ERIE INDEMNITY COMPANY | ||
(Exact name of registrant as specified in its charter) |
PENNSYLVANIA | 25-0466020 | |||
(State or other jurisdiction of | (I.R.S. Employer | |||
incorporation or organization) | Identification No.) |
100 Erie Insurance Place, Erie, Pennsylvania | 16530 | |||
(Address of principal executive offices) | (Zip Code) | |||
(814) 870-2000 | ||
(Registrant’s telephone number, including area code) |
Not applicable | ||
(Former name, former address and former fiscal year, if changed since last report) |
ITEM 1. | FINANCIAL STATEMENTS |
Three Months Ended | ||||||||
March 31, | ||||||||
2019 | 2018 | |||||||
Operating revenue | ||||||||
Management fee revenue - policy issuance and renewal services, net | $ | 430,983 | $ | 405,978 | ||||
Management fee revenue - administrative services, net | 13,951 | 13,074 | ||||||
Administrative services reimbursement revenue | 142,480 | 145,963 | ||||||
Service agreement revenue | 6,692 | 7,145 | ||||||
Total operating revenue | 594,106 | 572,160 | ||||||
Operating expenses | ||||||||
Cost of operations - policy issuance and renewal services | 365,504 | 348,630 | ||||||
Cost of operations - administrative services | 142,480 | 145,963 | ||||||
Total operating expenses | 507,984 | 494,593 | ||||||
Operating income | 86,122 | 77,567 | ||||||
Investment income | ||||||||
Net investment income | 8,517 | 6,820 | ||||||
Net realized investment gains (losses) | 2,503 | (465 | ) | |||||
Net impairment losses recognized in earnings | (78 | ) | 0 | |||||
Equity in losses of limited partnerships | (1,147 | ) | (192 | ) | ||||
Total investment income | 9,795 | 6,163 | ||||||
Interest expense, net | 449 | 553 | ||||||
Other income | 47 | 44 | ||||||
Income before income taxes | 95,515 | 83,221 | ||||||
Income tax expense | 20,204 | 17,463 | ||||||
Net income | $ | 75,311 | $ | 65,758 | ||||
Net income per share | ||||||||
Class A common stock – basic | $ | 1.62 | $ | 1.41 | ||||
Class A common stock – diluted | $ | 1.44 | $ | 1.26 | ||||
Class B common stock – basic and diluted | $ | 243 | $ | 212 | ||||
Weighted average shares outstanding – Basic | ||||||||
Class A common stock | 46,188,337 | 46,187,908 | ||||||
Class B common stock | 2,542 | 2,542 | ||||||
Weighted average shares outstanding – Diluted | ||||||||
Class A common stock | 52,312,036 | 52,310,628 | ||||||
Class B common stock | 2,542 | 2,542 | ||||||
Dividends declared per share | ||||||||
Class A common stock | $ | 0.90 | $ | 0.84 | ||||
Class B common stock | $ | 135.00 | $ | 126.00 |
Three Months Ended | ||||||||
March 31, | ||||||||
2019 | 2018 | |||||||
Net income | $ | 75,311 | $ | 65,758 | ||||
Other comprehensive income (loss), net of tax | ||||||||
Change in unrealized holding gains (losses) on available-for-sale securities | 5,478 | (5,427 | ) | |||||
Amortization of prior service costs and net actuarial loss on pension and other postretirement plans | 1,232 | 0 | ||||||
Total other comprehensive income (loss), net of tax | 6,710 | (5,427 | ) | |||||
Comprehensive income | $ | 82,021 | $ | 60,331 |
March 31, | December 31, | |||||||
2019 | 2018 | |||||||
Assets | (Unaudited) | |||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 312,045 | $ | 266,417 | ||||
Available-for-sale securities | 139,994 | 402,339 | ||||||
Receivables from Erie Insurance Exchange and affiliates | 456,135 | 449,873 | ||||||
Prepaid expenses and other current assets | 49,997 | 36,892 | ||||||
Federal income taxes recoverable | 0 | 8,162 | ||||||
Accrued investment income | 4,220 | 5,263 | ||||||
Total current assets | 962,391 | 1,168,946 | ||||||
Available-for-sale securities | 534,925 | 346,184 | ||||||
Equity securities | 12,410 | 11,853 | ||||||
Limited partnership investments | 30,038 | 34,821 | ||||||
Fixed assets, net | 144,652 | 130,832 | ||||||
Deferred income taxes, net | 22,180 | 24,101 | ||||||
Other assets | 92,860 | 61,590 | ||||||
Total assets | $ | 1,799,456 | $ | 1,778,327 | ||||
Liabilities and shareholders' equity | ||||||||
Current liabilities: | ||||||||
Commissions payable | $ | 253,002 | $ | 241,573 | ||||
Agent bonuses | 26,129 | 103,462 | ||||||
Accounts payable and accrued liabilities | 123,179 | 111,291 | ||||||
Dividends payable | 41,913 | 41,910 | ||||||
Contract liability | 34,116 | 33,854 | ||||||
Deferred executive compensation | 10,346 | 13,107 | ||||||
Federal income taxes payable | 11,946 | 0 | ||||||
Current portion of long-term borrowings | 1,891 | 1,870 | ||||||
Total current liabilities | 502,522 | 547,067 | ||||||
Defined benefit pension plans | 123,270 | 116,866 | ||||||
Long-term borrowings | 97,382 | 97,860 | ||||||
Contract liability | 17,907 | 17,873 | ||||||
Deferred executive compensation | 16,817 | 13,075 | ||||||
Other long-term liabilities | 27,754 | 11,914 | ||||||
Total liabilities | 785,652 | 804,655 | ||||||
Shareholders’ equity | ||||||||
Class A common stock, stated value $0.0292 per share; 74,996,930 shares authorized; 68,299,200 shares issued; 46,189,068 shares outstanding | 1,992 | 1,992 | ||||||
Class B common stock, convertible at a rate of 2,400 Class A shares for one Class B share, stated value $70 per share; 3,070 shares authorized; 2,542 shares issued and outstanding | 178 | 178 | ||||||
Additional paid-in-capital | 16,483 | 16,459 | ||||||
Accumulated other comprehensive loss | (123,574 | ) | (130,284 | ) | ||||
Retained earnings | 2,264,815 | 2,231,417 | ||||||
Total contributed capital and retained earnings | 2,159,894 | 2,119,762 | ||||||
Treasury stock, at cost; 22,110,132 shares held | (1,158,779 | ) | (1,157,625 | ) | ||||
Deferred compensation | 12,689 | 11,535 | ||||||
Total shareholders’ equity | 1,013,804 | 973,672 | ||||||
Total liabilities and shareholders’ equity | $ | 1,799,456 | $ | 1,778,327 |
Class A common stock | Class B common stock | Additional paid-in-capital | Accumulated other comprehensive income (loss) | Retained earnings | Treasury stock | Deferred compensation | Total shareholders' equity | |||||||||||||||||
Balance, December 31, 2018 | $ | 1,992 | $ | 178 | $ | 16,459 | $ | (130,284 | ) | $ | 2,231,417 | $ | (1,157,625 | ) | $ | 11,535 | $ | 973,672 | ||||||
Net income | 75,311 | 75,311 | ||||||||||||||||||||||
Other comprehensive income | 6,710 | 6,710 | ||||||||||||||||||||||
Dividends declared: | ||||||||||||||||||||||||
Class A $0.90 per share | (41,570 | ) | (41,570 | ) | ||||||||||||||||||||
Class B $135.00 per share | (343 | ) | (343 | ) | ||||||||||||||||||||
Net purchase of treasury stock (1) | 24 | 0 | 24 | |||||||||||||||||||||
Deferred compensation | (1,154 | ) | 1,154 | 0 | ||||||||||||||||||||
Balance, March 31, 2019 | $ | 1,992 | $ | 178 | $ | 16,483 | $ | (123,574 | ) | $ | 2,264,815 | $ | (1,158,779 | ) | $ | 12,689 | $ | 1,013,804 |
Class A common stock | Class B common stock | Additional paid-in-capital | Accumulated other comprehensive income (loss) | Retained earnings | Treasury stock | Deferred compensation | Total shareholders' equity | |||||||||||||||||
Balance, December 31, 2017 | $ | 1,992 | $ | 178 | $ | 16,470 | $ | (156,059 | ) | $ | 2,140,853 | $ | (1,155,668 | ) | $ | 9,578 | $ | 857,344 | ||||||
Cumulative effect adjustments (2) | (38,392 | ) | (38,392 | ) | ||||||||||||||||||||
Net income | 65,758 | 65,758 | ||||||||||||||||||||||
Other comprehensive loss | (5,427 | ) | (5,427 | ) | ||||||||||||||||||||
Dividends declared: | ||||||||||||||||||||||||
Class A $0.84 per share | (38,799 | ) | (38,799 | ) | ||||||||||||||||||||
Class B $126.00 per share | (320 | ) | (320 | ) | ||||||||||||||||||||
Net purchase of treasury stock (1) | (9 | ) | 0 | (9 | ) | |||||||||||||||||||
Deferred compensation | (1,663 | ) | 1,663 | 0 | ||||||||||||||||||||
Balance, March 31, 2018 | $ | 1,992 | $ | 178 | $ | 16,461 | $ | (161,486 | ) | $ | 2,129,100 | $ | (1,157,331 | ) | $ | 11,241 | $ | 840,155 |
Three Months Ended | ||||||||
March 31, | ||||||||
2019 | 2018 | |||||||
Cash flows from operating activities | ||||||||
Management fee received | $ | 433,735 | $ | 418,897 | ||||
Administrative services reimbursements received | 148,308 | 150,422 | ||||||
Service agreement fee received | 6,692 | 7,145 | ||||||
Net investment income received | 9,112 | 8,951 | ||||||
Limited partnership distributions | 1,225 | 426 | ||||||
Commissions paid to agents | (204,633 | ) | (192,803 | ) | ||||
Agents bonuses paid | (104,689 | ) | (122,607 | ) | ||||
Salaries and wages paid | (50,840 | ) | (54,668 | ) | ||||
Pension contributions and employee benefits paid | (10,875 | ) | (49,199 | ) | ||||
General operating expenses paid | (60,439 | ) | (59,033 | ) | ||||
Administrative services expenses paid | (143,046 | ) | (146,935 | ) | ||||
Income taxes recovered (paid) | 138 | (276 | ) | |||||
Interest paid | (448 | ) | (550 | ) | ||||
Net cash provided by (used in) operating activities | 24,240 | (40,230 | ) | |||||
Cash flows from investing activities | ||||||||
Purchase of investments: | ||||||||
Available-for-sale securities | (220,811 | ) | (77,263 | ) | ||||
Equity securities | 0 | (1,035 | ) | |||||
Limited partnerships | (9 | ) | (31 | ) | ||||
Proceeds from investments: | ||||||||
Available-for-sale securities sales | 149,155 | 57,717 | ||||||
Available-for-sale securities maturities/calls | 154,343 | 28,473 | ||||||
Equity securities | 0 | 1,055 | ||||||
Limited partnerships | 2,411 | 910 | ||||||
Purchase of fixed assets | (17,411 | ) | (8,691 | ) | ||||
Distributions on agent loans | (6,233 | ) | (19,310 | ) | ||||
Collections on agent loans | 2,313 | 1,436 | ||||||
Net cash provided by (used in) investing activities | 63,758 | (16,739 | ) | |||||
Cash flows from financing activities | ||||||||
Dividends paid to shareholders | (41,910 | ) | (39,116 | ) | ||||
Net payments on long-term borrowings | (460 | ) | (9 | ) | ||||
Net cash used in financing activities | (42,370 | ) | (39,125 | ) | ||||
Net increase (decrease) in cash and cash equivalents | 45,628 | (96,094 | ) | |||||
Cash and cash equivalents, beginning of period | 266,417 | 215,721 | ||||||
Cash and cash equivalents, end of period | $ | 312,045 | $ | 119,627 | ||||
Supplemental disclosure of noncash transactions | ||||||||
Operating lease assets obtained in exchange for new operating lease liabilities | $ | 32,515 | $ | — |
Three months ended March 31, | |||||||
(in thousands) | 2019 | 2018 | |||||
Management fee revenue - policy issuance and renewal services, net | $ | 430,983 | $ | 405,978 | |||
Management fee revenue - administrative services, net | 13,951 | 13,074 | |||||
Administrative services reimbursement revenue | 142,480 | 145,963 | |||||
Total administrative services | $ | 156,431 | $ | 159,037 |
Three months ended March 31, | ||||||||||||||||||||||
2019 | 2018 | |||||||||||||||||||||
(dollars in thousands, except per share data) | Allocated net income (numerator) | Weighted shares (denominator) | Per-share amount | Allocated net income (numerator) | Weighted shares (denominator) | Per-share amount | ||||||||||||||||
Class A – Basic EPS: | ||||||||||||||||||||||
Income available to Class A stockholders | $ | 74,694 | 46,188,337 | $ | 1.62 | $ | 65,220 | 46,187,908 | $ | 1.41 | ||||||||||||
Dilutive effect of stock-based awards | 0 | 22,899 | — | 0 | 21,920 | — | ||||||||||||||||
Assumed conversion of Class B shares | 617 | 6,100,800 | — | 538 | 6,100,800 | — | ||||||||||||||||
Class A – Diluted EPS: | ||||||||||||||||||||||
Income available to Class A stockholders on Class A equivalent shares | $ | 75,311 | 52,312,036 | $ | 1.44 | $ | 65,758 | 52,310,628 | $ | 1.26 | ||||||||||||
Class B – Basic and diluted EPS: | ||||||||||||||||||||||
Income available to Class B stockholders | $ | 617 | 2,542 | $ | 243 | $ | 538 | 2,542 | $ | 212 |
• | Level 1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity can access at the measurement date. |
• | Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. |
• | Level 3 – Unobservable inputs for the asset or liability. |
At March 31, 2019 | ||||||||||||||||
Fair value measurements using: | ||||||||||||||||
(in thousands) | Total | Quoted prices in active markets for identical assets Level 1 | Observable inputs Level 2 | Unobservable inputs Level 3 | ||||||||||||
Available-for-sale securities: | ||||||||||||||||
U.S. Treasury (1) | $ | 279,956 | $ | 0 | $ | 279,956 | $ | 0 | ||||||||
States & political subdivisions (1) | 27,452 | 0 | 27,452 | 0 | ||||||||||||
Corporate debt securities | 233,017 | 0 | 221,494 | 11,523 | ||||||||||||
Residential mortgage-backed securities | 6,571 | 0 | 5,656 | 915 | ||||||||||||
Commercial mortgage-backed securities | 48,144 | 0 | 46,962 | 1,182 | ||||||||||||
Collateralized debt obligations | 63,932 | 0 | 63,932 | 0 | ||||||||||||
Other debt securities | 15,847 | 0 | 15,847 | 0 | ||||||||||||
Total available-for-sale securities | 674,919 | 0 | 661,299 | 13,620 | ||||||||||||
Equity securities: | ||||||||||||||||
Nonredeemable preferred stock - financial services sector | 12,410 | 1,966 | 10,444 | 0 | ||||||||||||
Total equity securities | 12,410 | 1,966 | 10,444 | 0 | ||||||||||||
Total | $ | 687,329 | $ | 1,966 | $ | 671,743 | $ | 13,620 |
At December 31, 2018 | ||||||||||||||||
Fair value measurements using: | ||||||||||||||||
(in thousands) | Total | Quoted prices in active markets for identical assets Level 1 | Observable inputs Level 2 | Unobservable inputs Level 3 | ||||||||||||
Available-for-sale securities: | ||||||||||||||||
U.S. Treasury (1) | $ | 208,412 | $ | 0 | $ | 208,412 | $ | 0 | ||||||||
States & political subdivisions (1) | 159,023 | 0 | 159,023 | 0 | ||||||||||||
Corporate debt securities | 249,947 | 0 | 237,370 | 12,577 | ||||||||||||
Residential mortgage-backed securities | 4,609 | 0 | 4,609 | 0 | ||||||||||||
Commercial mortgage-backed securities | 46,515 | 0 | 46,515 | 0 | ||||||||||||
Collateralized debt obligations | 64,239 | 0 | 64,239 | 0 | ||||||||||||
Other debt securities | 15,778 | 0 | 15,778 | 0 | ||||||||||||
Total available-for-sale securities | 748,523 | 0 | 735,946 | 12,577 | ||||||||||||
Equity securities: | ||||||||||||||||
Nonredeemable preferred stock - financial services sector | 11,853 | 1,809 | 10,044 | 0 | ||||||||||||
Total equity securities | 11,853 | 1,809 | 10,044 | 0 | ||||||||||||
Other limited partnership investments (2) | 3,206 | — | — | — | ||||||||||||
Total | $ | 763,582 | $ | 1,809 | $ | 745,990 | $ | 12,577 |
(1) | In the fourth quarter of 2018, we began selling off our municipal bonds as part of a portfolio rebalancing. We intend to sell the remaining municipal bonds in the second quarter of 2019. We have currently invested proceeds from these sales primarily in U.S. Treasuries. |
(2) | The limited partnership investment measured at fair value represents one real estate fund included on the balance sheet as a limited partnership investment reported under the fair value option using the net asset value (NAV) practical expedient, which is not required to be categorized in the fair value hierarchy. The fair value of this investment is based on our proportionate share of the NAV from the most recent partners' capital statements received from the general partner, which is generally one quarter prior to our balance sheet date. We consider observable market data and perform a review validating the appropriateness of the NAV at each balance sheet date. Liquidation of this fund was completed in January 2019. There were no unfunded commitments related to the investment at December 31, 2018. During the three months ended March 31, 2019, distributions totaling $3.2 million were received from this investment. During the year ended December 31, 2018, no contributions were made and distributions totaling $1.2 million were received from this investment. |
At March 31, 2019 | ||||||||||||||||
(in thousands) | Total | Level 1 | Level 2 | Level 3 | ||||||||||||
Available-for-sale securities: | ||||||||||||||||
Priced via pricing services | $ | 673,729 | $ | 0 | $ | 661,299 | $ | 12,430 | ||||||||
Priced via market comparables/broker quotes | 125 | 0 | 0 | 125 | ||||||||||||
Priced via internal modeling | 1,065 | 0 | 0 | 1,065 | ||||||||||||
Total available-for-sale securities | 674,919 | 0 | 661,299 | 13,620 | ||||||||||||
Equity securities priced via pricing services | 12,410 | 1,966 | 10,444 | 0 | ||||||||||||
Total | $ | 687,329 | $ | 1,966 | $ | 671,743 | $ | 13,620 |
At March 31, 2019 | |||||||||
(dollars in thousands) | Fair value | Valuation techniques | Unobservable input | Range (basis points) | Weighted average (basis points) | Impact of increase in input on estimated fair value | |||
Corporate debt securities - bank loans | $ | 11,373 | Market approach | Market residual yield (1) | -186 - +1,479 | +33 | Decrease | ||
Commercial mortgage-backed securities | 1,057 | Market approach | Credit spread (2) | +42 - +275 | +181 | Decrease |
(1) | Values for bank loans classified as Level 3 are determined by our pricing vendor based on model yield curves adjusted for observable inputs. The market residual yield represents a net adjustment to the model yield curve for unobservable input factors. |
(2) | Values for commercial mortgage-backed securities classified as Level 3 include adjustments to the base spread over the appropriate U.S. Treasury yield assuming no prepayments until penalty provisions have expired. |
(in thousands) | Beginning balance at December 31, 2018 | Included in earnings(1) | Included in other comprehensive income | Purchases | Sales | Transfers into Level 3(2) | Transfers out of Level 3(2) | Ending balance at March 31, 2019 | ||||||||||||||||||||||||
Available-for-sale securities: | ||||||||||||||||||||||||||||||||
Corporate debt securities | $ | 12,577 | $ | 11 | $ | 268 | $ | 734 | $ | (431 | ) | $ | 4,813 | $ | (6,449 | ) | $ | 11,523 | ||||||||||||||
Residential mortgage-backed securities | 0 | 0 | 0 | 921 | (6 | ) | 0 | 0 | 915 | |||||||||||||||||||||||
Commercial mortgage-backed securities | 0 | (2 | ) | 0 | 478 | 0 | 706 | 0 | 1,182 | |||||||||||||||||||||||
Total Level 3 available-for-sale securities | $ | 12,577 | $ | 9 | $ | 268 | $ | 2,133 | $ | (437 | ) | $ | 5,519 | $ | (6,449 | ) | $ | 13,620 |
(in thousands) | Beginning balance at December 31, 2017 | Included in earnings(1) | Included in other comprehensive income | Purchases | Sales | Transfers into Level 3(2) | Transfers out of Level 3(2) | Ending balance at March 31, 2018 | ||||||||||||||||||||||||
Available-for-sale securities: | ||||||||||||||||||||||||||||||||
Corporate debt securities | $ | 7,879 | $ | (9 | ) | $ | 5 | $ | 0 | $ | (493 | ) | $ | 2,412 | $ | (3,485 | ) | $ | 6,309 | |||||||||||||
Collateralized debt obligations | 2,200 | 0 | 7 | 0 | 0 | 0 | (2,207 | ) | 0 | |||||||||||||||||||||||
Total Level 3 available-for-sale securities | $ | 10,079 | $ | (9 | ) | $ | 12 | $ | 0 | $ | (493 | ) | $ | 2,412 | $ | (5,692 | ) | $ | 6,309 |
(1) | These amounts are reported in the Statements of Operations as net investment income and net realized investment gains (losses) for the each of the periods presented above. |
(2) | Transfers into and/or (out) of Level 3 are primarily attributable to the availability of market observable information and the re-evaluation of the observability of pricing inputs. |
Three months ended March 31, | ||||||||
(in thousands) | 2019 | 2018 | ||||||
Available-for-sale securities: | ||||||||
Corporate debt securities | $ | 157 | $ | 10 | ||||
Residential mortgage-backed securities | 0 | — | ||||||
Commercial mortgage-backed securities | 4 | — | ||||||
Net unrealized gains on Level 3 securities held at reporting date | $ | 161 | $ | 10 |
At March 31, 2019 | At December 31, 2018 | |||||||||||||||
(in thousands) | Carrying value | Fair value | Carrying value | Fair value | ||||||||||||
Agent loans | $ | 61,926 | $ | 61,487 | $ | 58,006 | $ | 54,110 | ||||||||
Long-term borrowings | 99,273 | 95,958 | 99,730 | 94,057 |
At March 31, 2019 | ||||||||||||||||
(in thousands) | Amortized cost | Gross unrealized gains | Gross unrealized losses | Estimated fair value | ||||||||||||
Available-for-sale securities: | ||||||||||||||||
U.S. Treasury (1) | $ | 279,553 | $ | 503 | $ | 100 | $ | 279,956 | ||||||||
States & political subdivisions (1) | 26,931 | 521 | 0 | 27,452 | ||||||||||||
Corporate debt securities | 235,546 | 985 | 3,514 | 233,017 | ||||||||||||
Residential mortgage-backed securities | 6,513 | 67 | 9 | 6,571 | ||||||||||||
Commercial mortgage-backed securities | 48,120 | 273 | 249 | 48,144 | ||||||||||||
Collateralized debt obligations | 64,432 | 17 | 517 | 63,932 | ||||||||||||
Other debt securities | 15,752 | 95 | 0 | 15,847 | ||||||||||||
Total available-for-sale securities | $ | 676,847 | $ | 2,461 | $ | 4,389 | $ | 674,919 |
At December 31, 2018 | ||||||||||||||||
(in thousands) | Amortized cost | Gross unrealized gains | Gross unrealized losses | Estimated fair value | ||||||||||||
Available-for-sale securities: | ||||||||||||||||
U.S. Treasury (1) | $ | 208,610 | $ | 18 | $ | 216 | $ | 208,412 | ||||||||
States & political subdivisions (1) | 157,003 | 2,020 | 0 | 159,023 | ||||||||||||
Corporate debt securities | 259,362 | 139 | 9,554 | 249,947 | ||||||||||||
Residential mortgage-backed securities | 4,603 | 38 | 32 | 4,609 | ||||||||||||
Commercial mortgage-backed securities | 47,022 | 80 | 587 | 46,515 | ||||||||||||
Collateralized debt obligations | 65,039 | 30 | 830 | 64,239 | ||||||||||||
Other debt securities | 15,756 | 33 | 11 | 15,778 | ||||||||||||
Total available-for-sale securities | $ | 757,395 | $ | 2,358 | $ | 11,230 | $ | 748,523 |
(1) | In the fourth quarter of 2018, we began selling off our municipal bonds as part of a portfolio rebalancing. We intend to sell the remaining municipal bonds in the second quarter of 2019. We have currently invested proceeds from these sales primarily in U.S. Treasuries. |
At March 31, 2019 | ||||||||
Amortized | Estimated | |||||||
(in thousands) | cost | fair value | ||||||
Due in one year or less | $ | 123,334 | $ | 123,200 | ||||
Due after one year through five years | 320,044 | 319,564 | ||||||
Due after five years through ten years | 133,675 | 132,586 | ||||||
Due after ten years | 99,794 | 99,569 | ||||||
Total available-for-sale securities (1) | $ | 676,847 | $ | 674,919 |
(1) | The contractual maturities of our municipal bond portfolio are included in the table. However, given our intent to sell this portfolio, municipal bond securities are classified as current assets in our Statements of Financial Position. |
At March 31, 2019 | |||||||||||||||||||||||||||
Less than 12 months | 12 months or longer | Total | |||||||||||||||||||||||||
(dollars in thousands) | Fair value | Unrealized losses | Fair value | Unrealized losses | Fair value | Unrealized losses | No. of holdings | ||||||||||||||||||||
Available-for-sale securities: | |||||||||||||||||||||||||||
U.S. Treasury | $ | 0 | $ | 0 | $ | 11,748 | $ | 100 | $ | 11,748 | $ | 100 | 4 | ||||||||||||||
Corporate debt securities | 82,879 | 1,647 | 94,393 | 1,867 | 177,272 | 3,514 | 471 | ||||||||||||||||||||
Residential mortgage-backed securities | 1,208 | 4 | 388 | 5 | 1,596 | 9 | 2 | ||||||||||||||||||||
Commercial mortgage-backed securities | 9,491 | 17 | 19,023 | 232 | 28,514 | 249 | 27 | ||||||||||||||||||||
Collateralized debt obligations | 59,394 | 468 | 3,231 | 49 | 62,625 | 517 | 45 | ||||||||||||||||||||
Other debt securities | 100 | 0 | 0 | 0 | 100 | 0 | 1 | ||||||||||||||||||||
Total available-for-sale securities | $ | 153,072 | $ | 2,136 | $ | 128,783 | $ | 2,253 | $ | 281,855 | $ | 4,389 | 550 | ||||||||||||||
Quality breakdown of available-for-sale securities: | |||||||||||||||||||||||||||
Investment grade | $ | 77,871 | $ | 534 | $ | 94,217 | $ | 807 | $ | 172,088 | $ | 1,341 | 124 | ||||||||||||||
Non-investment grade | 75,201 | 1,602 | 34,566 | 1,446 | 109,767 | 3,048 | 426 | ||||||||||||||||||||
Total available-for-sale securities | $ | 153,072 | $ | 2,136 | $ | 128,783 | $ | 2,253 | $ | 281,855 | $ | 4,389 | 550 |
At December 31, 2018 | |||||||||||||||||||||||||||
Less than 12 months | 12 months or longer | Total | |||||||||||||||||||||||||
(dollars in thousands) | Fair value | Unrealized losses | Fair value | Unrealized losses | Fair value | Unrealized losses | No. of holdings | ||||||||||||||||||||
Available-for-sale securities: | |||||||||||||||||||||||||||
U.S. Treasury | $ | 129,474 | $ | 19 | $ | 11,656 | $ | 197 | $ | 141,130 | $ | 216 | 7 | ||||||||||||||
Corporate debt securities | 157,300 | 6,866 | 86,586 | 2,688 | 243,886 | 9,554 | 635 | ||||||||||||||||||||
Residential mortgage-backed securities | 777 | 6 | 1,618 | 26 | 2,395 | 32 | 3 | ||||||||||||||||||||
Commercial mortgage-backed securities | 17,624 | 175 | 16,997 | 412 | 34,621 | 587 | 30 | ||||||||||||||||||||
Collateralized debt obligations | 55,246 | 826 | 1,248 | 4 | 56,494 | 830 | 39 | ||||||||||||||||||||
Other debt securities | 8,213 | 11 | 0 | 0 | 8,213 | 11 | 7 | ||||||||||||||||||||
Total available-for-sale securities | $ | 368,634 | $ | 7,903 | $ | 118,105 | $ | 3,327 | $ | 486,739 | $ | 11,230 | 721 | ||||||||||||||
Quality breakdown of available-for-sale securities: | |||||||||||||||||||||||||||
Investment grade | $ | 242,821 | $ | 1,295 | $ | 98,118 | $ | 1,641 | $ | 340,939 | $ | 2,936 | 147 | ||||||||||||||
Non-investment grade | 125,813 | 6,608 | 19,987 | 1,686 | 145,800 | 8,294 | 574 | ||||||||||||||||||||
Total available-for-sale securities | $ | 368,634 | $ | 7,903 | $ | 118,105 | $ | 3,327 | $ | 486,739 | $ | 11,230 | 721 |
Three months ended March 31, | ||||||||
(in thousands) | 2019 | 2018 | ||||||
Fixed maturities (1) | $ | 6,161 | $ | 6,110 | ||||
Equity securities | 141 | 142 | ||||||
Cash equivalents and other | 2,465 | 1,008 | ||||||
Total investment income | 8,767 | 7,260 | ||||||
Less: investment expenses | 250 | 440 | ||||||
Investment income, net of expenses | $ | 8,517 | $ | 6,820 |
(1) | Includes interest earned on note receivable from Erie Family Life Insurance Company of $0.4 million for the three months ended March 31, 2018. The note was repaid in full in December 2018. |
Three months ended March 31, | ||||||||
(in thousands) | 2019 | 2018 | ||||||
Available-for-sale securities: | ||||||||
Gross realized gains | $ | 2,258 | $ | 340 | ||||
Gross realized losses | (340 | ) | (685 | ) | ||||
Net realized gains (losses) on available-for-sale securities | 1,918 | (345 | ) | |||||
Equity securities | 585 | (120 | ) | |||||
Net realized investment gains (losses) | $ | 2,503 | $ | (465 | ) |
Three months ended March 31, | ||||||||
(in thousands) | 2019 | 2018 | ||||||
Equity securities: | ||||||||
Net gains (losses) recognized during the period | $ | 585 | $ | (120 | ) | |||
Less: net losses recognized on securities sold | 0 | (34 | ) | |||||
Net unrealized gains (losses) recognized on securities held at reporting date | $ | 585 | $ | (86 | ) |
Three months ended March 31, | ||||||||
(in thousands) | 2019 | 2018 | ||||||
Equity in (losses) earnings of limited partnerships - equity method | $ | (1,147 | ) | $ | 195 | |||
Change in fair value of limited partnerships - fair value option | 0 | (387 | ) | |||||
Equity in losses of limited partnerships | $ | (1,147 | ) | $ | (192 | ) |
(in thousands) | At March 31, 2019 | At December 31, 2018 | ||||||
Private equity | $ | 26,691 | $ | 28,271 | ||||
Mezzanine debt | 1,118 | 1,152 | ||||||
Real estate | 2,229 | 2,192 | ||||||
Real estate - fair value option | 0 | 3,206 | ||||||
Total limited partnership investments | $ | 30,038 | $ | 34,821 |
(in thousands) | March 31, 2019 | |||
Operating lease assets | $ | 28,611 | ||
Operating lease liabilities - current | $ | 12,466 | ||
Operating lease liabilities - long-term | 16,589 | |||
Total operating lease liabilities | $ | 29,055 |
(in thousands) | |||
Year | Principal payments | ||
2019 | $ | 1,410 | |
2020 | 1,953 | ||
2021 | 2,040 | ||
2022 | 2,130 | ||
2023 | 2,225 | ||
Thereafter | 89,782 |
Three months ended March 31, | ||||||||
(in thousands) | 2019 | 2018 | ||||||
Service cost for benefits earned | $ | 8,463 | $ | 9,513 | ||||
Interest cost on benefits obligation | 9,827 | 8,846 | ||||||
Expected return on plan assets | (11,871 | ) | (12,815 | ) | ||||
Prior service cost amortization | 349 | 338 | ||||||
Net actuarial loss amortization | 1,278 | 3,202 | ||||||
Pension plan cost (1) | $ | 8,046 | $ | 9,084 |
(1) | The components of pension plan costs other than the service cost component are included in the line item "Other income" in the Statements of Operations after reimbursements from the Exchange and its subsidiaries. |
Three months ended | Three months ended | |||||||||||||||||||
March 31, 2019 | March 31, 2018 | |||||||||||||||||||
(in thousands) | Before Tax | Income Tax | Net | Before Tax | Income Tax | Net | ||||||||||||||
Investment securities: | ||||||||||||||||||||
AOCI (loss), beginning of period | $ | (9,169 | ) | $ | (1,926 | ) | $ | (7,243 | ) | $ | 3,410 | $ | 716 | $ | 2,694 | |||||
OCI (loss) before reclassifications | 8,774 | 1,843 | 6,931 | (7,130 | ) | (1,497 | ) | (5,633 | ) | |||||||||||
Realized investment (gains) losses | (1,918 | ) | (403 | ) | (1,515 | ) | 345 | 72 | 273 | |||||||||||
Impairment losses | 78 | 16 | 62 | 0 | 0 | 0 | ||||||||||||||
Cumulative effect of adopting ASU 2016-01 (1) | — | — | — | (85 | ) | (18 | ) | (67 | ) | |||||||||||
OCI (loss) | 6,934 | 1,456 | 5,478 | (6,870 | ) | (1,443 | ) | (5,427 | ) | |||||||||||
AOCI (loss), end of period | $ | (2,235 | ) | $ | (470 | ) | $ | (1,765 | ) | $ | (3,460 | ) | $ | (727 | ) | $ | (2,733 | ) | ||
Pension and other postretirement plans: | ||||||||||||||||||||
AOCI (loss), beginning of period | $ | (155,749 | ) | $ | (32,708 | ) | $ | (123,041 | ) | $ | (200,954 | ) | $ | (42,201 | ) | $ | (158,753 | ) | ||
Amortization of prior service costs (2) | 349 | 73 | 276 | 0 | 0 | 0 | ||||||||||||||
Amortization of net actuarial loss (2) | 1,210 | 254 | 956 | 0 | 0 | 0 | ||||||||||||||
OCI | 1,559 | 327 | 1,232 | 0 | 0 | 0 | ||||||||||||||
AOCI (loss), end of period | $ | (154,190 | ) | $ | (32,381 | ) | $ | (121,809 | ) | $ | (200,954 | ) | $ | (42,201 | ) | $ | (158,753 | ) | ||
Total | ||||||||||||||||||||
AOCI (loss), beginning of period | $ | (164,918 | ) | $ | (34,634 | ) | $ | (130,284 | ) | $ | (197,544 | ) | $ | (41,485 | ) | $ | (156,059 | ) | ||
Investment securities | 6,934 | 1,456 | 5,478 | (6,870 | ) | (1,443 | ) | (5,427 | ) | |||||||||||
Pension and other postretirement plans | 1,559 | 327 | 1,232 | 0 | 0 | 0 | ||||||||||||||
OCI (loss) | 8,493 | 1,783 | 6,710 | (6,870 | ) | (1,443 | ) | (5,427 | ) | |||||||||||
AOCI (loss), end of period | $ | (156,425 | ) | $ | (32,851 | ) | $ | (123,574 | ) | $ | (204,414 | ) | $ | (42,928 | ) | $ | (161,486 | ) |
(1) | ASU 2016-01 required a reclassification of unrealized losses of equity securities from AOCI to retained earnings at January 1, 2018. |
(2) | Effective January 1, 2019, amounts reclassified from AOCI related to amortization of prior service costs and net actuarial loss were recorded during interim periods. Prior to 2019, amounts reclassified for these items were recorded on an annual basis. These components are included in the computation of net periodic pension cost. See Note 9, "Postretirement Benefits", for additional information. |
ITEM 2. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
• | dependence upon our relationship with the Exchange and the management fee under the agreement with the subscribers at the Exchange; |
• | dependence upon our relationship with the Exchange and the growth of the Exchange, including: |
◦ | general business and economic conditions; |
◦ | factors affecting insurance industry competition; |
◦ | dependence upon the independent agency system; and |
◦ | ability to maintain our reputation for customer service; |
• | dependence upon our relationship with the Exchange and the financial condition of the Exchange, including: |
◦ | the Exchange's ability to maintain acceptable financial strength ratings; |
◦ | factors affecting the quality and liquidity of the Exchange's investment portfolio; |
◦ | changes in government regulation of the insurance industry; |
◦ | emerging claims and coverage issues in the industry; and |
◦ | severe weather conditions or other catastrophic losses, including terrorism; |
• | costs of providing policy issuance and renewal services to the Exchange under the subscriber's agreement; |
• | credit risk from the Exchange; |
• | ability to attract and retain talented management and employees; |
• | ability to ensure system availability and effectively manage technology initiatives; |
• | difficulties with technology or data security breaches, including cyber attacks; |
• | ability to maintain uninterrupted business operations; |
• | factors affecting the quality and liquidity of our investment portfolio; |
• | our ability to meet liquidity needs and access capital; and |
• | outcome of pending and potential litigation. |
Three months ended March 31, | ||||||||||
(dollars in thousands, except per share data) | 2019 | 2018 | % Change | |||||||
(Unaudited) | ||||||||||
Operating income | $ | 86,122 | $ | 77,567 | 11.0 | % | ||||
Total investment income | 9,795 | 6,163 | 58.9 | |||||||
Interest expense, net | 449 | 553 | (18.7 | ) | ||||||
Other income | 47 | 44 | 7.3 | |||||||
Income before income taxes | 95,515 | 83,221 | 14.8 | |||||||
Income tax expense | 20,204 | 17,463 | 15.7 | |||||||
Net income | $ | 75,311 | $ | 65,758 | 14.5 | % | ||||
Net income per share - diluted | $ | 1.44 | $ | 1.26 | 14.5 | % |
Three months ended March 31, | ||||||||||
(dollars in thousands) | 2019 | 2018 | % Change | |||||||
(Unaudited) | ||||||||||
Policy issuance and renewal services | ||||||||||
Direct and affiliated assumed premiums written by the Exchange | $ | 1,784,520 | $ | 1,682,794 | 6.0 | % | ||||
Management fee rate | 24.2 | % | 24.2 | % | ||||||
Management fee revenue | 431,854 | 407,236 | 6.0 | |||||||
Change in allowance for management fee returned on cancelled policies (1) | (871 | ) | (1,258 | ) | 30.8 | |||||
Management fee revenue - policy issuance and renewal services, net | $ | 430,983 | $ | 405,978 | 6.2 | % | ||||
Administrative services | ||||||||||
Direct and affiliated assumed premiums written by the Exchange | $ | 1,784,520 | $ | 1,682,794 | 6.0 | % | ||||
Management fee rate | 0.8 | % | 0.8 | % | ||||||
Management fee revenue | 14,276 | 13,462 | 6.0 | |||||||
Change in contract liability (2) | (310 | ) | (374 | ) | 17.1 | |||||
Change in allowance for management fee returned on cancelled policies (1) | (15 | ) | (14 | ) | (5.8 | ) | ||||
Management fee revenue - administrative services, net | 13,951 | 13,074 | 6.7 | |||||||
Administrative services reimbursement revenue | 142,480 | 145,963 | (2.4 | ) | ||||||
Total revenue from administrative services | $ | 156,431 | $ | 159,037 | (1.6 | ) | % |
(1) | Management fees are returned to the Exchange when policies are cancelled mid-term and unearned premiums are refunded. We record an estimated allowance for management fees returned on mid-term policy cancellations. This estimated allowance has been allocated between the two performance obligations consistent with the revenue allocation proportion. |
(2) | Management fee revenue - administrative services is recognized over time as the services are performed. See Part I, Item 1. "Financial Statements - Note 3, Revenue, of Notes to Financial Statements" contained within this report. |
Three months ended March 31, | ||||||||||
(dollars in thousands) | 2019 | 2018 | % Change | |||||||
(Unaudited) | ||||||||||
Management fee revenue - policy issuance and renewal services, net | $ | 430,983 | $ | 405,978 | 6.2 | % | ||||
Service agreement revenue | 6,692 | 7,145 | (6.3 | ) | ||||||
437,675 | 413,123 | 5.9 | ||||||||
Cost of policy issuance and renewal services | 365,504 | 348,630 | 4.8 | |||||||
Operating income - policy issuance and renewal services | $ | 72,171 | $ | 64,493 | 11.9 | % |
Three months ended March 31, | ||||||||||
(dollars in thousands) | 2019 | 2018 | % Change | |||||||
(Unaudited) | ||||||||||
Commissions: | ||||||||||
Total commissions | $ | 242,982 | $ | 234,094 | 3.8 | % | ||||
Non-commission expense: | ||||||||||
Underwriting and policy processing | $ | 38,685 | $ | 38,594 | 0.2 | % | ||||
Information technology | 39,430 | 33,949 | 16.1 | |||||||
Sales and advertising | 12,810 | 14,772 | (13.3 | ) | ||||||
Customer service | 8,316 | 8,245 | 0.9 | |||||||
Administrative and other | 23,281 | 18,976 | 22.7 | |||||||
Total non-commission expense | 122,522 | 114,536 | 7.0 | |||||||
Total cost of policy issuance and renewal services | $ | 365,504 | $ | 348,630 | 4.8 | % |
Three months ended March 31, | ||||||||||
(dollars in thousands) | 2019 | 2018 | % Change | |||||||
(Unaudited) | ||||||||||
Management fee revenue - administrative services, net | $ | 13,951 | $ | 13,074 | 6.7 | % | ||||
Administrative services reimbursement revenue | 142,480 | 145,963 | (2.4 | ) | ||||||
Total revenue allocated to administrative services | 156,431 | 159,037 | (1.6 | ) | ||||||
Administrative services expenses | ||||||||||
Claims handling services | 124,199 | 128,105 | (3.0 | ) | ||||||
Investment management services | 8,783 | 8,288 | 6.0 | |||||||
Life management services | 9,498 | 9,570 | (0.8 | ) | ||||||
Operating income - administrative services | $ | 13,951 | $ | 13,074 | 6.7 | % |
Three months ended March 31, | |||||||||
(dollars in thousands) | 2019 | 2018 | % Change | ||||||
(Unaudited) | |||||||||
Net investment income | $ | 8,517 | $ | 6,820 | 24.9 | % | |||
Net realized investment gains (losses) | 2,503 | (465 | ) | NM | |||||
Net impairment losses recognized in earnings | (78 | ) | 0 | NM | |||||
Equity in losses of limited partnerships | (1,147 | ) | (192 | ) | NM | ||||
Total investment income | $ | 9,795 | $ | 6,163 | 58.9 | % |
Three months ended March 31, | ||||||||
(in thousands) | 2019 | 2018 | ||||||
Securities sold: | (Unaudited) | |||||||
Fixed maturities | $ | 1,918 | $ | (345 | ) | |||
Equity securities | 0 | (59 | ) | |||||
Equity securities change in fair value (1) | 585 | (61 | ) | |||||
Net realized investment gains (losses) (2) | $ | 2,503 | $ | (465 | ) |
(1) | The fair value of our equity portfolio is based upon exchange traded prices provided by a nationally recognized pricing service. |
(2) | See Part I, Item 1. "Financial Statements - Note 6, Investments, of Notes to Financial Statements" contained within this report for additional disclosures regarding net realized investment gains (losses). |
Three months ended March 31, | ||||||||
(in thousands) | 2019 | 2018 | ||||||
(Unaudited) | ||||||||
Private equity | $ | (1,195 | ) | $ | 336 | |||
Mezzanine debt | (5 | ) | 78 | |||||
Real estate | 53 | (606 | ) | |||||
Equity in losses of limited partnerships | $ | (1,147 | ) | $ | (192 | ) |
Carrying value at | Carrying value at | |||||||||||||
(dollars in thousands) | March 31, 2019 | % to total | December 31, 2018 | % to total | ||||||||||
(Unaudited) | ||||||||||||||
Fixed maturities | $ | 674,919 | 87 | % | $ | 748,523 | 88 | % | ||||||
Equity securities: | ||||||||||||||
Preferred stock | 12,410 | 2 | 11,853 | 1 | ||||||||||
Limited partnerships: | ||||||||||||||
Private equity | 26,691 | 3 | 28,271 | 3 | ||||||||||
Mezzanine debt | 1,118 | 0 | 1,152 | 0 | ||||||||||
Real estate | 2,229 | 0 | 5,398 | 1 | ||||||||||
Other investments (1) | 62,316 | 8 | 58,394 | 7 | ||||||||||
Total investments | $ | 779,683 | 100 | % | $ | 853,591 | 100 | % |
(1) | Other investments primarily include agent loans. Agent loans are included with other assets in the Statements of Financial Position. |
At March 31, 2019 | ||||||||||||||||||||||||
(in thousands) | (Unaudited) | |||||||||||||||||||||||
Industry Sector | AAA | AA | A | BBB | Non- investment grade | Fair value | ||||||||||||||||||
Basic materials | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 14,887 | $ | 14,887 | ||||||||||||
Communications | 0 | 1,984 | 0 | 3,529 | 21,603 | 27,116 | ||||||||||||||||||
Consumer | 0 | 0 | 1,018 | 18,727 | 49,597 | 69,342 | ||||||||||||||||||
Diversified | 0 | 0 | 0 | 0 | 1,336 | 1,336 | ||||||||||||||||||
Energy | 0 | 0 | 0 | 3,968 | 15,819 | 19,787 | ||||||||||||||||||
Financial | 0 | 1,992 | 13,948 | 19,625 | 16,381 | 51,946 | ||||||||||||||||||
Government-municipal | 13,839 | 8,858 | 4,755 | 0 | 0 | 27,452 | ||||||||||||||||||
Industrial | 0 | 0 | 2,492 | 4,191 | 22,238 | 28,921 | ||||||||||||||||||
Structured securities (2) | 97,360 | 28,113 | 8,024 | 997 | 0 | 134,494 | ||||||||||||||||||
Technology | 0 | 0 | 0 | 3,477 | 13,085 | 16,562 | ||||||||||||||||||
U.S. Treasury | 74,710 | 205,246 | 0 | 0 | 0 | 279,956 | ||||||||||||||||||
Utilities | 0 | 0 | 0 | 992 | 2,128 | 3,120 | ||||||||||||||||||
Total | $ | 185,909 | $ | 246,193 | $ | 30,237 | $ | 55,506 | $ | 157,074 | $ | 674,919 |
(1) | Ratings are supplied by S&P, Moody’s, and Fitch. The table is based upon the lowest rating for each security. |
(2) | Structured securities include residential mortgage-backed securities, commercial mortgage-backed securities, collateralized debt obligations, and asset-backed securities. |
(in thousands) | At March 31, 2019 | At December 31, 2018 | ||||||
(Unaudited) | ||||||||
Financial | $ | 12,410 | $ | 11,853 | ||||
Total | $ | 12,410 | $ | 11,853 |
(in thousands) | 2019 | 2018 | ||||||
(Unaudited) | ||||||||
Net cash provided by (used in) operating activities | $ | 24,240 | $ | (40,230 | ) | |||
Net cash provided by (used in) investing activities | 63,758 | (16,739 | ) | |||||
Net cash used in financing activities | (42,370 | ) | (39,125 | ) | ||||
Net increase (decrease) in cash and cash equivalents | $ | 45,628 | $ | (96,094 | ) |
ITEM 3. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
ITEM 4. | CONTROLS AND PROCEDURES |
ITEM 1. | LEGAL PROCEEDINGS |
ITEM 1A. | RISK FACTORS |
ITEM 2. | UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS |
ITEM 6. | EXHIBITS |
Exhibit | ||
Number | Description of Exhibit | |
10.1* | ||
31.1* | ||
31.2* | ||
32* | ||
101.INS* | XBRL Instance Document. | |
101.SCH* | XBRL Taxonomy Extension Schema Document. | |
101.CAL* | XBRL Taxonomy Extension Calculation Linkbase Document. | |
101.DEF* | XBRL Taxonomy Extension Definition Linkbase Document. | |
101.LAB* | XBRL Taxonomy Extension Label Linkbase Document. | |
101.PRE* | XBRL Taxonomy Extension Presentation Linkbase Document. |
Erie Indemnity Company | ||||
(Registrant) | ||||
Date: | May 2, 2019 | By: | /s/ Timothy G. NeCastro | |
Timothy G. NeCastro, President & CEO | ||||
By: | /s/ Gregory J. Gutting | |||
Gregory J. Gutting, Executive Vice President & CFO |
1. | Section 7.3 of the Plan is hereby amended in its entirety and shall read as follows, effective January 1, 2019: |
7.3 | Safe Harbor Distribution |
(a) | the distribution is not in excess of the amount of the immediate and heavy financial need of the Eligible Applicant including any amounts necessary to pay any federal, state or local income taxes or penalties reasonably anticipated to result from such distribution; and |
(b) | the Eligible Applicant has obtained all other forms of distribution and nontaxable loans currently available from all plans maintained by an Employer. |
2. | Section 11.3 of the Plan is hereby amended in its entirety and shall read as follows, effective April 1, 2019: |
11.3 | Expenses |
ERIE INDEMNITY COMPANY | ||
ATTEST: | ||
/s/ William D. Gheres | By: /s/ Gregory J. Gutting | |
Title: EVP & Chief Financial Officer | ||
Date: | May 2, 2019 | |
/s/ Timothy G. NeCastro | ||
Timothy G. NeCastro | ||
President & CEO |
Date: | May 2, 2019 | |
/s/ Gregory J. Gutting | ||
Gregory J. Gutting | ||
Executive Vice President & CFO |
(1) | The Quarterly Report on Form 10-Q of the Company for the quarterly period ended March 31, 2019 (the "Report") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m); and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
/s/ Timothy G. NeCastro | |
Timothy G. NeCastro | |
President & CEO | |
/s/ Gregory J. Gutting | |
Gregory J. Gutting | |
Executive Vice President & CFO | |
May 2, 2019 |
Document and Entity Information - shares |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Apr. 12, 2019 |
|
Entity Registrant Name | ERIE INDEMNITY CO | |
Entity Central Index Key | 0000922621 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Class A Common Stock | ||
Entity Common Stock, Shares Outstanding | 46,189,068 | |
Class B Common Stock | ||
Entity Common Stock, Shares Outstanding | 2,542 |
STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 75,311 | $ 65,758 |
Other comprehensive income (loss), net of tax | ||
Change in unrealized holding gains (losses) on available-for-sale securities | 5,478 | (5,427) |
Amortization of prior service costs and net actuarial loss on pension and other postretirement plans | 1,232 | 0 |
Total other comprehensive income (loss), net of tax | 6,710 | (5,427) |
Comprehensive income | $ 82,021 | $ 60,331 |
STATEMENTS OF FINANCIAL POSITION (Parenthetical) - $ / shares |
Mar. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
Treasury stock (in shares) | 22,110,132 | 22,110,132 |
Class A Common Stock | ||
Common stock, stated value per share (in dollars per share) | $ 0.0292 | $ 0.0292 |
Common stock, authorized (in shares) | 74,996,930 | 74,996,930 |
Common stock, issued (in shares) | 68,299,200 | 68,299,200 |
Common stock, outstanding (in shares) | 46,189,068 | 46,189,068 |
Class B Common Stock | ||
Common stock, stated value per share (in dollars per share) | $ 70 | $ 70 |
Common stock, authorized (in shares) | 3,070 | 3,070 |
Common stock, issued (in shares) | 2,542 | 2,542 |
Common stock, outstanding (in shares) | 2,542 | 2,542 |
Ratio for converting shares of Class B common stock into shares of Class A common stock (as a percent) | 2400.00% | 2400.00% |
STATEMENTS OF SHAREHOLDERS' EQUITY (UNAUDITED) - USD ($) $ in Thousands |
Total |
Class A Common Stock |
Class B Common Stock |
Common stock
Class A Common Stock
|
Common stock
Class B Common Stock
|
Additional paid-in-capital |
Accumulated other comprehensive income (loss) |
Retained earnings |
Retained earnings
Class A Common Stock
|
Retained earnings
Class B Common Stock
|
Treasury stock |
Deferred compensation |
|||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Beginning balance at Dec. 31, 2017 | $ 857,344 | $ 1,992 | $ 178 | $ 16,470 | $ (156,059) | $ 2,140,853 | $ (1,155,668) | $ 9,578 | |||||||||
Increase (decrease) in shareholders' equity | |||||||||||||||||
Net income | 65,758 | 65,758 | |||||||||||||||
OCI (loss) | (5,427) | (5,427) | |||||||||||||||
Dividends declared: | $ (38,799) | $ (320) | $ (38,799) | $ (320) | |||||||||||||
Net purchase of treasury stock | [1] | (9) | (9) | 0 | |||||||||||||
Deferred compensation | 0 | (1,663) | 1,663 | ||||||||||||||
Ending balance at Mar. 31, 2018 | 840,155 | 1,992 | 178 | 16,461 | (161,486) | 2,129,100 | (1,157,331) | 11,241 | |||||||||
Increase (decrease) in shareholders' equity | |||||||||||||||||
Cumulative effect adjustments | [2] | (38,392) | (38,392) | ||||||||||||||
Beginning balance at Dec. 31, 2018 | 973,672 | 1,992 | 178 | 16,459 | (130,284) | 2,231,417 | (1,157,625) | 11,535 | |||||||||
Increase (decrease) in shareholders' equity | |||||||||||||||||
Net income | 75,311 | 75,311 | |||||||||||||||
OCI (loss) | 6,710 | 6,710 | |||||||||||||||
Dividends declared: | $ (41,570) | $ (343) | $ (41,570) | $ (343) | |||||||||||||
Net purchase of treasury stock | [1] | 24 | 24 | 0 | |||||||||||||
Deferred compensation | 0 | (1,154) | 1,154 | ||||||||||||||
Ending balance at Mar. 31, 2019 | $ 1,013,804 | $ 1,992 | $ 178 | $ 16,483 | $ (123,574) | $ 2,264,815 | $ (1,158,779) | $ 12,689 | |||||||||
|
STATEMENTS OF SHAREHOLDERS' EQUITY (UNAUDITED) (Parenthetical) - $ / shares |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|
Class A Common Stock | ||
Dividends declared (in dollars per share) | $ 0.90 | $ 0.84 |
Class B Common Stock | ||
Dividends declared (in dollars per share) | $ 135.00 | $ 126.00 |
Nature of Operations |
3 Months Ended |
---|---|
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations | Nature of Operations Erie Indemnity Company ("Indemnity", "we", "us", "our") is a publicly held Pennsylvania business corporation that has since its incorporation in 1925 served as the attorney-in-fact for the subscribers (policyholders) at the Erie Insurance Exchange ("Exchange"). The Exchange, which also commenced business in 1925, is a Pennsylvania-domiciled reciprocal insurer that writes property and casualty insurance. Our primary function as attorney-in-fact is to perform policy issuance and renewal services on behalf of the subscribers at the Exchange. We also act as attorney-in-fact on behalf of the Exchange with respect to all claims handling and investment management services, as well as the service provider for all claims handling, life insurance, and investment management services for its insurance subsidiaries, collectively referred to as "administrative services". Acting as attorney-in-fact in these two capacities is done in accordance with a subscriber's agreement (a limited power of attorney) executed individually by each subscriber (policyholder), which appoints us as their common attorney-in-fact to transact certain business on their behalf. Pursuant to the subscriber's agreement for acting as attorney-in-fact in these two capacities, we earn a management fee calculated as a percentage of the direct and affiliated assumed premiums written by the Exchange. The policy issuance and renewal services we provide to the Exchange are related to the sales, underwriting and issuance of policies. The sales related services we provide include agent compensation and certain sales and advertising support services. Agent compensation includes scheduled commissions to agents based upon premiums written as well as additional commissions and bonuses to agents, which are earned by achieving targeted measures. The underwriting services we provide include underwriting and policy processing. The remaining services we provide include customer service and administrative support. We also provide information technology services that support all the functions listed above. Included in these expenses are allocations of costs for departments that support these policy issuance and renewal functions. By virtue of its legal structure as a reciprocal insurer, the Exchange does not have any employees or officers. Therefore, it enters into contractual relationships by and through an attorney-in-fact. Indemnity serves as the attorney-in-fact on behalf of the Exchange with respect to its administrative services. The Exchange's insurance subsidiaries also utilize Indemnity for these services in accordance with the service agreements between each of the subsidiaries and Indemnity. Claims handling services include costs incurred in the claims process, including the adjustment, investigation, defense, recording and payment functions. Life insurance management services include costs incurred in the management and processing of life insurance business. Investment management services are related to investment trading activity, accounting and all other functions attributable to the investment of funds. Included in these expenses are allocations of costs for departments that support these administrative functions. The amounts incurred for these services are reimbursed to Indemnity at cost in accordance with the subscriber's agreement and the service agreements. State insurance regulations require that intercompany service agreements and any material amendments be approved in advance by the state insurance department. Our results of operations are tied to the growth and financial condition of the Exchange. If any events occurred that impaired the Exchange’s ability to grow or sustain its financial condition, including but not limited to reduced financial strength ratings, disruption in the independent agency relationships, significant catastrophe losses, or products not meeting customer demands, the Exchange could find it more difficult to retain its existing business and attract new business. A decline in the business of the Exchange almost certainly would have as a consequence a decline in the total premiums paid and a correspondingly adverse effect on the amount of the management fees we receive. We also have an exposure to a concentration of credit risk related to the unsecured receivables due from the Exchange for its management fee and cost reimbursements. See Note 13, "Concentrations of Credit Risk". |
Significant Accounting Policies |
3 Months Ended |
---|---|
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies Basis of presentation The accompanying unaudited financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three months ended March 31, 2019 are not necessarily indicative of the results that may be expected for the year ending December 31, 2019. For further information, refer to the financial statements and footnotes included in our Form 10-K for the year ended December 31, 2018 as filed with the Securities and Exchange Commission on February 21, 2019. Use of estimates The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Recently adopted accounting standards In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Codification ("ASC") 842, "Leases", which requires lessees to recognize assets and liabilities arising from operating leases on the Statements of Financial Position and to disclose certain information about leasing arrangements. We adopted ASC 842 on January 1, 2019 using the optional transition method, which permits entities to apply the new guidance prospectively with certain practical expedients available. We elected the package of practical expedients which among other things allowed us to carry forward the historical lease classifications. We did not elect the hindsight practical expedient in determining the lease term for existing leases. The adoption of the new standard resulted in the recognition of operating lease assets of $32.7 million and operating lease liabilities of $32.1 million on the Statement of Financial Position at January 1, 2019. The adoption of this standard did not have a material impact on our Statement of Operations and had no impact on our net cash flows. Recently issued accounting standards In August 2018, the FASB issued Accounting Standards Update ("ASU") 2018-15, "Intangibles-Goodwill and Other Internal-Use Software", which 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. ASU 2018-15 is effective for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years. The amendments under ASU 2018-15 may be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption and early adoption is permitted. We plan to adopt this guidance on a prospective basis and do not expect a material impact on our financial statements or disclosures. In June 2016, the FASB issued ASU 2016-13, "Financial Instruments-Credit Losses", which requires financial assets measured at amortized cost to be presented at the net amount expected to be collected through the use of a new forward-looking expected loss model and credit losses relating to available-for-sale debt securities to be recognized through an allowance for credit losses. ASU 2016-13 is effective for interim and annual reporting periods beginning after December 15, 2019. Early adoption for interim and annual periods beginning after December 15, 2018 is permitted. We have evaluated the impact of this guidance on our invested assets. Our investments are not measured at amortized cost, and therefore do not require the use of a new expected loss model. Our available-for-sale debt securities will continue to be monitored for credit losses which would be reflected as an allowance for credit losses rather than a reduction of the carrying value of the asset. Other financial assets subject to this guidance include our receivables from Erie Insurance Exchange and its subsidiaries and agent loans. Given the financial strength of the Exchange, demonstrated by its strong surplus position and industry ratings, it is unlikely these receivables would have significant, if any, credit loss exposure. Accordingly, we do not expect a material impact on our financial statements or related disclosures as a result of this guidance. Other assets Other assets include agent loans, operating lease assets and other long-term prepaid assets. Agent loans are carried at unpaid principal balance with interest recorded in investment income as earned. It is our policy to charge the loans that are in default directly to expense. We do not record an allowance for credit losses on these loans, as the majority of the loans are senior secured and historically have had insignificant default amounts. The determination of whether an arrangement is a lease, and the related lease classification, is made at inception of a contract. Our leases are classified as operating leases. Operating lease assets and liabilities are recorded at inception based on the present value of the future minimum lease payments over the lease term at commencement date. When an implicit rate for the lease is not available, we use our incremental borrowing rate based on the information available at commencement date to determine the present value of future payments. Lease terms include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Most of our lease contracts contain lease and non-lease components. Non-lease components are expensed as incurred. Operating lease assets are included in other assets, and the current and noncurrent portions of the operating lease liabilities are included in accounts payable and accrued expenses and other long-term liabilities, respectively, in the Statement of Financial Position. |
Revenue |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue | Revenue The majority of our revenue is derived from the subscriber’s agreement between us and the subscribers (policyholders) at the Exchange. Pursuant to the subscriber’s agreement, we earn a management fee calculated as a percentage, not to exceed 25%, of all direct and affiliated assumed written premiums of the Exchange. We allocate a portion of our management fee revenue, currently 25% of the direct and affiliated assumed written premiums of the Exchange, between the two performance obligations we have under the subscriber’s agreement. The first performance obligation is to provide policy issuance and renewal services to the subscribers (policyholders) at the Exchange, and the second is to act as attorney-in-fact on behalf of the Exchange, as well as the service provider for its insurance subsidiaries, with respect to all administrative services. The transaction price, including management fee revenue and administrative service reimbursement revenue, is allocated based on the estimated standalone selling prices developed using industry information and other available information for similar services. We update the transaction price allocation annually based upon the most recent information available. There was no material change to the allocation in 2019. The first performance obligation is to provide policy issuance and renewal services that result in executed insurance policies between the Exchange or one of its insurance subsidiaries and the subscriber (policyholder). Our customer, the subscriber (policyholder), receives economic benefits when substantially all the policy issuance or renewal services are complete and an insurance policy is issued or renewed by the Exchange or one of its insurance subsidiaries. It is at the time of policy issuance or renewal that the allocated portion of revenue is recognized. The Exchange, by virtue of its legal structure as a reciprocal insurer, does not have any employees or officers. Therefore, it enters into contractual relationships by and through an attorney-in-fact. Indemnity serves as the attorney-in-fact on behalf of the Exchange with respect to its administrative services in accordance with the subscriber's agreement. The Exchange's insurance subsidiaries also utilize Indemnity for these services in accordance with the service agreements between each of the subsidiaries and Indemnity. Collectively, these services represent a second performance obligation under the subscriber’s agreement and the service agreements. The revenue allocated to this performance obligation is recognized over time as these services are provided. The portion of revenue not yet earned is recorded as a contract liability in the Statements of Financial Position. The administrative services expenses we incur and the related reimbursements we receive are recorded gross in the Statements of Operations. Indemnity records a receivable from the Exchange for management fee revenue when the premium is written or assumed by the Exchange. Indemnity collects the management fee from the Exchange when the Exchange collects the premiums from the subscribers (policyholders). As the Exchange issues policies with annual terms only, cash collections generally occur within one year. A constraining estimate exists around the management fee received as consideration related to the potential for management fee to be returned if a policy were to be cancelled mid-term. Management fees are returned to the Exchange when policyholders cancel their insurance coverage mid-term and unearned premiums are refunded to them. We maintain an estimated allowance to reduce the management fee to its estimated net realizable value to account for the potential of mid-term policy cancellations based on historical cancellation rates. This estimated allowance has been allocated between the two performance obligations consistent with the revenue allocation proportions. The following table disaggregates revenue by our two performance obligations:
|
Earnings Per Share |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share | Earnings Per Share Class A and Class B basic earnings per share and Class B diluted earnings per share are calculated under the two-class method. The two-class method allocates earnings to each class of stock based upon its dividend rights. Class B shares are convertible into Class A shares at a conversion ratio of 2,400 to 1. See Note 11, "Capital Stock". Class A diluted earnings per share are calculated under the if-converted method, which reflects the conversion of Class B shares to Class A shares. Diluted earnings per share calculations include the dilutive effect of assumed issuance of stock-based awards under compensation plans that have the option to be paid in stock using the treasury stock method. A reconciliation of the numerators and denominators used in the basic and diluted per-share computations is presented as follows for each class of common stock:
|
Fair Value |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value | Fair Value Financial instruments carried at fair value Our available-for-sale debt securities and equity securities are recorded at fair value, which is the price that would be received to sell the asset in an orderly transaction between willing market participants as of the measurement date. Valuation techniques used to derive the fair value of our available-for-sale debt securities and equity securities are based upon observable and unobservable inputs. Observable inputs reflect market data obtained from independent sources. Unobservable inputs reflect our own assumptions regarding fair market value for these securities. Although virtually all of our prices are obtained from third party sources, we also perform an internal pricing review on outliers. The outlier review includes securities with price changes that vary from current market conditions or independent third party price sources. Financial instruments are categorized based upon the following characteristics or inputs to the valuation techniques:
Estimates of fair values for our investment portfolio are obtained primarily from a nationally recognized pricing service. Our Level 1 category includes those securities valued using an exchange traded price provided by the pricing service. The methodologies used by the pricing service that support a Level 2 classification of a financial instrument include multiple verifiable, observable inputs including benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, and reference data. Pricing service valuations for Level 3 securities are based upon proprietary models and are used when observable inputs are not available or in illiquid markets. In limited circumstances we adjust the price received from the pricing service when, in our judgment, a better reflection of fair value is available based upon corroborating information and our knowledge and monitoring of market conditions such as a disparity in price of comparable securities and/or non-binding broker quotes. In other circumstances, certain securities are internally priced because prices are not provided by the pricing service. We perform continuous reviews of the prices obtained from the pricing service. This includes evaluating the methodology and inputs used by the pricing service to ensure that we determine the proper classification level of the financial instrument. Price variances, including large periodic changes, are investigated and corroborated by market data. We have reviewed the pricing methodologies of our pricing service as well as other observable inputs, such as market data, and transaction volumes and believe that the prices adequately consider market activity in determining fair value. When a price from the pricing service is not available, values are determined by obtaining broker/dealer quotes and/or market comparables. When available, we obtain multiple quotes for the same security. The ultimate value for these securities is determined based upon our best estimate of fair value using corroborating market information. Our evaluation includes the consideration of benchmark yields, reported trades, issuer spreads, two-sided markets, benchmark securities, bids, offers, and reference data. The following tables present our fair value measurements on a recurring basis by asset class and level of input:
The following table presents our fair value measurements on a recurring basis by pricing source:
Quantitative and Qualitative Disclosures about Unobservable Inputs The following table presents quantitative information about the significant unobservable inputs utilized in the fair value measurements of Level 3 assets. Level 3 securities where cost is the best estimate of fair value totaled $1.1 million at March 31, 2019 and are excluded from the table below. When a non-binding broker quote was the only input available, the security was classified within Level 3. The quantitative detail of the unobservable inputs is neither provided nor reasonably available to us and therefore has not been included in the table below. These investments totaled $0.1 million at March 31, 2019 and $12.6 million at December 31, 2018. The weighted average is calculated based on estimated fair value.
We review the fair value hierarchy classifications each reporting period. Transfers between hierarchy levels may occur due to changes in available market observable inputs. Level 3 Assets – Year-to-Date Change:
Level 3 Assets – Year-to-Date Change:
The change in unrealized gains or losses included in other comprehensive income related to Level 3 securities held at the reporting date is as follows:
Financial instruments disclosed, but not carried at fair value The following table presents the carrying values and fair value measurements, which are categorized as Level 3 in the fair value hierarchy, of financial instruments disclosed, but not carried at fair value:
|
Investments |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments | Investments Available-for-sale securities The following tables summarize the cost and fair value of our available-for-sale securities. See also Note 5, "Fair Value" for additional fair value disclosures.
The amortized cost and estimated fair value of available-for-sale securities at March 31, 2019 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.
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.
The above securities have been evaluated and determined to be temporary impairments for which we expect to recover our entire principal plus interest. The primary components of this analysis include a general review of market conditions and financial performance of the issuer along with the extent and duration at which fair value is less than cost. Any securities that we intend to sell or will more likely than not be required to sell before recovery are included in other-than-temporary impairments, which are recognized in earnings. Net investment income Investment income, net of expenses, was generated from the following portfolios:
Realized investment gains (losses) Realized gains (losses) on investments were as follows:
The portion of net unrealized gains and losses recognized during the reporting period, related to equity securities still held at the reporting date, is calculated as follows:
Other-than-temporary impairments on available-for-sale securities recognized in earnings were $0.1 million for the three months ended March 31, 2019. There were no other-than-temporary impairments on available-for-sale securities recognized in earnings for the three months ended March 31, 2018. We have the intent to sell all credit-impaired available-for-sale debt securities; therefore, the entire amount of the impairment charges were included in earnings and no non-credit impairments were recognized in other comprehensive income. Limited partnerships The majority of our limited partnership holdings are considered investment companies where the general partners record assets at fair value. These limited partnerships are recorded using the equity method of accounting and are generally reported on a one-quarter lag; therefore, our year-to-date limited partnership results through March 31, 2019 are comprised of partnership financial results for the fourth quarter of 2018. Given the lag in reporting, our limited partnership results do not reflect the market conditions of the first quarter of 2019. Cash contributions made to and distributions received from the partnerships are recorded in the period in which the transaction occurs. At December 31, 2018 we also owned one real estate limited partnership that did not meet the criteria of an investment company. This partnership prepared audited financial statements on a cost basis. We elected to report this limited partnership under the fair value option, which was based on the NAV from our partner's capital statement reflecting the general partner's estimate of fair value for the fund's underlying assets. Fair value provides consistency in the evaluation and financial reporting for these limited partnerships and limited partnerships accounted for under the equity method. This real estate limited partnership was fully liquidated in January 2019. Equity in losses of limited partnerships by method of accounting were as follows:
The following table summarizes limited partnership investments by sector:
See also Note 14, "Commitments and Contingencies" for investment commitments related to limited partnerships. |
Leases |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||
Leases | Leases Lease assets and liabilities recorded on our Statement of Financial Position were as follows:
We currently have leases for real estate, technology equipment, copiers, and vehicles. Our largest operating lease asset at March 31, 2019 of $16.2 million is for office space leased from the Exchange, including the home office. Under this lease, rent is based on rental rates of like property and all operating expenses are the responsibility of the tenant (Indemnity). The lease agreement expires December 31, 2021. Operating lease costs for the three months ended March 31, 2019 were $3.6 million. Of this amount, the Exchange and its subsidiaries reimbursed us $1.5 million, which represents the allocated share of lease costs supporting administrative services activities. |
Borrowing Arrangements |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||
Borrowing Arrangements | Borrowing Arrangements Bank line of credit As of March 31, 2019, we have access to a $100 million bank revolving line of credit with a $25 million letter of credit sublimit that expires on October 30, 2023. As of March 31, 2019, a total of $99.1 million remains available under the facility due to $0.9 million outstanding letters of credit, which reduce the availability for letters of credit to $24.1 million. We had no borrowings outstanding on our line of credit as of March 31, 2019. Investments with a fair value of $109.4 million were pledged as collateral on the line at March 31, 2019. The investments pledged as collateral have no trading restrictions and are reported as cash and cash equivalents and available-for-sale securities in the Statements of Financial Position as of March 31, 2019. The banks require compliance with certain covenants, which include leverage ratios and debt restrictions, for our line of credit. We are in compliance with all covenants at March 31, 2019. Term loan credit facility In 2016, we entered into a credit agreement for a $100 million senior secured draw term loan credit facility ("Credit Facility") for the acquisition of real property and construction of an office building that will serve as part of our principal headquarters. On January 1, 2019, the Credit Facility converted to a fully-amortized term loan with monthly payments of principal and interest at a fixed rate of 4.35% over a period of 28 years. Investments with a fair value of $115.0 million were pledged as collateral for the facility and are reported as cash and cash equivalents and available-for-sale securities in the Statements of Financial Position as of March 31, 2019. The bank requires compliance with certain covenants, which include leverage ratios, debt restrictions and minimum net worth, for our Credit Facility. We are in compliance with all covenants at March 31, 2019. The remaining unpaid balance from the Credit Facility is reported at carrying value on our Statements of Financial Position, net of unamortized loan origination and commitment fees. See Note 5, "Fair Value" for the estimated fair value of these borrowings. Annual principal payments The following table sets forth future principal payments:
|
Postretirement Benefits |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Postretirement Benefits | Postretirement Benefits Pension plans Our pension plans consist of a noncontributory defined benefit pension plan covering substantially all employees and an unfunded supplemental employee retirement plan for certain members of executive and senior management. Although we are the sponsor of these postretirement plans and record the funded status of these plans, the Exchange and its subsidiaries reimburse us for approximately 59% of the annual benefit expense of these plans, which represents pension benefits for employees performing administrative services and their allocated share of costs for employees in departments that support the administrative functions. The cost of our pension plans are as follows:
|
Income Taxes |
3 Months Ended |
---|---|
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income tax expense is provided on an interim basis based upon our estimate of the annual effective income tax rate, adjusted each quarter for discrete items. For the three months ended March 31, 2019 and 2018, our effective tax rate is 21.2% and 21.0%, respectively. |
Capital Stock |
3 Months Ended |
---|---|
Mar. 31, 2019 | |
Class of Stock Disclosures [Abstract] | |
Capital Stock | Capital Stock Class A and B common stock Holders of Class B shares may, at their option, convert their shares into Class A shares at the rate of 2,400 Class A shares per Class B share. There were no shares of Class B common stock converted into Class A common stock during the three months ended March 31, 2019 and the year ended December 31, 2018. There is no provision for conversion of Class A shares to Class B shares, and Class B shares surrendered for conversion cannot be reissued. Stock repurchases In 2011, our Board of Directors approved a continuation of the current stock repurchase program of $150 million, with no time limitation. There were no shares repurchased under this program during the three months ended March 31, 2019 and the year ended December 31, 2018. We had approximately $17.8 million of repurchase authority remaining under this program at March 31, 2019. During the three months ended March 31, 2019, we purchased 9,725 shares of our outstanding Class A nonvoting common stock outside of our publicly announced share repurchase program at a total cost of $1.5 million. Of this amount, we purchased 3,246 shares for $0.4 million, or $132.35 per share, for stock-based awards in conjunction with our equity compensation plan, for which the shares were delivered to plan participants in January 2019. We purchased 2,304 shares for $0.4 million, or $183.62 per share, to fund the rabbi trust for the outside director deferred stock compensation plan. The shares were transferred to the rabbi trust in February 2019. The remaining 4,175 shares were purchased at a total cost of $0.7 million, or $175.23 per share, to fund the rabbi trust for the incentive compensation deferral plan. The shares were transferred to the rabbi trust in February and March 2019. During the year ended December 31, 2018, we purchased 27,120 shares of our outstanding Class A nonvoting common stock outside of our publicly announced share repurchase program at a total cost of $3.2 million. Of this amount, we purchased 5,830 shares for $0.7 million, or $117.39 per share, for stock-based awards in conjunction with our equity compensation plan. We purchased 9,285 shares for $1.1 million, or $122.19 per share, to fund the rabbi trust for the outside director deferred stock compensation plan. The remaining 12,005 shares were purchased at a total cost of $1.4 million, or $119.28 per share, to fund the rabbi trust for the incentive compensation deferral plan. These shares were delivered in 2018. |
Accumulated Other Comprehensive Income (Loss) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) Changes in accumulated other comprehensive income ("AOCI") (loss) by component, including amounts reclassified to other comprehensive income ("OCI") (loss) and the related line item in the Statements of Operations where net income is presented, are as follows:
|
Concentrations of Credit Risk |
3 Months Ended |
---|---|
Mar. 31, 2019 | |
Risks and Uncertainties [Abstract] | |
Concentrations of Credit Risk | Concentrations of Credit Risk Financial instruments could potentially expose us to concentrations of credit risk, including unsecured receivables from the Exchange. A large majority of our revenue and receivables are from the Exchange and its subsidiaries. See also Note 1, "Nature of Operations". Management fee amounts and other reimbursements due from the Exchange and its subsidiaries were $456.1 million and $449.9 million at March 31, 2019 and December 31, 2018, respectively. |
Commitments and Contingencies |
3 Months Ended |
---|---|
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies We have contractual commitments to invest up to $9.8 million related to our limited partnership investments at March 31, 2019. These commitments are split among private equity securities of $4.4 million and mezzanine debt securities of $5.4 million. These commitments will be funded as required by the limited partnership agreements. We are involved in litigation arising in the ordinary course of conducting business. In accordance with current accounting standards for loss contingencies and based upon information currently known to us, we establish reserves for litigation when it is probable that a loss associated with a claim or proceeding has been incurred and the amount of the loss or range of loss can be reasonably estimated. When no amount within the range of loss is a better estimate than any other amount, we accrue the minimum amount of the estimable loss. To the extent that such litigation against us may have an exposure to a loss in excess of the amount we have accrued, we believe that such excess would not be material to our financial condition, results of operations, or cash flows. Legal fees are expensed as incurred. We believe that our accruals for legal proceedings are appropriate and, individually and in the aggregate, are not expected to be material to our financial condition, results of operations, or cash flows. We review all litigation on an ongoing basis when making accrual and disclosure decisions. For certain legal proceedings, we cannot reasonably estimate losses or a range of loss, if any, particularly for proceedings that are in their early stages of development or where the plaintiffs seek indeterminate damages. Various factors, including, but not limited to, the outcome of potentially lengthy discovery and the resolution of important factual questions, may need to be determined before probability can be established or before a loss or range of loss can be reasonably estimated. If the loss contingency in question is not both probable and reasonably estimable, we do not establish an accrual and the matter will continue to be monitored for any developments that would make the loss contingency both probable and reasonably estimable. In the event that a legal proceeding results in a substantial judgment against, or settlement by, us, there can be no assurance that any resulting liability or financial commitment would not have a material adverse effect on the financial condition, results of operations, or cash flows. |
Subsequent Events |
3 Months Ended |
---|---|
Mar. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events No items were identified in this period subsequent to the financial statement date that required adjustment or additional disclosure. |
Significant Accounting Policies (Policies) |
3 Months Ended | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2019 | |||||||||||||
Accounting Policies [Abstract] | |||||||||||||
Basis of presentation | Basis of presentation The accompanying unaudited financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three months ended March 31, 2019 are not necessarily indicative of the results that may be expected for the year ending December 31, 2019. For further information, refer to the financial statements and footnotes included in our Form 10-K for the year ended December 31, 2018 as filed with the Securities and Exchange Commission on February 21, 2019. |
||||||||||||
Use of estimates | Use of estimates The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
||||||||||||
Recently adopted and issued accounting standards | Recently adopted accounting standards In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Codification ("ASC") 842, "Leases", which requires lessees to recognize assets and liabilities arising from operating leases on the Statements of Financial Position and to disclose certain information about leasing arrangements. We adopted ASC 842 on January 1, 2019 using the optional transition method, which permits entities to apply the new guidance prospectively with certain practical expedients available. We elected the package of practical expedients which among other things allowed us to carry forward the historical lease classifications. We did not elect the hindsight practical expedient in determining the lease term for existing leases. The adoption of the new standard resulted in the recognition of operating lease assets of $32.7 million and operating lease liabilities of $32.1 million on the Statement of Financial Position at January 1, 2019. The adoption of this standard did not have a material impact on our Statement of Operations and had no impact on our net cash flows. Recently issued accounting standards In August 2018, the FASB issued Accounting Standards Update ("ASU") 2018-15, "Intangibles-Goodwill and Other Internal-Use Software", which 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. ASU 2018-15 is effective for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years. The amendments under ASU 2018-15 may be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption and early adoption is permitted. We plan to adopt this guidance on a prospective basis and do not expect a material impact on our financial statements or disclosures. In June 2016, the FASB issued ASU 2016-13, "Financial Instruments-Credit Losses", which requires financial assets measured at amortized cost to be presented at the net amount expected to be collected through the use of a new forward-looking expected loss model and credit losses relating to available-for-sale debt securities to be recognized through an allowance for credit losses. ASU 2016-13 is effective for interim and annual reporting periods beginning after December 15, 2019. Early adoption for interim and annual periods beginning after December 15, 2018 is permitted. We have evaluated the impact of this guidance on our invested assets. Our investments are not measured at amortized cost, and therefore do not require the use of a new expected loss model. Our available-for-sale debt securities will continue to be monitored for credit losses which would be reflected as an allowance for credit losses rather than a reduction of the carrying value of the asset. Other financial assets subject to this guidance include our receivables from Erie Insurance Exchange and its subsidiaries and agent loans. Given the financial strength of the Exchange, demonstrated by its strong surplus position and industry ratings, it is unlikely these receivables would have significant, if any, credit loss exposure. Accordingly, we do not expect a material impact on our financial statements or related disclosures as a result of this guidance. |
||||||||||||
Other assets | Other assets Other assets include agent loans, operating lease assets and other long-term prepaid assets. Agent loans are carried at unpaid principal balance with interest recorded in investment income as earned. It is our policy to charge the loans that are in default directly to expense. We do not record an allowance for credit losses on these loans, as the majority of the loans are senior secured and historically have had insignificant default amounts. The determination of whether an arrangement is a lease, and the related lease classification, is made at inception of a contract. Our leases are classified as operating leases. Operating lease assets and liabilities are recorded at inception based on the present value of the future minimum lease payments over the lease term at commencement date. When an implicit rate for the lease is not available, we use our incremental borrowing rate based on the information available at commencement date to determine the present value of future payments. Lease terms include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Most of our lease contracts contain lease and non-lease components. Non-lease components are expensed as incurred. Operating lease assets are included in other assets, and the current and noncurrent portions of the operating lease liabilities are included in accounts payable and accrued expenses and other long-term liabilities, respectively, in the Statement of Financial Position. |
||||||||||||
Earnings per share | Class A and Class B basic earnings per share and Class B diluted earnings per share are calculated under the two-class method. The two-class method allocates earnings to each class of stock based upon its dividend rights. Class B shares are convertible into Class A shares at a conversion ratio of 2,400 to 1. See Note 11, "Capital Stock". Class A diluted earnings per share are calculated under the if-converted method, which reflects the conversion of Class B shares to Class A shares. Diluted earnings per share calculations include the dilutive effect of assumed issuance of stock-based awards under compensation plans that have the option to be paid in stock using the treasury stock method. |
||||||||||||
Fair value of financial instruments | Financial instruments carried at fair value Our available-for-sale debt securities and equity securities are recorded at fair value, which is the price that would be received to sell the asset in an orderly transaction between willing market participants as of the measurement date. Valuation techniques used to derive the fair value of our available-for-sale debt securities and equity securities are based upon observable and unobservable inputs. Observable inputs reflect market data obtained from independent sources. Unobservable inputs reflect our own assumptions regarding fair market value for these securities. Although virtually all of our prices are obtained from third party sources, we also perform an internal pricing review on outliers. The outlier review includes securities with price changes that vary from current market conditions or independent third party price sources. Financial instruments are categorized based upon the following characteristics or inputs to the valuation techniques:
Estimates of fair values for our investment portfolio are obtained primarily from a nationally recognized pricing service. Our Level 1 category includes those securities valued using an exchange traded price provided by the pricing service. The methodologies used by the pricing service that support a Level 2 classification of a financial instrument include multiple verifiable, observable inputs including benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, and reference data. Pricing service valuations for Level 3 securities are based upon proprietary models and are used when observable inputs are not available or in illiquid markets. In limited circumstances we adjust the price received from the pricing service when, in our judgment, a better reflection of fair value is available based upon corroborating information and our knowledge and monitoring of market conditions such as a disparity in price of comparable securities and/or non-binding broker quotes. In other circumstances, certain securities are internally priced because prices are not provided by the pricing service. We perform continuous reviews of the prices obtained from the pricing service. This includes evaluating the methodology and inputs used by the pricing service to ensure that we determine the proper classification level of the financial instrument. Price variances, including large periodic changes, are investigated and corroborated by market data. We have reviewed the pricing methodologies of our pricing service as well as other observable inputs, such as market data, and transaction volumes and believe that the prices adequately consider market activity in determining fair value. When a price from the pricing service is not available, values are determined by obtaining broker/dealer quotes and/or market comparables. When available, we obtain multiple quotes for the same security. The ultimate value for these securities is determined based upon our best estimate of fair value using corroborating market information. Our evaluation includes the consideration of benchmark yields, reported trades, issuer spreads, two-sided markets, benchmark securities, bids, offers, and reference data. |
||||||||||||
Fair value hierarchy classification | We review the fair value hierarchy classifications each reporting period. Transfers between hierarchy levels may occur due to changes in available market observable inputs. |
||||||||||||
Limited partnerships | Limited partnerships The majority of our limited partnership holdings are considered investment companies where the general partners record assets at fair value. These limited partnerships are recorded using the equity method of accounting and are generally reported on a one-quarter lag; therefore, our year-to-date limited partnership results through March 31, 2019 are comprised of partnership financial results for the fourth quarter of 2018. Given the lag in reporting, our limited partnership results do not reflect the market conditions of the first quarter of 2019. Cash contributions made to and distributions received from the partnerships are recorded in the period in which the transaction occurs. At December 31, 2018 we also owned one real estate limited partnership that did not meet the criteria of an investment company. This partnership prepared audited financial statements on a cost basis. We elected to report this limited partnership under the fair value option, which was based on the NAV from our partner's capital statement reflecting the general partner's estimate of fair value for the fund's underlying assets. Fair value provides consistency in the evaluation and financial reporting for these limited partnerships and limited partnerships accounted for under the equity method. This real estate limited partnership was fully liquidated in January 2019. |
||||||||||||
Commitments and contingencies | We are involved in litigation arising in the ordinary course of conducting business. In accordance with current accounting standards for loss contingencies and based upon information currently known to us, we establish reserves for litigation when it is probable that a loss associated with a claim or proceeding has been incurred and the amount of the loss or range of loss can be reasonably estimated. When no amount within the range of loss is a better estimate than any other amount, we accrue the minimum amount of the estimable loss. To the extent that such litigation against us may have an exposure to a loss in excess of the amount we have accrued, we believe that such excess would not be material to our financial condition, results of operations, or cash flows. Legal fees are expensed as incurred. We believe that our accruals for legal proceedings are appropriate and, individually and in the aggregate, are not expected to be material to our financial condition, results of operations, or cash flows. We review all litigation on an ongoing basis when making accrual and disclosure decisions. For certain legal proceedings, we cannot reasonably estimate losses or a range of loss, if any, particularly for proceedings that are in their early stages of development or where the plaintiffs seek indeterminate damages. Various factors, including, but not limited to, the outcome of potentially lengthy discovery and the resolution of important factual questions, may need to be determined before probability can be established or before a loss or range of loss can be reasonably estimated. If the loss contingency in question is not both probable and reasonably estimable, we do not establish an accrual and the matter will continue to be monitored for any developments that would make the loss contingency both probable and reasonably estimable. In the event that a legal proceeding results in a substantial judgment against, or settlement by, us, there can be no assurance that any resulting liability or financial commitment would not have a material adverse effect on the financial condition, results of operations, or cash flows. |
Revenue (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Disaggregation of Revenue by Performance Obligation | The following table disaggregates revenue by our two performance obligations:
|
Earnings Per Share (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Reconciliation of the Numerators and Denominators Used in the Basic and Diluted Per-Share Computations | A reconciliation of the numerators and denominators used in the basic and diluted per-share computations is presented as follows for each class of common stock:
|
Fair Value (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Fair Value Measurements on a Recurring Basis by Asset Class and Level of Input | The following tables present our fair value measurements on a recurring basis by asset class and level of input:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Fair Value Measurements on a Recurring Basis by Pricing Source and Quantitative and Qualitative Disclosures about Unobservable Inputs | Quantitative and Qualitative Disclosures about Unobservable Inputs The following table presents quantitative information about the significant unobservable inputs utilized in the fair value measurements of Level 3 assets. Level 3 securities where cost is the best estimate of fair value totaled $1.1 million at March 31, 2019 and are excluded from the table below. When a non-binding broker quote was the only input available, the security was classified within Level 3. The quantitative detail of the unobservable inputs is neither provided nor reasonably available to us and therefore has not been included in the table below. These investments totaled $0.1 million at March 31, 2019 and $12.6 million at December 31, 2018. The weighted average is calculated based on estimated fair value.
The following table presents our fair value measurements on a recurring basis by pricing source:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Roll Forward of Level 3 Fair Value Measurements on a Recurring Basis | Level 3 Assets – Year-to-Date Change:
Level 3 Assets – Year-to-Date Change:
The change in unrealized gains or losses included in other comprehensive income related to Level 3 securities held at the reporting date is as follows:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Financial Instruments Disclosed But Not Carried at Fair Value | The following table presents the carrying values and fair value measurements, which are categorized as Level 3 in the fair value hierarchy, of financial instruments disclosed, but not carried at fair value:
|
Investments (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Reconciliation of Cost to Fair Value of Available-For-Sale Securities | The following tables summarize the cost and fair value of our available-for-sale securities. See also Note 5, "Fair Value" for additional fair value disclosures.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Amortized Cost and Estimated Fair Value of Available-For-Sale Securities by Remaining Contractual Term to Maturity | The amortized cost and estimated fair value of available-for-sale securities at March 31, 2019 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.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Investment Income, Net of Expenses, from Portfolios | Investment income, net of expenses, was generated from the following portfolios:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Realized Gains and Losses on Investments and Net Unrealized Gains and Losses Recognized during the Reporting Period Related to Equity Securities Held at the Reporting Date | Realized gains (losses) on investments were as follows:
The portion of net unrealized gains and losses recognized during the reporting period, related to equity securities still held at the reporting date, is calculated as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Limited Partnership Results, Generally Reported on a One Quarter Lag | Equity in losses of limited partnerships by method of accounting were as follows:
The following table summarizes limited partnership investments by sector:
|
Leases (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||
Schedule of Lease Assets and Liabilities Recorded in Statement of Financial Position | Lease assets and liabilities recorded on our Statement of Financial Position were as follows:
|
Borrowing Arrangements (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||
Schedule of Future Principal Payments | The following table sets forth future principal payments:
|
Postretirement Benefits (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Cost of Pension Plans | The cost of our pension plans are as follows:
|
Accumulated Other Comprehensive Income (Loss) (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Changes in Accumulated Other Comprehensive Income (Loss) by Component, Including Amounts Reclassified to Other Comprehensive Income (Loss) and the Related Line Item in the Statements of Operations Where Net Income is Presented | Changes in accumulated other comprehensive income ("AOCI") (loss) by component, including amounts reclassified to other comprehensive income ("OCI") (loss) and the related line item in the Statements of Operations where net income is presented, are as follows:
|
Nature of Operations (Details) |
3 Months Ended |
---|---|
Mar. 31, 2019
Obligations
| |
Revenue, Performance Obligation [Abstract] | |
Performance obligations under subscriber's agreement | 2 |
Significant Accounting Policies (Details) - USD ($) $ in Thousands |
Mar. 31, 2019 |
Jan. 01, 2019 |
---|---|---|
Leases [Abstract] | ||
Operating lease assets | $ 28,611 | $ 32,700 |
Operating lease liabilities | $ 29,055 | $ 32,100 |
Revenue - Narrative (Details) |
3 Months Ended |
---|---|
Mar. 31, 2019
Obligations
| |
Revenue from Contract with Customer [Abstract] | |
Indemnity's management fee rate as a percent of direct and affiliated assumed written premiums of the Exchange (as a percent) | 25.00% |
Performance obligations under subscriber's agreement | 2 |
Fair Value - Financial Instruments Disclosed but Not Carried at Fair Value (Details) - USD ($) $ in Thousands |
Mar. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
Carrying value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Agent loans | $ 61,926 | $ 58,006 |
Long-term borrowings | 99,273 | 99,730 |
Fair value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Agent loans | 61,487 | 54,110 |
Long-term borrowings | $ 95,958 | $ 94,057 |
Investments - Cost to Fair Value of Available-For-Sale Securities (Details) - USD ($) $ in Thousands |
Mar. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
Available-for-sale securities | ||
Amortized cost | $ 676,847 | |
Estimated fair value | 674,919 | |
U.S. Treasury | ||
Available-for-sale securities | ||
Amortized cost | 279,553 | $ 208,610 |
Gross unrealized gains | 503 | 18 |
Gross unrealized losses | 100 | 216 |
Estimated fair value | 279,956 | 208,412 |
States & political subdivisions | ||
Available-for-sale securities | ||
Amortized cost | 26,931 | 157,003 |
Gross unrealized gains | 521 | 2,020 |
Gross unrealized losses | 0 | 0 |
Estimated fair value | 27,452 | 159,023 |
Corporate debt securities | ||
Available-for-sale securities | ||
Amortized cost | 235,546 | 259,362 |
Gross unrealized gains | 985 | 139 |
Gross unrealized losses | 3,514 | 9,554 |
Estimated fair value | 233,017 | 249,947 |
Residential mortgage-backed securities | ||
Available-for-sale securities | ||
Amortized cost | 6,513 | 4,603 |
Gross unrealized gains | 67 | 38 |
Gross unrealized losses | 9 | 32 |
Estimated fair value | 6,571 | 4,609 |
Commercial mortgage-backed securities | ||
Available-for-sale securities | ||
Amortized cost | 48,120 | 47,022 |
Gross unrealized gains | 273 | 80 |
Gross unrealized losses | 249 | 587 |
Estimated fair value | 48,144 | 46,515 |
Collateralized debt obligations | ||
Available-for-sale securities | ||
Amortized cost | 64,432 | 65,039 |
Gross unrealized gains | 17 | 30 |
Gross unrealized losses | 517 | 830 |
Estimated fair value | 63,932 | 64,239 |
Other debt securities | ||
Available-for-sale securities | ||
Amortized cost | 15,752 | 15,756 |
Gross unrealized gains | 95 | 33 |
Gross unrealized losses | 0 | 11 |
Estimated fair value | 15,847 | 15,778 |
Available-for-sale securities | ||
Available-for-sale securities | ||
Amortized cost | 676,847 | 757,395 |
Gross unrealized gains | 2,461 | 2,358 |
Gross unrealized losses | 4,389 | 11,230 |
Estimated fair value | $ 674,919 | $ 748,523 |
Investments - Amortized Cost and Estimated Fair Value of Available-For-Sale Securities by Contractual Maturity (Details) $ in Thousands |
Mar. 31, 2019
USD ($)
|
---|---|
Amortized cost | |
Due in one year or less | $ 123,334 |
Due after one year through five years | 320,044 |
Due after five years through ten years | 133,675 |
Due after ten years | 99,794 |
Amortized cost | 676,847 |
Estimated fair value | |
Due in one year or less | 123,200 |
Due after one year through five years | 319,564 |
Due after five years through ten years | 132,586 |
Due after ten years | 99,569 |
Estimated fair value | $ 674,919 |
Investments - Available-For-Sale Securities in a Gross Unrealized Loss Position (Details) $ in Thousands |
Mar. 31, 2019
USD ($)
Holdings
|
Dec. 31, 2018
USD ($)
Holdings
|
---|---|---|
Investment grade | ||
Fair value | ||
Less than 12 months | $ 77,871 | $ 242,821 |
12 months or longer | 94,217 | 98,118 |
Total | 172,088 | 340,939 |
Unrealized losses | ||
Less than 12 months | 534 | 1,295 |
12 months or longer | 807 | 1,641 |
Total | $ 1,341 | $ 2,936 |
No. of holdings | Holdings | 124 | 147 |
Non-investment grade | ||
Fair value | ||
Less than 12 months | $ 75,201 | $ 125,813 |
12 months or longer | 34,566 | 19,987 |
Total | 109,767 | 145,800 |
Unrealized losses | ||
Less than 12 months | 1,602 | 6,608 |
12 months or longer | 1,446 | 1,686 |
Total | $ 3,048 | $ 8,294 |
No. of holdings | Holdings | 426 | 574 |
U.S. Treasury | ||
Fair value | ||
Less than 12 months | $ 0 | $ 129,474 |
12 months or longer | 11,748 | 11,656 |
Total | 11,748 | 141,130 |
Unrealized losses | ||
Less than 12 months | 0 | 19 |
12 months or longer | 100 | 197 |
Total | $ 100 | $ 216 |
No. of holdings | Holdings | 4 | 7 |
Corporate debt securities | ||
Fair value | ||
Less than 12 months | $ 82,879 | $ 157,300 |
12 months or longer | 94,393 | 86,586 |
Total | 177,272 | 243,886 |
Unrealized losses | ||
Less than 12 months | 1,647 | 6,866 |
12 months or longer | 1,867 | 2,688 |
Total | $ 3,514 | $ 9,554 |
No. of holdings | Holdings | 471 | 635 |
Residential mortgage-backed securities | ||
Fair value | ||
Less than 12 months | $ 1,208 | $ 777 |
12 months or longer | 388 | 1,618 |
Total | 1,596 | 2,395 |
Unrealized losses | ||
Less than 12 months | 4 | 6 |
12 months or longer | 5 | 26 |
Total | $ 9 | $ 32 |
No. of holdings | Holdings | 2 | 3 |
Commercial mortgage-backed securities | ||
Fair value | ||
Less than 12 months | $ 9,491 | $ 17,624 |
12 months or longer | 19,023 | 16,997 |
Total | 28,514 | 34,621 |
Unrealized losses | ||
Less than 12 months | 17 | 175 |
12 months or longer | 232 | 412 |
Total | $ 249 | $ 587 |
No. of holdings | Holdings | 27 | 30 |
Collateralized debt obligations | ||
Fair value | ||
Less than 12 months | $ 59,394 | $ 55,246 |
12 months or longer | 3,231 | 1,248 |
Total | 62,625 | 56,494 |
Unrealized losses | ||
Less than 12 months | 468 | 826 |
12 months or longer | 49 | 4 |
Total | $ 517 | $ 830 |
No. of holdings | Holdings | 45 | 39 |
Other debt securities | ||
Fair value | ||
Less than 12 months | $ 100 | $ 8,213 |
12 months or longer | 0 | 0 |
Total | 100 | 8,213 |
Unrealized losses | ||
Less than 12 months | 0 | 11 |
12 months or longer | 0 | 0 |
Total | $ 0 | $ 11 |
No. of holdings | Holdings | 1 | 7 |
Available-for-sale securities | ||
Fair value | ||
Less than 12 months | $ 153,072 | $ 368,634 |
12 months or longer | 128,783 | 118,105 |
Total | 281,855 | 486,739 |
Unrealized losses | ||
Less than 12 months | 2,136 | 7,903 |
12 months or longer | 2,253 | 3,327 |
Total | $ 4,389 | $ 11,230 |
No. of holdings | Holdings | 550 | 721 |
Investments - Net Investment Income (Details) - USD ($) $ in Thousands |
3 Months Ended | |||
---|---|---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|||
Investment income from portfolios | ||||
Total investment income | $ 8,767 | $ 7,260 | ||
Less: investment expenses | 250 | 440 | ||
Investment income, net of expenses | 8,517 | 6,820 | ||
Fixed maturities | ||||
Investment income from portfolios | ||||
Total investment income | [1] | 6,161 | 6,110 | |
Equity securities | ||||
Investment income from portfolios | ||||
Total investment income | 141 | 142 | ||
Cash equivalents and other | ||||
Investment income from portfolios | ||||
Total investment income | $ 2,465 | 1,008 | ||
Erie Family Life Insurance Company | ||||
Investment income from portfolios | ||||
Note receivable from EFL, interest income recognized by Indemnity | $ 400 | |||
|
Investments - Realized Investment Gains (Losses) and Impairments (Details) - USD ($) |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|
Net realized investment gains (losses) | ||
Net realized investment gains (losses) | $ 2,503,000 | $ (465,000) |
Other-than-temporary impairments on available-for-sale securities | ||
Other-than-temporary impairments on available-for-sale securities recognized in earnings | 78,000 | 0 |
Other-than-temporary impairments on available-for-sale securities recognized in other comprehensive income | 0 | 0 |
Available-for-sale securities | ||
Available-for-sale securities: | ||
Gross realized gains | 2,258,000 | 340,000 |
Gross realized losses | (340,000) | (685,000) |
Net realized gains (losses) on available-for-sale securities | 1,918,000 | (345,000) |
Equity securities | ||
Equity securities | ||
Equity securities | $ 585,000 | $ (120,000) |
Investments - Portion of Net Unrealized Gains and Losses Recognized During the Reporting Period Related To Equity Securities (Details) - Equity securities - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|
Equity securities: | ||
Net gains (losses) recognized during the period | $ 585 | $ (120) |
Less: net losses recognized on securities sold | 0 | (34) |
Net unrealized gains (losses) recognized on securities held at reporting date | $ 585 | $ (86) |
Investments - Equity in Losses of Limited Partnerships by Method of Accounting (Details) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2019
USD ($)
|
Mar. 31, 2018
USD ($)
|
Dec. 31, 2018
fund
|
|
Investments in limited partnerships | |||
Equity in (losses) earnings of limited partnerships | $ (1,147) | $ (192) | |
Equity method of accounting | |||
Investments in limited partnerships | |||
Equity in (losses) earnings of limited partnerships | (1,147) | 195 | |
Fair value option | |||
Investments in limited partnerships | |||
Number of real estate limited partnerships that do not meet the criteria of an investment company | fund | 1 | ||
Equity in (losses) earnings of limited partnerships | $ 0 | $ (387) |
Investments - Limited Partnership Investments by Sector (Details) - USD ($) $ in Thousands |
Mar. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
Investments in limited partnerships | ||
Asset recorded | $ 30,038 | $ 34,821 |
Private equity | ||
Investments in limited partnerships | ||
Asset recorded | 26,691 | 28,271 |
Mezzanine debt | ||
Investments in limited partnerships | ||
Asset recorded | 1,118 | 1,152 |
Real estate | ||
Investments in limited partnerships | ||
Asset recorded | 2,229 | 2,192 |
Fair value option | Real estate | ||
Investments in limited partnerships | ||
Asset recorded | $ 0 | $ 3,206 |
Leases (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Jan. 01, 2019 |
|
Lessee, Lease, Description [Line Items] | ||
Operating lease assets | $ 28,611 | $ 32,700 |
Operating lease liabilities - current | 12,466 | |
Operating lease liabilities - long-term | 16,589 | |
Total operating lease liabilities | 29,055 | $ 32,100 |
Operating lease costs | 3,600 | |
Erie Insurance Exchange | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease costs, amount reimbursed from Exchange and its subsidiaries | 1,500 | |
Erie Insurance Exchange | Office Space | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease assets | $ 16,200 |
Borrowing Arrangements - Bank Line of Credit (Details) - Revolving line of credit |
Mar. 31, 2019
USD ($)
|
---|---|
Bank Line of Credit | |
Maximum borrowing capacity under the bank revolving line of credit | $ 100,000,000 |
Maximum letter of credit sublimit under the bank revolving line of credit | 25,000,000 |
Available borrowing capacity under the bank revolving line of credit, due to outstanding letters of credit | 99,100,000 |
Outstanding amount of letters of credit under the bank revolving line of credit | 900,000 |
Available amount of letters of credit under the bank revolving line of credit | 24,100,000 |
Borrowings outstanding under the bank revolving line of credit | 0 |
Fair value of investments pledged as collateral on the bank revolving line of credit | $ 109,400,000 |
Borrowing Arrangements - Term Loan Credit Facility (Details) - Secured debt - USD ($) |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Dec. 31, 2016 |
|
Term loan credit facility | ||
Amount of senior secured draw term loan credit facility | $ 100,000,000.0 | |
Fixed interest rate of credit facility (as a percent) | 4.35% | |
Repayment period of credit facility (in years) | 28 years | |
Fair value of investments pledged as collateral on the credit facility | $ 115,000,000 |
Borrowing Arrangements - Annual Principal Payments (Details) - Secured debt $ in Thousands |
Mar. 31, 2019
USD ($)
|
---|---|
Future principal payments: | |
2019 | $ 1,410 |
2020 | 1,953 |
2021 | 2,040 |
2022 | 2,130 |
2023 | 2,225 |
Thereafter | $ 89,782 |
Postretirement Benefits (Details) - USD ($) $ in Thousands |
3 Months Ended | |||
---|---|---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|||
Cost of pension plans: | ||||
Service cost for benefits earned | $ 8,463 | $ 9,513 | ||
Interest cost on benefits obligation | 9,827 | 8,846 | ||
Expected return on plan assets | (11,871) | (12,815) | ||
Prior service cost amortization | 349 | 338 | ||
Net actuarial loss amortization | 1,278 | 3,202 | ||
Pension plan cost | [1] | $ 8,046 | $ 9,084 | |
Erie Insurance Exchange | ||||
Postretirement Benefits | ||||
Postretirement annual benefit expense reimbursed to Indemnity from the Exchange and its subsidiaries (as a percent) | 59.00% | |||
|
Income Taxes (Details) |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|
Income Tax Disclosure [Abstract] | ||
Effective income tax rate, percentage | 21.20% | 21.00% |
Capital Stock - Class A and B Common Stock (Details) - Class B Common Stock - shares |
3 Months Ended | 12 Months Ended |
---|---|---|
Mar. 31, 2019 |
Dec. 31, 2018 |
|
Common Stock | ||
Ratio for converting shares of Class B common stock into shares of Class A common stock (as a percent) | 2400.00% | 2400.00% |
Class B common stock shares converted into Class A common stock shares (in shares) | 0 | 0 |
Capital Stock - Stock Repurchases (Details) - Class A Common Stock - USD ($) |
3 Months Ended | 12 Months Ended | |
---|---|---|---|
Mar. 31, 2019 |
Dec. 31, 2018 |
Dec. 31, 2011 |
|
Shares purchased outside of stock repurchase program | |||
Total cost of shares purchased outside of publicly announced stock repurchase program | $ 1,500,000 | $ 3,200,000 | |
Performance shares | |||
Shares purchased outside of stock repurchase program | |||
Shares purchased outside of publicly announced stock repurchase program for share-based compensation awards (in shares) | 9,725 | 27,120 | |
Equity compensation plan | |||
Shares purchased outside of stock repurchase program | |||
Total cost of shares purchased outside of publicly announced stock repurchase program | $ 400,000 | $ 700,000 | |
Average price per share for shares purchased (in dollars per share) | $ 132.35 | $ 117.39 | |
Equity compensation plan | Performance shares | |||
Shares purchased outside of stock repurchase program | |||
Shares purchased outside of publicly announced stock repurchase program for share-based compensation awards (in shares) | 3,246 | 5,830 | |
Stock compensation plan for outside directors | |||
Shares purchased outside of stock repurchase program | |||
Total cost of shares purchased outside of publicly announced stock repurchase program | $ 400,000 | $ 1,100,000 | |
Average price per share for shares purchased (in dollars per share) | $ 183.62 | $ 122.19 | |
Stock compensation plan for outside directors | Performance shares | |||
Shares purchased outside of stock repurchase program | |||
Shares purchased outside of publicly announced stock repurchase program for share-based compensation awards (in shares) | 2,304 | 9,285 | |
Incentive compensation deferral plan | |||
Shares purchased outside of stock repurchase program | |||
Total cost of shares purchased outside of publicly announced stock repurchase program | $ 700,000 | $ 1,400,000 | |
Average price per share for shares purchased (in dollars per share) | $ 175.23 | $ 119.28 | |
Incentive compensation deferral plan | Performance shares | |||
Shares purchased outside of stock repurchase program | |||
Shares purchased outside of publicly announced stock repurchase program for share-based compensation awards (in shares) | 4,175 | 12,005 | |
Stock repurchase program | |||
Stock repurchases | |||
Amount of authorized stock repurchases approved for continuation under the current program | $ 150,000,000 | ||
Shares repurchased under stock repurchase program (in shares) | 0 | 0 | |
Approximate amount of repurchase authority remaining under the current stock repurchase program | $ 17,800,000 |
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands |
3 Months Ended | ||||||
---|---|---|---|---|---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
||||||
Accumulated other comprehensive income (loss), net of tax | |||||||
AOCI (loss), beginning of period | $ (130,284) | ||||||
Investment securities, OCI (loss) | 5,478 | $ (5,427) | |||||
Pension and other postretirement plans, OCI (loss) | 1,232 | 0 | |||||
OCI (loss) | 6,710 | (5,427) | |||||
AOCI (loss), end of period | (123,574) | ||||||
Investment securities: | |||||||
Accumulated other comprehensive income (loss), before tax | |||||||
AOCI (loss), beginning of period | (9,169) | 3,410 | |||||
OCI (loss) before reclassifications | 8,774 | (7,130) | |||||
Realized investment (gains) losses | (1,918) | 345 | |||||
Impairment losses | 78 | 0 | |||||
Cumulative effect of adopting ASU 2016-01 | [1] | (85) | |||||
Investment securities, OCI (loss) | 6,934 | (6,870) | |||||
AOCI (loss), end of period | (2,235) | (3,460) | |||||
Accumulated other comprehensive income (loss), tax | |||||||
AOCI (loss), beginning of period | (1,926) | 716 | |||||
OCI (loss) before reclassifications | 1,843 | (1,497) | |||||
Realized investment (gains) losses | (403) | 72 | |||||
Impairment losses | 16 | 0 | |||||
Cumulative effect of adopting ASU 2016-01 | [1] | (18) | |||||
Investment securities, OCI (loss) | 1,456 | (1,443) | |||||
AOCI (loss), end of period | (470) | (727) | |||||
Accumulated other comprehensive income (loss), net of tax | |||||||
AOCI (loss), beginning of period | (7,243) | 2,694 | |||||
OCI (loss) before reclassifications | 6,931 | (5,633) | |||||
Realized investment (gains) losses | (1,515) | 273 | |||||
Impairment losses | 62 | 0 | |||||
Cumulative effect of adopting ASU 2016-01 | [1] | (67) | |||||
Investment securities, OCI (loss) | 5,478 | (5,427) | |||||
AOCI (loss), end of period | (1,765) | (2,733) | |||||
Pension and other postretirement plans: | |||||||
Accumulated other comprehensive income (loss), before tax | |||||||
AOCI (loss), beginning of period | (155,749) | (200,954) | |||||
Amortization of prior service costs | [2] | 349 | 0 | ||||
Amortization of net actuarial loss | [2] | 1,210 | 0 | ||||
Pension and other postretirement plans, OCI (loss) | 1,559 | 0 | |||||
AOCI (loss), end of period | (154,190) | (200,954) | |||||
Accumulated other comprehensive income (loss), tax | |||||||
AOCI (loss), beginning of period | (32,708) | (42,201) | |||||
Amortization of prior service costs | [2] | 73 | 0 | ||||
Amortization of net actuarial loss | [2] | 254 | 0 | ||||
Pension and other postretirement plans, OCI (loss) | 327 | 0 | |||||
AOCI (loss), end of period | (32,381) | (42,201) | |||||
Accumulated other comprehensive income (loss), net of tax | |||||||
AOCI (loss), beginning of period | (123,041) | (158,753) | |||||
Amortization of prior service costs | [2] | 276 | 0 | ||||
Amortization of net actuarial loss | [2] | 956 | 0 | ||||
Pension and other postretirement plans, OCI (loss) | 1,232 | 0 | |||||
AOCI (loss), end of period | (121,809) | (158,753) | |||||
Total | |||||||
Accumulated other comprehensive income (loss), before tax | |||||||
AOCI (loss), beginning of period | (164,918) | (197,544) | |||||
Investment securities, OCI (loss) | 6,934 | (6,870) | |||||
Pension and other postretirement plans, OCI (loss) | 1,559 | 0 | |||||
OCI (loss) | 8,493 | (6,870) | |||||
AOCI (loss), end of period | (156,425) | (204,414) | |||||
Accumulated other comprehensive income (loss), tax | |||||||
AOCI (loss), beginning of period | (34,634) | (41,485) | |||||
Investment securities, OCI (loss) | 1,456 | (1,443) | |||||
Pension and other postretirement plans, OCI (loss) | 327 | 0 | |||||
OCI (loss) | 1,783 | (1,443) | |||||
AOCI (loss), end of period | (32,851) | (42,928) | |||||
Accumulated other comprehensive income (loss), net of tax | |||||||
AOCI (loss), beginning of period | (130,284) | (156,059) | |||||
Investment securities, OCI (loss) | 5,478 | (5,427) | |||||
Pension and other postretirement plans, OCI (loss) | 1,232 | 0 | |||||
OCI (loss) | 6,710 | (5,427) | |||||
AOCI (loss), end of period | $ (123,574) | $ (161,486) | |||||
|
Concentrations of Credit Risk (Details) - USD ($) $ in Thousands |
Mar. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
Concentrations of credit risk from unsecured receivables | ||
Receivables from Erie Insurance Exchange and its subsidiaries | $ 456,135 | $ 449,873 |
Commitments and Contingencies (Details) $ in Millions |
Mar. 31, 2019
USD ($)
|
---|---|
Contractual commitments | |
Represents the entity's maximum contractual commitments to invest in its limited partnership investments | $ 9.8 |
Private equity | |
Contractual commitments | |
Represents the entity's maximum contractual commitments to invest in its limited partnership investments | 4.4 |
Mezzanine debt | |
Contractual commitments | |
Represents the entity's maximum contractual commitments to invest in its limited partnership investments | $ 5.4 |
Z6?2+9?16YGD17!3>69(-4' "A(MB$ F7RH 5X4*6'3PML#>1L#070$Z
M/4#-3]8>-FY^[.3'F@]7_#@V>C!!4@WI-21+8!091FQ4FF2K?K[1DCBU)):7
M])U>I$Y^:GE)#975!(E7*I,X,U[ZW@9]2F*0N:5D3BF9+<5X\U5F58D -(^'
M#7JG([E31F[+@(:,W*J09E%HR+!!'W1DXY2RL:68!VUC':$J.]M%5U&\B-00\2(5W)43Y/U- >V?ZTA63^-)C3/Q^P?4$L#!!0 ( (^#HDYQ&I(GP@0 .P6 8
M >&PO=V]R:W-H965T 1&=%_:1QSOYA(_;_DN86K:6G-#YFXWSKQ =
M^%*2&]]JXQ_8["BH7##OO6W&-1L=A]WT@MC\C/-_4$L#!!0 ( (^#HD[N
MU FI83PWJ"1?UU*J>I(NI53%6:"T)UI) +1$/(!76>C7^RRWD
M'8.U::KK[/28\RD''_6E[P$ 7:CX^F*PV(T6NQ4A
M0V!=&E/ #-:EL2.8L7K"M3@'J '(X,5S;K#4C9:Z%>(T#):E\07<8%F:,(*;
MH+\U-EEPP4%(9VSF>X.5;L R+FQB6)2F+N &B]+H!5-SD\ EMG;@<@.1,=:4
M&XMU;K,Z'XZ 56EE/#46J]+JU5)1TV,&7P;E4H_< &ATM<\L5):8;RUU*\1
M6JQ+ZPK8P;JT>KG4[&AG?<7#6ZQ@JQ4L9U/NSP:$64=KT&>AH3%87W-'9;&(
M+1*Q)T-@$=L"$5LL8CM"Q%9+D_E-!,W[38=E[+2,K00R!-:Q*]"QPSIV(W3L
MM#B)WP3(*W[381D[)&/2JCC211?(V&$9NQ$R=EK&S&\B:-YO.JQXIQ5OA;0J
M#FO3Q0)VL#:==KV:'=W:8K\)@%F_Z;#8'6AQA2R.'NO2%[2X'NO2CVAQO>Y;
MB=]$R*S?]%CJ'C2XA@V!9>D+&ER/9>E'-+A>MZW$;R)DUF]Z&]"D>
MB](7]+<>B]*/Z&^];EJ)WX3(G-_T6.<>=+>&]"D>R](7=+,#"# 4=;B"WE/5JJ;G1GI=Q /YA/*WE(HA!0:PEX ,"A@DX). M03 @X)C AP0^&($_
M2FF'"5M,V6(H#]DXJ0#%@B@:I?4:%7(RFL-'0$5(;Z8'N@*H*P"Z DP00H)P
M>F8C2!!-R&R'\?M":<#X*+, !3(;3 &PO=V]R:W-H
M965TQB8_#6$2=
MOEYC%9MF+"GY^/=&PO
M=V]R:W-H965T
UDV$=9_YKV78!G0OH4D##X9!)*#C_PBPK,JU&I*>S[YF_
MXOA W=F4/AF.(GQSYHW+7@KZ$&7DXHEFS''"T!4F7A#$L2\2=$OB2#^5TW2W
M3;#;]+@+!,E:/TVW"?:;!/M L/NOR?BFR2T,W19)-D62SP1INR,_H5F)P2&$ R$ /V3$!I"^"@A,H1H(*!$5ZM/1==F@P7.4T8[A_6?
MM\7J+T++2%:_4$%=;/U.EH?+Z#F/XB3USDK(8%8])AAAT(#PI/JP16#;8A7<
MT$/?O]YB;<.@:\SF%A/%"[N1T)IKJ 7BL<#,MPM$5H%("X17 A.7JQXSTYA&
M8YX0BN:3?&VH16#W$EN]Q!8O=P1F5H'9X]686P7F#U2CQT3_J<8M"BUBNY7$
M:B6Q6 GM @NKP.+Q8B#??I!\BX=H\@L;T%6F=W:Y
+E<20@0;(@C@$371DE29+C61P *B/I@SA24$P*B,E@@@PDR);'
MD8,$^8(X\CNC&./YQP&!8@)+P0'<< $@)G] \:!G\?) ,-QPF"R(9 3=O'Q"
M\GGO RBZU9Y6Z'-;N_VY(,0FAG&X,DP5N:8GB:<';0=IF8LA[-JF&C1C>