Investments (Tables)
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12 Months Ended |
Dec. 31, 2016 |
Investments [Abstract] |
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Schedule of reconciliation of cost to fair value of available-for-sale securities |
Available-for-sale securities The following tables summarize the cost and fair value of our available-for-sale securities: | | | | | | | | | | | | | | | | | | | | At December 31, 2016 | (in thousands) | | Amortized cost | | Gross unrealized gains | | Gross unrealized losses | | Estimated fair value | Available-for-sale securities: | | | | | | | | | U.S. treasury | | $ | 5,093 |
| | $ | 0 |
| | $ | 62 |
| | $ | 5,031 |
| Government sponsored entities | | 2,004 |
| | 22 |
| | 0 |
| | 2,026 |
| States & political subdivisions | | 249,312 |
| | 6,113 |
| | 2,293 |
| | 253,132 |
| Corporate debt securities | | 321,041 |
| | 3,293 |
| | 1,386 |
| | 322,948 |
| Residential mortgage-backed securities | | 16,232 |
| | 61 |
| | 191 |
| | 16,102 |
| Commercial mortgage-backed securities | | 37,723 |
| | 59 |
| | 933 |
| | 36,849 |
| Collateralized debt obligations | | 68,998 |
| | 351 |
| | 96 |
| | 69,253 |
| Other debt securities | | 2,000 |
| | 0 |
| | 0 |
| | 2,000 |
| Total fixed maturities | | 702,403 |
| | 9,899 |
| | 4,961 |
| | 707,341 |
| Common stock | | 6,152 |
| | 0 |
| | 202 |
| | 5,950 |
| Total available-for-sale securities | | $ | 708,555 |
| | $ | 9,899 |
| | $ | 5,163 |
| | $ | 713,291 |
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| | | | | | | | | | | | | | | | | | | | At December 31, 2015 | (in thousands) | | Amortized cost | | Gross unrealized gains | | Gross unrealized losses | | Estimated fair value | Available-for-sale securities: | | | | | | | | | States & political subdivisions | | $ | 221,093 |
| | $ | 10,761 |
| | $ | 7 |
| | $ | 231,847 |
| Corporate debt securities | | 254,464 |
| | 281 |
| | 4,412 |
| | 250,333 |
| Residential mortgage-backed securities | | 13,639 |
| | 4 |
| | 130 |
| | 13,513 |
| Commercial mortgage-backed securities | | 38,630 |
| | 30 |
| | 1,089 |
| | 37,571 |
| Collateralized debt obligations | | 51,905 |
| | 61 |
| | 221 |
| | 51,745 |
| Other debt securities | | 2,241 |
| | 0 |
| | 41 |
| | 2,200 |
| Total fixed maturities | | 581,972 |
| | 11,137 |
| | 5,900 |
| | 587,209 |
| Common stock | | 12,865 |
| | 0 |
| | 133 |
| | 12,732 |
| Total available-for-sale securities | | $ | 594,837 |
| | $ | 11,137 |
| | $ | 6,033 |
| | $ | 599,941 |
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Schedule of amortized cost and estimated fair value of fixed maturities by remaining contractual term to maturity |
The amortized cost and estimated fair value of fixed maturities at December 31, 2016, are shown below by remaining contractual term to maturity. Mortgage-backed securities are allocated based upon stated maturity dates. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. | | | | | | | | | | | | At December 31, 2016 | (in thousands) | | Amortized | | Estimated | | | cost | | fair value | Due in one year or less | | $ | 55,304 |
| | $ | 55,394 |
| Due after one year through five years | | 329,377 |
| | 331,617 |
| Due after five years through ten years | | 203,880 |
| | 207,358 |
| Due after ten years | | 113,842 |
| | 112,972 |
| Total fixed maturities | | $ | 702,403 |
| | $ | 707,341 |
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Schedule of available-for-sale securities in a gross unrealized loss position by length of time |
Available-for-sale securities in a gross unrealized loss position are as follows. Data is provided by length of time for securities in a gross unrealized loss position. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | At December 31, 2016 | (dollars in thousands) | | Less than 12 months | | 12 months or longer | | Total | | | Fair | | Unrealized | | Fair | | Unrealized | | Fair | | Unrealized | | No. of | | | value | | losses | | value | | losses | | value | | losses | | holdings | Available-for-sale securities: | | | | | | | | | | | | | | | U.S. treasury | | $ | 5,031 |
| | $ | 62 |
| | $ | 0 |
| | $ | 0 |
| | $ | 5,031 |
| | $ | 62 |
| | 1 |
| States & political subdivisions | | 84,611 |
| | 2,293 |
| | 0 |
| | 0 |
| | 84,611 |
| | 2,293 |
| | 40 |
| Corporate debt securities | | 112,453 |
| | 987 |
| | 8,692 |
| | 399 |
| | 121,145 |
| | 1,386 |
| | 155 |
| Residential mortgage-backed securities | | 7,451 |
| | 60 |
| | 4,974 |
| | 131 |
| | 12,425 |
| | 191 |
| | 13 |
| Commercial mortgage-backed securities | | 26,509 |
| | 437 |
| | 4,319 |
| | 496 |
| | 30,828 |
| | 933 |
| | 28 |
| Collateralized debt obligations | | 27,470 |
| | 75 |
| | 4,208 |
| | 21 |
| | 31,678 |
| | 96 |
| | 15 |
| Total fixed maturities | | 263,525 |
| | 3,914 |
| | 22,193 |
| | 1,047 |
| | 285,718 |
| | 4,961 |
| | 252 |
| Common stock | | 5,950 |
| | 202 |
| | 0 |
| | 0 |
| | 5,950 |
| | 202 |
| | 1 |
| Total available-for-sale securities | | $ | 269,475 |
| | $ | 4,116 |
| | $ | 22,193 |
| | $ | 1,047 |
| | $ | 291,668 |
| | $ | 5,163 |
| | 253 |
| Quality breakdown of fixed maturities: | | |
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| | |
| | |
| | |
| | |
| | |
| Investment grade | | $ | 239,041 |
| | $ | 3,605 |
| | $ | 16,061 |
| | $ | 399 |
| | $ | 255,102 |
| | $ | 4,004 |
| | 136 |
| Non-investment grade | | 24,484 |
| | 309 |
| | 6,132 |
| | 648 |
| | 30,616 |
| | 957 |
| | 116 |
| Total fixed maturities | | $ | 263,525 |
| | $ | 3,914 |
| | $ | 22,193 |
| | $ | 1,047 |
| | $ | 285,718 |
| | $ | 4,961 |
| | 252 |
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| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | At December 31, 2015 | (dollars in thousands) | | Less than 12 months | | 12 months or longer | | Total | | | Fair | | Unrealized | | Fair | | Unrealized | | Fair | | Unrealized | | No. of | | | value | | losses | | value | | losses | | value | | losses | | holdings | Available-for-sale securities: | | | | | | | | | | | | | | | States & political subdivisions | | $ | 5,867 |
| | $ | 7 |
| | $ | 0 |
| | $ | 0 |
| | $ | 5,867 |
| | $ | 7 |
| | 3 |
| Corporate debt securities | | 172,831 |
| | 2,447 |
| | 19,086 |
| | 1,965 |
| | 191,917 |
| | 4,412 |
| | 349 |
| Residential mortgage-backed securities | | 9,827 |
| | 84 |
| | 936 |
| | 46 |
| | 10,763 |
| | 130 |
| | 9 |
| Commercial mortgage-backed securities | | 13,081 |
| | 68 |
| | 19,081 |
| | 1,021 |
| | 32,162 |
| | 1,089 |
| | 24 |
| Collateralized debt obligations | | 27,981 |
| | 103 |
| | 9,174 |
| | 118 |
| | 37,155 |
| | 221 |
| | 19 |
| Other debt securities | | 1,960 |
| | 40 |
| | 241 |
| | 1 |
| | 2,201 |
| | 41 |
| | 2 |
| Total fixed maturities | | 231,547 |
| | 2,749 |
| | 48,518 |
| | 3,151 |
| | 280,065 |
| | 5,900 |
| | 406 |
| Common stock | | 12,732 |
| | 133 |
| | 0 |
| | 0 |
| | 12,732 |
| | 133 |
| | 1 |
| Total available-for-sale securities | | $ | 244,279 |
| | $ | 2,882 |
| | $ | 48,518 |
| | $ | 3,151 |
| | $ | 292,797 |
| | $ | 6,033 |
| | 407 |
| Quality breakdown of fixed maturities: | | |
| | |
| | |
| | |
| | |
| | |
| | |
| Investment grade | | $ | 174,723 |
| | $ | 1,296 |
| | $ | 38,369 |
| | $ | 1,256 |
| | $ | 213,092 |
| | $ | 2,552 |
| | 105 |
| Non-investment grade | | 56,824 |
| | 1,453 |
| | 10,149 |
| | 1,895 |
| | 66,973 |
| | 3,348 |
| | 301 |
| Total fixed maturities | | $ | 231,547 |
| | $ | 2,749 |
| | $ | 48,518 |
| | $ | 3,151 |
| | $ | 280,065 |
| | $ | 5,900 |
| | 406 |
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Schedule of investment income, net of expenses, from portfolios |
Net investment income Interest and dividend income are recognized as earned and recorded to net investment income. Investment income, net of expenses, was generated from the following portfolios for the years ended December 31: | | | | | | | | | | | | | | (in thousands) | | 2016 | | 2015 | | 2014 | Fixed maturities | | $ | 20,175 |
| | $ | 16,457 |
| | $ | 14,173 |
| Equity securities | | 171 |
| | 1,045 |
| | 1,550 |
| Cash equivalents and other | | 1,391 |
| | 1,174 |
| | 1,207 |
| Total investment income | | 21,737 |
| | 18,676 |
| | 16,930 |
| Less: investment expenses | | 1,190 |
| | 885 |
| | 394 |
| Investment income, net of expenses | | $ | 20,547 |
| | $ | 17,791 |
| | $ | 16,536 |
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Schedule of realized gains and losses on sales of securities recognized in income based upon the specific identification method |
Realized investment gains (losses) Realized gains and losses on sales of securities are recognized in income based upon the specific identification method. Realized gains (losses) on investments were as follows for the years ended December 31: | | | | | | | | | | | | | | (in thousands) | | 2016 | | 2015 | | 2014 | Available-for-sale securities: | | | | | | | Fixed maturities: | | | | | | | Gross realized gains | | $ | 2,111 |
| | $ | 1,571 |
| | $ | 453 |
| Gross realized losses | | (2,113 | ) | | (1,764 | ) | | (333 | ) | Net realized (losses) gains | | (2 | ) | | (193 | ) | | 120 |
| Equity securities: | | |
| | |
| | | Gross realized gains | | 1 |
| | 759 |
| | 1,132 |
| Gross realized losses | | (34 | ) | | (74 | ) | | (195 | ) | Net realized (losses) gains | | (33 | ) | | 685 |
| | 937 |
| Trading securities: | | |
| | |
| | | Common stock: | | |
| | |
| | | Gross realized gains | | $ | 707 |
| | $ | 0 |
| | $ | 0 |
| Net realized gains | | 707 |
| | 0 |
| | 0 |
| Net realized investment gains | | $ | 672 |
| | $ | 492 |
| | $ | 1,057 |
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Schedule of components of other-than-temporary impairments on investments |
The components of other-than-temporary impairments on investments are included below for the years ended December 31: | | | | | | | | | | | | | | (in thousands) | | 2016 | | 2015 | | 2014 | Fixed maturities | | $ | (416 | ) | | $ | (1,558 | ) | | $ | (105 | ) | Total other-than-temporary impairments | | (416 | ) | | (1,558 | ) | | (105 | ) | Portion recognized in other comprehensive income | | 0 |
| | 0 |
| | 0 |
| Net impairment losses recognized in earnings | | $ | (416 | ) | | $ | (1,558 | ) | | $ | (105 | ) |
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Schedule of limited partnership results, generally reported on a one quarter lag |
The following table summarizes limited partnership investments by sector at December 31: | | | | | | | | | | (in thousands) | | 2016 | | 2015 | Private equity | | $ | 35,228 |
| | $ | 48,397 |
| Mezzanine debt | | 6,010 |
| | 12,701 |
| Real estate | | 12,509 |
| | 22,911 |
| Real estate - fair value option | | 4,412 |
| | 4,526 |
| Total limited partnerships | | $ | 58,159 |
| | $ | 88,535 |
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Amounts included in equity in earnings of limited partnerships by method of accounting are included below for the years ended December 31: | | | | | | | | | | | | | | (in thousands) | | 2016 | | 2015 | | 2014 | Equity in earnings of limited partnerships accounted for under the equity method | | $ | 6,273 |
| | $ | 16,545 |
| | $ | 8,517 |
| Change in fair value of limited partnerships accounted for under the fair value option | | 752 |
| | 438 |
| | 2,412 |
| Equity in earnings of limited partnerships | | $ | 7,025 |
| | $ | 16,983 |
| | $ | 10,929 |
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