XML 48 R9.htm IDEA: XBRL DOCUMENT
v2.4.0.8

Investments | 12 Months Ended
--- | ---
Dec. 31, 2013
Investments Debt And Equity Securities [Abstract] |
Investments |
2. | Investments
Short-term investments held at December 31, 2013 include $82.7 million of corporate bonds, certificates of deposit of $0.9 million and $0.8 million of municipal securities. Short-term investments held at December 31, 2012 include $63.5 million of corporate bonds, certificates of deposits of $0.9 million and $4.5 million of municipal securities. All certificates of deposits are fully insured by the Federal Deposit Insurance Corporation. Amerisafe holds investments in a LP, accounted for under the equity method. The carrying value of this investment is $10.6 million at December 31, 2013. The gross unrealized gains and losses on, and the amortized cost and fair value of, those investments classified as held-to-maturity at December 31, 2013 are summarized as follows:
|  | Amortized Cost |  |  | Gross Unrealized Gains |  |  | Gross Unrealized Losses |  |  | Fair Value |
|  | (In thousands) |
States and political subdivisions |  | $ | 381,674 |  |  | $ | 18,634 |  |  | $ | (1,153) |  |  | $ | 399,155 |
Corporate bonds |  |  | 67,423 |  |  |  | 861 |  |  |  | (41) |  |  |  | 68,243 |
Commercial mortgage-backed securities |  |  | 50,813 |  |  |  | 3,431 |  |  |  | — |  |  |  | 54,244 |
U.S. agency-based mortgage-backed securities |  |  | 21,775 |  |  |  | 1,790 |  |  |  | — |  |  |  | 23,565 |
U.S. Treasury securities and obligations of U.S. Government agencies |  |  | 11,514 |  |  |  | 1,002 |  |  |  | — |  |  |  | 12,516 |
Asset-backed securities |  |  | 3,384 |  |  |  | 216 |  |  |  | (144) |  |  |  | 3,456 |
Totals |  | $ | 536,583 |  |  | $ | 25,934 |  |  | $ | (1,338) |  |  | $ | 561,179 |
The gross unrealized gains and losses on, and the cost or amortized cost and fair value of, those investments classified as available-for-sale at December 31, 2013 are summarized as follows:
|  | Cost or Amortized Cost |  |  | Gross Unrealized Gains |  |  | Gross Unrealized Losses |  |  | Fair Value |
|  | (In thousands) |
Fixed Maturity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
States and political subdivisions |  | $ | 154,024 |  |  | $ | 1,491 |  |  | $ | (5,140) |  |  | $ | 150,375 |
Corporate bonds |  |  | 80,344 |  |  |  | 445 |  |  |  | (361) |  |  |  | 80,428 |
U.S. agency-based mortgage-backed securities |  |  | 10,041 |  |  |  | — |  |  |  | (2,967) |  |  |  | 7,074 |
Total Fixed Maturity |  |  | 244,409 |  |  |  | 1,936 |  |  |  | (8,468) |  |  |  | 237,877 |
Other investments |  |  | 10,000 |  |  |  | 591 |  |  |  | — |  |  |  | 10,591 |
Equity securities |  |  | 9,482 |  |  |  | 387 |  |  |  | (567) |  |  |  | 9,302 |
Totals |  | $ | 263,891 |  |  | $ | 2,914 |  |  | $ | (9,035) |  |  | $ | 257,770 |
The gross unrealized gains and losses on, and the amortized cost and fair value of, those investments classified as held-to-maturity at December 31, 2012 are summarized as follows:
|  | Amortized Cost |  |  | Gross Unrealized Gains |  |  | Gross Unrealized Losses |  |  | Fair Value |
|  | (In thousands) |
States and political subdivisions |  | $ | 400,687 |  |  | $ | 31,387 |  |  | $ | (106) |  |  | $ | 431,968 |
Corporate bonds |  |  | 82,824 |  |  |  | 1,565 |  |  |  | (12) |  |  |  | 84,377 |
Commercial mortgage-backed securities |  |  | 51,529 |  |  |  | 6,433 |  |  |  | — |  |  |  | 57,962 |
U.S. agency-based mortgage-backed securities |  |  | 32,984 |  |  |  | 3,063 |  |  |  | (5) |  |  |  | 36,042 |
U.S. Treasury securities and obligations of U.S. Government agencies |  |  | 11,034 |  |  |  | 1,721 |  |  |  | — |  |  |  | 12,755 |
Asset-backed securities |  |  | 4,229 |  |  |  | 192 |  |  |  | (176) |  |  |  | 4,245 |
Totals |  | $ | 583,287 |  |  | $ | 44,361 |  |  | $ | (299) |  |  | $ | 627,349 |
The gross unrealized gains and losses on, and the cost or amortized cost and fair value of, those investments classified as available-for-sale at December 31, 2012 are summarized as follows:
|  | Cost or Amortized Cost |  |  | Gross Unrealized Gains |  |  | Gross Unrealized Losses |  |  | Fair Value |
|  | (In thousands) |
Fixed Maturity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
States and political subdivisions |  | $ | 93,362 |  |  | $ | 5,022 |  |  | $ | (142) |  |  | $ | 98,242 |
Corporate bonds |  |  | 39,211 |  |  |  | 623 |  |  |  | (24) |  |  |  | 39,810 |
U.S. agency-based mortgage-backed securities |  |  | 11,941 |  |  |  | 5 |  |  |  | (859) |  |  |  | 11,087 |
Total Fixed Maturity |  |  | 144,514 |  |  |  | 5,650 |  |  |  | (1,025) |  |  |  | 149,139 |
Equity securities |  |  | 7,000 |  |  |  | 451 |  |  |  | (685) |  |  |  | 6,766 |
Totals |  | $ | 151,514 |  |  | $ | 6,101 |  |  | $ | (1,710) |  |  | $ | 155,905 |
A summary of the amortized cost and fair value of investments in fixed maturity securities, classified as held-to-maturity at December 31, 2013, by contractual maturity, is as follows:
|  | Amortized Cost |  |  | Fair Value |
|  | (In thousands) |
Maturity: |  |  |  |  |  |  |  |
Due in 2014 |  | $ | 55,379 |  |  | $ | 55,758 |
In 2015 through 2018 |  |  | 139,890 |  |  |  | 147,515 |
In 2019 through 2023 |  |  | 134,404 |  |  |  | 143,566 |
After 2023 |  |  | 130,938 |  |  |  | 133,075 |
U.S. agency-based mortgage-backed securities |  |  | 21,775 |  |  |  | 23,565 |
Commercial mortgage-backed securities |  |  | 50,813 |  |  |  | 54,244 |
Asset-backed securities |  |  | 3,384 |  |  |  | 3,456 |
Totals |  | $ | 536,583 |  |  | $ | 561,179 |
A summary of the amortized cost and fair value of investments in fixed maturity securities, classified as available-for-sale at December 31, 2013, by contractual maturity, is as follows:
|  | Amortized Cost |  |  | Fair Value |
|  | (In thousands) |
Maturity: |  |  |  |  |  |  |  |
Due in 2014 |  | $ | 36,497 |  |  | $ | 36,576 |
In 2015 through 2018 |  |  | 34,339 |  |  |  | 34,486 |
In 2019 through 2023 |  |  | 21,141 |  |  |  | 21,358 |
After 2023 |  |  | 142,391 |  |  |  | 138,383 |
U.S. agency-based mortgage-backed securities |  |  | 10,041 |  |  |  | 7,074 |
Totals |  | $ | 244,409 |  |  | $ | 237,877 |
Actual maturities may differ from contractual maturities because certain borrowers have the right to call or prepay certain obligations with or without call or prepayment penalties. At December 31, 2013, there were $16.3 million of held-to-maturity investments on deposit with regulatory agencies of states in which the Company does business. A summary of the Company’s realized gains and losses on sales, calls or redemptions of investments for 2013, 2012 and 2011 is as follows:
|  | Fixed Maturity Securities Available for Sale |  |  | Equity Securities |  |  | Other |  |  | Total |
|  | (In thousands) |
Year ended December 31, 2013 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Proceeds from sales |  | $ | 2,090 |  |  | $ | 8,900 |  |  | $ | — |  |  | $ | 10,990 |
Gross realized investment gains |  | $ | 90 |  |  | $ | 1,264 |  |  | $ | — |  |  | $ | 1,354 |
Gross realized investment (losses) |  |  | — |  |  |  | (471) |  |  |  | — |  |  |  | (471) |
Net realized investment gains |  |  | 90 |  |  |  | 793 |  |  |  | — |  |  |  | 883 |
Impairments |  |  | — |  |  |  | (2,229) |  |  |  | — |  |  |  | (2,229) |
Other, including gains on calls and redemptions |  |  | 38 |  |  |  | — |  |  |  | 97 |  |  |  | 135 |
Net realized investment gains (losses) |  | $ | 128 |  |  | $ | (1,436) |  |  | $ | 97 |  |  | $ | (1,211) |
Year ended December 31, 2012 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Proceeds from sales |  | $ | 22,363 |  |  | $ | 10,777 |  |  | $ | — |  |  | $ | 33,140 |
Gross realized investment gains |  | $ | 1,555 |  |  | $ | 1,186 |  |  | $ | — |  |  | $ | 2,741 |
Gross realized investment (losses) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Net realized investment gains |  |  | 1,555 |  |  |  | 1,186 |  |  |  | — |  |  |  | 2,741 |
Other, including gains on calls and redemptions |  |  | 15 |  |  |  | — |  |  |  | 223 |  |  |  | 238 |
Net realized investment gains |  | $ | 1,570 |  |  | $ | 1,186 |  |  | $ | 223 |  |  | $ | 2,979 |
Year ended December 31, 2011 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Proceeds from sales |  | $ | 21,560 |  |  | $ | 14,769 |  |  | $ | — |  |  | $ | 36,329 |
Gross realized investment gains |  | $ | 815 |  |  | $ | 1,621 |  |  | $ | — |  |  | $ | 2,436 |
Gross realized investment (losses) |  |  | — |  |  |  | (98) |  |  |  | (1) |  |  |  | (99) |
Net realized investment gains (losses) |  |  | 815 |  |  |  | 1,523 |  |  |  | (1) |  |  |  | 2,337 |
Impairments |  |  | — |  |  |  | — |  |  |  | (169) |  |  |  | (169) |
Other, including gains on calls and redemptions |  |  | — |  |  |  | — |  |  |  | 60 |  |  |  | 60 |
Net realized investment gains (losses) |  | $ | 815 |  |  | $ | 1,523 |  |  | $ | (110) |  |  | $ | 2,228 |
Major categories of the Company’s net investment income are summarized as follows:
|  | Year Ended December 31, |
| 2013 |  |  | 2012 |  |  | 2011 |
|  | (In thousands) |
Gross investment income: |  |  |  |  |  |  |  |  |  |  |  |
Fixed maturity securities |  | $ | 26,422 |  |  | $ | 27,167 |  |  | $ | 26,769 |
Short-term investments and cash and cash equivalents |  |  | 634 |  |  |  | 489 |  |  |  | 590 |
Equity securities |  |  | 543 |  |  |  | 446 |  |  |  | 181 |
Other investments |  |  | 803 |  |  |  | — |  |  |  | — |
Total gross investment income |  |  | 28,402 |  |  |  | 28,102 |  |  |  | 27,540 |
Investment expenses |  |  | (1,373) |  |  |  | (1,084) |  |  |  | (1,200) |
Net investment income |  | $ | 27,029 |  |  | $ | 27,018 |  |  | $ | 26,340 |
The following table summarizes the fair value and gross unrealized losses on securities, aggregated by major investment category and length of time that the individual securities have been in a continuous unrealized loss position:
|  | Less Than 12 Months |  |  | 12 Months or Greater |  |  | Total |
|  | Fair Value of Investments with Unrealized Losses |  |  | Gross Unrealized Losses |  |  | Fair Value of Investments with Unrealized Losses |  |  | Gross Unrealized Losses |  |  | Fair Value of Investments with Unrealized Losses |  |  | Gross Unrealized Losses |
|  | (In thousands) |
December 31, 2013 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Held-to-Maturity |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Fixed maturity securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Corporate bonds |  | $ | 14,090 |  |  | $ | 41 |  |  | $ | — |  |  | $ | — |  |  | $ | 14,090 |  |  | $ | 41 |
States and political subdivisions |  |  | 54,895 |  |  |  | 1,147 |  |  |  | 311 |  |  |  | 6 |  |  |  | 55,206 |  |  |  | 1,153 |
Asset-backed securities |  |  | — |  |  |  | — |  |  |  | 1,916 |  |  |  | 144 |  |  |  | 1,916 |  |  |  | 144 |
Total held-to-maturity securities |  |  | 68,985 |  |  |  | 1,188 |  |  |  | 2,227 |  |  |  | 150 |  |  |  | 71,212 |  |  |  | 1,338 |
Available-for Sale |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Fixed maturity securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Corporate bonds |  | $ | 29,691 |  |  | $ | 361 |  |  | $ | — |  |  | $ | — |  |  | $ | 29,691 |  |  | $ | 361 |
States and political subdivisions |  |  | 101,908 |  |  |  | 4,798 |  |  |  | 1,753 |  |  |  | 342 |  |  |  | 103,661 |  |  |  | 5,140 |
U.S. agency-based mortgage-backed securities |  |  | 1,303 |  |  |  | 465 |  |  |  | 5,772 |  |  |  | 2,502 |  |  |  | 7,075 |  |  |  | 2,967 |
Equity Securities |  |  | 5,205 |  |  |  | 567 |  |  |  | — |  |  |  | — |  |  |  | 5,205 |  |  |  | 567 |
Total available-for-sale securities |  |  | 138,107 |  |  |  | 6,191 |  |  |  | 7,525 |  |  |  | 2,844 |  |  |  | 145,632 |  |  |  | 9,035 |
Total |  | $ | 207,092 |  |  | $ | 7,379 |  |  | $ | 9,752 |  |  | $ | 2,994 |  |  | $ | 216,844 |  |  | $ | 10,373 |
December 31, 2012 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Held-to-Maturity |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Fixed maturity securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Corporate bonds |  | $ | 10,734 |  |  | $ | 12 |  |  | $ | — |  |  | $ | — |  |  | $ | 10,734 |  |  | $ | 12 |
States and political subdivisions |  |  | 11,913 |  |  |  | 106 |  |  |  | — |  |  |  | — |  |  |  | 11,913 |  |  |  | 106 |
U.S. agency-based mortgage-backed securities |  |  | 117 |  |  |  | — |  |  |  | 68 |  |  |  | 5 |  |  |  | 185 |  |  |  | 5 |
Asset-backed securities |  |  | — |  |  |  | — |  |  |  | 2,277 |  |  |  | 176 |  |  |  | 2,277 |  |  |  | 176 |
Total held-to-maturity securities |  |  | 22,764 |  |  |  | 118 |  |  |  | 2,345 |  |  |  | 181 |  |  |  | 25,109 |  |  |  | 299 |
Available-for Sale |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Fixed maturity securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Corporate bonds |  | $ | 6,411 |  |  | $ | 24 |  |  | $ | — |  |  | $ | — |  |  | $ | 6,411 |  |  | $ | 24 |
States and political subdivisions |  |  | 6,281 |  |  |  | 142 |  |  |  | — |  |  |  | — |  |  |  | 6,281 |  |  |  | 142 |
U.S. agency-based mortgage-backed securities |  |  | 10,919 |  |  |  | 859 |  |  |  | — |  |  |  | — |  |  |  | 10,919 |  |  |  | 859 |
Equity Securities |  |  | 4,186 |  |  |  | 685 |  |  |  | — |  |  |  | — |  |  |  | 4,186 |  |  |  | 685 |
Total available-for-sale securities |  |  | 27,797 |  |  |  | 1,710 |  |  |  | — |  |  |  | — |  |  |  | 27,797 |  |  |  | 1,710 |
Total |  | $ | 50,561 |  |  | $ | 1,828 |  |  | $ | 2,345 |  |  | $ | 181 |  |  | $ | 52,906 |  |  | $ | 2,009 |
At December 31, 2013, the Company held 182 and 8 individual fixed maturity and equity securities, respectively, that were in an unrealized loss position, of which 18 individual fixed maturity securities were in a continuous unrealized loss position for longer than 12 months. The Company regularly reviews its investment portfolio to evaluate the necessity of recording impairment losses for other-than-temporary declines in the fair value of our investments. The Company considers various factors in determining if a decline in the fair value of an individual security is other-than-temporary. The key factors considered are:
| • |  | any reduction or elimination of dividends, or nonpayment of scheduled principal or interest payments;
| • |  | the financial condition and near-term prospects of the issuer of the applicable security, including any specific events that may affect its operations or earnings;
| • |  | how long and by how much the fair value of the security has been below its cost or amortized cost;
| • |  | any downgrades of the security by a rating agency;
| • |  | our intent not to sell the security for a sufficient time period for it to recover its value;
| • |  | the likelihood of being forced to sell the security before the recovery of its value; and
| • |  | an evaluation as to whether there are any credit losses on debt securities.
The Company reviewed all securities with unrealized losses in accordance with the impairment policy described above. With the exception of four equity securities deemed to be other-than-temporarily impaired, the Company expects to hold investments in equity securities for a reasonable period of time sufficient for a recovery of fair value. The Company determined that the unrealized losses in the fixed maturity securities portfolio related primarily to changes in market interest rates since the date of purchase, current conditions in the capital markets and the impact of those conditions on market liquidity and prices generally, and the transfer of the investments from the available-for-sale classification to the held-to-maturity classification in January 2004. Amerisafe did not recognize the unrealized losses in earnings on these fixed maturity securities at December 31, 2013, because we expect to recover the carrying value of these securities since management does not intend to sell the securities and it is not more likely than not that the Company will be required to sell the security before the recovery of its amortized cost basis. In addition, none of the unrealized losses on debt securities are considered credit losses. In 2013, we recorded impairment charges of $2.2 million related to four equity securities. The impairment charges are included in “Net realized gains (losses) on investments” for 2013.

X
- Details
Name: | us-gaap_InvestmentsDebtAndEquitySecuritiesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for investments in certain debt and equity securities. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -SubTopic 10 -Section 50 -Paragraph 6 -URI http://asc.fasb.org/extlink&oid=27724398&loc=d3e27290-111563 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=27724398&loc=d3e27357-111563 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -Glossary Debt Security -URI http://asc.fasb.org/extlink&oid=6509901 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 30 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6379141&loc=d3e15032-111544 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -SubTopic 10 -Section 50 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=27724398&loc=d3e27232-111563 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 320 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6957658&loc=d3e62557-112803 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=27724398&loc=d3e27161-111563 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=27724398&loc=d3e27405-111563 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -Glossary Equity Security -URI http://asc.fasb.org/extlink&oid=6511694 + Details
Name: | us-gaap_InvestmentsInDebtAndMarketableEquitySecuritiesAndCertainTradingAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration