Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2021 | Nov. 03, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2021 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | HCI | |
Entity Registrant Name | HCI Group, Inc. | |
Entity Central Index Key | 0001400810 | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Title of 12(b) Security | Common Shares | |
Security Exchange Name | NYSE | |
Entity File Number | 001-34126 | |
Entity Incorporation, State or Country Code | FL | |
Entity Tax Identification Number | 20-5961396 | |
Entity Address, Address Line One | 3802 Coconut Palm Drive | |
Entity Address, City or Town | Tampa | |
Entity Address, State or Province | FL | |
Entity Address, Postal Zip Code | 33619 | |
City Area Code | 813 | |
Local Phone Number | 849-9500 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Common Stock, Shares Outstanding | 10,250,656 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Assets | ||
Fixed-maturity securities, available for sale, at fair value (amortized cost: $45,016 and $70,265, respectively and allowance for credit losses: $0 and $588, respectively) | $ 46,053 | $ 71,722 |
Equity securities, at fair value (cost: $46,771 and $47,029, respectively) | 50,223 | 51,130 |
Limited partnership investments | 26,039 | 27,691 |
Investment in unconsolidated joint venture, at equity | 370 | 705 |
Real estate investments | 73,663 | 74,472 |
Total investments | 196,348 | 225,720 |
Cash and cash equivalents | 569,134 | 431,341 |
Restricted cash | 2,400 | 2,400 |
Accrued interest and dividends receivable | 463 | 588 |
Income taxes receivable | 0 | 4,554 |
Premiums receivable, net (allowance: $3,756 and $2,053, respectively) | 43,078 | 68,382 |
Prepaid reinsurance premiums | 47,968 | 36,376 |
Reinsurance recoverable, net of allowance for credit losses: | ||
Paid losses and loss adjustment expenses (allowance: $0 and $0, respectively) | 9,658 | 14,127 |
Unpaid losses and loss adjustment expenses (allowance: $44 and $85, respectively) | 39,468 | 71,019 |
Deferred policy acquisition costs | 47,129 | 43,858 |
Property and equipment, net | 13,946 | 12,767 |
Right-of-use assets - operating leases | 2,576 | 4,002 |
Intangible assets, net | 10,807 | 3,568 |
Funds held in trust for assumed business | 79,965 | 0 |
Other assets | 13,174 | 22,611 |
Total assets | 1,076,114 | 941,313 |
Liabilities and Equity | ||
Losses and loss adjustment expenses | 203,177 | 212,169 |
Unearned premiums | 334,299 | 269,399 |
Advance premiums | 19,062 | 11,370 |
Assumed reinsurance balances payable | 88 | 87 |
Reinsurance payable on paid losses and loss adjustment expenses | 4,727 | 0 |
Accrued expenses | 15,187 | 10,181 |
Income tax payable | 3,574 | 0 |
Deferred income taxes, net | 3,708 | 11,925 |
Revolving credit facility | 0 | 23,750 |
Long-term debt | 78,083 | 156,511 |
Lease liabilities - operating leases | 2,578 | 4,014 |
Other liabilities | 31,372 | 40,771 |
Total liabilities | 695,855 | 740,177 |
Commitments and contingencies (Note 21) | ||
Redeemable noncontrolling interest (Note 18) | 87,731 | 0 |
Equity: | ||
Common stock (no par value, 40,000,000 shares authorized, 9,591,079 and 7,785,617 shares issued and outstanding at September 30, 2021 and December 31, 2020, respectively) | 0 | 0 |
Additional paid-in capital | 39,905 | 0 |
Retained income | 250,808 | 199,592 |
Accumulated other comprehensive income, net of taxes | 799 | 1,544 |
Total stockholders’ equity | 291,512 | 201,136 |
Noncontrolling interests | 1,016 | 0 |
Total equity | 292,528 | 201,136 |
Total liabilities, redeemable noncontrolling interest and equity | $ 1,076,114 | $ 941,313 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Statement Of Financial Position [Abstract] | ||
Available-for-sale Debt securities, Amortized cost | $ 45,016 | $ 70,265 |
Available-for-sale Debt securities, Allowance for credit losses | 0 | 588 |
Equity Securities, Cost | 46,771 | 47,029 |
Paid losses and loss adjustments allowance | $ 44 | $ 85 |
Common stock, no par value | $ 0 | $ 0 |
Common stock, shares authorized | 40,000,000 | 40,000,000 |
Common stock, shares issued | 9,591,079 | 7,785,617 |
Common stock, outstanding | 9,591,079 | 7,785,617 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Revenue | ||||
Gross premiums earned | $ 149,809 | $ 106,694 | $ 420,191 | $ 306,862 |
Premiums ceded | (55,577) | (44,231) | (145,112) | (109,304) |
Net premiums earned | 94,232 | 62,463 | 275,079 | 197,558 |
Net investment income | 2,520 | 1,832 | 9,749 | 3,244 |
Net realized investment gains (losses) | 1,232 | 177 | 4,952 | (632) |
Net unrealized investment (losses) gains | (1,869) | 1,340 | (649) | (581) |
Credit losses on investments | 0 | (70) | 0 | (596) |
Policy fee income | 1,000 | 895 | 2,962 | 2,571 |
Gain on involuntary conversion | 0 | 36,969 | 0 | 36,969 |
Other | 2,102 | 421 | 3,502 | 1,591 |
Total revenue | 99,217 | 104,027 | 295,595 | 240,124 |
Expenses | ||||
Losses and loss adjustment expenses | 62,664 | 51,743 | 164,332 | 119,664 |
Policy acquisition and other underwriting expenses | 23,340 | 14,210 | 69,574 | 39,027 |
General and administrative personnel expenses | 11,537 | 9,871 | 31,733 | 27,969 |
Interest expense | 1,664 | 2,856 | 5,743 | 8,846 |
Loss on repurchases of convertible senior notes | 0 | 0 | 0 | 150 |
Loss on extinguishment of debt | 0 | 98 | 0 | 98 |
Debt conversion expense | 1,273 | 0 | 1,273 | 0 |
Other operating expenses | 5,243 | 3,713 | 14,245 | 10,354 |
Total expenses | 105,721 | 82,491 | 286,900 | 206,108 |
Income (loss) before income taxes | (6,504) | 21,536 | 8,695 | 34,016 |
Income tax (benefit) expense | (1,636) | 6,146 | 2,888 | 9,143 |
Net (loss) income | (4,868) | 15,390 | 5,807 | 24,873 |
Net income attributable to redeemable noncontrolling interest (Note 18) | (2,202) | 0 | (5,175) | 0 |
Net loss attributable to noncontrolling interests | 833 | 0 | 1,196 | 0 |
Net (loss) income after noncontrolling interests | $ (6,237) | $ 15,390 | $ 1,828 | $ 24,873 |
Basic (loss) earnings per share | $ (0.72) | $ 1.97 | $ 0.23 | $ 3.21 |
Diluted (loss) earnings per share | $ (0.72) | $ 1.70 | $ 0.22 | $ 3.03 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net (loss) income | $ (4,868) | $ 15,390 | $ 5,807 | $ 24,873 |
Change in unrealized (loss) gain on investments: | ||||
Net unrealized gains (losses) arising during the period | (258) | 247 | (341) | 56 |
Credit losses charged to income | 0 | 70 | 0 | 596 |
Call and repayment gains charged to investment income | 0 | (15) | (2) | (231) |
Reclassification adjustment for realized (gains) losses | (88) | 21 | (665) | (1,133) |
Net change in unrealized (losses) gains | (346) | 323 | (1,008) | (712) |
Deferred income taxes on above change | 85 | (79) | 247 | 174 |
Total other comprehensive (loss) income, net of income taxes | (261) | 244 | (761) | (538) |
Comprehensive (loss) income | (5,129) | 15,634 | 5,046 | 24,335 |
Comprehensive loss attributable to noncontrolling interests | 839 | 0 | 1,212 | 0 |
Comprehensive (loss) income after noncontrolling interests | $ (4,290) | $ 15,634 | $ 6,258 | $ 24,335 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Share Repurchase Plan [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | Common Stock [Member] | Common Stock [Member]Share Repurchase Plan [Member] | Additional Paid-In Capital [Member] | Additional Paid-In Capital [Member]Share Repurchase Plan [Member] | Retained Income [Member] | Retained Income [Member]Cumulative Effect, Period of Adoption, Adjustment [Member] | Accumulated Other Comprehensive Income, Net of Tax [Member] | Total Stockholders' Equity [Member] | Total Stockholders' Equity [Member]Cumulative Effect, Period of Adoption, Adjustment [Member] | Noncontrolling Interests [Member] |
Beginning Balance at Dec. 31, 2019 | $ 185,543 | $ (453) | $ 183,365 | $ (453) | $ 2,178 | ||||||||
Beginning Balance, shares at Dec. 31, 2019 | 7,764,564 | ||||||||||||
Net income (loss) | 24,873 | 24,873 | |||||||||||
Net income attributable to redeemable noncontrolling interest (Note 18) | 0 | ||||||||||||
Total other comprehensive income (loss), net of income taxes | (538) | (538) | |||||||||||
Exercise of common stock options, value | $ 63 | $ 63 | |||||||||||
Exercise of common stock options, shares | 10,000 | 10,000 | |||||||||||
Issuance of restricted stock | $ 0 | $ 0 | 0 | 0 | 0 | ||||||||
Issuance of restricted stock, shares | 192,680 | ||||||||||||
Forfeiture of restricted stock, value | 0 | $ 0 | 0 | 0 | 0 | ||||||||
Forfeiture of restricted stock, shares | (14,727) | ||||||||||||
Common stock issued on conversions of 4.25% senior notes | 0 | ||||||||||||
Repurchase and retirement of common stock, value | (1,338) | $ (5,161) | (1,338) | $ (5,161) | |||||||||
Repurchase and retirement of common stock, shares | (129,142) | (29,698) | (129,142) | ||||||||||
Common stock dividends | (9,279) | (9,279) | |||||||||||
Stock-based compensation | 6,022 | 6,022 | |||||||||||
Additional paid-in capital shortfall adjustment allocated to retained income | 414 | (414) | |||||||||||
Ending Balance at Sep. 30, 2020 | 199,732 | 198,092 | 1,640 | ||||||||||
Ending Balance, shares at Sep. 30, 2020 | 7,793,677 | ||||||||||||
Beginning Balance at Jun. 30, 2020 | 185,085 | 183,689 | 1,396 | ||||||||||
Beginning Balance, shares at Jun. 30, 2020 | 7,794,048 | ||||||||||||
Net income (loss) | 15,390 | 15,390 | |||||||||||
Net income attributable to redeemable noncontrolling interest (Note 18) | 0 | ||||||||||||
Total other comprehensive income (loss), net of income taxes | $ 244 | 244 | |||||||||||
Exercise of common stock options, shares | |||||||||||||
Issuance of restricted stock | $ 0 | $ 0 | 0 | 0 | 0 | ||||||||
Issuance of restricted stock, shares | 2,680 | ||||||||||||
Forfeiture of restricted stock, value | 0 | $ 0 | 0 | 0 | 0 | ||||||||
Forfeiture of restricted stock, shares | (2,369) | ||||||||||||
Repurchase and retirement of common stock, value | (12) | $ (20) | (12) | $ (20) | |||||||||
Repurchase and retirement of common stock, shares | (225) | (457) | |||||||||||
Common stock dividends | (3,117) | (3,117) | |||||||||||
Stock-based compensation | 2,162 | 2,162 | |||||||||||
Additional paid-in capital shortfall adjustment allocated to retained income | (2,130) | 2,130 | |||||||||||
Ending Balance at Sep. 30, 2020 | 199,732 | 198,092 | 1,640 | ||||||||||
Ending Balance, shares at Sep. 30, 2020 | 7,793,677 | ||||||||||||
Beginning Balance at Dec. 31, 2020 | 201,136 | $ (3,018) | 199,592 | $ (3,018) | 1,544 | $ 201,136 | $ (3,018) | ||||||
Beginning Balance, shares at Dec. 31, 2020 | 7,785,617 | ||||||||||||
Net income (loss) | 5,807 | 6,692 | 6,692 | (885) | |||||||||
Net income attributable to redeemable noncontrolling interest (Note 18) | (5,175) | (4,864) | (4,864) | (311) | |||||||||
Total other comprehensive income (loss), net of income taxes | $ (761) | (745) | (745) | (16) | |||||||||
Exercise of common stock options, shares | |||||||||||||
Issuance of restricted stock | $ 0 | $ 0 | 0 | 0 | 0 | 0 | 0 | ||||||
Issuance of restricted stock, shares | 553,426 | ||||||||||||
Forfeiture of restricted stock, value | 0 | $ 0 | 0 | 0 | 0 | 0 | 0 | ||||||
Forfeiture of restricted stock, shares | (49,965) | ||||||||||||
Cancellation of restricted stock, shares | (142,760) | ||||||||||||
Common stock issued on conversions of 4.25% senior notes, Share | 1,361,954 | ||||||||||||
Common stock issued on conversions of 4.25% senior notes | 82,339 | 82,339 | 82,339 | ||||||||||
Repurchase and retirement of common stock, value | (1,308) | (1,308) | (1,308) | ||||||||||
Repurchase and retirement of common stock, shares | (17,193) | ||||||||||||
Issuance of common stock | 5,410 | 5,410 | 5,410 | ||||||||||
Issuance of common stock, shares | 100,000 | ||||||||||||
Dilution from subsidiary stock-based compensation | 2,228 | 2,228 | |||||||||||
Issuance of warrants, net of issuance costs (Note 18) | 8,640 | 8,640 | 8,640 | ||||||||||
Common stock dividends | (9,713) | (9,713) | (9,713) | ||||||||||
Stock-based compensation | 6,943 | 6,943 | 6,943 | ||||||||||
Additional paid-in capital shortfall adjustment allocated to retained income | (62,119) | 62,119 | |||||||||||
Ending Balance at Sep. 30, 2021 | 292,528 | 39,905 | 250,808 | 799 | 291,512 | 1,016 | |||||||
Ending Balance, shares at Sep. 30, 2021 | 9,591,079 | ||||||||||||
Beginning Balance at Jun. 30, 2021 | 218,049 | 215,612 | 1,054 | 216,666 | 1,383 | ||||||||
Beginning Balance, shares at Jun. 30, 2021 | 8,265,640 | ||||||||||||
Net income (loss) | (4,868) | (4,346) | (4,346) | (522) | |||||||||
Net income attributable to redeemable noncontrolling interest (Note 18) | (2,202) | (1,891) | (1,891) | (311) | |||||||||
Total other comprehensive income (loss), net of income taxes | $ (261) | (255) | (255) | (6) | |||||||||
Exercise of common stock options, shares | |||||||||||||
Issuance of restricted stock | $ 0 | $ 0 | 0 | 0 | 0 | 0 | 0 | ||||||
Issuance of restricted stock, shares | 2,340 | ||||||||||||
Forfeiture of restricted stock, value | 0 | $ 0 | 0 | 0 | 0 | 0 | 0 | ||||||
Forfeiture of restricted stock, shares | (38,855) | ||||||||||||
Common stock issued on conversions of 4.25% senior notes, Share | 1,361,954 | ||||||||||||
Common stock issued on conversions of 4.25% senior notes | 82,339 | 82,339 | 82,339 | ||||||||||
Dilution from subsidiary stock-based compensation | 472 | 472 | |||||||||||
Common stock dividends | (3,261) | (3,261) | (3,261) | ||||||||||
Stock-based compensation | 2,260 | 2,260 | 2,260 | ||||||||||
Additional paid-in capital shortfall adjustment allocated to retained income | (44,694) | 44,694 | |||||||||||
Ending Balance at Sep. 30, 2021 | $ 292,528 | $ 39,905 | $ 250,808 | $ 799 | $ 291,512 | $ 1,016 | |||||||
Ending Balance, shares at Sep. 30, 2021 | 9,591,079 |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Statement Of Stockholders Equity [Abstract] | ||||
Common stock dividends | $ 0.40 | $ 0.40 | $ 1.20 | $ 1.20 |
Debt instrument stated interest rate | 4.25% | 4.25% |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Cash flows from operating activities: | ||
Net (loss) income after noncontrolling interests | $ 1,828 | $ 24,873 |
Net income attributable to noncontrolling interests | 3,979 | 0 |
Net income | 5,807 | 24,873 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Stock-based compensation | 9,229 | 6,022 |
Net amortization of premiums (accretion of discounts) on investments in fixed-maturity securities | 180 | (21) |
Depreciation and amortization | 4,276 | 6,499 |
Deferred income tax (benefit) expense | (6,989) | 5,032 |
Net realized investment (gains) losses | (4,952) | 632 |
Net unrealized investment (gains) losses | 649 | 581 |
Credit loss expense - investments | 0 | 596 |
Credit loss expense - reinsurance recoverable | (41) | (363) |
Net (income) loss from unconsolidated joint venture | (423) | 46 |
Distribution received from unconsolidated joint venture | 114 | 0 |
Net (income) loss from limited partnership interests | (3,491) | 2,058 |
Distributions received from limited partnership interests | 2,345 | 650 |
Loss on repurchases of convertible senior notes | 0 | (150) |
Loss on extinguishment of debt | 0 | (98) |
Debt conversion expense | 1,273 | 0 |
Gain on involuntary conversion | 0 | (36,969) |
Foreign currency remeasurement loss | 48 | 40 |
Other non-cash items | 37 | 57 |
Changes in operating assets and liabilities: | ||
Accrued interest and dividends receivable | 125 | 700 |
Income taxes | 8,128 | (1,671) |
Premiums receivable, net | 25,304 | (8,250) |
Prepaid reinsurance premiums | (11,592) | (24,187) |
Reinsurance recoverable | 36,061 | 37,404 |
Deferred policy acquisition costs | (3,271) | (8,038) |
Funds held in trust for assumed business | 79,965 | |
Other assets | 5,727 | (3,552) |
Losses and loss adjustment expenses | (8,992) | 4,648 |
Unearned premiums | 64,900 | 57,773 |
Advance premiums | 7,692 | 11,494 |
Assumed reinsurance balances payable | 1 | 16 |
Reinsurance payable on paid losses and loss adjustment expenses | 4,727 | |
Accrued expenses and other liabilities | (8,236) | 1,212 |
Net cash provided by operating activities | 48,671 | 77,530 |
Cash flows from investing activities: | ||
Investments in limited partnership interests | (837) | (2,951) |
Distributions received from limited partnership interests | 3,635 | 1,092 |
Distribution received from unconsolidated joint venture | 623 | 0 |
Purchase of property and equipment | (2,583) | (5,928) |
Purchase of real estate investments | (657) | (3,052) |
Purchase of fixed-maturity securities | (10,504) | (30,200) |
Purchase of equity securities | (72,707) | (27,175) |
Purchase of short-term and other investments | (1,161) | 0 |
Compensation received for property relinquished through eminent domain | 0 | 44,000 |
Proceeds from sales of fixed-maturity securities | 18,838 | 79,284 |
Proceeds from calls, repayments and maturities of fixed-maturity securities | 16,734 | 60,870 |
Proceeds from sales of equity securities | 81,292 | 17,385 |
Proceeds from sales, redemptions and maturities of short-term and other investments | 2,414 | 475 |
Net cash provided by investing activities | 35,087 | 133,800 |
Cash flows from financing activities: | ||
Cash dividends paid | (9,943) | (9,508) |
Cash dividends received under share repurchase forward contract | 230 | 229 |
Net repayment under revolving credit facility | (23,750) | (1,000) |
Proceeds from exercise of common stock options | 0 | 63 |
Proceeds from issuance of redeemable noncontrolling interest and warrants | 100,000 | 0 |
Issuance costs - redeemable noncontrolling interest | (6,262) | 0 |
Cash dividends paid to redeemable noncontrolling interest | (2,542) | 0 |
Proceeds from issuance of long-term debt | 0 | 10,000 |
Repayment of long-term debt | (724) | (16,812) |
Repurchases of convertible senior notes | 0 | (4,459) |
Repurchases of common stock | (1,308) | (1,338) |
Repurchases of common stock under share repurchase plan | 0 | (5,161) |
Purchase of noncontrolling interests | (58) | 0 |
Debt conversion expense paid | (1,414) | 0 |
Debt issuance costs | (152) | (165) |
Net cash provided by (used in) financing activities | 54,077 | (28,151) |
Effect of exchange rate changes on cash | (42) | (6) |
Net increase in cash, cash equivalents, and restricted cash | 137,793 | 183,173 |
Cash, cash equivalents, and restricted cash at beginning of period | 433,741 | 229,918 |
Cash, cash equivalents, and restricted cash at end of period | 571,534 | 413,091 |
Supplemental disclosure of cash flow information: | ||
Cash paid for income taxes | 1,748 | 6,137 |
Cash paid for interest | 6,686 | 7,137 |
Non-cash investing and financing activities: | ||
Unrealized loss on investments in available-for-sale securities, net of tax | (761) | (538) |
Receivable from maturities of fixed-maturity securities | 18 | 0 |
Common stock issued on conversions of 4.25% senior notes | (82,339) | 0 |
Warrants issued in Centerbridge transaction | 9,217 | 0 |
Asset acquired under finance lease | 7 | 0 |
Acquisition of intangibles: | ||
Common stock issued | 5,410 | $ 0 |
Contingent consideration payable | $ 2,419 |
Nature of Operations
Nature of Operations | 9 Months Ended |
Sep. 30, 2021 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Nature of Operations | Note 1 -- Nat ure of Operations HCI Group, Inc., together with its subsidiaries (“HCI” or the “Company”), is primarily engaged in the property and casualty insurance business through two Florida domiciled insurance companies, Homeowners Choice Property & Casualty Insurance Company, Inc. (“HCPCI”) and TypTap Insurance Company (“TypTap”). Both HCPCI and TypTap are authorized to underwrite various homeowners’ property and casualty insurance products and allied lines business in the state of Florida and in several other states. The operations of both insurance subsidiaries are supported by HCI Group, Inc. and certain HCI subsidiaries. The Company emphasizes the use of internally developed technologies to collect and analyze claims and other supplemental data to generate savings and efficiency for the operations of the insurance subsidiaries. In the first quarter of 2021, the Company reorganized its operations to focus on specific business segments, resulting in the creation of TypTap Insurance Group, Inc. (“TTIG”) with a separate workforce, board of directors and financial reporting structure. In February 2021, TTIG received a capital investment from a third party representing a minority interest as described in Note 18 -- “Redeemable Noncontrolling Interest.” Companies under TTIG include TypTap, TypTap Management Company, Exzeo USA, Inc., and Cypress Tech Development Company, Inc., the parent company of an India company, Exzeo Software Private Limited. TTIG and its subsidiaries are considered a new reporting segment known as TypTap Group. The Company’s reportable segments now include HCPCI insurance operations, TypTap Group, real estate operations, and corporate and other. Real estate operations are conducted by Greenleaf Capital, LLC, the Company’s real estate subsidiary, which is primarily engaged in the businesses of owning and leasing real estate and operating marina facilities. Assumed Business Effective December 31, 2020, United Property & Casualty Insurance Company, an insurance subsidiary of United Insurance Holdings Corporation (“United”), ceded a portion of its personal lines insurance business in the states of Connecticut, New Jersey, Massachusetts, and Rhode Island to HCPCI. Under the reinsurance agreement, HCPCI provides 69.5 % quota share reinsurance on all of United’s in-force, new and renewal policies in those states from December 31, 2020 through May 31, 2021. In exchange, HCPCI paid United an allowance of $ 4,400 towards already purchased catastrophe reinsurance and a provisional ceding commission of 25 % of premium. That percentage could increase up to 31.5 % depending on the direct loss ratio results from the reinsured business. On January 18, 2021, the Company entered into a renewal rights agreement with United in connection with the assumed business. Under the agreement, the Company acquired all rights to renew and/or replace United’s homeowners insurance policies at the end of their respective policy periods in the states of Connecticut, Massachusetts, New Jersey and Rhode Island. The policy replacement date is June 1, 2021 or such other date as mutually agreed by both parties. The agreement also contains a non-compete clause that does not permit United to engage in marketing, selling, writing, renewing, or servicing any homeowners insurance contracts in these states until July 1, 2024. In return, United received 100,000 shares of HCI’s common stock and will receive a 6 % commission on any replacement premium in excess of $ 80,000 . The total commission will not exceed $ 3,100 . The Company and United agreed to postpone the policy replacement date under the renewal rights agreement to a later date and the Company, through HCPCI and TypTap, entered into a new quota share reinsurance agreement in June 2021 to provide 100 % reinsurance on all of United’s in-force, new and renewal policies in those states from June 1, 2021 through May 31, 2022. Under the new agreement, each insurance subsidiary assumes 50 % of the business and pays United a ceding commission of 24 % of premium. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 2 -- Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited consolidated financial statements for HCI Group, Inc. and its majority-owned and controlled subsidiaries (collectively, the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information, and the Securities and Exchange Commission (“SEC”) rules for interim financial reporting. Certain information and footnote disclosures normally included in consolidated financial statements prepared in accordance with U.S. GAAP have been omitted pursuant to such rules and regulations. However, in the opinion of management, the accompanying consolidated financial statements reflect all normal recurring adjustments necessary to present fairly the Company’s financial position as of September 30, 2021 and the results of operations and cash flows for the interim periods presented. The results of operations for the interim periods presented are not necessarily indicative of the results of operations to be expected for any subsequent interim period or for the fiscal year ending December 31, 2021. The accompanying unaudited consolidated financial statements and notes thereto should be read in conjunction with the audited consolidated financial statements for the year ended December 31, 2020 included in the Company’s Form 10-K, which was filed with the SEC on March 12, 2021. In preparing the interim unaudited consolidated financial statements, management was required to make certain judgments, assumptions, and estimates that affect the reported amounts of assets, liabilities, revenues, expenses and related disclosures at the financial reporting date and throughout the periods being reported upon. Certain of the estimates result from judgments that can be subjective and complex and consequently actual results may differ from these estimates. Material estimates that are particularly susceptible to significant change in the near term are related to the Company’s losses and loss adjustment expenses, which include amounts estimated for claims incurred but not yet reported. The Company uses various assumptions and actuarial data it believes to be reasonable under the circumstances to make these estimates. In addition, accounting policies specific to reinsurance with retrospective provisions, reinsurance recoverable, deferred income taxes, limited partnership investments, warrants, redeemable noncontrolling interest, intangible assets acquired from United, and stock-based compensation expense involve significant judgments and estimates material to the Company’s consolidated financial statements. All significant intercompany balances and transactions have been eliminated. Adoption of New Accounting Standards Accounting Standards Update No. 2020-06. In August 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2020-06 (“ASU 2020-06”) Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity’s Own Equity (Subtopic 815-40). ASU 2020-06 removes certain bifurcation models for convertible debt instruments and convertible preferred stock. Therefore, the embedded conversion features no longer are separated from the host contract for convertible instruments with conversion features that are not required to be accounted for as derivatives under Topic 815, Derivatives and Hedging, or that do not result in substantial premiums accounted for as paid-in-capital. The amendments also remove three settlement conditions that are required for equity contracts to qualify for the derivative scope exception and amend the derivative scope exception guidance for contracts in an entity’s own equity. In addition, the amendments expand disclosure requirements for convertible instruments and simplify areas of the guidance for diluted earnings-per-share calculations that are impacted by the amendments. The Company elected to early adopt this update on January 1, 2021 using the modified retrospective method. The adoption of this update increased long-term debt by $ 3,999 and simultaneously decreased beginning retained income and deferred income tax liabilities by $ 3,018 and $ 981 , respectively. The if-converted method will be the only permissible method for computing the dilutive effect of a convertible debt instrument. Interest expense no longer includes amortization of debt discount. Funds Held in Trust for Assumed Business The Company accounts for trust account deposits with regards to the quota share reinsurance agreements between the Company's insurance subsidiaries and United as funds held in trust for assumed business. This balance consists of funds deposited to establish the trust accounts and assumed premiums written net of provisional commission, any catastrophe cost allowance applicable, and paid losses and loss adjustment expenses. Redeemable Noncontrolling Interest Redeemable noncontrolling interest represents an economic interest in TTIG and is presented in the temporary equity (mezzanine) section of the consolidated balance sheet. The interest contains rights in dividends, voting, conversion, participation, liquidation preference and redemption. The redemption feature is not solely within the control of TTIG (See Note 18 -- “Redeemable Noncontrolling Interest”). The redeemable noncontrolling interest is initially recorded at fair value and is decreased by related issuance costs. The fair value is estimated using a residual fair value approach. The effect of increasing dividend rates is accreted to the redeemable noncontrolling interest with a corresponding debit to retained income. The effective interest method is used for accretion over the period of the increasing dividend rates. The carrying value of the interest is also subsequently adjusted for accrued dividends and dividend payments. The Company has an option to pay the dividends in cash or make a payment in kind. The dividends are accrued monthly assuming that they will be settled in cash. When the redemption is probable, the Company elects to recognize changes in the redemption value immediately as it occurs and adjust the carrying value of the interest to the maximum redemption value which is the higher of the redemption price or fair market value at the reporting date. Such changes in the redemption value are treated as dividends when calculating income available to common stockholders. Noncontrolling Interests The Company has noncontrolling interests attributable to TTIG. A noncontrolling interest arises when the Company has less than 100 % of the voting rights and economic interests in a subsidiary. The noncontrolling interest is periodically adjusted for the expensing of TTIG’s restricted stock awards granted to its employees, the interest’s share of TTIG’s net income or loss to common stockholders and change in other comprehensive income or loss. Revenue from Claims Handling Services The Company provides a claims handling service to a third-party insurance company. The service includes investigation, evaluation, adjustment and settlement of a claim. These highly interrelated activities are combined to fulfill the Company’s obligation to provide the claims handling service under a contract. As such, they are considered a single performance obligation for revenue recognition purposes. Fees are established on a per-claim basis by type of claim. For each type of claim, the per-claim fee revenue is recognized over an average claim processing period. The Company may incur additional costs for outsourced services in connection with the investigation, coverage analysis, adjustment, negotiation, settlement, defense or general handling of a claim. These costs are reimbursable from the customer. The Company has control over how an outsourced service is performed on its behalf. Thus, these pass-through costs are recognized as revenue in the gross amount to which the Company expects to be entitled and when the outsourced service is completed and paid or accrued by the Company. For a certain type of claim and in addition to the per-claim service fee, the Company is entitled to additional revenue which is determined based on a fixed percent of the paid indemnification of the loss per claim. The revenue is recognized when the indemnification is paid by the Company. Revenue related to claims handling services is included in other revenue in the consolidated statement of income. For the three and nine months ended September 30, 2021, revenues from claims handling services were $ 1,709 and $ 1,916 , respectively. At September 30, 2021, other assets included $ 768 of amounts receivable attributable to this service. Stock-Based Compensation The Company accounts for stock-based compensation under the fair value recognition provisions of U.S. GAAP which requires the measurement and recognition of compensation for all stock-based awards made to employees and directors based on estimated fair values. In accordance with U.S. GAAP, the fair value of stock-based awards is generally recognized as compensation expense over the requisite service period, which is defined as the period during which a recipient is required to provide service in exchange for an award. Forfeitures of the Company’s stock-based awards are accounted for as they occur. The Company uses a straight-line attribution method for all grants that include only a service condition. Restricted stock grants with market conditions are expensed over the derived service period. Expensing market-based awards may be expedited if the conditions are met sooner than anticipated. The Company’s outstanding stock-based awards include stock options, warrants and restricted stock awards with service and market conditions. Compensation expense related to all awards is included in general and administrative personnel expenses. The Company receives a windfall tax benefit for certain stock option exercises and for restricted stock awards if these awards vest at a higher value than the value used to recognize compensation expense. In the event the restricted stock awards vest at a lower value than the value used to recognize compensation expense, the Company experiences a tax shortfall. The Company recognizes tax windfalls and shortfalls in the consolidated statements of income. Reclassification In response to the new reporting segment described in Note 1 -- “Nature of Operations,” the prior period segment information has been reclassified to conform with the current period presentation. TypTap and TypTap Management Company were removed from the segment previously referred to as Insurance Operations to form the new TypTap Group segment. The information technology companies which had previously been presented in the Corporate and Other segment were also added to the TypTap Group segment. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Changes And Error Corrections [Abstract] | |
Recent Accounting Pronouncements | Note 3 -- Recent Accounting Pronouncements Accounting Standards Update No. 2021-01. In January 2021, the FASB issued Accounting Standards Update No. 2021-01 (“ASU 2021-01”) Reference Rate Reform (Topic 848). This update refines the scope of ASC 848 and clarifies some of its guidance as part of the Board’s monitoring of global reference rate reform activities. ASU 2021-01 permits entities to apply certain optional expedients to modifications of interest rate indexes used for margining, discounting or contract price alignment of certain derivatives in connection with reference rate reform activities under way in global financial markets. It also extends optional expedients to account for a derivative contract modified as a continuation of the existing contract and to continue hedge accounting when certain critical terms of a hedging relationship change to modifications made as part of the discounting transition. ASU 2021-01 is effective immediately and does not have any materia l impact on the Company’s consolidated financial statements. Accounting Standards Update No. 2021-04. In May 2021, the FASB issued Accounting Standards Update No. 2021-04 (“ASU 2021-04”) Earnings Per Share (Topic 260), Debt - Modifications and Extinguishments (Subtopic 470-50), Compensation - Stock Compensation (Topic 718), and Derivatives and Hedging - Contracts in Entity's Own Equity (Subtopic 815-40). This update clarifies and reduces diversity in an issuer’s accounting for modifications or exchanges of freestanding equity-classified written call options (for example, warrants) that remain equity classified after modification or exchange. The guidance clarifies whether an issuer should account for a modification or an exchange of a freestanding equity-classified written call option that remains equity classified after modification or exchange as (1) an adjustment to equity and, if so, the related earnings per share effects, if any, or (2) an expense and, if so, the manner and pattern of recognition. ASU 2021-04 is effective for the Company beginning with the first quarter of 2022 and will be applied prospectively. Early adoption is permitted. This guidance will not have a material impact on the Company’s consolidated financial statements. |
Cash, Cash Equivalents, and Res
Cash, Cash Equivalents, and Restricted Cash | 9 Months Ended |
Sep. 30, 2021 | |
Cash And Cash Equivalents [Abstract] | |
Cash, Cash Equivalents, and Restricted Cash | Note 4 -- Cash, Cash Equivalents, and Restricted Cash The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the Company’s consolidated balance sheets that sum to the total of the same such amounts shown in the statements of cash flows. September 30, December 31, 2021 2020 Cash and cash equivalents $ 569,134 $ 431,341 Restricted cash 2,400 2,400 Total $ 571,534 $ 433,741 Restricted cash primarily represents funds held by certain states in which the Company’s insurance subsidiaries conduct business to meet regulatory requirements. |
Investments
Investments | 9 Months Ended |
Sep. 30, 2021 | |
Investments Debt And Equity Securities [Abstract] | |
Investments | Note 5 -- Investments a) Available-for-Sale Fixed-Maturity Securities The Company holds investments in fixed-maturity securities that are classified as available-for-sale. At September 30, 2021 and December 31, 2020, the cost or amortized cost, allowance for credit loss, gross unrealized gains and losses, and estimated fair value of the Company’s available-for-sale securities by security type were as follows: Cost or Allowance Gross Gross Estimated Cost Loss Gain Loss Value As of September 30, 2021 U.S. Treasury and U.S. government agencies $ 12,870 $ — $ 103 $ ( 20 ) $ 12,953 Corporate bonds 27,736 — 851 ( 62 ) 28,525 States, municipalities, and political subdivisions 1,757 — 60 — 1,817 Exchange-traded debt 2,185 — 104 — 2,289 Redeemable preferred stock 468 — 2 ( 1 ) 469 Total $ 45,016 $ — $ 1,120 $ ( 83 ) $ 46,053 As of December 31, 2020 U.S. Treasury and U.S. government agencies $ 13,759 $ — $ 210 $ ( 1 ) $ 13,968 Corporate bonds 49,957 ( 579 ) 1,570 ( 17 ) 50,931 States, municipalities, and political subdivisions 3,023 — 60 ( 2 ) 3,081 Exchange-traded debt 3,491 ( 9 ) 230 ( 5 ) 3,707 Redeemable preferred stock 35 — — — 35 Total $ 70,265 $ ( 588 ) $ 2,070 $ ( 25 ) $ 71,722 Expected maturities will differ from contractual maturities as borrowers may have the right to call or prepay obligations with or without penalties. The scheduled contractual maturities of fixed-maturity securities as of September 30, 2021 and December 31, 2020 are as follows: September 30, 2021 December 31, 2020 Cost or Estimated Cost or Estimated Amortized Cost Fair Value Amortized Cost Fair Value Available-for-sale Due in one year or less $ 12,413 $ 12,497 $ 21,122 $ 21,258 Due after one year through five years 23,548 24,209 43,561 44,339 Due after five years through ten years 7,250 7,444 2,731 3,060 Due after ten years 1,805 1,903 2,851 3,065 $ 45,016 $ 46,053 $ 70,265 $ 71,722 Sales of Available-for-Sale Fixed-Maturity Securities Proceeds received, and the gross realized gains and losses from sales of available-for-sale securities, for the three and nine months ended September 30, 2021 and 2020 were as follows: Gross Gross Proceeds Gains Losses Three months ended September 30, 2021 $ 4,158 $ 94 $ ( 6 ) Three months ended September 30, 2020 $ 1,098 $ 13 $ ( 34 ) Nine months ended September 30, 2021 $ 18,838 $ 671 $ ( 6 ) Nine months ended September 30, 2020 $ 79,284 $ 1,743 $ ( 610 ) Gross Unrealized Losses for Available-for-Sale Fixed-Maturity Securities Securities with gross unrealized loss positions at September 30, 2021 and December 31, 2020, aggregated by investment category and length of time the individual securities have been in a continuous loss position, are as follows: Less Than Twelve Months Twelve Months or Longer Total Gross Estimated Gross Estimated Gross Estimated Unrealized Fair Unrealized Fair Unrealized Fair As of September 30, 2021 Loss Value Loss Value Loss Value U.S. Treasury and U.S. government $ ( 20 ) $ 4,634 $ — $ — $ ( 20 ) $ 4,634 Corporate bonds ( 42 ) 5,129 ( 20 ) 331 ( 62 ) 5,460 Redeemable preferred stock ( 1 ) 424 — — ( 1 ) 424 Total available-for-sale securities $ ( 63 ) $ 10,187 $ ( 20 ) $ 331 $ ( 83 ) $ 10,518 Less Than Twelve Months Twelve Months or Longer Total Gross Estimated Gross Estimated Gross Estimated Unrealized Fair Unrealized Fair Unrealized Fair As of December 31, 2020 Loss Value Loss Value Loss Value U.S. Treasury and U.S. government $ ( 1 ) $ 1,337 $ — $ — $ ( 1 ) $ 1,337 Corporate bonds ( 17 ) 3,085 — — ( 17 ) 3,085 States, municipalities, and political ( 2 ) 1,268 — — ( 2 ) 1,268 Exchange-traded debt ( 5 ) 336 — — ( 5 ) 336 Total available-for-sale securities $ ( 25 ) $ 6,026 $ — $ — $ ( 25 ) $ 6,026 At September 30, 2021 and December 31, 2020 , there were 32 and 12 securities, respectively, in an unrealized loss position. Allowance for Credit Losses of Available-for-Sale Fixed-Maturity Securities The Company regularly reviews its individual investment securities for credit impairment. The Company considers various factors in determining whether a credit loss exists for each individual security, including-  the financial condition and near-term prospects of the issuer, including any specific events that may affect its operations or earnings;  the extent to which the market value of the security has been below its cost or amortized cost;  general market conditions and industry or sector specific factors and other qualitative factors;  nonpayment by the issuer of its contractually obligated interest and principal payments; and  the Company’s intent and ability to hold the investment for a period of time sufficient to allow for the recovery of costs. The table below summarizes the activity in the allowance for credit losses of available-for-sale securities for the three and nine months ended September 30, 2021 and 2020: 2021 2020 Balance at January 1 $ 588 $ — Credit loss expense — 439 Reductions for securities sold ( 9 ) — Balance at March 31 $ 579 $ 439 Credit loss expense — 87 Reductions for securities exchanged ( 579 ) — Balance at June 30 $ — $ 526 Credit loss expense — 70 Balance at September 30 $ — $ 596 b) Equity Securities The Company holds investments in equity securities measured at fair values which are readily determinable. At September 30, 2021 and December 31, 2020, the cost, gross unrealized gains and losses, and estimated fair value of the Company’s equity securities were as follows: Gross Gross Estimated Cost Gain Loss Value September 30, 2021 $ 46,771 $ 4,592 $ ( 1,140 ) $ 50,223 December 31, 2020 $ 47,029 $ 4,649 $ ( 548 ) $ 51,130 The table below presents the portion of unrealized gains and losses in the Company’s consolidated statements of income for the periods related to equity securities still held. Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Net (losses) gains recognized $ ( 916 ) $ 1,521 $ 2,620 $ ( 2,363 ) Exclude: Net realized gains (losses) recognized for 953 181 3,269 ( 1,782 ) Net unrealized (losses) gains recognized $ ( 1,869 ) $ 1,340 $ ( 649 ) $ ( 581 ) Sales of Equity Securities Proceeds received, and the gross realized gains and losses from sales of equity securities, for the three and nine months ended September 30, 2021 and 2020 were as follows: Gross Gross Proceeds Gains Losses Three months ended September 30, 2021 $ 24,781 $ 1,141 $ ( 188 ) Three months ended September 30, 2020 $ 4,930 $ 244 $ ( 63 ) Nine months ended September 30, 2021 $ 81,292 $ 4,266 $ ( 997 ) Nine months ended September 30, 2020 $ 17,385 $ 1,213 $ ( 2,995 ) c) Limited Partnership Investments The Company has interests in limited partnerships that are not registered or readily tradeable on a securities exchange. These partnerships are private equity funds managed by general partners who make decisions with regard to financial policies and operations. As such, the Company is not the primary beneficiary and does not consolidate these partnerships. The following table provides information related to the Company’s investments in limited partnerships: September 30, 2021 December 31, 2020 Carrying Unfunded Carrying Unfunded Investment Strategy Value Balance (%)(a) Value Balance (%)(a) Primarily in senior secured loans and, to a $ 6,100 $ 2,085 15.37 $ 8,131 $ 2,085 15.37 Value creation through active distressed debt 4,198 — 1.76 5,512 — 1.76 High returns and long-term capital appreciation 6,179 1,401 0.18 6,513 1,401 0.18 Value-oriented investments in less liquid and 4,338 — 0.47 4,262 — 0.47 Value-oriented investments in mature real 5,224 5,494 2.24 3,273 6,818 2.24 Risk-adjusted returns on credit and equity — 5,000 — — — — Total $ 26,039 $ 13,980 $ 27,691 $ 10,304 (a) Represents the Company’s percentage investment in the fund at each balance sheet date. (b) Except under certain circumstances, withdrawals from the funds or any assignments are not permitted. Distributions, except income from late admission of a new limited partner, will be received when underlying investments of the funds are liquidated. (c) Expected to have a ten-year term. Although the capital commitment period has expired, there are still follow-on investments and pending commitments that require additional fundings. (d) Expected to have a three-year term from June 30, 2018. The term has been extended for a one-year additional period to June 30, 2022. Although the capital commitment period has ended, the general partner could still request an additional funding of approximately $ 843 under certain circumstances. (e) At the fund manager’s discretion, the term of the fund may be extended for up to two additional one-year periods. (f) Expected to have a ten-year term. The capital commitment period has expired but the general partner may request additional funding for follow-on investment. (g) With the consent of a supermajority of partners, the term of the fund may be extended for up to three additional one-year periods. (h) Expected to have a six-year term from the commencement date, which can be extended for up to two additional one-year periods with the consent of either the advisory committee or a majority of limited partners. (i) The capital commitment period has ended but an additional funding may be requested. (j) Expected to have an eight-year term from November 27, 2019. (k) Expected to have an eight-year term after the final admission date. The following is the summary of aggregated unaudited financial information of limited partnerships included in the investment strategy table above, which in certain cases is presented on a three-month lag due to the unavailability of information at the Company’s respective balance sheet dates. The financial statements of these limited partnerships are audited annually. Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Operating results: Total income $ ( 13,796 ) $ 259,635 $ 359,885 $ ( 1,421,381 ) Total expenses ( 24,828 ) ( 26,637 ) ( 105,548 ) ( 107,157 ) Net (loss) income $ ( 38,624 ) $ 232,998 $ 254,337 $ ( 1,528,538 ) September 30, December 31, 2021 2020 Balance sheet: Total assets $ 5,562,430 $ 5,529,199 Total liabilities $ 505,843 $ 612,048 For the three and nine months ended September 30, 2021 , the Company recognized net investment income of $ 1,132 and $ 3,491 , respectively. During the three and nine months ended September 30, 2021 , the Company received total cash distributions of $ 1,535 and $ 5,980 , respectively, including returns on investment of $ 553 and $ 2,345 , respectively. For the three and nine months ended September 30, 2020, the Company recognized net investment income of $ 689 and net investment loss of $ 2,058 , respectively. During the three and nine months ended September 30, 2020, the Company received total cash distributions of $ 850 and $ 1,742 , respectively, including returns on investment of $ 72 and $ 650 , respectively. At September 30, 2021 and December 31, 2020 , the Company’s net cumulative contributed capital to the partnerships at each respective balance sheet date totaled $ 26,474 and $ 29,272 , respectively, and the Company’s maximum exposure to loss aggregated $ 26,039 and $ 27,691 , respectively. d) Investment in Unconsolidated Joint Venture Melbourne FMA, LLC, a wholly owned subsidiary, currently has an equity investment in FMKT Mel JV, a Florida limited liability company treated as a joint venture under U.S. GAAP. At September 30, 2021 and December 31, 2020 , the Company’s maximum exposure to loss relating to the variable interest entity was $ 370 and $ 705 , respectively, representing the carrying value of the investment. In September 2021, FMKT Mel JV sold one of its remaining outparcels and recognized a gain on sale of $ 540 . During the three months ended September 30, 2021, the Company received a cash distribution of $ 737 , including return on investment of $ 114 . There were no cash distributions during the nine months ended September 30, 2020. At September 30, 2021 and December 31, 2020 , there was no undistributed income from this equity method investment. The following tables provide FMJV’s summarized unaudited financial results and the unaudited financial positions: Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Operating results: Total revenues $ 540 $ — $ 540 $ — Total expenses ( 14 ) ( 19 ) ( 70 ) ( 51 ) Net income (loss) $ 526 $ ( 19 ) $ 470 $ ( 51 ) The Company’s share of net income (loss)* $ 473 $ ( 18 ) $ 423 $ ( 46 ) * Included in net investment income in the Company’s consolidated statements of income. September 30, December 31, 2021 2020 Balance sheet: Property and equipment, net $ 362 $ 705 Cash 37 70 Other 18 13 Total assets $ 417 $ 788 Other liabilities $ 6 $ 5 Members’ capital 411 783 Total liabilities and members’ capital $ 417 $ 788 Investment in unconsolidated joint venture, at equity** $ 370 $ 705 ** Includes the 90 % share of FMKT Mel JV’s operating results. e) Real Estate Investments Real estate investments consist of the following as of September 30, 2021 and December 31, 2020: September 30, December 31, 2021 2020 Land $ 39,069 $ 39,069 Land improvements 11,917 11,917 Buildings 29,405 29,115 Tenant and leasehold improvements 1,488 1,487 Other 1,229 1,465 Total, at cost 83,108 83,053 Less: accumulated depreciation and amortization ( 9,445 ) ( 8,581 ) Real estate investments $ 73,663 $ 74,472 For the nine months ended September 30, 2021, the Company incurred a $ 21 loss on disposal of assets related to a closure of a restaurant. Depreciation and amortization expense related to real estate investments was $ 475 and $ 431 for the three months ended September 30, 2021 and 2020 , respectively, and $ 1,445 and $ 1,318 for the nine months ended September 30, 2021 and 2020, respectively. g) Net Investment Income (Loss) Net investment income (loss), by source, is summarized as follows: Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Available-for-sale fixed-maturity securities $ 266 $ 771 $ 1,091 $ 3,529 Equity securities 322 336 1,013 970 Investment expense ( 134 ) ( 125 ) ( 388 ) ( 367 ) Limited partnership investments 1,132 689 3,491 ( 2,058 ) Real estate investments 305 ( 34 ) 3,646 ( 299 ) Net income (loss) from unconsolidated 473 ( 18 ) 423 ( 46 ) Cash and cash equivalents 156 212 473 1,513 Short-term investments — 1 — 2 Net investment income $ 2,520 $ 1,832 $ 9,749 $ 3,244 For the nine months ended September 30, 2021, income from real estate investments included a net gain of $ 2,790 resulting from a legal settlement with The Kroger Co. in a lawsuit filed by a real estate subsidiary of the Company to enforce a guaranty of a commercial lease. h) Other Investments From time to time, the Company may invest in financial assets other than stocks, mutual funds and bonds. For the three and nine months ended September 30, 2021, net realized gains related to other investments were $ 191 and $ 1,018 , respectively. There were net realized gains of $ 17 related to other investments for the three and nine months ended September 30, 2020. |
Comprehensive Income (Loss)
Comprehensive Income (Loss) | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
Comprehensive Income (Loss) | Note 6 -- Comprehensive Income (Loss) Comprehensive income (loss) includes net income and other comprehensive income or loss, which for the Company includes changes in unrealized gains or losses of investments carried at fair value and changes in the allowance for credit losses related to these investments. Reclassification adjustments for realized (gains) losses are reflected in net realized investment gains (losses) on the consolidated statements of income. The components of other comprehensive income or loss and the related tax effects allocated to each component were as follows: Three Months Ended Three Months Ended September 30, 2021 September 30, 2020 Before Income Tax Net of Before Income Tax Net of Tax Effect Tax Tax Effect Tax Net unrealized (losses) gains $ ( 258 ) $ ( 63 ) $ ( 195 ) $ 247 $ 61 $ 186 Credit losses on investments — — — 70 17 53 Call and repayment gains charged to — — — ( 15 ) ( 4 ) ( 11 ) Reclassification adjustment for realized ( 88 ) ( 22 ) ( 66 ) 21 5 16 Total other comprehensive (losses) gains $ ( 346 ) $ ( 85 ) $ ( 261 ) $ 323 $ 79 $ 244 Nine Months Ended Nine Months Ended September 30, 2021 September 30, 2020 Before Income Tax Net of Before Income Tax Net of Tax Effect Tax Tax Effect Tax Net unrealized (losses) gains $ ( 341 ) $ ( 83 ) $ ( 258 ) $ 56 $ 14 $ 42 Credit losses on investments — — — 596 146 450 Call and repayment gains charged to ( 2 ) ( 1 ) ( 1 ) ( 231 ) ( 56 ) ( 175 ) Reclassification adjustment for realized ( 665 ) ( 163 ) ( 502 ) ( 1,133 ) ( 278 ) ( 855 ) Total other comprehensive losses $ ( 1,008 ) $ ( 247 ) $ ( 761 ) $ ( 712 ) $ ( 174 ) $ ( 538 ) |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 7 -- Fair Value Measurements The Company records and discloses certain financial assets at their estimated fair values. The fair value hierarchy prioritizes the inputs to valuation techniques used to measure fair value into three broad levels as follows: Level 1 - Unadjusted quoted prices in active markets for identical assets. Level 2 - Other inputs that are observable for the asset, either directly or indirectly such as quoted prices for identical assets that are not observable throughout the full term of the asset. Level 3 - Inputs that are unobservable. Valuation Methodology Cash and Cash Equivalents Cash and cash equivalents primarily consist of money-market funds and certificates of deposit maturing within 90 days. Their carrying value approximates fair value due to the short maturity and high liquidity of these funds. Restricted Cash Restricted cash represents cash held by state authorities and the carrying value approximates fair value. Fixed-Maturity and Equity Securities Estimated fair values of the Company’s fixed-maturity and equity securities are determined in accordance with U.S. GAAP, using valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. Fair values are generally measured using quoted prices in active markets for identical securities or other inputs that are observable either directly or indirectly, such as quoted prices for similar securities. In those instances where observable inputs are not available, fair values are measured using unobservable inputs. Unobservable inputs reflect the Company’s own assumptions about the assumptions that market participants would use in pricing the security and are developed based on the best information available in the circumstances. Fair value estimates derived from unobservable inputs are significantly affected by the assumptions used, including the discount rates and the estimated amounts and timing of future cash flows. The derived fair value estimates cannot be substantiated by comparison to independent markets and are not necessarily indicative of the amounts that would be realized in a current market exchange. The estimated fair values for securities that do not trade on a daily basis are determined by management, utilizing prices obtained from an independent pricing service and information provided by brokers, which are level 2 inputs. Management reviews the assumptions and methods utilized by the pricing service and then compares the relevant data and pricing to broker-provided data. The Company gains assurance of the overall reasonableness and consistent application of the assumptions and methodologies and compliance with accounting standards for fair value determination through ongoing monitoring of the reported fair values. Revolving Credit Facility The Company’s revolving credit facility is a variable-rate loan. The interest rate is periodically adjusted based on the London Interbank Offered Rate plus a spread. As a result, its carrying value approximates fair value. Long-Term Debt The following table summarizes components of the Company’s long-term debt and methods used in estimating their fair values: Maturity Date Valuation Methodology 4.25 % Convertible senior notes 2037 Quoted price 3.90 % Promissory note 2032 Discounted cash flow method/Level 3 inputs 3.75 % Callable promissory note 2036 Discounted cash flow method/Level 3 inputs 4.55 % Promissory note 2036 Discounted cash flow method/Level 3 inputs Assets Measured at Estimated Fair Value on a Recurring Basis The following table presents information about the Company’s financial assets measured at estimated fair value on a recurring basis. The table indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value as of September 30, 2021 and December 31, 2020: Fair Value Measurements Using (Level 1) (Level 2) (Level 3) Total As of September 30, 2021 Financial Assets: Cash and cash equivalents $ 569,134 $ — $ — $ 569,134 Restricted cash $ 2,400 $ — $ — $ 2,400 Fixed-maturity securities: U.S. Treasury and U.S. government agencies $ 10,253 $ 2,700 $ — $ 12,953 Corporate bonds 28,525 — — 28,525 State, municipalities, and political subdivisions — 1,817 — 1,817 Exchange-traded debt 2,289 — — 2,289 Redeemable preferred stock 469 — — 469 Total available-for-sale securities $ 41,536 $ 4,517 $ — $ 46,053 Equity securities $ 50,223 $ — $ — $ 50,223 Fair Value Measurements Using (Level 1) (Level 2) (Level 3) Total As of December 31, 2020 Financial Assets: Cash and cash equivalents $ 431,341 $ — $ — $ 431,341 Restricted cash $ 2,400 $ — $ — $ 2,400 Fixed-maturity securities: U.S. Treasury and U.S. government agencies $ 11,236 $ 2,732 $ — $ 13,968 Corporate bonds 50,931 — — 50,931 State, municipalities, and political subdivisions — 3,081 — 3,081 Exchange-traded debt 3,707 — — 3,707 Redeemable preferred stock 35 — — 35 Total available-for-sale securities $ 65,909 $ 5,813 $ — $ 71,722 Equity securities $ 51,130 $ — $ — $ 51,130 Assets and Liabilities Carried at Other Than Estimated Fair Value The following tables present fair value information for assets and liabilities that are carried on the consolidated balance sheets at amounts other than fair value as of September 30, 2021 and December 31, 2020: Carrying Fair Value Measurements Using Estimated Value (Level 1) (Level 2) (Level 3) Fair Value As of September 30, 2021 Financial Liabilities: Long-term debt: 4.25 % Convertible senior notes $ 56,227 $ — $ 103,490 $ — $ 103,490 3.90 % Promissory note 9,371 — — 10,598 10,598 3.75 % Callable promissory note 7,241 — — 7,986 7,986 4.55 % Promissory note 5,208 — — 6,159 6,159 Total long-term debt $ 78,047 $ — $ 103,490 $ 24,743 $ 128,233 Carrying Fair Value Measurements Using Estimated Value (Level 1) (Level 2) (Level 3) Fair Value As of December 31, 2020 Financial Liabilities: Revolving credit facility $ 23,750 $ — $ 23,750 $ — $ 23,750 Long-term debt: 4.25 % Convertible senior notes $ 133,964 $ — $ 147,236 $ — $ 147,236 3.90 % Promissory note 9,617 — — 10,044 10,044 3.75 % Callable promissory note 7,502 — — 7,747 7,747 4.55 % Promissory note 5,385 — — 5,809 5,809 Total long-term debt $ 156,468 $ — $ 147,236 $ 23,600 $ 170,836 |
Intangible Assets, Net
Intangible Assets, Net | 9 Months Ended |
Sep. 30, 2021 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Intangible Assets, Net | Note 8 -- Intangible Assets, Net The Company’s intangible assets, net consist of the following: September 30, December 31, 2021 2020 Anchor tenant relationships (a) $ 1,761 $ 1,761 In-place leases 4,215 4,215 Policy renewal rights - United 7,634 — Non-compete agreement - United (b) 195 — Total, at cost 13,805 5,976 Less: accumulated amortization ( 2,998 ) ( 2,408 ) Intangible assets, net $ 10,807 $ 3,568 The remaining weighted-average amortization periods for the intangible assets at September 30, 2021 are summarized in the table below: Anchor tenant relationships* 12.6 years In-place leases 9.9 years Policy renewal rights - United (c) (a) An anchor tenant is a tenant that attracted more customers than other tenants. (b) The entire amount was fully amortized in June 2021. (c) Will be amortized over four years after the policy replacement date. The Company recorded intangible assets of $ 7,829 representing the renewal rights and non-compete agreement described in Note 1 -- “Nature of Operations” in exchange for 100,000 shares of HCI’s common stock and contingent consideration which is a 6 % commission on any replacement premium in excess of $ 80,000 . The contingent consideration was estimated at $ 2,419 which was included in other liabilities on the consolidated balance sheet. Due to the postponement of the renewal and/or replacement of United’s policies as described in Note 1 -- "Nature of Operations,” amortization of the policy renewal rights intangible asset has yet to begin. The renewal rights and non-compete intangible assets acquired do not meet the definition of a business as substantially all of the fair value of the intangible assets acquired are concentrated in a group of similar assets. Therefore, the Company accounted for the purchase of the renewal rights and non-compete intangible assets as an asset acquisition. Total consideration paid consisted of $ 5,410 worth of HCI’s common stock plus a contingent liability of $ 2,419 . |
Other Assets
Other Assets | 9 Months Ended |
Sep. 30, 2021 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |
Other Assets | Note 9 -- Other Assets The following table summarizes the Company’s other assets: September 30, December 31, 2021 2020 Benefits receivable related to retrospective reinsurance contracts $ 1,819 $ 10,920 Prepaid expenses 3,493 2,365 Deposits 969 445 Lease acquisition costs, net 521 453 Other 6,372 8,428 Total other assets $ 13,174 $ 22,611 |
Revolving Credit Facility
Revolving Credit Facility | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Revolving Credit Facility | Note 10 -- Revolving Credit Facility In March 2021, the Company repaid the entire credit facility balance of $ 23,750 . For the three months ended September 30, 2021 and 2020, interest expense was $ 24 a nd $ 108 , respectively, includi ng $ 25 a nd $ 39 of amortization of issuance costs, respectively. For the nine months ended September 30, 2021 and 2020, interest expense was $ 153 and $ 423 , respectively, including $ 74 and $ 118 of amortization of issuance costs, respectively. At September 30, 2021 , the Company was in compliance with all required covenants with no borrowings outstanding. The borrowing capacity of the facility is now $ 65,000 . |
Long-Term Debt
Long-Term Debt | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Note 11 -- Long-Term Debt The following table summarizes the Company’s long-term debt: September 30, December 31, 2021 2020 4.25% Convertible senior notes, due March 1, 2037 $ 56,409 $ 139,200 3.90% Promissory note, due through April 1, 2032 9,519 9,777 3.75% Callable promissory note, due through 7,337 7,607 4.55% Promissory note, due through August 1, 2036 5,287 5,470 Finance lease liabilities, due through October 15, 2024 36 43 Total principal amount 78,588 162,097 Less: unamortized discount and issuance costs* ( 505 ) ( 5,586 ) Total long-term debt $ 78,083 $ 156,511 * Effective January 1, 2021, the balance includes only unamortized issuance costs. See Adoption of New Accounting Standards in Note 2 -- “Summary of Significant Accounting Policies.” The following table summarizes future maturities of long-term debt as of September 30, 2021 , which takes into consideration the assumption that the 4.25 % Convertible Senior Notes are repurchased at the earliest call date. Due in 12 months following September 30, 2021 $ 57,409 2022 1,036 2023 1,065 2024 1,106 2025 1,151 Thereafter 16,821 Total $ 78,588 Information with respect to interest expense related to long-term debt is as follows: Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Interest Expense: Contractual interest $ 1,421 $ 1,736 $ 4,832 $ 5,374 Non-cash expense (a) 219 1,053 758 3,174 Capitalized interest (b) — ( 41 ) — ( 125 ) $ 1,640 $ 2,748 $ 5,590 $ 8,423 (a) Includes amortization of debt discount and issuance costs. Amortization of debt discount discontinued effective January 1, 2021. See Adoption of New Accounting Standards in Note 2 -- “Summary of Significant Accounting Policies” for additional information. (b) Interest was capitalized for a construction project. Convertible Senior Notes 4.25% Convertible Notes . The Company’s recent cash dividends on common stock have exceeded $ 0.35 per share, resulting in adjustments to the conversion rate of the 4.25% Convertible Notes. Accordingly, as of September 30, 2021 , the conversion rate of the Company’s 4.25 % Convertible Notes was 16.4668 shares of common stock for each $1 in principal amount, which was the equivalent of approximately $ 60.73 per share. As the Company’s common shares traded above 130 % of the conversion price for at least 20 trading days during the final 30 trading days of both the second and third quarters of 2021, the 4.25% Convertible Notes are convertible by all holders beginning July 1 through December 31, 2021 in accordance with the terms specified in the indenture. During the third quarter of 2021, the Company entered into various agreements with certain holders of the 4.25% Convertible Notes whereby the holders converted $ 82,480 in aggregate principal of 4.25% Convertible Notes for aggregate consideration of 1,356,835 shares of HCI’s common stock and $ 1,414 of cash consideration. These transactions were accounted for as induced conversions based on the limited period of time the offers were open and the inclusion of cash consideration being one of the conversion options specified in the indenture. As such, the Company recognized debt conversion expense of $ 1,273 during the three months ended September 30, 2021 consisting of the difference between the fair value of all consideration transferred and the fair value of common stock issued. An additional $ 311 in aggregate principal of 4.25% Convertible Notes were converted by election from holders of 4.25% Convertible Notes for aggregate consideration of 5,119 shares of HCI’s common stock during the three months ended September 30, 2021. As of September 30, 2021 , the remaining amortization period of the debt issuance costs for the 4.25% Convertible Notes was expected to be 5 months . |
Reinsurance
Reinsurance | 9 Months Ended |
Sep. 30, 2021 | |
Insurance [Abstract] | |
Reinsurance | Note 12 -- Reinsurance The Company cedes a portion of its homeowners’ insurance exposure to other entities under catastrophe excess of loss reinsurance contracts and one quota share reinsurance agreement. Ceded premiums under most catastrophe excess of loss reinsurance contracts are subject to revision resulting from subsequent adjustments in total insured value. Under the terms of the quota share reinsurance agreement, the Company is entitled to a 30 % ceding commission on ceded premiums written. The reinsurance premiums under one flood catastrophe excess of loss reinsurance contract are generally determined on a quarterly basis based on the premiums associated with the applicable flood total insured value in force on the last day of the preceding quarter. The Company remains liable for claims payments in the event that any reinsurer is unable to meet its obligations under the reinsurance agreements. Failure of reinsurers to honor their obligations could result in losses to the Company. The Company evaluates the financial condition of its reinsurers and monitors concentrations of credit risk arising from similar geographic regions, activities or economic characteristics of the reinsurers to minimize its exposure to significant losses from reinsurer insolvencies. The Company contracts with a number of reinsurers to secure its annual reinsurance coverage, which generally becomes effective June 1 st of each year. The Company purchases reinsurance each year taking into consideration probable maximum losses and reinsurance market conditions. The impact of the reinsurance contracts on premiums written and earned is as follows: Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Premiums Written: Direct $ 143,426 $ 116,464 $ 396,781 $ 364,942 Assumed 30,840 ( 13 ) 88,311 ( 92 ) Gross written 174,266 116,451 485,092 364,850 Ceded ( 55,577 ) ( 44,231 ) ( 145,112 ) ( 109,304 ) Net premiums written $ 118,689 $ 72,220 $ 339,980 $ 255,546 Premiums Earned: Direct $ 120,763 $ 106,337 $ 346,788 $ 303,956 Assumed 29,046 357 73,403 2,906 Gross earned 149,809 106,694 420,191 306,862 Ceded ( 55,577 ) ( 44,231 ) ( 145,112 ) ( 109,304 ) Net premiums earned $ 94,232 $ 62,463 $ 275,079 $ 197,558 During the three and nine months ended September 30, 2021, the Company recognized ceded losses of $ 1,830 and $ 2,424 , respectively, as a reduction in losses and loss adjustment expenses. During the three and nine months ended September 30, 2020, the Company recognized ceded losses of $ 1,871 and $ 2,220 , respectively, as a reduction in losses and loss adjustment expenses. At September 30, 2021 and December 31, 2020, there were 54 and 38 reinsurers, respectively, participating in the Company’s reinsurance program. Total net amounts recoverable and receivable from reinsurers at September 30, 2021 and December 31, 2020 were $ 49,126 and $ 85,146 , respectively. Approximately 66.4 % of the gross reinsurance recoverable balance at September 30, 2021 was receivable from three reins urers, including the Florida Hurricane Catastrophe Fund, a state trust fund. Based on all available information considered in the rating-based method, the Company recognized decreases in credit loss expense of $ 13 and $ 41 for the three and nine months ended September 30, 2021, respectively. For the three and nine months ended September 30, 2020, the Company derecognized credit loss expenses of $ 14 and $ 363 , respectively. Allowances for credit losses related to the reinsurance recoverable balance were $ 44 and $ 85 at September 30, 2021 and December 31, 2020, respectively. The Company has reinsurance contracts that include retrospective provisions that adjust premiums in the event losses are minimal or zero. For the three and nine months ended September 30, 2021, the Company recognized reductions in premiums ceded of $ 1,364 and $ 9,619 , respectively, related to these adjustments in the consolidated statements of income. For the three and nine months ended September 30, 2020, the Company recognized reductions in premiums ceded of $ 4,680 and $ 10,440 , respectively. Amounts receivable pursuant to retrospective provisions are reflected in other assets. At September 30, 2021 and December 31, 2020, other assets included $ 1,819 and $ 10,920 , respectively. In June 2021, the Company received $ 18,720 of premium refund under the retrospective reinsurance contract that ended May 31, 2021. Management believes the credit risk associated with the collectability of accrued benefits is minimal as the amount receivable is concentrated with two reinsurers and the Company monitors the creditworthiness of these reinsurers based on available information about each reinsurer’s financial condition. Effective January 2021, the Company began providing quota share reinsurance on all in-force, new and renewal policies issued by United. The policies were issued in the states of Connecticut, New Jersey, Massachusetts and Rhode Island. For the three and nine months ended September 30, 2021, assumed premiums written related to United were $ 30,840 and $ 88,311 , respectively. At September 30, 2021, the Company had a net balance of $ 6,636 due from United, consisting of premiums receivable of $ 14,951 offset by ceding commission payable of $ 3,588 and payable on paid losses and loss adjustment expenses of $ 4,727 . |
Losses and Loss Adjustment Expe
Losses and Loss Adjustment Expenses | 9 Months Ended |
Sep. 30, 2021 | |
Insurance [Abstract] | |
Losses and Loss Adjustment Expenses | Note 13 -- Losses and Loss Adjustment Expenses The liability for losses and loss adjustment expenses (“LAE”) is determined on an individual case basis for all claims reported. The liability also includes amounts for unallocated expenses, anticipated future claim development and losses incurred but not reported. The Company primarily writes insurance in the states which could be exposed to hurricanes or other natural catastrophes. The occurrence of a major catastrophe could have a significant effect on the Company’s quarterly results and cause a temporary disruption of the normal operations of the Company. However, the Company is unable to predict the frequency or severity of any such events that may occur in the near term or thereafter. Activity in the liability for losses and LAE is summarized as follows: Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Net balance, beginning of period* $ 154,901 $ 123,129 $ 141,065 $ 98,174 Incurred, net of reinsurance, related to: Current period 53,834 50,543 147,064 116,839 Prior period 8,830 1,200 17,268 2,825 Total incurred, net of reinsurance 62,664 51,743 164,332 119,664 Paid, net of reinsurance, related to: Current period ( 31,663 ) ( 21,175 ) ( 59,265 ) ( 36,988 ) Prior period ( 22,237 ) ( 9,386 ) ( 82,467 ) ( 36,539 ) Total paid, net of reinsurance ( 53,900 ) ( 30,561 ) ( 141,732 ) ( 73,527 ) Net balance, end of period 163,665 144,311 163,665 144,311 Add: reinsurance recoverable before allowance for 39,512 75,034 39,512 75,034 Gross balance, end of period $ 203,177 $ 219,345 $ 203,177 $ 219,345 * Net balance represents beginning-of-period liability for unpaid losses and LAE less beginning-of-period reinsurance recoverable for unpaid losses and LAE. The establishment of loss and LAE reserves is an inherently uncertain process and changes in loss and LAE reserve estimates are expected as these estimates are subject to the outcome of future events. Changes in estimates, or differences between estimates and amounts ultimately paid, are reflected in the operating results of the period during which such estimates are adjusted. During the three and nine months ended September 30, 2021, the Company recognized losses related to prior periods of $ 8,830 and $ 17,268 , respectively, primarily to increase the reserve for the 2020 loss year resulting from increased litigation with regards to Hurricane Sally and Tropical Storm Eta. Losses and LAE for the three and nine months ended September 30, 2021 included estimated losses, net of reinsurance, of approximately $ 19,830 and $ 43,330 , respectively, related to policies assumed from United, approximately $ 9,767 and $ 12,367 , respectively, of which pertained to TypTap. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
Segment Information | Note 14 -- Segment Information The Company identifies its operating divisions or segments based on managerial emphasis, organizational structure and revenue source. In the first quarter of 2021, the Company reorganized its operations to focus on specific business segments, resulting in the creation of TTIG with a separate workforce, board of directors and financial reporting structure. Companies under TTIG include TypTap, TypTap Management Company, Exzeo USA, Inc., and Cypress Tech Development Company, Inc., the parent company of an India company, Exzeo Software Private Limited. TTIG and its subsidiaries are considered a new reporting segment known as TypTap Group. The Company now has four reportable segments: HCPCI insurance operations, TypTap Group, real estate operations, and corporate and other. Due to their economic characteristics, the Company’s property and casualty insurance division and reinsurance operations, excluding the insurance operations under TypTap Group, are grouped together into one reportable segment under HCPCI insurance operations. The TypTap Group segment includes its property and casualty insurance operations, information technology operations and its management company’s activities. The real estate operations segment includes companies engaged in operating commercial properties the Company owns for investment purposes or for use in its own operations. The corporate and other segment represents the activities of the holding companies and any other companies that do not meet the quantitative and qualitative thresholds for a reportable segment. The determination of segments may change over time due to changes in operational emphasis, revenues, and results of operations. The Company’s chief executive officer, who serves as the Company’s chief operating decision maker, evaluates each division’s financial and operating performance based on revenue and operating income. For the three months ended September 30, 2021 and 2020, revenues from the HCPCI insurance operations segment before intracompany elimination represented 73.9 % and 59.1 %, respectively, and revenues from the TypTap Group segment represented 24.0 % and 12.6 %, respectively, of total revenues of all operating segments. For the nine months ended September 30, 2021 and 2020, revenues from the HCPCI insurance operations segment before intracompany elimination represented 76.4 % and 73.8 %, respectively, and revenues from the TypTap Group segment represented 20.7 % and 12.7 %, respectively, of total revenues of all operating segments. At September 30, 2021 and December 31, 2020, HCPCI insurance operations’ total assets represented 60.2 % and 68.9 %, respectively, and TypTap Group’s total assets represented 26.3 % and 16.7 %, respectively, of the combined assets of all operating segments. The following tables present segment information reconciled to the Company’s consolidated statements of income. Intersegment transactions are not eliminated from segment results. However, intracompany transactions are eliminated in segment results below. HCPCI Insurance TypTap Real Corporate/ Reclassification/ For Three Months Ended September 30, 2021 Operations Group Estate (a) Other (b) Elimination Consolidated Revenue: Gross premiums earned $ 98,256 $ 51,553 $ — $ — $ — $ 149,809 Premiums ceded ( 36,955 ) ( 20,135 ) — — 1,513 ( 55,577 ) Net premiums earned 61,301 31,418 — — 1,513 94,232 Net income from investment portfolio 831 102 — 172 778 1,883 Policy fee income 693 307 — — — 1,000 Other 2,087 480 2,336 489 ( 3,290 ) 2,102 Total revenue 64,912 32,307 2,336 661 ( 999 ) 99,217 Expenses: Losses and loss adjustment expenses 36,928 24,224 — — 1,512 62,664 Amortization of deferred policy acquisition costs 12,402 9,250 — — — 21,652 Other policy acquisition expenses 633 1,110 — — ( 55 ) 1,688 Interest expense — 1 231 1,432 — 1,664 Depreciation and amortization 18 342 576 171 ( 603 ) 504 Debt conversion expense — — — 1,273 — 1,273 Personnel and other operating expenses 5,896 7,685 814 3,734 ( 1,853 ) 16,276 Total expenses 55,877 42,612 1,621 6,610 ( 999 ) 105,721 Income (loss) before income taxes $ 9,035 $ ( 10,305 ) $ 715 $ ( 5,949 ) $ — $ ( 6,504 ) Total revenue from non-affiliates (c) $ 65,629 $ 32,701 $ 1,997 $ 402 Gross premiums written $ 118,280 $ 55,987 (a) Other revenue under real estate primarily consisted of rental income from investment properties. (b) Other revenue under corporate and other primarily consisted of revenue from marina business. (c) Represents amounts before reclassification of certain revenue and expenses to conform with an insurance company’s presentation. HCPCI Insurance TypTap Real Corporate/ Reclassification/ For Three Months Ended September 30, 2020 Operations Group Estate (a) Other (b) Elimination Consolidated Revenue: Gross premiums earned (c) $ 89,283 $ 19,854 $ — $ — $ ( 2,443 ) $ 106,694 Premiums ceded ( 36,503 ) ( 10,171 ) — — 2,443 ( 44,231 ) Net premiums earned 52,780 9,683 — — — 62,463 Net income from investment portfolio 1,866 363 — 1,340 ( 290 ) 3,279 Policy fee income 684 211 — — — 895 Other 759 24 39,353 290 ( 3,036 ) 37,390 Total revenue 56,089 10,281 39,353 1,630 ( 3,326 ) 104,027 Expenses: Losses and loss adjustment expenses 44,338 7,405 — — — 51,743 Amortization of deferred policy acquisition costs 10,433 3,536 — — — 13,969 Other policy acquisition expenses 160 531 — — 56 747 Interest expense — — 463 2,631 ( 238 ) 2,856 Depreciation and amortization 21 279 567 179 ( 585 ) 461 Loss on repurchases of convertible senior notes — — — — — — Loss on extinguishment of debt — — 98 — — 98 Personnel and other operating expenses 5,896 4,527 1,325 3,428 ( 2,559 ) 12,617 Total expenses 60,848 16,278 2,453 6,238 ( 3,326 ) 82,491 (Loss) income before income taxes $ ( 4,759 ) $ ( 5,997 ) $ 36,900 $ ( 4,608 ) $ — $ 21,536 Total revenue from non-affiliates (d) $ 55,227 $ 10,778 $ 38,859 $ 1,208 Gross premiums written $ 89,102 $ 27,349 (a) Other revenue under real estate primarily consisted of rental income from investment properties. (b) Other revenue under corporate and other primarily consisted of revenue from restaurant and marina businesses. (c) Gross premiums earned consist of $ 86,840 from HCPCI and $ 2,443 from a reinsurance company. (d) Represents amounts before reclassification of certain revenue and expenses to conform with an insurance company’s presentation. HCPCI Insurance TypTap Real Corporate/ Reclassification/ For Nine Months Ended September 30, 2021 Operations Group Estate (a) Other (b) Elimination Consolidated Revenue: Gross premiums earned $ 300,827 $ 119,364 $ — $ — $ — $ 420,191 Premiums ceded ( 104,236 ) ( 42,229 ) — — 1,353 ( 145,112 ) Net premiums earned 196,591 77,135 — — 1,353 275,079 Net income from investment portfolio 5,261 933 — 4,059 3,799 14,052 Policy fee income 2,106 856 — — — 2,962 Other 3,420 1,130 9,849 1,316 ( 12,213 ) 3,502 Total revenue 207,378 80,054 9,849 5,375 ( 7,061 ) 295,595 Expenses: Losses and loss adjustment expenses 110,008 52,976 — — 1,348 164,332 Amortization of deferred policy acquisition costs 43,906 20,541 — — — 64,447 Other policy acquisition expenses 2,170 3,071 — — ( 114 ) 5,127 Interest expense — 91 972 4,950 ( 270 ) 5,743 Depreciation and amortization 56 942 1,737 711 ( 1,841 ) 1,605 Debt conversion expense — — — 1,273 — 1,273 Personnel and other operating expenses 17,317 21,007 3,332 8,901 ( 6,184 ) 44,373 Total expenses 173,457 98,628 6,041 15,835 ( 7,061 ) 286,900 Income (loss) before income taxes $ 33,921 $ ( 18,574 ) $ 3,808 $ ( 10,460 ) $ — $ 8,695 Total revenue from non-affiliates (c) $ 206,743 $ 80,893 $ 8,833 $ 4,641 Gross premiums written $ 323,490 $ 161,602 (a) Other revenue under real estate primarily consisted of rental income from investment properties. (b) Other revenue under corporate and other primarily consisted of revenue from marina business. (c) Represents amounts before reclassification of certain revenue and expenses to conform with an insurance company’s presentation. HCPCI Insurance TypTap Real Corporate/ Reclassification/ For Nine Months Ended September 30, 2020 Operations Group Estate (a) Other (b) Elimination Consolidated Revenue: Gross premiums earned (c) $ 255,273 $ 54,829 $ — $ — $ ( 3,240 ) $ 306,862 Premiums ceded ( 93,466 ) ( 19,078 ) — — 3,240 ( 109,304 ) Net premiums earned 161,807 35,751 — — — 197,558 Net income (loss) from investment portfolio 3,787 383 3 ( 1,714 ) ( 1,024 ) 1,435 Policy fee income 1,987 584 — — — 2,571 Other 1,431 87 44,331 1,695 ( 8,984 ) 38,560 Total revenue 169,012 36,805 44,334 ( 19 ) ( 10,008 ) 240,124 Expenses: Losses and loss adjustment expenses 97,621 22,043 — — — 119,664 Amortization of deferred policy acquisition costs 27,103 9,222 — — — 36,325 Other policy acquisition expenses 1,789 1,419 — — — 3,208 Interest expense — 1 1,434 8,090 ( 679 ) 8,846 Depreciation and amortization 63 820 1,862 466 ( 1,793 ) 1,418 Loss on repurchases of convertible senior notes — — — 150 — 150 Loss on extinguishment of debt — — 98 — — 98 Personnel and other operating expenses 16,161 13,244 3,982 10,548 ( 7,536 ) 36,399 Total expenses 142,737 46,749 7,376 19,254 ( 10,008 ) 206,108 Income (loss) before income taxes $ 26,275 $ ( 9,944 ) $ 36,958 $ ( 19,273 ) $ — $ 34,016 Total revenue from non-affiliates (d) $ 167,891 $ 37,421 $ 42,907 $ ( 996 ) Gross premiums written $ 302,142 $ 62,708 (a) Other revenue under real estate primarily consisted of rental income from investment properties. (b) Other revenue under corporate and other primarily consisted of revenue from restaurant and marina businesses. (c) Gross premiums earned consist of $ 252,033 from HCPCI and $ 3,240 from a reinsurance company. (d) Represents amounts before reclassification of certain revenue and expenses to conform with an insurance company’s presentation. The following table presents segment assets reconciled to the Company’s total assets in the consolidated balance sheets: September 30, December 31, 2021 2020 Segments: HCPCI Insurance Operations $ 616,948 $ 648,600 TypTap Group 294,931 157,581 Real Estate Operations 129,198 128,383 Corporate and Other 61,629 29,022 Consolidation and Elimination ( 26,592 ) ( 22,273 ) Total assets $ 1,076,114 $ 941,313 |
Leases
Leases | 9 Months Ended |
Sep. 30, 2021 | |
Leases [Abstract] | |
Leases | Note 15 -- Leases The table below summarizes the Company’s right-of-use (“ROU”) assets and corresponding liabilities for operating and finance leases: September 30, December 31, 2021 2020 Operating leases: ROU Assets $ 2,576 $ 4,002 Liabilities $ 2,578 $ 4,014 Finance leases: ROU Assets $ 86 $ 79 Liabilities $ 36 $ 43 The following table summarizes the Company’s operating and finance leases in which the Company is a lessee: Renewal Other Terms and Class of Assets Initial Term Option Conditions Operating lease: Office equipment 1 to 63 months Yes (a), (b) Office space 3 to 10 years Yes (b), (c) Finance lease: Office equipment 3 to 5 years Not applicable (d) (a) At the end of the lease term, the Company can purchase the equipment at fair market value. (b) There are no variable lease payments. (c) Rent escalation provisions exist. (d) There is a bargain purchase option. As of September 30, 2021, maturities of lease liabilities were as follows: Leases Operating Finance Due in 12 months following September 30, 2021 $ 1,464 $ 20 2022 1,188 15 2023 — 2 Total lease payments 2,652 37 Less: interest and foreign taxes 74 1 Total lease obligations $ 2,578 $ 36 The following table provides quantitative information with regards to the Company’s operating and finance leases. Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Lease costs: Finance lease costs: Amortization – ROU assets* $ 4 $ 4 $ 13 $ 13 Interest expense — 1 1 2 Operating lease costs* 386 404 1,231 560 Short-term lease costs* 100 44 250 135 Total lease costs $ 490 $ 453 $ 1,495 $ 710 Cash paid for amounts included in the Operating cash flows – finance leases $ 1 $ 1 Operating cash flows – operating leases $ 1,237 $ 566 Financing cash flows – finance leases $ 14 $ 13 September 30, 2021 Weighted-average remaining lease term: Finance leases (in years) 3.0 Operating leases (in years) 2.6 Weighted-average discount rate: Finance leases (%) 3.5 Operating leases (%) 2.8 * Included in other operating expenses of the consolidated statements of income. The following table summarizes the Company’s operating leases in which the Company is a lessor: Renewal Other Terms and Class of Assets Initial Term Option Conditions Operating lease: Office space 1 to 3 years Yes (e) Retail space 3 to 20 years Yes (e) Boat docks/wet slips 1 to 12 months Yes (e) (e) There are no purchase options. |
Income Taxes
Income Taxes | 3 Months Ended |
Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 16 -- Income Taxes During the three months ended September 30, 2021, the Company recorded approximately $ 1,636 of income tax benefit, which resulted in an effective tax rate of 25.2 %. During the three months ended September 30, 2020, the Company recorded approximately $ 6,146 of income taxes, which resulted in an effective tax rate of 28.5 %. The decrease in the effective tax rate as compared with the corresponding period in the prior year was primarily attributable to the non-deductibility of certain executive compensation during the three months ended September 30, 2020. During the nine months ended September 30, 2021 and 2020, the Company recorded approximately $ 2,888 and $ 9,143 , respectively, of income taxes, which resulted in effective tax rates of 33.2 % and 26.9 %, respectively. The increase in the effective tax rate in 2021 as compared with the corresponding period in the prior year was primarily attributable to an increase in non-deductible compensation expense related to restricted stock granted to certain executives. The Company’s estimated annual effective tax rate differs from the statutory federal tax rate due to state and foreign income taxes as well as certain nondeductible and tax-exempt items. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 17 -- Earnings Per Share U.S. GAAP requires the Company to use the two-class method in computing basic earnings per share since holders of the Company’s restricted stock have the right to share in dividends, if declared, equally with common stockholders. These participating securities affect the computation of both basic and diluted earnings per share during periods of net income or loss. For a majority-owned subsidiary, its basic and diluted earnings per share are first computed separately. Then, the Company’s proportionate share in that majority-owned subsidiary’s earnings is added to the computation of both basic and diluted earnings per share at a consolidated level. A summary of the numerator and denominator of the basic and diluted earnings per common share is presented below. Three Months Ended Three Months Ended September 30, 2021 September 30, 2020 Loss Shares (a) Per Share Income Shares (a) Per Share (Numerator) (Denominator) Amount (Numerator) (Denominator) Amount Net (loss) income $ ( 4,868 ) $ 15,390 Less: Net income attributable to ( 2,202 ) — Less: TypTap Group's net loss attributable 774 — Net (loss) income attributable to HCI ( 6,296 ) 15,390 Less: Loss (income) attributable to 537 ( 865 ) Basic (Loss) Earnings Per Share: (Loss) income allocated to common ( 5,759 ) 8,023 $ ( 0.72 ) 14,525 7,356 $ 1.97 Effect of Dilutive Securities: Stock options* — — — 37 Convertible senior notes* (b) — — 1,903 2,284 Diluted (Loss) Earnings Per Share: (Loss) income available to common $ ( 5,759 ) 8,023 $ ( 0.72 ) $ 16,428 9,677 $ 1.70 (a) Shares in thousands. (b) See Adoption of New Accounting Standards under Note 2 -- “Summary of Significant Accounting Policies” for additional information. * For the three months ended September 30, 2021, stock options and convertible senior notes were excluded due to anti-dilutive effect. Nine Months Ended Nine Months Ended September 30, 2021 September 30, 2020 Income Shares (a) Per Share Income Shares (a) Per Share (Numerator) (Denominator) Amount (Numerator) (Denominator) Amount Net income $ 5,807 $ 24,873 Less: Net income attributable to redeemable ( 5,175 ) — Less: TypTap Group's net loss attributable to 1,191 — Net income attributable to HCI 1,823 24,873 Less: Income attributable to participating ( 37 ) ( 1,309 ) Basic Earnings Per Share: Income allocated to common stockholders 1,786 7,676 $ 0.23 23,564 7,350 $ 3.21 Effect of Dilutive Securities: Stock options — 182 — 17 Convertible senior notes* (b) — — 5,787 2,330 Warrants — 234 — — Diluted Earnings Per Share: Income available to common stockholders $ 1,786 8,092 $ 0.22 $ 29,351 9,697 $ 3.03 (a) Shares in thousands. (b) See Adoption of New Accounting Standards under Note 2 -- “Summary of Significant Accounting Policies” for additional information. * For the nine months ended September 30, 2021, convertible senior notes were excluded due to anti-dilutive effect. |
Redeemable Noncontrolling Inter
Redeemable Noncontrolling Interest | 9 Months Ended |
Sep. 30, 2021 | |
Noncontrolling Interest [Abstract] | |
Redeemable Noncontrolling Interest | Note 18 -- Redeemable Noncontrolling Interest On February 26, 2021, TTIG completed a capital investment transaction with a fund associated with Centerbridge Partners, L.P. (collectively, the “Lead Investor”), a private investment management fund. Under the investment agreement, TTIG issued 9,000,000 voting shares of its Series A-1 Preferred Stock and 1,000,000 non-voting shares of its Series A-2 Preferred Stock (together “Series A Preferred Stock”), $ 0.001 par value, at a price of $ 10 per share for total proceeds of $ 100,000 . The proceeds will be used for TypTap’s operations and continued expansion. The Company incurred $ 6,262 of related issuance costs. In connection with the transaction, the Lead Investor was granted by HCI warrants to purchase 750,000 shares of HCI’s common stock with an exercise price of $ 54.40 per share. The warrants valued at $ 9,217 or $ 12.29 per warrant were immediately exercisable and will expire on the fourth anniversary of the date of issuance. Dividends Dividends accrue and accumulate from the date of issuance. Cumulative dividends are payable semi-annually in cash or paid-in-kind at TTIG’s option. Cash dividend rates are $ 0.50 per share in Year 1, $ 0.60 per share in Year 2, $ 0.75 per share in Year 3, and $ 0.95 per share in Year 4 and thereafter. The rates for paid-in-kind dividends are $ 0.60 per share in Year 1 and $ 0.70 per share in Year 2. In addition, the Series A Preferred Stock will be paid dividends on an as-converted basis when and if TTIG declares common stock dividends. Conversion Rights The holders of TTIG’s Series A Preferred Stock have the right to convert the stock at any time into shares of TTIG’s common stock with an initial conversion rate of 1 to 1 . The conversion rate will be adjusted under certain conditions. Unless converted earlier, all shares of Series A Preferred Stock will be automatically converted into shares of TTIG’s common stock at the then-applicable conversion rate upon (1) a qualified public offering of TTIG’s common stock with gross proceeds of not less than $ 250,000 with a price per share at least equal to 150 % of the original purchase price of the Series A Preferred Stock, or (2) at the election of requisite holders of a majority of TTIG’s Series A Preferred Stock, whichever comes first. Redemption Rights On or after the fourth anniversary of the issuance date, TTIG’s Series A Preferred Stock is redeemable at the option of the holders at a price equal to the greater of (1) $ 10 per share plus any accrued but unpaid dividends and (2) a fair market value per share determined by an independent valuation firm selected by TTIG’s board of directors. Management determined that the redemption was not probable at September 30, 2021. Guaranty by HCI All payment obligations to the holders of TTIG’s Series A Preferred Stock are fully guaranteed by HCI as long as TTIG’s Series A Preferred Stock is outstanding. As the guarantor, HCI is subject to certain financial covenants. Liquidation Preference In the event of any liquidation, the Series A Preferred Stock ranks senior to TTIG’s common stock with respect to distribution rights. Anti-Dilutive Protection The holders of TTIG’s Series A Preferred Stock receive protection in the form of a down-round feature which will be triggered in the event that TTIG issues additional common equivalent shares at an effective price per share less than $ 10 per share. The following table summarizes the activity of redeemable noncontrolling interest during the nine months ended September 30, 2021: Balance at January 1, 2021 $ — Initial proceeds from Centerbridge 100,000 Increase (decrease): Proceeds allocated to warrants* ( 9,217 ) Issuance costs ( 6,262 ) Issuance costs allocated to warrants* 577 Accrued cash dividends 458 Accretion - increasing dividend rates 336 Balance at March 31, 2021 $ 85,892 Increase (decrease): Accrued cash dividends 1,250 Accretion - increasing dividend rates 929 Balance at June 30, 2021 $ 88,071 Increase (decrease): Dividends paid ( 2,542 ) Accrued cash dividends 1,250 Accretion - increasing dividend rates 952 Balance at September 30, 2021 $ 87,731 *Net decrease related to warrants of $ 8,640 . For the three months ended September 30, 2021, net income attributable to redeemable noncontrolling interest was $ 2,202 , consisting of accrued cash dividends of $ 1,250 and accretion related to increasing dividend rates of $ 952 . For the nine months ended September 30, 2021, net income attributable to redeemable noncontrolling interest was $ 5,175 , consisting of accrued cash dividends of $ 2,958 and accretion related to increasing dividend rates of $ 2,217 . |
Equity
Equity | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
Equity | Note 19 -- Equity Stockholders’ Equity Common Stock The Company’s 2020 stock repurchase plan was considered to be expired and there was no new stock repurchase plan approved by the Board of Directors during 2021. On December 19, 2019, the Board of Directors decided to extend the term of the 2019 stock repurchase plan to March 15, 2020. On March 13, 2020, the Board approved a new stock repurchase plan for 2020 to repurchase up to $ 20,000 of the Company’s common shares before commissions and fees. During the three months ended September 30, 2020, the Company repurchased and retired a total of 457 shares at a weighted average price per share of $ 43.76 under this authorized repurchase plan. The total cost of shares repurchased, inclusive of fees and commissions, during the three months ended September 30, 2020 was $ 20 or $ 43.79 per share. During the nine months ended September 30, 2020, the Company repurchased and retired a total of 129,142 shares at a weighted average price per share of $ 39.93 under this authorized repurchase plan. The total cost of shares repurchased, inclusive of fees and commissions, during the nine months ended September 30, 2020 was $ 5,161 or $ 39.96 per share. On July 7, 2021 , the Company’s Board of Directors declared a quarterly dividend of $ 0.40 per common share. The dividends were paid on September 17, 2021 to stockholders of record on August 20, 2021 . Warrants At September 30, 2021, there were warrants outstanding and exercisable to purchase 750,000 shares of HCI common stock. These warrants were issued by HCI to the Lead Investor described in Note 18 -- “Redeemable Noncontrolling Interest.” Noncontrolling Interests According to its amended Articles of Incorporation, TTIG is authorized to issue 183 million shares of common stock with a par value of $ 0.001 per share, and 37,502,000 shares of preferred stock. In February 2021, TTIG issued 10 million shares of Series A Preferred Stock (see Note 18 -- “Redeemable Noncontrolling Interest”). At September 30, 2021, there were 81,278,175 shares of TTIG’s common stock outstanding, of which 6,278,175 shares were not owned by HCI. In May 2021, TTIG repurchased and retired a total of 52,015 shares of its common stock surrendered by its employees to satisfy payroll tax liabilities associated with the vesting of restricted shares. The total cost of purchasing noncontrolling interests was $ 58 . |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | Note 20 -- Stock-Based Compensation 2012 Omnibus Incentive Plan The Company currently has outstanding stock-based awards granted under the Plan which is currently active and available for future grants. At September 30, 2021 , there were 1,117,275 shares available for grant. Stock Options Stock options granted and outstanding under the incentive plans vest over periods ranging from immediately vested to five years and are exercisable over the contractual term of ten years . A summary of the stock option activity for the three and nine months ended September 30, 2021 and 2020 is as follows (option amounts not in thousands): Weighted Weighted Average Average Remaining Aggregate Number of Exercise Contractual Intrinsic Options Price Term Value Outstanding at January 1, 2021 440,000 $ 45.25 7.6 years $ 3,113 Outstanding at March 31, 2021 440,000 $ 45.25 7.3 years $ 13,464 Outstanding at June 30, 2021 440,000 $ 45.25 7.1 years $ 23,883 Outstanding at September 30, 2021 440,000 $ 45.25 6.8 years $ 29,238 Exercisable at September 30, 2021 275,000 $ 43.40 6.3 years $ 18,782 Outstanding at January 1, 2020 340,000 $ 43.21 7.9 years $ 1,657 Granted 110,000 $ 48.00 Exercised ( 10,000 ) $ 6.30 Outstanding at March 31, 2020 440,000 $ 45.25 8.3 years $ — Outstanding at June 30, 2020 440,000 $ 45.25 8.1 years $ 1,184 Outstanding at September 30, 2020 440,000 $ 45.25 7.8 years $ 2,321 Exercisable at September 30, 2020 165,000 $ 42.17 7.0 years $ 1,334 The following table summarizes information about options exercised for the three and nine months ended September 30, 2021 and 2020 (option amounts not in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Options exercised — — — 10,000 Total intrinsic value of exercised options $ — $ — $ — $ 288 Tax benefits realized $ — $ — $ — $ 71 For the three months ended September 30, 2021 and 2020 , the Company recognized $ 221 and $ 300 , respectively, of compensation expense which was included in general and administrative personnel expenses. For the nine months ended September 30, 2021 and 2020, the Company recognized $ 663 and $ 880 , respectively, of compensation expense. Deferred tax benefits related to stock options were $ 3 and $ 19 for the three months ended September 30, 2021 and 2020 , respectively, and $ 4 and $ 57 for the nine months ended September 30, 2021 and 2020, respectively. At September 30, 2021 and December 31, 2020 , there was $ 1,226 and $ 1,889 , respectively, of unrecognized compensation expense related to nonvested stock options. The Company expects to recognize the remaining compensation expense over a weighted-average period of 1.8 years. The following table provides assumptions used in the Black-Scholes option-pricing model to estimate the fair value of the stock options granted during the nine months ended September 30, 2020: 2020 Expected dividend yield 3.48 % Expected volatility 38.68 % Risk-free interest rate 1.63 % Expected life (in years) 5 Restricted Stock Awards From time to time, the Company has granted and may grant restricted stock awards to its executive officers, other employees and nonemployee directors in connection with their service to the Company. The terms of the Company’s outstanding restricted stock grants may include service, performance and market-based conditions. The determination of fair value with respect to the awards containing only service-based conditions is based on the market value of the Company’s common stock on the grant date. For awards with market-based conditions, the fair value is determined using a Monte Carlo simulation method, which calculates many potential outcomes for an award and then establishes fair value based on the most likely outcome. Information with respect to the activity of unvested restricted stock awards during the three and nine months ended September 30, 2021 and 2020 is as follows: Number of Weighted Restricted Average Stock Grant Date Awards Fair Value Nonvested at January 1, 2021 423,787 $ 43.79 Granted 548,086 $ 36.95 Vested ( 41,250 ) $ 42.18 Cancelled ( 141,600 ) $ 43.76 Forfeited ( 2,050 ) $ 45.67 Nonvested at March 31, 2021 786,973 $ 39.11 Granted 3,000 $ 76.00 Vested ( 68,541 ) $ 43.80 Cancelled ( 1,160 ) $ 45.96 Forfeited ( 9,060 ) $ 46.44 Nonvested at June 30, 2021 711,212 $ 38.71 Granted 2,340 $ 96.60 Forfeited ( 38,855 ) $ 38.05 Nonvested at September 30, 2021 674,697 $ 38.95 Nonvested at January 1, 2020 396,760 $ 41.71 Granted 45,000 $ 44.97 Vested ( 31,250 ) $ 40.97 Forfeited ( 7,138 ) $ 42.60 Nonvested at March 31, 2020 403,372 $ 42.12 Granted 145,000 $ 45.59 Vested ( 104,926 ) $ 41.16 Forfeited ( 5,220 ) $ 43.75 Nonvested at June 30, 2020 438,226 $ 43.48 Granted 2,680 $ 54.36 Vested ( 625 ) $ 41.02 Forfeited ( 2,369 ) $ 45.60 Nonvested at September 30, 2020 437,912 $ 43.54 The Company recognized compensation expense related to restricted stock, which is included in general and administrative personnel expenses, of $ 2,039 and $ 1,862 for the three months ended September 30, 2021 and 2020 , respectively, and $ 6,280 and $ 5,142 for the nine months ended September 30, 2021 and 2020, respectively. At September 30, 2021 and December 31, 2020 , there was approximately $ 21,628 and $ 13,666 , respectively, of total unrecognized compensation expense related to nonvested restricted stock arrangements. The Company expects to recognize the remaining compensation expense over a weighted-average period of 2.9 years. The following table summarizes information about deferred tax benefits recognized and tax benefits realized related to restricted stock awards and paid dividends, and the fair value of vested restricted stock for the three and nine months ended September 30, 2021 and 2020. Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Deferred tax benefits recognized $ 420 $ 353 $ 879 $ 956 Tax benefits realized for restricted stock $ 70 $ 47 $ 1,482 $ 1,286 Fair value of vested restricted stock $ — $ 26 $ 4,742 $ 5,625 In February 2021, the Company cancelled 141,600 shares of restricted stock for employees who transitioned to TypTap Group (See Note 1 -- “Nature of Operations”). In exchange, these employees received replacement restricted stock issued under TTIG’s equity incentive plan. Subsidiary Equity Plan On February 26, 2021, TTIG’s Board of Directors approved the 2021 Equity Incentive Plan (the “2021 Plan”) which is an incentive plan denominated in TTIG’s common shares. The 2021 Plan provides for broad-based equity awards to employees and nonemployee directors of TypTap Group. The maximum number of shares that may be issued under the 2021 Plan is 7,000,000 shares. In February 2021, TTIG issued a total of 5,749,300 shares of restricted stock to the employees who transitioned to TypTap Group. For the three months ended September 30, 2021, TypTap Group recognized compensation expense related to restricted stock of $ 472 , and for the nine months ended September 30, 2021, TypTap Group recognized compensation expense related to restricted stock of $ 2,286 . On September 27, 2021, TTIG’s Board of Directors terminated the 2021 Plan and replaced it with the 2021 Omnibus Incentive Plan (the “2021 Omnibus Plan”). The initial maximum number of shares that may be issued under the 2021 Omnibus Plan is 7,700,000 shares. At September 30, 2021, there was approximately $ 4,846 of total unrecognized compensation expense related to nonvested restricted stock. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 21 -- Commitments and Contingencies Obligations under Multi-Year Reinsurance Contracts As of September 30, 2021, the Company has contractual obligations related to two multi-year reinsurance contracts. These contracts may be cancelled only with the other party’s consent or when their respective experience accounts are positive at the end of each contract year. The table below presents the future minimum aggregate premium amounts payable to the reinsurer. Due in 12 months following September 30, 2021 $ 9,095 2022* 9,095 2023* 4,093 Total $ 22,283 *Premiums payable after May 31, 2022 are estimated. Capital Commitments As described in Note 5 -- “Investments” under Limited Partnership Investments , the Company is contractually committed to capital contributions for limited partnership interests. At September 30, 2021 , there was an aggregate unfunded balance of $ 13,980 . |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 22 -- Related Party Transactions On February 12, 2021, the Company committed to provide a revolving line of credit with borrowing capacity of up to $ 60,000 to TTIG and the credit line would be available until the earlier of June 30, 2022 and the securing of alternative financing. This commitment has ended on February 26, 2021 after the investment transaction described in Note 18 -- “Redeemable Noncontrolling Interest.” |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 23 -- Subsequent Events On October 1, 2021, TTIG granted options to purchase an aggregate of 6,450,000 shares of its common stock at an exercise price of $ 23 per share to its chief executive officer, Paresh Patel, and certain other executives. The options will have a 10-year term and were granted pursuant to TTIG's 2021 Omnibus Plan. The options will vest over a four-year period, so long as the optionees remain employed by TTIG. TTIG is currently in the process of determining the grant date fair value of the options . On October 5, 2021, a significant portion of market-based restricted stock awards that were granted in February 2021 met the condition for vesting. As a result, the expensing of an unrecognized balance of $ 7,130 will be accelerated and the expense related to these awards will be recognized over the next twelve months . On October 15, 2021 , the Company’s Board of Directors declared a quarterly dividend of $ 0.40 per common share. The dividends are payable on December 17, 2021 to stockholders of record on November 19, 2021. During the months of October and November 2021, an additional $ 27,846 and $ 4,340 , respectively, of aggregate principal amount of the 4.25 % Convertible Notes was converted for 458,533 and 71,464 shares, respectively, of HCI's common stock and aggregate cash consideration of $ 481 . The Company recognized debt conversion expense of $ 481 for certain of the conversions. In October 2021, the Florida Office of Insurance Regulation approved a 2022 assessment for the Florida Insurance Guaranty Association (“FIGA”) which is necessary to secure funds for the payment of covered claims of insolvent insurance companies. The 2022 FIGA assessment will be levied at 0.70 % on collected premiums of all covered lines of business except auto insurance. The surcharge, which is collectible from a policyholder, will be assessed on new and renewal policies with effective dates beginning January 1, 2022 through December 31, 2022. The Company’s insurance subsidiaries, as member insurers, will be required to collect and remit the pass-through assessments to FIGA on a quarterly basis. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited consolidated financial statements for HCI Group, Inc. and its majority-owned and controlled subsidiaries (collectively, the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information, and the Securities and Exchange Commission (“SEC”) rules for interim financial reporting. Certain information and footnote disclosures normally included in consolidated financial statements prepared in accordance with U.S. GAAP have been omitted pursuant to such rules and regulations. However, in the opinion of management, the accompanying consolidated financial statements reflect all normal recurring adjustments necessary to present fairly the Company’s financial position as of September 30, 2021 and the results of operations and cash flows for the interim periods presented. The results of operations for the interim periods presented are not necessarily indicative of the results of operations to be expected for any subsequent interim period or for the fiscal year ending December 31, 2021. The accompanying unaudited consolidated financial statements and notes thereto should be read in conjunction with the audited consolidated financial statements for the year ended December 31, 2020 included in the Company’s Form 10-K, which was filed with the SEC on March 12, 2021. In preparing the interim unaudited consolidated financial statements, management was required to make certain judgments, assumptions, and estimates that affect the reported amounts of assets, liabilities, revenues, expenses and related disclosures at the financial reporting date and throughout the periods being reported upon. Certain of the estimates result from judgments that can be subjective and complex and consequently actual results may differ from these estimates. Material estimates that are particularly susceptible to significant change in the near term are related to the Company’s losses and loss adjustment expenses, which include amounts estimated for claims incurred but not yet reported. The Company uses various assumptions and actuarial data it believes to be reasonable under the circumstances to make these estimates. In addition, accounting policies specific to reinsurance with retrospective provisions, reinsurance recoverable, deferred income taxes, limited partnership investments, warrants, redeemable noncontrolling interest, intangible assets acquired from United, and stock-based compensation expense involve significant judgments and estimates material to the Company’s consolidated financial statements. All significant intercompany balances and transactions have been eliminated. |
Adoption of New Accounting Standards | Adoption of New Accounting Standards Accounting Standards Update No. 2020-06. In August 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2020-06 (“ASU 2020-06”) Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity’s Own Equity (Subtopic 815-40). ASU 2020-06 removes certain bifurcation models for convertible debt instruments and convertible preferred stock. Therefore, the embedded conversion features no longer are separated from the host contract for convertible instruments with conversion features that are not required to be accounted for as derivatives under Topic 815, Derivatives and Hedging, or that do not result in substantial premiums accounted for as paid-in-capital. The amendments also remove three settlement conditions that are required for equity contracts to qualify for the derivative scope exception and amend the derivative scope exception guidance for contracts in an entity’s own equity. In addition, the amendments expand disclosure requirements for convertible instruments and simplify areas of the guidance for diluted earnings-per-share calculations that are impacted by the amendments. The Company elected to early adopt this update on January 1, 2021 using the modified retrospective method. The adoption of this update increased long-term debt by $ 3,999 and simultaneously decreased beginning retained income and deferred income tax liabilities by $ 3,018 and $ 981 , respectively. The if-converted method will be the only permissible method for computing the dilutive effect of a convertible debt instrument. Interest expense no longer includes amortization of debt discount. Funds Held in Trust for Assumed Business The Company accounts for trust account deposits with regards to the quota share reinsurance agreements between the Company's insurance subsidiaries and United as funds held in trust for assumed business. This balance consists of funds deposited to establish the trust accounts and assumed premiums written net of provisional commission, any catastrophe cost allowance applicable, and paid losses and loss adjustment expenses. |
Funds Held in Trust for Assumed Business | Funds Held in Trust for Assumed Business The Company accounts for trust account deposits with regards to the quota share reinsurance agreements between the Company's insurance subsidiaries and United as funds held in trust for assumed business. This balance consists of funds deposited to establish the trust accounts and assumed premiums written net of provisional commission, any catastrophe cost allowance applicable, and paid losses and loss adjustment expenses. |
Redeemable Noncontrolling Interest | Redeemable Noncontrolling Interest Redeemable noncontrolling interest represents an economic interest in TTIG and is presented in the temporary equity (mezzanine) section of the consolidated balance sheet. The interest contains rights in dividends, voting, conversion, participation, liquidation preference and redemption. The redemption feature is not solely within the control of TTIG (See Note 18 -- “Redeemable Noncontrolling Interest”). The redeemable noncontrolling interest is initially recorded at fair value and is decreased by related issuance costs. The fair value is estimated using a residual fair value approach. The effect of increasing dividend rates is accreted to the redeemable noncontrolling interest with a corresponding debit to retained income. The effective interest method is used for accretion over the period of the increasing dividend rates. The carrying value of the interest is also subsequently adjusted for accrued dividends and dividend payments. The Company has an option to pay the dividends in cash or make a payment in kind. The dividends are accrued monthly assuming that they will be settled in cash. When the redemption is probable, the Company elects to recognize changes in the redemption value immediately as it occurs and adjust the carrying value of the interest to the maximum redemption value which is the higher of the redemption price or fair market value at the reporting date. Such changes in the redemption value are treated as dividends when calculating income available to common stockholders. |
Noncontrolling Interests | Noncontrolling Interests The Company has noncontrolling interests attributable to TTIG. A noncontrolling interest arises when the Company has less than 100 % of the voting rights and economic interests in a subsidiary. The noncontrolling interest is periodically adjusted for the expensing of TTIG’s restricted stock awards granted to its employees, the interest’s share of TTIG’s net income or loss to common stockholders and change in other comprehensive income or loss. |
Revenue from Claims Handling Services | Revenue from Claims Handling Services The Company provides a claims handling service to a third-party insurance company. The service includes investigation, evaluation, adjustment and settlement of a claim. These highly interrelated activities are combined to fulfill the Company’s obligation to provide the claims handling service under a contract. As such, they are considered a single performance obligation for revenue recognition purposes. Fees are established on a per-claim basis by type of claim. For each type of claim, the per-claim fee revenue is recognized over an average claim processing period. The Company may incur additional costs for outsourced services in connection with the investigation, coverage analysis, adjustment, negotiation, settlement, defense or general handling of a claim. These costs are reimbursable from the customer. The Company has control over how an outsourced service is performed on its behalf. Thus, these pass-through costs are recognized as revenue in the gross amount to which the Company expects to be entitled and when the outsourced service is completed and paid or accrued by the Company. For a certain type of claim and in addition to the per-claim service fee, the Company is entitled to additional revenue which is determined based on a fixed percent of the paid indemnification of the loss per claim. The revenue is recognized when the indemnification is paid by the Company. Revenue related to claims handling services is included in other revenue in the consolidated statement of income. For the three and nine months ended September 30, 2021, revenues from claims handling services were $ 1,709 and $ 1,916 , respectively. At September 30, 2021, other assets included $ 768 of amounts receivable attributable to this service. |
Stock-Based Compensation | Stock-Based Compensation The Company accounts for stock-based compensation under the fair value recognition provisions of U.S. GAAP which requires the measurement and recognition of compensation for all stock-based awards made to employees and directors based on estimated fair values. In accordance with U.S. GAAP, the fair value of stock-based awards is generally recognized as compensation expense over the requisite service period, which is defined as the period during which a recipient is required to provide service in exchange for an award. Forfeitures of the Company’s stock-based awards are accounted for as they occur. The Company uses a straight-line attribution method for all grants that include only a service condition. Restricted stock grants with market conditions are expensed over the derived service period. Expensing market-based awards may be expedited if the conditions are met sooner than anticipated. The Company’s outstanding stock-based awards include stock options, warrants and restricted stock awards with service and market conditions. Compensation expense related to all awards is included in general and administrative personnel expenses. The Company receives a windfall tax benefit for certain stock option exercises and for restricted stock awards if these awards vest at a higher value than the value used to recognize compensation expense. In the event the restricted stock awards vest at a lower value than the value used to recognize compensation expense, the Company experiences a tax shortfall. The Company recognizes tax windfalls and shortfalls in the consolidated statements of income. |
Reclassification | Reclassification In response to the new reporting segment described in Note 1 -- “Nature of Operations,” the prior period segment information has been reclassified to conform with the current period presentation. TypTap and TypTap Management Company were removed from the segment previously referred to as Insurance Operations to form the new TypTap Group segment. The information technology companies which had previously been presented in the Corporate and Other segment were also added to the TypTap Group segment. |
Cash, Cash Equivalents, and R_2
Cash, Cash Equivalents, and Restricted Cash (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Cash And Cash Equivalents [Abstract] | |
Summary of Cash, Cash Equivalents, and Restricted Cash | The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the Company’s consolidated balance sheets that sum to the total of the same such amounts shown in the statements of cash flows. September 30, December 31, 2021 2020 Cash and cash equivalents $ 569,134 $ 431,341 Restricted cash 2,400 2,400 Total $ 571,534 $ 433,741 |
Investments (Tables)
Investments (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Summary of Amortized Cost, Allowance for Credit Loss, Gross Unrealized Gains and Losses, and Estimated Fair Value of Available-for-Sale Securities | The Company holds investments in fixed-maturity securities that are classified as available-for-sale. At September 30, 2021 and December 31, 2020, the cost or amortized cost, allowance for credit loss, gross unrealized gains and losses, and estimated fair value of the Company’s available-for-sale securities by security type were as follows: Cost or Allowance Gross Gross Estimated Cost Loss Gain Loss Value As of September 30, 2021 U.S. Treasury and U.S. government agencies $ 12,870 $ — $ 103 $ ( 20 ) $ 12,953 Corporate bonds 27,736 — 851 ( 62 ) 28,525 States, municipalities, and political subdivisions 1,757 — 60 — 1,817 Exchange-traded debt 2,185 — 104 — 2,289 Redeemable preferred stock 468 — 2 ( 1 ) 469 Total $ 45,016 $ — $ 1,120 $ ( 83 ) $ 46,053 As of December 31, 2020 U.S. Treasury and U.S. government agencies $ 13,759 $ — $ 210 $ ( 1 ) $ 13,968 Corporate bonds 49,957 ( 579 ) 1,570 ( 17 ) 50,931 States, municipalities, and political subdivisions 3,023 — 60 ( 2 ) 3,081 Exchange-traded debt 3,491 ( 9 ) 230 ( 5 ) 3,707 Redeemable preferred stock 35 — — — 35 Total $ 70,265 $ ( 588 ) $ 2,070 $ ( 25 ) $ 71,722 |
Scheduled Contractual Maturities of Fixed-Maturity Securities | The scheduled contractual maturities of fixed-maturity securities as of September 30, 2021 and December 31, 2020 are as follows: September 30, 2021 December 31, 2020 Cost or Estimated Cost or Estimated Amortized Cost Fair Value Amortized Cost Fair Value Available-for-sale Due in one year or less $ 12,413 $ 12,497 $ 21,122 $ 21,258 Due after one year through five years 23,548 24,209 43,561 44,339 Due after five years through ten years 7,250 7,444 2,731 3,060 Due after ten years 1,805 1,903 2,851 3,065 $ 45,016 $ 46,053 $ 70,265 $ 71,722 |
Summary of Proceeds Received and Gross Realized Gains and Losses from Sales of Available for Sale Securities | Proceeds received, and the gross realized gains and losses from sales of available-for-sale securities, for the three and nine months ended September 30, 2021 and 2020 were as follows: Gross Gross Proceeds Gains Losses Three months ended September 30, 2021 $ 4,158 $ 94 $ ( 6 ) Three months ended September 30, 2020 $ 1,098 $ 13 $ ( 34 ) Nine months ended September 30, 2021 $ 18,838 $ 671 $ ( 6 ) Nine months ended September 30, 2020 $ 79,284 $ 1,743 $ ( 610 ) |
Summary of Securities with Gross Unrealized Loss Positions Aggregated by Investment Category | Securities with gross unrealized loss positions at September 30, 2021 and December 31, 2020, aggregated by investment category and length of time the individual securities have been in a continuous loss position, are as follows: Less Than Twelve Months Twelve Months or Longer Total Gross Estimated Gross Estimated Gross Estimated Unrealized Fair Unrealized Fair Unrealized Fair As of September 30, 2021 Loss Value Loss Value Loss Value U.S. Treasury and U.S. government $ ( 20 ) $ 4,634 $ — $ — $ ( 20 ) $ 4,634 Corporate bonds ( 42 ) 5,129 ( 20 ) 331 ( 62 ) 5,460 Redeemable preferred stock ( 1 ) 424 — — ( 1 ) 424 Total available-for-sale securities $ ( 63 ) $ 10,187 $ ( 20 ) $ 331 $ ( 83 ) $ 10,518 Less Than Twelve Months Twelve Months or Longer Total Gross Estimated Gross Estimated Gross Estimated Unrealized Fair Unrealized Fair Unrealized Fair As of December 31, 2020 Loss Value Loss Value Loss Value U.S. Treasury and U.S. government $ ( 1 ) $ 1,337 $ — $ — $ ( 1 ) $ 1,337 Corporate bonds ( 17 ) 3,085 — — ( 17 ) 3,085 States, municipalities, and political ( 2 ) 1,268 — — ( 2 ) 1,268 Exchange-traded debt ( 5 ) 336 — — ( 5 ) 336 Total available-for-sale securities $ ( 25 ) $ 6,026 $ — $ — $ ( 25 ) $ 6,026 |
Summary of Allowance for Credit Losses of Available-for-Sale Securities | The table below summarizes the activity in the allowance for credit losses of available-for-sale securities for the three and nine months ended September 30, 2021 and 2020: 2021 2020 Balance at January 1 $ 588 $ — Credit loss expense — 439 Reductions for securities sold ( 9 ) — Balance at March 31 $ 579 $ 439 Credit loss expense — 87 Reductions for securities exchanged ( 579 ) — Balance at June 30 $ — $ 526 Credit loss expense — 70 Balance at September 30 $ — $ 596 |
Summary of Amortized Cost, Gross Unrealized Gains and Losses, and Estimated Fair Value of Equity Securities | The Company holds investments in equity securities measured at fair values which are readily determinable. At September 30, 2021 and December 31, 2020, the cost, gross unrealized gains and losses, and estimated fair value of the Company’s equity securities were as follows: Gross Gross Estimated Cost Gain Loss Value September 30, 2021 $ 46,771 $ 4,592 $ ( 1,140 ) $ 50,223 December 31, 2020 $ 47,029 $ 4,649 $ ( 548 ) $ 51,130 |
Summary of Unrealized Gains and Losses for Equity Securities | The table below presents the portion of unrealized gains and losses in the Company’s consolidated statements of income for the periods related to equity securities still held. Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Net (losses) gains recognized $ ( 916 ) $ 1,521 $ 2,620 $ ( 2,363 ) Exclude: Net realized gains (losses) recognized for 953 181 3,269 ( 1,782 ) Net unrealized (losses) gains recognized $ ( 1,869 ) $ 1,340 $ ( 649 ) $ ( 581 ) |
Summary of Proceeds Received, Gross Realized Gains and Losses from Sales of Equity Securities | Proceeds received, and the gross realized gains and losses from sales of equity securities, for the three and nine months ended September 30, 2021 and 2020 were as follows: Gross Gross Proceeds Gains Losses Three months ended September 30, 2021 $ 24,781 $ 1,141 $ ( 188 ) Three months ended September 30, 2020 $ 4,930 $ 244 $ ( 63 ) Nine months ended September 30, 2021 $ 81,292 $ 4,266 $ ( 997 ) Nine months ended September 30, 2020 $ 17,385 $ 1,213 $ ( 2,995 ) |
Schedule of Company's Investments in Limited Partnerships | The following table provides information related to the Company’s investments in limited partnerships: September 30, 2021 December 31, 2020 Carrying Unfunded Carrying Unfunded Investment Strategy Value Balance (%)(a) Value Balance (%)(a) Primarily in senior secured loans and, to a $ 6,100 $ 2,085 15.37 $ 8,131 $ 2,085 15.37 Value creation through active distressed debt 4,198 — 1.76 5,512 — 1.76 High returns and long-term capital appreciation 6,179 1,401 0.18 6,513 1,401 0.18 Value-oriented investments in less liquid and 4,338 — 0.47 4,262 — 0.47 Value-oriented investments in mature real 5,224 5,494 2.24 3,273 6,818 2.24 Risk-adjusted returns on credit and equity — 5,000 — — — — Total $ 26,039 $ 13,980 $ 27,691 $ 10,304 (a) Represents the Company’s percentage investment in the fund at each balance sheet date. (b) Except under certain circumstances, withdrawals from the funds or any assignments are not permitted. Distributions, except income from late admission of a new limited partner, will be received when underlying investments of the funds are liquidated. (c) Expected to have a ten-year term. Although the capital commitment period has expired, there are still follow-on investments and pending commitments that require additional fundings. (d) Expected to have a three-year term from June 30, 2018. The term has been extended for a one-year additional period to June 30, 2022. Although the capital commitment period has ended, the general partner could still request an additional funding of approximately $ 843 under certain circumstances. (e) At the fund manager’s discretion, the term of the fund may be extended for up to two additional one-year periods. (f) Expected to have a ten-year term. The capital commitment period has expired but the general partner may request additional funding for follow-on investment. (g) With the consent of a supermajority of partners, the term of the fund may be extended for up to three additional one-year periods. (h) Expected to have a six-year term from the commencement date, which can be extended for up to two additional one-year periods with the consent of either the advisory committee or a majority of limited partners. (i) The capital commitment period has ended but an additional funding may be requested. (j) Expected to have an eight-year term from November 27, 2019. (k) Expected to have an eight-year term after the final admission date. |
Summary of Unaudited Financial Information and Unaudited Financial Position | The following tables provide FMJV’s summarized unaudited financial results and the unaudited financial positions: Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Operating results: Total revenues $ 540 $ — $ 540 $ — Total expenses ( 14 ) ( 19 ) ( 70 ) ( 51 ) Net income (loss) $ 526 $ ( 19 ) $ 470 $ ( 51 ) The Company’s share of net income (loss)* $ 473 $ ( 18 ) $ 423 $ ( 46 ) * Included in net investment income in the Company’s consolidated statements of income. September 30, December 31, 2021 2020 Balance sheet: Property and equipment, net $ 362 $ 705 Cash 37 70 Other 18 13 Total assets $ 417 $ 788 Other liabilities $ 6 $ 5 Members’ capital 411 783 Total liabilities and members’ capital $ 417 $ 788 Investment in unconsolidated joint venture, at equity** $ 370 $ 705 ** Includes the 90 % share of FMKT Mel JV’s operating results. |
Summary of Real Estate Investment | Real estate investments consist of the following as of September 30, 2021 and December 31, 2020: September 30, December 31, 2021 2020 Land $ 39,069 $ 39,069 Land improvements 11,917 11,917 Buildings 29,405 29,115 Tenant and leasehold improvements 1,488 1,487 Other 1,229 1,465 Total, at cost 83,108 83,053 Less: accumulated depreciation and amortization ( 9,445 ) ( 8,581 ) Real estate investments $ 73,663 $ 74,472 |
Investment (Loss) Income Summarized | Net investment income (loss), by source, is summarized as follows: Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Available-for-sale fixed-maturity securities $ 266 $ 771 $ 1,091 $ 3,529 Equity securities 322 336 1,013 970 Investment expense ( 134 ) ( 125 ) ( 388 ) ( 367 ) Limited partnership investments 1,132 689 3,491 ( 2,058 ) Real estate investments 305 ( 34 ) 3,646 ( 299 ) Net income (loss) from unconsolidated 473 ( 18 ) 423 ( 46 ) Cash and cash equivalents 156 212 473 1,513 Short-term investments — 1 — 2 Net investment income $ 2,520 $ 1,832 $ 9,749 $ 3,244 |
Limited Partnership [Member] | |
Summary of Unaudited Financial Information and Unaudited Financial Position | The following is the summary of aggregated unaudited financial information of limited partnerships included in the investment strategy table above, which in certain cases is presented on a three-month lag due to the unavailability of information at the Company’s respective balance sheet dates. The financial statements of these limited partnerships are audited annually. Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Operating results: Total income $ ( 13,796 ) $ 259,635 $ 359,885 $ ( 1,421,381 ) Total expenses ( 24,828 ) ( 26,637 ) ( 105,548 ) ( 107,157 ) Net (loss) income $ ( 38,624 ) $ 232,998 $ 254,337 $ ( 1,528,538 ) September 30, December 31, 2021 2020 Balance sheet: Total assets $ 5,562,430 $ 5,529,199 Total liabilities $ 505,843 $ 612,048 |
Comprehensive Income (Loss) (Ta
Comprehensive Income (Loss) (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
Schedule of Components of Other Comprehensive Income or Loss and Related Tax Effects Allocated to Each Component | The components of other comprehensive income or loss and the related tax effects allocated to each component were as follows: Three Months Ended Three Months Ended September 30, 2021 September 30, 2020 Before Income Tax Net of Before Income Tax Net of Tax Effect Tax Tax Effect Tax Net unrealized (losses) gains $ ( 258 ) $ ( 63 ) $ ( 195 ) $ 247 $ 61 $ 186 Credit losses on investments — — — 70 17 53 Call and repayment gains charged to — — — ( 15 ) ( 4 ) ( 11 ) Reclassification adjustment for realized ( 88 ) ( 22 ) ( 66 ) 21 5 16 Total other comprehensive (losses) gains $ ( 346 ) $ ( 85 ) $ ( 261 ) $ 323 $ 79 $ 244 Nine Months Ended Nine Months Ended September 30, 2021 September 30, 2020 Before Income Tax Net of Before Income Tax Net of Tax Effect Tax Tax Effect Tax Net unrealized (losses) gains $ ( 341 ) $ ( 83 ) $ ( 258 ) $ 56 $ 14 $ 42 Credit losses on investments — — — 596 146 450 Call and repayment gains charged to ( 2 ) ( 1 ) ( 1 ) ( 231 ) ( 56 ) ( 175 ) Reclassification adjustment for realized ( 665 ) ( 163 ) ( 502 ) ( 1,133 ) ( 278 ) ( 855 ) Total other comprehensive losses $ ( 1,008 ) $ ( 247 ) $ ( 761 ) $ ( 712 ) $ ( 174 ) $ ( 538 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Components of Long-Term Debt and Methods Used in Estimating Fair Values | The following table summarizes components of the Company’s long-term debt and methods used in estimating their fair values: Maturity Date Valuation Methodology 4.25 % Convertible senior notes 2037 Quoted price 3.90 % Promissory note 2032 Discounted cash flow method/Level 3 inputs 3.75 % Callable promissory note 2036 Discounted cash flow method/Level 3 inputs 4.55 % Promissory note 2036 Discounted cash flow method/Level 3 inputs |
Assets Measured at Estimated Fair Value on a Recurring Basis | The following table presents information about the Company’s financial assets measured at estimated fair value on a recurring basis. The table indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value as of September 30, 2021 and December 31, 2020: Fair Value Measurements Using (Level 1) (Level 2) (Level 3) Total As of September 30, 2021 Financial Assets: Cash and cash equivalents $ 569,134 $ — $ — $ 569,134 Restricted cash $ 2,400 $ — $ — $ 2,400 Fixed-maturity securities: U.S. Treasury and U.S. government agencies $ 10,253 $ 2,700 $ — $ 12,953 Corporate bonds 28,525 — — 28,525 State, municipalities, and political subdivisions — 1,817 — 1,817 Exchange-traded debt 2,289 — — 2,289 Redeemable preferred stock 469 — — 469 Total available-for-sale securities $ 41,536 $ 4,517 $ — $ 46,053 Equity securities $ 50,223 $ — $ — $ 50,223 Fair Value Measurements Using (Level 1) (Level 2) (Level 3) Total As of December 31, 2020 Financial Assets: Cash and cash equivalents $ 431,341 $ — $ — $ 431,341 Restricted cash $ 2,400 $ — $ — $ 2,400 Fixed-maturity securities: U.S. Treasury and U.S. government agencies $ 11,236 $ 2,732 $ — $ 13,968 Corporate bonds 50,931 — — 50,931 State, municipalities, and political subdivisions — 3,081 — 3,081 Exchange-traded debt 3,707 — — 3,707 Redeemable preferred stock 35 — — 35 Total available-for-sale securities $ 65,909 $ 5,813 $ — $ 71,722 Equity securities $ 51,130 $ — $ — $ 51,130 |
Schedule of Fair Value Information for Financial Assets and Liabilities Carried on Consolidated Balance Sheets | The following tables present fair value information for assets and liabilities that are carried on the consolidated balance sheets at amounts other than fair value as of September 30, 2021 and December 31, 2020: Carrying Fair Value Measurements Using Estimated Value (Level 1) (Level 2) (Level 3) Fair Value As of September 30, 2021 Financial Liabilities: Long-term debt: 4.25 % Convertible senior notes $ 56,227 $ — $ 103,490 $ — $ 103,490 3.90 % Promissory note 9,371 — — 10,598 10,598 3.75 % Callable promissory note 7,241 — — 7,986 7,986 4.55 % Promissory note 5,208 — — 6,159 6,159 Total long-term debt $ 78,047 $ — $ 103,490 $ 24,743 $ 128,233 Carrying Fair Value Measurements Using Estimated Value (Level 1) (Level 2) (Level 3) Fair Value As of December 31, 2020 Financial Liabilities: Revolving credit facility $ 23,750 $ — $ 23,750 $ — $ 23,750 Long-term debt: 4.25 % Convertible senior notes $ 133,964 $ — $ 147,236 $ — $ 147,236 3.90 % Promissory note 9,617 — — 10,044 10,044 3.75 % Callable promissory note 7,502 — — 7,747 7,747 4.55 % Promissory note 5,385 — — 5,809 5,809 Total long-term debt $ 156,468 $ — $ 147,236 $ 23,600 $ 170,836 |
Intangible Assets, Net (Tables)
Intangible Assets, Net (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Details of Intangible Assets, Net | The Company’s intangible assets, net consist of the following: September 30, December 31, 2021 2020 Anchor tenant relationships (a) $ 1,761 $ 1,761 In-place leases 4,215 4,215 Policy renewal rights - United 7,634 — Non-compete agreement - United (b) 195 — Total, at cost 13,805 5,976 Less: accumulated amortization ( 2,998 ) ( 2,408 ) Intangible assets, net $ 10,807 $ 3,568 |
Schedule of Remaining Weighted-Average Amortization Period for Intangible Assets | The remaining weighted-average amortization periods for the intangible assets at September 30, 2021 are summarized in the table below: Anchor tenant relationships* 12.6 years In-place leases 9.9 years Policy renewal rights - United (c) (a) An anchor tenant is a tenant that attracted more customers than other tenants. (b) The entire amount was fully amortized in June 2021. (c) Will be amortized over four years after the policy replacement date. |
Other Assets (Tables)
Other Assets (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |
Summary of Other Assets | The following table summarizes the Company’s other assets: September 30, December 31, 2021 2020 Benefits receivable related to retrospective reinsurance contracts $ 1,819 $ 10,920 Prepaid expenses 3,493 2,365 Deposits 969 445 Lease acquisition costs, net 521 453 Other 6,372 8,428 Total other assets $ 13,174 $ 22,611 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Summary of Long-term Debt | The following table summarizes the Company’s long-term debt: September 30, December 31, 2021 2020 4.25% Convertible senior notes, due March 1, 2037 $ 56,409 $ 139,200 3.90% Promissory note, due through April 1, 2032 9,519 9,777 3.75% Callable promissory note, due through 7,337 7,607 4.55% Promissory note, due through August 1, 2036 5,287 5,470 Finance lease liabilities, due through October 15, 2024 36 43 Total principal amount 78,588 162,097 Less: unamortized discount and issuance costs* ( 505 ) ( 5,586 ) Total long-term debt $ 78,083 $ 156,511 |
Summary of Future Maturities of Long-Term Debt | The following table summarizes future maturities of long-term debt as of September 30, 2021 , which takes into consideration the assumption that the 4.25 % Convertible Senior Notes are repurchased at the earliest call date. Due in 12 months following September 30, 2021 $ 57,409 2022 1,036 2023 1,065 2024 1,106 2025 1,151 Thereafter 16,821 Total $ 78,588 |
Schedule of Interest Expense Related to Long-Term Debt | Information with respect to interest expense related to long-term debt is as follows: Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Interest Expense: Contractual interest $ 1,421 $ 1,736 $ 4,832 $ 5,374 Non-cash expense (a) 219 1,053 758 3,174 Capitalized interest (b) — ( 41 ) — ( 125 ) $ 1,640 $ 2,748 $ 5,590 $ 8,423 |
Reinsurance (Tables)
Reinsurance (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Insurance [Abstract] | |
Impact of the Reinsurance Contracts on Premiums Written and Earned | The impact of the reinsurance contracts on premiums written and earned is as follows: Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Premiums Written: Direct $ 143,426 $ 116,464 $ 396,781 $ 364,942 Assumed 30,840 ( 13 ) 88,311 ( 92 ) Gross written 174,266 116,451 485,092 364,850 Ceded ( 55,577 ) ( 44,231 ) ( 145,112 ) ( 109,304 ) Net premiums written $ 118,689 $ 72,220 $ 339,980 $ 255,546 Premiums Earned: Direct $ 120,763 $ 106,337 $ 346,788 $ 303,956 Assumed 29,046 357 73,403 2,906 Gross earned 149,809 106,694 420,191 306,862 Ceded ( 55,577 ) ( 44,231 ) ( 145,112 ) ( 109,304 ) Net premiums earned $ 94,232 $ 62,463 $ 275,079 $ 197,558 |
Losses and Loss Adjustment Ex_2
Losses and Loss Adjustment Expenses (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Insurance [Abstract] | |
Liability for Unpaid Losses and Loss Adjustment Expenses | Activity in the liability for losses and LAE is summarized as follows: Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Net balance, beginning of period* $ 154,901 $ 123,129 $ 141,065 $ 98,174 Incurred, net of reinsurance, related to: Current period 53,834 50,543 147,064 116,839 Prior period 8,830 1,200 17,268 2,825 Total incurred, net of reinsurance 62,664 51,743 164,332 119,664 Paid, net of reinsurance, related to: Current period ( 31,663 ) ( 21,175 ) ( 59,265 ) ( 36,988 ) Prior period ( 22,237 ) ( 9,386 ) ( 82,467 ) ( 36,539 ) Total paid, net of reinsurance ( 53,900 ) ( 30,561 ) ( 141,732 ) ( 73,527 ) Net balance, end of period 163,665 144,311 163,665 144,311 Add: reinsurance recoverable before allowance for 39,512 75,034 39,512 75,034 Gross balance, end of period $ 203,177 $ 219,345 $ 203,177 $ 219,345 * Net balance represents beginning-of-period liability for unpaid losses and LAE less beginning-of-period reinsurance recoverable for unpaid losses and LAE. |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
Summary of Segment Information Reconciled to Consolidated Statements of Income | The following tables present segment information reconciled to the Company’s consolidated statements of income. Intersegment transactions are not eliminated from segment results. However, intracompany transactions are eliminated in segment results below. HCPCI Insurance TypTap Real Corporate/ Reclassification/ For Three Months Ended September 30, 2021 Operations Group Estate (a) Other (b) Elimination Consolidated Revenue: Gross premiums earned $ 98,256 $ 51,553 $ — $ — $ — $ 149,809 Premiums ceded ( 36,955 ) ( 20,135 ) — — 1,513 ( 55,577 ) Net premiums earned 61,301 31,418 — — 1,513 94,232 Net income from investment portfolio 831 102 — 172 778 1,883 Policy fee income 693 307 — — — 1,000 Other 2,087 480 2,336 489 ( 3,290 ) 2,102 Total revenue 64,912 32,307 2,336 661 ( 999 ) 99,217 Expenses: Losses and loss adjustment expenses 36,928 24,224 — — 1,512 62,664 Amortization of deferred policy acquisition costs 12,402 9,250 — — — 21,652 Other policy acquisition expenses 633 1,110 — — ( 55 ) 1,688 Interest expense — 1 231 1,432 — 1,664 Depreciation and amortization 18 342 576 171 ( 603 ) 504 Debt conversion expense — — — 1,273 — 1,273 Personnel and other operating expenses 5,896 7,685 814 3,734 ( 1,853 ) 16,276 Total expenses 55,877 42,612 1,621 6,610 ( 999 ) 105,721 Income (loss) before income taxes $ 9,035 $ ( 10,305 ) $ 715 $ ( 5,949 ) $ — $ ( 6,504 ) Total revenue from non-affiliates (c) $ 65,629 $ 32,701 $ 1,997 $ 402 Gross premiums written $ 118,280 $ 55,987 (a) Other revenue under real estate primarily consisted of rental income from investment properties. (b) Other revenue under corporate and other primarily consisted of revenue from marina business. (c) Represents amounts before reclassification of certain revenue and expenses to conform with an insurance company’s presentation. HCPCI Insurance TypTap Real Corporate/ Reclassification/ For Three Months Ended September 30, 2020 Operations Group Estate (a) Other (b) Elimination Consolidated Revenue: Gross premiums earned (c) $ 89,283 $ 19,854 $ — $ — $ ( 2,443 ) $ 106,694 Premiums ceded ( 36,503 ) ( 10,171 ) — — 2,443 ( 44,231 ) Net premiums earned 52,780 9,683 — — — 62,463 Net income from investment portfolio 1,866 363 — 1,340 ( 290 ) 3,279 Policy fee income 684 211 — — — 895 Other 759 24 39,353 290 ( 3,036 ) 37,390 Total revenue 56,089 10,281 39,353 1,630 ( 3,326 ) 104,027 Expenses: Losses and loss adjustment expenses 44,338 7,405 — — — 51,743 Amortization of deferred policy acquisition costs 10,433 3,536 — — — 13,969 Other policy acquisition expenses 160 531 — — 56 747 Interest expense — — 463 2,631 ( 238 ) 2,856 Depreciation and amortization 21 279 567 179 ( 585 ) 461 Loss on repurchases of convertible senior notes — — — — — — Loss on extinguishment of debt — — 98 — — 98 Personnel and other operating expenses 5,896 4,527 1,325 3,428 ( 2,559 ) 12,617 Total expenses 60,848 16,278 2,453 6,238 ( 3,326 ) 82,491 (Loss) income before income taxes $ ( 4,759 ) $ ( 5,997 ) $ 36,900 $ ( 4,608 ) $ — $ 21,536 Total revenue from non-affiliates (d) $ 55,227 $ 10,778 $ 38,859 $ 1,208 Gross premiums written $ 89,102 $ 27,349 (a) Other revenue under real estate primarily consisted of rental income from investment properties. (b) Other revenue under corporate and other primarily consisted of revenue from restaurant and marina businesses. (c) Gross premiums earned consist of $ 86,840 from HCPCI and $ 2,443 from a reinsurance company. (d) Represents amounts before reclassification of certain revenue and expenses to conform with an insurance company’s presentation. HCPCI Insurance TypTap Real Corporate/ Reclassification/ For Nine Months Ended September 30, 2021 Operations Group Estate (a) Other (b) Elimination Consolidated Revenue: Gross premiums earned $ 300,827 $ 119,364 $ — $ — $ — $ 420,191 Premiums ceded ( 104,236 ) ( 42,229 ) — — 1,353 ( 145,112 ) Net premiums earned 196,591 77,135 — — 1,353 275,079 Net income from investment portfolio 5,261 933 — 4,059 3,799 14,052 Policy fee income 2,106 856 — — — 2,962 Other 3,420 1,130 9,849 1,316 ( 12,213 ) 3,502 Total revenue 207,378 80,054 9,849 5,375 ( 7,061 ) 295,595 Expenses: Losses and loss adjustment expenses 110,008 52,976 — — 1,348 164,332 Amortization of deferred policy acquisition costs 43,906 20,541 — — — 64,447 Other policy acquisition expenses 2,170 3,071 — — ( 114 ) 5,127 Interest expense — 91 972 4,950 ( 270 ) 5,743 Depreciation and amortization 56 942 1,737 711 ( 1,841 ) 1,605 Debt conversion expense — — — 1,273 — 1,273 Personnel and other operating expenses 17,317 21,007 3,332 8,901 ( 6,184 ) 44,373 Total expenses 173,457 98,628 6,041 15,835 ( 7,061 ) 286,900 Income (loss) before income taxes $ 33,921 $ ( 18,574 ) $ 3,808 $ ( 10,460 ) $ — $ 8,695 Total revenue from non-affiliates (c) $ 206,743 $ 80,893 $ 8,833 $ 4,641 Gross premiums written $ 323,490 $ 161,602 (a) Other revenue under real estate primarily consisted of rental income from investment properties. (b) Other revenue under corporate and other primarily consisted of revenue from marina business. (c) Represents amounts before reclassification of certain revenue and expenses to conform with an insurance company’s presentation. HCPCI Insurance TypTap Real Corporate/ Reclassification/ For Nine Months Ended September 30, 2020 Operations Group Estate (a) Other (b) Elimination Consolidated Revenue: Gross premiums earned (c) $ 255,273 $ 54,829 $ — $ — $ ( 3,240 ) $ 306,862 Premiums ceded ( 93,466 ) ( 19,078 ) — — 3,240 ( 109,304 ) Net premiums earned 161,807 35,751 — — — 197,558 Net income (loss) from investment portfolio 3,787 383 3 ( 1,714 ) ( 1,024 ) 1,435 Policy fee income 1,987 584 — — — 2,571 Other 1,431 87 44,331 1,695 ( 8,984 ) 38,560 Total revenue 169,012 36,805 44,334 ( 19 ) ( 10,008 ) 240,124 Expenses: Losses and loss adjustment expenses 97,621 22,043 — — — 119,664 Amortization of deferred policy acquisition costs 27,103 9,222 — — — 36,325 Other policy acquisition expenses 1,789 1,419 — — — 3,208 Interest expense — 1 1,434 8,090 ( 679 ) 8,846 Depreciation and amortization 63 820 1,862 466 ( 1,793 ) 1,418 Loss on repurchases of convertible senior notes — — — 150 — 150 Loss on extinguishment of debt — — 98 — — 98 Personnel and other operating expenses 16,161 13,244 3,982 10,548 ( 7,536 ) 36,399 Total expenses 142,737 46,749 7,376 19,254 ( 10,008 ) 206,108 Income (loss) before income taxes $ 26,275 $ ( 9,944 ) $ 36,958 $ ( 19,273 ) $ — $ 34,016 Total revenue from non-affiliates (d) $ 167,891 $ 37,421 $ 42,907 $ ( 996 ) Gross premiums written $ 302,142 $ 62,708 (a) Other revenue under real estate primarily consisted of rental income from investment properties. (b) Other revenue under corporate and other primarily consisted of revenue from restaurant and marina businesses. (c) Gross premiums earned consist of $ 252,033 from HCPCI and $ 3,240 from a reinsurance company. (d) Represents amounts before reclassification of certain revenue and expenses to conform with an insurance company’s presentation. |
Summary of Segment Assets Reconciled to Consolidated Balance Sheet | The following table presents segment assets reconciled to the Company’s total assets in the consolidated balance sheets: September 30, December 31, 2021 2020 Segments: HCPCI Insurance Operations $ 616,948 $ 648,600 TypTap Group 294,931 157,581 Real Estate Operations 129,198 128,383 Corporate and Other 61,629 29,022 Consolidation and Elimination ( 26,592 ) ( 22,273 ) Total assets $ 1,076,114 $ 941,313 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Disclosure Of Leases [Abstract] | |
Disclosure of right-of-use assets and liabilities for operating and finance leases | The table below summarizes the Company’s right-of-use (“ROU”) assets and corresponding liabilities for operating and finance leases: September 30, December 31, 2021 2020 Operating leases: ROU Assets $ 2,576 $ 4,002 Liabilities $ 2,578 $ 4,014 Finance leases: ROU Assets $ 86 $ 79 Liabilities $ 36 $ 43 |
Disclosure of operating and finance leases of lessee | The following table summarizes the Company’s operating and finance leases in which the Company is a lessee: Renewal Other Terms and Class of Assets Initial Term Option Conditions Operating lease: Office equipment 1 to 63 months Yes (a), (b) Office space 3 to 10 years Yes (b), (c) Finance lease: Office equipment 3 to 5 years Not applicable (d) (a) At the end of the lease term, the Company can purchase the equipment at fair market value. (b) There are no variable lease payments. (c) Rent escalation provisions exist. (d) There is a bargain purchase option. |
Disclosure of lease liabilities maturities | As of September 30, 2021, maturities of lease liabilities were as follows: Leases Operating Finance Due in 12 months following September 30, 2021 $ 1,464 $ 20 2022 1,188 15 2023 — 2 Total lease payments 2,652 37 Less: interest and foreign taxes 74 1 Total lease obligations $ 2,578 $ 36 |
Disclosure of quantitative information of operating and finance leases | The following table provides quantitative information with regards to the Company’s operating and finance leases. Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Lease costs: Finance lease costs: Amortization – ROU assets* $ 4 $ 4 $ 13 $ 13 Interest expense — 1 1 2 Operating lease costs* 386 404 1,231 560 Short-term lease costs* 100 44 250 135 Total lease costs $ 490 $ 453 $ 1,495 $ 710 Cash paid for amounts included in the Operating cash flows – finance leases $ 1 $ 1 Operating cash flows – operating leases $ 1,237 $ 566 Financing cash flows – finance leases $ 14 $ 13 September 30, 2021 Weighted-average remaining lease term: Finance leases (in years) 3.0 Operating leases (in years) 2.6 Weighted-average discount rate: Finance leases (%) 3.5 Operating leases (%) 2.8 * Included in other operating expenses of the consolidated statements of income. |
Disclosure of operating leases of lessor entity | The following table summarizes the Company’s operating leases in which the Company is a lessor: Renewal Other Terms and Class of Assets Initial Term Option Conditions Operating lease: Office space 1 to 3 years Yes (e) Retail space 3 to 20 years Yes (e) Boat docks/wet slips 1 to 12 months Yes (e) (e) There are no purchase options. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Summary of Numerator and Denominator of Basic and Diluted Earnings Per Common Share | A summary of the numerator and denominator of the basic and diluted earnings per common share is presented below. Three Months Ended Three Months Ended September 30, 2021 September 30, 2020 Loss Shares (a) Per Share Income Shares (a) Per Share (Numerator) (Denominator) Amount (Numerator) (Denominator) Amount Net (loss) income $ ( 4,868 ) $ 15,390 Less: Net income attributable to ( 2,202 ) — Less: TypTap Group's net loss attributable 774 — Net (loss) income attributable to HCI ( 6,296 ) 15,390 Less: Loss (income) attributable to 537 ( 865 ) Basic (Loss) Earnings Per Share: (Loss) income allocated to common ( 5,759 ) 8,023 $ ( 0.72 ) 14,525 7,356 $ 1.97 Effect of Dilutive Securities: Stock options* — — — 37 Convertible senior notes* (b) — — 1,903 2,284 Diluted (Loss) Earnings Per Share: (Loss) income available to common $ ( 5,759 ) 8,023 $ ( 0.72 ) $ 16,428 9,677 $ 1.70 (a) Shares in thousands. (b) See Adoption of New Accounting Standards under Note 2 -- “Summary of Significant Accounting Policies” for additional information. * For the three months ended September 30, 2021, stock options and convertible senior notes were excluded due to anti-dilutive effect. Nine Months Ended Nine Months Ended September 30, 2021 September 30, 2020 Income Shares (a) Per Share Income Shares (a) Per Share (Numerator) (Denominator) Amount (Numerator) (Denominator) Amount Net income $ 5,807 $ 24,873 Less: Net income attributable to redeemable ( 5,175 ) — Less: TypTap Group's net loss attributable to 1,191 — Net income attributable to HCI 1,823 24,873 Less: Income attributable to participating ( 37 ) ( 1,309 ) Basic Earnings Per Share: Income allocated to common stockholders 1,786 7,676 $ 0.23 23,564 7,350 $ 3.21 Effect of Dilutive Securities: Stock options — 182 — 17 Convertible senior notes* (b) — — 5,787 2,330 Warrants — 234 — — Diluted Earnings Per Share: Income available to common stockholders $ 1,786 8,092 $ 0.22 $ 29,351 9,697 $ 3.03 (a) Shares in thousands. (b) See Adoption of New Accounting Standards under Note 2 -- “Summary of Significant Accounting Policies” for additional information. * For the nine months ended September 30, 2021, convertible senior notes were excluded due to anti-dilutive effect. |
Redeemable Noncontrolling Int_2
Redeemable Noncontrolling Interest (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Noncontrolling Interest [Abstract] | |
Summary of Activity of Redeemable Noncontrolling Interest | The following table summarizes the activity of redeemable noncontrolling interest during the nine months ended September 30, 2021: Balance at January 1, 2021 $ — Initial proceeds from Centerbridge 100,000 Increase (decrease): Proceeds allocated to warrants* ( 9,217 ) Issuance costs ( 6,262 ) Issuance costs allocated to warrants* 577 Accrued cash dividends 458 Accretion - increasing dividend rates 336 Balance at March 31, 2021 $ 85,892 Increase (decrease): Accrued cash dividends 1,250 Accretion - increasing dividend rates 929 Balance at June 30, 2021 $ 88,071 Increase (decrease): Dividends paid ( 2,542 ) Accrued cash dividends 1,250 Accretion - increasing dividend rates 952 Balance at September 30, 2021 $ 87,731 *Net decrease related to warrants of $ 8,640 . |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Company's Stock Option Plan Activity | A summary of the stock option activity for the three and nine months ended September 30, 2021 and 2020 is as follows (option amounts not in thousands): Weighted Weighted Average Average Remaining Aggregate Number of Exercise Contractual Intrinsic Options Price Term Value Outstanding at January 1, 2021 440,000 $ 45.25 7.6 years $ 3,113 Outstanding at March 31, 2021 440,000 $ 45.25 7.3 years $ 13,464 Outstanding at June 30, 2021 440,000 $ 45.25 7.1 years $ 23,883 Outstanding at September 30, 2021 440,000 $ 45.25 6.8 years $ 29,238 Exercisable at September 30, 2021 275,000 $ 43.40 6.3 years $ 18,782 Outstanding at January 1, 2020 340,000 $ 43.21 7.9 years $ 1,657 Granted 110,000 $ 48.00 Exercised ( 10,000 ) $ 6.30 Outstanding at March 31, 2020 440,000 $ 45.25 8.3 years $ — Outstanding at June 30, 2020 440,000 $ 45.25 8.1 years $ 1,184 Outstanding at September 30, 2020 440,000 $ 45.25 7.8 years $ 2,321 Exercisable at September 30, 2020 165,000 $ 42.17 7.0 years $ 1,334 |
Information about Options Exercised | The following table summarizes information about options exercised for the three and nine months ended September 30, 2021 and 2020 (option amounts not in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Options exercised — — — 10,000 Total intrinsic value of exercised options $ — $ — $ — $ 288 Tax benefits realized $ — $ — $ — $ 71 |
Assumptions Used to Estimate the Fair Value of Stock Options Granted | The following table provides assumptions used in the Black-Scholes option-pricing model to estimate the fair value of the stock options granted during the nine months ended September 30, 2020: 2020 Expected dividend yield 3.48 % Expected volatility 38.68 % Risk-free interest rate 1.63 % Expected life (in years) 5 |
Information with Respect to Unvested Restricted Stock Awards Stock Option and Incentive Plan | Information with respect to the activity of unvested restricted stock awards during the three and nine months ended September 30, 2021 and 2020 is as follows: Number of Weighted Restricted Average Stock Grant Date Awards Fair Value Nonvested at January 1, 2021 423,787 $ 43.79 Granted 548,086 $ 36.95 Vested ( 41,250 ) $ 42.18 Cancelled ( 141,600 ) $ 43.76 Forfeited ( 2,050 ) $ 45.67 Nonvested at March 31, 2021 786,973 $ 39.11 Granted 3,000 $ 76.00 Vested ( 68,541 ) $ 43.80 Cancelled ( 1,160 ) $ 45.96 Forfeited ( 9,060 ) $ 46.44 Nonvested at June 30, 2021 711,212 $ 38.71 Granted 2,340 $ 96.60 Forfeited ( 38,855 ) $ 38.05 Nonvested at September 30, 2021 674,697 $ 38.95 Nonvested at January 1, 2020 396,760 $ 41.71 Granted 45,000 $ 44.97 Vested ( 31,250 ) $ 40.97 Forfeited ( 7,138 ) $ 42.60 Nonvested at March 31, 2020 403,372 $ 42.12 Granted 145,000 $ 45.59 Vested ( 104,926 ) $ 41.16 Forfeited ( 5,220 ) $ 43.75 Nonvested at June 30, 2020 438,226 $ 43.48 Granted 2,680 $ 54.36 Vested ( 625 ) $ 41.02 Forfeited ( 2,369 ) $ 45.60 Nonvested at September 30, 2020 437,912 $ 43.54 |
Information about Deferred Tax Benefits Recognized Related to Restricted Stock Awards, Paid Dividends and the Fair Value of Vested Restricted Stock | The following table summarizes information about deferred tax benefits recognized and tax benefits realized related to restricted stock awards and paid dividends, and the fair value of vested restricted stock for the three and nine months ended September 30, 2021 and 2020. Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Deferred tax benefits recognized $ 420 $ 353 $ 879 $ 956 Tax benefits realized for restricted stock $ 70 $ 47 $ 1,482 $ 1,286 Fair value of vested restricted stock $ — $ 26 $ 4,742 $ 5,625 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Aggregate Premium Amounts Payable to Reinsurer | The table below presents the future minimum aggregate premium amounts payable to the reinsurer. Due in 12 months following September 30, 2021 $ 9,095 2022* 9,095 2023* 4,093 Total $ 22,283 *Premiums payable after May 31, 2022 are estimated. |
Nature of Operations - Addition
Nature of Operations - Additional Information (Detail) - USD ($) $ in Thousands | Jan. 18, 2021 | Dec. 31, 2020 | Jan. 18, 2018 | Sep. 30, 2021 |
Nature Of Operations [Line Items] | ||||
Quota share reinsurance percentage | 100.00% | |||
Deferred policy acquisition costs, percentage of provisional ceding commission of premium | 24.00% | |||
Policy replacement date | Jun. 1, 2021 | |||
Issuance of common stock shares | 100,000 | 100,000 | ||
Commission percentage on aggregate replacement premium | 6.00% | 6.00% | ||
Percentage of each insurance subsidiary assumes | 50.00% | |||
Minimum [Member] | ||||
Nature Of Operations [Line Items] | ||||
Aggregate replacement premium | $ 80,000 | $ 80,000 | ||
Maximum [Member] | ||||
Nature Of Operations [Line Items] | ||||
Total commission | $ 3,100 | |||
United [Member] | ||||
Nature Of Operations [Line Items] | ||||
Quota share reinsurance percentage | 69.50% | |||
Allowance paid for policy acquisition | $ 4,400 | |||
Deferred policy acquisition costs, percentage of provisional ceding commission of premium | 25.00% | |||
Percentage of maximum potential acquisition costs in reinsured business | 31.50% |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) $ in Thousands | Jan. 01, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 |
Summary Of Significant Accounting Policies [Line Items] | ||||||
Other | $ 2,102 | $ 37,390 | $ 3,502 | $ 38,560 | ||
Other assets | 13,174 | 13,174 | $ 22,611 | |||
Claims handling services | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Other | 1,709 | 1,916 | ||||
Other assets | $ 768 | $ 768 | ||||
Maximum [Member] | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Percentage of voting rights and economic interests in subsidiary | 100.00% | |||||
ASU 2020-06 [Member] | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Increase in long-term debt | $ 3,999 | |||||
Decrease in retained income | (3,018) | |||||
Decrease in deferred income tax liabilities | $ (981) |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements - Additional Information (Detail) | Sep. 30, 2021 |
ASU 2021-01 [Member] | |
Change In Accounting Estimate [Line Items] | |
Change in Accounting Principle, Accounting Standards Update, Adopted [true false] | true |
Change in Accounting Principle, Accounting Standards Update, Immaterial Effect [true false] | true |
ASU 2021-04 [Member] | |
Change In Accounting Estimate [Line Items] | |
Change in Accounting Principle, Accounting Standards Update, Adopted [true false] | true |
Change in Accounting Principle, Accounting Standards Update, Immaterial Effect [true false] | true |
Cash, Cash Equivalents, and R_3
Cash, Cash Equivalents, and Restricted Cash - Summary of Cash, Cash Equivalents, and Restricted Cash (Detail) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents [Abstract] | ||
Cash and cash equivalents | $ 569,134 | $ 431,341 |
Restricted cash | 2,400 | 2,400 |
Total | $ 571,534 | $ 433,741 |
Investments - Summary of Amorti
Investments - Summary of Amortized Cost, Allowance for Credit Loss, Gross Unrealized Gains and Losses, and Estimated Fair Value of Available-for-Sale Securities (Detail) - USD ($) $ in Thousands | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Schedule of Available-for-sale Securities [Line Items] | ||||||||
Fixed-maturity securities, Cost or Amortized Cost | $ 45,016 | $ 70,265 | ||||||
Allowance for Credit Loss | 0 | $ 0 | $ (579) | (588) | $ (596) | $ (526) | $ (439) | $ 0 |
Fixed-maturity securities, Gross Unrealized Gain | 1,120 | 2,070 | ||||||
Fixed-maturity securities, Gross Unrealized Loss | (83) | (25) | ||||||
Fixed-maturity securities, Estimated Fair Value | 46,053 | 71,722 | ||||||
Fixed-Maturity Securities [Member] | U.S. Treasury and U.S. Government Agencies [Member] | ||||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||||
Fixed-maturity securities, Cost or Amortized Cost | 12,870 | 13,759 | ||||||
Fixed-maturity securities, Gross Unrealized Gain | 103 | 210 | ||||||
Fixed-maturity securities, Gross Unrealized Loss | (20) | (1) | ||||||
Fixed-maturity securities, Estimated Fair Value | 12,953 | 13,968 | ||||||
Fixed-Maturity Securities [Member] | Corporate Bonds [Member] | ||||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||||
Fixed-maturity securities, Cost or Amortized Cost | 27,736 | 49,957 | ||||||
Allowance for Credit Loss | (579) | |||||||
Fixed-maturity securities, Gross Unrealized Gain | 851 | 1,570 | ||||||
Fixed-maturity securities, Gross Unrealized Loss | (62) | (17) | ||||||
Fixed-maturity securities, Estimated Fair Value | 28,525 | 50,931 | ||||||
Fixed-Maturity Securities [Member] | State, Municipalities, and Political Subdivisions [Member] | ||||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||||
Fixed-maturity securities, Cost or Amortized Cost | 1,757 | 3,023 | ||||||
Fixed-maturity securities, Gross Unrealized Gain | 60 | 60 | ||||||
Fixed-maturity securities, Gross Unrealized Loss | (2) | |||||||
Fixed-maturity securities, Estimated Fair Value | 1,817 | 3,081 | ||||||
Fixed-Maturity Securities [Member] | Exchange-Traded Debt [Member] | ||||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||||
Fixed-maturity securities, Cost or Amortized Cost | 2,185 | 3,491 | ||||||
Allowance for Credit Loss | (9) | |||||||
Fixed-maturity securities, Gross Unrealized Gain | 104 | 230 | ||||||
Fixed-maturity securities, Gross Unrealized Loss | (5) | |||||||
Fixed-maturity securities, Estimated Fair Value | 2,289 | 3,707 | ||||||
Fixed-Maturity Securities [Member] | Redeemable Preferred Stock [Member] | ||||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||||
Fixed-maturity securities, Cost or Amortized Cost | 468 | 35 | ||||||
Fixed-maturity securities, Gross Unrealized Gain | 2 | |||||||
Fixed-maturity securities, Gross Unrealized Loss | (1) | |||||||
Fixed-maturity securities, Estimated Fair Value | $ 469 | $ 35 |
Investments - Scheduled Contrac
Investments - Scheduled Contractual Maturities of Fixed-Maturity Securities (Detail) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Investments Debt And Equity Securities [Abstract] | ||
Due in one year or less, Cost or Amortized Cost | $ 12,413 | $ 21,122 |
Due after one year through five years, Cost or Amortized Cost | 23,548 | 43,561 |
Due after five years through ten years, Cost or Amortized Cost | 7,250 | 2,731 |
Due after ten years, Cost or Amortized Cost | 1,805 | 2,851 |
Fixed-maturity securities, Cost or Amortized Cost | 45,016 | 70,265 |
Due in one year or less, Estimated Fair Value | 12,497 | 21,258 |
Due after one year through five years, Estimated Fair Value | 24,209 | 44,339 |
Due after five years through ten years, Estimated Fair Value | 7,444 | 3,060 |
Due after ten years, Estimated Fair Value | 1,903 | 3,065 |
Estimated Fair Value Total | $ 46,053 | $ 71,722 |
Investments - Summary of Sales
Investments - Summary of Sales of Available-for-sale Fixed-Maturity Securities (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Schedule of Available-for-sale Securities [Line Items] | ||||
Proceeds | $ 18,838 | $ 79,284 | ||
Fixed-Maturity Securities [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Proceeds | $ 4,158 | $ 1,098 | 18,838 | 79,284 |
Gross Realized Gains | 94 | 13 | 671 | 1,743 |
Gross Realized Losses | $ (6) | $ (34) | $ (6) | $ (610) |
Investments - Summary of Securi
Investments - Summary of Securities with Gross Unrealized Loss Positions Aggregated by Investment Category (Detail) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Schedule of Available-for-sale Securities [Line Items] | ||
Gross Unrealized Loss, Less than Twelve Months | $ (63) | $ (25) |
Estimated Fair Value, Less than Twelve Months | 10,187 | 6,026 |
Gross Unrealized Loss, Twelve Months or Longer | (20) | |
Estimated Fair Value, Twelve Months or Longer | 331 | |
Gross Unrealized Loss, Total | (83) | (25) |
Estimated Fair Value, Total | 10,518 | 6,026 |
U.S. Treasury and U.S. Government Agencies [Member] | Fixed-Maturity Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Gross Unrealized Loss, Less than Twelve Months | (20) | (1) |
Estimated Fair Value, Less than Twelve Months | 4,634 | 1,337 |
Gross Unrealized Loss, Total | (20) | (1) |
Estimated Fair Value, Total | 4,634 | 1,337 |
Corporate Bonds [Member] | Fixed-Maturity Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Gross Unrealized Loss, Less than Twelve Months | (42) | (17) |
Estimated Fair Value, Less than Twelve Months | 5,129 | 3,085 |
Gross Unrealized Loss, Twelve Months or Longer | (20) | 0 |
Estimated Fair Value, Twelve Months or Longer | 331 | 0 |
Gross Unrealized Loss, Total | (62) | (17) |
Estimated Fair Value, Total | 5,460 | 3,085 |
Exchange-Traded Debt [Member] | Fixed-Maturity Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Gross Unrealized Loss, Less than Twelve Months | (5) | |
Estimated Fair Value, Less than Twelve Months | 336 | |
Gross Unrealized Loss, Twelve Months or Longer | 0 | |
Estimated Fair Value, Twelve Months or Longer | 0 | |
Gross Unrealized Loss, Total | (5) | |
Estimated Fair Value, Total | 336 | |
Redeemable Preferred Stock [Member] | Fixed-Maturity Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Gross Unrealized Loss, Less than Twelve Months | (1) | |
Estimated Fair Value, Less than Twelve Months | 424 | |
Gross Unrealized Loss, Twelve Months or Longer | ||
Estimated Fair Value, Twelve Months or Longer | ||
Gross Unrealized Loss, Total | (1) | |
Estimated Fair Value, Total | $ 424 | |
State, Municipalities, and Political Subdivisions [Member] | Fixed-Maturity Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Gross Unrealized Loss, Less than Twelve Months | (2) | |
Estimated Fair Value, Less than Twelve Months | 1,268 | |
Gross Unrealized Loss, Twelve Months or Longer | 0 | |
Estimated Fair Value, Twelve Months or Longer | 0 | |
Gross Unrealized Loss, Total | (2) | |
Estimated Fair Value, Total | $ 1,268 |
Investments (Other-than-tempora
Investments (Other-than-temporary Impairment) - Additional Information (Detail) - Security | Sep. 30, 2021 | Dec. 31, 2020 |
Investments Debt And Equity Securities [Abstract] | ||
Number of securities in an unrealized loss position | 32 | 12 |
Investments - Summary of Allowa
Investments - Summary of Allowance for Credit Losses of Available-for-Sale Securities (Detail) - USD ($) $ in Thousands | 3 Months Ended | |||||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | |
Investments Debt And Equity Securities [Abstract] | ||||||
Beginning Balance | $ 0 | $ 579 | $ 588 | $ 526 | $ 439 | $ 0 |
Credit loss expense | 0 | 70 | 87 | 439 | ||
Reductions for securities sold | (9) | |||||
Reductions for securities exchanged | (579) | |||||
Ending Balance | $ 0 | $ 0 | $ 579 | $ 596 | $ 526 | $ 439 |
Investments - Summary of Amor_2
Investments - Summary of Amortized Cost, Gross Unrealized Gains and Losses, and Estimated Fair Value of Equity Securities (Detail) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Investments Debt And Equity Securities [Abstract] | ||
Cost | $ 46,771 | $ 47,029 |
Gross Unrealized Gain | 4,592 | 4,649 |
Gross Unrealized Loss | (1,140) | (548) |
Estimated Fair Value | $ 50,223 | $ 51,130 |
Investments - Summary of Unreal
Investments - Summary of Unrealized Gains and Losses in Consolidated Statements of Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Gain (Loss) on Securities [Line Items] | ||||
Net unrealized (losses) gains recognized | $ (1,869) | $ 1,340 | $ (649) | $ (581) |
Equity Securities [Member] | ||||
Gain (Loss) on Securities [Line Items] | ||||
Net (losses) gains recognized | 916 | 1,521 | 2,620 | (2,363) |
Exclude: Net realized gains (losses) recognized for securities sold | $ 953 | $ 181 | $ 3,269 | $ (1,782) |
Investments - Summary of Procee
Investments - Summary of Proceeds Received and The Gross Realized Gains and Losses From Sales of Equity Securities (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Debt and Equity Securities, FV-NI [Line Items] | ||||
Proceeds | $ 81,292 | $ 17,385 | ||
Equity Securities [Member] | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Proceeds | $ 24,781 | $ 4,930 | 81,292 | 17,385 |
Gross Realized Gains | 1,141 | 244 | 4,266 | 1,213 |
Gross Realized Losses | $ (188) | $ (63) | $ (997) | $ (2,995) |
Investments - Schedule of Compa
Investments - Schedule of Company's Investments in Limited Partnerships (Detail) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Investment Securities [Line Items] | ||
Carrying Value | $ 26,039 | $ 27,691 |
Unfunded Balance | 13,980 | 10,304 |
Private US Lower Middle Market Companies [Member] | ||
Investment Securities [Line Items] | ||
Carrying Value | 6,100 | 8,131 |
Unfunded Balance | $ 2,085 | $ 2,085 |
Percentage investment held by the entity | 15.37% | 15.37% |
Bank Loans Public and Private Corporate Bonds Asset Backed Securities Equity and Debt Restructuring [Member] | ||
Investment Securities [Line Items] | ||
Carrying Value | $ 4,198 | $ 5,512 |
Percentage investment held by the entity | 1.76% | 1.76% |
Power Utility and Energy Industries and Infrastructure [Member] | ||
Investment Securities [Line Items] | ||
Carrying Value | $ 6,179 | $ 6,513 |
Unfunded Balance | $ 1,401 | $ 1,401 |
Percentage investment held by the entity | 0.18% | 0.18% |
Senior and Junior Debts of Private Equity-Backed Companies [Member] | ||
Investment Securities [Line Items] | ||
Carrying Value | $ 4,338 | $ 4,262 |
Percentage investment held by the entity | 0.47% | 0.47% |
Mature Real Estate Private Equity Funds And Portfolio Globally [Member] | ||
Investment Securities [Line Items] | ||
Carrying Value | $ 5,224 | $ 3,273 |
Unfunded Balance | $ 5,494 | $ 6,818 |
Percentage investment held by the entity | 2.24% | 2.24% |
Credit and Equity Investments, Primarily in Private Equity-Owned Companies [Member] | ||
Investment Securities [Line Items] | ||
Carrying Value | $ 0 | |
Unfunded Balance | $ 5,000 | |
Percentage investment held by the entity | 0.00% |
Investments - Schedule of Com_2
Investments - Schedule of Company's Investments in Limited Partnerships (Parenthetical) (Detail) $ in Thousands | 9 Months Ended |
Sep. 30, 2021USD ($) | |
Schedule Of Investments [Line Items] | |
Additional funding circumstances | $ 843 |
Private US Lower Middle Market Companies [Member] | |
Schedule Of Investments [Line Items] | |
Expected term | 10 years |
Investment additional maturity term | 2 years |
Bank Loans Public and Private Corporate Bonds Asset Backed Securities Equity and Debt Restructuring [Member] | |
Schedule Of Investments [Line Items] | |
Expected term | 3 years |
Investment additional maturity term | 2 years |
Power Utility and Energy Industries and Infrastructure [Member] | |
Schedule Of Investments [Line Items] | |
Expected term | 10 years |
Investment additional maturity term | 3 years |
Senior and Junior Debts of Private Equity-Backed Companies [Member] | |
Schedule Of Investments [Line Items] | |
Expected term | 6 years |
Investment additional maturity term | 2 years |
Mature Real Estate Private Equity Funds And Portfolio Globally [Member] | |
Schedule Of Investments [Line Items] | |
Expected term | 8 years |
Credit and Equity Investments, Primarily in Private Equity-Owned Companies [Member] | |
Schedule Of Investments [Line Items] | |
Expected term | 8 years |
Investments - Summary of Unaudi
Investments - Summary of Unaudited Financial Information and Unaudited Financial Position of Limited Partnerships (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Schedule Of Equity Method Investments [Line Items] | |||||
Total income | $ 99,217 | $ 104,027 | $ 295,595 | $ 240,124 | |
Net (loss) income | (4,868) | 15,390 | 5,807 | 24,873 | |
Balance sheet: | |||||
Total assets | 1,076,114 | 1,076,114 | $ 941,313 | ||
Total liabilities | 695,855 | 695,855 | 740,177 | ||
Limited Partnership [Member] | |||||
Schedule Of Equity Method Investments [Line Items] | |||||
Total income | (13,796) | 259,635 | 359,885 | (1,421,381) | |
Total expenses | (24,828) | (26,637) | (105,548) | (107,157) | |
Net (loss) income | (38,624) | $ 232,998 | 254,337 | $ (1,528,538) | |
Balance sheet: | |||||
Total assets | 5,562,430 | 5,562,430 | 5,529,199 | ||
Total liabilities | $ 505,843 | $ 505,843 | $ 612,048 |
Investments (Limited Partnershi
Investments (Limited Partnership Investments) - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Schedule Of Investments [Line Items] | |||||
Recognized investment income (loss) | $ 1,132 | $ 689 | $ 3,491 | $ (2,058) | |
Return on investment | 2,345 | 650 | |||
Limited Partnership [Member] | |||||
Schedule Of Investments [Line Items] | |||||
Cash distributions | 1,535 | 850 | 5,980 | 1,742 | |
Return on investment | 553 | $ 72 | 2,345 | $ 650 | |
Company's net cumulative contributed capital to the partnership | 26,474 | 26,474 | $ 29,272 | ||
Maximum exposure loss relating to VIE | $ 26,039 | $ 26,039 | $ 27,691 |
Investments (Investment in Unco
Investments (Investment in Unconsolidated Joint Venture) - Additional Information (Detail) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Schedule Of Investments [Line Items] | |||||
Return on investment | $ 2,345 | $ 650 | |||
FMKT Mel JV, LLC [Member] | |||||
Schedule Of Investments [Line Items] | |||||
Maximum exposure loss relating to VIE | $ 370 | $ 370 | 370 | $ 705 | |
Undistributed gain (loss) after equity distribution | 0 | 0 | $ 0 | $ 0 | |
Return on investment | 114 | ||||
Gain on sale | $ 540 | ||||
Cash distributions | $ 737 | $ 0 |
Investments - Summary of Unau_2
Investments - Summary of Unaudited Financial Information and Unaudited Financial Position of Joint Venture (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Operating results: | |||||
Total revenues | $ 99,217 | $ 104,027 | $ 295,595 | $ 240,124 | |
Net (loss) income | (4,868) | 15,390 | 5,807 | 24,873 | |
The Company’s share of net loss* | 423 | (46) | |||
Balance sheet: | |||||
Other | 13,174 | 13,174 | $ 22,611 | ||
Total assets | 1,076,114 | 1,076,114 | 941,313 | ||
Other liabilities | 31,372 | 31,372 | 40,771 | ||
Total liabilities, redeemable noncontrolling interest and equity | 1,076,114 | 1,076,114 | 941,313 | ||
Investment in unconsolidated joint venture, at equity | 370 | 370 | 705 | ||
Unconsolidated Joint Venture [Member] | |||||
Balance sheet: | |||||
Property and equipment, net | 362 | 362 | 705 | ||
Cash | 37 | 37 | 70 | ||
Other | 18 | 18 | 13 | ||
Total assets | 417 | 417 | 788 | ||
Other liabilities | 6 | 6 | 5 | ||
Members’ capital | 411 | 411 | 783 | ||
Total liabilities, redeemable noncontrolling interest and equity | 417 | 417 | $ 788 | ||
Unconsolidated Joint Venture [Member] | FMKT Mel JV, LLC [Member] | |||||
Operating results: | |||||
Total revenues | 540 | 540 | |||
Total expenses | (14) | (19) | (70) | (51) | |
Net (loss) income | 526 | (19) | 470 | (51) | |
Operating Expense [Member] | FMKT Mel JV, LLC [Member] | |||||
Operating results: | |||||
The Company’s share of net loss* | $ 473 | $ (18) | $ 423 | $ (46) |
Investments - Summary of Unau_3
Investments - Summary of Unaudited Financial Information and Unaudited Financial Position of Joint Venture (Parenthetical) (Detail) | 9 Months Ended |
Sep. 30, 2021 | |
Unconsolidated Joint Venture [Member] | |
Variable Interest Entity [Line Items] | |
Percentage of operating results | 90.00% |
Investments - Summary of Real E
Investments - Summary of Real Estate Investment (Detail) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Real Estate [Abstract] | ||
Land | $ 39,069 | $ 39,069 |
Land improvements | 11,917 | 11,917 |
Buildings | 29,405 | 29,115 |
Tenant and leasehold improvements | 1,488 | 1,487 |
Other | 1,229 | 1,465 |
Total, at cost | 83,108 | 83,053 |
Less: accumulated depreciation and amortization | (9,445) | (8,581) |
Real estate investments | $ 73,663 | $ 74,472 |
Investments (Real Estate Invest
Investments (Real Estate Investments) - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Schedule Of Investments [Line Items] | ||||
Loss on disposal of assets | $ 21 | |||
Depreciation and amortization expenses under real estate investments | $ 504 | $ 461 | 1,605 | $ 1,418 |
Real Estate Investments [Member] | ||||
Schedule Of Investments [Line Items] | ||||
Depreciation and amortization expenses under real estate investments | $ 475 | $ 431 | $ 1,445 | $ 1,318 |
Investments - Investment (Loss)
Investments - Investment (Loss) Income Summarized (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Schedule Of Investments [Line Items] | ||||
Recognized investment income (loss) | $ 1,132 | $ 689 | $ 3,491 | $ (2,058) |
Real estate investments | 305 | (34) | 3,646 | (299) |
Net investment income | 2,520 | 1,832 | 9,749 | 3,244 |
Available-for-Sale-Fixed-Maturity Securities [Member] | ||||
Schedule Of Investments [Line Items] | ||||
Investment income | 266 | 771 | 1,091 | 3,529 |
Equity Securities [Member] | ||||
Schedule Of Investments [Line Items] | ||||
Investment income | 322 | 336 | 1,013 | 970 |
Limited Partnership Investment [Member] | ||||
Schedule Of Investments [Line Items] | ||||
Recognized investment income (loss) | 1,132 | 689 | 3,491 | (2,058) |
Cash and Cash Equivalents [Member] | ||||
Schedule Of Investments [Line Items] | ||||
Investment income | 156 | 212 | 473 | 1,513 |
Short-term Investments [Member] | ||||
Schedule Of Investments [Line Items] | ||||
Investment income | 2 | |||
Investment income - adjustment | 1 | |||
Investment Expense [Member] | ||||
Schedule Of Investments [Line Items] | ||||
Investment expense | (134) | (125) | (388) | (367) |
Net income (loss) from unconsolidated joint venture [Member] | ||||
Schedule Of Investments [Line Items] | ||||
Investment income | $ 473 | $ (18) | $ 423 | $ (46) |
Investments (Investment (Loss)
Investments (Investment (Loss) Income Summarized) - Additional Information (Detail) $ in Thousands | 9 Months Ended |
Sep. 30, 2021USD ($) | |
Investments Debt And Equity Securities [Abstract] | |
Net gain from legal settlement of real estate investments | $ 2,790 |
Investments (Other Investments)
Investments (Other Investments) - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Other Investments [Member] | ||||
Schedule Of Investments [Line Items] | ||||
Net realized gains (Losses) | $ 191 | $ 17 | $ 1,018 | $ 17 |
Comprehensive Income (Loss) - S
Comprehensive Income (Loss) - Schedule of Components of Other Comprehensive Income or Loss and Related Tax Effects Allocated to Each Component (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Before Tax | ||||
Net unrealized (losses) gains | $ (258) | $ 247 | $ (341) | $ 56 |
Credit losses on investments | 0 | 70 | 0 | 596 |
Call and repayment gains charged to investment income | 0 | (15) | (2) | (231) |
Reclassification adjustment for realized (gains) losses | (88) | 21 | (665) | (1,133) |
Total other comprehensive (losses) gains | (346) | 323 | (1,008) | (712) |
Income Tax Effect | ||||
Net unrealized gains (losses) | (63) | 61 | (83) | 14 |
Credit losses on investments | 0 | 17 | 0 | 146 |
Call and repayment gains charged to investment income | 0 | (4) | (1) | (56) |
Reclassification adjustment for realized gains | (22) | 5 | (163) | (278) |
Total other comprehensive (losses) gains | (85) | 79 | (247) | (174) |
Net of Tax | ||||
Net unrealized gains (losses) | (195) | 186 | (258) | 42 |
Credit losses on investments | 0 | 53 | 0 | 450 |
Call and repayment gains charged to investment income | 0 | (11) | (1) | (175) |
Reclassification adjustment for realized gains | (66) | 16 | (502) | (855) |
Total other comprehensive (loss) income, net of income taxes | $ (261) | $ 244 | $ (761) | $ (538) |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Abstract] | |
Money Market Funds and Certificate Of Deposit Maturity Period | 90 days |
Fair Value Measurements - Compo
Fair Value Measurements - Components of Long-Term Debt and Methods Used in Estimating Fair Values (Detail) | 9 Months Ended |
Sep. 30, 2021 | |
4.25% Convertible Senior Notes [Member] | |
Debt Instrument [Line Items] | |
Debt instrument, maturity date | 2037 |
Valuation Methodology | Quoted price |
3.90% Promissory Note [Member] | |
Debt Instrument [Line Items] | |
Debt instrument, maturity date | 2032 |
Valuation Methodology | Discounted cash flow method/Level 3 inputs |
3.75% Callable Promissory Note [Member] | |
Debt Instrument [Line Items] | |
Debt instrument, maturity date | 2036 |
Valuation Methodology | Discounted cash flow method/Level 3 inputs |
4.55% Promissory Note [Member] | |
Debt Instrument [Line Items] | |
Debt instrument, maturity date | 2036 |
Valuation Methodology | Discounted cash flow method/Level 3 inputs |
Fair Value Measurements - Com_2
Fair Value Measurements - Components of Long-Term Debt and Methods Used in Estimating Fair Values (Parenthetical) (Detail) | Sep. 30, 2021 |
Debt Instrument [Line Items] | |
Debt instrument stated interest rate | 4.25% |
4.25% Convertible Senior Notes [Member] | |
Debt Instrument [Line Items] | |
Debt instrument stated interest rate | 4.25% |
3.90% Promissory Note [Member] | |
Debt Instrument [Line Items] | |
Debt instrument stated interest rate | 3.90% |
3.75% Callable Promissory Note [Member] | |
Debt Instrument [Line Items] | |
Debt instrument stated interest rate | 3.75% |
4.55% Promissory Note [Member] | |
Debt Instrument [Line Items] | |
Debt instrument stated interest rate | 4.55% |
Fair Value Measurements - Avail
Fair Value Measurements - Available-for-Sale Securities Measured at Fair Value (Detail) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Financial Assets: | ||
Restricted cash | $ 2,400 | $ 2,400 |
Available For Sale Securities Debt Securities | 46,053 | 71,722 |
Equity Securities Fv Ni | 50,223 | 51,130 |
Fair Value, Measurements, Recurring [Member] | ||
Financial Assets: | ||
Cash and cash equivalents | 569,134 | 431,341 |
Restricted cash | 2,400 | 2,400 |
Available For Sale Securities Debt Securities | 46,053 | 71,722 |
Equity Securities Fv Ni | 50,223 | 51,130 |
Fair Value, Measurements, Recurring [Member] | (Level 1) [Member] | ||
Financial Assets: | ||
Cash and cash equivalents | 569,134 | 431,341 |
Restricted cash | 2,400 | 2,400 |
Available For Sale Securities Debt Securities | 41,536 | 65,909 |
Equity Securities Fv Ni | 50,223 | 51,130 |
Fair Value, Measurements, Recurring [Member] | (Level 2) [Member] | ||
Financial Assets: | ||
Available For Sale Securities Debt Securities | 4,517 | 5,813 |
U.S. Treasury and U.S. Government Agencies [Member] | Fair Value, Measurements, Recurring [Member] | ||
Financial Assets: | ||
Available For Sale Securities Debt Securities | 12,953 | 13,968 |
U.S. Treasury and U.S. Government Agencies [Member] | Fair Value, Measurements, Recurring [Member] | (Level 1) [Member] | ||
Financial Assets: | ||
Available For Sale Securities Debt Securities | 10,253 | 11,236 |
U.S. Treasury and U.S. Government Agencies [Member] | Fair Value, Measurements, Recurring [Member] | (Level 2) [Member] | ||
Financial Assets: | ||
Available For Sale Securities Debt Securities | 2,700 | 2,732 |
Corporate Bonds [Member] | Fair Value, Measurements, Recurring [Member] | ||
Financial Assets: | ||
Available For Sale Securities Debt Securities | 28,525 | 50,931 |
Corporate Bonds [Member] | Fair Value, Measurements, Recurring [Member] | (Level 1) [Member] | ||
Financial Assets: | ||
Available For Sale Securities Debt Securities | 28,525 | 50,931 |
State, Municipalities, and Political Subdivisions [Member] | Fair Value, Measurements, Recurring [Member] | ||
Financial Assets: | ||
Available For Sale Securities Debt Securities | 1,817 | 3,081 |
State, Municipalities, and Political Subdivisions [Member] | Fair Value, Measurements, Recurring [Member] | (Level 2) [Member] | ||
Financial Assets: | ||
Available For Sale Securities Debt Securities | 1,817 | 3,081 |
Exchange-Traded Debt [Member] | Fair Value, Measurements, Recurring [Member] | ||
Financial Assets: | ||
Available For Sale Securities Debt Securities | 2,289 | 3,707 |
Exchange-Traded Debt [Member] | Fair Value, Measurements, Recurring [Member] | (Level 1) [Member] | ||
Financial Assets: | ||
Available For Sale Securities Debt Securities | 2,289 | 3,707 |
Redeemable Preferred Stock [Member] | Fair Value, Measurements, Recurring [Member] | ||
Financial Assets: | ||
Available For Sale Securities Debt Securities | 469 | 35 |
Redeemable Preferred Stock [Member] | Fair Value, Measurements, Recurring [Member] | (Level 1) [Member] | ||
Financial Assets: | ||
Available For Sale Securities Debt Securities | $ 469 | $ 35 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Fair Value Information for Financial Assets and Liabilities Carried on Consolidated Balance Sheets (Detail) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Financial Liabilities: | ||
Revolving credit facility | $ 0 | $ 23,750 |
Total long-term debt | 78,083 | 156,511 |
Carrying Value [Member] | ||
Financial Liabilities: | ||
Revolving credit facility | 23,750 | |
Total long-term debt | 78,047 | 156,468 |
Carrying Value [Member] | 4.25% Convertible Senior Notes [Member] | ||
Financial Liabilities: | ||
Total long-term debt | 56,227 | 133,964 |
Carrying Value [Member] | 3.90% Promissory Note [Member] | ||
Financial Liabilities: | ||
Total long-term debt | 9,371 | 9,617 |
Carrying Value [Member] | 3.75% Callable Promissory Note | ||
Financial Liabilities: | ||
Total long-term debt | 7,241 | 7,502 |
Carrying Value [Member] | 4.55% Promissory Note [Member] | ||
Financial Liabilities: | ||
Total long-term debt | 5,208 | 5,385 |
Estimate of Fair Value Measurement [Member] | ||
Financial Liabilities: | ||
Revolving credit facility | 23,750 | |
Total long-term debt | 128,233 | 170,836 |
Estimate of Fair Value Measurement [Member] | (Level 2) [Member] | ||
Financial Liabilities: | ||
Revolving credit facility | 23,750 | |
Total long-term debt | 103,490 | 147,236 |
Estimate of Fair Value Measurement [Member] | (Level 3) [Member] | ||
Financial Liabilities: | ||
Total long-term debt | 24,743 | 23,600 |
Estimate of Fair Value Measurement [Member] | 4.25% Convertible Senior Notes [Member] | ||
Financial Liabilities: | ||
Total long-term debt | 103,490 | 147,236 |
Estimate of Fair Value Measurement [Member] | 4.25% Convertible Senior Notes [Member] | (Level 2) [Member] | ||
Financial Liabilities: | ||
Total long-term debt | 103,490 | 147,236 |
Estimate of Fair Value Measurement [Member] | 3.90% Promissory Note [Member] | ||
Financial Liabilities: | ||
Total long-term debt | 10,598 | 10,044 |
Estimate of Fair Value Measurement [Member] | 3.90% Promissory Note [Member] | (Level 3) [Member] | ||
Financial Liabilities: | ||
Total long-term debt | 10,598 | 10,044 |
Estimate of Fair Value Measurement [Member] | 3.75% Callable Promissory Note | ||
Financial Liabilities: | ||
Total long-term debt | 7,986 | 7,747 |
Estimate of Fair Value Measurement [Member] | 3.75% Callable Promissory Note | (Level 3) [Member] | ||
Financial Liabilities: | ||
Total long-term debt | 7,986 | 7,747 |
Estimate of Fair Value Measurement [Member] | 4.55% Promissory Note [Member] | ||
Financial Liabilities: | ||
Total long-term debt | 6,159 | 5,809 |
Estimate of Fair Value Measurement [Member] | 4.55% Promissory Note [Member] | (Level 3) [Member] | ||
Financial Liabilities: | ||
Total long-term debt | $ 6,159 | $ 5,809 |
Fair Value Measurements - Sch_2
Fair Value Measurements - Schedule of Fair Value Information for Financial Assets and Liabilities Carried on Consolidated Balance Sheets (Parenthetical) (Detail) | Sep. 30, 2021 | Dec. 31, 2020 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt instrument stated interest rate | 4.25% | |
4.25% Convertible Senior Notes [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt instrument stated interest rate | 4.25% | |
3.90% Promissory Note [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt instrument stated interest rate | 3.90% | |
4.55% Promissory Note [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt instrument stated interest rate | 4.55% | |
Estimate of Fair Value Measurement [Member] | 4.25% Convertible Senior Notes [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt instrument stated interest rate | 4.25% | 4.25% |
Estimate of Fair Value Measurement [Member] | 3.90% Promissory Note [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt instrument stated interest rate | 3.90% | 3.90% |
Estimate of Fair Value Measurement [Member] | 3.75% Callable Promissory Note | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt instrument stated interest rate | 3.75% | 3.75% |
Estimate of Fair Value Measurement [Member] | 4.55% Promissory Note [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt instrument stated interest rate | 4.55% | 4.55% |
Carrying Value [Member] | 4.25% Convertible Senior Notes [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt instrument stated interest rate | 4.25% | 4.25% |
Carrying Value [Member] | 3.90% Promissory Note [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt instrument stated interest rate | 3.90% | 3.90% |
Carrying Value [Member] | 3.75% Callable Promissory Note | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt instrument stated interest rate | 3.75% | 3.75% |
Carrying Value [Member] | 4.55% Promissory Note [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt instrument stated interest rate | 4.55% | 4.55% |
Intangible Assets, Net - Detail
Intangible Assets, Net - Details of Intangible Assets, Net (Detail) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Finite Lived Intangible Assets [Line Items] | ||
Total, at cost | $ 13,805 | $ 5,976 |
Less: accumulated amortization | (2,998) | (2,408) |
Intangible assets, net | 10,807 | 3,568 |
Anchor Tenant Relationships [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Total, at cost | 1,761 | 1,761 |
In-Place Leases [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Total, at cost | 4,215 | 4,215 |
Policy Renewal Rights [Member] | United [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Total, at cost | 7,634 | |
Non Compete Agreement [Member] | United [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Total, at cost | $ 195 |
Intangible Assets, Net - Schedu
Intangible Assets, Net - Schedule of Remaining Weighted-Average Amortization Period for Intangible Assets (Detail) | 9 Months Ended |
Sep. 30, 2021 | |
Anchor Tenant Relationships [Member] | |
Finite Lived Intangible Assets [Line Items] | |
Remaining weighted-average amortization period | 12 years 7 months 6 days |
In-Place Leases [Member] | |
Finite Lived Intangible Assets [Line Items] | |
Remaining weighted-average amortization period | 9 years 10 months 24 days |
Intangible Assets, Net - Sche_2
Intangible Assets, Net - Schedule of Remaining Weighted-Average Amortization Period for Intangible Assets (Parenthetical) (Detail) | 9 Months Ended |
Sep. 30, 2021 | |
Policy Renewal Rights [Member] | United [Member] | |
Finite Lived Intangible Assets [Line Items] | |
Remaining weighted-average amortization period | 4 years |
Intangible Assets, Net - Additi
Intangible Assets, Net - Additional Information (Detail) - USD ($) $ in Thousands | Jan. 18, 2021 | Sep. 30, 2021 | Dec. 31, 2020 |
Finite Lived Intangible Assets [Line Items] | |||
Intangible assets, net | $ 10,807 | $ 3,568 | |
Issuance of common stock shares | 100,000 | 100,000 | |
Commission percentage on aggregate replacement premium | 6.00% | 6.00% | |
Contingent consideration payable | $ 2,419 | ||
Other Liabilities [Member] | |||
Finite Lived Intangible Assets [Line Items] | |||
Contingent consideration payable | 2,419 | ||
Minimum [Member] | |||
Finite Lived Intangible Assets [Line Items] | |||
Aggregate replacement premium | $ 80,000 | 80,000 | |
Renewal Rights and Non-compete Agreement [Member] | United [Member] | |||
Finite Lived Intangible Assets [Line Items] | |||
Intangible assets, net | 7,829 | ||
Consideration paid as common stock | 5,410 | ||
Contingent liability | $ 2,419 |
Other Assets - Summary of Other
Other Assets - Summary of Other Assets (Detail) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | ||
Benefits receivable related to retrospective reinsurance contracts | $ 1,819 | $ 10,920 |
Prepaid expenses | 3,493 | 2,365 |
Deposits | 969 | 445 |
Lease acquisition costs, net | 521 | 453 |
Other | 6,372 | 8,428 |
Total other assets | $ 13,174 | $ 22,611 |
Revolving Credit Facility - Add
Revolving Credit Facility - Additional Information (Detail) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Line of Credit Facility [Line Items] | ||||||
Interest Expense | $ 1,664 | $ 2,856 | $ 5,743 | $ 8,846 | ||
Revolving credit facility | 0 | 0 | $ 23,750 | |||
Revolving Credit Facility [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Repayment of revolving credit facility | $ 23,750 | |||||
Interest Expense | 24 | 108 | 153 | 423 | ||
Amortization of Debt Issuance Costs | 25 | $ 39 | 74 | $ 118 | ||
Revolving credit facility | 0 | 0 | ||||
Credit facility, borrowing capacity | $ 65,000 | $ 65,000 |
Long-Term Debt - Summary of Lon
Long-Term Debt - Summary of Long-Term Debt (Detail) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||
Total principal amount | $ 78,588 | $ 162,097 |
Finance Lease Liability | 36 | 43 |
Less: unamortized discount and issuance costs | 505 | 5,586 |
Total long-term debt | 78,083 | 156,511 |
4.25% Convertible Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Total principal amount | 56,409 | 139,200 |
3.90% Promissory Note [Member] | ||
Debt Instrument [Line Items] | ||
Total principal amount | 9,519 | 9,777 |
3.75% Callable Promissory Note [Member] | ||
Debt Instrument [Line Items] | ||
Total principal amount | 7,337 | 7,607 |
4.55% Promissory Note [Member] | ||
Debt Instrument [Line Items] | ||
Total principal amount | $ 5,287 | $ 5,470 |
Long-Term Debt - Summary of L_2
Long-Term Debt - Summary of Long-Term Debt (Parenthetical) (Detail) | Sep. 30, 2021 |
Debt Instrument [Line Items] | |
Debt instrument stated interest rate | 4.25% |
4.25% Convertible Senior Notes [Member] | |
Debt Instrument [Line Items] | |
Debt instrument stated interest rate | 4.25% |
3.90% Promissory Note [Member] | |
Debt Instrument [Line Items] | |
Debt instrument stated interest rate | 3.90% |
Long-Term Debt (Convertible Sen
Long-Term Debt (Convertible Senior Notes) - Additional Information (Detail) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021USD ($)$ / sharesshares | Sep. 30, 2020USD ($)$ / shares | Sep. 30, 2021USD ($)TradingDay$ / shares | Sep. 30, 2020USD ($)$ / shares | |
Debt Instrument [Line Items] | ||||
Debt instrument stated interest rate | 4.25% | 4.25% | ||
Cash dividends on common stock | $ / shares | $ 0.40 | $ 0.40 | $ 1.20 | $ 1.20 |
Debt issuance costs, remaining amortization period | 5 months | |||
Convertible notes cash consideration | $ 1,414 | $ 0 | ||
Debt conversion expense | $ 1,273 | $ 0 | $ 1,273 | $ 0 |
Conversion By Election [Member] | ||||
Debt Instrument [Line Items] | ||||
Number of stock issued upon conversion of convertible note | shares | 5,119 | |||
Induced Conversion [Member] | ||||
Debt Instrument [Line Items] | ||||
Number of stock issued upon conversion of convertible note | shares | 1,356,835 | |||
4.25% Convertible Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument stated interest rate | 4.25% | 4.25% | ||
Convertible debt, conversion ratio | 16.4668 | |||
Convertible debt, conversion price | $ / shares | $ 60.73 | $ 60.73 | ||
4.25% Convertible Senior Notes [Member] | Conversion By Election [Member] | ||||
Debt Instrument [Line Items] | ||||
Convertible note conversion amount | $ 311 | |||
4.25% Convertible Senior Notes [Member] | Induced Conversion [Member] | ||||
Debt Instrument [Line Items] | ||||
Convertible note conversion amount | $ 82,480 | |||
4.25% Convertible Senior Notes [Member] | Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
Cash dividends on common stock | $ / shares | $ 0.35 | |||
Convertible Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Convertible debt, threshold percentage of stock trigger price | 130.00% | |||
Convertible debt, threshold consecutive trading days | TradingDay | 30 | |||
Convertible Senior Notes [Member] | Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
Convertible debt, threshold trading days | TradingDay | 20 |
Long-Term Debt - Summary of Fut
Long-Term Debt - Summary of Future Maturities of Long-Term Debt (Detail) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Long Term Debt Rolling Maturity [Abstract] | ||
2021 | $ 57,409 | |
2022 | 1,036 | |
2023 | 1,065 | |
2024 | 1,106 | |
2025 | 1,151 | |
Thereafter | 16,821 | |
Total | $ 78,588 | $ 162,097 |
Long-Term Debt - Schedule of In
Long-Term Debt - Schedule of Interest Expense Related to Long-Term Debt (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Interest Expense Debt [Abstract] | ||||
Contractual interest | $ 1,421 | $ 1,736 | $ 4,832 | $ 5,374 |
Non-cash expense | 219 | 1,053 | 758 | 3,174 |
Capitalized interest | (41) | (125) | ||
Total | $ 1,640 | $ 2,748 | $ 5,590 | $ 8,423 |
Reinsurance - Additional Inform
Reinsurance - Additional Information (Detail) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2021USD ($) | Sep. 30, 2021USD ($)Reinsurer | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($)Reinsurer | Sep. 30, 2020USD ($) | Dec. 31, 2020USD ($)Reinsurer | |
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | ||||||
Percentage of ceding commission on ceded premiums written | 30.00% | |||||
Reinsurance recoverable | $ 49,126 | $ 49,126 | $ 85,146 | |||
Number of reinsurers | Reinsurer | 54 | 54 | 38 | |||
Percentage of gross reinsurance recoverable major reinsurers | 66.40% | |||||
Ceded losses recognized as a reduction in losses and loss adjustment expenses | $ 1,830 | $ 1,871 | $ 2,424 | $ 2,220 | ||
Decrease in credit loss expense | 13 | 14 | 41 | 363 | ||
Allowances for credit losses related to the reinsurance recoverable balance | 44 | 44 | $ 85 | |||
Reduction in premiums ceded | 1,364 | 4,680 | 9,619 | 10,440 | ||
Other assets | 13,174 | 13,174 | 22,611 | |||
Reinsurance premium refund received | $ 18,720 | |||||
Assumed premiums written | 30,840 | $ (13) | 88,311 | $ (92) | ||
Premiums receivable | 43,078 | 43,078 | 68,382 | |||
Reinsurance payable on paid losses and loss adjustment expenses | 4,727 | 4,727 | 0 | |||
United [Member] | ||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | ||||||
Assumed premiums written | 30,840 | 88,311 | ||||
Net amount receivable | 6,636 | |||||
Premiums receivable | 14,951 | 14,951 | ||||
Ceding commission payable | 3,588 | 3,588 | ||||
Reinsurance payable on paid losses and loss adjustment expenses | 4,727 | 4,727 | ||||
Reinsurance [Member] | ||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | ||||||
Other assets | $ 1,819 | $ 1,819 | $ 10,920 | |||
Reinsurance Recoverable [Member] | ||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | ||||||
Number of reinsurers | Reinsurer | 3 | 3 |
Reinsurance - Impact of the Rei
Reinsurance - Impact of the Reinsurance Contracts on Premiums Written and Earned (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Premiums Written: | ||||
Direct | $ 143,426 | $ 116,464 | $ 396,781 | $ 364,942 |
Assumed | 30,840 | (13) | 88,311 | (92) |
Gross written | 174,266 | 116,451 | 485,092 | 364,850 |
Ceded | (55,577) | (44,231) | (145,112) | (109,304) |
Net premiums written | 118,689 | 72,220 | 339,980 | 255,546 |
Premiums Earned: | ||||
Direct | 120,763 | 106,337 | 346,788 | 303,956 |
Assumed | 29,046 | 357 | 73,403 | 2,906 |
Gross earned | 149,809 | 106,694 | 420,191 | 306,862 |
Ceded | (55,577) | (44,231) | (145,112) | (109,304) |
Net premiums earned | $ 94,232 | $ 62,463 | $ 275,079 | $ 197,558 |
Losses and Loss Adjustment Ex_3
Losses and Loss Adjustment Expenses - Losses and LAE (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Liability For Unpaid Claims And Claims Adjustment Expense Net [Abstract] | |||||
Net balance, beginning of period* | $ 154,901 | $ 123,129 | $ 141,065 | $ 98,174 | |
Incurred, net of reinsurance, related to: | |||||
Current period | 53,834 | 50,543 | 147,064 | 116,839 | |
Prior period | 8,830 | 1,200 | 17,268 | 2,825 | |
Total incurred, net of reinsurance | 62,664 | 51,743 | 164,332 | 119,664 | |
Paid, net of reinsurance, related to: | |||||
Current period | (31,663) | (21,175) | (59,265) | (36,988) | |
Prior period | (22,237) | (9,386) | (82,467) | (36,539) | |
Total paid, net of reinsurance | (53,900) | (30,561) | (141,732) | (73,527) | |
Net balance, end of period | 163,665 | 144,311 | 163,665 | 144,311 | |
Add: reinsurance recoverable before allowance for credit losses | 39,512 | 75,034 | 39,512 | 75,034 | |
Gross balance, end of period | $ 203,177 | $ 219,345 | $ 203,177 | $ 219,345 | $ 212,169 |
Losses and Loss Adjustment Ex_4
Losses and Loss Adjustment Expenses - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Reserves For Losses And Loss Adjustment Expenses [Line Items] | ||||
Claims and claim adjustment expenses overall development | $ 8,830 | $ 1,200 | $ 17,268 | $ 2,825 |
Current year claims and claims adjustment expense | 53,834 | $ 50,543 | 147,064 | $ 116,839 |
United [Member] | ||||
Reserves For Losses And Loss Adjustment Expenses [Line Items] | ||||
Current year claims and claims adjustment expense | 19,830 | 43,330 | ||
United [Member] | TypTap [Member] | ||||
Reserves For Losses And Loss Adjustment Expenses [Line Items] | ||||
Current year claims and claims adjustment expense | 9,767 | 12,367 | ||
Accidental Year 2020 and Prior [Member] | ||||
Reserves For Losses And Loss Adjustment Expenses [Line Items] | ||||
Claims and claim adjustment expenses overall development | $ 8,830 | $ 17,268 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) - Segment | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Segment Reporting Information [Line Items] | |||||
Number of operating divisions | 4 | ||||
Sales Revenue, Net [Member] | Segment Concentration Risk [Member] | TypTap [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Concentration risk, percentage | 24.00% | 12.60% | 20.70% | 12.70% | |
Sales Revenue, Net [Member] | Segment Concentration Risk [Member] | HCPCI Insurance Operations [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Concentration risk, percentage | 73.90% | 59.10% | 76.40% | 73.80% | |
Assets [Member] | Segment Concentration Risk [Member] | TypTap [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Concentration risk, percentage | 26.30% | 16.70% | |||
Assets [Member] | Segment Concentration Risk [Member] | HCPCI Insurance Operations [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Concentration risk, percentage | 60.20% | 68.90% |
Segment Information - Summary o
Segment Information - Summary of Segment Information Reconciled to Consolidated Statements of Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Revenue: | ||||
Gross premiums earned | $ 149,809 | $ 106,694 | $ 420,191 | $ 306,862 |
Premiums ceded | (55,577) | (44,231) | (145,112) | (109,304) |
Net premiums earned | 94,232 | 62,463 | 275,079 | 197,558 |
Net income (loss) from investment portfolio | 1,883 | 3,279 | 14,052 | 1,435 |
Policy fee income | 1,000 | 895 | 2,962 | 2,571 |
Other | 2,102 | 37,390 | 3,502 | 38,560 |
Total revenue | 99,217 | 104,027 | 295,595 | 240,124 |
Expenses: | ||||
Losses and loss adjustment expenses | 62,664 | 51,743 | 164,332 | 119,664 |
Amortization of deferred policy acquisition costs | 21,652 | 13,969 | 64,447 | 36,325 |
Other policy acquisition expenses | 1,688 | 747 | 5,127 | 3,208 |
Interest expense | 1,664 | 2,856 | 5,743 | 8,846 |
Depreciation and amortization | 504 | 461 | 1,605 | 1,418 |
Debt conversion expense | 1,273 | 0 | 1,273 | 0 |
Loss on repurchases of convertible senior notes | 0 | 0 | 0 | (150) |
Loss on extinguishment of debt | 0 | 98 | 0 | 98 |
Personnel and other operating expenses | 16,276 | 12,617 | 44,373 | 36,399 |
Total expenses | 105,721 | 82,491 | 286,900 | 206,108 |
Income (loss) before income taxes | (6,504) | 21,536 | 8,695 | 34,016 |
Gross premiums written | 174,266 | 116,451 | 485,092 | 364,850 |
Operating Segments [Member] | HCPCI Insurance Operations [Member] | ||||
Revenue: | ||||
Gross premiums earned | 98,256 | 89,283 | 300,827 | 255,273 |
Premiums ceded | (36,955) | (36,503) | (104,236) | (93,466) |
Net premiums earned | 61,301 | 52,780 | 196,591 | 161,807 |
Net income (loss) from investment portfolio | 831 | 1,866 | 5,261 | 3,787 |
Policy fee income | 693 | 684 | 2,106 | 1,987 |
Other | 2,087 | 759 | 3,420 | 1,431 |
Total revenue | 64,912 | 56,089 | 207,378 | 169,012 |
Expenses: | ||||
Losses and loss adjustment expenses | 36,928 | 44,338 | 110,008 | 97,621 |
Amortization of deferred policy acquisition costs | 12,402 | 10,433 | 43,906 | 27,103 |
Other policy acquisition expenses | 633 | 160 | 2,170 | 1,789 |
Depreciation and amortization | 18 | 21 | 56 | 63 |
Personnel and other operating expenses | 5,896 | 5,896 | 17,317 | 16,161 |
Total expenses | 55,877 | 60,848 | 173,457 | 142,737 |
Income (loss) before income taxes | 9,035 | (4,759) | 33,921 | 26,275 |
Total revenue from non-affiliates | 65,629 | 55,227 | 206,743 | 167,891 |
Gross premiums written | 118,280 | 89,102 | 323,490 | 302,142 |
Operating Segments [Member] | Real Estate Operations [Member] | ||||
Revenue: | ||||
Net income (loss) from investment portfolio | 3 | |||
Other | 2,336 | 39,353 | 9,849 | 44,331 |
Total revenue | 2,336 | 39,353 | 9,849 | 44,334 |
Expenses: | ||||
Interest expense | 231 | 463 | 972 | 1,434 |
Depreciation and amortization | 576 | 567 | 1,737 | 1,862 |
Loss on extinguishment of debt | 98 | 98 | ||
Personnel and other operating expenses | 814 | 1,325 | 3,332 | 3,982 |
Total expenses | 1,621 | 2,453 | 6,041 | 7,376 |
Income (loss) before income taxes | 715 | 36,900 | 3,808 | 36,958 |
Total revenue from non-affiliates | 1,997 | 38,859 | 8,833 | 42,907 |
Operating Segments [Member] | Corporate and Other [Member] | ||||
Revenue: | ||||
Net income (loss) from investment portfolio | 172 | 1,340 | 4,059 | (1,714) |
Other | 489 | 290 | 1,316 | 1,695 |
Total revenue | 661 | 1,630 | 5,375 | (19) |
Expenses: | ||||
Interest expense | 1,432 | 2,631 | 4,950 | 8,090 |
Depreciation and amortization | 171 | 179 | 711 | 466 |
Debt conversion expense | 1,273 | 1,273 | ||
Loss on repurchases of convertible senior notes | 150 | |||
Personnel and other operating expenses | 3,734 | 3,428 | 8,901 | 10,548 |
Total expenses | 6,610 | 6,238 | 15,835 | 19,254 |
Income (loss) before income taxes | (5,949) | (4,608) | (10,460) | (19,273) |
Total revenue from non-affiliates | 402 | 1,208 | 4,641 | (996) |
Operating Segments [Member] | TypTap [Member] | ||||
Revenue: | ||||
Gross premiums earned | 51,553 | 19,854 | 119,364 | 54,829 |
Premiums ceded | (20,135) | (10,171) | (42,229) | (19,078) |
Net premiums earned | 31,418 | 9,683 | 77,135 | 35,751 |
Net income (loss) from investment portfolio | 102 | 363 | 933 | 383 |
Policy fee income | 307 | 211 | 856 | 584 |
Other | 480 | 24 | 1,130 | 87 |
Total revenue | 32,307 | 10,281 | 80,054 | 36,805 |
Expenses: | ||||
Losses and loss adjustment expenses | 24,224 | 7,405 | 52,976 | 22,043 |
Amortization of deferred policy acquisition costs | 9,250 | 3,536 | 20,541 | 9,222 |
Other policy acquisition expenses | 1,110 | 531 | 3,071 | 1,419 |
Interest expense | 1 | 91 | 1 | |
Depreciation and amortization | 342 | 279 | 942 | 820 |
Personnel and other operating expenses | 7,685 | 4,527 | 21,007 | 13,244 |
Total expenses | 42,612 | 16,278 | 98,628 | 46,749 |
Income (loss) before income taxes | (10,305) | (5,997) | (18,574) | (9,944) |
Total revenue from non-affiliates | 32,701 | 10,778 | 80,893 | 37,421 |
Gross premiums written | 55,987 | 27,349 | 161,602 | 62,708 |
Intersegment Eliminations [Member] | ||||
Revenue: | ||||
Gross premiums earned | (2,443) | (3,240) | ||
Premiums ceded | 1,513 | 2,443 | 1,353 | 3,240 |
Net premiums earned | 1,513 | 1,353 | ||
Net income (loss) from investment portfolio | 778 | (290) | 3,799 | (1,024) |
Other | (3,290) | (3,036) | (12,213) | (8,984) |
Total revenue | (999) | (3,326) | (7,061) | (10,008) |
Expenses: | ||||
Losses and loss adjustment expenses | 1,512 | 1,348 | ||
Other policy acquisition expenses | (55) | 56 | (114) | |
Interest expense | (238) | (270) | (679) | |
Depreciation and amortization | (603) | (585) | (1,841) | (1,793) |
Personnel and other operating expenses | (1,853) | (2,559) | (6,184) | (7,536) |
Total expenses | (999) | (3,326) | (7,061) | (10,008) |
Income (loss) before income taxes |
Segment Information - Summary_2
Segment Information - Summary of Segment Information Reconciled to Consolidated Statements of Income (Parenthetical) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Segment Reporting Information [Line Items] | ||||
Gross premiums earned | $ 149,809 | $ 106,694 | $ 420,191 | $ 306,862 |
Reinsurance [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Gross premiums earned | 2,443 | 3,240 | ||
HCPCI [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Gross premiums earned | $ 86,840 | $ 252,033 |
Segment Information - Summary_3
Segment Information - Summary of Segment Assets Reconciled to Consolidated Balance Sheet (Detail) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Segment Reporting Information [Line Items] | ||
Total assets | $ 1,076,114 | $ 941,313 |
Consolidation, Eliminations [Member] | ||
Segment Reporting Information [Line Items] | ||
Total assets | (26,592) | (22,273) |
HCPCI Insurance Operations [Member] | Operating Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
Total assets | 616,948 | 648,600 |
Real Estate Operations [Member] | Operating Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
Total assets | 129,198 | 128,383 |
Corporate and Other [Member] | Operating Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
Total assets | 61,629 | 29,022 |
TypTap [Member] | Operating Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
Total assets | $ 294,931 | $ 157,581 |
Leases - Summarizes of Right-of
Leases - Summarizes of Right-of-use Assets and Liabilities for Operating and Finance Leases (Detail) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Operating leases: | ||
ROU Assets | $ 2,576 | $ 4,002 |
Lease liabilities - operating leases | 2,578 | 4,014 |
Finance leases: | ||
ROU Assets | 86 | 79 |
Liabilities | $ 36 | $ 43 |
Leases - Summarizes the Company
Leases - Summarizes the Company's operating and finance leases in which the Company (Detail) | 9 Months Ended |
Sep. 30, 2021 | |
Office Equipment [Member] | |
Operating lease: | |
Renewal Option | Yes |
Office Equipment [Member] | Minimum [Member] | |
Operating lease: | |
Initial Term | 1 month |
Finance lease: | |
Initial Term | 3 years |
Office Equipment [Member] | Maximum [Member] | |
Operating lease: | |
Initial Term | 63 months |
Finance lease: | |
Initial Term | 5 years |
Office space [Member] | |
Operating lease: | |
Renewal Option | Yes |
Office space [Member] | Minimum [Member] | |
Operating lease: | |
Initial Term | 3 years |
Office space [Member] | Maximum [Member] | |
Operating lease: | |
Initial Term | 10 years |
Leases - Maturities of lease li
Leases - Maturities of lease liabilities (Detail) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
2021 | $ 1,464 | |
2022 | 1,188 | |
2023 | 0 | |
Total lease payments | 2,652 | |
Less: interest and foreign taxes | 74 | |
Total lease obligations | 2,578 | $ 4,014 |
2021 | 20 | |
2022 | 15 | |
2023 | 2 | |
Total lease payments | 37 | |
Less: interest and foreign taxes | 1 | |
Total lease obligations | $ 36 | $ 43 |
Leases -The Company's operating
Leases -The Company's operating and finance leases (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Finance lease costs: | ||||
Amortization - ROU assets | $ 4 | $ 4 | $ 13 | $ 13 |
Interest expense | 0 | 1 | 1 | 2 |
Operating lease costs | 386 | 404 | 1,231 | 560 |
Short-term lease costs | 100 | 44 | 250 | 135 |
Total lease costs | $ 490 | $ 453 | 1,495 | 710 |
Cash paid for amounts included in the measurement of lease liabilities: | ||||
Operating cash flows – finance leases | 1 | 1 | ||
Operating cash flows – operating leases | 1,237 | 566 | ||
Financing cash flows – finance leases | $ 14 | $ 13 | ||
Weighted-average remaining lease term: | ||||
Finance leases (in years) | 3 years | 3 years | ||
Operating leases (in years) | 2 years 7 months 6 days | 2 years 7 months 6 days | ||
Weighted-average discount rate: | ||||
Finance leases | 3.50% | 3.50% | ||
Operating leases | 2.80% | 2.80% |
Leases - Summarizes the Compa_2
Leases - Summarizes the Company's operating leases (Detail) | 9 Months Ended |
Sep. 30, 2021 | |
Office space [Member] | |
Operating lease: | |
Renewal Option | Yes |
Office space [Member] | Minimum [Member] | |
Operating lease: | |
Initial Term | 1 year |
Office space [Member] | Maximum [Member] | |
Operating lease: | |
Initial Term | 3 years |
Retail space [Member] | |
Operating lease: | |
Renewal Option | Yes |
Retail space [Member] | Minimum [Member] | |
Operating lease: | |
Initial Term | 3 years |
Retail space [Member] | Maximum [Member] | |
Operating lease: | |
Initial Term | 20 years |
Boat docks/wet slips [Member] | |
Operating lease: | |
Renewal Option | Yes |
Boat docks/wet slips [Member] | Minimum [Member] | |
Operating lease: | |
Initial Term | 1 month |
Boat docks/wet slips [Member] | Maximum [Member] | |
Operating lease: | |
Initial Term | 12 months |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | ||||
Income tax expense (benefit) | $ (1,636) | $ 6,146 | $ 2,888 | $ 9,143 |
Effective tax rate | 25.20% | 28.50% | 33.20% | 26.90% |
Earnings Per Share - Summary of
Earnings Per Share - Summary of Numerator and Denominator of Basic and Fully Diluted Earnings Per Common Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||
Net (loss) income | $ (4,868) | $ 15,390 | $ 5,807 | $ 24,873 |
Less: Net income attributable to redeemable noncontrolling interest | (2,202) | 0 | (5,175) | 0 |
Less: TypTap Group's net loss attributable to non-HCI common stockholders and TypTap Group's participating securities | 774 | 1,191 | ||
Net (loss) income attributable to HCI | (6,296) | 15,390 | 1,823 | 24,873 |
Less: Loss (income) attributable to participating securities | 537 | (865) | (37) | (1,309) |
Basic Earnings Per Share: | ||||
(Loss) income allocated to common stockholders, Income (Numerator) | $ (5,759) | $ 14,525 | $ 1,786 | $ 23,564 |
(Loss) income allocated to common stockholders, Shares (Denominator) | 8,023 | 7,356 | 7,676 | 7,350 |
(Loss) income allocated to common stockholders, Per Share Amount | $ (0.72) | $ 1.97 | $ 0.23 | $ 3.21 |
Diluted Earnings Per Share: | ||||
(Loss) income available to common stockholders and assumed conversions, Income (Numerator) | $ (5,759) | $ 16,428 | $ 1,786 | $ 29,351 |
(Loss) income available to common stockholders and assumed conversions, Shares (Denominator) | 8,023 | 9,677 | 8,092 | 9,697 |
(Loss) income available to common stockholders and assumed conversions, Per Share Amount | $ (0.72) | $ 1.70 | $ 0.22 | $ 3.03 |
Warrant [Member] | ||||
Effect of Dilutive Securities: | ||||
Dilutive Securities, Income (Loss) (Numerator) | $ 0 | |||
Dilutive Securities, Shares (Denominator) | 234 | |||
Convertible Senior Notes [Member] | ||||
Effect of Dilutive Securities: | ||||
Dilutive Securities, Income (Loss) (Numerator) | $ 0 | $ 1,903 | $ 0 | $ 5,787 |
Dilutive Securities, Shares (Denominator) | 0 | 2,284 | 0 | 2,330 |
Stock Options [Member] | ||||
Effect of Dilutive Securities: | ||||
Dilutive Securities, Income (Loss) (Numerator) | $ 0 | $ 0 | ||
Dilutive Securities, Shares (Denominator) | 0 | 37 | 182 | 17 |
Redeemable Noncontrolling Int_3
Redeemable Noncontrolling Interest - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | Feb. 26, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 |
Temporary Equity [Line Items] | |||||||
Preferred stock voting shares issued | 9,000,000 | ||||||
Preferred stock non-voting shares issued | 1,000,000 | ||||||
Preferred stock par value | $ 0.001 | ||||||
Preferred stock issued price per share | $ 10 | ||||||
Proceeds from issuance of preferred stock | $ 100,000 | ||||||
Stock issuance costs | $ 6,262 | ||||||
Warrant to purchase shares | 750,000 | 750,000 | 750,000 | ||||
Exercise price | $ 54.40 | ||||||
Estimated fair value of warrants | $ 9,217 | ||||||
Estimated fair value per warrant | $ 12.29 | ||||||
Net income attributable to redeemable noncontrolling interest | $ 2,202 | $ 0 | $ 5,175 | $ 0 | |||
Accrued cash dividends | 1,250 | $ 1,250 | $ 458 | 2,958 | |||
Accretion - increasing dividend rates | $ 952 | $ 929 | $ 336 | $ 2,217 | |||
TTIG [Member] | |||||||
Temporary Equity [Line Items] | |||||||
Cash dividend rates in Year 1 | 0.50 | ||||||
Cash dividend rates in Year 2 | 0.60 | ||||||
Cash dividend rates in Year 3 | 0.75 | ||||||
Cash dividend rates in Year 4 and thereafter | 0.95 | ||||||
Paid-in-kind in Year 1 | 0.60 | ||||||
Paid-in-kind in Year 2 | $ 0.70 | ||||||
Minimum percentage of original purchase price of shares required for automatic conversion of preferred stock | 150.00% | ||||||
TTIG [Member] | Minimum [Member] | |||||||
Temporary Equity [Line Items] | |||||||
Gross proceeds from issuance of common stock | $ 250,000 | ||||||
Additional common stock issue price per share | $ 10 | ||||||
TTIG [Member] | Series A Preferred Stock [Member] | |||||||
Temporary Equity [Line Items] | |||||||
Initial conversion rate | 100.00% | ||||||
TTIG [Member] | Series A Preferred Stock [Member] | Minimum [Member] | |||||||
Temporary Equity [Line Items] | |||||||
Preferred stock issued price per share | $ 10 |
Redeemable Noncontrolling Int_4
Redeemable Noncontrolling Interest - Summary of Activity of Redeemable Noncontrolling Interest (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | |
Temporary Equity Carrying Amount Including Portion Attributable To Noncontrolling Interests [Abstract] | |||||
Beginning Balance | $ 88,071 | $ 85,892 | $ 0 | $ 0 | |
Initial proceeds from Centerbridge | 100,000 | ||||
Increase (decrease): | |||||
Proceeds allocated to warrants | (9,217) | ||||
Issuance costs | (6,262) | ||||
Issuance costs allocated to warrants | 577 | ||||
Cash dividends paid to redeemable non-controlling interest | (2,542) | 2,542 | $ 0 | ||
Accrued cash dividends | 1,250 | 1,250 | 458 | 2,958 | |
Accretion - increasing dividend rates | 952 | 929 | 336 | 2,217 | |
Ending Balance | $ 87,731 | $ 88,071 | $ 85,892 | $ 87,731 |
Redeemable Noncontrolling Int_5
Redeemable Noncontrolling Interest - Summary of Activity of Redeemable Noncontrolling Interest (Parenthetical) (Detail) $ in Thousands | 9 Months Ended |
Sep. 30, 2021USD ($) | |
Temporary Equity Carrying Amount Including Portion Attributable To Noncontrolling Interests [Abstract] | |
Net decrease related to warrants | $ 8,640 |
Equity (Common Stock) - Additio
Equity (Common Stock) - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | Jul. 07, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 |
Class of Stock [Line Items] | ||||
Stock repurchased and retired, total costs | $ 12 | $ 1,308 | $ 1,338 | |
Dividends per common share | $ 0.40 | |||
Dividends, date of declared | Jul. 7, 2021 | |||
Dividends, date of record | Aug. 20, 2021 | |||
Dividends, date of paid | Sep. 17, 2021 | |||
Share Repurchase Plan [Member] | ||||
Class of Stock [Line Items] | ||||
Common stock repurchase authorized amount | $ 20,000 | $ 20,000 | ||
Repurchase and retirement of common stock, shares | 129,142 | |||
Common stock repurchased and retired, weighted average price, excluding fees and commissions | $ 43.76 | $ 39.93 | ||
Stock repurchased and retired, total costs | $ 20 | $ 5,161 | ||
Common stock repurchased and retired, weighted average price, including fees and commissions | $ 43.79 | $ 39.96 | ||
Common Stock [Member] | ||||
Class of Stock [Line Items] | ||||
Repurchase and retirement of common stock, shares | 225 | 17,193 | 29,698 | |
Common Stock [Member] | Share Repurchase Plan [Member] | ||||
Class of Stock [Line Items] | ||||
Repurchase and retirement of common stock, shares | 457 | 129,142 |
Equity (Warrants) - Additional
Equity (Warrants) - Additional Information (Detail) - shares | Sep. 30, 2021 | Feb. 26, 2021 |
Equity [Abstract] | ||
Warrants | 750,000 | 750,000 |
Equity (Noncontrolling Interest
Equity (Noncontrolling Interest) - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
May 31, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Feb. 28, 2021 | Dec. 31, 2020 | |
Class of Stock [Line Items] | ||||||
Common stock shares authorized to issue | 40,000,000 | 40,000,000 | ||||
Common stock, outstanding | 9,591,079 | 7,785,617 | ||||
Purchase of noncontrolling interests | $ (58) | $ (58) | $ 0 | |||
Common Stock [Member] | ||||||
Class of Stock [Line Items] | ||||||
Repurchase and retirement of common stock, shares | 225 | 17,193 | 29,698 | |||
TTIG [Member] | ||||||
Class of Stock [Line Items] | ||||||
Common stock shares authorized to issue | 183,000,000 | |||||
Common stock, par value per share | $ 0.001 | |||||
Preferred stock shares authorized to issue | 37,502,000 | |||||
Common stock, outstanding | 81,278,175 | |||||
Common stock shares outstanding not owned by entity | 6,278,175 | |||||
TTIG [Member] | Common Stock [Member] | ||||||
Class of Stock [Line Items] | ||||||
Repurchase and retirement of common stock, shares | 52,015 | |||||
TTIG [Member] | Series A Preferred Stock [Member] | ||||||
Class of Stock [Line Items] | ||||||
Preferred stock shares issued | 10,000,000 |
Stock-Based Compensation (2012
Stock-Based Compensation (2012 Omnibus Incentive Plan) - Additional Information (Detail) | Sep. 30, 2021shares |
2012 Omnibus Incentive Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Common shares available for grant | 1,117,275 |
Stock-Based Compensation (Stock
Stock-Based Compensation (Stock Options) - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock options exercisable contractual term | 10 years | ||||
Stock Options [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Recognized compensation expenses | $ 221 | $ 300 | $ 663 | $ 880 | |
Deferred tax benefits recognized | 3 | $ 19 | 4 | $ 57 | |
Unrecognized compensation expense related to nonvested stock options | $ 1,226 | $ 1,226 | $ 1,889 | ||
Recognition of remaining compensation expense over a weighted-average period | 1 year 9 months 18 days | ||||
Maximum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock options maximum vesting period | 5 years |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Company's Stock Option Plan Activity (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||||||
Sep. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding [Roll Forward] | ||||||||||
Outstanding, Beginning Balance, Number of Options | 440,000 | 440,000 | 440,000 | 340,000 | 440,000 | 340,000 | 440,000 | 340,000 | 340,000 | |
Granted, Number of options | 110,000 | |||||||||
Exercised, Number of Options | (10,000) | (10,000) | ||||||||
Outstanding, Ending Balance, Number of Options | 440,000 | 440,000 | 440,000 | 440,000 | 440,000 | 440,000 | 440,000 | 440,000 | 440,000 | 340,000 |
Exercisable, Number of Options | 275,000 | 165,000 | 275,000 | 165,000 | ||||||
Outstanding, Beginning Balance, Weighted Average Exercise Price | $ 45.25 | $ 45.25 | $ 45.25 | $ 43.21 | $ 45.25 | $ 43.21 | $ 45.25 | $ 43.21 | $ 43.21 | |
Granted, Weighted Average Exercise Price | 48 | |||||||||
Exercised, Weighted Average Exercise Price | 6.30 | |||||||||
Outstanding, Ending Balance, Weighted Average Exercise Price | 45.25 | $ 45.25 | 45.25 | $ 45.25 | $ 45.25 | $ 45.25 | 45.25 | 45.25 | $ 45.25 | $ 43.21 |
Exercisable, Weighted-Average Exercise Price | $ 43.40 | $ 42.17 | $ 43.40 | $ 42.17 | ||||||
Outstanding, Weighted-Average Remaining Contractual Term | 7 years 3 months 18 days | 8 years 3 months 18 days | 7 years 1 month 6 days | 8 years 1 month 6 days | 6 years 9 months 18 days | 7 years 9 months 18 days | 7 years 7 months 6 days | 7 years 10 months 24 days | ||
Exercisable, Weighted-Average Remaining Contractual Term | 6 years 3 months 18 days | 7 years | ||||||||
Outstanding, Aggregate Intrinsic Value | $ 29,238 | $ 13,464 | $ 2,321 | $ 23,883 | $ 1,184 | $ 29,238 | $ 2,321 | $ 3,113 | $ 1,657 | |
Exercisable, Aggregate Intrinsic Value | $ 18,782 | $ 1,334 | $ 18,782 | $ 1,334 |
Stock-Based Compensation - Info
Stock-Based Compensation - Information about Options Exercised (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Share Based Compensation Arrangement By Share Based Payment Award Options Activity [Abstract] | |||||
Options exercised | 10,000 | 10,000 | |||
Total intrinsic value of exercised options | $ 288 | ||||
Tax benefits realized | $ 71 |
Stock-Based Compensation - Assu
Stock-Based Compensation - Assumptions Used to Estimate the Fair Value of Stock Options Granted (Detail) | 9 Months Ended |
Sep. 30, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Expected dividend yield | 3.48% |
Expected volatility | 38.68% |
Risk-free interest rate | 1.63% |
Expected life (in years) | 5 years |
Stock Based Compensation - Info
Stock Based Compensation - Information with Respect to Unvested Restricted Stock Awards Stock Option and Incentive Plan (Detail) - Restricted Stock [Member] - $ / shares | 1 Months Ended | 3 Months Ended | |||||
Feb. 28, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Beginning balance, shares | 711,212 | 786,973 | 423,787 | 438,226 | 403,372 | 396,760 | |
Granted, Number of Restricted Stock Awards | 2,340 | 3,000 | 548,086 | 2,680 | 145,000 | 45,000 | |
Vested, Number of Restricted Stock Awards | (68,541) | (41,250) | (625) | (104,926) | (31,250) | ||
Cancelled, Number of Restricted Stock Awards | (141,600) | 1,160 | 141,600 | ||||
Forfeited, Number of Restricted Stock Awards | (38,855) | (9,060) | (2,050) | (2,369) | (5,220) | (7,138) | |
Ending balance, shares | 674,697 | 711,212 | 786,973 | 437,912 | 438,226 | 403,372 | |
Nonvested, Weighted-Average Grant Date Fair Value, Beginning balance | $ 38.71 | $ 39.11 | $ 43.79 | $ 43.48 | $ 42.12 | $ 41.71 | |
Granted, Weighted-Average Grant Date Fair Value | 96.60 | 76 | 36.95 | 54.36 | 45.59 | 44.97 | |
Vested, Weighted-Average Grant Date Fair Value | 43.80 | 42.18 | 41.02 | 41.16 | 40.97 | ||
Cancelled, Weighted-Average Grant Date Fair Value | 45.96 | 43.76 | |||||
Forfeited, Weighted-Average Grant Date Fair Value | 38.05 | 46.44 | 45.67 | 45.60 | 43.75 | 42.60 | |
Nonvested, Weighted-Average Grant Date Fair Value, Ending balance | $ 38.95 | $ 38.71 | $ 39.11 | $ 43.54 | $ 43.48 | $ 42.12 |
Stock-Based Compensation (Restr
Stock-Based Compensation (Restricted Stock Awards) - Additional Information (Detail) - Restricted Stock [Member] - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||||
Feb. 28, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Recognized compensation expenses | $ 2,039 | $ 1,862 | $ 6,280 | $ 5,142 | ||||
Total unrecognized compensation expense, Nonvested restricted stock arrangements granted | $ 21,628 | $ 21,628 | $ 13,666 | |||||
Recognition of remaining compensation expense over a weighted-average period | 2 years 10 months 24 days | |||||||
Number of cancelled shares | 141,600 | (1,160) | (141,600) |
Stock-Based Compensation - In_2
Stock-Based Compensation - Information about Deferred Tax Benefits Recognized Related to Restricted Stock Awards, Paid Dividends and the Fair Value of Vested Restricted Stock (Detail) - Restricted Stock [Member] - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Deferred tax benefits recognized | $ 420 | $ 353 | $ 879 | $ 956 |
Tax benefits realized for restricted stock and paid dividends | 70 | 47 | 1,482 | 1,286 |
Fair value of vested restricted stock | $ 26 | $ 4,742 | $ 5,625 |
Stock-Based Compensation (Subsi
Stock-Based Compensation (Subsidiary Equity Plan) - Additional Information (Detail) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||||||||
Feb. 28, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 27, 2021 | Feb. 26, 2021 | Dec. 31, 2020 | |
Restricted Stock [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Number of shares issued | 2,340 | 3,000 | 548,086 | 2,680 | 145,000 | 45,000 | ||||||
Recognized compensation expenses | $ 2,039 | $ 1,862 | $ 6,280 | $ 5,142 | ||||||||
Total unrecognized compensation expense, Nonvested restricted stock arrangements granted | 21,628 | 21,628 | $ 13,666 | |||||||||
TTIG [Member] | Restricted Stock [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Number of shares issued | 5,749,300 | |||||||||||
Recognized compensation expenses | 472 | 2,286 | ||||||||||
Total unrecognized compensation expense, Nonvested restricted stock arrangements granted | $ 4,846 | $ 4,846 | ||||||||||
TTIG [Member] | 2021 Equity Incentive Plan [Member] | Employees and Nonemployee Directors [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Maximum number of shares issuable | 7,000,000 | |||||||||||
TTIG [Member] | 2021 Omnibus Incentive Plan [Member] | Employees and Nonemployee Directors [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Maximum number of shares issuable | 7,700,000 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021USD ($)Reinsurance | Dec. 31, 2020USD ($) | |
Commitments And Contingencies Disclosure [Abstract] | ||
Number of multi-year reinsurance contracts | Reinsurance | 2 | |
Unfunded Balance | $ | $ 13,980 | $ 10,304 |
Commitments and Contingencies_2
Commitments and Contingencies - Schedule of Future Minimum Aggregate Premium Amounts Payable to Reinsurer (Detail) $ in Thousands | Sep. 30, 2021USD ($) |
Contractual Obligation Fiscal Year Maturity [Abstract] | |
2021 | $ 9,095 |
2022* | 9,095 |
2023* | 4,093 |
Total | $ 22,283 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - Revolving Credit Facility [Member] - USD ($) $ in Thousands | Sep. 30, 2021 | Feb. 12, 2021 |
Related Party Transaction [Line Items] | ||
Credit facility, borrowing capacity | $ 65,000 | |
TTIG [Member] | ||
Related Party Transaction [Line Items] | ||
Credit facility, borrowing capacity | $ 60,000 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | Oct. 15, 2021 | Oct. 05, 2021 | Oct. 01, 2021 | Jul. 07, 2021 | Nov. 30, 2021 | Oct. 31, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2021 | Sep. 30, 2020 |
Subsequent Event [Line Items] | |||||||||||
Granted, Number of options | 110,000 | ||||||||||
Granted, Weighted Average Exercise Price | $ 48 | ||||||||||
Dividends per common share | $ 0.40 | ||||||||||
Dividends, date of declared | Jul. 7, 2021 | ||||||||||
Dividends, date of record | Aug. 20, 2021 | ||||||||||
Dividends, date of paid | Sep. 17, 2021 | ||||||||||
Conversion note interest rate | 4.25% | 4.25% | |||||||||
Convertible notes cash consideration | $ 1,414 | $ 0 | |||||||||
Debt conversion expense | $ 1,273 | $ 0 | $ 1,273 | $ 0 | |||||||
Forecast [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Number of stock issued upon conversion of convertible note | 71,464 | ||||||||||
Forecast [Member] | 4.25% Convertible Notes [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Convertible note conversion amount | $ 4,340 | ||||||||||
Subsequent Event [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Dividends per common share | $ 0.40 | ||||||||||
Dividends, date of declared | Oct. 15, 2021 | ||||||||||
Dividends, date of record | Nov. 19, 2021 | ||||||||||
Dividends, date of paid | Dec. 17, 2021 | ||||||||||
Number of stock issued upon conversion of convertible note | 458,533 | ||||||||||
Convertible notes cash consideration | $ 481 | ||||||||||
Debt conversion expense | $ 481 | ||||||||||
Percentage of FIGA Assessment levied on Collected Premium | 0.70% | ||||||||||
Subsequent Event [Member] | Market-Based Restricted Stock [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Unrecognized balance | $ 7,130 | ||||||||||
Recognition of remaining compensation expense over a weighted-average period | 12 months | ||||||||||
Subsequent Event [Member] | 4.25% Convertible Notes [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Convertible note conversion amount | $ 27,846 | ||||||||||
Conversion note interest rate | 4.25% | ||||||||||
Subsequent Event [Member] | TTIG's 2021 Omnibus Incentive Plan | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Granted, Number of options | 6,450,000 | ||||||||||
Granted, Weighted Average Exercise Price | $ 23 | ||||||||||
Granted , Terms | 10-year | ||||||||||
Granted option vesting period term | 4 years |