Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Mar. 02, 2023 | Jun. 30, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2022 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | HCI | ||
Entity Registrant Name | HCI Group, Inc. | ||
Entity Central Index Key | 0001400810 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity 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 Annual Report | true | ||
Document Transition Report | false | ||
Entity Common Stock, Shares Outstanding | 8,596,873 | ||
Entity Public Float | $ 486,709,703 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
ICFR Auditor Attestation Flag | true | ||
Documents Incorporated by Reference | The information required by Part III of this Form 10-K is incorporated by reference from the registrant’s definitive proxy statement which will be filed not later than 120 days after the end of the fiscal year covered by this Form 10-K. | ||
Auditor Name | FORVIS, LLP | ||
Auditor Location | Tampa, Florida | ||
Auditor Firm ID | 686 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | |
Assets | |||
Fixed-maturity securities, available for sale, at fair value | $ 483,901 | $ 42,583 | |
Equity securities, at fair value | 34,583 | 51,740 | |
Limited partnership investments | 25,702 | 28,133 | |
Investment in unconsolidated joint venture, at equity | [1] | 18 | 363 |
Real estate investments | 71,388 | 73,896 | |
Total investments | 615,592 | 196,715 | |
Cash and cash equivalents | 234,863 | 628,943 | |
Restricted cash | 2,900 | 2,400 | |
Accrued interest and dividends receivable | 1,952 | 353 | |
Income taxes receivable | 2,807 | 4,084 | |
Premiums receivable, net (allowance: $5,362 and $1,750, respectively) | 34,998 | 68,157 | |
Prepaid reinsurance premiums | 66,627 | 26,355 | |
Reinsurance recoverable, net of allowance for credit losses: | |||
Paid losses and loss adjustment expenses (allowance: $0 and $0, respectively) | 71,594 | 11,985 | |
Unpaid losses and loss adjustment expenses (allowance: $454 and $90, respectively) | 616,765 | 64,665 | |
Deferred policy acquisition costs | 45,522 | 57,695 | |
Property and equipment, net | 17,910 | 14,232 | |
Right-of-use assets - operating leases | 777 | 2,204 | |
Intangible assets, net | 10,578 | 10,636 | |
Funds withheld for assumed business | 48,772 | 73,716 | |
Other assets | 31,671 | 14,717 | |
Total assets | 1,803,328 | 1,176,857 | |
Liabilities and Equity | |||
Losses and loss adjustment expenses | 863,765 | 237,165 | |
Unearned premiums | 368,047 | 366,744 | |
Advance premiums | 18,587 | 13,771 | |
Reinsurance payable on paid losses and loss adjustment expenses | 8,606 | 4,017 | |
Ceded reinsurance premiums payable | 17,646 | 19,318 | |
Accrued expenses | 14,534 | 15,453 | |
Reinsurance recovered in advance on unpaid losses | 19,863 | 0 | |
Deferred income taxes, net | 1,704 | 11,739 | |
Revolving credit facility | 0 | 15,000 | |
Long-term debt | 211,687 | 45,504 | |
Lease liabilities - operating leases | 721 | 2,203 | |
Other liabilities | 23,361 | 31,485 | |
Total liabilities | 1,548,521 | 762,399 | |
Commitments and contingencies (Note 23) | |||
Redeemable noncontrolling interest (Note 19) | 93,553 | 89,955 | |
Equity: | |||
Common stock (no par value, 40,000,000 shares authorized, 8,598,682 and 10,131,399 shares issued and outstanding in 2022 and 2021, respectively) | 0 | 0 | |
Additional paid-in capital | 0 | 76,077 | |
Retained income | 172,482 | 246,790 | |
Accumulated other comprehensive (loss) income, net of taxes | (9,886) | 498 | |
Total stockholders’ equity | 162,596 | 323,365 | |
Noncontrolling interests | (1,342) | 1,138 | |
Total equity | 161,254 | 324,503 | |
Total liabilities, redeemable noncontrolling interest and equity | $ 1,803,328 | $ 1,176,857 | |
[1] Includes the 90 % share of FMKT Mel JV’s operating results. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Available-for-sale Debt securities, Amortized cost | $ 494,197 | $ 41,953 |
Available-for-sale Debt securities, Allowance for credit losses | 0 | 0 |
Equity Securities, Cost | 36,272 | 46,276 |
Premiums Receivable, Allowance | 5,362 | 1,750 |
Paid losses and loss adjustments allowance | 0 | 0 |
Unpaid losses and loss adjustments allowance | $ 454 | $ 90 |
Common stock, no par value | $ 0 | $ 0 |
Common stock, shares authorized | 40,000,000 | 40,000,000 |
Common stock, shares issued | 8,598,682 | 10,131,399 |
Common stock, outstanding | 8,598,682 | 10,131,399 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||||
Revenue | ||||||
Gross premiums earned | $ 724,716 | [1] | $ 577,044 | [2] | $ 415,918 | [3] |
Premiums ceded | (261,144) | (199,741) | (153,458) | |||
Net premiums earned | 463,572 | 377,303 | 262,460 | |||
Net investment income | 32,447 | 12,335 | 4,564 | |||
Net realized investment (losses) gains | (1,187) | 6,472 | 1,000 | |||
Net unrealized investment (losses) gains | (7,153) | 1,363 | 679 | |||
Credit losses on investments | 0 | 0 | (611) | |||
Policy fee income | 4,279 | 3,995 | 3,522 | |||
Gain on involuntary conversion | 0 | 0 | 36,969 | |||
Gain from remeasurement of contingent liabilities | 3,117 | 0 | 0 | |||
Other | 4,488 | 6,447 | 1,854 | |||
Total revenue | 499,563 | 407,915 | 310,437 | |||
Expenses | ||||||
Losses and loss adjustment expenses | 371,463 | 227,525 | 160,036 | |||
Policy acquisition and other underwriting expenses | 104,977 | 93,732 | 53,859 | |||
General and administrative personnel expenses | 56,511 | 45,428 | 33,829 | |||
Interest expense | 7,768 | 6,400 | 11,734 | |||
Impairment loss | 2,284 | 0 | 0 | |||
Loss on repurchases of convertible senior notes | 0 | 0 | 150 | |||
Loss on extinguishment of debt | 0 | 0 | 98 | |||
Debt conversion expense | 0 | 1,754 | 0 | |||
Other operating expenses | 24,978 | 21,843 | 13,803 | |||
Total expenses | 567,981 | 396,682 | 273,509 | |||
(Loss) income before income taxes | (68,418) | 11,233 | 36,928 | |||
Income tax (benefit) expense | (13,815) | 3,991 | 9,348 | |||
Net (loss) income | (54,603) | 7,242 | 27,580 | |||
Net income attributable to redeemable noncontrolling interest (Note 19) | (9,106) | (7,399) | 0 | |||
Net loss attributable to noncontrolling interests | 5,198 | 2,013 | 0 | |||
Net (loss) income after noncontrolling interests | $ (58,511) | $ 1,856 | $ 27,580 | |||
Basic (loss) earnings per share | $ (6.24) | $ 0.23 | $ 3.55 | |||
Diluted (loss) earnings per share | $ (6.24) | $ 0.21 | $ 3.49 | |||
[1] Gross premiums earned under HCPCI Insurance Operations consist of $ 426,501 from HCPCI and $ 12,998 from a reinsurance company. Gross premiums earned under HCPCI Insurance Operations consist of $ 401,137 from HCPCI and $ 3,225 from a reinsurance company. Gross premiums earned under HCPCI Insurance Operations consist of $ 337,082 from HCPCI and $ 5,682 from a reinsurance company. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | |||
Net (loss) income | $ (54,603) | $ 7,242 | $ 27,580 |
Change in unrealized loss on investments: | |||
Net unrealized (losses) gains arising during the period | (11,355) | (692) | 86 |
Credit losses charged to income | 0 | 0 | 611 |
Call and repayment gains charged to investment income | 0 | (36) | (374) |
Reclassification adjustment for net realized losses (gains) | 429 | (687) | (1,163) |
Net change in unrealized losses | (10,926) | (1,415) | (840) |
Deferred income taxes on above change | 154 | 347 | 206 |
Total other comprehensive loss, net of income taxes | (10,772) | (1,068) | (634) |
Comprehensive (loss) income | (65,375) | 6,174 | 26,946 |
Comprehensive loss attributable to noncontrolling interests | 5,586 | 2,035 | 0 |
Comprehensive (loss) income after noncontrolling interests | $ (59,789) | $ 8,209 | $ 26,946 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-In Capital [Member] | Retained Income [Member] | Accumulated Other Comprehensive (Loss) Income, Net of Tax [Member] | Parent [Member] | Noncontrolling Interest [Member] |
Beginning Balance at Dec. 31, 2019 | $ 185,543 | $ 183,365 | $ 2,178 | ||||
Beginning Balance, shares at Dec. 31, 2019 | 7,764,564 | ||||||
Net income (loss) | 27,580 | 27,580 | |||||
Net income attributable to redeemable noncontrolling interest (Note 19) | 0 | ||||||
Cumulative effect of change in accounting principle | (453) | (453) | |||||
Total other comprehensive loss, net of income taxes | (634) | (634) | |||||
Exercise of common stock options, value | $ 63 | $ 63 | |||||
Exercise of common stock options, shares | 10,000 | 10,000 | |||||
Issuance of common stock, value | $ 0 | ||||||
Issuance of restricted stock, shares | 192,680 | ||||||
Forfeiture of restricted stock, shares | (18,852) | ||||||
Repurchase and retirement of common stock, value | (1,547) | (1,547) | |||||
Repurchase and retirement of common stock, shares | (33,633) | ||||||
Repurchase and retirement of common stock under share repurchase plan, shares | (129,142) | ||||||
Repurchase and retirement of common stock under share repurchase plan, value | (5,161) | (5,161) | |||||
Common stock issued on conversions of 4.25% senior notes | 0 | ||||||
Common stock dividends ($1.60 per share) | (12,388) | (12,388) | |||||
Stock-based compensation | 8,133 | 8,133 | |||||
Additional paid-in capital shortfall allocated to retained income | (1,488) | 1,488 | |||||
Ending Balance at Dec. 31, 2020 | 201,136 | 199,592 | 1,544 | ||||
Ending Balance, shares at Dec. 31, 2020 | 7,785,617 | ||||||
Ending Balance at Dec. 31, 2020 | 201,136 | 199,592 | 1,544 | $ 201,136 | |||
Net income (loss) | 7,242 | 8,779 | 8,779 | $ (1,537) | |||
Net income attributable to redeemable noncontrolling interest (Note 19) | (7,399) | (6,923) | (6,923) | (476) | |||
Cumulative effect of change in accounting principle | (3,018) | (3,018) | (3,018) | ||||
Total other comprehensive loss, net of income taxes | $ (1,068) | (1,046) | (1,046) | (22) | |||
Exercise of common stock options, shares | 0 | ||||||
Issuance of common stock, shares | 100,000 | 100,000 | |||||
Issuance of common stock, value | $ 5,410 | 5,410 | 5,410 | ||||
Issuance of restricted stock, shares | 564,426 | ||||||
Forfeiture of restricted stock, shares | (55,665) | ||||||
Cancellation of restricted stock, shares | (142,760) | ||||||
Repurchase and retirement of common stock, value | (1,308) | (1,308) | (1,308) | ||||
Repurchase and retirement of common stock, shares | (17,193) | ||||||
Common stock issued on conversions of 4.25% senior notes, shares | 1,896,974 | ||||||
Common stock issued on conversions of 4.25% senior notes | 114,928 | 114,928 | 114,928 | ||||
Dilution from subsidiary stock-based compensation | 3,173 | 3,173 | |||||
Issuance of warrants, net of issuance costs (Note 19) | 8,640 | 8,640 | 8,640 | ||||
Common stock dividends ($1.60 per share) | (13,759) | (13,759) | (13,759) | ||||
Stock-based compensation | 10,526 | 10,526 | 10,526 | ||||
Additional paid-in capital shortfall allocated to retained income | (62,119) | 62,119 | |||||
Ending Balance at Dec. 31, 2021 | 323,365 | ||||||
Ending Balance, shares at Dec. 31, 2021 | 10,131,399 | ||||||
Ending Balance at Dec. 31, 2021 | 324,503 | 76,077 | 246,790 | 498 | 323,365 | 1,138 | |
Net income (loss) | (54,603) | (50,097) | (50,097) | (4,506) | |||
Net income attributable to redeemable noncontrolling interest (Note 19) | (9,106) | (8,414) | (8,414) | (692) | |||
Total other comprehensive loss, net of income taxes | $ (10,772) | (10,384) | (10,384) | (388) | |||
Exercise of common stock options, shares | 0 | ||||||
Issuance of common stock, value | $ 0 | ||||||
Issuance of restricted stock, shares | 7,000 | ||||||
Forfeiture of restricted stock, shares | (11,230) | ||||||
Repurchase and retirement of common stock, value | (71,242) | (71,242) | (71,242) | ||||
Repurchase and retirement of common stock, shares | (1,137,336) | ||||||
Repurchase and retirement of common stock under share repurchase plan, shares | (391,151) | ||||||
Repurchase and retirement of common stock under share repurchase plan, value | (17,070) | (17,070) | (17,070) | ||||
Common stock issued on conversions of 4.25% senior notes | 0 | ||||||
Dilution from subsidiary stock-based compensation | 3,106 | 3,106 | |||||
Common stock dividends ($1.60 per share) | (15,157) | (15,157) | (15,157) | ||||
Stock-based compensation | 11,595 | 11,595 | 11,595 | ||||
Additional paid-in capital shortfall allocated to retained income | $ 640 | (640) | |||||
Ending Balance at Dec. 31, 2022 | 162,596 | ||||||
Ending Balance, shares at Dec. 31, 2022 | 8,598,682 | ||||||
Ending Balance at Dec. 31, 2022 | $ 161,254 | $ 172,482 | $ (9,886) | $ 162,596 | $ (1,342) |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Stockholders' Equity [Abstract] | |||
Common stock dividends | $ 1.60 | $ 1.60 | $ 1.60 |
Debt instrument stated interest rate | 4.25% | 4.25% | 4.25% |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash flows from operating activities: | |||
Net (loss) income after noncontrolling interests | $ (58,511) | $ 1,856 | $ 27,580 |
Net income attributable to noncontrolling interests | 3,908 | 5,386 | 0 |
Net (loss) income | (54,603) | 7,242 | 27,580 |
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities: | |||
Stock-based compensation expense | 15,107 | 13,754 | 8,133 |
Net (accretion of discount) amortization of premiums on investments in fixed-maturity securities | (961) | 169 | (100) |
Depreciation and amortization | 8,010 | 5,549 | 8,747 |
Deferred income tax (benefit) expense | (9,881) | 1,142 | 8,123 |
Net realized investment losses (gains) | 1,187 | (6,472) | (1,000) |
Net unrealized investment losses (gains) | 7,153 | (1,363) | (679) |
Credit loss expense - investments | 0 | 0 | 611 |
Credit loss expense - reinsurance recoverable | 364 | 5 | (368) |
Net (income) loss from unconsolidated joint venture | (495) | (417) | 57 |
Distributions received from unconsolidated joint venture | 489 | 114 | 0 |
Net (income) loss from limited partnership interests | (3,963) | (4,947) | 1,595 |
Distributions received from limited partnership interests | 3,001 | 3,604 | 1,215 |
Impairment loss | 2,284 | 0 | 0 |
Loss on repurchases of convertible senior notes | 0 | 0 | 150 |
Loss on extinguishment of debt | 0 | 0 | 98 |
Debt conversion expense | 0 | 1,754 | 0 |
Gain on involuntary conversion | (13,402) | 0 | (36,969) |
Gain on sale of real estate investments | (376) | 0 | 0 |
Gain from remeasurement of contingent liabilities | (3,117) | 0 | 0 |
Foreign currency remeasurement loss | 108 | 64 | 32 |
Other non-cash items | (47) | 61 | 46 |
Changes in operating assets and liabilities: | |||
Accrued interest and dividends receivable | (1,599) | 235 | 1,028 |
Income taxes | 1,277 | 470 | (3,514) |
Premiums receivable, net | 33,159 | 225 | (48,127) |
Prepaid reinsurance premiums | (40,272) | 10,021 | (18,393) |
Reinsurance recoverable | (612,073) | 8,491 | 47,447 |
Deferred policy acquisition costs | 12,173 | (13,837) | (22,195) |
Funds withheld for assumed business | 24,944 | (73,716) | 0 |
Other assets | (15,581) | 4,487 | (4,578) |
Losses and loss adjustment expenses | 626,600 | 24,996 | (2,528) |
Unearned premiums | 1,303 | 97,345 | 88,236 |
Advance premiums | 4,816 | 2,401 | 5,781 |
Assumed reinsurance balances payable | 0 | (87) | 11 |
Reinsurance payable on paid losses and loss adjustment expenses | 4,589 | 4,017 | 0 |
Reinsurance recovered in advance on unpaid losses | 19,863 | 0 | 0 |
Ceded reinsurance premiums payable | (1,672) | 9,554 | (3,431) |
Accrued expenses and other liabilities | (8,397) | 1,642 | 20,303 |
Net cash (used in) provided by operating activities | (12) | 96,503 | 77,311 |
Cash flows from investing activities: | |||
Investments in limited partnership interests | (1,967) | (3,756) | (4,241) |
Distributions received from limited partnership interests | 5,360 | 4,657 | 2,086 |
Distributions received from unconsolidated joint venture | 351 | 623 | 0 |
Purchase of property and equipment | (6,341) | (3,318) | (6,437) |
Purchase of real estate investments | (841) | (1,367) | (3,020) |
Purchase of intangible assets | (3,800) | 0 | 0 |
Purchase of fixed-maturity securities | (614,843) | (18,303) | (34,951) |
Purchase of equity securities | (22,887) | (102,801) | (68,223) |
Purchase of short-term and other investments | (42) | (1,307) | (200) |
Compensation received for property relinquished through eminent domain | 14,500 | 0 | 44,000 |
Proceeds from sales of real estate investments | 667 | 0 | 0 |
Proceeds from sales of fixed-maturity securities | 11,716 | 23,055 | 81,433 |
Proceeds from calls, repayments and maturities of fixed-maturity securities | 151,415 | 23,430 | 84,459 |
Proceeds from sales of equity securities | 31,605 | 112,310 | 47,312 |
Proceeds from sales, redemptions and maturities of short-term and other investments | 570 | 3,629 | 997 |
Net cash (used in) provided by investing activities | (434,537) | 36,852 | 143,215 |
Cash flows from financing activities: | |||
Cash dividends paid | (15,233) | (14,065) | (12,694) |
Cash dividends received under share repurchase forward contract | 76 | 306 | 306 |
Net (repayment) borrowing under revolving credit facility | (15,000) | (8,750) | 14,000 |
Proceeds from exercise of common stock options | 0 | 0 | 63 |
Proceeds from issuance of redeemable noncontrolling interest and warrants | 0 | 100,000 | 0 |
Issuance costs - redeemable noncontrolling interest | 0 | (6,262) | 0 |
Cash dividends paid to redeemable noncontrolling interest | (5,508) | (2,542) | 0 |
Proceeds from issuance of long-term debt | 172,500 | 0 | 10,000 |
Repayment of long-term debt | (1,009) | (970) | (17,048) |
Repurchases of convertible senior notes | 0 | 0 | (4,459) |
Repurchases of common stock | (71,242) | (1,314) | (1,547) |
Repurchases of common stock under share repurchase plan | (17,070) | 0 | (5,161) |
Purchase of noncontrolling interests | (406) | (55) | 0 |
Debt conversion expense paid | 0 | (1,895) | 0 |
Debt issuance costs | (6,041) | (152) | (165) |
Net cash provided by (used in) financing activities | 41,067 | 64,301 | (16,705) |
Effect of exchange rate changes on cash | (98) | (54) | 2 |
Net (decrease) increase in cash, cash equivalents, and restricted cash | (393,580) | 197,602 | 203,823 |
Cash, cash equivalents and restricted cash at beginning of year | 631,343 | 433,741 | 229,918 |
Cash, cash equivalents and restricted cash at end of year | 237,763 | 631,343 | 433,741 |
Supplemental disclosure of cash flow information: | |||
Cash paid for income taxes | 146 | 2,379 | 6,202 |
Cash paid for interest | 6,155 | 7,110 | 7,476 |
Non-cash investing and financing activities: | |||
Unrealized loss on investments in available-for-sale securities, net of tax | (10,772) | (1,068) | (634) |
Receivable from sales of equity securities | 0 | 0 | 5,240 |
Payable on purchases of equity securities | 0 | 0 | 7 |
Common stock issued on conversions of 4.25% senior notes | 0 | 114,928 | 0 |
Warrants issued in Centerbridge transaction | 0 | 9,217 | 0 |
Asset acquired under finance lease | 0 | 6 | 0 |
Acquisition of intangibles: | |||
Common stock issued | 0 | 5,410 | 0 |
Contingent consideration payable | $ 1,069 | $ 2,419 | $ 0 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Statement of Cash Flows [Abstract] | |||
Debt instrument stated interest rate | 4.25% | 4.25% | 4.25% |
Nature of Operations
Nature of Operations | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations | Note 1 -- Nature 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 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 addition, Greenleaf Capital, LLC, the Company’s real estate subsidiary, is primarily engaged in the businesses of owning and leasing real estate and operating marina facilities. Assumed Business Northeast Region Effective December 31, 2020, the Company began providing 69.5 % quota share reinsurance on all in-force, new and renewal policies issued by United Property & Casualty Insurance Company, an insurance subsidiary of United Insurance Holdings Corporation (“United”), in the states of Connecticut, New Jersey, Massachusetts, and Rhode Island (collectively “Northeast Region”) through May 31, 2021. The Company also entered into a renewal rights agreement with United in connection with the Northeast Region assumed business, under which, the Company has the right to renew and/or replace United’s insurance policies at the end of their respective policy periods. The policy replacement date was set for June 1, 2021 or such other date as mutually agreed by both parties. In return, United received 100,000 shares of HCI’s common stock and will receive a renewal rights ceding commission of 6 % on any replacement premium in excess of $ 80,000 . The aggregate ceding commission amount will not exceed $ 3,100 . Effective June 1, 2021, the Company, through HCPCI and TypTap, began providing 100 % quota share reinsurance on all of United’s in-force, new and renewal policies in the Northeast Region through May 31, 2022. Under this agreement, each insurance subsidiary assumed 50 % of the business and paid United a ceding commission of 24 % of premium. Through its insurance subsidiaries, the Company began renewing and/or replacing United policies in two states in December 2021, a third state in January 2022, and the fourth state in April 2022. See Note 9 -- “Intangible Assets, Net” for additional information. Southeast Region In February 202 2, HCPCI entered into another reinsurance agreement with United where HCPCI provides 85 % quota share reinsurance on all of United’s personal lines insurance business in the states of Georgia, North Carolina, and South Carolina (collectively “Southeast Region”) from December 31, 2021 through May 31, 2022. Under this agreement, HCPCI paid United a catastrophe allowance of 9 % of premium and a provisional ceding commission of 25 % of premium. The Company also entered into a renewal rights agreement with United in connection with the Southeast Region assumed business. Under the renewal rights agreement, the Company has the right to renew and/or replace United’s insurance policies at the end of their respective policy periods. The policy replacement date was set for June 1, 2022 or such other date as mutually agreed by both parties. As part of the transaction, United will receive a renewal rights ceding commission of 6 %, with a portion of the ceding commission paid up-front, and the aggregate ceding commission amount will not exceed $ 6,000 . See Note 9 -- “Intangible Assets, Net” for additional information. The Company, through TypTap, entered into a new quota share reinsurance agreement in June 2022 to provide 100 % reinsurance on all of United’s in-force, new and renewal policies in the Southeast Region from June 1, 2022 through May 31, 2023. In exchange, TypTap pays United a ceding commission of 16 % of premium. The Company began renewing United’s policies in South Carolina on June 1, 2022. On October 1, 2022, the Company began renewing and/or replacing United’s policies in Georgia. On December 1, 2022, the Company began renewing United’s policies in North Carolina. Implications of Florida Senate Bill 2-A In December 2022, the Florida legislature passed Senate Bill 2-A (“SB 2-A”). The primary purpose of SB 2-A is to address the affordability and availability of residential property insurance in Florida. The bill also requires insurers to communicate, investigate, and pay valid claims more promptly. Key provisions in SB 2-A are- • The establishment of a new program called the Florida Optional Reinsurance Assistance Program. The program is intended to make available additional reinsurance coverage to residential property insurers against catastrophic losses at reasonable rates. • The repeal of Florida’s one-way attorney’s fee provision, which entitled an insured to reasonable attorney’s fees in any lawsuit in which any amount of recovery was awarded. • The requirement of an expedited claims process. Reduced time limits for insurers to respond to policyholders throughout the claims resolution process will be mandated. • The prohibition of an Assignment of Benefits (“AOB”) contract from being applied to residential property insurance policies. This provision is intended to prevent AOBs from being used as a tool for fraud and abuse and will help enforce the law passed in May 2022 prohibiting contractor solicitation of roof claims without proper disclosure to a consumer. • The reduction in the required time limit for filing a claim. The time limit for providing a notice of loss to an insurer is reduced from two years to one year for initial or reopened claims and from three years to 18 months for supplemental claims. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 2 -- Summary of Significant Accounting Policies Basis of Presentation. The accompanying financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). Principles of Consolidation. The accompanying consolidated financial statements include the accounts of HCI Group, Inc. and its majority-owned and controlled subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. In addition, the Company evaluates its relationships or investments for consolidation pursuant to authoritative accounting guidance related to the consolidation of variable interest entities under the Variable Interest Model prescribed by the FASB. A variable interest entity is consolidated when the Company has the power to direct activities that most significantly impact the economic performance of the variable interest entity and has the obligation to absorb losses or the right to receive benefits from the variable interest entity that could potentially be significant to the variable interest entity. When a variable interest entity is not consolidated, the Company uses the equity method to account for the investment. Under this method, the carrying value is generally the Company’s share of the net asset value of the unconsolidated entity, and changes in the Company’s share of the net asset value are recorded in net investment income. Use of Estimates. The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities as well as the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results may differ materially from these estimates. Material estimates that are particularly susceptible to significant change in the near term are primarily related to losses and loss adjustment expenses, reinsurance with retrospective provisions, reinsurance recoverable, deferred income taxes, limited partnership investments, intangible assets acquired from United, allowance for credit losses, and stock-based compensation expense. Cash and Cash Equivalents. The Company considers all short-term highly liquid investments with original maturities of less than three months to be cash and cash equivalents. At December 31, 2022 and 2021 , cash and cash equivalents consisted of cash on deposit with financial institutions and securities brokerage firms, and certificates of deposit. Restricted Cash. Restricted cash represents funds in the Company’s sole ownership held by certain states in which the Company’s insurance subsidiaries conduct business to meet regulatory requirements and not available for immediate business use. Funds withheld in an account for which the Company is a co-owner but not the named beneficiary are not considered restricted cash and are included in funds withheld for assumed business on the consolidated balance sheets. Available-for-Sale Fixed-Maturity Securities. Fixed-maturity securities that are available for sale include debt securities and redeemable preferred stock. The Company’s available-for-sale securities are carried at fair value. Changes in the fair value of available-for-sale securities representing unrealized gains or losses, other than impairments, are excluded from net investment income and reported in stockholders’ equity as a component of accumulated other comprehensive income (loss), net of deferred income taxes. Realized investment gains and losses from sales are recorded on the trade date and are determined using the first-in first-out (“FIFO”) method. Investment income is recognized as earned and discounts or premiums arising from the purchase of debt securities are recognized in investment income using the interest method over the estimated remaining term of the security. Gains and losses from call redemptions and repayments are charged to investment income. The Company reviews fixed-maturity securities for impairment on a monthly basis. Effective January 1, 2020, net unrealized loss in the fair value of an available-for-sale fixed-maturity security is evaluated for impairment. When reviewing impaired securities, the Company considers its ability and intent to hold these securities and whether it is probable that the Company will be required to sell these securities prior to their anticipated recovery or maturity. For the fixed-maturity securities that the Company intends to sell or it is probable that the Company will have to sell before recovery or maturity, the unrealized losses are recognized as impairment losses in income. Impaired securities where the Company has the ability and intent to hold until recovery and believes it is not probable that the Company will be required to sell these securities prior to their anticipated recovery or maturity, are evaluated for the existence of credit-related losses. When determining impairment due to a credit-related loss, the Company carefully considers factors such as the issuer’s financial ratios and condition, the security’s current ratings and maturity date, the failure of the issuer to make a scheduled payment, and overall market conditions in estimating the cash flows expected to be collected. The expected cash flows discounted at the effective interest rate of the security implicit at the date of acquisition are then compared with the security’s amortized cost at the measurement date. A credit loss is incurred when the present value of the expected cash flows is less than the security’s amortized cost. If such credit-related losses exist, an allowance for credit losses is established with a charge in the statement of income. Subsequent changes in the allowance, whether favorable or unfavorable, are recorded on the statement of income. See additional information in the Allowance for Credit Losses section within this note. Any remaining impairment loss related to other non-credit factors such as changes in interest rates or market conditions is reflected as a component of accumulated other comprehensive income (loss). Allowance for Credit Losses. Allowance for credit losses represents an estimation of potential losses that the Company may experience due to credit risk. The allowance for credit losses account is a contra account of a financial asset to reflect the net amount expected to be collected. Any increase or decrease in the allowance for credit losses related to investments is recognized and reflected as credit losses on investments in the Company’s consolidated statement of income. For all other financial assets, credit loss expense is included in other operating expenses. When the risk of credit loss becomes certain, the allowance for credit losses account will be written off against the financial asset. Under the CECL model, the Company measures all expected credit losses related to relevant financial assets based on historical experience, current conditions, and reasonable and supportable forecasts which incorporate forward-looking information. The Company primarily uses a discounted cash flow method and a rating-based method in estimating credit losses at a reporting date for financial assets under the scope of the CECL model. The discounted cash flow method is a valuation method used to estimate the value of a financial asset based on its future cash flows. The Company uses this method to determine the expected credit losses for available-for-sale fixed-maturity securities. In addition, the Company elected not to measure an allowance for credit losses for accrued interest receivable as any uncollectible amount is adjusted to interest income on a monthly basis. At present, the exposure to credit losses for certain financial assets related to non-insurance business is considered immaterial to the Company’s financial position. For certain financial assets related to insurance business such as reinsurance recoverable and reinsurance receivable for premium refund, the Company uses a rating-based method, which is a modified version of the probability of default method. It requires two key inputs: a) the liquidation rate and b) the amount of loss exposure. The liquidation rate, which is published annually, is the ratio of impaired insurance companies that were eventually liquidated to the group of insurance companies considered by A.M. Best in its study. The amount of loss exposure represents the future billing balance, net of any collateral, spread over the projected periods that are based on the Company’s historical claim payment pattern. The rating-based method measures credit losses by multiplying the future billings grouped by insurance rating over the projected periods by their corresponding liquidation rates by insurance rating. For paid reinsurance recoverable which is due within 90 days after billing, the Company will rely heavily on each reinsurer’s credit rating, recent financial condition, and historical collection problems, if any, in determining the expected credit loss. For risk attributable to disagreements between an insurer and reinsurer regarding a difference in interpretation of provisions in a reinsurance agreement (“dispute risk”), the Company will continue to use an incurred loss method to estimate losses. At December 31, 2022 , there was no dispute risk associated with the reinsurance recoverable balance. Equity Securities. Equity securities represent ownership interests held by the Company in entities for investment purposes. Unrealized holding gains and losses related to equity securities are reported in the consolidated statements of income as net unrealized investment gains and losses. Realized investment gains and losses from sales are recorded on the trade date and are determined using the FIFO method (see Equity Securities in Note 4 -- “Investments”). Limited Partnership Investments. The Company has interests in limited partnerships that are not registered under the United States Securities Act of 1933, as amended, the securities laws of any state or the securities laws of any other jurisdictions. The partnership interests cannot be resold in the public market and any withdrawal is subject to the terms and conditions of the partnership agreements. The Company has no influence over partnership operating and financial policies. The Company uses the equity method to account for the investments with ownership interest greater than five percent. For the investments with ownership interest at five percent or less, the Company uses the net asset value method to estimate the fair value of these investments. The Company generally recognizes its share of the limited partnerships’ earnings or losses on a three-month lag. Due to the lag, the Company may record an adjustment to the Company’s most recent share of net asset value when the amount can be reasonably estimated and a significant adverse impact on the net asset value is expected as a result of a major economic event. Net investment income or loss from limited partnerships represents a net aggregate amount of operating results allocated to the Company based on the percentage of ownership interest in each limited partnership. Pursuant to U.S. GAAP, these limited partnerships which are private equity funds must measure their investments at fair value and reflect the unrealized gains and losses in the fair value of their investments on their statements of income. As a result, the carrying value of limited partnership investments at each reporting date approximates their estimated fair value. Investment in Unconsolidated Joint Venture. The Company had a 90 % equity interest in a limited liability company (treated as a joint venture under U.S. GAAP) that owned land for lease or for sale. The joint venture was determined to be a variable interest entity as it lacked sufficient equity to finance its activities without additional subordinated financial support. Despite having a majority equity interest, the Company did not have the power to direct the activities that most significantly impact the economic performance of the joint venture and, accordingly, was not required to consolidate the joint venture as its primary beneficiary. As a result, the Company used the equity method to account for this investment. When evidence indicates an impairment may occur, the Company evaluates whether a decline in value is other than temporary. Evidence may include continuing operating losses of the joint venture, a declining occupancy rate, a decrease in real estate value, and an oversupply of rental property in close vicinity to the investment property. Should available evidence indicate the recovery of the initial investment is less likely, the Company would compare the carrying value of the investment with its expected residual value and recognize an impairment loss in earnings. Real Estate Investments. Real estate investments include real estate and the related assets purchased for investment purposes (see Note 4 -- “Investments”). Real estate and the related depreciable assets are carried at cost, net of accumulated depreciation, which is included in net investment income and allocated over the estimated useful life of the asset using the straight-line method of depreciation. Land is not depreciated. Real estate is evaluated for impairment when events or circumstances indicate the carrying value of the real estate may not be recoverable. Deferred Policy Acquisition Costs. Deferred policy acquisition costs (“DAC”) represent direct costs to acquire insurance contracts and consist of premium taxes, inspection fees and commissions paid to outside agents at the time of collection of the policy premium. DAC may also include expenses associated with the transition of policies from other insurers for replacement policies and the issuance of renewal policies under the Company’s own rates and terms. DAC is amortized over the life of the related policy in relation to the amount of gross premiums earned. Ceding commission and related costs paid associated with assumed business are also deferred and amortized over the life of the reinsurance agreement. The method followed in computing DAC limits the amount of such deferred costs to their estimated realizable value, which gives effect to the gross premium earned, related investment income, unpaid losses and loss adjustment expenses and certain other costs expected to be incurred as the premium is earned. DAC is reviewed to determine if it is recoverable from future premium income, including investment income. If such costs are determined to be unrecoverable, they are expensed at the time of determination. The amount of DAC considered recoverable could be reduced in the near term if the estimates of total gross premium earned are reduced or permanently impaired as a result of the disposition of a line of business. The amount of amortization of DAC could be revised in the near term if any of the gross premium earned estimates discussed above are revised. Property and Equipment. Property and equipment is stated at cost less accumulated depreciation and amortization, which is included in other operating expenses. Depreciation is calculated on a straight-line basis over the estimated useful lives as follows: land improvements, five years ; building, 39 years; building improvements, three to ten years ; computer hardware and software, three years ; and furniture and office equipment, three to seven years . Leasehold improvements are amortized over the shorter of the lease term or the asset’s useful life. Land is not depreciated. Expenditures for improvements are capitalized to the property accounts. Replacements and maintenance and repairs that do not improve or extend the life of the respective assets are expensed as incurred. The Company capitalizes both internal and external costs for internally developed software during the application development stage. During the preliminary project and post-implementation stage, internal-use software development costs are expensed as incurred. Capitalized software costs are depreciated on a straight-line basis over the estimated useful life of seven years . Impairment of Long-Lived Assets. Long-lived assets, such as property and equipment, are reviewed for impairment annually or whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. The Company assesses the recoverability of long-lived assets by determining whether the assets can be recovered from undiscounted future cash flows. Recoverability of long-lived assets is dependent upon, among other things, the Company’s ability to maintain profitability so as to be able to meet its obligations when they become due. In the opinion of management, based upon current information and projections, tangible long-lived assets will be recovered over the period of benefit. Leases. The Company leases office equipment, storage units, and office space from non-affiliates under terms ranging from one month up to nine years . In assessing whether a contract is or contains a lease, the Company first determines whether there is an identified asset in the contract. The Company then determines whether the contract conveys the right to obtain substantially all of the economic benefits from use of the identified asset or the right to direct the use of the identified asset. The Company elects not to record any lease with a term of 12 months or less on the consolidated balance sheet. For such short-term leases, the Company recognizes the lease payments in expense on a straight-line basis over the lease term. If the contract is or contains a lease and the Company has the right to control the use of the identified asset, the right-of-use (“ROU”) asset and the lease liability is measured from the lease component of the contract and recognized on the consolidated balance sheet. In measuring the lease liability, the Company uses its incremental borrowing rate for a loan secured by a similar asset that has a term similar to the lease term to discount the lease payments. The contract is further evaluated to determine the classification of the lease as to whether it is finance or operating. If the lease is a finance lease, the ROU asset is depreciated to depreciation expense over the shorter of the useful life of the asset or the lease term. Interest expense is recorded in connection with the lease liability using the effective interest method. If the lease is an operating lease, the ROU asset is amortized to lease expense on a straight-line basis over the lease term. For the presentation of finance leases on the Company’s consolidated balance sheets, ROU assets and corresponding lease liabilities are included with property and equipment, net, and long-term debt, respectively. For the presentation of operating leases on the Company’s consolidated balance sheets, ROU assets are presented as right-of-use assets - operating leases and corresponding lease liabilities are reflected as lease liabilities - operating leases. The Company as a lessor leases its commercial and retail properties, boat slips, and docks to non-affiliates at various terms. If the contract gives the Company’s customer the right to control the use of the identified asset, revenue is recognized on a straight-line basis over the lease term. Initial direct costs incurred by the Company are deferred and amortized on a straight-line basis over the lease term. The Company also records an unbilled receivable, which is the amount by which straight-line revenue exceeds the amount billed in accordance with the lease. Intangible Assets. Intangibles related to real estate investments consist of the value attributable to the acquired in-place leases and the primary, or anchor, tenant relationships. The value attributable to the anchor tenant relationship represents the economic benefits of having a nationally recognized retailer as the lead tenant, which draws consumer traffic and other tenants to the retail center. These intangibles are amortized to expense over the related lease term. Amortization of the intangibles related to real estate investments is reflected in net investment income in the consolidated statements of income. The Company reviews these intangible assets for impairment annually or when events or changes in circumstances indicate the carrying value may not be recoverable. In the event the Company determines the carrying value is not recoverable, an impairment loss is recorded in the Company’s consolidated statement of income. Acquired intangible assets represent the fair value of consideration the Company paid and is estimated to pay in exchange for the renewal rights and non-compete intangible assets acquired from the seller. In the renewal rights transactions, the Company purchased the right, but not the obligation, to offer homeowners insurance coverage to all policyholders of the seller in certain states on the agreed-upon policy replacement date. The renewal rights agreements also contain a non-compete clause whereby the seller agrees not to offer homeowners insurance policies in these states through a specified date. The Company records these intangible assets based on the fair value of the consideration it paid and is estimated to pay to the seller as provided in the renewal rights agreements with the seller. The Company engaged a third-party valuation specialist to assist with the allocation of the renewal rights and non-compete intangible assets acquired. Intangible assets are amortized over their estimated useful lives. Amortization of the renewal rights and non-compete intangible assets is reflected in other operating expenses in the consolidated statements of income. Intangible assets are evaluated to ensure that there is no impairment to carrying value and no change required in the amortization period. See Note 9 -- “Intangible Assets, Net” for additional information. Funds Withheld for Assumed Business. Pursuant to the Company’s quota share reinsurance agreements with United, trust accounts were established for the benefit of United as beneficiary. The balance represents the net amount owed to the Company under the reinsurance agreements and consists of funds deposited to establish the trust accounts adjusted for subsequent premium changes net of related commissions and decreased for paid losses and loss adjustment expenses. The assets within the trust accounts consist primarily of cash and United has the exclusive and unconditional right to withdraw funds from the trust accounts on demand with written notice in compliance with the quota share reinsurance agreements. Any balance remaining at the termination of the quota share agreement will be settled and distributed upon the termination of the trust account and trust agreement. Lease Acquisition Costs. Lease acquisition costs represent capitalized costs of finding and acquiring tenants such as leasing commissions, legal, and marketing expenses. The costs are included in other assets on the consolidated balance sheets. The Company amortizes these costs in other operating expenses on a straight-line basis over the term of a lease. Long-Term Debt. Long-term debt includes debt instruments and finance lease obligations. A debt instrument is generally classified as a liability and carried at amortized cost, net of any issuance costs. Debt issuance costs are capitalized and amortized to interest expense over the expected life of the debt instrument using the effective interest method. At issuance, a debt instrument with embedded features such as conversion and redemption options is evaluated to determine whether bifurcation and derivative accounting is applicable. Any embedded feature other than the conversion option is evaluated at issuance to determine if it is probable that such embedded feature will be exercised. If the Company concludes that the exercisability of that embedded feature is not probable, the embedded feature is considered to be non-substantive and would not impact the initial measurement and expected life of the debt instrument. Prior to January 1, 2021, if the embedded feature of the debt instrument was not subject to derivative accounting, the debt instrument was further evaluated to determine if the Company was required to separately account for the liability and equity components. To determine the carrying values of the liability and equity components at issuance, the Company measured the fair value of a similar liability, including any embedded features other than the conversion option, and assigned such value to the liability component. The liability component’s fair value was then subtracted from the initial proceeds to determine the carrying value of the debt instrument’s equity component, which was included in additional paid-in capital. Transaction costs related to issuing a debt instrument that embodies both liability and equity components were allocated to the liability and equity components in proportion to the allocation of the proceeds and accounted for as debt issuance costs and equity issuance costs, respectively. Both debt discount and deferred debt issuance costs were amortized to interest expense over the expected life of the debt instrument. Equity issuance costs were a reduction to the proceeds allocated to the equity component. 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 sheets. The interest contains rights in dividends, voting, conversion, participation, liquidation preference and redemption. The redemption feature is not solely within the control of TTIG. 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 stock-based 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. Prepaid Share Repurchase Forward Contract. A prepaid share repurchase forward contract is generally a contract that allows the Company to buy from the counterparty a specified number of common shares at a specific time at a given forward price. The Company entered into such a contract and evaluated the characteristics of the forward contract to determine whether it met the definition of a derivative financial instrument pursuant to U.S. GAAP. The Company determined the forward contract is an equity contract on the Company’s common shares requiring physical settlement in common shares of the Company. As such, the transaction is recognized as a component of stockholders’ equity with a charge to additional paid-in capital equal to the prepayment amount, which represents the cash paid to the counterparty. There will be no recognition in earnings for changes in fair value in subsequent periods. Losses and Loss Adjustment Expenses. Reserves for losses and loss adjustment expenses (“LAE”) are determined by establishing liabilities in amounts estimated to cover incurred losses and LAE. Such reserves are determined based on the assessment of claims reported and the development of pending claims. These reserves are based on individual case estimates for the reported losses and LAE and estimates of such amounts that are incurred but not reported. Changes in the estimated liability are charged or credited to income as the losses and LAE are settled. The estimates of unpaid losses and LAE are subject to trends in claim severity and frequency and are continually reviewed. As part of the process, the Company reviews historical data and considers various factors, including known and anticipated regulatory and legal developments, changes in social attitudes, inflation and economic conditions. As experience develops and other data becomes available, these estimates are revised, as required, resulting in increases or decreases to the existing unpaid losses and LAE. Adjustments are reflected in the results of operations in the period in which they are made and the liabilities may deviate substantially from prior estimates. Losses and LAE ceded to or recovered from reinsurers are recorded as a reduction to losses and LAE on the consolidated statement of income. Advance Premiums. Premium payments received prior to the policy effective date are recorded as advance premiums. Once the policy is in force, the premiums are recorded as described under “ Premium Revenue ” below. Premiums Receivable. Premiums receivable represent the amount of premiums due from policyholders for insurance coverage. Premiums are recorded as receivable in the Company’s general ledger on the effective date of the policy. Premiums are billed to the policyholder 45-60 days in advance of the effective date. The policyholder is given a 30-day grace period after the effective date to pay the premium before the insurance coverage is cancelled. If the policyholder does not pay the premium, the Company can cancel the policy and has no obligation to provide insurance coverage. Unpaid renewal policies are cancelled at midnight on the last day of the period for which the policyholder has paid. The unearned premium liability for the cancelled policy is reversed along with the premium receivable balance. Therefore, there is no unpaid earned premium and credit loss associated with the cancelled policy. However, when the 30-day grace period falls between two reporting periods, the premium receivable balance at the end of the first reporting period may potentially be overstated for not considering the policy that is subsequently cancelled during the following reporting period. To mitigate the overstatement issue, the Company estimates the monetary impact from the subsequent policy cancellation by multiplying the historical cancellation rate to the premiums receivable balance at the reporting date. An allowance for uncollectible premiums, which offsets the balance of premiums receivable, is established by reducing the unearned premiums liability and earned revenues. At December 31, 2022 and 2021 , allowances for uncollectible premiums were $ 5,362 and $ 1,750 , respectively. The increase in allowances for uncollectible premiums during 2022 resulted in a $ 3,432 decrease in unearned premiums during the year ended December 31, 2022. The decrease in allowances for uncollectible premiums during 2021 resulted in a $ 318 increase in unearned premiums during the year ended December 31, 2021. Reinsurance Ceded . In the normal course of business, the Company seeks to reduce the loss that may arise from catastrophes or other events by reinsuring certain levels of risk in various areas of exposure with other insurance enterprises or reinsurers. The Company contracts with a number of reinsurers to secure its annual reinsurance coverage, which generally becomes effective June 1st of each year. The Company purchases reinsurance each year taking into consideration probable maximum losses and reinsurance market conditions. Amounts recoverable from reinsurers are estimated in a manner consistent with the applicable reinsurance contract or contracts. Premiums ceded to other companies have been reported as a reduction of gross premiums earned. Prepaid rein |
Cash, Cash Equivalents, and Res
Cash, Cash Equivalents, and Restricted Cash | 12 Months Ended |
Dec. 31, 2022 | |
Cash and Cash Equivalents [Abstract] | |
Cash, Cash Equivalents, and Restricted Cash | Note 3 -- 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 consolidated statements of cash flows. December 31, 2022 2021 Cash and cash equivalents $ 234,863 $ 628,943 Restricted cash 2,900 2,400 Total $ 237,763 $ 631,343 At December 31, 2022 , $ 175,331 or 74.7 % of the Company’s cash and cash equivalents were deposited at four national banks and included $ 15,796 with two custodians. At December 31, 2021 , $ 527,294 or 83.8 % of the Company’s cash and cash equivalents were deposited at six national banks and included $ 181,390 with two custodians. At December 31, 2022 and 2021 , the Company’s cash deposits at any one bank generally exceed the Federal Deposit Insurance Corporation’s $ 250 coverage limit for insured deposit accounts. |
Investments
Investments | 12 Months Ended |
Dec. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | Note 4 -- Investments a) Available-for-Sale Fixed-Maturity Securities The Company holds investments in fixed-maturity securities that are classified as available-for-sale. At December 31, 2022 and 2021, 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 Credit Loss Gain Loss Value As of December 31, 2022 U.S. Treasury and U.S. government agencies $ 463,648 $ — $ 59 $ ( 9,105 ) $ 454,602 Corporate bonds 28,378 — 20 ( 1,205 ) 27,193 State, municipalities, and political subdivisions 1,389 — — ( 6 ) 1,383 Exchange-traded debt 683 — 2 ( 52 ) 633 Redeemable preferred stock 99 — — ( 9 ) 90 Total $ 494,197 $ — $ 81 $ ( 10,377 ) $ 483,901 As of December 31, 2021 U.S. Treasury and U.S. government agencies $ 17,046 $ — $ 64 $ ( 86 ) $ 17,024 Corporate bonds 21,913 — 632 ( 53 ) 22,492 State, municipalities, and political subdivisions 1,759 — 49 — 1,808 Exchange-traded debt 767 — 44 — 811 Redeemable preferred stock 468 — — ( 20 ) 448 Total $ 41,953 $ — $ 789 $ ( 159 ) $ 42,583 Expected maturities may differ from contractual maturities as borrowers may have the right to call or prepay obligations with or without penalties. The scheduled contractual maturities of fixed-maturity securities at December 31, 2022 and 2021 are as follows: December 31, 2022 2021 Cost or Estimated Cost or Estimated Amortized Fair Amortized Fair Cost Value Cost Value Available-for-sale Due in one year or less $ 266,170 $ 265,353 $ 10,734 $ 10,826 Due after one year through five years 223,153 214,307 19,222 19,820 Due after five years through ten years 4,380 3,797 11,503 11,403 Due after ten years 494 444 494 534 $ 494,197 $ 483,901 $ 41,953 $ 42,583 Sales of Available-for-Sale Fixed-Maturity Securities Proceeds received, and the gross realized gains and losses from sales of available-for-sale fixed-maturity securities, for the years ended December 31, 2022, 2021 and 2020 were as follows: Gross Gross Realized Realized Proceeds Gains Losses Year ended December 31, 2022 $ 11,716 $ 13 $ ( 442 ) Year ended December 31, 2021 $ 23,055 $ 722 $ ( 35 ) Year ended December 31, 2020 $ 81,433 $ 1,773 $ ( 610 ) Gross Unrealized Losses for Available-for-Sale Fixed-Maturity Securities Securities with gross unrealized loss positions at December 31, 2022 and 2021, 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 As of December 31, 2022 Gross Estimated Gross Estimated Gross Estimated U.S. Treasury and U.S. government agencies $ ( 8,701 ) $ 269,116 $ ( 404 ) $ 4,644 $ ( 9,105 ) $ 273,760 Corporate bonds ( 909 ) 23,028 ( 296 ) 2,541 ( 1,205 ) 25,569 States, municipalities, and political ( 6 ) 1,383 — — ( 6 ) 1,383 Exchange-traded debt ( 52 ) 463 — — ( 52 ) 463 Redeemable preferred stock ( 9 ) 90 — — ( 9 ) 90 Total available-for-sale securities $ ( 9,677 ) $ 294,080 $ ( 700 ) $ 7,185 $ ( 10,377 ) $ 301,265 Less Than Twelve Months Twelve Months or Longer Total As of December 31, 2021 Gross Estimated Gross Estimated Gross Estimated U.S. Treasury and U.S. government agencies $ ( 73 ) $ 9,809 $ ( 13 ) $ 616 $ ( 86 ) $ 10,425 Corporate bonds ( 53 ) 4,452 — — ( 53 ) 4,452 Redeemable preferred stock ( 20 ) 442 — — ( 20 ) 442 Total available-for-sale securities $ ( 146 ) $ 14,703 $ ( 13 ) $ 616 $ ( 159 ) $ 15,319 At December 31, 2022 and 2021 , there were 84 and 23 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 fixed-maturity securities for the years ended December 31, 2022 and 2021: 2022 2021 Balance at January 1 $ — $ 588 Reductions for securities sold — ( 9 ) Reductions for securities exchanged — ( 579 ) Balance at December 31 $ — $ — For the years ended December 31, 2022 and 2021, the Company recognized $ 0 credit loss expense related to fixed-maturity securities in the consolidated statements of income compared with $ 611 of credit loss expense on two fixed-maturity securities for the year ended December 31, 2020. b) Equity Securities The Company holds investments in equity securities measured at fair values which are readily determinable. At December 31, 2022 and 2021, 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 December 31, 2022 $ 36,272 $ 2,078 $ ( 3,767 ) $ 34,583 December 31, 2021 $ 46,276 $ 6,335 $ ( 871 ) $ 51,740 The table below presents the portion of unrealized gains and losses in the Company’s consolidated statements of income related to equity securities still held. Years Ended December 31, 2022 2021 2020 Net (losses) gains recognized $ ( 8,149 ) $ 5,486 $ 435 Exclude: Net realized (losses) gains recognized for ( 996 ) 4,123 ( 244 ) Net unrealized (losses) gains recognized $ ( 7,153 ) $ 1,363 $ 679 Sales of Equity Securities Proceeds received, and the gross realized gains and losses from sales of equity securities, for the years ended December 31, 2022, 2021 and 2020 were as follows: Gross Gross Proceeds Gains Losses Year ended December 31, 2022 $ 31,605 $ 2,224 $ ( 3,220 ) Year ended December 31, 2021 $ 112,310 $ 6,280 $ ( 2,157 ) Year ended December 31, 2020 $ 47,312 $ 2,868 $ ( 3,112 ) 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: December 31, 2022 December 31, 2021 Carrying Unfunded Carrying Unfunded Investment Strategy Value Balance (%) (a) Value Balance (%) (a) Primarily in senior secured loans and, to $ 4,146 $ — 15.37 $ 6,076 $ 2,085 15.37 Value creation through active distressed 2,528 — 1.66 3,423 — 1.69 High returns and long-term capital 5,319 — 0.18 6,270 1,401 0.18 Value-oriented investments in less liquid 3,470 — 0.56 4,437 — 0.57 Value-oriented investments in mature real 7,457 3,125 1.32 5,977 4,537 1.36 Risk-adjusted returns on credit and equity 2,782 2,536 0.98 1,950 3,050 0.47 Total $ 25,702 $ 5,661 $ 28,133 $ 11,073 (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) The term is expected to be the later of ten years or two years following the maturity of the fund’s outstanding leverage. Although the capital commitment period has expired, follow-on investments and pending commitments may require additional fundings. (d) The term has been extended for a second additional one-year period to June 30, 2023 . Although the capital commitment period has ended, the general partner could still request an additional funding 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 an eight-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) The term is expected to end November 27, 2027 . The term may be extended for up to four additional one-year periods at the general partner’s discretion, and up to two additional one-year periods with the consent of the advisory committee. (k) Expected to have an eight-year term after the final admission date. The term may be extended for an additional one-year period at the general partner’s discretion, and up to two additional one-year periods with the consent of either the advisory committee or a majority of limited partners. 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. Years Ended December 31, 2022 2021 2020 Operating results: Total income $ 1,252,264 $ 705,610 $ ( 1,432,907 ) Total expenses ( 139,174 ) ( 131,463 ) ( 133,281 ) Net income (loss) $ 1,113,090 $ 574,147 $ ( 1,566,188 ) December 31, 2022 2021 Balance sheet: Total assets $ 5,119,695 $ 5,855,616 Total liabilities $ 430,354 $ 564,732 For the years ended December 31, 2022 and 2021 , the Company recognized net investment income of $ 3,963 and $ 4,947 , respectively, compared with net investment loss of $ 1,595 for the year ended December 31, 2020, for these investments. At December 31, 2022 and 2021 , the Company’s net cumulative contributed capital to the partnerships existing at each respective balance sheet date totaled $ 24,978 and $ 28,371 , respectively, and the Company’s maximum exposure to loss aggregated $ 25,702 and $ 28,133 , respectively. During the year ended December 31, 2022 , the Company received in cash returns on investment of $ 3,001 and returns of capital of $ 5,360 compared with returns on investment of $ 3,604 and returns of capital of $ 4,657 during the year ended December 31, 2021. During the year ended December 31, 2020 , the Company received total cash distributions of $ 3,301 , representing $ 1,215 of returns on investment and $ 2,086 of returned capital. d) Investment in Unconsolidated Joint Venture Melbourne FMA, LLC, a wholly owned subsidiary, had an equity investment in FMKT Mel JV, a Florida limited liability company treated as a joint venture under U.S. GAAP. At December 31, 2022 and 2021 , the Company’s maximum exposure to loss relating to this variable interest entity was $ 18 and $ 363 , respectively, representing the carrying value of the investment. At December 31, 2022, 2021 and 2020, there wa s no undistributed income from this equity method investment. In June 2022, FMKT Mel JV sold its last remaining outparcel and recognized a gain on sale of $ 572 before distributing its earnings in July 2022 and being liquidated in December 2022. For the year ended December 31, 2022 , the Company received a cash distribution of $ 840 , representing a combined distribution of $ 489 in earnings and $ 351 in capital. For the year ended December 31, 2021 , the Company received a cash distribution of $ 737 , representing a combined distribution of $ 114 in earnings and $ 623 in capital. For the year ended December 31, 2020 , the Company did no t receive any cash distributions. See Note 28 -- “Subsequent Events” for information on the final distribution. The following tables provide FMJV’s summarized unaudited financial results and the unaudited financial positions: Years Ended December 31, 2022 2021 2020 Operating results: Total revenues $ 572 $ 540 $ — Total expenses ( 22 ) ( 77 ) ( 64 ) Net income (loss) $ 550 $ 463 $ ( 64 ) The Company’s share of net income (loss)* $ 495 $ 417 $ ( 57 ) * Included in net investment income in the Company’s consolidated statements of income. December 31, 2022 2021 Balance sheet: Property and equipment, net $ — $ 357 Cash — 29 Other — 18 Total assets $ — $ 404 Members’ capital $ — $ 404 Total members’ capital $ — $ 404 Investment in unconsolidated joint venture, at equity** $ 18 $ 363 ** Includes the 90 % share of FMKT Mel JV’s operating results. e) Real Estate Investments Real estate investments include land, buildings with office and reta il space for lease, outparcels, and marinas. Real estate investments consist of the following as of December 31, 2022 and 2021: December 31, 2022 2021 Land $ 38,327 $ 39,720 Land improvements 12,138 11,917 Buildings and building improvements 29,410 29,405 Tenant and leasehold improvements 1,742 1,511 Other 1,649 1,265 Total, at cost 83,266 83,818 Less: accumulated depreciation and amortization ( 11,878 ) ( 9,922 ) Real estate investments $ 71,388 $ 73,896 In May 2022, the Company sold one outparcel in Sorrento, Florida for net proceeds of $ 667 . On July 1, 2022, the Company closed on its agreement to sell 1.5 acres of land in Tampa, Florida for net proceeds of $ 14,500 to the Florida Department of Transportation (“FDOT”) in connection with an eminent domain proceeding for a planned road improvement project. See additional information under f) Net Investment Income below. Depreciation and amortization expense related to real estate investments was $ 1,956 , $ 1,922 and $ 1,864 , respectively, for the years ended December 31, 2022, 2021 and 2020 and was included in net investment income on the consolidated statements of income. f) Net Investment Income Net investment income (loss), by source, is summarized as follows: Years Ended December 31, 2022 2021 2020 Available-for-sale fixed-maturity securities $ 6,367 $ 1,375 $ 4,252 Equity securities 1,204 1,411 1,388 Investment expense ( 491 ) ( 542 ) ( 497 ) Limited partnership investments 3,963 4,947 ( 1,595 ) Real estate investments 16,126 4,086 ( 620 ) Net income (loss) from unconsolidated joint venture 495 417 ( 57 ) Cash and cash equivalents 4,783 641 1,691 Short-term investments — — 2 Net investment income $ 32,447 $ 12,335 $ 4,564 In May 2022, income from real estate investments included a net gain of $ 376 resulting from the sale of the outparcel described in e) Real Estate Investments and $ 451 of income from selling the liquor license previously owned by the Company’s restaurant business which was discontinued in 2020. In July 2022, income from real estate investments included a net realized gain of $ 13,402 resulting from the sale of 1.5 acres of land in Tampa, Florida for net proceeds of $ 14,500 to the FDOT. During the year ended December 31, 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. g) Other Investments From time to time, the Company may invest in financial assets other than stocks, mutual funds, and bonds. For the years ended December 31, 2022, 2021 and 2020 , net realized gains related to other investments were $ 238 , $ 1,662 and $ 81 , respectively. |
Comprehensive Income (Loss)
Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Comprehensive Income (Loss) | Note 5 -- Comprehensive Income (Loss) Comprehensive income (loss) includes net income (loss) 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 to any 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: Year Ended December 31, 2022 Before Tax Income Tax Net of Tax Net unrealized losses $ ( 11,355 ) $ ( 263 ) $ ( 11,092 ) Reclassification adjustment for net realized losses 429 109 320 Total other comprehensive loss $ ( 10,926 ) $ ( 154 ) $ ( 10,772 ) Year Ended December 31, 2021 Income Tax Before Tax Effect Net of Tax Net unrealized losses $ ( 692 ) $ ( 170 ) $ ( 522 ) Call and repayment gains charged to investment income ( 36 ) ( 9 ) ( 27 ) Reclassification adjustment for net realized gains ( 687 ) ( 168 ) ( 519 ) Total other comprehensive loss $ ( 1,415 ) $ ( 347 ) $ ( 1,068 ) Year Ended December 31, 2020 Income Tax Before Tax Effect Net of Tax Net unrealized gains $ 86 $ 21 $ 65 Credit losses on investments 611 150 461 Call and repayment gains charged to investment income ( 374 ) ( 92 ) ( 282 ) Reclassification adjustment for net realized gains ( 1,163 ) ( 285 ) ( 878 ) Total other comprehensive loss $ ( 840 ) $ ( 206 ) $ ( 634 ) |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 6 -- 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 From time to time, the Company has an amount outstanding under a revolving credit facility. The interest rate is variable and is periodically adjusted based on the Secured Overnight Financing Right (“SOFR”) plus a ten basis points adjustment plus a margin based on the debt-to-capital ratio. As a result, carrying value, when outstanding, 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 4.75 % Convertible Senior Notes 2042 Quoted price 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 tables present information about the Company’s financial assets measured at estimated fair value on a recurring basis. The tables indicate the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value as of December 31, 2022 and 2021: Fair Value Measurements Using (Level 1) (Level 2) (Level 3) Total As of December 31, 2022 Financial Assets: Cash and cash equivalents $ 234,863 $ — $ — $ 234,863 Restricted cash $ 2,900 $ — $ — $ 2,900 Fixed-maturity securities: U.S. Treasury and U.S. government agencies $ 446,233 $ 8,369 $ — $ 454,602 Corporate bonds 27,193 — — 27,193 States, municipalities, and political subdivisions — 1,383 — 1,383 Exchange-traded debt 633 — — 633 Redeemable preferred stock 90 — — 90 Total available-for-sale securities $ 474,149 $ 9,752 $ — $ 483,901 Equity securities $ 34,583 $ — $ — $ 34,583 Fair Value Measurements Using (Level 1) (Level 2) (Level 3) Total As of December 31, 2021 Financial Assets: Cash and cash equivalents $ 628,943 $ — $ — $ 628,943 Restricted cash $ 2,400 $ — $ — $ 2,400 Fixed-maturity securities: U.S. Treasury and U.S. government agencies $ 15,536 $ 1,488 $ — $ 17,024 Corporate bonds 22,492 — — 22,492 States, municipalities, and political subdivisions — 1,808 — 1,808 Exchange-traded debt 811 — — 811 Redeemable preferred stock 448 — — 448 Total available-for-sale securities $ 39,287 $ 3,296 $ — $ 42,583 Equity securities $ 51,740 $ — $ — $ 51,740 Liabilities Carried at Other Than Fair Value The following tables present fair value information for liabilities that are carried on the consolidated balance sheets at amounts other than fair value as of December 31, 2022 and 2021: Carrying Fair Value Measurements Using Estimated Value (Level 1) (Level 2) (Level 3) Fair Value As of December 31, 2022 Financial Liabilities: Long-term debt: 4.75 % Convertible Senior Notes $ 167,126 $ — $ 133,167 $ — $ 133,167 4.25 % Convertible Senior Notes 23,916 — 19,473 — 19,473 3.90 % Promissory Note 8,943 — — 8,152 8,152 3.75 % Callable Promissory Note 6,789 — — 6,171 6,171 4.55 % Promissory Note 4,900 — — 4,642 4,642 Total long-term debt $ 211,674 $ — $ 152,640 $ 18,965 $ 171,605 Carrying Fair Value Measurements Using Estimated Value (Level 1) (Level 2) (Level 3) Fair Value As of December 31, 2021 Financial Liabilities: Revolving credit facility $ 15,000 $ — $ 15,000 $ — $ 15,000 Long-term debt: 4.25 % Convertible Senior Notes $ 23,885 $ — $ 33,248 $ — $ 33,248 3.90 % Promissory Note 9,287 — — 10,488 10,488 3.75 % Callable Promissory Note 7,153 — — 7,852 7,852 4.55 % Promissory Note 5,148 — — 6,051 6,051 Total long-term debt $ 45,473 $ — $ 33,248 $ 24,391 $ 57,639 |
Deferred Policy Acquisition Cos
Deferred Policy Acquisition Costs | 12 Months Ended |
Dec. 31, 2022 | |
Insurance [Abstract] | |
Deferred Policy Acquisition Costs | Note 7 -- Deferred Policy Acquisition Costs The following table summarizes the activity with respect to deferred policy acquisition costs: December 31, 2022 2021 Beginning balance $ 57,695 $ 43,858 Policy acquisition costs deferred 88,496 100,800 Amortization ( 100,669 ) ( 86,963 ) Ending balance $ 45,522 $ 57,695 The amount of policy acquisition costs amortized and included in policy acquisition and other underwriting expenses for the years ended December 31, 2022, 2021 and 2020 was $ 100,669 , $ 86,963 and $ 49,125 , respectively. As described in Note 1 -- “Nature of Operations” with regards to the quota share reinsurance agreements, the Company derecognized $ 1,349 of direct costs attributable to the assumption of insurance policies from United for the year ended December 31, 2022. The Company incurred $ 34,491 and $ 15,557 , respectively, of direct costs attributable to the assumption of insurance policies from United for the years ended December 31, 2021 and 2020 . |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | Note 8 -- Property and Equipment, Net Property and equipment, net consists of the following: December 31, 2022 2021 Land $ 2,134 $ 2,134 Land improvements 79 — Buildings and building improvements 6,550 4,005 Computer hardware and software 16,741 13,295 Office furniture and equipment 2,955 2,561 Tenant and leasehold improvements 782 620 Other 1,767 2,136 Total, at cost 31,008 24,751 Less: accumulated depreciation and amortization ( 13,098 ) ( 10,519 ) Property and equipment, net $ 17,910 $ 14,232 Depreciation and amortization expense for property and equipment was $ 2,580 , $ 1,941 and $ 1,854 , respectively, for the years ended December 31, 2022, 2021 and 2020 . |
Intangible Assets, Net
Intangible Assets, Net | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets, Net | Note 9 -- Intangible Assets, Net The Company’s intangible assets, net consist of the following: December 31, 2022 2021 Anchor tenant relationships (a) $ 1,761 $ 1,761 In-place leases 3,579 4,215 Policy renewal rights - United 10,100 7,634 Non-compete agreements - United (b) 314 195 Total, at cost 15,754 13,805 Less: accumulated amortization ( 5,176 ) ( 3,169 ) Intangible assets, net $ 10,578 $ 10,636 (a) An anchor tenant is a tenant that attracted more customers than other tenants. (b) $ 119 was fully amortized in June 2022 and $ 195 was fully amortized in June 2021. The remaining weighted-average amortization periods for the intangible assets as of December 31, 2022 are summarized in the table below: Anchor tenant relationships 11.5 years In-place leases 9.7 years Policy renewal rights - United 3.3 years In connection with the Northeast Region assumed business as described in Note 1 -- “Nature of Operations,” the Company recorded renewal rights and non-compete intangible assets aggregating $ 7,829 during 2021 in exchange for 100,000 shares of HCI’s common stock and a contingent liability of $ 2,419 . In connection with the Southeast Region assumed business as described in Note 1 -- “Nature of Operations,” the Company recorded intangible assets of $ 4,869 during 2022 representing the renewal rights and non-compete agreement in exchange for consideration consisting of a 6 % commission on any replacement premium which includes $ 3,800 of commission prepaid up-front and a contingent liability of $ 1,069 . During the fourth quarter of 2022, all available information pertaining to the Northeast and Southeast Regions’ policies in-force was reviewed. Furthermore, management engaged an independent valuation specialist to assess for possible impairment of the renewal rights intangible assets. Based on the review and the assessment, the Company recognized an impairment loss of $ 2,284 related to the renewal rights intangible assets and, simultaneously, recorded a decrease in contingent liabilities resulting in a remeasurement gain of $ 3,117 . At December 31, 2022 and 2021 , contingent liabilities related to renewal rights intangible assets were $ 371 and $ 2,419 , respectively, with the contingent liabilities included in other liabilities on the consolidated balance sheets. 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 purchases of the renewal rights and non-compete intangible assets as asset acquisitions. For the years ended December 31, 2022, 2021 and 2020 , amortization expense associated with intangible assets was $ 2,643 , $ 761 and $ 624 , respectively. Amortization expense for intangible assets after December 31, 2022 is as follows: Year Amount 2023 $ 2,763 2024 2,759 2025 2,728 2026 1,024 2027 212 Thereafter 1,092 Total $ 10,578 |
Other Assets
Other Assets | 12 Months Ended |
Dec. 31, 2022 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Assets | Note 10 -- Other Assets The following table summarizes the Company’s other assets: December 31, 2022 2021 Benefits receivable related to retrospective reinsurance contracts $ 16,317 $ 3,064 Reimbursement receivable under TPA service 5,445 3,525 Prepaid expenses 2,826 2,853 Deposits 491 406 Lease acquisition costs, net 832 505 Other 5,760 4,364 Total other assets $ 31,671 $ 14,717 Management reviewed the collectability of the reimbursement receivable under TPA service and other amounts receivable attributable to this service as of December 31, 2022 and, considering the subsequent collection of reimbursement receivable as well as the balance of funds withheld for assumed business as of December 31, 2022, determined that an allowance for credit losses is not necessary for the reimbursement receivable under TPA service or the other amounts receivable attributable to this service. |
Revolving Credit Facility
Revolving Credit Facility | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Revolving Credit Facility | Note 11 -- Revolving Credit Facility The Company has a secured revolving credit agreement (“Credit Agreement”) with Fifth Third Bank that expires on December 31, 2023 . On November 7, 2022, the Company executed the Fourth Amendment to Credit Agreement. Under the terms of this amendment, the maximum debt-to-capital ratio as defined in the Credit Agreement is set at 67.5 % and the borrowing capacity of the line of credit is set at $ 50,000 . On December 1, 2022, the Company executed the Fifth Amendment to Credit Agreement. Under the terms of this amendment, one of the Company’s properties was released from the collateral pool and borrowings bear interest at an annual rate equal to the one or three month Secured Overnight Financing Rate (“SOFR”) plus a ten basis points adjustment plus a margin based on the debt-to-capital ratio. The interest payment is due quarterly in arrears on January 1, April 1, July 1, and October 1. The Credit Agreement contains affirmative and negative covenants as well as customary events of default. Under the terms of the Credit Agreement, the Company must comply with certain financial and non-financial covenants and agree to pay a fee equal to the product of the unused line fee rate and the average of the daily unused available credit balances. The unused line fee rate is determined based on the debt-to-capital ratio as amended by the Fifth Amendment to Credit Agreement. In May 2022, the Company repaid the entire credit facility balance of $ 15,000 and at December 31, 2022 had no b orrowings outstanding under the credit facility. For the years ended December 31, 2022, 2021 and 2020 , interest expense was $ 227 , $ 189 and $ 501 , respectively, including $ 125 , $ 98 and $ 158 of amortization of issuance costs, respectively. At December 31, 2022, the Company was in compliance with all required covenants and had available borrowing capacity o f $ 50,000 . |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Note 12 -- Long-Term Debt The following table summarizes the Company’s long-term debt: December 31, 2022 2021 4.75 % Convertible Senior Notes, due June 1, 2042 $ 172,500 $ — 4.25 % Convertible Senior Notes, due March 1, 2037 23,916 23,916 3.90 % Promissory Note, due through April 1, 2032 9,072 9,431 3.75 % Callable Promissory Note, due through September 1, 2036 6,871 7,246 4.55 % Promissory Note, due through August 1, 2036 4,968 5,225 Finance lease liabilities, due through October 15, 2024 13 31 Total principal amount 217,340 45,849 Less: unamortized issuance costs ( 5,653 ) ( 345 ) Total long-term debt $ 211,687 $ 45,504 The following table summarizes future maturities of long-term debt as of December 31, 2022 , which takes into consideration the assumption that the 4.75 % Convertible Senior Notes and 4.25 % Convertible Senior Notes are repurchased at their respective next earliest call dates: Due in 12 months following December 31, 2022 $ 1,043 2023 1,075 2024 1,117 2025 1,163 2026 197,627 Thereafter 15,315 Total $ 217,340 Information with respect to interest expense related to long-term debt is as follows: Years Ended December 31, 2022 2021 2020 Interest Expense: Contractual interest $ 6,835 $ 5,384 $ 7,083 Non-cash expense (a) 706 827 4,247 Capitalized interest (b) — — ( 97 ) Total $ 7,541 $ 6,211 $ 11,233 (a) Includes amortization of debt discount and issuance costs. Amortization of debt discount discontinued effective January 1, 2021 upon the Company’s adoption of Accounting Standards Update No. 2020-06 (“ASU 2020-06”) “Debt - Debt with Conversion and Other Options and Derivatives and Hedging - Contracts in Entity’s Own Equity.” (b) Interest was capitalized for construction projects. Convertible Senior Notes The Company’s Convertible Senior Notes consist of 4.25 % Convertible Senior Notes that mature March 1, 2037 and 4.75 % Convertible Senior Notes that mature June 1, 2042 . The 4.25% Convertible Senior Notes were issued in March 2017 with cash interest payable semiannually in arrears on March 1 and September 1 of each year. In May 2022, the Company issued 4.75% Convertible Senior Notes in a private offering for an aggregate principal amount of $ 172,500 . The net proceeds of the 4.75% Convertible Senior Notes were $ 166,486 after $ 6,014 in related issuance and transaction costs. The cash interest for the 4.75% Convertible Senior Notes is payable semiannually in arrears on June 1 and December 1 of each year, beginning on December 1, 2022 . In conjunction with the issuance of the 4.75% Convertible Senior Notes, the Company entered into a share repurchase agreement providing for the repurchase of shares of the Company’s common stock. See Note 20 -- “Equity” under Share Repurchase Agreement for additional information. The Convertible Senior Notes rank equally in right of payment to the Company’s existing and future unsecured and unsubordinated obligations. The Convertible Senior Notes do not contain any financial or operating covenants or restrictions on the payments of dividends, the incurrence of indebtedness or the issuance or repurchase of securities by the Company or any of its subsidiaries. The Convertible Senior Notes provide no protection to the note holders in the event of a fundamental change or other corporate transaction involving the Company except those described in each respective indenture. The Convertible Senior Notes do not require a sinking fund to be established for the purpose of redemption. Embedded Conversion Feature The conversion feature of these Convertible Senior Notes is subject to conversion rate adjustments upon the occurrence of specified events (including payment of dividends above a specified amount) but will not be adjusted for any accrued and unpaid interest. 4.25% Convertible Senior Notes. When the Company’s cash dividends on common stock exceed $ 0.35 per share, it will result in adjustments to the conversion rate of the 4.25% Convertible Senior Notes. Accordingly, as of December 31, 2022 , the conversion rate of the Company’s 4.25 % Convertible Senior Notes was 16.5320 shares of common stock for each $1 in principal amount, which was the equivalent of approximately $ 60.49 per share. 4.75% Convertible Senior Notes. The conversion rate of the 4.75 % Convertible Senior Notes is currently 12.4166 shares of common stock for each $1 in principal amount, which is the equivalent of approximately $ 80.54 per share. The holders of the Convertible Senior Notes may convert all or a portion of their convertible senior notes during specified periods prior to each respective maturity date as follows: (1) during any calendar quarter commencing after the calendar quarter ending on the dates specified in each respective indenture, if the last reported sale price of the Company’s common stock for at least 20 trading days during the period of 30 consecutive trading days ending on the last trading day of the immediately preceding calendar quarter is greater than 130 % of the conversion price on each applicable trading day; (2) during the five business-day period after any ten consecutive trading-day period in which the trading price per $1 principal amount of the Convertible Senior Notes is less than 98 % of the product of the last reported sale price of the Company’s common stock and the conversion rate on each such trading day; (3) if specified corporate events, including a change in control, occur; (4) if the respective Convertible Senior Notes are called for redemption, at any time prior to the dates specified in each respective indenture; or (5) at any time on the dates or during the periods specified in each respective indenture. The note holders who elect to convert their Convertible Senior Notes in connection with a fundamental change as described in the indentures will be entitled to a “make-whole” adjustment in the form of an increase in the conversion rate. Upon conversion, the Company has options to satisfy its conversion obligation by paying or delivering cash, shares of its common stock or a combination of cash and shares of its common stock. As of December 31, 2022, none of the conditions allowing the holders of either class of Convertible Senior Notes to convert had been met. The Company determined that the Convertible Senior Notes’ embedded conversion feature is not a derivative financial instrument and does not require bifurcation. At issuance of the 4.25% Convertible Senior Notes, which was prior to the adoption of ASU 2020-06 “Debt - Debt with Conversion and Other Options and Derivatives and Hedging - Contracts in Entity’s Own Equity,” the Company accounted for the equity component of the embedded conversion feature as a reduction in the carrying amount of the debt and an increase in additional paid-in capital. Embedded Redemption Feature – Fundamental Change The note holders have the right to require the Company to repurchase for cash all or any portion of the Convertible Senior Notes at par prior to the maturity date should any of the fundamental change events described in the indentures occur. The Company concluded that this embedded redemption feature is not a derivative financial instrument, does not require bifurcation, and that it is not probable at issuance that any of the specified fundamental change events will occur. Therefore, this embedded redemption feature is not substantive and will not affect the expected life of the liability. Embedded Redemption Feature – Put Option of the Note Holder 4.25% Convertible Senior Notes. At the option of the holders of the 4.25% Convertible Senior Notes, the Company is required to repurchase for cash all or any portion of the 4.25% Convertible Senior Notes at par on March 1, 2022 , March 1, 2027 or March 1, 2032 . The Company amortized the issuance costs associated with the 4.25% Convertible Senior Notes over the period from March 3, 2017 to March 1, 2022. The debt issuance costs for the 4.25% Convertible Senior Notes had been fully amortized as of February 2022. 4.75% Convertible Senior Notes. At the option of the holders of the 4.75% Convertible Senior Notes, the Company is required to repurchase for cash all or any portion of the 4.75% Convertible Senior Notes at par on June 1, 2027 , June 1, 2032 or June 1, 2037 . The Company amortizes the issuance costs associated with the 4.75% Convertible Senior Notes over the period from May 23, 2022 to June 1, 2027. As of December 31, 2022 , the remaining amortization period of the debt issuance costs was expected to be 4.4 years for the 4.75% Convertible Senior Notes. The Company concluded that this embedded feature is not a derivative financial instrument and does not require bifurcation. Due to this provision, the Company determined that it is appropriate to amortize the debt issuance costs from the date each debt is issued to the earliest date at which the holders of the respective Convertible Senior Notes can demand payment. The effective interest rate for the 4.75% Convertible Senior Notes, taking into account both cash and non-cash components, approximates 5.6 %. Had a 20-year term been used for the amortization of the issuance costs of the 4.75% Convertible Senior Notes, the annual effective interest rate charged to earnings would have decreased to approximately 5.0 %. Promissory Notes 3.90% Promissory Note The agreement bears interest at a fixed rate of 3.90 % and is secured by the Company’s shopping center property in Melbourne, Florida and the assignment of associated lease agreements. Approximately $ 60 of principal and interest is payable in 143 monthly installments beginning May 1, 2020 plus a final balloon payment of $ 5,007 including principal and unpaid interest payable on April 1, 2032 . The promissory note may be repaid in full at any time as long as the Company provides at least 60 days’ written notice and pays a prepayment premium and processing fee . 3.75% Callable Promissory Note The loan bears interest at a fixed annual rate of 3.75 % and is collateralized by a retail shopping center in Sorrento, Florida and the lease agreements associated with this property. Approximately $ 53 of principal and interest is payable in 240 monthly installments. The promissory note may be repaid in full as long as the Company provides at least 60 days’ written notice and pays a prepayment premium as specified in the loan agreement. In addition, the lender may require full payment of the outstanding principal and unpaid interest on September 1, 2031 provided a written notice of its intention to call the note is given at least six months in advance . 4.55% Promissory Note The loan agreement is secured by commercial real estate in Tampa, Florida and an associated lease agreement. The loan bears interest at a fixed annual rate of 4.55 %. Approximately $ 41 of principal and interest is payable in 216 monthly installments. The promissory note may be repaid in full or in part after September 1, 2020 as long as the Company provides at least 30 days’ written notice and pays a prepayment consideration as specified in the loan agreement . |
Reinsurance
Reinsurance | 12 Months Ended |
Dec. 31, 2022 | |
Insurance [Abstract] | |
Reinsurance | Note 13 -- Reinsurance Reinsurance obtained from other insurance companies The Company cedes a portion of its homeowners’ insurance exposure to other entities under catastrophe excess of loss reinsurance contracts and a portion of its flood insurance exposure under 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 and a profit commission equal to 10 % of net profit. 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 1st 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: Years Ended December 31, 2022 2021 2020 Premiums Written: Direct $ 713,103 $ 545,441 $ 459,615 Assumed 12,916 128,948 44,539 Gross written 726,019 674,389 504,154 Ceded ( 261,144 ) ( 199,741 ) ( 153,458 ) Net premiums written $ 464,875 $ 474,648 $ 350,696 Premiums Earned: Direct $ 651,455 $ 478,546 $ 412,999 Assumed 73,261 98,498 2,919 Gross earned 724,716 577,044 415,918 Ceded ( 261,144 ) ( 199,741 ) ( 153,458 ) Net premiums earned $ 463,572 $ 377,303 $ 262,460 During the years ended December 31, 2022, 2021, and 2020 , ceded losses of $ 812,623 , $ 40,432 , and $ 9,413 , respectively, were recognized as reductions in losses and loss adjustment expenses. Ceded losses related to Hurricane Ian, Hurricane Irma, Tropical Storm Eta, and other catastrophe and non-catastrophe claims were $ 782,071 , $ 20,000 , $ 10,483 , and $ 69 , respectively, for 2022. For 2021, ceded losses related to Hurricane Irma, Hurricane Sally, and other non-catastrophe claims wer e $ 32,144 , $ 4,434 , and $ 3,854 , respectively. Ceded losses related to Hurricane Irma, Hurricane Michael, Hurricane Sally, and other non-catastrophe claims were $ 362 , $ 4,000 , $ 88 , and $ 4,963 , respectively, for 2020. At December 31, 2022 and 2021 , there were 45 and 55 reinsurers, respectively, participating in the Company’s reinsurance program. Total net amounts recoverable and receivable from reinsurers at December 31, 2022 and 2021 were $ 688,359 and $ 76,650 , respectively. Approximately 65.6 % of the reinsurance recoverable balance at December 31, 2022 was receivable from three reinsurers, one of which was the Florida Hurricane Catastrophe Fund, a tax-exempt state trust fund. Based on all available information considered in the rating-based method described in Note 2 -- “Summary of Significant Accounting Policies,” the Company recognized an increase in credit loss expense of $ 364 for the year ended December 31, 2022 . Allowances for credit losses related to the reinsurance recoverable balance were $ 454 and $ 90 at December 31, 2022 and 2021, respectively. Due to Hurricane Ian, the Company’s first event reinsurance coverage for flood losses was exhausted, and accordingly, the Company can no longer cede additional flood losses from Hurricane Ian to reinsurers. As a result, the Company elected to pay reinstatement premiums of $ 6,684 to the reinsurers to restore the full amount of coverage. The unamortized first event reinsurance premiums of $ 3,306 were written off and charged to premiums ceded during the fourth quarter of 2022. See Note 14 -- “Losses and Loss Adjustment Expenses” for more information about the flood losses attributable to Hurricane Ian. One of the existing reinsurance contracts includes retrospective provisions that adjust premiums in the event losses are minimal or zero. Prior to June 1, 2022, there were two reinsurance contracts with retrospective provisions. As a result of Hurricane Ian, the balance of previously accrued benefits under the multi-year reinsurance contract with retrospective provisions was decreased by $ 12,600 in September 2022. For the years ended December 31, 2022, 2021 and 2020 , the Company recognized reductions in premiums ceded of $ 18,710 , $ 10,864 and $ 15,120 , respectively. See Note 23 -- “Commitments and Contingencies” for additional information. Amounts receivable pursuant to retrospective provisions are reflected in other assets. At December 31, 2022 and 2021 , other assets included $ 16,317 and $ 3,064 , respectively. In October 2022, the Company received $ 5,457 of premium refund under the Company’s previous two multi-year reinsurance contracts which were commuted effective May 31, 2022. Management believes the credit risk associated with the collectability of these accrued benefits is minimal as the amount receivable is concentrated with one reinsurer with a good credit rating and the Company monitors the creditworthiness of this reinsurer based on available information about the reinsurer’s financial condition. Reinsurance provided to other insurance companies For the year ended December 31, 2022, $ 27,488 of assumed premiums written related to the Northeast Region’s insurance policies were derecognized, which primarily resulted from the return of the unearned portion of assumed written premiums subsequent to the Company’s renewal and/or replacement of insurance policies in Massachusetts and New Jersey, whereas for the year ended December 31, 2021, assumed premiums written related to the Northeast Region’s insurance policies were $ 93,607 . At December 31, 2022 , the Company had a net balance of $ 1,581 due to United related to the Northeast Region, consisting of payable on paid losses and loss adjustment expenses of $ 1,000 and ceding commission payable of $ 581 . At December 31, 2021 , the Company had a net balance of $ 4,486 due to United related to the Northeast Region, consisting of payable on paid losses and loss adjustment expenses of $ 4,017 and ceding commission payable of $ 535 , offset by premiums receivable of $ 66 . Effective December 30, 2022, the Company’s quota share reinsurance agreement to provide 100% reinsurance on United’s policies in the Northeast Region was commuted. Effective December 31, 2021, the Company entered into a separate agreement to provide 85% quota share reinsurance on United’s personal lines insurance policies in the states of Georgia, South Carolina and North Carolina through May 31, 2022. Effective June 1, 2022, the Company entered into a new agreement to provide 100% quota share reinsurance on United’s personal lines insurance policies in the Southeast Region. For the years ended December 31, 2022 and 2021 , assumed premiums written related to the Southeast Region’s insurance policies were $ 40,404 and $ 35,341 , respectively. At December 31, 2022 , the Company had a net balance of $ 7,521 due to United related to the Southeast Region, consisting of payable on paid losses and loss adjustment expenses of $ 7,606 and ceding commission payable of $ 16 , offset by premiums receivable of $ 101 . At December 31, 2021, there was an amount receivable from United of $ 23,325 related to the Southeast Region, net of a ceding commission of $ 8,835 and a catastrophe cost allowance of $ 3,181 . At December 31, 2022 and 2021 , the balance of funds withheld for assumed business related to the Company’s quota share reinsurance agreements with United was $ 48,772 and $ 73,716 , respectively. The ratio of assumed premiums earned to net premiums earned for the years ended December 31, 2022, 2021 and 2020 was 15.80 %, 26.11 %, and 1.11 %, respectively. |
Losses and Loss Adjustment Expe
Losses and Loss Adjustment Expenses | 12 Months Ended |
Dec. 31, 2022 | |
Insurance [Abstract] | |
Losses and Loss Adjustment Expenses | Note 14 -- Losses and Loss Adjustment Expenses The Company establishes reserves for the estimated total unpaid costs of losses including LAE. Loss and LAE reserves reflect management’s best estimate of the total cost of (i) claims that have been incurred, but not yet paid in full, and (ii) claims that have been incurred but not yet reported to the Company (“IBNR”). Reserves established by management represent an estimate of the outcome of future events and, as such, cannot be considered an exact calculation of our liability. Rather, loss and LAE reserves represent management’s best estimate of the Company’s liability based on the application of actuarial techniques and other projection methodologies and taking into consideration other facts and circumstances known at the balance sheet date. The process of establishing loss and LAE reserves is complex and inherently imprecise, as it involves the estimation of the outcome of future uncertain events. The impact of both internal and external variables on ultimate losses and LAE costs is difficult to estimate. In determining loss and LAE reserves, the Company gives careful consideration to all available data and actuarial analyses. When a claim is reported to the Company, the claims personnel establish a “case reserve” for the estimated amount of the ultimate amount payable to settle the claim. This estimate reflects an informed judgment based upon general insurance reserving practices and on the experience and knowledge of the claims adjuster. The individual estimating the reserve considers the nature and value of the specific claim, the severity of injury or damage, location, and the policy provisions relating to the type of loss. Case reserves are adjusted as more information becomes available. It is the Company’s policy to settle each claim as expeditiously as possible. Reserves are closely monitored and are recalculated periodically using the most recent information on reported claims and a variety of actuarial techniques. Specifically, claims management personnel complete weekly and ongoing reviews of existing case reserves, new claims, changes to existing case reserves, and paid losses with respect to the current and prior years. As the Company continues to expand historical data regarding paid and incurred losses, the data is used to develop expected ultimate loss and LAE ratios, then these expected loss and LAE ratios are applied to earned premium to derive a reserve level for each line of business. In connection with the determination of these reserves, other specific factors such as recent weather-related losses, trends in historical reported and paid losses, and litigation and judicial trends regarding liability will also be considered. Therefore, the loss ratio method, among other methods, is used to project an ultimate loss expectation, and then the related loss history must be regularly evaluated and loss expectations updated, with the possibility of variability from the initial estimate of ultimate losses. The Company maintains IBNR reserves to provide for claims that have been incurred but have not been reported and subsequent development on reported claims. The IBNR reserve is determined by estimating the Company’s ultimate net liability for both reported and unreported claims and then subtracting the case reserves and payments made to date for reported claims. Loss and LAE Reserve Estimation Methods. The Company applies the following general methods in projecting reserves for losses and LAE: • Reported loss development; • Paid loss development; • Paid Bornhuetter-Ferguson method; • Reported Experience-Modified Bornhuetter-Ferguson method; • Paid Experience-Modified Bornhuetter-Ferguson method; • Loss ratio method; • Several variations of the Frequency-Severity method, depending on exposure; and • A factor load to loss and allocated LAE reserves for the unallocated LAE. Selected reserves are based on a review of the indications from these methods as well as other considerations such as emergence since the most recent evaluation and number of open claims for a given accident period. Currently, the estimated ultimate liability is calculated using the principles and procedures described above, which are applied to the lines of business written. However, because the establishment of loss and LAE reserves is an inherently uncertain process, ultimate losses and LAE may exceed the established loss and LAE reserves and have a material, adverse effect on our results of operations and financial condition. Changes in estimates, or differences between estimates and amounts ultimately paid, are reflected in the operating results of the period during which such adjustments are made. The Company’s reported results, financial position and liquidity would be affected by likely changes in key assumptions that determine the net loss reserves. However, it is believed that a reasonably likely increase or decrease in the severity of claims could impact our net loss reserves. Activity in the liability for losses and LAE is summarized as follows: Years Ended December 31, 2022 2021 2020 Net balance, beginning of year* $ 172,410 $ 141,065 $ 98,174 Incurred, net of reinsurance, related to: Current year 330,836 199,888 158,236 Prior years 40,627 27,637 1,800 Total incurred, net of reinsurance 371,463 227,525 160,036 Paid, net of reinsurance, related to: Current year ( 169,641 ) ( 95,809 ) ( 71,772 ) Prior years ( 127,686 ) ( 100,371 ) ( 45,373 ) Total paid, net of reinsurance ( 297,327 ) ( 196,180 ) ( 117,145 ) Net balance, end of year 246,546 172,410 141,065 Add: reinsurance recoverable before allowance for credit losses 617,219 64,755 71,104 Gross balance, end of year $ 863,765 $ 237,165 $ 212,169 * Net balance represents beginning-of-year liability for unpaid losses and LAE less beginning-of-year 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 adjustments are adjusted. During the year ended December 31, 2022 , the Company recognized losses related to prior years of $ 40,627 primarily to increase reserves in response to increased litigation. On September 28, 2022, Hurricane Ian made landfall in southwestern Florida as a dangerous, high-end Category 4 storm. After crossing the Florida peninsula, it made a second landfall on September 30, 2022 in coastal South Carolina. Gross losses and LAE related to Hurricane Ian were estimated at $ 847,500 for all insurance lines of business, including $ 452,050 for HCPCI Insurance Operations and $ 395,450 for TypTap. After reinsurance recoveries, losses and LAE retained by the Company were approximately $ 65,300 for the year ended December 31, 2022. Of the total losses and LAE retained by the Company, $ 7,000 was attributable to flood losses exceeding the maximum amount of coverage provided by reinsurers. As a result, the Company will be responsible for covering additional losses if the flood ultimate losses are later revised upward. Losses and LAE for the 2022 loss year included net estimated losses of approximately $ 81,651 related to United policies assumed, renewed and/or replaced and $ 6,500 related to Hurricane Nicole. The following is information about incurred and paid claims development as of December 31, 2022, net of reinsurance, as well as cumulative claim frequency and the total of incurred-but-not-reported liabilities plus expected development on reported claims included within the net incurred claims amounts. The information about incurred and paid claims development for the years ended December 31, 2015 to 2013 is presented as supplementary information and is unaudited. Homeowners Multi-peril and Dwelling Fire Insurance (a) As of December 31, 2022 Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance Total of Cumulative Year 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Claims Amounts) (b) 2013 $ 67,579 $ 69,932 $ 69,906 $ 72,015 $ 71,604 $ 73,763 $ 74,043 $ 74,543 $ 74,543 $ 74,454 $ 14 7,009 2014 — 75,810 81,773 84,917 88,053 90,084 92,454 92,945 93,181 93,358 372 7,661 2015 — — 78,017 90,902 96,173 101,272 102,149 102,587 103,135 103,671 266 7,665 2016 — — — 81,446 90,879 92,684 92,986 92,752 92,333 92,738 371 6,936 2017 — — — — 91,443 88,937 89,652 90,958 90,877 90,652 1,265 5,776 2018 — — — — — 79,436 83,976 83,123 83,234 82,816 3,569 4,771 2019 — — — — — — 95,467 94,018 96,821 99,754 7,916 5,401 2020 — — — — — — — 126,086 133,349 159,758 15,460 8,253 2021 — — — — — — — — 187,164 186,606 44,550 11,754 2022 — — — — — — — — — 263,626 127,833 12,563 Total $ 1,247,433 Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance Year 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2013 $ 40,240 $ 57,374 $ 64,257 $ 68,106 $ 70,224 $ 72,492 $ 73,420 $ 73,986 $ 74,260 $ 74,440 2014 — 47,650 68,897 77,712 82,463 87,125 90,707 92,264 92,924 92,986 2015 — — 50,939 76,042 87,784 95,179 99,200 101,424 102,486 103,405 2016 — — — 51,663 73,037 83,311 89,144 90,989 92,001 92,367 2017 — — — — 43,039 66,996 78,808 83,383 86,364 89,387 2018 — — — — — 41,014 63,958 71,809 76,311 79,247 2019 — — — — — — 47,471 70,182 81,941 91,839 2020 — — — — — — — 56,173 108,388 144,298 2021 — — — — — — — — 85,895 142,054 2022 — — — — — — — — — 135,793 Total $ 1,045,816 All outstanding liabilities before 2013, net of reinsurance 10 Liabilities for loss and LAE, net of reinsurance $ 201,627 (a) Excludes losses from Wind-only insurance (2013 through 2022) and any hurricane and storm events prior to 2022. (b) The cumulative number of reported claims is measured as the number of per-policyholder, per-event claims for all coverages regardless of whether the claim results in loss or expense to the Company. Homeowners Wind-only Insurance (a) * As of December 31, 2022 Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance Total of Cumulative Year 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Claims Amounts) (b) 2015 $ — $ — $ 308 $ 401 $ 569 $ 692 $ 605 $ 582 $ 582 $ 582 $ — 100 2016 — — — 1,005 1,314 1,814 1,853 1,837 2,255 1,948 4 228 2017 — — — — 1,529 1,119 815 792 923 991 199 157 2018 — — — — — 798 708 1,061 1,109 1,226 302 137 2019 — — — — — — 1,132 1,501 1,833 2,359 589 154 2020 — — — — — — — 1,621 1,970 3,386 951 193 2021 — — — — — — — — 682 1,257 458 114 2022 — — — — — — — — — 1,284 580 122 Total $ 13,033 Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance Year 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2015 $ — $ — $ 156 $ 332 $ 465 $ 582 $ 582 $ 582 $ 582 $ 582 2016 — — — 689 1,155 1,405 1,772 1,821 1,843 1,944 2017 — — — — 484 786 789 792 792 792 2018 — — — — — 216 607 745 899 925 2019 — — — — — — 828 1,290 1,451 1,770 2020 — — — — — — — 567 1,461 2,435 2021 — — — — — — — — 415 799 2022 — — — — — — — — — 704 Total $ 9,951 Liabilities for loss and LAE, net of reinsurance $ 3,082 * The Company began writing Homeowners Wind-only insurance in 2015. (a) Excludes losses from multi-peril and dwelling fire insurance (2013 through 2022) and any hurricane and storm events prior to 2022. (b) The cumulative number of reported claims is measured as the number of per-policyholder, per-event claims for all coverages regardless of whether the claim results in loss or expense to the Company. Losses Specific to Any Hurricane and Storm Events prior to 2022 As of December 31, 2022 Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance Total of Cumulative Year 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Claims Amounts) (b) 2016 $ — $ — $ — $ 21,414 $ 24,126 $ 26,211 $ 28,133 $ 27,634 $ 27,634 $ 27,634 $ 488 2,420 2017 — — — — 53,602 54,080 53,557 53,624 53,628 53,636 2 21,776 2018 — — — — — 16,543 16,532 16,532 16,532 16,476 — 1,719 2019 — — — — — — — — — — — 144 2020 — — — — — — — 30,264 46,284 55,235 8,179 3,291 2021 — — — — — — — — 11,689 13,000 384 2,597 2022 — — — — — — — — — — — 11 Total $ 165,981 Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance Year 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2016 $ — $ — $ — $ 12,227 $ 20,025 $ 23,316 $ 25,849 $ 26,098 $ 26,807 $ 27,146 2017 — — — — 43,905 47,514 47,524 49,425 53,216 53,634 2018 — — — — — 13,391 15,992 16,436 16,477 16,476 2019 — — — — — — — — — — 2020 — — — — — — — 14,964 34,771 47,056 2021 — — — — — — — — 9,323 12,616 2022 — — — — — — — — — — Total $ 156,928 Liabilities for loss and LAE, net of reinsurance $ 9,053 (b) The cumulative number of reported claims is measured as the number of per-policyholder, per-event claims for all coverages regardless of whether the claim results in loss or expense to the Company. Losses Specific to Hurricane Ian ( 2022) As of December 31, 2022 Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance Total of Cumulative Year 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Claims Amounts) (b) 2022 $ — $ — $ — $ — $ — $ — $ — $ — $ — $ 65,325 $ 32,327 12,861 Total $ 65,325 Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance Year 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2022 $ — $ — $ — $ — $ — $ — $ — $ — $ — $ 32,998 Total $ 32,998 Liabilities for loss and LAE, net of reinsurance $ 32,327 (b) The cumulative number of reported claims is measured as the number of per-policyholder, per-event claims for all coverages regardless of whether the claim results in loss or expense to the Company. The reconciliation of the net incurred and paid loss development tables to the liability for losses and loss adjustment expenses is as follows: December 31, 2022 2021 Net outstanding liabilities Homeowners multi-peril and dwelling fire insurance $ 201,627 $ 155,147 Homeowners Wind-only insurance 3,082 1,911 Losses specific to any hurricane and storm events prior to 2022 9,053 15,172 Losses specific to Hurricane Ian (2022) 32,327 — Other short-duration insurance lines 457 180 Liabilities for unpaid losses and loss adjustment expenses, net of reinsurance 246,546 172,410 Reinsurance recoverables 617,219 64,755 Total gross liability for unpaid losses and loss adjustment expenses $ 863,765 $ 237,165 The following is supplementary and unaudited information about average historical claims duration as of December 31, 2022: Average Annual Percentage Payout of Incurred Losses by Age, Net of Reinsurance Years 1 2 3 4 5 6 7 8 9 10 Homeowners multi-peril and dwelling fire 48.1 % 22.4 % 8.9 % 3.6 % 0.2 % 1.1 % 0.4 % 0.0 % 0.0 % 0.0 % Homeowners Wind-only insurance 31.2 % 23.6 % 12.7 % 7.4 % 0.1 % 0.2 % 0.8 % 0.0 % * * Other short-duration insurance lines 55.7 % 24.7 % 2.0 % 0.0 % 0.0 % 0.0 % 0.0 % — — — Losses specific to any hurricane and storm 56.5 % 22.0 % 9.9 % 2.7 % 2.5 % 0.7 % 0.2 % — — — Losses specific to Hurricane Ian (2022) 50.5 % — — — — — — — — — * The Company began writing Homeowners Wind-only insurance in 2015. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Segment Information | Note 15 -- Segment Information The Company identifies its operating divisions 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 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 years ended December 31, 2022, 2021 and 2020, revenues from the HCPCI insurance operations segment before intracompany elimination represent ed 66.1 %, 74.6 % and 73.4 %, respectively, and revenues from the TypTap Group segment represented 29.9 %, 22.7 %, and 15.5 %, respectively, of total revenues of all operating seg ments. At December 31, 2022 and 2021 , HCPCI insurance operations’ total assets represented 53.4 % an d 58.7 %, respectively, and TypTap Group’s total assets repre sented 37.9 % an d 29.3 %, respectively, of the combined assets of all operating segments. See Note 1 -- “Nature of Operations” for a description of the Company’s operations. 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. For the Year Ended December 31, 2022 HCPCI TypTap Real Corporate/ Reclassification/ Consolidated Revenue: Gross premiums earned (c) $ 439,499 $ 298,215 $ — $ — $ ( 12,998 ) $ 724,716 Premiums ceded ( 162,112 ) ( 110,299 ) — — 11,267 ( 261,144 ) Net premiums earned 277,387 187,916 — — ( 1,731 ) 463,572 Net income from investment portfolio 1,641 3,991 — 2,736 15,739 24,107 Policy fee income 2,482 1,797 — — — 4,279 Gain on involuntary conversion — — 13,402 — ( 13,402 ) — Gain from remeasurement of contingent liabilities 585 2,532 — — — 3,117 Other 25,155 2,302 10,365 3,752 ( 37,086 ) 4,488 Total revenue 307,250 198,538 23,767 6,488 ( 36,480 ) 499,563 Expenses: Losses and loss adjustment expenses 204,549 173,828 — — ( 6,914 ) 371,463 Amortization of deferred policy acquisition costs 56,841 43,828 — — — 100,669 Other policy acquisition expenses 2,557 1,905 — — ( 154 ) 4,308 Stock-based compensation expense 3,879 3,512 — 7,716 — 15,107 Interest expense — 883 892 6,875 ( 882 ) 7,768 Depreciation and amortization 626 3,185 2,501 868 ( 2,401 ) 4,779 Impairment loss 652 1,632 — — — 2,284 Personnel and other operating expenses 44,752 31,548 4,884 6,548 ( 26,129 ) 61,603 Total expenses 313,856 260,321 8,277 22,007 ( 36,480 ) 567,981 (Loss) income before income taxes $ ( 6,606 ) $ ( 61,783 ) $ 15,490 $ ( 15,519 ) $ — $ ( 68,418 ) Total revenue from non-affiliates (d) $ 273,222 $ 207,728 $ 22,413 $ 3,937 Gross premiums written $ 377,860 $ 348,159 (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) Gross premiums earned under HCPCI Insurance Operations consist of $ 426,501 from HCPCI and $ 12,998 from a reinsurance company. (d) Represents amounts before reclassification of certain revenue and expenses to conform with an insurance company’s presentation. For the Year Ended December 31, 2021 HCPCI TypTap Real Corporate/ Reclassification/ Consolidated Revenue: Gross premiums earned (c) $ 404,362 $ 175,907 $ — $ — $ ( 3,225 ) $ 577,044 Premiums ceded ( 140,902 ) ( 61,534 ) — — 2,695 ( 199,741 ) Net premiums earned 263,460 114,373 — — ( 530 ) 377,303 Net income from investment portfolio 8,130 1,306 — 6,613 4,121 20,170 Policy fee income 2,794 1,201 — — — 3,995 Other 6,356 1,606 12,226 1,794 ( 15,535 ) 6,447 Total revenue 280,740 118,486 12,226 8,407 ( 11,944 ) 407,915 Expenses: Losses and loss adjustment expenses 147,198 80,863 — — ( 536 ) 227,525 Amortization of deferred policy acquisition costs 56,470 30,493 — — — 86,963 Other policy acquisition expenses 2,851 4,100 — — — 6,951 Stock-based compensation expense 3,553 3,380 — 6,821 — 13,754 Interest expense — 113 1,202 5,467 ( 382 ) 6,400 Depreciation and amortization 86 1,336 2,319 884 ( 2,441 ) 2,184 Debt conversion expense — — — 1,754 — 1,754 Personnel and other operating expenses 20,647 28,357 4,424 6,308 ( 8,585 ) 51,151 Total expenses 230,805 148,642 7,945 21,234 ( 11,944 ) 396,682 Income (loss) before income taxes $ 49,935 $ ( 30,156 ) $ 4,281 $ ( 12,827 ) $ — $ 11,233 Total revenue from non-affiliates (d) $ 277,333 $ 119,703 $ 10,872 $ 7,406 Gross premiums written $ 426,910 $ 247,479 (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) Gross premiums earned under HCPCI Insurance Operations consist of $ 401,137 from HCPCI and $ 3,225 from a reinsurance company. (d) Represents amounts before reclassification of certain revenue and expenses to conform with an insurance company’s presentation. For the Year Ended December 31, 2020 HCPCI TypTap Real Corporate/ Reclassification/ Consolidated Revenue: Gross premiums earned (c) $ 342,764 $ 78,836 $ — $ — $ ( 5,682 ) $ 415,918 Premiums ceded ( 130,318 ) ( 28,822 ) — — 5,682 ( 153,458 ) Net premiums earned 212,446 50,014 — — — 262,460 Net income from investment portfolio 6,423 793 3 15 ( 1,602 ) 5,632 Policy fee income 2,702 820 — — — 3,522 Gain on involuntary conversion — — 36,969 — — 36,969 Other 1,768 100 9,502 1,948 ( 11,464 ) 1,854 Total revenue 223,339 51,727 46,474 1,963 ( 13,066 ) 310,437 Expenses: Losses and loss adjustment expenses 125,977 34,059 — — — 160,036 Amortization of deferred policy acquisition costs 35,410 13,715 — — — 49,125 Other policy acquisition expenses 3,496 1,865 — — — 5,361 Stock-based compensation expense 1,645 1,808 — 4,680 — 8,133 Interest expense — 2 1,947 10,709 ( 924 ) 11,734 Depreciation and amortization 85 1,102 2,526 634 ( 2,494 ) 1,853 Loss on repurchases of convertible senior notes — — — 150 — 150 Loss on extinguishment of debt — — 98 — — 98 Personnel and other operating expenses 17,778 15,637 5,388 7,864 ( 9,648 ) 37,019 Total expenses 184,391 68,188 9,959 24,037 ( 13,066 ) 273,509 Income (loss) before income taxes $ 38,948 $ ( 16,461 ) $ 36,515 $ ( 22,074 ) $ — $ 36,928 Total revenue from non-affiliates (d) $ 221,633 $ 52,807 $ 44,709 $ 640 Gross premiums written $ 399,299 $ 104,855 (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 under HCPCI Insurance Operations consist of $ 337,082 from HCPCI and $ 5,682 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 on the consolidated balance sheets: December 31, 2022 2021 Segments: HCPCI Insurance Operations $ 912,233 $ 676,509 TypTap Group 704,429 369,600 Real Estate Operations 126,001 127,651 Corporate and Other 159,378 65,349 Consolidation and Elimination ( 98,713 ) ( 62,252 ) Total assets $ 1,803,328 $ 1,176,857 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Leases | Note 16 -- Leases The table below summarizes the Company’s ROU assets and corresponding liabilities for operating and finance leases: December 31, 2022 2021 Operating leases: ROU assets $ 777 $ 2,204 Liabilities $ 721 $ 2,203 Finance leases: ROU assets $ 80 $ 86 Liabilities $ 13 $ 31 The Company’s lease of office space in India for its information technology operations expired in January 2022 and a new lease agreement was entered into effective February 2022 with an initial term of nine years . In December 2022, the Company notified the FDOT of the election to terminate one of the operating leases for office space effective January 31, 2023, resulting in a derecognition of the ROU assets and its corresponding liabilities by $ 553 . 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 51 months Yes (a), (b) Office space 3 to 9 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 December 31, 2022, maturities of lease liabilities were as follows: Leases Operating Finance Due in Year 2023 $ 110 $ 11 2024 91 2 2025 96 — 2026 101 — 2027 106 — Thereafter 361 — Total lease payments 865 13 Less: interest 144 — Total lease obligations $ 721 $ 13 The following table provides quantitative information with regards to the Company’s operating and finance leases: Years Ended December 31, 2022 2021 Lease costs: Finance lease costs: Amortization – ROU assets* $ 16 $ 19 Interest expense 1 1 Operating lease costs* 1,219 1,622 Short-term lease costs* 408 348 Total lease costs $ 1,644 $ 1,990 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows – finance leases $ 1 $ 1 Operating cash flows – operating leases $ 1,194 $ 1,626 Financing cash flows – finance leases $ 18 $ 19 December 31, 2022 Weighted-average remaining lease term: Finance leases (in years) 1.1 Operating leases (in years) 7.9 Weighted-average discount rate: Finance leases (%) 3.4 % Operating leases (%) 4.5 % * Included in other operating expenses on the consolidated statements of income. The following table summarizes the Company’s operating leases in which the Company is a lessor: Renewal Other Terms Class of Assets Initial Term Option and 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 | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 17 -- Income Taxes A summary of income tax (benefit) expense is as follows: Years Ended December 31, 2022 2021 2020 Current: Federal $ ( 3,853 ) $ 2,332 $ 1,089 State ( 275 ) 415 30 Foreign 194 102 106 Total current taxes ( 3,934 ) 2,849 1,225 Deferred: Federal ( 7,828 ) 489 6,694 State ( 2,023 ) 653 1,436 Foreign ( 30 ) — ( 7 ) Total deferred taxes ( 9,881 ) 1,142 8,123 Income tax (benefit) expense $ ( 13,815 ) $ 3,991 $ 9,348 The reasons for the differences between the statutory federal income tax rate and the effective tax rate are summarized as follows: Years Ended December 31, 2022 2021 2020 Amount % Amount % Amount % Income taxes at statutory rate $ ( 14,368 ) 21.0 $ 2,359 21.0 $ 7,755 21.0 (Decrease) increase in income taxes State income taxes, net of federal ( 2,812 ) 4.1 402 3.6 1,364 3.7 Effects of tax rate changes — — 437 3.9 — — Stock-based compensation ( 431 ) 0.6 ( 298 ) ( 2.7 ) ( 296 ) ( 0.8 ) Non-deductible executive compensation 1,252 ( 1.8 ) 1,008 9.0 757 2.0 Change in valuation allowance 2,549 ( 3.7 ) — — — — Other ( 5 ) — 83 0.7 ( 232 ) ( 0.6 ) Income tax (benefit) expense $ ( 13,815 ) 20.2 $ 3,991 35.5 $ 9,348 25.3 The Company has no uncertain tax positions or unrecognized tax benefits that, if recognized, would impact the effective income tax rates for the years ended December 31, 2022, 2021, and 2020 . The tax returns filed for the years ending December 31, 2021, 2020, and 2019 remain subject to examination by the Company’s major taxing jurisdictions. The Company elected to classify interest and penalties, if any, arising from uncertain tax positions as income tax expense as permitted by current accounting standards. There have been no material amounts of interest or penalties for the years ended December 31, 2022, 2021 and 2020. For the year ended December 31, 2022, the Company recorded $ 13,815 of income tax benefit resulting in an effective tax rate of 20.2 %. For the years ended December 31, 2021 and 2020, the Company recorded income tax expense of $ 3,991 and $ 9,348 , respectively, resulting in effective tax rates of 35.5 % and 25.3 %, respectively. The decrease in the effective tax rate in 2022 as compared with 2021 was primarily attributable to a valuation allowance established as of December 31, 2022 and an increase in non-deductible compensation expense related to restricted stock and stock options granted to certain executives. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s net deferred income tax liabilities are as follows: December 31, 2022 2021 Deferred tax assets: Net operating loss carryforwards $ 13,883 $ — Unearned premiums 12,588 14,174 Losses and loss adjustment expenses 3,013 2,591 Stock-based compensation 1,570 1,660 Prepaid expenses — 658 Unearned revenue 426 237 Net unrealized investment losses 428 — Basis difference related to convertible senior notes 300 169 Accrued expenses 163 110 Credit losses 244 151 Organizational costs 128 102 Bad debt reserve 44 56 Other 85 — Total deferred tax assets 32,872 19,908 Valuation allowance ( 2,549 ) — Total deferred tax assets, net of valuation allowance 30,323 19,908 Deferred tax liabilities: Gain on involuntary conversion ( 12,500 ) ( 9,202 ) Deferred policy acquisition costs ( 12,156 ) ( 15,089 ) Intangible assets ( 1,878 ) ( 2,450 ) Basis difference related to partnership investments ( 2,942 ) ( 1,313 ) Prepaid expenses ( 703 ) — Net unrealized investment gains — ( 1,539 ) Property and equipment ( 1,515 ) ( 1,511 ) Other ( 333 ) ( 543 ) Total deferred tax liabilities ( 32,027 ) ( 31,647 ) Net deferred tax liabilities $ ( 1,704 ) $ ( 11,739 ) The Company has a federal net operating loss carryforward of $ 52,494 for the 2022 tax year which will expire on December 31, 2042. The Company has a state net operating loss carryforward of $ 65,766 for the 2022 tax year which can be carried forward indefinitely and will never expire. A valuation allowance must be established for deferred tax assets when it is more likely than not that the deferred tax assets will not be realized based on available evidence both positive and negative, including recent operating results, available tax planning strategies, and projected future taxable income. Management concluded that the negative evidence outweighed the positive evidence and therefore a valuation allowance on the Company’s deferred tax assets is established as of December 31, 2022. The Company did not have a valuation allowance established as of December 31, 2021. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 18 -- Earnings Per Share U.S. GAAP requires the Company to use the two-class method in computing basic earnings (loss) 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 (loss) per share during periods of net income or loss. For a majority-owned subsidiary, its basic and diluted earnings (loss) 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 (loss) 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: Loss Shares (a) Per Share Year Ended December 31, 2022 Net loss $ ( 54,603 ) Less: Net income attributable to redeemable ( 9,106 ) Less: TypTap Group’s net loss attributable to 5,198 Net loss attributable to HCI ( 58,511 ) Less: Loss attributable to participating securities 3,463 Basic Loss Per Share: Loss allocated to common stockholders ( 55,048 ) 8,817 $ ( 6.24 ) Effect of Dilutive Securities: * Stock options — — Convertible senior notes — — Warrants — — Diluted Loss Per Share: Loss available to common stockholders and $ ( 55,048 ) 8,817 $ ( 6.24 ) (a) Shares in thousands. * Convertible senior notes, stock options, and warrants were excluded due to antidilutive effect. Income Shares (a) Per Share Year Ended December 31, 2021 Net income $ 7,242 Less: Net income attributable to redeemable ( 7,399 ) Less: TypTap Group’s net loss attributable to 2,013 Net income attributable to HCI 1,856 Less: Income attributable to participating securities ( 24 ) Basic Earnings Per Share: Income allocated to common stockholders 1,832 8,092 $ 0.23 Effect of Dilutive Securities: * Stock options — 207 Warrants — 281 Diluted Earnings Per Share: Income available to common stockholders and $ 1,832 8,580 $ 0.21 (a) Shares in thousands. * Convertible senior notes were excluded due to antidilutive effect. Income Shares (a) Per Share Year Ended December 31, 2020 Net income $ 27,580 Less: Income attributable to participating securities ( 1,462 ) Basic Earnings Per Share: Income allocated to common stockholders 26,118 7,351 $ 3.55 Effect of Dilutive Securities: Stock options — 23 Convertible senior notes 7,705 2,320 Diluted Earnings Per Share: Income available to common stockholders and $ 33,823 9,694 $ 3.49 (a) Shares in thousands. |
Redeemable Noncontrolling Inter
Redeemable Noncontrolling Interest | 12 Months Ended |
Dec. 31, 2022 | |
Noncontrolling Interest [Abstract] | |
Redeemable Noncontrolling Interest | Note 19 -- 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 Company incurred $ 6,262 of related issuance costs in 2021. 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 December 31, 2022. 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 years ended December 31, 2022 and 2021: 2022 2021 Balance at January 1 $ 89,955 $ — 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 5,842 4,208 Accretion - increasing dividend rates 3,264 3,191 Dividends paid ( 5,508 ) ( 2,542 ) Balance at December 31 $ 93,553 $ 89,955 * Net decrease related to warrants of $ 8,640 . For the years ended December 31, 2022 and 2021 , net income attributable to redeemable noncontrolling interest was $ 9,106 and $ 7,399 , respectively, consisting of accrued cash dividends of $ 5,842 and $ 4,208 , respectively, and accretion related to increasing dividend rates of $ 3,264 and $ 3,191 , respectively. |
Equity
Equity | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Equity | Note 20 -- Equity Stockholders’ Equity Common Stock In March 2022, the Company’s Board of Directors authorized a plan to repurchase up to $ 20,000 of the Company’s common shares before commissions and fees through December 31, 2022. There was no stock repurchase plan approved by the Board of Directors during 2021. In December 2019, the Board of Directors decided to extend the term of the 2019 stock repurchase plan to March 15, 2020, and in March 2020, the Board approved a stock repurchase plan to repurchase up to $ 20,000 of the Company’s common shares before commissions and fees during 2020. The shares may be purchased for cash in open market purchases, block transactions and privately negotiated transactions in accordance with applicable federal securities laws. There is no share repurchase plan approved by the Board for 2023. During the years ended December 31, 2022 and 2020, the Company repurchased and retired 391,151 and 129,142 shares, respectively, at weighted average prices per share of $ 43.61 and $ 39.93 , respectively, under these authorized repurchase plans. The total costs of shares repurchased under these plans, inclusive of fees and commissions, during the years ended December 31, 2022 and 2020 were $ 17,070 and $ 5,161 , respectively, or $ 43.64 and $ 39.96 per share, respectively. On October 13, 2022 , the Company’s Board of Directors declared a quarterly dividend of $ 0.40 per common share. The dividends were paid on December 16, 2022 to stockholders of record on November 18, 2022 . Warrants At December 31, 2022 , there were warrants outstanding and exercisable to purchase 750,000 shares of HCI common stock at an exercise price of $ 54.40 . The warrants expire on February 26, 2025 . Share Repurchase Agreement In conjunction with the issuance of the 4.75 % Convertible Senior Notes as described in Note 12 -- “Long-Term Debt” under Convertible Senior Notes , the Company used $ 66,853 of the net proceeds to repurchase and retire an aggregate of 1,037,600 shares of its common stock at a price of $ 64.43 per share from institutional investors. Prepaid Share Repurchase Forward Contract In March 2022, the Company’s prepaid share repurchase forward contract with Societe Generale, entered into in conjunction with the 2017 issuance of the 4.25 % Convertible Senior Notes, was physically settled with the delivery from Societe Generale of 191,100 shares of HCI’s common stock to the Company. Noncontrolling Interests At December 31, 2022 , there were 81,111,913 shares of TTIG’s common stock outstanding, of which 6,111,913 shares were not owned by HCI. During the years ended December 31, 2022 and 2021 , TTIG repurchased and retired a total of 69,876 and 48,901 shares, respectively, 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 during the years ended December 31, 2022 and 2021 was $ 406 and $ 55 , respectively. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Note 21 -- 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. With respect to the Plan, the Company may grant stock-based awards to employees, directors, consultants, and advisors of the Company. At December 31, 2022 , there were 1,116,205 shares available for grant. Stock Options Stock options granted and outstanding under the incentive plan vest over a period of four years and are exercisable over the contractual term of ten years . A summary of the stock option activity for the years ended December 31, 2022, 2021 and 2020 is as follows (option amounts not in thousands): Number of Weighted Weighted Aggregate 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 December 31, 2020 440,000 $ 45.25 7.6 years $ 3,113 Outstanding at December 31, 2021 440,000 $ 45.25 6.6 years $ 18,119 Outstanding at December 31, 2022 440,000 $ 45.25 5.6 years $ — Exercisable at December 31, 2022 357,500 $ 44.23 5.3 years $ — The following table summarizes information about options exercised for the years ended December 31, 2022, 2021 and 2020 (option amounts not in thousands): 2022 2021 2020 Options exercised — — 10,000 Total intrinsic value of exercised options $ — $ — $ 288 Tax benefits realized $ — $ — $ 71 For the years ended December 31, 2022, 2021 and 2020 , the Company recognized $ 669 , $ 884 and $ 1,180 , respectively, of compensation expense which was included in general and administrative personnel expenses. Deferred tax benefits related to stock options were $ 0 , $ 2 and $ 76 for the years ended December 31, 2022, 2021 and 2020, respectively. At December 31, 2022 and 2021 , there was $ 336 and $ 1,005 , 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 1.0 year. 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 year ended December 31, 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 certain 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 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 years ended December 31, 2022, 2021 and 2020 is as follows: Number of Weighted Nonvested at January 1, 2020 396,760 $ 41.71 Granted 192,680 $ 45.57 Vested ( 146,801 ) $ 40.54 Forfeited ( 18,852 ) $ 43.60 Nonvested at December 31, 2020 423,787 $ 43.79 Granted 564,426 $ 38.79 Vested ( 109,791 ) $ 43.19 Cancelled ( 142,760 ) $ 43.77 Forfeited ( 55,665 ) $ 44.01 Nonvested at December 31, 2021 679,997 $ 39.72 Granted 7,000 $ 69.17 Vested ( 333,308 ) $ 40.01 Forfeited ( 11,230 ) $ 45.00 Nonvested at December 31, 2022 342,459 $ 39.86 The Company recognized compensation expense related to restricted stock, which is included in general and administrative personnel expenses, of $ 10,926 , $ 9,642 and $ 6,953 for the years ended December 31, 2022, 2021 and 2020, respectively. At December 31, 2022 and 2021 , there was approximately $ 8,048 and $ 18,995 , 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 2.1 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 years ended December 31, 2022, 2021 and 2020. 2022 2021 2020 Deferred tax benefits recognized $ 1,780 $ 1,397 $ 1,296 Tax benefits realized for restricted stock and paid dividends $ 2,582 $ 1,519 $ 1,448 Fair value of vested restricted stock $ 13,337 $ 4,742 $ 5,952 On October 5, 2022, 231,516 shares of restricted stock issued to employees vested one year subsequent to satisfaction of a market-based vesting condition on October 5, 2021. The Company repurchased and retired a total of 80,339 shares surrendered to satisfy payroll tax liabilities associated with the vesting of these restricted shares. The restricted shares were granted in February 2021 with a grant date fair value of $ 36.57 per share. In February 2021, the Company cancelled 141,600 shares of restricted stock for employees who transitioned to TypTap Group. In exchange, these employees received replacement restricted stock issued under TTIG’s equity incentive plan. During the years ended December 31, 2022 and 2020, no awards were issued with other than service-based vesting conditions. Subsidiary Equity Plan For the years ended December 31, 2022 and 2021 , TypTap Group recognized compensation expense related to its stock-based awards of $ 3,512 and $ 3,228 , respectively. At December 31, 2022 and 2021 , there was $ 7,876 and $ 11,230 , respectively, of unrecognized compensation expense related to nonvested restricted stock and stock options. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2022 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | Note 22 -- Employee Benefit Plans The Company has a 401(k) Safe Harbor Profit Sharing Plan (“401(k) Plan”) that qualifies as a defined contribution plan under Section 401(k) of the Internal Revenue Code. Under the 401(k) Plan, participating employees are eligible for company matching and discretionary profit sharing contributions. Plan participants may elect to defer up to one hundred percent of their pre-tax gross wages, subject to annual limitations. The Company’s matching contribution is limited to a maximum of four percent of the employee’s annual salary or wage and is fully vested when contributed. Eligibility and vesting of the Company’s discretionary profit sharing contribution is subject to the plan participant’s years of service. During the years ended December 31, 2022, 2021 and 2020 , the Company contributed approximately $ 1,037 , $ 794 and $ 731 , respectively, in matching contributions, which are included in general and administrative personnel expenses. There has been no discretionary profit sharing contribution since the plan’s inception. The Company also maintains benefit plans for its employees in India including a statutory post-employment benefit plan, or gratuity plan, providing defined, lump-sum benefits. The Company’s liability for the gratuity plan reflects the undiscounted benefit obligation payable as of the balance sheet date, which was based upon the employees’ salary and years of service. At December 31, 2022 and 2021, the amounts accrued under the gratuity plan were $ 204 and $ 158 , respectively. In addition, the Company provides matching contributions with respect to two defined contribution plans: the Provident Fund and the Employees’ State Insurance Fund, both of which are available to qualifying employees in India. Expense recognized by the Company for all benefit plans in India was $ 46 , $ 28 and $ 41 , respectively, for the years ended December 31, 2022, 2021 and 2020 . |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 23 -- Commitments and Contingencies Obligations under Multi-Year Reinsurance Contracts As of December 31, 2022 , the Company has a contractual obligation related to one multi-year reinsurance contract. The contract was entered into effective June 1, 2022 and the Company’s previous two multi-year reinsurance contracts were commuted effective May 31, 2022. The contract may be cancelled only with the other party’s consent or when its experience account is positive at the end of each contract year. The table below presents the future minimum aggregate premium amounts payable to the reinsurer. Year Amount 2023 $ 91,350 2024 91,350 Total $ 182,700 Rental Income The Company leases available space at the Company’s various investment properties to non-affiliates at various terms. In addition, the Company leases boat slips and docks on a long-term basis. Expected annual rental income due under non-cancellable operating leases for all properties owned at December 31, 2022 is as follows: Year Amount 2023 $ 4,066 2024 4,058 2025 3,900 2026 3,176 2027 2,506 Thereafter 11,853 Total $ 29,559 Capital Commitments As described in Note 4 -- “Investments” under Limited Partnership Investments , the Company is contractually committed to capital contributions for limited partnership interests. At December 31, 2022 , there was an aggregate unfunded balance of $ 5,661 . FIGA Assessments 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 was levied at 0.70 % on collected premiums of all covered lines of business except auto insurance. The surcharge, which is collectible from a policyholder, was assessed on new and renewal policies with effective dates beginning January 1, 2022 through December 31, 2022. In March 2022, the Florida Office of Insurance Regulation approved an assessment for FIGA which is necessary to secure funds for the payment of covered claims relating to the liquidation of one insurance company. The FIGA assessment is levied at 1.3 % on collected premiums of all covered lines of business except auto insurance. The surcharge, which is collectible from a policyholder, is assessed on new and renewal policies with effective dates beginning July 1, 2022 through June 30, 2023. In August 2022, the Florida Office of Insurance Regulation approved a 2023 assessment for FIGA which is necessary to secure funds for the payment of covered claims relating to the liquidation of two insurance companies. The 2023 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, 2023 through December 31, 2023. The Company’s insurance subsidiaries, as member insurers, are required to collect and remit the pass-through assessments to FIGA on a quarterly basis. As of December 31, 2022, the FIGA assessments payable by the Company we re $ 2,832 . |
Quarterly Results of Operations
Quarterly Results of Operations | 12 Months Ended |
Dec. 31, 2022 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Results of Operations | Note 24 -- Quarterly Results of Operations (Unaudited) The tables below summarize unaudited quarterly results of operations for 2022, 2021 and 2020. Three Months Ended 03/31/22 06/30/22 09/30/22 12/31/22 Net premiums earned $ 125,763 $ 124,919 $ 106,972 $ 105,918 Total revenue 127,040 125,926 126,654 119,943 Losses and loss adjustment expenses 72,704 86,830 139,794 72,135 Policy acquisition and other underwriting expenses 29,408 26,863 24,678 24,028 Interest expense 601 1,515 2,813 2,839 Total expenses 123,039 137,486 190,256 117,200 Income (loss) before income taxes 4,001 ( 11,560 ) ( 63,602 ) 2,743 Net income (loss) 2,791 ( 8,542 ) ( 51,503 ) 2,651 Comprehensive income (loss) 7 ( 10,171 ) ( 58,804 ) 3,593 Earnings (loss) per share: Basic $ 0.09 $ ( 1.04 ) $ ( 5.66 ) $ 0.18 Diluted* $ 0.09 $ ( 1.04 ) $ ( 5.66 ) $ 0.18 * During the quarter ended March 31, 2022, the convertible senior notes were antidilutive. During the quarters ended June 30, 2022, September 30, 2022 and December 31, 2022, the convertible senior notes, stock options and warrants were antidilutive. Three Months Ended 03/31/21 06/30/21 09/30/21 12/31/21 Net premiums earned $ 87,843 $ 93,004 $ 94,232 $ 102,224 Total revenue 94,874 101,504 99,217 112,320 Losses and loss adjustment expenses 45,751 55,917 62,664 63,193 Policy acquisition and other underwriting expenses 23,065 23,169 23,340 24,158 Interest expense 2,079 2,000 1,664 657 Total expenses 84,772 96,407 105,721 109,782 Income (loss) before income taxes 10,102 5,097 ( 6,504 ) 2,538 Net income (loss) 6,845 3,830 ( 4,868 ) 1,435 Comprehensive income (loss) 6,705 3,470 ( 5,129 ) 1,128 Earnings (loss) per share: Basic $ 0.82 $ 0.25 $ ( 0.72 ) $ 0.01 Diluted** $ 0.75 $ 0.24 $ ( 0.72 ) $ 0.01 ** During the quarters ended June 30, 2021 and December 31, 2021, the convertible senior notes were antidilutive. During the quarter ended September 30, 2021, the convertible senior notes, stock options and warrants were antidilutive. Three Months Ended 03/31/20 06/30/20 09/30/20 12/31/20 Net premiums earned $ 61,646 $ 73,449 $ 62,463 $ 64,902 Total revenue 55,380 80,717 104,027 70,313 Losses and loss adjustment expenses 28,078 39,843 51,743 40,372 Policy acquisition and other underwriting expenses 11,826 12,991 14,210 14,832 Interest expense 2,970 3,020 2,856 2,888 Total expenses 54,723 68,894 82,491 67,401 Income before income taxes 657 11,823 21,536 2,912 Net income 547 8,936 15,390 2,707 Comprehensive (loss) income ( 1,585 ) 10,286 15,634 2,611 Earnings per share: Basic $ 0.07 $ 1.16 $ 1.97 $ 0.35 Diluted*** $ 0.07 $ 1.08 $ 1.68 $ 0.35 *** During the quarters ended March 31, 2020 and December 31, 2020, the convertible senior notes were antidilutive. |
Regulatory Requirements and Res
Regulatory Requirements and Restrictions | 12 Months Ended |
Dec. 31, 2022 | |
Regulatory Requirements And Restrictions [Abstract] | |
Regulatory Requirements and Restrictions | Note 25 -- Regulatory Requirements and Restrictions The Company has no restrictions on the payment of dividends to its shareholders except those restrictions imposed by the Florida Business Corporation Act and those restrictions imposed by insurance statutes and regulations applicable to the Company’s insurance subsidiaries. As of December 31, 2022 , without prior regulatory approval, $ 147,732 of the Company’s consolidated retained earnings was free from restriction under the insurance statutes and regulations and available for the payment of dividends in 2023. The following briefly describes certain related and other requirements and restrictions imposed by the states or jurisdiction in which the Company’s insurance subsidiaries are incorporated. Florida HCPCI and TypTap, which are domiciled in Florida, prepare their statutory financial statements in accordance with accounting principles and practices prescribed or permitted by the FLOIR, which Florida utilizes for determining solvency under the Florida Insurance Code (the “Code”). The commissioner of the FLOIR has the right to permit other practices that may deviate from prescribed practices. Prescribed statutory accounting practices are those practices that are incorporated directly or by reference in state laws, regulations, and general administrative rules applicable to all insurance enterprises domiciled in Florida. Permitted statutory accounting practices encompass all accounting practices that are not prescribed; such practices differ from state to state, may differ from entity to entity within a state, and may change in the future. The Code requires HCPCI and TypTap to maintain capital and surplus equal to the greater of 10 % of their respective liabilities or a statutory minimum as defined in the Code. At December 31, 2022, HCPCI and TypTap were required to maintain minimum capital and surplus o f $ 28,845 and $ 30,479 , respectively. At December 31, 2021 , HCPCI and TypTap were required to maintain minimum capital and surplus of $ 36,173 and $ 19,334 , respectively. HCPCI and TypTap were in compliance with these requirements at December 31, 2022 and 2021. U.S. GAAP differs in certain respects from the accounting practices prescribed or permitted by insurance regulatory authorities (statutory-basis). These entities’ statutory-basis financial statements are presented on the basis of accounting practices prescribed or permitted by the FLOIR. The FLOIR has adopted the National Association of Insurance Commissioners (“NAIC”) Accounting Practices and Procedures Manual as the basis of its statutory accounting practices. At December 31, 2022 and 2021 , HCPCI’s statutory-basis capital and surplus was approximately $ 103,838 and $ 120,480 , respectively. For the year ended December 31, 2022 , HCPCI had a statutory-basis net loss of approximately $ 4,345 . For the year ended December 31, 2021 , HCPCI had a statutory-basis net income of approximately $ 45 as opposed to a statutory-basis net loss of approximately $ 28,780 for the year ended December 31, 2020. At December 31, 2022 and 2021, TypTap’s statutory-basis capital and surplus was approximately $ 76,736 and $ 93,360 , respectively. For the years ended December 31, 2022, 2021 and 2020 , TypTap’s statutory-basis net losses were approximately $ 31,739 , $ 29,396 and $ 10,900 , respectively. Statutory-basis surplus differs from stockholders’ equity reported in accordance with U.S. GAAP primarily because policy acquisition costs are expensed when incurred. In addition, the recognition of deferred tax assets is based on different recoverability assumptions. Since inception to September 2020, HCPCI and TypTap have each maintained a cash deposit with the Insurance Commissioner of the State of Florida in the amount of $ 300 to meet regulatory requirements. TypTap later increased its cash deposit to $ 2,000 and placed a U.S. Government security in the amount of $ 310 with the State during the fourth quarter of 2020 in connection with its continued expansion. Under Florida law, a domestic insurer may not pay any dividend or distribute cash or other property to its stockholders except out of that part of its available and accumulated capital and surplus funds which is derived from realized net operating profits on its business and net realized capital gains. A Florida domestic insurer may not make dividend payments or distributions to stockholders without prior approval of the FLOIR if the dividend or distribution would exceed the larger of (1) the lesser of (a) 10.0 % of its capital surplus or (b) net income, not including realized capital gains, plus a two year carry forward, (2) 10.0 % of capital surplus with dividends payable constrained to unassigned funds minus 25 % of unrealized capital gains or (3) the lesser of (a) 10.0 % of capital surplus or (b) net investment income plus a three year carry forward with dividends payable constrained to unassigned funds minus 25 % of unrealized capital gains. Alternatively, a Florida domestic insurer may pay a dividend or distribution without the prior written approval of the FLOIR if (1) the dividend is equal to or less than the greater of (a) 10.0 % of the insurer’s capital surplus as regards to policyholders derived from realized net operating profits on its business and net realized capital gains or (b) the insurer’s entire net operating profits and realized net capital gains derived during the immediately preceding calendar year, (2) the insurer will have policy holder capital surplus equal to or exceeding 115.0 % of the minimum required statutory capital surplus after the dividend or distribution, (3) the insurer files a notice of the dividend or distribution with the FLOIR at least ten business days prior to the dividend payment or distribution and (4) the notice includes a certification by an officer of the insurer attesting that, after the payment of the dividend or distribution, the insurer will have at least 115 % of required statutory capital surplus as to policyholders. Except as provided above, a Florida domiciled insurer may only pay a dividend or make a distribution (1) subject to prior approval by the FLOIR or (2) 30 days after the FLOIR has received notice of such dividend or distribution and has not disapproved it within such time. As a result, only HCPCI was qualified to make dividend payments at December 31, 2022, 2021 and 2020. Without prior written approval from the FLOIR, TypTap was not permitted to make any dividend payments. In addition, Florida property and casualty insurance companies are required to adhere to prescribed premium-to-capital surplus ratios. Florida state law requires that the ratio of 90 % of written premiums divided by surplus as to policyholders does not exceed 10 to 1 for gross written premiums or 4 to 1 for net written premiums. The ratios of gross and net written premiums to surplus, which the Company’s insurance subsidiaries have met the requirements for, are summarized below: Years Ended December 31, 2022 2021 2020 HCPCI: Gross 3.30 to 1 3.21 to 1 3.02 to 1 Net 1.66 to 1 2.01 to 1 1.84 to 1 TypTap: Gross 4.11 to 1 2.40 to 1 2.47 to 1 Net 2.34 to 1 1.61 to 1 1.50 to 1 Bermuda The Bermuda Monetary Authority requires Claddaugh Casualty Insurance Company, Ltd. (“Claddaugh”), the Company’s Bermuda domiciled reinsurance subsidiary, to maintain minimum capital and surplus of $ 2,000 . At December 31, 2022 and 2021 , Claddaugh’s statutory capital and surplus was approximately $ 65,992 and $ 55,350 , respectively. For the year ended December 31, 2022 , Claddaugh reported a statutory net loss of approximately $ 21,575 . For the year ended December 31, 2021 , Claddaugh reported a statutory net loss of approximately $ 2,850 as opposed to a statutory net income of approximately $ 1,400 for the year ended December 31, 2020 . During 2022, the Company contributed approximately $ 31,868 of capital to Claddaugh. There was no capital contribution to or return of capital from Claddaugh during 2021. During 2020, the Company contributed approximately $ 22,600 of capital to Claddaugh. HCPCI and TypTap are subject to risk-based capital (“RBC”) requirements as specified by the NAIC. Under those requirements, the amount of minimum capital and surplus maintained by a property and casualty insurance company is to be determined based on the various risks related to it. Pursuant to the RBC requirements, insurers having less statutory capital than required by the RBC calculation will be subject to varying degrees of regulatory action, depending on the level of capital inadequacy. At December 31, 2022 and 2021, the Company’s insurance subsidiaries individually exceeded any applicable minimum risk-based capital requirements and no corrective actions have been required. As of December 31, 2022 , the combined statutory capital and surplus and minimum capital and surplus of the Company’s U.S. insurance subsidiaries were approximately $ 180,574 and $ 59,324 , respectively. At December 31, 2022 and 2021 , restricted net assets represented by the Company’s insurance subsidiaries amounted to $ 199,503 and $ 215,812 , respectively. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 26 -- Related Party Transactions On December 21, 2022, TTIG issued a demand promissory note to the Company for the principal amount of $ 15,000 . The note bears an annual interest rate of 5.5 % with a maturity date for the principal and unpaid accrued interest of December 21, 2025 . On June 1, 2022, TTIG issued a demand promissory note to the Company for the principal amount of $ 2,994 . The note bears an annual interest rate of 3.25 % with a maturity date for the principal and unpaid accrued interest of June 1, 2025 . On December 22, 2021, TTIG issued a demand promissory note to the Company for the principal amount of $ 40,000 . The note bears an annual interest rate of 2.0 % with a maturity date for the principal and unpaid accrued interest of June 30, 2023 . See Note 28 -- “Subsequent Events” for additional information. 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 ended on February 26, 2021 upon completion of the capital investment transaction by TTIG. |
Condensed Financial Information
Condensed Financial Information of HCI Group, Inc. | 12 Months Ended |
Dec. 31, 2022 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Financial Information of HCI Group, Inc. | Note 27 -- Condensed Financial Information of HCI Group, Inc. Condensed financial information of HCI Group, Inc. is as follows: Balance Sheets December 31, 2022 2021 Assets Cash and cash equivalents $ 102,755 $ 10,366 Fixed-maturity securities, available for sale, at fair value 34 1,637 Equity securities, at fair value 8,662 11,513 Limited partnership investments 19,446 21,722 Note receivable – related party 58,102 40,022 Investment in subsidiaries 274,785 332,596 Property and equipment, net 805 712 Intangible assets, net — 5,374 Right-of-use assets - operating leases 7,631 4,243 Income taxes receivable — 3,281 Other assets 1,515 1,595 Total assets $ 473,735 $ 433,061 Liabilities and Stockholders’ Equity Accrued expenses and other liabilities $ 1,618 $ 2,560 Lease liabilities - operating leases 7,607 4,290 Income tax payable 8,427 — Deferred income taxes, net 2 900 Revolving credit facility — 15,000 Long-term debt 191,042 23,886 Due to related parties 102,443 63,060 Total liabilities 311,139 109,696 Total stockholders’ equity 162,596 323,365 Total liabilities and stockholders’ equity $ 473,735 $ 433,061 Statements of Income Years Ended December 31, 2022 2021 2020 Net investment income (loss) $ 5,498 $ 3,115 $ ( 676 ) Net realized investment (losses) gains ( 1,154 ) 3,344 330 Net unrealized investment (losses) gains ( 1,609 ) 92 229 Credit losses on investments — — ( 20 ) Other income 1,138 222 — Loss on repurchases of convertible senior notes — — ( 150 ) Interest expense ( 6,876 ) ( 5,467 ) ( 10,710 ) Debt conversion expense — ( 1,754 ) — Operating expenses ( 9,877 ) ( 9,056 ) ( 6,887 ) Loss before income tax benefit and equity in (loss) income of subsidiaries ( 12,880 ) ( 9,504 ) ( 17,884 ) Income tax benefit 1,700 2,086 4,024 Net loss before equity in (loss) income of subsidiaries ( 11,180 ) ( 7,418 ) ( 13,860 ) Equity in (loss) income of subsidiaries ( 47,331 ) 9,274 41,440 Net (loss) income $ ( 58,511 ) $ 1,856 $ 27,580 Statements of Cash Flows Years Ended December 31, 2022 2021 2020 Cash flows from operating activities: Net (loss) income $ ( 58,511 ) $ 1,856 $ 27,580 Adjustments to reconcile net (loss) income to net cash provided by Stock-based compensation expense 6,430 5,874 4,488 Net realized investment losses (gains) 1,154 ( 3,344 ) ( 330 ) Net unrealized investment losses (gains) 1,609 ( 92 ) ( 229 ) Net (accretion of discount) amortization of premiums on investments ( 110 ) 3 ( 42 ) Depreciation and amortization 1,403 1,490 4,686 Net (income) loss from limited partnership investments ( 3,345 ) ( 2,608 ) 1,781 Distributions from limited partnership interests 2,123 1,477 844 Credit losses on investments — — 20 Debt conversion expense — 1,754 — Loss on repurchases of convertible senior notes — — 150 Equity in loss (income) of subsidiaries 47,331 ( 9,274 ) ( 41,440 ) Deferred income taxes ( 895 ) 232 ( 935 ) Changes in operating assets and liabilities: Income taxes 11,708 5,067 ( 9,791 ) Other assets ( 2,805 ) 2,679 ( 629 ) Accrued expenses and other liabilities 4,078 ( 5,620 ) 1,096 Due to related parties 38,696 5,360 17,438 Net cash provided by operating activities 48,866 4,854 4,687 Cash flows from investing activities: Investments in limited partnership interests ( 1,261 ) ( 2,616 ) ( 3,376 ) Investment in note receivable – related party ( 15,000 ) ( 40,000 ) ( 22,000 ) Purchase of fixed-maturity securities ( 52,576 ) ( 1,685 ) ( 7 ) Purchase of equity securities ( 11,406 ) ( 76,786 ) ( 35,855 ) Purchase of short-term and other investments ( 42 ) ( 1,307 ) ( 200 ) Purchase of intangible assets ( 3,800 ) — — Purchase of property and equipment ( 581 ) ( 365 ) ( 742 ) Proceeds from sales of fixed-maturity securities 86 134 447 Proceeds from calls, repayments and maturities of fixed-maturity 54,178 145 27 Proceeds from sales of equity securities 10,975 78,555 30,688 Proceeds from sales, redemptions and maturities of short-term and other 570 3,618 537 Collection of note receivable – related party — 23,280 — Distributions received from limited partnership interests 4,759 2,567 1,614 Dividends received from subsidiary 51,500 41,900 52,500 Return of capital from subsidiary — — 9 Investment in subsidiaries ( 41,868 ) ( 10,000 ) ( 22,629 ) Net cash (used in) provided by investing activities ( 4,466 ) 17,440 1,013 (continued) Statements of Cash Flows – (Continued) Years Ended December 31, 2022 2021 2020 Cash flows from financing activities: Repurchases of common stock ( 71,242 ) ( 1,314 ) ( 1,547 ) Repurchases of common stock under share repurchase plan ( 17,070 ) — ( 5,161 ) Repurchases of convertible senior notes — — ( 4,459 ) Debt issuance costs ( 6,041 ) ( 152 ) — Cash dividends paid ( 15,233 ) ( 14,065 ) ( 12,694 ) Cash dividends received under share repurchase forward contract 76 306 306 Net (repayment) borrowing under revolving credit facility ( 15,000 ) ( 8,750 ) 14,000 Proceeds from exercise of common stock options — — 63 Debt conversion expense paid — ( 1,895 ) — Proceeds from issuance of long-term debt 172,500 — — Repayment of long-term debt ( 1 ) ( 2 ) ( 2 ) Net cash provided by (used in) financing activities 47,989 ( 25,872 ) ( 9,494 ) Net increase (decrease) in cash and cash equivalents 92,389 ( 3,578 ) ( 3,794 ) Cash and cash equivalents at beginning of year 10,366 13,944 17,738 Cash and cash equivalents at end of year $ 102,755 $ 10,366 $ 13,944 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 28 -- Subsequent Events Since January 1, 2023, the Tampa office building property that was previously leased to an unaffiliated company has been used in operations by the Company and serves as TTIG’s corporate headquarters. As a result, it is reclassified out of real estate investments to property and equipment on the consolidated balance sheet subsequent to December 31, 2022. On January 11, 2023 , the Company’s Board of Directors declared a quarterly dividend of $ 0.40 per common share. The dividends are payable on March 17, 2023 to stockholders of record on February 17, 2023 . On January 12, 2023, HCPCI and TypTap received approval from the FLOIR to discontinue flood insurance policies written in Florida with policy cancellation effective dates no later than May 31, 2023. The reason for discontinuation is primarily attributable to the increased costs and reduced availability of flood reinsurance. The discontinuation will not have a material impact to the Company’s results of operations. On January 17, 2023, the Company received the final distribution of $ 18 from FMKT Mel JV, the unconsolidated joint venture that the Company had a 90 % equity interest in which was liquidated on December 31, 2022 . On February 5, 2023, the Company’s Board of Directors extended the maturity date for the principal and unpaid accrued interest of the $ 40,000 demand promissory note with TTIG to June 30, 2025 . On February 14, 2023, the Company entered into a conditional agreement to sell its retail shopping center investment property in Sorrento, Florida to a non-affiliate for a price of $ 13,418 . Subject to due diligence, the sale is expected to be completed within 45 days after the contract date. On February 16, 2023, the Company entered into a conditional agreement to sell its retail shopping center investment property in Melbourne, Florida to a non-affiliate for a price of $ 18,500 . Subject to due diligence, the sale is expected to be completed within 45 days after the contract date . On February 27, 2023, United’s Florida-domiciled residential insurance subsidiary was placed into receivership by the State of Florida due to its financial insolvency. Under the existing contracts, United is responsible for payment of ceded premiums owed to the Company while the Company is responsible for adjudicating and paying claims. At December 31, 2022, the Company had a net amount due to United of $ 1,114 and funds withheld for assumed business in trust accounts totaling $ 48,772 for the benefit of policies assumed from, and TPA services provided to, United. The Company cannot predict the actions a receiver might take, which may include cancellation of policies subject to the quota share contracts, termination of the TPA service agreement and restrictions on, or use of, funds held in trust. Any such actions could have a material adverse effect on the Company’s financial position and results of operations. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation. The accompanying financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). |
Principles of Consolidation | Principles of Consolidation. The accompanying consolidated financial statements include the accounts of HCI Group, Inc. and its majority-owned and controlled subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. In addition, the Company evaluates its relationships or investments for consolidation pursuant to authoritative accounting guidance related to the consolidation of variable interest entities under the Variable Interest Model prescribed by the FASB. A variable interest entity is consolidated when the Company has the power to direct activities that most significantly impact the economic performance of the variable interest entity and has the obligation to absorb losses or the right to receive benefits from the variable interest entity that could potentially be significant to the variable interest entity. When a variable interest entity is not consolidated, the Company uses the equity method to account for the investment. Under this method, the carrying value is generally the Company’s share of the net asset value of the unconsolidated entity, and changes in the Company’s share of the net asset value are recorded in net investment income. |
Use of Estimates | Use of Estimates. The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities as well as the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results may differ materially from these estimates. Material estimates that are particularly susceptible to significant change in the near term are primarily related to losses and loss adjustment expenses, reinsurance with retrospective provisions, reinsurance recoverable, deferred income taxes, limited partnership investments, intangible assets acquired from United, allowance for credit losses, and stock-based compensation expense. |
Cash and Cash Equivalents | Cash and Cash Equivalents. The Company considers all short-term highly liquid investments with original maturities of less than three months to be cash and cash equivalents. At December 31, 2022 and 2021 , cash and cash equivalents consisted of cash on deposit with financial institutions and securities brokerage firms, and certificates of deposit. |
Restricted Cash | Restricted Cash. Restricted cash represents funds in the Company’s sole ownership held by certain states in which the Company’s insurance subsidiaries conduct business to meet regulatory requirements and not available for immediate business use. Funds withheld in an account for which the Company is a co-owner but not the named beneficiary are not considered restricted cash and are included in funds withheld for assumed business on the consolidated balance sheets. |
Available-for-Sale Fixed-Maturity Securities | Available-for-Sale Fixed-Maturity Securities. Fixed-maturity securities that are available for sale include debt securities and redeemable preferred stock. The Company’s available-for-sale securities are carried at fair value. Changes in the fair value of available-for-sale securities representing unrealized gains or losses, other than impairments, are excluded from net investment income and reported in stockholders’ equity as a component of accumulated other comprehensive income (loss), net of deferred income taxes. Realized investment gains and losses from sales are recorded on the trade date and are determined using the first-in first-out (“FIFO”) method. Investment income is recognized as earned and discounts or premiums arising from the purchase of debt securities are recognized in investment income using the interest method over the estimated remaining term of the security. Gains and losses from call redemptions and repayments are charged to investment income. The Company reviews fixed-maturity securities for impairment on a monthly basis. Effective January 1, 2020, net unrealized loss in the fair value of an available-for-sale fixed-maturity security is evaluated for impairment. When reviewing impaired securities, the Company considers its ability and intent to hold these securities and whether it is probable that the Company will be required to sell these securities prior to their anticipated recovery or maturity. For the fixed-maturity securities that the Company intends to sell or it is probable that the Company will have to sell before recovery or maturity, the unrealized losses are recognized as impairment losses in income. Impaired securities where the Company has the ability and intent to hold until recovery and believes it is not probable that the Company will be required to sell these securities prior to their anticipated recovery or maturity, are evaluated for the existence of credit-related losses. When determining impairment due to a credit-related loss, the Company carefully considers factors such as the issuer’s financial ratios and condition, the security’s current ratings and maturity date, the failure of the issuer to make a scheduled payment, and overall market conditions in estimating the cash flows expected to be collected. The expected cash flows discounted at the effective interest rate of the security implicit at the date of acquisition are then compared with the security’s amortized cost at the measurement date. A credit loss is incurred when the present value of the expected cash flows is less than the security’s amortized cost. If such credit-related losses exist, an allowance for credit losses is established with a charge in the statement of income. Subsequent changes in the allowance, whether favorable or unfavorable, are recorded on the statement of income. See additional information in the Allowance for Credit Losses section within this note. Any remaining impairment loss related to other non-credit factors such as changes in interest rates or market conditions is reflected as a component of accumulated other comprehensive income (loss). |
Allowance for Credit Losses | Allowance for Credit Losses. Allowance for credit losses represents an estimation of potential losses that the Company may experience due to credit risk. The allowance for credit losses account is a contra account of a financial asset to reflect the net amount expected to be collected. Any increase or decrease in the allowance for credit losses related to investments is recognized and reflected as credit losses on investments in the Company’s consolidated statement of income. For all other financial assets, credit loss expense is included in other operating expenses. When the risk of credit loss becomes certain, the allowance for credit losses account will be written off against the financial asset. Under the CECL model, the Company measures all expected credit losses related to relevant financial assets based on historical experience, current conditions, and reasonable and supportable forecasts which incorporate forward-looking information. The Company primarily uses a discounted cash flow method and a rating-based method in estimating credit losses at a reporting date for financial assets under the scope of the CECL model. The discounted cash flow method is a valuation method used to estimate the value of a financial asset based on its future cash flows. The Company uses this method to determine the expected credit losses for available-for-sale fixed-maturity securities. In addition, the Company elected not to measure an allowance for credit losses for accrued interest receivable as any uncollectible amount is adjusted to interest income on a monthly basis. At present, the exposure to credit losses for certain financial assets related to non-insurance business is considered immaterial to the Company’s financial position. For certain financial assets related to insurance business such as reinsurance recoverable and reinsurance receivable for premium refund, the Company uses a rating-based method, which is a modified version of the probability of default method. It requires two key inputs: a) the liquidation rate and b) the amount of loss exposure. The liquidation rate, which is published annually, is the ratio of impaired insurance companies that were eventually liquidated to the group of insurance companies considered by A.M. Best in its study. The amount of loss exposure represents the future billing balance, net of any collateral, spread over the projected periods that are based on the Company’s historical claim payment pattern. The rating-based method measures credit losses by multiplying the future billings grouped by insurance rating over the projected periods by their corresponding liquidation rates by insurance rating. For paid reinsurance recoverable which is due within 90 days after billing, the Company will rely heavily on each reinsurer’s credit rating, recent financial condition, and historical collection problems, if any, in determining the expected credit loss. For risk attributable to disagreements between an insurer and reinsurer regarding a difference in interpretation of provisions in a reinsurance agreement (“dispute risk”), the Company will continue to use an incurred loss method to estimate losses. At December 31, 2022 , there was no dispute risk associated with the reinsurance recoverable balance. |
Equity Securities | Equity Securities. Equity securities represent ownership interests held by the Company in entities for investment purposes. Unrealized holding gains and losses related to equity securities are reported in the consolidated statements of income as net unrealized investment gains and losses. Realized investment gains and losses from sales are recorded on the trade date and are determined using the FIFO method (see Equity Securities in Note 4 -- “Investments”). |
Limited Partnership Investments | Limited Partnership Investments. The Company has interests in limited partnerships that are not registered under the United States Securities Act of 1933, as amended, the securities laws of any state or the securities laws of any other jurisdictions. The partnership interests cannot be resold in the public market and any withdrawal is subject to the terms and conditions of the partnership agreements. The Company has no influence over partnership operating and financial policies. The Company uses the equity method to account for the investments with ownership interest greater than five percent. For the investments with ownership interest at five percent or less, the Company uses the net asset value method to estimate the fair value of these investments. The Company generally recognizes its share of the limited partnerships’ earnings or losses on a three-month lag. Due to the lag, the Company may record an adjustment to the Company’s most recent share of net asset value when the amount can be reasonably estimated and a significant adverse impact on the net asset value is expected as a result of a major economic event. Net investment income or loss from limited partnerships represents a net aggregate amount of operating results allocated to the Company based on the percentage of ownership interest in each limited partnership. Pursuant to U.S. GAAP, these limited partnerships which are private equity funds must measure their investments at fair value and reflect the unrealized gains and losses in the fair value of their investments on their statements of income. As a result, the carrying value of limited partnership investments at each reporting date approximates their estimated fair value. |
Investment in Unconsolidated Joint Venture | Investment in Unconsolidated Joint Venture. The Company had a 90 % equity interest in a limited liability company (treated as a joint venture under U.S. GAAP) that owned land for lease or for sale. The joint venture was determined to be a variable interest entity as it lacked sufficient equity to finance its activities without additional subordinated financial support. Despite having a majority equity interest, the Company did not have the power to direct the activities that most significantly impact the economic performance of the joint venture and, accordingly, was not required to consolidate the joint venture as its primary beneficiary. As a result, the Company used the equity method to account for this investment. When evidence indicates an impairment may occur, the Company evaluates whether a decline in value is other than temporary. Evidence may include continuing operating losses of the joint venture, a declining occupancy rate, a decrease in real estate value, and an oversupply of rental property in close vicinity to the investment property. Should available evidence indicate the recovery of the initial investment is less likely, the Company would compare the carrying value of the investment with its expected residual value and recognize an impairment loss in earnings. |
Real Estate Investments | Real Estate Investments. Real estate investments include real estate and the related assets purchased for investment purposes (see Note 4 -- “Investments”). Real estate and the related depreciable assets are carried at cost, net of accumulated depreciation, which is included in net investment income and allocated over the estimated useful life of the asset using the straight-line method of depreciation. Land is not depreciated. Real estate is evaluated for impairment when events or circumstances indicate the carrying value of the real estate may not be recoverable. |
Deferred Policy Acquisition Costs | Deferred Policy Acquisition Costs. Deferred policy acquisition costs (“DAC”) represent direct costs to acquire insurance contracts and consist of premium taxes, inspection fees and commissions paid to outside agents at the time of collection of the policy premium. DAC may also include expenses associated with the transition of policies from other insurers for replacement policies and the issuance of renewal policies under the Company’s own rates and terms. DAC is amortized over the life of the related policy in relation to the amount of gross premiums earned. Ceding commission and related costs paid associated with assumed business are also deferred and amortized over the life of the reinsurance agreement. The method followed in computing DAC limits the amount of such deferred costs to their estimated realizable value, which gives effect to the gross premium earned, related investment income, unpaid losses and loss adjustment expenses and certain other costs expected to be incurred as the premium is earned. DAC is reviewed to determine if it is recoverable from future premium income, including investment income. If such costs are determined to be unrecoverable, they are expensed at the time of determination. The amount of DAC considered recoverable could be reduced in the near term if the estimates of total gross premium earned are reduced or permanently impaired as a result of the disposition of a line of business. The amount of amortization of DAC could be revised in the near term if any of the gross premium earned estimates discussed above are revised. |
Property and Equipment | Property and Equipment. Property and equipment is stated at cost less accumulated depreciation and amortization, which is included in other operating expenses. Depreciation is calculated on a straight-line basis over the estimated useful lives as follows: land improvements, five years ; building, 39 years; building improvements, three to ten years ; computer hardware and software, three years ; and furniture and office equipment, three to seven years . Leasehold improvements are amortized over the shorter of the lease term or the asset’s useful life. Land is not depreciated. Expenditures for improvements are capitalized to the property accounts. Replacements and maintenance and repairs that do not improve or extend the life of the respective assets are expensed as incurred. The Company capitalizes both internal and external costs for internally developed software during the application development stage. During the preliminary project and post-implementation stage, internal-use software development costs are expensed as incurred. Capitalized software costs are depreciated on a straight-line basis over the estimated useful life of seven years . |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets. Long-lived assets, such as property and equipment, are reviewed for impairment annually or whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. The Company assesses the recoverability of long-lived assets by determining whether the assets can be recovered from undiscounted future cash flows. Recoverability of long-lived assets is dependent upon, among other things, the Company’s ability to maintain profitability so as to be able to meet its obligations when they become due. In the opinion of management, based upon current information and projections, tangible long-lived assets will be recovered over the period of benefit. |
Leases | Leases. The Company leases office equipment, storage units, and office space from non-affiliates under terms ranging from one month up to nine years . In assessing whether a contract is or contains a lease, the Company first determines whether there is an identified asset in the contract. The Company then determines whether the contract conveys the right to obtain substantially all of the economic benefits from use of the identified asset or the right to direct the use of the identified asset. The Company elects not to record any lease with a term of 12 months or less on the consolidated balance sheet. For such short-term leases, the Company recognizes the lease payments in expense on a straight-line basis over the lease term. If the contract is or contains a lease and the Company has the right to control the use of the identified asset, the right-of-use (“ROU”) asset and the lease liability is measured from the lease component of the contract and recognized on the consolidated balance sheet. In measuring the lease liability, the Company uses its incremental borrowing rate for a loan secured by a similar asset that has a term similar to the lease term to discount the lease payments. The contract is further evaluated to determine the classification of the lease as to whether it is finance or operating. If the lease is a finance lease, the ROU asset is depreciated to depreciation expense over the shorter of the useful life of the asset or the lease term. Interest expense is recorded in connection with the lease liability using the effective interest method. If the lease is an operating lease, the ROU asset is amortized to lease expense on a straight-line basis over the lease term. For the presentation of finance leases on the Company’s consolidated balance sheets, ROU assets and corresponding lease liabilities are included with property and equipment, net, and long-term debt, respectively. For the presentation of operating leases on the Company’s consolidated balance sheets, ROU assets are presented as right-of-use assets - operating leases and corresponding lease liabilities are reflected as lease liabilities - operating leases. |
Lessor Leases | The Company as a lessor leases its commercial and retail properties, boat slips, and docks to non-affiliates at various terms. If the contract gives the Company’s customer the right to control the use of the identified asset, revenue is recognized on a straight-line basis over the lease term. Initial direct costs incurred by the Company are deferred and amortized on a straight-line basis over the lease term. The Company also records an unbilled receivable, which is the amount by which straight-line revenue exceeds the amount billed in accordance with the lease. |
Intangible Assets | Intangible Assets. Intangibles related to real estate investments consist of the value attributable to the acquired in-place leases and the primary, or anchor, tenant relationships. The value attributable to the anchor tenant relationship represents the economic benefits of having a nationally recognized retailer as the lead tenant, which draws consumer traffic and other tenants to the retail center. These intangibles are amortized to expense over the related lease term. Amortization of the intangibles related to real estate investments is reflected in net investment income in the consolidated statements of income. The Company reviews these intangible assets for impairment annually or when events or changes in circumstances indicate the carrying value may not be recoverable. In the event the Company determines the carrying value is not recoverable, an impairment loss is recorded in the Company’s consolidated statement of income. Acquired intangible assets represent the fair value of consideration the Company paid and is estimated to pay in exchange for the renewal rights and non-compete intangible assets acquired from the seller. In the renewal rights transactions, the Company purchased the right, but not the obligation, to offer homeowners insurance coverage to all policyholders of the seller in certain states on the agreed-upon policy replacement date. The renewal rights agreements also contain a non-compete clause whereby the seller agrees not to offer homeowners insurance policies in these states through a specified date. The Company records these intangible assets based on the fair value of the consideration it paid and is estimated to pay to the seller as provided in the renewal rights agreements with the seller. The Company engaged a third-party valuation specialist to assist with the allocation of the renewal rights and non-compete intangible assets acquired. Intangible assets are amortized over their estimated useful lives. Amortization of the renewal rights and non-compete intangible assets is reflected in other operating expenses in the consolidated statements of income. Intangible assets are evaluated to ensure that there is no impairment to carrying value and no change required in the amortization period. See Note 9 -- “Intangible Assets, Net” for additional information. |
Funds Withheld for Assumed Business | Funds Withheld for Assumed Business. Pursuant to the Company’s quota share reinsurance agreements with United, trust accounts were established for the benefit of United as beneficiary. The balance represents the net amount owed to the Company under the reinsurance agreements and consists of funds deposited to establish the trust accounts adjusted for subsequent premium changes net of related commissions and decreased for paid losses and loss adjustment expenses. The assets within the trust accounts consist primarily of cash and United has the exclusive and unconditional right to withdraw funds from the trust accounts on demand with written notice in compliance with the quota share reinsurance agreements. Any balance remaining at the termination of the quota share agreement will be settled and distributed upon the termination of the trust account and trust agreement. |
Lease Acquisition Costs | Lease Acquisition Costs. Lease acquisition costs represent capitalized costs of finding and acquiring tenants such as leasing commissions, legal, and marketing expenses. The costs are included in other assets on the consolidated balance sheets. The Company amortizes these costs in other operating expenses on a straight-line basis over the term of a lease. |
Long-Term Debt | Long-Term Debt. Long-term debt includes debt instruments and finance lease obligations. A debt instrument is generally classified as a liability and carried at amortized cost, net of any issuance costs. Debt issuance costs are capitalized and amortized to interest expense over the expected life of the debt instrument using the effective interest method. At issuance, a debt instrument with embedded features such as conversion and redemption options is evaluated to determine whether bifurcation and derivative accounting is applicable. Any embedded feature other than the conversion option is evaluated at issuance to determine if it is probable that such embedded feature will be exercised. If the Company concludes that the exercisability of that embedded feature is not probable, the embedded feature is considered to be non-substantive and would not impact the initial measurement and expected life of the debt instrument. Prior to January 1, 2021, if the embedded feature of the debt instrument was not subject to derivative accounting, the debt instrument was further evaluated to determine if the Company was required to separately account for the liability and equity components. To determine the carrying values of the liability and equity components at issuance, the Company measured the fair value of a similar liability, including any embedded features other than the conversion option, and assigned such value to the liability component. The liability component’s fair value was then subtracted from the initial proceeds to determine the carrying value of the debt instrument’s equity component, which was included in additional paid-in capital. Transaction costs related to issuing a debt instrument that embodies both liability and equity components were allocated to the liability and equity components in proportion to the allocation of the proceeds and accounted for as debt issuance costs and equity issuance costs, respectively. Both debt discount and deferred debt issuance costs were amortized to interest expense over the expected life of the debt instrument. Equity issuance costs were a reduction to the proceeds allocated to the equity component. |
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 sheets. The interest contains rights in dividends, voting, conversion, participation, liquidation preference and redemption. The redemption feature is not solely within the control of TTIG. 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 stock-based 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. |
Prepaid Share Repurchase Forward Contract | Prepaid Share Repurchase Forward Contract. A prepaid share repurchase forward contract is generally a contract that allows the Company to buy from the counterparty a specified number of common shares at a specific time at a given forward price. The Company entered into such a contract and evaluated the characteristics of the forward contract to determine whether it met the definition of a derivative financial instrument pursuant to U.S. GAAP. The Company determined the forward contract is an equity contract on the Company’s common shares requiring physical settlement in common shares of the Company. As such, the transaction is recognized as a component of stockholders’ equity with a charge to additional paid-in capital equal to the prepayment amount, which represents the cash paid to the counterparty. There will be no recognition in earnings for changes in fair value in subsequent periods. |
Losses and Loss Adjustment Expenses | Losses and Loss Adjustment Expenses. Reserves for losses and loss adjustment expenses (“LAE”) are determined by establishing liabilities in amounts estimated to cover incurred losses and LAE. Such reserves are determined based on the assessment of claims reported and the development of pending claims. These reserves are based on individual case estimates for the reported losses and LAE and estimates of such amounts that are incurred but not reported. Changes in the estimated liability are charged or credited to income as the losses and LAE are settled. The estimates of unpaid losses and LAE are subject to trends in claim severity and frequency and are continually reviewed. As part of the process, the Company reviews historical data and considers various factors, including known and anticipated regulatory and legal developments, changes in social attitudes, inflation and economic conditions. As experience develops and other data becomes available, these estimates are revised, as required, resulting in increases or decreases to the existing unpaid losses and LAE. Adjustments are reflected in the results of operations in the period in which they are made and the liabilities may deviate substantially from prior estimates. Losses and LAE ceded to or recovered from reinsurers are recorded as a reduction to losses and LAE on the consolidated statement of income. |
Advance Premiums | Advance Premiums. Premium payments received prior to the policy effective date are recorded as advance premiums. Once the policy is in force, the premiums are recorded as described under “ Premium Revenue ” below. |
Premiums Receivable | Premiums Receivable. Premiums receivable represent the amount of premiums due from policyholders for insurance coverage. Premiums are recorded as receivable in the Company’s general ledger on the effective date of the policy. Premiums are billed to the policyholder 45-60 days in advance of the effective date. The policyholder is given a 30-day grace period after the effective date to pay the premium before the insurance coverage is cancelled. If the policyholder does not pay the premium, the Company can cancel the policy and has no obligation to provide insurance coverage. Unpaid renewal policies are cancelled at midnight on the last day of the period for which the policyholder has paid. The unearned premium liability for the cancelled policy is reversed along with the premium receivable balance. Therefore, there is no unpaid earned premium and credit loss associated with the cancelled policy. However, when the 30-day grace period falls between two reporting periods, the premium receivable balance at the end of the first reporting period may potentially be overstated for not considering the policy that is subsequently cancelled during the following reporting period. To mitigate the overstatement issue, the Company estimates the monetary impact from the subsequent policy cancellation by multiplying the historical cancellation rate to the premiums receivable balance at the reporting date. An allowance for uncollectible premiums, which offsets the balance of premiums receivable, is established by reducing the unearned premiums liability and earned revenues. At December 31, 2022 and 2021 , allowances for uncollectible premiums were $ 5,362 and $ 1,750 , respectively. The increase in allowances for uncollectible premiums during 2022 resulted in a $ 3,432 decrease in unearned premiums during the year ended December 31, 2022. The decrease in allowances for uncollectible premiums during 2021 resulted in a $ 318 increase in unearned premiums during the year ended December 31, 2021. |
Reinsurance | Reinsurance Ceded . In the normal course of business, the Company seeks to reduce the loss that may arise from catastrophes or other events by reinsuring certain levels of risk in various areas of exposure with other insurance enterprises or reinsurers. The Company contracts with a number of reinsurers to secure its annual reinsurance coverage, which generally becomes effective June 1st of each year. The Company purchases reinsurance each year taking into consideration probable maximum losses and reinsurance market conditions. Amounts recoverable from reinsurers are estimated in a manner consistent with the applicable reinsurance contract or contracts. Premiums ceded to other companies have been reported as a reduction of gross premiums earned. Prepaid reinsurance premiums represent the unexpired portion of premiums ceded to reinsurers. From time to time, the Company may elect to pay a reinstatement premium to a reinsurer in order to restore an amount of reinsurance coverage limit exhausted by a loss event. When that occurs, the unamortized portion of the existing prepaid reinsurance premium associated with the first coverage limit will be immediately expensed. The reinstatement premium will be recognized as prepaid reinsurance premium which will be amortized to premiums ceded over the remaining coverage period of a contract. One of the Company’s current reinsurance contracts contain retrospective provisions including terms and conditions that adjust premiums based on the loss experience under the contract. In such cases, a with-and-without method is used to estimate the asset or liability amount to be recognized at each reporting date. The amount of the estimate is the difference between the net contract costs before and after the loss experience under the contract. Estimates related to premium adjustments are recognized in ceded premiums earned. These estimates are reviewed monthly based on the loss experience to date and as adjustments become necessary. Such adjustments in premiums ceded are reflected in the Company’s current operations and recorded in other assets until received upon the expiration of the contract. See Note 13 -- “Reinsurance” for additional information. The Company receives ceding commissions from ceding gross written premiums to a third-party reinsurer under one flood quota share reinsurance contract. The ceding commissions represent the reimbursement of the Company’s policy acquisition, underwriting and other operating expenses. Ceding commissions received cover a portion of premium taxes and agent commissions capitalized by the Company and a portion of non-capitalized acquisition costs and other underwriting expenses. Ceding commissions are recognized as income on a pro-rata basis over the terms of the policies reinsured, the amount of which is included in policy acquisition and other underwriting expenses in the consolidated statement of income. The unearned portion of ceding commissions that represents recovery of capitalized acquisition costs is classified as a reduction of DAC whereas the remaining unearned balance is classified as deferred revenue in other liabilities. Reinsurance Assumed. From time to time, the Company agrees to assume risk from another insurance company. Reinsurance premiums, commission, cost allowance, and reserves related to reinsured business are accounted for on a basis consistent with those used in accounting for the original policies issued and the terms of the reinsurance contracts. Premiums assumed from other insurance companies are included in gross premiums earned. Ceding commissions on assumed gross written premiums and related costs paid are reflected as DAC which is amortized as expense on a pro-rata basis over the life of the reinsurance agreement. This amortized expense is included in policy acquisition and other underwriting expenses in the consolidated statements of income. Reinsurance Recovered in Advance on Unpaid Losses. Reinsurance recovered in advance on unpaid losses represents cash received in advance from a reinsurer under a reinsurance contract to reimburse the Company’s losses and loss adjustment expenses. The Company is contractually permitted to apply these funds to offset the paid portion of reinsurance recoverable only. |
Premium Revenue | Premium Revenue. Premium revenue includes premium from the direct issuance of policies to insureds or the renewal or replacement of insureds’ policies and assumed premium for providing coverage under reinsurance agreements. Premium revenue is earned on a daily pro-rata basis over the term of the policies and is included in gross premiums earned. Unearned premiums represent the portion of the premiums attributable to the unexpired policy term. The Company reviews its policy detail and establishes an allowance for any amount outstanding for more than 90 days. |
Policy Fees | Policy Fees. Policy fees represent nonrefundable fees for insurance coverage, which are intended to reimburse a portion of the costs incurred to underwrite the policy. Policy fees are recognized ratably over the policy coverage period. |
Revenue from Claims Processing Services | Revenue from Claims Processing Services. The Company provides a claims processing service to a third-party insurance company as a third-party administrator (“TPA”). 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 processing 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 processing 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 processing services is included in other revenue in the consolidated statements of income. For the years ended December 31, 2022 and 2021 , revenues from claims processing services were $ 3,425 and $ 4,554 , respectively. At December 31, 2022 and 2021 , other assets included $ 2,543 and $ 314 , respectively, of amounts receivable attributable to this service. |
Insurance Guaranty Association Assessments | Insurance Guaranty Association Assessments. The Company’s insurance subsidiaries may be assessed by state associations such as the Florida Insurance Guaranty Association. The assessments are intended to be used for the payment of covered claims of insolvent insurance entities. The assessments are generally based on a percentage of premiums written during or following the year of insolvency. Liabilities are recognized when the assessments are probable to be imposed on the premiums on which they are expected to be based and the amounts can be reasonably estimated. An insurer is generally permitted to recover the entire amount of assessments from in-force and future policyholders through policy surcharges. U.S. GAAP provides that the Company should record an asset based on the amount of written or obligated-to-write premiums and limited to the amounts recoverable over the life of the in-force policies. |
Foreign Currency | Foreign Currency. The functional currency of the Company’s Indian subsidiary is the U.S. dollar. As such, the monetary assets and liabilities of this subsidiary are remeasured into U.S. dollars at the exchange rate in effect on the balance sheet date. Non-monetary assets and liabilities are remeasured using historical rates. Expenses recorded in the local currency are remeasured at the prevailing exchange rate. Exchange gains and losses resulting from these remeasurements are included in other operating expenses. |
Income Taxes | Income Taxes. The Company files consolidated federal and state income tax returns and allocates taxes among its subsidiaries in accordance with a written tax-allocation agreement. The Company accounts for income taxes in accordance with U.S. GAAP, resulting in two components of income tax expense and benefit: current and deferred. Current income tax expense and benefit reflects taxes to be paid or refunded for the current period by applying the provisions of the enacted tax law to the taxable income or excess of deductions over revenues. The Company determines deferred income taxes using the liability (or balance sheet) method. Under this method, the net deferred tax asset or liability is based on the tax effects of the differences between the book and tax bases of assets and liabilities, and enacted changes in tax rates and laws are recognized in the period in which they occur. Deferred income tax expense and benefit results from changes in deferred tax assets and liabilities between periods. Deferred tax assets are recognized if it is more likely than not, based on the technical merits, that the tax position will be realized or sustained upon examination. The term “more likely than not” means a likelihood of more than fifty percent; the terms “examined” and “upon examination” also include resolution of the related appeals or litigation processes, if any. A tax position that meets the more-likely-than-not recognition threshold is initially and subsequently measured as the largest amount of tax benefit that has a greater than fifty percent likelihood of being realized upon settlement with a taxing authority that has full knowledge of all relevant information. The determination of whether or not a tax position has met the more-likely-than-not recognition threshold considers the facts, circumstances, and information available at the reporting date and is subject to management’s judgment. Deferred tax assets are reduced by a valuation allowance if, based on the weight of both positive and negative evidence available including recent operating results, available tax planning strategies, and projected future taxable income, it is more likely than not that some portion or all of a deferred tax asset will not be realized. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments. The carrying amounts for the Company’s cash and cash equivalents approximate their fair values at December 31, 2022 and 2021 . Fair values for securities or financial instruments are based on the framework for measuring fair value established by U.S. GAAP (see Note 6 -- “Fair Value Measurements”). |
Stock-Based Compensation | Stock-Based Compensation. The Company accounts for stock-based compensation under the fair value recognition provisions of U.S. GAAP which require the measurement and recognition of compensation for all stock-based awards made to employees, non-employee directors (see Note 21 -- “Stock-Based Compensation”), and third-party award recipients based on estimated fair values. In accordance with U.S. GAAP, the fair value of stock-based awards granted to employees and non-employee directors 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-based vesting condition. Restricted stock grants with market-based vesting conditions are expensed over the derived service period. Expensing market-based awards may be expedited if the conditions are met sooner than anticipated. For awards granted to third-party recipients, the cost of the grant is recognized in the same period(s) and in the same manner as if the Company had paid cash. The Company’s outstanding stock-based awards include stock options, warrants, and restricted stock awards with service and market-based vesting conditions. Compensation expense related to all awards granted to employees and non-employee directors 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 statement of income. |
Basic and Diluted Earnings Per Common Share | Basic and Diluted Earnings Per Common Share. Basic earnings or loss per common share is computed by dividing net income or loss attributable to common stockholders by the weighted-average number of common shares outstanding for the period. U.S. GAAP requires the inclusion of restricted stock as participating securities since holders of the Company’s restricted stock have the right to share in dividends, if declared, equally with common stockholders. In addition, the intrinsic value of restricted stock declines when the Company experiences operating losses. As a result, holders of the Company’s restricted stock are allocated a proportional share of net income and loss determined by dividing total weighted-average shares of restricted stock by the sum of total weighted-average common shares and shares of restricted stock (the “two-class method”). Diluted earnings per common share reflect the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted as well as participating equities. During loss periods, common stock equivalents such as stock options and convertible debt are excluded from the calculation of diluted loss per share, as the inclusion would have an anti-dilutive effect. See Note 18 -- “Earnings Per Share” for potentially dilutive securities at December 31, 2022, 2021 and 2020 . |
Statutory Accounting Practices | Statutory Accounting Practices. The Company’s U.S. insurance subsidiaries comply with statutory accounting practices prescribed by the National Association of Insurance Commissioners and as adopted or permitted by the Florida Department of Financial Services, Office of Insurance Regulation (“FLOIR”). There are no state prescribed or permitted practices that have been adopted by the Company’s U.S. subsidiaries. In addition, the Company’s Bermuda insurance subsidiary prepares and files financial statements in accordance with the prescribed regulatory accounting practices of the Bermuda Monetary Authority. |
Reclassification | Reclassification. In response to the new reporting segment described in Note 15 -- “Segment Information,” the 2020 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) | 12 Months Ended |
Dec. 31, 2022 | |
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 consolidated statements of cash flows. December 31, 2022 2021 Cash and cash equivalents $ 234,863 $ 628,943 Restricted cash 2,900 2,400 Total $ 237,763 $ 631,343 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Summary of Amortized Cost, 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 December 31, 2022 and 2021, 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 Credit Loss Gain Loss Value As of December 31, 2022 U.S. Treasury and U.S. government agencies $ 463,648 $ — $ 59 $ ( 9,105 ) $ 454,602 Corporate bonds 28,378 — 20 ( 1,205 ) 27,193 State, municipalities, and political subdivisions 1,389 — — ( 6 ) 1,383 Exchange-traded debt 683 — 2 ( 52 ) 633 Redeemable preferred stock 99 — — ( 9 ) 90 Total $ 494,197 $ — $ 81 $ ( 10,377 ) $ 483,901 As of December 31, 2021 U.S. Treasury and U.S. government agencies $ 17,046 $ — $ 64 $ ( 86 ) $ 17,024 Corporate bonds 21,913 — 632 ( 53 ) 22,492 State, municipalities, and political subdivisions 1,759 — 49 — 1,808 Exchange-traded debt 767 — 44 — 811 Redeemable preferred stock 468 — — ( 20 ) 448 Total $ 41,953 $ — $ 789 $ ( 159 ) $ 42,583 |
Scheduled Contractual Maturities of Fixed-Maturity Securities | The scheduled contractual maturities of fixed-maturity securities at December 31, 2022 and 2021 are as follows: December 31, 2022 2021 Cost or Estimated Cost or Estimated Amortized Fair Amortized Fair Cost Value Cost Value Available-for-sale Due in one year or less $ 266,170 $ 265,353 $ 10,734 $ 10,826 Due after one year through five years 223,153 214,307 19,222 19,820 Due after five years through ten years 4,380 3,797 11,503 11,403 Due after ten years 494 444 494 534 $ 494,197 $ 483,901 $ 41,953 $ 42,583 |
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 fixed-maturity securities, for the years ended December 31, 2022, 2021 and 2020 were as follows: Gross Gross Realized Realized Proceeds Gains Losses Year ended December 31, 2022 $ 11,716 $ 13 $ ( 442 ) Year ended December 31, 2021 $ 23,055 $ 722 $ ( 35 ) Year ended December 31, 2020 $ 81,433 $ 1,773 $ ( 610 ) |
Summary of Securities with Gross Unrealized Loss Positions Aggregated by Investment Category | Securities with gross unrealized loss positions at December 31, 2022 and 2021, 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 As of December 31, 2022 Gross Estimated Gross Estimated Gross Estimated U.S. Treasury and U.S. government agencies $ ( 8,701 ) $ 269,116 $ ( 404 ) $ 4,644 $ ( 9,105 ) $ 273,760 Corporate bonds ( 909 ) 23,028 ( 296 ) 2,541 ( 1,205 ) 25,569 States, municipalities, and political ( 6 ) 1,383 — — ( 6 ) 1,383 Exchange-traded debt ( 52 ) 463 — — ( 52 ) 463 Redeemable preferred stock ( 9 ) 90 — — ( 9 ) 90 Total available-for-sale securities $ ( 9,677 ) $ 294,080 $ ( 700 ) $ 7,185 $ ( 10,377 ) $ 301,265 Less Than Twelve Months Twelve Months or Longer Total As of December 31, 2021 Gross Estimated Gross Estimated Gross Estimated U.S. Treasury and U.S. government agencies $ ( 73 ) $ 9,809 $ ( 13 ) $ 616 $ ( 86 ) $ 10,425 Corporate bonds ( 53 ) 4,452 — — ( 53 ) 4,452 Redeemable preferred stock ( 20 ) 442 — — ( 20 ) 442 Total available-for-sale securities $ ( 146 ) $ 14,703 $ ( 13 ) $ 616 $ ( 159 ) $ 15,319 |
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 fixed-maturity securities for the years ended December 31, 2022 and 2021: 2022 2021 Balance at January 1 $ — $ 588 Reductions for securities sold — ( 9 ) Reductions for securities exchanged — ( 579 ) Balance at December 31 $ — $ — |
Summary of 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 December 31, 2022 and 2021, 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 December 31, 2022 $ 36,272 $ 2,078 $ ( 3,767 ) $ 34,583 December 31, 2021 $ 46,276 $ 6,335 $ ( 871 ) $ 51,740 |
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 related to equity securities still held. Years Ended December 31, 2022 2021 2020 Net (losses) gains recognized $ ( 8,149 ) $ 5,486 $ 435 Exclude: Net realized (losses) gains recognized for ( 996 ) 4,123 ( 244 ) Net unrealized (losses) gains recognized $ ( 7,153 ) $ 1,363 $ 679 |
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 years ended December 31, 2022, 2021 and 2020 were as follows: Gross Gross Proceeds Gains Losses Year ended December 31, 2022 $ 31,605 $ 2,224 $ ( 3,220 ) Year ended December 31, 2021 $ 112,310 $ 6,280 $ ( 2,157 ) Year ended December 31, 2020 $ 47,312 $ 2,868 $ ( 3,112 ) |
Schedule of Company's Investments in Limited Partnerships | The following table provides information related to the Company’s investments in limited partnerships: December 31, 2022 December 31, 2021 Carrying Unfunded Carrying Unfunded Investment Strategy Value Balance (%) (a) Value Balance (%) (a) Primarily in senior secured loans and, to $ 4,146 $ — 15.37 $ 6,076 $ 2,085 15.37 Value creation through active distressed 2,528 — 1.66 3,423 — 1.69 High returns and long-term capital 5,319 — 0.18 6,270 1,401 0.18 Value-oriented investments in less liquid 3,470 — 0.56 4,437 — 0.57 Value-oriented investments in mature real 7,457 3,125 1.32 5,977 4,537 1.36 Risk-adjusted returns on credit and equity 2,782 2,536 0.98 1,950 3,050 0.47 Total $ 25,702 $ 5,661 $ 28,133 $ 11,073 (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) The term is expected to be the later of ten years or two years following the maturity of the fund’s outstanding leverage. Although the capital commitment period has expired, follow-on investments and pending commitments may require additional fundings. (d) The term has been extended for a second additional one-year period to June 30, 2023 . Although the capital commitment period has ended, the general partner could still request an additional funding 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 an eight-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) The term is expected to end November 27, 2027 . The term may be extended for up to four additional one-year periods at the general partner’s discretion, and up to two additional one-year periods with the consent of the advisory committee. (k) Expected to have an eight-year term after the final admission date. The term may be extended for an additional one-year period at the general partner’s discretion, and up to two additional one-year periods with the consent of either the advisory committee or a majority of limited partners. |
Summary of Unaudited Financial Information and Unaudited Financial Position | The following tables provide FMJV’s summarized unaudited financial results and the unaudited financial positions: Years Ended December 31, 2022 2021 2020 Operating results: Total revenues $ 572 $ 540 $ — Total expenses ( 22 ) ( 77 ) ( 64 ) Net income (loss) $ 550 $ 463 $ ( 64 ) The Company’s share of net income (loss)* $ 495 $ 417 $ ( 57 ) * Included in net investment income in the Company’s consolidated statements of income. December 31, 2022 2021 Balance sheet: Property and equipment, net $ — $ 357 Cash — 29 Other — 18 Total assets $ — $ 404 Members’ capital $ — $ 404 Total members’ capital $ — $ 404 Investment in unconsolidated joint venture, at equity** $ 18 $ 363 ** Includes the 90 % share of FMKT Mel JV’s operating results. |
Summary of Real Estate Investments | Real estate investments consist of the following as of December 31, 2022 and 2021: December 31, 2022 2021 Land $ 38,327 $ 39,720 Land improvements 12,138 11,917 Buildings and building improvements 29,410 29,405 Tenant and leasehold improvements 1,742 1,511 Other 1,649 1,265 Total, at cost 83,266 83,818 Less: accumulated depreciation and amortization ( 11,878 ) ( 9,922 ) Real estate investments $ 71,388 $ 73,896 |
Investment Income (Loss) Summarized | f) Net Investment Income Net investment income (loss), by source, is summarized as follows: Years Ended December 31, 2022 2021 2020 Available-for-sale fixed-maturity securities $ 6,367 $ 1,375 $ 4,252 Equity securities 1,204 1,411 1,388 Investment expense ( 491 ) ( 542 ) ( 497 ) Limited partnership investments 3,963 4,947 ( 1,595 ) Real estate investments 16,126 4,086 ( 620 ) Net income (loss) from unconsolidated joint venture 495 417 ( 57 ) Cash and cash equivalents 4,783 641 1,691 Short-term investments — — 2 Net investment income $ 32,447 $ 12,335 $ 4,564 |
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. Years Ended December 31, 2022 2021 2020 Operating results: Total income $ 1,252,264 $ 705,610 $ ( 1,432,907 ) Total expenses ( 139,174 ) ( 131,463 ) ( 133,281 ) Net income (loss) $ 1,113,090 $ 574,147 $ ( 1,566,188 ) December 31, 2022 2021 Balance sheet: Total assets $ 5,119,695 $ 5,855,616 Total liabilities $ 430,354 $ 564,732 |
Comprehensive Income (Loss) (Ta
Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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: Year Ended December 31, 2022 Before Tax Income Tax Net of Tax Net unrealized losses $ ( 11,355 ) $ ( 263 ) $ ( 11,092 ) Reclassification adjustment for net realized losses 429 109 320 Total other comprehensive loss $ ( 10,926 ) $ ( 154 ) $ ( 10,772 ) Year Ended December 31, 2021 Income Tax Before Tax Effect Net of Tax Net unrealized losses $ ( 692 ) $ ( 170 ) $ ( 522 ) Call and repayment gains charged to investment income ( 36 ) ( 9 ) ( 27 ) Reclassification adjustment for net realized gains ( 687 ) ( 168 ) ( 519 ) Total other comprehensive loss $ ( 1,415 ) $ ( 347 ) $ ( 1,068 ) Year Ended December 31, 2020 Income Tax Before Tax Effect Net of Tax Net unrealized gains $ 86 $ 21 $ 65 Credit losses on investments 611 150 461 Call and repayment gains charged to investment income ( 374 ) ( 92 ) ( 282 ) Reclassification adjustment for net realized gains ( 1,163 ) ( 285 ) ( 878 ) Total other comprehensive loss $ ( 840 ) $ ( 206 ) $ ( 634 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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 4.75 % Convertible Senior Notes 2042 Quoted price 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 tables present information about the Company’s financial assets measured at estimated fair value on a recurring basis. The tables indicate the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value as of December 31, 2022 and 2021: Fair Value Measurements Using (Level 1) (Level 2) (Level 3) Total As of December 31, 2022 Financial Assets: Cash and cash equivalents $ 234,863 $ — $ — $ 234,863 Restricted cash $ 2,900 $ — $ — $ 2,900 Fixed-maturity securities: U.S. Treasury and U.S. government agencies $ 446,233 $ 8,369 $ — $ 454,602 Corporate bonds 27,193 — — 27,193 States, municipalities, and political subdivisions — 1,383 — 1,383 Exchange-traded debt 633 — — 633 Redeemable preferred stock 90 — — 90 Total available-for-sale securities $ 474,149 $ 9,752 $ — $ 483,901 Equity securities $ 34,583 $ — $ — $ 34,583 Fair Value Measurements Using (Level 1) (Level 2) (Level 3) Total As of December 31, 2021 Financial Assets: Cash and cash equivalents $ 628,943 $ — $ — $ 628,943 Restricted cash $ 2,400 $ — $ — $ 2,400 Fixed-maturity securities: U.S. Treasury and U.S. government agencies $ 15,536 $ 1,488 $ — $ 17,024 Corporate bonds 22,492 — — 22,492 States, municipalities, and political subdivisions — 1,808 — 1,808 Exchange-traded debt 811 — — 811 Redeemable preferred stock 448 — — 448 Total available-for-sale securities $ 39,287 $ 3,296 $ — $ 42,583 Equity securities $ 51,740 $ — $ — $ 51,740 |
Schedule of Fair Value Information for Financial Liabilities Carried on Balance Sheet | The following tables present fair value information for liabilities that are carried on the consolidated balance sheets at amounts other than fair value as of December 31, 2022 and 2021: Carrying Fair Value Measurements Using Estimated Value (Level 1) (Level 2) (Level 3) Fair Value As of December 31, 2022 Financial Liabilities: Long-term debt: 4.75 % Convertible Senior Notes $ 167,126 $ — $ 133,167 $ — $ 133,167 4.25 % Convertible Senior Notes 23,916 — 19,473 — 19,473 3.90 % Promissory Note 8,943 — — 8,152 8,152 3.75 % Callable Promissory Note 6,789 — — 6,171 6,171 4.55 % Promissory Note 4,900 — — 4,642 4,642 Total long-term debt $ 211,674 $ — $ 152,640 $ 18,965 $ 171,605 Carrying Fair Value Measurements Using Estimated Value (Level 1) (Level 2) (Level 3) Fair Value As of December 31, 2021 Financial Liabilities: Revolving credit facility $ 15,000 $ — $ 15,000 $ — $ 15,000 Long-term debt: 4.25 % Convertible Senior Notes $ 23,885 $ — $ 33,248 $ — $ 33,248 3.90 % Promissory Note 9,287 — — 10,488 10,488 3.75 % Callable Promissory Note 7,153 — — 7,852 7,852 4.55 % Promissory Note 5,148 — — 6,051 6,051 Total long-term debt $ 45,473 $ — $ 33,248 $ 24,391 $ 57,639 |
Deferred Policy Acquisition C_2
Deferred Policy Acquisition Costs (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Insurance [Abstract] | |
Summary of Activity with Respect to Deferred Policy Acquisition Costs | The following table summarizes the activity with respect to deferred policy acquisition costs: December 31, 2022 2021 Beginning balance $ 57,695 $ 43,858 Policy acquisition costs deferred 88,496 100,800 Amortization ( 100,669 ) ( 86,963 ) Ending balance $ 45,522 $ 57,695 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Summary of Property and Equipment, Net | Property and equipment, net consists of the following: December 31, 2022 2021 Land $ 2,134 $ 2,134 Land improvements 79 — Buildings and building improvements 6,550 4,005 Computer hardware and software 16,741 13,295 Office furniture and equipment 2,955 2,561 Tenant and leasehold improvements 782 620 Other 1,767 2,136 Total, at cost 31,008 24,751 Less: accumulated depreciation and amortization ( 13,098 ) ( 10,519 ) Property and equipment, net $ 17,910 $ 14,232 |
Intangible Assets, Net (Tables)
Intangible Assets, Net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Details of Intangible Assets | The Company’s intangible assets, net consist of the following: December 31, 2022 2021 Anchor tenant relationships (a) $ 1,761 $ 1,761 In-place leases 3,579 4,215 Policy renewal rights - United 10,100 7,634 Non-compete agreements - United (b) 314 195 Total, at cost 15,754 13,805 Less: accumulated amortization ( 5,176 ) ( 3,169 ) Intangible assets, net $ 10,578 $ 10,636 (a) An anchor tenant is a tenant that attracted more customers than other tenants. (b) $ 119 was fully amortized in June 2022 and $ 195 was fully amortized in June 2021. |
Schedule of Remaining Weighted-Average Amortization Period for Intangible Assets | The remaining weighted-average amortization periods for the intangible assets as of December 31, 2022 are summarized in the table below: Anchor tenant relationships 11.5 years In-place leases 9.7 years Policy renewal rights - United 3.3 years |
Schedule of Amortization Expense for Intangible Assets | Amortization expense for intangible assets after December 31, 2022 is as follows: Year Amount 2023 $ 2,763 2024 2,759 2025 2,728 2026 1,024 2027 212 Thereafter 1,092 Total $ 10,578 |
Other Assets (Tables)
Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Summary of Other Assets | The following table summarizes the Company’s other assets: December 31, 2022 2021 Benefits receivable related to retrospective reinsurance contracts $ 16,317 $ 3,064 Reimbursement receivable under TPA service 5,445 3,525 Prepaid expenses 2,826 2,853 Deposits 491 406 Lease acquisition costs, net 832 505 Other 5,760 4,364 Total other assets $ 31,671 $ 14,717 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Summary of Long-term Debt | The following table summarizes the Company’s long-term debt: December 31, 2022 2021 4.75 % Convertible Senior Notes, due June 1, 2042 $ 172,500 $ — 4.25 % Convertible Senior Notes, due March 1, 2037 23,916 23,916 3.90 % Promissory Note, due through April 1, 2032 9,072 9,431 3.75 % Callable Promissory Note, due through September 1, 2036 6,871 7,246 4.55 % Promissory Note, due through August 1, 2036 4,968 5,225 Finance lease liabilities, due through October 15, 2024 13 31 Total principal amount 217,340 45,849 Less: unamortized issuance costs ( 5,653 ) ( 345 ) Total long-term debt $ 211,687 $ 45,504 |
Summary of Future Maturities of Long-Term Debt | The following table summarizes future maturities of long-term debt as of December 31, 2022 , which takes into consideration the assumption that the 4.75 % Convertible Senior Notes and 4.25 % Convertible Senior Notes are repurchased at their respective next earliest call dates: Due in 12 months following December 31, 2022 $ 1,043 2023 1,075 2024 1,117 2025 1,163 2026 197,627 Thereafter 15,315 Total $ 217,340 |
Schedule of Interest Expense Related to Long-Term Debt | Information with respect to interest expense related to long-term debt is as follows: Years Ended December 31, 2022 2021 2020 Interest Expense: Contractual interest $ 6,835 $ 5,384 $ 7,083 Non-cash expense (a) 706 827 4,247 Capitalized interest (b) — — ( 97 ) Total $ 7,541 $ 6,211 $ 11,233 (a) Includes amortization of debt discount and issuance costs. Amortization of debt discount discontinued effective January 1, 2021 upon the Company’s adoption of Accounting Standards Update No. 2020-06 (“ASU 2020-06”) “Debt - Debt with Conversion and Other Options and Derivatives and Hedging - Contracts in Entity’s Own Equity.” (b) Interest was capitalized for construction projects. |
Reinsurance (Tables)
Reinsurance (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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: Years Ended December 31, 2022 2021 2020 Premiums Written: Direct $ 713,103 $ 545,441 $ 459,615 Assumed 12,916 128,948 44,539 Gross written 726,019 674,389 504,154 Ceded ( 261,144 ) ( 199,741 ) ( 153,458 ) Net premiums written $ 464,875 $ 474,648 $ 350,696 Premiums Earned: Direct $ 651,455 $ 478,546 $ 412,999 Assumed 73,261 98,498 2,919 Gross earned 724,716 577,044 415,918 Ceded ( 261,144 ) ( 199,741 ) ( 153,458 ) Net premiums earned $ 463,572 $ 377,303 $ 262,460 |
Losses and Loss Adjustment Ex_2
Losses and Loss Adjustment Expenses (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Insurance [Abstract] | |
Liability for Unpaid Losses and Loss Adjustment Expenses | Activity in the liability for losses and LAE is summarized as follows: Years Ended December 31, 2022 2021 2020 Net balance, beginning of year* $ 172,410 $ 141,065 $ 98,174 Incurred, net of reinsurance, related to: Current year 330,836 199,888 158,236 Prior years 40,627 27,637 1,800 Total incurred, net of reinsurance 371,463 227,525 160,036 Paid, net of reinsurance, related to: Current year ( 169,641 ) ( 95,809 ) ( 71,772 ) Prior years ( 127,686 ) ( 100,371 ) ( 45,373 ) Total paid, net of reinsurance ( 297,327 ) ( 196,180 ) ( 117,145 ) Net balance, end of year 246,546 172,410 141,065 Add: reinsurance recoverable before allowance for credit losses 617,219 64,755 71,104 Gross balance, end of year $ 863,765 $ 237,165 $ 212,169 * Net balance represents beginning-of-year liability for unpaid losses and LAE less beginning-of-year reinsurance recoverable for unpaid losses and LAE. |
Schedule of Incurred and Paid Claims Development | The following is information about incurred and paid claims development as of December 31, 2022, net of reinsurance, as well as cumulative claim frequency and the total of incurred-but-not-reported liabilities plus expected development on reported claims included within the net incurred claims amounts. The information about incurred and paid claims development for the years ended December 31, 2015 to 2013 is presented as supplementary information and is unaudited. Homeowners Multi-peril and Dwelling Fire Insurance (a) As of December 31, 2022 Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance Total of Cumulative Year 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Claims Amounts) (b) 2013 $ 67,579 $ 69,932 $ 69,906 $ 72,015 $ 71,604 $ 73,763 $ 74,043 $ 74,543 $ 74,543 $ 74,454 $ 14 7,009 2014 — 75,810 81,773 84,917 88,053 90,084 92,454 92,945 93,181 93,358 372 7,661 2015 — — 78,017 90,902 96,173 101,272 102,149 102,587 103,135 103,671 266 7,665 2016 — — — 81,446 90,879 92,684 92,986 92,752 92,333 92,738 371 6,936 2017 — — — — 91,443 88,937 89,652 90,958 90,877 90,652 1,265 5,776 2018 — — — — — 79,436 83,976 83,123 83,234 82,816 3,569 4,771 2019 — — — — — — 95,467 94,018 96,821 99,754 7,916 5,401 2020 — — — — — — — 126,086 133,349 159,758 15,460 8,253 2021 — — — — — — — — 187,164 186,606 44,550 11,754 2022 — — — — — — — — — 263,626 127,833 12,563 Total $ 1,247,433 Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance Year 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2013 $ 40,240 $ 57,374 $ 64,257 $ 68,106 $ 70,224 $ 72,492 $ 73,420 $ 73,986 $ 74,260 $ 74,440 2014 — 47,650 68,897 77,712 82,463 87,125 90,707 92,264 92,924 92,986 2015 — — 50,939 76,042 87,784 95,179 99,200 101,424 102,486 103,405 2016 — — — 51,663 73,037 83,311 89,144 90,989 92,001 92,367 2017 — — — — 43,039 66,996 78,808 83,383 86,364 89,387 2018 — — — — — 41,014 63,958 71,809 76,311 79,247 2019 — — — — — — 47,471 70,182 81,941 91,839 2020 — — — — — — — 56,173 108,388 144,298 2021 — — — — — — — — 85,895 142,054 2022 — — — — — — — — — 135,793 Total $ 1,045,816 All outstanding liabilities before 2013, net of reinsurance 10 Liabilities for loss and LAE, net of reinsurance $ 201,627 (a) Excludes losses from Wind-only insurance (2013 through 2022) and any hurricane and storm events prior to 2022. (b) The cumulative number of reported claims is measured as the number of per-policyholder, per-event claims for all coverages regardless of whether the claim results in loss or expense to the Company. Homeowners Wind-only Insurance (a) * As of December 31, 2022 Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance Total of Cumulative Year 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Claims Amounts) (b) 2015 $ — $ — $ 308 $ 401 $ 569 $ 692 $ 605 $ 582 $ 582 $ 582 $ — 100 2016 — — — 1,005 1,314 1,814 1,853 1,837 2,255 1,948 4 228 2017 — — — — 1,529 1,119 815 792 923 991 199 157 2018 — — — — — 798 708 1,061 1,109 1,226 302 137 2019 — — — — — — 1,132 1,501 1,833 2,359 589 154 2020 — — — — — — — 1,621 1,970 3,386 951 193 2021 — — — — — — — — 682 1,257 458 114 2022 — — — — — — — — — 1,284 580 122 Total $ 13,033 Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance Year 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2015 $ — $ — $ 156 $ 332 $ 465 $ 582 $ 582 $ 582 $ 582 $ 582 2016 — — — 689 1,155 1,405 1,772 1,821 1,843 1,944 2017 — — — — 484 786 789 792 792 792 2018 — — — — — 216 607 745 899 925 2019 — — — — — — 828 1,290 1,451 1,770 2020 — — — — — — — 567 1,461 2,435 2021 — — — — — — — — 415 799 2022 — — — — — — — — — 704 Total $ 9,951 Liabilities for loss and LAE, net of reinsurance $ 3,082 * The Company began writing Homeowners Wind-only insurance in 2015. (a) Excludes losses from multi-peril and dwelling fire insurance (2013 through 2022) and any hurricane and storm events prior to 2022. (b) The cumulative number of reported claims is measured as the number of per-policyholder, per-event claims for all coverages regardless of whether the claim results in loss or expense to the Company. Losses Specific to Any Hurricane and Storm Events prior to 2022 As of December 31, 2022 Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance Total of Cumulative Year 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Claims Amounts) (b) 2016 $ — $ — $ — $ 21,414 $ 24,126 $ 26,211 $ 28,133 $ 27,634 $ 27,634 $ 27,634 $ 488 2,420 2017 — — — — 53,602 54,080 53,557 53,624 53,628 53,636 2 21,776 2018 — — — — — 16,543 16,532 16,532 16,532 16,476 — 1,719 2019 — — — — — — — — — — — 144 2020 — — — — — — — 30,264 46,284 55,235 8,179 3,291 2021 — — — — — — — — 11,689 13,000 384 2,597 2022 — — — — — — — — — — — 11 Total $ 165,981 Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance Year 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2016 $ — $ — $ — $ 12,227 $ 20,025 $ 23,316 $ 25,849 $ 26,098 $ 26,807 $ 27,146 2017 — — — — 43,905 47,514 47,524 49,425 53,216 53,634 2018 — — — — — 13,391 15,992 16,436 16,477 16,476 2019 — — — — — — — — — — 2020 — — — — — — — 14,964 34,771 47,056 2021 — — — — — — — — 9,323 12,616 2022 — — — — — — — — — — Total $ 156,928 Liabilities for loss and LAE, net of reinsurance $ 9,053 (b) The cumulative number of reported claims is measured as the number of per-policyholder, per-event claims for all coverages regardless of whether the claim results in loss or expense to the Company. Losses Specific to Hurricane Ian ( 2022) As of December 31, 2022 Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance Total of Cumulative Year 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Claims Amounts) (b) 2022 $ — $ — $ — $ — $ — $ — $ — $ — $ — $ 65,325 $ 32,327 12,861 Total $ 65,325 Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance Year 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2022 $ — $ — $ — $ — $ — $ — $ — $ — $ — $ 32,998 Total $ 32,998 Liabilities for loss and LAE, net of reinsurance $ 32,327 (b) The cumulative number of reported claims is measured as the number of per-policyholder, per-event claims for all coverages regardless of whether the claim results in loss or expense to the Company. |
Reconciliation of Net Incurred and Paid Loss Development Tables to Liability for Losses and Loss Adjustment Expenses | The reconciliation of the net incurred and paid loss development tables to the liability for losses and loss adjustment expenses is as follows: December 31, 2022 2021 Net outstanding liabilities Homeowners multi-peril and dwelling fire insurance $ 201,627 $ 155,147 Homeowners Wind-only insurance 3,082 1,911 Losses specific to any hurricane and storm events prior to 2022 9,053 15,172 Losses specific to Hurricane Ian (2022) 32,327 — Other short-duration insurance lines 457 180 Liabilities for unpaid losses and loss adjustment expenses, net of reinsurance 246,546 172,410 Reinsurance recoverables 617,219 64,755 Total gross liability for unpaid losses and loss adjustment expenses $ 863,765 $ 237,165 |
Supplementary and Unaudited Information about Average Historical Claims Duration | The following is supplementary and unaudited information about average historical claims duration as of December 31, 2022: Average Annual Percentage Payout of Incurred Losses by Age, Net of Reinsurance Years 1 2 3 4 5 6 7 8 9 10 Homeowners multi-peril and dwelling fire 48.1 % 22.4 % 8.9 % 3.6 % 0.2 % 1.1 % 0.4 % 0.0 % 0.0 % 0.0 % Homeowners Wind-only insurance 31.2 % 23.6 % 12.7 % 7.4 % 0.1 % 0.2 % 0.8 % 0.0 % * * Other short-duration insurance lines 55.7 % 24.7 % 2.0 % 0.0 % 0.0 % 0.0 % 0.0 % — — — Losses specific to any hurricane and storm 56.5 % 22.0 % 9.9 % 2.7 % 2.5 % 0.7 % 0.2 % — — — Losses specific to Hurricane Ian (2022) 50.5 % — — — — — — — — — * The Company began writing Homeowners Wind-only insurance in 2015. |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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. For the Year Ended December 31, 2022 HCPCI TypTap Real Corporate/ Reclassification/ Consolidated Revenue: Gross premiums earned (c) $ 439,499 $ 298,215 $ — $ — $ ( 12,998 ) $ 724,716 Premiums ceded ( 162,112 ) ( 110,299 ) — — 11,267 ( 261,144 ) Net premiums earned 277,387 187,916 — — ( 1,731 ) 463,572 Net income from investment portfolio 1,641 3,991 — 2,736 15,739 24,107 Policy fee income 2,482 1,797 — — — 4,279 Gain on involuntary conversion — — 13,402 — ( 13,402 ) — Gain from remeasurement of contingent liabilities 585 2,532 — — — 3,117 Other 25,155 2,302 10,365 3,752 ( 37,086 ) 4,488 Total revenue 307,250 198,538 23,767 6,488 ( 36,480 ) 499,563 Expenses: Losses and loss adjustment expenses 204,549 173,828 — — ( 6,914 ) 371,463 Amortization of deferred policy acquisition costs 56,841 43,828 — — — 100,669 Other policy acquisition expenses 2,557 1,905 — — ( 154 ) 4,308 Stock-based compensation expense 3,879 3,512 — 7,716 — 15,107 Interest expense — 883 892 6,875 ( 882 ) 7,768 Depreciation and amortization 626 3,185 2,501 868 ( 2,401 ) 4,779 Impairment loss 652 1,632 — — — 2,284 Personnel and other operating expenses 44,752 31,548 4,884 6,548 ( 26,129 ) 61,603 Total expenses 313,856 260,321 8,277 22,007 ( 36,480 ) 567,981 (Loss) income before income taxes $ ( 6,606 ) $ ( 61,783 ) $ 15,490 $ ( 15,519 ) $ — $ ( 68,418 ) Total revenue from non-affiliates (d) $ 273,222 $ 207,728 $ 22,413 $ 3,937 Gross premiums written $ 377,860 $ 348,159 (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) Gross premiums earned under HCPCI Insurance Operations consist of $ 426,501 from HCPCI and $ 12,998 from a reinsurance company. (d) Represents amounts before reclassification of certain revenue and expenses to conform with an insurance company’s presentation. For the Year Ended December 31, 2021 HCPCI TypTap Real Corporate/ Reclassification/ Consolidated Revenue: Gross premiums earned (c) $ 404,362 $ 175,907 $ — $ — $ ( 3,225 ) $ 577,044 Premiums ceded ( 140,902 ) ( 61,534 ) — — 2,695 ( 199,741 ) Net premiums earned 263,460 114,373 — — ( 530 ) 377,303 Net income from investment portfolio 8,130 1,306 — 6,613 4,121 20,170 Policy fee income 2,794 1,201 — — — 3,995 Other 6,356 1,606 12,226 1,794 ( 15,535 ) 6,447 Total revenue 280,740 118,486 12,226 8,407 ( 11,944 ) 407,915 Expenses: Losses and loss adjustment expenses 147,198 80,863 — — ( 536 ) 227,525 Amortization of deferred policy acquisition costs 56,470 30,493 — — — 86,963 Other policy acquisition expenses 2,851 4,100 — — — 6,951 Stock-based compensation expense 3,553 3,380 — 6,821 — 13,754 Interest expense — 113 1,202 5,467 ( 382 ) 6,400 Depreciation and amortization 86 1,336 2,319 884 ( 2,441 ) 2,184 Debt conversion expense — — — 1,754 — 1,754 Personnel and other operating expenses 20,647 28,357 4,424 6,308 ( 8,585 ) 51,151 Total expenses 230,805 148,642 7,945 21,234 ( 11,944 ) 396,682 Income (loss) before income taxes $ 49,935 $ ( 30,156 ) $ 4,281 $ ( 12,827 ) $ — $ 11,233 Total revenue from non-affiliates (d) $ 277,333 $ 119,703 $ 10,872 $ 7,406 Gross premiums written $ 426,910 $ 247,479 (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) Gross premiums earned under HCPCI Insurance Operations consist of $ 401,137 from HCPCI and $ 3,225 from a reinsurance company. (d) Represents amounts before reclassification of certain revenue and expenses to conform with an insurance company’s presentation. For the Year Ended December 31, 2020 HCPCI TypTap Real Corporate/ Reclassification/ Consolidated Revenue: Gross premiums earned (c) $ 342,764 $ 78,836 $ — $ — $ ( 5,682 ) $ 415,918 Premiums ceded ( 130,318 ) ( 28,822 ) — — 5,682 ( 153,458 ) Net premiums earned 212,446 50,014 — — — 262,460 Net income from investment portfolio 6,423 793 3 15 ( 1,602 ) 5,632 Policy fee income 2,702 820 — — — 3,522 Gain on involuntary conversion — — 36,969 — — 36,969 Other 1,768 100 9,502 1,948 ( 11,464 ) 1,854 Total revenue 223,339 51,727 46,474 1,963 ( 13,066 ) 310,437 Expenses: Losses and loss adjustment expenses 125,977 34,059 — — — 160,036 Amortization of deferred policy acquisition costs 35,410 13,715 — — — 49,125 Other policy acquisition expenses 3,496 1,865 — — — 5,361 Stock-based compensation expense 1,645 1,808 — 4,680 — 8,133 Interest expense — 2 1,947 10,709 ( 924 ) 11,734 Depreciation and amortization 85 1,102 2,526 634 ( 2,494 ) 1,853 Loss on repurchases of convertible senior notes — — — 150 — 150 Loss on extinguishment of debt — — 98 — — 98 Personnel and other operating expenses 17,778 15,637 5,388 7,864 ( 9,648 ) 37,019 Total expenses 184,391 68,188 9,959 24,037 ( 13,066 ) 273,509 Income (loss) before income taxes $ 38,948 $ ( 16,461 ) $ 36,515 $ ( 22,074 ) $ — $ 36,928 Total revenue from non-affiliates (d) $ 221,633 $ 52,807 $ 44,709 $ 640 Gross premiums written $ 399,299 $ 104,855 (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 under HCPCI Insurance Operations consist of $ 337,082 from HCPCI and $ 5,682 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 Sheets | The following table presents segment assets reconciled to the Company’s total assets on the consolidated balance sheets: December 31, 2022 2021 Segments: HCPCI Insurance Operations $ 912,233 $ 676,509 TypTap Group 704,429 369,600 Real Estate Operations 126,001 127,651 Corporate and Other 159,378 65,349 Consolidation and Elimination ( 98,713 ) ( 62,252 ) Total assets $ 1,803,328 $ 1,176,857 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Of Leases [Abstract] | |
Disclosure of right-of-use assets and liabilities for operating and finance leases | The table below summarizes the Company’s ROU assets and corresponding liabilities for operating and finance leases: December 31, 2022 2021 Operating leases: ROU assets $ 777 $ 2,204 Liabilities $ 721 $ 2,203 Finance leases: ROU assets $ 80 $ 86 Liabilities $ 13 $ 31 The Company’s lease of office space in India for its information technology operations expired in January 2022 and a new lease agreement was entered into effective February 2022 with an initial term of nine years . In December 2022, the Company notified the FDOT of the election to terminate one of the operating leases for office space effective January 31, 2023, resulting in a derecognition of the ROU assets and its corresponding liabilities by $ 553 . |
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 51 months Yes (a), (b) Office space 3 to 9 years Yes (b), (c) Finance lease: Office equipment 3 to 5 years Not applicable (d) |
Disclosure of lease liabilities maturities | As of December 31, 2022, maturities of lease liabilities were as follows: Leases Operating Finance Due in Year 2023 $ 110 $ 11 2024 91 2 2025 96 — 2026 101 — 2027 106 — Thereafter 361 — Total lease payments 865 13 Less: interest 144 — Total lease obligations $ 721 $ 13 |
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: Years Ended December 31, 2022 2021 Lease costs: Finance lease costs: Amortization – ROU assets* $ 16 $ 19 Interest expense 1 1 Operating lease costs* 1,219 1,622 Short-term lease costs* 408 348 Total lease costs $ 1,644 $ 1,990 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows – finance leases $ 1 $ 1 Operating cash flows – operating leases $ 1,194 $ 1,626 Financing cash flows – finance leases $ 18 $ 19 December 31, 2022 Weighted-average remaining lease term: Finance leases (in years) 1.1 Operating leases (in years) 7.9 Weighted-average discount rate: Finance leases (%) 3.4 % Operating leases (%) 4.5 % * Included in other operating expenses on 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 Class of Assets Initial Term Option and 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 (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Summary of Income Tax Expense | A summary of income tax (benefit) expense is as follows: Years Ended December 31, 2022 2021 2020 Current: Federal $ ( 3,853 ) $ 2,332 $ 1,089 State ( 275 ) 415 30 Foreign 194 102 106 Total current taxes ( 3,934 ) 2,849 1,225 Deferred: Federal ( 7,828 ) 489 6,694 State ( 2,023 ) 653 1,436 Foreign ( 30 ) — ( 7 ) Total deferred taxes ( 9,881 ) 1,142 8,123 Income tax (benefit) expense $ ( 13,815 ) $ 3,991 $ 9,348 |
Summary of the Differences Between the Statutory Federal Income Tax Rate and the Effective Tax Rate | The reasons for the differences between the statutory federal income tax rate and the effective tax rate are summarized as follows: Years Ended December 31, 2022 2021 2020 Amount % Amount % Amount % Income taxes at statutory rate $ ( 14,368 ) 21.0 $ 2,359 21.0 $ 7,755 21.0 (Decrease) increase in income taxes State income taxes, net of federal ( 2,812 ) 4.1 402 3.6 1,364 3.7 Effects of tax rate changes — — 437 3.9 — — Stock-based compensation ( 431 ) 0.6 ( 298 ) ( 2.7 ) ( 296 ) ( 0.8 ) Non-deductible executive compensation 1,252 ( 1.8 ) 1,008 9.0 757 2.0 Change in valuation allowance 2,549 ( 3.7 ) — — — — Other ( 5 ) — 83 0.7 ( 232 ) ( 0.6 ) Income tax (benefit) expense $ ( 13,815 ) 20.2 $ 3,991 35.5 $ 9,348 25.3 |
Significant Components of Net Deferred Income Tax Liabilities | Significant components of the Company’s net deferred income tax liabilities are as follows: December 31, 2022 2021 Deferred tax assets: Net operating loss carryforwards $ 13,883 $ — Unearned premiums 12,588 14,174 Losses and loss adjustment expenses 3,013 2,591 Stock-based compensation 1,570 1,660 Prepaid expenses — 658 Unearned revenue 426 237 Net unrealized investment losses 428 — Basis difference related to convertible senior notes 300 169 Accrued expenses 163 110 Credit losses 244 151 Organizational costs 128 102 Bad debt reserve 44 56 Other 85 — Total deferred tax assets 32,872 19,908 Valuation allowance ( 2,549 ) — Total deferred tax assets, net of valuation allowance 30,323 19,908 Deferred tax liabilities: Gain on involuntary conversion ( 12,500 ) ( 9,202 ) Deferred policy acquisition costs ( 12,156 ) ( 15,089 ) Intangible assets ( 1,878 ) ( 2,450 ) Basis difference related to partnership investments ( 2,942 ) ( 1,313 ) Prepaid expenses ( 703 ) — Net unrealized investment gains — ( 1,539 ) Property and equipment ( 1,515 ) ( 1,511 ) Other ( 333 ) ( 543 ) Total deferred tax liabilities ( 32,027 ) ( 31,647 ) Net deferred tax liabilities $ ( 1,704 ) $ ( 11,739 ) |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Summary of Numerator and Denominator of Basic and Diluted Earnings (loss) Per Common Share | A summary of the numerator and denominator of the basic and diluted earnings per common share is presented below: Loss Shares (a) Per Share Year Ended December 31, 2022 Net loss $ ( 54,603 ) Less: Net income attributable to redeemable ( 9,106 ) Less: TypTap Group’s net loss attributable to 5,198 Net loss attributable to HCI ( 58,511 ) Less: Loss attributable to participating securities 3,463 Basic Loss Per Share: Loss allocated to common stockholders ( 55,048 ) 8,817 $ ( 6.24 ) Effect of Dilutive Securities: * Stock options — — Convertible senior notes — — Warrants — — Diluted Loss Per Share: Loss available to common stockholders and $ ( 55,048 ) 8,817 $ ( 6.24 ) (a) Shares in thousands. * Convertible senior notes, stock options, and warrants were excluded due to antidilutive effect. Income Shares (a) Per Share Year Ended December 31, 2021 Net income $ 7,242 Less: Net income attributable to redeemable ( 7,399 ) Less: TypTap Group’s net loss attributable to 2,013 Net income attributable to HCI 1,856 Less: Income attributable to participating securities ( 24 ) Basic Earnings Per Share: Income allocated to common stockholders 1,832 8,092 $ 0.23 Effect of Dilutive Securities: * Stock options — 207 Warrants — 281 Diluted Earnings Per Share: Income available to common stockholders and $ 1,832 8,580 $ 0.21 (a) Shares in thousands. * Convertible senior notes were excluded due to antidilutive effect. Income Shares (a) Per Share Year Ended December 31, 2020 Net income $ 27,580 Less: Income attributable to participating securities ( 1,462 ) Basic Earnings Per Share: Income allocated to common stockholders 26,118 7,351 $ 3.55 Effect of Dilutive Securities: Stock options — 23 Convertible senior notes 7,705 2,320 Diluted Earnings Per Share: Income available to common stockholders and $ 33,823 9,694 $ 3.49 (a) Shares in thousands. |
Redeemable Noncontrolling Int_2
Redeemable Noncontrolling Interest (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Noncontrolling Interest [Abstract] | |
Summary of Activity of Redeemable Noncontrolling Interest | The following table summarizes the activity of redeemable noncontrolling interest during the years ended December 31, 2022 and 2021: 2022 2021 Balance at January 1 $ 89,955 $ — 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 5,842 4,208 Accretion - increasing dividend rates 3,264 3,191 Dividends paid ( 5,508 ) ( 2,542 ) Balance at December 31 $ 93,553 $ 89,955 * Net decrease related to warrants of $ 8,640 . |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of Company's Stock Option Plan Activity | A summary of the stock option activity for the years ended December 31, 2022, 2021 and 2020 is as follows (option amounts not in thousands): Number of Weighted Weighted Aggregate 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 December 31, 2020 440,000 $ 45.25 7.6 years $ 3,113 Outstanding at December 31, 2021 440,000 $ 45.25 6.6 years $ 18,119 Outstanding at December 31, 2022 440,000 $ 45.25 5.6 years $ — Exercisable at December 31, 2022 357,500 $ 44.23 5.3 years $ — |
Information about Options Exercised | The following table summarizes information about options exercised for the years ended December 31, 2022, 2021 and 2020 (option amounts not in thousands): 2022 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 year ended December 31, 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 years ended December 31, 2022, 2021 and 2020 is as follows: Number of Weighted Nonvested at January 1, 2020 396,760 $ 41.71 Granted 192,680 $ 45.57 Vested ( 146,801 ) $ 40.54 Forfeited ( 18,852 ) $ 43.60 Nonvested at December 31, 2020 423,787 $ 43.79 Granted 564,426 $ 38.79 Vested ( 109,791 ) $ 43.19 Cancelled ( 142,760 ) $ 43.77 Forfeited ( 55,665 ) $ 44.01 Nonvested at December 31, 2021 679,997 $ 39.72 Granted 7,000 $ 69.17 Vested ( 333,308 ) $ 40.01 Forfeited ( 11,230 ) $ 45.00 Nonvested at December 31, 2022 342,459 $ 39.86 |
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 years ended December 31, 2022, 2021 and 2020. 2022 2021 2020 Deferred tax benefits recognized $ 1,780 $ 1,397 $ 1,296 Tax benefits realized for restricted stock and paid dividends $ 2,582 $ 1,519 $ 1,448 Fair value of vested restricted stock $ 13,337 $ 4,742 $ 5,952 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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. Year Amount 2023 $ 91,350 2024 91,350 Total $ 182,700 |
Rental Income Due Under Non-Cancellable Operating Leases | Expected annual rental income due under non-cancellable operating leases for all properties owned at December 31, 2022 is as follows: Year Amount 2023 $ 4,066 2024 4,058 2025 3,900 2026 3,176 2027 2,506 Thereafter 11,853 Total $ 29,559 |
Quarterly Results of Operatio_2
Quarterly Results of Operations (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of Unaudited Quarterly Results of Operations | The tables below summarize unaudited quarterly results of operations for 2022, 2021 and 2020. Three Months Ended 03/31/22 06/30/22 09/30/22 12/31/22 Net premiums earned $ 125,763 $ 124,919 $ 106,972 $ 105,918 Total revenue 127,040 125,926 126,654 119,943 Losses and loss adjustment expenses 72,704 86,830 139,794 72,135 Policy acquisition and other underwriting expenses 29,408 26,863 24,678 24,028 Interest expense 601 1,515 2,813 2,839 Total expenses 123,039 137,486 190,256 117,200 Income (loss) before income taxes 4,001 ( 11,560 ) ( 63,602 ) 2,743 Net income (loss) 2,791 ( 8,542 ) ( 51,503 ) 2,651 Comprehensive income (loss) 7 ( 10,171 ) ( 58,804 ) 3,593 Earnings (loss) per share: Basic $ 0.09 $ ( 1.04 ) $ ( 5.66 ) $ 0.18 Diluted* $ 0.09 $ ( 1.04 ) $ ( 5.66 ) $ 0.18 * During the quarter ended March 31, 2022, the convertible senior notes were antidilutive. During the quarters ended June 30, 2022, September 30, 2022 and December 31, 2022, the convertible senior notes, stock options and warrants were antidilutive. Three Months Ended 03/31/21 06/30/21 09/30/21 12/31/21 Net premiums earned $ 87,843 $ 93,004 $ 94,232 $ 102,224 Total revenue 94,874 101,504 99,217 112,320 Losses and loss adjustment expenses 45,751 55,917 62,664 63,193 Policy acquisition and other underwriting expenses 23,065 23,169 23,340 24,158 Interest expense 2,079 2,000 1,664 657 Total expenses 84,772 96,407 105,721 109,782 Income (loss) before income taxes 10,102 5,097 ( 6,504 ) 2,538 Net income (loss) 6,845 3,830 ( 4,868 ) 1,435 Comprehensive income (loss) 6,705 3,470 ( 5,129 ) 1,128 Earnings (loss) per share: Basic $ 0.82 $ 0.25 $ ( 0.72 ) $ 0.01 Diluted** $ 0.75 $ 0.24 $ ( 0.72 ) $ 0.01 ** During the quarters ended June 30, 2021 and December 31, 2021, the convertible senior notes were antidilutive. During the quarter ended September 30, 2021, the convertible senior notes, stock options and warrants were antidilutive. Three Months Ended 03/31/20 06/30/20 09/30/20 12/31/20 Net premiums earned $ 61,646 $ 73,449 $ 62,463 $ 64,902 Total revenue 55,380 80,717 104,027 70,313 Losses and loss adjustment expenses 28,078 39,843 51,743 40,372 Policy acquisition and other underwriting expenses 11,826 12,991 14,210 14,832 Interest expense 2,970 3,020 2,856 2,888 Total expenses 54,723 68,894 82,491 67,401 Income before income taxes 657 11,823 21,536 2,912 Net income 547 8,936 15,390 2,707 Comprehensive (loss) income ( 1,585 ) 10,286 15,634 2,611 Earnings per share: Basic $ 0.07 $ 1.16 $ 1.97 $ 0.35 Diluted*** $ 0.07 $ 1.08 $ 1.68 $ 0.35 *** During the quarters ended March 31, 2020 and December 31, 2020, the convertible senior notes were antidilutive. |
Regulatory Requirements and R_2
Regulatory Requirements and Restrictions (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Regulatory Requirements And Restrictions [Abstract] | |
Summary of Required Ratio of Gross and Net Written Premium to Surplus | The ratios of gross and net written premiums to surplus, which the Company’s insurance subsidiaries have met the requirements for, are summarized below: Years Ended December 31, 2022 2021 2020 HCPCI: Gross 3.30 to 1 3.21 to 1 3.02 to 1 Net 1.66 to 1 2.01 to 1 1.84 to 1 TypTap: Gross 4.11 to 1 2.40 to 1 2.47 to 1 Net 2.34 to 1 1.61 to 1 1.50 to 1 |
Condensed Financial Informati_2
Condensed Financial Information of HCI Group, Inc. (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Condensed Financial Information Disclosure [Abstract] | |
Balance Sheets | Balance Sheets December 31, 2022 2021 Assets Cash and cash equivalents $ 102,755 $ 10,366 Fixed-maturity securities, available for sale, at fair value 34 1,637 Equity securities, at fair value 8,662 11,513 Limited partnership investments 19,446 21,722 Note receivable – related party 58,102 40,022 Investment in subsidiaries 274,785 332,596 Property and equipment, net 805 712 Intangible assets, net — 5,374 Right-of-use assets - operating leases 7,631 4,243 Income taxes receivable — 3,281 Other assets 1,515 1,595 Total assets $ 473,735 $ 433,061 Liabilities and Stockholders’ Equity Accrued expenses and other liabilities $ 1,618 $ 2,560 Lease liabilities - operating leases 7,607 4,290 Income tax payable 8,427 — Deferred income taxes, net 2 900 Revolving credit facility — 15,000 Long-term debt 191,042 23,886 Due to related parties 102,443 63,060 Total liabilities 311,139 109,696 Total stockholders’ equity 162,596 323,365 Total liabilities and stockholders’ equity $ 473,735 $ 433,061 |
Statements of Income | Statements of Income Years Ended December 31, 2022 2021 2020 Net investment income (loss) $ 5,498 $ 3,115 $ ( 676 ) Net realized investment (losses) gains ( 1,154 ) 3,344 330 Net unrealized investment (losses) gains ( 1,609 ) 92 229 Credit losses on investments — — ( 20 ) Other income 1,138 222 — Loss on repurchases of convertible senior notes — — ( 150 ) Interest expense ( 6,876 ) ( 5,467 ) ( 10,710 ) Debt conversion expense — ( 1,754 ) — Operating expenses ( 9,877 ) ( 9,056 ) ( 6,887 ) Loss before income tax benefit and equity in (loss) income of subsidiaries ( 12,880 ) ( 9,504 ) ( 17,884 ) Income tax benefit 1,700 2,086 4,024 Net loss before equity in (loss) income of subsidiaries ( 11,180 ) ( 7,418 ) ( 13,860 ) Equity in (loss) income of subsidiaries ( 47,331 ) 9,274 41,440 Net (loss) income $ ( 58,511 ) $ 1,856 $ 27,580 |
Statements of Cash Flows | Statements of Cash Flows Years Ended December 31, 2022 2021 2020 Cash flows from operating activities: Net (loss) income $ ( 58,511 ) $ 1,856 $ 27,580 Adjustments to reconcile net (loss) income to net cash provided by Stock-based compensation expense 6,430 5,874 4,488 Net realized investment losses (gains) 1,154 ( 3,344 ) ( 330 ) Net unrealized investment losses (gains) 1,609 ( 92 ) ( 229 ) Net (accretion of discount) amortization of premiums on investments ( 110 ) 3 ( 42 ) Depreciation and amortization 1,403 1,490 4,686 Net (income) loss from limited partnership investments ( 3,345 ) ( 2,608 ) 1,781 Distributions from limited partnership interests 2,123 1,477 844 Credit losses on investments — — 20 Debt conversion expense — 1,754 — Loss on repurchases of convertible senior notes — — 150 Equity in loss (income) of subsidiaries 47,331 ( 9,274 ) ( 41,440 ) Deferred income taxes ( 895 ) 232 ( 935 ) Changes in operating assets and liabilities: Income taxes 11,708 5,067 ( 9,791 ) Other assets ( 2,805 ) 2,679 ( 629 ) Accrued expenses and other liabilities 4,078 ( 5,620 ) 1,096 Due to related parties 38,696 5,360 17,438 Net cash provided by operating activities 48,866 4,854 4,687 Cash flows from investing activities: Investments in limited partnership interests ( 1,261 ) ( 2,616 ) ( 3,376 ) Investment in note receivable – related party ( 15,000 ) ( 40,000 ) ( 22,000 ) Purchase of fixed-maturity securities ( 52,576 ) ( 1,685 ) ( 7 ) Purchase of equity securities ( 11,406 ) ( 76,786 ) ( 35,855 ) Purchase of short-term and other investments ( 42 ) ( 1,307 ) ( 200 ) Purchase of intangible assets ( 3,800 ) — — Purchase of property and equipment ( 581 ) ( 365 ) ( 742 ) Proceeds from sales of fixed-maturity securities 86 134 447 Proceeds from calls, repayments and maturities of fixed-maturity 54,178 145 27 Proceeds from sales of equity securities 10,975 78,555 30,688 Proceeds from sales, redemptions and maturities of short-term and other 570 3,618 537 Collection of note receivable – related party — 23,280 — Distributions received from limited partnership interests 4,759 2,567 1,614 Dividends received from subsidiary 51,500 41,900 52,500 Return of capital from subsidiary — — 9 Investment in subsidiaries ( 41,868 ) ( 10,000 ) ( 22,629 ) Net cash (used in) provided by investing activities ( 4,466 ) 17,440 1,013 (continued) Statements of Cash Flows – (Continued) Years Ended December 31, 2022 2021 2020 Cash flows from financing activities: Repurchases of common stock ( 71,242 ) ( 1,314 ) ( 1,547 ) Repurchases of common stock under share repurchase plan ( 17,070 ) — ( 5,161 ) Repurchases of convertible senior notes — — ( 4,459 ) Debt issuance costs ( 6,041 ) ( 152 ) — Cash dividends paid ( 15,233 ) ( 14,065 ) ( 12,694 ) Cash dividends received under share repurchase forward contract 76 306 306 Net (repayment) borrowing under revolving credit facility ( 15,000 ) ( 8,750 ) 14,000 Proceeds from exercise of common stock options — — 63 Debt conversion expense paid — ( 1,895 ) — Proceeds from issuance of long-term debt 172,500 — — Repayment of long-term debt ( 1 ) ( 2 ) ( 2 ) Net cash provided by (used in) financing activities 47,989 ( 25,872 ) ( 9,494 ) Net increase (decrease) in cash and cash equivalents 92,389 ( 3,578 ) ( 3,794 ) Cash and cash equivalents at beginning of year 10,366 13,944 17,738 Cash and cash equivalents at end of year $ 102,755 $ 10,366 $ 13,944 |
Nature of Operations - Addition
Nature of Operations - Additional Information (Detail) - USD ($) $ in Thousands | 1 Months Ended | 5 Months Ended | 11 Months Ended | 12 Months Ended | ||||||
Jun. 01, 2021 | Dec. 31, 2022 | May 31, 2022 | Nov. 30, 2022 | May 31, 2023 | Dec. 31, 2022 | May 31, 2022 | Dec. 31, 2021 | Jun. 01, 2022 | Dec. 31, 2020 | |
Nature Of Operations [Line Items] | ||||||||||
Commission percentage on aggregate replacement premium | 6% | |||||||||
Issuance of common stock, shares | 100,000 | |||||||||
United Insurance Holdings Corporation [Member] | ||||||||||
Nature Of Operations [Line Items] | ||||||||||
Quota share reinsurance percentage | 69.50% | |||||||||
Maximum [Member] | Initial or Reopened Claims [Member] | ||||||||||
Nature Of Operations [Line Items] | ||||||||||
Time limit for filing claim | 1 year | 2 years | ||||||||
Maximum [Member] | Supplemental Claims [Member] | ||||||||||
Nature Of Operations [Line Items] | ||||||||||
Time limit for filing claim | 18 months | 3 years | ||||||||
Renewal Rights Agreement [Member] | United Insurance Holdings Corporation [Member] | ||||||||||
Nature Of Operations [Line Items] | ||||||||||
Commission percentage on aggregate replacement premium | 6% | 6% | ||||||||
Issuance of common stock, shares | 100,000 | |||||||||
Renewal Rights Agreement [Member] | Maximum [Member] | United Insurance Holdings Corporation [Member] | ||||||||||
Nature Of Operations [Line Items] | ||||||||||
Aggregate ceding commission | $ 6,000 | $ 3,100 | ||||||||
Total commission | $ 6,000 | 3,100 | ||||||||
Renewal Rights Agreement [Member] | Minimum [Member] | United Insurance Holdings Corporation [Member] | ||||||||||
Nature Of Operations [Line Items] | ||||||||||
Aggregate replacement premium | $ 80,000 | |||||||||
Hundred Percent Quota Share Reinsurance [Member] | United Insurance Holdings Corporation [Member] | ||||||||||
Nature Of Operations [Line Items] | ||||||||||
Quota share reinsurance percentage | 100% | |||||||||
Percentage of quota share reinsurance each insurance subsidiary assumes | 50% | |||||||||
Deferred policy acquisition costs, percentage of provisional ceding commission of premium | 24% | |||||||||
Hundred Percent Quota Share Reinsurance [Member] | TypTap Group [Member] | United Insurance Holdings Corporation [Member] | ||||||||||
Nature Of Operations [Line Items] | ||||||||||
Quota share reinsurance percentage | 100% | |||||||||
Deferred policy acquisition costs, percentage of provisional ceding commission of premium | 16% | |||||||||
Eighty Five Percent Quota Share Reinsurance [Member] | HCPCI [Member] | United Insurance Holdings Corporation [Member] | ||||||||||
Nature Of Operations [Line Items] | ||||||||||
Quota share reinsurance percentage | 85% | |||||||||
Cost allowance percentage | 9% | |||||||||
Deferred policy acquisition costs, percentage of provisional ceding commission of premium | 25% |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Additional Information (Detail) $ in Thousands | 11 Months Ended | 12 Months Ended | ||
Nov. 30, 2022 | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Summary Of Significant Accounting Policies [Line Items] | ||||
Minimum ownership interest percentage for limited partnership accounted investments for using the equity method | 5% | |||
Unpaid earned premium and credit loss | $ 0 | |||
Allowance for uncollectible premiums | 5,362 | $ 1,750 | ||
Increase (decrease) in unearned premiums from change in allowance for uncollectible premium | (3,432) | 318 | ||
Other income | 4,488 | 6,447 | $ 1,854 | |
Other assets | $ 31,671 | 14,717 | ||
Period for establishing allowance on insurance premiums receivable | 90 days | |||
Claims Processing Services [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Other income | $ 3,425 | 4,554 | ||
Other assets | $ 2,543 | $ 314 | ||
Land Improvements [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Useful lives of Property and Equipment | 5 years | |||
Building [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Useful lives of Property and Equipment | 39 years | |||
Computer Hardware and Software [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Useful lives of Property and Equipment | 3 years | |||
Capitalized Software Cost [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Useful lives of Property and Equipment | 7 years | |||
Investment in Joint Venture [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Percentage of investment in unconsolidated entities | 90% | |||
Maximum [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Maximum ownership interest percentage for limited partnership accounted investments for using the net asset value method. | 0.05 | |||
Operating lease term | 9 years | |||
Percentage of voting rights and economic interests in subsidiary threshold | 100% | |||
Maximum [Member] | Building Improvements [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Useful lives of Property and Equipment | 10 years | |||
Maximum [Member] | Furniture and Office Equipment [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Useful lives of Property and Equipment | 7 years | |||
Minimum [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Operating lease term | 1 month | |||
Minimum [Member] | Building Improvements [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Useful lives of Property and Equipment | 3 years | |||
Minimum [Member] | Furniture and Office Equipment [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Useful lives of Property and Equipment | 3 years |
Cash, Cash Equivalents, and R_3
Cash, Cash Equivalents, and Restricted Cash - Summary of Cash, Cash Equivalents, and Restricted Cash (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents [Abstract] | ||
Cash and cash equivalents | $ 234,863 | $ 628,943 |
Restricted cash | 2,900 | 2,400 |
Total | $ 237,763 | $ 631,343 |
Cash, Cash Equivalents, and R_4
Cash, Cash Equivalents, and Restricted Cash - Additional Information (Detail) $ in Thousands | Dec. 31, 2022 USD ($) Account Bank | Dec. 31, 2021 USD ($) Bank Account |
Cash And Cash Equivalents [Line Items] | ||
Cash and cash equivalents | $ 234,863 | $ 628,943 |
Percentage of cash and cash equivalents deposited at national banks | 74.70% | 83.80% |
Number of national banks in which deposits are held | Bank | 4 | 6 |
Number of custodians in which deposits are held | Account | 2 | 2 |
Federal Deposit Insurance Corporation's coverage limit for insured deposit accounts | $ 250 | $ 250 |
Custodial Accounts [Member] | ||
Cash And Cash Equivalents [Line Items] | ||
Cash and cash equivalents | 15,796 | 181,390 |
Bank Deposits [Member] | ||
Cash And Cash Equivalents [Line Items] | ||
Cash and cash equivalents | $ 175,331 | $ 527,294 |
Investments - Summary of Amorti
Investments - Summary of Amortized Cost, Gross Unrealized Gains and Losses, and Estimated Fair Value of Available-for-Sale Securities (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Schedule of Available-for-sale Securities [Line Items] | |||
Fixed-maturity securities, Cost or Amortized Cost | $ 494,197 | $ 41,953 | |
Allowance for Credit Loss | 0 | 0 | $ (588) |
Fixed-maturity securities, Gross Unrealized Gain | 81 | 789 | |
Fixed-maturity securities, Gross Unrealized Loss | (10,377) | (159) | |
Fixed-maturity securities, Estimated Fair Value | 483,901 | 42,583 | |
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 | 463,648 | 17,046 | |
Fixed-maturity securities, Gross Unrealized Gain | 59 | 64 | |
Fixed-maturity securities, Gross Unrealized Loss | (9,105) | (86) | |
Fixed-maturity securities, Estimated Fair Value | 454,602 | 17,024 | |
Fixed-Maturity Securities [Member] | Corporate Bonds [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Fixed-maturity securities, Cost or Amortized Cost | 28,378 | 21,913 | |
Fixed-maturity securities, Gross Unrealized Gain | 20 | 632 | |
Fixed-maturity securities, Gross Unrealized Loss | (1,205) | (53) | |
Fixed-maturity securities, Estimated Fair Value | 27,193 | 22,492 | |
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 | 1,389 | 1,759 | |
Fixed-maturity securities, Gross Unrealized Gain | 49 | ||
Fixed-maturity securities, Gross Unrealized Loss | (6) | ||
Fixed-maturity securities, Estimated Fair Value | 1,383 | 1,808 | |
Fixed-Maturity Securities [Member] | Exchange-Traded Debt [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Fixed-maturity securities, Cost or Amortized Cost | 683 | 767 | |
Fixed-maturity securities, Gross Unrealized Gain | 2 | 44 | |
Fixed-maturity securities, Gross Unrealized Loss | (52) | ||
Fixed-maturity securities, Estimated Fair Value | 633 | 811 | |
Fixed-Maturity Securities [Member] | Redeemable Preferred Stock [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Fixed-maturity securities, Cost or Amortized Cost | 99 | 468 | |
Fixed-maturity securities, Gross Unrealized Loss | (9) | (20) | |
Fixed-maturity securities, Estimated Fair Value | $ 90 | $ 448 |
Investments - Scheduled Contrac
Investments - Scheduled Contractual Maturities of Fixed-Maturity Securities (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Investments, Debt and Equity Securities [Abstract] | ||
Due in one year or less, Cost or Amortized Cost | $ 266,170 | $ 10,734 |
Due after one year through five years, Cost or Amortized Cost | 223,153 | 19,222 |
Due after five years through ten years, Cost or Amortized Cost | 4,380 | 11,503 |
Due after ten years, Cost or Amortized Cost | 494 | 494 |
Fixed-maturity securities, Cost or Amortized Cost | 494,197 | 41,953 |
Due in one year or less, Estimated Fair Value | 265,353 | 10,826 |
Due after one year through five years, Estimated Fair Value | 214,307 | 19,820 |
Due after five years through ten years, Estimated Fair Value | 3,797 | 11,403 |
Due after ten years, Estimated Fair Value | 444 | 534 |
Estimated Fair Value Total | $ 483,901 | $ 42,583 |
Investments - Summary of Sales
Investments - Summary of Sales of Available-for-sale Fixed-Maturity Securities (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule of Available-for-sale Securities [Line Items] | |||
Proceeds | $ 11,716 | $ 23,055 | $ 81,433 |
Fixed-Maturity Securities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Proceeds | 11,716 | 23,055 | 81,433 |
Gross Realized Gains | 13 | 722 | 1,773 |
Gross Realized Losses | $ (442) | $ (35) | $ (610) |
Investments - Summary of Securi
Investments - Summary of Securities with Gross Unrealized Loss Positions Aggregated by Investment Category (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Schedule of Available-for-sale Securities [Line Items] | ||
Gross Unrealized Loss, Less than Twelve Months | $ (9,677) | $ (146) |
Estimated Fair Value, Less than Twelve Months | 294,080 | 14,703 |
Gross Unrealized Loss, Twelve Months or Longer | (700) | (13) |
Estimated Fair Value, Twelve Months or Longer | 7,185 | 616 |
Gross Unrealized Loss, Total | (10,377) | (159) |
Estimated Fair Value, Total | 301,265 | 15,319 |
Fixed-Maturity Securities [Member] | U.S. Treasury and U.S. Government Agencies [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Gross Unrealized Loss, Less than Twelve Months | (8,701) | (73) |
Estimated Fair Value, Less than Twelve Months | 269,116 | 9,809 |
Gross Unrealized Loss, Twelve Months or Longer | (404) | (13) |
Estimated Fair Value, Twelve Months or Longer | 4,644 | 616 |
Gross Unrealized Loss, Total | (9,105) | (86) |
Estimated Fair Value, Total | 273,760 | 10,425 |
Fixed-Maturity Securities [Member] | Corporate Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Gross Unrealized Loss, Less than Twelve Months | (909) | (53) |
Estimated Fair Value, Less than Twelve Months | 23,028 | 4,452 |
Gross Unrealized Loss, Twelve Months or Longer | (296) | 0 |
Estimated Fair Value, Twelve Months or Longer | 2,541 | 0 |
Gross Unrealized Loss, Total | (1,205) | (53) |
Estimated Fair Value, Total | 25,569 | 4,452 |
Fixed-Maturity Securities [Member] | State, Municipalities, and Political Subdivisions [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Gross Unrealized Loss, Less than Twelve Months | (6) | |
Estimated Fair Value, Less than Twelve Months | 1,383 | |
Gross Unrealized Loss, Twelve Months or Longer | 0 | |
Estimated Fair Value, Twelve Months or Longer | 0 | |
Gross Unrealized Loss, Total | (6) | |
Estimated Fair Value, Total | 1,383 | |
Fixed-Maturity Securities [Member] | Exchange-Traded Debt [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Gross Unrealized Loss, Less than Twelve Months | (52) | |
Estimated Fair Value, Less than Twelve Months | 463 | |
Gross Unrealized Loss, Twelve Months or Longer | 0 | |
Estimated Fair Value, Twelve Months or Longer | 0 | |
Gross Unrealized Loss, Total | (52) | |
Estimated Fair Value, Total | 463 | |
Fixed-Maturity Securities [Member] | Redeemable Preferred Stock [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Gross Unrealized Loss, Less than Twelve Months | (9) | (20) |
Estimated Fair Value, Less than Twelve Months | 90 | 442 |
Gross Unrealized Loss, Twelve Months or Longer | 0 | 0 |
Estimated Fair Value, Twelve Months or Longer | 0 | 0 |
Gross Unrealized Loss, Total | (9) | (20) |
Estimated Fair Value, Total | $ 90 | $ 442 |
Investments (Securities with Gr
Investments (Securities with Gross Unrealized Loss Positions) - Additional Information (Detail) - Security | Dec. 31, 2022 | Dec. 31, 2021 |
Investments, Debt and Equity Securities [Abstract] | ||
Number of securities in an unrealized loss position | 84 | 23 |
Investments - Summary of Allowa
Investments - Summary of Allowance for Credit Losses of Available-for-Sale Securities (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | ||
Beginning Balance | $ 0 | $ 588 |
Reductions for securities sold | 0 | (9) |
Reductions for securities exchanged | 0 | (579) |
Ending Balance | $ 0 | $ 0 |
Investments (Allowance for Cred
Investments (Allowance for Credit Losses of Available-for-Sale Fixed-Maturity Securities) - Additional Information (Detail) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) Security | |
Schedule Of Investments [Line Items] | |||
Credit loss expense - investments | $ | $ 0 | $ 0 | $ 611 |
Credit loss expense, number of securities | Security | 2 |
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 | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | ||
Cost | $ 36,272 | $ 46,276 |
Gross Unrealized Gain | 2,078 | 6,335 |
Gross Unrealized Loss | (3,767) | (871) |
Equity securities | $ 34,583 | $ 51,740 |
Investments - Summary of Unreal
Investments - Summary of Unrealized Gains and Losses in Consolidated Statements of Income (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Gain (Loss) on Securities [Line Items] | |||
Net unrealized investment (losses) gains | $ (7,153) | $ 1,363 | $ 679 |
Equity Securities [Member] | |||
Gain (Loss) on Securities [Line Items] | |||
Net (losses) gains recognized | (8,149) | 5,486 | 435 |
Exclude: Net realized (losses) gains recognized for securities sold | $ (996) | $ 4,123 | $ (244) |
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 | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Debt and Equity Securities, FV-NI [Line Items] | |||
Proceeds | $ 31,605 | $ 112,310 | $ 47,312 |
Equity Securities [Member] | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Proceeds | 31,605 | 112,310 | 47,312 |
Gross Realized Gains | 2,224 | 6,280 | 2,868 |
Gross Realized Losses | $ (3,220) | $ (2,157) | $ (3,112) |
Investments - Schedule of Compa
Investments - Schedule of Company's Investments in Limited Partnerships (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | ||
Investment Securities [Line Items] | |||
Carrying Value | $ 25,702 | $ 28,133 | |
Unfunded Balance | 5,661 | 11,073 | |
Private US Lower Middle Market Companies [Member] | |||
Investment Securities [Line Items] | |||
Carrying Value | [1],[2],[3] | 4,146 | 6,076 |
Unfunded Balance | [1],[2],[3] | $ 0 | $ 2,085 |
Percentage investment held by the entity | [1],[2],[3],[4] | 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 | [1],[2],[5] | $ 2,528 | $ 3,423 |
Unfunded Balance | [1],[2],[5] | $ 0 | $ 0 |
Percentage investment held by the entity | [1],[2],[4],[5] | 1.66% | 1.69% |
Power Utility and Energy Industries and Infrastructure [Member] | |||
Investment Securities [Line Items] | |||
Carrying Value | [2],[6],[7] | $ 5,319 | $ 6,270 |
Unfunded Balance | [2],[6],[7] | $ 0 | $ 1,401 |
Percentage investment held by the entity | [2],[4],[6],[7] | 0.18% | 0.18% |
Senior and Junior Debts of Private Equity-Backed Companies [Member] | |||
Investment Securities [Line Items] | |||
Carrying Value | [2],[8],[9] | $ 3,470 | $ 4,437 |
Unfunded Balance | [2],[8],[9] | $ 0 | $ 0 |
Percentage investment held by the entity | [2],[4],[8],[9] | 0.56% | 0.57% |
Mature Real Estate Private Equity Funds And Portfolio Globally [Member] | |||
Investment Securities [Line Items] | |||
Carrying Value | [2],[10] | $ 7,457 | $ 5,977 |
Unfunded Balance | [2],[10] | $ 3,125 | $ 4,537 |
Percentage investment held by the entity | [2],[4],[10] | 1.32% | 1.36% |
Credit And Equity Investments Primarily In Private Equity Owned Companies [Member] | |||
Investment Securities [Line Items] | |||
Carrying Value | [2],[11] | $ 2,782 | $ 1,950 |
Unfunded Balance | [2],[11] | $ 2,536 | $ 3,050 |
Percentage investment held by the entity | [2],[4],[11] | 0.98% | 0.47% |
[1] At the fund manager’s discretion, the term of the fund may be extended for up to two additional one-year periods. 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. The term is expected to be the later of ten years or two years following the maturity of the fund’s outstanding leverage. Although the capital commitment period has expired, follow-on investments and pending commitments may require additional fundings. Represents the Company’s percentage investment in the fund at each balance sheet date. The term has been extended for a second additional one-year period to June 30, 2023 . Although the capital commitment period has ended, the general partner could still request an additional funding under certain circumstances. 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. With the consent of a supermajority of partners, the term of the fund may be extended for up to three additional one-year periods. Expected to have an eight-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. The capital commitment period has ended but an additional funding may be requested. The term is expected to end November 27, 2027 . The term may be extended for up to four additional one-year periods at the general partner’s discretion, and up to two additional one-year periods with the consent of the advisory committee. Expected to have an eight-year term after the final admission date. The term may be extended for an additional one-year period at the general partner’s discretion, and up to two additional one-year periods with the consent of either the advisory committee or a majority of limited partners. |
Investments - Schedule of Com_2
Investments - Schedule of Company's Investments in Limited Partnerships (Parenthetical) (Detail) | 12 Months Ended |
Dec. 31, 2022 | |
Private US Lower Middle Market Companies [Member] | |
Schedule Of Investments [Line Items] | |
Expected term | 10 years |
Expected term | 2 years |
Bank Loans Public and Private Corporate Bonds Asset Backed Securities Equity and Debt Restructuring [Member] | |
Schedule Of Investments [Line Items] | |
Maturity date | Jun. 30, 2023 |
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 | 8 years |
Investment additional maturity term | 2 years |
Mature Real Estate Private Equity Funds And Portfolio Globally [Member] | |
Schedule Of Investments [Line Items] | |
Maturity date | Nov. 27, 2027 |
Investment additional maturity term | 4 years |
Investment additional maturity term | 2 years |
Credit And Equity Investments Primarily In Private Equity Owned Companies [Member] | |
Schedule Of Investments [Line Items] | |
Expected term | 8 years |
Investment additional maturity term | 1 year |
Investment Additional Maturity Term With Consent Of Advisory Committee Or Majority | 2 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 | 12 Months Ended | |||||||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule Of Equity Method Investments [Line Items] | |||||||||||||||
Total income | $ 119,943 | $ 126,654 | $ 125,926 | $ 127,040 | $ 112,320 | $ 99,217 | $ 101,504 | $ 94,874 | $ 70,313 | $ 104,027 | $ 80,717 | $ 55,380 | $ 499,563 | $ 407,915 | $ 310,437 |
Net income (loss) | 2,651 | $ (51,503) | $ (8,542) | $ 2,791 | 1,435 | $ (4,868) | $ 3,830 | $ 6,845 | $ 2,707 | $ 15,390 | $ 8,936 | $ 547 | (54,603) | 7,242 | 27,580 |
Balance sheet: | |||||||||||||||
Total assets | 1,803,328 | 1,176,857 | 1,803,328 | 1,176,857 | |||||||||||
Total liabilities | 1,548,521 | 762,399 | 1,548,521 | 762,399 | |||||||||||
Limited Partnership [Member] | |||||||||||||||
Schedule Of Equity Method Investments [Line Items] | |||||||||||||||
Total income | 1,252,264 | 705,610 | (1,432,907) | ||||||||||||
Total expenses | (139,174) | (131,463) | (133,281) | ||||||||||||
Net income (loss) | 1,113,090 | 574,147 | $ (1,566,188) | ||||||||||||
Balance sheet: | |||||||||||||||
Total assets | 5,119,695 | 5,855,616 | 5,119,695 | 5,855,616 | |||||||||||
Total liabilities | $ 430,354 | $ 564,732 | $ 430,354 | $ 564,732 |
Investments (Limited Partnershi
Investments (Limited Partnership Investments) - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule Of Investments [Line Items] | |||
Recognized investment income (loss) | $ 3,963 | $ 4,947 | $ (1,595) |
Distributions From Limited Partnership For Return On Investment | 3,001 | 3,604 | 1,215 |
Distributions received from limited partnership interests | 3,001 | 3,604 | 1,215 |
Limited Partnership [Member] | |||
Schedule Of Investments [Line Items] | |||
Recognized investment income (loss) | 3,963 | 4,947 | (1,595) |
Company's net cumulative contributed capital to the partnership | 24,978 | 28,371 | |
Maximum exposure loss relating to VIE | 25,702 | 28,133 | |
Cash distributions | 3,301 | ||
Distributions From Limited Partnership For Return On Investment | 3,001 | 3,604 | 1,215 |
Distributions received from limited partnership interests | 3,001 | 3,604 | 1,215 |
Return of capital | $ 5,360 | $ 4,657 | $ 2,086 |
Investments (Investment in Unco
Investments (Investment in Unconsolidated Joint Venture) - Additional Information (Detail) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Jun. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule Of Investments [Line Items] | ||||
Distributions received from unconsolidated joint venture | $ 489 | $ 114 | $ 0 | |
Distribution received from unconsolidated joint venture | 489 | 114 | 0 | |
Received distribution | 351 | 623 | 0 | |
FMKT Mel JV, LLC [Member] | ||||
Schedule Of Investments [Line Items] | ||||
Maximum exposure loss relating to VIE | 18 | 363 | ||
Undistributed gain (loss) after equity distribution | 0 | 0 | 0 | |
Cash distribution | 840 | 737 | $ 0 | |
Distributions received from unconsolidated joint venture | 489 | 114 | ||
Distribution received from unconsolidated joint venture | 489 | 114 | ||
Received distribution | $ 351 | $ 623 | ||
Gain On Sale Of Investments | $ 572 |
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 | 12 Months Ended | ||||||||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Operating results: | ||||||||||||||||
Total revenues | $ 119,943 | $ 126,654 | $ 125,926 | $ 127,040 | $ 112,320 | $ 99,217 | $ 101,504 | $ 94,874 | $ 70,313 | $ 104,027 | $ 80,717 | $ 55,380 | $ 499,563 | $ 407,915 | $ 310,437 | |
Net income (loss) | 2,651 | $ (51,503) | $ (8,542) | $ 2,791 | 1,435 | $ (4,868) | $ 3,830 | $ 6,845 | $ 2,707 | $ 15,390 | $ 8,936 | $ 547 | (54,603) | 7,242 | 27,580 | |
The Company's share of net income (loss)* | 495 | 417 | (57) | |||||||||||||
Balance sheet: | ||||||||||||||||
Other | 31,671 | 14,717 | 31,671 | 14,717 | ||||||||||||
Total assets | 1,803,328 | 1,176,857 | 1,803,328 | 1,176,857 | ||||||||||||
Other liabilities | 23,361 | 31,485 | 23,361 | 31,485 | ||||||||||||
Total liabilities, redeemable noncontrolling interest and equity | 1,803,328 | 1,176,857 | 1,803,328 | 1,176,857 | ||||||||||||
Investment in unconsolidated joint venture, at equity | [1] | 18 | 363 | 18 | 363 | |||||||||||
Unconsolidated Joint Venture [Member] | ||||||||||||||||
Balance sheet: | ||||||||||||||||
Property and equipment, net | 0 | 357 | 0 | 357 | ||||||||||||
Cash | 0 | 29 | 0 | 29 | ||||||||||||
Other | 0 | 18 | 0 | 18 | ||||||||||||
Total assets | 0 | 404 | 0 | 404 | ||||||||||||
Members’ capital | 0 | 404 | 0 | 404 | ||||||||||||
Total members' capital | $ 0 | $ 404 | 0 | 404 | ||||||||||||
FMKT Mel JV, LLC [Member] | Investment Income (Expense) [Member] | ||||||||||||||||
Operating results: | ||||||||||||||||
The Company's share of net income (loss)* | 495 | 417 | (57) | |||||||||||||
FMKT Mel JV, LLC [Member] | Unconsolidated Joint Venture [Member] | ||||||||||||||||
Operating results: | ||||||||||||||||
Total revenues | 572 | 540 | 0 | |||||||||||||
Total expenses | (22) | (77) | (64) | |||||||||||||
Net income (loss) | $ 550 | $ 463 | $ (64) | |||||||||||||
[1] Includes the 90 % share of FMKT Mel JV’s operating results. |
Investments - Summary of Unau_3
Investments - Summary of Unaudited Financial Information and Unaudited Financial Position of Joint Venture (Parenthetical) (Detail) | 11 Months Ended |
Nov. 30, 2022 | |
Unconsolidated Joint Venture [Member] | |
Variable Interest Entity [Line Items] | |
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 90% |
Investments (Assets Held for Sa
Investments (Assets Held for Sale) - Additional Information (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Schedule Of Investments [Line Items] | ||
Real estate investments | $ 71,388 | $ 73,896 |
Investments - Summary of Real E
Investments - Summary of Real Estate Investment (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Real Estate [Abstract] | ||
Land | $ 38,327 | $ 39,720 |
Land improvements | 12,138 | 11,917 |
Buildings and building improvements | 29,410 | 29,405 |
Tenant and leasehold improvements | 1,742 | 1,511 |
Other | 1,649 | 1,265 |
Total, at cost | 83,266 | 83,818 |
Less: accumulated depreciation and amortization | (11,878) | (9,922) |
Real estate investments | $ 71,388 | $ 73,896 |
Investments (Real Estate Invest
Investments (Real Estate Investments) - Additional Information (Detail) $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Jul. 01, 2022 USD ($) a | May 31, 2022 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Schedule Of Investments [Line Items] | |||||
Proceeds from sales of real estate investments | $ 667 | $ 0 | $ 0 | ||
Real Estate Investments [Member] | |||||
Schedule Of Investments [Line Items] | |||||
Depreciation and amortization expenses under real estate investments | $ 1,956 | $ 1,922 | $ 1,864 | ||
Proceeds from sales of real estate investments | $ 667 | ||||
Gain on sale of liquor license | $ 451 | ||||
Proceeds from sale of land | $ 14,500 | ||||
Area of Land Sell | a | 1.5 |
Investments - Investment Income
Investments - Investment Income (Loss) Summarized (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule Of Investments [Line Items] | |||
Recognized investment income (loss) | $ 3,963 | $ 4,947 | $ (1,595) |
Real estate investments | 16,126 | 4,086 | (620) |
Net investment income | 32,447 | 12,335 | 4,564 |
Gain (Loss) Related to Litigation Settlement | 2,790 | ||
Available-for-Sale-Fixed-Maturity Securities [Member] | |||
Schedule Of Investments [Line Items] | |||
Investment income | 6,367 | 1,375 | 4,252 |
Equity Securities [Member] | |||
Schedule Of Investments [Line Items] | |||
Investment income | 1,204 | 1,411 | 1,388 |
Limited Partnership Investment [Member] | |||
Schedule Of Investments [Line Items] | |||
Recognized investment income (loss) | 3,963 | 4,947 | (1,595) |
Cash and Cash Equivalents [Member] | |||
Schedule Of Investments [Line Items] | |||
Investment income | 4,783 | 641 | 1,691 |
Short-term Investments [Member] | |||
Schedule Of Investments [Line Items] | |||
Investment income | 0 | 0 | 2 |
Investment Expense [Member] | |||
Schedule Of Investments [Line Items] | |||
Investment expense | (491) | (542) | (497) |
Income (Loss) from Unconsolidated Joint Venture [Member] | |||
Schedule Of Investments [Line Items] | |||
Investment income | $ 495 | $ 417 | $ (57) |
Investment Income (Loss) (Addit
Investment Income (Loss) (Additional Information) (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Jul. 01, 2022 USD ($) a | May 31, 2022 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Schedule of Investments [Line Items] | |||||
Gain Loss On Involuntary Conversions | $ 0 | $ 0 | $ 36,969 | ||
Proceeds from sales of real estate investments | 667 | 0 | 0 | ||
Proceeds from sales of real estate investments | $ 376 | 0 | $ 0 | ||
Gain On legal settlement | $ 2,790 | ||||
Real Estate Investment [Member] | |||||
Schedule of Investments [Line Items] | |||||
Proceeds from sales of real estate investments | $ 667 | ||||
Proceeds from sales of real estate investments | 376 | ||||
Gain on sale of liquor license | $ 451 | ||||
Area of Land Sell | a | 1.5 | ||||
Proceeds from sale of land | $ 14,500 | ||||
Real Estate Investment [Member] | FDOT [Member] | |||||
Schedule of Investments [Line Items] | |||||
Gain Loss On Involuntary Conversions | $ 13,402 | ||||
Area of Land Sell | a | 1.5 | ||||
Proceeds from sale of land | $ 14,500 |
Investments (Other Investments)
Investments (Other Investments)- Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Other Investments [Member] | |||
Schedule of Investments [Line Items] | |||
Realized Investment Gains Losses | $ 238 | $ 1,662 | $ 81 |
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 | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Before Tax | |||
Net unrealized (losses) gains arising during the period | $ (11,355) | $ (692) | $ 86 |
Credit losses charged to income | 0 | 0 | 611 |
Call and repayment gains charged to investment income | 0 | (36) | (374) |
Reclassification adjustment for net realized losses (gains) | 429 | (687) | (1,163) |
Total other comprehensive loss | (10,926) | (1,415) | (840) |
Income Tax Effect | |||
Net unrealized (losses) gains | (263) | (170) | 21 |
Credit losses on investments | 150 | ||
Call and repayment gains charged to investment income | (9) | (92) | |
Reclassification adjustment for net realized losses (gains) | 109 | (168) | (285) |
Total other comprehensive loss | (154) | (347) | (206) |
Net of Tax | |||
Net unrealized (losses) gains | (11,092) | (522) | 65 |
Credit losses on investments | 461 | ||
Call and repayment gains charged to investment income | (27) | (282) | |
Reclassification adjustment for net realized losses (gains) | 320 | (519) | (878) |
Total other comprehensive loss, net of income taxes | $ (10,772) | $ (1,068) | $ (634) |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
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) | 12 Months Ended |
Dec. 31, 2022 | |
4.75% Convertible Senior Notes [Member] | |
Debt Instrument [Line Items] | |
Debt instrument, maturity date | 2042 |
Valuation Methodology | Quoted price |
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) | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | |||
Debt instrument stated interest rate | 4.25% | 4.25% | 4.25% |
4.75% Convertible Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument stated interest rate | 4.75% | ||
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 | Dec. 31, 2022 | Dec. 31, 2021 |
Financial Assets: | ||
Restricted cash | $ 2,900 | $ 2,400 |
Debt Securities, Available-for-Sale | 483,901 | 42,583 |
Equity securities | 34,583 | 51,740 |
Fair Value, Measurements, Recurring [Member] | ||
Financial Assets: | ||
Cash and cash equivalents | 234,863 | 628,943 |
Restricted cash | 2,900 | 2,400 |
Debt Securities, Available-for-Sale | 483,901 | 42,583 |
Equity securities | 34,583 | 51,740 |
Fair Value, Measurements, Recurring [Member] | (Level 1) [Member] | ||
Financial Assets: | ||
Cash and cash equivalents | 234,863 | 628,943 |
Restricted cash | 2,900 | 2,400 |
Debt Securities, Available-for-Sale | 474,149 | 39,287 |
Equity securities | 34,583 | 51,740 |
Fair Value, Measurements, Recurring [Member] | (Level 2) [Member] | ||
Financial Assets: | ||
Debt Securities, Available-for-Sale | 9,752 | 3,296 |
U.S. Treasury and U.S. Government Agencies [Member] | Fair Value, Measurements, Recurring [Member] | ||
Financial Assets: | ||
Debt Securities, Available-for-Sale | 454,602 | 17,024 |
U.S. Treasury and U.S. Government Agencies [Member] | Fair Value, Measurements, Recurring [Member] | (Level 1) [Member] | ||
Financial Assets: | ||
Debt Securities, Available-for-Sale | 446,233 | 15,536 |
U.S. Treasury and U.S. Government Agencies [Member] | Fair Value, Measurements, Recurring [Member] | (Level 2) [Member] | ||
Financial Assets: | ||
Debt Securities, Available-for-Sale | 8,369 | 1,488 |
Corporate Bonds [Member] | Fair Value, Measurements, Recurring [Member] | ||
Financial Assets: | ||
Debt Securities, Available-for-Sale | 27,193 | 22,492 |
Corporate Bonds [Member] | Fair Value, Measurements, Recurring [Member] | (Level 1) [Member] | ||
Financial Assets: | ||
Debt Securities, Available-for-Sale | 27,193 | 22,492 |
State, Municipalities, and Political Subdivisions [Member] | Fair Value, Measurements, Recurring [Member] | ||
Financial Assets: | ||
Debt Securities, Available-for-Sale | 1,383 | 1,808 |
State, Municipalities, and Political Subdivisions [Member] | Fair Value, Measurements, Recurring [Member] | (Level 2) [Member] | ||
Financial Assets: | ||
Debt Securities, Available-for-Sale | 1,383 | 1,808 |
Exchange-Traded Debt [Member] | Fair Value, Measurements, Recurring [Member] | ||
Financial Assets: | ||
Debt Securities, Available-for-Sale | 633 | 811 |
Exchange-Traded Debt [Member] | Fair Value, Measurements, Recurring [Member] | (Level 1) [Member] | ||
Financial Assets: | ||
Debt Securities, Available-for-Sale | 633 | 811 |
Redeemable Preferred Stock [Member] | Fair Value, Measurements, Recurring [Member] | ||
Financial Assets: | ||
Debt Securities, Available-for-Sale | 90 | 448 |
Redeemable Preferred Stock [Member] | Fair Value, Measurements, Recurring [Member] | (Level 1) [Member] | ||
Financial Assets: | ||
Debt Securities, Available-for-Sale | $ 90 | $ 448 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Fair Value Information for Financial Liabilities Carried on Balance Sheet (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Financial Liabilities: | ||
Revolving credit facility | $ 0 | $ 15,000 |
Long-term debt | 211,687 | 45,504 |
Carrying Value [Member] | ||
Financial Liabilities: | ||
Revolving credit facility | 15,000 | |
Long-term debt | 211,674 | 45,473 |
Estimate of Fair Value Measurement [Member] | ||
Financial Liabilities: | ||
Revolving credit facility | 15,000 | |
Long-term debt | 171,605 | 57,639 |
Estimate of Fair Value Measurement [Member] | (Level 2) [Member] | ||
Financial Liabilities: | ||
Revolving credit facility | 15,000 | |
Long-term debt | 152,640 | 33,248 |
Estimate of Fair Value Measurement [Member] | (Level 3) [Member] | ||
Financial Liabilities: | ||
Long-term debt | 18,965 | 24,391 |
4.75% Convertible Senior Notes [Member] | Carrying Value [Member] | ||
Financial Liabilities: | ||
Long-term debt | 167,126 | |
4.75% Convertible Senior Notes [Member] | Estimate of Fair Value Measurement [Member] | ||
Financial Liabilities: | ||
Long-term debt | 133,167 | |
4.75% Convertible Senior Notes [Member] | Estimate of Fair Value Measurement [Member] | (Level 2) [Member] | ||
Financial Liabilities: | ||
Long-term debt | 133,167 | |
4.25% Convertible Senior Notes [Member] | Carrying Value [Member] | ||
Financial Liabilities: | ||
Long-term debt | 23,916 | 23,885 |
4.25% Convertible Senior Notes [Member] | Estimate of Fair Value Measurement [Member] | ||
Financial Liabilities: | ||
Long-term debt | 19,473 | 33,248 |
4.25% Convertible Senior Notes [Member] | Estimate of Fair Value Measurement [Member] | (Level 2) [Member] | ||
Financial Liabilities: | ||
Long-term debt | 19,473 | 33,248 |
3.75% Callable Promissory Note [Member] | Carrying Value [Member] | ||
Financial Liabilities: | ||
Long-term debt | 6,789 | 7,153 |
3.75% Callable Promissory Note [Member] | Estimate of Fair Value Measurement [Member] | ||
Financial Liabilities: | ||
Long-term debt | 6,171 | 7,852 |
3.75% Callable Promissory Note [Member] | Estimate of Fair Value Measurement [Member] | (Level 3) [Member] | ||
Financial Liabilities: | ||
Long-term debt | 6,171 | 7,852 |
3.90% Promissory Note [Member] | Carrying Value [Member] | ||
Financial Liabilities: | ||
Long-term debt | 8,943 | 9,287 |
3.90% Promissory Note [Member] | Estimate of Fair Value Measurement [Member] | ||
Financial Liabilities: | ||
Long-term debt | 8,152 | 10,488 |
3.90% Promissory Note [Member] | Estimate of Fair Value Measurement [Member] | (Level 3) [Member] | ||
Financial Liabilities: | ||
Long-term debt | 8,152 | 10,488 |
4.55% Promissory Note [Member] | Carrying Value [Member] | ||
Financial Liabilities: | ||
Long-term debt | 4,900 | 5,148 |
4.55% Promissory Note [Member] | Estimate of Fair Value Measurement [Member] | ||
Financial Liabilities: | ||
Long-term debt | 4,642 | 6,051 |
4.55% Promissory Note [Member] | Estimate of Fair Value Measurement [Member] | (Level 3) [Member] | ||
Financial Liabilities: | ||
Long-term debt | $ 4,642 | $ 6,051 |
Fair Value Measurements - Sch_2
Fair Value Measurements - Schedule of Fair Value Information for Financial Liabilities Carried on Balance Sheet (Parenthetical) (Detail) | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt instrument stated interest rate | 4.25% | 4.25% | 4.25% |
4.75% Convertible Senior Notes [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt instrument stated interest rate | 4.75% | ||
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% | ||
3.75% Callable Promissory Note [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt instrument stated interest rate | 3.75% | ||
4.55% Promissory Note [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt instrument stated interest rate | 4.55% | ||
Carrying Value [Member] | 4.75% Convertible Senior Notes [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt instrument stated interest rate | 4.75% | ||
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 [Member] | |||
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% |
Deferred Policy Acquisition C_3
Deferred Policy Acquisition Costs - Summary of Activity with Respect to Deferred Policy Acquisition Costs (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||
Beginning balance | $ 57,695 | $ 43,858 | |
Policy acquisition costs deferred | 88,496 | 100,800 | |
Amortization | (100,669) | (86,963) | $ (49,125) |
Ending balance | $ 45,522 | $ 57,695 | $ 43,858 |
Deferred Policy Acquisition C_4
Deferred Policy Acquisition Costs - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Deferred Policy Acquisition Cost [Line Items] | |||
Amortization of deferred policy acquisition costs | $ 100,669 | $ 86,963 | $ 49,125 |
Policy acquisition costs deferred | 88,496 | 100,800 | |
United Insurance Holdings Corporation [Member] | |||
Deferred Policy Acquisition Cost [Line Items] | |||
Policy acquisition costs deferred | $ 1,349 | $ 34,491 | $ 15,557 |
Property and Equipment, Net - S
Property and Equipment, Net - Summary of Property and Equipment, Net (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Total, at cost | $ 31,008 | $ 24,751 |
Less: accumulated depreciation and amortization | (13,098) | (10,519) |
Property and equipment, net | 17,910 | 14,232 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total, at cost | 2,134 | 2,134 |
Land Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total, at cost | 79 | 0 |
Buildings And Building Improvements [member] | ||
Property, Plant and Equipment [Line Items] | ||
Total, at cost | 6,550 | 4,005 |
Computer Hardware and Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total, at cost | 16,741 | 13,295 |
Office Furniture and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total, at cost | 2,955 | 2,561 |
Tenant and Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total, at cost | 782 | 620 |
Other [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total, at cost | $ 1,767 | $ 2,136 |
Property and Equipment, Net - A
Property and Equipment, Net - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation and amortization | $ 4,779 | $ 2,184 | $ 1,853 |
Property, Plant and Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation and amortization | $ 2,580 | $ 1,941 | $ 1,854 |
Intangible Assets, Net - Detail
Intangible Assets, Net - Details of Intangible Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | |
Finite-Lived Intangible Assets [Line Items] | |||
Total, at cost | $ 15,754 | $ 13,805 | |
Less: accumulated amortization | (5,176) | (3,169) | |
Intangible assets, net | 10,578 | 10,636 | |
Anchor Tenant Relationships [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Total, at cost | [1] | 1,761 | 1,761 |
Leases Acquired In Place [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Total, at cost | 3,579 | 4,215 | |
Policy Renewal Rights [Member] | United [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Total, at cost | 10,100 | 7,634 | |
Non-compete Agreements [Member] | United [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Total, at cost | [2] | $ 314 | $ 195 |
[1] An anchor tenant is a tenant that attracted more customers than other tenants. $ 119 was fully amortized in June 2022 and $ 195 was fully amortized in June 2021. |
Intangible Assets, Net - Deta_2
Intangible Assets, Net - Details of Intangible Assets, Net (Parenthetical) (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Intangible Liability Disclosure [Abstract] | |||||
Amortization expense | $ 119 | $ 195 | $ 2,643 | $ 761 | $ 624 |
Intangible Assets, Net - Additi
Intangible Assets, Net - Additional Information (Detail) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Finite-Lived Intangible Assets [Line Items] | |||||
Intangible assets, net | $ 10,578 | $ 10,636 | |||
Finite-Lived Intangible Assets, Gross | $ 15,754 | $ 13,805 | |||
Stock Issued During Period, Shares, Purchase of Assets | 100,000 | ||||
Commission percentage on aggregate replacement premium | 6% | ||||
Renewal rights commission prepaid up-front | $ 3,800 | ||||
Impairment loss | 2,284 | $ 0 | $ 0 | ||
Gain from remeasurement of contingent liabilities | 3,117 | 0 | 0 | ||
Estimated Contingent Consideration | 1,069 | 2,419 | 0 | ||
Amortization expense | $ 119 | $ 195 | 2,643 | 761 | $ 624 |
Other Liabilities [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Asset Acquisition, Contingent Consideration, Liability | 371 | 2,419 | |||
Renewal Rights and Non-compete Agreement [Member] | United [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-Lived Intangible Assets, Gross | $ 4,869 | $ 7,829 |
Intangible Assets Net - Schedul
Intangible Assets Net - Schedule Of Remaining Weighted Average Amortization Period For Intangible Assets (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Anchor Tenant Relationships [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Remaining weighted-average amortization period | 11 years 6 months |
Leases Acquired In Place [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Remaining weighted-average amortization period | 9 years 8 months 12 days |
Policy Renewal Rights [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Remaining weighted-average amortization period | 3 years 3 months 18 days |
Intangible Assets, Net - Schedu
Intangible Assets, Net - Schedule of Amortization Expense for Intangible Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Finite-Lived Intangible Assets, Amortization Expense, Maturity Schedule [Abstract] | ||
2023 | $ 2,763 | |
2024 | 2,759 | |
2025 | 2,728 | |
2026 | 1,024 | |
2027 | 212 | |
Thereafter | 1,092 | |
Intangible assets, net | $ 10,578 | $ 10,636 |
Other Assets - Summary of Other
Other Assets - Summary of Other Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Benefits receivable related to retrospective reinsurance contracts | $ 16,317 | $ 3,064 |
Reimbursement receivable under TPA service | 5,445 | 3,525 |
Prepaid expenses | 2,826 | 2,853 |
Deposits | 491 | 406 |
Lease acquisition costs, net | 832 | 505 |
Other Assets, Miscellaneous | 5,760 | 4,364 |
Total other assets | $ 31,671 | $ 14,717 |
Revolving Credit Facility - Add
Revolving Credit Facility - Additional Information (Detail) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2022 USD ($) | Sep. 30, 2022 USD ($) | Jun. 30, 2022 USD ($) | Mar. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Sep. 30, 2021 USD ($) | Jun. 30, 2021 USD ($) | Mar. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Sep. 30, 2020 USD ($) | Jun. 30, 2020 USD ($) | Mar. 31, 2020 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Line of Credit Facility [Line Items] | |||||||||||||||
Interest Expense | $ 2,839 | $ 2,813 | $ 1,515 | $ 601 | $ 657 | $ 1,664 | $ 2,000 | $ 2,079 | $ 2,888 | $ 2,856 | $ 3,020 | $ 2,970 | $ 7,768 | $ 6,400 | $ 11,734 |
Long-Term Line of Credit | $ 0 | $ 15,000 | $ 0 | 15,000 | |||||||||||
Maximum [Member] | |||||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||||
debt-to-capital ratio | 67.5 | 67.5 | |||||||||||||
Revolving Credit Facility [Member] | |||||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||||
Credit facility, expiration date | Dec. 31, 2023 | ||||||||||||||
Credit facility borrowing capacity | $ 50,000 | $ 50,000 | |||||||||||||
Repayment of revolving credit facility | 15,000 | ||||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | 50,000 | 50,000 | |||||||||||||
Interest Expense | 227 | 189 | 501 | ||||||||||||
Amortization of Debt Issuance Costs | 125 | $ 98 | $ 158 | ||||||||||||
Long-Term Line of Credit | $ 0 | $ 0 |
Long-Term Debt - Summary of Lon
Long-Term Debt - Summary of Long-Term Debt (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Total principal amount | $ 217,340 | $ 45,849 |
Finance Lease, Liability | 13 | 31 |
Less: unamortized issuance costs | (5,653) | (345) |
Total long-term debt | 211,687 | 45,504 |
4.25% Convertible Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Total principal amount | 23,916 | 23,916 |
4.75% Convertible Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Total principal amount | 172,500 | 0 |
3.90% Promissory Note [Member] | ||
Debt Instrument [Line Items] | ||
Total principal amount | 9,072 | 9,431 |
3.75% Promissory Note [Member] | ||
Debt Instrument [Line Items] | ||
Total principal amount | 6,871 | 7,246 |
4.55% Promissory Note [Member] | ||
Debt Instrument [Line Items] | ||
Total principal amount | $ 4,968 | $ 5,225 |
Long-Term Debt - Summary of L_2
Long-Term Debt - Summary of Long-Term Debt (Parenthetical) (Detail) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Debt Instrument [Line Items] | |||
Debt instrument stated interest rate | 4.25% | 4.25% | 4.25% |
4.25% Convertible Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument stated interest rate | 4.25% | ||
Debt instrument, maturity date | Mar. 01, 2037 | ||
4.75% Convertible Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument stated interest rate | 4.75% | ||
Debt instrument, maturity date | Jun. 01, 2042 | ||
3.90% Promissory Note [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument stated interest rate | 3.90% | ||
Debt instrument, maturity date | Apr. 01, 2032 | ||
3.75% Promissory Note [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument stated interest rate | 3.75% | ||
Debt instrument, maturity date | Sep. 01, 2036 | ||
4.55% Promissory Note [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument stated interest rate | 4.55% | ||
Debt instrument, maturity date | Aug. 01, 2036 | ||
Finance Lease Liabilities [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, maturity date | Oct. 15, 2024 |
Long-Term Debt (Convertible Sen
Long-Term Debt (Convertible Senior Notes) - Additional Information (Detail) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | ||
May 31, 2022 USD ($) | Dec. 31, 2022 USD ($) TradingDay $ / shares | Dec. 31, 2021 USD ($) $ / shares | Dec. 31, 2020 USD ($) $ / shares | |
Debt Instrument [Line Items] | ||||
Debt instrument stated interest rate | 4.25% | 4.25% | 4.25% | |
Cash dividends on common stock | $ / shares | $ 1.60 | $ 1.60 | $ 1.60 | |
Proceeds from the issuance of long-term debt | $ 172,500 | $ 0 | $ 10,000 | |
Convertible notes cash consideration | 0 | 1,895 | 0 | |
Induced Conversion of Convertible Debt Expense | 0 | 1,754 | $ 0 | |
Net carrying value before issuance costs | $ 217,340 | 45,849 | ||
4.25% Convertible Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument stated interest rate | 4.25% | |||
Debt instrument, maturity date | Mar. 01, 2037 | |||
Debt instrument frequency of periodic payment | semiannually in arrears on March 1 and September 1 | |||
Convertible debt, conversion ratio | 16.5320 | |||
Convertible debt, conversion price | $ / shares | $ 60.49 | |||
Net carrying value before issuance costs | $ 23,916 | 23,916 | ||
4.25% Convertible Senior Notes [Member] | Debt Instrument, Redemption, Period One [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument put date | Mar. 01, 2022 | |||
4.25% Convertible Senior Notes [Member] | Debt Instrument, Redemption, Period Two [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument put date | Mar. 01, 2027 | |||
4.25% Convertible Senior Notes [Member] | Debt Instrument, Redemption, Period Three [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument put date | Mar. 01, 2032 | |||
4.25% Convertible Senior Notes [Member] | Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
Cash dividends on common stock | $ / shares | $ 0.35 | |||
4.75% Convertible Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument stated interest rate | 4.75% | |||
Debt instrument, maturity date | Jun. 01, 2042 | |||
Debt instrument frequency of periodic payment | semiannually in arrears on June 1 and December 1 of each year, beginning on December 1, 2022 | |||
Convertible debt, conversion ratio | 12.4166 | |||
Convertible debt, conversion price | $ / shares | $ 80.54 | |||
Proceeds from the issuance of long-term debt | $ 172,500 | |||
Proceeds from Debt, Net of Issuance Costs | 166,486 | |||
Debt Issuance Costs, Gross | $ 6,014 | |||
Debt instrument, effective interest rate | 5.60% | |||
Debt instrument effective rate till final maturity date | 5% | |||
Debt Instrument Convertible Remaining Issuance Costs Amortization Period | 4 years 4 months 24 days | |||
Net carrying value before issuance costs | $ 172,500 | $ 0 | ||
4.75% Convertible Senior Notes [Member] | Debt Instrument, Redemption, Period One [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument put date | Jun. 01, 2027 | |||
4.75% Convertible Senior Notes [Member] | Debt Instrument, Redemption, Period Two [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument put date | Jun. 01, 2032 | |||
4.75% Convertible Senior Notes [Member] | Debt Instrument, Redemption, Period Three [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument put date | Jun. 01, 2037 | |||
Convertible Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Convertible debt, conversion debt description | The holders of the Convertible Senior Notes may convert all or a portion of their convertible senior notes during specified periods prior to each respective maturity date as follows: (1) during any calendar quarter commencing after the calendar quarter ending on the dates specified in each respective indenture, if the last reported sale price of the Company’s common stock for at least 20 trading days during the period of 30 consecutive trading days ending on the last trading day of the immediately preceding calendar quarter is greater than 130% of the conversion price on each applicable trading day; (2) during the five business-day period after any ten consecutive trading-day period in which the trading price per $1 principal amount of the Convertible Senior Notes is less than 98% of the product of the last reported sale price of the Company’s common stock and the conversion rate on each such trading day; (3) if specified corporate events, including a change in control, occur; (4) if the respective Convertible Senior Notes are called for redemption, at any time prior to the dates specified in each respective indenture; or (5) at any time on the dates or during the periods specified in each respective indenture. | |||
Convertible debt, threshold trading days | TradingDay | 20 | |||
Convertible debt, threshold consecutive trading days | TradingDay | 30 | |||
Convertible debt, threshold percentage of stock trigger price | 130% | |||
Convertible Senior Notes [Member] | Convertible Debt Instrument Conversion Period Two [Member] | ||||
Debt Instrument [Line Items] | ||||
Convertible debt, threshold trading days | 5 days | |||
Convertible debt, threshold percentage of stock trigger price | 98% |
Long-Term Debt - Summary of Fut
Long-Term Debt - Summary of Future Maturities of Long-Term Debt (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Long-Term Debt, Rolling Maturity [Abstract] | ||
2022 | $ 1,043 | |
2023 | 1,075 | |
2024 | 1,117 | |
2025 | 1,163 | |
2026 | 197,627 | |
Thereafter | 15,315 | |
Total | $ 217,340 | $ 45,849 |
Long-Term Debt - Schedule of In
Long-Term Debt - Schedule of Interest Expense Related to Long-Term Debt (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Interest Expense, Debt [Abstract] | |||
Contractual interest | $ 6,835 | $ 5,384 | $ 7,083 |
Non-cash expense | 706 | 827 | 4,247 |
Capitalized interest | 0 | 0 | (97) |
Total | $ 7,541 | $ 6,211 | $ 11,233 |
Long-Term Debt (3.90% Promissor
Long-Term Debt (3.90% Promissory Note) - Additional Information (Detail) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 USD ($) Installment | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Debt Instrument [Line Items] | |||
Proceeds from the issuance of long-term debt | $ 172,500 | $ 0 | $ 10,000 |
Fixed interest rate | 4.25% | 4.25% | 4.25% |
3.90% Promissory Note [Member] | |||
Debt Instrument [Line Items] | |||
Fixed interest rate | 3.90% | ||
Debt instrument frequency of periodic payment | monthly | ||
Debt instrument periodic payment | $ 60 | ||
Number of installment payments | Installment | 143 | ||
Date of initial payment | May 01, 2020 | ||
Debt instrument, balloon payment to be paid | $ 5,007 | ||
Outstanding principal and interest payment due date | Apr. 01, 2032 | ||
Debt instruments, payment terms description | The promissory note may be repaid in full at any time as long as the Company provides at least 60 days’ written notice and pays a prepayment premium and processing fee |
Long-Term Debt (3.75% Promissor
Long-Term Debt (3.75% Promissory Note) - Additional Information (Detail) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 USD ($) Installment | Dec. 31, 2021 | Dec. 31, 2020 | |
Debt Instrument [Line Items] | |||
Fixed interest rate | 4.25% | 4.25% | 4.25% |
3.75% Callable Promissory Note [Member] | |||
Debt Instrument [Line Items] | |||
Fixed interest rate | 3.75% | ||
Debt instrument, payment frequency description | monthly | ||
Number of installment payments | Installment | 240 | ||
Debt instrument periodic payment | $ | $ 53 | ||
Debt instruments, payment terms description | The promissory note may be repaid in full as long as the Company provides at least 60 days’ written notice and pays a prepayment premium as specified in the loan agreement. In addition, the lender may require full payment of the outstanding principal and unpaid interest on September 1, 2031 provided a written notice of its intention to call the note is given at least six months in advance | ||
Outstanding principal and interest payment due date | Sep. 01, 2031 |
Long-Term Debt (4.55% Promissor
Long-Term Debt (4.55% Promissory Note) - Additional Information (Detail) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 USD ($) Installment | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Debt Instrument [Line Items] | |||
Proceeds from issuance of long-term debt | $ 172,500 | $ 0 | $ 10,000 |
Debt instrument stated interest rate | 4.25% | 4.25% | 4.25% |
4.55% Promissory note [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument stated interest rate | 4.55% | ||
Debt instrument, payment frequency description | monthly | ||
Number of installment payments | Installment | 216 | ||
Debt instrument periodic payment | $ 41 | ||
Debt instruments, payment terms description | The promissory note may be repaid in full or in part after September 1, 2020 as long as the Company provides at least 30 days’ written notice and pays a prepayment consideration as specified in the loan agreement |
Reinsurance - Additional Inform
Reinsurance - Additional Information (Detail) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Oct. 31, 2022 USD ($) | Dec. 31, 2022 USD ($) Reinsurer | Sep. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) Reinsurer | Dec. 31, 2021 USD ($) Reinsurer | Dec. 31, 2020 USD ($) | |
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | ||||||
Percentage of ceding commission on ceded premiums written | 30% | |||||
Profit commission on net profit | 10% | |||||
Number of reinsurers | Reinsurer | 45 | 45 | 55 | |||
Reinsurance recoverable | $ 688,359 | $ 688,359 | $ 76,650 | |||
Assumed premiums written | $ 12,916 | $ 128,948 | $ 44,539 | |||
Percentage of assumed premiums to net premium earned | 15.80% | 26.11% | 1.11% | |||
Ceded losses recognized as a reduction in losses and loss adjustment expenses | $ 812,623 | $ 40,432 | $ 9,413 | |||
Increase in credit loss expense | 364 | 5 | (368) | |||
Allowances for credit losses related to the reinsurance recoverable balance | 454 | 454 | 90 | |||
Payment for reinstatement premiums | 6,684 | |||||
Write-off of reinsurance premiums | 3,306 | |||||
Net increase in premiums ceded | $ 12,600 | |||||
Reduction in premiums ceded | 18,710 | 10,864 | 15,120 | |||
Reinsurance payable on paid losses and loss adjustment expenses | 8,606 | 8,606 | 4,017 | |||
Premiums Receivable, Net | 34,998 | 34,998 | 68,157 | |||
Premium Refund From Reinsurance Contract | $ 5,457 | |||||
Other assets | 31,671 | 31,671 | 14,717 | |||
Benefits receivable related to retrospective reinsurance contracts | 16,317 | 16,317 | 3,064 | |||
Funds withheld for assumed business | 48,772 | 48,772 | 73,716 | |||
United Insurance Holdings Corporation [Member] | ||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | ||||||
Funds withheld for assumed business | 48,772 | 48,772 | 73,716 | |||
Hurricane Irma [Member] | ||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | ||||||
Ceded losses recognized as a reduction in losses and loss adjustment expenses | 20,000 | 32,144 | 362 | |||
Tropical Storm Eta [Member] | ||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | ||||||
Ceded losses recognized as a reduction in losses and loss adjustment expenses | 10,483 | |||||
Hurricane Michael [Member] | ||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | ||||||
Ceded losses recognized as a reduction in losses and loss adjustment expenses | 4,000 | |||||
Hurricane Sally [Member] | ||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | ||||||
Ceded losses recognized as a reduction in losses and loss adjustment expenses | 4,434 | 88 | ||||
Hurricane Ian | ||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | ||||||
Ceded losses recognized as a reduction in losses and loss adjustment expenses | 782,071 | |||||
Northeast Region Member | United Insurance Holdings Corporation [Member] | ||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | ||||||
Assumed premiums written | (27,488) | 93,607 | ||||
Net amount payable | 1,581 | 1,581 | 4,486 | |||
Ceding commission payable | 581 | 581 | 535 | |||
Reinsurance payable on paid losses and loss adjustment expenses | 1,000 | 1,000 | 4,017 | |||
Premiums Receivable, Net | 66 | |||||
Southeast Region Member | United Insurance Holdings Corporation [Member] | ||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | ||||||
Assumed premiums written | 40,404 | 35,341 | ||||
Net amount receivable | 23,325 | |||||
Net amount payable | 7,521 | 7,521 | ||||
Cost allowance | 3,181 | |||||
Ceding commission payable | 16 | 16 | 8,835 | |||
Reinsurance payable on paid losses and loss adjustment expenses | 7,606 | 7,606 | ||||
Premiums Receivable, Net | $ 101 | 101 | ||||
Other Non-catastrophe Claims [Member] | ||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | ||||||
Ceded losses recognized as a reduction in losses and loss adjustment expenses | $ 69 | $ 3,854 | $ 4,963 | |||
Reinsurance Recoverable [Member] | Reinsurance [Member] | Reinsurer Concentration Risk [Member] | ||||||
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | ||||||
Percentage of reinsurance recoverable major reinsurers | 65.60% |
Reinsurance - Impact of the Rei
Reinsurance - Impact of the Reinsurance Treaties on Premiums Written and Earned (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||||
Premiums Written: | ||||||||||||||||||
Direct | $ 713,103 | $ 545,441 | $ 459,615 | |||||||||||||||
Assumed | 12,916 | 128,948 | 44,539 | |||||||||||||||
Gross Premium written | 726,019 | 674,389 | 504,154 | |||||||||||||||
Premium Ceded | (261,144) | (199,741) | (153,458) | |||||||||||||||
Net premiums written | 464,875 | 474,648 | 350,696 | |||||||||||||||
Premiums Earned: | ||||||||||||||||||
Direct | 651,455 | 478,546 | 412,999 | |||||||||||||||
Assumed | 73,261 | 98,498 | 2,919 | |||||||||||||||
Gross premiums earned | 724,716 | [1] | 577,044 | [2] | 415,918 | [3] | ||||||||||||
Ceded | (261,144) | (199,741) | (153,458) | |||||||||||||||
Net premiums earned | $ 105,918 | $ 106,972 | $ 124,919 | $ 125,763 | $ 102,224 | $ 94,232 | $ 93,004 | $ 87,843 | $ 64,902 | $ 62,463 | $ 73,449 | $ 61,646 | $ 463,572 | $ 377,303 | $ 262,460 | |||
[1] Gross premiums earned under HCPCI Insurance Operations consist of $ 426,501 from HCPCI and $ 12,998 from a reinsurance company. Gross premiums earned under HCPCI Insurance Operations consist of $ 401,137 from HCPCI and $ 3,225 from a reinsurance company. Gross premiums earned under HCPCI Insurance Operations consist of $ 337,082 from HCPCI and $ 5,682 from a reinsurance company. |
Losses and Loss Adjustment Ex_3
Losses and Loss Adjustment Expenses - Losses and LAE (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||||
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | ||||||
Net balance, beginning of year* | [1] | $ 172,410 | $ 141,065 | $ 98,174 | ||
Incurred, net of reinsurance, related to: | ||||||
Current year | 330,836 | 199,888 | 158,236 | |||
Prior years | 40,627 | 27,637 | 1,800 | |||
Total incurred, net of reinsurance | 371,463 | 227,525 | 160,036 | |||
Paid, net of reinsurance, related to: | ||||||
Current year | (169,641) | (95,809) | (71,772) | |||
Prior years | (127,686) | (100,371) | (45,373) | |||
Total paid, net of reinsurance | (297,327) | (196,180) | (117,145) | |||
Net balance, end of year | 246,546 | 172,410 | [1] | 141,065 | [1] | |
Reinsurance recoverable | 617,219 | 64,755 | 71,104 | |||
Gross balance, end of year | $ 863,765 | $ 237,165 | $ 212,169 | |||
[1] Net balance represents beginning-of-year liability for unpaid losses and LAE less beginning-of-year reinsurance recoverable for unpaid losses and LAE. |
Losses and Loss Adjustment Ex_4
Losses and Loss Adjustment Expenses - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Reserves For Losses And Loss Adjustment Expenses [Line Items] | |||
Claims and claim adjustment expenses prior period development | $ 40,627 | $ 27,637 | $ 1,800 |
Claims and claim adjustment expenses overall development | 371,463 | $ 227,525 | $ 160,036 |
United [Member] | |||
Reserves For Losses And Loss Adjustment Expenses [Line Items] | |||
Claims and claim adjustment expenses overall development | 81,651 | ||
Flood [Member] | |||
Reserves For Losses And Loss Adjustment Expenses [Line Items] | |||
Preliminary net loss estimated | 7,000 | ||
Hurricane Nicole [Member] | |||
Reserves For Losses And Loss Adjustment Expenses [Line Items] | |||
Claims and claim adjustment expenses overall development | 6,500 | ||
Hurricane Ian | |||
Reserves For Losses And Loss Adjustment Expenses [Line Items] | |||
Preliminary gross loss estimated | 847,500 | ||
Preliminary net loss estimated | 65,300 | ||
Hurricane Ian | Typ Tap [Member] | |||
Reserves For Losses And Loss Adjustment Expenses [Line Items] | |||
Preliminary gross loss estimated | 395,450 | ||
Hurricane Ian | HCPCI [Member] | |||
Reserves For Losses And Loss Adjustment Expenses [Line Items] | |||
Preliminary gross loss estimated | 452,050 | ||
Short Duration Insurance Contracts Accident Year Two Thousand Twenty One and Prior [Member] | |||
Reserves For Losses And Loss Adjustment Expenses [Line Items] | |||
Claims and claim adjustment expenses prior period development | $ 40,627 |
Losses and Loss Adjustment Ex_5
Losses and Loss Adjustment Expenses - Schedule of Incurred and Paid Claims Development (Detail) $ in Thousands | Dec. 31, 2022 USD ($) Account | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Dec. 31, 2019 USD ($) | Dec. 31, 2018 USD ($) | Dec. 31, 2017 USD ($) | Dec. 31, 2016 USD ($) | Dec. 31, 2015 USD ($) | Dec. 31, 2014 USD ($) | Dec. 31, 2013 USD ($) | |
Homeowners Multi-peril and Dwelling Fire Insurance [Member] | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 1,247,433 | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | [1] | 1,045,816 | |||||||||
All outstanding liabilities before 2013, net of reinsurance | [1] | 10 | |||||||||
Liabilities for loss and LAE, net of reinsurance | [1] | 201,627 | |||||||||
Homeowners Wind-only Insurance [Member] | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | [2],[3] | 13,033 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | [2],[3] | 9,951 | |||||||||
Liabilities for loss and LAE, net of reinsurance | [2],[3] | 3,082 | |||||||||
Losses Specific To Any Hurricane And Storm Events Prior To 2022 [Member] | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 165,981 | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 156,928 | ||||||||||
Liabilities for loss and LAE, net of reinsurance | 9,053 | ||||||||||
Hurricane Ian | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 65,325 | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 32,998 | ||||||||||
Liabilities for loss and LAE, net of reinsurance | 32,327 | ||||||||||
Accident Year 2013 [Member] | Homeowners Multi-peril and Dwelling Fire Insurance [Member] | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | [1] | 74,454 | $ 74,543 | $ 74,543 | $ 74,043 | $ 73,763 | $ 71,604 | $ 72,015 | $ 69,906 | $ 69,932 | $ 67,579 |
Total of IBNR Plus Expected Development Reported Claims | [1] | $ 14 | |||||||||
Cumulative Number of Reported Claims | Account | [1],[4] | 7,009 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | [1] | $ 74,440 | 74,260 | 73,986 | 73,420 | 72,492 | 70,224 | 68,106 | 64,257 | 57,374 | $ 40,240 |
Accident Year 2014 [Member] | Homeowners Multi-peril and Dwelling Fire Insurance [Member] | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | [1] | 93,358 | 93,181 | 92,945 | 92,454 | 90,084 | 88,053 | 84,917 | 81,773 | 75,810 | |
Total of IBNR Plus Expected Development Reported Claims | [1] | $ 372 | |||||||||
Cumulative Number of Reported Claims | Account | [1],[4] | 7,661 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | [1] | $ 92,986 | 92,924 | 92,264 | 90,707 | 87,125 | 82,463 | 77,712 | 68,897 | $ 47,650 | |
Accident Year 2015 [Member] | Homeowners Multi-peril and Dwelling Fire Insurance [Member] | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | [1] | 103,671 | 103,135 | 102,587 | 102,149 | 101,272 | 96,173 | 90,902 | 78,017 | ||
Total of IBNR Plus Expected Development Reported Claims | [1] | $ 266 | |||||||||
Cumulative Number of Reported Claims | Account | [1],[4] | 7,665 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | [1] | $ 103,405 | 102,486 | 101,424 | 99,200 | 95,179 | 87,784 | 76,042 | 50,939 | ||
Accident Year 2015 [Member] | Homeowners Wind-only Insurance [Member] | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | [2],[3] | 582 | 582 | 582 | 605 | 692 | 569 | 401 | 308 | ||
Total of IBNR Plus Expected Development Reported Claims | [2],[3] | $ 0 | |||||||||
Cumulative Number of Reported Claims | Account | [2],[3],[5] | 100 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | [2],[3] | $ 582 | 582 | 582 | 582 | 582 | 465 | 332 | $ 156 | ||
Accident Year 2016 [Member] | Homeowners Multi-peril and Dwelling Fire Insurance [Member] | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | [1] | 92,738 | 92,333 | 92,752 | 92,986 | 92,684 | 90,879 | 81,446 | |||
Total of IBNR Plus Expected Development Reported Claims | [1] | $ 371 | |||||||||
Cumulative Number of Reported Claims | Account | [1],[4] | 6,936 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | [1] | $ 92,367 | 92,001 | 90,989 | 89,144 | 83,311 | 73,037 | 51,663 | |||
Accident Year 2016 [Member] | Homeowners Wind-only Insurance [Member] | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | [2],[3] | 1,948 | 2,255 | 1,837 | 1,853 | 1,814 | 1,314 | 1,005 | |||
Total of IBNR Plus Expected Development Reported Claims | [2],[3] | $ 4 | |||||||||
Cumulative Number of Reported Claims | Account | [2],[3],[5] | 228 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | [2],[3] | $ 1,944 | 1,843 | 1,821 | 1,772 | 1,405 | 1,155 | 689 | |||
Accident Year 2016 [Member] | Losses Specific To Any Hurricane And Storm Events Prior To 2022 [Member] | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 27,634 | 27,634 | 27,634 | 28,133 | 26,211 | 24,126 | 21,414 | ||||
Total of IBNR Plus Expected Development Reported Claims | $ 488 | ||||||||||
Cumulative Number of Reported Claims | Account | [6] | 2,420 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 27,146 | 26,807 | 26,098 | 25,849 | 23,316 | 20,025 | $ 12,227 | ||||
Accident Year 2017 [Member] | Homeowners Multi-peril and Dwelling Fire Insurance [Member] | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | [1] | 90,652 | 90,877 | 90,958 | 89,652 | 88,937 | 91,443 | ||||
Total of IBNR Plus Expected Development Reported Claims | [1] | $ 1,265 | |||||||||
Cumulative Number of Reported Claims | Account | [1],[4] | 5,776 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | [1] | $ 89,387 | 86,364 | 83,383 | 78,808 | 66,996 | 43,039 | ||||
Accident Year 2017 [Member] | Homeowners Wind-only Insurance [Member] | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | [2],[3] | 991 | 923 | 792 | 815 | 1,119 | 1,529 | ||||
Total of IBNR Plus Expected Development Reported Claims | [2],[3] | $ 199 | |||||||||
Cumulative Number of Reported Claims | Account | [2],[3],[5] | 157 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | [2],[3] | $ 792 | 792 | 792 | 789 | 786 | 484 | ||||
Accident Year 2017 [Member] | Losses Specific To Any Hurricane And Storm Events Prior To 2022 [Member] | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 53,636 | 53,628 | 53,624 | 53,557 | 54,080 | 53,602 | |||||
Total of IBNR Plus Expected Development Reported Claims | $ 2 | ||||||||||
Cumulative Number of Reported Claims | Account | [6] | 21,776 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 53,634 | 53,216 | 49,425 | 47,524 | 47,514 | $ 43,905 | |||||
Accident Year 2018 [Member] | Homeowners Multi-peril and Dwelling Fire Insurance [Member] | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | [1] | 82,816 | 83,234 | 83,123 | 83,976 | 79,436 | |||||
Total of IBNR Plus Expected Development Reported Claims | [1] | $ 3,569 | |||||||||
Cumulative Number of Reported Claims | Account | [1],[4] | 4,771 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | [1] | $ 79,247 | 76,311 | 71,809 | 63,958 | 41,014 | |||||
Accident Year 2018 [Member] | Homeowners Wind-only Insurance [Member] | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | [2],[3] | 1,226 | 1,109 | 1,061 | 708 | 798 | |||||
Total of IBNR Plus Expected Development Reported Claims | [2],[3] | $ 302 | |||||||||
Cumulative Number of Reported Claims | Account | [2],[3],[5] | 137 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | [2],[3] | $ 925 | 899 | 745 | 607 | 216 | |||||
Accident Year 2018 [Member] | Losses Specific To Any Hurricane And Storm Events Prior To 2022 [Member] | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 16,476 | 16,532 | 16,532 | 16,532 | 16,543 | ||||||
Total of IBNR Plus Expected Development Reported Claims | $ 0 | ||||||||||
Cumulative Number of Reported Claims | Account | [6] | 1,719 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 16,476 | 16,477 | 16,436 | 15,992 | $ 13,391 | ||||||
Accident Year 2019 [Member] | Homeowners Multi-peril and Dwelling Fire Insurance [Member] | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | [1] | 99,754 | 96,821 | 94,018 | 95,467 | ||||||
Total of IBNR Plus Expected Development Reported Claims | [1] | $ 7,916 | |||||||||
Cumulative Number of Reported Claims | Account | [1],[4] | 5,401 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | [1] | $ 91,839 | 81,941 | 70,182 | 47,471 | ||||||
Accident Year 2019 [Member] | Homeowners Wind-only Insurance [Member] | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | [2],[3] | 2,359 | 1,833 | 1,501 | 1,132 | ||||||
Total of IBNR Plus Expected Development Reported Claims | [2],[3] | $ 589 | |||||||||
Cumulative Number of Reported Claims | Account | [2],[3],[5] | 154 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | [2],[3] | $ 1,770 | 1,451 | 1,290 | $ 828 | ||||||
Accident Year 2019 [Member] | Losses Specific To Any Hurricane And Storm Events Prior To 2022 [Member] | |||||||||||
Claims Development [Line Items] | |||||||||||
Total of IBNR Plus Expected Development Reported Claims | $ 0 | ||||||||||
Cumulative Number of Reported Claims | Account | [6] | 144 | |||||||||
Accident Year 2020 [Member] | Homeowners Multi-peril and Dwelling Fire Insurance [Member] | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | [1] | $ 159,758 | 133,349 | 126,086 | |||||||
Total of IBNR Plus Expected Development Reported Claims | [1] | $ 15,460 | |||||||||
Cumulative Number of Reported Claims | Account | [1],[4] | 8,253 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | [1] | $ 144,298 | 108,388 | 56,173 | |||||||
Accident Year 2020 [Member] | Homeowners Wind-only Insurance [Member] | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | [2],[3] | 3,386 | 1,970 | 1,621 | |||||||
Total of IBNR Plus Expected Development Reported Claims | [2],[3] | $ 951 | |||||||||
Cumulative Number of Reported Claims | Account | [2],[3],[5] | 193 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | [2],[3] | $ 2,435 | 1,461 | 567 | |||||||
Accident Year 2020 [Member] | Losses Specific To Any Hurricane And Storm Events Prior To 2022 [Member] | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 55,235 | 46,284 | 30,264 | ||||||||
Total of IBNR Plus Expected Development Reported Claims | $ 8,179 | ||||||||||
Cumulative Number of Reported Claims | Account | [6] | 3,291 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 47,056 | 34,771 | $ 14,964 | ||||||||
Accident Year 2021 [Member] | Homeowners Multi-peril and Dwelling Fire Insurance [Member] | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | [1] | 186,606 | 187,164 | ||||||||
Total of IBNR Plus Expected Development Reported Claims | [1] | $ 44,550 | |||||||||
Cumulative Number of Reported Claims | Account | [1],[4] | 11,754 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | [1] | $ 142,054 | 85,895 | ||||||||
Accident Year 2021 [Member] | Homeowners Wind-only Insurance [Member] | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | [2],[3] | 1,257 | 682 | ||||||||
Total of IBNR Plus Expected Development Reported Claims | [2],[3] | $ 458 | |||||||||
Cumulative Number of Reported Claims | Account | [2],[3],[5] | 114 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | [2],[3] | $ 799 | 415 | ||||||||
Accident Year 2021 [Member] | Losses Specific To Any Hurricane And Storm Events Prior To 2022 [Member] | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 13,000 | 11,689 | |||||||||
Total of IBNR Plus Expected Development Reported Claims | $ 384 | ||||||||||
Cumulative Number of Reported Claims | Account | [6] | 2,597 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 12,616 | $ 9,323 | |||||||||
Accident Year 2022 [Member] | Homeowners Multi-peril and Dwelling Fire Insurance [Member] | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | [1] | 263,626 | |||||||||
Total of IBNR Plus Expected Development Reported Claims | [1] | $ 127,833 | |||||||||
Cumulative Number of Reported Claims | Account | [1],[4] | 12,563 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | [1] | $ 135,793 | |||||||||
Accident Year 2022 [Member] | Homeowners Wind-only Insurance [Member] | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | [2],[3] | 1,284 | |||||||||
Total of IBNR Plus Expected Development Reported Claims | [2],[3] | $ 580 | |||||||||
Cumulative Number of Reported Claims | Account | [2],[3],[5] | 122 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | [2],[3] | $ 704 | |||||||||
Accident Year 2022 [Member] | Losses Specific To Any Hurricane And Storm Events Prior To 2022 [Member] | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 0 | ||||||||||
Total of IBNR Plus Expected Development Reported Claims | $ 0 | ||||||||||
Cumulative Number of Reported Claims | Account | [6] | 11 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 0 | ||||||||||
Accident Year 2022 [Member] | Hurricane Ian | |||||||||||
Claims Development [Line Items] | |||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 65,325 | ||||||||||
Total of IBNR Plus Expected Development Reported Claims | $ 32,327 | ||||||||||
Cumulative Number of Reported Claims | Account | [7] | 12,861 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 32,998 | ||||||||||
[1] Excludes losses from Wind-only insurance (2013 through 2022) and any hurricane and storm events prior to 2022. Excludes losses from multi-peril and dwelling fire insurance (2013 through 2022) and any hurricane and storm events prior to 2022. The Company began writing Homeowners Wind-only insurance in 2015. The cumulative number of reported claims is measured as the number of per-policyholder, per-event claims for all coverages regardless of whether the claim results in loss or expense to the Company. The cumulative number of reported claims is measured as the number of per-policyholder, per-event claims for all coverages regardless of whether the claim results in loss or expense to the Company. The cumulative number of reported claims is measured as the number of per-policyholder, per-event claims for all coverages regardless of whether the claim results in loss or expense to the Company. The cumulative number of reported claims is measured as the number of per-policyholder, per-event claims for all coverages regardless of whether the claim results in loss or expense to the Company. |
Losses and Loss Adjustment Ex_6
Losses and Loss Adjustment Expenses - Reconciliation of Net Incurred and Paid Loss Development Tables to Liability for Losses and Loss Adjustment Expenses (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | [1] | ||
Shortduration Insurance Contracts Reconciliation Of Claims Development To Liability [Line Items] | |||||||
Liabilities for unpaid losses and loss adjustment expenses, net of reinsurance | $ 246,546 | $ 172,410 | [1] | $ 141,065 | [1] | $ 98,174 | |
Reinsurance recoverable | 617,219 | 64,755 | 71,104 | ||||
Total gross liability for unpaid losses and loss adjustment expenses | 863,765 | 237,165 | $ 212,169 | ||||
Homeowners Multi-peril and Dwelling Fire Insurance [Member] | |||||||
Shortduration Insurance Contracts Reconciliation Of Claims Development To Liability [Line Items] | |||||||
Liabilities for unpaid losses and loss adjustment expenses, net of reinsurance | 201,627 | 155,147 | |||||
Homeowners Wind-only Insurance [Member] | |||||||
Shortduration Insurance Contracts Reconciliation Of Claims Development To Liability [Line Items] | |||||||
Liabilities for unpaid losses and loss adjustment expenses, net of reinsurance | 3,082 | 1,911 | |||||
Losses Specific To Any Hurricane And Storm Events Prior To 2022 [Member] | |||||||
Shortduration Insurance Contracts Reconciliation Of Claims Development To Liability [Line Items] | |||||||
Liabilities for unpaid losses and loss adjustment expenses, net of reinsurance | 9,053 | 15,172 | |||||
Hurricane Ian | |||||||
Shortduration Insurance Contracts Reconciliation Of Claims Development To Liability [Line Items] | |||||||
Liabilities for unpaid losses and loss adjustment expenses, net of reinsurance | 32,327 | 0 | |||||
Other Short-duration Insurance Product Lines [Member] | |||||||
Shortduration Insurance Contracts Reconciliation Of Claims Development To Liability [Line Items] | |||||||
Liabilities for unpaid losses and loss adjustment expenses, net of reinsurance | $ 457 | $ 180 | |||||
[1] Net balance represents beginning-of-year liability for unpaid losses and LAE less beginning-of-year reinsurance recoverable for unpaid losses and LAE. |
Losses and Loss Adjustment Ex_7
Losses and Loss Adjustment Expenses - Supplementary and Unaudited Information about Average Historical Claims Duration (Detail) | Dec. 31, 2022 |
Homeowners Multi-peril and Dwelling Fire Insurance [Member] | |
Shortduration Insurance Contracts Historical Claims Duration [Line Items] | |
Average Annual Percentage Payout of Incurred Losses by Age, Net of Reinsurance, Year 1 | 48.10% |
Average Annual Percentage Payout of Incurred Losses by Age, Net of Reinsurance, Year 2 | 22.40% |
Average Annual Percentage Payout of Incurred Losses by Age, Net of Reinsurance, Year 3 | 8.90% |
Average Annual Percentage Payout of Incurred Losses by Age, Net of Reinsurance, Year 4 | 3.60% |
Average Annual Percentage Payout of Incurred Losses by Age, Net of Reinsurance, Year 5 | 0.20% |
Average Annual Percentage Payout of Incurred Losses by Age, Net of Reinsurance, Year 6 | 1.10% |
Average Annual Percentage Payout of Incurred Losses by Age, Net of Reinsurance, Year 7 | 0.40% |
Average Annual Percentage Payout of Incurred Losses by Age, Net of Reinsurance, Year 8 | 0% |
Average Annual Percentage Payout of Incurred Losses by Age, Net of Reinsurance, Year 9 | 0% |
Average Annual Percentage Payout of Incurred Losses by Age, Net of Reinsurance, Year 10 | 0% |
Homeowners Wind-only Insurance [Member] | |
Shortduration Insurance Contracts Historical Claims Duration [Line Items] | |
Average Annual Percentage Payout of Incurred Losses by Age, Net of Reinsurance, Year 1 | 31.20% |
Average Annual Percentage Payout of Incurred Losses by Age, Net of Reinsurance, Year 2 | 23.60% |
Average Annual Percentage Payout of Incurred Losses by Age, Net of Reinsurance, Year 3 | 12.70% |
Average Annual Percentage Payout of Incurred Losses by Age, Net of Reinsurance, Year 4 | 7.40% |
Average Annual Percentage Payout of Incurred Losses by Age, Net of Reinsurance, Year 5 | 0.10% |
Average Annual Percentage Payout of Incurred Losses by Age, Net of Reinsurance, Year 6 | 0.20% |
Average Annual Percentage Payout of Incurred Losses by Age, Net of Reinsurance, Year 7 | 0.80% |
Average Annual Percentage Payout of Incurred Losses by Age, Net of Reinsurance, Year 8 | 0% |
Losses Specific To Any Hurricane And Storm Events Prior To 2022 [Member] | |
Shortduration Insurance Contracts Historical Claims Duration [Line Items] | |
Average Annual Percentage Payout of Incurred Losses by Age, Net of Reinsurance, Year 1 | 56.50% |
Average Annual Percentage Payout of Incurred Losses by Age, Net of Reinsurance, Year 2 | 22% |
Average Annual Percentage Payout of Incurred Losses by Age, Net of Reinsurance, Year 3 | 9.90% |
Average Annual Percentage Payout of Incurred Losses by Age, Net of Reinsurance, Year 4 | 2.70% |
Average Annual Percentage Payout of Incurred Losses by Age, Net of Reinsurance, Year 5 | 2.50% |
Average Annual Percentage Payout of Incurred Losses by Age, Net of Reinsurance, Year 6 | 0.70% |
Average Annual Percentage Payout of Incurred Losses by Age, Net of Reinsurance, Year 7 | 0.20% |
Hurricane Ian | |
Shortduration Insurance Contracts Historical Claims Duration [Line Items] | |
Average Annual Percentage Payout of Incurred Losses by Age, Net of Reinsurance, Year 1 | 50.50% |
Other Short-duration Insurance Product Lines [Member] | |
Shortduration Insurance Contracts Historical Claims Duration [Line Items] | |
Average Annual Percentage Payout of Incurred Losses by Age, Net of Reinsurance, Year 1 | 55.70% |
Average Annual Percentage Payout of Incurred Losses by Age, Net of Reinsurance, Year 2 | 24.70% |
Average Annual Percentage Payout of Incurred Losses by Age, Net of Reinsurance, Year 3 | 2% |
Average Annual Percentage Payout of Incurred Losses by Age, Net of Reinsurance, Year 4 | 0% |
Average Annual Percentage Payout of Incurred Losses by Age, Net of Reinsurance, Year 5 | 0% |
Average Annual Percentage Payout of Incurred Losses by Age, Net of Reinsurance, Year 6 | 0% |
Average Annual Percentage Payout of Incurred Losses by Age, Net of Reinsurance, Year 7 | 0% |
Segment Information - Additiona
Segment Information - Additional Information (Detail) - Segment | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Segment Reporting Information [Line Items] | |||
Number of operating divisions | 4 | ||
Sales Revenue, Net [Member] | Segment Concentration Risk [Member] | H C P C I Insurance Operations [Member] | |||
Segment Reporting Information [Line Items] | |||
Concentration risk, percentage | 66.10% | 74.60% | 73.40% |
Sales Revenue, Net [Member] | Segment Concentration Risk [Member] | TypTap Group [Member] | |||
Segment Reporting Information [Line Items] | |||
Concentration risk, percentage | 29.90% | 22.70% | 15.50% |
Assets [Member] | Segment Concentration Risk [Member] | H C P C I Insurance Operations [Member] | |||
Segment Reporting Information [Line Items] | |||
Concentration risk, percentage | 53.40% | 58.70% | |
Assets [Member] | Segment Concentration Risk [Member] | TypTap Group [Member] | |||
Segment Reporting Information [Line Items] | |||
Concentration risk, percentage | 37.90% | 29.30% |
Segment Information - Summary o
Segment Information - Summary of Segment Information Reconciled to Consolidated Statements of Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |||||
Revenue: | |||||||||||||||||||
Gross premiums earned | $ 724,716 | [1] | $ 577,044 | [2] | $ 415,918 | [3] | |||||||||||||
Premiums ceded | (261,144) | (199,741) | (153,458) | ||||||||||||||||
Net premiums earned | $ 105,918 | $ 106,972 | $ 124,919 | $ 125,763 | $ 102,224 | $ 94,232 | $ 93,004 | $ 87,843 | $ 64,902 | $ 62,463 | $ 73,449 | $ 61,646 | 463,572 | 377,303 | 262,460 | ||||
Net income from investment portfolio | 24,107 | 20,170 | 5,632 | ||||||||||||||||
Policy fee income | 4,279 | 3,995 | 3,522 | ||||||||||||||||
Gain on involuntary conversion | 0 | 0 | 36,969 | ||||||||||||||||
Gain from remeasurement of contingent liabilities | 3,117 | 0 | 0 | ||||||||||||||||
Other | 4,488 | 6,447 | 1,854 | ||||||||||||||||
Total revenue | 119,943 | 126,654 | 125,926 | 127,040 | 112,320 | 99,217 | 101,504 | 94,874 | 70,313 | 104,027 | 80,717 | 55,380 | 499,563 | 407,915 | 310,437 | ||||
Expenses: | |||||||||||||||||||
Losses and loss adjustment expenses | 72,135 | 139,794 | 86,830 | 72,704 | 63,193 | 62,664 | 55,917 | 45,751 | 40,372 | 51,743 | 39,843 | 28,078 | 371,463 | 227,525 | 160,036 | ||||
Amortization of deferred policy acquisition costs | 100,669 | 86,963 | 49,125 | ||||||||||||||||
Other policy acquisition expenses | 4,308 | 6,951 | 5,361 | ||||||||||||||||
Interest expense | 2,839 | 2,813 | 1,515 | 601 | 657 | 1,664 | 2,000 | 2,079 | 2,888 | 2,856 | 3,020 | 2,970 | 7,768 | 6,400 | 11,734 | ||||
Depreciation and amortization | 4,779 | 2,184 | 1,853 | ||||||||||||||||
Debt conversion expense | 0 | 1,754 | 0 | ||||||||||||||||
Loss on repurchases of convertible senior notes | 0 | 0 | 150 | ||||||||||||||||
Loss on extinguishment of debt | 0 | 0 | 98 | ||||||||||||||||
Impairment loss | 2,284 | 0 | 0 | ||||||||||||||||
Stock-based compensation expense | 15,107 | 13,754 | 8,133 | ||||||||||||||||
Personnel and other operating expenses | 61,603 | 51,151 | 37,019 | ||||||||||||||||
Total expenses | 117,200 | 190,256 | 137,486 | 123,039 | 109,782 | 105,721 | 96,407 | 84,772 | 67,401 | 82,491 | 68,894 | 54,723 | 567,981 | 396,682 | 273,509 | ||||
(Loss) income before income taxes | $ 2,743 | $ (63,602) | $ (11,560) | $ 4,001 | $ 2,538 | $ (6,504) | $ 5,097 | $ 10,102 | $ 2,912 | $ 21,536 | $ 11,823 | $ 657 | (68,418) | 11,233 | 36,928 | ||||
Premiums Written, Gross | 726,019 | 674,389 | 504,154 | ||||||||||||||||
Operating Segments [Member] | H C P C I Insurance Operations [Member] | |||||||||||||||||||
Revenue: | |||||||||||||||||||
Gross premiums earned | 439,499 | [1] | 404,362 | [2] | 342,764 | [3] | |||||||||||||
Premiums ceded | (162,112) | (140,902) | (130,318) | ||||||||||||||||
Net premiums earned | 277,387 | 263,460 | 212,446 | ||||||||||||||||
Net income from investment portfolio | 1,641 | 8,130 | 6,423 | ||||||||||||||||
Policy fee income | 2,482 | 2,794 | 2,702 | ||||||||||||||||
Gain from remeasurement of contingent liabilities | 585 | ||||||||||||||||||
Other | 25,155 | 6,356 | 1,768 | ||||||||||||||||
Total revenue | 307,250 | 280,740 | 223,339 | ||||||||||||||||
Expenses: | |||||||||||||||||||
Losses and loss adjustment expenses | 204,549 | 147,198 | 125,977 | ||||||||||||||||
Amortization of deferred policy acquisition costs | 56,841 | 56,470 | 35,410 | ||||||||||||||||
Other policy acquisition expenses | 2,557 | 2,851 | 3,496 | ||||||||||||||||
Depreciation and amortization | 626 | 86 | 85 | ||||||||||||||||
Impairment loss | 652 | ||||||||||||||||||
Stock-based compensation expense | 3,879 | 3,553 | 1,645 | ||||||||||||||||
Personnel and other operating expenses | 44,752 | 20,647 | 17,778 | ||||||||||||||||
Total expenses | 313,856 | 230,805 | 184,391 | ||||||||||||||||
(Loss) income before income taxes | (6,606) | 49,935 | 38,948 | ||||||||||||||||
Total revenue from non-affiliates | [4] | 273,222 | 277,333 | 221,633 | |||||||||||||||
Premiums Written, Gross | 377,860 | 426,910 | 399,299 | ||||||||||||||||
Operating Segments [Member] | Real Estate Operations [Member] | |||||||||||||||||||
Revenue: | |||||||||||||||||||
Net income from investment portfolio | [5] | 3 | |||||||||||||||||
Gain on involuntary conversion | [5] | 13,402 | 36,969 | ||||||||||||||||
Other | [5] | 10,365 | 12,226 | 9,502 | |||||||||||||||
Total revenue | [5] | 23,767 | 12,226 | 46,474 | |||||||||||||||
Expenses: | |||||||||||||||||||
Interest expense | [5] | 892 | 1,202 | 1,947 | |||||||||||||||
Depreciation and amortization | [5] | 2,501 | 2,319 | 2,526 | |||||||||||||||
Loss on extinguishment of debt | [5] | 98 | |||||||||||||||||
Personnel and other operating expenses | [5] | 4,884 | 4,424 | 5,388 | |||||||||||||||
Total expenses | [5] | 8,277 | 7,945 | 9,959 | |||||||||||||||
(Loss) income before income taxes | [5] | 15,490 | 4,281 | 36,515 | |||||||||||||||
Total revenue from non-affiliates | [4],[5] | 22,413 | 10,872 | 44,709 | |||||||||||||||
Operating Segments [Member] | Corporate and Other [Member] | |||||||||||||||||||
Revenue: | |||||||||||||||||||
Net income from investment portfolio | 2,736 | [6] | 6,613 | [6] | 15 | [7] | |||||||||||||
Other | 3,752 | [6] | 1,794 | [6] | 1,948 | [7] | |||||||||||||
Total revenue | 6,488 | [6] | 8,407 | [6] | 1,963 | [7] | |||||||||||||
Expenses: | |||||||||||||||||||
Interest expense | 6,875 | [6] | 5,467 | [6] | 10,709 | [7] | |||||||||||||
Depreciation and amortization | 868 | [6] | 884 | [6] | 634 | [7] | |||||||||||||
Debt conversion expense | [6] | 1,754 | |||||||||||||||||
Loss on repurchases of convertible senior notes | [7] | 150 | |||||||||||||||||
Stock-based compensation expense | 7,716 | [6] | 6,821 | [6] | 4,680 | [7] | |||||||||||||
Personnel and other operating expenses | 6,548 | [6] | 6,308 | [6] | 7,864 | [7] | |||||||||||||
Total expenses | 22,007 | [6] | 21,234 | [6] | 24,037 | [7] | |||||||||||||
(Loss) income before income taxes | (15,519) | [6] | (12,827) | [6] | (22,074) | [7] | |||||||||||||
Total revenue from non-affiliates | [4] | 3,937 | [6] | 7,406 | [6] | 640 | [7] | ||||||||||||
Operating Segments [Member] | TypTap Group [Member] | |||||||||||||||||||
Revenue: | |||||||||||||||||||
Gross premiums earned | 298,215 | [1] | 175,907 | [2] | 78,836 | [3] | |||||||||||||
Premiums ceded | (110,299) | (61,534) | (28,822) | ||||||||||||||||
Net premiums earned | 187,916 | 114,373 | 50,014 | ||||||||||||||||
Net income from investment portfolio | 3,991 | 1,306 | 793 | ||||||||||||||||
Policy fee income | 1,797 | 1,201 | 820 | ||||||||||||||||
Gain from remeasurement of contingent liabilities | 2,532 | ||||||||||||||||||
Other | 2,302 | 1,606 | 100 | ||||||||||||||||
Total revenue | 198,538 | 118,486 | 51,727 | ||||||||||||||||
Expenses: | |||||||||||||||||||
Losses and loss adjustment expenses | 173,828 | 80,863 | 34,059 | ||||||||||||||||
Amortization of deferred policy acquisition costs | 43,828 | 30,493 | 13,715 | ||||||||||||||||
Other policy acquisition expenses | 1,905 | 4,100 | 1,865 | ||||||||||||||||
Interest expense | 883 | 113 | 2 | ||||||||||||||||
Depreciation and amortization | 3,185 | 1,336 | 1,102 | ||||||||||||||||
Impairment loss | 1,632 | ||||||||||||||||||
Stock-based compensation expense | 3,512 | 3,380 | 1,808 | ||||||||||||||||
Personnel and other operating expenses | 31,548 | 28,357 | 15,637 | ||||||||||||||||
Total expenses | 260,321 | 148,642 | 68,188 | ||||||||||||||||
(Loss) income before income taxes | (61,783) | (30,156) | (16,461) | ||||||||||||||||
Total revenue from non-affiliates | [4] | 207,728 | 119,703 | 52,807 | |||||||||||||||
Premiums Written, Gross | 348,159 | 247,479 | 104,855 | ||||||||||||||||
Intersegment Eliminations [Member] | |||||||||||||||||||
Revenue: | |||||||||||||||||||
Gross premiums earned | (12,998) | [1] | (3,225) | [2] | (5,682) | [3] | |||||||||||||
Premiums ceded | 11,267 | 2,695 | 5,682 | ||||||||||||||||
Net premiums earned | (1,731) | (530) | |||||||||||||||||
Net income from investment portfolio | 15,739 | 4,121 | (1,602) | ||||||||||||||||
Gain on involuntary conversion | (13,402) | ||||||||||||||||||
Other | (37,086) | (15,535) | (11,464) | ||||||||||||||||
Total revenue | (36,480) | (11,944) | (13,066) | ||||||||||||||||
Expenses: | |||||||||||||||||||
Losses and loss adjustment expenses | (6,914) | (536) | |||||||||||||||||
Other policy acquisition expenses | (154) | ||||||||||||||||||
Interest expense | (882) | (382) | (924) | ||||||||||||||||
Depreciation and amortization | (2,401) | (2,441) | (2,494) | ||||||||||||||||
Personnel and other operating expenses | (26,129) | (8,585) | (9,648) | ||||||||||||||||
Total expenses | $ (36,480) | $ (11,944) | $ (13,066) | ||||||||||||||||
[1] Gross premiums earned under HCPCI Insurance Operations consist of $ 426,501 from HCPCI and $ 12,998 from a reinsurance company. Gross premiums earned under HCPCI Insurance Operations consist of $ 401,137 from HCPCI and $ 3,225 from a reinsurance company. Gross premiums earned under HCPCI Insurance Operations consist of $ 337,082 from HCPCI and $ 5,682 from a reinsurance company. Represents amounts before reclassification of certain revenue and expenses to conform with an insurance company’s presentation. Other revenue under real estate primarily consisted of rental income from investment properties. Other revenue under corporate and other primarily consisted of revenue from marina business. Other revenue under corporate and other primarily consisted of revenue from restaurant and marina businesses. |
Segment Information - Summary_2
Segment Information - Summary of Segment Information Reconciled to Statement of Income (Detail) (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||||
Segment Reporting Information [Line Items] | ||||||
Gross premiums earned | $ 724,716 | [1] | $ 577,044 | [2] | $ 415,918 | [3] |
Reinsurance [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Gross premiums earned | 12,998 | 3,225 | 5,682 | |||
HCPCI [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Gross premiums earned | $ 426,501 | $ 401,137 | $ 337,082 | |||
[1] Gross premiums earned under HCPCI Insurance Operations consist of $ 426,501 from HCPCI and $ 12,998 from a reinsurance company. Gross premiums earned under HCPCI Insurance Operations consist of $ 401,137 from HCPCI and $ 3,225 from a reinsurance company. Gross premiums earned under HCPCI Insurance Operations consist of $ 337,082 from HCPCI and $ 5,682 from a reinsurance company. |
Segment Information - Summary_3
Segment Information - Summary of Segment Assets Reconciled to Consolidated Balance Sheet (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Segment Reporting Information [Line Items] | ||
Total assets | $ 1,803,328 | $ 1,176,857 |
Consolidation, Eliminations [Member] | ||
Segment Reporting Information [Line Items] | ||
Total assets | (98,713) | (62,252) |
H C P C I Insurance Operations [Member] | Operating Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
Total assets | 912,233 | 676,509 |
Real Estate Operations [Member] | Operating Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
Total assets | 126,001 | 127,651 |
Corporate and Other [Member] | Operating Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
Total assets | 159,378 | 65,349 |
TypTap Group [Member] | Operating Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
Total assets | $ 704,429 | $ 369,600 |
Leases - Summarizes of Right-of
Leases - Summarizes of Right-of-use Assets and Liabilities for Operating and Finance Leases (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Operating leases: | ||
ROU assets | $ 777 | $ 2,204 |
Total lease obligations | $ 721 | $ 2,203 |
Finance leases: | ||
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Property, Plant and Equipment, Net | Property, Plant and Equipment, Net |
ROU assets | $ 80 | $ 86 |
Finance Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Long Term Debt And Finance Lease Obligations Excluding Line Of Credit | Long Term Debt And Finance Lease Obligations Excluding Line Of Credit |
Liabilities | $ 13 | $ 31 |
Leases - Additional Information
Leases - Additional Information (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure Of Leases [Line Items] | ||
ROU assets | $ 777 | $ 2,204 |
Lease liabilities - operating leases | 721 | $ 2,203 |
Contract Termination [Member] | ||
Disclosure Of Leases [Line Items] | ||
ROU assets | 553 | |
Lease liabilities - operating leases | $ 553 | |
Geographic Distribution, Foreign [Member] | ||
Disclosure Of Leases [Line Items] | ||
Operating lease term | 9 years |
Leases - Summarizes the Company
Leases - Summarizes the Company's operating and finance leases in which the Company (Detail) | 12 Months Ended | |
Dec. 31, 2022 | ||
Minimum [Member] | ||
Operating lease: | ||
Initial Term | 1 month | |
Maximum [Member] | ||
Operating lease: | ||
Initial Term | 9 years | |
Office Equipment [Member] | ||
Operating lease: | ||
Renewal Option | true | |
Office Equipment [Member] | Minimum [Member] | ||
Operating lease: | ||
Initial Term | 1 month | [1],[2] |
Finance lease: | ||
Initial Term | 3 years | [3] |
Office Equipment [Member] | Maximum [Member] | ||
Operating lease: | ||
Initial Term | 51 months | [1],[2] |
Finance lease: | ||
Initial Term | 5 years | [3] |
Office space [Member] | ||
Operating lease: | ||
Renewal Option | true | |
Office space [Member] | Minimum [Member] | ||
Operating lease: | ||
Initial Term | 3 years | [2],[4] |
Office space [Member] | Maximum [Member] | ||
Operating lease: | ||
Initial Term | 9 years | [2],[4] |
[1] (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. (d) There is a bargain purchase option. (c) Rent escalation provisions exist. |
Leases - Maturities of lease li
Leases - Maturities of lease liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Leases [Abstract] | ||
2023 | $ 110 | |
2024 | 91 | |
2025 | 96 | |
2026 | 101 | |
2027 | 106 | |
Thereafter | 361 | |
Total lease payments | 865 | |
Less: interest | 144 | |
Total lease obligations | 721 | $ 2,203 |
2023 | 11 | |
2024 | 2 | |
2025 | 0 | |
2026 | 0 | |
2027 | 0 | |
Thereafter | 0 | |
Total lease payments | 13 | |
Less: interest | 0 | |
Total lease obligations | $ 13 | $ 31 |
Leases -The Company's operating
Leases -The Company's operating and finance leases (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | ||
Finance lease costs: | |||
Amortization – ROU assets | [1] | $ 16 | $ 19 |
Interest expense | 1 | 1 | |
Operating lease costs | [1] | 1,219 | 1,622 |
Short-term lease costs | [1] | 408 | 348 |
Total lease costs | 1,644 | 1,990 | |
Cash paid for amounts included in the measurement of lease liabilities: | |||
Operating cash flows – finance leases | 1 | 1 | |
Operating cash flows – operating leases | 1,194 | 1,626 | |
Financing cash flows – finance leases | $ 18 | $ 19 | |
Weighted-average remaining lease term: | |||
Finance leases (in years) | 1 year 1 month 6 days | ||
Operating leases (in years) | 7 years 10 months 24 days | ||
Weighted-average discount rate: | |||
Finance leases | 3.40% | ||
Operating leases | 4.50% | ||
[1] Included in other operating expenses on the consolidated statements of income. |
Leases - Summarizes the Compa_2
Leases - Summarizes the Company's operating leases (Detail) | 12 Months Ended | |
Dec. 31, 2022 | [1] | |
Office space [Member] | ||
Operating lease: | ||
Renewal Option | true | |
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 | true | |
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 | true | |
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 | |
[1] (e) There are no purchase options. |
Income Taxes - Summary of Incom
Income Taxes - Summary of Income Tax Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Current: | |||
Federal | $ (3,853) | $ 2,332 | $ 1,089 |
State | (275) | 415 | 30 |
Foreign | 194 | 102 | 106 |
Total current taxes | (3,934) | 2,849 | 1,225 |
Deferred: | |||
Federal | (7,828) | 489 | 6,694 |
State | (2,023) | 653 | 1,436 |
Foreign | (30) | 0 | (7) |
Total deferred taxes | (9,881) | 1,142 | 8,123 |
Income tax (benefit) expense | $ (13,815) | $ 3,991 | $ 9,348 |
Income Taxes - Summarized the D
Income Taxes - Summarized the Differences Between the Statutory Federal Income Tax Rate and the Effective Tax Rate (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Income taxes at statutory rate | $ (14,368) | $ 2,359 | $ 7,755 |
State income taxes, net of federal tax benefits | (2,812) | 402 | 1,364 |
Effects of tax rate changes | 0 | 437 | 0 |
Stock-based compensation | (431) | (298) | (296) |
Non-deductible executive compensation | 1,252 | 1,008 | 757 |
Change in valuation allowance | 2,549 | 0 | 0 |
Other | (5) | 83 | (232) |
Income tax (benefit) expense | $ (13,815) | $ 3,991 | $ 9,348 |
Income taxes at statutory rate, percentage | 21% | 21% | 21% |
Increase (decrease) in income taxes resulting from: | |||
State income taxes, net of federal tax benefits, percentage | 4.10% | 3.60% | 3.70% |
Effects of tax rate changes, percentage | 0% | 3.90% | 0% |
Stock-based compensation, percentage | 0.60% | (2.70%) | (0.80%) |
Non-deductible executive compensation, percentage | (1.80%) | 9% | 2% |
Change in valuation allowance, percentage | (3.70%) | 0% | 0% |
Other, percentage | 0% | 0.70% | (0.60%) |
Income tax expense, percentage | 20.20% | 35.50% | 25.30% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Operating Loss Carryforwards [Line Items] | |||
Uncertain tax positions or unrecognized tax benefits | $ 0 | $ 0 | $ 0 |
Interest and penalty | 0 | 0 | 0 |
Income tax (benefit) expense | $ (13,815) | $ 3,991 | $ 9,348 |
Effective tax rate | 20.20% | 35.50% | 25.30% |
Domestic Country [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Net operating loss carryforward | $ 52,494 | ||
State and Local Jurisdiction [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Net operating loss carryforward | $ 65,766 |
Income Taxes - Significant Comp
Income Taxes - Significant Components of Net Deferred Income Tax Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred tax assets: | ||
Net operating loss carryforwards | $ 13,883 | $ 0 |
Unearned premiums | 12,588 | 14,174 |
Losses and loss adjustment expenses | 3,013 | 2,591 |
Stock-based compensation | 1,570 | 1,660 |
Prepaid expenses | 0 | 658 |
Unearned revenue | 426 | 237 |
Net unrealized investment losses | 428 | 0 |
Basis difference related to convertible senior notes | 300 | 169 |
Accrued expenses | 163 | 110 |
Credit losses | 244 | 151 |
Organizational costs | 128 | 102 |
Bad debt reserve | 44 | 56 |
Other | 85 | 0 |
Total deferred tax assets | 32,872 | 19,908 |
Valuation allowance | (2,549) | 0 |
Total deferred tax assets, net of valuation allowance | 30,323 | 19,908 |
Deferred tax liabilities: | ||
Gain on involuntary conversion | (12,500) | (9,202) |
Deferred policy acquisition costs | (12,156) | (15,089) |
Intangible assets | (1,878) | (2,450) |
Basis difference related to partnership investments | (2,942) | (1,313) |
Prepaid expenses | (703) | 0 |
Net unrealized investment gains | 0 | (1,539) |
Property and equipment | (1,515) | (1,511) |
Other | (333) | (543) |
Total deferred tax liabilities | (32,027) | (31,647) |
Net deferred tax liabilities | $ (1,704) | $ (11,739) |
Earnings Per Share - Summary of
Earnings Per Share - Summary of Numerator and Denominator of Basic and Fully Diluted (Loss) Earnings Per Common Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||||||||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |||||||||||||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||||||||||||||||||||||||||||||
Net (loss) income | $ 2,651 | $ (51,503) | $ (8,542) | $ 2,791 | $ 1,435 | $ (4,868) | $ 3,830 | $ 6,845 | $ 2,707 | $ 15,390 | $ 8,936 | $ 547 | $ (54,603) | $ 7,242 | $ 27,580 | ||||||||||||||||
Less: Net income attributable to redeemable noncontrolling interest | (9,106) | (7,399) | 0 | ||||||||||||||||||||||||||||
Less: TypTap Group's net loss attributable to non-HCI common stockholders and TypTap Group's participating securities | 5,198 | 2,013 | |||||||||||||||||||||||||||||
Net (loss) income after noncontrolling interests | (58,511) | 1,856 | 27,580 | ||||||||||||||||||||||||||||
Less: (Income) loss attributable to participating securities | 3,463 | (24) | (1,462) | ||||||||||||||||||||||||||||
Basic Earnings Per Share: | |||||||||||||||||||||||||||||||
Income (loss) allocated to common stockholders (Numerator) | $ (55,048) | $ 1,832 | $ 26,118 | ||||||||||||||||||||||||||||
Weighted Average Number of Shares Outstanding, Basic | 8,817 | [1] | 8,092 | [2] | 7,351 | [3] | |||||||||||||||||||||||||
Basic (loss) earnings per share | $ 0.18 | $ (5.66) | $ (1.04) | $ 0.09 | $ 0.01 | $ (0.72) | $ 0.25 | $ 0.82 | $ 0.35 | $ 1.97 | $ 1.16 | $ 0.07 | $ (6.24) | $ 0.23 | $ 3.55 | ||||||||||||||||
Diluted Earnings Per Share: | |||||||||||||||||||||||||||||||
Net Income (Loss) Available to Common Stockholders, Diluted | $ (55,048) | $ 1,832 | $ 33,823 | ||||||||||||||||||||||||||||
Weighted Average Number of Shares Outstanding, Diluted | 8,817 | [1] | 8,580 | [2] | 9,694 | [3] | |||||||||||||||||||||||||
Earnings Per Share, Diluted | $ 0.18 | [4] | $ (5.66) | [4] | $ (1.04) | [4] | $ 0.09 | [4] | $ 0.01 | [5] | $ (0.72) | [5] | $ 0.24 | [5] | $ 0.75 | [5] | $ 0.35 | [6] | $ 1.68 | [6] | $ 1.08 | [6] | $ 0.07 | [6] | $ (6.24) | $ 0.21 | $ 3.49 | ||||
Warrant [Member] | |||||||||||||||||||||||||||||||
Effect of Dilutive Securities: | |||||||||||||||||||||||||||||||
Dilutive Securities, Shares (Denominator) | [2],[7] | 281 | |||||||||||||||||||||||||||||
Convertible Senior Notes [Member] | |||||||||||||||||||||||||||||||
Effect of Dilutive Securities: | |||||||||||||||||||||||||||||||
Convertible senior notes (Denominator) | [3] | 2,320 | |||||||||||||||||||||||||||||
Convertible senior notes (Numerator) | $ 7,705 | ||||||||||||||||||||||||||||||
Stock Options [Member] | |||||||||||||||||||||||||||||||
Effect of Dilutive Securities: | |||||||||||||||||||||||||||||||
Dilutive Securities, Shares (Denominator) | 207 | [2],[7] | 23 | [3] | |||||||||||||||||||||||||||
[1] Shares in thousands. Shares in thousands. Shares in thousands. During the quarter ended March 31, 2022, the convertible senior notes were antidilutive. During the quarters ended June 30, 2022, September 30, 2022 and December 31, 2022, the convertible senior notes, stock options and warrants were antidilutive. During the quarters ended June 30, 2021 and December 31, 2021, the convertible senior notes were antidilutive. During the quarter ended September 30, 2021, the convertible senior notes, stock options and warrants were antidilutive. During the quarters ended March 31, 2020 and December 31, 2020, the convertible senior notes were antidilutive. * Convertible senior notes were excluded due to antidilutive effect. |
Redeemable Noncontrolling Int_3
Redeemable Noncontrolling Interest - Summary of redeemable noncontrolling interest (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Temporary Equity, Carrying Amount, Including Portion Attributable to Noncontrolling Interests [Abstract] | |||
Beginning Balance | $ 89,955 | $ 0 | |
Initial proceeds from Centerbridge | 0 | 100,000 | |
Increase (Decrease) in Temporary Equity [Roll Forward] | |||
Proceeds allocated to warrants | 0 | (9,217) | |
Issuance costs | 0 | (6,262) | |
Issuance costs allocated to warrants | 0 | 577 | |
Accrued cash dividends | 5,842 | 4,208 | |
Accretion - increasing dividend rates | 3,264 | 3,191 | |
Cash dividends paid to redeemable noncontrolling interest | (5,508) | (2,542) | $ 0 |
Ending Balance | $ 93,553 | $ 89,955 | $ 0 |
Redeemable Noncontrolling Int_4
Redeemable Noncontrolling Interest - Summary of Activity of Redeemable Noncontrolling Interest (Parenthetical) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Temporary Equity, Carrying Amount, Including Portion Attributable to Noncontrolling Interests [Abstract] | |
Net decrease related to warrants | $ 8,640 |
Redeemable Noncontrolling Int_5
Redeemable Noncontrolling Interest (Additional Information) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Feb. 26, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 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 | |||
Payments Of Stock Issuance Costs | $ 6,262 | |||
Warrants | 750,000 | 750,000 | ||
Exercise price | $ 54.40 | $ 54.40 | ||
Estimated fair value of warrants | $ 9,217 | |||
Estimated fair value per warrant | $ 12.29 | |||
Less: Net income attributable to redeemable noncontrolling interest | $ 9,106 | $ 7,399 | $ 0 | |
Accrued cash dividends | 5,842 | 4,208 | ||
Accretion - increasing dividend rates | $ 3,264 | $ 3,191 | ||
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% | |||
TTIG [Member] | Series A Preferred Stock [Member] | ||||
Temporary Equity [Line Items] | ||||
Initial conversion rate | 100% | |||
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] | Minimum [Member] | Series A Preferred Stock [Member] | ||||
Temporary Equity [Line Items] | ||||
Redemption Price per Share | $ 10 |
Equity (Common Stock) - Additio
Equity (Common Stock) - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||||
Oct. 13, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2022 | Mar. 31, 2020 | |
Class of Stock [Line Items] | ||||||
Stock repurchased and retired, total costs | $ (71,242) | $ (1,308) | $ (1,547) | |||
Dividends per common share | $ 0.40 | |||||
Dividends, date of declared | Oct. 13, 2022 | |||||
Dividends, date of record | Nov. 18, 2022 | |||||
Dividends, date of payment | Dec. 16, 2022 | |||||
Common Stock [Member] | ||||||
Class of Stock [Line Items] | ||||||
Repurchase and retirement of common stock, shares | 1,137,336 | 17,193 | 33,633 | |||
Share Repurchase Plan [Member] | ||||||
Class of Stock [Line Items] | ||||||
Common stock repurchase authorized amount | $ 20,000 | $ 20,000 | ||||
Common stock repurchased and retired, weighted average price, excluding fees and commissions | $ 43.61 | $ 39.93 | ||||
Stock repurchased and retired, total costs | $ (17,070) | $ (5,161) | ||||
Common stock repurchased and retired, weighted average price, including fees and commissions | $ 43.64 | $ 39.96 | ||||
Share Repurchase Plan [Member] | Common Stock [Member] | ||||||
Class of Stock [Line Items] | ||||||
Repurchase and retirement of common stock, shares | 391,151 | 129,142 |
Equity (Warrants) - Additional
Equity (Warrants) - Additional Information (Detail) - $ / shares | Dec. 31, 2022 | Feb. 26, 2021 |
Equity [Abstract] | ||
Warrants | 750,000 | 750,000 |
Warrants Expiration Date | Feb. 26, 2025 | |
Exercise price | $ 54.40 | $ 54.40 |
Equity (Share Repurchase Agreem
Equity (Share Repurchase Agreement) Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Class of Stock [Line Items] | |||
Debt instrument stated interest rate | 4.25% | 4.25% | 4.25% |
Stock repurchased and retired, total costs | $ (71,242) | $ (1,308) | $ (1,547) |
4.75% Convertible Senior Notes [Member] | |||
Class of Stock [Line Items] | |||
Debt instrument stated interest rate | 4.75% | ||
Share Repurchase Plan [Member] | |||
Class of Stock [Line Items] | |||
Stock repurchased and retired, total costs | $ (17,070) | $ (5,161) | |
Common stock repurchased and retired, weighted average price, including fees and commissions | $ 43.64 | $ 39.96 | |
Share Repurchase Agreement [Member] | 4.75% Convertible Senior Notes [Member] | |||
Class of Stock [Line Items] | |||
Debt instrument stated interest rate | 4.75% | ||
Stock repurchased and retired, total costs | $ (66,853) | ||
Repurchase and retirement of common stock, shares | 1,037,600 | ||
Common stock repurchased and retired, weighted average price, including fees and commissions | $ 64.43 |
Equity (Prepaid Share Repurchas
Equity (Prepaid Share Repurchase Forward Contract) - Additional Information (Detail) - shares | Dec. 31, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Equity [Abstract] | ||||
Debt instrument stated interest rate | 4.25% | 4.25% | 4.25% | |
Shares delivered under prepaid forward contract | 191,100 |
Equity (Noncontrolling interest
Equity (Noncontrolling interest) - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Class of Stock [Line Items] | |||
Common stock, shares authorized to issue | 40,000,000 | 40,000,000 | |
Common stock, outstanding | 8,598,682 | 10,131,399 | |
Purchase of noncontrolling interests | $ (406) | $ (55) | $ 0 |
TTIG [Member] | |||
Class of Stock [Line Items] | |||
Common stock, outstanding | 81,111,913 | ||
Repurchase and retirement of common stock, shares | 69,876 | 48,901 | |
Purchase of noncontrolling interests | $ (406) | $ (55) | |
Common Stock [Member] | |||
Class of Stock [Line Items] | |||
Repurchase and retirement of common stock, shares | 1,137,336 | 17,193 | 33,633 |
Noncontrolling Interest [Member] | TTIG [Member] | |||
Class of Stock [Line Items] | |||
Common stock, outstanding | 6,111,913 |
Stock-Based Compensation (Incen
Stock-Based Compensation (Incentive Plans) - Additional Information (Detail) | Dec. 31, 2022 shares |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Common shares available for grant | 1,116,205 |
Stock-Based Compensation (Stock
Stock-Based Compensation (Stock Options) - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Stock options vesting period | 4 years | ||
Recognized compensation expenses | $ 15,107 | $ 13,754 | $ 8,133 |
Stock Options [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Stock options exercisable contractual term | 10 years | ||
Recognized compensation expenses | $ 669 | 884 | 1,180 |
Deferred tax benefits recognized | 0 | 2 | $ 76 |
Unrecognized compensation expense related to nonvested stock options | $ 336 | $ 1,005 | |
Recognition of remaining compensation expense over a weighted-average period | 1 year |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Company's Stock Option Plan Activity (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | 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 | 340,000 | |
Granted, Number of options | 110,000 | |||
Exercised, Number of Options | 0 | 0 | (10,000) | |
Outstanding, Ending Balance, Number of Options | 440,000 | 440,000 | 440,000 | 340,000 |
Exercisable, Number of Options | 357,500 | |||
Outstanding, Beginning Balance, Weighted Average Exercise Price | $ 45.25 | $ 45.25 | $ 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 | $ 43.21 |
Exercisable, Weighted-Average Exercise Price | $ 44.23 | |||
Outstanding, Weighted-Average Remaining Contractual Term | 5 years 7 months 6 days | 6 years 7 months 6 days | 7 years 7 months 6 days | 7 years 10 months 24 days |
Exercisable, Weighted-Average Remaining Contractual Term | 5 years 3 months 18 days | |||
Outstanding, Aggregate Intrinsic Value | $ 0 | $ 18,119 | $ 3,113 | $ 1,657 |
Exercisable, Aggregate Intrinsic Value | $ 0 |
Stock-Based Compensation - Info
Stock-Based Compensation - Information about Options Exercised (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share Based Compensation Arrangement By Share Based Payment Award Options Activity [Abstract] | |||
Options exercised | 0 | 0 | 10,000 |
Total intrinsic value of exercised options | $ 0 | $ 0 | $ 288 |
Tax benefits realized | $ 0 | $ 0 | $ 71 |
Stock-Based Compensation - Assu
Stock-Based Compensation - Assumptions Used to Estimate the Fair Value of Stock Options Granted (Detail) | 12 Months Ended |
Dec. 31, 2020 | |
Share-Based Payment Arrangement [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) - $ / shares | 1 Months Ended | 12 Months Ended | |||
Oct. 05, 2022 | Feb. 28, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Vested, Number of Restricted Stock Awards | (231,516) | ||||
Cancelled, Number of Restricted Stock Awards | (141,600) | ||||
Granted, Weighted-Average Grant Date Fair Value | $ 36.57 | ||||
Restricted Stock [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Beginning balance, shares | 679,997 | 423,787 | 396,760 | ||
Granted, Number of Restricted Stock Awards | 7,000 | 564,426 | 192,680 | ||
Vested, Number of Restricted Stock Awards | (333,308) | (109,791) | (146,801) | ||
Cancelled, Number of Restricted Stock Awards | (142,760) | ||||
Forfeited, Number of Restricted Stock Awards | (11,230) | (55,665) | (18,852) | ||
Ending balance, shares | 342,459 | 679,997 | 423,787 | ||
Nonvested, Weighted-Average Grant Date Fair Value, Beginning balance | $ 39.72 | $ 43.79 | $ 41.71 | ||
Granted, Weighted-Average Grant Date Fair Value | 69.17 | 38.79 | 45.57 | ||
Vested, Weighted-Average Grant Date Fair Value | 40.01 | 43.19 | 40.54 | ||
Cancelled, Weighted-Average Grant Date Fair Value | 43.77 | ||||
Forfeited, Weighted-Average Grant Date Fair Value | 45 | 44.01 | 43.60 | ||
Nonvested, Weighted-Average Grant Date Fair Value, Ending balance | $ 39.86 | $ 39.72 | $ 43.79 |
Stock-Based Compensation (Restr
Stock-Based Compensation (Restricted Stock Awards) - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Oct. 05, 2022 | Feb. 28, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Recognized compensation expenses | $ 15,107 | $ 13,754 | $ 8,133 | ||
Restricted stock fair value per share | $ 36.57 | ||||
Restricted Stock Awards Cancelled | 141,600 | ||||
Number of Restricted Stock Awards Vesting | 231,516 | ||||
Restricted Stock [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Recognized compensation expenses | 10,926 | 9,642 | $ 6,953 | ||
Total unrecognized compensation expense, Nonvested restricted stock arrangements granted | $ 8,048 | $ 18,995 | |||
Recognition of remaining compensation expense over a weighted-average period | 2 years 1 month 6 days | ||||
Restricted stock fair value per share | $ 69.17 | $ 38.79 | $ 45.57 | ||
Restricted Stock Awards Cancelled | 142,760 | ||||
Number of Restricted Stock Awards Vesting | 333,308 | 109,791 | 146,801 | ||
Repurchase and retirement of common stock | 80,339 | ||||
Awards issued during the period | 7,000 | 564,426 | 192,680 | ||
Other Than Service Based Restricted Stock Awards [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Awards issued during the period | 0 | 0 |
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 | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Deferred tax benefits recognized | $ 1,780 | $ 1,397 | $ 1,296 |
Tax benefits realized for restricted stock and paid dividends | 2,582 | 1,519 | 1,448 |
Fair value of vested restricted stock | $ 13,337 | $ 4,742 | $ 5,952 |
Stock-Based Compensation - Subs
Stock-Based Compensation - Subsidiary Equity Plan (Additional Information) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Granted, Number of options | 110,000 | ||
Common stock, exercise price | $ 48 | ||
Stock options vesting period | 4 years | ||
Recognized compensation expenses | $ 15,107 | $ 13,754 | $ 8,133 |
Restricted Stock [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Granted, Number of Restricted Stock Awards | 7,000 | 564,426 | 192,680 |
Recognized compensation expenses | $ 10,926 | $ 9,642 | $ 6,953 |
Stock Options [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Recognized compensation expenses | 669 | 884 | $ 1,180 |
Unrecognized compensation expense related to nonvested stock options | 336 | 1,005 | |
TTIG [Member] | Share-Based Awards [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Recognized compensation expenses | 3,512 | 3,228 | |
Unrecognized compensation expense related to nonvested restricted stock and stock options | $ 7,876 | $ 11,230 |
Employee Benefit Plan - Additio
Employee Benefit Plan - Additional Information (Detail) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 USD ($) Plan | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
US Employees [Member] | |||
Employee Benefit Plan [Line Items] | |||
Maximum percentage of employee contribution | 100% | ||
Company contribution in the plan | $ 1,037 | $ 794 | $ 731 |
US Employees [Member] | Deferred Profit Sharing [Member] | |||
Employee Benefit Plan [Line Items] | |||
Company contribution in the plan | $ 0 | ||
US Employees [Member] | Maximum [Member] | |||
Employee Benefit Plan [Line Items] | |||
Maximum percentage of employer contribution | 4% | ||
India Employees [Member] | |||
Employee Benefit Plan [Line Items] | |||
Employment benefit accrued | $ 204 | 158 | |
Matching contribution, number of defined contribution plans | Plan | 2 | ||
Defined benefit plan amount recognized | $ 46 | $ 28 | $ 41 |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Future Minimum Aggregate Premium Amounts Payable to Reinsurer (Details) - Reinsurance [Member] $ in Thousands | Dec. 31, 2022 USD ($) |
Long-Term Purchase Commitment [Line Items] | |
2023 | $ 91,350 |
2024 | 91,350 |
Total | $ 182,700 |
Commitments and Contingencies_2
Commitments and Contingencies - Rental Income Due Under Non-Cancellable Operating Leases (Detail) $ in Thousands | Dec. 31, 2022 USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2023 | $ 4,066 |
2024 | 4,058 |
2025 | 3,900 |
2026 | 3,176 |
2027 | 2,506 |
Thereafter | 11,853 |
Total | $ 29,559 |
Commitments and Contingencies_3
Commitments and Contingencies - Additional Information (Detail) $ in Thousands | 1 Months Ended | 7 Months Ended | ||||
Aug. 31, 2022 | Mar. 31, 2022 | Oct. 31, 2021 | Dec. 31, 2022 USD ($) Reinsurance | May 31, 2022 Reinsurance | Dec. 31, 2021 USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | ||||||
Unfunded Balance | $ | $ 5,661 | $ 11,073 | ||||
Number Of Multi Year Reinsurance Contracts | Reinsurance | 1 | |||||
Number Of Multi Year Contracts Being Commuted | Reinsurance | 2 | |||||
Percentage of FIGA Assessment levied on Collected Premium | 0.70% | 1.30% | 0.70% | |||
Amount of FIGA Assessments payable | $ | $ 2,832 |
Quarterly Results of Operatio_3
Quarterly Results of Operations - Summarize Unaudited Quarterly Results of Operations (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||
Net premiums earned | $ 105,918 | $ 106,972 | $ 124,919 | $ 125,763 | $ 102,224 | $ 94,232 | $ 93,004 | $ 87,843 | $ 64,902 | $ 62,463 | $ 73,449 | $ 61,646 | $ 463,572 | $ 377,303 | $ 262,460 | ||||||||||||
Total revenues | 119,943 | 126,654 | 125,926 | 127,040 | 112,320 | 99,217 | 101,504 | 94,874 | 70,313 | 104,027 | 80,717 | 55,380 | 499,563 | 407,915 | 310,437 | ||||||||||||
Losses and loss adjustment expenses | 72,135 | 139,794 | 86,830 | 72,704 | 63,193 | 62,664 | 55,917 | 45,751 | 40,372 | 51,743 | 39,843 | 28,078 | 371,463 | 227,525 | 160,036 | ||||||||||||
Policy acquisition and other underwriting expenses | 24,028 | 24,678 | 26,863 | 29,408 | 24,158 | 23,340 | 23,169 | 23,065 | 14,832 | 14,210 | 12,991 | 11,826 | 104,977 | 93,732 | 53,859 | ||||||||||||
Interest expense | 2,839 | 2,813 | 1,515 | 601 | 657 | 1,664 | 2,000 | 2,079 | 2,888 | 2,856 | 3,020 | 2,970 | 7,768 | 6,400 | 11,734 | ||||||||||||
Total expenses | 117,200 | 190,256 | 137,486 | 123,039 | 109,782 | 105,721 | 96,407 | 84,772 | 67,401 | 82,491 | 68,894 | 54,723 | 567,981 | 396,682 | 273,509 | ||||||||||||
Income (loss) before income taxes | 2,743 | (63,602) | (11,560) | 4,001 | 2,538 | (6,504) | 5,097 | 10,102 | 2,912 | 21,536 | 11,823 | 657 | (68,418) | 11,233 | 36,928 | ||||||||||||
Net income (loss) | 2,651 | (51,503) | (8,542) | 2,791 | 1,435 | (4,868) | 3,830 | 6,845 | 2,707 | 15,390 | 8,936 | 547 | (54,603) | 7,242 | 27,580 | ||||||||||||
Comprehensive income (loss) | $ 3,593 | $ (58,804) | $ (10,171) | $ 7 | $ 1,128 | $ (5,129) | $ 3,470 | $ 6,705 | $ 2,611 | $ 15,634 | $ 10,286 | $ (1,585) | $ (65,375) | $ 6,174 | $ 26,946 | ||||||||||||
Earnings (loss) per share: | |||||||||||||||||||||||||||
Basic | $ 0.18 | $ (5.66) | $ (1.04) | $ 0.09 | $ 0.01 | $ (0.72) | $ 0.25 | $ 0.82 | $ 0.35 | $ 1.97 | $ 1.16 | $ 0.07 | $ (6.24) | $ 0.23 | $ 3.55 | ||||||||||||
Diluted | $ 0.18 | [1] | $ (5.66) | [1] | $ (1.04) | [1] | $ 0.09 | [1] | $ 0.01 | [2] | $ (0.72) | [2] | $ 0.24 | [2] | $ 0.75 | [2] | $ 0.35 | [3] | $ 1.68 | [3] | $ 1.08 | [3] | $ 0.07 | [3] | $ (6.24) | $ 0.21 | $ 3.49 |
[1] During the quarter ended March 31, 2022, the convertible senior notes were antidilutive. During the quarters ended June 30, 2022, September 30, 2022 and December 31, 2022, the convertible senior notes, stock options and warrants were antidilutive. During the quarters ended June 30, 2021 and December 31, 2021, the convertible senior notes were antidilutive. During the quarter ended September 30, 2021, the convertible senior notes, stock options and warrants were antidilutive. During the quarters ended March 31, 2020 and December 31, 2020, the convertible senior notes were antidilutive. |
Regulatory Requirements and R_3
Regulatory Requirements and Restrictions - Additional Information (Detail) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Sep. 30, 2020 USD ($) | |
Statutory Accounting Practices [Line Items] | ||||
Statutory accounting practices, Statutory amount available for dividend payments without regulatory approval | $ 147,732 | |||
Restricted net assets of Company's insurance subsidiaries | $ 199,503 | $ 215,812 | ||
TypTap [Member] | ||||
Statutory Accounting Practices [Line Items] | ||||
Statutory accounting practices, Future dividend payments restrictions, Capital Surplus Percentage | 10% | |||
Statutory capital and surplus | $ 76,736 | 93,360 | ||
Statutory net income (loss) Amount | $ (31,739) | $ (29,396) | $ (10,900) | |
Deposit in Trust with state regulatory authorities | $ 2,000 | |||
Premium to capital surplus ratio for gross written premiums | 4.11 | 2.40 | 2.47 | |
Premium to capital surplus ratio for net written premiums | 2.34 | 1.61 | 1.50 | |
TypTap [Member] | U.S. Government Security [Member] | ||||
Statutory Accounting Practices [Line Items] | ||||
Deposit in Trust with state regulatory authorities | $ 310 | |||
TypTap [Member] | Minimum [Member] | ||||
Statutory Accounting Practices [Line Items] | ||||
Minimum amount of statutory capital and surplus required | $ 30,479 | $ 19,334 | ||
HCPCI Domiciled in Florida [Member] | ||||
Statutory Accounting Practices [Line Items] | ||||
Statutory accounting practices, Future dividend payments restrictions, Capital Surplus Percentage | 10% | |||
Statutory capital and surplus | $ 103,838 | 120,480 | ||
Statutory net income (loss) Amount | (4,345) | 45 | (28,780) | |
HCPCI Domiciled in Florida [Member] | Minimum [Member] | ||||
Statutory Accounting Practices [Line Items] | ||||
Minimum amount of statutory capital and surplus required | $ 28,845 | 36,173 | ||
HCPCI and TypTap [Member] | ||||
Statutory Accounting Practices [Line Items] | ||||
Deposit in Trust with state regulatory authorities | $ 300 | |||
Insurance Subsidiaries Domiciled In Florida [Member] | ||||
Statutory Accounting Practices [Line Items] | ||||
Statutory accounting practices, Future dividend payments restrictions, Capital Surplus Percentage | 10% | |||
Dividend Distribution On Capital Surplus Under Condition One | 10% | |||
Dividend Distribution On Capital Surplus Under Condition Two | 10% | |||
Percentage of unrealized capital gain under condition 2 | 25% | |||
Dividend distribution open capital surplus under condition 3 | 10% | |||
Percentage of unrealized capital gain under condition 3 | 25% | |||
Statutory accounting practices, Future dividend payments restrictions, Statutory Capital surplus Percentage | 115% | |||
Statutory accounting practices, Future dividend payments restrictions, Notice Period | 30 days | |||
Premium to capital surplus ratios, percentage of written premiums | 90% | |||
Insurance Subsidiaries Domiciled In Florida [Member] | Maximum [Member] | ||||
Statutory Accounting Practices [Line Items] | ||||
Premium to capital surplus ratio for gross written premiums | 10 | |||
Premium to capital surplus ratio for net written premiums | 4 | |||
Claddaugh Domiciled in Bermuda [Member] | ||||
Statutory Accounting Practices [Line Items] | ||||
Minimum amount of statutory capital and surplus required | $ 2,000 | |||
Statutory capital and surplus | 65,992 | 55,350 | ||
Statutory net income (loss) Amount | (21,575) | (2,850) | 1,400 | |
Statutory accounting practices capital contribution | 31,868 | $ 0 | $ 22,600 | |
Us Insurance Subsidiaries [Member] | ||||
Statutory Accounting Practices [Line Items] | ||||
Statutory capital and surplus | 180,574 | |||
Us Insurance Subsidiaries [Member] | Minimum [Member] | ||||
Statutory Accounting Practices [Line Items] | ||||
Minimum amount of statutory capital and surplus required | $ 59,324 |
Regulatory Requirements and R_4
Regulatory Requirements and Restrictions - Summary of Required Ratio of Gross and Net Written Premium to Surplus (Detail) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
HCPCI [Member] | |||
Statutory Accounting Practices [Line Items] | |||
Premium to capital surplus ratio for gross written premiums | 3.30 | 3.21 | 3.02 |
Premium to capital surplus ratio for net written premiums | 1.66 | 2.01 | 1.84 |
TypTap [Member] | |||
Statutory Accounting Practices [Line Items] | |||
Premium to capital surplus ratio for gross written premiums | 4.11 | 2.40 | 2.47 |
Premium to capital surplus ratio for net written premiums | 2.34 | 1.61 | 1.50 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) $ in Thousands | Dec. 21, 2022 | Jun. 01, 2022 | Dec. 22, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Feb. 12, 2021 | Dec. 31, 2020 |
Related Party Transaction [Line Items] | |||||||
Total principal amount | $ 217,340 | $ 45,849 | |||||
Debt instrument stated interest rate | 4.25% | 4.25% | 4.25% | ||||
Revolving Credit Facility [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 50,000 | ||||||
TTIG [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Total principal amount | $ 40,000 | ||||||
TTIG [Member] | Promissory Note [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Total principal amount | $ 15,000 | $ 2,994 | |||||
Debt instrument stated interest rate | 5.50% | 3.25% | 2% | ||||
Debt instrument, maturity date | Dec. 21, 2025 | Jun. 01, 2025 | Jun. 30, 2023 | ||||
TTIG [Member] | Revolving Credit Facility [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 60,000 |
Condensed Financial Informati_3
Condensed Financial Information of HCI Group, Inc. - Balance Sheets (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Assets | ||||
Cash and cash equivalents | $ 234,863 | $ 628,943 | ||
Fixed-maturity securities, Estimated Fair Value | 483,901 | 42,583 | ||
Equity securities, at fair value | 34,583 | 51,740 | ||
Limited partnership investments | 25,702 | 28,133 | ||
Property and equipment, net | 17,910 | 14,232 | ||
Intangible assets, net | 10,578 | 10,636 | ||
Right-of-use assets - operating leases | 777 | 2,204 | ||
Income taxes receivable | 2,807 | 4,084 | ||
Other assets | 31,671 | 14,717 | ||
Total assets | 1,803,328 | 1,176,857 | ||
Liabilities and Stockholders’ Equity | ||||
Lease liabilities - operating leases | 721 | 2,203 | ||
Deferred income taxes, net | 1,704 | 11,739 | ||
Revolving credit facility | 0 | 15,000 | ||
Long-term debt | 211,687 | 45,504 | ||
Total liabilities | 1,548,521 | 762,399 | ||
Total stockholders’ equity | 162,596 | 323,365 | $ 201,136 | $ 185,543 |
Total liabilities, redeemable noncontrolling interest and equity | 1,803,328 | 1,176,857 | ||
HCI Group [Member] | ||||
Assets | ||||
Cash and cash equivalents | 102,755 | 10,366 | ||
Fixed-maturity securities, Estimated Fair Value | 34 | 1,637 | ||
Equity securities, at fair value | 8,662 | 11,513 | ||
Limited partnership investments | 19,446 | 21,722 | ||
Note receivable – related party | 58,102 | 40,022 | ||
Investment in subsidiaries | 274,785 | 332,596 | ||
Property and equipment, net | 805 | 712 | ||
Intangible assets, net | 0 | 5,374 | ||
Right-of-use assets - operating leases | 7,631 | 4,243 | ||
Income taxes receivable | 0 | 3,281 | ||
Other assets | 1,515 | 1,595 | ||
Total assets | 473,735 | 433,061 | ||
Liabilities and Stockholders’ Equity | ||||
Accrued expenses and other liabilities | 1,618 | 2,560 | ||
Lease liabilities - operating leases | 7,607 | 4,290 | ||
Income tax payable | 8,427 | 0 | ||
Deferred income taxes, net | 2 | 900 | ||
Revolving credit facility | 0 | 15,000 | ||
Long-term debt | 191,042 | 23,886 | ||
Due to related parties | 102,443 | 63,060 | ||
Total liabilities | 311,139 | 109,696 | ||
Total stockholders’ equity | 162,596 | 323,365 | ||
Total liabilities, redeemable noncontrolling interest and equity | $ 473,735 | $ 433,061 |
Condensed Financial Informati_4
Condensed Financial Information of HCI Group, Inc. - Statements of Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Condensed Financial Statements Captions [Line Items] | |||||||||||||||
Net investment income (loss) | $ 32,447 | $ 12,335 | $ 4,564 | ||||||||||||
Net realized investment (losses) gains | (1,187) | 6,472 | 1,000 | ||||||||||||
Net unrealized investment (losses) gains | (7,153) | 1,363 | 679 | ||||||||||||
Credit loss expense | 0 | 0 | 611 | ||||||||||||
Other income | 4,488 | 6,447 | 1,854 | ||||||||||||
Loss on repurchases of convertible senior notes | 0 | 0 | (150) | ||||||||||||
Interest expense | $ (2,839) | $ (2,813) | $ (1,515) | $ (601) | $ (657) | $ (1,664) | $ (2,000) | $ (2,079) | $ (2,888) | $ (2,856) | $ (3,020) | $ (2,970) | (7,768) | (6,400) | (11,734) |
Debt conversion expense | 0 | (1,754) | 0 | ||||||||||||
Income tax benefit | 13,815 | (3,991) | (9,348) | ||||||||||||
Equity in (loss) income of subsidiaries | 495 | 417 | (57) | ||||||||||||
Net (loss) income after noncontrolling interests | (58,511) | 1,856 | 27,580 | ||||||||||||
HCI Group [Member] | |||||||||||||||
Condensed Financial Statements Captions [Line Items] | |||||||||||||||
Net investment income (loss) | 5,498 | 3,115 | (676) | ||||||||||||
Net realized investment (losses) gains | (1,154) | 3,344 | 330 | ||||||||||||
Net unrealized investment (losses) gains | (1,609) | 92 | 229 | ||||||||||||
Credit loss expense | 0 | 0 | (20) | ||||||||||||
Other income | 1,138 | 222 | 0 | ||||||||||||
Loss on repurchases of convertible senior notes | 0 | 0 | (150) | ||||||||||||
Interest expense | (6,876) | (5,467) | (10,710) | ||||||||||||
Debt conversion expense | 0 | (1,754) | 0 | ||||||||||||
Operating expenses | (9,877) | (9,056) | (6,887) | ||||||||||||
Loss before income tax benefit and equity in (loss) income of subsidiaries | (12,880) | (9,504) | (17,884) | ||||||||||||
Income tax benefit | 1,700 | 2,086 | 4,024 | ||||||||||||
Net loss before equity in (loss) income of subsidiaries | (11,180) | (7,418) | (13,860) | ||||||||||||
Equity in (loss) income of subsidiaries | (47,331) | 9,274 | 41,440 | ||||||||||||
Net (loss) income after noncontrolling interests | $ (58,511) | $ 1,856 | $ 27,580 |
Condensed Financial Informati_5
Condensed Financial Information of HCI Group, Inc. - Statements of Cash Flows (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash flows from operating activities: | |||
Net (loss) income after noncontrolling interests | $ (58,511) | $ 1,856 | $ 27,580 |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | |||
Stock-based compensation expense | 15,107 | 13,754 | 8,133 |
Net realized investment losses (gains) | 1,187 | (6,472) | (1,000) |
Net unrealized investment losses (gains) | 7,153 | (1,363) | (679) |
Net amortization of premiums (accretion of discount) on investments in fixed-maturity securities | (961) | 169 | (100) |
Depreciation and amortization | 8,010 | 5,549 | 8,747 |
Net (income) loss from limited partnership interests | (3,963) | (4,947) | 1,595 |
Distributions from limited partnership interests | 3,001 | 3,604 | 1,215 |
Credit losses on investments | 0 | 0 | (611) |
Debt conversion expense | 0 | 1,754 | 0 |
Loss on repurchases of convertible senior notes | 0 | 0 | 150 |
Equity in loss (income) of subsidiaries | (495) | (417) | 57 |
Total deferred taxes | (9,881) | 1,142 | 8,123 |
Changes in operating assets and liabilities: | |||
Income taxes | 1,277 | 470 | (3,514) |
Other assets | (15,581) | 4,487 | (4,578) |
Accrued expenses and other liabilities | (8,397) | 1,642 | 20,303 |
Net cash (used in) provided by operating activities | (12) | 96,503 | 77,311 |
Cash flows from investing activities: | |||
Investments in limited partnership interests | (1,967) | (3,756) | (4,241) |
Purchase of fixed-maturity securities | (614,843) | (18,303) | (34,951) |
Purchase of equity securities | (22,887) | (102,801) | (68,223) |
Purchase of short-term and other investments | (42) | (1,307) | (200) |
Purchase of intangible assets | (3,800) | 0 | 0 |
Purchase of property and equipment | (6,341) | (3,318) | (6,437) |
Proceeds from sales of fixed-maturity securities | 11,716 | 23,055 | 81,433 |
Proceeds from calls, repayments and maturities of fixed-maturity securities | 151,415 | 23,430 | 84,459 |
Proceeds from sales of equity securities | 31,605 | 112,310 | 47,312 |
Proceeds from sales, redemptions and maturities of short-term and other investments | 570 | 3,629 | 997 |
Distributions received from limited partnership interests | 5,360 | 4,657 | 2,086 |
Received distribution | 351 | 623 | 0 |
Net cash (used in) provided by investing activities | (434,537) | 36,852 | 143,215 |
Cash flows from financing activities: | |||
Repurchases of common stock | (71,242) | (1,314) | (1,547) |
Repurchases of common stock under share repurchase plan | (17,070) | 0 | (5,161) |
Repurchases of convertible senior notes | 0 | 0 | (4,459) |
Debt issuance costs | (6,041) | (152) | (165) |
Cash dividends paid | (15,233) | (14,065) | (12,694) |
Cash dividends received under share repurchase forward contract | 76 | 306 | 306 |
Net (repayment) borrowing under revolving credit facility | (15,000) | (8,750) | 14,000 |
Proceeds from exercise of stock options | 0 | 0 | 63 |
Debt conversion expense paid | 0 | (1,895) | 0 |
Net cash provided by (used in) financing activities | 41,067 | 64,301 | (16,705) |
Net (decrease) increase in cash, cash equivalents, and restricted cash | (393,580) | 197,602 | 203,823 |
Cash and cash equivalents at beginning of year | 631,343 | ||
Cash and cash equivalents at end of year | 237,763 | 631,343 | |
HCI Group [Member] | |||
Cash flows from operating activities: | |||
Net (loss) income after noncontrolling interests | (58,511) | 1,856 | 27,580 |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | |||
Stock-based compensation expense | 6,430 | 5,874 | 4,488 |
Net realized investment losses (gains) | 1,154 | (3,344) | (330) |
Net unrealized investment losses (gains) | 1,609 | (92) | (229) |
Net amortization of premiums (accretion of discount) on investments in fixed-maturity securities | (110) | 3 | (42) |
Depreciation and amortization | 1,403 | 1,490 | 4,686 |
Net (income) loss from limited partnership interests | (3,345) | (2,608) | 1,781 |
Distributions from limited partnership interests | 2,123 | 1,477 | 844 |
Credit losses on investments | 0 | 0 | 20 |
Debt conversion expense | 0 | 1,754 | 0 |
Loss on repurchases of convertible senior notes | 0 | 0 | 150 |
Equity in loss (income) of subsidiaries | 47,331 | (9,274) | (41,440) |
Total deferred taxes | (895) | 232 | (935) |
Changes in operating assets and liabilities: | |||
Income taxes | 11,708 | 5,067 | (9,791) |
Other assets | (2,805) | 2,679 | (629) |
Accrued expenses and other liabilities | 4,078 | (5,620) | 1,096 |
Due to related parties | 38,696 | 5,360 | 17,438 |
Net cash (used in) provided by operating activities | 48,866 | 4,854 | 4,687 |
Cash flows from investing activities: | |||
Investments in limited partnership interests | (1,261) | (2,616) | (3,376) |
Investment in note receivable - related party | (15,000) | (40,000) | (22,000) |
Purchase of fixed-maturity securities | (52,576) | (1,685) | (7) |
Purchase of equity securities | (11,406) | (76,786) | (35,855) |
Purchase of short-term and other investments | (42) | (1,307) | (200) |
Purchase of intangible assets | (3,800) | 0 | 0 |
Purchase of property and equipment | (581) | (365) | (742) |
Proceeds from sales of fixed-maturity securities | 86 | 134 | 447 |
Proceeds from calls, repayments and maturities of fixed-maturity securities | 54,178 | 145 | 27 |
Proceeds from sales of equity securities | 10,975 | 78,555 | 30,688 |
Proceeds from sales, redemptions and maturities of short-term and other investments | 570 | 3,618 | 537 |
Collection of note receivable - related party | 0 | 23,280 | 0 |
Distributions received from limited partnership interests | 4,759 | 2,567 | 1,614 |
Dividends received from subsidiary | 51,500 | 41,900 | 52,500 |
Received distribution | 0 | 0 | 9 |
Investment in subsidiaries | (41,868) | (10,000) | (22,629) |
Net cash (used in) provided by investing activities | (4,466) | 17,440 | 1,013 |
Cash flows from financing activities: | |||
Repurchases of common stock | (71,242) | (1,314) | (1,547) |
Repurchases of common stock under share repurchase plan | (17,070) | 0 | (5,161) |
Repurchases of convertible senior notes | 0 | 0 | (4,459) |
Debt issuance costs | (6,041) | (152) | 0 |
Cash dividends paid | (15,233) | (14,065) | (12,694) |
Cash dividends received under share repurchase forward contract | 76 | 306 | 306 |
Net (repayment) borrowing under revolving credit facility | (15,000) | (8,750) | 14,000 |
Proceeds from exercise of stock options | 0 | 0 | 63 |
Debt conversion expense paid | 0 | (1,895) | 0 |
Proceeds from issuance of long-term debt | 172,500 | 0 | 0 |
Repayment of long-term debt | (1) | (2) | (2) |
Net cash provided by (used in) financing activities | 47,989 | (25,872) | (9,494) |
Net (decrease) increase in cash, cash equivalents, and restricted cash | 92,389 | (3,578) | (3,794) |
Cash and cash equivalents at beginning of year | 10,366 | 13,944 | 17,738 |
Cash and cash equivalents at end of year | $ 102,755 | $ 10,366 | $ 13,944 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||||||||
Feb. 16, 2023 | Feb. 14, 2023 | Feb. 05, 2023 | Jan. 17, 2023 | Jan. 11, 2023 | Oct. 13, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Subsequent Event [Line Items] | |||||||||
Dividends per common share | $ 0.40 | ||||||||
Dividends, date of declared | Oct. 13, 2022 | ||||||||
Dividends, date of record | Nov. 18, 2022 | ||||||||
Dividends, date of payment | Dec. 16, 2022 | ||||||||
Received distribution | $ 351 | $ 623 | $ 0 | ||||||
Funds withheld for assumed business | 48,772 | 73,716 | |||||||
United [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Net amount due to entity | 1,114 | ||||||||
Funds withheld for assumed business | $ 48,772 | $ 73,716 | |||||||
Unconsolidated Joint Venture | |||||||||
Subsequent Event [Line Items] | |||||||||
Interest liquidated | 90% | ||||||||
FMKTMelJV [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Liquidation date | Dec. 31, 2022 | ||||||||
Subsequent Event [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Dividends per common share | $ 0.40 | ||||||||
Dividends, date of declared | Jan. 11, 2023 | ||||||||
Dividends, date of record | Feb. 17, 2023 | ||||||||
Dividends, date of payment | Mar. 17, 2023 | ||||||||
Subsequent Event [Member] | Retail Shopping Center [Member] | Sorrento, Florida | |||||||||
Subsequent Event [Line Items] | |||||||||
Proceeds from sale of investment property | $ 13,418 | ||||||||
Subsequent Event [Member] | Retail Shopping Center [Member] | Melbourne, Florida | |||||||||
Subsequent Event [Line Items] | |||||||||
Proceeds from sale of investment property | $ 18,500 | ||||||||
Subsequent Event [Member] | Demand Promissory Note [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Debt face amount | $ 40,000 | ||||||||
Subsequent Event [Member] | Demand Promissory Note [Member] | Extended Maturity [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Debt instrument, maturity date | Jun. 30, 2025 | ||||||||
Subsequent Event [Member] | FMKTMelJV [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Received distribution | $ 18 |