XML 22 R9.htm IDEA: XBRL DOCUMENT
v3.10.0.1

Investments | 12 Months Ended
--- | ---
Dec. 31, 2018
Investments Debt And Equity Securities [Abstract] |
Investments |
2. | Investments
Short-term investments held at December 31, 2018 include $ 13.4 million of corporate bonds and $0.8 million of obligations of states and political subdivisions. Short-term investments held at December 31, 2017 include $25.8 million of U.S. Treasury securities and obligations of U.S. government agencies. In 2017, AMERISAFE redeemed an investment in a limited partnership hedge fund accounted for under the equity method. 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, 2018 are summarized as follows:
|  | Amortized Cost |  |  | Gross Unrealized Gains |  |  | Gross Unrealized Losses |  |  | Fair Value |
|  | (in thousands) |
States and political subdivisions |  | $ | 445,922 |  |  | $ | 5,109 |  |  | $ | (2,084 | ) |  | $ | 448,947 |
Corporate bonds |  |  | 91,762 |  |  |  | 62 |  |  |  | (455 | ) |  |  | 91,369 |
U.S. agency-based mortgage-backed securities |  |  | 8,102 |  |  |  | 327 |  |  |  | (80 | ) |  |  | 8,349 |
U.S. Treasury securities and obligations of U.S. government agencies |  |  | 67,042 |  |  |  | 340 |  |  |  | (339 | ) |  |  | 67,043 |
Asset-backed securities |  |  | 1,050 |  |  |  | 22 |  |  |  | (8 | ) |  |  | 1,064 |
Totals |  | $ | 613,878 |  |  | $ | 5,860 |  |  | $ | (2,966 | ) |  | $ | 616,772 |
The gross unrealized gains and losses on, and the amortized cost and fair value of, those investments classified as available-for-sale at December 31, 2018 are summarized as follows:
|  | Amortized Cost |  |  | Gross Unrealized Gains |  |  | Gross Unrealized Losses |  |  | Fair Value |
|  | (in thousands) |
States and political subdivisions |  | $ | 231,848 |  |  | $ | 3,515 |  |  | $ | (2,118 | ) |  | $ | 233,245 |
Corporate bonds |  |  | 173,904 |  |  |  | 243 |  |  |  | (933 | ) |  |  | 173,214 |
U.S. agency-based mortgage-backed securities |  |  | 12,835 |  |  |  | — |  |  |  | (320 | ) |  |  | 12,515 |
U.S. Treasury securities and obligations of U.S. government agencies |  |  | 61,185 |  |  |  | — |  |  |  | (1,429 | ) |  |  | 59,756 |
Totals |  | $ | 479,772 |  |  | $ | 3,758 |  |  | $ | (4,800 | ) |  | $ | 478,730 |
The gross unrealized gains and losses on, and the cost of equity securities at December 31, 2018 are summarized as follows:
|  | Cost |  |  | Gross Unrealized Gains |  |  | Gross Unrealized Losses |  |  | Fair Value |
|  | (in thousands) |
Equity securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Domestic common stock |  | $ | 19,962 |  |  | $ | 30 |  |  | $ | (1,341 | ) |  | $ | 18,651 |
Total equity securities |  | $ | 19,962 |  |  | $ | 30 |  |  | $ | (1,341 | ) |  | $ | 18,651 |
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, 2017 are summarized as follows:
|  | Amortized Cost |  |  | Gross Unrealized Gains |  |  | Gross Unrealized Losses |  |  | Fair Value |
|  | (in thousands) |
States and political subdivisions |  | $ | 460,428 |  |  | $ | 9,628 |  |  | $ | (955 | ) |  | $ | 469,101 |
Corporate bonds |  |  | 100,024 |  |  |  | 190 |  |  |  | (167 | ) |  |  | 100,047 |
U.S. agency-based mortgage-backed securities |  |  | 10,260 |  |  |  | 625 |  |  |  | (40 | ) |  |  | 10,845 |
U.S. Treasury securities and obligations of U.S. government agencies |  |  | 57,657 |  |  |  | 548 |  |  |  | (198 | ) |  |  | 58,007 |
Asset-backed securities |  |  | 1,299 |  |  |  | 25 |  |  |  | (15 | ) |  |  | 1,309 |
Totals |  | $ | 629,668 |  |  | $ | 11,016 |  |  | $ | (1,375 | ) |  | $ | 639,309 |
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, 2017 are summarized as follows:
|  | Cost or Amortized Cost |  |  | Gross Unrealized Gains |  |  | Gross Unrealized Losses |  |  | Fair Value |
|  | (in thousands) |
Fixed maturity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
States and political subdivisions |  | $ | 244,898 |  |  | $ | 6,819 |  |  | $ | (577 | ) |  | $ | 251,140 |
Corporate bonds |  |  | 130,210 |  |  |  | 224 |  |  |  | (212 | ) |  |  | 130,222 |
U.S. agency-based mortgage-backed securities |  |  | 18,813 |  |  |  | — |  |  |  | (799 | ) |  |  | 18,014 |
U.S. Treasury securities and obligations of U.S. government agencies |  |  | 67,315 |  |  |  | 29 |  |  |  | (1,126 | ) |  |  | 66,218 |
Total fixed maturity |  |  | 461,236 |  |  |  | 7,072 |  |  |  | (2,714 | ) |  |  | 465,594 |
Equity securities |  |  | 8,503 |  |  |  | 779 |  |  |  | — |  |  |  | 9,282 |
Totals |  | $ | 469,739 |  |  | $ | 7,851 |  |  | $ | (2,714 | ) |  | $ | 474,876 |
A summary of the amortized cost and fair value of investments in fixed maturity securities, classified as held-to-maturity at December 31, 2018, by contractual maturity, is as follows:
|  | Amortized Cost |  |  | Fair Value |
|  | (in thousands) |
Maturity: |  |  |  |  |  |  |  |
Within one year |  | $ | 76,875 |  |  | $ | 76,861 |
After one year through five years |  |  | 256,614 |  |  |  | 257,530 |
After five years through ten years |  |  | 81,311 |  |  |  | 81,755 |
After ten years |  |  | 189,926 |  |  |  | 191,213 |
U.S. agency-based mortgage-backed securities |  |  | 8,102 |  |  |  | 8,349 |
Asset-backed securities |  |  | 1,050 |  |  |  | 1,064 |
Totals |  | $ | 613,878 |  |  | $ | 616,772 |
A summary of the amortized cost and fair value of investments in fixed maturity securities, classified as available-for-sale at December 31, 2018, by contractual maturity, is as follows:
|  | Amortized Cost |  |  | Fair Value |
|  | (in thousands) |
Maturity: |  |  |  |  |  |  |  |
Within one year |  | $ | 61,650 |  |  | $ | 61,435 |
After one year through five years |  |  | 175,743 |  |  |  | 174,213 |
After five years through ten years |  |  | 47,058 |  |  |  | 46,725 |
After ten years |  |  | 182,486 |  |  |  | 183,842 |
U.S. agency-based mortgage-backed securities |  |  | 12,835 |  |  |  | 12,515 |
Totals |  | $ | 479,772 |  |  | $ | 478,730 |
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, 2018, there were $16.1 million of held-to-maturity investments and $2.5 million of available-for-sale 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 2018, 2017 and 2016 is as follows:
|  | Fixed Maturity Securities Available for Sale |  |  | Equity Securities |  |  | Other |  |  | Total |
|  | (in thousands) |
Year ended December 31, 2018 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Proceeds from sales |  | $ | 15,025 |  |  | $ | 3 |  |  | $ | — |  |  | $ | 15,028 |
Gross realized investment gains |  | $ | 238 |  |  | $ | 1 |  |  | $ | — |  |  | $ | 239 |
Gross realized investment losses |  |  | (1,354 | ) |  |  | — |  |  |  | — |  |  |  | (1,354 | )
Net realized investment gains (losses) |  |  | (1,116 | ) |  |  | 1 |  |  |  | — |  |  |  | (1,115 | )
Other, including losses on calls and redemptions |  |  | (144 | ) |  |  | — |  |  |  | (277 | ) |  |  | (421 | )
Net realized gains (losses) on investments |  | $ | (1,260 | ) |  | $ | 1 |  |  | $ | (277 | ) |  | $ | (1,536 | )
Year ended December 31, 2017 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Proceeds from sales |  | $ | 14,591 |  |  | $ | 1 |  |  | $ | 13,172 |  |  | $ | 27,764 |
Gross realized investment gains |  | $ | 485 |  |  | $ | 1 |  |  | $ | — |  |  | $ | 486 |
Gross realized investment losses |  |  | (5 | ) |  |  | — |  |  |  | — |  |  |  | (5 | )
Net realized investment gains |  |  | 480 |  |  |  | 1 |  |  |  | — |  |  |  | 481 |
Other, including losses on calls and redemptions |  |  | (520 | ) |  |  | — |  |  |  | (608 | ) |  |  | (1,128 | )
Net realized gains (losses) on investments |  | $ | (40 | ) |  | $ | 1 |  |  | $ | (608 | ) |  | $ | (647 | )
Year ended December 31, 2016 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Proceeds from sales |  | $ | 54,730 |  |  | $ | — |  |  | $ | 4,609 |  |  | $ | 59,339 |
Gross realized investment gains |  | $ | 823 |  |  | $ | — |  |  | $ | 68 |  |  | $ | 891 |
Gross realized investment losses |  |  | (1,728 | ) |  |  | — |  |  |  | — |  |  |  | (1,728 | )
Net realized investment gains (losses) |  |  | (905 | ) |  |  | — |  |  |  | 68 |  |  |  | (837 | )
Other, including gains on calls and redemptions |  |  | 274 |  |  |  | — |  |  |  | 69 |  |  |  | 343 |
Net realized gains (losses) on investments |  | $ | (631 | ) |  | $ | — |  |  | $ | 137 |  |  | $ | (494 | )
In 2016, the Company sold $3.0 million in bonds that were classified as held-to-maturity. In January 2016, Moody’s downgraded the bonds to B2 from B1 citing increasing liquidity concerns and also placed the bonds on negative outlook indicating the rating could be downgraded further. Given the evidence of significant credit deterioration, the Company elected to sell the bonds for $3.0 million, recognizing a $0.1 million realized gain. Major categories of the Company’s net investment income are summarized as follows:
|  | Year Ended December 31, |
|  | 2018 |  |  | 2017 |  |  | 2016 |
|  | (in thousands) |
Gross investment income: |  |  |  |  |  |  |  |  |  |  |  |
Fixed maturity securities |  | $ | 28,762 |  |  | $ | 28,961 |  |  | $ | 27,837 |
Equity securities |  |  | 448 |  |  |  | 201 |  |  |  | — |
Short-term investments and cash and cash equivalents |  |  | 2,208 |  |  |  | 1,117 |  |  |  | 348 |
Other investments |  |  | — |  |  |  | 104 |  |  |  | 1,568 |
Total gross investment income |  |  | 31,418 |  |  |  | 30,383 |  |  |  | 29,753 |
Investment expenses |  |  | (966 | ) |  |  | (1,102 | ) |  |  | (1,647 | )
Net investment income |  | $ | 30,452 |  |  | $ | 29,281 |  |  | $ | 28,106 |
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, 2018 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Held-to-Maturity |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Fixed maturity securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
States and political subdivisions |  | $ | 28,369 |  |  | $ | 59 |  |  | $ | 180,550 |  |  | $ | 2,025 |  |  | $ | 208,919 |  |  | $ | 2,084 |
Corporate bonds |  |  | 17,448 |  |  |  | 36 |  |  |  | 48,315 |  |  |  | 419 |  |  |  | 65,763 |  |  |  | 455 |
U.S. agency-based mortgage-backed securities |  |  | — |  |  |  | — |  |  |  | 2,287 |  |  |  | 80 |  |  |  | 2,287 |  |  |  | 80 |
U.S. Treasury securities and obligations of U.S. government agencies |  |  | 2,865 |  |  |  | 4 |  |  |  | 46,486 |  |  |  | 335 |  |  |  | 49,351 |  |  |  | 339 |
Asset-backed securities |  |  | — |  |  |  | — |  |  |  | 525 |  |  |  | 8 |  |  |  | 525 |  |  |  | 8 |
Total held-to-maturity securities |  |  | 48,682 |  |  |  | 99 |  |  |  | 278,163 |  |  |  | 2,867 |  |  |  | 326,845 |  |  |  | 2,966 |
Available-for-Sale |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Fixed maturity securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
States and political subdivisions |  | $ | 16,109 |  |  | $ | 81 |  |  | $ | 76,255 |  |  | $ | 2,037 |  |  | $ | 92,364 |  |  | $ | 2,118 |
Corporate bonds |  |  | 59,099 |  |  |  | 279 |  |  |  | 70,306 |  |  |  | 654 |  |  |  | 129,405 |  |  |  | 933 |
U.S. agency-based mortgage-backed securities |  |  | — |  |  |  | — |  |  |  | 12,515 |  |  |  | 320 |  |  |  | 12,515 |  |  |  | 320 |
U.S. Treasury securities and obligations of U.S. government agencies |  |  | — |  |  |  | — |  |  |  | 59,756 |  |  |  | 1,429 |  |  |  | 59,756 |  |  |  | 1,429 |
Total available-for-sale securities |  |  | 75,208 |  |  |  | 360 |  |  |  | 218,832 |  |  |  | 4,440 |  |  |  | 294,040 |  |  |  | 4,800 |
Total |  | $ | 123,890 |  |  | $ | 459 |  |  | $ | 496,995 |  |  | $ | 7,307 |  |  | $ | 620,885 |  |  | $ | 7,766 |
December 31, 2017 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Held-to-Maturity |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Fixed maturity securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
States and political subdivisions |  | $ | 110,698 |  |  | $ | 654 |  |  | $ | 19,895 |  |  | $ | 301 |  |  | $ | 130,593 |  |  | $ | 955 |
Corporate bonds |  |  | 56,425 |  |  |  | 156 |  |  |  | 4,121 |  |  |  | 11 |  |  |  | 60,546 |  |  |  | 167 |
U.S. agency-based mortgage-backed securities |  |  | 2,798 |  |  |  | 40 |  |  |  | — |  |  |  | — |  |  |  | 2,798 |  |  |  | 40 |
U.S. Treasury securities and obligations of U.S. government agencies |  |  | 48,153 |  |  |  | 122 |  |  |  | 3,948 |  |  |  | 76 |  |  |  | 52,101 |  |  |  | 198 |
Asset-backed securities |  |  | — |  |  |  | — |  |  |  | 967 |  |  |  | 15 |  |  |  | 967 |  |  |  | 15 |
Total held-to-maturity securities |  |  | 218,074 |  |  |  | 972 |  |  |  | 28,931 |  |  |  | 403 |  |  |  | 247,005 |  |  |  | 1,375 |
Available-for-Sale |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Fixed maturity securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
States and political subdivisions |  | $ | 23,365 |  |  | $ | 86 |  |  | $ | 19,153 |  |  | $ | 491 |  |  | $ | 42,518 |  |  | $ | 577 |
Corporate bonds |  |  | 82,795 |  |  |  | 171 |  |  |  | 5,888 |  |  |  | 41 |  |  |  | 88,683 |  |  |  | 212 |
U.S. agency-based mortgage-backed securities |  |  | 14,686 |  |  |  | 59 |  |  |  | 3,328 |  |  |  | 740 |  |  |  | 18,014 |  |  |  | 799 |
U.S. Treasury securities and obligations of U.S. government agencies |  |  | 14,730 |  |  |  | 204 |  |  |  | 47,716 |  |  |  | 922 |  |  |  | 62,446 |  |  |  | 1,126 |
Total available-for-sale securities |  |  | 135,576 |  |  |  | 520 |  |  |  | 76,085 |  |  |  | 2,194 |  |  |  | 211,661 |  |  |  | 2,714 |
Total |  | $ | 353,650 |  |  | $ | 1,492 |  |  | $ | 105,016 |  |  | $ | 2,597 |  |  | $ | 458,666 |  |  | $ | 4,089 |
At December 31, 2018, the Company held 398 individual fixed maturity securities that were in an unrealized loss position, of which 323 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 preferred 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.
We reviewed all securities with unrealized losses in accordance with the impairment policy described above. 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. We expect to recover the carrying value of these securities as it is not more likely than not that we will be required to sell the securities before the recovery of its amortized cost basis. In 2018, 2017 and 2016, there were no impairment losses recognized for other-than-temporary declines in the fair value of our investments.

X
- References No definition available. + 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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2209399 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 946 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2324412 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -URI http://asc.fasb.org/topic&trid=2196928 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 940 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2176304 + Details
Name: | us-gaap_InvestmentsInDebtAndMarketableEquitySecuritiesAndCertainTradingAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration