Stockholders Equity

12 Months Ended

Dec. 31, 2015

Equity [Abstract]

STOCKHOLDERS’ EQUITY

NOTE 10. STOCKHOLDERS’ EQUITY

Our authorized share capital consists of 50,000,000 common shares with a par value of $0.10 per share and 1,000,000 preferred shares with a par value of $0.10 per share. Our Company has not issued any preferred shares as of December 31, 2015.

The following table represents changes in our Company’s issued and outstanding common shares for the periods indicated:

	Years Ended December 31,
amounts in thousands	2015		2014		2013
Beginning balance		14,281		14,198		14,047
Vested stock grants		127		59		50
Employee stock purchase plan		21		19		17
Stock options exercised		2		5		84
Treasury shares purchased		—		—		—
Ending balance		14,431		14,281		14,198

Our Parent Company has not paid or declared any cash dividends on Common stock.  Declarations of cash dividends are at the discretion of our Board of Directors. The amounts of such dividends will be dependent upon factors such as, our results of operations and cash flow, financial condition and business needs, restrictive covenants under our credit facility and senior notes that require us to maintain certain consolidated tangible net worth, the capital and surplus requirements of our subsidiaries, and applicable insurance regulations that limit the amount of dividends that may be paid by our regulated insurance subsidiaries.

NIC may pay dividends to our Parent Company out of its statutory earned surplus pursuant to statutory restrictions imposed under the New York insurance law.  As of December 31, 2015, the maximum amount available for the payment of dividends by NIC without prior regulatory approval is $94.9 million.  NIC did not pay any dividends to our Parent Company in 2015 or 2014.

NCUL may pay dividends to our Parent Company up to the extent of available profits that have been distributed from the Syndicate.  The Syndicate’s capital and surplus as filed with Lloyd’s consists of undistributed profits on closed and open UWYs.  In connection with the business plan approved in November 2015, NCUL posted all of the available undistributed profits on closed years of $156.7 million to support a portion of the FAL requirement and therefore that amount is not available for distribution to NCUL, which ultimately is not available to our Parent in the form of a dividend.  As of December 31, 2015, NCUL has the ability to pay dividends of up to $1.1 million, consisting of undistributed profits on closed and open UWYs from the Syndicate, to the Parent in the form of dividends.

The amount and nature of net assets that are restricted from payment of dividends as of December 31, 2015 and 2014 are presented in the following table:

	As of December 31,
amounts in thousands	2015		2014
Restricted net assets:
NIC and NSIC:
Fixed maturities at fair value (amortized cost: 2015, $9,950; 2014, $10,086)	$	11,277	$	11,732
Short term investments, at fair value		290		290
Cash		6,208		1,212
Total NIC and NSIC (1)	$	17,775	$	13,234
NHUK:
Fixed maturities at fair value (amortized cost: 2015, $458,558; 2014, $445,504)	$	448,666	$	447,679
Short term investments, at  fair value		71,320		61,549
Cash		3,262		963
Total NHUK (2)	$	523,248	$	510,191
Total Restricted Net Assets	$	541,023	$	523,425

(1) - The restricted net assets for NIC and NSIC primarily consist of fixed maturities on deposit with various state insurance departments.  The cash as of December 31, 2015 and 2014, as presented in the table above, was on deposit with a U.K. bank to comply with the regulatory requirements of the Prudential Regulation Authority for the underwriting activities of the U.K. Branch.  

(2) - The restricted net assets for NHUK consists of fixed maturities and cash held in trust for the benefit of syndicate policyholders and short term investments primarily consisting of overseas deposits in various countries with Lloyd's to support underwriting activities in those countries.