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Investments (Tables) | 9 Months Ended
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Sep. 30, 2013
Cash And Cash Equivalents [Abstract] |
Investment Holdings by Type of Instrument | The following table presents the Company’s investment holdings by type of instrument as of the periods presented (in thousands):
|  | As of September 30, 2013 |  |  | As of December 31, 2012 |
|  | Cost or Amortized Cost |  |  | Fair Value |  |  | Carrying Value |  |  | Cost or Amortized Cost (4) |  |  | Fair Value |  |  | Carrying Value |
Cash and cash equivalents (1) |  | $ | 137,286 |  |  | $ | 137,286 |  |  | $ | 137,286 |  |  | $ | 347,392 |  |  | $ | 347,392 |  |  | $ | 347,392 |
Restricted cash and cash equivalents |  |  | 2,600 |  |  |  | 2,600 |  |  |  | 2,600 |  |  |  | 33,009 |  |  |  | 33,009 |  |  |  | 33,009 |
Trading portfolio: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Fixed maturities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. government obligations and agencies |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 3,192 |  |  |  | 4,009 |  |  |  | 4,009 |
Equity securities: (4) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Common stock: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Metals and mining |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 31,113 |  |  |  | 26,130 |  |  |  | 26,130 |
Energy |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 12,053 |  |  |  | 10,868 |  |  |  | 10,868 |
Other |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 8,416 |  |  |  | 8,215 |  |  |  | 8,215 |
Exchange-traded and mutual funds: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Metals and mining |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 22,687 |  |  |  | 21,989 |  |  |  | 21,989 |
Agriculture |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 10,705 |  |  |  | 10,265 |  |  |  | 10,265 |
Energy |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 4,992 |  |  |  | 5,068 |  |  |  | 5,068 |
Indices |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 2,827 |  |  |  | 2,506 |  |  |  | 2,506 |
Non-hedging derivative asset (liability), net (2) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 69 |  |  |  | (21 | ) |  |  | (21 | )
Other investments (3) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 517 |  |  |  | 317 |  |  |  | 317 |
Total trading portfolio investments |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 96,571 |  |  |  | 89,346 |  |  |  | 89,346 |
Available for sale portfolio: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Fixed maturities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. government obligations and agencies |  |  | 105,265 |  |  |  | 104,532 |  |  |  | 104,532 |  |  |  | — |  |  |  | — |  |  |  | — |
Corporate bonds |  |  | 99,659 |  |  |  | 98,978 |  |  |  | 98,978 |  |  |  | — |  |  |  | — |  |  |  | — |
Mortgage-backed and asset-backed securities |  |  | 95,220 |  |  |  | 94,994 |  |  |  | 94,994 |  |  |  | — |  |  |  | — |  |  |  | — |
Equity securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Common stock |  |  | 19,126 |  |  |  | 20,057 |  |  |  | 20,057 |  |  |  | — |  |  |  | — |  |  |  | — |
Mutual funds |  |  | 50,891 |  |  |  | 50,805 |  |  |  | 50,805 |  |  |  | — |  |  |  | — |  |  |  | — |
Total available for sale investments |  |  | 370,161 |  |  |  | 369,366 |  |  |  | 369,366 |  |  |  | — |  |  |  | — |  |  |  | — |
Total investments |  | $ | 510,047 |  |  | $ | 509,252 |  |  | $ | 509,252 |  |  | $ | 476,972 |  |  | $ | 469,747 |  |  | $ | 469,747 |
(1) | Cash and cash equivalents include short-term debt securities consisting of direct obligations of the U.S. Treasury or money-market accounts that invest in or are collateralized by direct obligations of the U.S. Treasury and other U.S. government guaranteed securities.
(2) | Derivatives are included in Other assets and Other liabilities and accrued expenses in the Consolidated Balance Sheets.
(3) | Other investments represent physical metals held by the Company and are included in Other assets in the Consolidated Balance Sheets.
(4) | The cost for equity securities as of December 31, 2012 has been restated from the amounts reported on Form 10-K for the year ended December 31, 2012. The amounts previously reported represented the cost determined under a statutory basis of accounting. The restatement does not affect any amounts reported in the consolidated financial statements including the carrying amount of equity securities reported in the consolidated balance sheet as of December 31, 2012 and unrealized gains and losses reported in the consolidated statement of income for the year ended December 31, 2012.
Investment Income (Expense) Comprised Primarily of Interest and Dividends | The following table presents the components of net investment income, comprised primarily of interest and dividends, for the periods presented (in thousands):
|  | Three Months Ended September 30, |  |  | Nine Months Ended September 30, |
|  | 2013 |  |  | 2012 |  |  | 2013 |  |  | 2012 |
Cash and cash equivalents (1) |  | $ | 135 |  |  | $ | 243 |  |  | $ | 377 |  |  | $ | 483 |
Fixed maturities |  |  | 439 |  |  |  | 42 |  |  |  | 409 |  |  |  | 53 |
Equity securities |  |  | 363 |  |  |  | 95 |  |  |  | 729 |  |  |  | 313 |
Total investment income |  |  | 937 |  |  |  | 380 |  |  |  | 1,515 |  |  |  | 849 |
Less investment expenses |  |  | (555 | ) |  |  | (165 | ) |  |  | (985 | ) |  |  | (686 | )
Net investment (expense) income |  | $ | 382 |  |  | $ | 215 |  |  | $ | 530 |  |  | $ | 163 |
(1) | Includes interest earned on restricted cash and cash equivalents.
Effect of Trading Activities by Type of Instrument and by Line Item in Condensed Consolidated Statements of Income | The following table provides the effect of trading activities on the Company’s results of operations for the periods presented by type of instrument and by line item in the Condensed Consolidated Statements of Income (in thousands):
|  | Three Months Ended September 30, |  |  | Nine Months Ended September 30, |
|  | 2013 |  |  | 2012 |  |  | 2013 |  |  | 2012 |
Realized gains (losses) on investments: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Fixed maturities |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Equity securities |  |  | — |  |  |  | (3,299 | ) |  |  | (15,969 | ) |  |  | (12,728 | )
Derivatives (non-hedging instruments) (1) |  |  | — |  |  |  | 157 |  |  |  | (68 | ) |  |  | 432 |
Total realized gains (losses) on trading portfolio |  |  | — |  |  |  | (3,142 | ) |  |  | (16,037 | ) |  |  | (12,296 | )
Change in unrealized gains (losses) on investments: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Fixed maturities |  |  | — |  |  |  | 55 |  |  |  | 13 |  |  |  | 192 |
Equity securities |  |  | — |  |  |  | 8,119 |  |  |  | 7,758 |  |  |  | 11,291 |
Derivatives (non-hedging instruments) (1) |  |  | — |  |  |  | (55 | ) |  |  | 89 |  |  |  | 62 |
Other |  |  | — |  |  |  | (28 | ) |  |  | 14 |  |  |  | (55 | )
Total change in unrealized gains (losses) on trading portfolio |  |  | — |  |  |  | 8,091 |  |  |  | 7,874 |  |  |  | 11,490 |
Net gains (losses) recognized on trading portfolio |  | $ | — |  |  | $ | 4,949 |  |  | $ | (8,163 | ) |  | $ | (806 | )
(1) | This table provides the alternative quantitative disclosures permitted for derivatives that are not used as hedging instruments and are included in the trading portfolio.
Cost or Amortized Cost and Fair Value of Securities Available for Sale | The following table provides the cost or amortized cost and fair value of securities available for sale as of the period presented (in thousands):
|  | September 30, 2013 |
|  | Cost or Amortized Cost |  |  | Gross Unrealized Gains |  |  | Gross Unrealized Losses |  |  | Fair Value |
Fixed Maturities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
US government and agency obligations |  | $ | 105,265 |  |  | $ | 2 |  |  | $ | (735 | ) |  | $ | 104,532 |
Corporate bonds |  |  | 99,659 |  |  |  | 263 |  |  |  | (944 | ) |  |  | 98,978 |
Mortgage-backed and asset-backed securities |  |  | 95,220 |  |  |  | 125 |  |  |  | (351 | ) |  |  | 94,994 |
Equity Securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Common stock |  |  | 19,126 |  |  |  | 1,214 |  |  |  | (283 | ) |  |  | 20,057 |
Mutual funds |  |  | 50,891 |  |  |  | 986 |  |  |  | (1,072 | ) |  |  | 50,805 |
Total |  | $ | 370,161 |  |  | $ | 2,590 |  |  | $ | (3,385 | ) |  | $ | 369,366 |
Summarized Fair Value and Gross Unrealized Losses on Securities Available for Sale | The following table summarizes the fair value and gross unrealized losses on securities available for sale, aggregated by major investment category and length of time that individual securities have been in a continuous unrealized loss position as of September 30, 2013 (in thousands):
|  | Less than 12 months |  |  | 12 months or longer |
|  | Number of issues |  |  | Fair value |  |  | Unrealized losses |  |  | Number of issues |  |  | Fair value |  |  | Unrealized losses |
Fixed maturities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
US government and agency obligations |  |  | 7 |  |  | $ | 92,376 |  |  | $ | (735 | ) |  |  | — |  |  | $ | — |  |  | $ | — |
Corporate bonds |  |  | 68 |  |  |  | 81,640 |  |  |  | (944 | ) |  |  | — |  |  |  | — |  |  |  | — |
Mortgage-backed and asset-backed securities |  |  | 17 |  |  |  | 73,630 |  |  |  | (351 | ) |  |  | — |  |  |  | — |  |  |  | — |
Equity securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Common stock |  |  | 22 |  |  |  | 6,449 |  |  |  | (284 | ) |  |  | — |  |  |  | — |  |  |  | — |
Mutual funds |  |  | 5 |  |  |  | 20,430 |  |  |  | (1,071 | ) |  |  | — |  |  |  | — |  |  |  | — |
Total |  |  | 119 |  |  | $ | 274,525 |  |  | $ | (3,385 | ) |  |  | — |  |  | $ | — |  |  | $ | — |
Amortized Cost and Fair Value of Fixed Maturities Available for Sale by Contractual Maturity | The following table presents the amortized cost and fair value of fixed maturities available for sale by contractual maturity as of September 30, 2013 (in thousands):
|  | Fixed Maturities Securities Available for Sale |
|  | Amortized Cost |  |  | Fair Value |
Due in one year or less |  | $ | 5,807 |  |  | $ | 5,804 |
Due after one year through five years |  |  | 193,942 |  |  |  | 192,804 |
Due after five years through ten years |  |  | 5,175 |  |  |  | 4,902 |
Due after ten years |  |  | — |  |  |  | — |
Mortgage-backed and asset-backed securities |  |  | 95,220 |  |  |  | 94,994 |
Total |  | $ | 300,144 |  |  | $ | 298,504 |
Summary of Securities Available for Sale | The following table provides certain information related to securities available for sale during the periods presented (in thousands):
|  | Three Months Ended September 30, 2013 |  |  | Nine Months Ended September 30, 2013 |
Sales proceeds (fair value) |  | $ | 376 |  |  | $ | 390 |
Gross realized gains |  | $ | 56 |  |  | $ | 56 |
Gross realized losses |  | $ | — |  |  | $ | (1 | )
Other than temporary losses |  | $ | — |  |  | $ | — |

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