• Filing Date: 2015-03-10
  • Form Type: 10-K
  • Description: Annual report
v2.4.1.9
Document and Entity Information (USD $)
12 Months Ended
Dec. 31, 2014
Mar. 02, 2015
Jun. 30, 2014
Document And Entity Information [Abstract]      
Document Type 10-K    
Amendment Flag false    
Document Period End Date Dec. 31, 2014    
Document Fiscal Year Focus 2014    
Document Fiscal Period Focus FY    
Trading Symbol HCI    
Entity Registrant Name HCI Group, Inc.    
Entity Central Index Key 0001400810    
Current Fiscal Year End Date --12-31    
Entity Well-known Seasoned Issuer No    
Entity Current Reporting Status Yes    
Entity Voluntary Filers No    
Entity Filer Category Accelerated Filer    
Entity Common Stock, Shares Outstanding   10,761,107dei_EntityCommonStockSharesOutstanding  
Entity Public Float     $ 379,970,934dei_EntityPublicFloat
v2.4.1.9
Consolidated Balance Sheets (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2014
Dec. 31, 2013
Assets    
Fixed-maturity securities, available for sale, at fair value (amortized cost: $96,163 and $110,738, respectively) $ 97,084us-gaap_AvailableForSaleSecuritiesDebtSecurities $ 112,151us-gaap_AvailableForSaleSecuritiesDebtSecurities
Equity securities, available for sale, at fair value (cost: $45,387 and $17,248, respectively) 45,550us-gaap_AvailableForSaleSecuritiesEquitySecurities 17,649us-gaap_AvailableForSaleSecuritiesEquitySecurities
Limited partnership investment, at equity 2,550hci_InvestmentsInLimitedPartnerships  
Investment in joint venture, at equity 4,477us-gaap_InvestmentsInAffiliatesSubsidiariesAssociatesAndJointVentures  
Real estate investments 19,138us-gaap_RealEstateInvestments 16,228us-gaap_RealEstateInvestments
Total investments 168,799us-gaap_Investments 146,028us-gaap_Investments
Cash and cash equivalents 314,716us-gaap_CashAndCashEquivalentsAtCarryingValue 293,398us-gaap_CashAndCashEquivalentsAtCarryingValue
Accrued interest and dividends receivable 1,059us-gaap_AccruedInvestmentIncomeReceivable 1,133us-gaap_AccruedInvestmentIncomeReceivable
Income taxes receivable 2,624us-gaap_IncomeTaxReceivable  
Premiums receivable 15,824us-gaap_PremiumsReceivableAtCarryingValue 14,674us-gaap_PremiumsReceivableAtCarryingValue
Prepaid reinsurance premiums 34,096us-gaap_PrepaidReinsurancePremiums 28,066us-gaap_PrepaidReinsurancePremiums
Deferred policy acquisition costs 15,014us-gaap_DeferredPolicyAcquisitionCosts 14,071us-gaap_DeferredPolicyAcquisitionCosts
Property and equipment, net 12,292us-gaap_PropertyPlantAndEquipmentNet 13,132us-gaap_PropertyPlantAndEquipmentNet
Deferred income taxes, net 2,499us-gaap_DeferredTaxAssetsNet  
Other assets 35,287us-gaap_OtherAssets 15,814us-gaap_OtherAssets
Total assets 602,210us-gaap_Assets 526,316us-gaap_Assets
Liabilities and Stockholders' Equity    
Losses and loss adjustment expenses 48,908us-gaap_LiabilityForClaimsAndClaimsAdjustmentExpensePropertyCasualtyLiability 43,686us-gaap_LiabilityForClaimsAndClaimsAdjustmentExpensePropertyCasualtyLiability
Unearned premiums 214,071us-gaap_UnearnedPremiums 171,907us-gaap_UnearnedPremiums
Advance premiums 4,380us-gaap_DepositContractsLiabilities 4,504us-gaap_DepositContractsLiabilities
Assumed reinsurance balances payable 218us-gaap_ReinsurancePayable 4,660us-gaap_ReinsurancePayable
Accrued expenses 4,826us-gaap_AccruedLiabilitiesCurrentAndNoncurrent 4,032us-gaap_AccruedLiabilitiesCurrentAndNoncurrent
Dividends payable   19us-gaap_DividendsPayableCurrentAndNoncurrent
Income taxes payable   543us-gaap_AccruedIncomeTaxes
Deferred income taxes, net   2,740us-gaap_DeferredTaxLiabilities
Long-term debt 129,539us-gaap_LongTermDebt 126,932us-gaap_LongTermDebt
Other liabilities 17,683us-gaap_OtherLiabilities 6,772us-gaap_OtherLiabilities
Total liabilities 419,625us-gaap_Liabilities 365,795us-gaap_Liabilities
Commitments and contingencies (Note 17)      
Stockholders' equity:    
Preferred stock      
Common stock (no par value, 40,000,000 shares authorized, 10,189,128 and 10,939,268 shares issued and outstanding in 2014 and 2013, respectively)      
Additional paid-in capital 20,465us-gaap_AdditionalPaidInCapital 48,966us-gaap_AdditionalPaidInCapital
Retained income 161,454us-gaap_RetainedEarningsAccumulatedDeficit 110,441us-gaap_RetainedEarningsAccumulatedDeficit
Accumulated other comprehensive income, net of taxes 666us-gaap_AccumulatedOtherComprehensiveIncomeLossNetOfTax 1,114us-gaap_AccumulatedOtherComprehensiveIncomeLossNetOfTax
Total stockholders' equity 182,585us-gaap_StockholdersEquity 160,521us-gaap_StockholdersEquity
Total liabilities and stockholders' equity 602,210us-gaap_LiabilitiesAndStockholdersEquity 526,316us-gaap_LiabilitiesAndStockholdersEquity
7% Series A Cumulative Convertible Preferred Stock [Member]    
Stockholders' equity:    
Preferred stock      
Series B Preferred Stock [Member]    
Stockholders' equity:    
Preferred stock      
v2.4.1.9
Consolidated Balance Sheets (Parenthetical) (USD $)
In Thousands, except Share data, unless otherwise specified
Dec. 31, 2014
Dec. 31, 2013
Available-for-sale Debt securities, Amortized cost $ 96,163us-gaap_AvailableForSaleDebtSecuritiesAmortizedCostBasis $ 110,738us-gaap_AvailableForSaleDebtSecuritiesAmortizedCostBasis
Available-for-sale Equity securities, Amortized cost $ 45,387us-gaap_AvailableForSaleEquitySecuritiesAmortizedCostBasis $ 17,248us-gaap_AvailableForSaleEquitySecuritiesAmortizedCostBasis
Preferred stock, no par value      
Preferred stock, authorized 18,100,000us-gaap_PreferredStockSharesAuthorized 18,100,000us-gaap_PreferredStockSharesAuthorized
Preferred stock, issued 0us-gaap_PreferredStockSharesIssued 0us-gaap_PreferredStockSharesIssued
Preferred stock, outstanding 0us-gaap_PreferredStockSharesOutstanding 0us-gaap_PreferredStockSharesOutstanding
Common stock, no par value      
Common stock, shares authorized 40,000,000us-gaap_CommonStockSharesAuthorized 40,000,000us-gaap_CommonStockSharesAuthorized
Common stock, shares issued 10,189,128us-gaap_CommonStockSharesIssued 10,939,268us-gaap_CommonStockSharesIssued
Common stock, outstanding 10,189,128us-gaap_CommonStockSharesOutstanding 10,939,268us-gaap_CommonStockSharesOutstanding
7% Series A Cumulative Convertible Preferred Stock [Member]    
Preferred stock, liquidation preference, per share $ 10.00us-gaap_PreferredStockLiquidationPreference
/ us-gaap_StatementClassOfStockAxis
= us-gaap_PreferredClassAMember
$ 10.00us-gaap_PreferredStockLiquidationPreference
/ us-gaap_StatementClassOfStockAxis
= us-gaap_PreferredClassAMember
Preferred stock, no par value      
Preferred stock, authorized 1,500,000us-gaap_PreferredStockSharesAuthorized
/ us-gaap_StatementClassOfStockAxis
= us-gaap_PreferredClassAMember
1,500,000us-gaap_PreferredStockSharesAuthorized
/ us-gaap_StatementClassOfStockAxis
= us-gaap_PreferredClassAMember
Preferred stock, issued 0us-gaap_PreferredStockSharesIssued
/ us-gaap_StatementClassOfStockAxis
= us-gaap_PreferredClassAMember
110,684us-gaap_PreferredStockSharesIssued
/ us-gaap_StatementClassOfStockAxis
= us-gaap_PreferredClassAMember
Preferred stock, outstanding 0us-gaap_PreferredStockSharesOutstanding
/ us-gaap_StatementClassOfStockAxis
= us-gaap_PreferredClassAMember
110,684us-gaap_PreferredStockSharesOutstanding
/ us-gaap_StatementClassOfStockAxis
= us-gaap_PreferredClassAMember
Series B Preferred Stock [Member]    
Preferred stock, no par value      
Preferred stock, authorized 400,000us-gaap_PreferredStockSharesAuthorized
/ us-gaap_StatementClassOfStockAxis
= us-gaap_SeriesBPreferredStockMember
400,000us-gaap_PreferredStockSharesAuthorized
/ us-gaap_StatementClassOfStockAxis
= us-gaap_SeriesBPreferredStockMember
Preferred stock, issued 0us-gaap_PreferredStockSharesIssued
/ us-gaap_StatementClassOfStockAxis
= us-gaap_SeriesBPreferredStockMember
0us-gaap_PreferredStockSharesIssued
/ us-gaap_StatementClassOfStockAxis
= us-gaap_SeriesBPreferredStockMember
Preferred stock, outstanding 0us-gaap_PreferredStockSharesOutstanding
/ us-gaap_StatementClassOfStockAxis
= us-gaap_SeriesBPreferredStockMember
0us-gaap_PreferredStockSharesOutstanding
/ us-gaap_StatementClassOfStockAxis
= us-gaap_SeriesBPreferredStockMember
v2.4.1.9
Consolidated Statements of Income (USD $)
In Thousands, except Per Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Revenue      
Gross premiums earned $ 365,488hci_GrossPremiumsEarnedPropertyAndCasualty $ 337,113hci_GrossPremiumsEarnedPropertyAndCasualty $ 233,607hci_GrossPremiumsEarnedPropertyAndCasualty
Premiums ceded (113,423)us-gaap_CededPremiumsEarned (102,865)us-gaap_CededPremiumsEarned (75,939)us-gaap_CededPremiumsEarned
Net premiums earned 252,065us-gaap_PremiumsEarnedNetPropertyAndCasualty 234,248us-gaap_PremiumsEarnedNetPropertyAndCasualty 157,668us-gaap_PremiumsEarnedNetPropertyAndCasualty
Net investment income 4,781us-gaap_NetInvestmentIncome 1,469us-gaap_NetInvestmentIncome 980us-gaap_NetInvestmentIncome
Policy fee income 2,820us-gaap_FeesAndCommissions 3,098us-gaap_FeesAndCommissions 2,538us-gaap_FeesAndCommissions
Net realized investment gains 4,735us-gaap_GainLossOnSaleOfInvestments 80us-gaap_GainLossOnSaleOfInvestments 276us-gaap_GainLossOnSaleOfInvestments
Gain on bargain purchase     179us-gaap_BusinessCombinationBargainPurchaseGainRecognizedAmount
Other 1,707us-gaap_OtherIncome 2,193us-gaap_OtherIncome 1,424us-gaap_OtherIncome
Total revenue 266,108us-gaap_Revenues 241,088us-gaap_Revenues 163,065us-gaap_Revenues
Expenses      
Losses and loss adjustment expenses 79,468us-gaap_IncurredClaimsPropertyCasualtyAndLiability 65,123us-gaap_IncurredClaimsPropertyCasualtyAndLiability 66,310us-gaap_IncurredClaimsPropertyCasualtyAndLiability
Policy acquisition and other underwriting expenses 37,952us-gaap_ExpenseRelatedToDistributionOrServicingAndUnderwritingFees 31,619us-gaap_ExpenseRelatedToDistributionOrServicingAndUnderwritingFees 25,930us-gaap_ExpenseRelatedToDistributionOrServicingAndUnderwritingFees
Salaries and wages 16,483us-gaap_SalariesWagesAndOfficersCompensation 14,714us-gaap_SalariesWagesAndOfficersCompensation 10,545us-gaap_SalariesWagesAndOfficersCompensation
Interest expense 10,453us-gaap_InterestExpenseDebt 3,607us-gaap_InterestExpenseDebt  
Goodwill impairment loss     161us-gaap_GoodwillImpairmentLoss
Other operating expenses 20,790us-gaap_OtherCostAndExpenseOperating 19,572us-gaap_OtherCostAndExpenseOperating 10,539us-gaap_OtherCostAndExpenseOperating
Total expenses 165,146us-gaap_OperatingExpenses 134,635us-gaap_OperatingExpenses 113,485us-gaap_OperatingExpenses
Income before income taxes 100,962us-gaap_IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest 106,453us-gaap_IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest 49,580us-gaap_IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest
Income tax expense 38,298us-gaap_IncomeTaxExpenseBenefit 40,891us-gaap_IncomeTaxExpenseBenefit 19,423us-gaap_IncomeTaxExpenseBenefit
Net income 62,664us-gaap_NetIncomeLoss 65,562us-gaap_NetIncomeLoss 30,157us-gaap_NetIncomeLoss
Preferred stock dividends 4us-gaap_PreferredStockDividendsAndOtherAdjustments (104)us-gaap_PreferredStockDividendsAndOtherAdjustments (322)us-gaap_PreferredStockDividendsAndOtherAdjustments
Income available to common stockholders $ 62,668us-gaap_NetIncomeLossAvailableToCommonStockholdersBasic $ 65,458us-gaap_NetIncomeLossAvailableToCommonStockholdersBasic $ 29,835us-gaap_NetIncomeLossAvailableToCommonStockholdersBasic
Basic earnings per common share $ 5.90us-gaap_EarningsPerShareBasic $ 5.82us-gaap_EarningsPerShareBasic $ 3.45us-gaap_EarningsPerShareBasic
Diluted earnings per common share $ 5.36us-gaap_EarningsPerShareDiluted $ 5.63us-gaap_EarningsPerShareDiluted $ 3.02us-gaap_EarningsPerShareDiluted
Dividends per common share $ 1.10us-gaap_CommonStockDividendsPerShareDeclared $ 0.95us-gaap_CommonStockDividendsPerShareDeclared $ 0.88us-gaap_CommonStockDividendsPerShareDeclared
v2.4.1.9
Consolidated Statements of Comprehensive Income (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Statement of Comprehensive Income [Abstract]      
Net income $ 62,664us-gaap_NetIncomeLoss $ 65,562us-gaap_NetIncomeLoss $ 30,157us-gaap_NetIncomeLoss
Change in unrealized (loss) gain on investments:      
Net unrealized gain (loss) arising during the period 3,870us-gaap_OtherComprehensiveIncomeUnrealizedHoldingGainLossOnSecuritiesArisingDuringPeriodBeforeTax (767)us-gaap_OtherComprehensiveIncomeUnrealizedHoldingGainLossOnSecuritiesArisingDuringPeriodBeforeTax 2,571us-gaap_OtherComprehensiveIncomeUnrealizedHoldingGainLossOnSecuritiesArisingDuringPeriodBeforeTax
Other-than-temporary impairment loss charged to investment income 107hci_OtherThanTemporaryImpairmentLossesEquitySecuritiesInvestmentsPortionInOtherComprehensiveIncomeLossBeforeTaxPortionAttributableToParent    
Call and repayment losses charged to investment income 28hci_OtherComprehensiveIncomeCallAndRepaymentLossesChargedToInvestmentIncome 24hci_OtherComprehensiveIncomeCallAndRepaymentLossesChargedToInvestmentIncome 3hci_OtherComprehensiveIncomeCallAndRepaymentLossesChargedToInvestmentIncome
Reclassification adjustment for net realized gain (4,735)us-gaap_OtherComprehensiveIncomeLossReclassificationAdjustmentFromAOCIForSaleOfSecuritiesBeforeTax (80)us-gaap_OtherComprehensiveIncomeLossReclassificationAdjustmentFromAOCIForSaleOfSecuritiesBeforeTax (276)us-gaap_OtherComprehensiveIncomeLossReclassificationAdjustmentFromAOCIForSaleOfSecuritiesBeforeTax
Net change in unrealized (loss) gain (730)hci_OtherComprehensiveIncomeLossAvailableForSaleSecuritiesAdjustmentIncludingOtherThanTemporaryImpairmentBeforeTax (823)hci_OtherComprehensiveIncomeLossAvailableForSaleSecuritiesAdjustmentIncludingOtherThanTemporaryImpairmentBeforeTax 2,298hci_OtherComprehensiveIncomeLossAvailableForSaleSecuritiesAdjustmentIncludingOtherThanTemporaryImpairmentBeforeTax
Deferred income taxes on above change 282hci_OtherComprehensiveIncomeLossAvailableForSaleSecuritiesIncludingOtherThanTemporaryImpairmentLossTax 317hci_OtherComprehensiveIncomeLossAvailableForSaleSecuritiesIncludingOtherThanTemporaryImpairmentLossTax (886)hci_OtherComprehensiveIncomeLossAvailableForSaleSecuritiesIncludingOtherThanTemporaryImpairmentLossTax
Total other comprehensive (loss) income, net of income taxes (448)us-gaap_OtherComprehensiveIncomeLossNetOfTax (506)us-gaap_OtherComprehensiveIncomeLossNetOfTax 1,412us-gaap_OtherComprehensiveIncomeLossNetOfTax
Comprehensive income $ 62,216us-gaap_ComprehensiveIncomeNetOfTax $ 65,056us-gaap_ComprehensiveIncomeNetOfTax $ 31,569us-gaap_ComprehensiveIncomeNetOfTax
v2.4.1.9
Consolidated Statements of Stockholders' Equity (USD $)
In Thousands, except Share data
Total
USD ($)
Share Repurchase Plan [Member]
USD ($)
Common Stock [Member]
Common Stock [Member]
Share Repurchase Plan [Member]
Additional Paid-In Capital [Member]
USD ($)
Additional Paid-In Capital [Member]
Share Repurchase Plan [Member]
USD ($)
Retained Income [Member]
USD ($)
Accumulated Other Comprehensive Income, Net of Tax [Member]
USD ($)
Series A Preferred Stock [Member]
Beginning Balance at Dec. 31, 2011 $ 63,830us-gaap_StockholdersEquity       $ 29,636us-gaap_StockholdersEquity
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_AdditionalPaidInCapitalMember
  $ 33,986us-gaap_StockholdersEquity
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_RetainedEarningsMember
$ 208us-gaap_StockholdersEquity
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_AccumulatedOtherComprehensiveIncomeMember
 
Beginning Balance, shares at Dec. 31, 2011     6,202,485us-gaap_SharesOutstanding
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_CommonStockMember
          1,247,700us-gaap_SharesOutstanding
/ us-gaap_StatementClassOfStockAxis
= us-gaap_SeriesAPreferredStockMember
Net income 30,157us-gaap_NetIncomeLoss           30,157us-gaap_NetIncomeLoss
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_RetainedEarningsMember
   
Total other comprehensive income, net of income taxes 1,412us-gaap_OtherComprehensiveIncomeLossNetOfTax             1,412us-gaap_OtherComprehensiveIncomeLossNetOfTax
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_AccumulatedOtherComprehensiveIncomeMember
 
Conversion of preferred stock to common stock, shares     1,006,518us-gaap_StockIssuedDuringPeriodSharesConversionOfConvertibleSecurities
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_CommonStockMember
          (1,006,518)us-gaap_StockIssuedDuringPeriodSharesConversionOfConvertibleSecurities
/ us-gaap_StatementClassOfStockAxis
= us-gaap_SeriesAPreferredStockMember
Issuance of restricted stock, shares     246,320us-gaap_StockIssuedDuringPeriodSharesRestrictedStockAwardGross
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_CommonStockMember
           
Exercise of common stock options, value 283us-gaap_StockIssuedDuringPeriodValueStockOptionsExercised       283us-gaap_StockIssuedDuringPeriodValueStockOptionsExercised
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_AdditionalPaidInCapitalMember
       
Exercise of common stock options, shares 340,000us-gaap_StockIssuedDuringPeriodSharesStockOptionsExercised   340,000us-gaap_StockIssuedDuringPeriodSharesStockOptionsExercised
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_CommonStockMember
           
Shares surrendered upon exercising common stock options, shares     (72,592)hci_CommonStockSharesSurrendered
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_CommonStockMember
           
Exercise of common stock warrants, value 11,869hci_StockIssuedDuringPeriodValueWarrantExercised       11,869hci_StockIssuedDuringPeriodValueWarrantExercised
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_AdditionalPaidInCapitalMember
       
Exercise of common stock warrants, shares     1,314,806hci_StockIssuedDuringPeriodSharesWarrantExercised
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_CommonStockMember
           
Common stock dividends (8,063)us-gaap_DividendsCommonStockCash           (8,063)us-gaap_DividendsCommonStockCash
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_RetainedEarningsMember
   
Preferred stock dividends (322)us-gaap_DividendsPreferredStock           (322)us-gaap_DividendsPreferredStock
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_RetainedEarningsMember
   
Tax benefits on stock-based compensation 1,161us-gaap_AdjustmentsToAdditionalPaidInCapitalTaxEffectFromShareBasedCompensation       1,161us-gaap_AdjustmentsToAdditionalPaidInCapitalTaxEffectFromShareBasedCompensation
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_AdditionalPaidInCapitalMember
       
Issuance of common stock (net of offering costs of $220) 20,082us-gaap_StockIssuedDuringPeriodValueNewIssues       20,082us-gaap_StockIssuedDuringPeriodValueNewIssues
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_AdditionalPaidInCapitalMember
       
Issuance of stock, shares     1,840,000us-gaap_StockIssuedDuringPeriodSharesNewIssues
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_CommonStockMember
           
Stock-based compensation 844us-gaap_AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue       844us-gaap_AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_AdditionalPaidInCapitalMember
       
Ending Balance at Dec. 31, 2012 121,253us-gaap_StockholdersEquity       63,875us-gaap_StockholdersEquity
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_AdditionalPaidInCapitalMember
  55,758us-gaap_StockholdersEquity
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_RetainedEarningsMember
1,620us-gaap_StockholdersEquity
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_AccumulatedOtherComprehensiveIncomeMember
 
Ending Balance, shares at Dec. 31, 2012     10,877,537us-gaap_SharesOutstanding
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_CommonStockMember
          241,182us-gaap_SharesOutstanding
/ us-gaap_StatementClassOfStockAxis
= us-gaap_SeriesAPreferredStockMember
Net income 65,562us-gaap_NetIncomeLoss           65,562us-gaap_NetIncomeLoss
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_RetainedEarningsMember
   
Total other comprehensive income, net of income taxes (506)us-gaap_OtherComprehensiveIncomeLossNetOfTax             (506)us-gaap_OtherComprehensiveIncomeLossNetOfTax
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_AccumulatedOtherComprehensiveIncomeMember
 
Conversion of preferred stock to common stock, shares     130,498us-gaap_StockIssuedDuringPeriodSharesConversionOfConvertibleSecurities
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_CommonStockMember
          (130,498)us-gaap_StockIssuedDuringPeriodSharesConversionOfConvertibleSecurities
/ us-gaap_StatementClassOfStockAxis
= us-gaap_SeriesAPreferredStockMember
Issuance of restricted stock, shares     612,000us-gaap_StockIssuedDuringPeriodSharesRestrictedStockAwardGross
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_CommonStockMember
           
Forfeiture of restricted stock, shares     (29,670)us-gaap_StockIssuedDuringPeriodSharesRestrictedStockAwardForfeited
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_CommonStockMember
           
Repurchase and retirement of common stock (963)us-gaap_StockRepurchasedAndRetiredDuringPeriodValue       (963)us-gaap_StockRepurchasedAndRetiredDuringPeriodValue
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_AdditionalPaidInCapitalMember
       
Repurchase and retirement of common stock, shares     (28,346)us-gaap_StockRepurchasedAndRetiredDuringPeriodShares
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_CommonStockMember
           
Repurchase of common stock under prepaid forward contract, value (29,923)hci_AdjustmentsToAdditionalPaidInCapitalStockRepurchaseForwardContractPrepaidAmount       (29,923)hci_AdjustmentsToAdditionalPaidInCapitalStockRepurchaseForwardContractPrepaidAmount
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_AdditionalPaidInCapitalMember
       
Repurchase of common stock under prepaid forward contract, shares     (622,751)hci_AdjustmentsToAdditionalPaidInCapitalStockRepurchaseUnderPrepaidForwardContract
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_CommonStockMember
           
Equity component on 3.875% convertible senior notes (net of offering costs of $557) 15,900hci_AdjustmentsToAdditionalPaidInCapitalEquityComponentOfConvertibleDebtNetOfOfferingCosts       15,900hci_AdjustmentsToAdditionalPaidInCapitalEquityComponentOfConvertibleDebtNetOfOfferingCosts
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_AdditionalPaidInCapitalMember
       
Deferred taxes on debt discount (6,348)hci_AdjustmentsToAdditionalPaidInCapitalTaxEffectFromConvertibleDebtWithConversionFeature       (6,348)hci_AdjustmentsToAdditionalPaidInCapitalTaxEffectFromConvertibleDebtWithConversionFeature
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_AdditionalPaidInCapitalMember
       
Common stock dividends (10,775)us-gaap_DividendsCommonStockCash           (10,775)us-gaap_DividendsCommonStockCash
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_RetainedEarningsMember
   
Preferred stock dividends (104)us-gaap_DividendsPreferredStock           (104)us-gaap_DividendsPreferredStock
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_RetainedEarningsMember
   
Tax benefits on stock-based compensation 1,060us-gaap_AdjustmentsToAdditionalPaidInCapitalTaxEffectFromShareBasedCompensation       1,060us-gaap_AdjustmentsToAdditionalPaidInCapitalTaxEffectFromShareBasedCompensation
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_AdditionalPaidInCapitalMember
       
Stock-based compensation 5,365us-gaap_AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue       5,365us-gaap_AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_AdditionalPaidInCapitalMember
       
Ending Balance at Dec. 31, 2013 160,521us-gaap_StockholdersEquity       48,966us-gaap_StockholdersEquity
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_AdditionalPaidInCapitalMember
  110,441us-gaap_StockholdersEquity
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_RetainedEarningsMember
1,114us-gaap_StockholdersEquity
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_AccumulatedOtherComprehensiveIncomeMember
 
Ending Balance, shares at Dec. 31, 2013     10,939,268us-gaap_SharesOutstanding
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_CommonStockMember
          110,684us-gaap_SharesOutstanding
/ us-gaap_StatementClassOfStockAxis
= us-gaap_SeriesAPreferredStockMember
Net income 62,664us-gaap_NetIncomeLoss           62,664us-gaap_NetIncomeLoss
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_RetainedEarningsMember
   
Total other comprehensive income, net of income taxes (448)us-gaap_OtherComprehensiveIncomeLossNetOfTax             (448)us-gaap_OtherComprehensiveIncomeLossNetOfTax
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_AccumulatedOtherComprehensiveIncomeMember
 
Conversion of preferred stock to common stock, shares     107,298us-gaap_StockIssuedDuringPeriodSharesConversionOfConvertibleSecurities
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_CommonStockMember
          (107,298)us-gaap_StockIssuedDuringPeriodSharesConversionOfConvertibleSecurities
/ us-gaap_StatementClassOfStockAxis
= us-gaap_SeriesAPreferredStockMember
Issuance of restricted stock, shares     108,720us-gaap_StockIssuedDuringPeriodSharesRestrictedStockAwardGross
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_CommonStockMember
           
Exercise of common stock options, value 125us-gaap_StockIssuedDuringPeriodValueStockOptionsExercised       125us-gaap_StockIssuedDuringPeriodValueStockOptionsExercised
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_AdditionalPaidInCapitalMember
       
Exercise of common stock options, shares 50,000us-gaap_StockIssuedDuringPeriodSharesStockOptionsExercised   50,000us-gaap_StockIssuedDuringPeriodSharesStockOptionsExercised
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_CommonStockMember
           
Forfeiture of restricted stock, shares     (10,840)us-gaap_StockIssuedDuringPeriodSharesRestrictedStockAwardForfeited
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_CommonStockMember
           
Repurchase and retirement of common stock (643)us-gaap_StockRepurchasedAndRetiredDuringPeriodValue (38,354)us-gaap_StockRepurchasedAndRetiredDuringPeriodValue
/ us-gaap_ShareRepurchaseProgramAxis
= hci_ShareRepurchasePlanMember
    (643)us-gaap_StockRepurchasedAndRetiredDuringPeriodValue
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_AdditionalPaidInCapitalMember
(38,354)us-gaap_StockRepurchasedAndRetiredDuringPeriodValue
/ us-gaap_ShareRepurchaseProgramAxis
= hci_ShareRepurchasePlanMember
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_AdditionalPaidInCapitalMember
     
Repurchase and retirement of common stock, shares   (990,701)us-gaap_StockRepurchasedAndRetiredDuringPeriodShares
/ us-gaap_ShareRepurchaseProgramAxis
= hci_ShareRepurchasePlanMember
(14,617)us-gaap_StockRepurchasedAndRetiredDuringPeriodShares
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_CommonStockMember
(990,701)us-gaap_StockRepurchasedAndRetiredDuringPeriodShares
/ us-gaap_ShareRepurchaseProgramAxis
= hci_ShareRepurchasePlanMember
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_CommonStockMember
         
Redemption of Series A preferred stock (34)us-gaap_StockRedeemedOrCalledDuringPeriodValue       (34)us-gaap_StockRedeemedOrCalledDuringPeriodValue
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_AdditionalPaidInCapitalMember
       
Redemption of Series A preferred stock, shares                 (3,386)us-gaap_StockRedeemedOrCalledDuringPeriodShares
/ us-gaap_StatementClassOfStockAxis
= us-gaap_SeriesAPreferredStockMember
Deferred taxes on debt discount 215hci_AdjustmentsToAdditionalPaidInCapitalTaxEffectFromConvertibleDebtWithConversionFeature       215hci_AdjustmentsToAdditionalPaidInCapitalTaxEffectFromConvertibleDebtWithConversionFeature
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_AdditionalPaidInCapitalMember
       
Common stock dividends (11,655)us-gaap_DividendsCommonStockCash           (11,655)us-gaap_DividendsCommonStockCash
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_RetainedEarningsMember
   
Derecognition of preferred stock dividends payable 4hci_DerecognitionOfPreferredStockDividendsPayable           4hci_DerecognitionOfPreferredStockDividendsPayable
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_RetainedEarningsMember
   
Tax benefits on stock-based compensation 2,080us-gaap_AdjustmentsToAdditionalPaidInCapitalTaxEffectFromShareBasedCompensation       2,080us-gaap_AdjustmentsToAdditionalPaidInCapitalTaxEffectFromShareBasedCompensation
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_AdditionalPaidInCapitalMember
       
Stock-based compensation 8,110us-gaap_AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue       8,110us-gaap_AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_AdditionalPaidInCapitalMember
       
Ending Balance at Dec. 31, 2014 $ 182,585us-gaap_StockholdersEquity       $ 20,465us-gaap_StockholdersEquity
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_AdditionalPaidInCapitalMember
  $ 161,454us-gaap_StockholdersEquity
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_RetainedEarningsMember
$ 666us-gaap_StockholdersEquity
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_AccumulatedOtherComprehensiveIncomeMember
 
Ending Balance, shares at Dec. 31, 2014     10,189,128us-gaap_SharesOutstanding
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_CommonStockMember
          0us-gaap_SharesOutstanding
/ us-gaap_StatementClassOfStockAxis
= us-gaap_SeriesAPreferredStockMember
v2.4.1.9
Consolidated Statements of Stockholders' Equity (Parenthetical) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Stated interest rate on convertible senior notes 3.875%us-gaap_DebtInstrumentInterestRateStatedPercentage  
Offering costs for convertible senior notes $ 557us-gaap_AdjustmentsToAdditionalPaidInCapitalConvertibleDebtWithConversionFeature  
Issuance of stock, offering costs   220us-gaap_AdjustmentsToAdditionalPaidInCapitalStockIssuedIssuanceCosts
Common Stock [Member]    
Issuance of stock, offering costs   220us-gaap_AdjustmentsToAdditionalPaidInCapitalStockIssuedIssuanceCosts
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_CommonStockMember
Additional Paid-In Capital [Member]    
Stated interest rate on convertible senior notes 3.875%us-gaap_DebtInstrumentInterestRateStatedPercentage
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_AdditionalPaidInCapitalMember
 
Offering costs for convertible senior notes 557us-gaap_AdjustmentsToAdditionalPaidInCapitalConvertibleDebtWithConversionFeature
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_AdditionalPaidInCapitalMember
 
Issuance of stock, offering costs   $ 220us-gaap_AdjustmentsToAdditionalPaidInCapitalStockIssuedIssuanceCosts
/ us-gaap_StatementEquityComponentsAxis
= us-gaap_AdditionalPaidInCapitalMember
v2.4.1.9
Consolidated Statements of Cash Flows (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Cash flows from operating activities:      
Net income $ 62,664us-gaap_NetIncomeLoss $ 65,562us-gaap_NetIncomeLoss $ 30,157us-gaap_NetIncomeLoss
Adjustments to reconcile net income to net cash provided by (used in) operating activities:      
Stock-based compensation 8,110us-gaap_ShareBasedCompensation 5,365us-gaap_ShareBasedCompensation 844us-gaap_ShareBasedCompensation
Net amortization of discounts and premiums on investments in fixed-maturity securities 782us-gaap_AccretionAmortizationOfDiscountsAndPremiumsInvestments 336us-gaap_AccretionAmortizationOfDiscountsAndPremiumsInvestments 279us-gaap_AccretionAmortizationOfDiscountsAndPremiumsInvestments
Depreciation and amortization 4,958us-gaap_DepreciationAmortizationAndAccretionNet 2,103us-gaap_DepreciationAmortizationAndAccretionNet 1,591us-gaap_DepreciationAmortizationAndAccretionNet
Deferred income tax (benefit) expense (4,742)us-gaap_DeferredIncomeTaxExpenseBenefit 557us-gaap_DeferredIncomeTaxExpenseBenefit (2,366)us-gaap_DeferredIncomeTaxExpenseBenefit
Net realized investment gains (4,735)us-gaap_GainLossOnSaleOfInvestments (80)us-gaap_GainLossOnSaleOfInvestments (276)us-gaap_GainLossOnSaleOfInvestments
Other-than-temporary impairment charge 107us-gaap_OtherThanTemporaryImpairmentLossesInvestmentsPortionRecognizedInEarningsNet    
Income from real estate investments (85)us-gaap_OtherNoncashIncomeExpense    
Loss from joint venture 23us-gaap_IncomeLossFromEquityMethodInvestments    
Loss from limited partnership interest 90hci_GainsLossesOnLimitedPartnershipsInterest    
Gain on bargain purchase     (179)us-gaap_BusinessCombinationBargainPurchaseGainRecognizedAmount
Goodwill impairment loss     161us-gaap_GoodwillImpairmentLoss
(Gain) loss on sale of real estate investment (1)us-gaap_GainsLossesOnSalesOfInvestmentRealEstate 20us-gaap_GainsLossesOnSalesOfInvestmentRealEstate  
Loss on disposal of real estate investment   6us-gaap_GainLossOnSaleOfOtherAssets  
Foreign currency remeasurement loss 29us-gaap_ForeignCurrencyTransactionGainLossBeforeTax 69us-gaap_ForeignCurrencyTransactionGainLossBeforeTax 23us-gaap_ForeignCurrencyTransactionGainLossBeforeTax
Changes in operating assets and liabilities:      
Premiums and reinsurance receivable (1,150)us-gaap_IncreaseDecreaseInPremiumsReceivable (4,032)us-gaap_IncreaseDecreaseInPremiumsReceivable 3,267us-gaap_IncreaseDecreaseInPremiumsReceivable
Advance premiums (124)us-gaap_IncreaseDecreaseInOtherPolicyholderFunds 475us-gaap_IncreaseDecreaseInOtherPolicyholderFunds 1,897us-gaap_IncreaseDecreaseInOtherPolicyholderFunds
Prepaid reinsurance premiums (6,030)us-gaap_IncreaseDecreaseInPrepaidReinsurancePremiums (18,954)us-gaap_IncreaseDecreaseInPrepaidReinsurancePremiums 5,057us-gaap_IncreaseDecreaseInPrepaidReinsurancePremiums
Accrued interest and dividends receivable 74us-gaap_IncreaseDecreaseInInterestAndDividendsReceivable (758)us-gaap_IncreaseDecreaseInInterestAndDividendsReceivable 33us-gaap_IncreaseDecreaseInInterestAndDividendsReceivable
Other assets (19,845)us-gaap_IncreaseDecreaseInOtherOperatingAssets (9,728)us-gaap_IncreaseDecreaseInOtherOperatingAssets (803)us-gaap_IncreaseDecreaseInOtherOperatingAssets
Assumed reinsurance balances payable (4,442)us-gaap_IncreaseDecreaseInReinsurancePayables 3,283us-gaap_IncreaseDecreaseInReinsurancePayables 1,377us-gaap_IncreaseDecreaseInReinsurancePayables
Deferred policy acquisition costs (943)us-gaap_IncreaseDecreaseInDeferredPolicyAcquisitionCosts (4,039)us-gaap_IncreaseDecreaseInDeferredPolicyAcquisitionCosts 2,289us-gaap_IncreaseDecreaseInDeferredPolicyAcquisitionCosts
Losses and loss adjustment expenses 5,222us-gaap_IncreaseDecreaseInPropertyAndCasualtyInsuranceLiabilities 2,518us-gaap_IncreaseDecreaseInPropertyAndCasualtyInsuranceLiabilities 13,744us-gaap_IncreaseDecreaseInPropertyAndCasualtyInsuranceLiabilities
Unearned premiums 42,164us-gaap_IncreaseDecreaseInUnearnedPremiums 17,658us-gaap_IncreaseDecreaseInUnearnedPremiums 45,572us-gaap_IncreaseDecreaseInUnearnedPremiums
Income taxes (3,167)us-gaap_IncreaseDecreaseInAccruedIncomeTaxesPayable (8,270)us-gaap_IncreaseDecreaseInAccruedIncomeTaxesPayable 3,857us-gaap_IncreaseDecreaseInAccruedIncomeTaxesPayable
Accrued expenses and other liabilities 9,770us-gaap_IncreaseDecreaseInOtherAccountsPayableAndAccruedLiabilities 3,381us-gaap_IncreaseDecreaseInOtherAccountsPayableAndAccruedLiabilities (258)us-gaap_IncreaseDecreaseInOtherAccountsPayableAndAccruedLiabilities
Net cash provided by operating activities 88,729us-gaap_NetCashProvidedByUsedInOperatingActivitiesContinuingOperations 55,472us-gaap_NetCashProvidedByUsedInOperatingActivitiesContinuingOperations 106,266us-gaap_NetCashProvidedByUsedInOperatingActivitiesContinuingOperations
Cash flows from investing activities:      
Cash consideration paid for acquired business, net of cash acquired     (8,157)us-gaap_PaymentsToAcquireBusinessesGross
Investment in real estate under acquisition, development, and construction arrangement (2,803)hci_InvestmentInRealEstateUnderAcquisitionDevelopmentAndConstructionArrangement    
Investment in limited partnership interest (2,640)us-gaap_PaymentsToAcquireLimitedPartnershipInterests    
Investment in joint venture (4,500)us-gaap_PaymentsToAcquireBusinessesAndInterestInAffiliates    
Purchase of property and equipment (453)us-gaap_PaymentsToAcquirePropertyPlantAndEquipment (3,433)us-gaap_PaymentsToAcquirePropertyPlantAndEquipment (1,196)us-gaap_PaymentsToAcquirePropertyPlantAndEquipment
Purchase of real estate investments (413)us-gaap_PaymentsToAcquireRealEstate (565)us-gaap_PaymentsToAcquireRealEstate (1,600)us-gaap_PaymentsToAcquireRealEstate
Purchase of fixed-maturity securities (83,365)us-gaap_PaymentsToAcquireAvailableForSaleSecuritiesDebt (82,907)us-gaap_PaymentsToAcquireAvailableForSaleSecuritiesDebt (10,128)us-gaap_PaymentsToAcquireAvailableForSaleSecuritiesDebt
Purchase of equity securities (44,257)us-gaap_PaymentsToAcquireAvailableForSaleSecuritiesEquity (11,308)us-gaap_PaymentsToAcquireAvailableForSaleSecuritiesEquity (6,410)us-gaap_PaymentsToAcquireAvailableForSaleSecuritiesEquity
Proceeds from sales of fixed-maturity securities 98,365us-gaap_ProceedsFromSaleOfAvailableForSaleSecuritiesDebt 1,749us-gaap_ProceedsFromSaleOfAvailableForSaleSecuritiesDebt 8,991us-gaap_ProceedsFromSaleOfAvailableForSaleSecuritiesDebt
Proceeds from calls, repayments and maturities of fixed-maturity securities 4,603us-gaap_ProceedsFromMaturitiesPrepaymentsAndCallsOfAvailableForSaleSecurities 3,607us-gaap_ProceedsFromMaturitiesPrepaymentsAndCallsOfAvailableForSaleSecurities 3,127us-gaap_ProceedsFromMaturitiesPrepaymentsAndCallsOfAvailableForSaleSecurities
Proceeds from sales of equity securities 16,810us-gaap_ProceedsFromSaleOfAvailableForSaleSecuritiesEquity 2,809us-gaap_ProceedsFromSaleOfAvailableForSaleSecuritiesEquity 1,735us-gaap_ProceedsFromSaleOfAvailableForSaleSecuritiesEquity
Proceeds from sales of property and equipment   1us-gaap_ProceedsFromSaleOfPropertyPlantAndEquipment  
Proceeds from sales of real estate investments 1us-gaap_ProceedsFromSaleOfOtherInvestments 7us-gaap_ProceedsFromSaleOfOtherInvestments  
Time deposits, net     12,427us-gaap_IncreaseDecreaseInTimeDeposits
Net cash used in investing activities (18,652)us-gaap_NetCashProvidedByUsedInInvestingActivitiesContinuingOperations (90,040)us-gaap_NetCashProvidedByUsedInInvestingActivitiesContinuingOperations (1,211)us-gaap_NetCashProvidedByUsedInInvestingActivitiesContinuingOperations
Cash flows from financing activities:      
Net proceeds from the issuance of common stock     20,082us-gaap_ProceedsFromIssuanceOfCommonStock
Proceeds from the exercise of common stock options 125us-gaap_ProceedsFromStockOptionsExercised   283us-gaap_ProceedsFromStockOptionsExercised
Proceeds from the exercise of common stock warrants     11,869us-gaap_ProceedsFromWarrantExercises
Proceeds from the issuance of long-term debt   143,250us-gaap_ProceedsFromIssuanceOfLongTermDebt  
Cash dividends paid (12,355)us-gaap_PaymentsOfDividends (10,902)us-gaap_PaymentsOfDividends (8,561)us-gaap_PaymentsOfDividends
Cash dividends received under share repurchase forward contract 685hci_CashDividendsRepaid    
Repurchases of common stock (643)us-gaap_PaymentsForRepurchaseOfCommonStock (30,886)us-gaap_PaymentsForRepurchaseOfCommonStock  
Repurchases of common stock under share repurchase plan (38,354)hci_PaymentsForRepurchaseOfCommonStockUnderShareRepurchasePlan    
Redemption of Series A preferred stock (34)us-gaap_PaymentsForRepurchaseOfConvertiblePreferredStock    
Debt issuance costs (234)us-gaap_PaymentsOfDebtIssuanceCosts (4,770)us-gaap_PaymentsOfDebtIssuanceCosts (35)us-gaap_PaymentsOfDebtIssuanceCosts
Tax benefits on stock-based compensation 2,080us-gaap_ExcessTaxBenefitFromShareBasedCompensationFinancingActivities 1,060us-gaap_ExcessTaxBenefitFromShareBasedCompensationFinancingActivities 1,161us-gaap_ExcessTaxBenefitFromShareBasedCompensationFinancingActivities
Net cash (used) provided by financing activities (48,730)us-gaap_NetCashProvidedByUsedInFinancingActivitiesContinuingOperations 97,752us-gaap_NetCashProvidedByUsedInFinancingActivitiesContinuingOperations 24,799us-gaap_NetCashProvidedByUsedInFinancingActivitiesContinuingOperations
Effect of exchange rate changes on cash (29)us-gaap_EffectOfExchangeRateOnCashAndCashEquivalents   5us-gaap_EffectOfExchangeRateOnCashAndCashEquivalents
Net (decrease) increase in cash and cash equivalents 21,318us-gaap_CashAndCashEquivalentsPeriodIncreaseDecrease 63,184us-gaap_CashAndCashEquivalentsPeriodIncreaseDecrease 129,859us-gaap_CashAndCashEquivalentsPeriodIncreaseDecrease
Cash and cash equivalents at beginning of year 293,398us-gaap_CashAndCashEquivalentsAtCarryingValue 230,214us-gaap_CashAndCashEquivalentsAtCarryingValue 100,355us-gaap_CashAndCashEquivalentsAtCarryingValue
Cash and cash equivalents at end of year 314,716us-gaap_CashAndCashEquivalentsAtCarryingValue 293,398us-gaap_CashAndCashEquivalentsAtCarryingValue 230,214us-gaap_CashAndCashEquivalentsAtCarryingValue
Supplemental disclosure of cash flow information:      
Cash paid for income taxes 43,902us-gaap_IncomeTaxesPaidNet 47,435us-gaap_IncomeTaxesPaidNet 16,710us-gaap_IncomeTaxesPaidNet
Cash paid for interest 6,258us-gaap_InterestPaidNet 2,531us-gaap_InterestPaidNet  
Non-cash investing and financing activities:      
Unrealized (loss) gain on investments in available-for-sale securities, net of tax (448)us-gaap_AvailableForSaleSecuritiesChangeInNetUnrealizedHoldingGainLossNetOfTax (506)us-gaap_AvailableForSaleSecuritiesChangeInNetUnrealizedHoldingGainLossNetOfTax 1,412us-gaap_AvailableForSaleSecuritiesChangeInNetUnrealizedHoldingGainLossNetOfTax
Series A Preferred Stock [Member]      
Non-cash investing and financing activities:      
Conversion of Series A preferred stock to common stock $ 972us-gaap_ConversionOfStockAmountConverted1
/ us-gaap_StatementClassOfStockAxis
= us-gaap_SeriesAPreferredStockMember
$ 1,170us-gaap_ConversionOfStockAmountConverted1
/ us-gaap_StatementClassOfStockAxis
= us-gaap_SeriesAPreferredStockMember
$ 9,121us-gaap_ConversionOfStockAmountConverted1
/ us-gaap_StatementClassOfStockAxis
= us-gaap_SeriesAPreferredStockMember
v2.4.1.9
Nature of Operations
12 Months Ended
Dec. 31, 2014
Accounting Policies [Abstract]  
Nature of Operations

Note 1 — Nature of Operations

HCI Group, Inc. together with the insurance and non-insurance subsidiaries (“HCI” or the “Company”), is primarily engaged in the property and casualty insurance business through Homeowners Choice Property & Casualty Insurance Company, Inc. (“HCPCI”), its principal operating subsidiary. HCPCI is authorized to underwrite various homeowners’ property and casualty insurance products in the state of Florida. HCPCI’s operations are supported by the following HCI subsidiaries:

 

    Homeowners Choice Managers, Inc. – acts as managing general agent and provides marketing, underwriting, claims settlement, accounting and financial services to HCPCI;

 

    Southern Administration, Inc. – provides policy administration services to HCPCI; and

 

    Claddaugh Casualty Insurance Company, Ltd. – participates in the reinsurance program to HCPCI.

Homeowners Choice Assurance Company, Inc. was organized and was approved and licensed by the Alabama Department of Insurance in August 2013. During 2014, HCPCI was also approved to underwrite excess and surplus lines insurance products in Maryland, New Jersey, South Carolina, and Virginia.

In addition, HCI has various subsidiaries primarily engaged in the businesses of owning and leasing real estate, operating marina facilities and one restaurant, and developing software.

The Company reports its operations under one business segment.

The Company obtained a majority of its policies through participation in a “take-out program” with Citizens Property Insurance Corporation (“Citizens”), a Florida state supported insurer. Policies were obtained in eleven separate assumption transactions with Citizens that took place from July 2007 through December 2014. The Company is required to offer renewals on the policies acquired for a period of three years subsequent to the initial expiration of the assumed policies. During the first full year after assumption, such renewals are required to have rates that are equivalent to or less than the rates charged by Citizens. The Company’s premium revenue since inception comes from these assumptions and one additional assumption from HomeWise Insurance Company (“HomeWise”) in November 2011 through which the Company acquired the Florida policies of HomeWise.

v2.4.1.9
Summary of Significant Accounting Policies
12 Months Ended
Dec. 31, 2014
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies

Note 2 — Summary of Significant Accounting Policies

Basis of Presentation. The accompanying financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”).

Principles of Consolidation. The accompanying consolidated financial statements include the accounts of HCI and its majority-owned and controlled subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. In addition, the Company evaluates its relationships or investments for consolidation pursuant to authoritative accounting guidance related to the consolidation of variable interest entities (“VIE”) under the Variable Interest Model prescribed by the Financial Accounting Standards Board (“FASB”). A VIE is consolidated when the Company has the power to direct activities that most significantly impact the economic performance of the VIE and has the obligation to absorb losses or the right to receive benefits from the VIE that could potentially be significant to the VIE. When a VIE is not consolidated, the Company uses the equity method to account for the investment. Under this method, the carrying value is generally the Company’s share of the net asset value of the unconsolidated entity, and changes in the Company’s share of the net asset value are recorded in net investment income.

Use of Estimates. The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities as well as the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results may differ materially from these estimates. Material estimates that are particularly susceptible to significant change in the near term are primarily related to losses and loss adjustment expenses, reinsurance with retrospective provisions, deferred income taxes, and stock-based compensation expense.

Cash and Cash Equivalents. The Company considers all short-term highly liquid investments with original maturities of less than three months to be cash and cash equivalents. At December 31, 2014 and 2013, cash and cash equivalents consist of cash on deposit with financial institutions and securities brokerage firms and also includes a $300 statutory deposit held by the State of Florida for the benefit of all policyholders.

Investments in Available-for-Sale Securities. Investments consist of fixed-maturity and equity securities. Fixed-maturity securities include debt securities and redeemable preferred stock. Securities may be classified as either trading, held to maturity or available-for-sale. The Company’s available-for-sale securities are carried at fair value. Temporary changes in the fair value of available-for-sale securities are excluded from net investment income and reported in stockholders’ equity as a component of accumulated other comprehensive income, net of deferred income taxes. Realized investment gains and losses from sales are recorded on the trade date and are determined using the first-in first-out (FIFO) method. Investment income is recognized as earned and discounts or premiums arising from the purchase of debt securities are recognized in investment income using the interest method over the estimated remaining term of the security. Gains and losses from call redemptions and repayments are charged to investment income.

 

The Company reviews all securities for other-than-temporary impairment on a quarterly basis and more frequently when economic or market conditions warrant such review. When the fair value of any investment is lower than its cost, an assessment is made to determine whether the decline is temporary or other-than-temporary. If the decline is determined to be other-than-temporary, the investment is written down to fair value and an impairment charge is recognized in income in the period in which the Company makes such determination. For a debt security that the Company does not intend to sell nor is it more likely than not that the Company will be required to sell before recovery of its amortized cost, only the credit loss component of the impairment is recognized in income, while the impairment related to all other factors is recognized in other comprehensive income. The Company considers various factors in determining whether an individual security is other-than-temporarily impaired (see Note 4 — “Investments”).

Limited Partnership Investment. The Company has interest in a limited partnership that is not registered under the United Stated Securities Act of 1933, as amended, the securities laws of any state or the securities laws of any other jurisdictions. The partnership interest cannot be resold in the public market and any withdrawal is subject to the terms and conditions of the partnership agreement. The Company has no influence over partnership operating and financial policies. The Company did not elect the fair value option and, therefore, uses the equity method to account for this investment (see Note 4 — “Investments”). The Company will generally recognize its share of the limited partnership’s earnings on a three- to six-month lag.

Investment in Joint Venture. The Company has a 90% equity interest in a joint venture that was organized to acquire and develop land on which the joint venture partners plan to construct a retail shopping center (see Note 4 — “Investments”) for lease or for sale. The joint venture was determined to be a variable interest entity as it lacks sufficient equity to finance its activities without additional subordinated financial support. Despite having a majority equity interest, the Company does not have a controlling financial interest and, accordingly, is not required to consolidate the joint venture as its primary beneficiary.

In addition, the joint venture agreement contains an embedded purchase option the Company can exercise to purchase the entire interest of the other party to the joint venture after the expiration of a restricted period. The Company determined the embedded purchase option is not required to be bifurcated and fair value accounting at each reporting date is not applicable. Due to the lack of a controlling financial interest and until the embedded purchase option becomes exercisable, the Company uses the equity method rather than consolidation to account for its investment in the joint venture.

Real Estate Investments. Real estate investments consist of an acquisition, development and construction loan agreement (“ADC Arrangement”) and also real estate and the related assets purchased for investment purposes (see Note 4 — “Investments”).

Under the ADC Arrangement, the Company provides financing to a property developer for the acquisition, development, and construction of a retail shopping center. The Company also expects to participate in the residual profit resulting from the ultimate sale or other use of the property. Classification and accounting for the ADC Arrangement as a loan, an investment in real estate, or a joint venture is determined by the Company’s evaluation of the characteristics and the risks and rewards of the ADC Arrangement. If the Company expects to receive more than 50% of the residual profit from the ADC Arrangement and it has characteristics similar to a real estate investment, the costs of the real estate project will be capitalized and interest will be recognized in net investment income.

In addition, the Company considers any rights or features embedded in the ADC Arrangement that may require bifurcation and derivative accounting. Due to its participation in the expected residual profit, which is deemed a variable interest, the Company evaluates its involvements in the design and essential activities of the entity to which the Company provides financing for possible consolidation as the primary beneficiary under the Variable Interest Model.

Any subsequent changes in terms, rights or the developer’s equity interest that may result in a reclassification or a change in the accounting treatment of the ADC Arrangement will be evaluated. The Company will continually assess the collectability of principal, accrued interest and fees.

Real estate and the related depreciable assets are carried at cost, net of accumulated depreciation, which is included in net investment income and allocated over the estimated useful life of the asset using the straight-line method of depreciation. Real estate is evaluated for impairment when events or circumstances indicate the carrying value of the real estate may not be recoverable.

Deferred policy acquisition costs. Deferred policy acquisition costs (“DAC”) primarily represent commissions paid to outside agents at the time of collection of the policy premium and premium taxes and are amortized over the life of the related policy in relation to the amount of gross premiums earned.

The method followed in computing DAC limits the amount of such deferred costs to their estimated realizable value, which gives effect to the gross premium earned, related investment income, unpaid losses and LAE and certain other costs expected to be incurred as the premium is earned.

DAC is reviewed to determine if it is recoverable from future income, including investment income. If such costs are determined to be unrecoverable, they are expensed at the time of determination. The amount of DAC considered recoverable could be reduced in the near term if the estimates of total revenues discussed above are reduced or permanently impaired as a result of the disposition of a line of business. The amount of amortization of DAC could be revised in the near term if any of the estimates discussed above are revised.

Property and Equipment. Property and equipment is stated at cost less accumulated depreciation and amortization, which is included in other operating expenses. Depreciation is calculated on a straight-line basis over the estimated useful lives as follows: building 39 years; computer hardware and software 3 years; office and furniture equipment 3 to 7 years. Leasehold improvements are amortized over the shorter of the lease term or the asset’s useful life. Expenditures for improvements are capitalized to the property accounts. Replacements and maintenance and repairs that do not improve or extend the life of the respective assets are expensed as incurred.

Impairment of Long-Lived Assets. Long-lived assets, such as property and equipment, are reviewed for impairment annually or whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. The Company assesses the recoverability of long-lived assets by determining whether the assets can be recovered from undiscounted future cash flows. Recoverability of long-lived assets is dependent upon, among other things, the Company’s ability to maintain profitability, so as to be able to meet its obligations when they become due. In the opinion of management, based upon current information and projections, long-lived assets will be recovered over the period of benefit.

Long-Term Debt. Long-term debt is generally classified as a liability and carried at amortized cost, net of any discount. At issuance, a debt instrument with embedded features such as conversion and redemption options is evaluated to determine whether bifurcation and derivative accounting is applicable. If such instrument is not subject to derivative accounting, it is further evaluated to determine if the Company is required to separately account for the liability and equity components.

To determine the carrying values of the liability and equity components at issuance, the Company measures the fair value of a similar liability, including any embedded features other than the conversion option, and assigns such value to the liability component. The liability component’s fair value is then subtracted from the initial proceeds to determine the carrying value of the debt instrument’s equity component, which is included in additional paid-in capital.

Any embedded feature other than the conversion option is evaluated at issuance to determine if it is probable that such embedded feature will be exercised. If the Company concludes that the exercisability of that embedded feature is not probable, the embedded feature is considered to be nonsubstantive and would not impact the initial measurement and expected life of the debt instrument’s liability component.

Transaction costs related to issuing a debt instrument that embodies both liability and equity components are allocated to the liability and equity components in proportion to the allocation of the proceeds and accounted for as debt issuance costs and equity issuance costs, respectively. Debt issuance costs are recognized in other assets. Both debt discount and deferred debt issuance costs are amortized to interest expense over the expected life of the debt instrument using the effective interest method. Equity issuance costs are a reduction to the proceeds allocated to the equity component.

Prepaid Share Repurchase Forward Contract. A prepaid share repurchase forward contract is generally a contract that allows the Company to buy from the counterparty a specified number of common shares at a specific time at a given forward price. The Company entered into such a contract in December 2013 and evaluated the characteristics of the forward contract to determine whether it met the definition of a derivative financial instrument pursuant to U.S. GAAP. The Company determined the forward contract is an equity contract on the Company’s common shares requiring physical settlement in common shares of the Company. As such, the transaction is recognized as a component of stockholders’ equity with a charge to additional paid-in capital equal to the prepayment amount, which represents the cash paid to the counterparty. There will be no recognition in earnings for changes in fair value in subsequent periods.

Losses and Loss Adjustment Expenses. Reserves for losses and loss adjustment expenses (“LAE”) are determined by establishing liabilities in amounts estimated to cover incurred losses and LAE. Such reserves are determined based on the assessment of claims reported and the development of pending claims. These reserves are based on individual case estimates for the reported losses and LAE and estimates of such amounts that are incurred but not reported. Changes in the estimated liability are charged or credited to income as the losses and LAE are settled.

 

The estimates of unpaid losses and LAE are subject to trends in claim severity and frequency and are continually reviewed. As part of the process, the Company reviews historical data and considers various factors, including known and anticipated regulatory and legal developments, changes in social attitudes, inflation and economic conditions. As experience develops and other data becomes available, these estimates are revised, as required, resulting in increases or decreases to the existing unpaid losses and LAE. Adjustments are reflected in the results of operations in the period in which they are made and the liabilities may deviate substantially from prior estimates.

Advance Premiums. Premium payments received prior to the policy effective date are recorded as advance premiums. Once the policy is in force, the premiums are recorded as described under “Premium Revenue” below.

Reinsurance. In the normal course of business, the Company seeks to reduce the loss that may arise from catastrophes or other events that cause unfavorable underwriting results by reinsuring certain levels of risk in various areas of exposure with other insurance enterprises or reinsurers. The Company contracts with a number of reinsurers to secure its annual reinsurance coverage, which generally becomes effective June 1st each year. The Company purchases reinsurance each year taking into consideration probable maximum losses and reinsurance market conditions. Amounts recoverable from reinsurers would be estimated in a manner consistent with the applicable reinsurance contract(s). Reinsurance premiums and reserves related to reinsured business are accounted for on a basis consistent with those used in accounting for the original policies issued and the terms of the reinsurance contracts. Premiums ceded to other companies have been reported as a reduction of gross premiums earned. Prepaid reinsurance premiums represent the unexpired portion of premiums ceded to reinsurers.

Certain of the Company’s current contracts contain retrospective provisions including terms and conditions that adjust premiums, increase the amount of future coverage, or result in profit commissions based on the loss experience under the contracts. In such cases, a with-and-without method is used to estimate the asset or liability amount to be recognized at each reporting date. The amount of the estimate is the difference between the net contract costs before and after the loss experience under the contract. Estimates related to premium adjustments, profit commissions and coverage changes are recognized in ceded premiums earned. These estimates are reviewed monthly based on the loss experience to date and as adjustments become necessary. Such adjustments are reflected in the Company’s current operations and recorded in other assets until received upon the expiration of the contracts.

Premium Revenue. Premium revenue is earned on a daily pro-rata basis over the term of the policies and is included in gross premiums earned. Unearned premiums represent the portion of the premium related to the unexpired policy term. The Company reviews its policy detail and establishes an allowance for any amount outstanding for more than 90 days. As of December 31, 2014 and 2013, there was no allowance required.

 

Policy Fees. Policy fees represent nonrefundable fees for insurance coverage, which are intended to reimburse a portion of the costs incurred to underwrite the policy. Effective October 1, 2013 on a prospective basis, policy fees are recognized ratably over the policy coverage period. Prior to October 1, 2013, the fees were recognized in income when the policy was written on the basis that the revenues were appropriately matched to the Company’s incremental direct costs related to policy underwriting.

Florida Insurance Guaranty Association Assessments. The Company may be assessed by the state guaranty association. The assessments are intended to be used for the payment of covered claims of insolvent insurance entities. The assessments are generally based on a percentage of premiums written during or following the year of insolvency. Liabilities are recognized when the assessments are probable to be imposed on the premiums on which they are expected to be based and the amounts can be reasonably estimated. The Company is permitted by Florida statutes to recover the entire amount of assessments from in-force and future policyholders through policy surcharges. U.S. GAAP provides that the Company should record an asset based on the amount of written or obligated-to-write premiums and limited to the amounts recoverable over the life of the in-force policies.

Foreign Currency. The functional currency of the Company’s Indian subsidiary is the U.S. dollar. As such, the monetary assets and liabilities of this subsidiary are remeasured into U.S. dollars at the exchange rate in effect on the balance sheet date. Non-monetary assets and liabilities are remeasured using historical rates. Expenses recorded in the local currency are remeasured at the prevailing exchange rate. Exchange gains and losses resulting from these remeasurements are included in other operating expenses.

Income Taxes. The Company files consolidated federal and state income tax returns and allocates taxes among its wholly owned subsidiaries in accordance with a written tax-allocation agreement.

The Company accounts for income taxes in accordance with U.S. GAAP, resulting in two components of income tax expense: current and deferred. Current income tax expense reflects taxes to be paid or refunded for the current period by applying the provisions of the enacted tax law to the taxable income or excess of deductions over revenues. The Company determines deferred income taxes using the liability (or balance sheet) method. Under this method, the net deferred tax asset or liability is based on the tax effects of the differences between the book and tax bases of assets and liabilities, and enacted changes in tax rates and laws are recognized in the period in which they occur.

Deferred income tax expense results from changes in deferred tax assets and liabilities between periods. Deferred tax assets are recognized if it is more likely than not, based on the technical merits, that the tax position will be realized or sustained upon examination. The term “more likely than not” means a likelihood of more than fifty percent; the terms “examined” and “upon examination” also include resolution of the related appeals or litigation processes, if any. A tax position that meets the more-likely-than-not recognition threshold is initially and subsequently measured as the largest amount of tax benefit that has a greater than fifty percent likelihood of being realized upon settlement with a taxing authority that has full knowledge of all relevant information. The determination of whether or not a tax position has met the more-likely-than-not recognition threshold considers the facts, circumstances, and information available at the reporting date and is subject to management’s judgment. Deferred tax assets are reduced by a valuation allowance if, based on the weight of evidence available, it is more likely than not that some portion or all of a deferred tax asset will not be realized. As of December 31, 2014, management is not aware of any uncertain tax positions that would have a material effect on the Company’s consolidated financial statements.

Fair Value of Financial Instruments. The carrying amounts for the Company’s cash and cash equivalents approximate their fair values at December 31, 2014 and 2013. Fair values for securities are based on the framework for measuring fair value established by U.S. GAAP (see Note 5 — “Fair Value Measurements”).

Stock-Based Compensation. The Company accounts for stock-based compensation under the fair value recognition provisions of U.S. GAAP which requires the measurement and recognition of compensation for all stock-based awards made to employees and directors including stock options and restricted stock issuances based on estimated fair values. In accordance with U.S. GAAP, the fair value of stock-based awards is generally recognized as compensation expense over the requisite service period, which is defined as the period during which an employee is required to provide service in exchange for an award. The Company uses a straight-line attribution method for all grants that include only a service condition. The Company’s restricted stock awards include service, market and performance conditions. As a result, restricted stock grants with market condition are expensed over the derived service period for each separately vesting tranche. For awards with performance conditions, the Company recognizes compensation expense over the requisite service period when it is probable that the performance condition will be achieved. Compensation expense related to all awards is included in other operating expense.

Basic and diluted earnings per common share. Basic earnings per common share is computed by dividing net income attributable to common stockholders by the weighted-average number of common shares outstanding for the period. U.S. GAAP requires the inclusion of restricted stock as participating securities since holders of the Company’s restricted stock have the right to share in dividends, if declared, equally with common stockholders. During periods of net income, participating securities are allocated a proportional share of net income determined by dividing total weighted-average participating securities by the sum of total weighted-average common shares and participating securities (the “two-class method”). Diluted earnings per common share reflect the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted as well as participating equities. See Note 13 — “Earnings Per Share” for potentially dilutive securities at December 31, 2014, 2013 and 2012.

Reclassifications. Certain reclassifications of prior year amounts have been made to conform to the current year presentation.

v2.4.1.9
Recent Accounting Pronouncements
12 Months Ended
Dec. 31, 2014
Accounting Changes and Error Corrections [Abstract]  
Recent Accounting Pronouncements

Note 3 — Recent Accounting Pronouncements

Accounting Standards Update No. 2014-15. In August 2014, the FASB issued Accounting Standards Update No. 2014-15 (“ASU 2014-15”), Presentation of Financial Statements – Going Concern (Subtopic 205-40). The purpose of this update is to provide guidance about management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. ASU 2014-15 applies to all reporting entities and is effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. Early adoption is permitted. Adoption of this guidance is expected to have no effect on the Company’s consolidated financial statements.

Accounting Standards Update No. 2014-12. In June 2014, the FASB issued Accounting Standards Update No. 2014-12 (“ASU 2014-12”), Compensation – Stock Compensation (Topic 718). ASU 2014-12 applies to all reporting entities that grant employees share-based payments in which the terms of the award provide that a performance target affecting vesting could be achieved after the requisite service period. ASU 2014-12 is effective for all entities for reporting periods beginning after December 15, 2015. Early adoption is permitted. Entities may apply the amendments in this Update either (a) prospectively to all awards granted or modified after the effective date or (b) retrospectively to all awards with performance targets that are outstanding as of the beginning of the earliest annual period presented in the financial statements and to all new or modified awards thereafter. Although the Company has share-based awards with performance targets, such awards do not permit vesting when a performance target is achieved after termination of an employee’s service. Adoption of this guidance had no effect on the Company’s consolidated financial statements.

Accounting Standards Update No. 2014-09. In May 2014, the FASB issued Accounting Standards Update No. 2014-09 (“ASU 2014-09”), Revenue from Contracts with Customers (Topic 606). The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 supersedes the revenue recognition requirements in Topic 605, Revenue Recognition, and most industry-specific guidance throughout the Industry Topics of the Codification. ASU 2014-09 also amends the existing requirements for the recognition of a gain or loss on the transfer of nonfinancial assets that are not in a contract with a customer to be consistent with the guidance in this ASU. ASU 2014-09 is effective for public entities for reporting periods beginning after December 15, 2016. Early adoption is not permitted. While the guidance specifically excludes revenues from insurance contracts, investments and financial instruments from the scope of the new guidance, the guidance will be applicable to the Company’s other forms of revenue not specifically exempted from the guidance. The adoption of this guidance is not expected to have a material effect on the Company’s consolidated financial statements.

v2.4.1.9
Investments
12 Months Ended
Dec. 31, 2014
Investments, Debt and Equity Securities [Abstract]  
Investments

Note 4 — Investments

The Company holds investments in fixed-maturity securities and equity securities that are classified as available-for-sale. At December 31, 2014 and 2013, the cost or amortized cost, gross unrealized gains and losses, and estimated fair value of the Company’s available-for-sale securities by security type were as follows:

 

     Cost or
Amortized
Cost
     Gross
Unrealized
Gain
     Gross
Unrealized
Loss
     Estimated
Fair

Value
 

As of December 31, 2014

           

Fixed-maturity securities

           

U.S. Treasury and U.S. government agencies

   $ 3,747       $ 9       $ (8    $ 3,748   

Corporate bonds

     24,342         57         (430      23,969   

Mortgage-backed securities

     2,138         4         (3      2,139   

State, municipalities, and political subdivisions

     56,336         1,205         (38      57,503   

Redeemable preferred stock

     9,433         178         (54      9,557   

Other

     167         1         —           168   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

  96,163      1,454      (533   97,084   

Equity securities

  45,387      1,694      (1,531   45,550   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total available-for-sale securities

$ 141,550    $ 3,148    $ (2,064 $ 142,634   
  

 

 

    

 

 

    

 

 

    

 

 

 

As of December 31, 2013

Fixed-maturity securities

U.S. Treasury and U.S. government agencies

$ 4,549    $ 37    $ (22 $ 4,564   

Corporate bonds

  25,139      484      (219   25,404   

Mortgage-backed securities

  10,929      499      (96   11,332   

State, municipalities, and political subdivisions

  69,715      917      (181   70,451   

Redeemable preferred stock

  406      5      (11   400   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

  110,738      1,942      (529   112,151   

Equity securities

  17,248      920      (519   17,649   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total available-for-sale securities

$ 127,986    $ 2,862    $ (1,048 $ 129,800   
  

 

 

    

 

 

    

 

 

    

 

 

 

At December 31, 2014 and 2013, $113 and $105, respectively, of U.S. Treasury securities relate to a statutory deposit held in trust for the Treasurer of Alabama.

Expected maturities will differ from contractual maturities as borrowers may have the right to call or prepay obligations with or without penalties. The scheduled contractual maturities of fixed-maturity securities at December 31, 2014 and 2013 are as follows:

 

     December 31,  
     2014      2013  
     Amortized
Cost
     Estimated
Fair
Value
     Amortized
Cost
     Estimated
Fair

Value
 

Available-for-sale

           

Due in one year or less

   $ 715       $ 721       $ 2,366       $ 2,381   

Due after one year through five years

     25,973         26,093         24,829         25,145   

Due after five years through ten years

     57,157         57,560         59,083         59,582   

Due after ten years

     10,180         10,571         13,531         13,711   

Mortgage-backed securities

     2,138         2,139         10,929         11,332   
  

 

 

    

 

 

    

 

 

    

 

 

 
$ 96,163    $ 97,084    $ 110,738    $ 112,151   
  

 

 

    

 

 

    

 

 

    

 

 

 

 

Sales of Available-for-Sale Securities

Proceeds received, and the gross realized gains and losses from sales of available-for-sale securities, for the years ended December 31, 2014, 2013 and 2012 were as follows:

 

     Proceeds      Gross
Realized
Gains
     Gross
Realized
Losses
 

Year ended December 31, 2014

        

Fixed-maturity securities

   $ 98,365       $ 4,096       $ (98
  

 

 

    

 

 

    

 

 

 

Equity securities

$ 16,810    $ 1,372    $ (635
  

 

 

    

 

 

    

 

 

 

Year ended December 31, 2013

Fixed-maturity securities

$ 1,749    $ 92    $ (4
  

 

 

    

 

 

    

 

 

 

Equity securities

$ 2,809    $ 155    $ (163
  

 

 

    

 

 

    

 

 

 

Year ended December 31, 2012

Fixed-maturity securities

$ 8,991    $ 421    $ (6
  

 

 

    

 

 

    

 

 

 

Equity securities

$ 1,735    $ 91    $ (230
  

 

 

    

 

 

    

 

 

 

Other-than-temporary Impairment

The Company regularly reviews its individual investment securities for other-than-temporary impairment. The Company considers various factors in determining whether each individual security is other-than-temporarily impaired, including:

 

    the financial condition and near-term prospects of the issuer, including any specific events that may affect its operations or earnings;

 

    the length of time and the extent to which the market value of the security has been below its cost or amortized cost;

 

    general market conditions and industry or sector specific factors;

 

    nonpayment by the issuer of its contractually obligated interest and principal payments; and

 

    the Company’s intent and ability to hold the investment for a period of time sufficient to allow for the recovery of costs.

 

Securities with gross unrealized loss positions at December 31, 2014 and 2013, aggregated by investment category and length of time the individual securities have been in a continuous loss position, are as follows:

 

     Less Than Twelve Months      Twelve Months or
Greater
     Total  
     Gross
Unrealized
Loss
    Estimated
Fair

Value
     Gross
Unrealized
Loss
    Estimated
Fair
Value
     Gross
Unrealized
Loss
    Estimated
Fair
Value
 

As of December 31, 2014

              

Fixed-maturity securities

              

U.S. treasury and U.S. government agencies

   $ (8   $ 2,485       $ —        $ —         $ (8   $ 2,485   

Corporate bonds

     (428     12,929         (2     998         (430     13,927   

Mortgage-backed securities

     (3     1,018         —          —           (3     1,018   

State, municipalities, and political subdivisions

     (19     3,144         (19     202         (38     3,346   

Redeemable preferred stock

     (54     2,586         —          —           (54     2,586   
  

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Total fixed-maturity securities

  (512   22,162      (21   1,200      (533   23,362   

Equity securities

  (1,449   18,848      (82   4,619      (1,531   23,467   
  

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Total available-for-sale securities

$ (1,961 $ 41,010    $ (103 $ 5,819    $ (2,064 $ 46,829   
  

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

At December 31, 2014, there were 94 securities in an unrealized loss position. Of these securities, 9 securities had been in an unrealized loss position for 12 months or greater.

 

     Less Than Twelve Months      Twelve Months or
Greater
     Total  
     Gross
Unrealized
Loss
    Estimated
Fair

Value
     Gross
Unrealized
Loss
    Estimated
Fair
Value
     Gross
Unrealized
Loss
    Estimated
Fair
Value
 

As of December 31, 2013

              

Fixed-maturity securities

              

U.S. treasury and U.S. government agencies

   $ (22   $ 3,291       $ —        $ —         $ (22   $ 3,291   

Corporate bonds

     (212     9,502         (7     230         (219     9,732   

Mortgage-backed securities

     (96     2,179         —          —           (96     2,179   

State, municipalities, and political subdivisions

     (181     20,233         —          —           (181     20,233   

Redeemable preferred stock

     (11     239         —          —           (11     239   
  

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Total fixed-maturity securities

  (522   35,444      (7   230      (529   35,674   

Equity securities

  (273   10,742      (246   1,069      (519   11,811   
  

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Total available-for-sale securities

$    (795 $ 46,186    $ (253 $ 1,299    $ (1,048 $ 47,485   
  

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

At December 31, 2013, there were 100 securities in an unrealized loss position. Of these securities, 8 securities had been in an unrealized loss position for 12 months or greater.

Based on the review, the Company believes the unrealized losses on investments in fixed-maturity securities were caused by interest rate changes. Because the decline in fair value is attributable to changes in interest rates or market conditions and not credit quality, and because the Company has the ability and intent to hold these securities and it is not more likely than not that the Company will be required to sell these securities until a market price recovery or maturity, the Company does not consider any of its fixed-maturity securities to be other-than-temporarily impaired at December 31, 2014 and 2013.

 

In determining whether equity securities are other than temporarily impaired, the Company considers its intent and ability to hold a security for a period of time sufficient to allow for the recovery of cost. In the fourth quarter of 2014, the Company determined that one equity security was other-than-temporarily impaired after considering the length of time this security had been in an unrealized loss position, the extent of the decline and its near term prospect of recovery. As a result, the Company recognized an impairment charge of $107 in net investment income.

Limited Partnership Investment

During the fourth quarter of 2014, the Company entered into a subscription agreement to invest up to a maximum of $12,500 for a 16.5% limited partnership interest. The primary investment strategy of the partnership is to invest in senior secured loans and, to a limited extent, in other debt and equity securities of private U.S. lower-middle-market companies. Except under certain circumstances, the Company is not permitted to withdraw any amount of its capital investment for a minimum of 10 years. The Company’s involvement is limited to that of a passive investor. As such, the Company is not the primary beneficiary and does not consolidate the partnership. For the year ended December 31, 2014, the Company recognized a $90 investment loss in net investment income. At December 31, 2014, the Company’s contributed capital to the partnership is $2,640 and its carrying value and maximum exposure to loss is $2,550.

Investment in Joint Venture

In September 2014, Melbourne FMA, LLC, a wholly owned subsidiary, entered into a joint venture agreement with FMKT Sponsor, LLC to organize FMKT Mel JV, LLC (“FMJV”), a Florida limited liability company. Melbourne FMA and FMKT Sponsor contributed cash of $4,500 and $500, respectively, for equity interests in FMJV of 90% and 10%, respectively. The joint venture will acquire and develop land on which the joint venture partners plan to construct a retail shopping center for lease or for sale in Melbourne, Florida. FMJV is deemed a VIE due to its lack of sufficient equity to finance its operations without direct or indirect additional financial support from parties to the joint venture. Although Melbourne FMA holds a majority interest in FMJV, certain major economic decisions specified in the agreement are not under Melbourne FMA’s control. As a result, Melbourne FMA is not the primary beneficiary and is not required to consolidate FMJV.

In addition, FMJV is contractually required to engage affiliates of FMKT Sponsor to manage and develop the project, and also operate the property while the joint venture agreement is in effect. The agreement includes FMKT Sponsor’s right of sale and first offer as well as an embedded option under which Melbourne FMA can purchase the entire interest of FMKT Sponsor. Under the right of sale and first offer, Melbourne FMA can either choose to purchase the interest of FMKT Sponsor in the developed property or approve the sale of the developed property to a third party buyer. Either party can initiate these provisions after the expiration of a restricted period.

 

At December 31, 2014, the Company’s maximum exposure to loss relating to the VIE was $4,477 representing the carrying value of the investment. At December 31, 2014, an undistributed $23 loss from equity method investees was included in consolidated retained income. The joint venture partners received no distributions during 2014. The following tables provide summarized operating results and the financial position of FMJV:

 

     Year Ended
December 31, 2014
 
     (Unaudited)  

Operating results:

  

Revenue

   $ —     

Operating expenses

     25   
  

 

 

 

Net loss

$ (25
  

 

 

 

Melbourne FMA’s share of net loss*

$ (23

 

* Included in net investment income in the Company’s consolidated statements of income.

 

     December 31,
2014
 
     (Unaudited)  

Balance Sheet:

  

Construction in progress - real estate

   $ 3,612   

Cash

     1,323   

Other

     40   
  

 

 

 

Total assets

$ 4,975   
  

 

 

 

Other liabilities

  —     

Members’ capital

  4,975   
  

 

 

 

Total liabilities and members’ capital

$ 4,975   
  

 

 

 

Investment in joint venture, at equity

$ 4,477   

Real Estate Investments

Real estate investments consist of the ADC Arrangement and the Company’s real estate portfolio and the related assets of the marina and restaurant facilities. Operating activities related to the Company’s real estate investments include leasing of office and retail space to tenants, wet and dry boat storage, a restaurant, and fuel services with respect to marina clients and recreational boaters.

 

Real estate investments consist of the following as of December 31, 2014 and 2013:

 

     December 31,  
     2014      2013  

Land

   $ 11,476       $ 11,299   

Land improvements

     1,425         1,351   

Building

     3,097         3,022   

Other

     1,359         1,262   
  

 

 

    

 

 

 

Total, at cost

  17,357      16,934   

Less: accumulated depreciation and amortization

  (1,107   (706
  

 

 

    

 

 

 

Real estate, net

  16,250      16,228   

ADC Arrangement classified as real estate investment

  2,888      —     
  

 

 

    

 

 

 

Real estate investments

$ 19,138    $ 16,228   
  

 

 

    

 

 

 

Depreciation and amortization expense for other investments was $402, $388 and $279, respectively, for the years ended December 31, 2014, 2013 and 2012.

ADC Arrangement

In June 2014, the Company’s wholly owned subsidiary, Greenleaf Capital, LLC, entered into an ADC Arrangement under which it agreed to provide financing up to a maximum of $9,785 for the acquisition, development and construction of a retail shopping center and appurtenant facilities. Greenleaf Capital has an option to purchase the property when the construction project is completed contingent upon tenant rental commitments for at least 90% of rentable space being secured by the developer. The purchase price is calculated at maturity of the loan using a predetermined capitalization rate and the projected net operating income of the developed property. The loan has an initial term of 24 months and can be extended for an additional 12 months if the purchase option is not exercised by Greenleaf Capital. Prepayment is not permitted while the ADC Arrangement is in effect. The loan bears a fixed annual interest rate of 6% due monthly in arrears. The loan agreement is secured by a) a first mortgage on the land and improvements, b) assignment of all leases, rents, issues, and profits from the land and improvements, and c) personal guarantees.

Under this ADC Arrangement, Greenleaf Capital will provide substantially all necessary funds to complete the development and Greenleaf Capital will receive the entire residual profit of the developed property if it exercises the purchase option. The developer may make multiple draws on the credit facility as the construction progresses. Based on the characteristics of this ADC Arrangement which are similar to those of an investment, combined with the expected residual profit being greater than 50%, the arrangement is accounted for and reported in the balance sheet as a real estate investment. All project costs associated with the ADC Arrangement are capitalized. The loan commitment fee received by Greenleaf Capital is deferred and recognized in investment income on a straight-line basis over the term of the loan agreement.

Because of the purchase option and the substantial financial support provided by Greenleaf Capital, the developer who has no equity interest in the property is a VIE. However, Greenleaf Capital’s involvement is solely as the lender on the mortgage loan with protective rights as the lender. Greenleaf Capital does not have power to direct the activities that most significantly impact economic performance of the VIE. As a result, Greenleaf Capital is not the primary beneficiary and is not required to consolidate the VIE. At December 31, 2014, the Company’s maximum exposure to loss relating to the VIE was $2,888 representing the carrying value of the ADC Arrangement.

 

In addition, Greenleaf Capital determined that the option to purchase the entire developed property is not a derivative financial instrument pursuant to U.S. GAAP. As such, the embedded feature is not required to be bifurcated and the fair value accounting for the embedded feature at each reporting date is not applicable.

Net Investment Income (Loss)

Net investment income (loss), by source, is summarized as follows:

 

     Years Ended December 31,  
     2014      2013      2012  

Available-for-sale securities:

        

Fixed-maturity securities

   $ 3,339       $ 1,868       $ 1,464   

Equity securities

     2,364         499         492   

Other-than-temporary impairment charge

     (107      —           —     

Investment expense

     (436      (210      (150

Limited partnership investment

     (90      —           —     

Time deposits

     —           —           357   

Real estate investments

     (955      (1,045      (1,334

Cash and cash equivalents

     666         357         151   
  

 

 

    

 

 

    

 

 

 
$ 4,781    $ 1,469    $ 980   
  

 

 

    

 

 

    

 

 

 

At December 31, 2014, $234,025 or 74.4% of the Company’s cash and cash equivalents were deposited at three national banks and included $48,674 in three custodial accounts. At December 31, 2013, $241,378 or 82.3% of the Company’s cash and cash equivalents were deposited at three national banks and included $22,252 in two custodial accounts.

v2.4.1.9
Fair Value Measurements
12 Months Ended
Dec. 31, 2014
Fair Value Disclosures [Abstract]  
Fair Value Measurements

Note 5 — Fair Value Measurements

The Company records and discloses certain financial assets at their estimated fair value. The fair value hierarchy prioritizes the inputs to valuation techniques used to measure fair value into three broad levels as follows:

Level 1 – Unadjusted quoted prices in active markets for identical assets.

Level 2 – Other inputs that are observable for the asset, either directly or indirectly.

Level 3 – Inputs that are unobservable.

Valuation Methodology

Cash and cash equivalents

Cash and cash equivalents primarily consist of money-market funds. Their carrying value approximates fair value due to the short maturity and high liquidity of these funds.

 

Available-for-sale securities

Estimated fair values of the Company’s available-for-sale securities are determined in accordance with U.S. GAAP, using valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. Fair values are generally measured using quoted prices in active markets for identical securities or other inputs that are observable either directly or indirectly, such as quoted prices for similar securities. In those instances where observable inputs are not available, fair values are measured using unobservable inputs. Unobservable inputs reflect the Company’s own assumptions about the assumptions that market participants would use in pricing the security and are developed based on the best information available in the circumstances. Fair value estimates derived from unobservable inputs are significantly affected by the assumptions used, including the discount rates and the estimated amounts and timing of future cash flows. The derived fair value estimates cannot be substantiated by comparison to independent markets and are not necessarily indicative of the amounts that would be realized in a current market exchange.

The estimated fair values for securities that do not trade on a daily basis are determined by management, utilizing prices obtained from an independent pricing service and information provided by brokers. Management reviews the assumptions and methods utilized by the pricing service and then compares the relevant data and pricing to broker-provided data. The Company gains assurance of the overall reasonableness and consistent application of the assumptions and methodologies and compliance with accounting standards for fair value determination through ongoing monitoring of the reported fair values.

ADC Arrangement Classified as Real Estate Investment

As described in Note 4 — “Investments” under ADC Arrangement, the ADC Arrangement represents a financing agreement with a purchase option between Greenleaf Capital and a property developer. Based on the characteristics of this ADC Arrangement which are similar to those of an investment, combined with the expected residual profit being greater than 50%, the arrangement is included in real estate investments at its carrying value in the balance sheet. Projected future cash inflows at maturity are discounted using a prevailing borrowing rate to estimate its fair value that relies on Level 3 inputs.

Limited Partnership Investment

As described in Note 4 — “Investments” under Limited Partnership Investment, the Company entered into a subscription agreement to invest up to a maximum of $12,500 for a 16.5% limited partnership interest. The initial contribution was made in December 2014. Valuation of the Company’s limited partnership interest will be based upon the net asset value provided by the fund manager. The net asset value will be on a three- to six-month lag and was not available as of December 31, 2014 as the partnership was newly formed during the quarter ended December 31, 2014.

 

Long-term debt

Long-term debt includes the Company’s 8% senior notes due 2020 and 3.875% convertible senior notes due 2019. The 8% senior notes were initially sold to the public in January 2013 and trade on the New York Stock Exchange. The estimated fair value of the 8% senior notes is based on the closing market price on December 31, 2014. The 3.875% convertible senior notes were sold in a private offering completed on December 30, 2013. The fair value of the 3.875% convertible senior notes is estimated using a discounted cash flow method that relies on Level 3 inputs.

Assets Measured at Estimated Fair Value on a Recurring Basis:

The following tables present information about the Company’s financial assets measured at estimated fair value on a recurring basis. The table indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value as of December 31, 2014 and 2013:

 

     Fair Value Measurements Using         
     (Level 1)      (Level 2)      (Level 3)      Total  

As of December 31, 2014

           

Financial Assets:

           

Cash and cash equivalents

   $ 314,716       $ —         $ —         $ 314,716   
  

 

 

    

 

 

    

 

 

    

 

 

 

Fixed-maturity securities:

U.S. Treasury and U.S. government agencies

  1,069      2,679      —        3,748   

Corporate bonds

  22,274      1,695      —        23,969   

Mortgage-backed securities

  —        2,139      —        2,139   

State, municipalities, and political subdivisions

  —        57,503      —        57,503   

Redeemable preferred stock

  9,557      —        —        9,557   

Other

  —        168      —        168