☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | ||||
For the transition period from ____________ to ____________ |
Delaware | 14-1957288 | ||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | ||||
800 Gessner Road, Suite 600 Houston, Texas | 77024-4284 | ||||
(Address of Principal Executive Offices) | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Common stock, par value $0.01 | SKWD | The Nasdaq Stock Market LLC |
Large accelerated filer | ☐ | Accelerated filer | ☐ | ||||||||
Non-accelerated filer | ☒ | Smaller reporting company | ☐ | ||||||||
Emerging growth company | ☒ |
Form 10-Q | Item and Description | Page | ||||||
March 31, 2023 | December 31, 2022 | June 30, 2023 | December 31, 2022 | |||||||||||||||||||||||||
($ in thousands, except share and per share amounts) | ($ in thousands, except share and per share amounts) | (Unaudited) | ($ in thousands, except share and per share amounts) | (Unaudited) | ||||||||||||||||||||||||
Assets | Assets | Assets | ||||||||||||||||||||||||||
Investments: | Investments: | Investments: | ||||||||||||||||||||||||||
Fixed maturity securities, available-for-sale, at fair value (amortized cost of $718,395 and $662,616, respectively) | $ | 673,137 | $ | 607,572 | ||||||||||||||||||||||||
Fixed maturity securities, held-to-maturity, at amortized cost (net of allowance for credit losses of $321 as of March 31, 2023) | 48,216 | 52,467 | ||||||||||||||||||||||||||
Fixed maturity securities, available-for-sale, at fair value (amortized cost of $819,762 and $662,616, respectively) | Fixed maturity securities, available-for-sale, at fair value (amortized cost of $819,762 and $662,616, respectively) | $ | 767,491 | $ | 607,572 | |||||||||||||||||||||||
Fixed maturity securities, held-to-maturity, at amortized cost (net of allowance for credit losses of $332 as of June 30, 2023) | Fixed maturity securities, held-to-maturity, at amortized cost (net of allowance for credit losses of $332 as of June 30, 2023) | 47,172 | 52,467 | |||||||||||||||||||||||||
Equity securities, at fair value | Equity securities, at fair value | 120,465 | 120,169 | Equity securities, at fair value | 127,861 | 120,169 | ||||||||||||||||||||||
Mortgage loans (at fair value as of March 31, 2023; at amortized cost as of December 31, 2022) | 42,335 | 51,859 | ||||||||||||||||||||||||||
Mortgage loans (at fair value as of June 30, 2023; at amortized cost as of December 31, 2022) | Mortgage loans (at fair value as of June 30, 2023; at amortized cost as of December 31, 2022) | 32,762 | 51,859 | |||||||||||||||||||||||||
Other long-term investments | Other long-term investments | 118,784 | 129,142 | Other long-term investments | 124,845 | 129,142 | ||||||||||||||||||||||
Short-term investments, at fair value | Short-term investments, at fair value | 287,351 | 121,158 | Short-term investments, at fair value | 190,670 | 121,158 | ||||||||||||||||||||||
Total investments | Total investments | 1,290,288 | 1,082,367 | Total investments | 1,290,801 | 1,082,367 | ||||||||||||||||||||||
Cash and cash equivalents | Cash and cash equivalents | 41,200 | 45,438 | Cash and cash equivalents | 67,506 | 45,438 | ||||||||||||||||||||||
Restricted cash | Restricted cash | 64,047 | 79,573 | Restricted cash | 34,353 | 79,573 | ||||||||||||||||||||||
Premiums receivable, net | Premiums receivable, net | 178,954 | 139,215 | Premiums receivable, net | 266,345 | 139,215 | ||||||||||||||||||||||
Reinsurance recoverables, net | Reinsurance recoverables, net | 570,504 | 581,359 | Reinsurance recoverables, net | 582,922 | 581,359 | ||||||||||||||||||||||
Ceded unearned premium | Ceded unearned premium | 197,044 | 157,645 | Ceded unearned premium | 267,672 | 157,645 | ||||||||||||||||||||||
Deferred policy acquisition costs | Deferred policy acquisition costs | 80,103 | 68,938 | Deferred policy acquisition costs | 93,364 | 68,938 | ||||||||||||||||||||||
Deferred income taxes | Deferred income taxes | 30,572 | 36,188 | Deferred income taxes | 32,017 | 36,188 | ||||||||||||||||||||||
Goodwill and intangible assets, net | Goodwill and intangible assets, net | 89,503 | 89,870 | Goodwill and intangible assets, net | 89,181 | 89,870 | ||||||||||||||||||||||
Other assets | Other assets | 79,110 | 82,846 | Other assets | 83,011 | 82,846 | ||||||||||||||||||||||
Total assets | Total assets | $ | 2,621,325 | $ | 2,363,439 | Total assets | $ | 2,807,172 | $ | 2,363,439 | ||||||||||||||||||
Liabilities and stockholders’ equity | Liabilities and stockholders’ equity | Liabilities and stockholders’ equity | ||||||||||||||||||||||||||
Liabilities: | Liabilities: | Liabilities: | ||||||||||||||||||||||||||
Reserves for losses and loss adjustment expenses | Reserves for losses and loss adjustment expenses | $ | 1,173,176 | $ | 1,141,757 | Reserves for losses and loss adjustment expenses | $ | 1,224,127 | $ | 1,141,757 | ||||||||||||||||||
Unearned premiums | Unearned premiums | 501,218 | 442,509 | Unearned premiums | 591,237 | 442,509 | ||||||||||||||||||||||
Deferred ceding commission | Deferred ceding commission | 40,824 | 29,849 | Deferred ceding commission | 54,191 | 29,849 | ||||||||||||||||||||||
Reinsurance and premium payables | Reinsurance and premium payables | 185,748 | 113,696 | Reinsurance and premium payables | 198,948 | 113,696 | ||||||||||||||||||||||
Funds held for others | Funds held for others | 44,256 | 36,858 | Funds held for others | 41,152 | 36,858 | ||||||||||||||||||||||
Accounts payable and accrued liabilities | Accounts payable and accrued liabilities | 40,328 | 48,499 | Accounts payable and accrued liabilities | 46,189 | 48,499 | ||||||||||||||||||||||
Notes payable | Notes payable | 50,000 | 50,000 | Notes payable | 50,000 | 50,000 | ||||||||||||||||||||||
Subordinated debt, net of debt issuance costs | Subordinated debt, net of debt issuance costs | 78,629 | 78,609 | Subordinated debt, net of debt issuance costs | 78,650 | 78,609 | ||||||||||||||||||||||
Total liabilities | Total liabilities | 2,114,179 | 1,941,777 | Total liabilities | 2,284,494 | 1,941,777 | ||||||||||||||||||||||
Stockholders’ equity | Stockholders’ equity | Stockholders’ equity | ||||||||||||||||||||||||||
Series A preferred stock, $0.01 par value; 10,000,000 and 2,000,000 shares authorized, 0 and 1,969,660 shares issued and outstanding, respectively | Series A preferred stock, $0.01 par value; 10,000,000 and 2,000,000 shares authorized, 0 and 1,969,660 shares issued and outstanding, respectively | — | 20 | Series A preferred stock, $0.01 par value; 10,000,000 and 2,000,000 shares authorized, 0 and 1,969,660 shares issued and outstanding, respectively | — | 20 | ||||||||||||||||||||||
Common stock, $0.01 par value, 500,000,000 and 168,000,000 shares authorized, 37,658,111 and 16,832,955 shares issued, respectively | 377 | 168 | ||||||||||||||||||||||||||
Common stock, $0.01 par value, 500,000,000 and 168,000,000 shares authorized, 37,674,063 and 16,832,955 shares issued, respectively | Common stock, $0.01 par value, 500,000,000 and 168,000,000 shares authorized, 37,674,063 and 16,832,955 shares issued, respectively | 377 | 168 | |||||||||||||||||||||||||
Treasury stock, $0.01 par value, 0 and 233,289 shares, respectively | Treasury stock, $0.01 par value, 0 and 233,289 shares, respectively | — | (2) | Treasury stock, $0.01 par value, 0 and 233,289 shares, respectively | — | (2) | ||||||||||||||||||||||
Additional paid-in capital | Additional paid-in capital | 641,368 | 577,289 | Additional paid-in capital | 642,988 | 577,289 | ||||||||||||||||||||||
Stock notes receivable | Stock notes receivable | (6,718) | (6,911) | Stock notes receivable | (6,718) | (6,911) | ||||||||||||||||||||||
Accumulated other comprehensive loss | Accumulated other comprehensive loss | (35,744) | (43,485) | Accumulated other comprehensive loss | (41,284) | (43,485) | ||||||||||||||||||||||
Accumulated deficit | Accumulated deficit | (92,137) | (105,417) | Accumulated deficit | (72,685) | (105,417) | ||||||||||||||||||||||
Total stockholders’ equity | Total stockholders’ equity | 507,146 | 421,662 | Total stockholders’ equity | 522,678 | 421,662 | ||||||||||||||||||||||
Total liabilities and stockholders’ equity | Total liabilities and stockholders’ equity | $ | 2,621,325 | $ | 2,363,439 | Total liabilities and stockholders’ equity | $ | 2,807,172 | $ | 2,363,439 |
Three months ended March 31, | Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||||||||
($ in thousands, except share and per share amounts) | ($ in thousands, except share and per share amounts) | 2023 | 2022 | ($ in thousands, except share and per share amounts) | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||||||||||||||||||||||
Revenues: | Revenues: | Revenues: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net earned premiums | Net earned premiums | $ | 182,831 | $ | 141,726 | Net earned premiums | $ | 194,347 | $ | 146,076 | $ | 377,178 | $ | 287,803 | ||||||||||||||||||||||||||||||||||||||
Commission and fee income | Commission and fee income | 1,492 | 230 | Commission and fee income | 2,240 | 2,060 | 3,732 | 2,290 | ||||||||||||||||||||||||||||||||||||||||||||
Net investment income | Net investment income | 4,646 | 15,149 | Net investment income | 8,583 | 10,530 | 13,229 | 25,679 | ||||||||||||||||||||||||||||||||||||||||||||
Net investment gains (losses) | Net investment gains (losses) | 961 | (4,438) | Net investment gains (losses) | 5,351 | (14,374) | 6,312 | (18,812) | ||||||||||||||||||||||||||||||||||||||||||||
Total revenues | Total revenues | 189,930 | 152,667 | Total revenues | 210,521 | 144,292 | 400,451 | 296,960 | ||||||||||||||||||||||||||||||||||||||||||||
Expenses: | Expenses: | Expenses: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Losses and loss adjustment expenses | Losses and loss adjustment expenses | 114,900 | 89,989 | Losses and loss adjustment expenses | 124,405 | 91,801 | 239,305 | 181,790 | ||||||||||||||||||||||||||||||||||||||||||||
Underwriting, acquisition and insurance expenses | Underwriting, acquisition and insurance expenses | 51,655 | 40,534 | Underwriting, acquisition and insurance expenses | 56,683 | 44,383 | 108,338 | 84,918 | ||||||||||||||||||||||||||||||||||||||||||||
Interest expense | Interest expense | 2,152 | 1,177 | Interest expense | 2,466 | 1,365 | 4,618 | 2,542 | ||||||||||||||||||||||||||||||||||||||||||||
Amortization expense | Amortization expense | 387 | 387 | Amortization expense | 486 | 386 | 873 | 773 | ||||||||||||||||||||||||||||||||||||||||||||
Other expenses | Other expenses | 1,114 | — | Other expenses | 1,465 | — | 2,579 | — | ||||||||||||||||||||||||||||||||||||||||||||
Total expenses | Total expenses | 170,208 | 132,087 | Total expenses | 185,505 | 137,935 | 355,713 | 270,023 | ||||||||||||||||||||||||||||||||||||||||||||
Income before income taxes | Income before income taxes | 19,722 | 20,580 | Income before income taxes | 25,016 | 6,357 | 44,738 | 26,937 | ||||||||||||||||||||||||||||||||||||||||||||
Income tax expense | Income tax expense | 4,166 | 4,269 | Income tax expense | 5,564 | 1,292 | 9,730 | 5,561 | ||||||||||||||||||||||||||||||||||||||||||||
Net income | Net income | 15,556 | 16,311 | Net income | 19,452 | 5,065 | 35,008 | 21,376 | ||||||||||||||||||||||||||||||||||||||||||||
Net income attributable to participating securities | Net income attributable to participating securities | 1,274 | 7,823 | Net income attributable to participating securities | — | 2,437 | 1,402 | 10,283 | ||||||||||||||||||||||||||||||||||||||||||||
Net income attributable to common shareholders | $ | 14,282 | $ | 8,488 | ||||||||||||||||||||||||||||||||||||||||||||||||
Net income attributable to common stockholders | Net income attributable to common stockholders | $ | 19,452 | $ | 2,628 | $ | 33,606 | $ | 11,093 | |||||||||||||||||||||||||||||||||||||||||||
Comprehensive income (loss): | Comprehensive income (loss): | Comprehensive income (loss): | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | Net income | $ | 15,556 | $ | 16,311 | Net income | $ | 19,452 | $ | 5,065 | $ | 35,008 | $ | 21,376 | ||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss): | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive (loss) income: | Other comprehensive (loss) income: | |||||||||||||||||||||||||||||||||||||||||||||||||||
Unrealized gains and losses on investments: | Unrealized gains and losses on investments: | Unrealized gains and losses on investments: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net change in unrealized gains (losses) on investments, net of tax | 7,788 | (16,705) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net change in unrealized (losses) gains on investments, net of tax | Net change in unrealized (losses) gains on investments, net of tax | (4,375) | (14,797) | 3,413 | (31,502) | |||||||||||||||||||||||||||||||||||||||||||||||
Reclassification adjustment for (losses) gains on securities no longer held, net of tax | Reclassification adjustment for (losses) gains on securities no longer held, net of tax | (47) | 301 | Reclassification adjustment for (losses) gains on securities no longer held, net of tax | (1,165) | 30 | (1,212) | 331 | ||||||||||||||||||||||||||||||||||||||||||||
Total other comprehensive income (loss) | 7,741 | (16,404) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total other comprehensive (loss) income | Total other comprehensive (loss) income | (5,540) | (14,767) | 2,201 | (31,171) | |||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive income (loss) | Comprehensive income (loss) | $ | 23,297 | $ | (93) | Comprehensive income (loss) | $ | 13,912 | $ | (9,702) | $ | 37,209 | $ | (9,795) | ||||||||||||||||||||||||||||||||||||||
Per share data: | Per share data: | Per share data: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Basic earnings per share | Basic earnings per share | $ | 0.43 | $ | 0.52 | Basic earnings per share | $ | 0.53 | $ | 0.16 | $ | 0.97 | $ | 0.67 | ||||||||||||||||||||||||||||||||||||||
Diluted earnings per share | Diluted earnings per share | $ | 0.42 | $ | 0.50 | Diluted earnings per share | $ | 0.51 | $ | 0.16 | $ | 0.93 | $ | 0.66 | ||||||||||||||||||||||||||||||||||||||
Weighted-average common shares outstanding | Weighted-average common shares outstanding | Weighted-average common shares outstanding | ||||||||||||||||||||||||||||||||||||||||||||||||||
Basic | Basic | 32,848,243 | 16,376,720 | Basic | 36,603,779 | 16,449,810 | 34,746,874 | 16,449,810 | ||||||||||||||||||||||||||||||||||||||||||||
Diluted | Diluted | 36,952,073 | 32,412,307 | Diluted | 38,143,585 | 32,660,316 | 37,503,914 | 32,600,247 |
($ in thousands) | ($ in thousands) | Preferred Stock | Common Stock | Treasury Stock | Additional Paid-in Capital | Stock Notes Receivable | Accumulated Other Comprehensive Loss | Accumulated Deficit | Total | ($ in thousands) | Preferred Stock | Common Stock | Treasury Stock | Additional Paid-in Capital | Stock Notes Receivable | Accumulated Other Comprehensive Loss | Accumulated Deficit | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at January 1, 2023 | Balance at January 1, 2023 | $ | 20 | $ | 168 | $ | (2) | $ | 577,289 | $ | (6,911) | $ | (43,485) | $ | (105,417) | $ | 421,662 | Balance at January 1, 2023 | $ | 20 | $ | 168 | $ | (2) | $ | 577,289 | $ | (6,911) | $ | (43,485) | $ | (105,417) | $ | 421,662 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cumulative effect on adoption of ASU No. 2016-13 | Cumulative effect on adoption of ASU No. 2016-13 | — | — | — | — | — | — | (2,276) | (2,276) | Cumulative effect on adoption of ASU No. 2016-13 | — | — | — | — | — | — | (2,276) | (2,276) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Employee equity transactions | Employee equity transactions | — | — | — | 1,864 | 193 | — | — | 2,057 | Employee equity transactions | — | — | — | 1,864 | 193 | — | — | 2,057 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Preferred stock conversion to common shares | Preferred stock conversion to common shares | (20) | 161 | 2 | (143) | — | — | — | — | Preferred stock conversion to common shares | (20) | 161 | 2 | (143) | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from initial public offering, net | Proceeds from initial public offering, net | — | 48 | — | 62,358 | — | — | — | 62,406 | Proceeds from initial public offering, net | — | 48 | — | 62,358 | — | — | — | 62,406 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | Net income | — | — | — | — | — | — | 15,556 | 15,556 | Net income | — | — | — | — | — | — | 15,556 | 15,556 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income, net of tax | Other comprehensive income, net of tax | — | — | — | — | — | 7,741 | — | 7,741 | Other comprehensive income, net of tax | — | — | — | — | — | 7,741 | — | 7,741 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2023 | Balance at March 31, 2023 | $ | — | $ | 377 | $ | — | $ | 641,368 | $ | (6,718) | $ | (35,744) | $ | (92,137) | $ | 507,146 | Balance at March 31, 2023 | $ | — | $ | 377 | $ | — | $ | 641,368 | $ | (6,718) | $ | (35,744) | $ | (92,137) | $ | 507,146 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Employee equity transactions | Employee equity transactions | — | — | — | 2,011 | — | — | — | 2,011 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expenses from initial public offering | Expenses from initial public offering | (391) | (391) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | Net income | — | — | — | — | — | — | 19,452 | 19,452 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss, net of tax | Other comprehensive loss, net of tax | — | — | — | — | — | (5,540) | — | (5,540) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2023 | Balance at June 30, 2023 | $ | — | $ | 377 | $ | — | $ | 642,988 | $ | (6,718) | $ | (41,284) | $ | (72,685) | $ | 522,678 |
($ in thousands) | ($ in thousands) | Preferred Stock | Common Stock | Treasury Stock | Additional Paid-in Capital | Stock Notes Receivable | Accumulated Other Comprehensive Loss | Accumulated Deficit | Total | ($ in thousands) | Preferred Stock | Common Stock | Treasury Stock | Additional Paid-in Capital | Stock Notes Receivable | Accumulated Other Comprehensive Loss | Accumulated Deficit | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at January 1, 2022 | Balance at January 1, 2022 | $ | 20 | $ | 168 | $ | (2) | $ | 575,159 | $ | (9,092) | $ | 4,640 | $ | (144,813) | $ | 426,080 | Balance at January 1, 2022 | $ | 20 | $ | 168 | $ | (2) | $ | 575,159 | $ | (9,092) | $ | 4,640 | $ | (144,813) | $ | 426,080 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Employee equity transactions | Employee equity transactions | — | — | — | 502 | 188 | — | — | 690 | Employee equity transactions | — | — | — | 502 | 188 | — | — | 690 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reclassification of stock notes receivable to other assets | Reclassification of stock notes receivable to other assets | — | — | — | — | 1,942 | — | — | 1,942 | Reclassification of stock notes receivable to other assets | — | — | — | — | 1,942 | — | — | 1,942 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | Net income | — | — | — | — | — | — | 16,311 | 16,311 | Net income | — | — | — | — | — | — | 16,311 | 16,311 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss, net of tax | Other comprehensive loss, net of tax | — | — | — | — | — | (16,404) | — | (16,404) | Other comprehensive loss, net of tax | — | — | — | — | — | (16,404) | — | (16,404) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2022 | Balance at March 31, 2022 | $ | 20 | $ | 168 | $ | (2) | $ | 575,661 | $ | (6,962) | $ | (11,764) | $ | (128,502) | $ | 428,619 | Balance at March 31, 2022 | $ | 20 | $ | 168 | $ | (2) | $ | 575,661 | $ | (6,962) | $ | (11,764) | $ | (128,502) | $ | 428,619 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Employee equity transactions | Employee equity transactions | — | — | — | 670 | 20 | — | — | 690 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | Net income | — | — | — | — | — | — | 5,065 | 5,065 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss, net of tax | Other comprehensive loss, net of tax | — | — | — | — | — | (14,767) | — | (14,767) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2022 | Balance at June 30, 2022 | $ | 20 | $ | 168 | $ | (2) | $ | 576,331 | $ | (6,942) | $ | (26,531) | $ | (123,437) | $ | 419,607 |
Three months ended March 31, | Six months ended June 30, | |||||||||||||||||||||||||||
($ in thousands) | ($ in thousands) | 2023 | 2022 | ($ in thousands) | 2023 | 2022 | ||||||||||||||||||||||
Cash flows from operating activities | Cash flows from operating activities | Cash flows from operating activities | ||||||||||||||||||||||||||
Net income | Net income | $ | 15,556 | $ | 16,311 | Net income | $ | 35,008 | $ | 21,376 | ||||||||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities | Adjustments to reconcile net income to net cash provided by operating activities | 91,651 | 29,571 | Adjustments to reconcile net income to net cash provided by operating activities | 73,469 | 42,640 | ||||||||||||||||||||||
Net cash provided by operating activities | Net cash provided by operating activities | 107,207 | 45,882 | Net cash provided by operating activities | 108,477 | 64,016 | ||||||||||||||||||||||
Cash flows from investing activities: | Cash flows from investing activities: | Cash flows from investing activities: | ||||||||||||||||||||||||||
Purchase of fixed maturity securities, available-for-sale | Purchase of fixed maturity securities, available-for-sale | (72,466) | (23,370) | Purchase of fixed maturity securities, available-for-sale | (192,749) | (129,636) | ||||||||||||||||||||||
Purchase of illiquid investments | Purchase of illiquid investments | (286) | (2,376) | Purchase of illiquid investments | (885) | (2,560) | ||||||||||||||||||||||
Purchase of equity securities | Purchase of equity securities | (12,889) | (25,221) | Purchase of equity securities | (19,192) | (33,899) | ||||||||||||||||||||||
Purchase of intangible assets | Purchase of intangible assets | (50) | — | |||||||||||||||||||||||||
Proceeds from (investment in) direct and indirect loans | Proceeds from (investment in) direct and indirect loans | 14,665 | (8,019) | Proceeds from (investment in) direct and indirect loans | 14,032 | (14,411) | ||||||||||||||||||||||
Purchase of property and equipment | Purchase of property and equipment | (614) | (431) | Purchase of property and equipment | (1,198) | (564) | ||||||||||||||||||||||
Sales and maturities of investment securities | Sales and maturities of investment securities | 34,980 | 33,935 | Sales and maturities of investment securities | 60,075 | 51,891 | ||||||||||||||||||||||
Distributions from equity method investments | Distributions from equity method investments | 355 | 1,326 | Distributions from equity method investments | 1,079 | 1,689 | ||||||||||||||||||||||
Change in short-term investments | Change in short-term investments | (166,193) | (38,631) | Change in short-term investments | (69,512) | 45,251 | ||||||||||||||||||||||
Receivable for securities sold | Receivable for securities sold | 3,984 | 5,671 | Receivable for securities sold | 2,767 | 2,992 | ||||||||||||||||||||||
Cash provided by deposit accounting | Cash provided by deposit accounting | 5,038 | 1,518 | Cash provided by deposit accounting | 7,549 | 3,571 | ||||||||||||||||||||||
Other, net | — | 2 | ||||||||||||||||||||||||||
Net cash used in investment activities | Net cash used in investment activities | (193,426) | (55,596) | Net cash used in investment activities | (198,084) | (75,676) | ||||||||||||||||||||||
Cash flows from financing activities: | Cash flows from financing activities: | Cash flows from financing activities: | ||||||||||||||||||||||||||
Repayment of stock notes receivable | 193 | 186 | ||||||||||||||||||||||||||
Employee share purchases | Employee share purchases | 193 | 2,150 | |||||||||||||||||||||||||
Draw on revolving line of credit | Draw on revolving line of credit | 50,000 | — | Draw on revolving line of credit | 50,000 | — | ||||||||||||||||||||||
Repayment of term loan | Repayment of term loan | (50,000) | — | Repayment of term loan | (50,000) | — | ||||||||||||||||||||||
Proceeds from initial public offering | Proceeds from initial public offering | 66,262 | — | Proceeds from initial public offering | 66,262 | — | ||||||||||||||||||||||
Net cash provided by financing activities | Net cash provided by financing activities | 66,455 | 186 | Net cash provided by financing activities | 66,455 | 2,150 | ||||||||||||||||||||||
Net decrease in cash and cash equivalents and restricted cash | Net decrease in cash and cash equivalents and restricted cash | (19,764) | (9,528) | Net decrease in cash and cash equivalents and restricted cash | (23,152) | (9,510) | ||||||||||||||||||||||
Cash and cash equivalents and restricted cash at beginning of period | Cash and cash equivalents and restricted cash at beginning of period | 125,011 | 107,274 | Cash and cash equivalents and restricted cash at beginning of period | 125,011 | 107,274 | ||||||||||||||||||||||
Cash and cash equivalents and restricted cash at end of period | Cash and cash equivalents and restricted cash at end of period | $ | 105,247 | $ | 97,746 | Cash and cash equivalents and restricted cash at end of period | $ | 101,859 | $ | 97,764 | ||||||||||||||||||
Supplemental disclosure of cash flow information: | Supplemental disclosure of cash flow information: | Supplemental disclosure of cash flow information: | ||||||||||||||||||||||||||
Cash paid for interest | Cash paid for interest | $ | 3,145 | $ | 1,124 | Cash paid for interest | $ | 5,194 | $ | 2,366 | ||||||||||||||||||
Cash paid for federal income taxes | Cash paid for federal income taxes | $ | 4,200 | $ | — |
($ in thousands) | ($ in thousands) | Gross Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Allowance for Credit Losses | Fair Value | ($ in thousands) | Gross Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Allowance for Credit Losses | Fair Value | ||||||||||||||||||||||||||||||||||||||||||||||||||||
March 31, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
June 30, 2023 | June 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed maturity securities, available-for-sale: | Fixed maturity securities, available-for-sale: | Fixed maturity securities, available-for-sale: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. government securities | U.S. government securities | $ | 46,347 | $ | 35 | $ | (1,464) | $ | — | $ | 44,918 | U.S. government securities | $ | 45,979 | $ | — | $ | (1,496) | $ | — | $ | 44,483 | ||||||||||||||||||||||||||||||||||||||||||
Corporate securities and miscellaneous | Corporate securities and miscellaneous | 278,980 | 1,571 | (18,117) | — | 262,434 | Corporate securities and miscellaneous | 313,127 | 800 | (20,367) | — | 293,560 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Municipal securities | Municipal securities | 73,232 | 152 | (6,045) | — | 67,339 | Municipal securities | 77,469 | 88 | (6,584) | — | 70,973 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Residential mortgage-backed securities | Residential mortgage-backed securities | 146,830 | 458 | (13,398) | — | 133,890 | Residential mortgage-backed securities | 214,187 | 144 | (17,385) | — | 196,946 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial mortgage-backed securities | Commercial mortgage-backed securities | 55,183 | 228 | (3,229) | — | 52,182 | Commercial mortgage-backed securities | 19,805 | — | (1,826) | — | 17,979 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Asset-backed securities | Asset-backed securities | 117,823 | 213 | (5,662) | — | 112,374 | Asset-backed securities | 149,195 | 121 | (5,766) | — | 143,550 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Total fixed maturity securities, available-for-sale | Total fixed maturity securities, available-for-sale | $ | 718,395 | $ | 2,657 | $ | (47,915) | $ | — | $ | 673,137 | Total fixed maturity securities, available-for-sale | $ | 819,762 | $ | 1,153 | $ | (53,424) | $ | — | $ | 767,491 | ||||||||||||||||||||||||||||||||||||||||||
Fixed maturity securities, held-to-maturity: | Fixed maturity securities, held-to-maturity: | Fixed maturity securities, held-to-maturity: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Asset-backed securities | Asset-backed securities | $ | 48,537 | $ | — | $ | (3,724) | $ | (321) | $ | 44,492 | Asset-backed securities | $ | 47,504 | $ | — | $ | (4,585) | $ | (332) | $ | 42,587 | ||||||||||||||||||||||||||||||||||||||||||
Total fixed maturity securities, held-to-maturity | Total fixed maturity securities, held-to-maturity | $ | 48,537 | $ | — | $ | (3,724) | $ | (321) | $ | 44,492 | Total fixed maturity securities, held-to-maturity | $ | 47,504 | $ | — | $ | (4,585) | $ | (332) | $ | 42,587 |
($ in thousands) | Gross Amortized Cost | Gross Unrealized Gains | Gross Unrealized Loss | Fair Value | ||||||||||||||||||||||
December 31, 2022 | ||||||||||||||||||||||||||
Fixed maturity securities, available-for-sale: | ||||||||||||||||||||||||||
U.S. government securities | $ | 50,416 | $ | 1 | $ | (1,876) | $ | 48,541 | ||||||||||||||||||
Corporate securities and miscellaneous | 255,116 | 767 | (20,754) | 235,129 | ||||||||||||||||||||||
Municipal securities | 65,836 | 24 | (8,133) | 57,727 | ||||||||||||||||||||||
Residential mortgage-backed securities | 134,844 | 218 | (15,206) | 119,856 | ||||||||||||||||||||||
Commercial mortgage-backed securities | 40,129 | 50 | (3,684) | 36,495 | ||||||||||||||||||||||
Asset-backed securities | 116,275 | 91 | (6,542) | 109,824 | ||||||||||||||||||||||
Total fixed maturity securities, available-for-sale | $ | 662,616 | $ | 1,151 | $ | (56,195) | $ | 607,572 | ||||||||||||||||||
Fixed maturity securities, held-to-maturity: | ||||||||||||||||||||||||||
Asset-backed securities | $ | 52,467 | $ | — | $ | (5,696) | $ | 46,771 | ||||||||||||||||||
Total fixed maturity securities, held-to-maturity | $ | 52,467 | $ | — | $ | (5,696) | $ | 46,771 | ||||||||||||||||||
($ in thousands) | ($ in thousands) | Amortized Cost | Fair Value | ($ in thousands) | Amortized Cost | Fair Value | ||||||||||||||||||||||
Due in less than one year | Due in less than one year | $ | 27,656 | $ | 26,956 | Due in less than one year | $ | 27,565 | $ | 26,980 | ||||||||||||||||||
Due after one year through five years | Due after one year through five years | 214,722 | 205,835 | Due after one year through five years | 233,387 | 221,664 | ||||||||||||||||||||||
Due after five years through ten years | Due after five years through ten years | 108,566 | 99,254 | Due after five years through ten years | 125,247 | 114,920 | ||||||||||||||||||||||
Due after ten years | Due after ten years | 47,615 | 42,646 | Due after ten years | 50,376 | 45,452 | ||||||||||||||||||||||
Mortgage-backed securities | Mortgage-backed securities | 202,013 | 186,072 | Mortgage-backed securities | 233,992 | 214,925 | ||||||||||||||||||||||
Asset-backed securities | Asset-backed securities | 117,823 | 112,374 | Asset-backed securities | 149,195 | 143,550 | ||||||||||||||||||||||
Total | Total | $ | 718,395 | $ | 673,137 | Total | $ | 819,762 | $ | 767,491 |
Less than 12 Months | 12 Months or More | Total | Less than 12 Months | 12 Months or More | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
($ in thousands) | ($ in thousands) | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | ($ in thousands) | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
March 31, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
June 30, 2023 | June 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed maturity securities, available-for-sale: | Fixed maturity securities, available-for-sale: | Fixed maturity securities, available-for-sale: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. government securities | U.S. government securities | $ | 19,722 | $ | (443) | $ | 18,777 | $ | (1,021) | $ | 38,499 | $ | (1,464) | U.S. government securities | $ | 18,718 | $ | (428) | $ | 25,765 | $ | (1,068) | $ | 44,483 | $ | (1,496) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate securities and miscellaneous | Corporate securities and miscellaneous | 107,567 | (4,059) | 98,368 | (14,058) | 205,935 | (18,117) | Corporate securities and miscellaneous | 126,693 | (3,796) | 130,980 | (16,571) | 257,673 | (20,367) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Municipal securities | Municipal securities | 35,247 | (1,764) | 22,752 | (4,281) | 57,999 | (6,045) | Municipal securities | 30,290 | (1,079) | 34,000 | (5,505) | 64,290 | (6,584) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Residential mortgage-backed securities | Residential mortgage-backed securities | 41,507 | (1,919) | 65,869 | (11,479) | 107,376 | (13,398) | Residential mortgage-backed securities | 111,829 | (3,663) | 76,276 | (13,722) | 188,105 | (17,385) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial mortgage-backed securities | Commercial mortgage-backed securities | 28,658 | (869) | 11,393 | (2,360) | 40,051 | (3,229) | Commercial mortgage-backed securities | 7,688 | (206) | 10,291 | (1,620) | 17,979 | (1,826) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Asset-backed securities | Asset-backed securities | 62,813 | (2,636) | 35,681 | (3,026) | 98,494 | (5,662) | Asset-backed securities | 72,084 | (1,367) | 62,502 | (4,399) | 134,586 | (5,766) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total fixed maturity securities, available-for-sale | Total fixed maturity securities, available-for-sale | 295,514 | (11,690) | 252,840 | (36,225) | 548,354 | (47,915) | Total fixed maturity securities, available-for-sale | 367,302 | (10,539) | 339,814 | (42,885) | 707,116 | (53,424) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed maturity securities, held-to-maturity: | Fixed maturity securities, held-to-maturity: | Fixed maturity securities, held-to-maturity: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Asset-backed securities | Asset-backed securities | 1,624 | (19) | 42,868 | (3,705) | 44,492 | (3,724) | Asset-backed securities | 1,845 | (22) | 40,742 | (4,563) | 42,587 | (4,585) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total fixed maturity securities, held-to-maturity: | Total fixed maturity securities, held-to-maturity: | 1,624 | (19) | 42,868 | (3,705) | 44,492 | (3,724) | Total fixed maturity securities, held-to-maturity: | 1,845 | (22) | 40,742 | (4,563) | 42,587 | (4,585) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | Total | $ | 297,138 | $ | (11,709) | $ | 295,708 | $ | (39,930) | $ | 592,846 | $ | (51,639) | Total | $ | 369,147 | $ | (10,561) | $ | 380,556 | $ | (47,448) | $ | 749,703 | $ | (58,009) |
Less than 12 Months | 12 Months or More | Total | ||||||||||||||||||||||||||||||||||||
($ in thousands) | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | ||||||||||||||||||||||||||||||||
December 31, 2022 | ||||||||||||||||||||||||||||||||||||||
Fixed maturity securities, available-for-sale: | ||||||||||||||||||||||||||||||||||||||
U.S. government securities | $ | 28,966 | $ | (603) | $ | 18,577 | $ | (1,273) | $ | 47,543 | $ | (1,876) | ||||||||||||||||||||||||||
Corporate securities and miscellaneous | 171,506 | (16,063) | 34,283 | (4,691) | 205,789 | (20,754) | ||||||||||||||||||||||||||||||||
Municipal securities | 51,701 | (7,236) | 3,689 | (897) | 55,390 | (8,133) | ||||||||||||||||||||||||||||||||
Residential mortgage-backed securities | 56,246 | (4,152) | 52,778 | (11,054) | 109,024 | (15,206) | ||||||||||||||||||||||||||||||||
Commercial mortgage-backed securities | 25,836 | (1,488) | 8,583 | (2,196) | 34,419 | (3,684) | ||||||||||||||||||||||||||||||||
Asset-backed securities | 74,684 | (3,351) | 25,820 | (3,191) | 100,504 | (6,542) | ||||||||||||||||||||||||||||||||
Total fixed maturity securities, available-for-sale | 408,939 | (32,893) | 143,730 | (23,302) | 552,669 | (56,195) | ||||||||||||||||||||||||||||||||
Fixed maturity securities, held-to-maturity: | ||||||||||||||||||||||||||||||||||||||
Asset-backed securities | 46,771 | (5,696) | — | — | 46,771 | (5,696) | ||||||||||||||||||||||||||||||||
Total fixed maturity securities, held-to-maturity: | 46,771 | (5,696) | — | — | 46,771 | (5,696) | ||||||||||||||||||||||||||||||||
Total | $ | 455,710 | $ | (38,589) | $ | 143,730 | $ | (23,302) | $ | 599,440 | $ | (61,891) | ||||||||||||||||||||||||||
Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||
($ in thousands) | ($ in thousands) | 2023 | 2022 | ($ in thousands) | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||||||||||||||||||||||
Gross realized gains | Gross realized gains | Gross realized gains | ||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed maturity securities, available-for sale | Fixed maturity securities, available-for sale | $ | 493 | $ | 16 | Fixed maturity securities, available-for sale | $ | 211 | $ | 94 | $ | 704 | $ | 110 | ||||||||||||||||||||||||||||||||||||||
Equity securities | Equity securities | 1,227 | 1,830 | Equity securities | 814 | 1,046 | 2,041 | 2,877 | ||||||||||||||||||||||||||||||||||||||||||||
Other | Other | 1 | 31 | Other | — | 5 | 1 | 36 | ||||||||||||||||||||||||||||||||||||||||||||
Total | Total | 1,721 | 1,877 | Total | 1,025 | 1,145 | 2,746 | 3,023 | ||||||||||||||||||||||||||||||||||||||||||||
Gross realized losses | Gross realized losses | Gross realized losses | ||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed maturity securities, available-for sale | Fixed maturity securities, available-for sale | (237) | (276) | Fixed maturity securities, available-for sale | (218) | (217) | (456) | (492) | ||||||||||||||||||||||||||||||||||||||||||||
Equity securities | Equity securities | (4,289) | (654) | Equity securities | (472) | (783) | (4,761) | (1,438) | ||||||||||||||||||||||||||||||||||||||||||||
Other | Other | (1) | (16) | Other | (1) | (5) | (1) | (22) | ||||||||||||||||||||||||||||||||||||||||||||
Total | Total | (4,527) | (946) | Total | (691) | (1,005) | (5,218) | (1,952) | ||||||||||||||||||||||||||||||||||||||||||||
Net unrealized gains (losses) on investments | Net unrealized gains (losses) on investments | Net unrealized gains (losses) on investments | ||||||||||||||||||||||||||||||||||||||||||||||||||
Equity securities | Equity securities | 3,745 | (5,369) | Equity securities | 5,038 | (14,514) | 8,783 | (19,883) | ||||||||||||||||||||||||||||||||||||||||||||
Mortgage loans | Mortgage loans | 22 | — | Mortgage loans | (21) | — | 1 | — | ||||||||||||||||||||||||||||||||||||||||||||
Net investment gains (losses) | Net investment gains (losses) | $ | 961 | $ | (4,438) | Net investment gains (losses) | $ | 5,351 | $ | (14,374) | $ | 6,312 | $ | (18,812) |
($ in thousands) | ($ in thousands) | 2023 | 2022 | ($ in thousands) | 2023 | 2022 | ||||||||||||||||||||||
Fixed maturity securities, available-for sale | Fixed maturity securities, available-for sale | $ | 8,392 | $ | 7,575 | Fixed maturity securities, available-for sale | $ | 19,363 | $ | 7,590 | ||||||||||||||||||
Equity securities | Equity securities | 13,325 | 11,966 | Equity securities | 17,583 | 19,981 |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||
($ in thousands) | ($ in thousands) | 2023 | 2022 | ($ in thousands) | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||||||||||||||||||||||
Income: | Income: | Income: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed maturity securities, available-for sale | Fixed maturity securities, available-for sale | $ | 6,676 | $ | 3,224 | Fixed maturity securities, available-for sale | $ | 7,583 | $ | 3,967 | $ | 14,259 | $ | 7,191 | ||||||||||||||||||||||||||||||||||||||
Fixed maturity securities, held-to-maturity | Fixed maturity securities, held-to-maturity | 1,003 | 1,937 | Fixed maturity securities, held-to-maturity | 1,251 | 1,405 | 2,254 | 3,342 | ||||||||||||||||||||||||||||||||||||||||||||
Equity securities | Equity securities | 726 | 738 | Equity securities | 1,044 | 1,001 | 1,770 | 1,739 | ||||||||||||||||||||||||||||||||||||||||||||
Equity method investments | Equity method investments | (4,664) | 9,210 | Equity method investments | (2,104) | 2,243 | (6,768) | 11,475 | ||||||||||||||||||||||||||||||||||||||||||||
Mortgage loans | Mortgage loans | 1,473 | 818 | Mortgage loans | 1,275 | 964 | 2,748 | 1,782 | ||||||||||||||||||||||||||||||||||||||||||||
Indirect loans | Indirect loans | (1,319) | 1,657 | Indirect loans | (1,929) | 3,074 | (3,248) | 4,732 | ||||||||||||||||||||||||||||||||||||||||||||
Short-term investments and cash | Short-term investments and cash | 1,789 | 27 | Short-term investments and cash | 3,186 | 183 | 4,975 | 210 | ||||||||||||||||||||||||||||||||||||||||||||
Other | Other | (20) | 7 | Other | 29 | (2) | 9 | (18) | ||||||||||||||||||||||||||||||||||||||||||||
Total investment income | Total investment income | 5,664 | 17,618 | Total investment income | 10,335 | 12,835 | 15,999 | 30,453 | ||||||||||||||||||||||||||||||||||||||||||||
Investment expenses | Investment expenses | (1,018) | (2,469) | Investment expenses | (1,752) | (2,305) | (2,770) | (4,774) | ||||||||||||||||||||||||||||||||||||||||||||
Net investment income | Net investment income | $ | 4,646 | $ | 15,149 | Net investment income | $ | 8,583 | $ | 10,530 | $ | 13,229 | $ | 25,679 |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||
($ in thousands) | ($ in thousands) | 2023 | 2022 | ($ in thousands) | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||||||||||||||||||||||
Fixed maturity securities | Fixed maturity securities | $ | 9,786 | $ | (20,764) | Fixed maturity securities | $ | (7,013) | $ | (18,692) | $ | 2,773 | $ | (39,457) | ||||||||||||||||||||||||||||||||||||||
Deferred income taxes | Deferred income taxes | (2,045) | 4,360 | Deferred income taxes | 1,473 | 3,925 | (572) | 8,286 | ||||||||||||||||||||||||||||||||||||||||||||
Total | Total | $ | 7,741 | $ | (16,404) | Total | $ | (5,540) | $ | (14,767) | $ | 2,201 | $ | (31,171) |
High | % | |||||||
Low | % | |||||||
Weighted average | % | |||||||
March 31, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
June 30, 2023 | June 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||
($ in thousands) | ($ in thousands) | Level 1 | Level 2 | Level 3 | Total | ($ in thousands) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||||||||||||||||||||
Fixed maturity securities, available-for-sale: | Fixed maturity securities, available-for-sale: | Fixed maturity securities, available-for-sale: | ||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. government securities | U.S. government securities | $ | 44,918 | $ | — | $ | — | $ | 44,918 | U.S. government securities | $ | 44,483 | $ | — | $ | — | $ | 44,483 | ||||||||||||||||||||||||||||||||||
Corporate securities and miscellaneous | Corporate securities and miscellaneous | — | 262,434 | — | 262,434 | Corporate securities and miscellaneous | — | 293,560 | — | 293,560 | ||||||||||||||||||||||||||||||||||||||||||
Municipal securities | Municipal securities | — | 67,339 | — | 67,339 | Municipal securities | — | 70,973 | — | 70,973 | ||||||||||||||||||||||||||||||||||||||||||
Residential mortgage-backed securities | Residential mortgage-backed securities | — | 133,890 | — | 133,890 | Residential mortgage-backed securities | — | 196,946 | — | 196,946 | ||||||||||||||||||||||||||||||||||||||||||
Commercial mortgage-backed securities | Commercial mortgage-backed securities | — | 52,182 | — | 52,182 | Commercial mortgage-backed securities | — | 17,979 | — | 17,979 | ||||||||||||||||||||||||||||||||||||||||||
Asset-backed securities | Asset-backed securities | — | 112,374 | — | 112,374 | Asset-backed securities | — | 143,550 | — | 143,550 | ||||||||||||||||||||||||||||||||||||||||||
Total fixed maturity securities, available-for-sale | Total fixed maturity securities, available-for-sale | 44,918 | 628,219 | — | 673,137 | Total fixed maturity securities, available-for-sale | 44,483 | 723,008 | — | 767,491 | ||||||||||||||||||||||||||||||||||||||||||
Fixed maturity securities, held-to-maturity: | Fixed maturity securities, held-to-maturity: | Fixed maturity securities, held-to-maturity: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Asset-backed securities | Asset-backed securities | — | — | 44,492 | 44,492 | Asset-backed securities | — | — | 42,587 | 42,587 | ||||||||||||||||||||||||||||||||||||||||||
Total fixed maturity securities, held-to-maturity | Total fixed maturity securities, held-to-maturity | — | — | 44,492 | 44,492 | Total fixed maturity securities, held-to-maturity | — | — | 42,587 | 42,587 | ||||||||||||||||||||||||||||||||||||||||||
Common stocks: | Common stocks: | Common stocks: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Consumer discretionary | Consumer discretionary | 1,965 | — | — | 1,965 | Consumer discretionary | 1,963 | — | — | 1,963 | ||||||||||||||||||||||||||||||||||||||||||
Consumer staples | Consumer staples | 13,116 | — | — | 13,116 | Consumer staples | 14,792 | — | — | 14,792 | ||||||||||||||||||||||||||||||||||||||||||
Energy | Energy | 2,947 | — | — | 2,947 | Energy | 3,008 | — | — | 3,008 | ||||||||||||||||||||||||||||||||||||||||||
Finance | Finance | 19,088 | — | — | 19,088 | Finance | 20,890 | — | — | 20,890 | ||||||||||||||||||||||||||||||||||||||||||
Industrial | Industrial | 11,244 | — | — | 11,244 | Industrial | 11,501 | — | — | 11,501 | ||||||||||||||||||||||||||||||||||||||||||
Information technology | Information technology | 2,912 | — | — | 2,912 | Information technology | 3,599 | — | — | 3,599 | ||||||||||||||||||||||||||||||||||||||||||
Materials | Materials | 3,253 | — | — | 3,253 | Materials | 3,706 | — | — | 3,706 | ||||||||||||||||||||||||||||||||||||||||||
Other | Other | 2,292 | — | — | 2,292 | Other | 2,215 | — | — | 2,215 | ||||||||||||||||||||||||||||||||||||||||||
Total common stocks | Total common stocks | 56,817 | — | — | 56,817 | Total common stocks | 61,674 | — | — | 61,674 | ||||||||||||||||||||||||||||||||||||||||||
Preferred stocks: | Preferred stocks: | Preferred stocks: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Consumer staples | Consumer staples | 473 | — | 473 | Consumer staples | — | 423 | — | 423 | |||||||||||||||||||||||||||||||||||||||||||
Finance | Finance | 3,979 | — | 3,979 | Finance | — | 4,746 | — | 4,746 | |||||||||||||||||||||||||||||||||||||||||||
Industrial | Industrial | — | 1,135 | — | 1,135 | Industrial | — | 1,067 | — | 1,067 | ||||||||||||||||||||||||||||||||||||||||||
Other | Other | — | 735 | — | 735 | Other | — | 711 | — | 711 | ||||||||||||||||||||||||||||||||||||||||||
Total preferred stocks | Total preferred stocks | — | 6,322 | — | 6,322 | Total preferred stocks | — | 6,947 | — | 6,947 | ||||||||||||||||||||||||||||||||||||||||||
Mutual funds: | Mutual funds: | Mutual funds: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed income | Fixed income | 5,191 | — | — | 5,191 | Fixed income | 5,218 | — | — | 5,218 | ||||||||||||||||||||||||||||||||||||||||||
Equity | Equity | 51,615 | — | — | 51,615 | Equity | 53,549 | — | — | 53,549 | ||||||||||||||||||||||||||||||||||||||||||
Commodity | Commodity | 520 | — | — | 520 | Commodity | 473 | — | — | 473 | ||||||||||||||||||||||||||||||||||||||||||
Total mutual funds | Total mutual funds | 57,326 | — | — | 57,326 | Total mutual funds | 59,240 | — | — | 59,240 | ||||||||||||||||||||||||||||||||||||||||||
Total equity securities | Total equity securities | 114,143 | 6,322 | — | 120,465 | Total equity securities | 120,914 | 6,947 | — | 127,861 | ||||||||||||||||||||||||||||||||||||||||||
Mortgage loans | Mortgage loans | — | — | 42,335 | 42,335 | Mortgage loans | — | — | 32,762 | 32,762 | ||||||||||||||||||||||||||||||||||||||||||
Short-term investments | Short-term investments | 287,351 | — | — | 287,351 | Short-term investments | 190,670 | — | — | 190,670 | ||||||||||||||||||||||||||||||||||||||||||
Total investments | Total investments | $ | 446,412 | $ | 634,541 | $ | 86,827 | $ | 1,167,780 | Total investments | $ | 356,067 | $ | 729,955 | $ | 75,349 | $ | 1,161,371 |
December 31, 2022 | ||||||||||||||||||||||||||
($ in thousands) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||
Fixed maturity securities, available-for-sale: | ||||||||||||||||||||||||||
U.S. government securities | $ | 48,541 | $ | — | $ | — | $ | 48,541 | ||||||||||||||||||
Corporate securities and miscellaneous | — | 235,129 | — | 235,129 | ||||||||||||||||||||||
Municipal securities | — | 57,727 | — | 57,727 | ||||||||||||||||||||||
Residential mortgage-backed securities | — | 119,856 | — | 119,856 | ||||||||||||||||||||||
Commercial mortgage-backed securities | — | 36,495 | — | 36,495 | ||||||||||||||||||||||
Asset-backed securities | — | 109,824 | — | 109,824 | ||||||||||||||||||||||
Total fixed maturity securities, available-for-sale | 48,541 | 559,031 | — | 607,572 | ||||||||||||||||||||||
Fixed maturity securities, held-to-maturity: | ||||||||||||||||||||||||||
Asset-backed securities | — | — | 46,771 | 46,771 | ||||||||||||||||||||||
Total fixed maturity securities, held-to-maturity: | — | — | 46,771 | 46,771 | ||||||||||||||||||||||
Common stocks: | ||||||||||||||||||||||||||
Consumer discretionary | 1,948 | — | — | 1,948 | ||||||||||||||||||||||
Consumer staples | 12,036 | — | — | 12,036 | ||||||||||||||||||||||
Energy | 3,241 | — | — | 3,241 | ||||||||||||||||||||||
Finance | 22,636 | — | — | 22,636 | ||||||||||||||||||||||
Industrial | 9,452 | — | — | 9,452 | ||||||||||||||||||||||
Information technology | 2,284 | — | — | 2,284 | ||||||||||||||||||||||
Materials | 2,820 | — | — | 2,820 | ||||||||||||||||||||||
Other | 1,579 | — | — | 1,579 | ||||||||||||||||||||||
Total common stocks | 55,996 | — | — | 55,996 | ||||||||||||||||||||||
Preferred stocks: | ||||||||||||||||||||||||||
Consumer staples | — | 117 | — | 117 | ||||||||||||||||||||||
Finance | — | 7,085 | — | 7,085 | ||||||||||||||||||||||
Industrial | — | 1,020 | — | 1,020 | ||||||||||||||||||||||
Other | — | 549 | — | 549 | ||||||||||||||||||||||
Total preferred stocks | — | 8,771 | — | 8,771 | ||||||||||||||||||||||
Mutual funds: | ||||||||||||||||||||||||||
Fixed income | 5,068 | — | — | 5,068 | ||||||||||||||||||||||
Equity | 49,773 | — | — | 49,773 | ||||||||||||||||||||||
Commodity | 561 | — | — | 561 | ||||||||||||||||||||||
Total mutual funds | 55,402 | — | — | 55,402 | ||||||||||||||||||||||
Total equity securities | 111,398 | 8,771 | — | 120,169 | ||||||||||||||||||||||
Mortgage loans | — | — | 52,842 | 52,842 | ||||||||||||||||||||||
Short-term investments | 121,158 | — | — | 121,158 | ||||||||||||||||||||||
Total investments | $ | 281,097 | $ | 567,802 | $ | 99,613 | $ | 948,512 | ||||||||||||||||||
($ in thousands) | Mortgage Loans | |||||||
Balance at December 31, 2022 | $ | 52,842 | ||||||
Total gains for the period recognized in net investment gains (losses) | $ | 22 | ||||||
Issuances | $ | 892 | ||||||
Settlements | $ | (11,421) | ||||||
Balance at March 31, 2023 | $ | 42,335 | ||||||
Total losses for the period recognized in net investment gains (losses) attributable to the change in unrealized gains or losses relating to assets held as of period end | $ | (14) | ||||||
Total gains for the period recognized in net investment gains (losses) | $ | (21) | ||||||
Issuances | $ | 30 | ||||||
Settlements | $ | (9,582) | ||||||
Balance at June 30, 2023 | $ | 32,762 | ||||||
Total losses for the period recognized in net investment gains (losses) attributable to the change in unrealized gains or losses relating to assets held as of period end | $ | 3 |
March 31, 2023 | December 31, 2022 | June 30, 2023 | December 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||
($ in thousands) | ($ in thousands) | Carrying Value | Fair Value | Carrying Value | Fair Value | ($ in thousands) | Carrying Value | Fair Value | Carrying Value | Fair Value | ||||||||||||||||||||||||||||||||||||||||||
Notes Payable | Notes Payable | Notes Payable | ||||||||||||||||||||||||||||||||||||||||||||||||||
Term loan, due December 31, 2024 | Term loan, due December 31, 2024 | $ | — | $ | — | $ | 50,000 | $ | 50,000 | Term loan, due December 31, 2024 | $ | — | $ | — | $ | 50,000 | $ | 50,000 | ||||||||||||||||||||||||||||||||||
Revolving credit facility | Revolving credit facility | 50,000 | 50,000 | — | — | Revolving credit facility | 50,000 | 50,000 | — | — | ||||||||||||||||||||||||||||||||||||||||||
Notes payable | Notes payable | $ | 50,000 | $ | 50,000 | $ | 50,000 | $ | 50,000 | Notes payable | $ | 50,000 | $ | 50,000 | $ | 50,000 | $ | 50,000 | ||||||||||||||||||||||||||||||||||
Subordinated Debt | Subordinated Debt | Subordinated Debt | ||||||||||||||||||||||||||||||||||||||||||||||||||
Junior subordinated interest debentures | Junior subordinated interest debentures | $ | 59,149 | $ | 59,794 | $ | 59,137 | $ | 59,794 | Junior subordinated interest debentures | $ | 59,162 | $ | 59,794 | $ | 59,137 | $ | 59,794 | ||||||||||||||||||||||||||||||||||
Unsecured subordinated notes | Unsecured subordinated notes | 19,480 | 18,622 | 19,472 | 18,934 | Unsecured subordinated notes | 19,488 | 18,278 | 19,472 | 18,934 | ||||||||||||||||||||||||||||||||||||||||||
Subordinated debt, net of debt issuance costs | Subordinated debt, net of debt issuance costs | $ | 78,629 | $ | 78,416 | $ | 78,609 | $ | 78,728 | Subordinated debt, net of debt issuance costs | $ | 78,650 | $ | 78,072 | $ | 78,609 | $ | 78,728 |
($ in thousands) | ($ in thousands) | March 31, 2023 | December 31, 2022 | ($ in thousands) | June 30, 2023 | December 31, 2022 | ||||||||||||||||||||||
Commercial | Commercial | $ | 16,075 | $ | 15,309 | |||||||||||||||||||||||
Retail | Retail | $ | 15,568 | $ | 16,516 | Retail | 9,201 | 16,516 | ||||||||||||||||||||
Industrial | — | 6,329 | ||||||||||||||||||||||||||
Commercial | 16,086 | 15,309 | ||||||||||||||||||||||||||
Hospitality | Hospitality | 4,845 | 4,915 | |||||||||||||||||||||||||
Multi-family | Multi-family | 2,596 | 5,593 | Multi-family | 2,641 | 5,593 | ||||||||||||||||||||||
Office | Office | 3,210 | 3,197 | Office | — | 3,197 | ||||||||||||||||||||||
Hospitality | 4,875 | 4,915 | ||||||||||||||||||||||||||
Industrial | Industrial | — | 6,329 | |||||||||||||||||||||||||
$ | 42,335 | $ | 51,859 | $ | 32,762 | $ | 51,859 |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||
($ in thousands) | ($ in thousands) | 2023 | 2022 | ($ in thousands) | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||||||||||||||||||||||
Commercial | Commercial | $ | 555 | $ | 155 | $ | 1,049 | $ | 365 | |||||||||||||||||||||||||||||||||||||||||||
Retail | Retail | $ | 595 | $ | 359 | Retail | 416 | 235 | 1,011 | 479 | ||||||||||||||||||||||||||||||||||||||||||
Hospitality | Hospitality | 132 | 103 | 293 | 148 | |||||||||||||||||||||||||||||||||||||||||||||||
Office | Office | 97 | 134 | 203 | 222 | |||||||||||||||||||||||||||||||||||||||||||||||
Multi-family | Multi-family | 75 | 199 | 192 | 316 | |||||||||||||||||||||||||||||||||||||||||||||||
Commercial | 494 | 210 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Multi-family | 117 | 69 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Office | 106 | 166 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Hospitality | 161 | 14 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Industrial | Industrial | — | 138 | — | 252 | |||||||||||||||||||||||||||||||||||||||||||||||
$ | 1,473 | $ | 818 | $ | 1,275 | $ | 964 | $ | 2,748 | $ | 1,782 |
($ in thousands) | ($ in thousands) | March 31, 2023 | December 31, 2022 | ($ in thousands) | June 30, 2023 | December 31, 2022 | ||||||||||||||||||||||
Arena Special Opportunities Fund, LP units | Arena Special Opportunities Fund, LP units | $ | 41,364 | $ | 44,504 | |||||||||||||||||||||||
JVM Funds LLC units | JVM Funds LLC units | 21,190 | 22,473 | |||||||||||||||||||||||||
Arena SOP LP units | Arena SOP LP units | $ | 6,683 | $ | 8,734 | Arena SOP LP units | 5,956 | 8,734 | ||||||||||||||||||||
Arena Special Opportunities Fund, LP units | 42,701 | 44,504 | ||||||||||||||||||||||||||
RISCOM | RISCOM | 4,342 | 4,037 | |||||||||||||||||||||||||
Hudson Ventures Fund 2 LP units | Hudson Ventures Fund 2 LP units | 3,623 | 3,551 | |||||||||||||||||||||||||
Dowling Capital Partners LP units | Dowling Capital Partners LP units | 2,133 | 1,965 | |||||||||||||||||||||||||
Universa Black Swan LP units | Universa Black Swan LP units | 421 | 1,325 | |||||||||||||||||||||||||
Brewer Lane Ventures Fund II LP units | Brewer Lane Ventures Fund II LP units | 390 | 200 | Brewer Lane Ventures Fund II LP units | 361 | 200 | ||||||||||||||||||||||
Dowling Capital Partners LP units | 2,231 | 1,965 | ||||||||||||||||||||||||||
Hudson Ventures Fund 2 LP units | 3,391 | 3,551 | ||||||||||||||||||||||||||
JVM Funds LLC units | 21,698 | 22,473 | ||||||||||||||||||||||||||
RISCOM | 4,118 | 4,037 | ||||||||||||||||||||||||||
Universa Black Swan LP units | 770 | 1,325 | ||||||||||||||||||||||||||
$ | 81,982 | $ | 86,789 | $ | 79,390 | $ | 86,789 |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||
($ in thousands) | ($ in thousands) | 2023 | 2022 | ($ in thousands) | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||||||||||||||||||||||
Dowling Capital Partners LP units | Dowling Capital Partners LP units | $ | 338 | $ | 41 | $ | 605 | $ | 555 | |||||||||||||||||||||||||||||||||||||||||||
RISCOM | RISCOM | 224 | 808 | 305 | 826 | |||||||||||||||||||||||||||||||||||||||||||||||
Brewer Lane Ventures Fund II LP | Brewer Lane Ventures Fund II LP | (29) | — | (29) | — | |||||||||||||||||||||||||||||||||||||||||||||||
Hudson Ventures Fund II LP units | Hudson Ventures Fund II LP units | (158) | 332 | (413) | 396 | |||||||||||||||||||||||||||||||||||||||||||||||
JVM Funds LLC | JVM Funds LLC | (221) | (955) | (641) | (768) | |||||||||||||||||||||||||||||||||||||||||||||||
Universa Black Swan LP units | Universa Black Swan LP units | (348) | (1,057) | (904) | (1,550) | |||||||||||||||||||||||||||||||||||||||||||||||
Arena SOP LP units | Arena SOP LP units | $ | (2,051) | $ | 6,117 | Arena SOP LP units | (727) | 1,631 | (2,778) | 7,771 | ||||||||||||||||||||||||||||||||||||||||||
Arena Special Opportunities Fund, LP units | Arena Special Opportunities Fund, LP units | (1,730) | 2,804 | Arena Special Opportunities Fund, LP units | (1,183) | 1,443 | (2,913) | 4,245 | ||||||||||||||||||||||||||||||||||||||||||||
Dowling Capital Partners LP units | 267 | 514 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Hudson Ventures Fund 2 LP units | (255) | 64 | ||||||||||||||||||||||||||||||||||||||||||||||||||
JVM Funds LLC | (420) | 186 | ||||||||||||||||||||||||||||||||||||||||||||||||||
RISCOM | 81 | 18 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Universa Black Swan LP units | (556) | (493) | ||||||||||||||||||||||||||||||||||||||||||||||||||
$ | (4,664) | $ | 9,210 | $ | (2,104) | $ | 2,243 | $ | (6,768) | $ | 11,475 |
($ in thousands) | ($ in thousands) | March 31, 2023 | December 31, 2022 | ($ in thousands) | June 30, 2023 | December 31, 2022 | ||||||||||||||||||||||
Brewer Lane Ventures Fund II LP units | Brewer Lane Ventures Fund II LP units | $ | 4,610 | $ | 4,800 | Brewer Lane Ventures Fund II LP units | $ | 4,610 | $ | 4,800 | ||||||||||||||||||
Hudson Ventures Fund 2 LP units | Hudson Ventures Fund 2 LP units | 1,311 | 1,796 | |||||||||||||||||||||||||
Dowling Capital Partners LP units | Dowling Capital Partners LP units | 386 | 386 | Dowling Capital Partners LP units | 386 | 386 | ||||||||||||||||||||||
Hudson Ventures Fund 2 LP units | 1,701 | 1,796 | ||||||||||||||||||||||||||
$ | 6,697 | $ | 6,982 | $ | 6,307 | $ | 6,982 |
($ in thousands) | ($ in thousands) | March 31, 2023 | December 31, 2022 | ($ in thousands) | June 30, 2023 | December 31, 2022 | ||||||||||||||||||||||
Investment in RISCOM: | Investment in RISCOM: | Investment in RISCOM: | ||||||||||||||||||||||||||
Underlying equity | Underlying equity | $ | 2,434 | $ | 2,292 | Underlying equity | $ | 2,719 | $ | 2,292 | ||||||||||||||||||
Difference | Difference | 1,684 | 1,745 | Difference | 1,623 | 1,745 | ||||||||||||||||||||||
Recorded investment balance | Recorded investment balance | $ | 4,118 | $ | 4,037 | Recorded investment balance | $ | 4,342 | $ | 4,037 |
($ in thousands) | ($ in thousands) | March 31, 2023 | December 31, 2022 | ($ in thousands) | June 30, 2023 | December 31, 2022 | ||||||||||||||||||||||
Investment in JVM Funds LLC: | Investment in JVM Funds LLC: | Investment in JVM Funds LLC: | ||||||||||||||||||||||||||
Underlying equity | Underlying equity | $ | 20,828 | $ | 21,565 | Underlying equity | $ | 20,358 | $ | 21,565 | ||||||||||||||||||
Difference | Difference | 870 | 908 | Difference | 832 | 908 | ||||||||||||||||||||||
Recorded investment balance | Recorded investment balance | $ | 21,698 | $ | 22,473 | Recorded investment balance | $ | 21,190 | $ | 22,473 |
March 31, 2023 | December 31, 2022 | June 30, 2023 | December 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||
($ in thousands) | ($ in thousands) | Carrying Value | Unfunded Commitment | Carrying Value | Unfunded Commitment | ($ in thousands) | Carrying Value | Unfunded Commitment | Carrying Value | Unfunded Commitment | ||||||||||||||||||||||||||||||||||||||||||
SMA1 | SMA1 | $ | 34,654 | $ | — | $ | 36,426 | $ | — | SMA1 | $ | 32,867 | $ | — | $ | 36,426 | $ | — | ||||||||||||||||||||||||||||||||||
SMA2 | SMA2 | (1,652) | — | 2,010 | — | SMA2 | 8,779 | — | 2,010 | — | ||||||||||||||||||||||||||||||||||||||||||
Investment in indirect loans and loan collateral | Investment in indirect loans and loan collateral | $ | 33,002 | $ | — | $ | 38,436 | $ | — | Investment in indirect loans and loan collateral | $ | 41,646 | $ | — | $ | 38,436 | $ | — | ||||||||||||||||||||||||||||||||||
(1)The carrying value of SMA2 is negative as of March 31, 2023 due to distribution in-transit. |
($ in thousands) | Allowance for Credit Losses | |||||||||||||
Balance at December 31, 2022 | $ | 629 | ||||||||||||
Cumulative effect of adoption of ASU 2016-13 at January 1, 2023 | — | |||||||||||||
Current period change for estimated uncollectible premiums | 409 | |||||||||||||
Write-offs of uncollectible premiums receivable | (56) | |||||||||||||
Balance at March 31, 2023 | $ | 982 | ||||||||||||
Current period change for estimated uncollectible premiums | 37 | |||||||||||||
Write-offs of uncollectible premiums receivable | (96) | |||||||||||||
Recoveries of amounts previously written off | 18 | |||||||||||||
Balance at June 30, 2023 | $ | 941 | ||||||||||||
A.M. Best Rating | ||||||||
A- and above | % | |||||||
B++ to B+ | 1.4 | |||||||
Not rated | ||||||||
($ in thousands) | Allowance for Credit Losses | |||||||||||||
Balance at December 31, 2022 | $ | — | ||||||||||||
Cumulative effect of adoption of ASU 2016-13 at January 1, 2023 | 2,295 | |||||||||||||
Current period change for estimated uncollectible reinsurance | — | |||||||||||||
Write-offs of uncollectible reinsurance recoverables | — | |||||||||||||
Balance at March 31, 2023 | $ | 2,295 | ||||||||||||
Current period change for estimated uncollectible reinsurance | — | |||||||||||||
Write-offs of uncollectible reinsurance recoverables | — | |||||||||||||
Balance at June 30, 2023 | $ | 2,295 | ||||||||||||
Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||
($ in thousands | ($ in thousands | 2023 | 2022 | ($ in thousands | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||||||||||||||||||||||
Income tax expense | Income tax expense | $ | 4,166 | $ | 4,269 | Income tax expense | $ | 5,564 | $ | 1,292 | $ | 9,730 | $ | 5,561 | ||||||||||||||||||||||||||||||||||||||
Effective tax rate | Effective tax rate | 21.1 | % | 20.7 | % | Effective tax rate | 22.2 | % | 20.3 | % | 21.7 | % | 20.6 | % |
($ in thousands) | ($ in thousands) | 2023 | 2022 | ($ in thousands) | 2023 | 2022 | ||||||||||||||||||||||
Reserves for losses and LAE, beginning of period | Reserves for losses and LAE, beginning of period | $ | 1,141,757 | $ | 979,549 | Reserves for losses and LAE, beginning of period | $ | 1,141,757 | $ | 979,549 | ||||||||||||||||||
Less: reinsurance recoverable on unpaid claims, beginning of period | Less: reinsurance recoverable on unpaid claims, beginning of period | (435,986) | (381,338) | Less: reinsurance recoverable on unpaid claims, beginning of period | (435,986) | (381,338) | ||||||||||||||||||||||
Reserves for losses and LAE, beginning of period, net of reinsurance | Reserves for losses and LAE, beginning of period, net of reinsurance | 705,771 | 598,211 | Reserves for losses and LAE, beginning of period, net of reinsurance | 705,771 | 598,211 | ||||||||||||||||||||||
Incurred, net of reinsurance, related to: | Incurred, net of reinsurance, related to: | Incurred, net of reinsurance, related to: | ||||||||||||||||||||||||||
Current period | Current period | 115,142 | 89,989 | Current period | 240,010 | 181,790 | ||||||||||||||||||||||
Prior years | Prior years | — | — | Prior years | — | — | ||||||||||||||||||||||
Total incurred, net of reinsurance | Total incurred, net of reinsurance | 115,142 | 89,989 | Total incurred, net of reinsurance | 240,010 | 181,790 | ||||||||||||||||||||||
Paid, net of reinsurance, related to: | Paid, net of reinsurance, related to: | Paid, net of reinsurance, related to: | ||||||||||||||||||||||||||
Current period | Current period | 8,744 | 10,605 | Current period | 29,124 | 30,865 | ||||||||||||||||||||||
Prior years | Prior years | 68,745 | 62,959 | Prior years | 133,757 | 110,318 | ||||||||||||||||||||||
Total paid | Total paid | 77,489 | 73,564 | Total paid | 162,881 | 141,183 | ||||||||||||||||||||||
Net reserves for losses and LAE, end of period | Net reserves for losses and LAE, end of period | 743,424 | 614,636 | Net reserves for losses and LAE, end of period | 782,900 | 638,818 | ||||||||||||||||||||||
Plus: reinsurance recoverable on unpaid claims, end of period | Plus: reinsurance recoverable on unpaid claims, end of period | 429,752 | 385,146 | Plus: reinsurance recoverable on unpaid claims, end of period | 441,227 | 397,567 | ||||||||||||||||||||||
Reserves for losses and LAE, end of period | Reserves for losses and LAE, end of period | $ | 1,173,176 | $ | 999,782 | Reserves for losses and LAE, end of period | $ | 1,224,127 | $ | 1,036,385 |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||
($ in thousands) | ($ in thousands) | 2023 | 2022 | ($ in thousands) | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||||||||||||||||||||||
SUA commission revenue | SUA commission revenue | $ | 857 | $ | 624 | SUA commission revenue | $ | 1,385 | $ | 1,361 | $ | 2,242 | $ | 1,503 | ||||||||||||||||||||||||||||||||||||||
SUA fee income | SUA fee income | 456 | (159) | SUA fee income | 805 | 664 | 1,261 | 505 | ||||||||||||||||||||||||||||||||||||||||||||
Other | Other | 179 | (235) | Other | 50 | 35 | 229 | 282 | ||||||||||||||||||||||||||||||||||||||||||||
Total commission and fee income | Total commission and fee income | $ | 1,492 | $ | 230 | Total commission and fee income | $ | 2,240 | $ | 2,060 | $ | 3,732 | $ | 2,290 |
($ in thousands) | 2023 | 2022 | ||||||||||||||||||||||||
Amortization of policy acquisition costs | $ | 21,235 | $ | 13,421 | ||||||||||||||||||||||
Other operating and general expenses | 30,420 | 27,113 | ||||||||||||||||||||||||
Total underwriting, acquisition and insurance expenses | $ | 51,655 | $ | 40,534 | ||||||||||||||||||||||
Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||||||
($ in thousands) | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||
Amortization of policy acquisition costs | $ | 23,136 | $ | 14,714 | $ | 44,371 | $ | 28,135 | ||||||||||||||||||
Other operating and general expenses | 33,547 | 29,669 | 63,967 | 56,783 | ||||||||||||||||||||||
Total underwriting, acquisition and insurance expenses | $ | 56,683 | $ | 44,383 | $ | 108,338 | $ | 84,918 | ||||||||||||||||||
Three months ended June 30, | ||||||||||||||||||||||||||
2023 | 2022 | |||||||||||||||||||||||||
($ in thousands) | Written | Earned | Written | Earned | ||||||||||||||||||||||
Direct premiums | $ | 332,062 | $ | 283,762 | $ | 276,694 | $ | 230,203 | ||||||||||||||||||
Assumed premiums | 89,932 | 48,213 | 49,533 | 25,933 | ||||||||||||||||||||||
Ceded premiums | (208,257) | (137,628) | (137,496) | (110,060) | ||||||||||||||||||||||
Net premiums | $ | 213,737 | $ | 194,347 | $ | 188,731 | $ | 146,076 | ||||||||||||||||||
Ceded losses and LAE incurred | $ | 99,981 | $ | 68,060 | ||||||||||||||||||||||
Six months ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||
($ in thousands) | ($ in thousands) | Written | Earned | Written | Earned | ($ in thousands) | Written | Earned | Written | Earned | ||||||||||||||||||||||||||||||||||||||||||
Direct premiums | Direct premiums | $ | 308,213 | $ | 262,658 | $ | 248,635 | $ | 222,637 | Direct premiums | $ | 640,275 | $ | 546,419 | $ | 525,329 | $ | 452,840 | ||||||||||||||||||||||||||||||||||
Assumed premiums | Assumed premiums | 52,285 | 39,131 | 34,007 | 26,595 | Assumed premiums | 142,217 | 87,345 | 83,540 | 52,529 | ||||||||||||||||||||||||||||||||||||||||||
Ceded premiums | Ceded premiums | (158,357) | (118,958) | (147,241) | (107,506) | Ceded premiums | (366,614) | (256,586) | (284,737) | (217,566) | ||||||||||||||||||||||||||||||||||||||||||
Net premiums | Net premiums | $ | 202,141 | $ | 182,831 | $ | 135,401 | $ | 141,726 | Net premiums | $ | 415,878 | $ | 377,178 | $ | 324,132 | $ | 287,803 | ||||||||||||||||||||||||||||||||||
Ceded losses and LAE incurred | Ceded losses and LAE incurred | $ | 64,794 | $ | 61,527 | Ceded losses and LAE incurred | $ | 164,775 | $ | 129,587 |
($ in thousands) | ($ in thousands) | March 31, 2023 | December 31, 2022 | ($ in thousands) | June 30, 2023 | December 31, 2022 | ||||||||||||||||||||||
Unpaid losses and loss adjustment expenses ceded | $ | 429,752 | $ | 435,986 | ||||||||||||||||||||||||
Paid losses and loss adjustment expense ceded | 107,463 | 107,228 | ||||||||||||||||||||||||||
Ceded unpaid losses and LAE | Ceded unpaid losses and LAE | $ | 441,227 | $ | 435,986 | |||||||||||||||||||||||
Ceded paid losses and LAE | Ceded paid losses and LAE | 115,672 | 107,228 | |||||||||||||||||||||||||
Loss portfolio transfer | Loss portfolio transfer | 35,584 | 38,145 | Loss portfolio transfer | 28,318 | 38,145 | ||||||||||||||||||||||
Allowance for credit losses | Allowance for credit losses | (2,295) | — | Allowance for credit losses | (2,295) | — | ||||||||||||||||||||||
Reinsurance recoverables | Reinsurance recoverables | $ | 570,504 | $ | 581,359 | Reinsurance recoverables | $ | 582,922 | $ | 581,359 | ||||||||||||||||||
Ceded unearned premium | Ceded unearned premium | $ | 197,044 | $ | 157,645 | Ceded unearned premium | $ | 267,672 | $ | 157,645 |
Award Payout Range | Requisite Service Period | Target Stock and Stock Units | ||||||||||||||||||
Market condition awards | 0%–150% | 3 years | 37,622 | |||||||||||||||||
Performance condition awards | 0%–150% | 3 years | ||||||||||||||||||
Service condition awards | N/A | 1–4 years | ||||||||||||||||||
Stock options | N/A | 3–4 years | 759,990 | |||||||||||||||||
Market condition awards | 0%–150% | 3 years | 28,495 | |||||||||||||||||
Performance condition awards | 0%–150% | 3 years | ||||||||||||||||||
Service condition awards | N/A | 1–3 years | ||||||||||||||||||
Weighted-Average Exercise Price | Stock | Weighted-Average Exercise Price | Stock | |||||||||||||||||||||||||
Outstanding at January 1, 2023 | Outstanding at January 1, 2023 | — | Outstanding at January 1, 2023 | — | ||||||||||||||||||||||||
Granted | Granted | $ | 15.00 | 759,990 | Granted | $ | 15.00 | 759,990 | ||||||||||||||||||||
Exercised | Exercised | — | Exercised | — | ||||||||||||||||||||||||
Forfeited | Forfeited | — | Forfeited | — | ||||||||||||||||||||||||
Outstanding at March 31, 2023 | $ | 15.00 | 759,990 | |||||||||||||||||||||||||
Outstanding at June 30, 2023 | Outstanding at June 30, 2023 | 759,990 |
Weighted-Average Grant-Date Fair Value | Stock and Stock Units | Weighted-Average Grant-Date Fair Value | Stock and Stock Units | |||||||||||||||||||||||||
Non-vested at January 1, 2023 | Non-vested at January 1, 2023 | $ | 12.55 | 419,896 | Non-vested at January 1, 2023 | $ | 12.55 | 419,896 | ||||||||||||||||||||
Granted | Granted | 15.85 | 1,073,494 | Granted | 16.00 | 1,092,554 | ||||||||||||||||||||||
Vested | Vested | 12.91 | (32,496) | Vested | 12.91 | (32,496) | ||||||||||||||||||||||
Forfeited | Forfeited | 15.10 | (7,459) | Forfeited | 15.07 | (25,176) | ||||||||||||||||||||||
Non-vested at March 31, 2023 | $ | 14.97 | 1,453,435 | |||||||||||||||||||||||||
Non-vested at June 30, 2023 | Non-vested at June 30, 2023 | $ | 15.08 | 1,454,778 | ||||||||||||||||||||||||
Non-vested at January 1, 2022 | Non-vested at January 1, 2022 | $ | 13.23 | 375,643 | Non-vested at January 1, 2022 | $ | 13.23 | 375,643 | ||||||||||||||||||||
Granted | Granted | 13.16 | 191,691 | Granted | 13.16 | 192,411 | ||||||||||||||||||||||
Vested | Vested | 12.47 | (55,851) | Vested | 15.87 | (113,625) | ||||||||||||||||||||||
Forfeited | Forfeited | $ | — | — | Forfeited | 12.69 | (1,950) | |||||||||||||||||||||
Non-vested at March 31, 2022 | $ | 13.28 | 511,483 | |||||||||||||||||||||||||
Non-vested at June 30, 2022 | Non-vested at June 30, 2022 | $ | 12.54 | 452,479 |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||
($ in thousands, except for share and per share amounts) | ($ in thousands, except for share and per share amounts) | 2023 | 2022 | ($ in thousands, except for share and per share amounts) | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||||||||||||||||||||||
Numerator | Numerator | Numerator | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | Net income | $ | 15,556 | $ | 16,311 | Net income | $ | 19,452 | $ | 5,065 | $ | 35,008 | $ | 21,376 | ||||||||||||||||||||||||||||||||||||||
Less: Undistributed income allocated to participating securities | Less: Undistributed income allocated to participating securities | (1,274) | (7,823) | Less: Undistributed income allocated to participating securities | — | (2,437) | (1,402) | (10,283) | ||||||||||||||||||||||||||||||||||||||||||||
Net income attributable to common shareholders (numerator for basic earnings per share) | 14,282 | 8,488 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net income attributable to common stockholders (numerator for basic earnings per share) | Net income attributable to common stockholders (numerator for basic earnings per share) | 19,452 | 2,628 | 33,606 | 11,093 | |||||||||||||||||||||||||||||||||||||||||||||||
Add back: Undistributed income allocated to participating securities | Add back: Undistributed income allocated to participating securities | 1,274 | 7,823 | Add back: Undistributed income allocated to participating securities | — | 2,437 | 1,402 | 10,283 | ||||||||||||||||||||||||||||||||||||||||||||
Net income (numerator for diluted earnings per share under the two-class method) | Net income (numerator for diluted earnings per share under the two-class method) | $ | 15,556 | $ | 16,311 | Net income (numerator for diluted earnings per share under the two-class method) | $ | 19,452 | $ | 5,065 | $ | 35,008 | $ | 21,376 | ||||||||||||||||||||||||||||||||||||||
Denominator | Denominator | Denominator | ||||||||||||||||||||||||||||||||||||||||||||||||||
Basic weighted-average common shares | Basic weighted-average common shares | 32,848,243 | 16,376,720 | Basic weighted-average common shares | 36,603,779 | 16,449,810 | 34,746,874 | 16,449,810 | ||||||||||||||||||||||||||||||||||||||||||||
Preferred shares (if converted method) | Preferred shares (if converted method) | 2,931,256 | 15,092,585 | Preferred shares (if converted method) | — | 15,249,373 | 1,449,343 | 15,249,373 | ||||||||||||||||||||||||||||||||||||||||||||
Contingently issuable instruments (treasury stock method) | Contingently issuable instruments (treasury stock method) | 708,746 | 714,185 | Contingently issuable instruments (treasury stock method) | 763,590 | 524,165 | 740,396 | 527,525 | ||||||||||||||||||||||||||||||||||||||||||||
Market condition awards (contingently issuable) | Market condition awards (contingently issuable) | 87,750 | 40,460 | Market condition awards (contingently issuable) | 85,979 | 112,454 | 73,033 | 99,393 | ||||||||||||||||||||||||||||||||||||||||||||
Performance awards (contingently issuable) | Performance awards (contingently issuable) | 38,441 | 32,362 | Performance awards (contingently issuable) | 73,087 | 58,184 | 41,348 | 49,375 | ||||||||||||||||||||||||||||||||||||||||||||
Restricted stock units (treasury stock method) | Restricted stock units (treasury stock method) | 318,421 | 155,995 | Restricted stock units (treasury stock method) | 525,999 | 266,330 | 397,950 | 224,771 | ||||||||||||||||||||||||||||||||||||||||||||
Options (treasury stock method) | Options (treasury stock method) | 19,216 | — | Options (treasury stock method) | 91,151 | — | 54,970 | — | ||||||||||||||||||||||||||||||||||||||||||||
Diluted weighted-average common share equivalents | Diluted weighted-average common share equivalents | 36,952,073 | 32,412,307 | Diluted weighted-average common share equivalents | 38,143,585 | 32,660,316 | 37,503,914 | 32,600,247 | ||||||||||||||||||||||||||||||||||||||||||||
Basic earnings per share | Basic earnings per share | $ | 0.43 | $ | 0.52 | Basic earnings per share | $ | 0.53 | $ | 0.16 | $ | 0.97 | $ | 0.67 | ||||||||||||||||||||||||||||||||||||||
Diluted earnings per share | Diluted earnings per share | $ | 0.42 | $ | 0.50 | Diluted earnings per share | $ | 0.51 | $ | 0.16 | $ | 0.93 | $ | 0.66 |
2023 | 2022 | |||||||||||||||||||||||||
Contingently issuable instruments (treasury stock method) | 345,764 | — | ||||||||||||||||||||||||
Market condition awards (contingently issuable) | 13,795 | — | ||||||||||||||||||||||||
Performance awards (contingently issuable) | 40,080 | — | ||||||||||||||||||||||||
Restricted stock units (treasury stock method) | 390,076 | — | ||||||||||||||||||||||||
Options (treasury stock method) | 333,551 | — | ||||||||||||||||||||||||
Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||
Contingently issuable instruments (treasury stock method) | — | 58 | — | — | ||||||||||||||||||||||
Market condition awards (contingently issuable) | — | — | 25,774 | — | ||||||||||||||||||||||
Performance awards (contingently issuable) | 1,014 | — | 68,585 | — | ||||||||||||||||||||||
Restricted stock units (treasury stock method) | 922 | — | 237,125 | — | ||||||||||||||||||||||
Options (treasury stock method) | 315 | — | 357,059 | — | ||||||||||||||||||||||
Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||||||||||||||||||||||||||
Common shares | Common shares | 1,054,510 | 183,604 | Common shares | 1,054,510 | 83,811 | 1,054,510 | 83,811 | ||||||||||||||||||||||||||||||||||||||||||||
Preferred shares, if converted | Preferred shares, if converted | — | 1,216,389 | Preferred shares, if converted | — | 1,059,601 | — | 1,059,601 | ||||||||||||||||||||||||||||||||||||||||||||
Total | Total | 1,054,510 | 1,399,993 | Total | 1,054,510 | 1,143,412 | 1,054,510 | 1,143,412 |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||
($ in thousands) | ($ in thousands) | 2023 | 2022 | ($ in thousands) | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||||||||||||||||||||||
Net earned premium | Net earned premium | $ | 22,185 | $ | 21,018 | Net earned premium | $ | 19,916 | $ | 22,508 | $ | 42,101 | $ | 43,526 | ||||||||||||||||||||||||||||||||||||||
Commissions | Commissions | 6,853 | 7,348 | Commissions | 6,149 | 5,759 | 13,002 | 13,107 |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
($ in thousands) | ($ in thousands) | 2023 | 2022 | ($ in thousands) | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gross written premiums | Gross written premiums | $ | 360,498 | $ | 282,642 | Gross written premiums | $ | 421,994 | $ | 326,227 | $ | 782,492 | $ | 608,869 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Ceded written premiums | Ceded written premiums | (158,357) | (147,241) | Ceded written premiums | (208,257) | (137,496) | (366,614) | (284,737) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net written premiums | Net written premiums | 202,141 | 135,401 | Net written premiums | $ | 213,737 | $ | 188,731 | $ | 415,878 | $ | 324,132 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Net earned premiums | Net earned premiums | 182,831 | 141,726 | Net earned premiums | $ | 194,347 | $ | 146,076 | $ | 377,178 | $ | 287,803 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Commission and fee income | Commission and fee income | 1,492 | 230 | Commission and fee income | 2,240 | 2,060 | 3,732 | 2,290 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Losses and LAE | Losses and LAE | 114,900 | 89,989 | Losses and LAE | 124,405 | 91,801 | 239,305 | 181,790 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Underwriting, acquisition and insurance expenses | Underwriting, acquisition and insurance expenses | 51,655 | 40,534 | Underwriting, acquisition and insurance expenses | 56,683 | 44,383 | 108,338 | 84,918 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Underwriting income(1) | Underwriting income(1) | $ | 17,768 | $ | 11,433 | Underwriting income(1) | $ | 15,499 | $ | 11,952 | $ | 33,267 | $ | 23,385 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment income | Net investment income | $ | 4,646 | $ | 15,149 | Net investment income | $ | 8,583 | $ | 10,530 | $ | 13,229 | $ | 25,679 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net investment gains (losses) | Net investment gains (losses) | $ | 961 | $ | (4,438) | Net investment gains (losses) | $ | 5,351 | $ | (14,374) | $ | 6,312 | $ | (18,812) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Income before federal income tax | $ | 19,722 | $ | 20,580 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income before income taxes | Income before income taxes | $ | 25,016 | $ | 6,357 | $ | 44,738 | $ | 26,937 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | Net income | $ | 15,556 | $ | 16,311 | Net income | $ | 19,452 | $ | 5,065 | $ | 35,008 | $ | 21,376 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Adjusted operating income(1) | Adjusted operating income(1) | $ | 15,486 | $ | 19,817 | Adjusted operating income(1) | $ | 16,017 | $ | 16,420 | $ | 31,503 | $ | 36,237 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Loss and LAE ratio | Loss and LAE ratio | 62.8 | % | 63.5 | % | Loss and LAE ratio | 64.0 | % | 62.8 | % | 63.4 | % | 63.2 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
Expense ratio | Expense ratio | 27.4 | % | 28.4 | % | Expense ratio | 28.0 | % | 29.0 | % | 27.7 | % | 28.7 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
Combined ratio | Combined ratio | 90.2 | % | 91.9 | % | Combined ratio | 92.0 | % | 91.8 | % | 91.1 | % | 91.9 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
Adjusted loss and LAE ratio(1) | Adjusted loss and LAE ratio(1) | 62.9 | % | 63.5 | % | Adjusted loss and LAE ratio(1) | 64.2 | % | 62.8 | % | 63.6 | % | 63.2 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
Expense ratio | Expense ratio | 27.4 | % | 28.4 | % | Expense ratio | 28.0 | % | 29.0 | % | 27.7 | % | 28.7 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
Adjusted combined ratio(1) | Adjusted combined ratio(1) | 90.3 | % | 91.9 | % | Adjusted combined ratio(1) | 92.2 | % | 91.8 | % | 91.3 | % | 91.9 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
Annualized return on equity | Annualized return on equity | 13.4 | % | 15.3 | % | Annualized return on equity | 15.1 | % | 4.8 | % | 14.8 | % | 10.1 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
Annualized return on tangible equity(1) | Annualized return on tangible equity(1) | 16.6 | % | 19.4 | % | Annualized return on tangible equity(1) | 18.3 | % | 6.1 | % | 18.3 | % | 12.9 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
Annualized adjusted return on equity(1) | Annualized adjusted return on equity(1) | 13.3 | % | 18.5 | % | Annualized adjusted return on equity(1) | 12.4 | % | 15.5 | % | 13.3 | % | 17.1 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
Annualized adjusted return on tangible equity(1) | Annualized adjusted return on tangible equity(1) | 16.5 | % | 23.6 | % | Annualized adjusted return on tangible equity(1) | 15.1 | % | 19.7 | % | 16.5 | % | 21.8 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
(1) See “Reconciliation of Non-GAAP Financial Measures” in this Item 2 | (1) See “Reconciliation of Non-GAAP Financial Measures” in this Item 2 | (1) See “Reconciliation of Non-GAAP Financial Measures” in this Item 2 |
($ in thousands) | 2023 | 2022 | ||||||||||||||||||||||||
Pre-tax | After-tax | Pre-tax | After-tax | |||||||||||||||||||||||
Income as reported | $ | 19,722 | $ | 15,556 | $ | 20,580 | $ | 16,311 | ||||||||||||||||||
Add: | ||||||||||||||||||||||||||
Other expenses | 1,114 | 880 | — | — | ||||||||||||||||||||||
Less: | ||||||||||||||||||||||||||
Net impact of loss portfolio transfer | 242 | 191 | — | — | ||||||||||||||||||||||
Net investment gains (losses) | 961 | 759 | (4,438) | (3,506) | ||||||||||||||||||||||
Adjusted operating income | $ | 19,633 | $ | 15,486 | $ | 25,018 | $ | 19,817 | ||||||||||||||||||
Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||||||||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||||||||||||||||||||||||||
($ in thousands) | Pre-tax | After-tax | Pre-tax | After-tax | Pre-tax | After-tax | Pre-tax | After-tax | ||||||||||||||||||||||||||||||||||||||||||
Income as reported | $ | 25,016 | $ | 19,452 | $ | 6,357 | $ | 5,065 | $ | 44,738 | $ | 35,008 | $ | 26,937 | $ | 21,376 | ||||||||||||||||||||||||||||||||||
Add: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Other expenses | 1,465 | 1,157 | — | — | 2,579 | 2,037 | — | — | ||||||||||||||||||||||||||||||||||||||||||
Less: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net impact of loss portfolio transfer | 462 | 365 | — | — | 704 | 556 | — | — | ||||||||||||||||||||||||||||||||||||||||||
Net investment gains (losses) | 5,351 | 4,227 | (14,374) | (11,355) | 6,312 | 4,986 | (18,812) | (14,861) | ||||||||||||||||||||||||||||||||||||||||||
Adjusted operating income | $ | 20,668 | $ | 16,017 | $ | 20,731 | 16,420 | $ | 40,301 | $ | 31,503 | $ | 45,749 | $ | 36,237 | |||||||||||||||||||||||||||||||||||
Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||||||||||||||||||||
($ in thousands) | ($ in thousands) | 2023 | 2022 | ($ in thousands) | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||||||||||
Income before federal income tax | $ | 19,722 | $ | 20,580 | ||||||||||||||||||||||||||||||||||||
Income before income taxes | Income before income taxes | $ | 25,016 | $ | 6,357 | $ | 44,738 | $ | 26,937 | |||||||||||||||||||||||||||||||
Add: | Add: | Add: | ||||||||||||||||||||||||||||||||||||||
Interest expense | Interest expense | 2,152 | 1,177 | Interest expense | 2,466 | 1,365 | 4,618 | 2,542 | ||||||||||||||||||||||||||||||||
Amortization expense | Amortization expense | 387 | 387 | Amortization expense | 486 | 386 | 873 | 773 | ||||||||||||||||||||||||||||||||
Other expenses | Other expenses | 1,114 | — | Other expenses | 1,465 | — | 2,579 | — | ||||||||||||||||||||||||||||||||
Less: | Less: | Less: | ||||||||||||||||||||||||||||||||||||||
Net investment income | Net investment income | 4,646 | 15,149 | Net investment income | 8,583 | 10,530 | 13,229 | 25,679 | ||||||||||||||||||||||||||||||||
Net investment gains (losses) | Net investment gains (losses) | 961 | (4,438) | Net investment gains (losses) | 5,351 | (14,374) | 6,312 | (18,812) | ||||||||||||||||||||||||||||||||
Underwriting income | Underwriting income | $ | 17,768 | $ | 11,433 | Underwriting income | $ | 15,499 | $ | 11,952 | $ | 33,267 | $ | 23,385 |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||
($ in thousands) | ($ in thousands) | 2023 | 2022 | ($ in thousands) | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||||||||||||||||||||||
Net earned premiums | Net earned premiums | $ | 182,831 | $ | 141,726 | Net earned premiums | $ | 194,347 | $ | 146,076 | $ | 377,178 | $ | 287,803 | ||||||||||||||||||||||||||||||||||||||
Losses and LAE | Losses and LAE | 114,900 | 89,989 | Losses and LAE | 124,405 | 91,801 | 239,305 | 181,790 | ||||||||||||||||||||||||||||||||||||||||||||
Less: Pre-tax net impact of loss portfolio transfer | Less: Pre-tax net impact of loss portfolio transfer | 242 | — | Less: Pre-tax net impact of loss portfolio transfer | 462 | — | 704 | — | ||||||||||||||||||||||||||||||||||||||||||||
Adjusted losses and LAE | Adjusted losses and LAE | $ | 115,142 | $ | 89,989 | Adjusted losses and LAE | $ | 124,867 | $ | 91,801 | $ | 240,009 | $ | 181,790 | ||||||||||||||||||||||||||||||||||||||
Loss ratio | Loss ratio | 62.8 | % | 63.5 | % | Loss ratio | 64.0 | % | 62.8% | 63.4 | % | 63.2 | % | |||||||||||||||||||||||||||||||||||||||
Less: Net impact of LPT | Less: Net impact of LPT | (0.1) | % | 0.0% | Less: Net impact of LPT | (0.2) | % | —% | (0.2) | % | —% | |||||||||||||||||||||||||||||||||||||||||
Adjusted Loss Ratio | Adjusted Loss Ratio | 62.9 | % | 63.5 | % | Adjusted Loss Ratio | 64.2 | % | 62.8 | % | 63.6 | % | 63.2 | % | ||||||||||||||||||||||||||||||||||||||
Combined ratio | Combined ratio | 90.2 | % | 91.9 | % | Combined ratio | 92.0 | % | 91.8 | % | 91.1 | % | 91.9 | % | ||||||||||||||||||||||||||||||||||||||
Less: Net impact of LPT | Less: Net impact of LPT | (0.1) | % | 0.0% | Less: Net impact of LPT | (0.2) | % | —% | (0.2) | % | —% | |||||||||||||||||||||||||||||||||||||||||
Adjusted Combined Ratio | Adjusted Combined Ratio | 90.3 | % | 91.9 | % | Adjusted Combined Ratio | 92.2 | % | 91.8 | % | 91.3 | % | 91.9 | % |
($ in thousands) | ($ in thousands) | 2023 | 2022 | ($ in thousands) | 2023 | 2022 | ||||||||||||||||||||||
Stockholders' equity | Stockholders' equity | $ | 507,146 | $ | 428,619 | Stockholders' equity | $ | 522,678 | $ | 419,607 | ||||||||||||||||||
Less: Goodwill and intangible assets | Less: Goodwill and intangible assets | 89,503 | 90,970 | Less: Goodwill and intangible assets | 89,181 | 90,603 | ||||||||||||||||||||||
Tangible stockholders' equity | Tangible stockholders' equity | $ | 417,643 | $ | 337,649 | Tangible stockholders' equity | $ | 433,497 | $ | 329,004 |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||||||||||||||||||||
($ in thousands) | ($ in thousands) | 2023 | 2022 | ($ in thousands) | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||||||||||
Numerator: adjusted operating income | $ | 15,486 | $ | 19,817 | ||||||||||||||||||||||||||||||||||||
Numerator: annualized adjusted operating income | Numerator: annualized adjusted operating income | $ | 64,068 | $ | 65,682 | $ | 63,006 | $ | 72,475 | |||||||||||||||||||||||||||||||
Denominator: average stockholders’ equity | Denominator: average stockholders’ equity | $ | 467,883 | $ | 427,350 | Denominator: average stockholders’ equity | $ | 514,912 | $ | 424,113 | $ | 471,143 | $ | 422,844 | ||||||||||||||||||||||||||
Adjusted return on equity | 13.3 | % | 18.5 | % | ||||||||||||||||||||||||||||||||||||
Annualized adjusted return on equity | Annualized adjusted return on equity | 12.4 | % | 15.5 | % | 13.3 | % | 17.1 | % |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||||||
($ in thousands) | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||
Numerator: annualized net income | $ | 77,808 | $ | 20,260 | $ | 70,016 | $ | 42,752 | ||||||||||||||||||
Denominator: average tangible stockholders’ equity | $ | 425,570 | $ | 333,327 | $ | 381,251 | $ | 331,874 | ||||||||||||||||||
Annualized return on tangible equity | 18.3 | % | 6.1 | % | 18.3 | % | 12.9 | % | ||||||||||||||||||
($ in thousands) | 2023 | 2022 | ||||||||||||
Numerator: net income | $ | 15,556 | $ | 16,311 | ||||||||||
Denominator: average tangible stockholders’ equity | $ | 377,646 | $ | 336,197 | ||||||||||
Return on tangible equity | 16.6 | % | 19.4 | % | ||||||||||
Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||||||||||||||||||||
($ in thousands) | ($ in thousands) | 2023 | 2022 | ($ in thousands) | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||||||||||
Numerator: adjusted operating income | $ | 15,486 | $ | 19,817 | ||||||||||||||||||||||||||||||||||||
Numerator: annualized adjusted operating income | Numerator: annualized adjusted operating income | $ | 64,068 | $ | 65,682 | $ | 63,006 | $ | 72,475 | |||||||||||||||||||||||||||||||
Denominator: average tangible stockholders’ equity | Denominator: average tangible stockholders’ equity | $ | 377,646 | $ | 336,197 | Denominator: average tangible stockholders’ equity | $ | 425,570 | $ | 333,327 | $ | 381,251 | $ | 331,874 | ||||||||||||||||||||||||||
Adjusted return on tangible equity | 16.5 | % | 23.6 | % | ||||||||||||||||||||||||||||||||||||
Annualized adjusted return on tangible equity | Annualized adjusted return on tangible equity | 15.1 | % | 19.7 | % | 16.5 | % | 21.8 | % | |||||||||||||||||||||||||||||||
15.1 | % |
($ in thousands) | ($ in thousands) | 2023 | 2022 | Change | % Change | ($ in thousands) | 2023 | 2022 | Change | % Change | ||||||||||||||||||||||||||||||||||||||||||
Global Property & Agriculture | Global Property & Agriculture | $ | 74,340 | $ | 53,192 | $ | 21,148 | 39.8 | % | Global Property & Agriculture | $ | 124,080 | $ | 83,565 | $ | 40,515 | 48.5 | % | ||||||||||||||||||||||||||||||||||
Industry Solutions | Industry Solutions | 67,633 | 63,530 | 4,103 | 6.5 | % | Industry Solutions | 79,249 | 73,841 | 5,408 | 7.3 | % | ||||||||||||||||||||||||||||||||||||||||
Programs | Programs | 48,699 | 47,510 | 1,189 | 2.5 | % | Programs | 52,598 | 47,003 | 5,595 | 11.9 | % | ||||||||||||||||||||||||||||||||||||||||
Captives | Captives | 46,080 | 38,045 | 8,035 | 21.1 | % | Captives | 39,283 | 32,121 | 7,162 | 22.3 | % | ||||||||||||||||||||||||||||||||||||||||
Accident & Health | Accident & Health | 36,013 | 32,583 | 3,430 | 10.5 | % | Accident & Health | 37,252 | 31,156 | 6,096 | 19.6 | % | ||||||||||||||||||||||||||||||||||||||||
Professional Lines | Professional Lines | 33,172 | 16,867 | 16,305 | 96.7 | % | Professional Lines | 32,989 | 18,045 | 14,944 | 82.8 | % | ||||||||||||||||||||||||||||||||||||||||
Transactional E&S | Transactional E&S | 29,617 | 11,870 | 17,747 | 149.5 | % | Transactional E&S | 30,632 | 19,464 | 11,168 | 57.4 | % | ||||||||||||||||||||||||||||||||||||||||
Surety | Surety | 24,701 | 16,252 | 8,449 | 52.0 | % | Surety | 26,221 | 19,276 | 6,945 | 36.0 | % | ||||||||||||||||||||||||||||||||||||||||
Total continuing business | Total continuing business | $ | 360,255 | $ | 279,849 | $ | 80,406 | 28.7 | % | Total continuing business | $ | 422,304 | $ | 324,471 | $ | 97,833 | 30.2 | % | ||||||||||||||||||||||||||||||||||
Exited business | Exited business | 243 | 2,793 | (2,550) | (91.3 | %) | Exited business | (310) | 1,756 | (2,066) | (117.7 | %) | ||||||||||||||||||||||||||||||||||||||||
Total gross written premiums | Total gross written premiums | $ | 360,498 | $ | 282,642 | $ | 77,856 | 27.5 | % | Total gross written premiums | $ | 421,994 | $ | 326,227 | $ | 95,767 | 29.4 | % |
($ in thousands) | 2023 | 2022 | Change | % Change | ||||||||||||||||||||||
Global Property & Agriculture | $ | 198,420 | $ | 136,757 | $ | 61,663 | 45.1 | % | ||||||||||||||||||
Industry Solutions | 146,882 | 137,371 | 9,511 | 6.9 | % | |||||||||||||||||||||
Programs | 101,297 | 94,513 | 6,784 | 7.2 | % | |||||||||||||||||||||
Captives | 85,363 | 70,166 | 15,197 | 21.7 | % | |||||||||||||||||||||
Accident & Health | 73,265 | 63,739 | 9,526 | 14.9 | % | |||||||||||||||||||||
Professional Lines | 66,161 | 34,912 | 31,249 | 89.5 | % | |||||||||||||||||||||
Transactional E&S | 60,249 | 31,334 | 28,915 | 92.3 | % | |||||||||||||||||||||
Surety | 50,922 | 35,528 | 15,394 | 43.3 | % | |||||||||||||||||||||
Total continuing business | $ | 782,559 | $ | 604,320 | $ | 178,239 | 29.5 | % | ||||||||||||||||||
Exited business | (67) | 4,549 | (4,616) | (101.5 | %) | |||||||||||||||||||||
Total gross written premiums | $ | 782,492 | $ | 608,869 | $ | 173,623 | 28.5 | % | ||||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||
($ in thousands) | ($ in thousands) | Losses and LAE | % of Net Earned Premiums | Losses and LAE | % of Net Earned Premiums | ($ in thousands) | Losses and LAE | % of Net Earned Premiums | Losses and LAE | % of Net Earned Premiums | ||||||||||||||||||||||||||||||||||||||||||
Losses and LAE: | Losses and LAE: | Losses and LAE: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Non-cat loss and LAE(1) | Non-cat loss and LAE(1) | $ | 111,902 | 61.1 | % | $ | 89,989 | 63.5 | % | Non-cat loss and LAE(1) | $ | 118,062 | 60.7 | % | $ | 91,801 | 62.8 | % | ||||||||||||||||||||||||||||||||||
Cat loss and LAE(1) | Cat loss and LAE(1) | 3,240 | 1.8 | % | — | 0.0 | % | Cat loss and LAE(1) | 6,805 | 3.5 | % | — | 0.0 | % | ||||||||||||||||||||||||||||||||||||||
Prior accident year development - LPT | Prior accident year development - LPT | (242) | (0.1) | % | — | 0.0% | Prior accident year development - LPT | (462) | (0.2) | % | — | 0.0% | ||||||||||||||||||||||||||||||||||||||||
Total losses and LAE | Total losses and LAE | $ | 114,900 | 62.8 | % | $ | 89,989 | 63.5 | % | Total losses and LAE | $ | 124,405 | 64.0 | % | $ | 91,801 | 62.8 | % | ||||||||||||||||||||||||||||||||||
Adjusted losses and LAE(2): | Adjusted losses and LAE(2): | Adjusted losses and LAE(2): | ||||||||||||||||||||||||||||||||||||||||||||||||||
Non-cat loss and LAE(1) | Non-cat loss and LAE(1) | $ | 111,902 | 61.1 | % | $ | 89,989 | 63.5 | % | Non-cat loss and LAE(1) | $ | 118,062 | 60.7 | % | $ | 91,801 | 62.8 | % | ||||||||||||||||||||||||||||||||||
Cat loss and LAE(1) | Cat loss and LAE(1) | 3,240 | 1.8 | % | — | — | % | Cat loss and LAE(1) | 6,805 | 3.5 | % | — | — | % | ||||||||||||||||||||||||||||||||||||||
Total adjusted losses and LAE(2) | Total adjusted losses and LAE(2) | $ | 115,142 | 62.9 | % | $ | 89,989 | 63.5 | % | Total adjusted losses and LAE(2) | $ | 124,867 | 64.2 | % | $ | 91,801 | 62.8 | % | ||||||||||||||||||||||||||||||||||
(1) Current accident year | (1) Current accident year | (1) Current accident year | ||||||||||||||||||||||||||||||||||||||||||||||||||
(2) See "Reconciliation of Non-GAAP Financial Measures" included in this Item 2 | (2) See "Reconciliation of Non-GAAP Financial Measures" included in this Item 2 | (2) See "Reconciliation of Non-GAAP Financial Measures" included in this Item 2 |
2023 | 2022 | |||||||||||||||||||||||||
($ in thousands) | Losses and LAE | % of Net Earned Premiums | Losses and LAE | % of Net Earned Premiums | ||||||||||||||||||||||
Losses and LAE: | ||||||||||||||||||||||||||
Non-cat loss and LAE(1) | $ | 229,964 | 60.9 | % | $ | 181,790 | 63.2 | % | ||||||||||||||||||
Cat loss and LAE(1) | 10,045 | 2.7 | % | — | 0.0 | % | ||||||||||||||||||||
Prior accident year development - LPT | (704) | (0.2) | % | — | 0.0% | |||||||||||||||||||||
Total losses and LAE | $ | 239,305 | 63.4 | % | $ | 181,790 | 63.2 | % | ||||||||||||||||||
Adjusted losses and LAE(2): | ||||||||||||||||||||||||||
Non-cat loss and LAE(1) | $ | 229,964 | 60.9 | % | $ | 181,790 | 63.2 | % | ||||||||||||||||||
Cat loss and LAE(1) | 10,045 | 2.7 | % | — | — | % | ||||||||||||||||||||
Total adjusted losses and LAE(2) | $ | 240,009 | 63.6 | % | $ | 181,790 | 63.2 | % | ||||||||||||||||||
(1) Current accident year | ||||||||||||||||||||||||||
(2) See "Reconciliation of Non-GAAP Financial Measures" included in this Item 2 |
2023 | 2022 | |||||||||||||||||||||||||
($ in thousands) | Expenses | % of Net Earned Premiums | Expenses | % of Net Earned Premiums | ||||||||||||||||||||||
Net policy acquisition expenses | $ | 23,136 | 11.9 | % | $ | 14,714 | 10.1 | % | ||||||||||||||||||
Other operating and general expenses | 33,547 | 17.3 | % | 29,669 | 20.3 | % | ||||||||||||||||||||
Underwriting, acquisition and insurance expenses | 56,683 | 29.2 | % | 44,383 | 30.4 | % | ||||||||||||||||||||
Less: commission and fee income | (2,240) | (1.2 | %) | (2,060) | (1.4 | %) | ||||||||||||||||||||
Total net expenses | $ | 54,443 | 28.0 | % | $ | 42,323 | 29.0 | % | ||||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||
($ in thousands) | ($ in thousands) | Expenses | % of Net Earned Premiums | Expenses | % of Net Earned Premiums | ($ in thousands) | Expenses | % of Net Earned Premiums | Expenses | % of Net Earned Premiums | ||||||||||||||||||||||||||||||||||||||||||
Net policy acquisition expenses | Net policy acquisition expenses | $ | 21,235 | 11.6 | % | $ | 13,421 | 9.5 | % | Net policy acquisition expenses | $ | 44,371 | 11.7 | % | $ | 28,135 | 9.8 | % | ||||||||||||||||||||||||||||||||||
Other operating and general expenses | Other operating and general expenses | 30,420 | 16.6 | % | 27,113 | 19.1 | % | Other operating and general expenses | 63,967 | 17.0 | % | 56,783 | 19.7 | % | ||||||||||||||||||||||||||||||||||||||
Underwriting, acquisition and insurance expenses | Underwriting, acquisition and insurance expenses | 51,655 | 28.2 | % | 40,534 | 28.6 | % | Underwriting, acquisition and insurance expenses | 108,338 | 28.7 | % | 84,918 | 29.5 | % | ||||||||||||||||||||||||||||||||||||||
Less: commission and fee income | Less: commission and fee income | 1,492 | (0.8 | %) | 230 | (0.2 | %) | Less: commission and fee income | (3,732) | (1.0 | %) | (2,290) | (0.8 | %) | ||||||||||||||||||||||||||||||||||||||
Total net expenses | Total net expenses | $ | 50,163 | 27.4 | % | $ | 40,304 | 28.4 | % | Total net expenses | $ | 104,606 | 27.7 | % | $ | 82,628 | 28.7 | % |
2023 | 2022 | |||||||||||||||||||||||||
($ in thousands) | Net Investment Income | Annualized Net Yield | Net Investment Income | Annualized Net Yield | ||||||||||||||||||||||
Short-term and money market investments | $ | 3,142 | 5.3 | % | $ | 143 | 0.4 | % | ||||||||||||||||||
Core fixed income | 6,967 | 3.6 | % | 3,409 | 2.7 | % | ||||||||||||||||||||
Opportunistic fixed income | (2,429) | (5.7) | % | 7,026 | 14.4 | % | ||||||||||||||||||||
Equities | 902 | 2.3 | % | (53) | (0.2) | % | ||||||||||||||||||||
Net investment income(1) | $ | 8,582 | 2.6 | % | $ | 10,525 | 4.2 | % | ||||||||||||||||||
Net unrealized gains (losses) on securities still held | $ | 5,017 | $ | (14,514) | ||||||||||||||||||||||
Net realized gains | 334 | 140 | ||||||||||||||||||||||||
Net investment gains (losses) | $ | 5,351 | $ | (14,374) | ||||||||||||||||||||||
(1) Excludes operating cash of $1 and $5, respectively. |
2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||
($ in thousands) | ($ in thousands) | Net Investment Income | Annualized Net Yield | Net Investment Income | Annualized Net Yield | ($ in thousands) | Net Investment Income | Annualized Net Yield | Net Investment Income | Annualized Net Yield | ||||||||||||||||||||||||||||||||||||||||||
Short-term and money market investments | Short-term and money market investments | $ | 1,780 | 3.5 | % | $ | 3 | — | % | Short-term and money market investments | $ | 4,922 | 6.4 | % | $ | 146 | 0.2 | % | ||||||||||||||||||||||||||||||||||
Core fixed income | Core fixed income | 6,339 | 3.7 | % | 2,987 | 2.7 | % | Core fixed income | 13,306 | 3.6 | % | 6,396 | 2.6 | % | ||||||||||||||||||||||||||||||||||||||
Opportunistic fixed income | Opportunistic fixed income | (3,141) | (6.8) | % | 11,447 | 25.7 | % | Opportunistic fixed income | (5,570) | (6.1) | % | 18,473 | 25.7 | % | ||||||||||||||||||||||||||||||||||||||
Equities | Equities | (333) | (0.8) | % | 710 | 1.7 | % | Equities | 569 | 0.7 | % | 657 | 1.7 | % | ||||||||||||||||||||||||||||||||||||||
Net investment income(1) | Net investment income(1) | $ | 4,645 | 1.5 | % | $ | 15,147 | 6.2 | % | Net investment income(1) | $ | 13,227 | 2.1 | % | $ | 25,672 | 6.2 | % | ||||||||||||||||||||||||||||||||||
Net unrealized gains (losses) on securities still held | Net unrealized gains (losses) on securities still held | $ | 3,767 | $ | (5,369) | Net unrealized gains (losses) on securities still held | $ | 8,784 | $ | (19,883) | ||||||||||||||||||||||||||||||||||||||||||
Net realized (losses) gains | Net realized (losses) gains | (2,806) | 931 | Net realized (losses) gains | (2,472) | 1,071 | ||||||||||||||||||||||||||||||||||||||||||||||
Net investment gains (losses) | Net investment gains (losses) | $ | 961 | $ | (4,438) | Net investment gains (losses) | $ | 6,312 | $ | (18,812) | ||||||||||||||||||||||||||||||||||||||||||
(1) Excludes operating cash of $1 and $2, respectively. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
(1) Excludes operating cash of $2 and $7, respectively. | (1) Excludes operating cash of $2 and $7, respectively. |
2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||
($ in thousands) | ($ in thousands) | Fair value | % of total | Fair value | % of total | ($ in thousands) | Fair value | % of total | Fair value | % of total | ||||||||||||||||||||||||||||||||||||||||||
Short-term and money market investments | Short-term and money market investments | $ | 287,350 | 22.3 | % | $ | 121,268 | 11.2 | % | Short-term and money market investments | $ | 190,674 | 14.8 | % | $ | 121,268 | 11.2 | % | ||||||||||||||||||||||||||||||||||
Core fixed income | Core fixed income | 673,137 | 52.2 | % | 607,572 | 56.1 | % | Core fixed income | 767,491 | 59.5 | % | 607,572 | 56.1 | % | ||||||||||||||||||||||||||||||||||||||
Opportunistic fixed income | Opportunistic fixed income | 172,951 | 13.3 | % | 196,021 | 18.1 | % | Opportunistic fixed income | 168,921 | 13.0 | % | 196,021 | 18.1 | % | ||||||||||||||||||||||||||||||||||||||
Equities | Equities | 156,850 | 12.2 | % | 157,506 | 14.6 | % | Equities | 163,715 | 12.7 | % | 157,506 | 14.6 | % | ||||||||||||||||||||||||||||||||||||||
Total investment portfolio | Total investment portfolio | $ | 1,290,288 | 100.0 | % | $ | 1,082,367 | 100.0 | % | Total investment portfolio | $ | 1,290,801 | 100.0 | % | $ | 1,082,367 | 100.0 | % |
2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||
($ in thousands) | ($ in thousands) | Fair value | % of total fair value | Fair value | % of total fair value | ($ in thousands) | Fair value | % of total fair value | Fair value | % of total fair value | ||||||||||||||||||||||||||||||||||||||||||
U.S. government securities | U.S. government securities | $ | 44,918 | 6.7 | % | $ | 48,541 | 8.0 | % | U.S. government securities | $ | 44,483 | 5.8 | % | $ | 48,541 | 8.0 | % | ||||||||||||||||||||||||||||||||||
Corporate securities and miscellaneous | Corporate securities and miscellaneous | 262,434 | 39.0 | % | 235,129 | 38.7 | % | Corporate securities and miscellaneous | 293,560 | 38.3 | % | 235,129 | 38.7 | % | ||||||||||||||||||||||||||||||||||||||
Municipal securities | Municipal securities | 67,339 | 10.0 | % | 57,727 | 9.5 | % | Municipal securities | 70,973 | 9.2 | % | 57,727 | 9.5 | % | ||||||||||||||||||||||||||||||||||||||
Residential mortgage-backed securities | Residential mortgage-backed securities | 133,890 | 19.8 | % | 119,856 | 19.7 | % | Residential mortgage-backed securities | 196,946 | 25.7 | % | 119,856 | 19.7 | % | ||||||||||||||||||||||||||||||||||||||
Commercial mortgage-backed securities | Commercial mortgage-backed securities | 52,182 | 7.8 | % | 36,495 | 6.0 | % | Commercial mortgage-backed securities | 17,979 | 2.3 | % | 36,495 | 6.0 | % | ||||||||||||||||||||||||||||||||||||||
Asset-backed securities | Asset-backed securities | 112,374 | 16.7 | % | 109,824 | 18.1 | % | Asset-backed securities | 143,550 | 18.7 | % | 109,824 | 18.1 | % | ||||||||||||||||||||||||||||||||||||||
Core fixed income securities, available-for-sale | Core fixed income securities, available-for-sale | $ | 673,137 | 100.0 | % | $ | 607,572 | 100.0 | % | Core fixed income securities, available-for-sale | $ | 767,491 | 100.0 | % | $ | 607,572 | 100.0 | % |
2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||
($ in thousands) | ($ in thousands) | Fair value | % of total | Fair value | % of total | ($ in thousands) | Fair value | % of total | Fair value | % of total | ||||||||||||||||||||||||||||||||||||||||||
AAA | AAA | $ | 312,144 | 46.4 | % | $ | 283,733 | 46.7 | % | AAA | $ | 371,530 | 48.4 | % | $ | 283,733 | 46.7 | % | ||||||||||||||||||||||||||||||||||
AA | AA | 87,064 | 12.9 | % | 74,604 | 12.3 | % | AA | 91,586 | 11.9 | % | 74,604 | 12.3 | % | ||||||||||||||||||||||||||||||||||||||
A | A | 153,167 | 22.8 | % | 134,175 | 22.1 | % | A | 183,654 | 23.9 | % | 134,175 | 22.1 | % | ||||||||||||||||||||||||||||||||||||||
BBB | BBB | 93,087 | 13.8 | % | 88,369 | 14.5 | % | BBB | 91,621 | 12.0 | % | 88,369 | 14.5 | % | ||||||||||||||||||||||||||||||||||||||
BB and Lower | BB and Lower | 27,675 | 4.1 | % | 26,691 | 4.4 | % | BB and Lower | 29,100 | 3.8 | % | 26,691 | 4.4 | % | ||||||||||||||||||||||||||||||||||||||
Total core fixed income | Total core fixed income | $ | 673,137 | 100.0 | % | $ | 607,572 | 100.0 | % | Total core fixed income | $ | 767,491 | 100.0 | % | $ | 607,572 | 100.0 | % |
2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||
($ in thousands) | ($ in thousands) | Fair Value | % of Total | Fair Value | % of Total | ($ in thousands) | Fair Value | % of Total | Fair Value | % of Total | ||||||||||||||||||||||||||||||||||||||||||
Real Estate | Real Estate | $ | 91,457 | 52.9 | % | $ | 90,370 | 46.1 | % | Real Estate | $ | 78,973 | 46.8 | % | $ | 90,370 | 46.1 | % | ||||||||||||||||||||||||||||||||||
Oil & Gas | Oil & Gas | 20,444 | 11.8 | % | 20,725 | 10.6 | % | Oil & Gas | 18,585 | 11.0 | % | 20,725 | 10.6 | % | ||||||||||||||||||||||||||||||||||||||
Banking, Finance & Insurance | Banking, Finance & Insurance | 14,110 | 8.2 | % | 13,870 | 7.1 | % | Banking, Finance & Insurance | 14,121 | 8.4 | % | 13,870 | 7.1 | % | ||||||||||||||||||||||||||||||||||||||
Other sectors(1) | Other sectors(1) | 10,779 | 6.2 | % | 34,072 | 17.4 | % | Other sectors(1) | 29,471 | 17.4 | % | 34,072 | 17.4 | % | ||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents(2) | Cash and cash equivalents(2) | 36,161 | 20.9 | % | 36,984 | 18.8 | % | Cash and cash equivalents(2) | 27,771 | 16.4 | % | 36,984 | 18.8 | % | ||||||||||||||||||||||||||||||||||||||
Opportunistic fixed income | Opportunistic fixed income | $ | 172,951 | 100.0 | % | $ | 196,021 | 100.0 | % | Opportunistic fixed income | $ | 168,921 | 100.0 | % | $ | 196,021 | 100.0 | % | ||||||||||||||||||||||||||||||||||
(1) Other sectors primarily includes Aerospace & Defense, Business Services, Retail, Commercial & Industrial and Environmental. | (1) Other sectors primarily includes Aerospace & Defense, Business Services, Retail, Commercial & Industrial and Environmental. | (1) Other sectors primarily includes Aerospace & Defense, Business Services, Retail, Commercial & Industrial and Environmental. | ||||||||||||||||||||||||||||||||||||||||||||||||||
(2) Includes cash on settlements that have not yet been reinvested. | (2) Includes cash on settlements that have not yet been reinvested. | (2) Includes cash on settlements that have not yet been reinvested. |
2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||
($ in thousands) | ($ in thousands) | Fair value | % of total fair value | Fair value | % of total fair value | ($ in thousands) | Fair value | % of total fair value | Fair value | % of total fair value | ||||||||||||||||||||||||||||||||||||||||||
Domestic common equities | Domestic common equities | $ | 77,247 | 49.3 | % | $ | 76,929 | 48.8 | % | Domestic common equities | $ | 81,723 | 50.0 | % | $ | 76,929 | 48.8 | % | ||||||||||||||||||||||||||||||||||
International common equities | International common equities | 36,896 | 23.5 | % | 34,468 | 21.9 | % | International common equities | 39,190 | 23.9 | % | 34,468 | 21.9 | % | ||||||||||||||||||||||||||||||||||||||
Preferred stock | Preferred stock | 6,322 | 4.0 | % | 8,772 | 5.6 | % | Preferred stock | 6,948 | 4.2 | % | 8,772 | 5.6 | % | ||||||||||||||||||||||||||||||||||||||
Other(1) | Other(1) | 36,385 | 23.2 | % | 37,337 | 23.7 | % | Other(1) | 35,854 | 21.9 | % | 37,337 | 23.7 | % | ||||||||||||||||||||||||||||||||||||||
Equities | Equities | $ | 156,850 | 100.0 | % | $ | 157,506 | 100.0 | % | Equities | $ | 163,715 | 100.0 | % | $ | 157,506 | 100.0 | % | ||||||||||||||||||||||||||||||||||
(1) Other includes limited partnerships, limited liability companies and other equity interests | (1) Other includes limited partnerships, limited liability companies and other equity interests | (1) Other includes limited partnerships, limited liability companies and other equity interests |
($ in thousands) | ($ in thousands) | 2023 | 2022 | ($ in thousands) | 2023 | 2022 | ||||||||||||||||||||||
Cash and cash equivalents provided by (used in): | Cash and cash equivalents provided by (used in): | Cash and cash equivalents provided by (used in): | ||||||||||||||||||||||||||
Operating activities | Operating activities | $ | 107,207 | $ | 45,882 | Operating activities | $ | 108,477 | $ | 64,016 | ||||||||||||||||||
Investing activities | Investing activities | (193,426) | (55,596) | Investing activities | (198,084) | (75,676) | ||||||||||||||||||||||
Financing activities | Financing activities | 66,455 | 186 | Financing activities | 66,455 | 2,150 | ||||||||||||||||||||||
Change in cash and cash equivalents and restricted cash | Change in cash and cash equivalents and restricted cash | $ | (19,764) | $ | (9,528) | Change in cash and cash equivalents and restricted cash | $ | (23,152) | $ | (9,510) |
Line of Business | Maximum Company Retention | |||||||
Accident & Health | $0.88 million per occurrence | |||||||
Commercial Auto(1) | $ | |||||||
Excess Casualty(1)(2) | $1.24 million per occurrence | |||||||
General Liability(1) | $1.25 million per occurrence | |||||||
Professional Lines(2) | $ | |||||||
Property(3) | $ | |||||||
Surety(2) | $ | |||||||
Workers’ Compensation(2) | $1.55 million per occurrence | |||||||
Cyber | $2.69 million per occurrence | |||||||
Representation and Warranty | $2.50 million per occurrence | |||||||
(1) Legal defense expenses can force exposure above the maximum company retention for Excess Casualty, Commercial Auto and General Liability. | ||||||||
(2) Reinsurance is subject to a loss ratio cap or aggregate level of loss cover that exceeds a modeled 1:250-year PML event. | ||||||||
(3) Catastrophe loss protection is purchased up to |
Exhibit Number | Exhibit Description | |||||||
3.1 | ||||||||
3.2 | ||||||||
4.1 | ||||||||
31.1 | ||||||||
31.2 | ||||||||
32.1 | ||||||||
101.INS | Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because XBRL tags are embedded within the Inline XBRL document. | |||||||
101.SCH | Inline XBRL Taxonomy Extension Schema Document | |||||||
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document | |||||||
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document | |||||||
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document | |||||||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
Skyward Specialty Insurance Group, Inc. | ||||||||||||||
Date: | By: | /s/ Andrew Robinson | ||||||||||||
Andrew Robinson | ||||||||||||||
Chief Executive Officer | ||||||||||||||
(Principal Executive Officer) |
Date: | By: | /s/ Mark Haushill | ||||||||||||
Mark Haushill | ||||||||||||||
Chief Financial Officer | ||||||||||||||
(Principal Financial and Accounting Officer) |