XML 45 R34.htm IDEA: XBRL DOCUMENT v3.10.0.1

Investments (Tables)

9 Months Ended

Sep. 30, 2018

Investments, Debt and Equity Securities [Abstract]

Schedule of Fixed Maturity and Equity Securities Available-for-Sale

The following tables provide information relating to investments in fixed maturity securities (in thousands):

September 30, 2018		Amortized Cost				Unrealized Gains				Unrealized Losses				Fair Value
Fixed maturity securities
U.S. Government and government agencies		$	28,491			$	225			$	(158	)		$	28,558
States, municipalities and political subdivisions		413,554				5,678				(2,842		)		416,390
Residential mortgage-backed securities		98,420				3,229				(972		)		100,677
Commercial mortgage-backed securities		60,735				144				(509		)		60,370
Asset-backed securities		287,497				1,078				(2,776		)		285,799
Corporate and other		2,096,940				20,277				(23,568		)		2,093,649
Total fixed maturity securities		$	2,985,637			$	30,631			$	(30,825	)		$	2,985,443

December 31, 2017		Amortized Cost				Unrealized Gains				Unrealized Losses				Fair Value
Fixed maturity securities
U.S. Government and government agencies		$	15,283			$	470			$	(31	)		$	15,722
States, municipalities and political subdivisions		377,549				18,953				(1,052		)		395,450
Foreign government		6,331				—				(333		)		5,998
Residential mortgage-backed securities		101,974				4,185				(1,264		)		104,895
Commercial mortgage-backed securities		30,152				269				(16		)		30,405
Asset-backed securities		145,479				2,610				(163		)		147,926
Corporate and other		589,803				51,891				(1,464		)		640,230
Total fixed maturity securities		$	1,266,571			$	78,378			$	(4,323	)		$	1,340,626

Schedule of Maturities of Fixed Maturity Securities Available-for-Sale

The amortized cost and fair value of fixed maturity securities available-for-sale as of September 30, 2018 are shown by contractual maturity in the table below (in thousands). Actual maturities can differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Asset and mortgage-backed securities are shown separately in the table below, as they are not due at a single maturity date:

		Amortized Cost				Fair  Value
Corporate, Municipal, U.S. Government and Other securities
Due in one year or less		$	23,754			$	23,612
Due after one year through five years		200,595				200,684
Due after five years through ten years		276,546				276,146
Due after ten years		2,038,090				2,038,155
Subtotal		2,538,985				2,538,597
Mortgage-backed securities		159,155				161,047
Asset-backed securities		287,497				285,799
Total		$	2,985,637			$	2,985,443

Schedule of Major Industry Types of Fixed Maturity Holdings

The tables below show the major industry types of the Company’s corporate and other fixed maturity securities (in thousands):

		September 30, 2018											December 31, 2017
		Amortized Cost				Fair Value				% of Total			Amortized Cost				Fair Value				% of Total
Finance, insurance, and real estate		$	385,333			$	384,306			18.4	%		$	191,234			$	203,735			31.8	%
Transportation, communication and other services		626,457				631,183				30.1	%		186,114				201,802				31.5	%
Manufacturing		715,322				708,375				33.8	%		100,942				111,391				17.4	%
Other		369,828				369,785				17.7	%		111,513				123,302				19.3	%
Total		$	2,096,940			$	2,093,649			100.0	%		$	589,803			$	640,230			100.0	%

Other than Temporary Impairment, Credit Losses Recognized in Earnings

Any remaining difference between the fair value and amortized cost is recognized in AOCI. The Company recorded the following (in thousands):

		Three Months Ended September 30,								Nine Months Ended September 30,
		2018				2017				2018				2017
Net realized and unrealized gains (losses) on investments		$	623			$	—			$	623			$	—
Other income (expenses), net		—				—				—				6,112
Total other-than-temporary impairments		$	623			$	—			$	623			$	6,112

Schedule of Unrealized Losses for Fixed Maturities and Equity Securities

The following table presents the total unrealized losses for the 738 and 126 fixed maturity securities held by the Company as of September 30, 2018 and December 31, 2017, respectively, where the estimated fair value had declined and remained below amortized cost by the indicated amount (in thousands):

		September 30, 2018							December 31, 2017
		Unrealized Losses				% of Total			Unrealized Losses				% of Total
Fixed maturity securities
Less than 20%		$	(30,817	)		100.0	%		$	(4,230	)		93.7	%
20% or more for less than six months		—				—	%		(174		)		3.9	%
20% or more for six months or greater		(8		)		—	%		(110		)		2.4	%
Total		$	(30,825	)		100.0	%		$	(4,514	)		100.0	%

Schedule of Estimated Fair Value and Gross Unrealized Loss

The following tables present the estimated fair values and gross unrealized losses for the 738 and 126 fixed maturity and equity securities held by the Company that have estimated fair values below amortized cost as of each of September 30, 2018 and December 31, 2017, respectively. The Company does not have any OTTI losses reported in AOCI. These investments are presented by investment category and the length of time the related fair value has remained below amortized cost (in thousands):

September 30, 2018		Less than 12 months								12 months of greater								Total
		Fair Value				Unrealized Losses				Fair Value				Unrealized Losses				Fair Value				Unrealized Losses
Fixed maturity securities
U.S. Government and government agencies		$	26,378			$	(158	)		$	—			$	—			$	26,378			$	(158	)
States, municipalities and political subdivisions		204,991				(2,583		)		7,051				(259		)		212,042				(2,842		)
Residential mortgage-backed securities		53,126				(850		)		2,260				(122		)		55,386				(972		)
Commercial mortgage-backed securities		40,963				(509		)		—				—				40,963				(509		)
Asset-backed securities		164,675				(2,637		)		2,250				(139		)		166,925				(2,776		)
Corporate and other		1,438,360				(20,842		)		25,854				(2,726		)		1,464,214				(23,568		)
Total fixed maturity securities		$	1,928,493			$	(27,579	)		$	37,415			$	(3,246	)		$	1,965,908			$	(30,825	)

December 31, 2017		Less than 12 months								12 months of greater								Total
		Fair Value				Unrealized Losses				Fair Value				Unrealized Losses				Fair Value				Unrealized Losses
Fixed maturity securities
U.S. Government and government agencies		$	5,044			$	(17	)		$	2,199			$	(14	)		$	7,243			$	(31	)
States, municipalities and political subdivisions		32,939				(834		)		10,757				(218		)		43,696				(1,052		)
Foreign government		—				—				5,999				(333		)		5,999				(333		)
Residential mortgage-backed securities		5,139				(546		)		16,150				(718		)		21,289				(1,264		)
Commercial mortgage-backed securities		5,053				(12		)		1,003				(4		)		6,056				(16		)
Asset-backed securities		19,771				(64		)		3,963				(99		)		23,734				(163		)
Corporate and other		18,478				(824		)		19,433				(640		)		37,911				(1,464		)
Total fixed maturity securities		$	86,424			$	(2,297	)		$	59,504			$	(2,026	)		$	145,928			$	(4,323	)

Schedule of New Accounting Pronouncements and Changes in Accounting Principles

The following tables provide information relating to investments in equity securities measured at fair value (in thousands):

		September 30, 2018				December 31, 2017
Equity securities
Common stocks		$	63,298			$	4,928
Perpetual preferred stocks		153,855				42,572
Total equity securities		$	217,153			$	47,500

Schedule of Other Invested Assets

Carrying values of other invested assets were as follows (in thousands):

		September 30, 2018												December 31, 2017
		Measurement Alternative				Equity Method				Fair Value				Cost Method				Equity Method				Fair Value
Common Equity		$	—			$	1,914			$	—			$	—			$	1,484			$	—
Preferred Equity		1,600				10,757				—				2,484				14,197				—
Derivatives		—				—				290				422				—				260
Other		—				56,404				—				—				66,572				—
Total		$	1,600			$	69,075			$	290			$	2,906			$	82,253			$	260

Summarized Information for Equity Method Investments

Summarized financial information for subsidiaries not consolidated as of and for the nine months ended September 30, 2018 and 2017 were as follows (information for two of the investees is reported on a one month lag, in thousands):

		2018				2017
Net revenue		$	220,694			$	369,336
Gross profit		$	71,365			$	109,543
Income (loss) from continuing operations		$	34,805			$	(10,118	)
Net income (loss)		$	27,799			$	(31,453	)
Current assets		$	312,252			$	317,786
Noncurrent assets		$	93,099			$	189,278
Current liabilities		$	210,510			$	197,855
Noncurrent liabilities		$	18,507			$	152,879

Net Investment Income

The major sources of net investment income were as follows (in thousands):

		Three Months Ended September 30,								Nine Months Ended September 30,
		2018				2017				2018				2017
Fixed maturity securities, available-for-sale at fair value		$	26,687			$	14,951			$	58,574			$	44,426
Equity securities		1,501				578				2,763				1,827
Mortgage loans		1,971				447				4,824				1,475
Policy loans		316				289				873				878
Other invested assets		1,410				68				2,007				75
Gross investment income		31,885				16,333				69,041				48,681
External investment expense		(175		)		(46		)		(265		)		(151		)
Net investment income		$	31,710			$	16,287			$	68,776			$	48,530

Net Realized Gain (Loss) on Investments

The major sources of net realized and unrealized gains and losses on investments were as follows (in thousands):

		Three Months Ended September 30,								Nine Months Ended September 30,
		2018				2017				2018				2017
Realized gains on fixed maturity securities		$	1,013			$	125			$	4,733			$	3,510
Realized losses on fixed maturity securities		(90		)		(42		)		(1,355		)		(959		)
Realized gains on equity securities		350				265				350				375
Realized losses on equity securities		—				—				(26		)		(31		)
Net unrealized gains (losses) on equity securities		(934		)		—				(1,125		)		—
Net unrealized gains (losses) on derivative instruments		(212		)		630				493				(41		)
Impairment loss		(623		)		—				(623		)		—
Net realized and unrealized gains (losses)		$	(496	)		$	978			$	2,447			$	2,854

X

- Definition

Schedule of Major Industry Types of Debt Securities Holdings [Table Text Block]

+ References

No definition available.

+ Details

Name:	hchc_ScheduleofMajorIndustryTypesofDebtSecuritiesHoldingsTableTextBlock
Namespace Prefix:	hchc_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of investment in debt security measured at fair value with change in fair value recognized in other comprehensive income (available-for-sale).

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-URI http://asc.fasb.org/topic&trid=2196928

+ Details

Name:	us-gaap_DebtSecuritiesAvailableForSaleTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of fair value amount of investment in debt security measured at fair value with change in fair value recognized in other comprehensive income (available-for-sale), in unrealized loss position.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-SubTopic 10
-Section 50
-Paragraph 6
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=82897076&loc=d3e27290-111563

+ Details

Name:	us-gaap_DebtSecuritiesAvailableForSaleUnrealizedLossPositionFairValueTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of equity method investments including, but not limited to, name of each investee or group of investments, percentage ownership, difference between recorded amount of an investment and the value of the underlying equity in the net assets, and summarized financial information.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 323
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=114001798&loc=d3e33918-111571

+ Details

Name:	us-gaap_EquityMethodInvestmentsTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of investment income, including, but not limited to, interest and dividend income and amortization of discount (premium) derived from debt and equity securities. Excludes realized and unrealized gain (loss) on investments.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03.9)
-URI http://asc.fasb.org/extlink&oid=115205541&loc=SL114868664-224227

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04.2)
-URI http://asc.fasb.org/extlink&oid=114873790&loc=SL114874131-224263

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03.7(a),(b))
-URI http://asc.fasb.org/extlink&oid=115205541&loc=SL114868664-224227

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03.8)
-URI http://asc.fasb.org/extlink&oid=115205541&loc=SL114868664-224227

+ Details

Name:	us-gaap_InvestmentIncomeTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of maturities of an entity's investments as well as any other information pertinent to the investments.

+ References

No definition available.

+ Details

Name:	us-gaap_InvestmentsClassifiedByContractualMaturityDateTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

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

Tabular disclosure of the amount of other than temporary impairment (OTTI) related to credit losses recognized in earnings including: (a) the beginning balance of the amount related to credit losses on debt securities held by the investor at the beginning of the period for which a portion of an OTTI was recognized in other comprehensive income; (b) additions for the amount related to the credit loss for which an OTTI was not previously recognized; (c) reductions for securities sold during the period (realized); (d) reductions for securities for which the amount previously recognized in other comprehensive income was recognized in earnings because the investor intends to sell the security or more likely than not will be required to sell the security before recovery of its amortized cost basis; (e) additional increases to the amount related to the credit loss for which an OTTI was previously recognized when the investor does not intend to sell the security and it is not more likely than not that the investor will be required to sell the security before recovery of its amortized cost basis; (f) reductions for increases in cash flows expected to be collected that are recognized over the remaining life of the security; and (g) the ending balance of the amount related to credit losses on debt securities held by the entity at the end of the period for which a portion of an OTTI was recognized in other comprehensive income.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=82897076&loc=d3e27340-111563

+ Details

Name:	us-gaap_OtherThanTemporaryImpairmentCreditLossesRecognizedInEarningsTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of realized gains and losses on investments reported in the statement of income.

+ References

No definition available.

+ Details

Name:	us-gaap_RealizedGainLossOnInvestmentsTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the reconciliation of available-for-sale securities from cost basis to fair value.

+ References

No definition available.

+ Details

Name:	us-gaap_ScheduleOfAvailableForSaleSecuritiesReconciliationTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the information required in the supplementary schedule applicable to management investment companies summarizing the listing of holdings of unaffiliated investments.

+ References

No definition available.

+ Details

Name:	us-gaap_SummaryOfInvestmentHoldingsScheduleOfInvestmentsTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of investment in debt security measured at fair value with change in fair value recognized in net income (trading) and investment in equity security measured at fair value with change in fair value recognized in net income (FV-NI).

+ References

No definition available.

+ Details

Name:	us-gaap_TradingSecuritiesAndCertainTradingAssetsTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration