• Filing Date: 2015-03-10
  • Form Type: 10-K
  • Description: Annual report
v2.4.1.9
Investments (Tables)
12 Months Ended
Dec. 31, 2014
Investments, Debt and Equity Securities [Abstract]  
Summary of Amortized Cost, Gross Unrealized Gains and Losses, and Estimated Fair Value of Available-for-Sale Securities

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   
  

 

 

    

 

 

    

 

 

    

 

 

 

Scheduled Contractual Maturities of Fixed-Maturity Securities

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   
  

 

 

    

 

 

    

 

 

    

 

 

 

Summary of Proceeds Received and Gross Realized Gains and Losses from 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
  

 

 

    

 

 

    

 

 

 

Summary of Securities with Gross Unrealized Loss Positions Aggregated by Investment Category

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   
  

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Summary of Operating Results and Financial Position

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   

Summary of Real Estate Investment

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   
  

 

 

    

 

 

 

Investment Income Summarized

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