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SCHEDULE II CONDENSED FINANCIAL INFORMATION OF REGISTRANT
 12 Months Ended
Dec. 31, 2018
SCHEDULE II CONDENSED FINANCIAL INFORMATION OF REGISTRANT [Abstract]  
SCHEDULE II CONDENSED FINANCIAL INFORMATION OF REGISTRANT
SCHEDULE II

PROTECTIVE INSURANCE CORPORATION AND SUBSIDIARIES
CONDENSED FINANCIAL INFORMATION OF REGISTRANT
BALANCE SHEETS - PARENT COMPANY ONLY
(in thousands)

  
December 31
 
  
2018
  
2017
 
Assets
      
Investment in subsidiaries
 
$
401,260
  
$
436,879
 
Due from affiliates
  
1,152
   
1,191
 
Investments other than subsidiaries:
        
Fixed income securities
  
22,302
   
22,306
 
Limited partnerships
  
215
   
222
 
   
22,517
   
22,528
 
Cash and cash equivalents
  
15,185
   
26,496
 
Accounts receivable
  
2,276
   
6,833
 
Other assets
  
28,794
   
24,772
 
Total assets
 
$
471,184
  
$
518,699
 
         
Liabilities and shareholders' equity
        
         
Liabilities:
        
Premiums payable
 
$
22,964
  
$
14,046
 
Deposits from insureds
  
58,748
   
60,893
 
Short-term borrowings
  
20,000
   
20,000
 
Other liabilities
  
13,390
   
4,949
 
   
115,102
   
99,888
 
Shareholders' equity:
        
Common stock:
        
Class A
  
112
   
112
 
Class B
  
522
   
530
 
Additional paid-in capital
  
54,720
   
55,078
 
Accumulated other comprehensive income (loss)
  
(7,347
)
  
46,391
 
Retained earnings
  
308,075
   
316,700
 
   
356,082
   
418,811
 
         
Total liabilities and shareholders' equity
 
$
471,184
  
$
518,699
 


SCHEDULE II

PROTECTIVE INSURANCE CORPORATION AND SUBSIDIARIES
CONDENSED FINANCIAL INFORMATION OF REGISTRANT
STATEMENTS OF INCOME (LOSS) - PARENT COMPANY ONLY
(in thousands)

  
Year Ended December 31
 
  
2018
  
2017
  
2016
 
Revenue:
         
Commissions and service fees
 
$
17,456
  
$
18,863
  
$
27,736
 
Cash dividends from subsidiaries
  
5,000
   
10,000
   
20,000
 
Net investment income
  
569
   
348
   
134
 
Net realized gains (losses) on investments
  
(192
)
  
308
   
(3
)
Other
  
51
   
(106
)
  
(24
)
   
22,884
   
29,413
   
47,843
 
Expenses:
            
Salary and related items
  
20,158
   
18,140
   
17,462
 
Other
  
11,724
   
9,686
   
10,808
 
   
31,882
   
27,826
   
28,270
 
Income (loss) before federal income tax benefit and equity in undistributed income of subsidiaries
  
(8,998
)
  
1,587
   
19,573
 
Federal income tax benefit
  
(2,862
)
  
(2,971
)
  
(69
)
   
(6,136
)
  
4,558
   
19,642
 
Equity in undistributed income of subsidiaries
  
(27,939
)
  
13,765
   
9,303
 
             
Net income (loss)
 
$
(34,075
)
 
$
18,323
  
$
28,945
 


SCHEDULE II

PROTECTIVE INSURANCE CORPORATION AND SUBSIDIARIES
CONDENSED FINANCIAL INFORMATION OF REGISTRANT
STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - PARENT COMPANY ONLY
(in thousands)

  
Year Ended December 31
 
  
2018
  
2017
  
2016
 
Net income (loss)
 
$
(34,075
)
 
$
18,323
  
$
28,945
 
             
Other comprehensive income (loss), net of tax:
            
Unrealized net gains (losses) on fixed income securities:
            
Unrealized net gains (losses) arising during the period
  
(9,680
)
  
17,340
   
8,618
 
Less: reclassification adjustment for net gains (losses) included in net income (loss)
  
(2,812
)
  
4,691
   
13,491
 
   
(6,868
)
  
12,649
   
(4,873
)
             
Foreign currency translation adjustments
  
(830
)
  
522
   
235
 
             
Other comprehensive income (loss)
  
(7,698
)
  
13,171
   
(4,638
)
             
Comprehensive income (loss)
 
$
(41,773
)
 
$
31,494
  
$
24,307
 


SCHEDULE II
PROTECTIVE INSURANCE CORPORATION AND SUBSIDIARIES
CONDENSED FINANCIAL INFORMATION OF REGISTRANT
STATEMENTS OF CASH FLOWS - PARENT COMPANY ONLY
(in thousands)

  
Year Ended December 31
 
  
2018
  
2017
  
2016
 
Net cash provided by operating activities
 
$
14,019
  
$
44,998
  
$
15,484
 
             
Investing activities:
            
Purchases of investments
  
(11,435
)
  
(21,365
)
  
(4,000
)
Sales or maturities of investments
  
11,213
   
9,146
   
3,493
 
Net sales of short-term investments
  
–
   
–
   
2,165
 
Distributions from limited partnerships
  
–
   
298
   
–
 
Net purchases of property and equipment
  
(3,677
)
  
(3,394
)
  
(4,278
)
Net cash used in investing activities
  
(3,899
)
  
(15,315
)
  
(2,620
)
             
Financing activities:
            
Dividends paid to shareholders
  
(16,835
)
  
(16,302
)
  
(15,803
)
Repurchase of common shares
  
(4,596
)
  
(1,880
)
  
–
 
Net cash used in financing activities
  
(21,431
)
  
(18,182
)
  
(15,803
)
             
Increase (decrease) in cash, cash equivalents and restricted cash and cash equivalents
  
(11,311
)
  
11,501
   
(2,939
)
Cash, cash equivalents and restricted cash and cash equivalents at beginning of year
  
26,496
   
14,995
   
17,934
 
Cash, cash equivalents and restricted cash and cash equivalents at end of year
 
$
15,185
  
$
26,496
  
$
14,995
 

Note to Condensed Financial Statements -- Basis of Presentation

The Company's investment in subsidiaries is stated at cost plus equity in the undistributed earnings of subsidiaries since the date of acquisition.  The Company's share of net income of its subsidiaries is included in income using the equity method.  These financial statements should be read in conjunction with the Company's consolidated financial statements.