Investments (Tables)
|
12 Months Ended |
Dec. 31, 2013
|
Cash And Cash Equivalents [Abstract] |
|
Investment Holdings by Type of Instrument |
The following table presents the Company’s investment
holdings by type of instrument as of the periods presented (in
thousands):
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As of December 31, 2013 |
|
|
As of December 31, 2012 |
|
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|
Cost or |
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|
Cost or |
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|
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|
Amortized |
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|
|
Carrying |
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|
Amortized |
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|
|
|
|
Carrying |
|
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|
Cost |
|
|
Fair Value |
|
|
Value |
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|
Cost (2) |
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|
Fair Value |
|
|
Value |
|
Cash and cash equivalents (1)
|
|
$ |
117,275 |
|
|
$ |
117,275 |
|
|
$ |
117,275 |
|
|
$ |
347,392 |
|
|
$ |
347,392 |
|
|
$ |
347,392 |
|
Restricted cash and cash equivalents
|
|
|
2,600 |
|
|
|
2,600 |
|
|
|
2,600 |
|
|
|
33,009 |
|
|
|
33,009 |
|
|
|
33,009 |
|
Trading portfolio:
|
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|
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|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fixed maturities:
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
U.S. government obligations and agencies
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
3,192 |
|
|
|
4,009 |
|
|
|
4,009 |
|
Equity securities (2):
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Common stock:
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
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Metals and mining
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
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|
31,113 |
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|
26,130 |
|
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|
26,130 |
|
Energy
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
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|
12,053 |
|
|
|
10,868 |
|
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|
10,868 |
|
Other
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
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|
8,416 |
|
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|
8,215 |
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|
8,215 |
|
Exchange-traded and mutual funds:
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Metals and mining
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
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|
22,687 |
|
|
|
21,989 |
|
|
|
21,989 |
|
Agriculture
|
|
|
— |
|
|
|
— |
|
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|
— |
|
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|
10,705 |
|
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|
10,265 |
|
|
|
10,265 |
|
Energy
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
4,992 |
|
|
|
5,068 |
|
|
|
5,068 |
|
Indices
|
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— |
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— |
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— |
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|
2,827 |
|
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|
2,506 |
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|
2,506 |
|
Non-hedging derivative asset (liability), net (3)
|
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|
— |
|
|
|
— |
|
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|
— |
|
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|
69 |
|
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|
(21 |
) |
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|
(21 |
) |
Other investments (4)
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|
— |
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— |
|
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— |
|
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|
517 |
|
|
|
317 |
|
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|
317 |
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Total trading portfolio investments
|
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|
— |
|
|
|
— |
|
|
|
— |
|
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|
96,571 |
|
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|
89,346 |
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|
|
89,346 |
|
Available for sale portfolio:
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Fixed maturities:
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|
|
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|
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|
|
|
|
|
|
|
|
|
|
|
|
|
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U.S. government obligations and agencies
|
|
|
105,229 |
|
|
|
104,215 |
|
|
|
104,215 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Corporate bonds
|
|
|
94,708 |
|
|
|
94,203 |
|
|
|
94,203 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Mortgage-backed and asset-backed securities
|
|
|
91,502 |
|
|
|
91,000 |
|
|
|
91,000 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Equity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
Common stock
|
|
|
8,500 |
|
|
|
9,295 |
|
|
|
9,295 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Mutual funds
|
|
|
55,113 |
|
|
|
55,727 |
|
|
|
55,727 |
|
|
|
— |
|
|
|
— |
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|
— |
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|
|
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|
|
|
|
|
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|
Total available for sale investments
|
|
|
355,052 |
|
|
|
354,440 |
|
|
|
354,440 |
|
|
|
— |
|
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|
— |
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|
— |
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Total investments
|
|
$ |
474,927 |
|
|
$ |
474,315 |
|
|
$ |
474,315 |
|
|
$ |
476,972 |
|
|
$ |
469,747 |
|
|
$ |
469,747 |
|
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|
(1) |
Cash and cash equivalents include
money market accounts consisting of or collateralized by short-term
U.S. Treasury securities and other U.S. government guaranteed
securities. |
(2) |
The cost for equity securities as of
December 31, 2012 has been restated from the amounts reported
on Form 10-K for the year ended December 31, 2012. The amounts
previously reported represented the cost determined under a
statutory basis of accounting. The restatement does not affect any
amounts reported in the consolidated financial statements including
the carrying amount of equity securities reported in the
consolidated balance sheet as of December 31, 2012 and
unrealized gains and losses reported in the consolidated statement
of income for the year ended December 31, 2012. |
(3) |
Derivatives are included in Other
assets and Other liabilities and accrued expenses in the
Consolidated Balance Sheets. |
(4) |
Other investments represent physical
metals held by the Company and are included in Other assets in the
Consolidated Balance Sheets. |
|
Investment Income (Expense) Comprised Primarily of Interest and Dividends |
The following table presents the components of net investment
income, comprised primarily of interest and dividends, for the
periods presented (in thousands):
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|
|
|
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|
|
|
|
|
|
|
|
Year Ended December 31, |
|
|
|
2013 |
|
|
2012 |
|
|
2011 |
|
Cash and cash equivalents (1)
|
|
$ |
148 |
|
|
$ |
705 |
|
|
$ |
568 |
|
Fixed maturities
|
|
|
1,420 |
|
|
|
66 |
|
|
|
494 |
|
Equity securities
|
|
|
1,982 |
|
|
|
566 |
|
|
|
421 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total investment income
|
|
|
3,550 |
|
|
|
1,337 |
|
|
|
1,483 |
|
Less investment expenses
|
|
|
(1,622 |
) |
|
|
(896 |
) |
|
|
(695 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment (expense) income
|
|
$ |
1,928 |
|
|
$ |
441 |
|
|
$ |
788 |
|
|
|
|
|
|
|
|
|
|
|
|
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|
(1) |
Includes interest earned on
restricted cash and cash equivalents. |
|
Effect of Trading Activities by Type of Instrument and by Line Item in Condensed Consolidated Statements of Income |
The following table provides the effect of trading activities on
the Company’s results of operations for the periods presented
by type of instrument and by line item in the Consolidated
Statements of Income (in thousands):
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|
Year Ended December 31, |
|
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|
2013 |
|
|
2012 |
|
|
2011 |
|
Realized gains (losses) on investments:
|
|
|
|
|
|
|
|
|
|
|
|
|
Fixed maturities
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
(3,206 |
) |
Equity securities
|
|
|
(15,969 |
) |
|
|
(12,286 |
) |
|
|
5,816 |
|
Derivatives (non-hedging instruments) (1)
|
|
|
(68 |
) |
|
|
343 |
|
|
|
(260 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total realized gains (losses) on trading portfolio
|
|
|
(16,037 |
) |
|
|
(11,943 |
) |
|
|
2,350 |
|
Change in unrealized gains (losses) on investments:
|
|
|
|
|
|
|
|
|
|
|
|
|
Fixed maturities
|
|
|
13 |
|
|
|
195 |
|
|
|
8,472 |
|
Equity securities
|
|
|
7,758 |
|
|
|
9,158 |
|
|
|
(26,762 |
) |
Derivatives (non-hedging instruments) (1)
|
|
|
89 |
|
|
|
145 |
|
|
|
25 |
|
Other
|
|
|
14 |
|
|
|
(55 |
) |
|
|
(145 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total change in unrealized gains (losses) on trading portfolio
|
|
|
7,874 |
|
|
|
9,443 |
|
|
|
(18,410 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net gains (losses) recognized on trading portfolio
|
|
$ |
(8,163 |
) |
|
$ |
(2,500 |
) |
|
$ |
(16,060 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
This table provides the alternative
quantitative disclosures permitted for derivatives that are not
used as hedging instruments and are included in the trading
portfolio. |
|
Cost or Amortized Cost and Fair Value of Securities Available for Sale |
The following table provides the cost or amortized cost and fair
value of securities available for sale as of the period presented
(in thousands):
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2013 |
|
|
|
Cost or
Amortized Cost |
|
|
Gross Unrealized
Gains |
|
|
Gross Unrealized
Losses |
|
|
Fair Value |
|
Fixed Maturities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
US government and agency obligations
|
|
$ |
105,229 |
|
|
$ |
19 |
|
|
$ |
(1,033 |
) |
|
$ |
104,215 |
|
Corporate bonds
|
|
|
94,708 |
|
|
|
265 |
|
|
|
(770 |
) |
|
|
94,203 |
|
Mortgage-backed and asset-backed securities
|
|
|
91,502 |
|
|
|
75 |
|
|
|
(577 |
) |
|
|
91,000 |
|
Equity Securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common stock
|
|
|
8,500 |
|
|
|
916 |
|
|
|
(121 |
) |
|
|
9,295 |
|
Mutual funds
|
|
|
55,113 |
|
|
|
2,266 |
|
|
|
(1,652 |
) |
|
|
55,727 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$ |
355,052 |
|
|
$ |
3,541 |
|
|
$ |
(4,153 |
) |
|
$ |
354,440 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Summarized Fair Value and Gross Unrealized Losses on Securities Available for Sale |
The following table summarizes the fair value and gross unrealized
losses on securities available for sale, aggregated by major
investment category and length of time that individual securities
have been in a continuous unrealized loss position as of
December 31, 2013 (dollars in thousands):
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less than 12 months |
|
|
12 months or longer |
|
|
|
Number
of issues |
|
|
Fair value |
|
|
Unrealized
losses |
|
|
Number
of issues |
|
|
Fair value |
|
|
Unrealized
losses |
|
Fixed maturities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
US government and agency obligations
|
|
|
6 |
|
|
$ |
71,042 |
|
|
$ |
(1,033 |
) |
|
|
— |
|
|
$ |
— |
|
|
$ |
— |
|
Corporate bonds
|
|
|
55 |
|
|
|
65,926 |
|
|
|
(770 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Mortgage-backed and asset-backed securities
|
|
|
16 |
|
|
|
67,110 |
|
|
|
(577 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Equity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common stock
|
|
|
13 |
|
|
|
3,517 |
|
|
|
(121 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Mutual funds
|
|
|
5 |
|
|
|
19,646 |
|
|
|
(1,652 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
95 |
|
|
$ |
227,241 |
|
|
$ |
(4,153 |
) |
|
|
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortized Cost and Fair Value of Fixed Maturities Available for Sale by Contractual Maturity |
The following table presents the amortized cost and fair value of
fixed maturities available for sale by contractual maturity as of
December 31, 2013 (in thousands):
|
|
|
|
|
|
|
|
|
|
|
Fixed Maturities
Securities Available for Sale |
|
|
|
Amortized Cost |
|
|
Fair Value |
|
Due in one year or less
|
|
$ |
3,827 |
|
|
$ |
3,825 |
|
Due after one year through five years
|
|
|
191,522 |
|
|
|
190,260 |
|
Due after five years through ten years
|
|
|
4,588 |
|
|
|
4,333 |
|
Due after ten years
|
|
|
— |
|
|
|
— |
|
Mortgage-backed and asset-backed securities
|
|
|
91,502 |
|
|
|
91,000 |
|
|
|
|
|
|
|
|
|
|
Total
|
|
$ |
291,439 |
|
|
$ |
289,418 |
|
|
|
|
|
|
|
|
|
|
Summary of Securities Available for Sale |
The following table provides certain information related to
securities available for sale during the periods presented (in
thousands):
|
|
|
|
|
|
|
Year Ended
December 31, 2013 |
|
Sales proceeds (fair value)
|
|
$ |
15,542 |
|
Gross realized gains
|
|
$ |
1,301 |
|
Gross realized losses
|
|
$ |
(4 |
) |
Other than temporary losses
|
|
$ |
— |
|
|