 | |||||||
Losses | (40,415 | ) | (3,292 | ) | (11,411 | ) | ||||
Equity securities | ||||||||||
Gains | 23,203 | 5,829 | 8,108 | |||||||
Losses | (4,508 | ) | (1,200 | ) | (864 | ) | ||||
Short-term investments | ||||||||||
Gains | 7 | 2 | — | |||||||
Losses | (10 | ) | (6 | ) | (13 | ) | ||||
Other investments | ||||||||||
Gains | — | 494 | 3 | |||||||
Losses | (2,714 | ) | (859 | ) | (4 | ) | ||||
Total net realized investment (losses) gains | $ | (18,975 | ) | 11,204 | 3,562 |
• | 2018: Higher trading volume driven by opportunistic sales in both our fixed income securities and equity portfolios. |
• | 2017: Higher trading volume in our fixed income securities portfolio related to a more active external investment management approach and opportunistic sales in our equity portfolio. |
2018 | ||||||||||
($ in thousands) | Gross | Tax | Net | |||||||
Net income | $ | 211,721 | 32,782 | 178,939 | ||||||
Components of OCI: | ||||||||||
Unrealized (losses) gains on investment securities: | ||||||||||
Unrealized holding losses during the year | (123,145 | ) | (25,861 | ) | (97,284 | ) | ||||
Amounts reclassified into net income: | ||||||||||
HTM securities | 110 | 23 | 87 | |||||||
Realized losses on AFS securities | 39,641 | 8,325 | 31,316 | |||||||
Net unrealized losses | (83,394 | ) | (17,513 | ) | (65,881 | ) | ||||
Defined benefit pension and post-retirement plans: | ||||||||||
Net actuarial loss | (11,273 | ) | (2,367 | ) | (8,906 | ) | ||||
Amounts reclassified into net income: | ||||||||||
Net actuarial loss | 2,127 | 447 | 1,680 | |||||||
Defined benefit pension and post-retirement plans | (9,146 | ) | (1,920 | ) | (7,226 | ) | ||||
Other comprehensive loss | (92,540 | ) | (19,433 | ) | (73,107 | ) | ||||
Comprehensive income | $ | 119,181 | 13,349 | 105,832 |
2017 | ||||||||||
($ in thousands) | Gross | Tax | Net | |||||||
Net income | $ | 261,968 | 93,142 | 168,826 | ||||||
Components of OCI: | ||||||||||
Unrealized gains (losses) on investment securities: | ||||||||||
Unrealized holding gains during the year | 66,894 | 23,879 | 43,015 | |||||||
Non-credit portion of OTTI recognized in OCI | 36 | 13 | 23 | |||||||
Amounts reclassified into net income: | ||||||||||
HTM securities | (179 | ) | (63 | ) | (116 | ) | ||||
Non-credit OTTI | 104 | 36 | 68 | |||||||
Realized gains on AFS securities | (6,979 | ) | (2,442 | ) | (4,537 | ) | ||||
Net unrealized gains | 59,876 | 21,423 | 38,453 | |||||||
Defined benefit pension and post-retirement plans: | ||||||||||
Net actuarial loss | (4,684 | ) | (984 | ) | (3,700 | ) | ||||
Amounts reclassified into net income: | ||||||||||
Net actuarial loss | 2,102 | 735 | 1,367 | |||||||
Defined benefit pension and post-retirement plans | (2,582 | ) | (249 | ) | (2,333 | ) | ||||
Other comprehensive income | 57,294 | 21,174 | 36,120 | |||||||
Comprehensive income | $ | 319,262 | 114,316 | 204,946 |
2016 | ||||||||||
($ in thousands) | Gross | Tax | Net | |||||||
Net income | $ | 219,955 | 61,460 | 158,495 | ||||||
Components of OCI: | ||||||||||
Unrealized (losses) gains on investment securities: | ||||||||||
Unrealized holding losses during the year | (9,195 | ) | (3,218 | ) | (5,977 | ) | ||||
Non-credit portion of OTTI recognized in OCI | (10 | ) | (4 | ) | (6 | ) | ||||
Amounts reclassified into net income: | ||||||||||
HTM securities | (141 | ) | (49 | ) | (92 | ) | ||||
Non-credit OTTI | 213 | 75 | 138 | |||||||
Realized losses on AFS securities | 4,713 | 1,649 | 3,064 | |||||||
Net unrealized losses | (4,420 | ) | (1,547 | ) | (2,873 | ) | ||||
Defined benefit pension and post-retirement plans: | ||||||||||
Net actuarial loss | (12,079 | ) | (4,227 | ) | (7,852 | ) | ||||
Amounts reclassified into net income: | ||||||||||
Net actuarial loss | 6,462 | 2,262 | 4,200 | |||||||
Defined benefit pension and post-retirement plans | (5,617 | ) | (1,965 | ) | (3,652 | ) | ||||
Other comprehensive loss | (10,037 | ) | (3,512 | ) | (6,525 | ) | ||||
Comprehensive income | $ | 209,918 | 57,948 | 151,970 |
Net Unrealized (Loss) Gain on Investment Securities | Defined Benefit Pension and Post-retirement Plans | ||||||||||||||||||
($ in thousands) | OTTI Related | HTM Related | All Other | Investments Subtotal | Total AOCI | ||||||||||||||
Balance, December 31, 2016 | $ | (150 | ) | 102 | 42,170 | 42,122 | (58,072 | ) | (15,950 | ) | |||||||||
OCI before reclassifications | 23 | — | 43,015 | 43,038 | (3,700 | ) | 39,338 | ||||||||||||
Amounts reclassified from AOCI | 68 | (116 | ) | (4,537 | ) | (4,585 | ) | 1,367 | (3,218 | ) | |||||||||
Net current period OCI | 91 | (116 | ) | 38,478 | 38,453 | (2,333 | ) | 36,120 | |||||||||||
Balance, December 31, 2017 | (59 | ) | (14 | ) | 80,648 | 80,575 | (60,405 | ) | 20,170 | ||||||||||
Cumulative effect adjustments1 | (12 | ) | (2 | ) | (12,792 | ) | (12,806 | ) | (12,213 | ) | (25,019 | ) | |||||||
Balance: December 31, 2017 as adjusted | $ | (71 | ) | (16 | ) | 67,856 | 67,769 | (72,618 | ) | (4,849 | ) | ||||||||
OCI before reclassifications | — | — | (97,284 | ) | (97,284 | ) | (8,906 | ) | (106,190 | ) | |||||||||
Amounts reclassified from AOCI | — | 87 | 31,316 | 31,403 | 1,680 | 33,083 | |||||||||||||
Net current period OCI | — | 87 | (65,968 | ) | (65,881 | ) | (7,226 | ) | (73,107 | ) | |||||||||
Balance, December 31, 2018 | $ | (71 | ) | 71 | 1,888 | 1,888 | (79,844 | ) | (77,956 | ) |
($ in thousands) | Year ended December 31, 2018 | Year ended December 31, 2017 | Affected Line Item in the Consolidated Statements of Income | ||||||
OTTI related | |||||||||
Non-credit OTTI on disposed securities | $ | — | 104 | Net realized and unrealized (losses) gains | |||||
— | 104 | Income before federal income tax | |||||||
— | (36 | ) | Total federal income tax expense | ||||||
— | 68 | Net income | |||||||
HTM related | |||||||||
Unrealized losses on HTM disposals | 137 | 32 | Net realized and unrealized (losses) gains | ||||||
Amortization of net unrealized gains on HTM securities | (27 | ) | (211 | ) | Net investment income earned | ||||
110 | (179 | ) | Income before federal income tax | ||||||
(23 | ) | 63 | Total federal income tax expense | ||||||
87 | (116 | ) | Net income | ||||||
Realized losses (gains) on AFS | |||||||||
Realized losses (gains) on AFS disposals | 39,641 | (6,979 | ) | Net realized and unrealized (losses) gains | |||||
39,641 | (6,979 | ) | Income before federal income tax | ||||||
(8,325 | ) | 2,442 | Total federal income tax expense | ||||||
31,316 | (4,537 | ) | Net income | ||||||
Defined benefit pension and post-retirement life plans | |||||||||
Net actuarial loss | 450 | 450 | Loss and loss expense incurred | ||||||
1,677 | 1,652 | Other insurance expenses | |||||||
Total defined benefit pension and post-retirement life | 2,127 | 2,102 | Income before federal income tax | ||||||
(447 | ) | (735 | ) | Total federal income tax expense | |||||
1,680 | 1,367 | Net income | |||||||
Total reclassifications for the period | $ | 33,083 | (3,218 | ) | Net income |
December 31, 2018 | December 31, 2017 | ||||||||||||
($ in thousands) | Carrying Amount | Fair Value | Carrying Amount | Fair Value | |||||||||
Financial Assets | |||||||||||||
Fixed income securities: | |||||||||||||
HTM | $ | 37,110 | 38,317 | 42,129 | 44,100 | ||||||||
AFS | 5,273,100 | 5,273,100 | 5,162,522 | 5,162,522 | |||||||||
Equity securities | 147,639 | 147,639 | 182,705 | 182,705 | |||||||||
Short-term investments | 323,864 | 323,864 | 165,555 | 165,555 | |||||||||
Long-term debt: | |||||||||||||
7.25% Senior Notes | 49,907 | 57,032 | 49,904 | 61,391 | |||||||||
6.70% Senior Notes | 99,462 | 107,075 | 99,446 | 116,597 | |||||||||
5.875% Senior Notes | 185,000 | 177,230 | 185,000 | 186,332 | |||||||||
1.61% Borrowings from FHLBNY | 25,000 | 24,218 | 25,000 | 24,270 | |||||||||
1.56% Borrowings from FHLBNY | 25,000 | 24,162 | 25,000 | 24,210 | |||||||||
3.03% Borrowings from FHLBI | 60,000 | 58,905 | 60,000 | 60,334 | |||||||||
Subtotal long-term debt | 444,369 | 448,622 | 444,350 | 473,134 | |||||||||
Unamortized debt issuance costs | (4,829 | ) | (5,234 | ) | |||||||||
Total long-term debt | $ | 439,540 | 439,116 |
December 31, 2018 | Fair Value Measurements Using | ||||||||||||
($ in thousands) | Assets Measured at Fair Value | Quoted Prices in Active Markets for Identical Assets/ Liabilities (Level 1)1 | Significant Other Observable Inputs (Level 2)1 | Significant Unobservable Inputs (Level 3) | |||||||||
Description | |||||||||||||
Measured on a recurring basis: | |||||||||||||
AFS fixed income securities: | |||||||||||||
U.S. government and government agencies | $ | 121,310 | 78,381 | 42,929 | — | ||||||||
Foreign government | 23,131 | — | 23,131 | — | |||||||||
Obligations of states and political subdivisions | 1,138,469 | — | 1,138,469 | — | |||||||||
Corporate securities | 1,617,408 | — | 1,617,408 | — | |||||||||
CLO and other ABS | 717,362 | — | 709,953 | 7,409 | |||||||||
CMBS | 527,078 | — | 527,078 | — | |||||||||
RMBS | 1,128,342 | — | 1,128,342 | — | |||||||||
Total AFS fixed income securities | 5,273,100 | 78,381 | 5,187,310 | 7,409 | |||||||||
Equity securities: | |||||||||||||
Common stock2 | 144,727 | 107,397 | — | — | |||||||||
Preferred stock | 2,912 | 2,912 | — | — | |||||||||
Total equity securities | 147,639 | 110,309 | — | — | |||||||||
Short-term investments | 323,864 | 321,370 | 2,494 | — | |||||||||
Total assets measured at fair value | $ | 5,744,603 | 510,060 | 5,189,804 | 7,409 |
December 31, 2017 | Fair Value Measurements Using | ||||||||||||
($ in thousands) | Assets Measured at Fair Value | Quoted Prices in Active Markets for Identical Assets/ Liabilities (Level 1)1 | Significant Other Observable Inputs (Level 2)1 | Significant Unobservable Inputs (Level 3) | |||||||||
Description | |||||||||||||
Measured on a recurring basis: | |||||||||||||
AFS fixed income securities: | |||||||||||||
U.S. government and government agencies | $ | 49,740 | 24,652 | 25,088 | — | ||||||||
Foreign government | 18,555 | — | 18,555 | — | |||||||||
Obligations of states and political subdivisions | 1,582,970 | — | 1,582,970 | — | |||||||||
Corporate securities | 1,617,468 | — | 1,617,468 | — | |||||||||
CLO and other ABS | 795,458 | — | 795,458 | — | |||||||||
CMBS | 383,449 | — | 376,895 | 6,554 | |||||||||
RMBS | 714,882 | — | 714,882 | — | |||||||||
Total AFS fixed income securities | 5,162,522 | 24,652 | 5,131,316 | 6,554 | |||||||||
AFS equity securities: | |||||||||||||
Common stock | 167,757 | 138,640 | — | 5,398 | |||||||||
Preferred stock | 14,948 | 14,948 | — | — | |||||||||
Total AFS equity securities | 182,705 | 153,588 | — | 5,398 | |||||||||
Total AFS securities | 5,345,227 | 178,240 | 5,131,316 | 11,952 | |||||||||
Short-term investments | 165,555 | 165,555 | — | — | |||||||||
Total assets measured at fair value | $ | 5,510,782 | 343,795 | 5,131,316 | 11,952 |
2018 | |||||||||||||
($ in thousands) | CMBS | CLO and Other ABS | Common Stock | Total | |||||||||
Fair value, December 31, 2017 | $ | 6,554 | — | 5,398 | 11,952 | ||||||||
Total net (losses) gains for the period included in: | |||||||||||||
OCI | — | — | — | — | |||||||||
Net income | — | — | — | — | |||||||||
Purchases | — | 7,409 | — | 7,409 | |||||||||
Sales | — | — | — | — | |||||||||
Issuances | — | — | — | — | |||||||||
Settlements | — | — | — | — | |||||||||
Transfers into Level 3 | — | — | — | — | |||||||||
Transfers out of Level 3 | (6,554 | ) | — | (5,398 | ) | (11,952 | ) | ||||||
Fair value, December 31, 2018 | $ | — | 7,409 | — | 7,409 |
December 31, 2018 | Fair Value Measurements Using | ||||||||||||
($ in thousands) | Assets/Liabilities Disclosed at Fair Value | Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||
Financial Assets | |||||||||||||
HTM: | |||||||||||||
Obligations of states and political subdivisions | $ | 17,969 | — | 17,969 | — | ||||||||
Corporate securities | 20,348 | — | 20,348 | — | |||||||||
Total HTM fixed income securities | $ | 38,317 | — | 38,317 | — | ||||||||
Financial Liabilities | |||||||||||||
Long-term debt: | |||||||||||||
7.25% Senior Notes | $ | 57,032 | — | 57,032 | — | ||||||||
6.70% Senior Notes | 107,075 | — | 107,075 | — | |||||||||
5.875% Senior Notes | 177,230 | 177,230 | — | — | |||||||||
1.61% Borrowings from FHLBNY | 24,218 | — | 24,218 | — | |||||||||
1.56% Borrowings from FHLBNY | 24,162 | — | 24,162 | — | |||||||||
3.03% Borrowings from FHLBI | 58,905 | — | 58,905 | — | |||||||||
Total long-term debt | $ | 448,622 | 177,230 | 271,392 | — |
December 31, 2017 | Fair Value Measurements Using | ||||||||||||
($ in thousands) | Assets/Liabilities Disclosed at Fair Value | Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||
Financial Assets | |||||||||||||
HTM: | |||||||||||||
Obligations of states and political subdivisions | $ | 26,261 | — | 26,261 | — | ||||||||
Corporate securities | 17,839 | — | 12,306 | 5,533 | |||||||||
Total HTM fixed income securities | $ | 44,100 | — | 38,567 | 5,533 | ||||||||
Financial Liabilities | |||||||||||||
Long-term debt: | |||||||||||||
7.25% Senior Notes | $ | 61,391 | — | 61,391 | — | ||||||||
6.70% Senior Notes | 116,597 | — | 116,597 | — | |||||||||
5.875% Senior Notes | 186,332 | 186,332 | — | — | |||||||||
1.61% Borrowings from FHLBNY | 24,270 | — | 24,270 | — | |||||||||
1.56% Borrowings from FHLBNY | 24,210 | — | 24,210 | — | |||||||||
3.03% Borrowings from FHLBI | 60,334 | — | 60,334 | — | |||||||||
Total long-term debt | $ | 473,134 | 186,332 | 286,802 | — |
As of December 31, 2018 | As of December 31, 2017 | |||||||||||||
($ in thousands) | Reinsurance Balances | % of Reinsurance Balance | Reinsurance Balances | % of Reinsurance Balance | ||||||||||
Total reinsurance recoverables | $ | 549,172 | $ | 594,832 | ||||||||||
Total prepaid reinsurance premiums | 157,723 | 153,493 | ||||||||||||
Total reinsurance balance | 706,895 | 748,325 | ||||||||||||
Federal and state pools1: | ||||||||||||||
NFIP | 170,453 | 24 | % | 204,161 | 27 | % | ||||||||
New Jersey Unsatisfied Claim Judgment Fund | 55,167 | 7 | 62,947 | 9 | ||||||||||
Other | 3,602 | 1 | 3,634 | — | ||||||||||
Total federal and state pools | 229,222 | 32 | 270,742 | 36 | ||||||||||
Remaining reinsurance balance | $ | 477,673 | 68 | $ | 477,583 | 64 | ||||||||
Munich Re Group (A.M. Best rated "A+") | $ | 112,841 | 16 | $ | 117,460 | 16 | ||||||||
Hannover Ruckversicherungs AG (A.M. Best rated "A+") | 101,835 | 14 | 101,652 | 14 | ||||||||||
AXIS Reinsurance Company (A.M. Best rated "A+") | 69,102 | 10 | 62,396 | 8 | ||||||||||
Swiss Re Group (A.M. Best rated "A+") | 37,519 | 5 | 40,772 | 5 | ||||||||||
Transatlantic Reinsurance Company (A.M. Best rated “A+”) | 17,686 | 3 | 13,237 | 2 | ||||||||||
Endurance Specialty Ins. LTD. (A.M. Best rated “A+”) | 15,163 | 2 | 18,469 | 2 | ||||||||||
Partner Reinsurance Company of the U.S. (A.M. Best rated “A”) | 12,261 | 2 | 16,925 | 2 | ||||||||||
All other reinsurers | 111,266 | 16 | 106,672 | 15 | ||||||||||
Total reinsurers | 477,673 | 68 | % | 477,583 | 64 | % | ||||||||
Less: collateral2 | (112,201 | ) | (122,413 | ) | ||||||||||
Reinsurers, net of collateral | $ | 365,472 | $ | 355,170 |
($ in thousands) | 2018 | 2017 | 2016 | |||||||
Premiums written: | ||||||||||
Direct | $ | 2,890,633 | 2,733,459 | 2,577,259 | ||||||
Assumed | 26,250 | 26,685 | 28,779 | |||||||
Ceded | (402,597 | ) | (389,503 | ) | (368,750 | ) | ||||
Net | $ | 2,514,286 | 2,370,641 | 2,237,288 | ||||||
Premiums earned: | ||||||||||
Direct | $ | 2,808,764 | 2,647,488 | 2,484,715 | ||||||
Assumed | 25,831 | 25,831 | 28,214 | |||||||
Ceded | (398,366 | ) | (382,292 | ) | (363,357 | ) | ||||
Net | $ | 2,436,229 | 2,291,027 | 2,149,572 | ||||||
Loss and loss expense incurred: | ||||||||||
Direct | $ | 1,706,951 | 1,570,678 | 1,560,356 | ||||||
Assumed | 21,469 | 17,588 | 22,708 | |||||||
Ceded | (230,286 | ) | (243,192 | ) | (348,267 | ) | ||||
Net | $ | 1,498,134 | 1,345,074 | 1,234,797 |
Ceded to NFIP ($ in thousands) | 2018 | 2017 | 2016 | |||||||
Ceded premiums written | $ | (248,053 | ) | (241,345 | ) | (232,245 | ) | |||
Ceded premiums earned | (244,238 | ) | (235,088 | ) | (227,882 | ) | ||||
Ceded loss and loss expense incurred | (144,967 | ) | (160,922 | ) | (239,891 | ) |
($ in thousands) | 2018 | 2017 | 2016 | |||||||
Gross reserves for loss and loss expense, at beginning of year | $ | 3,771,240 | 3,691,719 | 3,517,728 | ||||||
Less: reinsurance recoverable on unpaid loss and loss expense, at beginning of year | 585,855 | 611,200 | 551,019 | |||||||
Net reserves for loss and loss expense, at beginning of year | 3,185,385 | 3,080,519 | 2,966,709 | |||||||
Incurred loss and loss expense for claims occurring in the: | ||||||||||
Current year | 1,527,997 | 1,384,266 | 1,300,565 | |||||||
Prior years | (29,863 | ) | (39,192 | ) | (65,768 | ) | ||||
Total incurred loss and loss expense | 1,498,134 | 1,345,074 | 1,234,797 | |||||||
Paid loss and loss expense for claims occurring in the: | ||||||||||
Current year | 573,718 | 497,486 | 450,811 | |||||||
Prior years | 753,321 | 742,722 | 670,176 | |||||||
Total paid loss and loss expense | 1,327,039 | 1,240,208 | 1,120,987 | |||||||
Net reserves for loss and loss expense, at end of year | 3,356,480 | 3,185,385 | 3,080,519 | |||||||
Add: Reinsurance recoverable on unpaid loss and loss expense, at end of year | 537,388 | 585,855 | 611,200 | |||||||
Gross reserves for loss and loss expense at end of year | $ | 3,893,868 | 3,771,240 | 3,691,719 |
(Favorable)/Unfavorable Prior Year Development | ||||||||||
($ in millions) | 2018 | 2017 | 2016 | |||||||
General Liability | $ | (9.5 | ) | (48.3 | ) | (45.0 | ) | |||
Commercial Automobile | 36.7 | 35.6 | 25.3 | |||||||
Workers Compensation | (83.0 | ) | (52.3 | ) | (56.0 | ) | ||||
Businessowners' Policies | (1.5 | ) | 1.9 | 1.8 | ||||||
Commercial Property | 7.5 | 8.7 | 0.3 | |||||||
Homeowners | 9.8 | 0.4 | 1.7 | |||||||
Personal Automobile | 3.0 | 6.7 | 1.0 | |||||||
E&S Casualty Lines | 12.0 | 10.0 | 6.0 | |||||||
E&S Property Lines | (4.8 | ) | 0.1 | 1.2 | ||||||
Other | (0.1 | ) | (2.0 | ) | (2.1 | ) | ||||
Total | $ | (29.9 | ) | (39.2 | ) | (65.8 | ) |
2018 | |||||||
($ in millions) | Gross | Net | |||||
Asbestos | $ | 7.3 | 6.1 | ||||
Landfill sites | 12.2 | 7.4 | |||||
Underground storage tanks | 10.5 | 9.3 | |||||
Total | $ | 30.0 | 22.8 |
2018 | 2017 | 2016 | |||||||||||||||||
($ in thousands) | Gross | Net | Gross | Net | Gross | Net | |||||||||||||
Asbestos | |||||||||||||||||||
Reserves for loss and loss expense at beginning of year | $ | 7,577 | 6,346 | 7,847 | 6,615 | 8,024 | 6,793 | ||||||||||||
Incurred loss and loss expense | — | — | — | — | 77 | 77 | |||||||||||||
Less: loss and loss expense paid | (249 | ) | (249 | ) | (270 | ) | (269 | ) | (254 | ) | (255 | ) | |||||||
Reserves for loss and loss expense at the end of year | $ | 7,328 | 6,097 | 7,577 | 6,346 | 7,847 | 6,615 | ||||||||||||
Environmental | |||||||||||||||||||
Reserves for loss and loss expense at beginning of year | $ | 20,838 | 14,866 | 22,115 | 16,101 | 22,387 | 16,368 | ||||||||||||
Incurred loss and loss expense | 3,059 | 2,877 | 126 | — | 1,406 | 1,303 | |||||||||||||
Less: loss and loss expense paid | (1,205 | ) | (1,057 | ) | (1,403 | ) | (1,235 | ) | (1,678 | ) | (1,570 | ) | |||||||
Reserves for loss and loss expense at the end of year | $ | 22,692 | 16,686 | 20,838 | 14,866 | 22,115 | 16,101 | ||||||||||||
Total Asbestos and Environmental Claims | |||||||||||||||||||
Reserves for loss and loss expense at beginning of year | $ | 28,415 | 21,212 | 29,962 | 22,716 | 30,411 | 23,161 | ||||||||||||
Incurred loss and loss expense | 3,059 | 2,877 | 126 | — | 1,483 | 1,380 | |||||||||||||
Less: loss and loss expense paid | (1,454 | ) | (1,306 | ) | (1,673 | ) | (1,504 | ) | (1,932 | ) | (1,825 | ) | |||||||
Reserves for loss and loss expense at the end of year | $ | 30,020 | 22,783 | 28,415 | 21,212 | 29,962 | 22,716 |
All Lines (in thousands, except for claim counts) | |||||||||||||||||||||||||
Incurred Loss and Allocated Loss Expenses, Net of Reinsurance | As of December 31, 2018 | ||||||||||||||||||||||||
Accident Year | Unaudited | IBNR | Cumulative Number of Reported Claims | ||||||||||||||||||||||
2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | ||||||||||||||||
2009 | $ | 920,143 | 941,972 | 916,691 | 883,590 | 870,057 | 869,927 | 857,960 | 853,401 | 848,413 | 846,017 | 34,771 | 85,707 | ||||||||||||
2010 | 950,114 | 973,742 | 977,959 | 956,600 | 943,118 | 922,404 | 915,131 | 907,074 | 904,561 | 42,224 | 94,400 | ||||||||||||||
2011 | 1,042,576 | 1,061,667 | 1,062,233 | 1,056,107 | 1,033,518 | 1,023,726 | 1,019,351 | 1,013,115 | 50,251 | 104,677 | |||||||||||||||
2012 | 1,065,437 | 1,071,290 | 1,020,655 | 998,028 | 973,089 | 973,644 | 973,411 | 66,071 | 103,949 | ||||||||||||||||
2013 | 1,044,142 | 1,062,045 | 1,047,230 | 1,021,007 | 1,002,316 | 987,763 | 86,250 | 91,084 | |||||||||||||||||
2014 | 1,107,513 | 1,133,798 | 1,146,990 | 1,124,014 | 1,104,218 | 117,760 | 94,774 | ||||||||||||||||||
2015 | 1,114,081 | 1,130,513 | 1,144,830 | 1,138,313 | 175,271 | 93,673 | |||||||||||||||||||
2016 | 1,188,608 | 1,203,634 | 1,227,142 | 319,825 | 93,724 | ||||||||||||||||||||
2017 | 1,270,110 | 1,313,372 | 471,978 | 96,426 | |||||||||||||||||||||
2018 | 1,413,800 | 677,444 | 96,408 | ||||||||||||||||||||||
Total | 10,921,712 |
All Lines (in thousands) | |||||||||||||||||||||
Cumulative Paid Loss and Allocated Loss Expenses, Net of Reinsurance | |||||||||||||||||||||
Accident Year | Unaudited | ||||||||||||||||||||
2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | ||||||||||||
2009 | $ | 277,275 | 442,417 | 540,982 | 634,902 | 695,249 | 736,100 | 760,589 | 775,885 | 784,713 | 791,281 | ||||||||||
2010 | 328,826 | 509,910 | 625,229 | 704,895 | 773,536 | 803,773 | 823,770 | 835,532 | 846,386 | ||||||||||||
2011 | 391,944 | 585,867 | 692,730 | 782,655 | 852,202 | 901,801 | 924,111 | 940,626 | |||||||||||||
2012 | 378,067 | 555,819 | 651,544 | 743,742 | 810,135 | 856,195 | 879,372 | ||||||||||||||
2013 | 335,956 | 518,872 | 644,475 | 748,758 | 833,823 | 872,331 | |||||||||||||||
2014 | 405,898 | 614,075 | 736,154 | 855,959 | 936,425 | ||||||||||||||||
2015 | 376,641 | 581,203 | 725,385 | 845,868 | |||||||||||||||||
2016 | 387,272 | 617,958 | 764,331 | ||||||||||||||||||
2017 | 433,440 | 678,453 | |||||||||||||||||||
2018 | 511,271 | ||||||||||||||||||||
Total | 8,066,344 | ||||||||||||||||||||
All outstanding liabilities before 2009, net of reinsurance | 361,631 | ||||||||||||||||||||
Liabilities for loss and loss expenses, net of reinsurance | 3,216,999 |
General Liability (in thousands, except for claim counts) | |||||||||||||||||||||||||
Incurred Loss and Allocated Loss Expenses, Net of Reinsurance | As of December 31, 2018 | ||||||||||||||||||||||||
Accident Year | Unaudited | IBNR | Cumulative Number of Reported Claims | ||||||||||||||||||||||
2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | ||||||||||||||||
2009 | $ | 237,913 | 241,625 | 233,530 | 223,146 | 212,947 | 211,243 | 206,387 | 205,741 | 201,568 | 203,176 | 15,951 | 13,873 | ||||||||||||
2010 | 215,208 | 228,680 | 242,499 | 237,154 | 222,328 | 211,619 | 208,968 | 202,394 | 206,146 | 18,634 | 12,696 | ||||||||||||||
2011 | 227,769 | 228,720 | 239,480 | 230,785 | 217,256 | 211,196 | 212,011 | 211,500 | 20,973 | 11,614 | |||||||||||||||
2012 | 238,979 | 245,561 | 215,083 | 194,144 | 175,305 | 175,268 | 180,659 | 25,251 | 9,960 | ||||||||||||||||
2013 | 250,609 | 251,421 | 239,776 | 225,709 | 210,785 | 203,831 | 35,971 | 10,326 | |||||||||||||||||
2014 | 244,312 | 249,946 | 257,132 | 239,333 | 234,082 | 57,041 | 10,513 | ||||||||||||||||||
2015 | 254,720 | 245,710 | 246,990 | 233,249 | 84,861 | 10,253 | |||||||||||||||||||
2016 | 277,214 | 272,048 | 277,986 | 142,991 | 10,213 | ||||||||||||||||||||
2017 | 293,747 | 293,128 | 202,925 | 10,032 | |||||||||||||||||||||
2018 | 317,934 | 270,267 | 8,741 | ||||||||||||||||||||||
Total | 2,361,691 |
General Liability (in thousands) | |||||||||||||||||||||
Cumulative Paid Loss and Allocated Loss Expenses, Net of Reinsurance | |||||||||||||||||||||
Accident Year | Unaudited | ||||||||||||||||||||
2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | ||||||||||||
2009 | $ | 14,346 | 37,143 | 64,970 | 103,213 | 130,554 | 151,920 | 166,767 | 176,316 | 180,621 | 183,263 | ||||||||||
2010 | 15,726 | 46,201 | 80,018 | 113,050 | 143,360 | 161,487 | 172,394 | 178,179 | 183,988 | ||||||||||||
2011 | 13,924 | 42,692 | 73,643 | 102,978 | 135,377 | 159,768 | 170,525 | 181,856 | |||||||||||||
2012 | 13,030 | 35,241 | 56,580 | 89,008 | 109,448 | 130,866 | 144,451 | ||||||||||||||
2013 | 12,789 | 35,113 | 72,127 | 104,587 | 139,114 | 153,628 | |||||||||||||||
2014 | 14,901 | 46,825 | 79,972 | 121,969 | 154,957 | ||||||||||||||||
2015 | 14,665 | 39,978 | 78,668 | 116,804 | |||||||||||||||||
2016 | 15,684 | 46,549 | 89,431 | ||||||||||||||||||
2017 | 17,366 | 49,470 | |||||||||||||||||||
2018 | 19,531 | ||||||||||||||||||||
Total | 1,277,379 | ||||||||||||||||||||
All outstanding liabilities before 2009, net of reinsurance | 90,918 | ||||||||||||||||||||
Liabilities for loss and loss expenses, net of reinsurance | 1,175,230 |
Workers Compensation (in thousands, except for claim counts) | |||||||||||||||||||||||||
Incurred Loss and Allocated Loss Expenses, Net of Reinsurance | As of December 31, 2018 | ||||||||||||||||||||||||
Accident Year | Unaudited | IBNR | Cumulative Number of Reported Claims | ||||||||||||||||||||||
2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | ||||||||||||||||
2009 | $ | 197,504 | 215,946 | 213,036 | 210,109 | 210,756 | 216,992 | 212,536 | 208,611 | 208,142 | 205,125 | 18,242 | 12,218 | ||||||||||||
2010 | 198,371 | 214,469 | 212,815 | 211,030 | 214,916 | 212,448 | 208,155 | 204,423 | 199,539 | 22,614 | 12,185 | ||||||||||||||
2011 | 205,238 | 218,973 | 214,743 | 215,114 | 210,591 | 205,708 | 200,674 | 194,821 | 26,226 | 11,850 | |||||||||||||||
2012 | 203,864 | 208,036 | 199,360 | 195,197 | 188,596 | 187,359 | 183,314 | 30,444 | 11,613 | ||||||||||||||||
2013 | 199,794 | 194,318 | 187,658 | 173,160 | 166,662 | 162,787 | 30,648 | 11,372 | |||||||||||||||||
2014 | 199,346 | 187,065 | 182,579 | 172,515 | 164,420 | 33,422 | 10,488 | ||||||||||||||||||
2015 | 193,729 | 194,639 | 183,604 | 179,642 | 34,940 | 10,544 | |||||||||||||||||||
2016 | 196,774 | 184,946 | 176,248 | 56,258 | 10,553 | ||||||||||||||||||||
2017 | 195,202 | 184,306 | 72,213 | 10,745 | |||||||||||||||||||||
2018 | 193,894 | 98,015 | 10,553 | ||||||||||||||||||||||
Total | 1,844,096 |
Workers Compensation (in thousands) | |||||||||||||||||||||
Cumulative Paid Loss and Allocated Loss Expenses, Net of Reinsurance | |||||||||||||||||||||
Accident Year | Unaudited | ||||||||||||||||||||
2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | ||||||||||||
2009 | $ | 37,885 | 87,299 | 117,019 | 133,116 | 145,417 | 154,726 | 160,529 | 164,336 | 167,894 | 171,205 | ||||||||||
2010 | 46,795 | 93,281 | 122,442 | 137,184 | 149,086 | 153,795 | 158,078 | 162,796 | 165,526 | ||||||||||||
2011 | 42,941 | 90,836 | 118,847 | 134,646 | 139,232 | 149,269 | 154,320 | 158,535 | |||||||||||||
2012 | 40,911 | 86,909 | 108,211 | 122,755 | 132,052 | 139,477 | 143,281 | ||||||||||||||
2013 | 36,829 | 74,568 | 96,376 | 109,739 | 118,669 | 124,130 | |||||||||||||||
2014 | 35,924 | 78,944 | 100,876 | 113,626 | 119,392 | ||||||||||||||||
2015 | 33,857 | 77,320 | 98,195 | 112,601 | |||||||||||||||||
2016 | 34,525 | 78,531 | 98,037 | ||||||||||||||||||
2017 | 40,375 | 82,216 | |||||||||||||||||||
2018 | 41,122 | ||||||||||||||||||||
Total | 1,216,045 | ||||||||||||||||||||
All outstanding liabilities before 2009, net of reinsurance | 245,831 | ||||||||||||||||||||
Liabilities for loss and loss expenses, net of reinsurance | 873,882 |
Commercial Automobile (in thousands, except for claim counts) | |||||||||||||||||||||||||
Incurred Loss and Allocated Loss Expenses, Net of Reinsurance | As of December 31, 2018 | ||||||||||||||||||||||||
Accident Year | Unaudited | IBNR | Cumulative Number of Reported Claims | ||||||||||||||||||||||
2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | ||||||||||||||||
2009 | $ | 199,541 | 191,079 | 182,724 | 169,858 | 166,682 | 162,911 | 161,251 | 161,923 | 161,300 | 161,057 | 574 | 24,749 | ||||||||||||
2010 | 187,562 | 189,305 | 187,778 | 181,923 | 179,854 | 172,969 | 173,157 | 173,471 | 173,080 | 762 | 25,406 | ||||||||||||||
2011 | 174,006 | 183,044 | 182,325 | 178,421 | 172,617 | 174,882 | 174,514 | 173,507 | 1,633 | 25,398 | |||||||||||||||
2012 | 179,551 | 191,947 | 183,527 | 184,289 | 184,367 | 186,128 | 184,633 | 2,259 | 24,025 | ||||||||||||||||
2013 | 188,289 | 205,282 | 209,197 | 207,994 | 210,410 | 207,975 | 3,756 | 25,556 | |||||||||||||||||
2014 | 200,534 | 212,725 | 216,824 | 219,925 | 218,172 | 8,718 | 27,528 | ||||||||||||||||||
2015 | 220,994 | 240,958 | 253,074 | 259,495 | 19,192 | 29,092 | |||||||||||||||||||
2016 | 255,187 | 274,367 | 285,302 | 46,407 | 30,855 | ||||||||||||||||||||
2017 | 301,274 | 329,389 | 98,125 | 32,122 | |||||||||||||||||||||
2018 | 347,908 | 164,906 | 32,895 | ||||||||||||||||||||||
Total | 2,340,518 |
Commercial Automobile (in thousands) | |||||||||||||||||||||
Cumulative Paid Loss and Allocated Loss Expenses, Net of Reinsurance | |||||||||||||||||||||
Accident Year | Unaudited | ||||||||||||||||||||
2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | ||||||||||||
2009 | $ | 63,126 | 94,406 | 113,697 | 137,564 | 149,949 | 155,560 | 158,303 | 159,723 | 160,013 | 160,456 | ||||||||||
2010 | 68,098 | 99,254 | 128,015 | 146,913 | 163,513 | 167,227 | 169,100 | 169,793 | 171,693 | ||||||||||||
2011 | 69,849 | 99,196 | 121,576 | 142,507 | 157,291 | 166,082 | 170,000 | 170,913 | |||||||||||||
2012 | 73,316 | 105,371 | 127,235 | 148,669 | 168,114 | 176,656 | 179,501 | ||||||||||||||
2013 | 76,469 | 109,893 | 140,015 | 169,850 | 189,626 | 200,750 | |||||||||||||||
2014 | 80,810 | 117,169 | 148,884 | 180,701 | 202,821 | ||||||||||||||||
2015 | 91,347 | 132,260 | 175,866 | 211,515 | |||||||||||||||||
2016 | 106,022 | 155,720 | 200,701 | ||||||||||||||||||
2017 | 117,287 | 178,823 | |||||||||||||||||||
2018 | 134,867 | ||||||||||||||||||||
Total | 1,812,040 | ||||||||||||||||||||
All outstanding liabilities before 2009, net of reinsurance | 3,842 | ||||||||||||||||||||
Liabilities for loss and loss expenses, net of reinsurance | 532,320 |
Businessowners' Policies (in thousands, except for claim counts) | |||||||||||||||||||||||||
Incurred Loss and Allocated Loss Expenses, Net of Reinsurance | As of December 31, 2018 | ||||||||||||||||||||||||
Accident Year | Unaudited | IBNR | Cumulative Number of Reported Claims | ||||||||||||||||||||||
2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | ||||||||||||||||
2009 | $ | 48,535 | 51,762 | 46,645 | 43,828 | 43,553 | 44,938 | 44,299 | 44,273 | 43,933 | 44,028 | 323 | 3,474 | ||||||||||||
2010 | 53,669 | 49,285 | 42,408 | 39,915 | 40,899 | 40,581 | 41,239 | 41,197 | 40,920 | 381 | 3,918 | ||||||||||||||
2011 | 54,469 | 57,083 | 51,047 | 58,242 | 59,256 | 58,966 | 58,456 | 58,735 | 1,140 | 4,959 | |||||||||||||||
2012 | 54,342 | 48,029 | 46,303 | 44,172 | 44,077 | 43,747 | 43,418 | 430 | 5,542 | ||||||||||||||||
2013 | 49,617 | 42,618 | 41,005 | 40,624 | 41,369 | 39,709 | 1,404 | 3,482 | |||||||||||||||||
2014 | 55,962 | 60,949 | 62,548 | 59,806 | 58,517 | 2,959 | 4,062 | ||||||||||||||||||
2015 | 52,871 | 53,768 | 57,245 | 55,925 | 6,215 | 3,952 | |||||||||||||||||||
2016 | 52,335 | 53,792 | 54,993 | 9,272 | 3,823 | ||||||||||||||||||||
2017 | 46,624 | 48,698 | 13,087 | 3,808 | |||||||||||||||||||||
2018 | 55,024 | 16,177 | 3,823 | ||||||||||||||||||||||
Total | 499,967 |
Businessowners' Policies (in thousands) | |||||||||||||||||||||
Cumulative Paid Loss and Allocated Loss Expenses, Net of Reinsurance | |||||||||||||||||||||
Accident Year | Unaudited | ||||||||||||||||||||
2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | ||||||||||||
2009 | $ | 18,915 | 29,612 | 32,689 | 36,073 | 40,052 | 42,895 | 43,358 | 43,448 | 43,547 | 43,596 | ||||||||||
2010 | 20,821 | 28,131 | 31,027 | 34,705 | 37,819 | 38,900 | 40,279 | 40,395 | 40,439 | ||||||||||||
2011 | 27,884 | 37,362 | 41,011 | 46,444 | 52,114 | 55,856 | 57,045 | 57,365 | |||||||||||||
2012 | 22,199 | 31,833 | 35,089 | 37,215 | 38,766 | 40,627 | 41,326 | ||||||||||||||
2013 | 17,412 | 26,592 | 30,845 | 34,760 | 37,993 | 38,464 | |||||||||||||||
2014 | 28,914 | 40,584 | 44,911 | 49,460 | 52,940 | ||||||||||||||||
2015 | 24,189 | 36,014 | 42,710 | 46,571 | |||||||||||||||||
2016 | 24,655 | 36,848 | 39,973 | ||||||||||||||||||
2017 | 21,865 | 31,337 | |||||||||||||||||||
2018 | 29,995 | ||||||||||||||||||||
Total | 422,006 | ||||||||||||||||||||
All outstanding liabilities before 2009, net of reinsurance | 7,783 | ||||||||||||||||||||
Liabilities for loss and loss expenses, net of reinsurance | 85,744 |
Commercial Property (in thousands, except for claim counts) | |||||||||||||||||||||||||
Incurred Loss and Allocated Loss Expenses, Net of Reinsurance | As of December 31, 2018 | ||||||||||||||||||||||||
Accident Year | Unaudited | IBNR | Cumulative Number of Reported Claims | ||||||||||||||||||||||
2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | ||||||||||||||||
2009 | $ | 82,619 | 82,124 | 82,025 | 82,014 | 80,774 | 80,455 | 80,558 | 80,545 | 80,416 | 80,410 | 2 | 7,009 | ||||||||||||
2010 | 105,647 | 96,851 | 97,386 | 96,127 | 95,530 | 95,363 | 95,178 | 95,155 | 95,142 | 4 | 7,668 | ||||||||||||||
2011 | 136,954 | 131,667 | 130,942 | 131,282 | 131,353 | 131,113 | 131,049 | 131,009 | 6 | 9,038 | |||||||||||||||
2012 | 118,464 | 114,224 | 115,375 | 116,658 | 117,102 | 117,170 | 117,225 | 21 | 8,515 | ||||||||||||||||
2013 | 88,101 | 90,639 | 90,103 | 90,005 | 90,436 | 90,278 | 28 | 5,713 | |||||||||||||||||
2014 | 141,192 | 136,249 | 136,820 | 138,751 | 138,155 | 57 | 6,514 | ||||||||||||||||||
2015 | 110,270 | 109,513 | 111,750 | 111,566 | 77 | 6,401 | |||||||||||||||||||
2016 | 121,927 | 126,185 | 125,937 | 405 | 6,727 | ||||||||||||||||||||
2017 | 138,773 | 149,106 | (76 | ) | 6,850 | ||||||||||||||||||||
2018 | 183,177 | 7,052 | 7,695 | ||||||||||||||||||||||
Total | 1,222,005 |
Commercial Property (in thousands) | |||||||||||||||||||||
Cumulative Paid Loss and Allocated Loss Expenses, Net of Reinsurance | |||||||||||||||||||||
Accident Year | Unaudited | ||||||||||||||||||||
2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | ||||||||||||
2009 | $ | 59,933 | 78,695 | 80,433 | 80,894 | 80,251 | 80,352 | 80,529 | 80,509 | 80,405 | 80,393 | ||||||||||
2010 | 69,543 | 91,918 | 94,602 | 95,111 | 95,270 | 95,147 | 95,156 | 95,150 | 95,138 | ||||||||||||
2011 | 94,538 | 127,580 | 129,579 | 130,681 | 131,060 | 131,115 | 131,089 | 131,100 | |||||||||||||
2012 | 81,528 | 108,834 | 111,503 | 114,699 | 116,291 | 116,625 | 116,671 | ||||||||||||||
2013 | 60,244 | 87,874 | 90,446 | 90,350 | 90,840 | 90,696 | |||||||||||||||
2014 | 101,131 | 132,909 | 136,634 | 137,883 | 137,418 | ||||||||||||||||
2015 | 79,048 | 106,182 | 109,829 | 110,994 | |||||||||||||||||
2016 | 83,966 | 118,789 | 122,930 | ||||||||||||||||||
2017 | 99,047 | 142,338 | |||||||||||||||||||
2018 | 135,416 | ||||||||||||||||||||
Total | 1,163,094 | ||||||||||||||||||||
All outstanding liabilities before 2009, net of reinsurance | 69 | ||||||||||||||||||||
Liabilities for loss and loss expenses, net of reinsurance | 58,980 |
Personal Automobile (in thousands, except for claim counts) | |||||||||||||||||||||||||
Incurred Loss and Allocated Loss Expenses, Net of Reinsurance | As of December 31, 2018 | ||||||||||||||||||||||||
Accident Year | Unaudited | IBNR | Cumulative Number of Reported Claims | ||||||||||||||||||||||
2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | ||||||||||||||||
2009 | $ | 93,808 | 103,319 | 105,033 | 103,908 | 104,734 | 103,866 | 103,393 | 103,412 | 103,348 | 103,303 | 146 | 17,346 | ||||||||||||
2010 | 103,340 | 110,075 | 112,346 | 109,515 | 107,490 | 107,405 | 107,224 | 107,054 | 106,887 | 160 | 20,822 | ||||||||||||||
2011 | 113,232 | 116,164 | 113,686 | 112,993 | 114,241 | 113,830 | 113,988 | 113,921 | 194 | 22,700 | |||||||||||||||
2012 | 113,771 | 114,921 | 109,832 | 109,324 | 110,294 | 110,300 | 109,795 | 205 | 22,332 | ||||||||||||||||
2013 | 108,417 | 109,620 | 106,225 | 106,703 | 107,759 | 107,680 | 288 | 22,373 | |||||||||||||||||
2014 | 102,250 | 109,325 | 106,757 | 107,452 | 106,821 | 774 | 22,504 | ||||||||||||||||||
2015 | 96,387 | 99,698 | 100,214 | 99,570 | 2,572 | 20,860 | |||||||||||||||||||
2016 | 92,727 | 98,032 | 100,202 | 6,252 | 19,803 | ||||||||||||||||||||
2017 | 101,880 | 105,139 | 13,162 | 20,679 | |||||||||||||||||||||
2018 | 111,594 | 23,506 | 21,748 | ||||||||||||||||||||||
Total | 1,064,912 |
Personal Automobile (in thousands) | |||||||||||||||||||||
Cumulative Paid Loss and Allocated Loss Expenses, Net of Reinsurance | |||||||||||||||||||||
Accident Year | Unaudited | ||||||||||||||||||||
2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | ||||||||||||
2009 | $ | 51,039 | 71,911 | 86,431 | 96,229 | 100,566 | 102,187 | 102,322 | 102,437 | 103,009 | 103,010 | ||||||||||
2010 | 58,786 | 82,490 | 95,300 | 101,540 | 104,061 | 105,849 | 106,453 | 106,733 | 106,722 | ||||||||||||
2011 | 61,323 | 82,102 | 93,878 | 105,068 | 111,085 | 112,732 | 113,551 | 113,664 | |||||||||||||
2012 | 63,704 | 82,729 | 94,842 | 102,977 | 107,890 | 109,355 | 109,447 | ||||||||||||||
2013 | 61,384 | 80,861 | 92,637 | 100,528 | 105,131 | 106,679 | |||||||||||||||
2014 | 62,519 | 83,739 | 92,589 | 99,173 | 104,055 | ||||||||||||||||
2015 | 58,725 | 76,470 | 87,163 | 92,102 | |||||||||||||||||
2016 | 57,961 | 76,823 | 86,752 | ||||||||||||||||||
2017 | 62,854 | 82,730 | |||||||||||||||||||
2018 | 69,721 | ||||||||||||||||||||
Total | 974,882 | ||||||||||||||||||||
All outstanding liabilities before 2009, net of reinsurance | 6,040 | ||||||||||||||||||||
Liabilities for loss and loss expenses, net of reinsurance | 96,070 |
Homeowners (in thousands, except for claim counts) | |||||||||||||||||||||||||
Incurred Loss and Allocated Loss Expenses, Net of Reinsurance | As of December 31, 2018 | ||||||||||||||||||||||||
Accident Year | Unaudited | IBNR | Cumulative Number of Reported Claims | ||||||||||||||||||||||
2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | ||||||||||||||||
2009 | $ | 47,636 | 44,511 | 42,609 | 40,313 | 61,927 | 40,400 | 40,465 | 40,457 | 40,451 | 40,500 | 70 | 5,634 | ||||||||||||
2010 | 68,373 | 67,525 | 63,285 | 97,761 | 62,462 | 62,402 | 62,339 | 62,392 | 62,402 | 83 | 9,132 | ||||||||||||||
2011 | 103,804 | 98,211 | 82,744 | 94,167 | 94,543 | 94,183 | 94,378 | 94,587 | 131 | 15,109 | |||||||||||||||
2012 | 87,260 | 82,745 | 86,560 | 86,667 | 86,271 | 86,330 | 86,483 | 237 | 16,939 | ||||||||||||||||
2013 | 73,670 | 72,528 | 71,494 | 72,145 | 71,714 | 72,148 | 331 | 7,747 | |||||||||||||||||
2014 | 80,111 | 82,461 | 83,637 | 83,844 | 83,539 | 411 | 8,770 | ||||||||||||||||||
2015 | 76,637 | 76,400 | 76,559 | 74,723 | 1,172 | 7,744 | |||||||||||||||||||
2016 | 60,105 | 60,931 | 62,391 | 1,837 | 6,869 | ||||||||||||||||||||
2017 | 59,167 | 67,978 | 1,969 | 7,299 | |||||||||||||||||||||
2018 | 62,961 | 6,660 | 7,062 | ||||||||||||||||||||||
Total | 707,712 |
Homeowners (in thousands) | |||||||||||||||||||||
Cumulative Paid Loss and Allocated Loss Expenses, Net of Reinsurance | |||||||||||||||||||||
Accident Year | Unaudited | ||||||||||||||||||||
2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | ||||||||||||
2009 | $ | 28,299 | 36,965 | 38,078 | 39,342 | 39,731 | 39,819 | 39,907 | 40,189 | 40,269 | 40,403 | ||||||||||
2010 | 43,699 | 58,638 | 60,295 | 61,106 | 62,155 | 62,227 | 62,241 | 62,272 | 62,283 | ||||||||||||
2011 | 71,668 | 89,963 | 91,718 | 92,185 | 93,312 | 93,720 | 94,007 | 94,412 | |||||||||||||
2012 | 69,056 | 79,584 | 82,720 | 84,250 | 85,196 | 85,562 | 85,642 | ||||||||||||||
2013 | 50,664 | 65,528 | 67,838 | 69,775 | 71,776 | 72,197 | |||||||||||||||
2014 | 61,561 | 76,007 | 79,751 | 81,664 | 82,583 | ||||||||||||||||
2015 | 52,589 | 70,078 | 72,202 | 72,927 | |||||||||||||||||
2016 | 42,252 | 57,333 | 59,546 | ||||||||||||||||||
2017 | 45,466 | 63,290 | |||||||||||||||||||
2018 | 49,430 | ||||||||||||||||||||
Total | 682,713 | ||||||||||||||||||||
All outstanding liabilities before 2009, net of reinsurance | 6,107 | ||||||||||||||||||||
Liabilities for loss and loss expenses, net of reinsurance | 31,106 |
E&S Casualty Lines (in thousands, except for claim counts) | |||||||||||||||||||||
Incurred Loss and Allocated Loss Expenses, Net of Reinsurance | As of December 31, 2018 | ||||||||||||||||||||
Accident Year | Unaudited | IBNR | Cumulative Number of Reported Claims | ||||||||||||||||||
2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | ||||||||||||||
2009 | $ | 885 | 1,053 | 938 | 728 | 710 | 96 | 737 | 739 | — | 274 | ||||||||||
2010 | 3,294 | 4,106 | 3,369 | 4,299 | 3,831 | 3,055 | 4,932 | 5,168 | — | 813 | |||||||||||
2011 | 8,127 | 7,102 | 9,853 | 12,207 | 10,273 | 9,652 | 10,228 | 12,119 | 276 | 1,321 | |||||||||||
2012 | 42,367 | 42,621 | 43,175 | 46,149 | 46,165 | 45,988 | 46,444 | 6,417 | 2,022 | ||||||||||||
2013 | 55,468 | 60,309 | 67,099 | 69,112 | 67,647 | 68,972 | 14,175 | 2,266 | |||||||||||||
2014 | 55,316 | 63,505 | 69,929 | 71,719 | 71,206 | 14,097 | 2,040 | ||||||||||||||
2015 | 75,498 | 76,432 | 82,404 | 90,488 | 24,516 | 2,746 | |||||||||||||||
2016 | 94,451 | 96,416 | 104,655 | 52,151 | 2,732 | ||||||||||||||||
2017 | 91,438 | 95,783 | 66,321 | 2,353 | |||||||||||||||||
2018 | 98,324 | 82,486 | 1,734 | ||||||||||||||||||
Total | 593,898 |
E&S Casualty Lines (in thousands) | |||||||||||||||||
Cumulative Paid Loss and Allocated Loss Expenses, Net of Reinsurance | |||||||||||||||||
Accident Year | Unaudited | ||||||||||||||||
2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | ||||||||||
2009 | $ | — | 198 | 431 | 605 | 626 | 709 | 737 | 739 | ||||||||
2010 | — | 1,218 | 2,570 | 3,574 | 4,078 | 4,513 | 4,610 | 4,908 | |||||||||
2011 | — | 806 | 3,200 | 6,445 | 9,954 | 9,912 | 10,256 | 9,819 | |||||||||
2012 | 3,722 | 7,914 | 16,430 | 25,064 | 32,343 | 36,278 | 38,298 | ||||||||||
2013 | 2,715 | 9,470 | 21,980 | 35,200 | 46,108 | 51,142 | |||||||||||
2014 | 2,353 | 12,234 | 25,571 | 43,877 | 53,780 | ||||||||||||
2015 | 3,036 | 13,057 | 29,389 | 50,712 | |||||||||||||
2016 | 3,720 | 16,195 | 33,950 | ||||||||||||||
2017 | 5,057 | 14,672 | |||||||||||||||
2018 | 5,509 | ||||||||||||||||
Total | 263,529 | ||||||||||||||||
All outstanding liabilities before 2009, net of reinsurance | 98 | ||||||||||||||||
Liabilities for loss and loss expenses, net of reinsurance | 330,467 |
(in thousands) | December 31, 2018 | ||
Net outstanding liabilities: | |||
Standard Commercial Lines | |||
General liability | $ | 1,175,230 | |
Workers compensation | 873,882 | ||
Commercial automobile | 532,320 | ||
Businessowners' policies | 85,744 | ||
Commercial property | 58,980 | ||
Other Standard Commercial Lines | 9,122 | ||
Total Standard Commercial Lines net outstanding liabilities | 2,735,278 | ||
Standard Personal Lines | |||
Personal automobile | 96,070 | ||
Homeowners | 31,106 | ||
Other Standard Personal Lines | 10,474 | ||
Total Standard Personal Lines net outstanding liabilities | 137,650 | ||
E&S Lines | |||
Casualty lines | 330,467 | ||
Property lines | 13,604 | ||
Total E&S Lines net outstanding liabilities | 344,071 | ||
Total liabilities for unpaid loss and loss expenses, net of reinsurance | 3,216,999 | ||
Reinsurance recoverable on unpaid claims: | |||
Standard Commercial Lines | |||
General liability | 181,102 | ||
Workers compensation | 220,683 | ||
Commercial automobile | 15,641 | ||
Businessowners' policies | 3,473 | ||
Commercial property | 12,620 | ||
Other Standard Commercial Lines | 2,909 | ||
Total Standard Commercial Lines reinsurance recoverable on unpaid loss | 436,428 | ||
Standard Personal Lines | |||
Personal automobile | 45,572 | ||
Homeowners | 1,346 | ||
Other Standard Personal Lines | 31,777 | ||
Total Standard Personal Lines reinsurance recoverable on unpaid loss | 78,695 | ||
E&S Lines | |||
Casualty lines | 21,898 | ||
Property lines | 367 | ||
Total E&S Lines reinsurance recoverable on unpaid loss | 22,265 | ||
Total reinsurance recoverable on unpaid loss | 537,388 | ||
Unallocated loss expenses | 139,481 | ||
Total gross liability for unpaid loss and loss expenses | $ | 3,893,868 |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance | ||||||||||
Years | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 |
General liability | 6.5% | 12.2 | 15.3 | 17.0 | 14.5 | 9.8 | 6.3 | 4.8 | 2.7 | 1.1 |
Workers compensation | 21.2 | 24.3 | 13.2 | 8.3 | 5.4 | 3.9 | 2.4 | 2.3 | 1.4 | 1.1 |
Commercial automobile | 37.9 | 17.3 | 14.5 | 13.1 | 9.5 | 4.0 | 1.6 | 0.8 | 0.7 | 0.4 |
Businessowners’ policies | 47.3 | 19.9 | 8.3 | 8.3 | 7.4 | 4.3 | 1.7 | 0.5 | 0.2 | 1.1 |
Commercial property | 70.7 | 25.2 | 2.7 | 1.1 | 0.2 | 0.1 | — | — | — | — |
Personal automobile | 57.1 | 18.5 | 10.5 | 7.2 | 4.3 | 1.5 | 0.4 | 0.1 | 0.2 | — |
Homeowners | 72.3 | 20.3 | 3.1 | 1.8 | 1.4 | 0.4 | 0.2 | 0.1 | 0.1 | 0.1 |
E&S Lines - casualty | 5.0 | 11.4 | 17.1 | 21.4 | 15.4 | 8.6 | 5.4 |
Outstanding Debt1 | 2018 | Carry Value | ||||||||||||||||||
($ in thousands) | Issuance Date | Maturity Date | Interest Rate | Original Amount | Debt Discount and Unamortized Issuance Costs | December 31, 2018 | December 31, 2017 | |||||||||||||
Description | ||||||||||||||||||||
Long-term: | ||||||||||||||||||||
(1) FHLBI | 12/16/2016 | 12/16/2026 | 3.03 | % | $ | 60,000 | — | 60,000 | 60,000 | |||||||||||
(2) FHLBNY | 8/15/2016 | 8/16/2021 | 1.56 | % | 25,000 | — | 25,000 | 25,000 | ||||||||||||
(2) FHLBNY | 7/21/2016 | 7/21/2021 | 1.61 | % | 25,000 | — | 25,000 | 25,000 | ||||||||||||
(3) Senior Notes | 2/8/2013 | 2/9/2043 | 5.875 | % | 185,000 | (4,229 | ) | 180,771 | 180,430 | |||||||||||
(4) Senior Notes | 11/3/2005 | 11/1/2035 | 6.70 | % | 100,000 | (931 | ) | 99,069 | 99,011 | |||||||||||
(5) Senior Notes | 11/16/2004 | 11/15/2034 | 7.25 | % | 50,000 | (300 | ) | 49,700 | 49,675 | |||||||||||
Total long-term debt | $ | 445,000 | (5,460 | ) | 439,540 | 439,116 |
Required as of | Actual as of | |||
December 31, 2018 | December 31, 2018 | |||
Consolidated net worth | Not less than $1.3 billion | $1.8 billion | ||
Statutory surplus | Not less than $750 million | $1.8 billion | ||
Debt-to-capitalization ratio1 | Not to exceed 35% | 19.7% | ||
A.M. Best financial strength rating | Minimum of A- | A |
• | Our Standard Commercial Lines, Standard Personal Lines, and E&S Lines are evaluated based on before and after-tax underwriting results (net premiums earned, incurred loss and loss expense, policyholders dividends, policy acquisition costs, and other underwriting expenses), return on equity ("ROE") contribution, and combined ratios. |
• | Our Investments segment is evaluated based on after-tax net investment income and its ROE contribution, as well as after-tax net realized and unrealized gains and losses. |
Revenue by Segment | Years ended December 31, | |||||||||
($ in thousands) | 2018 | 2017 | 2016 | |||||||
Standard Commercial Lines: | ||||||||||
Net premiums earned: | ||||||||||
Commercial automobile | $ | 493,093 | 442,818 | 398,942 | ||||||
Workers compensation | 317,616 | 317,982 | 308,233 | |||||||
General liability | 616,187 | 569,217 | 527,859 | |||||||
Commercial property | 329,660 | 311,932 | 293,438 | |||||||
Businessowners’ policies | 103,412 | 100,266 | 97,754 | |||||||
Bonds | 33,991 | 29,086 | 23,227 | |||||||
Other | 18,263 | 17,198 | 16,030 | |||||||
Miscellaneous income | 8,180 | 9,488 | 7,782 | |||||||
Total Standard Commercial Lines revenue | 1,920,402 | 1,797,987 | 1,673,265 | |||||||
Standard Personal Lines: | ||||||||||
Net premiums earned: | ||||||||||
Personal automobile | 168,250 | 153,147 | 142,876 | |||||||
Homeowners | 128,961 | 129,699 | 130,973 | |||||||
Other | 7,230 | 6,855 | 6,758 | |||||||
Miscellaneous income | 1,257 | 1,228 | 1,098 | |||||||
Total Standard Personal Lines revenue | 305,698 | 290,929 | 281,705 | |||||||
E&S Lines: | ||||||||||
Net premiums earned: | ||||||||||
Casualty lines | 164,313 | 157,366 | 151,638 | |||||||
Property lines | 55,253 | 55,461 | 51,844 | |||||||
Miscellaneous income | 1 | — | 1 | |||||||
Total E&S Lines revenue | 219,567 | 212,827 | 203,483 | |||||||
Investments: | ||||||||||
Net investment income | 195,336 | 161,882 | 130,754 | |||||||
Net realized and unrealized investment (losses) gains | (54,923 | ) | 6,359 | (4,937 | ) | |||||
Total Investments revenues | 140,413 | 168,241 | 125,817 | |||||||
Total revenues | $ | 2,586,080 | 2,469,984 | 2,284,270 |
Income Before and After Federal Income Tax | Years ended December 31, | |||||||||
($ in thousands) | 2018 | 2017 | 2016 | |||||||
Standard Commercial Lines: | ||||||||||
Underwriting gain, before federal income tax | $ | 109,104 | 149,514 | 146,435 | ||||||
Underwriting gain, after federal income tax | 86,192 | 97,184 | 95,183 | |||||||
Combined ratio | 94.3 | % | 91.6 | % | 91.2 | % | ||||
ROE contribution | 4.9 | % | 6.1 | 6.4 | ||||||
Standard Personal Lines: | ||||||||||
Underwriting gain, before federal income tax | 12,764 | 11,104 | 12,419 | |||||||
Underwriting gain, after federal income tax | 10,084 | 7,217 | 8,072 | |||||||
Combined ratio | 95.8 | % | 96.2 | % | 95.6 | % | ||||
ROE contribution | 0.6 | % | 0.4 | 0.6 | ||||||
E&S Lines: | ||||||||||
Underwriting loss, before federal income tax | (695 | ) | (6,282 | ) | (6,921 | ) | ||||
Underwriting loss, after federal income tax | (549 | ) | (4,083 | ) | (4,499 | ) | ||||
Combined ratio | 100.3 | % | 103.0 | % | 103.4 | % | ||||
ROE contribution | — | % | (0.3 | ) | (0.3 | ) | ||||
Investments: | ||||||||||
Net investment income | $ | 195,336 | 161,882 | 130,754 | ||||||
Net realized and unrealized investment (losses) gains | (54,923 | ) | 6,359 | (4,937 | ) | |||||
Total investment income, before federal income tax | 140,413 | 168,241 | 125,817 | |||||||
Tax on investment income | 19,560 | 45,588 | 30,621 | |||||||
Total investment income, after federal income tax | $ | 120,853 | 122,653 | 95,196 | ||||||
ROE contribution of after-tax net investment income | 6.9 | % | 7.5 | 6.5 |
Reconciliation of Segment Results to Income Before Federal Income Tax | Years ended December 31, | |||||||||
($ in thousands) | 2018 | 2017 | 2016 | |||||||
Underwriting gain (loss) | ||||||||||
Standard Commercial Lines | $ | 109,104 | 149,514 | 146,435 | ||||||
Standard Personal Lines | 12,764 | 11,104 | 12,419 | |||||||
E&S Lines | (695 | ) | (6,282 | ) | (6,921 | ) | ||||
Investment income | 140,413 | 168,241 | 125,817 | |||||||
Total all segments | 261,586 | 322,577 | 277,750 | |||||||
Interest expense | (24,419 | ) | (24,354 | ) | (22,771 | ) | ||||
Corporate expenses | (25,446 | ) | (36,255 | ) | (35,024 | ) | ||||
Income, before federal income tax | $ | 211,721 | 261,968 | 219,955 |
2018 | Income | Shares | Per Share | ||||||||
($ in thousands, except per share amounts) | (Numerator) | (Denominator) | Amount | ||||||||
Basic EPS: | |||||||||||
Net income available to common stockholders | $ | 178,939 | 58,950 | $ | 3.04 | ||||||
Effect of dilutive securities: | |||||||||||
Stock compensation plans | — | 763 | |||||||||
Diluted EPS: | |||||||||||
Net income available to common stockholders | $ | 178,939 | 59,713 | $ | 3.00 |
2017 | Income | Shares | Per Share | ||||||||
($ in thousands, except per share amounts) | (Numerator) | (Denominator) | Amount | ||||||||
Basic EPS: | |||||||||||
Net income available to common stockholders | $ | 168,826 | 58,458 | $ | 2.89 | ||||||
Effect of dilutive securities: | |||||||||||
Stock compensation plans | — | 899 | |||||||||
Diluted EPS: | |||||||||||
Net income available to common stockholders | $ | 168,826 | 59,357 | $ | 2.84 |
2016 | Income | Shares | Per Share | ||||||||
($ in thousands, except per share amounts) | (Numerator) | (Denominator) | Amount | ||||||||
Basic EPS: | |||||||||||
Net income available to common stockholders | $ | 158,495 | 57,889 | $ | 2.74 | ||||||
Effect of dilutive securities: | |||||||||||
Stock compensation plans | — | 858 | |||||||||
Diluted EPS: | |||||||||||
Net income available to common stockholders | $ | 158,495 | 58,747 | $ | 2.70 |
($ in thousands) | 2018 | 2017 | 2016 | |||||||
Tax at statutory rate (21% in 2018 and 35% in 2017 and 2016) | $ | 44,461 | 91,689 | 76,984 | ||||||
Tax-advantaged interest | (5,518 | ) | (11,510 | ) | (12,126 | ) | ||||
Dividends received deduction | (647 | ) | (1,961 | ) | (1,114 | ) | ||||
Executive compensation | 2,279 | — | 121 | |||||||
Stock-based compensation | (3,093 | ) | (4,281 | ) | — | |||||
Tax Reform deferred tax write off | — | 20,205 | — | |||||||
Other 1 | (4,700 | ) | (1,000 | ) | (2,405 | ) | ||||
Federal income tax expense from continuing operations | $ | 32,782 | 93,142 | 61,460 |
($ in thousands) | 2018 | 2017 | |||||
Deferred tax assets: | |||||||
Net loss reserve discounting | $ | 43,285 | 38,771 | ||||
Net unearned premiums | 53,556 | 50,267 | |||||
Employee benefits | 8,862 | 8,606 | |||||
Long-term incentive compensation plans | 9,095 | 12,221 | |||||
Temporary investment write-downs | 1,155 | 1,044 | |||||
Net operating loss | — | 54 | |||||
Other | 5,744 | 5,784 | |||||
Total deferred tax assets | 121,697 | 116,747 | |||||
Deferred tax liabilities: | |||||||
Deferred policy acquisition costs | 53,049 | 47,484 | |||||
Unrealized gains on investment securities | 502 | 26,183 | |||||
Other investment-related items, net | 4,904 | 2,500 | |||||
Accelerated depreciation and amortization | 9,702 | 8,590 | |||||
Total deferred tax liabilities | 68,157 | 84,757 | |||||
Net deferred federal income tax asset | $ | 53,540 | 31,990 |
December 31, | Pension Plan | ||||||
($ in thousands) | 2018 | 2017 | |||||
Change in Benefit Obligation: | |||||||
Benefit obligation, beginning of year | $ | 364,411 | 330,588 | ||||
Service cost | — | — | |||||
Interest cost | 12,428 | 12,490 | |||||
Actuarial (gains) losses | (31,738 | ) | 31,158 | ||||
Benefits paid | (10,422 | ) | (9,825 | ) | |||
Benefit obligation, end of year | $ | 334,679 | 364,411 | ||||
Change in Fair Value of Assets: | |||||||
Fair value of assets, beginning of year | $ | 363,673 | 316,515 | ||||
Actual return on plan assets, net of expenses | (21,571 | ) | 46,983 | ||||
Contributions by the employer to funded plans | — | 10,000 | |||||
Benefits paid | (10,422 | ) | (9,825 | ) | |||
Fair value of assets, end of year | $ | 331,680 | 363,673 | ||||
Funded status | $ | (2,999 | ) | (738 | ) |
Amounts Recognized in the Consolidated Balance Sheet: | |||||||
Liabilities | $ | (2,999 | ) | (738 | ) | ||
Net pension liability, end of year | $ | (2,999 | ) | (738 | ) |
Amounts Recognized in AOCI: | |||||||
Net actuarial loss | $ | 98,057 | 87,438 | ||||
Total | $ | 98,057 | 87,438 |
Other Information as of December 31: | |||||||
Accumulated benefit obligation | $ | 334,679 | 364,411 |
Weighted-Average Liability Assumptions as of December 31: | |||||
Discount rate | 4.46 | % | 3.78 |
Pension Plan | ||||||||||
($ in thousands) | 2018 | 2017 | 2016 | |||||||
Components of Net Periodic Benefit Cost and Other Amounts Recognized in Other Comprehensive Income: | ||||||||||
Net Periodic Benefit Cost: | ||||||||||
Service cost | $ | — | — | 1,647 | ||||||
Interest cost | 12,428 | 12,490 | 12,336 | |||||||
Expected return on plan assets | (22,767 | ) | (19,419 | ) | (17,309 | ) | ||||
Amortization of unrecognized actuarial loss | 1,981 | 2,001 | 6,299 | |||||||
Total net periodic cost | $ | (8,358 | ) | (4,928 | ) | 2,973 | ||||
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income: | ||||||||||
Net actuarial loss (gain) | $ | 12,600 | 3,594 | 11,316 | ||||||
Reversal of amortization of net actuarial loss | (1,981 | ) | (2,001 | ) | (6,299 | ) | ||||
Total recognized in other comprehensive income | $ | 10,619 | 1,593 | 5,017 | ||||||
Total recognized in net periodic benefit cost and other comprehensive income | $ | 2,261 | (3,335 | ) | 7,990 |
Pension Plan | |||||||
2018 | 2017 | 2016 | |||||
Weighted-Average Expense Assumptions for the years ended December 31: | |||||||
Discount rate | 3.78 | % | 4.41 | 4.69 | |||
Expected return on plan assets | 6.36 | 6.24 | 6.37 | ||||
Rate of compensation increase1 | — | — | — |
2018 | 2017 | ||||||||
Target Percentage2 | Actual Percentage | Actual Percentage | |||||||
Return seeking assets1 | 15%-70% | 43 | % | 58 | % | ||||
Liability hedging assets | 35%-75% | 38 | % | 40 | % | ||||
Short-term investments3 | 0%-2% | 19 | % | 2 | % | ||||
Total | 100 | % | 100 | % | 100 | % |
• | The investments in the global equity and liability hedging funds are collective investment funds that utilize a market approach wherein the published prices in the active market for identical assets are used. These investments are traded at their net asset value per share. There are no restrictions as to the redemption of these investments nor do we have any contractual obligations for further investment. These investments are classified as Level 1 in the fair value hierarchy. |
• | The investments in private limited partnerships and other private equity securities are valued utilizing net asset value as a practical expedient for fair value. These investments are not classified in the fair value hierarchy. |
• | Short-term investments are carried at cost, which approximates fair value. Given that these investments are listed on active exchanges, coupled with their liquid nature, these investments are classified as Level 1 in the fair value hierarchy. |
• | The deposit administration contract is carried at cost, which approximates fair value. Given the liquid nature of the underlying investments in overnight cash deposits and other short-term duration products, we have determined that a correlation exists between the deposit administration contract and other short-term investments, such as money market funds. As such, this investment is classified as Level 2 in the fair value hierarchy. |
December 31, 2018 | Fair Value Measurements at 12/31/18 Using | ||||||||||||
($ in thousands) | Assets Measured at Fair Value At 12/31/18 | Quoted Prices in Active Markets for Identical Assets/ Liabilities (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||
Description | |||||||||||||
Return seeking assets: | |||||||||||||
Global equity | $ | 113,409 | 113,409 | — | — | ||||||||
Private assets1: | |||||||||||||
Limited partnerships (at net asset value): | |||||||||||||
Real assets | 16,818 | — | — | — | |||||||||
Private equity | 878 | — | — | — | |||||||||
Private credit | 262 | — | — | — | |||||||||
Hedge fund | 7,889 | — | — | — | |||||||||
Total limited partnerships | 25,847 | — | — | — | |||||||||
Other private assets | 3,780 | — | — | — | |||||||||
Total private assets | 29,627 | — | — | — | |||||||||
Total return seeking assets | 143,036 | 113,409 | — | — | |||||||||
Liability hedging assets: | |||||||||||||
Fixed income | 106,000 | 106,000 | — | — | |||||||||
U.S. Treasury overlay | 18,528 | 18,528 | — | — | |||||||||
Total liability hedging assets | 124,528 | 124,528 | — | — | |||||||||
Cash and short-term investments: | |||||||||||||
Short-term investments | 62,788 | 62,788 | — | — | |||||||||
Deposit administration contracts | 1,482 | — | 1,482 | — | |||||||||
Total cash and short-term investments | 64,270 | 62,788 | 1,482 | — | |||||||||
Total invested assets | $ | 331,834 | 300,725 | 1,482 | — |
December 31, 2017 | Fair Value Measurements at 12/31/17 Using | ||||||||||||
($ in thousands) | Assets Measured at Fair Value At 12/31/17 | Quoted Prices in Active Markets for Identical Assets/ Liabilities (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||
Description | |||||||||||||
Return seeking assets: | |||||||||||||
Long-duration fixed income: | |||||||||||||
Global asset allocation fund | $ | 41,309 | 41,309 | — | — | ||||||||
Global equity: | |||||||||||||
Non-U.S. equity | 67,989 | 67,989 | — | — | |||||||||
U.S. equity | 66,353 | 66,353 | — | — | |||||||||
Total global equity | 134,342 | 134,342 | — | — | |||||||||
Private assets (limited partnerships, at net asset value)1: | |||||||||||||
Real assets | 16,305 | — | — | — | |||||||||
Private equity | 1,096 | — | — | — | |||||||||
Private credit | 460 | — | — | — | |||||||||
Hedge fund | 15,192 | — | — | — | |||||||||
Total limited partnerships | 33,053 | — | — | — | |||||||||
Other private assets | 980 | — | — | 980 | |||||||||
Total private assets | 34,033 | — | — | 980 | |||||||||
Total return seeking assets | 209,684 | 175,651 | — | 980 | |||||||||
Liability hedging assets: | |||||||||||||
Long-duration fixed income: | |||||||||||||
Extended duration fixed income | 146,837 | 146,837 | — | — | |||||||||
Total liability hedging assets | 146,837 | 146,837 | — | — | |||||||||
Cash and short-term investments: | |||||||||||||
Short-term investments | 4,939 | 4,939 | — | — | |||||||||
Deposit administration contracts | 1,615 | — | 1,615 | — | |||||||||
Total cash and short-term investments | 6,554 | 4,939 | 1,615 | — | |||||||||
Total invested assets | $ | 363,075 | 327,427 | 1,615 | 980 |
($ in thousands) | Pension Plan | |||
Benefits Expected to be Paid in Future | ||||
Fiscal Years: | ||||
2019 | $ | 13,920 | ||
2020 | 13,869 | |||
2021 | 15,026 | |||
2022 | 16,159 | |||
2023 | 17,134 | |||
2024-2028 | 99,197 |
• | The 2014 Omnibus Stock Plan, As Amended and Restated Effective as of May 2, 2018 (the "Stock Plan"); |
• | The Cash Incentive Plan, As Amended and Restated as of May 1, 2014 (the "Cash Plan"); |
• | The Employee Stock Purchase Plan (2009) ("ESPP"); and |
• | The Amended and Restated Stock Purchase Plan for Independent Insurance Agencies (2010), Amended and Restated as of February 1, 2017 (the "Agent Plan"). |
Plan | Approvals |
Stock Plan | Approved effective as of May 1, 2014 by stockholders on April 23, 2014. Most recently amended and restated plan was approved effective May 2, 2018 by stockholders on May 2, 2018. |
Cash Plan | Approved effective April 1, 2005 by stockholders on April 27, 2005. Most recently amended and restated plan was approved effective May 1, 2014 by stockholders on April 23, 2014. |
ESPP | Approved by stockholders on April 29, 2009 effective July 1, 2009. |
Agent Plan | Approved by stockholders on April 26, 2006. Most recently amended and restated plan was approved on December 13, 2016 by the Parent's Board of Directors' Salary and Employee Benefits Committee. The amendment was effective February 1, 2017. |
Plan | Types of Share-Based Payments Issued |
Stock Plan | Qualified and nonqualified stock options, stock appreciation rights ("SARs"), restricted stock, restricted stock units ("RSUs"), stock grants, and other awards valued in whole or in part by reference to the Parent's common stock. The maximum exercise period for an option grant under this plan is 10 years from the date of the grant. Dividend equivalent units ("DEUs") are earned during the vesting period on RSU grants. The DEUs are reinvested in the Parent's common stock at fair value on each dividend payment date. The requisite service period for grants to employees under this plan is the lesser of: (i) the stated vested date, which is typically three years from issuance; or (ii) the date the employee becomes eligible to retire. |
Cash Plan | Cash incentive units (“CIUs”). The initial dollar value of each CIU will be adjusted to reflect the percentage increase or decrease in the total shareholder return on the Parent's common stock over a specified performance period. In addition, for certain grants, the number of CIUs granted will be increased or decreased to reflect our performance on specified performance indicators as compared to targeted peer companies. The requisite service period for grants under this plan is the lesser of: (i) the stated vested date, which is typically three years from issuance; or (ii) the date the employee becomes eligible to retire. |
ESPP | Enables employees to purchase shares of the Parent’s common stock. The purchase price is the lower of: (i) 85% of the closing market price at the time the option is granted; or (ii) 85% of the closing price at the time the option is exercised. Shares are generally issued on June 30 and December 31 of each year. |
Agent Plan | Quarterly offerings to purchase the Parent's common stock at a 10% discount with a one year restricted period during which the shares purchased cannot be sold or transferred. Only our independent retail insurance agencies and wholesale general agencies, and certain eligible persons associated with the agencies, are eligible to participate in this plan. |
As of December 31, 2018 | Authorized | Available for Issuance | Awards Outstanding | |||
Stock Plan | 4,750,000 | 3,461,192 | 864,478 | |||
ESPP | 1,500,000 | 429,181 | — | |||
Agent Plan | 3,000,000 | 1,776,359 | — |
December 31, 2018 | Types of Share-Based Payments Issued | Reserve Shares | Awards Outstanding1 | ||
Plan | |||||
2005 Omnibus Stock Plan ("2005 Stock Plan") | Qualified and nonqualified stock options, SARs, restricted stock, RSUs, phantom stock, stock bonuses, and other awards in such amounts and with such terms and conditions as it determined, subject to the provisions of the 2005 Stock Plan. The maximum exercise period for an option grant under this plan is 10 years from the date of the grant. DEUs are earned during the vesting period on RSU grants. The DEUs are reinvested in the Parent's common stock at fair value on each dividend payment date. | 2,099,403 | 174,003 | ||
Parent's Stock Compensation Plan for Non-employee Directors ("Directors Stock Compensation Plan") | Directors could elect to receive a portion of their annual compensation in shares of the Parent's common stock. | 65,770 | 65,770 |
Number of Shares | Weighted Average Grant Date Fair Value | ||||||
Unvested RSU awards at December 31, 2017 | 865,587 | $ | 33.66 | ||||
Granted in 2018 | 303,550 | 55.96 | |||||
Vested in 2018 | (303,606 | ) | 26.57 | ||||
Forfeited in 2018 | (19,226 | ) | 42.62 | ||||
Unvested RSU awards at December 31, 2018 | 846,305 | $ | 44.00 |
Number of Shares | Weighted Average Exercise Price | Weighted Average Remaining Contractual Life in Years | Aggregate Intrinsic Value ($ in thousands) | ||||||||||
Outstanding at December 31, 2017 | 229,864 | $ | 15.38 | ||||||||||
Granted in 2018 | — | — | |||||||||||
Exercised in 2018 | (103,129 | ) | 16.62 | ||||||||||
Forfeited or expired in 2018 | — | — | |||||||||||
Outstanding at December 31, 2018 | 126,735 | $ | 14.37 | 0.80 | $ | 5,903 | |||||||
Exercisable at December 31, 2018 | 126,735 | $ | 14.37 | 0.80 | $ | 5,903 |
2018 | 2017 | 2016 | ||||
ESPP Issuances | 70,448 | 75,093 | 88,432 | |||
Agent Plan Issuances | 41,134 | 49,794 | 69,867 |
ESPP | |||||||
2018 | 2017 | 2016 | |||||
Risk-free interest rate | 1.88 | % | 1.07 | 0.47 | |||
Expected term | 6 months | 6 months | 6 months | ||||
Dividend yield | 1.3 | % | 1.3 | 1.7 | |||
Expected volatility | 18 | % | 24 | 31 |
2018 | 2017 | 2016 | ||||||||
RSUs | $ | 55.96 | 42.66 | 32.53 | ||||||
ESPP: | ||||||||||
Six month option | 2.67 | 2.73 | 2.63 | |||||||
Discount of grant date market value | 8.50 | 7.06 | 5.23 | |||||||
Total ESPP | 11.17 | 9.79 | 7.86 | |||||||
Agent Plan: | ||||||||||
Discount of grant date market value | 5.99 | 5.04 | 3.79 |
($ in millions) | 2018 | 2017 | 2016 | ||||||
Share-based compensation expense, pre-tax | $ | 19.3 | 31.2 | 30.3 | |||||
Income tax benefit, including the benefit related to stock grants that have vested during the year | (7.0 | ) | (15.0 | ) | (10.3 | ) | |||
Share-based compensation expense, after-tax | $ | 12.3 | 16.2 | 20.0 |
($ in millions) | Capital Leases | Operating Leases | Total | |||||
2019 | $ | 0.7 | 7.8 | 8.5 | ||||
2020 | 0.1 | 7.4 | 7.5 | |||||
2021 | — | 5.1 | 5.1 | |||||
2022 | — | 3.6 | 3.6 | |||||
2023 | — | 2.9 | 2.9 | |||||
After 2023 | — | 9.7 | 9.7 | |||||
Total minimum payment required | $ | 0.8 | 36.5 | 37.3 |
State of Domicile | Unassigned Surplus | Statutory Surplus | Statutory Net Income | |||||||||||||||||||||
($ in millions) | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | 2016 | |||||||||||||||||
SICA | New Jersey | $ | 478.6 | 455.5 | 632.8 | 609.7 | 78.0 | 84.6 | 72.2 | |||||||||||||||
Selective Way Insurance Company ("SWIC") | New Jersey | 300.2 | 276.1 | 349.3 | 325.1 | 47.5 | 43.6 | 41.2 | ||||||||||||||||
SICSC | Indiana | 119.4 | 112.9 | 150.7 | 144.1 | 16.5 | 17.9 | 17.4 | ||||||||||||||||
SICSE | Indiana | 92.2 | 86.2 | 117.7 | 111.8 | 12.9 | 14.7 | 13.4 | ||||||||||||||||
SICNY | New York | 86.5 | 78.8 | 114.2 | 106.5 | 12.0 | 13.4 | 12.9 | ||||||||||||||||
Selective Insurance Company of New England ("SICNE") | New Jersey | 19.9 | 16.1 | 50.0 | 46.3 | 5.6 | 6.3 | 5.9 | ||||||||||||||||
Selective Auto Insurance Company of New Jersey ("SAICNJ") | New Jersey | 50.3 | 42.1 | 93.2 | 84.9 | 9.9 | 11.4 | 11.5 | ||||||||||||||||
MUSIC | New Jersey | 23.0 | 21.4 | 91.5 | 89.9 | 9.4 | 10.3 | 9.7 | ||||||||||||||||
Selective Casualty Insurance Company ("SCIC") | New Jersey | 44.9 | 34.5 | 119.3 | 109.0 | 13.3 | 13.4 | 12.6 | ||||||||||||||||
Selective Fire and Casualty Insurance Company ("SFCIC") | New Jersey | 17.8 | 13.7 | 49.7 | 45.6 | 5.5 | 5.6 | 5.5 | ||||||||||||||||
Total | $ | 1,232.8 | 1,137.3 | 1,768.4 | 1,672.9 | 210.6 | 221.2 | 202.3 |
Dividends | Twelve Months ended December 31, 2018 | 2019 | ||||||||
($ in millions) | State of Domicile | Ordinary Dividends Paid | Maximum Ordinary Dividends | |||||||
SICA | New Jersey | $ | 43.0 | $ | 78.0 | |||||
SWIC | New Jersey | 19.0 | 47.5 | |||||||
SICSC | Indiana | 10.0 | 16.5 | |||||||
SICSE | Indiana | 7.5 | 12.9 | |||||||
SICNY | New York | 4.5 | 11.4 | |||||||
SICNE | New Jersey | 2.0 | 5.6 | |||||||
SAICNJ | New Jersey | 2.5 | 9.9 | |||||||
MUSIC | New Jersey | 7.1 | 9.4 | |||||||
SCIC | New Jersey | 3.0 | 13.3 | |||||||
SFCIC | New Jersey | 1.5 | 5.5 | |||||||
Total | $ | 100.1 | $ | 210.0 |
First Quarter | Second Quarter | Third Quarter | Fourth Quarter1 | ||||||||||||||||||||||
(unaudited, $ in thousands, except per share data) | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | |||||||||||||||||
Net premiums earned | $ | 591,828 | 560,854 | 604,836 | 568,030 | 614,277 | 572,055 | 625,288 | 590,088 | ||||||||||||||||
Net investment income earned | 43,231 | 37,419 | 45,553 | 41,430 | 52,443 | 40,446 | 54,109 | 42,587 | |||||||||||||||||
Net realized and unrealized (losses) gains2 | (10,549 | ) | (1,045 | ) | (1,652 | ) | 1,734 | (4,787 | ) | 6,798 | (37,935 | ) | (1,128 | ) | |||||||||||
Other income | 2,179 | 3,241 | 3,179 | 3,291 | 2,538 | 1,994 | 1,542 | 2,190 | |||||||||||||||||
Total revenues | 626,689 | 600,469 | 651,916 | 614,485 | 664,471 | 621,293 | 643,004 | 633,737 | |||||||||||||||||
Income before federal income taxes | 19,931 | 67,574 | 72,525 | 58,929 | 67,130 | 67,315 | 52,135 | 68,150 | |||||||||||||||||
Net income | 18,925 | 50,440 | 58,819 | 41,426 | 55,435 | 46,718 | 45,760 | 30,242 | |||||||||||||||||
Net income per share: | |||||||||||||||||||||||||
Basic | 0.32 | 0.87 | 1.00 | 0.71 | 0.94 | 0.80 | 0.77 | 0.52 | |||||||||||||||||
Diluted | 0.32 | 0.85 | 0.99 | 0.70 | 0.93 | 0.79 | 0.76 | 0.51 |
• | Pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of the assets of the company; |
• | Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and |
• | Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company's assets that could have a material effect on the financial statements. |
Form 10-K | |
Page | |
Consolidated Balance Sheets as of December 31, 2018 and 2017 | |
Consolidated Statements of Income for the Years Ended December 31, 2018, 2017, and 2016 | |
Consolidated Statements of Comprehensive Income for the Years Ended December 31, 2018, 2017, and 2016 | |
Consolidated Statements of Stockholders' Equity for the Years Ended December 31, 2018, 2017, and 2016 | |
Consolidated Statements of Cash Flows for the Years Ended December 31, 2018, 2017, and 2016 | |
Notes to Consolidated Financial Statements, December 31, 2018, 2017, and 2016 |
Form 10-K | ||
Page | ||
Schedule I | Summary of Investments – Other than Investments in Related Parties at December 31, 2018 | |
Schedule II | Condensed Financial Information of Registrant at December 31, 2018 and 2017 and for the Years Ended December 31, 2018, 2017, and 2016 | |
Schedule III | Supplementary Insurance Information for the Years Ended December 31, 2018, 2017, and 2016 | |
Schedule IV | Reinsurance for the Years Ended December 31, 2018, 2017, and 2016 | |
Schedule V | Allowance for Uncollectible Premiums and Other Receivables for the Years Ended December 31, 2018, 2017, and 2016 |
Types of investment | ||||||||||
($ in thousands) | Amortized Cost or Cost | Fair Value | Carrying Amount | |||||||
Fixed income securities: | ||||||||||
Held-to-maturity: | ||||||||||
Obligations of states and political subdivisions | $ | 17,431 | 17,969 | 17,470 | ||||||
Public utilities | 4,707 | 5,264 | 4,818 | |||||||
All other corporate securities | 14,883 | 15,084 | 14,822 | |||||||
Total fixed income securities, held-to-maturity | 37,021 | 38,317 | 37,110 | |||||||
Available-for-sale: | ||||||||||
U.S. government and government agencies | 120,092 | 121,310 | 121,310 | |||||||
Foreign government | 23,202 | 23,131 | 23,131 | |||||||
Obligations of states and political subdivisions | 1,121,615 | 1,138,469 | 1,138,469 | |||||||
Public utilities | 28,464 | 28,393 | 28,393 | |||||||
All other corporate securities | 1,611,388 | 1,589,015 | 1,589,015 | |||||||
Collateralized loan obligation securities and other asset-backed securities | 720,193 | 717,362 | 717,362 | |||||||
Commercial mortgage-backed securities | 527,409 | 527,078 | 527,078 | |||||||
Residential mortgage-backed securities | 1,118,435 | 1,128,342 | 1,128,342 | |||||||
Total fixed income securities, available-for-sale | 5,270,798 | 5,273,100 | 5,273,100 | |||||||
Equity securities: | ||||||||||
Common stock: | ||||||||||
Public utilities | 2,416 | 2,732 | 2,732 | |||||||
Banks, trusts and insurance companies | 7,448 | 8,331 | 8,331 | |||||||
Industrial, miscellaneous and all other | 125,361 | 133,664 | 133,664 | |||||||
Nonredeemable preferred stock | 2,889 | 2,912 | 2,912 | |||||||
Total equity securities | 138,114 | 147,639 | 147,639 | |||||||
Short-term investments | 323,864 | 323,864 | 323,864 | |||||||
Other investments | 178,938 | 178,938 | ||||||||
Total investments | $ | 5,948,735 | 5,960,651 |
December 31, | |||||||
($ in thousands, except share amounts) | 2018 | 2017 | |||||
Assets: | |||||||
Fixed income securities, available-for-sale – at fair value (amortized cost: $111,208 – 2018; $89,799 – 2017) | $ | 110,098 | 89,872 | ||||
Short-term investments | 35,358 | 24,080 | |||||
Cash | 505 | 534 | |||||
Investment in subsidiaries | 2,057,218 | 2,013,304 | |||||
Current federal income tax | 14,161 | 22,266 | |||||
Deferred federal income tax | 10,346 | 13,239 | |||||
Other assets | 1,186 | 871 | |||||
Total assets | $ | 2,228,872 | 2,164,166 | ||||
Liabilities: | |||||||
Long-term debt | $ | 329,540 | 329,116 | ||||
Intercompany notes payable | 77,517 | 78,443 | |||||
Accrued long-term stock compensation | 21,574 | 37,017 | |||||
Other liabilities | 8,439 | 6,633 | |||||
Total liabilities | $ | 437,070 | 451,209 | ||||
Stockholders’ Equity: | |||||||
Preferred stock at $0 par value per share: | |||||||
Authorized shares 5,000,000; no shares issued or outstanding | $ | — | — | ||||
Common stock of $2 par value per share: | |||||||
Authorized shares: 360,000,000 | |||||||
Issued: 102,848,394 – 2018; 102,284,564 – 2017 | 205,697 | 204,569 | |||||
Additional paid-in capital | 390,315 | 367,717 | |||||
Retained earnings | 1,858,414 | 1,698,613 | |||||
Accumulated other comprehensive (loss) income | (77,956 | ) | 20,170 | ||||
Treasury stock – at cost (shares: 43,899,840 – 2018; 43,789,442 – 2017) | (584,668 | ) | (578,112 | ) | |||
Total stockholders’ equity | 1,791,802 | 1,712,957 | |||||
Total liabilities and stockholders’ equity | $ | 2,228,872 | 2,164,166 |
Year ended December 31, | ||||||||||
($ in thousands) | 2018 | 2017 | 2016 | |||||||
Revenues: | ||||||||||
Dividends from subsidiaries | $ | 100,060 | 80,096 | 61,014 | ||||||
Net investment income earned | 3,425 | 2,044 | 1,259 | |||||||
Net realized losses | (1,567 | ) | (15 | ) | (220 | ) | ||||
Total revenues | 101,918 | 82,125 | 62,053 | |||||||
Expenses: | ||||||||||
Interest expense | 24,652 | 24,721 | 24,030 | |||||||
Other expenses | 25,446 | 36,251 | 35,020 | |||||||
Total expenses | 50,098 | 60,972 | 59,050 | |||||||
Income before federal income tax | 51,820 | 21,153 | 3,003 | |||||||
Federal income tax (benefit) expense: | ||||||||||
Current | (14,173 | ) | (22,187 | ) | (17,924 | ) | ||||
Deferred | 3,141 | 6,311 | (2,143 | ) | ||||||
Total federal income tax benefit | (11,032 | ) | (15,876 | ) | (20,067 | ) | ||||
Net income before equity in undistributed income of subsidiaries | 62,852 | 37,029 | 23,070 | |||||||
Equity in undistributed income of subsidiaries, net of tax | 116,087 | 131,797 | 135,425 | |||||||
Net income | $ | 178,939 | 168,826 | 158,495 |
Year ended December 31, | ||||||||||
($ in thousands) | 2018 | 2017 | 2016 | |||||||
Operating Activities: | ||||||||||
Net income | $ | 178,939 | 168,826 | 158,495 | ||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||
Equity in undistributed income of subsidiaries, net of tax | (116,087 | ) | (131,797 | ) | (135,425 | ) | ||||
Stock-based compensation expense | 14,507 | 12,089 | 10,449 | |||||||
Net realized losses | 1,567 | 15 | 220 | |||||||
Amortization – other | 567 | 678 | 648 | |||||||
Changes in assets and liabilities: | ||||||||||
(Decrease) increase in accrued long-term stock compensation | (15,443 | ) | 4,988 | 5,564 | ||||||
Decrease (increase) in net federal income taxes | 11,246 | 3,811 | (3,612 | ) | ||||||
Increase in other assets | (343 | ) | (60 | ) | (202 | ) | ||||
Increase in other liabilities | 1,712 | 714 | 80 | |||||||
Net cash provided by operating activities | 76,665 | 59,264 | 36,217 | |||||||
Investing Activities: | ||||||||||
Purchase of fixed income securities, available-for-sale | (75,046 | ) | (58,832 | ) | (45,789 | ) | ||||
Redemption and maturities of fixed income securities, available-for-sale | 6,849 | 10,465 | 14,983 | |||||||
Sale of fixed income securities, available-for-sale | 45,099 | 31,819 | 18,768 | |||||||
Purchase of short-term investments | (207,115 | ) | (185,590 | ) | (119,501 | ) | ||||
Sale of short-term investments | 195,846 | 179,292 | 130,841 | |||||||
Net cash used in investing activities | (34,367 | ) | (22,846 | ) | (698 | ) | ||||
Financing Activities: | ||||||||||
Dividends to stockholders | (42,097 | ) | (37,045 | ) | (33,758 | ) | ||||
Acquisition of treasury stock | (6,556 | ) | (6,015 | ) | (4,992 | ) | ||||
Net proceeds from stock purchase and compensation plans | 7,252 | 7,599 | 7,811 | |||||||
Excess tax benefits from share-based payment arrangements | — | — | 1,819 | |||||||
Principal payment on borrowings from subsidiaries | (926 | ) | (881 | ) | (6,839 | ) | ||||
Net cash used in financing activities | (42,327 | ) | (36,342 | ) | (35,959 | ) | ||||
Net (decrease) increase in cash | (29 | ) | 76 | (440 | ) | |||||
Cash, beginning of year | 534 | 458 | 898 | |||||||
Cash, end of year | $ | 505 | 534 | 458 |
($ in thousands) | Deferred policy acquisition costs | Reserve for loss and loss expense | Unearned premiums | Net premiums earned | Net investment income1 | Loss and loss expense incurred | Amortization of deferred policy acquisition costs | Other operating expenses2 | Net premiums written | |||||||||||||||||||
Standard Commercial Lines Segment | $ | 206,391 | 3,283,531 | 1,020,054 | 1,912,222 | — | 1,141,038 | 412,420 | 249,660 | 1,975,683 | ||||||||||||||||||
Standard Personal Lines Segment | 18,070 | 223,223 | 304,085 | 304,441 | — | 206,752 | 33,617 | 51,308 | 309,277 | |||||||||||||||||||
E&S Lines Segment | 28,151 | 387,114 | 107,793 | 219,566 | — | 150,344 | 49,005 | 20,912 | 229,326 | |||||||||||||||||||
Investments Segment | — | — | — | — | 140,413 | — | — | — | — | |||||||||||||||||||
Total | $ | 252,612 | 3,893,868 | 1,431,932 | 2,436,229 | 140,413 | 1,498,134 | 495,042 | 321,880 | 2,514,286 |
Other insurance expenses | $ | 331,318 | |
Other income | (9,438 | ) | |
Total | $ | 321,880 |
($ in thousands) | Deferred policy acquisition costs | Reserve for loss and loss expense | Unearned premiums | Net premiums earned | Net investment income1 | Loss and loss expense incurred | Amortization of deferred policy acquisition costs | Other operating expenses2 | Net premiums written | |||||||||||||||||||
Standard Commercial Lines Segment | $ | 193,408 | 3,165,217 | 956,173 | 1,788,499 | — | 1,008,150 | 387,552 | 243,283 | 1,858,735 | ||||||||||||||||||
Standard Personal Lines Segment | 16,952 | 263,166 | 295,435 | 289,701 | — | 189,294 | 32,542 | 56,761 | 296,775 | |||||||||||||||||||
E&S Lines Segment | 24,695 | 342,857 | 98,036 | 212,827 | — | 147,630 | 49,142 | 22,337 | 215,131 | |||||||||||||||||||
Investments Segment | — | — | — | — | 168,241 | — | — | — | — | |||||||||||||||||||
Total | $ | 235,055 | 3,771,240 | 1,349,644 | 2,291,027 | 168,241 | 1,345,074 | 469,236 | 322,381 | 2,370,641 |
Other insurance expenses | $ | 333,097 | |
Other income | (10,716 | ) | |
Total | $ | 322,381 |
($ in thousands) | Deferred policy acquisition costs | Reserve for loss and loss expense | Unearned premiums | Net premiums earned | Net investment income1 | Loss and loss expense incurred | Amortization of deferred policy acquisition costs | Other operating expenses2 | Net premiums written | |||||||||||||||||||
Standard Commercial Lines Segment | $ | 181,193 | 3,098,554 | 884,976 | 1,665,483 | — | 913,506 | 367,813 | 237,729 | 1,745,782 | ||||||||||||||||||
Standard Personal Lines Segment | 16,664 | 286,081 | 282,111 | 280,607 | — | 177,749 | 34,105 | 56,334 | 281,822 | |||||||||||||||||||
E&S Lines Segment | 24,707 | 307,084 | 95,732 | 203,482 | — | 143,542 | 48,410 | 18,451 | 209,684 | |||||||||||||||||||
Investments Segment | — | — | — | — | 125,817 | — | — | — | — | |||||||||||||||||||
Total | $ | 222,564 | 3,691,719 | 1,262,819 | 2,149,572 | 125,817 | 1,234,797 | 450,328 | 312,514 | 2,237,288 |
Other insurance expenses | $ | 321,395 | |
Other income | (8,881 | ) | |
Total | $ | 312,514 |
($ thousands) | Direct Amount | Assumed from Other Companies | Ceded to Other Companies | Net Amount | % of Amount Assumed to Net | |||||||||||
2018 | ||||||||||||||||
Premiums earned: | ||||||||||||||||
Accident and health insurance | $ | 19 | — | 19 | — | — | ||||||||||
Property and liability insurance | 2,808,745 | 25,831 | 398,347 | 2,436,229 | 1 | % | ||||||||||
Total premiums earned | 2,808,764 | 25,831 | 398,366 | 2,436,229 | 1 | % | ||||||||||
2017 | ||||||||||||||||
Premiums earned: | ||||||||||||||||
Accident and health insurance | $ | 24 | — | 24 | — | — | ||||||||||
Property and liability insurance | 2,647,464 | 25,831 | 382,268 | 2,291,027 | 1 | % | ||||||||||
Total premiums earned | 2,647,488 | 25,831 | 382,292 | 2,291,027 | 1 | % | ||||||||||
2016 | ||||||||||||||||
Premiums earned: | ||||||||||||||||
Accident and health insurance | $ | 32 | — | — | 32 | — | ||||||||||
Property and liability insurance | 2,484,683 | 28,214 | 363,357 | 2,149,540 | 1 | % | ||||||||||
Total premiums earned | 2,484,715 | 28,214 | 363,357 | 2,149,572 | 1 | % |
($ in thousands) | 2018 | 2017 | 2016 | |||||||
Balance, January 1 | $ | 14,600 | 11,480 | 10,122 | ||||||
Additions | 4,022 | 6,414 | 4,669 | |||||||
Deductions | (4,722 | ) | (3,294 | ) | (3,311 | ) | ||||
Balance, December 31 | $ | 13,900 | 14,600 | 11,480 |
Exhibit | ||
Number | ||
Amended and Restated Certificate of Incorporation of Selective Insurance Group, Inc., filed May 4, 2010 (incorporated by reference herein to Exhibit 3.1 of the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2010, File No. 001-33067). | ||
By-Laws of Selective Insurance Group, Inc., effective July 29, 2015 (incorporated by reference herein to Exhibit 3.2 of the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2015, File No. 001-33067). | ||
Indenture, dated as of September 24, 2002, between Selective Insurance Group, Inc. and National City Bank, as Trustee, relating to the Company's 1.6155% Senior Convertible Notes due September 24, 2032 (incorporated by reference herein to Exhibit 4.1 of the Company's Registration Statement on Form S-3 filed November 26, 2002 File No. 333-101489). | ||
Indenture, dated as of November 16, 2004, between Selective Insurance Group, Inc. and Wachovia Bank, National Association, as Trustee, relating to the Company's 7.25% Senior Notes due 2034 (incorporated by reference herein to Exhibit 4.1 of the Company's Current Report on Form 8-K filed November 18, 2004, File No. 000-08641). | ||
Indenture, dated as of November 3, 2005, between Selective Insurance Group, Inc. and Wachovia Bank, National Association, as Trustee, relating to the Company’s 6.70% Senior Notes due 2035 (incorporated by reference herein to Exhibit 4.1 of the Company’s Current Report on Form 8-K filed November 9, 2005, File No. 000-08641). | ||
Registration Rights Agreement, dated as of November 16, 2004, between Selective Insurance Group, Inc. and Keefe, Bruyette & Woods, Inc. (incorporated by reference herein to Exhibit 4.2 of the Company’s Current Report on Form 8-K filed November 18, 2004, File No. 000-08641). | ||
Registration Rights Agreement, dated as of November 3, 2005, between Selective Insurance Group, Inc. and Keefe, Bruyette & Woods, Inc. (incorporated by reference herein to Exhibit 4.2 of the Company’s Current Report on Form 8-K filed November 9, 2005, File No. 000-08641). | ||
Indenture, dated as of February 8, 2013, between Selective Insurance Group, Inc. and U.S. Bank National Association, as Trustee (incorporated by reference herein to Exhibit 4.1 of the Company's Current Report on Form 8-K filed February 8, 2013, File No. 001-33067). | ||
First Supplemental Indenture, dated as of February 8, 2013, between Selective Insurance Group, Inc. and U.S. Bank National Association, as Trustee, relating to the Company’s 5.875% Senior Notes due 2043 (incorporated by reference herein to Exhibit 4.2 of the Company’s Current Report on Form 8-K filed February 8, 2013, File No. 001-33067). | ||
Selective Insurance Supplemental Pension Plan, As Amended and Restated Effective January 1, 2005 (incorporated by reference herein to Exhibit 10.1 of the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2008, File No. 001-33067). | ||
Amendment No. 1 to Selective Insurance Supplemental Pension Plan, As Amended and Restated Effective January 1, 2005 (incorporated by reference herein to Exhibit 10.1 of the Company's Current Report on Form 8-K filed March 25, 2013, File No. 001-33067). | ||
Selective Insurance Company of America Deferred Compensation Plan (2005), As Amended and Restated Effective as of January 1, 2010 (incorporated by reference herein to Exhibit 10.2 of the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2011, File No. 001-33067). | ||
Amendment No 1. to Selective Insurance Company of America Deferred Compensation Plan (2005) (incorporated by reference herein to Exhibit 10.2a of the Company's Quarterly Report on Form 10-Q for the quarter ended September 30, 2011, File No. 001-33067). |
Exhibit | ||
Number | ||
Amendment No. 2 to Selective Insurance Company of America Deferred Compensation Plan (2005), As Amended and Restated Effective as of January 1, 2010 (incorporated by reference herein to Exhibit 10.2 of the Company's Current Report on Form 8-K filed March 25, 2013, File No. 001-33067). | ||
Selective Insurance Group, Inc. 2014 Omnibus Stock Plan, effective May 1, 2014 (incorporated by reference herein to Appendix A-1 to the Company’s Definitive Proxy Statement for its 2014 Annual Meeting of Stockholders filed April 3, 2014, File No. 001-33067). | ||
Selective Insurance Group, Inc. 2014 Omnibus Stock Plan Director Stock Option Agreement (incorporated by reference herein to Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2014, File No. 001-33067). | ||
Selective Insurance Group, Inc. 2014 Omnibus Stock Plan Stock Option Agreement (incorporated by reference herein to Exhibit 10.2 to the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2014, File No. 001-33067). | ||
Selective Insurance Group, Inc. 2014 Omnibus Stock Plan Service-Based Restricted Stock Agreement (incorporated by reference herein to Exhibit 10.3 to the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2014, File No. 001-33067). | ||
Selective Insurance Group, Inc. 2014 Omnibus Stock Plan Performance-Based Restricted Stock Agreement (incorporated by reference herein to Exhibit 10.4 to the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2014, File No. 001-33067). | ||
Selective Insurance Group, Inc. 2014 Omnibus Stock Plan Service-Based Restricted Stock Unit Agreement (incorporated by reference herein to Exhibit 10.5 to the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2014, File No. 001-33067). | ||
Selective Insurance Group, Inc. 2014 Omnibus Stock Plan Performance-Based Restricted Stock Unit Agreement (incorporated by reference herein to Exhibit 10.6 to the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2014, File No. 001-33067). | ||
Selective Insurance Group, Inc. 2014 Omnibus Stock Plan Director Restricted Stock Unit Agreement (incorporated by reference herein to Exhibit 10.7 to the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2014, File No. 001-33067). | ||
Selective Insurance Group, Inc. 2005 Omnibus Stock Plan As Amended and Restated Effective as of May 1, 2010 (incorporated by reference herein to Appendix C of the Company’s Definitive Proxy Statement for its 2010 Annual Meeting of Stockholders filed March 25, 2010, File No. 001-33067). | ||
Selective Insurance Group, Inc. 2014 Omnibus Stock Plan as Amended and Restated Effective as of May 2, 2018 (incorporated by reference herein to Appendix A of the Company’s Definitive Proxy Statement filed March 26, 2018 for its 2018 Annual Meeting of Stockholders, File No. 001-33067). | ||
Selective Insurance Group, Inc. 2005 Omnibus Stock Plan Director Stock Option Agreement (incorporated by reference herein to Exhibit 10.9 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2005, File No. 000-08641). | ||
Selective Insurance Group, Inc. 2005 Omnibus Stock Plan Automatic Director Stock Option Agreement (incorporated by reference herein to Exhibit 2 of the Company’s Definitive Proxy Statement for its 2005 Annual Meeting of Stockholders filed April 6, 2005, File No. 000-08641). | ||
Selective Insurance Group, Inc. Non-Employee Directors’ Compensation and Deferral Plan, As Amended and Restated Effective as of January 1, 2017 (incorporated by reference herein to Exhibit 10.18 to the Company's Annual Report on Form 10-K for the year ended December 31, 2016, File No. 001-33067). |
Exhibit | ||
Number | ||
10.16+ | Deferred Compensation Plan for Directors (incorporated by reference herein to Exhibit 10.5 to the Company’s Annual Report on Form 10-K for the year ended December 31, 1993, File No. 000-08641) (P). | |
Selective Insurance Group, Inc. Employee Stock Purchase Plan (2009), amended and restated effective July 1, 2009 (incorporated by reference herein to Appendix A to the Company’s Definitive Proxy Statement for its 2009 Annual Meeting of Stockholders filed March 26, 2009, File No. 001-33067). | ||
Selective Insurance Group, Inc. Cash Incentive Plan As Amended and Restated as of May 1, 2014 (incorporated by reference herein to Appendix B to the Company’s Definitive Proxy Statement for its 2014 Annual Meeting of Stockholders filed March 24, 2014, File No. 001-33067). | ||
Selective Insurance Group, Inc. Cash Incentive Plan Service-Based Cash Incentive Unit Award Agreement (incorporated by reference herein to Exhibit 10.8 of the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2014, File No. 001-33067). | ||
Selective Insurance Group, Inc. Cash Incentive Plan Performance-Based Cash Incentive Unit Award Agreement (incorporated by reference herein to Exhibit 10.9 of the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2014, File No. 001-33067). | ||
Selective Insurance Group, Inc. Cash Incentive Plan Cash Incentive Unit Award Agreement (incorporated by reference herein to Exhibit 10.14c of the Company’s Annual Report on Form 10-K for the year ended December 31, 2007, File No. 001-33067). | ||
Selective Insurance Group, Inc. Cash Incentive Plan Cash Incentive Unit Award Agreement (incorporated by reference herein to Exhibit 10.14d of the Company’s Annual Report on Form 10-K for the year ended December 31, 2007, File No. 001-33067). | ||
Amended and Restated Selective Insurance Group, Inc. Stock Purchase Plan for Independent Insurance Agencies (2010), Amended and Restated as of February 1, 2017 (incorporated by reference herein to Exhibit 10.26 to the Company's Annual Report on Form 10-K for the year ended December 31, 2016, File No. 001-33067). | ||
Selective Insurance Group, Inc. Stock Option Plan for Directors (incorporated by reference herein to Exhibit B of the Company’s Definitive Proxy Statement for its 2000 Annual Meeting of Stockholders filed March 31, 2000, File No. 000-08641). | ||
Amendment to the Selective Insurance Group, Inc. Stock Option Plan for Directors, as amended, effective as of July 26, 2006, (incorporated by reference herein to Exhibit 10.3 of the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2006, File No. 000-08641). | ||
Selective Insurance Group, Inc. Stock Compensation Plan for Nonemployee Directors, (incorporated by reference herein to Exhibit A of the Company’s Definitive Proxy Statement for its 2000 Annual Meeting of Stockholders filed March 31, 2000, File No. 000-08641). | ||
Amendment to Selective Insurance Group, Inc. Stock Compensation Plan for Nonemployee Directors, as amended (incorporated by reference herein to Exhibit 10.22a of the Company’s Annual Report on Form 10-K for the year ended December 31, 2008, File No. 001-33067). | ||
Employment Agreement between Selective Insurance Company of America and Gregory E. Murphy, dated as of December 23, 2008 (incorporated by reference herein to Exhibit 10.1 of the Company’s Current Report on Form 8-K filed December 30, 2008, File No. 001-33067). | ||
Employment Agreement between Selective Insurance Company of America and Michael H. Lanza, dated as of December 23, 2008 (incorporated by reference herein to Exhibit 10.23e of the Company’s Annual Report on Form 10-K for the year ended December 31, 2008, File No. 001-33067). | ||
Exhibit | ||
Number | ||
Employment Agreement between Selective Insurance Company of America and John J. Marchioni, dated as of September 10, 2013 (incorporated by reference herein to Exhibit 10.1 of the Company’s Current Report on Form 8-K filed September 11, 2013, File No. 001-33067). | ||
Employment Agreement between Selective Insurance Company of America and Mark A. Wilcox, dated as of October 28, 2016 (incorporated by reference herein to Exhibit 10.1 of the Company’s Current Report on Form 8-K filed October 31, 2016, File No. 001-33067). | ||
Credit Agreement among Selective Insurance Group, Inc., the Lenders Named Therein and Wells Fargo Bank, National Association, as Administrative Agent, dated as of December 1, 2015 (incorporated by reference herein to Exhibit 10.35 of the Company's Annual Report on Form 10-K for the year ended December 31, 2015, File No. 001-33067). | ||
Form of Indemnification Agreement between Selective Insurance Group, Inc. and each of its directors and executive officers, as adopted on May 19, 2005 (incorporated by reference herein to Exhibit 10.1 of the Company’s Current Report on Form 8-K filed May 20, 2005, File No. 000-08641). | ||
Selective Insurance Group, Inc. Non-Employee Directors’ Deferred Compensation Plan (incorporated by reference herein to Exhibit 10.27 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2009, File No. 001-33067). | ||
Amendment No. 1 to the Selective Insurance Group, Inc. Non-Employee Directors’ Deferred Compensation Plan (incorporated by reference herein to Exhibit 10.27a of the Company’s Annual Report on Form 10-K for the year ended December 31, 2010, File No. 001-33067). |
Exhibit | ||
Number | ||
Subsidiaries of Selective Insurance Group, Inc. | ||
Consent of KPMG LLP. | ||
Power of Attorney of Paul D. Bauer. | ||
Power of Attorney of John C. Burville. | ||
Power of Attorney of Terrence W. Cavanaugh. | ||
Power of Attorney of Robert Kelly Doherty. | ||
Power of Attorney of Thomas A. McCarthy. | ||
Power of Attorney of H. Elizabeth Mitchell. | ||
Power of Attorney of Michael J. Morrissey. | ||
Power of Attorney of Cynthia S. Nicholson. | ||
Power of Attorney of Ronald L. O'Kelley. | ||
Power of Attorney of William M. Rue. | ||
Power of Attorney of John S. Scheid. | ||
Power of Attorney of J. Brian Thebault. | ||
Power of Attorney of Philip H. Urban. | ||
Certification of Chief Executive Officer in accordance with Section 302 of the Sarbanes-Oxley Act of 2002. | ||
Certification of Chief Financial Officer in accordance with Section 302 of the Sarbanes-Oxley Act of 2002. | ||
Certification of Chief Executive Officer in accordance with Section 906 of the Sarbanes-Oxley Act of 2002. | ||
Certification of Chief Financial Officer in accordance with Section 906 of the Sarbanes-Oxley Act of 2002. | ||
Glossary of Terms. |
** 101.INS | XBRL Instance Document. | |
** 101.SCH | XBRL Taxonomy Extension Schema Document. | |
** 101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document. | |
** 101.LAB | XBRL Taxonomy Extension Label Linkbase Document. | |
** 101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document. | |
** 101.DEF | XBRL Taxonomy Extension Definition Linkbase Document. |
SELECTIVE INSURANCE GROUP, INC. | ||
By: /s/ Gregory E. Murphy | February 15, 2019 | |
Gregory E. Murphy | ||
Chairman of the Board and Chief Executive Officer | ||
(principal executive officer) | ||
By: /s/ Mark A. Wilcox | February 15, 2019 | |
Mark A. Wilcox | ||
Executive Vice President and Chief Financial Officer | ||
(principal financial officer) | ||
By: /s/ Anthony D. Harnett | February 15, 2019 | |
Anthony D. Harnett | ||
Senior Vice President and Chief Accounting Officer | ||
(principal accounting officer) |
By: /s/ Gregory E. Murphy | February 15, 2019 | |
Gregory E. Murphy | ||
Chairman of the Board and Chief Executive Officer | ||
* | February 15, 2019 | |
Paul D. Bauer | ||
Director | ||
* | February 15, 2019 | |
John C. Burville | ||
Director | ||
* | February 15, 2019 | |
Terrence W. Cavanaugh | ||
Director | ||
* | February 15, 2019 | |
Robert Kelly Doherty | ||
Director | ||
* | February 15, 2019 | |
Thomas A. McCarthy | ||
Director | ||
* | February 15, 2019 | |
H. Elizabeth Mitchell | ||
Director | ||
* | February 15, 2019 | |
Michael J. Morrissey | ||
Director | ||
* | February 15, 2019 | |
Cynthia S. Nicholson | ||
Director |
* | February 15, 2019 | |
Ronald L. O'Kelley | ||
Director | ||
* | February 15, 2019 | |
William M. Rue | ||
Director | ||
* | February 15, 2019 | |
John S. Scheid | ||
Director | ||
* | February 15, 2019 | |
J. Brian Thebault | ||
Director | ||
* | February 15, 2019 | |
Philip H. Urban | ||
Director | ||
* By: /s/ Michael H. Lanza | February 15, 2019 | |
Michael H. Lanza | ||
Attorney-in-fact |
Name | Jurisdiction in which organized | Parent | Percentage voting securities owned | ||||
Mesa Underwriters Specialty Insurance Company | New Jersey | Selective Insurance Group, Inc. | 100 | % | |||
Selective Auto Insurance Company of New Jersey | New Jersey | Selective Insurance Group, Inc. | 100 | % | |||
Selective Casualty Insurance Company | New Jersey | Selective Insurance Group, Inc. | 100 | % | |||
Selective Fire and Casualty Insurance Company | New Jersey | Selective Insurance Group, Inc. | 100 | % | |||
Selective Insurance Company of America | New Jersey | Selective Insurance Group, Inc. | 100 | % | |||
Selective Insurance Company of New England | New Jersey | Selective Insurance Group, Inc. | 100 | % | |||
Selective Insurance Company of New York | New York | Selective Insurance Group, Inc. | 100 | % | |||
Selective Insurance Company of South Carolina | Indiana | Selective Insurance Group, Inc. | 100 | % | |||
Selective Insurance Company of the Southeast | Indiana | Selective Insurance Group, Inc. | 100 | % | |||
Selective Way Insurance Company | New Jersey | Selective Insurance Group, Inc. | 100 | % | |||
SRM Insurance Brokerage, LLC. | New Jersey | Selective Way Insurance Company | 75 | % | |||
Selective Insurance Company of the Southeast | 25 | % | |||||
Wantage Avenue Holding Company, Inc. | New Jersey | Selective Insurance Group, Inc. | 100 | % |
(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 |
(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. |
Date: | February 15, 2019 | By: /s/ Gregory E. Murphy |
Gregory E. Murphy | ||
Chairman of the Board and Chief Executive Officer |
(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 |
(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. |
Date: | February 15, 2019 | By: /s/ Mark A. Wilcox |
Mark A. Wilcox | ||
Executive Vice President and Chief Financial Officer |
Date: | February 15, 2019 | By: /s/ Gregory E. Murphy |
Gregory E. Murphy | ||
Chairman of the Board and Chief Executive Officer |
Date: | February 15, 2019 | By: /s/ Mark A. Wilcox |
Mark A. Wilcox | ||
Executive Vice President and Chief Financial Officer |
Glossary of Terms | Exhibit 99.1 | |
Accident Year: accident year reporting focuses on the cost of the losses that occurred in a given year regardless of when reported. These losses are calculated by adding all payments that have been made for those losses occurring in a given calendar year (regardless of the year in which they were paid) to any current reserve that remains for losses that occurred in that given calendar year. Agent (Independent Retail Insurance Agent): a distribution partner who recommends and markets insurance to individuals and businesses; usually represents several insurance companies. Insurance companies pay agents for business production. Allocated loss adjustment expenses: defense, litigation, and medical cost containment expense, whether internal or external. Audit Premium: premiums based on data from an insured’s records, such as payroll data. Insured’s records are subject to periodic audit for purposes of verifying premium amounts. Catastrophe Loss: severe loss, as defined by the Insurance Services Office's Property Claims Service (PCS) unit, either natural or man-made, usually involving, but not limited to, many risks from one occurrence such as fire, hurricane, tornado, earthquake, windstorm, explosion, hail, severe winter weather, and terrorism. Combined Ratio: measure of underwriting profitability determined by dividing the sum of all GAAP expenses (losses, loss expenses, underwriting expenses, and dividends to policyholders) by GAAP net premiums earned for the period. A ratio over 100% is indicative of an underwriting loss, and a ratio below 100% is indicative of an underwriting profit. Contract Binding Authority: business that is written in accordance with a well-defined underwriting strategy that clearly delineates risk eligibility, rates, and coverages; generally distributed through wholesale general agents. Credit Risk: risk that a financially-obligated party will default on any type of debt by failing to make payment obligations. Examples include: (i) a bond issuer does not make a payment on a coupon or principal payment when due; or (ii) a reinsurer does not pay policy obligations. Credit Spread Risk: represents the risk premium required by market participants for a given credit quality and debt issuer. Spread is the difference between the yield on a particular debt instrument and the yield of a similar maturity U.S. Treasury debt security. Changes in credit spreads may arise from changes in economic conditions and perceived risk of default or downgrade of individual debt issuers. Customers: another term for policyholders; individuals or entities that purchase our insurance products or services. Diluted Weighted Average Shares Outstanding: represents weighted-average common shares outstanding adjusted for the impact of any dilutive common stock equivalents. Distribution Partners: insurance consultants that we partner with in selling our insurance products and services. Independent retail insurance agents are our distribution partners for standard market business and wholesale general agents are our distribution partners for E&S market business. Earned Premiums: portion of a premium that is recognized as income based on the expired portion of the policy period. Effective Duration: expressed in years, provides an approximate measure of the portfolio's price sensitivity to a change in interest rates, taking into consideration how the change in interest rates may impact the timing of expected cash flows. Frequency: likelihood that a loss will occur. Expressed as low frequency (meaning the loss event is possible but has rarely happened in the past and is not likely to occur in the future), moderate frequency (meaning the loss event has happened once in a while and can be expected to occur sometime in the future), or high frequency (meaning the loss event happens regularly and can be expected to occur regularly in the future). Generally Accepted Accounting Principles (GAAP): accounting practices used in the United States of America determined by the Financial Accounting Standards Board. Public companies use GAAP when preparing financial statements to be filed with the United States Securities and Exchange Commission. Incurred But Not Reported (IBNR) Reserves: reserves for estimated losses that have been incurred by insureds but not yet reported plus provisions for future emergence on known claims and reopened claims. Interest Rate Risk: exposure to interest rate risk relates primarily to market price and cash flow variability associated with changes in interest rates. A rise in interest rates may decrease the fair value of our existing fixed maturity investments and declines in interest rates may result in an increase in the fair value of our existing fixed maturity investments. Invested Assets per Dollar of Stockholders' Equity Ratio: measure of investment leverage calculated by dividing invested assets by stockholders' equity. | Liquidity Spread: represents the risk premium that flows to a market participant willing to provide liquidity to another market participant that is demanding it. The spread is the difference between the price a seller is willing to accept to sell the asset and the price the buyer is willing to pay for the asset. Loss Expenses: expenses incurred in the process of evaluating, defending, and paying claims. Loss and Loss Expense Reserves: amount of money an insurer expects to pay for claim obligations and related expenses resulting from losses that have occurred and are covered by insurance policies it has sold. Non-GAAP Operating Income: non-GAAP measure that is comparable to net income with the exclusion of after-tax net realized and unrealized gains and losses on investments, and the deferred tax write-off that was recognized in 2017 in relation to the tax reform. Non-GAAP operating income is used as an important financial measure by us, analysts, and investors, because the realization of investment gains and losses on sales in any given period is largely discretionary as to timing. Realized and unrealized investment gains and losses, other-than-temporary impairment charges included in earnings, and the deferred tax write-off, could distort the analysis of trends. Non-GAAP Operating Income per Diluted Share: non-GAAP measure that is comparable to net income per diluted share with the exclusion of after-tax net realized and unrealized gains and losses on investments and the deferred tax write-off that was recognized in 2017 in relation to the tax reform. Non-GAAP Operating Return on Equity: measurement of profitability that reveals the amount of non-GAAP operating income generated by dividing non-GAAP operating income by average stockholders’ equity during the period. Reinsurance: insurance company assuming all or part of a risk undertaken by another insurance company. Reinsurance spreads the risk among insurance companies to reduce the impact of losses on individual companies. Types of reinsurance include proportional, excess of loss, treaty, and facultative. Premiums Written: premiums for all policies sold during a specific accounting period. Renewal Pure Price: estimated average premium change on renewal policies (excludes all significant exposure changes). Reported claim count: amount of reported claims, including those closed without payment. Retention: measures how well an insurance company retains business by count; is expressed as a ratio of renewed over expired policies. Risk: two distinct and frequently used meanings in insurance: (i) the chance that a claim loss will occur; or (ii) an insured or the property covered by a policy. Severity: amount of damage that is, or may be, inflicted by a loss or catastrophe. Statutory Accounting Principles (SAP): accounting practices prescribed and required by the National Association of Insurance Commissioners (“NAIC”) and state insurance departments that stress evaluation of a company’s solvency. Statutory Premiums to Surplus Ratio: statutory measure of solvency risk calculated by dividing net statutory premiums written for the year by the ending statutory surplus. Statutory Surplus: amount left after an insurance company’s liabilities are subtracted from its assets. Statutory surplus is not based on GAAP, but SAP prescribed or permitted by state and foreign insurance regulators. Unallocated loss adjustment expenses: loss adjustment expenses other than allocated loss adjustment expenses. Underwriting: insurer’s process of reviewing applications submitted for insurance coverage, deciding whether to provide all or part of the coverage requested, and determining applicable premiums and terms and conditions of coverage. Underwriting Result: underwriting income or loss; represents premiums earned less insurance losses and loss expenses, underwriting expenses, and dividends to policyholders. This measure of performance is used by management and analysts to evaluate profitability of underwriting operations and is not intended to replace GAAP net income. Unearned Premiums: portion of a premium that a company has written but has yet to earn because a portion of the policy is unexpired. Wholesale General Agent: distribution partner authorized to underwrite on behalf of a surplus lines insurer through binding authority agreements. Insurance companies pay wholesale general agents for business production. |
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Document and Entity Information - USD ($) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Feb. 07, 2019 |
Jun. 30, 2018 |
|
Document and Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2018 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | SELECTIVE INSURANCE GROUP INC | ||
Entity Central Index Key | 0000230557 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $ 3,169,745,480 | ||
Entity Common Stock, Shares Outstanding | 58,966,940 | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
Entity Shell Company | false |
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Fixed income securities, held-to-maturity, fair value | $ 38,317 | $ 44,100 |
Fixed income securities, available-for-sale, amortized cost | 5,270,798 | 5,076,716 |
Equity securities, cost | 143,811 | |
Equity Securities, FV-NI, Cost | 138,114 | |
Premiums receivable, allowance for uncollectible accounts | 9,400 | 10,000 |
Reinsurance recoverable, allowance for uncollectible accounts | 4,500 | 4,600 |
Property and equipment, accumulated depreciation and amortization | $ 211,657 | $ 213,227 |
Preferred stock, par value per share | $ 0 | $ 0 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value per share | $ 2 | $ 2 |
Common stock, shares authorized | 360,000,000 | 360,000,000 |
Common stock, shares issued | 102,848,394 | 102,284,564 |
Treasury stock, shares | 43,899,840 | 43,789,442 |
Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Dividend reinvestment plan, shares | 23,493 | 28,607 | 38,741 |
Stock purchase and compensation plans, shares | 540,337 | 635,521 | 720,323 |
Dividends to stockholders, per share | $ 0.74 | $ 0.66 | $ 0.61 |
Acquisition of treasury stock, shares | 110,398 | 136,205 | 152,595 |
Preferred stock, par value per share | $ 0 | $ 0 | $ 0 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 | 0 |
Series A Preferred Stock [Member] | |||
Preferred stock, par value per share | $ 0 | $ 0 | $ 0 |
Preferred stock, shares authorized | 300,000 | 300,000 | 300,000 |
Consolidated Statements of Cash Flows - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Operating Activities | |||
Net income | $ 178,939 | $ 168,826 | $ 158,495 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 44,874 | 52,100 | 61,671 |
Stock-based compensation expense | 14,507 | 12,089 | 10,449 |
Undistributed (gains) losses of equity method investments | (8,341) | (5,362) | 318 |
Distributions in excess of current year income of equity method investments | 2,924 | 552 | 0 |
Net realized and unrealized losses (gains) | 54,923 | (6,359) | 4,937 |
Loss on disposal of fixed assets | 63 | 998 | 0 |
Changes in assets and liabilities: | |||
Increase in reserves for loss and loss expense, net of reinsurance recoverables | 168,288 | 106,226 | 114,422 |
Increase in unearned premiums, net of prepaid reinsurance | 78,058 | 79,614 | 87,716 |
Decrease in net federal income taxes | 2,428 | 30,918 | 11,150 |
Increase in premiums receivable | (23,489) | (65,418) | (66,447) |
Increase in deferred policy acquisition costs | (17,557) | (12,491) | (9,405) |
Increase in interest and dividends due or accrued | (540) | (1,088) | (1,473) |
Decrease in accrued salaries and benefits | (26,418) | (5,714) | (46,536) |
Increase in other assets | (372) | (2,643) | (4,979) |
(Decrease) increase in other liabilities | (13,343) | 27,297 | 9,191 |
Net cash provided by operating activities | 454,944 | 379,545 | 329,509 |
Investing Activities | |||
Purchase of fixed income securities, held-to-maturity | (7,150) | 0 | (4,235) |
Purchase of fixed income securities, available-for-sale | (2,918,203) | (2,130,362) | (1,982,023) |
Purchase of equity securities, available-for-sale | (61,931) | (35,490) | |
Purchase of equity securities | (94,344) | ||
Purchase of other investments | (68,578) | (55,830) | (66,164) |
Purchase of short-term investments | (4,259,734) | (4,280,553) | (3,499,380) |
Sale of fixed income securities, available-for-sale | 2,030,664 | 1,197,920 | 926,470 |
Sale of short-term investments | 4,101,530 | 4,338,318 | 3,470,022 |
Redemption and maturities of fixed income securities, held-to-maturity | 12,106 | 58,832 | 102,868 |
Redemption and maturities of fixed income securities, available-for-sale | 638,916 | 555,216 | 641,524 |
Sale of equity securities, available-for-sale | 37,960 | 119,617 | |
Sale of equity securities | 113,339 | ||
Sale of other investments | 3,497 | 0 | 0 |
Distributions from other investments | 28,379 | 21,843 | 24,202 |
Purchase of property and equipment | (16,110) | (14,071) | (18,147) |
Net cash used in investing activities | (435,688) | (332,658) | (320,736) |
Financing Activities | |||
Dividends to stockholders | (42,097) | (37,045) | (33,758) |
Acquisition of treasury stock | (6,556) | (6,015) | (4,992) |
Net proceeds from stock purchase and compensation plans | 7,252 | 7,599 | 7,811 |
Proceeds from borrowings | 130,000 | 84,000 | 165,000 |
Repayment of borrowings | (130,000) | (84,000) | (115,000) |
Excess tax benefits from share-based payment arrangements | 0 | 0 | 1,819 |
Repayment of capital lease obligations | (5,646) | (4,121) | (5,002) |
Net cash (used in) provided by financing activities | (47,047) | (39,582) | 15,878 |
Net (decrease) increase in cash and restricted cash | (27,791) | 7,305 | 24,651 |
Cash and restricted cash, beginning of year | 44,710 | 37,405 | 12,754 |
Cash and restricted cash, end of year | $ 16,919 | $ 44,710 | $ 37,405 |
Organization |
12 Months Ended | ||||||||||||||||
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Dec. 31, 2018 | |||||||||||||||||
Organization [Abstract] | |||||||||||||||||
Organization | Organization Selective Insurance Group, Inc., through its subsidiaries, (collectively referred to as “we,” “us,” or “our”) offers standard commercial, standard personal, and excess and surplus ("E&S") lines property and casualty insurance products. Selective Insurance Group, Inc. (referred to as the “Parent”) was incorporated in New Jersey in 1977 and its corporate headquarters is located in Branchville, New Jersey. The Parent’s common stock is publicly traded on the NASDAQ Global Select Market under the symbol “SIGI.” We have provided a glossary of terms as Exhibit 99.1 to this Form 10-K, which defines certain industry-specific and other terms that are used in this Form 10-K. We classify our business into four reportable segments, which are as follows:
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Summary of Significant Accounting Policies |
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Accounting Policies [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Signifcant Accounting Policies | Summary of Significant Accounting Policies (a) Principles of Consolidation The accompanying consolidated financial statements (“Financial Statements”) include the accounts of the Parent and its subsidiaries, and have been prepared in conformity with: (i) U.S. generally accepted accounting principles ("GAAP"); and (ii) the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). All significant intercompany accounts and transactions are eliminated in consolidation. (b) Use of Estimates The preparation of our Financial Statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported financial statement balances, as well as the disclosure of contingent assets and liabilities. Actual results could differ from those estimates. (c) Reclassifications Certain amounts in our prior years' Financial Statements and related notes have been reclassified to conform to the 2018 presentation. Specifically, we reclassified restricted cash balances related to our participation in the National Flood Insurance Program ("NFIP") from other assets in our consolidated balance sheet into a separate line item on the face of that statement. Additionally, refer to Note 3. "Adoption of Accounting Pronouncements" below for a discussion of the retroactive restatements that are included in these financial statements in relation to the adoption of new accounting pronouncements for the treatment of restricted cash and distributions from equity method investments on the Consolidated Statements of Cash Flows. (d) Investments Portfolio Composition and Presentation in the Consolidated Balance Sheets Our investment portfolio is primarily comprised of fixed income securities, which represent approximately 89% of our invested assets. We also hold equity securities, short-term investments, and other investments. A description of our portfolio holdings, and the related presentation in our Consolidated Balance Sheets, is provided below. Fixed Income Portfolio We hold the following types of securities in our fixed income securities portfolio:
We have designated approximately 99% of our fixed income securities portfolio as available-for-sale ("AFS"), with the remaining 1% being designated as held-to-maturity ("HTM"), as we have the ability and positive intent to hold these securities to maturity. Our AFS securities are reported at fair value in our consolidated balance sheets, with unrealized gains or losses recognized in accumulated other comprehensive income (loss) ("AOCI"), net of tax. HTM securities are carried at either: (i) amortized cost; or (ii) market value at the date of transfer into the HTM category, adjusted for subsequent amortization. After-tax unrealized gains and losses on securities that were transferred into an HTM designation from an AFS designation, are also included in AOCI. The amortized cost of fixed income securities is adjusted for the amortization of premiums and the accretion of discounts over the expected life of the security using the effective yield method. Callable debt securities held at a premium are amortized to the earliest call date. Premiums and discounts arising from the purchase of RMBS, CMBS, CLOs and other ABS are amortized over the expected life of the security based on future principal payments, giving additional consideration to prepayments. These prepayments are estimated based on historical and projected cash flows. Prepayment assumptions are reviewed quarterly and adjusted to reflect actual prepayments and changes in expectations. Future amortization of any premium and/or discount is adjusted to reflect the revised assumptions. Other Portfolio Holdings Equity securities may include common and non-redeemable preferred stocks. Equity securities with readily determinable fair values are carried at fair value. Certain equity securities without readily determinable fair values are carried at net asset value ("NAV") as a practical expedient. Short-term investments may include certain money market instruments, savings accounts, commercial paper, and debt issues purchased with a maturity of less than one year. We also enter into reverse repurchase agreements that are included in short-term investments. These loans are fully collateralized with high quality, readily marketable instruments at a minimum of 102% of the loan principal. At maturity, we receive principal and interest income on these agreements. All short-term investments are carried at cost, which approximates fair value. Other investments may include alternative investments and other securities. Alternative investments are accounted for using the equity method, with income typically recognized on a one-quarter lag. Other securities are primarily comprised of tax credit investments and equity securities without readily determinable fair values that are not carried at NAV as a practical expedient. These equity securities are carried at cost. Accounting for our tax credit investments is dependent on the type of credit we have purchased, as follows:
For federal tax credits accounted for under the equity method, we use the deferral method for recognizing the benefit of the tax credit with the related deferred revenue being recognized in our Consolidated Income Statement as a component of "Federal income tax expense" proportionately over the life of the investment. We evaluate the alternative investments and tax credit investments included in our other investments portfolio to determine whether those investments are variable interest entities ("VIEs") and if so, whether consolidation is required. A VIE is an entity that either has equity investors that lack certain essential characteristics of a controlling financial interest or lack sufficient funds to finance its own activities without financial support provided by other entities. We consider several significant factors in determining if our investments are VIEs and if we are the primary beneficiary, including whether we have: (i) the power to direct activities of the VIE; (ii) the ability to remove the decision maker of the VIE; (iii) the ability to participate in making decisions that are significant to the VIE; and (iv) the obligation to absorb losses and the right to receive benefits that could potentially be significant to the VIE. We have reviewed our alternative and tax credit investments and have concluded that they are VIEs, but that we are not the primary beneficiary and therefore, consolidation is not required. Presentation in the Consolidated Statements of Income Net investment income earned on our Consolidated Statements of Income include the following:
Income related to federal tax credits (either low income housing tax credits or other federal credits) is recorded in our Consolidated Statements of Income as a component of “Federal income tax expense” proportionately over the life of the investment. Net realized and unrealized gains and losses on our Consolidated Statements of Income include the following:
On a quarterly basis, we review our investment portfolio for impairments that are other than temporary. The following provides information on this analysis for our fixed income securities and short-term investments, and our other investments. OTTI Charges on Fixed Income Securities and Short-Term Investments We review our fixed income securities and short-term investments that are in an unrealized loss position to determine: (i) if we have the intent to sell the security; (ii) if it is more likely than not that we will be required to sell the security before its anticipated recovery; (iii) if the decline is other than interest-rate related; and (iv) if the decline is other than temporary. Broad changes in the overall market or interest rate environment generally will not lead to a write down. If we determine that we have either the intent or requirement to sell the security, we write down its amortized cost to its fair value through an OTTI charge to earnings. If we do not have either the intent or requirement to sell the security, our evaluation for OTTI may include, but is not limited to, evaluation of the following factors:
To determine if an impairment is other than temporary, we perform assessments that may include, but are not limited to, a discounted cash flow analysis ("DCF") to determine the security's present value of future cash flows. This analysis is also performed on all previously-impaired debt securities that continue to be held by us and all RMBS, CMBS, CLOs and ABS that were not of high credit quality at the date of purchase. Any shortfall in the expected present value of the future cash flows, based on the DCF, from the amortized cost basis of a security is considered a “credit impairment,” with the remaining decline in fair value of a security considered a “non-credit impairment.” Credit impairments are charged to earnings as a component of realized losses, while non-credit impairments are recorded to other comprehensive income ("OCI") as a component of unrealized losses. The discount rate we use in a DCF is the effective interest rate implicit in the security at the date of acquisition for those RMBS, CMBS, CLOs and other ABS that were not of high credit quality at acquisition. For all other securities, we use a discount rate that equals the current yield, excluding the impact of previous OTTI charges, used to accrete the beneficial interest. DCFs may include, but are not necessarily limited to: (i) generating cash flows for each tranche considering tranche-specific data, market data, and other pertinent information, such as the historical performance of the underlying collateral, including net operating income generated by underlying properties, conditional default rate assumptions, loan loss severity assumptions, consensus projections, prepayment projections, and actual pool and collateral information; (ii) identifying applicable benchmark yields; and (iii) applying market-based tranche specific spreads to determine an appropriate yield by incorporating collateral performance, tranche-level attributes, trades, bids, and offers. Non-redeemable preferred stocks that are classified as fixed income securities are evaluated using the OTTI method described above unless the security is below investment grade. In this situation, we would determine: (i) if we do not intend to hold the security to its forecasted recovery; or (ii) if the decline is other than temporary, which includes declines driven by market volatility for which we cannot assert recovery in the near term. If we determine either that we do not intend to hold the security, or the decline is other than temporary, we write down the security's cost to its fair value through an OTTI charge to earnings. OTTI Charges on Other Investments Our evaluation for OTTI of an alternative investment may include, but is not limited to, conversations with the management of the alternative investment concerning the following:
Our evaluation for OTTI of our other investments (tax credits and equity securities without a readily determinable fair value for which NAV is not used as a practical expedient) include a qualitative assessment of impairment indicators, which include, but are not limited to, the following:
If there is a decline in the fair value of an alternative or other investment that we do not intend to hold, or if we determine the decline is other than temporary, we write down the carry value of the investment through an OTTI charge to earnings. (e) Fair Values of Financial Instruments Assets The fair values of our investments are generated using various valuation techniques and are placed into the fair value hierarchy considering the following: (i) the highest priority is given to quoted prices in active markets for identical assets (Level 1); (ii) the next highest priority is given to quoted prices in markets that are not active or inputs that are observable either directly or indirectly, including quoted prices for similar assets in markets that are not active and other inputs that can be derived principally from, or corroborated by, observable market data for substantially the full term of the assets (Level 2); and (iii) the lowest priority is given to unobservable inputs supported by little or no market activity and that reflect our assumptions about the exit price, including assumptions that market participants would use in pricing the asset (Level 3). An asset’s classification within the fair value hierarchy is based on the lowest level of significant input to its valuation. Transfers between levels in the fair value hierarchy are recognized at the end of the reporting period. The techniques used to value our financial assets are as follows: Level 1 Pricing
Level 2 Pricing We utilize a market approach for our Level 2 securities, using primarily matrix pricing models prepared by external pricing services. Matrix pricing models use mathematical techniques to value debt securities by relying on the securities' relationship to other benchmark quoted securities, and not relying exclusively on quoted prices for specific securities, as the specific securities are not always frequently traded. As a matter of policy, we consistently use one pricing service as our primary source and secondary pricing services if prices are not available from the primary pricing service. Fixed income securities portfolio pricing is reviewed for reasonableness in the following ways: (i) comparing our pricing to other third-party pricing services as well as benchmark indexed pricing; (ii) comparing fair value fluctuations between months for reasonableness; and (iii) reviewing stale prices. If further analysis is needed, a challenge is sent to the pricing service for review and confirmation of the price. Further information on our Level 2 asset pricing is included in the following table:
Level 3 Pricing Less than 1% of our portfolio cannot be priced using our primary or secondary pricing service. At times, we may use valuations performed by the issuer or non-binding broker quotes to determine the fair value of these securities. We internally review these fair value measurements for reasonableness. This review typically includes an analysis of price fluctuations between months with variances over established thresholds being analyzed further. Liabilities The techniques used to value our notes payable are as follows: Level 1 Pricing
Level 2 Pricing
(f) Allowance for Uncollectible Accounts We estimate an allowance for uncollectible accounts on our premiums receivable. This allowance is based on historical write-off percentages adjusted for the effects of current and anticipated trends. An account is charged off when we believe it is probable that we will not collect a receivable. In making this determination, we consider information obtained from our efforts to collect amounts due directly or through collection agencies. (g) Share-Based Compensation Share-based compensation consists of all share-based payment transactions in which an entity acquires goods or services by issuing (or offering to issue) its shares, share units, share options, or other equity instruments. The cost resulting from all share-based payment transactions are recognized in the Financial Statements based on the fair value of both equity and liability awards. The fair value is measured at grant date for equity awards, whereas the fair value for liability awards are remeasured at each reporting period. The fair value of both equity and liability awards is recognized over the requisite service period. The requisite service period is typically the lesser of the vesting period or the period of time from the grant date to the date of retirement eligibility. The expense recognized for share-based awards, which, in some cases, contain performance criteria, is based on the number of shares or units expected to be issued at the end of the performance period. We repurchase the Parent’s stock from our employees in connection with tax withholding obligations, as permitted under our stock-based compensation plans. This activity is disclosed in our Consolidated Statements of Stockholders' Equity. (h) Reinsurance Reinsurance recoverable represents estimates of amounts that will be recovered from reinsurers under our various treaties. Generally, amounts recoverable from reinsurers are recognized as assets at the same time and in a manner consistent with the paid and unpaid losses associated with the reinsured policies. We require collateral to secure reinsurance recoverables primarily from our reinsurance carriers that are not authorized, otherwise approved, or certified to do business in one or more of our ten insurance subsidiaries' domiciliary states. Our ten insurance subsidiaries are collectively referred to as the "Insurance Subsidiaries." This collateral is typically in the form of a letter of credit or cash. An allowance for estimated uncollectible reinsurance is recorded based on an evaluation of balances due from reinsurers and other available information, such as each reinsurer's credit rating from A.M. Best Company ("A.M. Best") or Standard & Poor's Rating Services ("S&P"). We charge off reinsurance recoverables on paid losses when it becomes probable that we will not collect the balance. (i) Property and Equipment Property and equipment used in operations, including certain costs incurred to develop or obtain computer software for internal use, are capitalized and carried at cost less accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets. The following estimated useful lives can be considered as general guidelines:
We recorded depreciation expense of $19.5 million, $17.8 million, and $17.4 million for 2018, 2017, and 2016, respectively. (j) Deferred Policy Acquisition Costs Deferred policy acquisition costs are limited to costs directly related to the successful acquisition of insurance contracts. Costs meeting this definition typically include, among other things, sales commissions paid to our distribution partners, premium taxes, and the portion of employee salaries and benefits directly related to time spent on acquired contracts. These costs are deferred and amortized over the life of the contracts. Accounting guidance requires a premium deficiency analysis to be performed at the level an entity acquires, services, and measures the profitability of its insurance contracts. We currently perform three premium deficiency analyses for our insurance operations, consistent with our reportable segments of Standard Commercial Lines, Standard Personal Lines, and E&S Lines. A combined ratio of over 100% does not necessarily indicate a premium deficiency, as any year's combined ratio includes a portion of underwriting expenses that are expensed at policy inception and therefore are not covered by the remaining unearned premium. In addition, investment income is not contemplated in the combined ratio calculation. There were no premium deficiencies for any of the reported years, as the sum of the anticipated loss and loss expense, unamortized acquisition costs, policyholder dividends, and other expenses for each segment did not exceed that segment’s related unearned premium and anticipated investment income. The investment yields assumed in the premium deficiency assessment for each reporting period, which were based on our actual average investment yield before tax as of the September 30 calculation date, were 3.3% for 2018, 2.9% for 2017, and 2.4% for 2016. (k) Goodwill Goodwill results from business acquisitions where the cost of assets and liabilities acquired exceeds the fair value of those assets and liabilities. A quantitative goodwill impairment analysis is performed if our quarterly qualitative analysis indicates that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. Goodwill is allocated to the reporting units for purposes of these analyses. Based on our analysis at December 31, 2018, goodwill was not impaired. (l) Reserve for Loss and Loss Expense Reserves for loss and loss expense are comprised of both case reserves on individual claims and reserves for claims incurred but not reported ("IBNR"). Case reserves result from claims that have been reported to one or more of our Insurance Subsidiaries, and are estimated at the amount of the expected ultimate payment. IBNR reserves are established at more aggregated levels than case basis reserves, and include: (i) reserves on IBNR claims; and (ii) provisions for future emergence on known or reopened claims. IBNR reserves are established based on the results of the Insurance Subsidiaries’ internal reserve analysis, supplemented with other internal and external information. The internal reserve analysis is performed quarterly, and relies upon generally accepted actuarial techniques. Such techniques assume that past experience, adjusted for the effects of current developments and anticipated trends, are an appropriate basis for predicting future events. Our analyses rely upon historical paid and case loss and loss expense experience organized by line of business, accident year, and maturity (i.e., “triangles”). Standard actuarial projection methods are applied to this history, producing a set of estimated ultimate loss and loss expenses. Ultimate loss and loss expenses are selected from the various methods, considering the strengths and weaknesses of the methods as they apply to the specific line and accident year. Certain types of exposures do not lend themselves to standard actuarial methods. Examples of these are:
The selected ultimate loss and loss expenses are translated into indicated IBNR reserves, which are then compared to the recorded IBNR reserves. Management's judgment is applied in determining any required adjustments to IBNR and the resulting adjustments are then recorded and assigned or allocated to accident year using the results of the actuarial analysis. While the reserve analysis is the primary basis for determining the recorded IBNR reserves, other internal and external factors are considered. Internal factors include: (i) supplemental data regarding claims reporting and settlement trends; (ii) exposure estimates for reported claims, along with recent development on those estimates with respect to individual large claims and the aggregate of all claims; (iii) the rate at which new large or complex claims are being reported; and (iv) additional trends observed by claims personnel or reported to them by defense counsel. External factors considered include: (i) legislative enactments; (ii) judicial decisions; (iii) legal developments in the determination of liability and the imposition of damages; (iv) social inflation and heightened awareness of sources of liability; and (v) trends in general economic conditions, including the effects of inflation. Loss reserves are estimates, and as such, we also consider a range of possible loss and loss expense reserve estimates. This range is determined at the beginning of each year, using prior year-end data, and reflects the fact that there is no single precise method for estimating the required reserves, due to the many factors that may influence the amounts ultimately paid. Considering the reserve range along with all of the items described above, as well as current market conditions, IBNR estimates are then established and recorded. The combination of the IBNR estimates along with the case reserve estimates on individual claims results in our total reserves for loss and loss expense. These reserves are expected to be sufficient for settling loss and loss expense obligations under our policies on unpaid claims, including changes in the volume of business written, claims frequency and severity, the mix of business, claims processing, and other items that management expects to affect our ultimate settlement of loss and loss expense. However, the ultimate claim settlements may be higher or lower than reserves established. As our experience emerges and other information develops, we revise our reserve estimates accordingly. The changes in these estimates, resulting from the continuous review process and the differences between estimates and ultimate payments, are reflected in the Consolidated Statements of Income for the period in which such estimates are changed. The associated impacts may be material to the results of operations in future periods. We do not discount to present value that portion of our loss and loss expense reserves expected to be paid in future periods. Our loss and loss expense reserves implicitly include anticipated recoveries for salvage and subrogation claims. Claims are counted at the occurrence, line of business, and policy level. For example, if a single occurrence (e.g. an auto accident) leads to a claim under an auto and an associated umbrella policy, they are each counted separately. Conversely, multiple claimants under the same occurrence/line/policy would contribute only a single count. The claim counts provided are on a reported basis. A claim is considered reported when a reserve is established or a payment is made. Therefore, claims closed without payment are included in the count as long as there was an associated case reserve at some point in its life cycle. We also write a small amount of assumed reinsurance. Currently, this business is limited to our share of certain involuntary pools. As the associated claims are not processed by us, they are not captured within our claims system. Therefore, the claim counts reported exclude this business. (m) Revenue Recognition The Insurance Subsidiaries' net premiums written (“NPW”) include direct insurance policy writings, plus reinsurance assumed and estimates of premiums earned but unbilled on the workers compensation and general liability lines of business, less reinsurance ceded. The estimated premium on the workers compensation and general liability lines is referred to as audit premium. We estimate this premium, as it is anticipated to be either billed or returned on policies subsequent to expiration based on exposure levels (i.e. payroll or sales). Audit premium is based on historical trends adjusted for the uncertainty of future economic conditions. Economic instability could ultimately impact our estimates and assumptions, and changes in our estimate may be material to the results of operations in future periods. Premiums written are recognized as revenue over the period that coverage is provided using the semi-monthly pro-rata method. Unearned premiums and prepaid reinsurance premiums represent that portion of premiums written that are applicable to the unexpired terms of policies in force. (n) Dividends to Policyholders We establish reserves for dividends to policyholders on certain policies, most significantly workers compensation policies. These dividends are based on the policyholders' loss experience. Dividend reserves are established based on past experience, adjusted for the effects of current developments and anticipated trends. The expense for these dividends is recognized over a period that begins at policy inception and ends with the payment of the dividend. We report these dividends within "Other insurance expenses" on the Consolidated Statements of Income. We do not issue policies that entitle the policyholder to participate in the earnings or surplus of our Insurance Subsidiaries. (o) Federal Income Tax We use the asset and liability method of accounting for income taxes. Current federal income taxes are recognized for the estimated taxes payable or refundable on tax returns for the current year. Deferred federal income taxes arise from the recognition of temporary differences between financial statement carrying amounts and the tax basis of assets and liabilities. We consider all evidence, both positive and negative, with respect to our federal tax loss carryback availability, expected levels of pre-tax financial statement income, and federal taxable income, when evaluating whether the temporary differences will be realized. In projecting future taxable income, we begin with budgeted pre-tax income adjusted for estimated non-taxable items. The assumptions about future taxable income require significant judgment and are consistent with the plans and estimates we use to manage our businesses. A valuation allowance is established when it is more likely than not that some portion of the deferred tax asset will not be realized. A liability for uncertain tax positions is recorded when it is more likely than not that a tax position will not be sustained upon examination by taxing authorities. The effect of a change in tax rates is recognized in the period of enactment. If we were to be levied interest and penalties by the Internal Revenue Service (“IRS”), the interest would be recognized as “Interest expense” and the penalties would be recognized as either “Other insurance expenses” or "Corporate expenses" on the Consolidated Statements of Income depending on the nature of what caused the occurrence of such an item. (p) Leases We have various operating leases for office space, equipment, and fleet vehicles. Rental expense for such leases is recorded on a straight-line basis over the lease term. If a lease has a fixed and determinable escalation clause, or periods of rent holidays, the difference between rental expense and rent paid is included in "Other liabilities" in the Consolidated Balance Sheets. In addition, we have various capital leases for computer hardware and software. These leases are accounted for as an acquisition of an asset with a corresponding obligation. Depreciation is calculated using the straight-line method over the shorter of the estimated useful life of the asset or the lease term. (q) Pension Our pension and post-retirement life benefit obligations and related costs are calculated using actuarial methods, within the framework of GAAP. Our pension benefit obligation is determined as the actuarial present value of the vested benefits to which the employee is currently entitled, based on the average life expectancy of the employee. Our funding policy provides that payments to our pension trust shall be equal to the minimum funding requirements of the Employee Retirement Income Security Act of 1974 ("ERISA"), plus additional amounts that the Board of Directors of Selective Insurance Company of America (“SICA”) may approve from time to time. Two key assumptions, the discount rate and the expected return on plan assets, are important elements of expense and/or liability measurement. We evaluate these key assumptions annually unless facts indicate that a more frequent review is required. The discount rate enables us to state expected future cash flows at their present value on the measurement date. The purpose of the discount rate is to determine the interest rates inherent in the price at which pension benefits could be effectively settled. Our discount rate selection is based on high-quality, long-term corporate bonds. To determine the expected long-term rate of return on the plan assets, we consider the current and expected asset allocation, as well as historical and expected returns on each plan asset class. Other assumptions involve demographic factors such as retirement age and mortality. |
Adoption of Accounting Pronouncements |
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New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Pronouncements | Adoption of Accounting Pronouncements In January 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-01, Financial Instruments - Overall: Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-01”). ASU 2016-01 provides guidance to improve certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. Specifically the guidance: (i) requires equity securities held in our investment portfolio to be measured at fair value with changes in fair value recognized in earnings; (ii) simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment; (iii) eliminates the requirement to disclose the methods and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost; (iv) requires the use of the exit price notion when measuring the fair value of financial instruments for disclosure purposes; and (v) clarifies that the need for a valuation allowance on a deferred tax asset related to an available-for-sale ("AFS") security should be evaluated with other deferred tax assets. We adopted ASU 2016-01 in the first quarter of 2018 and recognized a $30.7 million cumulative-effect adjustment to the opening balances of accumulated other comprehensive income ("AOCI") and retained earnings, which represents the after-tax net unrealized gain on our equity portfolio as of December 31, 2017. Additionally, beginning in the first quarter of 2018, changes in unrealized gains or losses on this portfolio are no longer recorded to AOCI, but are instead recognized in income through "Net unrealized losses on equity securities" on our Consolidated Statements of Income. See Note 5. "Investments" below for information regarding unrealized equity losses recognized in income for 2018. There were two accounting updates that we adopted with a retrospective transition in the first quarter of 2018 that related to our statements of cash flows. These accounting updates impacted our categorization of distributions from equity method investees (ASU 2016-15, Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments ("ASU 2016-15")) and the presentation of restricted cash (ASU 2016-18, Statement of Cash Flows: Restricted Cash ("ASU 2016-18")). These ASUs are discussed below and the discussions are followed with a table presenting the impact of the prior period restatements. In August 2016, the FASB issued ASU 2016-15. As mentioned above, this ASU adds guidance on the categorization of distributions from equity method investees within the statement of cash flows. In accordance with this guidance, we made an accounting policy election to classify these distributions using the cumulative earnings approach. This election resulted in a restatement to operating and investing cash flows as outlined in the table below. ASU 2016-15 also added or clarified guidance on the cash flow classification of certain cash receipts and payments, including, but not limited to: (i) debt prepayment or debt extinguishment costs; (ii) proceeds from the settlement of corporate-owned life insurance policies, including bank-owned life insurance policies; and (iii) separately identifiable cash flows and application of the predominance principle. The updated guidance for these topics did not result in any restatements to our statement of cash flows. In November 2016, the FASB issued ASU 2016-18. ASU 2016-18 requires restricted cash and restricted cash equivalents to be included with cash and cash equivalents in the reconciliation of beginning and ending cash on the statements of cash flows. This update also requires a reconciliation of the statement of the cash flows to the balance sheet if the balance sheet includes more than one line item containing cash, cash equivalents, and restricted cash. We have restricted cash related to our participation in the NFIP, which we had previously reported as part of "Other assets" on the Consolidated Balance Sheets. Beginning in the first quarter of 2018, we are reporting restricted cash in its own line item on the Consolidated Balance Sheets to aid in the reconciliation of the amounts presented on the Consolidated Statements of Cash Flows. We have also restated prior year balances on the Consolidated Balance Sheets to conform to the current year presentation. The adoption of this guidance resulted in a restatement of operating cash flows in 2017 and 2016 to remove the impact of the change in restricted cash from operating activities and include the restricted cash balance in the reconciliation of beginning and ending cash balances on the Statements of Cash Flows. In addition, we have included the required reconciliation in Note 4. "Statements of Cash Flows" below. ASU 2016-15 and ASU 2016-18 resulted in the following line item restatements within operating and investing cash flows on the Statements of Cash Flows:
In January 2017, the FASB issued ASU 2017-04, Intangibles-Goodwill and Other: Simplifying the Test for Goodwill Impairment (“ASU 2017-04”). ASU 2017-04 eliminates the second step of the two part goodwill impairment test, which required entities to determine the fair value of individual assets and liabilities of a reporting unit to measure the goodwill impairment. Under the new guidance, a goodwill impairment is calculated as the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. The amendments in this update are to be applied on a prospective basis for annual or interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. We adopted ASU 2017-04 in the first quarter of 2018 and it had no impact on us. In March 2017, the FASB issued ASU 2017-07, Compensation-Retirement Benefits: Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost ("ASU 2017-07"). ASU 2017-07 requires that an employer report a pension plan's service cost in the same line item or line items as other compensation costs arising from services rendered by pertinent employees during the period. ASU 2017-07 also requires that other components of net benefit cost be presented in the income statement separately from the service cost component. If a separate line item or items are not used, the line item or items used in the income statement to present the other components of net benefit cost must be disclosed. ASU 2017-07 was effective for annual periods beginning after December 15, 2017, including interim periods within those annual periods, with early adoption permitted at the beginning of an annual period. We adopted ASU 2017-07 in the first quarter of 2018, but it had no impact on us as our pension plan was frozen as of March 2016 and we have therefore ceased accruing additional service fee costs since that time. In February 2018, the FASB issued ASU 2018-02, Income Statement - Reporting Comprehensive Income ("ASU 2018-02"). ASU 2018-02 allows a one-time reclassification from AOCI to retained earnings for the stranded tax assets that were created in AOCI from the enactment of the Tax Cuts and Jobs Act of 2017 ("Tax Reform"). We adopted ASU 2018-02 in the first quarter of 2018 and recognized a $5.7 million cumulative-effect adjustment for the deferred tax charge to income in the fourth quarter of 2017 that was associated with net unrealized gains on our investment portfolio and pension plan resulting from the enactment of Tax Reform. Pronouncements to be effective in the future The FASB has issued new leasing guidance through ASU 2016-02, Leases, which was issued in February 2016, as well as additional implementation guidance that was issued in 2018 (collectively referred to as "ASU 2016-02"). ASU 2016-02 requires all lessees to recognize assets and liabilities on their balance sheets for the rights and obligations created by leases with terms longer than 12 months. For leases with a term of 12 months or less, an accounting policy election is allowed to recognize lease expense on a straight-line basis over the lease term. Under the new lease guidance, we expect an increase in assets and liabilities as we will recognize operating leases for office space, fleet vehicles, and equipment on our Consolidated Balance Sheets for the first time. ASU 2016-02 allows for certain practical expedients, accounting policy elections, and a transition method election. We currently plan to adopt practical expedients related to reassessing: (i) whether our existing contracts are, or contain, leases; (ii) lease classification for existing leases; and (iii) initial direct costs for existing leases. Additionally, we plan to adopt accounting policy elections to: (i) aggregate lease and non-lease components of a contract into a single lease component; and (ii) expense short-term leases on a straight-line basis over the lease term. We will be adopting ASU 2016-02 effective January 1, 2019 with a cumulative-effect adjustment to the opening balance of retained earnings as of that date. We do not anticipate the impact of this guidance to be material to our financial condition or results of operations, as operating lease right-of-use assets are expected to be approximately $21 million at transition with related lease liabilities of approximately $20 million. The differential of $1 million will be recognized, on an after-tax basis, as a cumulative-effect adjustment to the opening balance of 2019 retained earnings. Financing lease right-of-use assets and the related lease liabilities are expected to be approximately $1 million as of January 1, 2019. In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (“ASU 2016-13”). ASU 2016-13 will change the way entities recognize impairment of financial assets by requiring immediate recognition of estimated credit losses expected to occur over the remaining life of many financial assets, including, among others, HTM debt securities, trade receivables, and reinsurance recoverables. This ASU will not impact the impairment accounting model for AFS debt securities. ASU 2016-13 requires a valuation allowance to be calculated on these financial assets and that they be presented on the financial statements net of the valuation allowance. The valuation allowance is a measurement of expected losses that is based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. This methodology is referred to as the current expected credit loss model. ASU 2016-13 is effective for fiscal years beginning after December 15, 2019, including interim periods within those annual periods. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2018. We are currently evaluating the impact of this guidance on our financial condition and results of operations. In June 2018, the FASB issued ASU 2018-07, Compensation - Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting ("ASU 2018-07"). The amendments in ASU 2018-07 expand the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from non-employees. ASU 2018-07 is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption is permitted. The adoption of this guidance will not have a material impact on our financial condition or results of operations. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement: Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement (“ASU 2018-13”). ASU 2018-13 modifies the disclosure requirements for fair value measurements. The modifications removed the following disclosure requirements: (i) the amount of, and reasons for, transfers between Level 1 and Level 2 of the fair value hierarchy; (ii) the policy for timing of transfers between levels; and (iii) the valuation processes for Level 3 fair value measurements. This ASU added the following disclosure requirements: (i) the changes in unrealized gains and losses for the period included in other comprehensive income ("OCI") for recurring Level 3 fair value measurements held at the end of the reporting period; and (ii) the range and weighted average of significant observable inputs used to develop Level 3 fair value measurements. This update is effective for annual and interim periods beginning after December 15, 2019, with early adoption permitted. As the requirements of this literature are disclosure only, ASU 2018-13 will not impact our financial condition or results of operations. In August 2018, the FASB issued ASU 2018-14, Compensation - Retirement Benefits - Defined Benefit Plans - General: Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans (“ASU 2018-14”). ASU 2018-14 modifies the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. These modifications include: (i) removing the requirement to disclose the amount in AOCI expected to be recognized as components of net periodic benefit cost over the next fiscal year; and (ii) adding the requirement to disclose an explanation of the reasons for significant gains or losses related to changes in the benefit obligation for the period. This update is effective for fiscal years ending after December 15, 2020, with early adoption permitted. As the requirements of this literature are disclosure only, ASU 2018-14 will not impact our financial condition or results of operations. In August 2018, the FASB issued ASU 2018-15, Intangibles - Goodwill and Other - Internal-Use Software: Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (“ASU 2018-15”). ASU 2018-15 aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. This update is effective for annual and interim periods beginning after December 15, 2019, with early adoption permitted. We are currently evaluating the impact of this guidance on our financial condition or results of operations. |
Statements of Cash Flow |
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Statements of Cash Flow | Statements of Cash Flows Supplemental cash flow information for the years ended December 31, 2018, 2017, and 2016 is as follows:
1Examples of corporate actions include exchanges, non-cash acquisitions, and stock-splits. The following table provides a reconciliation of cash and restricted cash reported within the Consolidated Balance Sheets that equate to the amount reported in the Consolidated Statements of Cash Flows:
Amounts included in restricted cash represent cash received from the NFIP, which is restricted to pay flood claims under the Write Your Own Program. |
Investments |
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Investments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments | Investments (a) Net unrealized gains on investments included in OCI by asset class were as follows for the years ended December 31, 2018, 2017, and 2016:
(b) Information regarding our HTM fixed income securities as of December 31, 2018 and December 31, 2017 was as follows:
Unrecognized holding gains and losses of HTM securities are not reflected in the Financial Statements, as they represent fair value fluctuations from the date a security is designated as HTM through the date of the balance sheet. (c) Information regarding our AFS securities as of December 31, 2018 and December 31, 2017 were as follows:
Unrealized gains and losses of AFS securities represent fair value fluctuations from the later of: (i) the date a security is designated as AFS; or (ii) the date that an OTTI charge is recognized on an AFS security, through the date of the balance sheet. These unrealized gains and losses are recorded in AOCI on the Consolidated Balance Sheets. As of the first quarter of 2018, equity securities are no longer required to be included in the table above under new accounting guidance that provides that unrealized gains and losses on equity securities should no longer be recognized in AOCI, but instead recognized though income. Refer to Note 3. "Adoption of Accounting Pronouncements" for additional information regarding the adoption of ASU 2016-01. (d) The severity of impairment on the securities in an unrealized/unrecognized loss position averaged approximately 2% of amortized cost at December 31, 2018 and approximately 1% at December 31, 2017. Quantitative information regarding unrealized losses on our AFS portfolio is provided below. Our HTM portfolio had $0.2 million in unrealized/unrecognized losses at December 31, 2018 and $0.1 million in unrealized/unrecognized losses at December 31, 2017.
The increase in the less than 12 months unrealized loss position was due to higher interest rates, with a 60-basis point increase in the 2-year U.S. Treasury Note yields and a 28-point basis increase in the 10-year U.S. Treasury Note yields during 2018. We do not currently intend to sell any of the securities in the tables above, nor will we be required to sell any of these securities. Considering these factors and our review of these securities under our OTTI policy as described in Note 2,“Summary of Significant Accounting Policies” of this Form 10-K, we have concluded that they are temporarily impaired as we believe: (i) they will mature at par value; (ii) they have not incurred a credit impairment; and (iii) future values of these securities will fluctuate with changes in interest rates. This conclusion reflects our current judgment as to the financial position and future prospects of the entity that issued the investment security and underlying collateral. (e) Fixed income securities at December 31, 2018, by contractual maturity are shown below. Mortgage-backed securities are included in the maturity tables using the estimated average life of each security. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. Listed below are the contractual maturities of fixed income securities at December 31, 2018:
(f) The following table summarizes our other investment portfolio by strategy:
1The maximum exposure to loss includes both the carrying value of these investments and the related unfunded commitments. In addition, tax credits that have been previously recognized in Other securities are subject to the risk of recapture, which we do not consider significant. 2Other securities primarily consists of tax credit investments. We have reviewed various investments included in the table above and have concluded that they are VIEs, but that we are not the primary beneficiary and therefore, consolidation is not required. We do not have a future obligation to fund losses or debts on behalf of these investments; however, we are contractually committed to make additional investments up to the remaining commitment outlined above. We have not provided any non-contractual financial support at any time during 2018 or 2017. The following is a description of our alternative investment strategies: Our private equity strategy includes the following:
Our private credit strategy includes the following:
Our real assets strategy includes the following:
Our alternative investment strategies generally employ low or moderate levels of leverage and may use hedging to reduce foreign exchange or interest rate volatility. At this time, our alternative investment strategies do not include hedge funds. We typically cannot redeem our investments with the general partners of these investments; however, occasionally these partnerships can be traded on the secondary market. Once liquidation is triggered by clauses within the limited partnership agreements or at the funds’ stated end date, we will receive our final allocation of capital and any earned appreciation of the underlying investments, assuming we have not divested ourselves of our partnership interests prior to that time. We currently receive distributions from these alternative investments through the realization of the underlying investments or income generated in the limited partnerships. The following tables set forth summarized financial information for our other investments portfolio, including the portion not owned by us. The investments are carried under the equity method of accounting. The last line in the income statement information table below reflects our share of the aggregate income, which is the portion included in our Financial Statements. As the majority of these investments report results to us on a one quarter lag, the summarized financial statement information is as of, and for the 12-month period ended, September 30:
(g) We did not have exposure to any credit concentration risk of a single issuer greater than 10% of our stockholders' equity, other than certain U.S. government agencies, as of December 31, 2018 or December 31, 2017. (h) We have pledged certain AFS fixed income securities as collateral related to our relationships with the Federal Home Loan Bank of Indianapolis ("FHLBI") and the Federal Home Loan Bank of New York ("FHLBNY"). In addition, certain securities were on deposit with various state and regulatory agencies at December 31, 2018 to comply with insurance laws. We retain all rights regarding all securities pledged as collateral. The following table summarizes the market value of these securities at December 31, 2018:
(i) The components of pre-tax net investment income earned were as follows:
(j) The following tables summarize OTTI by asset type for the periods indicated:
(k) Net realized and unrealized gains and losses included the following:
1Includes unrealized holding gains (losses) of: (i) $(3.1) million on equity securities remaining in our portfolio as of December 31, 2018; and (ii) $(26.3) million on equity securities sold in 2018. The components of net realized (losses) gains on disposals were as follows:
Realized gains and losses on the sale of investments are determined on the basis of the cost of the specific investments sold. Proceeds from the sale of AFS fixed income securities were $2,030.7 million, $1,197.9 million, and $926.5 million in 2018, 2017, and 2016, respectively. Proceeds from sale of equity securities were $113.3 million, $38.0 million, and $119.6 million in 2018, 2017, and 2016, respectively. Net realized (losses) gains in the table above were driven by the following:
2016: A repositioning of our equity portfolio, partially offset by net losses in our AFS fixed income portfolio related to the change in our strategy to more actively manage this portfolio. |
Comprehensive Income |
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Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive Income | Comprehensive Income (a) The components of comprehensive income, both gross and net of tax, for 2018, 2017, and 2016 were as follows:
(b) The balances of, and changes in, each component of AOCI (net of taxes) as of December 31, 2018 and 2017 were as follows:
1 Upon adoption of ASU 2016-01 and ASU 2018-02 in the first quarter of 2018, we recognized a $25.0 million cumulative-effect adjustment to the opening balance of AOCI, which represents the after-tax net unrealized gain on our equity portfolio as of December 31, 2017 and the one-time reclassification from AOCI to retained earnings for the stranded tax assets that were created in AOCI from the enactment of Tax Reform. See Note 3. "Adoption of Accounting Pronouncements" above for additional information. The reclassifications out of AOCI are as follows:
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Fair Value Measurements |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | Fair Value Measurements The following table presents the carrying amounts and estimated fair values of our financial instruments as of December 31, 2018 and 2017:
For discussion regarding the fair value techniques of our financial instruments, refer to Note 2. "Summary of Significant Accounting Policies" in this Form 10-K. The following tables provide quantitative disclosures of our financial assets that were measured and recorded at fair value at December 31, 2018 and 2017:
1There were no transfers of securities between Level 1 and Level 2. 2In accordance with ASU 2015-07, investments amounting to $37.3 million and $23.7 million at December 31, 2018 and December 31, 2017, respectively, were measured at fair value using the net asset value per share (or its practical expedient) and have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to total assets measured at fair value. The following table provides a summary of the changes in the fair value of securities measured using Level 3 inputs and related quantitative information during 2018:
The following tables provide quantitative information regarding our financial assets and liabilities that were not measured, but were disclosed at fair value at December 31, 2018 and 2017:
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Reinsurance |
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Reinsurance Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reinsurance | Reinsurance Our Financial Statements reflect the effects of assumed and ceded reinsurance transactions. Assumed reinsurance refers to the acceptance of certain insurance risks that other insurance entities have underwritten. Ceded reinsurance involves transferring certain insurance risks (along with the related written and earned premiums) that we have underwritten to other insurance companies that agree to share these risks. The primary purpose of ceded reinsurance is to protect the Insurance Subsidiaries from potential losses in excess of the amount that we are prepared to accept. Our major treaties covering property, property catastrophe, and casualty business are excess of loss contracts. In addition, we have an intercompany quota share pooling arrangement and other minor reinsurance treaties. As a Standard Commercial Lines and E&S Lines writer, we are subject to the Terrorism Risk Insurance Program Reauthorization Act ("TRIPRA"), which was extended by Congress to December 31, 2020. TRIPRA requires private insurers and the United States government to share the risk of loss on future acts of terrorism certified by the U.S. Secretary of the Treasury. Under TRIPRA, each participating insurer is responsible for paying a deductible of specified losses before federal assistance is available. This deductible is based on a percentage of the prior year’s applicable Standard Commercial Lines and E&S Lines premiums. In 2019, our deductible is approximately $339 million. For losses above the deductible, the federal government will pay 81% of losses to an industry limit of $100 billion, and the insurer retains 19%. The federal share of losses will be reduced to 80% in 2020. The Insurance Subsidiaries remain liable to policyholders to the extent that any reinsurer becomes unable to meet their contractual obligations. In addition to this direct counterparty credit risk, we have indirect counterparty credit risk as our reinsurers often enter into their own reinsurance programs, or retrocessions, as part of managing their exposure to large losses. We evaluate and monitor the financial condition of our reinsurers under voluntary reinsurance arrangements to minimize our exposure to significant losses from reinsurer insolvencies. On an ongoing basis, we review amounts outstanding, length of collection period, changes in reinsurer credit ratings, and other relevant factors to determine collectability of reinsurance recoverables. The allowance for uncollectible reinsurance recoverables was $4.5 million at December 31, 2018 and $4.6 million at December 31, 2017. The following table represents our total reinsurance balances segregated by reinsurer to illustrate our concentration of risk throughout our reinsurance portfolio:
1Considered to have minimal risk of default. 2Includes letters of credit, trust funds, and funds held against reinsurance recoverables. Under our reinsurance arrangements, which are prospective in nature, reinsurance premiums ceded are recorded as prepaid reinsurance and amortized over the remaining contract period in proportion to the reinsurance protection provided, or recorded periodically, as per the terms of the contract, in a direct relationship to the gross premium recording. Reinsurance recoveries are recognized as gross losses are incurred. The following table contains a listing of direct, assumed, and ceded reinsurance amounts for premiums written, premiums earned, and loss and loss expense incurred:
The ceded premiums and losses related to our participation in the NFIP, under which 100% of our flood premiums, and loss and loss expense are ceded to the NFIP, are as follows:
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Reserve for Loss and Loss Expense |
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Insurance Loss Reserves [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reserve for Loss and Loss Expense | Reserve for Loss and Loss Expense (a) The table below provides a roll forward of reserves for loss and loss expense for beginning and ending reserve balances:
Our net loss and loss expense reserves increased by $171.1 million in 2018, $104.9 million in 2017, and $113.8 million in 2016. The loss and loss expense reserves are net of anticipated recoveries for salvage and subrogation claims, which amounted to $67.7 million for 2018, $64.8 million for 2017, and $64.9 million for 2016. The increase in net loss and loss expense reserves in 2018 was primarily driven by increases in: (i) current year loss costs on our commercial automobile line of business; and (ii) exposure due to premium growth. This increase was partially offset by favorable prior year loss development, largely driven by the workers compensation and general liability lines of business. In 2018, we experienced overall net favorable prior year loss development of $29.9 million, compared to $39.2 million in 2017 and $65.8 million in 2016. The following table summarizes the prior year development by line of business:
The Insurance Subsidiaries had $29.9 million of favorable prior accident year development during 2018, which included $41.5 million of net favorable casualty development and $11.6 million of unfavorable property development. The net favorable casualty reserve development was largely driven by the workers compensation and general liability lines of business. Partially offsetting this net favorable development was $37.5 million of unfavorable casualty development in the commercial auto line of business. In addition, our E&S casualty lines experienced unfavorable development of $12.0 million in 2018. The majority of the 2018 net favorable development was attributable to our workers compensation line of business, which was impacted by continued favorable medical trends in accident years 2017 and prior. Partially offsetting this was adverse development in the commercial automobile line of business, driven by increases in severities in accident years 2015 through 2017. The Insurance Subsidiaries had $39.2 million of favorable prior accident year development during 2017, which included $48.6 million of net favorable casualty development and $9.4 million of unfavorable property development. The net favorable casualty reserve development was largely driven by the workers compensation and general liability lines of business, including products liability and excess liability. Partially offsetting this net favorable development was $36.0 million of unfavorable casualty development in the commercial auto line of business, which was primarily driven by: (i) higher than expected frequencies and severities in accident years 2015 and 2016, and (ii) higher than expected severities in accident years 2012 through 2014. In addition, our E&S casualty lines experienced unfavorable development of $10.0 million in 2017. The majority of the 2017 net favorable development was attributable to accident years 2014 and prior, driven by the general liability and workers compensation lines of business. This net favorable development was partially offset by unfavorable development in accident years 2015 and 2016 attributable to our commercial auto and E&S casualty lines of business. The unfavorable development in our commercial auto line of business was driven primarily by bodily injury liability for accident years 2012 through 2016, driven by higher than expected frequency and severity. The Insurance Subsidiaries had $65.8 million of favorable prior accident year development during 2016, which included $69.0 million of net favorable casualty development and $3.2 million of unfavorable property development. The net favorable casualty reserve development was largely driven by the workers compensation and general liability lines of business, including products liability and excess liability. Partially offsetting this net favorable development was $25 million of unfavorable casualty development in the commercial automobile line of business. In addition, our E&S casualty lines experienced unfavorable development of $6.0 million in 2016. The majority of the 2016 net favorable development was attributable to accident years 2013 and prior, driven by the workers compensation and general liability lines of business. This net favorable development was partially offset by unfavorable development in accident years 2014 and 2015 attributable to our commercial auto and E&S casualty lines of business. The unfavorable development in our commercial auto line of business was driven primarily by bodily injury liability for accident years 2014 and 2015. The unfavorable development in accident year 2014 was driven by higher than expected severity, whereas accident year 2015 was driven by higher than expected frequency and severity. (b) Reserves established for liability insurance include exposure to asbestos and environmental claims. These claims have arisen primarily from insured exposures in municipal government, small non-manufacturing commercial risk, and homeowners policies. The emergence of these claims is slow and highly unpredictable. There are significant uncertainties in estimating our exposure to asbestos and environmental claims (for both case and IBNR reserves) resulting from lack of relevant historical data, the delayed and inconsistent reporting patterns associated with these claims, and uncertainty as to the number and identity of claimants and complex legal and coverage issues. Legal issues that arise in asbestos and environmental cases include federal or state venue, choice of law, causation, admissibility of evidence, allocation of damages and contribution among joint defendants, successor and predecessor liability, and whether direct action against insurers can be maintained. Coverage issues that arise in asbestos and environmental cases include the interpretation and application of policy exclusions, the determination and calculation of policy limits, the determination of the ultimate amount of a loss, the extent to which a loss is covered by a policy, if at all, the obligation of an insurer to defend a claim, and the extent to which a party can prove the existence of coverage. Courts have reached different and sometimes inconsistent conclusions on these legal and coverage issues. We do not discount to present value that portion of our loss and loss expense reserves expected to be paid in future periods. The following table details our loss and loss expense reserves for various asbestos and environmental claims:
Reserves for asbestos and environmental claims are highly uncertain. There are significant uncertainties associated with estimating critical assumptions, such as average clean-up costs, third-party costs, potentially responsible party shares, allocation of damages, litigation and coverage costs, and potential state and federal legislative changes. Estimating IBNR is challenging because of the delayed and inconsistent reporting patterns associated with these claims. Traditional actuarial approaches cannot be applied because past loss history is not necessarily indicative of future behavior. While certain alternative projection models can be applied, such models can produce significantly different results with small changes in assumptions. As a result, reserves for asbestos and environmental require a high degree of judgment. Because of the significant uncertainty in the estimate, we do not calculate an asbestos and environmental loss range. Historically, our asbestos and environmental claims have been significantly lower in volume than many other standard commercial lines carriers since, prior to the introduction of the absolute pollution exclusion endorsement in the mid-1980’s, we were primarily a Standard Personal Lines carrier and therefore do not have broad exposure to asbestos and environmental claims. The following table provides a roll forward of gross and net asbestos and environmental incurred loss and loss expense and related reserves thereon:
(c) The following is information about incurred and paid claims development as of December 31, 2018, net of reinsurance, as well as cumulative claim frequency and the total of IBNR liabilities. During the experience period, we implemented a series of claims-related initiatives and claims management changes. These initiatives focused on claims handling and reserving, medical claims costs, and loss expenses. As a result of these initiatives, several historical patterns have changed and may no longer be appropriate to use as the sole basis for projections.
In 2011, the Parent purchased Mesa Underwriters Specialty Insurance Company ("MUSIC"), a wholly-owned E&S Lines subsidiary of Montpelier Re Holdings, Ltd. Under the terms of the purchase agreement, the Parent acquired net loss and loss reserves amounting to approximately $15 million. All development on this acquired business was fully reinsured as of the acquisition date. (d) The reconciliation of the net incurred and paid claims development tables to the liability for loss and loss expenses in the consolidated statement of financial position is as follows:
(e) The table below reflects the historical average annual percentage payout of incurred claims by age. For example, the general liability line of business averages payout of 6.5% of its ultimate losses in the first year, 12.2% in the second year, and so forth. The following is supplementary information about average historical claims duration as of December 31, 2018:
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Indebtedness | Indebtedness The table below provides a summary of our outstanding debt at December 31, 2018 and 2017:
1 Beginning on January 1, 2019, finance lease obligations will also be included in our outstanding debt balance upon the adoption of the new lease accounting standard. For further information, refer to Note 3. "Adoption of Accounting Pronouncements, above. Short-term Debt SICA borrowed: (i) $75 million in short-term funds from the FHLBNY on February 27, 2018 at an interest rate of 1.75%, which was repaid on March 20, 2018; and (ii) $55 million in short-term funds from the FHLBNY on March 28, 2018 at an interest rate of 1.98%, which was repaid on April 18, 2018. The Parent's line of credit with Wells Fargo Bank, National Association, as administrative agent, and Branch Banking and Trust Company (BB&T) (referred to as our "Line of Credit"), was renewed effective December 1, 2015, with a borrowing capacity of $30 million, which can be increased to $50 million with the approval of both lending partners. Our Line of Credit expires on December 1, 2020, and has an interest rate, which varies and is based on, among other factors, the Parent’s debt ratings. There were no balances outstanding under our Line of Credit at December 31, 2018 or at any time during 2018. Our Line of Credit agreement contains representations, warranties, and covenants that are customary for credit facilities of this type, including, without limitation, financial covenants under which we are obligated to maintain a minimum consolidated net worth, minimum combined statutory surplus, maximum ratio of consolidated debt to total capitalization, and covenants limiting our ability to: (i) merge or liquidate; (ii) incur debt or liens; (iii) dispose of assets; (iv) make investments and acquisitions; and (v) engage in transactions with affiliates. The table below outlines information regarding certain of the covenants in the Line of Credit:
1Calculated in accordance with the Line of Credit agreement. In addition to the above requirements, the Line of Credit agreement contains a cross-default provision that provides that the Line of Credit will be in default if we fail to comply with any condition, covenant, or agreement (including payment of principal and interest when due on any debt with an aggregate principal amount of at least $20 million), which causes or permits the acceleration of principal. Additionally, the Line of Credit limits borrowings from the FHLBI and the FHLBNY to 10% of the respective member company's admitted assets for the previous year. Long-term Debt (1) In the first quarter of 2009, Selective Insurance Company of South Carolina ("SICSC") and Selective Insurance Company of the Southeast ("SICSE"), which are collectively referred to as the "Indiana Subsidiaries" as they are domiciled in Indiana, joined, and invested in, the FHLBI, which provides them with access to additional liquidity. The Indiana Subsidiaries’ aggregate investment in the FHLBI was $2.8 million at December 31, 2018 and December 31, 2017. Our investment provides us the ability to borrow approximately 20 times the total amount of the FHLBI common stock purchased with additional collateral, at comparatively low borrowing rates. The proceeds from the FHLBI borrowing on December 16, 2016 of $60 million were used to repay a $45 million borrowing from the FHLBI that was outstanding at the time, with the remaining $15 million used for general corporate purposes. All borrowings from the FHLBI require security. For information on investments that are pledged as collateral for these borrowings, see Note 5. "Investments" above. (2) In the fourth quarter of 2015, SICA and Selective Insurance Company of New York ("SICNY") joined, and invested in, the FHLBNY, which provides them with access to additional liquidity. The aggregate investment for both subsidiaries was $2.7 million at December 31, 2018 and $2.6 million at December 31, 2017. Our investment provides us the ability to borrow approximately 20 times the total amount of the FHLBNY common stock purchased with additional collateral, at comparatively low borrowing rates. In 2016, SICA borrowed the following amounts from the FHLBNY: (i) $25 million in August 2016 at an interest rate of 1.56%, which is due on August 16, 2021; and (ii) $25 million from the FHLBNY at an interest rate of 1.61%, which is due on July 21, 2021. All borrowings from the FHLBNY require security. For information on investments that are pledged as collateral for these borrowings, see Note 5. "Investments" above. (3) In February 2013, we issued $185 million of 5.875% Senior Notes due 2043. The notes became callable by us on February 8, 2018, at a price equal to 100% of their principal outstanding amount, plus accrued and unpaid interest to, but excluding, the date of redemption. A portion of the proceeds from this debt issuance was used to fully redeem the $100 million aggregate principal amount of our 7.5% Junior Subordinated Notes due 2066 that were outstanding at the time. Of the remaining net proceeds, $57.1 million was used to make capital contributions to the Insurance Subsidiaries, while the balance was used for general corporate purposes. There are no financial debt covenants to which we are required to comply in regards to these Senior Notes. (4) In November 2005, we issued $100 million of 6.70% Senior Notes due 2035. These notes were issued at a discount of $0.7 million resulting in an effective yield of 6.754%. Net proceeds of approximately $50 million were used to fund an irrevocable trust that subsequently funded certain payment obligations in respect of our outstanding debt. The remainder of the proceeds was used for general corporate purposes. The agreements covering these notes contain a standard default cross-acceleration provision that provides the 6.70% Senior Notes will enter a state of default upon the failure to pay principal when due or upon any event or condition that results in an acceleration of principal of any other debt instrument in excess of $10 million that we have outstanding concurrently with the 6.70% Senior Notes. There are no financial debt covenants to which we are required to comply in regards to these notes. (5) In November 2004, we issued $50 million of 7.25% Senior Notes due 2034. These notes were issued at a discount of $0.1 million, resulting in an effective yield of 7.27%. We contributed $25 million of the bond proceeds to the Insurance Subsidiaries as capital. The remainder of the proceeds was used for general corporate purposes. The agreements covering these notes contain a standard default cross-acceleration provision that provides the 7.25% Senior Notes will enter a state of default upon the failure to pay principal when due or upon any event or condition that results in an acceleration of principal of any other debt instrument in excess of $10 million that we have outstanding concurrently with the 7.25% Senior Notes. There are no financial debt covenants to which we are required to comply in regards to these notes. |
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Segment Reporting [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information | Segment Information The disaggregated results of our four reportable segments are used by senior management to manage our operations. These reportable segments are evaluated as follows:
In computing the results of each segment, we do not make adjustments for interest expense or corporate expenses. We do not maintain separate investment portfolios for the segments and therefore, do not allocate assets to the segments. Our combined insurance operations are subject to certain geographic concentrations, particularly in the Northeast and Mid-Atlantic regions of the country. In 2018, approximately 19% of NPW were related to insurance policies written in New Jersey. We had a goodwill balance of $7.8 million at both December 31, 2018 and 2017 on our Consolidated Balance Sheet that relates to our Standard Commercial Lines reporting unit. The following summaries present revenues (net investment income and net realized gains on investments in the case of the Investments segment) and pre-tax income for the individual segments:
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Earnings Per Share |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share | Earnings per Share The following table provides a reconciliation of the numerators and denominators of basic and diluted earnings per share ("EPS"):
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Federal Income Taxes |
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Income Tax Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Federal Income Taxes | Federal Income Taxes (a) On December 22, 2017, the Tax Cuts and Jobs Act of 2017 ("Tax Reform") was signed into law, which among other implications, reduced our statutory corporate tax rate from 35% to 21% beginning with our 2018 tax year. We revalued our deferred tax inventory at December 31, 2017 to reflect this reduction, which resulted in a $20.2 million charge to income as illustrated in the rate table below. As of December 31, 2017, our accounting for the impact of Tax Reform on our deferred tax assets and liabilities was complete with the exception of amounts related to loss reserve discounting. Prior to Tax Reform, we had elected to use our own loss reserve payment patterns for determining the factors to be used for calculating our discounted loss reserves for federal income tax purposes. Under Tax Reform, this election was eliminated and we are now required to utilize discount factors based on industry experience and a corporate bond yield curve, which the IRS had not finalized as of December 31, 2017. Considering this, at December 31, 2017, we calculated a pre-tax decrease to our discounted loss reserves of $35 million by utilizing the industry experience approach under the tax law that existed prior to Tax Reform. This increased the deferred tax asset related to loss reserves by $7.5 million. A Tax Reform transition rule allows this change in accounting method to be amortized into expense over an eight-year period beginning in 2018. As a result, we established an offsetting deferred tax liability of $7.5 million as of December 31, 2017. In the fourth quarter of 2018, the IRS published the loss reserve discount factors to be used for calculating the beginning and ending 2018 discounted loss reserves under the industry experience approach. Based on these factors, we calculated a pre-tax decrease to our discounted loss reserves of $125 million, which resulted in a deferred tax asset of $26.3 million, an increase from the $7.5 million estimate described above. The $26.3 million adjustment is being taken into income over eight years, beginning with 2018, at approximately $3.3 million per year. (b) A reconciliation of federal income tax on income at the corporate rate to the effective tax rate is as follows:
12018 includes approximately $3.8 million of capital loss carry back items to prior tax years at the previous 35% statutory tax rate. In addition to the impact of Tax Reform discussed above, our statutory tax rate reconciliation for 2018 and 2017 benefited from accounting literature implemented in 2017 that requires the tax effects of share-based compensation to be recognized in the income tax provision. Prior to 2017, these amounts were recorded in additional paid-in capital. (c) The tax effects of the significant temporary differences that gave rise to deferred tax assets and liabilities were as follows:
Net deferred income tax assets increased by $21.6 million in 2018, driven by an $18.6 million decrease in gross deferred tax liabilities as rising interest rates have reduced unrealized gains on our fixed income securities portfolio. After considering all evidence, both positive and negative, with respect to our federal tax loss carryback availability, expected levels of pre-tax financial statement income, and federal taxable income, we believe it is more likely than not that the existing deductible temporary differences will reverse during periods in which we generate net federal taxable income or have adequate federal carryback availability. As a result, we had no valuation allowance recognized for federal deferred tax assets at December 31, 2018 or 2017. We have analyzed our tax positions in all open tax years, which as of December 31, 2018 were 2015 through 2017, and we believe our tax positions will more likely than not be sustained upon examination, including related appeals or litigation. In the event we had a tax position that did not meet the more likely than not criteria, any tax, interest, and penalties incurred related to such a position would be reflected in "Total federal income tax expense" on our Consolidated Statements of Income. We are not currently under a federal income tax audit for any tax year. |
Retirement Plans |
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Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement Plans | Retirement Plans (a) Selective Insurance Retirement Savings Plan (“Retirement Savings Plan”) SICA offers a voluntary defined contribution 401(k) plan that is available to most of our employees and is a tax-qualified retirement plan subject to ERISA. Expense recorded for this plan was $15.8 million in both 2018 and 2017, and $15.0 million in 2016. (b) Deferred Compensation Plan SICA offers a non-qualified deferred compensation plan, the Selective Insurance Company of America Deferred Compensation Plan ("Deferred Compensation Plan") to a group of management or highly compensated employees as a method of recognizing and retaining such employees. The Deferred Compensation Plan provides these employees the opportunity to elect to defer receipt of specified portions of compensation and to have such deferred amounts deemed to be invested in specified investment options. In addition to the employee deferrals, SICA may choose to make matching contributions to some or all of the participants in this plan to the extent the participant did not receive the maximum matching or non-elective contributions permissible under the Retirement Savings Plan due to limitations under the Internal Revenue Code or the Retirement Savings Plan. Expense recorded for these contributions was $0.4 million in 2018, $0.2 million in 2017, and $0.3 million in 2016. (c) Retirement Income Plan and Retirement Life Plan SICA maintains a defined benefit pension plan, the Retirement Income Plan for Selective Insurance Company of America (the "Pension Plan"). This qualified, noncontributory plan is closed to new entrants and existing participants ceased accruing benefits after March 31, 2016. In addition to the Pension Plan, SICA also sponsors the Supplemental Excess Retirement Plan (the "Excess Plan") and a life insurance benefit plan (the "Retirement Life Plan"). Both of these plans are closed to new entrants and participants in the Excess Plan ceased accruing benefits after March 31, 2016. The Retirement Life Plan does not accrue benefits and this plan applies only to retirees who terminated employment with SICA on or before March 31, 2009. These are both unfunded plans with benefit obligations as of December 31, 2018 and December 31, 2017 of $9.5 million and $10.1 million, respectively, for the Excess Plan and $5.8 million and $6.4 million, respectively, for the Retirement Life Plan. Expense recorded for the Excess Plan was $0.4 million in both 2018 and 2017, and $0.5 million in 2016. Expense recorded for the Retirement Life Plan was $0.3 million in each of 2018, 2017, and 2016. The following tables provide details on the Pension Plan for 2018 and 2017:
The estimated net actuarial loss for the Pension Plan that will be amortized from AOCI into net periodic benefit cost during the 2019 fiscal year is $2.6 million.
1This assumption was 4.00% through March 31, 2016, the date after which benefits ceased accruing for all participants of the Pension Plan. Our latest measurement date was December 31, 2018, at which time we increased our expected return on plan assets to 6.50%, reflecting a higher expected allocation to risk-seeking assets in the portfolio. When determining the most appropriate discount rate to be used in the valuation, we consider, among other factors, our expected payout patterns of the Pension Plan's obligations as well as our investment strategy, and we ultimately select the rate that we believe best represents our estimate of the inherent interest rate at which our pension and post-retirement life benefits can be effectively settled. The approach we utilize discounts the individual expected cash flows using the applicable spot rates derived from the yield curve over the projected cash flow period. The weighted average discount rate used to determine 2019 interest cost is 4.12%. Pension Plan Assets Assets of the Pension Plan are invested to adequately support the liability associated with the Pension Plan's defined benefit obligation. Our return objective is to exceed the returns of the plan's policy benchmark, which is the return the plan would have earned if the assets were invested according to the target asset class weightings and earned index returns shown below. In 2019, we will continue to phase in adjustments to the asset allocation to steadily close the gap between the duration of the assets and the duration of the liabilities, provided certain improved funding targets are achieved. Over time, the target and actual asset allocations may change based on the funded status of the Pension Plan and market return expectations. The Pension Plan’s target ranges, as well as the actual weighted average asset allocation by strategy, at December 31 were as follows:
1Includes limited partnerships. 2Target percent allocations may change over time based on the funded status of the plan and market return expectations. 3The actual percentage of assets allocated to short-term investments is higher than our target as of December 31, 2018 due to portfolio rebalancing initiatives that are expected to be completed during 2019. As part of this rebalancing initiative, $49 million, or 15%, of plan assets were redeployed into risk seeking assets in January 2019. Excluding the impact of this redeployment, our short-term investments represented 5% of plan assets at December 31, 2018. The use of derivative instruments is permitted under certain circumstances for the Pension Plan portfolio, but may not be used for unrelated speculative purposes or to create exposures that are not permitted in the Pension Plan's investment guidelines. Within the liability hedging assets, derivatives may be used to mitigate interest rate risk and reduce the interest duration mismatch between assets and liabilities of the Pension Plan to help insulate the funded status of the plan. We currently invest in a U.S. Treasury overlay derivative strategy, within the funds in our liability hedging assets, to manage the interest rate duration mismatch between the assets and liabilities of the Pension Plan. Considering the impact of this derivative overlay, the liability hedging assets provide for an approximate 50% hedge against the projected benefit obligation. The Pension Plan had no investments in the Parent’s common stock as of December 31, 2018 or 2017. For information regarding investments in funds of our related parties, refer to Note 16. "Related Party Transactions" below. The techniques used to determine the fair value of the Pension Plan's invested assets that appear on the following page are as follows:
For discussion regarding the levels within the fair value hierarchy, see Note 2. "Summary of Significant Accounting Policies." In addition, refer to Note 5. "Investments" for discussion regarding the limited partnership investment strategies, excluding the middle market lending strategy, as these investments are not part of the Pension Plan. The Pension Plan invests in hedge funds, as part of its overall private asset strategy, with diversified exposure to a number of underlying systematic strategies that include arbitrage, macro-oriented, and equity-related strategies. These positions are expected to improve the risk-adjusted return of the portfolio given their lower volatility profile than public equities, with returns that are generally uncorrelated to traditional asset classes over a complete market cycle. The following tables provide quantitative disclosures of the Pension Plan’s invested assets that are measured at fair value on a recurring basis:
1In accordance with ASU 2015-07, certain investments that are measured at fair value using the net asset value per share (or its practical expedient) have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to total Pension Plan invested assets. Contributions We presently do not anticipate contributing to the Pension Plan in 2019, as we have no minimum required contribution amounts. Benefit Payments
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Share-Based Payments |
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | Share-Based Payments Active Plans As of December 31, 2018, the following four plans were available for the issuance of share-based payment awards:
The following table provides information regarding the approval of these plans:
The types of awards that can be issued under each of these plans are as follows:
Shares authorized and available for issuance as of December 31, 2018 are as follows:
Retired Plans The following plans are closed for the issuance of new awards, although awards outstanding continue in effect according to the terms of the applicable award agreements:
1Awards outstanding under the 2005 Stock Plan consisted of 47,268 shares deferred by our non-employee directors and 126,735 stock options. RSU Transactions A summary of the RSU transactions under our share-based payment plans is as follows:
As of December 31, 2018, total unrecognized compensation expense related to unvested RSU awards granted under our Stock Plan was $11.0 million. That expense is expected to be recognized over a weighted-average period of 1.7 years. The total intrinsic value of RSUs vested was $18.0 million for 2018, $16.0 million for 2017, and $12.6 million for 2016. In connection with vested RSUs, the total value of the DEUs that vested was $0.8 million in 2018, $0.9 million in 2017, and $0.7 million in 2016. Option Transactions A summary of the stock option transactions under our 2005 Stock Plan is as follows:
The total intrinsic value of options exercised was $4.5 million in 2018, $4.0 million in 2017, and $2.3 million in 2016. CIU Transactions The liability recorded in connection with our Cash Plan was $21.6 million at December 31, 2018 and $37.0 million at December 31, 2017. The remaining cost associated with the CIUs is expected to be recognized over a weighted average period of 0.8 years. The CIU payments made were $20.2 million in 2018, $14.2 million in 2017, and $14.3 million in 2016. ESPP and Agent Plan Transactions A summary of ESPP and Agent Plan share issuances is as follows:
Fair Value Measurements The grant date fair value of RSUs is based on the market price of our common stock on the grant date, adjusted for the present value of our expected dividend payments. The expense recognized for share-based awards is based on the number of shares or units expected to be issued at the end of the performance period and the grant date fair value. The grant date fair value of each option award is estimated using the Black Scholes option valuation model ("Black Scholes"). The following are the significant assumptions used in applying Black Scholes: (i) the risk-free interest rate, which is the implied yield currently available on U.S. Treasury zero-coupon issues with an equal remaining term; (ii) the expected term, which is based on historical experience of similar awards; (iii) the dividend yield, which is determined by dividing the expected per share dividend during the coming year by the grant date stock price; and (iv) the expected volatility, which is based on the volatility of the Parent's stock price over a historical period comparable to the expected term. In applying Black Scholes, we use the weighted average assumptions illustrated in the following table:
The weighted-average fair value of options and stock per share, including RSUs granted for the Parent's stock plans, during 2018, 2017, and 2016 was as follows:
The fair value of the CIU liability is remeasured at each reporting period through the settlement date of the awards, which is three years from the date of grant based on an amount expected to be paid. A Monte Carlo simulation is performed to approximate the projected fair value of the CIUs that, in accordance with the CIU agreements established under the Cash Plan, is adjusted to reflect our performance on specified indicators as compared to targeted peer companies. Expense Recognition The following table provides share-based compensation expense in 2018, 2017, and 2016:
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Related Party Transactions |
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Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions William M. Rue, a Director of the Parent, is Chairman of, and owns more than 10% of the equity of, Chas. E. Rue & Son, Inc., t/a Rue Insurance, a general independent retail insurance agency ("Rue Insurance"). Rue Insurance is an appointed distribution partner of the Insurance Subsidiaries on terms and conditions similar to those of our other distribution partners, which includes the right to participate in the Agent Plan. Mr. Rue’s son is President, and an employee, of Rue Insurance, and owns more than 10% of the equity of Rue Insurance. Mr. Rue’s daughter is an employee of Rue Insurance. Our relationship with Rue Insurance has existed since 1928. Rue Insurance placed insurance policies with the Insurance Subsidiaries for its customers and itself. Direct premiums written associated with these policies were $10.1 million in 2018, $11.1 million in 2017, and $10.4 million in 2016. In return, the Insurance Subsidiaries paid standard market commissions, including supplemental commissions, to Rue Insurance of $2.1 million in 2018, $2.3 million in 2017, and $2.1 million in 2016. Amounts due to Rue Insurance at December 31, 2018 and December 31, 2017 were $0.4 million and $0.6 million, respectively. All contracts and transactions with Rue Insurance were consummated in the ordinary course of business on an arm's-length basis. In 2005, we established a private foundation, now named The Selective Insurance Group Foundation (the "Foundation"), under Section 501(c)(3) of the Internal Revenue Code. The Board of Directors of the Foundation is comprised of some of the Parent's officers. We made $0.5 million of contributions to the Foundation in 2018. We made no contributions to the Foundation in 2017 and 2016, respectively. BlackRock, Inc., a leading publicly traded investment management firm (“BlackRock”), has purchased our common shares in the ordinary course of its investment business and has previously filed Schedules 13G/A with the SEC. On January 31, 2019, BlackRock filed a Schedule 13G/A reporting beneficial ownership as of December 31, 2018, of 14.2% of our common stock. In connection with purchasing our common shares, BlackRock filed the necessary filings with insurance regulatory authorities. On the basis of those filings, BlackRock is deemed not to be a controlling person for the purposes of applicable insurance law. We are required to disclose related party information for our transactions with BlackRock. BlackRock is highly regulated, serves its clients as a fiduciary, and has a diverse platform of active (alpha) and index (beta) investment strategies across asset classes that enables it to tailor investment outcomes and asset allocation solutions for clients. BlackRock also offers the BlackRock Solutions® investment and risk management technology platform, Aladdin®, risk analytics, advisory, and technology services and solutions to a broad base of institutional and wealth management investors. We incurred expenses related to BlackRock for services rendered of $2.0 million in both 2018 and 2017, and $0.4 million in 2016. Amounts payable for such services at December 31, 2018 and December 31, 2017, were $1.0 million and $0.5 million, respectively. As part of our overall investment diversification, we invest in various BlackRock funds from time to time. The market value of these investments were $0.8 million at December 31, 2018, and $0.5 million at both December 31, 2017 and December 31, 2016. There were no material transactions related to these holdings in 2018 and 2017. During 2016, we sold $77.6 million of these investments, which resulted in a $1.1 million gain on our investment portfolio. In addition, we recorded $2.3 million of investment income on these funds in 2016. There were no amounts payable on the settlement of these investment transactions at December 31, 2018 or December 31, 2017. Our Pension Plan contained investments in BlackRock funds of $131.9 million at December 31, 2018 and $134.3 million at December 31, 2017. We recorded a net investment loss on these funds of $9.3 million in 2018, net investment income of $25.2 million in 2017, and net investment income of $8.5 million in 2016. In addition, our Deferred Compensation Plan and Retirement Savings Plan may offer our employees the option to invest in various BlackRock funds. All contracts and transactions with BlackRock were consummated in the ordinary course of business on an arm's-length basis. The Vanguard Group ("Vanguard"), one of the world's largest investment management companies, offers low cost mutual funds and exchange-trade funds ("ETFs"), as well as other investment related services. On January 10, 2019, Vanguard filed a Schedule 13G/A reporting beneficial ownership as of December 31, 2018, of 10.1% of our common stock. In connection with purchasing our common shares, Vanguard filed the necessary filings with insurance regulatory authorities. On the basis of those filings, we do not expect Vanguard to be deemed a controlling person for the purposes of applicable insurance law. We are required to disclose related party information for our transactions with Vanguard. As part of our overall investment diversification, we may invest in various Vanguard funds from time to time. During 2018, we purchased $11.5 million in a Vanguard ETF and recorded dividend income of $0.4 million, with no amounts payable on the settlement of this transaction at December 31, 2018. The market value of this fund in our investment portfolio at December 31, 2018 was $10.5 million. There were no transactions with Vanguard in 2017 and 2016. Our Pension Plan contained investments in Vanguard funds of $86.3 million at December 31, 2017, but no investment in these funds existed at December 31, 2018. We recorded a net investment loss on these funds of $5.5 million in 2018, net investment income of $9.1 million in 2017, and net investment income of $5.4 million in 2016. In addition, our Deferred Compensation Plan and Retirement Savings Plan may offer our employees the option to invest in various Vanguard funds. All transactions with Vanguard are consummated in the ordinary course of business on an arm's-length basis. |
Commitments and Contingencies |
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Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies | Commitments and Contingencies (a) We purchase annuities from life insurance companies to fulfill obligations under claim settlements that provide for periodic future payments to claimants. As of December 31, 2018, we had purchased such annuities with a present value of $21.0 million for settlement of claims on a structured basis for which we are contingently liable. To our knowledge, there are no material defaults from any of the issuers of such annuities. (b) We have various operating leases for office space, equipment, and fleet vehicles. Such lease agreements, which expire at various times, are generally renewed or replaced by similar leases. Rental expense under these leases amounted to $10.4 million in 2018, $10.8 million in 2017, and $12.3 million in 2016. We also lease computer hardware and software under capital lease agreements expiring at various dates through 2022. See item (p) of Note 2. "Summary of Significant Accounting Policies" in this Form 10-K for information on our accounting policy regarding leases. In addition, certain of these leases are non-cancelable, and liability for payment will continue even though the leased asset may no longer be in use. At December 31, 2018, the total future minimum rental commitments under non-cancelable leases were as follows:
(c) As of December 31, 2018, we had contractual obligations that expire at various dates through 2036 to invest up to an additional $202.3 million in alternative and other investments. There is no certainty that any such additional investment will be required. For additional information regarding these investments, see item (f) of Note 5. "Investments" in this Form 10-K. In addition, as of December 31, 2018, we had the following contractual obligations: (i) $17.8 million to further invest in non-publicly traded common stock within our equity portfolio that expire in 2023; and (ii) $40.4 million to further invest in non-publicly traded CLOs in our fixed income securities portfolio that expire through 2030. We expect to have the capacity to repay and/or refinance these obligations as they become due. |
Litigation |
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Dec. 31, 2018 | |
Loss Contingency, Information about Litigation Matters [Abstract] | |
Litigation | Litigation In the ordinary course of conducting business, we are named as defendants in various legal proceedings. Most of these proceedings are claims litigation involving our Insurance Subsidiaries as either: (i) liability insurers defending or providing indemnity for third-party claims brought against our customers; or (ii) insurers defending first-party coverage claims brought against them. We account for such activity through the establishment of unpaid loss and loss expense reserves. We expect that any potential ultimate liability in such ordinary course claims litigation will not be material to our consolidated financial condition, results of operations, or cash flows after consideration of provisions made for potential losses and costs of defense. From time to time, our Insurance Subsidiaries also are named as defendants in other legal actions, some of which assert claims for substantial amounts. These actions include, among others, putative class actions seeking certification of a state or national class. Such putative class actions have alleged, for example, improper reimbursement of medical providers paid under workers compensation and personal and commercial automobile insurance policies. Similarly, our Insurance Subsidiaries are also named from time-to-time in individual actions seeking extra-contractual damages, punitive damages, or penalties, some of which allege bad faith in the handling of insurance claims. We believe that we have valid defenses to these cases. We expect that any potential ultimate liability in any such lawsuit will not be material to our consolidated financial condition, after consideration of provisions made for estimated losses. Nonetheless, given the inherent unpredictability of litigation and the large or indeterminate amounts sought in certain of these actions, an adverse outcome in certain matters could possibly have a material adverse effect on our consolidated results of operations or cash flows in particular quarterly or annual periods. As of December 31, 2018, we do not believe the Company was involved in any legal action that could have a material adverse effect on our consolidated financial condition, results of operations, or cash flows. |
Statutory Financial Information, Capital Requirements, and Restrictions on Dividends and Transfers of Funds |
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Insurance [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Statutory Financial Information, Capital Requirments, and Retrictions on Dividends and Transfers of Funds | Statutory Financial Information, Capital Requirements, and Restrictions on Dividends and Transfers of Funds (a) Statutory Financial Information The Insurance Subsidiaries prepare their statutory financial statements in accordance with accounting principles prescribed or permitted by the various state insurance departments of domicile. Prescribed statutory accounting principles include state laws, regulations, and general administrative rules, as well as a variety of publications of the National Association of Insurance Commissioners (“NAIC"). Permitted statutory accounting principles encompass all accounting principles that are not prescribed; such principles differ from state to state, may differ from company to company within a state and may change in the future. The Insurance Subsidiaries do not utilize any permitted statutory accounting principles that affect the determination of statutory surplus, statutory net income, or risk-based capital (“RBC”). As of December 31, 2018, the various state insurance departments of domicile have adopted the March 2018 version of the NAIC Accounting Practices and Procedures manual in its entirety, as a component of prescribed or permitted practices. The following table provides statutory data for each of our Insurance Subsidiaries:
(b) Capital Requirements The Insurance Subsidiaries are required to maintain certain minimum amounts of statutory surplus to satisfy the requirements of their various state insurance departments of domicile. RBC requirements for property and casualty insurance companies are designed to assess capital adequacy and to raise the level of protection that statutory surplus provides for policyholders. The Insurance Subsidiaries' combined total adjusted capital exceeded the authorized control level RBC, as defined by the NAIC based on their 2018 statutory financial statements. In addition to statutory capital requirements, we are impacted by various rating agency requirements related to certain rating levels. These required capital levels may be more than statutory requirements. (c) Restrictions on Dividends and Transfers of Funds Our ability to declare and pay dividends on the Parent's common stock is dependent on liquidity at the Parent coupled with the ability of the Insurance Subsidiaries to declare and pay dividends, if necessary, and/or the availability of other sources of liquidity to the Parent. In addition to regulatory restrictions on the availability of dividends that our Insurance Subsidiaries can pay to the Parent, the maximum amount of dividends the Parent can pay our shareholders is limited by certain New Jersey corporate law provisions that limit dividends if either: (i) the Parent would be unable to pay its debts as they became due in the usual course of business; or (ii) the Parent’s total assets would be less than its total liabilities. The Parent’s ability to pay dividends to shareholders also are impacted by covenants in its Line of Credit agreement that obligate it, among other things, to maintain a minimum consolidated net worth, statutory surplus, and debt-to-capital ratio. As of December 31, 2018, the Parent had an aggregate of $146.0 million in investments and cash available to fund future dividends and interest payments. These amounts are not subject to any regulatory restrictions other than the standard state insolvency restrictions noted above, whereas our consolidated retained earnings of $1.9 billion is predominately restricted due to the regulation associated with our Insurance Subsidiaries. In 2019, the Insurance Subsidiaries have the ability to provide for $210.0 million in annual dividends to the Parent; however, as regulated entities, these dividends are subject to certain restrictions, which are further discussed below. The Parent also has available to it other potential sources of liquidity, such as: (i) borrowings from our Indiana Subsidiaries; (ii) debt issuances; (iii) common stock issuances; and (iv) borrowings under our Line of Credit. Borrowings from our Indiana Subsidiaries are governed by approved intercompany lending agreements with the Parent that provide for additional capacity of $70.5 million as of December 31, 2018, based on restrictions in these agreements that limit borrowings to 10% of the admitted assets of the Indiana Subsidiaries. For additional restrictions on the Parent's debt, see Note 10. "Indebtedness" in this Form 10-K. Insurance Subsidiaries Dividend Restrictions As noted above, the restriction on our net assets and retained earnings is predominantly driven by our Insurance Subsidiaries' ability to pay dividends to the Parent under applicable laws and regulations. Under the insurance laws of the domiciliary states of the Insurance Subsidiaries, New Jersey, Indiana, and New York, an insurer can potentially make an ordinary dividend payment if its statutory surplus following such dividend is reasonable in relation to its outstanding liabilities, is adequate to its financial needs, and the dividend does not exceed the insurer's unassigned surplus. In general, New Jersey defines an ordinary dividend as a dividend whose fair market value, together with other dividends made within the preceding 12 months, is less than the greater of 10% of the insurer's statutory surplus as of the preceding December 31, or the insurer's net income (excluding capital gains) for the 12-month period ending on the preceding December 31. Indiana's ordinary dividend calculation is consistent with New Jersey's, except that it does not exclude capital gains from net income. In general, New York defines an ordinary dividend as a dividend whose fair market value, together with other dividends made within the preceding 12 months, is less than the lesser of 10% of the insurer's statutory surplus, or 100% of adjusted net investment income. New Jersey and Indiana require notice of the declaration of any ordinary dividend distribution. During the notice period, the relevant state regulatory authority may disallow all or part of the proposed dividend if it determines that the dividend is not appropriate given the above considerations. New York does not require notice of ordinary dividends. Dividend payments exceeding ordinary dividends are referred to as extraordinary dividends and require review and approval by the applicable domiciliary insurance regulatory authority prior to payment. The table below provides the following information: (i) quantitative data regarding all Insurance Subsidiaries' dividends paid to the Parent in 2018 for debt service, shareholder dividends, and general operating purposes; and (ii) the maximum ordinary dividends that can be paid to the Parent by the Insurance Subsidiaries in 2019, based on the 2018 statutory financial statements.
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Quarterly Financial Information |
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Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Quarterly Financial Information | Quarterly Financial Information
1Results for the fourth quarter of 2017 include the impact of the $20.2 million write off of deferred tax assets required with the implementation of Tax Reform. See Note 13. "Federal Income Taxes" above for additional information. 2Effective January 1, 2018, changes in unrealized gains and losses on our equity portfolio are recognized in income through "Net unrealized losses on equity securities" on our Consolidated Statements of Income, as a result of our adoption of ASU 2016-01. See Note 3. "Adoption of Accounting Pronouncements" above. The addition of all quarters may not agree to annual amounts on the Financial Statements due to rounding. |
Schedule I - Summary of Investments - Other Than Investments in Related Parties |
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SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule I - Summary of Investments- Other than Investments in Related Parties |
See accompanying Report of Independent Registered Public Accounting Firm in Item 8. "Financial Statements and Supplementary Data." of this Form 10-K. |
Schedule II - Parent Corporation Finanical Statements |
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Condensed Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule II- Parent Corporation Financial Statements | SCHEDULE II SELECTIVE INSURANCE GROUP, INC. (Parent Corporation) Balance Sheets
See accompanying Report of Independent Registered Public Accounting Firm. Information should be read in conjunction with the Notes to Consolidated Financial Statements of Selective Insurance Group, Inc. and its subsidiaries. Both items are in Item 8. “Financial Statements and Supplementary Data.” of this Form 10-K. SCHEDULE II (continued) SELECTIVE INSURANCE GROUP, INC. (Parent Corporation) Statements of Income
See accompanying Report of Independent Registered Public Accounting Firm. Information should be read in conjunction with the Notes to Consolidated Financial Statements of Selective Insurance Group, Inc. and its subsidiaries. Both items are in Item 8. “Financial Statements and Supplementary Data.” of this Form 10-K. SCHEDULE II (continued) SELECTIVE INSURANCE GROUP, INC. (Parent Corporation) Statements of Cash Flows
See accompanying Report of Independent Registered Public Accounting Firm. Information should be read in conjunction with the Notes to Consolidated Financial Statements of Selective Insurance Group, Inc. and its subsidiaries. Both items are in Item 8. “Financial Statements and Supplementary Data.” of this Form 10-K. |
Schedule III - Supplementary Insurance Information |
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SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule III- Supplementary Insurance Information |
1Includes “Net investment income earned” and “Total net realized and unrealized (losses) gains” on the Consolidated Statements of Income. 2“Other operating expenses” of $321,880 reconciles to the Consolidated Statements of Income as follows:
See accompanying Report of Independent Registered Public Accounting Firm in Item 8. "Financial Statements and Supplementary Data." of this Form 10-K. Year ended December 31, 2017
1Includes “Net investment income earned” and “Total net realized and unrealized (losses) gains” on the Consolidated Statements of Income. 2“Other operating expenses” of $322,381 reconciles to the Consolidated Statements of Income as follows:
See accompanying Report of Independent Registered Public Accounting Firm in Item 8. "Financial Statements and Supplementary Data." of this Form 10-K. SCHEDULE III (continued) SELECTIVE INSURANCE GROUP, INC. AND CONSOLIDATED SUBSIDIARIES SUPPLEMENTARY INSURANCE INFORMATION Year ended December 31, 2016
1Includes “Net investment income earned” and “Total net realized and unrealized (losses) gains” on the Consolidated Statements of Income. 2“Other operating expenses” of $312,514 reconciles to the Consolidated Statements of Income as follows:
See accompanying Report of Independent Registered Public Accounting Firm in Item 8. "Financial Statements and Supplementary Data." of this Form 10-K. |
Schedule IV - Reinsurance |
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SEC Schedule, 12-17, Insurance Companies, Reinsurance [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule IV - Reinsurance |
See accompanying Report of Independent Registered Public Accounting Firm in Item 8. "Financial Statements and Supplementary Data." of this Form 10-K. |
Schedule V - Allowance for Uncollectible Premiums and Other Receivables |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule V - Allowance for Uncollectible Premiums and Other Receivables |
See accompanying Report of Independent Registered Public Accounting Firm in Item 8. "Financial Statements and Supplementary Data." of this Form 10-K. |
Summary of Significant Accounting Policies (Policies) |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Principles of Consolidation | Principles of Consolidation The accompanying consolidated financial statements (“Financial Statements”) include the accounts of the Parent and its subsidiaries, and have been prepared in conformity with: (i) U.S. generally accepted accounting principles ("GAAP"); and (ii) the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). All significant intercompany accounts and transactions are eliminated in consolidation. |
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Use of Estimates | Use of Estimates The preparation of our Financial Statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported financial statement balances, as well as the disclosure of contingent assets and liabilities. Actual results could differ from those estimates. |
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Reclassifications | Reclassifications Certain amounts in our prior years' Financial Statements and related notes have been reclassified to conform to the 2018 presentation. Specifically, we reclassified restricted cash balances related to our participation in the National Flood Insurance Program ("NFIP") from other assets in our consolidated balance sheet into a separate line item on the face of that statement. Additionally, refer to Note 3. "Adoption of Accounting Pronouncements" below for a discussion of the retroactive restatements that are included in these financial statements in relation to the adoption of new accounting pronouncements for the treatment of restricted cash and distributions from equity method investments on the Consolidated Statements of Cash Flows. |
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Investments | Investments Portfolio Composition and Presentation in the Consolidated Balance Sheets Our investment portfolio is primarily comprised of fixed income securities, which represent approximately 89% of our invested assets. We also hold equity securities, short-term investments, and other investments. A description of our portfolio holdings, and the related presentation in our Consolidated Balance Sheets, is provided below. Fixed Income Portfolio We hold the following types of securities in our fixed income securities portfolio:
We have designated approximately 99% of our fixed income securities portfolio as available-for-sale ("AFS"), with the remaining 1% being designated as held-to-maturity ("HTM"), as we have the ability and positive intent to hold these securities to maturity. Our AFS securities are reported at fair value in our consolidated balance sheets, with unrealized gains or losses recognized in accumulated other comprehensive income (loss) ("AOCI"), net of tax. HTM securities are carried at either: (i) amortized cost; or (ii) market value at the date of transfer into the HTM category, adjusted for subsequent amortization. After-tax unrealized gains and losses on securities that were transferred into an HTM designation from an AFS designation, are also included in AOCI. The amortized cost of fixed income securities is adjusted for the amortization of premiums and the accretion of discounts over the expected life of the security using the effective yield method. Callable debt securities held at a premium are amortized to the earliest call date. Premiums and discounts arising from the purchase of RMBS, CMBS, CLOs and other ABS are amortized over the expected life of the security based on future principal payments, giving additional consideration to prepayments. These prepayments are estimated based on historical and projected cash flows. Prepayment assumptions are reviewed quarterly and adjusted to reflect actual prepayments and changes in expectations. Future amortization of any premium and/or discount is adjusted to reflect the revised assumptions. Other Portfolio Holdings Equity securities may include common and non-redeemable preferred stocks. Equity securities with readily determinable fair values are carried at fair value. Certain equity securities without readily determinable fair values are carried at net asset value ("NAV") as a practical expedient. Short-term investments may include certain money market instruments, savings accounts, commercial paper, and debt issues purchased with a maturity of less than one year. We also enter into reverse repurchase agreements that are included in short-term investments. These loans are fully collateralized with high quality, readily marketable instruments at a minimum of 102% of the loan principal. At maturity, we receive principal and interest income on these agreements. All short-term investments are carried at cost, which approximates fair value. Other investments may include alternative investments and other securities. Alternative investments are accounted for using the equity method, with income typically recognized on a one-quarter lag. Other securities are primarily comprised of tax credit investments and equity securities without readily determinable fair values that are not carried at NAV as a practical expedient. These equity securities are carried at cost. Accounting for our tax credit investments is dependent on the type of credit we have purchased, as follows:
For federal tax credits accounted for under the equity method, we use the deferral method for recognizing the benefit of the tax credit with the related deferred revenue being recognized in our Consolidated Income Statement as a component of "Federal income tax expense" proportionately over the life of the investment. We evaluate the alternative investments and tax credit investments included in our other investments portfolio to determine whether those investments are variable interest entities ("VIEs") and if so, whether consolidation is required. A VIE is an entity that either has equity investors that lack certain essential characteristics of a controlling financial interest or lack sufficient funds to finance its own activities without financial support provided by other entities. We consider several significant factors in determining if our investments are VIEs and if we are the primary beneficiary, including whether we have: (i) the power to direct activities of the VIE; (ii) the ability to remove the decision maker of the VIE; (iii) the ability to participate in making decisions that are significant to the VIE; and (iv) the obligation to absorb losses and the right to receive benefits that could potentially be significant to the VIE. We have reviewed our alternative and tax credit investments and have concluded that they are VIEs, but that we are not the primary beneficiary and therefore, consolidation is not required. Presentation in the Consolidated Statements of Income Net investment income earned on our Consolidated Statements of Income include the following:
Income related to federal tax credits (either low income housing tax credits or other federal credits) is recorded in our Consolidated Statements of Income as a component of “Federal income tax expense” proportionately over the life of the investment. Net realized and unrealized gains and losses on our Consolidated Statements of Income include the following:
On a quarterly basis, we review our investment portfolio for impairments that are other than temporary. The following provides information on this analysis for our fixed income securities and short-term investments, and our other investments. OTTI Charges on Fixed Income Securities and Short-Term Investments We review our fixed income securities and short-term investments that are in an unrealized loss position to determine: (i) if we have the intent to sell the security; (ii) if it is more likely than not that we will be required to sell the security before its anticipated recovery; (iii) if the decline is other than interest-rate related; and (iv) if the decline is other than temporary. Broad changes in the overall market or interest rate environment generally will not lead to a write down. If we determine that we have either the intent or requirement to sell the security, we write down its amortized cost to its fair value through an OTTI charge to earnings. If we do not have either the intent or requirement to sell the security, our evaluation for OTTI may include, but is not limited to, evaluation of the following factors:
To determine if an impairment is other than temporary, we perform assessments that may include, but are not limited to, a discounted cash flow analysis ("DCF") to determine the security's present value of future cash flows. This analysis is also performed on all previously-impaired debt securities that continue to be held by us and all RMBS, CMBS, CLOs and ABS that were not of high credit quality at the date of purchase. Any shortfall in the expected present value of the future cash flows, based on the DCF, from the amortized cost basis of a security is considered a “credit impairment,” with the remaining decline in fair value of a security considered a “non-credit impairment.” Credit impairments are charged to earnings as a component of realized losses, while non-credit impairments are recorded to other comprehensive income ("OCI") as a component of unrealized losses. The discount rate we use in a DCF is the effective interest rate implicit in the security at the date of acquisition for those RMBS, CMBS, CLOs and other ABS that were not of high credit quality at acquisition. For all other securities, we use a discount rate that equals the current yield, excluding the impact of previous OTTI charges, used to accrete the beneficial interest. DCFs may include, but are not necessarily limited to: (i) generating cash flows for each tranche considering tranche-specific data, market data, and other pertinent information, such as the historical performance of the underlying collateral, including net operating income generated by underlying properties, conditional default rate assumptions, loan loss severity assumptions, consensus projections, prepayment projections, and actual pool and collateral information; (ii) identifying applicable benchmark yields; and (iii) applying market-based tranche specific spreads to determine an appropriate yield by incorporating collateral performance, tranche-level attributes, trades, bids, and offers. Non-redeemable preferred stocks that are classified as fixed income securities are evaluated using the OTTI method described above unless the security is below investment grade. In this situation, we would determine: (i) if we do not intend to hold the security to its forecasted recovery; or (ii) if the decline is other than temporary, which includes declines driven by market volatility for which we cannot assert recovery in the near term. If we determine either that we do not intend to hold the security, or the decline is other than temporary, we write down the security's cost to its fair value through an OTTI charge to earnings. OTTI Charges on Other Investments Our evaluation for OTTI of an alternative investment may include, but is not limited to, conversations with the management of the alternative investment concerning the following:
Our evaluation for OTTI of our other investments (tax credits and equity securities without a readily determinable fair value for which NAV is not used as a practical expedient) include a qualitative assessment of impairment indicators, which include, but are not limited to, the following:
If there is a decline in the fair value of an alternative or other investment that we do not intend to hold, or if we determine the decline is other than temporary, we write down the carry value of the investment through an OTTI charge to earnings. |
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Fair Value of Financial Instruments | Fair Values of Financial Instruments Assets The fair values of our investments are generated using various valuation techniques and are placed into the fair value hierarchy considering the following: (i) the highest priority is given to quoted prices in active markets for identical assets (Level 1); (ii) the next highest priority is given to quoted prices in markets that are not active or inputs that are observable either directly or indirectly, including quoted prices for similar assets in markets that are not active and other inputs that can be derived principally from, or corroborated by, observable market data for substantially the full term of the assets (Level 2); and (iii) the lowest priority is given to unobservable inputs supported by little or no market activity and that reflect our assumptions about the exit price, including assumptions that market participants would use in pricing the asset (Level 3). An asset’s classification within the fair value hierarchy is based on the lowest level of significant input to its valuation. Transfers between levels in the fair value hierarchy are recognized at the end of the reporting period. The techniques used to value our financial assets are as follows: Level 1 Pricing
Level 2 Pricing We utilize a market approach for our Level 2 securities, using primarily matrix pricing models prepared by external pricing services. Matrix pricing models use mathematical techniques to value debt securities by relying on the securities' relationship to other benchmark quoted securities, and not relying exclusively on quoted prices for specific securities, as the specific securities are not always frequently traded. As a matter of policy, we consistently use one pricing service as our primary source and secondary pricing services if prices are not available from the primary pricing service. Fixed income securities portfolio pricing is reviewed for reasonableness in the following ways: (i) comparing our pricing to other third-party pricing services as well as benchmark indexed pricing; (ii) comparing fair value fluctuations between months for reasonableness; and (iii) reviewing stale prices. If further analysis is needed, a challenge is sent to the pricing service for review and confirmation of the price. Further information on our Level 2 asset pricing is included in the following table:
Level 3 Pricing Less than 1% of our portfolio cannot be priced using our primary or secondary pricing service. At times, we may use valuations performed by the issuer or non-binding broker quotes to determine the fair value of these securities. We internally review these fair value measurements for reasonableness. This review typically includes an analysis of price fluctuations between months with variances over established thresholds being analyzed further. Liabilities The techniques used to value our notes payable are as follows: Level 1 Pricing
Level 2 Pricing
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Allowance for Uncollectible Accounts | Allowance for Uncollectible Accounts We estimate an allowance for uncollectible accounts on our premiums receivable. This allowance is based on historical write-off percentages adjusted for the effects of current and anticipated trends. An account is charged off when we believe it is probable that we will not collect a receivable. In making this determination, we consider information obtained from our efforts to collect amounts due directly or through collection agencies. |
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Share-Based Compensation | Share-Based Compensation Share-based compensation consists of all share-based payment transactions in which an entity acquires goods or services by issuing (or offering to issue) its shares, share units, share options, or other equity instruments. The cost resulting from all share-based payment transactions are recognized in the Financial Statements based on the fair value of both equity and liability awards. The fair value is measured at grant date for equity awards, whereas the fair value for liability awards are remeasured at each reporting period. The fair value of both equity and liability awards is recognized over the requisite service period. The requisite service period is typically the lesser of the vesting period or the period of time from the grant date to the date of retirement eligibility. The expense recognized for share-based awards, which, in some cases, contain performance criteria, is based on the number of shares or units expected to be issued at the end of the performance period. We repurchase the Parent’s stock from our employees in connection with tax withholding obligations, as permitted under our stock-based compensation plans. This activity is disclosed in our Consolidated Statements of Stockholders' Equity. |
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Reinsurance | Reinsurance Reinsurance recoverable represents estimates of amounts that will be recovered from reinsurers under our various treaties. Generally, amounts recoverable from reinsurers are recognized as assets at the same time and in a manner consistent with the paid and unpaid losses associated with the reinsured policies. We require collateral to secure reinsurance recoverables primarily from our reinsurance carriers that are not authorized, otherwise approved, or certified to do business in one or more of our ten insurance subsidiaries' domiciliary states. Our ten insurance subsidiaries are collectively referred to as the "Insurance Subsidiaries." This collateral is typically in the form of a letter of credit or cash. An allowance for estimated uncollectible reinsurance is recorded based on an evaluation of balances due from reinsurers and other available information, such as each reinsurer's credit rating from A.M. Best Company ("A.M. Best") or Standard & Poor's Rating Services ("S&P"). We charge off reinsurance recoverables on paid losses when it becomes probable that we will not collect the balance. |
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Property and Equipment | Property and Equipment Property and equipment used in operations, including certain costs incurred to develop or obtain computer software for internal use, are capitalized and carried at cost less accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets. The following estimated useful lives can be considered as general guidelines:
We recorded depreciation expense of $19.5 million, $17.8 million, and $17.4 million for 2018, 2017, and 2016, respectively. |
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Deferred Policy Acquisition Costs | Deferred Policy Acquisition Costs Deferred policy acquisition costs are limited to costs directly related to the successful acquisition of insurance contracts. Costs meeting this definition typically include, among other things, sales commissions paid to our distribution partners, premium taxes, and the portion of employee salaries and benefits directly related to time spent on acquired contracts. These costs are deferred and amortized over the life of the contracts. Accounting guidance requires a premium deficiency analysis to be performed at the level an entity acquires, services, and measures the profitability of its insurance contracts. We currently perform three premium deficiency analyses for our insurance operations, consistent with our reportable segments of Standard Commercial Lines, Standard Personal Lines, and E&S Lines. A combined ratio of over 100% does not necessarily indicate a premium deficiency, as any year's combined ratio includes a portion of underwriting expenses that are expensed at policy inception and therefore are not covered by the remaining unearned premium. In addition, investment income is not contemplated in the combined ratio calculation. There were no premium deficiencies for any of the reported years, as the sum of the anticipated loss and loss expense, unamortized acquisition costs, policyholder dividends, and other expenses for each segment did not exceed that segment’s related unearned premium and anticipated investment income. The investment yields assumed in the premium deficiency assessment for each reporting period, which were based on our actual average investment yield before tax as of the September 30 calculation date, were 3.3% for 2018, 2.9% for 2017, and 2.4% for 2016. |
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Goodwill | Goodwill Goodwill results from business acquisitions where the cost of assets and liabilities acquired exceeds the fair value of those assets and liabilities. A quantitative goodwill impairment analysis is performed if our quarterly qualitative analysis indicates that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. Goodwill is allocated to the reporting units for purposes of these analyses. Based on our analysis at December 31, 2018, goodwill was not impaired. |
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Reserve for Loss and Loss Expense | Reserve for Loss and Loss Expense Reserves for loss and loss expense are comprised of both case reserves on individual claims and reserves for claims incurred but not reported ("IBNR"). Case reserves result from claims that have been reported to one or more of our Insurance Subsidiaries, and are estimated at the amount of the expected ultimate payment. IBNR reserves are established at more aggregated levels than case basis reserves, and include: (i) reserves on IBNR claims; and (ii) provisions for future emergence on known or reopened claims. IBNR reserves are established based on the results of the Insurance Subsidiaries’ internal reserve analysis, supplemented with other internal and external information. The internal reserve analysis is performed quarterly, and relies upon generally accepted actuarial techniques. Such techniques assume that past experience, adjusted for the effects of current developments and anticipated trends, are an appropriate basis for predicting future events. Our analyses rely upon historical paid and case loss and loss expense experience organized by line of business, accident year, and maturity (i.e., “triangles”). Standard actuarial projection methods are applied to this history, producing a set of estimated ultimate loss and loss expenses. Ultimate loss and loss expenses are selected from the various methods, considering the strengths and weaknesses of the methods as they apply to the specific line and accident year. Certain types of exposures do not lend themselves to standard actuarial methods. Examples of these are:
The selected ultimate loss and loss expenses are translated into indicated IBNR reserves, which are then compared to the recorded IBNR reserves. Management's judgment is applied in determining any required adjustments to IBNR and the resulting adjustments are then recorded and assigned or allocated to accident year using the results of the actuarial analysis. While the reserve analysis is the primary basis for determining the recorded IBNR reserves, other internal and external factors are considered. Internal factors include: (i) supplemental data regarding claims reporting and settlement trends; (ii) exposure estimates for reported claims, along with recent development on those estimates with respect to individual large claims and the aggregate of all claims; (iii) the rate at which new large or complex claims are being reported; and (iv) additional trends observed by claims personnel or reported to them by defense counsel. External factors considered include: (i) legislative enactments; (ii) judicial decisions; (iii) legal developments in the determination of liability and the imposition of damages; (iv) social inflation and heightened awareness of sources of liability; and (v) trends in general economic conditions, including the effects of inflation. Loss reserves are estimates, and as such, we also consider a range of possible loss and loss expense reserve estimates. This range is determined at the beginning of each year, using prior year-end data, and reflects the fact that there is no single precise method for estimating the required reserves, due to the many factors that may influence the amounts ultimately paid. Considering the reserve range along with all of the items described above, as well as current market conditions, IBNR estimates are then established and recorded. The combination of the IBNR estimates along with the case reserve estimates on individual claims results in our total reserves for loss and loss expense. These reserves are expected to be sufficient for settling loss and loss expense obligations under our policies on unpaid claims, including changes in the volume of business written, claims frequency and severity, the mix of business, claims processing, and other items that management expects to affect our ultimate settlement of loss and loss expense. However, the ultimate claim settlements may be higher or lower than reserves established. As our experience emerges and other information develops, we revise our reserve estimates accordingly. The changes in these estimates, resulting from the continuous review process and the differences between estimates and ultimate payments, are reflected in the Consolidated Statements of Income for the period in which such estimates are changed. The associated impacts may be material to the results of operations in future periods. We do not discount to present value that portion of our loss and loss expense reserves expected to be paid in future periods. Our loss and loss expense reserves implicitly include anticipated recoveries for salvage and subrogation claims. Claims are counted at the occurrence, line of business, and policy level. For example, if a single occurrence (e.g. an auto accident) leads to a claim under an auto and an associated umbrella policy, they are each counted separately. Conversely, multiple claimants under the same occurrence/line/policy would contribute only a single count. The claim counts provided are on a reported basis. A claim is considered reported when a reserve is established or a payment is made. Therefore, claims closed without payment are included in the count as long as there was an associated case reserve at some point in its life cycle. We also write a small amount of assumed reinsurance. Currently, this business is limited to our share of certain involuntary pools. As the associated claims are not processed by us, they are not captured within our claims system. Therefore, the claim counts reported exclude this business. (m) |
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Revenue Recognition | Revenue Recognition The Insurance Subsidiaries' net premiums written (“NPW”) include direct insurance policy writings, plus reinsurance assumed and estimates of premiums earned but unbilled on the workers compensation and general liability lines of business, less reinsurance ceded. The estimated premium on the workers compensation and general liability lines is referred to as audit premium. We estimate this premium, as it is anticipated to be either billed or returned on policies subsequent to expiration based on exposure levels (i.e. payroll or sales). Audit premium is based on historical trends adjusted for the uncertainty of future economic conditions. Economic instability could ultimately impact our estimates and assumptions, and changes in our estimate may be material to the results of operations in future periods. Premiums written are recognized as revenue over the period that coverage is provided using the semi-monthly pro-rata method. Unearned premiums and prepaid reinsurance premiums represent that portion of premiums written that are applicable to the unexpired terms of policies in force. |
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Dividends to Policyholders | Dividends to Policyholders We establish reserves for dividends to policyholders on certain policies, most significantly workers compensation policies. These dividends are based on the policyholders' loss experience. Dividend reserves are established based on past experience, adjusted for the effects of current developments and anticipated trends. The expense for these dividends is recognized over a period that begins at policy inception and ends with the payment of the dividend. We report these dividends within "Other insurance expenses" on the Consolidated Statements of Income. We do not issue policies that entitle the policyholder to participate in the earnings or surplus of our Insurance Subsidiaries. |
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Federal Income Tax | Federal Income Tax We use the asset and liability method of accounting for income taxes. Current federal income taxes are recognized for the estimated taxes payable or refundable on tax returns for the current year. Deferred federal income taxes arise from the recognition of temporary differences between financial statement carrying amounts and the tax basis of assets and liabilities. We consider all evidence, both positive and negative, with respect to our federal tax loss carryback availability, expected levels of pre-tax financial statement income, and federal taxable income, when evaluating whether the temporary differences will be realized. In projecting future taxable income, we begin with budgeted pre-tax income adjusted for estimated non-taxable items. The assumptions about future taxable income require significant judgment and are consistent with the plans and estimates we use to manage our businesses. A valuation allowance is established when it is more likely than not that some portion of the deferred tax asset will not be realized. A liability for uncertain tax positions is recorded when it is more likely than not that a tax position will not be sustained upon examination by taxing authorities. The effect of a change in tax rates is recognized in the period of enactment. If we were to be levied interest and penalties by the Internal Revenue Service (“IRS”), the interest would be recognized as “Interest expense” and the penalties would be recognized as either “Other insurance expenses” or "Corporate expenses" on the Consolidated Statements of Income depending on the nature of what caused the occurrence of such an item. |
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Leases | Leases We have various operating leases for office space, equipment, and fleet vehicles. Rental expense for such leases is recorded on a straight-line basis over the lease term. If a lease has a fixed and determinable escalation clause, or periods of rent holidays, the difference between rental expense and rent paid is included in "Other liabilities" in the Consolidated Balance Sheets. In addition, we have various capital leases for computer hardware and software. These leases are accounted for as an acquisition of an asset with a corresponding obligation. Depreciation is calculated using the straight-line method over the shorter of the estimated useful life of the asset or the lease term. |
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Pension | Pension Our pension and post-retirement life benefit obligations and related costs are calculated using actuarial methods, within the framework of GAAP. Our pension benefit obligation is determined as the actuarial present value of the vested benefits to which the employee is currently entitled, based on the average life expectancy of the employee. Our funding policy provides that payments to our pension trust shall be equal to the minimum funding requirements of the Employee Retirement Income Security Act of 1974 ("ERISA"), plus additional amounts that the Board of Directors of Selective Insurance Company of America (“SICA”) may approve from time to time. Two key assumptions, the discount rate and the expected return on plan assets, are important elements of expense and/or liability measurement. We evaluate these key assumptions annually unless facts indicate that a more frequent review is required. The discount rate enables us to state expected future cash flows at their present value on the measurement date. The purpose of the discount rate is to determine the interest rates inherent in the price at which pension benefits could be effectively settled. Our discount rate selection is based on high-quality, long-term corporate bonds. To determine the expected long-term rate of return on the plan assets, we consider the current and expected asset allocation, as well as historical and expected returns on each plan asset class. Other assumptions involve demographic factors such as retirement age and mortality. |
Summary of Significant Accounting Policies (Tables) |
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Dec. 31, 2018 | ||||||||||||||||||||||||||||
Accounting Policies [Abstract] | ||||||||||||||||||||||||||||
Estimated Useful Life for Property and Equipment |
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Adoption of Accounting Pronouncements Adoption of Accounting Pronouncements (Tables) |
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Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block] |
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Statements of Cash Flow (Tables) |
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Schedule of Cash Flow, Supplemental Disclosures |
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Schedule of Cash and Cash Equivalents |
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Investments (Tables) |
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Investment [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Unrealized Gains On Investments |
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Schedule of Held-to-maturity Securities |
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Schedule of Available For Sale Securities |
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Schedule of Fair Value and Gross Pre-Tax Net Unrealized/Unrecognized Loss of Securities by Length of Time |
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Schedule of Investments Classified by Contractual Maturity Date |
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Schedule of Other Investment Portfolio by Strategy and the Remaining Commitment Amount Associated With Each Strategy |
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Schedule of Aggregated Summarized Balance Sheet Financial Information For Partnerships In Our Alternative Investment Portfolio |
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Schedule of Aggregated Summarized Income Statement Financial Information For Partnerships In Our Alternative Investment Portfolio |
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Schedule Of Securities Pledged As Collateral |
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Schedule of Components of Pre-Tax Net Investment Income Earned |
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Schedule of OTTI by Asset Type |
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Components of Net Realized and Unrealized Gains (Losses) |
1Includes unrealized holding gains (losses) of: (i) $(3.1) million on equity securities remaining in our portfolio as of December 31, 2018; and (ii) $(26.3) million on equity securities sold in 2018. |
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Schedule of Components of Net Realized Gains Excluding OTTI Charges |
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Comprehensive Income (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Components of Comprehensive Income-Gross and Net of Tax |
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Schedule of Components of Accumulated Other Comprehensive Income |
1 Upon adoption of ASU 2016-01 and ASU 2018-02 in the first quarter of 2018, we recognized a $25.0 million cumulative-effect adjustment to the opening balance of AOCI, which represents the after-tax net unrealized gain on our equity portfolio as of December 31, 2017 and the one-time reclassification from AOCI to retained earnings for the stranded tax assets that were created in AOCI from the enactment of Tax Reform. See Note 3. "Adoption of Accounting Pronouncements" above for additional information. |
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Schedule of Reclassification out of Accumulated Other Comprehensive Income |
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Fair Value Measurements (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Carrying Amounts and Estimated Fair Values of Financial Instruments |
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Schedule of Quantitative Disclosures of our Financial Assets that were Measured at Fair Value |
1There were no transfers of securities between Level 1 and Level 2. 2In accordance with ASU 2015-07, investments amounting to $37.3 million and $23.7 million at December 31, 2018 and December 31, 2017, respectively, were measured at fair value using the net asset value per share (or its practical expedient) and have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to total assets measured at fair value. |
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Schedule of Summary of the Changes in Fair Value of Securities Using Level 3 Inputs |
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Schedule of Quantitative Information of our Financial Assets and Liabilities that were Disclosed at Fair Value |
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Reinsurance (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reinsurance Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Total Reinsurance Balances Segregated By Reinsurer |
1Considered to have minimal risk of default. 2Includes letters of credit, trust funds, and funds held against reinsurance recoverables. |
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List Of Direct, Assumed, And Ceded Reinsurance Amounts |
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Schedule of Ceded Premiums and Losses Related to Flood Operations |
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Reserve for Loss and Loss Expense (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Insurance Loss Reserves [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Roll Forward of Reserve for Loss and Loss Expense |
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Schedule of (Favorable)/ Unfavorable Prior Year Development |
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Schedule of Exposure to Various Asbestos and Environmental Claims |
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Schedule of Roll Forward of Gross and Net Asbestos and Environmental Incurred Losses and Loss Expenses and Related Reserves |
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Schedule of Short-duration Insurance Contracts, Claims Development |
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Schedule of Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability |
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Schedule of Short-duration Insurance Contracts, Schedule of Historical Claims Duration |
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Indebtedness (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Long-term Debt Instruments |
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Segment Information (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Revenue from Continuing Operations By Segment |
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Schedule of Income from Continuing Operations before and after Federal Income Tax |
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Schedule of Reconciliation of Segment Results to Income From Continuing Operations, Before Federal Income Tax |
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Earnings Per Share (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Reconciliation of Earnings Per Share |
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Federal Income Taxes (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Reconciliation of Federal Income Tax on Income at the Corporate Rate to the Effective Tax Rate |
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Schedule of Deferred Tax Assets and Liabilities |
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Retirement Plans (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Funded Status Of Retirement Income Plan And Retirement Life Plan |
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Schedule of Amounts Recognized in Consolidated Balance Sheet |
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Schedule of Amounts recognized in Accumulated Other than Comprehensive Income |
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Schedule of Other Information as of December 31 |
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Schedule of Components Of Net Periodic Benefit Cost And Other Amounts Recognized In Other Comprehensive Income |
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Schedule Of Weighted- Average Expense and Liability Assumptions |
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Schedule of Allocation of Plan Assets |
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Schedule of Quantitative Disclosures of our Financial Assets that were Measured at Fair Value |
1There were no transfers of securities between Level 1 and Level 2. 2In accordance with ASU 2015-07, investments amounting to $37.3 million and $23.7 million at December 31, 2018 and December 31, 2017, respectively, were measured at fair value using the net asset value per share (or its practical expedient) and have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to total assets measured at fair value. |
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Schedule of Expected Benefit Payments | Payments
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Retirement Income Plan [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Quantitative Disclosures of our Financial Assets that were Measured at Fair Value |
1In accordance with ASU 2015-07, certain investments that are measured at fair value using the net asset value per share (or its practical expedient) have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to total Pension Plan invested assets. |
Share-Based Payments (Tables) |
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Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Share-Based Compensation Plan Approval |
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Schedule of Types of Share-Based Payments Issued |
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Schedule of Share-Based Compensation Shares Authorized and Available for Issuance |
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Schedule of Share-Based Compensation Retired Plans |
1Awards outstanding under the 2005 Stock Plan consisted of 47,268 shares deferred by our non-employee directors and 126,735 stock options. |
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Schedule of Summary of Restricted Stock Units Transactions under Share-Based Payment Plans |
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Schedule of Summary of Stock Option Transactions under Share Based Payment Plans |
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Schedule of Share-Based Compensation ESPP and ASPP Shares Granted |
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Schedule of Weighted Average Assumptions for Employee Stock Purchase Plan |
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Schedule of Weighted-Average Fair Value of Options and Stock Per Share |
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Schedule of Compensation Cost for Share-based Payment Arrangements |
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Commitments and Contingencies (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Future Minimum Rental Commitments For Non-Cancelable Leases |
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Statutory Financial Information, Capital Requirements, and Restrictions on Dividends and Transfers of Funds (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Insurance [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Insurance Subsidiaries Statutory Surplus Data |
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Schedule of Insurance Subsidiaries Dividend Paid To Parent |
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Quarterly Financial Information (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Quarterly Financial Information |
1Results for the fourth quarter of 2017 include the impact of the $20.2 million write off of deferred tax assets required with the implementation of Tax Reform. See Note 13. "Federal Income Taxes" above for additional information. 2Effective January 1, 2018, changes in unrealized gains and losses on our equity portfolio are recognized in income through "Net unrealized losses on equity securities" on our Consolidated Statements of Income, as a result of our adoption of ASU 2016-01. See Note 3. "Adoption of Accounting Pronouncements" above. The addition of all quarters may not agree to annual amounts on the Financial Statements due to rounding. |
Summary of Significant Accounting Policies (Narrative) (Details) - USD ($) $ in Millions |
9 Months Ended | 12 Months Ended | ||||
---|---|---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2016 |
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Percent of Portfolio Level 3 Securities | 1.00% | |||||
Percent of Investment Portfolio Comprised of Fixed Income Securities | 89.00% | |||||
Percent of Fixed Income Securities Comprised of AFS | 99.00% | |||||
Percent of Fixed Income Securities Comprised of HTM | 1.00% | |||||
Percent of Loan Principal | 102.00% | |||||
Depreciation expense | $ 19.5 | $ 17.8 | $ 17.4 | |||
Investment yields before tax assumed in premium deficiency assessment | 3.30% | 2.90% | 2.40% |
Summary of Significant Accounting Policies (Property and Equipment) (Details) |
12 Months Ended |
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Dec. 31, 2018 | |
Computer hardware [Member] | |
Property, Plant and Equipment, Estimated Useful Lives | 3 |
Furniture and fixtures [Member] | |
Property, Plant and Equipment, Estimated Useful Lives | 10 |
Maximum [Member] | Computer software [Member] | |
Property, Plant and Equipment, Estimated Useful Lives | 5 |
Maximum [Member] | Software licenses [Member] | |
Property, Plant and Equipment, Estimated Useful Lives | 5 |
Maximum [Member] | Internally developed software [Member] | |
Property, Plant and Equipment, Estimated Useful Lives | 10 |
Maximum [Member] | Building and improvements [Member] | |
Property, Plant and Equipment, Estimated Useful Lives | 40 |
Minimum [Member] | Computer software [Member] | |
Property, Plant and Equipment, Estimated Useful Lives | 3 |
Minimum [Member] | Software licenses [Member] | |
Property, Plant and Equipment, Estimated Useful Lives | 3 |
Minimum [Member] | Internally developed software [Member] | |
Property, Plant and Equipment, Estimated Useful Lives | 5 |
Minimum [Member] | Building and improvements [Member] | |
Property, Plant and Equipment, Estimated Useful Lives | 5 |
Adoption of Accounting Pronouncements Adoption of Accounting Pronouncements (Details) - USD ($) $ in Thousands |
12 Months Ended | ||||
---|---|---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
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New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Undistributed (gains) losses of equity method investments | $ (8,341) | $ (5,362) | $ 318 | ||
Distributions in excess of current year income of equity method investments | 2,924 | 552 | 0 | ||
Increase in other assets | (372) | (2,643) | (4,979) | ||
Net cash provided by operating activities | 454,944 | 379,545 | 329,509 | ||
Distributions from other investments | 28,379 | 21,843 | 24,202 | ||
Net cash used in investing activities | (435,688) | (332,658) | (320,736) | ||
Operating Lease, Right-of-Use Asset | 20,800 | ||||
Operating Lease, Liability | 20,400 | ||||
Finance Lease, Right-of-Use Asset | 900 | ||||
Finance Lease, Liability | 900 | ||||
Previously Reported [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Undistributed (gains) losses of equity method investments | (6,393) | (2,316) | |||
Distributions in excess of current year income of equity method investments | 0 | 0 | |||
Increase in other assets | (9,872) | (30,071) | |||
Net cash provided by operating activities | 370,733 | 301,783 | |||
Distributions from other investments | 23,426 | 26,837 | |||
Net cash used in investing activities | (331,075) | (318,101) | |||
Accounting Standards Update 2016-01 [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Cumulative effect adjustment | 30,726 | 0 | 0 | ||
Accumulated other comprehensive (loss) income [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Cumulative effect adjustment | [1] | 25,019 | |||
Accumulated other comprehensive (loss) income [Member] | Accounting Standards Update 2016-01 [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Cumulative effect adjustment | 30,726 | 0 | 0 | ||
Accumulated other comprehensive (loss) income [Member] | Accounting Standards Update 2018-02 [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Cumulative effect adjustment | (5,707) | 0 | 0 | ||
Retained Earnings [Member] | Accounting Standards Update 2016-01 [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Cumulative effect adjustment | (30,726) | 0 | 0 | ||
Retained Earnings [Member] | Accounting Standards Update 2018-02 [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Cumulative effect adjustment | 5,707 | $ 0 | $ 0 | ||
Retained Earnings [Member] | Accounting Standards Update 2016-02 [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Cumulative effect adjustment | $ (1,000) | ||||
|
Statements of Cash Flow (Cash Flow Supplemental Disclosures) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Interest | $ 23,992 | $ 23,905 | $ 22,098 |
Federal income tax | 29,193 | 62,000 | 46,405 |
Corporate actions related to equity securities | 944 | 4,725 | 3,263 |
Assets acquired under capital lease arrangements | 4,119 | 278 | 3,151 |
Non-cash purchase of property and equipment | 291 | 0 | 78 |
AFS Fixed Income Securities [Member] | |||
Corporate actions related to fixed income securities, AFS | $ 52,277 | $ 22,511 | $ 23,579 |
Statements of Cash Flow Statements of Cash Flow (Cash and Restricted Cash) (Details) - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
---|---|---|---|---|
Supplemental Cash Flow Information [Abstract] | ||||
Cash | $ 505 | $ 534 | ||
Restricted cash | 16,414 | 44,176 | ||
Total cash and restricted cash shown in the Statements of Cash Flows | $ 16,919 | $ 44,710 | $ 37,405 | $ 12,754 |
Investments (Unrealized Gains on Investments) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Net unrealized gains | $ 2,391 | $ 124,679 | $ 64,804 |
Deferred income tax expense | (502) | (44,103) | (22,681) |
Net unrealized gains, net of deferred income tax | 1,889 | 80,576 | 42,123 |
Increase (decrease) in net unrealized gains in OCI, net of deferred income tax | (65,881) | 38,453 | (2,873) |
AFS Fixed Income Securities [Member] | |||
Net unrealized gains | 2,302 | 85,806 | 38,781 |
Equity Securities [Member] | |||
Net unrealized gains | 0 | 38,894 | 25,864 |
Available-for-sale Securities [Member] | |||
Net unrealized gains | 2,302 | 124,700 | 64,645 |
Total HTM Securities [Member] | |||
Net unrealized gains | 89 | (21) | 159 |
Accounting Standards Update 2018-02 [Member] | Investments [Member] | |||
Cumulative effect adjustment | (17,920) | 0 | 0 |
Accounting Standards Update 2018-02 [Member] | Retained Earnings [Member] | |||
Cumulative effect adjustment | 5,707 | 0 | 0 |
Accounting Standards Update 2016-01 [Member] | |||
Cumulative effect adjustment | 30,726 | 0 | 0 |
Accounting Standards Update 2016-01 [Member] | Retained Earnings [Member] | |||
Cumulative effect adjustment | $ (30,726) | $ 0 | $ 0 |
Investments (Held-To-Maturity Securities Disclosure) (Details) - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Amortized Cost | $ 37,021 | $ 42,150 |
Net Unrealized Gains (Losses) | 89 | (21) |
Total HTM fixed income securities carrying value | 37,110 | 42,129 |
Unrecognized Holding Gains | 1,359 | 2,026 |
Unrecognized Holding Losses | (152) | (55) |
Total HTM fixed income securities fair value | 38,317 | 44,100 |
Obligations of States and Political Subdivisions [Member] | ||
Amortized Cost | 17,431 | 25,154 |
Net Unrealized Gains (Losses) | 39 | 84 |
Total HTM fixed income securities carrying value | 17,470 | 25,238 |
Unrecognized Holding Gains | 504 | 1,023 |
Unrecognized Holding Losses | (5) | 0 |
Total HTM fixed income securities fair value | 17,969 | 26,261 |
Corporate Securities [Member] | ||
Amortized Cost | 19,590 | 16,996 |
Net Unrealized Gains (Losses) | 50 | (105) |
Total HTM fixed income securities carrying value | 19,640 | 16,891 |
Unrecognized Holding Gains | 855 | 1,003 |
Unrecognized Holding Losses | (147) | (55) |
Total HTM fixed income securities fair value | $ 20,348 | $ 17,839 |
Investments (Available-For-Sale Securities Disclosure) (Details) - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Debt Securities, Available-for-sale [Line Items] | ||
Cost/Amortized Cost | $ 5,220,527 | |
Unrealized Gains | 130,058 | |
Unrealized Losses | (5,358) | |
Total AFS securities | 5,345,227 | |
AFS Fixed Income Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost/Amortized Cost | $ 5,270,798 | 5,076,716 |
Unrealized Gains | 47,369 | 90,867 |
Unrealized Losses | (45,067) | (5,061) |
Total AFS securities | 5,273,100 | 5,162,522 |
AFS Fixed Income Securities [Member] | U.S. Government and Government Agencies [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost/Amortized Cost | 120,092 | 49,326 |
Unrealized Gains | 1,810 | 647 |
Unrealized Losses | (592) | (233) |
Total AFS securities | 121,310 | 49,740 |
AFS Fixed Income Securities [Member] | Foreign Government [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost/Amortized Cost | 23,202 | 18,040 |
Unrealized Gains | 36 | 526 |
Unrealized Losses | (107) | (11) |
Total AFS securities | 23,131 | 18,555 |
AFS Fixed Income Securities [Member] | Obligations of States and Political Subdivisions [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost/Amortized Cost | 1,121,615 | 1,539,307 |
Unrealized Gains | 19,485 | 44,245 |
Unrealized Losses | (2,631) | (582) |
Total AFS securities | 1,138,469 | 1,582,970 |
AFS Fixed Income Securities [Member] | Corporate Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost/Amortized Cost | 1,639,852 | 1,588,339 |
Unrealized Gains | 5,521 | 30,891 |
Unrealized Losses | (27,965) | (1,762) |
Total AFS securities | 1,617,408 | 1,617,468 |
AFS Fixed Income Securities [Member] | Collateralized Loan Obligations and Other Asset-Backed Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost/Amortized Cost | 720,193 | 789,152 |
Unrealized Gains | 4,112 | 6,508 |
Unrealized Losses | (6,943) | (202) |
Total AFS securities | 717,362 | 795,458 |
AFS Fixed Income Securities [Member] | Commercial Mortgage Backed Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost/Amortized Cost | 527,409 | 382,727 |
Unrealized Gains | 3,417 | 1,563 |
Unrealized Losses | (3,748) | (841) |
Total AFS securities | 527,078 | 383,449 |
AFS Fixed Income Securities [Member] | Residential Mortgage Backed Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost/Amortized Cost | 1,118,435 | 709,825 |
Unrealized Gains | 12,988 | 6,487 |
Unrealized Losses | (3,081) | (1,430) |
Total AFS securities | $ 1,128,342 | 714,882 |
Equity Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost/Amortized Cost | 143,811 | |
Unrealized Gains | 39,191 | |
Unrealized Losses | (297) | |
Total AFS securities | 182,705 | |
Equity Securities [Member] | Common Stock [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost/Amortized Cost | 129,696 | |
Unrealized Gains | 38,287 | |
Unrealized Losses | (226) | |
Total AFS securities | 167,757 | |
Equity Securities [Member] | Nonredeemable Preferred Stock [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost/Amortized Cost | 14,115 | |
Unrealized Gains | 904 | |
Unrealized Losses | (71) | |
Total AFS securities | $ 14,948 |
Investments (Number of Securities in an Unrealized Unrecognized Loss Position) (Details) - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Percentage Decline in Fair Value Percentage of Amortized Cost | 2.00% | 1.00% |
Held-to-maturity Securities, Accumulated Unrecognized Holding Loss | $ 200 | $ 100 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 878,126 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (4,961) | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 35,686 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (397) | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Total Fair Value | 913,812 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | (5,358) | |
AFS Fixed Maturity Securities [Member] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 2,142,433 | 869,566 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (36,948) | (4,664) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 275,174 | 35,686 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (8,119) | (397) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Total Fair Value | 2,417,607 | 905,252 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | (45,067) | (5,061) |
Equity Securities [Member] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 8,560 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (297) | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 0 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Total Fair Value | 8,560 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | (297) | |
U.S. Government and Government Agencies [Member] | AFS Fixed Maturity Securities [Member] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 6,693 | 23,516 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (174) | (233) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 23,163 | 250 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (418) | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Total Fair Value | 29,856 | 23,766 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | (592) | (233) |
Foreign Government [Member] | AFS Fixed Maturity Securities [Member] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 12,208 | 1,481 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (93) | (11) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 1,482 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (14) | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Total Fair Value | 13,690 | 1,481 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | (107) | (11) |
Obligations of States and Political Subdivisions [Member] | AFS Fixed Maturity Securities [Member] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 196,798 | 107,514 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (2,074) | (422) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 42,821 | 14,139 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (557) | (160) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Total Fair Value | 239,619 | 121,653 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | (2,631) | (582) |
Corporate Securities [Member] | AFS Fixed Maturity Securities [Member] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 1,041,952 | 238,326 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (23,649) | (1,744) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 78,953 | 3,228 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (4,316) | (18) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Total Fair Value | 1,120,905 | 241,554 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | (27,965) | (1,762) |
Collateralized Loan Obligations and Other Asset-Backed Securities [Member] | AFS Fixed Maturity Securities [Member] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 516,106 | 74,977 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (6,750) | (196) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 16,800 | 1,655 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (193) | (6) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Total Fair Value | 532,906 | 76,632 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | (6,943) | (202) |
Commercial Mortgage Backed Securities [Member] | AFS Fixed Maturity Securities [Member] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 229,338 | 154,267 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (2,548) | (773) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 66,294 | 5,214 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (1,200) | (68) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Total Fair Value | 295,632 | 159,481 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | (3,748) | (841) |
Residential Mortgage Backed Securities [Member] | AFS Fixed Maturity Securities [Member] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 139,338 | 269,485 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (1,660) | (1,285) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 45,661 | 11,200 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (1,421) | (145) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Total Fair Value | 184,999 | 280,685 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | $ (3,081) | (1,430) |
Common Stock [Member] | Equity Securities [Member] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 4,727 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (226) | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 0 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Total Fair Value | 4,727 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | (226) | |
Nonredeemable Preferred Stock [Member] | Equity Securities [Member] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 3,833 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (71) | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 0 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Total Fair Value | 3,833 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | $ (71) |
Investments (Fixed Maturity Securities by Contractual Maturity) (Details) - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
AFS due in one year or less fair value | $ 188,309 | |
AFS due after one year through five years fair value | 2,040,395 | |
AFS due after five years through 10 years fair value | 2,863,528 | |
AFS due after 10 years fair value | 180,868 | |
Fixed income securities, available-for-sale securities | 5,273,100 | $ 5,162,522 |
HTM due in one year or less carrying value | 13,502 | |
HTM due after one year through five years carrying value | 17,308 | |
HTM due after five years through 10 years carrying value | 6,300 | |
HTM due after 10 years carrying value | 0 | |
Total HTM fixed income securities carrying value | 37,110 | 42,129 |
HTM due in one year or less fair value | 13,693 | |
HTM due after one year through five years fair value | 18,260 | |
HTM due after five years through 10 years fair value | 6,364 | |
HTM due after 10 years fair value | 0 | |
Total HTM fixed income securities fair value | $ 38,317 | $ 44,100 |
Investments (Other Investment Portfolio by Strategy and the Remaining Commitment Amount Associated With Each Strategy) (Details) - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Carrying Value | $ 178,938 | $ 132,268 |
Other Investment Portfolio [Member] | ||
Carrying Value | 178,938 | 132,268 |
Remaining Commitment | 202,270 | 220,999 |
Maximum Exposure to Loss | 381,208 | 353,267 |
Alternative Investments [Member] | ||
Carrying Value | 153,896 | 115,373 |
Remaining Commitment | 202,270 | 220,999 |
Maximum Exposure to Loss | 356,166 | 336,372 |
Private Equity [Member] | Alternative Investments [Member] | ||
Carrying Value | 84,352 | 52,251 |
Remaining Commitment | 93,688 | 99,026 |
Maximum Exposure to Loss | 178,040 | 151,277 |
Private Credit Funds [Member] | Alternative Investments [Member] | ||
Carrying Value | 41,682 | 37,743 |
Remaining Commitment | 81,453 | 94,959 |
Maximum Exposure to Loss | 123,135 | 132,702 |
Real Assets [Member] | Alternative Investments [Member] | ||
Carrying Value | 27,862 | 25,379 |
Remaining Commitment | 27,129 | 27,014 |
Maximum Exposure to Loss | 54,991 | 52,393 |
Other Securities [Member] | ||
Carrying Value | 25,042 | 16,895 |
Remaining Commitment | 0 | 0 |
Maximum Exposure to Loss | $ 25,042 | $ 16,895 |
Investments (Aggregated Balance Sheet Summarized Financial Information for Partnerships in our Alternative Investment Portfolio) (Details) - Investments Accounted For Under The Equity Method [Member] - USD ($) $ in Millions |
Sep. 30, 2018 |
Sep. 30, 2017 |
---|---|---|
Investments | $ 28,292 | $ 21,046 |
Total assets | 30,377 | 22,357 |
Total liabilities | 4,532 | 4,767 |
Partners' capital | $ 25,845 | $ 17,590 |
Investments (Aggregated Income Statement Summarized Financial Information for Partnerships in our Alternative Investment Portfolio) (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | ||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 |
[1] | Sep. 30, 2018 |
Jun. 30, 2018 |
Mar. 31, 2018 |
Dec. 31, 2017 |
[1] | Sep. 30, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2018 |
Dec. 31, 2017 |
Sep. 30, 2017 |
Dec. 31, 2016 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||||
Net investment income earned | $ 54,109 | $ 52,443 | $ 45,553 | $ 43,231 | $ 42,587 | $ 40,446 | $ 41,430 | $ 37,419 | $ 195,336 | $ 161,882 | $ 130,754 | |||||||
Investments Accounted For Under The Equity Method [Member] | ||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||||
Net investment income (loss) | $ 134,000 | $ (143,000) | $ (44,000) | |||||||||||||||
Realized gains | 1,981,000 | 325,000 | 1,374,000 | |||||||||||||||
Net change in unrealized appreciation (depreciation) | 1,303,000 | 2,894,000 | (719,000) | |||||||||||||||
Net Income | $ 3,418,000 | $ 3,076,000 | $ 611,000 | |||||||||||||||
Alternative Investments [Member] | ||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||||
Net investment income earned | $ 17,600 | $ 12,700 | $ 3,100 | |||||||||||||||
|
Investments (Credit Concentration Risk) (Details) |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Investments [Abstract] | ||
Maximum exposure to credit concentration risk of the Company's stockholder's equity other than certain U.S. government agencies | 10.00% | 10.00% |
Investments (Investments Pledged as Collateral) (Details) $ in Millions |
Dec. 31, 2018
USD ($)
|
---|---|
Debt Securities, Available-for-sale [Line Items] | |
Assets Held by Insurance Regulators | $ 26.7 |
Securities pledged as collateral for reinsurance obligations | 155.5 |
U.S. Government and Government Agencies [Member] | |
Debt Securities, Available-for-sale [Line Items] | |
Assets Held by Insurance Regulators | 22.5 |
Securities pledged as collateral for reinsurance obligations | 22.5 |
Obligations of States and Political Subdivisions [Member] | |
Debt Securities, Available-for-sale [Line Items] | |
Federal Home Loan Bank, Advances, General Debt Obligations, Disclosures, Collateral Pledged | 0.0 |
Assets Held by Insurance Regulators | 3.9 |
Securities pledged as collateral for reinsurance obligations | 3.9 |
Corporate Securities [Member] | |
Debt Securities, Available-for-sale [Line Items] | |
Assets Held by Insurance Regulators | 0.3 |
Securities pledged as collateral for reinsurance obligations | 0.3 |
Commercial Mortgage Backed Securities [Member] | |
Debt Securities, Available-for-sale [Line Items] | |
Assets Held by Insurance Regulators | 0.0 |
Securities pledged as collateral for reinsurance obligations | 25.3 |
Residential Mortgage Backed Securities [Member] | |
Debt Securities, Available-for-sale [Line Items] | |
Assets Held by Insurance Regulators | 0.0 |
Securities pledged as collateral for reinsurance obligations | 103.5 |
Federal Home Loan Bank of New York [Member] | |
Debt Securities, Available-for-sale [Line Items] | |
Federal Home Loan Bank, Advances, General Debt Obligations, Disclosures, Collateral Pledged | 63.6 |
Federal Home Loan Bank of New York [Member] | U.S. Government and Government Agencies [Member] | |
Debt Securities, Available-for-sale [Line Items] | |
Federal Home Loan Bank, Advances, General Debt Obligations, Disclosures, Collateral Pledged | 0.0 |
Federal Home Loan Bank of New York [Member] | Corporate Securities [Member] | |
Debt Securities, Available-for-sale [Line Items] | |
Federal Home Loan Bank, Advances, General Debt Obligations, Disclosures, Collateral Pledged | 0.0 |
Federal Home Loan Bank of New York [Member] | Commercial Mortgage Backed Securities [Member] | |
Debt Securities, Available-for-sale [Line Items] | |
Federal Home Loan Bank, Advances, General Debt Obligations, Disclosures, Collateral Pledged | 18.1 |
Federal Home Loan Bank of New York [Member] | Residential Mortgage Backed Securities [Member] | |
Debt Securities, Available-for-sale [Line Items] | |
Federal Home Loan Bank, Advances, General Debt Obligations, Disclosures, Collateral Pledged | 45.5 |
Federal Home Loan Bank of Indianapolis [Member] | |
Debt Securities, Available-for-sale [Line Items] | |
Federal Home Loan Bank, Advances, General Debt Obligations, Disclosures, Collateral Pledged | 65.2 |
Federal Home Loan Bank of Indianapolis [Member] | U.S. Government and Government Agencies [Member] | |
Debt Securities, Available-for-sale [Line Items] | |
Federal Home Loan Bank, Advances, General Debt Obligations, Disclosures, Collateral Pledged | 0.0 |
Federal Home Loan Bank of Indianapolis [Member] | Obligations of States and Political Subdivisions [Member] | |
Debt Securities, Available-for-sale [Line Items] | |
Federal Home Loan Bank, Advances, General Debt Obligations, Disclosures, Collateral Pledged | 0.0 |
Federal Home Loan Bank of Indianapolis [Member] | Corporate Securities [Member] | |
Debt Securities, Available-for-sale [Line Items] | |
Federal Home Loan Bank, Advances, General Debt Obligations, Disclosures, Collateral Pledged | 0.0 |
Federal Home Loan Bank of Indianapolis [Member] | Commercial Mortgage Backed Securities [Member] | |
Debt Securities, Available-for-sale [Line Items] | |
Federal Home Loan Bank, Advances, General Debt Obligations, Disclosures, Collateral Pledged | 7.2 |
Federal Home Loan Bank of Indianapolis [Member] | Residential Mortgage Backed Securities [Member] | |
Debt Securities, Available-for-sale [Line Items] | |
Federal Home Loan Bank, Advances, General Debt Obligations, Disclosures, Collateral Pledged | $ 58.0 |
Investments (Net Investment Income) (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 |
[1] | Sep. 30, 2018 |
Jun. 30, 2018 |
Mar. 31, 2018 |
Dec. 31, 2017 |
[1] | Sep. 30, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|||
Statement [Line Items] | |||||||||||||||
Net investment income earned | $ 54,109 | $ 52,443 | $ 45,553 | $ 43,231 | $ 42,587 | $ 40,446 | $ 41,430 | $ 37,419 | $ 195,336 | $ 161,882 | $ 130,754 | ||||
Fixed Income Securities [Member] | |||||||||||||||
Statement [Line Items] | |||||||||||||||
Net investment income earned | 178,104 | 153,230 | 129,306 | ||||||||||||
Equity Securities [Member] | |||||||||||||||
Statement [Line Items] | |||||||||||||||
Net investment income earned | 7,764 | 6,442 | 7,368 | ||||||||||||
Short-term Investments [Member] | |||||||||||||||
Statement [Line Items] | |||||||||||||||
Net investment income earned | 3,472 | 1,526 | 686 | ||||||||||||
Other Investment Portfolio [Member] | |||||||||||||||
Statement [Line Items] | |||||||||||||||
Net investment income earned | 17,799 | 12,871 | 2,940 | ||||||||||||
Investment Expenses [Member] | |||||||||||||||
Statement [Line Items] | |||||||||||||||
Net investment income earned | $ (11,803) | $ (12,187) | $ (9,546) | ||||||||||||
|
Investments (OTTI by Asset Type) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
OTTI Losses Gross | $ 6,579 | $ 4,809 | $ 8,509 |
OTTI included in OCI | 0 | (36) | 10 |
Total OTTI charges recognized in earnings | 6,579 | 4,845 | 8,499 |
Other Investments [Member] | |||
OTTI Losses Gross | 1,893 | 190 | |
OTTI included in OCI | 0 | 0 | |
Total OTTI charges recognized in earnings | 1,893 | 190 | |
AFS Fixed Income Securities [Member] | |||
OTTI Losses Gross | 4,686 | 3,184 | 5,191 |
OTTI included in OCI | 0 | (36) | 10 |
Total OTTI charges recognized in earnings | 4,686 | 3,220 | 5,181 |
AFS Fixed Income Securities [Member] | US Government Agencies Debt Securities [Member] | |||
OTTI Losses Gross | 36 | ||
OTTI included in OCI | 0 | ||
Total OTTI charges recognized in earnings | 36 | ||
AFS Fixed Income Securities [Member] | Obligations of States and Political Subdivisions [Member] | |||
OTTI Losses Gross | 612 | 2,797 | |
OTTI included in OCI | 0 | 0 | |
Total OTTI charges recognized in earnings | 612 | 2,797 | |
AFS Fixed Income Securities [Member] | Corporate Securities [Member] | |||
OTTI Losses Gross | 1,783 | 587 | 1,880 |
OTTI included in OCI | 0 | 0 | 0 |
Total OTTI charges recognized in earnings | 1,783 | 587 | 1,880 |
AFS Fixed Income Securities [Member] | Collateralized Loan Obligations and Other Asset-Backed Securities [Member] | |||
OTTI Losses Gross | 96 | 19 | |
OTTI included in OCI | 0 | 0 | |
Total OTTI charges recognized in earnings | 96 | 19 | |
AFS Fixed Income Securities [Member] | Commercial Mortgage Backed Securities [Member] | |||
OTTI Losses Gross | 670 | 220 | |
OTTI included in OCI | 0 | 0 | |
Total OTTI charges recognized in earnings | 670 | 220 | |
AFS Fixed Income Securities [Member] | Residential Mortgage Backed Securities [Member] | |||
OTTI Losses Gross | 2,903 | 1,183 | 275 |
OTTI included in OCI | 0 | (36) | 10 |
Total OTTI charges recognized in earnings | $ 2,903 | 1,219 | 265 |
Available-for-sale Securities [Member] | Equity Securities [Member] | |||
OTTI Losses Gross | 1,435 | 3,318 | |
OTTI included in OCI | 0 | 0 | |
Total OTTI charges recognized in earnings | 1,435 | 3,318 | |
Common Stock [Member] | Available-for-sale Securities [Member] | Equity Securities [Member] | |||
OTTI Losses Gross | 1,435 | 3,316 | |
OTTI included in OCI | 0 | 0 | |
Total OTTI charges recognized in earnings | $ 1,435 | 3,316 | |
Nonredeemable Preferred Stock [Member] | Available-for-sale Securities [Member] | Equity Securities [Member] | |||
OTTI Losses Gross | 2 | ||
OTTI included in OCI | 0 | ||
Total OTTI charges recognized in earnings | $ 2 |
Investments (Components of Net Realized and Unrealized Gains (Losses)) (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 |
[1],[2] | Sep. 30, 2018 |
[1] | Jun. 30, 2018 |
[1] | Mar. 31, 2018 |
[1] | Dec. 31, 2017 |
[1],[2] | Sep. 30, 2017 |
[1] | Jun. 30, 2017 |
[1] | Mar. 31, 2017 |
[1] | Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|||||
Gain (Loss) on Securities [Line Items] | |||||||||||||||||||||||
Unrealized Gain (Loss) on Investments | $ (3,100) | ||||||||||||||||||||||
Unrealized Gain Loss on Equity Securities Sold | (26,300) | ||||||||||||||||||||||
Net realized investment (losses) gains on disposals | (18,975) | $ 11,204 | $ 3,562 | ||||||||||||||||||||
OTTI charges | (6,579) | (4,845) | (8,499) | ||||||||||||||||||||
Net realized (losses) gains | (25,554) | 6,359 | (4,937) | ||||||||||||||||||||
Unrealized losses recognized in income on equity securities | (29,369) | 0 | 0 | ||||||||||||||||||||
Total net realized and unrealized (losses) gains | $ (37,935) | $ (4,787) | $ (1,652) | $ (10,549) | $ (1,128) | $ 6,798 | $ 1,734 | $ (1,045) | (54,923) | 6,359 | (4,937) | ||||||||||||
Fixed Income Securities [Member] | |||||||||||||||||||||||
Gain (Loss) on Securities [Line Items] | |||||||||||||||||||||||
Net realized investment (losses) gains on disposals | (34,953) | 6,944 | (3,668) | ||||||||||||||||||||
Equity Securities [Member] | |||||||||||||||||||||||
Gain (Loss) on Securities [Line Items] | |||||||||||||||||||||||
Net realized investment (losses) gains on disposals | 18,695 | 4,629 | 7,244 | ||||||||||||||||||||
Short-term Investments [Member] | |||||||||||||||||||||||
Gain (Loss) on Securities [Line Items] | |||||||||||||||||||||||
Net realized investment (losses) gains on disposals | (3) | (4) | (13) | ||||||||||||||||||||
Other Investments [Member] | |||||||||||||||||||||||
Gain (Loss) on Securities [Line Items] | |||||||||||||||||||||||
Net realized investment (losses) gains on disposals | $ (2,714) | $ (365) | $ (1) | ||||||||||||||||||||
|
Investments (Net Realized Gains Losses on Disposal) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Schedule of Available-for-sale and Held-to-maturity Securities [Line Items] | |||
HTM fixed income securities gains | $ 2 | $ 44 | $ 3 |
HTM fixed income securities losses | 0 | (1) | (1) |
Equity securities gains | 23,203 | ||
Equity securities losses | (4,508) | ||
Short term investments gains | (7) | (2) | 0 |
Short term investments losses | 10 | 6 | (13) |
Other investment securities gains | 0 | 494 | 3 |
Other investment securities losses | (2,714) | (859) | (4) |
Net realized investment (losses) gains on disposals | (18,975) | 11,204 | 3,562 |
Sale of fixed income securities, available-for-sale | 2,030,664 | 1,197,920 | 926,470 |
Sale of equity securities | 113,339 | ||
Sale of equity securities, available-for-sale | 37,960 | 119,617 | |
Fixed Income Securities [Member] | |||
Schedule of Available-for-sale and Held-to-maturity Securities [Line Items] | |||
AFS securities gains | 5,460 | 10,193 | 7,741 |
AFS securities losses | (40,415) | (3,292) | (11,411) |
Equity Securities [Member] | |||
Schedule of Available-for-sale and Held-to-maturity Securities [Line Items] | |||
AFS securities gains | 5,829 | 8,108 | |
AFS securities losses | (1,200) | (864) | |
Net realized investment (losses) gains on disposals | $ 18,695 | $ 4,629 | $ 7,244 |
Comprehensive Income (Components of Comprehensive Income-Gross and Net of Tax) (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 |
Sep. 30, 2018 |
Jun. 30, 2018 |
Mar. 31, 2018 |
Dec. 31, 2017 |
Sep. 30, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|||||
Income before federal income tax | $ 52,135 | $ 67,130 | $ 72,525 | $ 19,931 | $ 68,150 | $ 67,315 | $ 58,929 | $ 67,574 | $ 211,721 | $ 261,968 | $ 219,955 | ||||
Income Tax Expense (Benefit) | 32,782 | 93,142 | 61,460 | ||||||||||||
Net income | $ 45,760 | [1] | $ 55,435 | $ 58,819 | $ 18,925 | $ 30,242 | [1] | $ 46,718 | $ 41,426 | $ 50,440 | 178,939 | 168,826 | 158,495 | ||
Unrealized holding gains (losses) during the period, Gross | (123,145) | 66,894 | (9,195) | ||||||||||||
Unrealized holding gains (losses) during the period, Tax | (25,861) | 23,879 | (3,218) | ||||||||||||
Unrealized holding gains (losses) arising during period, Net | (97,284) | 43,015 | (5,977) | ||||||||||||
Non-credit portion of other-than-temporary impairment losses recognized in other comprehensive income, Gross | 36 | (10) | |||||||||||||
Non-Credit Portion of Other-Than-Temporary Impairment Losses Recognized In Other Comprehensive Income, Tax | 13 | (4) | |||||||||||||
Non-credit portion of other-than-temporary impairments recognized in other comprehensive income, Net | 23 | (6) | |||||||||||||
Amount reclassified into net income: HTM securities, Gross | 110 | (179) | (141) | ||||||||||||
Amounts reclassified into net income: HTM securities, Tax | 23 | (63) | (49) | ||||||||||||
Amount reclassified into net income: HTM securities, Net | 87 | (116) | (92) | ||||||||||||
Non-credit OTTI, Gross | 104 | 213 | |||||||||||||
Non-credit OTTI, Tax | 36 | 75 | |||||||||||||
Amounts reclassified into net income: Non-credit other-than-temporary impairment | 0 | 68 | 138 | ||||||||||||
Realized (gains) losses on AFS securities, Gross | 39,641 | (6,979) | 4,713 | ||||||||||||
Realized (gains) losses on AFS securities, Tax | 8,325 | (2,442) | 1,649 | ||||||||||||
Realized (gains) losses on available for sale securities | 31,316 | (4,537) | 3,064 | ||||||||||||
Net unrealized gains (losses), Gross | (83,394) | 59,876 | (4,420) | ||||||||||||
Net unrealized gains (losses), Tax | (17,513) | 21,423 | (1,547) | ||||||||||||
Total unrealized (losses) gains on investment securities | (65,881) | 38,453 | (2,873) | ||||||||||||
Net actuarial (loss) gain, Gross | (11,273) | (4,684) | (12,079) | ||||||||||||
Net actuarial (loss) gain, Tax | (2,367) | (984) | (4,227) | ||||||||||||
Net actuarial (loss) gain, Net | (8,906) | (3,700) | (7,852) | ||||||||||||
Amount reclassified into net i ncome: Net actuarial loss, Gross | 2,127 | 2,102 | 6,462 | ||||||||||||
Amount reclassified into Net Income: Net actuarial loss, Tax | 447 | 735 | 2,262 | ||||||||||||
Amount reclassified into net income: Net actuarial loss, Net | 1,680 | 1,367 | 4,200 | ||||||||||||
Defined pension and other post-retirement benefit plans, Gross | (9,146) | (2,582) | (5,617) | ||||||||||||
Defined pension and other post-retirement benefit plans, Tax | (1,920) | (249) | (1,965) | ||||||||||||
Total defined benefit pension and post-retirement plans | (7,226) | (2,333) | (3,652) | ||||||||||||
Other Comprehensive Income (Loss), Gross | (92,540) | 57,294 | (10,037) | ||||||||||||
Other Comprehensive Income (Loss), Tax | (19,433) | 21,174 | (3,512) | ||||||||||||
Other comprehensive (loss) income | (73,107) | 36,120 | (6,525) | ||||||||||||
Comprehensive Income, Before Tax | 119,181 | 319,262 | 209,918 | ||||||||||||
Comprehensive Income, Tax | 13,349 | 114,316 | 57,948 | ||||||||||||
Comprehensive income | $ 105,832 | $ 204,946 | $ 151,970 | ||||||||||||
|
Comprehensive Income (Components of Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Thousands |
12 Months Ended | |||||
---|---|---|---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Balance December, | $ 20,170 | |||||
Amounts reclassified into net income: Non-credit other-than-temporary impairment | 0 | $ 68 | $ 138 | |||
Amount reclassified from AOCI, HTM | 87 | (116) | (92) | |||
OCI before reclassifications, Defined Benefit Pension and Post Retirement Plans | (8,906) | (3,700) | (7,852) | |||
Amounts reclassified from AOCI,All other | 31,316 | (4,537) | 3,064 | |||
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, after Tax | (7,226) | (2,333) | (3,652) | |||
Other comprehensive (loss) income | (73,107) | 36,120 | (6,525) | |||
Balance December, | (77,956) | 20,170 | ||||
Accumulated Other-than-Temporary Impairment [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Balance December, | (59) | (150) | ||||
Cumulative effect adjustment | [1] | (12) | ||||
OCI before reclassifications | 0 | 23 | ||||
Other comprehensive (loss) income | 0 | 91 | ||||
Balance December, | (71) | (59) | (150) | |||
Accumulated Defined Benefit Plans Adjustment [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Balance December, | (60,405) | (58,072) | ||||
Cumulative effect adjustment | [1] | (12,213) | ||||
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, after Tax | 1,680 | 1,367 | ||||
Balance December, | (79,844) | (60,405) | (58,072) | |||
Accumulated other comprehensive (loss) income [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Balance December, | 20,170 | (15,950) | ||||
Cumulative effect adjustment | [1] | (25,019) | ||||
OCI before reclassifications | (106,190) | 39,338 | ||||
Amount reclassified from AOCI | 33,083 | (3,218) | ||||
Other comprehensive (loss) income | (73,107) | 36,120 | (6,525) | |||
Balance December, | (77,956) | 20,170 | (15,950) | |||
Held-to-maturity Securities [Member] | Accumulated Net Unrealized Investment Gain (Loss) [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Balance December, | (14) | 102 | ||||
Cumulative effect adjustment | [1] | (2) | ||||
OCI before reclassifications | 0 | 0 | ||||
Other comprehensive (loss) income | 87 | (116) | ||||
Balance December, | 71 | (14) | 102 | |||
Available-for-sale Securities [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Balance December, | 80,648 | 42,170 | ||||
Cumulative effect adjustment | [1] | (12,792) | ||||
OCI before reclassifications | (97,284) | 43,015 | ||||
Other comprehensive (loss) income | (65,968) | 38,478 | ||||
Balance December, | 1,888 | 80,648 | 42,170 | |||
Investments [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Balance December, | 80,575 | 42,122 | ||||
Cumulative effect adjustment | [1] | (12,806) | ||||
OCI before reclassifications | (97,284) | 43,038 | ||||
Amount reclassified from AOCI | 31,403 | (4,585) | ||||
Other comprehensive (loss) income | (65,881) | 38,453 | ||||
Balance December, | 1,888 | 80,575 | $ 42,122 | |||
Adjustments for New Accounting Pronouncement [Member] | Accumulated Other-than-Temporary Impairment [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Balance December, | (71) | |||||
Balance December, | (71) | |||||
Adjustments for New Accounting Pronouncement [Member] | Accumulated Defined Benefit Plans Adjustment [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Balance December, | (72,618) | |||||
Balance December, | (72,618) | |||||
Adjustments for New Accounting Pronouncement [Member] | Accumulated other comprehensive (loss) income [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Balance December, | (4,849) | |||||
Balance December, | (4,849) | |||||
Adjustments for New Accounting Pronouncement [Member] | Held-to-maturity Securities [Member] | Accumulated Net Unrealized Investment Gain (Loss) [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Balance December, | (16) | |||||
Balance December, | (16) | |||||
Adjustments for New Accounting Pronouncement [Member] | Available-for-sale Securities [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Balance December, | 67,856 | |||||
Balance December, | 67,856 | |||||
Adjustments for New Accounting Pronouncement [Member] | Investments [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Balance December, | $ 67,769 | |||||
Balance December, | $ 67,769 | |||||
|
Comprehensive Income (Reclassification out of AOCI) (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 |
Sep. 30, 2018 |
Jun. 30, 2018 |
Mar. 31, 2018 |
Dec. 31, 2017 |
Sep. 30, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|||||
Net realized (losses) gains | $ (25,554) | $ 6,359 | $ (4,937) | ||||||||||||
Net investment income | $ 54,109 | [1] | $ 52,443 | $ 45,553 | $ 43,231 | $ 42,587 | [1] | $ 40,446 | $ 41,430 | $ 37,419 | 195,336 | 161,882 | 130,754 | ||
Income before federal income tax | 52,135 | 67,130 | 72,525 | 19,931 | 68,150 | 67,315 | 58,929 | 67,574 | 211,721 | 261,968 | 219,955 | ||||
Income Tax Expense (Benefit) | (32,782) | (93,142) | (61,460) | ||||||||||||
Net income | $ 45,760 | [1] | $ 55,435 | $ 58,819 | $ 18,925 | $ 30,242 | [1] | $ 46,718 | $ 41,426 | $ 50,440 | 178,939 | 168,826 | 158,495 | ||
Loss and loss expense incurred | 1,498,134 | 1,345,074 | 1,234,797 | ||||||||||||
Policy acquisition costs | 331,318 | 333,097 | 321,395 | ||||||||||||
Total defined benefit pension and post-retirement plans | (7,226) | (2,333) | $ (3,652) | ||||||||||||
Reclassification out of Accumulated Other Comprehensive Income [Member] | |||||||||||||||
Net income | 33,083 | (3,218) | |||||||||||||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Retirement Income Plan [Member] | |||||||||||||||
Income before federal income tax | 2,127 | 2,102 | |||||||||||||
Income Tax Expense (Benefit) | (447) | (735) | |||||||||||||
Net income | 1,680 | 1,367 | |||||||||||||
Loss and loss expense incurred | 450 | 450 | |||||||||||||
Policy acquisition costs | 1,677 | 1,652 | |||||||||||||
Accumulated other-than-temporary impairments including portion attributable to noncontrolling interest [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | |||||||||||||||
Net realized (losses) gains | 0 | 104 | |||||||||||||
Income before federal income tax | 0 | 104 | |||||||||||||
Income Tax Expense (Benefit) | 0 | (36) | |||||||||||||
Net income | 0 | 68 | |||||||||||||
Held-to-maturity Securities [Member] | Accumulated net investment gain (loss) including portion attributable to noncontrolling interest [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | |||||||||||||||
Net realized (losses) gains | 137 | 32 | |||||||||||||
Net investment income | (27) | (211) | |||||||||||||
Income before federal income tax | 110 | (179) | |||||||||||||
Income Tax Expense (Benefit) | (23) | 63 | |||||||||||||
Net income | 87 | (116) | |||||||||||||
Available-for-sale Securities [Member] | Accumulated net investment gain (loss) including portion attributable to noncontrolling interest [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | |||||||||||||||
Net realized (losses) gains | 39,641 | (6,979) | |||||||||||||
Income before federal income tax | 39,641 | (6,979) | |||||||||||||
Income Tax Expense (Benefit) | (8,325) | 2,442 | |||||||||||||
Net income | $ 31,316 | $ (4,537) | |||||||||||||
|
Fair Value Measurements (Carrying Value and Estimated Fair Value of Financial Instruments) (Details) - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Fixed income securities, held-to-maturity | $ 37,110 | $ 42,129 |
Debt Securities, Available-for-sale | 5,273,100 | 5,162,522 |
Equity securities | 147,639 | |
Equity securities, AFS | 182,705 | |
Short-term investments | 323,864 | 165,555 |
Long-term debt | 439,540 | 439,116 |
Seven Point Twenty Five Percent Senior Notes [Member] | ||
Long-term Debt, Fair Value | 57,032 | 61,391 |
Six Point Seventy Percent Senior Notes [Member] | ||
Long-term Debt, Fair Value | 107,075 | 116,597 |
Five Point Eight Hundred Seventy Five Percent Senior Notes [Member] | ||
Long-term Debt, Fair Value | 177,230 | 186,332 |
One Point Sixty One Percent Borrowing From Federal Home Loan Bank Due July 21, 2021 [Member] | ||
Long-term Debt, Fair Value | 24,218 | 24,270 |
One Point Fifty Six Percent Borrowing From Federal Home Loan Bank Due August 16, 2021 [Member] | ||
Long-term Debt, Fair Value | 24,162 | 24,210 |
Three Point Zero Three Percent Borrowing From Federal Home Loan Bank Due December 16, 2026 [Member] | ||
Long-term Debt, Fair Value | 58,905 | 60,334 |
Carrying Amount [Member] | ||
Fixed income securities, held-to-maturity | 37,110 | 42,129 |
Debt Securities, Available-for-sale | 5,273,100 | 5,162,522 |
Equity securities | 147,639 | |
Equity securities, AFS | 182,705 | |
Short-term investments | 323,864 | 165,555 |
Long-term debt | 439,540 | 439,116 |
Carrying Amount [Member] | Seven Point Twenty Five Percent Senior Notes [Member] | ||
Long-term debt | 49,907 | 49,904 |
Carrying Amount [Member] | Six Point Seventy Percent Senior Notes [Member] | ||
Long-term debt | 99,462 | 99,446 |
Carrying Amount [Member] | Five Point Eight Hundred Seventy Five Percent Senior Notes [Member] | ||
Long-term debt | 185,000 | 185,000 |
Carrying Amount [Member] | One Point Sixty One Percent Borrowing From Federal Home Loan Bank Due July 21, 2021 [Member] | ||
Long-term debt | 25,000 | 25,000 |
Carrying Amount [Member] | One Point Fifty Six Percent Borrowing From Federal Home Loan Bank Due August 16, 2021 [Member] | ||
Long-term debt | 25,000 | 25,000 |
Carrying Amount [Member] | Three Point Zero Three Percent Borrowing From Federal Home Loan Bank Due December 16, 2026 [Member] | ||
Long-term debt | 60,000 | 60,000 |
Carrying Amount [Member] | Long Term Debt Excluding Issuance Costs [Member] | ||
Long-term debt | 444,369 | 444,350 |
Carrying Amount [Member] | Unamortized Debt Issuance Costs [Member] | ||
Unamortized debt issuance costs | (4,829) | (5,234) |
Fair Value [Member] | ||
Fixed income securities, held-to-maturity | 38,317 | 44,100 |
Debt Securities, Available-for-sale | 5,273,100 | 5,162,522 |
Equity securities | 147,639 | |
Equity securities, AFS | 182,705 | |
Short-term investments | 323,864 | 165,555 |
Long-term Debt, Fair Value | 448,622 | 473,134 |
Fair Value [Member] | Seven Point Twenty Five Percent Senior Notes [Member] | ||
Long-term Debt, Fair Value | 57,032 | 61,391 |
Fair Value [Member] | Six Point Seventy Percent Senior Notes [Member] | ||
Long-term Debt, Fair Value | 107,075 | 116,597 |
Fair Value [Member] | Five Point Eight Hundred Seventy Five Percent Senior Notes [Member] | ||
Long-term Debt, Fair Value | 177,230 | 186,332 |
Fair Value [Member] | One Point Sixty One Percent Borrowing From Federal Home Loan Bank Due July 21, 2021 [Member] | ||
Long-term Debt, Fair Value | 24,218 | 24,270 |
Fair Value [Member] | One Point Fifty Six Percent Borrowing From Federal Home Loan Bank Due August 16, 2021 [Member] | ||
Long-term Debt, Fair Value | 24,162 | 24,210 |
Fair Value [Member] | Three Point Zero Three Percent Borrowing From Federal Home Loan Bank Due December 16, 2026 [Member] | ||
Long-term Debt, Fair Value | $ 58,905 | $ 60,334 |
Fair Value Measurements (Quantitative Disclosures at Fair Value Assets) (Details) - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments Net Asset Value | $ 37,300 | $ 23,700 |
Debt Securities, Available-for-sale | 5,273,100 | 5,162,522 |
Equity securities | 147,639 | |
Equity securities, AFS | 182,705 | |
Total AFS securities | 5,345,227 | |
Short-term investments | 323,864 | 165,555 |
Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale | 5,273,100 | 5,162,522 |
Equity securities | 147,639 | |
Equity securities, AFS | 182,705 | |
Total AFS securities | 5,345,227 | |
Short-term investments | 323,864 | 165,555 |
Total Assets | 5,744,603 | 5,510,782 |
U.S. Government and Government Agencies and Authorities [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale | 121,310 | 49,740 |
Foreign Government [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale | 23,131 | 18,555 |
Obligations of States and Political Subdivisions [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale | 1,138,469 | 1,582,970 |
Corporate Securities [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale | 1,617,408 | 1,617,468 |
Collateralized Loan Obligations and Other Asset-Backed Securities [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale | 717,362 | 795,458 |
Commercial Mortgage-backed Securities (CMBS) [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale | 527,078 | 383,449 |
Residential Mortgage Backed Securities [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale | 1,128,342 | 714,882 |
Common Stock [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 144,727 | |
Equity securities, AFS | 167,757 | |
Nonredeemable Preferred Stock [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 2,912 | |
Equity securities, AFS | 14,948 | |
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale | 78,381 | 24,652 |
Equity securities | 110,309 | |
Equity securities, AFS | 153,588 | |
Total AFS securities | 178,240 | |
Short-term investments | 321,370 | 165,555 |
Total Assets | 510,060 | 343,795 |
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | U.S. Government and Government Agencies and Authorities [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale | 78,381 | 24,652 |
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Foreign Government [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Obligations of States and Political Subdivisions [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Corporate Securities [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Collateralized Loan Obligations and Other Asset-Backed Securities [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Commercial Mortgage-backed Securities (CMBS) [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Residential Mortgage Backed Securities [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Common Stock [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 107,397 | |
Equity securities, AFS | 138,640 | |
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Nonredeemable Preferred Stock [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 2,912 | |
Equity securities, AFS | 14,948 | |
Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale | 5,187,310 | 5,131,316 |
Equity securities | 0 | |
Equity securities, AFS | 0 | |
Total AFS securities | 5,131,316 | |
Short-term investments | 2,494 | 0 |
Total Assets | 5,189,804 | 5,131,316 |
Significant Other Observable Inputs (Level 2) [Member] | U.S. Government and Government Agencies and Authorities [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale | 42,929 | 25,088 |
Significant Other Observable Inputs (Level 2) [Member] | Foreign Government [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale | 23,131 | 18,555 |
Significant Other Observable Inputs (Level 2) [Member] | Obligations of States and Political Subdivisions [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale | 1,138,469 | 1,582,970 |
Significant Other Observable Inputs (Level 2) [Member] | Corporate Securities [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale | 1,617,408 | 1,617,468 |
Significant Other Observable Inputs (Level 2) [Member] | Collateralized Loan Obligations and Other Asset-Backed Securities [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale | 709,953 | 795,458 |
Significant Other Observable Inputs (Level 2) [Member] | Commercial Mortgage-backed Securities (CMBS) [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale | 527,078 | 376,895 |
Significant Other Observable Inputs (Level 2) [Member] | Residential Mortgage Backed Securities [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale | 1,128,342 | 714,882 |
Significant Other Observable Inputs (Level 2) [Member] | Common Stock [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 0 | |
Equity securities, AFS | 0 | |
Significant Other Observable Inputs (Level 2) [Member] | Nonredeemable Preferred Stock [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 0 | |
Equity securities, AFS | 0 | |
Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale | 7,409 | 6,554 |
Equity securities | 0 | |
Equity securities, AFS | 5,398 | |
Total AFS securities | 11,952 | |
Short-term investments | 0 | 0 |
Total Assets | 7,409 | 11,952 |
Significant Unobservable Inputs (Level 3) [Member] | U.S. Government and Government Agencies and Authorities [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Foreign Government [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Obligations of States and Political Subdivisions [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Corporate Securities [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Collateralized Loan Obligations and Other Asset-Backed Securities [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale | 7,409 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Commercial Mortgage-backed Securities (CMBS) [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale | 0 | 6,554 |
Significant Unobservable Inputs (Level 3) [Member] | Residential Mortgage Backed Securities [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Securities, Available-for-sale | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Common Stock [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 0 | |
Equity securities, AFS | 5,398 | |
Significant Unobservable Inputs (Level 3) [Member] | Nonredeemable Preferred Stock [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | $ 0 | |
Equity securities, AFS | $ 0 |
Fair Value Measurements (Changes in Fair Value of Securities Using Level 3 Inputs) (Details) $ in Thousands |
12 Months Ended |
---|---|
Dec. 31, 2018
USD ($)
| |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Fair Value, Beginning Balance | $ 11,952 |
Total net (losses) gains for the period included in OCI | 0 |
Total net (losses) gains for the period included in net income | 0 |
Purchases | 7,409 |
Sales | 0 |
Issuances | 0 |
Settlements | 0 |
Transfers into Level 3 | 0 |
Transfers out of Level 3 | (11,952) |
Fair Value, Ending Balance | 7,409 |
Common Stock [Member] | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Fair Value, Beginning Balance | 5,398 |
Total net (losses) gains for the period included in OCI | 0 |
Total net (losses) gains for the period included in net income | 0 |
Purchases | 0 |
Sales | 0 |
Issuances | 0 |
Settlements | 0 |
Transfers into Level 3 | 0 |
Transfers out of Level 3 | (5,398) |
Fair Value, Ending Balance | 0 |
AFS Fixed Income Securities [Member] | Commercial Mortgage-backed Securities (CMBS) [Member] | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Fair Value, Beginning Balance | 6,554 |
Total net (losses) gains for the period included in OCI | 0 |
Total net (losses) gains for the period included in net income | 0 |
Purchases | 0 |
Sales | 0 |
Issuances | 0 |
Settlements | 0 |
Transfers into Level 3 | 0 |
Transfers out of Level 3 | (6,554) |
Fair Value, Ending Balance | 0 |
AFS Fixed Income Securities [Member] | Collateralized Loan Obligations and Other Asset-Backed Securities [Member] | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Fair Value, Beginning Balance | 0 |
Total net (losses) gains for the period included in OCI | 0 |
Total net (losses) gains for the period included in net income | 0 |
Purchases | 7,409 |
Sales | 0 |
Issuances | 0 |
Settlements | 0 |
Transfers into Level 3 | 0 |
Transfers out of Level 3 | 0 |
Fair Value, Ending Balance | $ 7,409 |
Fair Value Measurements (Quantitative Information of Our Financial Assets and Liabilities That Were Disclosed at Fair Value) (Details) - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total HTM fixed income securities fair value | $ 38,317 | $ 44,100 |
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total HTM fixed income securities fair value | 0 | 0 |
Long-term Debt, Fair Value | 177,230 | 186,332 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total HTM fixed income securities fair value | 38,317 | 38,567 |
Long-term Debt, Fair Value | 271,392 | 286,802 |
Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total HTM fixed income securities fair value | 0 | 5,533 |
Long-term Debt, Fair Value | 0 | 0 |
Obligations of States and Political Subdivisions [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total HTM fixed income securities fair value | 17,969 | 26,261 |
Obligations of States and Political Subdivisions [Member] | Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total HTM fixed income securities fair value | 0 | 0 |
Obligations of States and Political Subdivisions [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total HTM fixed income securities fair value | 17,969 | 26,261 |
Obligations of States and Political Subdivisions [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total HTM fixed income securities fair value | 0 | 0 |
Corporate Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total HTM fixed income securities fair value | 20,348 | 17,839 |
Corporate Securities [Member] | Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total HTM fixed income securities fair value | 0 | 0 |
Corporate Securities [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total HTM fixed income securities fair value | 20,348 | 12,306 |
Corporate Securities [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total HTM fixed income securities fair value | 0 | 5,533 |
Seven Point Twenty Five Percent Senior Notes [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term Debt, Fair Value | 57,032 | 61,391 |
Seven Point Twenty Five Percent Senior Notes [Member] | Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term Debt, Fair Value | 0 | 0 |
Seven Point Twenty Five Percent Senior Notes [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term Debt, Fair Value | 57,032 | 61,391 |
Seven Point Twenty Five Percent Senior Notes [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term Debt, Fair Value | 0 | 0 |
Six Point Seventy Percent Senior Notes [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term Debt, Fair Value | 107,075 | 116,597 |
Six Point Seventy Percent Senior Notes [Member] | Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term Debt, Fair Value | 0 | 0 |
Six Point Seventy Percent Senior Notes [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term Debt, Fair Value | 107,075 | 116,597 |
Six Point Seventy Percent Senior Notes [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term Debt, Fair Value | 0 | 0 |
Five Point Eight Hundred Seventy Five Percent Senior Notes [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term Debt, Fair Value | 177,230 | 186,332 |
Five Point Eight Hundred Seventy Five Percent Senior Notes [Member] | Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term Debt, Fair Value | 177,230 | 186,332 |
Five Point Eight Hundred Seventy Five Percent Senior Notes [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term Debt, Fair Value | 0 | 0 |
Five Point Eight Hundred Seventy Five Percent Senior Notes [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term Debt, Fair Value | 0 | 0 |
One Point Sixty One Percent Borrowing From Federal Home Loan Bank Due July 21, 2021 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term Debt, Fair Value | 24,218 | 24,270 |
One Point Sixty One Percent Borrowing From Federal Home Loan Bank Due July 21, 2021 [Member] | Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term Debt, Fair Value | 0 | 0 |
One Point Sixty One Percent Borrowing From Federal Home Loan Bank Due July 21, 2021 [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term Debt, Fair Value | 24,218 | 24,270 |
One Point Sixty One Percent Borrowing From Federal Home Loan Bank Due July 21, 2021 [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term Debt, Fair Value | 0 | 0 |
One Point Fifty Six Percent Borrowing From Federal Home Loan Bank Due August 16, 2021 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term Debt, Fair Value | 24,162 | 24,210 |
One Point Fifty Six Percent Borrowing From Federal Home Loan Bank Due August 16, 2021 [Member] | Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term Debt, Fair Value | 0 | 0 |
One Point Fifty Six Percent Borrowing From Federal Home Loan Bank Due August 16, 2021 [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term Debt, Fair Value | 24,162 | 24,210 |
One Point Fifty Six Percent Borrowing From Federal Home Loan Bank Due August 16, 2021 [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term Debt, Fair Value | 0 | 0 |
Three Point Zero Three Percent Borrowing From Federal Home Loan Bank Due December 16, 2026 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term Debt, Fair Value | 58,905 | 60,334 |
Three Point Zero Three Percent Borrowing From Federal Home Loan Bank Due December 16, 2026 [Member] | Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term Debt, Fair Value | 0 | 0 |
Three Point Zero Three Percent Borrowing From Federal Home Loan Bank Due December 16, 2026 [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term Debt, Fair Value | 58,905 | 60,334 |
Three Point Zero Three Percent Borrowing From Federal Home Loan Bank Due December 16, 2026 [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term Debt, Fair Value | 0 | 0 |
Long-term Debt [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term Debt, Fair Value | $ 448,622 | $ 473,134 |
Reinsurance (Total Reinsurance Balances Segregated By Reinsurer) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
||||||
Terrorism Risk Insurance Program Companys Estimated Deductible | $ 339,000 | ||||||||
Terrorism Risk Insurance Program Reimbursed Percentage Maximum | 81.00% | ||||||||
Terrorism Risk Insurance Program Annual Cap | $ 100,000,000 | ||||||||
Terrorism Risk Insurance Program Insurer Retainer | 19.00% | ||||||||
Terrorism Risk Insurance Program Reimbursed Percentage Minimum | 80.00% | ||||||||
Allowance For Reinsurance Recoverable | $ 13,900 | $ 14,600 | $ 11,480 | $ 10,122 | |||||
Total reinsurance recoverables | 549,172 | 594,832 | |||||||
Total prepaid reinsurance premiums | 157,723 | 153,493 | |||||||
Net unsecured reinsurance balances | 706,895 | 748,325 | |||||||
Less: collateral | [1] | (112,201) | (122,413) | ||||||
National Flood Insurance Program [Member] | |||||||||
Net unsecured reinsurance balances | [2] | $ 170,453 | $ 204,161 | ||||||
% of Net Unsecured Reinsurance | [2] | 24.00% | 27.00% | ||||||
NJ Unsatisfied Claim Judgment Fund [Member] | |||||||||
Net unsecured reinsurance balances | [2] | $ 55,167 | $ 62,947 | ||||||
% of Net Unsecured Reinsurance | [2] | 7.00% | 9.00% | ||||||
Other Federal And State Pools [Member] | |||||||||
Net unsecured reinsurance balances | [2] | $ 3,602 | $ 3,634 | ||||||
% of Net Unsecured Reinsurance | [2] | 1.00% | 0.00% | ||||||
Total Federal And State Pools [Member] | |||||||||
Net unsecured reinsurance balances | [2] | $ 229,222 | $ 270,742 | ||||||
% of Net Unsecured Reinsurance | [2] | 32.00% | 36.00% | ||||||
Remaining Unsecured Reinsurance [Member] | |||||||||
Net unsecured reinsurance balances | $ 477,673 | $ 477,583 | |||||||
% of Net Unsecured Reinsurance | 68.00% | 64.00% | |||||||
Munich Re Group [Member] | |||||||||
Net unsecured reinsurance balances | $ 112,841 | $ 117,460 | |||||||
% of Net Unsecured Reinsurance | 16.00% | 16.00% | |||||||
Hanover Ruckversicherungs AG [Member] | |||||||||
Net unsecured reinsurance balances | $ 101,835 | $ 101,652 | |||||||
% of Net Unsecured Reinsurance | 14.00% | 14.00% | |||||||
AXIS Reinsurance Company [Member] | |||||||||
Net unsecured reinsurance balances | $ 69,102 | $ 62,396 | |||||||
% of Net Unsecured Reinsurance | 10.00% | 8.00% | |||||||
Swiss Re Group [Member] | |||||||||
Net unsecured reinsurance balances | $ 37,519 | $ 40,772 | |||||||
% of Net Unsecured Reinsurance | 5.00% | 5.00% | |||||||
Transatlantic Reinsurance Company [Member] | |||||||||
Net unsecured reinsurance balances | $ 17,686 | $ 13,237 | |||||||
% of Net Unsecured Reinsurance | 3.00% | 2.00% | |||||||
Endurance Specialty Ins LTD [Member] | |||||||||
Net unsecured reinsurance balances | $ 15,163 | $ 18,469 | |||||||
% of Net Unsecured Reinsurance | 2.00% | 2.00% | |||||||
Partner Reinsurance Company Of The US [Member] | |||||||||
Net unsecured reinsurance balances | $ 12,261 | $ 16,925 | |||||||
% of Net Unsecured Reinsurance | 2.00% | 2.00% | |||||||
All Other Reinsurers [Member] | |||||||||
Net unsecured reinsurance balances | $ 111,266 | $ 106,672 | |||||||
% of Net Unsecured Reinsurance | 16.00% | 15.00% | |||||||
Remaining Unsecured Reinsurance, Net of Collateral [Member] | |||||||||
Net unsecured reinsurance balances | $ 365,472 | $ 355,170 | |||||||
SEC Schedule, 12-09, Allowance, Reinsurance Recoverable [Member] | |||||||||
Allowance For Reinsurance Recoverable | $ 4,500 | $ 4,600 | |||||||
|
Reinsurance (List of direct, assumed and ceded Reinsurance Amounts) (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 |
[1] | Sep. 30, 2018 |
Jun. 30, 2018 |
Mar. 31, 2018 |
Dec. 31, 2017 |
[1] | Sep. 30, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|||
Premiums Written: | |||||||||||||||
Direct | $ 2,890,633 | $ 2,733,459 | $ 2,577,259 | ||||||||||||
Assumed | 26,250 | 26,685 | 28,779 | ||||||||||||
Ceded premiums written | (402,597) | (389,503) | (368,750) | ||||||||||||
Net | 2,514,286 | 2,370,641 | 2,237,288 | ||||||||||||
Premiums Earned: | |||||||||||||||
Direct | 2,808,764 | 2,647,488 | 2,484,715 | ||||||||||||
Assumed | 25,831 | 25,831 | 28,214 | ||||||||||||
Ceded premiums earned | (398,366) | (382,292) | (363,357) | ||||||||||||
Total Net Premiums Earned | $ 625,288 | $ 614,277 | $ 604,836 | $ 591,828 | $ 590,088 | $ 572,055 | $ 568,030 | $ 560,854 | 2,436,229 | 2,291,027 | 2,149,572 | ||||
Loss and loss expense incurred: | |||||||||||||||
Direct | 1,706,951 | 1,570,678 | 1,560,356 | ||||||||||||
Assumed | 21,469 | 17,588 | 22,708 | ||||||||||||
Ceded loss and loss expense | (230,286) | (243,192) | (348,267) | ||||||||||||
Net | $ 1,498,134 | $ 1,345,074 | $ 1,234,797 | ||||||||||||
|
Reinsurance (Ceded Premiums and Losses Related to Flood Operations) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Percentage of NFIP claims ceded to the federal government | 100.00% | ||
Ceded premiums written | $ (402,597) | $ (389,503) | $ (368,750) |
Ceded premiums earned | (398,366) | (382,292) | (363,357) |
Ceded loss and loss expense | (230,286) | (243,192) | (348,267) |
National Flood Insurance Program [Member] | |||
Ceded premiums written | (248,053) | (241,345) | (232,245) |
Ceded premiums earned | (244,238) | (235,088) | (227,882) |
Ceded loss and loss expense | $ (144,967) | $ (160,922) | $ (239,891) |
Reserve for Loss and Loss Expense (Rollforward of Reserve for Loss and Loss Expense) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Gross reserve for loss and loss expense, at beginning of year | $ 3,771,240 | $ 3,691,719 | $ 3,517,728 |
Less: reinsurance recoverable on unpaid loss and loss expense, at beginning of year | 585,855 | 611,200 | 551,019 |
Net reserve for loss and loss expense, at beginning of year | 3,185,385 | 3,080,519 | 2,966,709 |
Incurred loss and loss expense for claims occurring in the current year | 1,527,997 | 1,384,266 | 1,300,565 |
Incurred loss and loss expense for claims occurring in the prior years | (29,863) | (39,192) | (65,768) |
Total incurred loss and loss expense | 1,498,134 | 1,345,074 | 1,234,797 |
Paid loss and loss expense for claims occurring in current year | 573,718 | 497,486 | 450,811 |
Paid loss and loss expense for claims occurring in prior years | 753,321 | 742,722 | 670,176 |
Total paid loss and loss expense | 1,327,039 | 1,240,208 | 1,120,987 |
Net reserve for loss and loss expense, at end of year | 3,356,480 | 3,185,385 | 3,080,519 |
Add: reinsurance recoverable on unpaid loss and loss expense, at end of year | 537,388 | 585,855 | 611,200 |
Gross reserve for loss and loss expense, at end of year | 3,893,868 | 3,771,240 | 3,691,719 |
Increase of net loss and loss expense reserves | 171,100 | 104,900 | 113,800 |
Anticipated recoveries for salvage and subrogation claims | $ 67,700 | $ 64,800 | $ 64,900 |
Reserve for Loss and Loss Expense (Reserve Loss Development) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Liability for Unpaid Claims and Claims Adjustment Expense, Claims Paid, Prior Years | $ 753,321 | $ 742,722 | $ 670,176 |
Favorable or adverse loss development | (29,863) | (39,192) | (65,768) |
Favorable or unfavorable loss development [Member] | |||
Liability for Unpaid Claims and Claims Adjustment Expense, Claims Paid, Prior Years | 29,900 | 39,200 | 65,800 |
Favorable or adverse loss development | (29,900) | (39,200) | (65,800) |
Favorable or unfavorable loss development [Member] | Casualty Insurance Product Line [Member] | |||
Favorable or adverse loss development | 41,500 | 48,600 | 69,000 |
Favorable or unfavorable loss development [Member] | Property Insurance Product Line [Member] | |||
Favorable or adverse loss development | 11,600 | 9,400 | 3,200 |
Favorable or unfavorable loss development [Member] | General Liability [Member] | |||
Favorable or adverse loss development | (9,500) | (48,300) | (45,000) |
Favorable or unfavorable loss development [Member] | Commercial Automobile [Member] | |||
Favorable or adverse loss development | 36,700 | 35,600 | 25,300 |
Casualty Development | 37,500 | 36,000 | 25,000 |
Favorable or unfavorable loss development [Member] | Workers Compensation [Member] | |||
Favorable or adverse loss development | (83,000) | (52,300) | (56,000) |
Favorable or unfavorable loss development [Member] | Business Owners' Policies [Member] | |||
Favorable or adverse loss development | (1,500) | 1,900 | 1,800 |
Favorable or unfavorable loss development [Member] | Commercial Property [Member] | |||
Favorable or adverse loss development | 7,500 | 8,700 | 300 |
Favorable or unfavorable loss development [Member] | Homeowners [Member] | |||
Favorable or adverse loss development | 9,800 | 400 | 1,700 |
Favorable or unfavorable loss development [Member] | Personal Automobile [Member] | |||
Favorable or adverse loss development | 3,000 | 6,700 | 1,000 |
Favorable or unfavorable loss development [Member] | E&S Casualty Lines [Member] | |||
Favorable or adverse loss development | 12,000 | 10,000 | 6,000 |
Favorable or unfavorable loss development [Member] | E&S Property Lines [Member] | |||
Favorable or adverse loss development | (4,800) | 100 | 1,200 |
Favorable or unfavorable loss development [Member] | Other Insurance Product Line [Member] | |||
Favorable or adverse loss development | $ (100) | $ (2,000) | $ (2,100) |
Reserve for Loss and Loss Expense (Exposure to Environmental Claims) (Details) - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
---|---|---|---|---|
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Loss and Loss expense reserves, Gross | $ 30,020 | $ 28,415 | $ 29,962 | $ 30,411 |
Liability for Asbestos and Environmental Claims, Net | 22,783 | $ 21,212 | $ 22,716 | $ 23,161 |
Asbestos Claim [Member] | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Loss and Loss expense reserves, Gross | 7,300 | |||
Liability for Asbestos and Environmental Claims, Net | 6,100 | |||
Landfill Sites Related Claims [Member] | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Loss and Loss expense reserves, Gross | 12,200 | |||
Liability for Asbestos and Environmental Claims, Net | 7,400 | |||
Leaking Underground Storage Tanks Claims [Member] | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Loss and Loss expense reserves, Gross | 10,500 | |||
Liability for Asbestos and Environmental Claims, Net | $ 9,300 |
Reserve for Loss and Loss Expense (Roll Forward of Gross and Net Asbestos and Net Environmental Incurred Losses and Loss Expenses and Related Reserves) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Liability for Claims and Claims Adjustment Expense [Line Items] | |||
Reserve for loss and loss expense at beginning of year, gross | $ 28,415 | $ 29,962 | $ 30,411 |
Incurred loss and loss expense, gross | 3,059 | 126 | 1,483 |
Less: loss and loss expense paid, gross | (1,454) | (1,673) | (1,932) |
Reserve for loss and loss expense at the end of year, gross | 30,020 | 28,415 | 29,962 |
Reserve for loss and loss expense at beginning of year, net | 21,212 | 22,716 | 23,161 |
Incurred loss and loss expense, net | 2,877 | 0 | 1,380 |
Less: loss and loss expense paid, net | (1,306) | (1,504) | (1,825) |
Reserve for loss and loss expense at the end of year, net | 22,783 | 21,212 | 22,716 |
Asbestos [Member] | |||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||
Reserve for loss and loss expense at beginning of year, gross | 7,577 | 7,847 | 8,024 |
Incurred loss and loss expense, gross | 0 | 0 | (77) |
Less: loss and loss expense paid, gross | (249) | (270) | (254) |
Reserve for loss and loss expense at the end of year, gross | 7,328 | 7,577 | 7,847 |
Reserve for loss and loss expense at beginning of year, net | 6,346 | 6,615 | 6,793 |
Incurred loss and loss expense, net | 0 | 0 | 77 |
Less: loss and loss expense paid, net | (249) | (269) | (255) |
Reserve for loss and loss expense at the end of year, net | 6,097 | 6,346 | 6,615 |
Enviromental [Member] | |||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||
Reserve for loss and loss expense at beginning of year, gross | 20,838 | 22,115 | 22,387 |
Incurred loss and loss expense, gross | 3,059 | 126 | 1,406 |
Less: loss and loss expense paid, gross | (1,205) | (1,403) | (1,678) |
Reserve for loss and loss expense at the end of year, gross | 22,692 | 20,838 | 22,115 |
Reserve for loss and loss expense at beginning of year, net | 14,866 | 16,101 | 16,368 |
Incurred loss and loss expense, net | 2,877 | 0 | 1,303 |
Less: loss and loss expense paid, net | (1,057) | (1,235) | (1,570) |
Reserve for loss and loss expense at the end of year, net | $ 16,686 | $ 14,866 | $ 16,101 |
Reserve for Loss and Loss Expense Reserve for Loss and Loss Expense (Claims Development) (Details) |
Dec. 31, 2018
USD ($)
|
Dec. 31, 2017
USD ($)
|
Dec. 31, 2016
USD ($)
|
Dec. 31, 2015
USD ($)
|
Dec. 31, 2014
USD ($)
|
Dec. 31, 2013
USD ($)
|
Dec. 31, 2012
USD ($)
|
Dec. 31, 2011
USD ($)
|
Dec. 31, 2010
USD ($)
|
Dec. 31, 2009
USD ($)
|
---|---|---|---|---|---|---|---|---|---|---|
Claims Development [Line Items] | ||||||||||
Net outstanding liabilities | $ 10,921,712,000 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | 8,066,344,000 | |||||||||
Liability for Unpaid Claims and Claims Adjustment Expense, Net | 3,216,999,000 | |||||||||
Reserve for loss and loss expense | 3,893,868,000 | $ 3,771,240,000 | ||||||||
Short-duration Insurance Contracts, Accident Year 2009 [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Net outstanding liabilities | 846,017,000 | 848,413,000 | $ 853,401,000 | $ 857,960,000 | $ 869,927,000 | $ 870,057,000 | $ 883,590,000 | $ 916,691,000 | $ 941,972,000 | $ 920,143,000 |
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 34,771,000 | |||||||||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | 85,707 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 791,281,000 | 784,713,000 | 775,885,000 | 760,589,000 | 736,100,000 | 695,249,000 | 634,902,000 | 540,982,000 | 442,417,000 | 277,275,000 |
Short-duration Insurance Contracts, Accident Year 2010 [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Net outstanding liabilities | 904,561,000 | 907,074,000 | 915,131,000 | 922,404,000 | 943,118,000 | 956,600,000 | 977,959,000 | 973,742,000 | 950,114,000 | |
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 42,224,000 | |||||||||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | 94,400 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 846,386,000 | 835,532,000 | 823,770,000 | 803,773,000 | 773,536,000 | 704,895,000 | 625,229,000 | 509,910,000 | 328,826,000 | |
Short-duration Insurance Contracts, Accident Year 2011 [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Net outstanding liabilities | 1,013,115,000 | 1,019,351,000 | 1,023,726,000 | 1,033,518,000 | 1,056,107,000 | 1,062,233,000 | 1,061,667,000 | 1,042,576,000 | ||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 50,251,000 | |||||||||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | 104,677 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 940,626,000 | 924,111,000 | 901,801,000 | 852,202,000 | 782,655,000 | 692,730,000 | 585,867,000 | 391,944,000 | ||
Short-duration Insurance Contracts, Accident Year 2012 [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Net outstanding liabilities | 973,411,000 | 973,644,000 | 973,089,000 | 998,028,000 | 1,020,655,000 | 1,071,290,000 | 1,065,437,000 | |||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 66,071,000 | |||||||||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | 103,949 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 879,372,000 | 856,195,000 | 810,135,000 | 743,742,000 | 651,544,000 | 555,819,000 | 378,067,000 | |||
Short-duration Insurance Contracts, Accident Year 2013 [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Net outstanding liabilities | 987,763,000 | 1,002,316,000 | 1,021,007,000 | 1,047,230,000 | 1,062,045,000 | 1,044,142,000 | ||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 86,250,000 | |||||||||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | 91,084 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 872,331,000 | 833,823,000 | 748,758,000 | 644,475,000 | 518,872,000 | 335,956,000 | ||||
Short-duration Insurance Contracts, Accident Year 2014 [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Net outstanding liabilities | 1,104,218,000 | 1,124,014,000 | 1,146,990,000 | 1,133,798,000 | 1,107,513,000 | |||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 117,760,000 | |||||||||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | 94,774 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 936,425,000 | 855,959,000 | 736,154,000 | 614,075,000 | 405,898,000 | |||||
Short-duration Insurance Contracts, Accident Year 2015 [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Net outstanding liabilities | 1,138,313,000 | 1,144,830,000 | 1,130,513,000 | 1,114,081,000 | ||||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 175,271,000 | |||||||||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | 93,673 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 845,868,000 | 725,385,000 | 581,203,000 | 376,641,000 | ||||||
Short-duration Insurance Contracts, Accident Year 2016 [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Net outstanding liabilities | 1,227,142,000 | 1,203,634,000 | 1,188,608,000 | |||||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 319,825,000 | |||||||||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | 93,724 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 764,331,000 | 617,958,000 | 387,272,000 | |||||||
Short-duration Insurance Contracts, Accident Year 2017 [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Net outstanding liabilities | 1,313,372,000 | 1,270,110,000 | ||||||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 471,978,000 | |||||||||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | 96,426 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 678,453,000 | 433,440,000 | ||||||||
Short-duration Insurance Contracts, Accident Year 2018 [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Net outstanding liabilities | 1,413,800,000 | |||||||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 677,444,000 | |||||||||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | 96,408 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 511,271,000 | |||||||||
Short-Duration Insurance Contracts, Accident Years Prior to 2009 [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Liability for Unpaid Claims and Claims Adjustment Expense, Net | 361,631,000 | |||||||||
Standard Commercial Lines [Member] | General Liability [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Net outstanding liabilities | 2,361,691,000 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | 1,277,379,000 | |||||||||
Liability for Unpaid Claims and Claims Adjustment Expense, Net | 1,175,230,000 | |||||||||
Standard Commercial Lines [Member] | Workers Compensation [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Net outstanding liabilities | 1,844,096,000 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | 1,216,045,000 | |||||||||
Liability for Unpaid Claims and Claims Adjustment Expense, Net | 873,882,000 | |||||||||
Standard Commercial Lines [Member] | Commercial Automobile [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Net outstanding liabilities | 2,340,518,000 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | 1,812,040,000 | |||||||||
Liability for Unpaid Claims and Claims Adjustment Expense, Net | 532,320,000 | |||||||||
Standard Commercial Lines [Member] | Business Owners' Policies [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Net outstanding liabilities | 499,967,000 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | 422,006,000 | |||||||||
Liability for Unpaid Claims and Claims Adjustment Expense, Net | 85,744,000 | |||||||||
Standard Commercial Lines [Member] | Commercial Property [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Net outstanding liabilities | 1,222,005,000 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | 1,163,094,000 | |||||||||
Liability for Unpaid Claims and Claims Adjustment Expense, Net | 58,980,000 | |||||||||
Standard Commercial Lines [Member] | Short-duration Insurance Contracts, Accident Year 2009 [Member] | General Liability [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Net outstanding liabilities | 203,176,000 | 201,568,000 | 205,741,000 | 206,387,000 | 211,243,000 | 212,947,000 | 223,146,000 | 233,530,000 | 241,625,000 | 237,913,000 |
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 15,951,000 | |||||||||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | 13,873 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 183,263,000 | 180,621,000 | 176,316,000 | 166,767,000 | 151,920,000 | 130,554,000 | 103,213,000 | 64,970,000 | 37,143,000 | 14,346,000 |
Standard Commercial Lines [Member] | Short-duration Insurance Contracts, Accident Year 2009 [Member] | Workers Compensation [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Net outstanding liabilities | 205,125,000 | 208,142,000 | 208,611,000 | 212,536,000 | 216,992,000 | 210,756,000 | 210,109,000 | 213,036,000 | 215,946,000 | 197,504,000 |
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 18,242,000 | |||||||||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | 12,218 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 171,205,000 | 167,894,000 | 164,336,000 | 160,529,000 | 154,726,000 | 145,417,000 | 133,116,000 | 117,019,000 | 87,299,000 | 37,885,000 |
Standard Commercial Lines [Member] | Short-duration Insurance Contracts, Accident Year 2009 [Member] | Commercial Automobile [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Net outstanding liabilities | 161,057,000 | 161,300,000 | 161,923,000 | 161,251,000 | 162,911,000 | 166,682,000 | 169,858,000 | 182,724,000 | 191,079,000 | 199,541,000 |
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 574,000 | |||||||||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | 24,749 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 160,456,000 | 160,013,000 | 159,723,000 | 158,303,000 | 155,560,000 | 149,949,000 | 137,564,000 | 113,697,000 | 94,406,000 | 63,126,000 |
Standard Commercial Lines [Member] | Short-duration Insurance Contracts, Accident Year 2009 [Member] | Business Owners' Policies [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Net outstanding liabilities | 44,028,000 | 43,933,000 | 44,273,000 | 44,299,000 | 44,938,000 | 43,553,000 | 43,828,000 | 46,645,000 | 51,762,000 | 48,535,000 |
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 323,000 | |||||||||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | 3,474 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 43,596,000 | 43,547,000 | 43,448,000 | 43,358,000 | 42,895,000 | 40,052,000 | 36,073,000 | 32,689,000 | 29,612,000 | 18,915,000 |
Standard Commercial Lines [Member] | Short-duration Insurance Contracts, Accident Year 2009 [Member] | Commercial Property [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Net outstanding liabilities | 80,410,000 | 80,416,000 | 80,545,000 | 80,558,000 | 80,455,000 | 80,774,000 | 82,014,000 | 82,025,000 | 82,124,000 | 82,619,000 |
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 2,000 | |||||||||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | 7,009 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 80,393,000 | 80,405,000 | 80,509,000 | 80,529,000 | 80,352,000 | 80,251,000 | 80,894,000 | 80,433,000 | 78,695,000 | 59,933,000 |
Standard Commercial Lines [Member] | Short-duration Insurance Contracts, Accident Year 2010 [Member] | General Liability [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Net outstanding liabilities | 206,146,000 | 202,394,000 | 208,968,000 | 211,619,000 | 222,328,000 | 237,154,000 | 242,499,000 | 228,680,000 | 215,208,000 | |
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 18,634,000 | |||||||||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | 12,696 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 183,988,000 | 178,179,000 | 172,394,000 | 161,487,000 | 143,360,000 | 113,050,000 | 80,018,000 | 46,201,000 | 15,726,000 | |
Standard Commercial Lines [Member] | Short-duration Insurance Contracts, Accident Year 2010 [Member] | Workers Compensation [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Net outstanding liabilities | 199,539,000 | 204,423,000 | 208,155,000 | 212,448,000 | 214,916,000 | 211,030,000 | 212,815,000 | 214,469,000 | 198,371,000 | |
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 22,614,000 | |||||||||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | 12,185 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 165,526,000 | 162,796,000 | 158,078,000 | 153,795,000 | 149,086,000 | 137,184,000 | 122,442,000 | 93,281,000 | 46,795,000 | |
Standard Commercial Lines [Member] | Short-duration Insurance Contracts, Accident Year 2010 [Member] | Commercial Automobile [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Net outstanding liabilities | 173,080,000 | 173,471,000 | 173,157,000 | 172,969,000 | 179,854,000 | 181,923,000 | 187,778,000 | 189,305,000 | 187,562,000 | |
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 762,000 | |||||||||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | 25,406 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 171,693,000 | 169,793,000 | 169,100,000 | 167,227,000 | 163,513,000 | 146,913,000 | 128,015,000 | 99,254,000 | 68,098,000 | |
Standard Commercial Lines [Member] | Short-duration Insurance Contracts, Accident Year 2010 [Member] | Business Owners' Policies [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Net outstanding liabilities | 40,920,000 | 41,197,000 | 41,239,000 | 40,581,000 | 40,899,000 | 39,915,000 | 42,408,000 | 49,285,000 | 53,669,000 | |
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 381,000 | |||||||||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | 3,918 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 40,439,000 | 40,395,000 | 40,279,000 | 38,900,000 | 37,819,000 | 34,705,000 | 31,027,000 | 28,131,000 | 20,821,000 | |
Standard Commercial Lines [Member] | Short-duration Insurance Contracts, Accident Year 2010 [Member] | Commercial Property [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Net outstanding liabilities | 95,142,000 | 95,155,000 | 95,178,000 | 95,363,000 | 95,530,000 | 96,127,000 | 97,386,000 | 96,851,000 | 105,647,000 | |
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 4,000 | |||||||||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | 7,668 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 95,138,000 | 95,150,000 | 95,156,000 | 95,147,000 | 95,270,000 | 95,111,000 | 94,602,000 | 91,918,000 | 69,543,000 | |
Standard Commercial Lines [Member] | Short-duration Insurance Contracts, Accident Year 2011 [Member] | General Liability [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Net outstanding liabilities | 211,500,000 | 212,011,000 | 211,196,000 | 217,256,000 | 230,785,000 | 239,480,000 | 228,720,000 | 227,769,000 | ||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 20,973,000 | |||||||||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | 11,614 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 181,856,000 | 170,525,000 | 159,768,000 | 135,377,000 | 102,978,000 | 73,643,000 | 42,692,000 | 13,924,000 | ||
Standard Commercial Lines [Member] | Short-duration Insurance Contracts, Accident Year 2011 [Member] | Workers Compensation [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Net outstanding liabilities | 194,821,000 | 200,674,000 | 205,708,000 | 210,591,000 | 215,114,000 | 214,743,000 | 218,973,000 | 205,238,000 | ||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 26,226,000 | |||||||||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | 11,850 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 158,535,000 | 154,320,000 | 149,269,000 | 139,232,000 | 134,646,000 | 118,847,000 | 90,836,000 | 42,941,000 | ||
Standard Commercial Lines [Member] | Short-duration Insurance Contracts, Accident Year 2011 [Member] | Commercial Automobile [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Net outstanding liabilities | 173,507,000 | 174,514,000 | 174,882,000 | 172,617,000 | 178,421,000 | 182,325,000 | 183,044,000 | 174,006,000 | ||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 1,633,000 | |||||||||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | 25,398 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 170,913,000 | 170,000,000 | 166,082,000 | 157,291,000 | 142,507,000 | 121,576,000 | 99,196,000 | 69,849,000 | ||
Standard Commercial Lines [Member] | Short-duration Insurance Contracts, Accident Year 2011 [Member] | Business Owners' Policies [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Net outstanding liabilities | 58,735,000 | 58,456,000 | 58,966,000 | 59,256,000 | 58,242,000 | 51,047,000 | 57,083,000 | 54,469,000 | ||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 1,140,000 | |||||||||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | 4,959 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 57,365,000 | 57,045,000 | 55,856,000 | 52,114,000 | 46,444,000 | 41,011,000 | 37,362,000 | 27,884,000 | ||
Standard Commercial Lines [Member] | Short-duration Insurance Contracts, Accident Year 2011 [Member] | Commercial Property [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Net outstanding liabilities | 131,009,000 | 131,049,000 | 131,113,000 | 131,353,000 | 131,282,000 | 130,942,000 | 131,667,000 | 136,954,000 | ||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 6,000 | |||||||||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | 9,038 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 131,100,000 | 131,089,000 | 131,115,000 | 131,060,000 | 130,681,000 | 129,579,000 | 127,580,000 | 94,538,000 | ||
Standard Commercial Lines [Member] | Short-duration Insurance Contracts, Accident Year 2012 [Member] | General Liability [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Net outstanding liabilities | 180,659,000 | 175,268,000 | 175,305,000 | 194,144,000 | 215,083,000 | 245,561,000 | 238,979,000 | |||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 25,251,000 | |||||||||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | 9,960 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 144,451,000 | 130,866,000 | 109,448,000 | 89,008,000 | 56,580,000 | 35,241,000 | 13,030,000 | |||
Standard Commercial Lines [Member] | Short-duration Insurance Contracts, Accident Year 2012 [Member] | Workers Compensation [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Net outstanding liabilities | 183,314,000 | 187,359,000 | 188,596,000 | 195,197,000 | 199,360,000 | 208,036,000 | 203,864,000 | |||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 30,444,000 | |||||||||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | 11,613 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 143,281,000 | 139,477,000 | 132,052,000 | 122,755,000 | 108,211,000 | 86,909,000 | 40,911,000 | |||
Standard Commercial Lines [Member] | Short-duration Insurance Contracts, Accident Year 2012 [Member] | Commercial Automobile [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Net outstanding liabilities | 184,633,000 | 186,128,000 | 184,367,000 | 184,289,000 | 183,527,000 | 191,947,000 | 179,551,000 | |||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 2,259,000 | |||||||||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | 24,025 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 179,501,000 | 176,656,000 | 168,114,000 | 148,669,000 | 127,235,000 | 105,371,000 | 73,316,000 | |||
Standard Commercial Lines [Member] | Short-duration Insurance Contracts, Accident Year 2012 [Member] | Business Owners' Policies [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Net outstanding liabilities | 43,418,000 | 43,747,000 | 44,077,000 | 44,172,000 | 46,303,000 | 48,029,000 | 54,342,000 | |||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 430,000 | |||||||||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | 5,542 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 41,326,000 | 40,627,000 | 38,766,000 | 37,215,000 | 35,089,000 | 31,833,000 | 22,199,000 | |||
Standard Commercial Lines [Member] | Short-duration Insurance Contracts, Accident Year 2012 [Member] | Commercial Property [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Net outstanding liabilities | 117,225,000 | 117,170,000 | 117,102,000 | 116,658,000 | 115,375,000 | 114,224,000 | 118,464,000 | |||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 21,000 | |||||||||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | 8,515 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 116,671,000 | 116,625,000 | 116,291,000 | 114,699,000 | 111,503,000 | 108,834,000 | 81,528,000 | |||
Standard Commercial Lines [Member] | Short-duration Insurance Contracts, Accident Year 2013 [Member] | General Liability [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Net outstanding liabilities | 203,831,000 | 210,785,000 | 225,709,000 | 239,776,000 | 251,421,000 | 250,609,000 | ||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 35,971,000 | |||||||||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | 10,326 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 153,628,000 | 139,114,000 | 104,587,000 | 72,127,000 | 35,113,000 | 12,789,000 | ||||
Standard Commercial Lines [Member] | Short-duration Insurance Contracts, Accident Year 2013 [Member] | Workers Compensation [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Net outstanding liabilities | 162,787,000 | 166,662,000 | 173,160,000 | 187,658,000 | 194,318,000 | 199,794,000 | ||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 30,648,000 | |||||||||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | 11,372 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 124,130,000 | 118,669,000 | 109,739,000 | 96,376,000 | 74,568,000 | 36,829,000 | ||||
Standard Commercial Lines [Member] | Short-duration Insurance Contracts, Accident Year 2013 [Member] | Commercial Automobile [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Net outstanding liabilities | 207,975,000 | 210,410,000 | 207,994,000 | 209,197,000 | 205,282,000 | 188,289,000 | ||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 3,756,000 | |||||||||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | 25,556 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 200,750,000 | 189,626,000 | 169,850,000 | 140,015,000 | 109,893,000 | 76,469,000 | ||||
Standard Commercial Lines [Member] | Short-duration Insurance Contracts, Accident Year 2013 [Member] | Business Owners' Policies [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Net outstanding liabilities | 39,709,000 | 41,369,000 | 40,624,000 | 41,005,000 | 42,618,000 | 49,617,000 | ||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 1,404,000 | |||||||||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | 3,482 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 38,464,000 | 37,993,000 | 34,760,000 | 30,845,000 | 26,592,000 | 17,412,000 | ||||
Standard Commercial Lines [Member] | Short-duration Insurance Contracts, Accident Year 2013 [Member] | Commercial Property [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Net outstanding liabilities | 90,278,000 | 90,436,000 | 90,005,000 | 90,103,000 | 90,639,000 | 88,101,000 | ||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 28,000 | |||||||||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | 5,713 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 90,696,000 | 90,840,000 | 90,350,000 | 90,446,000 | 87,874,000 | 60,244,000 | ||||
Standard Commercial Lines [Member] | Short-duration Insurance Contracts, Accident Year 2014 [Member] | General Liability [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Net outstanding liabilities | 234,082,000 | 239,333,000 | 257,132,000 | 249,946,000 | 244,312,000 | |||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 57,041,000 | |||||||||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | 10,513 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 154,957,000 | 121,969,000 | 79,972,000 | 46,825,000 | 14,901,000 | |||||
Standard Commercial Lines [Member] | Short-duration Insurance Contracts, Accident Year 2014 [Member] | Workers Compensation [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Net outstanding liabilities | 164,420,000 | 172,515,000 | 182,579,000 | 187,065,000 | 199,346,000 | |||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 33,422,000 | |||||||||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | 10,488 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 119,392,000 | 113,626,000 | 100,876,000 | 78,944,000 | 35,924,000 | |||||
Standard Commercial Lines [Member] | Short-duration Insurance Contracts, Accident Year 2014 [Member] | Commercial Automobile [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Net outstanding liabilities | 218,172,000 | 219,925,000 | 216,824,000 | 212,725,000 | 200,534,000 | |||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 8,718,000 | |||||||||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | 27,528 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 202,821,000 | 180,701,000 | 148,884,000 | 117,169,000 | 80,810,000 | |||||
Standard Commercial Lines [Member] | Short-duration Insurance Contracts, Accident Year 2014 [Member] | Business Owners' Policies [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Net outstanding liabilities | 58,517,000 | 59,806,000 | 62,548,000 | 60,949,000 | 55,962,000 | |||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 2,959,000 | |||||||||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | 4,062 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 52,940,000 | 49,460,000 | 44,911,000 | 40,584,000 | 28,914,000 | |||||
Standard Commercial Lines [Member] | Short-duration Insurance Contracts, Accident Year 2014 [Member] | Commercial Property [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Net outstanding liabilities | 138,155,000 | 138,751,000 | 136,820,000 | 136,249,000 | 141,192,000 | |||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 57,000 | |||||||||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | 6,514 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 137,418,000 | 137,883,000 | 136,634,000 | 132,909,000 | 101,131,000 | |||||
Standard Commercial Lines [Member] | Short-duration Insurance Contracts, Accident Year 2015 [Member] | General Liability [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Net outstanding liabilities | 233,249,000 | 246,990,000 | 245,710,000 | 254,720,000 | ||||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 84,861,000 | |||||||||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | 10,253 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 116,804,000 | 78,668,000 | 39,978,000 | 14,665,000 | ||||||
Standard Commercial Lines [Member] | Short-duration Insurance Contracts, Accident Year 2015 [Member] | Workers Compensation [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Net outstanding liabilities | 179,642,000 | 183,604,000 | 194,639,000 | 193,729,000 | ||||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 34,940,000 | |||||||||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | 10,544 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 112,601,000 | 98,195,000 | 77,320,000 | 33,857,000 | ||||||
Standard Commercial Lines [Member] | Short-duration Insurance Contracts, Accident Year 2015 [Member] | Commercial Automobile [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Net outstanding liabilities | 259,495,000 | 253,074,000 | 240,958,000 | 220,994,000 | ||||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 19,192,000 | |||||||||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | 29,092 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 211,515,000 | 175,866,000 | 132,260,000 | 91,347,000 | ||||||
Standard Commercial Lines [Member] | Short-duration Insurance Contracts, Accident Year 2015 [Member] | Business Owners' Policies [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Net outstanding liabilities | 55,925,000 | 57,245,000 | 53,768,000 | 52,871,000 | ||||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 6,215,000 | |||||||||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | 3,952 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 46,571,000 | 42,710,000 | 36,014,000 | 24,189,000 | ||||||
Standard Commercial Lines [Member] | Short-duration Insurance Contracts, Accident Year 2015 [Member] | Commercial Property [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Net outstanding liabilities | 111,566,000 | 111,750,000 | 109,513,000 | 110,270,000 | ||||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 77,000 | |||||||||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | 6,401 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 110,994,000 | 109,829,000 | 106,182,000 | 79,048,000 | ||||||
Standard Commercial Lines [Member] | Short-duration Insurance Contracts, Accident Year 2016 [Member] | General Liability [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Net outstanding liabilities | 277,986,000 | 272,048,000 | 277,214,000 | |||||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 142,991,000 | |||||||||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | 10,213 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 89,431,000 | 46,549,000 | 15,684,000 | |||||||
Standard Commercial Lines [Member] | Short-duration Insurance Contracts, Accident Year 2016 [Member] | Workers Compensation [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Net outstanding liabilities | 176,248,000 | 184,946,000 | 196,774,000 | |||||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 56,258,000 | |||||||||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | 10,553 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 98,037,000 | 78,531,000 | 34,525,000 | |||||||
Standard Commercial Lines [Member] | Short-duration Insurance Contracts, Accident Year 2016 [Member] | Commercial Automobile [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Net outstanding liabilities | 285,302,000 | 274,367,000 | 255,187,000 | |||||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 46,407,000 | |||||||||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | 30,855 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 200,701,000 | 155,720,000 | 106,022,000 | |||||||
Standard Commercial Lines [Member] | Short-duration Insurance Contracts, Accident Year 2016 [Member] | Business Owners' Policies [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Net outstanding liabilities | 54,993,000 | 53,792,000 | 52,335,000 | |||||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 9,272,000 | |||||||||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | 3,823 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 39,973,000 | 36,848,000 | 24,655,000 | |||||||
Standard Commercial Lines [Member] | Short-duration Insurance Contracts, Accident Year 2016 [Member] | Commercial Property [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Net outstanding liabilities | 125,937,000 | 126,185,000 | 121,927,000 | |||||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 405,000 | |||||||||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | 6,727 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 122,930,000 | 118,789,000 | 83,966,000 | |||||||
Standard Commercial Lines [Member] | Short-duration Insurance Contracts, Accident Year 2017 [Member] | General Liability [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Net outstanding liabilities | 293,128,000 | 293,747,000 | ||||||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 202,925,000 | |||||||||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | 10,032 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 49,470,000 | 17,366,000 | ||||||||
Standard Commercial Lines [Member] | Short-duration Insurance Contracts, Accident Year 2017 [Member] | Workers Compensation [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Net outstanding liabilities | 184,306,000 | 195,202,000 | ||||||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 72,213,000 | |||||||||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | 10,745 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 82,216,000 | 40,375,000 | ||||||||
Standard Commercial Lines [Member] | Short-duration Insurance Contracts, Accident Year 2017 [Member] | Commercial Automobile [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Net outstanding liabilities | 329,389,000 | 301,274,000 | ||||||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 98,125,000 | |||||||||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | 32,122 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 178,823,000 | 117,287,000 | ||||||||
Standard Commercial Lines [Member] | Short-duration Insurance Contracts, Accident Year 2017 [Member] | Business Owners' Policies [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Net outstanding liabilities | 48,698,000 | 46,624,000 | ||||||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 13,087,000 | |||||||||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | 3,808 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 31,337,000 | 21,865,000 | ||||||||
Standard Commercial Lines [Member] | Short-duration Insurance Contracts, Accident Year 2017 [Member] | Commercial Property [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Net outstanding liabilities | 149,106,000 | 138,773,000 | ||||||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ (76,000) | |||||||||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | 6,850 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 142,338,000 | 99,047,000 | ||||||||
Standard Commercial Lines [Member] | Short-duration Insurance Contracts, Accident Year 2018 [Member] | General Liability [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Net outstanding liabilities | 317,934,000 | |||||||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 270,267,000 | |||||||||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | 8,741 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 19,531,000 | |||||||||
Standard Commercial Lines [Member] | Short-duration Insurance Contracts, Accident Year 2018 [Member] | Workers Compensation [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Net outstanding liabilities | 193,894,000 | |||||||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 98,015,000 | |||||||||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | 10,553 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 41,122,000 | |||||||||
Standard Commercial Lines [Member] | Short-duration Insurance Contracts, Accident Year 2018 [Member] | Commercial Automobile [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Net outstanding liabilities | 347,908,000 | |||||||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 164,906,000 | |||||||||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | 32,895 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 134,867,000 | |||||||||
Standard Commercial Lines [Member] | Short-duration Insurance Contracts, Accident Year 2018 [Member] | Business Owners' Policies [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Net outstanding liabilities | 55,024,000 | |||||||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 16,177,000 | |||||||||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | 3,823 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 29,995,000 | |||||||||
Standard Commercial Lines [Member] | Short-duration Insurance Contracts, Accident Year 2018 [Member] | Commercial Property [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Net outstanding liabilities | 183,177,000 | |||||||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 7,052,000 | |||||||||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | 7,695 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 135,416,000 | |||||||||
Standard Commercial Lines [Member] | Short-Duration Insurance Contracts, Accident Years Prior to 2009 [Member] | General Liability [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Liability for Unpaid Claims and Claims Adjustment Expense, Net | 90,918,000 | |||||||||
Standard Commercial Lines [Member] | Short-Duration Insurance Contracts, Accident Years Prior to 2009 [Member] | Workers Compensation [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Liability for Unpaid Claims and Claims Adjustment Expense, Net | 245,831,000 | |||||||||
Standard Commercial Lines [Member] | Short-Duration Insurance Contracts, Accident Years Prior to 2009 [Member] | Commercial Automobile [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Liability for Unpaid Claims and Claims Adjustment Expense, Net | 3,842,000 | |||||||||
Standard Commercial Lines [Member] | Short-Duration Insurance Contracts, Accident Years Prior to 2009 [Member] | Business Owners' Policies [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Liability for Unpaid Claims and Claims Adjustment Expense, Net | 7,783,000 | |||||||||
Standard Commercial Lines [Member] | Short-Duration Insurance Contracts, Accident Years Prior to 2009 [Member] | Commercial Property [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Liability for Unpaid Claims and Claims Adjustment Expense, Net | 69,000 | |||||||||
Standard Personal Lines [Member] | Personal Automobile [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Net outstanding liabilities | 1,064,912,000 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | 974,882,000 | |||||||||
Liability for Unpaid Claims and Claims Adjustment Expense, Net | 96,070,000 | |||||||||
Standard Personal Lines [Member] | Homeowners [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Net outstanding liabilities | 707,712,000 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | 682,713,000 | |||||||||
Liability for Unpaid Claims and Claims Adjustment Expense, Net | 31,106,000 | |||||||||
Standard Personal Lines [Member] | Short-duration Insurance Contracts, Accident Year 2009 [Member] | Personal Automobile [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Net outstanding liabilities | 103,303,000 | 103,348,000 | 103,412,000 | 103,393,000 | 103,866,000 | 104,734,000 | 103,908,000 | 105,033,000 | 103,319,000 | 93,808,000 |
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 146,000 | |||||||||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | 17,346 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 103,010,000 | 103,009,000 | 102,437,000 | 102,322,000 | 102,187,000 | 100,566,000 | 96,229,000 | 86,431,000 | 71,911,000 | 51,039,000 |
Standard Personal Lines [Member] | Short-duration Insurance Contracts, Accident Year 2009 [Member] | Homeowners [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Net outstanding liabilities | 40,500,000 | 40,451,000 | 40,457,000 | 40,465,000 | 40,400,000 | 61,927,000 | 40,313,000 | 42,609,000 | 44,511,000 | 47,636,000 |
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 70,000 | |||||||||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | 5,634 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 40,403,000 | 40,269,000 | 40,189,000 | 39,907,000 | 39,819,000 | 39,731,000 | 39,342,000 | 38,078,000 | 36,965,000 | $ 28,299,000 |
Standard Personal Lines [Member] | Short-duration Insurance Contracts, Accident Year 2010 [Member] | Personal Automobile [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Net outstanding liabilities | 106,887,000 | 107,054,000 | 107,224,000 | 107,405,000 | 107,490,000 | 109,515,000 | 112,346,000 | 110,075,000 | 103,340,000 | |
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 160,000 | |||||||||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | 20,822 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 106,722,000 | 106,733,000 | 106,453,000 | 105,849,000 | 104,061,000 | 101,540,000 | 95,300,000 | 82,490,000 | 58,786,000 | |
Standard Personal Lines [Member] | Short-duration Insurance Contracts, Accident Year 2010 [Member] | Homeowners [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Net outstanding liabilities | 62,402,000 | 62,392,000 | 62,339,000 | 62,402,000 | 62,462,000 | 97,761,000 | 63,285,000 | 67,525,000 | 68,373,000 | |
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 83,000 | |||||||||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | 9,132 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 62,283,000 | 62,272,000 | 62,241,000 | 62,227,000 | 62,155,000 | 61,106,000 | 60,295,000 | 58,638,000 | $ 43,699,000 | |
Standard Personal Lines [Member] | Short-duration Insurance Contracts, Accident Year 2011 [Member] | Personal Automobile [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Net outstanding liabilities | 113,921,000 | 113,988,000 | 113,830,000 | 114,241,000 | 112,993,000 | 113,686,000 | 116,164,000 | 113,232,000 | ||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 194,000 | |||||||||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | 22,700 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 113,664,000 | 113,551,000 | 112,732,000 | 111,085,000 | 105,068,000 | 93,878,000 | 82,102,000 | 61,323,000 | ||
Standard Personal Lines [Member] | Short-duration Insurance Contracts, Accident Year 2011 [Member] | Homeowners [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Net outstanding liabilities | 94,587,000 | 94,378,000 | 94,183,000 | 94,543,000 | 94,167,000 | 82,744,000 | 98,211,000 | 103,804,000 | ||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 131,000 | |||||||||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | 15,109 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 94,412,000 | 94,007,000 | 93,720,000 | 93,312,000 | 92,185,000 | 91,718,000 | 89,963,000 | 71,668,000 | ||
Standard Personal Lines [Member] | Short-duration Insurance Contracts, Accident Year 2012 [Member] | Personal Automobile [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Net outstanding liabilities | 109,795,000 | 110,300,000 | 110,294,000 | 109,324,000 | 109,832,000 | 114,921,000 | 113,771,000 | |||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 205,000 | |||||||||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | 22,332 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 109,447,000 | 109,355,000 | 107,890,000 | 102,977,000 | 94,842,000 | 82,729,000 | 63,704,000 | |||
Standard Personal Lines [Member] | Short-duration Insurance Contracts, Accident Year 2012 [Member] | Homeowners [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Net outstanding liabilities | 86,483,000 | 86,330,000 | 86,271,000 | 86,667,000 | 86,560,000 | 82,745,000 | 87,260,000 | |||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 237,000 | |||||||||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | 16,939 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 85,642,000 | 85,562,000 | 85,196,000 | 84,250,000 | 82,720,000 | 79,584,000 | 69,056,000 | |||
Standard Personal Lines [Member] | Short-duration Insurance Contracts, Accident Year 2013 [Member] | Personal Automobile [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Net outstanding liabilities | 107,680,000 | 107,759,000 | 106,703,000 | 106,225,000 | 109,620,000 | 108,417,000 | ||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 288,000 | |||||||||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | 22,373 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 106,679,000 | 105,131,000 | 100,528,000 | 92,637,000 | 80,861,000 | 61,384,000 | ||||
Standard Personal Lines [Member] | Short-duration Insurance Contracts, Accident Year 2013 [Member] | Homeowners [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Net outstanding liabilities | 72,148,000 | 71,714,000 | 72,145,000 | 71,494,000 | 72,528,000 | 73,670,000 | ||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 331,000 | |||||||||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | 7,747 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 72,197,000 | 71,776,000 | 69,775,000 | 67,838,000 | 65,528,000 | 50,664,000 | ||||
Standard Personal Lines [Member] | Short-duration Insurance Contracts, Accident Year 2014 [Member] | Personal Automobile [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Net outstanding liabilities | 106,821,000 | 107,452,000 | 106,757,000 | 109,325,000 | 102,250,000 | |||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 774,000 | |||||||||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | 22,504 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 104,055,000 | 99,173,000 | 92,589,000 | 83,739,000 | 62,519,000 | |||||
Standard Personal Lines [Member] | Short-duration Insurance Contracts, Accident Year 2014 [Member] | Homeowners [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Net outstanding liabilities | 83,539,000 | 83,844,000 | 83,637,000 | 82,461,000 | 80,111,000 | |||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 411,000 | |||||||||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | 8,770 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 82,583,000 | 81,664,000 | 79,751,000 | 76,007,000 | 61,561,000 | |||||
Standard Personal Lines [Member] | Short-duration Insurance Contracts, Accident Year 2015 [Member] | Personal Automobile [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Net outstanding liabilities | 99,570,000 | 100,214,000 | 99,698,000 | 96,387,000 | ||||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 2,572,000 | |||||||||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | 20,860 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 92,102,000 | 87,163,000 | 76,470,000 | 58,725,000 | ||||||
Standard Personal Lines [Member] | Short-duration Insurance Contracts, Accident Year 2015 [Member] | Homeowners [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Net outstanding liabilities | 74,723,000 | 76,559,000 | 76,400,000 | 76,637,000 | ||||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 1,172,000 | |||||||||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | 7,744 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 72,927,000 | 72,202,000 | 70,078,000 | 52,589,000 | ||||||
Standard Personal Lines [Member] | Short-duration Insurance Contracts, Accident Year 2016 [Member] | Personal Automobile [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Net outstanding liabilities | 100,202,000 | 98,032,000 | 92,727,000 | |||||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 6,252,000 | |||||||||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | 19,803 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 86,752,000 | 76,823,000 | 57,961,000 | |||||||
Standard Personal Lines [Member] | Short-duration Insurance Contracts, Accident Year 2016 [Member] | Homeowners [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Net outstanding liabilities | 62,391,000 | 60,931,000 | 60,105,000 | |||||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 1,837,000 | |||||||||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | 6,869 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 59,546,000 | 57,333,000 | 42,252,000 | |||||||
Standard Personal Lines [Member] | Short-duration Insurance Contracts, Accident Year 2017 [Member] | Personal Automobile [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Net outstanding liabilities | 105,139,000 | 101,880,000 | ||||||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 13,162,000 | |||||||||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | 20,679 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 82,730,000 | 62,854,000 | ||||||||
Standard Personal Lines [Member] | Short-duration Insurance Contracts, Accident Year 2017 [Member] | Homeowners [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Net outstanding liabilities | 67,978,000 | 59,167,000 | ||||||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 1,969,000 | |||||||||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | 7,299 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 63,290,000 | 45,466,000 | ||||||||
Standard Personal Lines [Member] | Short-duration Insurance Contracts, Accident Year 2018 [Member] | Personal Automobile [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Net outstanding liabilities | 111,594,000 | |||||||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 23,506,000 | |||||||||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | 21,748 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 69,721,000 | |||||||||
Standard Personal Lines [Member] | Short-duration Insurance Contracts, Accident Year 2018 [Member] | Homeowners [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Net outstanding liabilities | 62,961,000 | |||||||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 6,660,000 | |||||||||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | 7,062 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 49,430,000 | |||||||||
Standard Personal Lines [Member] | Short-Duration Insurance Contracts, Accident Years Prior to 2009 [Member] | Personal Automobile [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Liability for Unpaid Claims and Claims Adjustment Expense, Net | 6,040,000 | |||||||||
Standard Personal Lines [Member] | Short-Duration Insurance Contracts, Accident Years Prior to 2009 [Member] | Homeowners [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Liability for Unpaid Claims and Claims Adjustment Expense, Net | 6,107,000 | |||||||||
E&S Lines [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Reserve for loss and loss expense | 15,000,000 | |||||||||
E&S Lines [Member] | General Liability [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Net outstanding liabilities | 593,898,000 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | 263,529,000 | |||||||||
Liability for Unpaid Claims and Claims Adjustment Expense, Net | 330,467,000 | |||||||||
E&S Lines [Member] | Commercial Property [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Liability for Unpaid Claims and Claims Adjustment Expense, Net | 13,604,000 | |||||||||
E&S Lines [Member] | Short-duration Insurance Contracts, Accident Year 2009 [Member] | General Liability [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Net outstanding liabilities | 739,000 | 737,000 | 96,000 | 710,000 | 728,000 | 938,000 | 1,053,000 | 885,000 | ||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 0 | |||||||||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | 274 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 739,000 | 737,000 | 709,000 | 626,000 | 605,000 | 431,000 | 198,000 | 0 | ||
E&S Lines [Member] | Short-duration Insurance Contracts, Accident Year 2010 [Member] | General Liability [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Net outstanding liabilities | 5,168,000 | 4,932,000 | 3,055,000 | 3,831,000 | 4,299,000 | 3,369,000 | 4,106,000 | 3,294,000 | ||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 0 | |||||||||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | 813 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 4,908,000 | 4,610,000 | 4,513,000 | 4,078,000 | 3,574,000 | 2,570,000 | 1,218,000 | 0 | ||
E&S Lines [Member] | Short-duration Insurance Contracts, Accident Year 2011 [Member] | General Liability [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Net outstanding liabilities | 12,119,000 | 10,228,000 | 9,652,000 | 10,273,000 | 12,207,000 | 9,853,000 | 7,102,000 | 8,127,000 | ||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 276,000 | |||||||||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | 1,321 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 9,819,000 | 10,256,000 | 9,912,000 | 9,954,000 | 6,445,000 | 3,200,000 | 806,000 | $ 0 | ||
E&S Lines [Member] | Short-duration Insurance Contracts, Accident Year 2012 [Member] | General Liability [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Net outstanding liabilities | 46,444,000 | 45,988,000 | 46,165,000 | 46,149,000 | 43,175,000 | 42,621,000 | 42,367,000 | |||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 6,417,000 | |||||||||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | 2,022 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 38,298,000 | 36,278,000 | 32,343,000 | 25,064,000 | 16,430,000 | 7,914,000 | $ 3,722,000 | |||
E&S Lines [Member] | Short-duration Insurance Contracts, Accident Year 2013 [Member] | General Liability [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Net outstanding liabilities | 68,972,000 | 67,647,000 | 69,112,000 | 67,099,000 | 60,309,000 | 55,468,000 | ||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 14,175,000 | |||||||||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | 2,266 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 51,142,000 | 46,108,000 | 35,200,000 | 21,980,000 | 9,470,000 | $ 2,715,000 | ||||
E&S Lines [Member] | Short-duration Insurance Contracts, Accident Year 2014 [Member] | General Liability [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Net outstanding liabilities | 71,206,000 | 71,719,000 | 69,929,000 | 63,505,000 | 55,316,000 | |||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 14,097,000 | |||||||||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | 2,040 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 53,780,000 | 43,877,000 | 25,571,000 | 12,234,000 | $ 2,353,000 | |||||
E&S Lines [Member] | Short-duration Insurance Contracts, Accident Year 2015 [Member] | General Liability [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Net outstanding liabilities | 90,488,000 | 82,404,000 | 76,432,000 | 75,498,000 | ||||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 24,516,000 | |||||||||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | 2,746 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 50,712,000 | 29,389,000 | 13,057,000 | $ 3,036,000 | ||||||
E&S Lines [Member] | Short-duration Insurance Contracts, Accident Year 2016 [Member] | General Liability [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Net outstanding liabilities | 104,655,000 | 96,416,000 | 94,451,000 | |||||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 52,151,000 | |||||||||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | 2,732 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 33,950,000 | 16,195,000 | $ 3,720,000 | |||||||
E&S Lines [Member] | Short-duration Insurance Contracts, Accident Year 2017 [Member] | General Liability [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Net outstanding liabilities | 95,783,000 | 91,438,000 | ||||||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 66,321,000 | |||||||||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | 2,353 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 14,672,000 | $ 5,057,000 | ||||||||
E&S Lines [Member] | Short-duration Insurance Contracts, Accident Year 2018 [Member] | General Liability [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Net outstanding liabilities | 98,324,000 | |||||||||
Short-duration Insurance Contracts, Incurred but Not Reported (IBNR) Claims Liability, Net | $ 82,486,000 | |||||||||
Short-duration Insurance Contract, Cumulative Number of Reported Claims | 1,734 | |||||||||
Short-duration Insurance Contracts, Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 5,509,000 | |||||||||
E&S Lines [Member] | Short-Duration Insurance Contracts, Accident Years Prior to 2009 [Member] | General Liability [Member] | ||||||||||
Claims Development [Line Items] | ||||||||||
Liability for Unpaid Claims and Claims Adjustment Expense, Net | $ 98,000 |
Reserve for Loss and Loss Expense Reserve for Loss and Loss Expense (Reconciliation of Claims Development to Liability) (Details) - USD ($) $ in Thousands |
12 Months Ended | |||
---|---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Net outstanding liabilities | $ 1,498,134 | $ 1,345,074 | $ 1,234,797 | |
Liability for Unpaid Claims and Claims Adjustment Expense, Net | 3,216,999 | |||
Reinsurance Recoverable for Unpaid Claims and Claims Adjustments | 537,388 | 585,855 | 611,200 | $ 551,019 |
Short-duration Insurance Contracts, Liability for Unpaid Claims and Claims Adjustment Expense, Accumulated Unallocated Claim Adjustment Expense | 139,481 | |||
Liability for Claims and Claims Adjustment Expense | 3,893,868 | $ 3,771,240 | $ 3,691,719 | $ 3,517,728 |
General Liability [Member] | Standard Commercial Lines [Member] | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Liability for Unpaid Claims and Claims Adjustment Expense, Net | 1,175,230 | |||
Reinsurance Recoverable for Unpaid Claims and Claims Adjustments | 181,102 | |||
General Liability [Member] | E&S Lines [Member] | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Liability for Unpaid Claims and Claims Adjustment Expense, Net | 330,467 | |||
Reinsurance Recoverable for Unpaid Claims and Claims Adjustments | 21,898 | |||
Workers Compensation [Member] | Standard Commercial Lines [Member] | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Liability for Unpaid Claims and Claims Adjustment Expense, Net | 873,882 | |||
Reinsurance Recoverable for Unpaid Claims and Claims Adjustments | 220,683 | |||
Commercial Automobile [Member] | Standard Commercial Lines [Member] | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Liability for Unpaid Claims and Claims Adjustment Expense, Net | 532,320 | |||
Reinsurance Recoverable for Unpaid Claims and Claims Adjustments | 15,641 | |||
Business Owners' Policies [Member] | Standard Commercial Lines [Member] | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Liability for Unpaid Claims and Claims Adjustment Expense, Net | 85,744 | |||
Reinsurance Recoverable for Unpaid Claims and Claims Adjustments | 3,473 | |||
Commercial Property [Member] | Standard Commercial Lines [Member] | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Liability for Unpaid Claims and Claims Adjustment Expense, Net | 58,980 | |||
Reinsurance Recoverable for Unpaid Claims and Claims Adjustments | 12,620 | |||
Commercial Property [Member] | E&S Lines [Member] | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Liability for Unpaid Claims and Claims Adjustment Expense, Net | 13,604 | |||
Reinsurance Recoverable for Unpaid Claims and Claims Adjustments | 367 | |||
Other Commercial [Member] | Standard Commercial Lines [Member] | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Liability for Unpaid Claims and Claims Adjustment Expense, Net | 9,122 | |||
Reinsurance Recoverable for Unpaid Claims and Claims Adjustments | 2,909 | |||
Total Standard Commercial Lines [Member] | Standard Commercial Lines [Member] | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Liability for Unpaid Claims and Claims Adjustment Expense, Net | 2,735,278 | |||
Reinsurance Recoverable for Unpaid Claims and Claims Adjustments | 436,428 | |||
Personal Automobile [Member] | Standard Personal Lines [Member] | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Liability for Unpaid Claims and Claims Adjustment Expense, Net | 96,070 | |||
Reinsurance Recoverable for Unpaid Claims and Claims Adjustments | 45,572 | |||
Homeowners [Member] | Standard Personal Lines [Member] | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Liability for Unpaid Claims and Claims Adjustment Expense, Net | 31,106 | |||
Reinsurance Recoverable for Unpaid Claims and Claims Adjustments | 1,346 | |||
Other Personal [Member] | Standard Personal Lines [Member] | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Liability for Unpaid Claims and Claims Adjustment Expense, Net | 10,474 | |||
Reinsurance Recoverable for Unpaid Claims and Claims Adjustments | 31,777 | |||
Standard Personal Lines [Member] | Standard Personal Lines [Member] | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Liability for Unpaid Claims and Claims Adjustment Expense, Net | 137,650 | |||
Reinsurance Recoverable for Unpaid Claims and Claims Adjustments | 78,695 | |||
Total E&S Lines [Member] | E&S Lines [Member] | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Liability for Unpaid Claims and Claims Adjustment Expense, Net | 344,071 | |||
Reinsurance Recoverable for Unpaid Claims and Claims Adjustments | $ 22,265 |
Reserve for Loss and Loss Expense Reserve for Loss and Loss Expense (Historical Claims Duration) (Details) |
Dec. 31, 2018 |
---|---|
General Liability [Member] | Standard Commercial Lines [Member] | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Short-duration Insurance Contracts, Historical Claims Duration, Year One | 6.50% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Two | 12.20% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Three | 15.30% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Four | 17.00% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Five | 14.50% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Six | 9.80% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Seven | 6.30% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Eight | 4.80% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Nine | 2.70% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Ten | 1.10% |
General Liability [Member] | E&S Lines [Member] | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Short-duration Insurance Contracts, Historical Claims Duration, Year One | 5.00% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Two | 11.40% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Three | 17.10% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Four | 21.40% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Five | 15.40% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Six | 8.60% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Seven | 5.40% |
Workers Compensation [Member] | Standard Commercial Lines [Member] | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Short-duration Insurance Contracts, Historical Claims Duration, Year One | 21.20% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Two | 24.30% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Three | 13.20% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Four | 8.30% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Five | 5.40% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Six | 3.90% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Seven | 2.40% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Eight | 2.30% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Nine | 1.40% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Ten | 1.10% |
Commercial Automobile [Member] | Standard Commercial Lines [Member] | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Short-duration Insurance Contracts, Historical Claims Duration, Year One | 37.90% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Two | 17.30% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Three | 14.50% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Four | 13.10% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Five | 9.50% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Six | 4.00% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Seven | 1.60% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Eight | 0.80% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Nine | 0.70% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Ten | 0.40% |
Business Owners' Policies [Member] | Standard Commercial Lines [Member] | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Short-duration Insurance Contracts, Historical Claims Duration, Year One | 47.30% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Two | 19.90% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Three | 8.30% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Four | 8.30% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Five | 7.40% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Six | 4.30% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Seven | 1.70% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Eight | 0.50% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Nine | 0.20% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Ten | 1.10% |
Commercial Property [Member] | Standard Commercial Lines [Member] | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Short-duration Insurance Contracts, Historical Claims Duration, Year One | 70.70% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Two | 25.20% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Three | 2.70% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Four | 1.10% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Five | 0.20% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Six | 0.10% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Seven | 0.00% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Eight | 0.00% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Nine | 0.00% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Ten | 0.00% |
Personal Automobile [Member] | Standard Personal Lines [Member] | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Short-duration Insurance Contracts, Historical Claims Duration, Year One | 57.10% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Two | 18.50% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Three | 10.50% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Four | 7.20% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Five | 4.30% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Six | 1.50% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Seven | 0.40% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Eight | 0.10% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Nine | 0.20% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Ten | 0.00% |
Homeowners [Member] | Standard Personal Lines [Member] | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Short-duration Insurance Contracts, Historical Claims Duration, Year One | 72.30% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Two | 20.30% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Three | 3.10% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Four | 1.80% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Five | 1.40% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Six | 0.40% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Seven | 0.20% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Eight | 0.10% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Nine | 0.10% |
Short-duration Insurance Contracts, Historical Claims Duration, Year Ten | 0.10% |
Indebtedness Indebtedness (Schedule of Long-Term Debt) (Details) - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Three Point Zero Three Percent Borrowing From Federal Home Loan Bank Due December 16, 2026 [Member] | ||
Schedule of Debt Instruments [Line Items] | ||
Debt Discount and Unamortized Issuance Costs | $ 0 | |
Interest Rate | 3.03% | |
Long-term Debt, Gross | $ 60,000 | |
Long-term Debt | 60,000 | $ 60,000 |
One Point Fifty Six Percent Borrowing From Federal Home Loan Bank Due August 16, 2021 [Member] | ||
Schedule of Debt Instruments [Line Items] | ||
Debt Discount and Unamortized Issuance Costs | $ 0 | |
Interest Rate | 1.56% | |
Long-term Debt, Gross | $ 25,000 | |
Long-term Debt | 25,000 | 25,000 |
One Point Sixty One Percent Borrowing From Federal Home Loan Bank Due July 21, 2021 [Member] | ||
Schedule of Debt Instruments [Line Items] | ||
Debt Discount and Unamortized Issuance Costs | $ 0 | |
Interest Rate | 1.61% | |
Long-term Debt, Gross | $ 25,000 | |
Long-term Debt | 25,000 | 25,000 |
Five Point Eight Hundred Seventy Five Percent Senior Notes [Member] | ||
Schedule of Debt Instruments [Line Items] | ||
Debt Discount and Unamortized Issuance Costs | $ (4,229) | |
Interest Rate | 5.875% | |
Long-term Debt, Gross | $ 185,000 | |
Long-term Debt | 180,771 | 180,430 |
Six Point Seventy Percent Senior Notes [Member] | ||
Schedule of Debt Instruments [Line Items] | ||
Debt Discount and Unamortized Issuance Costs | $ (931) | |
Interest Rate | 6.70% | |
Long-term Debt, Gross | $ 100,000 | |
Long-term Debt | 99,069 | 99,011 |
Seven Point Twenty Five Percent Senior Notes [Member] | ||
Schedule of Debt Instruments [Line Items] | ||
Debt Discount and Unamortized Issuance Costs | $ (300) | |
Interest Rate | 7.25% | |
Long-term Debt, Gross | $ 50,000 | |
Long-term Debt | 49,700 | 49,675 |
Long-term Debt [Member] | ||
Schedule of Debt Instruments [Line Items] | ||
Debt Discount and Unamortized Issuance Costs | (5,460) | |
Long-term Debt, Gross | 445,000 | |
Long-term Debt | $ 439,540 | $ 439,116 |
Indebtedness (Narrative) (Details) $ in Thousands |
3 Months Ended | 12 Months Ended | ||||
---|---|---|---|---|---|---|
Dec. 31, 2005
USD ($)
|
Dec. 31, 2018
USD ($)
|
Dec. 31, 2017
USD ($)
|
Mar. 31, 2016
USD ($)
|
Mar. 31, 2013
USD ($)
|
Dec. 31, 2004
USD ($)
|
|
Federal Home Loan Bank Advances | $ 45,000 | |||||
Maximum borrowing percentage | 10.00% | |||||
Borrowing threshold of FHLBI | 20 | |||||
Net proceeds from the issuance | 15,000 | |||||
Five Point Eight Hundred Seventy Five Percent Senior Notes Due 2043 [Member] | ||||||
Aggregate principal amount of notes | $ 185,000 | |||||
Bond proceeds to Insurance Subsidiaries as capital | $ 57,100 | |||||
Long-term Debt, Gross | $ 185,000 | |||||
Interest Rate | 5.875% | |||||
Redemption Of Seven Point Fifty Percent Junior Notes [Member] | ||||||
Aggregate principal amount of notes | $ 100,000 | |||||
Interest Rate | 7.50% | |||||
Six Point Seventy Percent Senior Notes due 2035 [Member] | ||||||
Acceleration of principal | $ 10,000 | |||||
Aggregate principal amount of notes | $ 100,000 | |||||
Discount for notes issued | $ 700 | |||||
Effective yield | 6.754% | |||||
Net proceeds from the issuance | $ 50,000 | |||||
Long-term Debt, Gross | $ 100,000 | |||||
Interest Rate | 6.70% | |||||
Seven Point Twenty Five Percent Senior Notes due 2034 [Member] | ||||||
Acceleration of principal | $ 10,000 | |||||
Aggregate principal amount of notes | $ 50,000 | |||||
Discount for notes issued | $ 100 | |||||
Effective yield | 7.27% | |||||
Bond proceeds to Insurance Subsidiaries as capital | $ 25,000 | |||||
Long-term Debt, Gross | $ 50,000 | |||||
Interest Rate | 7.25% | |||||
Line of Credit expires Dec.1, 2020 [Member] | ||||||
Line of credit borrowing capacity | $ 30,000 | |||||
Line of credit, maximum borrowing capacity | 50,000 | |||||
Acceleration of principal | 20,000 | |||||
One Point Sixty One Percent Borrowing From Federal Home Loan Bank Due July 21, 2021 [Member] | ||||||
Long-term Debt, Gross | $ 25,000 | |||||
Interest Rate | 1.61% | |||||
One Point Fifty Six Percent Borrowing From Federal Home Loan Bank Due August 16, 2021 [Member] | ||||||
Long-term Debt, Gross | $ 25,000 | |||||
Interest Rate | 1.56% | |||||
One Point Seventy Five Percent Borrowing From Federal Home Loan Bank Due March 20, 2018 [Member] | ||||||
Federal Home Loan Bank Advances | $ 75,000 | |||||
Federal Home Loan Bank, Advances, Interest Rate | 1.75% | |||||
One Point Ninety Eight Percent Borrowing From Federal Home Loan Bank Due April 18, 2018 [Member] | ||||||
Federal Home Loan Bank Advances | $ 55,000 | |||||
Federal Home Loan Bank, Advances, Interest Rate | 1.98% | |||||
Federal Home Loan Bank of Indianapolis [Member] | ||||||
Aggregate investment in FHLBI | $ 2,800 | |||||
Federal Home Loan Bank of New York [Member] | ||||||
Aggregate investment in FHLBI | $ 2,700 | $ 2,600 |
Indebtedness (Covenants in the Line of Credit) (Details) - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|||
---|---|---|---|---|---|---|
Debt Disclosure [Abstract] | ||||||
Consolidated net worth, required | $ 1,300,000 | |||||
Statutory surplus, required | $ 750,000 | |||||
Debt-to-capitalization ratio, required | [1] | 35.00% | ||||
Consolidated net worth, actual | $ 1,791,802 | $ 1,712,957 | $ 1,531,370 | |||
Statutory surplus, actual | $ 1,768,400 | $ 1,672,900 | ||||
Debt-to-capitalization ratio, actual | [1] | 19.70% | ||||
|
Segment Information (Narrative) (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
|
Segment Reporting [Abstract] | ||
Number of Operating Segments | 4 | |
Goodwill balance for our Standard Commercial Lines reporting unit | $ 7,849 | $ 7,849 |
Percentage of net premiums written related to insurance policies written in New Jersey | 19.00% |
Segment Information (Revenue From Continuing Operations by Segment) (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 |
[1] | Sep. 30, 2018 |
Jun. 30, 2018 |
Mar. 31, 2018 |
Dec. 31, 2017 |
[1] | Sep. 30, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|||||||||||
Revenue from External Customer [Line Items] | |||||||||||||||||||||||
Net premiums earned | $ 625,288 | $ 614,277 | $ 604,836 | $ 591,828 | $ 590,088 | $ 572,055 | $ 568,030 | $ 560,854 | $ 2,436,229 | $ 2,291,027 | $ 2,149,572 | ||||||||||||
Other income | 1,542 | 2,538 | 3,179 | 2,179 | 2,190 | 1,994 | 3,291 | 3,241 | 9,438 | 10,716 | 8,881 | ||||||||||||
Net investment income | 54,109 | 52,443 | 45,553 | 43,231 | 42,587 | 40,446 | 41,430 | 37,419 | 195,336 | 161,882 | 130,754 | ||||||||||||
Total net realized and unrealized (losses) gains | (37,935) | [2] | (4,787) | [2] | (1,652) | [2] | (10,549) | [2] | (1,128) | [2] | 6,798 | [2] | 1,734 | [2] | (1,045) | [2] | (54,923) | 6,359 | (4,937) | ||||
Total investment revenues | 140,413 | 168,241 | 125,817 | ||||||||||||||||||||
Total revenues | $ 643,004 | $ 664,471 | $ 651,916 | $ 626,689 | $ 633,737 | $ 621,293 | $ 614,485 | $ 600,469 | 2,586,080 | 2,469,984 | 2,284,270 | ||||||||||||
Standard Commercial Lines [Member] | |||||||||||||||||||||||
Revenue from External Customer [Line Items] | |||||||||||||||||||||||
Other income | 8,180 | 9,488 | 7,782 | ||||||||||||||||||||
Total revenues | 1,920,402 | 1,797,987 | 1,673,265 | ||||||||||||||||||||
Standard Commercial Lines [Member] | Commercial Automobile [Member] | |||||||||||||||||||||||
Revenue from External Customer [Line Items] | |||||||||||||||||||||||
Net premiums earned | 493,093 | 442,818 | 398,942 | ||||||||||||||||||||
Standard Commercial Lines [Member] | Workers Compensation [Member] | |||||||||||||||||||||||
Revenue from External Customer [Line Items] | |||||||||||||||||||||||
Net premiums earned | 317,616 | 317,982 | 308,233 | ||||||||||||||||||||
Standard Commercial Lines [Member] | General Liability [Member] | |||||||||||||||||||||||
Revenue from External Customer [Line Items] | |||||||||||||||||||||||
Net premiums earned | 616,187 | 569,217 | 527,859 | ||||||||||||||||||||
Standard Commercial Lines [Member] | Commercial Property [Member] | |||||||||||||||||||||||
Revenue from External Customer [Line Items] | |||||||||||||||||||||||
Net premiums earned | 329,660 | 311,932 | 293,438 | ||||||||||||||||||||
Standard Commercial Lines [Member] | Business Owners' Policies [Member] | |||||||||||||||||||||||
Revenue from External Customer [Line Items] | |||||||||||||||||||||||
Net premiums earned | 103,412 | 100,266 | 97,754 | ||||||||||||||||||||
Standard Commercial Lines [Member] | Bonds Segment [Member] | |||||||||||||||||||||||
Revenue from External Customer [Line Items] | |||||||||||||||||||||||
Net premiums earned | 33,991 | 29,086 | 23,227 | ||||||||||||||||||||
Standard Commercial Lines [Member] | Other Commercial [Member] | |||||||||||||||||||||||
Revenue from External Customer [Line Items] | |||||||||||||||||||||||
Net premiums earned | 18,263 | 17,198 | 16,030 | ||||||||||||||||||||
Standard Personal Lines [Member] | |||||||||||||||||||||||
Revenue from External Customer [Line Items] | |||||||||||||||||||||||
Other income | 1,257 | 1,228 | 1,098 | ||||||||||||||||||||
Total revenues | 305,698 | 290,929 | 281,705 | ||||||||||||||||||||
Standard Personal Lines [Member] | Personal Automobile [Member] | |||||||||||||||||||||||
Revenue from External Customer [Line Items] | |||||||||||||||||||||||
Net premiums earned | 168,250 | 153,147 | 142,876 | ||||||||||||||||||||
Standard Personal Lines [Member] | Homeowners [Member] | |||||||||||||||||||||||
Revenue from External Customer [Line Items] | |||||||||||||||||||||||
Net premiums earned | 128,961 | 129,699 | 130,973 | ||||||||||||||||||||
Standard Personal Lines [Member] | Other Personal [Member] | |||||||||||||||||||||||
Revenue from External Customer [Line Items] | |||||||||||||||||||||||
Net premiums earned | 7,230 | 6,855 | 6,758 | ||||||||||||||||||||
Excess And Surplus Operations [Member] | |||||||||||||||||||||||
Revenue from External Customer [Line Items] | |||||||||||||||||||||||
Other income | 1 | 0 | 1 | ||||||||||||||||||||
Total revenues | 219,567 | 212,827 | 203,483 | ||||||||||||||||||||
Excess And Surplus Operations [Member] | Casualty Insurance Product Line [Member] | |||||||||||||||||||||||
Revenue from External Customer [Line Items] | |||||||||||||||||||||||
Net premiums earned | 164,313 | 157,366 | 151,638 | ||||||||||||||||||||
Excess And Surplus Operations [Member] | Property Insurance Product Line [Member] | |||||||||||||||||||||||
Revenue from External Customer [Line Items] | |||||||||||||||||||||||
Net premiums earned | $ 55,253 | $ 55,461 | $ 51,844 | ||||||||||||||||||||
|
Segment Information (Income From Continuing Operations, Before and After Federal Income Tax) (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 |
[1] | Sep. 30, 2018 |
Jun. 30, 2018 |
Mar. 31, 2018 |
Dec. 31, 2017 |
[1] | Sep. 30, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|||||||||||
Net investment income | $ 54,109 | $ 52,443 | $ 45,553 | $ 43,231 | $ 42,587 | $ 40,446 | $ 41,430 | $ 37,419 | $ 195,336 | $ 161,882 | $ 130,754 | ||||||||||||
Total net realized and unrealized (losses) gains | $ (37,935) | [2] | $ (4,787) | [2] | $ (1,652) | [2] | $ (10,549) | [2] | $ (1,128) | [2] | $ 6,798 | [2] | $ 1,734 | [2] | $ (1,045) | [2] | (54,923) | 6,359 | (4,937) | ||||
Total investment revenues | 140,413 | 168,241 | 125,817 | ||||||||||||||||||||
Tax on investment income | 19,560 | 45,588 | 30,621 | ||||||||||||||||||||
Total investment income, after federal income tax | $ 120,853 | $ 122,653 | $ 95,196 | ||||||||||||||||||||
Investments [Member] | |||||||||||||||||||||||
Return on Equity | 6.90% | 7.50% | 6.50% | ||||||||||||||||||||
Standard Commercial Lines [Member] | |||||||||||||||||||||||
Underwriting gain (loss), before federal income tax | $ 109,104 | $ 149,514 | $ 146,435 | ||||||||||||||||||||
Underwriting gain (loss), after federal income tax | $ 86,192 | $ 97,184 | $ 95,183 | ||||||||||||||||||||
Combined Ratio | 94.30% | 91.60% | 91.20% | ||||||||||||||||||||
Return on Equity | 4.90% | 6.10% | 6.40% | ||||||||||||||||||||
Standard Personal Lines [Member] | |||||||||||||||||||||||
Underwriting gain (loss), before federal income tax | $ 12,764 | $ 11,104 | $ 12,419 | ||||||||||||||||||||
Underwriting gain (loss), after federal income tax | $ 10,084 | $ 7,217 | $ 8,072 | ||||||||||||||||||||
Combined Ratio | 95.80% | 96.20% | 95.60% | ||||||||||||||||||||
Return on Equity | 0.60% | 0.40% | 0.60% | ||||||||||||||||||||
Excess And Surplus Operations [Member] | |||||||||||||||||||||||
Underwriting gain (loss), before federal income tax | $ (695) | $ (6,282) | $ (6,921) | ||||||||||||||||||||
Underwriting gain (loss), after federal income tax | $ (549) | $ (4,083) | $ (4,499) | ||||||||||||||||||||
Combined Ratio | 100.30% | 103.00% | 103.40% | ||||||||||||||||||||
Return on Equity | 0.00% | (0.30%) | (0.30%) | ||||||||||||||||||||
|
Segment Information (Reconciliation of Segment Results to Income from Continuing Operations, before Federal Income Tax (Details)) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 |
Sep. 30, 2018 |
Jun. 30, 2018 |
Mar. 31, 2018 |
Dec. 31, 2017 |
Sep. 30, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||
Total investment revenues | $ 140,413 | $ 168,241 | $ 125,817 | ||||||||
Interest expense | (24,419) | (24,354) | (22,771) | ||||||||
Corporate expenses | (25,446) | (36,255) | (35,024) | ||||||||
Income before federal income tax | $ 52,135 | $ 67,130 | $ 72,525 | $ 19,931 | $ 68,150 | $ 67,315 | $ 58,929 | $ 67,574 | 211,721 | 261,968 | 219,955 |
Standard Commercial Lines [Member] | |||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||
Underwriting gain (loss), before federal income tax | 109,104 | 149,514 | 146,435 | ||||||||
Standard Personal Lines [Member] | |||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||
Underwriting gain (loss), before federal income tax | 12,764 | 11,104 | 12,419 | ||||||||
Excess And Surplus Operations [Member] | |||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||
Underwriting gain (loss), before federal income tax | (695) | (6,282) | (6,921) | ||||||||
Operating Segments [Member] | |||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||
Total all segments | $ 261,586 | $ 322,577 | $ 277,750 |
Earnings Per Share (Reconciliation of EPS) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 |
[1] | Sep. 30, 2018 |
Jun. 30, 2018 |
Mar. 31, 2018 |
Dec. 31, 2017 |
[1] | Sep. 30, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|||
Basic EPS: [Abstract] | |||||||||||||||
Net income | $ 45,760 | $ 55,435 | $ 58,819 | $ 18,925 | $ 30,242 | $ 46,718 | $ 41,426 | $ 50,440 | $ 178,939 | $ 168,826 | $ 158,495 | ||||
Net income, basic shares | 58,950 | 58,458 | 57,889 | ||||||||||||
Basic net income per share | $ 0.77 | $ 0.94 | $ 1.00 | $ 0.32 | $ 0.52 | $ 0.80 | $ 0.71 | $ 0.87 | $ 3.04 | $ 2.89 | $ 2.74 | ||||
Effect of dilutive securities: [Abstract] | |||||||||||||||
Stock compensation plans, shares | 763 | 899 | 858 | ||||||||||||
Earnings Per Share, Diluted [Abstract] | |||||||||||||||
Net income | $ 45,760 | $ 55,435 | $ 58,819 | $ 18,925 | $ 30,242 | $ 46,718 | $ 41,426 | $ 50,440 | $ 178,939 | $ 168,826 | $ 158,495 | ||||
Shares net income, Diluted | 59,713 | 59,357 | 58,747 | ||||||||||||
Diluted net income per share | $ 0.76 | $ 0.93 | $ 0.99 | $ 0.32 | $ 0.51 | $ 0.79 | $ 0.70 | $ 0.85 | $ 3.00 | $ 2.84 | $ 2.70 | ||||
|
Federal Income Taxes (Reconciliation of Federal Income Tax on Income at the Corporate Rate to the Effective Tax Rate) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | 35.00% | |
Capital Loss Carrybacks | $ 3,800 | ||
Decrease in Discounted Loss Reserve | 125,000 | $ 35,000 | |
Provisional Increase to Deferred Tax Asset | 26,300 | 7,500 | |
Provisional Increase to Deferred Tax Asset Per Year | 3,300 | ||
Tax at statutory rate (21% in 2018 and 35% in 2017 and 2016) | 44,461 | 91,689 | $ 76,984 |
Tax-advantaged interest | (5,518) | (11,510) | (12,126) |
Dividends received deduction | (647) | (1,961) | (1,114) |
Federal Income Tax Expense Benefit Related to Executive Compensation | 2,279 | 0 | 121 |
Share-based compensation expense income tax benefit | (3,093) | (4,281) | 0 |
Tax Reform Deferred Tax Asset Impact | 0 | 20,205 | 0 |
Other | (4,700) | (1,000) | (2,405) |
Total federal income tax expense | $ 32,782 | $ 93,142 | $ 61,460 |
Federal Income Taxes (Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
|
Change in Net Deferred Federal Income Tax Assets | $ 21,600 | |
Net loss reserve discounting | 43,285 | $ 38,771 |
Net unearned premiums | 53,556 | 50,267 |
Employee benefits | 8,862 | 8,606 |
Long-term incentive compensation plans | 9,095 | 12,221 |
Temporary investment write-downs | 1,155 | 1,044 |
Net operating loss | 0 | 54 |
Other | 5,744 | 5,784 |
Total deferred tax assets | 121,697 | 116,747 |
Deferred policy acquisition costs | 53,049 | 47,484 |
Unrealized gains on investment securities | 502 | 26,183 |
Other investment-related items, net | 4,904 | 2,500 |
Accelerated depreciation and amortization | 9,702 | 8,590 |
Total deferred tax liabilities | 68,157 | 84,757 |
Deferred federal income tax | 53,540 | $ 31,990 |
Investments [Member] | ||
Change in Net Deferred Federal Income Tax Assets | $ 18,600 |
Retirement Plans (Retirement Savings Plan) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Retirement Savings Plan [Member] | |||
Defined Benefit Plan, Plan Assets, Contributions by Employer | $ 15.8 | $ 15.8 | $ 15.0 |
Retirement Plans (Deferred Compensation Plan) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Deferred Compensation Plan Contributions By Employer | $ 0.4 | $ 0.2 | $ 0.3 |
Retirement Plans (Funded Status of Retirement Income Plan and Retirement Life Plan) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Supplemental Employee Retirement Plan [Member] | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) | $ 400 | $ 400 | $ 500 |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation, beginning of year | 10,100 | ||
Benefit obligation, end of year | 9,500 | 10,100 | |
Retirement Income Plan [Member] | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) | (8,358) | (4,928) | 2,973 |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation, beginning of year | 364,411 | 330,588 | |
Service cost | 0 | 0 | 1,647 |
Interest cost | 12,428 | 12,490 | 12,336 |
Actuarial losses (gains) | (31,738) | 31,158 | |
Benefits paid fair value | (10,422) | (9,825) | |
Benefit obligation, end of year | 334,679 | 364,411 | 330,588 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of assets, beginning of year | 363,673 | 316,515 | |
Actual return on plan assets, net of expenses | (21,571) | 46,983 | |
Contributions by the employer to funded plans | 0 | 10,000 | |
Fair value of assets, end of year | 331,680 | 363,673 | 316,515 |
Funded status | (2,999) | (738) | |
Defined Benefit Plan, Amounts for Asset (Liability) Recognized in Statement of Financial Position [Abstract] | |||
Liabilities | (2,999) | (738) | |
Net pension liability, end of year | (2,999) | (738) | |
Defined Benefit Plan, Accumulated Other Comprehensive (Income) Loss, before Tax [Abstract] | |||
Net actuarial loss | 98,057 | 87,438 | |
Total | 98,057 | 87,438 | |
Weighted-Average Liability Asumptions | |||
Accumulated benefit obligation | $ 334,679 | $ 364,411 | |
Discount rate | 4.46% | 3.78% | |
Retirement Life Plan [Member] | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) | $ 300 | $ 300 | $ 300 |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation, beginning of year | 6,400 | ||
Benefit obligation, end of year | $ 5,800 | $ 6,400 |
Retirement Plans (Components of Net Periodic Benefit Cost and Other Amounts Recognized in Other Comprehensive Income) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Deferred Compensation Plan Contributions By Employer | $ 400 | $ 200 | $ 300 |
Net actuarial loss (gain) | 11,273 | 4,684 | 12,079 |
Reversal of amortization of net actuarial loss | (2,127) | (2,102) | (6,462) |
Retirement Income Plan [Member] | |||
Service cost | 0 | 0 | 1,647 |
Interest cost | 12,428 | 12,490 | 12,336 |
Expected return on plan assets | (22,767) | (19,419) | (17,309) |
Amortization of unrecognized actuarial loss | 1,981 | 2,001 | 6,299 |
Total net periodic cost | (8,358) | (4,928) | 2,973 |
Net actuarial loss (gain) | 12,600 | 3,594 | 11,316 |
Reversal of amortization of net actuarial loss | (1,981) | (2,001) | (6,299) |
Total recognized in other comprehensive income | 10,619 | 1,593 | 5,017 |
Total recognized in net periodic benefit cost and OCI | 2,261 | (3,335) | 7,990 |
Estimated net actuarial loss that will be amortized from AOCI into net periodic benefit cost | 2,600 | ||
Retirement Life Plan [Member] | |||
Total net periodic cost | 300 | 300 | 300 |
Supplemental Employee Retirement Plan [Member] | |||
Total net periodic cost | $ 400 | $ 400 | $ 500 |
Retirement Plans (Weighted-Average Expense Assumptions) (Details) |
3 Months Ended | 12 Months Ended | ||||
---|---|---|---|---|---|---|
Mar. 31, 2016 |
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|||
Discount rate | 4.12% | |||||
Expected return on plan assets | 6.50% | |||||
Retirement Income Plan [Member] | ||||||
Discount rate | 3.78% | 4.41% | 4.69% | |||
Expected return on plan assets | 6.36% | 6.24% | 6.37% | |||
Rate of compensation increase | [1] | 4.00% | 0.00% | 0.00% | 0.00% | |
|
Retirement Plans (Plan's Allocated Target Ranges and Actual Weighted Average Asset Allocation by Investment Categories) (Details) - USD ($) $ in Millions |
12 Months Ended | ||||
---|---|---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
||||
Plan Assets Redeployed into Risk Seeking Investments | $ 49 | ||||
Actual percentage | 100.00% | 100.00% | |||
Percent of Plan Assets Redeployed into Risk Seeking Investments | 15.00% | ||||
Percent Hedge Against Projected Benefit Obligation | 50.00% | ||||
Return Seeking Assets [Member] | |||||
Actual percentage | 43.00% | 58.00% | |||
Liability Hedging Assets [Member] | |||||
Actual percentage | 38.00% | 40.00% | |||
Short-term Investments Excluding Redeployment[Member] | |||||
Actual percentage | [1] | 5.00% | |||
Short-term Investments [Member] | |||||
Actual percentage | [1] | 19.00% | 2.00% | ||
Minimum [Member] | Return Seeking Assets [Member] | |||||
Defined Benefit Plan, Plan Assets, Investment Policy and Strategy, Description | 0.15 | ||||
Minimum [Member] | Liability Hedging Assets [Member] | |||||
Defined Benefit Plan, Plan Assets, Investment Policy and Strategy, Description | 0.35 | ||||
Minimum [Member] | Short-term Investments [Member] | |||||
Defined Benefit Plan, Plan Assets, Investment Policy and Strategy, Description | 0 | ||||
Maximum [Member] | Return Seeking Assets [Member] | |||||
Defined Benefit Plan, Plan Assets, Investment Policy and Strategy, Description | 0.7 | ||||
Maximum [Member] | Liability Hedging Assets [Member] | |||||
Defined Benefit Plan, Plan Assets, Investment Policy and Strategy, Description | 0.75 | ||||
Maximum [Member] | Short-term Investments [Member] | |||||
Defined Benefit Plan, Plan Assets, Investment Policy and Strategy, Description | 0.02 | ||||
|
Retirement Plans (Quantitative Disclosures of Retirement Income Plan's Invested Assets that are Measured at Fair Value on a Recurring Basis) (Details) - Retirement Income Plan [Member] - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
---|---|---|---|
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | $ 331,680 | $ 363,673 | $ 316,515 |
Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 331,834 | 363,075 | |
Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 300,725 | 327,427 | |
Significant Other Observable Inputs (Level 2) [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 1,482 | 1,615 | |
Significant Unobservable Inputs (Level 3) [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 0 | 980 | |
Extended Duration Fixed Income [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 146,837 | ||
Extended Duration Fixed Income [Member] | Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 146,837 | ||
Extended Duration Fixed Income [Member] | Significant Other Observable Inputs (Level 2) [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 0 | ||
Extended Duration Fixed Income [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 0 | ||
Global Asset Allocation Fund [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 41,309 | ||
Global Asset Allocation Fund [Member] | Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 41,309 | ||
Global Asset Allocation Fund [Member] | Significant Other Observable Inputs (Level 2) [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 0 | ||
Global Asset Allocation Fund [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 0 | ||
International equity [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 67,989 | ||
International equity [Member] | Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 67,989 | ||
International equity [Member] | Significant Other Observable Inputs (Level 2) [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 0 | ||
International equity [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 0 | ||
US Global Equity [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 66,353 | ||
US Global Equity [Member] | Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 66,353 | ||
US Global Equity [Member] | Significant Other Observable Inputs (Level 2) [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 0 | ||
US Global Equity [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 0 | ||
Global Equity [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 113,409 | 134,342 | |
Global Equity [Member] | Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 113,409 | 134,342 | |
Global Equity [Member] | Significant Other Observable Inputs (Level 2) [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 0 | 0 | |
Global Equity [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 0 | 0 | |
Real Assets [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 16,818 | 16,305 | |
Real Assets [Member] | Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Alternative Investments [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 0 | 0 | |
Real Assets [Member] | Significant Other Observable Inputs (Level 2) [Member] | Alternative Investments [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 0 | 0 | |
Real Assets [Member] | Significant Unobservable Inputs (Level 3) [Member] | Alternative Investments [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 0 | 0 | |
Private Equity Funds [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 878 | 1,096 | |
Private Equity Funds [Member] | Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Alternative Investments [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 0 | 0 | |
Private Equity Funds [Member] | Significant Other Observable Inputs (Level 2) [Member] | Alternative Investments [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 0 | 0 | |
Private Equity Funds [Member] | Significant Unobservable Inputs (Level 3) [Member] | Alternative Investments [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 0 | 0 | |
Private Credit Funds [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 262 | 460 | |
Private Credit Funds [Member] | Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Alternative Investments [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 0 | 0 | |
Private Credit Funds [Member] | Significant Other Observable Inputs (Level 2) [Member] | Alternative Investments [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 0 | 0 | |
Private Credit Funds [Member] | Significant Unobservable Inputs (Level 3) [Member] | Alternative Investments [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 0 | 0 | |
Hedge Funds [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 7,889 | 15,192 | |
Hedge Funds [Member] | Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Alternative Investments [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 0 | 0 | |
Hedge Funds [Member] | Significant Other Observable Inputs (Level 2) [Member] | Alternative Investments [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 0 | 0 | |
Hedge Funds [Member] | Significant Unobservable Inputs (Level 3) [Member] | Alternative Investments [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 0 | 0 | |
Alternative Investments [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 25,847 | 33,053 | |
Alternative Investments [Member] | Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Alternative Investments [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 0 | 0 | |
Alternative Investments [Member] | Significant Other Observable Inputs (Level 2) [Member] | Alternative Investments [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 0 | 0 | |
Alternative Investments [Member] | Significant Unobservable Inputs (Level 3) [Member] | Alternative Investments [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 0 | 0 | |
Other Private Assets [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 3,780 | 980 | |
Other Private Assets [Member] | Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 0 | 0 | |
Other Private Assets [Member] | Significant Other Observable Inputs (Level 2) [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 0 | 0 | |
Other Private Assets [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 0 | 980 | |
Total Private Assets [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 29,627 | 34,033 | |
Total Private Assets [Member] | Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 0 | 0 | |
Total Private Assets [Member] | Significant Other Observable Inputs (Level 2) [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 0 | 0 | |
Total Private Assets [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 0 | 980 | |
Return Seeking Assets [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 143,036 | 209,684 | |
Return Seeking Assets [Member] | Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 113,409 | 175,651 | |
Return Seeking Assets [Member] | Significant Other Observable Inputs (Level 2) [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 0 | 0 | |
Return Seeking Assets [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 0 | 980 | |
Fixed Income Securities [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 106,000 | ||
Fixed Income Securities [Member] | Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 106,000 | ||
Fixed Income Securities [Member] | Significant Other Observable Inputs (Level 2) [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 0 | ||
Fixed Income Securities [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 0 | ||
US Treasury Securities [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 18,528 | ||
US Treasury Securities [Member] | Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 18,528 | ||
US Treasury Securities [Member] | Significant Other Observable Inputs (Level 2) [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 0 | ||
US Treasury Securities [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 0 | ||
Short-term Investments [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 62,788 | 4,939 | |
Short-term Investments [Member] | Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 62,788 | 4,939 | |
Short-term Investments [Member] | Significant Other Observable Inputs (Level 2) [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 0 | 0 | |
Short-term Investments [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 0 | 0 | |
Deposit Administration Contracts [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 1,482 | 1,615 | |
Deposit Administration Contracts [Member] | Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 0 | 0 | |
Deposit Administration Contracts [Member] | Significant Other Observable Inputs (Level 2) [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 1,482 | 1,615 | |
Deposit Administration Contracts [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 0 | 0 | |
Liability Hedging Assets [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 124,528 | 146,837 | |
Liability Hedging Assets [Member] | Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 124,528 | 146,837 | |
Liability Hedging Assets [Member] | Significant Other Observable Inputs (Level 2) [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 0 | 0 | |
Liability Hedging Assets [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 0 | 0 | |
Cash And Short Term Investments [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 64,270 | 6,554 | |
Cash And Short Term Investments [Member] | Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1) [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 62,788 | 4,939 | |
Cash And Short Term Investments [Member] | Significant Other Observable Inputs (Level 2) [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 1,482 | 1,615 | |
Cash And Short Term Investments [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fair value, recurring [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | $ 0 | $ 0 |
Retirement Plans (Benefit Payments) (Details) - Retirement Income Plan [Member] $ in Thousands |
Dec. 31, 2018
USD ($)
|
---|---|
2019 | $ 13,920 |
2020 | 13,869 |
2021 | 15,026 |
2022 | 16,159 |
2023 | 17,134 |
2024 - 2028 | $ 99,197 |
Share-Based Payments (Summary of Shares Available for Issuance) (Details) |
Dec. 31, 2018
shares
|
---|---|
Omnibus Stock Plan 2014 [Member] | |
Schedule of Share-Based Compensation Shares Available for Issuance [Line Items] | |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 4,750,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 3,461,192 |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number | 864,478 |
Employee Stock [Member] | |
Schedule of Share-Based Compensation Shares Available for Issuance [Line Items] | |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 1,500,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 429,181 |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number | 0 |
Agent Stock Purchase Plan [Member] | |
Schedule of Share-Based Compensation Shares Available for Issuance [Line Items] | |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 3,000,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 1,776,359 |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number | 0 |
Shared-Based Payments (Summary of Retired Plans) (Details) |
Dec. 31, 2018
shares
|
---|---|
Omnibus Stock Plan [Member] | |
Schedule of Share-Based Compensation Retired Plans [Line Items] | |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 2,099,403 |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number | 174,003 |
Stock Compensation Plan For Non Employee Directors [Member] | |
Schedule of Share-Based Compensation Retired Plans [Line Items] | |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 65,770 |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number | 65,770 |
Stock Option Share Based Compensation [Member] | Omnibus Stock Plan [Member] | |
Schedule of Share-Based Compensation Retired Plans [Line Items] | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number | 126,735 |
Restricted Stock Units (RSUs) [Member] | Omnibus Stock Plan [Member] | |
Schedule of Share-Based Compensation Retired Plans [Line Items] | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number | 47,268 |
Share-Based Payments (Summary of the Restricted Stock Unit Transactions under Share-Based Payment Plans) (Details) - USD ($) $ / shares in Units, $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Cash Incentive Plan [Member] | |||
Weighted average remaining expense life | 9 months | ||
Share Based Compensation Liability Awards Amount Of Liability | $ 21.6 | $ 37.0 | |
Cash incentive unit payments made | $ 20.2 | $ 14.2 | $ 14.3 |
Restricted Stock Units (RSUs) [Member] | |||
Unvested RSU awards at December 31, 2017 | 865,587 | ||
Granted in 2018, number of shares | 303,550 | ||
Vested in 2018, number of shares | (303,606) | ||
Forfeited in 2018, number of shares | (19,226) | ||
Unvested RSU awards at December 31, 2018, number of shares | 846,305 | 865,587 | |
Unvested RSU awards at December 31, 2017, weighted average grant date fair value | $ 33.66 | ||
Granted in 2018, weighted average grant date fair value | 55.96 | $ 42.66 | $ 32.53 |
Vested in 2018, weighted average grant date value | 26.57 | ||
Forfeited in 2018, weighted average grant date fair value | 42.62 | ||
Unvested RSU awards at December 31, 2018, weighted average grant date fair value | $ 44.00 | $ 33.66 | |
Total unrecognized compensation cost related to unvested RSU awards | $ 11.0 | ||
Weighted average remaining expense life | 1 year 8 months | ||
Total intrinsic value of shares vested | $ 18.0 | $ 16.0 | $ 12.6 |
Dividend Equivalent Units [Member] | |||
Total intrinsic value of shares vested | $ 0.8 | $ 0.9 | $ 0.7 |
Share-Based Payments (Summary of Stock Option Transactions under Share-Based Payment Plans) (Details) - USD ($) $ / shares in Units, $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Outstanding at December 31, 2017, number of shares | 229,864 | ||
Granted in 2018, numbers of shares | 0 | ||
Exercised in 2018, number of shares | (103,129) | ||
Forfeited or expired 2018, number of shares | 0 | ||
Outstanding at December 31, 2018, number of shares | 126,735 | 229,864 | |
Exercisable at December 31, 2018, number of shares | 126,735 | ||
Outstanding at December 31, 2017, weighted average exercise price | $ 15.38 | ||
Granted in 2018, weighted average exercise price | 0.00 | ||
Exercised in 2018, weighted average exercise price | 16.62 | ||
Forfeited or expired 2018, weighted average exercise price | 0.00 | ||
Outstanding at December 31, 2018, weighted average exercise price | 14.37 | $ 15.38 | |
Exercisable as December 31, 2018, weighted average exercise price | $ 14.37 | ||
Outstanding at December 31, 2018, weighted average remaining contractual life in years | 9 months 20 days | ||
Exercisable at December 31, 2018, weighted average remaining contractual life in years | 9 months 20 days | ||
Outstanding at December 31, 2018, aggregate intrinsic value | $ 5,903 | ||
Exerciseable at December 31, 2018, aggregate intrinsic value | 5,903 | ||
Total intrinsic value of options exercised | $ 4,500 | $ 4,000 | $ 2,300 |
Shared-Based Payments (Summary of ESPP and ASPP Shares Issued) (Details) - shares |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Schedule of Share-Based Compensation ESPP and ASPP Shares Granted [Line Items] | |||
Stock Issued During Period Shares | 540,337 | 635,521 | 720,323 |
Employee Stock [Member] | |||
Schedule of Share-Based Compensation ESPP and ASPP Shares Granted [Line Items] | |||
Stock Issued During Period Shares | 70,448 | 75,093 | 88,432 |
Agent Stock Purchase Plan [Member] | |||
Schedule of Share-Based Compensation ESPP and ASPP Shares Granted [Line Items] | |||
Stock Issued During Period Shares | 41,134 | 49,794 | 69,867 |
Share-Based Payments (Weighted Average Assumptions for Employee Stock Purchase Plan and Other Options) (Details) - Employee Stock Purchase Plan [Member] |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Risk-free interest rate | 1.88% | 1.07% | 0.47% |
Expected term | 6 months | 6 months | 6 months |
Dividend yield | 1.30% | 1.30% | 1.70% |
Expected volatility | 18.00% | 24.00% | 31.00% |
Share-Based Payments (Weighted-Average Fair Value of Options and Stock Per Share) (Details) - $ / shares |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Restricted Stock Units (RSUs) [Member] | |||
Stock, weighted average grant date fair value | $ 55.96 | $ 42.66 | $ 32.53 |
Employee Stock Purchase Plan [Member] | |||
Options, weighted average grant date fair value | 2.67 | 2.73 | 2.63 |
15% of grant date market value | 8.50 | 7.06 | 5.23 |
Total ESPP | 11.17 | 9.79 | 7.86 |
Agent Stock Purchase Plan [Member] | |||
Stock, weighted average grant date fair value | $ 5.99 | $ 5.04 | $ 3.79 |
Shared-Based Payments (Summary of Share-Based Compensation Expense) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Disclosure of Share-Based Compensation Expenses [Abstract] | |||
Share-based compensation expense charged against net income, Before Tax | $ 19.3 | $ 31.2 | $ 30.3 |
Share-based compensation expense income tax benefit | (7.0) | (15.0) | (10.3) |
Share-based Compensation Expense, Net of Tax | $ 12.3 | $ 16.2 | $ 20.0 |
Related Party Transactions (Narrative) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Equity ownership percentage of director of parent of general independent retail insurance agency | 10.00% | ||
Equity Ownership Percentage Of Son Of Director Of Parent | 10.00% | ||
Direct premiums written | $ 2,890,633 | $ 2,733,459 | $ 2,577,259 |
Due to Related Parties, Current | 400 | 600 | |
Contributions to the Selective Insurance Group Foundation | 500 | 0 | 0 |
Costs and Expenses, Related Party | 2,000 | 2,000 | 400 |
Due to Related Parties | 1,000 | 500 | |
Investments | 5,960,651 | 5,685,179 | |
Related Party Insurance Agency [Member] | |||
Direct premiums written | 10,100 | 11,100 | 10,400 |
Commissions paid to Rue Insurance | $ 2,100 | 2,300 | 2,100 |
Vanguard Group [Member] | |||
Percentage Common Stock Owned by Related Party | 10.10% | ||
Related Party Transaction, Purchases from Related Party | $ 11,500 | ||
Investments | 10,500 | 0 | 0 |
Investment Income, Net | $ (400) | ||
BlackRock Inc [Member] | |||
Percentage Common Stock Owned by Related Party | 14.20% | ||
Investments | $ 800 | 500 | 500 |
Sale of Related Party Investments | 77,600 | ||
Related Party Transaction, Other Revenues from Transactions with Related Party | 1,100 | ||
Investment Income, Net | (2,300) | ||
Retirement Income Plan [Member] | Vanguard Group [Member] | |||
Investments | 0 | 86,300 | |
Investment Income, Net | (5,500) | (9,100) | (5,400) |
Retirement Income Plan [Member] | BlackRock Inc [Member] | |||
Investments | 131,900 | 134,300 | |
Investment Income, Net | $ 9,300 | $ (25,200) | $ (8,500) |
Commitments and Contingencies (Narrative) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Purchase amount of annuities | $ 21.0 | ||
Rental expense for operating leases for office space, equipment, and vehicles | $ 10.4 | $ 10.8 | $ 12.3 |
Capital Lease Agreements Expiration Period | 2022 | ||
Contractual Obligation Additional Investment in Alternative or Other Investments | $ 202.3 | ||
Common Stock [Member] | |||
Contractual Obligation | 17.8 | ||
Collateralized Loan Obligations [Member] | |||
Contractual Obligation | $ 40.4 |
Commitments and Contingencies (Future Minimum Rental Commitments) (Details) $ in Millions |
Dec. 31, 2018
USD ($)
|
---|---|
2019- Capital Leases | $ 0.7 |
2020- Capital Leases | 0.1 |
2021- Capital Leases | 0.0 |
2022- Capital Leases | 0.0 |
2023- Capital Leases | 0.0 |
After 2023- Capital Leases | 0.0 |
Total minimum payment required- Capital Leases | 0.8 |
2019- Operating Leases | 7.8 |
2020- Operating Leases | 7.4 |
2021- Operating Leases | 5.1 |
2022- Operating Leases | 3.6 |
2023- Operating Leases | 2.9 |
After 2023- Operating Leases | 9.7 |
Total minimum payment required- Operating Leases | 36.5 |
2019- Total Leases | 8.5 |
2020- Total Leases | 7.5 |
2021- Total Leases | 5.1 |
2022- Total Leases | 3.6 |
2023- Total Leases | 2.9 |
After 2023- Total Leases | 9.7 |
Total minimum payment required | $ 37.3 |
Statutory Financial Information, Capital Requirements and Restrictions on Dividends and Transfers of Funds (Statutory Financial Information) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Statutory unassigned surplus | $ 1,232.8 | $ 1,137.3 | |
Statutory surplus | 1,768.4 | 1,672.9 | |
Statutory net income | 210.6 | 221.2 | $ 202.3 |
Selective Insurace Company of America (SICA) [Member] | |||
Statutory unassigned surplus | 478.6 | 455.5 | |
Statutory surplus | 632.8 | 609.7 | |
Statutory net income | 78.0 | 84.6 | 72.2 |
Selective Way Insurance Company (SWIC) [Member] | |||
Statutory unassigned surplus | 300.2 | 276.1 | |
Statutory surplus | 349.3 | 325.1 | |
Statutory net income | 47.5 | 43.6 | 41.2 |
Selective Insurance Company of South Carolina (SICSC) [Member] | |||
Statutory unassigned surplus | 119.4 | 112.9 | |
Statutory surplus | 150.7 | 144.1 | |
Statutory net income | 16.5 | 17.9 | 17.4 |
Selective Insurance Company of the Southeast (SICSE) [Member] | |||
Statutory unassigned surplus | 92.2 | 86.2 | |
Statutory surplus | 117.7 | 111.8 | |
Statutory net income | 12.9 | 14.7 | 13.4 |
Selective Insurance Company of New York (SICNY) [Member] | |||
Statutory unassigned surplus | 86.5 | 78.8 | |
Statutory surplus | 114.2 | 106.5 | |
Statutory net income | 12.0 | 13.4 | 12.9 |
Selective Insurance Company of New England (SICNE) [Member] | |||
Statutory unassigned surplus | 19.9 | 16.1 | |
Statutory surplus | 50.0 | 46.3 | |
Statutory net income | 5.6 | 6.3 | 5.9 |
Selective Auto Insurance Company of New Jersey (SAICNJ) [Member] | |||
Statutory unassigned surplus | 50.3 | 42.1 | |
Statutory surplus | 93.2 | 84.9 | |
Statutory net income | 9.9 | 11.4 | 11.5 |
Mesa Underwriting Specialty Insurance Company (MUSIC) [Member] | |||
Statutory unassigned surplus | 23.0 | 21.4 | |
Statutory surplus | 91.5 | 89.9 | |
Statutory net income | 9.4 | 10.3 | 9.7 |
Selective Casualty Insurance Company (SCIC) [Member] | |||
Statutory unassigned surplus | 44.9 | 34.5 | |
Statutory surplus | 119.3 | 109.0 | |
Statutory net income | 13.3 | 13.4 | 12.6 |
Selective Fire and Casualty Insurance Company (SFCIC) [Member] | |||
Statutory unassigned surplus | 17.8 | 13.7 | |
Statutory surplus | 49.7 | 45.6 | |
Statutory net income | $ 5.5 | $ 5.6 | $ 5.5 |
Statutory Financial Information, Capital Requirements, and Restrictions on Dividends and Transfers of Funds (Dividends) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Total stockholders’ equity | $ 1,791,802 | $ 1,712,957 | $ 1,531,370 |
Ordinary dividends paid | 100,100 | ||
Maximum ordinary dividends to be paid in the next fiscal year | $ 210,000 | ||
Maximum borrowing percentage | 10.00% | ||
New Jersey Dividend Restriction | 10.00% | ||
New York Dividend Restriction on Insurer's Statutory Surplus | 10.00% | ||
New York Dividend Restriction on Adjusted Net Investment Income | 100.00% | ||
Selective Insurace Company of America (SICA) [Member] | |||
Ordinary dividends paid | $ 43,000 | ||
Maximum ordinary dividends to be paid in the next fiscal year | 78,000 | ||
Selective Way Insurance Company (SWIC) [Member] | |||
Ordinary dividends paid | 19,000 | ||
Maximum ordinary dividends to be paid in the next fiscal year | 47,500 | ||
Selective Insurance Company of South Carolina (SICSC) [Member] | |||
Ordinary dividends paid | 10,000 | ||
Maximum ordinary dividends to be paid in the next fiscal year | 16,500 | ||
Selective Insurance Company of the Southeast (SICSE) [Member] | |||
Ordinary dividends paid | 7,500 | ||
Maximum ordinary dividends to be paid in the next fiscal year | 12,900 | ||
Selective Insurance Company of New York (SICNY) [Member] | |||
Ordinary dividends paid | 4,500 | ||
Maximum ordinary dividends to be paid in the next fiscal year | 11,400 | ||
Selective Insurance Company of New England (SICNE) [Member] | |||
Ordinary dividends paid | 2,000 | ||
Maximum ordinary dividends to be paid in the next fiscal year | 5,600 | ||
Selective Auto Insurance Company of New Jersey (SAICNJ) [Member] | |||
Ordinary dividends paid | 2,500 | ||
Maximum ordinary dividends to be paid in the next fiscal year | 9,900 | ||
Mesa Underwriting Specialty Insurance Company (MUSIC) [Member] | |||
Ordinary dividends paid | 7,100 | ||
Maximum ordinary dividends to be paid in the next fiscal year | 9,400 | ||
Selective Casualty Insurance Company (SCIC) [Member] | |||
Ordinary dividends paid | 3,000 | ||
Maximum ordinary dividends to be paid in the next fiscal year | 13,300 | ||
Selective Fire and Casualty Insurance Company (SFCIC) [Member] | |||
Ordinary dividends paid | 1,500 | ||
Maximum ordinary dividends to be paid in the next fiscal year | 5,500 | ||
Parent Company [Member] | |||
Total stockholders’ equity | 1,900,000 | ||
Maximum ordinary dividends to be paid in the next fiscal year | 146,000 | ||
Additional Borrowing Capacity for Parent | $ 70,500 |
Quarterly Financial Information (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 |
Sep. 30, 2018 |
Jun. 30, 2018 |
Mar. 31, 2018 |
Dec. 31, 2017 |
Sep. 30, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|||||||||||||
Tax Reform Deferred Tax Asset Impact | $ 0 | $ 20,205 | $ 0 | ||||||||||||||||||||
Net premiums earned | $ 625,288 | [1] | $ 614,277 | $ 604,836 | $ 591,828 | $ 590,088 | [1] | $ 572,055 | $ 568,030 | $ 560,854 | 2,436,229 | 2,291,027 | 2,149,572 | ||||||||||
Net investment income earned | 54,109 | [1] | 52,443 | 45,553 | 43,231 | 42,587 | [1] | 40,446 | 41,430 | 37,419 | 195,336 | 161,882 | 130,754 | ||||||||||
Net realized and unrealized (losses) gains2 | (37,935) | [1],[2] | (4,787) | [2] | (1,652) | [2] | (10,549) | [2] | (1,128) | [1],[2] | 6,798 | [2] | 1,734 | [2] | (1,045) | [2] | (54,923) | 6,359 | (4,937) | ||||
Other income | 1,542 | [1] | 2,538 | 3,179 | 2,179 | 2,190 | [1] | 1,994 | 3,291 | 3,241 | 9,438 | 10,716 | 8,881 | ||||||||||
Total revenues | 643,004 | [1] | 664,471 | 651,916 | 626,689 | 633,737 | [1] | 621,293 | 614,485 | 600,469 | 2,586,080 | 2,469,984 | 2,284,270 | ||||||||||
Income before federal income tax | 52,135 | 67,130 | 72,525 | 19,931 | 68,150 | 67,315 | 58,929 | 67,574 | 211,721 | 261,968 | 219,955 | ||||||||||||
Net income | $ 45,760 | [1] | $ 55,435 | $ 58,819 | $ 18,925 | $ 30,242 | [1] | $ 46,718 | $ 41,426 | $ 50,440 | $ 178,939 | $ 168,826 | $ 158,495 | ||||||||||
Basic net income per share | $ 0.77 | [1] | $ 0.94 | $ 1.00 | $ 0.32 | $ 0.52 | [1] | $ 0.80 | $ 0.71 | $ 0.87 | $ 3.04 | $ 2.89 | $ 2.74 | ||||||||||
Diluted net income per share | $ 0.76 | [1] | $ 0.93 | $ 0.99 | $ 0.32 | $ 0.51 | [1] | $ 0.79 | $ 0.70 | $ 0.85 | $ 3.00 | $ 2.84 | $ 2.70 | ||||||||||
|
Schedule I - Summary of Investments - Other Than Investments in Related Parties (Details) $ in Thousands |
Dec. 31, 2018
USD ($)
|
---|---|
Amortized Cost or Cost | $ 5,948,735 |
Carrying Amount | 5,960,651 |
Short-term Investments [Member] | |
Amortized Cost or Cost | 323,864 |
Fair Value | 323,864 |
Carrying Amount | 323,864 |
Other Investments [Member] | |
Amortized Cost or Cost | 178,938 |
Carrying Amount | 178,938 |
Held-to-maturity Securities [Member] | Obligations of States and Political Subdivisions [Member] | |
Amortized Cost or Cost | 17,431 |
Fair Value | 17,969 |
Carrying Amount | 17,470 |
Held-to-maturity Securities [Member] | Public Utilities | |
Amortized Cost or Cost | 4,707 |
Fair Value | 5,264 |
Carrying Amount | 4,818 |
Held-to-maturity Securities [Member] | All other corporate securities | |
Amortized Cost or Cost | 14,883 |
Fair Value | 15,084 |
Carrying Amount | 14,822 |
Held-to-maturity Securities [Member] | Fixed Income Securities [Member] | |
Amortized Cost or Cost | 37,021 |
Fair Value | 38,317 |
Carrying Amount | 37,110 |
AFS Fixed Income Securities [Member] | US Government Agencies Debt Securities [Member] | |
Amortized Cost or Cost | 120,092 |
Fair Value | 121,310 |
Carrying Amount | 121,310 |
AFS Fixed Income Securities [Member] | Foreign Government | |
Amortized Cost or Cost | 23,202 |
Fair Value | 23,131 |
Carrying Amount | 23,131 |
AFS Fixed Income Securities [Member] | Obligations of States and Political Subdivisions [Member] | |
Amortized Cost or Cost | 1,121,615 |
Fair Value | 1,138,469 |
Carrying Amount | 1,138,469 |
AFS Fixed Income Securities [Member] | Public Utilities | |
Amortized Cost or Cost | 28,464 |
Fair Value | 28,393 |
Carrying Amount | 28,393 |
AFS Fixed Income Securities [Member] | All other corporate securities | |
Amortized Cost or Cost | 1,611,388 |
Fair Value | 1,589,015 |
Carrying Amount | 1,589,015 |
AFS Fixed Income Securities [Member] | CLO and Other ABS | |
Amortized Cost or Cost | 720,193 |
Fair Value | 717,362 |
Carrying Amount | 717,362 |
AFS Fixed Income Securities [Member] | Commercial Mortgage-backed Securities (CMBS) [Member] | |
Amortized Cost or Cost | 527,409 |
Fair Value | 527,078 |
Carrying Amount | 527,078 |
AFS Fixed Income Securities [Member] | Residential Mortgage Backed Securities [Member] | |
Amortized Cost or Cost | 1,118,435 |
Fair Value | 1,128,342 |
Carrying Amount | 1,128,342 |
AFS Fixed Income Securities [Member] | Fixed Income Securities [Member] | |
Amortized Cost or Cost | 5,270,798 |
Fair Value | 5,273,100 |
Carrying Amount | 5,273,100 |
Equity Securities [Member] | Public Utilities | |
Amortized Cost or Cost | 2,416 |
Fair Value | 2,732 |
Carrying Amount | 2,732 |
Equity Securities [Member] | Banks, trusts, and insurance companies | |
Amortized Cost or Cost | 7,448 |
Fair Value | 8,331 |
Carrying Amount | 8,331 |
Equity Securities [Member] | Industrial, miscellaneous and all other | |
Amortized Cost or Cost | 125,361 |
Fair Value | 133,664 |
Carrying Amount | 133,664 |
Equity Securities [Member] | Preferred Stock [Member] | |
Amortized Cost or Cost | 2,889 |
Fair Value | 2,912 |
Carrying Amount | 2,912 |
Equity Securities [Member] | Equity Securities [Member] | |
Amortized Cost or Cost | 138,114 |
Fair Value | 147,639 |
Carrying Amount | $ 147,639 |
Parent Corporation Balance Sheet (Details) - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
---|---|---|---|---|
ASSETS | ||||
Fixed income securities, available-for-sale – at fair value (amortized cost: $111,208 – 2018; $89,799 – 2017) | $ 5,273,100 | $ 5,162,522 | ||
Short-term investments | 323,864 | 165,555 | ||
Cash | 505 | 534 | ||
Current federal income tax | 0 | 3,243 | ||
Deferred federal income tax | 53,540 | 31,990 | ||
Other assets | 76,877 | 78,195 | ||
Total assets | 7,952,729 | 7,686,431 | ||
Liabilities: | ||||
Long-term debt | 439,540 | 439,116 | ||
Other liabilities | 277,579 | 281,624 | ||
Total liabilities | 6,160,927 | 5,973,474 | ||
Stockholders’ Equity: | ||||
Preferred stock of $0 par value per share: Authorized shares: 5,000,000; no shares issued or outstanding | 0 | 0 | ||
Common stock of $2 par value per share Authorized shares: 360,000,000 Issued: 102,848,394 - 2018; 102,284,564 - 2017 | 205,697 | 204,569 | ||
Additional paid-in capital | 390,315 | 367,717 | ||
Retained earnings | 1,858,414 | 1,698,613 | ||
Accumulated other comprehensive (loss) income | (77,956) | 20,170 | ||
Treasury stock – at cost (shares: 43,899,840 – 2018; 43,789,442 – 2017) | (584,668) | (578,112) | ||
Total stockholders’ equity | 1,791,802 | 1,712,957 | $ 1,531,370 | |
Total liabilities and stockholders’ equity | 7,952,729 | 7,686,431 | ||
Parent Company [Member] | ||||
ASSETS | ||||
Fixed income securities, available-for-sale – at fair value (amortized cost: $111,208 – 2018; $89,799 – 2017) | 110,098 | 89,872 | ||
Short-term investments | 35,358 | 24,080 | ||
Cash | 505 | 534 | $ 458 | $ 898 |
Investment in subsidiaries | 2,057,218 | 2,013,304 | ||
Current federal income tax | 14,161 | 22,266 | ||
Deferred federal income tax | 10,346 | 13,239 | ||
Other assets | 1,186 | 871 | ||
Total assets | 2,228,872 | 2,164,166 | ||
Liabilities: | ||||
Long-term debt | 329,540 | 329,116 | ||
Intercompany notes payable | 77,517 | 78,443 | ||
Accrued long-term stock compensation | 21,574 | 37,017 | ||
Other liabilities | 8,439 | 6,633 | ||
Total liabilities | 437,070 | 451,209 | ||
Stockholders’ Equity: | ||||
Preferred stock of $0 par value per share: Authorized shares: 5,000,000; no shares issued or outstanding | 0 | 0 | ||
Common stock of $2 par value per share Authorized shares: 360,000,000 Issued: 102,848,394 - 2018; 102,284,564 - 2017 | 205,697 | 204,569 | ||
Additional paid-in capital | 390,315 | 367,717 | ||
Retained earnings | 1,858,414 | 1,698,613 | ||
Accumulated other comprehensive (loss) income | (77,956) | 20,170 | ||
Treasury stock – at cost (shares: 43,899,840 – 2018; 43,789,442 – 2017) | (584,668) | (578,112) | ||
Total stockholders’ equity | 1,791,802 | 1,712,957 | ||
Total liabilities and stockholders’ equity | $ 2,228,872 | $ 2,164,166 |
Parent Corporation Balance Sheets (Details) - USD ($) $ / shares in Units, $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
---|---|---|---|
Fixed income securities, available-for-sale, amortized cost | $ 5,270,798 | $ 5,076,716 | |
Preferred stock, par value per share | $ 0 | $ 0 | $ 0 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 | |
Common stock, par value per share | $ 2 | $ 2 | |
Common stock, shares authorized | 360,000,000 | 360,000,000 | |
Common stock, shares issued | 102,848,394 | 102,284,564 | |
Treasury stock, shares | 43,899,840 | 43,789,442 | |
Parent Company [Member] | |||
Fixed income securities, available-for-sale, amortized cost | $ 111,208 | $ 89,799 | |
Preferred stock, par value per share | $ 0 | $ 0 | |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 | |
Preferred stock, shares issued | 0 | 0 | |
Preferred stock, shares outstanding | 0 | 0 | |
Common stock, par value per share | $ 2 | $ 2 | |
Common stock, shares authorized | 360,000,000 | 360,000,000 | |
Common stock, shares issued | 102,848,394 | 102,284,564 | |
Treasury stock, shares | 43,899,840 | 43,789,442 |
Parent Corporation Statements of Income (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 |
[1] | Sep. 30, 2018 |
Jun. 30, 2018 |
Mar. 31, 2018 |
Dec. 31, 2017 |
[1] | Sep. 30, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|||
Revenues: | |||||||||||||||
Dividends from subsidaries | $ (100,100) | ||||||||||||||
Net investment income earned | $ 54,109 | $ 52,443 | $ 45,553 | $ 43,231 | $ 42,587 | $ 40,446 | $ 41,430 | $ 37,419 | 195,336 | $ 161,882 | $ 130,754 | ||||
Net realized losses | (25,554) | 6,359 | (4,937) | ||||||||||||
Total revenues | 643,004 | 664,471 | 651,916 | 626,689 | 633,737 | 621,293 | 614,485 | 600,469 | 2,586,080 | 2,469,984 | 2,284,270 | ||||
Expenses: | |||||||||||||||
Interest expense | 24,419 | 24,354 | 22,771 | ||||||||||||
Total expenses | 2,374,359 | 2,208,016 | 2,064,315 | ||||||||||||
Federal income tax (benefit) expense: | |||||||||||||||
Current | 35,012 | 62,184 | 48,581 | ||||||||||||
Deferred | (2,230) | 30,958 | 12,879 | ||||||||||||
Total federal income tax expense | 32,782 | 93,142 | 61,460 | ||||||||||||
Net income | $ 45,760 | $ 55,435 | $ 58,819 | $ 18,925 | $ 30,242 | $ 46,718 | $ 41,426 | $ 50,440 | 178,939 | 168,826 | 158,495 | ||||
Parent Company [Member] | |||||||||||||||
Revenues: | |||||||||||||||
Dividends from subsidaries | 100,060 | 80,096 | 61,014 | ||||||||||||
Net investment income earned | 3,425 | 2,044 | 1,259 | ||||||||||||
Net realized losses | (1,567) | (15) | (220) | ||||||||||||
Total revenues | 101,918 | 82,125 | 62,053 | ||||||||||||
Expenses: | |||||||||||||||
Interest expense | 24,652 | 24,721 | 24,030 | ||||||||||||
Other expenses | 25,446 | 36,251 | 35,020 | ||||||||||||
Total expenses | 50,098 | 60,972 | 59,050 | ||||||||||||
Income before federal income tax | 51,820 | 21,153 | 3,003 | ||||||||||||
Federal income tax (benefit) expense: | |||||||||||||||
Current | (14,173) | (22,187) | (17,924) | ||||||||||||
Deferred | 3,141 | 6,311 | (2,143) | ||||||||||||
Total federal income tax expense | (11,032) | (15,876) | (20,067) | ||||||||||||
Net income before equity in undistributed income of subsidiaries | 62,852 | 37,029 | 23,070 | ||||||||||||
Equity In Undistributed Income Of Continuing Subsidiaries, Net Of Tax | 116,087 | 131,797 | 135,425 | ||||||||||||
Net income | $ 178,939 | $ 168,826 | $ 158,495 | ||||||||||||
|
Parent Corporation Statements of Cash Flows (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 |
Sep. 30, 2018 |
Jun. 30, 2018 |
Mar. 31, 2018 |
Dec. 31, 2017 |
Sep. 30, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|||||
Operating Activities | |||||||||||||||
Net income | $ 45,760 | [1] | $ 55,435 | $ 58,819 | $ 18,925 | $ 30,242 | [1] | $ 46,718 | $ 41,426 | $ 50,440 | $ 178,939 | $ 168,826 | $ 158,495 | ||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||||
Stock-based compensation expense | 14,507 | 12,089 | 10,449 | ||||||||||||
Net realized losses | 25,554 | (6,359) | 4,937 | ||||||||||||
Amortization - other | 44,874 | 52,100 | 61,671 | ||||||||||||
Changes in assets and liabilities: | |||||||||||||||
Decrease (increase) in net federal income taxes | 2,428 | 30,918 | 11,150 | ||||||||||||
Increase in other assets | 372 | 2,643 | 4,979 | ||||||||||||
Increase in other liabilities | (13,343) | 27,297 | 9,191 | ||||||||||||
Net cash provided by operating activities | 454,944 | 379,545 | 329,509 | ||||||||||||
Investing Activities | |||||||||||||||
Purchase of fixed income securities, available-for-sale | (2,918,203) | (2,130,362) | (1,982,023) | ||||||||||||
Redemption and maturities of fixed income securities, available-for-sale | 638,916 | 555,216 | 641,524 | ||||||||||||
Sale of fixed income securities, available for sale | 12,106 | 58,832 | 102,868 | ||||||||||||
Purchase of short-term investments | (4,259,734) | (4,280,553) | (3,499,380) | ||||||||||||
Sale of short-term investments | 4,101,530 | 4,338,318 | 3,470,022 | ||||||||||||
Net cash used in investing activities | (435,688) | (332,658) | (320,736) | ||||||||||||
Financing Activities | |||||||||||||||
Dividends to stockholders | (42,097) | (37,045) | (33,758) | ||||||||||||
Acquisition of treasury stock | (6,556) | (6,015) | (4,992) | ||||||||||||
Net proceeds from stock purchase and compensation plans | 7,252 | 7,599 | 7,811 | ||||||||||||
Excess tax benefits from share-based payment arrangements | 0 | 0 | 1,819 | ||||||||||||
Net cash used in financing activities | (47,047) | (39,582) | 15,878 | ||||||||||||
Cash, beginning of year | 534 | 534 | |||||||||||||
Cash, end of year | 505 | 534 | 505 | 534 | |||||||||||
Parent Company [Member] | |||||||||||||||
Operating Activities | |||||||||||||||
Net income | 178,939 | 168,826 | 158,495 | ||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||||
Equity in undistributed income of subsidiaries, net of tax | (116,087) | (131,797) | (135,425) | ||||||||||||
Stock-based compensation expense | 14,507 | 12,089 | 10,449 | ||||||||||||
Net realized losses | 1,567 | 15 | 220 | ||||||||||||
Amortization - other | 567 | 678 | 648 | ||||||||||||
Changes in assets and liabilities: | |||||||||||||||
(Decrease) increase in accrued long-term stock compensation | (15,443) | 4,988 | 5,564 | ||||||||||||
Decrease (increase) in net federal income taxes | 11,246 | 3,811 | (3,612) | ||||||||||||
Increase in other assets | (343) | (60) | (202) | ||||||||||||
Increase in other liabilities | 1,712 | 714 | 80 | ||||||||||||
Net cash provided by operating activities | 76,665 | 59,264 | 36,217 | ||||||||||||
Investing Activities | |||||||||||||||
Purchase of fixed income securities, available-for-sale | (75,046) | (58,832) | (45,789) | ||||||||||||
Redemption and maturities of fixed income securities, available-for-sale | 6,849 | 10,465 | 14,983 | ||||||||||||
Sale of fixed income securities, available for sale | 45,099 | 31,819 | 18,768 | ||||||||||||
Purchase of short-term investments | (207,115) | (185,590) | (119,501) | ||||||||||||
Sale of short-term investments | 195,846 | 179,292 | 130,841 | ||||||||||||
Net cash used in investing activities | (34,367) | (22,846) | (698) | ||||||||||||
Financing Activities | |||||||||||||||
Dividends to stockholders | (42,097) | (37,045) | (33,758) | ||||||||||||
Acquisition of treasury stock | (6,556) | (6,015) | (4,992) | ||||||||||||
Net proceeds from stock purchase and compensation plans | 7,252 | 7,599 | 7,811 | ||||||||||||
Excess tax benefits from share-based payment arrangements | 0 | 0 | 1,819 | ||||||||||||
Principal payments of borrowings from subsidiaries | (926) | (881) | (6,839) | ||||||||||||
Net cash used in financing activities | (42,327) | (36,342) | (35,959) | ||||||||||||
Net (decrease) increase in cash | (29) | 76 | (440) | ||||||||||||
Cash, beginning of year | $ 534 | $ 458 | 534 | 458 | 898 | ||||||||||
Cash, end of year | $ 505 | $ 534 | $ 505 | $ 534 | $ 458 | ||||||||||
|
Schedule III - Supplementary Insurance Information (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 |
Sep. 30, 2018 |
Jun. 30, 2018 |
Mar. 31, 2018 |
Dec. 31, 2017 |
Sep. 30, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|||||
Deferred policy acquisition costs | $ 252,612 | $ 235,055 | $ 252,612 | $ 235,055 | $ 222,564 | ||||||||||
Reserve for loss and loss expenses | 3,893,868 | 3,771,240 | 3,893,868 | 3,771,240 | 3,691,719 | ||||||||||
Unearned premiums | 1,431,932 | 1,349,644 | 1,431,932 | 1,349,644 | 1,262,819 | ||||||||||
Net premiums earned | 2,436,229 | 2,291,027 | 2,149,572 | ||||||||||||
Net investment income | 140,413 | 168,241 | 125,817 | ||||||||||||
Loss and loss expense incurred | 1,498,134 | 1,345,074 | 1,234,797 | ||||||||||||
Amortization of deferred policy acquisition costs | 495,042 | 469,236 | 450,328 | ||||||||||||
Other operating expenses | 321,880 | 322,381 | 312,514 | ||||||||||||
Net premiums written | 2,514,286 | 2,370,641 | 2,237,288 | ||||||||||||
Other insurance expenses | 331,318 | 333,097 | 321,395 | ||||||||||||
Other income | (1,542) | [1] | $ (2,538) | $ (3,179) | $ (2,179) | (2,190) | [1] | $ (1,994) | $ (3,291) | $ (3,241) | (9,438) | (10,716) | (8,881) | ||
Standard Commercial Lines [Member] | |||||||||||||||
Deferred policy acquisition costs | 206,391 | 193,408 | 206,391 | 193,408 | 181,193 | ||||||||||
Reserve for loss and loss expenses | 3,283,531 | 3,165,217 | 3,283,531 | 3,165,217 | 3,098,554 | ||||||||||
Unearned premiums | 1,020,054 | 956,173 | 1,020,054 | 956,173 | 884,976 | ||||||||||
Net premiums earned | 1,912,222 | 1,788,499 | 1,665,483 | ||||||||||||
Net investment income | 0 | 0 | 0 | ||||||||||||
Loss and loss expense incurred | 1,141,038 | 1,008,150 | 913,506 | ||||||||||||
Amortization of deferred policy acquisition costs | 412,420 | 387,552 | 367,813 | ||||||||||||
Other operating expenses | 249,660 | 243,283 | 237,729 | ||||||||||||
Net premiums written | 1,975,683 | 1,858,735 | 1,745,782 | ||||||||||||
Standard Personal Lines [Member] | |||||||||||||||
Deferred policy acquisition costs | 18,070 | 16,952 | 18,070 | 16,952 | 16,664 | ||||||||||
Reserve for loss and loss expenses | 223,223 | 263,166 | 223,223 | 263,166 | 286,081 | ||||||||||
Unearned premiums | 304,085 | 295,435 | 304,085 | 295,435 | 282,111 | ||||||||||
Net premiums earned | 304,441 | 289,701 | 280,607 | ||||||||||||
Net investment income | 0 | 0 | 0 | ||||||||||||
Loss and loss expense incurred | 206,752 | 189,294 | 177,749 | ||||||||||||
Amortization of deferred policy acquisition costs | 33,617 | 32,542 | 34,105 | ||||||||||||
Other operating expenses | 51,308 | 56,761 | 56,334 | ||||||||||||
Net premiums written | 309,277 | 296,775 | 281,822 | ||||||||||||
Excess And Surplus Operations [Member] | |||||||||||||||
Deferred policy acquisition costs | 28,151 | 24,695 | 28,151 | 24,695 | 24,707 | ||||||||||
Reserve for loss and loss expenses | 387,114 | 342,857 | 387,114 | 342,857 | 307,084 | ||||||||||
Unearned premiums | 107,793 | 98,036 | 107,793 | 98,036 | 95,732 | ||||||||||
Net premiums earned | 219,566 | 212,827 | 203,482 | ||||||||||||
Net investment income | 0 | 0 | 0 | ||||||||||||
Loss and loss expense incurred | 150,344 | 147,630 | 143,542 | ||||||||||||
Amortization of deferred policy acquisition costs | 49,005 | 49,142 | 48,410 | ||||||||||||
Other operating expenses | 20,912 | 22,337 | 18,451 | ||||||||||||
Net premiums written | 229,326 | 215,131 | 209,684 | ||||||||||||
Investments Segment [Member] | |||||||||||||||
Deferred policy acquisition costs | 0 | 0 | 0 | 0 | 0 | ||||||||||
Reserve for loss and loss expenses | 0 | 0 | 0 | 0 | 0 | ||||||||||
Unearned premiums | $ 0 | $ 0 | 0 | 0 | 0 | ||||||||||
Net premiums earned | 0 | 0 | 0 | ||||||||||||
Net investment income | 140,413 | 168,241 | 125,817 | ||||||||||||
Loss and loss expense incurred | 0 | 0 | 0 | ||||||||||||
Amortization of deferred policy acquisition costs | 0 | 0 | 0 | ||||||||||||
Other operating expenses | 0 | 0 | 0 | ||||||||||||
Net premiums written | 0 | 0 | 0 | ||||||||||||
Miscellaneous Income [Member] | |||||||||||||||
Other income | $ (9,438) | $ (10,716) | $ (8,881) | ||||||||||||
|
Schedule IV - Reinsurance (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 |
[1] | Sep. 30, 2018 |
Jun. 30, 2018 |
Mar. 31, 2018 |
Dec. 31, 2017 |
[1] | Sep. 30, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|||
Direct Amount | $ 2,808,764 | $ 2,647,488 | $ 2,484,715 | ||||||||||||
Assumed From Other Companies | 25,831 | 25,831 | 28,214 | ||||||||||||
Ceded to Other Companies | 398,366 | 382,292 | 363,357 | ||||||||||||
Total Net Premiums Earned | $ 625,288 | $ 614,277 | $ 604,836 | $ 591,828 | $ 590,088 | $ 572,055 | $ 568,030 | $ 560,854 | $ 2,436,229 | $ 2,291,027 | $ 2,149,572 | ||||
Percentage of Amount Assumed to Net | 1.00% | 1.00% | 1.00% | ||||||||||||
Accident and Health Insurance Segment [Member] | |||||||||||||||
Direct Amount | $ 19 | $ 24 | $ 32 | ||||||||||||
Assumed From Other Companies | 0 | 0 | 0 | ||||||||||||
Ceded to Other Companies | 19 | 24 | 0 | ||||||||||||
Total Net Premiums Earned | $ 0 | $ 0 | $ 32 | ||||||||||||
Percentage of Amount Assumed to Net | 0.00% | 0.00% | 0.00% | ||||||||||||
Property and liability insurance [Member] | |||||||||||||||
Direct Amount | $ 2,808,745 | $ 2,647,464 | $ 2,484,683 | ||||||||||||
Assumed From Other Companies | 25,831 | 25,831 | 28,214 | ||||||||||||
Ceded to Other Companies | 398,347 | 382,268 | 363,357 | ||||||||||||
Total Net Premiums Earned | $ 2,436,229 | $ 2,291,027 | $ 2,149,540 | ||||||||||||
Percentage of Amount Assumed to Net | 1.00% | 1.00% | 1.00% | ||||||||||||
|
Schedule V - Allowance for Uncollectible Premiums and Other Receivables (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Balance, January 1 | $ 14,600 | $ 11,480 | $ 10,122 |
Additions | 4,022 | 6,414 | 4,669 |
Deductions | (4,722) | (3,294) | (3,311) |
Balance, December 31 | $ 13,900 | $ 14,600 | $ 11,480 |
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