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Quarterly Financial Information | 12 Months Ended
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Dec. 31, 2013
Quarterly Financial Data [Abstract] |
Quarterly Financial Information | Quarterly Financial Information (Unaudited) Summarized quarterly financial data for 2013 and 2012 are as follows:
| Quarter Ended |
| March 31 |  | June 30 |  | September 30 |  | December 31 |
| (Amounts in thousands, except per share data) |
2013 |  |  |  |  |  |  |  |
Net premiums earned | $ | 662,595 |  |  | $ | 675,787 |  |  | $ | 678,913 |  |  | $ | 680,892 |  |
Change in fair value of investments pursuant to the fair value option | $ | 43,467 |  |  | $ | (78,726 | ) |  | $ | 21,815 |  |  | $ | (30,593 | ) |
Income (loss) before income taxes | $ | 90,994 |  |  | $ | (24,959 | ) |  | $ | 54,793 |  |  | $ | 11,268 |  |
Net income (loss) | $ | 66,461 |  |  | $ | (9,264 | ) |  | $ | 39,570 |  |  | $ | 15,376 |  |
Basic earnings per share | $ | 1.21 |  |  | $ | (0.17 | ) |  | $ | 0.72 |  |  | $ | 0.28 |  |
Diluted earnings per share | $ | 1.21 |  |  | $ | (0.17 | ) | (1) | $ | 0.72 |  |  | $ | 0.28 |  |
Dividends paid per share | $ | 0.6125 |  |  | $ | 0.6125 |  |  | $ | 0.6125 |  |  | $ | 0.6150 |  |
2012 |  |  |  |  |  |  |  |
Net premiums earned | $ | 635,812 |  |  | $ | 637,247 |  |  | $ | 646,084 |  |  | $ | 655,777 |  |
Change in fair value of investments pursuant to the fair value option | $ | 49,343 |  |  | $ | (24,788 | ) |  | $ | 44,783 |  |  | $ | (28,944 | ) |
Income (loss) before income taxes | $ | 101,994 |  |  | $ | (18,853 | ) |  | $ | 91,330 |  |  | $ | (39,161 | ) |
Net income (loss) | $ | 73,356 |  |  | $ | (5,264 | ) |  | $ | 66,201 |  |  | $ | (17,382 | ) |
Basic earnings per share | $ | 1.34 |  |  | $ | (0.10 | ) |  | $ | 1.21 |  |  | $ | (0.32 | ) |
Diluted earnings per share | $ | 1.34 |  |  | $ | (0.10 | ) | (1) | $ | 1.21 |  |  | $ | (0.32 | ) | (1)
Dividends paid per share | $ | 0.61 |  |  | $ | 0.61 |  |  | $ | 0.61 |  |  | $ | 0.6125 |  |
__________
(1) | The dilutive impact of incremental shares is excluded from net loss position in accordance with GAAP.
Net income during 2013 was primarily affected by higher net premiums earned offset by catastrophe related losses, and declines in the fair value of the Company's investment portfolio due to the overall decline in the municipal markets. Net income during 2013 was also affected by the consolidation of claims and underwriting operations located outside of California into hub locations, which resulted in approximately $10 million of pre-tax office closure costs and severance related expense during the first quarter of 2013. The primary causes of the net loss during the second quarter of 2013 were driven by increased losses resulting from catastrophe losses due to tornadoes in Oklahoma and severe storms in the Midwest and the Southeast regions, and declines in the fair value of the Company’s municipal and equity securities due to the overall decline in the municipal and equity markets. Net income during 2012 was primarily affected by slightly higher net premiums earned and lower operating expenses, offset by unfavorable development on loss reserves, catastrophe related losses, and higher loss frequency and severity on the California private passenger automobile line of business. The decrease in operating expenses in 2012 was primarily due to ongoing cost reduction efforts and lower profitability related expenses. The unfavorable development of loss reserves is largely the result of re-estimates of California BI losses . The primary causes of the net loss during the second quarter of 2012 were driven by unfavorable development on loss reserves, catastrophe losses in the Midwest region, and declines in the fair value of the Company’s equity securities due to the overall decline in the equity markets. The net loss during the fourth quarter of 2012 was primarily due to increased losses resulting from catastrophe losses from Hurricane Sandy, high seasonal frequency in California, and declines in the fair value of the Company’s municipal and equity securities due to the overall decline in the municipal and equity markets.

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- Definition The entire disclosure for the quarterly financial data in the annual financial statements. The disclosure may include a tabular presentation of financial information for each fiscal quarter for the current and previous year, including revenues, gross profit, income or loss before extraordinary items and earnings per share data. It also includes an indication if the information in the note is unaudited, comments on the aggregate effect of year-end adjustments, and an explanation of matters or transactions that affect comparability or are pertinent to an understanding of the information furnished. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 270 -SubTopic 10 -Section 45 -Paragraph 13 -URI http://asc.fasb.org/extlink&oid=6372559&loc=d3e765-108305 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 270 -SubTopic 10 -Section 45 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=6372559&loc=d3e725-108305 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 270 -SubTopic 10 -Section 50 -Paragraph 1 -Subparagraph (a)-(j) -URI http://asc.fasb.org/extlink&oid=25249566&loc=d3e1280-108306 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 6 -Section G -Subsection 1 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-K (SK) -Number 229 -Section 302 -Paragraph a + Details
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